Southstate Bank Corporation · NYSE:SSB
Southstate Bank — SCBT Financial — KBW Investor Conference 2013
51 slides from Southstate Bank's conference presentation, Feb 27, 2013
Slide 1: KBW Investor Conference February 27, 2013
KBW Investor Conference February 27, 2013
Slide 2: Forward-looking statements
Statements included in this presentation 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. Forward looking statements generally include words
Slide 3: SCBT Financial Corporation: Largest Publicly Traded Holding Company Headquartered in SC
Data as of 12/31/2012 SCBT FINANCIAL CORPORATION: LARGEST PUBLICLY TRADED HOLDING COMPANY HEADQUARTERED IN SC Serving the banking needs of customers within the Carolinas for 79 years and Georgia for 112 years 3 Market Cap $ 680.6 million Branches 86 FTE’s 1,324 Asset Size $5.1 billion Deposits $4.3
Slide 4: Highlights of SCBT
HIGHLIGHTS OF SCBT Consistent Organic Growth Large and Low Cost Deposit Base Fee Income Growth and Diversity 4 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 5: How We Operate the Company
HOW WE OPERATE THE COMPANY Soundness LEADERSHIP FINANCIAL 5 CORPORATION
Slide 6: Market Performance
MARKET PERFORMANCE See endnotes (1) Price Performance since 12/31/07 6 47.3% 34.0% (1.5%) (41.1%) (62.6%)
Slide 7: Strategic Partnership of SCBT Financial Corporation and First Financial Holdings
February 20, 2013 Strategic Partnership of SCBT Financial Corporation and First Financial Holdings, Inc.
Slide 8: Partnership Rationale
8 PARTNERSHIP RATIONALE A natural partnership between two culturally similar South Carolina community banks Significant franchise accretion Forms continuous coastal presence from Savannah, GA to Wilmington, NC Enhances market share in all combined markets Strategic Value Financially Attractive Low R
Slide 9: Transaction Terms
100% Stock (tax-free exchange) Fixed exchange ratio of 0.4237x $18.30 (1) $302.4 million (1) Initially will retain First Financial’s $65.0 million of preferred equity outstanding No additional capital required to complete the transaction 5 First Financial Board members will join the Board of SCBT Cu
Slide 10: Strategically Attractive Pro Forma Company
STRATEGICALLY ATTRACTIVE 10 Pro Forma Company At closing and pending shareholder approval, holding company name will be changed to First Financial Holdings, Inc. Consensus 2013 mean EPS estimate of $1.18 per SNL FactSet Research Based upon First Financial’s stated tangible book value per share of $1
Slide 11: Financial Impact
Overall credit mark of $217.9 million NonAcquired mark 5.3%, $118.2 million FDIC Acquired: Gross mark of $99.7 million TBV accretive ~ 3 to 3.5 years Double digit EPS accretive (excluding one-time merger costs) Assumes preferred equity remains outstanding Projected Close in 3rd Quarter 2013 Cost sav
Slide 12: Credit Due Diligence
Comprehensive credit due diligence process to review First Financial’s loan and OREO portfolios Conservative credit mark of 5.3% for NonAcquired / NonFDIC $118.2 63% Commercial loans were reviewed. All loans greater than $650K with additional selective review Review of Consumer portfolio was complem
Slide 13: Logical In-Market Expansion
LOGICAL IN-MARKET EXPANSION 13 SCBT Branches as of 2/15/2013 Financial data as of 12/31/2012 SCBT (82 branches) FFCH (66 branches) NORTH CAROLINA SOUTH CAROLINA GEORGIA Charlotte Wilmington Myrtle Beach Hilton Head Island Savannah Atlanta Florence Columbia Spartanburg Greenville Athens Gainesville O
Slide 14: Franchises That Complement Each Other
MSA SCBT Rank FFCH Rank Pro Forma Hilton Head 2 7 1 Georgetown 8 3 1 Charleston 10 2 2 Florence 10 7 4 Greenville 7 14 5 Myrtle Beach 19 6 6 FRANCHISES THAT COMPLEMENT EACH OTHER 14 Market Share Mortgage Banking - ProForma Mortgage Market Share #4 in South Carolina Wealth Management - Assets Under M
Slide 15: South Carolina #5 Market Share
Data as of 6/30/12 FDIC Summary of Deposits SOUTH CAROLINA #5 MARKET SHARE 15 Deposit Market Share in South Carolina Deposits Market Rank Institution ($mm) Share Branches 1 Wells Fargo & Co. $12,167 18.12 % 145 2 Bank of America Corp. 9,105 13.56 106 3 BB&T Corp. 6,939 10.34 116 4 First Citizens Ban
Slide 16: Benefits to Our Stakeholders
Long-term, dedicated teams Like-minded management and business culture Retention of key management will reinforce continuity Tenured & committed Board of Directors BENEFITS TO OUR STAKEHOLDERS Unlocks shareholder value for both companies Benefit from increased liquidity and dividends for First Finan
Slide 17: Summary
SUMMARY Ideal combination of strategic and financial attractiveness to all parties Will create long-term value for both First Financial & SCBT shareholders Creates an incredibly valuable Southeastern bank Powerful transaction due to the size, scale and diversity of the combined company Low risk, in-
Slide 18: Supplemental Information
SUPPLEMENTAL INFORMATION DT Binena FIRST FINANCIAL CORPORATION” HOLDINGS, INC.
Slide 19: First Financial Holdings, Inc.
Financial data as of 12/31/12 FIRST FINANCIAL HOLDINGS, INC. 19 Corporation Highlights Headquarters Charleston, SC Bank Subsidiary First Federal Bank Investment Advisory Subsidiary First Southeast 401(k) Fiduciaries, Inc. Broker-Dealer First Southeast Investor Services, Inc. Date Established 1934 Ti
Slide 20: Loan & Deposit Composition
LOAN & DEPOSIT COMPOSITION SCBT Loans FFCH Loans SCBT Deposits FFCH Deposits Total Loans $3.6 billion Loan Yield 5.89% Dollars in millions Data as of 12/31/12 (1) Excludes purchase accounting adjustments $6.1 billion Total Loans (1) $6.9 billion Total Deposits (1) 20 Total Loans $2.5 billion Loan Yi
Slide 21: Market Highlights: Charleston
MARKET HIGHLIGHTS: CHARLESTON The Charleston MSA ranked #5 on Forbes’ list of Top Mid-Size Cities for Jobs Boeing South Carolina is home to the 787 Dreamliner final assembly & delivery facility Charleston ranked among the top 10 fastest growing cities for software and Internet technology in 2012 4th
Slide 22: North Carolina Market Highlights: Wilmington
First Financial currently operates 7 branches in the Wilmington, NC MSA North Carolina ranked as Forbes 4th Best State for Business in 2012 Highest net migration rate in the US Low cost of construction attracts future development opportunities in the region Port of Wilmington was recently approved f
Slide 23: Expansion in Attractive Markets
Myrtle Beach, SC MSA Charleston, SC MSA N. Charleston Charleston North Myrtle Beach Myrtle Beach Garden City Beach EXPANSION IN ATTRACTIVE MARKETS 23 NC GA SC SCBT FFCH Hilton Head Pro Forma Map Charleston Myrtle Beach Greenville Greenville, SC MSA Hilton Head-Beaufort, SC MSA Hilton Head Island Sav
Slide 24: Wealth Management Strategies
Strength in Numbers: Combined Assets Under Management of $2.35 Billion Combined revenues of over $12.8 Million Combined team of over 60 members Nationally top-ranking among trust and fiduciary services institutions Competitive platform of fully integrated Wealth Management solutions: Full Service Br
Slide 25: Mortgage Banking Strategies
Pro Forma Mortgage Market Share #4 in SC SCBT #5 / First Financial #8 (6) Platform of integrated Mortgage Banking products: Retail Mortgage: 70 originators covering 12 regional markets Wholesale Mortgage: $600 million in annual production Portfolio Servicing: $2.9 billion in mortgages Sell Direct: A
Slide 26: Soundness
SOUNDNESS
Slide 27: Credit Quality (Non-Acquired)
CREDIT QUALITY (NON-ACQUIRED) 27 See endnotes (7)
Slide 28: Capital
15.00% 12.00% 9.00% 6.00% 3.00% 0.00% CAPITAL 13.12% 13.66% 12.73%, 9.87% 9 aqy, 9.65% 8.71% 7.62% | 15.91% 14.69% 13.99% Tangible Common Leverage Ratio Tier 1 Capital Ratio Total Risk-Based Equity/Assets Capital Ratio m SCBT ™KRX Median Carolina Median FINANCIAL CORPORATION 28
Slide 29: Profitability
PROFITABILITY
Slide 30: Profitability
PROFITABILITY 30 In Millions See endnotes (8)
Slide 31: Consistent Long-Term Earnings Power
CONSISTENT LONG-TERM EARNINGS POWER In Millions
Slide 32: Net Interest Margin
NET INTEREST MARGIN 5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 1012 2Q12 3Q12 aquz MSCBTFC Peers FINANCIAL (BT CORPORATION 32
Slide 33: Operating Efficiency Ratio - QTD
OPERATING EFFICIENCY RATIO - QTD 33 See endnotes (10)
Slide 34: [LOGO]
[LOGO]
Slide 35: Legacy Loan Portfolio Mix
LEGACY LOAN PORTFOLIO MIX 36 4.4 % 5 YR CAGR (2007 – 2012) Organic Loan Growth In Millions See endnotes (12)
Slide 36: Growth – Core & Total Deposits
GROWTH – CORE & TOTAL DEPOSITS 37 In Millions Growth – Core Deposits* 35.1% 5 YR CAGR (2007 – 2012) Growth – Total Deposits 36.9% 5 YR CAGR (2007 – 2012) Acquired Deposits $3,004 $2,350 $3,254 See endnotes (13) $4,298 $1,046 $1,874 $2,350 $3,235 $1,928
Slide 37: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 38: Index – Supplemental Information
INDEX – SUPPLEMENTAL INFORMATION Largest Relationships 40 ALLL Trend 41 Credit Trends 42 Investment Portfolio 43 Fee Income by Type 44 CD Re-pricing 45 Market Demographics 46 Analyst Recommendations 51 39
Slide 39: Largest Credit Relationships (Non-Acquired)
LARGEST CREDIT RELATIONSHIPS (NON-ACQUIRED) 40 See endnotes (14)
Slide 40: ALLL Trend Data (Non-Acquired Loans)
ALLL TREND DATA (NON-ACQUIRED LOANS) 41 2.00 % 1.91 % See endnotes (15) 1.84 % 1.73 % 1.45% 1.55% 1.70% 1.90% 2.07% 2.07% 2.05% 2.00% 2.00% 2.00% 1.95%
Slide 41: Investment Portfolio Mix
INVESTMENT PORTFOLIO MIX 43 Fixed Income Investment Portfolio (AFS & HTM) As of 12/31/12 Tax Equivalent Yield 3.19% Weighted Average Life 3.90 years Modified Duration 3.51 Total Carrying Value(16) $ 549,944 See endnotes (16) State and Municipal - HTM 3% State and Municipal - AFS 27% U.S. Agency/GSE
Slide 42: Fee Income by Type
FEE INCOME BY TYPE 44 26% of Operating Income $ 1.6 Billion in Assets Under Management Focused on growing Wealth Management Checking Accounts Secondary Mortgage 2012 YTD : $61.9 Million See endnotes (17)
Slide 43: Continued CD Repricing Opportunities
CONTINUED CD REPRICING OPPORTUNITIES 45 Average CD Price in past 30 days ~ 17 BPS Upcoming Maturities (in millions) Amount Yield 1st Quarter 2013 228.1 $ 0.43% 2nd Quarter 2013 193.1 $ 0.34% 3rd Quarter 2013 116.3 $ 0.44%
Slide 44: Northeast Georgia Deposit Market Share
NORTHEAST GEORGIA DEPOSIT MARKET SHARE 46 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 45: Unemployment Data
UNEMPLOYMENT DATA nop Oo a Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 ‘National = —NorthCarolina © —-SouthCarolina =—Georgia FINANCIAL CORPORATION’ 41
Slide 46: S.C. Real Estate Markets
S.C. REAL ESTATE MARKETS 48 See endnotes (20) Beaufort 986 1,103 11.9% 177.5 175 -1.2% 201 198 -1.5% Charleston Trident 9,275 10,496 13.2% 182 190 4.4% 111 100 -9.7% Coastal Carolinas 7,627 8,656 13.5% 139.9 139 -0.6% 181 173 -4.4% Gr. Columbia 6,462 7,587 17.4% 143.9 138 -4.2% 119 116 -3.0% Gr. Gre
Slide 47: Demographic Highlights in Key Markets
DEMOGRAPHIC HIGHLIGHTS IN KEY MARKETS 49 See endnotes (19)
Slide 48: Median Household Income
$84,000-$120,000 $70,001-84,000 $41,000-$70,000 (Median) $27,001-$41,000 $8,889-$27,000 MEDIAN HOUSEHOLD INCOME 50 See endnotes (19) Demographic Data as of 12/31/2011
Slide 49: Analyst Recommendations
ANALYST RECOMMENDATIONS 51 ANALYST First Quarter 2013 RECOMMENDATION FIG Partners OUTPERFORM Keefe, Bruyette & Woods OUTPERFORM Sterne Agee OUTPERFORM Raymond James STRONG BUY BB&T Capital Markets BUY SunTrust Robinson Humphrey BUY Wunderlich Securities BUY Sandler O’Neill + Partners HOLD As of 2/20
Slide 50: 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 52 520 Gervais Street Columbia, South Carolina 29201 800-277-2175 www.scbtonline.com
Slide 51: Endnotes
ENDNOTES Source: Source: SNL Financial. Pricing data as of 2/21/13. 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 Caro