Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — KBW 9th Annual Community Bank Investor Conference 2008
31 slides from Southstate Bank's conference presentation, Jul 30, 2008
Slide 1: KBW 9th Annual Community Bank Investor Conference
SCBT Financial Corporation KEEFE, BRUYETTE & WOODS 9th Annual Community Bank Investor Conference July 29 – 30, 2008
Slide 2: Forward-Looking Statements
2 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 matters herein. Such forward-
Slide 3: SCBT Financial Corporation
3 SCBT Financial Corporation Third largest independent commercial bank headquartered in Third largest independent commercial bank headquartered in South Carolina South Carolina Serving the banking needs of customers within the Carolinas Serving the banking needs of customers within the Carolinas for
Slide 4: Experienced Management Team
4 Experienced Management Team Years of Name Experience Current Position Robert R. Hill, Jr. 12/18 CEO John C. Pollok 12/18 COO & CFO Joe E. Burns 7/30 CCO Richard C. Mathis 8/25 CRO John F. Windley 5/31 President - SCBT Thomas S. Camp 9/32 President - SCBT of the Piedmont John B. Stedman, Jr. 1/25 P
Slide 5: At A Glance
5 Closing Price as of 7-24-2008 $33.51 Book Value (6-30-2008) $21.70 Tangible Book Value (6-30-2008) $15.19 2Q’08 Y-O-Y Net Income Growth 10.4% 6/30/08 YTD Net Income Growth 12.3% Price / Earnings (TTM) 14.4x Market Capitalization at 7-24-2008 ~$342MM (10,211,549 outstanding shares at 7/24/2008) Lis
Slide 6: 2nd Qtr 2008 Accomplishments
6 2nd QTR 2008 ACCOMPLISHMENTS Net income of $6.149 million – Up 10.4% YOY Asset quality remained strong 1. Net charge-offs – 0.17% 2. NPAs to total loans and OREO – 0.39% Strong loan growth – 18.9% annualized or $101.3m Efficiency ratio improved to 62.27%
Slide 7: Branch Footprint
7 BRANCH FOOTPRINT Augusta Charlotte Wilmington Savannah Piedmont-TSB Upstate Midlands Grand Strand Lowcountry-Orangeburg Charleston Beaufort SCBT Regions
Slide 8: Demographics
8 Demographics Assets 2007 - 2012 Rank Company Ticker State ($ Billions) Pop. Growth 1 United Community Banks, Inc. UCBI GA $8.21 13.09 % 2 Pinnacle Financial Partners, Inc. PNFP TN 3.79 12.79 3 Security Bank Corporation SBKC GA 2.83 9.63 4 Green Bankshares, Inc. GRNB TN 2.95 9.05 5 SCBT Financial C
Slide 9: South Carolina Deposit Market Share
9 Deposits Market Rank Institution ($000) Share Branches 1 Wachovia (NC) $11,617,048 18.13 % 152 2 Bank of America (NC) 7,169,929 11.19 122 3 BB&T (NC) 7,011,559 10.94 122 4 South Financial Group (SC) 5,370,231 8.38 79 5 First Citizens Bancorp (SC) 4,768,136 7.44 163 6 Synovus Financial (GA) 3,818,2
Slide 10: Charlotte MSA Deposit Market Share
10 Charlotte MSA Deposit Market Share SCBT Financial Corporation Deposits Market Rank Institution ($000) Share Branches 1 Wachovia (NC) $59,971,020 61.58 % 84 2 Bank of America (NC) 24,959,235 25.43 56 3 BB&T (NC) 3,332,095 3.40 53 4 First Charter Bank (NC) 2,375,450 2.42 33 5 SunTrust Bank (GA) 1,2
Slide 11: How we measure success
11 How we measure success ? Soundness Profitability Growth
Slide 12: Sound Balance Sheet
12 SOUND BALANCE SHEET 2006 2007 1Q ’08 2Q’08 Non-Performing Assets / Total Assets* 0.24% 0.27% 0.28% 0.31% Non-Performing Assets / Total Loans & OREO* 0.30% 0.33% 0.36% 0.39% Allow. Loan Losses / Total Loans* 1.29% 1.28% 1.27% 1.28% Allow. Loan Losses / Non-Performing Loans* 492% 419% 396% 389% Net
Slide 13: Net Charge-offs / Average Total Loans
13 Net Charge-offs / Average Total Loans SCBT Financial Corporation 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 2004 2005 2006 2Q '07 3Q '07 4Q '07 1Q '08 2Q '08 SCBTFC Peers 0.16% 0.11% 0.09% 0.16% 0.15% 0.09% Source: BHC Performance Report (2nd qtr not yet available) 0.16% 0.20% 0.23% 0.
Slide 14: Consistent Profitability
14 $7,940 $10,533 $12,257 $13,834 $14,786 $14,016 $16,655 $19,805 $21,565 $2.32 $2.15 $1.93 $1.64 $1.73 $1.62 $1.44 $1.23 $0.93 $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 $24,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 $1.80 $2.10 $2.40 (in Thous
Slide 15: Net Interest Margin (TE)
15 3.50% 3.60% 3.70% 3.80% 3.90% 4.00% 4.10% 4.20% 4.30% 2005 2006 2Q '07 3Q '07 4Q '07 1Q '08 2Q '08 SCBTFC Peers Net Interest Margin (TE) Source: BHC Performance Report (2nd qtr not yet available) Peers are BHC with assets between $1 billion & $3 billion 3.85% 3.89% 3.91% 3.79% 3.81% 3.91% 4.04%
Slide 16: Fee Income By Type
16 Fee Income By Type SCBT Financial Corporation 2006 2007 1Q’08 2Q’08 Deposit Service Fees $13,377 $15,114 $3,805 $4,032 Mortgage Banking Income 3,464 3,595 1,030 1,240 Wealth Management 2,148 2,566 696 681 Bankcard Services Income 3,422 4,136 1,156 1,276 Other * 1,390 1,950 818 898 Total Non-inter
Slide 17: Year Over Year EPS Growth Comparisons
17 YEAR OVER YEAR EPS GROWTH COMPARISONS -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 Super Regional Banks Regional Banks Small Cap Banks SCBT Financial Corporation Thrifts Source: FTN Midwest Securities Corp. (2Q not yet available)
Slide 18: Quality Growth – Total Assets
18 QUALITY GROWTH – TOTAL ASSETS $970 $1,025 $1,145 $1,198 $1,439 $1,926 $2,178 $2,597 $2,774 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 (in Millions) 2000 2001 2002 2003 2004 2005 2006 2007 2Q'08 15.1% 7 yr CAGR (2000-2007)
Slide 19: Loan Portfolio at June 30, 2008
19 LOAN PORTFOLIO at June 30, 2008
Slide 20: Loan Portfolio at June 30, 2008
LOAN PORTFOLIO 20 at June 30, 2008
Slide 21: Growth - Total Deposits
21 GROWTH - Total Deposits $758 $812 $898 $946 $1,174 $1,473 $1,707 $1,928 $2,057 $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 (in Millions) 2000 2001 2002 2003 2004 2005 2006 2007 2Q'08 14.3% 7 YR CAGR (2000 – 2007)
Slide 22: Growth – Core Deposits
22 GROWTH – Core Deposits $638 $692 $749 $812 $1,012 $1,204 $1,335 $1,501 $1,557 $0 $300 $600 $900 $1,200 $1,500 $1,800 (in Millions) 2000 2001 2002 2003 2004 2005 2006 2007 2Q'08 13.0% 7 YR CAGR (2000 – 2007)
Slide 23: Deposit Mix
i | DEPOSIT MIX «une 20, 2008 CDs< $100,000 24% CDs> $100,000 25% ~~ Savings Brokered T% Deposits 1% ERVICE All day. Every day. a 23 Od
Slide 24: Deposits by Major Market
| DEPOSITS BY MAJOR MARKET tune 20, 2008 <Gfaacuun Piedmont = eras) = 1s8 19% Upstate 10% Midlands 11% 1% Charleston Grand oe 3% All day. Every day.
Slide 25: Operating Efficiency
25 OPERATING EFFICIENCY 41 45 50 50 50 65.33% 64.01% 65.66% 62.95% 62.27% 30 35 40 45 50 55 60 2005 2006 2007 1Q '08 2Q'08 30.00% 40.00% 50.00% 60.00% 70.00% Number of Branches Efficiency Ratio
Slide 26: Analyst Recommendations
26 Analyst Recommendations Analyst July 2008 Recommendation Keefe, Bruyette & Woods MARKET PERFORM SunTrust Robinson Humphrey BUY FTN Midwest Securities Corp. NEUTRAL FIG Partners OUTPERFORM Sandler O’Neill + Partners HOLD
Slide 27: Investor Contacts
27 INVESTOR CONTACTS Robert R. Hill, Jr. Chief Executive Officer Richard C. Mathis Executive Vice President and Chief Risk Officer John C. Pollok Senior Executive Vice President and Chief Operating Officer and Chief Financial Officer 520 Gervais Street Columbia, South Carolina 29201 803-771-2265 www
Slide 28: Supplemental Information
SCBT Financial Corporation KBW 9th Annual Community Bank Investor Conference July 29 -30, 2008 SUPPLEMENTAL INFORMATION
Slide 29: Total Risk Based Capital
2 10.00% 10.25% 10.50% 10.75% 11.00% 11.25% 11.50% 11.75% 12.00% 12.25% 12.50% 12.75% 13.00% 2005 2006 2Q '07 3Q '07 4Q '07 1Q '08 2Q '08 SCBTFC Peers Total Risk Based Capital Source: BHC Performance Report (2nd qtr not yet available) Peers are BHC with assets between $1 billion & $3 billion 11.31%
Slide 30: Loan Portfolio
3 LOAN PORTFOLIO % of % of $$$ 2Q'08 Portfolio 2Q'07 Portfolio Change Commercial non-owner occupied 305,307 $ 13.6% 222,033 $ 12.3% 83,274 $ Construction/Land Development: Land / Lot Loans 1-4 Family 124,150 5.5% 148,897 8.2% (24,747) Land Development 84,509 3.8% 45,889 2.5% 38,620 Land / Lot Loans
Slide 31: Deposit Mix
4 DEPOSIT MIX % of % of $$$ % of $$$ 2Q'08 Portfolio 1Q'08 Portfolio Change 2Q'07 Portfolio Change Demand deposits 322,209 $ 15.7% 315,621 $ 15.7% 6,588 $ 285,155 $ 16.0% 37,054 $ Interest bearing: Money market 266,795 13.0% 270,054 13.4% (3,259) 278,535 15.6% (11,740) NOW accounts 300,715 14.6% 320
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