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): April 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 April 28, 2022, SouthState Corporation (“SouthState” or the “Company”) issued a press release announcing its financial results for the three-month period ended March 31, 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 April 29, 2022 at 10 a.m. (ET) to discuss the Company’s first 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 524033; host: Will Matthews, CFO).


Item 7.01				Regulation FD Disclosure

On April 28, 2022, the Company also made available the presentation (“Presentation”) prepared for use with the press release during the earnings conference call on April 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

Second Quarter 2022 Shareholder Dividend

The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.49 per share. The dividend is payable on May 20, 2022 to shareholders of record as of May 13, 2022.


Item 9.01		Financial Statements and Exhibits.

	(d)	Exhibits:

	Exhibit No.	Description

	Exhibit 99.1	Press Release, dated April 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 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 CSFL 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 parties are unable to successfully integrate each party’s businesses into the other’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 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; (5) 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; (6) 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; (7) 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; (8) potential deterioration in real estate values; (9) 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; (10) risks relating to the ability to retain our culture and attract and retain qualified people; (11) 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; (12) risks related to the ability of the company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (13) liquidity risk affecting the Bank’s ability to meet its obligations when they come due; (14) 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; (15) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (16) transaction risk arising from problems with service or product delivery; (17) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (18) 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); (19) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (20) reputation risk that adversely affects earnings or capital arising from negative public opinion; (21) 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; (22) 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; (23) greater than expected noninterest expenses; (24) excessive loan losses; (25) 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; (26) reputational risk and possible higher than estimated reduced revenue from3

announced changes in the Bank’s consumer overdraft programs; (27) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (28) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations as well as the discretion of the board of directors of SouthState, SouthState’s performance and other factors; (29) ownership dilution risk associated with potential acquisitions in which SouthState’s stock may be issued as consideration for an acquired company; (30) 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; (31) 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; (32) terrorist activities risk that results in loss of consumer confidence and economic disruptions; and (33) 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: April 28, 2022

Exhibit 99.1

<br><br><br><br>
SouthState Corporation Reports First Quarter 2022 Results<br><br>Declares Quarterly Cash Dividend	For Immediate Release
		Media Contact
		Jackie Smith, 803.231.3486

WINTER HAVEN, FL – April 28, 2022 – SouthState Corporation (NASDAQ: SSB) today released its unaudited results of operations and other financial information for the three-month period ended March 31, 2022.

The Company reported consolidated net income of $1.39 per diluted common share for the three months ended March 31, 2022, compared to $1.52 per diluted common share for the three months ended December 31, 2021, and compared to $2.06 per diluted common share one year ago.

Adjusted net income (non-GAAP) totaled $1.69 per diluted share for the three months ended March 31, 2022, compared to $1.59 per diluted share for the three months ended December 31, 2021, and compared to $2.17 per diluted share one year ago. Adjusted net income in the first quarter of 2022 excludes $13.5 million of initial provision for credit losses (“PCL”) (after-tax) on nonPCD loans and unfunded commitments (“UFC”) acquired from Atlantic Capital Bancshares, Inc. (“ACBI”) and $8.1 million of merger-related costs (after-tax). The ACBI merger was completed on March 1, 2022.

“We had a good first quarter, with strength across the company. We are pleased with our revenue, expenses, growth and asset quality, and we believe this is a good start to the year,” said John C. Corbett, Chief Executive Officer. “We are also pleased to have closed the Atlantic Capital acquisition and to join with Doug Williams and his team. Our presence in Atlanta and other great markets in the Southeast combined with an improving interest rate environment gives me great confidence about our future.”

Highlights of the first quarter of 2022 include:

Returns

●	Reported and Adjusted Diluted Earnings per Share (“EPS”) of $1.39^^ and $1.69^^ (Non-GAAP), respectively
●	Net Income and Adjusted Net Income of $100.3 million and $121.9 million (Non-GAAP), respectively
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●	Return on Average Common Equity of 8.24%^^ and Reported and Adjusted Return on Average Tangible Common Equity of 14.0%^^ (Non-GAAP) and 16.8%^*^^^(Non-GAAP), respectively
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●	Return on Average Assets (“ROAA”) and Adjusted ROAA of 0.95%^^ and 1.15%^^ (Non-GAAP), respectively
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●	Pre-Provision Net Revenue (“PPNR”) of $129.2 million (Non-GAAP), or 1.22%^*^ PPNR ROAA (Non-GAAP)
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●	Book Value per Share of $68.30 decreased by $0.97 per share compared to the prior quarter
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●	Tangible Book Value (“TBV”) per Share of $41.05 (Non-GAAP), down $3.57, or 8.0% from the prior quarter mainly attributable to the $3.60 per share impact from the change in AOCI and $1.21 from share repurchases
---	---
●	Recorded a negative provision for credit losses of $8.4 million, net of the $17.1 million initial provision recorded for nonPCD loans and UFC acquired from ACBI, compared to a negative provision for credit losses of $9.2 million in the prior quarter
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Performance

●	Net Interest Income of $261.5 million; Core Net Interest Income (non-GAAP) (excluding loan accretion and deferred fees on PPP) increased $9.0 million from prior quarter
●	Total deposit cost of 0.05%, down 1 basis point from prior quarter
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●	Noninterest Income of $86.1 million, down $5.8 million compared to the prior quarter, primarily due to a $2.2 million decrease in correspondent banking and capital market income, $1.5 million decrease in mortgage banking income, and a $1.4 million decrease in fee income on deposit accounts
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●	Noninterest Income represented 0.81% of average assets for the first quarter of 2022
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●	Noninterest Expense excluding merger-related cost (Non-GAAP) increased $932,000 compared to the prior quarter; with the ACBI acquisition closing March 1, one month of its expenses are included in the first quarter of 2022
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Balance Sheet / Credit

●	Fed funds and interest-earning cash of $5.4 billion represents 11.8% of assets and provides significant optionality in a rising rate environment
●	Loan to deposit ratio of 68%
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●	Loan production of $2.6 billion, excluding production by legacy ACBI
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*	Annualized
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●	Loans, excluding the acquisition date loan balances acquired from ACBI and PPP loans, increased $381.3 million, or 6.3% annualized
●	Deposits, excluding the acquisition date deposit balances acquired from ACBI, increased $692.4 million, or 7.5% annualized; total average deposits, excluding the acquisition date deposit balances from ACBI, increased $410.5 million, or 4.4% annualized, with core average deposit growth totaling $540.9 million, or 6.3% annualized
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●	60.2% of total deposits are checking, of which 36.2% are noninterest-bearing checking
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●	Net charge-offs of $2.3 million, or 0.04% annualized
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Capital Returns

●	Repurchased 1,012,038 shares during 1Q 2022 at a weighted average price of $85.43 and 300,000 shares repurchased in April 2022, bringing total 2022 repurchases to approximately 1.31 million shares at a weighted average price of $83.99

Subsequent Events

●	Declared a cash dividend on common stock of $0.49 per share, payable on May 20, 2022 to shareholders of record as of May 13, 2022
●	The Company announced it will be modifying its consumer overdraft program to eliminate NSF fees as well as transfer fees to cover overdrafts. It will also introduce a deposit product with no overdraft fees. The changes will be implemented starting in the third quarter and are estimated to reduce diluted annual earnings per share by approximately 8 to 10 cents.
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Financial Performance

---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Three Months Ended
(Dollars in thousands, except per share data)		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
INCOME STATEMENT		2022			2021			2021			2021			2021
Interest income
Loans, including fees (1)		$	233,617		$	238,310		$	246,065		$	246,177		$	259,967
Investment securities, trading securities, federal funds sold and securities
purchased under agreements to resell			36,847			29,071			25,384			21,364			18,509
Total interest income			270,464			267,381			271,449			267,541			278,476
Interest expense
Deposits			4,628			5,121			7,267			9,537			11,257
Federal funds purchased, securities sold under agreements
to repurchase, and other borrowings			4,362			4,156			4,196			4,874			5,221
Total interest expense			8,990			9,277			11,463			14,411			16,478
Net interest income			261,474			258,104			259,986			253,130			261,998
(Recovery) provision for credit losses			(8,449)			(9,157)			(38,903)			(58,793)			(58,420)
Net interest income after (recovery) provision for credit losses			269,923			267,261			298,889			311,923			320,418
Noninterest income			86,090			91,894			87,010			79,020			96,285
Noninterest expense
Pre-tax operating expense			218,324			217,392			214,672			218,707			218,702
Merger and/or branch consolid. expense			10,276			6,645			17,618			32,970			10,009
Extinguishment of debt cost			—			—			—			11,706			—
Total noninterest expense			228,600			224,037			232,290			263,383			228,711
Income before provision for income taxes			127,413			135,118			153,609			127,560			187,992
Income taxes provision			27,084			28,272			30,821			28,600			41,043
Net income		$	100,329		$	106,846		$	122,788		$	98,960		$	146,949

Adjusted net income (non-GAAP) (2)
Net income (GAAP)		$	100,329		$	106,846		$	122,788		$	98,960		$	146,949
Securities gains, net of tax			—			(2)			(51)			(28)			—
Initial provision for credit losses - NonPCD loans and UFC, net of tax			13,492			—			—			—			—
Merger and/or branch consolid. expense, net of tax			8,092			5,255			14,083			25,578			7,824
Extinguishment of debt cost, net of tax			—			—			—			9,081			—
Adjusted net income (non-GAAP)		$	121,913		$	112,099		$	136,820		$	133,591		$	154,773

Basic earnings per common share		$	1.40		$	1.53		$	1.75		$	1.40		$	2.07
Diluted earnings per common share		$	1.39		$	1.52		$	1.74		$	1.39		$	2.06
Adjusted net income per common share - Basic (non-GAAP) (2)		$	1.71		$	1.61		$	1.95		$	1.89		$	2.18
Adjusted net income per common share - Diluted (non-GAAP) (2)		$	1.69		$	1.59		$	1.94		$	1.87		$	2.17
Dividends per common share		$	0.49		$	0.49		$	0.49		$	0.47		$	0.47
Basic weighted-average common shares outstanding			71,447,429			69,651,334			70,066,235			70,866,193			71,009,209
Diluted weighted-average common shares outstanding			72,110,746			70,289,971			70,575,726			71,408,888			71,484,490
Effective tax rate			21.26%			20.92%			20.06%			22.42%			21.83%

Performance and Capital Ratios


		Three Months Ended
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
		2022			2021			2021			2021			2021
PERFORMANCE RATIOS
Return on average assets (annualized)			0.95	%		1.02	%		1.20	%		1.00	%		1.56	%
Adjusted return on average assets (annualized) (non-GAAP) (2)			1.15	%		1.08	%		1.34	%		1.35	%		1.64	%
Return on average common equity (annualized)			8.24	%		8.84	%		10.21	%		8.38	%		12.71	%
Adjusted return on average common equity (annualized) (non-GAAP) (2)			10.01	%		9.28	%		11.37	%		11.31	%		13.39	%
Return on average tangible common equity (annualized) (non-GAAP) (3)			13.97	%		14.63	%		16.86	%		14.12	%		21.16	%
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)			16.79	%		15.30	%		18.68	%		18.74	%		22.24	%
Efficiency ratio (tax equivalent)			62.99	%		61.27	%		64.22	%		76.28	%		61.06	%
Adjusted efficiency ratio (non-GAAP) (4)			60.05	%		59.39	%		59.16	%		62.88	%		58.27	%
Dividend payout ratio (5)			33.71	%		32.02	%		27.94	%		33.65	%		22.72	%
Book value per common share		$	68.30		$	69.27		$	68.55		$	67.60		$	66.42
Tangible book value per common share (non-GAAP) (3)		$	41.05		$	44.62		$	43.98		$	43.07		$	42.02

CAPITAL RATIOS
Equity-to-assets			11.2	%		11.4	%		11.7	%		11.8	%		11.9
Tangible equity-to-tangible assets (non-GAAP) (3)			7.0	%		7.7	%		7.8	%		7.8	%		7.9
Tier 1 leverage (6) *			8.5	%		8.1	%		8.1	%		8.1	%		8.5
Tier 1 common equity (6) *			11.4	%		11.8	%		11.9	%		12.1	%		12.2
Tier 1 risk-based capital (6) *			11.4	%		11.8	%		11.9	%		12.1	%		12.2
Total risk-based capital (6) *			13.3	%		13.6	%		13.8	%		14.1	%		14.5
*	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)	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
BALANCE SHEET	2022		2021		2021		2021		2021
Assets
Cash and due from banks	$	588,372	$	476,653	$	597,321	$	529,434	$	392,556
Federal Funds Sold and interest-earning deposits with banks		5,444,234		6,366,494		5,701,002		5,875,078		5,581,581
Cash and cash equivalents		6,032,606		6,843,147		6,298,323		6,404,512		5,974,137

Trading securities, at fair value		74,234		77,689		61,294		89,925		83,947
Investment securities:
Securities held to maturity		2,827,769		1,819,901		1,641,485		1,189,265		1,214,313
Securities available for sale, at fair value		5,924,206		5,193,478		4,631,554		4,369,159		3,891,490
Other investments		179,258		160,568		160,592		160,607		161,468
Total investment securities		8,931,233		7,173,947		6,433,631		5,719,031		5,267,271
Loans held for sale		130,376		191,723		242,813		171,447		352,997
Loans:
Purchased credit deteriorated		1,939,033		1,987,322		2,255,874		2,434,259		2,680,466
Purchased non-credit deteriorated		7,633,824		5,890,069		6,554,647		7,457,950		8,433,913
Non-acquired		16,983,570		16,050,775		14,978,428		14,140,869		13,377,086
Less allowance for credit losses		(300,396)		(301,807)		(314,144)		(350,401)		(406,460)
Loans, net		26,256,031		23,626,359		23,474,805		23,682,677		24,085,005
Other real estate owned ("OREO")		3,290		2,736		3,687		5,039		11,471
Premises and equipment, net		568,332		558,499		569,817		568,473		569,171
Bank owned life insurance		942,922		783,049		778,552		773,452		562,624
Mortgage servicing rights		83,339		65,620		60,922		57,351		54,285
Core deposit and other intangibles		140,364		128,067		136,584		145,126		153,861
Goodwill		1,924,024		1,581,085		1,581,085		1,581,085		1,579,758
Other assets		1,114,790		928,111		1,262,195		1,177,751		1,035,805
Total assets	$	46,201,541	$	41,960,032	$	40,903,708	$	40,375,869	$	39,730,332

Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing	$	14,052,332	$	11,498,840	$	11,333,881	$	11,176,338	$	10,801,812
Interest-bearing		24,723,498		23,555,989		22,226,677		22,066,031		21,639,598
Total deposits		38,775,830		35,054,829		33,560,558		33,242,369		32,441,410
Federal funds purchased and securities
sold under agreements to repurchase		770,409		781,239		859,736		862,429		878,581
Other borrowings		405,553		327,066		326,807		351,548		390,323
Reserve for unfunded commitments		30,368		30,510		28,289		30,981		35,829
Other liabilities		1,044,973		963,448		1,335,377		1,130,919		1,264,369
Total liabilities		41,027,133		37,157,092		36,110,767		35,618,247		35,010,512

Shareholders' equity:
Common stock - $2.50 par value; authorized 160,000,000 shares		189,403		173,331		174,795		175,957		177,651
Surplus		4,214,897		3,653,098		3,693,622		3,720,946		3,772,248
Retained earnings		1,064,064		997,657		925,044		836,584		770,952
Accumulated other comprehensive (loss) income		(293,956)		(21,146)		(520)		24,136		(1,031)
Total shareholders' equity		5,174,408		4,802,940		4,792,941		4,757,623		4,719,820
Total liabilities and shareholders' equity	$	46,201,541	$	41,960,032	$	40,903,708	$	40,375,869	$	39,730,332

Common shares issued and outstanding		75,761,018		69,332,297		69,918,037		70,382,728		71,060,446

Net Interest Income and Margin


		Three Months Ended
		Mar. 31, 2022					Dec. 31, 2021					Mar. 31, 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		$	5,678,147	$	2,852	0.20%	$	6,070,349	$	2,224	0.15%	$	4,757,717	$	989	0.08%
Investment securities			7,895,281		33,995	1.75%		6,945,952		26,847	1.53%		4,683,152		17,520	1.52%
Loans held for sale			110,542		869	3.19%		206,920		1,526	2.93%		298,970		1,991	2.70%
Total loans, excluding PPP			24,675,512		231,373	3.80%		23,445,336		230,337	3.90%		22,302,393		235,945	4.29%
Total PPP loans			167,541		1,375	3.33%		363,083		6,447	7.04%		2,189,696		22,031	4.08%
Total loans held for investment			24,843,053		232,748	3.80%		23,808,419		236,784	3.95%		24,492,089		257,976	4.27%
Total interest-earning assets			38,527,023		270,464	2.85%		37,031,640		267,381	2.86%		34,231,928		278,476	3.30%
Noninterest-earning assets			4,419,309					4,328,068					4,013,482
Total Assets		$	42,946,332				$	41,359,708				$	38,245,410

Interest-Bearing Liabilities:
Transaction and money market accounts		$	17,473,192	$	2,217	0.05%	$	16,492,540	$	2,230	0.05%	$	14,678,248	$	5,387	0.15%
Savings deposits			3,408,129		130	0.02%		3,267,366		135	0.02%		2,780,361		434	0.06%
Certificates and other time deposits			2,848,829		2,281	0.32%		2,889,741		2,756	0.38%		3,672,818		5,436	0.60%
Federal funds purchased			354,899		111	0.13%		493,776		107	0.09%		434,943		92	0.09%
Repurchase agreements			438,258		158	0.15%		390,212		150	0.15%		417,334		259	0.25%
Other borrowings			354,133		4,093	4.69%		326,921		3,899	4.73%		390,043		4,870	5.06%
Total interest-bearing liabilities			24,877,440		8,990	0.15%		23,860,556		9,277	0.15%		22,373,747		16,478	0.30%
Noninterest-bearing liabilities ("Non-IBL")			13,131,727					12,704,738					11,184,514
Shareholders' equity			4,937,165					4,794,414					4,687,149
Total Non-IBL and shareholders' equity			18,068,892					17,499,152					15,871,663
Total Liabilities and Shareholders' Equity		$	42,946,332				$	41,359,708				$	38,245,410
Net Interest Income and Margin (Non-Tax Equivalent)				$	261,474	2.75%			$	258,104	2.77%			$	261,998	3.10%
Net Interest Margin (Tax Equivalent)						2.77%					2.78%					3.12%
Total Deposit Cost (without Debt and Other Borrowings)						0.05%					0.06%					0.15%
Overall Cost of Funds (including Demand Deposits)						0.10%					0.10%					0.21%

Total Accretion on Acquired Loans (1)				$	6,741				$	7,707				$	10,416
Total Deferred Fees on PPP Loans				$	983				$	5,655				$	20,402
TEFRA (included in NIM, Tax Equivalent)				$	1,885				$	1,734				$	1,286
(1)	The remaining loan discount on acquired loans to be accreted into loan interest income totals $100.7 million and the remaining net deferred fees on PPP loans totals $658,000 **** as of March 31, 2022.
---	---

Noninterest Income and Expense


	Three Months Ended
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
(Dollars in thousands)	2022		2021		2021		2021		2021
Noninterest Income:
Fees on deposit accounts	$	28,902	$	30,293	$	26,130	$	23,936	$	25,282
Mortgage banking income		10,594		12,044		15,560		10,115		26,880
Trust and investment services income		9,718		9,520		9,150		9,733		8,578
Securities gains, net		—		2		64		36		—
Correspondent banking and capital market income		27,994		30,216		25,164		25,877		28,748
Bank owned life insurance income		5,260		4,932		5,132		5,047		3,300
Other		3,622		4,887		5,810		4,276		3,498
Total Noninterest Income	$	86,090	$	91,894	$	87,010	$	79,020	$	96,286

Noninterest Expense:
Salaries and employee benefits	$	137,673	$	137,321	$	136,969	$	137,379	$	140,361
Occupancy expense		21,840		22,915		23,135		22,844		23,331
Information services expense		19,193		18,489		18,061		19,078		18,789
OREO and loan related expense		(238)		(740)		1,527		240		1,002
Business development and staff related		4,276		4,577		4,424		4,305		3,371
Amortization of intangibles		8,494		8,517		8,543		8,968		9,164
Professional fees		3,749		2,639		2,415		2,301		3,274
Supplies and printing expense		2,189		2,179		2,310		2,500		2,670
FDIC assessment and other regulatory charges		4,812		4,965		4,245		4,931		3,841
Advertising and marketing		1,763		2,375		2,185		1,659		1,740
Other operating expenses		14,573		14,155		10,858		14,502		11,159
Branch consolidation and merger expense		10,276		6,645		17,618		32,970		10,009
Extinguishment of debt cost		—		—		—		11,706		—
Total Noninterest Expense	$	228,600	$	224,037	$	232,290	$	263,383	$	228,711

Loans and Deposits

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


	Ending Balance
(Dollars in thousands)	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
LOAN PORTFOLIO	2022		2021		2021		2021		2021
Construction and land development * †	$	2,316,313	$	2,029,216	$	2,032,731	$	1,947,646	$	1,888,240
Investor commercial real estate*		8,158,457		7,432,503		7,131,192		7,094,109		6,978,326
Commercial owner occupied real estate		5,346,583		4,970,116		4,988,490		4,895,189		4,817,346
Commercial and industrial, excluding PPP		4,447,279		3,516,485		3,458,520		3,121,625		3,140,893
Consumer real estate *		4,988,736		4,806,958		4,733,567		4,748,693		4,835,567
Consumer/other		1,179,697		928,240		943,243		907,181		885,320
Total loans, excluding PPP		26,437,065		23,683,518		23,287,743		22,714,443		22,545,692
PPP loans		119,362		244,648		501,206		1,318,635		1,945,773
Total Loans	$	26,556,427	$	23,928,166	$	23,788,949	$	24,033,078	$	24,491,465

As a result of the conversion of legacy CenterState’s core system to the Company’s core system completed in 2Q 2021, several loans were reclassified to conform with the Company’s loan segmentation, most notably residential investment loans which were reclassed from consumer real estate to investor commercial real estate.

* 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 $733.7 million, $686.5 million, $665.0 million, $599.4 million, and $559.5 million for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.


	Ending Balance
(Dollars in thousands)	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
DEPOSITS	2022		2021		2021		2021		2021
Noninterest-bearing checking	$	14,052,332	$	11,498,840	$	11,333,881	$	11,176,338	$	10,801,812
Interest-bearing checking		9,275,208		9,018,987		7,920,236		7,651,433		7,369,066
Savings		3,479,743		3,350,547		3,201,543		3,051,229		2,906,673
Money market		9,140,005		8,376,380		8,110,162		8,024,117		7,884,132
Time deposits		2,828,542		2,810,075		2,994,736		3,339,252		3,479,727
Total Deposits	$	38,775,830	$	35,054,829	$	33,560,558	$	33,242,369	$	32,441,410

Core Deposits (excludes Time Deposits)	$	35,947,288	$	32,244,754	$	30,565,822	$	29,903,117	$	28,961,683

Asset Quality


		Ending Balance
		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
(Dollars in thousands)		2022		2021		2021		2021		2021
NONPERFORMING ASSETS:
Non-acquired
Non-acquired nonaccrual loans and restructured loans on nonaccrual		$	19,582	$	18,700	$	23,800	$	16,065	$	20,181
Accruing loans past due 90 days or more *			22,818		4,612		1,729		559		853
Non-acquired OREO and other nonperforming assets			464		590		365		695		654
Total non-acquired nonperforming assets			42,864		23,902		25,894		17,319		21,688
Acquired
Acquired nonaccrual loans and restructured loans on nonaccrual			59,267		56,718		64,583		69,053		79,919
Accruing loans past due 90 days or more †			12,768		251		89		—		105
Acquired OREO and other nonperforming assets			3,118		2,875		3,804		4,777		11,292
Total acquired nonperforming assets			75,153		59,844		68,476		73,830		91,316
Total nonperforming assets		$	118,017	$	83,746	$	94,370	$	91,149	$	113,004
*	The increase in accrual loans past due 90 days or more for non-acquired loans as of March 31, 2022 compared to the prior quarter was primarily due to factored receivables, which are trade credits rather than promissory notes. Since quarter-end and as of April 28, 2022, approximately $11.6 million of these invoices have been collected.
---	---

† The increase in accrual loans past due 90 days or more for acquired loans as of March 31, 2022 compared to the prior quarter was mainly attributable to the loans acquired from the ACBI merger.


	Three Months Ended
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2022		2021		2021		2021		2021
ASSET QUALITY RATIOS:
Allowance for credit losses as a percentage of loans		1.13%		1.26%		1.32%		1.46%		1.66%
Allowance for credit losses as a percentage of loans, excluding PPP loans		1.14%		1.27%		1.35%		1.54%		1.80%
Allowance for credit losses as a percentage of nonperforming loans		262.50%		375.94%		348.27%		408.98%		402.20%
Net (recoveries) charge-offs as a percentage of average loans (annualized)		0.04%		0.02%		0.00%		0.03%		(0.00)%
Total nonperforming assets as a percentage of total assets		0.26%		0.20%		0.23%		0.23%		0.28%
Nonperforming loans as a percentage of period end loans		0.43%		0.34%		0.38%		0.36%		0.41%

Current Expected Credit Losses (“CECL”)

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


	Allowance for Credit Losses ("ACL and UFC")
	NonPCD ACL		PCD ACL		Total ACL		UFC
Ending Balance 12/31/2021	$	225,227	$	76,580	$	301,807	$	30,510
ACL - PCD loans from ACBI		—		9,218		9,218		—
Initial provision for credit losses - ACBI		13,697		—		13,697		3,437
Charge offs		(3,523)		—		(3,523)		—
Acquired charge offs		(601)		(1,367)		(1,968)		—
Recoveries		1,573		—		1,573		—
Acquired recoveries		717		879		1,596		—
(Recovery) provision for credit losses		(9,261)		(12,743)		(22,004)		(3,579)
Ending balance 3/31/2022	$	227,829	$	72,567	$	300,396	$	30,368

Period end loans (includes PPP Loans)	$	24,617,394	$	1,939,033	$	26,556,427		N/A
Reserve to Loans (includes PPP Loans)		0.93%		3.74%		1.13%		N/A
Period end loans (excludes PPP Loans)	$	24,498,032	$	1,939,033	$	26,437,065		N/A
Reserve to Loans (excludes PPP Loans)		0.93%		3.74%		1.14%		N/A
Unfunded commitments (off balance sheet) *							$	7,394,045
Reserve to unfunded commitments (off balance sheet)								0.41%

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

Conference Call

The Company will host a conference call to discuss its first quarter results at 10:00 a.m. Eastern Time on April 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 524033.

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 April 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)	Three Months Ended
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP)	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021
Net income (GAAP)	$	100,329		$	106,846		$	122,788		$	98,960		$	146,949
(Recovery) provision for credit losses		(8,449)			(9,157)			(38,903)			(58,793)			(58,420)
Tax provision		27,084			28,272			30,821			28,600			41,043
Merger-related costs		10,276			6,645			17,618			32,970			10,009
Extinguishment of debt costs		—			—			—			11,706			—
Securities gains		—			(2)			(64)			(36)			—
Pre-provision net revenue (PPNR) (Non-GAAP)	$	129,240		$	132,604		$	132,260		$	113,407		$	139,581

Average asset balance (GAAP)	$	42,946,332		$	41,359,708		$	40,593,766		$	39,832,752		$	38,245,410

PPNR ROAA		1.22	%		1.27	%		1.29	%		1.14	%		1.48	%


(Dollars in thousands)	Three Months Ended
CORE NET INTEREST INCOME (NON-GAAP)	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Net interest income (GAAP)	$	261,474	$	258,104	$	259,986	$	253,130	$	261,998
Less:
Total accretion on acquired loans		6,741		7,707		5,243		6,292		10,416
Total deferred fees on PPP loans		983		5,655		16,369		14,232		20,402
Core net interest income (Non-GAAP)	$	253,750	$	244,742	$	238,374	$	232,606	$	231,180


	Three Months Ended
(Dollars in thousands, except per share data)	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
RECONCILIATION OF GAAP TO NON-GAAP	2022			2021			2021			2021			2021
Adjusted Net Income (non-GAAP) (2)
Net income (GAAP)	$	100,329		$	106,846		$	122,788		$	98,960		$	146,949
Securities gains, net of tax		—			(2)			(51)			(28)			—
PCL - NonPCD loans and UFC, net of tax		13,492			—			—			—			—
Merger and branch consolidation/acq. expense, net of tax		8,092			5,255			14,083			25,578			7,824
Extinguishment of debt cost, net of tax		—			—			—			9,081			—
Adjusted net income (non-GAAP)	$	121,913		$	112,099		$	136,820		$	133,591		$	154,773

Adjusted Net Income per Common Share - Basic (2)
Earnings per common share - Basic (GAAP)	$	1.40		$	1.53		$	1.75		$	1.40		$	2.07
Effect to adjust for securities gains		—			(0.00)			(0.00)			(0.00)			—
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		0.19			—			—			—			—
Effect to adjust for merger and branch consol./acq expenses, net of tax		0.12			0.08			0.20			0.36			0.11
Effect to adjust for extinguishment of debt cost		—			—			—			0.13			—
Adjusted net income per common share - Basic (non-GAAP)	$	1.71		$	1.61		$	1.95		$	1.89		$	2.18

Adjusted Net Income per Common Share - Diluted (2)
Earnings per common share - Diluted (GAAP)	$	1.39		$	1.52		$	1.74		$	1.39		$	2.06
Effect to adjust for securities gains		—			(0.00)			(0.00)			(0.00)			—
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		0.19			—			—			—			—
Effect to adjust for merger and branch consol./acq expenses, net of tax		0.11			0.07			0.20			0.35			0.11
Effect to adjust for extinguishment of debt cost		—			—			—			0.13			—
Adjusted net income per common share - Diluted (non-GAAP)	$	1.69		$	1.59		$	1.94		$	1.87		$	2.17

Adjusted Return on Average Assets (2)
Return on average assets (GAAP)		0.95	%		1.02	%		1.20	%		1.00	%		1.56	%
Effect to adjust for securities gains		—	%		(0.00)	%		(0.00)	%		(0.00)	%		—	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		0.13	%		—	%		—	%		—	%		—	%
Effect to adjust for merger and branch consol./acq expenses, net of tax		0.07	%		0.06	%		0.14	%		0.26	%		0.08	%
Effect to adjust for extinguishment of debt cost		—	%		—	%		—	%		0.09	%		—	%
Adjusted return on average assets (non-GAAP)		1.15	%		1.08	%		1.34	%		1.35	%		1.64	%

Adjusted Return on Average Common Equity (2)
Return on average common equity (GAAP)		8.24	%		8.84	%		10.21	%		8.38	%		12.71	%
Effect to adjust for securities gains		—	%		(0.00)	%		(0.00)	%		(0.00)	%		—	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		1.11	%		—	%		—	%		—	%		—	%
Effect to adjust for merger and branch consol./acq expenses, net of tax		0.66	%		0.44	%		1.16	%		2.16	%		0.68	%
Effect to adjust for extinguishment of debt cost		—	%		—	%		—	%		0.77	%		—
Adjusted return on average common equity (non-GAAP)		10.01	%		9.28	%		11.37	%		11.31	%		13.39	%

Return on Average Common Tangible Equity (3)
Return on average common equity (GAAP)		8.24	%		8.84	%		10.21	%		8.38	%		12.71	%
Effect to adjust for intangible assets		5.73	%		5.79	%		6.65	%		5.74	%		8.45
Return on average tangible equity (non-GAAP)		13.97	%		14.63	%		16.86	%		14.12	%		21.16	%

Adjusted Return on Average Common Tangible Equity (2) (3)
Return on average common equity (GAAP)		8.24	%		8.84	%		10.21	%		8.38	%		12.71	%
Effect to adjust for securities gains		—	%		(0.00)	%		(0.00)	%		(0.00)	%		—	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		1.11	%		—	%		—	%		—	%		—	%
Effect to adjust for merger and branch consol./acq expenses, net of tax		0.66	%		0.43	%		1.17	%		2.16	%		0.68	%
Effect to adjust for extinguishment of debt cost		—	%		—	%		—	%		0.77	%		—
Effect to adjust for intangible assets		6.78	%		6.03	%		7.30	%		7.43	%		8.85	%
Adjusted return on average common tangible equity (non-GAAP)		16.79	%		15.30	%		18.68	%		18.74	%		22.24	%

Adjusted Efficiency Ratio (4)
Efficiency ratio		62.99	%		61.27	%		64.22	%		76.28	%		61.06	%
Effect to adjust for merger and branch consolidation related expenses		(2.94)	%		(1.89)	%		(5.06)	%		(13.38)	%		(2.79)	%
Adjusted efficiency ratio		60.05	%		59.39	%		59.16	%		62.88	%		58.26	%

Tangible Book Value Per Common Share (3)
Book value per common share (GAAP)	$	68.30		$	69.27		$	68.55		$	67.60		$	66.42
Effect to adjust for intangible assets		(27.25)			(24.65)			(24.57)			(24.53)			(24.40)
Tangible book value per common share (non-GAAP)	$	41.05		$	44.62		$	43.98		$	43.07		$	42.02

Tangible Equity-to-Tangible Assets (3)
Equity-to-assets (GAAP)		11.20	%		11.45	%		11.72	%		11.78	%		11.88	%
Effect to adjust for intangible assets		(4.15)	%		(3.76)	%		(3.87)	%		(3.94)	%		(4.02)	%
Tangible equity-to-tangible assets (non-GAAP)		7.05	%		7.69	%		7.85	%		7.84	%		7.86	%

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 $6.7 million, $7.7 million, $5.2 million, $6.3 million, and $10.4 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 and initial PCL on nonPCD loans and unfunded commitments from acquisitions. 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 $10.3 million, $6.6 million, $17.6 million, $33.0 million, and $10.0 million for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 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; and (c) initial PCL on nonPCD loans and unfunded commitments acquired from ACBI of $17.1 million for the quarter ended March 31, 2022.
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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 branch consolidation cost and merger cost 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 $8.5 million, $8.5 million, $8.5 million, $9.0 million, and $9.2 million, for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 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)	March 31, 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

integration of potential future acquisitions, whether involving stock or cash consideration; (31) 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; (32) terrorist activities risk that results in loss of consumer confidence and economic disruptions; and (33) 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.

Exhibit 99.2

Earnings Call 1Q 2022 Friday, April 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)risksrelatedtothemergerandintegrationofSouthStateandCSFLincluding,amongothers,(i)theriskthatthecostsavingsandanyrevenuesynergiesfromthemergermaynotbefullyrealizedormaytakelongerthananticipatedtoberealized,(ii)theriskthatthepartiesareunabletosuccessfullyintegrateeachparty’sbusinessesintotheother’sbusinesses,(iii)theamountofthecosts,fees,expensesandchargesrelatedtothemerger,and(iv)reputationalriskandthereactionofeachcompany'scustomers,suppliers,employeesorotherbusinesspartnerstothemerger;(4)risksrelatedtothemergerandintegrationofSouthStateandAtlanticCapitalincluding,amongothers,(i)theriskthatthecostsavingsandanyrevenuesynergiesfromthemergermaynotbefullyrealizedormaytakelongerthananticipatedtoberealized,(ii)theriskthattheintegrationofAtlanticCapital’soperationsintoSouthState’soperationswillbemateriallydelayedorwillbemorecostlyordifficultthanexpectedorthatthepartiesareotherwiseunabletosuccessfullyintegrateAtlanticCapital’sbusinessesintoSouthState’sbusinesses,(iii)theamountofthecosts,fees,expensesandchargesrelatedtothemerger,and(iv)reputationalriskandthereactionofeachcompany'scustomers,suppliers,employeesorotherbusinesspartnerstothemerger;(5)risksrelatingtothe<br>continuedimpactoftheCovid19pandemicontheCompany,includingpossibleimpacttotheCompanyanditsemployeesfromcontactingCovid19,andtoefficienciesandthecontrolenvironmentduetothechangingworkenvironmentandtoourresultsofoperationsduetogovernmentstimulusandotherinterventionstomitigatetheimpactofthepandemic;(6)theimpactofincreasingdigitizationofthebankingindustryandmovementofcustomerstoon-lineplatforms,andthepossibleimpactontheBank’sresultsofoperations,customerbase,expenses,suppliersandoperations;(7)controlsandproceduresrisk,includingthepotentialfailureorcircumventionofourcontrolsandproceduresorfailuretocomplywithregulationsrelatedtocontrolsandprocedures;(8)potentialdeteriorationinrealestatevalues;(9)theimpactofcompetitionwithotherfinancialinstitutions,includingpricingpressures(includingthoseresultingfromtheCARESAct)andtheresultingimpact,includingasaresultofcompressiontonetinterestmargin;(10)risksrelatingtotheabilitytoretainourcultureandattractandretainqualifiedpeople;(11)creditrisksassociatedwithanobligor’sfailuretomeetthetermsofanycontractwiththebankorotherwisefailtoperformasagreedunderthetermsofanyloan-relateddocument;(12)risksrelatedtotheabilityofthecompanytopursueitsstrategicplanswhichdependuponcertaingrowthgoalsinourlinesofbusiness;(13)liquidityriskaffectingtheBank’sabilitytomeetitsobligationswhentheycomedue;(14)risksassociatedwithananticipatedincreaseinSouthState’sinvestmentsecuritiesportfolio,includingrisksassociatedwithacquiringandholdinginvestmentsecuritiesorpotentiallydeterminingthattheamountofinvestmentsecuritiesSouthStatedesirestoacquirearenotavailableontermsacceptabletoSouthState;(15)priceriskfocusingonchangesinmarketfactorsthatmayaffectthevalueoftradedinstrumentsin“mark-to-market”portfolios;(16)transactionriskarisingfromproblemswithserviceorproductdelivery;(17)complianceriskinvolvingrisktoearningsorcapitalresultingfromviolationsofornonconformancewithlaws,rules,regulations,prescribedpractices,orethicalstandards;(18)regulatorychangeriskresultingfromnewlaws,rules,regulations,accounting<br>principles,proscribedpracticesorethicalstandards,including,withoutlimitation,thepossibilitythatregulatoryagenciesmayrequirehigherlevelsofcapitalabovethecurrentregulatory-mandatedminimumsandincludingtheimpactoftheCARESAct,theConsumerFinancialProtectionBureauregulations,andthepossibilityofchangesinaccountingstandards,policies,principlesandpractices,includingchangesinaccountingprinciplesrelatingtoloanlossrecognition(CECL);(19)strategicriskresultingfromadversebusinessdecisionsorimproperimplementationofbusinessdecisions;(20)reputationriskthatadverselyaffectsearningsorcapitalarisingfromnegativepublicopinion;(21)cybersecurityriskrelatedtothedependenceofSouthStateoninternalcomputersystemsandthetechnologyofoutsideserviceproviders,aswellasthepotentialimpactsofinternalorexternalsecuritybreaches,whichmaysubjectthecompanytopotentialbusinessdisruptionsorfinanciallossesresultingfromdeliberateattacksorunintentionalevents;(22)reputationalandoperationalrisksassociatedwithenvironment,socialandgovernance(ESG)matters,includingtheimpactofrecentlyissuedproposedregulatoryguidanceandregulationrelatingtoclimatechange;(23)greaterthanexpectednoninterestexpenses;(24)excessiveloanlosses;(25)potentialdepositattrition,higherthanexpectedcosts,customerlossandbusinessdisruptionassociatedwiththeAtlanticCapitalintegration,andpotentialdifficultiesinmaintainingrelationshipswithkeypersonnel;(26)reputationalriskandpossiblehigherthanestimatedreducedrevenuefromannouncedchangesintheBank’sconsumeroverdraftprograms;(27)therisksoffluctuationsinmarketpricesforSouthStatecommonstockthatmayormaynotreflecteconomicconditionorperformanceofSouthState;(28)thepaymentofdividendsonSouthStatecommonstock,whichissubjecttolegalandregulatorylimitationsaswellasthediscretionoftheboardofdirectorsofSouthState,SouthState’sperformanceandotherfactors;(29)ownershipdilutionriskassociatedwithpotentialacquisitionsinwhichSouthState’sstockmaybeissuedasconsiderationforanacquiredcompany;(30)operational,technological,cultural,regulatory,legal,creditandotherrisksassociatedwiththeexploration,consummationandintegrationofpotentialfutureacquisitions,whetherinvolvingstockorcashconsideration;(31)majorcatastrophessuchashurricanes,tornados,earthquakes,floodsorothernaturalorhumandisasters,includinginfectiousdiseaseoutbreaks,suchastheongoingCovid19pandemic,<br>andtherelateddisruptiontolocal,regionalandglobaleconomicactivityandfinancialmarkets,andtheimpactthatanyoftheforegoingmayhaveonSouthStateanditscustomersandotherconstituencies;(32)terroristactivitiesriskthatresultsinlossofconsumerconfidenceandeconomicdisruptions;and(33)otherfactorsthatmayaffectfutureresultsofSouthState,asdisclosedinSouthState’sAnnualReportonForm10-K,QuarterlyReportsonForm10-Q,andCurrentReportsonForm8-K,filedbySouthStatewiththeU.S.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>$27Billion in loans<br>$46Billion in assets<br>$5.8Billion market cap(1)FinancialmetricsasofMarch31,2022;marketcapasofApril27,2022SouthState CorporationOverview of Franchise (1)3<br>(283)<br>#1 in Florida#2 in Georgia #3 in South CarolinaTop 30Forbes 100 Best<br>Banks in<br>America<br>2022<br>Ranked #30by S&P Global<br>16Greenwich<br>Excellence<br>and Best<br>Brand awards<br>from Coalition<br>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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5<br>5
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STRONG POPULATION GROWTH TRENDS6•SouthState is located in four of the top six states for highest population growth over the past year•The four states highlighted below represent 93% of SouthState’s total deposits<br>Source: U.S. Census Bureau, December 20216<br>Rank<br>State<br>April 1, 2020 (Estimates Base)<br>July 1, 2020July 1, 2021<br>Population Growth (actual)<br>1Texas29,145,50529,217,65329,527,941310,288<br>2Florida21,538,18721,569,93221,781,128211,196<br>3Arizona7,151,5027,177,9867,276,31698,330<br>4North Carolina10,439,38810,457,17710,551,16293,985<br>5Georgia10,711,90810,725,80010,799,56673,766<br>6South Carolina5,118,4255,130,7295,190,70559,976<br>7Utah3,271,6163,281,6843,337,97556,291<br>8Tennessee6,910,8406,920,1196,975,21855,099<br>9Idaho1,839,1061,847,7721,900,92353,151<br>10Nevada3,104,6143,114,0713,143,99129,920<br>Top 10 States in Population Growth (July 2020 to July 2021)
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INVESTMENT THESIS7<br>•True alternative to the largest banks with capital markets platform and upgraded technology solutions•High growth markets•Low-cost core deposit base•Diversified revenue streams •Strong credit quality and disciplined underwriting •Energetic and experienced management team with entrepreneurial<br>ownership culture
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Quarterly Results
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HIGHLIGHTS	LINKED QUARTER<br>Dollars in millions, except per share dataThetangiblemeasuresarenon-GAAPmeasuresandexcludetheeffectofperiodendoraveragebalanceofintangibleassets.Thetangiblereturnsonequityandcommonequitymeasuresalsoaddbacktheafter-taxamortizationofintangiblestoGAAPbasisnetincome;otheradjustedfigurespresentedarealsoNon-GAAPfinancialmeasuresthatexcludetheimpactofbranchconsolidationandmerger-relatedexpenses,securitiesgainsorlossesandinitialPCLonnonPCDloansandunfundedcommitmentsacquiredfromACBI-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix9<br>4Q211Q22GAAPNet Income$106.8$100.3EPS (Diluted)$1.52$1.39Return on AverageAssets1.02%0.95%Non-GAAPReturn on AverageTangible Common Equity14.63%13.97%Non-GAAP,Adjusted*Net Income$112.1$121.9EPS (Diluted)$1.59$1.69Return on AverageAssets1.08%1.15%Return on AverageTangible Common Equity15.30%16.79%
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(1)Adjustedfiguresaboveexcludetheimpactofmerger-relatedexpenses,securitiesgainsorlossesandinitialprovisionforcreditlossesonnonPCDloansandunfundedcommitmentsacquiredfromACBI;CorenetinterestincomeexcludingloanaccretionandnetdeferredfeesonPPPisalsoanon-GAAPfinancialmeasure-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix(2)AdjustedPPNRandPPNRROAAareNon-GAAPfinancialmeasuresthatexcludetheimpactofmerger-relatedexpensesandextinguishmentofdebtcost-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix(3)ExcludingacquisitiondateloanbalancesacquiredfromACBIandPPPloans(4)ExcludingloanaccretionandnetdeferredfeesonPPPloans10•Completed Atlantic Capital Bancshares, Inc. (“ACBI”) merger on March 1, 2022•Reported & adjusted diluted Earnings per Share (“EPS”)(1)of $1.39 and $1.69, respectively•Pre-Provision Net Revenue (“PPNR”)(2)of $129.2 million, or 1.22% PPNR ROAA(2)•Loans(3)increased $381.3 million, or 6.3% annualized from prior quarter•Corenet interest income(4)(non-GAAP)(1)increased $9.0 million from prior quarter•Noninterest income of $86.1 million, decreased by $5.8 million compared to 4Q 2021 •Net charge-offs of $2.3 million, or 0.04% annualized; negative provision for credit losses of $8.4 million, net of the $17.1 million initial provision recorded for nonPCD loans and UFC acquired from ACBI•Repurchased 1,012,038 shares during 1Q 2022 at a weighted average price of $85.43 and 300,000 shares repurchased in April 2022, bringing total 2022 repurchases to ~1.31 million shares at a weighted average price of $83.99QUARTERLY HIGHLIGHTS	1Q 2022
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$231.2 $232.6 $238.4 $244.7 $253.8 $30.8 $20.5 $21.6 $13.4 $7.7<br>$262.0<br>$253.1<br>$260.0<br>$258.1<br>$261.5 3.12%2.87%2.86%2.78%2.77%0.0%0.8%<br>1.6%2.4%3.2%<br> $120<br> $160<br> $200<br> $240<br> $280<br> $3201Q212Q213Q214Q211Q22$ in millions<br>Net Interest Income excld. Accretion<br>AccretionNet Interest Income<br>Net Interest Margin<br>Net Interest Income excluding accretion increased 10% from 1Q21 –1Q22<br>NET INTEREST MARGIN<br>DollarsinmillionsTaxequivalent**AccretionincludesPPPloansdeferredfeesandloandiscountaccretionTaxequivalentNIMisNon-GAAPfinancialmeasures-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix11
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LOAN PRODUCTION VS LOAN GROWTH<br>Dollarsinmillions(1)ExcludesloansheldforsaleandPPP;loanproductionindicatescommittedbalancetotal;loanportfoliogrowthindicatesquarter-over-quarterloanendingbalancegrowth,excludingloansheldforsaleandPPPThecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable.ThecombinedhistoricalinformationexcludesACBI.1Q19loanproductionexcludesproductionfromNationalBankofCommerce(“NBC”);NationalCommerceCorporation,theholdingcompanyofNBC,wasacquiredbyCenterStatein2Q20191Q22loanproductionexcludesproductionbylegacyACBI;1Q22loanportfoliogrowthexcludesacquisitiondateloanbalancesacquiredfromACBI12<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*$180 $82 $267 $153 $180 $(372)$(277)$(155)$(185)$169 $573 $396 $381-$500$0$500$1,000$1,500$2,000$2,500<br>$3,000$3,5001Q192Q193Q194Q191Q202Q20*3Q204Q201Q212Q213Q214Q211Q22$ in millions<br>Loan Production (1)<br>Loan Portfolio Growth (1)
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QTD Production ($mm)$1,299$1,381$1,271<br>Refinance37%31%30%<br>Purchase63%69%70%MORTGAGE BANKING DIVISION<br>(1)Includes pipeline, LHFS and MBS forwards13<br>Highlights<br>Quarterly Mortgage Production<br>Gain on Sale Margin•Mortgage banking income of $10.6 million in 1Q 2022 compared to $12.0 million in 4Q 2021•Secondary pipeline at 1Q 2022 of $260 million, as compared to $254million at 4Q 2021<br>4.33%2.85%3.13%2.83%2.87%1Q212Q213Q214Q211Q22<br>Mortgage Banking Income ($mm)<br>53%47%1Q22<br>33%67%1Q21<br>Portfolio<br>Secondary<br>46%54%4Q21<br>1Q214Q211Q22<br>Secondary Market<br>Gain on Sale, net $ 26,673 $ 15,417 $ 14,381<br>Fair Value Change(1) (101) (5,081) (6,383)<br> Total Secondary Market Mortgage Income $ 26,572 $ 10,336 $ 7,998<br>MSR<br>Servicing Fee Income $ 3,196 $ 3,620 $ 3,837<br>Fair Value Change (2,888) (1,912) (1,241)<br> Total MSR-Related Income $ 308 $ 1,708 $ 2,596<br>Total Mortgage Banking Income $ 26,880 $ 12,044 $ 10,594
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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 DIVISION1,173 Financial Institution Clients14<br>$28.7<br>$25.9<br>$25.2<br>$30.2<br>$28.0 $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> $351Q212Q213Q214Q211Q22$ 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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CASH & SECURITIES<br>DollarsinbillionsThecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable,includedintheAppendixtothispresentation.ThecombinedhistoricalinformationexcludesACBI.16<br>$4.1 $4.4 $3.3 $3.7 $4.5 $5.3 $5.7 $6.4 $7.1 $8.9 $0.6 $2.0 $4.0 $4.1 $4.2 $5.6 $5.9 $5.7 $6.4 $5.4<br>$4.7B<br>$6.4B<br>$7.3B<br>$7.8B<br>$8.7B<br>$10.9B<br>$11.6B<br>$12.1B<br>$13.5B<br>$14.4B<br>1.80%1.38%0.69%0.65%0.86%1.32%1.59%1.33%1.53%1.98%0.0%0.5%1.0%<br>1.5%<br>2.0%<br>2.5%3.0%<br> $-<br> $3.0<br> $6.0<br> $9.0<br> $12.0<br> $15.04Q191Q20*2Q203Q204Q201Q212Q213Q214Q211Q22$ in billions<br>Investments ($)<br>Fed Funds & Int. Earning Cash ($)<br>Avg. 10-Yr Treasury
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EXCESS LIQUIDITY PROVIDES SIGNIFICANT TAILWIND<br>(1)Source:S&PGlobalMarketIntelligence;PeersasdisclosedinthemostrecentSSBproxystatement;The1Q22averagesarebasedonMRQsavailableasofApril28,2022Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable,includedintheAppendixtothispresentation.ThecombinedhistoricalinformationexcludesACBI.17<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>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%3.0%3.2%5.5%5.5%7.4%8.8%9.7%10.5%10.9%7.4%18.6%18.8%17.9%18.4%18.6%19.3%20.3%21.0%21.5%23.3%-1.0%3.0%7.0%11.0%15.0%<br>19.0%23.0%-1%4%9%14%<br>19%<br>24%4Q191Q202Q203Q204Q201Q212Q213Q214Q211Q22<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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36%34%30%Checking Accounts CompositionCommercialSmall BusinessRetail<br>Noninterest-bearing Checking$14.1BInterest-bearing Checking$9.3BSavings$3.5BMoney Market$9.1BTime Deposits$2.8B<br>Data as of March 31, 2022Dollars in billions except for average checking balances† Core deposits defined as non-time deposits(1) Source: S&P Global Market Intelligence; 1Q22 MRQs available as of April 27, 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$38.8 BillionDeposits by Type•Total cost of deposits for 1Q22: 5 bps•~ 831 thousand checking accounts / ~1.2 million total deposit accounts<br>Checking TypeAvg. Checking BalanceCommercial$272,700Small Business$55,900Retail$12,200
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INTEREST RATE RISK PROFILE<br>2.0%4.0%8.0%15.5%1.2%2.4%4.7%9.1%0%2%4%6%8%10%<br>12%<br>14%<br>16%<br>18%Up 25 bpsUp 50 bpsUp 100 bpsUp 200 bpsYear 1 Net Interest Income Sensitivity(1)<br>Instantaneous Shock<br>Ramp19<br>50.1%50.1%31.9%42.0%18.0%7.9%0%10%20%30%40%50%<br>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 assumes the April 2022 Moody’s Baseline forecast19
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4Q15 -2Q19 SouthState total deposit beta (including DDA) equal to 24%; deposit beta for first 100 bps increase equal to 5%WELL-POSITIONED FOR HIGHER RATES –HISTORICAL DEPOSIT BETA<br>Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable.HistoricdepositbetaexcludesACBI.20<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%0.16%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%0.0%0.5%<br>1.0%1.5%2.0%2.5%3.0%4Q151Q162Q163Q164Q161Q172Q173Q174Q171Q182Q183Q184Q181Q192Q19<br>Cost of Deposits<br>Average Fed Funds Rate<br>Average 5-YR UST
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Balance Sheet Strength
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$0.77 $0.66 $(0.99)$(3.60) $(9.00) $11.00 $31.00 $51.00<br>$39.13 $41.16 $44.62 $41.05 $1.88 $3.80 $4.29 $0.45 $2.54 $3.75<br>$39.13<br>$43.49<br>$50.96<br>$49.09 2019202020211Q22<br>Tangible Book Value per Share ("TBVPS")<br>Cumulative Dividends<br>Cumulative Repurchases per ShareChange in AOCI per Share<br>(1)Thetangiblemeasureisanon-GAAPmeasureandexcludestheeffectofperiodendbalancesofintangibleassets-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix22TANGIBLE BOOK VALUE PER SHARE(1) PLUS CAPITAL RETURN PER SHARE
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CAPITAL RETURN TO SHAREHOLDERS<br>$38.6$50.6$57.7$98.3$135.3$33.9$68.4$156.9$24.7$146.4$86.5<br>$38.6<br>$119.0<br>$214.6<br>$123.0<br>$281.7<br>$120.4 $0$80$160$240$320201720182019202020211Q22$ in millions<br>Dividends<br>Equity Repurchases23•Returned $120.4 million to shareholders in 1Q22 through share repurchases and dividends•1.3 million shares repurchased YTD represents 1.7%(1)of outstanding shares •Annualized dividend of $1.96 represents an attractive dividend yield of2.6%(2)<br>Dollars in millions(1)YTD repurchases of outstanding shares based on outstanding shares as of April 12, 2022(2)Dividend yield based on stock price as of April 27, 202223
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LOAN AND DEPOSIT TRENDS<br>$22.5 $22.7 $23.3 $23.7 $26.4 $1.9 $1.3 $0.5 $0.2 $0.1<br>$24.4B<br>$24.0B<br>$23.8B<br>$23.9B<br>$26.6B $22.0B $22.5B $23.0B<br> $23.5B $24.0B<br> $24.5B $25.0B $25.5B $26.0B $26.5B $27.0B<br> $-<br> $4<br> $8<br> $12<br> $16<br> $20<br> $24<br> $281Q212Q213Q214Q211Q22$ in billionsLoans(1)<br>Total Loans<br>PPP<br>Dollarsinbillions(1)Excludesloansheldforsale24<br>$10.8 $11.2 $11.4 $11.5 $14.1 $7.4 $7.7 $7.9 $9.0 $9.3 $10.8 $11.0 $11.3 $11.8 $12.6 $3.5 $3.3 $3.0 $2.8 $2.8<br>$32.4B<br>$33.2B<br>$33.6B<br>$35.1B<br>$38.8B $- $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 $30<br> $36<br> $421Q212Q213Q214Q211Q22$ in billionsDeposits<br>Noninterest-bearing Checking<br>Interest-bearing Checking<br>MMA & Savings<br>Time Deposits
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Investor CRE (2)31%Owner-Occupied CRE20%C&I17%Consumer RE19%Cons / Other4%CDL (1)9%TOTAL LOAN PORTFOLIO25<br>Data as of March 31, 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. & Land5,459$2.32B$424,300Investor CRE9,3588.16B871,800Owner-Occupied CRE8,3585.35B639,700C & I18,4854.44B240,600Consumer RE38,3304.99B130,200Cons / Other(3)45,7320.97B21,300Total(3)125,722$26.23B$208,600<br>Loan RelationshipsTop 10Represents ~ 2% of total loansTop 20Represents ~ 4% of total loansLoans by TypeTotal Loans$26.4 Billion
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ASSET QUALITY METRICS<br>(0.00)%0.03%0.00%0.02%0.04% (0.01)% -% 0.01% 0.02% 0.03% 0.04%<br> 0.05%1Q212Q213Q214Q211Q22Net Charge-Offs (Recoveries) to Loans<br>Dollarsinmillions(1)ExcludesloansheldforsaleandPPPloans<br>3.12%2.92%2.65%2.11%2.03%1.84%1.68%1.48%1.02%0.97%1.28%1.24%1.17%1.09%1.06%0%1%2%3%<br>4%1Q212Q213Q214Q211Q22Criticized & Classified Asset Trends<br>Combined<br>Special Mention / Assets<br>Substandard / Assets<br>0.46%0.38%0.40%0.35%0.44%<br>0.3%<br>0.4%<br>0.5%<br>0.6%1Q212Q213Q214Q211Q22Nonperforming Assets to Loans & OREO26
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Dollars in billionsData as of March 31, 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 unsettled trades as of March 31, 2022<br>1.52%1.49%1.51%1.53%1.75%<br>1.0%<br>1.5%<br>2.0%1Q212Q213Q214Q211Q22Investment Securities Yield (2)HIGH QUALITY INVESTMENT PORTFOLIO<br>74%13%7%6%Investment Portfolio†Composition<br>Agency MBS(1)<br>Municipal<br>Treasury & agency<br>Other27Total InvestmentPortfolio†$8.8 Billion<br>TypeAFS<br>HTM<br>BalanceDuration (yrs)(3)BalanceDuration (yrs)Agency MBS(1) $3.86B4.4$2.57B5.1Municipal$1.13B8.5--Treasury & agency$0.45B2.8$0.20B5.6Other $0.49B3.9$0.06B6.9Total$5.93B5.0$2.83B5.2<br>42%28%24%5%1%0.7%Municipal Bond Rating<br>AAA<br>AA+<br>AA<br>AA-<br>A+<br>A•94% of municipal portfolio is AA or higher rated
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CAPITAL RATIOS<br>(1)Preliminary* The tangible measures are non-GAAP measures and exclude the effect of period end balance of intangible assets -See reconciliation of GAAP to Non-GAAP measures in Appendix28<br>4Q211Q22(1)<br>Tangible Common Equity<br>*<br>7.7<br>%7.0%<br>Tier 1 Leverage<br>8.1<br>%8.5%<br>Tier 1 Common Equity<br>11.8<br>%11.4%<br>Tier 1 Risk-<br>Based Capital<br>11.8<br>%11.4%<br>Total Risk-<br>Based Capital<br>13.6<br>%13.3%<br>Bank<br>CRE Concentration Ratio<br>239<br>%243%<br>Bank CDL Concentration Ratio<br>55<br>%57%
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Appendix
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Dollarsinmillions(1)AdjustedPPNRisaNon-GAAPfinancialmeasurethatexcludestheimpactofmerger-relatedexpensesandextinguishmentofdebtcost-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendixAccretionincludesPPPloansdeferredfeesandloandiscountaccretionPPNR(1)30<br>$108.8 $92.9 $110.6 $119.2 $121.5 $30.8 $20.5 $21.6 $13.4 $7.7<br>$139.6<br>$113.4<br>$132.2<br>$132.6<br>$129.2 $- $50 $100 $150 $2001Q212Q213Q214Q211Q22$ in millions<br>PPNR excld. Accretion<br>Accretion *
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CURRENT & HISTORICAL 5-QTR PERFORMANCE<br>DollarsinmillionsTotalrevenueandnoninterestincomeareadjustedbysecuritiesgainsorlosses;TaxequivalentNIM,efficiencyratioandadjustedefficiencyratioareNon-GAAPfinancialmeasures;AdjustedEfficiencyRatioexcludestheimpactofbranchconsolidation,merger-relatedexpenses,securitiesgainsorlosses,extinguishmentofdebtcost,FHLBAdvancesprepaymentpenalty,swapterminationexpense,incometaxbenefitrelatedtothecarrybackoftaxlossesundertheCARESActandamortizationexpenseonintangibleassets,asapplicable–SeeCurrent&HistoricalEfficiencyRatioandNetInterestMarginreconciliationinAppendix31<br>3.12%2.87%2.86%2.78%2.77%1.0%1.5%<br>2.0%<br>2.5%3.0%3.5%4.0%4.5%<br> $200<br> $220<br> $240<br> $260<br> $280<br> $3001Q212Q213Q214Q211Q22$ in millionsNet Interest Margin (“NIM”)<br>NIM ($)<br>NIM (%)<br>73%76%75%74%76%27%24%25%26%24%<br>$358M<br>$332M<br>$347M<br>$350M<br>$348M<br>1.98%0.0%0.5%<br>1.0%1.5%2.0%<br>2.5%3.0%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>120%1Q212Q213Q214Q211Q22Revenue Composition<br>NIM / Revenue<br>Noninterest Income / Revenue<br>Avg. 10-year UST<br>Total Revenue<br>$96 $79 $87 $92 $86 1.02%0.80%0.85%0.88%0.81%0.4%0.5%0.6%0.7%<br>0.8%0.9%1.0%1.1%1.2%<br>1.3%1.4%<br> $-<br> $20<br> $40<br> $60<br> $80<br> $100<br> $120<br> $1401Q212Q213Q214Q211Q22$ in millionsNoninterest Income<br>Noninterest Income<br>Noninterest Income / Avg. Assets<br>61%76%64%61%63%58%63%59%59%60%<br>0%<br>15%<br>30%<br>45%<br>60%<br>75%<br>90%1Q212Q213Q214Q211Q22Efficiency Ratio<br>Efficiency Ratio<br>Adjusted Efficiency Ratio
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LOSS ABSORPTION CAPACITY	1Q 2022<br>Dollars in millions(1)Excludes PPP loans and loan held for sale(2)Includes mark on loans from ACBI and prior SSB acquisitions32<br>1Q22% of Total Loans(1)Allowance for Credit Losses (“ACL”)<br>Non-PCD ACL$227.8PCD ACL72.6Total ACL$300.41.14%Reserve for Unfunded Commitments<br>Reserve for unfunded commitments30.40.11%Total ACL plus Reserve for Unfunded Commitments$330.81.25%Unrecognized Discount –Acquired Loans (2)100.70.38%Loss Absorption Capacity$431.51.63%Total Loans Held for Investment (1)$26,437
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SIGNIFICANT PURCHASE ACCOUNTING MARKS(1)<br>Dollars in millions, unless otherwise noted(1)Loan marks are preliminary and are subject to changes upon finalization(2)Excludes LHFS33<br>Loan Balance (2)% of TotalCredit MarkInterest MarkTotal MarkNonPCD Loans~$2.3B95%~$20.5mm~0.9%~$14.4mm~0.6%~$34.9mm~1.5%PCD Loans~$0.1B5%~$9.2mm~8.2%~$4.5mm~4.0%~$13.7mm~12.2%Total$2.4B$29.7mm~1.2%$18.9mm~0.8%$48.7mm~2.0%−~$9.2 million credit mark on PCD loans (~8.2%); total interest discount of ~$4.5 million to be amortized into interest income over time−NonPCD credit mark of ~$20.5 million and total interest discount of ~$14.4 million totaling ~$34.9<br>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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BRANCH OPTIMIZATION<br>85 BranchesAverage Size $40M<br>422 Branches Acquired Plus12 DeNovo Branches<br>236 Branches Consolidated or Sold<br>283 BranchesAverage Size $137M<br>~<br>243%<br>growth in deposits per branch<br>854342362832009 …..……………..………..……....…………………………….. 1Q 202234
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TECHNOLOGY	DIGITAL352020-2022 Foundation System Conversion CompleteTech Stack with Best-in-Class SystemsTalent retained and in place for next phaseFuture•Strategic Talent Adds•Efficiency, Capacity, Automation•Data Analytics•Money Movement•Digital First<br>Mobile Deposits, ATM & RDC<br>Target:<br>Digital Only Sales<br>Best in Class<br>~ 50%<br>~ 50%<br>1Q2022<br>Consumer Loans<br>SBA 7A<br>Mortgage Loans<br>21%<br>Deposit Accounts<br>16%<br>11%<br>5%<br>~80%<br>Digital Deposits<br>32%
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DollarsinthousandsThetangiblemeasuresarenon-GAAPmeasuresandexcludetheeffectofperiodendoraveragebalanceofintangibleassets;thetangiblereturnsonequityandcommonequitymeasuresalsoaddbacktheafter-taxamortizationofintangiblestoGAAPbasisnetincome.36NON-GAAP RECONCILIATIONS –RETURN ON AVG. TANGIBLE COMMON EQUITY & PPNR RETURN ON AVG. ASSETS<br>Return on Average Tangible Equity4Q211Q22Net income (GAAP)106,846$ 100,329$ Plus:Amortization of intangibles8,517 8,494 Effective tax rate, excluding DTA write-off21% 21% Amortization of intangibles, net of tax6,735 6,688<br>Net income plus after-tax amortization of intangibles (non-GAAP)113,581$ 107,017$<br>Average shareholders' common equity, excluding preferred stock4,794,414$ 4,937,165$ Less:Average intangible assets1,713,8881,831,250Average tangible common equity3,080,526$ 3,105,915$ Return on Average Tangible Common Equity (Non-GAAP)14.6%14.0%PPNR Return on Average Assets 4Q211Q22PPNR, Adjusted (Non-GAAP)132,604$ 129,240$ Average assets 41,359,708 42,946,332 PPNR ROAA1.27%1.22%
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NON-GAAP RECONCILIATIONS –ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (“EPS”)<br>Dollarsinthousands,exceptforpersharedata37<br>Adjusted Net Income4Q211Q22Net income (GAAP)106,846$ 100,329$ Plus:Securities gains, net of tax(2) - Initial provision for credit losses - NonPCD loans and UFC from the ACBI merger, net of tax- 13,492 Merger and branch consolidation related expense, net of tax5,255 8,092 Adjusted Net Income (Non-GAAP)112,099$ 121,913$ Adjusted EPS 4Q211Q22Diluted weighted-average common shares70,290 72,111 Adjusted net income (non-GAAP)112,099$ 121,913$ Adjusted EPS, Diluted (Non-GAAP)1.59$ 1.69$
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NON-GAAP RECONCILIATIONS –ADJUSTED RETURN ON AVG. ASSETS & AVG. TANGIBLE COMMON EQUITY<br>DollarsinthousandsThetangiblemeasuresarenon-GAAPmeasuresandexcludetheeffectofperiodendoraveragebalanceofintangibleassets;thetangiblereturnsonequityandcommonequitymeasuresalsoaddbacktheafter-taxamortizationofintangiblestoGAAPbasisnetincome.Dollars in thousands, except for per share data38<br>Adjusted Return on Average Assets4Q211Q22Adjusted net income (non-GAAP)112,099$ 121,913$ Total average assets41,359,708 42,946,332 Adjusted Return on Average Assets (Non-GAAP)1.10%1.15%Adjusted Return on Average Tangible Common Equity4Q211Q22Adjusted net income (non-GAAP)112,099$ 121,913$ Plus:Amortization of intangibles, net of tax6,735 6,688 Adjusted net income plus after-tax amortization of intangibles (non-GAAP)118,834$ 128,601$ Average tangible common equity3,080,526$ 3,105,915$ Adjusted Return on Average Tangible Common Equity (Non-GAAP)15.64%16.79%
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NON-GAAP RECONCILIATIONS –NET INTEREST MARGIN & CORE NET INTEREST INCOME (EXCLD. FMV & PPP ACCRETION)<br>DollarsinthousandsDollars in thousands, except for per share data39<br>Net Interest Margin - Tax Equivalent (Non-GAAP)1Q212Q213Q214Q211Q22Net interest income (GAAP)261,998$ 253,130$ 259,986$ 258,104$ 261,474$ Tax equivalent adjustments1,286 1,424 1,477 1,734 1,885 Net interest income (tax equivalent) (Non-GAAP)263,284$ 254,554$ 261,463$ 259,838$ 263,359$ Average interest earning assets34,231,928$ 35,631,605$ 36,218,437$ 37,031,640$ 38,527,023$ Net Interest Margin - Tax Equivalent (Non-GAAP)3.12%2.87%2.86%2.78%2.77%Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP)4Q211Q22Net interest income (GAAP)258,104$ 261,474$ Less: Total accretion on acquired loans7,707 6,741 Deferred fees on PPP loans5,655 983 Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP)244,742$ 253,750$
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NON-GAAP RECONCILIATIONS –PPNR, ADJUSTED & CORRESPONDENT & CAPITAL MARKETS INCOME (UNAUDITED)<br>Dollarsinthousands40<br>PPNR, Adjusted (Non-GAAP)<br>1Q212Q213Q214Q211Q22<br>SSBSSBSSBSSBSSB<br>Net interest income (GAAP)261,998$ 253,130$ 259,986$ 258,104$ 261,474$<br>Plus:<br>Noninterest income 96,285 79,020 87,010 91,894 86,090<br>Less:<br>Gain on sale of securities- 36 64 2 -<br>Total revenue, adjusted (non-GAAP)358,283$ 332,114$ 346,932$ 349,996$ 347,564$<br>Less:<br>Noninterest expense228,711 263,383 232,290 224,037 228,600<br>PPNR (Non-GAAP)129,572$ 68,731$ 114,642$ 125,959$ 118,964$<br>Plus:<br>Merger and/or branch consolid. expense10,009 32,970 17,618 6,645 10,276<br>Extinguishment of debt cost- 11,706 - - -<br>Total adjustments10,009$ 44,676$ 17,618$ 6,645$ 10,276$<br>PPNR, Adjusted (Non-GAAP)139,581$ 113,407$ 132,260$ 132,604$ 129,240$<br>1Q212Q213Q214Q211Q22SSBSSBSSBSSBSSB<br>ARC revenues10,370$ 9,433$ 9,853$ 16,686$ 15,150$<br>FI revenues15,052 14,280 13,139 11,317 10,697<br>Operational revenues3,326 2,164 2,172 2,213 2,147<br>Total Correspondent & Capital Market Income28,748$ 25,877$ 25,164$ 30,216$ 27,994$<br>Correspondent & Capital Market Income
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NON-GAAP RECONCILIATIONS –CURRENT & HISTORICAL: EFFICIENCY RATIOS & NET INTEREST MARGIN(UNAUDITED)<br>Dollarsinthousands41<br>1Q212Q213Q214Q211Q22<br>SSBSSBSSBSSBSSB<br>Noninterest expense (GAAP)228,711$ 263,383$ 232,290$ 224,037$ 228,600$<br>Less: Amortization of intangible assets9,164 8,968 8,543 8,517 8,494<br>Adjusted noninterest expense (non-GAAP)219,547$ 254,415$ 223,747$ 215,520$ 220,106$<br>Net interest income (GAAP)261,998$ 253,130$ 259,986$ 258,104$ 261,474$<br>Tax Equivalent ("TE") adjustments1,286 1,424 1,477 1,734 1,885<br>Net interest income, TE (non-GAAP)263,284$ 254,554$ 261,463$ 259,838$ 263,359$<br>Noninterest income (GAAP)96,285$ 79,020$ 87,010$ 91,894$ 86,090$<br>Less: Gain (loss) on sale of securities- 36 64 2 -<br>Adjusted noninterest income (non-GAAP)96,285$ 78,984$ 86,946$ 91,892$ 86,090$<br>Efficiency Ratio (Non-GAAP)61%76%64%61%63%<br>Noninterest expense (GAAP)228,711$ 263,383$ 232,290$ 224,037$ 228,600$<br>Less:<br>Merger and/or branch consolid. expense10,009 32,970 17,618 6,645 10,276<br> Extinguishment of debt cost- 11,706 - - -<br>Amortization of intangible assets9,164 8,968 8,543 8,517 8,494<br>Total adjustments19,173$ 53,644$ 26,161$ 15,162$ 18,770$<br>Adjusted noninterest expense (non-GAAP)209,538$ 209,739$ 206,129$ 208,875$ 209,830$<br>Adjusted Efficiency Ratio (Non-GAAP)58%63%59%59%60%<br>Average Interest-earning Assets34,231,928$ 35,631,605$ 36,218,437$ 37,031,640$ 38,527,023$<br>Net interest income, TE (non-GAAP)263,284 254,554 261,463 259,838 263,359<br>Net Interest Margin (Non-GAAP)3.12%2.87%2.86%2.78%2.77%
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NON-GAAP RECONCILIATIONS –CURRENT & HISTORICAL: INVESTMENTS, FED FUNDS SOLD & INT. EARNING CASH(UNAUDITED)<br>Dollarsinthousands(1)DoesnotincludepurchaseaccountingadjustmentsThecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.ThecombinedhistoricalinformationexcludesACBI.42<br>2Q203Q204Q201Q212Q213Q214Q211Q22<br>SSBCSFL Combined (1)SSBCSFL Combined (1)SSBSSBSSBSSBSSBSSBSSBSSB<br>Fed Funds & Interest Earning Cash426,685$ 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$<br>Investments2,005,171 2,094,614 4,099,785 2,034,189 2,342,822 4,377,011 3,271,148 3,747,128 4,446,657 5,267,271 5,719,031 6,433,631 7,173,947 8,931,233<br>Total Assets15,921,092$ 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$<br>Fed Funds & Interest Earning Cash / Assets1.8%5.8%10.6%10.9%11.2%14.1%14.6%13.9%15.2%11.8%<br>Investments / Assets12.4%12.4%8.7%9.9%11.8%13.3%14.2%15.7%17.1%19.3%<br>Combined Business Basis (SSB & CSFL)<br>4Q19<br>1Q20
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NON-GAAP RECONCILIATIONS –TANGIBLE BOOK VALUE / SHARE & TANGIBLE COMMON EQUITY RATIO<br>Dollarsinthousands,exceptforpersharedata43<br>Tangible Book Value per Common Share1Q212Q213Q214Q211Q22Shareholders' common equity (excludes preferred stock)4,719,820$ 4,757,623$ 4,792,941$ 4,802,940$ 5,174,408$ Less: Intangible assets1,733,619 1,726,211 1,717,669 1,709,152 2,064,388 Tangible shareholders' common equity (excludes preferred stock)2,986,201$ 3,031,412$ 3,075,272$ 3,093,788$ 3,110,020$ Common shares issued and outstanding71,060,446 70,382,728 69,918,037 69,332,297 75,761,018 Tangible Book Value per Common Share (Non-GAAP)42.02$ 43.07$ 43.98$ 44.62$ 41.05$ Tangible Common Equity ("TCE") Ratio4Q211Q22Tangible common equity (non-GAAP)3,093,788$ 3,110,020$ Total assets (GAAP)41,960,032 46,201,541 Less:Intangible assets1,709,152 2,064,388 Tangible asset (non-GAAP)40,250,880$ 44,137,153$ TCE Ratio (Non-GAAP)7.7%7.0%
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