South State Corporation Reports Second Quarter Operating EPS of $1.09; Increases Quarterly Cash Dividend
August 4, 2015
COLUMBIA, SC —South State Corporation released its unaudited results of operations and other financial information for the three-month and six-month period ended June 30, 2015. Highlights of the second quarter 2015 include the following:
- Operating earnings improved by $2.4 million to $26.3 million from 1Q 2015, a 10.1% increase
- Earnings per share (EPS) – diluted was $1.03 compared to $0.99 in 1Q 2015, a 4.0% increase; and
- $0.74 in 2Q 2014, a 39.2% increase
- Increased dividend paid to common shareholders by 20.0%; or $0.04 per share since 2Q 2014
- Net income available to the common shareholder of $24.9 million improved by 38.6% from 2Q 2014 of $17.9 million
- Net loan growth (non-acquired loans exceeded acquired loan runoff) during second quarter was $83.8 million or 5.9% annualized
- Non-acquired loan growth totaled $202.0 million or 22.6% annualized growth; which
- Outpaced acquired loan runoff of $118.2 million
- Performance ratio improvement 2Q 2015 to 1Q 2015
- Operating return on average assets improved to 1.32% from 1.23%
- Operating return on average tangible equity improved to 16.90% from 16.21%
- Efficiency ratio improved to 63.19% from 65.05%
- Operating efficiency ratio improved to 61.22% from 65.05% (excludes merger and conversion expenses)
- Balance sheet and tangible book value improved from 1Q 2015
- OREO decreased $1.1 million to $35.0 million, including the disposition of 58 properties during the quarter
- FDIC receivable declined to $11.0 million from $16.7 million at end of 1Q 2015
- Noninterest bearing deposits increased by $87.7 million or 20.0% annualized
- Shareholders’ equity increased $16.2 million to $1.024 billion
- Tangible equity to tangible assets improved to 8.56% from 8.39%
- Asset quality improvement from 1Q 2015
- Nonperforming assets (NPAs) declined by 8.7%, or $6.2 million, to $65.5 million
- NPAs to total assets improved to 0.81% from 0.89%
- Net charge offs (recoveries) on non-acquired loans were 0.12% in 2Q 2105 up from net recoveries of (0.01%)
- Net charge offs on acquired non-credit impaired loans decreased to 0.18% in 2Q 2015 compared to 0.56%
- Coverage ratio of ALLL on non-acquired non-performing loans improved to 141.0% from 121.6%
Quarterly Cash Dividend
The Board of Directors of South State Corporation has declared a quarterly cash dividend of $0.25 per share payable on its common stock. This per share amount is $0.01 per share, or 4.2% higher than the dividend paid in the immediately preceding quarter and is $0.04 per share, or 19.0%, higher than a year ago. The dividend will be payable on August 21, 2015 to shareholders of record as of August 14, 2015.
Branch Initiatives – Update
The consolidation (12) or sale (2) of 14 branches and ATM locations in 2015 during the second, third and fourth quarters is summarized below:
- Consolidated eight of the twelve locations during the second quarter (May and June);
- Expect to close or sell the additional six branches during the second half of 2015.
Received all regulatory approvals and anticipate closing on or around August 21, 2015 the purchase and assumption of 13 former Bank of America branches (12 in South Carolina and 1 in Georgia).
South State Corporation
South State Corporation is the largest bank holding company headquartered in South Carolina. Founded over 80 years ago in 1933, the company’s primary subsidiary, South State Bank, serves the financial needs of its local communities in 19 South Carolina counties, 12 Georgia counties and 4 North Carolina counties. The bank also operates Minis & Co., Inc. and First Southeast 401K Fiduciaries, Inc., both registered investment advisors; and First Southeast Investor Services, Inc., a limited purpose broker-dealer. South State Corporation has assets of approximately $8.1 billion and its stock is traded under the symbol SSB on the NASDAQ Global Select Market. More information can be found at www.SouthStateBank.com.
