Southstate Bank Corporation · NYSE:SSB
Southstate Bank — First Financial Holdings — Q1 2014 Earnings Presentation
47 slides from Southstate Bank's earnings presentation, May 13, 2014
Slide 1: Investor Presentation First Quarter 2014
FIRST FINANCIAL HOLDINGS, INC. Investor Presentation First Quarter 2014
Slide 2: Forward Looking Statements and Non GAAP Measures
Forward Looking Statements and Non GAAP Measures Cautionary Statement Regarding Forward Looking Statements Statements included in this report 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 Se
Slide 3: First Financial Holdings, Inc. Overview
First Financial Holdings, Inc. TICKER SYMBOL: SCBT Largest Publicly Traded Bank Holding Company Headquartered in SC Assets - $8.0 Billion Loans - $5.6 Billion Deposits - $6.6 Billion GEORGIA Charlotte Wilmington Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Athens Gainesville Ge
Slide 4: Highlights of SCBT
Highlights of SCBT Consistent Organic Growth Large and Low Cost Deposit Base 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 Sheet Focus on Integration and Exe
Slide 5: How We Operate
How We Operate The Company Soundness Profitability Growth CULTURE LEADERSHIP VALUES
Slide 6: Market Performance Since 2008
Market Performance Since 2008 See endnotes (3) 0.0 50.0 100.0 150.0 200.0 250.0 SCBT Total Return SCBT Carolina Peers Georgia Peers KRX 67.3% (24.6%) 86.3% (32.2%) 22.7%
Slide 7: Largest SC Bank Merger
LARGEST SC BANK MERGER SCBT Financial Corporation and First Financial Holdings, Inc. Closed July 26, 2013
Slide 8: FFCH Merger Update
Branch consolidation – 20 in total 10 branches in 1st Quarter 2 branches in late 2nd Quarter 8 branches during conversion Cost Saves ~ 30 % by end of 2014 One-time merger related expenses ~ $28 million (after-tax) Double digit EPS accretive (excluding one-time merger costs) in the first full year Li
Slide 9: Interest Earning Assets
Interest Earning Assets Assets 03/31/2014 12/31/2013 Net Change Short-Term Investments $ 412.9 $ 320.1 $ 92.8 Investment Securities 814.5 812.6 1.9 Loans - Acquired 2,637.0 2,825.8 (188.8) Loans - Non-Acquired 2,980.0 2,865.2 114.8 Loans Held for Sale 57.2 30.6 26.6 Total Interest Earning Assets $ 6
Slide 10: Select Balance Sheet Items – Linked Quarter
Select Balance Sheet Items – Linked Quarter Assets 3/31/2014 12/31/2013 Net Change Cash & Cash Equivalents $ 612.6 $ 479.5 $ 133.1 Investment Securities 814.5 812.6 1.9 Loans - Acquired 2,637.0 2,825.8 (188.8) Loans - NonAcquired 2,980.0 2,865.2 114.8 Goodwill & Intangibles 376.7 379.0 (2.3) Total A
Slide 11: Franchises that Complement Each Other
MSA SCBT Rank Deposits FFCH Rank Deposits Combined Hilton Head 2 7 2 Georgetown 8 4 2 Charleston 10 2 2 Florence 10 7 4 Greenville 8 15 6 Myrtle Beach 19 6 5 Franchises that Complement Each Other See endnotes (4)
Slide 12: Deposit Market Share in South Carolina
South Carolina # 5 Market Share See endnotes (4) Rank Institution Deposits ($mm) Market Share (%) Branches 1 Wells Fargo Bank NA 13,308 19.43 146 2 Bank of America NA 9,067 13.24 102 3 Branch Banking and Trust Co. 7,446 10.87 116 4 First Citizens Bank and Trust Co. Inc. 6,387 9.33 165 First Financia
Slide 13: Soundness
SOUNDNESS 13
Slide 14: Credit Quality
Credit Quality See endnotes (5) (Non-Acquired Loans)
Slide 15: Capital
Capital 18.00% 16.46% ™ 14.83% 15.00% 13,69¢14.23% 12.7% 12.99% 12.00% 9.65% 9.69% S00 S688) a, See 7.32% S 6.00% 3.00% 0.00% Tangible Common Leverage Ratio Tier 1 Capital Ratio Total Risk-Based Capital Equity/Assets Ratio @ SCBT as of 3/31/14 ME KRX Medianas of 3/31/14 id Carolina Median 12/31/13
Slide 16: Profitability
PROFITABILITY 16
Slide 17: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power Pre-tax, Pre-Credit Operating Earnings In Millions See endnotes (1)
Slide 18: Net Interest Margin
Net Interest Margin Earning Assets Funding
Slide 19: Operating Efficiency Ratio - QTD
Operating Efficiency Ratio - QTD 20 See endnotes (6)
Slide 20: Common Stock Dividends
Common Stock Dividends See endnotes (7)
Slide 21: Growth
GROWTH 22
Slide 22: Loan Portfolio Mix
Loan Portfolio Mix 4.3 % 5-YR CAGR (2008 – 2013) Organic Loan Growth In Millions See endnotes (8) $2,841 $3,613 $5,679
Slide 23: Growth – Core & Total Deposits
Growth – Core & Total Deposits In Millions Growth – Core Deposits* 37.6% 5-YR CAGR (2008 – 2013) Growth – Total Deposits 24.9% 5-YR CAGR (2008 – 2013) $3,004 $2,350 $3,254 See endnotes (9) $4,298 $6,555 $5,029
Slide 24: Wealth Management
Wealth Management Assets Under Management (Care) in millions Total Revenue in thousands Solid Foundation 800+ Relationships 18,000+ Retail Investment A/C 60+ Team members Trust conversion complete Investment Services conversion in mid 2Q14 Future Focus Drive organic sales Leverage our banking partne
Slide 25: Mortgage
Mortgage Mortgage Market Share - #3 in South Carolina $1.7 Billion in total production Retail Mortgage: 65 originators in 13 regional markets Wholesale Mortgage: Focus in SC, NC, GA & southeast VA markets Portfolio Servicing: $3.0 Billion in mortgages Sell Direct: Capital Markets model and deal dire
Slide 26: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 27: Index – Supplemental Information
Index – Supplemental Information Branch Consolidations 29 Loan Portfolio Mix 34 Investment Portfolio 35 Fee Income by Type 36 Market Demographics 37 Analyst Recommendations 46
Slide 28: Our Company with Branch Consolidations
Our Company with Branch Consolidations SCBT Branch Consolidations SCBT Branches GEORGIA Charlotte Wilmington Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Athens Gainesville Georgetown Charleston NORTH CAROLINA SOUTH CAROLINA Greenville
Slide 29: Summary of Branch Consolidation
Summary of Branch Consolidation Branch consolidation – 20 in total 10 branches in 1st Quarter 2014 2 branches in late 2nd Quarter 2014 8 branches during conversion Both legacy SCBT and First Federal branches will be closed Market Consolidations Proximity to nearest Branch Charleston 5 < 2.5 miles Fl
Slide 30: Branch Consolidation Detail
Branch Consolidation Detail Summerville 1.29 miles 1.89 miles Open Branch Closed Branch 2.27 miles 2.06 miles Western Charleston Open Branch Closed Branch Mt. Pleasant 1.11 miles 1.36 miles Open Branch Closed Branch Downtown Charleston Open Branch Closed Branch 0.04 miles 0.96 miles
Slide 31: Branch Consolidation Detail
Branch Consolidation Detail Hilton Head Open Branch Closed Branch Greenville Open Branch Closed Branch Florence Open Branch Closed Branch 1.05 miles Moncks Corner Open Branch Closed Branch
Slide 32: Branch Consolidation Detail
Branch Consolidation Detail 1.13 miles Georgetown Open Branch Closed Branch 2.12 miles 1.90 miles Myrtle Beach Open Branch Closed Branch 2.90 miles 1.66 miles Murrells Inlet Open Branch Closed Branch North Myrtle Beach 0.38 miles Open Branch Closed Branch
Slide 33: Loan Portfolio Mix
Loan Portfolio Mix $2,980 $282 $2,355 $5,617 Million
Slide 34: Bank Investment Portfolio Mix
Bank Investment Portfolio Mix Bank Fixed Income Investment Portfolio (AFS & HTM) Tax Equivalent Yield Weighted Average Life Modified Duration Total Carrying Value 2.78% 4.04 years 3.63 $ 800,510 See endnotes (11)
Slide 35: Fee Income By Type
Fee Income By Type 1Q2014: $28 Million See endnotes (12)
Slide 36: Market Share by County
North Carolina South Carolina Georgia Atlanta Raleigh Charlotte Walterboro Hilton Head Cornelia Market share (county) #5 or higher #6 or lower See endnotes (13)
Slide 37: South Carolina Market Share
Columbia MSA 1 Wells Fargo 30.27 2 Bank of America 24.37 3 BB&T 13.36 4 First Citizens 9.77 8 First Financial Holdings 2.32 Total $15.7 Billion 100 % Ranked # 1 Berkeley County Georgetown MSA 1 Wells Fargo 16.54 2 First Financial Holdings 15.72 3 Toronto-Dominion Bank 15.63 4 BB&T 11.66 5 Bank of Am
Slide 38: South Carolina Market Share
South Carolina Market Share Hilton Head MSA 1 Wells Fargo 17.76 2 First Financial Holdings 16.64 3 Bank of America 9.46 4 BB&T 9.45 5 CoastalSouth Bancshares 8.98 Total $3.4 Billion 100 % Orangeburg MSA 1 First Financial Holdings 39.34 2 First Citizens 24.25 3 Bank of America 9.95 4 FMB of S.C. Banc
Slide 39: Georgia Market Share
Georgia Market Share Athens-Gainesville MSA 1 Wells Fargo 27.76 2 SunTrust Banks 24.80 3 Synovus Financial Corp. 21.56 4 BB&T 21.80 14 First Financial Holdings 3.85 Total $5.6 Billion 100 % Savannah MSA 1 Wells Fargo 21.70 2 SunTrust Banks 19.53 3 Bank of America 12.85 4 First Financial Holdings 11.
Slide 40: North Carolina Market Share
North Carolina Market Share Wilmington MSA 1 BB&T 27.17 2 Wells Fargo 16.71 3 First Citizens BancShares 11.98 4 Bank of America 8.15 9 First Financial Holdings 3.75 Total $5.9 Billion 100 % Charlotte MSA 1 Bank of America 76.95 2 Wells Fargo 14.37 3 BB&T 2.57 4 Fifth Third 0.89 11 First Financial Ho
Slide 41: Unemployment Data
14.0 12.0 10.0 © 8.0 6.0 4.0 2.0 - 0.0 Unemployment Data + 2 F F CELE EE ELE EE 8 Ss 2 9S SS - 2» National —NorthCarolina © ——SouthCarolina ——Georgia
Slide 42: South Carolina Real Estate Markets
South Carolina Real Estate Markets Number of Residential Homes, Condos & Villas Sold Median Price of Residential Homes (in Thousands) Average Days on the Market (DOM) Mar-13 YTD Mar-14 YTD % Change Mar-13 YTD Mar-14 YTD % Change Mar-13 YTD Mar-14 YTD % Change Beaufort 303 289 -4.6% $ 140 $ 130 -7.1%
Slide 43: Demographic Highlights In Key Markets
Demographic Highlights In Key Markets State Population Growth -CAGR Projected MSA Population Growth -CAGR Projected Unemployment See endnotes (16)
Slide 44: Median Household Income
Median Household Income See endnotes (17)
Slide 45: Analyst Recommendations
Analyst Recommendations ANALYST First Quarter 2014 RECOMMENDATION BB&T Capital Markets BUY FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM Raymond James OUTPERFORM Sterne Agee BUY SunTrust Robinson Humphrey BUY Wunderlich Securities BUY
Slide 46: 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 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.scbtonline.com
Slide 47: Endnotes
Endnotes 1. Excludes Merger Expenses 2. Excludes Merger & OREO / Loan-related expenses 3. Source: SNL Financial. Pricing data as of 5/2/14. 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 P
First Financial Holdings — Q1 2014 Earnings Presentation on 6ix