WINTER HAVEN, Fla.,
Oct. 27, 2021 /PRNewswire/
-- SouthState Corporation (NASDAQ: SSB) today released its
unaudited results of operations and other financial information for
the three-month and nine-month periods ended September 30, 2021.
The Company reported consolidated net income of $1.74 per diluted common share for the three
months ended September 30, 2021,
compared to $1.39 per diluted common
share for the three months ended June 30,
2021, and compared to $1.34
per diluted common share one year ago.
Adjusted net income (non-GAAP) totaled $1.94 per diluted share for the three months
ended September 30, 2021, compared to
$1.87 per diluted share for the three
months ended June 30, 2021, and
compared to $1.58 per diluted share
one year ago. Adjusted net income in the third quarter of
2021 excludes $14.1 million of
merger-related costs (after-tax).
"I'm pleased with our progress in the third quarter,
particularly our 10% annualized loan growth (excluding PPP loans),"
said John C. Corbett, Chief
Executive Officer. "New loan production reached a record of
$2.6 billion, up 72% from a year
ago. Additionally, planned cost savings from the recent
systems conversion and a $5.8 million
increase in core net interest income contributed to an increase of
our pre-provision net revenue to $132.3
million. With surplus cash on our balance sheet, the
pending acquisition of Atlantic Capital Bank in Atlanta and strong population growth in the
Southeast, we are well positioned as we head into 2022."
Highlights of the third quarter of 2021 include:
Returns
- Reported & adjusted diluted Earnings per Share ("EPS") of
$1.74 and $1.94 (Non-GAAP), respectively
- Recorded a negative provision for credit losses of $38.9 million compared to a negative provision
for credit losses of $58.8 million in
the prior quarter
- Reported & adjusted Return on Average Tangible Common
Equity of 16.9% (Non-GAAP) and 18.7% (Non-GAAP), respectively
- Pre-Provision Net Revenue ("PPNR") of $132.3 million (Non-GAAP), or 1.29% PPNR ROAA
(Non-GAAP)
- Book value per share of $68.55
increased by $0.95 per share compared
to the prior quarter
- Tangible book value ("TBV") per share of $43.98 (Non-GAAP), up $4.15, or 10.4% from a year ago quarter
Performance
- Core net interest income (non-GAAP) (excluding loan accretion
and deferred fees on PPP) increased $5.8
million from prior quarter
- Total deposit cost of 0.09%, down 3 basis points from prior
quarter
- Noninterest income of $87.0
million, up $8.0 million
compared to the prior quarter, primarily due to a $5.4 million increase in mortgage banking income
and $2.2 million increase in deposit
fee income
Balance Sheet / Credit
- Loans, excluding PPP loans, increased $573.3 million, or 10.0% annualized, centered in
$336.9 million growth in commercial
and industrial loans and $215.5
million growth in investor commercial real estate,
commercial owner occupied real estate, and single family
construction to permanent loans (which are included in the
construction and land development loans category)
- Total deposits increased $318.2
million, or 3.8% annualized, with core deposit growth
totaling $662.7 million, or 8.8%
annualized
- 33.8% of deposits are noninterest-bearing
- Net loan charge-offs of $46
thousand, or 0.00% annualized
Capital Returns
- Repurchased 485,491 shares during 3Q 2021 and approximately
120,000 shares in October 2021, at a
weighted average price of $74.71,
bringing total 2021 repurchases to approximately 1.31 million
shares
Subsequent Events
- Received OCC approval for the Atlantic Capital Bancshares, Inc.
("ACBI") merger, awaiting FRB and ACBI shareholders' approvals
- Declared a cash dividend on common stock of $0.49 per share, payable on November 19, 2021 to shareholders of record as of
November 12, 2021
|
Financial
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
(Dollars in
thousands, except per share data)
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
INCOME
STATEMENT
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees (1)
|
|
$
|
246,065
|
|
$
|
246,177
|
|
$
|
259,967
|
|
$
|
269,632
|
|
$
|
280,825
|
|
$
|
752,209
|
|
$
|
581,566
|
|
|
Investment securities, trading securities, federal funds sold and
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchased under
agreements to resell
|
|
|
25,384
|
|
|
21,364
|
|
|
18,509
|
|
|
16,738
|
|
|
14,469
|
|
|
65,257
|
|
|
42,092
|
|
|
Total interest
income
|
|
|
271,449
|
|
|
267,541
|
|
|
278,476
|
|
|
286,370
|
|
|
295,294
|
|
|
817,466
|
|
|
623,658
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
7,267
|
|
|
9,537
|
|
|
11,257
|
|
|
13,227
|
|
|
15,154
|
|
|
28,061
|
|
|
42,215
|
|
|
Federal
funds purchased, securities sold under agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to repurchase, and
other borrowings
|
|
|
4,196
|
|
|
4,874
|
|
|
5,221
|
|
|
7,596
|
|
|
9,792
|
|
|
14,291
|
|
|
20,525
|
|
|
Total interest
expense
|
|
|
11,463
|
|
|
14,411
|
|
|
16,478
|
|
|
20,823
|
|
|
24,946
|
|
|
42,352
|
|
|
62,740
|
|
|
Net interest
income
|
|
|
259,986
|
|
|
253,130
|
|
|
261,998
|
|
|
265,547
|
|
|
270,348
|
|
|
775,114
|
|
|
560,918
|
|
|
(Recovery)
provision for credit losses
|
|
|
(38,903)
|
|
|
(58,793)
|
|
|
(58,420)
|
|
|
18,185
|
|
|
29,797
|
|
|
(156,116)
|
|
|
217,804
|
|
|
Net interest
income after (recovery) provision for credit losses
|
|
|
298,889
|
|
|
311,923
|
|
|
320,418
|
|
|
247,362
|
|
|
240,551
|
|
|
931,230
|
|
|
343,114
|
|
|
Noninterest
income
|
|
|
87,010
|
|
|
79,020
|
|
|
96,285
|
|
|
97,871
|
|
|
114,790
|
|
|
262,315
|
|
|
213,269
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating
expense
|
|
|
214,672
|
|
|
218,707
|
|
|
218,702
|
|
|
219,719
|
|
|
215,225
|
|
|
652,080
|
|
|
452,977
|
|
|
Merger and/or branch
consolid. expense
|
|
|
17,618
|
|
|
32,970
|
|
|
10,009
|
|
|
19,836
|
|
|
21,662
|
|
|
60,598
|
|
|
66,070
|
|
|
Extinguishment of debt
cost
|
|
|
—
|
|
|
11,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,706
|
|
|
—
|
|
|
SWAP termination
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,787
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Federal Home Loan Bank
advances prepayment fee
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
199
|
|
|
Total noninterest
expense
|
|
|
232,290
|
|
|
263,383
|
|
|
228,711
|
|
|
278,398
|
|
|
236,887
|
|
|
724,384
|
|
|
519,246
|
|
|
Income before
provision for income taxes
|
|
|
153,609
|
|
|
127,560
|
|
|
187,992
|
|
|
66,835
|
|
|
118,454
|
|
|
469,161
|
|
|
37,137
|
|
|
Income taxes (benefit)
provision
|
|
|
30,821
|
|
|
28,600
|
|
|
41,043
|
|
|
(19,401)
|
|
|
23,233
|
|
|
100,464
|
|
|
2,741
|
|
|
Net
income
|
|
$
|
122,788
|
|
$
|
98,960
|
|
$
|
146,949
|
|
$
|
86,236
|
|
$
|
95,221
|
|
$
|
368,697
|
|
$
|
34,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
122,788
|
|
$
|
98,960
|
|
$
|
146,949
|
|
$
|
86,236
|
|
$
|
95,221
|
|
$
|
368,697
|
|
$
|
34,396
|
|
|
Securities gains, net
of tax
|
|
|
(51)
|
|
|
(28)
|
|
|
—
|
|
|
(29)
|
|
|
(12)
|
|
|
(79)
|
|
|
(12)
|
|
|
Income taxes benefit -
carryback tax loss
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,468)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
FHLB prepayment
penalty, net of tax
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|
SWAP termination
expense, net of tax
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,784
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Initial provision for
credit losses - NonPCD loans and UFC
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,212
|
|
|
Merger and/or branch
consolid. expense, net of tax
|
|
|
14,083
|
|
|
25,578
|
|
|
7,824
|
|
|
16,255
|
|
|
17,413
|
|
|
47,485
|
|
|
52,114
|
|
|
Extinguishment of debt
cost, net of tax
|
|
|
—
|
|
|
9,081
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,081
|
|
|
—
|
|
|
Adjusted net
income (non-GAAP)
|
|
$
|
136,820
|
|
$
|
133,591
|
|
$
|
154,773
|
|
$
|
102,824
|
|
$
|
112,622
|
|
$
|
425,184
|
|
$
|
178,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
|
$
|
1.75
|
|
$
|
1.40
|
|
$
|
2.07
|
|
$
|
1.22
|
|
$
|
1.34
|
|
$
|
5.22
|
|
$
|
0.70
|
|
|
Diluted
earnings per common share
|
|
$
|
1.74
|
|
$
|
1.39
|
|
$
|
2.06
|
|
$
|
1.21
|
|
$
|
1.34
|
|
$
|
5.19
|
|
$
|
0.69
|
|
|
Adjusted
net income per common share - Basic (non-GAAP) (2)
|
|
$
|
1.95
|
|
$
|
1.89
|
|
$
|
2.18
|
|
$
|
1.45
|
|
$
|
1.59
|
|
$
|
6.02
|
|
$
|
3.63
|
|
|
Adjusted
net income per common share - Diluted (non-GAAP) (2)
|
|
$
|
1.94
|
|
$
|
1.87
|
|
$
|
2.17
|
|
$
|
1.44
|
|
$
|
1.58
|
|
$
|
5.98
|
|
$
|
3.60
|
|
|
Dividends per common share
|
|
$
|
0.49
|
|
$
|
0.47
|
|
$
|
0.47
|
|
$
|
0.47
|
|
$
|
0.47
|
|
$
|
1.43
|
|
$
|
1.41
|
|
|
Basic
weighted-average common shares outstanding
|
|
|
70,066,235
|
|
|
70,866,193
|
|
|
71,009,209
|
|
|
70,941,200
|
|
|
70,905,027
|
|
|
70,643,289
|
|
|
49,330,267
|
|
|
Diluted
weighted-average common shares outstanding
|
|
|
70,575,726
|
|
|
71,408,888
|
|
|
71,484,490
|
|
|
71,294,864
|
|
|
71,075,866
|
|
|
71,108,204
|
|
|
49,635,882
|
|
|
Effective tax rate
|
|
|
20.06%
|
|
|
22.42%
|
|
|
21.83%
|
|
|
(29.03)%
|
|
|
19.61%
|
|
|
21.41%
|
|
|
7.38%
|
|
|
Adjusted
effective tax rate
|
|
|
20.06%
|
|
|
22.42%
|
|
|
21.83%
|
|
|
18.05%
|
|
|
19.61%
|
|
|
21.41%
|
|
|
7.38%
|
|
|
Performance and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
|
1.20
|
%
|
|
1.00
|
%
|
|
1.56
|
%
|
|
0.90
|
%
|
|
1.00
|
%
|
1.25
|
%
|
0.18
|
%
|
|
|
Adjusted return on
average assets (annualized) (non-GAAP) (2)
|
|
|
1.34
|
%
|
|
1.35
|
%
|
|
1.64
|
%
|
|
1.08
|
%
|
|
1.18
|
%
|
1.44
|
%
|
0.93
|
%
|
|
|
Return on average
equity (annualized)
|
|
|
10.21
|
%
|
|
8.38
|
%
|
|
12.71
|
%
|
|
7.45
|
%
|
|
8.31
|
%
|
10.41
|
%
|
1.41
|
%
|
|
|
Adjusted return on
average equity (annualized) (non-GAAP) (2)
|
|
|
11.37
|
%
|
|
11.31
|
%
|
|
13.39
|
%
|
|
8.88
|
%
|
|
9.83
|
%
|
12.01
|
%
|
7.31
|
%
|
|
|
Return on average
tangible common equity (annualized) (non-GAAP) (3)
|
|
|
16.86
|
%
|
|
14.12
|
%
|
|
21.16
|
%
|
|
13.05
|
%
|
|
14.66
|
%
|
17.34
|
%
|
3.51
|
%
|
|
|
Adjusted return on
average tangible common equity (annualized) (non-GAAP) (2)
(3)
|
|
|
18.68
|
%
|
|
18.74
|
%
|
|
22.24
|
%
|
|
15.35
|
%
|
|
17.14
|
%
|
19.85
|
%
|
13.58
|
%
|
|
|
Efficiency ratio (tax
equivalent)
|
|
|
64.22
|
%
|
|
76.28
|
%
|
|
61.06
|
%
|
|
73.59
|
%
|
|
58.91
|
%
|
66.99
|
%
|
64.60
|
%
|
|
|
Adjusted efficiency
ratio (non-GAAP) (4)
|
|
|
59.16
|
%
|
|
62.88
|
%
|
|
58.27
|
%
|
|
57.52
|
%
|
|
53.30
|
%
|
60.05
|
%
|
56.07
|
%
|
|
|
Dividend payout ratio
(5)
|
|
|
27.94
|
%
|
|
33.65
|
%
|
|
22.72
|
%
|
|
38.67
|
%
|
|
35.01
|
%
|
27.39
|
%
|
188.71
|
%
|
|
|
Book value per common
share
|
|
$
|
68.55
|
|
$
|
67.60
|
|
$
|
66.42
|
|
$
|
65.49
|
|
$
|
64.34
|
|
|
|
|
|
|
|
Tangible book value
per common share (non-GAAP) (3)
|
|
$
|
43.98
|
|
$
|
43.07
|
|
$
|
42.02
|
|
$
|
41.16
|
|
$
|
39.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
|
|
|
11.7
|
%
|
|
11.8
|
%
|
|
11.9
|
%
|
|
12.3
|
%
|
|
12.1
|
%
|
|
|
|
|
|
|
Tangible
equity-to-tangible assets (non-GAAP) (3)
|
|
|
7.8
|
%
|
|
7.8
|
%
|
|
7.9
|
%
|
|
8.1
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
Tier 1 leverage (6)
*
|
|
|
8.1
|
%
|
|
8.1
|
%
|
|
8.5
|
%
|
|
8.3
|
%
|
|
8.1
|
%
|
|
|
|
|
|
|
Tier 1 common equity
(6) *
|
|
|
11.9
|
%
|
|
12.1
|
%
|
|
12.2
|
%
|
|
11.8
|
%
|
|
11.5
|
%
|
|
|
|
|
|
|
Tier 1 risk-based
capital (6) *
|
|
|
11.9
|
%
|
|
12.1
|
%
|
|
12.2
|
%
|
|
11.8
|
%
|
|
11.5
|
%
|
|
|
|
|
|
|
Total risk-based
capital (6) *
|
|
|
13.7
|
%
|
|
14.1
|
%
|
|
14.5
|
%
|
|
14.2
|
%
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
branches
|
|
|
281
|
|
|
281
|
|
|
281
|
|
|
285
|
|
|
305
|
|
|
|
|
|
|
|
|
*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)
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
|
BALANCE
SHEET
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
$
|
597,321
|
|
$
|
529,434
|
|
$
|
392,556
|
|
$
|
363,306
|
|
$
|
344,389
|
|
|
Federal
Funds Sold and interest-earning deposits with banks
|
|
|
5,701,002
|
|
|
5,875,078
|
|
|
5,581,581
|
|
|
4,245,949
|
|
|
4,127,250
|
|
|
Cash and cash
equivalents
|
|
|
6,298,323
|
|
|
6,404,512
|
|
|
5,974,137
|
|
|
4,609,255
|
|
|
4,471,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities,
at fair value
|
|
|
61,294
|
|
|
89,925
|
|
|
83,947
|
|
|
10,674
|
|
|
—
|
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held-to-maturity
|
|
|
1,641,485
|
|
|
1,189,265
|
|
|
1,214,313
|
|
|
955,542.00
|
|
|
—
|
|
|
Securities available for sale, at fair value
|
|
|
4,631,554
|
|
|
4,369,159
|
|
|
3,891,490
|
|
|
3,330,672
|
|
|
3,561,929
|
|
|
Other
investments
|
|
|
160,592
|
|
|
160,607
|
|
|
161,468
|
|
|
160,443
|
|
|
185,199
|
|
|
Total investment securities
|
|
|
6,433,631
|
|
|
5,719,031
|
|
|
5,267,271
|
|
|
4,446,657
|
|
|
3,747,128
|
|
|
Loans held for
sale
|
|
|
242,813
|
|
|
171,447
|
|
|
352,997
|
|
|
290,467
|
|
|
456,141
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased credit
deteriorated
|
|
|
2,255,874
|
|
|
2,434,259
|
|
|
2,680,466
|
|
|
2,915,809
|
|
|
3,143,822
|
|
|
Purchased non-credit
deteriorated
|
|
|
6,554,647
|
|
|
7,457,950
|
|
|
8,433,913
|
|
|
9,458,869
|
|
|
10,557,907
|
|
|
Non-acquired
|
|
|
14,978,428
|
|
|
14,140,869
|
|
|
13,377,086
|
|
|
12,289,456
|
|
|
11,536,086
|
|
|
Less
allowance for credit losses
|
|
|
(314,144)
|
|
|
(350,401)
|
|
|
(406,460)
|
|
|
(457,309)
|
|
|
(440,159)
|
|
|
Loans, net
|
|
|
23,474,805
|
|
|
23,682,677
|
|
|
24,085,005
|
|
|
24,206,825
|
|
|
24,797,656
|
|
|
Other real estate
owned ("OREO")
|
|
|
3,687
|
|
|
5,039
|
|
|
11,471
|
|
|
11,914
|
|
|
13,480
|
|
|
Premises and
equipment, net
|
|
|
569,817
|
|
|
568,473
|
|
|
569,171
|
|
|
579,239
|
|
|
626,259
|
|
|
Bank owned life
insurance
|
|
|
778,552
|
|
|
773,452
|
|
|
562,624
|
|
|
559,368
|
|
|
556,475
|
|
|
Mortgage servicing
rights
|
|
|
60,922
|
|
|
57,351
|
|
|
54,285
|
|
|
43,820
|
|
|
34,578
|
|
|
Core deposit and
other intangibles
|
|
|
136,584
|
|
|
145,126
|
|
|
153,861
|
|
|
162,592
|
|
|
171,637
|
|
|
Goodwill
|
|
|
1,581,085
|
|
|
1,581,085
|
|
|
1,579,758
|
|
|
1,563,942
|
|
|
1,566,524
|
|
|
Other
assets
|
|
|
1,262,195
|
|
|
1,177,751
|
|
|
1,035,805
|
|
|
1,305,120
|
|
|
1,377,849
|
|
|
Total assets
|
|
$
|
40,903,708
|
|
$
|
40,375,869
|
|
$
|
39,730,332
|
|
$
|
37,789,873
|
|
$
|
37,819,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
11,333,881
|
|
$
|
11,176,338
|
|
$
|
10,801,812
|
|
$
|
9,711,338
|
|
$
|
9,681,095
|
|
|
Interest-bearing
|
|
|
22,226,677
|
|
|
22,066,031
|
|
|
21,639,598
|
|
|
20,982,544
|
|
|
20,288,859
|
|
|
Total deposits
|
|
|
33,560,558
|
|
|
33,242,369
|
|
|
32,441,410
|
|
|
30,693,882
|
|
|
29,969,954
|
|
|
Federal funds
purchased and securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold
under agreements to repurchase
|
|
|
859,736
|
|
|
862,429
|
|
|
878,581
|
|
|
779,666
|
|
|
706,723
|
|
|
Other
borrowings
|
|
|
326,807
|
|
|
351,548
|
|
|
390,323
|
|
|
390,179
|
|
|
1,089,637
|
|
|
Reserve for unfunded
commitments
|
|
|
28,289
|
|
|
30,981
|
|
|
35,829
|
|
|
43,380
|
|
|
43,161
|
|
|
Other
liabilities
|
|
|
1,335,377
|
|
|
1,130,919
|
|
|
1,264,369
|
|
|
1,234,886
|
|
|
1,446,478
|
|
|
Total liabilities
|
|
|
36,110,767
|
|
|
35,618,247
|
|
|
35,010,512
|
|
|
33,141,993
|
|
|
33,255,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock - $2.50 par value; authorized 160,000,000 shares
|
|
|
174,795
|
|
|
175,957
|
|
|
177,651
|
|
|
177,434
|
|
|
177,321
|
|
|
Surplus
|
|
|
3,693,622
|
|
|
3,720,946
|
|
|
3,772,248
|
|
|
3,765,406
|
|
|
3,764,482
|
|
|
Retained
earnings
|
|
|
925,044
|
|
|
836,584
|
|
|
770,952
|
|
|
657,451
|
|
|
604,564
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(520)
|
|
|
24,136
|
|
|
(1,031)
|
|
|
47,589
|
|
|
17,046
|
|
|
Total shareholders' equity
|
|
|
4,792,941
|
|
|
4,757,623
|
|
|
4,719,820
|
|
|
4,647,880
|
|
|
4,563,413
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
40,903,708
|
|
$
|
40,375,869
|
|
$
|
39,730,332
|
|
$
|
37,789,873
|
|
$
|
37,819,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
|
|
69,918,037
|
|
|
70,382,728
|
|
|
71,060,446
|
|
|
70,973,477
|
|
|
70,928,304
|
|
|
Net Interest
Income and Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Sep. 30,
2021
|
|
Jun. 30,
2021
|
|
Sep. 30,
2020
|
|
|
(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
|
|
$
|
6,072,760
|
|
$
|
2,199
|
|
0.14%
|
|
$
|
5,670,674
|
|
$
|
1,350
|
|
0.10%
|
|
$
|
4,406,376
|
|
$
|
1,215
|
|
0.11%
|
|
|
Investment
securities
|
|
|
6,084,812
|
|
|
23,185
|
|
1.51%
|
|
|
5,371,985
|
|
|
20,014
|
|
1.49%
|
|
|
3,227,988
|
|
|
13,254
|
|
1.63%
|
|
|
Loans held for
sale
|
|
|
184,547
|
|
|
1,307
|
|
2.81%
|
|
|
281,547
|
|
|
1,977
|
|
2.82%
|
|
|
556,670
|
|
|
4,151
|
|
2.97%
|
|
|
Total loans,
excluding PPP
|
|
|
22,937,207
|
|
|
226,083
|
|
3.91%
|
|
|
22,588,076
|
|
|
225,664
|
|
4.01%
|
|
|
23,021,394
|
|
|
260,527
|
|
4.50%
|
|
|
Total PPP
loans
|
|
|
939,111
|
|
|
18,675
|
|
7.89%
|
|
|
1,719,323
|
|
|
18,536
|
|
4.32%
|
|
|
2,291,238
|
|
|
16,147
|
|
2.80%
|
|
|
Total loans held for
investment
|
|
|
23,876,318
|
|
|
244,758
|
|
4.07%
|
|
|
24,307,399
|
|
|
244,200
|
|
4.03%
|
|
|
25,312,632
|
|
|
276,674
|
|
4.35%
|
|
|
Total interest-earning
assets
|
|
|
36,218,437
|
|
|
271,449
|
|
2.97%
|
|
|
35,631,605
|
|
|
267,541
|
|
3.01%
|
|
|
33,503,666
|
|
|
295,294
|
|
3.51%
|
|
|
Noninterest-earning
assets
|
|
|
4,375,329
|
|
|
|
|
|
|
|
4,201,147
|
|
|
|
|
|
|
|
4,361,551
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
40,593,766
|
|
|
|
|
|
|
$
|
39,832,752
|
|
|
|
|
|
|
$
|
37,865,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money
market accounts
|
|
$
|
15,908,784
|
|
$
|
3,110
|
|
0.08%
|
|
$
|
15,453,940
|
|
$
|
4,513
|
|
0.12%
|
|
$
|
13,671,430
|
|
$
|
7,853
|
|
0.23%
|
|
|
Savings
deposits
|
|
|
3,126,055
|
|
|
241
|
|
0.03%
|
|
|
2,995,871
|
|
|
453
|
|
0.06%
|
|
|
2,561,605
|
|
|
584
|
|
0.09%
|
|
|
Certificates and
other time deposits
|
|
|
3,256,488
|
|
|
3,916
|
|
0.48%
|
|
|
3,408,778
|
|
|
4,571
|
|
0.54%
|
|
|
4,016,437
|
|
|
6,717
|
|
0.67%
|
|
|
Federal funds
purchased and repurchase agreements
|
|
|
860,810
|
|
|
259
|
|
0.12%
|
|
|
914,641
|
|
|
323
|
|
0.14%
|
|
|
710,369
|
|
|
509
|
|
0.29%
|
|
|
Other
borrowings
|
|
|
334,256
|
|
|
3,937
|
|
4.67%
|
|
|
368,897
|
|
|
4,551
|
|
4.95%
|
|
|
1,089,399
|
|
|
9,283
|
|
3.39%
|
|
|
Total interest-bearing
liabilities
|
|
|
23,486,393
|
|
|
11,463
|
|
0.19%
|
|
|
23,142,127
|
|
|
14,411
|
|
0.25%
|
|
|
22,049,240
|
|
|
24,946
|
|
0.45%
|
|
|
Noninterest-bearing
liabilities ("Non-IBL")
|
|
|
12,333,922
|
|
|
|
|
|
|
|
11,951,384
|
|
|
|
|
|
|
|
11,259,916
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
4,773,451
|
|
|
|
|
|
|
|
4,739,241
|
|
|
|
|
|
|
|
4,556,061
|
|
|
|
|
|
|
|
Total Non-IBL and
shareholders' equity
|
|
|
17,107,373
|
|
|
|
|
|
|
|
16,690,625
|
|
|
|
|
|
|
|
15,815,977
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
40,593,766
|
|
|
|
|
|
|
$
|
39,832,752
|
|
|
|
|
|
|
$
|
37,865,217
|
|
|
|
|
|
|
|
Net Interest
Income and Margin (Non-Tax Equivalent)
|
|
|
|
|
$
|
259,986
|
|
2.85%
|
|
|
|
|
$
|
253,130
|
|
2.85%
|
|
|
|
|
$
|
270,348
|
|
3.21%
|
|
|
Net Interest
Margin (Tax Equivalent)
|
|
|
|
|
|
|
|
2.86%
|
|
|
|
|
|
|
|
2.87%
|
|
|
|
|
|
|
|
3.22%
|
|
|
Total Deposit Cost
(without Debt and Other Borrowings)
|
|
|
|
|
|
|
|
0.09%
|
|
|
|
|
|
|
|
0.12%
|
|
|
|
|
|
|
|
0.20%
|
|
|
Overall Cost of
Funds (including Demand Deposits)
|
|
|
|
|
|
|
|
0.13%
|
|
|
|
|
|
|
|
0.17%
|
|
|
|
|
|
|
|
0.31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accretion on
Acquired Loans (1)
|
|
|
|
|
$
|
5,243
|
|
|
|
|
|
|
$
|
6,292
|
|
|
|
|
|
|
$
|
22,445
|
|
|
|
|
Total Deferred
Fees on PPP Loans
|
|
|
|
|
$
|
16,369
|
|
|
|
|
|
|
$
|
14,232
|
|
|
|
|
|
|
$
|
8,533
|
|
|
|
|
TEFRA (included in
NIM, Tax Equivalent)
|
|
|
|
|
$
|
1,477
|
|
|
|
|
|
|
$
|
1,424
|
|
|
|
|
|
|
$
|
734
|
|
|
|
|
|
|
(1)
|
The remaining loan
discount on acquired loans to be accreted into loan interest income
totals $75.7 million and the remaining net deferred fees on PPP
loans totals $9.5 million as of September 30, 2021.
|
|
Noninterest Income
and Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
(Dollars in
thousands)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on
deposit accounts
|
|
$
|
26,130
|
|
$
|
23,936
|
|
$
|
25,282
|
|
$
|
25,153
|
|
$
|
24,346
|
|
$
|
75,348
|
|
$
|
59,166
|
|
|
Mortgage
banking income
|
|
|
15,560
|
|
|
10,115
|
|
|
26,880
|
|
|
25,162
|
|
|
48,022
|
|
|
52,555
|
|
|
81,040
|
|
|
Trust
and investment services income
|
|
|
9,150
|
|
|
9,733
|
|
|
8,578
|
|
|
7,506
|
|
|
7,404
|
|
|
27,461
|
|
|
21,931
|
|
|
Securities gains, net
|
|
|
64
|
|
|
36
|
|
|
—
|
|
|
35
|
|
|
15
|
|
|
100
|
|
|
15
|
|
|
Correspondent banking and capital market income
|
|
|
25,164
|
|
|
25,877
|
|
|
28,748
|
|
|
27,751
|
|
|
26,432
|
|
|
79,789
|
|
|
36,992
|
|
|
Bank
owned life insurance income
|
|
|
5,132
|
|
|
5,047
|
|
|
3,300
|
|
|
3,341
|
|
|
4,127
|
|
|
13,478
|
|
|
8,038
|
|
|
Other
|
|
|
5,810
|
|
|
4,276
|
|
|
3,498
|
|
|
8,923
|
|
|
4,444
|
|
|
13,584
|
|
|
6,087
|
|
|
Total Noninterest Income
|
|
$
|
87,010
|
|
$
|
79,020
|
|
$
|
96,286
|
|
$
|
97,871
|
|
$
|
114,790
|
|
$
|
262,315
|
|
$
|
213,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
$
|
136,969
|
|
$
|
137,379
|
|
$
|
140,361
|
|
$
|
138,982
|
|
$
|
134,919
|
|
$
|
414,709
|
|
$
|
277,617
|
|
|
Swap
termination expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,787
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Occupancy expense
|
|
|
23,135
|
|
|
22,844
|
|
|
23,331
|
|
|
23,496
|
|
|
23,845
|
|
|
69,310
|
|
|
52,091
|
|
|
Information services expense
|
|
|
18,061
|
|
|
19,078
|
|
|
18,789
|
|
|
19,527
|
|
|
18,855
|
|
|
55,928
|
|
|
40,317
|
|
|
FHLB
prepayment penalty
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
199
|
|
|
OREO
expense and loan related
|
|
|
1,527
|
|
|
240
|
|
|
1,002
|
|
|
728
|
|
|
1,146
|
|
|
2,769
|
|
|
2,840
|
|
|
Business
development and staff related
|
|
|
4,424
|
|
|
4,305
|
|
|
3,371
|
|
|
3,835
|
|
|
2,599
|
|
|
12,100
|
|
|
6,290
|
|
|
Amortization of intangibles
|
|
|
8,543
|
|
|
8,968
|
|
|
9,164
|
|
|
9,760
|
|
|
9,560
|
|
|
26,675
|
|
|
17,232
|
|
|
Professional fees
|
|
|
2,415
|
|
|
2,301
|
|
|
3,274
|
|
|
4,306
|
|
|
4,385
|
|
|
7,990
|
|
|
9,727
|
|
|
Supplies
and printing expense
|
|
|
2,310
|
|
|
2,500
|
|
|
2,670
|
|
|
2,809
|
|
|
2,755
|
|
|
7,480
|
|
|
5,870
|
|
|
FDIC
assessment and other regulatory charges
|
|
|
4,245
|
|
|
4,931
|
|
|
3,841
|
|
|
3,403
|
|
|
2,849
|
|
|
13,017
|
|
|
7,310
|
|
|
Advertising and marketing
|
|
|
2,185
|
|
|
1,659
|
|
|
1,740
|
|
|
1,544
|
|
|
1,203
|
|
|
5,584
|
|
|
2,548
|
|
|
Other
operating expenses
|
|
|
10,858
|
|
|
14,502
|
|
|
11,159
|
|
|
11,329
|
|
|
13,109
|
|
|
36,518
|
|
|
31,135
|
|
|
Branch
consolidation and merger expense
|
|
|
17,618
|
|
|
32,970
|
|
|
10,009
|
|
|
19,836
|
|
|
21,662
|
|
|
60,598
|
|
|
66,070
|
|
|
Extinguishment of debt cost
|
|
|
—
|
|
|
11,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,706
|
|
|
—
|
|
|
Total Noninterest Expense
|
|
$
|
232,290
|
|
$
|
263,383
|
|
$
|
228,711
|
|
$
|
278,398
|
|
$
|
236,887
|
|
$
|
724,384
|
|
$
|
519,246
|
|
|
Loans and
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
presents a summary of the loan portfolio by type (dollars in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
|
(Dollars in
thousands)
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
|
LOAN
PORTFOLIO
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
|
Construction and land
development*
|
|
$
|
2,032,731
|
|
$
|
1,947,646
|
|
$
|
1,888,240
|
|
$
|
1,890,846
|
|
$
|
1,829,345
|
|
|
Investor commercial
real estate*
|
|
|
7,131,192
|
|
|
7,094,109
|
|
|
6,978,326
|
|
|
7,007,146
|
|
|
7,050,104
|
|
|
Commercial owner
occupied real estate
|
|
|
4,988,490
|
|
|
4,895,189
|
|
|
4,817,346
|
|
|
4,832,697
|
|
|
4,836,405
|
|
|
Commercial and
industrial, excluding PPP
|
|
|
3,458,520
|
|
|
3,121,625
|
|
|
3,140,893
|
|
|
3,112,848
|
|
|
3,066,551
|
|
|
Consumer real
estate*
|
|
|
4,733,567
|
|
|
4,748,693
|
|
|
4,835,567
|
|
|
4,974,808
|
|
|
5,195,978
|
|
|
Consumer/other
|
|
|
943,243
|
|
|
907,181
|
|
|
885,320
|
|
|
912,327
|
|
|
907,711
|
|
|
Subtotal
|
|
|
23,287,743
|
|
|
22,714,443
|
|
|
22,545,692
|
|
|
22,730,672
|
|
|
22,886,094
|
|
|
PPP loans
|
|
|
501,206
|
|
|
1,318,635
|
|
|
1,945,773
|
|
|
1,933,462
|
|
|
2,351,721
|
|
|
Total
Loans
|
|
$
|
23,788,949
|
|
$
|
24,033,078
|
|
$
|
24,491,465
|
|
$
|
24,664,134
|
|
$
|
25,237,815
|
|
|
|
As a result of the
conversion of legacy CenterState's core system to the Company's
core system completed in 2Q 2021, several loans were reclassified
to conform with the Company's loan segmentation, most notably
residential investment loans which were reclassed from consumer
real estate to investor commercial real estate. All periods
prior to 2Q 2021 presented above were revised to conform with the
current loan segmentation.
|
|
|
* 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
|
(Dollars in
thousands)
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
|
DEPOSITS
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
|
Noninterest-bearing
checking
|
|
$
|
11,333,881
|
|
$
|
11,176,338
|
|
$
|
10,801,812
|
|
$
|
9,711,338
|
|
$
|
9,681,095
|
|
|
Interest-bearing
checking
|
|
|
7,920,236
|
|
|
7,651,433
|
|
|
7,369,066
|
|
|
6,955,575
|
|
|
6,414,905
|
|
|
Savings
|
|
|
3,201,543
|
|
|
3,051,229
|
|
|
2,906,673
|
|
|
2,694,010
|
|
|
2,618,877
|
|
|
Money market
|
|
|
8,110,162
|
|
|
8,024,117
|
|
|
7,884,132
|
|
|
7,584,353
|
|
|
7,404,299
|
|
|
Time
deposits
|
|
|
2,994,736
|
|
|
3,339,252
|
|
|
3,479,727
|
|
|
3,748,605
|
|
|
3,850,778
|
|
|
Total
Deposits
|
|
$
|
33,560,558
|
|
$
|
33,242,369
|
|
$
|
32,441,410
|
|
$
|
30,693,881
|
|
$
|
29,969,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Deposits
(excludes Time Deposits)
|
|
$
|
30,565,822
|
|
$
|
29,903,117
|
|
$
|
28,961,683
|
|
$
|
26,945,276
|
|
$
|
26,119,176
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance
|
|
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
|
(Dollars in
thousands)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
|
NONPERFORMING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
nonperforming loans
|
|
$
|
25,529
|
|
$
|
16,624
|
|
$
|
21,034
|
|
$
|
29,171
|
|
$
|
22,463
|
|
|
Non-acquired OREO and
other nonperforming assets
|
|
|
364
|
|
|
695
|
|
|
654
|
|
|
688
|
|
|
825
|
|
|
Total non-acquired
nonperforming assets
|
|
|
25,893
|
|
|
17,319
|
|
|
21,688
|
|
|
29,859
|
|
|
23,288
|
|
|
Acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired nonperforming
loans
|
|
|
64,672
|
|
|
69,053
|
|
|
80,024
|
|
|
77,668
|
|
|
89,974
|
|
|
Acquired OREO and other
nonperforming assets
|
|
|
3,804
|
|
|
4,777
|
|
|
11,292
|
|
|
11,568
|
|
|
12,904
|
|
|
Total acquired
nonperforming assets
|
|
|
68,476
|
|
|
73,830
|
|
|
91,316
|
|
|
89,236
|
|
|
102,878
|
|
|
Total nonperforming
assets
|
|
$
|
94,369
|
|
$
|
91,149
|
|
$
|
113,004
|
|
$
|
119,095
|
|
$
|
126,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sep.
30,
|
|
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
|
ASSET QUALITY
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percentage of loans
|
|
|
1.32%
|
|
|
1.46%
|
|
|
1.66%
|
|
|
1.85%
|
|
|
1.74%
|
|
|
Allowance for credit
losses as a percentage of loans, excluding PPP loans
|
|
|
1.35%
|
|
|
1.54%
|
|
|
1.80%
|
|
|
2.01%
|
|
|
1.92%
|
|
|
Allowance for credit
losses as a percentage of nonperforming loans
|
|
|
348.27%
|
|
|
408.98%
|
|
|
402.20%
|
|
|
428.04%
|
|
|
391.47%
|
|
|
Net (recoveries)
charge-offs as a percentage of average loans
(annualized)
|
|
|
0.00%
|
|
|
0.03%
|
|
|
(0.00)%
|
|
|
0.01%
|
|
|
0.01%
|
|
|
Total nonperforming
assets as a percentage of total assets
|
|
|
0.23%
|
|
|
0.23%
|
|
|
0.28%
|
|
|
0.32%
|
|
|
0.33%
|
|
|
Nonperforming loans
as a percentage of period end loans
|
|
|
0.38%
|
|
|
0.36%
|
|
|
0.41%
|
|
|
0.43%
|
|
|
0.45%
|
|
|
Current Expected
Credit Losses ("CECL")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Below is a table
showing the roll forward of the ACL and UFC for the third quarter
of 2021:
|
|
|
|
|
Allowance for
Credit Losses ("ACL & UFC")
|
|
|
|
NonPCD
ACL
|
|
PCD
ACL
|
|
Total
|
|
UFC
|
|
|
Ending Balance
6/30/2021
|
|
$
|
245,368
|
|
$
|
105,033
|
|
$
|
350,401
|
|
$
|
30,981
|
|
|
Charge
offs
|
|
|
(2,722)
|
|
|
—
|
|
|
(2,722)
|
|
|
—
|
|
|
Acquired charge
offs
|
|
|
(558)
|
|
|
(567)
|
|
|
(1,125)
|
|
|
—
|
|
|
Recoveries
|
|
|
1,512
|
|
|
—
|
|
|
1,512
|
|
|
—
|
|
|
Acquired
recoveries
|
|
|
540
|
|
|
1,749
|
|
|
2,289
|
|
|
—
|
|
|
Provision for credit
losses
|
|
|
(22,759)
|
|
|
(13,452)
|
|
|
(36,211)
|
|
|
(2,692)
|
|
|
Ending balance
9/30/2021
|
|
$
|
221,381
|
|
$
|
92,763
|
|
$
|
314,144
|
|
$
|
28,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end loans
(includes PPP Loans)
|
|
$
|
21,533,075
|
|
$
|
2,255,874
|
|
$
|
23,788,949
|
|
|
N/A
|
|
|
Reserve to Loans
(includes PPP Loans)
|
|
|
1.03%
|
|
|
4.11%
|
|
|
1.32%
|
|
|
N/A
|
|
|
Period end loans
(excludes PPP Loans)
|
|
$
|
21,031,869
|
|
$
|
2,255,874
|
|
$
|
23,287,743
|
|
|
N/A
|
|
|
Reserve to Loans
(excludes PPP Loans)
|
|
|
1.05%
|
|
|
4.11%
|
|
|
1.35%
|
|
|
N/A
|
|
|
Unfunded commitments
(off balance sheet) *
|
|
|
|
|
|
|
|
|
|
|
$
|
5,497,678
|
|
|
Reserve to unfunded
commitments (off balance sheet)
|
|
|
|
|
|
|
|
|
|
|
|
0.51%
|
|
|
|
* Unfunded
commitments exclude unconditionally cancelable commitments and
letters of credit.
|
Conference Call
The Company will host a conference call to discuss its third
quarter results at 10:00 a.m. Eastern
Time on October 28, 2021.
Management from Atlantic Capital Bancshares, Inc. will
participate in this call to provide some commentary on its
financial results for the quarter. 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 311263. 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 October 28, 2021 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRE-PROVISION NET
REVENUE ("PPNR") (NON-GAAP)
|
|
Sep. 30,
2021
|
|
|
Jun. 30,
2021
|
|
|
Mar. 31,
2021
|
|
|
Dec. 31,
2020
|
|
|
Sep 30,
2020
|
|
|
Net income
(GAAP)
|
|
$
|
122,788
|
|
|
$
|
98,960
|
|
|
$
|
146,949
|
|
|
$
|
86,236
|
|
|
$
|
95,221
|
|
|
(Recovery) provision
for credit losses
|
|
|
(38,903)
|
|
|
|
(58,793)
|
|
|
|
(58,420)
|
|
|
|
18,185
|
|
|
|
29,797
|
|
|
Tax provision
(benefit)
|
|
|
30,821
|
|
|
|
28,600
|
|
|
|
41,043
|
|
|
|
(19,401)
|
|
|
|
23,233
|
|
|
Merger-related
costs
|
|
|
17,618
|
|
|
|
32,970
|
|
|
|
10,009
|
|
|
|
19,836
|
|
|
|
21,662
|
|
|
Extinguishment of debt
costs
|
|
|
—
|
|
|
|
11,706
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Securities
gains
|
|
|
(64)
|
|
|
|
(36)
|
|
|
|
—
|
|
|
|
(35)
|
|
|
|
(15)
|
|
|
FHLB advance prepayment
cost
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
56
|
|
|
|
—
|
|
|
Swap termination
cost
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38,787
|
|
|
|
—
|
|
|
Pre-provision net
revenue (PPNR) (Non-GAAP)
|
|
$
|
132,260
|
|
|
$
|
113,407
|
|
|
$
|
139,581
|
|
|
$
|
143,664
|
|
|
$
|
169,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average asset balance
(GAAP)
|
|
$
|
40,593,766
|
|
|
$
|
39,832,752
|
|
|
$
|
38,245,410
|
|
|
$
|
38,027,111
|
|
|
$
|
37,865,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPNR
ROAA
|
|
|
1.29
|
%
|
|
|
1.14
|
%
|
|
|
1.48
|
%
|
|
|
1.50
|
%
|
|
|
1.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
(Dollars in
thousands, except per share data)
|
|
Sep.
30,
|
|
|
Jun.
30,
|
|
|
Mar.
31,
|
|
|
Dec.
31,
|
|
|
Sep.
30,
|
|
|
Sep.
30,
|
|
|
Sep.
30,
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
Adjusted Net
Income (non-GAAP) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
122,788
|
|
|
$
|
98,960
|
|
|
$
|
146,949
|
|
|
$
|
86,236
|
|
|
$
|
95,221
|
|
|
$
|
368,697
|
|
|
$
|
34,396
|
|
|
Securities gains, net
of tax
|
|
|
(51)
|
|
|
|
(28)
|
|
|
|
—
|
|
|
|
(29)
|
|
|
|
(12)
|
|
|
|
(79)
|
|
|
|
(12)
|
|
|
PCL - NonPCD loans
& unfunded commitments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
92,212
|
|
|
Swap termination
expense, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31,784
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Benefit for income
taxes - carryback tax loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(31,468)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
FHLB prepayment
penalty, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
46
|
|
|
|
—
|
|
|
|
—
|
|
|
|
154
|
|
|
Merger and branch
consolidation/acq. expense, net of tax
|
|
|
14,083
|
|
|
|
25,578
|
|
|
|
7,824
|
|
|
|
16,255
|
|
|
|
17,413
|
|
|
|
47,485
|
|
|
|
52,114
|
|
|
Extinguishment of debt
cost, net of tax
|
|
|
—
|
|
|
|
9,081
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,081
|
|
|
|
—
|
|
|
Adjusted net income
(non-GAAP)
|
|
$
|
136,820
|
|
|
$
|
133,591
|
|
|
$
|
154,773
|
|
|
$
|
102,824
|
|
|
$
|
112,622
|
|
|
$
|
425,184
|
|
|
$
|
178,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income per Common Share - Basic (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic (GAAP)
|
|
$
|
1.75
|
|
|
$
|
1.40
|
|
|
$
|
2.07
|
|
|
$
|
1.22
|
|
|
$
|
1.34
|
|
|
$
|
5.22
|
|
|
$
|
0.70
|
|
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
Effect to adjust for
PCL - NonPCD loans & unfunded commitments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.87
|
|
|
Effect to adjust for
swap termination expense, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.45
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Effect to adjust for
benefit for income taxes - carryback tax loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.44)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Effect to adjust for
FHLB prepayment penalty, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
|
|
Effect to adjust for
merger & branch consol./acq expenses, net of tax
|
|
|
0.20
|
|
|
|
0.36
|
|
|
|
0.11
|
|
|
|
0.23
|
|
|
|
0.25
|
|
|
|
0.67
|
|
|
|
1.06
|
|
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
|
|
|
0.13
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.13
|
|
|
|
—
|
|
|
Adjusted net income
per common share - Basic (non-GAAP)
|
|
$
|
1.95
|
|
|
$
|
1.89
|
|
|
$
|
2.18
|
|
|
$
|
1.45
|
|
|
$
|
1.59
|
|
|
$
|
6.02
|
|
|
$
|
3.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income per Common Share - Diluted (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Diluted (GAAP)
|
|
$
|
1.74
|
|
|
$
|
1.39
|
|
|
$
|
2.06
|
|
|
$
|
1.21
|
|
|
$
|
1.34
|
|
|
$
|
5.19
|
|
|
$
|
0.69
|
|
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
|
|
Effect to adjust for
PCL - NonPCD loans & unfunded commitments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.86
|
|
|
Effect to adjust for
swap termination expense, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.45
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Effect to adjust for
benefit for income taxes - carryback tax loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.44)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Effect to adjust for
FHLB prepayment penalty, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
|
|
Effect to adjust for
merger & branch consol./acq expenses, net of tax
|
|
|
0.20
|
|
|
|
0.35
|
|
|
|
0.11
|
|
|
|
0.23
|
|
|
|
0.24
|
|
|
|
0.66
|
|
|
|
1.06
|
|
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
|
|
|
0.13
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.13
|
|
|
|
—
|
|
|
Adjusted net income
per common share - Diluted (non-GAAP)
|
|
$
|
1.94
|
|
|
$
|
1.87
|
|
|
$
|
2.17
|
|
|
$
|
1.44
|
|
|
$
|
1.58
|
|
|
$
|
5.98
|
|
|
$
|
3.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Assets (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (GAAP)
|
|
|
1.20
|
%
|
|
|
1.00
|
%
|
|
|
1.56
|
%
|
|
|
0.90
|
%
|
|
|
1.00
|
%
|
|
|
1.25
|
%
|
|
|
0.18
|
%
|
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
Effect to adjust for
PCL - NonPCD loans & unfunded commitments
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.48
|
%
|
|
Effect to adjust for
swap termination expense
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.33
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
benefit for income taxes - carryback tax loss
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.33)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
FHLB prepayment penalty, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.00
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.00
|
%
|
|
Effect to adjust for
merger & branch consol./acq expenses, net of tax
|
|
|
0.14
|
%
|
|
|
0.26
|
%
|
|
|
0.08
|
%
|
|
|
0.18
|
%
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
|
0.27
|
%
|
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
%
|
|
|
0.09
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.03
|
%
|
|
|
—
|
%
|
|
Adjusted return on
average assets (non-GAAP)
|
|
|
1.34
|
%
|
|
|
1.35
|
%
|
|
|
1.64
|
%
|
|
|
1.08
|
%
|
|
|
1.18
|
%
|
|
|
1.44
|
%
|
|
|
0.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Equity (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (GAAP)
|
|
|
10.21
|
%
|
|
|
8.38
|
%
|
|
|
12.71
|
%
|
|
|
7.45
|
%
|
|
|
8.31
|
%
|
|
|
10.41
|
%
|
|
|
1.41
|
%
|
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
Effect to adjust for
PCL - NonPCD loans & unfunded commitments
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
3.77
|
%
|
|
Effect to adjust for
swap termination expense
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
2.74
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
benefit for income taxes - carryback tax loss
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(2.72)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
FHLB prepayment penalty, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.01
|
%
|
|
Effect to adjust for
merger & branch consol./acq expenses, net of tax
|
|
|
1.16
|
%
|
|
|
2.16
|
%
|
|
|
0.68
|
%
|
|
|
1.41
|
%
|
|
|
1.52
|
%
|
|
|
1.34
|
%
|
|
|
2.12
|
%
|
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
%
|
|
|
0.77
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
|
|
|
0.26
|
%
|
|
|
—
|
%
|
|
Adjusted return on
average equity (non-GAAP)
|
|
|
11.37
|
%
|
|
|
11.31
|
%
|
|
|
13.39
|
%
|
|
|
8.88
|
%
|
|
|
9.83
|
%
|
|
|
12.01
|
%
|
|
|
7.31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Average Common Tangible Equity (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (GAAP)
|
|
|
10.21
|
%
|
|
|
8.38
|
%
|
|
|
12.71
|
%
|
|
|
7.45
|
%
|
|
|
8.31
|
%
|
|
|
10.41
|
%
|
|
|
1.41
|
%
|
|
Effect to adjust for
securities gains
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
—
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
|
(0.00)
|
%
|
|
Effect to adjust for
PCL - NonPCD loans & unfunded commitments
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
3.77
|
%
|
|
Effect to adjust for
swap termination expense
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
2.74
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
benefit for income taxes - carryback tax loss
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
(2.72)
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
FHLB prepayment penalty, net of tax
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
0.01
|
%
|
|
Effect to adjust for
merger & branch consol./acq expenses, net of tax
|
|
|
1.17
|
%
|
|
|
2.16
|
%
|
|
|
0.68
|
%
|
|
|
1.40
|
%
|
|
|
1.52
|
%
|
|
|
1.34
|
%
|
|
|
2.13
|
%
|
|
Effect to adjust for
extinguishment of debt cost
|
|
|
—
|
%
|
|
|
0.77
|
%
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
|
|
|
0.26
|
%
|
|
|
—
|
%
|
|
Effect to adjust for
intangible assets
|
|
|
7.30
|
%
|
|
|
7.43
|
%
|
|
|
8.85
|
%
|
|
|
6.48
|
%
|
|
|
7.31
|
%
|
|
|
7.84
|
%
|
|
|
6.26
|
%
|
|
Adjusted return on
average common tangible equity (non-GAAP)
|
|
|
18.68
|
%
|
|
|
18.74
|
%
|
|
|
22.24
|
%
|
|
|
15.35
|
%
|
|
|
17.14
|
%
|
|
|
19.85
|
%
|
|
|
13.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
(Dollars in
thousands, except per share data)
|
|
Sep.
30,
|
|
|
Jun.
30,
|
|
|
Mar.
31,
|
|
|
Dec.
31,
|
|
|
Sep.
30,
|
|
|
Sep.
30,
|
|
|
Sep.
30,
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
Adjusted
Efficiency Ratio (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
64.22
|
%
|
|
|
76.28
|
%
|
|
|
61.06
|
%
|
|
|
73.59
|
%
|
|
|
58.91
|
%
|
|
|
66.99
|
%
|
|
|
64.60
|
%
|
|
Effect to adjust for
merger and branch consolidation related expenses
|
|
|
(5.06)
|
%
|
|
|
(13.38)
|
%
|
|
|
(2.79)
|
%
|
|
|
(16.07)
|
%
|
|
|
(5.61)
|
%
|
|
|
(6.94)
|
%
|
|
|
(8.52)
|
%
|
|
Adjusted efficiency
ratio
|
|
|
59.16
|
%
|
|
|
62.88
|
%
|
|
|
58.26
|
%
|
|
|
57.52
|
%
|
|
|
53.30
|
%
|
|
|
60.05
|
%
|
|
|
56.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value Per Common Share (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP)
|
|
$
|
68.55
|
|
|
$
|
67.60
|
|
|
$
|
66.42
|
|
|
$
|
65.49
|
|
|
$
|
64.34
|
|
|
|
|
|
|
|
|
|
|
Effect to adjust for
intangible assets
|
|
|
(24.57)
|
|
|
|
(24.53)
|
|
|
|
(24.40)
|
|
|
|
(24.33)
|
|
|
|
(24.51)
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (non-GAAP)
|
|
$
|
43.98
|
|
|
$
|
43.07
|
|
|
$
|
42.02
|
|
|
$
|
41.16
|
|
|
$
|
39.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity-to-Tangible Assets (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-to-assets
(GAAP)
|
|
|
11.72
|
%
|
|
|
11.78
|
%
|
|
|
11.88
|
%
|
|
|
12.30
|
%
|
|
|
12.07
|
%
|
|
|
|
|
|
|
|
|
|
Effect to adjust for
intangible assets
|
|
|
(3.87)
|
%
|
|
|
(3.94)
|
%
|
|
|
(4.02)
|
%
|
|
|
(4.20)
|
%
|
|
|
(4.24)
|
%
|
|
|
|
|
|
|
|
|
|
Tangible
equity-to-tangible assets (non-GAAP)
|
|
|
7.85
|
%
|
|
|
7.84
|
%
|
|
|
7.86
|
%
|
|
|
8.10
|
%
|
|
|
7.83
|
%
|
|
|
|
|
|
|
|
|
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:
|
|
(1)
|
Includes loan
accretion (interest) income related to the discount on acquired
loans of $5.2 million, $6.3 million, $10.4 million, $12.7 million,
and $22.4 million, respectively, during the five quarters
above.
|
|
|
|
(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, FHLB Advances prepayment
penalty, initial provision for credit losses on non-PCD loans and
unfunded commitments, income tax benefit related to the carryback
of tax losses under the CARES Act, swap termination expense,
extinguishment of debt cost and merger and branch consolidation
related expense. 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 $17.6 million, $33.0 million, $10.0 million, $19.8
million, and $21.7 million for the quarters ended September 30,
2021, June 30, 2021, March 31, 2021, December 31, 2020 and
September 30, 2020, respectively; (b) net securities gains of
$64,000, $36,000, $35,000 and $15,000 for the quarters ended
September 30, 2021, June 30, 2021, December 31, 2020 and September
30, 2020, respectively; (c) FHLB prepayment penalty of $56,000 for
the quarter ended December 31, 2020; and (d) swap termination
expense of $38.8 million for the quarter ended December 31, 2020;
(e) tax carryback losses under the CARES Act of $31.5 million for
the quarter ended December 31, 2020.
|
|
|
|
(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 Non-GAAP to GAAP" provide tables that reconcile
non-GAAP measures to GAAP.
|
|
|
|
(4)
|
Adjusted efficiency
ratio is calculated by taking the noninterest expense excluding
swap termination expense, branch consolidation cost and merger
cost, extinguishment of debt cost, tax carryback losses under the
CARES Act, amortization of intangible assets, and the FHLB
prepayment penalty divided by net interest income and
noninterest income excluding securities gains (losses). The pre-tax
amortization expenses of intangible assets were $8.5 million, $9.0
million, $9.2 million, $9.8 million, and $9.6 million, for the
quarters ended September 30, 2021, June 30, 2021, March 31, 2021,
December 31, 2020, and September 30, 2020, 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)
|
September 30, 2021
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, 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 low interest rate
environment and historically low yield curve primarily due to
government programs in place under the CARES Act and otherwise in
response to the Covid19 pandemic, 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 CSFL
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 each party'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 each party's
businesses into the other's businesses, (iii) the amount of the
costs, fees, expenses and charges related to the merger, (iv)
reputational risk and the reaction of each company's customers,
suppliers, employees or other business partners to the merger, (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) disruption to the parties' businesses as a result of the
announcement and pendency of the merger, (iii) the occurrence of
any event, change or other circumstances that could give rise to
the termination of the merger agreement, (iv) the risk that the
integration of each party'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 each party's
businesses into the other's businesses, (v) the failure to obtain
the necessary approvals by the shareholders of SouthState or
Atlantic Capital, (vi) the amount of the costs, fees, expenses and
charges related to the merger, (vii) the ability by each of
SouthState and Atlantic Capital to obtain required governmental
approvals of the merger (and the risk that such approvals may
result in the imposition of conditions that could adversely affect
the combined company or the expected benefits of the
transaction), (viii) reputational risk and the reaction of
each company's customers, suppliers, employees or other business
partners to the merger, (ix) the failure of the closing conditions
in the merger agreement to be satisfied, or any unexpected delay in
closing the merger, (x) the possibility that the merger may be more
expensive to complete than anticipated, including as a result of
unexpected factors or events, (xi) the dilution caused by
SouthState's issuance of additional shares of its common stock in
the merger, (xii) general competitive, economic, political and
market conditions, and (xiii) other factors that may affect future
results of Atlantic Capital and SouthState including changes in
asset quality and credit risk; the inability to sustain revenue and
earnings growth; changes in interest rates and capital markets;
inflation; customer borrowing, repayment, investment and deposit
practices; the impact, extent and timing of technological changes;
capital management activities; and other actions of the Board of
Governors of the Federal Reserve System and Office of the
Comptroller of the Currency and legislative and regulatory actions
and reforms (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 continued work
from home environment and to our results of operations due to
government stimulus and other interventions to blunt 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 matters; (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) the risks of fluctuations in
market prices for SouthState common stock that may or may not
reflect economic condition or performance of SouthState; (26) 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; (27) ownership dilution risk associated with
potential acquisitions in which SouthState's stock may be issued as
consideration for an acquired company; (28) operational,
technological, cultural, regulatory, legal, credit and other risks
associated with the exploration, consummation and integration of
potential future acquisition, whether involving stock or cash
consideration; (29) major catastrophes such as hurricanes,
tornados, earthquakes, floods or other natural or human disasters,
including infectious disease outbreaks, including 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; (30) terrorist activities risk that results
in loss of consumer confidence and economic disruptions; (31) risks
related to the proposed merger 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) disruption to the
parties' businesses as a result of the announcement and pendency of
the merger, (iii) the occurrence of any event, change or other
circumstances that could give rise to the termination of the merger
agreement, (iv) the risk that the integration of each party'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 each party's businesses into the other's
businesses, (v) the failure to obtain the necessary approvals by
the shareholders of SouthState or Atlantic Capital, (vi) the amount
of the costs, fees, expenses and charges related to the merger,
(vii) the ability by each of SouthState and Atlantic Capital to
obtain required governmental approvals of the merger (and the risk
that such approvals may result in the imposition of conditions that
could adversely affect the combined company or the expected
benefits of the transaction), (viii) reputational risk and the
reaction of each company's customers, suppliers, employees or other
business partners to the merger, (ix) the failure of the closing
conditions in the merger agreement to be satisfied, or any
unexpected delay in closing the merger, (x) the possibility that
the merger may be more expensive to complete than anticipated,
including as a result of unexpected factors or events, (xi) the
dilution caused by SouthState's issuance of additional shares of
its common stock in the merger, (xii) general competitive,
economic, political and market conditions, and (xiii) other factors
that may affect future results of Atlantic Capital and SouthState
including changes in asset quality and credit risk, 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