Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — KBW Community Bank Investor Conference 2005
37 slides from Southstate Bank's conference presentation, Jul 26, 2005
Slide 1: SCBT Financial Corporation – KBW Community Bank Investor Conference
SCBT Financial Corporation KBW Community Bank Investor Conference July 26, 2005
Slide 2: Forward Looking Statements
bd 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
Slide 3: SCBT Financial Corporation Profile
Y, CBT Financial Corporation Profile = Lead bank founded in 1934 = 70" Anniversary in 2004 = Bank subsidiaries — SCBT,N.A. — SCBT of the Piedmont, N.A. = 36 financial centers = 12S.C. Counties = Family of 500+ employees
Slide 4: SCBT Financial Corporation Profile
bd SCBT Financial Corporation Profile = Third largest independent commercial bank headquartered in South Carolina = Eighth largest depository in South Carolina! = Currently operates in 4 of the Southeast’s Top 30 markets = Dedicated to building a statewide community bank " Source: FDIC Website
Slide 5: SCBT Financial Corporation Profile – Stock Market Information
bf SCBT Financial Corporation Profile SCBT - Stock Market Information: Sales Price as of 7-19-2005 $32.84 YTD Earnings 2005 $ 1.01 Last Cash Dividend (Annualized) $ 68 Book Value (6-30-2005) $15.43 Price / Earnings (TTM) 17 5x Price to Book Value 213 % Dividend Yield 2.1 % NASDAQ Stock Market —symbo
Slide 6: SCBT Financial Corporation Profile – Financial Information
bf SCBT Financial Corporation Profile Financial Information as of 6-30-2005 (in thousands) Assets $1,690,000 Loans $1,320,000 Deposits $1,324,000 Equity $ 124,000 YTD 2005 Net interest margin 4.32% YTD 2005 Return on assets 1.05 % YTD 2005 Return on equity 13.61 % Equity / Assets 7.37%
Slide 7: Mission
D4 Mission To be SOUTH CAROLINA’S Bank -*™ And.... A Top-Performing Bank in the Southeast
Slide 8: Repositioning SCBT Financial
b Repositioning’ SCBT Financial = SC based management team assembled to build a statewide SC-based community bank = CEO succession occurred November 2004 = Re-branded as South Carolina Bank & Trust = Relocated headquarters to Columbia = Products and sales diversification = Emphasis upon organic grow
Slide 9: What Makes Us Successful?
t What Makes Us Successful? = Customers = Employees m= Management = Business Model
Slide 10: Relationship Banking – Focus on Customers
bd = Relationship Banking — Putting the Customer First — Fast, Friendly and Accurate Focus on Customers = New Personal Checking Accounts in 2005 — June YTD 6,516 = New Business Deposit Accounts 1530 = Cross-Sell Ratio 3.0
Slide 11: Focus on Employees
bd = 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 = Employee Expectations Survey = Gallup 12 management tool = New Program- Employee Wellness being implemented Focus on Emplo
Slide 12: Community Banking Business Model
bd = Community Banking = Local Decisions = Centralized Processes = Think Big / Act Small = Balancing Soundness, / Profitability & Growth i -.te 2s = Experienced Relationship Managers & Employees = Building “South Carolina’s Bank” brand = Will consider out-of-state markets, preferably in contiguous a
Slide 13: 2005 Goals
2005 Goals = Continued expansion in Upstate, Midlands & Coast = Build “South Carolina’s Bank” brand = ‘Process Improvement’ with goal of $1 million = Continued double-digit growth in Loans & Deposits = Drive ROE & Earnings Growth to historical levels
Slide 14: 2005 Accomplishments
bd = Completed acquisition of New Commerce BanCorp = Reported record YTD earnings, up approximately 22% over 2004’s 1% half earnings = Process Improvement Progress = Celebrated 1-year anniversary J on NASDAQ Stock Market Tm = Opening new branch in northern York County = Organic Loan growth up 19% fr
Slide 15: Future Expansion
bd = Expansion in existing and new markets = Eventually enter: — Charleston — Myrtle Beach — Spartanburg/Anderson Future Expansion
Slide 16: Recent Development – Sun Bancshares Acquisition
@ Recent Development = SCBT Financial Corporation has announced that it will acquire Sun Bancshares Inc. = High growth Myrtle Beach / ‘Grand Strand’ area of South Carolina’s coast = SunBank, N.A. will operate as a separate bank subsidiary for a period of time = Acquisition expected to be completed i
Slide 17: Branch Locations
t Branch Locations +Existing Markets +Targeted Expansion Markets + SunBank Offices (Proposed Acquisition)
Slide 18: Market Share
bd Market Share Deposit Market Share by Zip Codes Where SCBT Has Branch Offices Deposits Market Rank Institution (State of Domicile) (S000) Share Branches 1 ‘Wachovia Corp. (NC) 2467336 -2146% 27 2 Bank of America Corp. (NC) 2219652 19.29 25 South Financial Group Ine 4 ial Corporation (SC) 3 BB&T Co
Slide 19: Business Model – Balancing Soundness, Profitability & Growth
bd Business Model - Balancing: Soundness Profitability & Growth
Slide 20: Soundness – Net Charge-offs / Average Total Loans
» SOUNDNESS Net Charge-offs / Average Total Loans 0.35% 0.30% 0.25% ee 0.20% 0.15% —"s ~\ 10% 0.10% 0.05% = 0.04% 0.00% 2000 2001 2002 2003 2004 | 1.2005 © SCBTFC = Peers
Slide 21: Soundness – Asset Quality Ratios
v SOUNDNESS 2002 2003 2004 2Q 2005 Non-Performing Assets / Total Loans & OREO* 0.67% 0.87% 0.43% 0.43% Allow. Loan Losses / Total Loans* 1.28% 1.25% 1.25% 1.28% Allow. Loan Losses / Non-Performing Loans* 233% 173% 443% 390% Net Charge-offs / Average Loans 0.25% 0.19% 0.15% 0.05% * Period end date Lo
Slide 22: Profitability – Earnings Per Share and Net Income
® PROFITABILITY Earnings Per Share and Net Income $18,000 $2.0 $1.70 = S172 ery $15,000 AG $1.50 Fsiz,00 + $150 3 $1.20 E $9,000 cS eS $0.90 $6,000 4 $ $0.60 $8009. $030 $0 + $0.00 2000 2001 2002 2003 2008 -2Q 2005 Net income EPS Per share data reflect a ten percent stock dividend distributed on Dec
Slide 23: Profitability – Return on Average Assets
PROFITABILITY Return on Average Assets " 1.28% 1.21% 1.23% 1.11% 1.05% 1.05% 2000 2001 2002 2003 2004 2Q 2005
Slide 24: Profitability – Return on Average Equity
PROFITABILITY Return on Average Equity 13.64% 14.09% 23.14% 13.61% 13.72% | / 2002 2003, 2004 2Q 2005 2000 2001
Slide 25: Performance Drivers – Net Interest Margin
“PERFORMANCE DRIVERS Net Interest Margin — SCBT / Peer 5.00% » 9 4.50% 4.31% 4.32% 4.00% SN = 4.01% 3.50% 3.00% 2000 2001 2002 2003 2004 = 1Q 2005 |2Q 2005 ___ SCBTFC = Peers
Slide 26: Performance Drivers – Total Non-Interest Income
PERFORMANCE DRIVERS Total Non-Interest Income with Major Contributors {Ongoing Diversification of Operating Income Stream} $25,000 $22,915 {31%} $02,651 {30%} | $17,681 {27%} (in Thousands) 2003 2004 2Q 2005 ‘ODeposit Service Fees M@ Secondary Mig Orig Fees G Wealth Management GAll Other © Assets So
Slide 27: Deposit Service Income Ratios
' Deposit Service Income Ratios Ranked 16' nationally among Community Banks $1 Billion - $5Billion in Assets Data as of December 2004 Service Charges on Deposit Accounts $11,854 Total Interest Income $67,908 Total Noninterest Income $22,651 % Service Charges to Total Income 13.09% Peer Group Aggrega
Slide 28: Growth – Total Assets
' GROWTH - Total Assets $1,800 $1,690 $1,439 $1,500: si4s SL198 $1,200 SL026 * $0 (in Millions) g g 2001 2002 2003 2004 2Q 2005
Slide 29: Diversification – Loan Mix
“DIVERSIFICATION Loan Mix As of June 2005
Slide 30: Growth – Total Deposits
' - so Total Deposits on $1,324 . $1,174 $1,200 $946 7 $1,000 $812 = $758 € $800 5 2 $600 $400 $200 $0 002, 2003 2004 2Q 2005
Slide 31: Diversification – Deposit Mix
“DIVERSIFICATION Deposit Mix
Slide 32: Market Growth
Market Growth Projected 2004-2009 9.00% 13.69% 13.23% 13.35% ine =— = 12.00% 8.00% 9.00% a 2 x 0.00% 3.00% had Se x 3 3S + 3.00% 00% 4 | o.oo 5 Key South Carolina Southeast United States Markets* @@™ Population —® Income * MSA’s : Columbia, Charleston-North Charleston, Greenville-Spartanburg- Anders
Slide 33: Dividends Per Share
“# scat FINANCIAL CORPORATION iP Dividends Per Share $0.80 $0.70 $063 $0.68 oy 54 9060) sy47 $0.50 $0.50 a0 $0.34 $0.30 $0.20 $0.10: $0.00 2Q 2005 Per share data reflect a ten percent stock dividend distributed on December 6, 2002 and a five percent stock dividend distributed on January 1, 2005
Slide 34: Five-Year Price Performance
Five-Year Price Performance Peer Average Price Performance == as ssdaq Bank —~ Peers
Slide 35: Total Return Analysis
bd Total Return Analysis Five-Year Total Return (%) 145.9 150: 135 120: 105 60 35.2 SCBT Financial Peer Average + NASDAQ Bank Corporation Index ocr: Yin Parcs Kt ry & Wd Data a fd 39,2008 Return datas aajstd or Stock Splits and Renvesiment of Duidends Peer group inctudes 4 public waded banks headqua
Slide 36: SCBT Financial Corporation – Contact
bd SCBT Financial Corporation Richard C. Mathis Executive Vice President and Chief Financial Officer SCBT Financial Corporation 520 Gervais Street Columbia, South Carolina 29201 803-771-2265 www.SCBandT.com
Slide 37: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ GRA PHIC] SCBT Financial Corporation KBW Community Bank Investor Conference July 26, 2005 For ward Looking Statements: Statements contained in this presentation, which are not historical facts, are forward-looking statements. In addition, SCBT Financ
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