First Financial Holdings Inc (FFCH) SEC Filing 10-K Annual report for the fiscal year ending Friday, September 30, 2005

FIRST FINANCIAL HOLDINGS, INC.

34 Broad Street * Charleston, S.C. 29401
843-529-5933 * FAX: 843-529-5929

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	Contact:	Susan E. Baham
		Executive Vice President and
		Chief Financial Officer
		(843) 529-5601

 

FIRST FINANCIAL HOLDINGS, INC.
REPORTS FOURTH
QUARTER AND YEAR END RESULTS

Charleston, South Carolina (October 20, 2005) -- First Financial Holdings, Inc. ("Company")(NASDAQ: FFCH) reported today net income for its fourth quarter and fiscal year ended September 30, 2005. Diluted earnings per common share were $.57 for the quarter ended September 30, 2005 compared with diluted earnings per common share of $.49 for the comparable quarter ended September 30, 2004. Net income was $7.1 million for the quarter ended September 30, 2005 compared with $6.2 million for the comparable quarter of fiscal 2004. Diluted earnings per common share for the fiscal year ended September 30, 2005 increased to $2.09 on net income of $26.2 million compared with diluted earnings per common share of $1.92 and net income of $24.6 million, respectively, for the year ended September 30, 2004.

          President and Chief Executive Officer A. Thomas Hood commented, "We ended our fourth quarter with solid results in a number of key areas and are appreciative of the dedication of our staff in achieving many of our strategic initiatives this year."

          "In light of a continuation of Federal Reserve policies to increase interest rates at a measured pace, one of my first comments will focus on the net interest margin. Compared with the comparable quarter in fiscal 2004, the net interest margin declined this quarter two basis points to 3.30%. Coupled with average earning asset growth of $65.1 million between the two comparable periods, net interest income increased by $413 thousand, or 2.2%. Compared with the most recent quarter, the net interest margin declined by four basis points from a net interest margin of 3.34% in the June 2005 quarter. As many other financial institutions are experiencing, the flattening of the yield curve on United States Treasury Securities, more competitive pricing on deposits and a very competitive lending environment are all contributing to the decline in the net interest margin for the company. During this fiscal year, long term interest rates have not increased as rapidly as short term interest rates. In the most recent quarter ended September 30, 2005, however, there was a moderate increase in intermediate-term treasury rates and as a result, mortgage servicing rights ("MSR") valuations improved, resulting in a recovery of $300 thousand in an impairment reserve. This recovery compares with the recognition of an MSR impairment of $1.2 million during the comparable quarter in fiscal 2004."

          Hood continued, "Total non-interest revenues increased $2.7 million in the current quarter to $13.6 million. Gains on asset sales were $584 thousand in the quarter ended September 30, 2005 and $1.8 million during the same quarter a year ago. No gains from securities sales were recorded in the current quarter compared with $239 thousand in the quarter ended September 30, 2004. Excluding the MSR valuation changes and asset and securities sales from both periods, total non-interest revenues increased $2.6 million, or 26.1% in the quarter ended September 30, 2005 compared with the quarter ended September 30, 2004. Deposit related fees increased $1.2 million, or 38.9%, to $4.3 million in the current quarter from $3.1 million in the comparable quarter in fiscal 2004.

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