South State Corp (NASDAQ: SSB) stock lost over 1.8% on 23rd October, 2018 (As of 10:50 AM GMT-4; Source: Google finance) after the company posted lower than estimates for the third quarter of FY 18. During the third quarter of 2018, the Durbin Amendment became effective for the Company and reduced noninterest income (Fees on deposit accounts) by approximately $4.8 million pre-tax. On an after-tax basis, the estimated impact was $3.8 million, or $0.10 per diluted share. SSB declared a quarterly cash dividend on October 18, 2018, of $0.36 per share payable on its common stock. This per share amount is higher by $0.01 per share, or 2.9%, compared to last quarter and $0.03 per share, or 9.1%, higher than the same quarter one year ago. The dividend will be payable on November 16, 2018 to shareholders of record as of November 9, 2018.
Moreover, At September 30, 2018, the Company’s total assets were $14.5 billion, a decrease of $44.3 million from June 30, 2018, and an increase of $3.4 billion, or 30.0% from September 30, 2017. During the third quarter of 2018, cash and cash equivalents decreased by $89.5 million. This was the result of a decline in total deposits, federal funds purchased and securities sold under repurchase agreements on the liability side, and total loans increasing by $78.8 million, or 2.9% annualized, as nonacquired loans increased by $408.9 million, and acquired loans declined by $329.7 million. Partially offsetting this net use of cash was a decline in investment securities by $26.7 million during the third quarter of 2018. The Company’s book value per common share increased to $64.49 per share at September 30, 2018, compared to $63.77 at June 30, 2018 and $55.79 at September 30, 2017. The increase in capital during the third quarter of 2018 of $19.8 million was related to net income totaling $47.1 million, partially offset by $12.9 million dividend paid to shareholders, and an increase in unrealized losses within the securities portfolio causing AOCI to reduce capital by $8.4 million.
SSB in the third quarter of FY 18 has reported the adjusted earnings per share of $1.33, missing the analysts’ estimates for the adjusted earnings per share of $1.44. The company had reported the adjusted revenue growth of 35.9 percent to $160.3 million in the third quarter of FY 18, missing the analysts’ estimates for revenue of $167.1 million.