Slide 1: Investor Presentation Third Quarter 2014
Investor Presentation Third 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: SSB
South State Corporation: SSB Assets - $7.9 Billion Largest Bank Holding Company Headquartered in South Carolina Loans - $5.7 Billion Deposits - $6.5 Billion GEORGIA Charlotte Wilmington Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Athens Gainesville Georgetown Charleston Greenv
Slide 4: Largest South Carolina Bank Merger Five to One
Largest South Carolina Bank Merger Five to One
Slide 5: Market Performance Since 2009
Market Performance Since 2009 See endnotes (3) 154.6% 26.7% 181.5% (3.9%)
Slide 6: How We Operate the Company
How We Operate the Company Leadership SOUTH STATE CORPORA:
Slide 7: 3rd Quarter Highlights
Record Operating Earnings $24.2 million $1.00 per diluted share Operating ROAA 1.21% Operating Return on Average Tangible Common Equity 17.23% Cash dividend of $0.22 per common share Merger / Branding Cost: $6.8 million Net Income of $19.3 million, $0.80 per diluted share 3rd Quarter Highlights See
Slide 8: Interest Earning Assets
Interest Earning Assets Period-end Balance, In Millions Assets 06/30/2014 09/30/2014 Net Change Short-Term Investments $ 410.7 $ 360.5 $ (50.2) Investment Securities 816.7 826.0 9.3 Loans - Acquired 2,494.9 2,357.8 (137.1) Loans - Non-Acquired 3,174.6 3,304.7 130.1 Total Loans $ 5,669.5 $ 5,662.5 $
Slide 9: South State Corporation
S$ SOUTH STATE CORPORATION
Slide 10: Credit Quality
Credit Quality See endnotes (5)
Slide 11: Capital
Capital See endnotes (5) *9/30/2014 Estimates * * *
Slide 12: South State Corporation
S$ SourtH STATE CORPORATION
Slide 13: 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 See endnotes (1)
Slide 14: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power See endnotes (2) In Millions
Slide 15: Net Interest Margin
Net Interest Margin See endnotes (4)
Slide 16: Efficiency Ratio
Efficiency Ratio See endnotes (6)
Slide 17: Common Stock Dividends
Common Stock Dividends See endnotes (7) $0.82
Slide 18: South State Corporation
S$ SOUTH STATE CORPORATION
Slide 19: Loan Portfolio Mix
Loan Portfolio Mix In Millions $2,617 $2,841 $3,613 $5,687 $5,663 See endnotes (8)
Slide 20: 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) In Millions In Millions
Slide 21: Wealth Management
Wealth Management Solid Foundation 850+ Relationships 19,000+ Retail Investment A/C 85+ Team members Trust and Investment Services conversion complete Focus Drive organic sales Leverage our banking partners Seek operational efficiencies Active risk mitigation See endnotes (10) YTD
Slide 22: Mortgage
Mortgage Solid Foundation Mortgage Market Share - #4 in SC Retail Mortgage: 64 originators Wholesale Mortgage: Focus in SC, NC, GA & southeast VA markets Portfolio Servicing: $3.6 Billion Sell Direct: Capital Markets model and deal directly with agencies Focus Streamline mortgage channels into one o
Slide 23: South State Corporation
S$ SOUTH STATE CORPORATION
Slide 24: Index Supplemental Information
Index Supplemental Information Loan Portfolio Mix 25 Investment Portfolio 26 Fee Income by Type 27 Market Demographics 28 Analyst Recommendations 37
Slide 25: Loan Portfolio Mix-3Q 2014
Loan Portfolio Mix-3Q 2014 $215 $2,151 $5,671 In Millions
Slide 26: 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 2.73% 3.74 3.40 $ 812,115 See endnotes (11)
Slide 27: Revenue Diversification 3Q2014
Revenue Diversification 3Q2014 Fee Income (12) : $30 Million See endnotes (12)
Slide 28: Hilton Head Walterboro
Hilton Head Walterboro See endnotes (13)
Slide 29: South Carolina Market Share
South Carolina Market Share Columbia MSA 1 Wells Fargo 30.6 2 Bank of America 24.8 3 BB&T 13.3 4 First Citizens 10.0 8 South State Bank 2.3 Total $16.2 Billion 100 % Ranked # 1 Berkeley County Georgetown MSA 1 Wells Fargo 16.5 2 Toronto-Dominion Bank 14.8 3 South State Bank 14.3 4 BB&T 11.8 5 Bank o
Slide 30: South Carolina Market Share
South Carolina Market Share Hilton Head MSA 1 Wells Fargo 18.2 2 South State Bank 16.5 3 Bank of America 10.2 4 CoastalSouth Bancshares 9.1 5 BB&T 7.4 Total $3.5 Billion 100 % Orangeburg MSA 1 South State Bank 38.6 2 First Citizens 25.3 3 Bank of America 10.6 4 FMB of S.C. Bancshares 8.8 5 BB&T Corp
Slide 31: Georgia Market Share
Georgia Market Share Athens-Gainesville MSA 1 Wells Fargo 14.0 2 Synovus Financial Corp 12.0 3 SunTrust Banks 11.9 4 BB&T 10.4 15 South State Bank 1.6 Total $6.2 Billion 100 % Savannah MSA 1 SunTrust Banks 22.8 2 Wells Fargo 21.5 3 Bank of America 12.5 4 South State Bank 9.6 5 Ameris Bank 7.0 Total
Slide 32: North Carolina Market Share
North Carolina Market Share Wilmington MSA 1 Wells Fargo 22.3 2 BB&T 16.4 3 First Citizens BancShares 13.8 4 Live Oak Bancshares 9.6 9 South State Bank 3.2 Total $4.4 Billion 100 % Charlotte MSA 1 Bank of America 71.8 2 Wells Fargo 18.8 3 BB&T 2.8 4 Fifth Third 1.0 11 South State Bank 0.3 Total $201
Slide 33: Unemployment Data
Unemployment Data 14.0 12.0 10.0 4.0 2.0 LOPE PEPE POROR ‘National © —North Carolina © —-South Carolina © —Georgia SOUTH STATE CORPORA:
Slide 34: 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) Sept-13 YTD Sept-14 YTD % Change Sept-13 YTD Sept-14 YTD % Change Sept-13 YTD Sept-14 YTD % Change Beaufort 994 1,106 11.3 % $183 $19
Slide 35: Demographic Highlights
Demographic Highlights See endnotes (16)
Slide 36: Median Household Income
Median Household Income See endnotes (17)
Slide 37: Analyst Recommendations
Analyst Recommendations Analyst Third Quarter 2014 Recommendation BB&T Capital Markets BUY Keefe, Bruyette & Woods OUTPERFORM Raymond James OUTPERFORM Sandler O’Neill BUY SunTrust Robinson Humphrey BUY Wunderlich Securities BUY
Slide 38: 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