SouthState Corporation Reports Fourth Quarter 2022 Results, Declares Quarterly Cash Dividend
"The resilience of
Highlights of the fourth quarter of 2022 include:
Returns
- Reported Diluted Earnings per Share ("EPS") of
$1.88 ; Adjusted Diluted EPS (Non-GAAP) of$1.90 - Net Income of
$143.5 million ; Adjusted Net Income (Non-GAAP) of$144.7 million - Return on Average Common Equity of 11.4% and Reported Return on Average Tangible Common Equity (Non-GAAP) of 20.2%; Adjusted Return on Average Tangible Common Equity (Non-GAAP) of 20.3%*
- Return on Average Assets ("ROAA") of 1.28%; Adjusted ROAA (Non-GAAP) of 1.29%*
- Pre-Provision Net Revenue ("PPNR") per weighted average diluted share (Non-GAAP) of
$3.03 , up 11% from the prior quarter's$2.74 and up 60% from$1.89 in the year ago quarter - Book Value per Share of
$67.04 increased by$2.01 per share compared to the prior quarter - Tangible Book Value ("TBV") per Share (Non-GAAP) of
$40.09 , up$2.12 from the prior quarter
∗ Annualized percentages
Performance
- Net Interest Income of
$396 million ; Core Net Interest Income (excluding loan accretion and deferred fees on PPP) (Non-GAAP) increased$36 million from prior quarter - Net Interest Margin ("NIM"), non-tax equivalent and tax equivalent (Non-GAAP) of 3.96% and 3.99%, respectively, up 41 basis points from prior quarter
- Noninterest Income of
$63 million down$10 million compared to the prior quarter due to correspondent banking and capital markets income and mortgage banking; Noninterest Income represented 0.57% of average assets for the fourth quarter of 2022 - Noninterest Expense, excluding merger and branch consolidation related expense (Non-GAAP), increased
$1 million compared to the prior quarter - 5.5% revenue growth with 0.5% expense growth generated 5.0% operating leverage in the quarter
- Efficiency Ratio improved to 48% from the prior quarter's 53%; Adjusted Efficiency Ratio (Non-GAAP) improved to 48% from the prior quarter's 50%
-
$47.1 million Provision for Credit Losses ("PCL") driven by changing economic forecasts and loan portfolio growth, in spite of net loan recoveries and only$873 thousand in total net charge-offs (including DDA charge-offs)
Balance Sheet
- Loans increased
$1.3 billion , or 19% annualized, led by consumer real estate, commercial and industrial, and construction and land development loans; ending loan to deposit ratio of 83% - Deposits declined
$559 million , or 6% annualized; total deposit cost was 0.21%, up 13 basis points from prior quarter - Began applying settle-to-market accounting to variation margin payments for centrally cleared swaps, resulting in an offset of
$824 million recorded with market value of derivatives in Other Assets and$8.5 million of interest cost during the current quarter. Refer to the non-interest income table on page 6 and note 8 on page 11 for more details.
Subsequent Events
- The Board of Directors of the Company declared a quarterly cash dividend on its common stock of
$0.50 per share, payable onFebruary 17, 2023 to shareholders of record as of February 10, 2023
Financial Performance
|
|
Three Months Ended |
|
Twelve Months Ended |
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(Dollars in thousands, except per share data) |
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INCOME STATEMENT |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|||||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees (1) |
|
$ |
359,552 |
|
$ |
312,856 |
|
$ |
272,000 |
|
$ |
233,617 |
|
$ |
238,310 |
|
$ |
1,178,026 |
|
$ |
990,519 |
|
Investment securities, trading securities, federal funds sold and securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchased under agreements to resell (8) |
|
|
64,337 |
|
|
63,476 |
|
|
54,333 |
|
|
36,854 |
|
|
29,063 |
|
|
218,999 |
|
|
94,285 |
|
Total interest income |
|
|
423,889 |
|
|
376,332 |
|
|
326,333 |
|
|
270,471 |
|
|
267,373 |
|
|
1,397,025 |
|
|
1,084,804 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits (8) |
|
|
19,945 |
|
|
7,534 |
|
|
4,914 |
|
|
4,591 |
|
|
5,121 |
|
|
36,984 |
|
|
33,182 |
|
Federal funds purchased, securities sold under agreements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to repurchase, and other borrowings |
|
|
7,940 |
|
|
6,464 |
|
|
5,604 |
|
|
4,362 |
|
|
4,156 |
|
|
24,370 |
|
|
18,447 |
|
Total interest expense |
|
|
27,885 |
|
|
13,998 |
|
|
10,518 |
|
|
8,953 |
|
|
9,277 |
|
|
61,354 |
|
|
51,629 |
|
Net interest income (8) |
|
|
396,004 |
|
|
362,334 |
|
|
315,815 |
|
|
261,518 |
|
|
258,096 |
|
|
1,335,671 |
|
|
1,033,175 |
|
Provision (recovery) for credit losses |
|
|
47,142 |
|
|
23,876 |
|
|
19,286 |
|
|
(8,449) |
|
|
(9,157) |
|
|
81,855 |
|
|
(165,273) |
|
Net interest income after provision (recovery) for credit losses |
|
|
348,862 |
|
|
338,458 |
|
|
296,529 |
|
|
269,967 |
|
|
267,253 |
|
|
1,253,816 |
|
|
1,198,448 |
|
Noninterest income (8) |
|
|
63,392 |
|
|
73,053 |
|
|
86,756 |
|
|
86,046 |
|
|
91,902 |
|
|
309,247 |
|
|
354,252 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense |
|
|
227,957 |
|
|
226,754 |
|
|
225,779 |
|
|
218,324 |
|
|
217,392 |
|
|
898,813 |
|
|
869,473 |
|
Merger and branch consolidation related expense |
|
|
1,542 |
|
|
13,679 |
|
|
5,390 |
|
|
10,276 |
|
|
6,645 |
|
|
30,888 |
|
|
67,242 |
|
Extinguishment of debt cost |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
11,706 |
|
Total noninterest expense |
|
|
229,499 |
|
|
240,433 |
|
|
231,169 |
|
|
228,600 |
|
|
224,037 |
|
|
929,701 |
|
|
948,421 |
|
Income before provision for income taxes |
|
|
182,755 |
|
|
171,078 |
|
|
152,116 |
|
|
127,413 |
|
|
135,118 |
|
|
633,362 |
|
|
604,279 |
|
Income taxes provision |
|
|
39,253 |
|
|
38,035 |
|
|
32,941 |
|
|
27,084 |
|
|
28,272 |
|
|
137,313 |
|
|
128,736 |
|
Net income |
|
$ |
143,502 |
|
$ |
133,043 |
|
$ |
119,175 |
|
$ |
100,329 |
|
$ |
106,846 |
|
$ |
496,049 |
|
$ |
475,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Adjusted net income (non-GAAP) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
143,502 |
|
$ |
133,043 |
|
$ |
119,175 |
|
$ |
100,329 |
|
$ |
106,846 |
|
$ |
496,049 |
|
$ |
475,543 |
|
Securities gains, net of tax |
|
|
— |
|
|
(24) |
|
|
— |
|
|
— |
|
|
(2) |
|
|
(24) |
|
|
(81) |
|
Initial provision for credit losses - NonPCD loans and UFC from ACBI, net of tax |
|
|
— |
|
|
— |
|
|
— |
|
|
13,492 |
|
|
— |
|
|
13,492 |
|
|
— |
|
Merger and branch consolidation related expense, net of tax |
|
|
1,211 |
|
|
10,638 |
|
|
4,223 |
|
|
8,092 |
|
|
5,255 |
|
|
24,163 |
|
|
52,740 |
|
Extinguishment of debt cost, net of tax |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9,081 |
|
Adjusted net income (non-GAAP) |
|
$ |
144,713 |
|
$ |
143,657 |
|
$ |
123,398 |
|
$ |
121,913 |
|
$ |
112,099 |
|
$ |
533,680 |
|
$ |
537,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Basic earnings per common share |
|
$ |
1.90 |
|
$ |
1.76 |
|
$ |
1.58 |
|
$ |
1.40 |
|
$ |
1.53 |
|
$ |
6.65 |
|
$ |
6.76 |
|
Diluted earnings per common share |
|
$ |
1.88 |
|
$ |
1.75 |
|
$ |
1.57 |
|
$ |
1.39 |
|
$ |
1.52 |
|
$ |
6.60 |
|
$ |
6.71 |
|
Adjusted net income per common share - Basic (non-GAAP) (2) |
|
$ |
1.91 |
|
$ |
1.90 |
|
$ |
1.64 |
|
$ |
1.71 |
|
$ |
1.61 |
|
$ |
7.16 |
|
$ |
7.63 |
|
Adjusted net income per common share - Diluted (non-GAAP) (2) |
|
$ |
1.90 |
|
$ |
1.89 |
|
$ |
1.62 |
|
$ |
1.69 |
|
$ |
1.59 |
|
$ |
7.10 |
|
$ |
7.58 |
|
Dividends per common share |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.49 |
|
$ |
0.49 |
|
$ |
0.49 |
|
$ |
1.98 |
|
$ |
1.92 |
|
Basic weighted-average common shares outstanding |
|
|
75,639,640 |
|
|
75,605,960 |
|
|
75,461,157 |
|
|
71,447,429 |
|
|
69,651,334 |
|
|
74,550,708 |
|
|
70,393,262 |
|
Diluted weighted-average common shares outstanding |
|
|
76,326,777 |
|
|
76,182,131 |
|
|
76,094,198 |
|
|
72,110,746 |
|
|
70,289,971 |
|
|
75,181,305 |
|
|
70,888,896 |
|
Effective tax rate |
|
|
21.48 % |
|
|
22.23 % |
|
|
21.66 % |
|
|
21.26 % |
|
|
20.92 % |
|
|
21.68 % |
|
|
21.30 % |
|
Performance and Capital Ratios
|
|
Three Months Ended |
|
Twelve Months Ended |
|
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|||||
|
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
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PERFORMANCE RATIOS |
|
|
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|
Return on average assets (annualized) (8) |
|
|
1.28 |
% |
|
1.17 |
% |
|
1.05 |
% |
|
0.95 |
% |
|
1.03 |
% |
1.12 |
% |
1.19 |
% |
|
Adjusted return on average assets (annualized) (non-GAAP) (2) (8) |
|
|
1.29 |
% |
|
1.27 |
% |
|
1.09 |
% |
|
1.15 |
% |
|
1.08 |
% |
1.20 |
% |
1.35 |
% |
|
Return on average common equity (annualized) |
|
|
11.41 |
% |
|
10.31 |
% |
|
9.36 |
% |
|
8.24 |
% |
|
8.84 |
% |
9.84 |
% |
10.01 |
% |
|
Adjusted return on average common equity (annualized) (non-GAAP) (2) |
|
|
11.50 |
% |
|
11.13 |
% |
|
9.69 |
% |
|
10.01 |
% |
|
9.28 |
% |
10.59 |
% |
11.31 |
% |
|
Return on average tangible common equity (annualized) (non-GAAP) (3) |
|
|
20.17 |
% |
|
17.99 |
% |
|
16.59 |
% |
|
13.97 |
% |
|
14.63 |
% |
17.16 |
% |
16.64 |
% |
|
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3) |
|
|
20.33 |
% |
|
19.36 |
% |
|
17.15 |
% |
|
16.79 |
% |
|
15.30 |
% |
18.40 |
% |
18.68 |
% |
|
Efficiency ratio (tax equivalent) |
|
|
47.96 |
% |
|
53.14 |
% |
|
54.92 |
% |
|
62.99 |
% |
|
61.27 |
% |
54.21 |
% |
65.55 |
% |
|
Adjusted efficiency ratio (non-GAAP) (4) |
|
|
47.63 |
% |
|
50.02 |
% |
|
53.59 |
% |
|
60.05 |
% |
|
59.39 |
% |
52.34 |
% |
59.88 |
% |
|
Dividend payout ratio (5) |
|
|
26.40 |
% |
|
28.44 |
% |
|
31.03 |
% |
|
33.71 |
% |
|
32.02 |
% |
29.54 |
% |
28.43 |
% |
|
Book value per common share |
|
$ |
67.04 |
|
$ |
65.03 |
|
$ |
66.64 |
|
$ |
68.30 |
|
$ |
69.27 |
|
|
|
|
|
|
Tangible book value per common share (non-GAAP) (3) |
|
$ |
40.09 |
|
$ |
37.97 |
|
$ |
39.47 |
|
$ |
41.05 |
|
$ |
44.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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CAPITAL RATIOS |
|
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|
|
|
|
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|
|
|
|
|
|
|
|
Equity-to-assets (8) |
|
|
11.6 |
% |
|
11.1 |
% |
|
11.0 |
% |
|
11.2 |
% |
|
11.5 |
% |
|
|
|
|
|
Tangible equity-to-tangible assets (non-GAAP) (3) (8) |
|
|
7.2 |
% |
|
6.8 |
% |
|
6.8 |
% |
|
7.1 |
% |
|
7.7 |
% |
|
|
|
|
|
Tier 1 leverage (6) (8) * |
|
|
8.7 |
% |
|
8.4 |
% |
|
8.0 |
% |
|
8.5 |
% |
|
8.1 |
% |
|
|
|
|
|
Tier 1 common equity (6) (8) * |
|
|
11.0 |
% |
|
11.0 |
% |
|
11.1 |
% |
|
11.4 |
% |
|
11.8 |
% |
|
|
|
|
|
Tier 1 risk-based capital (6) (8) * |
|
|
11.0 |
% |
|
11.0 |
% |
|
11.1 |
% |
|
11.4 |
% |
|
11.8 |
% |
|
|
|
|
|
Total risk-based capital (6) (8) * |
|
|
13.0 |
% |
|
13.0 |
% |
|
13.0 |
% |
|
13.3 |
% |
|
13.6 |
% |
|
|
|
|
|
* |
The regulatory capital ratios presented above include the assumption of the transitional method relative to the CARES Act in relief of COVID-19 pandemic on the economy and financial institutions in the United States. The referenced relief allows a total five-year "phase in" of the CECL impact on capital and relief over the next two years for the impact on the allowance for credit losses resulting from COVID-19. |
Balance Sheet
|
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Ending Balance |
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(Dollars in thousands, except per share and share data) |
|
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|
|
|
|
|
|
|
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|
|||||
BALANCE SHEET |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
|||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
548,387 |
|
$ |
394,794 |
|
$ |
561,516 |
|
$ |
588,372 |
|
$ |
476,653 |
|
Federal funds sold and interest-earning deposits with banks (8) |
|
|
764,176 |
|
|
2,529,415 |
|
|
4,259,490 |
|
|
5,604,419 |
|
|
6,244,918 |
|
Cash and cash equivalents |
|
|
1,312,563 |
|
|
2,924,209 |
|
|
4,821,006 |
|
|
6,192,791 |
|
|
6,721,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities, at fair value |
|
|
31,263 |
|
|
51,940 |
|
|
88,088 |
|
|
74,234 |
|
|
77,689 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held to maturity |
|
|
2,683,241 |
|
|
2,738,178 |
|
|
2,806,465 |
|
|
2,827,769 |
|
|
1,819,901 |
|
Securities available for sale, at fair value |
|
|
5,326,822 |
|
|
5,369,610 |
|
|
5,666,008 |
|
|
5,924,206 |
|
|
5,193,478 |
|
Other investments |
|
|
179,717 |
|
|
179,755 |
|
|
179,815 |
|
|
179,258 |
|
|
160,568 |
|
Total investment securities |
|
|
8,189,780 |
|
|
8,287,543 |
|
|
8,652,288 |
|
|
8,931,233 |
|
|
7,173,947 |
|
Loans held for sale |
|
|
28,968 |
|
|
34,477 |
|
|
73,880 |
|
|
130,376 |
|
|
191,723 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased credit deteriorated |
|
|
1,429,731 |
|
|
1,544,562 |
|
|
1,707,592 |
|
|
1,939,033 |
|
|
1,987,322 |
|
Purchased non-credit deteriorated |
|
|
5,943,092 |
|
|
6,365,175 |
|
|
6,908,234 |
|
|
7,633,824 |
|
|
5,890,069 |
|
Non-acquired |
|
|
22,805,039 |
|
|
20,926,566 |
|
|
19,319,440 |
|
|
16,983,570 |
|
|
16,050,775 |
|
Less allowance for credit losses |
|
|
(356,444) |
|
|
(324,398) |
|
|
(319,708) |
|
|
(300,396) |
|
|
(301,807) |
|
Loans, net |
|
|
29,821,418 |
|
|
28,511,905 |
|
|
27,615,558 |
|
|
26,256,031 |
|
|
23,626,359 |
|
Other real estate owned ("OREO") |
|
|
1,023 |
|
|
2,160 |
|
|
1,431 |
|
|
3,290 |
|
|
2,736 |
|
Premises and equipment, net |
|
|
520,635 |
|
|
531,160 |
|
|
562,781 |
|
|
568,332 |
|
|
558,499 |
|
Bank owned life insurance |
|
|
964,708 |
|
|
960,052 |
|
|
953,970 |
|
|
942,922 |
|
|
783,049 |
|
Mortgage servicing rights |
|
|
86,610 |
|
|
90,459 |
|
|
87,463 |
|
|
83,339 |
|
|
65,620 |
|
Core deposit and other intangibles |
|
|
116,450 |
|
|
125,390 |
|
|
132,694 |
|
|
140,364 |
|
|
128,067 |
|
|
|
|
1,923,106 |
|
|
1,922,525 |
|
|
1,922,525 |
|
|
1,924,024 |
|
|
1,581,085 |
|
Other assets (8) |
|
|
922,172 |
|
|
980,557 |
|
|
854,506 |
|
|
829,786 |
|
|
928,111 |
|
Total assets |
|
$ |
43,918,696 |
|
$ |
44,422,377 |
|
$ |
45,766,190 |
|
$ |
46,076,722 |
|
$ |
41,838,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
13,168,656 |
|
$ |
13,660,244 |
|
$ |
14,337,018 |
|
$ |
14,052,332 |
|
$ |
11,498,840 |
|
Interest-bearing (8) |
|
|
23,181,967 |
|
|
23,249,545 |
|
|
24,097,601 |
|
|
24,598,679 |
|
|
23,555,989 |
|
Total deposits |
|
|
36,350,623 |
|
|
36,909,789 |
|
|
38,434,619 |
|
|
38,651,011 |
|
|
35,054,829 |
|
Federal funds purchased and securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase |
|
|
556,417 |
|
|
557,802 |
|
|
669,999 |
|
|
770,409 |
|
|
781,239 |
|
Other borrowings |
|
|
392,275 |
|
|
392,368 |
|
|
392,460 |
|
|
405,553 |
|
|
327,066 |
|
Reserve for unfunded commitments |
|
|
67,215 |
|
|
52,991 |
|
|
32,543 |
|
|
30,368 |
|
|
30,510 |
|
Other liabilities (8) |
|
|
1,477,239 |
|
|
1,588,241 |
|
|
1,196,144 |
|
|
1,044,973 |
|
|
841,872 |
|
Total liabilities |
|
|
38,843,769 |
|
|
39,501,191 |
|
|
40,725,765 |
|
|
40,902,314 |
|
|
37,035,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock - |
|
|
189,261 |
|
|
189,191 |
|
|
189,103 |
|
|
189,403 |
|
|
173,331 |
|
Surplus |
|
|
4,215,712 |
|
|
4,207,040 |
|
|
4,195,976 |
|
|
4,214,897 |
|
|
3,653,098 |
|
Retained earnings |
|
|
1,347,042 |
|
|
1,241,413 |
|
|
1,146,230 |
|
|
1,064,064 |
|
|
997,657 |
|
Accumulated other comprehensive loss |
|
|
(677,088) |
|
|
(716,458) |
|
|
(490,884) |
|
|
(293,956) |
|
|
(21,146) |
|
Total shareholders' equity |
|
|
5,074,927 |
|
|
4,921,186 |
|
|
5,040,425 |
|
|
5,174,408 |
|
|
4,802,940 |
|
Total liabilities and shareholders' equity |
|
$ |
43,918,696 |
|
$ |
44,422,377 |
|
$ |
45,766,190 |
|
$ |
46,076,722 |
|
$ |
41,838,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued and outstanding |
|
|
75,704,563 |
|
|
75,676,445 |
|
|
75,641,322 |
|
|
75,761,018 |
|
|
69,332,297 |
|
Net Interest Income and Margin
|
|
Three Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
(Dollars in thousands) |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
||||||
YIELD ANALYSIS |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
||||||
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and interest-earning deposits with banks (8) |
|
$ |
1,849,877 |
|
$ |
16,491 |
|
3.54 % |
|
$ |
3,403,421 |
|
$ |
18,190 |
|
2.12 % |
|
$ |
5,934,353 |
|
$ |
2,216 |
|
0.15 % |
|
Investment securities |
|
|
8,286,894 |
|
|
47,846 |
|
2.29 % |
|
|
8,705,657 |
|
|
45,286 |
|
2.06 % |
|
|
6,945,952 |
|
|
26,847 |
|
1.53 % |
|
Loans held for sale |
|
|
25,633 |
|
|
401 |
|
6.21 % |
|
|
47,119 |
|
|
620 |
|
5.22 % |
|
|
206,920 |
|
|
1,526 |
|
2.93 % |
|
Total loans, excluding PPP |
|
|
29,480,843 |
|
|
359,120 |
|
4.83 % |
|
|
28,267,741 |
|
|
312,172 |
|
4.38 % |
|
|
23,445,336 |
|
|
230,337 |
|
3.90 % |
|
Total PPP loans |
|
|
12,489 |
|
|
31 |
|
0.98 % |
|
|
27,236 |
|
|
64 |
|
0.93 % |
|
|
363,083 |
|
|
6,447 |
|
7.04 % |
|
Total loans held for investment |
|
|
29,493,332 |
|
|
359,151 |
|
4.83 % |
|
|
28,294,977 |
|
|
312,236 |
|
4.38 % |
|
|
23,808,419 |
|
|
236,784 |
|
3.95 % |
|
Total interest-earning assets (8) |
|
|
39,655,736 |
|
|
423,889 |
|
4.24 % |
|
|
40,451,174 |
|
|
376,332 |
|
3.69 % |
|
|
36,895,644 |
|
|
267,373 |
|
2.88 % |
|
Noninterest-earning assets (8) |
|
|
4,774,158 |
|
|
|
|
|
|
|
4,534,539 |
|
|
|
|
|
|
|
4,328,068 |
|
|
|
|
|
|
Total Assets |
|
$ |
44,429,894 |
|
|
|
|
|
|
$ |
44,985,713 |
|
|
|
|
|
|
$ |
41,223,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities ("IBL"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money market accounts (8) |
|
$ |
17,044,865 |
|
$ |
16,901 |
|
0.39 % |
|
$ |
17,503,416 |
|
$ |
5,353 |
|
0.12 % |
|
$ |
16,492,540 |
|
$ |
2,230 |
|
0.05 % |
|
Savings deposits |
|
|
3,536,330 |
|
|
1,021 |
|
0.11 % |
|
|
3,621,493 |
|
|
488 |
|
0.05 % |
|
|
3,267,366 |
|
|
135 |
|
0.02 % |
|
Certificates and other time deposits |
|
|
2,444,361 |
|
|
2,023 |
|
0.33 % |
|
|
2,627,280 |
|
|
1,693 |
|
0.26 % |
|
|
2,889,741 |
|
|
2,756 |
|
0.38 % |
|
Federal funds purchased |
|
|
186,232 |
|
|
1,694 |
|
3.61 % |
|
|
240,814 |
|
|
1,312 |
|
2.16 % |
|
|
493,776 |
|
|
107 |
|
0.09 % |
|
Repurchase agreements |
|
|
363,336 |
|
|
253 |
|
0.28 % |
|
|
376,985 |
|
|
194 |
|
0.20 % |
|
|
390,212 |
|
|
150 |
|
0.15 % |
|
Other borrowings |
|
|
435,806 |
|
|
5,993 |
|
5.46 % |
|
|
392,427 |
|
|
4,958 |
|
5.01 % |
|
|
326,921 |
|
|
3,899 |
|
4.73 % |
|
Total interest-bearing liabilities (8) |
|
|
24,010,930 |
|
|
27,885 |
|
0.46 % |
|
|
24,762,415 |
|
|
13,998 |
|
0.22 % |
|
|
23,860,556 |
|
|
9,277 |
|
0.15 % |
|
Noninterest-bearing liabilities ("Non-IBL") (8) |
|
|
15,427,380 |
|
|
|
|
|
|
|
15,101,738 |
|
|
|
|
|
|
|
12,568,742 |
|
|
|
|
|
|
Shareholders' equity |
|
|
4,991,584 |
|
|
|
|
|
|
|
5,121,560 |
|
|
|
|
|
|
|
4,794,414 |
|
|
|
|
|
|
Total Non-IBL and shareholders' equity |
|
|
20,418,964 |
|
|
|
|
|
|
|
20,223,298 |
|
|
|
|
|
|
|
17,363,156 |
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
44,429,894 |
|
|
|
|
|
|
$ |
44,985,713 |
|
|
|
|
|
|
$ |
41,223,712 |
|
|
|
|
|
|
Net Interest Income and Margin (Non-Tax Equivalent) (8) |
|
|
|
|
$ |
396,004 |
|
3.96 % |
|
|
|
|
$ |
362,334 |
|
3.55 % |
|
|
|
|
$ |
258,096 |
|
2.78 % |
|
Net Interest Margin (Tax Equivalent) (non-GAAP) (8) |
|
|
|
|
|
|
|
3.99 % |
|
|
|
|
|
|
|
3.58 % |
|
|
|
|
|
|
|
2.79 % |
|
Total Deposit Cost (without Debt and Other Borrowings) |
|
|
|
|
|
|
|
0.21 % |
|
|
|
|
|
|
|
0.08 % |
|
|
|
|
|
|
|
0.06 % |
|
Overall Cost of Funds (including Demand Deposits) |
|
|
|
|
|
|
|
0.29 % |
|
|
|
|
|
|
|
0.14 % |
|
|
|
|
|
|
|
0.10 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accretion on Acquired Loans (1) |
|
|
|
|
$ |
7,350 |
|
|
|
|
|
|
$ |
9,550 |
|
|
|
|
|
|
$ |
7,707 |
|
|
|
Total Deferred Fees on PPP Loans |
|
|
|
|
$ |
— |
|
|
|
|
|
|
$ |
— |
|
|
|
|
|
|
$ |
5,655 |
|
|
|
Tax Equivalent ("TE") Adjustment |
|
|
|
|
$ |
2,397 |
|
|
|
|
|
|
$ |
2,345 |
|
|
|
|
|
|
$ |
1,734 |
|
|
|
(1) The remaining loan discount on acquired loans to be accreted into loan interest income totals |
Noninterest Income and Expense
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(Dollars in thousands) |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|||||||
Noninterest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on deposit accounts |
|
$ |
34,480 |
|
$ |
31,188 |
|
$ |
33,658 |
|
$ |
28,902 |
|
$ |
30,293 |
|
$ |
128,228 |
|
$ |
105,641 |
|
Mortgage banking (loss) income |
|
|
(545) |
|
|
2,262 |
|
|
5,480 |
|
|
10,594 |
|
|
12,044 |
|
|
17,790 |
|
|
64,599 |
|
Trust and investment services income |
|
|
9,867 |
|
|
9,603 |
|
|
9,831 |
|
|
9,718 |
|
|
9,520 |
|
|
39,019 |
|
|
36,981 |
|
Securities gains, net |
|
|
— |
|
|
30 |
|
|
— |
|
|
— |
|
|
2 |
|
|
30 |
|
|
102 |
|
Correspondent banking and capital market income (8) |
|
|
16,760 |
|
|
20,552 |
|
|
27,604 |
|
|
27,994 |
|
|
30,216 |
|
|
92,910 |
|
|
110,005 |
|
Interest on centrally-cleared variation margin (8) |
|
|
(8,451) |
|
|
(4,125) |
|
|
(1,536) |
|
|
(44) |
|
|
8 |
|
|
(14,155) |
|
|
43 |
|
Total Correspondent banking and capital market income (8) |
|
|
8,309 |
|
|
16,427 |
|
|
26,068 |
|
|
27,950 |
|
|
30,224 |
|
|
78,755 |
|
|
110,048 |
|
Bank owned life insurance income |
|
|
6,723 |
|
|
6,082 |
|
|
6,246 |
|
|
5,260 |
|
|
4,932 |
|
|
24,311 |
|
|
18,410 |
|
Other |
|
|
4,558 |
|
|
7,461 |
|
|
5,473 |
|
|
3,622 |
|
|
4,887 |
|
|
21,114 |
|
|
18,471 |
|
Total Noninterest Income (8) |
|
$ |
63,392 |
|
$ |
73,053 |
|
$ |
86,756 |
|
$ |
86,046 |
|
$ |
91,902 |
|
$ |
309,247 |
|
$ |
354,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
140,440 |
|
$ |
139,554 |
|
$ |
137,037 |
|
$ |
137,673 |
|
$ |
137,321 |
|
$ |
554,704 |
|
$ |
552,030 |
|
Occupancy expense |
|
|
22,412 |
|
|
22,490 |
|
|
22,759 |
|
|
21,840 |
|
|
22,915 |
|
|
89,501 |
|
|
92,225 |
|
Information services expense |
|
|
19,847 |
|
|
20,714 |
|
|
19,947 |
|
|
19,193 |
|
|
18,489 |
|
|
79,701 |
|
|
74,417 |
|
OREO and loan related expense (income) |
|
|
78 |
|
|
532 |
|
|
(3) |
|
|
(238) |
|
|
(740) |
|
|
369 |
|
|
2,029 |
|
Business development and staff related |
|
|
5,851 |
|
|
5,090 |
|
|
4,916 |
|
|
4,276 |
|
|
4,577 |
|
|
20,133 |
|
|
16,677 |
|
Amortization of intangibles |
|
|
8,027 |
|
|
7,837 |
|
|
8,847 |
|
|
8,494 |
|
|
8,517 |
|
|
33,205 |
|
|
35,192 |
|
Professional fees |
|
|
3,756 |
|
|
3,495 |
|
|
4,331 |
|
|
3,749 |
|
|
2,639 |
|
|
15,331 |
|
|
10,629 |
|
Supplies and printing expense |
|
|
2,411 |
|
|
2,621 |
|
|
2,400 |
|
|
2,189 |
|
|
2,179 |
|
|
9,621 |
|
|
9,659 |
|
|
|
|
6,589 |
|
|
6,300 |
|
|
5,332 |
|
|
4,812 |
|
|
4,965 |
|
|
23,033 |
|
|
17,982 |
|
Advertising and marketing |
|
|
2,669 |
|
|
2,170 |
|
|
2,286 |
|
|
1,763 |
|
|
2,375 |
|
|
8,888 |
|
|
7,959 |
|
Other operating expenses |
|
|
15,877 |
|
|
15,951 |
|
|
17,927 |
|
|
14,573 |
|
|
14,155 |
|
|
64,327 |
|
|
50,674 |
|
Merger and branch consolidation related expense |
|
|
1,542 |
|
|
13,679 |
|
|
5,390 |
|
|
10,276 |
|
|
6,645 |
|
|
30,888 |
|
|
67,242 |
|
Extinguishment of debt cost |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
11,706 |
|
Total Noninterest Expense |
|
$ |
229,499 |
|
$ |
240,433 |
|
$ |
231,169 |
|
$ |
228,600 |
|
$ |
224,037 |
|
$ |
929,701 |
|
$ |
948,421 |
|
Loans and Deposits
The following table presents a summary of the loan portfolio by type (dollars in thousands):
|
|
Ending Balance |
|
|||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|||||
LOAN PORTFOLIO |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
|||||
Construction and land development * † |
|
$ |
2,860,360 |
|
$ |
2,550,552 |
|
$ |
2,527,062 |
|
$ |
2,316,313 |
|
$ |
2,029,216 |
|
Investor commercial real estate* |
|
|
8,769,201 |
|
|
8,641,316 |
|
|
8,393,630 |
|
|
8,158,457 |
|
|
7,432,503 |
|
Commercial owner occupied real estate |
|
|
5,460,193 |
|
|
5,426,216 |
|
|
5,421,725 |
|
|
5,346,583 |
|
|
4,970,116 |
|
Commercial and industrial, excluding PPP |
|
|
5,303,379 |
|
|
4,962,616 |
|
|
4,760,355 |
|
|
4,447,279 |
|
|
3,516,485 |
|
Consumer real estate * |
|
|
6,475,210 |
|
|
5,977,120 |
|
|
5,505,531 |
|
|
4,988,736 |
|
|
4,806,958 |
|
Consumer/other |
|
|
1,299,415 |
|
|
1,263,362 |
|
|
1,279,790 |
|
|
1,179,697 |
|
|
928,240 |
|
Total loans, excluding PPP |
|
|
30,167,758 |
|
|
28,821,182 |
|
|
27,888,093 |
|
|
26,437,065 |
|
|
23,683,518 |
|
PPP loans |
|
|
10,104 |
|
|
15,121 |
|
|
47,173 |
|
|
119,362 |
|
|
244,648 |
|
Total Loans |
|
$ |
30,177,862 |
|
$ |
28,836,303 |
|
$ |
27,935,266 |
|
$ |
26,556,427 |
|
$ |
23,928,166 |
|
* Single family home construction-to-permanent loans originated by the Company's mortgage banking division are included in construction and land development category until completion. Investor commercial real estate loans include commercial non-owner occupied real estate and other income producing property. Consumer real estate includes consumer owner occupied real estate and home equity loans. |
|
† Includes single family home construction-to-permanent loans of |
|
|
Ending Balance |
|
|||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|||||
DEPOSITS |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
|||||
Noninterest-bearing checking |
|
$ |
13,168,656 |
|
$ |
13,660,244 |
|
$ |
14,337,018 |
|
$ |
14,052,332 |
|
$ |
11,498,840 |
|
Interest-bearing checking |
|
|
8,955,519 |
|
|
8,741,447 |
|
|
8,953,332 |
|
|
9,275,208 |
|
|
9,018,987 |
|
Savings |
|
|
3,464,351 |
|
|
3,602,560 |
|
|
3,616,819 |
|
|
3,479,743 |
|
|
3,350,547 |
|
Money market (8) |
|
|
8,342,111 |
|
|
8,369,826 |
|
|
8,823,025 |
|
|
9,015,186 |
|
|
8,376,380 |
|
Time deposits |
|
|
2,419,986 |
|
|
2,535,712 |
|
|
2,704,425 |
|
|
2,828,542 |
|
|
2,810,075 |
|
Total Deposits (8) |
|
$ |
36,350,623 |
|
$ |
36,909,789 |
|
$ |
38,434,619 |
|
$ |
38,651,011 |
|
$ |
35,054,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Deposits (excludes Time Deposits) (8) |
|
$ |
33,930,637 |
|
$ |
34,374,077 |
|
$ |
35,730,194 |
|
$ |
35,822,469 |
|
$ |
32,244,754 |
|
Asset Quality
|
|
Ending Balance |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Dollars in thousands) |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
|||||
NONPERFORMING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired nonaccrual loans and restructured loans on nonaccrual |
|
$ |
44,671 |
|
$ |
34,374 |
|
$ |
20,716 |
|
$ |
19,582 |
|
$ |
18,700 |
|
Accruing loans past due 90 days or more |
|
|
2,358 |
|
|
2,358 |
|
|
1,371 |
|
|
22,818 |
|
|
4,612 |
|
Non-acquired OREO and other nonperforming assets |
|
|
245 |
|
|
114 |
|
|
93 |
|
|
464 |
|
|
590 |
|
Total non-acquired nonperforming assets |
|
|
47,274 |
|
|
36,846 |
|
|
22,180 |
|
|
42,864 |
|
|
23,902 |
|
Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired nonaccrual loans and restructured loans on nonaccrual |
|
|
59,554 |
|
|
61,866 |
|
|
63,526 |
|
|
59,267 |
|
|
56,718 |
|
Accruing loans past due 90 days or more |
|
|
1,992 |
|
|
1,430 |
|
|
4,418 |
|
|
12,768 |
|
|
251 |
|
Acquired OREO and other nonperforming assets |
|
|
922 |
|
|
2,234 |
|
|
1,577 |
|
|
3,118 |
|
|
2,875 |
|
Total acquired nonperforming assets |
|
|
62,468 |
|
|
65,530 |
|
|
69,521 |
|
|
75,153 |
|
|
59,844 |
|
Total nonperforming assets |
|
$ |
109,742 |
|
$ |
102,376 |
|
$ |
91,701 |
|
$ |
118,017 |
|
$ |
83,746 |
|
|
|
Three Months Ended |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
|||||
ASSET QUALITY RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses as a percentage of loans |
|
|
1.18 % |
|
|
1.12 % |
|
|
1.14 % |
|
|
1.13 % |
|
|
1.26 % |
|
Allowance for credit losses as a percentage of loans, excluding PPP loans |
|
|
1.18 % |
|
|
1.14 % |
|
|
1.15 % |
|
|
1.14 % |
|
|
1.27 % |
|
Allowance for credit losses as a percentage of nonperforming loans |
|
|
328.29 % |
|
|
324.30 % |
|
|
355.11 % |
|
|
262.50 % |
|
|
375.94 % |
|
Net charge-offs (recoveries) as a percentage of average loans (annualized) |
|
|
0.01 % |
|
|
(0.02) % |
|
|
0.03 % |
|
|
0.04 % |
|
|
0.02 % |
|
Total nonperforming assets as a percentage of total assets |
|
|
0.25 % |
|
|
0.23 % |
|
|
0.20 % |
|
|
0.26 % |
|
|
0.20 % |
|
Nonperforming loans as a percentage of period end loans |
|
|
0.36 % |
|
|
0.35 % |
|
|
0.32 % |
|
|
0.43 % |
|
|
0.34 % |
|
Current Expected Credit Losses ("CECL")
Below is a table showing the roll forward of the ACL and UFC for the fourth quarter of 2022:
|
|
Allowance for Credit Losses ("ACL and UFC") |
|
||||||||||
|
|
NonPCD ACL |
|
PCD ACL |
|
Total ACL |
|
UFC |
|
||||
Ending balance |
|
$ |
270,919 |
|
$ |
53,479 |
|
$ |
324,398 |
|
$ |
52,991 |
|
Charge offs |
|
|
(3,783) |
|
|
— |
|
|
(3,783) |
|
|
— |
|
Acquired charge offs |
|
|
(331) |
|
|
(553) |
|
|
(884) |
|
|
— |
|
Recoveries |
|
|
2,290 |
|
|
— |
|
|
2,290 |
|
|
— |
|
Acquired recoveries |
|
|
827 |
|
|
677 |
|
|
1,504 |
|
|
— |
|
Provision (recovery) for credit losses |
|
|
39,684 |
|
|
(6,765) |
|
|
32,919 |
|
|
14,224 |
|
Ending balance |
|
$ |
309,606 |
|
$ |
46,838 |
|
$ |
356,444 |
|
$ |
67,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end loans (includes PPP Loans) |
|
$ |
28,748,131 |
|
$ |
1,429,731 |
|
$ |
30,177,862 |
|
|
N/A |
|
Reserve to Loans (includes PPP Loans) |
|
|
1.08 % |
|
|
3.28 % |
|
|
1.18 % |
|
|
N/A |
|
Period end loans (excludes PPP Loans) |
|
$ |
28,738,027 |
|
$ |
1,429,731 |
|
$ |
30,167,758 |
|
|
N/A |
|
Reserve to Loans (excludes PPP Loans) |
|
|
1.08 % |
|
|
3.28 % |
|
|
1.18 % |
|
|
N/A |
|
Unfunded commitments (off balance sheet) * |
|
|
|
|
|
|
|
|
|
|
$ |
10,173,471 |
|
Reserve to unfunded commitments (off balance sheet) |
|
|
|
|
|
|
|
|
|
|
|
0.66 % |
|
* Unfunded commitments exclude unconditionally cancelable commitments and letters of credit. |
Conference Call
The Company will host a conference call to discuss its fourth quarter results at
SouthState Corporation is a financial services company headquartered in
Non-GAAP Measures
Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures. Although other companies may use calculation methods that differ from those used by
(Dollars and shares in thousands, except per share data) |
|
Three Months Ended |
|
|||||||||||||||||
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (GAAP) |
|
$ |
143,502 |
|
|
$ |
133,043 |
|
|
$ |
119,175 |
|
|
$ |
100,329 |
|
|
$ |
106,846 |
|
Provision (recovery) for credit losses |
|
|
47,142 |
|
|
|
23,876 |
|
|
|
19,286 |
|
|
|
(8,449) |
|
|
|
(9,157) |
|
Tax provision |
|
|
39,253 |
|
|
|
38,035 |
|
|
|
32,941 |
|
|
|
27,084 |
|
|
|
28,272 |
|
Merger and branch consolidation related expense |
|
|
1,542 |
|
|
|
13,679 |
|
|
|
5,390 |
|
|
|
10,276 |
|
|
|
6,645 |
|
Securities gains |
|
|
— |
|
|
|
(30) |
|
|
|
— |
|
|
|
— |
|
|
|
(2) |
|
Pre-provision net revenue (PPNR) (Non-GAAP) |
|
$ |
231,439 |
|
|
$ |
208,603 |
|
|
$ |
176,792 |
|
|
$ |
129,240 |
|
|
$ |
132,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average asset balance (GAAP) |
|
$ |
44,429,894 |
|
|
$ |
44,985,713 |
|
|
$ |
45,576,742 |
|
|
$ |
42,907,268 |
|
|
$ |
41,223,712 |
|
PPNR ROAA |
|
|
2.07 |
% |
|
|
1.84 |
% |
|
|
1.56 |
% |
|
|
1.22 |
% |
|
|
1.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding |
|
|
76,327 |
|
|
|
76,182 |
|
|
|
76,094 |
|
|
|
72,111 |
|
|
|
70,290 |
|
PPNR per weighted-average common shares outstanding |
|
$ |
3.03 |
|
|
$ |
2.74 |
|
|
$ |
2.32 |
|
|
$ |
1.79 |
|
|
$ |
1.89 |
|
(Dollars in thousands) |
|
Three Months Ended |
|
|||||||||||||||||
CORE NET INTEREST INCOME (NON-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income (GAAP) (8) |
|
$ |
396,004 |
|
|
$ |
362,334 |
|
|
$ |
315,815 |
|
|
$ |
261,518 |
|
|
$ |
258,096 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accretion on acquired loans |
|
|
7,350 |
|
|
|
9,550 |
|
|
|
12,770 |
|
|
|
6,741 |
|
|
|
7,707 |
|
Total deferred fees on PPP loans |
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
983 |
|
|
|
5,655 |
|
Core net interest income (Non-GAAP) |
|
$ |
388,654 |
|
|
$ |
352,784 |
|
|
$ |
303,037 |
|
|
$ |
253,794 |
|
|
$ |
244,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN ("NIM"), TAX EQUIVALENT (NON-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) (8) |
|
$ |
396,004 |
|
|
$ |
362,334 |
|
|
$ |
315,815 |
|
|
$ |
261,518 |
|
|
$ |
258,096 |
|
Total average interest-earning assets (8) |
|
|
39,655,736 |
|
|
|
40,451,174 |
|
|
|
40,899,365 |
|
|
|
38,564,661 |
|
|
|
36,895,644 |
|
NIM, non-tax equivalent (8) |
|
|
3.96 |
% |
|
|
3.55 |
% |
|
|
3.10 |
% |
|
|
2.75 |
% |
|
|
2.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment (included in NIM, tax equivalent) |
|
|
2,397 |
|
|
|
2,345 |
|
|
|
2,249 |
|
|
|
1,885 |
|
|
|
1,734 |
|
Net interest income, tax equivalent (Non-GAAP) (8) |
|
$ |
398,401 |
|
|
$ |
364,679 |
|
|
$ |
318,064 |
|
|
$ |
263,403 |
|
|
$ |
259,830 |
|
NIM, tax equivalent (Non-GAAP) (8) |
|
|
3.99 |
% |
|
|
3.58 |
% |
|
|
3.12 |
% |
|
|
2.77 |
% |
|
|
2.79 |
% |
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
RECONCILIATION OF GAAP TO NON-GAAP |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||||
Adjusted Net Income (non-GAAP) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
143,502 |
|
|
$ |
133,043 |
|
|
$ |
119,175 |
|
|
$ |
100,329 |
|
|
$ |
106,846 |
|
|
$ |
496,049 |
|
|
$ |
475,543 |
|
Securities gains, net of tax |
|
|
— |
|
|
|
(24) |
|
|
|
— |
|
|
|
— |
|
|
|
(2) |
|
|
|
(24) |
|
|
|
(81) |
|
PCL - NonPCD loans and UFC, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,492 |
|
|
|
— |
|
|
|
13,492 |
|
|
|
— |
|
Merger and branch consolidation related expense, net of tax |
|
|
1,211 |
|
|
|
10,638 |
|
|
|
4,223 |
|
|
|
8,092 |
|
|
|
5,255 |
|
|
|
24,163 |
|
|
|
52,740 |
|
Extinguishment of debt cost, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,081 |
|
Adjusted net income (non-GAAP) |
|
$ |
144,713 |
|
|
$ |
143,657 |
|
|
$ |
123,398 |
|
|
$ |
121,913 |
|
|
$ |
112,099 |
|
|
$ |
533,680 |
|
|
$ |
537,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income per Common Share - Basic (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Basic (GAAP) |
|
$ |
1.90 |
|
|
$ |
1.76 |
|
|
$ |
1.58 |
|
|
$ |
1.40 |
|
|
$ |
1.53 |
|
|
$ |
6.65 |
|
|
$ |
6.76 |
|
Effect to adjust for securities gains |
|
|
— |
|
|
|
(0.00) |
|
|
|
— |
|
|
|
— |
|
|
|
(0.00) |
|
|
|
(0.00) |
|
|
|
(0.00) |
|
Effect to adjust for PCL - NonPCD loans and UFC, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.19 |
|
|
|
— |
|
|
|
0.19 |
|
|
|
— |
|
Effect to adjust for merger and branch consolidation related expense, net of tax |
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.06 |
|
|
|
0.12 |
|
|
|
0.08 |
|
|
|
0.32 |
|
|
|
0.74 |
|
Effect to adjust for extinguishment of debt cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.13 |
|
Adjusted net income per common share - Basic (non-GAAP) |
|
$ |
1.91 |
|
|
$ |
1.90 |
|
|
$ |
1.64 |
|
|
$ |
1.71 |
|
|
$ |
1.61 |
|
|
$ |
7.16 |
|
|
$ |
7.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income per Common Share - Diluted (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Diluted (GAAP) |
|
$ |
1.88 |
|
|
$ |
1.75 |
|
|
$ |
1.57 |
|
|
$ |
1.39 |
|
|
$ |
1.52 |
|
|
$ |
6.60 |
|
|
$ |
6.71 |
|
Effect to adjust for securities gains |
|
|
— |
|
|
|
(0.00) |
|
|
|
— |
|
|
|
— |
|
|
|
(0.00) |
|
|
|
(0.00) |
|
|
|
(0.00) |
|
Effect to adjust for PCL - NonPCD loans and UFC, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.19 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
— |
|
Effect to adjust for merger and branch consolidation related expense, net of tax |
|
|
0.02 |
|
|
|
0.14 |
|
|
|
0.05 |
|
|
|
0.11 |
|
|
|
0.07 |
|
|
|
0.32 |
|
|
|
0.74 |
|
Effect to adjust for extinguishment of debt cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.13 |
|
Adjusted net income per common share - Diluted (non-GAAP) |
|
$ |
1.90 |
|
|
$ |
1.89 |
|
|
$ |
1.62 |
|
|
$ |
1.69 |
|
|
$ |
1.59 |
|
|
$ |
7.10 |
|
|
$ |
7.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on Average Assets (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (GAAP) (8) |
|
|
1.28 |
% |
|
|
1.17 |
% |
|
|
1.05 |
% |
|
|
0.95 |
% |
|
|
1.03 |
% |
|
|
1.12 |
% |
|
|
1.19 |
% |
Effect to adjust for securities gains |
|
|
— |
% |
|
|
(0.00) |
% |
|
|
— |
% |
|
|
— |
% |
|
|
(0.00) |
% |
|
|
(0.00) |
% |
|
|
(0.00) |
% |
Effect to adjust for PCL - NonPCD loans and UFC, net of tax |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.13 |
% |
|
|
— |
% |
|
|
0.03 |
% |
|
|
— |
% |
Effect to adjust for merger and branch consolidation related expense, net of tax |
|
|
0.01 |
% |
|
|
0.10 |
% |
|
|
0.04 |
% |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.14 |
% |
Effect to adjust for extinguishment of debt cost |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.02 |
% |
Adjusted return on average assets (non-GAAP) (8) |
|
|
1.29 |
% |
|
|
1.27 |
% |
|
|
1.09 |
% |
|
|
1.15 |
% |
|
|
1.08 |
% |
|
|
1.20 |
% |
|
|
1.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on Average Common Equity (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity (GAAP) |
|
|
11.41 |
% |
|
|
10.31 |
% |
|
|
9.36 |
% |
|
|
8.24 |
% |
|
|
8.84 |
% |
|
|
9.84 |
% |
|
|
10.01 |
% |
Effect to adjust for securities gains |
|
|
— |
% |
|
|
(0.00) |
% |
|
|
— |
% |
|
|
— |
% |
|
|
(0.00) |
% |
|
|
(0.00) |
% |
|
|
(0.00) |
% |
Effect to adjust for PCL - NonPCD loans and UFC, net of tax |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
1.11 |
% |
|
|
— |
% |
|
|
0.27 |
% |
|
|
— |
% |
Effect to adjust for merger and branch consolidation related expense, net of tax |
|
|
0.09 |
% |
|
|
0.82 |
% |
|
|
0.33 |
% |
|
|
0.66 |
% |
|
|
0.44 |
% |
|
|
0.48 |
% |
|
|
1.11 |
% |
Effect to adjust for extinguishment of debt cost |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.19 |
% |
Adjusted return on average common equity (non-GAAP) |
|
|
11.50 |
% |
|
|
11.13 |
% |
|
|
9.69 |
% |
|
|
10.01 |
% |
|
|
9.28 |
% |
|
|
10.59 |
% |
|
|
11.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Common Tangible Equity (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity (GAAP) |
|
|
11.41 |
% |
|
|
10.31 |
% |
|
|
9.36 |
% |
|
|
8.24 |
% |
|
|
8.84 |
% |
|
|
9.84 |
% |
|
|
10.01 |
% |
Effect to adjust for intangible assets |
|
|
8.76 |
% |
|
|
7.68 |
% |
|
|
7.23 |
% |
|
|
5.73 |
% |
|
|
5.79 |
% |
|
|
7.32 |
% |
|
|
6.63 |
% |
Return on average tangible equity (non-GAAP) |
|
|
20.17 |
% |
|
|
17.99 |
% |
|
|
16.59 |
% |
|
|
13.97 |
% |
|
|
14.63 |
% |
|
|
17.16 |
% |
|
|
16.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on Average Common Tangible Equity (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity (GAAP) |
|
|
11.41 |
% |
|
|
10.31 |
% |
|
|
9.36 |
% |
|
|
8.24 |
% |
|
|
8.84 |
% |
|
|
9.84 |
% |
|
|
10.01 |
% |
Effect to adjust for securities gains |
|
|
— |
% |
|
|
(0.00) |
% |
|
|
— |
% |
|
|
— |
% |
|
|
(0.00) |
% |
|
|
(0.00) |
% |
|
|
(0.00) |
% |
Effect to adjust for PCL - NonPCD loans and UFC, net of tax |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
1.11 |
% |