Slide 1: SCBT Financial Corporation
SCBT FINANCIAL CORPORATION
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 matt
Slide 3: Largest publicly traded bank headquartered in South Carolina
Largest publicly traded bank headquartered in South Carolina Serving the banking needs of customers within the Carolinas for 77 years and Georgia for 107 years Strong asset quality and credit underwriting remain the fundamentals of SCBT SCBT Financial Corporation
Slide 4: SCBT Footprint
SCBT Footprint North Carolina 3 branches $ 212 Million Deposits #8 Rank in Charlotte MSA South Carolina 46 branches $ 2.48 Billion Deposits #8 Rank Northeast Georgia 29 branches $ 514 Million Deposits #5 Rank Headquarters-Columbia, SC As of June 30, 2011
Slide 5: Vision and Mission
VISION To be a top-performing Regional Bank in the Southeast. MISSION Our mission is to build a high-performing, Regional Bank based on a balance of soundness, profitability and growth. We will accomplish this through relationship banking, delivered by engaged employees with clear strategic goals, o
Slide 6: Strategic Areas of Focus
Strategic Areas of Focus LEADERSHIP FINANCIAL a CORPORATION*
Slide 7: Impact to SCBT
Impact to SCBT Focus Differentiates SCBT Low Turnover Attracts Customers and Employees Clear Roadmap
Slide 8: Highlights of SCBT
Highlights of SCBT Profitable Every Quarter of Downturn Fortress Balance Sheet Improved Credit Trends 77 Years of Service in South Carolina 107 Years of Service in Georgia Strong Culture Consistent Growth Organic Growth Selective M&A strategy Well-positioned for Future
Slide 9: 2nd Quarter 2011 Highlights
2nd Quarter 2011 Highlights Solid Net Income, $4.9 million – best performance in 8 quarters Charge-offs of 71 bps – best since Dec. 2008 Consistent Growth – Organic Loans of $57.3 million Fee Income up in all lines Habersham integration complete
Slide 10: Goals and Priorities
Goals and Priorities Execute and integrate Habersham Prepare for consolidation Focus on organic growth Return to normalized EPS
Slide 11: Leadership
Leadership Ability to attract talent Experienced Executive Management Team Executive Position Years in Banking Years with SCBT Robert R. Hill, Jr. CEO 23 16 John C. Pollok Sr. EVP, COO 25 15 Joe E. Burns Sr. EVP, CRO 34 11 John F. Windley President, CBO 35 9 Donald E. Pickett EVP, CFO 16 2
Slide 12: South Carolina Deposit Market Share
South Carolina Deposit Market Share Note: No change in rank from prior year Source: FDIC Summary of Deposits as of 6/30/2010. Rank Institution ($000) Deposits Share Market Branches 1 Wells Fargo & Co (CA) $11,688,628 16.64% 150 2 Bank of America (NC) 8,306,290 11.82% 115 3 BB&T (NC) 6,194,086 8.82%
Slide 13: Charlotte Deposit Market Share
Charlotte Deposit Market Share Note: SCBT moved from 9th per 6/30/09 FDIC Summary of Deposits Source: FDIC Summary of Deposits as of 6/30/2010. Rank Institution ($000) Deposits Share Market Branches 1 Bank of America (NC) $50,782,838 56.53% 61 2 Wells Fargo & Co (CA) 24,474,332 27.24% 78 3 BB&T (NC)
Slide 14: Northeast Georgia Deposit Market Share
Northeast Georgia Deposit Market Share Source: FDIC Summary of Deposits as of 6/30/2010. Rank Institution ($000) Deposits Share Market Branches 1 United Community (GA) 2,250,000 13.2% 23 2 Wells Fargo & Co (CA) 1,431,200 8.4% 22 3 Regions (AL) 1,418,200 8.3% 32 4 Synovus Financial (GA) 1,171,100 6.9
Slide 15: Capital Raise
Capital Raise Private Placement of $35 million in contingent capital, at $31 per share Investor confidence in SCBT’s strategic plan Positions SCBT to further participate in strategic opportunities and consolidations within the industry
Slide 16: Market Performance
Market Performance Data as of 7/20/11. Source: SNL Financial and Company filings. KRX is a composition of 50 regionally diversified mid & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification stand
Slide 17: BankMeridian
BankMeridian
Slide 18: Transaction Overview
Transaction Overview SCBT has purchased and assumed certain assets and liabilities from the FDIC as receiver of BankMeridian N.A., Columbia, SC No holding company assets or liabilities Purchased approximately $240 million in total assets, including $176 million in loans (1) Substantially all loans a
Slide 19: Transaction Rationale
Transaction Rationale Consistent with SCBT’s strategy; meets goals and priorities Immediately accretive to EPS and Tangible Book Value Opportunity to leverage excess liquidity Strong pro forma capital No capital raise necessary Familiar customer base and loan portfolio in SCBT’s legacy markets Meani
Slide 20: Proven Acquirer
Proven Acquirer 20 Data Source: SNL Financial SCBT legacy branches Disciplined FDIC bidder with loss sharing experience Key FDIC-Assisted Transactions Assets ($mm) Branches BankMeridian, N.A. $240 3 Habersham Bank 388 8 Community Bank & Trust 1,017 36
Slide 21: Overview of BankMeridian, N.A.
Overview of BankMeridian, N.A. 21 Data Source: SNL Financial Charleston Columbia Greenville Spartanburg County, SC Distance: 236 ft Richland County, SC Hilton Head Beaufort County, SC Distance: 1.1 mi Distance: 0.9 mi SCBT BankMeridian, N.A.
Slide 22: Soundness
SUUNDNESS
Slide 23: Credit Quality
Credit Quality Source: SNL Financial and Company filings. Data as of 3/31/11. KRX is a composition of 50 regionally diversified mid- & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification standard
Slide 24: Credit Quality Ratios
Credit Quality Ratios 2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Non-Performing Assets / Total Assets* 2.37% 2.39% 2.41% 2.29% 2.44% Non-Performing Assets / Total Loans & OREO* 3.84% 3.80% 3.74% 3.83% 3.86% Allow. Loan Losses / Total Loans* 2.07% 2.07% 2.07% 2.05% 2.00% Allow. Loan Losses / Non-Performing Loans*
Slide 25: Capital
Capital Source: SNL Financial and Company filings. Data as of 3/31/11. KRX is a composition of 50 regionally diversified mid- & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification standards. Caro
Slide 26: Profitability
PROFITABILITY
Slide 27: Profitability
Profitability 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. For 2008, the loss related to the disposal of Freddie Mac Preferred Stock i
Slide 28: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power * Represents after-tax gain from CBT acquisition In Millions 7.4 9.3 10.6 11.8 12.4 17.5 20.5 23.9 24.4 24.8 29.5 35.6 37.8 46.0 52.2 53.4 21.9 115.9
Slide 29: Net Interest Margin (TE)
Net Interest Margin (TE) Source: BHC Performance Report. Peers are BHC with assets between $3 billion & $10 billion
Slide 30: Operating Efficiency
Operating Efficiency 63.8% 66.05% 63.2% 61.2% 46.7% 72.21%
Slide 31: Dividends
Dividends Dividend paid for 136 consecutive quarters since 1976 Prior to 1976, dividends were paid semi-annually 2nd Quarter 2011 includes declared on 7/29/11, record date of 8/19/11, payable on 8/26/11 $0.54 $0.57 $0.63 $0.66 $0.68 $0.68 $0.68 $0.68 $0.68 $0.68 $0.68 $0.34
Slide 32: Growth
[LOGO]
Slide 33: Growth Strategy
Growth Strategy Build strong bank in South Carolina, North Carolina, and Georgia Organic Growth is Top Priority FDIC Deals Whole Bank Acquisitions Growth Goals: Drive EPS Top 5 in market share Build a franchise
Slide 34: Loan Portfolio – June 30, 2011
Loan Portfolio – June 30, 2011 Type $ Mix % Mix Construction / Land Development $ 338.3 14.1% Commercial Non Owner Occupied $ 306.7 12.7% Consumer Owner Occupied $ 631.6 26.3% Commercial Owner Occupied $ 669.2 27.8% Commercial & Industrial $ 349.0 14.5% Consumer Non Real Estate $ 80.1 3.3% Other $ 3
Slide 35: Organic Loan Growth
Organic Loan Growth In Millions * Bars represent Non-Acquired Loan Growth, linked quarter
Slide 36: Non-Performing Loans
Non-Performing Loans Source: SNL Financial and Company filings. Data as of 03/31/11 KRX is a composition of 50 regionally diversified mid- & small-cap banking institutions in the U.S. The index is calculated using an equal-weighted method and components comply with the GICS and ICS classification st
Slide 37: Deposit Mix – June 30, 2011
Deposit Mix – June 30, 2011 Demand Deposits 19% Savings 8% Interest Bearing Deposits 41% CD < $100,000 18% CD > $100,000 14%
Slide 38: Growth – Core & Total Deposits
Growth – Core & Total Deposits In Millions *Core Deposits exclude all certificates of deposits *As of June 30, 2011 Core deposits grew $286 million since Dec-10; Legacy SCBT $104 million / NE Georgia $182 million 2011 YTD # Transaction account growth for Legacy SCBT – 13.2% annualized Total YTD $ Ba
Slide 39: Business Mix by Market – June 30, 2011
Business Mix by Market – June 30, 2011 Loans Deposits Inland SC 45% Coastal SC 21% Charlotte MSA 19% Georgia 15% Inland SC 43% Coastal SC 13% Charlotte MSA 16% Georgia 28% *Inland SC includes Florence
Slide 40: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 41: Index – Supplemental Information
Index – Supplemental Information Unemployment Rates SC real estate markets Fee income by type Credit Coverage ratios Credit Trends Construction / Land Development Loans Construction/ Land Development Loan Mix Vintage/New Loan Mix Loan portfolio summary – Type NPA’s by Region Classifieds by Region NP
Slide 42: Unemployment Rates in SCBT Markets
Unemployment Rates in SCBT Markets Georgetown SCBT Divisions Charlotte Greenville Columbia Georgetown Orangeburg/Low Country Charleston Hilton Head North Georgia SC 10.0% NC 9.7% GA 9.8% Columbia Charlotte Hilton Head Charleston Greenville Orangeburg/Low Country North Georgia 11.0% 10.4% 10.7% 10.4%
Slide 43: S.C. Real Estate Markets
S.C. Real Estate Markets Source: June 2011 Rates from S.C. Realtors MLS Stats Beaufort 505 508 0.6% 175 180 2.9% 163 199 22.1% Charleston Trident 4,709 4,536 -3.7% 185 177 -4.3% 109 112 2.8% Coastal Carolinas 3,754 3,800 1.2% 150 139 -7.3% 172 180 4.7% Gr. Columbia 4,067 3,088 -24.1% 139 140 0.7% 10
Slide 44: Fee Income By Type
Fee Income By Type 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 Service charges on deposit accounts 5,582 $ 5,683 $ 5,554 $ 5,030 $ 5,615 $ Bankcard services income 2,348 2,397 2,443 2,659 3,045 Mortgage banking income 1,267 1,934 2,519 863 1,125 Trust and investment services income 1,187 1,199 1,081 1,249 1,525 S
Slide 45: 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) Source: SNL Financial, FDIC and FFEIC, KBW Peer Data as of 3/31/11 Asset quality ratios exclude loans covered by the FDIC and loans held for sale
Slide 46: Credit Trends
Credit Trends (dollars in millions) Texas ratio – Delinquent loans + nonperforming assets / Tangible Common Equity + ALLL Criticized Loans – Special Mention Classified Assets (Classified loans & OREO) *Excludes assets related to covered loss share 30-Jun-10 30-Sep-10 31-Dec-10 31-Mar-11 30-Jun-11 85
Slide 47: Construction / Land Development Loans
Construction / Land Development Loans 4Q 2007 2Q 2011 Loan Type 4Q07 % 2Q11 % Consumer Construction $ 50,269 9% $ 45,880 14% Land/Lots $ 173,545 32% $ 150,500 45% Construction Loans to Builders $ 73,768 13% $ 16,982 5% Commercial Construction $ 106,821 19% $ 28,723 8% Residential Lot Loans to Indivi
Slide 48: Construction / Land Development Loan Mix – 2Q 2011
Construction / Land Development Loan Mix – 2Q 2011 *New=Origination date of 1/1/08 or later
Slide 49: Vintage / New Loan Mix – 2Q 2011
Vintage / New Loan Mix – 2Q 2011 *New=Origination date of 1/1/08 or later, non-acquired loans
Slide 50: Loan Portfolio Summary - Type
Loan Portfolio Summary - Type * Loans not acquired (dollars in thousands) Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Construction / land development 422,866 $ 402,256 $ 391,987 $ 370,442 $ 338,288 $ Commercial non-owner occupied 308,980 322,050 320,203 332,773 306,698 Consumer owner occupied 307,398 314,933
Slide 51: NPAs by Region
NPAs by Region *Second Quarter branch impairment Region Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 (in thousands) Beaufort 7,201 $ 7,368 $ 11,543 $ 10,418 $ 26,072 $ 26,659 $ 26,401 $ 25,949 $ 26,806 $ Charleston 355 4,591 4,528 3,867 4,074 4,090 3,487 8,054 7,477 Grand Strand 8,
Slide 52: Classified / Loans & OREO by Region
Classified / Loans & OREO by Region *Second Quarter branch impairment Region Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 (in thousands) Beaufort 32,136 $ 40,766 $ 48,464 $ 43,979 $ 47,953 $ 46,279 $ 44,377 $ Charleston 26,844 28,849 28,676 29,737 28,694 22,406 16,234 Grand Strand 39,986 39,042
Slide 53: NPAs by Type
NPAs by Type (dollars in thousands) *Loans and OREO not acquired Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Jun-11 Construction/Land Development 37,611 $ 34,327 $ 28,390 $ 29,435 $ 28,525 $ 30.4% Commercial Non-Owner Occupied 11,875 8,740 10,073 12,192 12,630 13.5% Commercial Owner Occupied 9,353 8,754 13,0
Slide 54: Charge Offs by Type
Charge Offs by Type (dollars in thousands) Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Jun-11 Construction/Land Development 3,630 $ 5,463 $ 4,643 $ 4,537 $ 2,240 $ 49.0% Commercial Non-Owner Occupied 488 1,493 512 1,236 520 11.4% Commercial Owner Occupied 917 376 504 729 303 6.6% Consumer Owner Occupied 1,34
Slide 55: Investment Portfolio Mix
Investment Portfolio Mix *Fair value for AFS securities; amortized/accreted cost for HTM securities. Does not include FRB stock, FHLB stock, or investment in unconsolidated subsidiaries. Investment Portfolio (AFS & HTM) As of 6/30/11 Tax Equivalent Yield 3.90% Weighted Average Life 4.0 years Modifie
Slide 56: Investment Portfolio – June 30, 2011
Investment Portfolio – June 30, 2011 (Dollars in thousands) Includes held-to-maturity and available-for-sale municipal securities. Note: All Agency MBS and CMOs carry the backing of the agency or GSE and have an implied AAA rating. Book Value Market Value Other Comprehensive Income AAA - A BBB BB or
Slide 57: Total Assets by Risk Weighting
Return on Risk Weighted Assets = 0.40% (Peer Median (1) = 0.22%) Risk Weighted Assets / Total Assets = 63.6% (Peer Median (1) = 72.8%) Peer % of 100% RWAs = 63.8% Total Assets by Risk Weighting % Source: SNL Financial, FDIC and FFEIC, KBW Data as of 3/31/11 (dollars in millions) Asset quality ratios
Slide 58: 2Q 2011 Loan Valuation
2Q 2011 Loan Valuation Consolidated (1) Certain loan pools showed improved credit loss expectations by $2.3 million, while others deteriorated by $3.5 million, which resulted in stronger yield within the net interest margin. (2) The improvement in cash flow expectations on certain pools results in r
Slide 59: Continued CD Repricing Opportunities
Continued CD Repricing Opportunities Average CD Price in past 3 months 0.49% Upcoming Maturities Amount Yield 3rd Quarter 2011 314.1 $ 1.01% 4th Quarter 2011 251.3 $ 0.95% 1st Quarter 2012 124.7 $ 0.90%
Slide 60: Market Demographics
Market Demographics Source: SNL Financial, Inc. South Carolina Franchise 18.46% 8.11% $48,142 13.37% North Carolina Franchise 34.87 13.77 66,472 14.20 Georgia Franchise 30.68 8.77 46,184 11.77 National 10.59 3.85 54,442 12.39 Population Growth Rate 2000-2010 2010-2015 Household Median Income 2010 Pr
Slide 61: Columbia MSA – Economic Drivers
Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw Fairfield Lexington Richland Marlboro Dillon Darlington Lee Sumter Florence Marion Horry Williamsburg Georgetown Clarendon B
Slide 62: Charlotte MSA – Economic Drivers
Charlotte MSA – Economic Drivers 62 HEALTH SERVICES | FINANCIAL | SERVICES | WHOLESALE TRADE MANUFACTURING | TRANSPORTATION Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw
Slide 63: Greenville MSA – Economic Drivers
Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw Fairfield Lexington Richland Marlboro Dillon Darlington Lee Sumter Florence Marion Horry Williamsburg Georgetown Clarendon B
Slide 64: Charleston MSA – Economic Drivers
Oconee Pickens Greenville Anderson Spartanburg Cherokee York Union Chester Laurens Abbeville Newberry Greenwood McCormick Saluda Edgefield Aiken Lancaster Chesterfield Kershaw Fairfield Lexington Richland Marlboro Dillon Darlington Lee Sumter Florence Marion Horry Williamsburg Georgetown Clarendon B
Slide 65: Analyst Recommendations
Analyst Recommendations ANALYST Second Quarter 2011 RECOMMENDATION FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM Raymond James MARKET PERFORM Sandler O’Neill + Partners HOLD Scott & Stringfellow HOLD Sterne, Agee & Leach NEUTRAL SunTrust Robinson Humphrey BUY Wunderlich Securities HOLD
Slide 66: Investor Contacts
Investor Contacts Robert R. Hill, Jr. Chief Executive Officer John C. Pollok Senior Executive Vice President and Chief Operating Officer Donald E. Pickett Executive Vice President and Chief Financial Officer 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.scbtonline.com