Southstate Bank Corporation · NYSE:SSB
Southstate Bank — South State — Q3 2019 Earnings Presentation
13 slides from Southstate Bank's earnings presentation, Oct 29, 2019
Slide 1: Earnings Call 3Q2019
1 Earnings Call 3Q2019 Tuesday, October 29, 2019
Slide 2: Forward Looking Statements
2 2 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 Secur
Slide 3: Targets: Loan Growth, Expense Growth, Efficiency Ratio, Capital, Longer-term ROTCE
3 3 Loan Growth 5 - 10% Expense Growth 0 - 3% Efficiency Ratio 56 - 57% Capital TCE / TA 8-9% Dividend Payout Range 30 – 35% Longer-term Targets ROTCE 16 - 18%
Slide 4: 3Q Highlights
4 4 3Q 19 Highlights *Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses and securities gains or losses. GAAP Adjusted* Net Income (millions) $51.56 $51.22 EPS $1.50 $1.49 Return on Average Assets 1.31% 1.30% Return on Average Tangible
Slide 5: Net Interest Margin
5 5 Net Interest Margin 4.04% 3.98% 3.92% 3.82% 3.73% $115.6 $116.5 $114.1 $118.0 $119.3 $128.3 $126.4 $123.3 $127.2 $127.4 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Net Interest Margin NII - Excluding Accretion Net Interest Income Dollars in millions
Slide 6: Average Interest Earning Assets
6 6 Average Interest Earning Assets Dollars in millions Quarterly Averages Assets % of Earning Assets 2Q 19 % of Earning Assets 3Q 19 Change Short-Term Investments 4.5% $ 602 3.6% $ 492 $ (110) Investment Securities 12.1 1,621 13.4 1,820 199 Loans – Acquired 20.1 2,695 18.2 2,471 (224) Loans – Non-a
Slide 7: Accretion / Total Interest Income
7 7 Dollars in millions Accretable Yield 17.9% 12.5% 10.3% 6.1% 5.4% 5% 10% 15% 20% 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 Accretion / Total Interest Income 3Q 2019 (Yields Annualized) Income Statement Contractual Interest Accretion Total Income Contractual Yield Total Yield Acquired Credit Im
Slide 8: Acquired Loan Portfolio
8 8 Acquired Loan Portfolio (A) Represents total loan discount made up of $9.9 million credit mark ($15.3 million total non-accretable difference less $5.4 million interest portion of non-accretable difference) and a non-credit discount of $39.2 million (B) Represents cash flows of principal totalin
Slide 9: 3rd Quarter 2019 Highlights
9 9 3rd Quarter 2019 Highlights In millions; * Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, and securities gains or losses and Pension Plan termination.
Slide 10: 3rd Quarter 2019 Highlights: Noninterest Expense
10 10 3rd Quarter 2019 Highlights Noninterest Expense 2Q 2019 3Q 2019 Net Change Salaries and Benefits 58.6 $ 59.6 $ 1.0 $ Information services expense 8.7 8.9 0.2 OREO and loan related expense 0.9 0.6 (0.3) Net occupancy expense & FFE 11.8 11.8 0.0 FDIC assessment & regulatory chgs 1.4 0.2 (1.2) Ba
Slide 11: Efficiency Ratio
11 11 62.3% 59.4% 63.2% 66.9% 58.4% 59.5% 59.4% 62.5% 59.8% 58.4% 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 Efficiency Ratio Adjusted* Efficiency Ratio Efficiency Ratio * Adjusted is a Non-GAAP financial measure that excludes the impact of branch consolidation, merger related expenses, and securities gains or l
Slide 12: Tangible Book Value
12 12 Tangible Book Value $35.37 $36.30 $37.15 $37.85 $38.20 $32.00 $34.00 $36.00 $38.00 $40.00 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19
Slide 13: Share Repurchase Activity
13 13 Share Repurchase Activity 1Q19 • 500,000 shares • $66.53 per share average • $33.3 million 2Q19 • 641,200 shares • $73.13 per share average • $46.9 million 3Q19 • 858,800 shares • $75.08 per share average • $64.5 million 4Q19 to date • 165,000 shares • $74.88 per share average • $12.4 million