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): October 26, 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 October 26, 2023, SouthState Corporation (“SouthState” or the “Company”) issued a press release announcing its financial results for the three- and nine-month periods ended September 30, 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 October 27, 2023 at 9 a.m. (ET) to discuss the Company’s third quarter 2023 results. Investors may call in (toll free) by dialing (888) 350-3899 within the U.S. and (646) 960-0343 for all other locations (passcode 4200408; host: Will Matthews, CFO). The numbers for international participants are listed at https://events.q4irportal.com/custom/access/2324/. Participants may also pre-register for the conference by navigating to https://events.q4inc.com/attendee/343724935. Access detail will be provided via email upon completion of registration.


Item 7.01				Regulation FD Disclosure.

On October 26, 2023, the Company also made available the presentation (“Presentation”) prepared for use with the press release during the earnings conference call on October 27, 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.

Fourth Quarter 2023 Shareholder Dividend

The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.52 per share, payable on November 17, 2023 to shareholders of record as of November 10, 2023.


Item 9.01		Financial Statements and Exhibits.

	(d)	Exhibits:

	Exhibit No.	Description

	Exhibit 99.1	Press Release, dated October 26, 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,” 2

“plan,” “could,” “potential,” “possible” and variations of such words and similar expressions are intended to identify such forward-looking statements.

SouthState cautions readers that forward-looking statements are subject to certain risks, uncertainties and assumptions that are difficult to predict with regard to, among other things, timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: (1) economic downturn risk, potentially resulting in deterioration in the credit markets, inflation, greater than expected noninterest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential 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 depository 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 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; (5) the impact of increasing digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on the Bank’s results of operations, customer base, expenses, suppliers and operations; (6) controls and procedures risk, including the potential failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures; (7) potential deterioration in real estate values; (8) the impact of competition with other financial institutions, including deposit and loan pricing pressures and the resulting impact, including as a result of compression to net interest margin; (9) risks relating to the ability to retain our culture and attract and retain qualified people; (10) credit risks associated with an obligor’s failure to meet the terms of any contract with the Bank or otherwise fail to perform as agreed under the terms of any loan-related document; (11) risks related to the ability of the Company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (12) liquidity risk affecting the Bank’s ability to meet its obligations when they come due; (13) risks associated with an anticipated increase in SouthState’s investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities SouthState desires to acquire are not available on terms acceptable to SouthState; (14) unexpected outflows of uninsured deposits may require us to sell investment securities at a loss; (15) the loss of value of our investment portfolio could negatively impact market perceptions of us and could lead to deposit withdrawals; (16) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (17) transaction risk arising from problems with service or product delivery; (18) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (19) 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; (20) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (21) 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; (22) 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; (23) reputational and operational risks associated with environment, social and governance (ESG) matters, including the impact of recently passed state legislation and proposed federal and state regulatory guidance and regulation relating to climate change; (24) greater than expected noninterest expenses; (25) excessive loan losses; (26) 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; (27) reputational risk and possible higher than estimated reduced revenue from announced changes in the Bank’s consumer overdraft programs and other deposit products; (28) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (29) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations as well as the discretion of the board of directors of SouthState, SouthState’s performance and other factors; (30) ownership dilution risk associated with potential acquisitions in which SouthState’s stock may be issued as consideration for an acquired company; (31) operational, technological, cultural, 3

regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash consideration; (32) 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; (33) geopolitical risk from terrorist activities and armed conflicts that may result in economic and supply disruptions, and loss of market and consumer confidence; and (34) 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: October 26, 2023

Exhibit 99.1

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

WINTER HAVEN, FL – October 26, 2023 – SouthState Corporation (NASDAQ: SSB) today released its unaudited results of operations and other financial information for the three-month and nine-month periods ended September 30, 2023.

“Despite the challenges of the economic backdrop and yield curve, SouthState delivered another quarter of steady, mid-single digit growth in loans and customer deposits", said John C. Corbett, SouthState’s Chief Executive Officer. "Our granular and relationship-based deposit funding continues to act as a ballast for our franchise. While we remain mindful of the lag effects of the rapid rise in interest rates on the broader economy, we are confident in our underwriting discipline and the benefits of being located in many of the fastest growing markets in the country."

Highlights of the third quarter of 2023 include:

Returns

●	Reported Diluted Earnings per Share (“EPS”) of $1.62; Adjusted Diluted EPS (Non-GAAP) of $1.62
●	Net Income of $124.1 million; Adjusted Net Income (Non-GAAP) of $124.3 million
---	---
●	Return on Average Common Equity of 9.2%; Return on Average Tangible Common Equity (Non-GAAP) and Adjusted Return on Average Tangible Common Equity^^(Non-GAAP) of 15.5%*
---	---
●	Return on Average Assets (“ROAA”) and Adjusted ROAA (Non-GAAP) of 1.10%*
---	---
●	Pre-Provision Net Revenue (“PPNR”) per weighted average diluted share (Non-GAAP) of $2.48
---	---
●	Book Value per Share of $68.81; Tangible Book Value (“TBV”) per Share (Non-GAAP) of $42.26
---	---

Performance

●	Net Interest Income of $355 million; Core Net Interest Income (excluding loan accretion) (Non-GAAP) of $351 million
●	Net Interest Margin (“NIM”), non-tax equivalent of 3.49% and tax equivalent (Non-GAAP) of 3.50%
---	---
●	Net charge-offs of $13.2 million, or 0.16% annualized; $32.7 million Provision for Credit Losses (“PCL”), including release for unfunded commitments; 3 basis points build in total allowance for credit losses (“ACL”) plus reserve for unfunded commitments to 1.59%; Year-to-date net charge-offs of $17.5 million, or 0.08% annualized
---	---
●	Noninterest Income of $73 million, down $4 million compared to the prior quarter, primarily due to a decrease in correspondent banking and capital markets income; Noninterest Income represented 0.64% of average assets for the third quarter of 2023
---	---
●	Efficiency Ratio and Adjusted Efficiency Ratio (Non-GAAP) of 54%
---	---

Balance Sheet

●	Loans increased $480 million, or 6% annualized, led by consumer real estate and investor commercial real estate; ending loan to deposit ratio of 87%
●	Deposits increased $193 million, or 2% annualized, despite a $128 million decline in brokered CDs; excluding brokered CDs, deposits increased $321 million, or 4% annualized, from prior quarter
---	---
●	Total deposit cost of 1.44%, up 0.33% from prior quarter, resulting in a 27% cycle-to-date beta
---	---
●	Other borrowings decreased $400 million as a result of FHLB advance payoffs during the quarter
---	---
●	Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of 7.5%, 13.8%, 9.3%, and 11.5%, respectively†
---	---

Subsequent Events

●	The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.52 per share, payable on November 17, 2023 to shareholders of record as of November 10, 2023

∗ Annualized percentages

† Preliminary

Financial Performance


	Three Months Ended										Nine Months Ended
(Dollars in thousands, except per share data)	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
INCOME STATEMENT	2023		2023		2023		2022		2022		2023		2022
Interest income
Loans, including fees (1)	$	443,805	$	419,355	$	393,366	$	359,552	$	312,856	$	1,256,525	$	818,473
Investment securities, trading securities, federal funds sold and securities
purchased under agreements to resell (8)		56,704		58,698		57,043		64,337		63,476		172,446		154,664
Total interest income		500,509		478,053		450,409		423,889		376,332		1,428,971		973,137
Interest expense
Deposits (8)		133,944		100,787		55,942		19,945		7,534		290,673		17,040
Federal funds purchased, securities sold under agreements
to repurchase, and other borrowings		11,194		15,523		13,204		7,940		6,464		39,921		16,430
Total interest expense		145,138		116,310		69,146		27,885		13,998		330,594		33,470
Net interest income (8)		355,371		361,743		381,263		396,004		362,334		1,098,377		939,667
Provision for credit losses		32,709		38,389		33,091		47,142		23,876		104,189		34,713
Net interest income after provision for credit losses		322,662		323,354		348,172		348,862		338,458		994,188		904,954
Noninterest income (8)		72,848		77,214		71,355		63,392		73,053		221,417		245,855
Noninterest expense
Operating expense		238,042		240,818		231,093		227,957		226,754		709,953		670,857
Merger, branch consolidation and severance related expense		164		1,808		9,412		1,542		13,679		11,384		29,345
Total noninterest expense		238,206		242,626		240,505		229,499		240,433		721,337		700,202
Income before provision for income taxes		157,304		157,942		179,022		182,755		171,078		494,268		450,607
Income taxes provision		33,160		34,495		39,096		39,253		38,035		106,751		98,060
Net income	$	124,144	$	123,447	$	139,926	$	143,502	$	133,043	$	387,517	$	352,547

Adjusted net income (non-GAAP) (2)
Net income (GAAP)	$	124,144	$	123,447	$	139,926	$	143,502	$	133,043	$	387,517	$	352,547
Securities gains, net of tax		—		—		(35)		—		(24)		(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		130		1,414		7,356		1,211		10,638		8,900		22,953
Adjusted net income (non-GAAP)	$	124,274	$	124,861	$	147,247	$	144,713	$	143,657	$	396,382	$	388,968

Basic earnings per common share	$	1.63	$	1.62	$	1.84	$	1.90	$	1.76	$	5.10	$	4.75
Diluted earnings per common share	$	1.62	$	1.62	$	1.83	$	1.88	$	1.75	$	5.07	$	4.71
Adjusted net income per common share - Basic (non-GAAP) (2)	$	1.63	$	1.64	$	1.94	$	1.91	$	1.90	$	5.21	$	5.24
Adjusted net income per common share - Diluted (non-GAAP) (2)	$	1.62	$	1.63	$	1.93	$	1.90	$	1.89	$	5.19	$	5.20
Dividends per common share	$	0.52	$	0.50	$	0.50	$	0.50	$	0.50	$	1.52	$	1.48
Basic weighted-average common shares outstanding		76,139,170		76,057,977		75,902,440		75,639,640		75,605,960		76,034,062		74,184,816
Diluted weighted-average common shares outstanding		76,571,430		76,417,537		76,388,954		76,326,777		76,182,131		76,445,649		74,791,139
Effective tax rate		21.08%		21.84%		21.84%		21.48%		22.23%		21.60%		21.76%

Performance and Capital Ratios


	Three Months Ended															Nine Months Ended
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,		Sep. 30,
	2023			2023			2023			2022			2022			2023		2022
PERFORMANCE RATIOS
Return on average assets (annualized) (8)		1.10	%		1.11	%		1.29	%		1.28	%		1.17	%	1.16	%	1.06	%
Adjusted return on average assets (annualized) (non-GAAP) (2) (8)		1.10	%		1.12	%		1.35	%		1.29	%		1.27	%	1.19	%	1.17	%
Return on average common equity (annualized)		9.24	%		9.34	%		10.96	%		11.41	%		10.31	%	9.83	%	9.32	%
Adjusted return on average common equity (annualized) (non-GAAP) (2)		9.25	%		9.45	%		11.53	%		11.50	%		11.13	%	10.06	%	10.28	%
Return on average tangible common equity (annualized) (non-GAAP) (3)		15.52	%		15.81	%		18.81	%		20.17	%		17.99	%	16.67	%	16.19	%
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)		15.54	%		15.98	%		19.75	%		20.33	%		19.36	%	17.03	%	17.77	%
Efficiency ratio (tax equivalent)		54.00	%		53.59	%		51.41	%		47.96	%		53.14	%	52.98	%	56.63	%
Adjusted efficiency ratio (non-GAAP) (4)		53.96	%		53.18	%		49.34	%		47.63	%		50.02	%	52.11	%	54.17	%
Dividend payout ratio (5)		31.84	%		30.75	%		27.09	%		26.40	%		28.44	%	29.78	%	30.82	%
Book value per common share	$	68.81		$	69.61		$	69.19		$	67.04		$	65.03
Tangible book value per common share (non-GAAP) (3)	$	42.26		$	42.96		$	42.40		$	40.09		$	37.97

CAPITAL RATIOS
Equity-to-assets (8)		11.6	%		11.8	%		11.7	%		11.6	%		11.1	%
Tangible equity-to-tangible assets (non-GAAP) (3) (8)		7.5	%		7.6	%		7.5	%		7.2	%		6.8	%
Tier 1 leverage (6) (8)		9.3	%		9.2	%		9.1	%		8.7	%		8.4	%
Tier 1 common equity (6) (8)		11.5	%		11.3	%		11.1	%		11.0	%		11.0	%
Tier 1 risk-based capital (6) (8)		11.5	%		11.3	%		11.1	%		11.0	%		11.0	%
Total risk-based capital (6) (8)		13.8	%		13.5	%		13.3	%		13.0	%		13.0	%

Balance Sheet


	Ending Balance
(Dollars in thousands, except per share and share data)	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
BALANCE SHEET	2023		2023		2023		2022		2022
Assets
Cash and due from banks	$	514,917	$	552,900	$	558,158	$	548,387	$	394,794
Federal funds sold and interest-earning deposits with banks (8)		814,220		960,849		1,438,504		764,176		2,529,415
Cash and cash equivalents		1,329,137		1,513,749		1,996,662		1,312,563		2,924,209

Trading securities, at fair value		114,154		56,580		16,039		31,263		51,940
Investment securities:
Securities held to maturity		2,533,713		2,585,155		2,636,673		2,683,241		2,738,178
Securities available for sale, at fair value		4,623,618		4,949,334		5,159,999		5,326,822		5,369,610
Other investments		187,152		196,728		217,991		179,717		179,755
Total investment securities		7,344,483		7,731,217		8,014,663		8,189,780		8,287,543
Loans held for sale		27,443		42,951		27,289		28,968		34,477
Loans:
Purchased credit deteriorated		1,171,543		1,269,983		1,325,400		1,429,731		1,544,562
Purchased non-credit deteriorated		5,064,254		5,275,913		5,620,290		5,943,092		6,365,175
Non-acquired		25,780,875		24,990,889		23,750,452		22,805,039		20,926,566
Less allowance for credit losses		(447,956)		(427,392)		(370,645)		(356,444)		(324,398)
Loans, net		31,568,716		31,109,393		30,325,497		29,821,418		28,511,905
Other real estate owned ("OREO")		434		1,080		3,473		1,023		2,160
Premises and equipment, net		516,583		518,353		517,146		520,635		531,160
Bank owned life insurance		984,881		979,494		967,750		964,708		960,052
Mortgage servicing rights		89,476		87,539		85,406		86,610		90,459
Core deposit and other intangibles		95,094		102,256		109,603		116,450		125,390
Goodwill		1,923,106		1,923,106		1,923,106		1,923,106		1,922,525
Other assets (8)		995,621		874,614		937,193		922,172		980,557
Total assets	$	44,989,128	$	44,940,332	$	44,923,827	$	43,918,696	$	44,422,377

Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing	$	11,158,431	$	11,489,483	$	12,422,583	$	13,168,656	$	13,660,244
Interest-bearing (8)		25,776,767		25,252,395		23,979,009		23,181,967		23,249,545
Total deposits		36,935,198		36,741,878		36,401,592		36,350,623		36,909,789
Federal funds purchased and securities
sold under agreements to repurchase		513,304		581,446		544,108		556,417		557,802
Other borrowings		391,997		792,090		1,292,182		392,275		392,368
Reserve for unfunded commitments		62,347		63,399		85,068		67,215		52,991
Other liabilities (8)		1,855,295		1,471,509		1,351,873		1,477,239		1,588,241
Total liabilities		39,758,141		39,650,322		39,674,823		38,843,769		39,501,191

Shareholders' equity:
Common stock - $2.50 par value; authorized 160,000,000 shares		190,043		189,990		189,649		189,261		189,191
Surplus		4,238,753		4,228,910		4,224,503		4,215,712		4,207,040
Retained earnings		1,618,080		1,533,508		1,448,636		1,347,042		1,241,413
Accumulated other comprehensive loss		(815,889)		(662,398)		(613,784)		(677,088)		(716,458)
Total shareholders' equity		5,230,987		5,290,010		5,249,004		5,074,927		4,921,186
Total liabilities and shareholders' equity	$	44,989,128	$	44,940,332	$	44,923,827	$	43,918,696	$	44,422,377

Common shares issued and outstanding		76,017,366		75,995,979		75,859,665		75,704,563		75,676,445

Net Interest Income and Margin


		Three Months Ended
		Sep. 30, 2023					Jun. 30, 2023					Sep. 30, 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)		$	822,805	$	10,831	5.22%	$	947,526	$	11,858	5.02%	$	3,403,421	$	18,190	2.12%
Investment securities			7,714,079		45,873	2.36%		7,994,330		46,840	2.35%		8,705,657		45,286	2.06%
Loans held for sale			34,736		517	5.90%		36,114		568	6.31%		47,119		620	5.22%
Total loans, excluding PPP			31,799,469		443,275	5.53%		31,141,951		418,766	5.39%		28,267,741		312,172	4.38%
Total PPP loans			5,291		13	0.97%		7,915		21	1.06%		27,236		64	0.93%
Total loans held for investment			31,804,760		443,288	5.53%		31,149,866		418,787	5.39%		28,294,977		312,236	4.38%
Total interest-earning assets (8)			40,376,380		500,509	4.92%		40,127,836		478,053	4.78%		40,451,174		376,332	3.69%
Noninterest-earning assets (8)			4,464,939					4,500,288					4,534,539
Total Assets		$	44,841,319				$	44,628,124				$	44,985,713

Interest-Bearing Liabilities ("IBL"):
Transaction and money market accounts (8)		$	18,291,300	$	93,465	2.03%	$	17,222,660	$	65,717	1.53%	$	17,503,416	$	5,353	0.12%
Savings deposits			2,845,250		1,919	0.27%		3,031,153		1,951	0.26%		3,621,493		488	0.05%
Certificates and other time deposits			4,413,855		38,560	3.47%		4,328,388		33,119	3.07%		2,627,280		1,693	0.26%
Federal funds purchased			236,732		3,128	5.24%		215,085		2,690	5.02%		240,814		1,312	2.16%
Repurchase agreements			303,339		1,163	1.52%		330,118		845	1.03%		376,985		194	0.20%
Other borrowings			456,187		6,903	6.00%		865,770		11,988	5.55%		392,427		4,958	5.01%
Total interest-bearing liabilities (8)			26,546,663		145,138	2.17%		25,993,174		116,310	1.79%		24,762,415		13,998	0.22%
Noninterest-bearing liabilities ("Non-IBL") (8)			12,965,744					13,333,253					15,101,738
Shareholders' equity			5,328,912					5,301,697					5,121,560
Total Non-IBL and shareholders' equity			18,294,656					18,634,950					20,223,298
Total Liabilities and Shareholders' Equity		$	44,841,319				$	44,628,124				$	44,985,713
Net Interest Income and Margin (Non-Tax Equivalent) (8)				$	355,371	3.49%			$	361,743	3.62%			$	362,334	3.55%
Net Interest Margin (Tax Equivalent) (non-GAAP) (8)						3.50%					3.62%					3.58%
Total Deposit Cost (without Debt and Other Borrowings)						1.44%					1.11%					0.08%
Overall Cost of Funds (including Demand Deposits)						1.52%					1.23%					0.14%

Total Accretion on Acquired Loans (1)				$	4,053				$	5,481				$	9,550
Tax Equivalent ("TE") Adjustment				$	646				$	698				$	2,345
(1)	The remaining loan discount on acquired loans to be accreted into loan interest income totals $55.2 million as of September 30, 2023.
---	---

Noninterest Income and Expense


	Three Months Ended										Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
(Dollars in thousands)	2023		2023		2023		2022		2022		2023		2022
Noninterest Income:
Fees on deposit accounts	$	32,830	$	33,101	$	29,859	$	33,612	$	30,327	$	95,790	$	91,198
Mortgage banking income (loss)		2,478		4,354		4,332		(545)		2,262		11,164		18,336
Trust and investment services income		9,556		9,823		9,937		9,867		9,603		29,316		29,152
Securities gains, net		—		—		45		—		30		45		30
Correspondent banking and capital markets income (8)		24,808		27,734		21,956		16,760		20,552		74,498		76,150
Expense on centrally-cleared variation margin (8)		(11,892)		(8,547)		(8,362)		(8,451)		(4,125)		(28,801)		(5,705)
Total Correspondent banking and capital markets income (8)		12,916		19,187		13,594		8,309		16,427		45,697		70,445
Bank owned life insurance income		7,039		6,271		6,813		6,723		6,082		20,123		17,588
Other		8,029		4,478		6,775		5,426		8,322		19,282		19,106
Total Noninterest Income (8)	$	72,848	$	77,214	$	71,355	$	63,392	$	73,053	$	221,417	$	245,855

Noninterest Expense:
Salaries and employee benefits	$	146,146	$	147,342	$	144,060	$	140,440	$	139,554	$	437,548	$	414,264
Occupancy expense		22,251		22,196		21,533		22,412		22,490		65,980		67,089
Information services expense		21,428		21,119		19,925		19,847		20,714		62,472		59,854
OREO and loan related (income) expense		613		(14)		169		78		532		768		291
Business development and staff related		5,995		6,672		5,957		5,851		5,090		18,624		14,282
Amortization of intangibles		6,616		7,028		7,299		8,027		7,837		20,943		25,178
Professional fees		3,456		4,364		3,702		3,756		3,495		11,522		11,575
Supplies and printing expense		2,623		2,554		2,640		2,411		2,621		7,817		7,210
FDIC assessment and other regulatory charges		8,632		9,819		6,294		6,589		6,300		24,745		16,444
Advertising and marketing		3,009		1,521		2,118		2,669		2,170		6,648		6,219
Other operating expenses		17,273		18,217		17,396		15,877		15,951		52,886		48,451
Merger, branch consolidation and severance related expense		164		1,808		9,412		1,542		13,679		11,384		29,345
Total Noninterest Expense	$	238,206	$	242,626	$	240,505	$	229,499	$	240,433	$	721,337	$	700,202

* During the first quarter of 2023, 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:


	Ending Balance
(Dollars in thousands)	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
LOAN PORTFOLIO	2023		2023		2023		2022		2022
Construction and land development * †	$	2,776,241	$	2,817,125	$	2,749,290	$	2,860,360	$	2,550,552
Investor commercial real estate*		9,372,683		9,187,948		8,957,507		8,769,201		8,641,316
Commercial owner occupied real estate		5,539,097		5,585,951		5,522,514		5,460,193		5,426,216
Commercial and industrial		5,458,229		5,378,294		5,321,306		5,313,483		4,977,737
Consumer real estate *		7,608,145		7,275,495		6,860,831		6,475,210		5,977,120
Consumer/other		1,262,277		1,291,972		1,284,694		1,299,415		1,263,362
Total Loans	$	32,016,672	$	31,536,785	$	30,696,142	$	30,177,862	$	28,836,303

* 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 $863.1 million, $928.4 million, $893.7 million, $904.1 million, and $881.3 million for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.


	Ending Balance
(Dollars in thousands)	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
DEPOSITS	2023		2023		2023		2022		2022
Noninterest-bearing checking	$	11,158,431	$	11,489,483	$	12,422,583	$	13,168,656	$	13,660,244
Interest-bearing checking		7,806,243		8,185,609		8,316,023		8,955,519		8,741,447
Savings		2,760,166		2,931,320		3,156,214		3,464,351		3,602,560
Money market (8)		10,756,431		9,710,032		8,388,275		8,342,111		8,369,826
Time deposits		4,453,927		4,425,434		4,118,497		2,419,986		2,535,712
Total Deposits (8)	$	36,935,198	$	36,741,878	$	36,401,592	$	36,350,623	$	36,909,789

Core Deposits (excludes Time Deposits) (8)	$	32,481,271	$	32,316,444	$	32,283,095	$	33,930,637	$	34,374,077

Asset Quality


	Ending Balance
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
(Dollars in thousands)	2023		2023		2023		2022		2022
NONPERFORMING ASSETS:
Non-acquired
Non-acquired nonaccrual loans and restructured loans on nonaccrual	$	105,856	$	104,772	$	68,176	$	44,671	$	34,374
Accruing loans past due 90 days or more		783		3,620		2,667		2,358		2,358
Non-acquired OREO and other nonperforming assets		449		227		186		245		114
Total non-acquired nonperforming assets		107,088		108,619		71,029		47,274		36,846
Acquired
Acquired nonaccrual loans and restructured loans on nonaccrual		57,464		60,734		52,795		59,554		61,866
Accruing loans past due 90 days or more		1,821		571		983		1,992		1,430
Acquired OREO and other nonperforming assets		378		981		3,446		922		2,234
Total acquired nonperforming assets		59,663		62,286		57,224		62,468		65,530
Total nonperforming assets	$	166,751	$	170,905	$	128,253	$	109,742	$	102,376


	Three Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
	2023		2023		2023		2022		2022
ASSET QUALITY RATIOS:
Allowance for credit losses as a percentage of loans		1.40%		1.36%		1.21%		1.18%		1.12%
Allowance for credit losses, including reserve for unfunded commitments, as a percentage of loans		1.59%		1.56%		1.48%		1.40%		1.31%
Allowance for credit losses as a percentage of nonperforming loans		269.98%		251.86%		297.42%		328.29%		324.30%
Net charge-offs (recoveries) as a percentage of average loans (annualized)		0.16%		0.04%		0.01%		0.01%		(0.02)%
Total nonperforming assets as a percentage of total assets		0.37%		0.38%		0.29%		0.25%		0.23%
Nonperforming loans as a percentage of period end loans		0.52%		0.54%		0.41%		0.36%		0.35%

Current Expected Credit Losses (“CECL”)

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


	Allowance for Credit Losses ("ACL and UFC")
(Dollars in thousands)	NonPCD ACL		PCD ACL		Total ACL		UFC
Ending balance 6/30/2023	$	384,296	$	43,096	$	427,392	$	63,399
Charge offs		(16,895)		—		(16,895)		—
Acquired charge offs		(445)		(630)		(1,075)		—
Recoveries		1,804		—		1,804		—
Acquired recoveries		802		2,167		2,969		—
Provision (recovery) for credit losses		40,288		(6,527)		33,761		(1,052)
Ending balance 9/30/2023	$	409,850	$	38,106	$	447,956	$	62,347

Period end loans	$	30,845,129	$	1,171,543	$	32,016,672		N/A
Allowance for Credit Losses to Loans		1.33%		3.25%		1.40%		N/A
Unfunded commitments (off balance sheet) *							$	9,279,535
Reserve to unfunded commitments (off balance sheet)								0.67%

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

Conference Call

The Company will host a conference call to discuss its third quarter results at 9:00 a.m. Eastern Time on October 27, 2023. Callers wishing to participate may call toll-free by dialing (888) 350-3899 within the US and (646) 960-0343 for all other locations. The numbers for international participants are listed at https://events.q4irportal.com/custom/access/2324/. The conference ID number is 4200408. 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 October 27, 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)	Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022
Net income (GAAP)	$	124,144		$	123,447		$	139,926		$	143,502		$	133,043
Provision for credit losses		32,709			38,389			33,091			47,142			23,876
Tax provision		33,160			34,495			39,096			39,253			38,035
Merger, branch consolidation and severance related expense		164			1,808			9,412			1,542			13,679
Securities gains		—			—			(45)			—			(30)
Pre-provision net revenue (PPNR) (Non-GAAP)	$	190,177		$	198,139		$	221,480		$	231,439		$	208,603

Average asset balance (GAAP)	$	44,841,319		$	44,628,124		$	44,104,478		$	44,429,894		$	44,985,713
PPNR ROAA		1.68	%		1.78	%		2.04	%		2.07	%		1.84	%

Diluted weighted-average common shares outstanding		76,571			76,418			76,389			76,327			76,182
PPNR per weighted-average common shares outstanding	$	2.48		$	2.59		$	2.90		$	3.03		$	2.74


(Dollars in thousands)	Three Months Ended
CORE NET INTEREST INCOME (NON-GAAP)	Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022
Net interest income (GAAP) (8)	$	355,371		$	361,743		$	381,263		$	396,004		$	362,334
Less:
Total accretion on acquired loans		4,053			5,481			7,398			7,350			9,550
Core net interest income (Non-GAAP)	$	351,318		$	356,262		$	373,865		$	388,654		$	352,784

NET INTEREST MARGIN ("NIM"), TAX EQUIVALENT (NON-GAAP)
Net interest income (GAAP) (8)	$	355,371		$	361,743		$	381,263		$	396,004		$	362,334
Total average interest-earning assets (8)		40,376,380			40,127,836			39,409,340			39,655,736			40,451,174
NIM, non-tax equivalent (8)		3.49	%		3.62	%		3.92	%		3.96	%		3.55	%

Tax equivalent adjustment (included in NIM, tax equivalent)		646			698			1,020			2,397			2,345
Net interest income, tax equivalent (Non-GAAP) (8)	$	356,017		$	362,441		$	382,283		$	398,401		$	364,679
NIM, tax equivalent (Non-GAAP) (8)		3.50	%		3.62	%		3.93	%		3.99	%		3.58	%


	Three Months Ended															Nine Months Ended
(Dollars in thousands, except per share data)	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,			Sep. 30,
RECONCILIATION OF GAAP TO NON-GAAP	2023			2023			2023			2022			2022			2023			2022
Adjusted Net Income (non-GAAP) (2)
Net income (GAAP)	$	124,144		$	123,447		$	139,926		$	143,502		$	133,043		$	387,517		$	352,547
Securities gains, net of tax		—			—			(35)			—			(24)			(35)			(24)
PCL - NonPCD loans and UFC, net of tax		—			—			—			—			—			—			13,492
Merger, branch consolidation and severance related expense, net of tax		130			1,414			7,356			1,211			10,638			8,900			22,953
Adjusted net income (non-GAAP)	$	124,274		$	124,861		$	147,247		$	144,713		$	143,657		$	396,382		$	388,968

Adjusted Net Income per Common Share - Basic (2)
Earnings per common share - Basic (GAAP)	$	1.63		$	1.62		$	1.84		$	1.90		$	1.76		$	5.10		$	4.75
Effect to adjust for securities gains		—			—			(0.00)			—			(0.00)			(0.00)			(0.00)
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—			—			—			—			—			—			0.18
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.00			0.02			0.10			0.01			0.14			0.11			0.31
Adjusted net income per common share - Basic (non-GAAP)	$	1.63		$	1.64		$	1.94		$	1.91		$	1.90		$	5.21		$	5.24

Adjusted Net Income per Common Share - Diluted (2)
Earnings per common share - Diluted (GAAP)	$	1.62		$	1.62		$	1.83		$	1.88		$	1.75		$	5.07		$	4.71
Effect to adjust for securities gains		—			—			(0.00)			—			(0.00)			(0.00)			(0.00)
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—			—			—			—			—			—			0.18
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.00			0.01			0.10			0.02			0.14			0.12			0.31
Adjusted net income per common share - Diluted (non-GAAP)	$	1.62		$	1.63		$	1.93		$	1.90		$	1.89		$	5.19		$	5.20

Adjusted Return on Average Assets (2)
Return on average assets (GAAP) (8)		1.10	%		1.11	%		1.29	%		1.28	%		1.17	%		1.16	%		1.06	%
Effect to adjust for securities gains		—	%		—	%		(0.00)	%		—	%		(0.00)	%		(0.00)	%		(0.00)	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—	%		—	%		—	%		—	%		—	%		—	%		0.04	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.00	%		0.01	%		0.06	%		0.01	%		0.10	%		0.03	%		0.07	%
Adjusted return on average assets (non-GAAP) (8)		1.10	%		1.12	%		1.35	%		1.29	%		1.27	%		1.19	%		1.17	%

Adjusted Return on Average Common Equity (2)
Return on average common equity (GAAP)		9.24	%		9.34	%		10.96	%		11.41	%		10.31	%		9.83	%		9.32	%
Effect to adjust for securities gains		—	%		—	%		(0.00)	%		—	%		(0.00)	%		(0.00)	%		(0.00)	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—	%		—	%		—	%		—	%		—	%		—	%		0.36	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.01	%		0.11	%		0.57	%		0.09	%		0.82	%		0.23	%		0.60	%
Adjusted return on average common equity (non-GAAP)		9.25	%		9.45	%		11.53	%		11.50	%		11.13	%		10.06	%		10.28	%

Return on Average Common Tangible Equity (3)
Return on average common equity (GAAP)		9.24	%		9.34	%		10.96	%		11.41	%		10.31	%		9.83	%		9.32	%
Effect to adjust for intangible assets		6.28	%		6.47	%		7.85	%		8.76	%		7.68	%		6.84	%		6.87	%
Return on average tangible equity (non-GAAP)		15.52	%		15.81	%		18.81	%		20.17	%		17.99	%		16.67	%		16.19	%

Adjusted Return on Average Common Tangible Equity (2) (3)
Return on average common equity (GAAP)		9.24	%		9.34	%		10.96	%		11.41	%		10.31	%		9.83	%		9.32	%
Effect to adjust for securities gains		—	%		—	%		(0.00)	%		—	%		(0.00)	%		(0.00)	%		(0.00)	%
Effect to adjust for PCL - NonPCD loans and UFC, net of tax		—	%		—	%		—	%		—	%		—	%		—	%		0.36	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		0.01	%		0.11	%		0.58	%		0.10	%		0.82	%		0.23	%		0.61	%
Effect to adjust for intangible assets		6.29	%		6.53	%		8.21	%		8.82	%		8.23	%		6.97	%		7.48	%
Adjusted return on average common tangible equity (non-GAAP)		15.54	%		15.98	%		19.75	%		20.33	%		19.36	%		17.03	%		17.77	%

Adjusted Efficiency Ratio (4)
Efficiency ratio		54.00	%		53.59	%		51.41	%		47.96	%		53.14	%		52.98	%		56.63	%
Effect to adjust for merger, branch consolidation and severance related expense, net of tax		(0.04)	%		(0.41)	%		(2.07)	%		(0.33)	%		(3.12)	%		(0.87)	%		(2.46)	%
Adjusted efficiency ratio		53.96	%		53.18	%		49.34	%		47.63	%		50.02	%		52.11	%		54.17	%

Tangible Book Value Per Common Share (3)
Book value per common share (GAAP)	$	68.81		$	69.61		$	69.19		$	67.04		$	65.03
Effect to adjust for intangible assets		(26.55)			(26.65)			(26.79)			(26.95)			(27.06)
Tangible book value per common share (non-GAAP)	$	42.26		$	42.96		$	42.40		$	40.09		$	37.97

Tangible Equity-to-Tangible Assets (3)
Equity-to-assets (GAAP) (8)		11.63	%		11.77	%		11.68	%		11.56	%		11.08	%
Effect to adjust for intangible assets		(4.15)	%		(4.16)	%		(4.18)	%		(4.31)	%		(4.30)	%
Tangible equity-to-tangible assets (non-GAAP) (8)		7.48	%		7.61	%		7.50	%		7.25	%		6.78	%

Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications have 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 $4.1 million, $5.5 million, $7.4 million, $7.3 million, and $9.6 million during the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 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 $164,000, $1.8 million, $9.4 million, $1.5 million, and $13.7 million for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively; (b) net securities gains of $45,000 and $30,000 for the quarters ended March 31, 2023 and September 30, 2022, respectively.
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(3)	The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of Non-GAAP to GAAP" provide tables that reconcile non-GAAP measures to GAAP.
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(4)	Adjusted efficiency ratio is calculated by taking the noninterest expense excluding merger, 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 $6.6 million, $7.0 million, $7.3 million, $8.0 million, and $7.8 million for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.
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(5)	The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period.
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(6)	September 30, 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.
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(7)	Loan data excludes mortgage loans held for sale.
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(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.
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		Three Months Ended			Nine Months Ended
(Dollars in thousands)		Sep. 30,			Sep. 30,
INCOME STATEMENT		2022			2022
Interest income:
Effect to interest income on federal funds sold and interest-earning
deposits with banks		$	1,522		$	2,203
Interest expense:
Effect to interest expense on money market deposits			(2,603)			(3,502)
Net interest income:
Net effect to net interest income		$	4,125		$	5,705
Noninterest Income:
Effect to correspondent banking and capital market income		$	(4,125)		$	(5,705)

BALANCE SHEET
Assets:
Effect to federal funds sold and interest-earning deposits with banks		$	114,514
Effect to other assets			(870,746)
Net effect to total assets		$	(756,232)

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

AVERAGE BALANCES
Interest-earning assets:
Effect to federal funds sold and interest-earning deposits with banks		$	210,108
Noninterest-earning assets:
Effect to noninterest-earning assets			(569,329)
Net effect to total average assets		$	(359,221)
Interest-bearing liabilities:
Effect to transaction and money market accounts		$	(359,221)
Net effect to total average liabilities		$	(359,221)


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

Net effect to NIM		0.02	%
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	%
Effect to tangible equity-to-tangible assets (non-GAAP) (3)		0.1	%
Effect to Tier 1 leverage		0.1	%
Effect to Tier 1 common equity		0.0	%
Effect to Tier 1 risk-based capital		0.0	%
Effect to Total risk-based capital		0.1	%

Cautionary Statement Regarding Forward Looking Statements

Exhibit 99.2

Earnings Call 3Q 2023<br>October 27, 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<br>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<br>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,”<br>“strategy,” “plan,” “could,” “potential,” “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,<br>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<br>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<br>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<br>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<br>or rumors of failures of other depository 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<br>borrow or raise capital (4) 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; (5) the impact of increasing<br>digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on the Bank’s results of operations, customer base, expenses, suppliers and operations; (6) controls and procedures risk,<br>including the potential failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures; (7) potential deterioration in real estate values; (8) the impact of competition with<br>other financial institutions, including deposit and loan pricing pressures and the resulting impact, including as a result of compression to net interest margin; (9) risks relating to the ability to retain our culture and attract and retain<br>qualified people; (10) credit risks associated with an obligor’s failure to meet the terms of any contract with the Bank or otherwise fail to perform as agreed under the terms of any loan-related document; (11) risks related to the ability of<br>the Company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (12) liquidity risk affecting the Bank’s ability to meet its obligations when they come due; (13) risks associated with an anticipated<br>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<br>available on terms acceptable to SouthState; (14) unexpected outflows of uninsured deposits may require us to sell investment securities at a loss; (15) the loss of value of our investment portfolio could negatively impact market<br>perceptions of us and could lead to deposit withdrawals; (16) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (17) transaction risk arising from problems with<br>service or product delivery; (18) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (19) regulatory change risk<br>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; (20)<br>strategic risk resulting from adverse business decisions or improper implementation of business decisions; (21) reputation risk that adversely affects earnings or capital arising from negative public opinion including the effects of social<br>media on market perceptions of us and banks generally; (22) 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<br>internal or external security breaches, which may subject the Company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (23) reputational and operational risks associated with<br>environment, social and governance (ESG) matters, including the impact of recently passed state legislation and proposed federal and state regulatory guidance and regulation relating to climate change; (24) greater than expected<br>noninterest expenses; (25) excessive loan losses; (26) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the Atlantic Capital integration, and potential difficulties in maintaining<br>relationships with key personnel; (27) reputational risk and possible higher than estimated reduced revenue from announced changes in the Bank’s consumer overdraft programs and other deposit products; (28) the risks of fluctuations in<br>market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (29) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations<br>as well as the discretion of the board of directors of SouthState, SouthState’s performance and other factors; (30) ownership dilution risk associated with potential acquisitions in which SouthState’s stock may be issued as consideration<br>for an acquired company; (31) 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<br>consideration; (32) 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<br>activity and financial markets, and the impact that any of the foregoing may have on SouthState and its customers and other constituencies; (33) geopolitical risk from terrorist activities and armed conflicts that may result in economic<br>and supply disruptions, and loss of market and consumer confidence; and (34) 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<br>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<br>results expressed, implied or otherwise anticipated by such forward-looking 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,<br>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<br>reliance on such statements.
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(1) Financial metrics as of September 30, 2023; market cap as of October 25, 2023<br>SouthState Corporation Overview of Franchise (1)<br>(251) $37<br>Billion in deposits<br>$32<br>Billion in loans<br>$45<br>Billion in assets<br>$4.9<br>Billion market cap<br>Top 35<br>Forbes 100<br>Best Banks<br>in America<br>2023<br>Ranked<br>#2<br>by S&P<br>Global<br>5 Greenwich Excellence & Best Brand Awards for<br>Small Business Banking from Coalition Greenwich<br>3
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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
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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>$1.9B<br>$1.8B<br>$0.8B<br>$0.6B<br>$2.9B<br>$2.0B<br>POSITIONED FOR THE FUTURE IN THE BEST GROWTH MARKETS IN AMERICA<br>5<br>$289<br>$309<br>$677<br>$763<br>$792<br>$1,468<br>AL<br>SC<br>VA<br>NC<br>GA<br>FL<br>GDP by State<br>($ 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>$4.3<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.<br>1.0 0.2 0.4 0.4 0.2 7.2 0.1<br>Population<br>increase<br>(in millions)<br>For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>Population<br>increase<br>(in millions) 3.3 0.6 1.2 1.1 0.7 25.8 0.3<br>$10.6B<br>$11.8B<br>$7.3B<br>$10.9B<br>$0.8B<br>$0.6B<br>$6.6B<br>$6.3B<br>$2.9B<br>$2.0B<br>Loans<br>Deposits<br>$1.9B<br>$1.8B
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Source: U.S. Census Bureau; Bureau of Labor Statistics 2020-2021 AGI data<br>PANDEMIC ACCELERATES POPULATION AND INCOME MIGRATION<br>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<br>Net Gain/Loss in State<br>Adjusted Gross Income<br>Due to Domestic Migration<br>#1 Florida $39.2B<br>#4 North Carolina $4.5B<br>#6 South Carolina $4.2B<br>#12 Georgia $1.3B<br>#15 Alabama $0.7B<br>#44 Virginia -$1.9B
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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
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Quarterly Results
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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>2Q23 3Q23<br>GAAP<br>Net Income $ 123.4 $ 124.1<br>EPS (Diluted) $ 1.62 $ 1.62<br>Return on Average Assets 1.11 % 1.10 %<br>Non-GAAP(1)<br>Return on Average Tangible Common Equity 15.8 % 15.5 %<br>Non-GAAP, Adjusted(1)<br>Net Income $ 124.9 $ 124.3<br>EPS (Diluted) $ 1.63 $ 1.62<br>Return on Average Assets 1.12 % 1.10 %<br>Return on Average Tangible Common Equity 16.0 % 15.5 %
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QUARTERLY HIGHLIGHTS	3Q 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”) and adjusted Diluted EPS (non-GAAP)(1) of $1.62<br>• Pre-Provision Net Revenue (“PPNR”)(non-GAAP)(2) of $190.2 million, or 1.68% PPNR ROAA (non-GAAP)(2)<br>• PPNR per weighted average diluted share (non-GAAP)(2) of $2.48<br>• Loans increased $480 million, or 6% annualized<br>• Deposits increased $193 million, or 2% annualized, despite a $128 million decline in brokered CDs; excluding<br>brokered CDs, deposits increased $321 million, or 4% annualized, from prior quarter<br>• Total deposit cost of 1.44%, up 0.33% from prior quarter, resulting in a 27% cycle-to-date beta<br>• Net interest margin, non-tax equivalent of 3.49% and tax equivalent (non-GAAP)(3) of 3.50%<br>• Efficiency ratio and adjusted efficiency ratio (non-GAAP)(1) of 54%<br>• Net charge-offs of $13.2 million, or 0.16% annualized; Provision for Credit Losses (“PCL”), including release for<br>unfunded commitments, of $32.7 million; 3 basis points build in total allowance for credit losses (“ACL”) plus<br>reserve for unfunded commitments to 1.59%
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PPNR PER DILUTED SHARE (1)<br>$2.74<br>$3.03<br>$2.90<br>$2.59<br>$2.48<br> $1.50<br> $2.00<br> $2.50<br> $3.00<br> $3.50<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>(1) For end note descriptions, Earnings Presentation End Notes starting on slide 46. 11
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$352.8<br>$388.6 $373.9 $356.2 $351.3<br>$9.5<br>$7.4<br>$7.4<br>$5.5 $4.1<br>$362.3<br>$396.0<br>$381.3<br>$361.7 $355.4<br>3.58%<br>3.99%<br>3.93%<br>3.62%<br>3.50%<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> $400<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>$ in millions<br>Net Interest Income excld. Accretion Accretion Net Interest Income Net Interest Margin<br>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)
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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>$2,369<br>$1,459<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>$845<br>$480<br> $(500)<br> $-<br> $500<br> $1,000<br> $1,500<br> $2,000<br> $2,500<br> $3,000<br> $3,500<br> $4,000<br>1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23<br>$ 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)
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Balance Sheet
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3Q22 4Q22 1Q23 2Q23 3Q23<br>DDA / Total Deposits 37% 36% 34% 31% 30%<br>LOAN AND DEPOSIT TRENDS<br>$28.8 $30.2 $30.7 $31.5 $32.0<br> $27.0B<br> $27.5B<br> $28.0B<br> $28.5B<br> $29.0B<br> $29.5B<br> $30.0B<br> $30.5B<br> $31.0B<br> $31.5B<br> $32.0B<br> $-<br> $6<br> $12<br> $18<br> $24<br> $30<br> $36<br> $42<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>$ 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. 15<br>$13.7 $13.2 $12.4 $11.5 $11.2<br>$8.7 $9.0 $8.3 $8.2 $7.8<br>$12.0 $11.8 $11.5 $12.6 $13.5<br>$2.5 $2.4 $4.1 $4.4 $4.5<br>$36.9B $36.4B $36.4B $36.7B $36.9B<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> $42<br>$ in billions<br>Deposits<br>Noninterest-bearing Checking ("DDA") Interest-bearing Checking<br>MMA & Savings Time Deposits
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Investor CRE (2)<br>29%<br>Consumer<br>RE<br>24%<br>Owner-Occupied<br>CRE<br>17%<br>C&I<br>17%<br>CDL (1)<br>9%<br>Cons / Other<br>4%<br>TOTAL LOAN PORTFOLIO<br>16<br>Data as of September 30, 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 8,460 $ 9.4B $ 1,108,000<br>Consumer RE 43,444 7.6B 175,100<br>Owner-Occupied CRE 7,973 5.5B 694,800<br>C & I 19,413 5.5B 280,900<br>Constr., Dev. & Land 4,073 2.8B 681,600<br>Cons / Other(3) 47,043 1.1B 23,500<br>Total(3) 130,406 $ 31.9B $ 244,300<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>$32.0 Billion<br>• SNC loans represent approximately 2% of total outstanding<br>loans at September 30, 2023
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40%<br>31%<br>29%<br>Checking Accounts<br>Composition<br>Commercial<br>Small Business<br>Retail<br>Noninterest-bearing<br>Checking<br>$11.2B<br>Interest-bearing<br>Checking<br>$7.8B Savings<br>$2.8B<br>Money<br>Market<br>$10.8B<br>Time<br>Deposits<br>$4.5B<br>Data as of September 30, 2023<br>Dollars in billions except for average checking balances; Amounts may not total due to rounding.<br>† & (1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>51%<br>44%<br>37%<br>39%<br>12% 17%<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>17<br>Total Deposits<br>$36.9 Billion<br>Deposits by Type<br>Checking Type Avg. Checking Balance<br>Commercial $309,700<br>Small Business $42,700<br>Retail $9,600<br>Total Cost of Deposits 3Q23<br>SSB 144 bps<br>Peer Average(1) 207 bps
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REMAIN WELL - POSITIONED DURING CURRENT CYCLE –<br>PREVIOUS AND CURRENT RISING INTEREST RATE CYCLE<br>Historic deposit beta excludes legacy ACBI. 18<br>0.11%<br>0.75%<br>2.17%<br>3.64%<br>4.50%<br>4.98%<br>5.25%<br>0.05%0.05% 0.08% 0.21%<br>0.63%<br>1.11%<br>1.44%<br>0.0%<br>1.0%<br>2.0%<br>3.0%<br>4.0%<br>5.0%<br>6.0%<br>1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23<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% 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>6.0%<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>27% deposit<br>beta in<br>current cycle<br>to date
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Credit
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LOAN PORTFOLIO – OFFICE EXPOSURE<br>20<br>State<br>• Office represents 4% of the loan portfolio<br>• Average loan size only $1.4 million<br>• 95% located in the SouthState footprint<br>• Approximately 10% is located within the Central Business District(1)<br>• 83% of the portfolio is less than 150K square feet(1)<br>• 90% mature in 2025 or later<br>• 58% weighted average Loan to Value(2)<br>• 1.65x weighted average Debt Service Coverage(2)<br>Granular and Diversified Office Portfolio<br>Greenville<br>Atlanta<br>Miami/Ft. Lauderdale<br>Jacksonville<br>Tampa<br>Charleston<br>MSA<br>(1)&(2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>FL<br>45%<br>SC<br>20%<br>GA<br>17%<br>VA<br>6%<br>Other<br>5%<br>NC<br>4%<br>AL<br>3%
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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. 21<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 $2,126 $1.6 1.78 54% 2% 56% 16% 6% 11% 2% 7% 0.19% 0.20% 0.24%<br>Office 1,317 1.4 1.65 58% 3% 45% 17% 4% 20% 6% 5% —% 6.17% 0.31%<br>Warehouse / Industrial 1,141 1.5 1.73 59% 7% 42% 20% 6% 13% 6% 6% 0.02% 0.26% 0.20%<br>Multifamily 1,064 1.9 1.48 56% 5% 26% 24% 13% 26% 1% 4% —% 1.44% —%<br>Hotel 964 4.5 1.90 58% 4% 18% 9% 14% 39% 10% 5% 0.01% 0.43% 3.08%<br>Medical 513 1.7 1.85 59% 0.4% 57% 9% 6% 11% 7% 9% 0.14% 1.30% 1.42%<br>Self Storage 450 3.4 1.68 55% 6% 41% 22% 4% 19% —% 8% —% —% 0.12%<br>Other 401 1.2 1.49 60% 1% 32% 30% 11% 22% 2% 2% 0.07% 1.28% 1.87%<br>Nursing Home 203 3.8 1.23 60% 1% 20% 27% 9% 21% 17% 5% 6.70% 20.89% 15.77%
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LOAN PORTFOLIO – COMMERCIAL REAL ESTATE MATURITIES BY YEAR (1)<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 22<br>$0.3<br>$1.1 $1.0<br>$1.8 $1.7 $1.5<br>$7.6<br>2%<br>7% 7%<br>12% 11% 10%<br>51%<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br> $-<br> $1.0<br> $2.0<br> $3.0<br> $4.0<br> $5.0<br> $6.0<br> $7.0<br> $8.0<br> $9.0<br>2023 2024 2025 2026 2027 2028 2029 & Beyond<br>$ in billions<br>91% of CRE loans mature in 2025 or later
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(1)&(2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>73%<br>14%<br>11%<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>2Q23 3Q23<br>HELOC MORTGAGE HELOC MORTGAGE<br>Wtd. Avg. Credit Score of Originations 776 770 770 760<br>Wtd. Avq. Credit Score of Portfolio 774 764 769 764<br>Wtd. Avg. LTV(2) 60% 73% 61% 73%<br>Wtd. Avg. DTI of Originations 33% 34% 31% 35%<br>Utilization Rate 38% N/A 37% N/A<br>23<br>Credit Indicator 2Q23 3Q23<br>NPL Ratio (Non-Accruals & 90+ DPD & Accruing) 0.33% 0.34%<br>Net Charge-Offs Ratio 0.00% 0.02%<br>30+ DPD Ratio (Accruing & Non-Accruing) 0.39% 0.40%<br>90+ DPD Ratio (Accruing and Non-Accruing) 0.11% 0.13%<br>• 37%(1) of HELOCs are first mortgage
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0.35% 0.36% 0.42%<br>0.54% 0.52%<br>—%<br> 0.25%<br> 0.50%<br> 0.75%<br> 1.00%<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Nonperforming Assets to Loans & OREO<br>1.78% 1.61% 1.57%<br>1.86% 1.94%<br>0.71% 0.54% 0.55%<br>0.71% 0.63%<br>1.07% 1.07% 1.02% 1.15% 1.31%<br>—%<br> 1.00%<br> 2.00%<br> 3.00%<br> 4.00%<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Criticized & Classified Asset Trends<br>Combined Special Mention / Assets Substandard / Assets<br>ASSET QUALITY METRICS<br>Dollars in millions 24<br>(0.02)%<br>0.01% 0.01%<br>0.04%<br>0.16%<br> (0.05)%<br> 0.05%<br> 0.15%<br> 0.25%<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Net Charge-Offs (Recoveries) to Loans<br>• $151 million in provision for credit losses vs.<br>$18 million in net charge-offs trailing four<br>quarters<br>• Increased ACL plus reserve for unfunded<br>commitments by 28 bps to 1.59% from 3Q22 to<br>3Q23
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Dollars in millions<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>LOSS ABSORPTION CAPACITY TREND<br>25<br>$23.9<br>$47.1<br>$33.1<br>$38.4<br>$32.7<br>$(1.3)<br>$0.9 $1.0<br>$3.3<br>$13.2<br> $(10)<br> $-<br> $10<br> $20<br> $30<br> $40<br> $50<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>$ in millions<br>Provision for Credit Losses & Net Charge-Offs (Recoveries)<br>Provision for Credit Losses Net Charge-Offs (Recoveries)<br>$324<br>$356<br>$371<br>$427 $448<br>$53<br>$67<br>$85<br>$63<br>$62<br>1.31%<br>1.40%<br>1.48%<br>1.56% 1.59%<br> 1.00%<br> 1.40%<br> 1.80%<br> 2.20%<br> $150<br> $200<br> $250<br> $300<br> $350<br> $400<br> $450<br> $500<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>$ in millions<br>Total ACL(1) plus Reserve for Unfunded Commitments<br>Total ACL Reserve for Unfunded Commitments % of Total Loans
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Capital
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CAPITAL RATIOS<br>2Q23 3Q23(2)<br>Tangible Common Equity(1) 7.6 % 7.5 %<br>Tier 1 Leverage 9.2 % 9.3 %<br>Tier 1 Common Equity 11.3 % 11.5 %<br>Tier 1 Risk-Based Capital 11.3 % 11.5 %<br>Total Risk-Based Capital 13.5 % 13.8 %<br>Bank CRE Concentration Ratio 242 % 240 %<br>Bank CDL Concentration Ratio 60 % 58 %<br>(1)&(2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 27
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13.76%<br>11.55%<br>—%<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>9.34%<br>7.64%<br>—%<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>11.47%<br>9.25%<br>—%<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. 28<br>7.48% 7.48%<br>—%<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
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Appendix
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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>30<br>• 1.4 million accounts, with an average deposit size of approximately $26,000, 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>• Uninsured deposits are 35% of total deposits; uninsured and uncollateralized deposits represent 30% of total deposits(2)<br>Primary Contingency Funding Sources at September 30, 2023<br>(in millions)<br>Total<br>Available Amount Used<br>Net<br>Availability<br>Cash and Cash Equivalents $ 1,329 $ — $ 1,329<br>Federal Home Loan Bank of Atlanta 7,767 2 7,765<br>Federal Reserve Discount Window 1,929 — 1,929<br>Brokered Deposits(1) 5,540 1,059 4,481<br>Unpledged Securities, at Par 4,239 — 4,239<br>Total Primary Liquidity Sources $ 20,804 $ 1,061 $ 19,743<br>Uninsured and Uncollateralized Deposits(2) 11,070<br>Coverage Ratio Uninsured and Uncollateralized Deposits 178%
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44%<br>28%<br>22% 5%<br>Municipal Bond Rating 1%<br>AAA<br>AA+<br>AA<br>AA-A+<br>Dollars in billions, unless otherwise noted; data as of September 30, 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>2.06%<br>2.29% 2.37% 2.35% 2.36%<br>1.00%<br>1.35%<br>1.70%<br>2.05%<br>2.40%<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Investment Securities Yield(2)<br>HIGH QUALITY INVESTMENT PORTFOLIO<br>73%<br>14%<br>12%<br>0.4%<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) $3.0B 4.9 $2.3B 5.6<br>Municipal $0.9B 8.8 — —<br>Treasury, Agency & SBA $0.8B 2.9 $0.3B 5.5<br>Corporates $0.03B 2.7 — —<br>Total $4.6B 5.3 $2.5B 5.6<br>31<br>Total Investment<br>Portfolio†<br>$7.2 Billion<br>• 94% of municipal portfolio is AA or higher rated<br>• ~$317 million in documented ESG investments and ~$141 million<br>CRA eligible investments(4)
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CURRENT & HISTORICAL 5 - QTR PERFORMANCE (1)<br>83% 86% 84% 82% 83%<br>17% 14% 16% 18% 17%<br>$438M $462M $453M $440M $429M<br>4.14%<br>2.5%<br>3.0%<br>3.5%<br>4.0%<br>4.5%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>3Q22 4Q22 1Q23 2Q23 3Q23<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>$73 $63 $71<br>$77 $73<br>0.64%<br>0.57%<br>0.66% 0.69%<br>0.64%<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> $140<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>$ in millions<br>Noninterest Income<br>Noninterest Income Noninterest Income / Avg. Assets<br>$365<br>$398 $382 $362 $356<br>3.58%<br>3.99% 3.93%<br>3.62% 3.50%<br>2.0%<br>2.5%<br>3.0%<br>3.5%<br>4.0%<br>4.5%<br> $200<br> $300<br> $400<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>$ in millions<br>Net Interest Margin (“NIM”, TE)<br>NIM, TE ($) NIM, TE (%)<br>53% 50% 48% 48% 51% 49% 54% 53% 54% 54%<br>—%<br> 15%<br> 30%<br> 45%<br> 60%<br> 75%<br> 90%<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Efficiency Ratio<br>Efficiency Ratio Adjusted Efficiency Ratio<br>32<br>(2)
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QTD Production ($mm) $1,062 $696 $521<br>Refinance 8% 4% 6%<br>Purchase 92% 96% 94%<br>53%<br>47%<br>3Q23<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 $2.5 million in 3Q 2023<br>compared to $4.4 million in 2Q 2023<br>• Secondary pipeline of $92 million at 3Q 2023, as<br>compared to $99 million at 2Q 2023<br>2.16%<br>1.36%<br>2.33%<br>2.00% 1.84%<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Mortgage Banking Income ($mm)<br>78%<br>22%<br>3Q22 Portfolio<br>Secondary<br>62%<br>38%<br>2Q23<br>3Q22 2Q23 3Q23<br>Secondary Market<br>Gain on Sale, net $ 3,501 $ 2,667 $ 1,878<br>Fair Value Change(1) (1,968) 192 (570)<br> Total Secondary Market Mortgage Income $ 1,533 $ 2,859 $ 1,308<br>MSR<br>Servicing Fee Income $ 4,170 $ 4,166 $ 4,120<br>Fair Value Change / Decay (3,441) (2,671) (2,950)<br> Total MSR-Related Income $ 729 $ 1,495 $ 1,170<br>Total Mortgage Banking Income $ 2,262 $ 4,354 $ 2,478
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Cumulative Consumer<br>R/E Loan Growth ($) $(12) $(98) $(264) $(486) $(625) $(712) $(727) $(653) $(535) $(18) $454 $952 $1,337 $1,752 $2,085<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 $415<br>$333<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% 6.75%<br>7.50%<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% 2.00%<br>1.84%<br> -%<br> 2.0%<br> 4.0%<br> 6.0%<br> 8.0%<br> $(300)<br> $(100)<br> $100<br> $300<br> $500<br> $700<br>1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23<br>$ in millions<br>Consumer R/E Loan Growth ($) 30-yr Fixed Mortgage Rate GOS Margin<br>RESIDENTIAL MORTGAGE PORTFOLIO<br>GAIN ON SALE (“GOS”) MARGIN AND INTEREST RATES<br>Dollars in millions<br>(1) & (2) For end note descriptions, see Earnings Presentation End Notes starting on slide 46. 34<br>(1)(2) (2)
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$(4.1) $(8.5) $(8.4) $(8.5) $(11.9)<br>$20.6<br>$16.8<br>$22.0<br>$27.7<br>$24.8<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> $(15)<br> $(10)<br> $(5)<br> $-<br> $5<br> $10<br> $15<br> $20<br> $25<br> $30<br> $35<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>$ 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>1,219 Financial Institution Clients<br>(1) For end note descriptions, see Earnings Presentation End Notes starting on slide 46.<br>Correspondent banking and capital<br>markets income, gross $ 20,552 $ 16,760 $ 21,956 $ 27,734 $ 24,808<br>Interest on centrally-cleared Variation<br>Margin ("VM")(1) (4,125) (8,451) (8,362) (8,547) (11,892)<br> Total Correspondent Banking and<br>Capital Markets Income $ 16,427 $ 8,309 $ 13,594 $ 19,187 $ 12,916
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DIGITAL TRENDS<br>36<br>67% 65%<br>33% 35%<br>—%<br> 20%<br> 40%<br> 60%<br> 80%<br> 100%<br>3Q22 3Q23<br>Branch Digital<br>Digital Deposits<br>$80M<br>$124M<br> $-<br> $20<br> $40<br> $60<br> $80<br> $100<br> $120<br> $140<br>3Q22 3Q23<br>$ in Millions<br>Zelle P2P Transactions<br>Digital Sales – Deposit Accounts Digital Sales – Loans *<br>77% 76%<br>23% 24%<br>—%<br> 20%<br> 40%<br> 60%<br> 80%<br> 100%<br>3Q22 3Q23<br>Branch Digital<br>84% 82%<br>16% 18%<br>—%<br> 20%<br> 40%<br> 60%<br> 80%<br> 100%<br>3Q22 3Q23<br>Branch Digital<br>403,423 414,971<br>—<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>3Q22 3Q23<br>Mobile App Users<br>38,330 41,226<br>—<br> 10,000<br> 20,000<br> 30,000<br> 40,000<br> 50,000<br> 60,000<br>3Q22 3Q23<br>Secure Messages & Chat<br>3%<br>55% Increase<br>Increase<br>8%<br>Increase<br> Consumer DDA and Savings ** Consumer Loans
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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>$147M<br>Increased deposits per branch 3.7x from 2009 to 3Q23<br>85 434 268 251<br>2009 …..……………..………..……....…………………………….. 3Q 2023<br>37
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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>2Q23 3Q23<br>Net income (GAAP) $ 123,447 $ 124,144<br>Plus:<br>Amortization of intangibles 7,028 6,616<br>Effective tax rate, excluding DTA write-off 22 % 21 %<br>Amortization of intangibles, net of tax 5,493 5,221<br>Net income plus after-tax amortization of intangibles (non-GAAP) $ 128,940 $ 129,365<br>Average shareholders' common equity $ 5,301,697 $ 5,328,912<br>Less:<br>Average intangible assets 2,029,747 2,022,810<br>Average tangible common equity $ 3,271,950 $ 3,306,102<br> Return on Average Tangible Common Equity (Non-GAAP) 15.8% 15.5%<br>PPNR Return on Average Assets<br>2Q23 3Q23<br>PPNR, Adjusted (Non-GAAP) $ 198,139 $ 190,177<br>Average assets 44,628,124 44,841,319<br>PPNR ROAA 1.78% 1.68%
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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>2Q23 3Q23<br>Net income (GAAP) $ 123,447 $ 124,144<br>Plus:<br>Merger, branch consolidation and severance related expense, net of tax 1,414 130<br>Adjusted Net Income (Non-GAAP) $ 124,861 $ 124,274<br>Adjusted EPS<br>2Q23 3Q23<br>Diluted weighted-average common shares 76,418 76,571<br>Adjusted net income (non-GAAP) $ 124,861 $ 124,274<br>Adjusted EPS, Diluted (Non-GAAP) $ 1.63 $ 1.62
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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>2Q23 3Q23<br>Adjusted net income (non-GAAP) $ 124,861 $ 124,274<br>Total average assets 44,628,124 44,841,319<br>Adjusted Return on Average Assets (Non-GAAP) 1.12% 1.10%<br>Adjusted Return on Average Tangible Common Equity<br>2Q23 3Q23<br>Adjusted net income (non-GAAP) $ 124,861 $ 124,274<br>Plus:<br>Amortization of intangibles, net of tax 5,493 5,221<br>Adjusted net income plus after-tax amortization of intangibles (non-GAAP) $ 130,354 $ 129,495<br>Average tangible common equity $ 3,271,950 $ 3,306,102<br>Adjusted Return on Average Tangible Common Equity (Non-GAAP) 15.98% 15.54%
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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>3Q22 4Q22 1Q23 2Q23 3Q23<br>Net interest income (GAAP) $ 362,334 $ 396,004 $ 381,263 $ 361,743 $ 355,371<br>Tax equivalent adjustments 2,345 2,397 1,020 698 646<br>Net interest income (tax equivalent) (Non-GAAP) $ 364,679 $ 398,401 $ 382,283 $ 362,441 $ 356,017<br>Average interest earning assets $ 40,451,174 $ 39,655,736 $ 39,409,340 $ 40,127,836 $ 40,376,380<br>Net Interest Margin - Tax Equivalent (Non-GAAP) 3.58% 3.99% 3.93% 3.62% 3.50%<br>Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP)<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Net interest income (GAAP) $ 362,334 $ 396,004 $ 381,263 $ 361,743 $ 355,371<br>Less:<br>Total accretion on acquired loans 9,550 7,350 7,398 5,481 4,053<br>Core Net Interest Margin excluding FMV & PPP Accretion (Non-GAAP) $ 352,784 $ 388,654 $ 373,865 $ 356,262 $ 351,318
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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>3Q22 4Q22 1Q23 2Q23 3Q23<br>SSB SSB SSB SSB SSB<br>Net interest income (GAAP) $ 362,334 $ 396,004 $ 381,263 $ 361,743 $ 355,371<br>Plus:<br>Noninterest income 73,053 63,392 71,355 77,214 72,848<br>Less:<br>Gain on sale of securities 30 — 45 — —<br>Total revenue, adjusted (non-GAAP) $ 435,357 $ 459,396 $ 452,573 $ 438,957 $ 428,219<br>Less:<br>Noninterest expense 240,433 229,499 240,505 242,626 238,206<br>PPNR (Non-GAAP) $ 194,924 $ 229,897 $ 212,068 $ 196,331 $ 190,013<br>Plus:<br>Merger, branch consolidation and severance related expense 13,679 1,542 9,412 1,808 164<br>Total adjustments $ 13,679 $ 1,542 $ 9,412 $ 1,808 $ 164<br>PPNR, Adjusted (Non-GAAP) $ 208,603 $ 231,439 $ 221,480 $ 198,139 $ 190,177<br>Weighted average common shares outstanding, diluted 76,182 76,327 76,389 76,418 76,571<br>PPNR, Adjusted per Weighted Avg. Common Shares Outstanding, Diluted (Non-GAAP) $ 2.74 $ 3.03 $ 2.90 $ 2.59 $ 2.48<br>Correspondent & Capital Markets Income<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>SSB SSB SSB SSB SSB<br>ARC revenues $ 5,102 $ (1,083) $ 3,684 $ 11,126 $ 4,546<br>FI revenues 9,201 6,238 6,916 5,055 5,692<br>Operational revenues 2,124 3,154 2,994 3,006 2,678<br>Total Correspondent & Capital Markets Income $ 16,427 $ 8,309 $ 13,594 $ 19,187 $ 12,916<br>PPNR, Adjusted & PPNR, Adjusted per Weighted Avg. Common Shares Oustanding, Diluted (Non-
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NON - GAAP RECONCILIATIONS – CURRENT & HISTORICAL: EFFICIENCY<br>RATIOS (UNAUDITED)<br>Dollars in thousands<br>43<br>3Q22 4Q22 1Q23 2Q23 3Q23<br>Noninterest expense (GAAP) $ 240,433 $ 229,499 $ 240,505 $ 242,626 $ 238,206<br>Less: Amortization of intangible assets 7,837 8,027 7,299 7,028 6,616<br>Adjusted noninterest expense (non-GAAP) $ 232,596 $ 221,472 $ 233,206 $ 235,598 $ 231,590<br>Net interest income (GAAP) $ 362,334 $ 396,004 $ 381,263 $ 361,743 $ 355,371<br>Tax Equivalent ("TE") adjustments 2,345 2,397 1,020 698 646<br>Net interest income, TE (non-GAAP) $ 364,679 $ 398,401 $ 382,283 $ 362,441 $ 356,017<br>Noninterest income (GAAP) $ 73,053 $ 63,392 $ 71,355 $ 77,214 $ 72,848<br>Less: Gain on sale of securities 30 — 45 — —<br>Adjusted noninterest income (non-GAAP) $ 73,023 $ 63,392 $ 71,310 $ 77,214 $ 72,848<br>Efficiency Ratio (Non-GAAP) 53% 48% 51% 54% 54%<br>Noninterest expense (GAAP) $ 240,433 $ 229,499 $ 240,505 $ 242,626 $ 238,206<br>Less:<br>Merger, branch consolidation and severance related expense 13,679 1,542 9,412 1,808 164<br>Amortization of intangible assets 7,837 8,027 7,299 7,028 6,616<br>Total adjustments $ 21,516 $ 9,569 $ 16,711 $ 8,836 $ 6,780<br>Adjusted noninterest expense (non-GAAP) $ 218,917 $ 219,930 $ 223,794 $ 233,790 $ 231,426<br>Adjusted Efficiency Ratio (Non-GAAP) 50% 48% 49% 53% 54%
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NON - GAAP RECONCILIATIONS – TANGIBLE COMMON EQUITY RATIO<br>Dollars in thousands<br>44<br>Tangible Common Equity ("TCE") Ratio<br>2Q23 3Q23<br>Tangible common equity (non-GAAP) $ 3,264,648 $ 3,212,787<br>Total assets (GAAP) 44,940,332 44,989,128<br>Less:<br>Intangible assets 2,025,362 2,018,200<br>Tangible asset (non-GAAP) $ 42,914,970 $ 42,970,928<br>TCE Ratio (Non-GAAP) 7.6% 7.5%
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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 September 30, 2023 are preliminary.<br>45<br>September 30, 2023<br>Tier 1 capital $ 4,089<br>Average Assets for leverage purposes 43,791<br>Tier 1 Leverage Ratio 9.34%<br>Tier 1 capital 4,089<br>Plus:<br>AOCI impact, net of tax (815)<br>Adjusted Tier 1 capital with AOCI impact 3,274<br>Average assets for leverage purposes 43,791<br>Plus:<br>Unrealized losses (currently excluded from leverage assets) (907)<br>Adjusted average assets for leverage purposes 42,884<br>Tier 1 Leverage Ratio with AOCI Impact (non-GAAP) 7.64%<br>Tier 1 Leverage Ratio with AOCI Impact<br>(non-GAAP)<br>September 30, 2023<br>CET 1 $ 4,089<br>Risk-weighted assets 35,654<br>CET 1 Risk-based Capital Ratio 11.47%<br>CET 1 4,089<br>Plus:<br>AOCI impact, net of tax (815)<br>Adjusted CET 1 with AOCI impact 3,274<br>Risk-weighted assets 35,654<br>Plus:<br>Adjustments for risk-weighted assets (253)<br>Adjusted risk-weighted assets 35,401<br>CET 1 Risk-based Capital Ratio with AOCI Impact (non-GAAP) 9.25%<br>CET 1 Risk-based Capital Ratio with AOCI Impact<br>(non-GAAP)<br>September 30, 2023<br>Total Risk-based Capital $ 4,905<br>Risk-weighted Assets 35,654<br>Total Risk-based Capital Ratio 13.76%<br>Total Risk-based Capital 4,905<br>Plus:<br>AOCI impact, net of tax (815)<br>Adjusted total risk-based capital with AOCI impact 4,090<br>Risk-weighted assets 35,654<br>Plus:<br>Adjustments for risk-weighted assets (253)<br>Adjusted risk-weighted assets 35,401<br>Total Risk-based Capital Ratio with AOCI Impact (non-GAAP) 11.55%<br>Total Risk-based Capital Ratio with AOCI Impact<br>(non-GAAP)
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EARNINGS PRESENTATION END NOTES<br>46<br>Slide 5 End Notes<br>• Loans and deposits as of September 30, 2023; excludes $2.0B of loans and $3.5B of deposits from national lines of business and brokered deposits.<br>• Country GDP as of 2022; State GDP as of 1Q23<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 - 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; Core net interest income excluding loan accretion and net deferred fees on PPP is also a non-GAAP<br>financial measure; Adjusted efficiency ratio is calculated by taking the noninterest expense excluding merger, branch consolidation and severance related expense and amortization of intangible assets -<br>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 -<br>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.
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EARNINGS PRESENTATION END NOTES<br>47<br>Slide 15 End Notes<br>(1) Excludes loans held for sale and PPP loans.<br>Slide 16 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 17 End Notes<br>† Core deposits defined as non-time deposits<br>(1) Source: S&P Global Market Intelligence; 3Q23 MRQs available as of October 25, 2023; Peers as disclosed in the most recent SSB proxy statement.<br>Slide 20 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 information from the Company’s December 31, 2022 stress test using commitment balances, totaling approximately $6 billion; excludes loans below $1.5 million, unless part of a<br>larger relationship; Weighted average LTV as of September 30, 2023<br>Slide 21 End Notes<br>(1) Includes loan types representing 2% or more of investor CRE portfolio; based on the total portfolio of $8.7 billion, excluding 1-4 family rental properties and agricultural loans.<br>(2) Weighted average DSC information from the Company’s December 31, 2022 stress test using commitment balances, totaling approximately $6 billion; excludes loans below $1.5 million, unless part of a<br>larger relationship; Weighted average LTV as of September 30, 2023<br>(3) Represents % of each loan type balance.<br>Slide 22 End Notes<br>(1) Including agricultural and 1-4 family rental properties loans<br>Slide 23 End Notes<br>(1) By net book balance<br>(2) LTV calculated using most recent appraisal and based on loan amount<br>Slide 25 End Notes<br>(1) Unamortized discount on acquired loans was $55 million, $59 million, $65 million, $72 million, and $80 million for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31,<br>2022, and September 30, 2022, respectively.<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>(2) Preliminary
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EARNINGS PRESENTATION END NOTES<br>48<br>Slide 28 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 September 30, 2023 in Tier 1,<br>CET 1 and Total Risk-based Capital, average assets for leverage purposes and risk-weighted assets. See non-GAAP reconciliations in the Appendix.<br>Slide 30 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 September 30, 2023<br>Slide 31 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 September 30, 2023.<br>(4) Based on current par value<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.
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