Southstate Bank Corporation · NYSE:SSB
Southstate Bank — First Financial Holdings — Q4 2013 Earnings Presentation
46 slides from Southstate Bank's earnings presentation, Feb 26, 2014
Slide 1: Investor Presentation Fourth Quarter 2013
FIRST FINANCIAL HOLDINGS, INC. Investor Presentation Fourth Quarter 2013
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: Largest Publicly Traded Bank Holding Company Headquartered in SC
Largest Publicly Traded Bank Holding Company Headquartered in SC Assets -$7.9 Billion Loans -$5.6 Billion Deposits -$6.6 Billion GEORGIA Charlotte Wilmington Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Athens Gainesville Georgetown Charleston NORTH CAROLINA SOUTH CAROLINA Gree
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 The Company
How We Operate The Company Soundness Profitability Growth
Slide 6: Market Performance Since 2008
Market Performance Since 2008 See endnotes (3) (1) 90.2% 71.4% 22.6% (25.0%) (32.0%)
Slide 7: Largest SC Bank Merger
LARGEST SC BANK MERGER SCBT Financial Corporation and First Financial holdings, inc. closed July 26, 2013 first financial holdings, inc. financial corporation.
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 12/31/2013 9/30/2013 Net Change FFS & Reverse Repos $ 294.9 $ 378.8 $ ( 83.9) Investment Securities 812.6 652.6 160.0 Loans - Acquired 2,814.1 2,994.2 (180.1) Loans - NonAcquired 2,865.2 2,741.2 124.0 Loans Held for Sale 30.6 52.5 ( 21.9) Total Interest Earning Assets
Slide 10: Select Balance Sheet Items – Linked Quarter
Select Balance Sheet Items – Linked Quarter Assets 12/31/2013 9/30/2013 Net Change Cash & Cash Equivalents $ 479.5 $ 645.2 ($ 165.7) Investment Securities 812.6 652.6 160.0 Loans - Acquired 2,814.1 2,994.2 (180.1) Loans - NonAcquired 2,865.2 2,741.2 124.0 Goodwill & Intangibles 379.3 381.4 (2.1) Tot
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 6 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% 1686 14.94% 15.00% 14.47% 13.58% EE 2.69 12.00% 10.05% 9.30% 9.47! 9.00% - 7.97% 855% 3.02% 6.00% 3.00% 0.00% Tangible Common Leverage Ratio Tier 1 Capital Ratio Total Risk-Based Equity/Assets Capital Ratio @ SCBT as of 12/31/13 Wi KRX Median as of 9/30/13 Carolina Median 9/30/13
Slide 16: Profitability
PROFITABILITY 16
Slide 17: Profitability
Profitability NET OPERATING INCOME (in Thousands) See endnotes (2) OPERATING EPS
Slide 18: Consistent Long-Term Earnings Power
Consistent Long-Term Earnings Power In Millions See endnotes (1)
Slide 19: Net Interest Margin
Net Interest Margin See endnotes (6)
Slide 20: Operating Efficiency Ratio - QTD
Operating Efficiency Ratio - QTD See endnotes (7)
Slide 21: Common Stock Dividends
Common Stock Dividends See endnotes (8)
Slide 22: Growth
GROWTH 22
Slide 23: Loan Portfolio Mix
Loan Portfolio Mix 4.3 % 5-YR CAGR (2008 – 2013) Organic Loan Growth In Millions See endnotes (9)
Slide 24: 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 (10) $4,298 $6,555 $5,029
Slide 25: Wealth Management
Wealth Management 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 partners Seek operational efficiencies Streamline department segregation and
Slide 26: 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 27: Supplemental Information
SUPPLEMENTAL INFORMATION 2 _FIRST FINANCIAL HOLDINGS, INC. CRN 10! PINGS, IN a
Slide 28: Index – Supplemental Information
Index – Supplemental Information Branch Consolidations (NEW)29 Loan Portfolio Mix 34 Investment Portfolio35 Fee Income by Type36 Market Demographics37 Analyst Recommendations44
Slide 29: 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 30: 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 4 < 2.5 miles Fl
Slide 31: 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 z
Slide 32: 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 33: 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 34: Loan Portfolio Mix
Loan Portfolio Mix $2,865 $ 309 $2,517 $5,691 Million
Slide 35: 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 2.82% 4.27 years 3.80 $795,549 See endnotes (12)
Slide 36: Fee Income By Type
Fee Income By Type 4Q2013: $28 Million See endnotes (13)
Slide 37: Northeast Georgia Deposit Market Share
Northeast Georgia Deposit Market Share 40 FDIC Insured Institutions, $10.8 Billion Total Deposits Rank Institution (in Millions) Deposit Share 1 Wells Fargo 1,467 13.6% 2 Regions Bank 1,074 9.95% 3 SunTrust Bank 1,022 9.47% 4 United Community Bank 874 8.1% 5 Synovus 825 7.7% 6 First Financial Holdin
Slide 38: South Carolina MSA Market Share
South Carolina MSA Market Share Charleston 1 Wells Fargo 22.41 2 First Financial Holdings 16.74 3 Bank of America 13.75 4 First Citizens 6.83 5 Synovus Financial 6.69 Total $9.9 Billion 100 % Walterboro 1 Communitycorp 29.56 2 First Financial Holdings 19.64 3 First Federal of SC FSB 18.75 4 Enterpri
Slide 39: Georgia & North Carolina MSA Market Share
Georgia & North Carolina MSA Market Share Wilmington 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 % Athens-Gainesville 1 Wells Fargo 27.76 2 SunTrust Banks 24.80 3 Synovus Financial Corp. 21.56 4 BB&T
Slide 40: Unemployment Data
Unemployment Data 14.0 0.0 : . - . Dec-02 Dec03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec09 Deci0 Dec-ll Dec-2 Dec-13 National © —North Carolina © —South Carolina ©—Georgia FIRST FINANCI
Slide 41: South Carolina Real Estate Markets
South Carolina Real Estate Markets See endnotes (16) % Change
Slide 42: Demographic Highlights In Key Markets
Demographic Highlights In Key Markets See endnotes (17)
Slide 43: Median Household Income
Median Household Income See endnotes (15)
Slide 44: Analyst Recommendations
Analyst Recommendations ANALYST Fourth Quarter 2013 RECOMMENDATION BB&T Capital Markets BUY FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM Raymond James STRONG BUY Sandler O’Neill + Partners BUY Sterne Agee BUY SunTrust Robinson Humphrey BUY Wunderlich Securities BUY
Slide 45: 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 46: Endnotes
Endnotes Excludes Merger & OREO / Loan-related expenses Excludes Merger Expenses Source: SNL Financial. Pricing data as of 2/7/14.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 Peers inclu
First Financial Holdings — Q4 2013 Earnings Presentation on 6ix