South State Corp. (SSB) Tops Q3 EPS by 35c

South State Corp. (NASDAQ: SSB) reported Q3 EPS of $1.58, $0.35 better than the analyst estimate of $1.23.

Highlights of the third quarter included:

• Return on Average Equity of 8.3%.
• Return on Average Tangible Common Equity of 14.7% (Non-GAAP); Adjusted Return on Average Tangible Common Equity of 17.1% (Non-GAAP).
• Return on Average Assets (“ROAA”) of 1.00%, and Adjusted ROAA of 1.18% (Non-GAAP).
• Third quarter of 2020 Pre-Provision Net Revenue (“PPNR ”) was $170 million, or 1.79% PPNR ROAA. This compares to the second quarter of 2020, where on a combined historical basis* (as if the companies had been merged for the full quarter, Non-GAAP), PPNR of $157 million, or 1.68% PPNR ROAA. The second quarter’s results only include the operations of CSFL for the final 23 days of the quarter.
• Book value per share of $64.34 increased by $0.99 per share from 2Q 2020.
• Tangible book value (“TBV”) per share of $39.83, up $1.50 from 2Q 2020 (Non-GAAP).
• Record quarterly revenue of $385 million (compared to actual prior period and combined historical basis).
• Net interest margin, declined by 2 basis points to 3.22% during 3Q 2020 from 2Q 2020.
• Significant allowance for credit losses and credit marks on the balance sheet representing 2.58% of total loans (excluding PPP loans).
• Net charge-offs of $594,000, or 0.01% annualized.
• As of 10/23/2020, loan deferrals totaled $452.4million, or 1.98% of the total loan portfolio, excluding PPP loans and held for sale loans.

“After closing our merger late in the second quarter, we are pleased with our first full quarter of operations as a combined company,” said John C. Corbett, Chief Executive Officer. “Our fee businesses continue to perform well, leading us to another record quarter of revenue. While the current environment includes challenges and uncertainties, we look forward to the future with great optimism.”

Robert R. Hill, Jr., Executive Chairman added, “The CenterState and South State partnership is about the long-term but you can clearly see the progress being made in the short-term. Progress with technology, products, efficiency, and talent all have us uniquely positioned. We are off to a solid start.”

For earnings history and earnings-related data on South State Corp. (SSB) click here.

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