Selected Financial Data for Transition Periods

12 Months Ended

Dec. 31, 2012

Selected Financial Data For Transition Periods [Text Block]

NOTE 21. Selected Financial Data for Transition Period

FIRST FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
	Quarters Ended
	December 31, 2011			December 31, 2010
(in thousands)				(Unaudited)
INTEREST INCOME
Interest and fees on loans	$	33,460		$	36,366
Interest and dividends on investments securities
Taxable		3,589			4,727
Tax-exempt		270			296
Other		293			683
Total interest income		37,612			42,072
INTEREST EXPENSE
Interest on deposits		4,554			7,600
Interest on borrowed money		4,159			4,224
Total interest expense		8,713			11,824
NET INTEREST INCOME		28,899			30,248
Provision for loan losses		7,445			10,483
Net interest income after provision for loan losses		21,454			19,765
NONINTEREST INCOME
Service charges and fees on deposit accounts		7,099			6,278
Mortgage and other loan income		2,681			2,642
Trust and plan administration income		1,192			1,177
Brokerage fees		532			514
Other income		650			503
Other-than-temporary impairment losses on investment securities		(180	)		(534	)
Gain on sold loan pool, net		20,796			—
Total noninterest income		32,770			10,580
NONINTEREST EXPENSE
Salaries and employee benefits		14,511			15,498
Occupancy costs		2,144			2,111
Furniture and equipment		1,870			1,725
Other real estate expenses, net		1,541			1,126
FDIC insurance and regulatory fees		830			1,180
Professional services		1,042			1,546
Advertising and marketing		789			554
Other loan expense		1,043			902
Intangible amortization		90			82
Other expense		5,026			3,846
Total noninterest expense		28,886			28,570
Income from continuing operations before taxes		25,338			1,775
Income tax expense from continuing operations		9,766			636
NET INCOME FROM CONTINUING OPERATIONS		15,572			1,139
Income from discontinued operations, net of tax		—			28
NET INCOME		15,572			1,167
Preferred stock dividends		813			813
Accretion on preferred stock discount		153			144
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	14,606		$	210
Net income per common share from continuing operations
Basic	$	0.88		$	0.01
Diluted		0.88			0.01
Net income per common share
Basic	$	0.88		$	0.01
Diluted		0.88			0.01
Average common shares outstanding
Basic		16,527			16,527
Diluted		16,527			16,529

FIRST FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Quarters Ended
	December 31, 2011			December 31, 2010
(in thousands)				(Unaudited)
Operating Activities
Net income	$	15,572		$	1,167
Less: Income from discontinued operations		—			(28	)
Net income from continuing operations		15,572			1,139
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Provision for loan losses		7,445			10,483
Depreciation		1,365			1,347
Amortization of intangibles		90			82
Net decrease (increase) in current & deferred income tax		9,620			(1,216	)
Amortization of mark-to-market adjustments		(4,483	)		(3,020	)
Fair value adjustments on other real estate owned		2,487			1,309
Accretion/amortization of unearned discounts on investments, net		89			(721	)
Other-than-temporary impairment losses on investment securities		180			534
Loans originated for sale		(117,482	)		(110,455	)
Proceeds from loans held for sale		111,931			112,365
Gain on sold loan pool, net		(20,796	)		—
Gain on sale of loans, net		(1,967	)		(2,038	)
Gain on sale of other real estate owned, net		(383	)		(141	)
Recognition of stock-based compensation expense		59			179
Decrease in prepaid FDIC insurance premium		647			950
FDIC reimbursement of covered asset losses		14			—
Other1		(1,336	)		6,081
Discontinued operations, net		—			1,232
Net cash provided by operating activities1		3,052			18,110
Investing Activities
Securities available for sale
Proceeds from sales		—			775
Proceeds from maturities, calls and payments		23,945			38,678
Purchases		(25,376	)		(7,202	)
Securities held to maturity
Proceeds from maturities, calls and payments		1,200			—
Redemption of FHLB stock, net		3,087			1,595
Increase in loans, net1		(38,450	)		(39,119	)
Proceeds from sales of loans, net		80,064			—
Proceeds from sales of other real estate owned1		6,345			2,018
Increase in property and equipment, net		(867	)		(747	)
Discontinued operations, net		—			(140	)
Net cash provided by (used in) investing activities1		49,948			(4,142	)

¹   Certain amounts have been reclassified from the original presentation in the Consolidated Statement of Cash Flows as reported in the Form 10-Q for the transitional quarter ended December 31, 2011, to conform with current period presentation.

	Quarters Ended
	December 31, 2011			December 31, 2010
(in thousands)				(Unaudited)
Financing Activities
Increase (decrease) in demand and savings deposits, net		7,126			(12,015	)
(Decrease) increase in time deposits, net		(70,749	)		6,564
Proceeds (repayments) of FHLB advances, net		3,000			(11,000	)
Dividends paid on preferred stock		(813	)		(813	)
Dividends paid on common stock		(826	)		(826	)
Net cash used in financing activities		(62,262	)		(18,090	)
Net decrease in cash and cash equivalents		(9,262	)		(4,122	)
Cash and cash equivalents at beginning of period, continuing operations		85,937			55,274
Cash and cash equivalents at beginning of period, discontinued operations		—			5,274
Cash and cash equivalents at beginning of period		85,937			60,548
Cash and cash equivalents at end of period, continuing operations		76,675			53,404
Cash and cash equivalents at end of period, discontinued operations		—			3,022
Cash and cash equivalents at end of period	$	76,675		$	56,426
Supplemental disclosures
Cash paid during the period for
Interest	$	8,987		$	11,907
Income taxes		—			—
Loans foreclosed		4,594			10,813
Loans securitized into mortgage-backed securities		96,918			87,075

The reclassifications noted above were the result of corrections of an immaterial misstatement related to the bulk sale of a pool of loans and OREO, which was executed during the quarter ended December 31, 2011. The original presentation did not correctly report the migration of loans converting to OREO in the bulk loan pool prior to sale execution. The correction in classifications between components of the cash flow statement resulted in the following adjustments:

· Cash from other operating activities decreased $3.8 million from $(5.1) million cash used as originally presented.

· Net cash used in operating activities was $(0.7) million as originally presented and increased $3.8 million to net cash provided by operating activities of $3.1 million.

· Cash from the net increase in loans & leases increased $4.1 million from $(34.3) million as originally presented.

· Cash from sales and payoffs of other real estate increased $0.3 million from $6.0 million, as originally presented.

· Net cash provided by investing activities decreased $3.8 million from $53.7 cash provided as originally presented.

The effects of the correction to appropriately classify activity on the Consolidated Statements of Cash Flows had no impact to the Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income or Statements of Changes in Shareholders’ Equity as of and for the quarter ended December 31, 2011.