First Financial Holdings, Inc. Reports Record Third Quarter 2013 Operating Income of $18.8 Million

  First Financial Holdings, Inc. Reports Record Third Quarter 2013 Operating   Income of $18.8 Million                         Declares Quarterly Cash Dividend  Business Wire  COLUMBIA, S.C. -- October 29, 2013  First Financial Holdings, Inc. (NASDAQ: SCBT) today released its unaudited results of operations and other financial information for the three-month and nine-month periods ended September 30, 2013. Highlights of the third quarter 2013 include the following:    *Net income of $11.5 million, or $0.52 diluted EPS in 3Q 2013 compared to     $12.5 million, or $0.74 diluted EPS in 2Q 2013 and $9.1 million, or $0.60     diluted EPS in 3Q 2012;   *Operating earnings of $18.8 million, which exclude merger expense and     include preferred stock dividends, or $0.85 diluted EPS in 3Q 2013     compared to $13.1 million, or $0.77 diluted EPS in 2Q 2013 and $9.4     million, or $0.63 diluted EPS in 3Q 2012;   *On July 26, 2013, closed the merger transaction between SCBT Financial     Corporation and the former First Financial Holding, Inc. (FFCH);   *Return on average assets was 0.66% annualized in 3Q 2013 compared to 0.99%     in 2Q 2013 and 0.83% in 3Q 2012; Operating return on average assets was     1.07% annualized in 3Q 2013 compared to 1.04% in 2Q 2013 and 0.87% in 3Q     2012;   *Net charge-offs of non-acquired loans increased to 0.45% annualized in 3Q     ^  2013, compared to 0.40% annualized in 2Q 2013 and decreased from 0.85%     annualized in 3Q 2012;   *Non-acquired non-performing assets (NPAs): 2.40% of total non-acquired     loans and repossessed assets for 3Q 2013 compared to 2.56% for 2Q 2013 and     3.22% for 3Q 2012; and   *Legacy loan growth was $75.6 million or 11.3% annualized during 3Q 2013.  Quarterly Cash Dividend  The Board of Directors of First Financial Holdings, Inc. has declared a quarterly cash dividend of $0.19 per share payable on its common stock, and is 11.8% higher than the dividend paid in the third quarter of 2012. This per share amount is the same as the dividend paid in the immediately preceding quarter and will be payable on November 22, 2013 to shareholders of record as of November 15, 2013.  Third 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 $11.5 million, or $0.52 per diluted share for the three months ended September 30, 2013 down from $12.5 million, or $0.74 per diluted share for the three months ended June 30, 2013. Driving this decrease from the second quarter was the following:    *a significant increase in noninterest expense (due to merger cost and FFCH     operating cost for 66 days of the quarter);   *an increase in our effective tax rate from 33.0% to 36.1% driven by     certain nondeductible merger related expenses; partially offset by   *an increase in noninterest income (FFCH since closing); and   *an increase in net interest income (FFCH since closing).  “We are pleased to report record operating earnings in the first quarter of combined operations following a major acquisition,” said Robert R Hill, Jr, CEO of First Financial Holdings, Inc. “Our company experienced solid organic growth and continued to add talented bankers to our team. We are also pleased with the strength of our capital position, the pace of integration, and the opportunities to further improve EPS in the coming quarters. This quarter demonstrates the strength of our recent merger both financially and strategically.”  Asset Quality  During the third quarter of 2013, SCBT continued to see improvement in asset quality with non-acquired nonperforming assets (NPAs) falling to 2.40% of total non-acquired loans and repossessed assets, as non-acquired NPAs declined by $2.5 million, compared to the second quarter of 2013 when the ratio was 2.56%. In addition, classified assets declined by $12.2 million to $111.4 million and 30-89 day past due loans declined by $2.4 million during the third quarter of 2013 as compared to the second quarter of 2013, which excludes any of the acquisitions.  At September 30, 2013, the allowance for non-acquired loan losses was $36.1 million or 1.32% of non-acquired period-end loans. The current allowance for loan losses provides 0.73 times coverage of period-end non-acquired nonperforming loans, which was equal to the same result at the end of the second quarter of 2013. Net charge-offs within the non-acquired portfolio were $3.0 million for the quarter or 0.45% annualized, up slightly from the second quarter of 2013 of $2.6 million or 0.40% annualized and down from the third quarter of 2012 of $5.3 million or 0.85% annualized. OREO costs increased to $3.5 million during the quarter, up from the second quarter amount of $2.8 million. This increase was the result of additional cost related to the 90 properties of OREO added from the FFCH merger. During the quarter, there were two properties with write-downs totaling $738,000 of the total write downs of $1.2 million. An additional 20 properties had write downs totaling $443,000.  Net Interest Income and Margin  Non-taxable equivalent net interest income was $79.7 million for the third quarter of 2013, a $24.4 million increase from the second quarter, resulting from the following:  1.Interest income increased by approximately $26.2 million primarily from     the addition of FFCH’s average interest-earning assets of approximately     $1.7 billion; 2.Offset by additional funding cost of $1.8 million, for deposits and other     borrowings acquired in the FFCH merger. Interest-bearing liabilities     increased by approximately $1.5 billion;  Tax-equivalent net interest margin increased 8 basis points from the third quarter of 2012 and 10 basis point from the second quarter of 2013 to 5.11%. The Company’s average yield on interest-earning assets increased 18 basis points while the average rate on interest-bearing liabilities increased 6 basis points from the second quarter of 2013. During the third quarter of 2013, the Company’s average total assets increased to approximately $7.2 billion and average earning assets increased to $6.3 billion. The growth in average earning assets was supported by growth in average interest-bearing liabilities of more than $1.5 billion.  Noninterest Income and Expense  Noninterest income was $15.3 million in the third quarter of 2013, up $6.8 million from the second quarter of 2013 and up $6.1 million from third quarter of 2012. Customer-oriented noninterest income (includes service charges, bankcard services, and trust and investment services) saw a significant $6.5 million increase due to the merger with FFCH during the quarter. The increases were partially offset by lower mortgage banking income due to the decline in the mortgage pipeline and reduced gains from loans sold in the secondary market, and a decline in the fair value of the hedges related to mortgage banking activity. In addition the negative accretion on the FDIC indemnification asset in the third quarter was $7.6 million, $315,000 more than the second quarter of 2013 and $1.0 million more than the third quarter of 2012. The increases in negative accretion were the result of the reduction of expected cash flows from the indemnification asset related to certain pools of acquired loans which had improved estimated cash flows. Other noninterest income increased from the second quarter of 2013 by $1.1 million, due primarily to an increase in recoveries from acquired assets and from the contribution related to the FFCH merger (including increases in cash surrender value of bank owned life insurance, rental income, and credit card fees).  Noninterest expense was $75.4 million in the third quarter of 2013, up from $30.5 million from the second quarter. This increase from the second quarter of 2013 was primarily due to $18.7 million of operational cost from the FFCH merger, $9.5 million in merger-related expense, and $2.4 million increase in salaries and employee benefits. The efficiency ratio for the quarter was 78.7%, up from 69.5% in the second quarter. Our operational efficiency ratio, which excludes merger expenses and OREO related expenses, was 64.3% compared to 63.8% in the second quarter.  FFCH Merger  On July 26, 2013, SCBT Financial Corporation acquired First Financial Holdings, Inc. and changed its name to First Financial Holdings, Inc. Below is a summary:    *The total purchase price paid was $447.0 million. 7,018,274 common shares     of SCBT were issued at a price of $54.34 per share and SCBT assumed the     preferred stock outstanding of $65.0 million.   *These shares were outstanding approximately 71.7% of the days in the     quarter and increased the weighted average shares outstanding by     approximately 5.1 million shares.   *Total goodwill has been preliminarily determined to be $217.9 million, and     other amortizing intangibles totaled $40.8 million.   *Total fair value of assets acquired equaled $3.086 billion and total fair     value of liabilities assumed equaled $2.857 billion.   *At closing, all Federal Home Loan Bank (FHLB) advances assumed and     totaling $255.9 million, which included a $21.8 million prepayment fee and     unpaid interest of $1.1 million, were repaid to the FHLB. The prepayment     fee was treated as a fair value adjustment in the acquisition of FFCH.   *During the quarter, more than $175.3 million in securities were sold that     were acquired from FFCH. These included Private Label CMOs, Agency MBS,     Municipal Bonds, and Trust Preferred CDOs. No gain or loss was recorded on     the disposition of these securities.  Balance Sheet and Capital  At the end of the third quarter of 2013, SCBT’s total assets were $8.0 billion, up from $5.0 billion at June 30, 2013, related primarily to the acquisition of FFCH. Since September 30, 2012, the company’s balance sheet has grown by more than $3.7 billion, or 85.6%, due primarily to the fourth quarter 2012 closing of the Savannah acquisition and the current quarter acquisition of FFCH. The asset growth was spread among all asset categories, except FDIC receivable from loss share agreements and loans held for sale. The asset growth was supported primarily by $1.749 billion increase in core deposit growth, $46.5 million in increased trust preferred borrowings, and $446.4 million in additional capital from the acquisition of FFCH.  Book value per share increased to $40.31 compared to $30.33 at June 30, 2013, while tangible common equity per share declined to $21.76 from $23.09 at June 30, 2013. The increase in book value was the result of the merger with FFCH and the closing price of $54.34 per share. The decline in tangible common equity per share was the result of the fair value adjustments recorded for assets and liabilities in the acquisition of FFCH. In addition, tangible common equity to tangible assets equaled 6.85% at third quarter end down from 7.99% at the end of the second quarter.  The company’s Tier 1 leverage ratio is estimated to increase from 9.2% to slightly more than 10.0% at September 30, 2013. This is the result of an increased capital base relative to the average asset base from FFCH being included for approximately 70% of the quarter. The Company’s capital position remains “well-capitalized” by all measures at September 30, 2013.  “We are very pleased with the combination of SCBT and FFCH, and the actions taken during the quarter to reposition our balance sheet. Paying off FHLB advances, rebalancing the investment securities portfolio, continuing to reduce certificate of deposit balances, and establishing a $30.0 million line of credit at the bank holding company, which closed on Monday, positions our balance sheet for the future,” said John C. Pollok, COO and CFO. “Our loan portfolio continues to improve as our exposure declines in certain risky assets, as evident by the continued decline in commercial real estate lending and in classified assets.”  SCBT Financial Corporation will hold a conference call on October 29^th at 11 a.m. ET during which management will review earnings and performance trends. Callers wishing to participate may call toll-free by dialing 877-317-6016. The number for international participants is 412-317-6016. The conference ID number is 10034564. Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com. A replay will be available beginning October 29^th by 2:00 p.m. ET until 9:00 a.m. on November 15th. To listen to the replay, dial 877-344-7529 or 412-317-0088. The pass code is 10034564.  First Financial Holdings, Inc., (SCBT) 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, Community Bank & Trust, The Savannah Bank, and First Federal. The Bankalso operates Minis & Co., Inc. and First Southeast 401k Fiduciaries, both wholly owned registered investment advisors; and First Southeast Investor Services, a wholly owned broker dealer. Providing financial services for over 79 years, First Financial Holdings, Inc. operates 146 locations in 19 South Carolina counties, 12 Georgia counties, and 4 North Carolina counties. First Financial Holdings, Inc. has assets of approximately $8.0 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.  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 Section 21E of the Securities Exchange Act of 1934. Forward looking statements generally include words such as “expects,” “projects,” “anticipates,” “believes,” “intends,” “estimates,” “strategy,” “plan,” “potential,” “possible” and other similar expressions. The Company cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from anticipated results. Such risks and uncertainties, include, among others, the following possibilities: (1) the outcome of any legal proceedings instituted against the Company; (2) credit risks associated with an obligor’s failure to meet the terms of any contract with the bank or otherwise fail to perform as agreed under the terms of any loan-related document; (3) interest risk involving the effect of a change in interest rates on the bank’s earnings, the market value of the bank’s loan and securities portfolios, and the market value of the Company’s equity; (4) liquidity risk affecting the bank’s ability to meet its obligations when they come due; (5) risks associated with an anticipated increase in the Company’s investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities the Company desires to acquire are not available on terms acceptable to the Company; (6) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (7) transaction risk arising from problems with service or product delivery; (8) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (9) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, increased capital requirements (including, without limitation, the impact of the capital rules adopted to implement Basel III), Consumer Financial Protection Bureau rules and regulations, and potential changes in accounting principles relating to loan loss recognition; (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 potentially resulting in deterioration in the credit markets, greater than expected non-interest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential negative economic developments resulting from federal spending cuts and/or one or more federal budget-related impasses or actions; (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, without limitation, mergers with The Savannah Bancorp, Inc. (“Savannah”) and First Financial Holdings, Inc. (“FFCH”), within the expected time frame; (18) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with merger and acquisition integration, including, without limitation, with respect to Savannah and FFCH, and 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, the Company’s performance and other factors; and (21) other risks and uncertainties disclosed in the Company’s most recent Annual Report on Form 10-K filed with the SEC or disclosed in documents filed or furnished by the Company with or to the SEC after the filing of such Annual report on Form 10-K, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward looking statements. The Company undertakes no obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise.       SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                                                                                                                                                                           Third                       Three Months Ended                                                                   Quarter    Nine Months Ended                 YTD                       September 30,    June 30,         March 31,        December 31,     September 30,    2013 -     September 30,                     2013 -                                                                                                            2012                                         2012 EARNINGS SUMMARY                                                                                                                                        % (non tax              2013             2013             2013             2012             2012             % Change   2013             2012             Change equivalent) Interest income       $ 83,700         $ 57,530         $ 56,169         $ 50,263         $ 49,535         69.0   %   $ 197,399        $ 137,225        43.9  % Interest expense       4,029          2,246          2,368          2,351          2,625         53.5   %    8,643         8,743         -1.1  % Net interest income     79,671           55,284           53,801           47,912           46,910         69.8   %     188,756          128,482        46.9  % Provision for loan      659              179              1,060            2,211            4,044          -83.7  %     1,898            11,408         -83.4 % losses (1) Noninterest income      15,265           8,485            9,523            10,900           9,166          66.5   %     33,273           30,383         9.5   % Noninterest expense    75,419         44,885         46,441         48,139         38,031        98.3   %    166,745       110,760       50.5  % Income before provision for           18,858           18,705           15,823           8,462            14,001         34.7   %     53,386           36,697         45.5  % income taxes Provision for          6,804          6,173          5,174          2,552          4,938         37.8   %    18,151        12,576        44.3  % income taxes Net income              12,054           12,532           10,649           5,910            9,063          33.0   %     35,235           24,121         46.1  % Preferred stock        542            --             --             --             --                        542            --          dividends Net income available to common   $ 11,512        $ 12,532        $ 10,649        $ 5,910         $ 9,063         27.0   %   $ 34,693        $ 24,121        43.8  % shareholders (GAAP)                                                                                                                                                          Effective tax rate      36.08      %     33.00      %     32.70      %     30.16      %     35.27      %                34.00      %     34.27      %                                                                                                                                                          Basic weighted-average        21,893,528       16,790,167       16,787,487       15,320,472       14,920,423     46.7   %     18,517,610       14,484,214     27.8  % common shares Diluted weighted-average        22,127,979       16,989,818       16,954,039       15,446,778       15,043,067     47.1   %     18,717,181       14,573,097     28.4  % common shares                                                                                                                                                          Earnings per common   $ 0.53           $ 0.75           $ 0.63           $ 0.39           $ 0.61           -13.1  %   $ 1.87           $ 1.67           12.0  % share - Basic Earnings per common     0.52             0.74             0.63             0.38             0.60           -13.3  %     1.85             1.66           11.4  % share - Diluted                                                                                                                                                          Cash dividends declared per common   $ 0.19           $ 0.18           $ 0.18           $ 0.18           $ 0.17           11.8   %   $ 0.55           $ 0.51           7.8   % share Dividend payout         39.71      %     24.46      %     28.75      %     46.06      %     28.33      %   40.2   %     30.84      %     31.18      %   -1.1  % ratio (2)                                                                                                                                                          Operating Earnings (non-GAAP) (3) Net income (GAAP)     $ 12,054         $ 12,532         $ 10,649         $ 5,910          $ 9,063          33.0   %   $ 35,235         $ 24,121         46.1  % Securities (gains)      --               --               --               (89        )     --                          --               -- losses, net of tax Merger and conversion related     7,326          576            1,321          5,274          357           1954.1 %    9,224          1,744       expense, net of tax Net operating earnings (loss)         19,380           13,108           11,970           11,095           9,420          105.7  %     44,459           25,865         71.9  % (non-GAAP) Preferred stock        542            --             --             --             --                        542            --          dividends Net operating earnings (loss) available to common   $ 18,838        $ 13,108        $ 11,970        $ 11,095        $ 9,420         100.0  %   $ 43,917        $ 25,865        69.8  % shareholders (non-GAAP)                                                                                                                                                          Operating earnings (loss) per common     $ 0.86           $ 0.78           $ 0.71           $ 0.72           $ 0.63           36.5   %   $ 2.37           $ 1.79           32.4  % share - Basic Operating earnings (loss) per common       0.85             0.77             0.71             0.72             0.63           34.9   %     2.35             1.77           32.8  % share - Diluted                                                                                                               Third                       AVERAGE for Quarter Ended                                                            Quarter    AVERAGE for Nine Months           YTD                       September 30,    June 30,         March 31,        December 31,     September 30,    2013 -     September 30,    September 30,    2013 -                                                                                                            2012                                         2012 BALANCE SHEET         2013             2013             2013             2012             2012             % Change   2013             2012             % HIGHLIGHTS                                                                                                                                              Change Loans held for sale   $ 53,204         $ 40,040         $ 51,216         $ 60,183         $ 56,300         -5.5   %   $ 48,161         $ 40,052         20.2  % Acquired loans, net of allowance for        2,427,583        927,520          997,010          582,726          501,214        384.3  %     1,457,036        447,851        225.3 % acquired loan losses Non-acquired loans      2,698,580        2,629,897        2,576,545        2,528,753        2,497,478      8.1    %     2,634,362        2,469,977      6.7   % Total loans (1)         5,126,163        3,557,417        3,573,555        3,111,479        2,998,692      70.9   %     4,091,398        2,917,828      40.2  % FDIC receivable for loss share              116,849          114,724          139,172          162,580          194,116        -39.8  %     123,500          219,858        -43.8 % agreements Total investment        656,658          527,926          553,214          510,434          501,817        30.9   %     579,646          431,799        34.2  % securities Intangible assets       308,730          123,881          125,257          87,372           79,708         287.3  %     186,628          77,621         140.4 % Earning assets          6,254,128        4,496,341        4,489,187        3,972,280        3,766,889      66.0   %     5,086,351        3,614,606      40.7  % Total assets            7,214,418        5,069,993        5,117,003        4,517,076        4,331,436      66.6   %     5,808,156        4,195,406      38.4  % Noninterest-bearing     1,359,137        1,023,668        969,400          886,240          813,394        67.1   %     1,115,407        770,059        44.8  % deposits Interest-bearing        4,626,023        3,150,909        3,236,610        2,853,253        2,800,446      65.2   %     3,679,676        2,726,912      34.9  % deposits Total deposits          5,985,160        4,174,577        4,206,010        3,739,493        3,613,840      65.6   %     4,795,083        3,496,971      37.1  % Federal funds purchased and           251,551          297,025          319,602          247,970          223,844        12.4   %     289,143          222,877        29.7  % repurchase agreements Other borrowings        93,849           54,461           54,713           47,555           45,908         104.4  %     67,818           46,196         46.8  % Shareholders' common equity           790,554          517,141          511,392          450,446          429,183        84.2   %     607,385          409,576        48.3  % (excludes preferred stock) Shareholders'           837,185          517,141          511,392          450,446          429,183        95.1   %     623,099          409,576        52.1  % equity        SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                       Third                       ENDING Balance                                                                       Quarter                       September 30,    June 30,         March 31,        December 31,     September 30,    2013 -                                                                                                            2012 BALANCE SHEET         2013             2013             2013             2012             2012             % HIGHLIGHTS                                                                                                 Change Loans held for sale   $ 52,467         $ 47,980         $ 50,449         $ 65,279         $ 71,585         -26.7 % Acquired loans          3,013,103        921,840          995,255          1,074,742        520,991        478.3 % Non-acquired loans      2,741,242        2,665,595        2,604,298        2,571,003        2,517,352      8.9   % Total loans (1)         5,754,345        3,587,435        3,599,553        3,645,745        3,038,343      89.4  % FDIC receivable for loss share              115,773          104,048          124,340          146,171          174,321        -33.6 % agreements Total investment        652,610          531,579          533,255          560,091          500,587        30.4  % securities Intangible assets       381,375          123,352          124,668          125,801          79,391         380.4 % Allowance for acquired loan           (31,141    )     (31,597    )     (31,277    )     (32,132    )     (31,138    )   0.0   % losses Allowance for non-acquired loan       (36,145    )     (38,625    )     (41,669    )     (44,378    )     (46,439    )   -22.2 % losses (1) Premises and            184,959          109,794          110,792          115,583          105,579        75.2  % equipment Total assets            8,028,441        5,043,078        5,141,929        5,136,446        4,325,232      85.6  % Noninterest-bearing     1,481,791        1,046,537        1,002,662        981,963          818,633        81.0  % deposits Interest-bearing        5,181,315        3,136,432        3,216,694        3,316,397        2,770,665      87.0  % deposits Total deposits          6,663,106        4,182,969        4,219,356        4,298,360        3,589,298      85.6  % Federal funds purchased and           233,792          262,447          328,701          238,621          226,330        3.3   % repurchase agreements Other borrowings        101,347          54,372           54,638           54,897           45,807         121.2 % Total liabilities       7,058,415        4,526,486        4,627,718        4,628,897        3,891,308      81.4  % Shareholders' common equity           905,026          516,592          514,211          507,549          433,924        108.6 % (excludes preferred stock) Shareholders'           970,026          516,592          514,211          507,549          433,924        123.5 % equity                                                                                                             Common shares issued and              24,066,545       17,032,061       17,017,904       16,937,464       15,114,185     59.2  % outstanding                                                                                                               Third                       ENDING Balance                                                                       Quarter                       September 30,    June 30,         March 31,        December 31,     September 30,    2013 -                                                                                                            2012 NONPERFORMING                                                                                              % ASSETS (ENDING        2013             2013             2013             2012             2012             Change BALANCE) (7) Non-acquired Non-acquired          $ 38,631         $ 40,854         $ 42,945         $ 48,387         $ 46,295         -16.6 % nonaccrual loans Restructured loans      10,837           11,689           13,636           13,151           12,882         -15.9 % Non-acquired other real estate owned       16,555           15,950           19,680           19,069           22,424         -26.2 % ("OREO") Accruing loans past     122              198              121              500              156            -21.8 % due 90 days or more Other nonperforming    --             --             --             --             --          assets Total non-acquired nonperforming          66,145         68,691         76,382         81,107         81,757        -19.1 % assets ASC Topic 310-20 Acquired Loans Acquired nonaccrual     --               --               --               --               -- loans Acquired accruing loans past due 90      --             --             --             --             --          days or more Total ASC Topic 310-20 acquired        --             --             --             --             --          loans Acquired OREO and other nonperforming assets OREO covered under FDIC loss share         40,543           35,142           34,244           34,257           47,063         -13.9 % agreements OREO not covered under FDIC loss         18,775           17,536           16,766           13,179           5,059          271.1 % share agreements Other nonperforming    718            -              26             44             57          assets Total acquired Acquired OREO and      60,036         52,678         51,036         47,480         52,179        15.1  % other nonperforming assets Total acquired nonperforming          60,036         52,678         51,036         47,480         52,179        15.1  % assets Total nonperforming   $ 126,181       $ 121,369       $ 127,418       $ 128,587       $ 133,936       -5.8  % assets                                                                                                             Excluding Acquired Assets NPLs as a percentage of          1.81       %    1.98       %    2.18       %    2.41       %    2.36       % period end non-acquired loans Total nonperforming assets as a percentage of total    2.40       %    2.56       %    2.91       %    3.13       %    3.22       % non-acquired loans and repossessed assets (1)(4) Total nonperforming assets as a            0.82       %    1.36       %    1.49       %    1.58       %    1.89       % percentage of total assets (5) Including ASC Topic 310-20 Acquired Loans and Acquired OREO NPLs as a percentage of          1.81       %    1.98       %    2.18       %    2.41       %    2.36       % period end loans Total nonperforming assets as a percentage of total    3.08       %    3.19       %    3.53       %    3.62       %    3.41       % loans and repossessed assets (1)(4) Total nonperforming assets as a            1.07       %    1.71       %    1.81       %    1.84       %    2.01       % percentage of total assets Including All Acquired Assets NPLs as a percentage of          0.86       %    1.47       %    1.58       %    1.70       %    1.95       % period end loans Total nonperforming assets as a percentage of total    2.16       %    3.32       %    3.47       %    3.46       %    4.31       % loans and repossessed assets (1)(4) Total nonperforming assets as a            1.57       %    2.41       %    2.48       %    2.50       %    3.10       % percentage of total assets        SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                  Third                                              ENDING Balance                                                        Quarter                 September     June 30,      March 31,     December      September     2013 -                 30,                                       31,           30,           2012 OTHER ASSET                                                                           % QUALITY         2013          2013          2013          2012          2012          Change INFORMATION Classified Assets (Ending Balance) (11) Classified      $ 94,820      $ 107,671     $ 121,222     $ 124,133     $ 135,095     -29.8 % loans OREO and other            16,555      15,950      19,680      19,069      22,424     -26.2 % nonperforming assets Total classified      $ 111,375    $ 123,621    $ 140,902    $ 143,202    $ 157,519    -29.3 % assets                                                                                                                              Tier 1 capital and non-acquired    $ 725,471    $ 494,562    $ 484,744    $ 477,686    $ 444,200    63.3  % allowance for loan losses Classified assets as a percentage of Tier 1           15.35   %    25.00   %    29.07   %    29.98   %    35.46   % capital and non-acquired allowance for loan losses                                                                                                                              Non-acquired Loans 30-89     $ 8,543      $ 10,957     $ 7,199      $ 7,189      $ 9,270      -7.8  % Day Past Due                                                                                                                                                                                                                                                                                                                                                 Third                 Quarter Ended                                                         Quarter   Nine Months Ended           YTD                 September                                 December      September     2013      September     September     2013 -                 30,           June 30,      March 31,     31,           30,           -         30,           30,           2012                                                                                       2012 ALLOWANCE FOR                                                                         %                                     % LOAN LOSSES     2013          2013          2013          2012          2012          Change    2013          2012          Change (1) Non-acquired Loans: Balance at beginning of    $ 38,625      $ 41,669      $ 44,378      $ 46,439      $ 47,269      -18.3 %   $ 44,378      $ 49,367      -10.1 % period Loans charged     (3,815  )     (2,827  )     (4,148  )     (4,291  )     (5,506  )   -30.7 %     (10,790 )     (15,965 )   -32.4 % off Overdrafts        (479    )     (393    )     (459    )     (446    )     (434    )   10.4  %     (1,331  )     (1,228  )   8.4   % charged off Loan              1,095         436           826           550           481         127.7 %     2,357         2,605       -9.5  % recoveries Overdraft        154         140         219         131         129        19.4  %    513         470        9.1   % recoveries Net               (3,045  )     (2,644  )     (3,562  )     (4,056  )     (5,330  )   -42.9 %     (9,251  )     (14,118 )   -34.5 % charge-offs Provision for loan losses on               565         (400    )    853         1,995       4,500      -87.4 %    1,018       11,190     -90.9 % non-acquired loans Balance at end of period,          36,145      38,625      41,669      44,378      46,439     -22.2 %    36,145      46,439     -22.2 % non-acquired loans ASC Topic 310-30 acquired Loans: Balance at beginning of      31,597        31,277        32,132        31,138        35,812                  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           (456    )     320           (855    )     994           (4,674  )               (991    )     (482    ) attributable to FDIC loss share agreements Benefit attributable to FDIC loss     550         259         1,062       (778    )    4,218                 1,871       700      share agreements Net provision for loan losses on        94          579         207         216         (456    )              880         218      acquired loans Provision for loan losses recorded through the      (550    )    (259    )    (1,062  )    778         (4,218  )              (1,871  )    (700    ) FDIC loss share receivable Balance at end of period, ASC      31,141      31,597      31,277      32,132      31,138                31,141      31,138   Topic 310-30 acquired loans Balance at end of period, total   $ 67,286     $ 70,222     $ 72,946     $ 76,510     $ 77,577     -13.3 %   $ 67,286     $ 77,577     -13.3 % allowance for loan losses                                                                                                                              Total provision for loan losses     $ 659        $ 179        $ 1,060      $ 2,211      $ 4,044                $ 1,898      $ 11,408   charged to operations Allowance for non-acquired loan losses as a             1.32    %    1.45    %    1.60    %    1.73    %    1.84    %              1.32    %    1.84    % percentage of non-acquired loans (1) Allowance for loan losses as a             1.17    %    1.96    %    2.03    %    2.10    %    2.55    %              1.17    %    2.55    % percentage of total loans (1) Allowance for non-acquired loan losses as a             72.89   %    73.23   %    73.49   %    71.53   %    78.27   %              72.89   %    78.27   % percentage of non-acquired nonperforming loans Net charge-offs on non-acquired loans as a percentage of    0.45    %    0.40    %    0.56    %    0.64    %    0.85    %              0.47    %    0.76    % average non-acquired loans (annualized) (1)        SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                     Third                                    ENDING Balance                                                                       Quarter                      September 30,    June 30,         March 31,        December 31,     September 30,    2013 -                                                                                                           2012 LOAN PORTFOLIO                                                                                            % (ENDING balance)     2013             2013             2013             2012             2012             Change (1) Acquired loans         3,013,103        921,840          995,255          1,074,742        520,991        478.3 % Non-acquired loans: Commercial non-owner occupied real estate: Construction and       288,199          285,370          273,488          273,420          273,606        5.3   % land development Commercial            282,678        298,769        298,707        290,071        278,935       1.3   % non-owner occupied Total commercial non-owner occupied     570,877          584,139          572,195          563,491          552,541        3.3   % real estate Consumer real estate: Consumer owner         498,734          460,434          443,134          434,503          430,825        15.8  % occupied Home equity loans     255,291        250,988        249,356        255,284        255,677       -0.2  % Total consumer         754,025          711,422          692,490          689,787          686,502        9.8   % real estate Commercial owner occupied real          814,259          802,125          796,139          784,152          787,623        3.4   % estate Commercial and         301,845          294,580          291,308          279,763          245,285        23.1  % industrial Other income           140,024          136,957          131,776          133,713          131,832        6.2   % producing property Consumer non real      116,312          104,239          93,997           86,934           86,729         34.1  % estate Other                 43,900         32,133         26,393         33,163         26,840        63.6  % Total non-acquired    2,741,242      2,665,595      2,604,298      2,571,003      2,517,352     8.9   % loans Total loans (net of unearned          $ 5,754,345     $ 3,587,435     $ 3,599,553     $ 3,645,745     $ 3,038,343     89.4  % income) (1)                                                                                                                                  Loans held for       $ 52,467        $ 47,980        $ 50,449        $ 65,279        $ 71,585        -26.7 % sale                                                                                                                                                                                                                                                                                        Quarter Ended                                                                                  Nine Months Ended                      September 30,    June 30,         March 31,        December 31,     September 30,              September   September                                                                                                                     30,         30, SELECTED RATIOS      2013             2013             2013             2012             2012                       2013        2012                                                                                                                                  Return on average assets                0.66       %    0.99       %    0.84       %    0.52       %    0.83       %             0.81   %    0.77   % (annualized)                                                                                                                                  Operating return on average assets     1.07       %    1.04       %    0.95       %    0.98       %    0.87       %             1.02   %    0.82   % (annualized) (non-GAAP) (3)                                                                                                                                  Return on average common equity         5.78       %    9.72       %    8.45       %    5.22       %    8.40       %             7.64   %    7.87   % (annualized)                                                                                                                                  Return on average equity                5.71       %    9.72       %    8.45       %    5.22       %    8.40       %             7.56   %    7.87   % (annualized)                                                                                                                                  Operating return on average common equity                9.45       %    10.17      %    9.49       %    9.80       %    8.73       %             9.67   %    8.44   % (annualized) (non-GAAP) (3)                                                                                                                                  Operating return on average equity     9.18       %    10.17      %    9.49       %    9.80       %    8.73       %             9.54   %    8.44   % (annualized) (non-GAAP) (3)                                                                                                                                  Return on average common tangible equity                10.39      %    13.48      %    11.92      %    6.91       %    10.74      %             11.82  %    10.13  % (annualized) (non-GAAP) (10)                                                                                                                                  Operating return on average tangible common       16.43      %    14.07      %    13.30      %    12.59      %    11.26      %             14.75  %    10.83  % equity (annualized) (non-GAAP) (10)                                                                                                                                  Return on average tangible equity       9.88       %    13.48      %    11.92      %    6.91       %    10.74      %             11.56  %    10.13  % (annualized) (non-GAAP) (10)                                                                                                                                  Net interest margin (tax           5.11       %    5.01       %    4.94       %    4.88       %    5.03       %             5.03   %    4.79   % equivalent)                                                                                                                                  Efficiency ratio      78.74      %    69.49      %    72.37      %    80.95      %    66.91      %             74.26  %    68.95  % (tax equivalent)                                                                                                                                  Operating efficiency ratio      64.27      %    63.79      %    64.47      %    62.84      %    58.96      %             64.19  %    61.83  % excluding OREO expense                                                                                                                                  Book value per       $ 40.31         $ 30.33         $ 30.22         $ 29.97         $ 28.71       common share                                                                                                                                  Tangible common equity per common    $ 21.76         $ 23.09         $ 22.89         $ 22.54         $ 23.46       share (non-GAAP) (10)                                                                                                                                  Common shares issued and            24,066,545     17,032,061     17,017,904     16,937,464     15,114,185  outstanding                                                                                                                                  Common                11.27      %    10.24      %    10.00      %    9.88       %    10.03      % equity-to-assets                                                                                                                                  Equity-to-assets      12.08      %    10.24      %    10.00      %    9.88       %    10.03      %                                                                                                                                  Tangible common equity-to-tangible    6.85       %    7.99       %    7.76       %    7.62       %    8.35       % assets (non-GAAP) (10)                                                                                                                                  Tangible equity-to-tangible    7.70       %    7.99       %    7.76       %    7.62       %    8.35       % assets (non-GAAP) (10)                                                                                                                                  Tier 1 leverage       10.0       %    9.2        %    8.8        %    9.8        %    9.3        % (9)        SCBT Financial Corporation (Unaudited) (Dollars in thousands, except per share data)                                                                                                                                       Quarter Ended                                                              Nine Months Ended                      September    June 30,     March 31,    December     September              September    September                      30,                                    31,          30,                    30,          30, RECONCILIATION OF    2013         2013         2013         2012         2012                   2013         2012 NON-GAAP TO GAAP                                                                                                                            Pre-tax, Pre-provision Operating Earnings (6) Net income (GAAP)    $ 12,054     $ 12,532     $ 10,649     $ 5,910      $ 9,063      33.0  %   $ 35,235     $ 24,121     46.1  % Provision for loan     659          179          1,060        2,211        4,044      -83.7 %     1,898        11,408     -83.4 % losses (1) Provision for         6,804      6,173      5,174      2,552      4,938     37.8  %    18,151    12,576    44.3  % income taxes Pre-tax, pre-provision          19,517       18,884       16,883       10,673       18,045     8.2   %     55,284       48,105     14.9  % income Securities gains       --           --           --           (128   )     --                     --           (61    ) Merger and conversion related    10,397     860        1,963      7,552      568                  13,220     2,662   expense Pre-tax, pre-provision        $ 29,914    $ 19,744    $ 18,846    $ 18,097    $ 18,613    60.7  %   $ 68,504    $ 50,706    35.1  % operating earnings (non-GAAP)                                                                                                                            Operating Return of Average Assets (3) Operating return on average assets      1.07   %     1.04   %     0.95   %     0.98   %     0.87   %               1.02   %     0.82   % (non-GAAP) Effect to adjust for securities         0.00   %     0.00   %     0.00   %     0.01   %     0.00   %               0.00   %     0.00   % gains (losses) Effect to adjust for merger and        -0.41  %    -0.05  %    -0.11  %    -0.47  %    -0.04  %              -0.21  %    -0.05  % conversion related expenses Return on average     0.66   %    0.99   %    0.84   %    0.52   %    0.83   %              0.81   %    0.77   % assets (GAAP)                                                                                                                            Operating Return of Average Common Equity (3) Operating return on average equity      9.45   %     10.17  %     9.49   %     9.80   %     8.73   %               9.67   %     8.44   % (non-GAAP) Effect to adjust for securities         0.00   %     0.00   %     0.00   %     0.08   %     0.00   %               0.00   %     0.00   % gains (losses) Effect to adjust for merger and        -3.67  %    -0.45  %    -1.04  %    -4.66  %    -0.33  %              -2.03  %    -0.57  % conversion related expenses Return on average common equity         5.78   %    9.72   %    8.45   %    5.22   %    8.40   %              7.64   %    7.87   % (GAAP)                                                                                                                            Operating Return of Average Equity (3) Operating return on average equity      9.18   %     10.17  %     9.49   %     9.80   %     8.73   %               9.54   %     8.44   % (non-GAAP) Effect to adjust for securities         0.00   %     0.00   %     0.00   %     0.08   %     0.00   %               0.00   %     0.00   % gains (losses) Effect to adjust for merger and        -3.47  %    -0.45  %    -1.04  %    -4.66  %    -0.33  %              -1.98  %    -0.57  % conversion related expenses Return on average     5.71   %    9.72   %    8.45   %    5.22   %    8.40   %              7.56   %    7.87   % equity (GAAP)                                                                                                                            Return on Average Common Tangible Equity Return on average common tangible        10.39  %     13.48  %     11.92  %     6.91   %     10.74  %               11.82  %     10.13  % equity (non-GAAP) Effect to adjust for tangible          -4.61  %    -3.76  %    -3.47  %    -1.69  %    -2.34  %              -4.18  %    -2.26  % assets Return on average common equity         5.78   %    9.72   %    8.45   %    5.22   %    8.40   %              7.64   %    7.87   % (GAAP)                                                                                                                            Operating Return on Average Common Tangible Equity Operating return on average common      16.43  %     14.07  %     13.30  %     12.59  %     11.26  %               14.75  %     10.83  % tangible equity (non-GAAP) Effect to adjust for securities         0.00   %     0.00   %     0.00   %     0.08   %     0.00   %               0.00   %     0.00   % gains (losses) Effect to adjust for merger and         -3.68  %     -0.45  %     -1.05  %     -4.66  %     -0.33  %               -2.03  %     -0.57  % conversion related expenses Effect to adjust for tangible          -6.97  %    -3.90  %    -3.80  %    -2.79  %    -2.53  %              -5.08  %    -2.39  % assets Return on average common equity         5.78   %    9.72   %    8.45   %    5.22   %    8.40   %              7.64   %    7.87   % (GAAP)                                                                                                                            Return on Average Tangible Equity (10) Return on average tangible equity        9.88   %     13.48  %     11.92  %     6.91   %     10.74  %               11.56  %     10.13  % (non-GAAP) Effect to adjust for intangible        -4.17  %    -3.76  %    -3.47  %    -1.69  %    -2.34  %              -4.00  %    -2.26  % assets Return on average     5.71   %    9.72   %    8.45   %    5.22   %    8.40   %              7.56   %    7.87   % equity (GAAP)                                                                                                                            Operating efficiency ratio excluding OREO expense Operating efficiency ratio       64.27  %     63.79  %     64.47  %     62.84  %     58.96  %               64.19  %     61.83  % excluding OREO expense Effect to adjust for OREO and loan      3.68   %     4.37   %     4.84   %     5.41   %     6.95   %               4.21   %     5.47   % related expense Effect to adjust for merger and        11.05  %    1.33   %    3.06   %    12.70  %    1.00   %              5.93   %    1.65   % conversion expenses Efficiency ratio      78.74  %    69.49  %    72.37  %    80.95  %    66.91  %              74.26  %    68.95  % (Tax Equivalent)                                                                                                                            Tangible Book Value Per Common Share (10) Tangible book value per common     $ 21.76      $ 23.09      $ 22.89      $ 22.54      $ 23.46 share (non-GAAP) Effect to adjust for intangible        18.55      7.24       7.33       7.43       5.25    assets Book value per common share         $ 40.31     $ 30.33     $ 30.22     $ 29.97     $ 28.71   (GAAP)                                                                                                                            Tangible Common Equity-to-Tangible Assets Tangible common equity-to-tangible     6.85   %     7.99   %     7.76   %     7.62   %     8.35   % assets (non-GAAP) Effect to adjust for tangible          4.42   %    2.25   %    2.24   %    2.26   %    1.68   % assets Common equity-to-assets      11.27  %    10.24  %    10.00  %    9.88   %    10.03  % (GAAP)                                                                                                                            Tangible Equity-to-Tangible Assets (10) Tangible equity-to-tangible     7.70   %     7.99   %     7.76   %     7.62   %     8.35   % assets (non-GAAP) Effect to adjust for intangible        4.38   %    2.25   %    2.24   %    2.26   %    1.68   % assets Equity-to-assets      12.08  %    10.24  %    10.00  %    9.88   %    10.03  % (GAAP)        SCBT Financial Corporation (Unaudited) (Dollars in thousands)                                                                                                                Three Months Ended                       September 30, 2013                         September 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     $ 418,104       $   505       0.48    %      210,080       $   282       0.53    % time deposits Investment securities              507,575           3,315     2.59    %      345,693           1,902     2.19    % (taxable) Investment securities              149,083           1,202     3.20    %      156,124           1,172     2.99    % (tax-exempt) Loans held for sale     53,204            543       4.05    %      56,300            492       3.48    % Acquired loans, net of allowance for        2,427,583         48,462    7.92    %      501,214           16,004    12.70   % acquired loan losses Non-acquired loans     2,698,580       29,673    4.36    %     2,497,478       29,683    4.73    % (1) Total interest-earning        6,254,129         83,700    5.31    %      3,766,889         49,535    5.23    % assets                                                                                                 Noninterest-Earning Assets: Cash and due from       125,038                                    80,332 banks Other assets            873,835                                    531,469 Allowance for non-acquired loan      (38,584   )                               (47,254   ) losses Total noninterest-earning    960,289                                  564,547    assets Total Assets          $ 7,214,418                               $ 4,331,436                                                                                                  Interest-Bearing Liabilities: Transaction and money market          $ 2,560,685     $   832       0.13    %    $ 1,548,673     $   712       0.18    % accounts Savings deposits        561,773           115       0.08    %      307,087           115       0.15    % Certificates and        1,503,519         1,752     0.46    %      944,709           1,143     0.48    % other time deposits Federal funds purchased and           251,551           92        0.15    %      223,844           105       0.19    % repurchase agreements Other borrowings       93,849          1,239     5.24    %     45,908          551       4.77    % Total interest-bearing        4,971,377         4,030     0.32    %      3,070,221         2,626     0.34    % liabilities                                                                                                 Noninterest-Bearing Liabilities: Demand deposits         1,359,137                                  813,372 Other liabilities      46,719                                   18,660     Total noninterest-bearing     1,405,856                                  832,032 liabilities ("Non-IBL") Shareholders'          837,185                                  429,183    equity Total Non-IBL and shareholders'          2,243,041                                1,261,215  equity Total liabilities and shareholders'     $ 7,214,418                               $ 4,331,436  equity                                                                                  Net interest income and margin (NON-TAX                   $   79,670    5.05    %                    $   46,909    4.95    % EQUIV.) Net interest margin                                 5.11    %                                  5.02    % (TAX EQUIVALENT)  <td col*Story too large*       SCBT Financial Corporation (Unaudited) (Dollars in thousands)      [TRUNCATED]  
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