SouthState (SSB) 8-K Declares Quarterly Cash Dividend

Exhibit 99.1

NEWS

For Immediate Release	Media Contact:	Donna Pullen (803) 765-4558
April 26, 2013	Analyst Contact:	John C. Pollok (803) 765-4628

SCBT Reports Operating Results for 1Q 2013 of $0.71 per share;

Declares Quarterly Cash Dividend

COLUMBIA, S.C.—April 26, 2013—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 period ended March 31, 2013.  Highlights of the first quarter 2013 include:

·Net income of $10.6 million, or $0.63 diluted EPS in 1Q 2013 compared to $5.9 million, or $0.38 diluted EPS in 4Q 2012 and $7.0 million, or $0.50 diluted EPS, in 1Q 2012;

·Operating earnings, which excludes merger-related expense and securities gains or losses, of $12.0 million, or $0.71 diluted EPS in 1Q 2013 compared to $11.1 million, or $0.72 diluted EPS in 4Q 2012 and $7.1 million, or $0.51 diluted EPS in 1Q 2012;

·Completed the Savannah Bancorp, Inc. (“Savannah”) system conversion and integration;

·Core deposit growth, excluding CDs and the Peoples and Savannah acquisitions, up $32.8 million in 1Q 2013, or 5.2% annualized growth;

·Non-interest bearing deposits exceeded $1.0 billion;

·Return on average assets was 0.84% annualized in 1Q 2013 compared to 0.52% in 4Q 2012 and 0.71% in 1Q 2012;

·Operating efficiency ratio was 64.5% in 1Q 2013 compared to 62.8% in 4Q 2012 and compared to 66.3% in 1Q 2012;

·Net charge-offs of non-acquired loans decreased to 0.56% annualized for 1Q 2013, compared to 0.64% annualized for 4Q 2012 and 0.66% annualized for 1Q 2012;

·Non-performing Assets (NPAs):  1.49% of total assets for 1Q 2013 compared to 1.58% for 4Q 2012 and 2.26% for 1Q 2012; 2.91% of loans and repossessed assets, excluding acquired assets, for 1Q 2013 compared to 3.13% for 4Q 2012 and 3.72% for 1Q 2012; and

·Legacy loan growth for 1Q 2013 was $33.3 million or 5.2% annualized.

Quarterly Cash Dividend

The Board of Directors of SCBT has declared a quarterly cash dividend of $0.18 per share payable on its common stock.  This per share amount is equal to the dividend paid in the immediately preceding quarter and is $0.01 per share, or 5.9%, higher than a year ago.  The dividend will be payable on May 24, 2013 to shareholders of record as of May 17, 2013.

First Quarter 2013 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 $10.6 million, or $0.63 per diluted share, for the three months ended March 31, 2013 compared to consolidated net income of $5.9 million, or $0.38 per diluted share, for the fourth quarter of 2012.  This $4.7 million increase was primarily the net result of improved net interest income, reduced provision for loan losses, and a reduction in merger-related

expenses.  The increases were offset by non-interest expense increases which are primarily due to salary and benefits expense increases.

“I am encouraged that our earnings continue to improve each quarter.  We had solid performance this quarter and also experienced some impact from the conversion and integration of Savannah, as well as some seasonality in non-interest income,” said Robert R. Hill, Jr., president and CEO.  “Our legacy loan growth continued at a nice pace of 5.2% annualized, and our non-interest demand deposits now exceed $1.0 billion.  We also enjoyed strong growth in our wealth management area and bank card revenue, but experienced lower deposit service charge income and mortgage banking income due to seasonality.  Our operating performance remained steady compared to the prior quarter with an operating return on average assets of 0.95% and operating return on equity of 9.49%.  With the integration of Savannah, continued credit improvement in our acquired and non-acquired loan portfolios, and the announcement of the merger with First Financial Holdings, we remain very optimistic about the opportunities for continued improvement in our performance.”

Asset Quality

During the first quarter of 2013, SCBT continued to experience improvement in asset quality, excluding acquired loans and OREO, as nonperforming loans declined by $5.3 million, or 8.6%, and classified assets declined by $2.3 million, or 1.6% from the fourth quarter of 2012.  We continue to see meaningful improvement in the trailing average of historical loan losses as the high charge-off quarters from prior periods are being replaced with much lower current loss rates.  Nonperforming assets to total assets declined to 1.49% primarily due to the decrease in non-acquired nonaccrual loans.  NPAs, excluding acquired NPAs, declined by $4.7 million from the fourth quarter 2012 level.  Improvements in asset quality continue as we experience improvement in housing starts (permits), home sales, and lower unemployment rates.

At March 31, 2013, the allowance for non-acquired loan losses was $41.7 million, or 1.60% of non-acquired period-end loans.  The current allowance for loan losses provides 0.73 times coverage of period-end non-acquired nonperforming loans.  Net charge-offs within the non-acquired loan portfolio decreased to $3.6 million, or 0.56% annualized from $4.1 million, or 0.64% annualized in the fourth quarter of 2012, and from $4.1 million, or 0.66% annualized in the first quarter of 2012.

Non-acquired other real estate owned (“OREO”) increased modestly by $611,000 from the fourth quarter of 2012 and decreased by $1.7 million from the first quarter of 2012.  During the first quarter, the Company recorded write-downs on 23 properties totaling $1.1 million; sold $2.0 million of non-acquired OREO for a net $7,000 gain; and added 19 properties for a total of $3.6 million.

Net Interest Income and Margin

Non-taxable equivalent net interest income was $53.8 million for the first quarter of 2013, a $5.9 million increase from the fourth quarter 2012, resulting from the following:

1.Higher balance of average acquired loans (up $414.3 million) along with credit releases totaling $6.6 million resulted in an increase of $6.7 million of interest income on acquired loans; partially offset by

2.A decrease of 15 basis points in the yield on non-acquired loans which resulted in a decrease of $958,000 of interest income on non-acquired loans, with $616,000 related to the fewer days (90 vs. 92) in the first quarter compared to the fourth quarter of 2012.

Taxable-equivalent net interest margin increased 24 basis points from the first quarter of 2012 and 6 basis points from the fourth quarter of 2012 to 4.94%.  The average yield on interest earning assets increased 3 basis points while the average rate on interest-bearing liabilities declined 18 basis points

from the first quarter of 2012.  During the first quarter of 2013, average total assets increased to $5.1 billion and average earning assets increased to almost $4.5 billion.  This growth in average total assets was supported by growth in average total deposits to $4.2 billion.  At March 31, 2013, non-interest bearing deposits exceeded $1.0 billion.

Noninterest Income and Expense

Noninterest income was relatively flat for the first quarter of 2013 compared to the first quarter of 2012.  Increases in all noninterest income categories (excluding negative accretion on the indemnification asset) totaling $4.0 million were offset by the $3.9 million increase in the negative accretion on the FDIC indemnification asset.  The negative accretion results from the reduction of expected cash flows of this asset related to certain pools of acquired loans which had improved estimated cash flows, and is being recognized over the shorter of the underlying assets remaining life or remaining term of the loss share agreements.

Compared to the fourth quarter of 2012, noninterest income was down a total of $1.2 million, excluding securities gains (losses).  This decrease was the result of the following:  (1) mortgage banking income decreased $819,000 due to fewer loans sold and reduced pipeline of mortgage loans; (2) service charges on deposit accounts were down $552,000 due to seasonality; and (3) the negative accretion on the FDIC indemnification asset increased by $624,000.  Partially offsetting these decreases were increases of $570,000 in trust and investment services income and $228,000 in bankcard services income.

Noninterest expense was $46.4 million in the first quarter of 2013, a 31.9% or $11.2 million increase from $35.2 million in the first quarter of 2012.  This increase was driven primarily by increased merger-related charges from the Savannah merger of $1.7 million and from the proposed First Financial merger of $300,000, and an increase in salaries and benefits of $5.2 million, or 28.8%.  The increase in salaries and employee benefits resulted primarily from the impact of a full quarter of the addition of new FTEs largely related to the two acquisitions completed during 2012.

Compared to the fourth quarter of 2012, noninterest expense decreased by $1.7 million.  The decrease resulted from a $5.6 million decline in merger-related expenses.  This decline was partially offset by increases in most other noninterest expense categories from the full quarter impact of Savannah.

Balance Sheet and Capital

At March 31, 2013, SCBT’s total assets were $5.1 billion, up from $4.0 billion at March 31, 2012, and relatively flat from $5.1 billion at December 31, 2012.  Since March 31, 2012, the company’s balance sheet has grown by almost $1.1 billion, or 27.1%, due primarily to closing of the Peoples Bancorporation, Inc. and The Savannah Bancorp, Inc. acquisitions.  The asset growth was spread among increases in investment securities, acquired loans, non-acquired loans, premises and equipment, bank owned life insurance, and intangibles; and these were offset by declines in OREO of $12.5 million and decreases in FDIC receivables of $107.0 million.  The asset growth was supported primarily by $698.9 million in core deposit growth, $93.3 million in correspondent bank federal funds purchased and $127.7 million in additional capital.

The Company’s book value per share increased to $30.22 per share at March 31, 2013, compared to $29.97 at December 31, 2012.  Capital increased by $6.7 million due primarily to net income of $10.6 million partially offset by $3.1 million in dividends paid to our shareholders.  Tangible book value (“TBV”) per share increased by $0.35 per share to $22.89 at March 31, 2013 from $22.54 at December 31, 2012 due to the capital increases described above.

The total risk-based capital ratio is estimated to have increased by 40 basis points from the fourth quarter of 2012 to 14.3%, due primarily to a change in risk-weighted asset mix relative to the increase in capital.  Tier 1 leverage ratio decreased to 8.8% from 9.8% at December 31, 2012.  The decline is driven by an almost $600.0 million increase in average total assets due to including a full quarter of Savannah assets in the average balance.  The Company’s capital positions remain “well-capitalized” by all measures at March 31, 2013.

“Our net interest income remains strong with an increase of $5.9 million compared to last quarter, primarily the result of the addition of the Savannah acquired loan portfolio for the whole quarter,” said John C. Pollok, CFO and COO.  “With the conversion of Savannah now completed, we are now planning the merger with First Financial over the next several months.”

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

SCBT Financial Corporation (the “Company”), Columbia, South Carolina is a registered bank holding company incorporated under the laws of South Carolina.  The Company consists of SCBT, the Bank and the following divisions:  NCBT, CBT, The Savannah Bank, and Minis & Co., Inc.  Providing financial services for over 78 years, SCBT Financial Corporation operates 81 locations in 19 South Carolina counties, 10 North Georgia counties, 2 Coastal Georgia counties and Mecklenburg County in North Carolina.  SCBT Financial Corporation has assets of approximately $5.1 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.

-----

SCBT Financial Corporation will hold a conference call on Friday, April 26th at 11 a.m. Eastern Time where management will review earnings and performance trends.  Callers wishing to participate may call toll-free by dialing 866-652-5200.  The number for international participants is 412-317-6060.  The conference ID number is 10026988.  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 26th by 2:00 pm Eastern Time until 9:00 a.m. on May 13th.  To listen to the replay, dial 877-344-7529 or 412-317-0088.  The passcode is 10026988.

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 report 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.   Forward looking statements generally include words such as “expects,” “projects,” “anticipates,” “believes,” “intends,” “estimates,” “strategy,” “plan,” “potential,” “possible” and other similar expressions.   The Company 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) the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive merger agreement between the Company and First Financial Holdings, Inc. (“First Financial”); (2) the outcome of any legal proceedings that may be instituted against the Company or First Financial; (3) the inability to complete the transactions contemplated by the Merger Agreement due to the failure to satisfy each transaction’s respective conditions to completion, including the receipt of regulatory approval; (4) 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; (5) 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; (6) liquidity risk affecting the bank’s ability to meet its obligations when they come due; (7) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (8) transaction risk arising from problems with service or product delivery; (9) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (10) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (11) reputation risk that adversely affects earnings or capital arising from negative public opinion; (12) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (13) cybersecurity risk related to our dependence on internal computer systems and the technology of outside service providers, as well as the potential impacts of third-party security breaches,  subjects the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (14) economic downturn risk resulting in deterioration in the credit markets; (15) greater than expected noninterest expenses; (16) excessive loan losses; (17) failure to realize synergies and other financial benefits from, and to limit liabilities associates with, mergers and acquisitions, including mergers with Peoples Bancorporation (“Peoples”), The Savannah Bancorp, Inc. (“Savannah”), and First Financial, within the expected time frame; (18) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with the integration of Savannah and First Financial, including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters; (19) the risks of fluctuations in market prices for Company Common Stock that may or may not reflect economic condition or performance of the Company; (20) the payment of dividends on Company Common Stock is subject to regulatory supervision as well as the discretion of the board of directors of the Company; and (21) 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 Ended															Quarter
	March 31,			December 31,			September 30,			June 30,			March 31,			2013 - 2012
	2013			2012			2012			2012			2012			% Change
EARNINGS SUMMARY (non tax equivalent)
Interest income	$	56,169		$	50,263		$	49,535		$	45,470		$	42,220		33.0	%
Interest expense	2,368			2,351			2,625			2,936			3,182			-25.6	%
Net interest income	53,801			47,912			46,910			42,534			39,038			37.8	%
Provision for loan losses (1)	1,060			2,211			4,044			4,641			2,723			-61.1	%
Noninterest income	9,523			10,900			9,166			11,744			9,473			0.5	%
Noninterest expense	46,441			48,139			38,031			37,509			35,219			31.9	%
Income before provision for income taxes	15,823			8,462			14,001			12,128			10,569			49.7	%
Provision for income taxes	5,174			2,552			4,938			4,097			3,541			46.1	%
Net income	$	10,649		$	5,910		$	9,063		$	8,031		$	7,028		51.5	%
Effective tax rate	32.70		%	30.16		%	35.27		%	33.78		%	33.50		%
Basic weighted-average common shares	16,769,049			15,320,472			14,920,423			14,650,914			13,882,801			20.8	%
Diluted weighted-average common shares	16,935,601			15,446,778			15,043,067			14,733,325			13,951,290			21.4	%
Earnings per share - Basic	$	0.64		$	0.39		$	0.61		$	0.55		$	0.51		25.5	%
Earnings per share - Diluted	0.63			0.38			0.60			0.55			0.50			26.0	%
Cash dividends declared per share	$	0.18		$	0.18		$	0.17		$	0.17		$	0.17		5.9	%
Dividend payout ratio (2)	28.75		%	46.06		%	28.34		%	31.93		%	34.00		%	-15.4	%
Operating Earnings (non-GAAP) (3)
Net income (GAAP)	$	10,649		$	5,910		$	9,063		$	8,031		$	7,028		51.5	%
Securities (gains) losses, net of tax	—			(89		)	—			(40		)	—
Merger and conversion related expense, net of tax	1,321			5,274			357			1,323			65			1937.6	%
Net operating earnings (loss) (non-GAAP)	$	11,970		$	11,095		$	9,420		$	9,314		$	7,093		68.8	%
Operating earnings (loss) per share - Basic	$	0.71		$	0.72		$	0.63		$	0.64		$	0.51		39.2	%
Operating earnings (loss) per share - Diluted	0.71			0.72			0.63			0.63			0.51			39.2	%
																First
	AVERAGE for Quarter Ended															Quarter
	March 31,			December 31,			September 30,			June 30,			March 31,			2013 - 2012
	2013			2012			2012			2012			2012			% Change
BALANCE SHEET HIGHLIGHTS
Loans held for sale	$	51,216		$	60,183		$	56,300		$	29,604		$	34,073		50.3	%
Acquired loans, net of allowance for acquired loan losses	997,010			582,726			501,214			484,084			357,668			178.8	%
Non-acquired loans	2,576,545			2,528,753			2,497,478			2,456,069			2,456,080			4.9	%
Total loans (1)	3,573,555			3,111,479			2,998,692			2,940,153			2,813,748			27.0	%
FDIC receivable for loss share agreements	139,172			162,580			194,116			219,183			246,556			-43.6	%
Total investment securities	553,214			510,434			501,816			468,334			324,473			70.5	%
Intangible assets	125,257			87,372			79,857			79,583			74,089			69.1	%
Earning assets	4,489,187			3,972,280			3,766,889			3,703,552			3,371,705			33.1	%
Total assets	5,117,003			4,517,076			4,331,436			4,295,911			3,957,918			29.3	%
Noninterest-bearing deposits	969,400			886,240			813,394			795,867			700,438			38.4	%
Interest-bearing deposits	3,236,610			2,853,253			2,800,446			2,808,884			2,570,595			25.9	%
Total deposits	4,206,010			3,739,493			3,613,840			3,604,751			3,271,033			28.6	%
Federal funds purchased and repurchase agreements	319,602			247,970			223,844			215,678			229,099			39.5	%
Other borrowings	54,713			47,555			45,908			46,203			46,480			17.7	%
Shareholders’ equity	511,392			450,446			429,183			415,952			383,377			33.4	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands, except per share data)

																First
	ENDING Balance															Quarter
	March 31,			December 31,			September 30,			June 30,			March 31,			2013 - 2012
	2013			2012			2012			2012			2012			% Change
BALANCE SHEET HIGHLIGHTS
Loans held for sale	$	50,449		$	65,279		$	71,585		$	42,525		$	34,706		45.4	%
Acquired loans	995,255			1,074,742			520,991			560,058			369,144			169.6	%
Non-acquired loans	2,604,298			2,571,003			2,517,352			2,481,251			2,437,314			6.9	%
Total loans (1)	3,599,553			3,645,745			3,038,343			3,041,309			2,806,458			28.3	%
FDIC receivable for loss share agreements	124,340			146,171			174,321			200,569			231,331			-46.3	%
Total investment securities	533,255			560,091			500,587			511,138			357,448			49.2	%
Intangible assets	124,668			125,801			79,391			79,971			73,926			68.6	%
Allowance for acquired loan losses	(31,277		)	(32,132		)	(31,138		)	(35,813		)	(34,355		)	-9.0	%
Allowance for non-acquired loan losses (1)	(41,669		)	(44,378		)	(46,439		)	(47,269		)	(47,607		)	-12.5	%
Premises and equipment	110,792			115,583			105,579			106,458			93,209			18.9	%
Total assets	5,141,929			5,136,446			4,325,232			4,373,269			4,046,343			27.1	%
Noninterest-bearing deposits	1,002,662			981,963			818,633			806,235			757,777			32.3	%
Interest-bearing deposits	3,216,694			3,316,397			2,770,665			2,854,737			2,598,860			23.8	%
Total deposits	4,219,356			4,298,360			3,589,298			3,660,972			3,356,637			25.7	%
Federal funds purchased and repurchase agreements	328,701			238,621			226,330			220,264			235,412			39.6	%
Other borrowings	54,638			54,897			45,807			46,105			46,397			17.8	%
Total liabilities	4,627,718			4,628,897			3,891,308			3,948,363			3,659,836			26.4	%
Shareholders’ equity	514,211			507,549			433,924			424,906			386,507			33.0	%
Common shares issued and outstanding	17,017,904			16,937,464			15,114,185			15,085,991			14,052,177			21.1	%
																First
																Quarter
	March 31,			December 31,			September 30,			June 30,			March 31,			2013 - 2012
	2013			2012			2012			2012			2012			% Change
NONPERFORMING ASSETS (ENDING BALANCE)
Non-acquired
Non-acquired nonaccrual loans	$	42,945		$	48,387		$	46,295		$	47,940		$	59,278		-27.6	%
Restructured loans	13,636			13,151			12,882			9,530			10,578			28.9	%
Other real estate owned (“OREO”) not covered under FDIC loss share agreements	19,680			19,069			22,424			25,518			21,381			-8.0	%
Accruing loans past due 90 days or more	121			500			156			137			130			-6.9	%
Other nonperforming assets	—			—			—			—			24			-100.0	%
Total non-acquired nonperforming assets	76,382			81,107			81,757			83,125			91,391			-16.4	%
Acquired (7)
Acquired nonaccrual loans	—			—			—			—			—
OREO covered under FDIC loss share agreements	34,244			34,257			47,063			53,146			61,788			-44.6	%
OREO not covered under FDIC loss share agreements	16,766			13,179			5,059			5,745			—
Other nonperforming assets	26			44			57			73			215
Total acquired nonperforming assets	51,036			47,480			52,179			58,964			62,003			-17.7	%
Total nonperforming assets	$	127,418		$	128,587		$	133,936		$	142,089		$	153,394		-16.9	%
Excluding Acquired Assets
Total nonperforming assets as a percentage of total non-acquired loans and repossessed assets (1) (4)	2.91		%	3.13		%	3.22		%	3.32		%	3.72		%
Total nonperforming assets as a percentage of total assets (5)	1.49		%	1.58		%	1.89		%	1.90		%	2.26		%
NPLs as a percentage of period end non-acquired loans	2.18		%	2.41		%	2.36		%	2.32		%	2.87		%
Including Acquired Assets
Total nonperforming assets as a percentage of total loans and repossessed assets (1) (4)	3.47		%	3.46		%	4.31		%	4.55		%	5.31		%
Total nonperforming assets as a percentage of total assets	2.48		%	2.50		%	3.10		%	3.25		%	3.79		%
NPLs as a percentage of period end loans	1.58		%	1.70		%	1.95		%	1.89		%	2.49		%
OTHER ASSET QUALITY INFORMATION
Classified Assets (Ending Balance) (11)
Classified loans	$	121,222		$	124,133		$	135,095		$	135,099		$	156,118		-22.4	%
OREO and other nonperforming assets	19,680			19,069			22,424			25,518			21,405			-8.1	%
Total classified assets	$	140,902		$	143,202		$	157,519		$	160,617		$	177,523		-20.6	%
Tier 1 capital and non-acquired allowance for loan losses	$	484,744		$	477,686		$	444,200		$	436,964		$	406,070		19.4	%
Classified assets as a percentage of Tier 1 capital and non-acquired allowance for loan losses	29.07		%	29.98		%	35.46		%	36.76		%	43.72		%
Non-acquired Loans 30-89 Day Past Due	$	7,199		$	7,189		$	9,270		$	10,464		$	7,290		-1.3	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands)

																First
	Quarter Ended															Quarter
	March 31,			December 31,			September 30,			June 30,			March 31,			2013 - 2012
	2013			2012			2012			2012			2012			% Change
ALLOWANCE FOR LOAN LOSSES (1)
Non-acquired Loans:
Balance at beginning of period	$	44,378		$	46,439		$	47,269		$	47,607		$	49,367		-10.1	%
Loans charged off	(4,148		)	(4,291		)	(5,506		)	(5,114		)	(5,344		)	-22.4	%
Overdrafts charged off	(459		)	(446		)	(434		)	(441		)	(354		)	29.7	%
Loan recoveries	826			550			481			700			1,424			-42.0	%
Overdraft recoveries	219			131			129			125			216			1.4	%
Net charge-offs	(3,562		)	(4,056		)	(5,330		)	(4,730		)	(4,058		)	-12.2	%
Provision for loan losses on non-acquired loans	853			1,995			4,500			4,392			2,298			-62.9	%
Balance at end of period, non-acquired loans	41,669			44,378			46,439			47,269			47,607			-12.5	%
Acquired Loans:
Balance at beginning of period	32,132			31,138			35,812			34,355			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	(855		)	994			(4,674		)	1,457			2,735
Benefit attributable to FDIC loss share agreements	1,062			(778		)	4,218			(1,208		)	(2,310		)
Net provision for loan losses on acquired loans	207			216			(456		)	249			425
Provision for loan losses recorded through the FDIC loss share receivable	(1,062		)	778			(4,218		)	1,208			2,310
Balance at end of period, acquired loans	31,277			32,132			31,138			35,812			34,355
Balance at end of period, total allowance for loan losses	$	72,946		$	76,510		$	77,577		$	83,081		$	81,962		-11.0	%
Total provision for loan losses charged to operations	$	1,060		$	2,211		$	4,044		$	4,641		$	2,723
Allowance for non-acquired loan losses as a percentage of non-acquired loans (1)	1.60		%	1.73		%	1.84		%	1.91		%	1.95		%
Allowance for loan losses as a percentage of total loans (1)	2.03		%	2.10		%	2.55		%	2.73		%	2.92		%
Allowance for non-acquired loan losses as a percentage of non-acquired nonperforming loans	73.49		%	71.53		%	78.27		%	82.05		%	68.02		%
Net charge-offs on non-acquired loans as a percentage of average non-acquired loans (annualized) (1)	0.56		%	0.64		%	0.85		%	0.77		%	0.66		%
																First
																Quarter
	March 31,			December 31,			September 30,			June 30,			March 31,			2013 - 2012
	2013			2012			2012			2012			2012			% Change
LOAN PORTFOLIO (ENDING balance) (1)
Acquired covered loans	$	257,066		$	282,728		$	309,034		$	332,874		$	363,051		-29.2	%
Acquired non-covered loans	738,189			792,014			211,957			227,184			6,093			12015.4	%
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development	273,488			273,420			273,606			279,519			294,865			-7.2	%
Commercial non-owner occupied	298,707			290,071			278,935			284,147			284,044			5.2	%
Total commercial non-owner occupied real estate	572,195			563,491			552,541			563,666			578,909			-1.2	%
Consumer real estate:
Consumer owner occupied	443,134			434,503			430,825			420,298			407,697			8.7	%
Home equity loans	249,356			255,284			255,677			257,061			258,054			-3.4	%
Total consumer real estate	692,490			689,787			686,502			677,359			665,751			4.0	%
Commercial owner occupied real estate	796,139			784,152			787,623			763,338			744,441			6.9	%
Commercial and industrial	291,308			279,763			245,285			228,010			216,083			34.8	%
Other income producing property	131,776			133,713			131,832			132,193			130,177			1.2	%
Consumer non real estate	93,997			86,934			86,729			87,290			85,350			10.1	%
Other	26,393			33,163			26,840			29,395			16,603			59.0	%
Total non-acquired loans	2,604,298			2,571,003			2,517,352			2,481,251			2,437,314			6.9	%
Total loans (net of unearned income) (1)	$	3,599,553		$	3,645,745		$	3,038,343		$	3,041,309		$	2,806,458		28.3	%
Loans held for sale	$	50,449		$	65,279		$	71,585		$	42,525		$	34,706		45.4	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands, except per share data)

	Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2013			2012			2012			2012			2012
SELECTED RATIOS
Return on average assets (annualized)	0.84		%	0.52		%	0.83		%	0.75		%	0.71		%
Operating return on average assets (annualized) (non-GAAP) (3)	0.95		%	0.98		%	0.87		%	0.88		%	0.72		%
Return on average equity (annualized)	8.45		%	5.22		%	8.40		%	7.77		%	7.37		%
Operating return on average equity (annualized) (non-GAAP) (3)	9.49		%	9.80		%	8.73		%	9.05		%	7.44		%
Return on average tangible equity (annualized) (non-GAAP) (10)	11.92		%	6.91		%	10.74		%	9.92		%	9.57		%
Net interest margin (tax equivalent)	4.94		%	4.88		%	5.03		%	4.69		%	4.70		%
Efficiency ratio (tax equivalent)	72.37		%	80.95		%	66.91		%	68.34		%	72.02		%
Operating efficiency ratio excluding OREO expense	64.47		%	62.84		%	58.96		%	60.84		%	66.27		%
Book value per common share	$	30.22		$	29.97		$	28.71		$	28.17		$	27.51
Tangible book value per common share (non-GAAP) (10)	$	22.89		$	22.54		$	23.46		$	22.86		$	22.24
Common shares issued and outstanding	17,017,904			16,937,464			15,114,185			15,085,991			14,052,177
Equity-to-assets	10.00		%	9.88		%	10.03		%	9.72		%	9.55		%
Tangible equity-to-tangible assets (non-GAAP) (10)	7.76		%	7.62		%	8.35		%	8.03		%	7.87		%
Tier 1 leverage (9)	8.8		%	9.8		%	9.3		%	9.2		%	9.2		%
Tier 1 risk-based capital (9)	13.1		%	12.7		%	14.0		%	13.9		%	14.5		%
Total risk-based capital (9)	14.3		%	13.9		%	15.2		%	15.1		%	15.8		%
	Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2013			2012			2012			2012			2012
RECONCILIATION OF NON-GAAP TO GAAP
Pre-tax, Pre-provision Operating Earnings (6)
Net income (GAAP)	$	10,649		$	5,910		$	9,063		$	8,031		$	7,028		51.5	%
Provision for loan losses (1)	1,060			2,211			4,044			4,641			2,723			-61.1	%
Provision for income taxes	5,174			2,552			4,938			4,097			3,541			46.1	%
Pre-tax, pre-provision income	16,883			10,673			18,045			16,769			13,292			27.0	%
Securities gains	—			(128		)	—			(61		)	—
Merger and conversion related expense	1,963			7,552			568			1,998			96
Pre-tax, pre-provision operating earnings (non-GAAP)	$	18,846		$	18,097		$	18,613		$	18,706		$	13,388		40.8	%
Operating efficiency ratio excluding OREO expense
Operating efficiency ratio excluding OREO expense	64.47		%	62.84		%	58.96		%	60.84		%	66.27		%
Effect to adjust for OREO and loan related expense	4.84		%	5.41		%	6.95		%	3.86		%	5.56		%
Effect to adjust for merger and conversion expenses	2.80		%	12.70		%	1.00		%	3.64		%	0.19		%
Efficiency ratio (Tax Equivalent)	72.37		%	80.95		%	66.91		%	68.34		%	72.02		%
Operating Return of Average Assets (3)
Operating return on average assets (non-GAAP)	0.95		%	0.98		%	0.87		%	0.88		%	0.72		%
Effect to adjust for securities gains (losses)	0.00		%	0.01		%	0.00		%	0.00		%	0.00		%
Effect to adjust for merger and conversion related expenses	-0.11		%	-0.47		%	-0.04		%	-0.13		%	-0.01		%
Return on average assets (GAAP)	0.84		%	0.52		%	0.83		%	0.75		%	0.71		%
Operating Return of Average Equity (3)
Operating return on average equity (non-GAAP)	9.49		%	9.80		%	8.73		%	9.05		%	7.44		%
Effect to adjust for securities gains (losses)	0.00		%	0.08		%	0.00		%	0.04		%	0.00		%
Effect to adjust for merger and conversion related expenses	-1.04		%	-4.66		%	-0.33		%	-1.32		%	-0.07		%
Return on average equity (GAAP)	8.45		%	5.22		%	8.40		%	7.77		%	7.37		%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands)

	Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2013			2012			2012			2012			2012
RECONCILIATION OF NON-GAAP TO GAAP (CONTINUED)
Return on Average Tangible Equity (10)
Return on average tangible equity (non-GAAP)	11.92		%	6.91		%	10.74		%	9.92		%	9.57		%
Effect to adjust for intangible assets	-3.47		%	-1.69		%	-2.34		%	-2.15		%	-2.20		%
Return on average equity (GAAP)	8.45		%	5.22		%	8.40		%	7.77		%	7.37		%
Tangible Book Value Per Common Share (10)
Tangible book value per common share (non-GAAP)	$	22.89		$	22.54		$	23.46		$	22.86		$	22.24
Effect to adjust for intangible assets	7.33			7.43			5.25			5.30			5.26
Book value per common share (GAAP)	$	30.22		$	29.97		$	28.71		$	28.17		$	27.51
Tangible Equity-to-Tangible Assets (10)
Tangible equity-to-tangible assets (non-GAAP)	7.76		%	7.62		%	8.35		%	8.03		%	7.87		%
Effect to adjust for intangible assets	2.24		%	2.26		%	1.68		%	1.69		%	1.68		%
Equity-to-assets (GAAP)	10.00		%	9.88		%	10.03		%	9.72		%	9.55		%

	Three Months Ended
	March 31, 2013							March 31, 2012
	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	$	311,202		$	418	0.54	%	199,410			$	212	0.43	%
Investment securities (taxable)	394,917			2,161		2.22	%	263,037			1,691		2.59	%
Investment securities (tax-exempt)	158,297			1,206		3.09	%	61,436			540		3.54	%
Loans held for sale	51,216			382		3.02	%	34,073			322		3.80	%
Acquired loans, net of allowance for acquired loan losses	997,010			23,370		9.51	%	357,668			9,110		10.24	%
Non-acquired loans (1)	2,576,544			28,632		4.51	%	2,456,080			30,345		4.97	%
Total interest-earning assets	4,489,186			56,169		5.07	%	3,371,704			42,220		5.04	%
Noninterest-Earning Assets:
Cash and due from banks	120,005							92,208
Other assets	552,148							543,323
Allowance for non-acquired loan losses	(44,336		)					(49,317		)
Total noninterest-earning assets	627,817							586,214
Total Assets	$	5,117,003						$	3,957,918
Interest-Bearing Liabilities:
Transaction and money market accounts	$	1,852,399		$	605	0.13	%	$	1,430,819		$	1,007	0.28	%
Savings deposits	349,968			81		0.09	%	268,251			146		0.22	%
Certificates and other time deposits	1,034,242			873		0.34	%	871,526			1,341		0.62	%
Federal funds purchased and repurchase agreements	319,602			136		0.17	%	229,099			126		0.22	%
Other borrowings	54,713			673		4.99	%	46,480			563		4.87	%
Total interest-bearing liabilities	3,610,924			2,368		0.27	%	2,846,175			3,183		0.45	%
Noninterest-Bearing Liabilities:
Demand deposits	969,361							700,438
Other liabilities	25,326							27,928
Total noninterest-bearing liabilities (“Non-IBL”)	994,687							728,366
Shareholders’ equity	511,392							383,377
Total Non-IBL and shareholders’ equity	1,506,079							1,111,743
Total liabilities and shareholders’ equity	$	5,117,003						$	3,957,918
Net interest income and margin (NON-TAX EQUIV.)				$	53,801	4.86	%				$	39,037	4.66	%
Net interest margin (TAX EQUIVALENT)						4.94	%						4.70	%

SCBT Financial Corporation

(Unaudited)

(Dollars in thousands)

																First
	Three Months Ended															Quarter
	March 31,			December 31,			September 30,			June 30,			March 31,			2013 - 2012
	2013			2012			2012			2012			2012			% Change
NONINTEREST INCOME & EXPENSE
Noninterest income:
Service charges on deposit accounts	$	5,761		$	6,313		$	6,169		$	5,886		$	5,447		5.8	%
Bankcard services income	3,893			3,665			3,570			3,618			3,320			17.3	%
Mortgage banking income	3,395			4,214			3,526			3,052			1,830			85.5	%
Trust and investment services income	2,314			1,744			1,577			1,642			1,397			65.6	%
Securities gains, net (8)	—			128			—			61			—
Amortization of FDIC indemnification asset	(7,171		)	(6,547		)	(6,623		)	(4,370		)	(3,233		)	-121.8	%
Other	1,331			1,383			947			1,855			712			86.9	%
Total noninterest income	$	9,523		$	10,900		$	9,166		$	11,744		$	9,473		0.5	%
Noninterest expense:
Salaries and employee benefits	$	23,252		$	21,351		$	18,647		$	18,262		$	18,048		28.8	%
Information services expense	3,192			3,060			2,662			2,902			2,468			29.3	%
OREO expense and loan related	3,102			3,221			3,951			2,115			2,716			14.2	%
Net occupancy expense	2,932			2,470			2,621			2,478			2,248			30.4	%
Furniture and equipment expense	2,572			2,340			2,165			2,371			2,239			14.9	%
Merger and conversion related expense	1,963			7,552			568			1,998			96			1944.8	%
Business development and staff related	1,228			1,017			878			689			752			63.3	%
FDIC assessment and other regulatory charges	1,224			887			878			1,073			1,037			18.0	%
Bankcard expense	1,164			985			1,057			1,118			902			29.0	%
Amortization of intangibles	1,034			566			566			540			500			106.8	%
Professional fees	691			673			643			732			633			9.2	%
Advertising and marketing	842			689			736			553			757			11.2	%
Other	3,245			3,328			2,659			2,678			2,823			14.9	%
Total noninterest expense	$	46,441		$	48,139		$	38,031		$	37,509		$	35,219		31.9	%

Notes:

(1) Loan data excludes mortgage loans held for sale.

(2) The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period of 2013.

(3) Operating earnings, operating return on average assets, and operating return on average equity are non-GAAP measures and exclude the after-tax effect of gains on acquisitions, gains or losses on sales of securities, OTTI, and merger and conversion related expense.  Management believes that non-GAAP operating measures provide 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 and the related operating return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis:  (a) pre-tax merger and conversion related expense of $1,963,000, $7,552,000, $568,000, $1,998,000, and $96,000, for the quarters ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012, respectively; and (b) pre-tax securities gains of $128,000 and $61,000 for the quarters ended December 31, 2012 and June 30, 2012, respectively.

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

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

(6) 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, gains or losses on sales of securities, OTTI, and merger and conversion related expense.  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.

(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) March 31, 2013 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.  All ratios are rounded down to one decimal point.

(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.