Southstate Bank Corporation · NYSE:SSB
Southstate Bank — Shareholder Meeting (April 2022)
20 slides from Southstate Bank's shareholder meeting presentation, Apr 27, 2022
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ MeetingWednesday, April 27, 2022 Exhibit 99.1
Slide 2: Disclaimer
DISCLAIMER2Statementsincludedinthiscommunication,whicharenothistoricalinnatureareintendedtobe,andareherebyidentifiedas,forward-lookingstatementsforpurposesofthesafeharborprovidedbySection27AoftheSecuritiesActof1933andSection21EoftheSecuritiesExchangeActof1934.Forward-lookingstatementsarebasedon,amon
Slide 3: SouthState Corporation Overview of Franchise
$35Billion in deposits $24Billion in loans $42Billion in assets $5.7Billion market cap(1)FinancialmetricsasofDecember31,2021;marketcapasofJanuary21,2022;AtlanticCapitalBancshares,Inc.(“ACBI”)mergerexcludedSouthState CorporationOverview of Franchise(1)3 (281) 7Greenwich Excellence Awards 2021 #1 in F
Slide 4: Core Values and Guiding Principles
Local MarketLeadershipOur 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-TermHorizonWe think and act like owners and measure success over entire economic cycles. We prioritize soundness before
Slide 5: Unprecedented Fed Response to COVID - $5T Increase in Years
UNPRECEDENTED FED RESPONSE TO COVID –$5T INCREASE IN 2 YEARS5 From the Fed’s founding in 1913, it took 95 years to grow its balance sheet to $1 trillion, reaching that level in 2008. During the two-year period in 2020 and 2021 related to COVID response, the Fed grew its balance sheet by another $5 t
Slide 6: Fed Response Leads to Significant Deposit Growth
FED RESPONSE LEADS TO SIGNIFICANT DEPOSIT GROWTH6 $25.4B$30.7B$35.1B $- $50,000,000.0B $100,000,000.0B $150,000,000.0B $200,000,000.0B $250,000,000.0B $300,000,000.0B $350,000,000.0B $20 $25 $30 $35 $402019*20202021$ in billionsDeposits up nearly $10 billion since pandemic*Thecombinedhistoricalinfor
Slide 7: Pandemic Accelerates Population Migration to the South
7 Source: U.S. Census BureauPANDEMIC ACCELERATES POPULATION MIGRATION TO THE SOUTH
Slide 8: Decade of Housing Undersupply Provides Economic Tailwind
DECADE OF HOUSING UNDERSUPPLY PROVIDES ECONOMIC TAILWIND8 Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development 1.5 million annualized pace is the long-run equilibrium needed to meet long-term demand and shrink the existing deficit of 3.8 million units
Slide 9: 2021 Loan Production Higher Than Pre-Pandemic Levels
2021 LOAN PRODUCTION HIGHER THAN PRE-PANDEMIC LEVELS(1) (1)ExcludesloansheldforsaleandPPP;loanproductionindicatescommittedbalancetotal*Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheappli
Slide 10: Asset Quality Improved Despite COVID Recession
$22.1 $23.4 $281.1 ($152.4)-$200-$150-$100-$50$0$50$100$150$200$250$3002018*2019*2020*2021$ in millionsProvision (Recovery) for Credit LossesASSET QUALITY IMPROVED DESPITE COVID RECESSION *Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthere
Slide 11: Adjusted Earnings Per Share, Diluted
ADJUSTED EARNINGS PER SHARE, DILUTED11 $4.85$5.50$5.63$5.12$7.58 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.0020172018201920202021 Adjustedfiguresaboveexcludetheimpactofsecuritiesgainsorlosses,mergerandbranchconsolidationrelatedexpense,FHLBAdvancesprepaymentpenalty,initialprovisionforcreditlossesonnon-P
Slide 12: Correspondent Banking - 2021 Revenue Increased 70% From Pre-Pandemic Levels
*Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andther
Slide 13: 2021 Mortgage Production Increased 71% From Pre-Pandemic Levels
* The combined historical information referred to in this presentation as the “Combined Business Basis” presented is basedonthe reported GAAP results of the Company and CenterState for the applicable periods without adjustments and the information included in this release has not been prepared in ac
Slide 14: Leading Southeast Consolidator Approaching $50B Asset Size
Note: shows all branch, partial, and whole bank acquisitions by CenterState, South State, or one of their acquisition targetssince 1/1/09Source: S&P Global Market IntelligenceAssets and label position as of announcement; numbers in bubbles denote assets acquired(1)Denotes direct acquisition for Cent
Slide 15: M&A Accelerates Transition From Bricks to Clicks
M&A ACCELERATES TRANSITION FROM “BRICKS” TO “CLICKS” 85 BranchesAverage Size $40M 420 Branches Acquired Plus12 DeNovo Branches 236 Branches Consolidated or Sold 281 BranchesAverage Size $125M ~213% growth in deposits per branch 854322362812009 …..……………..………..……....…………………………….. 202115
Slide 16: Investments in Technology to Transform the Customer Experience
INVESTMENTS IN TECHNOLOGY TO TRANSFORM THE CUSTOMER EXPERIENCE162020-2022 Foundation System Conversion CompleteTech Stack with Best-in-Class SystemsTalent retained and in place for next phaseFutureStrategic Talent AddsEfficiency, Capacity, AutomationData AnalyticsMoney MovementDigital First *Mobi
Slide 17: Investment Thesis
INVESTMENT THESIS17 High growth marketsScale and digital evolution to compete with the largest banksLow-cost relationship deposits valuable in rising rate environmentEntrepreneurial ownership culture
Slide 18: Appendix
Appendix Ga
Slide 19: Non-GAAP Reconciliations - Adjusted Net Income & Adjusted EPS
NON-GAAP RECONCILIATIONS –ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (“EPS”) Dollarsinthousands,exceptforpersharedata19 Adjusted Net Income20172018201920202021Net income (GAAP)87,554$ 178,871$ 186,483$ 120,632$ 475,543$ Plus:Securities gains, net of tax(445) 520 (2,173) (41) (81) PCL - NonPCD
Slide 20: SouthState
S SouthState