SCBT Reports Operating Results for 1Q 2013 of $0.71 per share; Declares Quarterly Cash Dividend

  SCBT Reports Operating Results for 1Q 2013 of $0.71 per share; Declares   Quarterly Cash Dividend  Business Wire  COLUMBIA, S.C. -- April 26, 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 ended March 31, 2013. Highlights of the first quarter 2013 include:    *Net income of $10.6 million, or $0.63 diluted EPS in 1Q 2013 compared to     $5.9 million, or $0.38 diluted EPS in 4Q 2012 and $7.0 million, or $0.50     diluted EPS, in 1Q 2012;   *Operating earnings, which excludes merger-related expense and securities     gains or losses, of $12.0 million, or $0.71 diluted EPS in 1Q 2013     compared to $11.1 million, or $0.72 diluted EPS in 4Q 2012 and $7.1     million, or $0.51 diluted EPS in 1Q 2012;   *Completed the Savannah Bancorp, Inc. (“Savannah”) system conversion and     integration;   *Core deposit growth, excluding CDs and the Peoples and Savannah     acquisitions, up $32.8 million in 1Q 2013, or 5.2% annualized growth;   *Non-interest bearing deposits exceeded $1.0 billion;   *Return on average assets was 0.84% annualized in 1Q 2013 compared to 0.52%     in 4Q 2012 and 0.71% in 1Q 2012;   *Operating efficiency ratio was 64.5% in 1Q 2013 compared to 62.8% in 4Q     2012 and compared to 66.3% in 1Q 2012;   *Net charge-offs of non-acquired loans decreased to 0.56% annualized for 1Q     ^  2013, compared to 0.64% annualized for 4Q 2012 and 0.66% annualized for     1Q 2012;   *Non-performing Assets (NPAs): 1.49% of total assets for 1Q 2013 compared     to 1.58% for 4Q 2012 and 2.26% for 1Q 2012; 2.91% of loans and repossessed     assets, excluding acquired assets, for 1Q 2013 compared to 3.13% for 4Q     2012 and 3.72% for 1Q 2012; and   *Legacy loan growth for 1Q 2013 was $33.3 million or 5.2% annualized.  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 May 24, 2013 to shareholders of record as of May 17, 2013.  First Quarter 2013 Financial Performance  Please refer to the accompanying tables for detailed comparative data on results of operations and financial results.  The Company reported consolidated net income of $10.6 million, or $0.63 per diluted share, for the three months ended March 31, 2013 compared to consolidated net income of $5.9 million, or $0.38 per diluted share, for the fourth quarter of 2012. This $4.7 million increase was primarily the net result of improved net interest income, reduced provision for loan losses, and a reduction in merger-related expenses. The increases were offset by non-interest expense increases which are primarily due to salary and benefits expense increases.  “I am encouraged that our earnings continue to improve each quarter. We had solid performance this quarter and also experienced some impact from the conversion and integration of Savannah, as well as some seasonality in non-interest income,” said Robert R. Hill, Jr., president and CEO. “Our legacy loan growth continued at a nice pace of 5.2% annualized, and our non-interest demand deposits now exceed $1.0 billion. We also enjoyed strong growth in our wealth management area and bank card revenue, but experienced lower deposit service charge income and mortgage banking income due to seasonality. Our operating performance remained steady compared to the prior quarter with an operating return on average assets of 0.95% and operating return on equity of 9.49%. With the integration of Savannah, continued credit improvement in our acquired and non-acquired loan portfolios, and the announcement of the merger with First Financial Holdings, we remain very optimistic about the opportunities for continued improvement in our performance."  Asset Quality  During the first quarter of 2013, SCBT continued to experience improvement in asset quality, excluding acquired loans and OREO, as nonperforming loans declined by $5.3 million, or 8.6%, and classified assets declined by $2.3 million, or 1.6% from the fourth quarter of 2012. 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 1.49% primarily due to the decrease in non-acquired nonaccrual loans. NPAs, excluding acquired NPAs, declined by $4.7 million from the fourth quarter 2012 level. Improvements in asset quality continue as we experience improvement in housing starts (permits), home sales, and lower unemployment rates.  At March 31, 2013, the allowance for non-acquired loan losses was $41.7 million, or 1.60% of non-acquired period-end loans. The current allowance for loan losses provides 0.73 times coverage of period-end non-acquired nonperforming loans. Net charge-offs within the non-acquired loan portfolio decreased to $3.6 million, or 0.56% annualized from $4.1 million, or 0.64% annualized in the fourth quarter of 2012, and from $4.1 million, or 0.66% annualized in the first quarter of 2012.  Non-acquired other real estate owned (“OREO”) increased modestly by $611,000 from the fourth quarter of 2012 and decreased by $1.7 million from the first quarter of 2012. During the first quarter, the Company recorded write-downs on 23 properties totaling $1.1 million; sold $2.0 million of non-acquired OREO for a net $7,000 gain; and added 19 properties for a total of $3.6 million.  Net Interest Income and Margin  Non-taxable equivalent net interest income was $53.8 million for the first quarter of 2013, a $5.9 million increase from the fourth quarter 2012, resulting from the following:  1. Higher balance of average acquired loans (up $414.3 million) along with credit releases totaling $6.6 million resulted in an increase of $6.7 million of interest income on acquired loans; partially offset by  2. A decrease of 15 basis points in the yield on non-acquired loans which resulted in a decrease of $958,000 of interest income on non-acquired loans, with $616,000 related to the fewer days (90 vs. 92) in the first quarter compared to the fourth quarter of 2012.  Taxable-equivalent net interest margin increased 24 basis points from the first quarter of 2012 and 6 basis points from the fourth quarter of 2012 to 4.94%. The average yield on interest earning assets increased 3 basis points while the average rate on interest-bearing liabilities declined 18 basis points from the first quarter of 2012. During the first quarter of 2013, average total assets increased to $5.1 billion and average earning assets increased to almost $4.5 billion. This growth in average total assets was supported by growth in average total deposits to $4.2 billion. At March 31, 2013, non-interest bearing deposits exceeded $1.0 billion.  Noninterest Income and Expense  Noninterest income was relatively flat for the first quarter of 2013 compared to the first quarter of 2012. Increases in all noninterest income categories (excluding negative accretion on the indemnification asset) totaling $4.0 million were offset by the $3.9 million increase in the negative accretion on the FDIC indemnification asset. 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, and is being recognized over the shorter of the underlying assets remaining life or remaining term of the loss share agreements.  Compared to the fourth quarter of 2012, noninterest income was down a total of $1.2 million, excluding securities gains (losses). This decrease was the result of the following: (1) mortgage banking income decreased $819,000 due to fewer loans sold and reduced pipeline of mortgage loans; (2) service charges on deposit accounts were down $552,000 due to seasonality; and (3) the negative accretion on the FDIC indemnification asset increased by $624,000. Partially offsetting these decreases were increases of $570,000 in trust and investment services income and $228,000 in bankcard services income.  Noninterest expense was $46.4 million in the first quarter of 2013, a 31.9% or $11.2 million increase from $35.2 million in the first quarter of 2012. This increase was driven primarily by increased merger-related charges from the Savannah merger of $1.7 million and from the proposed First Financial merger of $300,000, and an increase in salaries and benefits of $5.2 million, or 28.8%. The increase in salaries and employee benefits resulted primarily from the impact of a full quarter of the addition of new FTEs largely related to the two acquisitions completed during 2012.  Compared to the fourth quarter of 2012, noninterest expense decreased by $1.7 million. The decrease resulted from a $5.6 million decline in merger-related expenses. This decline was partially offset by increases in most other noninterest expense categories from the full quarter impact of Savannah.  Balance Sheet and Capital  At March 31, 2013, SCBT’s total assets were $5.1 billion, up from $4.0 billion at March 31, 2012, and relatively flat from $5.1 billion at December 31, 2012. Since March 31, 2012, the company’s balance sheet has grown by almost $1.1 billion, or 27.1%, due primarily to closing of the Peoples Bancorporation, Inc. and The Savannah Bancorp, Inc. acquisitions. The asset growth was spread among increases in investment securities, acquired loans, non-acquired loans, premises and equipment, bank owned life insurance, and intangibles; and these were offset by declines in OREO of $12.5 million and decreases in FDIC receivables of $107.0 million. The asset growth was supported primarily by $698.9 million in core deposit growth, $93.3 million in correspondent bank federal funds purchased and $127.7 million in additional capital.  The Company’s book value per share increased to $30.22 per share at March 31, 2013, compared to $29.97 at December 31, 2012. Capital increased by $6.7 million due primarily to net income of $10.6 million partially offset by $3.1 million in dividends paid to our shareholders. Tangible book value (“TBV”) per share increased by $0.35 per share to $22.89 at March 31, 2013 from $22.54 at December 31, 2012 due to the capital increases described above.  The total risk-based capital ratio is estimated to have increased by 40 basis points from the fourth quarter of 2012 to 14.3%, due primarily to a change in risk-weighted asset mix relative to the increase in capital. Tier 1 leverage ratio decreased to 8.8% from 9.8% at December 31, 2012. The decline is driven by an almost $600.0 million increase in average total assets due to including a full quarter of Savannah assets in the average balance. The Company’s capital positions remain “well-capitalized” by all measures at March 31, 2013.  “Our net interest income remains strong with an increase of $5.9 million compared to last quarter, primarily the result of the addition of the Savannah acquired loan portfolio for the whole quarter,” said John C. Pollok, CFO and COO. “With the conversion of Savannah now completed, we are now planning the merger with First Financial over the next several months.”                                 ***************  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, and Minis & Co., Inc. Providing financial services for over 78 years, SCBT Financial Corporation operates 81 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 Friday, April 26^th 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 10026988. Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com. A replay will be available beginning April 26^th by 2:00 pm Eastern Time until 9:00 a.m. on May 13^th. To listen to the replay, dial 877-344-7529 or 412-317-0088. The passcode is 10026988.  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 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 Section21E 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. The Company cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from forecasted results. Such risks and uncertainties, include, among others, the following possibilities: (1)the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive merger agreement between the Company and First Financial Holdings, Inc. (“First Financial”); (2)the outcome of any legal proceedings that may be instituted against the Company or First Financial; (3)the inability to complete the transactions contemplated by the Merger Agreement due to the failure to satisfy each transaction’s respective conditions to completion, including the receipt of regulatory approval; (4)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; (5)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; (6)liquidity risk affecting the bank’s ability to meet its obligations when they come due; (7)price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (8)transaction risk arising from problems with service or product delivery; (9)compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (10)strategic risk resulting from adverse business decisions or improper implementation of business decisions; (11) reputation risk that adversely affects earnings or capital arising from negative public opinion; (12) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (13) cybersecurity risk related to our dependence on internal computer systems and the technology of outside service providers, as well as the potential impacts of third-party security breaches, subjects the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (14) economic downturn risk resulting in deterioration in the credit markets; (15) greater than expected noninterest expenses; (16) excessive loan losses; (17) failure to realize synergies and other financial benefits from, and to limit liabilities associates with, mergers and acquisitions, including mergers with Peoples Bancorporation (“Peoples”), The Savannah Bancorp,Inc. (“Savannah”), and First Financial, within the expected time frame; (18) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the integration of Savannah and First Financial, including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters; (19) the risks of fluctuations in market prices for Company Common Stock that may or may not reflect economic condition or performance of the Company; (20) the payment of dividends on Company Common Stock is subject to regulatory supervision as well as the discretion of the board of directors of the Company; and (21) 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)                                                                                                                                                                                            First                     Three Months Ended                                                                 Quarter                     March 31,        December 31,    September 30,    June 30,         March 31,       2013 -                                                                                                        2012 EARNINGS SUMMARY (non tax            2013             2012            2012             2012             2012            % Change equivalent) Interest income     $ 56,169         $ 50,263        $ 49,535         $ 45,470         $ 42,220        33.0     % Interest expense     2,368          2,351         2,625          2,936          3,182        -25.6    % Net interest income   53,801           47,912          46,910           42,534           39,038        37.8     % Provision for loan    1,060            2,211           4,044            4,641            2,723         -61.1    % losses (1) Noninterest income    9,523            10,900          9,166            11,744           9,473         0.5      % Noninterest expense  46,441         48,139        38,031         37,509         35,219       31.9     % Income before provision for         15,823           8,462           14,001           12,128           10,569        49.7     % income taxes Provision for        5,174          2,552         4,938          4,097          3,541        46.1     % income taxes Net income          $ 10,649        $ 5,910        $ 9,063         $ 8,031         $ 7,028        51.5     %                                                                                                         Effective tax rate    32.70      %     30.16      %    35.27      %     33.78      %     33.50      %                                                                                                         Basic weighted-average      16,769,049       15,320,472      14,920,423       14,650,914       13,882,801    20.8     % common shares Diluted weighted-average      16,935,601       15,446,778      15,043,067       14,733,325       13,951,290    21.4     % common shares                                                                                                         Earnings per share  $ 0.64           $ 0.39          $ 0.61           $ 0.55           $ 0.51          25.5     % - Basic Earnings per share    0.63             0.38            0.60             0.55             0.50          26.0     % - Diluted                                                                                                         Cash dividends      $ 0.18           $ 0.18          $ 0.17           $ 0.17           $ 0.17          5.9      % declared per share Dividend payout       28.75      %     46.06      %    28.34      %     31.93      %     34.00      %  -15.4    % ratio (2)                                                                                                         Operating Earnings (non-GAAP) (3) Net income (GAAP)   $ 10,649         $ 5,910         $ 9,063          $ 8,031          $ 7,028         51.5     % Securities (gains)    --               (89        )    --               (40        )     -- losses, net of tax Merger and conversion related   1,321          5,274         357            1,323          65           1937.6   % expense, net of tax Net operating earnings (loss)     $ 11,970        $ 11,095       $ 9,420         $ 9,314         $ 7,093        68.8     % (non-GAAP)                                                                                                         Operating earnings (loss) per share -  $ 0.71           $ 0.72          $ 0.63           $ 0.64           $ 0.51          39.2     % Basic Operating earnings (loss) per share -    0.71             0.72            0.63             0.63             0.51          39.2     % Diluted                                                                                                                                                                                                                First                     AVERAGE for Quarter Ended                                                          Quarter                     March 31,        December 31,    September 30,    June 30,         March 31,       2013 -                                                                                                        2012 BALANCE SHEET       2013             2012            2012             2012             2012            % Change HIGHLIGHTS Loans held for sale $ 51,216         $ 60,183        $ 56,300         $ 29,604         $ 34,073        50.3     % Acquired loans, net of allowance for      997,010          582,726         501,214          484,084          357,668       178.8    % acquired loan losses Non-acquired loans    2,576,545        2,528,753       2,497,478        2,456,069        2,456,080     4.9      % Total loans (1)       3,573,555        3,111,479       2,998,692        2,940,153        2,813,748     27.0     % FDIC receivable for loss share            139,172          162,580         194,116          219,183          246,556       -43.6    % agreements Total investment      553,214          510,434         501,816          468,334          324,473       70.5     % securities Intangible assets     125,257          87,372          79,857           79,583           74,089        69.1     % Earning assets        4,489,187        3,972,280       3,766,889        3,703,552        3,371,705     33.1     % Total assets          5,117,003        4,517,076       4,331,436        4,295,911        3,957,918     29.3     % Noninterest-bearing   969,400          886,240         813,394          795,867          700,438       38.4     % deposits Interest-bearing      3,236,610        2,853,253       2,800,446        2,808,884        2,570,595     25.9     % deposits Total deposits        4,206,010        3,739,493       3,613,840        3,604,751        3,271,033     28.6     % Federal funds purchased and         319,602          247,970         223,844          215,678          229,099       39.5     % repurchase agreements Other borrowings      54,713           47,555          45,908           46,203           46,480        17.7     % Shareholders'         511,392          450,446         429,183          415,952          383,377       33.4     % equity                                                                                                                                                                                                                 SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                        First                     ENDING Balance                                                                     Quarter                     March 31,        December 31,    September 30,    June 30,         March 31,       2013 -                                                                                                        2012 BALANCE SHEET       2013             2012            2012             2012             2012            % Change HIGHLIGHTS Loans held for sale $ 50,449         $ 65,279        $ 71,585         $ 42,525         $ 34,706        45.4     % Acquired loans        995,255          1,074,742       520,991          560,058          369,144       169.6    % Non-acquired loans    2,604,298        2,571,003       2,517,352        2,481,251        2,437,314     6.9      % Total loans (1)       3,599,553        3,645,745       3,038,343        3,041,309        2,806,458     28.3     % FDIC receivable for loss share            124,340          146,171         174,321          200,569          231,331       -46.3    % agreements Total investment      533,255          560,091         500,587          511,138          357,448       49.2     % securities Intangible assets     124,668          125,801         79,391           79,971           73,926        68.6     % Allowance for acquired loan         (31,277    )     (32,132    )    (31,138    )     (35,813    )     (34,355    )  -9.0     % losses Allowance for non-acquired loan     (41,669    )     (44,378    )    (46,439    )     (47,269    )     (47,607    )  -12.5    % losses (1) Premises and          110,792          115,583         105,579          106,458          93,209        18.9     % equipment Total assets          5,141,929        5,136,446       4,325,232        4,373,269        4,046,343     27.1     % Noninterest-bearing   1,002,662        981,963         818,633          806,235          757,777       32.3     % deposits Interest-bearing      3,216,694        3,316,397       2,770,665        2,854,737        2,598,860     23.8     % deposits Total deposits        4,219,356        4,298,360       3,589,298        3,660,972        3,356,637     25.7     % Federal funds purchased and         328,701          238,621         226,330          220,264          235,412       39.6     % repurchase agreements Other borrowings      54,638           54,897          45,807           46,105           46,397        17.8     % Total liabilities     4,627,718        4,628,897       3,891,308        3,948,363        3,659,836     26.4     % Shareholders'         514,211          507,549         433,924          424,906          386,507       33.0     % equity                                                                                                         Common shares issued and            17,017,904       16,937,464      15,114,185       15,085,991       14,052,177    21.1     % outstanding                                                                                                                                                                                                                First                                                                                                        Quarter                     March 31,        December 31,    September 30,    June 30,         March 31,       2013 -                                                                                                        2012 NONPERFORMING ASSETS (ENDING      2013             2012            2012             2012             2012            % Change BALANCE) Non-acquired Non-acquired        $ 42,945         $ 48,387        $ 46,295         $ 47,940         $ 59,278        -27.6    % nonaccrual loans Restructured loans    13,636           13,151          12,882           9,530            10,578        28.9     % Other real estate owned ("OREO") not covered under FDIC loss share       19,680           19,069          22,424           25,518           21,381        -8.0     % agreements Accruing loans past   121              500             156              137              130           -6.9     % due 90 days or more Other nonperforming  --             --            --             --             24           -100.0   % assets Total non-acquired nonperforming        76,382         81,107        81,757         83,125         91,391       -16.4    % assets Acquired (7) Acquired nonaccrual   --               --              --               --               -- loans OREO covered under FDIC loss share       34,244           34,257          47,063           53,146           61,788        -44.6    % agreements OREO not covered under FDIC loss       16,766           13,179          5,059            5,745            -- share agreements Other nonperforming  26             44            57             73             215         assets Total acquired nonperforming        51,036         47,480        52,179         58,964         62,003       -17.7    % assets Total nonperforming $ 127,418       $ 128,587      $ 133,936       $ 142,089       $ 153,394      -16.9    % assets                                                                                                         Excluding Acquired Assets Total nonperforming assets as a percentage of total non-acquired loans and            2.91       %    3.13       %   3.22       %    3.32       %    3.72       % repossessed assets (1) (4) Total nonperforming assets as a percentage of total assets (5)  1.49       %    1.58       %   1.89       %    1.90       %    2.26       % NPLs as a percentage of        2.18       %    2.41       %   2.36       %    2.32       %    2.87       % period end non-acquired loans Including Acquired Assets Total nonperforming assets as a percentage of total loans and repossessed assets   3.47       %    3.46       %   4.31       %    4.55       %    5.31       % (1) (4) Total nonperforming assets as a percentage of total assets      2.48       %    2.50       %   3.10       %    3.25       %    3.79       % NPLs as a percentage of        1.58       %    1.70       %   1.95       %    1.89       %    2.49       % period end loans                                                                                                         OTHER ASSET QUALITY INFORMATION Classified Assets (Ending Balance) (11) Classified loans    $ 121,222        $ 124,133       $ 135,095        $ 135,099        $ 156,118       -22.4    % OREO and other nonperforming        19,680         19,069        22,424         25,518         21,405       -8.1     % assets Total classified    $ 140,902       $ 143,202      $ 157,519       $ 160,617       $ 177,523      -20.6    % assets                                                                                                         Tier 1 capital and non-acquired        $ 484,744       $ 477,686      $ 444,200       $ 436,964       $ 406,070      19.4     % allowance for loan losses Classified assets as a percentage of Tier 1 capital and non-acquired allowance for loan   29.07      %    29.98      %   35.46      %    36.76      %    43.72      % losses                                                                                                         Non-acquired Loans  $ 7,199         $ 7,189        $ 9,270         $ 10,464        $ 7,290        -1.3     % 30-89 Day Past Due                                                                                                                                                                                                                 SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                        First                     Quarter Ended                                                                      Quarter                     March 31,        December 31,    September 30,    June 30,         March 31,       2013 -                                                                                                        2012 ALLOWANCE FOR LOAN  2013             2012            2012             2012             2012            % Change LOSSES (1) Non-acquired Loans: Balance at          $ 44,378         $ 46,439        $ 47,269         $ 47,607         $ 49,367        -10.1    % beginning of period Loans charged off     (4,148     )     (4,291     )    (5,506     )     (5,114     )     (5,344     )  -22.4    % Overdrafts charged    (459       )     (446       )    (434       )     (441       )     (354       )  29.7     % off Loan recoveries       826              550             481              700              1,424         -42.0    % Overdraft            219            131           129            125            216          1.4      % recoveries Net charge-offs       (3,562     )     (4,056     )    (5,330     )     (4,730     )     (4,058     )  -12.2    % Provision for loan losses on            853            1,995         4,500          4,392          2,298        -62.9    % non-acquired loans Balance at end of period,              41,669         44,378        46,439         47,269         47,607       -12.5    % non-acquired loans Acquired Loans: Balance at            32,132           31,138          35,812           34,355           31,620 beginning of 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    (855       )     994             (4,674     )     1,457            2,735 agreements Benefit attributable to      1,062          (778       )   4,218          (1,208     )    (2,310     ) FDIC loss share agreements Net provision for loan losses on       207            216           (456       )    249            425         acquired loans Provision for loan losses recorded through the FDIC loss share           (1,062     )    778           (4,218     )    1,208          2,310       receivable Balance at end of period, acquired     31,277         32,132        31,138         35,812         34,355      loans Balance at end of period, total       $ 72,946        $ 76,510       $ 77,577        $ 83,081        $ 81,962       -11.0    % allowance for loan losses                                                                                                         Total provision for loan losses charged $ 1,060         $ 2,211        $ 4,044         $ 4,641         $ 2,723       to operations Allowance for non-acquired loan losses as a percentage of non-acquired loans   1.60       %    1.73       %   1.84       %    1.91       %    1.95       % (1) Allowance for loan losses as a percentage of total  2.03       %    2.10       %   2.55       %    2.73       %    2.92       % loans (1) Allowance for non-acquired loan losses as a percentage of non-acquired         73.49      %    71.53      %   78.27      %    82.05      %    68.02      % nonperforming loans Net charge-offs on non-acquired loans as a percentage of average non-acquired loans   0.56       %    0.64       %   0.85       %    0.77       %    0.66       % (annualized) (1)                                                                                                                                                                                                                First                                                                                                        Quarter                     March 31,        December 31,    September 30,    June 30,         March 31,       2013 -                                                                                                        2012 LOAN PORTFOLIO (ENDING balance)    2013             2012            2012             2012             2012            % Change (1) Acquired covered    $ 257,066        $ 282,728       $ 309,034        $ 332,874        $ 363,051       -29.2    % loans Acquired              738,189          792,014         211,957          227,184          6,093         12015.4  % non-covered loans Non-acquired loans: Commercial non-owner occupied real estate: Construction and      273,488          273,420         273,606          279,519          294,865       -7.2     % land development Commercial           298,707        290,071       278,935        284,147        284,044      5.2      % non-owner occupied Total commercial non-owner occupied    572,195          563,491         552,541          563,666          578,909       -1.2     % real estate Consumer real estate: Consumer owner        443,134          434,503         430,825          420,298          407,697       8.7      % occupied Home equity loans    249,356        255,284       255,677        257,061        258,054      -3.4     % Total consumer real   692,490          689,787         686,502          677,359          665,751       4.0      % estate Commercial owner occupied real         796,139          784,152         787,623          763,338          744,441       6.9      % estate Commercial and        291,308          279,763         245,285          228,010          216,083       34.8     % industrial Other income          131,776          133,713         131,832          132,193          130,177       1.2      % producing property Consumer non real     93,997           86,934          86,729           87,290           85,350        10.1     % estate Other                26,393         33,163        26,840         29,395         16,603       59.0     % Total non-acquired   2,604,298      2,571,003     2,517,352      2,481,251      2,437,314    6.9      % loans Total loans (net of unearned income)    $ 3,599,553     $ 3,645,745    $ 3,038,343     $ 3,041,309     $ 2,806,458    28.3     % (1)                                                                                                         Loans held for sale $ 50,449        $ 65,279       $ 71,585        $ 42,525        $ 34,706       45.4     %                                                                                                         SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                                                                                                                                                     Quarter Ended                     March 31,        December 31,    September 30,    June 30,         March 31, SELECTED RATIOS     2013             2012            2012             2012             2012                                                                                                         Return on average    0.84       %    0.52       %   0.83       %    0.75       %    0.71       % assets (annualized)                                                                                                         Operating return on average assets       0.95       %    0.98       %   0.87       %    0.88       %    0.72       % (annualized) (non-GAAP) (3)                                                                                                         Return on average    8.45       %    5.22       %   8.40       %    7.77       %    7.37       % equity (annualized)                                                                                                         Operating return on average equity       9.49       %    9.80       %   8.73       %    9.05       %    7.44       % (annualized) (non-GAAP) (3)                                                                                                         Return on average tangible equity      11.92      %    6.91       %   10.74      %    9.92       %    9.57       % (annualized) (non-GAAP) (10)                                                                                                         Net interest margin  4.94       %    4.88       %   5.03       %    4.69       %    4.70       % (tax equivalent)                                                                                                         Efficiency ratio     72.37      %    80.95      %   66.91      %    68.34      %    72.02      % (tax equivalent)                                                                                                         Operating efficiency ratio     64.47      %    62.84      %   58.96      %    60.84      %    66.27      % excluding OREO expense                                                                                                         Book value per      $ 30.22         $ 29.97        $ 28.71         $ 28.17         $ 27.51       common share                                                                                                         Tangible book value per common share    $ 22.89         $ 22.54        $ 23.46         $ 22.86         $ 22.24       (non-GAAP) (10)                                                                                                         Common shares issued and           17,017,904     16,937,464    15,114,185     15,085,991     14,052,177  outstanding                                                                                                         Equity-to-assets     10.00      %    9.88       %   10.03      %    9.72       %    9.55       %                                                                                                         Tangible equity-to-tangible   7.76       %    7.62       %   8.35       %    8.03       %    7.87       % assets (non-GAAP) (10)                                                                                                         Tier 1 leverage (9)  8.8        %    9.8        %   9.3        %    9.2        %    9.2        %                                                                                                         Tier 1 risk-based    13.1       %    12.7       %   14.0       %    13.9       %    14.5       % capital (9)                                                                                                         Total risk-based     14.3       %    13.9       %   15.2       %    15.1       %    15.8       % capital (9)                                                                                                                                                                                                                                     Quarter Ended                     March 31,        December 31,    September 30,    June 30,         March 31, RECONCILIATION OF   2013             2012            2012             2012             2012 NON-GAAP TO GAAP                                                                                                         Pre-tax, Pre-provision Operating Earnings (6) Net income (GAAP)   $ 10,649         $ 5,910         $ 9,063          $ 8,031          $ 7,028         51.5     % Provision for loan    1,060            2,211           4,044            4,641            2,723         -61.1    % losses (1) Provision for        5,174          2,552         4,938          4,097          3,541        46.1     % income taxes Pre-tax, pre-provision         16,883           10,673          18,045           16,769           13,292        27.0     % income Securities gains      --               (128       )    --               (61        )     -- Merger and conversion related   1,963          7,552         568            1,998          96          expense Pre-tax, pre-provision       $ 18,846        $ 18,097       $ 18,613        $ 18,706        $ 13,388       40.8     % operating earnings (non-GAAP)                                                                                                         Operating efficiency ratio excluding OREO expense Operating efficiency ratio      64.47      %     62.84      %    58.96      %     60.84      %     66.27      % excluding OREO expense Effect to adjust for OREO and loan     4.84       %     5.41       %    6.95       %     3.86       %     5.56       % related expense Effect to adjust for merger and       2.80       %    12.70      %   1.00       %    3.64       %    0.19       % conversion expenses Efficiency ratio     72.37      %    80.95      %   66.91      %    68.34      %    72.02      % (Tax Equivalent)                                                                                                         Operating Return of Average Assets (3) Operating return on average assets        0.95       %     0.98       %    0.87       %     0.88       %     0.72       % (non-GAAP) Effect to adjust for securities        0.00       %     0.01       %    0.00       %     0.00       %     0.00       % gains (losses) Effect to adjust for merger and       -0.11      %    -0.47      %   -0.04      %    -0.13      %    -0.01      % conversion related expenses Return on average    0.84       %    0.52       %   0.83       %    0.75       %    0.71       % assets (GAAP)                                                                                                         Operating Return of Average Equity (3) Operating return on average equity        9.49       %     9.80       %    8.73       %     9.05       %     7.44       % (non-GAAP) Effect to adjust for securities        0.00       %     0.08       %    0.00       %     0.04       %     0.00       % gains (losses) Effect to adjust for merger and       -1.04      %    -4.66      %   -0.33      %    -1.32      %    -0.07      % conversion related expenses Return on average    8.45       %    5.22       %   8.40       %    7.77       %    7.37       % equity (GAAP)                                                                                                         SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                                             Quarter Ended                     March 31,        December 31,    September 30,    June 30,         March 31, RECONCILIATION OF NON-GAAP TO GAAP    2013             2012            2012             2012             2012 (CONTINUED)                                                                                                         Return on Average Tangible Equity (10) Return on average tangible equity       11.92      %     6.91       %    10.74      %     9.92       %     9.57       % (non-GAAP) Effect to adjust for intangible       -3.47      %    -1.69      %   -2.34      %    -2.15      %    -2.20      % assets Return on average    8.45       %    5.22       %   8.40       %    7.77       %    7.37       % equity (GAAP)                                                                                                         Tangible Book Value Per Common Share (10) Tangible book value per common share    $ 22.89          $ 22.54         $ 23.46          $ 22.86          $ 22.24 (non-GAAP) Effect to adjust for intangible       7.33           7.43          5.25           5.30           5.26        assets Book value per      $ 30.22         $ 29.97        $ 28.71         $ 28.17         $ 27.51       common share (GAAP)                                                                                                         Tangible Equity-to-Tangible Assets (10) Tangible equity-to-tangible    7.76       %     7.62       %    8.35       %     8.03       %     7.87       % assets (non-GAAP) Effect to adjust for intangible       2.24       %    2.26       %   1.68       %    1.69       %    1.68       % assets Equity-to-assets     10.00      %    9.88       %   10.03      %    9.72       %    9.55       % (GAAP)                                                                                                                                                                                                                                     Three Months Ended                     March 31, 2013                                    March 31, 2012                     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   $ 311,202        $ 418             0.54       %     199,410        $ 212           0.43     % time deposits Investment securities            394,917          2,161           2.22       %     263,037          1,691         2.59     % (taxable) Investment securities            158,297          1,206           3.09       %     61,436           540           3.54     % (tax-exempt) Loans held for sale   51,216           382             3.02       %     34,073           322           3.80     % Acquired loans, net of allowance for      997,010          23,370          9.51       %     357,668          9,110         10.24    % acquired loan losses Non-acquired loans   2,576,544      28,632         4.51       %    2,456,080      30,345       4.97     % (1) Total interest-earning      4,489,186        56,169          5.07       %     3,371,704        42,220        5.04     % assets                                                                                                         Noninterest-Earning Assets: Cash and due from     120,005                                           92,208 banks Other assets          552,148                                           543,323 Allowance for non-acquired loan    (44,336    )                                     (49,317    ) losses Total noninterest-earning  627,817                                         586,214     assets Total Assets        $ 5,117,003                                      $ 3,957,918                                                                                                           Interest-Bearing Liabilities: Transaction and money market        $ 1,852,399      $ 605             0.13       %   $ 1,430,819      $ 1,007         0.28     % accounts Savings deposits      349,968          81              0.09       %     268,251          146           0.22     % Certificates and      1,034,242        873             0.34       %     871,526          1,341         0.62     % other time deposits Federal funds purchased and         319,602          136             0.17       %     229,099          126           0.22     % repurchase agreements Other borrowings     54,713         673            4.99       %    46,480         563          4.87     % Total interest-bearing      3,610,924        2,368           0.27       %     2,846,175        3,183         0.45     % liabilities                                                                                                         Noninterest-Bearing Liabilities: Demand deposits       969,361                                           700,438 Other liabilities    25,326                                          27,928      Total noninterest-bearing   994,687                                           728,366 liabilities ("Non-IBL") Shareholders'        511,392                                         383,377     equity Total Non-IBL and shareholders'        1,506,079                                       1,111,743   equity Total liabilities and shareholders'   $ 5,117,003                                      $ 3,957,918   equity                                                                                        Net interest income and margin       $ 53,801        4.86       %                    $ 39,037       4.66     % (NON-TAX EQUIV.) Net interest margin                                   4.94       %                                    4.70     % (TAX EQUIVALENT)                                                                                                         SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                        First                     Three Months Ended                                                                 Quarter                     March 31,        December 31,    September 30,    June 30,         March 31,       2013 -                                                                                                        2012 NONINTEREST INCOME  2013             2012            2012             2012             2012            % Change & EXPENSE Noninterest income: Service charges on  $ 5,761          $ 6,313         $ 6,169          $ 5,886          $ 5,447         5.8      % deposit accounts Bankcard services     3,893            3,665           3,570            3,618            3,320         17.3     % income Mortgage banking      3,395            4,214           3,526            3,052            1,830         85.5     % income Trust and investment services   2,314            1,744           1,577            1,642            1,397         65.6     % income Securities gains,     --               128             --               61               -- net (8) Amortization of FDIC                  (7,171     )     (6,547     )    (6,623     )     (4,370     )     (3,233     )  -121.8   % indemnification asset Other                1,331          1,383         947            1,855          712          86.9     % Total noninterest   $ 9,523         $ 10,900       $ 9,166         $ 11,744        $ 9,473        0.5      % income                                                                                                         Noninterest expense: Salaries and        $ 23,252         $ 21,351        $ 18,647         $ 18,262         $ 18,048        28.8     % employee benefits Information           3,192            3,060           2,662            2,902            2,468         29.3     % services expense OREO expense and      3,102            3,221           3,951            2,115            2,716         14.2     % loan related Net occupancy         2,932            2,470           2,621            2,478            2,248         30.4     % expense Furniture and         2,572            2,340           2,165            2,371            2,239         14.9     % equipment expense Merger and conversion related    1,963            7,552           568              1,998            96            1944.8   % expense Business development and       1,228            1,017           878              689              752           63.3     % staff related FDIC assessment and other regulatory      1,224            887             878              1,073            1,037         18.0     % charges Bankcard expense      1,164            985             1,057            1,118            902           29.0     % Amortization of       1,034            566             566              540              500           106.8    % intangibles Professional fees     691              673             643              732              633           9.2      % Advertising and       842              689             736              553              757           11.2     % marketing Other                3,245          3,328         2,659          2,678          2,823        14.9     % Total noninterest   $ 46,441        $ 48,139       $ 38,031        $ 37,509        $ 35,219       31.9     % expense                                                                                                                                                                                                                                                                                                                         Notes: (1) Loan data excludes mortgage loans held for sale. (2) The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period of 2013. (3) Operating earnings, operating return on average assets, and operating return on average equity are non-GAAP measures and exclude the after-tax effect of gains on acquisitions, gains or losses on sales of securities, OTTI, and merger and conversion related expense. Management believes that non-GAAP operating measures provide additional useful information that allows readers to evaluate the ongoing performance of the company. 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. Operating earnings and the related operating return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger and conversion related expense of $1,963,000, $7,552,000, $568,000, $1,998,000, and $96,000, for the quarters ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012, respectively; and (b) pre-tax securities gains of $128,000 and $61,000 for the quarters ended December 31, 2012 and June 30, 2012, respectively. (4) Repossessed assets includes OREO and other nonperforming assets. (5) Calculated by dividing total non-acquired NPAs by total assets. (6) Pre-tax, pre-provision operating earnings is a non-GAAP measure and excludes the effect of the provision for loan losses, the provision for income taxes, the gains on acquisitions, gains or losses on sales of securities, OTTI, and merger and conversion related expense. Management believes that non-GAAP pre-tax, pre-provision operating earnings provides additional useful information that allows readers to evaluate the ongoing performance of the company. 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. (7) Acquired loans are not included in non-performing loans because the accretion method is being used for all acquired loan pools. (8) If an other-than-temporary impairment charge was recorded during the quarter, the amount would be reflected in the "securities gains (losses), net" line item. (9) March 31, 2013 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed. All ratios are rounded down to one decimal point. (10) The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible return on equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. 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. The sections titled "Reconciliation of Non-GAAP to GAAP" provide tables that reconcile non-GAAP measures to GAAP. (11) Classified asset data excludes acquired assets.  Contact:  SCBT Financial Corporation Media Contact: Donna Pullen, 803-765-4558 Analyst Contact: John C. Pollok, 803-765-4628  
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