EX-99.1 2 v120106_ex99-1.htm Unassociated Document
 
 
Exhibit 99.1
 
First Financial Holdings, Inc. Third 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 THIRD QUARTER EARNINGS

Charleston, South Carolina (July 17, 2008) - First Financial Holdings, Inc. (“Company”) (NASDAQ GSM: FFCH) today reported net income for the third quarter of its fiscal year ending September 30, 2008. Net income for the quarter ended June 30, 2008 was $5.9 million and decreased $596 thousand or 9.2% from the comparative quarter ended June 30, 2007. Basic and diluted earnings per share totaled $0.51 for the current quarter, compared to $0.55 per basic share and $0.54 per diluted share, respectively for the quarter ended June 30, 2007. Net income and diluted earnings per share for the nine months ended June 30, 2008 totaled $16.3 million, or $1.40, compared with $19.9 million, or $1.63 per diluted share, for the nine months ended June 30, 2007.

President and Chief Executive Officer A. Thomas Hood commented, “In the current economic environment, we are very pleased with our results this quarter. While our net income and earnings per share were 9.2% lower than the comparable quarter and 21.6% lower than the linked quarter, our net interest margin was 3.56% for the quarter ended June 30, 2008 compared to a net interest margin of 3.40% for the quarter ended June 30, 2007. Compared with the most recent quarter, the net interest margin increased by 21 basis points from a net interest margin of 3.35% for the quarter ended March 31, 2008. While lower funding costs continued this quarter, we expect continued pressure on our net interest margin in future quarters as most of our deposit base has repriced and we are seeing increased competition for deposits in the markets we serve. Net interest income for the quarter ended June 30, 2008 was $24.0 million, increasing from $22.1 million or 8.4% for the linked quarter ended March 31, 2008.

Mortgage banking income increased by $550 thousand or 43.0% from the comparative quarter ended June 30, 2007. We continue to provide our customers with a variety of options for real estate finance. We have had strong revenues from mortgage origination and sales during the first nine months of the fiscal year.

The Company recognized a provision for loan losses of $4.9 million for the quarter ended June 30, 2008 compared to $3.6 million for the quarter ended March 31, 2008, and $1.4 million for the quarter ended June 30, 2007. The increase in the provision on both a linked and comparative quarter basis is attributable to increased non-performing loans, charge offs and an assessment of current economic conditions in our markets. The Company increased its allowance for loan losses as a percent of total loans from 80 basis points during the quarter ended March 31, 2008 to 92 basis points during the quarter ended June 30, 2008. Problem assets, which include non-accrual loans, accruing loans more than 90 days past due and real estate owned, as a percentage of total assets were 0.76% at June 30, 2008 compared with 0.28% at June 30, 2007 and 0.60% at March 31, 2008. Problem Assets increases in the linked quarter were in the Construction and Single Family categories. The Company’s loan loss reserve coverage of non-performing loans was 126.3% at June 30, 2008 compared to 261.9% at June 30, 2007 and 138.8% at March 31, 2008.
 

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First Financial Holdings, Inc.
Page 2
July 17, 2008
 
 
Hood noted, “We are very vigorously monitoring credit trends and specific loans in our loan portfolio. While the Company is experiencing higher levels of non-performing loans and net loan charge-offs, our comparisons are to historical lows. We remain very confident in our underwriting. Annualized net loan charge-offs as a percentage of net loans totaled 0.32% for the quarter ended June 30, 2008 compared with 0.17% for the comparable quarter one year ago and 0.43% for the quarter ended March 31, 2008. During the June quarter, we experienced decreases in commercial and real estate charge-offs while consumer charge-offs increased. Specifically, increased consumer charge-offs were in the credit card and manufactured housing categories. Our total exposure to 1-4 family construction loans at June 30, 2008 was approximately $75 million.”

Non-interest income had an especially strong quarter with the addition of Somers-Pardue and increased revenues in each major category. Total non-interest revenues were $16.4 million for the third quarter of fiscal 2008, an increase of $2.9 million from $13.5 million for the quarter ended June 30, 2007. This increase is primarily attributable to increases in insurance commissions, 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 $40.4 million, for the quarter ended June 30, 2008, an increase of $6.0 million, or 17.4%, from $34.4 million during the comparable quarter ended June 30, 2007.

Total non-interest expenses increased by $2.9 million or 12.7%, to $25.7 million for the quarter ended June 30, 2008 compared to $22.8 million for the quarter ended June 30, 2007. Salary and employee benefits costs increased this quarter as a result of the acquisition of the operations of The Somers-Pardue Agency, Inc. and to increased healthcare costs. We continue to have higher occupancy expenses as a result of our recently completed renovations. We expect that leases on these properties will reduce occupancy costs in future quarters. Several new leases have been executed and occupancy is expected during the first quarter of fiscal 2009. Marketing expenses also increased slightly this quarter compared to the quarter ended March 31, 2008.

Hood noted, “Two additional in-store sales centers are expected to open late 2008 and we are relocating our Shoppers Port branch on Highway 17 South in Charleston. In Florence, South Carolina we closed our Second Loop branch and we will be relocating our South Park branch into a new facility later this year. Our in-store operations produce many new deposit account relationships. Our overall checking account growth rate during fiscal 2008 is 6.4% while our in-store growth rate on demand accounts is 22%. Our in-store locations now represent 25% of total sales offices.”

Hood commented, “The housing market outlook remains challenging and we are continuing to see slowness in the housing market as a result of increased inventories of residential units and fewer housing starts. We expect that our markets will perform better than other markets in the southeast. The vast majority of our loans finance properties in coastal South Carolina. Coastal markets in North and South Carolina continue to have lower levels of unemployment and better job growth. Recent (May 2008) unemployment rates in our primary market, the Charleston MSA, were 4.9% compared to South Carolina at 6.5% and the U.S. at 5.5%”

Hood continued, “While current market conditions continue to present many challenges for all financial institutions, we are committed to finding the best financial solutions for our customers and the best results for our shareholders. Our Board of Directors, officers and employees remain focused on achieving our financial and operational goals for fiscal 2008,” Hood concluded.
 
 
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First Financial Holdings, Inc.
Page 3
July 17, 2008


As of June 30, 2008, First Financial’s total assets were $2.9 billion, loans receivable totaled $2.3 billion and deposits were $1.9 billion. Stockholders’ equity was $188.0 million and book value per common share totaled $16.10 at June 30, 2008. First Federal’s capital ratio (i.e., equity divided by assets) was 7.0% at June 30, 2008, compared to 7.0% and 7.4% at March 31, 2008 and June 30, 2007, respectively. Tangible equity to assets was 7.2% at June 30, 2008, compared to 7.1% and 7.5% at March 31, 2008 and June 30, 2007, respectively. As of June 30, 2008, First Federal remained categorized “well capitalized” under regulatory standards.

First Financial is the holding company for First Federal Savings and Loan Association of Charleston (“First Federal”), 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 (EDT), July 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, the credit risk of lending activities, including changes in the level of and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, 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
July 17, 2008
 
FIRST FINANCIAL HOLDINGS, INC.
Unaudited Consolidated Financial Highlights
(in thousands, except share data)
 
   
Three Months Ended
  
Nine Months Ended
  
 
  
06/30/08
  
06/30/07
  
03/31/08
  
06/30/08
  
06/30/07
  
                       
Statements of Income
                                
Interest income
  
$
43,229
  
$
42,540
  
$
43,810
  
$
131,401
  
$
125,113
  
Interest expense
    
19,220
   
21,559
   
21,669
   
64,192
   
62,975
 
Net interest income
    
24,009
   
20,981
   
22,141
   
67,209
   
62,138
 
Provision for loan losses
    
(4,907
)
  
(1,390
)
  
(3,567
)
  
(11,721
)
  
(3,314
)
Net interest income after provision
    
19,102
   
19,591
   
18,574
   
55,488
   
58,824
 
Other income
                                
Net gain on sale of investments and
mortgage-backed securities
    
4
         
645
   
750
   
266
 
Brokerage fees
    
665
   
571
   
906
   
2,251
   
1,887
 
Commissions on insurance
    
7,136
   
5,083
   
6,532
   
17,705
   
15,982
 
Other agency income
    
296
   
321
   
237
   
783
   
893
 
Service charges and fees on deposit accounts
    
5,912
   
5,720
   
5,780
   
17,769
   
15,748
 
Mortgage banking income
    
1,828
   
1,278
   
2,961
   
6,638
   
3,333
 
Gains on disposition of assets
    
43
   
115
   
59
   
139
   
190
 
Other
    
504
   
407
   
681
   
1,794
   
1,544
 
Total other income
    
16,388
   
13,495
   
17,801
   
47,829
   
39,843
 
Other expenses
                                
Salaries and employee benefits
    
16,625
   
14,484
   
15,963
   
50,596
   
44,497
 
Occupancy costs
    
2,016
   
1,601
   
2,012
   
6,062
   
4,822
 
Marketing
    
685
   
751
   
570
   
1,949
   
1,740
 
Furniture and equipment expense
    
1,445
   
1,362
   
1,374
   
4,245
   
3,890
 
Other
    
4,944
   
4,580
   
4,143
   
13,565
   
12,666
 
Total other expenses
    
25,715
   
22,778
   
24,062
   
76,417
   
67,615
 
Income before income taxes
    
9,775
   
10,308
   
12,313
   
26,900
   
31,052
 
Provision for income taxes
    
3,873
   
3,810
   
4,783
   
10,571
   
11,171
 
Net income
    
5,902
   
6,498
   
7,530
   
16,329
   
19,881
 
Earnings per common share:
                                
Basic
    
0.51
   
0.55
   
0.65
   
1.40
   
1.66
 
Diluted
    
0.51
   
0.54
   
0.64
   
1.40
   
1.63
 
Average shares outstanding
    
11,668
   
11,886
   
11,659
   
11,658
   
11,992
 
Average diluted shares outstanding
    
11,679
   
12,032
   
11,675
   
11,694
   
12,172
 
                                 
Ratios:
                                
Return on average equity
    
12.60
%
  
13.75
%
  
16.11
%
  
11.65
%
  
14.14
%
Return on average assets
    
0.81
%
  
0.97
%
  
1.06
%
  
0.77
%
  
0.99
%
Net interest margin
    
3.56
%
  
3.40
%
  
3.35
%
  
3.39
%
  
3.38
%
Total other expense/average assets
    
3.54
%
  
3.40
%
  
3.37
%
  
3.59
%
  
3.38
%
Efficiency ratio (1)
    
63.47
%
  
65.90
%
  
61.39
%
  
65.06
%
  
66.28
%
Net charge-offs/loans, annualized
    
0.32
%
  
0.17
%
  
0.43
%
  
0.37
%
  
0.17
%
 
(1) Excludes from income - (losses) gains on sales of securities, net real estate operations, gains on disposition of assets; excludes from expenses - non-recurring compensation expenses
 
Please Note: Certain prior period amounts have been reclassified to conform to current period presentation.
 
 
First Financial Holdings, Inc.
Page 5
July 17, 2008
 
FIRST FINANCIAL HOLDINGS, INC.
Unaudited Consolidated Financial Highlights
(in thousands, except share data)
               
   
06/30/08
  
06/30/07
  
03/31/08
  
               
Statements of Financial Condition
                    
Assets
                    
Cash and cash equivalents
  
$
72,735
  
$
101,011
  
$
77,722
  
Investments
    
61,760
   
50,463
   
64,642
 
Mortgage-backed securities
    
353,257
   
264,655
   
370,848
 
Loans receivable, net
    
2,268,484
   
2,122,228
   
2,232,058
 
Office properties, net
    
77,673
   
66,140
   
76,708
 
Real estate owned
    
5,442
   
1,560
   
4,310
 
Intangible assets
    
40,401
   
22,712
   
22,420
 
Mortgage servicing rights
    
12,754
   
13,660
   
10,685
 
Other assets
    
31,522
   
28,505
   
29,111
 
Total Assets
    
2,924,028
   
2,670,934
   
2,888,504
 
Liabilities
                    
Deposits
    
1,865,261
   
1,885,677
   
1,875,099
 
Advances from FHLB
    
747,000
   
435,000
   
719,000
 
Other borrowings
    
69,204
   
97,258
   
52,204
 
Other liabilities
    
54,585
   
64,240
   
55,575
 
Total Liabilities
    
2,736,050
   
2,482,175
   
2,701,878
 
Stockholders’ equity
                    
Stockholders’ equity
    
298,835
   
286,761
   
295,545
 
Treasury stock
    
(103,274
)
  
(96,149
)
  
(103,268
)
Accumulated other comprehensive loss
    
(7,583
)
  
(1,853
)
  
(5,651
)
Total stockholders’ equity
    
187,978
   
188,759
   
186,626
 
Total liabilities and stockholders’ equity
    
2,924,028
   
2,670,934
   
2,888,504
 
Stockholders’ equity/assets
    
6.43
%
  
7.07
%
  
6.46
%
                     
Common shares outstanding
    
11,674
   
11,841
   
11,663
 
Book value per share
  
$
16.10
  
$
15.94
  
$
16.00
  
               
 
  
06/30/08
 
06/30/07
 
03/31/08
  
Credit quality-quarterly results
                    
Total reserves for loan losses
  
$
21,023
  
$
15,188
  
$
17,901
  
Loan loss reserves / loans
    
0.92
%
  
0.71
%
  
0.80
%
Reserves/non-performing loans
    
126.34
%
  
261.86
%
  
138.78
%
Provision for losses
  
$
4,907
  
$
1,390
  
$
3,567
  
Net loan charge-offs
  
$
1,785
  
$
943
  
$
2,358
  
                     
Problem assets
                    
Non-accrual loans
  
$
16,562
  
$
5,710
  
$
12,800
  
Accruing loans 90 days or more past due
    
79
   
90
   
99
 
REO through foreclosure
    
5,442
   
1,560
   
4,310
 
Total
  
$
22,083
  
$
7,360
  
$
17,209
  
As a percent of total assets
    
0.76
%
  
0.28
%
  
0.60
%
 
 
                                   
BALANCE SHEET
  
06/30/08
 
03/31/08
 
12/31/07
 
09/30/07
 
06/30/07
 
03/31/07
 
12/31/06
 
09/30/06
  
Assets
                                                  
Cash and investments 
  
$
134,495
  
$
142,364
  
$
137,847
  
$
132,963
  
$
151,474
  
$
169,538
  
$
161,515
  
$
180,366
  
Loans receivable 
    
2,268,484
   
2,232,058
   
2,194,972
   
2,140,769
   
2,122,228
   
2,107,651
   
2,077,411
   
2,061,129
 
Mortgage-backed securities 
    
353,257
   
370,848
   
345,397
   
297,011
   
264,655
   
285,321
   
290,148
   
296,493
 
Office properties and equip. 
    
77,673
   
76,708
   
74,791
   
74,303
   
66,140
   
63,349
   
60,429
   
56,080
 
Real estate owned 
    
5,442
   
4,310
   
2,748
   
1,513
   
1,560
   
1,277
   
2,005
   
1,920
 
Other assets 
    
84,677
   
62,216
   
61,952
   
64,811
   
64,877
   
64,218
   
63,520
   
62,140
 
 Total assets
  
$
2,924,028
  
$
2,888,504
  
$
2,817,707
  
$
2,711,370
  
$
2,670,934
  
$
2,691,354
  
$
2,655,028
  
$
2,658,128
  
Liabilities
                                                  
Deposits 
  
$
1,865,261
  
$
1,875,099
  
$
1,806,585
  
$
1,854,051
  
$
1,885,677
  
$
1,877,084
  
$
1,819,804
  
$
1,823,028
  
Advances-FHLB 
    
747,000
   
719,000
   
708,000
   
554,000
   
435,000
   
454,000
   
475,000
   
465,000
 
Other borrowed money 
    
69,204
   
52,204
   
52,206
   
52,207
   
97,258
   
104,730
   
112,996
   
115,968
 
Other liabilities 
    
54,585
   
55,575
   
63,620
   
65,397
   
64,240
   
66,194
   
59,248
   
70,367
 
Total liabilities
    
2,736,050
   
2,701,878
   
2,630,411
   
2,525,655
   
2,482,175
   
2,502,008
   
2,467,048
   
2,474,363
 
Total stockholders' equity
    
187,978
   
186,626
   
187,296
   
185,715
   
188,759
   
189,346
   
187,980
   
183,765
 
Total liabilities and stockholders' equity
  
$
2,924,028
  
$
2,888,504
  
$
2,817,707
  
$
2,711,370
  
$
2,670,934
  
$
2,691,354
  
$
2,655,028
  
$
2,658,128
  
                                                   
Total shares o/s
    
11,674
   
11,663
   
11,657
   
11,635
   
11,841
   
11,950
   
12,065
   
12,021
 
Book value per share
  
$
16.10
  
$
16.00
  
$
16.07
  
$
15.96
  
$
15.94
  
$
15.84
  
$
15.58
  
$
15.29
  
Equity/assets
    
6.43
%
  
6.46
%
  
6.65
%
  
6.85
%
  
7.07
%
  
7.04
%
  
7.08
%
  
6.91
%
                                                   
AVERAGE BALANCES
                                                  
Total assets 
  
$
2,906,266
  
$
2,853,106
  
$
2,764,539
  
$
2,691,152
  
$
2,681,144
  
$
2,673,191
  
$
2,656,578
  
$
2,655,784
  
Earning assets 
    
2,714,252
   
2,655,387
   
2,584,426
   
2,476,732
   
2,477,751
   
2,453,456
   
2,437,654
   
2,434,301
 
Loans 
    
2,269,463
   
2,227,139
   
2,189,044
   
2,142,475
   
2,131,985
   
2,103,270
   
2,080,090
   
2,072,423
 
Costing liabilities 
    
2,671,260
   
2,612,019
   
2,523,927
   
2,432,008
   
2,444,677
   
2,419,069
   
2,384,137
   
2,394,502
 
Deposits 
    
1,884,688
   
1,841,855
   
1,841,414
   
1,874,849
   
1,878,237
   
1,836,062
   
1,826,960
   
1,814,111
 
Equity 
    
187,302
   
186,961
   
186,506
   
187,237
   
189,053
   
188,663
   
185,861
   
180,275
 
 

   
Quarter Ended (Unaudited)
  
Fiscal Year
  
   
06/30/08
 
03/31/08
 
12/31/07
 
09/30/07
 
06/30/07
 
03/31/07
 
12/31/06
 
09/30/06
 
09/30/07
 
09/30/06
  
STATEMENT OF OPERATIONS
                                                              
Total interest income
  
$
43,229
  
$
43,810
  
$
44,363
  
$
42,931
  
$
42,540
  
$
41,388
  
$
41,185
  
$
40,670
  
$
168,044
  
$
151,340
  
Total interest expense
    
19,220
   
21,669
   
23,303
   
22,239
   
21,559
   
20,933
   
20,483
   
20,022
   
85,214
   
71,615
 
Net interest income
    
24,009
   
22,141
   
21,060
   
20,692
   
20,981
   
20,455
   
20,702
   
20,648
   
82,830
   
79,725
 
Provision for loan losses
    
(4,907
)
  
(3,567
)
  
(3,248
)
  
(1,850
)
  
(1,390
)
  
(1,071
)
  
(853
)
  
(1,100
)
  
(5,164
)
  
(4,895
)
Net int. inc. after provision
    
19,102
   
18,574
   
17,812
   
18,842
   
19,591
   
19,384
   
19,849
   
19,548
   
77,666
   
74,830
 
Other income
                                                              
Gain on investment securities
    
4
   
645
   
100
               
266
         
11
   
266
   
5
 
Brokerage fees
    
665
   
906
   
680
   
665
   
570
   
709
   
607
   
664
   
2,551
   
2,777
 
Commissions on insurance
    
7,136
   
6,532
   
4,037
   
4,883
   
5,082
   
6,970
   
3,930
   
4,921
   
20,865
   
19,607
 
Other agency income
    
296
   
237
   
250
   
288
   
321
   
325
   
247
   
303
   
1,181
   
1,185
 
Mortgage banking income
    
1,828
   
2,961
   
1,849
   
922
   
1,278
   
768
   
1,287
   
883
   
4,255
   
4,989
 
Svc. chgs/fees-dep. accts
    
5,912
   
5,780
   
6,077
   
5,818
   
5,720
   
4,938
   
5,090
   
5,130
   
21,566
   
20,266
 
Gains (losses) on disposition of properties
    
43
   
59
   
36
   
40
   
115
   
19
   
56
   
74
   
230
   
989
 
Other
    
504
   
681
   
611
   
758
   
409
   
689
   
447
   
784
   
2,304
   
2,137
 
Total other income
    
16,388
   
17,801
   
13,640
   
13,374
   
13,495
   
14,684
   
11,664
   
12,770
   
53,218
   
51,955
 
Other expenses
                                                              
Salaries & employee benefits
    
16,625
   
15,963
   
18,007
   
14,172
   
14,596
   
14,840
   
15,173
   
14,045
   
58,669
   
54,648
 
Occupancy costs
    
2,016
   
2,012
   
2,034
   
1,810
   
1,601
   
1,566
   
1,655
   
1,561
   
6,632
   
5,754
 
Marketing
    
685
   
570
   
694
   
521
   
751
   
562
   
427
   
576
   
2,261
   
2,353
 
Furniture and equipment expense
    
1,445
   
1,374
   
1,532
   
1,641
   
1,473
   
1,380
   
1,373
   
1,395
   
5,867
   
5,406
 
Other
    
4,944
   
4,143
   
4,373
   
4,677
   
4,357
   
3,978
   
3,883
   
4,003
   
17,008
   
15,774
 
Total other expenses
    
25,715
   
24,062
   
26,640
   
22,821
   
22,778
   
22,326
   
22,511
   
21,580
   
90,437
   
83,935
 
Income before taxes
    
9,775
   
12,313
   
4,812
   
9,395
   
10,308
   
11,742
   
9,002
   
10,738
   
40,447
   
42,850
 
Provision for income taxes
    
3,873
   
4,783
   
1,915
   
4,204
   
3,810
   
4,202
   
3,159
   
3,820
   
15,375
   
15,221
 
Net Income
  
$
5,902
  
$
7,530
  
$
2,897
  
$
5,191
  
$
6,498
  
$
7,540
  
$
5,843
  
$
6,918
  
$
25,072
  
$
27,629
  
                                                               
Note: Certain prior period amounts have been reclassified to conform to current period presentation.
                                                               
Average shares o/s, basic
    
11,668
   
11,659
   
11,646
   
11,741
   
11,886
   
12,043
   
12,046
   
12,007
   
11,929
   
12,024
 
Average shares o/s, diluted
    
11,679
   
11,675
   
11,727
   
11,842
   
12,032
   
12,223
   
12,259
   
12,174
   
12,089
   
12,190
 
Net income per share - basic
  
$
0.51
  
$
0.65
  
$
0.25
  
$
0.44
  
$
0.55
  
$
0.63
  
$
0.49
  
$
0.58
  
$
2.10
  
$
2.30
  
Net income per share - diluted
  
$
0.51
  
$
0.64
  
$
0.25
  
$
0.44
  
$
0.54
  
$
0.62
  
$
0.48
  
$
0.57
  
$
2.07
  
$
2.27
  
Dividends paid per share
  
$
0.255
  
$
0.255
  
$
0.255
  
$
0.25
  
$
0.25
  
$
0.25
  
$
0.25
  
$
0.24
  
$
1.00
  
$
0.92
  
 
 
   
Quarter Ended (unaudited)
  
Fiscal Year
  
   
06/30/08
 
03/31/08
 
12/31/07
 
09/30/07
 
06/30/07
 
03/31/07
 
12/31/06
 
09/30/06
 
09/30/07
 
09/30/06
  
OTHER RATIOS
                                                              
Return on Average Assets
    
0.81
%
  
1.06
%
  
0.42
%
  
0.77
%
  
0.97
%
  
1.13
%
  
0.88
%
  
1.04
%
  
0.94
%
  
1.06
%
Return on Average Equity
    
12.60
%
  
16.11
%
  
6.21
%
  
11.09
%
  
13.75
%
  
15.99
%
  
12.52
%
  
15.35
%
  
13.40
%
  
15.76
%
Average yield on earning assets
    
6.40
%
  
6.63
%
  
6.81
%
  
6.89
%
  
6.88
%
  
6.84
%
  
6.70
%
  
6.63
%
  
6.82
%
  
6.35
%
Average cost of paying liabilities
    
2.89
%
  
3.34
%
  
3.67
%
  
3.65
%
  
3.54
%
  
3.51
%
  
3.41
%
  
3.32
%
  
3.53
%
  
3.05
%
Gross spread
    
3.51
%
  
3.29
%
  
3.14
%
  
3.24
%
  
3.34
%
  
3.33
%
  
3.29
%
  
3.31
%
  
3.29
%
  
3.30
%
Net interest margin
    
3.56
%
  
3.35
%
  
3.23
%
  
3.31
%
  
3.40
%
  
3.38
%
  
3.37
%
  
3.37
%
  
3.36
%
  
3.35
%
Operating exp./avg. assets
    
3.54
%
  
3.37
%
  
3.86
%
  
3.48
%
  
3.50
%
  
3.41
%
  
3.47
%
  
3.34
%
  
3.46
%
  
3.32
%
Efficiency ratio
    
63.47
%
  
61.39
%
  
71.10
%
  
66.77
%
  
65.90
%
  
63.87
%
  
69.27
%
  
65.22
%
  
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)
  
$
880,759
  
$
887,670
  
$
882,179
  
$
876,320
  
$
882,081
  
$
890,541
  
$
888,721
  
$
894,283
              
Construction Loans (1-4 Family) 
    
95,476
   
98,884
   
100,712
   
110,375
   
108,132
   
111,174
   
110,613
   
117,916
             
Commercial Real Estate
    
353,919
   
340,872
   
329,140
   
294,232
   
284,649
   
286,103
   
282,396
   
283,016
             
Commercial Business Loans
    
89,004
   
84,798
   
82,836
   
81,846
   
83,629
   
86,890
   
82,974
   
82,316
             
Land
    
259,146
   
251,937
   
246,532
   
231,415
   
227,471
   
222,165
   
219,349
   
206,858
             
Home Equity Lines of Credit
    
296,902
   
281,178
   
270,880
   
263,922
   
263,588
   
257,281
   
255,609
   
252,393
             
Mobile Home Loans
    
216,467
   
210,287
   
206,270
   
199,349
   
193,449
   
184,704
   
179,440
   
173,801
             
Credit Cards
    
15,824
   
15,638
   
16,198
   
14,775
   
14,272
   
13,940
   
14,579
   
13,334
             
Other Consumer Loans
    
139,084
   
136,546
   
138,282
   
138,719
   
134,944
   
120,337
   
114,013
   
119,741
             
   
$
2,346,581
  
$
2,307,810
  
$
2,273,029
  
$
2,210,953
  
$
2,192,215
  
$
2,173,135
  
$
2,147,694
  
$
2,143,658
              
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
  
$
16,562
  
$
12,800
  
$
10,133
  
$
6,087
  
$
5,710
  
$
5,049
  
$
3,796
  
$
3,684
              
Loans 90 days or more past due
    
79
   
99
   
68
   
49
   
90
   
56
   
44
   
64
             
REO thru foreclosure
    
5,442
   
4,310
   
2,748
   
1,513
   
1,560
   
1,277
   
2,005
   
1,920
             
TOTAL
  
$
22,083
  
$
17,209
  
$
12,949
  
$
7,649
  
$
7,360
  
$
6,382
  
$
5,845
  
$
5,668
              
LOAN AND REO LOSS RESERVES
                                                              
Total reserves for loan losses
  
$
21,023
  
$
17,901
  
$
16,692
  
$
15,428
  
$
15,188
  
$
14,756
  
$
14,714
  
$
14,681
              
Loan loss reserves/ loans
    
0.92
%
  
0.80
%
  
0.76
%
  
0.72
%
  
0.71
%
  
0.70
%
  
0.70
%
  
0.71
%
            
Provision for losses
    
4,907
   
3,567
   
3,248
   
1,850
   
1,390
   
1,071
   
853
   
1,100
             
Net loan charge-offs
    
1,785
   
2,358
   
1,983
   
1,610
   
958
   
1,030
   
820
   
938
             
Net charge-offs/average net loans
    
0.08
%
  
0.11
%
  
0.09
%
  
0.08
%
  
0.05
%
  
0.05
%
  
0.04
%
  
0.04
%
            
Annualized net charge-offs/av.loans
    
0.32
%
  
0.43
%
  
0.36
%
  
0.30
%
  
0.18
%
  
0.19
%
  
0.16
%
  
0.18
%