WINTER
HAVEN, Fla., July 28,
2022 /PRNewswire/ -- SouthState Corporation (NASDAQ:
SSB) today released its unaudited results of operations and other
financial information for the three-month and six-month periods
ended June 30, 2022.
The Company reported consolidated net income of $1.57 per diluted common share for the three
months ended June 30, 2022, compared
to $1.39 per diluted common share for
the three months ended March 31,
2022, and compared to $1.39
per diluted common share one year ago.
Adjusted net income (non-GAAP) totaled $1.62 per diluted share for the three months
ended June 30, 2022, compared to
$1.69 per diluted share for the three
months ended March 31, 2022, and
compared to $1.87 per diluted share
one year ago. Adjusted net income in the second quarter of
2022 excludes $4.2 million of merger
and branch consolidation related expense (after-tax).
"We are pleased to report very strong performance in the second
quarter, with record pre-provision net revenue, robust loan growth,
and continued strength in asset quality," said John C. Corbett, Chief Executive Officer.
"Our strong revenue growth in the quarter and limited expense
growth combined to produce 12% operating leverage. We are also
pleased that our pre-provision net revenue per diluted share rose
almost 30% from Q1 levels."
Highlights of the second quarter of 2022 include:
Returns
- Reported and Adjusted Diluted Earnings per Share ("EPS") of
$1.57 and $1.62 (Non-GAAP), respectively
- Net Income and Adjusted Net Income of $119.2 million and $123.4
million (Non-GAAP), respectively
- Return on Average Common Equity of 9.36%* and
Reported and Adjusted Return on Average Tangible Common Equity of
16.6%* (Non-GAAP) and 17.2%* (Non-GAAP),
respectively
- Return on Average Assets ("ROAA") and Adjusted ROAA of
1.04%* and 1.08%* (Non-GAAP),
respectively
- Pre-Provision Net Revenue ("PPNR") of $176.8 million (Non-GAAP), or
1.55%* PPNR ROAA (Non-GAAP)
- PPNR per weighted average diluted share (Non-GAAP) of
$2.32, up nearly 30% from the prior
quarter's $1.79 and up 46% from
$1.59 one year ago
- Book Value per Share of $66.64
decreased by $1.66 per share compared
to the prior quarter primarily due to the $2.60 per share impact from the change in
accumulated other comprehensive loss
- Tangible Book Value ("TBV") per Share of $39.47 (Non-GAAP), down $1.58, or 3.8% from the prior quarter
- Recorded a provision for credit losses of $19.3 million compared to a negative provision
for credit losses of $8.4 million in
the prior quarter
∗ Annualized
Performance
- Net Interest Income of $314.3
million; Core Net Interest Income (non-GAAP) (excluding loan
accretion and deferred fees on PPP) increased $47.8 million from prior quarter
- Net Interest Margin ("NIM"), non-tax equivalent and tax
equivalent (non-GAAP) of 3.10% and 3.12%, respectively, up 0.35%
from prior quarter
- Total deposit cost of 0.06%, up 1 basis point from prior
quarter
- Noninterest Income of $88.3
million, up $2.2 million
compared to the prior quarter, with a $4.8
million increase in fee income on deposit accounts offset by
a $5.1 million decline in mortgage
banking income
- Noninterest Income represented 0.77% of average assets for the
second quarter of 2022
- Noninterest Expense, excluding merger and branch consolidation
related expense (Non-GAAP), increased $7.5
million compared to the prior quarter; salaries and employee
benefits declined by $636
thousand
- Efficiency ratio and adjusted efficiency ratio (non-GAAP)
improved to 54.9% and 53.6%, respectively, from prior quarter's
63.0% and 60.1%, respectively
Balance Sheet / Credit
- Fed funds and interest-earning cash of $4.2 billion represents 9.0% of assets
- Loan production† of $3.9 billion,
excluding production by legacy Atlantic Capital Bancshares, Inc.
("ACBI")
- Loans, excluding PPP loans, increased $1.5 billion, or 22.0% annualized. Of the
second quarter loan growth, 53% was commercial loan growth, led by
commercial and industrial loans, and 47% was consumer growth, led
by consumer real estate loans.
- Loans, excluding PPP loans, grew 12.3% over the last year
- Deposits increased $100.0
million, or 1.0% annualized, with core deposit growth
totaling $224.1 million, or 2.5%
annualized
- 36.9% of total deposits are noninterest-bearing checking
- Net charge-offs of $2.3 million,
or 0.03% annualized
† Loan production indicates committed balance total
Subsequent Events
- The Board of Directors of the Company increased its quarterly
cash dividend on its common stock from $0.49 per share to $0.50 per share; the dividend is payable on
August 19, 2022 to shareholders of
record as of August 12, 2022
Financial Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
(Dollars in
thousands, except per share data)
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
INCOME
STATEMENT
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees (1)
|
|
$
|
272,000
|
|
$
|
233,617
|
|
$
|
238,310
|
|
$
|
246,065
|
|
$
|
246,177
|
|
$
|
505,617
|
|
$
|
506,144
|
|
Investment
securities, trading securities, federal funds sold and
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchased under
agreements to resell
|
|
|
53,659
|
|
|
36,847
|
|
|
29,071
|
|
|
25,384
|
|
|
21,364
|
|
|
90,506
|
|
|
39,873
|
|
Total interest
income
|
|
|
325,659
|
|
|
270,464
|
|
|
267,381
|
|
|
271,449
|
|
|
267,541
|
|
|
596,123
|
|
|
546,017
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
5,776
|
|
|
4,628
|
|
|
5,121
|
|
|
7,267
|
|
|
9,537
|
|
|
10,404
|
|
|
20,795
|
|
Federal
funds purchased, securities sold under agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to repurchase, and
other borrowings
|
|
|
5,604
|
|
|
4,362
|
|
|
4,156
|
|
|
4,196
|
|
|
4,874
|
|
|
9,966
|
|
|
10,094
|
|
Total interest
expense
|
|
|
11,380
|
|
|
8,990
|
|
|
9,277
|
|
|
11,463
|
|
|
14,411
|
|
|
20,370
|
|
|
30,889
|
|
Net interest
income
|
|
|
314,279
|
|
|
261,474
|
|
|
258,104
|
|
|
259,986
|
|
|
253,130
|
|
|
575,753
|
|
|
515,128
|
|
Provision
(recovery) for credit losses
|
|
|
19,286
|
|
|
(8,449)
|
|
|
(9,157)
|
|
|
(38,903)
|
|
|
(58,793)
|
|
|
10,837
|
|
|
(117,213)
|
|
Net interest income
after provision (recovery) for credit losses
|
|
|
294,993
|
|
|
269,923
|
|
|
267,261
|
|
|
298,889
|
|
|
311,923
|
|
|
564,916
|
|
|
632,341
|
|
Noninterest
income
|
|
|
88,292
|
|
|
86,090
|
|
|
91,894
|
|
|
87,010
|
|
|
79,020
|
|
|
174,382
|
|
|
175,305
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating
expense
|
|
|
225,779
|
|
|
218,324
|
|
|
217,392
|
|
|
214,672
|
|
|
218,707
|
|
|
444,103
|
|
|
437,409
|
|
Merger and branch
consolidation related expense
|
|
|
5,390
|
|
|
10,276
|
|
|
6,645
|
|
|
17,618
|
|
|
32,970
|
|
|
15,666
|
|
|
42,979
|
|
Extinguishment of debt
cost
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,706
|
|
|
—
|
|
|
11,706
|
|
Total noninterest
expense
|
|
|
231,169
|
|
|
228,600
|
|
|
224,037
|
|
|
232,290
|
|
|
263,383
|
|
|
459,769
|
|
|
492,094
|
|
Income before
provision for income taxes
|
|
|
152,116
|
|
|
127,413
|
|
|
135,118
|
|
|
153,609
|
|
|
127,560
|
|
|
279,529
|
|
|
315,552
|
|
Income taxes
provision
|
|
|
32,941
|
|
|
27,084
|
|
|
28,272
|
|
|
30,821
|
|
|
28,600
|
|
|
60,025
|
|
|
69,643
|
|
Net
income
|
|
$
|
119,175
|
|
$
|
100,329
|
|
$
|
106,846
|
|
$
|
122,788
|
|
$
|
98,960
|
|
$
|
219,504
|
|
$
|
245,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
119,175
|
|
$
|
100,329
|
|
$
|
106,846
|
|
$
|
122,788
|
|
$
|
98,960
|
|
$
|
219,504
|
|
$
|
245,909
|
|
Securities gains, net
of tax
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(51)
|
|
|
(28)
|
|
|
—
|
|
|
(28)
|
|
Initial provision for
credit losses - NonPCD loans and UFC from ACBI, net of
tax
|
|
|
—
|
|
|
13,492
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,492
|
|
|
—
|
|
Merger and branch
consolidation related expense, net of tax
|
|
|
4,223
|
|
|
8,092
|
|
|
5,255
|
|
|
14,083
|
|
|
25,578
|
|
|
12,314
|
|
|
33,402
|
|
Extinguishment of debt
cost, net of tax
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,081
|
|
|
—
|
|
|
9,081
|
|
Adjusted net income
(non-GAAP)
|
|
$
|
123,398
|
|
$
|
121,913
|
|
$
|
112,099
|
|
$
|
136,820
|
|
$
|
133,591
|
|
$
|
245,310
|
|
$
|
288,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
|
1.58
|
|
$
|
1.40
|
|
$
|
1.53
|
|
$
|
1.75
|
|
$
|
1.40
|
|
$
|
2.99
|
|
$
|
3.47
|
|
Diluted
earnings per common share
|
|
$
|
1.57
|
|
$
|
1.39
|
|
$
|
1.52
|
|
$
|
1.74
|
|
$
|
1.39
|
|
$
|
2.96
|
|
$
|
3.44
|
|
Adjusted
net income per common share - Basic (non-GAAP) (2)
|
|
$
|
1.64
|
|
$
|
1.71
|
|
$
|
1.61
|
|
$
|
1.95
|
|
$
|
1.89
|
|
$
|
3.34
|
|
$
|
4.07
|
|
Adjusted
net income per common share - Diluted (non-GAAP) (2)
|
|
$
|
1.62
|
|
$
|
1.69
|
|
$
|
1.59
|
|
$
|
1.94
|
|
$
|
1.87
|
|
$
|
3.31
|
|
$
|
4.04
|
|
Dividends
per common share
|
|
$
|
0.49
|
|
$
|
0.49
|
|
$
|
0.49
|
|
$
|
0.49
|
|
$
|
0.47
|
|
$
|
0.98
|
|
$
|
0.94
|
|
Basic
weighted-average common shares outstanding
|
|
|
75,461,157
|
|
|
71,447,429
|
|
|
69,651,334
|
|
|
70,066,235
|
|
|
70,866,193
|
|
|
73,464,620
|
|
|
70,937,301
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,094,198
|
|
|
72,110,746
|
|
|
70,289,971
|
|
|
70,575,726
|
|
|
71,408,888
|
|
|
74,103,640
|
|
|
71,444,631
|
|
Effective
tax rate
|
|
|
21.66 %
|
|
|
21.26 %
|
|
|
20.92 %
|
|
|
20.06 %
|
|
|
22.42 %
|
|
|
21.47 %
|
|
|
22.07 %
|
|
Performance and Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
1.04
|
%
|
|
0.95
|
%
|
|
1.02
|
%
|
|
1.20
|
%
|
|
1.00
|
%
|
1.00
|
%
|
1.27
|
%
|
|
Adjusted return on
average assets (annualized) (non-GAAP) (2)
|
|
|
1.08
|
%
|
|
1.15
|
%
|
|
1.08
|
%
|
|
1.34
|
%
|
|
1.35
|
%
|
1.11
|
%
|
1.49
|
%
|
|
Return on average
common equity (annualized)
|
|
|
9.36
|
%
|
|
8.24
|
%
|
|
8.84
|
%
|
|
10.21
|
%
|
|
8.38
|
%
|
8.81
|
%
|
10.52
|
%
|
|
Adjusted return on
average common equity (annualized) (non-GAAP) (2)
|
|
|
9.69
|
%
|
|
10.01
|
%
|
|
9.28
|
%
|
|
11.37
|
%
|
|
11.31
|
%
|
9.85
|
%
|
12.34
|
%
|
|
Return on average
tangible common equity (annualized) (non-GAAP) (3)
|
|
|
16.59
|
%
|
|
13.97
|
%
|
|
14.63
|
%
|
|
16.86
|
%
|
|
14.12
|
%
|
15.28
|
%
|
17.59
|
%
|
|
Adjusted return on
average tangible common equity (annualized) (non-GAAP) (2)
(3)
|
|
|
17.15
|
%
|
|
16.79
|
%
|
|
15.30
|
%
|
|
18.68
|
%
|
|
18.74
|
%
|
16.97
|
%
|
20.46
|
%
|
|
Efficiency ratio (tax
equivalent)
|
|
|
54.92
|
%
|
|
62.99
|
%
|
|
61.27
|
%
|
|
64.22
|
%
|
|
76.28
|
%
|
58.66
|
%
|
68.38
|
%
|
|
Adjusted efficiency
ratio (non-GAAP) (4)
|
|
|
53.59
|
%
|
|
60.05
|
%
|
|
59.39
|
%
|
|
59.16
|
%
|
|
62.88
|
%
|
56.58
|
%
|
60.49
|
%
|
|
Dividend payout ratio
(5)
|
|
|
31.03
|
%
|
|
33.71
|
%
|
|
32.02
|
%
|
|
27.94
|
%
|
|
33.65
|
%
|
32.26
|
%
|
27.12
|
%
|
|
Book value per common
share
|
|
$
|
66.64
|
|
$
|
68.30
|
|
$
|
69.27
|
|
$
|
68.55
|
|
$
|
67.60
|
|
|
|
|
|
|
Tangible book value per
common share (non-GAAP) (3)
|
|
$
|
39.47
|
|
$
|
41.05
|
|
$
|
44.62
|
|
$
|
43.98
|
|
$
|
43.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
|
|
|
10.9
|
%
|
|
11.2
|
%
|
|
11.4
|
%
|
|
11.7
|
%
|
|
11.8
|
%
|
|
|
|
|
|
Tangible
equity-to-tangible assets (non-GAAP) (3)
|
|
|
6.8
|
%
|
|
7.0
|
%
|
|
7.7
|
%
|
|
7.8
|
%
|
|
7.8
|
%
|
|
|
|
|
|
Tier 1 leverage (6)
*
|
|
|
8.0
|
%
|
|
8.5
|
%
|
|
8.1
|
%
|
|
8.1
|
%
|
|
8.1
|
%
|
|
|
|
|
|
Tier 1 common equity
(6) *
|
|
|
11.1
|
%
|
|
11.4
|
%
|
|
11.8
|
%
|
|
11.9
|
%
|
|
12.1
|
%
|
|
|
|
|
|
Tier 1 risk-based
capital (6) *
|
|
|
11.1
|
%
|
|
11.4
|
%
|
|
11.8
|
%
|
|
11.9
|
%
|
|
12.1
|
%
|
|
|
|
|
|
Total risk-based
capital (6) *
|
|
|
13.0
|
%
|
|
13.3
|
%
|
|
13.6
|
%
|
|
13.8
|
%
|
|
14.1
|
%
|
|
|
|
|
|
|
* The regulatory
capital ratios presented above include the assumption of the
transitional method relative to the CARES Act in relief of COVID-19
pandemic on the economy and financial institutions in the United
States. The referenced relief allows a total five-year "phase
in" of the CECL impact on capital and relief over the next two
years for the impact on the allowance for credit losses resulting
from COVID-19.
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
(Dollars in
thousands, except per share and share data)
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
BALANCE
SHEET
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
$
|
561,516
|
|
$
|
588,372
|
|
$
|
476,653
|
|
$
|
597,321
|
|
$
|
529,434
|
|
Federal
Funds Sold and interest-earning deposits with banks
|
|
|
4,160,583
|
|
|
5,444,234
|
|
|
6,366,494
|
|
|
5,701,002
|
|
|
5,875,078
|
|
Cash and cash
equivalents
|
|
|
4,722,099
|
|
|
6,032,606
|
|
|
6,843,147
|
|
|
6,298,323
|
|
|
6,404,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities, at
fair value
|
|
|
88,088
|
|
|
74,234
|
|
|
77,689
|
|
|
61,294
|
|
|
89,925
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
held to maturity
|
|
|
2,806,465
|
|
|
2,827,769
|
|
|
1,819,901
|
|
|
1,641,485
|
|
|
1,189,265
|
|
Securities
available for sale, at fair value
|
|
|
5,666,008
|
|
|
5,924,206
|
|
|
5,193,478
|
|
|
4,631,554
|
|
|
4,369,159
|
|
Other
investments
|
|
|
179,815
|
|
|
179,258
|
|
|
160,568
|
|
|
160,592
|
|
|
160,607
|
|
Total investment securities
|
|
|
8,652,288
|
|
|
8,931,233
|
|
|
7,173,947
|
|
|
6,433,631
|
|
|
5,719,031
|
|
Loans held for
sale
|
|
|
73,880
|
|
|
130,376
|
|
|
191,723
|
|
|
242,813
|
|
|
171,447
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased credit
deteriorated
|
|
|
1,707,592
|
|
|
1,939,033
|
|
|
1,987,322
|
|
|
2,255,874
|
|
|
2,434,259
|
|
Purchased non-credit
deteriorated
|
|
|
6,908,234
|
|
|
7,633,824
|
|
|
5,890,069
|
|
|
6,554,647
|
|
|
7,457,950
|
|
Non-acquired
|
|
|
19,319,440
|
|
|
16,983,570
|
|
|
16,050,775
|
|
|
14,978,428
|
|
|
14,140,869
|
|
Less
allowance for credit losses
|
|
|
(319,708)
|
|
|
(300,396)
|
|
|
(301,807)
|
|
|
(314,144)
|
|
|
(350,401)
|
|
Loans, net
|
|
|
27,615,558
|
|
|
26,256,031
|
|
|
23,626,359
|
|
|
23,474,805
|
|
|
23,682,677
|
|
Other real estate owned
("OREO")
|
|
|
1,431
|
|
|
3,290
|
|
|
2,736
|
|
|
3,687
|
|
|
5,039
|
|
Premises and equipment,
net
|
|
|
562,781
|
|
|
568,332
|
|
|
558,499
|
|
|
569,817
|
|
|
568,473
|
|
Bank owned life
insurance
|
|
|
953,970
|
|
|
942,922
|
|
|
783,049
|
|
|
778,552
|
|
|
773,452
|
|
Mortgage servicing
rights
|
|
|
87,463
|
|
|
83,339
|
|
|
65,620
|
|
|
60,922
|
|
|
57,351
|
|
Core deposit and other
intangibles
|
|
|
132,694
|
|
|
140,364
|
|
|
128,067
|
|
|
136,584
|
|
|
145,126
|
|
Goodwill
|
|
|
1,922,525
|
|
|
1,924,024
|
|
|
1,581,085
|
|
|
1,581,085
|
|
|
1,581,085
|
|
Other assets
|
|
|
1,394,645
|
|
|
1,114,790
|
|
|
928,111
|
|
|
1,262,195
|
|
|
1,177,751
|
|
Total assets
|
|
$
|
46,207,422
|
|
$
|
46,201,541
|
|
$
|
41,960,032
|
|
$
|
40,903,708
|
|
$
|
40,375,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
14,337,018
|
|
$
|
14,052,332
|
|
$
|
11,498,840
|
|
$
|
11,333,881
|
|
$
|
11,176,338
|
|
Interest-bearing
|
|
|
24,538,833
|
|
|
24,723,498
|
|
|
23,555,989
|
|
|
22,226,677
|
|
|
22,066,031
|
|
Total deposits
|
|
|
38,875,851
|
|
|
38,775,830
|
|
|
35,054,829
|
|
|
33,560,558
|
|
|
33,242,369
|
|
Federal funds purchased
and securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under
agreements to repurchase
|
|
|
669,999
|
|
|
770,409
|
|
|
781,239
|
|
|
859,736
|
|
|
862,429
|
|
Other
borrowings
|
|
|
392,460
|
|
|
405,553
|
|
|
327,066
|
|
|
326,807
|
|
|
351,548
|
|
Reserve for unfunded
commitments
|
|
|
32,543
|
|
|
30,368
|
|
|
30,510
|
|
|
28,289
|
|
|
30,981
|
|
Other
liabilities
|
|
|
1,196,144
|
|
|
1,044,973
|
|
|
963,448
|
|
|
1,335,377
|
|
|
1,130,919
|
|
Total liabilities
|
|
|
41,166,997
|
|
|
41,027,133
|
|
|
37,157,092
|
|
|
36,110,767
|
|
|
35,618,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock - $2.50 par value; authorized 160,000,000 shares
|
|
|
189,103
|
|
|
189,403
|
|
|
173,331
|
|
|
174,795
|
|
|
175,957
|
|
Surplus
|
|
|
4,195,976
|
|
|
4,214,897
|
|
|
3,653,098
|
|
|
3,693,622
|
|
|
3,720,946
|
|
Retained
earnings
|
|
|
1,146,230
|
|
|
1,064,064
|
|
|
997,657
|
|
|
925,044
|
|
|
836,584
|
|
Accumulated other comprehensive (loss) income
|
|
|
(490,884)
|
|
|
(293,956)
|
|
|
(21,146)
|
|
|
(520)
|
|
|
24,136
|
|
Total shareholders' equity
|
|
|
5,040,425
|
|
|
5,174,408
|
|
|
4,802,940
|
|
|
4,792,941
|
|
|
4,757,623
|
|
Total liabilities and shareholders' equity
|
|
$
|
46,207,422
|
|
$
|
46,201,541
|
|
$
|
41,960,032
|
|
$
|
40,903,708
|
|
$
|
40,375,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
|
|
75,641,322
|
|
|
75,761,018
|
|
|
69,332,297
|
|
|
69,918,037
|
|
|
70,382,728
|
|
Net Interest Income and Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Jun. 30,
2022
|
|
Mar. 31,
2022
|
|
Jun. 30,
2021
|
|
(Dollars in
thousands)
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
YIELD
ANALYSIS
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
interest-earning deposits with banks
|
|
$
|
4,597,551
|
|
$
|
8,635
|
|
0.75 %
|
|
$
|
5,678,147
|
|
$
|
2,852
|
|
0.20 %
|
|
$
|
5,670,674
|
|
$
|
1,350
|
|
0.10 %
|
|
Investment
securities
|
|
|
8,880,419
|
|
|
45,024
|
|
2.03 %
|
|
|
7,895,281
|
|
|
33,995
|
|
1.75 %
|
|
|
5,371,985
|
|
|
20,014
|
|
1.49 %
|
|
Loans held for
sale
|
|
|
76,567
|
|
|
791
|
|
4.14 %
|
|
|
110,542
|
|
|
869
|
|
3.19 %
|
|
|
281,547
|
|
|
1,977
|
|
2.82 %
|
|
Total loans, excluding
PPP
|
|
|
27,055,042
|
|
|
271,003
|
|
4.02 %
|
|
|
24,675,512
|
|
|
231,373
|
|
3.80 %
|
|
|
22,588,076
|
|
|
225,664
|
|
4.01 %
|
|
Total PPP
loans
|
|
|
77,816
|
|
|
206
|
|
1.06 %
|
|
|
167,541
|
|
|
1,375
|
|
3.33 %
|
|
|
1,719,323
|
|
|
18,536
|
|
4.32 %
|
|
Total loans held for
investment
|
|
|
27,132,858
|
|
|
271,209
|
|
4.01 %
|
|
|
24,843,053
|
|
|
232,748
|
|
3.80 %
|
|
|
24,307,399
|
|
|
244,200
|
|
4.03 %
|
|
Total interest-earning
assets
|
|
|
40,687,395
|
|
|
325,659
|
|
3.21 %
|
|
|
38,527,023
|
|
|
270,464
|
|
2.85 %
|
|
|
35,631,605
|
|
|
267,541
|
|
3.01 %
|
|
Noninterest-earning
assets
|
|
|
5,160,394
|
|
|
|
|
|
|
|
4,419,309
|
|
|
|
|
|
|
|
4,201,147
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
45,847,789
|
|
|
|
|
|
|
$
|
42,946,332
|
|
|
|
|
|
|
$
|
39,832,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money
market accounts
|
|
$
|
18,316,890
|
|
$
|
3,836
|
|
0.08 %
|
|
$
|
17,473,192
|
|
$
|
2,217
|
|
0.05 %
|
|
$
|
15,453,940
|
|
$
|
4,513
|
|
0.12 %
|
|
Savings
deposits
|
|
|
3,548,192
|
|
|
143
|
|
0.02 %
|
|
|
3,408,129
|
|
|
130
|
|
0.02 %
|
|
|
2,995,871
|
|
|
453
|
|
0.06 %
|
|
Certificates and other
time deposits
|
|
|
2,776,478
|
|
|
1,797
|
|
0.26 %
|
|
|
2,848,829
|
|
|
2,281
|
|
0.32 %
|
|
|
3,408,778
|
|
|
4,571
|
|
0.54 %
|
|
Federal funds
purchased
|
|
|
333,326
|
|
|
628
|
|
0.76 %
|
|
|
354,899
|
|
|
111
|
|
0.13 %
|
|
|
520,585
|
|
|
112
|
|
0.09 %
|
|
Repurchase
agreements
|
|
|
403,008
|
|
|
153
|
|
0.15 %
|
|
|
438,258
|
|
|
158
|
|
0.15 %
|
|
|
394,056
|
|
|
211
|
|
0.21 %
|
|
Other
borrowings
|
|
|
405,241
|
|
|
4,823
|
|
4.77 %
|
|
|
354,133
|
|
|
4,093
|
|
4.69 %
|
|
|
368,897
|
|
|
4,551
|
|
4.95 %
|
|
Total interest-bearing
liabilities
|
|
|
25,783,135
|
|
|
11,380
|
|
0.18 %
|
|
|
24,877,440
|
|
|
8,990
|
|
0.15 %
|
|
|
23,142,127
|
|
|
14,411
|
|
0.25 %
|
|
Noninterest-bearing
liabilities ("Non-IBL")
|
|
|
14,955,329
|
|
|
|
|
|
|
|
13,131,727
|
|
|
|
|
|
|
|
11,951,384
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
5,109,325
|
|
|
|
|
|
|
|
4,937,165
|
|
|
|
|
|
|
|
4,739,241
|
|
|
|
|
|
|
Total Non-IBL and
shareholders' equity
|
|
|
20,064,654
|
|
|
|
|
|
|
|
18,068,892
|
|
|
|
|
|
|
|
16,690,625
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
45,847,789
|
|
|
|
|
|
|
$
|
42,946,332
|
|
|
|
|
|
|
$
|
39,832,752
|
|
|
|
|
|
|
Net Interest Income
and Margin (Non-Tax Equivalent)
|
|
|
|
|
$
|
314,279
|
|
3.10 %
|
|
|
|
|
$
|
261,474
|
|
2.75 %
|
|
|
|
|
$
|
253,130
|
|
2.85 %
|
|
Net Interest Margin
(Tax Equivalent)
|
|
|
|
|
|
|
|
3.12 %
|
|
|
|
|
|
|
|
2.77 %
|
|
|
|
|
|
|
|
2.87 %
|
|
Total Deposit Cost
(without Debt and Other Borrowings)
|
|
|
|
|
|
|
|
0.06 %
|
|
|
|
|
|
|
|
0.05 %
|
|
|
|
|
|
|
|
0.12 %
|
|
Overall Cost of
Funds (including Demand Deposits)
|
|
|
|
|
|
|
|
0.12 %
|
|
|
|
|
|
|
|
0.10 %
|
|
|
|
|
|
|
|
0.17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accretion on
Acquired Loans (1)
|
|
|
|
|
$
|
12,770
|
|
|
|
|
|
|
$
|
6,741
|
|
|
|
|
|
|
$
|
6,292
|
|
|
|
Total Deferred Fees
on PPP Loans
|
|
|
|
|
$
|
8
|
|
|
|
|
|
|
$
|
983
|
|
|
|
|
|
|
$
|
14,232
|
|
|
|
Tax Equivalent
Adjustment
|
|
|
|
|
$
|
2,249
|
|
|
|
|
|
|
$
|
1,885
|
|
|
|
|
|
|
$
|
1,424
|
|
|
|
|
|
(1)
|
The remaining loan
discount on acquired loans to be accreted into loan interest income
totals $89.0 million as of June 30, 2022.
|
Noninterest Income and Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on
deposit accounts
|
|
$
|
33,658
|
|
$
|
28,902
|
|
$
|
30,293
|
|
$
|
26,130
|
|
$
|
23,936
|
|
$
|
62,560
|
|
$
|
49,218
|
|
Mortgage
banking income
|
|
|
5,480
|
|
|
10,594
|
|
|
12,044
|
|
|
15,560
|
|
|
10,115
|
|
|
16,074
|
|
|
36,995
|
|
Trust and
investment services income
|
|
|
9,831
|
|
|
9,718
|
|
|
9,520
|
|
|
9,150
|
|
|
9,733
|
|
|
19,549
|
|
|
18,311
|
|
Securities
gains, net
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
64
|
|
|
36
|
|
|
—
|
|
|
36
|
|
Correspondent banking and capital market income
|
|
|
27,604
|
|
|
27,994
|
|
|
30,216
|
|
|
25,164
|
|
|
25,877
|
|
|
55,598
|
|
|
54,625
|
|
Bank owned
life insurance income
|
|
|
6,246
|
|
|
5,260
|
|
|
4,932
|
|
|
5,132
|
|
|
5,047
|
|
|
11,506
|
|
|
8,346
|
|
Other
|
|
|
5,473
|
|
|
3,622
|
|
|
4,887
|
|
|
5,810
|
|
|
4,276
|
|
|
9,095
|
|
|
7,774
|
|
Total Noninterest Income
|
|
$
|
88,292
|
|
$
|
86,090
|
|
$
|
91,894
|
|
$
|
87,010
|
|
$
|
79,020
|
|
$
|
174,382
|
|
$
|
175,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
$
|
137,037
|
|
$
|
137,673
|
|
$
|
137,321
|
|
$
|
136,969
|
|
$
|
137,379
|
|
$
|
274,710
|
|
$
|
277,740
|
|
Occupancy
expense
|
|
|
22,759
|
|
|
21,840
|
|
|
22,915
|
|
|
23,135
|
|
|
22,844
|
|
|
44,599
|
|
|
46,175
|
|
Information services expense
|
|
|
19,947
|
|
|
19,193
|
|
|
18,489
|
|
|
18,061
|
|
|
19,078
|
|
|
39,140
|
|
|
37,867
|
|
OREO and
loan related (income) expense
|
|
|
(3)
|
|
|
(238)
|
|
|
(740)
|
|
|
1,527
|
|
|
240
|
|
|
(241)
|
|
|
1,242
|
|
Business
development and staff related
|
|
|
4,916
|
|
|
4,276
|
|
|
4,577
|
|
|
4,424
|
|
|
4,305
|
|
|
9,192
|
|
|
7,676
|
|
Amortization of intangibles
|
|
|
8,847
|
|
|
8,494
|
|
|
8,517
|
|
|
8,543
|
|
|
8,968
|
|
|
17,341
|
|
|
18,132
|
|
Professional fees
|
|
|
4,331
|
|
|
3,749
|
|
|
2,639
|
|
|
2,415
|
|
|
2,301
|
|
|
8,080
|
|
|
5,575
|
|
Supplies
and printing expense
|
|
|
2,400
|
|
|
2,189
|
|
|
2,179
|
|
|
2,310
|
|
|
2,500
|
|
|
4,589
|
|
|
5,170
|
|
FDIC
assessment and other regulatory charges
|
|
|
5,332
|
|
|
4,812
|
|
|
4,965
|
|
|
4,245
|
|
|
4,931
|
|
|
10,144
|
|
|
8,772
|
|
Advertising and marketing
|
|
|
2,286
|
|
|
1,763
|
|
|
2,375
|
|
|
2,185
|
|
|
1,659
|
|
|
4,049
|
|
|
3,399
|
|
Other
operating expenses
|
|
|
17,927
|
|
|
14,573
|
|
|
14,155
|
|
|
10,858
|
|
|
14,502
|
|
|
32,500
|
|
|
25,661
|
|
Merger and
branch consolidation related expense
|
|
|
5,390
|
|
|
10,276
|
|
|
6,645
|
|
|
17,618
|
|
|
32,970
|
|
|
15,666
|
|
|
42,979
|
|
Extinguishment of debt cost
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,706
|
|
|
—
|
|
|
11,706
|
|
Total Noninterest Expense
|
|
$
|
231,169
|
|
$
|
228,600
|
|
$
|
224,037
|
|
$
|
232,290
|
|
$
|
263,383
|
|
$
|
459,769
|
|
$
|
492,094
|
|
Loans and Deposits
The following table presents a summary of the loan portfolio by
type (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
(Dollars in
thousands)
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
LOAN
PORTFOLIO
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
Construction and land
development * †
|
|
$
|
2,527,062
|
|
$
|
2,316,313
|
|
$
|
2,029,216
|
|
$
|
2,032,731
|
|
$
|
1,947,646
|
|
Investor commercial
real estate*
|
|
|
8,393,630
|
|
|
8,158,457
|
|
|
7,432,503
|
|
|
7,131,192
|
|
|
7,094,109
|
|
Commercial owner
occupied real estate
|
|
|
5,421,725
|
|
|
5,346,583
|
|
|
4,970,116
|
|
|
4,988,490
|
|
|
4,895,189
|
|
Commercial and
industrial, excluding PPP
|
|
|
4,760,355
|
|
|
4,447,279
|
|
|
3,516,485
|
|
|
3,458,520
|
|
|
3,121,625
|
|
Consumer real estate
*
|
|
|
5,505,531
|
|
|
4,988,736
|
|
|
4,806,958
|
|
|
4,733,567
|
|
|
4,748,693
|
|
Consumer/other
|
|
|
1,279,790
|
|
|
1,179,697
|
|
|
928,240
|
|
|
943,243
|
|
|
907,181
|
|
Total loans, excluding
PPP
|
|
|
27,888,093
|
|
|
26,437,065
|
|
|
23,683,518
|
|
|
23,287,743
|
|
|
22,714,443
|
|
PPP loans
|
|
|
47,173
|
|
|
119,362
|
|
|
244,648
|
|
|
501,206
|
|
|
1,318,635
|
|
Total
Loans
|
|
$
|
27,935,266
|
|
$
|
26,556,427
|
|
$
|
23,928,166
|
|
$
|
23,788,949
|
|
$
|
24,033,078
|
|
|
* Single family home
construction-to-permanent loans originated by the Company's
mortgage banking division are included in construction and land
development category until completion. Investor commercial
real estate loans include commercial non-owner occupied real estate
and other income producing property. Consumer real estate
includes consumer owner occupied real estate and home equity
loans.
|
|
† Includes single
family home construction-to-permanent loans of $795.7 million,
$733.7 million, $686.5 million, $665.0 million and $599.4 million
for the quarters ended June 30, 2022, March 31, 2022, December 31,
2021, September 30, 2021 and June 30, 2021,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
(Dollars in
thousands)
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
DEPOSITS
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
Noninterest-bearing
checking
|
|
$
|
14,337,018
|
|
$
|
14,052,332
|
|
$
|
11,498,840
|
|
$
|
11,333,881
|
|
$
|
11,176,338
|
|
Interest-bearing
checking
|
|
|
8,953,332
|
|
|
9,275,208
|
|
|
9,018,987
|
|
|
7,920,236
|
|
|
7,651,433
|
|
Savings
|
|
|
3,616,819
|
|
|
3,479,743
|
|
|
3,350,547
|
|
|
3,201,543
|
|
|
3,051,229
|
|
Money market
|
|
|
9,264,257
|
|
|
9,140,005
|
|
|
8,376,380
|
|
|
8,110,162
|
|
|
8,024,117
|
|
Time
deposits
|
|
|
2,704,425
|
|
|
2,828,542
|
|
|
2,810,075
|
|
|
2,994,736
|
|
|
3,339,252
|
|
Total
Deposits
|
|
$
|
38,875,851
|
|
$
|
38,775,830
|
|
$
|
35,054,829
|
|
$
|
33,560,558
|
|
$
|
33,242,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Deposits
(excludes Time Deposits)
|
|
$
|
36,171,426
|
|
$
|
35,947,288
|
|
$
|
32,244,754
|
|
$
|
30,565,822
|
|
$
|
29,903,117
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
NONPERFORMING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
$
|
20,716
|
|
$
|
19,582
|
|
$
|
18,700
|
|
$
|
23,800
|
|
$
|
16,065
|
|
Accruing loans past due
90 days or more
|
|
|
1,371
|
|
|
22,818
|
|
|
4,612
|
|
|
1,729
|
|
|
559
|
|
Non-acquired OREO and
other nonperforming assets
|
|
|
93
|
|
|
464
|
|
|
590
|
|
|
365
|
|
|
695
|
|
Total non-acquired
nonperforming assets
|
|
|
22,180
|
|
|
42,864
|
|
|
23,902
|
|
|
25,894
|
|
|
17,319
|
|
Acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
|
63,526
|
|
|
59,267
|
|
|
56,718
|
|
|
64,583
|
|
|
69,053
|
|
Accruing loans past due
90 days or more
|
|
|
4,418
|
|
|
12,768
|
|
|
251
|
|
|
89
|
|
|
—
|
|
Acquired OREO and other
nonperforming assets
|
|
|
1,577
|
|
|
3,118
|
|
|
2,875
|
|
|
3,804
|
|
|
4,777
|
|
Total acquired
nonperforming assets
|
|
|
69,521
|
|
|
75,153
|
|
|
59,844
|
|
|
68,476
|
|
|
73,830
|
|
Total nonperforming
assets
|
|
$
|
91,701
|
|
$
|
118,017
|
|
$
|
83,746
|
|
$
|
94,370
|
|
$
|
91,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
ASSET QUALITY
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percentage of loans
|
|
|
1.14 %
|
|
|
1.13 %
|
|
|
1.26 %
|
|
|
1.32 %
|
|
|
1.46 %
|
|
Allowance for credit
losses as a percentage of loans, excluding PPP loans
|
|
|
1.15 %
|
|
|
1.14 %
|
|
|
1.27 %
|
|
|
1.35 %
|
|
|
1.54 %
|
|
Allowance for credit
losses as a percentage of nonperforming loans
|
|
|
355.11 %
|
|
|
262.50 %
|
|
|
375.94 %
|
|
|
348.27 %
|
|
|
408.98 %
|
|
Net charge-offs as a
percentage of average loans (annualized)
|
|
|
0.03 %
|
|
|
0.04 %
|
|
|
0.02 %
|
|
|
0.00 %
|
|
|
0.03 %
|
|
Total nonperforming
assets as a percentage of total assets
|
|
|
0.20 %
|
|
|
0.26 %
|
|
|
0.20 %
|
|
|
0.23 %
|
|
|
0.23 %
|
|
Nonperforming loans as
a percentage of period end loans
|
|
|
0.32 %
|
|
|
0.43 %
|
|
|
0.34 %
|
|
|
0.38 %
|
|
|
0.36 %
|
|
Current Expected Credit Losses ("CECL")
Below is a table showing the roll forward of the ACL and UFC for
the second quarter of 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses ("ACL and UFC")
|
|
|
|
NonPCD
ACL
|
|
PCD
ACL
|
|
Total
ACL
|
|
UFC
|
|
Ending balance
3/31/2022
|
|
$
|
227,829
|
|
$
|
72,567
|
|
$
|
300,396
|
|
$
|
30,368
|
|
ACL - Adjustment for
PCD loans from ACBI
|
|
|
—
|
|
|
4,540
|
|
|
4,540
|
|
|
—
|
|
Charge offs
|
|
|
(3,215)
|
|
|
—
|
|
|
(3,215)
|
|
|
—
|
|
Acquired charge
offs
|
|
|
(637)
|
|
|
(2,311)
|
|
|
(2,948)
|
|
|
—
|
|
Recoveries
|
|
|
1,166
|
|
|
—
|
|
|
1,166
|
|
|
—
|
|
Acquired
recoveries
|
|
|
1,188
|
|
|
1,470
|
|
|
2,658
|
|
|
—
|
|
Provision (recovery)
for credit losses
|
|
|
31,097
|
|
|
(13,986)
|
|
|
17,111
|
|
|
2,175
|
|
Ending balance
6/30/2022
|
|
$
|
257,428
|
|
$
|
62,280
|
|
$
|
319,708
|
|
$
|
32,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end loans
(includes PPP Loans)
|
|
$
|
26,227,674
|
|
$
|
1,707,592
|
|
$
|
27,935,266
|
|
|
N/A
|
|
Reserve to Loans
(includes PPP Loans)
|
|
|
0.98 %
|
|
|
3.65 %
|
|
|
1.14 %
|
|
|
N/A
|
|
Period end loans
(excludes PPP Loans)
|
|
$
|
26,180,501
|
|
$
|
1,707,592
|
|
$
|
27,888,093
|
|
|
N/A
|
|
Reserve to Loans
(excludes PPP Loans)
|
|
|
0.98 %
|
|
|
3.65 %
|
|
|
1.15 %
|
|
|
N/A
|
|
Unfunded commitments
(off balance sheet) *
|
|
|
|
|
|
|
|
|
|
|
$
|
8,204,567
|
|
Reserve to unfunded
commitments (off balance sheet)
|
|
|
|
|
|
|
|
|
|
|
|
0.40 %
|
|
|
* Unfunded
commitments exclude unconditionally cancelable commitments and
letters of credit.
|
Conference Call
The Company will host a conference call to discuss its second
quarter results at 9:00 a.m. Eastern
Time on July 29, 2022.
Callers wishing to participate may call toll-free by dialing
844-200-6205. The number for international participants is
(929) 526-1599. The conference ID number is 322914.
Alternatively, individuals may listen to the live webcast of
the presentation by visiting SouthStateBank.com. An audio
replay of the live webcast is expected to be available by the
evening of July 29, 2022 on the
Investor Relations section of SouthStateBank.com.
SouthState Corporation is a financial services company
headquartered in Winter Haven,
Florida. SouthState Bank, N.A., the Company's
nationally chartered bank subsidiary, provides consumer,
commercial, mortgage and wealth management solutions to more than
one million customers throughout Florida, Alabama, Georgia, the Carolinas and Virginia. The
Bank also serves clients coast to coast through its correspondent
banking division. Additional information is available
at SouthStateBank.com.
Non-GAAP Measures
Statements included in this press release include non-GAAP
measures and should be read along with the accompanying tables that
provide a reconciliation of non-GAAP measures to GAAP
measures. Management believes that these non-GAAP measures
provide additional useful information, which allows readers to
evaluate the ongoing performance of the Company. Non-GAAP
measures should not be considered as an alternative to any measure
of performance or financial condition as promulgated under GAAP,
and investors should consider the company's performance and
financial condition as reported under GAAP and all other relevant
information when assessing the performance or financial condition
of the company. Non-GAAP measures have limitations as
analytical tools, and investors should not consider them in
isolation or as a substitute for analysis of the company's results
or financial condition as reported under GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
Three Months
Ended
|
|
PRE-PROVISION NET
REVENUE ("PPNR") (NON-GAAP)
|
|
Jun. 30,
2022
|
|
|
Mar. 31,
2022
|
|
|
Dec. 31,
2021
|
|
|
Sep. 30,
2021
|
|
|
Jun. 30,
2021
|
|
Net income
(GAAP)
|
|
$
|
119,175
|
|
|
$
|
100,329
|
|
|
$
|
106,846
|
|
|
$
|
122,788
|
|
|
$
|
98,960
|
|
Provision (recovery)
for credit losses
|
|
|
19,286
|
|
|
|
(8,449)
|
|
|
|
(9,157)
|
|
|
|
(38,903)
|
|
|
|
(58,793)
|
|
Tax
provision
|
|
|
32,941
|
|
|
|
27,084
|
|
|
|
28,272
|
|
|
|
30,821
|
|
|
|
28,600
|
|
Merger and branch
consolidation related expense
|
|
|
5,390
|
|
|
|
10,276
|
|
|
|
6,645
|
|
|
|
17,618
|
|
|
|
32,970
|
|
Extinguishment of debt
costs
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11,706
|
|
Securities
gains
|
|
|
—
|
|
|
|
—
|
|
|
|
(2)
|
|
|
|
(64)
|
|
|
|
(36)
|
|
Pre-provision net
revenue (PPNR) (Non-GAAP)
|
|
$
|
176,792
|
|
|
$
|
129,240
|
|
|
$
|
132,604
|
|
|
$
|
132,260
|
|
|
$
|
113,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average asset balance
(GAAP)
|
|
$
|
45,847,789
|
|
|
$
|
42,946,332
|
|
|
$
|
41,359,708
|
|
|
$
|
40,593,766
|
|
|
$
|
39,832,752
|
|
PPNR
ROAA
|
|
|
1.55
|
%
|
|
|
1.22
|
%
|
|
|
1.27
|
%
|
|
|
1.29
|
%
|
|
|
1.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,094
|
|
|
|
72,111
|
|
|
|
70,290
|
|
|
|
70,576
|
|
|
|
71,409
|
|
PPNR per
weighted-average common shares outstanding
|
|
$
|
2.32
|
|
|
$
|
1.79
|
|
|
$
|
1.89
|
|
|
$
|
1.87
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Three Months
Ended
|
|
CORE NET INTEREST
INCOME (NON-GAAP)
|
|
Jun. 30,
2022
|
|
|
Mar. 31,
2022
|
|
|
Dec. 31,
2021
|
|
|
Sep. 30,
2021
|
|
|
Jun. 30,
2021
|
|
Net interest income
(GAAP)
|
|
$
|
314,279
|
|
|
$
|
261,474
|
|
|
$
|
258,104
|
|
|
$
|
259,986
|
|
|
$
|
253,130
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accretion on
acquired loans
|
|
|
12,770
|
|
|
|
6,741
|
|
|
|
7,707
|
|
|
|
5,243
|
|
|
|
6,292
|
|
Total deferred fees on
PPP loans
|
|
|
8
|
|
|
|
983
|
|
|
|
5,655
|
|
|
|
16,369
|
|
|
|
14,232
|
|
Core net interest
income (Non-GAAP)
|
|
$
|
301,501
|
|
|
$
|
253,750
|
|
|
$
|
244,742
|
|
|
$
|
238,374
|
|
|
$
|
232,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN
("NIM"), TAX EQUIVALENT (NON-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
$
|
314,279
|
|
|
$
|
261,474
|
|
|
$
|
258,104
|
|
|
$
|
259,986
|
|
|
$
|
253,130
|
|
Total average
interest-earning assets
|
|
|
40,687,395
|
|
|
|
38,527,023
|
|
|
|
37,031,640
|
|
|
|
36,218,437
|
|
|
|
35,631,605
|
|
NIM, non-tax
equivalent
|
|
|
3.10
|
%
|
|
|
2.75
|
%
|
|
|
2.77
|
%
|
|
|
2.85
|
%
|
|
|
2.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEFRA (included in NIM,
tax equivalent)
|
|
|
2,249
|
|
|
|
1,885
|
|
|
|
1,734
|
|
|
|
1,477
|
|
|
|
1,424
|
|
Net interest income,
tax equivalent (Non-GAAP)
|
|
$
|
316,528
|
|
|
$
|
263,359
|
|
|
$
|
259,838
|
|
|
$
|
261,463
|
|
|
$
|
254,554
|
|
NIM, tax equivalent
(Non-GAAP)
|
|
|
3.12
|
%
|
|
|
2.77
|
%
|
|
|
2.78
|
%
|
|
|
2.86
|
%
|
|
|
2.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
(Dollars in
thousands, except per share data)
|
|
Jun.
30,
|
|
|
Mar.
31,
|
|
|
Dec.
31,
|
|
|
Sep.
30,
|
|
|
Jun.
30,
|
|
|
Jun.
30,
|
|
|
Jun.
30,
|
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
|
2022
|
|
|
2022
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Adjusted Net Income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
119,175
|
|
|
$
|
100,329
|
|
|
$
|
106,846
|
|
|
$
|
122,788
|
|
|
$
|
98,960
|
|
|
$
|
219,504
|
|
|
$
|
245,909
|
|
Securities gains, net
of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
(2)
|
|
|
|
(51)
|
|
|
|
(28)
|
|
|
|
—
|
|
|
|
(28)
|
|
PCL - NonPCD loans and
UFC, net of tax
|
|
|
—
|
|
|
|
13,492
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,492
|
|
|
|
—
|
|
Merger and branch
consolidation related expense, net of tax
|
|
|
4,223
|
|
|
|
8,092
|
|
|
|
5,255
|
|
|
|
14,083
|
|
|
|
25,578
|
|
|
|
12,314
|
|
|
|
33,402
|
|
Extinguishment of debt
cost, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,081
|
|
|
|
—
|
|
|
|
9,081
|
|
Adjusted net income
(non-GAAP)
|
|
$
|
123,398
|
|
|
$
|
121,913
|
|
|
$
|
112,099
|
|
|
$
|
136,820
|
|
|
$
|
133,591
|
|
|
$
|
245,310
|
|
|
$
|
288,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Basic (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic (GAAP)
|
|
$
|
1.58
|
|
|
$
|
1.40
|
|
|
$
|
1.53
|
|
|
$
|
1.75
|
|
|
$
|
1.40
|
|
|
$
|
2.99
|
|
|
$
|
3.47
|
|
Effect to adjust for
securities gains
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
|
|
|
0.19
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.18
|
|
|
|
—
|
|
Effect to adjust for
merger and branch consolidation related expense, net of
tax
|
|
|
0.06
|
|
|
|
0.12
|
|
|
|
0.08
|
|
|
|
0.20
|
|
|
|
0.36
|
|
|
|
0.17
|
|
|
|
0.47
|
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.13
|
|
|
|
—
|
|
|
|
0.13
|
|
Adjusted net income
per common share - Basic (non-GAAP)
|
|
$
|
1.64
|
|
|
$
|
1.71
|
|
|
$
|
1.61
|
|
|
$
|
1.95
|
|
|
$
|
1.89
|
|
|
$
|
3.34
|
|
|
$
|
4.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Diluted (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Diluted (GAAP)
|
|
$
|
1.57
|
|
|
$
|
1.39
|
|
|
$
|
1.52
|
|
|
$
|
1.74
|
|
|
$
|
1.39
|
|
|
$
|
2.96
|
|
|
$
|
3.44
|
|
Effect to adjust for
securities gains
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
|
|
|
0.19
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.18
|
|
|
|
—
|
|
Effect to adjust for
merger and branch consolidation related expense, net of
tax
|
|
|
0.05
|
|
|
|
0.11
|
|
|
|
0.07
|
|
|
|
0.20
|
|
|
|
0.35
|
|
|
|
0.17
|
|
|
|
0.47
|
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.13
|
|
|
|
—
|
|
|
|
0.13
|
|
Adjusted net income
per common share - Diluted (non-GAAP)
|
|
$
|
1.62
|
|
|
$
|
1.69
|
|
|
$
|
1.59
|
|
|
$
|
1.94
|
|
|
$
|
1.87
|
|
|
$
|
3.31
|
|
|
$
|
4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Assets (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (GAAP)
|
|
|
1.04
|
%
|
|
|
0.95
|
%
|
|
|
1.02
|
%
|
|
|
1.20
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
|
|
1.27
|
%
|
Effect to adjust for
securities gains
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
0.13
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.06
|
%
|
|
|
—
|
%
|
Effect to adjust for
merger and branch consolidation related expense, net of
tax
|
|
|
0.04
|
%
|
|
|
0.07
|
%
|
|
|
0.06
|
%
|
|
|
0.14
|
%
|
|
|
0.26
|
%
|
|
|
0.05
|
%
|
|
|
0.17
|
%
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.09
|
%
|
|
|
—
|
%
|
|
|
0.05
|
%
|
Adjusted return on
average assets (non-GAAP)
|
|
|
1.08
|
%
|
|
|
1.15
|
%
|
|
|
1.08
|
%
|
|
|
1.34
|
%
|
|
|
1.35
|
%
|
|
|
1.11
|
%
|
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Equity (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
9.36
|
%
|
|
|
8.24
|
%
|
|
|
8.84
|
%
|
|
|
10.21
|
%
|
|
|
8.38
|
%
|
|
|
8.81
|
%
|
|
|
10.52
|
%
|
Effect to adjust for
securities gains
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
1.11
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.54
|
%
|
|
|
—
|
%
|
Effect to adjust for
merger and branch consolidation related expense, net of
tax
|
|
|
0.33
|
%
|
|
|
0.66
|
%
|
|
|
0.44
|
%
|
|
|
1.16
|
%
|
|
|
2.16
|
%
|
|
|
0.50
|
%
|
|
|
1.43
|
%
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.77
|
%
|
|
|
—
|
%
|
|
|
0.39
|
%
|
Adjusted return on
average common equity (non-GAAP)
|
|
|
9.69
|
%
|
|
|
10.01
|
%
|
|
|
9.28
|
%
|
|
|
11.37
|
%
|
|
|
11.31
|
%
|
|
|
9.85
|
%
|
|
|
12.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Tangible Equity (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
9.36
|
%
|
|
|
8.24
|
%
|
|
|
8.84
|
%
|
|
|
10.21
|
%
|
|
|
8.38
|
%
|
|
|
8.81
|
%
|
|
|
10.52
|
%
|
Effect to adjust for
intangible assets
|
|
|
7.23
|
%
|
|
|
5.73
|
%
|
|
|
5.79
|
%
|
|
|
6.65
|
%
|
|
|
5.74
|
%
|
|
|
6.47
|
%
|
|
|
7.07
|
%
|
Return on average
tangible equity (non-GAAP)
|
|
|
16.59
|
%
|
|
|
13.97
|
%
|
|
|
14.63
|
%
|
|
|
16.86
|
%
|
|
|
14.12
|
%
|
|
|
15.28
|
%
|
|
|
17.59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Tangible Equity (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
9.36
|
%
|
|
|
8.24
|
%
|
|
|
8.84
|
%
|
|
|
10.21
|
%
|
|
|
8.38
|
%
|
|
|
8.81
|
%
|
|
|
10.52
|
%
|
Effect to adjust for
securities gains
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
1.11
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.54
|
%
|
|
|
—
|
%
|
Effect to adjust for
merger and branch consolidation related expense, net of
tax
|
|
|
0.33
|
%
|
|
|
0.66
|
%
|
|
|
0.43
|
%
|
|
|
1.17
|
%
|
|
|
2.16
|
%
|
|
|
0.49
|
%
|
|
|
1.43
|
%
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.77
|
%
|
|
|
—
|
%
|
|
|
0.39
|
%
|
Effect to adjust for
intangible assets
|
|
|
7.46
|
%
|
|
|
6.78
|
%
|
|
|
6.03
|
%
|
|
|
7.30
|
%
|
|
|
7.43
|
%
|
|
|
7.12
|
%
|
|
|
8.12
|
%
|
Adjusted return on
average common tangible equity (non-GAAP)
|
|
|
17.15
|
%
|
|
|
16.79
|
%
|
|
|
15.30
|
%
|
|
|
18.68
|
%
|
|
|
18.74
|
%
|
|
|
16.97
|
%
|
|
|
20.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Efficiency
Ratio (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
54.92
|
%
|
|
|
62.99
|
%
|
|
|
61.27
|
%
|
|
|
64.22
|
%
|
|
|
76.28
|
%
|
|
|
58.66
|
%
|
|
|
68.38
|
%
|
Effect to adjust for
merger and branch consolidation related expense
|
|
|
(1.33)
|
%
|
|
|
(2.94)
|
%
|
|
|
(1.89)
|
%
|
|
|
(5.06)
|
%
|
|
|
(13.38)
|
%
|
|
|
(2.08)
|
%
|
|
|
(7.89)
|
%
|
Adjusted efficiency
ratio
|
|
|
53.59
|
%
|
|
|
60.05
|
%
|
|
|
59.39
|
%
|
|
|
59.16
|
%
|
|
|
62.88
|
%
|
|
|
56.58
|
%
|
|
|
60.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Common Share (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP)
|
|
$
|
66.64
|
|
|
$
|
68.30
|
|
|
$
|
69.27
|
|
|
$
|
68.55
|
|
|
$
|
67.60
|
|
|
|
|
|
|
|
|
|
Effect to adjust for
intangible assets
|
|
|
(27.17)
|
|
|
|
(27.25)
|
|
|
|
(24.65)
|
|
|
|
(24.57)
|
|
|
|
(24.53)
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (non-GAAP)
|
|
$
|
39.47
|
|
|
$
|
41.05
|
|
|
$
|
44.62
|
|
|
$
|
43.98
|
|
|
$
|
43.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity-to-Tangible Assets (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
(GAAP)
|
|
|
10.91
|
%
|
|
|
11.20
|
%
|
|
|
11.45
|
%
|
|
|
11.72
|
%
|
|
|
11.78
|
%
|
|
|
|
|
|
|
|
|
Effect to adjust for
intangible assets
|
|
|
(4.15)
|
%
|
|
|
(4.15)
|
%
|
|
|
(3.76)
|
%
|
|
|
(3.87)
|
%
|
|
|
(3.94)
|
%
|
|
|
|
|
|
|
|
|
Tangible
equity-to-tangible assets (non-GAAP)
|
|
|
6.76
|
%
|
|
|
7.05
|
%
|
|
|
7.69
|
%
|
|
|
7.85
|
%
|
|
|
7.84
|
%
|
|
|
|
|
|
|
|
|
|
Certain prior period
information has been reclassified to conform to the current period
presentation, and these reclassifications had no impact on net
income or equity as previously reported.
|
Footnotes to tables:
- Includes loan accretion (interest) income related to the
discount on acquired loans of $12.8
million, $6.7 million,
$7.7 million, $5.2 million and $6.3
million, respectively, during the five quarters above.
- Adjusted earnings, adjusted return on average assets, adjusted
EPS, and adjusted return on average equity are non-GAAP measures
and exclude the gains or losses on sales of securities, merger and
branch consolidation related expense, initial PCL on nonPCD loans
and unfunded commitments from acquisitions and extinguishment of
debt cost. Management believes that non-GAAP adjusted
measures provide additional useful information that allows readers
to evaluate the ongoing performance of the company. Non-GAAP
measures should not be considered as an alternative to any measure
of performance or financial condition as promulgated under GAAP,
and investors should consider the company's performance and
financial condition as reported under GAAP and all other relevant
information when assessing the performance or financial condition
of the company. Non-GAAP measures have limitations as
analytical tools, and investors should not consider them in
isolation or as a substitute for analysis of the company's results
or financial condition as reported under GAAP. Adjusted
earnings and the related adjusted return measures (non-GAAP)
exclude the following from net income (GAAP) on an after-tax
basis: (a) pre-tax merger and branch consolidation related
expense of $5.4 million, $10.3 million, $6.6
million, $17.6 million and
$33.0 million for the quarters ended
June 30, 2022, March 31, 2022, December
31, 2021, September 30, 2021
and June 30, 2021, respectively; and
(b) net securities gains of $2,000,
$64,000, and $36,000 for the quarters ended December 31, 2021, September 30, 2021, and June 30, 2021, respectively; (c) initial PCL on
nonPCD loans and unfunded commitments acquired from ACBI of $17.1
million for the quarter ended March 31, 2022; and (d)
extinguishment of debt cost of $11.7 million for the quarter ended
June 30, 2021.
- The tangible measures are non-GAAP measures and exclude the
effect of period end or average balance of intangible assets.
The tangible returns on equity and common equity measures also add
back the after-tax amortization of intangibles to GAAP basis net
income. Management believes that these non-GAAP tangible
measures provide additional useful information, particularly since
these measures are widely used by industry analysts for companies
with prior merger and acquisition activities. Non-GAAP
measures should not be considered as an alternative to any measure
of performance or financial condition as promulgated under GAAP,
and investors should consider the company's performance and
financial condition as reported under GAAP and all other relevant
information when assessing the performance or financial condition
of the company. Non-GAAP measures have limitations as
analytical tools, and investors should not consider them in
isolation or as a substitute for analysis of the company's results
or financial condition as reported under GAAP. The sections titled
"Reconciliation of Non-GAAP to GAAP" provide tables that reconcile
non-GAAP measures to GAAP.
- Adjusted efficiency ratio is calculated by taking the
noninterest expense excluding merger and branch consolidation
related expense and amortization of intangible assets, divided by
net interest income and noninterest income excluding securities
gains (losses). The pre-tax amortization expenses of intangible
assets were $8.8 million, $8.5 million, $8.5 million, $8.5 million
and $9.0 million, for the quarters ended June 30, 2022, March 31,
2022, December 31, 2021, September 30, 2021 and June 30, 2021,
respectively.
- The dividend payout ratio is calculated by dividing total
dividends paid during the period by the total net income for the
same period.
- June 30, 2022 ratios are estimated and may be subject to change
pending the final filing of the FR Y-9C; all other periods are
presented as filed.
- Loan data excludes mortgage loans held for sale.
Cautionary Statement Regarding 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 Securities Exchange Act of 1934. Forward-looking
statements are based on, among other things, management's beliefs,
assumptions, current expectations, estimates and projections about
the financial services industry, the economy and SouthState. Words
and phrases such as "may," "approximately," "continue," "should,"
"expects," "projects," "anticipates," "is likely," "look ahead,"
"look forward," "believes," "will," "intends," "estimates,"
"strategy," "plan," "could," "potential," "possible" and variations
of such words and similar expressions are intended to identify such
forward-looking statements.
SouthState cautions readers that forward-looking statements are
subject to certain risks, uncertainties and assumptions that are
difficult to predict with regard to, among other things, timing,
extent, likelihood and degree of occurrence, which could cause
actual results to differ materially from anticipated results. Such
risks, uncertainties and assumptions, include, among others, the
following: (1) economic downturn risk, potentially resulting in
deterioration in the credit markets, inflation, greater than
expected noninterest expenses, excessive loan losses and other
negative consequences, which risks could be exacerbated by
potential continued negative economic developments resulting from
the Covid19 pandemic, or from federal spending cuts and/or one or
more federal budget-related impasses or actions; (2) interest rate
risk primarily resulting from the interest rate environment, rising
interest rates, and their impact on the Bank's earnings, including
from the correspondent and mortgage divisions, housing demand, the
market value of the bank's loan and securities portfolios, and the
market value of SouthState's equity; (3) risks related to the
merger and integration of SouthState and Atlantic Capital
including, among others, (i) the risk that the cost savings and any
revenue synergies from the merger may not be fully realized or may
take longer than anticipated to be realized, (ii) the risk that the
integration of Atlantic Capital's operations into SouthState's
operations will be materially delayed or will be more costly or
difficult than expected or that the parties are otherwise unable to
successfully integrate Atlantic Capital's businesses into
SouthState's businesses, (iii) the amount of the costs, fees,
expenses and charges related to the merger, and (iv) reputational
risk and the reaction of each company's customers, suppliers,
employees or other business partners to the merger; (4) risks
relating to the continued impact of the Covid19 pandemic on the
Company, including possible impact to the Company and its employees
from contacting Covid19, and to efficiencies and the control
environment due to the changing work environment and to our results
of operations due to government stimulus and other interventions to
mitigate the impact of the pandemic; (5) the impact of increasing
digitization of the banking industry and movement of customers to
on-line platforms, and the possible impact on the Bank's results of
operations, customer base, expenses, suppliers and operations; (6)
controls and procedures risk, including the potential failure or
circumvention of our controls and procedures or failure to comply
with regulations related to controls and procedures; (7) potential
deterioration in real estate values; (8) the impact of competition
with other financial institutions, including pricing pressures
(including those resulting from the CARES Act) and the resulting
impact, including as a result of compression to net interest
margin; (9) risks relating to the ability to retain our culture and
attract and retain qualified people; (10) credit risks associated
with an obligor's failure to meet the terms of any contract with
the bank or otherwise fail to perform as agreed under the terms of
any loan-related document; (11) risks related to the ability of the
company to pursue its strategic plans which depend upon certain
growth goals in our lines of business; (12) liquidity risk
affecting the Bank's ability to meet its obligations when they come
due; (13) risks associated with an anticipated increase in
SouthState's investment securities portfolio, including risks
associated with acquiring and holding investment securities or
potentially determining that the amount of investment securities
SouthState desires to acquire are not available on terms acceptable
to SouthState; (14) price risk focusing on changes in market
factors that may affect the value of traded instruments in
"mark-to-market" portfolios; (15) transaction risk arising from
problems with service or product delivery; (16) compliance risk
involving risk to earnings or capital resulting from violations of
or nonconformance with laws, rules, regulations, prescribed
practices, or ethical standards; (17) regulatory change risk
resulting from new laws, rules, regulations, accounting principles,
proscribed practices or ethical standards, including, without
limitation, the possibility that regulatory agencies may require
higher levels of capital above the current regulatory-mandated
minimums and including the impact of the CARES Act, the Consumer
Financial Protection Bureau regulations, and the possibility of
changes in accounting standards, policies, principles and
practices, including changes in accounting principles relating to
loan loss recognition (CECL); (18) strategic risk resulting from
adverse business decisions or improper implementation of business
decisions; (19) reputation risk that adversely affects earnings or
capital arising from negative public opinion; (20) cybersecurity
risk related to the dependence of SouthState on internal computer
systems and the technology of outside service providers, as well as
the potential impacts of internal or external security breaches,
which may subject the company to potential business disruptions or
financial losses resulting from deliberate attacks or unintentional
events; (21) reputational and operational risks associated with
environment, social and governance (ESG) matters, including the
impact of recently issued proposed regulatory guidance and
regulation relating to climate change; (22) greater than expected
noninterest expenses; (23) excessive loan losses; (24) potential
deposit attrition, higher than expected costs, customer loss and
business disruption associated with the Atlantic Capital
integration, and potential difficulties in maintaining
relationships with key personnel; (25) reputational risk and
possible higher than estimated reduced revenue from announced
changes in the Bank's consumer overdraft programs; (26) the risks
of fluctuations in market prices for SouthState common stock that
may or may not reflect economic condition or performance of
SouthState; (27) the payment of dividends on SouthState common
stock, which is subject to legal and regulatory limitations as well
as the discretion of the board of directors of SouthState,
SouthState's performance and other factors; (28) ownership dilution
risk associated with potential acquisitions in which SouthState's
stock may be issued as consideration for an acquired company; (29)
operational, technological, cultural, regulatory, legal, credit and
other risks associated with the exploration, consummation and
integration of potential future acquisitions, whether involving
stock or cash consideration; (30) major catastrophes such as
hurricanes, tornados, earthquakes, floods or other natural or human
disasters, including infectious disease outbreaks, such as the
ongoing Covid19 pandemic, and the related disruption to local,
regional and global economic activity and financial markets, and
the impact that any of the foregoing may have on SouthState and its
customers and other constituencies; (31) terrorist activities risk
that results in loss of consumer confidence and economic
disruptions; and (32) other factors that may affect future results
of SouthState, as disclosed in SouthState's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form
8-K, filed by SouthState with the U.S. Securities and Exchange
Commission ("SEC") and available on the SEC's website at
http://www.sec.gov, any of which could cause actual results to
differ materially from future results expressed, implied or
otherwise anticipated by such forward-looking statements.
All forward-looking statements speak only as of the date they
are made and are based on information available at that time.
SouthState does not undertake any obligation to update or otherwise
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by
federal securities laws. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance on such statements.
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SOURCE SouthState Corporation