Southstate Bank Corporation · NYSE:SSB
Southstate Bank — South State — Q1 2019 Earnings Presentation
12 slides from Southstate Bank's earnings presentation, Apr 30, 2019
Slide 1: Earnings Call 1Q2019
Earnings Call 1Q2019 Tuesday, April 30,2019
Slide 2: Forward Looking Statements
Forward Looking Statements 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 Securitie
Slide 3: Longer-term Targets
Longer‐term Targets 3 Loan Growth 5 - 10% Expense Growth 0 - 3% Efficiency Ratio 56 - 57% Capital TCE / TA 8 – 9% ROTCE 16 - 18% *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses. New Dividend Payout Range
Slide 4: 1Q 2019 Highlights
1Q 2019 Highlights GAAP Adjusted* Net Income $44.4 million $44.8 million EPS $1.25 $1.26 Return on Average Assets 1.21% 1.23% Return on Average Tangible Equity 14.66% 14.80% Efficiency Ratio 63.2% 62.5% *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merge
Slide 5: Net Interest Margin
Net Interest Margin 5 In Millions 4.22% 4.14% 4.04% 3.98% 3.92% $129.0 $129.6 $128.3 $126.4 $123.3 $60.0 $80.0 $100.0 $120.0 $140.0 3.0% 4.0% 5.0% 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Net Interest Margin Net Interest Income
Slide 6: Interest Earning Assets
Interest Earning Assets 6 In Millions Assets % of Earning Assets Average Balance % of Earning Assets Average Balance Period End Balance Timing Gap PE & Avg Short-Term Investments 1.4% 173$ 1.9% 249$ 724$ 475$ Investment Securities 12.2% 1,548 11.9% 1,515 1,507 (8) Loans - Acquired, net of Acquired A
Slide 7: Accretable Yield
Accretable Yield 7 18.3% 12.5% 9.4% 10.3% 8.7% 6.7% 6.4% 5% 10% 15% 20% 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 Accretion / Total Interest Income SBFC PSTB SBFC Re-cast PSTB Re-cast 1Q 2019 (Yields Annualized) Income Statement Contractual Interest Accretion Total Income Contractual Yield Total
Slide 8: 1st Quarter 2019 Highlights: Noninterest Income
1st Quarter 2019 Highlights 8 In Millions; *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses. Noninterest Income 1Q 2018 1Q 2019 Net Change Fees on Deposit Accounts 22.5$ 17.8$ (4.7)$ Mortgage Banking 4.9 2
Slide 9: 1st Quarter 2019 Highlights: Noninterest Expense
1st Quarter 2019 Highlights 9 In Millions; *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses. Noninterest Expense 1Q 2018 1Q 2019 Net Change Salaries and Benefits 62.4 58.4 (4.0) Information services expens
Slide 10: Efficiency Ratio
Efficiency Ratio 10 66.7% 65.6% 62.3% 59.4% 63.2% 60.0% 57.3% 59.5% 62.5% 1Q18 2Q18 3Q18 4Q18 1Q19 Efficiency Ratio Adjusted* Efficiency Ratio *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, and securities gains or losses.
Slide 11: Tangible Book Value
Tangible Book Value 11 $34.05 $34.64 $35.37 $36.30 $37.15 $32.00 $34.00 $36.00 $38.00 1Q18 2Q18 3Q18 4Q18 1Q19
Slide 12: Operating Leverage, Balance Sheet Growth, Expense Management, Capital Planning
Operating Leverage 12 Balance Sheet Growth Expense Management Capital Planning Efficiencies • Increased on-hand liquidity by over $600 million • $350 million in new longer term borrowings • $272 million increase in deposits • Fund future loan / security growth • Savings of $13 million (pre-tax) iden