SCBT Financial Corporation and The Savannah Bancorp, Inc. to Merge

SAVANNAH, GA – August 8, 2012 – SCBT Financial Corporation (NASDAQ: SCBT) and The Savannah Bancorp, Inc. (NASDAQ: SAVB) jointly announced today the signing of a definitive merger agreement under which SCBT will acquire The Savannah Bancorp, Inc. for a total value of approximately $67.1 million.  

Founded in 1990, The Savannah Bancorp, Inc. operates two bankingsubsidiaries, The Savannah Bank and Bryan Bank & Trust, whichcollectively have 11 locations in South Carolina and Georgia.  SavannahBancorp also operates Minis & Co., Inc., a registered investmentadvisor. 

“The Savannah Bancorp team has built a strong community bank with agreat reputation and excellent market share. We have known and respectedThe Savannah Bancorp for quite some time and look forward to continuingtheir legacy of service to the community.  The cultures of our twoorganizations are very similar and we believe this partnership is agreat opportunity for the customers, employees and shareholders of bothcompanies,” said Robert R. Hill, Jr., president and CEO, SCBT FinancialCorporation.  

Upon completion of the transaction, the combined company will haveapproximately $5.3 billion in total assets, $4.5 billion in totaldeposits, $3.8 billion in total loans, and a network of 87 branches inthe Carolinas and Georgia.  The two companies currently serve fourcommon counties in South Carolina and Georgia, where, on a pro formabasis, the combined company will have $1.2 billion in deposits earningit the #3 ranking in market share (source: SNL Financial). Minis &Co., Inc., combined with SCBT’s existing Wealth Management Group, willhave total assets under management of approximately $1.6 billion.   

“We are pleased and excited to be joining forces with such ahigh-performing and well capitalized banking company.  We believe thiscombination will be a win-win for our respective shareholders, and willenable our talented staff to continue to focus on what they do best ~serving our communities,” said J. Curtis Lewis, III, Chairman of theBoard of The Savannah Bancorp, Inc.

We have respected SCBT as a competitor and peer for many years and haveadmired their ability to be successful throughout this economicdownturn, said John C. Helmken, II, president and CEO of The SavannahBancorp, Inc.  Now we bring that same admiration and respect to apartnership which joins two like-minded management teams and culturestogether.  We believe this synergy of similar values toward employees,customers, communities and shareholders aligns so well that our twocompanies combined are more powerful as one.” 

The merger agreement has been unanimously approved by the board ofdirectors of each company.  The transaction is expected to close in thefourth quarter of 2012 and is subject to customary conditions, includingapproval by both SCBT and SAVB shareholders.   At closing, The SavannahBancorp will be merged into SCBT Financial Corporation. 

Under the terms of the agreement, shareholders of The Savannah Bancorp,Inc. will receive 0.2503 shares of SCBT common stock for each share ofSAVB common stock.  The stock issuance is valued at approximately $67.1million in the aggregate, based on 7,199,237 shares of SAVB common stockoutstanding and on SCBT’s August 7, 2012 closing stock price of $37.21.

Keefe, Bruyette & Woods, Inc. served as financial advisor andWachtell, Lipton, Rosen & Katz provided legal counsel to SCBTFinancial Corporation.  SunTrust Robinson Humphrey served as financialadvisor and FIG Partners, LLC rendered a fairness opinion, to TheSavannah Bancorp, Inc.  Sandler O’Neill & Partners, LP also assistedThe Savannah Bancorp, Inc. with the transaction.  Alston & Bird LLPand Ellis, Painter, Ratterree & Adams LLP served as legal counselto The Savannah Bancorp, Inc.