UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 7, 2020 (
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Item 8.01 Other Events
On December 4, 2020, South State Bank, N.A. (the “Bank”), a wholly-owned subsidiary of South State Corporation (together with its subsidiaries, the “Company”), terminated $700 million of interest rate swap agreements with a remaining weighted average maturity of approximately 3 years. These interest rate swaps, which were entered into in March and June of 2019, were used to hedge the cash flows from $700 million in three-month Federal Home Loan Bank (“FHLB”) advances that were continually renewed and repriced against future interest rate increases. The interest rate swaps were structured to effectively fix the rate of the $700 million in FHLB advances at a weighted average rate of 2.24% over the life of the interest rate swap agreements. The Company made the decision to repay the FHLB advances and terminate the interest rate swap agreements due to the current low interest rate environment and the expectation that interest rates will remain low during the average life of these interest rate swaps. As a result, in December 2020, the Company recorded through earnings a prepayment penalty of $56 thousand on the repayment of the FHLB advances and termination costs of $40.8 million related to the interest rate swaps. Prior to the termination of the swaps, changes in the value of the interest rate swaps were recorded through accumulated other comprehensive income on the Company’s consolidated financial statements.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SOUTH STATE CORPORATION | ||
(Registrant) | ||
By: | /s/ William E. Matthews, V | |
William E. Matthews, V | ||
Senior Executive Vice President and | ||
Date: December 7, 2020
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