South State Corporation releases second quarter earnings
July 22, 2016
South State Corporation (NASDAQ: SSB) released its unaudited results of operations and other financial information for the three-month and six-month period ended June 30, 2016. Highlights of the second quarter 2016 include the following:
Highlights of the second quarter 2016 include the following:
- Net income was $24.5 million for the 2Q 2016 equal to the 1Q 2016, while net operating earnings improved by $3.5 million to $28.5 million from 1Q 2016 of $25.0 million, a 13.8% increase
- Earnings per share (EPS) – diluted was $1.01 for 1Q and 2Q of 2016 compared to $1.03 in 2Q 2015, a 1.9% decrease;
- Operating earnings per share – diluted was $1.18 for 2Q 2016 compared to $1.04 for 1Q 2016 and $1.09 in 2Q 2015, a 8.3% increase;
- Increased dividend paid to common shareholders by 25.0%, or $0.06, since June 30, 2015
- Net loan growth (non-acquired loans exceeded acquired loan runoff) during 2Q 2016 was $253.1 million, or 16.5% annualized
- Non-acquired loan growth totaled $344.2 million or 31.0% annualized growth; which
- Outpaced acquired loan runoff of $91.1 million
- Performance ratios 2Q 2016 to 1Q 2016
- Return on average assets was 1.13% compared to 1.15%
- Operating return on average assets improved to 1.32% from 1.18%
- Return on average tangible equity was 14.59% compared to 15.04%
- Operating return on average tangible equity improved to 16.85% from 15.36%
- Efficiency ratio was 64.54% compared to 64.07%
- Operating efficiency ratio improved to 60.81% from 63.22% (excluding branch consolidation expenses and the charge for the early termination of the FDIC loss share agreements)
- Balance sheet 2Q 2016
- Cash and cash equivalents decreased by $215.4 million with growth in loans
- Other real estate owned (“OREO”) decreased $3.5 million to $22.4 million, including the disposition of 45 properties during the second quarter of 2016
- Early termination of loss share agreements with the FDIC during the 2Q 2016
- Noninterest bearing deposits increased by $96.6 million, or 19.2% annualized
- Shareholders’ equity increased $22.3 million to $1.1 billion
- Equity to assets improved to 12.66% from 12.48%
- Tangible equity to tangible assets improved to 8.66% from 8.43%
- Asset quality improvement from 1Q 2016
- Nonperforming assets (NPAs) declined by 8.0%, or $4.0 million, to $45.9 million
- NPAs to total assets improved to 0.53% from 0.58%
- Net charge offs on non-acquired loans were 0.06% in 2Q 2106 down from 0.09%
- Net charge offs on acquired non-credit impaired loans decreased to 0.07% in 2Q 2016 compared to 0.08%
- Coverage ratio of ALLL on non-acquired non-performing loans improved to 201.1% from 182.6%
Quarterly Cash Dividend
The Board of Directors of South State Corporation has declared a quarterly cash dividend of $0.31 per share payable on its common stock. This per share amount is $0.01 per share, or 3.3% higher than the dividend paid in the immediately preceding quarter and is $0.06 per share, or 24.0%, higher than a year ago. The dividend will be payable on August 19, 2016 to shareholders of record as of August 12, 2016.
