Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — FTN Midwest Securities Small & Mid Cap Bank Conference 2007
38 slides from Southstate Bank's conference presentation, Sep 6, 2007
Slide 1: FTN Midwest Securities Small & Mid Cap Bank Conference
FTN Midwest Securities Small & Mid Cap Bank Conference September 6, 2007 FINANCIAL CORPORATION®
Slide 2: Forward-Looking Statements
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 mat
Slide 3: Executive Management Team
Executive 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 7/23 CRO John F. Windley 5/31President SCBT Thomas S. Camp 9/32 President SCBT Piedmont
Slide 4: $2.27 billion bank founded in 1934
$2.27 billion bank founded in 1934 45 financial centers 16 S.C. Counties Opened 15 new offices in the last 5 years
Slide 5: SCBT Financial Corporation Profile
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. Mission: To be South Carolina’s premier com
Slide 6: At A Glance
At A Glance Closing Price as of 8-30-2007 $36.33 6-30-07 Earnings per share $ 0.60 Book Value (6-30-2007)$18.47 Price / Ea\ rnings (TTM) 16.2x Market Capitalization at 8-30-2007 ~$334MM Listed on the NASDAQ Global Select Market
Slide 7: What Makes Us Successful?
What Makes Us Successful? Customers Employees Community Involvement Management/Board
Slide 8: Business Model
Business Model Community Banking Local Decisions Centralized Processes Experienced Relationship Managers & Employees “South Carolina’s Bank”\
Slide 9: YTD 2007 Accomplishments
YTD 2007 Accomplishments Net Income of $10.8 million – Up 10.2% YOY. Diluted EPS of $1.17 – Up 10.1% YOY. Total Assets of $2.27 billion – Up 9.9% YOY. Paid 5% common stock dividend. Opened full-service branch in Myrtle Beach market. Opened full-service branch in Charleston market. Opening a full-ser
Slide 10: Deposit Market Share
Deposit Market Share Deposits Market Rank Institution ($000) Share Branches 1 Wachovia (NC) $8,461,441 20.77 %107 2 Bank of America (NC) 5,677,114 13.94 86 3 BB&T (NC) 5,490,144 13.48 90 4 South Financial Group (SC) 4,025,731 9.88 57 5 Synovus Financial (GA) 2,670,902 6.56 35 6 First Citizens Bancor
Slide 11: Selected MSA Statistics
Selected MSA Statistics SCBT Financial Center Locations Sources: SunTrust Robinson Humphrey, Inc.; Keefe, Bruyette & Wo ods; Federal Deposit Insurance Corporation Charlotte, NC Savannah, GA Augusta, GAWilmington, NC
Slide 12: Demographics – Population & Income
Demographics – Population & Income Projected Change in Population 2006-2011 (%) Projected Median Household Income 2011 ($)Source: SNL Financial & Keefe Bruyette Wood Population and median household income are deposit weighted 10 7.5 2.5 0 9.4 9 6.7 SCBT Southeast United States $60,00 $50,000 $40,000
Slide 13: Projected Population Growth 2006-2011
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: Building The Carolinas' Premier Community Bank Transaction Overview
Building The Carolinas' Premier Community Bank Transaction Overview August 30, 2007
Slide 15: Transaction Overview – Summary Terms
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 averag
Slide 16: Enhances Overall Banking Franchise
Enhances Overall Banking Franchise Further 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 hea
Slide 17: Strategic Rationale – Charlotte MSA Deposit Market Share
Transaction Overview – Strategic Rationale 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
Slide 18: Strategic Rationale – North Carolina Growth Potential
Transaction Overview – Strategic Rationale 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)
Slide 19: Strategic Rationale – Soundness
Transaction Overview – Strategic Rationale SOUNDNESS Net Charge-offs / Average Total Loans Source: BHC Performance Report0.16% 0.11% 0.09% 0.00%0.05%0.10%0.15%0.20%0.25%0.30%0.35%0.40%
Slide 20: Soundness
SOUNDNESS 2005 2006 1Q 2007 2Q 2007 Non-Performing Assets / Total Loans & OREO* 0.30% 0.30% 0.25% 0.28% Allow. Loan Losses / Total Loans* 1.30% 1.29%1.29% 1.29% Allow. Loan Losses / Non-Performing Loans* 469% 492% 581% 542% Net Charge-offs / Average Loans 0.11% 0.16%0.11% 0.09% * Period end date Loa
Slide 21: Profitability – Earnings Per Share and Net Income
PROFITABILITY Earnings Per Share and Net Income 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$6,000$
Slide 22: Fee Income By Type
Fee Income By Type 2004 2005 2006 6/30/07 Deposit Service Fees $11,854 $12,473 $13,377 $7,043 Secondary Mtg. Orig Fees 3,892 5,054 5,613 3,385 Wealth Management 1,422 1,695 2,148 1,274 Bankcard Services Income 1,690 2,647 3,422 2,016 Other * 2,026 1,986 2,149 1,364 Total Non-interest Income$20,884 $
Slide 23: Year-Over-Year EPS Growth
Year-Over-Year EPS Growth Source: FTN Midwest Securities Corp. - -35%-30%-25%-20%-15%-10%-5%0%5%10%15%20%1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07Super Regional Banks Regional BanksSmall Cap Banks SCBT Financial CorporationThrifts
Slide 24: Profitability – Return on Average Equity
PROFITABILITY Return on Average Equity 14.09%13.72%12.20%13.19%15.20%12.72%16.54%12.87%16.45%13.27%16.82%0.00%4.00%8.00%12.00%16.00%20.0 0%2002 2003 2004 2005 2006 1Q 2007 2Q 2007Return on Avg. Equity Return on Tangible Equity
Slide 25: Performance Drivers – Net Interest Margin
PERFORMANCE DRIVERS Net Interest Margin – SCBT / Peer Source: BHC Performance Report 4.12% 3.94% 3.99% 5.00%2002 2003 2004 2005 2006 1Q 2007 2Q 2007 3.00 %3.50%4.00%4.50%5.00%SCBTFC Peers
Slide 26: Checking Account Growth
Checking Account Growth 15% CAGR 13.3 16.4 17.6 25 2004 2005 2006 Jun-07 Number of New Checking Accounts (000's) 2.5 2.9 3.4 10.8 13.5 14.2 8.2 1.9 0 5 10 15 20 2004 2005 2006 Jun-07
Slide 27: Growth – Total Assets
GROWTH - Total Assets 16.3% CAGR $2,400 $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $1,145 $1,198 $1,439 $1,926 $2,178 $2,243 $2,275 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 (in Millions)
Slide 28: Diversification – Loan Mix
DIVERSIFICATION Loan Mix As of June 30, 2007 Consumer Installment 7.31% Owner Occupied RE 40.89% Commercial RE 38.44% Commercial & Industrial 13.36%
Slide 29: Commercial Real Estate
Commercial Real Estate As of June 30, 2007 Consumer Lot Loans 8.25% As of June 30, 2007 Consumer Installment 7.31% Owner Occupied RE 40.89% Commercial RE 38.44% Commercial & Industrial 13.3
Slide 30: Owner Occupied Real Estate
Owner Occupied Real Estate As of June 30, 2007 Consumer Installment 7.31% Owner Occupied RE 40.89% Commercial RE 38.44% Commercial & Industrial 13.36% Consumer - Owner Occupied 2nd Lien 8.27% Commercial - Owner Occupied 13.39% Consumer - Owner Occupied 1st Lien 13.01% Other 6.22%\
Slide 31: Growth – Total Deposits
GROWTH - Total Deposits 14.2% CAGR $898 $946 $1,174 $1,473 $1,707 $1,716 $1,783 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2002 2003 2004 2005 2006 1Q 2007 2Q 2007
Slide 32: Growth – Core Deposits
GROWTH – Core Deposits 13.2% CAGR $1,600 (in Millions) 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 $0 $200 $400 $600 $800 $1,000 $1,200 $749 $812 $1,012 $1,204 $1,335 $1,35 0 $1,414
Slide 33: Operating Efficiency
OPERATING EFFICIENCY 65.22% 66.49% 66.30% 30 35 40 45 50 2004 2005 2006 30.00% 40.00% 50.00% 60.00% 70.00% Number of Branches Efficiency Ratio
Slide 34: Ten-Year Asset Growth
Ten-Year Asset Growth (in thousands) $565,558 $750,077 $872,398 $969,848 $1,025,682 $1,144,948 $1,197,692 $1,436,977 $1,925,856 $2,178,413 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2,250,000
Slide 35: Ten-Year Net Income Growth
6,446 $8,271 $7,640 $10,533 $12,257 $13,834 $14,786 $14,016 $16,655 $19,805 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 36: Market Capitalization Over Ten Years
Market Capitalization Over Ten Years Ten-Year Net Income Growth (in thousands) $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 $350,000,000
Slide 37: Price Performance & Analyst Recommendations
Price Performance & Analyst Recommendations As of June 30, 2007 Source: Yahoo! Finance and Keefe, Bruyette & Woods Price data is adjusted for Stock Splits and Dividends Peers include 4 publicly traded banks headquartered in the Carolinas with assets between $1 billion and $5 billion. Analyst July 20
Slide 38: Investor Contacts
INVESTOR CONTACTS Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Operating and Financial Officer Richard C. Mathis Executive Vice President and Chief Risk Officer SCBT Financial Corporation 520 Gervais Street Columbia, South Carolina 29201 803-77
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