Slide 1: Cautionary Statement Regarding Forward Looking Statements
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 Section 21E of the Securities Exchange Act of 1934.
Slide 2: South State Corporation: SSB
South State Corporation: SSB Assets - $8.5 Billion Largest Bank Holding Company Headquartered in South Carolina Loans - $5.9 Billion Deposits - $7.1 Billion
Slide 3: Market Performance Since 2009
Market Performance Since 2009 See endnotes (1) 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 SSB Total Return SSB SNL Southeast U.S. Bank KRX 213.5% 183.3% 32.8% 85.4%
Slide 4: Market Performance Since 2009
Market Performance Since 2009 12/31/09 12/31/10 12/s/1 w2/sif2 w/sh3 w2/aif4 SSB Total Retum ——$SB_- ——SNL Southeast US. Bank ——KRX
Slide 5: Strategic Focus
Path to $5.00 Phase II - Efficiencies Focus on Organic Loan Growth M&A Strategy Strategic Focus
Slide 6: 3rd Quarter 2015 Highlights
Record Operating Earnings of $27.2 million $1.12 per diluted share Operating Return on Average Assets 1.29% Operating Return on Average Tangible Equity 16.92% Cash dividend of $0.26 per common share Net Income of $25.1 million, $1.04 per diluted share 3rd Quarter 2015 Highlights
Slide 7: 3rd Quarter 2015 Highlights
3rd Quarter 2015 Highlights Net Loan Growth – 6% Annualized Strong Non-Acquired Loan Growth - $206 million, 22% annualized Outpaced Acquired run-off by $87 million Non-Interest Bearing DDA Growth Increased $82 million – 18% annualized – Primarily from Branch acquisition Continued Asset Quality impro
Slide 8: 3rd Quarter 2015 Highlights
3rd Quarter 2015 Highlights Margin down 23 bp to 4.52% Non Interest Income : $ 29.8 million vs. $30.1 million linked quarter Fees on Deposit Accounts $ 19.2 Mortgage Banking $ 4.8 Wealth Management $ 5.5 Amortization of $(1.9) FDIC Indemnification Asset
Slide 9: Bank of America Branch Acquisitions
Closed August 21, 2015 Deposits $438.3 Million Loans $3.1 Fixed Assets $4.1 13 Branches/30 ATM’s 73,000 customers 6 new markets – creates relationship opportunities Modeled 15% deposits runoff vs. actual 24% Modeled $31.6 M deal value vs. actual $25.0 M 2016: Continue to expect mid-single digit EPS
Slide 10: Net Interest Margin
Net Interest Margin See endnotes (2) In Millions
Slide 11: Net Interest Margin
Net Interest Margin $81.0 81.1 5.00% $77.8 $75. 4.78% A 4.72% 4.75% 4.65% 4.63% 4.58% a 4.52% 50% 4.47% 4.50' 4.41% 4.35% 4.00% 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 est Margin SOUTH STATE $80.0 $75.0 $70.0 $65.0 $60.0 In Millions
Slide 12: Operating Earnings Per Share
Operating Earnings Per Share See endnotes (4)
Slide 13: Operating Earnings Per Share
$2.00 $1.50 $1.00 $0.50 Operating Earnings Per Share $3.75 $3.16 $3.20 $2.49 $1.05 2011 2012 2013, 2014 2015 YTD SOUTH STATE
Slide 14: Common Stock Dividends
Common Stock Dividends See endnotes (6) $0.72 $0.98
Slide 15: Loan Portfolio Mix
Loan Portfolio Mix In Millions $2,617 $2,841 $3,613 $5,687 $5,723 See endnotes (7) $5,875
Slide 16: Total Loans by Type
Total Loans by Type Linked Quarter Organic Growth Comml Nonowner Occ 62% Cons Owner Occ 36% Cons Non RE 26% Comml Owner Occ 15% C & I 13% Home Equity 11% Total Loans $5,875
Slide 17: Total Loans by Market
Total Loans by Market Linked Quarter Organic Growth Charleston 47% Georgia 44% Upstate SC 23% Inland SC 16% Charlotte 14%
Slide 18: Wealth Management
Wealth Management Solid Foundation 800+ Relationships 19,000+ Retail investment accounts 80+ Team members See endnotes (8) YTD $3,940 $3,828 $3,406 $1,620 2015 2014 2013 2012 Assets Under Management (Care) in millions $15,475 $18,344 $12,661 $6,360 3Q15 2014 2013 2012 Total Revenue in thousands
Slide 19: Mortgage
Solid Foundation Mortgage Market Share - #3 in South Carolina Retail Mortgage: 63 originators Exited Wholesale Mortgage on October 1st Portfolio Servicing: $2.5 Billion – outsourcing anticipated Q1 2016 Mortgage $1,090 $1,195 $1,310 $2,198 3Q15 2014 2013 2012 Mortgage Production in millions YTD $18,
Slide 20: Mortgage
Mortgage Mortgage Production Mortgage Banking Income 2012 $2,198 2012 2013 2013 2014 2014 TCT 3Q15 [ENNSHOSSy 3Q15 sis) YTD YrD Solid Foundation * Mortgage Market Share - #3 in South Carolina ~ Retail Mortgage: 63 originators “ Exited Wholesale Mortgage on October 1° * Portfolio Servicing: $2.5 Bill
Slide 21: Loan Portfolio Mix - 3Q 2015
Loan Portfolio Mix - 3Q 2015 $1,881 $5,875 In millions 13%
Slide 22: Core Deposit Mix
Core Deposit Mix Online Banking ~ 201,000 users Mobile Deposits (monthly) ~ 21,000 transactions Number of Accounts Interest Bearing $1,655 Non - Interest Bearing $1,927 Account Balance in Millions Interest Bearing 30% Non - Interest Bearing 70%
Slide 23: Investment Portfolio Mix
Investment Portfolio Mix See endnotes (9) Bank Fixed Income Portfolio (AFS & HTM) Tax Equivalent Yield 2.58% Weighted Average Life 3.29 Modified Duration 3.04 Total Carrying Value $893 Million
Slide 24: Revenue Diversification
Revenue Diversification See endnotes (10) 3Q14 4Q14 1Q15 2Q15 3Q15 77% 76% 75% 73% 74% 23% 24% 25% 27% 26% Net Interest Income Non Interest Income
Slide 25: M&A History and Asset Growth
M&A History and Asset Growth 2011 $3.9 bn 2014 $7.9 bn Community Bank & Trust $1.0 Bn Jan 29, 2010 Habersham Bank $360 MM Feb 18, 2011 BankMeridian, National Association $234 MM Jul 29, 2011 First Financial Holdings, Inc. $3.2 Bn July 26, 2013 2010 2013 Peoples Bancorporation $546 MM Apr 24,2012 Sav
Slide 26: Market Share
Market Share See endnotes (11)
Slide 27: South Carolina Market Share
1 Wells Fargo 19.9 2 Bank of America 14.7 3 BB&T 10.3 4 First Citizens 9.0 5 South State Bank 7.3 6 TD Bank 4.9 7 Synovus 3.9 8 SunTrust 3.3 9 Regions 1.4 10 Palmetto Bancshares 1.3 Total $75.1 Billion 100% See endnotes (11) South Carolina Market Share # 1 in Tire Manufacturing Successful implementa
Slide 28: South Carolina Market Share
South Carolina Market Share Charleston MSA Columbia MSA Greenville MSA 1 Wells Fargo 24.8 2 Bank of America 14.4 3 South State Bank 13.4 4 First Citizens 6.8 5 Synovus 6.2 6 BB&T 5.8 7 Carolina Financial 4.6 8 Southcoast Financial 3.2 9 SunTrust 3.0 10 Bank of SC 2.9 Total $11.3 Billion 100% 1 Bank
Slide 29: South Carolina Market Share
South Carolina Market Share Hilton Head MSA Orangeburg MSA Georgetown MSA 1 Wells Fargo 17.4 2 South State Bank 15.4 3 Bank of America 12.7 4 BB&T 8.4 5 CoastalSouth 8.2 Total $4.0 Billion 100% 1 South State Bank 49.2 2 First Citizens 25.1 3 FMB of SC 9.0 4 BB&T 7.0 5 First National 5.2 Total $935 m
Slide 30: Georgia Market Share
Georgia Market Share Savannah MSA See endnotes (11) 1 SunTrust 27.1 2 Wells Fargo 18.1 3 Bank of America 14.8 4 South State Bank 8.5 5 BB&T 6.6 6 Ameris Bank 5.8 7 FCB Financial 4.7 8 Synovus 3.7 9 Heritage Financial 2.1 10 United Community 1.7 Total $6.5 Billion 100% 1 Wells Fargo 12.9 2 Synovus 12
Slide 31: North Carolina Market Share
North Carolina Market Share Charlotte MSA Wilmington MSA 1 Wells Fargo 19.8 2 BB&T 15.1 3 Live Oak Bank 14.6 4 First Citizens 12.6 5 Bank of America 8.8 6 PNC 5.7 7 Yadkin 5.0 8 SunTrust 4.1 9 TD Bank 3.2 10 South State Bank 2.7 Total $5.1 Billion 100% See endnotes (11) 1 Bank of America 73.7 2 Well
Slide 32: Demographic Highlights
Demographic Highlights See endnotes (12) 3.69% 4.84% 4.93% 5.40% US GA NC SC State Population Growth Projected Change 2016 - 2021 3.69% 5.25% 5.70% 6.91% 6.91% 7.01% 8.47% 8.47% 9.50% US Columbia Greenville Savannah Wilmington Charlotte Hilton Head Charleston Myrtle Beach MSA Population Growth Proje
Slide 33: Select MSA Markets
Select MSA Markets Market Rank Deposit Market Share (%) Projected Population Change 2016-2021 (%) Orangeburg, SC 1 49.2 (0.64) Hilton Head Island-Bluffton-Beaufort, SC 2 15.4 8.47 Florence, SC 2 14.4 2.54 Charleston-North Charleston, SC 3 13.4 8.47 Savannah, GA 4 8.5 6.91 Sumter, SC 5 8.0 2.02 Green
Slide 34: Economic Highlights
Economic Highlights Wilmington SOUTH CAROLINA Georgetown Myrtle Beach Charleston Savannah Hilton Head Island Atlanta Athens Gainesville Greenville Columbia Florence GEORGIA NORTH CAROLINA Population Growth Projected Change 2016-2021
Slide 35: Unemployment Data
Unemployment Data See endnotes (14) 5.8% 5.8% 5.7% 5.1% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 National North Carolina South Carolina Georgia
Slide 36: 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) Sep-14 YTD Sep-15 YTD % Change Sep-14 YTD Sep-15 YTD % Change Sep-14 YTD Sep-15 YTD % Change Beaufort 1,477 1,583 7.2% $144,950 $167,
Slide 37: Median Household Income
Median Household Income See endnotes (16)
Slide 38: Analyst Coverage
Analyst Coverage FIG Partners Keefe, Bruyette & Woods Piper Jaffray Sandler O’Neill SunTrust Robinson Humphrey
Slide 39: Endnotes
Endnotes Source: SNL Financial. Pricing performance shown from 12/31/09 -10/26/15. SNL Southeast U.S. Bank index includes all major exchange traded banks headquartered in AL, AR, FL, GA, MS, NC, SC, TN, VA, and WV. Total return includes distribution of dividends. Income reduced by amortization of In
Slide 40: 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 James C. Mabry IV Executive Vice President Investor
Slide 41: Investor Contacts
Investor Contacts Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Financial Officer / Chief Operating Officer James C. Mabry IV Executive Vice President Investor Relations and Mergers & Acquisitions 520 Ger Street S) OUT H ST T E Columbia, South C
Slide 42: South State Corporation
$ SouTH STaTE CORPORATION © Florenéo ° \ 2 C4 Wilmington \ Atlanta \ CN, @ de Georgetown Head Island