Southstate Bank Corporation · NYSE:SSB
Southstate Bank — First Financial Holdings — Q3 2013 Earnings Presentation
40 slides from Southstate Bank's earnings presentation, Nov 14, 2013
Slide 1: Investor Presentation Third Quarter 2013
FIRST FINANCIAL Investor Presentation HOLDINGS, INC. Third Quarter 2013
Slide 2: Forward Looking Statements and Non GAAP Measures
Forward Looking Statements and Non GAAP Measures Cautionary Statement Regarding Forward Looking Statements Statements included in this report which are not historical in nature are intended to be, and are hereby identified as, forward looking statements for purposes of the safe harbor provided by Se
Slide 3: Largest Publicly Traded Bank Holding Company Headquartered in SC
Largest Publicly Traded Bank Holding Company Headquartered in SC Assets -$8.0 Billion Loans -$5.8 Billion Deposits -$6.7 Billion GEORGIA Charlotte Wilmington Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Athens Gainesville Georgetown Charleston NORTH CAROLINA SOUTH CAROLINA Gree
Slide 4: Highlights of SCBT
Highlights of SCBT Consistent Organic Growth Large and Low Cost Deposit Base Fortress Balance Sheet Organic Revenue And Profit Growth Strategic Expansion Building Tangible Book Value per Share Quality Loan and Deposit Relationships Simple Business Model and Balance Sheet Focus on Integration and Exe
Slide 5: How We Operate
How We Operate The Company Soundness Profitability Growth
Slide 6: Market Performance Since 2008
Market Performance Since 2008 (1) See endnotes (1) 0.0 50.0 100.0 150.0 200.0 SCBT Total Return SCBT Carolina Peers Georgia Peers KRX 94.1% 75.4% 22.3% (26.5%) (55.5%)
Slide 7: Largest SC Bank Merger
LARGEST SC BANK MERGER SCBT Financial Corporation and First Financial Holdings, Inc. Closed July 26, 2013 SC Be TEREST 7 FIRST FINANCIAL HOLDINGS, INC.
Slide 8: FFCH Merger Update
Capital Ratios Tangible Common Equity / Tangible Assets 6.85 % Tier 1 Leverage 10.1 % Tier 1 Risk-Based Capital 13.1 % Total Risk-Based Capital 14.4 % Tangible Book Value accretive within 3.5 years Issued ~ 7 million common shares Double digit EPS accretive (excluding one-time merger costs) for the
Slide 9: Impact to the Balance Sheet
Impact to the Balance Sheet Balance Sheet Re-Positioning Investment Portfolio: Sold ~$175 million in First Federal securities Paid off at closing: FHLB Advances $233 million Future Focus of Balance Sheet Organic loan growth Acquired loan portfolio contraction over the next year Grow investment portf
Slide 10: Select Balance Sheet Items – Linked Quarter
Select Balance Sheet Items – Linked Quarter Assets 9/30/2013 6/30/2013 Net Change Cash & Cash Equivalents $ 645.2 $ 436.5 $ 208.7 Investment Securities 652.6 531.6 121.0 Loans - Acquired 3,014.1 921.8 2,092.9 Loans - NonAcquired 2,741.2 2,665.6 75.6 Goodwill & Intangibles 381.4 123.4 258.0 Total Ass
Slide 11: Franchises that Complement Each Other
MSA SCBT Rank Deposits FFCH Rank Deposits Combined Hilton Head 2 7 2 Georgetown 8 4 2 Charleston 10 2 2 Florence 10 7 4 Greenville 8 15 6 Myrtle Beach 19 6 6 Franchises that Complement Each Other See endnotes (4)
Slide 12: Deposit Market Share in South Carolina
South Carolina # 5 Market Share See endnotes (4) Rank Institution Deposits ($mm) Market Share (%) Branches 1 Wells Fargo Bank NA 13,308 19.43 146 2 Bank of America NA 9,067 13.24 102 3 Branch Banking and Trust Co. 7,446 10.87 116 4 First Citizens Bank and Trust Co. Inc. 6,387 9.33 165 First Financia
Slide 13: Soundness
SOUNDNESS 13
Slide 14: Credit Quality
Credit Quality See endnotes (5)
Slide 15: Capital
18.00% 15.00% 12.00% 9.00% 6.00% 3.00% 0.00% Capital 16.30% 14.60% 9 14.4% 44 959 13.1% 12.91% 10.1% 9 wee 9.51%, 2:83% = 8.03% 6.85% Tangible Common Leverage Ratio Tier 1 Capital Ratio Total Risk-Based Capital Equity/Assets Ratio @ SCBT as of 9/30/13 @ KRX Median as of 6/30/13 td Carolina Median 6/
Slide 16: Profitability
PROFITABILITY 16
Slide 17: Profitability
Profitability INCOME (in Millions) See endnotes (6) EPS
Slide 18: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power In Millions See endnotes (2)
Slide 19: Net Interest Margin
Net Interest Margin See endnotes (17)
Slide 20: Operating Efficiency Ratio - QTD
Operating Efficiency Ratio - QTD 20 See endnotes (7)
Slide 21: Common Stock Dividends
Common Stock Dividends See endnotes (8)
Slide 22: Growth
GROWTH 22
Slide 23: Loan Portfolio Mix
Loan Portfolio Mix 4.4 % 5-YR CAGR (2007 – 2012) Organic Loan Growth In Millions See endnotes (9)
Slide 24: Growth – Core & Total Deposits
Growth – Core & Total Deposits In Millions Growth – Core Deposits* 35.1% 5-YR CAGR (2007 – 2012) Growth – Total Deposits 36.9% 5-YR CAGR (2007 – 2012) Acquired Deposits $3,004 $2,350 $3,254 See endnotes (10) $4,298 $6,663 $4,985 Legacy Deposits
Slide 25: Supplemental Information
SUPPLEMENTAL INFORMATION 25 “FIRST FINANCIAL HOLDINGS, IN c Seg am Tat
Slide 26: Index – Supplemental Information
Index – Supplemental Information Loan Portfolio Mix (NEW) .27 Credit Trends28 Investment Portfolio29 Fee Income by Type30 Market Demographics31 Analyst Recommendations38
Slide 27: Loan Portfolio Mix
Loan Portfolio Mix $2,741 $ 362 $2,651 $5,754 Million
Slide 28: Credit Trends
Credit Trends Non-Acquired Loans See endnotes (11) (in millions) Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Total Nonperforming Assets 81.8 $ 81.1 $ 76.4 $ 68.7 $ 66.1 $ Texas Ratio (11) 20.43% 19.15% 17.74% 15.95% 10.61.% Criticized Loans (11) 144.5 $ 153.1 $ 147.3 $ 130.1 $ 133.1 $ Classified Assets (11)
Slide 29: Bank Investment Portfolio Mix
Bank Investment Portfolio Mix Bank Fixed Income Investment Portfolio (AFS & HTM) Tax Equivalent Yield Weighted Average Life Modified Duration Total Carrying Value 3.01 % 4.76 years 4.23 $636,302 See endnotes (12)
Slide 30: Fee Income By Type
Fee Income By Type 22% of Total Income $ 3.3 Billion in Assets Under Management or Care Focused on growing Wealth Management Checking Accounts Mortgage 3Q2013: $23 Million See endnotes (13)
Slide 31: Northeast Georgia Deposit Market Share
Northeast Georgia Deposit Market Share 40 FDIC Insured Institutions, $10.8 Billion Total Deposits Rank Institution (in Millions) Deposit Share 1 Wells Fargo 1,467 13.6% 2 Regions Bank 1,074 9.95% 3 SunTrust Bank 1,022 9.47% 4 United Community Bank 874 8.1% 5 Synovus 825 7.7% 6 First Financial Holdin
Slide 32: South Carolina MSA Market Share
South Carolina MSA Market Share Charleston 1 Wells Fargo 22.41 2 First Financial Holdings 16.74 3 Bank of America 13.75 4 First Citizens 6.83 5 Synovus Financial 6.69 Total $9.9 Billion 100 % Walterboro 1 Communitycorp 29.56 2 First Financial Holdings 19.64 3 First Federal of SC FSB 18.75 4 Enterpri
Slide 33: Georgia & North Carolina MSA Market Share
Georgia & North Carolina MSA Market Share Wilmington 1 BB&T 27.17 2 Wells Fargo 16.71 3 First Citizens BancShares 11.98 4 Bank of America 8.15 9 First Financial Holdings 3.75 Total $5.9 Billion 100 % Athens-Gainesville 1 Wells Fargo 27.76 2 SunTrust Banks 24.80 3 Synovus Financial Corp. 21.56 4 BB&T
Slide 34: Unemployment Data
Unemployment Data 14.0 12.0 | 10.0 © 8.0 6.0 4.0 2.0 - 0.0 . - = - ‘Aug-02 Aug-03 Aug-04 Aug-O5 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 National —NorthCarolina © ——SouthCarolina =—Georgia FIRST FINANCI
Slide 35: South Carolina Real Estate Markets
South Carolina Real Estate Markets See endnotes (16) Beaufort 819 980 19.7% 175 $ 183 $ 4.6% 201 196 -2.5% Charleston Trident 7,873 9,754 23.9% 190 206 8.3% 103 79 -23.3% Coastal Carolinas 6,482 7,398 14.1% 139 146 4.7% 174 168 -3.4% Greater Columbia 5,742 7,195 25.3% 142 144 1.4% 116 107 -7.8% Grea
Slide 36: Demographic Highlights In Key Markets
Demographic Highlights In Key Markets See endnotes (15)
Slide 37: Median Household Income
More than $82,000 $68,001-$82,001 $39,001-$53,000 (Median) $24,001-39,000 $24,000 or less Median Household Income See endnotes (15)
Slide 38: Analyst Recommendations
Analyst Recommendations ANALYST Third Quarter 2013 RECOMMENDATION BB&T Capital Markets HOLD FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM Raymond James STRONG BUY Sandler O’Neill + Partners BUY Sterne Agee BUY SunTrust Robinson Humphrey BUY Wunderlich Securities BUY
Slide 39: Investor Contacts
Investor Contacts Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Financial Officer / Chief Operating Officer 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.scbtonline.com
Slide 40: Endnotes
Endnotes Source: SNL Financial. Pricing data as of 11/1/13.KRX is a composition of 50 regionally diversified mid and small-cap banking institutions in the U.S and is calculated using and equal-weighted method Carolina Peers include all major exchange traded banks and thrifts in North Carolina and So
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