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 27, 2023

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 27, 2023, SouthState Corporation (“SouthState” or the “Company”) issued a press release announcing its financial results for the three-month period ended March 31, 2023, 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 28, 2023 at 9 a.m. (ET) to discuss the Company’s first quarter 2023 results. Investors may call in (toll free) by dialing (833) 470-1428 within the U.S. and 929-526-1599 for all other locations (passcode 991051; host: Will Matthews, CFO).


Item 7.01				Regulation FD Disclosure.

On April 27, 2023, the Company also made available the presentation (“Presentation”) prepared for use with the press release during the earnings conference call on April 28, 2023. 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 2023 Shareholder Dividend

The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.50 per share, payable on May 19, 2023 to shareholders of record as of May 12, 2023.


Item 9.01		Financial Statements and Exhibits.

	(d)	Exhibits:

	Exhibit No.	Description

	Exhibit 99.1	Press Release, dated April 27, 2023

	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. 2

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 negative economic developments resulting 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, the number and pace of interest rate increases, 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) volatility in the financial services industry (including failures or rumors of failures of other depositor institutions), along with actions taken by governmental agencies to address such turmoil, could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital (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 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 to efficiencies and the control environment due to the changing work environment; (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 deposit and loan pricing pressures 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) unexpected outflows of uninsured deposits may require us to sell investment securities at a loss; (16) the loss of value of our investment portfolio could negatively impact market perceptions of us and could lead to deposit withdrawals; (17) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (18) transaction risk arising from problems with service or product delivery; (19) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (20) 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 special FDIC assessments, the Consumer Financial Protection Bureau regulations, and the possibility of changes in accounting standards, policies, principles and practices; (21) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (22) reputation risk that adversely affects earnings or capital arising from negative public opinion including the effects of social media on market perceptions of us and banks generally; (23) 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; (24) 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; (25) greater than expected noninterest expenses; (26) excessive loan losses; (27) 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; (28) reputational risk and possible higher than estimated reduced revenue from announced changes in the Bank’s consumer overdraft programs; (29) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (30) the payment of dividends on SouthState common stock, which is subject to legal and3

regulatory limitations as well as the discretion of the board of directors of SouthState, SouthState’s performance and other factors; (31) ownership dilution risk associated with potential acquisitions in which SouthState’s stock may be issued as consideration for an acquired company; (32) 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; (33) major catastrophes such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including infectious disease outbreaks, 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; (34) terrorist activities risk that results in loss of consumer confidence and economic disruptions; and (35) 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 27, 2023

Exhibit 99.1

<br><br><br><br>
SouthState Corporation Reports First Quarter 2023 Results<br><br>Declares Quarterly Cash Dividend	For Immediate Release
		Media Contact
		Jackie Smith, 803.231.3486

WINTER HAVEN, FL – April 27, 2023 – SouthState Corporation (NASDAQ: SSB) today released its unaudited results of operations and other financial information for the three-month period ended March 31, 2023.

“SouthState’s first quarter results demonstrate the resilience of our franchise", said John C. Corbett, Chief Executive Officer. "In a turbulent macro

environment, we delivered growth in loans, deposits, liquidity, and capital ratios. Furthermore, earnings per share increased 32% from the same period last year. Looking ahead, SouthState is positioned to be opportunistic as the economic cycle unfolds."

Highlights of the first quarter of 2023 include:

Returns

●	Reported Diluted Earnings per Share (“EPS”) of $1.83; Adjusted Diluted EPS (Non-GAAP) of $1.93
●	Net Income of $139.9 million; Adjusted Net Income (Non-GAAP) of $147.2 million
---	---
●	Return on Average Common Equity of 11.0% and Return on Average Tangible Common Equity (Non-GAAP) of 18.8%; Adjusted Return on Average Tangible Common Equity^^(Non-GAAP) of 19.8%*
---	---
●	Return on Average Assets (“ROAA”) of 1.29%; Adjusted ROAA (Non-GAAP) of 1.35%*
---	---
●	Pre-Provision Net Revenue (“PPNR”) per weighted average diluted share (Non-GAAP) of $2.90, up 62% from $1.79 a year ago
---	---
●	Book Value per Share of $69.19 increased by $2.15 per share compared to the prior quarter
---	---
●	Tangible Book Value (“TBV”) per Share (Non-GAAP) of $42.40, up 6% from the prior quarter
---	---

Performance

●	Net Interest Income of $381 million; Core Net Interest Income (excluding loan accretion and deferred fees on PPP) (Non-GAAP) decreased $15 million from prior quarter
●	Net Interest Margin (“NIM”), non-tax equivalent and tax equivalent (Non-GAAP) of 3.92% and 3.93%, respectively, up 1.17% and 1.16%, respectively, from the first quarter of 2022
---	---
●	Noninterest Income of $71 million, up $8 million compared to the prior quarter; Noninterest Income represented 0.66% of average assets for the first quarter of 2023
---	---
●	Efficiency Ratio of 51%; Adjusted Efficiency Ratio (Non-GAAP) of 49%
---	---
●	$33.1 million Provision for Credit Losses (“PCL”), including provision for unfunded commitments, driven by moderate changes in economic forecasts and loan growth, in spite of net loan recoveries and only $1.0 million in total net charge-offs (including DDA charge-offs)
---	---

Balance Sheet

●	Loans increased $519 million, or 7% annualized, led by consumer real estate; ending loan to deposit ratio of 84%
●	Deposits increased $51 million, or 1% annualized as brokered CDs increased $1.2 billion, offset by a $400 million decline in public funds due to expected first quarter seasonality; excluding brokered CDs, deposits declined $1.2 billion from prior quarter
---	---
●	Total deposit cost was 0.63%, up 42 basis points from prior quarter
---	---
●	Total cash and cash equivalents increased $684 million to $2.0 billion at the end of the current quarter
---	---
●	Other borrowings increased $900 million due to FHLB advances outstanding as of current quarter-end
---	---
●	Strong capital position with Tangible Common Equity, Total Risk-Based Capital, and Tier 1 Leverage ratios of 7.5%, 13.3% and 9.1%, respectively†
---	---

Subsequent Events

●	The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.50 per share, payable on May 19, 2023 to shareholders of record as of May 12, 2023

∗ Annualized percentages

† Preliminary

Financial Performance


	Three Months Ended
(Dollars in thousands, except per share data)	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
INCOME STATEMENT	2023		2022		2022		2022		2022
Interest income
Loans, including fees (1)	$	393,366	$	359,552	$	312,856	$	272,000	$	233,617
Investment securities, trading securities, federal funds sold and securities
purchased under agreements to resell (8)		57,043		64,337		63,476		54,333		36,854
Total interest income		450,409		423,889		376,332		326,333		270,471
Interest expense
Deposits (8)		55,942		19,945		7,534		4,914		4,591
Federal funds purchased, securities sold under agreements
to repurchase, and other borrowings		13,204		7,940		6,464		5,604		4,362
Total interest expense		69,146		27,885		13,998		10,518		8,953
Net interest income (8)		381,263		396,004		362,334		315,815		261,518
Provision (recovery) for credit losses		33,091		47,142		23,876		19,286		(8,449)
Net interest income after provision (recovery) for credit losses		348,172		348,862		338,458		296,529		269,967
Noninterest income (8)		71,355		63,392		73,053		86,756		86,046
Noninterest expense
Operating expense		231,093		227,957		226,754		225,779		218,324
Merger, branch consolidation and severance related expense		9,412		1,542		13,679		5,390		10,276
Total noninterest expense		240,505		229,499		240,433		231,169		228,600
Income before provision for income taxes		179,022		182,755		171,078		152,116		127,413
Income taxes provision		39,096		39,253		38,035		32,941		27,084
Net income	$	139,926	$	143,502	$	133,043	$	119,175	$	100,329

Adjusted net income (non-GAAP) (2)
Net income (GAAP)	$	139,926	$	143,502	$	133,043	$	119,175	$	100,329
Securities gains, net of tax		(35)		—		(24)		—		—
Initial provision for credit losses - NonPCD loans and UFC from ACBI, net of tax		—		—		—		—		13,492
Merger, branch consolidation and severance related expense, net of tax		7,356		1,211		10,638		4,223		8,092
Adjusted net income (non-GAAP)	$	147,247	$	144,713	$	143,657	$	123,398	$	121,913

Basic earnings per common share	$	1.84	$	1.90	$	1.76	$	1.58	$	1.40
Diluted earnings per common share	$	1.83	$	1.88	$	1.75	$	1.57	$	1.39
Adjusted net income per common share - Basic (non-GAAP) (2)	$	1.94	$	1.91	$	1.90	$	1.64	$	1.71
Adjusted net income per common share - Diluted (non-GAAP) (2)	$	1.93	$	1.90	$	1.89	$	1.62	$	1.69
Dividends per common share	$	0.50	$	0.50	$	0.50	$	0.49	$	0.49
Basic weighted-average common shares outstanding		75,902,440		75,639,640		75,605,960		75,461,157		71,447,429
Diluted weighted-average common shares outstanding		76,388,954		76,326,777		76,182,131		76,094,198		72,110,746
Effective tax rate		21.84%		21.48%		22.23%		21.66%		21.26%

Performance and Capital Ratios


	Three Months Ended
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
	2023			2022			2022			2022			2022
PERFORMANCE RATIOS
Return on average assets (annualized) (8)		1.29	%		1.28	%		1.17	%		1.05	%		0.95	%
Adjusted return on average assets (annualized) (non-GAAP) (2) (8)		1.35	%		1.29	%		1.27	%		1.09	%		1.15	%
Return on average common equity (annualized)		10.96	%		11.41	%		10.31	%		9.36	%		8.24	%
Adjusted return on average common equity (annualized) (non-GAAP) (2)		11.53	%		11.50	%		11.13	%		9.69	%		10.01	%
Return on average tangible common equity (annualized) (non-GAAP) (3)		18.81	%		20.17	%		17.99	%		16.59	%		13.97	%
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)		19.75	%		20.33	%		19.36	%		17.15	%		16.79	%
Efficiency ratio (tax equivalent)		51.41	%		47.96	%		53.14	%		54.92	%		62.99	%
Adjusted efficiency ratio (non-GAAP) (4)		49.34	%		47.63	%		50.02	%		53.59	%		60.05	%
Dividend payout ratio (5)		27.09	%		26.40	%		28.44	%		31.03	%		33.71	%
Book value per common share	$	69.19		$	67.04		$	65.03		$	66.64		$	68.30
Tangible book value per common share (non-GAAP) (3)	$	42.40		$	40.09		$	37.97		$	39.47		$	41.05

CAPITAL RATIOS
Equity-to-assets (8)		11.7	%		11.6	%		11.1	%		11.0	%		11.2	%
Tangible equity-to-tangible assets (non-GAAP) (3) (8)		7.5	%		7.2	%		6.8	%		6.8	%		7.1	%
Tier 1 leverage (6) (8) *		9.1	%		8.7	%		8.4	%		8.0	%		8.5	%
Tier 1 common equity (6) (8) *		11.1	%		11.0	%		11.0	%		11.1	%		11.4	%
Tier 1 risk-based capital (6) (8) *		11.1	%		11.0	%		11.0	%		11.1	%		11.4	%
Total risk-based capital (6) (8) *		13.3	%		13.0	%		13.0	%		13.0	%		13.3	%

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	2023		2022		2022		2022		2022
Assets
Cash and due from banks	$	558,158	$	548,387	$	394,794	$	561,516	$	588,372
Federal funds sold and interest-earning deposits with banks (8)		1,438,504		764,176		2,529,415		4,259,490		5,604,419
Cash and cash equivalents		1,996,662		1,312,563		2,924,209		4,821,006		6,192,791

Trading securities, at fair value		16,039		31,263		51,940		88,088		74,234
Investment securities:
Securities held to maturity		2,636,673		2,683,241		2,738,178		2,806,465		2,827,769
Securities available for sale, at fair value		5,159,999		5,326,822		5,369,610		5,666,008		5,924,206
Other investments		217,991		179,717		179,755		179,815		179,258
Total investment securities		8,014,663		8,189,780		8,287,543		8,652,288		8,931,233
Loans held for sale		27,289		28,968		34,477		73,880		130,376
Loans:
Purchased credit deteriorated		1,325,400		1,429,731		1,544,562		1,707,592		1,939,033
Purchased non-credit deteriorated		5,620,290		5,943,092		6,365,175		6,908,234		7,633,824
Non-acquired		23,750,452		22,805,039		20,926,566		19,319,440		16,983,570
Less allowance for credit losses		(370,645)		(356,444)		(324,398)		(319,708)		(300,396)
Loans, net		30,325,497		29,821,418		28,511,905		27,615,558		26,256,031
Other real estate owned ("OREO")		3,473		1,023		2,160		1,431		3,290
Premises and equipment, net		517,146		520,635		531,160		562,781		568,332
Bank owned life insurance		967,750		964,708		960,052		953,970		942,922
Mortgage servicing rights		85,406		86,610		90,459		87,463		83,339
Core deposit and other intangibles		109,603		116,450		125,390		132,694		140,364
Goodwill		1,923,106		1,923,106		1,922,525		1,922,525		1,924,024
Other assets (8)		937,193		922,172		980,557		854,506		829,786
Total assets	$	44,923,827	$	43,918,696	$	44,422,377	$	45,766,190	$	46,076,722

Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing	$	12,422,583	$	13,168,656	$	13,660,244	$	14,337,018	$	14,052,332
Interest-bearing (8)		23,979,009		23,181,967		23,249,545		24,097,601		24,598,679
Total deposits		36,401,592		36,350,623		36,909,789		38,434,619		38,651,011
Federal funds purchased and securities
sold under agreements to repurchase		544,108		556,417		557,802		669,999		770,409
Other borrowings		1,292,182		392,275		392,368		392,460		405,553
Reserve for unfunded commitments		85,068		67,215		52,991		32,543		30,368
Other liabilities (8)		1,351,873		1,477,239		1,588,241		1,196,144		1,044,973
Total liabilities		39,674,823		38,843,769		39,501,191		40,725,765		40,902,314

Shareholders' equity:
Common stock - $2.50 par value; authorized 160,000,000 shares		189,649		189,261		189,191		189,103		189,403
Surplus		4,224,503		4,215,712		4,207,040		4,195,976		4,214,897
Retained earnings		1,448,636		1,347,042		1,241,413		1,146,230		1,064,064
Accumulated other comprehensive loss		(613,784)		(677,088)		(716,458)		(490,884)		(293,956)
Total shareholders' equity		5,249,004		5,074,927		4,921,186		5,040,425		5,174,408
Total liabilities and shareholders' equity	$	44,923,827	$	43,918,696	$	44,422,377	$	45,766,190	$	46,076,722

Common shares issued and outstanding		75,859,665		75,704,563		75,676,445		75,641,322		75,761,018

Net Interest Income and Margin


		Three Months Ended
		Mar. 31, 2023					Dec. 31, 2022					Mar. 31, 2022
(Dollars in thousands)		Average		Income/		Yield/	Average		Income/		Yield/	Average		Income/		Yield/
YIELD ANALYSIS		Balance		Expense		Rate	Balance		Expense		Rate	Balance		Expense		Rate
Interest-Earning Assets:
Federal funds sold and interest-earning deposits with banks (8)		$	759,239	$	8,921	4.77%	$	1,849,877	$	16,491	3.54%	$	5,715,785	$	2,859	0.20%
Investment securities			8,232,582		48,122	2.37%		8,286,894		47,846	2.29%		7,895,281		33,995	1.75%
Loans held for sale			23,123		402	7.05%		25,633		401	6.21%		110,542		869	3.19%
Total loans, excluding PPP			30,384,754		392,941	5.24%		29,480,843		359,120	4.83%		24,675,512		231,373	3.80%
Total PPP loans			9,642		23	0.97%		12,489		31	0.98%		167,541		1,375	3.33%
Total loans held for investment			30,394,396		392,964	5.24%		29,493,332		359,151	4.83%		24,843,053		232,748	3.80%
Total interest-earning assets (8)			39,409,340		450,409	4.64%		39,655,736		423,889	4.24%		38,564,661		270,471	2.84%
Noninterest-earning assets (8)			4,695,138					4,774,158					4,342,607
Total Assets		$	44,104,478				$	44,429,894				$	42,907,268

Interest-Bearing Liabilities ("IBL"):
Transaction and money market accounts (8)		$	16,874,909	$	40,516	0.97%	$	17,044,865	$	16,901	0.39%	$	17,471,805	$	2,180	0.05%
Savings deposits			3,298,221		1,756	0.22%		3,536,330		1,021	0.11%		3,408,129		130	0.02%
Certificates and other time deposits			3,114,354		13,670	1.78%		2,444,361		2,023	0.33%		2,848,829		2,281	0.32%
Federal funds purchased			193,259		2,187	4.59%		186,232		1,694	3.61%		354,899		111	0.13%
Repurchase agreements			373,563		666	0.72%		363,336		253	0.28%		438,258		158	0.15%
Other borrowings			785,571		10,351	5.34%		435,806		5,993	5.46%		354,133		4,093	4.69%
Total interest-bearing liabilities (8)			24,639,877		69,146	1.14%		24,010,930		27,885	0.46%		24,876,053		8,953	0.15%
Noninterest-bearing liabilities ("Non-IBL") (8)			14,287,553					15,427,380					13,094,050
Shareholders' equity			5,177,048					4,991,584					4,937,165
Total Non-IBL and shareholders' equity			19,464,601					20,418,964					18,031,215
Total Liabilities and Shareholders' Equity		$	44,104,478				$	44,429,894				$	42,907,268
Net Interest Income and Margin (Non-Tax Equivalent) (8)				$	381,263	3.92%			$	396,004	3.96%			$	261,518	2.75%
Net Interest Margin (Tax Equivalent) (non-GAAP) (8)						3.93%					3.99%					2.77%
Total Deposit Cost (without Debt and Other Borrowings)						0.63%					0.21%					0.05%
Overall Cost of Funds (including Demand Deposits)						0.75%					0.29%					0.10%

Total Accretion on Acquired Loans (1)				$	7,398				$	7,350				$	6,741
Total Deferred Fees on PPP Loans				$	—				$	—				$	983
Tax Equivalent ("TE") Adjustment				$	1,020				$	2,397				$	1,885
(1)	The remaining loan discount on acquired loans to be accreted into loan interest income totals $64.7 million as of March 31, 2023.
---	---

Noninterest Income and Expense


	Three Months Ended
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
(Dollars in thousands)	2023		2022		2022		2022		2022
Noninterest Income:
Fees on deposit accounts	$	29,859	$	33,612	$	30,327	$	32,862	$	28,009
Mortgage banking income (loss)		4,332		(545)		2,262		5,480		10,594
Trust and investment services income		9,937		9,867		9,603		9,831		9,718
Securities gains, net		45		—		30		—		—
Correspondent banking and capital market income (8)		21,956		16,760		20,552		27,604		27,994
Expense on centrally-cleared variation margin (8)		(8,362)		(8,451)		(4,125)		(1,536)		(44)
Total Correspondent banking and capital market income (8)		13,594		8,309		16,427		26,068		27,950
Bank owned life insurance income		6,813		6,723		6,082		6,246		5,260
Other		6,775		5,426		8,322		6,269		4,515
Total Noninterest Income (8)	$	71,355	$	63,392	$	73,053	$	86,756	$	86,046

Noninterest Expense:
Salaries and employee benefits	$	144,060	$	140,440	$	139,554	$	137,037	$	137,673
Occupancy expense		21,533		22,412		22,490		22,759		21,840
Information services expense		19,925		19,847		20,714		19,947		19,193
OREO and loan related expense (income)		169		78		532		(3)		(238)
Business development and staff related		5,957		5,851		5,090		4,916		4,276
Amortization of intangibles		7,299		8,027		7,837		8,847		8,494
Professional fees		3,702		3,756		3,495		4,331		3,749
Supplies and printing expense		2,640		2,411		2,621		2,400		2,189
FDIC assessment and other regulatory charges		6,294		6,589		6,300		5,332		4,812
Advertising and marketing		2,118		2,669		2,170		2,286		1,763
Other operating expenses		17,396		15,877		15,951		17,927		14,573
Merger, branch consolidation and severance related expense *		9,412		1,542		13,679		5,390		10,276
Total Noninterest Expense	$	240,505	$	229,499	$	240,433	$	231,169	$	228,600

* During the current quarter, the Company recorded $8.1 million in severance payments, which are included in the Merger, branch consolidation and severance related expense in the table above.

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	2023		2022		2022		2022		2022
Construction and land development * †	$	2,749,290	$	2,860,360	$	2,550,552	$	2,527,062	$	2,316,313
Investor commercial real estate*		8,957,507		8,769,201		8,641,316		8,393,630		8,158,457
Commercial owner occupied real estate		5,522,514		5,460,193		5,426,216		5,421,725		5,346,583
Commercial and industrial		5,321,306		5,313,483		4,977,737		4,807,528		4,566,641
Consumer real estate *		6,860,831		6,475,210		5,977,120		5,505,531		4,988,736
Consumer/other		1,284,694		1,299,415		1,263,362		1,279,790		1,179,697
Total loans	$	30,696,142	$	30,177,862	$	28,836,303	$	27,935,266	$	26,556,427

* 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 $893.7 million, $904.1 million, $881.3 million, $795.7 million, and $733.7 million for the quarters ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.


	Ending Balance
(Dollars in thousands)	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
DEPOSITS	2023		2022		2022		2022		2022
Noninterest-bearing checking	$	12,422,583	$	13,168,656	$	13,660,244	$	14,337,018	$	14,052,332
Interest-bearing checking		8,316,023		8,955,519		8,741,447		8,953,332		9,275,208
Savings		3,156,214		3,464,351		3,602,560		3,616,819		3,479,743
Money market (8)		8,388,275		8,342,111		8,369,826		8,823,025		9,015,186
Time deposits		4,118,497		2,419,986		2,535,712		2,704,425		2,828,542
Total Deposits (8)	$	36,401,592	$	36,350,623	$	36,909,789	$	38,434,619	$	38,651,011

Core Deposits (excludes Time Deposits) (8)	$	32,283,095	$	33,930,637	$	34,374,077	$	35,730,194	$	35,822,469

Asset Quality


	Ending Balance
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
(Dollars in thousands)	2023		2022		2022		2022		2022
NONPERFORMING ASSETS:
Non-acquired
Non-acquired nonaccrual loans and restructured loans on nonaccrual	$	68,176	$	44,671	$	34,374	$	20,716	$	19,582
Accruing loans past due 90 days or more		2,667		2,358		2,358		1,371		22,818
Non-acquired OREO and other nonperforming assets		186		245		114		93		464
Total non-acquired nonperforming assets		71,029		47,274		36,846		22,180		42,864
Acquired
Acquired nonaccrual loans and restructured loans on nonaccrual		52,795		59,554		61,866		63,526		59,267
Accruing loans past due 90 days or more		983		1,992		1,430		4,418		12,768
Acquired OREO and other nonperforming assets		3,446		922		2,234		1,577		3,118
Total acquired nonperforming assets		57,224		62,468		65,530		69,521		75,153
Total nonperforming assets	$	128,253	$	109,742	$	102,376	$	91,701	$	118,017


	Three Months Ended
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2023		2022		2022		2022		2022
ASSET QUALITY RATIOS:
Allowance for credit losses as a percentage of loans		1.21%		1.18%		1.12%		1.14%		1.13%
Allowance for credit losses, including reserve for unfunded commitments, as a percentage of loans		1.48%		1.40%		1.31%		1.26%		1.25%
Allowance for credit losses as a percentage of nonperforming loans		297.42%		328.29%		324.30%		355.11%		262.50%
Net charge-offs (recoveries) as a percentage of average loans (annualized)		0.01%		0.01%		(0.02)%		0.03%		0.04%
Total nonperforming assets as a percentage of total assets		0.29%		0.25%		0.23%		0.20%		0.26%
Nonperforming loans as a percentage of period end loans		0.41%		0.36%		0.35%		0.32%		0.43%

Current Expected Credit Losses (“CECL”)

Below is a table showing the roll forward of the ACL and UFC for the first quarter of 2023:


	Allowance for Credit Losses ("ACL and UFC")
	NonPCD ACL		PCD ACL		Total ACL		UFC
Ending balance 12/31/2022	$	309,606	$	46,838	$	356,444	$	67,215
Charge offs		(3,858)		—		(3,858)		—
Acquired charge offs		(658)		(111)		(769)		—
Recoveries		1,555		—		1,555		—
Acquired recoveries		772		1,262		2,034		—
Provision (recovery) for credit losses		20,498		(5,259)		15,239		17,853
Ending balance 3/31/2023	$	327,915	$	42,730	$	370,645	$	85,068

Period end loans (includes PPP Loans)	$	29,370,742	$	1,325,400	$	30,696,142		N/A
Allowance for Credit Losses to Loans (includes PPP Loans)		1.12%		3.22%		1.21%		N/A
Period end loans (excludes PPP Loans)	$	29,361,548	$	1,325,400	$	30,686,948		N/A
Allowance for Credit Losses to Loans (excludes PPP Loans)		1.12%		3.22%		1.21%		N/A
Unfunded commitments (off balance sheet) *							$	10,089,388
Reserve to unfunded commitments (off balance sheet)								0.84%

* 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 9:00 a.m. Eastern Time on April 28, 2023. Callers wishing to participate may call toll-free by dialing 833-470-1428. The number for international participants is (929) 526-1599. The conference ID number is 991051. 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 28, 2023 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. Although other companies may use calculation methods that differ from those used by SouthState for non-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 and shares in thousands, except per share data)	Three Months Ended
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP)	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022
Net income (GAAP)	$	139,926		$	143,502		$	133,043		$	119,175		$	100,329
Provision (recovery) for credit losses		33,091			47,142			23,876			19,286			(8,449)
Tax provision		39,096			39,253			38,035			32,941			27,084
Merger, branch consolidation and severance related expense		9,412			1,542			13,679			5,390			10,276
Securities gains		(45)			—			(30)			—			—
Pre-provision net revenue (PPNR) (Non-GAAP)	$	221,480		$	231,439		$	208,603		$	176,792		$	129,240

Average asset balance (GAAP)	$	44,104,478		$	44,429,894		$	44,985,713		$	45,576,742		$	42,907,268
PPNR ROAA		2.04	%		2.07	%		1.84	%		1.56	%		1.22	%

Diluted weighted-average common shares outstanding		76,389			76,327			76,182			76,094			72,111
PPNR per weighted-average common shares outstanding	$	2.90		$	3.03		$	2.74		$	2.32		$	1.79


(Dollars in thousands)	Three Months Ended
CORE NET INTEREST INCOME (NON-GAAP)	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022
Net interest income (GAAP) (8)	$	381,263		$	396,004		$	362,334		$	315,815		$	261,518
Less:
Total accretion on acquired loans		7,398			7,350			9,550			12,770			6,741
Total deferred fees on PPP loans		—			—			—			8			983
Core net interest income (Non-GAAP)	$	373,865		$	388,654		$	352,784		$	303,037		$	253,794

NET INTEREST MARGIN ("NIM"), TAX EQUIVALENT (NON-GAAP)
Net interest income (GAAP) (8)	$	381,263		$	396,004		$	362,334		$	315,815		$	261,518
Total average interest-earning assets (8)		39,409,340			39,655,736			40,451,174			40,899,365			38,564,661
NIM, non-tax equivalent (8)		3.92	%		3.96	%		3.55	%		3.10	%		2.75	%

Tax equivalent adjustment (included in NIM, tax equivalent)		1,020			2,397			2,345			2,249			1,885
Net interest income, tax equivalent (Non-GAAP) (8)	$	382,283		$	398,401		$	364,679		$	318,064		$	263,403
NIM, tax equivalent (Non-GAAP) (8)		3.93	%		3.99	%		3.58	%		3.12	%		2.77	%


	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	2023			2022			2022			2022			2022
Adjusted Net Income (non-GAAP) (2)
Net income (GAAP)	$	139,926		$	143,502		$	133,043		$	119,175		$	100,329
Securities gains, net of tax		(35)			—			(24)			—			—
PCL - NonPCD loans and UFC, net of tax		—			—			—			—			13,492
Merger, branch consolidation and severance related expense, net of tax		7,356			1,211			10,638			4,223			8,092
Adjusted net income (non-GAAP)	$	147,247		$	144,713		$	143,657		$	123,398		$	121,913

Adjusted Net Income per Common Share - Basic (2)
Earnings per common share - Basic (GAAP)	$	1.84		$	1.90		$	1.76		$	1.58		$	1.40
Effect to adjust for securities gains		(0.00)			—			(0.00)			—			—
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—			—			—			—			0.19
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.10			0.01			0.14			0.06			0.12
Adjusted net income per common share - Basic (non-GAAP)	$	1.94		$	1.91		$	1.90		$	1.64		$	1.71

Adjusted Net Income per Common Share - Diluted (2)
Earnings per common share - Diluted (GAAP)	$	1.83		$	1.88		$	1.75		$	1.57		$	1.39
Effect to adjust for securities gains		(0.00)			—			(0.00)			—			—
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—			—			—			—			0.19
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.10			0.02			0.14			0.05			0.11
Adjusted net income per common share - Diluted (non-GAAP)	$	1.93		$	1.90		$	1.89		$	1.62		$	1.69

Adjusted Return on Average Assets (2)
Return on average assets (GAAP) (8)		1.29	%		1.28	%		1.17	%		1.05	%		0.95	%
Effect to adjust for securities gains		(0.00)	%		—	%		(0.00)	%		—	%		—	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—	%		—	%		—	%		—	%		0.13	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.06	%		0.01	%		0.10	%		0.04	%		0.07	%
Adjusted return on average assets (non-GAAP) (8)		1.35	%		1.29	%		1.27	%		1.09	%		1.15	%

Adjusted Return on Average Common Equity (2)
Return on average common equity (GAAP)		10.96	%		11.41	%		10.31	%		9.36	%		8.24	%
Effect to adjust for securities gains		(0.00)	%		—	%		(0.00)	%		—	%		—	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—	%		—	%		—	%		—	%		1.11	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.57	%		0.09	%		0.82	%		0.33	%		0.66	%
Adjusted return on average common equity (non-GAAP)		11.53	%		11.50	%		11.13	%		9.69	%		10.01	%

Return on Average Common Tangible Equity (3)
Return on average common equity (GAAP)		10.96	%		11.41	%		10.31	%		9.36	%		8.24	%
Effect to adjust for intangible assets		7.85	%		8.76	%		7.68	%		7.23	%		5.73	%
Return on average tangible equity (non-GAAP)		18.81	%		20.17	%		17.99	%		16.59	%		13.97	%

Adjusted Return on Average Common Tangible Equity (2) (3)
Return on average common equity (GAAP)		10.96	%		11.41	%		10.31	%		9.36	%		8.24	%
Effect to adjust for securities gains		(0.00)	%		—	%		(0.00)	%		—	%		—	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—	%		—	%		—	%		—	%		1.11	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.58	%		0.10	%		0.82	%		0.33	%		0.66	%
Effect to adjust for intangible assets		8.21	%		8.82	%		8.23	%		7.46	%		6.78	%
Adjusted return on average common tangible equity (non-GAAP)		19.75	%		20.33	%		19.36	%		17.15	%		16.79	%

Adjusted Efficiency Ratio (4)
Efficiency ratio		51.41	%		47.96	%		53.14	%		54.92	%		62.99	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		(2.07)	%		(0.33)	%		(3.12)	%		(1.33)	%		(2.94)	%
Adjusted efficiency ratio		49.34	%		47.63	%		50.02	%		53.59	%		60.05	%

Tangible Book Value Per Common Share (3)
Book value per common share (GAAP)	$	69.19		$	67.04		$	65.03		$	66.64		$	68.30
Effect to adjust for intangible assets		(26.79)			(26.95)			(27.06)			(27.17)			(27.25)
Tangible book value per common share (non-GAAP)	$	42.40		$	40.09		$	37.97		$	39.47		$	41.05

Tangible Equity-to-Tangible Assets (3)
Equity-to-assets (GAAP) (8)		11.68	%		11.56	%		11.08	%		11.01	%		11.23	%
Effect to adjust for intangible assets		(4.18)	%		(4.31)	%		(4.30)	%		(4.18)	%		(4.16)	%
Tangible equity-to-tangible assets (non-GAAP) (8)		7.50	%		7.25	%		6.78	%		6.83	%		7.07	%

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 $7.4 million, $7.3 million, $9.6 million, $12.8 million, and $6.7 million during the quarters ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.
(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, branch consolidation and severance 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, branch consolidation and severance related expense of $9.4 million, $1.5 million, $13.7 million, $5.4 million, and $10.3 million, for the quarters ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively; (b) net securities gains of $45,000 and $30,000 for the quarters ended March 31, 2023 and September 30, 2022, 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.
---	---
(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.
---	---
(4)	Adjusted efficiency ratio is calculated by taking the noninterest expense excluding merger, branch consolidation and severance related expense and amortization of intangible assets, divided by net interest income and noninterest income excluding securities gains (losses). The pre-tax amortization expenses of intangible assets were $7.3 million, $8.0 million, $7.8 million, $8.8 million, and $8.5 million for the quarters ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.
---	---
(5)	The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period.
---	---
(6)	March 31, 2023 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.
---	---
(7)	Loan data excludes mortgage loans held for sale.
---	---
(8)	During the fourth quarter of 2022, the Company determined the variation margin payments for its interest rate swaps centrally cleared through London Clearing House ("LCH") and Chicago Mercantile Exchange ("CME") met the legal characteristics of daily settlements of the derivatives rather than collateral. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting and financial reporting purposes. Depending on the net position, the fair value of the single unit of account is reported in other assets or other liabilities on the consolidated balance sheets, as opposed to interest-earning deposits or interest-bearing deposits. In addition, the expense or income attributable to the variation margin payments for the centrally cleared swaps is reported in noninterest income, specifically within correspondent and capital markets income, as opposed to interest income or interest expense. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. The table below discloses the net change in all the balance sheet and income statement line items, as well as performance metrics, impacted by the correction from collateralize-to-market to settle-to-market accounting treatment for prior periods. There was no impact to net income or equity as previously reported.
---	---

---	---	---	---	---	---	---	---	---	---	---	---	---
		Three Months Ended
(Dollars in thousands)		Sep. 30,				Jun. 30,				Mar. 31,
INCOME STATEMENT		2022				2022				2022
Interest income:
Effect to interest income on federal funds sold and interest-earning
deposits with banks		$	1,522			$	674			$	7
Interest expense:
Effect to interest expense on money market deposits			(2,603)				(862)				(37)
Net interest income:
Net effect to net interest income		$	4,125			$	1,536			$	44
Noninterest Income:
Effect to correspondent banking and capital market income		$	(4,125)			$	(1,536)			$	(44)

BALANCE SHEET
Assets:
Effect to federal funds sold and interest-earning deposits with banks		$	114,514			$	98,907			$	160,185
Effect to other assets			(870,746)				(540,139)				(285,004)
Net effect to total assets		$	(756,232)			$	(441,232)			$	(124,819)

Liabilities:
Effect to money market deposits		$	(756,232)			$	(441,232)			$	(124,819)
Net effect to total liabilities		$	(756,232)			$	(441,232)			$	(124,819)

AVERAGE BALANCES
Interest-earning assets:
Effect to federal funds sold and interest-earning deposits with banks		$	210,108			$	211,970			$	37,638
Noninterest-earning assets:
Effect to noninterest-earning assets			(569,329)				(483,017)				(76,702)
Net effect to total average assets		$	(359,221)			$	(271,047)			$	(39,064)
Interest-bearing liabilities:
Effect to transaction and money market accounts		$	(359,221)			$	(271,047)			$	(1,387)
Noninterest-bearing liabilities:
Effect to Non-IBL			—				—				(37,677)
Net effect to total average liabilities		$	(359,221)			$	(271,047)			$	(39,064)


	Three Months Ended
	Sep. 30,			Jun. 30,			Mar. 31,
YIELD ANALYSIS	2022			2022			2022
Interest-earning assets:
Effect to federal funds sold and interest-earning deposits with banks		0.05	%		0.03	%		—	%
Effect to total interest-earning assets		(0.01)	%		(0.01)	%		(0.01)	%
Interest-bearing liabilities:
Effect to transaction and money market accounts		(0.06)	%		(0.01)	%		0.00	%
Effect to total interest-bearing liabilities		(0.04)	%		(0.01)	%		0.00	%

Net effect to NIM		0.02	%		0.00	%		—	%
Net effect to NIM, TE (non-GAAP)		0.03	%		—	%		—	%

PERFORMANCE RATIOS
Effect to return on average assets (annualized)		0.01	%		0.01	%		—	%
Effect to adjusted return on average assets (annualized) (non-GAAP) (2)		0.01	%		0.01	%		—	%

Effect to equity-to-assets		0.2	%		0.1	%		—	%
Effect to tangible equity-to-tangible assets (non-GAAP) (3)		0.1	%		—	%		0.1	%
Effect to Tier 1 leverage		0.1	%		0.1	%		—	%
Effect to Tier 1 common equity		—	%		—	%		—	%
Effect to Tier 1 risk-based capital		—	%		—	%		—	%
Effect to Total risk-based capital		0.1	%		—	%		—	%

Cautionary Statement Regarding Forward Looking Statements

results in loss of consumer confidence and economic disruptions; and (35) 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 2023<br>April 28, 2023<br>Exhibit 99.2
DISCLAIMER<br>2<br>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<br>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<br>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,”<br>“possible” and variations of such words and similar expressions are intended to identify such forward-looking statements.<br>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<br>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<br>than expected noninterest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential negative economic developments resulting 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, the number and pace of interest rate increases, and their impact on the Bank’s earnings, including from the correspondent and mortgage divisions,<br>housing demand, the market value of the bank’s loan and securities portfolios, and the market value of SouthState’s equity; (3) volatility in the financial services industry (including failures or rumors of failures of other depositor institutions), along with<br>actions taken by governmental agencies to address such turmoil, could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital (4) risks related to the merger and integration of SouthState<br>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<br>operations into SouthState’s operations 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,<br>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<br>the Company, including to efficiencies and the control environment due to the changing work environment; (6) the impact of increasing digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on<br>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<br>controls and procedures; (8) potential deterioration in real estate values; (9) the impact of competition with other financial institutions, including deposit and loan pricing pressures and the resulting impact, including as a result of compression to net<br>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<br>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<br>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<br>investment securities SouthState desires to acquire are not available on terms acceptable to SouthState; (15) unexpected outflows of uninsured deposits may require us to sell investment securities at a loss; (16) the loss of value of our investment<br>portfolio could negatively impact market perceptions of us and could lead to deposit withdrawals; (17) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (18) transaction risk<br>arising from problems with service or product delivery; (19) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (20) regulatory<br>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<br>regulatory-mandated minimums and including the impact of special FDIC assessments, the Consumer Financial Protection Bureau regulations, and the possibility of changes in accounting standards, policies, principles and practices; (21) strategic risk<br>resulting from adverse business decisions or improper implementation of business decisions; (22) reputation risk that adversely affects earnings or capital arising from negative public opinion including the effects of social media on market perceptions<br>of us and banks generally; (23) 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<br>may subject the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (24) reputational and operational risks associated with environment, social and governance (ESG) matters, including<br>the impact of recently issued proposed regulatory guidance and regulation relating to climate change; (25) greater than expected noninterest expenses; (26) excessive loan losses; (27) potential deposit attrition, higher than expected costs, customer<br>loss and business disruption associated with the Atlantic Capital integration, and potential difficulties in maintaining relationships with key personnel; (28) reputational risk and possible higher than estimated reduced revenue from announced changes<br>in the Bank’s consumer overdraft programs; (29) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (30) the payment of dividends on SouthState<br>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; (31) ownership dilution risk associated with potential acquisitions in which<br>SouthState’s stock may be issued as consideration for an acquired company; (32) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future<br>acquisitions, whether involving stock or cash consideration; (33) major catastrophes such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including infectious disease outbreaks, and the related disruption to local,<br>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; (34) terrorist activities risk that results in loss of consumer confidence and<br>economic disruptions; and (35) 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.<br>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<br>statements.<br>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<br>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<br>statements.
---
$36<br>Billion in deposits<br>$31<br>Billion in loans<br>$45<br>Billion in assets<br>$5.0<br>Billion market cap<br>(1) Financial metrics as of March 31, 2023; market cap as of April 26, 2023<br>SouthState Corporation<br>Overview of Franchise (1)<br>3<br>(251)<br>#1 in Florida<br>#3 in South Carolina<br>Top 30<br>Forbes 100<br>Best Banks in<br>America 2022<br>16 Greenwich Excellence and Best Brand<br>awards from Coalition Greenwich<br>Ranked #30<br>by S&P Global
---
Local Market Leadership<br>Our business model supports the unique character of the communities we serve and<br>encourages decision making by the banker that is closest to the customer.<br>Long-Term Horizon<br>We think and act like owners and measure success over entire economic cycles. We<br>prioritize soundness before short-term profitability and growth.<br>Remarkable Experiences<br>We 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.<br>Meaningful and Lasting Relationships<br>We communicate with candor and transparency. The relationship is more valuable<br>than the transaction.<br>Greater Purpose<br>We enable our team members to pursue their ultimate purpose in life—their<br>personal faith, their family, their service to community.<br>The WHAT The HOW<br>Guiding Principles Core Values<br>Leadership<br>The WHY To invest in the entrepreneurial spirit, pursue excellence and inspire a greater purpose.<br>4
---
17.8%<br>13.7%12.8% 11.9%<br>8.9% 8.3%<br>6.0%<br>FL SC GA NC VA U.S. AL<br>Actual Population Growth<br>2010-2023<br>$10.3B<br>$11.7B<br>$1.7B<br>$1.7B<br>$7.0B<br>$10.7B<br>$0.7B<br>$0.5B<br>$6.3B<br>$6.2B<br>$2.7B<br>$1.9B<br>Loans<br>Deposits<br>POSITIONED FOR THE FUTURE IN THE BEST GROWTH MARKETS IN AMERICA<br>5<br>$286<br>$305<br>$666<br>$752<br>$778<br>$1,437<br>AL<br>SC<br>VA<br>NC<br>GA<br>FL<br>GDP by State<br>($ in billions)<br>5.0%<br>4.3%<br>3.7% 3.7%<br>2.6% 2.1% 1.9%<br>FL SC GA NC VA U.S. AL<br>Projected Population Growth<br>2023-2028<br>$3.2<br>$3.5<br>$4.0<br>$4.2<br>$4.3<br>$18.3<br>$25.0<br>UK<br>India<br>Germany<br>SSB Footprint<br>Japan<br>China<br>US<br>GDP<br>($ in trillions)<br>The combined GDP of<br>SouthState’s 6 state branch<br>footprint would represent the<br>world’s fourth largest economy. Population<br>increase<br>(in millions) 3.3 0.6 1.2 1.1 0.7 25.8 0.3<br>1.0 0.2 0.4 0.4 0.2 7.2 0.1<br>For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>Population<br>increase<br>(in millions)
---
Source: U.S. Census Bureau<br>PANDEMIC ACCELERATES POPULATION MIGRATION TO THE SOUTH<br>Net Domestic Migration<br>in SouthState Footprint<br>Florida 622,476<br>North Carolina 211,867<br>South Carolina 165,948<br>Georgia 128,089<br>Alabama 65,355<br>Virginia -29,775<br>TOTAL 1,163,960<br>6
---
INVESTMENT THESIS<br>7<br>• High growth markets<br>• Granular, low-cost core deposit base<br>• Diversified revenue streams<br>• Strong credit quality and disciplined underwriting<br>• Energetic and experienced management team with entrepreneurial ownership<br>culture<br>• True alternative to the largest banks with capital markets platform and upgraded<br>technology solutions
---
Quarterly Results
---
HIGHLIGHTS	LINKED QUARTER<br>Dollars in millions, except per share data<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 9<br>4Q22 1Q23<br>GAAP<br>Net Income $ 143.5 $ 139.9<br>EPS (Diluted) $ 1.88 $ 1.83<br>Return on Average Assets 1.28 % 1.29 %<br>Non-GAAP(1)<br>Return on Average Tangible Common Equity 20.2 % 18.8 %<br>Non-GAAP, Adjusted(1)<br>Net Income $ 144.7 $ 147.2<br>EPS (Diluted) $ 1.90 $ 1.93<br>Return on Average Assets 1.29 % 1.35 %<br>Return on Average Tangible Common Equity 20.3 % 19.8 %
---
QUARTERLY HIGHLIGHTS	1Q 2023<br>(1)~(3) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 10<br>• Reported Diluted Earnings per Share (“EPS”) of $1.83; adjusted Diluted EPS (non-GAAP)(1) of $1.93<br>• Pre-Provision Net Revenue (“PPNR”)(non-GAAP)(2) of $221.5 million, or 2.04% PPNR ROAA (non-GAAP)(2)<br>• PPNR per diluted share (non-GAAP)(2) of $2.90, up 62% from one year ago<br>• Loans increased $519 million, or 7% annualized<br>• Deposits increased $51 million, or 1% annualized, as brokered CDs increased $1.2 billion, offset by a $400<br>million decline in public funds due to expected first quarter seasonality; excluding brokered CDs, deposits<br>declined $1.2 billion from prior quarter<br>• Total deposit cost was 0.63%, up 42 basis points from prior quarter<br>• Net interest margin (TE) (non-GAAP)(3) of 3.93%, up 1.16% from the first quarter of 2022<br>• Efficiency ratio of 51%; adjusted efficiency ratio (non-GAAP)(1) of 49%<br>• Net charge-offs of $1.0 million, or 0.01% annualized; net loan recoveries excluding DDA charge-offs; Provision<br>for Credit Losses (“PCL”), including provision for unfunded commitments, of $33.1 million
---
PPNR PER DILUTED SHARE (1)<br>$1.79<br>$2.32<br>$2.74<br>$3.03<br>$2.90<br> $1.50<br> $2.00<br> $2.50<br> $3.00<br> $3.50<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>(1) For end note descriptions, Earnings Presentation End Notes starting on slide 46. 11<br>62% increase 1Q22-1Q23
---
NET INTEREST MARGIN (1)<br>Dollars in millions<br>(1)~(3) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 12<br>(2) (2) (3)<br>$253.8<br>$303.0 $352.8<br>$388.6 $373.9<br>$7.7<br>$12.8<br>$9.5<br>$7.4<br>$7.4<br>$261.5<br>$315.8<br>$362.3<br>$396.0<br>$381.3<br>2.77%<br>3.12%<br>3.58%<br>3.99%<br>3.93%<br>2.4%<br>2.8%<br>3.2%<br>3.6%<br>4.0%<br>4.4%<br> $100<br> $150<br> $200<br> $250<br> $300<br> $350<br> $400<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Net Interest Income excld. Accretion Accretion Net Interest Income Net Interest Margin<br>116 bps improvement in Net Interest Margin(3)(1Q22-1Q23)
---
LOAN PRODUCTION VS LOAN GROWTH<br>$1,256<br>$1,791 $1,933 $2,079<br>$1,699<br>$1,470 $1,535<br>$1,879 $1,834<br>$2,355<br>$2,636<br>$3,129<br>$2,582<br>$3,863<br>$3,372 $3,305<br>$2,181<br>$180 $82 $267 $153 $180<br>$(372) $(277) $(155) $(185)<br>$169 $573 $396 $381<br>$1,451<br>$933<br>$1,347<br>$519<br>-$500<br>$0<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>$3,500<br>$4,000<br>1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Loan Production Loan Portfolio Growth<br>Dollars in millions<br>(1)~(4) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 13<br>(2)<br>(4) (4) (4) (4) (4) (4)<br>(3) (3)<br>(1)<br>(1)<br>(1)<br>(1)
---
Interest Rate Sensitivity
---
35%<br>34%<br>31%<br>Checking Accounts<br>Composition<br>Commercial<br>Small Business<br>Retail<br>Noninterest-bearing<br>Checking<br>$12.4B<br>Interest-bearing<br>Checking<br>$8.3B<br>Savings<br>$3.2B<br>Money<br>Market<br>$8.4B<br>Time<br>Deposits<br>$4.1B<br>Data as of March 31, 2023<br>Dollars in billions except for average checking balances<br>† & (1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>57%<br>43%<br>32%<br>47%<br>11% 10%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>SSB Peer Average (1)<br>Deposit Mix vs. Peers<br>Checking Accounts MM & Savings Time Deposits<br>PREMIUM CORE † DEPOSIT FRANCHISE<br>15<br>Total Deposits<br>$36.4 Billion<br>Deposits by Type<br>Checking Type Avg. Checking Balance<br>Commercial $300,600<br>Small Business $48,700<br>Retail $10,800<br>Total Cost of Deposits 1Q23<br>SSB 63 bps<br>Peer Average(1) 129 bps
---
REMAIN WELL - POSITIONED DURING CURRENT CYCLE –<br>PREVIOUS AND CURRENT RISING INTEREST RATE CYCLE<br>Historic deposit beta excludes legacy ACBI. 16<br>0.11%<br>0.75%<br>2.17%<br>3.64%<br>4.50%<br>0.05% 0.05% 0.08%<br>0.21%<br>0.63%<br>0.0%<br>1.0%<br>2.0%<br>3.0%<br>4.0%<br>5.0%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>0.16%<br>0.37% 0.37% 0.40% 0.45%<br>0.70%<br>0.95%<br>1.16% 1.20%<br>1.45%<br>1.74%<br>1.92%<br>2.22%<br>2.40% 2.40%<br>0.12% 0.12% 0.11% 0.11% 0.12% 0.13% 0.15% 0.17% 0.19% 0.25% 0.34%<br>0.44% 0.52% 0.56% 0.64%<br>0.0%<br>1.0%<br>2.0%<br>3.0%<br>4.0%<br>5.0%<br>4Q15<br>1Q16<br>2Q16<br>3Q16<br>4Q16<br>1Q17<br>2Q17<br>3Q17<br>4Q17<br>1Q18<br>2Q18<br>3Q18<br>4Q18<br>1Q19<br>2Q19<br>24% deposit<br>beta in<br>previous<br>cycle<br>Average Fed Funds Rate Cost of Deposits<br>13% deposit<br>beta in<br>current cycle<br>to date
---
INTEREST RATE RISK PROFILE<br>(2.9)%<br>(1.3)%<br>—%<br>1.1%<br>2.1%<br> (4.0)%<br> (3.0)%<br> (2.0)%<br> (1.0)%<br> 0.0%<br> 1.0%<br> 2.0%<br> 3.0%<br>Down 100 bps Down 50 bps Base Up 50 bps Up 100 bps<br>Percentage Change in Net Interest Income<br>Instantaneous Shock/Static Balance Sheet (1)<br>17<br>51% 51%<br>29%<br>41%<br>20%<br>8%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>60%<br> Variable Equals 1 Month or Less Variable Equals 12 Months or Less<br>Loan Repricing Frequency (excluding PPP)<br>Fixed Variable Adjustable<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 17
---
Balance Sheet
---
LOAN AND DEPOSIT TRENDS<br>$26.4 $27.9 $28.8 $30.2 $30.7<br> $24.0B<br> $25.0B<br> $26.0B<br> $27.0B<br> $28.0B<br> $29.0B<br> $30.0B<br> $31.0B<br> $32.0B<br> $-<br> $6<br> $12<br> $18<br> $24<br> $30<br> $36<br> $42<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in billions<br>Loans (1)<br>Dollars in billions<br>Amounts may not total due to rounding.<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 19<br>$14.1 $14.3 $13.7 $13.2 $12.4<br>$9.3 $9.0 $8.7 $9.0 $8.3<br>$12.5 $12.4 $12.0 $11.8 $11.5<br>$2.8 $2.7 $2.5 $2.4 $4.1<br>$38.7B $38.4B $36.9B $36.4B $36.4B<br> $-<br> $50,000,000.0B<br> $100,000,000.0B<br> $150,000,000.0B<br> $200,000,000.0B<br> $250,000,000.0B<br> $300,000,000.0B<br> $350,000,000.0B<br> $-<br> $6<br> $12<br> $18<br> $24<br> $30<br> $36<br> $42<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in billions<br>Deposits<br>Noninterest-bearing Checking Interest-bearing Checking<br>MMA & Savings Time Deposits
---
Investor CRE (2)<br>29%<br>Consumer<br>RE<br>22% Owner-Occupied<br>CRE<br>18%<br>C&I<br>18%<br>CDL (1)<br>9%<br>Cons / Other<br>4%<br>TOTAL LOAN PORTFOLIO<br>20<br>Data as of March 31, 2023<br>Loan portfolio balances, average balances or percentage exclude loans held for sale and PPP loans<br>(1)~(3) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>Loan Type<br>No. of<br>Loans Balance<br>Avg. Loan<br>Balance<br>Investor CRE 8,703 $ 9.0B $ 1,029,400<br>Consumer RE 42,010 6.9B 163,300<br>Owner-Occupied CRE 8,080 5.5B 683,500<br>C & I 19,179 5.3B 277,000<br>Constr., Dev. & Land 4,846 2.7B 567,300<br>Cons / Other(3) 46,812 1.1B 23,400<br>Total(3) 129,630 $ 30.5B $ 235,300<br>Loan Relationships<br>Top 10 Represents ~ 2% of total loans<br>Top 20 Represents ~ 4% of total loans<br>Loans by Type<br>Total Loans<br>$30.7 Billion
---
LOAN PORTFOLIO – OFFICE EXPOSURE<br>21<br>FL<br>46%<br>SC<br>20%<br>GA<br>19%<br>VA<br>5%<br>NC<br>4%<br>Other<br>3%<br>AL<br>3%<br>State<br>• Office represents 4% of the loan portfolio<br>• Average loan size only $1.4 million<br>• 97% located in the SouthState footprint<br>• Approximately 10% is located within the Central Business District(1)<br>• 82% of the portfolio is less than 150K square feet(1)<br>• 88% does not mature until 2025 or after<br>• 59% weighted average Loan to Value(2)<br>• 1.64x weighted average Debt Service Coverage(2)<br>MSA<br>(1)&(2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>Granular and Diversified Office Portfolio<br>Jacksonville<br>Gainesville<br>Tampa<br>Miami/Ft. Lauderdale<br>Atlanta<br>Greenville
---
0.44%<br>0.33% 0.35% 0.36% 0.42%<br>0.0%<br>0.3%<br>0.5%<br>0.8%<br>1.0%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Nonperforming Assets to Loans & OREO<br>2.03%<br>1.76% 1.78% 1.61% 1.57%<br>0.97% 0.80% 0.71% 0.54% 0.55%<br>1.06% 0.96% 1.07% 1.07% 1.02%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Criticized & Classified Asset Trends<br>Combined Special Mention / Assets Substandard / Assets<br>ASSET QUALITY METRICS<br>Dollars in millions 22<br>0.04% 0.03%<br>(0.02)%<br>0.01% 0.01%<br> (0.05)%<br> 0.05%<br> 0.15%<br> 0.25%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Net Charge-Offs (Recoveries) to Loans<br>• $123 million in provision for credit losses vs.<br>$3 million in net charge-offs trailing four quarters<br>• Increased ACL plus reserve for unfunded<br>commitments by 23 bps to 1.48% from 1Q22 to<br>1Q23
---
Dollars in millions<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>LOSS ABSORPTION CAPACITY TREND<br>23<br>$(8.4)<br>$19.3<br>$23.9<br>$47.1<br>$33.1<br>$2.3 $2.3<br>$(1.3)<br>$0.9 $1.0<br>($10)<br>$0<br>$10<br>$20<br>$30<br>$40<br>$50<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Provision for Credit Losses & Net Charge-Offs (Recoveries)<br>PCL Net C/O (Recv)<br>$300 $320 $324<br>$356<br>$371<br>$30<br>$33<br>$53<br>$67<br>$85<br>1.25% 1.26%<br>1.31%<br>1.40%<br>1.48%<br>1.0%<br>1.4%<br>1.8%<br>2.2%<br> $150<br> $200<br> $250<br> $300<br> $350<br> $400<br> $450<br> $500<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Total ACL(1) plus Reserve for Unfunded Commitments<br>Total ACL Reserve for Unfunded Commitments % of Total Loans
---
CAPITAL RATIOS<br>4Q22 1Q23(2)<br>Tangible Common Equity(1) 7.2 % 7.5 %<br>Tier 1 Leverage 8.7 % 9.1 %<br>Tier 1 Common Equity 11.0 % 11.1 %<br>Tier 1 Risk-Based Capital 11.0 % 11.1 %<br>Total Risk-Based Capital 13.0 % 13.3 %<br>Bank CRE Concentration Ratio 249 % 243 %<br>Bank CDL Concentration Ratio 65 % 61 %<br>(1)&(2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 24
---
Liquidity & Capital
---
Dollars in millions, expect for average deposit size per account<br>(1)~(3) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>STABLE FUNDING BASE AND STRONG LIQUIDITY POSITION<br>26<br>• 1.5 million accounts, with an average deposit size of approximately $24,000, which is the lowest in our peer group<br>• Top 10 and 20 deposit relationships represent 3% and 4%, respectively, of total deposits(3)<br>• $2.3 billion of collateralized public funds represents 6% of total deposits; no other deposit category makes up more than 3% of total deposits<br>• Uninsured deposits are 35% of total deposits; uninsured and uncollateralized deposits represent 30% of total deposits(2)<br>Primary Contingency Funding Sources at March 31, 2023<br>(in millions)<br>Total<br>Available Amount Used<br>Net<br>Availability<br>Cash and Cash Equivalents $ 1,997 $ — $ 1,997<br>Federal Home Loan Bank of Atlanta 6,896 902 5,994<br>Federal Reserve Discount Window 2,525 — 2,525<br>Brokered Deposits(1) 5,460 1,396 4,064<br>Unpledged Securities, at Par 4,515 — 4,515<br>Total Primary Liquidity Sources $ 21,393 $ 2,298 $ 19,095<br>Uninsured and Uncollateralized Deposits(2) 10,837<br>Coverage Ratio Uninsured and Uncollateralized Deposits 176%
---
13.30%<br>11.60%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br>14.00%<br>As Reported With AOCI Impact<br>Total Risk-based Capital Ratio<br>10.00%<br>8.00%<br>9.05%<br>7.78%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br>14.00%<br>As Reported With AOCI Impact<br>Tier 1 Leverage Ratio<br>5.00%<br>4.00%<br>11.13%<br>9.43%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br>14.00%<br>As Reported With AOCI Impact<br>CET 1 Risk-based Capital Ratio<br>6.50%<br>4.50%<br>WELL CAPITALIZED INCLUDING AOCI IMPACT<br>As Reported capital ratios are preliminary.<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 27<br>7.50% 7.50%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br>14.00%<br>As Reported With AOCI Impact<br>TCE Ratio(1)<br>Minimum Capital Ratio Well Capitalized Minimum
---
44%<br>28%<br>22% 4%<br>1%<br>0.2%<br>Municipal Bond Rating<br>AAA<br>AA+<br>AA<br>AA-A+<br>A<br>Dollars in billions, unless otherwise noted; data as of March 31, 2023<br>Amounts may not total due to rounding.<br>† , (1)~(4) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>1.75%<br>2.03% 2.06%<br>2.29% 2.37%<br>1.0%<br>1.4%<br>1.7%<br>2.1%<br>2.4%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Investment Securities Yield(2)<br>HIGH QUALITY INVESTMENT PORTFOLIO<br>72%<br>15%<br>12%<br>0.3%<br>Investment Portfolio† Composition<br>Agency MBS(1)<br>Treasury, Agency & SBA<br>Municipal<br>Corporates<br>Type<br>AFS HTM<br>Balance Duration<br>(yrs)(3,4) Balance Duration<br>(yrs)(4)<br>Agency MBS(1) $3.3B 5.5 $2.4B 6.3<br>Municipal $1.0B 9.1 — —<br>Treasury, Agency & SBA $0.9B 2.9 $0.3B 5.8<br>Corporates $0.03B 3.3 — —<br>Total $5.2B 5.7 $2.6B 6.2<br>28<br>Total Investment<br>Portfolio†<br>$7.8 Billion<br>• 95% of municipal portfolio is AA or higher rated<br>• ~$306 million in documented ESG investments and ~$121 million<br>CRA eligible investments(4)
---
Appendix
---
LOAN PORTFOLIO – NON OWNER - OCCUPIED COMMERCIAL REAL ESTATE (1)<br>Balance and average loan size in millions<br>(1)~(3) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 30<br>Loan Type Balance Avg Loan Size<br>Wtd Avg<br>DSC(2)<br>Wtd Avg<br>LTV(2) AL% FL% GA% NC% SC% VA%<br>OTHER<br>%<br>Non-Accrual<br>%(3)<br>Substandard<br>& Accruing<br>%(3)<br>Special<br>Mention<br>%(3)<br>Retail $2,119 $1.6 1.79 56% 2% 55% 17% 8% 10% 2% 6% —% 0.35% 0.13%<br>Office 1,324 1.4 1.64 59% 3% 46% 19% 4% 20% 5% 3% 0.01% 0.50% 0.22%<br>Warehouse / Industrial 987 1.3 1.73 59% 7% 48% 19% 6% 11% 6% 2% 0.02% 0.28% 0.24%<br>Hotel 984 4.2 1.90 59% 4% 18% 12% 12% 37% 11% 6% 0.05% 3.04% 3.32%<br>Multifamily 761 1.7 1.47 58% 7% 32% 27% 6% 19% 4% 4% —% 0.38% 0.72%<br>Medical 495 1.6 1.84 59% 2% 58% 8% 9% 17% 6% 2% 0.15% 0.09% 0.23%<br>Other 494 1.1 1.52 60% 6% 38% 18% 13% 22% 2% 2% —% 0.26% 3.98%<br>Self Storage 363 3.2 1.64 58% 5% 56% 20% 4% 7% 0% 9% —% —% 0.16%<br>Nursing Home 198 3.5 2.00 59% 1% 26% 12% 10% 31% 16 4% 7.27% 4.75% 14.09%
---
(1)&(2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>71%<br>15%<br>12%<br>2%<br>Consumer, Residential Mtg and HELOC Segment<br>Mortgage(1)<br>HELOCs<br>Other Consumer<br>CD-Secured<br>LOAN PORTFOLIO – CONSUMER, RESIDENTIAL MORTGAGE AND HELOC<br>Credit Indicator<br>4Q22 1Q23<br>HELOC MORTGAGE HELOC MORTGAGE<br>Wtd. Avg. Credit Score of Originations 774 774 772 768<br>Wtd. Avq. Credit Score of Portfolio 772 764 769 764<br>Wtd. Avg. LTV(2) 59% 77% 59% 73%<br>Wtd. Avg. DTI of Originations 31% 33% 32% 34%<br>Utilization Rate 38% N/A 38% N/A<br>31<br>Credit Indicator 4Q22 1Q23<br>NPL Ratio (Non-Accruals & 90+ DPD & Accruing) 0.35% 0.35%<br>Net Charge-Offs Ratio 0.00% 0.00%<br>30+ DPD Ratio (Accruing & Non-Accruing) 0.52% 0.36%<br>90+ DPD Ratio (Accruing and Non-Accruing) 0.12% 0.12%<br>• 41%(1) of HELOCs are first mortgage
---
CURRENT & HISTORICAL 5 - QTR PERFORMANCE (1)<br>75% 79% 83% 86% 84%<br>25% 21% 17% 14% 16%<br>$348M $405M $438M<br>$462M $453M<br>3.65%<br>0.0%<br>0.7%<br>1.3%<br>2.0%<br>2.6%<br>3.3%<br>3.9%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>120%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Revenue Composition<br>NIM, TE / Revenue Noninterest Income / Revenue Avg. 10-year UST<br>Total<br>Revenue<br>Dollars in millions<br>(1)&(2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>$86 $87<br>$73<br>$63 $71<br>0.81%<br>0.76%<br>0.64%<br>0.57%<br>0.66%<br>0.5%<br>0.6%<br>0.7%<br>0.8%<br>0.9%<br>1.0%<br> $-<br> $20<br> $40<br> $60<br> $80<br> $100<br> $120<br> $140<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Noninterest Income<br>Noninterest Income Noninterest Income / Avg. Assets<br>$263<br>$318<br>$365<br>$398 2.77% $382<br>3.12%<br>3.58%<br>3.99% 3.93%<br>2.0%<br>2.5%<br>3.0%<br>3.5%<br>4.0%<br>4.5%<br> $200<br> $300<br> $400<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Net Interest Margin (“NIM”, TE)<br>NIM, TE ($) NIM, TE (%)<br>63% 55% 53% 48% 51% 60% 54% 50% 48% 49%<br>0%<br>15%<br>30%<br>45%<br>60%<br>75%<br>90%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Efficiency Ratio<br>Efficiency Ratio Adjusted Efficiency Ratio<br>32<br>(2)
---
QTD Production ($mm) $1,271 $693 $556<br>Refinance 30% 6% 5%<br>Purchase 70% 94% 95%<br>72%<br>28%<br>1Q23<br>MORTGAGE BANKING DIVISION<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 33<br>Highlights Quarterly Mortgage Production<br>Gain on Sale Margin<br>• Mortgage banking income of $4.3 million in 1Q 2023<br>compared to ($545) thousand in 4Q 2022<br>• Secondary pipeline of $107 million at 1Q 2023, as<br>compared to $39 million at 4Q 2022<br>2.87%<br>2.13% 2.16%<br>1.36%<br>2.33%<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Mortgage Banking Income ($mm)<br>53%<br>47%<br>1Q22 Portfolio<br>Secondary<br>81%<br>19%<br>4Q22<br>1Q22 4Q22 1Q23<br>Secondary Market<br>Gain on Sale, net $ 14,381 $ 460 $ 2,460<br>Fair Value Change(1) (6,383) 317 306<br> Total Secondary Market Mortgage Income $ 7,998 $ 777 $ 2,766<br>MSR<br>Servicing Fee Income $ 3,837 $ 4,160 $ 4,119<br>Fair Value Change / Decay (1,241) (5,482) (2,553)<br> Total MSR-Related Income $ 2,596 $ (1,322) $ 1,566<br>Total Mortgage Banking Income $ 10,594 $ (545) $ 4,332
---
Cumulative Consumer<br>R/E Loan Growth ($) $(12) $(98) $(264) $(486) $(625) $(712) $(727) $(653) $(535) $(18) $454 $952 $1,337<br>($300)<br>($150)<br>$0<br>$150<br>$300<br>$450<br>$600<br>$(12) $(86)<br>$(167)<br>$(221)<br>$(139) $(87) $(15)<br>$73 $119<br>$517 $472 $498<br>$386<br>3.63%<br>3.46% 3.25% 3.04% 3.08%<br>3.00%<br>3.04%<br>3.25%<br>4.25%<br>5.54%<br>6.21%<br>7.08%<br>6.38%<br>3.07%<br>4.49% 4.11% 4.56% 4.33%<br>2.85%<br>3.13%<br>2.83%<br>2.87%<br>2.13% 2.16%<br>1.36%<br>2.33%<br> -%<br> 2.0%<br> 4.0%<br> 6.0%<br> 8.0%<br> $(300)<br> $(100)<br> $100<br> $300<br> $500<br> $700<br>1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Consumer R/E Loan Growth ($) 30-yr Fixed Mortgage Rate GOS Margin<br>RESIDENTIAL MORTGAGE PORTFOLIO<br>GAIN ON SALE (“GOS”) MARGIN AND INTEREST RATES<br>Dollars in millions<br>(1) & (2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 34<br>(1)(2) (2)
---
($0.04) $(1.5) $(4.1) $(8.5) $(8.4)<br>$28.0 $27.6<br>$20.6<br>$16.8<br>$22.0<br>($10.0)<br>($5.0)<br>$0.0<br>$5.0<br>$10.0<br>$15.0<br>$20.0<br>$25.0<br>$30.0<br>$35.0<br> $(10)<br> $(5)<br> $-<br> $5<br> $10<br> $15<br> $20<br> $25<br> $30<br> $35<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>$ in millions<br>Correspondent Revenue Breakout<br>ARC Revenues, gross Interest on VM FI Revenues Operational Revenues Total Revenues, gross<br>• Provides capital markets hedging (ARC), fixed income sales, international, clearing and<br>other services to over 1,200 financial institutions across the country<br>CORRESPONDENT BANKING DIVISION<br>35<br>1,201 Financial Institution Clients<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46<br>Correspondent banking and capital<br>market income, gross $ 27,994 $ 27,604 $ 20,552 $ 16,760 $ 21,956<br>Interest on centrally-cleared<br>Variation Margin ("VM")(1) (44) (1,536) (4,125) (8,451) (8,362)<br> Total Correspondent Banking and<br>Capital Market Income $ 27,950 $ 26,068 $ 16,427 $ 8,309 $ 13,594
---
DIGITAL TRENDS<br>36<br>68% 65%<br>32%<br>35%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>1Q22 1Q23<br>Branch Digital<br>Digital Deposits<br>$52<br>$100<br>$0<br>$20<br>$40<br>$60<br>$80<br>$100<br>$120<br>1Q22 1Q23<br>Millions<br>M<br>M<br>Zelle P2P Transactions<br>Digital Sales – Deposit Accounts Digital Sales – Loans *<br>81% 79%<br>19% 21%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>1Q22 1Q23<br>Branch Digital<br>84% 82%<br>16% 18%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>1Q22 1Q23<br>Branch Digital<br>351,000<br>411,000<br>0<br>50,000<br>100,000<br>150,000<br>200,000<br>250,000<br>300,000<br>350,000<br>400,000<br>450,000<br>1Q22 1Q23<br>Mobile App Users<br>34,000<br>50,000<br>0<br>10,000<br>20,000<br>30,000<br>40,000<br>50,000<br>60,000<br>1Q22 1Q23<br>Secure Messages & Chat<br>17%<br>Increase 92%<br>Increase<br>47%<br>Increase<br> Consumer DDA and Savings ** Consumer Loans
---
BRANCH OPTIMIZATION<br>85 Branches<br>Average Size $40M<br>422 Branches<br>Acquired Plus<br>12 DeNovo<br>Branches<br>268 Branches<br>Consolidated or<br>Sold<br>251 Branches<br>Average Size<br>$145M<br>Increased deposits per branch 3.6x from 2009 to 1Q23<br>85 434 268 251<br>2009 …..……………..………..……....…………………………….. 1Q 2023<br>37
---
NON - GAAP RECONCILIATIONS – RETURN ON AVG. TANGIBLE<br>COMMON EQUITY & PPNR RETURN ON AVG. ASSETS<br>Dollars in thousands<br>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<br>amortization of intangibles to GAAP basis net income.<br>38<br>Return on Average Tangible Equity<br>4Q22 1Q23<br>Net income (GAAP) $ 143,502 $ 139,926<br>Plus:<br>Amortization of intangibles 8,027 7,299<br>Effective tax rate, excluding DTA write-off 21 % 22 %<br>Amortization of intangibles, net of tax 6,303 5,705<br>Net income plus after-tax amortization of intangibles (non-GAAP) $ 149,805 $ 145,631<br>Average shareholders' common equity $ 4,991,584 $ 5,177,048<br>Less:<br>Average intangible assets 2,044,469 2,036,661<br>Average tangible common equity $ 2,947,115 $ 3,140,387<br> Return on Average Tangible Common Equity (Non-GAAP) 20.2% 18.8%<br>PPNR Return on Average Assets<br>4Q22 1Q23<br>PPNR, Adjusted (Non-GAAP) $ 231,439 $ 221,480<br>Average assets 44,429,894 44,104,478<br>PPNR ROAA 2.07% 2.04%
---
NON - GAAP RECONCILIATIONS – ADJUSTED NET INCOME & ADJUSTED<br>EARNINGS PER SHARE (“EPS”)<br>Dollars in thousands, except for per share data<br>39<br>Adjusted Net Income<br>4Q22 1Q23<br>Net income (GAAP) $ 143,502 $ 139,926<br>Plus:<br>Securities gains, net of tax — (35)<br>Merger, branch consolidation and severance related expense, net of tax 1,211 7,356<br>Adjusted Net Income (Non-GAAP) $ 144,713 $ 147,247<br>Adjusted EPS<br>4Q22 1Q23<br>Diluted weighted-average common shares 76,327 76,389<br>Adjusted net income (non-GAAP) $ 144,713 $ 147,247<br>Adjusted EPS, Diluted (Non-GAAP) $ 1.90 $ 1.93
---
NON - GAAP RECONCILIATIONS – ADJUSTED RETURN ON AVG. ASSETS<br>& AVG. TANGIBLE COMMON EQUITY<br>Dollars in thousands<br>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<br>amortization of intangibles to GAAP basis net income.<br>40<br>Dollars in thousands, except for per share data<br>Adjusted Return on Average Assets<br>4Q22 1Q23<br>Adjusted net income (non-GAAP) $ 144,713 $ 147,247<br>Total average assets 44,429,894 44,104,478<br>Adjusted Return on Average Assets (Non-GAAP) 1.29% 1.35%<br>Adjusted Return on Average Tangible Common Equity<br>4Q22 1Q23<br>Adjusted net income (non-GAAP) $ 144,713 $ 147,247<br>Plus:<br>Amortization of intangibles, net of tax 6,303 5,705<br>Adjusted net income plus after-tax amortization of intangibles (non-GAAP) $ 151,016 $ 152,952<br>Average tangible common equity $ 2,947,115 $ 3,140,387<br>Adjusted Return on Average Tangible Common Equity (Non-GAAP) 20.33% 19.75%
---
NON - GAAP RECONCILIATIONS – NET INTEREST MARGIN & CORE NET<br>INTEREST INCOME (EXCLD. FMV & PPP ACCRETION)<br>Dollars in thousands<br>41<br>Dollars in thousands, except for per share data<br>Net Interest Margin - Tax Equivalent (Non-GAAP)<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Net interest income (GAAP) $ 261,518 $ 315,815 $ 362,334 $ 396,004 $ 381,263<br>Tax equivalent adjustments 1,885 2,249 2,345 2,397 1,020<br>Net interest income (tax equivalent) (Non-GAAP) $ 263,403 $ 318,064 $ 364,679 $ 398,401 $ 382,283<br>Average interest earning assets $ 38,564,661 $ 40,899,365 $ 40,451,174 $ 39,655,736 $39,409,340<br>Net Interest Margin - Tax Equivalent (Non-GAAP) 2.77% 3.12% 3.58% 3.99% 3.93%<br>Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP)<br>1Q22 2Q22 3Q22 1Q23 1Q23<br>Net interest income (GAAP) $ 261,518 $ 315,815 $ 362,334 $ 396,004 $ 381,263<br>Less:<br>Total accretion on acquired loans 6,741 12,770 9,550 7,350 7,398<br>Deferred fees on PPP loans 983 8 — — —<br>Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP) $ 253,794 $ 303,037 $ 352,784 $ 388,654 $ 373,865
---
NON - GAAP RECONCILIATIONS – PPNR, ADJUSTED, PPNR/WEIGHTED AVG.<br>CS & CORRESPONDENT & CAPITAL MARKETS INCOME (UNAUDITED)<br>Dollars and weighted average commons share outstanding in thousands except per share data<br>42<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>SSB SSB SSB SSB SSB<br>Net interest income (GAAP) $ 261,518 $ 315,815 $ 362,334 $ 396,004 $ 381,263<br>Plus:<br>Noninterest income 86,046 86,756 73,053 63,392 71,355<br>Less:<br>Gain on sale of securities — — 30 — 45<br>Total revenue, adjusted (non-GAAP) $ 347,564 $ 402,571 $ 435,357 $ 459,396 $ 452,573<br>Less:<br>Noninterest expense 228,600 231,169 240,433 229,499 240,505<br>PPNR (Non-GAAP) $ 118,964 $ 171,402 $ 194,924 $ 229,897 $ 212,068<br>Plus:<br>Merger, branch consolidation and severance related expense 10,276 5,390 13,679 1,542 9,412<br>Total adjustments $ 10,276 $ 5,390 $ 13,679 $ 1,542 $ 9,412<br>PPNR, Adjusted (Non-GAAP) $ 129,240 $ 176,792 $ 208,603 $ 231,439 $ 221,480<br>Weighted average common shares outstanding, diluted 72,111 76,094 76,182 76,327 76,389<br>PPNR, Adjusted per Weighted Avg. Common Shares Outstanding, Diluted (Non-GAAP) $ 1.79 $ 2.32 $ 2.74 $ 3.03 $ 2.90<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>SSB SSB SSB SSB SSB<br>ARC revenues $ 15,106 $ 13,389 $ 5,102 $ (1,083) $ 3,588<br>FI revenues 10,697 10,151 9,201 6,238 7,012<br>Operational revenues 2,147 2,528 2,124 3,154 2,994<br>Total Correspondent & Capital Market Income $ 27,950 $ 26,068 $ 16,427 $ 8,309 $ 13,594<br>PPNR, Adjusted & PPNR, Adjusted per Weighted Avg. Common Shares Oustanding, Diluted<br>Correspondent & Capital Market Income
---
NON - GAAP RECONCILIATIONS – CURRENT & HISTORICAL: EFFICIENCY<br>RATIOS (UNAUDITED)<br>Dollars in thousands<br>43<br>1Q22 2Q22 3Q22 4Q22 1Q23<br>Noninterest expense (GAAP) $ 228,600 $ 231,169 $ 240,433 $ 229,499 $ 240,505<br>Less: Amortization of intangible assets 8,494 8,847 7,837 8,027 7,299<br>Adjusted noninterest expense (non-GAAP) $ 220,106 $ 222,322 $ 232,596 $ 221,472 $ 233,206<br>Net interest income (GAAP) $ 261,518 $ 315,815 $ 362,334 $ 396,004 $ 381,263<br>Tax Equivalent ("TE") adjustments 1,885 2,249 2,345 2,397 1,020<br>Net interest income, TE (non-GAAP) $ 263,403 $ 318,064 $ 364,679 $ 398,401 $ 382,283<br>Noninterest income (GAAP) $ 86,046 $ 86,756 $ 73,053 $ 63,392 $ 71,355<br>Less: Gain on sale of securities — — 30 — 45<br>Adjusted noninterest income (non-GAAP) $ 86,046 $ 86,756 $ 73,023 $ 63,392 $ 71,310<br>Efficiency Ratio (Non-GAAP) 63% 55% 53% 48% 51%<br>Noninterest expense (GAAP) $ 228,600 $ 231,169 $ 240,433 $ 229,499 $ 240,505<br>Less:<br>Merger, branch consolidation and severance related expense 10,276 5,390 13,679 1,542 9,412<br>Amortization of intangible assets 8,494 8,847 7,837 8,027 7,299<br>Total adjustments $ 18,770 $ 14,237 $ 21,516 $ 9,569 $ 16,711<br>Adjusted noninterest expense (non-GAAP) $ 209,830 $ 216,932 $ 218,917 $ 219,930 $ 223,794<br>Adjusted Efficiency Ratio (Non-GAAP) 60% 54% 50% 48% 49%
---
NON - GAAP RECONCILIATIONS – TANGIBLE COMMON EQUITY RATIO<br>Dollars in thousands<br>44<br>Tangible Common Equity ("TCE") Ratio<br>4Q22 1Q23<br>Tangible common equity (non-GAAP) $ 3,035,371 $ 3,216,295<br>Total assets (GAAP) 43,918,696 44,923,827<br>Less:<br>Intangible assets 2,039,556 2,032,709<br>Tangible asset (non-GAAP) $ 41,879,140 $ 42,891,118<br>TCE Ratio (Non-GAAP) 7.2% 7.5%
---
NON - GAAP RECONCILIATIONS – CAPITAL RATIOS WITH AOCI IMPACT<br>Dollars in thousands<br>Tier 1 Leverage, CET 1 Risk-based Capital and Total Risk-based Capital Ratios as of March 31, 2023 are preliminary.<br>45<br>March 31, 2023<br>Tier 1 capital $ 3,891<br>Average Assets for leverage purposes 42,985<br>Tier 1 Leverage Ratio 9.05%<br>Tier 1 capital 3,891<br>Plus:<br>AOCI impact, net of tax (613)<br>Adjusted Tier 1 capital with AOCI impact 3,278<br>Average assets for leverage purposes 42,985<br>Plus:<br>Unrealized losses (currently excluded from leverage assets) (852)<br>Adjusted average assets for leverage purposes 42,133<br>Tier 1 Leverage Ratio with AOCI Impact (non-GAAP) 7.78%<br>Tier 1 Leverage Ratio with AOCI Impact<br>(non-GAAP)<br>March 31, 2023<br>CET 1 $ 3,891<br>Risk-weighted assets 34,950<br>CET 1 Risk-based Capital Ratio 11.13%<br>CET 1 3,891<br>Plus:<br>AOCI impact, net of tax (613)<br>Adjusted CET 1 with AOCI impact 3,278<br>Risk-weighted assets 34,950<br>Plus:<br>Adjustments for risk-weighted assets (174)<br>Adjusted risk-weighted assets 34,776<br>CET 1 Risk-based Capital Ratio with AOCI Impact (non-GAAP) 9.43%<br>CET 1 Risk-based Capital Ratio with AOCI Impact<br>(non-GAAP)<br>March 31, 2023<br>Total Risk-based Capital $ 4,648<br>Risk-weighted Assets 34,950<br>Total Risk-based Capital Ratio 13.30%<br>Total Risk-based Capital 4,648<br>Plus:<br>AOCI impact, net of tax (613)<br>Adjusted total risk-based capital with AOCI impact 4,035<br>Risk-weighted assets 34,950<br>Plus:<br>Adjustments for risk-weighted assets (174)<br>Adjusted risk-weighted assets 34,776<br>Total Risk-based Capital Ratio with AOCI Impact (non-GAAP) 11.60%<br>Total Risk-based Capital Ratio with AOCI Impact<br>(non-GAAP)
---
EARNINGS PRESENTATION END NOTES<br>46<br>Slide 5 End Notes<br>• Loans and deposits as of 3/31/23; excludes $2.0B of loans and $3.7B of deposits from internal accounts and national lines of business<br>• Country GDP as of 2022; State GDP as of 4Q22<br>• Sources: S&P Global, International Monetary Fund, US Bureau of Economic Analysis<br>Slide 9 End Notes<br>(1) The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible returns on equity and common equity measures also add back<br>the after-tax amortization of intangibles to GAAP basis net income; other adjusted figures presented are also Non-GAAP financial measures that exclude the impact of merger, branch consolidation and<br>severance related expenses and gain on sales of securities - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>Slide 10 End Notes<br>(1) Adjusted figures exclude the impact of merger, branch consolidation and severance related expense and gain on sale of securities; Core net interest income excluding loan accretion and net deferred<br>fees on PPP is also a non-GAAP financial measure; Adjusted efficiency ratio is calculated by taking the noninterest expense excluding merger, branch consolidation and severance related expense, gain<br>on sales of securities, and amortization of intangible assets - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>(2) Adjusted PPNR, PPNR ROAA and PPNR per weighted average diluted share are Non-GAAP financial measures that exclude the impact of merger, branch consolidation and severance related expense and<br>gain on sales of securities - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>(3) Tax equivalent NIM is a Non-GAAP financial measure - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>Slide 11 End Notes<br>(1) Adjusted PPNR per weighted average diluted shares; this is a Non-GAAP financial measure that excludes the impact of merger, branch consolidation and severance related expense and gain on sale of<br>securities - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>Slide 12 End Notes<br>(1) Tax equivalent NIM is a Non-GAAP financial measure - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>(2) Accretion includes PPP loans deferred fees and loan discount accretion.<br>(3) Tax equivalent<br>Slide 13 End Notes<br>(1) 1Q22, 2Q22 and 3Q 2022 loan production excludes production by legacy ACBI from March ~ July 2022 (pre-core system conversion); 1Q22 loan portfolio growth excludes acquisition date loan balances<br>acquired from ACBI.<br>(2) 1Q19 loan production excludes production from National Bank of Commerce (“NBC”); National Commerce Corporation, the holding company of NBC, was acquired by CenterState in 2Q 2019.<br>(3) Excludes loans held for sale and PPP; loan production indicates committed balance total; loan portfolio growth indicates quarter-over-quarter loan ending balance growth, excluding loans held for sale<br>and PPP.<br>(4) The combined historical information referred to in this presentation as the “Combined Business Basis” presented is based on the reported GAAP results of the Company and CenterState for the<br>applicable periods without adjustments and the information included in this release has not been prepared in accordance with Article 11 of Regulation S-X, and therefore does not reflect any of the pro<br>forma adjustments that would be required thereby. All Combined Business Basis financial information should be reviewed in connection the historical information of the Company and CenterState, as<br>applicable. The combined historical information excludes ACBI.
---
EARNINGS PRESENTATION END NOTES<br>47<br>Slide 15 End Notes<br>† Core deposits defined as non-time deposits<br>(1) Source: S&P Global Market Intelligence; 1Q23 MRQs available as of April 25, 2023; Peers as disclosed in the most recent SSB proxy statement.<br>Slide 17 End Notes<br>(1) Denotes the percentage change in net interest income from the base scenario that reflects the consensus forecast published mid-April 2023. The consensus forecast projects no further rate increases<br>and two twenty-five basis point rate cuts during 2023 commencing September 2023. The consensus forecast ends 2024 with the upper bound of the federal funds rate at 3.50%.<br>Slide 19 End Notes<br>(1) Excludes loans held for sale and PPP loans.<br>Slide 20 End Notes<br>(1) CDL includes residential construction, commercial construction, and all land development loans.<br>(2) Investor CRE includes nonowner-occupied CRE and other income producing property.<br>(3) Excludes SELF loans acquired from ACBI.<br>Slide 21 End Notes<br>(1) Review consists of all loans over $1 million; Substantially all loans reviewed in the $1 million to $1.5 million population were 50 thousand square feet or smaller and were not located in a Central Business<br>District.<br>(2) Weighted average DSC and LTV information from the Company’s December 31, 2022 stress test using commitment balances, totaling approximately $6 billion; excludes loans below $1.5 million, unless<br>part of a larger relationship.<br>Slide 23 End Notes<br>(1) Unamortized discount on acquired loans was $65 million, $72 million, $80 million, $89 million, and $101 million, for the quarters ended March 31, 2023, December 31, 2022, September 30, 2022, June 30,<br>2022, and March 31, 2022, respectively.<br>Slide 24 End Notes<br>(1) The tangible measures are non-GAAP measures and exclude the effect of period end intangible assets - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>(2) Preliminary<br>Slide 26 End Notes<br>(1) Internal policy limit: 15% of total deposits<br>(2) Uninsured/uncollateralized amounts are estimates and are based on the same methodologies and assumptions used for the Bank’s regulatory reporting requirements by the FDIC for the Call Report.<br>(3) Percentages using month-to-date average balance of top relationships over quarter-to-date average total deposits as of March 31, 2023<br>Slide 27 End Notes<br>(1) The tangible measures are non-GAAP measures and exclude the effect of period end intangible assets - See reconciliation of GAAP to Non-GAAP measures in Appendix.<br>• AOCI represents accumulated other comprehensive income.<br>• As permitted, SouthState elected to exclude AOCI related to both available for sale (“AFS) securities and benefit plans from Tier 1, Common Equity Tier 1 (“CET 1”) and Total Risk-based Capital. Tier 1, CET<br>1 and Total Risk-based Capital ratios with AOCI Impact are non-GAAP measures that include the effect of unrealized losses for AFS securities, tax effected at 24.91%, as of March 31, 2023 in Tier 1, CET 1<br>and Total Risk-based Capital, average assets for leverage purposes and risk-weighted assets. See non-GAAP reconciliations in the Appendix.
---
EARNINGS PRESENTATION END NOTES<br>48<br>Slide 28 End Notes<br>† Investment portfolio excludes non-marketable equity.<br>(1) MBS issued by U.S. government agencies or sponsored enterprises (commercial and residential collateral)<br>(2) Investment securities yield include non-marketable equity and trading securities.<br>(3) Excludes principal receivable balance as of March 31, 2023.<br>(4) Based on current par value<br>Slide 30 End Notes<br>(1) Includes loan types representing 2% or more of investor CRE portfolio; based on the total portfolio of $8.3 billion, excluding 1-4 family rental properties and agricultural loans.<br>(2) Weighted average DSC and LTV information from the Company’s December 31, 2022 stress test using commitment balances, totaling approximately $6 billion; excludes loans below $1.5 million, unless<br>part of a larger relationship.<br>(3) Represents % of each loan type balance.<br>Slide 31 End Notes<br>(1) By net book balance<br>(2) LTV calculated using most recent appraisal and based on loan amount.<br>Slide 32 End Notes<br>(1) Total revenue and noninterest income are adjusted by gains or losses on sales of securities and tax equivalent adjustments; Tax equivalent NIM, efficiency ratio and adjusted efficiency ratio are Non-GAAP financial measures; Adjusted Efficiency Ratio excludes the impact of merger, branch consolidation and severance related expense, gain on sales of securities, and amortization expense on<br>intangible assets, as applicable – See Current & Historical Efficiency Ratios and Net Interest Margin reconciliation in Appendix.<br>(2) Annualized<br>Slide 33 End Notes<br>(1) Includes pipeline, LHFS and MBS forwards.<br>Slide 34 End Notes<br>(1) The combined historical information referred to in this presentation as the “Combined Business Basis” presented is based on the reported GAAP results of the Company and CenterState for the<br>applicable periods without adjustments and the information included in this release has not been prepared in accordance with Article 11 of Regulation S-X, and therefore does not reflect any of the pro<br>forma adjustments that would be required thereby. All Combined Business Basis financial information should be reviewed in connection the historical information of the Company and CenterState, as<br>applicable. The combined historical information excludes ACBI.<br>(2) 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,<br>most notably residential investment loans which were reclassed from consumer R/E to investor commercial real estate category. Consumer R/E loans as of 1Q20, therefore, were reported based on the<br>pre-reclassification figures. The Company estimated re-classifications for the 2Q20 from 1Q20 and for the 1Q20 from 4Q19 growth percentages for the comparison purposes.<br>Slide 35 End Notes<br>(1) Interest on centrally-cleared variation margin (expense or income) is included in ARC revenue within Correspondent Banking and Capital Markets Income.
---