NYSE$SSB

SouthState Bank Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

SouthState reported a good first quarter, demonstrating strength across the company with solid revenue, managed expenses, and strong asset quality. The acquisition of Atlantic Capital was completed, expanding presence in Atlanta and the Southeast.

SouthState Corporation reported a solid first quarter in 2022, with net income of $100.3 million, or $1.39 per diluted common share. Adjusted net income (non-GAAP) totaled $121.9 million, or $1.69 per diluted share. The company closed the Atlantic Capital acquisition on March 1, 2022, which is expected to contribute to future growth.

  • Reported EPS was $1.39, and adjusted EPS (non-GAAP) was $1.69.
  • Net income was $100.3 million, and adjusted net income (non-GAAP) was $121.9 million.
  • Net interest income totaled $261.5 million.
  • Loan production, excluding legacy ACBI production, was $2.6 billion.

Headline financials

Total Revenue

$348M

Previous: $358M-3.0%
EPS (adj)

$1.69

Previous: $2.17-22.1%
Adj. Efficiency Ratio

60.0%

Previous: 58.3%+3.1%
ROAA

0.9%

Previous: 1.6%-39.1%
Adj. ROAA

1.1%

No prior period
ROE

8.2%

No prior period
Adj. ROE

10.0%

No prior period
ROTCE

14.0%

No prior period
Adj. ROTCE

16.8%

No prior period
Dividend Payout

33.7%

No prior period
Equity to Assets

11.2%

No prior period
Tangible Eq/Assets

7.0%

No prior period
Tier 1 Leverage

8.5%

Previous: 8.5%+0.0%
Tier 1 Common Equity

11.4%

Previous: 12.2%-6.6%
Tier 1 Risk Capital

11.4%

Previous: 12.2%-6.6%
Total Risk Capital

13.3%

Previous: 14.5%-8.3%
Capital Expenditures

-$4.98M

Previous: -$5.58M+10.7%
Free Cash Flow

$95.3M

Previous: $141M-32.6%
Net Income

$100M

Previous: $147M-31.7%
Operating Income

$250M

Previous: $219M+14.0%
Gross Profit

$326M

Previous: $307M+5.9%
Cash & Equivalents

$618M

Previous: $759M-18.6%
Total Assets

$46.2B

Previous: $39.7B+16.3%
Stock-Based Comp

$8.49M

Previous: $6.09M+39.3%

Revenue & EPS history

SouthState · Revenue · Quarterly

$348M

Q1 2022-3%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

SouthState · $86.1M total across 6 segments · Q1 2022

  • Deposit Account Fees
    $28.9M
  • Capital Markets
    $28M
  • Mortgage Banking
    $10.6M
  • Trust & Investment
    $9.72M
  • BOLI Income
    $5.26M
  • Other Income
    $3.62M

Forward guidance

The Company announced it will be modifying its consumer overdraft program to eliminate NSF fees as well as transfer fees to cover overdrafts. It will also introduce a deposit product with no overdraft fees. The changes will be implemented starting in the third quarter and are estimated to reduce diluted annual earnings per share by approximately 8 to 10 cents.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.1%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.0%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+6.1%

Q3 2020

Best reaction

-9.4%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-1.6%-3.6%
Q4 2025-0.4%+0.4%+4.9%
Q3 2025-4.0%-4.4%-6.2%
Q2 2025-2.2%-1.0%+3.8%
Q1 2025-2.7%-3.3%-2.4%
Q4 2024+5.2%+8.1%+0.7%
Q3 2024+0.9%+1.3%+12.1%
Q2 2024+4.3%+5.9%+3.6%
Q1 2024-2.7%-5.5%-3.7%
Q4 2023+2.4%+4.9%+0.1%
Q3 2023+1.9%+2.5%+14.2%
Q2 2023-0.7%-1.1%-10.6%
Q1 2023+4.9%-2.0%-1.1%
Q4 2022+0.8%+4.1%+6.5%
Q3 2022+3.8%+5.5%+2.6%
Q2 2022+1.8%-2.1%-3.2%
Q1 2022+1.8%+2.7%+6.5%
Q4 2021+2.2%-0.6%+6.2%
Q3 2021-0.5%+6.7%+0.6%
Q2 2021-3.0%-3.2%-6.4%
Q1 2021+0.7%+1.0%+5.8%
Q4 2020-5.7%-9.0%+1.6%
Q3 2020+6.1%+11.6%+21.8%
Q2 2020-2.6%+1.3%+16.8%
Q1 2020+3.8%+11.1%-8.7%
Q4 2019-9.4%-11.6%-13.5%
Q3 2019+2.8%+3.3%+6.7%
Q2 2019+1.3%-2.3%-5.8%
Q1 2019+1.5%+2.3%-6.5%
Q4 2018+1.5%+2.2%+8.8%
Q3 2018-7.7%-15.0%-8.4%
Q2 2018-4.2%-5.0%-5.4%
Q1 2018-2.0%-0.2%+1.9%
Q4 2017-1.5%-1.6%-3.0%
Q3 2017+1.0%+1.9%-2.8%
Q2 2017-0.4%-0.6%-4.5%
Q1 2017+1.1%+2.2%-7.4%
Q4 2016-1.5%-4.5%-1.5%
Q3 2016-1.4%-1.0%+15.8%
Q2 2016+5.6%+6.5%+4.7%
Q1 2016+0.3%
Q4 2015+0.8%
Q3 2015+4.2%
Q2 2015-1.5%
Q1 2015-3.4%
Q4 2014-5.8%
Q3 2014+1.9%
Q2 2014+2.0%
Q1 2014+4.9%
Q4 2013-2.9%
Q3 2013+0.8%
Q2 2013-2.8%
Q1 2013-3.0%
Q4 2012+2.3%
Q3 2012-1.5%
Q2 2012+3.7%
Q1 2011-1.4%
Q1 2012+2.4%
Q4 2009+1.6%
Q4 2010+1.6%
Q4 2011+1.6%
Q3 2011-3.5%
Q3 2010-3.5%
Q2 2010-3.4%
Q2 2011-3.4%
Q1 2010+4.8%

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