Slide 1: SCBT Financial Corporation
SCBT FINANCIAL CORPORATION
Slide 2: Largest publicly traded bank headquartered in South Carolina
Largest publicly traded bank headquartered in South Carolina Serving the banking needs of customers within the Carolinas for 75 years Strong asset quality and credit underwriting remain the fundamentals of SCBT 3
Slide 3: Unique Franchise Positioning
Unique Franchise Positioning South Carolina Charlotte MSA Georgia Total Loans (in millions) $ 1,740 $ 487 $ 414 $ 2,641 Deposits (in millions) $ 1,769 $ 472 $ 770 $ 3,012 Branches 40 9 26 75 4
Slide 4: Goals and Priorities Established in Fall 2008
Earn our way through the economic cycle Protect our balance sheet Prepare for the future Goals and Priorities Established in Fall 2008 5
Slide 5: Goals and Priorities: Earn our way through the economic cycle
Goals and Priorities Earn our way through the economic cycle Reduced overhead by $9.0 million Solid margin – rate floors & core funding 4.04% (2Q 2010) vs. 4.07% (2Q 2009) * Pre-tax, pre-provision $14.8 million (2Q 2010) vs. $13.3 million (2Q 2009) ** * Excluded excess liquidity impact of 13 bps on
Slide 6: Goals and Priorities: Protect our balance sheet
Goals and Priorities Protect our balance sheet Capital Capital raises - $56.0 million Redeemed preferred stock & common stock warrant Increased ALLL – 2.07% (2Q 2010) vs. 1.45% (2Q 2009) Liquidity Increased core deposits Reduced leverage 7
Slide 7: Goals and Priorities: Prepare for the future
Goals and Priorities Prepare for the future Challenging environment creates opportunities Market disruption - attract talent FDIC Assisted deals Build out markets in Carolinas and Georgia Top 5 market share in all markets Donnie Pickett named Chief Financial Officer January 4, 2010 - CPA with over 2
Slide 8: Unemployment Rates in SCBT Markets
Unemployment Rates in SCBT Markets Columbia Charlotte Georgetown Hilton Head Charleston Greenville Orangeburg/Low Country North Georgia SCBT Divisions Charlotte Greenville Columbia Georgetown Orangeburg/Low Country Charleston Hilton Head North Georgia 11.1% 11.1% 11.3% 10.3% 14.5% 10.0% 8.0% 14.9% 1
Slide 9: South Carolina Deposit Market Share
South Carolina Deposit Market Share Note: SCBT moved from 7th per 6/30/08 FDIC Summary of Deposits Source: FDIC Summary of Deposits as of 6/30/2009. Rank Institution ($000) Deposits Share Market Branches 1 Wells Fargo & Co (CA) $11,463,352 16.42% 150 2 Bank of America (NC) 8,075,624 11.57% 122 3 BB&
Slide 10: Charlotte Deposit Market Share
Charlotte Deposit Market Share Note: SCBT moved from 8th per 6/30/08 FDIC Summary of Deposits Source: FDIC Summary of Deposits as of 6/30/2009. Rank Institution ($000) Deposits Share Market Branches 1 Wells Fargo & Co (CA) $93,092,572 50.61% 78 2 Bank of America (NC) 76,906,134 41.81% 60 3 BB&T (NC)
Slide 11: Northeast Georgia Deposit Market Share
Northeast Georgia Deposit Market Share Counties : Banks, Barrow, Habersham, Hall, Jackson, Oconee, Rabun, Stephens, Towns, White Source: FDIC Summary of Deposits as of 6/30/2009. Rank Institution ($000) Deposits Share Market Branches 1 Community Bank & Trust $1,132,456 14.50% 38 2 Regions (AL) 928,0
Slide 12: 2010 Highlights
13 2010 Highlights Organic Growth (without CBT) - Loans: up 10% annualized, or $52.2 million - Core Deposits, excludes all CD’s: up 26% annualized, or $85.9 million Revenue Growth - Fee Income: Carolinas up in all categories from 1Q 2010 by $2.1 million - Net interest income – up $2.5 million from 1
Slide 13: Growth Strategy
Growth Strategy Build strong bank in South Carolina, North Carolina, and Georgia Organic Growth is Top Priority FDIC Deals Whole Bank Acquisitions Growth Goals: – Drive EPS – Top 5 in market share – Build a franchise 14
Slide 14: Cornelia, Georgia Community Bank and Trust
15 Cornelia, Georgia Community Bank and Trust
Slide 15: Overview of Community Bank & Trust
Overview of Community Bank & Trust Founded in 1900 27 locations in Northeast Georgia – 26 branches including 17 in-store branches – 1 Loan Production Office SCBT Community Bank & Trust Leading deposit market share – Top 5 ranking in 9 of 10 counties – No less than 5% market share Attractive deposit
Slide 16: Transaction Rationale
Transaction Rationale Opportunity to expand and diversify retail deposit franchise Opportunity to build upon Community Bank & Trust’s 110-year operating history 109,000 Customers $314 million in Core Deposits $10 million in fees, annualized Attractive financial metrics #1 Market Share in Northeast G
Slide 17: Market Performance
Market Performance Source: SNL Financial and Company filings. KRX is a composition of 50 regionally diversified mid- & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification standards. Carolina’s in
Slide 18: How Do We Measure Success?
19 How Do We Measure Success? Soundness Profitability Growth
Slide 19: Capital
Capital Source: SNL Financial and Company filings. Data as of 3/31/10. KRX is a composition of 50 regionally diversified mid- & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification standards. Caro
Slide 20: Loan Portfolio – June 30, 2010
21 Loan Portfolio – June 30, 2010 Type $ Mix % Mix Commercial Owner-Occupied $ 498.9 18.9% Covered Loans $ 413.5 15.7% All Other Construction/Land Dev $ 336.3 12.7% Consumer Owner Occupied $ 304.6 11.5% Commercial Non-Owner Occupied $ 294.8 11.2% Home Equity Loans $ 252.0 9.5% Commercial & Industria
Slide 21: Credit Quality
Credit Quality Source: SNL Financial and Company filings. Data as of 3/31/10. KRX is a composition of 50 regionally diversified mid- & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification standard
Slide 22: Non-Performing Loans
Non-Performing Loans Source: SNL Financial and Company filings. Data as of 3/31/10. KRX is a composition of 50 regionally diversified mid- & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification st
Slide 23: How Do We Measure Success? Profitability
24 How Do We Measure Success? Profitability
Slide 24: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power Pre-tax, Pre-Provision Earnings In Millions 25
Slide 25: Operating Efficiency
Operating Efficiency 26 45 50 50 48 86 75 63.8% 65.3% 63.2% 61.2% 67.2% 67.3% 20% 30% 40% 50% 60% 70% 30 40 50 60 70 80 90 2006 2007 2008 2009 1Q 2010 2Q 2010 Number of Branches Efficiency Ratio
Slide 26: Net Interest Margin (TE)
Net Interest Margin (TE) Source: BHC Performance Report. Peers are BHC with assets between $1 billion & $3 billion 27 3.87% 3.82% 3.79% 4.02% 3.89% 4.04% 3.99% 3.78% 3.60% 3.50% 3.67% 3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 2006 2007 2008 2009 1Q ’10 2Q ’10 SCBTFC Peers
Slide 27: Profitability
Profitability 28 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. For 2008, the loss related to the disposal of Freddie Mac Preferred Stoc
Slide 28: Dividends
Dividends Dividend paid for 136 consecutive quarters since 1976 Prior to 1976, dividends were paid semi-annually 3rd Quarter 2010 includes declared on 7/21/10, record date of 8/13/10, payable on 8/20/10 29 $0.54 $0.57 $0.63 $0.66 $0.68 $0.68 $0.68 $0.68 $0.68 $0.68 $0.51 $0.00 $0.25 $0.50 $0.75 $1.0
Slide 29: How Do We Measure Success? Growth
30 How Do We Measure Success? Growth
Slide 30: Business Mix by Market – June 30, 2010
Business Mix by Market – June 30, 2010 Loans Deposits 31 Inland SC 42% Coastal SC 24% Charlotte MSA 18% Georgia 16% Inland SC 43% Coastal SC 16% Charlotte MSA 16% Georgia 25%
Slide 31: Growth – Core & Total Deposits
12.0% 9 YR CAGR (2000 – 2009) Growth – Total Deposits 13.6% 9 YR CAGR (2000 – 2009) Growth – Core Deposits* Core deposits grew $497 million since Dec-09; Core SCBT $183 million / CBT $314 million 2010 YTD # Transaction account growth for core SCBT – 11.6% annualized Total YTD $ Balance growth for co
Slide 32: Deposit Mix — June 30, 2010
Deposit Mix — June 30, 2010 Demand CD > 100,000 yp) 20% fo Savings 6% CD < 100,000 Interest 23% Bearing Deposits 36% "ae alti See
Slide 33: Analyst Recommendations
Analyst Recommendations ANALYST Third Quarter 2010 RECOMMENDATION FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM SunTrust Robinson Humphrey BUY Howe Barnes Hoefer & Arnett, Inc. NEUTRAL Sandler O’Neill + Partners HOLD Wunderlich Securities BUY 34
Slide 34: Index – Supplemental Information
Index – Supplemental Information SC real estate markets Loan portfolio summary – Type Credit quality ratios NPA’s by type NPA’s by market Investment portfolio mix Securities portfolio Fee income by type 35
Slide 35: Investor Contacts
Investor Contacts Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Operating Officer Donald E. Pickett Executive Vice President and Chief Financial Officer 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.scbtonline.com 36
Slide 36: Supplemental Information
37 Supplemental Information
Slide 37: S.C. Real Estate Markets
S.C. Real Estate Markets Source: June 2010 Rates from S.C. Realtors MLS Stats 38 Beaufort 74 85 14.9% 180 160 -11.1% 198 165 -16.7% Charleston Trident 732 1,022 39.6% 193 186 -3.6% 118 105 -11.0% Coastal Carolinas 573 754 31.6% 156 145 -7.1% 192 181 -5.7% Gr. Columbia 719 926 28.8% 140 145 3.6% 107
Slide 38: Loan Portfolio Summary - Type
Loan Portfolio Summary - Type 39 * Loans not covered under loss share agreements (dollars in thousands) Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Construction / land development $ 489,730 $ 484,540 $ 467,284 $ 442,566 $ 443,758 Commercial non-owner occupied 318,909 311,903 303,650 294,147 294,804 Consumer
Slide 39: Credit Quality Ratios
Credit Quality Ratios 2Q’09 3Q’09 4Q’09 1Q’10 2Q’10 Non-Performing Assets / Total Assets* 1.46% 1.56% 1.96% 1.72% 2.37% Non-Performing Assets / Total Loans & OREO* 1.83% 1.96% 2.40% 2.89% 3.84% Allow. Loan Losses / Total Loans* 1.45% 1.55% 1.70% 1.90% 2.07% Allow. Loan Losses / Non-Performing Loans*
Slide 40: NPAs by Type
NPAs by Type (dollars in thousands) * Included in NPLs for the 4Q 2009 41 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Jun-10 Construction/Land Development $ 18,308 $ 21,241 $ 23,195 $ 22,851 $ 37,611 43.8% Commercial Non-Owner Occupied 2,063 4,088 7,862 7,012 11,875 13.8% Commercial Owner Occupied 3,209 4,76
Slide 41: NPAs by Markets
NPAs by Markets (dollars in thousands) 42 * Data excludes covered loans Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Jun-10 Beaufort / Charleston $ 7,557 $ 11,960 $ 16,071 $ 14,285 $ 30,146 35.11% Georgetown 8,990 8,978 12,702 16,701 18,483 21.53% Orangeburg / Low Country 7,388 7,480 8,287 8,286 7,709 8.98% C
Slide 42: Investment Portfolio Mix
Investment Portfolio Mix *Fair value for AFS securities; amortized/accreted cost for HTM securities. Does not include FRB stock, FHLB stock, or investment in unconsolidated subsidiaries. Investment Portfolio (AFS & HTM) As of 6/30/10 Tax Equivalent Yield 4.35% Weighted Average Life 3.45 years Modifi
Slide 43: Fee Income By Type
Fee Income By Type 45 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 Service charges on deposit accounts 3,819 $ 4,089 $ 4,005 $ 4,523 $ 5,582 $ Bankcard services income 1,290 1,278 1,293 1,799 2,348 Mortgage banking income 2,134 1,451 1,706 1,182 1,660 Trust and investment services income 671 588 567 784 1,187 Secu