Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — Merger or Acquisition (November 2012)
60 slides from Southstate Bank's merger presentation, Nov 15, 2012
Slide 1: Forward-Looking Statements
Forward-Looking Statements 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 Corporat
Slide 2: SCBT Financial Corporation: Largest Publicly Traded Holding Company Headquartered in SC
Atlanta Athens SOUTH CAROLINA Charleston Spartanburg Greenville NORTH CAROLINA Charlotte Savannah GEORGIA North Carolina 3 branches South Carolina 53 branches Georgia 19 branches SCBT Financial Corporation: Largest Publicly Traded Holding Company Headquartered in SC Serving the banking needs of cust
Slide 3: How We Operate the Company
How We Operate the Company Soundness LEADERSHIP FINANCIAL CORPORATION"
Slide 4: Experienced Executive Management Team
Experienced Executive Management Team 5 Executive Position Years in Banking Years with SCBT Robert R. Hill, Jr. CEO 24 17 John C. Pollok Sr. EVP, CFO/COO 26 17 Joe E. Burns Sr. EVP, CRO 35 12 John F. Windley President, CBO 36 11 Renee R. Brooks EVP, CAO 20 16
Slide 5: Market Performance
Market Performance 6 See endnotes (1) Price Performance since 12/31/07 39.3% 25.3% (27.8%) (66.6%) (71.1%)
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: Habersham Bank Market Opportunities
Habersham Bank Market Opportunities
Slide 8: Southeast Banking Landscape
Southeast Banking Landscape Distribution of Banks Distribution of Assets ($bn) Southeast Bank Universe (1) 1,553 Banks across the Southeast 116 84 134 145 218 193 70 81 99 61 176 176 9 See endnotes (24) 1,252 170 109 22 Asset Range < $500 million $500 mm - $1.0 bn $1.0 bn - $5.0 bn > $5.0 bn $222 $1
Slide 9: SCBT States of Operation – GA, NC, and SC
SCBT States of Operation – GA, NC, and SC Distribution of Banks Distribution of Assets ($bn) SCBT States of Operation – GA, NC, SC (1) 369 Banks across GA, NC, and SC 218 70 81 10 See endnotes (25) 301 33 28 7 Asset Range < $500 million $500 mm - $1.0 bn $1.0 bn - $5.0 bn > $5.0 bn
Slide 10: 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 11 External Internal Earnings
Slide 11: Demographic Highlights in Key Markets
Demographic Highlights in Key Markets 12 See endnotes (20)
Slide 12: Median Household Income
$84,000-$120,000 $70,001-84,000 $41,000-$70,000 (Median) $27,001-$41,000 $8,889-$27,000 13 Median Household Income See endnotes (20) SCBT & SAVB Branches
Slide 13: Projected Population Growth (2011-2016)
14 Projected Population Growth (2011-2016) See endnotes (20) SCBT Branches SAVB Branches 1.5% to 6.6 % 1.0 % to 1.4% 0.1 to 0.9 % (mean 0.2%) -0.2% to 0% -0.7% to -0.3 % -2.5% to -0.8%
Slide 14: Deposit Market Share by MSA
15 Charlotte 1 Bank of America 80.1 % 2 Wells Fargo 12.8 % 3 BB&T Corp 2.2 % 4 Fifth Third Bank 0.8 % 5 Sun Trust Banks Inc. 0.6 % 8 SCBT Financial Corp 0.2 % Total $ 201 Billion 100.0 % Columbia 1 Wells Fargo 27.5% 2 Bank of America 26.4% 3 BB&T Corp 12.9% 4 First Citizens 9.78 % 5 Synovus Financia
Slide 15: SCBT: Positioned for the Future
SCBT: Positioned for the Future 16 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 16: Savannah's Economic Drivers
Savannah’s Economic Drivers Nation’s 4th busiest and fastest growing port Port supports 55,000 jobs in surrounding counties Port provides 350,000 jobs statewide Georgia Ports Authority received final regulatory approval to deepen the port from 42 feet to 47 feet Major military bases- Fort Stewart an
Slide 17: 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 18: Soundness
SUUNDNESS
Slide 19: Credit Quality (Non-Acquired)
Credit Quality (Non-Acquired) 21 See endnotes (7) SCBT and Peer data as of June 30,2012
Slide 20: Capital
Capital 22 See endnotes (7) SCBT and Peer data as of June 30,2012
Slide 21: Profitability
PROFITABILITY
Slide 22: Profitability
Profitability 24 In Millions See endnotes (2)
Slide 23: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power In Millions
Slide 24: Net Interest Margin
5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 26 2008 2009 Net Interest Margin 2010 2011 MSCBTFC lm Peers 1a12 2Q12 3012 FINANGAL DEE Conroration:
Slide 25: Operating Efficiency Ratio - QTD
Operating Efficiency Ratio - QTD 27 See endnotes (9)
Slide 26: Dividends
Dividends 28 See endnotes (10)
Slide 27: [LOGO]
[LOGO]
Slide 28: Legacy Loan Portfolio Mix
Legacy Loan Portfolio Mix 30 10.6 % 5 YR CAGR (2007 – 2011) Organic Loan Growth In Millions See endnotes (28)
Slide 29: Organic Loan Growth / Decline
Organic Loan Growth / Decline 31 In Millions
Slide 30: Growth – Core & Total Deposits
Growth – Core & Total Deposits 32 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) $3,589
Slide 31: Savannah Bancorporation
Savannah Bancorporation
Slide 32: Pro Forma Highlights – Strategic Market Expansion
Kiawah Island Pro Forma Highlights Strategic Market Expansion 34 Ticker: SCBT (NASDAQ) Headquarters: Columbia, SC Founded: 1933 Branches: 87 Assets: $5.3 billion Loans: $3.8 billion Deposits: $4.5 billion Charleston Hilton Head Island Savannah SCBT branch SAVB branch
Slide 33: Savannah Bancorp, Inc. Deposit Market Share of Combined Counties Served
Savannah Bancorp, Inc. 35 Deposit Market Share of Combined Counties Served (27) The Savannah Bancorp, Inc. Headquarters Savannah, GA Bank Subsidiaries Savannah Bank Bryan Bank & Trust Investment Advisor Subsidiary Minis & Co., Inc. Founded 1990 Branches 11 Total Assets $ 952 million Total Loans 725
Slide 34: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 35: Index – Supplemental Information
Index – Supplemental Information Loan Portfolio Mix (New)38 Margin Analysis (New)39 Largest Relationships40 Vintage/New Loan Mix41 Construction / Land Development Loans43 ALLL Trend44 Credit Trends45 Non Performing Loans47 NPA’s & Classifieds by Market 48 Loss Share Performance49 Business Mix By Mar
Slide 36: Loan Portfolio Mix With SAVB
NonAcquired FDIC Acquired Whole Bank Acquired Loan Portfolio Mix With SAVB - FDIC Acquired includes Indemnification Asset 38
Slide 37: Impact Of Credit Releases
Impact Of Credit Releases (Dollars in Millions) 39 3Q2012 2Q2012 Change Interest Income Yield Interest Income Yield Interest Income Yield IMPACT ON ACQUIRED LOAN YIELD Acquired Loan Yield $ 16.0 12.70% $ 11.9 9.86% $ 4.1 2.84% Adjustment for negative accretion on IA (6.6) -6.95% (4.4) -5.21% (2.2) -
Slide 38: Largest Credit Relationships (Non-Acquired)
Largest Credit Relationships (Non-Acquired) 40 See endnotes (26) Loan commitment in Millions $20.0 $20.0 $15.0 $10.0 $5.0 $ 25 50 75 100 125 150 175 $6.7 $4.4 $3.2 $2.0 Total Relationship Commitment Total Relationship Balance Top 25 Top 50 Top 100 Top 200 Total Commitments $ 263.9 8.8% $ 400.2 13.3%
Slide 39: Vintage / New Loan Mix
Vintage / New Loan Mix – 3 Q 2012 (Non-Acquired Loans) 41 See endnotes (12,22)
Slide 40: Construction / Land Development Loan Mix
Construction / Land Development Loan Mix – 3 Q 2012 (Non-Acquired Loans) 42 See endnotes (12,23)
Slide 41: Construction / Land Development Loans (Non-Acquired Loans)
43 Construction / Land Development Loans (Non-Acquired Loans) * 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 $54.8 $117.1 $9.3 $19.9 $72.5 4Q07 3Q12
Slide 42: ALLL Trend Data (Non-Acquired Loans)
ALLL Trend Data (Non-Acquired Loans) 44 2.00 % 1.91 % See endnotes (13) 1.84 %
Slide 43: Credit Trends (Non-Acquired Loans)
45 See endnotes (14) Credit Trends (Non-Acquired Loans) (in millions) Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Total nonperforming assets 96.1 $ 94.9 $ 91.4 $ 83.1 $ 81.8 $ Texas Ratio (14) 27.13% 26.88% 25.41% 21.23% 20.43% Criticized Loans (14) 194.3 $ 170.3 $ 162.0 $ 151.0 $ 144.5 $ Classified Assets (
Slide 44: 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) 46 See endnotes (15)
Slide 45: Non-Performing Loans
Non-Performing Loans 47 As of September 30, 2012 See endnotes (16) SCBT and Peer data as of June 30,2012 Construction / Land Dev 30% Commercial Non Owner Occ 11% Consumer Owner Occ 19% Commercial Owner Occ 30% Commercial & Industrial 2% Other Income Producing Property 8% Consumer Non Real Estate 0%
Slide 46: NPAs & Classified Assets by Market (Non-Acquired)
NPAs & Classified Assets by Market (Non-Acquired) 48 NPA’s Classified Loans & OREO See endnotes (17) 3Q11 4Q11 1Q12 2Q12 3Q12 Inland 27,936 $ 29,522 $ 29,539 $ 28,685 $ 29,838 $ Coastal 52,117 49,279 44,759 39,788 37,985 Charlotte MSA 13,240 13,821 14,835 12,690 13,880 CBT 2,773 2,327 2,258 1,962 54
Slide 47: Loss Share Performance
Loss Share Performance 49 (1) Does not include expense, net of recoveries (only losses claimed) (2) 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 appr
Slide 48: Business Mix by Market
50 Business Mix by Market – September 30, 2012 Loans** Deposits Inland SC 47% Coastal SC 27% Charlotte MSA 23% Georgia 3% Inland SC 51% Coastal SC 13% Charlotte MSA 13% Georgia 23% See endnotes (16)
Slide 49: Deposit Mix
Deposit Mix 51 March 31, 2008 September 30, 2012 Total Deposits $2.02 billion Total Deposits $3.6 billion
Slide 50: Investment Portfolio Mix
Investment Portfolio Mix 52 Investment Portfolio (AFS & HTM) As of 6/30/12 Tax Equivalent Yield 3.35% Weighted Average Life 4.32 years Modified Duration 3.88 Total Carrying Value* $ 492,226 See endnotes (18) State and Municipal - HTM 3% State and Municipal - AFS 28% U.S. Agency/GSE Debentures 15% Mo
Slide 51: Fee Income By Type
Fee Income By Type 53 28% of Operating Income $ 1.0 + Billion in Assets Under Management Focused on growing Wealth Management Bank Card Services Secondary Mortgage 3Q12 YTD: $44.5 Million See endnotes (19)
Slide 52: Continued CD Repricing Opportunities
Continued CD Repricing Opportunities 54 Average CD Price in past 30 days ~ 20 BPS Upcoming Maturities (in millions) Amount Yield 4th Quarter 2012 251.1 $ 0.47% 1st Quarter 2013 220.4 $ 0.45% 2nd Quarter 2013 116.1 $ 0.48%
Slide 53: Market Demographics
Market Demographics 55 See endnotes (20) Franchise South Carolina 1.24% 6.02% 41,607 $ 18.55% North Carolina 1.29% 6.55% 46,924 19.23% Georgia 0.90% 4.79% 42,941 19.09% SCBT Weighted Average 1.16% 5.77% 42,911 18.71% National 0.63% 3.42% 50,227 $ 14.55% Population Growth Rate Household 2010-2011 201
Slide 54: South Carolina Deposit Market Share
South Carolina Deposit Market Share 56 94 FDIC Insured Institutions, $67.9 Billion Total Deposits Rank Institution (in Millions) Deposit Share 1 Wells Fargo & Co $12,188 18.1% 2 Bank of America Corp 9,114 13.5% 3 BB&T Corp 6,939 10.30% 4 First Citizens Bancorp 6,214 9.22% 5 TD Bank 3,489 5.2% 6 Syno
Slide 55: Northeast Georgia Deposit Market Share
Northeast Georgia Deposit Market Share 57 43 FDIC Insured Institutions, $10.6 Billion Total Deposits Rank Institution (in Millions) Deposit Share 1 Wells Fargo 1,315 12.4% 2 Regions Bank 1,152 10.9% 3 SunTrust Bank 893 8.4% 4 United Community Bank 873 8.3% 5 SCBT 842 8.0 % 6 Synovus 818 7.7% 7 BB&T
Slide 56: Unemployment Data
14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Sep-02 Sep-03, 58 Unemployment Data Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 —North Carolina © —SouthCarolina =—Georgia FINANCIAL CORPORATION"
Slide 57: S.C. Real Estate Markets
S.C. Real Estate Markets 59 See endnotes (21) Beaufort 761 796 4.6% 178.2 175 -1.8% 196 202 3.1% Charleston Trident 7,131 7,842 10.0% 179.9 190 5.6% 109 103 -5.5% Coastal Carolinas 5,859 6,392 9.1% 139.6 139 -0.5% 180 174 -3.3% Gr. Columbia 4,907 5,699 16.1% 140 142 1.4% 118 117 -0.8% Gr. Greenville
Slide 58: Analyst Recommendations
Analyst Recommendations 60 ANALYST Third Quarter 2012 RECOMMENDATION FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM SunTrust Robinson Humphrey BUY Wunderlich Securities BUY BB&T Capital Markets HOLD Sandler O’Neill + Partners HOLD
Slide 59: 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 61 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.scbtonline.com
Slide 60: Endnotes
Endnotes 1. Source: SNL Financial . Pricing data as of 10/31/12.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 a
SCBT Financial — Merger or Acquisition (November 2012) on 6ix