South State (SSB) - 2024 Q4 - Annual Results

Financial Performance - SouthState reported net income of $144.2 million for Q4 2024, representing a 9% increase in PPNR over Q3 2024, driven by 6% revenue growth[2] - Diluted earnings per share (EPS) for Q4 2024 were $1.87, with adjusted diluted EPS (non-GAAP) of $1.93[4] - Net income for Q4 2024 reached $144.178 million, up from $143.179 million in Q3 2024, representing a 0.7% increase[20] - Adjusted net income for the twelve months ended December 31, 2024, was $553,079 thousand, compared to $524,653 thousand for the same period in 2023, reflecting a growth of 5.8%[22] - Earnings per common share - Basic (GAAP) for the three months ended September 30, 2024, was $1.88, up from $1.74 in the previous quarter[22] Revenue and Income Growth - Total noninterest income for Q4 2024 was $80,545,000, an increase of 7.5% compared to $74,934,000 in Q3 2024 and up from $65,489,000 in Q4 2023[10] - Mortgage banking income for Q4 2024 was $4,777,000, significantly higher than $3,189,000 in Q3 2024, representing a growth of 49.8%[10] - Trust and investment services income increased to $12,414,000 in Q4 2024, compared to $11,578,000 in Q3 2024, a rise of 7.2%[10] - The total correspondent banking and capital markets income for Q4 2024 was $13,555,000, up from $9,893,000 in Q3 2024, reflecting a growth of 37.3%[10] Asset and Liability Management - Total assets increased to $46.38 billion as of December 31, 2024, up from $44.90 billion a year earlier, representing a growth of 3.3%[7] - Total deposits rose to $38.06 billion, an increase of 2.3% from $37.05 billion in the previous year[7] - Loans, net, reached $33.44 billion, reflecting an increase from $31.93 billion year-over-year, marking a growth of 4.7%[7] - Interest-bearing liabilities totaled $28.72 billion, with a total interest expense of $179.03 million, resulting in an overall cost of funds of 1.81%[8] Efficiency and Capital Ratios - The efficiency ratio improved to 56%, with an adjusted efficiency ratio (non-GAAP) of 54%[4] - Return on average common equity was 9.7%, with an adjusted return on average tangible common equity (non-GAAP) of 15.6%[4] - Total risk-based capital ratio stood at 15.0%, indicating a strong capital position[6] - The adjusted efficiency ratio for the twelve months ended December 31, 2024, was 54.42%, indicating operational efficiency improvements[22] Credit Quality and Losses - The allowance for credit losses was $465.28 million, slightly down from $456.57 million a year ago[7] - Nonperforming assets totaled $213,354,000, an increase from $190,960,000 in Q3 2024, reflecting a rise of 11.5%[14] - The allowance for credit losses as a percentage of loans was 1.37% as of December 31, 2024, slightly down from 1.39% in Q3 2024[14] - The net charge-offs as a percentage of average loans (annualized) was 0.06% for Q4 2024, a slight decrease from 0.07% in Q3 2024[14] Merger and Expansion - The company completed the merger with Independent Bank Group on January 1, 2025, enhancing its market presence[3] - The company plans to continue expanding in high-growth markets following the successful merger[2] - Risks related to the merger and integration of SouthState and Independent include potential delays and cost overruns, affecting expected cost savings and revenue synergies[2] Future Outlook and Risks - The company anticipates potential economic volatility risks, including inflation and credit market deterioration, which could impact future performance[2] - The company faces competition risks that may pressure deposit and loan pricing, impacting net interest margins[2] - Regulatory changes may require higher capital levels and could affect the company's financial performance and compliance costs[2] - The company does not undertake any obligation to update forward-looking statements, which are subject to significant risks and uncertainties[3] Dividend and Shareholder Returns - The company declared a quarterly cash dividend of $0.54 per share, payable on February 14, 2025[4] - The dividend payout ratio is calculated by dividing total dividends paid during the period by total net income, reflecting the company's commitment to returning value to shareholders[1] Conference and Communication - The conference call to discuss Q4 results is scheduled for January 24, 2025, at 9:00 a.m. Eastern Time[16]