UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20529
FORM 11-K
(Mark one)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 For the fiscal year ended December 31, 2003
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 For the transition period from ______________ to ______________
Commission File Number: 001-12669
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
SOUTH CAROLINA BANK AND TRUST EMPLOYEES' SAVINGS PLAN
950 John C. Calhoun Drive, S. E.
Orangeburg, South Carolina 29115
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
SCBT FINANCIAL CORPORATION
520 Gervais Street
Columbia, South Carolina 29201
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
=============================
FINANCIAL STATEMENTS
WITH SUPPLEMENTARY INFORMATION
YEARS ENDED DECEMBER 31, 2003 AND 2002
AND
INDEPENDENT AUDITORS' REPORT
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
=======================
TABLE OF CONTENTS
-----------------
PAGE
-----
Independent Auditors' Report 2
Statements of Net Assets Available for Benefits 3-4
Statements of Changes in Net Assets Available for Benefits 5-6
Notes to Financial Statements 7-11
Supplementary Information:
Schedule of Assets (Held at End of Year) 13
1
INDEPENDENT AUDITORS' REPORT
To the Trustees of the
South Carolina Bank and Trust Employees' Savings Plan
We have audited the accompanying statements of net assets available for benefits
of the South Carolina Bank and Trust Employees' Savings Plan as of December 31,
2003 and 2002, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the South
Carolina Bank and Trust Employees' Savings Plan as of December 31, 2003 and
2002, and the changes in net assets available for benefits for the years then
ended, in conformity with accounting principles generally accepted in the United
States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedule of Assets (Held
at End of Year) as of December 31, 2003, is presented for the purpose of
additional analysis and is not a required part of the basic financial statements
but is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosures under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
J. W. Hunt and Company, LLP
Columbia, South Carolina
June 21, 2004
2
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, DECEMBER 31, 2003
-----------------------------------------------------------------------------------------------------------------------------
INTER-
GUARANTEED INDEXED ASSET S&P 500 ALL CAP NATIONAL
INTEREST BOND MANAGER INDEX GROWTH EQUITY
ACCOUNT FUND FUND FUND FUND FUND
------------ ----------- ---------- ----------- ----------- ----------
ASSETS:
Investments, at fair value:
Mutual funds $ - $ 274,325 $ 2,013,731 $ 2,651,385 $ 1,348,379 $ 230,386
SCBT Financial Corporation stock - - - - - -
Certificate of deposit 946,725 - - - - -
Money market funds - - - - - -
Investments, at contract value:
New York Life Insurance Company,
Investment contract 2,026,192 - - - - -
-------------------------------------------------------------------------------------------
Total investments 2,972,917 274,325 2,013,731 2,651,385 1,348,379 230,386
-------------------------------------------------------------------------------------------
Receivables:
Employer's contribution 44,718 19,015 40,818 72,207 63,099 10,466
Interest 7,717 - - - - -
-------------------------------------------------------------------------------------------
Total receivables 52,435 19,015 40,818 72,207 63,099 10,466
-------------------------------------------------------------------------------------------
Total assets 3,025,352 293,340 2,054,549 2,723,592 1,411,478 240,852
LIABILITIES:
Benefits payable - - - - - -
-------------------------------------------------------------------------------------------
Net assets available
for benefits $ 3,025,352 $ 293,340 $ 2,054,549 $ 2,723,592 $ 1,411,478 $ 240,852
===========================================================================================
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, DECEMBER 31, 2003
--------------------------------------------------------------------------
SCBT
FINANCIAL
CORPORATION
STOCK TOTAL
------------- ------------
ASSETS:
Investments, at fair value:
Mutual funds $ - $ 6,518,206
SCBT Financial Corporation stock 2,248,709 2,248,709
Certificate of deposit - 946,725
Money market funds 11,890 11,890
Investments, at contract value:
New York Life Insurance Company,
Investment contract - 2,026,192
-------------------------------
Total investments 2,260,599 11,751,722
-------------------------------
Receivables:
Employer's contribution 49,665 299,988
Interest - 7,717
-------------------------------
Total receivables 49,665 307,705
-------------------------------
Total assets 2,310,264 12,059,427
LIABILITIES:
Benefits payable 1,377 1,377
-------------------------------
Net assets available
for benefits $ 2,308,887 $12,058,050
===============================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
3
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, DECEMBER 31, 2002
------------------------------------------------------------------------------------------------------------------------------
GUARANTEED INDEXED ASSET S&P 500 ALL CAP
INTEREST BOND MANAGER INDEX GROWTH
ACCOUNT FUND FUND FUND FUND
---------- ---------- ---------- ---------- ---------
ASSETS:
Investments, at fair value:
Mutual funds $ - $ 135,368 $1,762,405 $1,871,617 $ 817,155
SCBT Financial Corporation stock - - - - -
Money market funds - - - - -
Investments, at contract value:
New York Life Insurance Company,
Investment contract 2,863,712 - - - -
----------------------------------------------------------------------------
Total investments 2,863,712 135,368 1,762,405 1,871,617 817,155
----------------------------------------------------------------------------
Receivables:
Employer's contribution 31,625 7,024 36,124 68,600 56,429
Interest or dividends - - - - -
----------------------------------------------------------------------------
Total receivables 31,625 7,024 36,124 68,600 56,429
----------------------------------------------------------------------------
Total assets 2,895,337 142,392 1,798,529 1,940,217 873,584
LIABILITIES:
Benefits payable - - - - -
----------------------------------------------------------------------------
Net assets available for benefits $ 2,895,337 $ 142,392 $1,798,529 $1,940,217 $ 873,584
============================================================================
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, DECEMBER 31, 2002
--------------------------------------------------------------------------------------------------
INTER- SCBT
NATIONAL FINANCIAL
EQUITY CORPORATION
FUND STOCK TOTAL
--------- ----------- ---------
ASSETS:
Investments, at fair value:
Mutual funds $ 132,877 $ - $4,719,422
SCBT Financial Corporation stock - 1,697,904 1,697,904
Money market funds - 10,708 10,708
Investments, at contract value:
New York Life Insurance Company,
Investment contract - - 2,863,712
---------------------------------------------
Total investments 132,877 1,708,612 9,291,746
---------------------------------------------
Receivables:
Employer's contribution 7,152 41,664 248,618
Interest or dividends - 25 25
---------------------------------------------
Total receivables 7,152 41,689 248,643
---------------------------------------------
Total assets 140,029 1,750,301 9,540,389
LIABILITIES:
Benefits payable - 2,013 2,013
---------------------------------------------
Net assets available for benefits $ 140,029 $ 1,748,288 $9,538,376
=============================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
4
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2003
------------------------------------------------------------------------------------------------------------------------------
GUARANTEED INDEXED ASSET S&P 500 ALL CAP
INTEREST BOND MANAGER INDEX GROWTH
ACCOUNT FUND FUND FUND FUND
---------- -------- ---------- ---------- ----------
Additions to net assets attributed to:
Investment income:
Interest $ 138,246 $ - $ - $ - $ -
Dividends - 6,742 40,071 29,426 -
Net appreciation in fair value of investments - 138 246,879 541,410 268,357
--------------------------------------------------------------------------
Total investment income 138,246 6,880 286,950 570,836 268,357
--------------------------------------------------------------------------
Contributions:
Employer's 44,718 19,015 40,818 72,207 63,099
Participants' 179,178 60,086 139,694 276,585 247,439
--------------------------------------------------------------------------
Total contributions 223,896 79,101 180,512 348,792 310,538
--------------------------------------------------------------------------
Total additions 362,142 85,981 467,462 919,628 578,895
--------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 338,825 3,620 111,034 96,616 34,851
Administrative expenses 10,717 - - - -
--------------------------------------------------------------------------
Total deductions 349,542 3,620 111,034 96,616 34,851
--------------------------------------------------------------------------
Net increase prior to interfund transfers 12,600 82,361 356,428 823,012 544,044
Interfund transfers 117,415 68,587 (100,408) (39,637) (6,150)
--------------------------------------------------------------------------
Net increase 130,015 150,948 256,020 783,375 537,894
Net assets available for benefits:
Beginning of year 2,895,337 142,392 1,798,529 1,940,217 873,584
--------------------------------------------------------------------------
End of year $ 3,025,352 $ 293,340 $2,054,549 $2,723,592 $1,411,478
==========================================================================
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2003
--------------------------------------------------------------------------------------------------
INTER- SCBT
NATIONAL FINANCIAL
EQUITY CORPORATION
FUND STOCK TOTAL
---------- ----------- ------------
Additions to net assets attributed to:
Investment income:
Interest $ - $ 71 $ 138,317
Dividends 3,273 49,084 128,596
Net appreciation in fair value of investments 49,679 447,104 1,553,567
--------------------------------------------
Total investment income 52,952 496,259 1,820,480
--------------------------------------------
Contributions:
Employer's 10,466 49,665 299,988
Participants' 43,767 179,408 1,126,157
--------------------------------------------
Total contributions 54,233 229,073 1,426,145
--------------------------------------------
Total additions 107,185 725,332 3,246,625
--------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 7,081 118,739 710,766
Administrative expenses - 5,468 16,185
--------------------------------------------
Total deductions 7,081 124,207 726,951
--------------------------------------------
Net increase prior to interfund transfers 100,104 601,125 2,519,674
Interfund transfers 719 (40,526) -
--------------------------------------------
Net increase 100,823 560,599 2,519,674
Net assets available for benefits:
Beginning of year 140,029 1,748,288 9,538,376
--------------------------------------------
End of year $ 240,852 $ 2,308,887 $12,058,050
============================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
5
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2002
----------------------------------------------------------------------------------------------------------------------------------
GUARANTEED INDEXED ASSET S&P 500 ALL CAP
INTEREST BOND MANAGER INDEX GROWTH
ACCOUNT FUND FUND FUND FUND
----------- ----------- ----------- ------------- ----------
Additions to net assets attributed to:
Investment income:
Interest $ 141,100 $ - $ - $ - $ -
Dividends - 4,183 34,870 28,003 -
Net appreciation in fair value of investments - 2,072 - - -
-----------------------------------------------------------------------------
Total investment income 141,100 6,255 34,870 28,003 -
-----------------------------------------------------------------------------
Contributions:
Employer's 31,693 7,024 36,440 68,808 56,486
Participants' 115,716 30,017 137,076 259,020 232,954
-----------------------------------------------------------------------------
Total contributions 147,409 37,041 173,516 327,828 289,440
-----------------------------------------------------------------------------
Total additions 288,509 43,296 208,386 355,831 289,440
-----------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 69,841 - 19,085 52,656 23,080
Net depreciation in fair value of investments - - 268,767 572,929 353,230
Administrative expenses 8,863 - - - -
-----------------------------------------------------------------------------
Total deductions 78,704 - 287,852 625,585 376,310
-----------------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers 209,805 43,296 (79,466) (269,754) (86,870)
Interfund transfers 408,832 20,605 (47,164) (203,042) (124,922)
-----------------------------------------------------------------------------
Net increase (decrease) 618,637 63,901 (126,630) (472,796) (211,792)
Net assets available for benefits:
Beginning of year 2,276,700 78,491 1,925,159 2,413,013 1,085,376
-----------------------------------------------------------------------------
End of year $ 2,895,337 $ 142,392 $1,798,529 $1,940,217 $ 873,584
=============================================================================
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2002
--------------------------------------------------------------------------------------------------
INTER- SCBT
NATIONAL FINANCIAL
EQUITY CORPORATION
FUND STOCK TOTAL
--------- ----------- ---------
Additions to net assets attributed to:
Investment income:
Interest $ - $ 103 $ 141,203
Dividends 2,299 38,955 108,310
Net appreciation in fair value of investments - 431,920 433,992
----------------------------------------------
Total investment income 2,299 470,978 683,505
----------------------------------------------
Contributions:
Employer's 7,152 41,664 249,267
Participants' 30,445 167,515 972,743
----------------------------------------------
Total contributions 37,597 209,179 1,222,010
----------------------------------------------
Total additions 39,896 680,157 1,905,515
----------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 10,859 67,125 242,646
Net depreciation in fair value of investments 7,853 - 1,202,779
Administrative expenses - 3,681 12,544
----------------------------------------------
Total deductions 18,712 70,806 1,457,969
----------------------------------------------
Net increase (decrease) prior to
interfund transfers 21,184 609,351 447,546
Interfund transfers (5,196) (49,113) -
----------------------------------------------
Net increase (decrease) 15,988 560,238 447,546
Net assets available for benefits:
Beginning of year 124,041 1,188,050 9,090,830
----------------------------------------------
End of year $ 140,029 $ 1,748,288 $9,538,376
==============================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
6
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
-----------------------
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
NOTE A - DESCRIPTION OF PLAN:
The following description of the South Carolina Bank and Trust (a wholly-owned
subsidiary of SCBT Financial Corporation) Employees' Savings Plan ("Plan")
provides only general information. Participants should refer to the Plan
agreement for a more complete description of the Plan's provisions.
GENERAL:
The Plan is a contributory defined contribution plan covering all employees
of South Carolina Bank and Trust, N.A. (the "Company") and all affiliates
of the Company who work 20 or more hours per week, have six months of
service and are age twenty-one or older. It is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS:
Each year, participants may contribute up to 50 percent of pretax annual
base compensation, as defined in the Plan. Participants may also contribute
amounts representing distributions from other qualified retirement plans.
Participants direct the investment of their contributions into various
investment options offered by the Plan. The Company contributes 50 percent
of the first 4 percent of base compensation that a participant contributes
to the Plan up to a maximum matching contribution of 2 percent of base
compensation. Employer contributions may be made from current or
accumulated net profits. Contributions are subject to certain limitations.
PARTICIPANT ACCOUNTS:
Each participant's account is credited with the participant's contribution,
the Company's matching contribution and allocations of Plan earnings.
Allocations are based on account balances, as defined by the Plan. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's account.
VESTING:
Participants' accounts are fully vested.
PAYMENT OF BENEFITS:
On termination of service due to death, disability, retirement, or other
reasons, a participant may receive a lump-sum amount equal to the value of
his or her account.
7
SOUTH CAROLINA BANK AND TRUST EMPLOYEE'S SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
NOTE A - DESCRIPTION OF PLAN (CONTINUED):
INVESTMENT OPTIONS:
Upon enrollment in the Plan, a participant may direct employee
contributions in any of the following investment options:
GUARANTEED INTEREST ACCOUNT - Funds are invested in guaranteed
investment contracts (GIC) with an insurance company and
certificate of deposit with the Company.
INDEXED BOND FUND - Funds are invested primarily in fixed income
securities of the Citigroup Broad Investment Grade Bond Index.
ASSET MANAGER FUND - Funds are invested primarily in domestic and
foreign common stocks, U.S. Treasuries and agencies,
investment-grade corporate bonds, mortgage pass-through
securities, asset-backed securities and money market instruments.
S&P 500 Index Fund - Funds are invested in common stocks replicating
the Standard and Poor's 500 Composite Index.
ALL CAP GROWTH FUND - Funds are invested primarily in stocks issued
by companies with investment characteristics such as:
participation in expanding markets, increasing return on
investment, increasing unit sales volume, and higher growth in
revenue and earnings per share relative to the average of common
stocks comprising indices such as the Standard and Poor's 500
Composite Index.
INTERNATIONAL EQUITY FUND - Funds are invested primarily in non-U.S.
common stocks with an emphasis on large, well-established
companies. A value approach is used for country selection, with a
broad diversification of holdings within each country. Stocks of
both established economies and emerging market countries may be
included. As further described in Note I, the International
Equity Fund was liquidated effective January 26, 2004.
SCBT FINANCIAL CORPORATION STOCK FUND - The SCBT Financial Corporation
Stock Fund invests only in SCBT Financial Corporation common
shares and money market equivalents.
NOTE B - SUMMARY OF ACCOUNTING POLICIES:
BASIS OF ACCOUNTING:
The financial statements of the Plan are prepared using the accrual method of
accounting in accordance with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION:
The Plan's investments are stated at fair value except for its
benefit-responsive investment contract, which is valued at contract value (Note
D). Quoted market prices are used to value investments. Shares of mutual funds
are valued at the net asset value of shares held by the Plan at year end.
8
SOUTH CAROLINA BANK AND TRUST EMPLOYEE'S SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
NOTE B - SUMMARY OF ACCOUNTING POLICIES (CONTINUED):
INVESTMENT VALUATION (CONTINUED):
The Plan provides for various investment options in any combination of stocks or
mutual funds. Investment securities are exposed to various risks, such as
interest rate, market and credit risks. Due to the level of risk associated with
certain investment securities and the level of uncertainty related to changes in
the value of investment securities, it is at least reasonably possible that
changes in the values of investment securities will change in the near term and
that such changes could materially affect participants' account balances and the
amounts reported in the statement of net assets available for benefits and the
statement of changes in net assets available for benefits.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
PAYMENT OF BENEFITS:
Benefits are recorded when paid.
ESTIMATES:
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and changes therein and
the disclosure or contingent assets and liabilities. Accordingly, actual results
could differ from those estimates.
NOTE C - INVESTMENTS:
The following presents investments that represent 5 percent or more of the
Plan's net assets:
December 31,
-----------------------------
2003 2002
----------- -----------
MainStay Asset Manager Fund, 164,790 and 165,174
shares, respectively $ 2,013,731 $ 1,762,405
MainStay S&P 500 Index Fund, 103,489 and 92,700 shares,
respectively 2,651,385 1,871,617
MainStay All Cap Growth Fund, 69,077 and 53,235
shares, respectively 1,348,379 817,155
SCBT Financial Corporation common stock, 74,932 and
70,746 shares, respectively 2,248,709 1,697,904
Investment Contract with New York Life Insurance
Company, #11433 2,026,192 2,863,712
Certificate of deposit, South Carolina Bank and Trust, N.A. 946,725 -
9
SOUTH CAROLINA BANK AND TRUST EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE C - INVESTMENTS (CONTINUED):
During 2003 and 2002, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value as follows:
2003 2002
------------ -------------
Mutual funds $ 1,106,463 $ (1,200,707)
Common stock 447,104 431,920
-------------------------------
Net appreciation (depreciation) 1,553,567 (768,787)
===============================
The number of employees participating in each of the Plan's investment options
at December 31, 2003 and 2002, is as follows:
2003 2002
---- ----
Fixed Income Fund 172 141
Indexed Bond Fund 107 74
Asset Manager Fund 217 217
S&P 500 Index Fund 249 270
All Cap Growth Fund 192 195
International Equity Fund 65 60
SCBT Financial Corporation Stock Fund 223 227
NOTE D - INVESTMENT CONTRACT WITH INSURANCE COMPANY:
The Plan has a benefit-responsive investment contract with New York Life
Insurance Company (New York Life). New York Life, as the Plan's custodian,
maintains the assets in a pooled account. The account is credited with earnings
on the underlying investments and charged for participant withdrawals and
administrative expenses charged by New York Life. The contract is included in
the financial statements at contract value as reported to the Plan by New York
Life. Contract value represents contributions made under the contract, plus
earnings, less participant withdrawals and administrative expenses. Participants
may ordinarily direct the withdrawal or transfer of all or a portion of their
investment at contract value.
There are no reserves against contract value for credit risk of the contract
issuer or otherwise. The average yield and crediting interest rates ranged from
4.73 percent to 7.20 percent for 2003 and 2002. The crediting interest rates are
based on a formula agreed upon with the issuer and are reviewed on an annual
basis for resetting.
NOTE E - RELATED PARTY TRANSACTIONS:
Certain Plan investments are shares of SCBT Financial Corporation common stock
held by the Plan sponsor's Trust Department. Fees of $5,468 were paid by the
Plan to the Trust Department for the year ended December 31, 2003. Dividends
received from SCBT Financial Corporation were $49,110 for the year ended
December 31, 2003.
10
SOUTH CAROLINA BANK AND TRUST EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE E - RELATED PARTY TRANSACTIONS (CONTINUED):
The Plan has also invested in a three-year certificate of deposit with South
Carolina Bank and Trust, N.A. maturing April 1, 2006. The Plan earned $21,674 of
interest on the certificate of deposit for the year ended December 31, 2003. As
of December 31, 2003, the certificate of deposit was earning interest at a rate
of 3.31 percent.
NOTE F - PLAN TERMINATION:
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants would become 100 percent vested in their accounts.
NOTE G - TAX STATUS:
The Internal Revenue Service has determined and informed the Company by a letter
dated November 4, 1992, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC). Although
the Plan has been amended since receiving the determination letter, the Plan
administrator and the Plan's tax counsel believe that the Plan is designed and
is currently being operated in compliance with the applicable requirements of
the IRC.
NOTE H - PLAN OPERATING COSTS:
The Company pays certain operating costs of the Plan such as legal, audit, and
administrative fees.
NOTE I -SUBSEQUENT EVENTS:
The Mainstay International Equity Fund was liquidated effective January 26,
2004. The American Funds EuroPacific Growth Fund became a replacement investment
option as of April 1, 2004 .
Effective April 1, 2004, the Company's contribution rate increased to 50 percent
of the first 6 percent of base compensation that a participant contributes to
the Plan up to a maximum matching contribution of 3 percent of base
compensation.
11
SUPPLEMENTARY INFORMATION
12
SOUTH CAROLINA BANK AND TRUST
EMPLOYEES' SAVINGS PLAN
-----------------------
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2003
------------------------------------------------------------------------------------------------------------------------------
IDENTITY OF DESCRIPTION OF INVESTMENT
ISSUE, BORROWER, INCLUDING MATURITY DATE, RATE OF
LESSOR, OR SIMILAR INTEREST, COLLATERAL, PAR OR CURRENT
PARTY MATURITY VALUE VALUE
------------------------------------------------------------------------------------------------------------------------------
New York Life Insurance Company Guaranteed Investment Contract #11433 $ 2,026,192
New York Life Investment Management LLC MainStay Indexed Bond Fund, 25,030 shares 274,325
New York Life Investment Management LLC MainStay Asset Manager Fund, 164,790 shares 2,013,731
New York Life Investment Management LLC MainStay S&P 500 Index Fund, 103,489 shares 2,651,385
New York Life Investment Management LLC MainStay All Cap Growth Fund, 69,077 shares 1,348,379
New York Life Investment Management LLC MainStay International Equity Fund, 21,234 shares 230,386
*SCBT Financial Corporation 74,932 common shares 2,248,709
Federated Prime Obligation Principal Fund Money Market Fund 11,890
*South Carolina Bank and Trust, N.A. Certificate of Deposit 946,725
Note: Cost information is not required for participant-directed investments.
* Indicates a party in interest
13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
plan trustees have duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
South Carolina Bank and Trust Employees' Savings Plan
Date: June 25, 2004 /s/ Richard C. Mathis
----------------------
Richard C. Mathis
Trustee
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION LOCATION
---------- ---------------------------- --------------
23 Independent Auditors' Consent Filed herewith