Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — KBW 2006 Community Bank Investor Conference
34 slides from Southstate Bank's conference presentation, Aug 2, 2006
Slide 1: SCBT Financial Corporation – KBW 2006 Community Bank Investor Conference
SCBT Financial SCBT Financial Corporation Corporation KBW 2006 Community Bank Investor Conference August 2, 2006
Slide 2: Forward-Looking Statements
Forward Forward-Looking Statements: Looking Statements: Statements contained in this presentation, which are not histori Statements contained in this presentation, which are not historical cal facts, are forward facts, are forward-looking statements. In addition, SCBT looking statements. In addition
Slide 3: SCBT Financial Corporation Profile
SCBT Financial Corporation ProfileSCBT Financial Corporation Profile⑀⍼⑀⍼Lead bank founded in Lead bank founded in 19341934⑀⍼⑀⍼7272ndndAnniversary in 2006Anniversary in 2006⑀⍼⑀⍼Bank subsidiariesBank subsidiaries--SCBT, N.A.SCBT, N.A.--SCBT of the SCBT of the Piedmont, N.A.Piedmont, N.A.⑀⍼⑀⍼45 financi
Slide 4: SCBT Financial Corporation Profile
SCBT Financial Corporation Profile SCBT Financial Corporation Profile ⑀⍼⑀⍼Third largest independent commercial bank Third largest independent commercial bank headquartered in South Carolinaheadquartered in South Carolina⑀⍼⑀⍼Eighth largest depository in South CarolinaEighth largest depository in Sout
Slide 5: SCBT Financial Corporation At A Glance
SCBT Financial Corporation SCBT Financial Corporation At A Glance At A Glance Closing Price as of 7 Closing Price as of 7-20 20-2006 2006 $35.11 $35.11 6-30 30-06 Earnings per share 06 Earnings per share $ 1.12 $ 1.12 Book Value (6 Book Value (6-30 30-2006) 2006) $17.79 $17.79 Price / Earnings (TTM
Slide 6: Core Deposit Premium
Core Deposit Premium ⑀⍽⑀⍽SCBT Financial Corporation’s Core Deposit Premium as of 7-14-06 was 10.6%. ⑀⍽⑀⍽ Core Deposit Premiums of Southeastern banks less than or equal to $5 billion in assets, covered by than or equal to $5 billion in assets, covered by Keefe, Bruyette & Woods:⑀⍽⑀⍽Mean --13.1%⑀⍽⑀⍽Me
Slide 7: What Makes Us Successful?
What Makes Us Successful?⑀⍼⑀⍼Customers⑀⍼⑀⍼Employees⑀⍼⑀⍼Community Involvement⑀⍼⑀⍼Management/Board⑀⍼⑀⍼Business Model
Slide 8: Customer Oriented
Customer Oriented ⑀⍼⑀⍼Relationship Banking⑀⍼⑀⍼10% growth in core deposits 10% YTD. ⑀⍼⑀⍼20% growth in new personal 20% growth in new personal checking accounts from 1st half of 2005⑀⍼⑀⍼ 26% growth in new business deposit accounts from1st half of half of 2005
Slide 9: Business Model
Business Model ⑀⍼⑀⍼Community Banking⑀⍼⑀⍼Local Decisions⑀⍼⑀⍼Centralized Processes⑀⍼⑀⍼Experienced Relationship Managers & Employees⑀⍼⑀⍼Building “South Carolina’s Bank”
Slide 10: 2006 Focus Areas
2006 Focus Areas ⑀⍼⑀⍼Core deposits⑀⍼⑀⍼Loan yields⑀⍼⑀⍼Fee revenue⑀⍼⑀⍼Efficiency⑀⍼⑀⍼Training⑀⍼⑀⍼Tellers, FSR’s & Managers⑀⍼⑀⍼Improving financial performance of newer markets and branches
Slide 11: 2006 YTD Growth Initiatives
2006 YTD Growth Initiatives ⑀⍼⑀⍼Completed consolidation of SunBank into South Carolina Bank and Trust⑀⍼⑀⍼Efficiency Ratio declined 3% in 2 nd quarter on linked-quarter comparison ⑀⍼⑀⍼Opened new branches in Lexington, Columbia, Charleston, Daniel Island, Columbia, Charleston, Daniel Island, and Fort
Slide 12: South Carolina at a glance
South Carolina at a glance ⑀⍼Coast:-2ndmost popular tourist destination in the USA⑀⍼Charleston:-Largest container port on Southeast and Gulf coasts-Nearly $3 billion in economic impact annually⑀⍼Hilton Head:-Ranks 7thin the southeast in terms of projected population growth; ranks9thin in terms of me
Slide 13: Selected S.C. County Statistics
Selected S.C. County Statistics SCBT Financial Center LocationsSource: SNL Financial; Sandler, O’Neill and Partners, L.P.Greenville CountyMedian Household Income: $48,599Deposits: $7,564,326,000Richland CountyMedian Household Income: $46,799Deposits: $7,086,682,000Horry CountyMedian Household Income
Slide 14: Projected Average Household Income Growth 2005-2010
Projected Average Household Income Growth2005--2010Less than 10% 10% -15%15% -20%Greater than 20%SCBT SCBT Financial Center LocationsFinancial Center LocationsSource: Claritas; Scott & Stringfellow, Inc.State Average: 20.9%
Slide 15: Projected Population Growth 2005-2010
Projected Population Growth2005--2010Less than 0%0% -5%5% -10%Greater than 10%SCBT SCBT Financial Center LocationsFinancial Center LocationsSource: Claritas; Scott & Stringfellow, Inc.State Average: 6.1%
Slide 16: Business Model - Balancing Soundness, Profitability & Growth
Business Model Business Model - Balancing: Balancing: Soundness Soundness Profitability Profitability & Growth
Slide 17: Soundness: Net Charge-offs / Average Total Loans
SOUNDNESS SOUNDNESS Net Charge Net Charge-offs / Average Total Loans 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 200120022003200420051Q 20062Q 2006SCBTFCPeers 0.18% 0.09% 0.07% Source: BHC Performance Report
Slide 18: Soundness: Non-Performing Assets and Loan Loss Allowance
SOUNDNESS 2003 2003 2004 2004 2005 2005 2Q 2006 2Q 2006 Non Non-Performing Assets / Performing Assets / Total Loans & OREO* Total Loans & OREO* 0.87% 0.43% 0.30% 0.87% 0.43% 0.30% 0.27% 0.27% Allow. Loan Losses / Total Loans* 1.25% 1.25% 1.30% Allow. Loan Losses / Total Loans* 1.25% 1.25% 1.30% 1.29
Slide 19: Profitability: Earnings Per Share and Net Income
PROFITABILITY PROFITABILITY Earnings Per Share and Net IncomeEarnings Per Share and Net Income$12,257$13,834$14,786$14,016$16,655$9,787$1.82$1.12$1.51$1.72$1.70$2.03$0$3,000$6,000$9,000$12,000$15,000$18,000200120022003200420052Q 2006$0.00$0.30$0.60$0.90$1.20$1.50$1.80$2.10(in Thousands)Net IncomeEPS
Slide 20: Profitability: Return on Average Assets
PROFITABILITY PROFITABILITY Return on Average Assets Return on Average Assets 1.21%1.28%1.23%1.05%1.00%0.99%0.00%0.20%0.40%0.60%0.80%1.00%1.20%1.40%2001200220032004
Slide 21: Profitability: Return on Average Equity
PROFITABILITY Return on Average Equity 13.64%14.09%13.72%12.20%13.19%15.20%13.01%17.07%0.00%4.00%8.00%12.00%16.00%20.00%20012002200320042005
Slide 22: Performance Drivers: Net Interest Margin
PERFORMANCE DRIVERS Net Interest Margin - SCBT / Peer SCBT / Peer 3.00%3.50%4.00%4.50%5.00%200120022003200420051Q 20062Q 2006SCBTFCPeers4.15% 4.02%Source: BHC Performance Report4.18%
Slide 23: Performance Drivers: Total Non-Interest Income
PERFORMANCE 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%}$13,680 {24%}$17,681 {27%} $22,651 {30%}$12,697{25%}$0$5,000$10,00
Slide 24: Growth - Total Assets
GROWTH - Total Assets $1,026$1,145$1,198$1,439$1,926$2,071$0$300$600$900$1,200$1,500$1,800$2,100$2,400(in Millions)200120022003200420052Q 200616.6% CAGR
Slide 25: Diversification: Loan Mix
DIVERSIFICATION: Loan Mix DIVERSIFICATION: Loan Mix June 200615.90%12.56%11.02%9.16%14.20%7.81%13.16%9.31%6.88%0.00%10.00%20.00%30.00%40.00%50.00%38.22%CommercialRE 42.95% OwnerOccupied RE 18.83% Non RealEstateCommercial RE LegendCommercial -Non Owner OccupiedConsumer Lot LoansConstruction / Land De
Slide 26: Growth - Total Deposits
GROWTH --Total Deposits $812$898$946$1,174$1,473$1,623$0$200$400$600$800$1,000$1,200$1,400$1,600$1,800(in Millions)200120022003200420052Q 200616.9% CAGR
Slide 27: Growth - Core Deposits
GROWTH--Core Deposits$691$749$812$1,012$1,204$1,324$0$200$400$600$800$1,000$1,200$1,400$1,600(in Millions)200120022003200420052Q 200615.9% CAGR
Slide 28: Diversification: Deposit Mix
DIVERSIFICATION Deposit Mix MMDA17%Demand Deposits (NIBL)17%Time Deposits42%Now Accounts19%Savings5% As of June 30, 2006
Slide 29: Ten-Year Asset Growth
Ten-Year Asset Growth Year Asset Growth (in thousands) $497,632$565,558$750,077$872,398$969,848$1,025,682$1,144,948$1,197,692$1,436,977$1,925,856$2,070,927$0$250,000$500,000$750,000$1,000,000$1,250,000$1,500,000$1,750,000$2,000,000$2,250,00019961997199819992000200120022003200420052Q2006
Slide 30: Ten-Year Net Income Growth
Ten--Year Net Income GrowthYear Net Income Growth(in thousands) $5,528$6,446$8,271$7,640$10,533$12,257$13,834$14,786$14,016$16,655$9,787$0$2,000$4,000$6,000$8,000$10,000$12,000$14,000$16,000$18,00019961997199819992000200120022003200420052Q2006
Slide 31: Market Capitalization Over Ten Years
Market CapitalizationOver Ten Years $68,424,692$98,806,244$159,143,511$132,396,639$80,105,617$120,586,067$169,358,265$217,693,785$260,122,042$284,589,548$309,647,843$0$50,000,000$100,000,000$150,000,000$200,000,000$250,000,000$300,000,000$350,000,00019961997199819992000200120022003200420052Q2006
Slide 32: Cash Dividends Per Share
SCBT FINANCIAL CORPORATIONCash Dividends Per Share$0.50$0.54$0.63$0.65$0.68$0.34$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90200120022003200420052Q 20066.3% CAGRPer share data reflect a ten percent stock dividend distributed on December 6, 2002and a five percent stock dividend distributed on Ja
Slide 33: Price Performance
Price Performance Source: Yahoo! Finance and Keefe, Bruyette & WoodsPrice data is adjusted for Stock Splits and DividendsAs of June 30, 2006Peers include 4 publicly traded banks headquartered in the Carolinas with assets between $1 billion and $5 billion.Five-Year Price PerformanceSCBT261.2%Peer Ave
Slide 34: Investor Contacts
SCBT Financial Corporation Investor Contacts: Richard C. Mathis Richard C. Mathis Executive Vice President and Chief Financial Officer Robert R. Hill, Jr. Chief Executive Officer SCBT Financial Corporation 520 Gervais Street 520 Gervais Street Columbia, South Carolina 29201 Columbia, South Carolina
SCBT Financial — KBW 2006 Community Bank Investor Conference on 6ix