Southstate Bank Corporation · NYSE:SSB
Southstate Bank — Shareholder Meeting (April 2024)
25 slides from Southstate Bank's shareholder meeting presentation, Apr 24, 2024
Slide 1: Annual Shareholders' Meeting, April 24, 2024
Annual Shareholders’ Meeting Wednesday, April 24, 2024 Exhibit 99.1
Slide 2: Disclaimer
DISCLAIMER Statements included in this communication, which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act o
Slide 3: SouthState Corporation Overview of Franchise
(1) Financial metrics as of December 31, 2023; market cap as of January 24, 2024 SouthState Corporation Overview of Franchise (1) (251) $37 Billion in deposits $32 Billion in loans $45 Billion in assets $6.3 Billion market cap 3 17 Greenwich Excellence & Best Brand Awards for Small Business Banking
Slide 4: Guiding Principles and Core Values
Local Market Leadership Our business model supports the unique character of the communities we serve and encourages decision making by the banker that is closest to the customer. Long-Term Horizon We think and act like owners and measure success over entire economic cycles. We prioritize soundness b
Slide 5: Leading Southeast Consolidator
Note: shows all branch, partial, and whole bank acquisitions by CenterState, South State, or one of their acquisition targets since 1/1/09 Source: S&P Global Market Intelligence Assets and label position as of announcement; numbers in bubbles denote assets acquired (1) Denotes direct acquisition for
Slide 6: M&A Accelerates Transition from Bricks to Clicks
M&A ACCELERATES TRANSITION FROM “BRICKS” TO “CLICKS” 6 85 Branches Average Size $40M 422 Branches Acquired Plus 12 DeNovo Branches 268 Branches Consolidated or Sold 251 Branches Average Size $148M Increased deposits per branch 3.7x from 2009 to 4Q23 85 434 268 251 2009 …..……………..………..……....………………………
Slide 7: Positioned for the Future in the Best Growth Markets in America
17.8% 13.7%12.8% 11.9% 8.9% 8.3% 6.0% FL SC GA NC VA U.S. AL Actual Population Growth 2010-2023 $1.9B $1.9B $0.8B $0.6B $2.9B $2.0B POSITIONED FOR THE FUTURE IN THE BEST GROWTH MARKETS IN AMERICA 5.3% 4.7% 3.9% 3.7% 3.0% 3.0% 2.4% FL SC NC GA VA AL U.S. Projected Population Growth 2024-2029 1.2 0.3
Slide 8: Pandemic Accelerates Population Migration to the South
PANDEMIC ACCELERATES POPULATION MIGRATION TO THE SOUTH Top 10 States Net Domestic Migration 1. Florida 818,762 2. Texas 656,220 3. North Carolina 310,189 4. South Carolina 248,055 5. Arizona 218,247 6. Tennessee 207,097 7. Georgia 185,752 8. Idaho 104,313 9. Alabama 96,538 10. Oklahoma 80,064 8 Sour
Slide 9: CRE Trends – SouthState Footprint vs. Top MSAs
CRE TRENDS – SOUTHSTATE FOOTPRINT VS. TOP 25 MSAs (1) 22% 18% 18% 17% 16% 16% 16% 16% 16% 16% 14% 14% 14% 13% 12% 12% 12% 11% 11% 11% 11% 11% 10% 10% 9% 9% 9% 8% 8% 8% 8% 8% 8% 5% 4% 4% 2% San Francisco Houston Dallas/Ft Worth Austin Washington DC Chicago Denver Phoenix Los Angeles Atlanta Seattle N
Slide 10: Banking Industry – Impact of Federal Reserve Monetary Policy
$0T $1T $2T $3T $4T $5T $6T $7T $8T $9T -10% -5% 0% 5% 10% 15% 20% 25% 2017 2018 2019 2020 2021 2022 2023 2024 Loans Deposits Fed Balance Sheet 10 BANKING INDUSTRY – IMPACT OF FEDERAL RESERVE MONETARY POLICY Source: Federal Reserve; All Commercial Banks Year-over-Year Growth COVID-19
Slide 11: Longest Period of Inverted Yield Curve
LONGEST PERIOD OF INVERTED YIELD CURVE (1) (1) Projected current cycle estimated length of inversion based on Moody’s April 2024 Baseline rate forecast 0 1 2 3 4 Normal Length of Inversion Since 1978 Current Cycle - Estimated Length of Inversion 1 Year 2 Years 3 Years 0 11
Slide 12: Deposits – Double Digit Annual Growth
DEPOSITS – DOUBLE DIGIT ANNUAL GROWTH 12 $25.4B $30.7B $35.1B $36.4B $37.0B $20 $25 $30 $35 $40 2019* 2020 2021 2022 2023 $ in billions * The combined historical information referred to in this presentation as the “Combined Business Basis” presented is based on the reported GAAP results of the Compa
Slide 13: Loan Production
LOAN PRODUCTION (1) (1) Excludes loans held for sale and PPP; loan production indicates committed balance total * The combined historical information referred to in this presentation as the “Combined Business Basis” presented is based on the reported GAAP results of the Company and CenterState for t
Slide 14: Loan Growth
LOAN GROWTH 14 $23.4B $22.7B $23.7B $30.2B $32.4B $20 $25 $30 $35 2019* 2020 2021 2022 2023 $ in billions * The combined historical information referred to in this presentation as the “Combined Business Basis” presented is based on the reported GAAP results of the Company and CenterState for the app
Slide 15: Adjusted Earnings Per Share Growth, Diluted
ADJUSTED EARNINGS PER SHARE GROWTH, DILUTED 15 $5.63 $5.12 $7.58 $7.10 $6.86 $4 $5 $6 $7 $8 2019 2020 2021 2022 2023 Adjusted figures above exclude the impact of securities gains or losses, merger and branch consolidation related expense, FHLB Advances prepayment penalty, initial provision for credi
Slide 16: Steady Asset Quality Despite Volatile CECL Provisions
$23.4 $281.1 ($165.3) $81.9 $114.1 $15.6 $5.0 $3.1 $4.2 $24.8 -$200 -$100 $0 $100 $200 $300 2019* 2020* 2021 2022 2023 $ in millions Provision (Recovery) for Credit Losses Net Charge-Offs 16 STEADY ASSET QUALITY DESPITE VOLATILE CECL PROVISIONS * The combined historical information referred to in th
Slide 17: PPNR Per Share Growth, Diluted
PPNR PER SHARE GROWTH, DILUTED 17 $7.32 $8.44 $7.31 $9.92 $10.25 $6 $7 $8 $9 $10 $11 2019 2020 2021 2022 2023 Adjusted PPNR per weighted average diluted share; this is a Non-GAAP financial measure that excludes the impact of merger and branch consolidation related expense and gain on sale of securit
Slide 18: 2023 Stock Performance vs. Indexes
43% 24% 11% -4% -5% -10% 0% 10% 20% 30% 40% 50% NASDAQ S&P 500 SSB Regional Banks (KRX) Big Banks (BKX) SSB 2023 STOCK PERFORMANCE VS. INDEXES 18
Slide 19: 2-Year Stock Performance vs. Indexes
5% 0% -4% -13% -27% -30% -25% -20% -15% -10% -5% 0% 5% 10% SSB S&P 500 NASDAQ Regional Banks (KRX) Big Banks (BKX) SSB 2 - YEAR STOCK PERFORMANCE VS. INDEXES 19
Slide 20: 3-Year Stock Performance vs. Indexes
27% 17% 16% 16% -2% -5% 0% 5% 10% 15% 20% 25% 30% S&P 500 SSB NASDAQ Regional Banks (KRX) Big Banks (BKX) SSB 3 - YEAR STOCK PERFORMANCE VS. INDEXES 20
Slide 21: Investment Thesis
INVESTMENT THESIS • High growth markets • Granular, low-cost relationship deposits • Entrepreneurial ownership culture • Scale and digital evolution to compete with the largest banks 21
Slide 22: Appendix
Appendix Ga
Slide 23: Non-GAAP Reconciliations – Adjusted Net Income & Adjusted EPS
NON - GAAP RECONCILIATIONS – ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (“EPS”) Dollars in thousands, except for per share data 23 Adjusted Net Income 2019 2020 2021 2022 2023 Net income (GAAP) $ 186,483 $ 120,632 $ 475,543 $ 496,049 $ 494,308 Plus: Securities gains, net of tax (2,173) (41) (
Slide 24: Non-GAAP Reconciliations – PPNR, Adjusted, PPNR/Weighted Avg. CS
Dollars in thousands, except for per share data 24 NON - GAAP RECONCILIATIONS – PPNR, ADJUSTED, PPNR/WEIGHTED AVG. CS 2019 2020 2021 2022 2023 SSB SSB SSB SSB SSB Net interest income (GAAP) $ 504,275 $ 826,465 $ 1,033,175 $ 1,335,671 $ 1,452,608 Plus: Noninterest income 143,565 311,140 354,252 309,2
Slide 25: SouthState
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