SouthState (SSB) 8-K Declares Quarterly Cash Dividend

Exhibit 99.1

 NEWS

For Immediate Release	Media Contact:    Donna Pullen (803) 765-4558
	Analyst Contact: John C. Pollok (803) 765-4628

SCBT Reports Second Quarter 2012 Financial Results;

Declares Quarterly Cash Dividend

COLUMBIA, S.C.—July 27, 2012—SCBT Financial Corporation (NASDAQ: SCBT), the holding company for SCBT, today released its unaudited results of operations and other financial information for the three-month and six-month periods ended June 30, 2012.  Highlights of the second quarter 2012 include the following:

·Net income of $8.0 million, or $0.55 diluted EPS in 2Q 2012 compared to $7.0 million, or $0.50 diluted EPS in 1Q 2012 and $4.9 million, or $0.35 diluted EPS in 2Q 2011;

·Operating earnings, which excludes merger and conversion related expense, of $9.4 million, or $0.63 diluted EPS in 2Q 2012 compared to $7.1 million, or $0.51 diluted EPS in 1Q 2012 and $5.3 million, or $0.38 diluted EPS in 2Q 2011;

·Return on average assets was 0.75% annualized in 2Q 2012 compared to 0.71% in 1Q 2012 and 0.50% in 2Q 2011; Operating return on average assets was 0.88% in 2Q 2012 compared to 0.72% in 1Q 2012 and 0.54% in 2Q 2011;

·Return on average equity was 7.77% annualized in 2Q 2012 compared to 7.37% in 1Q 2012 and 5.35% in 2Q 2011; Operating return on average equity was 9.05% annualized in 2Q 2012 compared to 7.44% in 1Q 2012 and 5.77% in 2Q 2011;

·Efficiency ratio improved to 68.3% in 2Q 2012 compared to 72.0% in 1Q 2012 and 74.3% in 2Q 2011; Operating efficiency ratio improved to 64.7% in 2Q 2012 compared to 71.8% in 1Q 2012 and 73.1% in 2Q 2011;

·Net charge-offs of non-acquired loans increased to 0.77% annualized in 2Q 2012, compared to 0.66% annualized in 1Q 2012 and 0.71% annualized in 2Q 2011;

·Non-performing Assets (NPAs):  1.90% of total assets for 2Q 2012 compared to 2.26% for 1Q 2012 and 2.44% for 2Q 2011; 3.32% of loans and repossessed assets, excluding acquired assets, for 2Q 2012 compared to 3.72% for 1Q 2012 and 3.86% for 2Q 2011;

·Organic loan growth was $43.9 million or 7.2% annualized during 2Q 2012

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 August 24, 2012 to shareholders of record as of August 17, 2012.

Second 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 $8.0 million, or $0.55 per diluted share for the three months ended June 30, 2012.  Driving this increase was an increase in net interest income, improved noninterest income, good control over noninterest expense, and partially offset by an increase in negative accretion on the indemnification asset.

“Our performance during the second quarter was exceptional and is the culmination of our growth and efficiency efforts over the last several years.  Our balance sheet strength allowed us to be opportunistic during the economic downturn, with regard to organic growth, FDIC-assisted transactions, and whole bank acquisitions,” said Robert R. Hill, Jr., president and CEO, SCBT Financial Corporation.  “We began to see some benefits during the first quarter, but this quarter’s performance really demonstrates the overall impact of that strategy.  Highlights of the quarter included meaningful asset quality improvements, successful integration of Peoples Bancorporation, solid legacy loan growth, fee income increases in every category, and a much improved efficiency ratio.  We still have a great opportunity to improve further, but are off to a strong 2012.”

Asset Quality

During the second quarter of 2012, SCBT saw improvement in many of the asset quality metrics. These improvements were evidenced by declines in the following non-acquired categories at June 30, 2012: classified assets were down $16.9 million to $160.6 million; nonperforming loans down by $12.4 million to $57.6 million, and nonperforming assets were down $8.3 million to $83.1 million from $91.4 million at the end of March.

At June 30, 2012, the allowance for non-acquired loan losses was $47.3 million or 1.91% of non-acquired period-end loans.  The current allowance for loan losses provides .82 times coverage of period-end non-acquired nonperforming loans.  Net charge-offs within the non-acquired portfolio were $4.7 million for the quarter or 0.77% annualized, up slightly from both the first quarter of 2012 of $4.1 million or 0.66% annualized and second quarter of 2011 of $4.2 million or 0.71% annualized.  OREO cost again declined in the second quarter by $600,000 from the first quarter of 2012.

Net Interest Income and Margin

Non-taxable equivalent net interest income was $42.5 million for the second quarter of 2012, a $3.5 million increase from first quarter primarily as a result of the Peoples Bancorporation acquisition and the related increase in interest earning assets, and the continued reduction in the cost of funds.  Tax-equivalent net interest margin decreased 1 basis point from the second quarter of 2011 and from the first quarter of 2012 to 4.69%.  The Company’s average yield on interest-

earning assets decreased 34 basis points while the average rate on interest-bearing liabilities decreased 35 basis points from the second quarter of 2011.  During the second quarter of 2012, the Company’s average total assets increased to almost $4.3 billion and average earning assets increased to $3.7 billion.  The growth in average total assets was supported by growth in average total deposits to $3.6 billion.

Noninterest Income and Expense

Noninterest income was $11.7 million in the second quarter of 2012.  The Company saw improvements in all categories of noninterest income over the comparable period of 2011 and from the first quarter of 2012.  Second quarter noninterest income included recoveries from acquired assets totaling $1.0 million.  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 acquired loans which had improved estimated cash flows.

Noninterest expense was $37.5 million in the second quarter of 2012 up from $35.2 million in the first quarter.  This increase from the first quarter of 2012 was driven primarily by $2.0 million in merger and conversion cost.  In addition, the acquisition of Peoples Bancorporation, Inc., added approximately $2.0 million of noninterest expense during the second quarter across all categories.  The efficiency ratio improved during the quarter from 72.0% in the first quarter to 68.3% in the second quarter of 2012.

Balance Sheet and Capital

In the second quarter of 2012, SCBT’s total assets totaled $4.4 billion with the completion of the Peoples acquisition.  The asset growth was driven by increases in investment securities, acquired loans, non-acquired loans, premises and equipment, bank owned life insurance, intangibles and deferred tax assets.  The asset growth was supported by $304.3 million in deposit growth; an increase of $168.4 million in core deposits and a $135.9 million increase in CDs.  The majority of this asset growth was the result of the Peoples acquisition.

Book value per share and tangible book value per share increased to $28.17 and $22.86 per share at June 30, 2012 by $0.66 and $0.62 per share from March 31, 2012 and by $1.64 and $1.68 per share from June 30, 2011.

The total risk-based capital ratio is estimated to decline by 63 basis points from the first quarter of 2012 to 15.19%, due primarily to the increase in risk-weighted assets from the Peoples acquisition and a change in risk-weighted mix relative to the increase in capital.  Tier 1 leverage ratio decreased slightly by 1 basis point for the quarter to 9.22%.  The Company’s capital positions remain “well-capitalized” by all measures at June 30, 2012.

“Our strong balance sheet continues to allow us to improve our operating performance, which is evidenced by operating net income, strong capital position and increasing tangible book value,” said John C. Pollok, COO and CFO.  “With our results, our operating EPS has now surpassed the third quarter of 2008, which was previously our highest operating EPS.  In addition, pre-tax, pre-

provision operating income grew to above $18.7 million for the quarter, an increase of $5.4 million over the first quarter of 2012.”

SCBT Financial Corporation will hold a conference call on July 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 92134176.  Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com.  A replay will be available beginning July 27th by 2:00 p.m. ET until 11:59 p.m. on August 4th.  To listen to the replay, dial 855-859-2056 or 404-537-3406.  The pass code is 92134176.

***************

SCBT Financial Corporation, Columbia, South Carolina is a registered bank holding company incorporated under the laws of South Carolina.  The Company consists of SCBT, the bank; NCBT, a division of the bank, and Community Bank & Trust, a division of the bank.  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 $4.4 billion, is the largest publicly traded bank holding company in South Carolina 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)

																Second
	Three Months Ended															Quarter		Six Months Ended						YTD
	June 30,			March 31,			December 31,			September 30,			June 30,			2012 - 2011		June 30,						2012 - 2011
	2012			2012			2011			2011			2011			% Change		2012			2011			% Change
EARNINGS SUMMARY (non tax equivalent)
Interest income	$	45,470		$	42,220		$	43,825		$	45,307		$	43,331		4.9	%	$	87,690		$	82,586		6.2	%
Interest expense	2,936			3,182			3,900			4,627			5,330			-44.9	%	6,118			11,739			-47.9	%
Net interest income	42,534			39,038			39,925			40,680			38,001			11.9	%	81,572			70,847			15.1	%
Provision for loan losses (1)	4,641			2,723			7,057			8,323			4,215			10.1	%	7,364			14,856			-50.4	%
Noninterest income	11,744			9,473			9,663			20,791			8,792			33.6	%	21,217			24,665			-14.0	%
Noninterest expense	37,509			35,219			36,548			37,158			35,048			7.0	%	72,728			69,272			5.0	%
Income before provision for income taxes	12,128			10,569			5,983			15,990			7,530			61.1	%	22,697			11,384			99.4	%
Provision for income taxes	4,097			3,541			1,154			5,658			2,612			56.9	%	7,638			3,950			93.4	%
Net income	$	8,031		$	7,028		$	4,829		$	10,332		$	4,918		63.3	%	$	15,059		$	7,434		102.6	%
Basic weighted-average common shares	14,650,914			13,882,801			13,845,444			13,818,012			13,805,428			6.1	%	14,260,257			13,500,009			5.6	%
Diluted weighted-average common shares	14,733,325			13,951,290			13,914,814			13,883,897			13,885,921			6.1	%	14,333,775			13,582,012			5.5	%
Earnings per share - Basic	$	0.55		$	0.51		$	0.35		$	0.75		$	0.36		52.8	%	$	1.06		$	0.55		92.7	%
Earnings per share - Diluted	0.55			0.50			0.35			0.74			0.35			57.1	%	1.05			0.54			94.4	%
Cash dividends declared per share	$	0.17		$	0.17		$	0.17		$	0.17		$	0.17		0.0	%	$	0.34		$	0.34		0.0	%
Dividend payout ratio (2)	36.48		%	49.48		%	23.07		%	48.39		%	94.45		%	-61.4	%	41.77		%	154.39		%	-72.9	%
Operating Earnings (non-GAAP) (3)
Net income (GAAP)	$	8,031		$	7,028		$	4,829		$	10,332		$	4,918		63.3	%	$	15,060		$	7,434		102.6	%
Gains on acquisitions, net of tax	—			—			—			(6,806		)	—					—			(3,610		)
Merger and conversion related expense, net of tax	1,323			64			327			1,102			390			239.3	%	1,387			788
Net operating earnings (loss) (non-GAAP)	$	9,354		$	7,092		$	5,156		$	4,628		$	5,308		76.2	%	$	16,447		$	4,612		256.6	%
Operating earnings (loss) per share - Basic	$	0.64		$	0.51		$	0.37		$	0.33		$	0.38		68.4	%	$	1.15		$	0.33		248.5	%
Operating earnings (loss) per share - Diluted	0.63			0.51			0.37			0.33			0.38			65.8	%	1.14			0.33			245.5	%

											Second
	AVERAGE for Quarter Ended										Quarter		AVERAGE for Six Months				YTD
	June 30,		March 31,		December 31,		September 30,		June 30,		2012 - 2011		June 30,		June 30,		2012 - 2011
	2012		2012		2011		2011		2011		% Change		2012		2011		% Change
BALANCE SHEET HIGHLIGHTS
Loans held for sale	$	29,604	$	34,073	$	52,743	$	21,331	$	13,385	121.2	%	$	31,838	$	16,312	95.2	%
Acquired loans, net of allowance for acquired loan losses	484,084		357,668		386,713		400,651		370,468		30.7	%	420,876		365,450		15.2	%
Non-acquired loans	2,456,069		2,456,080		2,467,363		2,444,185		2,366,905		3.8	%	2,456,075		2,338,901		5.0	%
Total loans (1)	2,940,153		2,813,748		2,854,076		2,844,836		2,737,373		7.4	%	2,876,951		2,704,351		6.4	%
FDIC receivable for loss share agreements	219,183		246,556		267,904		304,089		303,881		-27.9	%	232,870		270,202		-13.8	%
Total investment securities	468,334		324,473		317,940		304,642		236,798		97.8	%	396,403		242,527		63.4	%
Intangible assets	79,583		74,089		74,601		74,960		75,106		6.0	%	76,836		74,064		3.7	%
Earning assets	3,703,552		3,371,704		3,346,444		3,319,083		3,277,058		13.0	%	3,537,629		3,247,091		8.9	%
Total assets	4,295,911		3,957,918		3,947,773		3,935,427		3,936,572		9.1	%	4,126,914		3,866,509		6.7	%
Noninterest-bearing deposits	795,867		700,438		675,998		636,883		610,109		30.4	%	748,152		574,915		30.1	%
Interest-bearing deposits	2,808,884		2,570,595		2,614,304		2,641,606		2,658,638		5.7	%	2,689,740		2,635,103		2.1	%
Total deposits	3,604,751		3,271,033		3,290,302		3,278,489		3,268,747		10.3	%	3,437,892		3,210,018		7.1	%
Federal funds purchased and repurchase agreements	215,678		229,099		194,427		195,777		224,163		-3.8	%	222,389		225,342		-1.3	%
Other borrowings	46,203		46,480		46,774		47,272		46,379		-0.4	%	46,342		47,459		-2.4	%
Shareholders’ equity	415,952		383,377		382,909		380,933		369,019		12.7	%	399,664		358,111		11.6	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands, except per share data)

																Second
	ENDING Balance															Quarter
	June 30,			March 31,			December 31,			September 30,			June 30,			2012 - 2011
	2012			2012			2011			2011			2011			% Change
BALANCE SHEET HIGHLIGHTS
Loans held for sale	$	42,525		$	34,706		$	45,809		$	45,870		$	17,956		136.8	%
Acquired loans	560,058			369,144			402,201			435,793			379,341			47.6	%
Non-acquired loans	2,481,251			2,437,314			2,470,565			2,461,613			2,405,613			3.1	%
Total loans (1)	3,041,309			2,806,458			2,872,766			2,897,406			2,784,954			9.2	%
FDIC receivable for loss share agreements	200,569			231,331			262,651			274,658			299,200			-33.0	%
Total investment securities	511,138			357,448			324,056			321,047			249,483			104.9	%
Intangible assets	79,971			73,926			74,426			74,949			74,915			6.7	%
Allowance for acquired loan losses	(35,813		)	(34,355		)	(31,620		)	(29,870		)	(25,545		)	40.2	%
Allowance for non-acquired loan losses (1)	(47,269		)	(47,607		)	(49,367		)	(49,110		)	(48,180		)	-1.9	%
Premises and equipment	106,458			93,209			94,250			90,020			90,529			17.6	%
Total assets	4,373,269			4,046,343			3,896,557			3,935,518			3,839,935			13.9	%
Noninterest-bearing deposits	806,235			757,777			658,454			653,923			598,112			34.8	%
Interest-bearing deposits	2,854,737			2,598,860			2,596,018			2,633,729			2,607,716			9.5	%
Total deposits	3,660,972			3,356,637			3,254,472			3,287,652			3,205,828			14.2	%
Federal funds purchased and repurchase agreements	220,264			235,412			180,436			184,403			187,550			17.4	%
Other borrowings	46,105			46,397			46,683			46,955			46,275			-0.4	%
Total liabilities	3,948,363			3,659,836			3,514,777			3,553,796			3,468,830			13.8	%
Shareholders’ equity	424,906			386,507			381,780			381,722			371,105			14.5	%
Common shares issued and outstanding	15,085,991			14,052,177			14,039,422			14,004,372			13,987,686			7.9	%

																Second
																Quarter
	June 30,			March 31,			December 31,			September 30,			June 30,			2012 - 2011
	2012			2012			2011			2011			2011			% Change
NONPERFORMING ASSETS (ENDING BALANCE)
Non-acquired
Non-acquired nonaccrual loans	$	49,406		$	59,278		$	64,170		$	61,163		$	57,806		-14.5	%
Restructured loans	8,064			10,578			11,807			11,698			10,880			-25.9	%
Other real estate owned (“OREO”) not covered under FDIC loss share agreements	25,518			21,381			18,022			22,686			24,900			2.5	%
Accruing loans past due 90 days or more	137			130			926			495			94			45.7	%
Other nonperforming assets	—			24			24			24			50			-100.0	%
Total non-acquired nonperforming assets	83,125			91,391			94,949			96,066			93,730			-11.3	%
Acquired (7)
Acquired nonaccrual loans	—			—			—			—			—
OREO covered under FDIC loss share agreements	53,146			61,788			65,849			79,739			74,591			-28.8	%
OREO not covered under FDIC loss share agreements	5,745			—			—			—			—
Other nonperforming assets	73			215			251			347			408
Total acquired nonperforming assets	58,964			62,003			66,100			80,086			74,999			-21.4	%
Total nonperforming assets	$	142,089		$	153,394		$	161,049		$	176,152		$	168,729		-15.8	%
Excluding Acquired Assets
Total nonperforming assets as a percentage of total non-acquired loans and repossessed assets (1) (4)	3.32		%	3.72		%	3.82		%	3.87		%	3.86		%
Total nonperforming assets as a percentage of total assets (5)	1.90		%	2.26		%	2.44		%	2.44		%	2.44		%
NPLs as a percentage of period end non-acquired loans	2.32		%	2.87		%	3.11		%	2.98		%	2.86		%
Including Acquired Assets
Total nonperforming assets as a percentage of total loans and repossessed assets (1) (4)	4.55		%	5.31		%	5.45		%	5.91		%	5.87		%
Total nonperforming assets as a percentage of total assets	3.25		%	3.79		%	4.13		%	4.48		%	4.39		%
NPLs as a percentage of period end loans	1.89		%	2.49		%	2.68		%	2.55		%	2.48		%
OTHER ASSET QUALITY INFORMATION
Classified Assets (Ending Balance) (11)
Classified loans	$	135,099		$	156,118		$	166,383		$	157,569		$	163,856		-17.6	%
OREO and other nonperforming assets	25,518			21,405			18,046			22,710			24,950			2.3	%
Total classified assets	$	160,617		$	177,523		$	184,429		$	180,279		$	188,806		-14.9	%
Tier 1 capital and non-acquired allowance for loan losses	$	436,964		$	406,070		$	402,470		$	398,231		$	388,659		12.4	%
Classified assets as a percentage of Tier 1 capital and non-acquired allowance for loan losses	36.76		%	43.72		%	45.82		%	45.27		%	48.58		%
Non-acquired Loans 30-89 Day Past Due	$	10,464		$	7,290		$	9,235		$	8,371		$	11,451		-8.6	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands)

																Second
	Quarter Ended															Quarter		Six Months Ended						YTD
	June 30,			March 31,			December 31,			September 30,			June 30,			2012 - 2011		June 30,			June 30,			2012 - 2011
	2012			2012			2011			2011			2011			% Change		2012			2011			% Change
ALLOWANCE FOR LOAN LOSSES (1)
Non-acquired Loans:
Balance at beginning of period	$	47,607		$	49,367		$	49,110		$	48,180		$	48,164		-1.2	%	$	49,367		$	47,512		3.9	%
Loans charged off	(5,114		)	(5,344		)	(6,846		)	(7,426		)	(4,574		)	11.8	%	(10,458		)	(13,774		)	-24.1	%
Overdrafts charged off	(441		)	(354		)	(413		)	(432		)	(196		)	125.0	%	(795		)	(318		)	150.0	%
Loan recoveries	700			1,424			409			569			454			54.2	%	2,124			910			133.4	%
Overdraft recoveries	125			216			138			112			103			21.4	%	341			272			25.4	%
Net charge-offs	(4,730		)	(4,058		)	(6,712		)	(7,177		)	(4,213		)	12.3	%	(8,788		)	(12,910		)	-31.9	%
Provision for loan losses on non-acquired loans	4,392			2,298			6,969			8,107			4,229			3.9	%	6,690			13,578			-50.7	%
Balance at end of period, non-acquired loans	47,269			47,607			49,367			49,110			48,180			-1.9	%	47,269			48,180			-1.9	%
Acquired Loans:
Balance at beginning of period	34,355			31,620			29,870			25,545			25,833					31,620			—
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	1,457			2,735			1,750			4,325			(288		)			4,192			25,545
Benefit attributable to FDIC loss share agreements	(1,208		)	(2,310		)	(1,663		)	(4,109		)	274					(3,518		)	(24,268		)
Net provision for loan losses on acquired loans	249			425			87			216			(14		)			674			1,277
Provision for loan losses recorded through the FDIC loss share receivable	1,208			2,310			1,663			4,109			(274		)			3,518			24,268
Balance at end of period, acquired loans	35,812			34,355			31,620			29,870			25,545					35,812			25,545
Balance at end of period, total allowance for loan losses	$	83,081		$	81,962		$	80,987		$	78,980		$	73,725		12.7	%	$	83,081		$	73,725		12.7	%
Total provision for loan losses charged to operations	$	4,641		$	2,723		$	7,057		$	8,323		$	4,215				$	7,365		$	14,855
Allowance for non-acquired loan losses as a percentage of non-acquired loans (1)	1.91		%	1.95		%	2.00		%	2.00		%	2.00		%			1.91		%	2.00		%
Allowance for loan losses as a percentage of total loans (1)	2.73		%	2.92		%	2.82		%	2.73		%	2.65		%			2.73		%	2.65		%
Allowance for non-acquired loan losses as a percentage of non-acquired nonperforming loans	82.05		%	68.02		%	64.19		%	66.95		%	70.05		%			82.05		%	70.05		%
Net charge-offs on non-acquired loans as a percentage of average non-acquired loans (annualized) (1)	0.77		%	0.66		%	1.08		%	1.16		%	0.71		%			0.72		%	1.11		%
																Second
																Quarter
	June 30,			March 31,			December 31,			September 30,			June 30,			2012 - 2011
	2012			2012			2011			2011			2011			% Change
LOAN PORTFOLIO (ENDING balance) (1)
Acquired covered loans	$	332,874		$	363,050		$	394,495		$	427,161		$	369,658		51.5	%
Acquired non-covered loans	227,184			6,094			7,706			8,632			9,683			2246.2	%
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development	279,519			294,865			310,845			316,072			338,288			-17.4	%
Commercial non-owner occupied	284,147			284,044			299,698			304,616			306,698			-7.4	%
Total commercial non-owner occupied real estate	563,666			578,909			610,543			620,688			644,986			-12.6	%
Consumer real estate:
Consumer owner occupied	420,298			407,697			391,529			394,205			367,910			14.2	%
Home equity loans	257,061			258,054			264,986			264,588			263,667			-2.5	%
Total consumer real estate	677,359			665,751			656,515			658,793			631,577			7.2	%
Commercial owner occupied real estate	763,338			744,441			742,890			719,791			669,224			14.1	%
Commercial and industrial	228,010			216,083			220,454			216,573			215,901			5.6	%
Other income producing property	132,193			130,177			140,693			142,325			133,152			-0.7	%
Consumer non real estate	87,290			85,350			85,342			84,972			80,072			9.0	%
Other	29,395			16,603			14,128			18,471			30,701			-4.3	%
Total non-acquired loans	2,481,251			2,437,314			2,470,565			2,461,613			2,405,613			3.1	%
Total loans (net of unearned income) (1)	$	3,041,309		$	2,806,458		$	2,872,766		$	2,897,406		$	2,784,954		9.2	%
Loans held for sale	$	42,525		$	34,706		$	45,809		$	45,870		$	17,956		136.8	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands, except per share data)

	Quarter Ended																	Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,					June 30,			June 30,
	2012			2012			2011			2011			2011					2012			2011
SELECTED RATIOS
Return on average assets (annualized)	0.75		%	0.71		%	0.49		%	1.04		%	0.50		%			0.73		%	0.39		%
Operating return on average assets (annualized) (non-GAAP)	0.88		%	0.72		%	0.52		%	0.47		%	0.54		%			0.80		%	0.24		%
Return on average equity (annualized)	7.77		%	7.37		%	5.00		%	10.76		%	5.35		%			7.58		%	4.19		%
Operating return on average equity (annualized) (non-GAAP)	9.05		%	7.44		%	5.34		%	4.82		%	5.77		%			8.28		%	2.60		%
Return on average tangible equity (annualized) (non-GAAP) (10)	10.03		%	9.57		%	6.76		%	13.83		%	7.16		%			9.81		%	5.72		%
Net interest margin (tax equivalent)	4.69		%	4.70		%	4.78		%	4.95		%	4.70		%			4.70		%	4.43		%
Efficiency ratio (tax equivalent)	68.34		%	72.02		%	73.09		%	59.97		%	74.33		%			70.07		%	72.21		%
Operating efficiency ratio (tax equivalent) (6)	64.70		%	71.83		%	72.28		%	69.81		%	73.06		%			68.06		%	75.29		%
Book value per common share	$	28.17		$	27.51		$	27.19		$	27.26		$	26.53
Tangible book value per common share (non-GAAP) (10)	$	22.86		$	22.24		$	21.89		$	21.91		$	21.18
Common shares issued and outstanding	15,085,991			14,052,177			14,039,422			14,004,372			13,987,686
Equity-to-assets	9.72		%	9.55		%	9.80		%	9.70		%	9.66		%
Tangible equity-to-tangible assets (non-GAAP) (10)	8.03		%	7.87		%	8.04		%	7.95		%	7.87		%
Tier 1 leverage (9)	9.22		%	9.23		%	9.12		%	9.04		%	8.82		%
Tier 1 risk-based capital (9)	13.91		%	14.55		%	14.09		%	13.92		%	13.89		%
Total risk-based capital (9)	15.19		%	15.82		%	15.36		%	15.19		%	15.15		%
	Quarter Ended																	Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,					June 30,			June 30,
	2012			2012			2011			2011			2011					2012			2011
RECONCILIATION OF NON-GAAP TO GAAP
Pre-tax, Pre-provision Operating Earnings (12)
Net income (GAAP)	$	8,031		$	7,028		$	4,829		$	10,332		$	4,918		63.3	%	$	15,059		$	7,434		102.6	%
Provision for loan losses (1)	4,641			2,723			7,057			8,323			4,215			10.1	%	7,364			14,856			-50.4	%
Provision for income taxes	4,097			3,541			1,154			5,658			2,612			56.9	%	7,638			3,950			93.4	%
Pre-tax, pre-provision income	16,769			13,292			13,040			24,313			11,745			42.8	%	30,061			26,240			14.6	%
Gains on acquisitions	—			—			—			(11,001		)	—					—			(5,528		)
Merger and conversion related expense	1,998			96			404			1,587			598			234.1	%	2,094			1,207
Pre-tax, pre-provision operating earnings (non-GAAP)	$	18,767		$	13,388		$	13,444		$	14,899		$	12,343		52.0	%	$	32,155		$	21,919		46.7	%
Operating Return of Average Assets
Operating return on average assets (non-GAAP)	0.88		%	0.72		%	0.52		%	0.47		%	0.54		%			0.80		%	0.24		%
Effect to adjust for acquisition gains	0.00		%	0.00		%	0.00		%	0.69		%	0.00		%			0.00		%	0.19		%
Effect to adjust for merger and conversion related expenses	-0.13		%	-0.01		%	-0.03		%	-0.12		%	-0.04		%			-0.07		%	-0.04		%
Return on average assets (GAAP)	0.75		%	0.71		%	0.49		%	1.04		%	0.50		%			0.73		%	0.39		%
Operating Return of Average Equity
Operating return on average equity (non-GAAP)	9.05		%	7.44		%	5.34		%	4.82		%	5.77		%			8.28		%	2.60		%
Effect to adjust for acquisition gains	0.00		%	0.00		%	0.00		%	7.09		%	0.00		%			0.00		%	2.03		%
Effect to adjust for merger and conversion related expenses	-1.28		%	-0.07		%	-0.34		%	-1.15		%	-0.42		%			-0.70		%	-0.44		%
Return on average equity (GAAP)	7.77		%	7.37		%	5.00		%	10.76		%	5.35		%			7.58		%	4.19		%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands)

	Quarter Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,		June 30,
	2012			2012			2011			2011			2011			2012		2011
RECONCILIATION OF NON-GAAP TO GAAP (CONTINUED)
Return on Average Tangible Equity (10)
Return on average tangible equity (non-GAAP)	10.03		%	9.57		%	6.76		%	13.83		%	7.16		%	9.81	%	5.72	%
Effect to adjust for tangible assets	-2.26		%	-2.20		%	-1.76		%	-3.07		%	-1.81		%	-2.23	%	-1.53	%
Return on average equity (GAAP)	7.77		%	7.37		%	5.00		%	10.76		%	5.35		%	7.58	%	4.19	%
Tangible Book Value Per Common Share (10)
Tangible book value per common share (non-GAAP)	$	22.86		$	22.24		$	21.89		$	21.91		$	21.18
Effect to adjust for tangible assets	5.30			5.26			5.30			5.35			5.35
Book value per common share (GAAP)	$	28.17		$	27.51		$	27.19		$	27.26		$	26.53
Tangible Equity-to-Tangible Assets (10)
Tangible equity-to-tangible assets (non-GAAP)	8.03		%	7.87		%	8.04		%	7.95		%	7.87		%
Effect to adjust for tangible assets	1.69		%	1.68		%	1.76		%	1.75		%	1.79		%
Equity-to-assets (GAAP)	9.72		%	9.55		%	9.80		%	9.70		%	9.66		%

	Three Months Ended
	June 30, 2012							June 30, 2011
	Average			Interest		Average		Average			Interest		Average
	Balance			Earned/Paid		Yield/Rate		Balance			Earned/Paid		Yield/Rate
YIELD ANALYSIS
Interest-Earning Assets:
Federal funds sold, reverse repo, and time deposits	$	265,461		$	279	0.42	%	304,244			$	361	0.48	%
Investment securities (taxable)	444,458			2,870		2.60	%	207,480			1,741		3.37	%
Investment securities (tax-exempt)	23,876			201		3.39	%	29,318			235		3.22	%
Loans held for sale	29,604			264		3.59	%	13,385			150		4.49	%
Acquired loans, net of allowance for acquired loan losses	484,084			11,869		9.86	%	370,468			10,838		11.73	%
Non-acquired loans (1)	2,456,069			29,987		4.91	%	2,366,905			30,006		5.08	%
Total interest-earning assets	3,703,552			45,470		4.94	%	3,291,800			43,331		5.28	%
Noninterest-Earning Assets:
Cash and due from banks	94,360							92,782
Other assets	545,713							599,975
Allowance for non-acquired loan losses	(47,714		)					(47,985		)
Total noninterest-earning assets	592,359							644,772
Total Assets	$	4,295,911						$	3,936,572
Interest-Bearing Liabilities:
Transaction and money market accounts	$	1,548,083		$	840	0.22	%	$	1,306,883		$	1,706	0.52	%
Savings deposits	296,518			128		0.17	%	260,726			252		0.39	%
Certificates and other time deposits	964,284			1,303		0.54	%	1,091,028			2,703		0.99	%
Federal funds purchased and repurchase agreements	215,678			110		0.21	%	224,163			142		0.25	%
Other borrowings	46,203			554		4.82	%	46,379			528		4.57	%
Total interest-bearing liabilities	3,070,766			2,935		0.38	%	2,929,179			5,330		0.73	%
Noninterest-Bearing Liabilities:
Demand deposits	795,867							610,109
Other liabilities	13,326							28,265
Total noninterest-bearing liabilities (“Non-IBL”)	809,193							638,374
Shareholders’ equity	415,952							369,019
Total Non-IBL and shareholders’ equity	1,225,145							1,007,393
Total liabilities and shareholders’ equity	$	4,295,911						$	3,936,572
Net interest income and margin (NON-TAX EQUIV.)				$	42,535	4.62	%				$	38,001	4.63	%
Net interest margin (TAX EQUIVALENT)						4.69	%						4.70	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands)

	Six Months Ended
	June 30, 2012							June 30, 2011
	Average			Interest		Average		Average			Interest		Average
	Balance			Earned/Paid		Yield/Rate		Balance			Earned/Paid		Yield/Rate
YIELD ANALYSIS
Interest-Earning Assets:
Federal funds sold, reverse repo, and time deposits	$	232,437		$	491	0.42	%	$	298,642		$	714	0.48	%
Investment securities (taxable)	372,705			4,906		2.65	%	212,908			3,598		3.41	%
Investment securities (tax-exempt)	23,698			395		3.35	%	29,619			450		3.06	%
Loans held for sale	31,838			585		3.70	%	16,312			294		3.63	%
Acquired loans, net of allowance for acquired loan losses	420,876			20,979		10.02	%	365,450			18,991		10.48	%
Non-acquired loans (1)	2,456,075			60,334		4.94	%	2,338,901			58,539		5.05	%
Total interest-earning assets	3,537,629			87,690		4.98	%	3,261,832			82,586		5.11	%
Noninterest-Earning Assets:
Cash and due from banks	93,284							86,813
Other assets	544,516							565,446
Allowance for non-acquired loan losses	(48,515		)					(47,582		)
Total noninterest-earning assets	589,285							604,677
Total Assets	$	4,126,914						$	3,866,509
Interest-Bearing Liabilities:
Transaction and money market accounts	$	1,489,451		$	1,847	0.25	%	$	1,279,208		$	3,882	0.61	%
Savings deposits	282,384			275		0.20	%	244,765			513		0.42	%
Certificates and other time deposits	917,905			2,644		0.58	%	1,111,133			5,984		1.09	%
Federal funds purchased and repurchase agreements	222,389			236		0.21	%	225,342			301		0.27	%
Other borrowings	46,342			1,116		4.84	%	47,459			1,059		4.50	%
Total interest-bearing liabilities	2,958,471			6,118		0.42	%	2,907,907			11,739		0.81	%
Noninterest-Bearing Liabilities:
Demand deposits	748,152							574,914
Other liabilities	20,627							25,577
Total noninterest-bearing liabilities (“Non-IBL”)	768,779							600,491
Shareholders’ equity	399,664							358,111
Total Non-IBL and shareholders’ equity	1,168,443							958,602
Total liabilities and shareholders’ equity	$	4,126,914						$	3,866,509
Net interest income and margin (NON-TAX EQUIV.)				$	81,572	4.64	%				$	70,847	4.38	%
Net interest margin (TAX EQUIVALENT)						4.70	%						4.43	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands)

																Second
	Three Months Ended															Quarter		Six Months Ended						YTD
	June 30,			March 31,			December 31,			September 30,			June 30,			2012 - 2011		June 30,						2012 - 2011
	2012			2012			2011			2011			2011			% Change		2012			2011			% Change
NONINTEREST INCOME & EXPENSE
Noninterest income:
Gain on acquisition	$	—		$	—		$	—		$	11,001		$	—				—			5,528
Service charges on deposit accounts	5,886			5,447			5,959			6,050			5,615			4.8	%	11,333			10,645			6.5	%
Mortgage banking income	2,962			1,830			1,942			2,341			1,125			163.3	%	4,792			1,988			141.0	%
Bankcard services income	3,618			3,320			3,037			2,980			3,045			18.8	%	6,938			5,704			21.6	%
Trust and investment services income	1,642			1,397			1,237			1,453			1,525			7.7	%	3,039			2,774			9.6	%
Securities gains (losses), net (8)	61			—			(25		)	(100		)	10			-510.0	%	61			333			-81.7	%
Accretion (amortization) on FDIC indemnification asset	(4,370		)	(3,233		)	(3,086		)	(3,515		)	(3,133		)	-39.5	%	(7,603		)	(3,534		)	115.1	%
Other	1,945			712			599			581			605			221.5	%	2,657			1,227			116.5	%
Total noninterest income	$	11,744		$	9,473		$	9,663		$	20,791		$	8,792		33.6	%	$	21,217		$	24,665		-14.0	%
Noninterest expense:
Salaries and employee benefits	$	18,262		$	18,048		$	16,930		$	17,345		$	18,016		1.4	%	$	36,310		$	34,662		4.8	%
Net occupancy expense	2,478			2,248			2,309			2,443			2,346			5.6	%	4,726			4,922			-4.0	%
Furniture and equipment expense	2,371			2,239			2,211			2,127			2,181			8.7	%	4,610			4,138			11.4	%
Information services expense	2,902			2,468			2,817			2,851			2,503			15.9	%	5,370			4,844			10.9	%
FDIC assessment and other regulatory charges	1,073			1,037			980			859			1,255			-14.5	%	2,110			2,734			-22.8	%
OREO expense and loan related	2,115			2,716			4,835			4,037			2,662			-20.5	%	4,831			5,310			-9.0	%
Advertising and marketing	553			757			707			824			289			91.3	%	1,310			1,198			9.3	%
Business development and staff related	689			752			944			771			873			-21.1	%	1,441			1,678			-14.1	%
Professional fees	732			633			253			458			616			18.8	%	1,365			934			46.1	%
Amortization of intangibles	540			500			523			517			505			6.9	%	1,040			951			9.4	%
Merger and conversion related expense	1,998			96			404			1,587			598			234.1	%	2,094			1,207
Other	3,796			3,725			3,635			3,339			3,204			18.5	%	7,521			6,694			12.4	%
Total noninterest expense	$	37,509		$	35,219		$	36,548		$	37,158		$	35,048		7.0	%	$	72,728		$	69,272		5.0	%

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 second quarter of 2012 by the total net income reported in the first quarter of 2012.

(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 gain on acquisitions of $11.0 million for the quarter ended September 30, 2011; and (b) pre-tax merger and conversion related expense of $1,998,000, $96,000, $404,000, $1.6 million, and $598,000, for the quarters ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, and June 30, 2011, respectively.

(4) Repossessed assets includes OREO and other nonperforming assets.

(5) Calculated by dividing total non-acquired NPAs by total assets.

(6) The operating efficiency ratio (tax equivalent) would be 64.70% for June 30, 2012 if adjusted by subtracting $1,998,000 of merger and conversion related expenses from non-interest expense. The efficiency ratio (tax equivalent) would be 71.83% for March 31, 2012 if adjusted by subtracting $96,000 of merger and conversion 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 and conversion 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 and conversion 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 and conversion related expense of $598,000 from non-interest expense.

(7) Acquired loans are not included in non-performing loans because the accretion method is being used for all acquired loan pools.

(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) June 30, 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 and conversion 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.