SCBT Financial Corp. 10-Q
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20529
FORM
10-Q
(Mark
One)
[
X ]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT
OF 1934
For
the
quarterly period ended March
31, 2006
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT
OF 1934
Commission
file number 001-12669
SCBT
FINANCIAL CORPORATION
(exact
name of registrant as specified in its charter)
SOUTH
CAROLINA
(State
or other jurisdiction of
incorporation
or organization)
|
57-0799315
(IRS
Employer
Identification
No.)
|
520
GERVAIS STREET
COLUMBIA,
SOUTH CAROLINA
(Address
of principal executive offices)
|
29201
(Zip
Code)
|
(800)
277-2175
(Registrant’s
telephone number, including area code)
Indicate
by check mark whether the registrant (1) has filed all reports required to
be
filed
by
Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months
(or
for
such shorter period that the registrant was required to file such reports)
and
(2)
has been subject to such filing requirements for the past 90 days. Yes [X]
No [
]
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.
(See
definition of "accelerated filer and large accelerated filer" in Rule 12b-2
of
the Exchange Act.)
Large
accelerated filer [ ] Accelerated filer [X]
Non-accelerated filer [ ]
Indicate
by check mark whether the registrant is a shell company
(as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
Indicate
the number of shares outstanding of each of issuer’s classes of common stock, as
of the latest practicable date:
Class
Common
Stock, $2.50 par value
|
Outstanding
as of April 30, 2006
8,677,359
|
SCBT
Financial Corporation and Subsidiaries
March
31, 2006 Form
10-Q
INDEX
SCBT
Financial Corporation and Subsidiaries
(In
thousands of dollars, except par value)
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
|
2006
|
|
|
2005
|
|
|
|
|
(Unaudited)
|
|
|
(Note
1)
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash
and cash equivalents:
|
|
|
|
|
|
|
|
Cash
and due from banks
|
|
$
|
78,139
|
|
$
|
58,554
|
|
Interest-bearing
deposits with banks
|
|
|
3,187
|
|
|
3,140
|
|
Federal
funds sold and securities
|
|
|
|
|
|
|
|
purchased
under agreements to resell
|
|
|
35,060
|
|
|
41,440
|
|
Total
cash and cash equivalents
|
|
|
116,386
|
|
|
103,134
|
|
Investment
securities:
|
|
|
|
|
|
|
|
Securities
held to maturity (fair value of $14,046 in 2006 and $18,453 in
2005)
|
|
|
13,879
|
|
|
18,194
|
|
Securities
available for sale, at fair value
|
|
|
175,622
|
|
|
153,628
|
|
Other
investments
|
|
|
10,959
|
|
|
10,922
|
|
Total
investment securities
|
|
|
200,460
|
|
|
182,744
|
|
Loans
held for sale
|
|
|
24,193
|
|
|
12,961
|
|
Loans
|
|
|
1,601,727
|
|
|
1,535,918
|
|
Less
unearned income
|
|
|
(9
|
)
|
|
(17
|
)
|
Less
allowance for loan losses
|
|
|
(20,797
|
)
|
|
(20,025
|
)
|
Loans,
net
|
|
|
1,580,921
|
|
|
1,515,876
|
|
Premises
and equipment, net
|
|
|
44,518
|
|
|
43,664
|
|
Goodwill
|
|
|
32,220
|
|
|
32,220
|
|
Other
assets
|
|
|
35,495
|
|
|
35,257
|
|
Total
assets
|
|
$
|
2,034,193
|
|
$
|
1,925,856
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
267,834
|
|
$
|
254,099
|
|
Interest-bearing
|
|
|
1,327,606
|
|
|
1,219,190
|
|
Total
deposits
|
|
|
1,595,440
|
|
|
1,473,289
|
|
Federal
funds purchased and securities
|
|
|
|
|
|
|
|
sold
under agreements to repurchase
|
|
|
139,347
|
|
|
150,163
|
|
Other
borrowings
|
|
|
135,240
|
|
|
144,257
|
|
Other
liabilities
|
|
|
12,401
|
|
|
9,744
|
|
Total
liabilities
|
|
|
1,882,428
|
|
|
1,777,453
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
Common
stock - $2.50 par value; authorized 40,000,000 shares
|
|
|
|
|
|
|
|
8,672,570
and 8,644,883 shares issued and outstanding
|
|
|
21,681
|
|
|
21,612
|
|
Surplus
|
|
|
90,851
|
|
|
90,481
|
|
Retained
earnings
|
|
|
40,927
|
|
|
37,614
|
|
Accumulated
other comprehensive loss
|
|
|
(1,694
|
)
|
|
(1,304
|
)
|
Total
shareholders' equity
|
|
|
151,765
|
|
|
148,403
|
|
Total
liabilities and shareholders' equity
|
|
$
|
2,034,193
|
|
$
|
1,925,856
|
|
The
Accompanying Notes are an Integral Part of the Financial
Statements.
SCBT
Financial Corporation and Subsidiaries
(In
thousands of dollars, except per share data-unaudited)
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2006
|
|
2005
|
|
Interest
income:
|
|
|
|
|
|
|
|
Loans,
including fees
|
|
$
|
27,174
|
|
$
|
17,814
|
|
Investment
securities:
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,848
|
|
|
1,363
|
|
Tax-exempt
|
|
|
294
|
|
|
330
|
|
Federal
funds sold and securities
|
|
|
|
|
|
|
|
purchased
under agreements to resell
|
|
|
496
|
|
|
120
|
|
Money
market funds
|
|
|
--
|
|
|
1
|
|
Deposits
with banks
|
|
|
38
|
|
|
139
|
|
Total
interest income
|
|
|
29,850
|
|
|
19,767
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
|
|
8,165
|
|
|
4,090
|
|
Federal
funds purchased and securities
|
|
|
|
|
|
|
|
sold
under agreements to repurchase
|
|
|
1,483
|
|
|
375
|
|
Other
borrowings
|
|
|
1,819
|
|
|
644
|
|
Total
interest expense
|
|
|
11,467
|
|
|
5,109
|
|
Net
interest income:
|
|
|
|
|
|
|
|
Net
interest income
|
|
|
18,383
|
|
|
14,658
|
|
Provision
for loan losses
|
|
|
1,146
|
|
|
723
|
|
Net
interest income after provision for loan losses
|
|
|
17,237
|
|
|
13,935
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
|
3,137
|
|
|
2,870
|
|
Other
service charges and fees
|
|
|
2,889
|
|
|
2,407
|
|
Gain
on sale of assets
|
|
|
9
|
|
|
3
|
|
Total
noninterest income
|
|
|
6,035
|
|
|
5,280
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
|
9,816
|
|
|
7,732
|
|
Net
occupancy expense
|
|
|
1,016
|
|
|
797
|
|
Furniture
and equipment expense
|
|
|
1,154
|
|
|
948
|
|
Other
expense
|
|
|
4,383
|
|
|
3,666
|
|
Total
noninterest expense
|
|
|
16,369
|
|
|
13,143
|
|
Earnings:
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
|
6,903
|
|
|
6,072
|
|
Provision
for income taxes
|
|
|
2,117
|
|
|
2,002
|
|
Net
income
|
|
$
|
4,786
|
|
$
|
4,070
|
|
Earnings
per share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.55
|
|
$
|
0.51
|
|
Diluted
|
|
$
|
0.55
|
|
$
|
0.50
|
|
The
Accompanying Notes are an Integral Part of the Financial
Statements.
SCBT
Financial Corporation and Subsidiaries
Three
Months Ended March
31, 2006
and 2005
(In
thousands of dollars, except per share data-unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
Stock
Dividend
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Distributable
|
|
|
Surplus
|
|
|
Earnings
|
|
|
Income
(Loss)
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
December 31, 2004
|
|
|
7,657,094
|
|
$
|
19,143
|
|
$
|
955
|
|
$
|
72,079
|
|
$
|
26,486
|
|
$
|
135
|
|
$
|
118,798
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
4,070
|
|
|
--
|
|
|
4,070
|
|
Change
in net unrealized loss on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available
for sale, net of tax effects
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(1,158
|
)
|
|
(1,158
|
)
|
Total
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,912
|
|
Cash
dividends declared at $.17 per share
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(1,369
|
)
|
|
--
|
|
|
(1,369
|
)
|
Stock
options exercised
|
|
|
12,702
|
|
|
31
|
|
|
--
|
|
|
213
|
|
|
--
|
|
|
--
|
|
|
244
|
|
Employee
stock purchases
|
|
|
3,173
|
|
|
8
|
|
|
--
|
|
|
73
|
|
|
--
|
|
|
--
|
|
|
81
|
|
Restricted
stock awards
|
|
|
11,592
|
|
|
29
|
|
|
--
|
|
|
360
|
|
|
--
|
|
|
--
|
|
|
389
|
|
Common
stock repurchased
|
|
|
(7,695
|
)
|
|
(19
|
)
|
|
--
|
|
|
(211
|
)
|
|
--
|
|
|
--
|
|
|
(230
|
)
|
Common
stock dividend of 5%, record date, December 20, 2004
|
|
|
381,328
|
|
|
953
|
|
|
(955
|
)
|
|
2
|
|
|
--
|
|
|
--
|
|
|
--
|
|
Balance,
March 31, 2005
|
|
|
8,058,194
|
|
$
|
20,145
|
|
$
|
--
|
|
$
|
72,516
|
|
$
|
29,187
|
|
$
|
(1,023
|
)
|
$
|
120,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
December 31, 2005
|
|
|
8,644,883
|
|
$
|
21,612
|
|
$
|
--
|
|
$
|
90,481
|
|
$
|
37,614
|
|
$
|
(1,304
|
)
|
$
|
148,403
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
4,786
|
|
|
--
|
|
|
4,786
|
|
Change
in net unrealized loss on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available
for sale, net of tax effects
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(390
|
)
|
|
(390
|
)
|
Total
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,396
|
|
Cash
dividends declared at $.17 per share
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(1,473
|
)
|
|
--
|
|
|
(1,473
|
)
|
Stock
options exercised
|
|
|
5,868
|
|
|
15
|
|
|
--
|
|
|
88
|
|
|
--
|
|
|
--
|
|
|
103
|
|
Restricted
stock awards
|
|
|
24,173
|
|
|
60
|
|
|
--
|
|
|
190
|
|
|
--
|
|
|
--
|
|
|
250
|
|
Common
stock repurchased
|
|
|
(2,354
|
)
|
|
(6
|
)
|
|
--
|
|
|
(75
|
)
|
|
--
|
|
|
--
|
|
|
(81
|
)
|
Share
based compensation expense
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
167
|
|
|
--
|
|
|
--
|
|
|
167
|
|
Balance,
March 31, 2006
|
|
|
8,672,570
|
|
$
|
21,681
|
|
$
|
--
|
|
$
|
90,851
|
|
$
|
40,927
|
|
$
|
(1,694
|
)
|
$
|
151,765
|
|
The
Accompanying Notes are an Integral Part of the Financial
Statements.
SCBT
Financial Corporation and Subsidiaries
(In
thousands of dollars-unaudited)
|
|
|
Three
Months Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2006
|
|
|
2005
|
|
|
|
|
|
|
|
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
4,786
|
|
$
|
4,070
|
|
Adjustments
to reconcile net income to net cash
|
|
|
|
|
|
|
|
provided
(used) by operating activities:
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
750
|
|
|
633
|
|
Provision
for loan losses
|
|
|
1,146
|
|
|
723
|
|
Share
based compensation expense
|
|
|
167
|
|
|
--
|
|
Gain
on sale of premises and equipment
|
|
|
(9
|
)
|
|
(3
|
)
|
Net
amortization of investment securities
|
|
|
8
|
|
|
71
|
|
Net
loans held for sale
|
|
|
(11,232
|
)
|
|
(3,867
|
)
|
Net
change in miscellaneous assets and liabilities
|
|
|
2,858
|
|
|
831
|
|
Net
cash provided (used) by operating activities
|
|
|
(1,526
|
)
|
|
2,458
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
Proceeds
from maturities and calls of investment securities held to
maturity
|
|
|
4,307
|
|
|
3,244
|
|
Proceeds
from maturities of investment securities available for
sale
|
|
|
6,208
|
|
|
4,683
|
|
Proceeds
from sales of other investment securities
|
|
|
269
|
|
|
--
|
|
Purchases
of investment securities available for sale
|
|
|
(28,831
|
)
|
|
(5,852
|
)
|
Purchases
of other investment securities
|
|
|
(306
|
)
|
|
(481
|
)
|
Net
increase in customer loans
|
|
|
(66,313
|
)
|
|
(42,174
|
)
|
Recoveries
of loans previously charged off
|
|
|
123
|
|
|
77
|
|
Purchases
of premises and equipment
|
|
|
(1,808
|
)
|
|
(771
|
)
|
Proceeds
from sale of premises and equipment
|
|
|
270
|
|
|
133
|
|
Net
cash used by investing activities
|
|
|
(86,081
|
)
|
|
(41,141
|
)
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
Net
increase in deposits
|
|
|
122,151
|
|
|
74,607
|
|
Net
increase (decrease) in federal funds purchased
|
|
|
|
|
|
|
|
and
securities sold under agreements to repurchase
|
|
|
(10,816
|
)
|
|
7,014
|
|
Repayment
of other borrowings
|
|
|
(9,025
|
)
|
|
(25
|
)
|
Common
stock repurchase
|
|
|
(81
|
)
|
|
(230
|
)
|
Dividends
paid
|
|
|
(1,473
|
)
|
|
(1,369
|
)
|
Stock
options exercised
|
|
|
103
|
|
|
244
|
|
Net
cash provided by financing activities
|
|
|
100,859
|
|
|
80,241
|
|
Net
increase in cash and cash equivalents
|
|
|
13,252
|
|
|
41,558
|
|
Cash
and cash equivalents at beginning of period
|
|
|
103,134
|
|
|
57,137
|
|
Cash
and cash equivalents at end of period
|
|
$
|
116,386
|
|
$
|
98,695
|
|
The
Accompanying Notes are an Integral Part of the Financial
Statements.
SCBT
Financial Corporation and Subsidiaries
Note
1 - Basis of Presentation
The
accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10
of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation
have
been included. Certain prior period information has been reclassified to conform
to the current period presentation. Operating results for the three months
ended
March
31, 2006
are not
necessarily indicative of the results that may be expected for the year ending
December
31, 2006.
The
condensed consolidated balance sheet at December
31, 2005,
has been
derived from the audited financial statements at that date, but does not include
all of the information and footnotes required by generally accepted accounting
principles for complete financial statements.
The
information contained in the consolidated financial statements and accompanying
footnotes included in the Company's annual report on Form 10-K for the year
ended December
31, 2005
should be
referenced when reading these unaudited condensed consolidated financial
statements.
Note
2 - Recent Accounting Pronouncements
In
March
2006, the Financial Accounting Standards Board (“FASB”) issued Statement No.
156, Accounting
for Servicing of Financial Assets.
Statement No. 156, which is an amendment to Statement No. 140, simplifies the
accounting for servicing assets and liabilities, such as those common with
mortgage securitization activities. The new standard clarifies when an
obligation to service financial assets should be separately recognized as a
servicing asset or a servicing liability; requires that a separately recognized
servicing asset or servicing liability be initially measured at fair value,
if
practicable; and permits an entity with a separately recognized servicing asset
or servicing liability to choose either the amortization method or fair value
method for subsequent measurement. Statement No. 156 is effective for separately
recognized servicing assets and liabilities acquired or issued after the
beginning of an entity’s fiscal year that begins after September 15, 2006, with
early adoption permitted. Adoption of this statement is not expected to have
a
material effect on the Company's results of operations or financial condition.
In
February 2006, the FASB issued Statement No. 155, Accounting
for Certain Hybrid Instruments,
which is
an amendment of Statements No. 133 and 140. Statement No. 155 allows financial
instruments that have embedded derivatives to be accounted for as a whole
(eliminating the need to bifurcate the derivative from its host) if the holder
elects to account for the whole instrument on a fair value basis. The statement
also clarifies which interest-only strips and principal-only strips are not
subject to the requirements of Statement No. 133; establishes a requirement
to
evaluate interests in securitized financial assets to identify interests that
are freestanding derivatives or that are hybrid financial instruments that
contain an embedded derivative requiring bifurcation; clarifies that
concentrations of credit risk in the form of subordination are not embedded
derivatives; and amends Statement No. 140 to eliminate the prohibition on a
qualifying special-purpose entity from holding a derivative financial instrument
that pertains to a beneficial interest other than another derivative financial
instrument. Statement No. 155 is effective for all financial instruments
acquired or issued after the beginning of an entity’s first fiscal year that
begins after September 15, 2006. Adoption of this statement is not expected
to
have a material effect on the Company's results of operations or financial
condition.
In
May
2005, the FASB issued Statement No. 154, Accounting
Changes and Error Corrections - A Replacement of APB Opinion No. 20 and FASB
Statement No. 3.
This new
standard replaces Accounting Principles Board Opinion No. 20, Accounting
Changes,
and FASB
Statement No. 3, Reporting
Accounting Changes in Interim Financial Statements.
Among
other changes, Statement No. 154 requires that a voluntary change in accounting
principle be applied retrospectively with all prior period financial statements
presented on the new accounting principle, unless it is impracticable to do
so.
Statement No. 154 also provides that (1) a change in method of depreciating
or
amortizing a long-lived nonfinancial asset be accounted for as a change in
estimate (prospectively) that was effected by a change in accounting principle,
and (2) correction of errors in previously issued financial statements should
be
termed a “restatement”. The new standard is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005.
Early adoption is permitted for accounting changes and corrections of errors
made in fiscal years beginning after the date Statement No. 154 was issued.
The
Statement does not change the transition provisions of any existing accounting
pronouncements, including those that are in a transition phase as of the
effective date of Statement No. 154. The Company does not anticipate this
revision will have a material effect on its financial statements.
Note
3 - Retirement Plan
Effective
January 1, 2006, amendments were made to our pension plan and 401(k) savings
plan. On this date a new benefit formula applies only to participants who
have
not attained age 45 or who do not have five years of service. Concurrently,
changes in our 401(k)
plan will be effective for new employees hired on or after this date or for
employees under the age of 45 or who have attained at least five years of
service.
The
components of net periodic pension expense recognized during the three months
ended March 31 are as follows (in thousands):
|
|
|
2006
|
|
|
2005
|
|
|
|
|
|
|
|
|
|
Service
cost
|
|
$
|
155
|
|
$
|
237
|
|
Interest
cost
|
|
|
206
|
|
|
208
|
|
Expected
return on assets
|
|
|
(276
|
)
|
|
(239
|
)
|
Amortization
of prior service cost
|
|
|
(43
|
)
|
|
(10
|
)
|
Recognized
net actuarial cost
|
|
|
93
|
|
|
90
|
|
|
|
|
|
|
|
|
|
Net
periodic pension expense
|
|
$
|
135
|
|
$
|
286
|
|
The
Company contributed $195,000 to the pension plan during the first quarter of
2006
and
anticipates making similar additional contributions during the
year.
On
March
31, 2006, the FASB issued an exposure draft entitled Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans, an
amendment of FASB Statements No. 87, 88, 106, and 132R,
which
will revise the reporting of assets and liabilities for pensions and other
post-retirement benefits. The current standards require recognizing the
accumulated excess or shortfall of contributions over expense as a prepaid
asset
or an accrued liability, respectively. For pensions, the balance sheet may
be
further adjusted if the accumulated benefit obligation (which is based only
on
current pay) is greater than plan assets. The exposure draft proposes that
the
balance sheet entry will be directly equal to the excess or shortfall of a
plan’s assets over the plan’s benefit liability. The measure of benefit
liability under the proposed rules would be the projected benefit obligation
(which reflects anticipated future pay growth) in pension programs or the
accumulated post-retirement benefit obligation in retiree welfare programs.
The
changes would apply for fiscal years ending after December 15, 2006 and could
affect the Company’s pension and postretirement plan as early as December 31,
2006. The current proposal should not have an effect on the income statement
but
could have an effect on the balance sheet and adjustments to accumulated other
comprehensive income. The Company is in the process of determining the effect
of
this exposure draft.
Note
4 - Earnings Per Share
Basic
earnings per share are calculated by dividing net income by the weighted-average
shares of common stock outstanding during each period. The Company’s diluted
earnings per share are based on the weighted-average shares of common stock
outstanding during each period plus the maximum dilutive effect of common stock
issuable upon exercise of stock options. The weighted average number of shares
and equivalents are determined after giving retroactive effect to stock
dividends and stock splits. Weighted-average shares outstanding used in
calculating earnings per share for the three months ended March 31 are as
follows:
|
|
|
2006
|
|
|
2005
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
8,669,974
|
|
|
8,053,089
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
8,765,764
|
|
|
8,127,230
|
|
The
calculation of diluted earnings per share excludes outstanding stock options
that have exercise prices greater than the average market price of the common
shares. The number of shares in this category was 32,968 with an exercise price
of $33.57 at March 31, 2005. There were no options in this category at March
31,
2006.
Dividends
per share are calculated using the current number of common shares issued and
outstanding at the record date for any dividends paid during the reported
periods.
Note
5 - Share-Based Compensation
The
Company’s 1999 and 2004 stock option programs are long-term retention programs
intended to attract, retain, and provide incentives for key employees and
non-employee directors in the form of incentive and non-qualified stock options
and restricted stock.
With
the
exception of non-qualified options granted to directors under the 1999 and
2004
plans, which in some cases may be exercised at any time prior to expiration
and
in some other cases may be exercised at intervals less than one year following
the grant date, incentive stock options granted under the plans may not be
exercised in whole or in part within one year following the date of the grant
as
these incentive stock options become exercisable in 25% increments ratably
over
the four year period following the grant date. The options are granted at an
exercise price at least equal to the fair value of the common stock at the
date
of grant and have terms ranging from five to ten years. No options were granted
under the 1999 plan after January 2, 2004, and the plan is closed other than
for
any options still unexercised and outstanding. The 2004 plan is the only plan
from which new stock-based compensation grants may be issued.
Prior
to
January 1, 2006, the Company’s stock option plans were accounted for under the
recognition and measurement provisions of APB Opinion No. 25 (“Opinion 25”),
Accounting
for Stock Issued to Employees,
and
related Interpretations, as permitted by FASB Statement No. 123, Accounting
for Stock-Based Compensation
(as
amended by SFAS No. 148, Accounting
for Stock-Based Compensation Transition and Disclosure)
(collectively “SFAS 123”). No stock-based employee compensation cost was
recognized in the Company’s consolidated statements of income through December
31, 2005, as all options granted under the plans had an exercise price equal
to
the market value of the underlying common stock on the date of grant. Effective
January 1, 2006, the Company adopted the fair value recognition provisions
of
FASB Statement No. 123(R), Share-Based
Payment
(“SFAS
123R”), using the modified-prospective transition method. Under that transition
method, compensation cost recognized in 2006 includes: (a) compensation cost
for
all share-based payments granted prior to, but not yet vested as of January
1,
2006, based on the grant date fair value calculated in accordance with the
original provisions of SFAS 123, and (b) compensation cost for all share-based
payments granted subsequent to December 31, 2005, based on the grant-date fair
value estimated in accordance with the provisions of SFAS 123R. As of December
31, 2005, 304,018 stock options were not fully vested.
The
fair
value of options is estimated at the date of grant using the Black-Scholes
option pricing model and expensed over the options’ vesting periods. The
following weighted-average assumptions were used in valuing options
issued:
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
|
2006
|
|
|
2005
|
|
Dividend
yield
|
|
|
2.17%
|
|
|
2.19%
|
|
Expected
life
|
|
|
10
years
|
|
|
10
years
|
|
Expected
volatility
|
|
|
19.00%
|
|
|
24.00%
|
|
Risk-free
interest rate
|
|
|
4.55%
|
|
|
4.22%
|
|
The
following table presents pro forma net income and earnings per share as if
the
fair value based method had been applied to all outstanding and unvested awards
for the three months ended March 31, 2005:
(in
thousands of dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
Net
income, as reported
|
|
$
|
4,070
|
|
Less,
total stock-based employee
|
|
|
|
|
compensation
expense determined under fair
|
|
|
|
|
value
based method, net of related tax effects
|
|
|
66
|
|
|
|
|
|
|
Pro
forma net income
|
|
$
|
4,004
|
|
|
|
|
|
|
Earnings
per share:
|
|
|
|
|
Basic
- as reported
|
|
$
|
0.51
|
|
Basic
- pro forma
|
|
|
0.50
|
|
Diluted
- as reported
|
|
$
|
0.50
|
|
Diluted
- pro forma
|
|
|
0.49
|
|
As
a
result of adopting SFAS 123R on January 1, 2006, the Company’s earnings before
income taxes for the three months ended March 31, 2006, were approximately
$167,000 lower than if share-based compensation had continued to be accounted
for under Opinion 25.
The
Company from time-to-time also grants shares of restricted stock to key
employees and non-employee directors. These awards help align the interests
of
these employees and directors with the interests of the shareholders of the
Company by providing economic value directly related to increases in the value
of the Company’s stock. The value of the stock awarded is established as the
fair market value of the stock at the time of the grant. The Company recognizes
expenses, equal to the total value of such awards, ratably over the vesting
period of the stock grants. Grants to employees typically vest over a 48-month
period, while grants to non-employee directors typically vest within a 12-month
period.
Note
6 - Commitments and Contingent Liabilities
In
the
normal course of business, the Company makes various commitments and incurs
certain contingent liabilities, which are not reflected in the accompanying
financial statements. The commitments and contingent liabilities include
guarantees, commitments to extend credit, and standby letters of credit. At
March 31, 2006, commitments to extend credit and standby letters of credit
totaled $394,005,000. The Company does not anticipate any material losses as
a
result of these transactions.
Note
7 - Subsequent Events
On
March
1, 2006, the Company’s stock transfer agent, SunTrust Banks, Inc. (“SunTrust”)
sold its stock transfer business to Computershare Limited (“Computershare”), a
financial services and technology provider for the global securities industry,
providing services and solutions to listed companies, investors, employees,
exchanges and other financial institutions. The Company anticipates that
its contractual agreement with SunTrust will continue with
Computershare.
Management’s
Discussion and Analysis of Financial Condition and Results of Operations relates
to the financial statements contained in this quarterly report beginning on
page
1. For further information, refer to Management’s Discussion and Analysis of
Financial Condition and Results of Operations appearing in the Annual Report
on
Form 10-K for the year ended December
31, 2005.
Overview
SCBT
Financial Corporation (“we, us, or our”), headquartered in Columbia, South
Carolina, is a bank holding company incorporated under the laws of South
Carolina in 1985. We provide a wide range of banking services and products
to
our customers through our wholly-owned subsidiaries: South Carolina Bank and
Trust, N.A. (“SCBT”) and South Carolina Bank and Trust of the Piedmont, N.A.,
both national banks that opened for business in 1932 and 1996, respectively.
We
engage in no significant operations other than the ownership of these banking
subsidiaries.
At
March
31, 2006, we had $2 billion in assets and approximately 604 full-time equivalent
employees. Through our banking subsidiaries we provide our customers with
checking accounts, NOW accounts, savings and time deposits of various types,
brokerage services and alternative investment products such as annuities and
mutual funds, trust and asset management services, loans for businesses,
agriculture, real estate, personal use, home improvement and automobiles, credit
cards, letters of credit, home equity lines of credit, safe deposit boxes,
bank
money orders, wire transfer services, correspondent banking services, and use
of
ATM facilities.
Recent
Events
In
the
fourth quarter of 2005, we acquired Sun Bancshares, Inc. and its wholly-owned
subsidiary, SunBank, N.A. Pursuant to the agreement, the Sun Bancshares legal
entity was dissolved at the time of the purchase and SunBank remained in
existence to operate as a third subsidiary of the holding company until nearly
the end of the first quarter 2006. On March 24, 2006, the SunBank legal entity
was merged into SCBT providing our lead bank subsidiary with a loan production
office in Myrtle Beach, South Carolina, a full-service bank branch in Murrells
Inlet, South Carolina, and a full-service bank branch in Georgetown, South
Carolina.
On
March
9, 2006, we announced the promotion and appointment of John F. Windley to
President of SCBT. As President, Windley's primary responsibility will be to
manage the continued growth and success of our lead bank
subsidiary.
Results
of Operations
For
the first quarter of 2006, we had consolidated net income of $4,786,000,
an increase of 18 percent from $4,070,000 earned in the first quarter of
2005. Diluted earnings per share were $0.55 for the first quarter of 2006,
compared with $0.50 for the same period in 2005. Annualized returns on average
assets and average shareholders’ equity for the three months ended March
31, 2006 were 0.99 percent and 13.0 percent, respectively, compared to 1.10
percent and 13.8 percent, respectively, for the first quarter of 2005.
Annualized return on average tangible equity for the first quarter was 17.06
percent, as compared to 14.31 percent for the comparable period in the prior
year. Our cash earnings per share, which omits the effect of amortization
expense related to intangibles that are deducted from regulatory capital, was
$0.56 and $0.51 for the first quarters of 2006 and 2005,
respectively.
Net
Interest Income
For
the first quarter of 2006, net interest income was $18,383,000, an increase
of $3,725,000, or 25 percent, over $14,658,000 for the same period in 2005.
This
increase was largely the result of growth in earning assets. We continue to
actively gather deposits and borrow as needed to support this growth.
The
yield on a portion of our earning assets adjusts simultaneously, but to varying
degrees of magnitude, with changes in the general level of interest rates.
Comparing the first three months of 2006 and 2005, yields on earning assets
had
increased less than interest rates paid on interest-bearing liabilities.
Competition for deposits and other factors have caused rates on interest-bearing
liabilities to increase generally more than asset yields. For the three months
ended March 31, 2006, the non-tax equivalent yield on earning assets was 6.67
percent, compared with 5.73 percent during the same period in 2005,
an increase of 94 basis points. For the same comparative periods, the cost
of interest-bearing liabilities used to support these assets increased 117
basis points from 1.82 percent in 2005 to 2.99 percent in 2006. Increases in
rates paid on certificates of deposit, money market deposits, and federal funds
purchased primarily drove the increase in the cost of interest bearing
liabilities. Consequently, the taxable equivalent net interest margin
decreased 16 basis points from 4.31 percent in the first quarter of 2005 to
4.15 percent for the first quarter of 2006. The tax equivalent net interest
margin at December 31, 2005 was 4.23 percent.
Loans
are
our largest category of earning assets. As of March 31, 2006, loans outstanding,
net of unearned income, excluding loans held for sale, were $1,601,718,000,
compared with $1,535,901,000 at December 31, 2005. This represents
an increase of $65,817,000, or 4 percent, with significant growth in
commercial real estate and consumer real estate loan categories. For the three
months ended March 31, 2006, loans net of unearned income, excluding mortgage
loans held for sale, averaged $1,569,016,000 and increased in yield by 91 basis
points to 6.98 percent on a non-tax equivalent basis, compared to $1,177,059,000
with a non-tax equivalent yield of 6.07 percent for the same period in
2005.
Investment
securities, the second largest category of earning assets, are used to generate
interest income through the employment of excess funds, to provide liquidity,
to
fund loan demand or deposit liquidation, and to pledge as collateral for public
funds deposits and repurchase agreements. At March 31, 2006, investment
securities were $200,460,000, compared to $182,744,000 at December 31, 2005
and
$161,913,000 for the comparative period in 2005. The composition of the
portfolio remained relatively consistent during the first three months of 2006,
with a bias toward slightly lengthening the average life of the portfolio as
interest rates increase and with the possibility of the Federal Reserve's
tightening cycle ending this year.
For
the
quarter ended March 31, 2006, interest earned on investment securities was
$2,142,000, compared with $1,693,000 for the comparable period in 2005. This
increase of $449,000, or 27 percent, resulted from higher average outstanding
balances and yields in 2006 versus 2005. For the first three months of 2006,
investment securities averaged $189,157,000 with a yield of 4.59 percent on
a
non-taxable equivalent basis, compared to an average of $164,933,000 and yield
of 4.17 percent for the first quarter of 2005.
There
was
no net realized gain or loss on investments during the first quarter of
2006
and
2005.
As
of
March 31, 2006,
we had a
net unrealized pre-tax loss of $629,000 in
the
available-for-sale securities portfolio segment.
Although
securities classified as available for sale may be sold from time to time to
meet liquidity or other needs, it is not our normal practice to trade this
segment of the investment securities portfolio. While management has the ability
and generally holds these assets on a long-term basis or until maturity, any
short-term investments or securities available for sale could be converted
at an
earlier point, depending partly on changes in interest rates and alternative
investment opportunities.
During
the
first three months of 2006,
the
average balance of interest-bearing liabilities was $1,554,206,000
with an
average rate of 2.99
percent.
This represents a 117
basis
points increase
over the
average balance of $1,140,165,000
for the
same period of 2005,
during
which time the average rate was 1.82
percent.
At March 31, 2006,
approximately 41
percent
of interest-bearing liabilities had fixed rates for a specified term. These
are
expected to renew at prevailing market rates as they mature.
Non-interest
bearing deposits were $267,834,000
at March
31, 2006,
an increase
of
$13,735,000,
or
5
percent,
from $254,099,000
at
December 31, 2005.
During
the same three-month period, interest-bearing deposits grew
by
$108,416,000,
or
9
percent,
from $1,219,190,000
to
$1,327,606,000.
Comparing first quarter ending balances, interest-bearing deposits grew
over the
past twelve months by $308,597,000,
or
30
percent,
from $1,019,009,000
in
2005.
We paid
interest of $8,165,000
in the
first quarter of 2006
on
average interest-bearing deposits of $1,256,057,000,
compared
with $4,090,000
paid on
an average of $987,653,000
in the
comparable 2005
period.
Provision
for Loan Losses
Management
assesses the adequacy of the allowance for loan losses by using an internal
risk
rating system, independent credit reviews, and regulatory agency
examinations—all of which evaluate the quality of the loan portfolio and seek to
identify problem loans. Based on such analysis, management and the board of
directors consider the current allowance to be adequate. Nevertheless,
management’s evaluation is inherently subjective as it requires estimates that
are susceptible to significant change. The Company’s losses will undoubtedly
vary from these estimates, and there is a possibility that charge-offs in future
periods could exceed the allowance for loan losses as estimated at any point
in
time. Management expects loan charge off levels to remain similar to those
experienced in recent periods during the current year. Net charge-offs as a
percentage of average annualized loans was 0.10% during the first three months
of 2006.
The
provision for loan losses for the three months ended March 31, 2006
was
$1,146,000
compared
with $723,000
for the
first quarter of 2005,
an increase
of
59
percent.
The provision reflects building of our allowance for loan losses in correlation
with our strong loan growth. The current period’s provision also includes
$161,000 charged off through the allowance for loan losses for principal
balances of overdrafts. The allowance for loan losses was $20,797,000,
or
1.30
percent
of loans net of unearned income at March 31, 2006
and
$20,025,000,
or
1.30
percent
of outstanding loans at December 31, 2005.
The
current allowance provides 5.04
times
coverage of period end non-performing loans, which totaled $4,123,000,
and 1.30
percent of period end loans. The allowance for loan losses also provides
approximately 13.71 times coverage of first quarter annualized net charge-offs.
Net charge-offs for the first quarter were $374,000, or an annualized 0.10
percent of average loans net of unearned income. For the same period in 2005,
net charge offs were $108,000, or an annualized 0.04 percent, of first quarter
average loans.
Other
real
estate owned includes certain real estate acquired as a result of foreclosure
and property not intended for bank use. As of March 31, 2006,
other
real estate owned was $321,000,
compared
with $379,000
at
December 31, 2005
and
$1,351,000
at the
end of the first quarter of 2005.
Noninterest
Income and Expense
Noninterest
income for the first quarter of 2006
was
$6,035,000,
compared
with $5,280,000
for the
same period in 2005,
an increase
of
$755,000,
or
14.30
percent.
The increase
from
2005
is
primarily attributable to a $267,000, or 9.3 percent, increase in service
charges on deposit accounts, a $222,000, or 39.9 percent, increase in bankcard
services income, a $89,000, or 8.9 percent, increase in secondary mortgage
origination fees, and an $88,000, or 38.5 percent, increase in mutual fund
fees.
In the quarterly comparisons, fees from trust and fiduciary services
increased 13.77
percent,
from $138,000
to
$157,000.
Noninterest
expense for the first quarter of 2006
was
$16,369,000, an increase of $3,226,000, or 24.5 percent, from $13,143,000 for
the same period in the previous year. Salaries and commissions expense increased
$2,084,000, or 27.0 percent, to $9,816,000 from the first quarter of
2005
to the
first quarter of 2006.
This
increase resulted primarily from an increase in full time equivalent employees
gained in the Sun Bancshares acquisition completed in late 2005 and from
increased incentive expenses driven by increased sales volumes of certain
banking products. Information services expense increased $262,000 from the
comparable first quarter of 2005 as the Company continues to expand its
footprint in South Carolina. Largely for the same reason, advertising and public
relations expense was up $219,000, or 46.1 percent, from last year’s first
quarter. Similarly, net occupancy expense increased $219,000, or 27.5 percent,
from the first quarter of 2005, and equipment service contracts expense
increased $108,000 during the first quarter of 2006 compared to the same period
in 2005.
As
described under Recent Accounting Pronouncements in our Annual Report on Form
10-K for the year ended December 31, 2005,
we are
required by Statement of Financial Accounting Standards No. 123R, Share-Based
Payment,
to
measure all employee stock-based compensation using the fair value method and
record stock-based compensation expense in our statement of income. We have
elected to use the “modified prospective method” which requires us to recognize
a fair-value expense for all awards granted, modified or settled beginning
in
the year of adoption. Under Statement No. 123R we have begun to
recognize share-based compensation cost in non-interest expense for stock
options and the employee stock purchase plan in the amounts of $116,000 and
$16,000, respectively. The Company has always expensed the fair-value of
restricted stock grants over the vesting period of each grant.
Capital
Resources and Liquidity
Our
ongoing capital requirements have been met primarily through retained earnings,
less the payment of cash dividends. As of March 31, 2006,
shareholders’ equity was $151,765,000, an increase of $3,362,000, or 2.3
percent, from $148,403,000 at December 31, 2005.
We
are
subject to certain risk-based capital guidelines. Certain ratios measure the
relationship of capital to a combination of balance sheet and off balance sheet
risks. The values of both balance sheet and off balance sheet items are adjusted
to reflect credit risk. Under the guidelines promulgated by the Board of
Governors of the Federal Reserve System, which are substantially similar to
those of the Comptroller of the Currency, Tier 1 capital must be at least 4
percent of risk-weighted assets, while total capital must be at least 8 percent
of risk-weighted assets. Our Tier 1 capital to risk-weighted assets ratio at
March 31, 2006
was 10.14
percent, compared to 10.25 percent at December 31, 2005. The total capital
to
risk-weighted assets ratio was 11.35 percent at the end of the first quarter
of
2006,
compared
with 11.45 at the end of 2005. These ratios have declined slightly primarily
because of the continuing strong loan growth and the corresponding impact on
risk-weighted assets.
In
conjunction with the risk-based ratios, the regulatory agencies have also
prescribed a leverage capital ratio for assessing capital adequacy. The minimum
leverage ratio required for banks is between 3 and 5 percent, depending on
the
institution’s composite rating as determined by its regulators. Our leverage
ratio was 8.15 percent as of March 31, 2006
and 8.58
percent as of December 31, 2005. Our capital ratios currently well exceed the
minimum standards and continue to be in the “well capitalized” regulatory
classifications.
Liquidity
is the ability for us to generate sufficient cash to meet our financial
obligations, which arise primarily from the withdrawal of deposits, extension
of
credit and payment of operating expenses. Asset liquidity is maintained by
the
maturity structure of loans, investment securities and other short-term
investments. Management has policies and procedures governing the length of
time
to maturity on loans and investments. Normally, changes in the earning asset
mix
are of a longer-term nature and are not utilized for day-to-day corporate
liquidity needs.
Our
liabilities provide liquidity on a day-to-day basis. Daily liquidity needs
are
met from deposit levels or from our use of federal funds purchased, securities
sold under agreements to repurchase and other short-term borrowings. Additional
liquidity can be secured from lines of credit extended to us from our
correspondent banks and the Federal Home Loan Bank. Management believes that
its
liquidity position is adequate.
Deposit
and Loan Concentration
We
have no
material concentration of deposits from any single customer or group of
customers. We have no significant portion of our loans concentrated within
a
single industry or group of related industries. Furthermore, we attempt to
avoid
making loans that, in an aggregate amount, exceed 10 percent of total loans
to a
multiple number of borrowers engaged in similar business activities that
could
cause these aggregated loans to be similarly impacted by economic or other
conditions. As of March 31, 2006, there were no aggregated loan concentrations
of this type. There are no material seasonal factors that would have a material
adverse effect on us. We do not have foreign loans or deposits.
Concentration
of Credit Risk
The
Company considers concentrations of credit to exist when, pursuant to regulatory
guidelines, the amounts loaned to a
multiple
number of borrowers engaged in similar business activities which would cause
them to be similarly impacted by
general
economic conditions represents 25 percent of total risk-based capital. Based
on
this criteria, the Company had five such credit concentrations at the end
of the
quarter March 31, 2006, including loans
to
borrowers
engaged
in other activities related to real estate, loans to lessors
of
nonresidential buildings, loans to religious organizations, loans to lessors
of
residential buildings, and loans to borrowers constructing new single family
housing.
Forward-Looking
Statements
Statements
included in Management’s Discussion and Analysis of Financial Condition and
Results of Operations 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 and Exchange Act of 1934,
as
amended. We caution readers that forward-looking statements are estimates
reflecting our judgment based on current information, and 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 rate 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;
and
(9) terrorist activities risk that results in loss of consumer confidence and
economic disruptions.
There
have
been no material changes in our quantitative and qualitative disclosures about
market risk as of March
31, 2006
from that
presented in the Annual Report on Form 10-K for the year ended December 31,
2005.
As
of the
end of the period covered by this report, we carried out an evaluation, under
the supervision and with the participation of management, including our
President and Chief Executive Officer and our Chief Financial Officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures pursuant to Exchange Act Rule 13a-15. Management necessarily applied
its judgment in the process of reviewing these controls and procedures, which,
by their nature, can provide only reasonable assurance regarding management’s
control objectives. Based upon this evaluation, our President and Chief
Executive Officer and our Chief Financial Officer concluded that the our
disclosure controls and procedures were effective as of the end of the period
covered by this Quarterly Report.
There
have
been no significant changes in our internal controls over financial reporting
that occurred during the first quarter of 2006
that
materially affected, or are reasonably likely to materially affect, our internal
controls over financial reporting.
The
design
of any system of controls and procedures is based in part upon certain
assumptions about the likelihood of future events. There can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions, regardless of how remote.
Neither
SCBT Financial Corporation nor its subsidiaries is a party to nor is any of
our
property subject to any material or other pending legal proceedings, other
than
in the ordinary routine proceedings incident to our business.
An
investment in our common shares involves certain risks, including those
identified and described in Item 1A. of our Annual Report of Form 10-K for
the
fiscal year ended December 31, 2005 (“Form 10-K”), as well as cautionary
statements contained in this form 10-Q under the caption “Forward-Looking
Statements” set forth in Part I, Item 2 of this form 10-Q. There has been no
material change in the risk factors previously disclosed in our Form
10-K.
(a)
and
(b) not applicable
(c)
Issuer
Purchases of Equity Securities:
In
February 2004, we announced a program with no formal expiration date to
repurchase up to 250,000 of our common shares. The following table reflects
share repurchase activity during the first quarter of 2006:
Period
|
|
(a)
Total Number of Shares (or Units) Purchased
|
|
|
|
(b)
Average Price Paid per Share (or Unit)
|
|
(c)
Total Number of Shares (or Units) Purchased as Part of Publicly
Announced
Plans or Programs
|
|
(d)
Maximum Number (or Approximate Dollar Value) of Shares (or Units)
that May
Yet Be Purchased Under the Plans or Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
1 - January 31
|
|
|
928
|
*
|
|
|
|
$
|
34.43
|
|
|
--
|
|
|
147,872
|
|
February
1 - February 28
|
|
|
--
|
|
|
|
|
|
--
|
|
|
--
|
|
|
147,872
|
|
March
1 - March 31
|
|
|
1,426
|
*
|
|
|
|
|
34.59
|
|
|
--
|
|
|
147,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,354
|
|
|
|
|
|
|
|
|
--
|
|
|
147,872
|
|
*
These
shares were repurchased under arrangements, authorized by the Company’s
stock-based compensation plans and the Board of Directors, whereby officers
or
directors may sell previously owned Company shares to the Company in order
to
pay for the exercises of stock options or for income taxes owed on vesting
shares of restricted stock. These shares are not purchased under the plan to
purchase 250,000 shares announced in February 2004.
Not
applicable.
Not
applicable.
Not
applicable.
Exhibit
31.1
|
Rule
13a-14(a) Certification of the Principal Executive
Officer
|
|
|
Exhibit
31.2
|
Rule
13a-14(a) Certification of the Principal Financial
Officer
|
|
|
Exhibit
32.1
|
Section
1350 Certification of the Principal Executive Officer
|
|
|
Exhibit
32.2
|
Section
1350 Certification of the Principal Financial
Officer
|
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
|
|
|
|
SCBT
FINANCIAL CORPORATION
(Registrant)
|
|
|
|
Date: May
10, 2006 |
|
/s/ Robert
R. Hill, Jr. |
|
President
and Chief Executive Officer |
|
|
|
|
|
|
|
|
|
|
Date: May
10, 2006 |
|
/s/ Richard
C. Mathis |
|
Executive
Vice President and
Chief
Financial Officer
|
|
|
Exhibit
Index
Exhibit
No.
|
|
Description
|
|
|
|
31.1
|
|
Rule
13a-14(a) Certification of the Principal Executive
Officer
|
|
|
|
31.2
|
|
Rule
13a-14(a) Certification of the Principal Financial
Officer
|
|
|
|
32.1
|
|
Section
1350 Certification of the Principal Executive
Officer
|
|
|
|
32.2
|
|
Section
1350 Certification of the Principal Financial
Officer
|