NYSE$SSB

SouthState Bank Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

SouthState reported a net loss due to initial provision for credit losses on acquired NonPCD loans and merger-related costs, but underlying operating performance remained strong with record revenues on a combined historical basis.

South State Corporation reported a consolidated net loss of ($84.9) million, or ($1.96) per diluted common share, for the second quarter of 2020. The net loss was primarily due to the initial provision for credit losses on acquired non-purchase credit deteriorated (NonPCD) loans and merger-related costs. However, the company highlighted strong underlying operating performance, including record revenues on a combined historical basis.

  • Closed the merger of equals with CenterState Bank Corporation on June 7th.
  • Reported a net loss of ($85 million) after recording a total loan loss provision expense of $151 million and $40 million in merger-related costs.
  • Pre-Provision Net Revenue (PPNR) was $157 million, for a 1.68% PPNR ROAA on a combined historical basis.
  • Credit metrics remained strong with minimal net charge-offs of $101,000, or 0.00% annualized.

Headline financials

Total Revenue

$217M

Previous: $165M+31.6%
EPS (adj)

$0.89

Previous: $1.40-36.4%
Efficiency Ratio

80.5%

No prior period
Adj. Efficiency Ratio

61.9%

No prior period
Equity to Assets

11.9%

No prior period
Tangible Eq/Assets

7.6%

No prior period
Tier 1 Leverage

13.3%

No prior period
Tier 1 Common Equity

10.7%

No prior period
Tier 1 Risk Capital

10.7%

No prior period
Total Risk Capital

12.9%

No prior period
Capital Expenditures

-$9.08M

Previous: -$8.12M-11.9%
Free Cash Flow

-$94M

Previous: $33.3M-382.0%
Net Income

-$84.9M

Previous: $41.5M-304.9%
Operating Income

$91.5M

Previous: $115M-20.5%
Gross Profit

$187M

Previous: $161M+16.3%
Cash & Equivalents

$1.25B

Previous: $852M+47.2%
Total Assets

$37.7B

Previous: $15.7B+140.5%
Stock-Based Comp

$11.7M

Previous: $2.23M+426.8%

Revenue & EPS history

SouthState · Revenue · Quarterly

$217M

Q2 2020+31.6%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

SouthState · $54.3M total across 6 segments · Q2 2020

  • Mortgage Banking
    $18.4M
  • Deposit Account Fees
    $16.7M
  • Capital Markets
    $10.1M
  • Trust & Investment
    $7.14M
  • BOLI Income
    $1.38M
  • Other Income
    $711K

Forward guidance

The company is now fully focused on the integration and conversion aspects of the combined company and expects the core conversion to occur in the second quarter of 2021.

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 Q2 2020

Historical avgQ2 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro