CHARLESTON, S.C., Jan. 27, 2010 (GLOBE NEWSWIRE) -- First Financial Holdings, Inc. ("First Financial" or the "Company") (Nasdaq:FFCH), the holding company for First Federal Savings and Loan Association of Charleston ("First Federal" or the "Association"), today reported results for the first quarter of its fiscal year ending September 30, 2010. The net loss for the quarter ended December 31, 2009 was $4.5 million compared to a $6.5 million loss from the comparative quarter ended December 31, 2008. Basic and diluted loss per share was $0.28 for the current quarter, compared to $0.56 per basic and diluted loss per share for the quarter ended December 31, 2008. Including the preferred stock dividend and related accretion, the net loss to common shareholders was $5.5 million, or $0.33 per diluted share, for the first quarter, compared to a net loss of $6.8 million, or $0.58 per diluted share, for the first quarter one year ago.
President and Chief Executive Officer A. Thomas Hood commented, "Our core operating results remain strong. We have added several very talented bankers to our team. As we navigate through this difficult environment, they will make important contributions. We are devoting significant resources to the monitoring and early recognition of potential problems in our loan portfolio and to the development of new customer relationships."
The Company recognized a provision for loan losses of $25.3 million for the quarter ended December 31, 2009 compared to $21.3 million for the quarter ended September 30, 2009, and $20.5 million for the quarter ended December 31, 2008. As President and CEO Hood explained in our January 8, 2010 press release, "This higher than historical provision results from asset quality downgrades to land loans and acquisition and development loans. This deterioration is the result of weakness in the economy and further decline in real estate values." The Company increased its allowance for loan losses as a percent of total loans from 257 basis points during the quarter ended September 30, 2009 to 278 basis points during the quarter ended December 31, 2009. Problem assets, which include non-accrual loans, accruing loans 90 days or more past due and real estate owned, as a percentage of total assets were 3.73% at December 31, 2009 compared with 2.92% at September 30, 2009 and 1.33% at December 31, 2008. The Company's loan loss reserve coverage of non-performing loans, defined as total reserves for loan losses divided by non-accrual loans and accruing loans 90 days or more past due was 67.6% at December 31, 2009 compared to 85.0% at September 30, 2009 and 118.0% at December 31, 2008. Hood continued, "Our Loss Mitigation Team remains very committed to working with borrowers searching for alternatives to mortgage foreclosure. In fact, our latest Foreclosure Prevention Clinic was held this past Saturday, January 23, 2010."
Compared with the quarter ended September 30, 2009, the net interest margin decreased by five basis points from a net interest margin of 3.99% to 3.94% for the quarter ended December 31, 2009. Net interest income for the quarter ended December 31, 2009 was $32.9 million, decreasing from $34.1 million or 3.4% for the linked quarter ended September 30, 2009. Hood commented, "Our net interest margin decreased due to a slightly more competitive deposit rate market and due to increased balances in non-accruing loans. We remain very focused on increasing our core deposits and developing long-term customer relationships across our entire footprint."
Mortgage banking income was $2.4 million for the first quarter of fiscal 2010, a decrease of $261 thousand or 9.8% for the linked quarter ended September 30, 2009 and an increase of $651 thousand or 37.0% for the comparative quarter ended December 31, 2008. The Company continues its strategy of having certain economic hedging strategies in place to protect the value of our capitalized mortgage servicing asset from interest rate risk.
During the quarter ended December 31, 2009, there was further deterioration in our bank trust preferred collateralized debt obligations ("CDOs") portfolio. As a result, the Company recognized a credit-related other than temporary impairment (OTTI) charge totaling $235 thousand on six CDOs comprised of bank trust preferred securities and $259 thousand on one private label collateralized mortgage obligation ("CMO"). Total CDOs, comprised of bank trust preferred securities, was $4.9 million or less than 1.0% of our total investment portfolio at December 31, 2009.
On December 10, 2009, First Federal announced the donation of our building, located on Coit Street in Florence, South Carolina, to the Greater Florence Chamber of Commerce. Hood commented, "The Chamber needs a new space to better accommodate its staff while maintaining a downtown presence. At the same time, First Federal intends to occupy a smaller, more efficient space and no longer needs the amount of square footage this office contains." The accounting treatment of this donation increased both our gains on disposition of assets and other expenses. The net tax benefit of this donation for fiscal 2010 is $636 thousand.
Total other income was $15.1 million for the first quarter of fiscal 2010 compared to $15.4 million for the fourth quarter of fiscal 2009 and $11.3 million for the quarter ended December 31, 2008. 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 $46.7 million for the quarter ended December 31, 2009, an increase of $10.4 million, or 28.5%, from $36.3 million during the comparable quarter ended December 31, 2008.
Total other expense increased by $4.0 million, or 14.9%, to $30.6 million for the quarter ended December 31, 2009 compared to $26.6 million for the quarter ended December 31, 2008. Salary and employee benefits costs and occupancy costs increased year over year as a result of additional staff due to the acquisition of the operations of Cape Fear Bank and American Pensions, Inc.
Hood continued, "While current economic conditions continue to present varied challenges for our markets and for all financial institutions, our Board of Directors, officers and employees remain committed to finding the best financial solutions for our customers and the best results for our shareholders."
As of December 31, 2009, First Financial's total assets were $3.5 billion, loans receivable totaled $2.6 billion and deposits were $2.3 billion. Stockholders' equity was $354.5 million and book value per common share totaled $17.52 at December 31, 2009. First Federal's capital ratio (i.e., equity divided by assets) was 7.9% at December 31, 2009, compared to 7.9% and 5.9% at September 30, 2009 and December 31, 2008, respectively. Tangible equity to assets was 7.7% at December 31, 2009, compared to 7.7% and 6.9% at September 30, 2009 and December 31, 2008, respectively. As of December 31, 2009, First Federal remained categorized "well capitalized" under regulatory standards.
As a participant in the Treasury's Capital Purchase Program, the Company continues to use this capital to help borrowers avoid foreclosures in our markets, and to expand our loan and investment portfolios. The Company paid a dividend of $813 thousand to the U.S. Treasury for its investment during the first quarter of fiscal 2010.
On September 29, 2009, the Company raised $65.0 million through a public offering by issuing 4,193,550 shares of common stock at a price of $15.50 per share. Subsequently, on October 9, 2009 the Company announced that the underwriters fully exercised their over-allotment option, resulting in the issuance of an additional 629,032 shares. Including the over-allotment option, the net proceeds to the Company after deducting underwriting discounts, commissions and estimated offering expenses were approximately $69.8 million.
First Financial is the holding company for First Federal Savings and Loan Association of Charleston, which operates 65 offices located in the Charleston metropolitan area, Horry, Georgetown, Florence and Beaufort counties in South Carolina and Brunswick, New Hanover and Pender counties in coastal North Carolina offering banking, trust and pension administration services. The Company also provides insurance and brokerage services through First Southeast Insurance Services, The Kimbrell Insurance Group and First Southeast Investor 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 (EST), January 27, 2010. 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 as a result of a wide range of factors including, but not limited to, the general business environment, general economic conditions nationally and in the States of North and South Carolina, interest rates, the North and South Carolina real estate markets, 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, our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we have acquired or may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto, 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 ("SEC"), including the Annual Report on Form 10-K for the fiscal year ended September 30, 2009. 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.
FIRST FINANCIAL HOLDINGS, INC.
Unaudited Condensed Consolidated Financial Highlights
(in thousands, except share data)
Three Months Ended
----------------------------
Statements of Income 12/31/09 12/31/08 09/30/09
-------- -------- --------
Interest income $ 48,100 $ 43,984 $ 49,815
Interest expense 15,212 18,853 15,764
-------- -------- --------
Net interest income 32,888 25,131 34,051
Provision for loan losses (25,327) (20,471) (21,280)
-------- -------- --------
Net interest income after provision 7,561 4,660 12,771
Other income
Brokerage fees 496 480 532
Insurance revenues 5,423 5,245 5,918
Impairment on investment securities (494) (2,144) (614)
Service charges and fees on
deposit accounts 5,817 5,669 5,865
Mortgage banking income 2,411 1,760 2,672
Gains on disposition of assets 1,275 52 37
Other 166 197 981
-------- -------- --------
Total other income 15,094 11,259 15,391
Other expenses
Salaries and employee benefits 17,878 17,162 18,227
Occupancy costs 2,444 2,145 2,446
Marketing 568 650 586
Furniture and equipment expense 2,139 1,495 2,277
Other 7,522 5,144 7,089
-------- -------- --------
Total other expenses 30,551 26,596 30,625
-------- -------- --------
Income (loss) before income taxes (7,896) (10,677) (2,463)
Provision for income taxes (3,364) (4,130) (1,199)
-------- -------- --------
Net income (loss) (4,532) (6,547) (1,264)
Preferred stock dividend 813 235 802
Accretion on preferred stock discount 136 42 127
-------- -------- --------
Net income (loss) available to common
shareholders $ (5,481) $ (6,824) $ (2,193)
======== ======== ========
Earnings (loss) per share net income:
Basic $ (0.28) $ (0.56) $ (0.11)
Diluted $ (0.28) $ (0.56) $ (0.11)
Earnings (loss) per share available
to common shareholders:
Basic $ (0.33) $ (0.58) $ (0.19)
Diluted $ (0.33) $ (0.58) $ (0.19)
Average number shares outstanding 16,464 11,694 11,791
Average number diluted shares outstanding 16,464 11,694 11,791
Ratios:
Return on average equity -5.14% -12.98% -1.57%
Return on average assets -0.52% -0.87% -0.14%
Net interest margin 3.94% 3.48% 3.99%
Total other expense / average assets 3.50% 3.54% 3.44%
Efficiency ratio (1) 60.20% 68.20% 60.46%
Net charge-offs / average loans,
annualized 3.04% 0.49% 1.10%
(1) Excludes from income: gains / (losses) on sales of securities,
net real estate operations, gains on disposition of assets,
realized impairment on investments, VISA litigation, and
non-recurring donation expense.
Please Note: Certain prior period amounts have been reclassified to
conform to current period presentation.
FIRST FINANCIAL HOLDINGS, INC.
Unaudited Condensed Consolidated Financial Highlights
(in thousands, except share data)
Statements of Financial Condition 12/31/09 12/31/08 09/30/09
---------- ---------- ----------
Assets
Cash and cash equivalents $ 66,429 $ 62,334 $ 78,070
Investments 81,407 57,585 82,298
Mortgage-backed securities 465,983 403,797 478,980
Loans receivable, net 2,570,668 2,334,254 2,593,269
Loan held for sale 22,903 11,804 25,603
Office properties, net 80,113 82,322 81,021
Real estate owned 20,864 5,346 22,002
Intangible assets 38,495 36,156 37,961
Mortgage servicing rights 12,411 8,225 11,166
FDIC indemnification
receivable, net 64,130 -- 62,754
Other assets 52,745 35,470 37,163
---------- ---------- ----------
Total Assets $3,476,148 $3,037,293 $3,510,287
========== ========== ==========
Liabilities and Stockholders'
Equity
Deposits $2,277,439 $1,926,624 $2,303,611
Advances from FHLB 565,622 746,000 492,751
Other borrowings 228,204 125,204 305,205
Other liabilities 50,429 19,387 57,071
---------- ---------- ----------
Total Liabilities 3,121,694 2,817,215 3,158,638
---------- ---------- ----------
Stockholders' equity
Stockholders' equity 454,380 358,508 451,279
Treasury stock (103,563) (103,563) (103,563)
Accumulated other comprehensive
income (loss) 3,637 (34,867) 3,933
---------- ---------- ----------
Total stockholders' equity 354,454 220,078 351,649
---------- ---------- ----------
Total liabilities and
stockholders' equity $3,476,148 $3,037,293 $3,510,287
========== ========== ==========
Stockholders' equity to
total assets 10.20% 7.25% 10.02%
Common shares outstanding 16,526 11,697 15,897
Book value per common share $ 17.52 $ 13.26 $ 18.03
Tangible book value per
common share $ 15.19 $ 10.17 $ 15.64
Credit quality - quarterly results
Total reserves for loan losses $ 73,534 $ 41,528 $ 68,473
Loan loss reserves / loans 2.78% 1.74% 2.57%
Reserves / non-performing loans 67.55% 118.02% 85.00%
Provision for losses $ 25,327 $ 20,471 $ 21,280
Net loan charge-offs $ 20,266 $ 2,933 $ 7,307
Problem assets
Non-accrual loans $ 108,742 $ 35,070 $ 80,432
Accruing loans 90 days or more
past due 124 116 121
REO through foreclosure 20,864 5,346 22,002
---------- ---------- ----------
Total $ 129,730 $ 40,532 $ 102,555
As a percent of total assets 3.73% 1.33% 2.92%
First Financial Holdings, Inc.
As of the Quarter Ended (Unaudited)
(dollars in thousands)
------------------------------------------------------
BALANCE SHEET 12/31/09 09/30/09 06/30/09 03/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Assets
Cash and
investments $ 147,836 $ 160,368 $ 177,121 $ 118,555 $ 119,919
Loans
receivable,
net 2,570,668 2,593,269 2,609,498 2,333,846 2,334,254
Loans held
for sale 22,903 25,603 63,311 48,319 11,804
Mortgage
-backed
securities 465,983 478,980 522,355 538,402 403,797
Office
properties
and equip. 80,113 81,021 81,136 81,751 82,322
Real estate
owned 20,864 22,002 12,927 6,312 5,346
FDIC
indemnif
-ication, net 64,130 62,754 61,541 -- --
Other assets 103,651 86,290 79,177 79,354 79,851
---------- ---------- ---------- ---------- ----------
Total assets $3,476,148 $3,510,287 $3,607,066 $3,206,539 $3,037,293
========== ========== ========== ========== ==========
Liabilities
Deposits $2,277,439 $2,303,611 $2,341,055 $1,995,057 $1,926,624
Advances-FHLB 565,622 492,751 492,880 609,000 746,000
Other borrowed
money 228,204 305,205 420,204 310,204 125,204
Other
liabilities 50,429 57,071 59,898 38,043 19,387
---------- ---------- ---------- ---------- ----------
Total
liabilities 3,121,694 3,158,638 3,314,037 2,952,304 2,817,215
---------- ---------- ---------- ---------- ----------
Total
stock
-holders'
equity 354,454 351,649 293,029 254,235 220,078
---------- ---------- ---------- ---------- ----------
Total
liabilities
and stock
-holders'
equity $3,476,148 $3,510,287 $3,607,066 $3,206,539 $3,037,293
========== ========== ========== ========== ==========
Total shares
o/s 16,526 15,897 11,699 11,699 11,697
Book value
per share $ 17.52 $ 18.03 $ 19.49 $ 16.18 $ 13.26
Equity/assets 10.20% 10.02% 8.12% 7.93% 7.25%
AVERAGE
BALANCES
Total assets $3,493,218 $3,558,677 $3,613,406 $3,121,916 $3,005,644
Earning assets 3,311,040 3,382,326 3,427,813 3,004,582 2,867,614
Gross Loans 2,652,972 2,662,870 2,661,990 2,418,595 2,368,767
Costing
liabilities 3,057,530 3,262,178 3,232,640 2,950,628 2,807,944
Deposits 2,293,892 2,419,451 2,168,056 2,031,280 1,931,978
Equity 353,052 322,339 288,061 237,157 201,778
-------------------------------------------
BALANCE SHEET 09/30/08 06/30/08 03/31/08 12/31/07
---------- ---------- ---------- ----------
Assets
Cash and investments $ 123,918 $ 134,495 $ 142,360 $ 137,844
Loans receivable, net 2,324,537 2,263,965 2,218,027 2,184,611
Loans held for sale 8,731 4,519 14,031 10,361
Mortgage-backed
securities 351,110 353,257 370,848 345,397
Office properties
and equip. 78,796 77,732 76,766 74,850
Real estate owned 4,286 5,442 4,310 2,748
FDIC indemnification, net -- -- -- --
Other assets 82,616 84,618 62,162 61,896
---------- ---------- ---------- ----------
Total assets $2,973,994 $2,924,028 $2,888,504 $2,817,707
========== ========== ========== ==========
Liabilities
Deposits $1,851,102 $1,865,261 $1,875,099 $1,806,585
Advances-FHLB 818,000 747,000 719,000 708,000
Other borrowed money 75,205 69,204 52,204 52,206
Other liabilities 46,209 54,585 55,609 63,650
---------- ---------- ---------- ----------
Total liabilities 2,790,516 2,736,050 2,701,912 2,630,441
---------- ---------- ---------- ----------
Total stockholders'
equity 183,478 187,978 186,592 187,266
---------- ---------- ---------- ----------
Total liabilities and
stockholders' equity $2,973,994 $2,924,028 $2,888,504 $2,817,707
========== ========== ========== ==========
Total shares o/s 11,692 11,674 11,663 11,657
Book value per share $ 15.69 $ 16.10 $ 16.00 $ 16.07
Equity/assets 6.17% 6.43% 6.46% 6.65%
AVERAGE BALANCES
Total assets $2,949,011 $2,906,266 $2,853,106 $2,764,539
Earning assets 2,763,247 2,714,252 2,655,387 2,584,426
Gross Loans 2,314,352 2,269,463 2,227,139 2,189,044
Costing liabilities 2,730,439 2,671,260 2,612,019 2,523,927
Deposits 1,875,748 1,884,688 1,841,855 1,841,414
Equity 185,728 187,302 186,961 186,506
First Financial Holdings, Inc.
(dollars in thousands)
Quarter Ended (Unaudited)
-----------------------------------------------------
12/31/09 09/30/09 06/30/09 03/31/09 12/31/08 09/30/08
-------- -------- -------- -------- -------- --------
STATEMENT OF
OPERATIONS
Total interest
income $48,100 $49,815 $51,266 $43,731 $43,984 $43,398
Total interest
expense 15,212 15,764 15,727 16,770 18,853 19,243
------- ------- ------- ------- ------- -------
Net interest
income 32,888 34,051 35,539 26,961 25,131 24,155
Provision for
loan losses (25,327) (21,280) (12,367) (12,765) (20,471) (5,218)
------- ------- ------- ------- ------- -------
Net int. inc.
after provision 7,561 12,771 23,172 14,196 4,660 18,937
------- ------- ------- ------- ------- -------
Other income
Gain on
investment
securities
Brokerage fees 496 532 383 632 480 672
Insurance
revenues 5,423 5,918 6,535 6,966 5,245 6,352
Impairment on
investment
securities (494) (614) (377) (857) (2,144) (486)
Svc. chgs/
fees-dep. accts 5,817 5,865 5,688 5,280 5,669 6,133
Mortgage banking
income 2,411 2,672 986 2,652 1,760 821
Gains (losses)
on disposition
of properties 1,275 37 37 36 52 913
Other 166 981 (281) (69) 197 663
------- ------- ------- ------- ------- -------
Total other
income 15,094 15,391 12,971 14,640 11,259 15,068
------- ------- ------- ------- ------- -------
Other expenses
Salaries &
employee
benefits 17,878 18,227 15,640 13,636 17,162 14,697
Occupancy costs 2,444 2,446 2,215 2,129 2,145 2,120
Marketing 568 586 479 422 650 460
Furniture and
equipment
expense 2,139 2,277 2,202 1,572 1,495 1,629
Other 7,522 7,089 7,609 6,086 5,144 5,002
------- ------- ------- ------- ------- -------
Total other
expenses 30,551 30,625 28,145 23,845 26,596 23,908
------- ------- ------- ------- ------- -------
Income (loss)
before taxes (7,896) (2,463) 7,998 4,991 (10,677) 10,097
Provision for
income taxes (3,364) (1,199) 2,842 1,872 (4,130) 3,789
------- ------- ------- ------- ------- -------
Income before
extraordinary
items (4,532) (1,264) 5,156 3,119 (6,547) $ 6,308
======= ======= ======= ======= ======= =======
Extraordinary
items
Gain on
acquisition,
less income tax
of $18,833 28,857
Net Income (4,532) (1,264) 34,013 3,119 (6,547) 6,308
Preferred stock
dividend 813 802 813 813 235
Accretion on
preferred stock
discount 136 127 132 130 42
------- ------- ------- ------- ------- -------
Net Income (loss)
available to
common
shareholders $(5,481) $(2,193) $33,068 $ 2,176 $(6,824) $ 6,308
======= ======= ======= ======= ======= =======
Pre-tax, pre
-provision
earnings $17,431 $18,817 $20,365 $17,756 $ 9,794 $15,315
Note: Certain prior period amounts have been reclassified to conform
to current period presentation.
Average shares
o/s, basic 16,464 11,791 11,699 11,699 11,694 11,683
Average shares
o/s, diluted 16,464 11,791 11,699 11,699 11,694 11,688
Earnings per
share before
extraordinary
items -basic $ (0.28) $ (0.11) $ 0.44 $ 0.27 $ (0.56) $ 0.54
Earnings per
share before
extraordinary
items -diluted $ (0.28) $ (0.11) $ 0.44 $ 0.27 $ (0.56) $ 0.54
Earnings per
share Net
Income -basic $ (0.28) $ (0.11) $ 2.91 $ 0.27 $ (0.56) $ 0.54
Earnings per
share Net
Income -diluted $ (0.28) $ (0.11) $ 2.91 $ 0.27 $ (0.56) $ 0.54
Earnings per
share Available
to common
shareholders
- basic $ (0.33) $ (0.19) $ 2.83 $ 0.19 $ (0.58) $ 0.54
Earnings per
share Available
to common
shareholders
- diluted $ (0.33) $ (0.19) $ 2.83 $ 0.19 $ (0.58) $ 0.54
Dividends paid
per share,
authorized $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.255 $ 0.255
Quarter Ended (Unaudited) Fiscal Year
------------------------- ----------------
06/30/08 03/31/08 12/31/07 09/30/09 09/30/08
-------- -------- -------- -------- --------
STATEMENT OF OPERATIONS
Total interest income $43,219 $43,801 $44,355 $188,796 $174,772
Total interest expense 19,209 21,660 23,295 67,114 83,408
------- ------- ------- ------- -------
Net interest income 24,010 22,141 21,060 121,682 91,364
Provision for loan losses (4,907) (3,567) (3,248) (66,883) (16,939)
------- ------- ------- ------- -------
Net int. inc. after
provision 19,103 18,574 17,812 54,799 74,425
------- ------- ------- ------- -------
Other income
Gain on investment
securities 4 645 100 -- 750
Brokerage fees 665 906 680 2,028 2,923
Insurance revenues 7,420 6,771 4,287 24,667 24,830
Impairment on investment
securities (3,993) (486)
Svc. chgs/fees-dep. accts 5,911 5,780 6,077 22,501 23,901
Mortgage banking income 1,826 2,961 1,849 8,070 7,456
Gains (losses) on
disposition of
properties 43 59 36 162 1,052
Other 375 738 700 826 2,475
------- ------- ------- ------- -------
Total other income 16,244 17,860 13,729 54,261 62,901
------- ------- ------- ------- -------
Other expenses
Salaries & employee
benefits 16,603 15,965 18,007 64,666 65,271
Occupancy costs 2,037 2,001 2,053 8,935 8,210
Marketing 685 570 694 2,137 2,408
Furniture and equipment
expense 1,438 1,374 1,426 7,546 5,867
Other 4,809 4,211 4,549 25,928 18,573
------- ------- ------- ------- -------
Total other expenses 25,572 24,121 26,729 109,212 100,329
------- ------- ------- ------- -------
Income (loss) before taxes 9,775 12,313 4,812 (152) 36,997
Provision for income taxes 3,873 4,783 1,915 (615) 14,359
------- ------- ------- ------- -------
Income before
extraordinary items $ 5,902 $ 7,530 $ 2,897 $ 463 $22,638
======= ======= ======= ======= =======
Extraordinary items
Gain on acquisition, less
income tax of $18,833 28,857
Net Income 5,902 7,530 2,897 29,320 22,638
Preferred stock dividend 2,663
Accretion on preferred
stock discount 431
------- ------- ------- ------- -------
Net Income (loss)
available to common
shareholders $ 5,902 $ 7,530 $ 2,897 $26,226 $22,638
======= ======= ======= ======= =======
Pre-tax, pre-provision
earnings $14,682 $15,880 $ 8,060 $66,731 $53,936
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 11,721 11,664
Average shares o/s,
diluted 11,679 11,675 11,727 11,721 11,692
Earnings per share before
extraordinary items
-basic $ 0.51 $ 0.65 $ 0.25 $ 0.04 $ 1.94
Earnings per share before
extraordinary items
-diluted $ 0.51 $ 0.64 $ 0.25 $ 0.04 $ 1.94
Earnings per share Net
Income -basic $ 0.51 $ 0.65 $ 0.25 $ 2.50 $ 1.94
Earnings per share Net
Income -diluted $ 0.51 $ 0.64 $ 0.25 $ 2.50 $ 1.94
Earnings per share
Available to common
shareholders - basic $ 0.51 $ 0.65 $ 0.25 $ 2.24 $ 1.94
Earnings per share
Available to common
shareholders - diluted $ 0.51 $ 0.64 $ 0.25 $ 2.24 $ 1.94
Dividends paid per share,
authorized $ 0.255 $ 0.255 $ 0.255 $ 0.41 $ 1.02
First Financial Holdings, Inc.
(dollars in thousands)
Quarter Ended (unaudited)
-------------------------------------------
12/31/09 09/30/09 06/30/09 03/31/09
---------- ---------- ---------- ----------
OTHER RATIOS
Return on Average Assets -0.52% -0.14% 0.61% 0.40%
Return on Average Equity -5.14% -1.57% 7.54% 5.26%
Average yield on earning
assets 5.76% 5.84% 6.00% 5.90%
Average cost of paying
liabilities 1.97% 1.90% 1.94% 2.29%
Gross spread 3.79% 3.94% 4.06% 3.61%
Net interest margin 3.94% 3.99% 4.16% 3.64%
Operating exp./avg.
assets 3.50% 3.44% 3.30% 3.06%
Efficiency ratio 60.20% 60.46% 56.42% 55.74%
Note: Average yields, costs and margins for prior periods adjusted
to actual days
COMPOSITION OF GROSS
LOAN PORTFOLIO
Mortgage Loans
(1-4 Family) $ 966,211 $ 949,518 $ 927,296 $ 882,511
Construction Loans
(1-4 Family) 32,804 41,133 56,683 56,438
Commercial Real Estate 436,842 435,298 435,923 322,663
Commercial Construction 48,439 53,219 47,397 41,490
Commercial Business Loans 88,728 96,559 106,053 93,024
Land - Residential 105,902 169,367 171,412 143,329
Land - Commercial 173,080 130,763 135,398 107,774
Home Equity Lines
of Credit 400,803 394,075 394,794 356,281
Mobile Home Loans 250,124 244,214 239,043 232,515
Credit Cards 18,471 17,483 16,949 16,128
Marine 73,799 76,748 77,819 77,836
Other Consumer Loans 48,999 53,365 55,230 51,347
---------- ---------- ---------- ----------
2,644,202 2,661,742 2,663,997 2,381,336
Less:
Allowance for
Loan Losses 73,534 68,473 54,499 47,490
---------- ---------- ---------- ----------
Total $2,570,668 $2,593,269 $2,609,498 $2,333,846
========== ========== ========== ==========
Loans Held for Sale $ 22,903 $ 25,603 $ 63,311 $ 48,319
========== ========== ========== ==========
Note: The Composition of Gross Loans has been changed to collateral
type consistent with 10Qs as filed with the SEC.
COMPOSITION OF DEPOSITS
Checking $ 562,060 $ 527,795 $ 543,232 $ 500,750
Passbook 153,674 154,342 145,541 137,853
Money Market 338,930 344,220 341,209 296,427
---------- ---------- ---------- ----------
Core Deposits 1,054,664 1,026,357 1,029,982 935,030
Time Deposits 1,222,775 1,277,254 1,311,073 1,060,027
---------- ---------- ---------- ----------
TOTAL DEPOSITS $2,277,439 $2,303,611 $2,341,055 $1,995,057
========== ========== ========== ==========
ASSET QUALITY
Non-accrual loans $ 108,742 $ 80,432 $ 66,300 $ 54,769
Loans 90 days or more
past due 124 121 153 86
REO through foreclosure 20,864 22,002 12,927 6,312
---------- ---------- ---------- ----------
$ 129,730 $ 102,555 $ 79,380 $ 61,167
========== ========== ========== ==========
LOAN AND REO LOSS RESERVES
Total reserves for
loan losses $ 73,534 $ 68,473 $ 54,499 $ 47,490
Loan loss reserves/ loans 2.78% 2.57% 2.05% 1.99%
Provision for losses 25,327 21,280 12,367 12,765
Net loan charge-offs 20,266 7,307 9,490 6,803
Net charge-offs/avg
gross loans 0.76% 0.27% 0.36% 0.28%
Annualized net
charge-offs/avg
gross loans 3.04% 1.10% 1.43% 1.13%
Quarter Ended (unaudited)
------------------------------------------------------
12/31/08 09/30/08 06/30/08 03/31/08 12/31/07
---------- ---------- ---------- ---------- ----------
OTHER RATIOS
Return on
Average
Assets -0.87% 0.86% 0.81% 1.06% 0.42%
Return on
Average
Equity -12.98% 13.59% 12.60% 16.11% 6.21%
Average yield
on earning
assets 6.08% 6.24% 6.40% 6.63% 6.81%
Average cost
of paying
liabilities 2.64% 2.80% 2.89% 3.34% 3.67%
Gross spread 3.44% 3.44% 3.51% 3.29% 3.14%
Net interest
margin 3.48% 3.48% 3.56% 3.35% 3.23%
Operating
exp./avg.
assets 3.54% 3.24% 3.54% 3.37% 3.86%
Efficiency
ratio 68.20% 61.36% 63.47% 61.39% 71.10%
Note: Average yields, costs and margins for prior periods adjusted to
actual days
COMPOSITION OF
GROSS LOAN
PORTFOLIO
Mortgage Loans
(1-4 Family) $ 882,857 $ 886,488 $ 874,216 $ 871,774 $ 870,122
Construction
Loans
(1-4 Family) 67,980 70,396 73,064 75,590 76,169
Commercial
Real Estate 314,516 307,903 291,712 286,316 278,948
Commercial
Construction 39,380 40,827 36,791 31,142 27,274
Commercial
Business
Loans 95,638 89,764 90,070 85,797 83,831
Land -
Residential 145,757 146,694 145,213 141,355 137,270
Land -
Commercial 106,956 101,168 98,182 94,241 91,964
Home Equity
Lines of
Credit 344,526 325,354 301,184 284,696 273,399
Mobile Home
Loans 227,698 223,476 218,312 211,657 206,909
Credit Cards 16,790 16,125 15,824 15,638 16,198
Marine 79,901 83,464 83,964 81,170 81,466
Other Consumer
Loans 53,783 56,868 56,499 56,561 57,753
---------- ---------- ---------- ---------- ----------
2,375,782 2,348,527 2,285,031 2,235,937 2,201,303
Less:
Allowance for
Loan Losses 41,528 23,990 21,066 17,910 16,692
---------- ---------- ---------- ---------- ----------
Total $2,334,254 $2,324,537 $2,263,965 $2,218,027 $2,184,611
========== ========== ========== ========== ==========
Loans Held
for Sale $ 11,804 $ 8,731 $ 4,519 $ 14,031 $ 10,361
========== ========== ========== ========== ==========
Note: The Composition of Gross Loans has been changed to collateral
type consistent with 10Qs as filed with the SEC.
COMPOSITION OF
DEPOSITS
Checking $ 461,179 $ 474,301 $ 488,595 $ 483,472 $ 459,457
Passbook 126,261 129,466 133,414 130,863 127,694
Money Market 303,866 345,327 372,617 379,380 364,639
---------- ---------- ---------- ---------- ----------
Core Deposits 891,306 949,094 994,626 993,715 951,790
Time Deposits 1,035,318 902,008 870,635 881,384 854,795
---------- ---------- ---------- ---------- ----------
TOTAL
DEPOSITS $1,926,624 $1,851,102 $1,865,261 $1,875,099 $1,806,585
========== ========== ========== ========== ==========
ASSET QUALITY
Non-accrual
loans $ 35,070 $ 20,557 $ 16,562 $ 12,800 $ 10,133
Loans 90 days
or more
past due 116 76 79 99 68
REO through
foreclosure 5,346 4,286 5,442 4,310 2,748
---------- ---------- ---------- ---------- ----------
$ 40,532 $ 24,919 $ 22,083 $ 17,209 $ 12,949
========== ========== ========== ========== ==========
LOAN AND REO
LOSS RESERVES
Total reserves
for loan
losses $ 41,528 $ 23,990 $ 21,066 $ 17,910 $ 16,692
Loan loss
reserves/
loans 1.74% 1.02% 0.92% 0.80% 0.76%
Provision
for losses 20,471 5,218 4,907 3,567 3,248
Net loan
charge-offs 2,933 2,251 1,785 2,358 1,983
Net charge
-offs/avg
gross loans 0.12% 0.10% 0.08% 0.11% 0.09%
Annualized net
charge-offs/
avg gross
loans 0.49% 0.39% 0.32% 0.43% 0.36%
Fiscal Year
---------------------
09/30/09 09/30/08
---------- ----------
OTHER RATIOS
Return on Average Assets 0.01% 0.79%
Return on Average Equity 0.17% 12.16%
Average yield on earning assets 5.90% 6.53%
Average cost of paying liabilities 2.18% 3.17%
Gross spread 3.72% 3.36%
Net interest margin 3.79% 3.41%
Operating exp./avg. assets 3.26% 3.50%
Efficiency ratio 59.62% 64.33%
Note: Average yields, costs and margins for prior periods adjusted
to actual days
First Financial Holdings, Inc.
(dollars in thousands)
Quarter Ended
(unaudited)
------------------
12/31/09 09/30/09
-------- --------
COMPOSITION OF LOAN LOSSES (NET CHARGE OFFS)
Mortgage Loans (1-4 Family) $ 1,328 $ 943
Construction Loans (1-4 Family) 807 569
Commercial Real Estate 1,022 166
Commercial Construction 953 --
Commercial Business Loans 652 654
Land - Residential 4,395 955
Land - Commercial 6,262 546
Home Equity Lines of Credit 2,618 1,549
Mobile Home Loans 745 866
Credit Cards 254 228
Marine Loans 612 377
Other Consumer Loans 618 454
-------- --------
$ 20,266 $ 7,307
======== ========
-------- --------
12/31/09 09/30/09
-------- --------
COMPOSITION OF DELINQUENT AND NONACCRUAL LOANS
Mortgage Loans (1-4 Family) $ 38,485 $ 33,423
Construction Loans (1-4 Family) 4,988 5,110
Commercial Real Estate 25,794 11,045
Commercial Construction -- 2,284
Commercial Business Loans 6,093 1,264
Land - Residential 19,339 24,830
Land - Commercial 34,449 22,850
Home Equity Lines of Credit 12,717 7,697
Mobile Home Loans 6,412 5,411
Credit Cards 239 224
Marine Loans 2,000 892
Other Consumer Loans 1,225 935
-------- --------
$151,741 $115,965
======== ========
-------- --------
12/31/09 09/30/09
-------- --------
% OF DELINQUENT LOANS TO GROSS LOAN BALANCE
Mortgage Loans (1-4 Family) 3.98% 3.52%
Construction Loans (1-4 Family) 15.21% 12.42%
Commercial Real Estate 5.90% 2.54%
Commercial Construction 0.00% 4.29%
Commercial Business Loans 6.87% 1.31%
Land - Residential 18.26% 14.66%
Land - Commercial 19.90% 17.47%
Home Equity Lines of Credit 3.17% 1.95%
Mobile Home Loans 2.56% 2.22%
Credit Cards 1.29% 1.28%
Marine Loans 2.71% 1.16%
Other Consumer Loans 2.50% 1.75%
-------- --------
5.74% 4.36%
======== ========