South State Corporation (NASDAQ: SSB) - which has bank branches in Gainesville and elsewhere in northeast Georgia - has released its 3rd Quarter Earnings report. Below are some of the highlights for the quarter:
- Operating earnings for 3Q improved to $27.2 million or $1.12 per share (diluted), up from $26.3 million or $1.09 per share for 2Q 2015
- Earnings per share (EPS) – diluted was $1.04 compared to $1.03 in 2Q 2015; and $0.80 per share in 3Q 2014, a 30% increase;
- Net income available to the common shareholders of $25.1 million improved by 30.1% from 3Q 2014 of $19.3 million;
- For the nine-months ended September 30, 2015, net income totaled $73.9 million compared to $53.1 million a year ago, a 39.2% increase; and
- Increased dividend paid to common shareholders by 19.0%, or $0.04 per share, since 3Q 2014
- Net loan growth (non-acquired loans exceeded acquired loan runoff) during third quarter was $86.7 million or 5.9% annualized
- Non-acquired loan growth totaled $206.3 million or 21.6% annualized growth; which
- Outpaced acquired loan runoff of $119.6 million
- Performance ratios during 3Q 2015 from 2Q 2015
- Operating return on average assets was 1.29%, a decline from 1.32%
- Operating return on average tangible equity improved to 16.92% from 16.90%
- Efficiency ratio rose to 64.4% from 63.2%
- Operating efficiency ratio rose to 61.7% from 61.2% (excludes one-time charges related to merger and conversion expenses in 2014 and branch consolidation and acquisition expenses in 2015)
- Balance sheet changes during 3Q 2015
- Goodwill increased by $20.7 million from the Bank of America branch acquisition
- OREO decreased $3.7 million to $31.4 million, due to primarily to the disposition of 49 properties during the quarter
- Noninterest bearing deposits increased by $82.3 million and interest bearing deposits increased by $328.1 million primarily from the Bank of America branch acquisition
- Shareholders’ equity increased $24.5 million to $1.048 billion
- Tangible equity to tangible assets declined to 8.14% from 8.56%, at June 30, 2015, due to the Bank of America branch acquisition
- Asset quality continues to improve
- Nonperforming assets (NPAs) declined by 8.5%, or $5.6 million, to $60.0 million
- NPAs to total assets improved to 0.71% from 0.81%
- Net charge offs on non-acquired loans were 0.09%, or $875,000, in 3Q 2015, down from 0.12%, or $1.1 million, in 2Q 2015
- Coverage ratio of ALLL on non-acquired non-performing loans improved to 147.1% from 141.0%
Quarterly Cash Dividend
The Board of Directors of South State Corporation has declared a quarterly cash dividend of $0.26 per share payable on its common stock. This per share amount is $0.01 per share, or 4.0% higher than the dividend paid in the immediately preceding quarter and is $0.04 per share, or 18.2%, higher than third quarter of 2014. The dividend will be payable on November 20, 2015 to shareholders of record as of November 13, 2015.
