South State Corporation (NASDAQ: SSB) today released its
unaudited results of operations and other financial information for
the three-month period ended March 31, 2018. Highlights for the
first quarter of 2018 include the following:
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- First quarter 2018 financial
results:
- Net income was $42.3 million, compared
with $2.4 million in the fourth quarter of 2017, an increase of
$39.9 million
- Diluted EPS of $1.15, compared with
$0.08, an increase of $1.07
- Adjusted net income (non-GAAP) was
$51.2 million, compared to $41.4 million, a 23.8% increase, or $9.9
million
- Adjusted diluted EPS (non-GAAP) of
$1.39, compared to $1.30, a 6.9% increase
- During the first quarter of 2018, there
were three items driven primarily by the Tax Cuts and Jobs Act (Tax
Act) which was signed into law on December 22, 2017: (1) paid $2.8
million in bonuses to all employees; (2) reduced income tax
provision by approximately $6.8 million; and (3) increased the cash
dividend for shareholders to $0.34 per share, up $0.01 per share
over last quarter.
- Performance ratios first quarter
2018 compared to fourth quarter 2017
- Return on average assets totaled 1.19%
compared to 0.08%
- Adjusted return on average assets
(non-GAAP) was 1.44% compared to 1.33%
- Return on average equity totaled 7.41%
compared to 0.51%
- Return on average tangible equity
(non-GAAP) was 14.69% compared to 1.59%
- Adjusted return on average tangible
equity (non-GAAP) increased to 17.60% from 15.83%
- Efficiency ratio was 67.2% down from
68.5%, due primarily to lower merger costs associated with the Park
Sterling Corporation (“Park Sterling” or “PSTB”) merger
- Adjusted efficiency ratio (non-GAAP)
was 60.7% up from 57.0% (excluding merger-related and conversion
expenses and securities gains, net)
- Balance sheet linked quarter
- Cash and cash equivalents increased by
$266.9 million
- Net loan growth for the quarter totaled
$15.3 million, or 0.58% annualized, as the overall loan portfolio
continues to remix
- Noninterest bearing deposits increased
by $73.4 million, or 9.8% annualized increase; and interest bearing
deposits increased by $56.9 million, or 2.7% annualized
- Federal funds purchased and repurchase
agreements increased $70.7 million to $357.6 million during the
quarter
- Shareholders’ equity increased $13.7
million, primarily from net income, net of the dividends paid of
$30.2 million offset by accumulated other comprehensive loss
(“AOCI”) of $17.0 million, net of tax, primarily within the
available for sale securities portfolio
- Total equity to total assets decreased
to 15.81% from 15.96%
- Tangible equity to tangible assets
(non-GAAP) decreased to 9.20% from 9.23%
- Asset quality
- Nonperforming assets (NPAs) decreased
by $2.0 million, or 5.7%, to $34.0 million at March 31, 2018 from
the level at December 31, 2017, and was down $4.6 million, or 12.0%
from March 31, 2017
- NPAs to total assets improved to 0.23%
at March 31, 2018, from 0.25% at December 31, 2017 and from 0.35%
at March 31, 2017
- Net charge offs on non-acquired loans
were 0.02% annualized, or $367,000, compared to $265,000, or 0.02%
annualized in the fourth quarter of 2017. Compared to the first
quarter of 2017, net charge offs totaled $628,000, or 0.05%
annualized.
- Net charge offs on acquired non-credit
impaired loans were 0.02% annualized, or $169,000, compared to
0.07% annualized, or $402,000 in the fourth quarter of 2017. In the
first quarter of 2017, net charge-offs were 0.08% annualized, or
$326,000.
- Coverage ratio of ALLL on non-acquired
non-performing loans was 316% at March 31, 2018 compared to 293% at
December 31, 2017 and 295% at March 31, 2017.
Quarterly Cash Dividend
The Board of Directors of South State Corporation declared a
quarterly cash dividend on April 19, 2018, of $0.34 per share
payable on its common stock. This per share amount is higher by
$0.01 per share, or 3.0% compared to last quarter and the same
quarter one year ago. The dividend will be payable on May 18, 2018
to shareholders of record as of May 11, 2018.
Durbin Impact
Effective July 1, 2018, the cap on interchange fees under the
Durbin amendment will be in place for the Company. We continue to
refine this estimate of lower interchange income, and expect this
to total approximately $8.5 million (pre-tax) during the last half
of 2018.
First Quarter 2018 Financial
Performance
Three Months Ended (Dollars in thousands, except per
share data)
Mar. 31, Dec. 31, Sept. 30,
June 30, Mar. 31, INCOME STATEMENT
2018 2017 2017
2017 2017
Interest income Loans, including fees (8)
$
127,041 $ 108,319 $ 95,864 $ 93,600 $ 91,752
Investment securities, federal funds sold
and securities purchased under agreements to resell
11,007 9,505 8,547
9,179 9,234 Total interest income
138,048 117,824 104,411 102,779 100,986
Interest
expense Deposits
6,913 4,220 2,974 2,661 2,497
Federal funds purchased, securities sold
under agreements to repurchase, and other borrowings
2,162 1,330 1,118
1,087 1,127 Total interest expense
9,075 5,550 4,092
3,748 3,624
Net interest income
128,973 112,274 100,319 99,031 97,362 Provision for loan
losses
2,454 3,808 2,062
2,313 3,707
Net interest
income after provision for loan losses 126,519
108,466 98,257 96,718
93,655 Noninterest income
43,518
39,098 36,040 37,574
36,435 Pre-tax operating expense
105,130 86,981 80,023 82,232 83,699 Branch
consolid./acquisition and merger expense
11,296 17,621 1,551
4,307 21,024 Total noninterest expense
116,426
104,602 81,574 86,539
104,723
Income before provision for income
taxes 53,611 42,962 52,723 47,753 25,367 Provision for
income taxes, includes deferred tax revaluation
11,285 40,541 17,677
15,930 7,103
Net income $
42,326 $ 2,421 $ 35,046 $ 31,823
$ 18,264
Adjusted net income (non-GAAP) (3)
Net income (GAAP) $ 42,326 $ 2,421 $ 35,046 $
31,823 $ 18,264 Securities gains, net of tax
-- (22 ) (349 )
(73 ) -- Provision for income taxes, deferred tax revaluation
-- 26,558 -- -- -- Branch consolid./acquisition and merger
expense, net of tax
8,918 12,431
1,031 2,870 15,137
Adjusted net income (non-GAAP) $ 51,244
$ 41,388 $ 35,728 $ 34,620 $ 33,401
Basic earnings per common share
$ 1.15 $ 0.08
$ 1.20 $ 1.09 $ 0.63 Diluted earnings per common share
$
1.15 $ 0.08 $ 1.19 $ 1.08 $ 0.63 Adjusted net income per
common share - Basic (non-GAAP) (3)
$ 1.40 $ 1.31 $
1.23 $ 1.19 $ 1.16 Adjusted net income per common share - Diluted
(non-GAAP) (3)
$ 1.39 $ 1.30 $ 1.22 $ 1.18 $ 1.15
Dividends per common share
$ 0.33 $ 0.33 $ 0.33 $
0.33 $ 0.33 Basic weighted-average common shares outstanding
36,646,198 31,654,947 29,114,574 29,094,908 28,891,669
Diluted weighted-average common shares outstanding
36,899,068 31,905,505 29,385,041 29,364,916 29,158,523
Effective tax rate
21.05 % 94.36 % 33.53 % 33.36 %
28.00 %
The Company reported consolidated net income of $42.3 million,
or $1.15 per diluted common share for the three-months ended March
31, 2018, a $39.9 million increase from the fourth quarter of 2017.
Interest income was up $20.2 million primarily as a result of an
increase in non-acquired loan interest income of $2.6 million
during the first quarter, and from an increase of $16.1 million
from acquired loan interest income due to a full quarter of
acquired loans from PSTB. In addition, investment securities income
increased by $1.6 million due primarily to the addition of the PSTB
securities portfolio held for the full quarter. Interest expense
increased by $3.5 million, with $1.5 million increase from
transaction and money market accounts, $1.1 million attributable to
certificate and other time deposits and $702,000 increase in other
borrowings. These increases in interest expense were related to the
merger with PSTB and increases in interest rates within most
categories. The Company’s cost of funds was 0.41% for the first
quarter of 2018, an increase of 0.12% from the fourth quarter of
2017. Compared to the first quarter of 2017, cost of funds
increased by 0.19% which is primarily the result of the addition of
Park Sterling funding cost which historically was higher than
legacy South State’s. The total provision for loan losses decreased
$1.4 million compared to the fourth quarter of 2017. Valuation
allowance (impairment) related to acquired loans was $1.1 million
lower than in the fourth quarter of 2017, as multiple pools had
releases and improved cash flows, offset by certain valuation
impairments recognized on acquired credit impaired loan pools. The
provision for loan losses related to acquired non-credit impaired
loans was lower by $233,000, compared to the fourth quarter of
2017. The provision for loan losses on non-acquired loans was flat
compared to the fourth quarter of 2017. Noninterest income
increased by $4.4 million within all categories due primarily to
having Park Sterling for the full quarter. Salaries and employee
benefits included $2.8 million in bonuses paid to all employees
during the quarter in response to the Tax Act. Most noninterest
expense categories were higher for the first quarter of 2018 due to
the full quarter impact of Park Sterling operations.
Income Tax Expense
During the first quarter of 2018, the Company’s effective income
tax rate was 21.05%, or $11.3 million, reflective of the Tax Act
signed in December 2017. The effective tax rate in the fourth
quarter of 2017 was 32.55%, excluding the charge taken to revalue
all deferred tax items. This reduced rate allowed us to earn back
approximately $6.8 million of the $26.6 million charge recorded in
the fourth quarter of 2017. We currently expect to earn back this
charge in 2018.
“We are pleased with the progress in the first quarter of 2018
in all areas of the company. We successfully completed the Park
Sterling system conversion this past weekend and are excited to
build upon this merger,” said Robert R. Hill Jr., CEO of South
State Corporation. “South State is very well positioned to leverage
the talent of the combined companies and capitalize on growth
opportunities.”
Balance Sheet and Capital
Ending Balance Mar. 31, Dec. 31,
Sept. 30, June 30, Mar. 31, BALANCE
SHEET 2018 2017
2017 2017
2017 Assets Cash and cash equivalents
$
644,504 $ 377,627 $ 403,934 $ 431,890
$ 663,126 Investment securities: Securities held to
maturity
1,274 2,529 3,678 4,166 6,095 Securities available
for sale, at fair value
1,640,837 1,648,193 1,319,454
1,340,427 1,379,788 Other investments
23,479
23,047 13,664 14,301
14,726 Total investment securities
1,665,590 1,673,769 1,336,796
1,358,894 1,400,609 Loans held
for sale
42,690 70,890
46,321 65,995 46,988 Loans:
Acquired credit impaired
597,274 618,803 578,863 602,481
627,340 Acquired non-credit impaired
3,274,938 3,507,907
1,455,555 1,585,981 1,715,642 Non-acquired
6,762,512
6,492,155 6,230,327 5,992,393 5,564,307 Less allowance for
non-acquired loan losses
(45,203 )
(43,448 ) (41,541 ) (40,149 ) (38,449 ) Loans,
net
10,589,521 10,575,417
8,223,204 8,140,706 7,868,840
Other real estate owned ("OREO")
11,073 11,203 13,527 14,430
20,007 Premises and equipment, net
253,605 255,565 198,146
201,539 203,505 Bank owned life insurance
226,222 225,132
151,402 150,476 149,562 Deferred tax asset
46,736 45,902
41,664 39,921 43,075 Mortgage servicing rights
34,196 31,119
29,937 29,930 30,063 Core deposit and other intangibles
70,376 73,789 50,472 52,966 55,461 Goodwill
999,592
999,586 597,236 595,817 595,711 Other assets
105,004
126,590 76,471 71,877
73,123 Total assets
$ 14,689,109
$ 14,466,589 $ 11,169,110 $ 11,154,441
$
11,150,070
Liabilities and Shareholders' Equity Deposits:
Noninterest-bearing
$ 3,120,818 $ 3,047,432 $
2,505,570 $ 2,635,147 $ 2,599,111 Interest-bearing
8,542,280 8,485,334 6,556,451
6,396,507 6,434,327 Total
deposits
11,663,098 11,532,766
9,062,021 9,031,654 9,033,438
Federal funds purchased and securities
sold under agreements to repurchase
357,574 286,857 291,099 334,018 352,431 Other borrowings
215,589 216,385 83,307 98,147 107,988 Other liabilities
130,269 121,661 99,858
85,137 76,313 Total liabilities
12,366,530 12,157,669
9,536,285 9,548,956 9,570,170
Shareholders' equity: Preferred stock - $.01 par value;
authorized 10,000,000 shares
-- -- -- -- -- Common stock -
$2.50 par value; authorized 80,000,000 shares
91,958 91,899
73,168 73,148 73,077 Surplus
1,807,989 1,807,601 1,136,352
1,134,328 1,132,173 Retained earnings
452,982 419,847
427,093 401,706 379,534 Accumulated other comprehensive loss
(30,350 ) (10,427 ) (3,788 )
(3,697 ) (4,884 ) Total shareholders' equity
2,322,579 2,308,920 1,632,825
1,605,485 1,579,900 Total
liabilities and shareholders' equity
$ 14,689,109
$ 14,466,589 $ 11,169,110 $ 11,154,441
$
11,150,070
Common shares issued and outstanding
36,783,438 36,759,656 29,267,369 29,259,264 29,230,734
At March 31, 2018, the Company’s total assets were $14.7
billion, an increase of $222.5 million from December 31, 2017, and
an increase of $3.5 billion, or 31.7% from March 31, 2017. During
the first quarter of 2018, cash and cash equivalents increased by
$266.9 million, as acquired loans declined by $254.5 million,
offset by $270.4 million increase in non-acquired loans, or 16.9%.
Total deposits increased by $130.3 million, or 4.6% annualized, and
federal funds purchased and repurchase agreements increased by
$70.7 million. Acquired loans declined by approximately $254.5
million during the first quarter of 2018. The decrease in acquired
loans related to Park Sterling totaled $117.8 million.
The Company’s book value per common share increased to $63.14
per share at March 31, 2018, compared to $62.81 at December 31,
2017 and $54.05 at March 31, 2017. The increase in capital during
the first quarter of 2018 of $13.7 million was related to net
income totaling $42.3 million, partially offset by $12.1 million
dividend paid to shareholders. AOCI reduced capital by $17.0
million. Tangible book value (“TBV”) per common share increased by
$0.44 per share to $34.05 at March 31, 2018, compared to $33.61 at
December 31, 2017, and increased by $2.28 per share, or 7.2%, from
$31.77 at March 31, 2017. The quarterly increase of $0.44 per share
in tangible book value was the result of (1) earnings per share,
excluding amortization of intangibles, of $1.22, offset by the
dividend paid to shareholders of $0.33 per share; (2) a decrease in
AOCI (see above) of $0.46 per share; and (3) an increase from the
exercise of stock options and issuance of stock related to employee
stock purchase plan of $0.01 per share. During the first quarter of
2018, the Company elected to early adopt ASU 2018-02, Reporting
Comprehensive Income (Topic 220): Reclassification of Certain Tax
Effects from AOCI. This standard, as a result of the Tax Act, had
the effect of reclassifying $2.9 million of deferred taxes from
AOCI into retained earnings resulting in no effect on reported
equity or earnings of the company.
“During the first quarter of 2018, the Company’s risk-based
capital ratios improved. Total risk-based capital improved to 13.3%
and increased by more than $23.6 million in the first quarter,”
said John C. Pollok, COO and CFO. “In addition, tangible book value
increased by $0.44 per share, or 5.2% annualized, including merger
cost and the impact of the increased unrealized losses within the
available for sale securities portfolio.”
Three Months Ended
Mar. 31, Dec. 31, Sept. 30, June
30, Mar. 31, PERFORMANCE RATIOS
2018 2017 2017
2017 2017 Return on average assets
(annualized)
1.19% 0.08% 1.25% 1.15% 0.68% Adjusted return
on average assets (annualized) (non-GAAP) (3)
1.44% 1.33%
1.28% 1.25% 1.25% Return on average equity (annualized)
7.41% 0.51% 8.57% 7.98% 4.74% Adjusted return on average
equity (annualized) (non-GAAP) (3)
8.98% 8.75% 8.73% 8.69%
8.67% Return on average tangible common equity (annualized)
(non-GAAP) (7)
14.69% 1.59% 14.93% 14.16% 8.87% Adjusted
return on average tangible common equity (annualized) (non-GAAP)
(3) (7)
17.60% 15.83% 15.21% 15.34% 15.55% Efficiency ratio
(tax equivalent)
67.24% 68.50% 59.48% 62.80% 77.51% Adjusted
efficiency ratio (non-GAAP) (9)
60.72% 56.96% 58.35% 59.67%
61.95% Dividend payout ratio (2)
28.68% 399.30% 27.56%
30.33% 52.82% Book value per common share
$ 63.14 $
62.81 $ 55.79 $ 54.87 $ 54.05 Tangible common equity per common
share (non-GAAP) (7)
$ 34.05 $ 33.61 $ 33.66 $ 32.70
$ 31.77
CAPITAL RATIOS Equity-to-assets
15.81%
15.96% 14.62% 14.39% 14.17% Tangible equity-to-tangible assets
(non-GAAP) (7)
9.20% 9.23% 9.36% 9.11% 8.85% Tier 1 common
equity (6)
11.8% 11.6% 12.1% 11.9% 11.9% Tier 1 leverage (6)
10.5% 10.4% 10.3% 10.1% 10.0% Tier 1 risk-based capital (6)
12.8% 12.6% 12.9% 12.8% 12.8% Total risk-based capital (6)
13.3% 13.0% 13.5% 13.3% 13.3%
OTHER DATA
Number of branches
179 182 129 129 129 Number of employees
(full-time equivalent basis)
2,700 2,719 2,255 2,261 2,277
Asset Quality
Ending Balance Mar.
31, Dec. 31, Sept. 30, June 30,
Mar. 31, (Dollars in thousands)
2018
2017 2017
2017 2017 NONPERFORMING
ASSETS: Non-acquired Non-acquired nonperforming loans
$ 14,307 $ 14,831 $ 12,896 $ 13,499 $ 13,035
Non-acquired OREO and other nonperforming assets
2,363 2,536 6,330
4,633 5,705 Total non-acquired nonperforming
assets
16,670 17,367
19,226 18,132 18,740
Acquired Acquired nonperforming loans
8,233 9,447
6,401 5,793 4,950 Acquired OREO and other nonperforming assets
9,139 9,263 7,846
10,439 14,992 Total acquired
nonperforming assets
17,372 18,710
14,247 16,232 19,942
Total nonperforming assets
$ 34,042 $
36,077 $ 33,473 $ 34,364 $ 38,682
Three Months Ended Mar. 31, Dec. 31,
Sept. 30, June 30, Mar. 31, 2018
2017 2017
2017 2017 ASSET QUALITY
RATIOS:
Allowance for non-acquired loan losses as
a percentage of non-acquired loans (1)
0.67 % 0.67 % 0.67 % 0.67 % 0.69 %
Allowance for non-acquired loan losses as
a percentage of non-acquired nonperforming loans
315.95 % 292.95 % 322.12 % 297.42 % 294.97 %
Net charge-offs on non-acquired loans as a
percentage of average non-acquired loans (annualized) (1)
0.02 % 0.02 % 0.04 % 0.05 % 0.05 %
Net charge-offs on acquired non-credit
impaired loans as a percentage of average acquired non-credit
impaired loans (annualized) (1)
0.02 % 0.07 % 0.00 % 0.10 % 0.08 %
Total nonperforming assets as a percentage
of total assets
0.23 % 0.25 % 0.30 % 0.31 % 0.35 %
Excluding
Acquired Assets NPLs as a percentage of period end non-acquired
loans (1)
0.21 % 0.23 % 0.21 % 0.23 % 0.23 %
Total nonperforming assets as a percentage
of total non-acquired loans and repossessed assets (1) (4)
0.25 % 0.27 % 0.31 % 0.30 % 0.34 %
Total nonperforming assets as a percentage
of total assets (5)
0.11 % 0.12 % 0.17 % 0.16 % 0.17 %
Overall asset quality remained strong and total nonperforming
assets declined by $2.0 million to $34.0 million, representing
0.23% of total assets, which is a decline of 2 basis points from
the balance at December 31, 2017. The year over year improvement
totaled $4.6 million and improved by 12 basis points from March 31
2017. During the first quarter of 2018, non-acquired NPAs,
excluding acquired loans and acquired other real estate owned
(“OREO”), declined by $697,000 to $16.7 million. This decrease was
in all categories, loans, other real estate owned and other
repossessed assets.
During the fourth quarter, the Company reported $8.2 million in
nonperforming loans related to “acquired non-credit impaired
loans.” This was a decrease of $1.2 million from the balance at
December 31, 2017. This was $3.3 million higher than the balance at
March 31, 2017 due primarily to the acquisition of Park Sterling in
the fourth quarter of 2017. Additionally, acquired nonperforming
OREO and other assets owned decreased by $124,000 from the balance
at December 31, 2017 and declined by $5.9 million from the balance
of March 31, 2017.
At March 31. 2018, the allowance for non-acquired loan losses
was $45.2 million, or 0.67%, of non-acquired period-end loans and
$43.4 million, or 0.67%, at December 31, 2017, and down from 0.69%
when the ALLL was $38.4 million at March 31, 2017. The current
allowance for loan losses provides 3.16 times coverage of
period-end non-acquired nonperforming loans, up from 2.93 times at
December 31, 2017, and 2.95 times at March 31, 2017. Net
charge-offs within the non-acquired portfolio were $367,000, or
0.02% annualized, in the first quarter of 2018, compared to
$265,000 for the fourth quarter of 2017, or 0.02% annualized. First
quarter 2017 net charge-offs totaled $628,000, or 0.05% annualized.
The net charge-offs currently being experienced were primarily from
overdraft and ready reserve accounts within the loan portfolio.
Loans were in a net recovery position over the past three quarters.
During the first quarter of 2018, the provision for non-acquired
loan losses totaled $2.1 million compared to $2.2 million in the
fourth quarter of 2017, and $2.1 million in the first quarter of
2017. The non-acquired provision for loan losses in the first
quarter of 2018 and fourth quarter of 2017 resulted primarily from
the risk and uncertainties in new and expanded markets resulting
from the merger with PSTB.
Net charge offs related to “acquired non-credit impaired loans”
were $169,000, or 0.02% annualized, in the first quarter of 2018.
The Company recorded a provision for loan losses, accordingly,
during the first quarter of 2018. Net charge-offs decreased by
$233,000, as compared to the fourth quarter of 2017, when the
Company reported $402,000 in net charge offs. In the first quarter
of 2017, net charge-offs totaled $326,000, or 0.08% annualized.
During the first quarter of 2018, the Company recorded net
impairment within certain acquired credit impaired loan pools
totaling $163,000 compared to $1.2 million valuation allowance in
the fourth quarter of 2017. Impairments are recognized immediately
and releases are generally spread over time.
Total OREO decreased to $11.1 million at March 31, 2018, down
from $11.2 million at December 31, 2017. This decrease was
primarily the result of the disposition of 21 properties of both
acquired and non-acquired OREO. In addition, OREO was written down
by an additional $777,000 due to new appraisals and contracts on
existing property. Partially offsetting these declines was the
addition of OREO from various regions totaling $3.1 million.
Net Interest Income and Margin
Three Months
Ended March 31, 2018 December 31, 2017 March
31, 2017 (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, reverse repo, and time deposits
$ 165,752
$ 660 1.61 % $ 216,386 $ 793 1.45 % $
244,992 $ 573 0.95 % Investment securities (taxable)
1,453,480 8,788 2.45 % 1,256,347 7,269
2.30 % 1,267,985 7,231 2.31 % Investment securities (tax-exempt)
212,719 1,559 2.97 % 202,480 1,443 2.83
% 196,773 1,430 2.95 % Loans held for sale
32,517 307
3.83 % 39,586 347 3.48 % 41,866 408 3.95 % Loans
10,604,506 126,734 4.85 %
9,082,330 107,972 4.72 % 7,786,521
91,344 4.76 % Total interest-earning assets
12,468,974
138,048 4.49 % 10,797,129 117,824 4.33 %
9,538,137 100,986 4.29 % Noninterest-earning assets
1,960,659 1,547,237 1,338,186
Total
Assets $ 14,429,633 $ 12,344,366 $ 10,876,323
Interest-Bearing Liabilities: Transaction and money
market accounts
$ 5,221,974 $ 2,893
0.22 % $ 4,523,525 $ 1,443 0.13 % $ 3,889,956 $ 983
0.10 % Savings deposits
1,443,868 674 0.19
% 1,388,183 508 0.15 % 1,350,168 504 0.15 % Certificates and
other time deposits
1,758,223 3,346 0.77
% 1,319,107 2,269 0.68 % 1,065,077 1,010 0.38 % Federal
funds purchased and repurchase agreements
343,974 454
0.54 % 307,079 324 0.42 % 359,564 240 0.27 % Other
borrowings
225,496 1,708 3.07
% 102,309 1,006 3.90 % 110,469
887 3.26 % Total interest-bearing liabilities
8,993,535
9,075 0.41 % 7,640,203 5,550 0.29 % 6,775,234
3,624 0.22 % Noninterest-bearing liabilities
3,120,746
2,827,699 2,539,495 Shareholders' equity
2,315,352
1,876,464 1,561,594 Total Non-IBL and shareholders'
equity
5,436,098 4,704,163 4,101,089
Total liabilities and shareholders' equity $
14,429,633 $ 12,344,366 $ 10,876,323
Net interest income
and margin (NON-TAX EQUIV.) $ 128,973 4.19
% $ 112,274 4.13 % $ 97,362 4.13 %
Net interest margin
(TAX EQUIVALENT) 4.22 % 4.18 % 4.19 %
Overall Cost of Funds (including demand deposits)
0.31 % 0.21 % 0.16 %
Non-taxable equivalent net interest income was $129.0 million
for the first quarter of 2018, a $16.7 million increase from the
fourth quarter of 2017, resulting primarily from the additional
interest income from acquired loans from the merger with PSTB. The
first quarter included a full quarter while the fourth quarter
included one month of the PSTB acquired loans. The highlights are
below:
1. Average balance of non-acquired loans
increased by approximately $254.9 million and resulted in
non-acquired loan interest income of $65.2 million, a $2.6 million
increase from the fourth quarter of 2017. The yield on total
non-acquired loans was 4.01% up from 3.91% in the fourth quarter of
2017.
2. Acquired loan interest income increased
$16.1 million from the fourth quarter of 2017, to $61.5 million.
The yield on acquired loans for the first quarter of 2018
(including the merger with PSTB) was 6.23% and decreased from 6.57%
in the fourth quarter of 2017, while the average balance of
acquired loans increased by $1.3 billion in the first quarter of
2018. The fourth quarter of 2017 only included one month of PSTB
acquired loans and we now have the impact of a full quarter. The
decline in the acquired loan yield was primarily the result of the
payoffs of acquired loans during the quarter. Any future decline in
the acquired loan yield will be primarily dependent upon the level
of loan pay downs and pay-offs each quarter within the acquired
loan portfolio. The first quarter of 2018 total loan yield
(including PSTB) was 4.85% up from 4.72% in the fourth quarter of
2017 and from 4.77% in the first quarter of 2017;
3. The average balance of the investment
securities portfolio increased by $207.4 million as a result of
having the PSTB securities portfolio for the full quarter, compared
to the fourth quarter of 2017. The yield on the securities
portfolio was 2.52% in the first quarter of 2018 compared to 2.37%
in the fourth quarter of 2017. This resulted in $1.6 million in
additional securities interest income; and
4. Interest expense increased by $3.5 million
in the first quarter of 2018 compared to the fourth quarter of
2017. This increase was within all categories of funding from the
merger with PSTB and an increase in interest rates on all
categories of funding, except other borrowings. The first quarter
of 2018 interest rate on other borrowings declined to 3.07% due to
short-term FHLB borrowings in late fourth quarter of 2017, compared
to the fourth quarter of 2017 interest rate of 3.90%. The higher
rate in the fourth quarter of 2018 was primarily driven by the
long-term rates associated with trust preferred debt. Total cost of
funds on interest-bearing liabilities was 41 basis points, an
increase of 12 basis points from the fourth quarter of 2017 and up
19 basis points from the first quarter of 2017. The inclusion of
the Park Sterling funding balances resulted in an increase in the
Company’s interest-bearing liabilities of approximately $2.2
billion from the first quarter of 2017.
Tax-equivalent net interest margin improved 4 basis points from
the fourth quarter of 2017 and improved by 2 basis points from the
first quarter of 2017. The yield /cost on all asset categories and
all funding categories increased, except other borrowings. During
the first quarter of 2018, the Company’s average total assets
increased to $14.4 billion from $12.3 billion at December 31, 2017
and from $10.9 billion at March 31, 2017. Average earning assets
totaled $12.5 billion up $1.7 billion compared to the fourth
quarter of 2017, as Park Sterling balances were included for the
entire quarter. Average interest-bearing liabilities totaled $9.0
billion for the first quarter of 2018 up from $7.6 billion for the
fourth quarter of 2017, and up from $6.8 billion at March 31, 2017.
Average non-interest bearing demand deposits increased by $280.6
million during the first quarter of 2018 from the merger with PSTB
and growth during the first quarter of 2018; and increased by
$530.8 million from March 31, 2017, due primarily to the merger
with Park Sterling and growth during the past year. Including the
impact of noninterest bearing deposits, the Company’s cost of funds
was 31 basis points for the first quarter of 2018 compared to 21
basis points in the fourth quarter of 2017, and compared to 16
basis points in the first quarter of 2017.
Accretable Yield Rollforward
(Acquired credit impaired loans) March 31, 2018 Mar.
31, Dec. 31, Sept. 30, June 30, Mar.
31, (Dollars in thousands) 2018 2017
2017 2017 2017 Balance at beginning of
period $ 133,095 $ 132,575 $ 139,283 $ 149,723 $ 155,379
Interest income * (12,366 ) (13,561 ) (14,362 ) (14,297 ) (15,214 )
Additions from Georgia Bank & Trust Acquisition - 307 - - 4,603
Additions from Park Sterling Bank Acquisition - 8,829 - - -
Improved/(Decline in) cash flows affecting nonaccretable difference
9,204 5,118 7,756 3,954 5,062 Other changes, net (76 )
(173 ) (102 ) (97 ) (107 )
Balance at end of period $ 129,857 $ 133,095 $
132,575 $ 139,283 $ 149,723 * Interest income
does not include interest income from loan advances
post-acquisition on lines of credit, late fees or other loan fees.
The table above reflects the quarterly roll forward of the
acquired credit impaired loan accretable yield.
The Company recognized noncash loan interest income from the
discount (fair value adjustment) on the acquired noncredit impaired
loan portfolio of $9.6 million, $6.1 million, $2.2 million; $3.3
million; and $4.2 million, respectively during the five quarters.
The remaining balance of the discount on the acquired noncredit
impaired loan portfolio totals $55.3 million at March 31, 2018.
Noninterest Income and Expense
Three Months Ended Mar. 31, Dec.
31, Sept. 30, June 30, Mar. 31, (Dollars
in thousands)
2018 2017
2017 2017 2017 Noninterest
income: Fees on deposit accounts
$ 25,506 $
23,560 $ 22,448 $ 22,155 $ 21,719 Mortgage banking income
4,948 3,744 3,446 5,195 5,569 Trust and investment services
income
7,514 6,698 6,310 6,452 5,941 Securities gains, net
-- 33 525 110 -- Recoveries of fully charged off acquired
loans
2,975 2,925 1,944 2,171 1,532 Other
2,575 2,138 1,367 1,491 1,674
Total noninterest income
$ 43,518 $ 39,098 $ 36,040 $
37,574 $ 36,435
Noninterest expense: Salaries and
employee benefits
$ 62,465 $ 50,735 $ 47,245 $ 47,580
$ 48,886 Net occupancy expense
8,166 6,707 6,214 6,048 6,388
Information services expense
9,738 6,686 6,003 6,413 6,360
Furniture and equipment expense
4,626 4,146 3,751 3,877
3,794 Bankcard expense
3,654 2,894 2,748 2,886 2,770 OREO
expense and loan related
1,661 1,073 1,753 1,753 2,142
Business development and staff related
2,082 2,107 1,728
1,958 2,070 Amortization of intangibles
3,413 2,857 2,494
2,495 2,507 Professional fees
1,699 1,338 1,265 1,599 1,773
Supplies, printing and postage expense
1,392 1,433 1,491
1,570 1,654 FDIC assessment and other regulatory charges
1,263 895 918 989 1,122 Advertising and marketing
736
1,563 852 989 559 Other operating expenses
4,235 4,547 3,561
4,075 3,674 Merger & branch consolidation expense
11,296 17,621 1,551 4,307 21,024
Total noninterest expense
$ 116,426 $ 104,602 $
81,574 $ 86,539 $ 104,723
Noninterest income totaled $43.5 million during the first
quarter of 2018, an increase of $4.4 million from the fourth
quarter of 2017. The increase was generally the result of the
merger with PSTB and the inclusion of a full quarter of activity of
noninterest income. The following provides additional explanations
of noninterest income:
- Higher mortgage banking income of $1.2
million, from an increase of $1.4 million in income related to the
mortgage servicing rights, net of the hedge, from improved
rate-related gains on the MSR, partially offset by lower income
from the secondary market of $195,000 due to lower sales volume and
pricing;
- Higher fees on deposit accounts of $1.9
million from higher service charges on deposit accounts from
accounts added from PSTB. An increase in fees associated with debit
card usage, primarily related to the addition of accounts from
PSTB, and higher retail fees due to a full quarter of fees on PSTB
accounts;
- Higher income on trust and investment
services of $816,000 from having more assets under management
primarily related to the additions from the merger with Park
Sterling;
- Higher other income of $437,000 from
the merger with PSTB primarily from cash surrender value of bank
owned life insurance and capital markets income.
Compared to the first quarter of 2017, noninterest income grew
by $7.1 million. The increase was primarily related to the merger
with PSTB:
1. Higher trust and investment services
income of $1.6 million,
2. Higher fees on deposit accounts with more
customers from the merger totaling $3.8 million, and
3. Higher recoveries of acquired credit
impaired loans totaling $1.4 million (minimal impact from PSTB)
Noninterest expense was $116.4 million in the first quarter of
2018, an increase of $11.8 million from $104.6 million in the
fourth quarter of 2017. Merger and conversion related expense
decreased $6.3 million from the cost incurred in the fourth quarter
of 2017. These merger and conversion expenses were associated with
PSTB, as the conversion was completed April 20th through the 23rd,
2018. Salaries and employee benefits were $11.7 million higher for
the following reasons:
(1) Payment of $2.8 million in bonuses to
employees in early February;
(2) Full quarter of PSTB personnel cost vs
one month in the fourth quarter; and
(3) Higher payroll taxes due to FICA and
unemployment in the new tax year.
OREO and trouble loan related expense was higher by $588,000 due
primarily to a write down of an asset that is now under contract.
The increases in most other categories of expense was due to the
operating expenses from the Park Sterling branches for the full
quarter.
Compared to the first quarter of 2017, noninterest expense was
$11.7 million higher. The net increase was primarily due to five
categories of expense: (1) salaries and benefits increased $13.6
million due primarily to the additional employees from Park
Sterling and the related benefits and incentives, and from the $2.8
million bonuses paid to all employees in early February of 2018,
(2) information services increased $3.4 million due primarily to
the branches added from Park Sterling, (3) net occupancy and
furniture and equipment expense increased by $1.8 million and
$832,000, respectively, due to the addition of branches added from
Park Sterling, and (4) amortization of intangibles increased
$906,000, from additional core deposit intangible from Park
Sterling. Merger-related and conversion cost decreased $9.7
million. These cost were primarily related to the merger with
Southeastern Bank Financial Corporation in the first quarter of
2017 and included closing, compared to PSTB merger-related cost in
the first quarter of 2018.
South State Corporation will hold a conference call today, April
24, 2018 at 10 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 10117855. Participants can also listen to the live audio
webcast through the Investor Relations section of
www.SouthStateBank.com. A replay will be available beginning April
24, 2018 by 2:00 p.m. Eastern Time until 9:00 a.m. on May 8, 2018.
To listen to the replay, dial 877-344-7529 or 412-317-0088. The
passcode is 10117855.
South State Corporation is a financial services company
headquartered in Columbia, South Carolina with approximately $14.7
billion in assets. South State Bank, the company’s primary
subsidiary, provides consumer, commercial, mortgage, and wealth
management solutions throughout the Carolinas, Georgia and
Virginia. South State has served customers since 1934. Additional
information is available 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 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.
Three Months Ended
(Dollars in thousands, except per share data)
Mar.31,
Dec. 31, Sept. 30, June 30, Mar.31,
RECONCILIATION OF GAAP TO Non-GAAP 2018
2017 2017
2017 2017 Adjusted net income
(non-GAAP) (3) Net income (GAAP)
$ 42,326 $ 2,421
$ 35,046 $ 31,823 $ 18,264 Securities gains, net of tax
--
(22 ) (349 ) (73 ) -- Provision for income taxes - Deferred Tax
Asset Write-Off
-- 26,558 -- -- -- Merger and branch
consolidation/acq. expense, net of tax
8,918
12,431 1,031 2,870
15,137 Adjusted net income (non-GAAP)
$ 51,244
$ 41,388 $ 35,728 $ 34,620 $ 33,401
Adjusted net income per common share - Basic
(3) Earnings per common share - Basic (GAAP)
$
1.15 $ 0.08 $ 1.20 $ 1.09 $ 0.63 Effect to adjust for
securities gains
-- (0.00 ) (0.01 ) (0.00 ) -- Effect to
adjust for provision for income tax DTA Write-Off
-- 0.84 --
-- -- Effect to adjust for merger & branch consol./acq expenses
0.25 0.39 0.04
0.10 0.53 Adjusted net income per
common share - Basic (non-GAAP)
$ 1.40 $ 1.31
$ 1.23 $ 1.19 $ 1.16
Adjusted
net income per common share - Diluted (3) Earnings per common
share - Diluted (GAAP)
$ 1.15 $ 0.08 $ 1.19 $ 1.08 $
0.63 Effect to adjust for securities gains
-- (0.00 ) (0.01
) (0.00 ) 0.00 Effect to adjust for provision for income tax DTA
Write-Off
-- 0.83 - -- -- Effect to adjust for merger &
branch consol./acq expenses
0.24 0.39
0.04 0.10 0.52
Adjusted net income per common share - Diluted (non-GAAP)
$
1.39 $ 1.30 $ 1.22 $ 1.18 $ 1.15
Adjusted Return of Average Assets (3) Return
on average assets (GAAP)
1.19 % 0.08 % 1.25 % 1.15 %
0.68 % Effect to adjust for provision for income tax DTA Write-Off
0.00 % 0.85 % 0.00 % 0.00 % 0.00 % Effect to adjust
for securities gains
0.00 % 0.00 % -0.01 % 0.00 %
0.00 % Effect to adjust for merger & branch consol./acq
expenses
0.25 % 0.40 % 0.04 %
0.10 % 0.57 % Adjusted return on average assets
(non-GAAP)
1.44 % 1.33 % 1.28 %
1.25 % 1.25 %
Adjusted Return of Average
Equity (3) Return on average equity (GAAP)
7.41 %
0.51 % 8.57 % 7.98 % 4.74 % Effect to adjust for securities gains
0.00 % 0.00 % -0.09 % -0.02 % 0.00 % Effect to adjust
for provision for income tax DTA Write-Off
0.00 %
5.62 % 0.00 % 0.00 % 0.00 % Effect to adjust for merger &
branch consol./acq expenses
1.57 % 2.62
% 0.25 % 0.73 % 3.93 % Adjusted return on
average equity (non-GAAP)
8.98 % 8.75 %
8.73 % 8.69 % 8.67 %
Adjusted Return
on Average Common Tangible Equity (3) (7) Return on average
common equity (GAAP)
7.41 % 0.51 % 8.57 % 7.98 % 4.74
% Effect to adjust for securities gains
0.00 % 0.00 %
-0.09 % -0.02 % 0.00 % Effect to adjust for provision for income
tax DTA Write-Off
0.00 % 5.62 % 0.00 % 0.00 % 0.00 %
Effect to adjust for merger & branch consol./acq expenses
1.56 % 2.63 % 0.25 % 0.72 % 3.93 % Effect to adjust
for intangible assets
8.63 % 7.07 %
6.48 % 6.66 % 6.88 % Adjusted return on
average common tangible equity (non-GAAP)
17.60
% 15.83 % 15.21 % 15.34 % 15.55
%
Tangible Book Value Per Common Share (7) Book value per
common share (GAAP)
$ 63.14 $ 62.81 $ 55.79 $ 54.87 $
54.05 Effect to adjust for intangible assets
(29.09
) (29.20 ) (22.13 ) (22.17 )
(22.28 ) Tangible book value per common share (non-GAAP)
$
34.05 $ 33.61 $ 33.66 $ 32.70 $
31.77
Tangible Equity-to-Tangible Assets (7)
Equity-to-assets (GAAP)
15.81 % 15.96 % 14.62 % 14.39
% 14.17 % Effect to adjust for intangible assets
-6.61 % -6.73 % -5.26 % -5.28 %
-5.32 % Tangible equity-to-tangible assets (non-GAAP)
9.20 % 9.23 % 9.36 % 9.11 %
8.85 %
Footnotes to tables:
(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) Adjusted earnings, adjusted return on average assets, and
adjusted 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, other-than-temporary-impairment (OTTI), and
merger and branch consolidation related expense. It also reflects
an adjustment for the deferred tax asset revaluation in the fourth
quarter of 2017. Management believes that non-GAAP adjusted
measures provide additional useful information that allows readers
to evaluate the ongoing performance of the company. Non-GAAP
measures should not be considered as an alternative to any measure
of performance or financial condition as promulgated under GAAP,
and investors should consider the company's performance and
financial condition as reported under GAAP and all other relevant
information when assessing the performance or financial condition
of the company. Non-GAAP measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the company's results or financial
condition as reported under GAAP. Adjusted earnings and the related
adjusted return measures (non-GAAP) exclude the following from net
income (GAAP) on an after-tax basis: (a) pre-tax merger and branch
consolidation related expense of $11.3 million, $17.6 million, $1.6
million, $4.3 million, and $21.0 million, for the quarters ended
March 31, 2018, December 31, 2017, September 30, 2017, June 30,
2017, and March 31, 2017, respectively; and (b) securities gains,
net of $33,000, $525,000 and $110,000 for the quarter ended
December 31, 2017, September 30, 2017 and June 30, 2017. In the
fourth quarter of 2017, the Company revalued its net deferred tax
assets with the Tax Act of 2017 with an increase in our income tax
provision of $26.6 million.
(4) Repossessed assets include OREO and other nonperforming
assets.
(5) Calculated by dividing total non-acquired NPAs by total
assets.
(6) March 31, 2018 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) 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.
(8) Includes noncash loan interest income related to the
discount on acquired performing loans of $9.6 million, $6.1
million, $2.2 million, $3.3 million, and $4.2 million, respectively
during the five quarters above.
(9) Adjusted efficiency ratio is calculated by taking the
noninterest expense excluding branch consolidation cost and merger
cost divided by net interest income and noninterest income
excluding securities gains (losses) and OTTI.
Cautionary Statement Regarding Forward Looking Statements
Statements included in this communication, which are not
historical in nature are intended to be, and are hereby identified
as, forward looking statements for purposes of the safe harbor
provided by Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward
looking statements generally include words such as “expects,”
“projects,” “anticipates,” “believes,” “intends,” “estimates,”
“strategy,” “plan,” “potential,” “possible” and other similar
expressions. South State Corporation (“South State”) 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 South State or
Park Sterling Corporation (“Park Sterling”); (2) the
possibility that the anticipated benefits of the transaction are
not realized when expected or at all, including as a result of the
impact of, or problems arising from, the integration of the two
companies or as a result of the strength of the economy and
competitive factors in the areas where South State and Park
Sterling do business; (3) the possibility that the transaction
may be more expensive to complete than anticipated, including as a
result of unexpected factors or events; (4) diversion of
management’s attention from ongoing business operations and
opportunities; (5) potential adverse reactions or changes to
business or employee relationships, including those resulting from
the announcement or completion of the transaction; (6) South
State’s ability to complete the integration of Park Sterling
successfully; (7) 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; (8) 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 South State’s equity; (9) liquidity risk affecting
the bank’s ability to meet its obligations when they come due;
(10) risks associated with an anticipated increase in South
State’s investment securities portfolio, including risks associated
with acquiring and holding investment securities or potentially
determining that the amount of investment securities South State
desires to acquire are not available on terms acceptable to South
State; (11) price risk focusing on changes in market factors that
may affect the value of traded instruments in “mark-to-market”
portfolios; (12) transaction risk arising from problems with
service or product delivery; (13) compliance risk involving risk to
earnings or capital resulting from violations of or nonconformance
with laws, rules, regulations, prescribed practices, or ethical
standards; (14) 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; (15) strategic risk resulting from adverse business
decisions or improper implementation of business decisions; (16)
reputation risk that adversely affects earnings or capital arising
from negative public opinion; (17) terrorist activities risk that
results in loss of consumer confidence and economic disruptions;
(18) cybersecurity risk related to the dependence of South State
and Park Sterling on internal computer systems and the technology
of outside service providers, as well as the potential impacts of
third party security breaches, subjects each company to potential
business disruptions or financial losses resulting from deliberate
attacks or unintentional events; (19) economic downturn risk
potentially resulting in deterioration in the credit markets,
greater than expected non-interest expenses, excessive loan losses
and other negative consequences, with 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; (20) greater than expected noninterest expenses; (21)
excessive loan losses; (22) failure to realize synergies and other
financial benefits from, and to limit liabilities associated with,
mergers and acquisitions within the expected time frame; (23)
potential deposit attrition, higher than expected costs, customer
loss and business disruption associated with merger and acquisition
integration, including, without limitation, potential difficulties
in maintaining relationships with key personnel and other
integration related-matters; (24) the risks of fluctuations in
market prices for South State common stock that may or may not
reflect economic condition or performance of South State; (25) the
payment of dividends on South State common stock is subject to
regulatory supervision as well as the discretion of the board of
directors of South State, South State’s performance and other
factors; and (26) other risks and uncertainties disclosed in South
State’s or Park Sterling’s most recent Annual Report on
Form 10-K filed with the U.S. Securities and Exchange
Commission (“SEC) or disclosed in documents filed or furnished by
South State or Park Sterling with or to the SEC after the filing of
such Annual Reports on Form 10-K, and of which could cause
actual results to differ materially from future results expressed,
implied or otherwise anticipated by such forward-looking
statements.
All forward-looking statements speak only as of the date they
are made and are based on information available at that time. South
State does not undertake any obligation to update or otherwise
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by
federal securities laws. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance on such statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180424005445/en/
South State CorporationMedia Contact:Kellee McGahey,
843-529-5574orAnalyst Contact:Jim Mabry, 843-529-5593
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