HIGHLIGHTS:
--Earnings & Net Income
-- Net income of $2.2 million; up from $124,000 in 3Q 2008
-- Diluted earnings per share of $0.17 for the quarter
-- Net interest margin --- 4.04%; up from 3.86% in 3Q 2008
-- Mortgage banking income --- up $944,000 over 3Q 2008
--Balance Sheet
-- Core deposit growth --- excluding all CDs --- up $52.2 million; 18.1%
annualized increase
-- Continued strong liquidity position --- $175.4 million in cash and cash
equivalents
-- Strong tangible common equity to tangible assets ratio --- 7.97%; up
from 7.80% at 2Q 2009
--Asset quality
-- Allowance for loan losses: 1.55% of period end loans; up from 1.45% at
2Q 2009;
-- NPAs: 1.56% of total assets and 1.96% of loans and repossessed assets;
-- Net charge-offs --- increased to 0.92% annualized from 0.74% for 2Q 2009
COLUMBIA, S.C.--(BUSINESS WIRE)--
SCBT Financial Corporation (NASDAQ: SCBT), the holding company for SCBT,
National Association, today released its unaudited results of operations
and other financial information for the three-month period ended
September 30, 2009. The Company produced solid results due primarily to
its net interest margin, noninterest income in mortgage banking and
continued good expense control.
Quarterly Cash Dividend
The Board of Directors of SCBT has declared a quarterly cash dividend of
$0.17 per share payable on its common stock. This per share amount is
equal to the dividend paid in the immediately preceding quarter and will
be payable on November 13, 2009 to shareholders of record as of November
6, 2009.
Third Quarter 2009 Results of Operations
Please refer to the accompanying tables for detailed comparative data
on results of operations and financial results.
The Company reported consolidated net income of $2.2 million, or $0.17
per diluted share for the three months ended September 30, 2009 compared
to consolidated net income of $124,000, or $0.01 per diluted share for
the third quarter of 2008, a $2.1 million increase. This increase was
primarily the result of the following items:
-- Net interest income increased by $1.7 million or 7.0%;
-- Increase in the provision for loan losses of $4.2 million or 151.0%;
-- Decrease in the amount of Other Than Temporary Impairment ("OTTI") of
$7.6 million;
-- $499,000 increase for the FDIC assessments; and
-- $2.1 million increase in OREO expenses and loan-related costs.
"I continue to be pleased with our overall performance," said Robert R.
Hill, Jr., President and CEO. "We are successfully navigating through
this environment with a good net interest margin, good expense control,
and strong core deposit growth. We are fortunate to attract very
talented bankers to our team and many new customer relationships.
However, we still have a lot of work to do with higher credit costs and
problem loans. The continued high level of credit costs and the OTTI
charge had a negative impact on our overall earnings."
During the third quarter of 2009, the Company's average total assets
increased by $39.1 million, a 1.4% increase over the third quarter of
2008. The growth in average total assets was supported by growth in
average total deposits of $78.3 million, an increase of 3.8% from the
third quarter of 2008. Average earning assets for the quarter increased
by $54.5 million, or 2.1%, compared to the third quarter of 2008.
The Company's annualized return on average assets (ROAA) for the third
quarter increased to 0.31% compared to 0.02% for the third quarter of
2008, but decreased from 0.77% for the second quarter of 2009. Total
average shareholders' equity at September 30, 2009 was $283.0 million,
an increase of $43.2 million, or 18.0% from December 31, 2008. This
increase was due to the issuance of 64,779 shares of Fixed Rate
Cumulative Preferred Stock, Series T, to the U.S. Treasury ("UST") in
January 2009 and the issuance of 1.356 million shares of common stock in
May 2009 which raised $29.2 million in new capital. Also, during the
second quarter of 2009, the Company redeemed the preferred stock for
$64.779 million and repurchased the common stock warrant from the UST
for $1.4 million. Annualized return on average equity (ROAE) for the
quarter was 3.04%, up from 0.22% for the third quarter of 2008.
Annualized return on average tangible equity (ROATE) for the third
quarter increased to 4.13% from 0.69% for the comparable period in the
prior year, but decreased from 9.43% in the second quarter of 2009.
Asset Quality
Annualized net charge-offs increased to 0.92% from 0.74% experienced in
the second quarter of 2009, and increased from 0.41% experienced in the
third quarter of 2008. During the third quarter, non-performing assets
(NPAs) as a percentage of loans and repossessed assets increased to
1.96% compared to 1.83% in the second quarter of 2009 and 0.66% one year
ago. NPAs to total assets at September 30, 2009 were 1.56% compared to
1.46% at the end of the second quarter of 2009 and 0.54% one year ago.
The increase in NPAs continues to reflect the pressure within the real
estate markets throughout our operating area and within the economy as a
whole. During the third quarter, the Company's other real estate owned
("OREO") decreased by $5.0 million from the prior quarter end, but
increased by $1.7 million from September 30, 2008. Nonaccrual loans
(including accruing loans past due 90 days or more) increased $7.3
million from the second quarter of 2009, and by $24.8 million from the
third quarter in 2008.
At September 30, 2009, nonperforming loans totaled $37.2 million,
representing 1.68% of period-end loans. OREO at the end of the third
quarter was $4.2 million, down from $6.1 million at December 31, 2008
and up from $2.5 million at the end of the third quarter of 2008. The
allowance for loan losses at September 30, 2009 was $34.3 million and
represented 1.55% of total period-end loans. The current allowance for
loan losses provides 0.92 times coverage of period-end nonperforming
loans, down from 1.08 times in the second quarter of 2009 and 2.36 times
at September 30, 2008. In the third quarter, net charge-offs were $5.1
million, or an annualized 0.92% of average loans compared to $4.2
million, or 0.74% the previous quarter and $2.3 million, or 0.41% one
year ago. The provision for loan losses was $7.0 million for the third
quarter of 2009 compared to $2.8 million for the comparable quarter one
year ago, and $4.5 million in the second quarter of 2009.
The Company's recorded balance of the four assets related to Silverton
was approximately $1.04 million at September 30, 2009. The FDIC was
named receiver of Silverton Bank on May 1, 2009. During the third
quarter, the Company charged-off two loan participations, (related to
Silverton Bank) which were acquired in purchase business combinations in
2007, totaling approximately $1.8 million. These assets have now been
valued at approximately twenty cents on the dollar. In addition, two
other loan participations have been moved to OREO. One loan was moved to
OREO at the end of the first quarter of 2009, and the other loan was
moved at the end of the second quarter of 2009. During the third
quarter, the Company wrote down the value of these properties by an
additional $810,000. Increased activity by the FDIC to dispose of these
assets and a known bid, along with the reduced prospect of collection
drove the additional charge-offs and write downs recorded by the Company
on these loans and OREO assets.
Loans and Deposits
The Company decreased total loans 3.1% since the third quarter of 2008,
driven by reductions in construction and land development loans of $73.7
million, commercial and industrial loans of $33.8 million, consumer non
real estate loans of $28.6 million and other loans of $24.8 million.
Offsetting the loan reductions has been loan growth in home equity loans
of $32.7 million, commercial owner occupied loans of $53.9 million and
other income producing property of $9.5 million. Total loans outstanding
were $2.2 billion at September 30, 2009 compared to $2.3 billion at
September 30, 2008. The balance of mortgage loans held for sale
increased $4.3 million from December 31, 2008 to $20.1 million at
September 30, 2009. During the first half of 2009, mortgage loans held
for sale increased sharply, as consumers took advantage of low interest
rates and refinanced their home mortgages. The balance of mortgage loans
held for sale at June 30, 2009 was $53.9 million. Since June 30, 2009,
we have seen a return to a more normal pipeline of refinancing activity,
and therefore a lower balance at September 30, 2009.
Total deposits decreased compared to the third quarter of 2008 by $11.6
million, or 0.54%. Certificates of deposit ("CDs") less than $100,000
and CDs more than $100,000 decreased by $196.1 million, which was mostly
offset by the other deposit categories. Given the decline in CD
balances, total deposits decreased by $53.2 million, or 9.8% annualized,
from the end of the second quarter of 2009. All categories of deposits
increased during the quarter except for CDs and NOW accounts as compared
to the previous quarter. The Company initiated a deposit campaign in
2009 to increase its core deposit base (excluding all CDs). The largest
growth on a year-to-date basis has occurred in money market accounts
with a $110.6 million increase, or 53.0% annualized; savings accounts
have grown $20.1 million, or 18.9% annualized; NOW accounts have grown
by $21.0 million, or 9.4% annualized; and demand deposits have grown by
$31.9 million, or 14.0% annualized. The Company continues to reduce
rates paid on CDs in order to manage its net interest margin within
favorable levels. The Company decreased brokered deposits since the end
of 2008 and held none of these at September 30, 2009, reflecting a
$110.0 million decrease. With the continued decline in loans outstanding
and the capital raised in May of 2009, the Company continued to maintain
a very strong capital and liquidity position at the end of the quarter.
In addition, over the last five months, the Company has increased its
correspondent relationships with a select group of smaller financial
institutions and thereby has increased significantly the liquidity and
funding sources for the Company. Funds for these correspondents, along
with the slow down in net loan growth, has increased the liquidity
position of the Company by more than $117 million at September 30, 2009
from the end of 2008.
Net Interest Income and Margin
Non-taxable equivalent net interest income (before provision for loan
losses) was $26.4 million for the third quarter of 2009, up 7.0% from
$24.7 million in the comparable period last year. Tax-equivalent net
interest margin increased 18 basis points from the third quarter of 2008
to 4.04%. Compared to the second quarter of 2009, tax-equivalent net
interest margin decreased 3 basis points. This decrease was the result
of earning approximately 25 basis points on excess Federal Reserve
Balances with an average balance of $104.0 million during the quarter.
Excluding both the average balances and the rate earned (25 basis
points) on these assets, the net interest margin would have been
approximately 4.19% for the quarter. With interest rates continuing at
low levels, the expectation of increased premium costs from the FDIC,
and ongoing slow loan demand, the Company has continued to aggressively
manage deposit pricing and funding sources during the third quarter of
2009. The Company continued to focus on increasing core deposits with
$52.2 million increase or 18.1%, on a link quarter basis, and has
allowed $106.0 million in certificates of deposit to run off during the
quarter. The increase in non-performing assets has partially offset the
positive impact of lower deposit costs.
The Company's average yield on interest-earning assets decreased 74
basis points while the average rate on interest-bearing liabilities
decreased 102 basis points from the third quarter of 2008. During the
third quarter of 2009, the Company's average total assets increased to
$2.8 billion, a 1.4% increase over the third quarter of 2008. The
increase was the result of the increase in average short-term
investments to $172.9 million, a $136.5 million increase from the third
quarter of 2008. All other average earning asset categories decreased
from the results of the third quarter of 2008. The decline in loan
volume and lower current market rates in combination with variable rate
loan resets resulted in the average yield on loans falling by 46 basis
points compared to the third quarter of 2008. Average investment
securities were $202.7 million at September 30, 2009, or 19.1% lower
than the balance in 2008. The growth in average total assets was
supported by growth in average total deposits of $78.3 million, an
increase of 3.8% from the third quarter of 2008.
Noninterest Income and Expense
Noninterest income was $5.6 million for the third quarter of 2009
compared to a $2.7 million loss for the third quarter of 2008, an
increase of $8.3 million. This increase reflects primarily an other than
temporary impairment ("OTTI") recorded during the third quarter of 2008
on Freddie Mac preferred securities of $9.8 million, compared to the
credit portion of an OTTI recorded on pooled trust preferred securities
of $2.2 million during the third quarter of 2009, and by a $944,000, or
186.2%, increase in mortgage banking income as the Company continued to
experience refinancing activity during the third quarter of 2009. Trust
and investment services income decreased $137,000, or 18.9%. Bankcard
services income remained flat compared to the same period one year ago,
and other income decreased by 28.8% due primarily to a reduction in
returns on bank owned life insurance.
Compared to the second quarter of 2009, noninterest income was down by
$2.2 million, primarily driven by the following decreases: (1) credit
portion of OTTI recorded on a pooled trust preferred securities of $2.2
million was $1.7 million more than the second quarter of 2009, and (2)
mortgage banking income was down by $683,000. These two decreases were
partially reduced by a $270,000 increase in service charges on deposit
accounts.
Noninterest expense was $21.8 million in the third quarter of 2009, a
14.1% increase or $2.7 million, compared to $19.1 million in the third
quarter of 2008. During the third quarter, the Company had increased
costs in three specific areas: (1) OREO expense and loan related costs
were higher by $2.1 million, (2) FDIC assessments were higher by
$499,000, and (3) salaries and employee benefits were higher by
$485,000. The Company managed the other expense categories to partially
offset these increases.
The Company's quarterly efficiency ratio increased to 63.5% compared to
60.9% in the second quarter of 2009, and 59.8% one year ago. For the
nine months ended September 30, 2009 and 2008, the efficiency ratio was
62.2% and 62.5%, respectively, reflecting a slight improvement.
"The Company's net interest margin remains strong as we continue to
manage through both the pressure on asset quality and the extremely low
interest rate environment. We continued to focus on the expense stream;
however, the costs related to loans, OREO and FDIC assessments continue
to out-pace the savings in all other expense categories," said John C.
Pollok, COO and CFO.
SCBT Financial Corporation, Columbia, South Carolina is a registered
bank holding company incorporated under the laws of South Carolina. The
Company consists of SCBT, N.A., the third largest bank headquartered in
South Carolina, and NCBT, a Division of SCBT, N.A. Providing financial
services for 75 years, SCBT Financial Corporation operates 49 financial
centers in 16 South Carolina counties and Mecklenburg County in North
Carolina. Named in Forbes as one of the 100 Most Trustworthy Companies
in America, SCBT Financial Corporation has assets of approximately $2.8
billion and its stock is traded under the symbol SCBT on the NASDAQ
Global Select Market. More information can be found at www.SCBTonline.com.
Cautionary Statement Regarding Forward Looking Statements
Statements included in this press release which are not historical in
nature are intended to be, and are hereby identified as, forward looking
statements for purposes of the safe harbor provided by Section 21E of
the Securities Exchange Act of 1934. SCBT Financial Corporation 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) credit risk associated with an
obligor's failure to meet the terms of any contract with the bank or
otherwise fail to perform as agreed; (2) interest risk involving the
effect of a change in interest rates on both the bank's earnings and the
market value of the portfolio equity; (3) liquidity risk affecting the
bank's ability to meet its obligations when they come due; (4) price
risk focusing on changes in market factors that may affect the value of
traded instruments in "mark-to-market" portfolios; (5) transaction risk
arising from problems with service or product delivery; (6) compliance
risk involving risk to earnings or capital resulting from violations of
or nonconformance with laws, rules, regulations, prescribed practices,
or ethical standards; (7) strategic risk resulting from adverse business
decisions or improper implementation of business decisions; (8)
reputation risk that adversely affects earnings or capital arising from
negative public opinion; (9) terrorist activities risk that results in
loss of consumer confidence and economic disruptions; (10) economic
downturn risk resulting in deterioration in the credit markets; (11)
greater than expected non-interest expenses; (12) excessive loan losses;
and (13) 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)
Three Months Ended
Third Nine Months Ended
September 30, YTD
Quarter
September 30, June 30, March 31, December 31, September 30, 2009 - 2008
EARNINGS SUMMARY 2009 2009 2009 - 2008 % Change
(non tax 2009 2008 2008 2009 2008
equivalent) % Change
Interest income $ 35,020 $ 35,857 $ 36,448 $ 38,094 $ 38,958 -10.1 % $ 107,325 $ 117,981 -9.0 %
Interest expense 8,639 9,838 11,450 13,450 14,301 -39.6 % 29,927 46,848 -36.1 %
Net interest income 26,381 26,019 24,998 24,644 24,657 7.0 % 77,398 71,133 8.8 %
Provision for loan 6,990 4,521 5,043 4,374 2,785 151.0 % 16,554 6,362 160.2 %
losses (1)
Noninterest income 5,591 7,761 7,131 6,110 (2,693 ) -307.6 % 20,483 12,939 58.3 %
Noninterest expense 21,797 21,038 20,187 20,876 19,096 14.1 % 63,022 58,920 7.0 %
Income before
provision for 3,185 8,221 6,899 5,504 83 3737.3 % 18,305 18,790 -2.6 %
income taxes
Provision for 1,014 2,836 2,379 1,955 (41 ) -2573.2 % 6,229 6,554 -5.0 %
income taxes
Net income 2,171 5,385 4,520 3,549 124 1650.8 % 12,076 12,236 -1.3 %
Preferred stock -- 450 665 -- -- 1,115 --
dividends
Accretion on
preferred stock -- 3,410 149 -- -- 3,559 --
discount
Net income
available to common $ 2,171 $ 1,525 $ 3,706 $ 3,549 $ 124 1650.8 % $ 7,402 $ 12,236 -39.5 %
shareholders
Basic
weighted-average 12,546,654 11,826,972 11,179,869 10,846,219 10,121,168 24.0 % 11,873,728 10,110,583 17.4 %
common shares
Diluted
weighted-average 12,604,762 11,870,522 11,226,078 10,949,411 10,273,752 22.7 % 11,921,652 10,251,853 16.3 %
common shares
Earnings per common $ 0.17 $ 0.13 $ 0.33 $ 0.33 $ 0.01 1600.0 % $ 0.62 $ 1.21 -48.8 %
share - Basic
Earnings per common 0.17 0.13 0.33 0.32 0.01 1600.0 % 0.62 1.19 -47.9 %
share - Diluted
Cash dividends
declared per common $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17 0.0 % $ 0.51 $ 0.51 0.0 %
share
Dividend payout 141.59 % 52.02 % 54.24 % 1550.42 % 28.22 % 401.7 % 68.48 % 30.14 % 127.2 %
ratio
AVERAGE for Quarter Ended Quarter AVERAGE for Nine Months
YTD
September 30, March 31, December 31, September 30, 2009 - 2September September 30, 2009 -
BALANCE SHEET June 30, 2009 30, 2008 %
HIGHLIGHTS 2009 2009 2008 2008 % Change 2008 Change
2009
Loans held for sale $ 20,763 $ 48,132 $ 36,484 $ 10,684 $ 10,543 96.9 % $ 35,069 $ 19,149 83.1 %
Total loans (1) 2,221,078 2,268,292 2,307,322 2,304,911 2,265,606 -2.0 % 2,265,248 2,192,088 3.3 %
Total investment 202,692 199,293 213,849 232,446 250,395 -19.1 % 205,238 252,149 -18.6 %
securities
Intangible assets 65,871 66,002 66,134 66,268 66,413 -0.8 % 66,002 65,911 0.1 %
Earning assets 2,617,386 2,587,286 2,643,376 2,560,387 2,562,877 2.1 % 2,622,402 2,511,369 4.4 %
Total assets 2,806,974 2,812,215 2,868,847 2,768,864 2,767,853 1.4 % 2,835,753 2,711,547 4.6 %
Noninterest-bearing 334,165 321,038 316,978 315,841 326,298 2.4 % 324,123 314,940 2.9 %
deposits
Interest-bearing 1,820,139 1,826,704 1,866,454 1,825,501 1,749,742 4.0 % 1,837,596 1,699,040 8.2 %
deposits
Total deposits 2,154,304 2,147,742 2,183,432 2,141,342 2,076,040 3.8 % 2,161,719 2,013,980 7.3 %
Federal funds
purchased and 229,806 197,636 203,391 190,409 295,137 -22.1 % 210,374 298,251 -29.5 %
repurchase
agreements
Other borrowings 144,180 149,570 164,546 183,159 160,789 -10.3 % 152,691 163,772 -6.8 %
Shareholders'
common equity 282,953 265,793 249,429 239,769 221,995 27.5 % 266,181 220,688 20.6 %
(excludes preferred
stock)
Shareholders' 282,953 298,849 300,497 239,769 221,995 27.5 % 294,035 220,688 33.2 %
equity
ENDING Balance
Quarter
BALANCE SHEET September 30, June 30, March 31, December 31, September 30, 2009 - 2008
HIGHLIGHTS 2009 2009
2009 2008 2008 % Change
Loans held for sale $ 20,077 $ 53,853 $ 43,603 $ 15,742 $ 11,419 75.8%
Total loans (1) 2,209,403 2,236,162 2,292,654 2,316,076 2,279,726 -3.1%
Total investment 212,228 191,415 204,032 222,227 238,961 -11.2%
securities
Intangible assets 65,827 65,959 66,090 66,221 66,363 -0.8%
Allowance for loan (34,297 ) (32,431 ) (32,094 ) (31,525 ) (29,199 ) 17.5%
losses (1)
Premises and 72,523 73,404 73,606 66,392 64,056 13.2%
equipment
Total assets 2,776,684 2,807,309 2,839,584 2,766,710 2,766,745 0.4%
Noninterest-bearing 335,565 322,270 315,727 303,689 313,700 7.0%
deposits
Interest-bearing 1,791,554 1,858,096 1,836,141 1,849,585 1,825,027 -1.8%
deposits
Total deposits 2,127,119 2,180,366 2,151,868 2,153,274 2,138,727 -0.5%
Federal funds
purchased and 211,606 187,677 205,985 172,393 224,328 -5.7%
repurchase
agreements
Other borrowings 144,048 144,430 152,799 177,477 172,738 -16.6%
Total liabilities 2,494,901 2,527,557 2,528,404 2,521,782 2,547,158 -2.1%
Shareholders'
common equity 281,783 279,752 249,811 244,928 219,587 28.3%
(excludes preferred
stock)
Shareholders' 281,783 279,752 311,180 244,928 219,587 28.3%
equity
Common shares
issued and 12,712,476 12,696,849 11,319,644 11,250,603 10,225,776 24.3%
outstanding
NONPERFORMING September 30, June 30, March 31, December 31, September 30, Quarter
ASSETS (ENDING 2009 - 2008
balance) 2009 2009 2009 2008 2008 % Change
Nonaccrual loans $ 36,605 $ 29,379 $ 20,730 $ 14,624 $ 11,564 216.5%
Other real estate 4,189 9,165 9,563 6,126 2,508 67.0%
owned ("OREO")
Accruing loans past 585 559 614 293 796 -26.5%
due 90 days or more
Other nonperforming 13 -- 40 84 172 -92.4%
assets
Restructured loans 1,974 1,951 -- -- --
Total nonperforming $ 43,366 $ 41,054 $ 30,947 $ 21,127 $ 15,040 188.3%
assets
Total nonperforming
assets as a
percentage of total 1.96 % 1.83 % 1.34 % 0.91 % 0.66 %
loans and
repossessed assets
(1)(2)
Total nonperforming
assets as a 1.56 % 1.46 % 1.09 % 0.76 % 0.54 %
percentage of total
assets
NPLs as a
percentage of 1.68 % 1.34 % 0.93 % 0.64 % 0.54 %
period end loans
Quarter Ended Nine Months Ended
Quarter YTD
2009 -
September 30, December 31, September 30, 2009 - 2September September 30, 2008
ALLOWANCE FOR LOAN June 30, March 31, 30,
LOSSES (1) 2009 2009 2009 2008 2008 % Change 2008 %
2009 Change
Balance at $ 32,431 $ 32,094 $ 31,525 $ 29,199 $ 28,760 12.8 % $ 31,525 $ 26,570 18.6 %
beginning of period
Loans charged off (5,103 ) (4,295 ) (4,779 ) (1,980 ) (2,356 ) 116.6 % (14,176 ) (3,741 ) 278.9 %
Overdrafts charged (271 ) (230 ) (214 ) (299 ) (234 ) 15.9 % (715 ) (733 ) -2.5 %
off
Loan recoveries 195 262 390 121 182 7.1 % 847 471 79.8 %
Overdraft 55 79 129 110 62 -11.3 % 262 270 -3.0 %
recoveries
Net charge-offs (5,124 ) (4,184 ) (4,474 ) (2,048 ) (2,346 ) 118.4 % (13,782 ) (3,733 ) 269.2 %
Provision for loan 6,990 4,521 5,043 4,374 2,785 151.0 % 16,554 6,362 160.2 %
losses
Balance at end of $ 34,297 $ 32,431 $ 32,094 $ 31,525 $ 29,199 17.5 % $ 34,297 $ 29,199 17.5 %
period
Allowance for loan
losses as a 1.55 % 1.45 % 1.40 % 1.36 % 1.28 % 1.55 % 1.28 %
percentage of total
loans (1)
Allowance for loan
losses as a 92.22 % 108.33 % 150.37 % 211.34 % 236.23 % 92.22 % 236.23 %
percentage of
nonperforming loans
Net charge-offs as
a percentage of 0.92 % 0.74 % 0.79 % 0.35 % 0.41 % 0.81 % 0.23 %
average loans
(annualized) (1)
Provision for loan
losses as a
percentage of 1.25 % 0.80 % 0.89 % 0.75 % 0.49 % 0.98 % 0.39 %
average total loans
(annualized) (1)
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
LOAN PORTFOLIO September 30, December 31, September 30,
(ENDING balance) % of Total 20% of Total % of Total
(1) 2009 20
Commercial real
estate:
Construction and $ 484,540 22.0 % $ 535,638 23.1 % $ 558,261 24.4 %
land development
Commercial 311,903 14.1 % 330,792 14.3 % 313,637 13.8 %
non-owner occupied
Total commercial 796,443 36.1 % 866,430 37.4 % 871,898 38.2 %
real estate
Consumer real
estate:
Consumer owner 284,941 12.9 % 293,521 12.7 % 288,808 12.7 %
occupied
Home equity loans 244,855 11.1 % 222,025 9.6 % 212,131 9.3 %
Total consumer 529,796 24.0 % 515,546 22.3 % 500,939 22.0 %
real estate
Total real estate 1,326,239 60.0 % 1,381,976 59.7 % 1,372,837 60.2 %
Commercial owner 461,199 20.9 % 423,345 18.3 % 407,296 17.9 %
occupied
Commercial and 197,544 8.9 % 251,929 10.9 % 231,300 10.1 %
industrial
Other income 139,617 6.3 % 141,516 6.1 % 130,096 5.7 %
producing property
Consumer non real 73,800 3.3 % 95,098 4.1 % 102,415 4.5 %
estate
Other 11,004 0.5 % 22,212 1.0 % 35,782 1.6 %
Total loans (net
of unearned $ 2,209,403 100.0 % $ 2,316,076 100.0 % $ 2,279,726 100.0 %
income) (1)
Loans held for $ 20,077 $ 15,742 $ 11,419
sale
Quarter Ended Nine Months Ended
September September
SELECTED RATIOS September 30, June 30, March 31, December 31, September 30, 30, 30,
2009 2009 2009 2008 2008
2009 2008
Return on average
assets 0.31 % 0.77 % 0.64 % 0.51 % 0.02 % 0.57 % 0.60 %
(annualized)
Return on average
common equity 3.04 % 2.30 % 6.03 % 5.89 % 0.22 % 3.72 % 7.41 %
(annualized)
Return on average
common tangible 4.13 % 3.24 % 8.49 % 8.46 % 0.69 % 5.12 % 10.93 %
equity
(annualized)
Return on average
equity 3.04 % 7.23 % 6.10 % 5.89 % 0.22 % 5.49 % 7.41 %
(annualized)
Return on average
tangible equity 4.13 % 9.43 % 8.05 % 8.46 % 0.69 % 7.23 % 10.93 %
(annualized)
Net interest
margin (tax 4.04 % 4.07 % 3.87 % 3.86 % 3.86 % 3.98 % 3.82 %
equivalent)
Efficiency ratio 63.47 % 60.88 % 62.41 % 65.05 % 59.82 % 62.24 % 62.54 %
(tax equivalent)
Book value per $ 22.17 $ 22.03 $ 22.07 $ 21.77 $ 21.47
common share
Tangible book
value per common $ 16.99 $ 16.84 $ 16.23 $ 15.88 $ 14.98
share
Common shares
issued and 12,712,476 12,696,849 11,319,644 11,250,603 10,225,776
outstanding
Common 10.15 % 9.97 % 8.80 % 8.85 % 7.94 %
equity-to-assets
Tangible common
equity-to-tangible 7.97 % 7.80 % 6.62 % 6.62 % 5.67 %
assets
Equity-to-assets 10.15 % 9.97 % 10.96 % 8.85 % 7.94 %
Tangible
equity-to-tangible 7.97 % 7.80 % 8.84 % 6.62 % 5.67 %
assets
Quarter Ended Nine Months Ended
RECONCILIATION OF September 30, June 30, March 31, December 31, September 30, September September
NON-GAAP TO GAAP 2009 2009 2009 2008 2008 30, 30,
2009 2008
Return on Average
Common Tangible
Equity
Return on average
common tangible 4.13 % 3.24 % 8.49 % 8.46 % 0.69 % 5.12 % 10.93 %
equity (non-GAAP)
Effect to adjust
for tangible -1.09 % -0.94 % -2.46 % -2.57 % -0.47 % -1.40 % -3.52 %
assets
Return on average
common equity 3.04 % 2.30 % 6.03 % 5.89 % 0.22 % 3.72 % 7.41 %
(GAAP)
Return on Average
Tangible Equity
Return on average
tangible equity 4.13 % 9.43 % 8.05 % 8.46 % 0.69 % 7.23 % 10.93 %
(non-GAAP)
Effect to adjust
for tangible -1.09 % -2.20 % -1.95 % -2.57 % -0.47 % -1.74 % -3.52 %
assets
Return on average 3.04 % 7.23 % 6.10 % 5.89 % 0.22 % 5.49 % 7.41 %
equity (GAAP)
Tangible Book
Value Per Common
Share
Tangible book
value per common $ 16.99 $ 16.84 $ 16.23 $ 15.88 $ 14.98
share (non-GAAP)
Effect to adjust
for tangible 5.18 5.19 5.84 5.89 6.49
assets
Book value per
common share $ 22.17 $ 22.03 $ 22.07 $ 21.77 $ 21.47
(GAAP)
Tangible Common
Equity-to-Tangible
Assets
Tangible common
equity-to-tangible 7.97 % 7.80 % 6.62 % 6.62 % 5.67 %
assets (non-GAAP)
Effect to adjust
for tangible 2.18 % 2.17 % 2.18 % 2.23 % 2.27 %
assets
Common
equity-to-assets 10.15 % 9.97 % 8.80 % 8.85 % 7.94 %
(GAAP)
Tangible
Equity-to-Tangible
Assets
Tangble
equity-to-tangible 7.97 % 7.80 % 8.84 % 6.62 % 5.67 %
assets (non-GAAP)
Effect to adjust
for tangible 2.18 % 2.17 % 2.12 % 2.23 % 2.27 %
assets
Equity-to-assets 10.15 % 9.97 % 10.96 % 8.85 % 7.94 %
(GAAP)
Note: The tangible measures above are non-GAAP measures and exclude the effect of period end or average balance of intangible
assets. The tangible return on equity measures also add back the after-tax amortization of intangibles to GAAP basis net income.
Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these
measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures
should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and
investors should consider the company's performance and financial condition as reported under GAAP and all other relevant
information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as
analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results
or financial condition as reported under GAAP. The sections titled "Reconciliation of Non-GAAP to GAAP" provide tables that
reconcile non-GAAP measures to GAAP.
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)
Three Months Ended
September 30, 2009 September 30, 2008
YIELD ANALYSIS Average Interest Average Average Interest Average
Balance Earned/Paid Yield/Rate Balance Earned/Paid Yield/Rate
Interest-Earning
Assets:
Federal funds sold,
reverse repo, and $ 172,853 $ 188 0.43 % 36,333 $ 180 1.97 %
time deposits
Investment
securities 174,562 1,991 4.53 % 211,553 2,760 5.19 %
(taxable)
Investment
securities 28,130 243 3.43 % 38,842 291 2.98 %
(tax-exempt)
Loans held for sale 20,763 196 3.75 % 10,543 137 5.17 %
Loans (1) 2,221,078 32,402 5.79 % 2,265,606 35,590 6.25 %
Total
interest-earning 2,617,386 35,020 5.31 % 2,562,877 38,958 6.05 %
assets
Noninterest-Earning
Assets:
Cash and due from 22,341 50,942
banks
Other assets 199,647 182,786
Allowance for loan (32,400 ) (28,752 )
losses
Total
noninterest-earning 189,588 204,976
assets
Total Assets $ 2,806,974 $ 2,767,853
Interest-Bearing
Liabilities:
Transaction and
money market $ 680,742 $ 1,084 0.63 % $ 558,556 $ 1,459 1.04 %
accounts
Savings deposits 157,278 185 0.47 % 151,623 432 1.13 %
Certificates and 982,119 5,801 2.34 % 1,039,563 9,340 3.57 %
other time deposits
Federal funds
purchased and 229,806 138 0.24 % 295,137 1,392 1.88 %
repurchase
agreements
Other borrowings 144,180 1,431 3.94 % 160,789 1,678 4.15 %
Total
interest-bearing 2,194,125 8,639 1.56 % 2,205,668 14,301 2.58 %
liabilities
Noninterest-Bearing
Liabilities:
Demand deposits 334,165 326,298
Other liabilities (4,269 ) 13,892
Total
noninterest-bearing 329,896 340,190
liabilities
("Non-IBL")
Shareholders' 282,953 221,995
equity
Total Non-IBL and
shareholders' 612,849 562,185
equity
Total liabilities
and shareholders' $ 2,806,974 $ 2,767,853
equity
Net interest income
and margin (NON-TAX $ 26,381 4.00 % $ 24,657 3.83 %
EQUIV.)
Net interest margin 4.04 % 3.86 %
(TAX EQUIVALENT)
Nine Months Ended
September 30, 2009 September 30, 2008
YIELD ANALYSIS Average Interest Average Average Interest Average
Balance Earned/Paid Yield/Rate Balance Earned/Paid Yield/Rate
Interest-Earning
Assets:
Federal funds sold,
reverse repo, and $ 116,847 $ 423 0.48 % $ 47,983 $ 885 2.46 %
time deposits
Investment
securities 176,232 6,505 4.94 % 213,632 8,356 5.22 %
(taxable)
Investment
securities 29,006 709 3.27 % 38,517 1,212 4.20 %
(tax-exempt)
Loans held for sale 35,069 1,256 4.79 % 19,149 816 5.69 %
Loans (1) 2,265,248 98,432 5.81 % 2,192,088 106,712 6.50 %
Total
interest-earning 2,622,402 107,325 5.47 % 2,511,369 117,981 6.28 %
assets
Noninterest-Earning
Assets:
Cash and due from 45,306 52,221
banks
Other assets 199,992 175,777
Allowance for loan (31,947 ) (27,820 )
losses
Total
noninterest-earning 213,351 200,178
assets
Total Assets $ 2,835,753 $ 2,711,547
Interest-Bearing
Liabilities:
Transaction and
money market $ 641,676 $ 2,957 0.62 % $ 568,158 $ 4,965 1.17 %
accounts
Savings deposits 153,540 555 0.48 % 145,129 1,396 1.28 %
Certificates and 1,042,380 21,487 2.76 % 985,753 30,166 4.09 %
other time deposits
Federal funds
purchased and 210,374 381 0.24 % 298,251 5,069 2.27 %
repurchase
agreements
Other borrowings 152,691 4,547 3.98 % 163,772 5,252 4.28 %
Total
interest-bearing 2,200,661 29,927 1.82 % 2,161,063 46,848 2.90 %
liabilities
Noninterest-Bearing
Liabilities:
Demand deposits 324,123 314,940
Other liabilities 16,934 14,856
Total
noninterest-bearing 341,057 329,796
liabilities
("Non-IBL")
Shareholders' 294,035 220,688
equity
Total Non-IBL and
shareholders' 635,092 550,484
equity
Total liabilities
and shareholders' $ 2,835,753 $ 2,711,547
equity
Net interest income
and margin (NON-TAX $ 77,398 3.95 % $ 71,133 3.78 %
EQUIV.)
Net interest margin 3.98 % 3.82 %
(TAX EQUIVALENT)
Three Months Ended
Nine Months Ended
September 30, YTD
September 2009 -
September 30, June 30, March 31, December 31, 30, 2009 - 2008
2009 2009 2008 2008
NONINTEREST INCOME 2009 2008 2009 2008 % Change
& EXPENSE ange
Noninterest income:
Service charges on $ 4,089 $ 3,819 $ 3,585 $ 4,123 $ 4,157 -1.6 % $ 11,493 $ 11,994 -4.2 %
deposit accounts
Mortgage banking 1,451 2,134 1,261 678 507 186.2 % 4,846 2,777 74.5 %
income
Bankcard services 1,278 1,290 1,182 1,153 1,247 2.5 % 3,750 3,679 1.9 %
income
Trust and
investment services 588 671 691 654 725 -18.9 % 1,950 2,102 -7.2 %
income
Securities gains (2,122 ) (544 ) -- (507 ) (9,760 ) (2,666 ) (9,420 )
(losses), net
Other 307 391 412 9 431 -28.8 % 1,110 1,807 -38.6 %
Total noninterest $ 5,591 $ 7,761 $ 7,131 $ 6,110 $ (2,693 ) -307.6 % $ 20,483 $ 12,939 58.3 %
income
Noninterest
expense:
Salaries and $ 10,649 $ 9,517 $ 10,519 $ 10,306 $ 10,164 4.8 % $ 30,685 $ 32,248 -4.8 %
employee benefits
Net occupancy 1,582 1,559 1,583 1,583 1,528 3.5 % 4,724 4,520 4.5 %
expense
Furniture and 1,507 1,499 1,560 1,579 1,577 -4.4 % 4,566 4,667 -2.2 %
equipment expense
Information 1,381 1,286 1,442 1,309 1,249 10.6 % 4,109 3,569 15.1 %
services expense
FDIC assessment and
other regulatory 956 2,333 1,184 483 457 109.2 % 4,473 1,354 230.4 %
charges
OREO expense and 2,497 1,367 674 864 362 589.8 % 4,538 892 408.7 %
loan related
Advertising and 579 571 650 1,088 771 -24.9 % 1,800 2,782 -35.3 %
marketing
Business
development and 367 449 441 600 470 -21.9 % 1,257 1,583 -20.6 %
staff related
Professional fees 376 557 434 605 597 -37.0 % 1,367 1,638 -16.5 %
Amortization of 131 132 131 142 144 -9.0 % 394 433 -9.0 %
intangibles
Merger expense -- -- -- 405 -- -- --
Other 1,772 1,768 1,569 1,912 1,777 -0.3 % 5,109 5,234 -2.4 %
Total noninterest $ 21,797 $ 21,038 $ 20,187 $ 20,876 $ 19,096 14.1 % $ 63,022 $ 58,920 7.0 %
expense
Notes:
(1) Loan data excludes mortgage loans held for sale.
(2) Repossessed assets includes OREO and other nonperforming assets.
Source: SCBT Financial Corporation
Contact: SCBT Financial Corporation
Media Contact: Donna Pullen, 803-765-4558
Analyst Contact: John C. Pollok, 803-765-4628