SouthState Corporation Reports Third Quarter 2024 Results, Declares Quarterly Cash Dividend
SouthState (NYSE: SSB) reported Q3 2024 results with net income of $143.2 million and diluted EPS of $1.86. The company saw steady growth in key metrics with loans increasing by $314 million (4% annualized) and deposits growing by $540 million (6% annualized). Net interest income was $351 million with a net interest margin of 3.39%. The company maintained strong capital position with total risk-based capital ratio of 14.9%. The Board declared a quarterly cash dividend of $0.54 per share, payable November 15, 2024. Shareholders approved the acquisition of Independent Bank Group, though it remains subject to regulatory approval.
SouthState (NYSE: SSB) ha riportato i risultati del Q3 2024 con un utile netto di 143,2 milioni di dollari e un EPS diluito di 1,86 dollari. L'azienda ha registrato una crescita costante nei principali indicatori, con un aumento dei prestiti di 314 milioni di dollari (4% annuo) e una crescita dei depositi di 540 milioni di dollari (6% annuo). Il reddito da interessi netto è stato di 351 milioni di dollari, con un margine di interesse netto del 3,39%. L'azienda ha mantenuto una solida posizione patrimoniale con un rapporto di capitale a rischio totale del 14,9%. Il Consiglio ha dichiarato un dividendo in contante trimestrale di 0,54 dollari per azione, pagabile il 15 novembre 2024. Gli azionisti hanno approvato l'acquisizione del Independent Bank Group, che rimane comunque soggetta all'approvazione normativa.
SouthState (NYSE: SSB) reportó resultados del Q3 2024 con ingresos netos de 143.2 millones de dólares y EPS diluido de 1.86 dólares. La compañía observó un crecimiento constante en métricas clave, con un aumento en los préstamos de 314 millones de dólares (4% anualizado) y depósitos creciendo en 540 millones de dólares (6% anualizado). Los ingresos por interés neto fueron de 351 millones de dólares, con un margen de interés neto del 3.39%. La compañía mantuvo una sólida posición de capital con un ratio de capital total basado en riesgos del 14.9%. La Junta declaró un dividendo en efectivo trimestral de 0.54 dólares por acción, pagadero el 15 de noviembre de 2024. Los accionistas aprobaron la adquisición de Independent Bank Group, aunque sigue sujeta a la aprobación regulatoria.
SouthState (NYSE: SSB)는 2024년 Q3 실적을 발표하며 순이익 1억 4320만 달러와 갖춰진 주당 순이익 1.86 달러를 기록했습니다. 회사는 핵심 지표에서 꾸준한 성장을 보였으며, 대출은 3억 1400만 달러 증가(연 환산 4%)했으며, 예금은 5억 4000만 달러 증가(연 환산 6%)했습니다. 순이자 수익은 3억 5100만 달러였고 순이자 마진은 3.39%였습니다. 회사는 총 위험 기준 자본 비율이 14.9%로 강력한 자본 위치를 유지했습니다. 이사회는 1주당 0.54달러의 분기 현금 배당금을 선언했으며, 이는 2024년 11월 15일 지급될 예정입니다. 주주들은 Independent Bank Group의 인수를 승인했지만, 이는 여전히 규제 승인을 받아야 합니다.
SouthState (NYSE: SSB) a publié ses résultats pour le T3 2024 avec un bénéfice net de 143,2 millions de dollars et un BPA dilué de 1,86 dollar. L'entreprise a connu une croissance stable dans les indicateurs clés, avec des prêts augmentant de 314 millions de dollars (4% annualisé) et des dépôts en hausse de 540 millions de dollars (6% annualisé). Les revenus d'intérêts nets se sont élevés à 351 millions de dollars, avec une marge d'intérêt nette de 3,39%. L'entreprise a maintenu une solide position en capital avec un ratio de capital total basé sur les risques de 14,9%. Le Conseil a déclaré un dividende en espèces trimestriel de 0,54 dollar par action, payable le 15 novembre 2024. Les actionnaires ont approuvé l'acquisition d'Independent Bank Group, bien qu'elle soit toujours soumise à l'approbation réglementaire.
SouthState (NYSE: SSB) hat die Ergebnisse des Q3 2024 mit netto Einkommen von 143,2 Millionen Dollar und verwässertem Gewinn pro Aktie von 1,86 Dollar veröffentlicht. Das Unternehmen verzeichnete ein stabiles Wachstum in den wichtigsten Kennzahlen, wobei die Darlehen um 314 Millionen Dollar (4% annualisiert) und die Einlagen um 540 Millionen Dollar (6% annualisiert) zunahmen. Die Nettozinseinnahmen betrugen 351 Millionen Dollar bei einer Nettomarge von 3,39%. Das Unternehmen weist eine starke Kapitalposition mit einem Gesamtrisiko-Kapitalquotienten von 14,9% auf. Der Vorstand hat eine vierteljährliche Bardividende von 0,54 Dollar pro Aktie erklärt, die am 15. November 2024 zahlbar ist. Die Aktionäre genehmigten die Übernahme der Independent Bank Group, die jedoch weiterhin der regulatorischen Genehmigung bedarf.
- Net income increased to $143.2 million with diluted EPS of $1.86
- Loans grew by $314 million (4% annualized)
- Deposits increased by $540 million (6% annualized)
- Strong capital position with 14.9% total risk-based capital ratio
- Tangible book value per share increased 7% during the quarter
- Net interest margin declined to 3.39% from 3.49% year-over-year
- Total deposit cost increased to 1.90%, up 0.10% from prior quarter
Insights
- Loan growth of
- Deposit growth of
- Stable net interest margin of
- Strong credit quality with net charge-offs of just
- Tangible book value increased
"Despite the challenges of hurricane season, SouthState produced steady growth in loans, deposits, revenue, and earnings per share. Furthermore, with the compounding effect of interest rate changes, our tangible book value per share increased
Highlights of the third quarter of 2024 include:
Returns
- Reported Diluted Earnings per Share ("EPS") of
; Adjusted Diluted EPS (Non-GAAP) of$1.86 $1.90 - Net Income of
; Adjusted Net Income (Non-GAAP) of$143.2 million $145.7 million - Return on Average Common Equity of
9.9% ; Return on Average Tangible Common Equity (Non-GAAP) of15.6% and Adjusted Return on Average Tangible Common Equity (Non-GAAP) of15.9% * - Return on Average Assets ("ROAA") of
1.25% and Adjusted ROAA (Non-GAAP) of1.27% * - Book Value per Share of
; Tangible Book Value ("TBV") per Share (Non-GAAP) of$77.42 $51.26
Performance
- Net Interest Income of
; Core Net Interest Income (excluding loan accretion) (Non-GAAP) of$351 million $349 million - Net Interest Margin ("NIM"), non-tax equivalent of
3.39% and tax equivalent (Non-GAAP) of3.40% - Net charge-offs of
, or$6.1 million 0.07% annualized;( release of Provision for Credit Losses ("PCL"), including a release for unfunded commitments of$7.0) million ; total allowance for credit losses ("ACL") plus reserve for unfunded commitments of$8.7 million 1.52% - Noninterest Income of
; Noninterest Income represented$75 million 0.65% of average assets for the third quarter of 2024* - Efficiency Ratio of
57% and Adjusted Efficiency Ratio (Non-GAAP) of56%
∗ Annualized percentages |
Balance Sheet
- Loans increased
, or$314 million 4% annualized, led by increases in consumer real estate and commercial and industrial; ending loan to deposit ratio of89% - Deposits increased
, or$540 million 6% annualized - Total loan yield of
5.86% , up0.04% from prior quarter - Total deposit cost of
1.90% , up0.10% from prior quarter - Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of
8.9% ,14.9% ,10.0% , and12.5% , respectively†
† Preliminary |
Mergers & Acquisitions
- Received approval by each of SouthState's and Independent Bank Group, Inc.'s respective shareholders; still subject to other customary conditions, including regulatory approval
Subsequent Events
- The Board of Directors of the Company declared a quarterly cash dividend on its common stock of
per share, payable on November 15, 2024 to shareholders of record as of November 8, 2024$0.54
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 | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||
Interest Income | ||||||||||||||||||||||
Loans, including fees (1) | $ | 494,082 | $ | 478,360 | $ | 463,688 | $ | 459,880 | $ | 443,805 | $ | 1,436,130 | $ | 1,256,525 | ||||||||
Investment securities, trading securities, federal funds sold and securities | ||||||||||||||||||||||
purchased under agreements to resell | 50,096 | 52,764 | 53,567 | 55,555 | 56,704 | 156,427 | 172,446 | |||||||||||||||
Total interest income | 544,178 | 531,124 | 517,255 | 515,435 | 500,509 | 1,592,557 | 1,428,971 | |||||||||||||||
Interest Expense | ||||||||||||||||||||||
Deposits | 177,919 | 165,481 | 160,162 | 149,584 | 133,944 | 503,562 | 290,673 | |||||||||||||||
Federal funds purchased, securities sold under agreements | ||||||||||||||||||||||
to repurchase, and other borrowings | 14,779 | 15,384 | 13,157 | 11,620 | 11,194 | 43,320 | 39,921 | |||||||||||||||
Total interest expense | 192,698 | 180,865 | 173,319 | 161,204 | 145,138 | 546,882 | 330,594 | |||||||||||||||
Net Interest Income | 351,480 | 350,259 | 343,936 | 354,231 | 355,371 | 1,045,675 | 1,098,377 | |||||||||||||||
(Recovery) provision for credit losses | (6,971) | 3,889 | 12,686 | 9,893 | 32,709 | 9,604 | 104,189 | |||||||||||||||
Net Interest Income after (Recovery) Provision for Credit Losses | 358,451 | 346,370 | 331,250 | 344,338 | 322,662 | 1,036,071 | 994,188 | |||||||||||||||
Noninterest Income | 74,934 | 75,225 | 71,558 | 65,489 | 72,848 | 221,717 | 221,417 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||||
Operating expense | 243,543 | 242,343 | 240,923 | 245,774 | 238,042 | 726,809 | 709,953 | |||||||||||||||
Merger, branch consolidation, severance related and other expense (8) | 3,304 | 5,785 | 4,513 | 1,778 | 164 | 13,602 | 11,384 | |||||||||||||||
FDIC special assessment | — | 619 | 3,854 | 25,691 | — | 4,473 | — | |||||||||||||||
Total noninterest expense | 246,847 | 248,747 | 249,290 | 273,243 | 238,206 | 744,884 | 721,337 | |||||||||||||||
Income before Income Tax Provision | 186,538 | 172,848 | 153,518 | 136,584 | 157,304 | 512,904 | 494,268 | |||||||||||||||
Income tax provision | 43,359 | 40,478 | 38,462 | 29,793 | 33,160 | 122,299 | 106,751 | |||||||||||||||
Net Income | $ | 143,179 | $ | 132,370 | $ | 115,056 | $ | 106,791 | $ | 124,144 | $ | 390,605 | $ | 387,517 | ||||||||
Adjusted Net Income (non-GAAP) (2) | ||||||||||||||||||||||
Net Income (GAAP) | $ | 143,179 | $ | 132,370 | $ | 115,056 | $ | 106,791 | $ | 124,144 | $ | 390,605 | $ | 387,517 | ||||||||
Securities losses (gains), net of tax | — | — | — | 2 | — | — | (35) | |||||||||||||||
Merger, branch consolidation, severance related and other expense, net of tax (8) | 2,536 | 4,430 | 3,382 | 1,391 | 130 | 10,348 | 8,900 | |||||||||||||||
FDIC special assessment, net of tax | — | 474 | 2,888 | 20,087 | — | 3,362 | — | |||||||||||||||
Adjusted Net Income (non-GAAP) | $ | 145,715 | $ | 137,274 | $ | 121,326 | $ | 128,271 | $ | 124,274 | $ | 404,315 | $ | 396,382 | ||||||||
Basic earnings per common share | $ | 1.88 | $ | 1.74 | $ | 1.51 | $ | 1.40 | $ | 1.63 | $ | 5.12 | $ | 5.10 | ||||||||
Diluted earnings per common share | $ | 1.86 | $ | 1.73 | $ | 1.50 | $ | 1.39 | $ | 1.62 | $ | 5.09 | $ | 5.07 | ||||||||
Adjusted net income per common share - Basic (non-GAAP) (2) | $ | 1.91 | $ | 1.80 | $ | 1.59 | $ | 1.69 | $ | 1.63 | $ | 5.30 | $ | 5.21 | ||||||||
Adjusted net income per common share - Diluted (non-GAAP) (2) | $ | 1.90 | $ | 1.79 | $ | 1.58 | $ | 1.67 | $ | 1.62 | $ | 5.27 | $ | 5.19 | ||||||||
Dividends per common share | $ | 0.54 | $ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 1.58 | $ | 1.52 | ||||||||
Basic weighted-average common shares outstanding | 76,299,069 | 76,251,401 | 76,301,411 | 76,100,187 | 76,139,170 | 76,284,016 | 76,034,062 | |||||||||||||||
Diluted weighted-average common shares outstanding | 76,805,436 | 76,607,281 | 76,660,081 | 76,634,100 | 76,571,430 | 76,690,900 | 76,445,649 | |||||||||||||||
Effective tax rate | 23.24 % | 23.42 % | 25.05 % | 21.81 % | 21.08 % | 23.84 % | 21.60 % |
Performance and Capital Ratios
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||
PERFORMANCE RATIOS | |||||||||||||||||||||
Return on average assets (annualized) | 1.25 | % | 1.17 | % | 1.03 | % | 0.94 | % | 1.10 | % | 1.15 | % | 1.16 | % | |||||||
Adjusted return on average assets (annualized) (non-GAAP) (2) | 1.27 | % | 1.22 | % | 1.08 | % | 1.13 | % | 1.10 | % | 1.19 | % | 1.19 | % | |||||||
Return on average common equity (annualized) | 9.91 | % | 9.58 | % | 8.36 | % | 7.99 | % | 9.24 | % | 9.29 | % | 9.83 | % | |||||||
Adjusted return on average common equity (annualized) (non-GAAP) (2) | 10.08 | % | 9.94 | % | 8.81 | % | 9.60 | % | 9.25 | % | 9.62 | % | 10.06 | % | |||||||
Return on average tangible common equity (annualized) (non-GAAP) (3) | 15.63 | % | 15.49 | % | 13.63 | % | 13.53 | % | 15.52 | % | 14.94 | % | 16.67 | % | |||||||
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3) | 15.89 | % | 16.05 | % | 14.35 | % | 16.12 | % | 15.54 | % | 15.44 | % | 17.03 | % | |||||||
Efficiency ratio (tax equivalent) | 56.58 | % | 57.03 | % | 58.48 | % | 63.43 | % | 54.00 | % | 57.35 | % | 52.98 | % | |||||||
Adjusted efficiency ratio (non-GAAP) (4) | 55.80 | % | 55.52 | % | 56.47 | % | 56.89 | % | 53.96 | % | 55.93 | % | 52.11 | % | |||||||
Dividend payout ratio (5) | 28.76 | % | 29.93 | % | 34.42 | % | 37.01 | % | 31.84 | % | 30.82 | % | 29.78 | % | |||||||
Book value per common share | $ | 77.42 | $ | 74.16 | $ | 72.82 | $ | 72.78 | $ | 68.81 | |||||||||||
Tangible book value per common share (non-GAAP) (3) | $ | 51.26 | $ | 47.90 | $ | 46.48 | $ | 46.32 | $ | 42.26 | |||||||||||
CAPITAL RATIOS | |||||||||||||||||||||
Equity-to-assets | 12.8 | % | 12.4 | % | 12.3 | % | 12.3 | % | 11.6 | % | |||||||||||
Tangible equity-to-tangible assets (non-GAAP) (3) | 8.9 | % | 8.4 | % | 8.2 | % | 8.2 | % | 7.5 | % | |||||||||||
Tier 1 leverage (6) | 10.0 | % | 9.7 | % | 9.6 | % | 9.4 | % | 9.3 | % | |||||||||||
Tier 1 common equity (6) | 12.5 | % | 12.1 | % | 11.9 | % | 11.8 | % | 11.5 | % | |||||||||||
Tier 1 risk-based capital (6) | 12.5 | % | 12.1 | % | 11.9 | % | 11.8 | % | 11.5 | % | |||||||||||
Total risk-based capital (6) | 14.9 | % | 14.4 | % | 14.4 | % | 14.1 | % | 13.8 | % |
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 | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 563,887 | $ | 507,425 | $ | 478,271 | $ | 510,922 | $ | 514,917 | ||||||
Federal funds sold and interest-earning deposits with banks | 648,792 | 609,741 | 731,186 | 487,955 | 814,220 | |||||||||||
Cash and cash equivalents | 1,212,679 | 1,117,166 | 1,209,457 | 998,877 | 1,329,137 | |||||||||||
Trading securities, at fair value | 87,103 | 92,161 | 66,188 | 31,321 | 114,154 | |||||||||||
Investment securities: | ||||||||||||||||
Securities held to maturity | 2,301,307 | 2,348,528 | 2,446,589 | 2,487,440 | 2,533,713 | |||||||||||
Securities available for sale, at fair value | 4,564,363 | 4,498,264 | 4,598,400 | 4,784,388 | 4,623,618 | |||||||||||
Other investments | 211,458 | 201,516 | 187,285 | 192,043 | 187,152 | |||||||||||
Total investment securities | 7,077,128 | 7,048,308 | 7,232,274 | 7,463,871 | 7,344,483 | |||||||||||
Loans held for sale | 287,043 | 100,007 | 56,553 | 50,888 | 27,443 | |||||||||||
Loans: | ||||||||||||||||
Purchased credit deteriorated | 913,342 | 957,255 | 1,031,283 | 1,108,813 | 1,171,543 | |||||||||||
Purchased non-credit deteriorated | 3,959,028 | 4,253,323 | 4,534,583 | 4,796,913 | 5,064,254 | |||||||||||
Non-acquired | 28,675,822 | 28,023,986 | 27,101,444 | 26,482,763 | 25,780,875 | |||||||||||
Less allowance for credit losses | (467,981) | (472,298) | (469,654) | (456,573) | (447,956) | |||||||||||
Loans, net | 33,080,211 | 32,762,266 | 32,197,656 | 31,931,916 | 31,568,716 | |||||||||||
Premises and equipment, net | 507,452 | 517,382 | 512,635 | 519,197 | 516,583 | |||||||||||
Bank owned life insurance | 1,007,275 | 1,001,998 | 997,562 | 991,454 | 984,881 | |||||||||||
Mortgage servicing rights | 83,512 | 88,904 | 87,970 | 85,164 | 89,476 | |||||||||||
Core deposit and other intangibles | 71,835 | 77,389 | 83,193 | 88,776 | 95,094 | |||||||||||
Goodwill | 1,923,106 | 1,923,106 | 1,923,106 | 1,923,106 | 1,923,106 | |||||||||||
Other assets | 745,303 | 765,283 | 778,244 | 817,454 | 996,055 | |||||||||||
Total assets | $ | 46,082,647 | $ | 45,493,970 | $ | 45,144,838 | $ | 44,902,024 | $ | 44,989,128 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing | $ | 10,376,531 | $ | 10,374,464 | $ | 10,546,410 | $ | 10,649,274 | $ | 11,158,431 | ||||||
Interest-bearing | 27,261,664 | 26,723,938 | 26,632,024 | 26,399,635 | 25,776,767 | |||||||||||
Total deposits | 37,638,195 | 37,098,402 | 37,178,434 | 37,048,909 | 36,935,198 | |||||||||||
Federal funds purchased and securities | ||||||||||||||||
sold under agreements to repurchase | 538,322 | 542,403 | 554,691 | 489,185 | 513,304 | |||||||||||
Other borrowings | 691,626 | 691,719 | 391,812 | 491,904 | 391,997 | |||||||||||
Reserve for unfunded commitments | 41,515 | 50,248 | 53,229 | 56,303 | 62,347 | |||||||||||
Other liabilities | 1,268,409 | 1,460,795 | 1,419,663 | 1,282,625 | 1,855,295 | |||||||||||
Total liabilities | 40,178,067 | 39,843,567 | 39,597,829 | 39,368,926 | 39,758,141 | |||||||||||
Shareholders' equity: | ||||||||||||||||
Common stock - | 190,674 | 190,489 | 190,443 | 190,055 | 190,043 | |||||||||||
Surplus | 4,249,672 | 4,238,192 | 4,230,345 | 4,240,413 | 4,238,753 | |||||||||||
Retained earnings | 1,943,874 | 1,841,933 | 1,749,215 | 1,685,166 | 1,618,080 | |||||||||||
Accumulated other comprehensive loss | (479,640) | (620,211) | (622,994) | (582,536) | (815,889) | |||||||||||
Total shareholders' equity | 5,904,580 | 5,650,403 | 5,547,009 | 5,533,098 | 5,230,987 | |||||||||||
Total liabilities and shareholders' equity | $ | 46,082,647 | $ | 45,493,970 | $ | 45,144,838 | $ | 44,902,024 | $ | 44,989,128 | ||||||
Common shares issued and outstanding | 76,269,577 | 76,195,723 | 76,177,163 | 76,022,039 | 76,017,366 |
Net Interest Income and Margin
Three Months Ended | |||||||||||||||||||||||||
Sep. 30, 2024 | Jun. 30, 2024 | Sep. 30, 2023 | |||||||||||||||||||||||
(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 | $ | 559,942 | $ | 6,462 | 4.59 % | $ | 732,252 | $ | 8,248 | 4.53 % | $ | 822,805 | $ | 10,831 | 5.22 % | ||||||||||
Investment securities | 7,163,934 | 43,634 | 2.42 % | 7,226,582 | 44,516 | 2.48 % | 7,714,079 | 45,873 | 2.36 % | ||||||||||||||||
Loans held for sale | 112,429 | 2,694 | 9.53 % | 63,307 | 1,018 | 6.47 % | 34,736 | 517 | 5.90 % | ||||||||||||||||
Total loans held for investment | 33,387,675 | 491,388 | 5.86 % | 32,989,521 | 477,342 | 5.82 % | 31,804,760 | 443,288 | 5.53 % | ||||||||||||||||
Total interest-earning assets | 41,223,980 | 544,178 | 5.25 % | 41,011,662 | 531,124 | 5.21 % | 40,376,380 | 500,509 | 4.92 % | ||||||||||||||||
Noninterest-earning assets | 4,373,250 | 4,416,072 | 4,464,939 | ||||||||||||||||||||||
Total Assets | $ | 45,597,230 | $ | 45,427,734 | $ | 44,841,319 | |||||||||||||||||||
Interest-Bearing Liabilities ("IBL"): | |||||||||||||||||||||||||
Transaction and money market accounts | $ | 19,936,966 | $ | 129,613 | 2.59 % | $ | 19,653,436 | $ | 120,722 | 2.47 % | $ | 18,291,300 | $ | 93,465 | 2.03 % | ||||||||||
Savings deposits | 2,453,886 | 1,893 | 0.31 % | 2,504,809 | 1,830 | 0.29 % | 2,845,250 | 1,919 | 0.27 % | ||||||||||||||||
Certificates and other time deposits | 4,489,441 | 46,413 | 4.11 % | 4,286,950 | 42,929 | 4.03 % | 4,413,855 | 38,560 | 3.47 % | ||||||||||||||||
Federal funds purchased | 304,582 | 4,178 | 5.46 % | 270,028 | 3,621 | 5.39 % | 236,732 | 3,128 | 5.24 % | ||||||||||||||||
Repurchase agreements | 258,166 | 1,519 | 2.34 % | 270,815 | 1,362 | 2.02 % | 303,339 | 1,163 | 1.52 % | ||||||||||||||||
Other borrowings | 611,247 | 9,082 | 5.91 % | 715,401 | 10,401 | 5.85 % | 456,187 | 6,903 | 6.00 % | ||||||||||||||||
Total interest-bearing liabilities | 28,054,288 | 192,698 | 2.73 % | 27,701,439 | 180,865 | 2.63 % | 26,546,663 | 145,138 | 2.17 % | ||||||||||||||||
Noninterest-bearing deposits | 10,412,512 | 10,566,529 | 11,362,233 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 1,382,260 | 1,605,296 | 1,603,511 | ||||||||||||||||||||||
Shareholders' equity | 5,748,170 | 5,554,470 | 5,328,912 | ||||||||||||||||||||||
Total Non-IBL and shareholders' equity | 17,542,942 | 17,726,295 | 18,294,656 | ||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 45,597,230 | $ | 45,427,734 | $ | 44,841,319 | |||||||||||||||||||
Net Interest Income and Margin (Non-Tax Equivalent) | $ | 351,480 | 3.39 % | $ | 350,259 | 3.43 % | $ | 355,371 | 3.49 % | ||||||||||||||||
Net Interest Margin (Tax Equivalent) (non-GAAP) | 3.40 % | 3.44 % | 3.50 % | ||||||||||||||||||||||
Total Deposit Cost (without Debt and Other Borrowings) | 1.90 % | 1.80 % | 1.44 % | ||||||||||||||||||||||
Overall Cost of Funds (including Demand Deposits) | 1.99 % | 1.90 % | 1.52 % | ||||||||||||||||||||||
Total Accretion on Acquired Loans (1) | $ | 2,858 | $ | 4,386 | $ | 4,053 | |||||||||||||||||||
Tax Equivalent ("TE") Adjustment | $ | 486 | $ | 631 | $ | 646 |
• The remaining loan discount on acquired loans to be accreted into loan interest income totals |
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) | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||
Noninterest Income: | ||||||||||||||||||||||
Fees on deposit accounts | $ | 33,986 | $ | 33,842 | $ | 33,145 | $ | 33,225 | $ | 32,830 | $ | 100,973 | $ | 95,790 | ||||||||
Mortgage banking income | 3,189 | 5,912 | 6,169 | 2,191 | 2,478 | 15,270 | 11,164 | |||||||||||||||
Trust and investment services income | 11,578 | 11,091 | 10,391 | 10,131 | 9,556 | 33,060 | 29,316 | |||||||||||||||
Securities (losses) gains, net | — | — | — | (2) | — | — | 45 | |||||||||||||||
Correspondent banking and capital markets income | 17,381 | 16,267 | 14,591 | 16,081 | 24,808 | 48,239 | 74,498 | |||||||||||||||
Expense on centrally-cleared variation margin | (7,488) | (11,407) | (10,280) | (12,677) | (11,892) | (29,175) | (28,801) | |||||||||||||||
Total correspondent banking and capital markets income | 9,893 | 4,860 | 4,311 | 3,404 | 12,916 | 19,064 | 45,697 | |||||||||||||||
Bank owned life insurance income | 8,276 | 7,372 | 6,892 | 6,567 | 7,039 | 22,540 | 20,123 | |||||||||||||||
Other | 8,012 | 12,148 | 10,650 | 9,973 | 8,029 | 30,810 | 19,282 | |||||||||||||||
Total Noninterest Income | $ | 74,934 | $ | 75,225 | $ | 71,558 | $ | 65,489 | $ | 72,848 | $ | 221,717 | $ | 221,417 | ||||||||
Noninterest Expense: | ||||||||||||||||||||||
Salaries and employee benefits | $ | 150,865 | $ | 151,435 | $ | 150,453 | $ | 145,850 | $ | 146,146 | $ | 452,753 | $ | 437,548 | ||||||||
Occupancy expense | 22,242 | 22,453 | 22,577 | 22,715 | 22,251 | 67,272 | 65,980 | |||||||||||||||
Information services expense | 23,280 | 23,144 | 22,353 | 22,000 | 21,428 | 68,777 | 62,472 | |||||||||||||||
OREO and loan related expense | 1,358 | 1,307 | 606 | 948 | 613 | 3,271 | 768 | |||||||||||||||
Business development and staff related | 5,797 | 6,220 | 5,799 | 7,492 | 5,995 | 17,816 | 18,624 | |||||||||||||||
Amortization of intangibles | 5,327 | 5,744 | 5,998 | 6,615 | 6,616 | 17,069 | 20,943 | |||||||||||||||
Professional fees | 4,017 | 3,906 | 3,115 | 7,025 | 3,456 | 11,038 | 11,522 | |||||||||||||||
Supplies and printing expense | 2,762 | 2,526 | 2,540 | 2,761 | 2,623 | 7,828 | 7,817 | |||||||||||||||
FDIC assessment and other regulatory charges | 7,482 | 7,771 | 8,534 | 8,325 | 8,632 | 23,787 | 24,745 | |||||||||||||||
Advertising and marketing | 2,296 | 2,594 | 1,984 | 2,826 | 3,009 | 6,874 | 6,648 | |||||||||||||||
Other operating expenses | 18,117 | 15,243 | 16,964 | 19,217 | 17,273 | 50,324 | 52,886 | |||||||||||||||
Merger, branch consolidation, severance related and other expense (8) | 3,304 | 5,785 | 4,513 | 1,778 | 164 | 13,602 | 11,384 | |||||||||||||||
FDIC special assessment | — | 619 | 3,854 | 25,691 | — | 4,473 | — | |||||||||||||||
Total Noninterest Expense | $ | 246,847 | $ | 248,747 | $ | 249,290 | $ | 273,243 | $ | 238,206 | $ | 744,884 | $ | 721,337 |
Loans and Deposits
The following table presents a summary of the loan portfolio by type:
Ending Balance | ||||||||||||||||
(Dollars in thousands) | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | |||||||||||
LOAN PORTFOLIO (7) | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Construction and land development * † | $ | 2,458,151 | $ | 2,592,307 | $ | 2,437,343 | $ | 2,923,514 | $ | 2,776,241 | ||||||
Investor commercial real estate* | 9,856,709 | 9,731,773 | 9,752,529 | 9,227,968 | 9,372,683 | |||||||||||
Commercial owner occupied real estate | 5,544,716 | 5,522,978 | 5,511,855 | 5,497,671 | 5,539,097 | |||||||||||
Commercial and industrial | 5,931,187 | 5,769,838 | 5,544,131 | 5,504,539 | 5,458,229 | |||||||||||
Consumer real estate * | 8,649,714 | 8,440,724 | 8,223,066 | 7,993,450 | 7,608,145 | |||||||||||
Consumer/other | 1,107,715 | 1,176,944 | 1,198,386 | 1,241,347 | 1,262,277 | |||||||||||
Total Loans | $ | 33,548,192 | $ | 33,234,564 | $ | 32,667,310 | $ | 32,388,489 | $ | 32,016,672 |
* | 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 |
Ending Balance | ||||||||||||||||
(Dollars in thousands) | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | |||||||||||
DEPOSITS | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Noninterest-bearing checking | $ | 10,376,531 | $ | 10,374,464 | $ | 10,546,410 | $ | 10,649,274 | $ | 11,158,431 | ||||||
Interest-bearing checking | 7,550,392 | 7,547,406 | 7,898,835 | 7,978,799 | 7,806,243 | |||||||||||
Savings | 2,442,584 | 2,475,130 | 2,557,203 | 2,632,212 | 2,760,166 | |||||||||||
Money market | 12,614,046 | 12,122,336 | 11,895,385 | 11,538,671 | 10,756,431 | |||||||||||
Time deposits | 4,654,642 | 4,579,066 | 4,280,601 | 4,249,953 | 4,453,927 | |||||||||||
Total Deposits | $ | 37,638,195 | $ | 37,098,402 | $ | 37,178,434 | $ | 37,048,909 | $ | 36,935,198 | ||||||
Core Deposits (excludes Time Deposits) | $ | 32,983,553 | $ | 32,519,336 | $ | 32,897,833 | $ | 32,798,956 | $ | 32,481,271 |
Asset Quality
Ending Balance | ||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||
(Dollars in thousands) | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
NONPERFORMING ASSETS: | ||||||||||||||||
Non-acquired | ||||||||||||||||
Non-acquired nonaccrual loans and restructured loans on nonaccrual | $ | 111,240 | $ | 110,774 | $ | 106,189 | $ | 110,467 | $ | 105,856 | ||||||
Accruing loans past due 90 days or more | 6,890 | 5,843 | 2,497 | 11,305 | 783 | |||||||||||
Non-acquired OREO and other nonperforming assets | 1,217 | 2,876 | 1,589 | 711 | 449 | |||||||||||
Total non-acquired nonperforming assets | 119,347 | 119,493 | 110,275 | 122,483 | 107,088 | |||||||||||
Acquired | ||||||||||||||||
Acquired nonaccrual loans and restructured loans on nonaccrual | 70,731 | 78,287 | 63,451 | 59,755 | 57,464 | |||||||||||
Accruing loans past due 90 days or more | 389 | 916 | 135 | 1,174 | 1,821 | |||||||||||
Acquired OREO and other nonperforming assets | 493 | 598 | 655 | 712 | 378 | |||||||||||
Total acquired nonperforming assets | 71,613 | 79,801 | 64,241 | 61,641 | 59,663 | |||||||||||
Total nonperforming assets | $ | 190,960 | $ | 199,294 | $ | 174,516 | $ | 184,124 | $ | 166,751 |
Three Months Ended | ||||||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||
ASSET QUALITY RATIOS (7): | ||||||||||||||||
Allowance for credit losses as a percentage of loans | 1.39 % | 1.42 % | 1.44 % | 1.41 % | 1.40 % | |||||||||||
Allowance for credit losses, including reserve for unfunded | 1.52 % | 1.57 % | 1.60 % | 1.58 % | 1.59 % | |||||||||||
Allowance for credit losses as a percentage of nonperforming loans | 247.28 % | 241.19 % | 272.62 % | 249.90 % | 269.98 % | |||||||||||
Net charge-offs as a percentage of average loans (annualized) | 0.07 % | 0.05 % | 0.03 % | 0.09 % | 0.16 % | |||||||||||
Total nonperforming assets as a percentage of total assets | 0.41 % | 0.44 % | 0.39 % | 0.41 % | 0.37 % | |||||||||||
Nonperforming loans as a percentage of period end loans | 0.56 % | 0.59 % | 0.53 % | 0.56 % | 0.52 % |
Current Expected Credit Losses ("CECL")
Below is a table showing the roll forward of the ACL and UFC for the third quarter of 2024:
Allowance for Credit Losses ("ACL and UFC") | |||||||||||||
(Dollars in thousands) | NonPCD ACL | PCD ACL | Total ACL | UFC | |||||||||
Ending balance 6/30/2024 | $ | 447,628 | $ | 24,670 | $ | 472,298 | $ | 50,248 | |||||
Charge offs | (7,529) | — | (7,529) | — | |||||||||
Acquired charge offs | (188) | (886) | (1,074) | — | |||||||||
Recoveries | 1,373 | — | 1,373 | — | |||||||||
Acquired recoveries | 775 | 375 | 1,150 | — | |||||||||
Provision (recovery) for credit losses | 2,563 | (800) | 1,763 | (8,733) | |||||||||
Ending balance 9/30/2024 | $ | 444,622 | $ | 23,359 | $ | 467,981 | $ | 41,515 | |||||
Period end loans | $ | 32,634,850 | $ | 913,342 | $ | 33,548,192 | N/A | ||||||
Allowance for Credit Losses to Loans | 1.36 % | 2.56 % | 1.39 % | N/A | |||||||||
Unfunded commitments (off balance sheet) * | $ | 7,758,645 | |||||||||||
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 24, 2024. Callers wishing to participate may call toll-free by dialing (888) 350-3899 within the US and (646) 960-0343 for all other locations. The numbers for international participants are listed at https://events.q4irportal.com/custom/access/2324/. The conference ID number is 4200408. Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com. An audio replay of the live webcast is expected to be available by the evening of October 24, 2024 on the Investor Relations section of SouthStateBank.com.
SouthState Corporation is a financial services company headquartered in
Non-GAAP Measures
Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures. Although other companies may use calculation methods that differ from those used by SouthState for non-GAAP measures, management believes that these non-GAAP measures provide additional useful information, which allows readers to evaluate the ongoing performance of the Company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.
(Dollars and shares in thousands, except per share data) | Three Months Ended | |||||||||||||||||||
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP) | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | |||||||||||||||
Net income (GAAP) | $ | 143,179 | $ | 132,370 | $ | 115,056 | $ | 106,791 | $ | 124,144 | ||||||||||
(Recovery) provision for credit losses | (6,971) | 3,889 | 12,686 | 9,893 | 32,709 | |||||||||||||||
Tax provision | 43,359 | 40,478 | 38,462 | 29,793 | 33,160 | |||||||||||||||
Merger, branch consolidation, severance related and other expense (8) | 3,304 | 5,785 | 4,513 | 1,778 | 164 | |||||||||||||||
FDIC special assessment | — | 619 | 3,854 | 25,691 | — | |||||||||||||||
Securities losses | — | — | — | 2 | — | |||||||||||||||
Pre-provision net revenue (PPNR) (Non-GAAP) | $ | 182,871 | $ | 183,141 | $ | 174,571 | $ | 173,948 | $ | 190,177 | ||||||||||
(Dollars in thousands) | Three Months Ended | |||||||||||||||||||
CORE NET INTEREST INCOME (NON-GAAP) | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | |||||||||||||||
Net interest income (GAAP) | $ | 351,480 | $ | 350,259 | $ | 343,936 | $ | 354,231 | $ | 355,371 | ||||||||||
Less: | ||||||||||||||||||||
Total accretion on acquired loans | 2,858 | 4,386 | 4,287 | 3,870 | 4,053 | |||||||||||||||
Core net interest income (Non-GAAP) | $ | 348,622 | $ | 345,873 | $ | 339,649 | $ | 350,361 | $ | 351,318 | ||||||||||
NET INTEREST MARGIN ("NIM"), TE (NON-GAAP) | ||||||||||||||||||||
Net interest income (GAAP) | $ | 351,480 | $ | 350,259 | $ | 343,936 | $ | 354,231 | $ | 355,371 | ||||||||||
Total average interest-earning assets | 41,223,980 | 41,011,662 | 40,657,176 | 40,465,377 | 40,376,380 | |||||||||||||||
NIM, non-tax equivalent | 3.39 | % | 3.43 | % | 3.40 | % | 3.47 | % | 3.49 | % | ||||||||||
Tax equivalent adjustment (included in NIM, TE) | 486 | 631 | 528 | 659 | 646 | |||||||||||||||
Net interest income, tax equivalent (Non-GAAP) | $ | 351,966 | $ | 350,890 | $ | 344,464 | $ | 354,890 | $ | 356,017 | ||||||||||
NIM, TE (Non-GAAP) | 3.40 | % | 3.44 | % | 3.41 | % | 3.48 | % | 3.50 | % |
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 | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
Adjusted Net Income (non-GAAP) (2) | ||||||||||||||||||||||||||||
Net income (GAAP) | $ | 143,179 | $ | 132,370 | $ | 115,056 | $ | 106,791 | $ | 124,144 | $ | 390,605 | $ | 387,517 | ||||||||||||||
Securities losses (gains), net of tax | — | — | — | 2 | — | — | (35) | |||||||||||||||||||||
Merger, branch consolidation, severance related and other expense, net of tax (8) | 2,536 | 4,430 | 3,382 | 1,391 | 130 | 10,348 | 8,900 | |||||||||||||||||||||
FDIC special assessment, net of tax | — | 474 | 2,888 | 20,087 | — | 3,362 | — | |||||||||||||||||||||
Adjusted net income (non-GAAP) | $ | 145,715 | $ | 137,274 | $ | 121,326 | $ | 128,271 | $ | 124,274 | $ | 404,315 | $ | 396,382 | ||||||||||||||
Adjusted Net Income per Common Share - Basic (2) | ||||||||||||||||||||||||||||
Earnings per common share - Basic (GAAP) | $ | 1.88 | $ | 1.74 | $ | 1.51 | $ | 1.40 | $ | 1.63 | $ | 5.12 | $ | 5.10 | ||||||||||||||
Effect to adjust for securities losses (gains), net of tax | — | — | — | 0.00 | — | — | (0.00) | |||||||||||||||||||||
Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax (8) | 0.03 | 0.05 | 0.04 | 0.03 | 0.00 | 0.14 | 0.11 | |||||||||||||||||||||
Effect to adjust for FDIC special assessment, net of tax | — | 0.01 | 0.04 | 0.26 | — | 0.04 | — | |||||||||||||||||||||
Adjusted net income per common share - Basic (non-GAAP) | $ | 1.91 | $ | 1.80 | $ | 1.59 | $ | 1.69 | $ | 1.63 | $ | 5.30 | $ | 5.21 | ||||||||||||||
Adjusted Net Income per Common Share - Diluted (2) | ||||||||||||||||||||||||||||
Earnings per common share - Diluted (GAAP) | $ | 1.86 | $ | 1.73 | $ | 1.50 | $ | 1.39 | $ | 1.62 | $ | 5.09 | $ | 5.07 | ||||||||||||||
Effect to adjust for securities losses (gains), net of tax | — | — | — | 0.00 | — | — | (0.00) | |||||||||||||||||||||
Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax (8) | 0.04 | 0.05 | 0.04 | 0.02 | 0.00 | 0.14 | 0.12 | |||||||||||||||||||||
Effect to adjust for FDIC special assessment, net of tax | — | 0.01 | 0.04 | 0.26 | — | 0.04 | — | |||||||||||||||||||||
Adjusted net income per common share - Diluted (non-GAAP) | $ | 1.90 | $ | 1.79 | $ | 1.58 | $ | 1.67 | $ | 1.62 | $ | 5.27 | $ | 5.19 | ||||||||||||||
Adjusted Return on Average Assets (2) | ||||||||||||||||||||||||||||
Return on average assets (GAAP) | 1.25 | % | 1.17 | % | 1.03 | % | 0.94 | % | 1.10 | % | 1.15 | % | 1.16 | % | ||||||||||||||
Effect to adjust for securities losses (gains), net of tax | — | % | — | % | — | % | 0.00 | % | — | % | — | % | (0.00) | % | ||||||||||||||
Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax (8) | 0.02 | % | 0.05 | % | 0.02 | % | 0.01 | % | — | % | 0.03 | % | 0.03 | % | ||||||||||||||
Effect to adjust for FDIC special assessment, net of tax | — | % | 0.00 | % | 0.03 | % | 0.18 | % | — | % | 0.01 | % | — | % | ||||||||||||||
Adjusted return on average assets (non-GAAP) | 1.27 | % | 1.22 | % | 1.08 | % | 1.13 | % | 1.10 | % | 1.19 | % | 1.19 | % | ||||||||||||||
Adjusted Return on Average Common Equity (2) | ||||||||||||||||||||||||||||
Return on average common equity (GAAP) | 9.91 | % | 9.58 | % | 8.36 | % | 7.99 | % | 9.24 | % | 9.29 | % | 9.83 | % | ||||||||||||||
Effect to adjust for securities losses (gains), net of tax | — | % | — | % | — | % | 0.00 | % | — | % | — | % | (0.00) | % | ||||||||||||||
Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax (8) | 0.17 | % | 0.33 | % | 0.24 | % | 0.11 | % | 0.01 | % | 0.25 | % | 0.23 | % | ||||||||||||||
Effect to adjust for FDIC special assessment, net of tax | — | % | 0.03 | % | 0.21 | % | 1.50 | % | — | % | 0.08 | % | — | % | ||||||||||||||
Adjusted return on average common equity (non-GAAP) | 10.08 | % | 9.94 | % | 8.81 | % | 9.60 | % | 9.25 | % | 9.62 | % | 10.06 | % | ||||||||||||||
Return on Average Common Tangible Equity (3) | ||||||||||||||||||||||||||||
Return on average common equity (GAAP) | 9.91 | % | 9.58 | % | 8.36 | % | 7.99 | % | 9.24 | % | 9.29 | % | 9.83 | % | ||||||||||||||
Effect to adjust for intangible assets | 5.72 | % | 5.91 | % | 5.27 | % | 5.54 | % | 6.28 | % | 5.65 | % | 6.84 | % | ||||||||||||||
Return on average tangible equity (non-GAAP) | 15.63 | % | 15.49 | % | 13.63 | % | 13.53 | % | 15.52 | % | 14.94 | % | 16.67 | % | ||||||||||||||
Adjusted Return on Average Common Tangible Equity (2) (3) | ||||||||||||||||||||||||||||
Return on average common equity (GAAP) | 9.91 | % | 9.58 | % | 8.36 | % | 7.99 | % | 9.24 | % | 9.29 | % | 9.83 | % | ||||||||||||||
Effect to adjust for securities losses (gains), net of tax | — | % | — | % | — | % | 0.00 | % | — | % | — | % | (0.00) | % | ||||||||||||||
Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax (8) | 0.18 | % | 0.32 | % | 0.25 | % | 0.10 | % | 0.01 | % | 0.25 | % | 0.23 | % | ||||||||||||||
Effect to adjust for FDIC special assessment, net of tax | — | % | 0.03 | % | 0.21 | % | 1.50 | % | — | % | 0.08 | % | — | % | ||||||||||||||
Effect to adjust for intangible assets, net of tax | 5.80 | % | 6.12 | % | 5.53 | % | 6.53 | % | 6.29 | % | 5.82 | % | 6.97 | % | ||||||||||||||
Adjusted return on average common tangible equity (non-GAAP) | 15.89 | % | 16.05 | % | 14.35 | % | 16.12 | % | 15.54 | % | 15.44 | % | 17.03 | % | ||||||||||||||
Adjusted Efficiency Ratio (4) | ||||||||||||||||||||||||||||
Efficiency ratio | 56.58 | % | 57.03 | % | 58.48 | % | 63.43 | % | 54.00 | % | 57.35 | % | 52.98 | % | ||||||||||||||
Effect to adjust for merger, branch consolidation, severance related and other expense (8) | (0.78) | % | (1.36) | % | (1.08) | % | (0.43) | % | (0.04) | % | (1.07) | % | (0.87) | % | ||||||||||||||
Effect to adjust for FDIC special assessment | — | % | (0.15) | % | (0.93) | % | (6.11) | % | — | % | (0.35) | % | — | % | ||||||||||||||
Adjusted efficiency ratio | 55.80 | % | 55.52 | % | 56.47 | % | 56.89 | % | 53.96 | % | 55.93 | % | 52.11 | % | ||||||||||||||
Tangible Book Value Per Common Share (3) | ||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 77.42 | $ | 74.16 | $ | 72.82 | $ | 72.78 | $ | 68.81 | ||||||||||||||||||
Effect to adjust for intangible assets | (26.16) | (26.26) | (26.34) | (26.46) | (26.55) | |||||||||||||||||||||||
Tangible book value per common share (non-GAAP) | $ | 51.26 | $ | 47.90 | $ | 46.48 | $ | 46.32 | $ | 42.26 | ||||||||||||||||||
Tangible Equity-to-Tangible Assets (3) | ||||||||||||||||||||||||||||
Equity-to-assets (GAAP) | 12.81 | % | 12.42 | % | 12.29 | % | 12.32 | % | 11.63 | % | ||||||||||||||||||
Effect to adjust for intangible assets | (3.94) | % | (4.03) | % | (4.08) | % | (4.11) | % | (4.15) | % | ||||||||||||||||||
Tangible equity-to-tangible assets (non-GAAP) | 8.87 | % | 8.39 | % | 8.21 | % | 8.21 | % | 7.48 | % |
Footnotes to tables: | |
(1) | Includes loan accretion (interest) income related to the discount on acquired loans of |
(2) | Adjusted earnings, adjusted return on average assets, adjusted EPS, and adjusted return on average equity are non-GAAP measures and exclude the gains or losses on sales of securities, merger, branch consolidation, severance related and other expense, and FDIC special assessments. Management believes that non-GAAP adjusted measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. Adjusted earnings and the related adjusted return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger, branch consolidation, severance related and other expense of |
(3) | The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of GAAP to Non-GAAP" provide tables that reconcile GAAP measures to non-GAAP. |
(4) | Adjusted efficiency ratio is calculated by taking the noninterest expense excluding merger, branch consolidation, severance related and other expense, FDIC special assessment and amortization of intangible assets, divided by net interest income and noninterest income excluding securities gains (losses). The pre-tax amortization expenses of intangible assets were |
(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, 2024 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. |
(8) | Includes pre-tax cyber incident costs of |
Cautionary Statement Regarding Forward Looking Statements
This communication contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other related federal securities laws. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, including information about Independent Bank Group, Inc.'s ("IBTX"), SouthState Corporation's ("SouthState") or the combined company's possible or assumed future results of operations, including its future revenues, income, expenses, provision for taxes, effective tax rate, earnings (loss) per share and cash flows, its future capital expenditures and dividends, its future financial condition and changes therein, including changes in IBTX's, SouthState's or the combined company's loan portfolio and allowance for credit losses, IBTX's, SouthState's or the combined company's future capital structure or changes therein, the plan and objectives of management for future operations, IBTX's, SouthState's or the combined company's future or proposed acquisitions, the future or expected effect of acquisitions on IBTX's, SouthState's or the combined company's operations, results of operations and financial condition, IBTX's, SouthState's or the combined company's future economic performance and the statements of the assumptions underlying any such statement. Such statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is estimated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may" or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. The forward-looking statements that IBTX and SouthState make are based on their current plans, estimates, expectations, ambitions and assumptions regarding IBTX's, SouthState's and the combined company's business, the economy and other future conditions.
Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are beyond the control of IBTX and SouthState. IBTX's, SouthState's and the combined company's actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Many possible events or factors could affect IBTX's, SouthState's and the combined company's future financial results and performance and could cause those results or performance to differ materially from those expressed in the forward-looking statements. In addition to factors previously disclosed in IBTX's and SouthState's reports filed with the
These factors are not necessarily all of the factors that could cause IBTX's, SouthState's or the combined company's actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm IBTX's, SouthState's or the combined company's results.
IBTX and SouthState urge you to consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by IBTX and/or SouthState. As a result of these and other matters, including changes in facts, assumptions not being realized or other factors, the actual results relating to the subject matter of any forward-looking statement may differ materially from the anticipated results expressed or implied in that forward-looking statement. Any forward-looking statement made in this communication or made by IBTX or SouthState in any report, filing, document or information incorporated by reference in this communication, speaks only as of the date on which it is made. IBTX and SouthState undertake no obligation to update any such forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. IBTX and SouthState believe that these assumptions or bases have been chosen in good faith and that they are reasonable. However, IBTX and SouthState caution you that assumptions as to future occurrences or results almost always vary from actual future occurrences or results, and the differences between assumptions and actual occurrences and results can be material. Therefore, IBTX and SouthState caution you not to place undue reliance on the forward-looking statements contained in this filing or incorporated by reference herein.
If IBTX or SouthState update one or more forward-looking statements, no inference should be drawn that IBTX or SouthState will make additional updates with respect to those or other forward-looking statements. Further information regarding IBTX, SouthState and factors which could affect the forward-looking statements contained herein can be found in IBTX's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1564618/000156461824000025/ibtx-20231231.htm), and its other filings with the SEC, and in SouthState's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/764038/000155837024002302/ssb-20231231x10k.htm), and its other filings with the SEC.
View original content to download multimedia:https://www.prnewswire.com/news-releases/southstate-corporation-reports-third-quarter-2024-results-declares-quarterly-cash-dividend-302284935.html
SOURCE SouthState Corporation
FAQ
What was SouthState 's (SSB) earnings per share in Q3 2024?
How much did SSB's deposits grow in Q3 2024?
What dividend did SSB declare for Q3 2024?