First Financial Holdings, Inc. Reports Record Third Quarter 2013 Operating Income of $18.8 Million

COLUMBIA, S.C.--(BUSINESS WIRE)--

First Financial Holdings, Inc. SCBT today released its unaudited results of operations and other financial information for the three-month and nine-month periods ended September 30, 2013. Highlights of the third quarter 2013 include the following:

Net income of $11.5 million, or $0.52 diluted EPS in 3Q 2013 compared to $12.5 million, or $0.74 diluted EPS in 2Q 2013 and $9.1 million, or $0.60 diluted EPS in 3Q 2012;
Operating earnings of $18.8 million, which exclude merger expense and include preferred stock dividends, or $0.85 diluted EPS in 3Q 2013 compared to $13.1 million, or $0.77 diluted EPS in 2Q 2013 and $9.4 million, or $0.63 diluted EPS in 3Q 2012;
On July 26, 2013, closed the merger transaction between SCBT Financial Corporation and the former First Financial Holding, Inc. (FFCH);
Return on average assets was 0.66% annualized in 3Q 2013 compared to 0.99% in 2Q 2013 and 0.83% in 3Q 2012; Operating return on average assets was 1.07% annualized in 3Q 2013 compared to 1.04% in 2Q 2013 and 0.87% in 3Q 2012;
Net charge-offs of non-acquired loans increased to 0.45% annualized in 3Q2013, compared to 0.40% annualized in 2Q 2013 and decreased from 0.85% annualized in 3Q 2012;
Non-acquired non-performing assets (NPAs): 2.40% of total non-acquired loans and repossessed assets for 3Q 2013 compared to 2.56% for 2Q 2013 and 3.22% for 3Q 2012; and
Legacy loan growth was $75.6 million or 11.3% annualized during 3Q 2013.

Quarterly Cash Dividend

The Board of Directors of First Financial Holdings, Inc. has declared a quarterly cash dividend of $0.19 per share payable on its common stock, and is 11.8% higher than the dividend paid in the third quarter of 2012. This per share amount is the same as the dividend paid in the immediately preceding quarter and will be payable on November 22, 2013 to shareholders of record as of November 15, 2013.

Third 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 $11.5 million, or $0.52 per diluted share for the three months ended September 30, 2013 down from $12.5 million, or $0.74 per diluted share for the three months ended June 30, 2013. Driving this decrease from the second quarter was the following:

a significant increase in noninterest expense (due to merger cost and FFCH operating cost for 66 days of the quarter);
an increase in our effective tax rate from 33.0% to 36.1% driven by certain nondeductible merger related expenses; partially offset by
an increase in noninterest income (FFCH since closing); and
an increase in net interest income (FFCH since closing).

“We are pleased to report record operating earnings in the first quarter of combined operations following a major acquisition,” said Robert R Hill, Jr, CEO of First Financial Holdings, Inc. “Our company experienced solid organic growth and continued to add talented bankers to our team. We are also pleased with the strength of our capital position, the pace of integration, and the opportunities to further improve EPS in the coming quarters. This quarter demonstrates the strength of our recent merger both financially and strategically.”

Asset Quality

During the third quarter of 2013, SCBT continued to see improvement in asset quality with non-acquired nonperforming assets (NPAs) falling to 2.40% of total non-acquired loans and repossessed assets, as non-acquired NPAs declined by $2.5 million, compared to the second quarter of 2013 when the ratio was 2.56%. In addition, classified assets declined by $12.2 million to $111.4 million and 30-89 day past due loans declined by $2.4 million during the third quarter of 2013 as compared to the second quarter of 2013, which excludes any of the acquisitions.

At September 30, 2013, the allowance for non-acquired loan losses was $36.1 million or 1.32% of non-acquired period-end loans. The current allowance for loan losses provides 0.73 times coverage of period-end non-acquired nonperforming loans, which was equal to the same result at the end of the second quarter of 2013. Net charge-offs within the non-acquired portfolio were $3.0 million for the quarter or 0.45% annualized, up slightly from the second quarter of 2013 of $2.6 million or 0.40% annualized and down from the third quarter of 2012 of $5.3 million or 0.85% annualized. OREO costs increased to $3.5 million during the quarter, up from the second quarter amount of $2.8 million. This increase was the result of additional cost related to the 90 properties of OREO added from the FFCH merger. During the quarter, there were two properties with write-downs totaling $738,000 of the total write downs of $1.2 million. An additional 20 properties had write downs totaling $443,000.

Net Interest Income and Margin

Non-taxable equivalent net interest income was $79.7 million for the third quarter of 2013, a $24.4 million increase from the second quarter, resulting from the following:

Interest income increased by approximately $26.2 million primarily from the addition of FFCH's average interest-earning assets of approximately $1.7 billion;
Offset by additional funding cost of $1.8 million, for deposits and other borrowings acquired in the FFCH merger. Interest-bearing liabilities increased by approximately $1.5 billion;

Tax-equivalent net interest margin increased 8 basis points from the third quarter of 2012 and 10 basis point from the second quarter of 2013 to 5.11%. The Company's average yield on interest-earning assets increased 18 basis points while the average rate on interest-bearing liabilities increased 6 basis points from the second quarter of 2013. During the third quarter of 2013, the Company's average total assets increased to approximately $7.2 billion and average earning assets increased to $6.3 billion. The growth in average earning assets was supported by growth in average interest-bearing liabilities of more than $1.5 billion.

Noninterest Income and Expense

Noninterest income was $15.3 million in the third quarter of 2013, up $6.8 million from the second quarter of 2013 and up $6.1 million from third quarter of 2012. Customer-oriented noninterest income (includes service charges, bankcard services, and trust and investment services) saw a significant $6.5 million increase due to the merger with FFCH during the quarter. The increases were partially offset by lower mortgage banking income due to the decline in the mortgage pipeline and reduced gains from loans sold in the secondary market, and a decline in the fair value of the hedges related to mortgage banking activity. In addition the negative accretion on the FDIC indemnification asset in the third quarter was $7.6 million, $315,000 more than the second quarter of 2013 and $1.0 million more than the third quarter of 2012. The increases in negative accretion were the result of the reduction of expected cash flows from the indemnification asset related to certain pools of acquired loans which had improved estimated cash flows. Other noninterest income increased from the second quarter of 2013 by $1.1 million, due primarily to an increase in recoveries from acquired assets and from the contribution related to the FFCH merger (including increases in cash surrender value of bank owned life insurance, rental income, and credit card fees).

Noninterest expense was $75.4 million in the third quarter of 2013, up from $30.5 million from the second quarter. This increase from the second quarter of 2013 was primarily due to $18.7 million of operational cost from the FFCH merger, $9.5 million in merger-related expense, and $2.4 million increase in salaries and employee benefits. The efficiency ratio for the quarter was 78.7%, up from 69.5% in the second quarter. Our operational efficiency ratio, which excludes merger expenses and OREO related expenses, was 64.3% compared to 63.8% in the second quarter.

FFCH Merger

On July 26, 2013, SCBT Financial Corporation acquired First Financial Holdings, Inc. and changed its name to First Financial Holdings, Inc. Below is a summary:

The total purchase price paid was $447.0 million. 7,018,274 common shares of SCBT were issued at a price of $54.34 per share and SCBT assumed the preferred stock outstanding of $65.0 million.
These shares were outstanding approximately 71.7% of the days in the quarter and increased the weighted average shares outstanding by approximately 5.1 million shares.
Total goodwill has been preliminarily determined to be $217.9 million, and other amortizing intangibles totaled $40.8 million.
Total fair value of assets acquired equaled $3.086 billion and total fair value of liabilities assumed equaled $2.857 billion.
At closing, all Federal Home Loan Bank (FHLB) advances assumed and totaling $255.9 million, which included a $21.8 million prepayment fee and unpaid interest of $1.1 million, were repaid to the FHLB. The prepayment fee was treated as a fair value adjustment in the acquisition of FFCH.
During the quarter, more than $175.3 million in securities were sold that were acquired from FFCH. These included Private Label CMOs, Agency MBS, Municipal Bonds, and Trust Preferred CDOs. No gain or loss was recorded on the disposition of these securities.

Balance Sheet and Capital

At the end of the third quarter of 2013, SCBT's total assets were $8.0 billion, up from $5.0 billion at June 30, 2013, related primarily to the acquisition of FFCH. Since September 30, 2012, the company's balance sheet has grown by more than $3.7 billion, or 85.6%, due primarily to the fourth quarter 2012 closing of the Savannah acquisition and the current quarter acquisition of FFCH. The asset growth was spread among all asset categories, except FDIC receivable from loss share agreements and loans held for sale. The asset growth was supported primarily by $1.749 billion increase in core deposit growth, $46.5 million in increased trust preferred borrowings, and $446.4 million in additional capital from the acquisition of FFCH.

Book value per share increased to $40.31 compared to $30.33 at June 30, 2013, while tangible common equity per share declined to $21.76 from $23.09 at June 30, 2013. The increase in book value was the result of the merger with FFCH and the closing price of $54.34 per share. The decline in tangible common equity per share was the result of the fair value adjustments recorded for assets and liabilities in the acquisition of FFCH. In addition, tangible common equity to tangible assets equaled 6.85% at third quarter end down from 7.99% at the end of the second quarter.

The company's Tier 1 leverage ratio is estimated to increase from 9.2% to slightly more than 10.0% at September 30, 2013. This is the result of an increased capital base relative to the average asset base from FFCH being included for approximately 70% of the quarter. The Company's capital position remains “well-capitalized” by all measures at September 30, 2013.

“We are very pleased with the combination of SCBT and FFCH, and the actions taken during the quarter to reposition our balance sheet. Paying off FHLB advances, rebalancing the investment securities portfolio, continuing to reduce certificate of deposit balances, and establishing a $30.0 million line of credit at the bank holding company, which closed on Monday, positions our balance sheet for the future,” said John C. Pollok, COO and CFO. “Our loan portfolio continues to improve as our exposure declines in certain risky assets, as evident by the continued decline in commercial real estate lending and in classified assets.”

SCBT Financial Corporation will hold a conference call on October 29^th at 11 a.m. ET during which management will review earnings and performance trends. Callers wishing to participate may call toll-free by dialing 877-317-6016. The number for international participants is 412-317-6016. The conference ID number is 10034564. Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com. A replay will be available beginning October 29^th by 2:00 p.m. ET until 9:00 a.m. on November 15th. To listen to the replay, dial 877-344-7529 or 412-317-0088. The pass code is 10034564.

First Financial Holdings, Inc., (SCBT) 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, Community Bank & Trust, The Savannah Bank, and First Federal. The Bank also operates Minis & Co., Inc. and First Southeast 401k Fiduciaries, both wholly owned registered investment advisors; and First Southeast Investor Services, a wholly owned broker dealer. Providing financial services for over 79 years, First Financial Holdings, Inc. operates 146 locations in 19 South Carolina counties, 12 Georgia counties, and 4 North Carolina counties. First Financial Holdings, Inc. has assets of approximately $8.0 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 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 anticipated results. Such risks and uncertainties, include, among others, the following possibilities: (1) the outcome of any legal proceedings instituted against the Company; (2) credit risks associated with an obligor's failure to meet the terms of any contract with the bank or otherwise fail to perform as agreed under the terms of any loan-related document; (3) interest risk involving the effect of a change in interest rates on the bank's earnings, the market value of the bank's loan and securities portfolios, and the market value of the Company's equity; (4) liquidity risk affecting the bank's ability to meet its obligations when they come due; (5) risks associated with an anticipated increase in the Company's investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities the Company desires to acquire are not available on terms acceptable to the Company; (6) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (7) transaction risk arising from problems with service or product delivery; (8) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (9) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, increased capital requirements (including, without limitation, the impact of the capital rules adopted to implement Basel III), Consumer Financial Protection Bureau rules and regulations, and potential changes in accounting principles relating to loan loss recognition; (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 potentially resulting in deterioration in the credit markets, greater than expected non-interest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential negative economic developments resulting from federal spending cuts and/or one or more federal budget-related impasses or actions; (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, without limitation, mergers with The Savannah Bancorp, Inc. (“Savannah”) and First Financial Holdings, Inc. (“FFCH”), within the expected time frame; (18) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with merger and acquisition integration, including, without limitation, with respect to Savannah and FFCH, and 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, the Company's performance and other factors; and (21) other risks and uncertainties disclosed in the Company's most recent Annual Report on Form 10-K filed with the SEC or disclosed in documents filed or furnished by the Company with or to the SEC after the filing of such Annual report on Form 10-K, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward looking statements. The Company undertakes no obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise.






SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)

																Third
	Three Months Ended															Quarter		Nine Months Ended						YTD
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012		September 30,						2013 - 2012
EARNINGS SUMMARY (non tax equivalent)	2013			2013			2013			2012			2012			% Change		2013			2012			% Change
Interest income	$	83,700		$	57,530		$	56,169		$	50,263		$	49,535		69.0	%	$	197,399		$	137,225		43.9	%
Interest expense		4,029			2,246			2,368			2,351			2,625		53.5	%		8,643			8,743		-1.1	%
Net interest income		79,671			55,284			53,801			47,912			46,910		69.8	%		188,756			128,482		46.9	%
Provision for loan losses (1)		659			179			1,060			2,211			4,044		-83.7	%		1,898			11,408		-83.4	%
Noninterest income		15,265			8,485			9,523			10,900			9,166		66.5	%		33,273			30,383		9.5	%
Noninterest expense		75,419			44,885			46,441			48,139			38,031		98.3	%		166,745			110,760		50.5	%
Income before provision for income taxes		18,858			18,705			15,823			8,462			14,001		34.7	%		53,386			36,697		45.5	%
Provision for income taxes		6,804			6,173			5,174			2,552			4,938		37.8	%		18,151			12,576		44.3	%
Net income		12,054			12,532			10,649			5,910			9,063		33.0	%		35,235			24,121		46.1	%
Preferred stock dividends		542			--			--			--			--					542			--
Net income available to common shareholders (GAAP)	$	11,512		$	12,532		$	10,649		$	5,910		$	9,063		27.0	%	$	34,693		$	24,121		43.8	%

Effective tax rate		36.08	%		33.00	%		32.70	%		30.16	%		35.27	%				34.00	%		34.27	%

Basic weighted-average common shares		21,893,528			16,790,167			16,787,487			15,320,472			14,920,423		46.7	%		18,517,610			14,484,214		27.8	%
Diluted weighted-average common shares		22,127,979			16,989,818			16,954,039			15,446,778			15,043,067		47.1	%		18,717,181			14,573,097		28.4	%

Earnings per common share - Basic	$	0.53		$	0.75		$	0.63		$	0.39		$	0.61		-13.1	%	$	1.87		$	1.67		12.0	%
Earnings per common share - Diluted		0.52			0.74			0.63			0.38			0.60		-13.3	%		1.85			1.66		11.4	%

Cash dividends declared per common share	$	0.19		$	0.18		$	0.18		$	0.18		$	0.17		11.8	%	$	0.55		$	0.51		7.8	%
Dividend payout ratio (2)		39.71	%		24.46	%		28.75	%		46.06	%		28.33	%	40.2	%		30.84	%		31.18	%	-1.1	%

Operating Earnings (non-GAAP) (3)
Net income (GAAP)	$	12,054		$	12,532		$	10,649		$	5,910		$	9,063		33.0	%	$	35,235		$	24,121		46.1	%
Securities (gains) losses, net of tax		--			--			--			(89	)		--					--			--
Merger and conversion related expense, net of tax		7,326			576			1,321			5,274			357		1954.1	%		9,224			1,744
Net operating earnings (loss) (non-GAAP)		19,380			13,108			11,970			11,095			9,420		105.7	%		44,459			25,865		71.9	%
Preferred stock dividends		542			--			--			--			--					542			--
Net operating earnings (loss) available to common shareholders (non-GAAP)	$	18,838		$	13,108		$	11,970		$	11,095		$	9,420		100.0	%	$	43,917		$	25,865		69.8	%

Operating earnings (loss) per common share - Basic	$	0.86		$	0.78		$	0.71		$	0.72		$	0.63		36.5	%	$	2.37		$	1.79		32.4	%
Operating earnings (loss) per common share - Diluted		0.85			0.77			0.71			0.72			0.63		34.9	%		2.35			1.77		32.8	%



																Third
	AVERAGE for Quarter Ended															Quarter		AVERAGE for Nine Months						YTD
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012		September 30,			September 30,			2013 - 2012
BALANCE SHEET HIGHLIGHTS	2013			2013			2013			2012			2012			% Change		2013			2012			% Change
Loans held for sale	$	53,204		$	40,040		$	51,216		$	60,183		$	56,300		-5.5	%	$	48,161		$	40,052		20.2	%
Acquired loans, net of allowance for acquired loan losses		2,427,583			927,520			997,010			582,726			501,214		384.3	%		1,457,036			447,851		225.3	%
Non-acquired loans		2,698,580			2,629,897			2,576,545			2,528,753			2,497,478		8.1	%		2,634,362			2,469,977		6.7	%
Total loans (1)		5,126,163			3,557,417			3,573,555			3,111,479			2,998,692		70.9	%		4,091,398			2,917,828		40.2	%
FDIC receivable for loss share agreements		116,849			114,724			139,172			162,580			194,116		-39.8	%		123,500			219,858		-43.8	%
Total investment securities		656,658			527,926			553,214			510,434			501,817		30.9	%		579,646			431,799		34.2	%
Intangible assets		308,730			123,881			125,257			87,372			79,708		287.3	%		186,628			77,621		140.4	%
Earning assets		6,254,128			4,496,341			4,489,187			3,972,280			3,766,889		66.0	%		5,086,351			3,614,606		40.7	%
Total assets		7,214,418			5,069,993			5,117,003			4,517,076			4,331,436		66.6	%		5,808,156			4,195,406		38.4	%
Noninterest-bearing deposits		1,359,137			1,023,668			969,400			886,240			813,394		67.1	%		1,115,407			770,059		44.8	%
Interest-bearing deposits		4,626,023			3,150,909			3,236,610			2,853,253			2,800,446		65.2	%		3,679,676			2,726,912		34.9	%
Total deposits		5,985,160			4,174,577			4,206,010			3,739,493			3,613,840		65.6	%		4,795,083			3,496,971		37.1	%
Federal funds purchased and repurchase agreements		251,551			297,025			319,602			247,970			223,844		12.4	%		289,143			222,877		29.7	%
Other borrowings		93,849			54,461			54,713			47,555			45,908		104.4	%		67,818			46,196		46.8	%
Shareholders' common equity (excludes preferred stock)		790,554			517,141			511,392			450,446			429,183		84.2	%		607,385			409,576		48.3	%
Shareholders' equity		837,185			517,141			511,392			450,446			429,183		95.1	%		623,099			409,576		52.1	%







SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)

																Third
	ENDING Balance															Quarter
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012
BALANCE SHEET HIGHLIGHTS	2013			2013			2013			2012			2012			% Change
Loans held for sale	$	52,467		$	47,980		$	50,449		$	65,279		$	71,585		-26.7	%
Acquired loans		3,013,103			921,840			995,255			1,074,742			520,991		478.3	%
Non-acquired loans		2,741,242			2,665,595			2,604,298			2,571,003			2,517,352		8.9	%
Total loans (1)		5,754,345			3,587,435			3,599,553			3,645,745			3,038,343		89.4	%
FDIC receivable for loss share agreements		115,773			104,048			124,340			146,171			174,321		-33.6	%
Total investment securities		652,610			531,579			533,255			560,091			500,587		30.4	%
Intangible assets		381,375			123,352			124,668			125,801			79,391		380.4	%
Allowance for acquired loan losses		(31,141	)		(31,597	)		(31,277	)		(32,132	)		(31,138	)	0.0	%
Allowance for non-acquired loan losses (1)		(36,145	)		(38,625	)		(41,669	)		(44,378	)		(46,439	)	-22.2	%
Premises and equipment		184,959			109,794			110,792			115,583			105,579		75.2	%
Total assets		8,028,441			5,043,078			5,141,929			5,136,446			4,325,232		85.6	%
Noninterest-bearing deposits		1,481,791			1,046,537			1,002,662			981,963			818,633		81.0	%
Interest-bearing deposits		5,181,315			3,136,432			3,216,694			3,316,397			2,770,665		87.0	%
Total deposits		6,663,106			4,182,969			4,219,356			4,298,360			3,589,298		85.6	%
Federal funds purchased and repurchase agreements		233,792			262,447			328,701			238,621			226,330		3.3	%
Other borrowings		101,347			54,372			54,638			54,897			45,807		121.2	%
Total liabilities		7,058,415			4,526,486			4,627,718			4,628,897			3,891,308		81.4	%
Shareholders' common equity (excludes preferred stock)		905,026			516,592			514,211			507,549			433,924		108.6	%
Shareholders' equity		970,026			516,592			514,211			507,549			433,924		123.5	%

Common shares issued and outstanding		24,066,545			17,032,061			17,017,904			16,937,464			15,114,185		59.2	%



																Third
	ENDING Balance															Quarter
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012
NONPERFORMING ASSETS (ENDING BALANCE) (7)	2013			2013			2013			2012			2012			% Change
Non-acquired
Non-acquired nonaccrual loans	$	38,631		$	40,854		$	42,945		$	48,387		$	46,295		-16.6	%
Restructured loans		10,837			11,689			13,636			13,151			12,882		-15.9	%
Non-acquired other real estate owned ("OREO")		16,555			15,950			19,680			19,069			22,424		-26.2	%
Accruing loans past due 90 days or more		122			198			121			500			156		-21.8	%
Other nonperforming assets		--			--			--			--			--
Total non-acquired nonperforming assets		66,145			68,691			76,382			81,107			81,757		-19.1	%
ASC Topic 310-20 Acquired Loans
Acquired nonaccrual loans		--			--			--			--			--
Acquired accruing loans past due 90 days or more		--			--			--			--			--
Total ASC Topic 310-20 acquired loans		--			--			--			--			--
Acquired OREO and other nonperforming assets
OREO covered under FDIC loss share agreements		40,543			35,142			34,244			34,257			47,063		-13.9	%
OREO not covered under FDIC loss share agreements		18,775			17,536			16,766			13,179			5,059		271.1	%
Other nonperforming assets		718			-			26			44			57
Total acquired Acquired OREO and other nonperforming assets		60,036			52,678			51,036			47,480			52,179		15.1	%
Total acquired nonperforming assets		60,036			52,678			51,036			47,480			52,179		15.1	%
Total nonperforming assets	$	126,181		$	121,369		$	127,418		$	128,587		$	133,936		-5.8	%

Excluding Acquired Assets
NPLs as a percentage of period end non-acquired loans		1.81	%		1.98	%		2.18	%		2.41	%		2.36	%
Total nonperforming assets as a percentage of total non-acquired loans and repossessed assets (1)(4)		2.40	%		2.56	%		2.91	%		3.13	%		3.22	%
Total nonperforming assets as a percentage of total assets (5)		0.82	%		1.36	%		1.49	%		1.58	%		1.89	%
Including ASC Topic 310-20 Acquired Loans and Acquired OREO
NPLs as a percentage of period end loans		1.81	%		1.98	%		2.18	%		2.41	%		2.36	%
Total nonperforming assets as a percentage of total loans and repossessed assets (1)(4)		3.08	%		3.19	%		3.53	%		3.62	%		3.41	%
Total nonperforming assets as a percentage of total assets		1.07	%		1.71	%		1.81	%		1.84	%		2.01	%
Including All Acquired Assets
NPLs as a percentage of period end loans		0.86	%		1.47	%		1.58	%		1.70	%		1.95	%
Total nonperforming assets as a percentage of total loans and repossessed assets (1)(4)		2.16	%		3.32	%		3.47	%		3.46	%		4.31	%
Total nonperforming assets as a percentage of total assets		1.57	%		2.41	%		2.48	%		2.50	%		3.10	%







SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)

																Third
	ENDING Balance															Quarter
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012
OTHER ASSET QUALITY INFORMATION	2013			2013			2013			2012			2012			% Change
Classified Assets (Ending Balance) (11)
Classified loans	$	94,820		$	107,671		$	121,222		$	124,133		$	135,095		-29.8	%
OREO and other nonperforming assets		16,555			15,950			19,680			19,069			22,424		-26.2	%
Total classified assets	$	111,375		$	123,621		$	140,902		$	143,202		$	157,519		-29.3	%

Tier 1 capital and non-acquired allowance for loan losses	$	725,471		$	494,562		$	484,744		$	477,686		$	444,200		63.3	%
Classified assets as a percentage of Tier 1 capital and non-acquired allowance for loan losses		15.35	%		25.00	%		29.07	%		29.98	%		35.46	%

Non-acquired Loans 30-89 Day Past Due	$	8,543		$	10,957		$	7,199		$	7,189		$	9,270		-7.8	%


																Third
	Quarter Ended															Quarter		Nine Months Ended						YTD
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012		September 30,			September 30,			2013 - 2012
ALLOWANCE FOR LOAN LOSSES (1)	2013			2013			2013			2012			2012			% Change		2013			2012			% Change
Non-acquired Loans:
Balance at beginning of period	$	38,625		$	41,669		$	44,378		$	46,439		$	47,269		-18.3	%	$	44,378		$	49,367		-10.1	%
Loans charged off		(3,815	)		(2,827	)		(4,148	)		(4,291	)		(5,506	)	-30.7	%		(10,790	)		(15,965	)	-32.4	%
Overdrafts charged off		(479	)		(393	)		(459	)		(446	)		(434	)	10.4	%		(1,331	)		(1,228	)	8.4	%
Loan recoveries		1,095			436			826			550			481		127.7	%		2,357			2,605		-9.5	%
Overdraft recoveries		154			140			219			131			129		19.4	%		513			470		9.1	%
Net charge-offs		(3,045	)		(2,644	)		(3,562	)		(4,056	)		(5,330	)	-42.9	%		(9,251	)		(14,118	)	-34.5	%
Provision for loan losses on non-acquired loans		565			(400	)		853			1,995			4,500		-87.4	%		1,018			11,190		-90.9	%
Balance at end of period, non-acquired loans		36,145			38,625			41,669			44,378			46,439		-22.2	%		36,145			46,439		-22.2	%
ASC Topic 310-30 acquired Loans:
Balance at beginning of period		31,597			31,277			32,132			31,138			35,812					32,132			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		(456	)		320			(855	)		994			(4,674	)				(991	)		(482	)
Benefit attributable to FDIC loss share agreements		550			259			1,062			(778	)		4,218					1,871			700
Net provision for loan losses on acquired loans		94			579			207			216			(456	)				880			218
Provision for loan losses recorded through the FDIC loss share receivable		(550	)		(259	)		(1,062	)		778			(4,218	)				(1,871	)		(700	)
Balance at end of period, ASC Topic 310-30 acquired loans		31,141			31,597			31,277			32,132			31,138					31,141			31,138
Balance at end of period, total allowance for loan losses	$	67,286		$	70,222		$	72,946		$	76,510		$	77,577		-13.3	%	$	67,286		$	77,577		-13.3	%

Total provision for loan losses charged to operations	$	659		$	179		$	1,060		$	2,211		$	4,044				$	1,898		$	11,408
Allowance for non-acquired loan losses as a percentage of non-acquired loans (1)		1.32	%		1.45	%		1.60	%		1.73	%		1.84	%				1.32	%		1.84	%
Allowance for loan losses as a percentage of total loans (1)		1.17	%		1.96	%		2.03	%		2.10	%		2.55	%				1.17	%		2.55	%
Allowance for non-acquired loan losses as a percentage of non-acquired nonperforming loans		72.89	%		73.23	%		73.49	%		71.53	%		78.27	%				72.89	%		78.27	%
Net charge-offs on non-acquired loans as a percentage of average non-acquired loans (annualized) (1)		0.45	%		0.40	%		0.56	%		0.64	%		0.85	%				0.47	%		0.76	%







SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)
																Third
	ENDING Balance															Quarter
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012
LOAN PORTFOLIO (ENDING balance) (1)	2013			2013			2013			2012			2012			% Change
Acquired loans		3,013,103			921,840			995,255			1,074,742			520,991		478.3	%
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development		288,199			285,370			273,488			273,420			273,606		5.3	%
Commercial non-owner occupied		282,678			298,769			298,707			290,071			278,935		1.3	%
Total commercial non-owner occupied real estate		570,877			584,139			572,195			563,491			552,541		3.3	%
Consumer real estate:
Consumer owner occupied		498,734			460,434			443,134			434,503			430,825		15.8	%
Home equity loans		255,291			250,988			249,356			255,284			255,677		-0.2	%
Total consumer real estate		754,025			711,422			692,490			689,787			686,502		9.8	%
Commercial owner occupied real estate		814,259			802,125			796,139			784,152			787,623		3.4	%
Commercial and industrial		301,845			294,580			291,308			279,763			245,285		23.1	%
Other income producing property		140,024			136,957			131,776			133,713			131,832		6.2	%
Consumer non real estate		116,312			104,239			93,997			86,934			86,729		34.1	%
Other		43,900			32,133			26,393			33,163			26,840		63.6	%
Total non-acquired loans		2,741,242			2,665,595			2,604,298			2,571,003			2,517,352		8.9	%
Total loans (net of unearned income) (1)	$	5,754,345		$	3,587,435		$	3,599,553		$	3,645,745		$	3,038,343		89.4	%

Loans held for sale	$	52,467		$	47,980		$	50,449		$	65,279		$	71,585		-26.7	%


	Quarter Ended																	Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,					September 30,		September 30,
SELECTED RATIOS	2013			2013			2013			2012			2012					2013		2012

Return on average assets (annualized)		0.66	%		0.99	%		0.84	%		0.52	%		0.83	%			0.81	%	0.77	%

Operating return on average assets (annualized) (non-GAAP) (3)		1.07	%		1.04	%		0.95	%		0.98	%		0.87	%			1.02	%	0.82	%

Return on average common equity (annualized)		5.78	%		9.72	%		8.45	%		5.22	%		8.40	%			7.64	%	7.87	%

Return on average equity (annualized)		5.71	%		9.72	%		8.45	%		5.22	%		8.40	%			7.56	%	7.87	%

Operating return on average common equity (annualized) (non-GAAP) (3)		9.45	%		10.17	%		9.49	%		9.80	%		8.73	%			9.67	%	8.44	%

Operating return on average equity (annualized) (non-GAAP) (3)		9.18	%		10.17	%		9.49	%		9.80	%		8.73	%			9.54	%	8.44	%

Return on average common tangible equity (annualized) (non-GAAP) (10)		10.39	%		13.48	%		11.92	%		6.91	%		10.74	%			11.82	%	10.13	%

Operating return on average tangible common equity (annualized) (non-GAAP) (10)		16.43	%		14.07	%		13.30	%		12.59	%		11.26	%			14.75	%	10.83	%

Return on average tangible equity (annualized) (non-GAAP) (10)		9.88	%		13.48	%		11.92	%		6.91	%		10.74	%			11.56	%	10.13	%

Net interest margin (tax equivalent)		5.11	%		5.01	%		4.94	%		4.88	%		5.03	%			5.03	%	4.79	%

Efficiency ratio (tax equivalent)		78.74	%		69.49	%		72.37	%		80.95	%		66.91	%			74.26	%	68.95	%

Operating efficiency ratio excluding OREO expense		64.27	%		63.79	%		64.47	%		62.84	%		58.96	%			64.19	%	61.83	%

Book value per common share	$	40.31		$	30.33		$	30.22		$	29.97		$	28.71

Tangible common equity per common share (non-GAAP) (10)	$	21.76		$	23.09		$	22.89		$	22.54		$	23.46

Common shares issued and outstanding		24,066,545			17,032,061			17,017,904			16,937,464			15,114,185

Common equity-to-assets		11.27	%		10.24	%		10.00	%		9.88	%		10.03	%

Equity-to-assets		12.08	%		10.24	%		10.00	%		9.88	%		10.03	%

Tangible common equity-to-tangible assets (non-GAAP) (10)		6.85	%		7.99	%		7.76	%		7.62	%		8.35	%

Tangible equity-to-tangible assets (non-GAAP) (10)		7.70	%		7.99	%		7.76	%		7.62	%		8.35	%

Tier 1 leverage (9)		10.0	%		9.2	%		8.8	%		9.8	%		9.3	%







SCBT Financial Corporation
(Unaudited)
(Dollars in thousands, except per share data)

	Quarter Ended																	Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,					September 30,			September 30,
RECONCILIATION OF NON-GAAP TO GAAP	2013			2013			2013			2012			2012					2013			2012

Pre-tax, Pre-provision Operating Earnings (6)
Net income (GAAP)	$	12,054		$	12,532		$	10,649		$	5,910		$	9,063		33.0	%	$	35,235		$	24,121		46.1	%
Provision for loan losses (1)		659			179			1,060			2,211			4,044		-83.7	%		1,898			11,408		-83.4	%
Provision for income taxes		6,804			6,173			5,174			2,552			4,938		37.8	%		18,151			12,576		44.3	%
Pre-tax, pre-provision income		19,517			18,884			16,883			10,673			18,045		8.2	%		55,284			48,105		14.9	%
Securities gains		--			--			--			(128	)		--					--			(61	)
Merger and conversion related expense		10,397			860			1,963			7,552			568					13,220			2,662
Pre-tax, pre-provision operating earnings (non-GAAP)	$	29,914		$	19,744		$	18,846		$	18,097		$	18,613		60.7	%	$	68,504		$	50,706		35.1	%

Operating Return of Average Assets (3)
Operating return on average assets (non-GAAP)		1.07	%		1.04	%		0.95	%		0.98	%		0.87	%				1.02	%		0.82	%
Effect to adjust for securities gains (losses)		0.00	%		0.00	%		0.00	%		0.01	%		0.00	%				0.00	%		0.00	%
Effect to adjust for merger and conversion related expenses		-0.41	%		-0.05	%		-0.11	%		-0.47	%		-0.04	%				-0.21	%		-0.05	%
Return on average assets (GAAP)		0.66	%		0.99	%		0.84	%		0.52	%		0.83	%				0.81	%		0.77	%

Operating Return of Average Common Equity (3)
Operating return on average equity (non-GAAP)		9.45	%		10.17	%		9.49	%		9.80	%		8.73	%				9.67	%		8.44	%
Effect to adjust for securities gains (losses)		0.00	%		0.00	%		0.00	%		0.08	%		0.00	%				0.00	%		0.00	%
Effect to adjust for merger and conversion related expenses		-3.67	%		-0.45	%		-1.04	%		-4.66	%		-0.33	%				-2.03	%		-0.57	%
Return on average common equity (GAAP)		5.78	%		9.72	%		8.45	%		5.22	%		8.40	%				7.64	%		7.87	%

Operating Return of Average Equity (3)
Operating return on average equity (non-GAAP)		9.18	%		10.17	%		9.49	%		9.80	%		8.73	%				9.54	%		8.44	%
Effect to adjust for securities gains (losses)		0.00	%		0.00	%		0.00	%		0.08	%		0.00	%				0.00	%		0.00	%
Effect to adjust for merger and conversion related expenses		-3.47	%		-0.45	%		-1.04	%		-4.66	%		-0.33	%				-1.98	%		-0.57	%
Return on average equity (GAAP)		5.71	%		9.72	%		8.45	%		5.22	%		8.40	%				7.56	%		7.87	%

Return on Average Common Tangible Equity
Return on average common tangible equity (non-GAAP)		10.39	%		13.48	%		11.92	%		6.91	%		10.74	%				11.82	%		10.13	%
Effect to adjust for tangible assets		-4.61	%		-3.76	%		-3.47	%		-1.69	%		-2.34	%				-4.18	%		-2.26	%
Return on average common equity (GAAP)		5.78	%		9.72	%		8.45	%		5.22	%		8.40	%				7.64	%		7.87	%

Operating Return on Average Common Tangible Equity
Operating return on average common tangible equity (non-GAAP)		16.43	%		14.07	%		13.30	%		12.59	%		11.26	%				14.75	%		10.83	%
Effect to adjust for securities gains (losses)		0.00	%		0.00	%		0.00	%		0.08	%		0.00	%				0.00	%		0.00	%
Effect to adjust for merger and conversion related expenses		-3.68	%		-0.45	%		-1.05	%		-4.66	%		-0.33	%				-2.03	%		-0.57	%
Effect to adjust for tangible assets		-6.97	%		-3.90	%		-3.80	%		-2.79	%		-2.53	%				-5.08	%		-2.39	%
Return on average common equity (GAAP)		5.78	%		9.72	%		8.45	%		5.22	%		8.40	%				7.64	%		7.87	%

Return on Average Tangible Equity (10)
Return on average tangible equity (non-GAAP)		9.88	%		13.48	%		11.92	%		6.91	%		10.74	%				11.56	%		10.13	%
Effect to adjust for intangible assets		-4.17	%		-3.76	%		-3.47	%		-1.69	%		-2.34	%				-4.00	%		-2.26	%
Return on average equity (GAAP)		5.71	%		9.72	%		8.45	%		5.22	%		8.40	%				7.56	%		7.87	%

Operating efficiency ratio excluding OREO expense
Operating efficiency ratio excluding OREO expense		64.27	%		63.79	%		64.47	%		62.84	%		58.96	%				64.19	%		61.83	%
Effect to adjust for OREO and loan related expense		3.68	%		4.37	%		4.84	%		5.41	%		6.95	%				4.21	%		5.47	%
Effect to adjust for merger and conversion expenses		11.05	%		1.33	%		3.06	%		12.70	%		1.00	%				5.93	%		1.65	%
Efficiency ratio (Tax Equivalent)		78.74	%		69.49	%		72.37	%		80.95	%		66.91	%				74.26	%		68.95	%

Tangible Book Value Per Common Share (10)
Tangible book value per common share (non-GAAP)	$	21.76		$	23.09		$	22.89		$	22.54		$	23.46
Effect to adjust for intangible assets		18.55			7.24			7.33			7.43			5.25
Book value per common share (GAAP)	$	40.31		$	30.33		$	30.22		$	29.97		$	28.71

Tangible Common Equity-to-Tangible Assets
Tangible common equity-to-tangible assets (non-GAAP)		6.85	%		7.99	%		7.76	%		7.62	%		8.35	%
Effect to adjust for tangible assets		4.42	%		2.25	%		2.24	%		2.26	%		1.68	%
Common equity-to-assets (GAAP)		11.27	%		10.24	%		10.00	%		9.88	%		10.03	%

Tangible Equity-to-Tangible Assets (10)
Tangible equity-to-tangible assets (non-GAAP)		7.70	%		7.99	%		7.76	%		7.62	%		8.35	%
Effect to adjust for intangible assets		4.38	%		2.25	%		2.24	%		2.26	%		1.68	%
Equity-to-assets (GAAP)		12.08	%		10.24	%		10.00	%		9.88	%		10.03	%







SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2013							September 30, 2012
	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	$	418,104		$	505	0.48	%		210,080		$	282	0.53	%
Investment securities (taxable)		507,575			3,315	2.59	%		345,693			1,902	2.19	%
Investment securities (tax-exempt)		149,083			1,202	3.20	%		156,124			1,172	2.99	%
Loans held for sale		53,204			543	4.05	%		56,300			492	3.48	%
Acquired loans, net of allowance for acquired loan losses		2,427,583			48,462	7.92	%		501,214			16,004	12.70	%
Non-acquired loans (1)		2,698,580			29,673	4.36	%		2,497,478			29,683	4.73	%
Total interest-earning assets		6,254,129			83,700	5.31	%		3,766,889			49,535	5.23	%

Noninterest-Earning Assets:
Cash and due from banks		125,038							80,332
Other assets		873,835							531,469
Allowance for non-acquired loan losses		(38,584	)						(47,254	)
Total noninterest-earning assets		960,289							564,547
Total Assets	$	7,214,418						$	4,331,436

Interest-Bearing Liabilities:
Transaction and money market accounts	$	2,560,685		$	832	0.13	%	$	1,548,673		$	712	0.18	%
Savings deposits		561,773			115	0.08	%		307,087			115	0.15	%
Certificates and other time deposits		1,503,519			1,752	0.46	%		944,709			1,143	0.48	%
Federal funds purchased and repurchase agreements		251,551			92	0.15	%		223,844			105	0.19	%
Other borrowings		93,849			1,239	5.24	%		45,908			551	4.77	%
Total interest-bearing liabilities		4,971,377			4,030	0.32	%		3,070,221			2,626	0.34	%

Noninterest-Bearing Liabilities:
Demand deposits		1,359,137							813,372
Other liabilities		46,719							18,660
Total noninterest-bearing liabilities ("Non-IBL")		1,405,856							832,032
Shareholders' equity		837,185							429,183
Total Non-IBL and shareholders' equity		2,243,041							1,261,215
Total liabilities and shareholders' equity	$	7,214,418						$	4,331,436

Net interest income and margin (NON-TAX EQUIV.)				$	79,670	5.05	%				$	46,909	4.95	%
Net interest margin (TAX EQUIVALENT)						5.11	%						5.02	%







SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)

	Nine Months Ended
	September 30, 2013							September 30, 2012
	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	$	367,146		$	1,366	0.50	%	$	224,930		$	773	0.46	%
Investment securities (taxable)		427,386			7,572	2.37	%		315,559			5,630	2.38	%
Investment securities (tax-exempt)		152,260			3,582	3.15	%		116,240			2,746	3.16	%
Loans held for sale		48,161			1,262	3.50	%		40,052			1,089	3.63	%
Acquired loans, net of allowance for acquired loan losses		1,457,036			96,324	8.84	%		447,851			36,983	11.03	%
Non-acquired loans (1)		2,634,362			87,293	4.43	%		2,469,977			90,004	4.87	%
Total interest-earning assets		5,086,351			197,399	5.19	%		3,614,609			137,225	5.07	%

Noninterest-Earning Assets:
Cash and due from banks		113,744							88,935
Other assets		649,527							539,954
Allowance for non-acquired loan losses		(41,466	)						(48,092	)
Total noninterest-earning assets		721,805							580,797
Total Assets	$	5,808,156						$	4,195,406

Interest-Bearing Liabilities:
Transaction and money market accounts	$	2,084,504		$	2,007	0.13	%	$	1,509,350		$	2,559	0.23	%
Savings deposits		422,548			277	0.09	%		290,679			389	0.18	%
Certificates and other time deposits		1,172,625			3,437	0.39	%		926,908			3,786	0.55	%
Federal funds purchased and repurchase agreements		289,143			343	0.16	%		222,877			341	0.20	%
Other borrowings		67,818			2,579	5.08	%		46,196			1,666	4.82	%
Total interest-bearing liabilities		4,036,638			8,643	0.29	%		2,996,010			8,741	0.39	%

Noninterest-Bearing Liabilities:
Demand deposits		1,115,407							770,037
Other liabilities		33,012							19,783
Total noninterest-bearing liabilities ("Non-IBL")		1,148,419							789,820
Shareholders' equity		623,099							409,576
Total Non-IBL and shareholders' equity		1,771,518							1,199,396
Total liabilities and shareholders' equity	$	5,808,156						$	4,195,406

Net interest income and margin (NON-TAX EQUIV.)				$	188,756	4.96	%				$	128,484	4.75	%
Net interest margin (TAX EQUIVALENT)						5.03	%						4.79	%







SCBT Financial Corporation
(Unaudited)
(Dollars in thousands)

																Third
	Three Months Ended															Quarter		Nine Months Ended						YTD
	September 30,			June 30,			March 31,			December 31,			September 30,			2013 - 2012		September 30,						2013 - 2012
NONINTEREST INCOME & EXPENSE	2013			2013			2013			2012			2012			% Change		2013			2012			% Change
Noninterest income:
Service charges on deposit accounts	$	8,966		$	5,736		$	5,761		$	6,313		$	6,169		45.3	%		20,463			17,501		16.9	%
Bankcard services income		6,493			4,245			3,893			3,665			3,570		81.9	%		14,631			10,508		39.2	%
Mortgage banking income		1,342			1,922			3,355			4,196			3,496		-61.6	%		6,619			8,365		-20.9	%
Trust and investment services income		3,593			2,438			2,314			1,744			1,577		127.8	%		8,345			4,617		80.7	%
Securities gains, net (8)		--			--			--			128			--					--			61		-100.0	%
Amortization of FDIC indemnification asset		(7,625	)		(7,310	)		(7,171	)		(6,547	)		(6,623	)	-15.1	%		(22,106	)		(14,226	)	55.4	%
Other		2,496			1,454			1,371			1,401			977		155.5	%		5,321			3,557		49.6	%
Total noninterest income	$	15,265		$	8,485		$	9,523		$	10,900		$	9,166		66.5	%	$	33,273		$	30,383		9.5	%

Noninterest expense:
Salaries and employee benefits	$	34,464		$	23,746		$	23,252		$	21,351		$	18,647		84.8	%	$	81,462		$	54,957		48.2	%
Information services expense		3,827			2,992			3,192			3,060			2,662		43.8	%		10,011			8,031		24.7	%
OREO expense and loan related		3,461			2,820			3,102			3,221			3,951		-12.4	%		9,383			8,782		6.8	%
Net occupancy expense		5,046			3,272			3,345			2,949			2,981		69.3	%		11,663			8,660		34.7	%
Furniture and equipment expense		3,523			2,266			2,517			2,340			2,165		62.7	%		8,306			6,774		22.6	%
Merger and conversion related expense		10,397			860			1,963			7,552			568		1730.5	%		13,220			2,662		396.6	%
Business development and staff related		1,186			1,276			1,228			1,017			878		35.1	%		3,690			2,319		59.1	%
FDIC assessment and other regulatory charges		1,521			1,096			1,224			887			878		73.2	%		3,841			2,988		28.5	%
Bankcard expense		1,752			1,236			1,164			985			1,057		65.8	%		4,152			3,077		34.9	%
Amortization of intangibles		1,738			1,022			1,034			566			566		207.1	%		3,794			1,606		136.2	%
Professional fees		1,377			760			691			673			643		114.2	%		2,828			2,008		40.8	%
Advertising and marketing		1,150			648			842			689			736		56.3	%		2,640			2,046		29.0	%
Other		5,977			2,891			2,887			2,849			2,299		160.0	%		11,755			6,850		71.6	%
Total noninterest expense	$	75,419		$	44,885		$	46,441		$	48,139		$	38,031		98.3	%	$	166,745		$	110,760		50.5	%


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.
(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 $10,397,000, $860,000, $1,963,000, $7,552,000, and $568,000, for the quarters ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, and September 30, 2012, respectively; and (b) pre-tax securities gains of $128,000 for the quarter ended December 31, 2012.
(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) ASC Topic 310-30 acquired loans are not included in non-performing assets because the accretion method is being used for these 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) September 30, 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 returns on equity and common 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.

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First Financial Holdings, Inc.
Media Contact:
Donna Pullen, 803-765-4558
or
Analyst Contact:
John C. Pollok, 803-765-4628

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