8-K - SSB - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2022

SOUTHSTATE CORP ORATION

(Exact name of registrant as specified in its charter)

<br><br><br><br>	<br><br>	<br><br><br><br>
South Carolina<br><br>(State or Other Jurisdiction of<br><br>Incorporation)	001-12669<br><br>(Commission File Number)	57-0799315<br><br>(IRS Employer<br><br>Identification No.)

<br><br><br><br>		<br><br>
1101 First Street South , Suite 202<br><br>Winter Haven , FL<br><br>(Address of principal executive offices)		33880<br><br>(Zip Code)

( 863 ) 293-4710

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $2.50 per share	SSB	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02			Results of Operations and Financial Condition.

On July 28, 2022, SouthState Corporation (“SouthState” or the “Company”) issued a press release announcing its financial results for the three and six-month periods ended June 30, 2022, along with certain other financial information. Copies of the Company’s press release and presentation are attached as Exhibit 99.1 and 99.2, respectively, to this report and incorporated herein by reference.

SouthState will host a conference call on July 29, 2022 at 9 a.m. (ET) to discuss the Company’s second quarter 2022 results. Investors may call in (toll free) by dialing (844) 200-6205 within the U.S. and 929-526-1599 for all other locations (passcode 322914; host: Will Matthews, CFO).


Item 7.01				Regulation FD Disclosure.

On July 28, 2022, the Company also made available the presentation (“Presentation”) prepared for use with the press release during the earnings conference call on July 29, 2022. Attached hereto and incorporated herein as Exhibit 99.2 is the text of that presentation.

The information contained in this Item 7.01 of this Current Report, including the information set forth in the Presentation filed as Exhibit 99.2 to, and incorporated in, this Current Report, is being "furnished" and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.


Item 8.01		Other Events.

Third Quarter 2022 Shareholder Dividend

On July 28, 2022, SouthState announced that the Board of Directors of the Company increased its quarterly cash dividend on its common stock from $0.49 per share to $0.50 per share. The dividend is payable on August 19, 2022 to shareholders of record as of August 12, 2022.


Item 9.01		Financial Statements and Exhibits.

	(d)	Exhibits:

	Exhibit No.	Description

	Exhibit 99.1	Press Release, dated July 28, 2022

	Exhibit 99.2	Presentation for SouthState Corporation Earnings Call

	Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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 are based on, among other things, management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and SouthState. Words and phrases such as “may,” “approximately,” “continue,” “should,” “expects,” “projects,” “anticipates,” “is likely,” “look ahead,” “look forward,” “believes,” “will,” “intends,” “estimates,” “strategy,” “plan,” “could,” “potential,” “possible” and variations of such words and similar expressions are intended to identify such 2

forward-looking statements.

SouthState cautions readers that forward-looking statements are subject to certain risks, uncertainties and assumptions that are difficult to predict with regard to, among other things, timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: (1) economic downturn risk, potentially resulting in deterioration in the credit markets, inflation, greater than expected noninterest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential continued negative economic developments resulting from the Covid19 pandemic, or from federal spending cuts and/or one or more federal budget-related impasses or actions; (2) interest rate risk primarily resulting from the interest rate environment, rising interest rates, and their impact on the Bank’s earnings, including from the correspondent and mortgage divisions, housing demand, the market value of the bank’s loan and securities portfolios, and the market value of SouthState’s equity; (3) risks related to the merger and integration of SouthState and Atlantic Capital including, among others, (i) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized, (ii) the risk that the integration of Atlantic Capital’s operations into SouthState’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate Atlantic Capital’s businesses into SouthState’s businesses, (iii) the amount of the costs, fees, expenses and charges related to the merger, and (iv) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (4) risks relating to the continued impact of the Covid19 pandemic on the Company, including possible impact to the Company and its employees from contacting Covid19, and to efficiencies and the control environment due to the changing work environment and to our results of operations due to government stimulus and other interventions to mitigate the impact of the pandemic; (5) the impact of increasing digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on the Bank’s results of operations, customer base, expenses, suppliers and operations; (6) controls and procedures risk, including the potential failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures; (7) potential deterioration in real estate values; (8) the impact of competition with other financial institutions, including pricing pressures (including those resulting from the CARES Act) and the resulting impact, including as a result of compression to net interest margin; (9) risks relating to the ability to retain our culture and attract and retain qualified people; (10) 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; (11) risks related to the ability of the company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (12) liquidity risk affecting the Bank’s ability to meet its obligations when they come due; (13) risks associated with an anticipated increase in SouthState’s investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities SouthState desires to acquire are not available on terms acceptable to SouthState; (14) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (15) transaction risk arising from problems with service or product delivery; (16) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (17) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and including the impact of the CARES Act, the Consumer Financial Protection Bureau regulations, and the possibility of changes in accounting standards, policies, principles and practices, including changes in accounting principles relating to loan loss recognition (CECL); (18) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (19) reputation risk that adversely affects earnings or capital arising from negative public opinion; (20) cybersecurity risk related to the dependence of SouthState on internal computer systems and the technology of outside service providers, as well as the potential impacts of internal or external security breaches, which may subject the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (21) reputational and operational risks associated with environment, social and governance (ESG) matters, including the impact of recently issued proposed regulatory guidance and regulation relating to climate change; (22) greater than expected noninterest expenses; (23) excessive loan losses; (24) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the Atlantic Capital integration, and potential difficulties in maintaining relationships with key personnel; (25) reputational risk and possible higher than estimated reduced revenue from announced changes in the Bank’s consumer overdraft programs; (26) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (27) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations as well as the discretion of 3

the board of directors of SouthState, SouthState’s performance and other factors; (28) ownership dilution risk associated with potential acquisitions in which SouthState’s stock may be issued as consideration for an acquired company; (29) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash consideration; (30) major catastrophes such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including infectious disease outbreaks, such as the ongoing Covid19 pandemic, and the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on SouthState and its customers and other constituencies; (31) terrorist activities risk that results in loss of consumer confidence and economic disruptions; and (32) other factors that may affect future results of SouthState, as disclosed in SouthState’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by SouthState with the U.S. Securities and Exchange Commission (“SEC”) and available on the SEC’s website at http://www.sec.gov, any 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. SouthState 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. 4

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	SOUTHSTATE CORPORATION
	(Registrant)

	By:	/s/ William E. Matthews, V
		William E. Matthews, V
		Senior Executive Vice President and
		Chief Financial Officer

Dated: July 28, 2022

Exhibit 99.1

<br><br><br><br>
SouthState Corporation Reports Second Quarter 2022 Results<br><br>Declares an Increase in the Quarterly Cash Dividend	For Immediate Release
		Media Contact
		Jackie Smith, 803.231.3486

WINTER HAVEN, FL – July 28, 2022 – SouthState Corporation (NASDAQ: SSB) today released its unaudited results of operations and other financial information for the three-month and six-month periods ended June 30, 2022.

The Company reported consolidated net income of $1.57 per diluted common share for the three months ended June 30, 2022, compared to $1.39 per diluted common share for the three months ended March 31, 2022, and compared to $1.39 per diluted common share one year ago.

Adjusted net income (non-GAAP) totaled $1.62 per diluted share for the three months ended June 30, 2022, compared to $1.69 per diluted share for the three months ended March 31, 2022, and compared to $1.87 per diluted share one year ago. Adjusted net income in the second quarter of 2022 excludes $4.2 million of merger and branch consolidation related expense (after-tax).

“We are pleased to report very strong performance in the second quarter, with record pre-provision net revenue, robust loan growth, and continued strength in asset quality,” said John C. Corbett, Chief Executive Officer. “Our strong revenue growth in the quarter and limited expense growth combined to produce 12% operating leverage. We are also pleased that our pre-provision net revenue per diluted share rose almost 30% from Q1 levels.”

Highlights of the second quarter of 2022 include:

Returns

●	Reported and Adjusted Diluted Earnings per Share (“EPS”) of $1.57 and $1.62 (Non-GAAP), respectively
●	Net Income and Adjusted Net Income of $119.2 million and $123.4 million (Non-GAAP), respectively
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●	Return on Average Common Equity of 9.36%^^ and Reported and Adjusted Return on Average Tangible Common Equity of 16.6%^^ (Non-GAAP) and 17.2%^*^^^(Non-GAAP), respectively
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●	Return on Average Assets (“ROAA”) and Adjusted ROAA of 1.04%^^ and 1.08%^^ (Non-GAAP), respectively
---	---
●	Pre-Provision Net Revenue (“PPNR”) of $176.8 million (Non-GAAP), or 1.55%^*^ PPNR ROAA (Non-GAAP)
---	---
●	PPNR per weighted average diluted share (Non-GAAP) of $2.32, up nearly 30% from the prior quarter’s $1.79 and up 46% from $1.59 one year ago
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●	Book Value per Share of $66.64 decreased by $1.66 per share compared to the prior quarter primarily due to the $2.60 per share impact from the change in accumulated other comprehensive loss
---	---
●	Tangible Book Value (“TBV”) per Share of $39.47 (Non-GAAP), down $1.58, or 3.8% from the prior quarter
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●	Recorded a provision for credit losses of $19.3 million compared to a negative provision for credit losses of $8.4 million in the prior quarter
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Performance

●	Net Interest Income of $314.3 million; Core Net Interest Income (non-GAAP) (excluding loan accretion and deferred fees on PPP) increased $47.8 million from prior quarter
●	Net Interest Margin (“NIM”), non-tax equivalent and tax equivalent (non-GAAP) of 3.10% and 3.12%, respectively, up 0.35% from prior quarter
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●	Total deposit cost of 0.06%, up 1 basis point from prior quarter
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●	Noninterest Income of $88.3 million, up $2.2 million compared to the prior quarter, with a $4.8 million increase in fee income on deposit accounts offset by a $5.1 million decline in mortgage banking income
---	---
●	Noninterest Income represented 0.77% of average assets for the second quarter of 2022
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●	Noninterest Expense, excluding merger and branch consolidation related expense (Non-GAAP), increased $7.5 million compared to the prior quarter; salaries and employee benefits declined by $636 thousand
---	---
●	Efficiency ratio and adjusted efficiency ratio (non-GAAP) improved to 54.9% and 53.6%, respectively, from prior quarter’s 63.0% and 60.1%, respectively
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Balance Sheet / Credit

●	Fed funds and interest-earning cash of $4.2 billion represents 9.0% of assets
*	Annualized
---	---

●	Loan production† of $3.9 billion, excluding production by legacy Atlantic Capital Bancshares, Inc. (“ACBI”)
●	Loans, excluding PPP loans, increased $1.5 billion, or 22.0% annualized. Of the second quarter loan growth, 53% was commercial loan growth, led by commercial and industrial loans, and 47% was consumer growth, led by consumer real estate loans.
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●	Loans, excluding PPP loans, grew 12.3% over the last year
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●	Deposits increased $100.0 million, or 1.0% annualized, with core deposit growth totaling $224.1 million, or 2.5% annualized
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●	36.9% of total deposits are noninterest-bearing checking
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●	Net charge-offs of $2.3 million, or 0.03% annualized
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Subsequent Events

●	The Board of Directors of the Company increased its quarterly cash dividend on its common stock from $0.49 per share to $0.50 per share; the dividend is payable on August 19, 2022 to shareholders of record as of August 12, 2022

† Loan production indicates committed balance total

Financial Performance


	Three Months Ended										Six Months Ended
(Dollars in thousands, except per share data)	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Jun. 30,		Jun. 30,
INCOME STATEMENT	2022		2022		2021		2021		2021		2022		2021
Interest income
Loans, including fees (1)	$	272,000	$	233,617	$	238,310	$	246,065	$	246,177	$	505,617	$	506,144
Investment securities, trading securities, federal funds sold and securities
purchased under agreements to resell		53,659		36,847		29,071		25,384		21,364		90,506		39,873
Total interest income		325,659		270,464		267,381		271,449		267,541		596,123		546,017
Interest expense
Deposits		5,776		4,628		5,121		7,267		9,537		10,404		20,795
Federal funds purchased, securities sold under agreements
to repurchase, and other borrowings		5,604		4,362		4,156		4,196		4,874		9,966		10,094
Total interest expense		11,380		8,990		9,277		11,463		14,411		20,370		30,889
Net interest income		314,279		261,474		258,104		259,986		253,130		575,753		515,128
Provision (recovery) for credit losses		19,286		(8,449)		(9,157)		(38,903)		(58,793)		10,837		(117,213)
Net interest income after provision (recovery) for credit losses		294,993		269,923		267,261		298,889		311,923		564,916		632,341
Noninterest income		88,292		86,090		91,894		87,010		79,020		174,382		175,305
Noninterest expense
Pre-tax operating expense		225,779		218,324		217,392		214,672		218,707		444,103		437,409
Merger and branch consolidation related expense		5,390		10,276		6,645		17,618		32,970		15,666		42,979
Extinguishment of debt cost		—		—		—		—		11,706		—		11,706
Total noninterest expense		231,169		228,600		224,037		232,290		263,383		459,769		492,094
Income before provision for income taxes		152,116		127,413		135,118		153,609		127,560		279,529		315,552
Income taxes provision		32,941		27,084		28,272		30,821		28,600		60,025		69,643
Net income	$	119,175	$	100,329	$	106,846	$	122,788	$	98,960	$	219,504	$	245,909

Adjusted net income (non-GAAP) (2)
Net income (GAAP)	$	119,175	$	100,329	$	106,846	$	122,788	$	98,960	$	219,504	$	245,909
Securities gains, net of tax		—		—		(2)		(51)		(28)		—		(28)
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		4,223		8,092		5,255		14,083		25,578		12,314		33,402
Extinguishment of debt cost, net of tax		—		—		—		—		9,081		—		9,081
Adjusted net income (non-GAAP)	$	123,398	$	121,913	$	112,099	$	136,820	$	133,591	$	245,310	$	288,364

Basic earnings per common share	$	1.58	$	1.40	$	1.53	$	1.75	$	1.40	$	2.99	$	3.47
Diluted earnings per common share	$	1.57	$	1.39	$	1.52	$	1.74	$	1.39	$	2.96	$	3.44
Adjusted net income per common share - Basic (non-GAAP) (2)	$	1.64	$	1.71	$	1.61	$	1.95	$	1.89	$	3.34	$	4.07
Adjusted net income per common share - Diluted (non-GAAP) (2)	$	1.62	$	1.69	$	1.59	$	1.94	$	1.87	$	3.31	$	4.04
Dividends per common share	$	0.49	$	0.49	$	0.49	$	0.49	$	0.47	$	0.98	$	0.94
Basic weighted-average common shares outstanding		75,461,157		71,447,429		69,651,334		70,066,235		70,866,193		73,464,620		70,937,301
Diluted weighted-average common shares outstanding		76,094,198		72,110,746		70,289,971		70,575,726		71,408,888		74,103,640		71,444,631
Effective tax rate		21.66%		21.26%		20.92%		20.06%		22.42%		21.47%		22.07%

Performance and Capital Ratios


		Three Months Ended															Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,		Jun. 30,
		2022			2022			2021			2021			2021			2022		2021
PERFORMANCE RATIOS
Return on average assets (annualized)			1.04	%		0.95	%		1.02	%		1.20	%		1.00	%	1.00	%	1.27	%
Adjusted return on average assets (annualized) (non-GAAP) (2)			1.08	%		1.15	%		1.08	%		1.34	%		1.35	%	1.11	%	1.49	%
Return on average common equity (annualized)			9.36	%		8.24	%		8.84	%		10.21	%		8.38	%	8.81	%	10.52	%
Adjusted return on average common equity (annualized) (non-GAAP) (2)			9.69	%		10.01	%		9.28	%		11.37	%		11.31	%	9.85	%	12.34	%
Return on average tangible common equity (annualized) (non-GAAP) (3)			16.59	%		13.97	%		14.63	%		16.86	%		14.12	%	15.28	%	17.59	%
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)			17.15	%		16.79	%		15.30	%		18.68	%		18.74	%	16.97	%	20.46	%
Efficiency ratio (tax equivalent)			54.92	%		62.99	%		61.27	%		64.22	%		76.28	%	58.66	%	68.38	%
Adjusted efficiency ratio (non-GAAP) (4)			53.59	%		60.05	%		59.39	%		59.16	%		62.88	%	56.58	%	60.49	%
Dividend payout ratio (5)			31.03	%		33.71	%		32.02	%		27.94	%		33.65	%	32.26	%	27.12	%
Book value per common share		$	66.64		$	68.30		$	69.27		$	68.55		$	67.60
Tangible book value per common share (non-GAAP) (3)		$	39.47		$	41.05		$	44.62		$	43.98		$	43.07

CAPITAL RATIOS
Equity-to-assets			10.9	%		11.2	%		11.4	%		11.7	%		11.8	%
Tangible equity-to-tangible assets (non-GAAP) (3)			6.8	%		7.0	%		7.7	%		7.8	%		7.8	%
Tier 1 leverage (6) *			8.0	%		8.5	%		8.1	%		8.1	%		8.1	%
Tier 1 common equity (6) *			11.1	%		11.4	%		11.8	%		11.9	%		12.1	%
Tier 1 risk-based capital (6) *			11.1	%		11.4	%		11.8	%		11.9	%		12.1	%
Total risk-based capital (6) *			13.0	%		13.3	%		13.6	%		13.8	%		14.1	%
*	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.
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Balance Sheet


	Ending Balance
(Dollars in thousands, except per share and share data)	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,
BALANCE SHEET	2022		2022		2021		2021		2021
Assets
Cash and due from banks	$	561,516	$	588,372	$	476,653	$	597,321	$	529,434
Federal Funds Sold and interest-earning deposits with banks		4,160,583		5,444,234		6,366,494		5,701,002		5,875,078
Cash and cash equivalents		4,722,099		6,032,606		6,843,147		6,298,323		6,404,512

Trading securities, at fair value		88,088		74,234		77,689		61,294		89,925
Investment securities:
Securities held to maturity		2,806,465		2,827,769		1,819,901		1,641,485		1,189,265
Securities available for sale, at fair value		5,666,008		5,924,206		5,193,478		4,631,554		4,369,159
Other investments		179,815		179,258		160,568		160,592		160,607
Total investment securities		8,652,288		8,931,233		7,173,947		6,433,631		5,719,031
Loans held for sale		73,880		130,376		191,723		242,813		171,447
Loans:
Purchased credit deteriorated		1,707,592		1,939,033		1,987,322		2,255,874		2,434,259
Purchased non-credit deteriorated		6,908,234		7,633,824		5,890,069		6,554,647		7,457,950
Non-acquired		19,319,440		16,983,570		16,050,775		14,978,428		14,140,869
Less allowance for credit losses		(319,708)		(300,396)		(301,807)		(314,144)		(350,401)
Loans, net		27,615,558		26,256,031		23,626,359		23,474,805		23,682,677
Other real estate owned ("OREO")		1,431		3,290		2,736		3,687		5,039
Premises and equipment, net		562,781		568,332		558,499		569,817		568,473
Bank owned life insurance		953,970		942,922		783,049		778,552		773,452
Mortgage servicing rights		87,463		83,339		65,620		60,922		57,351
Core deposit and other intangibles		132,694		140,364		128,067		136,584		145,126
Goodwill		1,922,525		1,924,024		1,581,085		1,581,085		1,581,085
Other assets		1,394,645		1,114,790		928,111		1,262,195		1,177,751
Total assets	$	46,207,422	$	46,201,541	$	41,960,032	$	40,903,708	$	40,375,869

Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing	$	14,337,018	$	14,052,332	$	11,498,840	$	11,333,881	$	11,176,338
Interest-bearing		24,538,833		24,723,498		23,555,989		22,226,677		22,066,031
Total deposits		38,875,851		38,775,830		35,054,829		33,560,558		33,242,369
Federal funds purchased and securities
sold under agreements to repurchase		669,999		770,409		781,239		859,736		862,429
Other borrowings		392,460		405,553		327,066		326,807		351,548
Reserve for unfunded commitments		32,543		30,368		30,510		28,289		30,981
Other liabilities		1,196,144		1,044,973		963,448		1,335,377		1,130,919
Total liabilities		41,166,997		41,027,133		37,157,092		36,110,767		35,618,247

Shareholders' equity:
Common stock - $2.50 par value; authorized 160,000,000 shares		189,103		189,403		173,331		174,795		175,957
Surplus		4,195,976		4,214,897		3,653,098		3,693,622		3,720,946
Retained earnings		1,146,230		1,064,064		997,657		925,044		836,584
Accumulated other comprehensive (loss) income		(490,884)		(293,956)		(21,146)		(520)		24,136
Total shareholders' equity		5,040,425		5,174,408		4,802,940		4,792,941		4,757,623
Total liabilities and shareholders' equity	$	46,207,422	$	46,201,541	$	41,960,032	$	40,903,708	$	40,375,869

Common shares issued and outstanding		75,641,322		75,761,018		69,332,297		69,918,037		70,382,728

Net Interest Income and Margin


		Three Months Ended
		Jun. 30, 2022					Mar. 31, 2022					Jun. 30, 2021
(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		$	4,597,551	$	8,635	0.75%	$	5,678,147	$	2,852	0.20%	$	5,670,674	$	1,350	0.10%
Investment securities			8,880,419		45,024	2.03%		7,895,281		33,995	1.75%		5,371,985		20,014	1.49%
Loans held for sale			76,567		791	4.14%		110,542		869	3.19%		281,547		1,977	2.82%
Total loans, excluding PPP			27,055,042		271,003	4.02%		24,675,512		231,373	3.80%		22,588,076		225,664	4.01%
Total PPP loans			77,816		206	1.06%		167,541		1,375	3.33%		1,719,323		18,536	4.32%
Total loans held for investment			27,132,858		271,209	4.01%		24,843,053		232,748	3.80%		24,307,399		244,200	4.03%
Total interest-earning assets			40,687,395		325,659	3.21%		38,527,023		270,464	2.85%		35,631,605		267,541	3.01%
Noninterest-earning assets			5,160,394					4,419,309					4,201,147
Total Assets		$	45,847,789				$	42,946,332				$	39,832,752

Interest-Bearing Liabilities:
Transaction and money market accounts		$	18,316,890	$	3,836	0.08%	$	17,473,192	$	2,217	0.05%	$	15,453,940	$	4,513	0.12%
Savings deposits			3,548,192		143	0.02%		3,408,129		130	0.02%		2,995,871		453	0.06%
Certificates and other time deposits			2,776,478		1,797	0.26%		2,848,829		2,281	0.32%		3,408,778		4,571	0.54%
Federal funds purchased			333,326		628	0.76%		354,899		111	0.13%		520,585		112	0.09%
Repurchase agreements			403,008		153	0.15%		438,258		158	0.15%		394,056		211	0.21%
Other borrowings			405,241		4,823	4.77%		354,133		4,093	4.69%		368,897		4,551	4.95%
Total interest-bearing liabilities			25,783,135		11,380	0.18%		24,877,440		8,990	0.15%		23,142,127		14,411	0.25%
Noninterest-bearing liabilities ("Non-IBL")			14,955,329					13,131,727					11,951,384
Shareholders' equity			5,109,325					4,937,165					4,739,241
Total Non-IBL and shareholders' equity			20,064,654					18,068,892					16,690,625
Total Liabilities and Shareholders' Equity		$	45,847,789				$	42,946,332				$	39,832,752
Net Interest Income and Margin (Non-Tax Equivalent)				$	314,279	3.10%			$	261,474	2.75%			$	253,130	2.85%
Net Interest Margin (Tax Equivalent)						3.12%					2.77%					2.87%
Total Deposit Cost (without Debt and Other Borrowings)						0.06%					0.05%					0.12%
Overall Cost of Funds (including Demand Deposits)						0.12%					0.10%					0.17%

Total Accretion on Acquired Loans (1)				$	12,770				$	6,741				$	6,292
Total Deferred Fees on PPP Loans				$	8				$	983				$	14,232
Tax Equivalent Adjustment				$	2,249				$	1,885				$	1,424
(1)	The remaining loan discount on acquired loans to be accreted into loan interest income totals $89.0 million as of June 30, 2022.
---	---

Noninterest Income and Expense


	Three Months Ended										Six Months Ended
	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Jun. 30,		Jun. 30,
(Dollars in thousands)	2022		2022		2021		2021		2021		2022		2021
Noninterest Income:
Fees on deposit accounts	$	33,658	$	28,902	$	30,293	$	26,130	$	23,936	$	62,560	$	49,218
Mortgage banking income		5,480		10,594		12,044		15,560		10,115		16,074		36,995
Trust and investment services income		9,831		9,718		9,520		9,150		9,733		19,549		18,311
Securities gains, net		—		—		2		64		36		—		36
Correspondent banking and capital market income		27,604		27,994		30,216		25,164		25,877		55,598		54,625
Bank owned life insurance income		6,246		5,260		4,932		5,132		5,047		11,506		8,346
Other		5,473		3,622		4,887		5,810		4,276		9,095		7,774
Total Noninterest Income	$	88,292	$	86,090	$	91,894	$	87,010	$	79,020	$	174,382	$	175,305

Noninterest Expense:
Salaries and employee benefits	$	137,037	$	137,673	$	137,321	$	136,969	$	137,379	$	274,710	$	277,740
Occupancy expense		22,759		21,840		22,915		23,135		22,844		44,599		46,175
Information services expense		19,947		19,193		18,489		18,061		19,078		39,140		37,867
OREO and loan related (income) expense		(3)		(238)		(740)		1,527		240		(241)		1,242
Business development and staff related		4,916		4,276		4,577		4,424		4,305		9,192		7,676
Amortization of intangibles		8,847		8,494		8,517		8,543		8,968		17,341		18,132
Professional fees		4,331		3,749		2,639		2,415		2,301		8,080		5,575
Supplies and printing expense		2,400		2,189		2,179		2,310		2,500		4,589		5,170
FDIC assessment and other regulatory charges		5,332		4,812		4,965		4,245		4,931		10,144		8,772
Advertising and marketing		2,286		1,763		2,375		2,185		1,659		4,049		3,399
Other operating expenses		17,927		14,573		14,155		10,858		14,502		32,500		25,661
Merger and branch consolidation related expense		5,390		10,276		6,645		17,618		32,970		15,666		42,979
Extinguishment of debt cost		—		—		—		—		11,706		—		11,706
Total Noninterest Expense	$	231,169	$	228,600	$	224,037	$	232,290	$	263,383	$	459,769	$	492,094

Loans and Deposits

The following table presents a summary of the loan portfolio by type (dollars in thousands):


	Ending Balance
(Dollars in thousands)	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,
LOAN PORTFOLIO	2022		2022		2021		2021		2021
Construction and land development * †	$	2,527,062	$	2,316,313	$	2,029,216	$	2,032,731	$	1,947,646
Investor commercial real estate*		8,393,630		8,158,457		7,432,503		7,131,192		7,094,109
Commercial owner occupied real estate		5,421,725		5,346,583		4,970,116		4,988,490		4,895,189
Commercial and industrial, excluding PPP		4,760,355		4,447,279		3,516,485		3,458,520		3,121,625
Consumer real estate *		5,505,531		4,988,736		4,806,958		4,733,567		4,748,693
Consumer/other		1,279,790		1,179,697		928,240		943,243		907,181
Total loans, excluding PPP		27,888,093		26,437,065		23,683,518		23,287,743		22,714,443
PPP loans		47,173		119,362		244,648		501,206		1,318,635
Total Loans	$	27,935,266	$	26,556,427	$	23,928,166	$	23,788,949	$	24,033,078

* 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 $795.7 million, $733.7 million, $686.5 million, $665.0 million and $599.4 million for the quarters ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.


	Ending Balance
(Dollars in thousands)	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,
DEPOSITS	2022		2022		2021		2021		2021
Noninterest-bearing checking	$	14,337,018	$	14,052,332	$	11,498,840	$	11,333,881	$	11,176,338
Interest-bearing checking		8,953,332		9,275,208		9,018,987		7,920,236		7,651,433
Savings		3,616,819		3,479,743		3,350,547		3,201,543		3,051,229
Money market		9,264,257		9,140,005		8,376,380		8,110,162		8,024,117
Time deposits		2,704,425		2,828,542		2,810,075		2,994,736		3,339,252
Total Deposits	$	38,875,851	$	38,775,830	$	35,054,829	$	33,560,558	$	33,242,369

Core Deposits (excludes Time Deposits)	$	36,171,426	$	35,947,288	$	32,244,754	$	30,565,822	$	29,903,117

Asset Quality


	Ending Balance
	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,
(Dollars in thousands)	2022		2022		2021		2021		2021
NONPERFORMING ASSETS:
Non-acquired
Non-acquired nonaccrual loans and restructured loans on nonaccrual	$	20,716	$	19,582	$	18,700	$	23,800	$	16,065
Accruing loans past due 90 days or more		1,371		22,818		4,612		1,729		559
Non-acquired OREO and other nonperforming assets		93		464		590		365		695
Total non-acquired nonperforming assets		22,180		42,864		23,902		25,894		17,319
Acquired
Acquired nonaccrual loans and restructured loans on nonaccrual		63,526		59,267		56,718		64,583		69,053
Accruing loans past due 90 days or more		4,418		12,768		251		89		—
Acquired OREO and other nonperforming assets		1,577		3,118		2,875		3,804		4,777
Total acquired nonperforming assets		69,521		75,153		59,844		68,476		73,830
Total nonperforming assets	$	91,701	$	118,017	$	83,746	$	94,370	$	91,149


	Three Months Ended
	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,
	2022		2022		2021		2021		2021
ASSET QUALITY RATIOS:
Allowance for credit losses as a percentage of loans		1.14%		1.13%		1.26%		1.32%		1.46%
Allowance for credit losses as a percentage of loans, excluding PPP loans		1.15%		1.14%		1.27%		1.35%		1.54%
Allowance for credit losses as a percentage of nonperforming loans		355.11%		262.50%		375.94%		348.27%		408.98%
Net charge-offs as a percentage of average loans (annualized)		0.03%		0.04%		0.02%		0.00%		0.03%
Total nonperforming assets as a percentage of total assets		0.20%		0.26%		0.20%		0.23%		0.23%
Nonperforming loans as a percentage of period end loans		0.32%		0.43%		0.34%		0.38%		0.36%

Current Expected Credit Losses (“CECL”)

Below is a table showing the roll forward of the ACL and UFC for the second quarter of 2022:


	Allowance for Credit Losses ("ACL and UFC")
	NonPCD ACL		PCD ACL		Total ACL		UFC
Ending balance 3/31/2022	$	227,829	$	72,567	$	300,396	$	30,368
ACL - Adjustment for PCD loans from ACBI		—		4,540		4,540		—
Charge offs		(3,215)		—		(3,215)		—
Acquired charge offs		(637)		(2,311)		(2,948)		—
Recoveries		1,166		—		1,166		—
Acquired recoveries		1,188		1,470		2,658		—
Provision (recovery) for credit losses		31,097		(13,986)		17,111		2,175
Ending balance 6/30/2022	$	257,428	$	62,280	$	319,708	$	32,543

Period end loans (includes PPP Loans)	$	26,227,674	$	1,707,592	$	27,935,266		N/A
Reserve to Loans (includes PPP Loans)		0.98%		3.65%		1.14%		N/A
Period end loans (excludes PPP Loans)	$	26,180,501	$	1,707,592	$	27,888,093		N/A
Reserve to Loans (excludes PPP Loans)		0.98%		3.65%		1.15%		N/A
Unfunded commitments (off balance sheet) *							$	8,204,567
Reserve to unfunded commitments (off balance sheet)								0.40%

* Unfunded commitments exclude unconditionally cancelable commitments and letters of credit.

Conference Call

The Company will host a conference call to discuss its second quarter results at 9:00 a.m. Eastern Time on July 29, 2022. Callers wishing to participate may call toll-free by dialing 844-200-6205. The number for international participants is (929) 526-1599. The conference ID number is 322914. Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com. An audio replay of the live webcast is expected to be available by the evening of July 29, 2022 on the Investor Relations section of SouthStateBank.com.

SouthState Corporation is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the Company’s nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas and Virginia. The Bank also serves clients coast to coast through its correspondent banking division. Additional information is available at SouthStateBank.com.

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. 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.


(Dollars in thousands, except per share data)	Three Months Ended
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP)	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021
Net income (GAAP)	$	119,175		$	100,329		$	106,846		$	122,788		$	98,960
Provision (recovery) for credit losses		19,286			(8,449)			(9,157)			(38,903)			(58,793)
Tax provision		32,941			27,084			28,272			30,821			28,600
Merger and branch consolidation related expense		5,390			10,276			6,645			17,618			32,970
Extinguishment of debt costs		—			—			—			—			11,706
Securities gains		—			—			(2)			(64)			(36)
Pre-provision net revenue (PPNR) (Non-GAAP)	$	176,792		$	129,240		$	132,604		$	132,260		$	113,407

Average asset balance (GAAP)	$	45,847,789		$	42,946,332		$	41,359,708		$	40,593,766		$	39,832,752
PPNR ROAA		1.55	%		1.22	%		1.27	%		1.29	%		1.14	%

Diluted weighted-average common shares outstanding		76,094			72,111			70,290			70,576			71,409
PPNR per weighted-average common shares outstanding	$	2.32		$	1.79		$	1.89		$	1.87		$	1.59


(Dollars in thousands)	Three Months Ended
CORE NET INTEREST INCOME (NON-GAAP)	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021
Net interest income (GAAP)	$	314,279		$	261,474		$	258,104		$	259,986		$	253,130
Less:
Total accretion on acquired loans		12,770			6,741			7,707			5,243			6,292
Total deferred fees on PPP loans		8			983			5,655			16,369			14,232
Core net interest income (Non-GAAP)	$	301,501		$	253,750		$	244,742		$	238,374		$	232,606

NET INTEREST MARGIN ("NIM"), TAX EQUIVALENT (NON-GAAP)
Net interest income (GAAP)	$	314,279		$	261,474		$	258,104		$	259,986		$	253,130
Total average interest-earning assets		40,687,395			38,527,023			37,031,640			36,218,437			35,631,605
NIM, non-tax equivalent		3.10	%		2.75	%		2.77	%		2.85	%		2.85	%

TEFRA (included in NIM, tax equivalent)		2,249			1,885			1,734			1,477			1,424
Net interest income, tax equivalent (Non-GAAP)	$	316,528		$	263,359		$	259,838		$	261,463		$	254,554
NIM, tax equivalent (Non-GAAP)		3.12	%		2.77	%		2.78	%		2.86	%		2.87	%


	Three Months Ended															Six Months Ended
(Dollars in thousands, except per share data)	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
RECONCILIATION OF GAAP TO NON-GAAP	2022			2022			2021			2021			2021			2022			2021
Adjusted Net Income (non-GAAP) (2)
Net income (GAAP)	$	119,175		$	100,329		$	106,846		$	122,788		$	98,960		$	219,504		$	245,909
Securities gains, net of tax		—			—			(2)			(51)			(28)			—			(28)
PCL - NonPCD loans and UFC, net of tax		—			13,492			—			—			—			13,492			—
Merger and branch consolidation related expense, net of tax		4,223			8,092			5,255			14,083			25,578			12,314			33,402
Extinguishment of debt cost, net of tax		—			—			—			—			9,081			—			9,081
Adjusted net income (non-GAAP)	$	123,398		$	121,913		$	112,099		$	136,820		$	133,591		$	245,310		$	288,364

Adjusted Net Income per Common Share - Basic (2)
Earnings per common share - Basic (GAAP)	$	1.58		$	1.40		$	1.53		$	1.75		$	1.40		$	2.99		$	3.47
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		0.06			0.12			0.08			0.20			0.36			0.17			0.47
Effect to adjust for extinguishment of debt cost		—			—			—			—			0.13			—			0.13
Adjusted net income per common share - Basic (non-GAAP)	$	1.64		$	1.71		$	1.61		$	1.95		$	1.89		$	3.34		$	4.07

Adjusted Net Income per Common Share - Diluted (2)
Earnings per common share - Diluted (GAAP)	$	1.57		$	1.39		$	1.52		$	1.74		$	1.39		$	2.96		$	3.44
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		0.05			0.11			0.07			0.20			0.35			0.17			0.47
Effect to adjust for extinguishment of debt cost		—			—			—			—			0.13			—			0.13
Adjusted net income per common share - Diluted (non-GAAP)	$	1.62		$	1.69		$	1.59		$	1.94		$	1.87		$	3.31		$	4.04

Adjusted Return on Average Assets (2)
Return on average assets (GAAP)		1.04	%		0.95	%		1.02	%		1.20	%		1.00	%		1.00	%		1.27	%
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	%		—	%		—	%		—	%		0.06	%		—	%
Effect to adjust for merger and branch consolidation related expense, net of tax		0.04	%		0.07	%		0.06	%		0.14	%		0.26	%		0.05	%		0.17	%
Effect to adjust for extinguishment of debt cost		—	%		—	%		—	%		—	%		0.09	%		—	%		0.05	%
Adjusted return on average assets (non-GAAP)		1.08	%		1.15	%		1.08	%		1.34	%		1.35	%		1.11	%		1.49	%

Adjusted Return on Average Common Equity (2)
Return on average common equity (GAAP)		9.36	%		8.24	%		8.84	%		10.21	%		8.38	%		8.81	%		10.52	%
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	%		—	%		—	%		—	%		0.54	%		—	%
Effect to adjust for merger and branch consolidation related expense, net of tax		0.33	%		0.66	%		0.44	%		1.16	%		2.16	%		0.50	%		1.43	%
Effect to adjust for extinguishment of debt cost		—	%		—	%		—	%		—	%		0.77	%		—	%		0.39	%
Adjusted return on average common equity (non-GAAP)		9.69	%		10.01	%		9.28	%		11.37	%		11.31	%		9.85	%		12.34	%

Return on Average Common Tangible Equity (3)
Return on average common equity (GAAP)		9.36	%		8.24	%		8.84	%		10.21	%		8.38	%		8.81	%		10.52	%
Effect to adjust for intangible assets		7.23	%		5.73	%		5.79	%		6.65	%		5.74	%		6.47	%		7.07	%
Return on average tangible equity (non-GAAP)		16.59	%		13.97	%		14.63	%		16.86	%		14.12	%		15.28	%		17.59	%

Adjusted Return on Average Common Tangible Equity (2) (3)
Return on average common equity (GAAP)		9.36	%		8.24	%		8.84	%		10.21	%		8.38	%		8.81	%		10.52	%
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	%		—	%		—	%		—	%		0.54	%		—	%
Effect to adjust for merger and branch consolidation related expense, net of tax		0.33	%		0.66	%		0.43	%		1.17	%		2.16	%		0.49	%		1.43	%
Effect to adjust for extinguishment of debt cost		—	%		—	%		—	%		—	%		0.77	%		—	%		0.39	%
Effect to adjust for intangible assets		7.46	%		6.78	%		6.03	%		7.30	%		7.43	%		7.12	%		8.12	%
Adjusted return on average common tangible equity (non-GAAP)		17.15	%		16.79	%		15.30	%		18.68	%		18.74	%		16.97	%		20.46	%

Adjusted Efficiency Ratio (4)
Efficiency ratio		54.92	%		62.99	%		61.27	%		64.22	%		76.28	%		58.66	%		68.38	%
Effect to adjust for merger and branch consolidation related expense		(1.33)	%		(2.94)	%		(1.89)	%		(5.06)	%		(13.38)	%		(2.08)	%		(7.89)	%
Adjusted efficiency ratio		53.59	%		60.05	%		59.39	%		59.16	%		62.88	%		56.58	%		60.49	%

Tangible Book Value Per Common Share (3)
Book value per common share (GAAP)	$	66.64		$	68.30		$	69.27		$	68.55		$	67.60
Effect to adjust for intangible assets		(27.17)			(27.25)			(24.65)			(24.57)			(24.53)
Tangible book value per common share (non-GAAP)	$	39.47		$	41.05		$	44.62		$	43.98		$	43.07

Tangible Equity-to-Tangible Assets (3)
Equity-to-assets (GAAP)		10.91	%		11.20	%		11.45	%		11.72	%		11.78	%
Effect to adjust for intangible assets		(4.15)	%		(4.15)	%		(3.76)	%		(3.87)	%		(3.94)	%
Tangible equity-to-tangible assets (non-GAAP)		6.76	%		7.05	%		7.69	%		7.85	%		7.84	%

Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications had no impact on net income or equity as previously reported.

Footnotes to tables:

(1)	Includes loan accretion (interest) income related to the discount on acquired loans of $12.8 million, $6.7 million, $7.7 million, $5.2 million and $6.3 million, respectively, during the five quarters above.
(2)	Adjusted earnings, adjusted return on average assets, adjusted EPS, and adjusted return on average equity are non-GAAP measures and exclude the gains or losses on sales of securities, merger and branch consolidation related expense, initial PCL on nonPCD loans and unfunded commitments from acquisitions and extinguishment of debt cost. 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 $5.4 million, $10.3 million, $6.6 million, $17.6 million and $33.0 million for the quarters ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively; and (b) net securities gains of $2,000, $64,000, and $36,000 for the quarters ended December 31, 2021, September 30, 2021, and June 30, 2021, respectively; (c) initial PCL on nonPCD loans and unfunded commitments acquired from ACBI of $17.1 million for the quarter ended March 31, 2022; and (d) extinguishment of debt cost of $11.7 million for the quarter ended June 30, 2021.
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(3)	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.
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(4)	Adjusted efficiency ratio is calculated by taking the noninterest expense excluding merger and branch consolidation related expense and amortization of intangible assets, divided by net interest income and noninterest income excluding securities gains (losses). The pre-tax amortization expenses of intangible assets were $8.8 million, $8.5 million, $8.5 million, $8.5 million and $9.0 million, for the quarters ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.
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(5)	The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period.
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(6)	June 30, 2022 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.
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(7)	Loan data excludes mortgage loans held for sale.
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Cautionary Statement Regarding Forward Looking Statements

on Form 8-K, filed by SouthState with the U.S. Securities and Exchange Commission (“SEC”) and available on the SEC’s website at http://www.sec.gov, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward-looking statements.

Exhibit 99.2

Earnings Call 2Q 2022 July 29, 2022<br>Exhibit 99.2
DISCLAIMER2Statementsincludedinthiscommunication,whicharenothistoricalinnatureareintendedtobe,andareherebyidentifiedas,forward-lookingstatementsforpurposesofthesafeharborprovidedbySection27AoftheSecuritiesActof1933andSection21EoftheSecuritiesExchangeActof1934.Forward-lookingstatementsarebasedon,amongotherthings,management’sbeliefs,assumptions,currentexpectations,estimatesandprojectionsaboutthefinancialservicesindustry,theeconomyandSouthState.Wordsandphrasessuchas“may,”“approximately,”“continue,”“should,”“expects,”“projects,”“anticipates,”“islikely,”“lookahead,”“lookforward,”“believes,”“will,”“intends,”“estimates,”“strategy,”“plan,”“could,”“potential,”“possible”andvariationsofsuchwordsandsimilarexpressionsareintendedtoidentifysuchforward-lookingstatements.<br>SouthStatecautionsreadersthatforward-lookingstatementsaresubjecttocertainrisks,uncertaintiesandassumptionsthataredifficulttopredictwithregardto,amongotherthings,timing,extent,likelihoodanddegreeofoccurrence,whichcouldcauseactualresultstodiffermateriallyfromanticipatedresults.Suchrisks,uncertaintiesandassumptions,include,amongothers,thefollowing:(1)economicdownturnrisk,potentiallyresultingindeteriorationinthecreditmarkets,inflation,greaterthanexpectednoninterestexpenses,excessiveloanlossesandothernegativeconsequences,whichriskscouldbeexacerbatedbypotentialcontinuednegativeeconomicdevelopmentsresultingfromtheCovid19pandemic,orfromfederalspendingcutsand/oroneormorefederalbudget-relatedimpassesoractions;(2)interestrateriskprimarilyresultingfromtheinterestrateenvironment,risinginterestrates,andtheirimpactontheBank’searnings,includingfromthecorrespondentandmortgagedivisions,housingdemand,themarketvalueofthebank’sloanandsecuritiesportfolios,andthemarketvalueofSouthState’sequity;(3)risksrelatedtothemergerandintegrationofSouthStateandAtlanticCapitalincluding,amongothers,(i)theriskthatthecostsavingsandanyrevenuesynergiesfromthemergermaynotbefullyrealizedormaytakelongerthananticipatedtoberealized,(ii)theriskthattheintegrationofAtlanticCapital’soperationsintoSouthState’soperationswillbemateriallydelayedorwillbemorecostlyordifficultthanexpectedorthatthepartiesareotherwiseunabletosuccessfullyintegrateAtlanticCapital’sbusinessesintoSouthState’sbusinesses,(iii)theamountofthecosts,fees,expensesandchargesrelatedtothemerger,and(iv)reputationalriskandthereactionofeachcompany'scustomers,suppliers,employeesorotherbusinesspartnerstothemerger;(4)risksrelatingtothecontinuedimpactoftheCovid19pandemicontheCompany,includingpossibleimpacttotheCompanyanditsemployeesfromcontactingCovid19,andtoefficienciesandthecontrolenvironmentduetothechangingworkenvironmentandtoourresultsofoperationsduetogovernmentstimulusandotherinterventionstomitigatetheimpactofthepandemic;(5)theimpactofincreasingdigitizationofthebankingindustryandmovementofcustomerstoon-lineplatforms,andthepossibleimpactontheBank’sresultsofoperations,customerbase,expenses,suppliersandoperations;(6)<br>controlsandproceduresrisk,includingthepotentialfailureorcircumventionofourcontrolsandproceduresorfailuretocomplywithregulationsrelatedtocontrolsandprocedures;(7)potentialdeteriorationinrealestatevalues;(8)theimpactofcompetitionwithotherfinancialinstitutions,includingpricingpressures(includingthoseresultingfromtheCARESAct)andtheresultingimpact,includingasaresultofcompressiontonetinterestmargin;(9)risksrelatingtotheabilitytoretainourcultureandattractandretainqualifiedpeople;(10)creditrisksassociatedwithanobligor’sfailuretomeetthetermsofanycontractwiththebankorotherwisefailtoperformasagreedunderthetermsofanyloan-relateddocument;(11)risksrelatedtotheabilityofthecompanytopursueitsstrategicplanswhichdependuponcertaingrowthgoalsinourlinesofbusiness;(12)liquidityriskaffectingtheBank’sabilitytomeetitsobligationswhentheycomedue;(13)risksassociatedwithananticipatedincreaseinSouthState’sinvestmentsecuritiesportfolio,includingrisksassociatedwithacquiringandholdinginvestmentsecuritiesorpotentiallydeterminingthattheamountofinvestmentsecuritiesSouthStatedesirestoacquirearenotavailableontermsacceptabletoSouthState;(14)priceriskfocusingonchangesinmarketfactorsthatmayaffectthevalueoftradedinstrumentsin“mark-to-market”portfolios;(15)transactionriskarisingfromproblemswithserviceorproductdelivery;(16)complianceriskinvolvingrisktoearningsorcapitalresultingfromviolationsofornonconformancewithlaws,rules,regulations,prescribedpractices,orethicalstandards;(17)regulatorychangeriskresultingfromnewlaws,rules,regulations,accountingprinciples,proscribedpracticesorethicalstandards,including,withoutlimitation,thepossibilitythatregulatoryagenciesmayrequirehigherlevelsofcapitalabovethecurrentregulatory-mandatedminimumsandincludingtheimpactoftheCARESAct,theConsumerFinancialProtectionBureauregulations,andthepossibilityofchangesinaccountingstandards,policies,principlesandpractices,includingchangesinaccountingprinciplesrelatingtoloanlossrecognition(CECL);(18)strategicriskresultingfromadversebusinessdecisionsorimproperimplementationofbusinessdecisions;(19)reputationriskthatadverselyaffectsearningsorcapitalarisingfromnegativepublicopinion;<br>(20)cybersecurityriskrelatedtothedependenceofSouthStateoninternalcomputersystemsandthetechnologyofoutsideserviceproviders,aswellasthepotentialimpactsofinternalorexternalsecuritybreaches,whichmaysubjectthecompanytopotentialbusinessdisruptionsorfinanciallossesresultingfromdeliberateattacksorunintentionalevents;(21)reputationalandoperationalrisksassociatedwithenvironment,socialandgovernance(ESG)matters,includingtheimpactofrecentlyissuedproposedregulatoryguidanceandregulationrelatingtoclimatechange;(22)greaterthanexpectednoninterestexpenses;(23)excessiveloanlosses;(24)potentialdepositattrition,higherthanexpectedcosts,customerlossandbusinessdisruptionassociatedwiththeAtlanticCapitalintegration,andpotentialdifficultiesinmaintainingrelationshipswithkeypersonnel;(25)reputationalriskandpossiblehigherthanestimatedreducedrevenuefromannouncedchangesintheBank’sconsumeroverdraftprograms;(26)therisksoffluctuationsinmarketpricesforSouthStatecommonstockthatmayormaynotreflecteconomicconditionorperformanceofSouthState;(27)thepaymentofdividendsonSouthStatecommonstock,whichissubjecttolegalandregulatorylimitationsaswellasthediscretionoftheboardofdirectorsofSouthState,SouthState’sperformanceandotherfactors;(28)ownershipdilutionriskassociatedwithpotentialacquisitionsinwhichSouthState’sstockmaybeissuedasconsiderationforanacquiredcompany;(29)operational,technological,cultural,regulatory,legal,creditandotherrisksassociatedwiththeexploration,consummationandintegrationofpotentialfutureacquisitions,whetherinvolvingstockorcashconsideration;(30)majorcatastrophessuchashurricanes,tornados,earthquakes,floodsorothernaturalorhumandisasters,includinginfectiousdiseaseoutbreaks,suchastheongoingCovid19pandemic,andtherelateddisruptiontolocal,regionalandglobaleconomicactivityandfinancialmarkets,andtheimpactthatanyoftheforegoingmayhaveonSouthStateanditscustomersandotherconstituencies;(31)terroristactivitiesriskthatresultsinlossofconsumerconfidenceandeconomicdisruptions;and(32)otherfactorsthatmayaffectfutureresultsofSouthState,asdisclosedinSouthState’sAnnualReportonForm10-K,QuarterlyReportsonForm10-Q,andCurrentReportsonForm8-K,filedbySouthStatewiththeU.S.<br>SecuritiesandExchangeCommission(“SEC”)andavailableontheSEC’swebsiteathttp://www.sec.gov,anyofwhichcouldcauseactualresultstodiffermateriallyfromfutureresultsexpressed,impliedorotherwiseanticipatedbysuchforward-lookingstatements.<br>Allforward-lookingstatementsspeakonlyasofthedatetheyaremadeandarebasedoninformationavailableatthattime.SouthStatedoesnotundertakeanyobligationtoupdateorotherwisereviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureevents,orotherwise,exceptasrequiredbyfederalsecuritieslaws.Asforward-lookingstatementsinvolvesignificantrisksanduncertainties,cautionshouldbeexercisedagainstplacingunduerelianceonsuchstatements.
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$39Billion in deposits<br>$28Billion in loans<br>$46Billion in assets<br>$6.3Billion market cap(1)FinancialmetricsasofJune30,2022;marketcapasofJuly27,2022SouthState CorporationOverview of Franchise (1)3<br>(283)<br>#1 in Florida#3 in South CarolinaTop 30Forbes 100 Best<br>Banks in<br>America<br>2022<br>Ranked #30by S&P Global<br>“Best Places to Work” designation in South Carolina<br>16 Greenwich Excellence and Best Brand awards from Coalition Greenwich
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Local MarketLeadershipOur business model supports the unique character of the communities we serve and encourages decision making by the banker that is closest to the customer.Long-TermHorizonWe think and act like owners and measure success over entire economic cycles. We<br>prioritize soundness before short-term profitability and growth.RemarkableExperiencesWe will make our customers’ lives better by anticipating their needs and<br>responding with a sense of urgency. Each of us has the freedom, authority and<br>responsibility to do the right thing for our customers.Meaningful and LastingRelationshipsWe communicate with candor and transparency. The relationship is more valuable<br>than the transaction.Greater PurposeWe enable our team members to pursue their ultimate purpose in life—their personal faith, their family, their service to community.The WHATThe HOW<br>Guiding PrinciplesCore Values<br>Leadership<br>The WHY<br>To invest in the entrepreneurial spirit, pursue excellence and inspire a greater purpose.4
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16.9%12.6%12.2%11.1%8.9%8.3%5.8%FLSCGANCVAU.S.ALActual Population Growth 2010-2022<br>$9.5B$12.6B$1.5B$2.0B$6.3B$11.0B$0.7B$0.5B$5.6B$7.4B<br>$2.4B$2.2B<br>LoansDepositsPOSITIONED FOR THE FUTURE IN THE BEST GROWTH MARKETS IN AMERICA 5<br>$262$287$623$697$726$1,304ALSCVANCGAFLGDP by State($ in billions)<br>4.6%4.4%4.2%3.5%3.2%3.1%2.8%FLGAALVAU.S.SCNCProjected Population Growth 2022-2027<br>$3.1$3.2$3.9$4.2$4.9$17.7$23.0IndiaUKSSB FootprintGermanyJapanChinaUSGDP ($ in trillions)<br>The combined GDP of<br>SouthState’s 6 state branch<br>footprint would represent the<br>world’s fifth largest economy.<br>Population increase (in millions)3.2 0.6 1.2 1.1 0.7 25.5 0.31.0 0.5 0.2 0.3 10.7 0.20.3<br>Loans and deposits as of 6/30/22; excludes $2.0B of loans and $3.2B of deposits from internal accounts and national lines of businessCountry GDP as of 2021; State GDP as of 1Q22Sources: S&P Global, World Bank, US Bureau of Economic AnalysisPopulation increase (in millions)
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PANDEMIC ACCELERATES POPULATION MIGRATION TO THE SOUTH6U.S. Net Domestic Migration During Covid, July 2020 to July 2021<br>Source: U.S. Census Bureau6
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INVESTMENT THESIS7<br>•High growth markets•Low-cost core deposit base•Diversified revenue streams •Strong credit quality and disciplined underwriting •Energetic and experienced management team with entrepreneurial ownership culture •True alternative to the largest banks with capital markets platform and upgraded<br>technology solutions
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Quarterly Results
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HIGHLIGHTS	LINKED QUARTER<br>Dollars in millions, except per share data(1)For end note descriptions, see Earnings Presentation End Notes starting on slide 449<br>1Q222Q22GAAPNet Income$<br>100.3<br>$<br>119.2<br>EPS (Diluted)$<br>1.39<br>$<br>1.57<br>Return on AverageAssets<br>0.95<br>%<br>1.04<br>%Non-GAAP(1)Return on AverageTangible Common Equity<br>13.97<br>%<br>16.59<br>%Non-GAAP,Adjusted(1)Net Income$<br>121.9<br>$<br>123.4<br>EPS (Diluted)$<br>1.69<br>$<br>1.62<br>Return on AverageAssets<br>1.15<br>%<br>1.08<br>%Return on AverageTangible Common Equity<br>16.79<br>%<br>17.15<br>%
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QUARTERLY HIGHLIGHTS	2Q 2022<br>(1) & (2) For end note descriptions, see Earnings Presentation End Notes starting on slide 44(3)ExcludingACBIacquisitiondatebalances10•Reported & adjusted diluted Earnings per Share (“EPS”)(1)of $1.57 and $1.62, respectively•Pre-Provision Net Revenue (“PPNR”)(non-GAAP)(2)of $176.8 million, or 1.55% PPNR ROAA(2)•PPNR per diluted share (non-GAAP)(2)of $2.32, up 29.6% from the prior quarter’s $1.79 and up 45.9% from $1.59 one year ago•Loans, excluding PPP loans, increased $1.5 billion, or 22.0% annualized from prior quarter; increased 12.3%(3)over the last year•15.8% revenue growth with 3.4% expense growth generated 12.4% operating leverage in the quarter •Adjusted efficiency ratio (non-GAAP)(1)improved to 53.6% from prior quarter’s 60.1%•Net charge-offs of $2.3 million, or 0.03% annualized; provision for credit losses of $19.3 million
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PPNR PER DILUTED SHARE(1)<br>$1.59 $1.87 $1.89 $1.79 $2.32 $1.50 $2.00<br> $2.502Q213Q214Q211Q222Q22<br>(1)For end note descriptions, Earnings Presentation End Notes starting on slide 4411
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NET INTEREST MARGIN(1)<br>$232.6 $238.4 $244.7 $253.8 $301.5 $20.5 $21.6 $13.4 $7.7 $12.8<br>$253.1<br>$260.0<br>$258.1<br>$261.5<br>$314.3<br>2.87%<br>2.86%<br>2.78%<br>2.77%<br>3.12%2.5%2.8%3.0%3.3%3.5%<br> $100<br> $150<br> $200<br> $250<br> $300<br> $3502Q213Q214Q211Q222Q22$ in millions<br>Net Interest Income excld. Accretion<br>AccretionNet Interest Income<br>Net Interest Margin<br>35 bps quarterly improvement in Net Interest Margin<br>Dollarsinmillions(1)For end note descriptions, see Earnings Presentation End Notes starting on slide 44(2)Accretion includes PPP loans deferred fees and loan discount accretion(3)Tax equivalent12<br>(2)(2)(3)
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LOAN PRODUCTION VS LOAN GROWTH<br>$1,256 $1,791 $1,933 $2,079 $1,699 $1,470 $1,535 $1,879 $1,834 $2,355 $2,636 $3,129 $2,582 $3,863 $180 $82 $267 $153 $180 $(372)$(277)$(155)$(185)$169 $573 $396 $381 $1,451 -$500$0$500$1,000$1,500$2,000<br>$2,500<br>$3,000$3,500$4,0001Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q22$ in millions<br>Loan Production<br>Loan Portfolio Growth<br>Dollarsinmillions(1)1Q22&2Q22loanproductionexcludesproductionbylegacyACBI;1Q22loanportfoliogrowthexcludesacquisitiondateloanbalancesacquiredfromACBI(2)1Q19loanproductionexcludesproductionfromNationalBankofCommerce(“NBC”);NationalCommerceCorporation,theholdingcompanyofNBC,wasacquiredbyCenterStatein2Q2019(3)ExcludesloansheldforsaleandPPP;loanproductionindicatescommittedbalancetotal;loanportfoliogrowthindicatesquarter-over-quarterloanendingbalancegrowth,excludingloansheldforsaleandPPP(4)Forendnotedescriptions,seeEarningsPresentationEndNotesstartingonslide4413(1)(1)(1)(2)(4)(4)(4)(4)(4)(4)(3)(3)
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QTD Production ($mm)$1,404$1,271$1,443<br>Refinance28%30%11%<br>Purchase72%70%89%MORTGAGE BANKING DIVISION<br>(1)Includes pipeline, LHFS and MBS forwards14<br>Highlights<br>Quarterly Mortgage Production<br>Gain on Sale Margin•Mortgage banking income of $5.5 million in 2Q 2022 compared to $10.6 million in 1Q 2022•Secondary pipeline at 2Q 2022 of $126 million, as compared to $260million at 1Q 2022<br>2.85%3.13%2.83%2.87%2.13%2Q213Q214Q211Q222Q22<br>Mortgage Banking Income ($mm)<br>73%27%2Q22<br>43%57%2Q21<br>Portfolio<br>Secondary<br>53%47%1Q22<br>2Q211Q222Q22<br>Secondary Market<br>Gain on Sale, net $ 20,544 $ 14,381 $ 6,419<br>Fair Value Change(1) (11,295) (6,383) (1,957)<br> Total Secondary Market Mortgage Income $ 9,249 $ 7,998 $ 4,462<br>MSR<br>Servicing Fee Income $ 3,544 $ 3,837 $ 4,076<br>Fair Value Change / Decay (2,678) (1,241) (3,058)<br> Total MSR-Related Income $ 866 $ 2,596 $ 1,018<br>Total Mortgage Banking Income $ 10,115 $ 10,594 $ 5,480
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Cumulative ConsumerR/E Loan Growth ($)$(12)$(98)$(264)$(486)$(625)$(712)$(727)$(653)$(535)$(18)($300)($150)$0$150$300$450$600<br>$(12)$(86)$(167)$(221)$(139)$(87)$(15)$73 $119 $517 3.63%3.46%3.25%3.04%3.08%3.00%3.04%3.25%4.25%5.54%3.07%4.49%4.11%4.56%4.33%2.85%3.13%2.83%2.87%2.13% -% 3.0% 6.0% $(300) $(100) $100 $300 $500<br> $7001Q202Q203Q204Q201Q212Q213Q214Q211Q222Q22$ in millions<br>Consumer R/E Loan Growth ($)<br>30-yr Fixed Mortgage Rate<br>GOS Margin<br>RESIDENTIAL MORTGAGE PORTFOLIO GAIN ON SALE (“GOS”) MARGIN AND INTEREST RATES<br>Dollarsinmillions(1)&(2)Forendnotedescriptions,seeEarningsPresentationEndNotesstartingonslide4415(1)(2)(2)
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•Provides capital markets hedging (ARC), fixed income sales, international, clearing and other services to over 1,000 financial institutions across the country CORRESPONDENT BANKING DIVISION1,172 Financial Institution Clients16<br>$25.9<br>$25.2<br>$30.2<br>$28.0<br>$27.6 $0.0$5.0$10.0$15.0$20.0$25.0$30.0$35.0 $- $5 $10 $15<br> $20<br> $25<br> $30<br> $352Q213Q214Q211Q222Q22$ in millionsCorrespondent Revenue Breakout<br>ARC Revenues<br>FI Revenues<br>Operational RevenuesTotal Revenue
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Interest Rate Sensitivity
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Noninterest-bearing Checking$14.3BInterest-bearing Checking$9.0BSavings$3.6BMoney Market$9.3BTime Deposits$2.7B<br>37%34%29%Checking Accounts CompositionCommercialSmall BusinessRetail<br>Data as of June 30, 2022Dollars in billions except for average checking balances† Core deposits defined as non-time deposits(1) Source: S&P Global Market Intelligence; 2Q22 MRQs available as of July 28, 2022; Peers as disclosed in the most recent SSB proxy statement<br>60%43%33%50%7%7%0%20%40%<br>60%<br>80%100%SSBPeer Average (1)Deposit Mix vs. Peers<br>Checking Accounts<br>MM & Savings<br>Time DepositsPREMIUM CORE†DEPOSIT FRANCHISE18Total Deposits$38.9 BillionDeposits by Type•Total cost of deposits for 2Q22: 6 bps•~ 837 thousand checking accounts / ~1.2 million total deposit accounts<br>Checking TypeAvg. Checking BalanceCommercial$303,100Small Business$56,500Retail$11,800
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INTEREST RATE RISK PROFILE<br>1.2%2.4%4.7%9.0%0%1%2%3%4%<br>5%6%<br>7%8%9%10%Up 25 bpsUp 50 bpsUp 100 bpsUp 200 bpsPercentage Change in Net Interest IncomeInstantaneous Shock/Static Balance Sheet(1)19<br>51%51%31%41%18%8%0%10%20%30%<br>40%50%60% Variable Equals 1 Month or Less Variable Equals 12 Months or LessLoan Repricing Frequency (excluding PPP)<br>Fixed<br>Variable<br>Adjustable<br>(1)Denotes percentage change in net interest income from the base case scenario that reflects the consensus forecast published mid-July 2022. The consensus forecast projects yield curve inversion. Interest rate shocks are applied to consensus forecast. Deposit betas have been accelerated to reflect sensitivities from June 30, 2022. During Q2 2022, deposit costs increased one basis point since the Federal Reserve began raising rates in March 2022.19
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WELL-POSITIONED FOR HIGHER RATES –HISTORICAL DEPOSIT BETA(1)<br>0.16%0.37%0.37%0.40%0.45%0.70%0.95%1.16%1.20%1.45%1.74%1.92%2.22%2.40%2.40%1.58%1.37%1.24%1.12%1.61%1.94%1.80%1.81%2.07%2.53%2.76%2.80%2.88%2.47%2.12%<br>0.12%<br>0.12%<br>0.11%<br>0.11%<br>0.12%<br>0.13%<br>0.15%<br>0.17%<br>0.19%<br>0.25%<br>0.34%<br>0.44%<br>0.52%<br>0.56%<br>0.64%0.0%0.5%1.0%<br>1.5%2.0%2.5%3.0%4Q151Q162Q163Q164Q161Q172Q173Q174Q171Q182Q183Q184Q181Q192Q19<br>(1)Forendnotedescriptions,seeEarningsPresentationEndNotesstartingonslide44HistoricdepositbetaexcludeslegacyACBI.20<br>24% total deposit beta from 4Q15 –2Q19Avg. Fed Funds RateAvg. 5-YR USTCost of Deposits
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Balance Sheet
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LOAN AND DEPOSIT TRENDS<br>$22.7 $23.3 $23.7 $26.4 $27.9 $1.3 $0.5 $0.2 $0.1<br>$24.0B<br>$23.8B<br>$23.9B<br>$26.6B<br>$27.9B $21.0B $22.0B $23.0B $24.0B $25.0B $26.0B $27.0B $28.0B $29.0B<br> $-<br> $6<br> $12<br> $18<br> $24<br> $302Q213Q214Q211Q222Q22$ in billionsLoans(1)<br>Total Loans<br>PPP<br>Dollarsinbillions(1)Excludesloansheldforsale22<br>$11.2 $11.4 $11.5 $14.1 $14.3 $7.7 $7.9 $9.0 $9.3 $9.0 $11.0 $11.3 $11.8 $12.6 $12.9 $3.3 $3.0 $2.8 $2.8 $2.7<br>$33.2B<br>$33.6B<br>$35.1B<br>$38.8B<br>$38.9B $- $50,000,000.0B $100,000,000.0B $150,000,000.0B $200,000,000.0B $250,000,000.0B $300,000,000.0B $350,000,000.0B $- $6 $12 $18 $24<br> $30 $36 $422Q213Q214Q211Q222Q22$ in billionsDeposits<br>Noninterest-bearing Checking<br>Interest-bearing Checking<br>MMA & Savings<br>Time Deposits
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Investor CRE (2)30%Owner-Occupied CRE19%C&I17%Consumer RE20%Cons / Other5%CDL (1)9%TOTAL LOAN PORTFOLIO23<br>Data as of June 30, 2022Loan portfolio balances, average balances or percentage exclude loans held for sale and PPP loans(1) CDL includes residential construction, commercial construction, and all land development loans (2) Investor CRE includes nonowner-occupied CRE and other income producing property(3) Excludes SELF loans acquired from ACBI<br>Loan TypeNo. of LoansBalanceAvg. Loan BalanceConstr., Dev. & Land5,547$2.5B$455,500Investor CRE9,0978.4B922,800Owner-Occupied CRE8,2885.4B654,100C & I18,6244.8B255,000Consumer RE39,2235.5B140,400Cons / Other(3)46,6031.1B22,700Total(3)127,382$27.7B$217,100<br>Loan RelationshipsTop 10Represents ~ 2% of total loansTop 20Represents ~ 3% of total loansLoans by TypeTotal Loans$27.9 Billion
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ASSET QUALITY METRICS<br>0.03%0.00%0.02%0.04%0.03% -% 0.05% 0.10%<br> 0.15% 0.20% 0.25%2Q213Q214Q211Q222Q22Net Charge-Offsto Loans<br>Dollarsinmillions(1)ExcludesloansheldforsaleandPPPloans<br>2.92%2.65%2.11%2.03%1.76%1.68%1.48%1.02%0.97%0.80%<br>1.24%1.17%1.09%1.06%0.96%0%1%<br>2%3%4%2Q213Q214Q211Q222Q22Criticized & Classified Asset Trends<br>Combined<br>Special Mention / Assets<br>Substandard / Assets<br>0.38%0.40%0.35%0.44%0.33%<br>0.0%<br>0.3%<br>0.5%<br>0.8%<br>1.0%2Q213Q214Q211Q222Q22Nonperforming Assets to Loans & OREO24
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41%29%24%5%1%0.4%Municipal Bond Rating<br>AAA<br>AA+<br>AA<br>AA-<br>A+<br>A<br>Dollars in billionsData as of June 30, 2022† Investment portfolio excludes non-marketable equity(1)MBS issued by U.S. government agencies or sponsored enterprises (commercial and residential collateral)(2)Investment securities yield include non-marketable equity and trading securities(3)Excludes principal receivable balance as of June 30, 2022<br>1.49%1.51%1.53%1.75%2.03%<br>1.0%<br>1.6%<br>2.2%2Q213Q214Q211Q222Q22Investment Securities Yield (2)HIGH QUALITY INVESTMENT PORTFOLIO<br>73%13%8%6%Investment Portfolio†Composition<br>Agency MBS(1)<br>Municipal<br>Treasury & agency<br>Other<br>TypeAFS<br>HTM<br>BalanceDuration (yrs)(3)BalanceDuration (yrs)Agency MBS(1) $3.6B5.2$2.5B5.8Municipal$1.1B9.1--Treasury & agency$0.5B2.5$0.2B5.8Other $0.5B3.8$0.1B6.3Total$5.7B5.6$2.8B5.825Total InvestmentPortfolio†$8.5 Billion•93% of municipal portfolio is AA or higher rated
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CAPITAL RATIOS<br>1Q222Q22(2)<br>Tangible Common Equity<br>(1)<br>7.0<br>%<br>6.8<br>%<br>Tier 1 Leverage<br>8.5<br>%<br>8.0<br>%<br>Tier 1 Common Equity<br>11.4<br>%<br>11.1<br>%<br>Tier 1 Risk-<br>Based Capital<br>11.4<br>%<br>11.1<br>%<br>Total Risk-<br>Based Capital<br>13.3<br>%<br>13.0<br>%<br>Bank<br>CRE Concentration Ratio<br>243<br>%<br>248<br>%<br>Bank CDL Concentration Ratio<br>57<br>%<br>61<br>%<br>(1)Forendnotedescriptions,seeEarningsPresentationEndNotesstartingonslide44(2)Preliminary26
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Appendix
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BRANCH OPTIMIZATION<br>85 BranchesAverage Size $40M<br>422 Branches Acquired Plus12 DeNovo Branches<br>236 Branches Consolidated or Sold<br>283 BranchesAverage Size $137M<br>~<br>243%<br>growth in deposits per branch<br>854342362832009 …..……………..………..……....…………………………….. 2Q 202228<br>283 Branches 2Q22<br>30 Branches to be Consolidated<br>253 Branches 3Q22Planned 3rdQuarter 2022 Activity
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TECHNOLOGY	DIGITAL292020-2022 Foundation System Conversion CompleteTech Stack with Best-in-Class SystemsTalent retained and in place for next phaseFuture•Strategic Talent Adds•Efficiency, Capacity, Automation•Data Analytics•Money Movement•Digital First<br>Mobile Deposits, ATM & RDC<br>Target:Digital Only Sales<br>2Q2022<br>Best in Class<br>Deposit Accounts22%~ 50%Consumer Loans16%~ 50%SBA 7A12% Mortgage Loans 5% Digital Deposits 32% ~ 80%
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$39.13 $41.16 $44.62 $39.47$1.88 $3.80 $4.78 $0.45 $2.54 $4.04<br>$39.13<br>$43.49<br>$50.96<br>$48.29 2019202020212Q22<br>Tangible Book Value per Share ("TBVPS")<br>Cumulative Dividends<br>Cumulative Repurchases per ShareChange in AOCI per Share<br>$0.77 $0.66 $(0.99)$(6.21) $(8.00) $(4.00) $- $4.00<br> $8.00 $12.00 $16.00<br> $20.00 $24.00 $28.00<br> $32.00 $36.00 $40.00 $44.00 $48.00 $52.00 $56.00 $60.00 $64.00 $68.00TANGIBLE BOOK VALUE PER SHARE(1) PLUS CAPITAL RETURN PER SHARE<br>(1)For end note descriptions, see Earnings Presentation End Notes starting on slide 4430
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CAPITAL RETURN TO SHAREHOLDERS<br>$33.3$34.3$34.2$33.9$37.0$60.2 $36.0 $50.2 $86.5 $23.7<br>$93.5<br>$70.3<br>$84.4<br>$120.4<br>$60.7 $-$0$40$80$120<br>$1602Q213Q214Q211Q222Q22$ in millions<br>Dividends<br>Equity Repurchases31<br>Dollars in millions(1)YTD repurchases of outstanding shares based on outstanding shares as of July 22, 2022(2)Dividend yield based on stock price as of July 27, 2022•Returned $181.1 million to shareholders through YTD 2022 share repurchases and dividends•1.3 million shares repurchased YTD represents 1.7%(1)of outstanding shares •Annualized dividend of $2.00 represents an attractive dividend yield of 2.4%(2)•Remaining repurchase authorization of 4.12 million shares31
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CURRENT & HISTORICAL 5-QTR PERFORMANCE(1)<br>76%75%74%76%78%24%25%26%24%22%<br>$332M<br>$347M<br>$350M<br>$348M<br>$403M<br>2.93%0.0%0.6%1.2%<br>1.8%2.4%3.0%<br>3.6%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>120%2Q213Q214Q211Q222Q22Revenue Composition<br>Noninterest Income / RevenueTotal Revenue ($MM)<br>Avg. 10-year UST<br>Total Revenue<br>Dollarsinmillions(1)Forendnotedescriptions,seeEarningsPresentationEndNotesstartingonslide44(2)Annualized<br>$79 $87 $92 $86 $88 0.80%0.85%0.88%0.81%0.77%0.5%0.6%<br>0.7%0.8%0.9%<br>1.0%<br> $-<br> $20<br> $40<br> $60<br> $80<br> $100<br> $120<br> $1402Q213Q214Q211Q222Q22$ in millionsNoninterest Income<br>Noninterest Income<br>Noninterest Income / Avg. Assets<br>2.87%2.86%2.78%2.77%3.12%2.0%2.5%3.0%3.5%<br> $200<br> $250<br> $300<br> $3502Q213Q214Q211Q222Q22$ in millionsNet Interest Margin (“NIM”)<br>NIM ($)<br>NIM (%)<br>76%64%61%63%55%63%59%59%60%54%<br>0%<br>15%<br>30%<br>45%<br>60%<br>75%<br>90%2Q213Q214Q211Q222Q22Efficiency Ratio<br>Efficiency Ratio<br>Adjusted Efficiency Ratio32(2)
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LOSS ABSORPTION CAPACITY	2Q 2022<br>2Q22% of Total Loans(1)Allowance for Credit Losses (“ACL”)<br>Non-PCD ACL$257.4PCD ACL62.3Total ACL$319.71.15%Reserve for Unfunded Commitments<br>Reserve for unfunded commitments32.50.12%Total ACL plus Reserve for Unfunded Commitments$352.31.27%Unrecognized Discount –Acquired Loans (2)89.00.32%Loss Absorption Capacity$441.31.58%Total Loans Held for Investment (1)$27,888<br>Dollars in millions(1)Excludes PPP loans and loan held for sale(2)Includes mark on loans from ACBI and prior SSB acquisitionsTotals shown above may not foot due to rounding33
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SIGNIFICANT PURCHASE ACCOUNTING MARKS(1)<br>Loan Balance (2)% of TotalCredit MarkInterest MarkTotal MarkNonPCD Loans~$2.3B94%~$20.3mm~0.9%~$14.3mm~0.6%~$34.6mm~1.5%PCD Loans~$0.1B6%~$13.8mm~10.0%~$5.9mm~4.3%~$19.7mm~14.3%Total$2.4B$34.0mm~1.4%$20.3mm~0.8%$54.3mm~2.2%<br>Dollars in millions, unless otherwise noted(1)Loan marks are preliminary and are subject to changes upon finalization(2)Excludes LHFS34−~$13.8 million credit mark on PCD loans (~10.0%); total interest discount of ~$5.9 million to be amortized into interest income over time−NonPCD credit mark of ~$20.3 million and total interest discount of ~$14.3 million totaling ~$34.6 million to be amortized into interest income over time−Day 2 entries include a provision for credit losses for NonPCD loans and UFC of ~$17.1 million•Core Deposit Intangible: ~$17.5 million (~0.63% of core deposits)
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EXCESS LIQUIDITY PROVIDES SIGNIFICANT TAILWIND<br>(1)Source:S&PGlobalMarketIntelligence;PeersasdisclosedinthemostrecentSSBproxystatement;The2Q22averagesarebasedonMRQsavailableasofJuly28,2022Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable,includedintheAppendixtothispresentation.ThecombinedhistoricalinformationexcludesACBI.35<br>1.8%<br>5.8%<br>10.6%<br>10.9%<br>11.2%<br>14.1%<br>14.6%<br>13.9%<br>15.2%<br>11.8%<br>9.0%<br>12.4%<br>12.4%<br>8.7%<br>9.9%<br>11.8%<br>13.3%<br>14.2%<br>15.7%<br>17.1%<br>19.3%<br>18.7%3.0%3.2%5.5%5.5%7.4%8.8%9.7%10.5%10.9%8.3%5.6%18.6%18.8%17.9%18.4%18.6%19.3%20.3%21.0%21.5%22.6%21.2%-1.0%3.0%7.0%11.0%15.0%19.0%23.0%-1%4%9%14%<br>19%<br>24%4Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q22<br>Fed Funds & Interest Earning Cash / Assets<br>Investments / Assets<br>Peer Avg. - Fed Funds & Interest Earning Cash / Assets (1)<br>Peer Avg. - Investments / Assets (1)
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NON-GAAP RECONCILIATIONS –RETURN ON AVG. TANGIBLE COMMON EQUITY & PPNR RETURN ON AVG. ASSETS<br>DollarsinthousandsThetangiblemeasuresarenon-GAAPmeasuresandexcludetheeffectofperiodendoraveragebalanceofintangibleassets;thetangiblereturnsonequityandcommonequitymeasuresalsoaddbacktheafter-taxamortizationofintangiblestoGAAPbasisnetincome.36<br>Return on Average Tangible Equity1Q222Q22Net income (GAAP)100,329$ 119,175$ Plus:Amortization of intangibles8,494 8,847 Effective tax rate, excluding DTA write-off21% 22% Amortization of intangibles, net of tax6,688 6,931<br>Net income plus after-tax amortization of intangibles (non-GAAP)107,017$ 126,106$<br>Average shareholders common equity, excluding preferred stock4,937,165$ 5,109,325$ Less:Average intangible assets1,831,2502,060,537Average tangible common equity3,105,915$ 3,048,788$ Return on Average Tangible Common Equity (Non-GAAP)14.0%16.6%PPNR Return on Average Assets 1Q222Q22PPNR, Adjusted (Non-GAAP)129,240$ 176,792$ Average assets 42,946,332 45,847,789 PPNR ROAA1.22%1.55%
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NON-GAAP RECONCILIATIONS –ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (“EPS”)<br>Dollarsinthousands,exceptforpersharedata37<br>Adjusted Net Income1Q222Q22Net income (GAAP)100,329$ 119,175$ Plus:Initial provision for credit losses - NonPCD loans and UFC from the ACBI merger, net of tax13,492 - Merger and branch consolidation related expense, net of tax8,092 4,223 Adjusted Net Income (Non-GAAP)121,913$ 123,398$ Adjusted EPS 1Q222Q22Diluted weighted-average common shares72,111 76,094 Adjusted net income (non-GAAP)121,913$ 123,398$ Adjusted EPS, Diluted (Non-GAAP)1.69$ 1.62$
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NON-GAAP RECONCILIATIONS –ADJUSTED RETURN ON AVG. ASSETS & AVG. TANGIBLE COMMON EQUITY<br>DollarsinthousandsThetangiblemeasuresarenon-GAAPmeasuresandexcludetheeffectofperiodendoraveragebalanceofintangibleassets;thetangiblereturnsonequityandcommonequitymeasuresalsoaddbacktheafter-taxamortizationofintangiblestoGAAPbasisnetincome.38Dollars in thousands, except for per share data<br>Adjusted Return on Average Assets1Q222Q22Adjusted net income (non-GAAP)121,913$ 123,398$ Total average assets42,946,332 45,847,789 Adjusted Return on Average Assets (Non-GAAP)1.15%1.08%Adjusted Return on Average Tangible Common Equity1Q222Q22Adjusted net income (non-GAAP)121,913$ 123,398$ Plus:Amortization of intangibles, net of tax6,688 6,931 Adjusted net income plus after-tax amortization of intangibles (non-GAAP)128,601$ 130,329$ Average tangible common equity3,105,915$ 3,048,788$ Adjusted Return on Average Tangible Common Equity (Non-GAAP)16.79%17.15%
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NON-GAAP RECONCILIATIONS –NET INTEREST MARGIN & CORE NET INTEREST INCOME (EXCLD. FMV & PPP ACCRETION)<br>Dollarsinthousands39Dollars in thousands, except for per share data<br>Net Interest Margin - Tax Equivalent (Non-GAAP)2Q213Q214Q211Q222Q22Net interest income (GAAP)253,130$ 259,986$ 258,104$ 261,474$ 314,279$ Tax equivalent adjustments1,424 1,477 1,734 1,885 2,249 Net interest income (tax equivalent) (Non-GAAP)254,554$ 261,463$ 259,838$ 263,359$ 316,528$ Average interest earning assets35,631,605$ 36,218,437$ 37,031,640$ 38,527,023$ 40,687,395$ Net Interest Margin - Tax Equivalent (Non-GAAP)2.87%2.86%2.78%2.77%3.12%Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP)1Q222Q22Net interest income (GAAP)261,474$ 314,279$ Less: Total accretion on acquired loans6,741 12,770 Deferred fees on PPP loans983 8 Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP)253,750$ 301,501$
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NON-GAAP RECONCILIATIONS –PPNR, ADJUSTED, PPNR/WEIGHTED AVG. CS & CORRESPONDENT & CAPITAL MARKETS INCOME (UNAUDITED)<br>Dollarsandweightedaveragecommonsshareoutstandinginthousandsexceptpersharedata40<br>2Q213Q214Q211Q222Q22<br>Net interest income (GAAP)253,130$ 259,986$ 258,104$ 261,474$ 314,279$<br>Plus:<br>Noninterest income 79,020 87,010 91,894 86,090 88,292<br>Less:<br>Gain on sale of securities36 64 2 - -<br>Total revenue, adjusted (non-GAAP)332,114$ 346,932$ 349,996$ 347,564$ 402,571$<br>Less:<br>Noninterest expense263,383 232,290 224,037 228,600 231,169<br>PPNR (Non-GAAP)68,731$ 114,642$ 125,959$ 118,964$ 171,402$<br>Plus:<br>Merger and branch consolidation related expense32,970 17,618 6,645 10,276 5,390<br>Extinguishment of debt cost11,706 - - - -<br>Total adjustments44,676$ 17,618$ 6,645$ 10,276$ 5,390$<br>PPNR, Adjusted (Non-GAAP)113,407$ 132,260$ 132,604$ 129,240$ 176,792$<br>Weighted average common shares outstanding, diluted 71,409 70,576 70,290 72,111 76,094<br>PPNR, Adjusted per Weighted Avg. Common Shares Outstanding, Diluted (Non-GAAP)1.59$ 1.87$ 1.89$ 1.79$ 2.32$<br>2Q213Q214Q211Q222Q22<br>ARC revenues9,433$ 9,853$ 16,686$ 15,150$ 14,925$<br>FI revenues14,280 13,139 11,317 10,697 10,151<br>Operational revenues2,164 2,172 2,213 2,147 2,528<br>Total Correspondent & Capital Market Income25,877$ 25,164$ 30,216$ 27,994$ 27,604$<br>PPNR, Adjusted & PPNR, Adjusted per Weighted Avg. Common Shares Oustanding, Diluted (Non-GAAP)<br>Correspondent & Capital Market Income
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NON-GAAP RECONCILIATIONS –CURRENT & HISTORICAL: EFFICIENCY RATIOS (UNAUDITED)<br>Dollarsinthousands41<br>2Q213Q214Q211Q222Q22<br>Noninterest expense (GAAP)263,383$ 232,290$ 224,037$ 228,600$ 231,169$<br>Less: Amortization of intangible assets8,968 8,543 8,517 8,494 8,847<br>Adjusted noninterest expense (non-GAAP)254,415$ 223,747$ 215,520$ 220,106$ 222,322$<br>Net interest income (GAAP)253,130$ 259,986$ 258,104$ 261,474$ 314,279$<br>Tax Equivalent ("TE") adjustments1,424 1,477 1,734 1,885 2,249<br>Net interest income, TE (non-GAAP)254,554$ 261,463$ 259,838$ 263,359$ 316,528$<br>Noninterest income (GAAP)79,020$ 87,010$ 91,894$ 86,090$ 88,292$<br>Less: Gain on sale of securities36 64 2 - -<br>Adjusted noninterest income (non-GAAP)78,984$ 86,946$ 91,892$ 86,090$ 88,292$<br>Efficiency Ratio (Non-GAAP)76%64%61%63%55%<br>Noninterest expense (GAAP)263,383$ 232,290$ 224,037$ 228,600$ 231,169$<br>Less:<br>Merger and branch consolidation related expense32,970 17,618 6,645 10,276 5,390<br>Extinguishment of debt cost11,706 - - - -<br>Amortization of intangible assets8,968 8,543 8,517 8,494 8,847<br>Total adjustments53,644$ 26,161$ 15,162$ 18,770$ 14,237$<br>Adjusted noninterest expense (non-GAAP)209,739$ 206,129$ 208,875$ 209,830$ 216,932$<br>Adjusted Efficiency Ratio (Non-GAAP)63%59%59%60%54%
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NON-GAAP RECONCILIATIONS –CURRENT & HISTORICAL: INVESTMENTS, FED FUNDS SOLD & INT. EARNING CASH(UNAUDITED)<br>Dollarsinthousands(1)For end note descriptions, see Earnings Presentation End Notes starting on slide 44(2)Doesnotincludepurchaseaccountingadjustments42<br>2Q203Q204Q201Q212Q213Q214Q211Q222Q22<br>SSBCSFL Combined (2)SSBCSFL Combined (2)SSBSSBSSBSSBSSBSSBSSBSSBSSB<br>Fed Funds & Interest Earning Cash426,685$ 163,890$ 590,575$ 1,003,257$ 1,033,586$ 2,036,843$ 3,983,047$ 4,127,250$ 4,245,949$ 5,581,581$ 5,875,078$ 5,701,002$ 6,366,494$ 5,444,234$ 4,160,583$<br>Investments2,005,171 2,094,614 4,099,785 2,034,189 2,342,822 4,377,011 3,271,148 3,747,128 4,446,657 5,267,271 5,719,031 6,433,631 7,173,947 8,931,233 8,652,288<br>Total Assets15,921,092$ 17,142,025$ 33,063,117$ 16,642,911$ 18,596,292$ 35,239,203$ 37,725,356$ 37,819,366$ 37,789,873$ 39,730,332$ 40,375,869$ 40,903,708$ 41,960,032$ 46,201,541$ 46,207,422$<br>Fed Funds & Interest Earning Cash / Assets1.8%5.8%10.6%10.9%11.2%14.1%14.6%13.9%15.2%11.8%9.0%<br>Investments / Assets12.4%12.4%8.7%9.9%11.8%13.3%14.2%15.7%17.1%19.3%18.7%<br>Combined Business Basis (SSB & CSFL)(1)<br>4Q19<br>1Q20
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NON-GAAP RECONCILIATIONS –TANGIBLE BOOK VALUE / SHARE & TANGIBLE COMMON EQUITY RATIO<br>Dollarsinthousands,exceptforpersharedata43<br>Tangible Book Value per Common Share2Q213Q214Q211Q222Q22Shareholders' common equity (excludes preferred stock)4,757,623$ 4,792,941$ 4,802,940$ 5,174,408$ 5,040,425$ Less: Intangible assets1,726,211 1,717,669 1,709,152 2,064,388 2,055,219 Tangible shareholders' common equity (excludes preferred stock)3,031,412$ 3,075,272$ 3,093,788$ 3,110,020$ 2,985,206$ Common shares issued and outstanding70,382,728 69,918,037 69,332,297 75,761,018 75,641,322 Tangible Book Value per Common Share (Non-GAAP)43.07$ 43.98$ 44.62$ 41.05$ 39.47$ Tangible Common Equity ("TCE") Ratio1Q222Q22Tangible common equity (non-GAAP)3,110,020$ 2,985,206$ Total assets (GAAP)46,201,541 46,207,422 Less:Intangible assets2,064,388 2,055,219 Tangible asset (non-GAAP)44,137,153$ 44,152,203$ TCE Ratio (Non-GAAP)7.0%6.8%
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44EARNINGS PRESENTATION END NOTESSlide 9 End Notes(1)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; other adjusted figures presented are also Non-GAAP financialmeasures that exclude the impact of branch consolidation and merger-related expenses, and initial PCL on nonPCDloans and unfunded commitments acquired from ACBI -See reconciliation of GAAP to Non-GAAP measures in Appendix.Slide 10 End Notes(1)Adjusted figures above exclude the impact of merger and branch consolidation related expense; Core net interest income excludingloan accretion and net deferred fees on PPP is also a non-GAAP financial measure; Adjusted efficiency ratio is calculated by taking the noninterest expense excluding merger and branch consolidation related expense and amortization of intangible assets, divided by -See reconciliation of GAAP to Non-GAAP measures in Appendix.(2)Adjusted PPNR, PPNR ROAA and PPNR per weighted average diluted share are Non-GAAP financial measures that exclude the impact of merger and branch consolidation related expense -See reconciliation of GAAP to Non-GAAP measures in Appendix.Slide11EndNotes(1)AdjustedPPNRperweightedaveragedilutedshares;thisisaNon-GAAPfinancialmeasurethatexcludestheimpactofmergerandbranchconsolidationrelatedexpense,gainonsaleofsecuritiesandextinguishmentofdebtcost-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix.Slide12EndNotes(1)TaxequivalentNIMisaNon-GAAPfinancialmeasure-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix.Slide13EndNotes(4)The combined historical information referred to in this presentation as the “Combined Business Basis” presented is based on the reported GAAP results of the Company and CenterStatefor the applicable periods without adjustments and the information included in this release has not been prepared in accordance with Article 11 of Regulation S-X, and therefore does not reflect any of the pro forma adjustments that would be required thereby.All Combined Business Basis financial information should be reviewed in connection the historical information of the Company and CenterState, as applicable. The combined historical information excludes ACBI.Slide15EndNotes(1)Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable.ThecombinedhistoricalinformationexcludesACBI.(2)AsaresultoftheconversionoflegacyCenterState’scoresystemtotheCompany’scoresystemcompletedin2Q2021,severalloanswerereclassifiedtoconformwiththeCompany’sloansegmentation,mostnotablyresidentialinvestmentloanswhichwerereclassedfromconsumerR/Etoinvestorcommercialrealestatecategory.ConsumerR/Eloansasof1Q20andasofpriorperiods,therefore,werereportedbasedonthepre-reclassificationfigures.TheCompanyestimatedre-classificationsforthe2Q20from1Q20andforthe1Q20from4Q19growthpercentagesforthecomparisonpurposes.Slide20EndNotes<br>(1)Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable.
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45EARNINGS PRESENTATION END NOTESSlide26EndNotes(1)Thetangiblemeasuresarenon-GAAPmeasuresandexcludetheeffectofperiodendbalanceofintangibleassets-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix.Slide30EndNotes(1)Thetangiblemeasureisanon-GAAPmeasureandexcludestheeffectofperiodendbalancesofintangibleassets-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix.Slide32EndNotes(1)Total revenue and noninterest income are adjusted by securities gains or losses; Tax equivalent NIM, efficiency ratio and adjusted efficiency ratio are Non-GAAP financial measures; Adjusted Efficiency Ratio excludes the impact of merger and branch consolidation related expense, securities gains or losses, extinguishment of debtcost, and amortization expense on intangible assets, as applicable –See Current & Historical Efficiency Ratio and Net Interest Margin reconciliation in Appendix.Slide 42 End Notes(1)The combined historical information referred to in this presentation as the “Combined Business Basis” presented is based on the reported GAAP results of the Company and CenterStatefor the applicable periods without adjustments and the information included in this release has not been prepared in accordance with Article 11 of Regulation S-X, and therefore does not reflect any of the pro forma adjustments that would be required thereby.The combined historical information excludes ACBI.
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