WINTER
HAVEN, Fla., Jan. 25,
2024 /PRNewswire/ -- SouthState Corporation
(NYSE: SSB) today released its unaudited results of operations and
other financial information for the three-month and twelve-month
periods ended December 31, 2023.
"We ended a year that demonstrated the resilience of the
SouthState deposit franchise in the face of unprecedented change.
In addition, loans grew 7% and we materially built our reserve",
commented John C. Corbett,
SouthState's Chief Executive Officer. "While we remain
cautious of the lag effects of the recent rate increases, we see
tremendous opportunity coming out of the cycle. Since the pandemic,
Florida has grown by over one
million people and SouthState benefits from operating in 4 of the 5
fastest growing states in the country. We are in a great position
to deliver outsized results for our shareholders, and I want to
thank our team for their hard work and service to our clients
during 2023."
Highlights of the fourth quarter of 2023 include:
Returns
- Reported Diluted Earnings per Share ("EPS") of $1.39; Adjusted Diluted EPS (Non-GAAP) of
$1.67
- Net Income of $106.8 million;
Adjusted Net Income (Non-GAAP) of $128.3
million
- Return on Average Common Equity of 8.0%; Return on Average
Tangible Common Equity (Non-GAAP) of 13.5% and Adjusted Return on
Average Tangible Common Equity (Non-GAAP) of 16.1%*
- Return on Average Assets ("ROAA") of 0.94% and Adjusted ROAA
(Non-GAAP) of 1.13%*
- Pre-Provision Net Revenue ("PPNR") per Weighted Average Diluted
Share (Non-GAAP) of $2.27
- Book Value per Share of $72.78;
Tangible Book Value ("TBV") per Share (Non-GAAP) of $46.32
∗ Annualized percentages
Performance
- Net Interest Income of $354
million; Core Net Interest Income (excluding loan accretion)
(Non-GAAP) of $350 million
- Net Interest Margin ("NIM"), non-tax equivalent of 3.47% and
tax equivalent (Non-GAAP) of 3.48%
- Net charge-offs of $7.3 million,
or 0.09% annualized; $9.9 million
Provision for Credit Losses ("PCL"), including release for unfunded
commitments; total allowance for credit losses ("ACL") plus reserve
for unfunded commitments of 1.58%; year-to-date net charge-offs of
$24.9 million, or 0.08%
- Noninterest Income of $65
million, down $7 million
compared to the prior quarter, primarily due to a decrease in
correspondent banking and capital markets income; Noninterest
Income represented 0.58% of average assets for the fourth quarter
of 2023
- Recorded FDIC special assessment expense of $26 million
- Efficiency Ratio of 63% and Adjusted Efficiency Ratio
(Non-GAAP) of 57%
Balance Sheet
- Loans increased $372 million, or
5% annualized, led by consumer real estate; ending loan to deposit
ratio of 87%
- Deposits increased $114 million,
or 1% annualized, despite a $339
million decline in brokered CDs; excluding brokered CDs,
deposits increased $453 million, or
5% annualized, from prior quarter
- Total deposit cost of 1.60%, up 0.16% from prior quarter,
resulting in a 30% cycle-to-date beta
- Repurchased a total of 100,000 shares during 4Q 2023 at a
weighted average price of $67.45
- Strong capital position with Tangible Common Equity, Total
Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity
ratios of 8.2%, 14.1%, 9.4%, and 11.8%, respectively†
† Preliminary
Subsequent Events
- The Board of Directors of the Company declared a quarterly cash
dividend on its common stock of $0.52
per share, payable on February 16,
2024 to shareholders of record as of February 9, 2024
Financial Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(Dollars in
thousands, except per share data)
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Dec.
31,
|
|
Dec.
31,
|
|
INCOME
STATEMENT
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees (1)
|
|
$
|
459,880
|
|
$
|
443,805
|
|
$
|
419,355
|
|
$
|
393,366
|
|
$
|
359,552
|
|
$
|
1,716,405
|
|
$
|
1,178,026
|
|
Investment
securities, trading securities, federal funds sold and
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchased under
agreements to resell
|
|
|
55,555
|
|
|
56,704
|
|
|
58,698
|
|
|
57,043
|
|
|
64,337
|
|
|
228,001
|
|
|
218,999
|
|
Total interest
income
|
|
|
515,435
|
|
|
500,509
|
|
|
478,053
|
|
|
450,409
|
|
|
423,889
|
|
|
1,944,406
|
|
|
1,397,025
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
149,584
|
|
|
133,944
|
|
|
100,787
|
|
|
55,942
|
|
|
19,945
|
|
|
440,257
|
|
|
36,984
|
|
Federal
funds purchased, securities sold under agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to repurchase, and
other borrowings
|
|
|
11,620
|
|
|
11,194
|
|
|
15,523
|
|
|
13,204
|
|
|
7,940
|
|
|
51,541
|
|
|
24,370
|
|
Total interest
expense
|
|
|
161,204
|
|
|
145,138
|
|
|
116,310
|
|
|
69,146
|
|
|
27,885
|
|
|
491,798
|
|
|
61,354
|
|
Net Interest
Income
|
|
|
354,231
|
|
|
355,371
|
|
|
361,743
|
|
|
381,263
|
|
|
396,004
|
|
|
1,452,608
|
|
|
1,335,671
|
|
Provision for
credit losses
|
|
|
9,893
|
|
|
32,709
|
|
|
38,389
|
|
|
33,091
|
|
|
47,142
|
|
|
114,082
|
|
|
81,855
|
|
Net Interest Income
after Provision for Credit Losses
|
|
|
344,338
|
|
|
322,662
|
|
|
323,354
|
|
|
348,172
|
|
|
348,862
|
|
|
1,338,526
|
|
|
1,253,816
|
|
Noninterest
Income
|
|
|
65,489
|
|
|
72,848
|
|
|
77,214
|
|
|
71,355
|
|
|
63,392
|
|
|
286,906
|
|
|
309,247
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expense
|
|
|
245,774
|
|
|
238,042
|
|
|
240,818
|
|
|
231,093
|
|
|
227,957
|
|
|
955,727
|
|
|
898,813
|
|
Merger, branch
consolidation and severance related expense
|
|
|
1,778
|
|
|
164
|
|
|
1,808
|
|
|
9,412
|
|
|
1,542
|
|
|
13,162
|
|
|
30,888
|
|
FDIC special
assessment
|
|
|
25,691
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,691
|
|
|
—
|
|
Total noninterest
expense
|
|
|
273,243
|
|
|
238,206
|
|
|
242,626
|
|
|
240,505
|
|
|
229,499
|
|
|
994,580
|
|
|
929,701
|
|
Income before Income
Taxes Provision
|
|
|
136,584
|
|
|
157,304
|
|
|
157,942
|
|
|
179,022
|
|
|
182,755
|
|
|
630,852
|
|
|
633,362
|
|
Income taxes
provision
|
|
|
29,793
|
|
|
33,160
|
|
|
34,495
|
|
|
39,096
|
|
|
39,253
|
|
|
136,544
|
|
|
137,313
|
|
Net
Income
|
|
$
|
106,791
|
|
$
|
124,144
|
|
$
|
123,447
|
|
$
|
139,926
|
|
$
|
143,502
|
|
$
|
494,308
|
|
$
|
496,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(GAAP)
|
|
$
|
106,791
|
|
$
|
124,144
|
|
$
|
123,447
|
|
$
|
139,926
|
|
$
|
143,502
|
|
$
|
494,308
|
|
$
|
496,049
|
|
Securities losses
(gains), net of tax
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(35)
|
|
|
—
|
|
|
(33)
|
|
|
(24)
|
|
Initial provision for
credit losses - NonPCD loans and UFC from ACBI, net of
tax
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,492
|
|
Merger, branch
consolidation and severance related expense, net of tax
|
|
|
1,391
|
|
|
130
|
|
|
1,414
|
|
|
7,356
|
|
|
1,211
|
|
|
10,291
|
|
|
24,163
|
|
FDIC special
assessment, net of tax
|
|
|
20,087
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,087
|
|
|
—
|
|
Adjusted Net Income
(non-GAAP)
|
|
$
|
128,271
|
|
$
|
124,274
|
|
$
|
124,861
|
|
$
|
147,247
|
|
$
|
144,713
|
|
$
|
524,653
|
|
$
|
533,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
|
1.40
|
|
$
|
1.63
|
|
$
|
1.62
|
|
$
|
1.84
|
|
$
|
1.90
|
|
$
|
6.50
|
|
$
|
6.65
|
|
Diluted
earnings per common share
|
|
$
|
1.39
|
|
$
|
1.62
|
|
$
|
1.62
|
|
$
|
1.83
|
|
$
|
1.88
|
|
$
|
6.46
|
|
$
|
6.60
|
|
Adjusted
net income per common share - Basic (non-GAAP) (2)
|
|
$
|
1.69
|
|
$
|
1.63
|
|
$
|
1.64
|
|
$
|
1.94
|
|
$
|
1.91
|
|
$
|
6.90
|
|
$
|
7.16
|
|
Adjusted
net income per common share - Diluted (non-GAAP) (2)
|
|
$
|
1.67
|
|
$
|
1.62
|
|
$
|
1.63
|
|
$
|
1.93
|
|
$
|
1.90
|
|
$
|
6.86
|
|
$
|
7.10
|
|
Dividends
per common share
|
|
$
|
0.52
|
|
$
|
0.52
|
|
$
|
0.50
|
|
$
|
0.50
|
|
$
|
0.50
|
|
$
|
2.04
|
|
$
|
1.98
|
|
Basic
weighted-average common shares outstanding
|
|
|
76,100,187
|
|
|
76,139,170
|
|
|
76,057,977
|
|
|
75,902,440
|
|
|
75,639,640
|
|
|
76,050,730
|
|
|
74,550,708
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,634,100
|
|
|
76,571,430
|
|
|
76,417,537
|
|
|
76,388,954
|
|
|
76,326,777
|
|
|
76,479,557
|
|
|
75,181,305
|
|
Effective
tax rate
|
|
|
21.81 %
|
|
|
21.08 %
|
|
|
21.84 %
|
|
|
21.84 %
|
|
|
21.48 %
|
|
|
21.64 %
|
|
|
21.68 %
|
|
Performance and Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
0.94
|
%
|
|
1.10
|
%
|
|
1.11
|
%
|
|
1.29
|
%
|
|
1.28
|
%
|
1.11
|
%
|
1.12
|
%
|
|
Adjusted return on
average assets (annualized) (non-GAAP) (2)
|
|
|
1.13
|
%
|
|
1.10
|
%
|
|
1.12
|
%
|
|
1.35
|
%
|
|
1.29
|
%
|
1.17
|
%
|
1.20
|
%
|
|
Return on average
common equity (annualized)
|
|
|
7.99
|
%
|
|
9.24
|
%
|
|
9.34
|
%
|
|
10.96
|
%
|
|
11.41
|
%
|
9.37
|
%
|
9.84
|
%
|
|
Adjusted return on
average common equity (annualized) (non-GAAP) (2)
|
|
|
9.60
|
%
|
|
9.25
|
%
|
|
9.45
|
%
|
|
11.53
|
%
|
|
11.50
|
%
|
9.94
|
%
|
10.59
|
%
|
|
Return on average
tangible common equity (annualized) (non-GAAP) (3)
|
|
|
13.53
|
%
|
|
15.52
|
%
|
|
15.81
|
%
|
|
18.81
|
%
|
|
20.17
|
%
|
15.87
|
%
|
17.16
|
%
|
|
Adjusted return on
average tangible common equity (annualized) (non-GAAP) (2)
(3)
|
|
|
16.12
|
%
|
|
15.54
|
%
|
|
15.98
|
%
|
|
19.75
|
%
|
|
20.33
|
%
|
16.80
|
%
|
18.40
|
%
|
|
Efficiency ratio (tax
equivalent)
|
|
|
63.43
|
%
|
|
54.00
|
%
|
|
53.59
|
%
|
|
51.41
|
%
|
|
47.96
|
%
|
55.50
|
%
|
54.21
|
%
|
|
Adjusted efficiency
ratio (non-GAAP) (4)
|
|
|
56.89
|
%
|
|
53.96
|
%
|
|
53.18
|
%
|
|
49.34
|
%
|
|
47.63
|
%
|
53.27
|
%
|
52.34
|
%
|
|
Dividend payout ratio
(5)
|
|
|
37.01
|
%
|
|
31.84
|
%
|
|
30.75
|
%
|
|
27.09
|
%
|
|
26.40
|
%
|
31.34
|
%
|
29.54
|
%
|
|
Book value per common
share
|
|
$
|
72.78
|
|
$
|
68.81
|
|
$
|
69.61
|
|
$
|
69.19
|
|
$
|
67.04
|
|
|
|
|
|
|
Tangible book value per
common share (non-GAAP) (3)
|
|
$
|
46.32
|
|
$
|
42.26
|
|
$
|
42.96
|
|
$
|
42.40
|
|
$
|
40.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
|
|
|
12.3
|
%
|
|
11.6
|
%
|
|
11.8
|
%
|
|
11.7
|
%
|
|
11.6
|
%
|
|
|
|
|
|
Tangible
equity-to-tangible assets (non-GAAP) (3)
|
|
|
8.2
|
%
|
|
7.5
|
%
|
|
7.6
|
%
|
|
7.5
|
%
|
|
7.2
|
%
|
|
|
|
|
|
Tier 1 leverage
(6)
|
|
|
9.4
|
%
|
|
9.3
|
%
|
|
9.2
|
%
|
|
9.1
|
%
|
|
8.7
|
%
|
|
|
|
|
|
Tier 1 common equity
(6)
|
|
|
11.8
|
%
|
|
11.5
|
%
|
|
11.3
|
%
|
|
11.1
|
%
|
|
11.0
|
%
|
|
|
|
|
|
Tier 1 risk-based
capital (6)
|
|
|
11.8
|
%
|
|
11.5
|
%
|
|
11.3
|
%
|
|
11.1
|
%
|
|
11.0
|
%
|
|
|
|
|
|
Total risk-based
capital (6)
|
|
|
14.1
|
%
|
|
13.8
|
%
|
|
13.5
|
%
|
|
13.3
|
%
|
|
13.0
|
%
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
(Dollars in
thousands, except per share and share data)
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
BALANCE
SHEET
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
$
|
510,922
|
|
$
|
514,917
|
|
$
|
552,900
|
|
$
|
558,158
|
|
$
|
548,387
|
|
Federal
funds sold and interest-earning deposits with banks
|
|
|
487,955
|
|
|
814,220
|
|
|
960,849
|
|
|
1,438,504
|
|
|
764,176
|
|
Cash and cash
equivalents
|
|
|
998,877
|
|
|
1,329,137
|
|
|
1,513,749
|
|
|
1,996,662
|
|
|
1,312,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities, at
fair value
|
|
|
31,321
|
|
|
114,154
|
|
|
56,580
|
|
|
16,039
|
|
|
31,263
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
held to maturity
|
|
|
2,487,440
|
|
|
2,533,713
|
|
|
2,585,155
|
|
|
2,636,673
|
|
|
2,683,241
|
|
Securities
available for sale, at fair value
|
|
|
4,784,388
|
|
|
4,623,618
|
|
|
4,949,334
|
|
|
5,159,999
|
|
|
5,326,822
|
|
Other
investments
|
|
|
192,043
|
|
|
187,152
|
|
|
196,728
|
|
|
217,991
|
|
|
179,717
|
|
Total investment securities
|
|
|
7,463,871
|
|
|
7,344,483
|
|
|
7,731,217
|
|
|
8,014,663
|
|
|
8,189,780
|
|
Loans held for
sale
|
|
|
50,888
|
|
|
27,443
|
|
|
42,951
|
|
|
27,289
|
|
|
28,968
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased credit
deteriorated
|
|
|
1,108,813
|
|
|
1,171,543
|
|
|
1,269,983
|
|
|
1,325,400
|
|
|
1,429,731
|
|
Purchased non-credit
deteriorated
|
|
|
4,796,913
|
|
|
5,064,254
|
|
|
5,275,913
|
|
|
5,620,290
|
|
|
5,943,092
|
|
Non-acquired
|
|
|
26,482,763
|
|
|
25,780,875
|
|
|
24,990,889
|
|
|
23,750,452
|
|
|
22,805,039
|
|
Less
allowance for credit losses
|
|
|
(456,573)
|
|
|
(447,956)
|
|
|
(427,392)
|
|
|
(370,645)
|
|
|
(356,444)
|
|
Loans, net
|
|
|
31,931,916
|
|
|
31,568,716
|
|
|
31,109,393
|
|
|
30,325,497
|
|
|
29,821,418
|
|
Premises and equipment,
net
|
|
|
519,197
|
|
|
516,583
|
|
|
518,353
|
|
|
517,146
|
|
|
520,635
|
|
Bank owned life
insurance
|
|
|
991,454
|
|
|
984,881
|
|
|
979,494
|
|
|
967,750
|
|
|
964,708
|
|
Mortgage servicing
rights
|
|
|
85,164
|
|
|
89,476
|
|
|
87,539
|
|
|
85,406
|
|
|
86,610
|
|
Core deposit and other
intangibles
|
|
|
88,776
|
|
|
95,094
|
|
|
102,256
|
|
|
109,603
|
|
|
116,450
|
|
Goodwill
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
1,923,106
|
|
|
1,923,106
|
|
Other assets
|
|
|
817,454
|
|
|
996,055
|
|
|
875,694
|
|
|
940,666
|
|
|
923,195
|
|
Total assets
|
|
$
|
44,902,024
|
|
$
|
44,989,128
|
|
$
|
44,940,332
|
|
$
|
44,923,827
|
|
$
|
43,918,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
10,649,274
|
|
$
|
11,158,431
|
|
$
|
11,489,483
|
|
$
|
12,422,583
|
|
$
|
13,168,656
|
|
Interest-bearing
|
|
|
26,399,635
|
|
|
25,776,767
|
|
|
25,252,395
|
|
|
23,979,009
|
|
|
23,181,967
|
|
Total deposits
|
|
|
37,048,909
|
|
|
36,935,198
|
|
|
36,741,878
|
|
|
36,401,592
|
|
|
36,350,623
|
|
Federal funds purchased
and securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under
agreements to repurchase
|
|
|
489,185
|
|
|
513,304
|
|
|
581,446
|
|
|
544,108
|
|
|
556,417
|
|
Other
borrowings
|
|
|
491,904
|
|
|
391,997
|
|
|
792,090
|
|
|
1,292,182
|
|
|
392,275
|
|
Reserve for unfunded
commitments
|
|
|
56,303
|
|
|
62,347
|
|
|
63,399
|
|
|
85,068
|
|
|
67,215
|
|
Other
liabilities
|
|
|
1,282,625
|
|
|
1,855,295
|
|
|
1,471,509
|
|
|
1,351,873
|
|
|
1,477,239
|
|
Total liabilities
|
|
|
39,368,926
|
|
|
39,758,141
|
|
|
39,650,322
|
|
|
39,674,823
|
|
|
38,843,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock - $2.50 par value; authorized 160,000,000 shares
|
|
|
190,055
|
|
|
190,043
|
|
|
189,990
|
|
|
189,649
|
|
|
189,261
|
|
Surplus
|
|
|
4,240,413
|
|
|
4,238,753
|
|
|
4,228,910
|
|
|
4,224,503
|
|
|
4,215,712
|
|
Retained
earnings
|
|
|
1,685,166
|
|
|
1,618,080
|
|
|
1,533,508
|
|
|
1,448,636
|
|
|
1,347,042
|
|
Accumulated other comprehensive loss
|
|
|
(582,536)
|
|
|
(815,889)
|
|
|
(662,398)
|
|
|
(613,784)
|
|
|
(677,088)
|
|
Total shareholders' equity
|
|
|
5,533,098
|
|
|
5,230,987
|
|
|
5,290,010
|
|
|
5,249,004
|
|
|
5,074,927
|
|
Total liabilities and shareholders' equity
|
|
$
|
44,902,024
|
|
$
|
44,989,128
|
|
$
|
44,940,332
|
|
$
|
44,923,827
|
|
$
|
43,918,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
|
|
76,022,039
|
|
|
76,017,366
|
|
|
75,995,979
|
|
|
75,859,665
|
|
|
75,704,563
|
|
Net Interest Income and Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Dec. 31,
2023
|
|
Sep. 30,
2023
|
|
Dec. 31,
2022
|
|
(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
|
|
$
|
814,244
|
|
$
|
10,029
|
|
4.89 %
|
|
$
|
822,805
|
|
$
|
10,831
|
|
5.22 %
|
|
$
|
1,849,877
|
|
$
|
16,491
|
|
3.54 %
|
|
Investment
securities
|
|
|
7,382,800
|
|
|
45,526
|
|
2.45 %
|
|
|
7,714,079
|
|
|
45,873
|
|
2.36 %
|
|
|
8,286,894
|
|
|
47,846
|
|
2.29 %
|
|
Loans held for
sale
|
|
|
28,878
|
|
|
552
|
|
7.58 %
|
|
|
34,736
|
|
|
517
|
|
5.90 %
|
|
|
25,633
|
|
|
401
|
|
6.21 %
|
|
Total loans, excluding
PPP
|
|
|
32,234,772
|
|
|
459,316
|
|
5.65 %
|
|
|
31,799,469
|
|
|
443,275
|
|
5.53 %
|
|
|
29,480,843
|
|
|
359,120
|
|
4.83 %
|
|
Total PPP
loans
|
|
|
4,683
|
|
|
12
|
|
1.02 %
|
|
|
5,291
|
|
|
13
|
|
0.97 %
|
|
|
12,489
|
|
|
31
|
|
0.98 %
|
|
Total loans held for
investment
|
|
|
32,239,455
|
|
|
459,328
|
|
5.65 %
|
|
|
31,804,760
|
|
|
443,288
|
|
5.53 %
|
|
|
29,493,332
|
|
|
359,151
|
|
4.83 %
|
|
Total interest-earning
assets
|
|
|
40,465,377
|
|
|
515,435
|
|
5.05 %
|
|
|
40,376,380
|
|
|
500,509
|
|
4.92 %
|
|
|
39,655,736
|
|
|
423,889
|
|
4.24 %
|
|
Noninterest-earning
assets
|
|
|
4,572,255
|
|
|
|
|
|
|
|
4,464,939
|
|
|
|
|
|
|
|
4,774,158
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
45,037,632
|
|
|
|
|
|
|
$
|
44,841,319
|
|
|
|
|
|
|
$
|
44,429,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities ("IBL"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money
market accounts
|
|
$
|
18,957,647
|
|
$
|
107,994
|
|
2.26 %
|
|
$
|
18,291,300
|
|
$
|
93,465
|
|
2.03 %
|
|
$
|
17,044,865
|
|
$
|
16,901
|
|
0.39 %
|
|
Savings
deposits
|
|
|
2,680,065
|
|
|
1,888
|
|
0.28 %
|
|
|
2,845,250
|
|
|
1,919
|
|
0.27 %
|
|
|
3,536,330
|
|
|
1,021
|
|
0.11 %
|
|
Certificates and other
time deposits
|
|
|
4,294,555
|
|
|
39,702
|
|
3.67 %
|
|
|
4,413,855
|
|
|
38,560
|
|
3.47 %
|
|
|
2,444,361
|
|
|
2,023
|
|
0.33 %
|
|
Federal funds
purchased
|
|
|
256,672
|
|
|
3,453
|
|
5.34 %
|
|
|
236,732
|
|
|
3,128
|
|
5.24 %
|
|
|
186,232
|
|
|
1,694
|
|
3.61 %
|
|
Repurchase
agreements
|
|
|
265,839
|
|
|
1,458
|
|
2.18 %
|
|
|
303,339
|
|
|
1,163
|
|
1.52 %
|
|
|
363,336
|
|
|
253
|
|
0.28 %
|
|
Other
borrowings
|
|
|
438,701
|
|
|
6,709
|
|
6.07 %
|
|
|
456,187
|
|
|
6,903
|
|
6.00 %
|
|
|
435,806
|
|
|
5,993
|
|
5.46 %
|
|
Total interest-bearing
liabilities
|
|
|
26,893,479
|
|
|
161,204
|
|
2.38 %
|
|
|
26,546,663
|
|
|
145,138
|
|
2.17 %
|
|
|
24,010,930
|
|
|
27,885
|
|
0.46 %
|
|
Noninterest-bearing
liabilities ("Non-IBL")
|
|
|
12,844,262
|
|
|
|
|
|
|
|
12,965,744
|
|
|
|
|
|
|
|
15,427,380
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
5,299,891
|
|
|
|
|
|
|
|
5,328,912
|
|
|
|
|
|
|
|
4,991,584
|
|
|
|
|
|
|
Total Non-IBL and
shareholders' equity
|
|
|
18,144,153
|
|
|
|
|
|
|
|
18,294,656
|
|
|
|
|
|
|
|
20,418,964
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
45,037,632
|
|
|
|
|
|
|
$
|
44,841,319
|
|
|
|
|
|
|
$
|
44,429,894
|
|
|
|
|
|
|
Net Interest Income
and Margin (Non-Tax Equivalent)
|
|
|
|
|
$
|
354,231
|
|
3.47 %
|
|
|
|
|
$
|
355,371
|
|
3.49 %
|
|
|
|
|
$
|
396,004
|
|
3.96 %
|
|
Net Interest Margin
(Tax Equivalent) (non-GAAP)
|
|
|
|
|
|
|
|
3.48 %
|
|
|
|
|
|
|
|
3.50 %
|
|
|
|
|
|
|
|
3.99 %
|
|
Total Deposit Cost
(without Debt and Other Borrowings)
|
|
|
|
|
|
|
|
1.60 %
|
|
|
|
|
|
|
|
1.44 %
|
|
|
|
|
|
|
|
0.21 %
|
|
Overall Cost of
Funds (including Demand Deposits)
|
|
|
|
|
|
|
|
1.69 %
|
|
|
|
|
|
|
|
1.52 %
|
|
|
|
|
|
|
|
0.29 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accretion on
Acquired Loans (1)
|
|
|
|
|
$
|
3,870
|
|
|
|
|
|
|
$
|
4,053
|
|
|
|
|
|
|
$
|
7,350
|
|
|
|
Tax Equivalent
("TE") Adjustment
|
|
|
|
|
$
|
659
|
|
|
|
|
|
|
$
|
646
|
|
|
|
|
|
|
$
|
2,397
|
|
|
|
|
(1) The remaining loan
discount on acquired loans to be accreted into loan interest income
totals $51.3 million as of December 31, 2023.
|
Noninterest Income and Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Dec.
31,
|
|
Dec.
31,
|
|
(Dollars in
thousands)
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on
deposit accounts
|
|
$
|
33,225
|
|
$
|
32,830
|
|
$
|
33,101
|
|
$
|
29,859
|
|
$
|
33,612
|
|
$
|
129,015
|
|
$
|
124,810
|
|
Mortgage
banking income (loss)
|
|
|
2,191
|
|
|
2,478
|
|
|
4,354
|
|
|
4,332
|
|
|
(545)
|
|
|
13,355
|
|
|
17,790
|
|
Trust and
investment services income
|
|
|
10,131
|
|
|
9,556
|
|
|
9,823
|
|
|
9,937
|
|
|
9,867
|
|
|
39,447
|
|
|
39,019
|
|
Securities
(losses) gains, net
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
43
|
|
|
30
|
|
Correspondent banking and capital markets income
|
|
|
16,081
|
|
|
24,808
|
|
|
27,734
|
|
|
21,956
|
|
|
16,760
|
|
|
90,579
|
|
|
92,910
|
|
Expense on
centrally-cleared variation margin
|
|
|
(12,677)
|
|
|
(11,892)
|
|
|
(8,547)
|
|
|
(8,362)
|
|
|
(8,451)
|
|
|
(41,478)
|
|
|
(14,155)
|
|
Total
correspondent banking and capital markets income
|
|
|
3,404
|
|
|
12,916
|
|
|
19,187
|
|
|
13,594
|
|
|
8,309
|
|
|
49,101
|
|
|
78,755
|
|
Bank owned
life insurance income
|
|
|
6,567
|
|
|
7,039
|
|
|
6,271
|
|
|
6,813
|
|
|
6,723
|
|
|
26,690
|
|
|
24,311
|
|
Other
|
|
|
9,973
|
|
|
8,029
|
|
|
4,478
|
|
|
6,775
|
|
|
5,426
|
|
|
29,255
|
|
|
24,532
|
|
Total Noninterest Income
|
|
$
|
65,489
|
|
$
|
72,848
|
|
$
|
77,214
|
|
$
|
71,355
|
|
$
|
63,392
|
|
$
|
286,906
|
|
$
|
309,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
$
|
145,850
|
|
$
|
146,146
|
|
$
|
147,342
|
|
$
|
144,060
|
|
$
|
140,440
|
|
$
|
583,398
|
|
$
|
554,704
|
|
Occupancy
expense
|
|
|
22,715
|
|
|
22,251
|
|
|
22,196
|
|
|
21,533
|
|
|
22,412
|
|
|
88,695
|
|
|
89,501
|
|
Information services expense
|
|
|
22,000
|
|
|
21,428
|
|
|
21,119
|
|
|
19,925
|
|
|
19,847
|
|
|
84,472
|
|
|
79,701
|
|
OREO and
loan related (income) expense
|
|
|
948
|
|
|
613
|
|
|
(14)
|
|
|
169
|
|
|
78
|
|
|
1,716
|
|
|
369
|
|
Business
development and staff related
|
|
|
7,492
|
|
|
5,995
|
|
|
6,672
|
|
|
5,957
|
|
|
5,851
|
|
|
26,116
|
|
|
20,133
|
|
Amortization of intangibles
|
|
|
6,615
|
|
|
6,616
|
|
|
7,028
|
|
|
7,299
|
|
|
8,027
|
|
|
27,558
|
|
|
33,205
|
|
Professional fees
|
|
|
7,025
|
|
|
3,456
|
|
|
4,364
|
|
|
3,702
|
|
|
3,756
|
|
|
18,547
|
|
|
15,331
|
|
Supplies
and printing expense
|
|
|
2,761
|
|
|
2,623
|
|
|
2,554
|
|
|
2,640
|
|
|
2,411
|
|
|
10,578
|
|
|
9,621
|
|
FDIC
assessment and other regulatory charges
|
|
|
8,325
|
|
|
8,632
|
|
|
9,819
|
|
|
6,294
|
|
|
6,589
|
|
|
33,070
|
|
|
23,033
|
|
Advertising and marketing
|
|
|
2,826
|
|
|
3,009
|
|
|
1,521
|
|
|
2,118
|
|
|
2,669
|
|
|
9,474
|
|
|
8,888
|
|
Other
operating expenses
|
|
|
19,217
|
|
|
17,273
|
|
|
18,217
|
|
|
17,396
|
|
|
15,877
|
|
|
72,103
|
|
|
64,327
|
|
Merger,
branch consolidation and severance related expense
|
|
|
1,778
|
|
|
164
|
|
|
1,808
|
|
|
9,412
|
|
|
1,542
|
|
|
13,162
|
|
|
30,888
|
|
FDIC
special assessment
|
|
|
25,691
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,691
|
|
|
—
|
|
Total Noninterest Expense
|
|
$
|
273,243
|
|
$
|
238,206
|
|
$
|
242,626
|
|
$
|
240,505
|
|
$
|
229,499
|
|
$
|
994,580
|
|
$
|
929,701
|
|
Loans and Deposits
The following table presents a summary of the loan portfolio by
type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
(Dollars in
thousands)
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
LOAN PORTFOLIO
(7)
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
Construction and land
development * †
|
|
$
|
2,923,514
|
|
$
|
2,776,241
|
|
$
|
2,817,125
|
|
$
|
2,749,290
|
|
$
|
2,860,360
|
|
Investor commercial
real estate*
|
|
|
9,227,968
|
|
|
9,372,683
|
|
|
9,187,948
|
|
|
8,957,507
|
|
|
8,769,201
|
|
Commercial owner
occupied real estate
|
|
|
5,497,671
|
|
|
5,539,097
|
|
|
5,585,951
|
|
|
5,522,514
|
|
|
5,460,193
|
|
Commercial and
industrial
|
|
|
5,504,539
|
|
|
5,458,229
|
|
|
5,378,294
|
|
|
5,321,306
|
|
|
5,313,483
|
|
Consumer real estate
*
|
|
|
7,993,450
|
|
|
7,608,145
|
|
|
7,275,495
|
|
|
6,860,831
|
|
|
6,475,210
|
|
Consumer/other
|
|
|
1,241,347
|
|
|
1,262,277
|
|
|
1,291,972
|
|
|
1,284,694
|
|
|
1,299,415
|
|
Total
Loans
|
|
$
|
32,388,489
|
|
$
|
32,016,672
|
|
$
|
31,536,785
|
|
$
|
30,696,142
|
|
$
|
30,177,862
|
|
|
* 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 $715.5 million,
$863.1 million, $928.4 million, $893.7 million, and $904.1 million,
for the quarters ended December 31, 2023, September 30, 2023, June
30, 2023, March 31, 2023, and December 31, 2022,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
(Dollars in
thousands)
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
DEPOSITS
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
Noninterest-bearing
checking
|
|
$
|
10,649,274
|
|
$
|
11,158,431
|
|
$
|
11,489,483
|
|
$
|
12,422,583
|
|
$
|
13,168,656
|
|
Interest-bearing
checking
|
|
|
7,978,799
|
|
|
7,806,243
|
|
|
8,185,609
|
|
|
8,316,023
|
|
|
8,955,519
|
|
Savings
|
|
|
2,632,212
|
|
|
2,760,166
|
|
|
2,931,320
|
|
|
3,156,214
|
|
|
3,464,351
|
|
Money market
|
|
|
11,538,671
|
|
|
10,756,431
|
|
|
9,710,032
|
|
|
8,388,275
|
|
|
8,342,111
|
|
Time
deposits
|
|
|
4,249,953
|
|
|
4,453,927
|
|
|
4,425,434
|
|
|
4,118,497
|
|
|
2,419,986
|
|
Total
Deposits
|
|
$
|
37,048,909
|
|
$
|
36,935,198
|
|
$
|
36,741,878
|
|
$
|
36,401,592
|
|
$
|
36,350,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Deposits
(excludes Time Deposits)
|
|
$
|
32,798,956
|
|
$
|
32,481,271
|
|
$
|
32,316,444
|
|
$
|
32,283,095
|
|
$
|
33,930,637
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
(Dollars in
thousands)
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
NONPERFORMING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
$
|
110,467
|
|
$
|
105,856
|
|
$
|
104,772
|
|
$
|
68,176
|
|
$
|
44,671
|
|
Accruing loans past due
90 days or more
|
|
|
11,305
|
|
|
783
|
|
|
3,620
|
|
|
2,667
|
|
|
2,358
|
|
Non-acquired OREO and
other nonperforming assets
|
|
|
711
|
|
|
449
|
|
|
227
|
|
|
186
|
|
|
245
|
|
Total non-acquired
nonperforming assets
|
|
|
122,483
|
|
|
107,088
|
|
|
108,619
|
|
|
71,029
|
|
|
47,274
|
|
Acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired nonaccrual
loans and restructured loans on nonaccrual
|
|
|
59,755
|
|
|
57,464
|
|
|
60,734
|
|
|
52,795
|
|
|
59,554
|
|
Accruing loans past due
90 days or more
|
|
|
1,174
|
|
|
1,821
|
|
|
571
|
|
|
983
|
|
|
1,992
|
|
Acquired OREO and other
nonperforming assets
|
|
|
712
|
|
|
378
|
|
|
981
|
|
|
3,446
|
|
|
922
|
|
Total acquired
nonperforming assets
|
|
|
61,641
|
|
|
59,663
|
|
|
62,286
|
|
|
57,224
|
|
|
62,468
|
|
Total nonperforming
assets
|
|
$
|
184,124
|
|
$
|
166,751
|
|
$
|
170,905
|
|
$
|
128,253
|
|
$
|
109,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
ASSET QUALITY RATIOS
(7):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percentage of loans
|
|
|
1.41 %
|
|
|
1.40 %
|
|
|
1.36 %
|
|
|
1.21 %
|
|
|
1.18 %
|
|
Allowance for credit
losses, including reserve for unfunded commitments, as a percentage
of loans
|
|
|
1.58 %
|
|
|
1.59 %
|
|
|
1.56 %
|
|
|
1.48 %
|
|
|
1.40 %
|
|
Allowance for credit
losses as a percentage of nonperforming loans
|
|
|
249.90 %
|
|
|
269.98 %
|
|
|
251.86 %
|
|
|
297.42 %
|
|
|
328.29 %
|
|
Net charge-offs
(recoveries) as a percentage of average loans
(annualized)
|
|
|
0.09 %
|
|
|
0.16 %
|
|
|
0.04 %
|
|
|
0.01 %
|
|
|
0.01 %
|
|
Total nonperforming
assets as a percentage of total assets
|
|
|
0.41 %
|
|
|
0.37 %
|
|
|
0.38 %
|
|
|
0.29 %
|
|
|
0.25 %
|
|
Nonperforming loans as
a percentage of period end loans
|
|
|
0.56 %
|
|
|
0.52 %
|
|
|
0.54 %
|
|
|
0.41 %
|
|
|
0.36 %
|
|
Current Expected Credit Losses ("CECL")
Below is a table showing the roll forward of the ACL and UFC for
the fourth quarter of 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses ("ACL and UFC")
|
|
(Dollars in
thousands)
|
|
NonPCD
ACL
|
|
PCD
ACL
|
|
Total
ACL
|
|
UFC
|
|
Ending balance
9/30/2023
|
|
$
|
409,850
|
|
$
|
38,106
|
|
$
|
447,956
|
|
$
|
62,347
|
|
Charge offs
|
|
|
(8,398)
|
|
|
—
|
|
|
(8,398)
|
|
|
—
|
|
Acquired charge
offs
|
|
|
(1,307)
|
|
|
(768)
|
|
|
(2,075)
|
|
|
—
|
|
Recoveries
|
|
|
1,416
|
|
|
—
|
|
|
1,416
|
|
|
—
|
|
Acquired
recoveries
|
|
|
788
|
|
|
948
|
|
|
1,736
|
|
|
—
|
|
Provision (recovery)
for credit losses
|
|
|
21,527
|
|
|
(5,589)
|
|
|
15,938
|
|
|
(6,044)
|
|
Ending balance
12/31/2023
|
|
$
|
423,876
|
|
$
|
32,697
|
|
$
|
456,573
|
|
$
|
56,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end
loans
|
|
$
|
31,279,676
|
|
$
|
1,108,813
|
|
$
|
32,388,489
|
|
|
N/A
|
|
Allowance for Credit
Losses to Loans
|
|
|
1.36 %
|
|
|
2.95 %
|
|
|
1.41 %
|
|
|
N/A
|
|
Unfunded commitments
(off balance sheet) *
|
|
|
|
|
|
|
|
|
|
|
$
|
8,457,055
|
|
Reserve to unfunded
commitments (off balance sheet)
|
|
|
|
|
|
|
|
|
|
|
|
0.67 %
|
|
|
* Unfunded
commitments exclude unconditionally cancelable commitments and
letters of credit.
|
Conference Call
The Company will host a conference call to discuss its fourth
quarter results at 9:00 a.m. Eastern
Time on January 26, 2024.
Callers wishing to participate may call toll-free by dialing
(888) 350-3899 within the US and (646) 960-0343 for all other
locations. The numbers for international participants are
listed at https://events.q4irportal.com/custom/access/2324/.
The conference ID number is 4200408.
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 January 26, 2024 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. Although other companies may use calculation
methods that differ from those used by SouthState for non-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 and shares
in thousands, except per share data)
|
|
Three Months
Ended
|
|
PRE-PROVISION NET
REVENUE ("PPNR") (NON-GAAP)
|
|
Dec. 31,
2023
|
|
|
Sep. 30,
2023
|
|
|
Jun. 30,
2023
|
|
|
Mar. 31,
2023
|
|
|
Dec. 31,
2022
|
|
Net income
(GAAP)
|
|
$
|
106,791
|
|
|
$
|
124,144
|
|
|
$
|
123,447
|
|
|
$
|
139,926
|
|
|
$
|
143,502
|
|
Provision for credit
losses
|
|
|
9,893
|
|
|
|
32,709
|
|
|
|
38,389
|
|
|
|
33,091
|
|
|
|
47,142
|
|
Tax
provision
|
|
|
29,793
|
|
|
|
33,160
|
|
|
|
34,495
|
|
|
|
39,096
|
|
|
|
39,253
|
|
Merger, branch
consolidation and severance related expense
|
|
|
1,778
|
|
|
|
164
|
|
|
|
1,808
|
|
|
|
9,412
|
|
|
|
1,542
|
|
FDIC special
assessment
|
|
|
25,691
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Securities losses
(gains)
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(45)
|
|
|
|
—
|
|
Pre-provision net
revenue (PPNR) (Non-GAAP)
|
|
$
|
173,948
|
|
|
$
|
190,177
|
|
|
$
|
198,139
|
|
|
$
|
221,480
|
|
|
$
|
231,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average asset balance
(GAAP)
|
|
$
|
45,037,632
|
|
|
$
|
44,841,319
|
|
|
$
|
44,628,124
|
|
|
$
|
44,104,478
|
|
|
$
|
44,429,894
|
|
PPNR
ROAA
|
|
|
1.53
|
%
|
|
|
1.68
|
%
|
|
|
1.78
|
%
|
|
|
2.04
|
%
|
|
|
2.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
|
|
76,634
|
|
|
|
76,571
|
|
|
|
76,418
|
|
|
|
76,389
|
|
|
|
76,327
|
|
PPNR per
weighted-average common shares outstanding
|
|
$
|
2.27
|
|
|
$
|
2.48
|
|
|
$
|
2.59
|
|
|
$
|
2.90
|
|
|
$
|
3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Three Months
Ended
|
|
CORE NET INTEREST
INCOME (NON-GAAP)
|
|
Dec. 31,
2023
|
|
|
Sep. 30,
2023
|
|
|
Jun. 30,
2023
|
|
|
Mar. 31,
2023
|
|
|
Dec. 31,
2022
|
|
Net interest income
(GAAP)
|
|
$
|
354,231
|
|
|
$
|
355,371
|
|
|
$
|
361,743
|
|
|
$
|
381,263
|
|
|
$
|
396,004
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accretion on
acquired loans
|
|
|
3,870
|
|
|
|
4,053
|
|
|
|
5,481
|
|
|
|
7,398
|
|
|
|
7,350
|
|
Core net interest
income (Non-GAAP)
|
|
$
|
350,361
|
|
|
$
|
351,318
|
|
|
$
|
356,262
|
|
|
$
|
373,865
|
|
|
$
|
388,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN
("NIM"), TE (NON-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
$
|
354,231
|
|
|
$
|
355,371
|
|
|
$
|
361,743
|
|
|
$
|
381,263
|
|
|
$
|
396,004
|
|
Total average
interest-earning assets
|
|
|
40,465,377
|
|
|
|
40,376,380
|
|
|
|
40,127,836
|
|
|
|
39,409,340
|
|
|
|
39,655,736
|
|
NIM, non-tax
equivalent
|
|
|
3.47
|
%
|
|
|
3.49
|
%
|
|
|
3.62
|
%
|
|
|
3.92
|
%
|
|
|
3.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment (included in NIM, TE)
|
|
|
659
|
|
|
|
646
|
|
|
|
698
|
|
|
|
1,020
|
|
|
|
2,397
|
|
Net interest income,
tax equivalent (Non-GAAP)
|
|
$
|
354,890
|
|
|
$
|
356,017
|
|
|
$
|
362,441
|
|
|
$
|
382,283
|
|
|
$
|
398,401
|
|
NIM, TE
(Non-GAAP)
|
|
|
3.48
|
%
|
|
|
3.50
|
%
|
|
|
3.62
|
%
|
|
|
3.93
|
%
|
|
|
3.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
(Dollars in
thousands, except per share data)
|
|
Dec.
31,
|
|
|
Sep.
30,
|
|
|
Jun.
30,
|
|
|
Mar.
31,
|
|
|
Dec.
31,
|
|
|
Dec.
31,
|
|
|
Dec.
31,
|
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
|
2023
|
|
|
2023
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Adjusted Net Income
(non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
106,791
|
|
|
$
|
124,144
|
|
|
$
|
123,447
|
|
|
$
|
139,926
|
|
|
$
|
143,502
|
|
|
$
|
494,308
|
|
|
$
|
496,049
|
|
Securities losses
(gains), net of tax
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(35)
|
|
|
|
—
|
|
|
|
(33)
|
|
|
|
(24)
|
|
PCL - NonPCD loans and
UFC, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,492
|
|
Merger, branch
consolidation and severance related expense, net of tax
|
|
|
1,391
|
|
|
|
130
|
|
|
|
1,414
|
|
|
|
7,356
|
|
|
|
1,211
|
|
|
|
10,291
|
|
|
|
24,163
|
|
FDIC special
assessment, net of tax
|
|
|
20,087
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,087
|
|
|
|
—
|
|
Adjusted net income
(non-GAAP)
|
|
$
|
128,271
|
|
|
$
|
124,274
|
|
|
$
|
124,861
|
|
|
$
|
147,247
|
|
|
$
|
144,713
|
|
|
$
|
524,653
|
|
|
$
|
533,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Basic (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic (GAAP)
|
|
$
|
1.40
|
|
|
$
|
1.63
|
|
|
$
|
1.62
|
|
|
$
|
1.84
|
|
|
$
|
1.90
|
|
|
$
|
6.50
|
|
|
$
|
6.65
|
|
Effect to adjust for
securities losses (gains)
|
|
|
0.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.19
|
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.03
|
|
|
|
0.00
|
|
|
|
0.02
|
|
|
|
0.10
|
|
|
|
0.01
|
|
|
|
0.14
|
|
|
|
0.32
|
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.26
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.26
|
|
|
|
—
|
|
Adjusted net income
per common share - Basic (non-GAAP)
|
|
$
|
1.69
|
|
|
$
|
1.63
|
|
|
$
|
1.64
|
|
|
$
|
1.94
|
|
|
$
|
1.91
|
|
|
$
|
6.90
|
|
|
$
|
7.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
per Common Share - Diluted (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Diluted (GAAP)
|
|
$
|
1.39
|
|
|
$
|
1.62
|
|
|
$
|
1.62
|
|
|
$
|
1.83
|
|
|
$
|
1.88
|
|
|
$
|
6.46
|
|
|
$
|
6.60
|
|
Effect to adjust for
securities losses (gains)
|
|
|
0.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.18
|
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.02
|
|
|
|
0.00
|
|
|
|
0.01
|
|
|
|
0.10
|
|
|
|
0.02
|
|
|
|
0.14
|
|
|
|
0.32
|
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.26
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.26
|
|
|
|
—
|
|
Adjusted net income
per common share - Diluted (non-GAAP)
|
|
$
|
1.67
|
|
|
$
|
1.62
|
|
|
$
|
1.63
|
|
|
$
|
1.93
|
|
|
$
|
1.90
|
|
|
$
|
6.86
|
|
|
$
|
7.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Assets (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (GAAP)
|
|
|
0.94
|
%
|
|
|
1.10
|
%
|
|
|
1.11
|
%
|
|
|
1.29
|
%
|
|
|
1.28
|
%
|
|
|
1.11
|
%
|
|
|
1.12
|
%
|
Effect to adjust for
securities losses (gains)
|
|
|
0.00
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.03
|
%
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.01
|
%
|
|
|
—
|
%
|
|
|
0.01
|
%
|
|
|
0.06
|
%
|
|
|
0.01
|
%
|
|
|
0.02
|
%
|
|
|
0.05
|
%
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
0.18
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.04
|
%
|
|
|
—
|
%
|
Adjusted return on
average assets (non-GAAP)
|
|
|
1.13
|
%
|
|
|
1.10
|
%
|
|
|
1.12
|
%
|
|
|
1.35
|
%
|
|
|
1.29
|
%
|
|
|
1.17
|
%
|
|
|
1.20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Equity (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
7.99
|
%
|
|
|
9.24
|
%
|
|
|
9.34
|
%
|
|
|
10.96
|
%
|
|
|
11.41
|
%
|
|
|
9.37
|
%
|
|
|
9.84
|
%
|
Effect to adjust for
securities losses (gains)
|
|
|
0.00
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.27
|
%
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.11
|
%
|
|
|
0.01
|
%
|
|
|
0.11
|
%
|
|
|
0.57
|
%
|
|
|
0.09
|
%
|
|
|
0.19
|
%
|
|
|
0.48
|
%
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
1.50
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.38
|
%
|
|
|
—
|
%
|
Adjusted return on
average common equity (non-GAAP)
|
|
|
9.60
|
%
|
|
|
9.25
|
%
|
|
|
9.45
|
%
|
|
|
11.53
|
%
|
|
|
11.50
|
%
|
|
|
9.94
|
%
|
|
|
10.59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Tangible Equity (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
7.99
|
%
|
|
|
9.24
|
%
|
|
|
9.34
|
%
|
|
|
10.96
|
%
|
|
|
11.41
|
%
|
|
|
9.37
|
%
|
|
|
9.84
|
%
|
Effect to adjust for
intangible assets
|
|
|
5.54
|
%
|
|
|
6.28
|
%
|
|
|
6.47
|
%
|
|
|
7.85
|
%
|
|
|
8.76
|
%
|
|
|
6.50
|
%
|
|
|
7.32
|
%
|
Return on average
tangible equity (non-GAAP)
|
|
|
13.53
|
%
|
|
|
15.52
|
%
|
|
|
15.81
|
%
|
|
|
18.81
|
%
|
|
|
20.17
|
%
|
|
|
15.87
|
%
|
|
|
17.16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Tangible Equity (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
7.99
|
%
|
|
|
9.24
|
%
|
|
|
9.34
|
%
|
|
|
10.96
|
%
|
|
|
11.41
|
%
|
|
|
9.37
|
%
|
|
|
9.84
|
%
|
Effect to adjust for
securities losses (gains)
|
|
|
0.00
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
Effect to adjust for
PCL - NonPCD loans and UFC, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.27
|
%
|
Effect to adjust for
merger, branch consolidation and severance related expense, net of
tax
|
|
|
0.10
|
%
|
|
|
0.01
|
%
|
|
|
0.11
|
%
|
|
|
0.58
|
%
|
|
|
0.10
|
%
|
|
|
0.20
|
%
|
|
|
0.48
|
%
|
Effect to adjust for
FDIC special assessment, net of tax
|
|
|
1.50
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.38
|
%
|
|
|
—
|
%
|
Effect to adjust for
intangible assets
|
|
|
6.53
|
%
|
|
|
6.29
|
%
|
|
|
6.53
|
%
|
|
|
8.21
|
%
|
|
|
8.82
|
%
|
|
|
6.85
|
%
|
|
|
7.81
|
%
|
Adjusted return on
average common tangible equity (non-GAAP)
|
|
|
16.12
|
%
|
|
|
15.54
|
%
|
|
|
15.98
|
%
|
|
|
19.75
|
%
|
|
|
20.33
|
%
|
|
|
16.80
|
%
|
|
|
18.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Efficiency
Ratio (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
63.43
|
%
|
|
|
54.00
|
%
|
|
|
53.59
|
%
|
|
|
51.41
|
%
|
|
|
47.96
|
%
|
|
|
55.50
|
%
|
|
|
54.21
|
%
|
Effect to adjust for
merger, branch consolidation and severance related
expense
|
|
|
(0.43)
|
%
|
|
|
(0.04)
|
%
|
|
|
(0.41)
|
%
|
|
|
(2.07)
|
%
|
|
|
(0.33)
|
%
|
|
|
(0.76)
|
%
|
|
|
(1.87)
|
%
|
Effect to adjust for
FDIC special assessment
|
|
|
(6.11)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(1.47)
|
%
|
|
|
—
|
%
|
Adjusted efficiency
ratio
|
|
|
56.89
|
%
|
|
|
53.96
|
%
|
|
|
53.18
|
%
|
|
|
49.34
|
%
|
|
|
47.63
|
%
|
|
|
53.27
|
%
|
|
|
52.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Common Share (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP)
|
|
$
|
72.78
|
|
|
$
|
68.81
|
|
|
$
|
69.61
|
|
|
$
|
69.19
|
|
|
$
|
67.04
|
|
|
|
|
|
|
|
|
|
Effect to adjust for
intangible assets
|
|
|
(26.46)
|
|
|
|
(26.55)
|
|
|
|
(26.65)
|
|
|
|
(26.79)
|
|
|
|
(26.95)
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (non-GAAP)
|
|
$
|
46.32
|
|
|
$
|
42.26
|
|
|
$
|
42.96
|
|
|
$
|
42.40
|
|
|
$
|
40.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity-to-Tangible Assets (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
(GAAP)
|
|
|
12.32
|
%
|
|
|
11.63
|
%
|
|
|
11.77
|
%
|
|
|
11.68
|
%
|
|
|
11.56
|
%
|
|
|
|
|
|
|
|
|
Effect to adjust for
intangible assets
|
|
|
(4.11)
|
%
|
|
|
(4.15)
|
%
|
|
|
(4.16)
|
%
|
|
|
(4.18)
|
%
|
|
|
(4.31)
|
%
|
|
|
|
|
|
|
|
|
Tangible
equity-to-tangible assets (non-GAAP)
|
|
|
8.21
|
%
|
|
|
7.48
|
%
|
|
|
7.61
|
%
|
|
|
7.50
|
%
|
|
|
7.25
|
%
|
|
|
|
|
|
|
|
|
Certain prior period information has been reclassified to
conform to the current period presentation, and these
reclassifications have no impact on net income or equity as
previously reported.
Footnotes to
tables:
|
(1)
|
Includes loan accretion
(interest) income related to the discount on acquired loans of $3.9
million, $4.1 million, $5.5 million, $7.4 million, and $7.3 million
during the quarters ended December 31, 2023, September 30, 2023,
June 30, 2023, March 31, 2023, and December 31, 2022,
respectively.
|
(2)
|
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, branch
consolidation and severance related expense, initial PCL on nonPCD
loans and unfunded commitments from acquisitions, and FDIC special
assessments. 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, branch consolidation and severance related
expense of $1.8 million, $164,000, $1.8 million, $9.4 million, and
$1.5 million for the quarters ended December 31, 2023, September
30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022,
respectively; (b) pre-tax net securities (losses) gains of $(2,000)
and $45,000 for the quarters ended December 31, 2023 and March 31,
2023, respectively; and (c) pre-tax FDIC special assessment of
$25.7 million for the quarter ended December 31, 2023.
|
(3)
|
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 GAAP to Non-GAAP" provide tables that reconcile
non-GAAP measures to GAAP.
|
(4)
|
Adjusted efficiency
ratio is calculated by taking the noninterest expense excluding
merger, branch consolidation and severance related expense, FDIC
special assessment 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 $6.6 million, $6.6 million, $7.0 million, $7.3 million,
and $8.0 million for the quarters ended December 31, 2023,
September 30, 2023, June 30, 2023, March 31, 2023, and December 31,
2022, respectively.
|
(5)
|
The dividend payout
ratio is calculated by dividing total dividends paid during the
period by the total net income for the same period.
|
(6)
|
December 31, 2023
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.
|
(7)
|
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 negative economic developments resulting 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, the number and pace of interest rate
increases, 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) volatility in the
financial services industry (including failures or rumors of
failures of other depository institutions), along with actions
taken by governmental agencies to address such turmoil, could
affect the ability of depository institutions, including us, to
attract and retain depositors and to borrow or raise capital; (4)
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; (5) 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; (6) potential deterioration in real estate
values; (7) the impact of competition with other financial
institutions, including deposit and loan pricing pressures and the
resulting impact, including as a result of compression to net
interest margin; (8) risks relating to the ability to retain our
culture and attract and retain qualified people, which could be
exacerbated by the continuing work from remote environment; (9)
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; (10) risks
related to the ability of the Company to pursue its strategic plans
which depend upon certain growth goals in our lines of business;
(11) liquidity risk affecting the Bank's ability to meet its
obligations when they come due; (12) 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; (13) unexpected
outflows of uninsured deposits may require us to sell investment
securities at a loss; (14) the loss of value of our investment
portfolio could negatively impact market perceptions of us and
could lead to deposit withdrawals; (15) price risk focusing on
changes in market factors that may affect the value of traded
instruments in "mark-to-market" portfolios; (16) transaction risk
arising from problems with service or product delivery; (17)
compliance risk involving risk to earnings or capital resulting
from violations of or nonconformance with laws, rules, regulations,
prescribed practices, or ethical standards; (18) 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 special
FDIC assessments, the Consumer Financial Protection Bureau
regulations or other guidance, and the possibility of changes in
accounting standards, policies, principles and practices; (19)
strategic risk resulting from adverse business decisions or
improper implementation of business decisions; (20) reputation risk
that adversely affects earnings or capital arising from negative
public opinion including the effects of social media on market
perceptions of us and banks generally; (21) 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; (22) reputational and operational risks associated with
environment, social and governance (ESG) matters, including the
impact of recently passed state legislation and proposed federal
and state regulatory guidance and regulation relating to climate
change; (23) greater than expected noninterest expenses; (24)
excessive loan losses; (25) reputational risk and possible higher
than estimated reduced revenue from previously announced changes in
the Bank's consumer overdraft programs and other deposit products;
(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)
catastrophic events such as hurricanes, tornados, earthquakes,
floods or other natural or human disasters, including public health
crises and infectious disease outbreaks, as well as any government
actions in response to such events, 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) geopolitical risk from
terrorist activities and armed conflicts that may result in
economic and supply disruptions, and loss of market and consumer
confidence; 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