SouthState Corporation Reports Third Quarter 2024 Results, Declares Quarterly Cash Dividend
WINTER HAVEN, Fla., Oct. 23, 2024 /PRNewswire/ -- SouthState Corporation (NYSE:SSB) today released its unaudited results of operations and other financial information for the three-month and nine-month periods ended September 30, 2024.
"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 7% during the quarter", commented John C. Corbett, SouthState's Chief Executive Officer. "We were also pleased to receive overwhelming shareholder support for our acquisition of IBTX. We look forward to joining with Independent Financial and building shareholder value in the best growth markets in the country."
Highlights of the third quarter of 2024 include:
Returns
Reported Diluted Earnings per Share ("EPS") of $1.86; Adjusted Diluted EPS (Non-GAAP) of $1.90
Net Income of $143.2 million; Adjusted Net Income (Non-GAAP) of $145.7 million
Return on Average Common Equity of 9.9%; Return on Average Tangible Common Equity (Non-GAAP) of 15.6% and Adjusted Return on Average Tangible Common Equity (Non-GAAP) of 15.9%*
Return on Average Assets ("ROAA") of 1.25% and Adjusted ROAA (Non-GAAP) of 1.27%*
Book Value per Share of $77.42; Tangible Book Value ("TBV") per Share (Non-GAAP) of $51.26
Performance
Net Interest Income of $351 million; Core Net Interest Income (excluding loan accretion) (Non-GAAP) of $349 million
Net Interest Margin ("NIM"), non-tax equivalent of 3.39% and tax equivalent (Non-GAAP) of 3.40%
Net charge-offs of $6.1 million, or 0.07% annualized; ($7.0) million release of Provision for Credit Losses ("PCL"), including a release for unfunded commitments of $8.7 million; total allowance for credit losses ("ACL") plus reserve for unfunded commitments of 1.52%
Noninterest Income of $75 million; Noninterest Income represented 0.65% of average assets for the third quarter of 2024*
Efficiency Ratio of 57% and Adjusted Efficiency Ratio (Non-GAAP) of 56%
∗ Annualized percentages
Balance Sheet
Loans increased $314 million, or 4% annualized, led by increases in consumer real estate and commercial and industrial; ending loan to deposit ratio of 89%
Deposits increased $540 million, or 6% annualized
Total loan yield of 5.86%, up 0.04% from prior quarter
Total deposit cost of 1.90%, up 0.10% 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%, and 12.5%, 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 $0.54 per share, payable on November 15, 2024 to shareholders of record as of November 8, 2024
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 - $2.50 par value; authorized 160,000,000 shares
190,674
190,489
190,443
190,055
190,043
Surplus
4,249,672
4,238,192
4,230,345
4,240,413
