Mergers and Acquisitions (Tables)

3 Months Ended

Mar. 31, 2013

Savannah Bancorp ("SAVB")

Mergers and Acquisitions

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

The following table presents the assets acquired and liabilities assumed as of December 13, 2012, as recorded by Savannah on the acquisition date and initial and subsequent fair value adjustments.

							Subsequent
	As Recorded by			Fair Value			Fair Value			As Recorded
(Dollars in thousands)	Savannah			Adjustments			Adjustments			by SCBT
Assets
Cash and cash equivalents	$	86,244		$	—		$	—		$	86,244
Investment securities	75,460			(1,288		)(a)	31		(a)	74,203
Loans	660,555			(59,196		)(b)	—			601,359
Premises and equipment	12,555			(1,843		)(c)	(264		)(c)	10,448
Intangible assets	3,357			9,546		(d)	15		(d)	12,918
Other real estate owned and repossessed assets	13,934			(5,315		)(e)	264		(e)	8,883
Bank owned life insurance	6,705			—			—			6,705
Deferred tax asset	(790		)	39,143		(f)	(128		)(f)	38,225
Other assets	8,497			(2,348		)(g)	—			6,149
Total assets	$	866,517		$	(21,301	)	$	(82	)	$	845,134
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 securities sold under agreements to repurchase	13,491			—			—			13,491
Other borrowings	30,613			(232		)(i)	—			30,381
Other liabilities	8,026			6,657		(j)	(311		)(j)	14,372
Total liabilities	801,230			8,955			(311		)	809,874
Net identifiable assets acquired over (under) liabilities assumed	65,287			(30,256		)	229			35,260
Goodwill	—			33,886			(229		)	33,657
Net assets acquired over liabilities 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 fair value 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

The following table presents the assets acquired and liabilities assumed as of April 24, 2012, as recorded by Peoples on the acquisition date and initial and subsequent fair value adjustments.

			Initial			Subsequent
	As Recorded by		Fair Value			Fair Value			As Recorded
(Dollars in thousands)	Peoples		Adjustments			Adjustments			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		3,202		(c)	—			13,296
Intangible assets	—		2,930		(d)	—			2,930
Other real estate owned and repossessed assets	13,257		(5,153		)(e)	—			8,104
Deferred tax asset	4,702		11,766		(f)	64		(f)	16,532
Other assets	17,588		(883		)(g)	—			16,705
Total assets	$	509,292	$	(17,193	)	$	64		$	492,163
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		2,475		(i)	178		(i)	6,944
Total liabilities	447,498		3,880			178			451,556
Net identifiable assets acquired over (under) liabilities assumed	61,794		(21,073		)	(114		)	40,607
Goodwill	—		3,828			114			3,942
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 fair value 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.