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First Financial Holdings Inc (FFCH) SEC Filing 10-Q Quarterly report for the period ending Saturday, June 30, 2012

First Financial Holdings Inc

CIK: 787075 Ticker: FFCH
Exhibit 99.1
 
FIRST FINANCIAL HOLDINGS, INC.


FIRST FINANCIAL HOLDINGS, INC. ANNOUNCES SECOND QUARTER EARNINGS
AND DECLARES CASH DIVIDEND


CHARLESTON, SOUTH CAROLINA, July 26, 2012
– First Financial Holdings, Inc. (“First Financial,” NASDAQ: FFCH), the holding company for First Federal Bank (“First Federal”), announced today net income available to common shareholders of $11.6 million for the three months ended June 30, 2012, compared with $770 thousand for the three months ended March 31, 2012 and a net loss of $(44.0) million for the three months ended June 30, 2011.  Diluted net income per common share was $0.70 for the quarter ended June 30, 2012, compared with $0.05 for the prior quarter and a net loss of $(2.50) for the same quarter last year.  The quarter ended June 30, 2012 included a $9.0 million after-tax gain on the acquisition of Plantation Federal Bank (“Plantation”) and a $3.1 million after-tax net charge related to repositioning the balance sheet, as described below.  The quarter ended June 30, 2011 included additional provision for loan losses of $40.1 million after-tax related to the bulk loan sale.

For the six months ended June 30, 2012, net income available to common shareholders was $12.4 million, compared with a net loss of $(45.4) million for the same period of 2011.  Diluted net income per common share from continuing operations was $0.75, compared with a net loss of $(2.64) for the first six months of 2011.

“First Financial continues to execute on our strategic priorities and we have completed another eventful and successful quarter,” said R. Wayne Hall, president and chief executive officer of First Financial and First Federal.  “Today we reported our fifth consecutive quarter of increased core operating results.  These results reflect the positive momentum we have generated as a result of the strategic initiatives implemented.  We are pleased with the initial successes of our recent acquisitions and look forward to strengthening our ongoing relationships with our new customers.  We believe that the steps taken this quarter to reposition our balance sheet for the future build on the strategies implemented over the last year and will continue to contribute to improved results for our shareholders.”


Highlights for the Quarter

·  
On April 27, 2012, First Federal assumed the deposits and purchased substantially all of the assets of Plantation through a purchase and assumption agreement with the Federal Deposit Insurance Corporation (“FDIC”).  This transaction included $278.7 million of loans and $419.9 million of deposits, at fair value, in the Greenville and Myrtle Beach, South Carolina markets and resulted in a gain on the acquisition of $14.6 million ($9.0 million after-tax).
·  
First Financial also consummated its acquisition of five branches from Liberty Savings Bank, FSB (“Liberty”) in the Hilton Head, South Carolina market during April.  This transaction included $22.2 million of performing loans and $112.9 million of deposits, at fair value.
·  
During the second quarter of 2012, First Financial repositioned its balance sheet by selling $203.6 million of mortgage-backed securities and prepaying $125.0 million of Federal Home Loan Bank (“FHLB”) advances.  These actions resulted in a $5.0 million ($3.1 million after-tax) net reduction to earnings for the quarter.
·  
Net interest margin remained strong for the quarter ended June 30, 2012 at 4.08%, an increase of 24 basis points over the quarter ended March 31, 2012.
·  
Credit metrics remained stable with non-covered nonperforming assets to total assets of 1.45% at June 30, 2012, compared with 1.42% at March 31, 2012.
·  
Net charge-offs totaled $6.7 million for the quarter ended June 30, 2012, compared with $9.5 million for the prior quarter, while the provision for loan losses was $4.7 million and $6.7 million for the quarters ended June 30, 2012 and March 31, 2012, respectively.
·  
First Financial remains well capitalized at June 30, 2012 with total risk-based capital of 15.16%, Tier 1 risk-based capital of 13.89%, and Tier 1 leverage capital of 9.79%.  Tangible common equity to tangible common assets ratio was 6.47% at quarter end.


Balance Sheet Repositioning

In conjunction with the acquisition strategies completed during the second quarter of 2012, First Financial initiated a number of transactions to better position its balance sheet.  The repositioning is expected to enhance net interest income, noninterest income, and net interest margin in future periods.  First Financial prepaid $125.0 million of long-term FHLB advances with an average rate of 3.15%, incurring a termination charge of $8.5 million ($5.3 million after-tax).  To fund the debt prepayment, mortgage-backed securities totaling $203.6 million with an average yield of 1.79% were sold, generating a $3.5 million ($2.2 million after-tax) gain.  In aggregate, these transactions resulted in a net charge of $3.1 million after-tax, or $(0.19) per common share.  The remaining proceeds from the investment sales will be reinvested during the third quarter of 2012 in assets with higher projected returns for the current interest rate environment and outlook.  First Financial believes the balance sheet repositioning is an economically accretive transaction as the net loss is expected to have a breakeven point of less than two years.  In addition to the future revenue enhancements, deleveraging the balance sheet created capital capacity to support the recent acquisitions.
 
 
 

The following information was filed by First Financial Holdings Inc (FFCH) on Thursday, July 26, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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SEC Filing Tools
Ticker: FFCH
CIK: 787075
Form Type: 10-Q Quarterly Report
Accession Number: 0000930413-12-004456
Submitted to the SEC: Thu Aug 09 2012 3:36:26 PM EST
Accepted by the SEC: Thu Aug 09 2012
Period: Saturday, June 30, 2012
Industry: Savings Institutions Not Federally Chartered

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