EX-99.1 2 ssb-20220428xex99d1.htm EX-99.1

Exhibit 99.1

​ ​ ​ | ​
SouthState Corporation Reports First Quarter 2022 Results Declares Quarterly Cash Dividend | For Immediate Release
​ | Media Contact
​ | Jackie Smith, 803.231.3486

WINTER HAVEN, FL – April 28, 2022 – SouthState Corporation (NASDAQ: SSB) today released its unaudited results of operations and other financial information for the three-month period ended March 31, 2022.

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The Company reported consolidated net income of $1.39 per diluted common share for the three months ended March 31, 2022, compared to $1.52 per diluted common share for the three months ended December 31, 2021, and compared to $2.06 per diluted common share one year ago.

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Adjusted net income (non-GAAP) totaled $1.69 per diluted share for the three months ended March 31, 2022, compared to $1.59 per diluted share for the three months ended December 31, 2021, and compared to $2.17 per diluted share one year ago. Adjusted net income in the first quarter of 2022 excludes $13.5 million of initial provision for credit losses (“PCL”) (after-tax) on nonPCD loans and unfunded commitments (“UFC”) acquired from Atlantic Capital Bancshares, Inc. (“ACBI”) and $8.1 million of merger-related costs (after-tax). The ACBI merger was completed on March 1, 2022.

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“We had a good first quarter, with strength across the company. We are pleased with our revenue, expenses, growth and asset quality, and we believe this is a good start to the year,” said John C. Corbett, Chief Executive Officer. “We are also pleased to have closed the Atlantic Capital acquisition and to join with Doug Williams and his team. Our presence in Atlanta and other great markets in the Southeast combined with an improving interest rate environment gives me great confidence about our future.”

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Highlights of the first quarter of 2022 include:

Returns

| ● | Reported and Adjusted Diluted Earnings per Share (“EPS”) of $1.39* and $1.69* (Non-GAAP), respectively

| ● | Net Income and Adjusted Net Income of $100.3 million and $121.9 million (Non-GAAP), respectively

| ● | Return on Average Common Equity of 8.24%* and Reported and Adjusted Return on Average Tangible Common Equity of 14.0%* (Non-GAAP) and 16.8%* (Non-GAAP), respectively

| ● | Return on Average Assets (“ROAA”) and Adjusted ROAA of 0.95%* and 1.15%* (Non-GAAP), respectively

| ● | Pre-Provision Net Revenue (“PPNR”) of $129.2 million (Non-GAAP), or 1.22%* PPNR ROAA (Non-GAAP)

| ● | Book Value per Share of $68.30 decreased by $0.97 per share compared to the prior quarter

| ● | Tangible Book Value (“TBV”) per Share of $41.05 (Non-GAAP), down $3.57, or 8.0% from the prior quarter mainly attributable to the $3.60 per share impact from the change in AOCI and $1.21 from share repurchases

| ● | Recorded a negative provision for credit losses of $8.4 million, net of the $17.1 million initial provision recorded for nonPCD loans and UFC acquired from ACBI, compared to a negative provision for credit losses of $9.2 million in the prior quarter

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Performance

| ● | Net Interest Income of $261.5 million; Core Net Interest Income (non-GAAP) (excluding loan accretion and deferred fees on PPP) increased $9.0 million from prior quarter

| ● | Total deposit cost of 0.05%, down 1 basis point from prior quarter

| ● | Noninterest Income of $86.1 million, down $5.8 million compared to the prior quarter, primarily due to a $2.2 million decrease in correspondent banking and capital market income, $1.5 million decrease in mortgage banking income, and a $1.4 million decrease in fee income on deposit accounts

| ● | Noninterest Income represented 0.81% of average assets for the first quarter of 2022

| ● | Noninterest Expense excluding merger-related cost (Non-GAAP) increased $932,000 compared to the prior quarter; with the ACBI acquisition closing March 1, one month of its expenses are included in the first quarter of 2022

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Balance Sheet / Credit

| ● | Fed funds and interest-earning cash of $5.4 billion represents 11.8% of assets and provides significant optionality in a rising rate environment

| ● | Loan to deposit ratio of 68%

| ● | Loan production of $2.6 billion, excluding production by legacy ACBI

| * | Annualized

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| ● | Loans, excluding the acquisition date loan balances acquired from ACBI and PPP loans, increased $381.3 million, or 6.3% annualized

| ● | Deposits, excluding the acquisition date deposit balances acquired from ACBI, increased $692.4 million, or 7.5% annualized; total average deposits, excluding the acquisition date deposit balances from ACBI, increased $410.5 million, or 4.4% annualized, with core average deposit growth totaling $540.9 million, or 6.3% annualized

| ● | 60.2% of total deposits are checking, of which 36.2% are noninterest-bearing checking

| ● | Net charge-offs of $2.3 million, or 0.04% annualized

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Capital Returns

| ● | Repurchased 1,012,038 shares during 1Q 2022 at a weighted average price of $85.43 and 300,000 shares repurchased in April 2022, bringing total 2022 repurchases to approximately 1.31 million shares at a weighted average price of $83.99

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Subsequent Events

| ● | Declared a cash dividend on common stock of $0.49 per share, payable on May 20, 2022 to shareholders of record as of May 13, 2022

| ● | The Company announced it will be modifying its consumer overdraft program to eliminate NSF fees as well as transfer fees to cover overdrafts. It will also introduce a deposit product with no overdraft fees. The changes will be implemented starting in the third quarter and are estimated to reduce diluted annual earnings per share by approximately 8 to 10 cents.

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|  | Financial Performance

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​
(Dollars in thousands, except per share data) | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​
INCOME STATEMENT | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​
Interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans, including fees (1) | ​ | $ | 233,617 | ​ | $ | 238,310 | ​ | $ | 246,065 | ​ | $ | 246,177 | ​ | $ | 259,967 | ​
Investment securities, trading securities, federal funds sold and securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
purchased under agreements to resell | ​ | ​ | 36,847 | ​ | ​ | 29,071 | ​ | ​ | 25,384 | ​ | ​ | 21,364 | ​ | ​ | 18,509 | ​
Total interest income | ​ | ​ | 270,464 | ​ | ​ | 267,381 | ​ | ​ | 271,449 | ​ | ​ | 267,541 | ​ | ​ | 278,476 | ​
Interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits | ​ | ​ | 4,628 | ​ | ​ | 5,121 | ​ | ​ | 7,267 | ​ | ​ | 9,537 | ​ | ​ | 11,257 | ​
Federal funds purchased, securities sold under agreements | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
to repurchase, and other borrowings | ​ | ​ | 4,362 | ​ | ​ | 4,156 | ​ | ​ | 4,196 | ​ | ​ | 4,874 | ​ | ​ | 5,221 | ​
Total interest expense | ​ | ​ | 8,990 | ​ | ​ | 9,277 | ​ | ​ | 11,463 | ​ | ​ | 14,411 | ​ | ​ | 16,478 | ​
Net interest income | ​ | ​ | 261,474 | ​ | ​ | 258,104 | ​ | ​ | 259,986 | ​ | ​ | 253,130 | ​ | ​ | 261,998 | ​
(Recovery) provision for credit losses | ​ | ​ | (8,449) | ​ | ​ | (9,157) | ​ | ​ | (38,903) | ​ | ​ | (58,793) | ​ | ​ | (58,420) | ​
Net interest income after (recovery) provision for credit losses | ​ | ​ | 269,923 | ​ | ​ | 267,261 | ​ | ​ | 298,889 | ​ | ​ | 311,923 | ​ | ​ | 320,418 | ​
Noninterest income | ​ | ​ | 86,090 | ​ | ​ | 91,894 | ​ | ​ | 87,010 | ​ | ​ | 79,020 | ​ | ​ | 96,285 | ​
Noninterest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pre-tax operating expense | ​ | ​ | 218,324 | ​ | ​ | 217,392 | ​ | ​ | 214,672 | ​ | ​ | 218,707 | ​ | ​ | 218,702 | ​
Merger and/or branch consolid. expense | ​ | ​ | 10,276 | ​ | ​ | 6,645 | ​ | ​ | 17,618 | ​ | ​ | 32,970 | ​ | ​ | 10,009 | ​
Extinguishment of debt cost | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 11,706 | ​ | ​ | — | ​
Total noninterest expense | ​ | ​ | 228,600 | ​ | ​ | 224,037 | ​ | ​ | 232,290 | ​ | ​ | 263,383 | ​ | ​ | 228,711 | ​
Income before provision for income taxes | ​ | ​ | 127,413 | ​ | ​ | 135,118 | ​ | ​ | 153,609 | ​ | ​ | 127,560 | ​ | ​ | 187,992 | ​
Income taxes provision | ​ | ​ | 27,084 | ​ | ​ | 28,272 | ​ | ​ | 30,821 | ​ | ​ | 28,600 | ​ | ​ | 41,043 | ​
Net income | ​ | $ | 100,329 | ​ | $ | 106,846 | ​ | $ | 122,788 | ​ | $ | 98,960 | ​ | $ | 146,949 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted net income (non-GAAP) (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (GAAP) | ​ | $ | 100,329 | ​ | $ | 106,846 | ​ | $ | 122,788 | ​ | $ | 98,960 | ​ | $ | 146,949 | ​
Securities gains, net of tax | ​ | ​ | — | ​ | ​ | (2) | ​ | ​ | (51) | ​ | ​ | (28) | ​ | ​ | — | ​
Initial provision for credit losses - NonPCD loans and UFC, net of tax | ​ | ​ | 13,492 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​
Merger and/or branch consolid. expense, net of tax | ​ | ​ | 8,092 | ​ | ​ | 5,255 | ​ | ​ | 14,083 | ​ | ​ | 25,578 | ​ | ​ | 7,824 | ​
Extinguishment of debt cost, net of tax | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,081 | ​ | ​ | — | ​
Adjusted net income (non-GAAP) | ​ | $ | 121,913 | ​ | $ | 112,099 | ​ | $ | 136,820 | ​ | $ | 133,591 | ​ | $ | 154,773 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic earnings per common share | ​ | $ | 1.40 | ​ | $ | 1.53 | ​ | $ | 1.75 | ​ | $ | 1.40 | ​ | $ | 2.07 | ​
Diluted earnings per common share | ​ | $ | 1.39 | ​ | $ | 1.52 | ​ | $ | 1.74 | ​ | $ | 1.39 | ​ | $ | 2.06 | ​
Adjusted net income per common share - Basic (non-GAAP) (2) | ​ | $ | 1.71 | ​ | $ | 1.61 | ​ | $ | 1.95 | ​ | $ | 1.89 | ​ | $ | 2.18 | ​
Adjusted net income per common share - Diluted (non-GAAP) (2) | ​ | $ | 1.69 | ​ | $ | 1.59 | ​ | $ | 1.94 | ​ | $ | 1.87 | ​ | $ | 2.17 | ​
Dividends per common share | ​ | $ | 0.49 | ​ | $ | 0.49 | ​ | $ | 0.49 | ​ | $ | 0.47 | ​ | $ | 0.47 | ​
Basic weighted-average common shares outstanding | ​ | ​ | 71,447,429 | ​ | ​ | 69,651,334 | ​ | ​ | 70,066,235 | ​ | ​ | 70,866,193 | ​ | ​ | 71,009,209 | ​
Diluted weighted-average common shares outstanding | ​ | ​ | 72,110,746 | ​ | ​ | 70,289,971 | ​ | ​ | 70,575,726 | ​ | ​ | 71,408,888 | ​ | ​ | 71,484,490 | ​
Effective tax rate | ​ | ​ | 21.26% | ​ | ​ | 20.92% | ​ | ​ | 20.06% | ​ | ​ | 22.42% | ​ | ​ | 21.83% | ​

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Performance and Capital Ratios

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | ​
​ | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​ | ​
​ | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | ​
PERFORMANCE RATIOS | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on average assets (annualized) | ​ | ​ | 0.95 | % | ​ | 1.02 | % | ​ | 1.20 | % | ​ | 1.00 | % | ​ | 1.56 | % | ​
Adjusted return on average assets (annualized) (non-GAAP) (2) | ​ | ​ | 1.15 | % | ​ | 1.08 | % | ​ | 1.34 | % | ​ | 1.35 | % | ​ | 1.64 | % | ​
Return on average common equity (annualized) | ​ | ​ | 8.24 | % | ​ | 8.84 | % | ​ | 10.21 | % | ​ | 8.38 | % | ​ | 12.71 | % | ​
Adjusted return on average common equity (annualized) (non-GAAP) (2) | ​ | ​ | 10.01 | % | ​ | 9.28 | % | ​ | 11.37 | % | ​ | 11.31 | % | ​ | 13.39 | % | ​
Return on average tangible common equity (annualized) (non-GAAP) (3) | ​ | ​ | 13.97 | % | ​ | 14.63 | % | ​ | 16.86 | % | ​ | 14.12 | % | ​ | 21.16 | % | ​
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3) | ​ | ​ | 16.79 | % | ​ | 15.30 | % | ​ | 18.68 | % | ​ | 18.74 | % | ​ | 22.24 | % | ​
Efficiency ratio (tax equivalent) | ​ | ​ | 62.99 | % | ​ | 61.27 | % | ​ | 64.22 | % | ​ | 76.28 | % | ​ | 61.06 | % | ​
Adjusted efficiency ratio (non-GAAP) (4) | ​ | ​ | 60.05 | % | ​ | 59.39 | % | ​ | 59.16 | % | ​ | 62.88 | % | ​ | 58.27 | % | ​
Dividend payout ratio (5) | ​ | ​ | 33.71 | % | ​ | 32.02 | % | ​ | 27.94 | % | ​ | 33.65 | % | ​ | 22.72 | % | ​
Book value per common share | ​ | $ | 68.30 | ​ | $ | 69.27 | ​ | $ | 68.55 | ​ | $ | 67.60 | ​ | $ | 66.42 | ​ | ​
Tangible book value per common share (non-GAAP) (3) | ​ | $ | 41.05 | ​ | $ | 44.62 | ​ | $ | 43.98 | ​ | $ | 43.07 | ​ | $ | 42.02 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
CAPITAL RATIOS | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equity-to-assets | ​ | ​ | 11.2 | % | ​ | 11.4 | % | ​ | 11.7 | % | ​ | 11.8 | % | ​ | 11.9 | ​ | ​
Tangible equity-to-tangible assets (non-GAAP) (3) | ​ | ​ | 7.0 | % | ​ | 7.7 | % | ​ | 7.8 | % | ​ | 7.8 | % | ​ | 7.9 | ​ | ​
Tier 1 leverage (6) * | ​ | ​ | 8.5 | % | ​ | 8.1 | % | ​ | 8.1 | % | ​ | 8.1 | % | ​ | 8.5 | ​ | ​
Tier 1 common equity (6) * | ​ | ​ | 11.4 | % | ​ | 11.8 | % | ​ | 11.9 | % | ​ | 12.1 | % | ​ | 12.2 | ​ | ​
Tier 1 risk-based capital (6) * | ​ | ​ | 11.4 | % | ​ | 11.8 | % | ​ | 11.9 | % | ​ | 12.1 | % | ​ | 12.2 | ​ | ​
Total risk-based capital (6) * | ​ | ​ | 13.3 | % | ​ | 13.6 | % | ​ | 13.8 | % | ​ | 14.1 | % | ​ | 14.5 | ​ | ​

| * | The regulatory capital ratios presented above include the assumption of the transitional method relative to the CARES Act in relief of COVID-19 pandemic on the economy and financial institutions in the United States. The referenced relief allows a total five-year “phase in” of the CECL impact on capital and relief over the next two years for the impact on the allowance for credit losses resulting from COVID-19.

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4

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Balance Sheet

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Ending Balance | ​
(Dollars in thousands, except per share and share data) | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​
BALANCE SHEET | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​
Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash and due from banks | ​ | $ | 588,372 | ​ | $ | 476,653 | ​ | $ | 597,321 | ​ | $ | 529,434 | ​ | $ | 392,556 | ​
Federal Funds Sold and interest-earning deposits with banks | ​ | ​ | 5,444,234 | ​ | ​ | 6,366,494 | ​ | ​ | 5,701,002 | ​ | ​ | 5,875,078 | ​ | ​ | 5,581,581 | ​
Cash and cash equivalents | ​ | ​ | 6,032,606 | ​ | ​ | 6,843,147 | ​ | ​ | 6,298,323 | ​ | ​ | 6,404,512 | ​ | ​ | 5,974,137 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Trading securities, at fair value | ​ | ​ | 74,234 | ​ | ​ | 77,689 | ​ | ​ | 61,294 | ​ | ​ | 89,925 | ​ | ​ | 83,947 | ​
Investment securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Securities held to maturity | ​ | ​ | 2,827,769 | ​ | ​ | 1,819,901 | ​ | ​ | 1,641,485 | ​ | ​ | 1,189,265 | ​ | ​ | 1,214,313 | ​
Securities available for sale, at fair value | ​ | ​ | 5,924,206 | ​ | ​ | 5,193,478 | ​ | ​ | 4,631,554 | ​ | ​ | 4,369,159 | ​ | ​ | 3,891,490 | ​
Other investments | ​ | ​ | 179,258 | ​ | ​ | 160,568 | ​ | ​ | 160,592 | ​ | ​ | 160,607 | ​ | ​ | 161,468 | ​
Total investment securities | ​ | ​ | 8,931,233 | ​ | ​ | 7,173,947 | ​ | ​ | 6,433,631 | ​ | ​ | 5,719,031 | ​ | ​ | 5,267,271 | ​
Loans held for sale | ​ | ​ | 130,376 | ​ | ​ | 191,723 | ​ | ​ | 242,813 | ​ | ​ | 171,447 | ​ | ​ | 352,997 | ​
Loans: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Purchased credit deteriorated | ​ | ​ | 1,939,033 | ​ | ​ | 1,987,322 | ​ | ​ | 2,255,874 | ​ | ​ | 2,434,259 | ​ | ​ | 2,680,466 | ​
Purchased non-credit deteriorated | ​ | ​ | 7,633,824 | ​ | ​ | 5,890,069 | ​ | ​ | 6,554,647 | ​ | ​ | 7,457,950 | ​ | ​ | 8,433,913 | ​
Non-acquired | ​ | ​ | 16,983,570 | ​ | ​ | 16,050,775 | ​ | ​ | 14,978,428 | ​ | ​ | 14,140,869 | ​ | ​ | 13,377,086 | ​
Less allowance for credit losses | ​ | ​ | (300,396) | ​ | ​ | (301,807) | ​ | ​ | (314,144) | ​ | ​ | (350,401) | ​ | ​ | (406,460) | ​
Loans, net | ​ | ​ | 26,256,031 | ​ | ​ | 23,626,359 | ​ | ​ | 23,474,805 | ​ | ​ | 23,682,677 | ​ | ​ | 24,085,005 | ​
Other real estate owned ("OREO") | ​ | ​ | 3,290 | ​ | ​ | 2,736 | ​ | ​ | 3,687 | ​ | ​ | 5,039 | ​ | ​ | 11,471 | ​
Premises and equipment, net | ​ | ​ | 568,332 | ​ | ​ | 558,499 | ​ | ​ | 569,817 | ​ | ​ | 568,473 | ​ | ​ | 569,171 | ​
Bank owned life insurance | ​ | ​ | 942,922 | ​ | ​ | 783,049 | ​ | ​ | 778,552 | ​ | ​ | 773,452 | ​ | ​ | 562,624 | ​
Mortgage servicing rights | ​ | ​ | 83,339 | ​ | ​ | 65,620 | ​ | ​ | 60,922 | ​ | ​ | 57,351 | ​ | ​ | 54,285 | ​
Core deposit and other intangibles | ​ | ​ | 140,364 | ​ | ​ | 128,067 | ​ | ​ | 136,584 | ​ | ​ | 145,126 | ​ | ​ | 153,861 | ​
Goodwill | ​ | ​ | 1,924,024 | ​ | ​ | 1,581,085 | ​ | ​ | 1,581,085 | ​ | ​ | 1,581,085 | ​ | ​ | 1,579,758 | ​
Other assets | ​ | ​ | 1,114,790 | ​ | ​ | 928,111 | ​ | ​ | 1,262,195 | ​ | ​ | 1,177,751 | ​ | ​ | 1,035,805 | ​
Total assets | ​ | $ | 46,201,541 | ​ | $ | 41,960,032 | ​ | $ | 40,903,708 | ​ | $ | 40,375,869 | ​ | $ | 39,730,332 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities and Shareholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest-bearing | ​ | $ | 14,052,332 | ​ | $ | 11,498,840 | ​ | $ | 11,333,881 | ​ | $ | 11,176,338 | ​ | $ | 10,801,812 | ​
Interest-bearing | ​ | ​ | 24,723,498 | ​ | ​ | 23,555,989 | ​ | ​ | 22,226,677 | ​ | ​ | 22,066,031 | ​ | ​ | 21,639,598 | ​
Total deposits | ​ | ​ | 38,775,830 | ​ | ​ | 35,054,829 | ​ | ​ | 33,560,558 | ​ | ​ | 33,242,369 | ​ | ​ | 32,441,410 | ​
Federal funds purchased and securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
sold under agreements to repurchase | ​ | ​ | 770,409 | ​ | ​ | 781,239 | ​ | ​ | 859,736 | ​ | ​ | 862,429 | ​ | ​ | 878,581 | ​
Other borrowings | ​ | ​ | 405,553 | ​ | ​ | 327,066 | ​ | ​ | 326,807 | ​ | ​ | 351,548 | ​ | ​ | 390,323 | ​
Reserve for unfunded commitments | ​ | ​ | 30,368 | ​ | ​ | 30,510 | ​ | ​ | 28,289 | ​ | ​ | 30,981 | ​ | ​ | 35,829 | ​
Other liabilities | ​ | ​ | 1,044,973 | ​ | ​ | 963,448 | ​ | ​ | 1,335,377 | ​ | ​ | 1,130,919 | ​ | ​ | 1,264,369 | ​
Total liabilities | ​ | ​ | 41,027,133 | ​ | ​ | 37,157,092 | ​ | ​ | 36,110,767 | ​ | ​ | 35,618,247 | ​ | ​ | 35,010,512 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Shareholders' equity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Common stock - $2.50 par value; authorized 160,000,000 shares | ​ | ​ | 189,403 | ​ | ​ | 173,331 | ​ | ​ | 174,795 | ​ | ​ | 175,957 | ​ | ​ | 177,651 | ​
Surplus | ​ | ​ | 4,214,897 | ​ | ​ | 3,653,098 | ​ | ​ | 3,693,622 | ​ | ​ | 3,720,946 | ​ | ​ | 3,772,248 | ​
Retained earnings | ​ | ​ | 1,064,064 | ​ | ​ | 997,657 | ​ | ​ | 925,044 | ​ | ​ | 836,584 | ​ | ​ | 770,952 | ​
Accumulated other comprehensive (loss) income | ​ | ​ | (293,956) | ​ | ​ | (21,146) | ​ | ​ | (520) | ​ | ​ | 24,136 | ​ | ​ | (1,031) | ​
Total shareholders' equity | ​ | ​ | 5,174,408 | ​ | ​ | 4,802,940 | ​ | ​ | 4,792,941 | ​ | ​ | 4,757,623 | ​ | ​ | 4,719,820 | ​
Total liabilities and shareholders' equity | ​ | $ | 46,201,541 | ​ | $ | 41,960,032 | ​ | $ | 40,903,708 | ​ | $ | 40,375,869 | ​ | $ | 39,730,332 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Common shares issued and outstanding | ​ | ​ | 75,761,018 | ​ | ​ | 69,332,297 | ​ | ​ | 69,918,037 | ​ | ​ | 70,382,728 | ​ | ​ | 71,060,446 | ​

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5

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Net Interest Income and Margin

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​
​ | ​ | Mar. 31, 2022 | ​ | Dec. 31, 2021 | ​ | Mar. 31, 2021 | ​
(Dollars in thousands) | ​ | Average | ​ | Income/ | ​ | Yield/ | ​ | Average | ​ | Income/ | ​ | Yield/ | ​ | Average | ​ | Income/ | ​ | Yield/ | ​
YIELD ANALYSIS | ​ | Balance | ​ | Expense | ​ | Rate | ​ | Balance | ​ | Expense | ​ | Rate | ​ | Balance | ​ | Expense | ​ | Rate | ​
Interest-Earning Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal funds sold and interest-earning deposits with banks | ​ | $ | 5,678,147 | ​ | $ | 2,852 | ​ | 0.20% | ​ | $ | 6,070,349 | ​ | $ | 2,224 | ​ | 0.15% | ​ | $ | 4,757,717 | ​ | $ | 989 | ​ | 0.08% | ​
Investment securities | ​ | ​ | 7,895,281 | ​ | ​ | 33,995 | ​ | 1.75% | ​ | ​ | 6,945,952 | ​ | ​ | 26,847 | ​ | 1.53% | ​ | ​ | 4,683,152 | ​ | ​ | 17,520 | ​ | 1.52% | ​
Loans held for sale | ​ | ​ | 110,542 | ​ | ​ | 869 | ​ | 3.19% | ​ | ​ | 206,920 | ​ | ​ | 1,526 | ​ | 2.93% | ​ | ​ | 298,970 | ​ | ​ | 1,991 | ​ | 2.70% | ​
Total loans, excluding PPP | ​ | ​ | 24,675,512 | ​ | ​ | 231,373 | ​ | 3.80% | ​ | ​ | 23,445,336 | ​ | ​ | 230,337 | ​ | 3.90% | ​ | ​ | 22,302,393 | ​ | ​ | 235,945 | ​ | 4.29% | ​
Total PPP loans | ​ | ​ | 167,541 | ​ | ​ | 1,375 | ​ | 3.33% | ​ | ​ | 363,083 | ​ | ​ | 6,447 | ​ | 7.04% | ​ | ​ | 2,189,696 | ​ | ​ | 22,031 | ​ | 4.08% | ​
Total loans held for investment | ​ | ​ | 24,843,053 | ​ | ​ | 232,748 | ​ | 3.80% | ​ | ​ | 23,808,419 | ​ | ​ | 236,784 | ​ | 3.95% | ​ | ​ | 24,492,089 | ​ | ​ | 257,976 | ​ | 4.27% | ​
Total interest-earning assets | ​ | ​ | 38,527,023 | ​ | ​ | 270,464 | ​ | 2.85% | ​ | ​ | 37,031,640 | ​ | ​ | 267,381 | ​ | 2.86% | ​ | ​ | 34,231,928 | ​ | ​ | 278,476 | ​ | 3.30% | ​
Noninterest-earning assets | ​ | ​ | 4,419,309 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,328,068 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,013,482 | ​ | ​ | ​ | ​ | ​ | ​
Total Assets | ​ | $ | 42,946,332 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 41,359,708 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 38,245,410 | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest-Bearing Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Transaction and money market accounts | ​ | $ | 17,473,192 | ​ | $ | 2,217 | ​ | 0.05% | ​ | $ | 16,492,540 | ​ | $ | 2,230 | ​ | 0.05% | ​ | $ | 14,678,248 | ​ | $ | 5,387 | ​ | 0.15% | ​
Savings deposits | ​ | ​ | 3,408,129 | ​ | ​ | 130 | ​ | 0.02% | ​ | ​ | 3,267,366 | ​ | ​ | 135 | ​ | 0.02% | ​ | ​ | 2,780,361 | ​ | ​ | 434 | ​ | 0.06% | ​
Certificates and other time deposits | ​ | ​ | 2,848,829 | ​ | ​ | 2,281 | ​ | 0.32% | ​ | ​ | 2,889,741 | ​ | ​ | 2,756 | ​ | 0.38% | ​ | ​ | 3,672,818 | ​ | ​ | 5,436 | ​ | 0.60% | ​
Federal funds purchased | ​ | ​ | 354,899 | ​ | ​ | 111 | ​ | 0.13% | ​ | ​ | 493,776 | ​ | ​ | 107 | ​ | 0.09% | ​ | ​ | 434,943 | ​ | ​ | 92 | ​ | 0.09% | ​
Repurchase agreements | ​ | ​ | 438,258 | ​ | ​ | 158 | ​ | 0.15% | ​ | ​ | 390,212 | ​ | ​ | 150 | ​ | 0.15% | ​ | ​ | 417,334 | ​ | ​ | 259 | ​ | 0.25% | ​
Other borrowings | ​ | ​ | 354,133 | ​ | ​ | 4,093 | ​ | 4.69% | ​ | ​ | 326,921 | ​ | ​ | 3,899 | ​ | 4.73% | ​ | ​ | 390,043 | ​ | ​ | 4,870 | ​ | 5.06% | ​
Total interest-bearing liabilities | ​ | ​ | 24,877,440 | ​ | ​ | 8,990 | ​ | 0.15% | ​ | ​ | 23,860,556 | ​ | ​ | 9,277 | ​ | 0.15% | ​ | ​ | 22,373,747 | ​ | ​ | 16,478 | ​ | 0.30% | ​
Noninterest-bearing liabilities ("Non-IBL") | ​ | ​ | 13,131,727 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 12,704,738 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 11,184,514 | ​ | ​ | ​ | ​ | ​ | ​
Shareholders' equity | ​ | ​ | 4,937,165 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,794,414 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,687,149 | ​ | ​ | ​ | ​ | ​ | ​
Total Non-IBL and shareholders' equity | ​ | ​ | 18,068,892 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,499,152 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 15,871,663 | ​ | ​ | ​ | ​ | ​ | ​
Total Liabilities and Shareholders' Equity | ​ | $ | 42,946,332 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 41,359,708 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 38,245,410 | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income and Margin (Non-Tax Equivalent) | ​ | ​ | ​ | ​ | $ | 261,474 | ​ | 2.75% | ​ | ​ | ​ | ​ | $ | 258,104 | ​ | 2.77% | ​ | ​ | ​ | ​ | $ | 261,998 | ​ | 3.10% | ​
Net Interest Margin (Tax Equivalent) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2.77% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2.78% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3.12% | ​
Total Deposit Cost (without Debt and Other Borrowings) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.05% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.06% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.15% | ​
Overall Cost of Funds (including Demand Deposits) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.10% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.10% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.21% | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Accretion on Acquired Loans (1) | ​ | ​ | ​ | ​ | $ | 6,741 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 7,707 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 10,416 | ​ | ​ | ​
Total Deferred Fees on PPP Loans | ​ | ​ | ​ | ​ | $ | 983 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 5,655 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 20,402 | ​ | ​ | ​
TEFRA (included in NIM, Tax Equivalent) | ​ | ​ | ​ | ​ | $ | 1,885 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,734 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,286 | ​ | ​ | ​

| (1) | The remaining loan discount on acquired loans to be accreted into loan interest income totals $100.7 million and the remaining net deferred fees on PPP loans totals $658,000 as of March 31, 2022.

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6

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Noninterest Income and Expense

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​
​ | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​
(Dollars in thousands) | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​
Noninterest Income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Fees on deposit accounts | ​ | $ | 28,902 | ​ | $ | 30,293 | ​ | $ | 26,130 | ​ | $ | 23,936 | ​ | $ | 25,282 | ​
Mortgage banking income | ​ | ​ | 10,594 | ​ | ​ | 12,044 | ​ | ​ | 15,560 | ​ | ​ | 10,115 | ​ | ​ | 26,880 | ​
Trust and investment services income | ​ | ​ | 9,718 | ​ | ​ | 9,520 | ​ | ​ | 9,150 | ​ | ​ | 9,733 | ​ | ​ | 8,578 | ​
Securities gains, net | ​ | ​ | — | ​ | ​ | 2 | ​ | ​ | 64 | ​ | ​ | 36 | ​ | ​ | — | ​
Correspondent banking and capital market income | ​ | ​ | 27,994 | ​ | ​ | 30,216 | ​ | ​ | 25,164 | ​ | ​ | 25,877 | ​ | ​ | 28,748 | ​
Bank owned life insurance income | ​ | ​ | 5,260 | ​ | ​ | 4,932 | ​ | ​ | 5,132 | ​ | ​ | 5,047 | ​ | ​ | 3,300 | ​
Other | ​ | ​ | 3,622 | ​ | ​ | 4,887 | ​ | ​ | 5,810 | ​ | ​ | 4,276 | ​ | ​ | 3,498 | ​
Total Noninterest Income | ​ | $ | 86,090 | ​ | $ | 91,894 | ​ | $ | 87,010 | ​ | $ | 79,020 | ​ | $ | 96,286 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Expense: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Salaries and employee benefits | ​ | $ | 137,673 | ​ | $ | 137,321 | ​ | $ | 136,969 | ​ | $ | 137,379 | ​ | $ | 140,361 | ​
Occupancy expense | ​ | ​ | 21,840 | ​ | ​ | 22,915 | ​ | ​ | 23,135 | ​ | ​ | 22,844 | ​ | ​ | 23,331 | ​
Information services expense | ​ | ​ | 19,193 | ​ | ​ | 18,489 | ​ | ​ | 18,061 | ​ | ​ | 19,078 | ​ | ​ | 18,789 | ​
OREO and loan related expense | ​ | ​ | (238) | ​ | ​ | (740) | ​ | ​ | 1,527 | ​ | ​ | 240 | ​ | ​ | 1,002 | ​
Business development and staff related | ​ | ​ | 4,276 | ​ | ​ | 4,577 | ​ | ​ | 4,424 | ​ | ​ | 4,305 | ​ | ​ | 3,371 | ​
Amortization of intangibles | ​ | ​ | 8,494 | ​ | ​ | 8,517 | ​ | ​ | 8,543 | ​ | ​ | 8,968 | ​ | ​ | 9,164 | ​
Professional fees | ​ | ​ | 3,749 | ​ | ​ | 2,639 | ​ | ​ | 2,415 | ​ | ​ | 2,301 | ​ | ​ | 3,274 | ​
Supplies and printing expense | ​ | ​ | 2,189 | ​ | ​ | 2,179 | ​ | ​ | 2,310 | ​ | ​ | 2,500 | ​ | ​ | 2,670 | ​
FDIC assessment and other regulatory charges | ​ | ​ | 4,812 | ​ | ​ | 4,965 | ​ | ​ | 4,245 | ​ | ​ | 4,931 | ​ | ​ | 3,841 | ​
Advertising and marketing | ​ | ​ | 1,763 | ​ | ​ | 2,375 | ​ | ​ | 2,185 | ​ | ​ | 1,659 | ​ | ​ | 1,740 | ​
Other operating expenses | ​ | ​ | 14,573 | ​ | ​ | 14,155 | ​ | ​ | 10,858 | ​ | ​ | 14,502 | ​ | ​ | 11,159 | ​
Branch consolidation and merger expense | ​ | ​ | 10,276 | ​ | ​ | 6,645 | ​ | ​ | 17,618 | ​ | ​ | 32,970 | ​ | ​ | 10,009 | ​
Extinguishment of debt cost | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 11,706 | ​ | ​ | — | ​
Total Noninterest Expense | ​ | $ | 228,600 | ​ | $ | 224,037 | ​ | $ | 232,290 | ​ | $ | 263,383 | ​ | $ | 228,711 | ​

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7

​

Loans and Deposits

The following table presents a summary of the loan portfolio by type (dollars in thousands):

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Ending Balance | ​
(Dollars in thousands) | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​
LOAN PORTFOLIO | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​
Construction and land development * † | ​ | $ | 2,316,313 | ​ | $ | 2,029,216 | ​ | $ | 2,032,731 | ​ | $ | 1,947,646 | ​ | $ | 1,888,240 | ​
Investor commercial real estate* | ​ | ​ | 8,158,457 | ​ | ​ | 7,432,503 | ​ | ​ | 7,131,192 | ​ | ​ | 7,094,109 | ​ | ​ | 6,978,326 | ​
Commercial owner occupied real estate | ​ | ​ | 5,346,583 | ​ | ​ | 4,970,116 | ​ | ​ | 4,988,490 | ​ | ​ | 4,895,189 | ​ | ​ | 4,817,346 | ​
Commercial and industrial, excluding PPP | ​ | ​ | 4,447,279 | ​ | ​ | 3,516,485 | ​ | ​ | 3,458,520 | ​ | ​ | 3,121,625 | ​ | ​ | 3,140,893 | ​
Consumer real estate * | ​ | ​ | 4,988,736 | ​ | ​ | 4,806,958 | ​ | ​ | 4,733,567 | ​ | ​ | 4,748,693 | ​ | ​ | 4,835,567 | ​
Consumer/other | ​ | ​ | 1,179,697 | ​ | ​ | 928,240 | ​ | ​ | 943,243 | ​ | ​ | 907,181 | ​ | ​ | 885,320 | ​
Total loans, excluding PPP | ​ | ​ | 26,437,065 | ​ | ​ | 23,683,518 | ​ | ​ | 23,287,743 | ​ | ​ | 22,714,443 | ​ | ​ | 22,545,692 | ​
PPP loans | ​ | ​ | 119,362 | ​ | ​ | 244,648 | ​ | ​ | 501,206 | ​ | ​ | 1,318,635 | ​ | ​ | 1,945,773 | ​
Total Loans | ​ | $ | 26,556,427 | ​ | $ | 23,928,166 | ​ | $ | 23,788,949 | ​ | $ | 24,033,078 | ​ | $ | 24,491,465 | ​

As a result of the conversion of legacy CenterState’s core system to the Company’s core system completed in 2Q 2021, several loans were reclassified to conform with the Company’s loan segmentation, most notably residential investment loans which were reclassed from consumer real estate to investor commercial real estate.

* Single family home construction-to-permanent loans originated by the Company’s mortgage banking division are included in construction and land development category until completion. Investor commercial real estate loans include commercial non-owner occupied real estate and other income producing property. Consumer real estate includes consumer owner occupied real estate and home equity loans.

† Includes single family home construction-to-permanent loans of $733.7 million, $686.5 million, $665.0 million, $599.4 million, and $559.5 million for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Ending Balance | ​
(Dollars in thousands) | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​
DEPOSITS | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​
Noninterest-bearing checking | ​ | $ | 14,052,332 | ​ | $ | 11,498,840 | ​ | $ | 11,333,881 | ​ | $ | 11,176,338 | ​ | $ | 10,801,812 | ​
Interest-bearing checking | ​ | ​ | 9,275,208 | ​ | ​ | 9,018,987 | ​ | ​ | 7,920,236 | ​ | ​ | 7,651,433 | ​ | ​ | 7,369,066 | ​
Savings | ​ | ​ | 3,479,743 | ​ | ​ | 3,350,547 | ​ | ​ | 3,201,543 | ​ | ​ | 3,051,229 | ​ | ​ | 2,906,673 | ​
Money market | ​ | ​ | 9,140,005 | ​ | ​ | 8,376,380 | ​ | ​ | 8,110,162 | ​ | ​ | 8,024,117 | ​ | ​ | 7,884,132 | ​
Time deposits | ​ | ​ | 2,828,542 | ​ | ​ | 2,810,075 | ​ | ​ | 2,994,736 | ​ | ​ | 3,339,252 | ​ | ​ | 3,479,727 | ​
Total Deposits | ​ | $ | 38,775,830 | ​ | $ | 35,054,829 | ​ | $ | 33,560,558 | ​ | $ | 33,242,369 | ​ | $ | 32,441,410 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Core Deposits (excludes Time Deposits) | ​ | $ | 35,947,288 | ​ | $ | 32,244,754 | ​ | $ | 30,565,822 | ​ | $ | 29,903,117 | ​ | $ | 28,961,683 | ​

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8

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Asset Quality

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Ending Balance | ​
​ | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​
(Dollars in thousands) | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​
NONPERFORMING ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non-acquired | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non-acquired nonaccrual loans and restructured loans on nonaccrual | ​ | $ | 19,582 | ​ | $ | 18,700 | ​ | $ | 23,800 | ​ | $ | 16,065 | ​ | $ | 20,181 | ​
Accruing loans past due 90 days or more * | ​ | ​ | 22,818 | ​ | ​ | 4,612 | ​ | ​ | 1,729 | ​ | ​ | 559 | ​ | ​ | 853 | ​
Non-acquired OREO and other nonperforming assets | ​ | ​ | 464 | ​ | ​ | 590 | ​ | ​ | 365 | ​ | ​ | 695 | ​ | ​ | 654 | ​
Total non-acquired nonperforming assets | ​ | ​ | 42,864 | ​ | ​ | 23,902 | ​ | ​ | 25,894 | ​ | ​ | 17,319 | ​ | ​ | 21,688 | ​
Acquired | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Acquired nonaccrual loans and restructured loans on nonaccrual | ​ | ​ | 59,267 | ​ | ​ | 56,718 | ​ | ​ | 64,583 | ​ | ​ | 69,053 | ​ | ​ | 79,919 | ​
Accruing loans past due 90 days or more † | ​ | ​ | 12,768 | ​ | ​ | 251 | ​ | ​ | 89 | ​ | ​ | — | ​ | ​ | 105 | ​
Acquired OREO and other nonperforming assets | ​ | ​ | 3,118 | ​ | ​ | 2,875 | ​ | ​ | 3,804 | ​ | ​ | 4,777 | ​ | ​ | 11,292 | ​
Total acquired nonperforming assets | ​ | ​ | 75,153 | ​ | ​ | 59,844 | ​ | ​ | 68,476 | ​ | ​ | 73,830 | ​ | ​ | 91,316 | ​
Total nonperforming assets | ​ | $ | 118,017 | ​ | $ | 83,746 | ​ | $ | 94,370 | ​ | $ | 91,149 | ​ | $ | 113,004 | ​

| * | The increase in accrual loans past due 90 days or more for non-acquired loans as of March 31, 2022 compared to the prior quarter was primarily due to factored receivables, which are trade credits rather than promissory notes. Since quarter-end and as of April 28, 2022, approximately $11.6 million of these invoices have been collected.

† The increase in accrual loans past due 90 days or more for acquired loans as of March 31, 2022 compared to the prior quarter was mainly attributable to the loans acquired from the ACBI merger.

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​
​ | ​ | Mar. 31, | ​ | Dec. 31, | ​ | Sep. 30, | ​ | Jun. 30, | ​ | Mar. 31, | ​
​ | ​ | 2022 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​ | 2021 | ​
ASSET QUALITY RATIOS: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance for credit losses as a percentage of loans | ​ | ​ | 1.13% | ​ | ​ | 1.26% | ​ | ​ | 1.32% | ​ | ​ | 1.46% | ​ | ​ | 1.66% | ​
Allowance for credit losses as a percentage of loans, excluding PPP loans | ​ | ​ | 1.14% | ​ | ​ | 1.27% | ​ | ​ | 1.35% | ​ | ​ | 1.54% | ​ | ​ | 1.80% | ​
Allowance for credit losses as a percentage of nonperforming loans | ​ | ​ | 262.50% | ​ | ​ | 375.94% | ​ | ​ | 348.27% | ​ | ​ | 408.98% | ​ | ​ | 402.20% | ​
Net (recoveries) charge-offs as a percentage of average loans (annualized) | ​ | ​ | 0.04% | ​ | ​ | 0.02% | ​ | ​ | 0.00% | ​ | ​ | 0.03% | ​ | ​ | (0.00)% | ​
Total nonperforming assets as a percentage of total assets | ​ | ​ | 0.26% | ​ | ​ | 0.20% | ​ | ​ | 0.23% | ​ | ​ | 0.23% | ​ | ​ | 0.28% | ​
Nonperforming loans as a percentage of period end loans | ​ | ​ | 0.43% | ​ | ​ | 0.34% | ​ | ​ | 0.38% | ​ | ​ | 0.36% | ​ | ​ | 0.41% | ​

​

Current Expected Credit Losses (“CECL”)

Below is a table showing the roll forward of the ACL and UFC for the first quarter of 2022:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Allowance for Credit Losses ("ACL and UFC") | ​
​ | ​ | NonPCD ACL | ​ | PCD ACL | ​ | Total ACL | ​ | UFC | ​
Ending Balance 12/31/2021 | ​ | $ | 225,227 | ​ | $ | 76,580 | ​ | $ | 301,807 | ​ | $ | 30,510 | ​
ACL - PCD loans from ACBI | ​ | ​ | — | ​ | ​ | 9,218 | ​ | ​ | 9,218 | ​ | ​ | — | ​
Initial provision for credit losses - ACBI | ​ | ​ | 13,697 | ​ | ​ | — | ​ | ​ | 13,697 | ​ | ​ | 3,437 | ​
Charge offs | ​ | ​ | (3,523) | ​ | ​ | — | ​ | ​ | (3,523) | ​ | ​ | — | ​
Acquired charge offs | ​ | ​ | (601) | ​ | ​ | (1,367) | ​ | ​ | (1,968) | ​ | ​ | — | ​
Recoveries | ​ | ​ | 1,573 | ​ | ​ | — | ​ | ​ | 1,573 | ​ | ​ | — | ​
Acquired recoveries | ​ | ​ | 717 | ​ | ​ | 879 | ​ | ​ | 1,596 | ​ | ​ | — | ​
(Recovery) provision for credit losses | ​ | ​ | (9,261) | ​ | ​ | (12,743) | ​ | ​ | (22,004) | ​ | ​ | (3,579) | ​
Ending balance 3/31/2022 | ​ | $ | 227,829 | ​ | $ | 72,567 | ​ | $ | 300,396 | ​ | $ | 30,368 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Period end loans (includes PPP Loans) | ​ | $ | 24,617,394 | ​ | $ | 1,939,033 | ​ | $ | 26,556,427 | ​ | ​ | N/A | ​
Reserve to Loans (includes PPP Loans) | ​ | ​ | 0.93% | ​ | ​ | 3.74% | ​ | ​ | 1.13% | ​ | ​ | N/A | ​
Period end loans (excludes PPP Loans) | ​ | $ | 24,498,032 | ​ | $ | 1,939,033 | ​ | $ | 26,437,065 | ​ | ​ | N/A | ​
Reserve to Loans (excludes PPP Loans) | ​ | ​ | 0.93% | ​ | ​ | 3.74% | ​ | ​ | 1.14% | ​ | ​ | N/A | ​
Unfunded commitments (off balance sheet) * | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 7,394,045 | ​
Reserve to unfunded commitments (off balance sheet) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.41% | ​

* Unfunded commitments exclude unconditionally cancelable commitments and letters of credit.

Conference Call

​

The Company will host a conference call to discuss its first quarter results at 10:00 a.m. Eastern Time on April 29, 2022. Callers wishing to participate may call toll-free by dialing 844-200-6205. The number for international participants is (929) 526-1599. The conference ID number is 524033.

9

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Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com. An audio replay of the live webcast is expected to be available by the evening of April 29, 2022 on the Investor Relations section of SouthStateBank.com.

SouthState Corporation is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the Company’s nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas and Virginia. The Bank also serves clients coast to coast through its correspondent banking division. Additional information is available at SouthStateBank.com.

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###

Non-GAAP Measures

Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures. Management believes that these non-GAAP measures provide additional useful information, which allows readers to evaluate the ongoing performance of the Company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) | ​ | Three Months Ended | ​
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP) | ​ | Mar. 31, 2022 | ​ | ​ | Dec. 31, 2021 | ​ | ​ | Sep. 30, 2021 | ​ | ​ | Jun. 30, 2021 | ​ | ​ | Mar. 31, 2021 | ​
Net income (GAAP) | ​ | $ | 100,329 | ​ | ​ | $ | 106,846 | ​ | ​ | $ | 122,788 | ​ | ​ | $ | 98,960 | ​ | ​ | $ | 146,949 | ​
(Recovery) provision for credit losses | ​ | ​ | (8,449) | ​ | ​ | ​ | (9,157) | ​ | ​ | ​ | (38,903) | ​ | ​ | ​ | (58,793) | ​ | ​ | ​ | (58,420) | ​
Tax provision | ​ | ​ | 27,084 | ​ | ​ | ​ | 28,272 | ​ | ​ | ​ | 30,821 | ​ | ​ | ​ | 28,600 | ​ | ​ | ​ | 41,043 | ​
Merger-related costs | ​ | ​ | 10,276 | ​ | ​ | ​ | 6,645 | ​ | ​ | ​ | 17,618 | ​ | ​ | ​ | 32,970 | ​ | ​ | ​ | 10,009 | ​
Extinguishment of debt costs | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | 11,706 | ​ | ​ | ​ | — | ​
Securities gains | ​ | ​ | — | ​ | ​ | ​ | (2) | ​ | ​ | ​ | (64) | ​ | ​ | ​ | (36) | ​ | ​ | ​ | — | ​
Pre-provision net revenue (PPNR) (Non-GAAP) | ​ | $ | 129,240 | ​ | ​ | $ | 132,604 | ​ | ​ | $ | 132,260 | ​ | ​ | $ | 113,407 | ​ | ​ | $ | 139,581 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average asset balance (GAAP) | ​ | $ | 42,946,332 | ​ | ​ | $ | 41,359,708 | ​ | ​ | $ | 40,593,766 | ​ | ​ | $ | 39,832,752 | ​ | ​ | $ | 38,245,410 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
PPNR ROAA | ​ | ​ | 1.22 | % | ​ | ​ | 1.27 | % | ​ | ​ | 1.29 | % | ​ | ​ | 1.14 | % | ​ | ​ | 1.48 | %

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) | ​ | Three Months Ended | ​
CORE NET INTEREST INCOME (NON-GAAP) | ​ | Mar. 31, 2022 | ​ | ​ | Dec. 31, 2021 | ​ | ​ | Sep. 30, 2021 | ​ | ​ | Jun. 30, 2021 | ​ | ​ | Mar. 31, 2021 | ​
Net interest income (GAAP) | ​ | $ | 261,474 | ​ | ​ | $ | 258,104 | ​ | ​ | $ | 259,986 | ​ | ​ | $ | 253,130 | ​ | ​ | $ | 261,998 | ​
Less: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total accretion on acquired loans | ​ | ​ | 6,741 | ​ | ​ | ​ | 7,707 | ​ | ​ | ​ | 5,243 | ​ | ​ | ​ | 6,292 | ​ | ​ | ​ | 10,416 | ​
Total deferred fees on PPP loans | ​ | ​ | 983 | ​ | ​ | ​ | 5,655 | ​ | ​ | ​ | 16,369 | ​ | ​ | ​ | 14,232 | ​ | ​ | ​ | 20,402 | ​
Core net interest income (Non-GAAP) | ​ | $ | 253,750 | ​ | ​ | $ | 244,742 | ​ | ​ | $ | 238,374 | ​ | ​ | $ | 232,606 | ​ | ​ | $ | 231,180 | ​

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​
(Dollars in thousands, except per share data) | ​ | Mar. 31, | ​ | ​ | Dec. 31, | ​ | ​ | Sep. 30, | ​ | ​ | Jun. 30, | ​ | ​ | Mar. 31, | ​
RECONCILIATION OF GAAP TO NON-GAAP | ​ | 2022 | ​ | ​ | 2021 | ​ | ​ | 2021 | ​ | ​ | 2021 | ​ | ​ | 2021 | ​
Adjusted Net Income (non-GAAP) (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (GAAP) | ​ | $ | 100,329 | ​ | ​ | $ | 106,846 | ​ | ​ | $ | 122,788 | ​ | ​ | $ | 98,960 | ​ | ​ | $ | 146,949 | ​
Securities gains, net of tax | ​ | ​ | — | ​ | ​ | ​ | (2) | ​ | ​ | ​ | (51) | ​ | ​ | ​ | (28) | ​ | ​ | ​ | — | ​
PCL - NonPCD loans and UFC, net of tax | ​ | ​ | 13,492 | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​
Merger and branch consolidation/acq. expense, net of tax | ​ | ​ | 8,092 | ​ | ​ | ​ | 5,255 | ​ | ​ | ​ | 14,083 | ​ | ​ | ​ | 25,578 | ​ | ​ | ​ | 7,824 | ​
Extinguishment of debt cost, net of tax | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | 9,081 | ​ | ​ | ​ | — | ​
Adjusted net income (non-GAAP) | ​ | $ | 121,913 | ​ | ​ | $ | 112,099 | ​ | ​ | $ | 136,820 | ​ | ​ | $ | 133,591 | ​ | ​ | $ | 154,773 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted Net Income per Common Share - Basic (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings per common share - Basic (GAAP) | ​ | $ | 1.40 | ​ | ​ | $ | 1.53 | ​ | ​ | $ | 1.75 | ​ | ​ | $ | 1.40 | ​ | ​ | $ | 2.07 | ​
Effect to adjust for securities gains | ​ | ​ | — | ​ | ​ | ​ | (0.00) | ​ | ​ | ​ | (0.00) | ​ | ​ | ​ | (0.00) | ​ | ​ | ​ | — | ​
Effect to adjust for PCL - NonPCD loans and UFC, net of tax | ​ | ​ | 0.19 | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​
Effect to adjust for merger and branch consol./acq expenses, net of tax | ​ | ​ | 0.12 | ​ | ​ | ​ | 0.08 | ​ | ​ | ​ | 0.20 | ​ | ​ | ​ | 0.36 | ​ | ​ | ​ | 0.11 | ​
Effect to adjust for extinguishment of debt cost | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | 0.13 | ​ | ​ | ​ | — | ​
Adjusted net income per common share - Basic (non-GAAP) | ​ | $ | 1.71 | ​ | ​ | $ | 1.61 | ​ | ​ | $ | 1.95 | ​ | ​ | $ | 1.89 | ​ | ​ | $ | 2.18 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted Net Income per Common Share - Diluted (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings per common share - Diluted (GAAP) | ​ | $ | 1.39 | ​ | ​ | $ | 1.52 | ​ | ​ | $ | 1.74 | ​ | ​ | $ | 1.39 | ​ | ​ | $ | 2.06 | ​
Effect to adjust for securities gains | ​ | ​ | — | ​ | ​ | ​ | (0.00) | ​ | ​ | ​ | (0.00) | ​ | ​ | ​ | (0.00) | ​ | ​ | ​ | — | ​
Effect to adjust for PCL - NonPCD loans and UFC, net of tax | ​ | ​ | 0.19 | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​
Effect to adjust for merger and branch consol./acq expenses, net of tax | ​ | ​ | 0.11 | ​ | ​ | ​ | 0.07 | ​ | ​ | ​ | 0.20 | ​ | ​ | ​ | 0.35 | ​ | ​ | ​ | 0.11 | ​
Effect to adjust for extinguishment of debt cost | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | 0.13 | ​ | ​ | ​ | — | ​
Adjusted net income per common share - Diluted (non-GAAP) | ​ | $ | 1.69 | ​ | ​ | $ | 1.59 | ​ | ​ | $ | 1.94 | ​ | ​ | $ | 1.87 | ​ | ​ | $ | 2.17 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted Return on Average Assets (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on average assets (GAAP) | ​ | ​ | 0.95 | % | ​ | ​ | 1.02 | % | ​ | ​ | 1.20 | % | ​ | ​ | 1.00 | % | ​ | ​ | 1.56 | %
Effect to adjust for securities gains | ​ | ​ | — | % | ​ | ​ | (0.00) | % | ​ | ​ | (0.00) | % | ​ | ​ | (0.00) | % | ​ | ​ | — | %
Effect to adjust for PCL - NonPCD loans and UFC, net of tax | ​ | ​ | 0.13 | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | %
Effect to adjust for merger and branch consol./acq expenses, net of tax | ​ | ​ | 0.07 | % | ​ | ​ | 0.06 | % | ​ | ​ | 0.14 | % | ​ | ​ | 0.26 | % | ​ | ​ | 0.08 | %
Effect to adjust for extinguishment of debt cost | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | 0.09 | % | ​ | ​ | — | %
Adjusted return on average assets (non-GAAP) | ​ | ​ | 1.15 | % | ​ | ​ | 1.08 | % | ​ | ​ | 1.34 | % | ​ | ​ | 1.35 | % | ​ | ​ | 1.64 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted Return on Average Common Equity (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on average common equity (GAAP) | ​ | ​ | 8.24 | % | ​ | ​ | 8.84 | % | ​ | ​ | 10.21 | % | ​ | ​ | 8.38 | % | ​ | ​ | 12.71 | %
Effect to adjust for securities gains | ​ | ​ | — | % | ​ | ​ | (0.00) | % | ​ | ​ | (0.00) | % | ​ | ​ | (0.00) | % | ​ | ​ | — | %
Effect to adjust for PCL - NonPCD loans and UFC, net of tax | ​ | ​ | 1.11 | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | %
Effect to adjust for merger and branch consol./acq expenses, net of tax | ​ | ​ | 0.66 | % | ​ | ​ | 0.44 | % | ​ | ​ | 1.16 | % | ​ | ​ | 2.16 | % | ​ | ​ | 0.68 | %
Effect to adjust for extinguishment of debt cost | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | 0.77 | % | ​ | ​ | — | ​
Adjusted return on average common equity (non-GAAP) | ​ | ​ | 10.01 | % | ​ | ​ | 9.28 | % | ​ | ​ | 11.37 | % | ​ | ​ | 11.31 | % | ​ | ​ | 13.39 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on Average Common Tangible Equity (3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on average common equity (GAAP) | ​ | ​ | 8.24 | % | ​ | ​ | 8.84 | % | ​ | ​ | 10.21 | % | ​ | ​ | 8.38 | % | ​ | ​ | 12.71 | %
Effect to adjust for intangible assets | ​ | ​ | 5.73 | % | ​ | ​ | 5.79 | % | ​ | ​ | 6.65 | % | ​ | ​ | 5.74 | % | ​ | ​ | 8.45 | ​
Return on average tangible equity (non-GAAP) | ​ | ​ | 13.97 | % | ​ | ​ | 14.63 | % | ​ | ​ | 16.86 | % | ​ | ​ | 14.12 | % | ​ | ​ | 21.16 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted Return on Average Common Tangible Equity (2) (3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on average common equity (GAAP) | ​ | ​ | 8.24 | % | ​ | ​ | 8.84 | % | ​ | ​ | 10.21 | % | ​ | ​ | 8.38 | % | ​ | ​ | 12.71 | %
Effect to adjust for securities gains | ​ | ​ | — | % | ​ | ​ | (0.00) | % | ​ | ​ | (0.00) | % | ​ | ​ | (0.00) | % | ​ | ​ | — | %
Effect to adjust for PCL - NonPCD loans and UFC, net of tax | ​ | ​ | 1.11 | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | %
Effect to adjust for merger and branch consol./acq expenses, net of tax | ​ | ​ | 0.66 | % | ​ | ​ | 0.43 | % | ​ | ​ | 1.17 | % | ​ | ​ | 2.16 | % | ​ | ​ | 0.68 | %
Effect to adjust for extinguishment of debt cost | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | — | % | ​ | ​ | 0.77 | % | ​ | ​ | — | ​
Effect to adjust for intangible assets | ​ | ​ | 6.78 | % | ​ | ​ | 6.03 | % | ​ | ​ | 7.30 | % | ​ | ​ | 7.43 | % | ​ | ​ | 8.85 | %
Adjusted return on average common tangible equity (non-GAAP) | ​ | ​ | 16.79 | % | ​ | ​ | 15.30 | % | ​ | ​ | 18.68 | % | ​ | ​ | 18.74 | % | ​ | ​ | 22.24 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted Efficiency Ratio (4) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Efficiency ratio | ​ | ​ | 62.99 | % | ​ | ​ | 61.27 | % | ​ | ​ | 64.22 | % | ​ | ​ | 76.28 | % | ​ | ​ | 61.06 | %
Effect to adjust for merger and branch consolidation related expenses | ​ | ​ | (2.94) | % | ​ | ​ | (1.89) | % | ​ | ​ | (5.06) | % | ​ | ​ | (13.38) | % | ​ | ​ | (2.79) | %
Adjusted efficiency ratio | ​ | ​ | 60.05 | % | ​ | ​ | 59.39 | % | ​ | ​ | 59.16 | % | ​ | ​ | 62.88 | % | ​ | ​ | 58.26 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Book Value Per Common Share (3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Book value per common share (GAAP) | ​ | $ | 68.30 | ​ | ​ | $ | 69.27 | ​ | ​ | $ | 68.55 | ​ | ​ | $ | 67.60 | ​ | ​ | $ | 66.42 | ​
Effect to adjust for intangible assets | ​ | ​ | (27.25) | ​ | ​ | ​ | (24.65) | ​ | ​ | ​ | (24.57) | ​ | ​ | ​ | (24.53) | ​ | ​ | ​ | (24.40) | ​
Tangible book value per common share (non-GAAP) | ​ | $ | 41.05 | ​ | ​ | $ | 44.62 | ​ | ​ | $ | 43.98 | ​ | ​ | $ | 43.07 | ​ | ​ | $ | 42.02 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Equity-to-Tangible Assets (3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equity-to-assets (GAAP) | ​ | ​ | 11.20 | % | ​ | ​ | 11.45 | % | ​ | ​ | 11.72 | % | ​ | ​ | 11.78 | % | ​ | ​ | 11.88 | %
Effect to adjust for intangible assets | ​ | ​ | (4.15) | % | ​ | ​ | (3.76) | % | ​ | ​ | (3.87) | % | ​ | ​ | (3.94) | % | ​ | ​ | (4.02) | %
Tangible equity-to-tangible assets (non-GAAP) | ​ | ​ | 7.05 | % | ​ | ​ | 7.69 | % | ​ | ​ | 7.85 | % | ​ | ​ | 7.84 | % | ​ | ​ | 7.86 | %

Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications had no impact on net income or equity as previously reported.

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Footnotes to tables:

(1) | Includes loan accretion (interest) income related to the discount on acquired loans of $6.7 million, $7.7 million, $5.2 million, $6.3 million, and $10.4 million, respectively, during the five quarters above.

(2) | Adjusted earnings, adjusted return on average assets, adjusted EPS, and adjusted return on average equity are non-GAAP measures and exclude the gains or losses on sales of securities, merger and branch consolidation related expense and initial PCL on nonPCD loans and unfunded commitments from acquisitions. Management believes that non-GAAP adjusted measures provide additional useful information that allows readers to evaluate the ongoing performance of the company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP. Adjusted earnings and the related adjusted return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger and branch consolidation related expense of $10.3 million, $6.6 million, $17.6 million, $33.0 million, and $10.0 million for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively; and (b) net securities gains of $2,000, $64,000, and $36,000 for the quarters ended December 31, 2021, September 30, 2021, and June 30, 2021, respectively; and (c) initial PCL on nonPCD loans and unfunded commitments acquired from ACBI of $17.1 million for the quarter ended March 31, 2022.

(3) | The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of Non-GAAP to GAAP" provide tables that reconcile non-GAAP measures to GAAP.

(4) | Adjusted efficiency ratio is calculated by taking the noninterest expense excluding branch consolidation cost and merger cost and amortization of intangible assets, divided by net interest income and noninterest income excluding securities gains (losses). The pre-tax amortization expenses of intangible assets were $8.5 million, $8.5 million, $8.5 million, $9.0 million, and $9.2 million, for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

(5) | The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period.

(6) | March 31, 2022 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed.

(7) | Loan data excludes mortgage loans held for sale.

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Cautionary Statement Regarding Forward Looking Statements

Statements included in this communication, which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on, among other things, management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and SouthState. Words and phrases such as “may,” “approximately,” “continue,” “should,” “expects,” “projects,” “anticipates,” “is likely,” “look ahead,” “look forward,” “believes,” “will,” “intends,” “estimates,” “strategy,” “plan,” “could,” “potential,” “possible” and variations of such words and similar expressions are intended to identify such forward-looking statements.

SouthState cautions readers that forward-looking statements are subject to certain risks, uncertainties and assumptions that are difficult to predict with regard to, among other things, timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: (1) economic downturn risk, potentially resulting in deterioration in the credit markets, inflation, greater than expected noninterest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential continued negative economic developments resulting from the Covid19 pandemic, or from federal spending cuts and/or one or more federal budget-related impasses or actions; (2) interest rate risk primarily resulting from the interest rate environment, rising interest rates, and their impact on the Bank’s earnings, including from the correspondent and mortgage divisions, housing demand, the market value of the bank’s loan and securities portfolios, and the market value of SouthState’s equity; (3) risks related to the merger and integration of SouthState and CSFL including, among others, (i) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized, (ii) the risk that the parties are unable to successfully integrate each party’s businesses into the other’s businesses, (iii) the amount of the costs, fees, expenses and charges related to the merger, and (iv) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (4) risks related to the merger and integration of SouthState and Atlantic Capital including, among others, (i) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized, (ii) the risk that the integration of Atlantic Capital’s operations into SouthState’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate Atlantic Capital’s businesses into SouthState’s businesses, (iii) the amount of the costs, fees, expenses and charges related to the merger, and (iv) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (5) risks relating to the continued impact of the Covid19 pandemic on the Company, including possible impact to the Company and its employees from contacting Covid19, and to efficiencies and the control environment due to the changing work environment and to our results of operations due to government stimulus and other interventions to mitigate the impact of the pandemic; (6) the impact of increasing digitization of the banking industry and movement of customers to on-line platforms, and the possible impact on the Bank’s results of operations, customer base, expenses, suppliers and operations; (7) controls and procedures risk, including the potential failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures; (8) potential deterioration in real estate values; (9) the impact of competition with other financial institutions, including pricing pressures (including those resulting from the CARES Act) and the resulting impact, including as a result of compression to net interest margin; (10) risks relating to the ability to retain our culture and attract and retain qualified people; (11) credit risks associated with an obligor’s failure to meet the terms of any contract with the bank or otherwise fail to perform as agreed under the terms of any loan-related document; (12) risks related to the ability of the company to pursue its strategic plans which depend upon certain growth goals in our lines of business; (13) liquidity risk affecting the Bank’s ability to meet its obligations when they come due; (14) risks associated with an anticipated increase in SouthState’s investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities SouthState desires to acquire are not available on terms acceptable to SouthState; (15) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (16) transaction risk arising from problems with service or product delivery; (17) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (18) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and including the impact of the CARES Act, the Consumer Financial Protection Bureau regulations, and the possibility of changes in accounting standards, policies, principles and practices, including changes in accounting principles relating to loan loss recognition (CECL); (19) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (20) reputation risk that adversely affects earnings or capital arising from negative public opinion; (21) cybersecurity risk related to the dependence of SouthState on internal computer systems and the technology of outside service providers, as well as the potential impacts of internal or external security breaches, which may subject the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (22) reputational and operational risks associated with environment, social and governance (ESG) matters, including the impact of recently issued proposed regulatory guidance and regulation relating to climate change; (23) greater than expected noninterest expenses; (24) excessive loan losses; (25) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the Atlantic Capital integration, and potential difficulties in maintaining relationships with key personnel; (26) reputational risk and possible higher than estimated reduced revenue from announced changes in the Bank’s consumer overdraft programs; (27) the risks of fluctuations in market prices for SouthState common stock that may or may not reflect economic condition or performance of SouthState; (28) the payment of dividends on SouthState common stock, which is subject to legal and regulatory limitations as well as the discretion of the board of directors of SouthState, SouthState’s performance and other factors; (29) ownership dilution risk associated with potential acquisitions in which SouthState’s stock may be issued as consideration for an acquired company; (30) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and

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integration of potential future acquisitions, whether involving stock or cash consideration; (31) major catastrophes such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including infectious disease outbreaks, such as the ongoing Covid19 pandemic, and the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on SouthState and its customers and other constituencies; (32) terrorist activities risk that results in loss of consumer confidence and economic disruptions; and (33) other factors that may affect future results of SouthState, as disclosed in SouthState’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by SouthState with the U.S. Securities and Exchange Commission (“SEC”) and available on the SEC’s website at http://www.sec.gov, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward-looking statements.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. SouthState does not undertake any obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

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