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 and
year-ended December 31, 2009. The Company reported solid results due
primarily to its improved net interest margin, noninterest income from
mortgage banking operations and good expense control. The following
occurred during 2009:
-- Core deposits, excluding CDs, increased $219.6 million, or 22%;
-- Allowance for loan losses increased to 1.70% of total loans from 1.36%
one year ago;
-- Net interest margin improved by 22 basis points to 4.05% from 3.83%;
-- Recorded pre-tax Other Than Temporary Impairment ("OTTI") charges
related to pooled trust preferred securities of $5.0 million;
-- Raised $29.2 million of new capital in May 2009 with the issuance of
1.356 million shares of common stock; and
-- SCBT was one of the first banks in the country to redeem the preferred
stock ($64.8 million) and common stock warrant ($1.4 million) issued to
the US Treasury under the Troubled Asset Relief Program ("TARP");
"SCBT has been one of the few banks to be profitable in every quarter of
this downturn," said Robert R. Hill, Jr., President and CEO. "We saw
significant increases in business with a 22% increase in core deposits,
and $800 million in mortgage loans closed during the year. In addition,
we have been fortunate to continue to add many talented bankers during
the year, and our team expanded into the Spartanburg, SC market in the
fourth quarter. We have weathered this economic storm nicely and are
well prepared for 2010."
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 February 19, 2010 to shareholders of record as of February
12, 2010.
Fourth Quarter 2009 Results of Operations
Please refer to the accompanying tables for detailed comparative data
on results of operations and financial results, as well as certain
information concerning non-GAAP financial information.
The Company reported consolidated net income of $1.5 million, or $0.12
per diluted share for the three months ended December 31, 2009 compared
to consolidated net income of $3.5 million, or $0.32 per diluted share
for the fourth quarter of 2008, a $2.0 million decrease. This decrease
was primarily the net result of the following items:
-- Net interest income increased by $2.5 million or 10%;
-- Increase in the provision for loan losses of $5.8 million or 132%;
-- Increase in the amount of securities losses (OTTI) of $1.8 million;
-- Other income increased by $440,000 due primarily to BOLI and fixed asset
losses recorded in 2008 vs. gains in 2009;
-- Mortgage banking income increased by $1.0 million or 152%;
-- Non-interest expenses decreased by $252,000 due primarily to the merger
expenses of $405,000 recognized in 2008; and
-- Provision for income taxes declined by $1.3 million due to lower pre-tax
net income.
"The Company's net interest margin continued to improve as the average
balance of all CDs declined by more than $93 million and the average
yield improved (decreased) by 41 basis points. This resulted in the net
interest margin improving to 4.28% compared to 4.04% during the third
quarter of 2009," said John C. Pollok, COO. "On a linked quarter basis,
we also saw a nice decline in the amount of OREO expenses by $1.4
million which led to a much improved efficiency ratio of 58.1% for the
fourth quarter."
The Company's annualized return on average assets (ROAA) for the fourth
quarter decreased to 0.22% compared to 0.51% for the fourth quarter of
2008 and to 0.31% for the third quarter of 2009. Total average
shareholders' equity at December 31, 2009 was $284.3 million, an
increase of $44.6 million, or 18.6% from December 31, 2008. This
increase was due primarily to the issuance of 1.356 million shares of
common stock in May 2009 which raised approximately $29.2 million in new
capital, and net income during the year of $13.6 million. Annualized
return on average equity (ROAE) for the quarter was 2.12%, down from
5.89% for the fourth quarter of 2008. Annualized return on average
tangible equity (ROATE) for the fourth quarter decreased to 2.92% from
8.46% for the comparable period in the prior year and from 4.13% in the
third quarter of 2009.
Asset Quality
Annualized net charge-offs increased to 1.26% from 0.92% experienced in
the third quarter of 2009, and increased from 0.35% experienced in the
fourth quarter of 2008. During the fourth quarter, non-performing assets
(NPAs) as a percentage of total loans and repossessed assets increased
to 2.40% compared to 1.96% in the third quarter of 2009 and 0.91% one
year ago. NPAs to total assets at December 31, 2009 were 1.96% compared
to 1.56% at the end of the third quarter of 2009 and 0.76% 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 fourth quarter, the Company's other real estate owned
("OREO") decreased by $1.1 million from the prior quarter end, and by
$3.0 million from December 31, 2008. Non-performing loans (including
accruing loans past due 90 days or more) increased $12.5 million from
the third quarter of 2009, and by $34.8 million from the fourth quarter
in 2008.
At December 31, 2009, nonperforming loans totaled $49.7 million,
representing 2.26% of period-end loans. OREO at the end of the fourth
quarter was $3.1 million, down from $6.1 million at December 31, 2008
and from $4.2 million at the end of the third quarter of 2009. The
allowance for loan losses at December 31, 2009 was $37.5 million and
represented 1.70% of total period-end loans. The current allowance for
loan losses provides 0.75 times coverage of period-end nonperforming
loans, down from 0.92 times in the third quarter of 2009 and 2.11 times
at December 31, 2008. In the fourth quarter, net charge-offs were $7.0
million compared to $5.1 million in the previous quarter and $2.0
million one year ago. The provision for loan losses was $10.2 million
for the fourth quarter of 2009 compared to $4.4 million for the
comparable quarter one year ago, and $7.0 million in the third quarter
of 2009.
The Company's recorded balance of the four assets related to Silverton
was approximately $1.04 million at December 31, 2009. The Company has
written off approximately $5.4 million related to these assets during
2009. These assets have now been valued at approximately sixteen cents
on the dollar of the original loan amount. In addition, two loan
participations have been moved to OREO during the year. During the
fourth quarter of 2009, the Company did not record any additional losses
related to these assets. However, the Company received a partial payment
related to one of the assets classified in OREO, and reduced the
carrying value of this asset by $172,000.
Loans and Deposits
The Company decreased total loans 4.9% since the fourth quarter of 2008,
driven by reductions in construction and land development loans of $68.3
million, commercial and industrial loans of $37.8 million, consumer non
real estate loans of $26.3 million, commercial non owner occupied loans
of $27.1 million, consumer owner occupied loans of $9.0 million and
other loans of $12.8 million. Offsetting the loan reductions has been
loan growth in home equity loans of $26.6 million and commercial owner
occupied loans of $45.8 million. Total loans outstanding were $2.2
billion at December 31, 2009 compared to $2.3 billion at December 31,
2008. The balance of mortgage loans held for sale increased $1.8 million
from December 31, 2008 to $17.6 million at December 31, 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 December 31, 2009.
Total deposits decreased compared to the fourth quarter of 2008 by $48.6
million, or 2.3%. Certificates of deposit ("CDs") less than $100,000 and
CDs more than $100,000 decreased by $268.3 million, which was mostly
offset by the other deposit categories. Given the decline in CD
balances, total deposits decreased by $22.5 million, or 4.2% annualized,
from the end of the third 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 $141.8 million increase, or 50.9%; savings accounts have grown
$22.0 million, or 15.5%; NOW accounts have grown by $13.3 million, or
4.5%; and demand deposits have grown by $42.6 million, or 14.0%. The
Company has continued 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 at December 31,
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 year.
In addition, during 2009, the Company has increased its correspondent
relationships with a number of smaller financial institutions which has
contributed to the increase in 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 $55 million to $104.9 million at December 31, 2009 from the end of
2008.
Net Interest Income and Margin
Non-taxable equivalent net interest income (before provision for loan
losses) was $27.2 million for the fourth quarter of 2009, up 10.3% from
$24.6 million in the comparable period last year. Tax-equivalent net
interest margin increased 42 basis points from the fourth quarter of
2008 to 4.28%. Compared to the third quarter of 2009, tax-equivalent net
interest margin increased 24 basis points. This increase was the result
of earning approximately 5 additional basis points on interest earning
assets during the quarter moving from 5.31% to 5.36% (primarily in
loans), while lowering interest expense on interest bearing liabilities
by 19 basis points (primarily in time deposits). 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 all of
2009. The Company continued to focus on increasing core deposits with a
$36.0 million increase or 12.0%, on a link quarter basis, and has
allowed $56.8 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 56
basis points while the average rate on interest-bearing liabilities
decreased 106 basis points from the fourth quarter of 2008. During the
fourth quarter of 2009, the Company's average total assets decreased to
$2.7 billion, a 0.7% decrease over the fourth quarter of 2008.
Offsetting the decrease was the increase in average short-term
investments to $115.2 million, a $103.3 million increase from the fourth
quarter of 2008, and the increase in loans held for sale to $19.7, a
$9.0 million increase from the fourth quarter of 2008. All other average
earning asset categories decreased as compared to the fourth quarter of
2008. The lower current market rates in combination with variable rate
loan resets resulted in the average yield on loans falling by 29 basis
points compared to the fourth quarter of 2008. Average investment
securities were $215.6 million at December 31, 2009, or 7.2% lower than
the balance in 2008. The decrease in average total assets also allowed
the Company to reduce the level of funding from higher priced CDs and
average total deposits decreased by $37.3 million, a decrease of 1.7%
from the fourth quarter of 2008.
Noninterest Income and Expense
Noninterest income was $5.8 million for the fourth quarter of 2009
compared to $6.1 million for the fourth quarter of 2008, a decrease of
$347,000. This decrease is primarily the result in the increase of
securities losses of $1.75 million from the OTTI charge recorded on the
Company's pooled trust preferred securities. This decrease was offset
primarily by two line items:
-- $1.0 million, or 152%, increase in mortgage banking income as the
Company continued to experience steady mortgage lending activity during
the fourth quarter of 2009, and
-- an increase in other income by $440,000 due primarily to an increase in
returns on bank owned life insurance of $260,000, and gains associated
with the sale of fixed assets of $127,000.
Compared to the third quarter of 2009, noninterest income was up by
$172,000, primarily driven by mortgage banking income which was up by
$255,000, and was partially offset by an OTTI charge of $83,000 related
to certain equity investments.
Noninterest expense was $20.6 million in the fourth quarter of 2009, a
1.2% decrease or $252,000, compared to $20.9 million in the fourth
quarter of 2008. During the fourth quarter, the Company had increased
costs in two specific areas: (1) OREO expense and loan related costs
were higher by $239,000 and (2) FDIC assessments were higher by
$493,000. The Company managed the other expense categories to more than
offset these increases.
The Company's quarterly efficiency ratio improved to 58.1% compared to
63.5% in the third quarter of 2009, and 65.1% one year ago. For the year
ended December 31, 2009 and 2008, the efficiency ratio was 61.2% and
63.2%, respectively, reflecting a 2.0% improvement.
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 over 75 years, SCBT Financial Corporation operates 48
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 $2.7 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.
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
Twelve Months Ended
Fourth December 31, YTD
Quarter 2009 -
2009 - 2008
December 31, September 30, June 30, March 31, December 31, 2008 %
EARNINGS SUMMARY 2009 2009 2009 2009 2008 % Change
(non tax Change 2009 2008
equivalent)
Interest income $ 34,473 $ 35,020 $ 35,857 $ 36,448 $ 38,094 -9.5 % $ 141,798 $ 156,075 -9.1 %
Interest expense 7,281 8,639 9,838 11,450 13,450 -45.9 % 37,208 60,298 -38.3 %
Net interest income 27,192 26,381 26,019 24,998 24,644 10.3 % 104,590 95,777 9.2 %
Provision for loan 10,158 6,990 4,521 5,043 4,374 132.2 % 26,712 10,736 148.8 %
losses (1)
Noninterest income 5,763 5,591 7,761 7,131 6,110 -5.7 % 26,246 19,049 37.8 %
Noninterest expense 20,624 21,797 21,038 20,187 20,876 -1.2 % 83,646 79,796 4.8 %
Income before
provision for 2,173 3,185 8,221 6,899 5,504 -60.5 % 20,478 24,294 -15.7 %
income taxes
Provision for 654 1,014 2,836 2,379 1,955 -66.5 % 6,883 8,509 -19.1 %
income taxes
Net income 1,519 2,171 5,385 4,520 3,549 -57.2 % 13,595 15,785 -13.9 %
Preferred stock -- -- 450 665 -- 1,115 --
dividends
Accretion on
preferred stock -- -- 3,410 149 -- 3,559 --
discount
Net income
available to common $ 1,519 $ 2,171 $ 1,525 $ 3,706 $ 3,549 -57.2 % $ 8,921 $ 15,785 -43.5 %
shareholders
Basic
weighted-average 12,572,751 12,546,654 11,826,972 11,179,869 10,846,219 15.9 % 12,060,847 10,301,430 17.1 %
common shares
Diluted
weighted-average 12,633,484 12,604,762 11,870,522 11,226,078 10,949,411 15.4 % 12,108,614 10,393,717 16.5 %
common shares
Earnings per common $ 0.12 $ 0.17 $ 0.13 $ 0.33 $ 0.33 -63.6 % $ 0.74 $ 1.53 -51.6 %
share - Basic
Earnings per common 0.12 0.17 0.13 0.33 0.32 -62.5 % 0.74 1.52 -51.3 %
share - Diluted
Cash dividends
declared per common $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17 0.0 % $ 0.68 $ 0.68 0.0 %
share
Dividend payout 99.67 % 141.59 % 52.02 % 54.24 % 1550.42 % -93.6 % 74.66 % 40.93 % 27.8 %
ratio
AVERAGE for Quarter Ended AVERAGE for Twelve Months
Quarter YTD
2009 - 2009 -
BALANCE SHEET December 31, September 30, June 30, March 31, December 31, 2008 December December 2008
HIGHLIGHTS 2009 2009 2009 2009 2008 % 31, 31, %
Change 2009 2008 Change
Loans held for sale $ 19,670 $ 20,763 $ 48,132 $ 36,484 $ 10,684 84.1 % $ 31,187 $ 17,022 83.2 %
Total loans (1) 2,199,074 2,221,078 2,268,292 2,307,322 2,304,911 -4.6 % 2,248,568 2,220,448 1.3 %
Total investment 215,609 202,692 199,293 213,849 232,446 -7.2 % 207,851 247,196 -15.9 %
securities
Intangible assets 65,740 65,871 66,002 66,134 66,268 -0.8 % 65,935 66,001 -0.1 %
Earning assets 2,549,507 2,617,386 2,587,286 2,643,376 2,559,920 -0.4 % 2,604,028 2,523,573 3.2 %
Total assets 2,749,157 2,806,974 2,812,215 2,868,847 2,768,864 -0.7 % 2,813,926 2,725,955 3.2 %
Noninterest-bearing 346,576 334,165 321,038 316,978 315,841 9.7 % 329,782 315,167 4.6 %
deposits
Interest-bearing 1,757,463 1,820,139 1,826,704 1,866,454 1,825,501 -3.7 % 1,817,399 1,730,828 5.0 %
deposits
Total deposits 2,104,039 2,154,304 2,147,742 2,183,432 2,141,342 -1.7 % 2,147,181 2,045,995 4.9 %
Federal funds
purchased and 203,197 229,806 197,636 203,391 190,409 6.7 % 208,565 271,143 -23.1 %
repurchase
agreements
Other borrowings 143,786 144,180 149,570 164,546 183,159 -21.5 % 150,446 168,645 -10.8 %
Shareholders'
common equity 284,335 282,953 265,793 249,429 239,769 18.6 % 270,757 225,484 20.1 %
(excludes preferred
stock)
Shareholders' 284,335 282,953 298,849 300,497 239,769 18.6 % 291,590 225,484 29.3 %
equity
ENDING Balance
Quarter
2009 -
BALANCE SHEET December 31, September 30, June 30, March 31, December 31, 2008
HIGHLIGHTS 2009 2009 2009 2009 2008 %
Change
Loans held for sale $ 17,563 $ 20,077 $ 53,853 $ 43,603 $ 15,742 11.6 %
Total loans (1) 2,203,238 2,209,403 2,236,162 2,292,654 2,316,076 -4.9 %
Total investment 211,112 212,228 191,415 204,032 222,227 -5.0 %
securities
Intangible assets 65,696 65,827 65,959 66,090 66,221 -0.8 %
Allowance for loan (37,488 ) (34,297 ) (32,431 ) (32,094 ) (31,525 ) 18.9 %
losses (1)
Premises and 71,829 72,523 73,404 73,606 66,392 8.2 %
equipment
Total assets 2,702,188 2,776,684 2,807,309 2,839,584 2,766,710 -2.3 %
Noninterest-bearing 346,248 335,565 322,270 315,727 303,689 14.0 %
deposits
Interest-bearing 1,758,391 1,791,554 1,858,096 1,836,141 1,849,585 -4.9 %
deposits
Total deposits 2,104,639 2,127,119 2,180,366 2,151,868 2,153,274 -2.3 %
Federal funds
purchased and 162,515 211,606 187,677 205,985 172,393 -5.7 %
repurchase
agreements
Other borrowings 143,624 144,048 144,430 152,799 177,477 -19.1 %
Total liabilities 2,419,369 2,494,901 2,527,557 2,528,404 2,521,782 -4.1 %
Shareholders'
common equity 282,819 281,783 279,752 249,811 244,928 15.5 %
(excludes preferred
stock)
Shareholders' 282,819 281,783 279,752 311,180 244,928 15.5 %
equity
Common shares
issued and 12,739,533 12,712,476 12,696,849 11,319,644 11,250,603 13.2 %
outstanding
Quarter
NONPERFORMING December 31, September 30, June 30, March 31, December 31, 2009 -
ASSETS (ENDING 2009 2009 2009 2009 2008 2008
balance) %
Change
Nonaccrual loans $ 49,492 $ 36,605 $ 29,379 $ 20,730 $ 14,624 238.4 %
Other real estate 3,102 4,189 9,165 9,563 6,126 -49.4 %
owned ("OREO")
Accruing loans past 241 585 559 614 293 -17.7 %
due 90 days or more
Other nonperforming 31 13 -- 40 84 -63.1 %
assets
Restructured loans -- 1,974 1,951 -- --
Total nonperforming $ 52,866 $ 43,366 $ 41,054 $ 30,947 $ 21,127 150.2 %
assets
Total nonperforming
assets as a
percentage of total 2.40 % 1.96 % 1.83 % 1.34 % 0.91 %
loans and
repossessed assets
(1) (2)
Total nonperforming
assets as a 1.96 % 1.56 % 1.46 % 1.09 % 0.76 %
percentage of total
assets
NPLs as a
percentage of 2.26 % 1.68 % 1.34 % 0.93 % 0.64 %
period end loans
Quarter Ended Twelve Months Ended
Quarter YTD
2009 - 2009 -
ALLOWANCE FOR LOAN December 31, September 30, June 30, March 31, December 31, 2008 December December 2008
LOSSES (1) 2009 2009 2009 2009 2008 % 31, 31, %
Change 2009 2008 Change
Balance at $ 34,297 $ 32,431 $ 32,094 $ 31,525 $ 29,199 17.5 % $ 31,525 $ 26,570 18.6 %
beginning of period
Loans charged off (6,881 ) (5,103 ) (4,295 ) (4,779 ) (1,980 ) 247.5 % (21,058 ) (5,721 ) 268.1 %
Overdrafts charged (277 ) (271 ) (230 ) (214 ) (299 ) -7.4 % (992 ) (1,033 ) -4.0 %
off
Loan recoveries 96 195 262 390 121 -20.7 % 943 593 59.0 %
Overdraft 95 55 79 129 110 -13.6 % 358 380 -5.8 %
recoveries
Net charge-offs (6,967 ) (5,124 ) (4,184 ) (4,474 ) (2,048 ) 240.2 % (20,749 ) (5,781 ) 258.9 %
Provision for loan 10,158 6,990 4,521 5,043 4,374 132.2 % 26,712 10,736 148.8 %
losses
Balance at end of $ 37,488 $ 34,297 $ 32,431 $ 32,094 $ 31,525 18.9 % $ 37,488 $ 31,525 18.9 %
period
Allowance for loan
losses as a 1.70 % 1.55 % 1.45 % 1.40 % 1.36 % 1.70 % 1.36 %
percentage of total
loans (1)
Allowance for loan
losses as a 75.38 % 92.22 % 108.33 % 150.37 % 211.34 % 75.38 % 211.34 %
percentage of
nonperforming loans
Net charge-offs as
a percentage of 1.26 % 0.92 % 0.74 % 0.79 % 0.35 % 0.92 % 0.26 %
average loans
(annualized) (1)
Provision for loan
losses as a
percentage of 1.83 % 1.25 % 0.80 % 0.89 % 0.75 % 1.19 % 0.48 %
average total loans
(annualized) (1)
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
LOAN PORTFOLIO December 31, December 31,
(ENDING balance) 2009 % of Total 20% of Total
(1)
Commercial
non-owner occupied
real estate:
Construction and $ 467,284 21.2 % $ 535,638 23.1 %
land development
Commercial 303,650 13.8 % 330,792 14.3 %
non-owner occupied
Total commercial
non-owner occupied 770,934 35.0 % 866,430 37.4 %
real estate
Consumer real
estate:
Consumer owner 284,484 12.9 % 293,521 12.7 %
occupied
Home equity loans 248,639 11.3 % 222,025 9.6 %
Total consumer real 533,123 24.2 % 515,546 22.3 %
estate
Total real estate 1,304,057 59.2 % 1,381,976 59.7 %
Commercial owner
occupied real 469,101 21.3 % 423,345 18.3 %
estate
Commercial and 214,174 9.7 % 251,929 10.9 %
industrial
Other income 137,736 6.3 % 141,516 6.1 %
producing property
Consumer non real 68,770 3.1 % 95,098 4.1 %
estate
Other 9,400 0.4 % 22,212 1.0 %
Total loans (net of
unearned income) $ 2,203,238 100.0 % $ 2,316,076 100.0 %
(1)
Loans held for sale $ 17,563 $ 15,742
Quarter Ended Twelve Months Ended
SELECTED RATIOS December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2009 2009 2009 2009 2008 2009 2008
Return on average 0.22 % 0.31 % 0.77 % 0.64 % 0.51 % 0.48 % 0.58 %
assets (annualized)
Return on average
common equity 2.12 % 3.04 % 2.30 % 6.03 % 5.89 % 3.29 % 7.00 %
(annualized)
Return on average
common tangible 2.92 % 4.13 % 3.24 % 8.49 % 8.46 % 4.53 % 10.26 %
equity (annualized)
Return on average 2.12 % 3.04 % 7.23 % 6.10 % 5.89 % 4.66 % 7.00 %
equity (annualized)
Return on average
tangible equity 2.92 % 4.13 % 9.43 % 8.05 % 8.46 % 6.18 % 10.26 %
(annualized)
Net interest margin 4.28 % 4.04 % 4.07 % 3.87 % 3.86 % 4.05 % 3.83 %
(tax equivalent)
Efficiency ratio 58.10 % 63.47 % 60.88 % 62.41 % 65.05 % 61.17 % 63.17 %
(tax equivalent)
Book value per $ 22.20 $ 22.17 $ 22.03 $ 22.07 $ 21.77
common share
Tangible book value $ 17.04 $ 16.99 $ 16.84 $ 16.23 $ 15.88
per common share
Common shares
issued and 12,739,533 12,712,476 12,696,849 11,319,644 11,250,603
outstanding
Common 10.47 % 10.15 % 9.97 % 8.80 % 8.85 %
equity-to-assets
Tangible common
equity-to-tangible 8.24 % 7.97 % 7.80 % 6.62 % 6.62 %
assets
Equity-to-assets 10.47 % 10.15 % 9.97 % 10.96 % 8.85 %
Tangible
equity-to-tangible 8.24 % 7.97 % 7.80 % 8.84 % 6.62 %
assets
Quarter Ended Twelve Months Ended
RECONCILIATION OF December 31, September 30, June 30, March 31, December 31, December 31, December 31,
NON-GAAP TO GAAP 2009 2009 2009 2009 2008 2009 2008
Return on Average
Common Tangible
Equity
Return on average
common tangible 2.92 % 4.13 % 3.24 % 8.49 % 8.46 % 4.53 % 10.26 %
equity (non-GAAP)
Effect to adjust -0.80 % -1.09 % -0.94 % -2.46 % -2.57 % -1.24 % -3.26 %
for tangible assets
Return on average
common equity 2.12 % 3.04 % 2.30 % 6.03 % 5.89 % 3.29 % 7.00 %
(GAAP)
Return on Average
Tangible Equity
Return on average
tangible equity 2.92 % 4.13 % 9.43 % 8.05 % 8.46 % 6.18 % 10.26 %
(non-GAAP)
Effect to adjust -0.80 % -1.09 % -2.20 % -1.95 % -2.57 % -1.52 % -3.26 %
for tangible assets
Return on average 2.12 % 3.04 % 7.23 % 6.10 % 5.89 % 4.66 % 7.00 %
equity (GAAP)
Tangible Book Value
Per Common Share
Tangible book value
per common share $ 17.04 $ 16.99 $ 16.84 $ 16.23 $ 15.88
(non-GAAP)
Effect to adjust 5.16 5.18 5.19 5.84 5.89
for tangible assets
Book value per $ 22.20 $ 22.17 $ 22.03 $ 22.07 $ 21.77
common share (GAAP)
Tangible Common
Equity-to-Tangible
Assets
Tangible common
equity-to-tangible 8.24 % 7.97 % 7.80 % 6.62 % 6.62 %
assets (non-GAAP)
Effect to adjust 2.23 % 2.18 % 2.17 % 2.18 % 2.23 %
for tangible assets
Common
equity-to-assets 10.47 % 10.15 % 9.97 % 8.80 % 8.85 %
(GAAP)
Tangible
Equity-to-Tangible
Assets
Tangible
equity-to-tangible 8.24 % 7.97 % 7.80 % 8.84 % 6.62 %
assets (non-GAAP)
Effect to adjust 2.23 % 2.18 % 2.17 % 2.12 % 2.23 %
for tangible assets
Equity-to-assets 10.47 % 10.15 % 9.97 % 10.96 % 8.85 %
(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
December 31, 2009 December 31, 2008
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 $ 115,154 $ 168 0.58 % 11,879 $ 24 0.80 %
time deposits
Investment
securities 187,803 1,996 4.22 % 200,917 2,709 5.36 %
(taxable)
Investment
securities 27,806 227 3.24 % 31,529 259 3.27 %
(tax-exempt)
Loans held for sale 19,670 257 5.18 % 10,684 151 5.62 %
Loans (1) 2,199,074 31,825 5.74 % 2,304,911 34,951 6.03 %
Total
interest-earning 2,549,507 34,473 5.36 % 2,559,920 38,094 5.92 %
assets
Noninterest-Earning
Assets:
Cash and due from 40,887 50,336
banks
Other assets 193,938 187,898
Allowance for loan (35,175 ) (29,290 )
losses
Total
noninterest-earning 199,650 208,944
assets
Total Assets $ 2,749,157 $ 2,768,864
Interest-Bearing
Liabilities:
Transaction and
money market $ 706,560 $ 1,218 0.68 % $ 558,835 $ 1,065 0.76 %
accounts
Savings deposits 162,494 200 0.49 % 146,920 310 0.84 %
Certificates and 888,409 4,314 1.93 % 1,119,746 9,742 3.46 %
other time deposits
Federal funds
purchased and 203,197 122 0.24 % 190,409 358 0.75 %
repurchase
agreements
Other borrowings 143,786 1,427 3.94 % 183,159 1,975 4.29 %
Total
interest-bearing 2,104,446 7,281 1.37 % 2,199,069 13,450 2.43 %
liabilities
Noninterest-Bearing
Liabilities:
Demand deposits 346,576 315,841
Other liabilities 13,800 14,185
Total
noninterest-bearing 360,376 330,026
liabilities
("Non-IBL")
Shareholders' 284,335 239,769
equity
Total Non-IBL and
shareholders' 644,711 569,795
equity
Total liabilities
and shareholders' $ 2,749,157 $ 2,768,864
equity
Net interest income
and margin (NON-TAX $ 27,192 4.23 % $ 24,644 3.83 %
EQUIV.)
Net interest margin 4.28 % 3.86 %
(TAX EQUIVALENT)
Twelve Months Ended
December 31, 2009 December 31, 2008
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 $ 116,422 $ 591 0.51 % $ 38,907 $ 909 2.34 %
time deposits
Investment
securities 179,148 8,501 4.75 % 210,436 11,065 5.26 %
(taxable)
Investment
securities 28,703 936 3.26 % 36,760 1,471 4.00 %
(tax-exempt)
Loans held for sale 31,187 1,513 4.85 % 17,022 967 5.68 %
Loans (1) 2,248,568 130,257 5.79 % 2,220,448 141,663 6.38 %
Total
interest-earning 2,604,028 141,798 5.45 % 2,523,573 156,075 6.18 %
assets
Noninterest-Earning
Assets:
Cash and due from 44,192 51,747
banks
Other assets 198,467 178,824
Allowance for loan (32,761 ) (28,189 )
losses
Total
noninterest-earning 209,898 202,382
assets
Total Assets $ 2,813,926 $ 2,725,955
Interest-Bearing
Liabilities:
Transaction and
money market $ 658,030 $ 4,175 0.63 % $ 565,815 $ 6,030 1.07 %
accounts
Savings deposits 155,797 755 0.48 % 145,579 1,706 1.17 %
Certificates and 1,003,572 25,801 2.57 % 1,019,434 39,908 3.91 %
other time deposits
Federal funds
purchased and 208,565 502 0.24 % 271,143 5,427 2.00 %
repurchase
agreements
Other borrowings 150,446 5,975 3.97 % 168,645 7,227 4.29 %
Total
interest-bearing 2,176,410 37,208 1.71 % 2,170,616 60,298 2.78 %
liabilities
Noninterest-Bearing
Liabilities:
Demand deposits 329,782 315,167
Other liabilities 16,144 14,688
Total
noninterest-bearing 345,926 329,855
liabilities
("Non-IBL")
Shareholders' 291,590 225,484
equity
Total Non-IBL and
shareholders' 637,516 555,339
equity
Total liabilities
and shareholders' $ 2,813,926 $ 2,725,955
equity
Net interest income
and margin (NON-TAX $ 104,590 4.02 % $ 95,777 3.80 %
EQUIV.)
Net interest margin 4.05 % 3.83 %
(TAX EQUIVALENT)
Three Months Ended
Twelve Months Ended
December 31, YTD
September 2009 -
December 31, 30, June 30, March 31, December 2009 - 2008
2009 2009 2009 31, 2008 % Change
NONINTEREST INCOME 2009 2008 2009ange 2008
& EXPENSE
Noninterest income:
Service charges on $ 4,005 $ 4,089 $ 3,819 $ 3,585 $ 4,123 -2.9 % $ 15,498 $ 16,117 -3.8 %
deposit accounts
Mortgage banking 1,706 1,451 2,134 1,261 678 151.6 % 6,552 3,455 89.6 %
income
Bankcard services 1,293 1,278 1,290 1,182 1,153 12.1 % 5,043 4,832 4.4 %
income
Trust and
investment services 567 588 671 691 654 -13.3 % 2,517 2,756 -8.7 %
income
Securities gains (2,257 ) (2,122 ) (544 ) -- (507 ) (4,923 ) (9,927 )
(losses), net
Other 449 307 391 412 9 4888.9 % 1,559 1,816 -14.2 %
Total noninterest $ 5,763 $ 5,591 $ 7,761 $ 7,131 $ 6,110 -5.7 % $ 26,246 $ 19,049 37.8 %
income
Noninterest
expense:
Salaries and $ 10,102 $ 10,649 $ 9,517 $ 10,519 $ 10,306 -2.0 % $ 40,787 $ 42,554 -4.2 %
employee benefits
Net occupancy 1,668 1,582 1,559 1,583 1,583 5.4 % 6,392 6,103 4.7 %
expense
Furniture and 1,483 1,507 1,499 1,560 1,579 -6.1 % 6,049 6,246 -3.2 %
equipment expense
Information 1,448 1,381 1,286 1,442 1,309 10.6 % 5,557 4,878 13.9 %
services expense
FDIC assessment and
other regulatory 976 956 2,333 1,184 483 102.1 % 5,449 1,837 196.6 %
charges
OREO expense and 1,103 2,497 1,367 674 864 27.7 % 5,641 1,759 220.7 %
loan related
Advertising and 697 579 571 650 1,088 -35.9 % 2,497 3,870 -35.5 %
marketing
Business
development and 690 367 449 441 600 15.0 % 1,947 2,184 -10.9 %
staff related
Professional fees 415 376 557 434 605 -31.4 % 1,782 2,243 -20.6 %
Amortization of 132 131 132 131 142 -7.0 % 526 575 -8.5 %
intangibles
Merger expense -- -- -- -- 405 -- 405
Other 1,910 1,772 1,768 1,569 1,912 -0.1 % 7,019 7,142 -1.7 %
Total noninterest $ 20,624 $ 21,797 $ 21,038 $ 20,187 $ 20,876 -1.2 % $ 83,646 $ 79,796 4.8 %
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