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SCBT Reports Net Income of $7.0 million for the 1st Quarter of 2012; Declares Quarterly Cash Dividend

April 27, 2012

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 March 31, 2012. Highlights of the first quarter 2012 include the following:

  • Net income of $7.0 million, or $0.50 diluted EPS in 1Q 2012 compared to $4.8 million, or $0.35 diluted EPS in 4Q 2011 and $2.5 million, or $0.19 diluted EPS in 1Q 2011
  • Return on average assets was 0.71% annualized 1Q 2012 compared to 0.49% in 4Q 2011 and 0.27% in 1Q 2011
  • Return on average equity was 7.37% annualized 1Q 2012 compared to 5.00% in 4Q 2011 and 2.94% in 1Q 2011
  • Net charge-offs of non-acquired loans decreased to 0.66% annualized for 1Q2012, compared to 1.08% annualized for 4Q 2011 and 1.53% annualized for 1Q 2011;
  • Non-performing Assets (NPAs): 2.26% of total assets compared to 2.44% for 4Q 2011 and 2.29% for 1Q 2011; 3.72% of loans and repossessed assets, excluding acquired assets, compared to 3.82% for 4Q 2011 and 3.83% for 1Q 2011
  • Core deposits growth, excluding CDs, of $160.8 million, or 27.4% annualized, from 4Q 2011

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 May 25, 2012 to shareholders of record as of May 18, 2012.

First Quarter 2012 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 $7.0 million, or $0.50 per diluted share for the three months ended March 31, 2012. Driving this increase was a reduced provision for non-acquired loan losses and reduced other real estate owned ("OREO”) write downs due to improvement in asset quality.

“We are off to a very good start in 2012, and the results our team produced were the best we have experienced in a number of years,” said Robert R. Hill, Jr., president and CEO. These results were impacted by significant changes, improvements, and growth that our company experienced in the last year. We experienced improvements in all asset quality metrics, with net charge-offs being 66 basis points for the quarter, the lowest since the fourth quarter of 2008. Our bankers increased our core deposit base by more than $160 million, or 27% annualized growth during the quarter, and continue to strengthen our market share in the communities we serve. We did experience a decline in the non-acquired loan portfolio by $33.3 million from the end of 2011, primarily in the commercial real estate portfolio. Lastly, we announced on Tuesday that we had successfully closed the acquisition of Peoples Bancorporation, Inc. and are excited about the opportunities to expand our franchise in the fast-growing Upstate region of South Carolina.”

Asset Quality

During the first quarter of 2012, SCBT saw improvement in all asset quality metrics. These improvements were evidenced by declines in the following non-acquired categories at March 31, 2012: classified assets down to $177.5 million, loans 30-89 days past due down to $7.3 million, nonaccrual loans down to $70.0 million, and nonperforming assets down to $91.4 million.

At March 31, 2012, the allowance for non-acquired loan losses was $47.6 million or 1.95% of non-acquired period-end loans. The current allowance for loan losses provides .68 times coverage of period-end non-acquired nonperforming loans. Net charge-offs within the non-acquired portfolio were $4.1 million for the quarter or 0.66% annualized, the lowest rate since the fourth quarter of 2008.

Net Interest Income and Margin

Non-taxable equivalent net interest income was $39.0 million for the first quarter of 2012. Tax-equivalent net interest margin increased 52 basis points from the first quarter of 2011 to 4.70%; however, compared to the fourth quarter of 2011, tax-equivalent net interest margin decreased 8 basis points from 4.78%. The Company’s average yield on interest-earning assets increased 11 basis points while the average rate on interest-bearing liabilities decreased 45 basis points from the first quarter of 2011. During the first quarter of 2012, the Company’s average total assets increased to almost $4.0 billion and average earning assets increased to $3.4 billion. The growth in average total assets was supported by growth in average total deposits to $3.3 billion.

Noninterest Income and Expense

Noninterest income was $9.5 million in the first quarter of 2012. The Company saw improvements in all categories of noninterest income over the comparable period of 2011 and in some categories from the fourth quarter of 2011. These increases were partially offset by negative accretion on the FDIC indemnification asset resulting from the reduction of expected cash flows of this asset related to certain pools of CBT (including Habersham Bank) acquired loans which had improved estimated cash flows.

Noninterest expense was $35.2 million in the first quarter of 2012. The decrease from the fourth quarter of 2012 was driven by a $2.1 million decrease in OREO expense.

Balance Sheet and Capital

In the first quarter of 2012, SCBT’s total assets exceeded the $4.0 billion benchmark for the first time. The asset growth was driven by increases in investment securities and cash and cash equivalents. Offsetting these increases were declines of more than $33.0 million in both the non-acquired and acquired loan portfolios from the fourth quarter of 2011. The asset growth was supported by $102.2 million in deposit growth; an increase of $160.8 million in core deposits offset by a $59.8 million decline in CDs.

Book value per share and tangible book value per share increased to $27.51 and $22.24 per share at March 31, 2012 by $0.32 and $0.35 per share from December 31, 2011 and by $1.29 and $1.42 per share from March 31, 2011.

The total risk-based capital ratio is estimated to improve by 46 basis points from the fourth quarter of 2011, due primarily to the increase in total risk-based capital from quarterly earnings and a decrease in total risk-weighted asset base. Tier 1 leverage ratio increased by 11 basis points for the quarter. The Company’s capital positions remain “well-capitalized” by all measures at March 31, 2012.

“Our balance sheet and capital ratios remain strong as evidenced by the increase in our risk-based capital ratios and our tangible book value,” said John C. Pollok, COO and CFO. “Pre-tax, pre-provision operating income remained above $13.3 million for the quarter.”

SCBT Financial Corporation will hold a conference call on April 27th at 11 a.m. ET where management will review earnings and performance trends. Callers wishing to participate may call toll-free by dialing 866-328-3013. The number for international participants is 914-495-8535. The conference ID number is 64351991. Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com. A replay will be available beginning April 27th by 2:00 pm Eastern Time until 11:59 p.m. on May 4th. To listen to the replay, dial 855-859-2056 or 404-537-3406. The passcode is 64351991.

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 largest publicly traded bank headquartered in South Carolina; NCBT, a division of SCBT, N.A., and Community Bank & Trust, a division of SCBT, N.A. Providing financial services for over 78 years, SCBT Financial Corporation operates 76 locations in 19 South Carolina counties, 10 north Georgia counties, and Mecklenburg County in North Carolina. SCBT Financial Corporation has assets of approximately $4.5 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 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: (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; (13) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the integration of acquisitions (including, among others, Peoples), including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters; (14) the risks of fluctuations in market prices for SCBT stock that may or may not reflect economic condition or performance of SCBT; (15) the payment of dividends on SCBT being subject to regulatory supervision as well as the discretion of the SCBT board of directors; and (16) other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.

 
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
                       
First
Three Months EndedQuarter
March 31,December 31,September 30,June 30,March 31,2012 - 2011
EARNINGS SUMMARY (non tax equivalent)20122011201120112011% Change
Interest income $ 42,220 $ 43,825 $ 45,307 $ 43,331 $ 39,255 7.6 %
Interest expense   3,182     3,900     4,627     5,330     6,409   -50.4 %
Net interest income 39,038 39,925 40,680 38,001 32,846 18.9 %
Provision for loan losses (1) 2,723 7,057 8,323 4,215 10,641 -74.4 %
Noninterest income 9,473 9,663 20,791 8,792 15,873 -40.3 %
Noninterest expense   35,219     36,548     37,158     35,048     34,224   2.9 %
Income before provision for income taxes 10,569 5,983 15,990 7,530 3,854 174.2 %
Provision for income taxes   3,541     1,154     5,658     2,612     1,338   164.6 %
Net income $ 7,028   $ 4,829   $ 10,332   $ 4,918   $ 2,516   179.3 %
 
Basic weighted-average common shares 13,882,801 13,845,444 13,818,012 13,805,428 13,184,572 5.3 %
Diluted weighted-average common shares 13,951,290 13,914,814 13,883,897 13,885,921 13,272,765 5.1 %
 
Earnings per share - Basic $ 0.51 $ 0.35 $ 0.75 $ 0.36 $ 0.19 168.4 %
Earnings per share - Diluted 0.50 0.35 0.74 0.35 0.19 163.2 %
 
Cash dividends declared per share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17 0.0 %
Dividend payout ratio (2) 49.48 % 23.07 % 48.39 % 94.45 % 424.00 % -88.3 %
 
Operating Earnings (non-GAAP) (3)
Net income (GAAP) $ 7,028 $ 4,829 $ 10,332 $ 4,918 $ 2,516 179.3 %
Gains on acquisitions, net of tax -- -- (6,806 ) -- (3,420 )
Merger-related expense, net of tax   64     327     1,102     390     398   -84.0 %
Net operating earnings (loss) (non-GAAP) $ 7,092   $ 5,156   $ 4,628   $ 5,308   $ (506 ) -1501.1 %
 
Operating earnings (loss) per share - Basic $ 0.51 $ 0.37 $ 0.33 $ 0.38 $ (0.04 ) -1375.0 %
Operating earnings (loss) per share - Diluted 0.51 0.37 0.33 0.38 (0.04 ) -1375.0 %
 
First
AVERAGE for Quarter EndedQuarter
March 31,December 31,September 30,June 30,March 31,2012 - 2011
BALANCE SHEET HIGHLIGHTS20122011201120112011% Change
Loans held for sale $ 34,073 $ 52,743 $ 21,331 $ 13,385 $ 19,271 76.8 %
Acquired loans, net of allowance for acquired loan losses 357,668 386,713 400,651 370,468 360,376 -0.8 %
Non-acquired loans 2,456,080 2,467,363 2,444,185 2,366,905 2,310,586 6.3 %
Total loans (1) 2,813,748 2,854,076 2,844,836 2,737,373 2,670,962 5.3 %
FDIC receivable for loss share agreements 246,556 267,904 304,089 290,768 236,149 4.4 %
Total investment securities 324,473 317,940 304,642 236,798 248,317 30.7 %
Intangible assets 74,089 74,601 74,960 75,106 73,011 1.5 %
Earning assets 3,371,704 3,346,444 3,319,083 3,302,888 3,229,928 4.4 %
Total assets 3,957,918 3,947,773 3,935,427 3,936,572 3,795,668 4.3 %
Noninterest-bearing deposits 700,438 675,998 636,883 610,109 539,329 29.9 %
Interest-bearing deposits 2,570,595 2,614,304 2,641,606 2,658,638 2,611,307 -1.6 %
Total deposits 3,271,033 3,290,302 3,278,489 3,268,747 3,150,636 3.8 %
Federal funds purchased and repurchase agreements 229,099 194,427 195,777 224,163 226,534 1.1 %
Other borrowings 46,480 46,774 47,272 46,379 48,551 -4.3 %
Shareholders' equity 383,377 382,909 380,933 369,019 347,074 10.5 %
                       
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
First
ENDING BalanceQuarter
March 31,December 31,September 30,June 30,March 31,2012 - 2011
BALANCE SHEET HIGHLIGHTS20122011201120112011% Change
Loans held for sale $ 34,706 $ 45,809 $ 45,870 $ 17,956 $ 10,755 222.7 %
Acquired loans 369,144 402,201 435,793 379,341 417,894 -11.7 %
Non-acquired loans 2,437,314 2,470,565 2,461,613 2,405,613 2,348,309 3.8 %
Total loans (1) 2,806,458 2,872,766 2,897,406 2,784,954 2,766,203 1.5 %
FDIC receivable for loss share agreements 231,331 262,651 274,658 299,200 303,795 -23.9 %
Total investment securities 357,448 324,056 321,047 249,483 233,207 53.3 %
Intangible assets 73,926 74,426 74,949 74,915 75,421 -2.0 %
Allowance for acquired loan losses (34,355 ) (31,620 ) (29,870 ) (25,545 ) (25,833 ) 33.0 %
Allowance for non-acquired loan losses (1) (47,607 ) (49,367 ) (49,110 ) (48,180 ) (48,164 ) -1.2 %
Premises and equipment 93,209 94,250 90,020 90,529 87,326 6.7 %
Total assets 4,046,343 3,896,557 3,935,518 3,839,935 3,962,866 2.1 %
Noninterest-bearing deposits 757,777 658,454 653,923 598,112 606,140 25.0 %
Interest-bearing deposits 2,598,860 2,596,018 2,633,729 2,607,716 2,713,415 -4.2 %
Total deposits 3,356,637 3,254,472 3,287,652 3,205,828 3,319,555 1.1 %
Federal funds purchased and repurchase agreements 235,412 180,436 184,403 187,550 206,560 14.0 %
Other borrowings 46,397 46,683 46,955 46,275 46,587 -0.4 %
Total liabilities 3,659,836 3,514,777 3,553,796 3,468,830 3,596,816 1.8 %
Shareholders' equity 386,507 381,780 381,722 371,105 366,050 5.6 %
 
Common shares issued and outstanding 14,052,177 14,039,422 14,004,372 13,987,686 13,958,824 0.7 %
 
First
Quarter
March 31,December 31,September 30,June 30,March 31,2012 - 2011
NONPERFORMING ASSETS (ENDING BALANCE)20122011201120112011% Change
Non-acquired
Non-acquired nonaccrual loans $ 59,278 $ 64,170 $ 61,163 $ 57,806 $ 58,870 0.7 %
Restructured loans 10,578 11,807 11,698 10,880 11,168 -5.3 %

Other real estate owned ("OREO") not covered under FDIC loss share agreements

21,381 18,022 22,686 24,900 19,816 7.9 %
Accruing loans past due 90 days or more 130 926 495 94 339 -61.7 %
Other nonperforming assets   24     24     24     50     575   -95.8 %
Total non-acquired nonperforming assets   91,391     94,949     96,066     93,730     90,768   0.7 %
Acquired (7)
Acquired nonaccrual loans -- -- -- -- --
OREO covered under FDIC loss share agreements 61,788 65,849 79,739 74,591 77,286 -20.1 %
Acquired accruing loans past due 90 days or more -- -- -- -- --
Other nonperforming assets   215     251     347     408     308  
Total acquired nonperforming assets   62,003     66,100     80,086     74,999     77,594   -20.1 %
Total nonperforming assets $ 153,394   $ 161,049   $ 176,152   $ 168,729   $ 168,362   -8.9 %
 
Excluding Acquired Assets

Total nonperforming assets as a percentage of total non-acquired loans and repossessed assets (1) (4)

  3.72 %   3.82 %   3.87 %   3.86 %   3.83 %

Total nonperforming assets as a percentage of total assets (5)

  2.26 %   2.44 %   2.44 %   2.44 %   2.29 %
NPLs as a percentage of period end non-acquired loans   2.87 %   3.11 %   2.98 %   2.86 %   3.00 %
Including Acquired Assets

Total nonperforming assets as a percentage of total loans and repossessed assets (1) (4)

  5.31 %   5.45 %   5.91 %   5.87 %   5.88 %

Total nonperforming assets as a percentage

  3.79 %   4.13 %   4.48 %   4.39 %   4.25 %
NPLs as a percentage of period end loans   2.49 %   2.68 %   2.55 %   2.48 %   2.54 %
 
OTHER ASSET QUALITY INFORMATION
Classified Assets (Ending Balance) (11)
Classified loans $ 156,118 $ 166,383 $ 157,569 $ 163,856 $ 166,722 -6.4 %
OREO and other nonperforming assets   21,405     18,046     22,710     24,950     20,391   5.0 %
Total classified assets $ 177,523   $ 184,429   $ 180,279   $ 188,806   $ 187,113   -5.1 %
 
Tier 1 capital and non-acquired allowance for loan losses $ 406,070   $ 402,470   $ 398,231   $ 388,659   $ 384,706   5.6 %

Classified assets as a percentage of Tier 1 capital and non-acquired allowance for loan losses

  43.72 %   45.82 %   45.27 %   48.58 %   48.64 %
 
Non-acquired Loans 30-89 Day Past Due $ 7,290   $ 9,235   $ 8,371   $ 11,451   $ 12,420   -41.3 %
 
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)
                        First
Quarter EndedQuarter
March 31,December 31,September 30,June 30,March 31,2012 - 2011
ALLOWANCE FOR LOAN LOSSES (1)20122011201120112011% Change
Non-acquired Loans:
Balance at beginning of period $ 49,367 $ 49,110 $ 48,180 $ 48,164 $ 47,512 3.9 %
Loans charged off (5,344 ) (6,846 ) (7,426 ) (4,574 ) (9,200 ) -41.9 %
Overdrafts charged off (354 ) (413 ) (432 ) (196 ) (122 ) 190.2 %
Loan recoveries 1,424 409 569 454 456 212.3 %
Overdraft recoveries   216     138     112     103     169   27.8 %
Net charge-offs (4,058 ) (6,712 ) (7,177 ) (4,213 ) (8,697 ) -53.3 %
Provision for loan losses on non-acquired loans   2,298     6,969     8,107     4,229     9,349   -75.4 %
Balance at end of period, non-acquired loans   47,607     49,367     49,110     48,180     48,164   -1.2 %
Acquired Loans:
Balance at beginning of period 31,620 29,870 25,545 25,833 --
Loans charged off -- -- -- -- --
Loan recoveries   --     --     --     --     --  
Net charge-offs -- -- -- -- --
Provision for loan losses on acquired loans:

Provision for loan losses before benefit attributable to FDIC loss share agreements

2,735 1,750 4,325 (288 ) 25,833
Benefit attributable to FDIC loss share agreements   (2,310 )   (1,663 )   (4,109 )   274     (24,541 )
Net provision for loan losses on acquired loans   425     87     216     (14 )   1,292  

Provision for loan losses recorded through the FDIC loss share receivable

  2,310     1,663     4,109     (274 )   24,541  
Balance at end of period, acquired loans   34,355     31,620     29,870     25,545     25,833  
Balance at end of period, total allowance for loan losses $ 81,962   $ 80,987   $ 78,980   $ 73,725   $ 73,997   10.8 %
 
Total provision for loan losses charged to operations $ 2,723   $ 7,057   $ 8,323   $ 4,215   $ 10,641  

Allowance for non-acquired loan losses as a percentage of non-acquired loans (1)

  1.95 %   2.00 %   2.00 %   2.00 %   2.05 %

Allowance for loan losses as a percentage of total loans (1)

  2.92 %   2.82 %   2.73 %   2.65 %   2.68 %

Allowance for non-acquired loan losses as a percentage of non-acquired nonperforming loans

  68.02 %   64.19 %   66.95 %   70.05 %   68.44 %

Net charge-offs on non-acquired loans as a percentage of average non-acquired loans (annualized) (1)

  0.66 %   1.08 %   1.16 %   0.71 %   1.53 %
 
First
Quarter
March 31,December 31,September 30,June 30,March 31,2012 - 2011
LOAN PORTFOLIO (ENDING balance) (1)20122011201120112011% Change
Acquired loans $ 369,144 $ 402,201 $ 435,793 $ 379,341 $ 417,894 -11.7 %
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development 294,865 310,845 316,072 338,288 370,442 -20.4 %
Commercial non-owner occupied   284,044     299,698     304,616     306,698     332,773   -14.6 %
Total commercial non-owner occupied real estate 578,909 610,543 620,688 644,986 703,215 -17.7 %
Consumer real estate:
Consumer owner occupied 407,697 391,529 394,205 367,910 339,948 19.9 %
Home equity loans   258,054     264,986     264,588     263,667     263,331   -2.0 %
Total consumer real estate 665,751 656,515 658,793 631,577 603,279 10.4 %
Commercial owner occupied real estate 744,441 742,890 719,791 669,224 606,795 22.7 %
Commercial and industrial 216,083 220,454 216,573 215,901 206,348 4.7 %
Other income producing property 130,177 140,693 142,325 133,152 131,909 -1.3 %
Consumer non real estate 85,350 85,342 84,972 80,072 73,464 16.2 %
Other   16,603     14,128     18,471     30,701     23,299   -28.7 %
Total non-acquired loans   2,437,314     2,470,565     2,461,613     2,405,613     2,348,309   3.8 %
Total loans (net of unearned income) (1) $ 2,806,458   $ 2,872,766   $ 2,897,406   $ 2,784,954   $ 2,766,203   1.5 %
 
Loans held for sale $ 34,706   $ 45,809   $ 45,870   $ 17,956   $ 10,755   222.7 %
 
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
                   
 
Quarter Ended
March 31,December 31,September 30,June 30,March 31,
SELECTED RATIOS20122011201120112011
 
Return on average assets (annualized)   0.71 %   0.49 %   1.04 %   0.50 %   0.27 %
 
Return on average equity (annualized)   7.37 %   5.00 %   10.76 %   5.35 %   2.94 %
 
Return on average tangible equity (annualized) (non-GAAP) (10)   9.57 %   6.76 %   13.83 %   7.16 %   4.15 %
 
Net interest margin (tax equivalent)   4.70 %   4.78 %   4.95 %   4.70 %   4.18 %
 
Efficiency ratio (tax equivalent) (6)   72.02 %   73.09 %   59.97 %   74.33 %   70.17 %
 
Book value per common share $ 27.51   $ 27.19   $ 27.26   $ 26.53   $ 26.22  
 
Tangible book value per common share (non-GAAP) (10) $ 22.24   $ 21.89   $ 21.91   $ 21.18   $ 20.82  
 
Common shares issued and outstanding   14,052,177     14,039,422     14,004,372     13,987,686     13,958,824  
 
Equity-to-assets   9.55 %   9.80 %   9.70 %   9.66 %   9.24 %
 
Tangible equity-to-tangible assets (non-GAAP) (10)   7.87 %   8.04 %   7.95 %   7.87 %   7.48 %
 
Tier 1 leverage (9)   9.23 %   9.12 %   9.04 %   8.82 %   9.04 %
 
Tier 1 risk-based capital (9)   14.54 %   14.09 %   13.92 %   13.89 %   13.96 %
 
Total risk-based capital (9)   15.82 %   15.36 %   15.19 %   15.15 %   15.23 %
 
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)
                       
Three Months Ended
March 31, 2012March 31, 2011
AverageInterestAverageAverageInterestAverage
YIELD ANALYSISBalanceEarned/PaidYield/RateBalanceEarned/PaidYield/Rate
 
Interest-Earning Assets:
Federal funds sold, reverse repo, and time deposits $ 199,410 $ 212 0.43 % 291,378 $ 353 0.49 %
Investment securities (taxable) 300,952 2,036 2.72 % 218,394 1,858 3.45 %
Investment securities (tax-exempt) 23,521 195 3.33 % 29,923 216 2.93 %
Loans held for sale 34,073 321 3.79 % 19,271 145 3.05 %
Acquired loans, net of allowance for acquired loan losses 357,668 9,110 10.24 % 360,376 7,044 7.93 %
Non-acquired loans (1)   2,456,080     30,346 4.97 %   2,310,586     29,639 5.20 %
Total interest-earning assets 3,371,704 42,220 5.04 % 3,229,928 39,255 4.93 %
 
Noninterest-Earning Assets:
Cash and due from banks 92,208 80,777
Other assets 543,323 532,137
Allowance for non-acquired loan losses   (49,317 )   (47,174 )
Total noninterest-earning assets   586,214     565,740  
Total Assets $ 3,957,918   $ 3,795,668  
 
Interest-Bearing Liabilities:
Transaction and money market accounts $ 1,430,819 $ 1,007 0.28 % $ 1,251,225 $ 2,174 0.70 %
Savings deposits 268,251 146 0.22 % 228,626 262 0.46 %
Certificates and other time deposits 871,526 1,341 0.62 % 1,131,456 3,281 1.18 %
Federal funds purchased and repurchase agreements 229,099 126 0.22 % 226,534 160 0.29 %
Other borrowings   46,480     562 4.86 %   48,551     532 4.44 %
Total interest-bearing liabilities 2,846,175 3,182 0.45 % 2,886,392 6,409 0.90 %
 
Noninterest-Bearing Liabilities:
Demand deposits 700,438 539,329
Other liabilities   27,928     22,873  
Total noninterest-bearing liabilities ("Non-IBL") 728,366 562,202
Shareholders' equity   383,377     347,074  
Total Non-IBL and shareholders' equity   1,111,743     909,276  
Total liabilities and shareholders' equity $ 3,957,918   $ 3,795,668  
   
Net interest income and margin (NON-TAX EQUIV.) $ 39,038 4.66 % $ 32,846 4.12 %
Net interest margin (TAX EQUIVALENT) 4.70 % 4.18 %
                       
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)
First
Three Months EndedQuarter
March 31,December 31,September 30,June 30,March 31,2012 - 2011
NONINTEREST INCOME & EXPENSE20122011201120112011% Change
Noninterest income:
Gain on acquisition $ -- $ -- $ 11,001 $ -- $ 5,528
Service charges on deposit accounts 5,447 5,959 6,050 5,615 5,030 8.3 %
Mortgage banking income 1,830 1,942 2,341 1,125 863 112.1 %
Bankcard services income 3,320 3,037 2,980 3,045 2,659 24.9 %
Trust and investment services income 1,397 1,237 1,453 1,525 1,249 11.8 %
Securities gains (losses), net (8) -- (25 ) (100 ) 10 323 100.0 %
Accretion (amortization) on FDIC indemnification asset (3,233 ) (3,086 ) (3,515 ) (3,133 ) (401 ) -706.2 %
Other   712     599     581     605     622   14.5 %
Total noninterest income $ 9,473   $ 9,663   $ 20,791   $ 8,792   $ 15,873   -40.3 %
 
Noninterest expense:
Salaries and employee benefits $ 18,048 $ 16,930 $ 17,345 $ 18,016 $ 16,646 8.4 %
Federal Home Loan Bank advances prepayment fee -- -- -- -- --
Net occupancy expense 2,248 2,309 2,443 2,346 2,525 -11.0 %
Furniture and equipment expense 2,239 2,211 2,127 2,181 1,986 12.7 %
Information services expense 2,468 2,817 2,851 2,503 2,322 6.3 %
FDIC assessment and other regulatory charges 1,037 980 859 1,255 1,479 -29.9 %
OREO expense and loan related 2,716 4,835 4,037 2,662 2,517 7.9 %
Advertising and marketing 757 707 824 289 909 -16.7 %
Business development and staff related 752 944 771 873 805 -6.6 %
Professional fees 633 253 458 616 449 41.0 %
Amortization of intangibles 500 523 517 505 446 12.1 %
Merger-related expense 96 404 1,587 598 609 -84.2 %
Other   3,725     3,635     3,339     3,204     3,531   5.5 %
Total noninterest expense $ 35,219   $ 36,548   $ 37,158   $ 35,048   $ 34,224   2.9 %
 
Quarter Ended
March 31,December 31,September 30,June 30,March 31,
RECONCILIATION OF NON-GAAP TO GAAP20122011201120112011
 
Pre-tax, Pre-provision Operating Earnings (non-GAAP) (12)
Net income (GAAP) $ 7,028 $ 4,829 $ 10,332 $ 4,918 $ 2,516 179.3 %
Provision for loan losses (1) 2,723 7,057 8,323 4,215 10,641 -74.4 %
Provision for income taxes   3,541     1,154     5,658     2,612     1,338   164.6 %
Pre-tax, pre-provision income 13,292 13,040 24,313 11,745 14,495 -8.3 %
Gains on acquisitions -- -- (11,001 ) -- (5,528 )
Other-than-temporary impairment (OTTI) -- -- -- -- --
Merger-related expense 96 404 1,587 598 609 -84.2 %
Termination of group insurance -- -- -- -- --
FHLB advances prepayment penalty   --     --     --     --     --  
Pre-tax, pre-provision operating earnings (non-GAAP) $ 13,388   $ 13,444   $ 14,899   $ 12,343   $ 9,576   39.8 %
 
Return on Average Tangible Equity (10)
Return on average tangible equity (non-GAAP) 9.57 % 6.76 % 13.83 % 7.16 % 4.15 %
Effect to adjust for tangible assets   -2.20 %   -1.76 %   -3.07 %   -1.81 %   -1.21 %
Return on average equity (GAAP)   7.37 %   5.00 %   10.76 %   5.35 %   2.94 %
 
Tangible Book Value Per Common Share (10)
Tangible book value per common share (non-GAAP) $ 22.24 $ 21.89 $ 21.91 $ 21.18 $ 20.82
Effect to adjust for tangible assets   5.26     5.30     5.35     5.35     5.40  
Book value per common share (GAAP) $ 27.51   $ 27.19   $ 27.26   $ 26.53   $ 26.22  
 
Tangible Equity-to-Tangible Assets (10)
Tangible equity-to-tangible assets (non-GAAP) 7.87 % 8.04 % 7.95 % 7.87 % 7.48 %
Effect to adjust for tangible assets   1.68 %   1.76 %   1.75 %   1.79 %   1.76 %
Equity-to-assets (GAAP)   9.55 %   9.80 %   9.70 %   9.66 %   9.24 %
 
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)
 
Notes:
(1) Loan data excludes mortgage loans held for sale.
(2) The Company pays cash dividends on common shares out of earnings generated in the preceding quarter; therefore, the dividend payout ratio is calculated by dividing total dividends paid during the first quarter of 2012 by the total net income reported in the fourth quarter of 2011.
(3) Operating earnings is a non-GAAP measure and excludes the after-tax effect of gains on acquisitions, OTTI, and merger-related expense. Management believes that non-GAAP operating earnings provides additional useful information that allows readers to evaluate the ongoing performance of the company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP. Operating earnings (non-GAAP) excludes the following from net income (GAAP) on an after-tax basis: (a) pre-tax gains on acquisitions of $11.0 and $5.5 million for the quarters ended September 30, 2011 and March 31, 2011, respectively; and (b) pre-tax merger-related expense of $96,000, $404,000, $1.6 million, $598,000, and $609,000, for the quarters ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, and March 31, 2011, respectively.
(4) Repossessed assets includes OREO and other nonperforming assets.
(5) Calculated by dividing total non-acquired NPAs by total assets.

(6) The efficiency ratio (tax equivalent) would be 71.83% for March 31, 2012 if adjusted by subtracting $96,000 of merger-related expenses from non-interest expense. The efficiency ratio (tax equivalent) would be 72.17% for December 31, 2011 if adjusted by subtracting $404,000 of merger-related expenses from non-interest expense. The efficiency ratio (tax equivalent) would be 69.81% for September 30, 2011 if adjusted by subtracting the $11.0 million gain on acquisition from noninterest income and subtracting merger-related expense of $1.6 million from noninterest expense. The efficiency ratio (tax equivalent) would be 73.06% for June 30, 2011 if adjusted by subtracting merger-related expense of $598,000 from non-interest expense. The efficiency ratio (tax equivalent) would be 77.73% for March 31, 2011 if adjusted by subtracting the $5.5 million gain on acquisition from noninterest income and subtracting merger-related expense of $609,000 from noninterest expense.

(7) Acquired loans are not included in non-performing loans because they are part of performing pools of acquired loans.
(8) If an other-than-temporary impairment charge was recorded during the quarter, the amount would be reflected in the "securities gains (losses), net" line item.
(9) March 31, 2012 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed.
(10) The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible return on equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of Non-GAAP to GAAP" provide tables that reconcile non-GAAP measures to GAAP.
(11) Classified asset data excludes acquired assets.
(12) Pre-tax, pre-provision operating earnings is a non-GAAP measure and excludes the effect of the provision for loan losses, the provision for income taxes, the gains on acquisitions, OTTI, merger-related expense, and the termination fee for the former group insurance plan. Management believes that non-GAAP pre-tax, pre-provision operating earnings provides additional useful information that allows readers to evaluate the ongoing performance of the company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.

SCBT Financial Corporation
Media Contact:
Donna Pullen, 803-765-4558
or
Analyst Contact:
John C. Pollok, 803-765-4628

Source: SCBT Financial Corporation

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