An Update on Economic ConditionsRaymond Owens

February 15, 2012

3

Real Gross Domestic Product

Source: Bureau of Economic Analysis/Haver Analytics

2010 Q4 Q1 Q2 Q3 Q4

CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]:

Gross Domestic Product 2.3 0.4 1.3 1.8 2.8

Personal Consumption Expenditures 3.6 2.1 0.7 1.7 2.0

Nonresidential Fixed Investment 8.7 2.1 10.3 15.7 1.7Structures 10.5 -14.3 22.6 14.4 -7.2Equipment & Software 8.1 8.7 6.2 16.2 5.2…Contribution to Real GDP Growth -1.8 0.3 -0.3 -1.4 1.9

Residential Fixed Investment 2.5 -2.4 4.2 1.3 10.9

Exports of Goods & Services 7.8 7.9 3.6 4.7 4.7Imports of Goods & Services -2.3 8.3 1.4 1.2 4.4

Final Sales to Domestic Purchasers 2.7 0.4 1.3 2.7 0.9

LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2005) Dollars]:

Change in Private Inventories 38.3 49.1 39.1 -2.0 56.0

2011

Government Consumption Expenditures & Gross Investment

-2.8 -5.9 -0.9 -0.1 -4.6

-800

-700

-600

-500

-400

-300

-200

-100

0

100

200

300

400

500

-800

-700

-600

-500

-400

-300

-200

-100

0

100

200

300

400

500

2006 2007 2008 2009 2010 2011 2012 2013

4

Quarterly average of monthly changes, thousands of persons

Jan.

Nonfarm Payroll Employment

Source: Bureau of Labor Statistics/Haver Analytics

Jan. 243Dec. 203Nov. 157Oct. 112Sep. 202

Monthly Change

5

Personal Income & Expenditures

Source: Bureau of Economic Analysis/Haver Analytics

-6

-4

-2

0

2

4

6

-6

-4

-2

0

2

4

6

2006 2007 2008 2009 2010 2011 2012 2013

12 Month % Change

Real Personal Consumption Expenditure

Real Personal Income

Month over Month % Change

Oct. Nov. Dec.Income 0.4 0.1 0.4Expenditures 0.1 0.1 -0.1

Dec.

6

2

4

6

8

10

12

14

16

18

20

22

2

4

6

8

10

12

14

16

18

20

22

2006 2007 2008 2009 2010 2011 2012 2013

Autos and Light Trucks

Light Trucks

Autos

Jan.14.1 mil.

Sales of Automobiles & Light TrucksMillions of Vehicles

Source: Bureau of Economic Analysis/Haver Analytics

7

New & Existing Single-Family Home Sales

Millions of Homes

Source: Census Bureau, National Association of Realtors, & Haver Analytics

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

2006 2007 2008 2009 2010 2011 2012 2013

Millions of Homes

Existing Home Sales(Left Axis)

New Home Sales(Right Axis)

Dec.4.1 mln.

0.3 mln.

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2006 2007 2008 2009 2010 2011 2012 2013

8

Housing Starts

Single-Family Building Permits & Housing Starts

Source: Census Bureau/Haver Analytics

Millions of Units

Building Permits

Dec.

9

Private Multi-Family Starts & Building Permits

Source: Census Bureau/Haver Analytics

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2006 2007 2008 2009 2010 2011 2012 2013

Millions

Permits

Starts

December (millions)Permits 0.24Starts 0.19

Dec.

Net Absorptions & Employment

Source: Torto Wheaton, Bureau of Labor Statistics, & Haver Analytics

Thousands of Employees, Quarterly Averages Millions of Square Feet

Notes: Office employment is the sum of employment in information, financial activities, and professional and business services.

10

-50

-40

-30

-20

-10

0

10

20

30

40

50

-250

-200

-150

-100

-50

0

50

100

150

200

250

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Net Absorptions,Office Buildings

(Right Axis)

Changes in Employment(Left Axis)

Office Vacancies & Rents

Source: Torto Wheaton Research 11

22

25

28

31

34

37

40

43

46

2

4

6

8

10

12

14

16

18

20

2000 2002 2004 2006 2008 2010 2012

Percent Index

Vacancy Rate(Left Axis)

Torto WeatonReal Rent Index

(Right Axis)

Retail Vacancies & Rents

Source: Torto Wheaton Research 12

18

20

22

24

26

2

4

6

8

10

12

14

2000 2002 2004 2006 2008 2010 2012

Percent Index

Vacancy Rate(Left Axis)

Torto WeatonReal Rent Index

(Right Axis)

Industrial Vacancies & Rents

Source: Torto Wheaton Research

13

Percent Index

Vacancy Rate(Left Axis)

Torto WeatonReal Rent Index

(Right Axis)

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

4

6

8

10

12

14

16

18

20

2000 2002 2004 2006 2008 2010 2012

South Carolina Existing Home Sales

Source: National Association of Realtors/Haver Analytics

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

50

60

70

80

90

100

110

120

130

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SAAR

, Tho

usan

ds

SAAR

, Tho

usan

ds

South Carolina (Left Axis) U.S. (Right Axis)

3Q: 2011US: 4,880,000

SC: 69,600

South Carolina House Price Index—FHFA

Source: Federal Housing Finance Agency/Haver Analytics

-9.0

-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

15.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

YoY

% C

hg

U.S.

South Carolina

3Q: 2011US: -4.3%SC: -4.9%

South Carolina Building PermitsSingle-Family Homes

Source: US Census Bureau/Haver Analytics

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

YoY

% C

hg3-

mon

th m

ovin

g av

erag

e

U.S.

South Carolina

December 2011US: 2.5%SC: 9.1%

South Carolina Housing Starts

Source: Bank of Tokyo-Mitsubishi UFJ/Haver Analytics

0

500

1000

1500

2000

2500

0

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SAAR

, tho

usan

ds

SAAR

, tho

usan

ds

South Carolina (Left Axis) United States (Right Axis)

South Carolina Mortgage Delinquency Rate 90+ days delinquent

Source: Mortgage Bankers Association/Haver Analytics18

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Perc

ent

Subprime Mortgages

Total Mortgages

Prime Mortgages

3Q 2011Subprime: 10.0%

Total: 3.0%Prime: 1.7%

19

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

9.5

10.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

9.5

10.5

2008 2009 2010 2011 2012 2013

Feb. 10

10-Yr. Treasury Bond Rate

Corporate BBB Bond Rate

30 Year Conventional Mortgage Rate

Corporate AAA Bond Rate

Capital Market RatesPercent

Source: BofA Merrill Lynch, Board of Governors, Haver Analytics

An Update on Economic ConditionsRaymond Owens

February 15, 2012

An Update on Economic ConditionsRaymond Owens

February 15, 2012

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