Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — Merger or Acquisition (September 2012)
58 slides from Southstate Bank's merger presentation, Sep 19, 2012
Slide 1: Forward-Looking Statements
Forward-Looking Statements 2 Statements included in this press release 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 Corpor
Slide 2: SCBT Financial Corporation: Largest Publicly Traded Holding Company Headquartered in SC
Atlanta Athens Charleston Spartanburg Greenville Charlotte Savannah GEORGIA North Carolina 3 branches South Carolina 53 branches Georgia 20 branches SCBT Financial Corporation: Largest Publicly Traded Holding Company Headquartered in SC Serving the banking needs of customers within the Carolinas for
Slide 3: How We Operate the Company
How We Operate the Company Soundness LEADERSHIP FINANCIAL CORPORATION"
Slide 4: Market Performance
Market Performance 5 See endnotes (1) Price Performance since 12/31/07 43.2% 28.8% (25.4%) (69.9%) (78.4%)
Slide 5: Profitability
Profitability 6 In Millions See endnotes (2)
Slide 6: Highlights of SCBT
Highlights of SCBT Consistent Organic Growth Large and Low Cost Deposit Base Fee Income Growth and Diversity 7 Fortress Balance Sheet Organic Revenue And Profit Growth Strategic Expansion Building Tangible Book Value per Share Quality Loan and Deposit Relationships Simple Business Model and Balance
Slide 7: Southeast Banking Landscape
Southeast Banking Landscape Distribution of Banks Distribution of Assets ($bn) Southeast Bank Universe (1) 1,559 Banks across the Southeast 115 84 134 145 218 196 70 84 99 62 176 176 8 See endnotes (24)
Slide 8: SCBT States of Operation – GA, NC, and SC
SCBT States of Operation – GA, NC, and SC Distribution of Banks Distribution of Assets ($bn) SCBT States of Operation – GA, NC, SC (1) 372 Banks across GA, NC, and SC 218 70 84 9 See endnotes (25)
Slide 9: Goals and Priorities
Goals and Priorities Evaluate M&A opportunities Take advantage of market turbulence Selective organic growth Focus on market share in South Carolina, North Carolina, and Georgia Historical Return Levels Continue credit improvement Continue Efficiency Improvements 10 External Internal Earnings
Slide 10: Experienced Executive Management Team
Experienced Executive Management Team 11 Executive Position Years in Banking Years with SCBT Robert R. Hill, Jr. CEO 24 17 John C. Pollok Sr. EVP, CFO/COO 26 16 Joe E. Burns Sr. EVP, CRO 35 12 John F. Windley President, CBO 36 10 Renee R. Brooks EVP, CAO 20 16
Slide 11: Demographic Highlights in Key Markets
Demographic Highlights in Key Markets 12
Slide 12: Median Household Income
13 Median Household Income SCBT SAVB See endnotes (20) $84,000-$116,778 $70,001-$84,000 $41,000- $70,000 (Median $43,745) $27,001-$41,000 $8,889-$27,000
Slide 13: Deposit Market Share by MSA
14 Charlotte 1 Bank of America 79.6 % 2 Wells Fargo 11.4 % 3 BB&T Corp 2.1 % 4 Fifth Third Bank 0.9 % 5 Sun Trust Banks Inc. 0.8 % 10 SCBT Financial Corp 0.3 % Total $ 160.7 Billion 100.0 % Columbia 1 Bank of America 79.6 % 2 Wells Fargo 11.4 % 3 BB&T Corp 2.1 % 4 Fifth Third Bank 0.9 % 5 Sun Trust
Slide 14: SCBT: Positioned for the Future
SCBT: Positioned for the Future 15 Atlanta Athens Greenville Spartanburg Charlotte Columbia Charleston Savannah Gainesville Solid Population Growth NC & SC top 5 in US for projected population growth (2011-2016) Georgia ranked #14 in US for projected population (2011-2016) Strong Production Georgia
Slide 15: Savannah's Economic Drivers
Savannah’s Economic Drivers Nations 4th busiest and fastest growing port Port supports 55,000 jobs in surrounding counties Port provides 350,000 jobs statewide Georgia Ports Authority is working toward approval for deepening the Savannah River by 6 feet Major military bases- Fort Stewart and Hunter
Slide 16: Major Economic Announcements
Major Economic Announcements Top Employer Military- 22,000 employees Boeing’s 787 Dreamliner Project- 4,000 jobs Charleston’s port - deepest channels in the south east with more than 260,000 jobs linked to port BMW expansion-300 new jobs Michelin - 270 new jobs Amy’s Kitchen new production facility-
Slide 17: Major Economic Announcements
Major Economic Announcements 18 Columbia MSA Charlotte MSA AQT Solar Inc. -1,000 more jobs Michelin - 270 new jobs WNS- a leading provider of global (BPO) services will establish its first North American facility 5,000 new jobs in the past 6 months Duke Energy merger with Progress Energy creates lar
Slide 18: Savannah Bancorporation
Savannah Bancorporation
Slide 19: Pro Forma Highlights
Kiawah Island Pro Forma Highlights Strategic Market Expansion 20 Ticker: SCBT (NASDAQ) Headquarters: Columbia, SC Founded: 1933 Branches: 87 Assets: $5.3 billion Loans: $3.8 billion Deposits: $4.5 billion Charleston Kiawah Island Hilton Head Island Savannah SCBT branch SAVB branch
Slide 20: Savannah Bancorp, Inc. Deposit Market Share of Combined Counties Served
Savannah Bancorp, Inc. 21 Deposit Market Share of Combined Counties Served (1) The Savannah Bancorp, Inc. Source: SNL Financial Deposit market share data as of 6/30/11; financial data as of 6/30/12 (1) Combined counties served include Beaufort and Jasper, SC and Chatham and Bryan, GA Headquarters Sa
Slide 21: Transaction Rationale
Transaction Rationale Entrance into desirable Savannah market with strong demographics Increases existing market share in both Georgia and South Carolina Total market share in combined counties served # 3 - SCBT formerly # 8 22 Strategic Expansion Financially Attractive Low Risk Profile Accretive to
Slide 22: Transaction Terms
Transaction Terms 23 Buyer: SCBT Financial Corporation (NASDAQ: SCBT) Seller: The Savannah Bancorp, Inc. (NASDAQ: SAVB) Transaction Value: (1) $67.1 million Fixed Exchange Ratio: 0.2503 shares of SCBT common stock for each share of SAVB common stock Price per Share: $9.31 Consideration: 100% Stock P
Slide 23: Soundness
SUUNDNESS
Slide 24: Credit Quality
Credit Quality 25 See endnotes (7) SCBT and Peer data as of June 30,2012
Slide 25: Capital
Capital 26 See endnotes (7) Total $91 million $27M October 2008 $29M May 2009 $35M February 2011 Capital Raises SCBT and Peer data as of June 30,2012
Slide 26: Profitability
PROFITABILITY
Slide 27: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power In Millions Pre-tax, Pre-Credit Earnings $121.2 $74.8 $37.0 Represents after-tax gain from FDIC Acquisitions See endnotes (8)
Slide 28: Net Interest Margin
29 5.00% 4.50% 4.00% | 3.50% - 3.00% 2008 Net Interest Margin 2009 2010 2011 MSCBTFC m Peers 1ai2 2012 FINANCIAL CORPORATION"
Slide 29: Operating Efficiency
Operating Efficiency 30 See endnotes (9)
Slide 30: Dividends
Dividends 31 See endnotes (10)
Slide 31: [LOGO]
[LOGO]
Slide 32: Loan Portfolio – 2Q 2012
33 Loan Portfolio – 2Q 2012 * In millions 9.19% 9.34% 22.27% 25.10% 7.50% 4.35% 2.87% 0.96% 11.11% 7.31% Construction / Land Development $279.5 Commercial Non Owner Occupied $284.1 Consumer Owner Occupied $677.4 Commercial Owner Occupied $763.3 Commercial & Industrial $228.0 Other Income Producing P
Slide 33: Organic Loan Growth / Decline
Organic Loan Growth / Decline 34 In Millions
Slide 34: Growth – Core & Total Deposits
Growth – Core & Total Deposits 35 In Millions Growth – Core Deposits* 25.0% 5 YR CAGR (2007 – 2011) Growth – Total Deposits 21.6% 5 YR CAGR (2007 – 2011) Acquired Deposits $3,254 $2,511 $3,357 See endnotes (11) $3,661
Slide 35: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 36: Index – Supplemental Information
Index – Supplemental Information Largest Relationships 38 Vintage/New Loan Mix 39 Construction / Land Development Loans 41 ALLL Trend 42 Credit Trends 43 Non Performing Loans 45 NPA’s & Classifieds by Region/Type 46 Loss Share Performance 47 Business Mix By Market 48 Deposits 49 Investment portfolio
Slide 37: Largest Credit Relationships (Non-Acquired)
Largest Credit Relationships (Non-Acquired) 38 Number of Loan Relationships 25 50 100 200 Total Relationship Commitment $ % Top 25 255.7 $ 8.59% Top 50 389.3 $ 13.08% Top 100 572.4 $ 19.24% Top 200 825.0 $ 27.73% Total Commitments 2,975.4 $ 100.00% Total Relationshp Balance $ % Top 25 170.9 $ 6.89%
Slide 38: Vintage / New Loan Mix
Vintage / New Loan Mix – 2 Q 2012 39 See endnotes (12,22)
Slide 39: Construction / Land Development Loans (Non-Acquired)
41 Construction / Land Development Loans (Non-Acquired) * In millions $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 $54.0 $123.2 $9.7 $17.4 $75.2 4Q07 2Q12
Slide 40: ALLL Trend Data (Non-Acquired Loans)
ALLL Trend Data (Non-AcquiredLoans) 42 2.00 % 1.91 % See endnotes (13)
Slide 41: Credit Trends
43 See endnotes (14) Credit Trends (in millions) Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Total nonperforming assets 93.7 $ 96.1 $ 94.9 $ 91.4 $ 83.1 $ Texas Ratio (14) 27.25% 27.13% 26.88% 25.41% 21.23% Criticized Loans (14) 172.4 $ 194.3 $ 170.3 $ 162.0 $ 151.0 $ Classified Assets (14) 188.8 180.3 184.4
Slide 42: 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) 44 See endnotes (15)
Slide 43: Non-Performing Loans
Non-Performing Loans 45 As of June 30, 2012 See endnotes (16) SCBT and Peer data as of June 30,2012 Construction / Land Dev 36% Commercial Non Owner Occ 11% Consumer Owner Occ 16% Commercial Owner Occ 27% Commercial & Industrial 2% Other Income Producing Property 8% Consumer Non Real Estate 0% Other
Slide 44: Regions (Non-Acquired) NPAs, Classified Loans & OREO
Regions (NonAcquired) 46 NPA’s Classified Loans & OREO See endnotes (17) 2Q11 3Q11 4Q11 1Q12 2Q12 Inland 24,102 $ 27,936 $ 29,522 $ 29,539 $ 28,685 $ Coastal 55,218 52,117 49,279 44,759 39,788 Charlotte MSA 11,250 13,240 13,821 14,835 12,690 CBT 3,160 2,773 2,327 2,258 1,962 Total 93,730 $ 96,066 $
Slide 45: Loss Share Performance
Loss Share Performance 47 (1) Net losses to date includes recoveries and excludes reimbursable expense. 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
Slide 46: Business Mix by Market
48 Business Mix by Market – June 30, 2012 Loans** Deposits Inland SC 51% Coastal SC 24% Charlotte MSA 22% Georgia 3% Inland SC 44% Coastal SC 15% Charlotte MSA 15% Georgia 26% See endnotes (16)
Slide 47: Deposit Mix
Deposit Mix 49 March 31, 2008 June 30, 2012 Total Deposits $2.02 billion Total Deposits $3.7 billion
Slide 48: Investment Portfolio Mix
Investment Portfolio Mix 50 Investment Portfolio (AFS & HTM) As of 6/30/12 Tax Equivalent Yield 3.35% Weighted Average Life 4.52 years Modified Duration 4.02 Total Carrying Value* $ 494,676 See endnotes (18) State and Municipal - HTM 4% State and Municipal - AFS 28% U.S. Agency/GSE Debentures 13% Mo
Slide 49: Fee Income By Type
Fee Income By Type 51 28% of Operating Income $ 944 million in Assets Under Management Focused on growing Wealth Management Bank Card Services Secondary Mortgage 2Q12 YTD: $28.8 Million See endnotes (19)
Slide 50: Continued CD Repricing Opportunities
Continued CD Repricing Opportunities 52 Average CD Price in past 30 days ~ 18 BPS Upcoming Maturities (in millions) Amount Yield 3rd Quarter 2012 200.8 $ 0.59% 4th Quarter 2012 234.7 $ 0.46% 1st Quarter 2013 147.6 $ 0.57%
Slide 51: Market Demographics
Market Demographics 53 See endnotes (20) Franchise South Carolina 1.16% 6.14% 42,413 $ 13.85% North Carolina 1.93% 9.11% 57,716 11.84% Georgia 0.78% 4.97% 41,418 15.49% National 1.15% 5.73% 43,126 $ 18.74% Population Growth Rate Household 2010-2011 2011-2016 Median Income 2011 Projected Change 2011-
Slide 52: South Carolina Deposit Market Share
South Carolina Deposit Market Share 54 106 FDIC Insured Institutions, $67.9 Billion Total Deposits Rank Institution (in Millions) Deposit Share 1 Wells Fargo & Co $12,010 17.7% 2 Bank of America 9,043 13.3% 3 BB&T 6,662 9.8% 4 First Citizens Bancorp 6,079 8.9% 5 TD Bank 3,313 4.9% 6 SCBT Financial C
Slide 53: Northeast Georgia Deposit Market Share
Northeast Georgia Deposit Market Share 55 33 FDIC Insured Institutions, $7.0 Billion Total Deposits Rank Institution (in Millions) Deposit Share 1 United Community $909 13.0% 2 SCBT Financial Corp. 895 12.8% 3 Regions 809 11.6% 4 Wells Fargo Bank 465 6.7% 5 BB&T 370 5.3% 6 SunTrust Bank 360 5.2% 7 B
Slide 54: Unemployment Data
14.0 12.0 — 10.0 6.0 4.0 2.0 Jun-02 56 Unemployment Data Jun-05 Jun-06 Jun-O7 Jun-08 Jun-09 Jun-10 Jun-1d_ Jun-12 —North Carolina = —South Carolina =—Georgia FINANCIAL CORPORATION"
Slide 55: S.C. Real Estate Markets
S.C. Real Estate Markets 57 See endnotes (21) Beaufort 434 414 -4.6% 179 175 -2.2% 194 214 10.3% Charleston Trident 3,616 3,894 7.7% 175 183 4.6% 112 115 2.7% Coastal Carolinas 3,137 3,283 4.7% 138 136 -1.4% 178 178 0.0% Gr. Columbia 2,426 2,868 18.2% 139 139 0.0% 121 121 0.0% Gr. Greenville 2,569 2
Slide 56: Analyst Recommendations
Analyst Recommendations 58 ANALYST Second Quarter 2012 RECOMMENDATION FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM BB&T Capital Markets HOLD Raymond James MARKET PERFORM Sandler O’Neill + Partners HOLD SunTrust Robinson Humphrey BUY Sterne Agee & Leach Inc. BUY Wunderlich Securities BU
Slide 57: 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 59 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.scbtonline.com
Slide 58: Endnotes
Endnotes Source: SNL Financial . Pricing data as of 9/06/12. 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 Carolina and
SCBT Financial — Merger or Acquisition (September 2012) on 6ix