SCBT Reports Record Operating Results for 4Q 2012 of $0.72 per share; Declares Quarterly Cash Dividend

  SCBT Reports Record Operating Results for 4Q 2012 of $0.72 per share;   Declares Quarterly Cash Dividend  Business Wire  COLUMBIA, S.C. -- January 31, 2013  SCBT Financial Corporation (NASDAQ: SCBT), the holding company for SCBT, today released its unaudited results of operations and other financial information for the three-month period and year ended December 31, 2012. Highlights during 2012 include:    *Net income of $5.9 million, or $0.38 diluted EPS, which includes     merger-related charges and securities gains, in 4Q 2012 compared to $9.1     million, or $0.60 diluted EPS in 3Q 2012 and $4.8 million, or $0.35     diluted EPS, in 4Q 2011;   *Diluted EPS for 2012 was up 23.8% compared to 2011, operating diluted EPS     for 2012 was up 137.1% compared to 2011;   *Operating earnings, which excludes merger-related expense and securities     gains or losses, of $11.1 million, or $0.72 diluted EPS in 4Q 2012     compared to $9.4 million, or $0.63 diluted EPS in 3Q 2012 and $5.2     million, or $0.37 diluted EPS in 4Q 2011;   *Completed the merger of The Savannah Bancorp, Inc. (Savannah) during the     quarter;   *Core deposit growth, excluding CDs and the Peoples and Savannah     acquisitions, up $64.1 million in the 4Q 2012; 10.5% annualized growth for     4Q 2012;   *Non-interest bearing deposits are approaching $1.0 billion with the     acquisition of Savannah;   *Operating return on average assets was 0.98% annualized in 4Q 2012     compared to 0.87% in 3Q 2012 and 0.52% in 4Q 2011;   *Operating efficiency ratio was 62.8% annualized in 4Q 2012 compared to     59.0% in 3Q 2012 and compared to 62.4% in 4Q 2011;   *Net charge-offs of non-acquired loans decreased to 0.64% annualized for 4Q     ^  2012, compared to 0.85% annualized for 3Q 2012 and 1.08% annualized for     4Q 2011;   *Non-performing Assets (NPAs): 1.58% of total assets for 4Q 2012 compared     to 1.89% for 3Q 2012 and 2.44% for 4Q 2011; 3.13% of loans and repossessed     assets, excluding acquired assets, for 4Q 2012 compared to 3.22% for 3Q     2012 and 3.82% for 4Q 2011; and   *Legacy loan growth for the 4Q 2012 was $53.7 million or 8.5% annualized     and for the year legacy loan growth was $100.4 million or 4.1%.  Quarterly Cash Dividend  The Board of Directors of SCBT has declared a quarterly cash dividend of $0.18 per share payable on its common stock. This per share amount is equal to the dividend paid in the immediately preceding quarter and is $0.01 per share, or 5.9%, higher than a year ago. The dividend will be payable on February 22, 2013 to shareholders of record as of February 15, 2013.  Fourth Quarter 2012 vs. 2011 Results of Operations  Please refer to the accompanying tables for detailed comparative data on results of operations and financial results.  The Company reported consolidated net income of $5.9 million, or $0.38 per diluted share, for the three months ended December 31, 2012 compared to consolidated net income of $4.8 million, or $0.35 per diluted share, for the fourth quarter of 2011. This $1.1 million increase was the net result of improved net interest income, reduced provision for loan losses, and increases in all categories of customer-oriented noninterest income. The increases were offset by non-interest expense increases which are primarily due to merger-related expenses from the Savannah acquisition and salary and benefits expense increases.  “The performance of SCBT in 2012 was very satisfying. Our total shareholder return during the year was 41%, which included an increased quarterly dividend of 5.9%,” said Robert R. Hill, Jr., president and CEO. “While we certainly are pleased with the stock performance, we are most pleased with the strong operating fundamentals and opportunities that are driving this performance. It was a year with substantially improved credit quality, a stable margin, very strong fee income, record operating earnings, and strong organic and merger growth within our balance sheet, which totaled 31.8%. One of the most revealing strengths of our company is our strong balance sheet anchored by almost $1.0 billion in noninterest bearing deposits. Our organic growth, significant new customer growth, and merging with banks that have a strong legacy in their markets and strong customer base, are the reasons for success in this area. Our earnings per share increased 23.8% for the year and operating earnings, which excludes merger related expenses, increased to a record $2.49 per share, an increase of 137%. Even with this performance, our operating return on average assets was 0.98% and operating return on average equity was 9.8%. We believe that both measures have room to improve, and we have the momentum to realize this increase in the coming quarters.”  Asset Quality  During the fourth quarter of 2012, SCBT experienced significant improvement in asset quality, excluding acquired loans and OREO, as classified assets declined by more than $14.3 million, or 36.4% annualized from the third quarter of 2012. Loans past due 30-89 days declined by $2.1 million from the third quarter to $7.2 million. We continue to see meaningful improvement in the trailing average of historical loan losses as the high charge-off quarters from prior periods are being replaced with much lower current loss rates. Nonperforming assets to total assets declined to 1.58% primarily due to the increase in assets from the Savannah acquisition. NPAs, excluding acquired NPAs, declined modestly by $650,000 from the third quarter level. Improvements in asset quality continue as we experience improvement in housing starts (permits), home sales, and lower unemployment rates.  At December 31, 2012, the allowance for non-acquired loan losses was $44.4 million, or 1.73% of non-acquired period-end loans. The current allowance for loan losses provides .72 times coverage of period-end non-acquired nonperforming loans. Net charge-offs within the non-acquired loan portfolio decreased to $4.1 million, or 0.64% annualized from $5.3 million, or 0.85% annualized in the third quarter of 2012, and from $6.7 million, or 1.08% annualized in the fourth quarter of 2011.  Non-acquired other real estate owned (“OREO”) decreased by $3.4 million from the 3^rd quarter of 2012 and increased by $1.0 million from the fourth quarter of 2011. During the fourth quarter, the Company wrote down 10 properties by a total of $765,000 compared to 12 properties and $2.1 million in write downs in the third quarter of 2012, and 26 properties and $2.3 million in write downs during the fourth quarter of 2011.  Net Interest Income and Margin  Non-taxable equivalent net interest income was $47.9 million for the fourth quarter of 2012, a $1.0 million increase from the third quarter, resulting from the following:  1. Higher balance of average acquired loans (up $81.5 million) and along with credit releases totaling $6.6 million resulted in an increase of $650,000 of interest income on acquired loans; and  2. A decrease of $275,000 in the company’s overall cost of funds.  Taxable-equivalent net interest margin increased 10 basis points from the fourth quarter of 2011 and decreased 15 basis points from the third quarter of 2012 to 4.88%. The average yield on interest earning assets decreased 17 basis points while the average rate on interest-bearing liabilities declined 24 basis points from the fourth quarter of 2011. During the fourth quarter of 2012, average total assets increased to $4.5 billion and average earning assets increased to almost $4.0 billion. This growth in average total assets was supported by growth in average total deposits to $3.7 billion. At December 31, 2012, non-interest bearing deposits were nearly $1.0 billion.  Noninterest Income and Expense  Noninterest income was $10.9 million for the fourth quarter of 2012 compared to $9.7 million for the fourth quarter of 2011, an increase of $1.2 million, or 12.8%, due primarily to mortgage banking income which increased $2.3 million due to the impact of continued low interest rate environment on the home mortgage market. All other noninterest income categories (excluding negative accretion on the indemnification asset and securities gains (losses)) were up a total $2.3 million. The negative accretion on the indemnification asset related to all FDIC-assisted transactions offset these increases by $3.5 million. The negative accretion results from the reduction of expected cash flows of this asset related to certain pools of acquired loans which had improved estimated cash flows throughout the year.  Compared to the third quarter of 2012, noninterest income was up a total of $1.6 million, excluding securities gains (losses). This increase was led by the following: (1) mortgage banking income increased $688,000, for the reason noted above; (2) trust and investment services income was up $167,000; and (3) service charges on deposit accounts were up $144,000. Other income was up $436,000, due primarily to higher recoveries related to acquired loans.  Noninterest expense was $48.1 million in the fourth quarter of 2012, a 31.7% or $11.6 million increase from $36.5 million in the fourth quarter of 2011. This increase was the result of increased merger- related charges incurred for the Savannah acquisition of $7.1 million, and an increase in salaries and benefits which increased $4.4 million, or 26.1%. The increase in salary and employee benefits resulted primarily from the addition of new FTEs largely related to the two acquisitions completed during the year.  Compared to the third quarter of 2012, noninterest expense increased by $10.1 million. The increase resulted from merger-related expenses, which increased due to the Savannah acquisition by $7.0 million; and increased salary and benefits of $2.7 million. The increase in salary and benefits primarily resulted from new FTEs (hired in support areas), incremental addition from the Savannah acquisition, increases in incentive accruals, and increase in the match of 401(k) beginning September 1, 2012. OREO expense and loan related costs declined $730,000, which was mostly offset by an increase in other expenses of $670,000, which included higher property taxes, higher operational charge offs, secondary mortgage repurchase cost, and higher appraisal cost.  Balance Sheet and Capital  At the end of the year, SCBT’s total assets were $5.1 billion, up from $4.3 billion at September 30, 2012, and from $3.9 billion at December 31, 2011. The increase during the quarter is the result of the Savannah acquisition and $53.7 million in legacy loan growth. Since the end of 2011, The Company’s balance sheet has grown by more than 31%. Asset growth is evident in every line item, except OREO and FDIC receivable for loss share agreements, given the two acquisitions. During the fourth quarter of 2012, the company executed an auction of approximately 175 properties in north Georgia. With the sale of 970 OREO assets during 2012, our legacy and acquired OREO balance declined from $83.9 million last year to $66.5 million at December 31, 2012. The inventory of these assets has declined to 432 properties from 900 properties at December 31, 2011. In addition, the balance in the FDIC receivable account has decreased by $116.5 million from December 31, 2011, to $146.2 million at December 31, 2012. We expect to collect approximately $14.0 million during the first quarter of 2013 for claims filed through December 31, 2012. During the quarter and with the acquisition of Savannah, the Company moved to a deferred tax asset position of more than $30.0 million compared to last quarter and year end 2011 when we were in a deferred tax liability position.  The Company’s book value per share increased to $29.97 per share at December 31, 2012, compared to $28.71 at September 30, 2012. Capital increased by $73.6 million due primarily to the issuance of 1.802 million shares of common stock in the acquisition of Savannah which totaled $68.8 million. Net income of $5.9 million was offset by $2.7 million in dividends paid to our shareholders, and other capital activity of $1.6 million increased shareholders’ equity. Tangible book value (“TBV”) per share decreased by $0.92 per share to $22.54 at December 31, 2012 from $23.46 at September 30, 2012 due to the Savannah acquisition.  The total risk-based capital ratio is estimated to have declined by 130 basis points from the third quarter of 2012 to 13.9%, due primarily to the addition of the Savannah acquisition and the increase in total risk-weighted assets relative to the increase in total risk-based capital. Tier 1 leverage ratio increased to 9.8% from 9.3% at September 30, 2012. The increase for the quarter was the result of closing the Savannah acquisition, and only incrementally increasing total average assets while capital increased by $73.6 million. The capital ratio will decline in the first quarter of 2013 as the average balance sheet will increase for the Savannah acquisition. The Company’s capital positions remain “well-capitalized” by all measures at December 31, 2012.  “During 2012, we closed on two strategic acquisitions which have grown our asset base to more than $5.1 billion. Our net interest margin remains strong at 4.88% compared to 5.03% last quarter. OREO costs remain elevated, but declined this quarter by $730,000 compared to last quarter,” said John C. Pollok, CFO and COO. “We expect to have the conversion of the Savannah branches fully integrated onto our operating system by the end of the first quarter of 2013.”  SCBT Financial Corporation (the “Company”), Columbia, South Carolina is a registered bank holding company incorporated under the laws of South Carolina. The Company consists of SCBT, the Bank and the following divisions: NCBT, CBT, The Savannah Bank, Bryan Bank & Trust, and Minis & Co., Inc. Providing financial services for over 78 years, SCBT Financial Corporation operates 84 locations in 19 South Carolina counties, 10 North Georgia counties, 2 Coastal Georgia counties and Mecklenburg County in North Carolina. SCBT Financial Corporation has assets of approximately $5.1 billion and its stock is traded under the symbol SCBT in the NASDAQ Global Select Market. More information can be found at www.SCBTonline.com.  SCBT Financial Corporation will hold a conference call on January 31st at 11 a.m. Eastern Time where management will review earnings and performance trends. Callers wishing to participate may call toll-free by dialing 866-652-5200. The number for international participants is 412-317-6060. The conference ID number is 10021959. Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com. A replay will be available beginning January 31st by 2:00 pm Eastern Time until 9:00 a.m. on February 15th. To listen to the replay, dial 877-344-7529 or 412-317-0088. The passcode is 10021959.  Non-GAAP Measures  Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures. Management believes that these non-GAAP measures provide additional useful information. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.  Cautionary Statement Regarding 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. Forward looking statements generally include words such as “expects,” “projects,” “anticipates,” “believes,” “intends,” “estimates,” “strategy,” “plan,” “potential,” “possible” and other similar expressions. SCBT Financial Corporation (“SCBT”) cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from anticipated results. Such risks and uncertainties, include, among others, the following possibilities: (1) credit risk associated with an obligor's failure to meet the terms of any contract with the bank or otherwise fail to perform as agreed; (2) interest risk involving the effect of a change in interest rates on both the bank's earnings and the market value of the portfolio equity; (3) liquidity risk affecting the bank's ability to meet its obligations when they come due; (4) price risk focusing on changes in market factors that may affect the value of traded instruments in "mark-to-market" portfolios; (5) transaction risk arising from problems with service or product delivery; (6) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (7) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (8) reputation risk that adversely affects earnings or capital arising from negative public opinion; (9) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (10) economic downturn risk resulting in deterioration in the credit markets; (11) greater than expected noninterest expenses; (12) excessive loan losses; (13) failure to realize synergies and other financial benefits from, and to limit liabilities associates with, mergers and acquisitions, including mergers with Peoples Bancorporation (“Peoples”) and The Savannah Bancorp, Inc. (“Savannah”), within the expected time frame; (14) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the integration of Peoples and Savannah, including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters; (15) inability to identify and successfully negotiate and complete additional combinations with potential merger or acquisition partners or to successfully integrate such businesses into SCBT, including the ability to realize the benefits and cost savings from, and limit any unexpected liabilities associated with, any such business combinations; (16) the risks of fluctuations in market prices for SCBT stock that may or may not reflect economic condition or performance of SCBT; (17) the payment of dividends on SCBT is subject to regulatory supervision as well as the discretion of the SCBT board of directors; (18) risks and uncertainties disclosed in the section titled “Risk Factors” in the SCBT Annual Report on Form 10-K or disclosed in other reports filed from time to time by SCBT with the SEC; and (19) other factors, which could cause actual results to differ materially from future results expressed or implied by such forward looking statements.  SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                                                                                                                                                                          Fourth                     Three Months Ended                                                                   Quarter     Twelve Months Ended                YTD                     December 31,     September 30,    June 30,         March 31,        December 31,     2012 -      December 31,                       2012 -                                                                                                          2011                                           2011 EARNINGS SUMMARY                                                                                                                                        % (non tax            2012             2012             2012             2012             2011             % Change    2012            2011              Change equivalent) Interest income     $ 50,263         $ 49,535         $ 45,470         $ 42,220         $ 43,825         14.7   %    $ 187,488        $ 171,718         9.2   % Interest expense     2,351          2,625          2,936          3,182          3,900         -39.7  %     11,094        20,266         -45.3 % Net interest income   47,912           46,910           42,534           39,038           39,925         20.0   %      176,394          151,452         16.5  % Provision for loan    2,211            4,044            4,641            2,723            7,057          -68.7  %      13,619           30,236          -55.0 % losses (1) Noninterest income    10,900           9,166            11,744           9,473            9,663          12.8   %      41,283           55,119          -25.1 % Noninterest expense  48,139         38,031         37,509         35,219         36,550        31.7   %     158,898       142,978        11.1  % Income before provision for         8,462            14,001           12,128           10,569           5,981          41.5   %      45,160           33,357          35.4  % income taxes Provision for        2,552          4,938          4,097          3,541          1,154         121.1  %     15,128        10,762         40.6  % income taxes Net income          $ 5,910         $ 9,063         $ 8,031         $ 7,028         $ 4,826         22.5   %    $ 30,032        $ 22,595         32.9  %                                                                                                                                                          Basic weighted-average      15,320,472       14,920,423       14,650,914       13,882,801       13,845,444     10.7   %      14,698,236       13,676,743      7.5   % common shares Diluted weighted-average      15,446,778       15,043,067       14,733,325       13,951,290       13,914,814     11.0   %      14,795,722       13,750,973      7.6   % common shares                                                                                                                                                          Earnings per share  $ 0.39           $ 0.61           $ 0.55           $ 0.51           $ 0.35           11.4   %    $ 2.06           $ 1.65            24.8  % - Basic Earnings per share    0.38             0.60             0.55             0.50             0.35           8.6    %      2.03             1.64            23.8  % - Diluted                                                                                                                                                          Cash dividends      $ 0.18           $ 0.17           $ 0.17           $ 0.17           $ 0.17           5.9    %    $ 0.69           $ 0.68            1.5   % declared per share Dividend payout       46.06      %     28.34      %     31.93      %     34.00      %     49.39      %   -6.8   %      34.11      %     42.11      %    -19.0 % ratio (2)                                                                                                                                                          Operating Earnings (non-GAAP) (3) Net income (GAAP)   $ 5,910          $ 9,063          $ 8,031          $ 7,028          $ 4,826          22.5   %    $ 30,032         $ 22,595          32.9  % Gains on acquisitions, net     --               --               --               --               --                           --               (10,226    ) of tax Securities (gains)    (89        )     --               (40        )     --               20                           (130       )     (141       ) losses, net of tax Merger and conversion related   5,274          357            1,323          64             327           1512.7 %     7,018          2,217       expense, net of tax Net operating earnings (loss)     $ 11,095        $ 9,420         $ 9,314         $ 7,092         $ 5,173         114.5  %    $ 36,920        $ 14,445         155.6 % (non-GAAP)                                                                                                                                                          Operating earnings (loss) per share -  $ 0.72           $ 0.63           $ 0.64           $ 0.51           $ 0.37           94.6   %    $ 2.50           $ 1.06            135.8 % Basic Operating earnings (loss) per share -    0.72             0.63             0.63             0.51             0.37           94.6   %      2.49             1.05            137.1 % Diluted                                                                                                                                                                                                                                                                   Fourth                     AVERAGE for Quarter Ended                                                            Quarter     AVERAGE for Twelve Months          YTD                     December 31,     September 30,    June 30,         March 31,        December 31,     2012 -      December 31,     December 31,      2012 -                                                                                                          2011                                           2011 BALANCE SHEET       2012             2012             2012             2012             2011             % Change    2012             2011              % HIGHLIGHTS                                                                                                                                              Change Loans held for sale $ 60,183         $ 56,300         $ 29,604         $ 34,073         $ 52,743         14.1   %    $ 45,112         $ 26,760          68.6  % Acquired loans, net of allowance for      582,726          501,214          484,084          357,668          386,713        50.7   %      481,754          379,678         26.9  % acquired loan losses Non-acquired loans    2,528,753        2,497,478        2,456,069        2,456,080        2,467,363      2.5    %      2,484,751        2,397,821       3.6   % Total loans (1)       3,111,479        2,998,692        2,940,153        2,813,748        2,854,076      9.0    %      2,966,505        2,777,499       6.8   % FDIC receivable for loss share            162,580          194,116          219,183          246,556          267,904        -39.3  %      205,460          278,164         -26.1 % agreements Total investment      510,434          501,816          468,334          324,473          317,939        60.5   %      451,563          277,192         62.9  % securities Intangible assets     87,372           79,857           79,583           74,089           74,601         17.1   %      80,204           74,425          7.8   % Earning assets        3,972,280        3,766,889        3,703,552        3,371,704        3,346,444      18.7   %      3,704,514        3,283,741       12.8  % Total assets          4,517,076        4,331,436        4,295,911        3,957,918        3,947,773      14.4   %      4,276,263        3,904,363       9.5   % Noninterest-bearing   886,240          813,394          795,867          700,438          675,998        31.1   %      799,263          615,957         29.8  % deposits Interest-bearing      2,853,253        2,800,446        2,808,884        2,570,595        2,614,304      9.1    %      2,758,670        2,631,556       4.8   % deposits Total deposits        3,739,493        3,613,840        3,604,751        3,271,033        3,290,302      13.7   %      3,557,933        3,247,513       9.6   % Federal funds purchased and         247,970          223,844          215,678          229,099          194,427        27.5   %      229,185          210,098         9.1   % repurchase agreements Other borrowings      47,555           45,908           46,203           46,480           46,774         1.7    %      46,537           47,239          -1.5  % Shareholders'         450,446          429,183          415,952          383,377          382,909        17.6   %      419,849          370,116         13.4  % equity                                                                                                                                                                 SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                     Fourth                     ENDING Balance                                                                       Quarter                     December 31,     September 30,    June 30,         March 31,        December 31,     2012 -                                                                                                          2011 BALANCE SHEET       2012             2012             2012             2012             2011             % Change HIGHLIGHTS Loans held for sale $ 65,279         $ 71,585         $ 42,525         $ 34,706         $ 45,809         42.5   % Acquired loans        1,074,742        520,991          560,058          369,144          402,201        167.2  % Non-acquired loans    2,571,003        2,517,352        2,481,251        2,437,314        2,470,565      4.1    % Total loans (1)       3,645,745        3,038,343        3,041,309        2,806,458        2,872,766      26.9   % FDIC receivable for loss share            146,171          174,321          200,569          231,331          262,651        -44.3  % agreements Total investment      560,091          500,587          511,138          357,448          324,056        72.8   % securities Intangible assets     125,801          79,391           79,971           73,926           74,426         69.0   % Allowance for acquired loan         (32,132    )     (31,138    )     (35,813    )     (34,355    )     (31,620    )   1.6    % losses Allowance for non-acquired loan     (44,378    )     (46,439    )     (47,269    )     (47,607    )     (49,367    )   -10.1  % losses (1) Premises and          115,583          105,579          106,458          93,209           94,250         22.6   % equipment Total assets          5,136,446        4,325,232        4,373,269        4,046,343        3,896,557      31.8   % Noninterest-bearing   981,963          818,633          806,235          757,777          658,454        49.1   % deposits Interest-bearing      3,316,397        2,770,665        2,854,737        2,598,860        2,596,018      27.7   % deposits Total deposits        4,298,360        3,589,298        3,660,972        3,356,637        3,254,472      32.1   % Federal funds purchased and         238,621          226,330          220,264          235,412          180,436        32.2   % repurchase agreements Other borrowings      54,897           45,807           46,105           46,397           46,683         17.6   % Total liabilities     4,628,897        3,891,308        3,948,363        3,659,836        3,514,777      31.7   % Shareholders'         507,549          433,924          424,906          386,507          381,780        32.9   % equity                                                                                                           Common shares issued and            16,937,464       15,114,185       15,085,991       14,052,177       14,039,422     20.6   % outstanding                                                                                                                                                                                                                    Fourth                                                                                                          Quarter                     December 31,     September 30,    June 30,         March 31,        December 31,     2012 -                                                                                                          2011 NONPERFORMING ASSETS (ENDING      2012             2012             2012             2012             2011             % Change BALANCE) Non-acquired Non-acquired        $ 48,387         $ 46,295         $ 47,940         $ 59,278         $ 64,170         -24.6  % nonaccrual loans Restructured loans    13,151           12,882           9,530            10,578           11,807         11.4   % Other real estate owned ("OREO") not covered under FDIC loss share       19,069           22,424           25,518           21,381           18,022         5.8    % agreements Accruing loans past   500              156              137              130              926            -46.0  % due 90 days or more Other nonperforming  --             --             --             24             24            -100.0 % assets Total non-acquired nonperforming        81,107         81,757         83,125         91,391         94,949        -14.6  % assets Acquired (7) Acquired nonaccrual   --               --               --               --               -- loans OREO covered under FDIC loss share       34,257           47,063           53,146           61,788           65,849         -48.0  % agreements OREO not covered under FDIC loss       13,179           5,059            5,745            --               -- share agreements Other nonperforming  44             57             73             215            251         assets Total acquired nonperforming        47,480         52,179         58,964         62,003         66,100        -28.2  % assets Total nonperforming $ 128,587       $ 133,936       $ 142,089       $ 153,394       $ 161,049       -20.2  % assets                                                                                                           Excluding Acquired Assets Total nonperforming assets as a percentage of total non-acquired loans and            3.13       %    3.22       %    3.32       %    3.72       %    3.82       % repossessed assets (1) (4) Total nonperforming assets as a percentage of total assets (5)  1.58       %    1.89       %    1.90       %    2.26       %    2.44       % NPLs as a percentage of        2.41       %    2.36       %    2.32       %    2.87       %    3.11       % period end non-acquired loans Including Acquired Assets Total nonperforming assets as a percentage of total loans and repossessed assets   3.48       %    4.31       %    4.55       %    5.31       %    5.45       % (1) (4) Total nonperforming assets as a percentage of total assets      2.50       %    3.10       %    3.25       %    3.79       %    4.13       % NPLs as a percentage of        1.70       %    1.95       %    1.89       %    2.49       %    2.68       % period end loans                                                                                                           OTHER ASSET QUALITY INFORMATION Classified Assets (Ending Balance) (11) Classified loans    $ 124,133        $ 135,095        $ 135,099        $ 156,118        $ 166,383        -25.4  % OREO and other nonperforming        19,069         22,424         25,518         21,405         18,046        5.7    % assets Total classified    $ 143,202       $ 157,519       $ 160,617       $ 177,523       $ 184,429       -22.4  % assets                                                                                                           Tier 1 capital and non-acquired        $ 477,686       $ 444,200       $ 436,964       $ 406,070       $ 402,470       18.7   % allowance for loan losses Classified assets as a percentage of Tier 1 capital and non-acquired allowance for loan   29.98      %    35.46      %    36.76      %    43.72      %    45.82      % losses                                                                                                           Non-acquired Loans  $ 7,189         $ 9,270         $ 10,464        $ 7,290         $ 9,235         -22.2  % 30-89 Day Past Due                                                                                                                   SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                            Fourth                                                  Quarter Ended                                                                   Quarter      Twelve Months Ended         YTD                   December 31,    September 30,   June 30,        March 31,       December 31,    2012 -       December      December      2012 -                                                                                                   2011         31,           31,           2011 ALLOWANCE FOR                                                                                                                              % LOAN LOSSES       2012            2012            2012            2012            2011            % Change     2012          2011          Change (1) Non-acquired Loans: Balance at beginning of      $ 46,439        $ 47,269        $ 47,607        $ 49,367        $ 49,110        -5.4    %    $ 49,367      $ 47,512      3.9   % period Loans charged       (4,291    )     (5,506    )     (5,114    )     (5,344    )     (6,846    )   -37.3   %      (20,255 )     (28,047 )   -27.8 % off Overdrafts          (446      )     (434      )     (441      )     (354      )     (413      )   8.0     %      (1,675  )     (1,163  )   44.0  % charged off Loan                550             481             700             1,424           409           34.5    %      3,155         1,888       67.1  % recoveries Overdraft          131           129           125           216           138          -5.1    %     601         522        15.1  % recoveries Net                 (4,056    )     (5,330    )     (4,730    )     (4,058    )     (6,712    )   -39.6   %      (18,174 )     (26,800 )   -32.2 % charge-offs Provision for loan losses on                 1,995         4,500         4,392         2,298         6,969        -71.4   %     13,185      28,655     -54.0 % non-acquired loans Balance at end of period,            44,378        46,439        47,269        47,607        49,367       -10.1   %     44,378      49,367     -10.1 % non-acquired loans Acquired Loans: Balance at beginning of        31,138          35,812          34,355          31,620          29,870                       31,620        -- period Loans charged       --              --              --              --              --                           --            -- off Loan               --            --            --            --            --                         --          --       recoveries Net                 --              --              --              --              --                           --            -- charge-offs Provision for loan losses on acquired loans: Provision for loan losses before benefit attributable to FDIC loss share               994             (4,674    )     1,457           2,735           1,750                        512           31,620 agreements Benefit attributable to FDIC loss       (778      )    4,218         (1,208    )    (2,310    )    (1,663    )                 (78     )    (30,039 ) share agreements Net provision for loan losses on          216           (456      )    249           425           87                         434         1,581    acquired loans Provision for loan losses recorded through the FDIC loss share         778           (4,218    )    1,208         2,310         1,663                      78          30,039   receivable Balance at end of period,            32,132        31,138        35,812        34,355        31,620                     32,132      31,620   acquired loans Balance at end of period, total     $ 76,510       $ 77,577       $ 83,081       $ 81,962       $ 80,987       -5.5    %    $ 76,510     $ 80,987     -5.5  % allowance for loan losses                                                                                                                                             Total provision for loan losses       $ 2,211        $ 4,044        $ 4,641        $ 2,723        $ 7,056                     $ 13,620     $ 30,236   charged to operations Allowance for non-acquired loan losses as a percentage of non-acquired       1.73      %    1.84      %    1.91      %    1.95      %    2.00      %                 1.73    %    2.00    % loans (1) Allowance for loan losses as a percentage of total loans        2.10      %    2.55      %    2.73      %    2.92      %    2.82      %                 2.10    %    2.82    % (1) Allowance for non-acquired loan losses as a percentage of non-acquired       71.53     %    78.27     %    82.05     %    68.02     %    64.19     %                 71.53   %    64.19   % nonperforming loans Net charge-offs on non-acquired loans as a percentage of average non-acquired loans              0.64      %    0.85      %    0.77      %    0.66      %    1.08      %                 0.73    %    1.12    % (annualized) (1)                                                                                                                                                                                                                                               Fourth                                                                                                   Quarter                   December 31,    September 30,   June 30,        March 31,       December 31,    2012 -                                                                                                   2011 LOAN PORTFOLIO         2012            2012            2012            2012            2011            % Change (ENDING balance) (1) Acquired          $ 282,682       $ 309,034       $ 332,874       $ 363,050       $ 394,495       172.4   % covered loans Acquired non-covered         792,060         211,957         227,184         6,094           7,706         10178.5 % loans Non-acquired loans: Commercial non-owner occupied real estate: Construction and land            273,420         273,606         279,519         294,865         310,845       -12.0   % development Commercial non-owner          290,071       278,935       284,147       284,044       299,698      -3.2    % occupied Total commercial non-owner           563,491         552,541         563,666         578,909         610,543       -7.7    % occupied real estate Consumer real estate: Consumer owner               434,503         430,825         420,298         407,697         391,529       11.0    % occupied Home equity        255,284       255,677       257,061       258,054       264,986      -3.7    % loans Total consumer real       689,787         686,502         677,359         665,751         656,515       5.1     % estate Commercial owner               784,152         787,623         763,338         744,441         742,890       5.6     % occupied real estate Commercial and                 279,763         245,285         228,010         216,083         220,454       26.9    % industrial Other income producing           133,713         131,832         132,193         130,177         140,693       -5.0    % property Consumer non        86,934          86,729          87,290          85,350          85,342        1.9     % real estate Other              33,163        26,840        29,395        16,603        14,128       134.7   % Total non-acquired       2,571,003     2,517,352     2,481,251     2,437,314     2,470,565    4.1     % loans Total loans (net of           $ 3,645,745    $ 3,038,343    $ 3,041,309    $ 2,806,458    $ 2,872,766    26.9    % unearned income) (1)                                                                                                                                             Loans held        $ 65,279       $ 71,585       $ 42,525       $ 34,706       $ 45,809       42.5    % for sale                                                                                                                                              SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                                                                                                                                                                                           Quarter Ended                                                                       Twelve Months Ended                    December 31,   September      June 30,       March 31,      December 31,            December   December                                   30,                                                                  31,        31, SELECTED RATIOS    2012           2012           2012           2012           2011                    2012       2011                                                                                                                                 Return on average assets              0.52%         0.83%         0.75%         0.71%         0.49%                  0.70%     0.58% (annualized)                                                                                                                                 Operating return on average assets   0.98%         0.87%         0.88%         0.72%         0.52%                  0.86%     0.37% (annualized) (non-GAAP)(3)                                                                                                                                 Return on average equity              5.22%         8.40%         7.77%         7.37%         5.00%                  7.15%     6.10% (annualized)                                                                                                                                 Operating return on average equity   9.80%         8.73%         9.05%         7.44%         5.34%                  8.79%     3.90% (annualized) (non-GAAP)(3)                                                                                                                                 Return on average tangible equity     6.91%         10.74%        9.92%         9.57%         6.76%                  9.27%     8.10% (annualized) (non-GAAP) (10)                                                                                                                                 Net interest margin (tax         4.88%         5.03%         4.69%         4.70%         4.78%                  4.83%     4.66% equivalent)                                                                                                                                 Efficiency ratio    80.95%        66.91%        68.34%        72.02%        73.09%                 72.20%    68.77% (tax equivalent)                                                                                                                                 Operating efficiency ratio    62.84%        58.96%        60.84%        66.27%        62.43%                 62.10%    65.54% excluding OREO expense                                                                                                                                 Book value per     $ 29.97        $ 28.71        $ 28.17        $ 27.51        $ 27.19 common share                                                                                                                                 Tangible book value per common   $ 22.54        $ 23.46        $ 22.86        $ 22.24        $ 21.89 share (non-GAAP) (10)                                                                                                                                 Common shares issued and          16,937,464    15,114,185    15,085,991    14,052,177    14,039,422 outstanding                                                                                                                                 Equity-to-assets    9.88%         10.03%        9.72%         9.55%         9.80%                                                                                                                                 Tangible equity-to-tangible  7.62%         8.35%         8.03%         7.87%         8.04% assets (non-GAAP) (10)                                                                                                                                 Tier 1 leverage    9.8%            9.3%          9.2%          9.2%          9.1% (9)                                                                                                                                 Tier 1 risk-based  12.7%           14.0%         13.9%         14.5%         14.0% capital (9)                                                                                                                                 Total risk-based   13.9%           15.2%         15.1%         15.8%         15.3% capital (9)                                                                                                                                                                                                                                                                                    Quarter Ended                                                                       Twelve Months Ended                    December 31,   September      June 30,       March 31,      December 31,            December   December                                   30,                                                                  31,        31, RECONCILIATION OF  2012           2012           2012           2012           2011                    2012       2011 NON-GAAP TO GAAP                                                                                                                                 Pre-tax, Pre-provision Operating Earnings (6) Net income (GAAP)  $ 5,910        $ 9,063        $ 8,031        $ 7,028        $ 4,826        22.5%    $ 30,032   $ 22,595     32.9% Provision for loan   2,211          4,044          4,641          2,723          7,057        -68.7%     13,619     30,236     -55.0% losses (1) Provision for       2,552         4,938         4,097         3,541         1,154        121.1%    15,128   10,762     40.6% income taxes Pre-tax, pre-provision        10,673         18,045         16,769         13,292         13,037       -18.1%     58,779     63,593     -7.6% income Gains on             --             --             --             --             --                      --         (16,529) acquisitions Securities (gains)   (128)          --             (61)           --             25                      (189)      (208) losses Merger and conversion related  7,552         568           1,998         96            404                    10,214    3,198 expense Pre-tax, pre-provision      $ 18,097       $ 18,613       $ 18,706       $ 13,388       $ 13,466       34.4%    $ 68,804   $ 50,054     37.5% operating earnings (non-GAAP)                                                                                                                                 Operating efficiency ratio excluding OREO expense Operating efficiency ratio     62.84%         58.96%         60.84%         66.27%         62.43%                  62.10%     65.54% excluding OREO expense Effect to adjust for OREO and loan    5.41%          6.95%          3.86%          5.56%          9.85%                   5.48%      6.91% related expense Effect to adjust for Merger and      12.71%        1.00%         3.64%         0.19%         0.81%                  4.65%     1.53% conversion expenses Efficiency ratio    80.95%        66.91%        68.34%        72.02%        73.09%                 72.20%    68.77% (Tax Equivalent)                                                                                                                                 Operating Return of Average Assets(3) Operating return on average assets    0.98%          0.87%          0.88%          0.72%          0.52%                   0.86%      0.37% (non-GAAP) Effect to adjust for acquisition      0.00%          0.00%          0.00%          0.00%          0.00%                   0.00%      0.26% gains Effect to adjust for securities       0.01%          0.00%          0.00%          0.00%          0.00%                   0.00%      0.00% gains (losses) Effect to adjust for merger and      -0.47%        -0.04%        -0.13%        -0.01%        -0.03%                 -0.16%    -0.06% conversion related expenses Return on average   0.52%         0.83%         0.75%         0.71%         0.49%                  0.70%     0.58% assets (GAAP)                                                                                                                                 Operating Return of Average Equity(3) Operating return on average equity    9.80%          8.73%          9.05%          7.44%          5.34%                   8.79%      3.90% (non-GAAP) Effect to adjust for acquisition      0.00%          0.00%          0.00%          0.00%          0.00%                   0.00%      2.76% gains Effect to adjust for securities       0.08%          0.00%          0.04%          0.00%          -0.02%                  0.03%      0.04% gains (losses) Effect to adjust for merger and      -4.66%        -0.33%        -1.32%        -0.07%        -0.32%                 -1.67%    -0.60% conversion related expenses Return on average   5.22%         8.40%         7.77%         7.37%         5.00%                  7.15%     6.10% equity (GAAP)                                                                                                                                  SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                                                   Quarter Ended                                                                   Twelve Months Ended                       December 31,    September   June 30,     March 31,       December               December   December                                       30,                                      31,                    31,        31, RECONCILIATION OF NON-GAAP TO GAAP      2012            2012        2012         2012            2011                   2012       2011 (CONTINUED)                                                                                                                   Return on Average Tangible Equity (10) Return on average tangible equity         6.91      %     10.74  %     9.92  %     9.57      %     6.76   %             9.27   %   8.10   % (non-GAAP) Effect to adjust for intangible         -1.69     %    -2.34  %    -2.15 %    -2.20     %    -1.76  %             -2.12  %   -2.00  % assets Return on average      5.22      %    8.40   %    7.77  %    7.37      %    5.00   %             7.15   %   6.10   % equity (GAAP)                                                                                                                   Tangible Book Value Per Common Share (10) Tangible book value per common share      $ 22.54         $ 23.46     $  22.86     $ 22.24         $ 21.89 (non-GAAP) Effect to adjust for intangible         7.43          5.25       5.30      5.26          5.30    assets Book value per        $ 29.97        $ 28.71    $  28.17    $ 27.51        $ 27.19   common share (GAAP)                                                                                                                   Tangible Equity-to-Tangible Assets (10) Tangible equity-to-tangible      7.62      %     8.35   %     8.03  %     7.87      %     8.04   % assets (non-GAAP) Effect to adjust for intangible         2.26      %    1.68   %    1.69  %    1.68      %    1.76   % assets Equity-to-assets       9.88      %    10.03  %    9.72  %    9.55      %    9.80   % (GAAP)                                                                                                                                                                                                                                                           Three Months Ended                       December 31, 2012                        December 31, 2011                       Average         Interest    Average      Average         Interest    Average YIELD ANALYSIS        Balance         Earned/Paid Yield/Rate   Balance         Earned/Paid Yield/Rate                                                                                                                   Interest-Earning Assets: Federal funds sold, reverse repo, and     $ 290,180       $ 384          0.53  %     121,686       $ 143       0.47   % time deposits Investment securities              354,791         1,948        2.18  %     255,079         1,666     2.59   % (taxable) Investment securities              155,643         1,201        3.07  %     62,860          546       3.45   % (tax-exempt) Loans held for sale     60,183          492          3.25  %     52,743          494       3.72   % Acquired loans, net of allowance for        582,726         16,648       11.37 %     386,713         10,550    10.82  % acquired loan losses Non-acquired loans     2,528,753     29,590      4.66  %    2,467,363     30,426   4.89   % (1) Total interest-earning        3,972,276       50,263       5.03  %     3,346,444       43,825    5.20   % assets                                                                                                                   Noninterest-Earning Assets: Cash and due from       87,155                                   71,956 banks Other assets            504,425                                  578,275 Allowance for non-acquired loan      (46,780   )                             (48,902   ) losses Total noninterest-earning    544,800                                601,329    assets Total Assets          $ 4,517,076                             $ 3,947,773                                                                                                                    Interest-Bearing Liabilities: Transaction and money market          $ 1,626,552     $ 557          0.14  %   $ 1,406,033     $ 1,274     0.36   % accounts Savings deposits        317,810         90           0.11  %     264,196         188       0.28   % Certificates and        908,891         1,042        0.46  %     944,076         1,760     0.74   % other time deposits Federal funds purchased and           247,970         110          0.18  %     194,427         106       0.22   % repurchase agreements Other borrowings       47,555        554         4.63  %    46,774        573      4.86   % Total interest-bearing        3,148,778       2,353        0.30  %     2,855,506       3,901     0.54   % liabilities                                                                                                                   Noninterest-Bearing Liabilities: Demand deposits         886,240                                  675,998 Other liabilities      31,612                                 33,360     Total noninterest-bearing     917,852                                  709,358 liabilities ("Non-IBL") Shareholders'          450,446                                382,909    equity Total Non-IBL and shareholders'          1,368,298                              1,092,267  equity Total liabilities and shareholders'     $ 4,517,076                             $ 3,947,773  equity                                                                                Net interest income and margin        $ 47,910     4.80  %                   $ 39,924   4.73   % (NON-TAX EQUIV.) Net interest margin                                 4.88  %                               4.78   % (TAX EQUIVALENT)                                                                                                                    SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                             Twelve Months Ended                     December 31, 2012                          December 31, 2011                     Average         Interest      Average      Average         Interest      Average YIELD ANALYSIS      Balance         Earned/Paid   Yield/Rate   Balance         Earned/Paid   Yield/Rate                                                                                               Interest-Earning Assets: Federal funds sold, reverse repo, and   $ 241,332       $  1,157      0.48    %    $ 202,291       $  1,018      0.50    % time deposits Investment securities            325,420          7,577      2.33    %      212,788          6,222      2.92    % (taxable) Investment securities            126,143          3,947      3.13    %      64,404           2,273      3.53    % (tax-exempt) Loans held for sale   45,112           1,581      3.50    %      26,760           966        3.61    % Acquired loans, net of allowance for      481,754          53,634     11.13   %      379,678          41,684     10.98   % acquired loan losses Non-acquired loans   2,484,751      119,592    4.81    %     2,397,821      119,555    4.99    % (1) Total interest-earning      3,704,512        187,488    5.06    %      3,283,742        171,718    5.23    % assets                                                                                               Noninterest-Earning Assets: Cash and due from     88,487                                     78,543 banks Other assets          531,026                                    590,083 Allowance for non-acquired loan    (47,762   )                               (48,005   ) losses Total noninterest-earning  571,751                                  620,621    assets Total Assets        $ 4,276,263                               $ 3,904,363                                                                                                Interest-Bearing Liabilities: Transaction and money market        $ 1,538,795     $  3,117      0.20    %    $ 1,325,344     $  6,543      0.49    % accounts Savings deposits      297,498          479        0.16    %      253,652          906        0.36    % Certificates and      922,377          4,829      0.52    %      1,052,563        10,107     0.96    % other time deposits Federal funds purchased and         229,185          451        0.20    %      210,098          527        0.25    % repurchase agreements Other borrowings     46,537         2,219      4.77    %     47,239         2,182      4.62    % Total interest-bearing      3,034,392        11,095     0.37    %      2,888,896        20,265     0.70    % liabilities                                                                                               Noninterest-Bearing Liabilities: Demand deposits       799,263                                    615,956 Other liabilities    22,759                                   29,395     Total noninterest-bearing   822,022                                    645,351 liabilities ("Non-IBL") Shareholders'        419,849                                  370,116    equity Total Non-IBL and shareholders'        1,241,871                                1,015,467  equity Total liabilities and shareholders'   $ 4,276,263                               $ 3,904,363  equity                                                                                Net interest income and margin      $  176,393    4.76    %                    $  151,453    4.61    % (NON-TAX EQUIV.) Net interest margin                               4.83    %                                  4.66    % (TAX EQUIVALENT)                                                                                                        <td class="bwp*Story too large* SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                             Fourth                                              Three Months Ended                                               Quarter   Twelve Months Ended         YTD                 December     September    June 30,     March 31,    December     2012 -    December 31,                2012 -                 31,          30,                                    31,          2011                                  2011 NONINTEREST                                                                                                            % INCOME &        2012         2012         2012         2012         2011         % Change  2012          2011          Change EXPENSE Noninterest income: Gain on         $ --         $ --         $ --         $ --         $ --                   $ --          $ 16,529 acquisition Service charges on deposit        6,313        6,169        5,886        5,447        5,959      5.9    %    23,815        22,654      5.1   % accounts Mortgage          4,214        3,526        3,052        1,830        1,942      117.0  %    12,622        6,271       101.3 % banking income Bankcard          3,665        3,570        3,618        3,320        3,037      20.7   %    14,173        11,721      20.9  % services income Trust and investment        1,744        1,577        1,642        1,397        1,237      41.0   %    6,360         5,464       16.4  % services income Securities gains (losses),   128          --           61           --           (25    )   612.0  %    189           208         -9.1  % net (8) Accretion (amortization) on FDIC           (6,547 )     (6,623 )     (4,370 )     (3,233 )     (3,086 )   -112.2 %    (20,773 )     (10,135 )   105.0 % indemnification asset Other            1,383      947        1,855      712        599       130.9  %   4,897       2,407      103.4 % Total noninterest     $ 10,900    $ 9,166     $ 11,744    $ 9,473     $ 9,663     12.8   %  $ 41,283     $ 55,119     -25.1 % income                                                                                                                         Noninterest expense: Salaries and employee        $ 21,351     $ 18,647     $ 18,262     $ 18,048     $ 16,930     26.1   %  $ 76,308      $ 68,937      10.7  % benefits Net occupancy     2,470        2,621        2,478        2,248        2,309      7.0    %    9,817         9,674       1.5   % expense Furniture and equipment         2,340        2,165        2,371        2,239        2,211      5.8    %    9,115         8,475       7.6   % expense Information services          3,060        2,662        2,902        2,468        2,817      8.6    %    11,092        10,511      5.5   % expense Bankcard          985          1,057        1,118        902          874        12.7   %    4,062         3,241       25.3  % expense FDIC assessment and other         887          878          1,073        1,037        980        -9.5   %    3,875         4,573       -15.3 % regulatory charges OREO expense and loan          3,221        3,951        2,115        2,716        4,926      -34.6  %    12,003 related  [TRUNCATED]