Southstate Bank Corporation · NYSE:SSB
Southstate Bank — South State — Q4 2018 Earnings Presentation
14 slides from Southstate Bank's earnings presentation, Jan 28, 2019
Slide 1: Earnings Call 4Q2018
Earnings Call 4Q2018 Tuesday, January 29, 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: 2018 Highlights
2018 Highlights *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses. 3 3Q18 4Q18 2018 GAAP Net Income EPS Return on Average Assets Return on Average Tangible Equity $47.1 $1.28 1.28% 15.29% $49.0 $1.35 1.33%
Slide 4: Net Loan Growth
Net Loan Growth $3,333 $11,018 $10,623 ($1,993) 4Q17 Runoff / Amortization Production 4Q18 4 Dollars in Millions $2,388 $945 Unfunded
Slide 5: Net Interest Margin
Net Interest Margin $140.0 $126.4 4.50% $120.0 $100.0 4.18% 4.00% $80.0 $60.0 3.50% $40.0 4Q17 1Q18 2Q18 3Q18 4Q18 Net Interest Margin Net Interest Income 5 In Millions $129.0$129.6$128.3 $112.3 4.22% 4.14% 4.04% 3.98%
Slide 6: Loan Characteristics
Loan Characteristics 4Q18 Matures or Re-prices Floaters $2,451 23% Fixed $6,006 55% Hybrid ARMs $2,119 19% Overall Weighted Average Life of 3 - 4 Years Adjustable $370 3% 6 Dollars in Millions <1 year 30% 1 - 5 years 34 5+ years 36
Slide 7: Average Interest Earning Assets
Average Interest Earning Assets 4Q 2018 7 Quarterly Averages Assets % of Earning 3Q 2018 Assets % of Earning Assets Net Change Short-Term Investments 1.8%$233 1.4%$173 $(60) Investment Securities 12.6%1,589 12.2%1,548 (41) Loans - Acquired 27.1%3,429 25.1%3,175 (254) Loans - NonAcquired 58.2%7,373 6
Slide 8: Accretable Yield
Accretable Yield 20% Re-cast 15% 10% 8.7% 7% 5% 1Q15 4Q15 3Q16 2Q17 1Q18 4Q18 Accretion / Total Interest Income Fourth Quarter 2018 (Yields Annualized) 8 Income Statement Contractual Interest Accretion Total Income Contractual Yield Total Yield Acquired Credit Impaired $7.8 $5.9 $13.7 5.40% 10.86% A
Slide 9: Acquired Loan Portfolio
Acquired Loan Portfolio As of December 31, 2018 (A) Represents total loan discount made up of $19.1 million credit mark ($24.8 million total non-accretable difference less $5.7 million interest portion of non-accretable difference) and a non-credit discount of $48.9 million (B) Represents cash flows
Slide 10: 4th Quarter 2018 Highlights: Noninterest Income
4th Quarter 2018 Highlights In Millions; *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses. 10 Noninterest Income 3Q 2018 4Q 2018 Net Change Fees on Deposit Accounts $ 17.8 $ 18.7 $ 0.9 Mortgage Banking 2.8
Slide 11: Efficiency Ratio
Efficiency Ratio 68.0% 66.7% 65.6% 4Q17 1Q18 2Q18 3Q18 4Q18 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. 11 56.3% 60.0% 62.3% 57.3% 59.5%59.4%
Slide 12: 4th Quarter 2018 Highlights: Noninterest Expense
4th Quarter 2018 Highlights In Millions; *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses. 12 Noninterest Expense 3Q 2018 4Q 2018 Net Change Salaries and Benefits 57.9 57.7 (0.2) Information services expen
Slide 13: Earnings Per Diluted Share
Earnings Per Diluted Share $5.50 $4.18 $4.11 $1.18 2014 2015 2016 2017 4Q18 YTD EPS Adjusted* EPS (Non-GAAP) *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses, and deferred tax asset revaluation. 13 $4.85$4
Slide 14: Tangible Book Value
Tangible Book Value $38.00 $36.00 $34.00 $32.00 4Q17 1Q18 2Q18 3Q18 4Q18 14 $36.30 $35.37 $34.64 $34.05 $33.61