EX-99.1 2 ssb-20220427xex99d1.htm EX-99.1
Exhibit 99.1

| Annual Shareholders’ MeetingWednesday, April 27, 2022 Exhibit 99.1

| DISCLAIMER2Statementsincludedinthiscommunication,whicharenothistoricalinnatureareintendedtobe,andareherebyidentifiedas,forward-lookingstatementsforpurposesofthesafeharborprovidedbySection27AoftheSecuritiesActof1933andSection21EoftheSecuritiesExchangeActof1934.Forward-lookingstatementsarebasedon,amongotherthings,management’sbeliefs,assumptions,currentexpectations,estimatesandprojectionsaboutthefinancialservicesindustry,theeconomyandSouthState.Wordsandphrasessuchas“may,”“approximately,”“continue,”“should,”“expects,”“projects,”“anticipates,”“islikely,”“lookahead,”“lookforward,”“believes,”“will,”“intends,”“estimates,”“strategy,”“plan,”“could,”“potential,”“possible”andvariationsofsuchwordsandsimilarexpressionsareintendedtoidentifysuchforward-lookingstatements. SouthStatecautionsreadersthatforward-lookingstatementsaresubjecttocertainrisks,uncertaintiesandassumptionsthataredifficulttopredictwithregardto,amongotherthings,timing,extent,likelihoodanddegreeofoccurrence,whichcouldcauseactualresultstodiffermateriallyfromanticipatedresults.Suchrisks,uncertaintiesandassumptions,include,amongothers,thefollowing:(1)economicdownturnrisk,potentiallyresultingindeteriorationinthecreditmarkets,inflation,greaterthanexpectednoninterestexpenses,excessiveloanlossesandothernegativeconsequences,whichriskscouldbeexacerbatedbypotentialcontinuednegativeeconomicdevelopmentsresultingfromtheCovid19pandemic,orfromfederalspendingcutsand/oroneormorefederalbudget-relatedimpassesoractions;(2)interestrateriskprimarilyresultingfromtheinterestrateenvironment,risinginterestrates,andtheirimpactontheBank’searnings,includingfromthecorrespondentandmortgagedivisions,housingdemand,themarketvalueofthebank’sloanandsecuritiesportfolios,andthemarketvalueofSouthState’sequity;(3)risksrelatedtothemergerandintegrationofSouthStateandCSFLincluding,amongothers,(i)theriskthatthecostsavingsandanyrevenuesynergiesfromthemergermaynotbefullyrealizedormaytakelongerthananticipatedtoberealized,(ii)theriskthatthepartiesareunabletosuccessfullyintegrateeachparty’sbusinessesintotheother’sbusinesses,(iii)theamountofthecosts,fees,expensesandchargesrelatedtothemerger,and(iv)reputationalriskandthereactionofeachcompany'scustomers,suppliers,employeesorotherbusinesspartnerstothemerger;(4)risksrelatedtothemergerandintegrationofSouthStateandAtlanticCapitalincluding,amongothers,(i)theriskthatthecostsavingsandanyrevenuesynergiesfromthemergermaynotbefullyrealizedormaytakelongerthananticipatedtoberealized,(ii)theriskthattheintegrationofAtlanticCapital’soperationsintoSouthState’soperationswillbemateriallydelayedorwillbemorecostlyordifficultthanexpectedorthatthepartiesareotherwiseunabletosuccessfullyintegrateAtlanticCapital’sbusinessesintoSouthState’sbusinesses,(iii)theamountofthecosts,fees,expensesandchargesrelatedtothemerger,and(iv)reputationalriskandthereactionofeachcompany'scustomers,suppliers,employeesorotherbusinesspartnerstothemerger;(5)risksrelatingtothecontinuedimpactof theCovid19pandemicontheCompany,includingpossibleimpacttotheCompanyanditsemployeesfromcontactingCovid19,andtoefficienciesandthecontrolenvironmentduetothechangingworkenvironmentandtoourresultsofoperationsduetogovernmentstimulusandotherinterventionstomitigatetheimpactofthepandemic;(6)theimpactofincreasingdigitizationofthebankingindustryandmovementofcustomerstoon-lineplatforms,andthepossibleimpactontheBank’sresultsofoperations,customerbase,expenses,suppliersandoperations;(7)controlsandproceduresrisk,includingthepotentialfailureorcircumventionofourcontrolsandproceduresorfailuretocomplywithregulationsrelatedtocontrolsandprocedures;(8)potentialdeteriorationinrealestatevalues;(9)theimpactofcompetitionwithotherfinancialinstitutions,includingpricingpressures(includingthoseresultingfromtheCARESAct)andtheresultingimpact,includingasaresultofcompressiontonetinterestmargin;(10)risksrelatingtotheabilitytoretainourcultureandattractandretainqualifiedpeople;(11)creditrisksassociatedwithanobligor’sfailuretomeetthetermsofanycontractwiththebankorotherwisefailtoperformasagreedunderthetermsofanyloan-relateddocument;(12)risksrelatedtotheabilityofthecompanytopursueitsstrategicplanswhichdependuponcertaingrowthgoalsinourlinesofbusiness;(13)liquidityriskaffectingtheBank’sabilitytomeetitsobligationswhentheycomedue;(14)risksassociatedwithananticipatedincreaseinSouthState’sinvestmentsecuritiesportfolio,includingrisksassociatedwithacquiringandholdinginvestmentsecuritiesorpotentiallydeterminingthattheamountofinvestmentsecuritiesSouthStatedesirestoacquirearenotavailableontermsacceptabletoSouthState;(15)priceriskfocusingonchangesinmarketfactorsthatmayaffectthevalueoftradedinstrumentsin“mark-to-market”portfolios;(16)transactionriskarisingfromproblemswithserviceorproductdelivery;(17)complianceriskinvolvingrisktoearningsorcapitalresultingfromviolationsofornonconformancewithlaws,rules,regulations,prescribedpractices,orethicalstandards;(18)regulatorychangeriskresultingfromnewlaws,rules,regulations,accountingprinciples,proscribedpractices orethicalstandards,including,withoutlimitation,thepossibilitythatregulatoryagenciesmayrequirehigherlevelsofcapitalabovethecurrentregulatory-mandatedminimumsandincludingtheimpactoftheCARESAct,theConsumerFinancialProtectionBureauregulations,andthepossibilityofchangesinaccountingstandards,policies,principlesandpractices,includingchangesinaccountingprinciplesrelatingtoloanlossrecognition(CECL);(19)strategicriskresultingfromadversebusinessdecisionsorimproperimplementationofbusinessdecisions;(20)reputationriskthatadverselyaffectsearningsorcapitalarisingfromnegativepublicopinion;(21)cybersecurityriskrelatedtothedependenceofSouthStateoninternalcomputersystemsandthetechnologyofoutsideserviceproviders,aswellasthepotentialimpactsofinternalorexternalsecuritybreaches,whichmaysubjectthecompanytopotentialbusinessdisruptionsorfinanciallossesresultingfromdeliberateattacksorunintentionalevents;(22)reputationalandoperationalrisksassociatedwithenvironment,socialandgovernance(ESG)matters,includingtheimpactofrecentlyissuedproposedregulatoryguidanceandregulationrelatingtoclimatechange;(23)greaterthanexpectednoninterestexpenses;(24)excessiveloanlosses;(25)potentialdepositattrition,higherthanexpectedcosts,customerlossandbusinessdisruptionassociatedwiththeAtlanticCapitalintegration,andpotentialdifficultiesinmaintainingrelationshipswithkeypersonnel;(26)reputationalriskandpossiblehigherthanestimatedreducedrevenuefromannouncedchangesintheBank’sconsumeroverdraftprograms;(27)therisksoffluctuationsinmarketpricesforSouthStatecommonstockthatmayormaynotreflecteconomicconditionorperformanceofSouthState;(28)thepaymentofdividendsonSouthStatecommonstock,whichissubjecttolegalandregulatorylimitationsaswellasthediscretionoftheboardofdirectorsofSouthState,SouthState’sperformanceandotherfactors;(29)ownershipdilutionriskassociatedwithpotentialacquisitionsinwhichSouthState’sstockmaybeissuedasconsiderationforanacquiredcompany;(30)operational,technological,cultural,regulatory,legal,creditandotherrisksassociatedwiththeexploration,consummationandintegrationofpotentialfutureacquisitions,whetherinvolvingstockorcashconsideration;(31)majorcatastrophessuchashurricanes,tornados,earthquakes,floodsorothernaturalorhumandisasters,includinginfectiousdiseaseoutbreaks,suchastheongoingCovid19pandemic,andtherelateddisruption tolocal,regionalandglobaleconomicactivityandfinancialmarkets,andtheimpactthatanyoftheforegoingmayhaveonSouthStateanditscustomersandotherconstituencies;(32)terroristactivitiesriskthatresultsinlossofconsumerconfidenceandeconomicdisruptions;and(33)otherfactorsthatmayaffectfutureresultsofSouthState,asdisclosedinSouthState’sAnnualReportonForm10-K,QuarterlyReportsonForm10-Q,andCurrentReportsonForm8-K,filedbySouthStatewiththeU.S.SecuritiesandExchangeCommission(“SEC”)andavailableontheSEC’swebsiteathttp://www.sec.gov,anyofwhichcouldcauseactualresultstodiffermateriallyfromfutureresultsexpressed,impliedorotherwiseanticipatedbysuchforward-lookingstatements. Allforward-lookingstatementsspeakonlyasofthedatetheyaremadeandarebasedoninformationavailableatthattime.SouthStatedoesnotundertakeanyobligationtoupdateorotherwisereviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureevents,orotherwise,exceptasrequiredbyfederalsecuritieslaws.Asforward-lookingstatementsinvolvesignificantrisksanduncertainties,cautionshouldbeexercisedagainstplacingunduerelianceonsuchstatements.

| $35Billion in deposits $24Billion in loans $42Billion in assets $5.7Billion market cap(1)FinancialmetricsasofDecember31,2021;marketcapasofJanuary21,2022;AtlanticCapitalBancshares,Inc.(“ACBI”)mergerexcludedSouthState CorporationOverview of Franchise(1)3 (281) 7Greenwich Excellence Awards 2021 #1 in Florida#2 in Georgia #3 in South Carolina Top 50Forbes 100 Best Banks in America 2021

| Local MarketLeadershipOur business model supports the unique character of the communities we serve and encourages decision making by the banker that is closest to the customer.Long-TermHorizonWe think and act like owners and measure success over entire economic cycles. We prioritize soundness before short-term profitability and growth.RemarkableExperiencesWe will make our customers’ lives better by anticipating their needs and responding with a sense of urgency. Each of us has the freedom, authority and responsibility to do the right thing for our customers.Meaningful and LastingRelationshipsWe communicate with candor and transparency. The relationship is more valuable than the transaction.Greater PurposeWe enable our team members to pursue their ultimate purpose in life—their personal faith, their family, their service to community.The WHATThe HOW Guiding PrinciplesCore Values Leadership The WHY To invest in the entrepreneurial spirit, pursue excellence and inspire a greater purpose.4

| UNPRECEDENTED FED RESPONSE TO COVID –$5T INCREASE IN 2 YEARS5 From the Fed’s founding in 1913, it took 95 years to grow its balance sheet to $1 trillion, reaching that level in 2008. During the two-year period in 2020 and 2021 related to COVID response, the Fed grew its balance sheet by another $5 trillion. Simply put, in just two years the Fed grew its balance sheet about five times more than it did in its first 95 years of existence.Sept. 2008: $1T Dec. 2019: $4T April 2022: $9T +$5 Trillion

| FED RESPONSE LEADS TO SIGNIFICANT DEPOSIT GROWTH6 $25.4B$30.7B$35.1B $- $50,000,000.0B $100,000,000.0B $150,000,000.0B $200,000,000.0B $250,000,000.0B $300,000,000.0B $350,000,000.0B $20 $25 $30 $35 $402019*20202021$ in billionsDeposits up nearly $10 billion since pandemic*Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable.

| 7 Source: U.S. Census BureauPANDEMIC ACCELERATES POPULATION MIGRATION TO THE SOUTH

| DECADE OF HOUSING UNDERSUPPLY PROVIDES ECONOMIC TAILWIND8 Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development 1.5 million annualized pace is the long-run equilibrium needed to meet long-term demand and shrink the existing deficit of 3.8 million units

| 2021 LOAN PRODUCTION HIGHER THAN PRE-PANDEMIC LEVELS(1) (1)ExcludesloansheldforsaleandPPP;loanproductionindicatescommittedbalancetotal*Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable.**1Q19loanproductionexcludesproductionfromNationalBankofCommerce(“NBC”);NationalCommerceCorporation,theholdingcompanyofNBC,wasacquiredbyCenterStatein2Q20199 $7.1B**$6.6B$10.0B$5$6$7$8$9$10$112019*2020*2021$ in billions

| $22.1 $23.4 $281.1 ($152.4)-$200-$150-$100-$50$0$50$100$150$200$250$3002018*2019*2020*2021$ in millionsProvision (Recovery) for Credit LossesASSET QUALITY IMPROVED DESPITE COVID RECESSION *Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable.10 $6.3$15.6$5.0$3.1$0$50$100$150$200$250$3002018*2019*2020*2021$ in millionsNet Charge-Offs

| ADJUSTED EARNINGS PER SHARE, DILUTED11 $4.85$5.50$5.63$5.12$7.58 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.0020172018201920202021 Adjustedfiguresaboveexcludetheimpactofsecuritiesgainsorlosses,mergerandbranchconsolidationrelatedexpense,FHLBAdvancesprepaymentpenalty,initialprovisionforcreditlossesonnon-PCDloansandunfundedcommitments,incometaxbenefitrelatedtothecarrybackoftaxlossesundertheCARESAct,swapterminationexpense,pensionplanterminationexpense,extinguishmentofdebtcostandanadjustmentforthedeferredtaxassetrevaluation-SeereconciliationofGAAPtoNon-GAAPmeasuresinAppendix11

| *Thecombinedhistoricalinformationreferredtointhispresentationasthe“CombinedBusinessBasis”presentedisbasedonthereportedGAAPresultsoftheCompanyandCenterStatefortheapplicableperiodswithoutadjustmentsandtheinformationincludedinthisreleasehasnotbeenpreparedinaccordancewithArticle11ofRegulationS-X,andthereforedoesnotreflectanyoftheproformaadjustmentsthatwouldberequiredthereby.AllCombinedBusinessBasisfinancialinformationshouldbereviewedinconnectionthehistoricalinformationoftheCompanyandCenterState,asapplicable. $64.9 $112.9 $110.0 $50 $60 $70 $80 $90 $100 $110 $1202019*2020*2021$ in millionsCorrespondent Revenue Provides capital markets hedging (ARC), fixed income sales, international, clearing and other services to over 1,000 financial institutions across the country CORRESPONDENT BANKING –2021 REVENUE INCREASED 70% FROM PRE-PANDEMIC LEVELS1,060 Financial Institution Clients12

| * The combined historical information referred to in this presentation as the “Combined Business Basis” presented is basedonthe reported GAAP results of the Company and CenterState for the 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 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 applicable.13 $49 $142 $65 $- $40 $80 $1202019*2020*2021$ in millionsMortgage Banking Revenue2021 MORTGAGE PRODUCTION INCREASED 71% FROM PRE-PANDEMIC LEVELS $3.17B$5.47B$5.42B $- $1 $2 $3 $4 $5 $62019*2020*2021$ in billionsMortgage Production

| Note: shows all branch, partial, and whole bank acquisitions by CenterState, South State, or one of their acquisition targetssince 1/1/09Source: S&P Global Market IntelligenceAssets and label position as of announcement; numbers in bubbles denote assets acquired(1)Denotes direct acquisition for CenterState for which the target did not have any previous M&A history(2)Pro forma for recent acquisition of Atlantic Capital Bancshares, Inc., excluding purchase accounting adjustmentsLEADING SOUTHEAST CONSOLIDATOR APPROACHING $50B ASSET SIZE Toronto Dominion $18.6B $4.2BNational Commerce $0.59B $0.23B $0.24B $0.44B $0.15B $0.33B $0.08B $0.29B $1.6BCharter Financial $0.16B $0.38B $0.30B $0.36B $0.08B $2.2BHBCF $0.32B $0.24B $0.26B $0.22B $0.24B $0.16B $0.17B $0.05B $0.10B $0.9BSunshine $0.32B $0.06B $0.25B $1.1BFirst Southern $0.60B $0.15B $0.88B $0.61BGateway FinancialPlatinum BankHometown of Homestead $0.48BCommunity Bank of South Florida $0.56BGulfstream Bancshares $0.40BFirst Guaranty of Jacksonville $0.08BCentral Florida State BankFederal Trust Corporation $0.16BIndependent National $0.07BCommunity National Bank at Bartow $0.17BOlde Cypress Community Bank $0.22BOcala National Bank (1) $1.1BCommunity Bank & Trust $1.1BHabersham Bank $1.1BBankMeridian $0.55BPeoples Bancorporation $0.90BSavannah Bancorp $0.25B $3.2BFirst Financial Holdings $0.49B $0.47B $0.01B $0.01B $1.8BSoutheastern Bank Financial Corporation $3.2BPark Sterling Corporation $0.62B $0.33B $1.0B $0.64B $0.01B $0.33B $0.11B $0.34BCommonwealth Savingshares $0.44BBank of America Corporation $16.6B $46BQ4 ‘21 $3.8BAtlantic Capital Bancshares, Inc. $1.1B 2009201020112012201320142015201620172018201920202021 (2)14 Chart LegendDenotes direct acquisition by CenterState or South StateDenotes acquisition by CenterState or South State targetDenotes branch acquisitionsDenotes FDIC as selling party

| M&A ACCELERATES TRANSITION FROM “BRICKS” TO “CLICKS” 85 BranchesAverage Size $40M 420 Branches Acquired Plus12 DeNovo Branches 236 Branches Consolidated or Sold 281 BranchesAverage Size $125M ~213% growth in deposits per branch 854322362812009 …..……………..………..……....…………………………….. 202115

| INVESTMENTS IN TECHNOLOGY TO TRANSFORM THE CUSTOMER EXPERIENCE162020-2022 Foundation System Conversion CompleteTech Stack with Best-in-Class SystemsTalent retained and in place for next phaseFutureStrategic Talent AddsEfficiency, Capacity, AutomationData AnalyticsMoney MovementDigital First *Mobile Deposits, ATM & RDC Target: Digital Only Sales Best in Class ~ 50% ~ 50% 1Q2022 Consumer Loans SBA 7A Mortgage Loans 21% Deposit Accounts 16% 11% 5% ~80% Digital Deposits* 32%

| INVESTMENT THESIS17 High growth marketsScale and digital evolution to compete with the largest banksLow-cost relationship deposits valuable in rising rate environmentEntrepreneurial ownership culture

| Appendix

| NON-GAAP RECONCILIATIONS –ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (“EPS”) Dollarsinthousands,exceptforpersharedata19 Adjusted Net Income20172018201920202021Net income (GAAP)87,554$ 178,871$ 186,483$ 120,632$ 475,543$ Plus:Securities gains, net of tax(445) 520 (2,173) (41) (81) PCL - NonPCD loans and unfunded commitments- - - 92,212 - Benefit for income taxes - carryback tax loss- - - (31,468) - Provision for income taxes - deferred tax evaluation26,558 (990) - - - Merger and branch consolidation related expense, net of tax31,469 23,692 3,701 68,369 52,740 Swap termination expense- - - 31,784 - Pension plan termination expense, net of tax7,641 - - FHLB prepayment penalty, net of tax- - 107 200 - Extinguishment of debt cost, net of tax- - - - 9,081 Adjusted Net Income (Non-GAAP)145,136$ 202,093$ 195,759$ 281,688$ 537,283$ Adjusted EPS 20172018201920202021Adjusted diluted weighted-average common shares29,922 36,776 34,797 55,063 70,889 Adjusted net income (non-GAAP)145,136$ 202,093$ 195,759$ 281,688$ 537,283$ Adjusted EPS, Diluted (Non-GAAP)4.85$ 5.50$ 5.63$ 5.12$ 7.58$