Mergers and Acquisitions (Tables)

12 Months Ended

Dec. 31, 2012

Savannah Bancorp ("SAVB")

Mergers and Acquisitions

Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred

(Dollars in thousands)	As Recorded by Savannah			Fair Value Adjustments			As Recorded by SCBT
Assets
Cash and cash equivalents	$	86,244		$	—		$	86,244
Investment securities		75,460			(1,288	)(a)		74,172
Loans		660,555			(59,196	)(b)		601,359
Premises and equipment		12,555			(1,843	)(c)		10,712
Intangible assets		3,357			9,546	(d)		12,903
Other real estate owned and repossessed assets		13,934			(5,315	)(e)		8,619
Bank owned life insurance		6,705			—			6,705
Deferred tax asset		(790	)		39,143	(f)		38,353
Other assets		8,497			(2,348	)(g)		6,149
Total assets	$	866,517		$	(21,301	)	$	845,216
Liabilities
Deposits:
Noninterest-bearing	$	129,902		$	—		$	129,902
Interest-bearing		619,198			2,530	(h)		621,728
Total deposits		749,100			2,530			751,630
Federal funds purchased and securites sold under agreements to repurchase		13,491			—			13,491
Other borrowings		30,613			(232	)(i)		30,381
Other liabilities		8,026			6,657	(j)		14,683
Total liabilities		801,230			8,955			810,185
Net identifiable assets acquired over (under) liabilities assumed		65,287			(30,256	)		35,031
Goodwill		—			33,886			33,886
Net assets acquired over (under) liabililities assumed	$	65,287		$	3,630		$	68,917
Consideration:
SCBT Financial Corporation common shares issued		1,802,137
Purchase price per share of the Company's common stock	$	38.20
Company common stock issued and cash exchanged for fractional shares		68,854
Cash paid for stock options outstanding		63
Fair value of total consideration transferred	$	68,917

Explanation of fair value adjustments

(a)

—Adjustment reflects marking the available-for-sale portfolio to fair value as of the acquisition date.

(b)

—Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired loan portfolio and excludes the allowance for loan losses recorded by Savannah.

(c)

—Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired premises and equipment.

(d)

—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts and other intangibles for non-compete agreements and customer lists.

(e)

—Adjustment reflects the fair value adjustments to OREO based on the Company's evaluation of the acquired OREO portfolio.

(f)

—Adjustment to record deferred tax asset related to purchase accounting adjustments at 35.8% income tax rate.

(g)

—Adjustment reflects uncollectible portion of accrued interest receivable.

(h)

—Adjustment arises since the rates on interest-bearing deposits are higher than rates available on similar deposits as of the acquisition date.

(i)

—Adjustment reflects the prepayment fee paid when FHLB advances were completely paid off in December of 2012 and the fair value adjustment based on the Company's evaluation of the junior subordinated debt.

(j)

—Adjustment reflects the incremental accrual for employee related benefits, asset sale termination fee and other liabilities.

Peoples

Mergers and Acquisitions

Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred

(Dollars in thousands)	As Recorded by Peoples		Initial Fair Value Adjustments			Subsequent Fair Value Adjustments			As Recorded by SCBT
Assets
Cash and cash equivalents	$	24,459	$	—		$	—		$	24,459
Investment securities		176,334		(442	)(a)		—			175,892
Loans		262,858		(28,613	)(b)		—			234,245
Premises and equipment		10,094		3,240	(c)		(38	)(c)		13,296
Intangible assets		—		2,930	(d)		—			2,930
Other real estate owned and repossessed assets		13,257		(5,341	)(e)		188	(e)		8,104
Deferred tax asset		4,702		11,669	(f)		97	(f)		16,468
Other assets		17,588		(883	)(g)		—			16,705
Total assets	$	509,292	$	(17,440	)	$	247		$	492,099
Liabilities
Deposits:
Noninterest-bearing	$	54,884	$	—		$	—		$	54,884
Interest-bearing		378,781		1,405	(h)		—			380,186
Total deposits		433,665		1,405			—			435,070
Other borrowings		9,542		—			—			9,542
Other liabilities		4,291		2,054	(i)		421	(i)		6,766
Total liabilities		447,498		3,459			421			451,378
Net identifiable assets acquired over (under) liabilities assumed		61,794		(20,899	)		(174	)		40,721
Goodwill		—		3,654			174			3,828
Net assets acquired over (under) liabilities assumed	$	61,794	$	(17,245	)	$	—		$	44,549
Consideration:
SCBT Financial Corporation common shares issued		1,002,741
Purchase price per share of the Company's common stock	$	31.06
Company common stock issued and cash exchanged for fractional shares		31,160
Cash paid for stock options outstanding		96
Cash paid for TARP preferred stock		13,293
Fair value of total consideration transferred	$	44,549

Explanation of fair value adjustments

(a)

—Adjustment reflects marking the available-for-sale portfolio to fair value as of the acquisition date.

(b)

—Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired loan portfolio and excludes the allowance for loan losses recorded by Peoples Bancorporation, Inc.

(c)

—Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired premises and equipment.

(d)

—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts and other intangibles for non-compete agreements.

(e)

—Adjustment reflects the fair value adjustments to OREO based on the Company's evaluation of the acquired OREO portfolio.

(f)

—Adjustment to record deferred tax asset related to purchase accounting adjustments at 35.8% income tax rate.

(g)

—Adjustment reflects uncollectible portion of accrued interest receivable.

(h)

—Adjustment arises since the rates on interest-bearing deposits are higher than rates available on similar deposits as of the acquisition date.

(i)

—Adjustment reflects the incremental accrual for SERP termination, other employee related benefits, and other liabilities.