Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — Sandler O'Neill's 2007 Financial Services Conference
36 slides from Southstate Bank's conference presentation, Nov 13, 2007
Slide 1: SCBT Financial Corporation – Sandler O'Neill 2007 Financial Services Conference
SCBT Financial Corporation Sandler O’Neill’s 2007 Financial Services Conference November 13, 2007
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements: Statements contained in this presentation, which are not historical facts, are forward-looking statements. In addition, SCBT Financial Corporation (SCBT) through its senior management or directors may from time to time make forward-looking public statements concerning m
Slide 3: Experienced Management Team
3 Experienced Management Team Years of Current Name Experience Position Robert R. Hill, Jr. 12/18 CEO John C. Pollok 12/18 COO & CFO Joe E. Burns 7/30 CCO Richard C. Mathis 7/24 CRO John F. Windley 5/31 President SCBT Thomas S. Camp 9/32 President SCBT Piedmont
Slide 4: SCBT Financial Corporation Profile
4 $2.48 billion bank founded in 1934 45 financial centers in SC; 5 offices in NC 16 S.C. Counties; 1 NC County Opened 15 new offices in the last 5 years Includes the impact of TSB Financial Corporation during the fourth quarter of 2007 ($210.0 million in assets) SCBT Financial Corporation Profile
Slide 5: SCBT Financial Corporation Profile
5 SCBT Financial Corporation Profile Third largest independent commercial bank headquartered in South Carolina Eighth largest commercial bank in South Carolina1 Operates in 5 of the top 50 income and population growth MSA’s in the southeastern United States.2 Mission: To be the Carolina’s premier co
Slide 6: At A Glance
6 At A Glance Closing Price as of 11-8-2007 $31.36 9-30-07 Earnings per share $ 0.61 Book Value (9-30-2007) $19.07 Price / Earnings (TTM) 13.7x Market Capitalization at 11-8-2007 ~$289MM Listed on the NASDAQ Global Select Market
Slide 7: What Makes Us Successful?
7 What Makes Us Successful? Customers Employees Community Involvement Management/Board Business Model
Slide 8: Business Model
8 Business Model Community Banking Local Decisions Centralized Processes Experienced Relationship Managers & Employees “South Carolina’s Bank”
Slide 9: YTD 2007 Accomplishments
9 YTD 2007 Accomplishments Diluted EPS of $1.78 – Up 9.0% YOY Margin expansion – during the past two quarters Opened banking locations in Myrtle Beach, Charleston and Lexington markets Non-interest income – up 16.6% YOY Deposit campaign – raised $60 million in low cost funding New accounts – 13,500
Slide 10: Deposit Market Share
10 Deposit Market Share Deposits Market Rank Institution ($000) Share Branches 1 Wachovia (NC) $11,617,048 18.13 % 152 2 Bank of America (NC) 7,169,929 11.19 122 3 BB&T (NC) 7,011,559 10.94 122 4 South Financial Group (SC) 5,370,231 8.38 79 5 First Citizens Bancorp (SC) 4,768,136 7.44 163 6 Synovus
Slide 11: Selected MSA Statistics and SCBT Financial Center Locations
11 Selected MSA Statistics SCBT Financial Center Locations Sources: SunTrust Robinson Humphrey, Inc.; Keefe, Bruyette & Woods; Federal Deposit Insurance Corporation Charlotte, NC Savannah, GA Augusta, GA Wilmington, NC
Slide 12: Demographics – Population & Income
12 Demographics – Population & Income : Projected Change in Population 2006-2011 (%) Projected Median Household Income 2011 ($) Source: SNL Financial & Keefe Bruyette & Woods Population and median household income are deposit weighted 10 7.5 5 2.5 0 9 6.7 $60,000, $50,000 40,000 30,000 20,000 10,000
Slide 13: Projected Population Growth 2006-2011
13 Projected Population Growth 2006-2011 Less than 0% 0% - 5% 5% - 10% Greater than 10% SCBT Financial Center Locations Source: Keefe, Bruyette & Woods National Average: 6.7%
Slide 14: Transaction Overview – The Scottish Bank
14 SCBT Financial Corporation The Scottish Bank Building The Carolinas' Premier Community Bank Transaction Overview August 30, 2007
Slide 15: Transaction Overview – Summary Terms
15 Transaction Overview – Summary Terms Consideration Mix: 939,372 shares of SCBT common stock issued Fixed exchange ratio: 0.993x $9.4 million in aggregate cash consideration (includes cash-out value of options) Approximately 85% stock / 15% cash (1) Based on consideration mix and SCBT’s 10-day ave
Slide 16: Enhances Overall Banking Franchise
16 Enhances Overall Banking Franchise urther positions SCBT in high-growth, demographically-attractive markets (1) Based on FDIC deposit data. 2006 data is pro forma for the acquisition of TSB Financial Corporation. Dollar amounts in thousands.(2) SCBT Financial Corporation moved from it’s former he
Slide 17: Results in Top Deposit Market Share in the Charlotte MSA
17 Results in Top 10 Deposit Market Share in the Charlotte MSA Population: 1.6 million; Total deposits: $94.0 billion Historical population growth of 22% - approximately 2.5x the national average 5th highest median household income in the Southeast Branch Map Deposit Market Share – Charlotte MSA (1)
Slide 18: North Carolina Banking Franchise Offers Growth Potential
18 North Carolina Banking Franchise Offers Significant Organic and Acquisitive Growth Potential Only 5 banks under $10 Billion in Assets operate in both North and South Carolina (1) Note: Dollar values in thousands. (1) Includes SCBT Financial Corporation. (2) The “Big 4” consists of Bank of America
Slide 19: Sound Balance Sheet
19 SOUND BALANCE SHEET YTD YTD 2005 2006 9/30/07 9/30/06 Non-Performing Assets / Total Loans & OREO* 0.30% 0.30% 0.30% 0.27% Allow. Loan Losses / Total Loans* 1.30% 1.29% 1.29% 1.29% Allow. Loan Losses / Non-Performing Loans* 469% 492% 495% 527% Net Charge-offs / Average Loans 0.11% 0.16% 0.12% 0.17
Slide 20: Soundness – Net Charge-offs / Average Total Loans
20 SOUNDNESS Net Charge-offs / Average Total Loans Source: BHC Performance Report (3Q not yet available) 0.16% .11% 0.09% 0.16% 0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 2002 2003 2004 2005 2006 1Q ’07 2Q ‘07 3Q ’07 SCBTFC SCBTFC (inc. NSF & AOP) Peers
Slide 21: Consistent Profitability
21 CONSISTENT PROFITABILITY Per share data reflect a ten percent stock dividend distributed on December 6, 2002, a five percent stock dividend distributed on January 1, 2005 and a five percent stock dividend distributed on March 23, 2007. $21,000 $18,000 $15,000 $12,000 $9,000 $6,000 $3,000 $0 1998
Slide 22: Return on Average Equity
Return on Average Equity Return on Avg. Equity Return on Avg. Tangible Equity 2002 2003 2004 2005 2006 3Q 2007 14.09% 13.72% 12.20% 13.19% 15.20% 12.72% 16.54% 13.13% 16.52% 20.00% 16.00% 12.00% 8.00% 4.00% 0.00%
Slide 23: Fee Income By Type
23 Fee Income By Type : 2004 2005 2006 9/30/07 Deposit Service Fees $11,854 $12,473 $13,377 $10,952 Secondary Mtg. Orig Fees 3,892 5,054 5,613 4,759 Wealth Management 1,422 1,695 2,148 1,971 Bankcard Services Income 1,690 2,647 3,422 3,067 Other * 2,026 1,986 2,149 2,013 Total Non-interest Income $2
Slide 24: Year-Over-Year EPS Growth
24 Year-Over-Year EPS Growth Source: FTN Midwest Securities Corp. 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 Super Regional Banks Small Cap Banks Thrifts Regional Banks SCBT Financial Corporation 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35%
Slide 25: Performance Drivers – Net Interest Margin
25 PERFORMANCE DRIVERS Net Interest Margin – SCBT / Peer Source: BHC Performance Report (3Q not yet available) 4.12% 3.94% 3.99% 4.06% 5.00% 4.50% 4.00% 3.50% 3.00% 2002 2003 2004 2005 2006 1Q ’07 2Q ’07 3Q ’07 SCBTFC Peers
Slide 26: Checking Account Growth
26 Checking Account Growth 15% CAGR 13.3 16.4 17.6 2.5 2.9 3.4 2.5 13.5 10.8 14.2 11.0 2004 2005 2006 Sep-07 0 510 15 20 25 Number of New Checking Accounts (000’s)
Slide 27: Quality Growth – Total Assets
27 QUALITY GROWTH – TOTAL ASSETS 14.0% CAGR (in Millions) $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $2,400 1998 1999 2000 2002 2001 2003 2004 2005 2006 3Q 2007 $750 $872 $970 $1,025 $1,145 $1,198 $1,439 $1,926 $2,178 $2,267
Slide 28: Diversification – Loan Mix
28 DIVERSIFICATION Loan Mix As of September 30, 2007 Consumer Installment 6.7% Commercial & Industrial 13.2% Owner Occupied RE 41.5% Commercial RE 38.6%
Slide 29: Commercial Real Estate
29 Commercial Real Estate As of September 30, 2007 Commercial – Non Owner Occupied 11.8% Consumer Lot Loans 8.2% Construction / Development 18.6% Consumer Installment 6.70% Commercial & Industrial 13.20% Owner Occupied RE 41.50% Commercial RE 38.60%
Slide 30: Owner Occupied Real Estate
30 Owner Occupied Real Estate As of September 30, 2007 Consumer Installment 6.70% Commercial & Industrial 13.20% Owner Occupied RE 41.50% Commercial RE 38.60% Commercial – Owner Occupied 14.1% Consumer – Owner Occupied 1 st Lien 13.0% Other 6.4%
Slide 31: Growth – Total Deposits
31 GROWTH - Total Deposits 14.2% CAGR $1,800 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2002 2003 2004 2005 2006 3Q 2007 $898 $946 $1,174 $1,473 $1,707 $1,814 (in Millions)
Slide 32: Growth – Core Deposits
32 GROWTH – Core Deposits 13.2% CAGR $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2002 2003 2004 2005 2006 3Q 2007 $749 $812 $1,012 $1,204 $1,335 $1,418 (in Millions)
Slide 33: Operating Efficiency
33 OPERATING EFFICIENCY 50 45 40 35 30 34 41 45 2004 2005 2006 66.49% 66.30% 65.22% 70.00% 60.00% 50.00% 40.00% 30.00% Number of Branches Efficiency Ratio
Slide 34: Market Capitalization Over Ten Years
34 Market Capitalization Over Ten Years 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 98,806,244 $159,143,511 $132,396,639 $80,105,617 $120,586,067 $169,358,265 $217,693,785 $260,122,042 $284,589,548 $363,849,963 $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $35
Slide 35: Analyst Recommendations
35 Analyst Recommendations Analyst Sept. 2007 Recommendation FIG Partners OUTPERFORM FTN Midwest Securities Corp. BUY SunTrust Robinson Humphrey BUY Keefe, Bruyette, & Woods MARKET PERFORM Sandler, O’Neill & Partners HOLD
Slide 36: Investor Contacts
36 INVESTOR CONTACTS : Robert R. Hill, Jr. Chief Executive Officer Richard C. Mathis Executive Vice President and Chief Risk Officer John C. Pollok Senior Executive Vice President and Chief Operating and Financial Officer SCBT Financial Corporation 520 Gervais Street Columbia, South Carolina 29201 8
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