SCBT Financial Corporation and Peoples Bancorporation to Merge

Ranks 6th in deposit market share in South Carolina;
In-market acquisition bodes well for the creation of synergies and economies of scale;
Strategically connects Greenville, SC to northeastern Georgia market;
Cultural alignment reduces integration risks

COLUMBIA, SC and EASLEY, SC – December 20, 2011 – SCBT Financial Corporation (NASDAQ: SCBT), the holding company for SCBT, N.A., and Peoples Bancorporation, Inc. (OTCBB:PBCE) founded in 1986, the holding company of Peoples National Bank, Bank of Anderson, N.A., and Seneca National Bank, jointly announced today the signing of a definitive merger agreement under which SCBT will acquire Peoples Bancorporation.   Founded in 1933, SCBT is the largest publicly traded bank headquartered in South Carolina.

Upon completion of the transaction, the combined company will have approximately $4.5 billion in assets, $3.8 billion in total deposits, and $3.2 billion in total loans.  The merger agreement has been approved by the board of directors of each company.  The transaction is expected to close in the second quarter of 2012 and is subject to customary conditions, including approval by Peoples Bancorporation shareholders, and regulatory approvals. 

We have had a very good and long-term relationship with Peoples Bancorporation, said Robert R. Hill, Jr., president and CEO of SCBT.  Peoples Bancorporation has been committed to the communities of the upstate of South Carolina for over 25 years and we look forward to continuing this legacy.  Our companies have similar cultures making this a natural partnership and one that will serve our customers, employees and shareholders very well.

All of our directors support the decision to merge with SCBT because we know this is a great opportunity to further improve and expand customer service. We believe that this merger will make our great little bank a bigger and better bank while growing shareholder value, said George B. Bud Nalley, Jr., chairman of the board, Peoples Bancorporation, Inc.  We expect the merger to provide our shareholders with the opportunity for an increase in stock value and resumption of dividends, as well as the opportunity to share in the growth of a dynamic company in the years ahead.  We are honored to be a part of the exciting merger of two great companies that share similar feelings of deep appreciation of employees and dedication to customer satisfaction.”

Upon completion of the merger, the combined company will operate 78 locations in SC, NC and Georgia.  Post-merger the company will have 28 offices in counties along the I-85 corridor connecting Charlotte, Greenville and Atlanta and the combined company will be the 6th largest bank in South Carolina by deposit market share and the 7th largest in the Upstate. 

We are fortunate to partner with SCBT, and we feel that this merger is in our shareholders’ best interests. SCBT has been well known to our company for quite some time, and we could not find a better fit in terms of culture, philosophy, financial stability, commitment to communities and access to a statewide branch network and beyond,” commented L. Andrew Westbrook, III, president and CEO of Peoples Bancorporation, Inc. Several factors were considered on behalf of our shareholders in making this important decision, including the opportunity our shareholders will have to benefit from the future growth of this dynamic company.

I am excited about the opportunity to join with SCBT, which has clearly been one of the best run banks in South Carolina for the past few years, said Robert E. Dye, Jr., CFO of Peoples Bancorporation, Inc. Over our twenty-five year history, the Peoples family of banks has consistently been committed to providing an unusually pleasant banking experience for our customers, and we fully expect that to continue.  I am proud to see us take this important step forward.

Under the terms of the agreement, Peoples Bancorporation shareholders will receive 0.1413 shares of SCBT common stock per share of PBCE common stock, subject to certain adjustments.  The stock issuance is valued at approximately $28.4 million in the aggregate, based on 7,105,563 shares of Peoples Bancorporation common stock outstanding.

Keefe, Bruyette & Woods, Inc. served as financial advisor and Wachtell, Lipton, Rosen & Katz provided legal counsel to SCBT.  Scott & Stringfellow served as financial advisor and Haynsworth Sinkler Boyd, P.A. served as legal counsel to Peoples Bancorporation. 

SCBT Financial Corporation
SCBT Financial Corporation, Columbia, South Carolina is a registered bank holding company incorporated under the laws of South Carolina.  SCBT Financial Corporation, the largest publicly traded bank headquartered in South Carolina, consists of SCBT, N.A.; NCBT, a Division of SCBT, N.A.; and Community Bank & Trust, a Division of SCBT, N.A.  Providing financial services for over 77 years, SCBT Financial Corporation operates 70 locations in 16 South Carolina counties, 10 North Georgia counties, and in Mecklenburg County in North Carolina.  Named in Forbes as one of the 100 Most Trustworthy Companies in America for more than 5 years, SCBT Financial Corporation has assets of approximately $4.0 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. 

Peoples Bancorporation, Inc.
Founded in 1986, Peoples Bancorporation, Inc. has been serving the financial needs of the upstate for more than 25 years.  Peoples Bancorporation is the holding company for The Peoples National Bank which operates five locations in Easley, Pickens, Powdersville, and Greenville, South Carolina; Bank of Anderson, N.A. which operates two locations in Anderson, South Carolina; and Seneca National Bank which operates one location in Seneca, South Carolina.  Peoples Bancorporation has assets of approximately $545.5 million and its stock is traded under the symbol PBCE.  More information can be found at www.peoplesbc.com.