Slide 1: SCBT Financial Corporation
SCBT FINANCIAL CORPORATION
Slide 2: Forward-Looking Statements
Statements included in this presentation ,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 Section 21E of the Securities Exchange Act of 1934. SCBT Financial Corporation cautions readers that f
Slide 3: 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 79 years and Georgia for 112 years Strong asset quality and credit underwriting remain the fundamentals of SCBT SCBT Financial Corporation 3
Slide 4: SCBT Footprint
SCBT Footprint North Carolina 3 branches $ 235 Million Deposits #8 Rank in Charlotte MSA South Carolina 53 branches $ 2.72 Billion Deposits #6 Rank Northeast Georgia 20 branches $ 841 Million Deposits #5 Rank Headquarters- Columbia, SC * Market share ranking as of June 30,2011, all other for the cur
Slide 5: Market Performance
Market Performance Source: SNL Financial Pricing data as of 4/27/12 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 Caroli
Slide 6: Profitability
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. For 2008, the loss related to the disposal of Freddie Mac Preferred Stock i
Slide 7: Strategic Areas of Focus
Strategic Areas of Focus Soundness LEADERSHIP Dy gf eancat .) CORPORATION’ [if
Slide 8: Impact to SCBT
Impact to SCBT Focus Differentiates SCBT Low Turnover Attracts Customers and Employees Clear Roadmap 8
Slide 9: Highlights of SCBT
Highlights of SCBT Profitable Every Quarter of Downturn Fortress Balance Sheet Improved Credit Trends Building Book Value per Share Strong Culture Consistent Organic Growth Selective M&A Strategy Well-positioned for Future 9
Slide 10: 1st Quarter 2012 Highlights
1st Quarter 2012 Highlights Quarterly operating earnings of $7.0 million Assets exceed $4 billion Excellent core deposit growth 12.6 % annualized Fee Income remains solid Credit quality measures improved NPA and Classifieds reduction Charge Offs 66 BPS ROA 0.71 % / ROE 7.37 % 10
Slide 11: Goals and Priorities
Goals and Priorities Integrate Peoples Bancorporation Closed April 24th Two deals a year Focus on selective organic growth Return to normalized EPS Continue credit improvement 11
Slide 12: Leadership
Leadership Experienced Executive Management Team Executive Position Years in Banking Years with SCBT Robert R. Hill, Jr. CEO 24 16 John C. Pollok Sr. EVP, CFO/COO 26 16 Joe E. Burns Sr. EVP, CRO 35 11 John F. Windley President, CBO 36 10 Renee R. Brooks EVP, CAO 20 16 12
Slide 13: South Carolina Deposit Market Share
South Carolina Deposit Market Share Source: FDIC Summary of Deposits as of 6/30/2011 * SCBT includes BankMeridian and Peoples Bancorporation Deposits Rank Institution ($000) Deposits Share Market Branches 1 Wells Fargo & Co (CA) 12,009,580 17.69% 151 2 Bank of America (NC) 9,043,470 13.32% 111 3 BB&
Slide 14: Charlotte Deposit Market Share
Charlotte Deposit Market Share Source: FDIC Summary of Deposits as of 6/30/2011. Rank Institution ($000) Deposits Share Market Branches 1 Bank of America (NC) $127,934,050 79.59% 60 2 Wells Fargo & Co (CA) 18,297,321 11.38% 81 3 BB&T (NC) 4,038,087 2.51% 59 4 Fifth Third Bank (OH) 1,478,806 0.92% 35
Slide 15: Northeast Georgia Deposit Market Share
Northeast Georgia Deposit Market Share Note: NE Georgia Deposit Market Share includes the following counties: Barrow, Habersham, Hall, Jackson, Oconee, Rabun, Stephens, Towns, Warren, White. *As of January 2012, 20 branches Source: FDIC Summary of Deposits as of 6/30/2011. Rank Institution ($000) De
Slide 16: Capital
Capital Redeemed preferred stock & common stock warrants First bank in South Carolina & one of the first nationally Capital Raise: $91 million $27M October 2008 $29M May 2009 $35M February 2011 Capital Ratios Leverage Ratio 9.23% Tier 1 Capital Ratio 14.54 % Total Risk Based Capital Ratio 15.82 % Ta
Slide 17: Peoples Bancorporation
Habersham Bank Peoples Bancorporation
Slide 18: Transaction Rationale
Transaction Rationale In market acquisition consistent with SCBT’s Merger & Acquisition strategy Creates the 6th largest Bank pro forma deposit market share in South Carolina Well positioned along the I-85 corridor; connecting existing franchise in Charlotte, Greenville and Georgia markets Cultural
Slide 19: Terms of the Transaction
Terms of the Transaction Transaction Value: (1) $44.7 million - Stock Consideration $31.3 (4) - TARP $13.4 Fixed Exchange Ratio: (1) 0.1413 SCBT shares for each share of PBCE Implied Price per Share: (1) $4.39 Consideration: 100% stock Price/Tangible Book Multiple: (1) (2) 67% PBCE TARP Treatment: S
Slide 20: Connecting our Footprint Along I-85 Corridor
Connecting our Footprint Along I-85 Corridor Source: SNL Financial SOUTH CAROLINA GEORGIA NORTH CAROLINA SCBT Branch PBCE Branch 20
Slide 21: Soundness
SUUNDNESS
Slide 22: Credit Quality
Credit Quality Source: SNL Financial and Company filings. Data as of 12/31/11. 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 standar
Slide 23: Credit Quality Ratios
Credit Quality Ratios 1Q’11 2Q’11 3Q’11 4Q’11 1Q’12 Non-Performing Assets / Total Assets* 2.29% 2.44% 2.44% 2.44% 2.26 % Non-Performing Assets / Total Loans & OREO* 3.83% 3.86% 3.87% 3.82% 3.72 % Allow. Loan Losses / Total Loans* 2.05% 2.00% 2.00% 2.00% 1.95 % Allow. Loan Losses / Non-Performing Loa
Slide 24: Capital
Capital Source: SNL Financial and Company filings. Data as of 12/31/11. 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. Car
Slide 25: Profitability
PROFITABILITY
Slide 26: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power In Millions 26
Slide 27: Net Interest Margin (TE)
Net Interest Margin (TE) Source: BHC Performance Report. Peers are BHC with assets between $3 billion & $10 billion 27
Slide 28: Operating Efficiency
Operating Efficiency April 2012 with Peoples Bancorporation = 76 Branches Efficiency Ratio excluding credit and merger expenses 66.3 % * 28
Slide 29: Dividends
Dividends Dividend paid for 145 consecutive quarters since 1976 Prior to 1976, dividends were paid semi-annually 1st Quarter 2012 includes dividends declared on 4/24/12, record date of 5/18/12, payable on 5/25/12 29
Slide 30: [LOGO]
[LOGO]
Slide 31: Growth Strategy
Growth Strategy Build strong bank in South Carolina, North Carolina, and Georgia Organic Growth FDIC Deals Whole Bank Acquisitions Growth Goals: Drive EPS Top 5 in market share Build a franchise 31
Slide 32: Loan Portfolio – 1Q 2012
Loan Portfolio – 1Q 2012 Type $ Mix % Mix Construction / Land Development $294.9 12.10% Commercial Non Owner Occupied $284.0 11.65% Consumer Owner Occupied $665.7 27.31% Commercial Owner Occupied $744.4 30.54% Commercial & Industrial $216.1 8.87% Other Income Producing Property $130.1 5.34% Consumer
Slide 33: Organic Loan Growth / Decline
Organic Loan Growth / Decline In Millions * Bars represent Non-Acquired Loan Growth, linked quarter 33
Slide 34: Non-Performing Loans
Non-Performing Loans Source: SNL Financial and Company filings. Data as of 12/31/11 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 35: Deposit Mix – March 31, 2012
Deposit Mix – March 31, 2012 35 Demand Deposits 23% Savings 8% Interest Bearing Deposits 44% CD < 100,000 14% CD > 100,001 11%
Slide 36: Growth – Core & Total Deposits
Growth – Core & Total Deposits In Millions *Core Deposits exclude all certificates of deposits Growth – Core Deposits* 25.0 % 5 YR CAGR (2007 – 2011) Growth – Total Deposits 21.6% 5 YR CAGR (2007 – 2011) Acquired Deposits $3,254 36 Core deposits increased $161 million since Dec-11; Legacy SCBT $111
Slide 37: Business Mix by Market – March 31, 2012
Business Mix by Market – March 31, 2012 Loans** Deposits Inland SC 51% Coastal SC 24% Charlotte MSA 23% Georgia 2% Inland SC 44% Coastal SC 14% Charlotte MSA 15% Georgia 27% *Inland SC includes Florence **Excludes acquired loans 37
Slide 38: Supplemental Information
Habersham Bank SUPPLEMENTAL INFORMATION
Slide 39: Index – Supplemental Information
Index – Supplemental Information Largest Relationships (New) 48 Loan portfolio summary – Type49 Vintage/New Loan Mix50 Construction / Land Development Loans51 ALLL Trend53 Credit Trends54 Net Charge-offs by type56 NPA’s & Classifieds by Region/Type57 Loss Share Performance60 Investment portfolio62 F
Slide 40: Largest Credit Relationships (Non-Acquired)
Largest Credit Relationships (Non-Acquired) 40 Number of Loan Relationships 25 50 100 Total Relationship Commitment $ % Top 25 236.5 $ 7.54% Top 50 367.5 $ 11.72% Top 100 553.6 $ 17.66% Top 200 809.1 $ 25.81% Total Commitments 3,134.8 $ 100.00% Total Relationshp Balance $ % Top 25 163.0 $ 6.69% Top
Slide 41: Loan Portfolio Summary - Type
Loan Portfolio Summary - Type * Loans not acquired 41 (dollars in thousands) Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Construction / land development 370,442 $ 338,288 $ 316,072 $ 310,845 $ 294,865 $ Commercial non-owner occupied 332,773 306,698 304,616 299,698 284,044 Consumer owner occupied 339,948 367,
Slide 42: Vintage / New Loan Mix – 1Q 2012
Vintage / New Loan Mix – 1Q 2012 *New=Origination date of 1/1/08 or later, non-acquired loans 42 In Thousands 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Con/Land Dev Cml Non-Owner Occ Other Inc Prod Prop Cons Owner Occ Cml Owner Occ C & I Cons Non Real Estate
Slide 43: Construction / Land Development Loan Mix – 1Q 2012
Construction / Land Development Loan Mix – 1Q 2012 *New=Origination date of 1/1/08 or later, non-acquired loans 43 140,000 120,000 100,000 80,000 60,000 40,000 20,000 Cons Constr Land/Lots Constr Loans to Builders Comm Constr Res Lot Loans Vintage New Inthousands 98% 2% 42% 58% 45% 55% 45% 55% 100%
Slide 44: Construction / Land Development Loans (Non-Acquired)
Construction / Land Development Loans (Non-Acquired) * In millions 44 $0 $50 $100 $150 $200 $250 Consumer Construction Land/Lots Construction Loans to Builders Commercial Construction Residential Lot Loans to Individuals $50.3 $204.0 $63.2 $83.0 $120.9 $48.9 $134.0 $13.4 $18.8 $79.8 4Q07 1Q12
Slide 45: ALLL Trend Data (Non-Acquired Loans)
ALLL Trend Data (Non-Acquired)Loans) Note: Net charge-offs excludes the impact of loan participations and a BHC loan. 45 2.00 % $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- 1.40% 1.45% 1.55% 1.70% 1.90% 2.07% 2.07% 2.05% 2.00% 2.00% 1.95% 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/31/
Slide 46: Credit Trends
Credit Trends (dollars in millions) Texas ratio – Delinquent loans + nonperforming assets / Tangible Common Equity + ALLL Criticized Loans – Special Mention Classified Assets (Classified loans & OREO) *Excludes assets related to covered loss share 46 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 90.8 $ 93.7 $
Slide 47: Strong Coverage Ratios Driven by Low NPAs
Strong Coverage Ratios Driven by Low NPAs 30-89 Delinquencies/Loans NPAs/(Loans + OREO) NCOs/Avg. Loans Reserves/Loans (ex HFS) Source: SNL Financial, FDIC and FFEIC, KBW Peer Data as of 12/31/11 Asset quality ratios exclude loans covered by the FDIC and loans held for sale 47
Slide 48: Net Charge Offs by Type
Net Charge Offs by Type 48 (dollars in thousands) Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Mar-12 Construction/Land Development 4,448 $ 2,098 $ 2,279 $ 2,723 $ 230 $ 5.7% Commercial Non-Owner Occupied 1,216 502 1,047 502 986 24.3% Commercial Owner Occupied 728 296 976 186 1,494 36.8% Consumer Owner Occupi
Slide 49: NPAs by Region (Non-Acquired)
NPAs by Region (NonAcquired) * Other includes CBT (Non-Acquired) & Jun11 branch impairment 49 REGION Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 (in thousands) Hilton Head/Beaufort 25,949 $ 26,806 $ 24,104 $ 20,379 $ 17,819 $ Charleston 8,054 7,477 6,120 12,759 11,739 Myrtle Beach 21,439 20,935 21,893 16,141
Slide 50: NPAs by Type (Non-Acquired)
* Other includes CBT (Non-Acquired) & Jun11 branch impairment NPAs by Type (NonAcquired) (dollars in thousands) 50 % of Total Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Mar-12 Construction/Land Development 41,865 $ 46,004 $ 40,655 $ 40,608 $ 36,767 $ 40% Commercial Non-Owner Occupied 14,355 15,212 14,559 14
Slide 51: Classified Loans & OREO by Region
Classified Loans & OREO by Region *2Q2011 Branch impairment *Other Includes CBT (Non-acquired) 51 REGION Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 (in thousands) Hilton Head/Beaufort 46,279 $ 44,377 $ 40,692 $ 37,411 $ 34,741 $ Charleston 22,406 16,234 17,420 20,912 19,843 Myrtle Beach 33,770 35,638 32,207
Slide 52: 1Q 2012 Loan Valuation (Acquired)
1Q 2012 Loan Valuation (Acquired) Loan Carrying Value and the Yield represents the Earning Assets and related Yield as included in the Rate Volume. SCBT has had significant releases of credit mark in the first quarter of 2011 and 2012 which is a main contributor to an increase in the yield on acquir
Slide 53: Loss Share Performance
Loss Share Performance (1) Does not include expense, net of revenues (only losses claimed) Represents the estimated losses on OREO at period end. These losses have been recognized to record OREO at net realizable value. Losses are claimable from the FDIC upon sale or receipt of a valid appraisal. 53
Slide 54: Investment Portfolio Mix
Investment Portfolio Mix *Fair value for AFS securities; amortized/accreted cost for HTM securities. Does not include FRB stock, FHLB stock, BHC stocks, or investment in unconsolidated subsidiaries. Investment Portfolio (AFS & HTM) As of 3/31/12 Tax Equivalent Yield 3.33% Weighted Average Life 3.65
Slide 55: Investment Portfolio – March 31, 2012
Investment Portfolio – March 31, 2012 (Dollars in thousands) Includes held-to-maturity and available-for-sale municipal securities. Note: All Agency MBS and CMOs carry the backing of the agency or GSE and have an implied Moody’s Aaa rating. 55 Book Value Market Value Other Compre-hensive Income AAA
Slide 56: Fee Income By Type
Fee Income By Type 56 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 Service charges on deposit accounts 5,030 $ 5,615 $ 6,050 $ 5,959 $ 5,447 $ Bankcard services income 2,659 3,045 2,980 3,037 3,320 Mortgage banking income 863 1,125 2,341 1,942 1,830 Trust and investment services income 1,249 1,525 1,453 1,237 1,39
Slide 57: Continued CD Repricing Opportunities
Continued CD Repricing Opportunities Average CD Price in past 30 days ~ 20 BPS 57 Upcoming Maturities (in millions) Amount Yield 2nd Quarter 2012 218.5 $ 0.46% 3rd Quarter 2012 232.1 $ 0.54% 4th Quarter 2012 132.6 $ 0.50%
Slide 58: Market Demographics
Market Demographics Source: SNL Financial, Inc. 58 South Carolina Franchise 1.25% 6.53% $42,815 13.04% North Carolina Franchise 1.93 9.11 57,716 9.11 Georgia Franchise 0.78 4.97 41,418 4.97 National 1.15 5.73 43,126 18.74 Population Growth Rate 2010-2011 2011-2016 Household Median Income 2011 Projec
Slide 59: Unemployment Data
Unemployment Data 59 9.7% 9.0% 8.9% 8.2%
Slide 60: S.C. Real Estate Markets
S.C. Real Estate Markets Source: Rates from S.C. Realtors MLS Stats 60 Beaufort 238 203 -14.7% 168 179 6.5% 196 212 8.2% Charleston Trident 1,967 2,056 4.5% 173 182 5.2% 115 116 0.9% Coastal Carolinas 1,686 1,725 2.3% 140 139 -0.7% 180 182 1.1% Gr. Columbia 1,295 1,493 15.3% 135 137 1.5% 123 120 -2.
Slide 61: Columbia MSA – Economic Drivers
Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw Fairfield Lexington Richland Marlboro Dillon Darlington Lee Sumter Florence Marion Horry Williamsburg Georgetown Clarendon B
Slide 62: Charlotte MSA – Economic Drivers
Charlotte MSA – Economic Drivers HEALTH SERVICES | FINANCIAL | SERVICES | WHOLESALE TRADE MANUFACTURING | TRANSPORTATION Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw Fai
Slide 63: Greenville-Anderson-Spartanburg CSA – Economic Drivers
Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw Fairfield Lexington Richland Marlboro Dillon Darlington Lee Sumter Florence Marion Horry Williamsburg Georgetown Clarendon B
Slide 64: Charleston MSA – Economic Drivers
Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw Fairfield Lexington Richland Marlboro Dillon Darlington Lee Sumter Florence Marion Horry Williamsburg Georgetown Clarendon B
Slide 65: Analyst Recommendations
Analyst Recommendations ANALYST First Quarter 2012 RECOMMENDATION FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM Raymond James MARKET PERFORM Sandler O’Neill + Partners HOLD SunTrust Robinson Humphrey BUY Sterne Agee & Leach Inc. BUY Wunderlich Securities BUY 65
Slide 66: 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 66