SCBT Reports Record Operating Results for 2Q 2013 of $0.77 per share; Declares Quarterly Cash Dividend

  SCBT Reports Record Operating Results for 2Q 2013 of $0.77 per share;   Declares Quarterly Cash Dividend  Business Wire  COLUMBIA, S.C. -- July 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 June 30, 2013. Highlights of the second quarter 2013 include:    *Net income of $12.5 million, or $0.74 diluted EPS in 2Q 2013 compared to     $10.6 million, or $0.63 diluted EPS 1Q 2013 and $8.0 million, or $0.55     diluted EPS, in 2Q 2012;   *Operating earnings, which excludes merger-related expense and securities     gains or losses, of $13.1 million, or $0.77 diluted EPS in 2Q 2013     compared to $12.0 million, or $0.71 diluted EPS in 1Q 2013 and $9.3     million, or $0.63 diluted EPS in 2Q 2012;   *Core deposit growth, excluding CDs and the Savannah acquisition, up $42.8     million in 2Q 2013, or 6.2% annualized growth;   *Return on average assets was 0.99% annualized in 2Q 2013 compared to 0.84%     in 1Q 2013 and 0.75% in 2Q 2012;   *Operating efficiency ratio was 63.8% in 2Q 2013 compared to 64.5% in 1Q     2013 and compared to 60.8% in 2Q 2012;   *Net charge-offs of non-acquired loans decreased to 0.40% annualized for 2Q     ^  2013, compared to 0.56% annualized for 1Q 2013 and 0.77% annualized for     2Q 2012;   *Non-performing Assets (NPAs) improved to 2.56% of loans and repossessed     assets, excluding acquired assets, for 2Q 2013 compared to 2.91% for 1Q     2013 and 3.32% for 2Q 2012; and   *Legacy loan growth for 2Q 2013 was $61.3 million or 9.4% annualized.  Quarterly Cash Dividend  The Board of Directors of SCBT has declared a quarterly cash dividend of $0.19 per share on its common stock payable on August 23, 2013 to shareholders of record as of August 16, 2013. This per share amount is $0.01 per share, or 5.6% higher than the dividend paid in the immediately preceding quarter and is $0.02 per share, or 11.8%, higher than a year ago.  Second 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 $12.5 million, or $0.74 per diluted share, for the three months ended June 30, 2013 compared to consolidated net income of $10.6 million, or $0.63 per diluted share, for the first quarter of 2013. This $1.9 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 a decline in noninterest income.  “I am pleased to announce record operating earnings for the second quarter, and continued improvement in our return on assets and return on equity,” said Robert R. Hill, Jr., president and CEO. “Our performance this quarter was driven by continued asset quality improvements, a higher net interest income and lower non-interest expense. We experienced some revenue slowdown in mortgage banking, as mortgage originations decreased somewhat in association with rising interest rates during the quarter. Our loan and core deposit growth continued to be strong with non-acquired loan growth of 9.4% annualized. We also completed the integration of The Savannah Bancorp., Inc. and are making excellent progress in the Savannah market.”  Asset Quality  During the second quarter of 2013, SCBT continued to experience improvement in asset quality, excluding acquired loans and other real estate owned (“OREO”), as nonperforming loans declined by $4.0 million, or 7.0%, and classified assets declined by $17.3 million, or 12.3% from the first quarter of 2013. Nonperforming assets to total assets declined to 1.36% due to the decrease in both non-acquired nonaccrual loans and OREO. NPAs, excluding acquired NPAs, declined by $7.7 million from the first quarter 2013 level. Improvements in asset quality continue as we experienced improvement in our markets in housing starts (permits), home sales, continued decline in net charge-offs and lower unemployment rates.  At June 30, 2013, the allowance for non-acquired loan losses was $38.6 million, or 1.45% of non-acquired period-end loans. The current allowance for loan losses represents 73% of period-end non-acquired nonperforming loans. Net charge-offs within the non-acquired loan portfolio decreased to $2.6 million, or 0.40% annualized from $3.6 million, or 0.56% annualized in the first quarter of 2013, and from $4.7 million, or 0.77% annualized in the second quarter of 2012. In evaluating our provision for loan losses, 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.  Non-acquired OREO decreased by $3.7 million from the first quarter of 2013 and decreased by $9.6 million from the second quarter of 2012. During the second quarter, the Company recorded write-downs on 14 properties totaling $960,000; sold 30 properties with book value of $4.6 million for a net gain of $136,000; and added 17 properties for a total of $1.8 million.  Net Interest Income and Margin  Non-taxable equivalent net interest income was $55.3 million for the second quarter of 2013, a $1.5 million increase from the first quarter of 2013, resulting from an increase in yields on the acquired loan portfolio and an increase in volume of non-acquired loans. The yield on interest earning assets increased by 6 basis points to 5.13%.  We are estimating significant cash flow improvements in our acquired loan portfolios, primarily in the CBT and Peoples portfolios, as part of our recast process.  The overall cost of funds declined by 1 basis point from 21 basis points during the first quarter to 20 basis points during the second quarter (including the impact of non-interest bearing demand deposits).  Noninterest Income and Expense  Noninterest income declined for the second quarter of 2013 compared to the second quarter of 2012. This decrease was the result of the following: (1) mortgage banking income decreased $1.1 million due to fewer loans sold and reduced pipeline; (2) service charges on deposit accounts were down $150,000; (3) other fees were down $436,000 due to a decrease in recoveries related to acquired loans; and (4) the negative accretion on the FDIC indemnification asset increased by $2.9 million. Partially offsetting these decreases were increases of $796,000 in trust and investment services income and $627,000 in bankcard services income. 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 first quarter of 2013, noninterest income was down a total of $1.0 million. This decrease resulted from a $1.4 million decrease in mortgage banking income. Partially offsetting this decrease was an increase of $352,000 in bankcard services income.  Noninterest expense was $44.9 million in the second quarter of 2013, a 19.7% or $7.4 million increase from $37.5 million in the second quarter of 2012. This increase was driven primarily by an increase in salaries and benefits of $5.5 million, or 30.0%, and increases in all other noninterest expense categories, excluding merger-related expense and furniture and equipment expense. The increase in salaries and employee benefits resulted primarily from the impact of the addition of new FTEs largely related to the Savannah acquisition. Declines of $1.1 million in merger-related expenses and $105,000 in furniture and equipment expenses partially offset these increases.  Compared to the first quarter of 2013, noninterest expense decreased by $1.6 million. The decrease resulted from a $1.1 million decline in merger-related expenses and small declines in most other noninterest expense categories. This decline was partially offset by an increase of $494,000 in salaries and benefits, primarily the result of an increase the number of employees participating in the 401(k) plan and the resulting match.  Balance Sheet and Capital  At June 30, 2013, SCBT’s total assets were $5.0 billion, up from $4.4 billion at June 30, 2012, and down slightly from $5.1 billion at March 31, 2013. Since June 30, 2012, the company’s balance sheet has grown by over $669.8 million, or 15.3%, due primarily to closing of The Savannah Bancorp, Inc. acquisition. 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 $15.8 million and decreases in FDIC receivables of $96.5 million. The asset growth was supported primarily by $522.0 million in deposit growth, $42.2 million in correspondent bank federal funds purchased and $91.7 million in additional capital.  The Company’s book value per share increased to $30.33 per share at June 30, 2013, compared to $30.22 at March 31, 2013. Capital increased by $2.3 million due primarily to net income of $12.5 million partially offset by an $8.3 million net unrealized loss on AFS securities and $3.1 million in dividends paid to our shareholders. Tangible book value (“TBV”) per share increased by $0.20 per share to $23.09 at June 30, 2013 from $22.89 at March 31, 2013 due to the capital increases described above.  The total risk-based capital ratio is estimated to have increased by 30 basis points from the first quarter of 2013 to 14.7%, due primarily to a change in risk-weighted asset mix relative to the increase in capital. Tier 1 leverage ratio increased to 9.2% from 8.9% at March 31, 2013. The increase is driven by the growth in capital due to net income of $12.5 million partially offset by the increase in average total assets. The Company’s capital positions remain “well-capitalized” by all measures at June 30, 2013.  “Our performance during the quarter has enabled us to increase the dividend to our shareholders to $0.19 per share, which is a $0.02 per share, or 11.8%, increase over the dividend paid one year ago,” said John C. Pollok, CFO and COO. “In addition, this current dividend will represent for a First Financial shareholder a year over year increase of approximately 60% in dividend received.”  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 $5.0 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, July 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 888-317-6016. The number for international participants is 412-317-6016. The conference ID number is 10030421. Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com. A replay will be available beginning July 26^th by 2:00 pm Eastern Time until 9:00 a.m. on August 12^th. To listen to the replay, dial 877-344-7529 or 412-317-0088. The passcode is 10030421.  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)                                                                                                                                                                                                                                                                         Second                         Three Months Ended                                                                   Quarter    Six Months Ended                  YTD                         June 30,         March 31,        December 31,     September 30,    June 30,         2013 -     June 30,                          2013 -                                                                                                              2012                                         2012 EARNINGS SUMMARY                                                                                                                                          % (non tax                2013             2013             2012             2012             2012             % Change   2013             2012             Change equivalent) Interest income         $ 57,530         $ 56,169         $ 50,263         $ 49,535         $ 45,470         26.5  %    $ 113,699        $ 87,690         29.7  % Interest expense         2,246          2,368          2,351          2,625          2,936         -23.5 %     4,614         6,118         -24.6 % Net interest income       55,284           53,801           47,912           46,910           42,534         30.0  %      109,085          81,572         33.7  % Provision for loan        179              1,060            2,211            4,044            4,642          -96.1 %      1,239            7,365          -83.2 % losses (1) Noninterest income        8,485            9,523            10,900           9,166            11,744         -27.8 %      18,008           21,217         -15.1 % Noninterest expense      44,885         46,441         48,139         38,031         37,508        19.7  %     91,326        72,727        25.6  % Income before provision for             18,705           15,823           8,462            14,001           12,128         54.2  %      34,528           22,697         52.1  % income taxes Provision for            6,173          5,174          2,552          4,938          4,097         50.7  %     11,347        7,638         48.6  % income taxes Net income              $ 12,532        $ 10,649        $ 5,910         $ 9,063         $ 8,031         56.0  %    $ 23,181        $ 15,059        53.9  %                                                                                                                                                            Effective tax rate        33.00      %     32.70      %     30.16      %     35.27      %     33.78      %                32.86      %     33.65      %                                                                                                                                                            Basic weighted-average          16,790,167       16,787,487       15,320,472       14,920,423       14,650,914     14.6  %      16,803,656       14,260,257     17.8  % common shares Diluted weighted-average          16,989,818       16,954,039       15,446,778       15,043,067       14,733,325     15.3  %      16,986,172       14,333,775     18.5  % common shares                                                                                                                                                            Earnings per share      $ 0.75           $ 0.63           $ 0.39           $ 0.61           $ 0.55           36.4  %    $ 1.38           $ 1.06           30.2  % - Basic Earnings per share        0.74             0.63             0.38             0.60             0.55           34.5  %      1.36             1.05           29.5  % - Diluted                                                                                                                                                            Cash dividends          $ 0.18           $ 0.18           $ 0.18           $ 0.17           $ 0.17           5.9   %    $ 0.36           $ 0.34           5.9   % declared per share Dividend payout           24.46      %     28.75      %     46.06      %     28.34      %     31.93      %   -23.4 %      26.43      %     32.90      %   -19.6 % ratio (2)                                                                                                                                                            Operating Earnings (non-GAAP) (3) Net income (GAAP)       $ 12,532         $ 10,649         $ 5,910          $ 9,063          $ 8,031          56.0  %    $ 23,181         $ 15,059         53.9  % Securities (gains)        --               --               (89        )     --               (40        )                --               -- losses, net of tax Merger and conversion related       576            1,321          5,274          357            1,323         -56.4 %     1,897          1,387       expense, net of tax Net operating earnings (loss)         $ 13,108        $ 11,970        $ 11,095        $ 9,420         $ 9,314         40.7  %    $ 25,078        $ 16,446        52.5  % (non-GAAP)                                                                                                                                                            Operating earnings (loss) per share -      $ 0.78           $ 0.71           $ 0.72           $ 0.63           $ 0.64           21.9  %    $ 1.49           $ 1.15           29.6  % Basic Operating earnings (loss) per share -        0.77             0.71             0.72             0.63             0.63           22.2  %      1.48             1.14           29.8  % Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                          Second                         AVERAGE for Quarter Ended                                                            Quarter    AVERAGE for Six Months            YTD                         June 30,         March 31,        December 31,     September 30,    June 30,         2013 -     June 30,         June 30,         2013 -                                                                                                              2012                                         2012 BALANCE SHEET           2013             2013             2012             2012             2012             % Change   2013             2012             % HIGHLIGHTS                                                                                                                                                Change Loans held for sale     $ 40,040         $ 51,216         $ 60,183         $ 56,300         $ 29,604         35.3  %    $ 45,597         $ 31,838         43.2  % Acquired loans, net of allowance for          927,520          997,010          582,726          501,214          484,084        91.6  %      962,073          420,876        128.6 % acquired loan losses Non-acquired loans        2,629,897        2,576,545        2,528,753        2,497,478        2,456,069      7.1   %      2,603,368        2,456,075      6.0   % Total loans (1)           3,557,417        3,573,555        3,111,479        2,998,692        2,940,153      21.0  %      3,565,441        2,876,951      23.9  % FDIC receivable for loss share                114,724          139,172          162,580          194,116          219,183        -47.7 %      126,881          232,870        -45.5 % agreements Total investment          527,926          553,214          510,434          501,816          468,334        12.7  %      540,499          396,405        36.4  % securities Intangible assets         123,881          125,257          87,372           79,857           79,041         56.7  %      124,565          76,565         62.7  % Earning assets            4,496,341        4,489,187        3,972,280        3,766,889        3,703,552      21.4  %      4,492,784        3,537,629      27.0  % Total assets              5,069,993        5,117,003        4,517,076        4,331,436        4,295,369      18.0  %      5,093,368        4,126,643      23.4  % Noninterest-bearing       1,023,668        969,400          886,240          813,394          795,867        28.6  %      996,684          748,153        33.2  % deposits Interest-bearing          3,150,909        3,236,610        2,853,253        2,800,446        2,808,884      12.2  %      3,193,523        2,689,740      18.7  % deposits Total deposits            4,174,577        4,206,010        3,739,493        3,613,840        3,604,751      15.8  %      4,190,207        3,437,893      21.9  % Federal funds purchased and             297,025          319,602          247,970          223,844          215,678        37.7  %      308,251          222,389        38.6  % repurchase agreements Other borrowings          54,461           54,713           47,555           45,908           46,203         17.9  %      54,587           46,342         17.8  % Shareholders'             517,141          511,392          450,446          429,183          415,952        24.3  %      514,282          399,668        28.7  % equity   SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                       Second                         ENDING Balance                                                                       Quarter                         June 30,         March 31,        December 31,     September 30,    June 30,         2013 -                                                                                                              2012 BALANCE SHEET           2013             2013             2012             2012             2012             % HIGHLIGHTS                                                                                                   Change Loans held for sale     $ 47,980         $ 50,449         $ 65,279         $ 71,585         $ 42,525         12.8  % Acquired loans            921,840          995,255          1,074,742        520,991          560,058        64.6  % Non-acquired loans        2,665,595        2,604,298        2,571,003        2,517,352        2,481,251      7.4   % Total loans (1)           3,587,435        3,599,553        3,645,745        3,038,343        3,041,309      18.0  % FDIC receivable for loss share                104,048          124,340          146,171          174,321          200,569        -48.1 % agreements Total investment          531,579          533,255          560,091          500,587          511,138        4.0   % securities Intangible assets         123,352          124,668          125,801          79,391           79,971         54.2  % Allowance for acquired loan             (31,597    )     (31,277    )     (32,132    )     (31,138    )     (35,813    )   -11.8 % losses Allowance for non-acquired loan         (38,625    )     (41,669    )     (44,378    )     (46,439    )     (47,269    )   -18.3 % losses (1) Premises and              109,794          110,792          115,583          105,579          106,458        3.1   % equipment Total assets              5,043,078        5,141,929        5,136,446        4,325,232        4,373,269      15.3  % Noninterest-bearing       1,046,537        1,002,662        981,963          818,633          806,235        29.8  % deposits Interest-bearing          3,136,432        3,216,694        3,316,397        2,770,665        2,854,737      9.9   % deposits Total deposits            4,182,969        4,219,356        4,298,360        3,589,298        3,660,972      14.3  % Federal funds purchased and             262,447          328,701          238,621          226,330          220,264        19.2  % repurchase agreements Other borrowings          54,372           54,638           54,897           45,807           46,105         17.9  % Total liabilities         4,526,486        4,627,718        4,628,897        3,891,308        3,948,363      14.6  % Shareholders'             516,592          514,211          507,549          433,924          424,906        21.6  % equity                                                                                                               Common shares issued and                17,032,061       17,017,904       16,937,464       15,114,185       15,085,991     12.9  % outstanding                                                                                                                                                                                                                            Second                                                                                                              Quarter                         June 30,         March 31,        December 31,     September 30,    June 30,         2013 -                                                                                                              2012 NONPERFORMING                                                                                                % ASSETS (ENDING          2013             2013             2012             2012             2012             Change BALANCE) Non-acquired Non-acquired            $ 40,854         $ 42,945         $ 48,387         $ 46,295         $ 47,940         -14.8 % nonaccrual loans Restructured loans        11,689           13,636           13,151           12,882           9,530          22.7  % Other real estate owned ("OREO") not covered under FDIC        15,950           19,680           19,069           22,424           25,518         -37.5 % loss share agreements Accruing loans past       198              121              500              156              137            44.5  % due 90 days or more Other nonperforming      --             --             --             --             --          assets Total non-acquired nonperforming            68,691         76,382         81,107         81,757         83,125        -17.4 % assets Acquired (7) Acquired nonaccrual       --               --               --               --               -- loans OREO covered under FDIC loss share           35,142           34,244           34,257           47,063           53,146         -33.9 % agreements OREO not covered under FDIC loss           17,536           16,766           13,179           5,059            5,745          205.2 % share agreements Other nonperforming      --             26             44             57             73          assets Total acquired nonperforming            52,678         51,036         47,480         52,179         58,964        -10.7 % assets Total nonperforming     $ 121,369       $ 127,418       $ 128,587       $ 133,936       $ 142,089       -14.6 % assets                                                                                                               Excluding Acquired Assets Total nonperforming assets as a percentage of total      2.56       %    2.91       %    3.13       %    3.22       %    3.32       % non-acquired loans and repossessed assets (1) (4) Total nonperforming assets as a              1.36       %    1.49       %    1.58       %    1.89       %    1.90       % percentage of total assets (5) NPLs as a percentage of            1.98       %    2.18       %    2.41       %    2.36       %    2.32       % period end non-acquired loans Including Acquired Assets Total nonperforming assets as a percentage of total      3.32       %    3.47       %    3.46       %    4.31       %    4.55       % loans and repossessed assets (1) (4) Total nonperforming assets as a              2.41       %    2.48       %    2.50       %    3.10       %    3.25       % percentage of total assets NPLs as a percentage of            1.47       %    1.58       %    1.70       %    1.95       %    1.89       % period end loans                                                                                                               OTHER ASSET QUALITY INFORMATION Classified Assets (Ending Balance) (11) Classified loans        $ 107,671        $ 121,222        $ 124,133        $ 135,095        $ 135,099        -20.3 % OREO and other nonperforming             15,950           19,680           19,069           22,424           25,518         -37.5 % assets Total classified        $ 123,621       $ 140,902       $ 143,202       $ 157,519       $ 160,617       -23.0 % assets                                                                                                               Tier 1 capital and non-acquired            $ 494,562       $ 484,744       $ 477,686       $ 444,200       $ 436,964       13.2  % allowance for loan losses Classified assets as a percentage of Tier 1 capital and       25.00      %    29.07      %    29.98      %    35.46      %    36.76      % non-acquired allowance for loan losses                                                                                                               Non-acquired Loans      $ 10,957        $ 7,199         $ 7,189         $ 9,270         $ 10,464        4.7   % 30-89 Day Past Due   SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                            Second                                               Quarter Ended                                                                   Quarter    Six Months Ended           YTD                   June 30,        March 31,       December 31,    September 30,   June 30,        2013 -     June 30,     June 30,      2013 -                                                                                                   2012                                  2012 ALLOWANCE FOR                                                                                                                           % LOAN LOSSES       2013            2013            2012            2012            2012            % Change   2013         2012          Change (1) Non-acquired Loans: Balance at beginning of      $ 41,669        $ 44,378        $ 46,439        $ 47,269        $ 47,607        -12.5  %   $ 44,378     $ 49,367      -10.1 % period Loans charged       (2,827    )     (4,148    )     (4,291    )     (5,506    )     (5,114    )   -44.7  %     (6,975 )     (10,458 )   -33.3 % off Overdrafts          (393      )     (459      )     (446      )     (434      )     (441      )   -10.9  %     (852   )     (795    )   7.2   % charged off Loan                436             826             550             481             700           -37.7  %     1,262        2,124       -40.6 % recoveries Overdraft          140           219           131           129           125          12.0   %    359        341        5.3   % recoveries Net                 (2,644    )     (3,562    )     (4,056    )     (5,330    )     (4,730    )   -44.1  %     (6,206 )     (8,788  )   -29.4 % charge-offs Provision for loan losses on                 (400      )    853           1,995         4,500         4,392        -109.1 %    453        6,690      -93.2 % non-acquired loans Balance at end of period,            38,625        41,669        44,378        46,439        47,269       -18.3  %    38,625     47,269     -18.3 % non-acquired loans Acquired Loans: Balance at beginning of        31,277          32,132          31,138          35,812          34,355                     32,132       31,620 period Loans charged       --              --              --              --              --                         --           -- off Loan               --            --            --            --            --                       --         --       recoveries Net                 --              --              --              --              --                         --           -- charge-offs Provision for loan losses on acquired loans: Provision for loan losses before benefit             320             (855      )     994             (4,674    )     1,457                      (535   )     4,193 attributable to FDIC loss share agreements Benefit attributable to FDIC loss       259           1,062         (778      )    4,218         (1,208    )               1,322      (3,518  ) share agreements Net provision for loan losses on          579           207           216           (456      )    249                      787        675      acquired loans Provision for loan losses recorded through the        (259      )    (1,062    )    778           (4,218    )    1,208                    (1,322 )    3,518    FDIC loss share receivable Balance at end of period,            31,597        31,277        32,132        31,138        35,812                   31,597     35,813   acquired loans Balance at end of period, total     $ 70,222       $ 72,946       $ 76,510       $ 77,577       $ 83,081       -15.5  %   $ 70,222    $ 83,082     -15.5 % allowance for loan losses                                                                                                                                          Total provision for loan losses       $ 179          $ 1,060        $ 2,211        $ 4,044        $ 4,641                   $ 1,240     $ 7,365    charged to operations Allowance for non-acquired loan losses as a               1.45      %    1.60      %    1.73      %    1.84      %    1.91      %               1.45   %    1.91    % percentage of non-acquired loans (1) Allowance for loan losses as a               1.96      %    2.03      %    2.10      %    2.55      %    2.73      %               1.96   %    2.73    % percentage of total loans (1) Allowance for non-acquired loan losses as a               73.23     %    73.49     %    71.53     %    78.27     %    82.05     %               73.23  %    82.05   % percentage of non-acquired nonperforming loans Net charge-offs on non-acquired loans as a percentage of      0.40      %    0.56      %    0.64      %    0.85      %    0.77      %               0.48   %    0.72    % average non-acquired loans (annualized) (1)                                                                                                                                                                                                                                            Second                                                                                                   Quarter                   June 30,        March 31,       December 31,    September 30,   June 30,        2013 -                                                                                                   2012 LOAN PORTFOLIO         2013            2013            2012            2012            2012            % Change (ENDING balance) (1) Acquired          $ 239,082       $ 257,066       $ 282,728       $ 309,034       $ 332,874       -28.2  % covered loans Acquired non-covered         682,758         738,189         792,014         211,957         227,184       200.5  % loans Non-acquired loans: Commercial non-owner occupied real estate: Construction and land            285,370         273,488         273,420         273,606         279,519       2.1    % development Commercial non-owner          298,769       298,707       290,071       278,935       284,147      5.1    % occupied Total commercial non-owner           584,139         572,195         563,491         552,541         563,666       3.6    % occupied real estate Consumer real estate: Consumer owner               460,434         443,134         434,503         430,825         420,298       9.5    % occupied Home equity        250,988       249,356       255,284       255,677       257,061      -2.4   % loans Total consumer real       711,422         692,490         689,787         686,502         677,359       5.0    % estate Commercial owner               802,125         796,139         784,152         787,623         763,338       5.1    % occupied real estate Commercial and                 294,580         291,308         279,763         245,285         228,010       29.2   % industrial Other income producing           136,957         131,776         133,713         131,832         132,193       3.6    % property Consumer non        104,239         93,997          86,934          86,729          87,290        19.4   % real estate Other              32,133        26,393        33,163        26,840        29,395       9.3    % Total non-acquired       2,665,595     2,604,298     2,571,003     2,517,352     2,481,251    7.4    % loans Total loans (net of           $ 3,587,435    $ 3,599,553    $ 3,645,745    $ 3,038,343    $ 3,041,309    18.0   % unearned income) (1)                                                                                                                                          Loans held        $ 47,980       $ 50,449       $ 65,279       $ 71,585       $ 42,525       12.8   % for sale                                                                                                                                                 SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                                                                                                                                                                                                                   Quarter Ended                                                                                  Six Months Ended                        June 30,         March 31,        December 31,     September 30,    June 30,                   June 30,     June 30, SELECTED RATIOS        2013             2013             2012             2012             2012                       2013         2012                                                                                                                                                  Return on average assets                  0.99       %    0.84       %    0.52       %    0.83       %    0.75       %              0.92   %    0.73   % (annualized)                                                                                                                                                  Operating return on average assets       1.04       %    0.95       %    0.98       %    0.87       %    0.88       %              0.99   %    0.80   % (annualized) (non-GAAP) (3)                                                                                                                                                  Return on average equity                  9.72       %    8.45       %    5.22       %    8.40       %    7.77       %              9.09   %    7.58   % (annualized)                                                                                                                                                  Operating return on average equity       10.17      %    9.49       %    9.80       %    8.73       %    9.05       %              9.83   %    8.28   % (annualized) (non-GAAP) (3)                                                                                                                                                  Return on average tangible equity         13.48      %    11.92      %    6.91       %    10.74      %    9.92       %              12.71  %    9.80   % (annualized) (non-GAAP) (10)                                                                                                                                                  Net interest margin (tax             5.01       %    4.94       %    4.88       %    5.03       %    4.69       %              4.97   %    4.70   % equivalent)                                                                                                                                                  Efficiency ratio        69.49      %    72.37      %    80.95      %    66.91      %    68.34      %              70.92  %    70.07  % (tax equivalent)                                                                                                                                                  Operating efficiency ratio        63.79      %    64.47      %    62.84      %    58.96      %    60.84      %              64.13  %    63.40  % excluding OREO expense                                                                                                                                                  Book value per         $ 30.33         $ 30.22         $ 29.97         $ 28.71         $ 28.17       common share                                                                                                                                                  Tangible book value per common       $ 23.09         $ 22.89         $ 22.54         $ 23.46         $ 22.86       share (non-GAAP) (10)                                                                                                                                                  Common shares issued and              17,032,061     17,017,904     16,937,464     15,114,185     15,085,991  outstanding                                                                                                                                                  Equity-to-assets        10.24      %    10.00      %    9.88       %    10.03      %    9.72       %                                                                                                                                                  Tangible equity-to-tangible      7.99       %    7.76       %    7.62       %    8.35       %    8.03       % assets (non-GAAP) (10)                                                                                                                                                  Tier 1 leverage         9.2        %    8.8        %    9.8        %    9.3        %    9.2        % (9)                                                                                                                                                  Tier 1 risk-based       13.4       %    13.2       %    12.7       %    14.0       %    13.9       % capital (9)                                                                                                                                                  Total risk-based        14.7       %    14.4       %    13.9       %    15.2       %    15.1       % capital (9)                                                                                                                                                                                                                                                                                                                          Quarter Ended                                                                                  Six Months Ended                        June 30,         March 31,        December 31,     September 30,    June 30,                   June 30,     June 30, RECONCILIATION OF      2013             2013             2012             2012             2012                       2013         2012 NON-GAAP TO GAAP                                                                                                                                                  Pre-tax, Pre-provision Operating Earnings (6) Net income (GAAP)      $ 12,532         $ 10,649         $ 5,910          $ 9,063          $ 8,031          56.0  %   $ 23,181     $ 15,059     53.9  % Provision for loan       179              1,060            2,211            4,044            4,642          -96.1 %     1,239        7,365      -83.2 % losses (1) Provision for           6,173          5,174          2,552          4,938          4,097         50.7  %    11,347    7,638     48.6  % income taxes Pre-tax, pre-provision            18,884           16,883           10,673           18,045           16,770         12.6  %     35,767       30,062     19.0  % income Securities gains         --               --               (128       )     --               (61        )               --           (61    ) Merger and conversion related      860            1,963          7,552          568            1,998                    2,823      2,094   expense Pre-tax, pre-provision          $ 19,744        $ 18,846        $ 18,097        $ 18,613        $ 18,707        5.5   %   $ 38,590    $ 32,095    20.2  % operating earnings (non-GAAP)                                                                                                                                                  Operating efficiency ratio excluding OREO expense Operating efficiency ratio         63.79      %     64.47      %     62.84      %     58.96      %     60.84      %               64.13  %     63.40  % excluding OREO expense Effect to adjust for OREO and loan        4.37       %     4.84       %     5.41       %     6.95       %     3.86       %               4.60   %     4.65   % related expense Effect to adjust for merger and          1.33       %    3.06       %    12.70      %    1.00       %    3.64       %              2.19   %    2.02   % conversion expenses Efficiency ratio        69.49      %    72.37      %    80.95      %    66.91      %    68.34      %              70.92  %    70.07  % (Tax Equivalent)                                                                                                                                                  Operating Return of Average Assets (3) Operating return on average assets        1.04       %     0.95       %     0.98       %     0.87       %     0.88       %               0.99   %     0.80   % (non-GAAP) Effect to adjust for securities           0.00       %     0.00       %     0.01       %     0.00       %     0.00       %               0.00   %     0.00   % gains (losses) Effect to adjust for merger and          -0.05      %    -0.11      %    -0.47      %    -0.04      %    -0.13      %              -0.07  %    -0.07  % conversion related expenses Return on average       0.99       %    0.84       %    0.52       %    0.83       %    0.75       %              0.92   %    0.73   % assets (GAAP)                                                                                                                                                  Operating Return of Average Equity (3) Operating return on average equity        10.17      %     9.49       %     9.80       %     8.73       %     9.05       %               9.83   %     8.28   % (non-GAAP) Effect to adjust for securities           0.00       %     0.00       %     0.08       %     0.00       %     0.04       %               0.00   %     0.00   % gains (losses) Effect to adjust for merger and          -0.45      %    -1.04      %    -4.66      %    -0.33      %    -1.32      %              -0.74  %    -0.70  % conversion related expenses Return on average       9.72       %    8.45       %    5.22       %    8.40       %    7.77       %              9.09   %    7.58   % equity (GAAP)   SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                                                        Quarter Ended                                                                         Six Months Ended                         June 30,        March 31,     December     September 30,   June 30,                   June      June                                                       31,                                                     30,       30, RECONCILIATION OF NON-GAAP TO GAAP        2013            2013          2012         2012            2012                       2013      2012 (CONTINUED)                                                                                                                          Return on Average Tangible Equity (10) Return on average tangible equity           13.48     %      11.92  %      6.91  %     10.74     %      9.92   %                12.71 %   9.80  % (non-GAAP) Effect to adjust for intangible           -3.76     %     -3.47  %     -1.69 %    -2.34     %     -2.15  %                -3.62 %   -2.22 % assets Return on average        9.72      %     8.45   %     5.22  %    8.40      %     7.77   %                9.09  %   7.58  % equity (GAAP)                                                                                                                          Tangible Book Value Per Common Share (10) Tangible book value per common share        $ 23.09         $  22.89      $  22.54     $ 23.46         $  22.86 (non-GAAP) Effect to adjust for intangible           7.24           7.33        7.43      5.25           5.30    assets Book value per          $ 30.33        $  30.22     $  29.97    $ 28.71        $  28.17   common share (GAAP)                                                                                                                          Tangible Equity-to-Tangible Assets (10) Tangible equity-to-tangible        7.99      %      7.76   %      7.62  %     8.35      %      8.03   % assets (non-GAAP) Effect to adjust for intangible           2.25      %     2.24   %     2.26  %    1.68      %     1.69   % assets Equity-to-assets         10.24     %     10.00  %     9.88  %    10.03     %     9.72   % (GAAP)                                                                                                                                                                                                                                                                           Three Months Ended                         June 30, 2013                              June 30, 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       $ 370,958       $  444           0.48  %     265,462       $  279        0.42    % time deposits Investment securities                378,426          2,096         2.22  %     337,612          2,036      2.43    % (taxable) Investment securities                149,500          1,174         3.15  %     130,722          1,035      3.18    % (tax-exempt) Loans held for sale       40,040           337           3.38  %     29,604           276        3.75    % Acquired loans, net of allowance for          927,520          24,492        10.59 %     484,084          11,869     9.86    % acquired loan losses Non-acquired loans       2,629,901      28,987       4.42  %    2,456,069      29,975    4.91    % (1) Total interest-earning          4,496,345        57,530        5.13  %     3,703,553        45,470     4.94    % assets                                                                                                                          Noninterest-Earning Assets: Cash and due from         96,132                                     94,360 banks Other assets              519,059                                    545,170 Allowance for non-acquired loan        (41,543   )                               (47,714   ) losses Total noninterest-earning      573,648                                  591,816    assets Total Assets            $ 5,069,993                               $ 4,295,369                                                                                                                           Interest-Bearing Liabilities: Transaction and money market            $ 1,822,379     $  570           0.13  %   $ 1,548,083     $  840        0.22    % accounts Savings deposits          353,574          81            0.09  %     296,518          128        0.17    % Certificates and          974,957          812           0.33  %     964,284          1,303      0.54    % other time deposits Federal funds purchased and             297,025          115           0.16  %     215,678          110        0.21    % repurchase agreements Other borrowings         54,461         668          4.92  %    46,203         555       4.83    % Total interest-bearing          3,502,396        2,246         0.26  %     3,070,766        2,936      0.38    % liabilities                                                                                                                          Noninterest-Bearing Liabilities: Demand deposits           1,023,668                                  795,867 Other liabilities        26,788                                   12,784     Total noninterest-bearing       1,050,456                                  808,651 liabilities ("Non-IBL") Shareholders'            517,141                                  415,952    equity Total Non-IBL and shareholders'            1,567,597                                1,224,603  equity Total liabilities and shareholders'       $ 5,069,993                               $ 4,295,369  equity                                                                                    Net interest income and margin (NON-TAX                     $  55,284      4.93  %                   $  42,534    4.62    % EQUIV.) Net interest margin                                     5.01  %                                 4.69    % (TAX EQUIVALENT)   SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                                                                   Six Months Ended                         June 30, 2013                              June 30, 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       $ 341,245       $ 862            0.51  %   $ 232,436       $  491        0.42    % time deposits Investment securities                386,626         4,257          2.22  %     300,326          3,727      2.50    % (taxable) Investment securities                153,873         2,381          3.12  %     96,079           1,574      3.29    % (tax-exempt) Loans held for sale       45,597          719            3.18  %     31,838           598        3.78    % Acquired loans, net of allowance for          962,073         47,862         10.03 %     420,876          20,979     10.02   % acquired loan losses Non-acquired loans       2,603,370     57,618        4.46  %    2,456,075      60,321    4.94    % (1) Total interest-earning          4,492,784       113,699        5.10  %     3,537,630        87,690     4.98    % assets                                                                                                                                      Noninterest-Earning Assets: Cash and due from         108,002                                    93,284 banks Other assets              535,514                                    544,244 Allowance for non-acquired loan        (42,932   )                               (48,515   ) losses Total noninterest-earning      600,584                                  589,013    assets Total Assets            $ 5,093,368                               $ 4,126,643                                                                                                                                       Interest-Bearing Liabilities: Transaction and money market            $ 1,837,306     $ 1,176          0.13  %   $ 1,489,451     $  1,847      0.25    % accounts Savings deposits          351,781         162            0.09  %     282,384          275        0.20    % Certificates and          1,004,436       1,686          0.34  %     917,908          2,643      0.58    % other time deposits Federal funds purchased and             308,251         251            0.16  %     222,389          236        0.21    % repurchase agreements Other borrowings         54,587        1,340         4.95  %    46,342         1,116     4.84    % Total interest-bearing          3,556,361       4,615          0.26  %     2,958,474        6,117      0.42    % liabilities                                                                                                                                      Noninterest-Bearing Liabilities: Demand deposits           996,684                                    748,152 Other liabilities        26,041                                   20,349     Total noninterest-bearing       1,022,725                                  768,501 liabilities ("Non-IBL") Shareholders'            514,282                                  399,668    equity Total Non-IBL and shareholders'            1,537,007                                1,168,169  equity Total liabilities and shareholders'       $ 5,093,368                               $ 4,126,643  equity                                                                                    Net interest income and margin (NON-TAX                     $ 109,084      4.90  %                   $  81,573    4.64    % EQUIV.) Net interest margin                                     4.97  %                                 4.70    % (TAX EQUIVALENT)                                                                                                                                                                                                                                                                           SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                  Second                         Three Months Ended                                                       Quarter      Six Months Ended      YTD                         June 30,        March 31,     December     September 30,   June 30,      2013 -       June 30,              2013 -                                                       31,                                        2012                               2012 NONINTEREST INCOME      2013            2013          2012         2012            2012          % Change     2013       2012       % Change & EXPENSE Noninterest income:                                                                                                                                         % Service charges on      $ 5,736         $ 5,761       $  6,313     $ 6,169         $  5,886      -2.5    %     11,497     11,333    1.4 *Story deposit accounts                                                                                                                        too                                                                                                                                         large*  [TRUNCATED]