Southstate Bank Corporation · NYSE:SSB
Southstate Bank — South State — Investor Presentation (September 2014)
47 slides from Southstate Bank's investor presentation, Sep 17, 2014
Slide 1: Investor Presentation Second Quarter 2014
Investor Presentation Second Quarter 2014
Slide 2: Forward Looking Statements and Non GAAP Measures
Forward Looking Statements and Non GAAP Measures 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 Se
Slide 3: South State Corporation: Largest Publicly Traded Bank Holding Company in South Carolina
South State Corporation: SSB Assets - $8.0 Billion Largest Publicly Traded Bank Holding Company Headquartered in South Carolina Greenville SOUTH CAROLINA GEORGIA Charlotte Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Athens Gainesville Georgetown Charleston Loans - $5.7 Billion
Slide 4: Highlights of South State Corporation
Fortress Balance Sheet Building Tangible Book Value per Share Quality Loan and Deposit Relationships Organic Revenue and Profit Growth Consistent Organic Growth Large and Low Cost Deposit Base Strategic Expansion Focus on Integration and Execution of First Financial Merger through 2014 2Q 2014 Earni
Slide 5: How We Operate the Company
How We Operate the Company Leadership SOUTH STATE CORPORATION
Slide 6: Market Performance Since 2009
Market Performance Since 2009 See endnotes (3) 154.3% 19.2% 181.2% (39.4%)
Slide 7: Largest South Carolina Bank Merger
Largest South Carolina Bank Merger
Slide 8: Merger Update
Merger Update Branch Consolidation – 19 in total 10 branches in 1st Quarter 2 branches in late 2nd Quarter 7 branches during conversion Cost Saves ~ 30 % by end of 2014 One-Time Merger Related Expenses ~ $30 million (after-tax) Double Digit EPS Accretive (excluding one-time merger costs) in the firs
Slide 9: Five to One
Five to One , NCD WOH he, INGH ezgms TENG" gnomes aaa? SOUTH STATE BANK o sera vrs era SOUTH STATE CORPORATION
Slide 10: Interest Earning Assets
Interest Earning Assets Assets 03/31/2014 06/30/2014 Net Change Short-Term Investments $ 412.9 $ 410.7 $ (2.2) Investment Securities 814.5 816.6 2.1 Loans - Acquired 2,626.0 2,494.9 (131.1) Loans - Non-Acquired 2,980.0 3,174.6 194.6 Total Loans $ 5,606.0 $ 5,669.5 $ 63.5 Loans Held for Sale 57.2 56.
Slide 11: South Carolina #5 Market Share
South Carolina #5 Market Share See endnotes (4) Rank Institution Deposits ($mm) Market Share (%) Branches 1 Wells Fargo Bank NA 13,308 19.43 146 2 Bank of America NA 9,067 13.24 102 3 Branch Banking and Trust Co. 7,446 10.87 116 4 First Citizens Bank and Trust Co. Inc. 6,387 9.33 165 South State Ban
Slide 12: S$ SOUTH STATE
S$ SOUTH STATE CORPORATION
Slide 13: Credit Quality
Credit Quality See endnotes (5)
Slide 14: Capital
Capital 16.11% 9 14.80% 14.35% 15.00% 3.8% 12.9% 12.00% 9.91% 8.79% 8.9% 00% 8.29% eB 7.64% 29) 6.00% 3.00% 0.00% TangibleCommon _Leverage Ratio Tier1Capital Total Risk-Based Equity/Assets Ratio Capital Ratio = South State Corporation KRX Median = Carolina Median $ SourH SraTE CorPoRA‘
Slide 15: S$ SourtH STATE
S$ SourtH STATE CORPORATION
Slide 16: Operating Earnings Per Share
Operating Earnings Per Share Savannah Bancorp Closing: December 13, 2012 Conversion: February 2013 First Financial Holdings Closing: July 26, 2013 Conversion: July 19, 2014
Slide 17: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power See endnotes (2)
Slide 18: Net Interest Margin
Net Interest Margin 5.00% 4.75% 4.50% 4.25% 4.00% 99% . 4Q 2013 1Q 2014 ‘= NIM including Amortization of Indemnification Asset 4-75% 2Q 2014 m Net Interest Margin SOUTH STATE CORPORATI
Slide 19: Efficiency Ratio-QTD
Efficiency Ratio-QTD See endnotes (6)
Slide 20: Common Stock Dividends
Common Stock Dividends See endnotes (7)
Slide 21: S$ SOUTH STATE
S$ SOUTH STATE CORPORATION
Slide 22: Loan Portfolio Mix
Loan Portfolio Mix In Millions $2,617 $2,841 $3,613 $5,679 $5,670 See endnotes (8)
Slide 23: Core and Total Deposit Growth
Core and Total Deposit Growth Core Deposit Growth Total Deposit Growth 24.9% 5-YR CAGR (2009 – 2013) 37.6% 5-YR CAGR (2009 – 2013) See endnotes (9)
Slide 24: Wealth Management
Wealth Management Solid Foundation 800+ Relationships 18,000+ Retail Investment A/C 60+ Team members Trust conversion complete Investment Services conversion completed 2Q14 Focus Drive organic sales Leverage our banking partners Seek operational efficiencies Streamline department segregation and int
Slide 25: Mortgage
Mortgage Solid Foundation Mortgage Market Share - #3 in SC Retail Mortgage: 69 originators Wholesale Mortgage: Focus in SC, NC, GA & southeast VA markets Portfolio Servicing: $3.5 Billion Sell Direct: Capital Markets model and deal directly with agencies Focus Streamline mortgage channels into one o
Slide 26: S$ SOUTH STATE
S$ SOUTH STATE CORPORATION
Slide 27: Index: Supplemental Information
Index Supplemental Information Branch Consolidations 29 Loan Portfolio Mix 34 Investment Portfolio35 Fee Income by Type36 Market Demographics37 Analyst Recommendations44
Slide 28: Our Company with Branch Consolidations
Our Company with Branch Consolidations South State Branch Consolidations South State Branches GEORGIA Charlotte Wilmington Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Athens Gainesville Georgetown Charleston NORTH CAROLINA SOUTH CAROLINA Greenville
Slide 29: Market Consolidations
Market Consolidations Proximity to nearest Branch Charleston 4 < 2.5 miles Florence 3 < 2.0 miles Upstate 3 < 3.5 miles Hilton Head 3 < 3.0 miles Grand Strand (Myrtle Beach, Murrels Inlet, Georgetown) 5 < 3.0 miles Wilmington-Southport 1 39.8 miles Summary of Branch Consolidation Branch consolidatio
Slide 30: Branch Consolidation Detail
Summerville 1.29 miles 1.89 miles Open Branch Closed Branch 2.27 miles 2.06 miles Western Charleston Open Branch Closed Branch Mt. Pleasant 1.11 miles 1.36 miles Open Branch Closed Branch 1.05 miles Moncks Corner Open Branch Closed Branch Branch Consolidation Detail
Slide 31: Branch Consolidation Detail
Branch Consolidation Detail Hilton Head Open Branch Closed Branch Greenville Open Branch Closed Branch Florence Open Branch Closed Branch
Slide 32: Branch Consolidation Detail
Branch Consolidation Detail 1.13 miles Georgetown Open Branch Closed Branch 2.12 miles 1.90 miles Myrtle Beach Open Branch Closed Branch 2.90 miles 1.66 miles Murrells Inlet Open Branch Closed Branch North Myrtle Beach 0.38 miles Open Branch Closed Branch
Slide 33: Loan Portfolio Mix
Loan Portfolio Mix 100% 60% 37% 28% 20% 26% 0% Non Acquired Acquired Covered Acquired Non- Total Covered Construction / Land =Comml NonOwnerOce @Commil Owner Oce mOther Commercial » Consumer Real Estate m Other Consumer SOUTH STATE CORPORA:
Slide 34: Bank Investment Portfolio Mix
Bank Investment Portfolio Mix Bank Fixed Income Portfolio (AFS & HTM) Tax Equivalent Yield Weighted Average Life Modified Duration Total Carrying Value 2.78% 3.78 3.43 $ 802,457 See endnotes (11)
Slide 35: Revenue Diversification
Revenue Diversification 2Q2014 Fee Income: $30 Million See endnotes (12)
Slide 36: Market Demographics
Walterboro Hilton Head Cornelia See endnotes (13)
Slide 37: South Carolina Market Share
South Carolina Market Share Columbia MSA 1 Wells Fargo 30.27 2 Bank of America 24.37 3 BB&T 13.36 4 First Citizens 9.77 8 South State Bank 2.32 Total $15.7 Billion 100 % Ranked # 1 Berkeley County Georgetown MSA 1 Wells Fargo 16.54 2 South State Bank 15.72 3 Toronto-Dominion Bank 15.63 4 BB&T 11.66
Slide 38: South Carolina Market Share
South Carolina Market Share Hilton Head MSA 1 Wells Fargo 17.76 2 South State Bank 16.64 3 Bank of America 9.46 4 BB&T 9.45 5 CoastalSouth Bancshares 8.98 Total $3.4 Billion 100 % Orangeburg MSA 1 South State Bank 39.34 2 First Citizens 24.25 3 Bank of America 9.95 4 FMB of S.C. Bancshares 8.92 5 BB
Slide 39: Georgia Market Share
Georgia Market Share Athens-Gainesville MSA 1 Wells Fargo 27.76 2 SunTrust Banks 24.80 3 Synovus Financial Corp. 21.56 4 BB&T 21.80 14 South State Bank 3.85 Total $5.6 Billion 100 % Savannah MSA 1 Wells Fargo 21.70 2 SunTrust Banks 19.53 3 Bank of America 12.85 4 South State Bank 11.06 5 Ameris Bank
Slide 40: North Carolina Market Share
North Carolina Market Share Wilmington MSA 1 BB&T 27.17 2 Wells Fargo 16.71 3 First Citizens BancShares 11.98 4 Bank of America 8.15 9 South State Bank 3.75 Total $5.9 Billion 100 % Charlotte MSA 1 Bank of America 76.95 2 Wells Fargo 14.37 3 BB&T 2.57 4 Fifth Third 0.89 11 South State Bank 0.23 Tota
Slide 41: Unemployment Data
Unemployment Data 14.0 12.0 10.0 6.0 4.0 2.0 es s ry so» > s e e e oa e e ee & ° oe 74% 64% 62% 53% ‘National © —North Carolina © —-South Carolina © —Georgia SOUTH STATE CORPORA:
Slide 42: South Carolina Real Estate Markets
South Carolina Real Estate Markets Number of Residential Homes, Condos & Villas Sold Median Price of Residential Homes (in Thousands) Average Days on the Market (DOM) Jul-13 YTD Jul-14 YTD % Change Jul-13 YTD Jul-14 YTD % Change Jul-13 YTD Jul-14 YTD % Change Beaufort 770 854 10.9% $183 $190 3.8% 19
Slide 43: Demographic Highlights
Demographic Highlights See endnotes (16)
Slide 44: Median Household Income
Median Household Income See endnotes (17)
Slide 45: Analyst Recommendations
Analyst Recommendations Analyst Second Quarter 2014 Recommendation BB&T Capital Markets BUY FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM Raymond James STRONG BUY Sterne Agee BUY SunTrust Robinson Humphrey BUY Wunderlich Securities BUY
Slide 46: 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
Slide 47: Endnotes
Endnotes Excludes Merger Expenses Excludes Merger & OREO / Loan-related expenses Source: SNL Financial. Pricing data as of 9/03/2014. KRX is a composition of 50 regionally diversified mid and small-cap banking institutions in the U.S and is calculated using and equal-weighted method Carolina Peers i