Southstate Bank Corporation · NYSE:SSB
Southstate Bank — South State — Q3 2018 Earnings Presentation
11 slides from Southstate Bank's earnings presentation, Oct 22, 2018
Slide 1: 3rd Quarter 2018 Earnings Call
1 3rd Quarter 2018 Earnings Call October 23, 2018
Slide 2: Forward Looking Statements
22 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 Securi
Slide 3: 3Q 2018 Highlights
33 3Q 2018 Highlights GAAP Adjusted* Net Income $47.1 million $49.1 million EPS $1.28 $1.33 Return on Average Assets 1.28% 1.33% Return on Average Tangible Equity 15.29% 15.90% *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securi
Slide 4: Park Sterling Merger Update
44 • Lowered overall risk profile • Core-funded balance sheet • CRE as a % of RBC declined from 227% at year-end to 212% • CLD as a % of RBC declined from 91% at year-end to 76% Park Sterling Merger Update • Integration complete • Hired more talent • Achieved merger goals • Re-mix of balance sheet i
Slide 5: Net Interest Margin and Net Interest Income
55 Net Interest Margin 4.11% 4.18% 4.22% 4.14% 4.04% $100.3 $112.3 $129.0 $129.6 $128.3 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 3.50% 4.00% 4.50% 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 Net Interest Margin Net Interest Income In Millions
Slide 6: Average Interest Earning Assets
66 Average Interest Earning Assets Quarterly Averages Assets % of Earning Assets 2Q 2018 % of Earning Assets 3Q 2018 Net Change Short-Term Investments 1.6% 203$ 1.8% 233$ 30$ Investment Securities 13.1% 1,653 12.6% 1,589 (64) Loans - Acquired 29.7% 3,742 27.1% 3,429 (313) Loans - NonAcquired 55.3% 6
Slide 7: Acquired Loan Portfolio
77 Acquired Loan Portfolio Dollars in millions As of September 30, 2018 Balance Sheet UPB Discount Carrying Value Average Balance Accretable Yield / Disc Acquired Credit Impaired $589.2 ($76.6) $512.6 $533.2 $115.0 Acquired NonCredit Impaired 2,823.2 (37.1) 2,786.1 2,896.5 37.1 Total $3,412.4 ($113.
Slide 8: 3rd Quarter 2018 Highlights: Noninterest Income
88 3rd Quarter 2018 Highlights In Millions; *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, securities gains or losses. Noninterest Income 2Q 2018 3Q 2018 Net Change Fees on Deposit Accounts 22.6$ 17.8$ (4.8)$ Mortgage Banking 3.3
Slide 9: Efficiency Ratio
99 Efficiency Ratio 58.8% 68.0% 66.7% 65.6% 62.3% 57.6% 56.3% 60.0% 57.3% 59.5% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 Efficiency Ratio Adjusted* Efficiency Ratio *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, me
Slide 10: Earnings Per Diluted Share
1010 Earnings Per Diluted Share $3.08 $4.11 $4.18 $2.93 $3.52 $3.75 $4.31 $4.55 $4.85 $4.15 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2014 2015 2016 2017 3Q18 YTD EPS Adjusted* EPS (Non-GAAP) *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expense
Slide 11: Tangible Book Value
1111 Tangible Book Value $33.66 $33.61 $34.05 $34.64 $35.37 $32.00 $34.00 $36.00 3Q17 4Q17 1Q18 2Q18 3Q18