Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — Non-Deal Roadshow (February 2006)
35 slides from Southstate Bank's roadshow presentation, Feb 28, 2006
Slide 1: SCBT Financial Corporation
SCBT FinancialSCBT Financial CorporationCorporationBoston / New York Feb. 27 - Mar. 1, 2006
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: SCBT Financial Corporation Profile
SCBT Financial Corporation Profile o Lead bank founded in 1934 o 72nd Anniversary in 2006 o Bank subsidiaries - SCBT, N.A. - SCBT of the Piedmont, N.A. - SunBank, N.A. o Family of 500+ employees o 16 S.C. Counties o 47 financial centers
Slide 4: Executive Management Team
Executive Management Team o Robert R. Hill, Jr. President and CEO o John C. Pollok COO o Richard C. Mathis CFO o Joe E. Burns CCO o Dane H. Murray Division Head o John F. Windley Division Head o Thomas S. Camp President and CEO, SCBT of the Piedmont
Slide 5: SCBT Financial Corporation Profile
SCBT Financial Corporation ProfileSCBT Financial Corporation Profile ..Third largest independent commercial bankThird largest independent commercial bank headquartered in South Carolina o Eighth largest depository in South Carolina1 o Currently operates in 5 of the Southeast's Top 30 markets o Missi
Slide 6: Stock Market Information
SCBT Financial Corporation ProfileSCBT Financial Corporation ProfileSCBTSCBT-- Stock Market Information:Stock Market Information: Closing Price as of 12Closing Price as of 12--3030--20052005$33.42$33.42 Closing Price as of 2-22-2006 $34.77 2005 Earnings per share $ 2.03 2005 Cash Earnings per share
Slide 7: Financial Information as of 12-31-2005
SCBT Financial Corporation ProfileSCBT Financial Corporation ProfileFinancial Information as of 12Financial Information as of 12--3131--20052005(in thousands)(in thousands) Assets $1,926,000 Loans $1,536,000 Deposits $1,473,000 Shareholders' Equity $ 148,000 YTD 2005 Net interest margin 4.28 % YTD 2
Slide 8: Mission
MissionMissionTo beTo beSOUTH CAROLINA'S BankSOUTH CAROLINA'S Bank And A TopA Top--Performing Bank in thePerforming Bank in the SoutheastSoutheast
Slide 9: Repositioning SCBT Financial
`Repositioning' SCBT Financial o SC based management team assembled to build a statewide SC-based community bank o CEO succession occurred November 2004 o Re-branded as South Carolina Bank & Trust o Relocated headquarters to Columbia o Products and sales diversification o Emphasis upon organic growt
Slide 10: What Makes Us Successful?
What Makes Us Successful?What Makes Us Successful? o Customers o Employees o Management o Business Model
Slide 11: Focus on Customers
Focus on Customers o Relationship Banking - Putting the Customer First - Fast, Friendly and Accurate o 13,064 New Personal Checking Accounts opened in 2005... 21% greater than 2004 o 2,875 New Business Deposit Accounts opened in 2005... 14% greater than 2004
Slide 12: Focus on Employees
Focus on Employees o Honored by the American Psychological Association in 2004 for: "Best Practices for Employee Involvement" - Only 10 companies nationwide, and - Only 2 banks in the country o Employee Expectations Survey o Gallup 12 management tool o New Program-Employee Wellness implemented in 20
Slide 13: Business Model
Business ModelBusiness Model o Community Banking o Local Decisions o Centralized Processes o Think Big / Act Small o Balancing Soundness, Profitability & Growth o Experienced Relationship Managers & Employees o Building "South Carolina's Bank" brand o Will consider out-of-state markets, preferably i
Slide 14: 2005 Accomplishments
2005 Accomplishments o Completed acquisition of New Commerce BanCorp and Sun Bancshares, Inc. o Reported record YTD earnings, up approximately 18% over 2004 o Process Improvement Progress o Celebrated 1-year anniversary on NASDAQ Stock Market o Built new branch in northern York County o Organic Loan
Slide 15: 2006 Focus Areas
2006 Focus Areas o Core deposits o Training o Loan yields o Tellers, FSR's & o Fee revenue Managers o Efficiency o Improving financial performance of newer markets and branches
Slide 16: Financial Center Locations
Financial Center LocationsFinancial Center LocationsYork Greenville Orangeburg Bamberg Jasper Beaufort Colleton Dorchester Berkeley Florence Richland From the upstate to the coast......From the upstate to the coast...... Lexington oExisting Markets oTargeted Expansion Markets Horry Georgetown Charle
Slide 17: Market Share
Market ShareMarket ShareDeposits Market Rank Institution (State of Domicile) ($000) Share Branches 1 Wachovia Corp. (NC) 3,319,337 19.28 % 33 2 Bank of America Corp. (NC) 2,873,454 16.69 37 4 SCBT Financial Corporation (SC) 1,432,609 8.32 13 3 South Financial Group Inc. (SC) 2,124,057 12.34 17 5 1,4
Slide 18: Market Growth
Market GrowthMarket Growth8.06% 6.04% 4.84% 13.69% 13.23% 13.35% 0.00% 3.00% 6.00% 9.00% 5 Key South Carolina Markets* Southeast United States 0.00% 3.00% 6.00% 9.00% 12.00% 15.00% Population Income * MSA's : Columbia, Charleston-North Charleston, Greenville-Spartanburg- Anderson, Charlotte-Gastonia
Slide 19: Business Model - Balancing Soundness, Profitability & Growth
Business Model - Balancing: Soundness Profitability & Growth
Slide 20: Soundness: Net Charge-offs / Average Total Loans
0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 2000 2001 2002 2003 2004 3Q 2005 YTD 2005 SCBTFC Peers SOUNDNESSSOUNDNESSNet ChargeNet Charge--offs / Average Total Loansoffs / Average Total Loans0.14% 0.10% 0.11% Source: BHC Performance Report
Slide 21: Soundness: Asset Quality Ratios
SOUNDNESSSOUNDNESS20022002200320032004200420052005NonNon--Performing Assets /Performing Assets / Total Loans & OREO*Total Loans & OREO*0.67% 0.87% 0.43%0.67% 0.87% 0.43% 0.30%0.30% Allow. Loan Losses / Total Loans* 1.28% 1.25% 1.25%Allow. Loan Losses / Total Loans* 1.28% 1.25% 1.25% 1.30%1.30% Allow
Slide 22: Profitability: Earnings Per Share and Net Income
PROFITABILITY Earnings Per Share and Net IncomeEarnings Per Share and Net Income$10,533$12,257$13,834$14,786$14,016$16,655 $1.70 $1.72 $1.51 $1.82 $1.30 $2.03 $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 2000 2001 2002 2003 2004 2005 $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 $1.80 $2.10 (in Thousands)
Slide 23: Profitability: Return on Average Assets
PROFITABILITYPROFITABILITYReturn on Average AssetsReturn on Average Assets1.11% 1.21% 1.28% 1.23% 1.05% 1.00% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2000 2001 2002 2003 2004 2005
Slide 24: Profitability: Return on Average Equity
PROFITABILITY 13.64% 14.09% 13.14% 13.72% 14.00% 12.00% 10.00% Return on Average EquityReturn on Average Equity16.00% 8.00% 6.00% 4.00% 2.00% 0.00% 12.20% 13.19% 2000 2001 2002 2003 2004 2005
Slide 25: Performance Drivers: Net Interest Margin
PERFORMANCE DRIVERSPERFORMANCE DRIVERSNet Interest MarginNet Interest Margin --SCBT / PeerSCBT / Peer5.00% 4.29% 4.28% 4.50% 4.00% 4.06% 3.50% 3.00% 2000 2001 2002 2003 2004 3Q 2005 YTD 2005 SCBTFC Peers Source: BHC Performance Report
Slide 26: Performance Drivers: Total Non-Interest Income
PERFORMANCE DRIVERSPERFORMANCE DRIVERSTotal NonTotal Non--Interest Income with Major ContributorsInterest Income with Major Contributors{Ongoing Diversification of Operating Income Stream}{Ongoing Diversification of Operating Income Stream} $22,915 {31%} $10,971 {21%} $13,680 {24%} $17,681 {27%} $22
Slide 27: Deposit Service Income Ratios
Deposit Service Income Ratios Ranked 16th nationally among Community Banks $1Billion -$5Billion in Assets Data as of December 2004 (latest full year available) Service Charges on Deposit Accounts $11,854 Total Interest Income $67,908 Total Noninterest Income $22,651 % Service Charges to Total Income
Slide 28: Growth: Total Assets
GROWTHGROWTH --Total AssetsTotal Assets$970 $1,026 $1,145 $1,198 $1,439 $1,926 $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 (in Millions) 2000 2001 2002 2003 2004 2005 14.7%CAGR
Slide 29: Diversification: Loan Mix
DIVERSIFICATIONDIVERSIFICATION Loan MixLoan MixCRE & Commercial Secured by Real Estate 42% Consumer Real Estate 27% Equity Line 9% Commercial & Industrial 12% Consumer 10% As of December 2005
Slide 30: Growth: Total Deposits
GROWTHGROWTH --Total DepositsTotal Deposits$758 $812 $898 $946 $1,174 $1,473 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 (in Millions) 2000 2001 2002 2003 2004 2005 14.2%CAGR
Slide 31: Diversification: Deposit Mix
DIVERSIFICATIONDIVERSIFICATION Deposit MixDeposit MixMMDA 18% Demand Deposits (NIBL) 17% Time Deposits 41% Now Accounts 19% Savings 5% As of December 2005
Slide 32: Cash Dividends Per Share
SCBT FINANCIAL CORPORATIONSCBT FINANCIAL CORPORATIONCash Dividends Per ShareCash Dividends Per Share$0.47 $0.50 $0.54 $0.63 $0.65 $0.68 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 2000 2001 2002 2003 2004 2005 7.7%CAGR Per share data reflect a ten percent stock dividend distributed on Dece
Slide 33: Five-Year Price Performance
Five-Year Price Performance SCBT 233.5% Peer Average 53.1% Nasdaq Bank Index 15.2% Price PerformancePrice Performance5 Year Total Return for Stock 275.0% 300.0% 250.0% 225.0% 200.0% 175.0% 150.0% 125.0% 100.0% 75.0% 50.0% 25.0% 0.0% -25.0% -50.0% SCBT Nasdaq Bank Peer Average Source: Yahoo! Finance
Slide 34: Total Return Analysis
Total Return AnalysisTotal Return AnalysisFive-Year Total Return (%) 233.5 240 200 160 120 80 40 0 53.1 15.2 SCBT Financial Peer Average NASDAQ Bank Corporation Index Source: Yahoo! Finance and Keefe, Bruyette & Woods Data as of December 31, 2005 Return data is adjusted for Stock Splits and Reinvest
Slide 35: Investor Contacts
SCBT Financial CorporationSCBT Financial CorporationInvestor Contacts:Investor Contacts: Richard C. Mathis Executive Vice President and Chief Financial Officer Robert R. Hill, Jr. President and Chief Executive Officer SCBT Financial Corporation 520 Gervais Street Columbia, South Carolina 29201 803-7