Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — Investor Presentation (November 2009)
41 slides from Southstate Bank's investor presentation, Nov 12, 2009
Slide 1: Robert R. Hill, Jr. and John C. Pollok
Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Operating Officer and Chief Financial Officer
Slide 2: Forward-Looking Statements
We Believe In Our Communities 2 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 p
Slide 3: Third largest independent commercial bank headquartered in South Carolina
We Believe In Our Communities 3 Third largest independent commercial bank headquartered in South Carolina Serving the banking needs of customers within the Carolinas for 75 years Strong asset quality and credit underwriting remain the fundamentals of SCBT
Slide 4: Goals and Priorities: Protect our balance sheet
We Believe In Our Communities 6 Goals and Priorities Protect our balance sheet Capital Capital raises - $56.0 million Redeemed preferred stock & common stock warrant Increased ALLL – 1.55% (3Q09) vs. 1.28% (3Q08) Liquidity Increased core deposits Reduced leverage
Slide 5: Goals and Priorities: Prepare for the future
We Believe In Our Communities 7 Goals and Priorities Prepare for the future Challenging environment Market disruption - attract customers and bankers FDIC Assisted deals Build out markets in South Carolina and Charlotte Top 5 market share in all markets
Slide 6: Branch Footprint
We Believe In Our Communities 8 Branch Footprint Columbia Charlotte Georgetown Hilton Head Charleston Greenville SCBT Regions Charlotte Greenville Columbia Georgetown Orangeburg/Low Country Charleston Hilton Head Orangeburg/Low Country 48 Branch Franchise
Slide 7: S.C. Deposit Market Share
We Believe In Our Communities 9 S.C. Deposit Market Share Note: SCBT moved from 7th per 6/30/08 FDIC Summary of Deposits Source: FDIC Summary of Deposits as of 6/30/2009. Rank Institution ($000) Deposits Share Market Branches 1 Wachovia (NC) $11,463,352 16.42% 150 2 Bank of America (NC) 8,075,624 11
Slide 8: Charlotte Deposit Market Share
We Believe In Our Communities 10 Charlotte Deposit Market Share Note: SCBT moved from 8th per 6/30/08 FDIC Summary of Deposits Source: FDIC Summary of Deposits as of 6/30/2009. Rank Institution ($000) Deposits Share Market Branches 1 Wachovia (NC) $93,092,572 50.61% 78 2 Bank of America (NC) 76,906,
Slide 9: Market Performance
We Believe In Our Communities 11 Market Performance Source: SNL Financial and Company filings. 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 classi
Slide 10: Capital
We Believe In Our Communities 12 Capital Source: SNL Financial and Company filings. Date as of 6/30/09. 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 I
Slide 11: Capital
Capital We Believe In Our Communities 13 % of Capital 3rd Qtr 2008 3rd Qtr 2009 Construction Land / Development 206.4% 157.8% Construction / Land w.o Residential Lots 161.7% 118.2% Total CRE 322.3% 259.4% Total CRE w.o Residential Lots 277.6% 219.8%
Slide 12: Loan Portfolio – Type & Market
We Believe In Our Communities 14 Loan Portfolio – Type & Market Loan Portfolio by Type at September 30, 2009 Commercial owner occupied 21% Commercial & Industrial 9% Consumer Owner Occupied 13% Other Income Producing Property 6% Home Equity Loans 11% Consumer 3% Other Loans 1% Commercial non-owner o
Slide 13: Loan Portfolio Summary - Type Net Change - Year over Year
We Believe In Our Communities 15 Loan Portfolio Summary - Type Net Change - Year over Year (dollars in thousands) Sep-08 Sep-09 $ Change % Change Construction / land development $558,261 $484,540 $(73,721) -13.21% Commercial non-owner occupied 313,637 311,903 (1,734) -0.55% Consumer owner occupied 2
Slide 14: Average Loan Size
We Believe In Our Communities 16 Average Loan Size Top 20 Relationships 9.7% of total loans Loan Type Avg Loan Size (in 000’s) Construction / Land Development $ 246 Commercial Non Owner Occupied $ 426 Total CRE $ 295 Other $ 123 Consumer Owner Occupied $ 70 Commercial Owner Occupied $ 350 Commercial
Slide 15: Charge-offs YTD – September 2009
We Believe In Our Communities 17 Charge-offs YTD – September 2009
Slide 16: Reasons For SCBT Asset Quality
We Believe In Our Communities 18 Reasons For SCBT Asset Quality Markets did not get as overheated Credit Underwriting & Risk Selection 1. Small average loan size 2. Strong sponsors/guarantors 3. Active Pipeline Management 4. Team Approach – Joint Ownership of Portfolio by Line & Loan Administration
Slide 17: Credit Quality
We Believe In Our Communities 19 Credit Quality Source: SNL Financial and Company filings. Date as of 6/30/09. 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 GIC
Slide 18: Non-Performing Assets
We Believe In Our Communities 20 Non-Performing Assets Source: SNL Financial and Company filings. Date as of 6/30/09. 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
Slide 19: Investment Portfolio Mix
We Believe In Our Communities 21 Investment Portfolio Mix *Fair value for AFS securities; amortized/accreted cost for HTM securities. Does not include FRB stock, FHLB stock, or investment in unconsolidated subsidiaries. Investment Portfolio (AFS & HTM) As of 9/30/09 Tax Equivalent Yield 4.80% Weight
Slide 20: Growth – Total Deposits
We Believe In Our Communities 22 13.9% 8 YR CAGR (2000 – 2008) Growth – Total Deposits Growth – Total Deposits 12.6% 8 YR CAGR (2000 – 2008) Growth – Core Deposits* Core deposits grew $186 million, since Dec-08 Total deposits decreased $26 million mainly attributable to a decrease in CDs Growth – Co
Slide 21: Improving Deposit Mix
Improving Deposit Mix We Believe In Our Communities 23 *Core Deposits exclude all certificates of deposits
Slide 22: Deposits – Mix & Market
We Believe In Our Communities 24 Deposits – Mix & Market Deposits by Major Market at September 30, 2009 CDs < $100,000 21% CDs> $100,000 22% Demand Deposits 16% Savings 8% Interest-bearing Deposits 33% Charlotte / NCBT 20% Georgetown 4% Beaufort 10% Other 2% Charleston 4% Orangeburg / Low Country 39
Slide 23: Net Interest Margin (TE)
We Believe In Our Communities 25 Net Interest Margin (TE) Source: BHC Performance Report. Peers are BHC with assets between $1 billion & $3 billion
Slide 24: Profitability
We Believe In Our Communities 26 Profitability 26 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 dispo
Slide 25: Dividends
Dividends We Believe In Our Communities 27 Dividend paid for 136 consecutive quarters since 1976 Prior to 1976, dividends were paid semi-annually * Includes 4Q 2009 dividend declared 10/16/09, payable on 11/13/09
Slide 26: Operating Efficiency
We Believe In Our Communities 28 Operating Efficiency 28
Slide 27: Analyst Recommendations
We Believe In Our Communities 29 Analyst Recommendations ANALYST Third Quarter 2009 RECOMMENDATION FIG Partners OUTPERFORM Keefe, Bruyette & Woods MARKET PERFORM SunTrust Robinson Humphrey BUY Howe Barnes Hoefer & Arnett, Inc. NEUTRAL Sandler O’Neill + Partners HOLD Wunderlich Securities BUY
Slide 28: Index – Supplemental Information
Index – Supplemental Information Unemployment rates in SCBT markets SC real estate markets Loan portfolio summary – Type Loan portfolio – Commercial real estate detail Credit quality ratios Allowance for loan loss Net charge-offs by market NPA’s by type NPA’s by market Securities portfolio Fee incom
Slide 29: Supplemental Information
We Believe In Our Communities 31 Supplemental Information
Slide 30: Unemployment Rates in SCBT Markets
We Believe In Our Communities 32 Unemployment Rates in SCBT Markets Columbia Charlotte Georgetown Hilton Head Charleston Greenville SCBT Regions Charlotte Greenville Columbia Georgetown Orangeburg/Low Country Charleston Hilton Head 8.7% 10.7% 14.2% 10.7% 9.0% 18.1% 18.7% 10.3% 12.5% 11.7% 10.9% 9.5%
Slide 31: S.C. Real Estate Markets
We Believe In Our Communities 33 S.C. Real Estate Markets Source: September 2009 Rates from S.C. Realtors MLS Stats Number of Residential Homes, Condos & Villas Sold Median Price of Residential Homes (in Thousands) Average Days on the Market (DOM) 2008 YTD 2009 YTD % Change 2008 2009 % Change 2008 Y
Slide 32: Loan Portfolio Summary - Type
We Believe In Our Communities 34 Loan Portfolio Summary - Type (dollars in thousands) Sep-08 Dec-08 Mar-09 Jun-09 Seo-09 Construction / land development $558,261 $ 535,638 $519,689 $ 489,730 $484,730 Commercial non-owner occupied 313,637 330,792 325,132 318,909 311,903 Consumer owner occupied 288,80
Slide 33: Loan Portfolio – Commercial Real Estate Detail
We Believe In Our Communities 35 Loan Portfolio – Commercial Real Estate Detail Commercial Non-Owner Occupied Residential MF 9% Multi-use 8% Special Use Prop 6% Commercial Unimproved 5% Industrial Light 5% Hotels / Motels 3% All Other 4% Office 32% Misc 3% Retail 18% Construction / Land Development
Slide 34: Credit Quality Ratios
We Believe In Our Communities 36 Credit Quality Ratios 3Q’08 4Q’08 1Q’09 2Q’09 3Q’09 Non-Performing Assets / Total Assets* 0.54% 0.76% 1.09% 1.46% 1.56% Non-Performing Assets / Total Loans & OREO* 0.66% 0.91% 1.34% 1.83% 1.96% Allow. Loan Losses / Total Loans* 1.28% 1.36% 1.40% 1.45% 1.55% Allow. Lo
Slide 35: Allowance for Loan Losses
We Believe In Our Communities 37 Allowance for Loan Losses (dollars in thousands) 3 Months Ended 9/30/09 3 Months Ended 6/30/09 NCO’s as a % of YTD Ave. Loan Portfolio Annualized QTD 9/30/09 QTD 6/30/09 Allowance at Beginning of Period $ 32,431 $ 32,094 Net Charge-Offs (Recoveries): Construction/Lan
Slide 36: Net Charge-offs by Markets
We Believe In Our Communities 38 Net Charge-offs by Markets (dollars in thousands) 3 Months Ended 9/30/09 3 Months Ended 6/30/09 NCO’s as a % of YTD Ave. Loan Portfolio Annualized QTD 9/30/09 QTD 6/30/09 Net Charge-Offs (Recoveries): Beaufort/Charleston $1,778 $989 0.32% 0.17% Georgetown 76 275 0.01
Slide 37: NPAs by Type
We Believe In Our Communities 39 NPAs by Type (dollars in thousands) Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 % of Total NPAs Sep-09 Construction/Land Development $ 7,214 $ 8,129 $11,609 $ 18,308 $ 21,241 49.0% Commercial Non-Owner Occupied 1,191 1,807 1,197 2,063 4,088 9.4% Commercial Owner Occupied 485
Slide 38: NPAs by Markets
We Believe In Our Communities 40 NPAs by Markets (dollars in thousands) Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 % of Total NPAs Sep-09 Beaufort / Charleston $2,354 $ 3,216 $ 8,325 $ 7,557 $ 11,960 27.58% Georgetown 3,728 7,392 5,387 8,990 8,978 20.70% Orangeburg / Low Country 1,939 2,044 3,998 7,388 7,48
Slide 39: Securities Portfolio
We Believe In Our Communities 41 Securities Portfolio At September 30, 2009 (Dollars in thousands) Includes held-to-maturity and available-for-sale municipal securities. (2) Net of tax effects at 38%. Note: All Agency MBS and CMOs carry the backing of the agency or GSE and have an implied AAA rating
Slide 40: Fee Income By Type
We Believe In Our Communities 42 Fee Income By Type 3Q’08 4Q’08 1Q’09 2Q’09 3Q’09 Service charges on deposit accounts $4,157 $4,123 $3,585 $3,819 $4,089 Bankcard services income 1,247 1,153 1,182 1,290 1,278 Mortgage banking income 507 678 1,261 2,134 1,451 Trust and investment services income 725 6
Slide 41: Investor Contacts
We Believe In Our Communities 43 Investor Contacts Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Operating Officer and Chief Financial Officer Richard C. Mathis Executive Vice President and Treasurer 520 Gervais Street Columbia, South Carolina 2
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