EX-99.1 2 v110984_ex99-1.htm Unassociated Document
 
 
Exhibit 99.1
 
First Financial Holdings, Inc. Second Quarter Results
 
and additional financial information.
 
 
 
 
FIRST FINANCIAL HOLDINGS, INC.
34 Broad Street – Charleston, S.C. 29401
843-529-5933 – FAX: 843-529-5883

NEWS
NEWS
NEWS
NEWS
NEWS

 
Contact:
Dorothy B. Wright
   
Vice President-Investor Relations
   
and Corporate Secretary
   
(843) 529-5931 or (843) 729-7005

FIRST FINANCIAL HOLDINGS, INC.
REPORTS STRONG SECOND QUARTER RESULTS

Charleston, South Carolina (April 17, 2008) - First Financial Holdings, Inc. (“Company”) (NASDAQ GSM: FFCH) today reported net income for the second quarter of its fiscal year ending September 30, 2008. Net income for the quarter ended March 31, 2008 remained unchanged at $7.5 million compared with the quarter ended March 31, 2007. Basic and diluted earnings per share totaled $0.65 and $0.64, respectively, for the current quarter, compared to $0.62 per diluted share and $.63 per basic share for the quarter ended March 31, 2007. Net income and diluted earnings per share for the six months ended March 31, 2008 totaled $10.4 million, or $0.89, compared with $13.4 million, or $1.09 per diluted share, for the six months ended March 31, 2007.

President and Chief Executive Officer A. Thomas Hood commented, “We are very pleased with our results this quarter. Net income and earnings per share were consistent with the comparable quarter and increased 160% over the linked quarter. Net interest income for the quarter ended March 31, 2008 was $22.1 million, increasing from $21.1 million or 5.1% for the linked quarter ended December 31, 2007. Mortgage banking income increased by $2.2 million or 285.6% from the comparative quarter ended March 31, 2007. Because of the strategies we have in place to protect the value of our capitalized mortgage servicing asset from interest rate risk and the increased demand for mortgage loans and refinancing of existing mortgage loans, we had a significant increase in our mortgage banking income for the quarter ended March 31, 2008.

The March quarter also typically results in seasonally higher revenues from our insurance subsidiary, First Southeast Insurance Services. Insurance revenues for the quarter ended March 31, 2008 were $6.5 million and met our expectation.”

“The net interest margin was 3.35% for the quarter ended March 31, 2008 compared to a net interest margin of 3.38% for the quarter ended March 31, 2007. Compared with the most recent quarter, the net interest margin increased by 12 basis points from a net interest margin of 3.23% for the quarter ended December 31, 2007. We have been able to lower funding costs as a result of recent declines in the Fed Funds rate and similar declines in deposit rates in our markets.”

The Company recognized a loan loss provision of $3.6 million for the quarter ended March 31, 2008 compared to $3.2 million for the quarter ended December 31, 2007, and $1.1 million for the quarter ended March 31, 2007. The increase in the provision on both a linked and comparative quarter basis is attributable to increased charge offs and the current economic slow down. It should be noted that we increased our loan loss reserve as a percent of total loans from 76 basis points during the quarter ended December 31, 2007 to 80 basis points during the quarter ended March 31, 2008. Problem assets, which include problem loans as well as real estate owned, as a percentage of total assets were 0.60% at March 31, 2008 compared with 0.24% at March 31, 2007 and 0.46% at December 31, 2007. The Company’s loan loss reserve coverage of non-performing loans was 138.8% at March 31, 2008 compared to 289.1% at March 31, 2007 and 163.6% at December 31, 2007.
 
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First Financial Holdings, Inc.
Page 2
April 17, 2008

Hood noted, “We continue to carefully analyze and monitor credit trends in our loan portfolio. The Company continues to experience higher levels of non-performing loans and net loan charge-offs. Annualized net loan charge-offs as a percentage of net loans totaled 0.43% for the quarter ended March 31, 2008 compared with 0.20% for the comparable quarter one year ago and 0.36% for the quarter ended December 31, 2007. We also experienced an increase in our home equity loan charge-offs during this quarter.”

The Company’s operating results for the second quarter of 2008 were favorably affected by a $645 thousand pre-tax gain from the redemption of VISA Inc. Class B common stock in connection with its initial public offering in March 2008, and the reversal of a pre-tax charge of $260 thousand recognized in the first quarter of fiscal 2008 related to a reserve established for the Company’s share of the VISA Inc. litigation settlements. We reversed the litigation settlement reserve as a result of VISA Inc. establishing an escrow account to satisfy this obligation as part of its initial public offering. The net after-tax effect of these two VISA Inc. items increased net income for the second quarter of 2008 by $552 thousand.

Non-interest income totaled $17.8 million for the second quarter of fiscal 2008, an increase of $3.1 million from $14.7 million for the quarter ended March 31, 2007. Again, this increase during the quarter is primarily attributable to increases in mortgage banking operations and service charges and fees on deposit accounts. Total revenues, defined as net interest income plus total other income, excluding gains on sales of investments and gains on disposition of assets, increased to $39.2 million, for the quarter ended March 31, 2008, an increase of $4.4 million, or 12.6%, from $34.8 million during the comparable quarter ended March 31, 2007.

Total non-interest expenses, net of the reversal of VISA litigation expenses discussed earlier, decreased by $2.1 million, or 7.8%, to $24.3 million for the quarter ended March 31, 2008 compared to $26.4 million for the quarter ended December 31, 2007. While the effects of our early retirement program have reduced salary and employee benefits costs, we continue to see higher occupancy expenses related to our on-going property renovations. This renovation work is nearly complete and we anticipate starting to lease the unoccupied space in the near future.

Hood continued, “One of our ongoing goals is to increase non-interest revenues and to improve our operating efficiency. With the recently completed early retirement program announced in the quarter ending December 31, 2007, we are seeing positive results in our efficiency trends. We are also working on technology initiatives such as merchant capture systems and document imaging systems that will further improve our efficiency.”

“In-store expansion and diversification continued with the February 2008 opening of our 14th in-store sales center in the Lowe’s Food Store in Murrells Inlet, South Carolina. Two additional in-store sales centers are expected to open in late fiscal 2008. In order to take advantage of emerging markets, we are relocating our Shoppers Port branch on Highway 17 South in Charleston. Likewise, in Florence, South Carolina we are consolidating our Second Loop and South Park branches into one office near our current South Park location.”

Hood continued, “Last week, we announced that our subsidiary, First Southeast Insurance Services, Inc. acquired the operations of The Somers-Pardue Agency, Inc., a Burlington, North Carolina-based independent insurance agency. We are very excited to have their team of professionals join the First Financial family. They will be strategic partners in our insurance and financial services businesses, contributing further to the diversification of our non-interest revenues. First Southeast Insurance now represents more than 40 major insurance companies offering an extensive group of personal and business insurance products.”

“While current market conditions continue to present many challenges, we are dedicated to finding the best financial solutions for our customers and the best results for our shareholders. Our Board of Directors, officers and employees are very focused on achieving financial and operational goals for fiscal 2008,” Hood concluded.

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First Financial Holdings, Inc.
Page 3
April 17, 2008

As of March 31, 2008, First Financial’s total assets were $2.9 billion, loans receivable totaled $2.2 billion and deposits were $1.9 billion. Stockholders’ equity was $186.6 million and book value per common share totaled $16.00 at March 31, 2008.

First Financial is the holding company for First Federal Savings and Loan Association of Charleston, which operates 57 offices located in the Charleston metropolitan area, Horry, Georgetown, Florence and Beaufort counties in South Carolina and Brunswick County in coastal North Carolina. The Company also provides insurance, brokerage and trust services through First Southeast Insurance Services, The Kimbrell Insurance Group, First Southeast Investor Services and First Southeast Fiduciary and Trust Services. 

NOTE: A. Thomas Hood, President and CEO of the Company, and R. Wayne Hall, Executive Vice President and CFO, will discuss these results in a conference call at 2:00 PM (ET), April 17, 2008. The call can be accessed via a webcast available on First Financial’s website at www.firstfinancialholdings.com.
 
 

Forward Looking Statements

Certain matters in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, including operating efficiencies, perceived opportunities in the market, potential future credit experience, and statements regarding the Company’s mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. Management’s ability to predict results or the effect of future plans or strategies is inherently uncertain. The Company’s actual results, performance or achievements may differ materially from those suggested, expressed or implied by forward-looking statements due to a wide range of factors including, but not limited to, the general business environment, general economic conditions nationally and in the State of South Carolina, interest rates, the South Carolina real estate market, the demand for mortgage loans, competitive conditions between banks and non-bank financial services providers, regulatory changes and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended September 30, 2007. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on these statements.

Such forward-looking statements may include projections. Such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the SEC regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct. The Company does not undertake to update any forward-looking statement that may be made on behalf of the Company.


For additional information about First Financial, please visit our web site at www.firstfinancialholdings.com or contact Dorothy B. Wright, Vice President-Investor Relations and Corporate Secretary, (843) 529-5931.
 
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First Financial Holdings, Inc.
Page 4
April 17, 2008
FIRST FINANCIAL HOLDINGS, INC.
Unaudited Consolidated Financial Highlights
(in thousands, except share data)
 
   
Three Months Ended
  
Six Months Ended
  
 
  
03/31/08
 
03/31/07
 
12/31/07
  
03/31/08
 
03/31/07
  
                       
Statements of Income
                      
Interest income
  
$
43,810
  
$
41,388
  
$
44,363
  
$
88,172
  
$
82,573
  
Interest expense
    
21,669
   
20,933
   
23,303
   
44,972
   
41,416
 
Net interest income
    
22,141
   
20,455
   
21,060
   
43,200
   
41,157
 
Provision for loan losses
    
(3,567
)
  
(1,071
)
  
(3,248
)
  
(6,814
)
  
(1,924
)
Net interest income after provision
    
18,574
   
19,384
   
17,812
   
36,386
   
39,233
 
Other income
                                
Net gain on sale of investments and
                               
mortgage-backed securities
    
645
   
266
   
100
   
746
   
266
 
Brokerage fees
    
906
   
709
   
680
   
1,586
   
1,316
 
Commissions on insurance
    
6,532
   
6,970
   
4,037
   
10,569
   
10,900
 
Other agency income
    
237
   
325
   
250
   
487
   
572
 
Service charges and fees on deposit accounts
    
5,780
   
4,938
   
6,077
   
11,857
   
10,028
 
Mortgage banking income
    
2,961
   
768
   
1,849
   
4,810
   
2,055
 
Gains on disposition of assets
    
59
   
19
   
36
   
96
   
75
 
Other
    
681
   
689
   
611
   
1,290
   
1,136
 
Total other income
    
17,801
   
14,684
   
13,640
   
31,441
   
26,348
 
Other expenses
                                
Salaries and employee benefits
    
15,963
   
14,840
   
18,007
   
33,971
   
30,013
 
Occupancy costs
    
2,012
   
1,566
   
2,034
   
4,046
   
3,221
 
Marketing
    
570
   
562
   
694
   
1,264
   
989
 
Furniture and equipment expense
    
1,481
   
1,380
   
1,532
   
3,013
   
2,753
 
Other
    
4,036
   
3,978
   
4,373
   
8,408
   
7,861
 
Total other expenses
    
24,062
   
22,326
   
26,640
   
50,702
   
44,837
 
Income before income taxes
    
12,313
   
11,742
   
4,812
   
17,125
   
20,744
 
Provision for income taxes
    
4,783
   
4,202
   
1,915
   
6,698
   
7,361
 
Net income
    
7,530
   
7,540
   
2,897
   
10,427
   
13,383
 
Earnings per common share:
                                
Basic
    
0.65
   
0.63
   
0.25
   
0.89
   
1.11
 
Diluted
    
0.64
   
0.62
   
0.25
   
0.89
   
1.09
 
Average shares outstanding
    
11,659
   
12,043
   
11,646
   
11,652
   
12,044
 
Average diluted shares outstanding
    
11,675
   
12,223
   
11,727
   
11,701
   
12,242
 
                                 
Ratios:
                                
Return on average equity
    
16.11
%
  
15.99
%
  
6.21
%
  
11.18
%
  
14.31
%
Return on average assets
    
1.06
%
  
1.13
%
  
0.42
%
  
0.74
%
  
1.00
%
Net interest margin
    
3.35
%
  
3.38
%
  
3.23
%
  
3.30
%
  
3.37
%
Total other expense/average assets
    
3.37
%
  
3.41
%
  
3.86
%
  
3.61
%
  
3.43
%
Efficiency ratio (1)
    
61.39
%
  
64.21
%
  
71.10
%
  
65.93
%
  
66.95
%
Net charge-offs/loans, annualized
    
0.43
%
  
0.20
%
  
0.36
%
  
0.40
%
  
0.18
%
 
 
(1) Excludes from income - (losses) gains on sales of securities, net real estate operations, gains on disposition of assets; excludes from expenses - early retirement expenses, expenses related to VISA litigation.
 
Please Note: Certain prior period amounts have been reclassified to conform to current period presentation.
 
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First Financial Holdings, Inc.
Page 5
April 17, 2008
 
FIRST FINANCIAL HOLDINGS, INC.
Unaudited Consolidated Financial Highlights
(in thousands, except share data)
 
               
 
  
03/31/08
  
03/31/07
  
12/31/07
  
               
Statements of Financial Condition
              
Assets
              
Cash and cash equivalents
  
$
77,722
  
$
118,653
  
$
74,448
  
Investments
    
64,642
   
50,885
   
63,399
 
Mortgage-backed securities
    
370,848
   
285,321
   
345,397
 
Loans receivable, net
    
2,232,058
   
2,107,651
   
2,194,972
 
Office properties, net
    
76,708
   
63,349
   
74,791
 
Real estate owned
    
4,310
   
1,277
   
2,748
 
Intangible assets
    
22,420
   
22,823
   
22,523
 
Other assets
    
39,796
   
41,395
   
39,429
 
 Total Assets
    
2,888,504
   
2,691,354
   
2,817,707
 
Liabilities
                    
Deposits
    
1,875,099
   
1,877,084
   
1,806,585
 
Advances from FHLB
    
719,000
   
454,000
   
708,000
 
Other borrowings
    
52,204
   
104,730
   
52,206
 
Other liabilities
    
55,575
   
66,194
   
63,620
 
 Total Liabilities
    
2,701,878
   
2,502,008
   
2,630,411
 
Stockholders’ equity
                    
Stockholders’ equity
    
295,545
   
282,528
   
290,608
 
Treasury stock
    
(103,268
)
  
(91,741
)
  
(103,268
)
Accumulated other comprehensive loss
    
(5,651
)
  
(1,441
)
  
(44
)
 Total stockholders’ equity
    
186,626
   
189,346
   
187,296
 
 Total liabilities and stockholders’ equity
    
2,888,504
   
2,691,354
   
2,817,707
 
Stockholders’ equity/assets
    
6.46
%
  
7.04
%
  
6.65
%
                     
Common shares outstanding
    
11,663
   
11,950
   
11,657
 
Book value per share
  
$
16.00
  
$
15.84
  
$
16.07
  
                        
     
03/31/08
    
03/31/07
    
12/31/07
  
Credit quality-quarterly results
                    
Total reserves for loan losses
  
$
17,901
  
$
14,756
  
$
16,692
  
Loan loss reserves / loans
    
0.80
%
  
0.70
%
  
0.76
%
Reserves/non-performing loans
    
138.78
%
  
289.05
%
  
163.63
%
Provision for losses
  
$
3,567
  
$
1,071
  
$
3,248
  
Net loan charge-offs
  
$
2,358
  
$
1,030
  
$
1,983
  
                     
Problem assets
                    
Non-accrual loans
  
$
12,800
  
$
5,049
  
$
10,133
  
Accruing loans 90 days or more past due
    
99
   
56
   
68
 
REO through foreclosure
    
4,310
   
1,277
   
2,748
 
 Total
  
$
17,209
  
$
6,382
  
$
12,949
  
As a percent of total assets
    
0.60
%
  
0.24
%
  
0.46
%
 
 
First Financial Holdings, Inc.
(dollars in thousands)
 
   
As of / For the Quarter Ended (Unaudited)
BALANCE SHEET
  
03/31/08
  
12/31/07
  
09/30/07
  
06/30/07
  
03/31/07
  
12/31/06
  
09/30/06
  
06/30/06
  
Assets
                                  
Cash and investments 
  
$
142,364
  
$
137,847
  
$
132,963
  
$
151,474
  
$
169,538
  
$
161,515
  
$
180,366
  
$
186,569
  
Loans receivable 
    
2,232,058
   
2,194,972
   
2,140,769
   
2,122,228
   
2,107,651
   
2,077,411
   
2,061,129
   
2,047,966
 
Mortgage-backed securities 
    
370,848
   
345,397
   
297,011
   
264,655
   
285,321
   
290,148
   
296,493
   
298,022
 
Office properties and equip. 
    
76,708
   
74,791
   
74,303
   
66,140
   
63,349
   
60,429
   
56,080
   
53,885
 
Real estate owned 
    
4,310
   
2,748
   
1,513
   
1,560
   
1,277
   
2,005
   
1,920
   
1,725
 
Other assets 
    
62,216
   
61,952
   
64,811
   
64,877
   
64,218
   
63,520
   
62,140
   
63,527
 
 Total assets
  
$
2,888,504
  
$
2,817,707
  
$
2,711,370
  
$
2,670,934
  
$
2,691,354
  
$
2,655,028
  
$
2,658,128
  
$
2,651,694
  
Liabilities
                                                  
Deposits 
  
$
1,875,099
  
$
1,806,585
  
$
1,854,051
  
$
1,885,677
  
$
1,877,084
  
$
1,819,804
  
$
1,823,028
  
$
1,812,002
  
Advances-FHLB 
    
719,000
   
708,000
   
554,000
   
435,000
   
454,000
   
475,000
   
465,000
   
517,000
 
Other borrowed money 
    
52,204
   
52,206
   
52,207
   
97,258
   
104,730
   
112,996
   
115,968
   
74,029
 
Other liabilities 
    
55,575
   
63,620
   
65,397
   
64,240
   
66,194
   
59,248
   
70,367
   
71,878
 
 Total liabilities
    
2,701,878
   
2,630,411
   
2,525,655
   
2,482,175
   
2,502,008
   
2,467,048
   
2,474,363
   
2,474,909
 
 Total stockholders' equity
    
186,626
   
187,296
   
185,715
   
188,759
   
189,346
   
187,980
   
183,765
   
176,785
 
Total liabilities and stockholders' equity
  
$
2,888,504
  
$
2,817,707
  
$
2,711,370
  
$
2,670,934
  
$
2,691,354
  
$
2,655,028
  
$
2,658,128
  
$
2,651,694
  
                                                   
Total shares o/s
    
11,663
   
11,657
   
11,635
   
11,841
   
11,950
   
12,065
   
12,021
   
12,000
 
Book value per share
  
$
16.00
  
$
16.07
  
$
15.96
  
$
15.94
  
$
15.84
  
$
15.58
  
$
15.29
  
$
14.73
  
Equity/assets
    
6.46
%
  
6.65
%
  
6.85
%
  
7.07
%
  
7.04
%
  
7.08
%
  
6.91
%
  
6.67
%
                                                   
AVERAGE BALANCES
                                                  
Total assets 
  
$
2,853,106
  
$
2,764,539
  
$
2,691,152
  
$
2,681,144
  
$
2,673,191
  
$
2,656,578
  
$
2,655,784
  
$
2,621,396
  
Earning assets 
    
2,655,387
   
2,584,426
   
2,476,732
   
2,477,751
   
2,453,456
   
2,437,654
   
2,434,301
   
2,405,440
 
Loans 
    
2,227,139
   
2,189,044
   
2,142,475
   
2,131,985
   
2,103,270
   
2,080,090
   
2,072,423
   
2,023,916
 
Costing liabilities 
    
2,612,019
   
2,523,927
   
2,432,008
   
2,444,677
   
2,419,069
   
2,384,137
   
2,394,502
   
2,379,397
 
Deposits 
    
1,841,855
   
1,841,414
   
1,874,849
   
1,878,237
   
1,836,062
   
1,826,960
   
1,814,111
   
1,804,496
 
Equity 
    
186,961
   
186,506
   
187,237
   
189,053
   
188,663
   
185,861
   
180,275
   
175,358
 
 
 
First Financial Holdings, Inc.
(dollars in thousands)
 
   
Quarter Ended (Unaudited)
Fiscal Year
  
   
03/31/08
  
12/31/07
  
09/30/07
  
06/30/07
  
03/31/07
  
12/31/06
  
09/30/06
  
06/30/06
  
 09/30/07
  
09/30/06
  
STATEMENT OF OPERATIONS
                                       
Total interest income
  
$
43,810
  
$
44,363
  
$
42,931
  
$
42,540
  
$
41,388
  
$
41,185
  
$
40,670
  
$
38,652
  
$
168,044
  
$
151,340
  
Total interest expense
    
21,669
   
23,303
   
22,239
   
21,559
   
20,933
   
20,483
   
20,022
   
18,413
   
85,214
   
71,615
 
Net interest income
    
22,141
   
21,060
   
20,692
   
20,981
   
20,455
   
20,702
   
20,648
   
20,239
   
82,830
   
79,725
 
Provision for loan losses
    
(3,567
)
  
(3,248
)
  
(1,850
)
  
(1,390
)
  
(1,071
)
  
(853
)
  
(1,100
)
  
(1,415
)
  
(5,164
)
  
(4,895
)
Net int. inc. after provision
    
18,574
   
17,812
   
18,842
   
19,591
   
19,384
   
19,849
   
19,548
   
18,824
   
77,666
   
74,830
 
Other income
                                                              
Gain on investment securities
    
645
   
100
               
266
         
11
   
(9
)
  
266
   
5
 
Brokerage fees
    
906
   
680
   
665
   
570
   
709
   
607
   
664
   
694
   
2,551
   
2,777
 
Commissions on insurance
    
6,532
   
4,037
   
4,883
   
5,082
   
6,970
   
3,930
   
4,921
   
4,986
   
20,865
   
19,607
 
Other agency income
    
237
   
250
   
288
   
321
   
325
   
247
   
303
   
313
   
1,181
   
1,185
 
Mortgage banking income
    
2,961
   
1,849
   
922
   
1,278
   
768
   
1,287
   
883
   
1,287
   
4,255
   
4,989
 
Svc. chgs/fees-dep. accts
    
5,780
   
6,077
   
5,818
   
5,720
   
4,938
   
5,090
   
5,130
   
5,073
   
21,566
   
20,266
 
Real estate operations (net)
    
(140
)
  
(65
)
  
(152
)
  
(203
)
  
(100
)
  
(186
)
  
(87
)
  
(140
)
  
(641
)
  
(607
)
Gains (losses) on disposition of properties
    
59
   
36
   
40
   
115
   
19
   
56
   
74
   
801
   
230
   
989
 
Other
    
821
   
676
   
910
   
612
   
789
   
633
   
871
   
583
   
2,945
   
2,744
 
Total other income 
    
17,801
   
13,640
   
13,374
   
13,495
   
14,684
   
11,664
   
12,770
   
13,588
   
53,218
   
51,955
 
Other expenses
                                                              
Salaries & employee benefits
    
15,963
   
18,007
   
14,172
   
14,596
   
14,840
   
15,173
   
14,045
   
13,549
   
58,669
   
54,648
 
Occupancy costs
    
2,012
   
2,034
   
1,810
   
1,601
   
1,566
   
1,655
   
1,561
   
1,603
   
6,632
   
5,754
 
Marketing
    
570
   
694
   
521
   
751
   
562
   
427
   
576
   
690
   
2,261
   
2,353
 
Furniture and equipment expense
    
1,481
   
1,532
   
1,641
   
1,473
   
1,380
   
1,373
   
1,395
   
1,360
   
5,867
   
5,406
 
Other
    
4,036
   
4,373
   
4,677
   
4,357
   
3,978
   
3,883
   
4,003
   
4,082
   
17,008
   
15,774
 
Total other expenses 
    
24,062
   
26,640
   
22,821
   
22,778
   
22,326
   
22,511
   
21,580
   
21,284
   
90,437
   
83,935
 
Income before taxes
    
12,313
   
4,812
   
9,395
   
10,308
   
11,742
   
9,002
   
10,738
   
11,128
   
40,447
   
42,850
 
Provision for income taxes
    
4,783
   
1,915
   
4,204
   
3,810
   
4,202
   
3,159
   
3,820
   
3,949
   
15,375
   
15,221
 
 Net Income
  
$
7,530
  
$
2,897
  
$
5,191
  
$
6,498
  
$
7,540
  
$
5,843
  
$
6,918
  
$
7,179
  
$
25,072
  
$
27,629
  
 
Note: Certain prior period amounts have been reclassified to conform to current period presentation.
                
                                                               
Average shares o/s, basic
    
11,659
   
11,646
   
11,741
   
11,886
   
12,043
   
12,046
   
12,007
   
12,013
   
11,929
   
12,024
 
Average shares o/s, diluted
    
11,675
   
11,727
   
11,842
   
12,032
   
12,223
   
12,259
   
12,174
   
12,163
   
12,089
   
12,190
 
Net income per share - basic
  
$
0.65
  
$
0.25
  
$
0.44
  
$
0.55
  
$
0.63
  
$
0.49
  
$
0.58
  
$
0.60
  
$
2.10
  
$
2.30
  
Net income per share - diluted
  
$
0.64
  
$
0.25
  
$
0.44
  
$
0.54
  
$
0.62
  
$
0.48
  
$
0.57
  
$
0.59
  
$
2.07
  
$
2.27
  
Dividends paid per share
  
$
0.255
  
$
0.255
  
$
0.25
  
$
0.25
  
$
0.25
  
$
0.25
  
$
0.24
  
$
0.24
  
$
1.00
  
$
0.92
  
 
 
First Financial Holdings, Inc.
(dollars in thousands)
 
   
Quarter Ended (unaudited)
Fiscal Year
 
   
03/31/08
  
12/31/07
  
09/30/07
  
06/30/07
  
03/31/07
  
12/31/06
  
09/30/06
  
06/30/06
  
09/30/07
  
09/30/06
  
OTHER RATIOS
                                          
Return on Average Assets 
    
1.06
%
  
0.42
%
  
0.77
%
  
0.97
%
  
1.13
%
  
0.88
%
  
1.04
%
  
1.10
%
  
0.94
%
  
1.06
%
Return on Average Equity 
    
16.11
%
  
6.21
%
  
11.09
%
  
13.75
%
  
15.99
%
  
12.52
%
  
15.35
%
  
16.38
%
  
13.40
%
  
15.76
%
Average yield on earning assets 
    
6.63
%
  
6.81
%
  
6.89
%
  
6.88
%
  
6.84
%
  
6.70
%
  
6.63
%
  
6.44
%
  
6.82
%
  
6.35
%
Average cost of paying liabilities 
    
3.34
%
  
3.67
%
  
3.65
%
  
3.54
%
  
3.51
%
  
3.41
%
  
3.32
%
  
3.10
%
  
3.53
%
  
3.05
%
Gross spread 
    
3.29
%
  
3.14
%
  
3.24
%
  
3.34
%
  
3.33
%
  
3.29
%
  
3.31
%
  
3.34
%
  
3.29
%
  
3.30
%
Net interest margin 
    
3.35
%
  
3.23
%
  
3.31
%
  
3.40
%
  
3.38
%
  
3.37
%
  
3.37
%
  
3.38
%
  
3.36
%
  
3.35
%
Operating exp./avg. assets 
    
3.37
%
  
3.86
%
  
3.48
%
  
3.50
%
  
3.41
%
  
3.47
%
  
3.34
%
  
3.31
%
  
3.46
%
  
3.32
%
Efficiency ratio 
    
61.39
%
  
71.10
%
  
66.77
%
  
65.90
%
  
63.87
%
  
69.27
%
  
65.22
%
  
64.74
%
  
66.40
%
  
64.68
%
Note: Average yields, costs and margins
for prior periods adjusted to actual days
 
COMPOSITION OF GROSS LOAN PORTFOLIO
                            
Mortgage Loans (1-4 Family) 
  
$
916,104
  
$
912,008
  
$
904,363
  
$
904,138
  
$
912,100
  
$
909,164
  
$
910,497
  
$
908,743
  
Construction Loans (1-4 Family) 
    
70,450
   
73,048
   
82,714
   
86,074
   
89,615
   
90,171
   
101,702
   
106,787
 
Commercial Real Estate 
    
340,872
   
326,975
   
293,849
   
284,649
   
286,103
   
282,396
   
283,016
   
286,013
 
Commercial Business Loans 
    
84,798
   
82,836
   
81,846
   
83,629
   
86,890
   
82,974
   
82,316
   
78,314
 
Land 
    
251,937
   
246,532
   
231,415
   
227,471
   
222,165
   
219,349
   
206,858
   
195,950
 
Home Equity Lines of Credit 
    
281,178
   
270,880
   
263,922
   
263,588
   
257,281
   
255,609
   
252,393
   
253,884
 
Mobile Home Loans 
    
210,287
   
206,270
   
199,349
   
193,449
   
184,704
   
179,440
   
173,801
   
170,262
 
Credit Cards 
    
15,638
   
16,198
   
14,775
   
14,272
   
13,940
   
14,579
   
13,334
   
13,298
 
Other Consumer Loans 
    
136,546
   
138,282
   
138,484
   
134,944
   
120,330
   
118,211
   
119,741
   
117,665
 
   
$
2,307,810
  
$
2,273,029
  
$
2,210,717
  
$
2,192,214
  
$
2,173,128
  
$
2,151,893
  
$
2,143,658
  
$
2,130,916
  
 Note: The Composition of Gross Loans above
 has been changed to collateral type which agrees
 with the 10Qs as filed with the SEC.
 
ASSET QUALITY
                                  
Non-accrual loans 
  
$
12,800
  
$
10,133
  
$
6,087
  
$
5,710
  
$
5,049
  
$
3,796
  
$
3,684
  
$
5,020
  
Loans 90 days or more past due 
    
99
   
68
   
49
   
90
   
56
   
44
   
64
   
64
 
REO thru foreclosure 
    
4,310
   
2,748
   
1,513
   
1,560
   
1,277
   
2,005
   
1,920
   
1,725
 
 TOTAL
  
$
17,209
  
$
12,949
  
$
7,649
  
$
7,360
  
$
6,382
  
$
5,845
  
$
5,668
  
$
6,809
  
LOAN AND REO LOSS RESERVES
                                                  
Total reserves for loan losses 
  
$
17,901
  
$
16,692
  
$
15,428
  
$
15,188
  
$
14,756
  
$
14,714
  
$
14,681
  
$
14,518
  
Loan loss reserves/ loans 
    
0.80
%
  
0.76
%
  
0.72
%
  
0.71
%
  
0.70
%
  
0.70
%
  
0.71
%
  
0.70
%
Provision for losses 
    
3,567
   
3,248
   
1,850
   
1,390
   
1,071
   
853
   
1,100
   
1,415
 
Net loan charge-offs 
    
2,358
   
1,983
   
1,610
   
958
   
1,030
   
820
   
938
   
1,118
 
Net charge-offs/average net loans 
    
0.11
%
  
0.09
%
  
0.08
%
  
0.05
%
  
0.05
%
  
0.04
%
  
0.04
%
  
0.06
%
Annualized net charge-offs/av.loans 
    
0.43
%
  
0.36
%
  
0.30
%
  
0.18
%
  
0.19
%
  
0.16
%
  
0.18
%
  
0.22
%