Slide 1: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Statements included in this report 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 21E of the Securities Exchange Act of 1934.
Slide 2: South State Corporation: SSB
South State Corporation: SSB Assets - $8.6 Billion Loans - $6.0 Billion Deposits - $7.1 Billion
Slide 3: Market Performance Since 2009
Market Performance Since 2009 188.5% 159.8% 33.1% 12/31/09 12/31/10 12/31/11 12/31/32 Biss 12/31/14 12/31/15 SSB Total Retum ——SSB_ ——SNLSoutheast U'S. Bank ——KRX SOUTH STATE
Slide 4: 4th Quarter 2015 Highlights
Operating Earnings of $27.0 million $1.11 per diluted share Operating Return on Average Assets 1.25% Operating Return on Average Tangible Equity 16.82% Cash dividend of $0.28 per common share Net Income of $25.5 million, $1.05 per diluted share 4th Quarter 2015 Highlights
Slide 5: 4th Quarter 2015 Highlights
4th Quarter 2015 Highlights Net Loan Growth – 9% Annualized Strong Non-Acquired Loan Growth – $226 million, 22.5% annualized Outpaced Acquired run-off by $133 million Non-Interest Bearing DDA Growth Increased $49 million – 10% annualized Continued Asset Quality improvement NPA’s/ Assets – 0.63% Non-
Slide 6: 4th Quarter 2015 Highlights
4th Quarter 2015 Highlights Margin down 20 bp to 4.32% Non Interest Income (operating): $29.7 million vs. $29.8 million linked quarter Fees on Deposit Accounts $21.1 million Mortgage Banking 3.2 Wealth Management 4.6 Amortization of (1.5) FDIC Indemnification Asset
Slide 7: Net Interest Margin
Net Interest Margin See Endnotes (2) Millions $83.0
Slide 8: Average Interest Earning Assets
Average Interest Earning Assets Assets (in millions) 09/30/ 2015 12/31/2015 Net Change Short-Term Investments $639 $675 $36 Investment Securities 863 944 81 Loans - Acquired 1,925 1,825 (100) Loans - Non-Acquired 3,881 4,080 199 Total Loans $5,806 $5,905 $99 Loans Held for Sale 57 40 (17) Total Inte
Slide 9: Branch Consolidation Initiative
2nd and 3rd Quarter implementation 11 branch locations 9 consolidations / 2 conversions to drive-thru One-time Costs of $3 million Cost savings ~ $3 million (annualized) by 2017 Branch Consolidation Initiative
Slide 10: Total Branches
Total Branches Total branches 12/31/2009 48 Acquired 135 Consolidated or sold (66) Total projected branches 12/31/2016 117 Average deposits per branch (in millions) Pro-forma for branch consolidations and sales 6/30/2009 $46.0 6/30/2015 65.5 See Endnotes (3)
Slide 11: Total Branches
Total Branches Total branches 12/31/2009 48 Acquired 135 Consolidated or sold (66) Total projected branches 12/31/2016 117 Average deposits per branch (in millions) Pro-forma for branch consolidations and sales 6/30/2009 $46.0 6/30/2015 65.5
Slide 12: Operating Earnings Per Share
Operating Earnings Per Share See Endnotes (5) $
Slide 13: Capital Adequacy
Capital Adequacy See endnotes (6)
Slide 14: Common Stock Dividends
Common Stock Dividends See endnotes (7)
Slide 15: Loan Portfolio Mix
Loan Portfolio Mix In Millions $2,865 $3,631 $5,698 $5,723 See endnotes (8) $6,008 $
Slide 16: Total Loans by Type
Total Loans by Type Linked Quarter Net Growth Comml Nonowner Occ 50% C & I 30 Const & Land Dev 23 Total Loans $6,008 In millions
Slide 17: Total Loans by Market
Total Loans by Market Linked Quarter Net Growth Upstate SC 39% Charlotte 17 North Georgia 12 Inland SC 1 Coastal 0
Slide 18: Wealth Management
Wealth Management 800+ Relationships 19,000+ Retail investment accounts 80+ Team members See endnotes (9) $3,940 $3,828 $3,406 $1,620 $895 2015 2014 2013 2012 2011 Assets Under Management or Care in millions $20,117 $18,344 $12,661 $6,360 $5,464 2015 2014 2013 2012 2011 Total Revenue in thousands
Slide 19: Mortgage: Solid Foundation
Solid Foundation Mortgage Market Share - #3 in South Carolina Retail Mortgage: 66 originators (10 new in 2015) Exited Wholesale Mortgage on October 1st Servicing Portfolio: $2.6 Billion Mortgage See endnotes (10) $1,379 $1,195 $1,310 $2,198 $745 2015 2014 2013 2012 2011 Mortgage Production in millio
Slide 20: Mortgage
Mortgage Mortgage Production Mortgage Banking Non-interest Income in millions in thousands 2011 SE s745 2011 EE 627 2012 TS s2:05 2012 EE s2545 2013 2013 EEE s0,149 2014 2014 EE 510.170 2015 ( s.379 2015 | s21,761 Solid Foundation * Mortgage Market Share - #3 in South Carolina * Retail Mortgage: 66
Slide 21: Loan Portfolio Mix - 4Q 2015
Loan Portfolio Mix - 4Q 2015 $1,787 $6,008 In millions 13%
Slide 22: Loan Portfolio Mix Trend
Loan Portfolio Mix Trend In millions $2,865 $3,631 $5,698 $5,723 $6,008
Slide 23: Transaction Deposit Mix
Transaction Deposit Mix Online Banking ~ 205,000 users (14% increase) Mobile App users ~ 95,000 users (15% increase) Mobile Deposits (monthly) ~ 25,000 transactions Number of Accounts See endnotes (11) 111,105 accounts Interest Bearing $1,710 Non - Interest Bearing $1,976 Account Balance in Millions
Slide 24: Investment Portfolio Mix
Investment Portfolio Mix See endnotes (12) Bank Fixed Income Portfolio (AFS & HTM) Tax Equivalent Yield 2.51% Weighted Average Life 3.59 Modified Duration 3.29 Total Carrying Value $1.0 Billion
Slide 25: Revenue Diversification
Revenue Diversification See endnotes (13) 2011 2012 2013 2014 2015 76% 74% 77% 74% 72% 24% 26% 23% 26% 28% Net Interest Income Non Interest Income
Slide 26: M&A History and Asset Growth
M&A History and Asset Growth 2011 $3.9 Bn 2014 $7.9 Bn Community Bank & Trust $1.0 Bn Jan 29, 2010 Habersham Bank $360 MM Feb 18, 2011 BankMeridian, National Association $234 MM Jul 29, 2011 First Financial Holdings, Inc. $3.2 Bn July 26, 2013 2010 2013 Peoples Bancorporation $546 MM Apr 24,2012 Sav
Slide 27: Market Share
Market Share See endnotes (14)
Slide 28: South Carolina Market Share
1 Wells Fargo 19.9% 2 Bank of America 4.7 3 BB&T 10.3 4 First Citizens 9.0 5 South State Bank 7.3 6 TD Bank 4.9 7 Synovus 3.9 8 SunTrust 3.3 9 BNC 1.5 10 Regions 1.4 Total $75.1 Billion 100% See endnotes (14) South Carolina Market Share # 1 in Tire Manufacturing Successful implementation of Inland P
Slide 29: South Carolina Market Share
South Carolina Market Share Charleston MSA Columbia MSA Greenville MSA 1 Wells Fargo 24.8% 2 Bank of America 14.4 3 South State Bank 13.4 4 First Citizens 6.8 5 Synovus 6.2 6 BB&T 5.8 7 BNC 5.5 8 Carolina Financial 4.6 9 SunTrust 3.0 10 Bank of SC 2.9 Total $11.3 Billion 100% 1 Bank of America 28.9%
Slide 30: South Carolina Market Share
South Carolina Market Share Hilton Head MSA Orangeburg MSA Georgetown MSA 1 Wells Fargo 17.4% 2 South State Bank 15.4 3 Bank of America 12.7 4 BB&T 8.4 5 CoastalSouth 8.2 Total $4.0 Billion 100% 1 South State Bank 49.2% 2 First Citizens 25.1 3 FMB of SC 9.0 4 BB&T 7.0 5 First National 5.2 Total $935
Slide 31: Georgia Market Share
Georgia Market Share Savannah MSA See endnotes (14) 1 SunTrust 27.1% 2 Wells Fargo 18.1 3 Bank of America 14.8 4 South State Bank 8.5 5 BB&T 6.6 6 Ameris Bank 5.8 7 FCB Financial 4.7 8 Synovus 3.7 9 Renasant 2.1 10 United Community 1.7 Total $6.5 Billion 100% 1 Wells Fargo 12.9% 2 Synovus 12.4 3 Sun
Slide 32: North Carolina Market Share
North Carolina Market Share Charlotte MSA Wilmington MSA 1 Wells Fargo 19.8% 2 BB&T 15.1 3 Live Oak Bank 14.6 4 First Citizens 12.6 5 Bank of America 8.8 6 Yadkin 7.1 7 PNC 5.7 8 SunTrust 4.1 9 TD Bank 3.2 10 South State Bank 2.7 Total $5.1 Billion 100% See endnotes (14) 1 Bank of America 73.7% 2 We
Slide 33: Migration Trends by State
Migration Trends by State See endnotes (15) 10.8 12.5 13.0 15.7 16.5 South Carolina Colorado Nevada North Dakota Florida Highest rates of net migration per 1,000 residents
Slide 34: Demographic Highlights
Ranks #10 Demographic Highlights See endnotes (16) Ranks #14 Ranks #15 3.69% 4.84% 4.93% 5.40% US GA NC SC State Population Growth Projected Change 2016 - 2021 3.69% 5.25% 5.70% 6.91% 6.91% 7.01% 8.47% 8.47% 9.50% US Columbia Greenville Savannah Wilmington Charlotte Hilton Head Charleston Myrtle Bea
Slide 35: Economic Highlights
Economic Highlights Wilmington SOUTH CAROLINA Georgetown Myrtle Beach Charleston Savannah Hilton Head Island Atlanta Athens Gainesville Greenville Columbia Florence GEORGIA NORTH CAROLINA Population Growth Projected Change 2016-2021 5.66% 3.69%
Slide 36: Unemployment Data
Unemployment Data See endnotes (17) 5.6% 5.5% 5.5% 5.0% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 National North Carolina South Carolina Georgia
Slide 37: Average Household Income
Average Household Income See endnotes (18)
Slide 38: Analyst Coverage
Analyst Coverage FIG Partners Keefe, Bruyette & Woods NAB Research LLC Piper Jaffray Sandler O’Neill Stephens SunTrust Robinson Humphrey
Slide 39: Endnotes
Endnotes Source: SNL Financial. Pricing performance shown from 12/31/09 -1/22/16. SNL Southeast U.S. Bank index includes all major exchange traded banks headquartered in AL, AR, FL, GA, MS, NC, SC, TN, VA, and WV. Total return includes distribution of dividends. Income reduced by amortization of Ind
Slide 40: Investor Contacts
Investor Contacts 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.southstatebank.com Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Financial Officer / Chief Operating Officer James C. Mabry IV Executive Vice President Investor
Slide 41: Investor Contacts
Investor Contacts Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Financial Officer / Chief Operating Officer James C. Mabry IV Executive Vice President Investor Relations and Mergers & Acquisitions 520 Ger Street SOUTH ST TE. | Columbia, South Ca
Slide 42: South State Corporation
NJ $ SouTH STaTE CORPORATION “eee @\Columbia_ © Bapentée Manta ys