COLUMBIA, S.C.--(BUSINESS WIRE)--South State Corporation (NASDAQ: SSB) today released its unaudited results of operations and other financial information for the three-month and twelve-month periods ended December 31, 2014. Annual (2014) highlights include the following:
-
Net income available to the common shareholder improved by 55.4% to
$74.4 million
- Earnings per share (EPS) – diluted was $3.08 compared to $2.38 in 2013, an increase of 29.4%
- Operating earnings available to the common shareholder improved by 42.9% to $90.6 million
- Operating EPS – diluted was $3.75 compared to $3.16 in 2013, an increase of 18.7%
- Increased dividend paid to common shareholders by 10.8%
-
Non-acquired loan growth for 2014 was $602.6 million or 21.0%
- C&I loans grew by $84.1 million or 26.1%
- Construction & land development loans grew by $64.3 million or 21.4%
- Consumer real estate loans grew by $265.4 million or 33.0%
- Commercial owner occupied loans grew by $74.4 million or 8.9%
- Consumer non real estate loans grew by $52.9 million or 38.8%
-
Performance ratio improvement
- Return on average assets improved to 0.95% from 0.77%
- Operating return on average assets improved to 1.15% from 1.02%
- Return on average tangible equity improved to 13.77% from 11.54%
- Operating return on average tangible common equity improved to 16.56% from 15.00%
- Efficiency ratio improved to 71.41% from 75.85%
-
Balance sheet and tangible book value continued to strengthen
- Net loan growth of $28.4 million (non-acquired loan growth offset the acquired loan run off)
- OREO decreased $22.2 million, or 34.2% to $42.7 million
- Noninterest bearing deposits increased by $153.5 million or 10.3%
- Tangible book value improved to $25.59 per share, a $3.23 per share increase, or 14.5%
- Tangible common equity to tangible assets improved to 8.28% from 7.13%
-
Asset quality continued improvement
- Nonperforming assets (NPAs) declined by 26.4%, or $28.6 million, to $79.6 million
- NPAs to total assets improved to 1.02% from 1.36% in 2013
- Net charge offs on non-acquired loans declined to 0.16% in 2014 compared to 0.41% in 2013
- Coverage ratio on non-acquired non-performing loans improved to 121.1% from 81.2% in 2013
Quarterly Cash Dividend
The Board of Directors of South State Corporation has declared a quarterly cash dividend of $0.23 per share payable on its common stock. This per share amount is $0.01 per share, or 4.5% higher than the dividend paid in the immediately preceding quarter and is $0.04 per share, or 21.1%, higher than a year ago. The dividend will be payable on February 20, 2015 to shareholders of record as of February 13, 2015.
Fourth Quarter 2014 Financial Performance
Please refer to the accompanying tables for detailed comparative data on results of operations and financial results.
The Company reported consolidated net income available to common shareholders of $21.2 million, or $0.88 per diluted common share for the three months ended December 31, 2014 up from $19.3 million, or $0.80 per diluted common share for the three months ended September 30, 2014. The $1.9 million increase was primarily the result of $1.2 million increase in net interest income, a decline in the provision for loan losses of $610,000, an increase in noninterest income of $850,000, lower noninterest expenses of $380,000, partially offset by an increase in the provision for income taxes of $1.1 million. During the quarter, our effective income tax rate remained low at 30.77% similar to the 30.16% in third quarter of 2014. The low rate in the fourth quarter of 2014 was primarily the result of additional state income tax credits acquired during the quarter. The full year effective tax rate was 32.30% compared to 34.00% for 2013. Going forward, the Company expects to have an effective tax rate of approximately 34%.
“I am pleased to report an increase in net income of 55.4% and a 10.8% increase in our dividends paid during 2014. It was a transformational year for our company, as we completed the integration of First Federal, consolidated our five brands into South State and made significant gains in building a platform that will carry our company forward,” said Robert R. Hill, Jr., CEO of South State Corporation. “During the year much changed, but our continued focus on our customers allowed us to attract new customer relationships while retaining and enhancing existing relationships. The quality of our loan portfolio was also a major contributor to our success this year. Our total non-performing assets declined to approximately the 1% level, while net charge offs declined to 0.16%. The strength of our balance sheet, 16.56% operating return on tangible common equity, and the significant steps undertaken to continue building our infrastructure should have us very well-positioned for the future.”
Asset Quality
During the fourth quarter of 2014, overall asset quality continued to improve. Non-acquired NPAs, excluding acquired loans and acquired other real estate owned (OREO), declined by $3.4 million, or 8.5%, to $36.5 million. Non-acquired nonperforming loans decreased by $2.0 million, or 6.4%, and non-acquired OREO decreased $1.4 million, or 15.1%. Non-acquired NPAs as a percentage of total non-acquired loans and repossessed assets declined to 1.05% compared to 1.20% in the third quarter of 2014. Total NPAs, including acquired NPAs, declined by $8.6 million from the third quarter 2014 level of $88.2 million to $79.6 million at December 31, 2014.
During the fourth quarter, the Company reported $7.6 million in nonperforming loans related to “acquired non-credit impaired loans”. This was an increase of $1.8 million from the third quarter of 2014. Additionally, acquired nonperforming OREO and other assets owned declined by $7.1 million from September 30, 2014. From December 31, 2013, total nonperforming assets, including acquired assets, has declined by more than 26%, or $28.6 million.
At December 31, 2014, the allowance for non-acquired loan losses was $34.5 million or 1.00% of non-acquired period-end loans. The current allowance for loan losses provides 1.21 times coverage of period-end non-acquired nonperforming loans, up from 1.14 times at the end of the third quarter of 2014 and up from 0.81 times at December 31, 2013. Net charge-offs within the non-acquired portfolio were $1.1 million for the quarter or 0.13% annualized, down from the third quarter of 2014 of $2.1 million or 0.26% annualized, and down from the fourth quarter of 2013 of $1.8 million or 0.26% annualized.
During the quarter, net charge offs related to “acquired non-credit impaired loans” were $490,000 or 0.14% annualized, and the Company recorded a provision for loan losses, accordingly.
Total OREO decreased by $8.5 million during the fourth quarter to $42.7 million compared to the third quarter of 2014 of $51.3 million. This decline was the result of our continued effort in disposing of these assets. Additionally, non-acquired OREO write downs during the fourth quarter were $100,000 on four assets compared to $950,000 on fifteen assets in the third quarter. As a result, our OREO and loan related costs were down $850,000 during the quarter to $2.5 million compared to the third quarter of $3.4 million.
Net Interest Income and Margin
Non-taxable equivalent net interest income was $81.6 million for the fourth quarter of 2014, a $1.2 million increase from the third quarter of 2014, resulting primarily from the following:
1. A $118.5 million decrease in the average balance of acquired loans from the third quarter of 2014, coupled with the fourth quarter recast where loan pools nonaccretable yield reduced by approximately $51.0 million (the majority coming from loan pools of the First Federal acquired loan pools). This release resulted in net improved accretable yield of approximately $40.0 million which will be recognized over time. In the fourth quarter, the yield on the acquired loan portfolio increased 40 basis points from 7.28% to 7.68% resulting in an increase of $136,000 in interest income;
2. A $136.8 million increase in the average balance of non-acquired loans which resulted in an increase in interest income of approximately $800,000; while the yield declined from 4.15% during the third quarter to 4.08% in the fourth quarter; and
3. The decrease in interest expense from funding sources was $150,000. Transaction and money market accounts were responsible for the majority of this decline which was driven primarily by a decline in interest rates.
Tax-equivalent net interest margin increased 7 basis points from the third quarter of 2014 and declined by 19 basis points from the fourth quarter of 2013. The Company’s average yield on interest-earning assets increased 6 basis points while the average rate on interest-bearing liabilities decreased 1 basis point from the third quarter of 2014. During the fourth quarter of 2014, the Company’s average total assets slightly decreased to $7.9 billion and average earning assets remained at $6.9 billion. Average interest-bearing liabilities declined by approximately $78.8 million to $5.2 billion. Average non-interest bearing demand deposits increased by $22.5 million during the quarter and by $167.9 million from December 31, 2013.
Noninterest Income and Expense
Noninterest income was higher than the third quarter of 2014 by approximately $850,000 to $25.3 million for the fourth quarter of 2014. The increase was primarily the result of lower amortization of the FDIC indemnification asset by $650,000 and higher other revenue of $460,000. These two were partially offset by declines in service charges on deposit accounts and lower bankcard services income. Compared to the fourth quarter of 2013, noninterest income grew by $4.7 million due primarily to the reduced amortization of the indemnification asset by $3.3 million and improved mortgage banking income of $1.6 million.
Noninterest expense was $74.7 million in the fourth quarter of 2014, down from $75.1 million in the third quarter of 2014. This decrease from the third quarter of 2014 was primarily due to lower cost in salaries and employee benefits, OREO expense and other loan related, and merger-branding related charges. These three categories were offset with increases due primarily to discretionary related spending, timing relative to the conversion during third quarter, loan production related cost, and passive losses from investments for tax credits which increased $800,000 during the quarter.
The efficiency ratio for the quarter was 69.3%, down from 71.0% in the third quarter. Our operating efficiency ratio, which excludes merger and brand-related expenses and OREO and loan related expenses, increased to 62.7% compared to 61.3% in the third quarter.
Compared to the fourth quarter of 2013, noninterest expense was down from the fourth quarter of 2013 by $9.2 million. There was a decline in most categories from a year ago led by merger/branding related, OREO expense and other loan related, salaries and employee benefits, furniture and equipment expense and information services expense. These declines were offset by increases in supplies, printing and postage and an increase in passive losses related to certain tax advantaged investments.
Balance Sheet and Capital
At December 31, 2014, the Company’s total assets were $7.8 billion, down from $7.9 billion at September 30, 2014, and at December 31, 2013. Since December 31, 2013, the Company has experienced asset growth in the following areas: investment securities portfolio by $14.3 million or 1.8%, non-acquired loans by $602.6 million, or 21.0%, and loans held for sale by $29.7 million, or 97.1%. Loans held for sale increased primarily from the increase in closings of mortgage loans from the pipeline. Fully offsetting these increases were decreases in acquired loans by $574.2 million, the FDIC receivable by $64.3 million, cash and cash equivalents by $61.6 million, decrease in deferred tax assets of $30.2 million and OREO by $22.2 million.
The Company’s book value per common share increased to $40.78 per share at December 31, 2014, compared to $40.07 at September 30, 2014. Capital increased by $17.9 million due primarily to net income of $21.2 million, which was offset by the common dividend paid of $5.3 million. Accumulated comprehensive loss decreased by $764,000, net of tax, in the fourth quarter, primarily the result of the increased unrealized gain in the available for sale investment securities portfolio, which was partially offset by an unrealized loss in the pension plan recorded in the fourth quarter. At December 31, 2014, capital was $3.5 million greater than the level at December 31, 2013 even with the redemption of $65.0 million of preferred stock in March of 2014 and paying cash dividends of $20.8 million during 2014 (both common and preferred). Tangible book value (“TBV”) per common share increased by $0.81 per share to $25.59 at December 31, 2014, from $24.78 at September 30, 2014. This increase was primarily the result of the strong net income during the quarter, net of the dividend paid to shareholders. In addition, tangible common equity to tangible assets increased to 8.28% at December 31, 2014 up from 7.96% at the end of the third quarter of 2014. Tangible common equity was 7.13% at December 31, 2013.
The total risk-based capital ratio is estimated to be 14.3% up from September 30, 2014 of 14.1%. Tier 1 leverage ratio increased to approximately 9.4% from 9.1% at September 30, 2014. The increase was driven by net income for the quarter. The Company’s capital position remains “well-capitalized” by all measures at December 31, 2014.
“Our tangible book value increased by $0.81 per share during the quarter, a 13.0% annualized increase, to $25.59, while our tangible common equity to tangible assets increased from 7.96% at the end third quarter to 8.28% at December 31, 2014” said John C. Pollok, COO and CFO. “In addition during 2014, GAAP diluted earnings per share improved from $0.55 per share in the fourth quarter of 2013 to $0.88 per share in the fourth quarter of 2014, a 60.0% increase, and operating diluted earnings per share improved from $0.80 per share in the fourth quarter of 2013 to $1.01 per share in the fourth quarter of 2014, a 26.3% increase.”
South State Corporation will hold a conference call today, January 27th; at 11 a.m. Eastern Time during which management will review earnings and performance trends. Callers wishing to participate may call toll-free by dialing 877-506-9272. The number for international participants is 412-380-2004. The conference ID number is 10058469. Participants can also listen to the live audio webcast through the Investor Relations section of www.SouthStateBank.com. A replay will be available beginning January 27th by 2:00 p.m. Eastern Time until 9:00 a.m. on February 11, 2015. To listen to the replay, dial 877-344-7529 or 412-317-0088. The passcode is 10058469.
South State Corporation is the largest bank holding company headquartered in South Carolina. Founded in 1933, the company’s primary subsidiary, South State Bank, has been serving the financial needs of its local communities in 19 South Carolina counties, 12 Georgia counties and 4 North Carolina counties for over 80 years. The bank also operates Minis & Co., Inc. and First Southeast 401K Fiduciaries, Inc., both registered investment advisors; and First Southeast Investor Services, Inc., a limited purpose broker-dealer. South State Corporation has assets of approximately $7.8 billion and its stock is traded under the symbol SSB on the NASDAQ Global Select Market. More information can be found at www.SouthStateBank.com.
Non-GAAP Measures
Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures. Management believes that these non-GAAP measures provide additional useful information. 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.
Cautionary Statement Regarding Forward Looking Statements
Statements included in this report 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 21E of the Securities Exchange Act of 1934. Forward looking statements generally include words such as “expects,” “projects,” “anticipates,” “believes,” “intends,” “estimates,” “strategy,” “plan,” “potential,” “possible” and other similar expressions. The Company cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from anticipated results. Such risks and uncertainties, include, among others, the following possibilities: (1) the outcome of any legal proceedings instituted against the Company; (2) 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; (3) interest risk involving the effect of a change in interest rates on the bank’s earnings, the market value of the bank's loan and securities portfolios, and the market value of the Company's equity; (4) liquidity risk affecting the bank’s ability to meet its obligations when they come due; (5) risks associated with an anticipated increase in the Company's investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities the Company desires to acquire are not available on terms acceptable to the Company; (6) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (7) transaction risk arising from problems with service or product delivery; (8) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (9) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, increased capital requirements (including, without limitation, the impact of the capital rules adopted to implement Basel III), Consumer Financial Protection Bureau rules and regulations, and potential changes in accounting principles relating to loan loss recognition; (10) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (11) reputation risk that adversely affects earnings or capital arising from negative public opinion; (12) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (13) cybersecurity risk related to our dependence on internal computer systems and the technology of outside service providers, as well as the potential impacts of third-party security breaches, subjects the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (14) economic downturn risk potentially resulting in deterioration in the credit markets, greater than expected non-interest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential negative economic developments resulting from federal spending cuts and/or one or more federal budget-related impasses or actions; (15) greater than expected noninterest expenses; (16) excessive loan losses; (17) failure to realize synergies and other financial benefits from, and to limit liabilities associated with, mergers and acquisitions, including, without limitation, the merger with First Financial Holdings, Inc. ("FFCH"), within the expected time frame; (18) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with merger and acquisition integration, including, without limitation, with respect to FFCH, and including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters; (19) the risks of fluctuations in market prices for Company common stock that may or may not reflect economic condition or performance of the Company; (20) the payment of dividends on Company common stock is subject to regulatory supervision as well as the discretion of the board of directors of the Company, the Company's performance and other factors; and (21) other risks and uncertainties disclosed in the Company's most recent Annual Report on Form 10-K filed with the SEC or disclosed in documents filed or furnished by the Company with or to the SEC after the filing of such Annual report on Form 10-K, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward looking statements. The Company undertakes no obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
| SOUTH STATE CORPORATION AND SUBSIDIARY | ||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||
| Fourth | ||||||||||||||||||||||||||||||||||
| Three Months Ended | Quarter | Twelve Months Ended | YTD | |||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 2014 - 2013 | December 31, | 2014 - 2013 | |||||||||||||||||||||||||||
| EARNINGS SUMMARY (non tax equivalent) | 2014 | 2014 | 2014 | 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||||||||
| Interest income (A) | $ | 85,380 | $ | 84,348 | $ | 84,831 | $ | 87,463 | $ | 88,766 | -3.8 | % | $ | 342,022 | $ | 286,348 | 19.4 | % | ||||||||||||||||
| Interest expense | 3,829 | 3,979 | 3,858 | 3,996 | 4,351 | -12.0 | % | 15,662 | 12,987 | 20.6 | % | |||||||||||||||||||||||
| Net interest income | 81,551 | 80,369 | 80,973 | 83,467 | 84,415 | -3.4 | % | 326,360 | 273,361 | 19.4 | % | |||||||||||||||||||||||
| Provision for loan losses (1) | 1,481 | 2,091 | 2,169 | 849 | (12 | ) | -12441.7 | % | 6,590 | 1,886 | 249.4 | % | ||||||||||||||||||||||
| Noninterest income | 25,299 | 24,453 | 24,399 | 20,545 | 20,649 | 22.5 | % | 94,696 | 53,720 | 76.3 | % | |||||||||||||||||||||||
| Noninterest expense | 74,676 | 75,058 | 75,889 | 77,415 | 83,888 | -11.0 | % | 303,038 | 250,620 | 20.9 | % | |||||||||||||||||||||||
| Income before provision for income taxes | 30,693 | 27,673 | 27,314 | 25,748 | 21,188 | 44.9 | % | 111,428 | 74,575 | 49.4 | % | |||||||||||||||||||||||
| Provision for income taxes | 9,445 | 8,346 | 9,368 | 8,832 | 7,204 | 31.1 | % | 35,991 | 25,356 | 41.9 | % | |||||||||||||||||||||||
| Net income | 21,248 | 19,327 | 17,946 | 16,916 | 13,984 | 51.9 | % | 75,437 | 49,219 | 53.3 | % | |||||||||||||||||||||||
| Preferred stock dividends | -- | -- | -- | 1,073 | 812 | 1,073 | 1,354 | |||||||||||||||||||||||||||
| Net income available to common shareholders (GAAP) | $ | 21,248 | $ | 19,327 | $ | 17,946 | $ | 15,843 | $ | 13,172 | 61.3 | % | $ | 74,364 | $ | 47,865 | 55.4 | % | ||||||||||||||||
| Effective tax rate | 30.77 | % | 30.16 | % | 34.30 | % | 34.30 | % | 34.00 | % | 32.30 | % | 34.00 | % | ||||||||||||||||||||
| Basic weighted-average common shares | 23,911,515 | 23,898,982 | 23,892,245 | 23,873,178 | 23,825,636 | 0.4 | % | 23,897,051 | 19,865,674 | 20.3 | % | |||||||||||||||||||||||
| Diluted weighted-average common shares | 24,189,289 | 24,160,461 | 24,140,600 | 24,116,174 | 24,079,350 | 0.5 | % | 24,153,657 | 20,077,108 | 20.3 | % | |||||||||||||||||||||||
| Earnings per common share - Basic | $ | 0.89 | $ | 0.81 | $ | 0.75 | $ | 0.66 | $ | 0.55 | 61.8 | % | $ | 3.11 | $ | 2.41 | 29.0 | % | ||||||||||||||||
| Earnings per common share - Diluted | 0.88 | 0.80 | 0.74 | 0.66 | 0.55 | 60.0 | % | 3.08 | 2.38 | 29.4 | % | |||||||||||||||||||||||
| Cash dividends declared per common share | $ | 0.22 | $ | 0.21 | $ | 0.20 | $ | 0.19 | $ | 0.19 | 15.8 | % | $ | 0.82 | $ | 0.74 | 10.8 | % | ||||||||||||||||
| Dividend payout ratio (2) | 25.00 | % | 26.22 | % | 26.89 | % | 28.91 | % | 34.74 | % | -28.0 | % | 26.61 | % | 31.91 | % | -16.6 | % | ||||||||||||||||
| Operating Earnings (non-GAAP) (3) | ||||||||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 21,248 | $ | 19,327 | $ | 17,946 | $ | 16,916 | $ | 13,984 | 51.9 | % | $ | 75,437 | $ | 49,219 | 53.3 | % | ||||||||||||||||
| Securities (gains) losses, net of tax | -- | 63 | (58 | ) | -- | -- | 1 | -- | ||||||||||||||||||||||||||
| Merger and branding related expense, net of tax | 3,184 | 4,781 | 4,277 | 3,932 | 6,147 | -48.2 | % | 16,207 | 15,514 | |||||||||||||||||||||||||
| Net operating earnings (loss) (non-GAAP) | 24,432 | 24,171 | 22,165 | 20,848 | 20,131 | 21.4 | % | 91,646 | 64,733 | 41.6 | % | |||||||||||||||||||||||
| Preferred stock dividends | -- | -- | -- | 1,073 | 812 | 1,073 | 1,354 | |||||||||||||||||||||||||||
| Net operating earnings (loss) available to common shareholders (non-GAAP) | $ | 24,432 | $ | 24,171 | $ | 22,165 | $ | 19,775 | $ | 19,319 | 26.5 | % | $ | 90,573 | $ | 63,379 | 42.9 | % | ||||||||||||||||
| Operating earnings (loss) per common share - Basic | $ | 1.02 | $ | 1.01 | $ | 0.93 | $ | 0.83 | $ | 0.81 | 25.9 | % | $ | 3.79 | $ | 3.19 | 18.8 | % | ||||||||||||||||
| Operating earnings (loss) per common share - Diluted | 1.01 | 1.00 | 0.92 | 0.82 | 0.80 | 26.3 | % | 3.75 | 3.16 | 18.7 | % | |||||||||||||||||||||||
|
Fourth Quarter |
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| AVERAGE for Quarter Ended | AVERAGE for Twelve Months | YTD | ||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 2014 - 2013 | December 31, | December 31, | 2014 - 2013 | ||||||||||||||||||||||||||
| BALANCE SHEET HIGHLIGHTS | 2014 | 2014 | 2014 | 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||||||||
| Loans held for sale | $ | 46,540 | $ | 50,116 | $ | 50,423 | $ | 29,386 | $ | 35,673 | 30.5 | % | $ | 38,745 | $ | 45,015 | -13.9 | % | ||||||||||||||||
| Acquired non-credit impaired loans | 1,347,453 | 1,429,100 | 1,479,412 | 1,575,392 | 1,614,294 | -16.5 | % | 1,458,309 | 710,836 | 105.2 | % | |||||||||||||||||||||||
| Acquired credit impaired loans, net of allowance for acquired loan losses | 951,038 | 987,874 | 1,077,960 | 1,162,467 | 1,269,015 | -25.1 | % | 1,042,573 | 1,102,589 | -5.4 | % | |||||||||||||||||||||||
| Non-acquired loans | 3,382,795 | 3,246,025 | 3,061,529 | 2,909,175 | 2,793,522 | 21.1 | % | 3,151,482 | 2,677,450 | 17.7 | % | |||||||||||||||||||||||
| Total loans (1) | 5,681,286 | 5,662,999 | 5,618,901 | 5,647,034 | 5,676,831 | 0.1 | % | 5,652,364 | 4,490,875 | 25.9 | % | |||||||||||||||||||||||
| FDIC receivable for loss share agreements | 27,372 | 38,061 | 60,967 | 83,010 | 105,554 | -74.1 | % | 52,161 | 118,977 | -56.2 | % | |||||||||||||||||||||||
| Total investment securities | 819,625 | 822,833 | 810,909 | 801,263 | 699,592 | 17.2 | % | 813,733 | 610,252 | 33.3 | % | |||||||||||||||||||||||
| Intangible assets | 367,622 | 369,460 | 374,021 | 377,265 | 379,894 | -3.2 | % | 372,058 | 235,341 | 58.1 | % | |||||||||||||||||||||||
| Earning assets | 6,928,942 | 6,930,480 | 6,910,549 | 6,842,708 | 6,881,478 | 0.7 | % | 6,868,918 | 5,539,057 | 24.0 | % | |||||||||||||||||||||||
| Total assets | 7,891,909 | 7,952,004 | 7,942,953 | 7,959,787 | 7,977,604 | -1.1 | % | 7,938,437 | 6,354,973 | 24.9 | % | |||||||||||||||||||||||
| Noninterest-bearing deposits | 1,678,589 | 1,656,120 | 1,591,002 | 1,485,014 | 1,510,734 | 11.1 | % | 1,604,421 | 1,215,052 | 32.0 | % | |||||||||||||||||||||||
| Interest-bearing deposits | 4,838,316 | 4,900,038 | 4,986,465 | 5,033,181 | 5,098,095 | -5.1 | % | 4,938,857 | 4,037,194 | 22.3 | % | |||||||||||||||||||||||
| Total deposits | 6,516,905 | 6,556,158 | 6,577,467 | 6,518,195 | 6,608,829 | -1.4 | % | 6,543,278 | 5,252,246 | 24.6 | % | |||||||||||||||||||||||
| Federal funds purchased and repurchase agreements | 238,842 | 256,000 | 247,672 | 273,636 | 229,382 | 4.1 | % | 253,948 | 274,080 | -7.3 | % | |||||||||||||||||||||||
| Other borrowings | 101,173 | 101,090 | 101,763 | 102,269 | 101,948 | -0.8 | % | 101,195 | 76,421 | 32.4 | % | |||||||||||||||||||||||
| Shareholders' common equity (excludes preferred stock) | 976,396 | 959,536 | 942,935 | 931,961 | 914,335 | 6.8 | % | 952,848 | 684,753 | 39.2 | % | |||||||||||||||||||||||
| Shareholders' equity | 976,396 | 959,536 | 942,935 | 994,073 | 979,335 | -0.3 | % | 968,163 | 712,890 | 35.8 | % | |||||||||||||||||||||||
| South State Corporation | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Fourth | |||||||||||||||||||||||
| ENDING Balance | Quarter | ||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 2014 - 2013 | ||||||||||||||||||
| BALANCE SHEET HIGHLIGHTS | 2014 | 2014 | 2014 | 2014 | 2013 | % Change | |||||||||||||||||
| Loans held for sale | $ | 60,270 | $ | 56,595 | $ | 56,407 | $ | 57,200 | $ | 30,586 | 97.1 | % | |||||||||||
| Acquired non-credit impaired loans | 1,327,999 | 1,377,343 | 1,447,583 | 1,512,201 | 1,600,935 | -17.0 | % | ||||||||||||||||
| Acquired credit impaired loans | 926,767 | 988,524 | 1,056,495 | 1,124,809 | 1,232,256 | -24.8 | % | ||||||||||||||||
| Non-acquired loans | 3,467,826 | 3,304,708 | 3,174,625 | 2,979,958 | 2,865,216 | 21.0 | % | ||||||||||||||||
| Total loans (1) | 5,722,592 | 5,670,575 | 5,678,703 | 5,616,968 | 5,698,407 | 0.4 | % | ||||||||||||||||
| FDIC receivable for loss share agreements | 22,161 | 30,983 | 43,766 | 67,984 | 86,447 | -74.4 | % | ||||||||||||||||
| Total investment securities | 826,943 | 826,021 | 816,648 | 814,533 | 812,603 | 1.8 | % | ||||||||||||||||
| Intangible assets | 366,927 | 368,979 | 371,118 | 375,315 | 377,596 | -2.8 | % | ||||||||||||||||
| Allowance for acquired credit impaired loan losses | (7,365 | ) | (8,032 | ) | (9,159 | ) | (11,046 | ) | (11,618 | ) | -36.6 | % | |||||||||||
| Allowance for non-acquired loan losses (1) | (34,539 | ) | (34,804 | ) | (35,422 | ) | (34,669 | ) | (34,331 | ) | 0.6 | % | |||||||||||
| Premises and equipment | 171,772 | 173,425 | 184,113 | 187,127 | 188,114 | -8.7 | % | ||||||||||||||||
| Total assets | 7,826,227 | 7,880,088 | 7,993,686 | 7,990,975 | 7,931,498 | -1.3 | % | ||||||||||||||||
| Noninterest-bearing deposits | 1,639,953 | 1,654,308 | 1,623,291 | 1,581,157 | 1,486,445 | 10.3 | % | ||||||||||||||||
| Interest-bearing deposits | 4,821,092 | 4,863,920 | 4,952,847 | 5,049,496 | 5,067,699 | -4.9 | % | ||||||||||||||||
| Total deposits | 6,461,045 | 6,518,228 | 6,576,138 | 6,630,653 | 6,554,144 | -1.4 | % | ||||||||||||||||
| Federal funds purchased and repurchase agreements | 221,541 | 231,229 | 280,595 | 254,985 | 211,401 | 4.8 | % | ||||||||||||||||
| Other borrowings | 101,210 | 101,127 | 101,045 | 100,963 | 102,060 | -0.8 | % | ||||||||||||||||
| Total liabilities | 6,841,307 | 6,913,093 | 7,040,668 | 7,056,812 | 6,950,029 | -1.6 | % | ||||||||||||||||
| Shareholders' common equity (excludes preferred stock) | 984,920 | 966,995 | 953,018 | 934,163 | 916,469 | 7.5 | % | ||||||||||||||||
| Shareholders' equity | 984,920 | 966,995 | 953,018 | 934,163 | 981,469 | 0.4 | % | ||||||||||||||||
| Common shares issued and outstanding | 24,150,702 | 24,135,220 | 24,130,006 | 24,118,243 | 24,104,124 | 0.2 | % | ||||||||||||||||
| Fourth | |||||||||||||||||||||||
| ENDING Balance | Quarter | ||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 2014 - 2013 | ||||||||||||||||||
| NONPERFORMING ASSETS (ENDING BALANCE) (7) | 2014 | 2014 | 2014 | 2014 | 2013 | % Change | |||||||||||||||||
| Non-acquired | |||||||||||||||||||||||
| Non-acquired nonaccrual loans | $ | 18,569 | $ | 20,419 | $ | 26,546 | $ | 29,190 | $ | 31,333 | -40.7 | % | |||||||||||
| Restructured loans | 9,425 | 9,633 | 8,409 | 8,156 | 10,690 | -11.8 | % | ||||||||||||||||
| Non-acquired other real estate owned ("OREO") | 7,947 | 9,360 | 9,003 | 12,187 | 13,456 | -40.9 | % | ||||||||||||||||
| Accruing loans past due 90 days or more | 522 | 429 | 358 | 96 | 258 | 102.3 | % | ||||||||||||||||
| Other nonperforming assets | -- | -- | -- | -- | -- | ||||||||||||||||||
| Total non-acquired nonperforming assets | 36,463 | 39,841 | 44,316 | 49,629 | 55,737 | -34.6 | % | ||||||||||||||||
| Acquired non-credit impaired loans | |||||||||||||||||||||||
| Acquired nonaccrual loans | 7,538 | 5,359 | -- | -- | -- | ||||||||||||||||||
| Acquired accruing loans past due 90 days or more | 108 | 501 | -- | -- | -- | ||||||||||||||||||
| Total acquired non-credit impaired loans | 7,646 | 5,860 | -- | -- | -- | ||||||||||||||||||
| Acquired OREO and other nonperforming assets | |||||||||||||||||||||||
| OREO covered under FDIC loss share agreements | 16,227 | 18,961 | 21,999 | 29,003 | 27,520 | -41.0 | % | ||||||||||||||||
| OREO not covered under FDIC loss share agreements | 18,552 | 22,929 | 22,732 | 22,957 | 23,941 | -22.5 | % | ||||||||||||||||
| Other nonperforming assets | 694 | 640 | 811 | 1,032 | 943 | ||||||||||||||||||
| Total acquired OREO and other nonperforming assets | 35,473 | 42,530 | 45,542 | 52,992 | 52,404 | -32.3 | % | ||||||||||||||||
| Total acquired nonperforming assets | 43,119 | 48,390 | 45,542 | 52,992 | 52,404 | -17.7 | % | ||||||||||||||||
| Total nonperforming assets | $ | 79,582 | $ | 88,231 | $ | 89,858 | $ | 102,621 | $ | 108,141 | -26.4 | % | |||||||||||
| Excluding Acquired Assets | |||||||||||||||||||||||
| NPLs as a percentage of period end non-acquired loans | 0.82 | % | 0.92 | % | 1.11 | % | 1.26 | % | 1.48 | % | |||||||||||||
| Total nonperforming assets as a percentage of total non-acquired loans and repossessed assets (1) (4) | |||||||||||||||||||||||
| 1.05 | % | 1.20 | % | 1.39 | % | 1.66 | % | 1.94 | % | ||||||||||||||
| Total nonperforming assets as a percentage of total assets (5) | |||||||||||||||||||||||
| 0.47 | % | 0.51 | % | 0.55 | % | 0.62 | % | 0.70 | % | ||||||||||||||
| Including Acquired Assets | |||||||||||||||||||||||
| NPLs as a percentage of period end loans | 0.63 | % | 0.64 | % | 0.62 | % | 0.67 | % | 0.74 | % | |||||||||||||
| Total nonperforming assets as a percentage of total loans and repossessed assets (1) (4) | |||||||||||||||||||||||
| 1.38 | % | 1.54 | % | 1.57 | % | 1.81 | % | 1.88 | % | ||||||||||||||
| Total nonperforming assets as a percentage of total assets | |||||||||||||||||||||||
| 1.02 | % | 1.12 | % | 1.12 | % | 1.28 | % | 1.36 | % | ||||||||||||||
| South State Corporation | ||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
|
Fourth Quarter |
||||||||||||||||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | YTD | ||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 2014 - 2013 | December 31, | December 31, | 2014 - 2013 | ||||||||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES (1) | 2014 | 2014 | 2014 | 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||||||||
| Non-acquired Loans: | ||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 34,804 | $ | 35,422 | $ | 34,669 | $ | 34,331 | $ | 36,145 | -3.7 | % | $ | 34,331 | $ | 44,378 | -22.6 | % | ||||||||||||||||
| Loans charged off | (849 | ) | (1,500 | ) | (1,359 | ) | (901 | ) | (2,778 | ) | -69.4 | % | (4,609 | ) | (13,568 | ) | -66.0 | % | ||||||||||||||||
| Overdrafts charged off | (695 | ) | (1,213 | ) | (530 | ) | (469 | ) | (389 | ) | 78.7 | % | (2,907 | ) | (1,720 | ) | 69.0 | % | ||||||||||||||||
| Loan recoveries | 201 | 362 | 413 | 817 | 1,215 | -83.5 | % | 1,793 | 3,572 | -49.8 | % | |||||||||||||||||||||||
| Overdraft recoveries | 203 | 213 | 144 | 221 | 138 | 47.1 | % | 781 | 651 | 20.0 | % | |||||||||||||||||||||||
| Net charge-offs | (1,140 | ) | (2,138 | ) | (1,332 | ) | (332 | ) | (1,814 | ) | -37.2 | % | (4,942 | ) | (11,065 | ) | -55.3 | % | ||||||||||||||||
| Provision for loan losses on non-acquired loans | 875 | 1,520 | 2,085 | 670 | -- | 5,150 | 1,018 | 405.9 | % | |||||||||||||||||||||||||
| Balance at end of period, non-acquired loans | $ | 34,539 | $ | 34,804 | $ | 35,422 | $ | 34,669 | $ | 34,331 | 0.6 | % | $ | 34,539 | $ | 34,331 | 0.6 | % | ||||||||||||||||
| Acquired Non-Credit Impaired Loans: | ||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||||||||||||||
| Loans charged off | (653 | ) | (879 | ) | -- | -- | -- | (1,531 | ) | -- | ||||||||||||||||||||||||
| Overdrafts charged off | -- | -- | -- | -- | -- | -- | -- | |||||||||||||||||||||||||||
| Loan recoveries | 163 | 441 | -- | -- | -- | 604 | -- | |||||||||||||||||||||||||||
| Overdraft recoveries | -- | -- | -- | -- | -- | -- | -- | |||||||||||||||||||||||||||
| Net charge-offs | (490 | ) | (438 | ) | -- | -- | -- | (927 | ) | -- | ||||||||||||||||||||||||
| Provision for loan losses on acquired non-credit impaired loans | 490 | 438 | -- | -- | -- | 927 | -- | |||||||||||||||||||||||||||
| Balance at end of period, acquired non-credit impaired loans | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||||||||||||||
| Total provision for loan losses charged to operations | $ | 1,223 | $ | 2,091 | $ | 2,169 | $ | 849 | $ | (12 | ) | $ | 6,331 | $ | 1,886 | |||||||||||||||||||
| Allowance for non-acquired loan losses as a percentage of non-acquired loans (1) | ||||||||||||||||||||||||||||||||||
| 1.00 | % | 1.05 | % | 1.12 | % | 1.16 | % | 1.20 | % | 1.00 | % | 1.20 | % | |||||||||||||||||||||
| Allowance for non-acquired loan losses as a percentage of non-acquired nonperforming loans | ||||||||||||||||||||||||||||||||||
| 121.12 | % | 114.18 | % | 100.31 | % | 92.59 | % | 81.20 | % | 121.12 | % | 81.20 | % | |||||||||||||||||||||
| Net charge-offs on non-acquired loans as a percentage of average non-acquired loans (annualized) (1) | ||||||||||||||||||||||||||||||||||
| 0.13 | % | 0.26 | % | 0.17 | % | 0.05 | % | 0.26 | % | 0.16 | % | 0.41 | % | |||||||||||||||||||||
| Net charge-offs on acquired non-credit impaired loans as a percentage of average acquired non-credit impaired loans (annualized) (1) | ||||||||||||||||||||||||||||||||||
| 0.14 | % | 0.12 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.06 | % | 0.00 | % | |||||||||||||||||||||
| DAY 2 VALUATION ALLOWANCE ON ACQUIRED CREDIT IMPAIRED LOANS | ||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 8,032 | $ | 9,159 | $ | 11,046 | $ | 11,618 | $ | 12,260 | $ | 11,618 | $ | 17,218 | ||||||||||||||||||||
| Provision for loan losses on acquired credit impaired loans: | ||||||||||||||||||||||||||||||||||
| Provision for loan losses before benefit attributable | ||||||||||||||||||||||||||||||||||
| to FDIC loss share agreements | (118 | ) | (658 | ) | (1,438 | ) | 304 | 73 | (1,910 | ) | (918 | ) | ||||||||||||||||||||||
| Benefit attributable to FDIC loss share agreements | (24 | ) | 791 | 1,522 | (125 | ) | (85 | ) | 2,164 | 1,786 | ||||||||||||||||||||||||
| Net provision for loan losses on acquired credit impaired loans | (142 | ) | 133 | 84 | 179 | (12 | ) | 254 | 868 | |||||||||||||||||||||||||
| Provision for loan losses recorded through the FDIC | ||||||||||||||||||||||||||||||||||
| loss share receivable | 24 | (791 | ) | (1,522 | ) | 125 | 85 | (2,164 | ) | (1,786 | ) | |||||||||||||||||||||||
| Reduction due to loan removals (12) | (550 | ) | (469 | ) | (449 | ) | (876 | ) | (715 | ) | (2,344 | ) | (4,682 | ) | ||||||||||||||||||||
| Balance at end of period, acquired credit impaired loans | $ | 7,364 | $ | 8,032 | $ | 9,159 | $ | 11,046 | $ | 11,618 | $ | 7,364 | $ | 11,618 | ||||||||||||||||||||
| South State Corporation | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||
| Fourth | ||||||||||||||||||
| ENDING Balance | Quarter | |||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 2014 - 2013 | |||||||||||||
| LOAN PORTFOLIO (ENDING balance) (1) | 2014 | 2014 | 2014 | 2014 | 2013 | % Change | ||||||||||||
| Acquired loans: | ||||||||||||||||||
| Acquired covered loans: | ||||||||||||||||||
| Commercial non-owner occupied real estate: | ||||||||||||||||||
| Construction and land development | $ | 20,275 | $ | 22,291 | $ | 30,859 | $ | 37,757 | $ | 43,396 | -53.3 | % | ||||||
| Commercial non-owner occupied | 35,035 | 36,653 | 47,017 | 50,814 | 53,525 | -34.5 | % | |||||||||||
| Total commercial non-owner occupied real estate | 55,310 | 58,944 | 77,876 | 88,571 | 96,921 | -42.9 | % | |||||||||||
| Consumer real estate: | ||||||||||||||||||
| Consumer owner occupied | 30,304 | 31,757 | 36,017 | 37,111 | 38,946 | -22.2 | % | |||||||||||
| Home equity loans | 35,509 | 35,471 | 33,684 | 34,627 | 35,884 | -1.0 | % | |||||||||||
| Total consumer real estate | 65,813 | 67,228 | 69,701 | 71,738 | 74,830 | -12.0 | % | |||||||||||
| Commercial owner occupied real estate | 45,986 | 54,776 | 72,247 | 78,861 | 88,722 | -48.2 | % | |||||||||||
| Commercial and industrial | 9,887 | 10,450 | 11,711 | 11,964 | 14,475 | -31.7 | % | |||||||||||
| Other income producing property | 20,820 | 22,445 | 27,521 | 29,471 | 31,739 | -34.4 | % | |||||||||||
| Consumer non real estate | 675 | 821 | 1,583 | 1,772 | 1,878 | -64.1 | % | |||||||||||
| Total acquired covered loans | 198,491 | 214,664 | 260,639 | 282,377 | 308,565 | -35.7 | % | |||||||||||
| Acquired non-covered loans: | ||||||||||||||||||
| Commercial non-owner occupied real estate: | ||||||||||||||||||
| Construction and land development | 65,959 | 76,167 | 86,830 | 96,981 | 129,289 | -49.0 | % | |||||||||||
| Commercial non-owner occupied | 181,652 | 192,322 | 191,637 | 204,094 | 226,530 | -19.8 | % | |||||||||||
| Total commercial non-owner occupied real estate | 247,611 | 268,489 | 278,467 | 301,075 | 355,819 | -30.4 | % | |||||||||||
| Consumer real estate: | ||||||||||||||||||
| Consumer owner occupied | 842,995 | 879,302 | 912,346 | 951,131 | 981,834 | -14.1 | % | |||||||||||
| Home equity loans | 294,589 | 303,615 | 313,318 | 324,686 | 335,241 | -12.1 | % | |||||||||||
| Total consumer real estate | 1,137,584 | 1,182,917 | 1,225,664 | 1,275,817 | 1,317,075 | -13.6 | % | |||||||||||
| Commercial owner occupied real estate | 176,268 | 188,482 | 188,490 | 200,370 | 211,030 | -16.5 | % | |||||||||||
| Commercial and industrial | 67,028 | 62,003 | 69,953 | 76,016 | 98,046 | -31.6 | % | |||||||||||
| Other income producing property | 139,496 | 146,819 | 154,100 | 160,498 | 171,544 | -18.7 | % | |||||||||||
| Consumer non real estate | 288,288 | 302,493 | 326,765 | 340,857 | 371,112 | -22.3 | % | |||||||||||
| Total acquired non-covered loans | 2,056,275 | 2,151,203 | 2,243,439 | 2,354,633 | 2,524,626 | -18.6 | % | |||||||||||
| Total acquired loans | 2,254,766 | 2,365,867 | 2,504,078 | 2,637,010 | 2,833,191 | -20.4 | % | |||||||||||
| Non-acquired loans: | ||||||||||||||||||
| Commercial non-owner occupied real estate: | ||||||||||||||||||
| Construction and land development | 364,221 | 385,318 | 371,751 | 319,441 | 299,951 | 21.4 | % | |||||||||||
| Commercial non-owner occupied | 333,590 | 318,470 | 302,961 | 285,145 | 291,170 | 14.6 | % | |||||||||||
| Total commercial non-owner occupied real estate | 697,811 | 703,788 | 674,712 | 604,586 | 591,121 | 18.0 | % | |||||||||||
| Consumer real estate: | ||||||||||||||||||
| Consumer owner occupied | 786,778 | 702,521 | 637,071 | 595,652 | 548,170 | 43.5 | % | |||||||||||
| Home equity loans | 283,934 | 276,341 | 271,028 | 263,057 | 257,139 | 10.4 | % | |||||||||||
| Total consumer real estate | 1,070,712 | 978,862 | 908,099 | 858,709 | 805,309 | 33.0 | % | |||||||||||
| Commercial owner occupied real estate | 907,913 | 881,403 | 849,048 | 845,728 | 833,513 | 8.9 | % | |||||||||||
| Commercial and industrial | 405,923 | 355,580 | 353,211 | 333,574 | 321,824 | 26.1 | % | |||||||||||
| Other income producing property | 150,928 | 154,822 | 151,928 | 158,186 | 143,204 | 5.4 | % | |||||||||||
| Consumer non real estate | 189,317 | 183,451 | 170,982 | 147,710 | 136,410 | 38.8 | % | |||||||||||
| Other | 45,222 | 46,802 | 66,645 | 31,465 | 33,835 | 33.7 | % | |||||||||||
| Total non-acquired loans | 3,467,826 | 3,304,708 | 3,174,625 | 2,979,958 | 2,865,216 | 21.0 | % | |||||||||||
| Total loans (net of unearned income) (1) | $ | 5,722,592 | $ | 5,670,575 | $ | 5,678,703 | $ | 5,616,968 | $ | 5,698,407 | 0.4 | % | ||||||
| Loans held for sale | $ | 60,270 | $ | 56,595 | $ | 56,407 | $ | 57,200 | $ | 30,586 | 97.1 | % | ||||||
| South State Corporation | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
| SELECTED RATIOS | 2014 | 2014 | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Return on average assets (annualized) | 1.07 | % | 0.96 | % | 0.91 | % | 0.86 | % | 0.70 | % | 0.95 | % | 0.77 | % | ||||||||||||||
| Operating return on average assets (annualized) (non-GAAP) (3) | 1.23 | % | 1.21 | % | 1.12 | % | 1.06 | % | 1.00 | % | 1.15 | % | 1.02 | % | ||||||||||||||
| Return on average common equity (annualized) | 8.63 | % | 7.99 | % | 7.63 | % | 6.89 | % | 5.72 | % | 7.80 | % | 6.99 | % | ||||||||||||||
| Return on average equity (annualized) | 8.63 | % | 7.99 | % | 7.63 | % | 6.90 | % | 5.67 | % | 7.79 | % | 6.90 | % | ||||||||||||||
| Operating return on average common equity (annualized) (non-GAAP) (3) | 9.93 | % | 9.99 | % | 9.43 | % | 8.61 | % | 8.38 | % | 9.51 | % | 9.26 | % | ||||||||||||||
| Operating return on average equity (annualized) (non-GAAP) (3) | 9.93 | % | 9.99 | % | 9.43 | % | 8.51 | % | 8.16 | % | 9.47 | % | 9.08 | % | ||||||||||||||
| Return on average tangible common equity (annualized) (non-GAAP) (10) | 14.77 | % | 13.97 | % | 13.62 | % | 12.59 | % | 10.90 | % | 13.77 | % | 11.54 | % | ||||||||||||||
| Operating return on average tangible common equity (annualized) (non-GAAP) (10) | 16.85 | % | 17.23 | % | 16.59 | % | 15.47 | % | 15.46 | % | 16.56 | % | 15.00 | % | ||||||||||||||
| Return on average tangible equity (annualized) (non-GAAP) (10) | 14.77 | % | 13.97 | % | 13.62 | % | 12.03 | % | 10.25 | % | 13.60 | % | 10.86 | % | ||||||||||||||
| Net interest margin (tax equivalent) | 4.72 | % | 4.65 | % | 4.75 | % | 4.99 | % | 4.91 | % | 4.80 | % | 5.00 | % | ||||||||||||||
| Efficiency ratio (tax equivalent) | 69.34 | % | 70.98 | % | 71.52 | % | 73.84 | % | 79.22 | % | 71.41 | % | 75.85 | % | ||||||||||||||
| Operating efficiency ratio excluding OREO expense | 62.73 | % | 61.32 | % | 63.62 | % | 64.06 | % | 66.30 | % | 62.98 | % | 64.87 | % | ||||||||||||||
| Book value per common share | $ | 40.78 | $ | 40.07 | $ | 39.50 | $ | 38.73 | $ | 40.72 | ||||||||||||||||||
| Tangible common equity per common share (non-GAAP) (10) | $ | 25.59 | $ | 24.78 | $ | 24.12 | $ | 23.17 | $ | 22.36 | ||||||||||||||||||
| Common shares issued and outstanding | 24,150,702 | 24,135,220 | 24,130,006 | 24,118,243 | 24,104,124 | |||||||||||||||||||||||
| Common equity-to-assets | 12.58 | % | 12.27 | % | 11.92 | % | 11.69 | % | 11.55 | % | ||||||||||||||||||
| Equity-to-assets | 12.58 | % | 12.27 | % | 11.92 | % | 11.69 | % | 12.37 | % | ||||||||||||||||||
| Tangible common equity-to-tangible assets (non-GAAP) (10) | 8.28 | % | 7.96 | % | 7.63 | % | 7.34 | % | 7.13 | % | ||||||||||||||||||
| Tangible equity-to-tangible assets (non-GAAP) (10) | 8.28 | % | 7.96 | % | 7.63 | % | 7.34 | % | 7.99 | % | ||||||||||||||||||
| Tier 1 leverage (9) | 9.4 | % | 9.1 | % | 8.9 | % | 8.6 | % | 9.3 | % | ||||||||||||||||||
| Tier 1 risk-based capital (9) | 13.5 | % | 13.2 | % | 12.9 | % | 12.7 | % | 13.5 | % | ||||||||||||||||||
| Total risk-based capital (9) | 14.3 | % | 14.1 | % | 13.8 | % | 13.6 | % | 14.4 | % | ||||||||||||||||||
| South State Corporation | |||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | YTD | |||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | 2014 - 2013 | ||||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP TO GAAP | 2014 | 2014 | 2014 | 2014 | 2013 | 2014 | 2013 | % Change | |||||||||||||||||||||||||
| Pre-tax, Pre-provision Operating Earnings (6) | |||||||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 21,248 | $ | 19,327 | $ | 17,946 | $ | 16,916 | $ | 13,984 | $ | 75,437 | $ | 49,219 | 53.3 | % | |||||||||||||||||
| Provision for loan losses (1) | 1,481 | 2,091 | 2,169 | 849 | (12 | ) | 6,590 | 1,886 | 249.4 | % | |||||||||||||||||||||||
| Provision for income taxes | 9,445 | 8,346 | 9,368 | 8,832 | 7,204 | 35,991 | 25,356 | 41.9 | % | ||||||||||||||||||||||||
| Pre-tax, pre-provision income | 32,174 | 29,764 | 29,483 | 26,597 | 21,176 | 118,018 | 76,461 | 54.4 | % | ||||||||||||||||||||||||
| Securities gains | -- | 90 | (88 | ) | -- | -- | 2 | -- | |||||||||||||||||||||||||
| Merger and branding related expense | 4,599 | 6,846 | 6,510 | 5,985 | 9,314 | 23,940 | 22,534 | ||||||||||||||||||||||||||
| Pre-tax, pre-provision operating earnings (non-GAAP) | $ | 36,773 | $ | 36,700 | $ | 35,905 | $ | 32,582 | $ | 30,490 | $ | 141,960 | $ | 98,995 | 43.4 | % | |||||||||||||||||
| Operating Return of Average Assets (3) | |||||||||||||||||||||||||||||||||
| Operating return on average assets (non-GAAP) | 1.23 | % | 1.21 | % | 1.12 | % | 1.06 | % | 1.00 | % | 1.15 | % | 1.02 | % | |||||||||||||||||||
| Effect to adjust for securities gains (losses) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Effect to adjust for merger and branding related expenses | -0.16 | % | -0.25 | % | -0.21 | % | -0.20 | % | -0.30 | % | -0.20 | % | -0.25 | % | |||||||||||||||||||
| Return on average assets (GAAP) | 1.07 | % | 0.96 | % | 0.91 | % | 0.86 | % | 0.70 | % | 0.95 | % | 0.77 | % | |||||||||||||||||||
| Operating Return of Average Common Equity (3) | |||||||||||||||||||||||||||||||||
| Operating return on average equity (non-GAAP) | 9.93 | % | 9.99 | % | 9.43 | % | 8.61 | % | 8.38 | % | 9.51 | % | 9.26 | % | |||||||||||||||||||
| Effect to adjust for securities gains (losses) | 0.00 | % | -0.03 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Effect to adjust for merger and branding related expenses | -1.30 | % | -1.97 | % | -1.82 | % | -1.72 | % | -2.66 | % | -1.71 | % | -2.27 | % | |||||||||||||||||||
| Return on average common equity (GAAP) | 8.63 | % | 7.99 | % | 7.63 | % | 6.89 | % | 5.72 | % | 7.80 | % | 6.99 | % | |||||||||||||||||||
| Operating Return of Average Equity (3) | |||||||||||||||||||||||||||||||||
| Operating return on average equity (non-GAAP) | 9.93 | % | 9.99 | % | 9.43 | % | 8.51 | % | 8.16 | % | 9.47 | % | 9.08 | % | |||||||||||||||||||
| Effect to adjust for securities gains (losses) | 0.00 | % | -0.03 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Effect to adjust for merger and branding related expenses | -1.30 | % | -1.97 | % | -1.82 | % | -1.61 | % | -2.49 | % | -1.68 | % | -2.18 | % | |||||||||||||||||||
| Return on average equity (GAAP) | 8.63 | % | 7.99 | % | 7.63 | % | 6.90 | % | 5.67 | % | 7.79 | % | 6.90 | % | |||||||||||||||||||
| Return on Average Common Tangible Equity | |||||||||||||||||||||||||||||||||
| Return on average common tangible equity (non-GAAP) | 14.77 | % | 13.97 | % | 13.62 | % | 12.59 | % | 10.90 | % | 13.77 | % | 11.54 | % | |||||||||||||||||||
| Effect to adjust for intangible assets | -6.14 | % | -5.98 | % | -5.99 | % | -5.70 | % | -5.18 | % | -5.97 | % | -4.55 | % | |||||||||||||||||||
| Return on average common equity (GAAP) | 8.63 | % | 7.99 | % | 7.63 | % | 6.89 | % | 5.72 | % | 7.80 | % | 6.99 | % | |||||||||||||||||||
| Operating Return on Average Common Tangible Equity | |||||||||||||||||||||||||||||||||
| Operating return on average common tangible equity (non-GAAP) | 16.85 | % | 17.23 | % | 16.59 | % | 15.47 | % | 15.46 | % | 16.56 | % | 15.00 | % | |||||||||||||||||||
| Effect to adjust for securities gains (losses) | 0.00 | % | -0.03 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Effect to adjust for merger and branding related expenses | -1.29 | % | -1.98 | % | -1.82 | % | -1.71 | % | -2.67 | % | -1.70 | % | -2.27 | % | |||||||||||||||||||
| Effect to adjust for intangible assets | -6.93 | % | -7.24 | % | -7.17 | % | -6.87 | % | -7.07 | % | -7.06 | % | -5.74 | % | |||||||||||||||||||
| Return on average common equity (GAAP) | 8.63 | % | 7.99 | % | 7.63 | % | 6.89 | % | 5.72 | % | 7.80 | % | 6.99 | % | |||||||||||||||||||
| Return on Average Tangible Equity (10) | |||||||||||||||||||||||||||||||||
| Return on average tangible equity (non-GAAP) | 14.77 | % | 13.97 | % | 13.62 | % | 12.03 | % | 10.25 | % | 13.60 | % | 10.86 | % | |||||||||||||||||||
| Effect to adjust for intangible assets | -6.14 | % | -5.98 | % | -5.99 | % | -5.13 | % | -4.58 | % | -5.81 | % | -3.96 | % | |||||||||||||||||||
| Return on average equity (GAAP) | 8.63 | % | 7.99 | % | 7.63 | % | 6.90 | % | 5.67 | % | 7.79 | % | 6.90 | % | |||||||||||||||||||
| Operating efficiency ratio excluding OREO expense | |||||||||||||||||||||||||||||||||
| Operating efficiency ratio excluding OREO expense | 62.73 | % | 61.32 | % | 63.62 | % | 64.06 | % | 66.30 | % | 62.98 | % | 64.87 | % | |||||||||||||||||||
| Effect to adjust for OREO and loan related expense | 2.34 | % | 3.19 | % | 1.77 | % | 4.07 | % | 4.13 | % | 2.79 | % | 4.16 | % | |||||||||||||||||||
| Effect to adjust for merger and branding expenses | 4.27 | % | 6.47 | % | 6.13 | % | 5.71 | % | 8.79 | % | 5.64 | % | 6.82 | % | |||||||||||||||||||
| Efficiency ratio (Tax Equivalent) | 69.34 | % | 70.98 | % | 71.52 | % | 73.84 | % | 79.22 | % | 71.41 | % | 75.85 | % | |||||||||||||||||||
| Tangible Book Value Per Common Share (10) | |||||||||||||||||||||||||||||||||
| Tangible book value per common share (non-GAAP) | $ | 25.59 | $ | 24.78 | $ | 24.12 | $ | 23.17 | $ | 22.36 | |||||||||||||||||||||||
| Effect to adjust for intangible assets | 15.19 | 15.29 | 15.38 | 15.56 | 18.36 | ||||||||||||||||||||||||||||
| Book value per common share (GAAP) | $ | 40.78 | $ | 40.07 | $ | 39.50 | $ | 38.73 | $ | 40.72 | |||||||||||||||||||||||
| Tangible Common Equity-to-Tangible Assets | |||||||||||||||||||||||||||||||||
| Tangible common equity-to-tangible assets (non-GAAP) | 8.28 | % | 7.96 | % | 7.63 | % | 7.34 | % | 7.13 | % | |||||||||||||||||||||||
| Effect to adjust for intangible assets | 4.30 | % | 4.31 | % | 4.29 | % | 4.35 | % | 4.42 | % | |||||||||||||||||||||||
| Common equity-to-assets (GAAP) | 12.58 | % | 12.27 | % | 11.92 | % | 11.69 | % | 11.55 | % | |||||||||||||||||||||||
| Tangible Equity-to-Tangible Assets (10) | |||||||||||||||||||||||||||||||||
| Tangible equity-to-tangible assets (non-GAAP) | 8.28 | % | 7.96 | % | 7.63 | % | 7.34 | % | 7.99 | % | |||||||||||||||||||||||
| Effect to adjust for intangible assets | 4.30 | % | 4.31 | % | 4.29 | % | 4.35 | % | 4.38 | % | |||||||||||||||||||||||
| Equity-to-assets (GAAP) | 12.58 | % | 12.27 | % | 11.92 | % | 11.69 | % | 12.37 | % | |||||||||||||||||||||||
| South State Corporation | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||
| YIELD ANALYSIS | Balance | Earned/Paid | Yield/Rate | Balance | Earned/Paid | Yield/Rate | ||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||
| Federal funds sold, reverse repo, and time deposits | $ | 381,491 | $ | 463 | 0.48 | % | $ | 469,382 | $ | 541 | 0.46 | % | ||||||||
| Investment securities (taxable) | 675,672 | 3,898 | 2.29 | % | 548,725 | 3,392 | 2.45 | % | ||||||||||||
| Investment securities (tax-exempt) | 143,953 | 1,126 | 3.10 | % | 150,867 | 1,191 | 3.13 | % | ||||||||||||
| Loans held for sale | 46,540 | 636 | 5.42 | % | 35,673 | 357 | 3.97 | % | ||||||||||||
| Acquired loans, net of allowance for acquired loan losses | 2,298,491 | 44,505 | 7.68 | % | 2,883,309 | 52,278 | 7.19 | % | ||||||||||||
| Non-acquired loans (1) | 3,382,795 | 34,752 | 4.08 | % | 2,793,522 | 31,007 | 4.40 | % | ||||||||||||
| Total interest-earning assets | 6,928,942 | 85,380 | 4.89 | % | 6,881,478 | 88,766 | 5.12 | % | ||||||||||||
| Noninterest-Earning Assets: | ||||||||||||||||||||
| Cash and due from banks | 145,225 | 160,164 | ||||||||||||||||||
| Other assets | 852,523 | 972,372 | ||||||||||||||||||
| Allowance for non-acquired loan losses | (34,781 | ) | (36,410 | ) | ||||||||||||||||
| Total noninterest-earning assets | 962,967 | 1,096,126 | ||||||||||||||||||
| Total Assets | $ | 7,891,909 | $ | 7,977,604 | ||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||
| Transaction and money market accounts | $ | 2,911,247 | $ | 765 | 0.10 | % | $ | 2,860,770 | $ | 888 | 0.12 | % | ||||||||
| Savings deposits | 658,664 | 119 | 0.07 | % | 647,969 | 120 | 0.07 | % | ||||||||||||
| Certificates and other time deposits | 1,268,408 | 1,362 | 0.43 | % | 1,590,114 | 1,748 | 0.44 | % | ||||||||||||
| Federal funds purchased and repurchase agreements | 238,842 | 80 | 0.13 | % | 229,382 | 82 | 0.14 | % | ||||||||||||
| Other borrowings | 101,173 | 1,503 | 5.89 | % | 106,812 | 1,513 | 5.62 | % | ||||||||||||
| Total interest-bearing liabilities | 5,178,334 | 3,829 | 0.29 | % | 5,435,047 | 4,351 | 0.32 | % | ||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||
| Demand deposits | 1,678,589 | 1,510,734 | ||||||||||||||||||
| Other liabilities | 58,590 | 52,488 | ||||||||||||||||||
| Total noninterest-bearing liabilities ("Non-IBL") | 1,737,179 | 1,563,222 | ||||||||||||||||||
| Shareholders' equity | 976,396 | 979,335 | ||||||||||||||||||
| Total Non-IBL and shareholders' equity | 2,713,575 | 2,542,557 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,891,909 | $ | 7,977,604 | ||||||||||||||||
| Net interest income and margin (NON-TAX EQUIV.) | $ | 81,551 | 4.67 | % | $ | 84,415 | 4.87 | % | ||||||||||||
| Net interest margin (TAX EQUIVALENT) | 4.72 | % | 4.91 | % | ||||||||||||||||
| South State Corporation | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Twelve Months Ended | ||||||||||||||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||
| YIELD ANALYSIS | Balance | Earned/Paid | Yield/Rate | Balance | Earned/Paid | Yield/Rate | ||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||
| Federal funds sold, reverse repo, and time deposits | $ | 364,076 | $ | 1,793 | 0.49 | % | $ | 392,915 | $ | 1,906 | 0.49 | % | ||||||||
| Investment securities (taxable) | 667,033 | 15,758 | 2.36 | % | 458,344 | 11,073 | 2.42 | % | ||||||||||||
| Investment securities (tax-exempt) | 146,700 | 4,589 | 3.13 | % | 151,908 | 4,773 | 3.14 | % | ||||||||||||
| Loans held for sale | 38,745 | 1,766 | 4.56 | % | 45,015 | 1,620 | 3.60 | % | ||||||||||||
| Acquired loans, net of allowance for acquired loan losses | 2,500,882 | 186,655 | 7.46 | % | 1,813,425 | 148,597 | 8.19 | % | ||||||||||||
| Non-acquired loans (1) | 3,151,482 | 131,461 | 4.17 | % | 2,677,450 | 118,379 | 4.42 | % | ||||||||||||
| Total interest-earning assets | 6,868,918 | 342,022 | 4.98 | % | 5,539,057 | 286,348 | 5.17 | % | ||||||||||||
| Noninterest-Earning Assets: | ||||||||||||||||||||
| Cash and due from banks | 193,993 | 125,324 | ||||||||||||||||||
| Other assets | 910,560 | 730,784 | ||||||||||||||||||
| Allowance for non-acquired loan losses | (35,034 | ) | (40,192 | ) | ||||||||||||||||
| Total noninterest-earning assets | 1,069,519 | 815,916 | ||||||||||||||||||
| Total Assets | $ | 7,938,437 | $ | 6,354,973 | ||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||
| Transaction and money market accounts | $ | 2,894,137 | $ | 3,295 | 0.11 | % | $ | 2,280,055 | $ | 2,897 | 0.13 | % | ||||||||
| Savings deposits | 663,659 | 488 | 0.07 | % | 479,367 | 398 | 0.08 | % | ||||||||||||
| Certificates and other time deposits | 1,381,049 | 5,518 | 0.40 | % | 1,277,772 | 5,194 | 0.41 | % | ||||||||||||
| Federal funds purchased and repurchase agreements | 253,948 | 357 | 0.14 | % | 274,080 | 426 | 0.16 | % | ||||||||||||
| Other borrowings | 101,195 | 6,004 | 5.93 | % | 76,421 | 4,072 | 5.33 | % | ||||||||||||
| Total interest-bearing liabilities | 5,293,988 | 15,662 | 0.30 | % | 4,387,695 | 12,987 | 0.30 | % | ||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||
| Demand deposits | 1,604,421 | 1,215,052 | ||||||||||||||||||
| Other liabilities | 71,865 | 39,336 | ||||||||||||||||||
| Total noninterest-bearing liabilities ("Non-IBL") | 1,676,286 | 1,254,388 | ||||||||||||||||||
| Shareholders' equity | 968,163 | 712,890 | ||||||||||||||||||
| Total Non-IBL and shareholders' equity | 2,644,449 | 1,967,278 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,938,437 | $ | 6,354,973 | ||||||||||||||||
| Net interest income and margin (NON-TAX EQUIV.) | $ | 326,360 | 4.75 | % | $ | 273,361 | 4.94 | % | ||||||||||||
| Net interest margin (TAX EQUIVALENT) | 4.80 | % | 5.00 | % | ||||||||||||||||
| South State Corporation | ||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
| Fourth | ||||||||||||||||||||||||||||||||||
| Three Months Ended | Quarter | Twelve Months Ended | YTD | |||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 2014 - 2013 | December 31, | 2014 - 2013 | |||||||||||||||||||||||||||
| NONINTEREST INCOME & EXPENSE | 2014 | 2014 | 2014 | 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | $ | 8,986 | $ | 9,126 | $ | 9,144 | $ | 8,988 | $ | 10,097 | -11.0 | % | 36,244 | 30,561 | 18.6 | % | ||||||||||||||||||
| Bankcard services income | 7,320 | 7,489 | 7,741 | 7,084 | 7,230 | 1.2 | % | 29,634 | 21,844 | 35.7 | % | |||||||||||||||||||||||
| Mortgage banking income | 4,072 | 4,124 | 4,683 | 3,291 | 2,520 | 61.6 | % | 16,170 | 9,149 | 76.7 | % | |||||||||||||||||||||||
| Trust and investment services income | 4,499 | 4,490 | 4,812 | 4,543 | 4,315 | 4.3 | % | 18,344 | 12,661 | 44.9 | % | |||||||||||||||||||||||
| Securities gains, net (8) | -- | (90 | ) | 88 | -- | -- | (2 | ) | -- | |||||||||||||||||||||||||
| Amortization of FDIC indemnification asset | (4,177 | ) | (4,825 | ) | (5,815 | ) | (7,078 | ) | (7,429 | ) | 43.8 | % | (21,895 | ) | (29,535 | ) | -25.9 | % | ||||||||||||||||
| Other | 4,599 | 4,139 | 3,746 | 3,717 | 3,916 | 17.4 | % | 16,201 | 9,040 | 79.2 | % | |||||||||||||||||||||||
| Total noninterest income | $ | 25,299 | $ | 24,453 | $ | 24,399 | $ | 20,545 | $ | 20,649 | 22.5 | % | $ | 94,696 | $ | 53,720 | 76.3 | % | ||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 39,034 | $ | 40,029 | $ | 40,276 | $ | 39,093 | $ | 40,634 | -3.9 | % | $ | 158,432 | $ | 122,096 | 29.8 | % | ||||||||||||||||
| Information services expense | 3,724 | 3,417 | 4,279 | 4,424 | 4,381 | -15.0 | % | 15,844 | 14,469 | 9.5 | % | |||||||||||||||||||||||
| OREO expense and loan related | 2,520 | 3,374 | 1,875 | 4,064 | 4,344 | -42.0 | % | 11,833 | 13,727 | -13.8 | % | |||||||||||||||||||||||
| Net occupancy expense | 5,701 | 5,387 | 5,731 | 5,640 | 5,894 | -3.3 | % | 22,459 | 17,590 | 27.7 | % | |||||||||||||||||||||||
| Furniture and equipment expense | 3,100 | 3,166 | 3,264 | 3,741 | 3,816 | -18.8 | % | 13,271 | 12,111 | 9.6 | % | |||||||||||||||||||||||
| Merger and branding related expense | 4,599 | 6,846 | 6,510 | 5,985 | 9,314 | -50.6 | % | 23,940 | 22,534 | 6.2 | % | |||||||||||||||||||||||
| Business development and staff related | 1,736 | 1,482 | 1,747 | 1,578 | 1,778 | -2.4 | % | 6,543 | 5,519 | 18.6 | % | |||||||||||||||||||||||
| FDIC assessment and other regulatory charges | 1,321 | 1,268 | 1,267 | 1,576 | 1,193 | 10.7 | % | 5,432 | 5,034 | 7.9 | % | |||||||||||||||||||||||
| Supplies, printing and postage expense | 2,074 | 1,681 | 1,599 | 1,583 | 1,551 | 33.7 | % | 6,937 | 4,891 | 41.8 | % | |||||||||||||||||||||||
| Bankcard expense | 2,043 | 2,141 | 2,187 | 2,192 | 2,287 | -10.7 | % | 8,563 | 6,550 | 30.7 | % | |||||||||||||||||||||||
| Amortization of intangibles | 2,052 | 2,080 | 2,084 | 2,104 | 2,287 | -10.3 | % | 8,320 | 6,081 | 36.8 | % | |||||||||||||||||||||||
| Professional fees | 1,459 | 1,068 | 1,190 | 1,243 | 1,430 | 2.0 | % | 4,960 | 4,210 | 17.8 | % | |||||||||||||||||||||||
| Advertising and marketing | 1,172 | 837 | 1,054 | 1,093 | 1,729 | -32.2 | % | 4,156 | 4,532 | -8.3 | % | |||||||||||||||||||||||
| Other | 4,141 | 2,282 | 2,826 | 3,099 | 3,250 | 27.4 | % | 12,348 | 11,276 | 9.5 | % | |||||||||||||||||||||||
| Total noninterest expense | $ | 74,676 | $ | 75,058 | $ | 75,889 | $ | 77,415 | $ | 83,888 | -11.0 | % | $ | 303,038 | $ | 250,620 | 20.9 | % | ||||||||||||||||
| Notes: | ||
| (A) Includes noncash loan interest income related the discount on acquired performing loans on $2.3 million; $2.4 million; $2.2 million; $3.0 million; and $3.5 million, respectively during the five quarters above, and for the year ended the amounts were $9.9 million and $6.7 million. | ||
| (1) Loan data excludes mortgage loans held for sale. | ||
| (2) The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period. | ||
| (3) Operating earnings, operating return on average assets, and operating return on average equity are non-GAAP measures and exclude the after-tax effect of gains on acquisitions, gains or losses on sales of securities, OTTI, and merger and branding related expense. Management believes that non-GAAP operating 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. Operating earnings and the related operating return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger and branding related expense of $4.6 million, $6.8 million, $6.5 million, $6.0 million, and $9.3 million, for the quarters ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013, respectively; and (b) securities gains (losses) of ($90,000) and $88,000 for the quarters ended September 30, 2014 and June 30, 2014. | ||
| (4) Repossessed assets includes OREO and other nonperforming assets. | ||
| (5) Calculated by dividing total non-acquired NPAs by total assets. | ||
| (6) Pre-tax, pre-provision operating earnings is a non-GAAP measure and excludes the effect of the provision for loan losses, the provision for income taxes, the gains on acquisitions, gains or losses on sales of securities, OTTI, and merger and branding related expense. Management believes that non-GAAP pre-tax, pre-provision operating earnings provides 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. | ||
| (7) Acquired credit impaired loans are not included in non-performing assets because the accretion method is being used for these acquired loan pools. | ||
| (8) If an other-than-temporary impairment charge was recorded during the quarter, the amount would be reflected in the "securities gains (losses), net" line item. | ||
| (9) December 31, 2014 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. All ratios are rounded down to one decimal point. | ||
| (10) 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. | ||
| (11) Classified asset data excludes acquired assets. | ||
| (12) The allowance for acquired loan losses is reduced for any loan removals, which occur when a loan has been fully paid off, fully charged off, sold or transferred to OREO. | ||
| SOUTH STATE CORPORATION AND SUBSIDIARY | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in thousands, except par value) | ||||||||
| December 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents: | ||||||||
| Cash and due from banks | $ | 229,901 | $ | 212,473 | ||||
| Interest-bearing deposits with banks | 7,456 | 4,770 | ||||||
| Federal funds sold and securities | ||||||||
| purchased under agreements to resell | 180,512 | 262,218 | ||||||
| Total cash and cash equivalents | 417,869 | 479,461 | ||||||
| Investment securities: | ||||||||
| Securities held to maturity | ||||||||
| (fair value of $10,233, and $12,891, respectively) | 9,659 | 12,426 | ||||||
| Securities available for sale, at fair value | 806,766 | 786,791 | ||||||
| Other investments | 10,518 | 13,386 | ||||||
| Total investment securities | 826,943 | 812,603 | ||||||
| Loans held for sale | 60,270 | 30,586 | ||||||
| Loans: | ||||||||
| Acquired credit impaired (covered of $182,464, and $289,123, respectively; non-covered of $736,938, and $931,515, respectively), net of allowance for loan losses | ||||||||
| 919,402 | 1,220,638 | |||||||
| Acquired non-credit impaired (covered of $9,376, and $7,824, respectively; non-covered of $1,318,623, and $1,593,111, respectively) | ||||||||
| 1,327,999 | 1,600,935 | |||||||
| Non-acquired | 3,467,826 | 2,865,216 | ||||||
| Less allowance for non-acquired loan losses | (34,539 | ) | (34,331 | ) | ||||
| Loans, net | 5,680,688 | 5,652,458 | ||||||
| Goodwill | 317,688 | 317,688 | ||||||
| Premises and equipment, net | 171,772 | 188,114 | ||||||
| Bank owned life insurance | 99,140 | 97,197 | ||||||
| FDIC receivable for loss share agreements | 22,161 | 86,447 | ||||||
| Deferred tax asset | 42,692 | 72,914 | ||||||
| Other real estate owned (covered of $16,227, and $27,520, respectively; | ||||||||
| non-covered of $26,499, and $37,398, respectively) | 42,726 | 64,918 | ||||||
| Core deposit and other intangibles | 49,239 | 59,908 | ||||||
| Mortgage servicing rights | 21,601 | 20,729 | ||||||
| Other assets | 73,438 | 48,475 | ||||||
| Total assets | $ | 7,826,227 | $ | 7,931,498 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | 1,639,953 | $ | 1,486,445 | ||||
| Interest-bearing | 4,821,092 | 5,067,699 | ||||||
| Total deposits | 6,461,045 | 6,554,144 | ||||||
| Federal funds purchased and securities | ||||||||
| sold under agreements to repurchase | 221,541 | 211,401 | ||||||
| Other borrowings | 101,210 | 102,060 | ||||||
| Other liabilities | 57,511 | 82,424 | ||||||
| Total liabilities | 6,841,307 | 6,950,029 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock - $.01 par value; authorized 10,000,000 shares; 0, and 65,000 shares issued and outstanding, respectively | ||||||||
| -- | 1 | |||||||
| Common stock - $2.50 par value; authorized 40,000,000 shares; 24,150,702, and 24,104,124 shares issued and outstanding, respectively | ||||||||
| 60,377 | 60,260 | |||||||
| Surplus | 701,764 | 762,354 | ||||||
| Retained earnings | 223,156 | 168,577 | ||||||
| Accumulated other comprehensive (loss) | (377 | ) | (9,723 | ) | ||||
| Total shareholders' equity | 984,920 | 981,469 | ||||||
| Total liabilities and shareholders' equity | $ | 7,826,227 | $ | 7,931,498 | ||||
| SOUTH STATE CORPORATION AND SUBSIDIARY | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Interest income: | ||||||||||||||||
| Loans, including fees | $ | 79,893 | $ | 83,642 | $ | 319,882 | $ | 268,596 | ||||||||
| Investment securities: | ||||||||||||||||
| Taxable | 3,898 | 3,392 | 15,758 | 11,073 | ||||||||||||
| Tax-exempt | 1,126 | 1,191 | 4,589 | 4,773 | ||||||||||||
| Federal funds sold and securities | ||||||||||||||||
| purchased under agreements to resell | 463 | 541 | 1,793 | 1,906 | ||||||||||||
| Total interest income | 85,380 | 88,766 | 342,022 | 286,348 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 2,246 | 2,756 | 9,301 | 8,489 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | ||||||||||||||||
| 80 | 82 | 357 | 426 | |||||||||||||
| Other borrowings | 1,503 | 1,513 | 6,004 | 4,072 | ||||||||||||
| Total interest expense | 3,829 | 4,351 | 15,662 | 12,987 | ||||||||||||
| Net interest income | 81,551 | 84,415 | 326,360 | 273,361 | ||||||||||||
| Provision for loan losses | 1,481 | (12 | ) | 6,590 | 1,886 | |||||||||||
| Net interest income after provision for loan losses | 80,070 | 84,427 | 319,770 | 271,475 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 8,986 | 10,097 | 36,244 | 30,561 | ||||||||||||
| Bankcard services income | 7,320 | 7,230 | 29,634 | 21,844 | ||||||||||||
| Mortgage banking income | 4,072 | 2,520 | 16,170 | 9,149 | ||||||||||||
| Trust and investment services income | 4,499 | 4,315 | 18,344 | 12,661 | ||||||||||||
| Securities gains (losses), net | -- | -- | (2 | ) | -- | |||||||||||
| Amortization of FDIC indemnification asset | (4,177 | ) | (7,429 | ) | (21,895 | ) | (29,535 | ) | ||||||||
| Other | 4,599 | 3,916 | 16,201 | 9,040 | ||||||||||||
| Total noninterest income | 25,299 | 20,649 | 94,696 | 53,720 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 39,034 | 40,634 | 158,432 | 122,096 | ||||||||||||
| Information services expense | 3,724 | 4,381 | 15,844 | 14,470 | ||||||||||||
| OREO expense and loan related | 2,520 | 4,344 | 11,833 | 13,727 | ||||||||||||
| Net occupancy expense | 5,701 | 5,894 | 22,459 | 17,590 | ||||||||||||
| Furniture and equipment expense | 3,100 | 3,816 | 13,271 | 12,112 | ||||||||||||
| Merger and branding related expense | 4,599 | 9,314 | 23,940 | 22,534 | ||||||||||||
| FDIC assessment and other regulatory charges | 1,321 | 1,193 | 5,432 | 5,034 | ||||||||||||
| Supplies, printing and postage expense | 2,074 | 1,551 | 6,937 | 4,891 | ||||||||||||
| Bankcard expense | 2,043 | 2,287 | 8,563 | 6,550 | ||||||||||||
| Amortization of intangibles | 2,052 | 2,287 | 8,320 | 6,081 | ||||||||||||
| Professional fees | 1,459 | 1,430 | 4,960 | 4,210 | ||||||||||||
| Advertising and marketing | 1,172 | 1,729 | 4,156 | 4,532 | ||||||||||||
| Other | 5,877 | 5,028 | 18,891 | 16,794 | ||||||||||||
| Total noninterest expense | 74,676 | 83,888 | 303,038 | 250,621 | ||||||||||||
| Earnings: | ||||||||||||||||
| Income before provision for income taxes | 30,693 | 21,188 | 111,428 | 74,574 | ||||||||||||
| Provision for income taxes | 9,445 | 7,204 | 35,991 | 25,355 | ||||||||||||
| Net income | 21,248 | 13,984 | 75,437 | 49,219 | ||||||||||||
| Preferred stock dividends | -- | 812 | 1,073 | 1,354 | ||||||||||||
| Accretion on preferred stock discount | -- | -- | -- | -- | ||||||||||||
| Net income available to common shareholders | $ | 21,248 | $ | 13,172 | $ | 74,364 | $ | 47,865 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.89 | $ | 0.55 | $ | 3.11 | $ | 2.41 | ||||||||
| Diluted | $ | 0.88 | $ | 0.55 | 3.08 | 2.38 | ||||||||||
| Dividends per common share | $ | 0.22 | $ | 0.19 | $ | 0.82 | $ | 0.74 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 23,912 | 23,826 | 23,897 | 19,866 | ||||||||||||
| Diluted | 24,189 | 24,079 | 24,154 | 20,077 | ||||||||||||
