Exhibit 99.1
SCBT Financial Corporation Reports Record
Net Income for the Second Quarter of 2008;
Strong Loan Growth and Solid Asset Quality Continues
HIGHLIGHTS:
—Earnings
· Net Income of $6.1 million — Up 10.4%
· Diluted earnings per share of $0.60
—Solid asset quality
· NPAs: 0.31% of total assets and 0.39% of loans and repossessed assets
· Net charge-offs — 0.17% annualized
—Strong loan growth
· 2nd Quarter loan growth $101.3 million — 18.9% annualized growth
COLUMBIA, S.C.—July 15, 2008—SCBT Financial Corporation (NASDAQ: SCBT), the holding company for South Carolina Bank and Trust, National Association, South Carolina Bank and Trust of the Piedmont, National Association, and The Scottish Bank, National Association, today released its unaudited results of operations and other financial information for the three-month period and six-month period ended June 30, 2008. The Company produced strong, record-high net income, strong loan growth and continued solid asset quality for the second quarter and on a year-to-date basis.
Please refer to the accompanying tables for detailed comparative data on results of operations and financial results.
The Company reported a record-high consolidated net income of $6.1 million for the three months ended June 30, 2008 compared to consolidated net income of $5.6 million for the second quarter of 2007, a $578,000 or 10.4% increase. The Company had diluted earnings per share of $0.60 for both the quarters ended June 30, 2008 and 2007, respectively, taking into account the higher number of shares outstanding in 2008 resulting from the Company’s acquisition of The Scottish Bank (TSB) in November 2007. For the six months ended June 30, 2008 and 2007, the Company reported net income of $12.1 million compared to $10.8 million, respectively, an increase of $1.3 million or 12.3%. This resulted in diluted earnings per share of $1.18 and $1.17 for the first six months of 2008 and 2007, respectively.
“With solid asset quality, strong loan growth, and a sound increase in net income, our second quarter results were excellent,” said Robert R. Hill, Jr., CEO. “We continue to work through very challenging banking and economic environments, and our team and company are performing at a very high level. The problems seen at some other banks are not issues for SCBT. Many of the troubled banks are one-product companies that focused on risky types of mortgage lending. We never participated in sub prime lending, and we are a well diversified bank. This company was founded during the depression, and safety and soundness has been a hallmark strength for over 74 years. While we have seen some small deterioration in credit quality, we are very pleased with our performance through the first half of 2008. Past due loans continue to be very low as do our non-performing assets and charge offs. Our growth during the quarter was enhanced by many long-term customer relationships of other financial institutions moving their banking business to SCBT. Our stability and consistent financial performance are helping our company take advantage of many opportunities in this market. In addition, we experienced a nice improvement in our efficiency ratio, which dropped below 63% as a result of a focus on expense management. We have a lot of work to do and many opportunities to enhance shareholder value, and will continue to work hard in our efforts to make 2008 our best year ever.”
During the second quarter of 2008, the Company’s average total assets (including the acquired assets from TSB) increased to $2.7 billion, a 21% increase over the second quarter of 2007. Excluding the assets from the acquisition of TSB, total assets grew by 12.2%. The growth in total assets was supported by growth in total deposits (including TSB’s deposits) of $280.8 million, an increase of 16.2% over the total in the second quarter of 2007. Excluding the deposits from the acquisition of TSB, deposits grew by $112.0 million or 6.5%. Average earning assets for the quarter increased by $432.9 million, or 20.8%, compared to the second quarter of 2007. Excluding the average earning assets of TSB for the quarter of $207.9 million, average earning assets grew 10.8%. The increase in average earning assets also includes a 9.0% increase in average investment securities to $247.8 million. Excluding the acquisition of TSB, there was a decrease in investment securities of 3.2%, or $7.3 million.
The Company’s annualized return on average assets (ROAA) for the second quarter decreased, due primarily to the increase in assets from acquiring TSB, to 0.91% compared to 1.00% for the second quarter of 2007, but increased from 0.90% for the first quarter of 2008. Total average shareholders’ equity at June 30, 2008 was $222.3 million, an increase of 32.0% from June 30, 2007. The increase was primarily related to the acquisition of TSB during the fourth quarter of 2007. Annualized return on average equity (ROAE) for the quarter was 11.13%, down from 13.27% for the second quarter of 2007, again due to the increased equity from the acquisition of TSB during the fourth quarter of 2007. Annualized return on average tangible equity (ROATE) for the second quarter decreased to 16.18% from 16.93% for the comparable period in the prior year, and increased from 16.13% in the first quarter of 2008.
Asset Quality
Net charge-offs increased to 0.17% from the extremely low level of 0.09% experienced in both the second quarter of 2007 and first quarter of 2008. During the second quarter, non-performing assets (NPAs) as a percentage of loans and repossessed assets increased to only 0.39% compared to 0.28% one year ago and 0.36% for the first quarter of 2008. NPAs to total assets for the quarter were 0.31% compared to 0.22% at the end of the second quarter 2007 and 0.28% at the end of the first quarter 2008.
At June 30, 2008, nonperforming loans totaled $7.4 million, representing 0.33% of period-end loans. Other real estate owned at the end of the second quarter was $1.1 million, an increase from $651,000 at the end of the first quarter 2008 and from $771,000 at the end of the second quarter 2007. The allowance for loan losses at June 30, 2008 was $28.8 million and represented 1.28% of total period-end loans. The current allowance for loan losses provides 3.89 times coverage of period-end nonperforming loans. In the second quarter, net charge-offs were $907,000, or an annualized 0.17% of average loans compared to $386,000, or 0.09% in the same period of 2007 and $480,000, or 0.09% in the linked quarter. The provision for loan losses was $2.3 million for the second quarter of 2008 compared to $800,000 for the comparable quarter one year ago, and $1.2 million in the first quarter of 2008.
Loans and Deposits
The Company increased total loans 24.4% since the second quarter of 2007, driven by continued growth in commercial real estate loans and home equity loans. Core loan growth, which excludes the loans acquired from TSB of $156.2 million, was 15.7% from June 30, 2007. Total loans outstanding were $2.2 billion at June 30, 2008 compared to $1.8 billion for the comparable period in 2007. The balance of mortgage loans held for sale decreased $749,000 from the first quarter of 2008 to $23.1 million at June 30, 2008, and was lower than the balance at June 30, 2007 of $30.1 million.
Deposits increased in most categories even subsequent to our decision to reduce deposit rates during the second quarter in response to the reduction in market rates administered by the Federal Reserve. Deposits increased by a total of $40.6 million, or 8.1% annualized, from the end of the first quarter of 2008, with the largest growth occurring in small and large denomination certificates of deposit. Compared to June 30, 2007, deposits increased by $273.6 million, with $168.8 million being attributable to the TSB acquisition. The Company reduced rates and increased the use of federal funds purchased and FHLB advances. Total deposits outstanding at the end of the second quarter of 2008 were $2.1 billion, an increase of $273.6 million, or 15.3%, compared to the second quarter of 2007. Excluding the deposits acquired from TSB, total deposits increased $104.8 million, or 5.9% from the second quarter of 2007. Compared to balances in the second quarter of 2007, savings account deposit levels increased $26.1 million, or 22.8%; smaller denomination certificates of deposit increased $36.7 million, or 8.3%; larger denomination certificates of deposit increased $78.3 million, or 21.2%; and noninterest-bearing deposits increased $13.2 million, or 4.6%.
Non-taxable equivalent net interest income (before provision for loan losses) was $23.6 million for the second quarter of 2008, up 19.2% from $19.8 million in the comparable period last year. Tax-equivalent net interest margin decreased 4 basis points from the second quarter of 2007 to 3.81%. Compared to the first quarter of 2008, tax-equivalent net interest margin increased 2 basis points from 3.79%. John C. Pollok, CFO, said, “The Federal Reserve reduced rates by 25 basis points during the quarter which put additional pressure on our net interest margin; however, we have continued to aggressively manage the pricing of our deposit funding sources and use readily available and economical funding sources to support our loan growth and manage our interest rate risk. With our ongoing management of the balance sheet, we were able to slightly increase the net interest margin from the compression experienced during the first quarter of 2008.”
The Company’s average yield on interest-earning assets decreased 92 basis points while the average rate on interest-bearing liabilities decreased 106 basis points from the second quarter of 2007. During the second quarter of 2008, the Company’s average total assets increased to $2.7 billion, a 21.1% increase over the second quarter of 2007. The increase reflected a $404.3 million increase in average total loans to $2.2 billion from the second quarter of 2007, the result of the strong loan growth during the first half of 2008 and the acquisition of TSB late in the fourth quarter of 2007. The increase in volume of loans at lower current market rates combined with variable rate loan resets resulted in the average yield on loans falling by 101 basis points compared to the second quarter of 2007. Average investment securities were $247.8 million at June 30, 2008, or 9.0% higher than the balance in 2007. The growth in average total assets was supported by growth in average total deposits of $280.8 million, an increase of 16.2% from the second quarter of 2007.
Noninterest Income and Expense
Noninterest income was $8.1 million in the second quarter of 2008, a 15% increase from $7.1 million in the comparable period in 2007. This increase included a $393,000, or 10.8%, increase in service charges on deposit accounts; $238,000, or 22.9%, increase in bankcard services income; a $30,000, or 4.6%, increase in trust and investment services income and a $51,000, or 8.4%, decrease in other noninterest income from the comparable period in 2007. Also, in spite of the continued overall slowdown within the real estate industry and the industry-wide tightening of credit relative to mortgage lending, mortgage banking income increased $149,000 or 13.7% due to the income recognized on written loan commitments. The Company also sold the shares of an equity security and recorded a pre-tax gain of $340,000 during the second quarter of 2008.
Noninterest expense was $19.7 million in the second quarter of 2008, up $2.1 million or 11.7%, from $17.6 million in the comparable period in 2007. The increase was driven by a $969,000, or 9.8%, increase in salaries and employee benefits expense primarily attributable to the additional employees from the TSB acquisition. Excluding the TSB salaries and benefits for the quarter, salaries and benefits were up 2.8% or $274,000 compared to the second quarter of 2007. The full quarter impact of the five TSB offices is reflected in each line item of noninterest expense. Advertising and marketing expense increased $250,000, or 29.7%, compared to the second quarter of 2007. Information services expense increased $26,000, or 2.3%. Net occupancy expense increased $257,000, or 20.8%. Furniture and equipment expense increased $185,000, or 13.3%, compared to the second quarter in 2007. Noninterest expense increased 2.7%, or $470,000, excluding TSB, compared to the second quarter of 2007. The Company’s efficiency ratio improved to 62.27% compared to 65.34% one year ago, and 65.66% in the first quarter of 2008.
During the first quarter of 2008, the Company reclassified mortgage loan commission costs paid to originators previously recorded as compensation expenses into mortgage banking income to net the two amounts. The result of these reclassifications for the first and second quarters of 2008 and prior periods was to decrease both noninterest revenue and noninterest expense. The reclassification resulted in an improved (decreased) efficiency ratio ranging from 0.50% to 0.87% for the previous four quarters of 2007, and had no impact on net income or equity in any of the reported periods.
SCBT Financial Corporation is a multi-bank holding company whose subsidiaries are South Carolina Bank and Trust, N.A., South Carolina Bank and Trust of the Piedmont, N.A and The Scottish Bank, N.A. Through these subsidiaries, SCBT Financial Corporation operates 50 financial centers in 16 South Carolina counties and Mecklenburg County of North Carolina. The Company has been serving banking needs within the Carolinas for 74 years. The Company offers a full range of retail and commercial banking services, mortgage lending services, trust and investment services, and consumer finance loans. SCBT Financial Corporation’s common stock is traded on the NASDAQ Global Select MarketSM under the symbol “SCBT.”
For additional information, please visit our website at www.SCBTonline.com.
-----
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 and Exchange Act of 1934, as amended. 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; and (10) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the integration of The Scottish Bank, including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters.
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
|
| Three Months Ended |
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| Six Months Ended |
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EARNINGS SUMMARY (non tax equivalent) |
| June 30, |
| % |
| June 30, |
| % |
| ||||||||
| 2008 |
| 2007 |
| Change |
| 2008 |
| 2007 |
| Change |
| |||||
Interest income |
| $ | 38,489 |
| $ | 36,728 |
| 4.8 | % | $ | 79,023 |
| $ | 72,128 |
| 9.6 | % |
Interest expense |
| 14,927 |
| 16,964 |
| -12.0 | % | 32,547 |
| 33,530 |
| -2.9 | % | ||||
Net interest income |
| 23,562 |
| 19,764 |
| 19.2 | % | 46,476 |
| 38,598 |
| 20.4 | % | ||||
Provision for loan losses (1) |
| 2,332 |
| 800 |
| 191.5 | % | 3,577 |
| 1,582 |
| 126.1 | % | ||||
Noninterest income |
| 8,127 |
| 7,070 |
| 15.0 | % | 15,632 |
| 13,683 |
| 14.2 | % | ||||
Noninterest expense |
| 19,695 |
| 17,630 |
| 11.7 | % | 39,824 |
| 34,681 |
| 14.8 | % | ||||
Earnings before income taxes |
| 9,662 |
| 8,404 |
| 15.0 | % | 18,707 |
| 16,018 |
| 16.8 | % | ||||
Provision for income taxes |
| 3,513 |
| 2,833 |
| 24.0 | % | 6,595 |
| 5,237 |
| 25.9 | % | ||||
Net earnings |
| $ | 6,149 |
| $ | 5,571 |
| 10.4 | % | $ | 12,112 |
| $ | 10,781 |
| 12.3 | % |
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Basic weighted average shares |
| 10,109,832 |
| 9,189,677 |
| 10.0 | % | 10,105,233 |
| 9,183,613 |
| 10.0 | % | ||||
Diluted weighted average shares |
| 10,252,503 |
| 9,219,642 |
| 11.2 | % | 10,238,642 |
| 9,213,967 |
| 11.1 | % | ||||
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Earnings per share - Basic |
| $ | 0.61 |
| $ | 0.61 |
| 0.0 | % | $ | 1.20 |
| $ | 1.17 |
| 2.6 | % |
Earnings per share - Diluted |
| $ | 0.60 |
| $ | 0.60 |
| 0.0 | % | $ | 1.18 |
| $ | 1.17 |
| 0.9 | % |
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Cash dividends declared per common share |
| $ | 0.17 |
| $ | 0.17 |
| 0.0 | % | $ | 0.34 |
| $ | 0.34 |
| 0.0 | % |
Dividend payout ratio |
| 29.08 | % | 29.98 | % | -3.0 | % | 31.21 | % | 30.58 | % | 2.1 | % | ||||
|
| AVERAGE for Quarter Ended |
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| June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
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BALANCE SHEET HIGHLIGHTS |
| 2008 |
| 2008 |
| 2007 |
| 2007 |
| 2007 |
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| |||||
Mortgage loans held for sale |
| $ | 23,126 |
| $ | 23,875 |
| $ | 13,799 |
| $ | 20,024 |
| $ | 30,124 |
|
|
|
Total loans (1) |
| 2,188,036 |
| 2,121,814 |
| 1,930,938 |
| 1,810,332 |
| 1,783,715 |
|
|
| |||||
Total investment securities |
| 247,759 |
| 258,510 |
| 246,931 |
| 232,797 |
| 227,243 |
|
|
| |||||
Intangible assets |
| 65,779 |
| 65,536 |
| 45,501 |
| 35,415 |
| 35,539 |
|
|
| |||||
Earning assets |
| 2,514,456 |
| 2,457,341 |
| 2,212,948 |
| 2,107,966 |
| 2,081,523 |
|
|
| |||||
Total assets |
| 2,710,273 |
| 2,655,897 |
| 2,379,592 |
| 2,265,340 |
| 2,237,433 |
|
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| |||||
Noninterest bearing deposits |
| 313,860 |
| 304,537 |
| 305,467 |
| 289,892 |
| 277,500 |
|
|
| |||||
Interest bearing deposits |
| 1,696,778 |
| 1,650,044 |
| 1,529,957 |
| 1,501,711 |
| 1,452,388 |
|
|
| |||||
Total deposits |
| 2,010,638 |
| 1,954,581 |
| 1,835,424 |
| 1,791,603 |
| 1,729,888 |
|
|
| |||||
Fed funds purchased & repo |
| 289,382 |
| 310,269 |
| 240,897 |
| 188,846 |
| 197,708 |
|
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| |||||
Other borrowings |
| 172,245 |
| 158,315 |
| 96,610 |
| 92,353 |
| 122,587 |
|
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| |||||
Shareholders’ equity |
| 222,274 |
| 217,780 |
| 189,506 |
| 172,421 |
| 168,376 |
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|
| AVERAGE for Six Months Ended |
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| June 30, |
| June 30, |
| % |
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| ||
BALANCE SHEET HIGHLIGHTS |
| 2008 |
| 2007 |
| Change |
|
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| ||
Mortgage loans held for sale |
| $ | 23,500 |
| $ | 26,663 |
| -11.9 | % |
|
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|
|
Total loans (1) |
| 2,154,925 |
| 1,774,970 |
| 21.4 | % |
|
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|
| ||
Total investment securities |
| 253,035 |
| 220,722 |
| 14.6 | % |
|
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| ||
Intangible assets |
| 65,657 |
| 35,613 |
| 84.4 | % |
|
|
|
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| ||
Earning assets |
| 2,485,799 |
| 2,066,318 |
| 20.3 | % |
|
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| ||
Total assets |
| 2,683,085 |
| 2,221,529 |
| 20.8 | % |
|
|
|
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| ||
Noninterest bearing deposits |
| 309,199 |
| 271,638 |
| 13.8 | % |
|
|
|
|
|
| ||
Interest bearing deposits |
| 1,673,410 |
| 1,438,622 |
| 16.3 | % |
|
|
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|
| ||
Total deposits |
| 1,982,609 |
| 1,710,260 |
| 15.9 | % |
|
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|
| ||
Fed funds purchased & repo |
| 299,826 |
| 202,055 |
| 48.4 | % |
|
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|
| ||
Other borrowings |
| 165,280 |
| 124,901 |
| 32.3 | % |
|
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| ||
Shareholders’ equity |
| 220,027 |
| 166,273 |
| 32.3 | % |
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| ENDING Balance |
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|
| June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
|
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| |||||
BALANCE SHEET HIGHLIGHTS |
| 2008 |
| 2008 |
| 2007 |
| 2007 |
| 2007 |
|
|
| |||||
Mortgage loans held for sale |
| $ | 19,015 |
| $ | 28,060 |
| $ | 17,351 |
| $ | 13,921 |
| $ | 28,092 |
|
|
|
Total loans (1) |
| 2,246,353 |
| 2,144,940 |
| 2,083,047 |
| 1,842,226 |
| 1,806,000 |
|
|
| |||||
Total investment securities |
| 256,391 |
| 249,848 |
| 258,509 |
| 242,890 |
| 234,842 |
|
|
| |||||
Intangible assets |
| 66,507 |
| 65,486 |
| 65,618 |
| 35,372 |
| 35,497 |
|
|
| |||||
Allowance for loan losses (1) |
| (28,760 | ) | (27,335 | ) | (26,570 | ) | (23,822 | ) | (23,369 | ) |
|
| |||||
Premises and equipment |
| 57,698 |
| 55,966 |
| 55,454 |
| 52,504 |
| 51,182 |
|
|
| |||||
Total assets |
| 2,774,387 |
| 2,678,248 |
| 2,597,183 |
| 2,267,243 |
| 2,274,951 |
|
|
| |||||
Noninterest bearing deposits |
| 322,209 |
| 315,621 |
| 315,791 |
| 293,388 |
| 285,155 |
|
|
| |||||
Interest bearing deposits |
| 1,734,637 |
| 1,700,608 |
| 1,612,098 |
| 1,520,454 |
| 1,498,114 |
|
|
| |||||
Total deposits |
| 2,056,846 |
| 2,016,229 |
| 1,927,889 |
| 1,813,842 |
| 1,783,269 |
|
|
| |||||
Fed funds purchased & repo |
| 322,682 |
| 252,178 |
| 296,186 |
| 172,496 |
| 200,989 |
|
|
| |||||
Other borrowings |
| 160,249 |
| 173,340 |
| 143,860 |
| 88,865 |
| 100,882 |
|
|
| |||||
Total liabilities |
| 2,552,924 |
| 2,458,218 |
| 2,382,118 |
| 2,091,771 |
| 2,105,115 |
|
|
| |||||
Shareholders’ equity |
| 221,463 |
| 220,030 |
| 215,065 |
| 175,472 |
| 169,836 |
|
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| |||||
Actual # shares outstanding |
| 10,203,497 |
| 10,185,915 |
| 10,160,432 |
| 9,201,820 |
| 9,195,057 |
|
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| |||||
NONPERFORMING ASSETS (ENDING balance) |
| June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
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| |||||
| 2008 |
| 2008 |
| 2007 |
| 2007 |
| 2007 |
|
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| ||||||
Nonaccrual loans |
| $ | 6,897 |
| $ | 5,215 |
| $ | 5,353 |
| $ | 4,008 |
| $ | 3,315 |
|
|
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Other real estate owned |
| 1,140 |
| 651 |
| 490 |
| 443 |
| 771 |
|
|
| |||||
Accruing loans past due 90 days or more |
| 497 |
| 1,692 |
| 985 |
| 807 |
| 995 |
|
|
| |||||
Other nonperforming assets |
| 181 |
| 63 |
| 82 |
| 237 |
| — |
|
|
| |||||
Total nonperforming assets |
| $ | 8,715 |
| $ | 7,621 |
| $ | 6,910 |
| $ | 5,495 |
| $ | 5,081 |
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Total nonperforming assets as a percentage of total loans and OREO (1) |
| 0.39 | % | 0.36 | % | 0.33 | % | 0.30 | % | 0.28 | % |
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Total nonperforming assets as a percentage of Total Assets |
| 0.31 | % | 0.28 | % | 0.27 | % | 0.24 | % | 0.22 | % |
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NPLs as a percentage of period end loans |
| 0.33 | % | 0.32 | % | 0.30 | % | 0.26 | % | 0.24 | % |
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SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
|
| Quarter Ended |
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| |||||||||||||
|
| June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
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| |||||
ALLOWANCE FOR LOAN LOSSES (1) |
| 2008 |
| 2008 |
| 2007 |
| 2007 |
| 2007 |
|
|
| |||||
Balance at beginning of period |
| $ | 27,335 |
| $ | 26,570 |
| $ | 23,822 |
| $ | 23,369 |
| $ | 22,955 |
|
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|
Allowance from acquisition |
| — |
| — |
| 1,835 |
| — |
| — |
|
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| |||||
Loans charged off |
| (913 | ) | (472 | ) | (623 | ) | (604 | ) | (447 | ) |
|
| |||||
Overdrafts charged off |
| (240 | ) | (259 | ) | (377 | ) | (308 | ) | (237 | ) |
|
| |||||
Loan recoveries |
| 176 |
| 113 |
| 181 |
| 116 |
| 219 |
|
|
| |||||
Overdraft recoveries |
| 70 |
| 138 |
| 91 |
| 88 |
| 79 |
|
|
| |||||
Net (charge-offs) recoveries |
| (907 | ) | (480 | ) | (728 | ) | (708 | ) | (386 | ) |
|
| |||||
Provision for loan losses |
| 2,332 |
| 1,245 |
| 1,641 |
| 1,161 |
| 800 |
|
|
| |||||
Balance at end of period |
| $ | 28,760 |
| $ | 27,335 |
| $ | 26,570 |
| $ | 23,822 |
| $ | 23,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Allowance for loan losses as a percentage of total loans (1) |
| 1.28 | % | 1.27 | % | 1.28 | % | 1.29 | % | 1.29 | % |
|
| |||||
Allowance for loan losses as a percentage of nonperforming loans |
| 388.96 | % | 395.75 | % | 419.22 | % | 494.75 | % | 542.20 | % |
|
| |||||
Net charge-offs as a percentage of average loans (annualized) (1) |
| 0.17 | % | 0.09 | % | 0.15 | % | 0.16 | % | 0.09 | % |
|
| |||||
Provision for loan losses as a percentage of average total loans (annualized) (1) |
| 0.43 | % | 0.24 | % | 0.34 | % | 0.26 | % | 0.18 | % |
|
| |||||
LOAN PORTFOLIO (ENDING balance) (1) |
| June 30, |
| % of Total |
| December 31, |
| % of Total |
| June 30, |
| % of Total |
| |||
Commercial |
| $ | 222,218 |
| 9.9 | % | $ | 245,069 |
| 11.8 | % | $ | 204,881 |
| 11.3 | % |
Consumer |
| 105,878 |
| 4.7 | % | 117,650 |
| 5.7 | % | 127,924 |
| 7.1 | % | |||
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Commercial non owner-occupied |
| 283,490 |
| 12.6 | % | 214,531 |
| 10.3 | % | 210,408 |
| 11.7 | % | |||
Commercial construction |
| 77,714 |
| 3.5 | % | 132,818 |
| 6.4 | % | 75,998 |
| 4.2 | % | |||
Land, land development & investment |
| 322,729 |
| 14.3 | % | 248,875 |
| 12.0 | % | 215,650 |
| 11.9 | % | |||
Loans to builder/developers |
| 83,295 |
| 3.7 | % | 67,270 |
| 3.2 | % | 68,798 |
| 3.8 | % | |||
Other |
| 151,553 |
| 6.8 | % | 129,015 |
| 6.2 | % | 119,167 |
| 6.6 | % | |||
Total commercial real estate |
| 918,781 |
| 40.9 | % | 792,509 |
| 38.1 | % | 690,021 |
| 38.2 | % | |||
Commercial owner-occupied |
| 305,976 |
| 13.6 | % | 282,914 |
| 13.6 | % | 185,000 |
| 10.2 | % | |||
Consumer real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Residential mortgage |
| 266,096 |
| 11.9 | % | 256,609 |
| 12.3 | % | 232,044 |
| 12.9 | % | |||
Construction and development |
| 187,390 |
| 8.3 | % | 202,413 |
| 9.7 | % | 189,277 |
| 10.5 | % | |||
Total consumer real estate |
| 453,486 |
| 20.2 | % | 459,022 |
| 22.0 | % | 421,321 |
| 23.3 | % | |||
Home equity loans |
| 199,191 |
| 8.9 | % | 164,104 |
| 7.9 | % | 138,673 |
| 7.7 | % | |||
Overdrafts |
| 2,640 |
| 0.1 | % | 2,590 |
| 0.1 | % | 2,202 |
| 0.1 | % | |||
Other loans |
| 38,183 |
| 1.7 | % | 19,189 |
| 0.9 | % | 35,978 |
| 2.0 | % | |||
Total loans (net of unearned |
| $ | 2,246,353 |
| 100.0 | % | $ | 2,083,047 |
| 100.0 | % | $ | 1,806,000 |
| 100.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Mortgage loans held for sale |
| $ | 19,015 |
|
|
| $ | 17,351 |
|
|
| $ | 28,092 |
|
|
|
|
| Quarter Ended |
|
|
| |||||||||||||
|
| June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
|
|
| |||||
SELECTED RATIOS |
| 2008 |
| 2008 |
| 2007 |
| 2007 |
| 2007 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average assets (annualized) |
| 0.91 | % | 0.90 | % | 0.86 | % | 1.00 | % | 1.00 | % |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average equity (annualized) |
| 11.13 | % | 11.01 | % | 10.76 | % | 13.13 | % | 13.27 | % |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average tangible equity (annualized) |
| 16.18 | % | 16.13 | % | 14.53 | % | 16.70 | % | 16.93 | % |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest margin (tax equivalent) |
| 3.81 | % | 3.79 | % | 3.91 | % | 3.89 | % | 3.85 | % |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Efficiency ratio (tax equivalent) |
| 62.27 | % | 65.66 | % | 65.42 | % | 64.16 | % | 65.34 | % |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
End of period book value per common share |
| $ | 21.70 |
| $ | 21.60 |
| $ | 21.17 |
| $ | 19.07 |
| $ | 18.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
End of period tangible book value per common share |
| $ | 15.19 |
| $ | 15.17 |
| $ | 14.71 |
| $ | 15.23 |
| $ | 14.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
End of period # shares |
| 10,203,497 |
| 10,185,915 |
| 10,160,432 |
| 9,201,820 |
| 9,195,057 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
End of period Equity-to-Assets |
| 7.98 | % | 8.22 | % | 8.28 | % | 7.74 | % | 7.47 | % |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
End of period Tangible Equity-to-Tangible Assets |
| 5.72 | % | 5.91 | % | 5.90 | % | 6.28 | % | 6.00 | % |
|
| |||||
|
| Six Months Ended |
|
|
|
|
|
|
|
|
| ||
|
| June 30, |
| June 30, |
|
|
|
|
|
|
|
|
|
SELECTED RATIOS |
| 2008 |
| 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
| 0.91 | % | 0.98 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (annualized) |
| 11.07 | % | 13.08 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity (annualized) |
| 16.15 | % | 17.03 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (tax equivalent) |
| 3.80 | % | 3.81 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (tax equivalent) |
| 63.94 | % | 67.69 | % |
|
|
|
|
|
|
|
|
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)
|
| Three Months Ended |
| ||||||||||||||
|
| June 30, 2008 |
| June 30, 2007 |
| ||||||||||||
|
| 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 time deposits |
| $ | 55,535 |
| $ | 284 |
| 2.06 | % | 40,441 |
| $ | 532 |
| 5.28 | % | |
Investment securities (taxable) |
| 209,698 |
| 2,696 |
| 5.17 | % | 201,735 |
| 2,519 |
| 5.01 | % | ||||
Investment securities (tax-exempt) |
| 38,061 |
| 493 |
| 5.21 | % | 25,508 |
| 314 |
| 4.94 | % | ||||
Mortgage loans held for sale |
| 23,126 |
| 279 |
| 4.85 | % | 30,124 |
| 434 |
| 5.78 | % | ||||
Loans (1) |
| 2,188,036 |
| 34,737 |
| 6.39 | % | 1,783,715 |
| 32,929 |
| 7.40 | % | ||||
Total Interest-earning assets |
| 2,514,456 |
| 38,489 |
| 6.16 | % | 2,081,523 |
| 36,728 |
| 7.08 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash and due from banks |
| 50,902 |
|
|
|
|
| 48,533 |
|
|
|
|
| ||||
Other assets |
| 172,658 |
|
|
|
|
| 130,353 |
|
|
|
|
| ||||
Allowance for loan losses |
| (27,743 | ) |
|
|
|
| (22,976 | ) |
|
|
|
| ||||
Total noninterest-earning assets |
| 195,817 |
|
|
|
|
| 155,910 |
|
|
|
|
| ||||
Total Assets |
| $ | 2,710,273 |
|
|
|
|
| $ | 2,237,433 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Transaction and money market accounts |
| $ | 570,271 |
| $ | 1,397 |
| 0.99 | % | $ | 566,017 |
| $ | 3,034 |
| 2.15 | % |
Savings deposits |
| 146,711 |
| 401 |
| 1.10 | % | 104,552 |
| 474 |
| 1.82 | % | ||||
Certificates and other time deposits |
| 979,796 |
| 10,052 |
| 4.13 | % | 781,819 |
| 9,487 |
| 4.87 | % | ||||
Federal funds purchased and repo. |
| 289,382 |
| 1,350 |
| 1.88 | % | 197,708 |
| 2,240 |
| 4.54 | % | ||||
Other borrowings |
| 172,245 |
| 1,727 |
| 4.03 | % | 122,587 |
| 1,729 |
| 5.66 | % | ||||
Total interest-bearing liabilities |
| 2,158,405 |
| 14,927 |
| 2.78 | % | 1,772,683 |
| 16,964 |
| 3.84 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 313,860 |
|
|
|
|
| 277,500 |
|
|
|
|
| ||||
Other liabilities |
| 15,734 |
|
|
|
|
| 18,874 |
|
|
|
|
| ||||
Total noninterest-bearing liabilities (“Non-IBL”) |
| 329,594 |
|
|
|
|
| 296,374 |
|
|
|
|
| ||||
Shareholders’ equity |
| 222,274 |
|
|
|
|
| 168,376 |
|
|
|
|
| ||||
Total Non-IBL and shareholders’ equity |
| 551,868 |
|
|
|
|
| 464,750 |
|
|
|
|
| ||||
Total liabilities and shareholders’ equity |
| $ | 2,710,273 |
|
|
|
|
| $ | 2,237,433 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income and margin (NON-TAX EQUIV.) |
|
|
| $ | 23,562 |
| 3.77 | % |
|
| $ | 19,764 |
| 3.81 | % | ||
Net interest margin (TAX EQUIVALENT) |
|
|
|
|
| 3.81 | % |
|
|
|
| 3.85 | % | ||||
|
| Six Months Ended |
| ||||||||||||||
|
| June 30, 2008 |
| June 30, 2007 |
| ||||||||||||
|
| 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 time deposits |
| $ | 54,339 |
| $ | 705 |
| 2.61 | % | $ | 43,963 |
| $ | 1,151 |
| 5.28 | % |
Investment securities (taxable) |
| 214,682 |
| 5,596 |
| 5.24 | % | 194,487 |
| 4,836 |
| 5.01 | % | ||||
Investment securities (tax-exempt) |
| 38,353 |
| 921 |
| 4.83 | % | 26,235 |
| 643 |
| 4.94 | % | ||||
Mortgage loans held for sale |
| 23,500 |
| 679 |
| 5.81 | % | 26,663 |
| 773 |
| 5.85 | % | ||||
Loans (1) |
| 2,154,925 |
| 71,122 |
| 6.64 | % | 1,774,970 |
| 64,725 |
| 7.35 | % | ||||
Total Interest-earning assets |
| 2,485,799 |
| 79,023 |
| 6.39 | % | 2,066,318 |
| 72,128 |
| 7.04 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash and due from banks |
| 52,868 |
|
|
|
|
| 48,266 |
|
|
|
|
| ||||
Other assets |
| 171,766 |
|
|
|
|
| 129,790 |
|
|
|
|
| ||||
Allowance for loan losses |
| (27,348 | ) |
|
|
|
| (22,845 | ) |
|
|
|
| ||||
Total noninterest-earning assets |
| 197,286 |
|
|
|
|
| 155,211 |
|
|
|
|
| ||||
Total Assets |
| $ | 2,683,085 |
|
|
|
|
| $ | 2,221,529 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Transaction and money market accounts |
| $ | 573,012 |
| $ | 3,505 |
| 1.23 | % | $ | 566,897 |
| $ | 6,044 |
| 2.15 | % |
Savings deposits |
| 141,846 |
| 965 |
| 1.37 | % | 92,698 |
| 665 |
| 1.45 | % | ||||
Certificates and other time deposits |
| 958,552 |
| 20,826 |
| 4.37 | % | 779,027 |
| 18,778 |
| 4.86 | % | ||||
Federal funds purchased and repo. |
| 299,826 |
| 3,677 |
| 2.47 | % | 202,055 |
| 4,545 |
| 4.54 | % | ||||
Other borrowings |
| 165,280 |
| 3,574 |
| 4.35 | % | 124,901 |
| 3,498 |
| 5.65 | % | ||||
Total interest-bearing liabilities |
| 2,138,516 |
| 32,547 |
| 3.06 | % | 1,765,578 |
| 33,530 |
| 3.83 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 309,199 |
|
|
|
|
| 271,638 |
|
|
|
|
| ||||
Other liabilities |
| 15,343 |
|
|
|
|
| 18,040 |
|
|
|
|
| ||||
Total noninterest-bearing liabilities (“Non-IBL”) |
| 324,542 |
|
|
|
|
| 289,678 |
|
|
|
|
| ||||
Shareholders’ equity |
| 220,027 |
|
|
|
|
| 166,273 |
|
|
|
|
| ||||
Total Non-IBL and shareholders’ equity |
| 544,569 |
|
|
|
|
| 455,951 |
|
|
|
|
| ||||
Total liabilities and shareholders’ equity |
| $ | 2,683,085 |
|
|
|
|
| $ | 2,221,529 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income and margin (NON-TAX EQUIV.) |
|
|
| $ | 46,476 |
| 3.76 | % |
|
| $ | 38,598 |
| 3.77 | % | ||
Net interest margin (TAX EQUIVALENT) |
|
|
|
|
| 3.80 | % |
|
|
|
| 3.81 | % | ||||
SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)
|
| Three Months Ended |
|
|
| Six Months Ended |
|
|
| ||||||||
NONINTEREST INCOME & EXPENSE |
| June 30, |
| % |
| June 30, |
| % |
| ||||||||
| 2008 |
| 2007 |
| Change |
| 2008 |
| 2007 |
| Change |
| |||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Service charges on deposit accounts |
| $ | 4,032 |
| $ | 3,639 |
| 10.8 | % | $ | 7,837 |
| $ | 7,043 |
| 11.3 | % |
Mortgage banking income |
| 1,240 |
| 1,091 |
| 13.7 | % | 2,270 |
| 2,102 |
| 8.0 | % | ||||
Bankcard services income |
| 1,276 |
| 1,038 |
| 22.9 | % | 2,432 |
| 2,015 |
| 20.7 | % | ||||
Trust and investment services income |
| 681 |
| 651 |
| 4.6 | % | 1,377 |
| 1,274 |
| 8.1 | % | ||||
Securities gains |
| 340 |
| 42 |
| 709.5 | % | 340 |
| 42 |
| 709.5 | % | ||||
Other |
| 558 |
| 609 |
| -8.4 | % | 1,376 |
| 1,207 |
| 14.0 | % | ||||
Total noninterest income |
| $ | 8,127 |
| $ | 7,070 |
| 15.0 | % | $ | 15,632 |
| $ | 13,683 |
| 14.2 | % |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
| $ | 10,863 |
| $ | 9,894 |
| 9.8 | % | $ | 22,084 |
| $ | 19,296 |
| 14.4 | % |
Furniture and equipment expense |
| 1,573 |
| 1,388 |
| 13.3 | % | 3,090 |
| 2,768 |
| 11.6 | % | ||||
Net occupancy expense |
| 1,494 |
| 1,237 |
| 20.8 | % | 2,992 |
| 2,338 |
| 28.0 | % | ||||
Information services expense |
| 1,141 |
| 1,115 |
| 2.3 | % | 2,320 |
| 2,113 |
| 9.8 | % | ||||
Advertising and marketing |
| 1,092 |
| 842 |
| 29.7 | % | 2,011 |
| 1,448 |
| 38.9 | % | ||||
Business development and staff related |
| 493 |
| 528 |
| -6.6 | % | 1,113 |
| 1,114 |
| -0.1 | % | ||||
Professional fees |
| 507 |
| 525 |
| -3.4 | % | 1,041 |
| 1,009 |
| 3.2 | % | ||||
Amortization of intangibles |
| 145 |
| 125 |
| 16.0 | % | 289 |
| 252 |
| 14.7 | % | ||||
Other |
| 2,387 |
| 1,976 |
| 20.8 | % | 4,884 |
| 4,343 |
| 12.5 | % | ||||
Total noninterest expense |
| $ | 19,695 |
| $ | 17,630 |
| 11.7 | % | $ | 39,824 |
| $ | 34,681 |
| 14.8 | % |
Notes:
(1) Loan data excludes mortgage loans held for sale.
