Southstate Bank Corporation · NYSE:SSB
Southstate Bank — Shareholder Meeting (April 2023)
21 slides from Southstate Bank's shareholder meeting presentation, Apr 26, 2023
Slide 1: Annual Shareholders' Meeting April 26, 2023
Annual Shareholders’ Meeting Wednesday, April 26, 2023 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
$36 Billion in deposits $30 Billion in loans $44 Billion in assets $5.8 Billion market cap (1) Financial metrics and market cap as of December 31, 2022 SouthState Corporation Overview of Franchise (1) 3 (251) #1 in Florida #3 in South Carolina Top 30 Forbes 100 Best Banks in America 2022 16 Greenwic
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” 85 Branches Average Size $40M 422 Branches Acquired Plus 12 DeNovo Branches 268 Branches Consolidated or Sold 251 Branches Average Size $145M Increased deposits per branch 3.6x from 2009 to 4Q22 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 $10.1B $12.2B $1.7B $1.7B $6.9B $11.0B $0.7B $0.5B $6.2B $6.5B $2.7B $2.0B Loans Deposits POSITIONED FOR THE FUTURE IN THE BEST GROWTH MARKETS IN AMERICA 5.0% 4.3% 3.7% 3.7% 2.6% 2.1% 1.9% FL SC GA NC VA
Slide 8: Pandemic Accelerates Population Migration to the South
Source: U.S. Census Bureau PANDEMIC ACCELERATES POPULATION MIGRATION TO THE SOUTH Net Domestic Migration in SouthState Footprint Florida 622,476 North Carolina 211,867 South Carolina 165,948 Georgia 128,089 Alabama 65,355 Virginia -29,775 TOTAL 1,163,960 8
Slide 9: Banking Industry – Impact of Federal Reserve Monetary Policy
9 BANKING INDUSTRY – IMPACT OF FEDERAL RESERVE MONETARY POLICY Source: Federal Reserve; All Commercial Banks Year-over-Year Growth $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 Loans Deposits COVID-19 Fed Balance Sheet
Slide 10: Deposits – Double Digit Annual Growth
DEPOSITS – DOUBLE DIGIT ANNUAL GROWTH 10 $25.4B $30.7B $35.1B $36.4B $20 $25 $30 $35 $40 2019* 2020 2021 2022 $ 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 Cente
Slide 11: 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 12: Loan Growth
LOAN GROWTH 12 $23.4B $22.7B $23.7B $30.2B $20 $25 $30 $35 2019* 2020 2021 2022 $ 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 applicable peri
Slide 13: Adjusted Earnings Per Share Growth, Diluted
ADJUSTED EARNINGS PER SHARE GROWTH, DILUTED 13 $5.63 $5.12 $7.58 $7.10 $4 $5 $6 $7 $8 2019 2020 2021 2022 Adjusted figures above exclude the impact of securities gains or losses, merger and branch consolidation related expense, FHLB Advances prepayment penalty, initial provision for credit losses on
Slide 14: Steady Asset Quality Despite Volatile CECL Provisions
$23.4 $281.1 ($165.3) $81.9 $15.6 $5.0 $3.1 $4.2 -$200 -$100 $0 $100 $200 $300 2019* 2020* 2021 2022 $ in millions Provision (Recovery) for Credit Losses Net Charge-Offs 14 STEADY ASSET QUALITY DESPITE VOLATILE CECL PROVISIONS * The combined historical information referred to in this presentation as
Slide 15: PPNR Per Share Growth, Diluted
PPNR PER SHARE GROWTH, DILUTED 15 $7.32 $8.44 $7.31 $9.92 $5 $6 $7 $8 $9 $10 2019 2020 2021 2022 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 securities - See rec
Slide 16: 2022 Stock Performance vs. Indexes
-5% -9% -19% -24% -33% -35% -30% -25% -20% -15% -10% -5% 0% SSB Regional Banks (KRX) S&P 500 Big Banks (BKX) NASDAQ 2022 STOCK PERFORMANCE VS. INDEXES 16
Slide 17: Investment Thesis
INVESTMENT THESIS • High growth markets • Scale and digital evolution to compete with the largest banks • Granular, low-cost relationship deposits • Entrepreneurial ownership culture 17
Slide 18: Appendix
Appendix Ga
Slide 19: 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 19 Adjusted Net Income 2019 2020 2021 2022 Net income (GAAP) $ 186,483 $ 120,632 $ 475,543 $ 496,049 Plus: Securities gains, net of tax (2,173) (41) (81) (24) PCL -
Slide 20: Non-GAAP Reconciliations – PPNR, Adjusted, PPNR/Weighted Avg. CS
Dollars in thousands, except for per share data 20 NON - GAAP RECONCILIATIONS – PPNR, ADJUSTED, PPNR/WEIGHTED AVG. CS 2019 2020 2021 2022 Net interest income (GAAP) $ 504,275 $ 826,465 $ 1,033,175 $ 1,335,671 Plus: Noninterest income 143,565 311,140 354,252 309,247 Less: Gain on sale of securities 2
Slide 21: SouthState
S SouthState