SouthState Q2 2020 Earnings Report
Key Takeaways
South State Corporation reported a consolidated net loss of ($84.9) million, or ($1.96) per diluted common share, for the second quarter of 2020. The net loss was primarily due to the initial provision for credit losses on acquired non-purchase credit deteriorated (NonPCD) loans and merger-related costs. However, the company highlighted strong underlying operating performance, including record revenues on a combined historical basis.
Closed the merger of equals with CenterState Bank Corporation on June 7th.
Reported a net loss of ($85 million) after recording a total loan loss provision expense of $151 million and $40 million in merger-related costs.
Pre-Provision Net Revenue (PPNR) was $157 million, for a 1.68% PPNR ROAA on a combined historical basis.
Credit metrics remained strong with minimal net charge-offs of $101,000, or 0.00% annualized.
SouthState
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SouthState Revenue by Segment
Forward Guidance
The company is now fully focused on the integration and conversion aspects of the combined company and expects the core conversion to occur in the second quarter of 2021.