CenterState Bank : First Quarter 2020 Earnings Call Presentation

Earnings Call

1Q 2020

Friday, April 24, 2020

1

Forward Looking Statements

Information in this communication, other than statements of historical facts, may constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about the benefits of the proposed merger of South State and CenterState, including future financial and operating results (including the anticipated impact of the transaction on South State's and CenterState's respective earnings and tangible book value), statements related to the expected timing of the completion of the merger, the combined company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Forward-looking statements may be identified by terminology such as "may," "will," "should," "scheduled," "plans," "intends," "anticipates," "expects," "believes," "estimates," "potential," or "continue" or negatives of such terms or other comparable terminology.

All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of South State or CenterState to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, among others, (1) 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, (2) disruption to the parties' businesses as a result of the announcement and pendency of the merger, (3) the occurrence of any event, change or other

circumstances that could give rise to the termination of the merger agreement, (4) the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that Clickthe parties are otherwise unabletoto successfullyeditintegrate each party's businessesMasterinto the other's businesses, (5) thetitlefailure to obtain the necessarystyleapprovals by the shareholders of South State or CenterState, (6) the amount of the costs, fees, expenses and charges related to the merger, (7) the ability by each of South State and CenterState to obtain required governmental approvals of the

merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction), (8) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger, (9) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the merger, (10) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (11) the dilution caused by South State's issuance of additional shares of its common stock in the merger, (12) a material adverse change in the financial condition of South State or CenterState, (13) general competitive, economic, political and market conditions, (14) major catastrophes such as earthquakes, floods or other natural or human disasters, including infectious disease outbreaks, including the recent outbreak of a novel strain of coronavirus, a respiratory illness, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on South State or CenterState and its customers and other constituencies, and (15) other factors that may affect future results of CenterState and South State including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors which could affect future results of CenterState and South State can be found in the registration statement onEditForm S-4, as amended,Masteras well as South State'stextAnnual Reportstyleson Form 10-K, as amended, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and CenterState's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC and available on the SEC's website at

http://www.sec.gov. CenterState and South State disclaim any obligation and do not intend to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

Important Information About the Merger and Where to Find It

South State has filed a registration statement on Form S-4 and an amendment thereto with the SEC to register the shares of South State's common stock that will be issued to CenterState's shareholders in connection with the transaction. The registration statement contains a joint proxy statement of South State and CenterState that also constitutes a prospectus of South State. The registration statement on Form S-4, as amended, was declared effective by the SEC on April 20, 2020, and South State and CenterState commenced mailing the definitive joint proxy statement/prospectus to their respective shareholders on or about April 20, 2020. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS (AS WELL ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC by South State or CenterState through the website maintained by the SEC at http://www.sec.gov or by contacting the investor relations department of South State or CenterState at:

South State Corporation	CenterState Bank Corporation
520 Gervais Street	1101 First Street South, Suite 202
Columbia, SC 29201-3046	Winter Haven, FL 33880
Attention: Investor Relations	Attention: Investor Relations
[phone]	[phone]

Participants in Solicitation

South State, CenterState and certain of their directors and executive officers may be deemed participants in the solicitation of proxies from the shareholders of each of South State and CenterState in connection with the merger. Information regarding the directors and executive officers of South State and CenterState and other persons who may be deemed participants in the solicitation of the shareholders of South State or of CenterState in connection with the merger is contained in the definitive joint proxy statement/prospectus related to the proposed merger. Information about the directors and executive officers of South State and their ownership of South State common stock can also be found in South State's definitive proxy statement in connection with its 2019 annual meeting of shareholders, as filed with the SEC on March 6, 2019, and other documents subsequently filed by South State with the SEC, including, but not limited to, Amendment No. 1 to South State's Annual Report on Form 10-K/A, as filed with the SEC on March 6, 2020. Information about the directors and executive officers of CenterState and their ownership of CenterState common stock can also be found in CenterState's definitive proxy statement in connection with its 2020 annual meeting of shareholders, as filed with the SEC on March 10, 2020, and other documents subsequently filed by CenterState with the SEC. Additional information regarding the interests of such participants is included in the definitive joint proxy statement/prospectus and other relevant documents regarding the merger filed with the SEC.

2

Customers

• Began offering loan payment Masterdeferrals,titlefee stylewaivers for

ATMs and CD withdrawals

• Increased mobile deposit

COVID-19 Response

Employees

• Over 90% of non-branch employeesClickworkingto remotelyedit

• Increased paid leave for employees unable to work

due to lack of childEditor Master text limitsstyles dependent care

• Branches restricted to drive through traffic
• Additional compensation for employees with essential in- office jobs

• PPP loan ramp up for our small business clients

3

COVID-19 Impact

• Branches limited to drive-through beginning 3/20
• 12 branches without drive-through open by appointment only beginning 3/20
• Over 90% of non-branch employees working from home

Click to

Alabama

Shelter in Place until 4/30 10 of 10 branches open

title style

Georgia

Shelter in Place until 4/30 18 of 18 branches open

Florida

Shelter in Place until 4/30 120 of 121 branches open

Information as of 4/21/20	4
Stay at home orders for various States per New York Times

Merger Update

Progress

Next Steps

1/28-2/9	Town Halls with Executive Leadership
reached ~50% of employees
February	Integration Kickoff and Team selection
to edit Master title style
Weekly	Integration Team Meetings
Weekly	Executive Team Meetings
March	All Regulatory Applications Filed
Edit Master text styles
3/5/20	Core Provider Selected
3/5/20	Named Line of Business and Market Leaders
4/20/20	S-4 Became Effective

5/21/20	Shareholder Vote
3Q 20	Anticipated Close
2Q 21	Expected System Conversion

5

Credit Update

6

Payroll Protection Program (PPP)

• Secured SBA PPP funding for nearly 7,000 loans totaling $1.1
  billionClick(1) to edit Master title style
• Funding for PPP through liquidity on hand, deposit growth,

and potential use of FRB PPP facility

Edit Master text styles

• Capacity to accommodate additional demand should program be expanded

(1) As of 4/16/20

7

Loan Portfolio Summary

• Actively managing exposures in Lodging, Restaurants, and
  RetailClick to edit Master title style
• Less than 1% total exposure to SNC's, Leveraged Lending, Oil

& Gas, and Aviation

Edit Master text styles

• 99% of loan portfolio is in footprint
• Granular loan portfolio with average loan size of $230,000

8

Industry Exposures(1)

Consumer

Click10% to edit Master titleSelected Industriesstyle

			(% of total loan portfolio)
Mortgage
Total		Lodging	$389	3.3%
21%
	Edit Master text styles
	Portfolio	Commercial
	69%	Restaurants	$307	2.6%
	$11.8 Billion
			Retail CRE	$1,632	13.8%

Dollars in millions, unless otherwise noted	9
(1) Excludes held-for-sale loans

Loan Deferral Requests*

Consumer

$119

•	Proactively offered to customers
•	$1.9 billion in customer deferrals in process	Commercial	Mortgage
		$198

Click to edit Master title$1,551 style

• Standard deferral is 90 days principal and interest

Daily Request Volume	Edit Master text styles
$200							$173
$150				$148		$132
			$116	$129			$119
				$105				$109
							$96	$106	$100
$100
								$77		$77	$75
				$38					$47	$47		$56
$50			$30
			$20						$27
$4	$2	$2	$15	$2				$14		$2

$-

Dollars in millions, unless otherwise noted	10
* Information as of April 17th, 2020

Line of Credit Usage Has Been Relatively Stable

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Consumer		Commercial

45.4%	44.6%	Master

58.8%57.4%

text

54.6%55.4%

41.2%42.6%

Dec 2019 -	March 2020	-				Dec 2019 -	March 2020 -
Consumer	Consumer					Commercial	Commercial
				Drawn		Available

11

Lodging Portfolio

Click to edit MasterBest Westerntitlenationalstyle
	Marriott $14	Other
• 54% weighted average loan to value	$24	brands
		$42
• Underwriting policy is 65% loan to value; 1.5x DSC	Boutique	Choice $67
Edit Master text styles
based on a 20-year amortization	$30
• Lodging is $389 million or 3.3% of loan portfolio	Wyndham $37
		Waterfront
• Average loan amount $1.7 million		resorts $69
	Hilton	$44

• 69% of portfolio under deferral(1)

• Top 3 MSA's: Tampa, Jacksonville, Atlanta

IHG $62

Dollars in millions, unless otherwise noted	12
(1) Includes approved/processed and considered deferrals

Restaurant Portfolio

	CDL $11
Click to edit Master title style
• 55% weighted average loan to value	Non-RE
• Underwriting policy is 75% loan to value; 1.4x DSC	Secured $43
	Occupied Real
Edit Master text styles
based on a 20-year amortization		Owner
• Restaurant is $307 million or 2.6% of loan portfolio		Estate $144
• Average loan amount $453 thousand	Non-Owner
Occupied Real

Estate $109

• 35% of portfolio under deferral(1)

Dollars in millions, unless otherwise noted	13
(1) Includes approved/processed and considered deferrals

Retail CRE Portfolio

Click to edit Master title style	CDL $27
• 58% weighted average loan to value

• Underwriting policy is 75% loan to value; 1.3x DSC

based on a 20-year amortizationEdit Master text styles	Owner
• Retail CRE is $1.63 billion or 13.8% of loan portfolio	Non-Owner	Occupied Real
Estate $298
Occupied Real

Estate $1,308

• Average loan amount $1.0 million
• 23% of portfolio under deferral(1)

Dollars in millions, unless otherwise noted	14
(1) Includes approved/processed and considered deferrals

1Q20 Financial Highlights

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Highlights - Linked Quarter

		4Q19	1Q20
	GAAP
	Net Income	$71.1	$35.4
	EPS (Diluted)	$0.56	$0.28
	Return on Average Assets	1.63%	0.82%
	Non-GAAP*
	Return on Average Tangible Equity	18.77%	9.87%
	Non-GAAP, Adjusted*
	Net Income	$72.2	$35.5
	EPS	$0.57	$0.28
	Return on Average Assets	1.66%	0.82%
	Return on Average Tangible Equity	19.05%	9.88%
	Cash dividend per common share	$0.11	$0.14

* Adjusted is a Non-GAAP financial measure that excludes the impact of merger related expenses,	16
deferred tax asset write down, tax benefit adjustments (CARES Act) and AFS securities gains or losses.

Net Interest Margin

$175.0

$145.0

$115.0

$85.0

$55.0

$25.0

Click to$158edit.7 Master$154.9$title157.9 style$153.4

	$143.1	$141.4	$139.8	$137.5
$114.2	Edit Master text styles
$101.3
4.40%	4.45%	4.19%	4.25%	4.17%

1Q 2019	2Q 2019	3Q 2019	4Q 2019	1Q 2020
		Net Interest Margin*	NII - Excluding Accretion	Net interest Income

10.00%

9.00%

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

Dollars in millions	17
* Net interest margin is tax equivalent.

Average Interest Earning Assets

Average Balance	% of Earning	4Q 2019	% of Earning	1Q 2020	Net
	Assets		Assets		Change
Short-Term Investments	4.6%	$682	4.5%	$674	($8)
Investment Securities	13.7%	2,025	14.2%	2,116	91
Loans - Acquired	42.3%	6,254	39.6%	5,887	(367)
Loans - Non-acquired	39.4%	5,819	41.7%	6,196	377
Total Loans	81.7%	$12,073	81.2%	$12,083	$10
Total Interest Earning Assets		$14,780		$14,873	$93

Dollars in millions
Quarterly averages	18
Loans include loans held-for-sale

Acquired Loans

15%
		13.1%
12%	10.4%
					9.7%				9.0%
9%			8.8%
							7.4%
6%			Edit Master text styles
1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	4Q19	1Q20

Accretion / Total Interest Income

Income Statement	Contractual	Accretion	Total Income	Contractual	Total Yield
(Yields Annualized)	Interest	Yield
1Q 2020	$	72.3	$	15.9	$	88.2	4.95%	6.03%
4Q 2019	$	78.8	$	18.1	$	96.9	5.00%	6.15%

Dollars in millions

19

Acquired Loan Portfolio

As of March 31, 2020

		Discount(A)	Carrying
Acquired Loans	UPB	Value	Percentage
Credit Deteriorated	$187.0	($36.7)	$150.3	19.6%
Non-Credit Deteriorated	5,589.5	(44.5)	5,545.0	0.8%
Total	$5,776.5	($81.2)	$5,695.3	1.4%

(A) Represents a non-credit discount

Dollars in millions

20

1st Quarter 2020 Highlights

Non-Interest Income	4Q 2019	1Q 2020	Net Change
Correspondent banking revenue	$	23.3	$	27.8	$	4.5
Mortgage banking revenue		9.1		11.0		1.9
SBA revenue		1.8		1.4		(0.4)
Wealth management related revenue		0.9		0.8		(0.1)
Service charges on deposit accounts		8.0		7.5		(0.5)
Debit, prepaid, ATM and merchant card related fees		3.1		3.7		0.6
Other non-interest income		4.1		3.6		(0.5)
Total Non-Interest Income	$	50.3	$	55.8	$	5.5

Dollars in millions

21

1st Quarter 2020 Highlights (continued)

	Non-Interest Expense	4Q 2019	1Q 2020		Net Change
	Salaries, wages and employee benefits	$	73.0	$	77.1	$	4.1
	Occupancy expense		7.3		7.3			-
	Depreciation of premises and equipment		4.2		4.1			(0.1)
	Marketing expenses		1.9		2.2			0.3
	Data processing expenses		5.2		5.6			0.4
	Legal, auditing and other professional fees		2.9		2.7			(0.2)
	Bank regulatory related expenses		0.7		1.8			1.1
	Debit, ATM and merchant card related expenses		1.4		1.6			0.2
	Credit related expenses		0.9		0.9			-
	Amortization of intangibles		4.6		4.5			(0.1)
	Impairment on bank property held for sale		0.8		-			(0.8)
	Credit loss expense for unfunded commitments		-		1.0			1.0
	Other non-interest expenses		10.4		10.9			0.5
	Total Adjusted* Non-Interest Expense	$	113.3	$	119.7	$	6.4
	Merger-related expenses		0.2		3.1			2.9
	Total Non-Interest Expense	$	113.5	$	122.8	$	9.3

Dollars in millions	22
* Adjusted is a Non-GAAP financial measure that excludes the impact of merger related expenses.

Efficiency Ratio

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

58.7%	61.9%	62.3%
			58.5%
52.3%			54.3%	54.9%
51.7%	51.9%	52.1%

Q1 2019		Q2 2019	Q3 2019	Q4 2019	Q1 2020
		Efficiency Ratio*		Adjusted Efficiency Ratio*

* Efficiency and Adjusted Efficiency ratios are Non-GAAP financial measures. Efficiency ratio is defined as Efficiency Ratio is	23
defined as follows: [non-interest expense - nonrecurring expense] / [net interest income (fully tax equivalent) + non-

interest income - nonrecurring income]; Adjusted efficiency ratio also excludes the impact of merger related expenses and amortization of intangibles and is fully tax equivalent.

Tangible Book Value

$12.08$12.17

$12.76$12.68

$12.32

Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020

24

John C. Corbett

Chief Executive Officer

CenterState Bank

Corporation

Stephen D. Young

Chief Operating Officer

CenterState Bank

Corporation

William E. Matthews V

Chief Financial Officer

CenterState Bank

Corporation

Richard Murray IV

Chief Executive Officer

CenterState Bank

Dan Bockhorst

Chief Credit Officer

CenterState Bank