SouthState Corporation Reports Third Quarter 2022 Results, Declares Quarterly Cash Dividend

Rhea-AI Summary

SouthState Corporation (NASDAQ: SSB) reported strong Q3 2022 results with a net income of $133 million and earnings per share (EPS) of $1.75. Adjusted EPS reached $1.89, driven by a pre-provision net revenue of $208 million. The net interest margin expanded to 3.53%, while loans increased by $901 million annually. The bank declared a dividend of $0.50 per share, payable on November 18, 2022. However, deposits saw a temporary decline of $1.2 billion, attributed to payroll ACH payments. This quarter reflects SouthState's resilience amidst an uncertain economic landscape.

Positive

• Net income of $133 million, up from $119 million in Q2 2022.
• Earnings per share (EPS) of $1.75; adjusted EPS of $1.89, an increase from the previous quarter.
• Pre-provision net revenue (PPNR) rose to $208 million, indicating strong operational efficiency.
• Net interest margin expanded to 3.53%, enhancing profitability.
• Declared a quarterly cash dividend of $0.50 per share, payable on November 18, 2022.

Negative

• Average deposits decreased by $384 million, or 4% annualized, impacting liquidity.
• Period-end deposits fell by $1.2 billion, mainly due to payroll-related factors.
• Noninterest income declined by $11 million compared to the previous quarter.

WINTER HAVEN, Fla., Oct. 24, 2022 /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, 2022.

"SouthState reported very strong performance in the third quarter," said John C. Corbett, Chief Executive Officer.  "We produced another record for pre-provision net revenue, robust net interest margin expansion, and another quarter of good expense control.  We are also pleased to have net loan recoveries, though we remain vigilant in the face of an uncertain economy."

Highlights of the third quarter of 2022 include:

Returns

• Reported Earnings per Share ("EPS") of $1.75; Adjusted Diluted EPS (Non-GAAP) of $1.89
• Net Income of $133.0 million; Adjusted Net Income (Non-GAAP) of $143.7 million
• Return on Average Common Equity of 10.3% and Reported Return on Average Tangible Common Equity (Non-GAAP) of 18.0%; Adjusted Return on Average Tangible Common Equity (Non-GAAP) of 19.4%*
• Return on Average Assets ("ROAA") of 1.16%; Adjusted ROAA (Non-GAAP) of 1.26%*
• PPNR per weighted average diluted share (Non-GAAP) of $2.74, up 18% from the prior quarter's $2.32 and up 47% from $1.87 in the year ago quarter
• Book Value per Share of $65.03 decreased by $1.61 per share compared to the prior quarter primarily due to the $2.98 per share impact from the change in Accumulated Other Comprehensive Loss ("AOCI")
• Tangible Book Value ("TBV") per Share (Non-GAAP) of $37.97, down $1.50 from the prior quarter, also due to the impact of AOCI

Performance

• Net Interest Income of $358 million; Core Net Interest Income (excluding loan accretion and deferred fees on PPP) (Non-GAAP) increased $47 million from prior quarter
• Net Interest Margin ("NIM"), non-tax equivalent and tax equivalent (Non-GAAP) of 3.53% and 3.55%, respectively, up 0.43% from prior quarter
• Noninterest Income of $77 million declined $11 million compared to the prior quarter due to mortgage banking and correspondent banking and capital markets income; Noninterest Income represented 0.67% of average assets for the third quarter of 2022*
• Noninterest Expense, excluding merger and branch consolidation related expense (Non-GAAP), increased $1 million compared to the prior quarter
• Efficiency ratio improved to 53% from the prior quarter's 55%; adjusted efficiency ratio (Non-GAAP) improved to 50% from the prior quarter's 54%

∗ Annualized percentages

Balance Sheet / Credit

• Fed funds and interest-earning cash of $2.4 billion (5% of assets) and ending loan to deposit ratio of 77% provide balance sheet flexibility
• Loans increased $901 million, or 13% annualized, led by consumer real estate, commercial and industrial, and commercial real estate loans
• Average deposits declined $384 million, or 4% annualized; average noninterest-bearing deposits remained flat from the prior quarter; total deposit cost was 0.11%, up 5 basis points from prior quarter
• Period-end deposits declined $1.2 billion primarily due to the timing of ACH payments for the payroll business.  In a quarter ending on a Friday, such as Q3 2022, balances temporarily contract as payments are made from the accounts of payroll companies to their clients' employees.  The impact on the third quarter 2022 ending balances was a $457 million temporary decline in noninterest bearing deposits.  The payroll deposit impact, along with the average balance decline above represents the majority of the $1 billion reduction in period end core deposits.
• Net recoveries of $1.3 million, or (0.02)% annualized

Subsequent Events

• The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.50 per share, payable on November 18, 2022 to shareholders of record as of November 11, 2022

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		2022			2022			2022			2021			2021			2022			2021
Interest income
Loans, including fees (1)		$	312,856		$	272,000		$	233,617		$	238,310		$	246,065		$	818,473		$	752,209
Investment securities, trading securities, federal funds sold and securities
purchased under agreements to resell			61,954			53,659			36,847			29,071			25,384			152,460			65,257
Total interest income			374,810			325,659			270,464			267,381			271,449			970,933			817,466
Interest expense
Deposits			10,137			5,776			4,628			5,121			7,267			20,541			28,061
Federal funds purchased, securities sold under agreements
to repurchase, and other borrowings			6,464			5,604			4,362			4,156			4,196			16,430			14,291
Total interest expense			16,601			11,380			8,990			9,277			11,463			36,971			42,352
Net interest income			358,209			314,279			261,474			258,104			259,986			933,962			775,114
Provision (recovery) for credit losses			23,876			19,286			(8,449)			(9,157)			(38,903)			34,713			(156,116)
Net interest income after provision (recovery) for credit losses			334,333			294,993			269,923			267,261			298,889			899,249			931,230
Noninterest income			77,178			88,292			86,090			91,894			87,010			251,560			262,315
Noninterest expense
Operating expense			226,754			225,779			218,324			217,392			214,672			670,857			652,080
Merger and branch consolidation related expense			13,679			5,390			10,276			6,645			17,618			29,345			60,598
Extinguishment of debt cost			—			—			—			—			—			—			11,706
Total noninterest expense			240,433			231,169			228,600			224,037			232,290			700,202			724,384
Income before provision for income taxes			171,078			152,116			127,413			135,118			153,609			450,607			469,161
Income taxes provision			38,035			32,941			27,084			28,272			30,821			98,060			100,464
Net income		$	133,043		$	119,175		$	100,329		$	106,846		$	122,788		$	352,547		$	368,697
Adjusted net income (non-GAAP) (2)
Net income (GAAP)		$	133,043		$	119,175		$	100,329		$	106,846		$	122,788		$	352,547		$	368,697
Securities gains, net of tax			(24)			—			—			(2)			(51)			(24)			(79)
Initial provision for credit losses - NonPCD loans and UFC from ACBI, net of tax			—			—			13,492			—			—			13,492			—
Merger and branch consolidation related expense, net of tax			10,638			4,223			8,092			5,255			14,083			22,953			47,485
Extinguishment of debt cost, net of tax			—			—			—			—			—			—			9,081
Adjusted net income (non-GAAP)		$	143,657		$	123,398		$	121,913		$	112,099		$	136,820		$	388,968		$	425,184
Basic earnings per common share		$	1.76		$	1.58		$	1.40		$	1.53		$	1.75		$	4.75		$	5.22
Diluted earnings per common share		$	1.75		$	1.57		$	1.39		$	1.52		$	1.74		$	4.71		$	5.19
Adjusted net income per common share - Basic (non-GAAP) (2)		$	1.90		$	1.64		$	1.71		$	1.61		$	1.95		$	5.24		$	6.02
Adjusted net income per common share - Diluted (non-GAAP) (2)		$	1.89		$	1.62		$	1.69		$	1.59		$	1.94		$	5.20		$	5.98
Dividends per common share		$	0.50		$	0.49		$	0.49		$	0.49		$	0.49		$	1.48		$	1.43
Basic weighted-average common shares outstanding			75,605,960			75,461,157			71,447,429			69,651,334			70,066,235			74,184,816			70,643,289
Diluted weighted-average common shares outstanding			76,182,131			76,094,198			72,110,746			70,289,971			70,575,726			74,791,139			71,108,204
Effective tax rate			22.23 %			21.66 %			21.26 %			20.92 %			20.06 %			21.76 %			21.41 %

 

Performance and Capital Ratios

		Three Months Ended															Nine Months Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,		Sep. 30,
		2022			2022			2022			2021			2021			2022		2021
PERFORMANCE RATIOS
Return on average assets (annualized)			1.16	%		1.04	%		0.95	%		1.02	%		1.20	%	1.05	%	1.25	%
Adjusted return on average assets (annualized) (non-GAAP) (2)			1.26	%		1.08	%		1.15	%		1.08	%		1.34	%	1.16	%	1.44	%
Return on average common equity (annualized)			10.31	%		9.36	%		8.24	%		8.84	%		10.21	%	9.32	%	10.41	%
Adjusted return on average common equity (annualized) (non-GAAP) (2)			11.13	%		9.69	%		10.01	%		9.28	%		11.37	%	10.28	%	12.01	%
Return on average tangible common equity (annualized) (non-GAAP) (3)			17.99	%		16.59	%		13.97	%		14.63	%		16.86	%	16.19	%	17.34	%
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)			19.36	%		17.15	%		16.79	%		15.30	%		18.68	%	17.77	%	19.85	%
Efficiency ratio (tax equivalent)			53.14	%		54.92	%		62.99	%		61.27	%		64.22	%	56.63	%	66.99	%
Adjusted efficiency ratio (non-GAAP) (4)			50.02	%		53.59	%		60.05	%		59.39	%		59.16	%	54.17	%	60.05	%
Dividend payout ratio (5)			28.44	%		31.03	%		33.71	%		32.02	%		27.94	%	30.82	%	27.39	%
Book value per common share		$	65.03		$	66.64		$	68.30		$	69.27		$	68.55
Tangible book value per common share (non-GAAP) (3)		$	37.97		$	39.47		$	41.05		$	44.62		$	43.98
CAPITAL RATIOS
Equity-to-assets			10.9	%		10.9	%		11.2	%		11.4	%		11.7	%
Tangible equity-to-tangible assets (non-GAAP) (3)			6.7	%		6.8	%		7.0	%		7.7	%		7.8	%
Tier 1 leverage (6) *			8.3	%		8.0	%		8.5	%		8.1	%		8.1	%
Tier 1 common equity (6) *			11.0	%		11.1	%		11.4	%		11.8	%		11.9	%
Tier 1 risk-based capital (6) *			11.0	%		11.1	%		11.4	%		11.8	%		11.9	%
Total risk-based capital (6) *			12.9	%		13.0	%		13.3	%		13.6	%		13.8	%

*

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		2022			2022			2022			2021			2021
Assets
Cash and due from banks		$	394,794		$	561,516		$	588,372		$	476,653		$	597,321
Federal Funds Sold and interest-earning deposits with banks			2,414,901			4,160,583			5,444,234			6,366,494			5,701,002
Cash and cash equivalents			2,809,695			4,722,099			6,032,606			6,843,147			6,298,323
Trading securities, at fair value			51,940			88,088			74,234			77,689			61,294
Investment securities:
Securities held to maturity			2,738,178			2,806,465			2,827,769			1,819,901			1,641,485
Securities available for sale, at fair value			5,369,610			5,666,008			5,924,206			5,193,478			4,631,554
Other investments			179,755			179,815			179,258			160,568			160,592
Total investment securities			8,287,543			8,652,288			8,931,233			7,173,947			6,433,631
Loans held for sale			34,477			73,880			130,376			191,723			242,813
Loans:
Purchased credit deteriorated			1,544,562			1,707,592			1,939,033			1,987,322			2,255,874
Purchased non-credit deteriorated			6,365,175			6,908,234			7,633,824			5,890,069			6,554,647
Non-acquired			20,926,566			19,319,440			16,983,570			16,050,775			14,978,428
Less allowance for credit losses			(324,398)			(319,708)			(300,396)			(301,807)			(314,144)
Loans, net			28,511,905			27,615,558			26,256,031			23,626,359			23,474,805
Other real estate owned ("OREO")			2,160			1,431			3,290			2,736			3,687
Premises and equipment, net			531,160			562,781			568,332			558,499			569,817
Bank owned life insurance			960,052			953,970			942,922			783,049			778,552
Mortgage servicing rights			90,459			87,463			83,339			65,620			60,922
Core deposit and other intangibles			125,390			132,694			140,364			128,067			136,584
Goodwill			1,922,525			1,922,525			1,924,024			1,581,085			1,581,085
Other assets			1,851,303			1,394,645			1,114,790			928,111			1,262,195
Total assets		$	45,178,609		$	46,207,422		$	46,201,541		$	41,960,032		$	40,903,708
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing		$	13,660,244		$	14,337,018		$	14,052,332		$	11,498,840		$	11,333,881
Interest-bearing			24,005,777			24,538,833			24,723,498			23,555,989			22,226,677
Total deposits			37,666,021			38,875,851			38,775,830			35,054,829			33,560,558
Federal funds purchased and securities
sold under agreements to repurchase			557,802			669,999			770,409			781,239			859,736
Other borrowings			392,368			392,460			405,553			327,066			326,807
Reserve for unfunded commitments			52,991			32,543			30,368			30,510			28,289
Other liabilities			1,588,241			1,196,144			1,044,973			963,448			1,335,377
Total liabilities			40,257,423			41,166,997			41,027,133			37,157,092			36,110,767
Shareholders' equity:
Common stock - $2.50 par value; authorized 160,000,000 shares			189,191			189,103			189,403			173,331			174,795
Surplus			4,207,040			4,195,976			4,214,897			3,653,098			3,693,622
Retained earnings			1,241,413			1,146,230			1,064,064			997,657			925,044
Accumulated other comprehensive (loss) income			(716,458)			(490,884)			(293,956)			(21,146)			(520)
Total shareholders' equity			4,921,186			5,040,425			5,174,408			4,802,940			4,792,941
Total liabilities and shareholders' equity		$	45,178,609		$	46,207,422		$	46,201,541		$	41,960,032		$	40,903,708
Common shares issued and outstanding			75,676,445			75,641,322			75,761,018			69,332,297			69,918,037

 

Net Interest Income and Margin

		Three Months Ended
		Sep. 30, 2022								Jun. 30, 2022								Sep. 30, 2021
(Dollars in thousands)		Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
YIELD ANALYSIS		Balance			Expense			Rate		Balance			Expense			Rate		Balance			Expense			Rate
Interest-Earning Assets:
Federal funds sold and interest-earning deposits with banks		$	3,193,313		$	16,668		2.07 %		$	4,597,551		$	8,635		0.75 %		$	6,072,760		$	2,199		0.14 %
Investment securities			8,705,657			45,286		2.06 %			8,880,419			45,024		2.03 %			6,084,812			23,185		1.51 %
Loans held for sale			47,119			620		5.22 %			76,567			791		4.14 %			184,547			1,307		2.81 %
Total loans, excluding PPP			28,267,741			312,172		4.38 %			27,055,042			271,003		4.02 %			22,937,207			226,083		3.91 %
Total PPP loans			27,236			64		0.93 %			77,816			206		1.06 %			939,111			18,675		7.89 %
Total loans held for investment			28,294,977			312,236		4.38 %			27,132,858			271,209		4.01 %			23,876,318			244,758		4.07 %
Total interest-earning assets			40,241,066			374,810		3.70 %			40,687,395			325,659		3.21 %			36,218,437			271,449		2.97 %
Noninterest-earning assets			5,103,869								5,160,394								4,375,329
Total Assets		$	45,344,935							$	45,847,789							$	40,593,766
Interest-Bearing Liabilities:
Transaction and money market accounts		$	17,862,637		$	7,956		0.18 %		$	18,316,890		$	3,836		0.08 %		$	15,908,784		$	3,110		0.08 %
Savings deposits			3,621,493			488		0.05 %			3,548,192			143		0.02 %			3,126,055			241		0.03 %
Certificates and other time deposits			2,627,280			1,693		0.26 %			2,776,478			1,797		0.26 %			3,256,488			3,916		0.48 %
Federal funds purchased			240,814			1,312		2.16 %			333,326			628		0.76 %			479,960			101		0.08 %
Repurchase agreements			376,985			194		0.20 %			403,008			153		0.15 %			380,850			158		0.16 %
Other borrowings			392,427			4,958		5.01 %			405,241			4,823		4.77 %			334,256			3,937		4.67 %
Total interest-bearing liabilities			25,121,636			16,601		0.26 %			25,783,135			11,380		0.18 %			23,486,393			11,463		0.19 %
Noninterest-bearing liabilities ("Non-IBL")			15,101,739								14,955,329								12,333,922
Shareholders' equity			5,121,560								5,109,325								4,773,451
Total Non-IBL and shareholders' equity			20,223,299								20,064,654								17,107,373
Total Liabilities and Shareholders' Equity		$	45,344,935							$	45,847,789							$	40,593,766
Net Interest Income and Margin (Non-Tax Equivalent)					$	358,209		3.53 %					$	314,279		3.10 %					$	259,986		2.85 %
Net Interest Margin (Tax Equivalent)								3.55 %								3.12 %								2.86 %
Total Deposit Cost (without Debt and Other Borrowings)								0.11 %								0.06 %								0.09 %
Overall Cost of Funds (including Demand Deposits)								0.17 %								0.12 %								0.13 %
Total Accretion on Acquired Loans (1)					$	9,550							$	12,770							$	5,243
Total Deferred Fees on PPP Loans					$	—							$	8							$	16,369
Tax Equivalent Adjustment					$	2,345							$	2,249							$	1,477

(1)	The remaining loan discount on acquired loans to be accreted into loan interest income totals $79.5 million as of September 30, 2022.

 

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)		2022			2022			2022			2021			2021			2022			2021
Noninterest Income:
Fees on deposit accounts		$	31,188		$	33,658		$	28,902		$	30,293		$	26,130		$	93,748		$	75,348
Mortgage banking income			2,262			5,480			10,594			12,044			15,560			18,336			52,555
Trust and investment services income			9,603			9,831			9,718			9,520			9,150			29,152			27,461
Securities gains, net			30			—			—			2			64			30			100
Correspondent banking and capital market income			20,552			27,604			27,994			30,216			25,164			76,150			79,789
Bank owned life insurance income			6,082			6,246			5,260			4,932			5,132			17,588			13,478
Other			7,461			5,473			3,622			4,887			5,810			16,556			13,584
Total Noninterest Income		$	77,178		$	88,292		$	86,090		$	91,894		$	87,010		$	251,560		$	262,315
Noninterest Expense:
Salaries and employee benefits		$	139,554		$	137,037		$	137,673		$	137,321		$	136,969		$	414,264		$	414,709
Occupancy expense			22,490			22,759			21,840			22,915			23,135			67,089			69,310
Information services expense			20,714			19,947			19,193			18,489			18,061			59,854			55,928
OREO and loan related expense (income)			532			(3)			(238)			(740)			1,527			291			2,769
Business development and staff related			5,090			4,916			4,276			4,577			4,424			14,282			12,100
Amortization of intangibles			7,837			8,847			8,494			8,517			8,543			25,178			26,675
Professional fees			3,495			4,331			3,749			2,639			2,415			11,575			7,990
Supplies and printing expense			2,621			2,400			2,189			2,179			2,310			7,210			7,480
FDIC assessment and other regulatory charges			6,300			5,332			4,812			4,965			4,245			16,444			13,017
Advertising and marketing			2,170			2,286			1,763			2,375			2,185			6,219			5,584
Other operating expenses			15,951			17,927			14,573			14,155			10,858			48,451			36,518
Merger and branch consolidation related expense			13,679			5,390			10,276			6,645			17,618			29,345			60,598
Extinguishment of debt cost			—			—			—			—			—			—			11,706
Total Noninterest Expense		$	240,433		$	231,169		$	228,600		$	224,037		$	232,290		$	700,202		$	724,384

 

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		2022			2022			2022			2021			2021
Construction and land development * †		$	2,550,552		$	2,527,062		$	2,316,313		$	2,029,216		$	2,032,731
Investor commercial real estate*			8,641,316			8,393,630			8,158,457			7,432,503			7,131,192
Commercial owner occupied real estate			5,426,216			5,421,725			5,346,583			4,970,116			4,988,490
Commercial and industrial, excluding PPP			4,962,616			4,760,355			4,447,279			3,516,485			3,458,520
Consumer real estate *			5,977,120			5,505,531			4,988,736			4,806,958			4,733,567
Consumer/other			1,263,362			1,279,790			1,179,697			928,240			943,243
Total loans, excluding PPP			28,821,182			27,888,093			26,437,065			23,683,518			23,287,743
PPP loans			15,121			47,173			119,362			244,648			501,206
Total Loans		$	28,836,303		$	27,935,266		$	26,556,427		$	23,928,166		$	23,788,949

* 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 $881.3 million, $795.7 million, $733.7 million, $686.5 million, and $665.0 million for the quarters ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.

 

		Ending Balance
(Dollars in thousands)		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
DEPOSITS		2022			2022			2022			2021			2021
Noninterest-bearing checking		$	13,660,244		$	14,337,018		$	14,052,332		$	11,498,840		$	11,333,881
Interest-bearing checking			8,741,447			8,953,332			9,275,208			9,018,987			7,920,236
Savings			3,602,560			3,616,819			3,479,743			3,350,547			3,201,543
Money market			9,126,058			9,264,257			9,140,005			8,376,380			8,110,162
Time deposits			2,535,712			2,704,425			2,828,542			2,810,075			2,994,736
Total Deposits		$	37,666,021		$	38,875,851		$	38,775,830		$	35,054,829		$	33,560,558
Core Deposits (excludes Time Deposits)		$	35,130,309		$	36,171,426		$	35,947,288		$	32,244,754		$	30,565,822

 

Asset Quality

		Ending Balance
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)		2022			2022			2022			2021			2021
NONPERFORMING ASSETS:
Non-acquired
Non-acquired nonaccrual loans and restructured loans on nonaccrual		$	34,374		$	20,716		$	19,582		$	18,700		$	23,800
Accruing loans past due 90 days or more			2,358			1,371			22,818			4,612			1,729
Non-acquired OREO and other nonperforming assets			114			93			464			590			365
Total non-acquired nonperforming assets			36,846			22,180			42,864			23,902			25,894
Acquired
Acquired nonaccrual loans and restructured loans on nonaccrual			61,866			63,526			59,267			56,718			64,583
Accruing loans past due 90 days or more			1,430			4,418			12,768			251			89
Acquired OREO and other nonperforming assets			2,234			1,577			3,118			2,875			3,804
Total acquired nonperforming assets			65,530			69,521			75,153			59,844			68,476
Total nonperforming assets		$	102,376		$	91,701		$	118,017		$	83,746		$	94,370

 

		Three Months Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2022			2022			2022			2021			2021
ASSET QUALITY RATIOS:
Allowance for credit losses as a percentage of loans			1.12 %			1.14 %			1.13 %			1.26 %			1.32 %
Allowance for credit losses as a percentage of loans, excluding PPP loans			1.13 %			1.15 %			1.14 %			1.27 %			1.35 %
Allowance for credit losses as a percentage of nonperforming loans			324.30 %			355.11 %			262.50 %			375.94 %			348.27 %
Allowance for credit losses, including reserve for unfunded commitments, as a percentage of loans, excluding PPP loans			1.31 %			1.26 %			1.25 %			1.40 %			1.47 %
Net (recoveries) charge-offs as a percentage of average loans (annualized)			(0.02) %			0.03 %			0.04 %			0.02 %			0.00 %
Total nonperforming assets as a percentage of total assets			0.23 %			0.20 %			0.26 %			0.20 %			0.23 %
Nonperforming loans as a percentage of period end loans			0.35 %			0.32 %			0.43 %			0.34 %			0.38 %

 

Current Expected Credit Losses ("CECL")

Below is a table showing the roll forward of the ACL and UFC for the third quarter of 2022:

		Allowance for Credit Losses ("ACL and UFC")
		NonPCD ACL			PCD ACL			Total ACL			UFC
Ending balance 6/30/2022		$	257,428		$	62,280		$	319,708		$	32,543
Charge offs			(4,950)			—			(4,950)			—
Acquired charge offs			(292)			(1,884)			(2,176)			—
Recoveries			1,783			—			1,783			—
Acquired recoveries			2,597			4,008			6,605			—
Provision (recovery) for credit losses			14,353			(10,925)			3,428			20,448
Ending balance 9/30/2022		$	270,919		$	53,479		$	324,398		$	52,991
Period end loans (includes PPP Loans)		$	27,291,741		$	1,544,562		$	28,836,303			N/A
Reserve to Loans (includes PPP Loans)			0.99 %			3.46 %			1.12 %			N/A
Period end loans (excludes PPP Loans)		$	27,276,620		$	1,544,562		$	28,821,182			N/A
Reserve to Loans (excludes PPP Loans)			0.99 %			3.46 %			1.13 %			N/A
Unfunded commitments (off balance sheet) *											$	9,896,528
Reserve to unfunded commitments (off balance sheet)												0.54 %

* 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 9:00 a.m. Eastern Time on October 25, 2022.  Callers wishing to participate may call toll-free by dialing 844-200-6205.  The number for international participants is (929) 526-1599.  The conference ID number is 879329.   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 25, 2022 on the Investor Relations section of SouthStateBank.com.

SouthState Corporation is a financial services company headquartered in Winter Haven, Florida.  SouthState Bank, N.A., the Company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas and Virginia.  The Bank also serves clients coast to coast through its correspondent banking division.  Additional information is available at SouthStateBank.com.

Non-GAAP Measures

Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures.  Management believes that these non-GAAP measures provide additional useful information, which allows readers to evaluate the ongoing performance of the Company.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.

(Dollars in thousands, except per share data)		Three Months Ended
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021
Net income (GAAP)		$	133,043			$	119,175			$	100,329			$	106,846			$	122,788
Provision (recovery) for credit losses			23,876				19,286				(8,449)				(9,157)				(38,903)
Tax provision			38,035				32,941				27,084				28,272				30,821
Merger and branch consolidation related expense			13,679				5,390				10,276				6,645				17,618
Securities gains			(30)				—				—				(2)				(64)
Pre-provision net revenue (PPNR) (Non-GAAP)		$	208,603			$	176,792			$	129,240			$	132,604			$	132,260
Average asset balance (GAAP)		$	45,344,935			$	45,847,789			$	42,946,332			$	41,359,708			$	40,593,766
PPNR ROAA			1.83	%			1.55	%			1.22	%			1.27	%			1.29	%
Diluted weighted-average common shares outstanding			76,182				76,094				72,111				70,290				70,576
PPNR per weighted-average common shares outstanding		$	2.74			$	2.32			$	1.79			$	1.89			$	1.87

 

(Dollars in thousands)		Three Months Ended
CORE NET INTEREST INCOME (NON-GAAP)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021
Net interest income (GAAP)		$	358,209			$	314,279			$	261,474			$	258,104			$	259,986
Less:
Total accretion on acquired loans			9,550				12,770				6,741				7,707				5,243
Total deferred fees on PPP loans			—				8				983				5,655				16,369
Core net interest income (Non-GAAP)		$	348,659			$	301,501			$	253,750			$	244,742			$	238,374
NET INTEREST MARGIN ("NIM"), TAX EQUIVALENT (NON-GAAP)
Net interest income (GAAP)		$	358,209			$	314,279			$	261,474			$	258,104			$	259,986
Total average interest-earning assets			40,241,066				40,687,395				38,527,023				37,031,640				36,218,437
NIM, non-tax equivalent			3.53	%			3.10	%			2.75	%			2.77	%			2.85	%
Tax equivalent adjustment (included in NIM, tax equivalent)			2,345				2,249				1,885				1,734				1,477
Net interest income, tax equivalent (Non-GAAP)		$	360,554			$	316,528			$	263,359			$	259,838			$	261,463
NIM, tax equivalent (Non-GAAP)			3.55	%			3.12	%			2.77	%			2.78	%			2.86	%

 

		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		2022				2022				2022				2021				2021				2022				2021
Adjusted Net Income (non-GAAP) (2)
Net income (GAAP)		$	133,043			$	119,175			$	100,329			$	106,846			$	122,788			$	352,547			$	368,697
Securities gains, net of tax			(24)				—				—				(2)				(51)				(24)				(79)
PCL - NonPCD loans and UFC, net of tax			—				—				13,492				—				—				13,492				—
Merger and branch consolidation related expense, net of tax			10,638				4,223				8,092				5,255				14,083				22,953				47,485
Extinguishment of debt cost, net of tax			—				—				—				—				—				—				9,081
Adjusted net income (non-GAAP)		$	143,657			$	123,398			$	121,913			$	112,099			$	136,820			$	388,968			$	425,184
Adjusted Net Income per Common Share - Basic (2)
Earnings per common share - Basic (GAAP)		$	1.76			$	1.58			$	1.40			$	1.53			$	1.75			$	4.75			$	5.22
Effect to adjust for securities gains			(0.00)				—				—				(0.00)				(0.00)				(0.00)				(0.00)
Effect to adjust for PCL - NonPCD loans and UFC, net of tax			—				—				0.19				—				—				0.18				—
Effect to adjust for merger and branch consolidation related expense, net of tax			0.14				0.06				0.12				0.08				0.20				0.31				0.67
Effect to adjust for extinguishment of debt cost			—				—				—				—				—				—				0.13
Adjusted net income per common share - Basic (non-GAAP)		$	1.90			$	1.64			$	1.71			$	1.61			$	1.95			$	5.24			$	6.02
Adjusted Net Income per Common Share - Diluted (2)
Earnings per common share - Diluted (GAAP)		$	1.75			$	1.57			$	1.39			$	1.52			$	1.74			$	4.71			$	5.19
Effect to adjust for securities gains			(0.00)				—				—				(0.00)				(0.00)				(0.00)				(0.00)
Effect to adjust for PCL - NonPCD loans and UFC, net of tax			—				—				0.19				—				—				0.18				—
Effect to adjust for merger and branch consolidation related expense, net of tax			0.14				0.05				0.11				0.07				0.20				0.31				0.66
Effect to adjust for extinguishment of debt cost			—				—				—				—				—				—				0.13
Adjusted net income per common share - Diluted (non-GAAP)		$	1.89			$	1.62			$	1.69			$	1.59			$	1.94			$	5.20			$	5.98
Adjusted Return on Average Assets (2)
Return on average assets (GAAP)			1.16	%			1.04	%			0.95	%			1.02	%			1.20	%			1.05	%			1.25	%
Effect to adjust for securities gains			(0.00)	%			—	%			—	%			(0.00)	%			(0.00)	%			(0.00)	%			(0.00)	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax			—	%			—	%			0.13	%			—	%			—	%			0.04	%			—	%
Effect to adjust for merger and branch consolidation related expense, net of tax			0.10	%			0.04	%			0.07	%			0.06	%			0.14	%			0.07	%			0.16	%
Effect to adjust for extinguishment of debt cost			—	%			—	%			—	%			—	%			—	%			—	%			0.03	%
Adjusted return on average assets (non-GAAP)			1.26	%			1.08	%			1.15	%			1.08	%			1.34	%			1.16	%			1.44	%
Adjusted Return on Average Common Equity (2)
Return on average common equity (GAAP)			10.31	%			9.36	%			8.24	%			8.84	%			10.21	%			9.32	%			10.41	%
Effect to adjust for securities gains			(0.00)	%			—	%			—	%			(0.00)	%			(0.00)	%			(0.00)	%			(0.00)	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax			—	%			—	%			1.11	%			—	%			—	%			0.36	%			—	%
Effect to adjust for merger and branch consolidation related expense, net of tax			0.82	%			0.33	%			0.66	%			0.44	%			1.16	%			0.60	%			1.34	%
Effect to adjust for extinguishment of debt cost			—	%			—	%			—	%			—	%			—	%			—	%			0.26	%
Adjusted return on average common equity (non-GAAP)			11.13	%			9.69	%			10.01	%			9.28	%			11.37	%			10.28	%			12.01	%
Return on Average Common Tangible Equity (3)
Return on average common equity (GAAP)			10.31	%			9.36	%			8.24	%			8.84	%			10.21	%			9.32	%			10.41	%
Effect to adjust for intangible assets			7.68	%			7.23	%			5.73	%			5.79	%			6.65	%			6.87	%			6.93	%
Return on average tangible equity (non-GAAP)			17.99	%			16.59	%			13.97	%			14.63	%			16.86	%			16.19	%			17.34	%
Adjusted Return on Average Common Tangible Equity (2) (3)
Return on average common equity (GAAP)			10.31	%			9.36	%			8.24	%			8.84	%			10.21	%			9.32	%			10.41	%
Effect to adjust for securities gains			(0.00)	%			—	%			—	%			(0.00)	%			(0.00)	%			(0.00)	%			(0.00)	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax			—	%			—	%			1.11	%			—	%			—	%			0.36	%			—	%
Effect to adjust for merger and branch consolidation related expense, net of tax			0.82	%			0.33	%			0.66	%			0.43	%			1.17	%			0.60	%			1.34	%
Effect to adjust for extinguishment of debt cost			—	%			—	%			—	%			—	%			—	%			—	%			0.26	%
Effect to adjust for intangible assets			8.23	%			7.46	%			6.78	%			6.03	%			7.30	%			7.49	%			7.84	%
Adjusted return on average common tangible equity (non-GAAP)			19.36	%			17.15	%			16.79	%			15.30	%			18.68	%			17.77	%			19.85	%
Adjusted Efficiency Ratio (4)
Efficiency ratio			53.14	%			54.92	%			62.99	%			61.27	%			64.22	%			56.63	%			66.99	%
Effect to adjust for merger and branch consolidation related expense			(3.12)	%			(1.33)	%			(2.94)	%			(1.89)	%			(5.06)	%			(2.46)	%			(6.94)	%
Adjusted efficiency ratio			50.02	%			53.59	%			60.05	%			59.39	%			59.16	%			54.17	%			60.05	%
Tangible Book Value Per Common Share (3)
Book value per common share (GAAP)		$	65.03			$	66.64			$	68.30			$	69.27			$	68.55
Effect to adjust for intangible assets			(27.06)				(27.17)				(27.25)				(24.65)				(24.57)
Tangible book value per common share (non-GAAP)		$	37.97			$	39.47			$	41.05			$	44.62			$	43.98
Tangible Equity-to-Tangible Assets (3)
Equity-to-assets (GAAP)			10.89	%			10.91	%			11.20	%			11.45	%			11.72	%
Effect to adjust for intangible assets			(4.23)	%			(4.15)	%			(4.15)	%			(3.76)	%			(3.87)	%
Tangible equity-to-tangible assets (non-GAAP)			6.66	%			6.76	%			7.05	%			7.69	%			7.85	%

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 $9.6 million, $12.8 million, $6.7 million, $7.7 million, and $5.2 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, merger and branch consolidation related expense, initial PCL on nonPCD loans and unfunded commitments from acquisitions and extinguishment of debt cost.  Management believes that non-GAAP adjusted measures provide additional useful information that allows readers to evaluate the ongoing performance of the company.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.  Adjusted earnings and the related adjusted return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger and branch consolidation related expense of $13.7 million, $5.4 million, $10.3 million, $6.6 million, and $17.6 million for the quarters ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively; and (b) net securities gains of $30,000, $2,000, and $64,000 for the quarters ended September 30, 2022, December 31, 2021 and September 30, 2021, respectively; and (c) initial PCL on nonPCD loans and unfunded commitments acquired from ACBI of $17.1 million for the quarter ended March 31, 2022.
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 merger and branch consolidation related expense and amortization of intangible assets, divided by net interest income and noninterest income excluding securities gains (losses). The pre-tax amortization expenses of intangible assets were $7.8 million, $8.8 million, $8.5 million, $8.5 million, and $8.5 million, for the quarters ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, 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, 2022 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed.
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 the number and pace of higher interest rates, deterioration in the credit markets, inflation, greater than expected noninterest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential continued negative economic developments resulting from the Covid19 pandemic, or from federal spending cuts and/or one or more federal budget-related impasses or actions; (2) interest rate risk primarily resulting from the interest rate environment, the number and pace of rising interest rates, and their impact on the Bank's earnings, including from the correspondent and mortgage divisions, housing demand, the market value of the bank's loan and securities portfolios, and the market value of SouthState's equity; (3) risks related to the merger and integration of SouthState and Atlantic Capital including, among others, (i) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized, (ii) the risk that the integration of Atlantic Capital's operations into SouthState's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate Atlantic Capital's businesses into SouthState's businesses, (iii) the amount of the costs, fees, expenses and charges related to the merger, and (iv) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (4) risks relating to the continued impact of the Covid19 pandemic on the Company, including possible impact to the Company and its employees from contracting Covid19, and to efficiencies and the control environment due to the changing work environment and to our results of operations due to further interventions to mitigate the impact of the pandemic; (5) the impact of increasing digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on the Bank's results of operations, customer base, expenses, suppliers and operations; (6) controls and procedures risk, including the potential failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures; (7) potential deterioration in real estate values; (8) the impact of competition with other financial institutions, including deposit and loan pricing pressures (including those resulting from the CARES Act) and the resulting impact, including as a result of compression to net interest margin; (9) risks relating to the ability to retain our culture and attract and retain qualified people; (10) credit risks associated with an obligor's failure to meet the terms of any contract with the Bank or otherwise fail to perform as agreed under the terms of any loan-related document; (11) risks related to the ability of the Company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (12) liquidity risk affecting the Bank's ability to meet its obligations when they come due; (13) risks associated with an anticipated increase in SouthState's investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities SouthState desires to acquire are not available on terms acceptable to SouthState; (14) price risk focusing on changes in market factors that may affect the value of traded instruments in "mark-to-market" portfolios; (15) transaction risk arising from problems with service or product delivery; (16) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (17) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and including the impact of the CARES Act, the Consumer Financial Protection Bureau regulations, and the possibility of changes in accounting standards, policies, principles and practices, including changes in accounting principles relating to loan loss recognition (CECL); (18) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (19) reputation risk that adversely affects earnings or capital arising from negative public opinion; (20) cybersecurity risk related to the dependence of SouthState on internal computer systems and the technology of outside service providers, as well as the potential impacts of internal or external security breaches, which may subject the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (21) reputational and operational risks associated with environment, social and governance (ESG) matters, including the impact of recently issued proposed regulatory guidance and regulation relating to climate change; (22) greater than expected noninterest expenses; (23) excessive loan losses; (24) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the Atlantic Capital integration, and potential difficulties in maintaining relationships with key personnel; (25) reputational risk and possible higher than estimated reduced revenue from announced changes in the Bank's consumer overdraft programs; (26) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (27) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations as well as the discretion of the board of directors of SouthState, SouthState's performance and other factors; (28) ownership dilution risk associated with potential acquisitions in which SouthState's stock may be issued as consideration for an acquired company; (29) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash consideration; (30) major catastrophes such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including infectious disease outbreaks, such as the ongoing Covid19 pandemic, and the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on SouthState and its customers and other constituencies; (31) terrorist activities risk that results in loss of consumer confidence and economic disruptions; and (32) other factors that may affect future results of SouthState, as disclosed in SouthState's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by SouthState with the U.S. Securities and Exchange Commission ("SEC") and available on the SEC's website at http://www.sec.gov, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward-looking statements.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. SouthState does not undertake any obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

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SOURCE SouthState Corporation

FAQ

What are the key financial highlights for SouthState Corporation in Q3 2022?

SouthState Corporation reported a net income of $133 million and EPS of $1.75 for Q3 2022, with adjusted EPS reaching $1.89.

When is the dividend payment date for SouthState Corporation?

The quarterly cash dividend of $0.50 per share is payable on November 18, 2022, to shareholders of record as of November 11, 2022.

How did SouthState Corporation's loan and deposit levels change in Q3 2022?

Loans increased by $901 million, whereas average deposits declined by $384 million, with period-end deposits down $1.2 billion.

What was the net interest margin reported by SouthState Corporation in Q3 2022?

The net interest margin for Q3 2022 was 3.53%, an improvement from the previous quarter.

What was the pre-provision net revenue for SouthState Corporation in Q3 2022?

The pre-provision net revenue (PPNR) reported for Q3 2022 was $208 million.