SCBT Reports Second Quarter Net Earnings; Declares Quarterly Dividend

http://www.businesswire.com/news/home/20100723005215/en

COLUMBIA, S.C.--(Business Wire)--
SCBT Financial Corporation (NASDAQ: SCBT), the holding company for SCBT,
National Association, today released its unaudited results of operations and
other financial information for the three-month period ended June 30, 2010.
Highlights of the second quarter 2010 include:

* Net income of $575,000; diluted earnings per share of $0.05 for the quarter
* Successful conversion of CBT systems to SCBT operating system
* Organic loan growth of $52.2 million for the second quarter; 9.6% annualized
increase
* Core deposit growth --- excluding all CDs --- up $73.2 million; 17.6%
annualized increase
* Strong revenue growth in both net interest income by $2.5 million and
non-interest income $2.6 million over 1Q 2010, excluding securities losses and
gain from acquisition
* Allowance for loan losses: 2.07% of period end loans, excluding covered loans;
up from 1.90% at 1Q 2010
* NPAs: 2.37% of total assets; 3.84% of loans and repossessed assets, excluding
covered assets;
* Net charge-offs --- decreased to 1.41% annualized for the quarter, excluding
covered assets

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
20, 2010 to shareholders of record as of August 13, 2010.

Second Quarter 2010 Results of Operations

Please refer to the accompanying tables for detailed comparative data on results
of operations and financial results.

The Company reported consolidated net income available to common shareholders of
$575,000, or $0.05 per diluted share for the three months ended June 30, 2010
compared to consolidated net income of $1.5 million, or $0.13 per diluted share
for the second quarter of 2009, a $950,000 decrease. This decrease was primarily
the net result of the following items:

* Provision for loan losses increased by $8.0 million over the comparable
quarter within the non-covered SCBT loan portfolio; and
* Increase in non-interest expenses by $8.3 million due primarily to the
addition of the Georgia franchise including merger related expenses of $964,000
for the quarter; offset by
* Increase in pre-tax net interest income of $5.1 million due to increases in
earning assets and related interest income of $3.2 million, and reduction in
interest expense on funding of the balance sheet by $1.9 million; and
* Increase in non-interest income by $3.7 million in all categories due to the
acquisition of CBT and within legacy SCBT; and
* Second quarter of 2009 results included $3.9 million in dividends paid on
preferred stock and accretion on preferred stock discount related to the
redemption of preferred stock issued under the US Treasury TARP Capital Purchase
Program.

The Company recorded additional pre-tax other than temporary impairment ("OTTI")
charges related to pooled trust preferred securities (TRUPs) of $665,000 which
is included in non-interest income, during the second quarter.

"I am pleased that we continued to be one of the few banks that have been
profitable in every quarter of this downturn," said Robert R. Hill, Jr.,
President and CEO. "This was a more challenging quarter due to the integration
of CBT, but year-to-date 2010 continues to be our most profitable six months
ever. The second quarter was comprised of many moving parts as we worked to
integrate the acquisition of CBT. We completed the integration of the operating
system in Georgia to the SCBT operating platform during June, and we closed 10
of the acquired locations. We continued to incur merger costs related to the
integration activities and during the midst of the changes, we have been
successful in retaining almost all of the 109,000 Georgia customer
relationships. These changes resulted in mixed operating results for this
quarter, but prepare us very well for the future. In the Carolinas, we
experienced approximately $52.2 million in loan growth and strong core deposit
growth of $85.9 million from the end of March. We are fortunate to continue to
attract talented bankers and many new customers to our company. Asset quality
for the quarter remained challenging with increased NPA levels. A large portion
of this increase was from three coastal real estate relationships. We did see a
significant reduction in our 30-89 day past due loans and saw some stabilization
in our non-coastal markets. While asset quality deteriorated this quarter, our
asset quality remains manageable."

During the second quarter, the Company incurred $798,000 of merger related
expenses, net of tax, or $0.06 per share, and recorded additional OTTI of
$559,000 after-tax, or $0.04 per share. On a net operating basis which excludes
the two items, SCBT would report an operating gain of $1.9 million, after tax,
or $0.15 per share for the second quarter of 2010, compared to $1.9 million,
after tax or $0.16 per share for the second quarter of 2009.

On a year-to-date basis, the Company recorded a gain on acquisition, after-tax
of $62.5 million, or $4.91 per share; elected to pay off legacy Federal Home
Loan Bank ("FHLB") advances and the fee for the early pay off resulted in an
after-tax charge of $2.0 million, or $0.16 per share; incurred OTTI on certain
pooled trust preferred securities, net of tax of $4.1 million, or $0.32 per
share; and incurred merger related expenses of $3.3 million, net of tax or $0.26
per share. On a net operating basis which excludes these items, SCBT reported a
net operating loss of $0.27 per diluted share for the year compared to net
operating income of $0.48 per share for the first half of 2009.

The Company`s annualized return on average assets (ROAA) for the second quarter
decreased to 0.06% compared to 0.77% for the second quarter of 2009 and 5.72%
for the first quarter of 2010. Total average shareholders' equity at June 30,
2010 was $336.4 million, an increase of $37.6 million, or 12.6% from June 30,
2009. This increase was primarily the result of the gain from the first quarter
acquisition of CBT. Annualized return on average equity (ROAE) for the quarter
was 0.69%, down from 7.23% for the second quarter of 2009. Annualized return on
average tangible equity (ROATE) for the second quarter decreased to 1.42% from
9.43% for the comparable period in the prior year, and decreased from 71.89% in
the first quarter of 2010.

"During the second quarter of 2010, we successfully converted the Georgia
franchise onto the SCBT operating system, elected which offices would remain
open and closed 10 locations, and continued to merge the CBT division into SCBT.
We are beginning to see our CBT operating costs decline and expect to realize
additional cost savings over the remainder of 2010. Our net interest margin
improved from the first quarter, as the adjustments within our balance sheet
made during the first quarter are paying off. Our adjusted efficiency ratio
decreased during the second quarter to 65.1% from 67.2% in the first quarter of
2010. In addition, we have begun to integrate our products and services into our
Georgia markets and expect the last half of 2010 to reflect these actions," said
John C. Pollok, COO.

FDIC-Assisted Acquisition - CBT

During the first quarter of 2010, SCBT entered into a whole bank with loss-share
purchase and assumption agreement with the FDIC to purchase certain assets and
assume most of the deposits (excluding brokered deposits) and certain
liabilities of CBT. The Company acquired assets with a fair value of
approximately $1.0 billion, including $459.5 million in loans, and liabilities
with a fair value of approximately $1.1 billion were also assumed, including
$1.0 billion of deposits. In addition, the Company received cash from the FDIC
totaling approximately $225.7 million, which included the negative bid of $158.0
million.

In connection with the CBT acquisition, SCBT also entered into loss sharing
agreements with the FDIC. Pursuant to the terms of these loss sharing
agreements, the FDIC`s obligation to reimburse SCBT for losses with respect to
certain loans and foreclosed real estate purchased ("covered assets" or "covered
loans"), begins with the first dollar of loss incurred. The FDIC has agreed to
reimburse SCBT for (1) 80% of the losses incurred up to $233.0 million and (2)
95% of losses in excess of $233.0 million. Gains and recoveries on covered
assets will offset losses, or be paid to the FDIC, at the applicable loss share
percentage at the time of recovery.

All assets acquired and liabilities assumed are recorded at estimated fair value
on the date of acquisition. These fair value estimates are considered
preliminary, and are subject to change for up to one year after the closing date
of the acquisition as additional information relative to closing date fair
values may become available. The Company and the FDIC are engaged in on-going
discussions that may impact which assets and liabilities are ultimately acquired
or assumed by the Company and/or the purchase price. During the second quarter
of 2010, the Company continued to gather information regarding the initial fair
value estimates of the assets and liabilities acquired, but have identified no
material adjustments as of June 30, 2010.

Asset Quality

Annualized net charge-offs of the legacy SCBT loan portfolio decreased to 1.41%
from 3.13% experienced in the first quarter of 2010, and increased from 0.74%
experienced in the second quarter of 2009. During the second quarter,
non-performing assets (NPAs) as a percentage of non-covered loans and
repossessed assets increased to 3.84% compared to 1.83% one year ago and 2.89%
for the first quarter of 2010. NPAs, excluding covered assets to total assets at
June 30, 2010 were 2.37%, compared to 1.46% at the end of the second quarter in
2009 and 1.72% at the end of the first quarter 2010. The increase in NPAs
continues to reflect the pressure within the real estate market, especially on
the coast of South Carolina. During the second quarter, the Company`s other real
estate owned ("OREO") increased $484,000 from the prior quarter end, excluding
covered OREO and was $638,000 higher than the balance one year ago.
Non-performing loans (including accruing loans past due 90 days or more)
increased $22.1 million from the first quarter of 2010, excluding covered loans
and by $46.0 million from the end of the second quarter in 2009, excluding
covered loans. The increase from the first quarter was driven primarily by three
relationships along the coast of South Carolina and resulted in $13.1 million
being moved to nonaccrual.

At June 30, 2010, nonperforming loans, excluding covered loans, totaled $75.9
million, representing 3.41% of period-end loans. The allowance for loan losses
at June 30, 2010 was $46.2 million and represented 2.07% of total period-end
loans, excluding covered loans. The current allowance for loan losses provides
.61 times coverage of period-end nonperforming loans, excluding covered loans,
down from the first quarter 2010 level of .77 times coverage. In the second
quarter, net charge-offs were $7.7 million, or an annualized 1.41% of average
loans, excluding covered loans, compared to $4.2 million, or 0.74% in the same
period of 2009 and $16.9 million, or 3.13% in the linked quarter. The provision
for loan losses was $12.5 million for the second quarter of 2010 compared to
$4.5 million for the comparable quarter one year ago, and $20.8 million in the
first quarter of 2010.

Loans and Deposits

The Company`s total loans increased 18.1% since the second quarter of 2009,
driven by the addition of covered loans in the FDIC-assisted acquisition during
the first quarter. Covered loans increased the loan balance by $413.5 million in
comparison to the second quarter of 2009, but this increase has been offset by
$8.7 million in net loan decreases from the legacy SCBT loan portfolio compared
to the second quarter of 2009. These reductions were in construction and land
development loans of $46.0 million, commercial and industrial loans of $1.5
million, consumer non real estate loans of $16.3 million, commercial non-owner
occupied loans of $24.1 million, and other income producing property loans of
$10.1 million. Offsetting the loan reductions has been loan growth in home
equity loans of $12.7 million, consumer owner occupied loans of $15.2 million,
commercial owner occupied loans of $41.9 million, and other loans of $19.4
million. Total non-covered loans outstanding were $2.2 billion at June 30, 2010
compared to $2.2 billion at June 30, 2009. Total covered loans declined by $25.3
million during the quarter from $438.8 million to $413.5 million at June 30,
2010. The balance of mortgage loans held for sale decreased $31.1 million from
June 30, 2009 to $22.7 million at June 30, 2010. During the second quarter of
2010, mortgage loans held for sale decreased as refinancing activities have
fallen off compared to the second quarter of 2009. The balance of mortgage loans
held for sale at June 30, 2010 has now returned to a more normalized level.

Total deposits increased in all categories compared to the second quarter of
2009, primarily due to the FDIC-assisted acquisition of CBT. Total deposits
increased by a total of $16.8 million, or 2.2% annualized, from the end of the
first quarter of 2010, and by $831.5 million, or 38.1% from the second quarter
of 2009. Core deposits (excluding all certificates of deposit) increased $73.2
million, or 17.6% annualized compared to the first quarter of 2010 and by $580.8
million, or 50.4% compared to the second quarter of 2009. The following changes
in deposit categories account for the $16.8 million increase for the quarter:
(1) the largest increase occurred in money market accounts which increased by
$66.9 million, or 47.7% annualized, and (2) all other deposit categories
increased except for CDs less than $100,000 which declined by $25.0 million, or
14.1% annualized, CDs greater than $100,000 which declined by $32.8 million, or
21.0% annualized, and savings accounts which declined by $4.5 million, or 9.1%
annualized. The Company has continued to focus on collecting core deposits
within all of its markets. The Company continues to monitor and adjust rates
paid on certificates of deposits in order to manage its net interest margin. The
Company had no brokered deposits at the end of the second quarter of 2010, and
has not used this funding source since the third quarter of 2009. Total deposits
outstanding at the end of the second quarter of 2010 were $3.0 billion, compared
to $3.0 billion at the end of the first quarter 2010 and compared to $2.2
billion at the end of the second quarter of 2009.

Net Interest Income and Margin

Non-taxable equivalent net interest income (before provision for loan losses)
was $31.2 million for the second quarter of 2010, up 19.8% from $26.0 million in
the comparable period last year. Taxable-equivalent net interest margin
decreased 3 basis points from the second quarter of 2009 to 4.04%. Compared to
the first quarter of 2010, taxable-equivalent net interest margin increased 15
basis points from 3.89%. During the first quarter, the net interest margin of
SCBT declined due to the significant increase in excess liquidity primarily
resulting from the FDIC-assisted acquisition. This excess liquidity continued
and reduced the net interest margin by an estimated 13 basis points for the
second quarter and 20 basis points for the first quarter. Interest rates remain
at very low levels and the Company has continued to manage deposit pricing and
funding sources to limit the amount of margin compression.

The Company`s average yield on interest-earning assets decreased 55 basis points
while the average rate on interest-bearing liabilities decreased 70 basis points
from the second quarter of 2009. During the second quarter of 2010, the
Company`s average total assets increased by $865.2 million to $3.7 billion, a
30.8% increase over the second quarter of 2009. The increase reflected a $357.3
million increase in average total loans to $2.6 billion from the second quarter
of 2009, the result of the FDIC-assisted acquisition during the first quarter.
The increase in volume of loans at lower current market rates resulted in
average yield on loans falling by 34 basis points compared to the second quarter
of 2009. Average investment securities were $305.5 million at June 30, 2010, or
53.3% higher than the balance at the end of the second quarter of 2009 of $199.3
million, largely reflecting the impact of CBT. The growth in average total
assets was supported by growth in average total deposits of $866.8 million, an
increase of 40.4% from the second quarter of 2009, which mostly came from the
FDIC-assisted acquisition of CBT.

Noninterest Income and Expense

Noninterest income was $11.4 million for the second quarter of 2010 compared to
$7.7 million for the second quarter of 2009, an increase of $3.7 million, or
47.2%. This increase was driven primarily by the addition of CBT noninterest
income of $2.7 million. For legacy SCBT, noninterest income increased in trust
and investment service income 70.6%, or $474,000; bankcard services up 25.6%, or
$331,000; and other service charges, commissions and fees were up 127.0%, or
$497,000. These increases were partially offset by a mortgage banking income
decline of $493,000, or 23.1%, and by a $131,000 increased impairment charge on
pooled trust preferred securities.

Compared to the first quarter of 2010, operating noninterest income, which
excludes securities losses and gain from acquisition, was up by $2.6 million.
Without the addition of CBT, noninterest income would have increased by
approximately $2.1 million for the quarter for legacy SCBT, due primarily to an
increase in service charges on deposit accounts of $546,000; an increase in
mortgage banking income of $473,000; an increase in trust and investment
services income of $414,000; an increase in other service charges, commissions,
and fees of $412,000; and an increase in bankcard services income of $230,000.

Noninterest expense was $29.4 million in the second quarter of 2010, a 39.6% or
$8.3 million increase compared to $21.0 million in the second quarter of 2009.
During the second quarter, the Company had increased cost in most categories of
expense due to the addition of CBT. These costs related to the CBT franchise
accounted for $6.1 million of the increase. Without the addition of CBT and
merger related costs, noninterest expense increased by $2.2 million from second
quarter of 2009 and in the following areas: (1) salaries and benefits by $2.6
million and (2) advertising and marketing by $413,000 and (3) business
development and staff related expenses by $346,000. Partially offsetting the
impact of these increases was reduced cost of FDIC assessments of $1.3 million
in the second quarter of 2009. The Company`s quarterly efficiency ratio
increased to 67.3% compared to 60.9% one year ago, and compared to 24.1% in the
first quarter of 2010. On an adjusted basis, excluding the impact of the gain
from the FDIC assisted transaction, FHLB prepayment fee, and merger-related
cost, the efficiency ratio was 65.1% for the second quarter and 66.1% for the
six months ended June 30, 2010. The decline in the adjusted efficiency ratio
from first quarter of 2010 is reflected in both strong net interest income and
non-interest income growth during the quarter.

SCBT Financial Corporation, Columbia, South Carolina is a registered bank
holding company incorporated under the laws of South Carolina. The Company
consists of SCBT, N.A., the third largest bank headquartered in South Carolina;
NCBT, a Division of SCBT, N.A.; and Community Bank & Trust, a Division of SCBT,
N.A. Providing financial services for over 75 years, SCBT Financial Corporation
operates 75 locations in 17 South Carolina counties, 10 northeast Georgia
counties, and Mecklenburg County in North Carolina. SCBT Financial Corporation
has assets of approximately $3.6 billion and its stock is traded under the
symbol SCBT in the NASDAQ Global Select Market. More information can be found at
www.SCBTonline.com.

Non-GAAP Measures

Statements included in this press release include non-GAAP measures and should
be read along with the accompanying tables which provide a reconciliation of
non-GAAP measures to GAAP measures. Management believes that these non-GAAP
measures provide additional useful information. Non-GAAP measures should not be
considered as an alternative to any measure of performance or financial
condition as promulgated under GAAP, and investors should consider the company's
performance and financial condition as reported under GAAP and all other
relevant information when assessing the performance or financial condition of
the company. Non-GAAP measures have limitations as analytical tools, and
investors should not consider them in isolation or as a substitute for analysis
of the company's results or financial condition as reported under GAAP.

Cautionary Statement Regarding Forward Looking Statements

Statements included in this press release which are not historical in nature are
intended to be, and are hereby identified as, forward looking statements for
purposes of the safe harbor provided by Section 21E of the Securities Exchange
Act of 1934. SCBT Financial Corporation cautions readers that forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from forecasted results. Such risks and
uncertainties, include, among others, the following possibilities: (1) credit
risk associated with an obligor's failure to meet the terms of any contract with
the bank or otherwise fail to perform as agreed; (2) interest risk involving the
effect of a change in interest rates on both the bank's earnings and the market
value of the portfolio equity; (3) liquidity risk affecting the bank's ability
to meet its obligations when they come due; (4) price risk focusing on changes
in market factors that may affect the value of traded instruments in
"mark-to-market" portfolios; (5) transaction risk arising from problems with
service or product delivery; (6) compliance risk involving risk to earnings or
capital resulting from violations of or nonconformance with laws, rules,
regulations, prescribed practices, or ethical standards; (7) strategic risk
resulting from adverse business decisions or improper implementation of business
decisions; (8) reputation risk that adversely affects earnings or capital
arising from negative public opinion; (9) terrorist activities risk that results
in loss of consumer confidence and economic disruptions; (10) economic downturn
risk resulting in deterioration in the credit markets; (11) greater than
expected non-interest expenses; (12) excessive loan losses; (13) potential
deposit attrition, higher than expected costs, customer loss and business
disruption associated with the integration of CBT, including, without
limitation, potential difficulties in maintaining relationships with key
personnel and other integration related-matters; and (14) 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, 2010 - 2009 June 30, 2010 - 2009
EARNINGS SUMMARY (non tax equivalent) 2010 2010 2009 2009 2009 % Change 2010 2009 % Change
Interest income $ 39,112 $ 37,204 $ 34,473 $ 35,020 $ 35,857 9.1 % $ 76,316 $ 72,305 5.5 %
Interest expense 7,952 8,573 7,281 8,639 9,838 -19.2 % 16,525 21,288 -22.4 %
Net interest income 31,160 28,631 27,192 26,381 26,019 19.8 % 59,791 51,017 17.2 %
Provision for loan losses (1) 12,509 20,778 10,158 6,990 4,521 176.7 % 33,287 9,564 248.0 %
Noninterest income 11,421 101,959 5,763 5,591 7,761 47.2 % 113,380 14,892 661.3 %
Noninterest expense 29,377 32,918 20,624 21,797 21,038 39.6 % 62,295 41,225 51.1 %
Income before provision for income taxes 695 76,894 2,173 3,185 8,221 -91.5 % 77,589 15,120 413.2 %
Provision for income taxes 120 27,933 654 1,014 2,836 -95.8 % 28,053 5,215 437.9 %
Net income 575 48,961 1,519 2,171 5,385 -89.3 % 49,536 9,905 400.1 %
Preferred stock dividends -- -- -- -- 450 -100.0 % -- 1,115 -100.0 %
Accretion on preferred stock discount -- -- -- -- 3,410 -100.0 % -- 3,559 -100.0 %
Net income available to common shareholders (GAAP) $ 575 $ 48,961 $ 1,519 $ 2,171 $ 1,525 -62.3 % $ 49,536 $ 5,231 847.0 %

Basic weighted-average common shares 12,612,243 12,590,748 12,572,751 12,546,654 11,826,972 6.6 % 12,599,348 11,515,899 9.4 %
Diluted weighted-average common shares 12,737,572 12,695,655 12,633,484 12,604,762 11,870,522 7.3 % 12,713,337 11,559,702 10.0 %

Earnings per common share - Basic $ 0.05 $ 3.89 $ 0.12 $ 0.17 $ 0.13 -61.5 % $ 3.93 $ 0.45 773.3 %
Earnings per common share - Diluted 0.05 3.86 0.12 0.17 0.13 -61.5 % 3.90 0.45 766.7 %

Cash dividends declared per common share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17 0.0 % $ 0.34 $ 0.34 0.0 %
Dividend payout ratio (2) 4.43 % 142.65 % 99.67 % 141.59 % 52.02 % -91.5 % 8.59 % 47.75 % -82.0 %

Operating Earnings (non-GAAP) (3)
Net income available to common shareholders (GAAP) $ 575 $ 48,961 $ 1,519 $ 2,171 $ 1,525 -62.3 % $ 49,536 $ 5,231 847.0 %
Gain on acquisition, net of tax -- (62,452 ) -- -- -- (62,452 ) --
Other-than-temporary impairment (OTTI), net of tax 559 3,557 1,578 1,502 356 57.1 % 4,116 356 1056.2 %
Merger-related expense, net of tax 798 2,488 -- -- -- 3,286 --
FHLB advances prepayment penalty, net of tax -- 2,031 -- -- -- 2,031 --
Net operating earnings (loss) (non-GAAP) $ 1,932 $ (5,415 ) $ 3,097 $ 3,673 $ 1,881 2.7 % $ (3,483 ) $ 5,587 -162.3 %

Operating earnings (loss) per common share - Basic $ 0.15 $ (0.43 ) $ 0.25 $ 0.29 $ 0.16 -6.3 % $ (0.28 ) $ 0.49 -157.1 %
Operating earnings (loss) per common share - Diluted 0.15 (0.43 ) 0.25 0.29 0.16 -6.3 % (0.27 ) 0.48 -156.3 %

AVERAGE for Quarter Ended Quarter AVERAGE for Six Months YTD
June 30, March 31, December 31, September 30, June 30, 2010 - 2009 June 30, June 30, 2010 - 2009
BALANCE SHEET HIGHLIGHTS 2010 2010 2009 2009 2009 % Change 2010 2009 % Change
Loans held for sale $ 17,373 $ 12,050 $ 19,670 $ 20,763 $ 48,132 -63.9 % $ 14,726 $ 42,340 -65.2 %
Covered loans 427,223 302,602 -- -- -- 365,282 --
Non-covered loans 2,198,417 2,185,241 2,199,074 2,221,078 2,268,292 -3.1 % 2,191,840 2,287,699 -4.2 %
Total loans (1) 2,625,640 2,487,843 2,199,074 2,221,078 2,268,292 15.8 % 2,557,122 2,287,699 11.8 %
FDIC receivable for loss share agreements 273,009 189,091 -- -- -- 231,282 --
Total investment securities 305,536 281,921 215,609 202,692 199,293 53.3 % 293,776 206,531 42.2 %
Intangible assets 73,615 71,313 65,740 65,871 66,002 11.5 % 72,470 66,068 9.7 %
Earning assets 3,131,800 3,019,322 2,549,507 2,617,386 2,587,286 21.0 % 3,075,356 2,614,944 17.6 %
Total assets 3,677,397 3,470,341 2,749,157 2,806,974 2,812,215 30.8 % 3,578,102 2,840,375 26.0 %
Noninterest-bearing deposits 469,980 423,536 346,576 334,165 321,038 46.4 % 446,925 319,019 40.1 %
Interest-bearing deposits 2,544,589 2,312,835 1,757,463 1,820,139 1,826,704 39.3 % 2,429,351 1,846,469 31.6 %
Total deposits 3,014,569 2,736,371 2,104,039 2,154,304 2,147,742 40.4 % 2,876,276 2,165,488 32.8 %
Federal funds purchased and repurchase agreements 229,145 230,256 203,197 229,806 197,636 15.9 % 229,697 200,498 14.6 %
Other borrowings 62,680 146,735 143,786 144,180 149,570 -58.1 % 104,475 157,017 -33.5 %
Shareholders' common equity (excludes preferred stock) 336,424 348,773 284,335 282,953 265,793 26.6 % 336,369 257,656 30.5 %
Shareholders' equity 336,424 348,773 284,335 282,953 298,849 12.6 % 336,369 299,668 12.2 %

ENDING Balance Quarter
June 30, March 31, December 31, September 30, June 30, 2010 - 2009
BALANCE SHEET HIGHLIGHTS 2010 2010 2009 2009 2009 % Change
Loans held for sale $ 22,724 $ 15,925 $ 17,563 $ 20,077 $ 53,853 -57.8 %
Covered loans 413,549 438,807 -- -- --
Non-covered loans 2,227,442 2,175,242 2,203,238 2,209,403 2,236,162 -0.4 %
Total loans (1) 2,640,991 2,614,049 2,203,238 2,209,403 2,236,162 18.1 %
FDIC receivable for loss share agreements 265,890 277,158 -- -- --
Total investment securities 293,917 311,005 211,112 212,228 191,415 53.5 %
Intangible assets 73,468 73,900 65,696 65,827 65,959 11.4 %
Allowance for loan losses (1) (46,167 ) (41,397 ) (37,488 ) (34,297 ) (32,431 ) 42.4 %
Premises and equipment 84,206 72,079 71,829 72,523 73,404 14.7 %
Total assets 3,618,646 3,665,184 2,702,188 2,776,684 2,807,309 28.9 %
Noninterest-bearing deposits 465,594 457,412 346,248 335,565 322,270 44.5 %
Interest-bearing deposits 2,546,273 2,537,702 1,758,391 1,791,554 1,858,096 37.0 %
Total deposits 3,011,867 2,995,114 2,104,639 2,127,119 2,180,366 38.1 %
Federal funds purchased and repurchase agreements 177,281 237,669 162,515 211,606 187,677 -5.5 %
Other borrowings 62,557 62,929 143,624 144,048 144,430 -56.7 %
Total liabilities 3,284,043 3,330,418 2,419,369 2,494,901 2,527,557 29.9 %
Shareholders' common equity (excludes preferred stock) 334,603 334,766 282,819 281,783 279,752 19.6 %
Shareholders' equity 334,603 334,766 282,819 281,783 279,752 19.6 %

Common shares issued and outstanding 12,773,855 12,750,774 12,739,533 12,712,476 12,696,849 0.6 %

SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)

Quarter
June 30, March 31, December 31, September 30, June 30, 2010 - 2009
NONPERFORMING ASSETS (ENDING balance) 2010 2010 2009 2009 2009 % Change
Not Covered Under FDIC Loss Share Agreements
Nonaccrual loans not covered under FDIC loss share agreements
$ 75,313 $ 53,730 $ 49,492 $ 36,605 $ 29,379 156.3%
Other real estate owned ("OREO") not covered under FDIC loss share agreements
9,803 9,319 3,102 4,189 9,165 7.0%
Accruing loans past due 90 days or more 582 107 241 585 559 4.1%
Other nonperforming assets 159 19 31 13 --
Restructured loans -- -- -- 1,974 1,951 -100.0%
Total nonperforming assets not covered under
FDIC loss share agreements 85,857 63,175 52,866 43,366 41,054 109.1%
Covered Under FDIC Loss Share Agreements
Nonaccrual loans covered under FDIC loss share agreements
-- -- -- -- --
OREO covered under FDIC loss share agreements 31,750 32,076 -- -- --
Accruing loans past due 90 days or more covered under FDIC loss share agreements
-- -- -- -- --
Other nonperforming assets 34 -- -- -- --
Total nonperforming assets covered under FDIC loss share agreements
31,750 32,076 -- -- --
Total nonperforming assets $ 117,607 $ 95,251 $ 52,866 $ 43,366 $ 41,054 186.5%

Excluding Covered Assets
Total nonperforming assets as a percentage of total non-covered loans and repossessed assets (1) (4)
3.84% 2.89% 2.40% 1.96% 1.83%
Total nonperforming assets as a percentage of total assets (5)
2.37% 1.72% 1.96% 1.56% 1.46%
NPLs as a percentage of period end non-covered loans 3.41% 2.47% 2.26% 1.68% 1.34%

Including Covered Assets
Total nonperforming assets as a percentage of total loans and repossessed assets (1) (4)
4.38% 3.59% 2.40% 1.96% 1.83%
Total nonperforming assets as a percentage of total assets
3.25% 2.60% 1.96% 1.56% 1.46%
NPLs as a percentage of period end loans 2.87% 2.06% 2.26% 1.68% 1.34%

Quarter Ended Quarter Six Months Ended YTD
June 30, March 31, December 31, September 30, June 30, 2010 - 2009 June 30, June 30, 2010 - 2009
ALLOWANCE FOR LOAN LOSSES (1) (6) 2010 2010 2009 2009 2009 % Change 2010 2009 % Change
Balance at beginning of period $ 41,397 $ 37,488 $ 34,297 $ 32,431 $ 32,094 29.0% $ 37,488 $ 31,525 18.9%
Loans charged off (7,898) (17,110) (6,881) (5,103) (4,295) 83.9% (25,009) (9,074) 175.6%
Overdrafts charged off (275) (260) (277) (271) (230) 19.6% (534) (444) 20.3%
Loan recoveries 346 354 96 195 262 32.1% 700 652 7.4%
Overdraft recoveries 88 147 95 55 79 11.4% 235 208 13.0%
Net charge-offs (7,739) (16,869) (6,967) (5,124) (4,184) 85.0% (24,608) (8,658) 184.2%
Provision for loan losses 12,509 20,778 10,158 6,990 4,521 176.7% 33,287 9,564 248.0%
Balance at end of period $ 46,167 $ 41,397 $ 37,488 $ 34,297 $ 32,431 42.4% $ 46,167 $ 32,431 42.4%

Allowance for loan losses as a percentage of total loans (1)
2.07% 1.90% 1.70% 1.55% 1.45% 2.07% 1.45%
Allowance for loan losses as a percentage of nonperforming loans
60.83% 76.89% 75.38% 92.22% 108.33% 60.83% 108.33%
Net charge-offs as a percentage of average loans (annualized) (1)
1.41% 3.13% 1.26% 0.92% 0.74% 2.26% 0.76%
Provision for loan losses as a percentage of average total loans (annualized) (1)
2.28% 3.86% 1.83% 1.25% 0.80% 3.06% 0.84%

June 30, December 31, June 30,
LOAN PORTFOLIO (ENDING balance) (1) 2010 % of Total 2009 % of Total 2009 % of Total
Loans covered under loss share agreements $ 413,549 15.7% $ -- 0.0% $ -- 0.0%
Loans not covered under loss share agreements:
Commercial non-owner occupied real estate:
Construction and land development 443,758 16.8% 467,284 21.2% 489,730 21.8%
Commercial non-owner occupied 294,804 11.2% 303,650 13.8% 318,909 14.3%
Total commercial non-owner occupied real estate 738,562 28.0% 770,934 35.0% 808,639 36.2%
Consumer real estate:
Consumer owner occupied 304,598 11.5% 284,484 12.9% 289,423 12.9%
Home equity loans 251,951 9.5% 248,639 11.3% 239,250 10.7%
Total consumer real estate 556,549 21.1% 533,123 24.2% 528,673 23.6%
Commercial owner occupied real estate 498,879 18.9% 469,101 21.3% 456,973 20.4%
Commercial and industrial 212,863 8.1% 214,174 9.7% 214,384 9.6%
Other income producing property 126,004 4.8% 137,736 6.3% 136,098 6.1%
Consumer non real estate 63,133 2.4% 68,770 3.1% 79,386 3.6%
Other 31,452 1.2% 9,400 0.4% 12,009 0.5%
Total loans not covered under loss share agreements 2,227,442 84.3% 2,203,238 100.0% 2,236,162 100.0%
Total loans (net of unearned income) (1) $ 2,640,991 100.0% $ 2,203,238 100.0% $ 2,236,162 100.0%

Loans held for sale $ 22,724 $ 17,563 $ 53,853

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,
SELECTED RATIOS 2010 2010 2009 2009 2009 2010 2009

Return on average assets (annualized) 0.06 % 5.72 % 0.22 % 0.31 % 0.77 % 2.79 % 0.70 %

Return on average common equity (annualized) 0.69 % 56.93 % 2.12 % 3.04 % 2.30 % 29.70 % 4.09 %

Return on average common tangible equity (annualized) 1.42 % 71.89 % 2.92 % 4.13 % 3.24 % 38.23 % 5.69 %

Return on average equity (annualized) 0.69 % 56.93 % 2.12 % 3.04 % 7.23 % 29.70 % 6.67 %

Return on average tangible equity (annualized) 1.42 % 71.89 % 2.92 % 4.13 % 9.43 % 38.23 % 8.70 %

Net interest margin (tax equivalent) 4.04 % 3.89 % 4.28 % 4.04 % 4.07 % 3.97 % 3.97 %

Efficiency ratio (tax equivalent) (7) 67.31 % 24.12 % 58.10 % 63.47 % 60.88 % 34.57 % 61.62 %

Book value per common share $ 26.19 $ 26.25 $ 22.20 $ 22.17 $ 22.03

Tangible book value per common share $ 20.44 $ 20.46 $ 17.04 $ 16.99 $ 16.84

Common shares issued and outstanding 12,773,855 12,750,774 12,739,533 12,712,476 12,696,849

Common equity-to-assets 9.25 % 9.13 % 10.47 % 10.15 % 9.97 %

Tangible common equity-to-tangible assets 7.37 % 7.26 % 8.24 % 7.97 % 7.80 %

Equity-to-assets 9.25 % 9.13 % 10.47 % 10.15 % 9.97 %

Tangible equity-to-tangible assets 7.37 % 7.26 % 8.24 % 7.97 % 7.80 %

Quarter Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
RECONCILIATION OF NON-GAAP TO GAAP 2010 2010 2009 2009 2009 2010 2009

Return on Average Common Tangible Equity
Return on average common tangible equity (non-GAAP) 1.42 % 71.89 % 2.92 % 4.13 % 3.24 % 38.23 % 5.69 %
Effect to adjust for tangible assets -0.73 % -14.96 % -0.80 % -1.09 % -0.94 % -8.53 % -1.60 %
Return on average common equity (GAAP) 0.69 % 56.93 % 2.12 % 3.04 % 2.30 % 29.70 % 4.09 %

Return on Average Tangible Equity
Return on average tangible equity (non-GAAP) 1.42 % 71.89 % 2.92 % 4.13 % 9.43 % 38.23 % 8.70 %
Effect to adjust for tangible assets -0.73 % -14.96 % -0.80 % -1.09 % -2.20 % -8.53 % -2.03 %
Return on average equity (GAAP) 0.69 % 56.93 % 2.12 % 3.04 % 7.23 % 29.70 % 6.67 %

Tangible Book Value Per Common Share
Tangible book value per common share (non-GAAP) $ 20.44 $ 20.46 $ 17.04 $ 16.99 $ 16.84
Effect to adjust for tangible assets 5.75 5.80 5.16 5.18 5.19
Book value per common share (GAAP) $ 26.19 $ 26.25 $ 22.20 $ 22.17 $ 22.03

Tangible Common Equity-to-Tangible Assets
Tangible common equity-to-tangible assets (non-GAAP) 7.37 % 7.26 % 8.24 % 7.97 % 7.80 %
Effect to adjust for tangible assets 1.88 % 1.87 % 2.23 % 2.18 % 2.17 %
Common equity-to-assets (GAAP) 9.25 % 9.13 % 10.47 % 10.15 % 9.97 %

Tangible Equity-to-Tangible Assets
Tangible equity-to-tangible assets (non-GAAP) 7.37 % 7.26 % 8.24 % 7.97 % 7.80 %
Effect to adjust for tangible assets 1.88 % 1.87 % 2.23 % 2.18 % 2.17 %
Equity-to-assets (GAAP) 9.25 % 9.13 % 10.47 % 10.15 % 9.97 %

Note: The tangible measures above are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible return on equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not
be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as
reported under GAAP. The sections titled "Reconciliation of Non-GAAP to GAAP" provide tables that reconcile non-GAAP measures to GAAP.

SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)

Three Months Ended
June 30, 2010 June 30, 2009
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 $ 183,251 $ 214 0.47% 71,569 $ 109 0.61%
Investment securities (taxable) 274,942 2,740 4.00% 170,423 2,144 5.05%
Investment securities (tax-exempt) 30,594 164 2.15% 28,870 231 3.21%
Loans held for sale 17,373 198 4.57% 48,132 524 4.37%
Loans (1) 2,625,640 35,796 5.47% 2,268,292 32,849 5.81%
Total interest-earning assets 3,131,800 39,112 5.01% 2,587,286 35,857 5.56%

Noninterest-Earning Assets:
Cash and due from banks 62,681 54,275
Other assets 525,341 202,517
Allowance for loan losses (42,425) (31,863)
Total noninterest-earning assets 545,597 224,929
Total Assets $ 3,677,397 $ 2,812,215

Interest-Bearing Liabilities:
Transaction and money market accounts $ 1,040,574 $ 2,018 0.78% $ 636,881 $ 895 0.56%
Savings deposits 195,979 212 0.43% 156,374 180 0.46%
Certificates and other time deposits 1,308,036 4,847 1.49% 1,033,449 7,113 2.76%
Federal funds purchased and repurchase agreements 229,145 184 0.32% 197,636 118 0.24%
Other borrowings 62,680 691 4.42% 149,570 1,532 4.11%
Total interest-bearing liabilities 2,836,414 7,952 1.12% 2,173,910 9,838 1.82%

Noninterest-Bearing Liabilities:
Demand deposits 469,980 321,038
Other liabilities 34,579 18,418
Total noninterest-bearing liabilities ("Non-IBL") 504,559 339,456
Shareholders' equity 336,424 298,849
Total Non-IBL and shareholders' equity 840,983 638,305
Total liabilities and shareholders' equity $ 3,677,397 $ 2,812,215

Net interest income and margin (NON-TAX EQUIV.) $ 31,160 3.99% $ 26,019 4.03%
Net interest margin (TAX EQUIVALENT) 4.04% 4.07%

Six Months Ended
June 30, 2010 June 30, 2009
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 $ 209,732 $ 466 0.45% $ 78,374 $ 235 0.60%
Investment securities (taxable) 263,147 5,254 4.03% 177,080 4,514 5.14%
Investment securities (tax-exempt) 30,629 429 2.82% 29,451 466 3.19%
Loans held for sale 14,726 319 4.37% 42,340 1,060 5.05%
Loans (1) 2,557,122 69,848 5.51% 2,287,699 66,030 5.82%
Total interest-earning assets 3,075,356 76,316 5.00% 2,614,944 72,305 5.58%

Noninterest-Earning Assets:
Cash and due from banks 65,885 56,979
Other assets 476,601 200,169
Allowance for loan losses (39,740) (31,717)
Total noninterest-earning assets 502,746 225,431
Total Assets $ 3,578,102 $ 2,840,375

Interest-Bearing Liabilities:
Transaction and money market accounts $ 959,523 $ 3,640 0.76% $ 621,819 $ 1,872 0.61%
Savings deposits 191,489 425 0.45% 151,640 370 0.49%
Certificates and other time deposits 1,278,339 10,067 1.59% 1,073,010 15,687 2.95%
Federal funds purchased and repurchase agreements 229,697 349 0.31% 200,498 243 0.24%
Other borrowings 104,475 2,044 3.95% 157,017 3,116 4.00%
Total interest-bearing liabilities 2,763,523 16,525 1.21% 2,203,984 21,288 1.95%

Noninterest-Bearing Liabilities:
Demand deposits 446,925 319,019
Other liabilities 31,285 17,704
Total noninterest-bearing liabilities ("Non-IBL") 478,210 336,723
Shareholders' equity 336,369 299,668
Total Non-IBL and shareholders' equity 814,579 636,391
Total liabilities and shareholders' equity $ 3,578,102 $ 2,840,375

Net interest income and margin (NON-TAX EQUIV.) $ 59,791 3.92% $ 51,017 3.93%
Net interest margin (TAX EQUIVALENT) 3.97% 3.97%

Second
Three Months Ended Quarter Six Months Ended YTD
June 30, March 31, December 31, September 30, June 30, 2010 - 2009 June 30, 2010 - 2009
NONINTEREST INCOME & EXPENSE 2010 2010 2009 2009 2009 % Change 2010 2009 % Change
Noninterest income:
Gain on acquisition $ -- $ 98,081 $ -- $ -- $ -- $ 98,081 $ --
Service charges on deposit accounts 5,582 4,523 4,005 4,089 3,819 46.2% 10,105 7,404 36.5%
Mortgage banking income 1,660 1,182 1,706 1,451 2,134 -22.2% 2,842 3,395 -16.3%
Bankcard services income 2,348 1,799 1,293 1,278 1,290 82.0% 4,147 2,472 67.8%
Trust and investment services income 1,187 784 567 588 671 76.9% 1,971 1,362 44.7%
Securities gains (losses), net (8) (675) (5,586) (2,257) (2,122) (544) 24.1% (6,261) (544) 1050.9%
Other 1,319 1,176 449 307 391 237.3% 2,495 803 210.7%
Total noninterest income $ 11,421 $ 101,959 $ 5,763 $ 5,591 $ 7,761 47.2% $ 113,380 $ 14,892 661.3%

Noninterest expense:
Salaries and employee benefits $ 15,656 $ 14,091 $ 10,102 $ 10,649 $ 9,517 64.5% $ 29,747 $ 20,036 48.5%
Federal Home Loan Bank advances prepayment penalty -- 3,189 -- -- -- 3,189 --
Net occupancy expense 1,907 2,373 1,668 1,582 1,559 22.3% 4,280 3,142 36.2%
Furniture and equipment expense 1,937 1,636 1,483 1,507 1,499 29.2% 3,573 3,059 16.8%
Information services expense 2,157 2,371 1,448 1,381 1,286 67.7% 4,528 2,728 66.0%
FDIC assessment and other regulatory charges 1,227 1,323 976 956 2,333 -47.4% 2,550 3,517 -27.5%
OREO expense and loan related 825 (270) 1,103 2,497 1,367 -39.6% 555 2,041 -72.8%
Advertising and marketing 1,028 587 697 579 571 80.0% 1,615 1,221 32.3%
Business development and staff related 795 807 690 367 449 77.1% 1,602 890 80.0%
Professional fees 616 557 415 376 443 39.1% 1,173 759 54.5%
Amortization of intangibles 432 349 132 131 132 227.3% 781 263 197.0%
Merger-related expense 964 3,908 -- -- -- 4,872 --
Other 1,833 1,997 1,910 1,772 1,882 -2.6% 3,830 3,569 7.3%
Total noninterest expense $ 29,377 $ 32,918 $ 20,624 $ 21,797 $ 21,038 39.6% $ 62,295 $ 41,225 51.1%

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 2010 by the total net income available to common shareholders reported in the first quarter of 2010.
(3) Operating earnings is a non-GAAP measure and excludes the effect of the gain on acquisition, OTTI, merger-related expense and the FHLB advances prepayment penalty. Management believes that non-GAAP operating earnings provides 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. Operating earnings (non-GAAP) excludes the following from net income available to common shareholders (GAAP) on an after-tax basis: (a) pre-tax gain on acquisition of $98.1 million for the quarter ended
March 31, 2010; (b) pre-tax OTTI of $675,000, $5.6 million, $2.2 million, $2.2 million and $544,000 for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively; (c) pre-tax merger-related expense of $964,000 and $3.9 million for the quarter ended June 30, 2010 and March 31, 2010, respectively; and (d) pre-tax FHLB advances prepayment penalty of $3.2 million for the quarter ended March 31, 2010.
(4) Repossessed assets includes OREO and other nonperforming assets.
(5) Calculated by dividing total NPAs not covered under FDIC loss share agreements by total assets.
(6) Allowance for loan losses information excludes covered loans.
(7) The efficiency ratio (tax equivalent) would be 65.10% for June 30, 2010 if adjusted by subtracting merger-related expense of $964,000 from non-interest expense. The efficiency ratio (tax equivalent) would be 67.21% for March 31, 2010 if adjusted by subtracting the $98.1 million gain on acquisition from noninterest income and subtracting the FHLB advances prepayment penalty of $3.2 million and merger-related expense of $3.9 million from noninterest expense. On a YTD basis, the adjusted efficiency ratio
(tax equivalent) is 66.06%.
(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.

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

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