Southstate Bank Corporation · NYSE:SSB

Southstate Bank — SCBT Financial — Keefe, Bruyette & Woods 8th Annual Community Bank Investor Conference 2007

35 slides from Southstate Bank's conference presentation, Aug 1, 2007

  1. Slide 1: Keefe, Bruyette & Woods 8th Annual Community Bank Investor Conference

    Keefe, Bruyette & Woods 8th Annual Community Bank Investor Conference July 31-August 1, 2007 SCBT FINANCIAL CORPORATION®

  2. Slide 2: Forward-Looking Statements

    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 mat

  3. Slide 3: Executive Management Team

    Executive Management Team Years of Current Name Experience Position Robert R. Hill, Jr. 12/18 CEO John C. Pollok 12/18 COO & CFO Joe E. Burns 7/30 CCO Richard C. Mathis 7/23 CRO John F. Windley 5/31 President SCBT Thomas S. Camp 9/32 President SCBT Piedmont

  4. Slide 4: SCBT Financial Corporation Profile

    $2.27 billion bank founded in 1934 45 financial centers 16 S.C. Counties Opened 15 new offices in the last 5 years SCBT Financial Corporation Profile

  5. Slide 5: SCBT Financial Corporation Profile

    SCBT Financial Corporation Profile Third largest independent commercial bank headquartered in South Carolina Eighth largest commercial bank in South Carolina1 Operates in 5 of the top 50 income and population growth MSA’s in the southeastern United States.2 Mission: To be South Carolina’s premier co

  6. Slide 6: At A Glance

    At A Glance Body: Closing Price as of 6-30-2007 $36.40 6-30-07 Earnings per share $ 0.60 Book Value (6-30-2007) $18.47 Price / Earnings (TTM) 14.9x Market Capitalization at 6-30-2007 $334MM Listed on the NASDAQ Global Select Market

  7. Slide 7: What Makes Us Successful?

    Title: What Makes Us Successful? Customers Employees Community Involvement Management/Board Business Model

  8. Slide 8: Business Model

    Business Model Community Banking Local Decisions Centralized Processes Experienced Relationship Managers & Employees “South Carolina’s Bank”

  9. Slide 9: 2006 Accomplishments

    2006 Accomplishments Consolidated SunBank into South Carolina Bank and Trust Opened 4 new branches Net Income grew $3 million, up 19% from 2005. Earnings Per Share increased 11%. Credit Quality remained strong. Organic Loan Growth up 15% from year end 2005 Organic Deposit Growth up 16% from year end

  10. Slide 10: YTD 2007 Accomplishments

    YTD 2007 Accomplishments Net Income of $10.8 million – Up 10.2% YOY. Diluted EPS of $1.17 – Up 10.1% YOY. Total Assets of $2.27 billion – Up 9.9% YOY. Paid 5% common stock dividend. Opened full-service branch in Myrtle Beach market. Opened full-service branch in Charleston market. Opening a full-ser

  11. Slide 11: Deposit Market Share

    Deposit Market Share Deposits Market Rank Institution ($000) Share Branches 1 Wachovia (NC) $8,461,441 20.77 % 107 2 Bank of America (NC) 5,677,114 13.94 86 3 BB&T (NC) 5,490,144 13.48 90 4 South Financial Group (SC) 4,025,731 9.88 57 5 Synovus Financial (GA) 2,670,902 6.56 35 6 First Citizens Banco

  12. Slide 12: Selected MSA Statistics

    Selected MSA Statistics SCBT Financial Center Locations Sources: SunTrust Robinson Humphrey, Inc.; Keefe, Bruyette & Woods; Federal Deposit Insurance Corporation Charlotte, NC Savannah, GA Augusta, GA Wilmington, NC

  13. Slide 13: Demographics – Population & Income

    Demographics – Population & Income Projected Change in Population 2006-2011 (%) Projected Median Household Income 2011 ($) Source: SNL Financial & Keefe Bruyette Wood Population and median household income are deposit weighted SCBT Southeast United States 9.49 6.7 SCBT Southeast United States $52,24

  14. Slide 14: Projected Average Household Income Growth 2006-2011

    Projected Average Household Income Growth 2006-2011 Less than 10% 10% - 15% 15% - 20% SCBT Financial Center Locations Source: Keefe, Bruyette & Woods National Average: 17.4%

  15. Slide 15: Projected Population Growth 2006-2011

    Projected Population Growth 2006-2011 Less than 0% 0% - 5% 5% - 10% Greater than 10% SCBT Financial Center Locations Source: Keefe, Bruyette & Woods National Average: 6.7%

  16. Slide 16: Soundness: Net Charge-offs / Average Total Loans

    SOUNDNESS Net Charge-offs / Average Total Loans Source: BHC Performance Report 0.16% 0.11% 0.09% 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 SCBTFC 0.25% 0.18% 0.15% 0.11% 0.16% 0.11% 0.09% SCBTFC (inc. NSF & AOP) 0.30% 0.25% 0.20% 0.16% 0.16% Peers 0.29% 0.25% 0.19% 0.15% 0.13%

  17. Slide 17: Soundness: Non-Performing Assets and Loan Losses

    SOUNDNESS 2005 2006 1Q 2007 2Q 2007 Non-Performing Assets / Total Loans & OREO* 0.30% 0.30% 0.25% 0.28% Allow. Loan Losses / Total Loans* 1.30% 1.29% 1.29% 1.29% Allow. Loan Losses / Non-Performing Loans*469% 492% 581% 542% Net Charge-offs / Average Loans 0.11% 0.16% 0.11% 0.09% * Period end date Lo

  18. Slide 18: Earnings Per Share and Net Income

    Earnings Per Share and Net Income 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. 2002 2003 2004 2005 2006 Jun-07 Net Income $13,834 $14,

  19. Slide 19: Fee Income By Type

    Fee Income By Type Body 2004 2005 2006 6/30/07 Deposit Service Fees $11,854 $12,473 $13,377 $7,043 Secondary Mtg. Orig Fees 3,892 5,054 5,613 3,385 Wealth Management 1,422 1,695 2,148 1,274 Bankcard Services Income 1,690 2,647 3,422 2,016 Other * 2,026 1,986 2,149 1,364 Total Non-interest Income $20

  20. Slide 20: Year-Over-Year EPS Growth

    Year-Over-Year EPS Growth Source: FTN Midwest Securities Corp. 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 Super Regional Banks 5% 7% 12% 6% -2% Regional Banks 8% 3% 3% -4% -3% Small Cap Banks 12% 6% 3% 3% -3% SCBT Financial Corporation 11% 14% 12% 12% 8% 11% Thrifts 0% -16% -4% -8% -15%

  21. Slide 21: Profitability: Return on Average Equity

    PROFITABILITY Return on Average Equity 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 Return on Avg. Equity 14.09% 13.72% 12.20% 13.19% 12.72% 12.87% 13.27% Return on Tangible Equity 15.20% 16.54% 16.45% 16.82%

  22. Slide 22: Performance Drivers: Net Interest Margin

    PERFORMANCE DRIVERS Net Interest Margin – SCBT / Peer Source: BHC Performance Report 4.12% 3.94% 3.99% 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 SCBTFC 4.86% 4.56% 4.37% 4.29% 4.12% 3.94% 3.99% Peers 4.28% 4.05% 3.99% 4.07% 3.99%

  23. Slide 23: Checking Account Growth

    Checking Account Growth 15% CAGR 13.3 16.4 17.6 2004 2005 2006 Jun-07 Consumer 10.8 13.5 14.2 8.2 Business 2.5 2.9 3.4 1.9

  24. Slide 24: Growth - Total Assets

    GROWTH - Total Assets 16.3% CAGR 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 Total Assets $1,145 $1,198 $1,439 $1,926 $2,178 $2,243 $2,275

  25. Slide 25: Diversification: Loan Mix

    DIVERSIFICATION Loan Mix As of June 30, 2007 Commercial RE Owner Occupied RE Commercial & Industrial Consumer Installment Consumer Real Estate 38.43% 40.88% 13.36% 7.31%

  26. Slide 26: Commercial Real Estate

    Commercial Real Estate As of June 30, 2007 Commercial - Non Owner Occupied Consumer Lot Loans Construction/Development Other Consumer Real Estate 12.29% 8.25% 17.90% 61.57% Commercial RE Owner Occupied RE Commercial & Industrial Consumer Installment Consumer Real Estate 38.44% 40.89% 13.36% 7.31%

  27. Slide 27: Owner Occupied Real Estate

    Owner Occupied Real Estate As of June 30, 2007 Commercial RE Owner Occupied RE Commercial & Industrial Consumer Installment Consumer Real Estate 38.44% 40.89% 13.36% 7.31% Consumer - Owner Occupied 2nd Lien Other Consumer - Owner Occupied 1st Lien Commercial - Owner Occupied Clear Consumer Real Esta

  28. Slide 28: Growth - Total Deposits

    GROWTH - Total Deposits 14.2% CAGR 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 Total Deposits $898 $946 $1,174 $1,473 $1,707 $1,716 $1,783

  29. Slide 29: Growth – Core Deposits

    GROWTH – Core Deposits 13.2% CAGR 2002 2003 2004 2005 2006 1Q 2007 2Q 2007 Core Deposits $749 $812 $1,012 $1,204 $1,335 $1,350 $1,414

  30. Slide 30: Operating Efficiency

    OPERATING EFFICIENCY 2004 2005 2006 Number of Branches 34 41 45 Efficiency Ratio 66.49% 66.30% 65.22%

  31. Slide 31: Ten-Year Asset Growth

    Ten-Year Asset Growth (in thousands) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total Assets $565,558 $750,077 $872,398 $969,848 $1,025,682 $1,144,948 $1,197,692 $1,436,977 $1,925,856 $2,178,413

  32. Slide 32: Ten-Year Net Income Growth

    Ten-Year Net Income Growth (in thousands) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Net Income $6,446 $8,271 $7,640 $10,533 $12,257 $13,834 $14,786 $14,016 $16,655 $19,805

  33. Slide 33: Market Capitalization Over Ten Years

    Market Capitalization Over Ten Years 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Market Capitalization Value $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 $363,849,963

  34. Slide 34: Price Performance & Analyst Recommendations

    Price Performance & Analyst Recommendations As of June 30, 2007 Source: Yahoo! Finance and Keefe, Bruyette & Woods Price data is adjusted for Stock Splits and Dividends Peers include 4 publicly traded banks headquartered in the Carolinas with assets between $1 billion and $5 billion. Analyst July 20

  35. Slide 35: Investor Contacts

    Title: INVESTOR CONTACTS Body: Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Operating and Financial Officer Richard C. Mathis Executive Vice President and Chief Risk Officer SCBT Financial Corporation 520 Gervais Street Columbia, South Carolina

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