CHARLESTON, S.C., April 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 second quarter of its fiscal year ending September 30, 2010. The net loss for the quarter ended March 31, 2010 was ($19.1) million compared to net income of $3.1 million from the comparative quarter ended March 31, 2009. Basic and diluted loss per share was ($1.15) for the current quarter, compared to $0.27 income per basic and diluted share for the quarter ended March 31, 2009. Including the preferred stock dividend and related accretion, the net loss to common shareholders was ($20.0) million, or ($1.21) per diluted share, for the second quarter, compared to net income of $2.2 million, or $0.19 per diluted share, for the second quarter one year ago. Net loss and diluted loss per share for the six months ended March 31, 2010 totaled ($23.6) million or ($1.43) compared with a net loss of ($3.4) million or ($0.29) per diluted share, for the six months ended March 31, 2009.
President and Chief Executive Officer A. Thomas Hood commented, "Earnings performance for the quarter was impacted primarily by an increase in our provision for loan losses related to charge-offs as well as credit and collateral value deteriorations which occurred during the quarter." On April 7, 2010, the Company announced an expected increase in second quarter provision for loan losses and net charge-offs. The Company recognized a provision for loan losses of $45.9 million for the quarter ended March 31, 2010 compared to $25.3 million for the quarter ended December 31, 2009, and $12.8 million for the quarter ended March 31, 2009. Hood explained, "We have completed a targeted review of the higher risk sectors of the commercial portfolio – land and acquisition and development loans – and are in the process of targeted reviews of commercial real estate and business loans greater than $1 million which will be completed by June 30, 2010." He also stated, "Losses identified during the quarter as a result of both our targeted and our regular ongoing loan reviews have been appropriately charged-off or reserved. We believe loan loss provisions and charge-offs will remain elevated through 2010 because of the continued deterioration in the real estate sector and the weak economy." The Company increased its allowance for loan losses as a percent of total loans from 278 basis points at December 31, 2009 to 317 basis points at March 31, 2010. 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 4.37% at March 31, 2010 compared with 3.73% at December 31, 2009 and 1.91% at March 31, 2009. 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 60.9% at March 31, 2010 compared to 67.6% at December 31, 2009 and 86.6% at March 31, 2009. Hood continued, "We are encouraged by the slight improvement in the South Carolina unemployment rate, including the counties in which we operate, during the past two months but we recognize that the state's economy remains fragile."
Compared with the quarter ended December 31, 2009, the net interest margin decreased by two basis points from a net interest margin of 3.94% to 3.92% for the quarter ended March 31, 2010. Net interest income for the quarter ended March 31, 2010 was $31.5 million, decreasing from $32.9 million or 4.2% for the linked quarter ended December 31, 2009. Hood commented, "Our net interest margin decreased slightly primarily due to increased balances in non-accruing loans." Total deposits increased $160.2 million or 7% to $2.44 billion for the quarter ended March 31, 2010 compared to $2.28 billion for the linked quarter ended December 31, 2009.
Mortgage banking income was $2.1 million for the second quarter of fiscal 2010, a decrease of $343 thousand or 14.2% for the linked quarter ended December 31, 2009 and a decrease of $584 thousand or 22.0% for the comparative quarter ended March 31, 2009. The linked quarter decrease is primarily due to a reduction in the volume of loans sold. The Company continues to utilize certain economic hedging strategies to protect the value of our capitalized mortgage servicing asset from interest rate risk.
During the quarter ended March 31, 2010, there was further deterioration in our collateralized debt obligations ("CDOs") portfolio. As a result, the Company recognized an other than temporary impairment (OTTI) charge totaling $1.8 million on ten investments, with one corporate security accounting for $1.1 million of the charge. Total CDOs, comprised of financial institution trust preferred securities, were $4.4 million or less than 1.0% of our total investment portfolio at March 31, 2010.
Core other income, excluding impairment on investment securities and gains on disposition of assets, was $15.7 million for the second quarter of fiscal 2010 compared to $14.3 million for the first quarter of fiscal 2010 and $15.5 million for the quarter ended March 31, 2009. Total revenues, defined as net interest income plus total core other income as defined previously, increased to $47.2 million for the quarter ended March 31, 2010, an increase of $4.8 million, or 11.4%, from $42.4 million during the comparable quarter ended March 31, 2009.
Insurance revenues, including contingent income, for the quarter ended March 31, 2010 were $7.5 million compared to $7.0 million for the comparable quarter one year ago. During the second quarter we experienced increased insurance revenues due to the timing of some of our contingent revenue payments. Over the last two years our contingent revenues have become more evenly spread throughout the year as one of our major insurance carriers began paying contingent income quarterly.
Total other expense increased by $355 thousand, or 1.2%, to $30.9 million for the quarter ended March 31, 2010 compared to $30.6 million for the quarter ended December 31, 2009. The first quarter included $1.2 million in contribution expense for the donation of a bank branch office. Exclusive of this nonrecurring item, core operating expenses actually increased $1.6 million. The primary driver to the increase is salary and employee benefit costs related to higher insurance producer commissions, final settlement of Cape Fear employee costs with the FDIC, and higher health insurance costs during the quarter as compared to the prior quarter. Increased FDIC assessments and higher legal fees during the quarter also contributed to the higher operating expenses.
Hood noted, "In late December 2009, First Federal increased its Correspondent Lending presence in South and North Carolina, and expanded into Virginia. This summer, we will be relocating one branch in the Wilmington, North Carolina market and in October, we will be opening a new in-store location in Garden City, South Carolina. Additionally, we have signed a non-binding letter of intent to open an in-store location in the Bluffton, South Carolina market."
The Company also announced today that its Board of Directors has declared a regular quarterly cash dividend of five cents ($0.05) per share. The dividend is payable May 21, 2010 to stockholders of record as of May 7, 2010. Hood continued, "Our board of directors carefully evaluates the level of our dividend each quarter. Given the need to preserve capital through these uncertain economic times, we continue to believe this is the most appropriate action at this time."
Hood concluded, "As we move through fiscal 2010 and into fiscal 2011, our priorities will continue to be the resolution of our problem assets and a return to profitability. Our board of directors, officers and staff remain committed to finding the best financial solutions for our customers and the best results for our shareholders."
As of March 31, 2010, First Financial's total assets were $3.4 billion, net loans receivable totaled $2.5 billion and deposits were $2.4 billion. Stockholders' equity was $335.0 million and book value per common share totaled $16.34 at March 31, 2010. Our consolidated equity-to-assets ratio was 9.9% at March 31, 2010, compared to 10.2% and 7.9% at December 31 and March 31, 2009, respectively. As of March 31, 2010, First Federal, our thrift subsidiary, remained categorized as "well capitalized" under regulatory standards. First Federal's total risk based capital ratio was 11.10% at March 31, 2010, compared to 11.05% and 10.95% at December 31 and March 31, 2009, respectively.
As a participant in the Treasury's Capital Purchase Program, the Company continues to use this capital to help borrowers avoid foreclosure 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 second quarter of fiscal 2010.
First Federal 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 (EDT), April 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 these forward-looking statements as a result of a wide range of factors. These factors include, but are 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 and trend of loan delinquencies and charge-offs, changes in our allowance for loan losses and provision for loan losses that may be affected by deterioration in the housing and real estate markets; results of examinations by our banking regulators, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; our ability to control operating costs and expenses, 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 or (843) 729-7005.
FIRST FINANCIAL HOLDINGS, INC. | |||||
Unaudited Condensed Consolidated Financial Highlights | |||||
(in thousands, except share data) | |||||
Three Months Ended | Six Months Ended | ||||
Statements of Income | 03/31/10 | 03/31/09 | 12/31/09 | 03/31/10 | 03/31/09 |
Interest income | $ 45,416 | $ 43,731 | $ 48,100 | $ 93,516 | $ 87,715 |
Interest expense | 13,920 | 16,770 | 15,212 | 29,132 | 35,623 |
Net interest income | 31,496 | 26,961 | 32,888 | 64,384 | 52,092 |
Provision for loan losses | (45,915) | (12,765) | (25,327) | (71,242) | (33,236) |
Net interest income after provision | (14,419) | 14,196 | 7,561 | (6,858) | 18,856 |
Other income | |||||
Impairment on investment securities | (1,818) | (857) | (494) | (2,312) | (3,001) |
Brokerage fees | 550 | 632 | 496 | 1,046 | 1,112 |
Insurance revenues | 7,502 | 6,966 | 5,423 | 12,925 | 12,211 |
Service charges and fees on deposit accounts | 5,708 | 5,280 | 5,817 | 11,525 | 10,949 |
Mortgage banking income | 2,068 | 2,652 | 2,411 | 4,479 | 4,412 |
Gains on disposition of assets | 46 | 36 | 1,275 | 1,321 | 88 |
Other | (83) | (69) | 166 | 83 | 128 |
Total other income | 13,973 | 14,640 | 15,094 | 29,067 | 25,899 |
Other expenses | |||||
Salaries and employee benefits | 19,139 | 13,637 | 17,878 | 37,017 | 30,799 |
Occupancy costs | 2,439 | 2,129 | 2,444 | 4,883 | 4,274 |
Marketing | 559 | 422 | 568 | 1,127 | 1,072 |
Furniture and equipment expense | 2,052 | 1,572 | 2,139 | 4,191 | 3,067 |
Other | 6,717 | 6,085 | 7,522 | 14,239 | 11,229 |
Total other expenses | 30,906 | 23,845 | 30,551 | 61,457 | 50,441 |
Income (loss) before income taxes | (31,352) | 4,991 | (7,896) | (39,248) | (5,686) |
Provision for income taxes | (12,296) | 1,872 | (3,364) | (15,660) | (2,258) |
Net income (loss) | (19,056) | 3,119 | (4,532) | (23,588) | (3,428) |
Preferred stock dividend | 813 | 813 | 813 | 1,626 | 1,038 |
Accretion on preferred stock discount | 138 | 130 | 136 | 274 | 166 |
Net income (loss) available to common shareholders | $ (20,007) | $ 2,176 | $ (5,481) | $ (25,488) | $ (4,632) |
Earnings (loss) per share net income: | |||||
Basic | $ (1.15) | $ 0.27 | $ (0.28) | $ (1.43) | $ (0.29) |
Diluted | $ (1.15) | $ 0.27 | $ (0.28) | $ (1.43) | $ (0.29) |
Earnings (loss) per share available to common shareholders: | |||||
Basic | $ (1.21) | $ 0.19 | $ (0.33) | $ (1.54) | $ (0.40) |
Diluted | $ (1.21) | $ 0.19 | $ (0.33) | $ (1.54) | $ (0.40) |
Average number shares outstanding | 16,526 | 11,699 | 16,464 | 16,495 | 11,697 |
Average number diluted shares outstanding | 16,526 | 11,699 | 16,464 | 16,495 | 11,697 |
Ratios: | |||||
Return on average equity | (22.02%) | 5.26% | (5.08%) | (13.44%) | (3.13%) |
Return on average assets | (2.22%) | 0.40% | (0.52%) | (1.37%) | (0.22%) |
Net interest margin | 3.92% | 3.64% | 3.94% | 3.93% | 3.56% |
Total other expense / average assets | 3.61% | 3.05% | 3.50% | 3.56% | 3.28% |
Efficiency ratio (1) | 62.87% | 55.74% | 60.20% | 61.54% | 61.71% |
Net charge-offs / average gross loans, annualized | 5.56% | 1.13% | 3.04% | 4.30% | 0.81% |
(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 | 03/31/10 | 03/31/09 | 12/31/09 |
Assets | |||
Cash and cash equivalents | $ 62,087 | $ 66,007 | $ 66,429 |
Investments | 80,742 | 52,548 | 81,407 |
Mortgage-backed securities | 434,309 | 538,402 | 465,983 |
Loans receivable, net | 2,529,484 | 2,333,846 | 2,570,668 |
Loan held for sale | 12,681 | 48,319 | 22,903 |
Office properties, net | 83,417 | 81,751 | 80,113 |
Real estate owned | 11,957 | 6,312 | 20,864 |
Intangible assets | 38,252 | 35,968 | 38,495 |
Mortgage servicing rights | 12,279 | 8,221 | 12,411 |
FDIC indemnification receivable, net | 65,461 | -- | 64,130 |
Other assets | 50,198 | 35,165 | 52,745 |
Total Assets | $ 3,380,867 | $ 3,206,539 | $ 3,476,148 |
Liabilities and Stockholders' Equity | |||
Deposits | $ 2,437,592 | $ 1,995,057 | $ 2,277,439 |
Advances from FHLB | 530,493 | 609,000 | 565,622 |
Other borrowings | 47,204 | 310,204 | 228,204 |
Other liabilities | 30,577 | 38,043 | 50,429 |
Total Liabilities | 3,045,866 | 2,952,304 | 3,121,694 |
Stockholders' equity | |||
Stockholders' equity | 433,745 | 361,559 | 454,380 |
Treasury stock | (103,563) | (103,563) | (103,563) |
Accumulated other comprehensive income (loss) | 4,819 | (3,761) | 3,637 |
Total stockholders' equity | 335,001 | 254,235 | 354,454 |
Total liabilities and stockholders' equity | $ 3,380,867 | $ 3,206,539 | $ 3,476,148 |
Stockholders' equity to total assets | 9.91% | 7.93% | 10.20% |
Common shares outstanding | 16,527 | 11,699 | 16,526 |
Book value per common share | $ 16.34 | $ 16.18 | $ 17.52 |
Tangible book value per common share | $ 14.02 | $ 13.10 | $ 15.19 |
Credit quality - quarterly results | |||
Total reserves for loan losses | $ 82,731 | $ 47,490 | $ 73,534 |
Loan loss reserves / loans | 3.17% | 1.99% | 2.78% |
Reserves / non-performing loans | 60.94% | 86.57% | 67.55% |
Provision for losses | $ 45,915 | $ 12,765 | $ 25,327 |
Net loan charge-offs | $ 36,718 | $ 6,803 | $ 20,266 |
Problem assets | |||
Non-accrual loans | $ 135,658 | $ 54,769 | $ 108,742 |
Accruing loans 90 days or more past due | 104 | 86 | 124 |
REO through foreclosure | 11,957 | 6,312 | 20,864 |
Total | $ 147,719 | $ 61,167 | $ 129,730 |
As a percent of total assets | 4.37% | 1.91% | 3.73% |
First Financial Holdings, Inc. | |||||
As of the Quarter Ended (Unaudited) | |||||
(dollars in thousands) | |||||
BALANCE SHEET | 03/31/10 | 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 |
Assets | |||||
Cash and cash equivalents | $ 62,087 | $ 66,429 | $ 78,070 | $ 92,097 | $ 66,007 |
Investments | 80,742 | 81,407 | 82,298 | 85,024 | 52,548 |
Mortgage-backed securities | 434,309 | 465,983 | 478,980 | 522,355 | 538,402 |
Loans receivable, net | 2,529,484 | 2,570,668 | 2,593,269 | 2,609,498 | 2,333,846 |
Loans held for sale | 12,681 | 22,903 | 25,603 | 63,311 | 48,319 |
Office properties, net | 83,417 | 80,113 | 81,021 | 81,136 | 81,751 |
Real estate owned | 11,957 | 20,864 | 22,002 | 12,927 | 6,312 |
Intangible assets | 38,252 | 38,495 | 37,961 | 35,779 | 35,968 |
Mortgage servicing rights | 12,279 | 12,411 | 11,166 | 10,703 | 8,221 |
FDIC indemnification receivable, net | 65,461 | 64,130 | 62,754 | 61,541 | -- |
Other assets | 50,198 | 52,745 | 37,163 | 32,695 | 35,165 |
Total assets | $ 3,380,867 | $ 3,476,148 | $ 3,510,287 | $ 3,607,066 | $ 3,206,539 |
Liabilities | |||||
Deposits | $ 2,437,592 | $ 2,277,439 | $ 2,303,611 | $ 2,341,055 | $ 1,995,057 |
Advances from FHLB | 530,493 | 565,622 | 492,751 | 492,880 | 609,000 |
Other borrowings | 47,204 | 228,204 | 305,205 | 420,204 | 310,204 |
Other liabilities | 30,577 | 50,429 | 57,071 | 59,898 | 38,043 |
Total liabilities | 3,045,866 | 3,121,694 | 3,158,638 | 3,314,037 | 2,952,304 |
Total stockholders' equity | 335,001 | 354,454 | 351,649 | 293,029 | 254,235 |
Total liabilities and stockholders' equity | $ 3,380,867 | $ 3,476,148 | $ 3,510,287 | $ 3,607,066 | $ 3,206,539 |
Equity/assets | 9.91% | 10.20% | 10.02% | 8.12% | 7.93% |
Total shares o/s | 16,527 | 16,526 | 15,897 | 11,699 | 11,699 |
Book value per share | $ 16.34 | $ 17.52 | $ 18.03 | $ 19.49 | $ 16.18 |
AVERAGE BALANCES | |||||
Total assets | $ 3,429,172 | $ 3,487,674 | $ 3,563,973 | $ 3,338,110 | $ 3,130,253 |
Earning assets | 3,256,664 | 3,311,040 | 3,382,326 | 3,427,813 | 3,004,582 |
Gross Loans | 2,643,273 | 2,663,543 | 2,666,444 | 2,632,478 | 2,413,270 |
Costing liabilities | 3,057,686 | 3,057,530 | 3,262,178 | 3,232,640 | 2,950,628 |
Deposits | 2,318,184 | 2,293,892 | 2,347,331 | 2,233,984 | 1,963,862 |
Equity | 346,194 | 356,897 | 309,287 | 265,445 | 230,051 |
BALANCE SHEET | 12/31/08 | 09/30/08 | 06/30/08 | 03/31/08 |
Assets | ||||
Cash and cash equivalents | $ 62,334 | $ 62,949 | $ 72,735 | $ 77,722 |
Investments | 57,585 | 60,969 | 61,760 | 64,641 |
Mortgage-backed securities | 403,797 | 351,110 | 353,257 | 370,848 |
Loans receivable, net | 2,334,254 | 2,324,537 | 2,263,965 | 2,218,027 |
Loans held for sale | 11,804 | 8,731 | 4,519 | 14,031 |
Office properties, net | 82,322 | 78,796 | 77,673 | 76,708 |
Real estate owned | 5,346 | 4,286 | 5,442 | 4,310 |
Intangible assets | 36,156 | 36,241 | 40,401 | 22,420 |
Mortgage servicing rights | 8,225 | 12,550 | 12,754 | 10,685 |
FDIC indemnification receivable, net | -- | -- | -- | -- |
Other assets | 35,470 | 33,825 | 31,522 | 29,112 |
Total assets | $ 3,037,293 | $ 2,973,994 | $ 2,924,028 | $ 2,888,504 |
Liabilities | ||||
Deposits | $ 1,926,624 | $ 1,851,102 | $ 1,865,261 | $ 1,875,099 |
Advances from FHLB | 746,000 | 818,000 | 747,000 | 719,000 |
Other borrowings | 125,204 | 75,205 | 69,204 | 52,204 |
Other liabilities | 19,387 | 46,209 | 54,585 | 55,575 |
Total liabilities | 2,817,215 | 2,790,516 | 2,736,050 | 2,701,878 |
Total stockholders' equity | 220,078 | 183,478 | 187,978 | 186,626 |
Total liabilities and stockholders' equity | $ 3,037,293 | $ 2,973,994 | $ 2,924,028 | $ 2,888,504 |
Equity/assets | 7.25% | 6.17% | 6.43% | 6.46% |
Total shares o/s | 11,697 | 11,692 | 11,674 | 11,663 |
Book value per share | $ 13.26 | $ 15.69 | $ 16.10 | $ 16.00 |
AVERAGE BALANCES | ||||
Total assets | $ 3,005,644 | $ 2,949,011 | $ 2,906,266 | $ 2,853,106 |
Earning assets | 2,867,614 | 2,763,247 | 2,714,252 | 2,655,387 |
Gross Loans | 2,371,209 | 2,317,902 | 2,264,167 | 2,228,029 |
Costing liabilities | 2,807,944 | 2,730,439 | 2,671,260 | 2,612,019 |
Deposits | 1,888,863 | 1,858,182 | 1,870,180 | 1,840,842 |
Equity | 201,778 | 185,728 | 187,302 | 186,961 |
First Financial Holdings, Inc. | |||||||||
(dollars in thousands) | |||||||||
Quarter Ended (Unaudited) | |||||||||
03/31/10 | 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 | 09/30/08 | 06/30/08 | 03/31/08 | |
STATEMENT OF OPERATIONS | |||||||||
Total interest income | $ 45,416 | $ 48,100 | $ 49,815 | $ 51,266 | $ 43,731 | $ 43,984 | $ 43,398 | $ 43,229 | $ 43,810 |
Total interest expense | 13,920 | 15,212 | 15,764 | 15,727 | 16,770 | 18,853 | 19,243 | 19,220 | 21,669 |
Net interest income | 31,496 | 32,888 | 34,051 | 35,539 | 26,961 | 25,131 | 24,155 | 24,009 | 22,141 |
Provision for loan losses | (45,915) | (25,327) | (21,280) | (12,367) | (12,765) | (20,471) | (5,218) | (4,907) | (3,567) |
Net interest income after provision | (14,419) | 7,561 | 12,771 | 23,172 | 14,196 | 4,660 | 18,937 | 19,102 | 18,574 |
Other income | |||||||||
Impairment on investment securities | (1,818) | (494) | (615) | (377) | (857) | (2,144) | (486) | -- | -- |
Gain on sale of investment securities | -- | -- | -- | -- | -- | -- | -- | 4 | 645 |
Brokerage fees | 550 | 496 | 533 | 383 | 632 | 480 | 672 | 665 | 906 |
Insurance revenues | 7,502 | 5,423 | 5,921 | 6,535 | 6,966 | 5,245 | 6,352 | 7,432 | 6,769 |
Service charges and fees on deposit accounts | 5,708 | 5,817 | 5,864 | 5,688 | 5,280 | 5,669 | 6,133 | 5,912 | 5,780 |
Mortgage banking income | 2,068 | 2,411 | 2,672 | 986 | 2,652 | 1,760 | 821 | 1,828 | 2,961 |
Gains (losses) on disposition of properties | 46 | 1,275 | 37 | 37 | 36 | 52 | 913 | 43 | 59 |
Other | (83) | 166 | 978 | (280) | (69) | 197 | 663 | 504 | 681 |
Total other income | 13,973 | 15,094 | 15,390 | 12,972 | 14,640 | 11,259 | 15,068 | 16,388 | 17,801 |
Other expenses | |||||||||
Salaries & employee benefits | 19,139 | 17,878 | 18,227 | 15,640 | 13,637 | 17,162 | 14,697 | 16,625 | 15,963 |
Occupancy costs | 2,439 | 2,444 | 2,446 | 2,215 | 2,129 | 2,145 | 2,120 | 2,016 | 2,012 |
Marketing | 559 | 568 | 586 | 479 | 422 | 650 | 460 | 685 | 570 |
Furniture and equipment expense | 2,052 | 2,139 | 2,277 | 2,202 | 1,572 | 1,495 | 1,629 | 1,445 | 1,374 |
Other | 6,717 | 7,522 | 7,088 | 7,611 | 6,085 | 5,144 | 5,002 | 4,944 | 4,143 |
Total other expenses | 30,906 | 30,551 | 30,624 | 28,147 | 23,845 | 26,596 | 23,908 | 25,715 | 24,062 |
Income (loss) before taxes | (31,352) | (7,896) | (2,463) | 7,997 | 4,991 | (10,677) | 10,097 | 9,775 | 12,313 |
Provision for income taxes | (12,296) | (3,364) | (1,199) | 2,842 | 1,872 | (4,130) | 3,789 | 3,873 | 4,783 |
Income before extraordinary items | (19,056) | (4,532) | (1,264) | 5,155 | 3,119 | (6,547) | $ 6,308 | $ 5,902 | $ 7,530 |
Extraordinary items | |||||||||
Gain on acquisition, less income tax of $18,833 | -- | -- | -- | 28,857 | -- | -- | -- | -- | -- |
Net Income | (19,056) | (4,532) | (1,264) | 34,012 | 3,119 | (6,547) | 6,308 | 5,902 | 7,530 |
Preferred stock dividend | 813 | 813 | 802 | 813 | 813 | 235 | -- | -- | -- |
Accretion on preferred stock discount | 138 | 136 | 127 | 132 | 130 | 42 | -- | -- | -- |
Net Income (loss) available to common shareholders | $ (20,007) | $ (5,481) | $ (2,193) | $ 33,067 | $ 2,176 | $ (6,824) | $ 6,308 | $ 5,902 | $ 7,530 |
Pre-tax, pre-provision earnings | $ 14,563 | $ 17,431 | $ 18,817 | $ 20,364 | $ 17,756 | $ 9,794 | $ 15,315 | $ 14,682 | $ 15,880 |
Note: Certain prior period amounts have been reclassified to conform to current period presentation. | |||||||||
Average shares o/s, basic | 16,526 | 16,464 | 11,791 | 11,699 | 11,699 | 11,694 | 11,683 | 11,668 | 11,659 |
Average shares o/s, diluted | 16,526 | 16,464 | 11,791 | 11,699 | 11,699 | 11,694 | 11,688 | 11,679 | 11,675 |
Earnings per share before extraordinary items -basic | $ (1.15) | $ (0.28) | $ (0.11) | $ 0.44 | $ 0.27 | $ (0.56) | $ 0.54 | $ 0.51 | $ 0.65 |
Earnings per share before extraordinary items -diluted | $ (1.15) | $ (0.28) | $ (0.11) | $ 0.44 | $ 0.27 | $ (0.56) | $ 0.54 | $ 0.51 | $ 0.64 |
Earnings per share Net Income -basic | $ (1.15) | $ (0.28) | $ (0.11) | $ 2.91 | $ 0.27 | $ (0.56) | $ 0.54 | $ 0.51 | $ 0.65 |
Earnings per share Net Income -diluted | $ (1.15) | $ (0.28) | $ (0.11) | $ 2.91 | $ 0.27 | $ (0.56) | $ 0.54 | $ 0.51 | $ 0.64 |
Earnings per share Available to common shareholders - basic | $ (1.21) | $ (0.33) | $ (0.19) | $ 2.83 | $ 0.19 | $ (0.58) | $ 0.54 | $ 0.51 | $ 0.65 |
Earnings per share Available to common shareholders - diluted | $ (1.21) | $ (0.33) | $ (0.19) | $ 2.83 | $ 0.19 | $ (0.58) | $ 0.54 | $ 0.51 | $ 0.64 |
Dividends paid per share, authorized | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.255 | $ 0.255 | $ 0.255 | $ 0.255 |
Fiscal Year | ||
09/30/09 | 09/30/08 | |
STATEMENT OF OPERATIONS | ||
Total interest income | $ 188,796 | $ 174,772 |
Total interest expense | 67,114 | 83,408 |
Net interest income | 121,682 | 91,364 |
Provision for loan losses | (66,883) | (16,939) |
Net interest income after provision | 54,799 | 74,425 |
Other income | ||
Impairment on investment securities | (3,993) | (486) |
Gain on sale of investment securities | -- | 750 |
Brokerage fees | 2,028 | 2,923 |
Insurance revenues | 24,667 | 24,830 |
Service charges and fees on deposit accounts | 22,501 | 23,901 |
Mortgage banking income | 8,070 | 7,456 |
Gains (losses) on disposition of properties | 162 | 1,052 |
Other | 826 | 2,475 |
Total other income | 54,261 | 62,901 |
Other expenses | ||
Salaries & employee benefits | 64,666 | 65,271 |
Occupancy costs | 8,935 | 8,210 |
Marketing | 2,137 | 2,408 |
Furniture and equipment expense | 7,546 | 5,867 |
Other | 25,928 | 18,573 |
Total other expenses | 109,212 | 100,329 |
Income (loss) before taxes | (152) | 36,997 |
Provision for income taxes | (615) | 14,359 |
Income before extraordinary items | $ 463 | $ 22,638 |
Extraordinary items | ||
Gain on acquisition, less income tax of $18,833 | 28,857 | -- |
Net Income | 29,320 | 22,638 |
Preferred stock dividend | 2,663 | -- |
Accretion on preferred stock discount | 431 | -- |
Net Income (loss) available to common shareholders | $ 26,226 | $ 22,638 |
Pre-tax, pre-provision earnings | $ 66,731 | $ 53,936 |
Note: Certain prior period amounts have been reclassified to conform to current period presentation. | ||
Average shares o/s, basic | 11,721 | 11,664 |
Average shares o/s, diluted | 11,721 | 11,692 |
Earnings per share before extraordinary items -basic | $ 0.04 | $ 1.94 |
Earnings per share before extraordinary items -diluted | $ 0.04 | $ 1.94 |
Earnings per share Net Income -basic | $ 2.50 | $ 1.94 |
Earnings per share Net Income -diluted | $ 2.50 | $ 1.94 |
Earnings per share Available to common shareholders - basic | $ 2.24 | $ 1.94 |
Earnings per share Available to common shareholders - diluted | $ 2.24 | $ 1.94 |
Dividends paid per share, authorized | $ 0.41 | $ 1.02 |
First Financial Holdings, Inc. | |||||||||
(dollars in thousands) | |||||||||
Quarter Ended (unaudited) | |||||||||
03/31/10 | 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 | 09/30/08 | 06/30/08 | 03/31/08 | |
OTHER RATIOS | |||||||||
Return on Average Equity | (22.02%) | (5.08%) | (1.57%) | 7.16% | 5.26% | (12.98%) | 13.59% | 12.60% | 16.11% |
Return on Average Assets | (2.22%) | (0.52%) | (0.14%) | 0.57% | 0.40% | (0.87%) | 0.86% | 0.81% | 1.06% |
Average yield on earning assets | 5.66% | 5.76% | 5.84% | 6.00% | 5.90% | 6.08% | 6.24% | 6.40% | 6.63% |
Average cost of paying liabilities | 1.85% | 1.97% | 1.90% | 1.94% | 2.29% | 2.64% | 2.80% | 2.89% | 3.34% |
Gross spread | 3.81% | 3.79% | 3.94% | 4.06% | 3.61% | 3.44% | 3.44% | 3.51% | 3.29% |
Net interest margin | 3.92% | 3.94% | 3.99% | 4.16% | 3.64% | 3.48% | 3.48% | 3.56% | 3.35% |
Operating exp./avg. assets | 3.61% | 3.50% | 3.44% | 3.12% | 3.05% | 3.54% | 3.24% | 3.54% | 3.37% |
Efficiency ratio | 62.87% | 60.20% | 60.46% | 56.42% | 55.74% | 68.20% | 61.36% | 63.47% | 61.39% |
Note: Average yields, costs and margins for prior periods adjusted to actual days | |||||||||
COMPOSITION OF GROSS LOAN PORTFOLIO | |||||||||
Residential Mortgages (1-4 Family) | $ 973,670 | $ 966,211 | $ 949,518 | $ 927,296 | $ 882,511 | $ 882,857 | $ 886,488 | $ 874,216 | $ 871,774 |
Residential Construction (1-4 Family) | 31,593 | 32,804 | 41,133 | 56,683 | 56,438 | 67,980 | 70,396 | 73,064 | 75,590 |
Commercial Real Estate | 434,310 | 436,842 | 435,298 | 435,923 | 322,663 | 314,516 | 307,903 | 291,712 | 286,316 |
Commercial Construction | 44,176 | 48,439 | 53,219 | 47,397 | 41,490 | 39,380 | 40,827 | 36,791 | 31,142 |
Commercial Business | 86,017 | 88,728 | 96,559 | 106,053 | 93,024 | 95,638 | 89,764 | 90,070 | 85,797 |
Land | 250,925 | 278,982 | 300,130 | 306,810 | 251,103 | 252,713 | 247,862 | 243,395 | 235,596 |
Home Equity Lines of Credit | 401,340 | 400,803 | 394,075 | 394,794 | 356,281 | 344,526 | 325,354 | 301,184 | 284,696 |
Manufactured Housing | 255,819 | 250,124 | 244,214 | 239,043 | 232,515 | 227,698 | 223,476 | 218,312 | 211,657 |
Credit Cards | 17,797 | 18,471 | 17,483 | 16,949 | 16,128 | 16,790 | 16,125 | 15,824 | 15,638 |
Marine | 70,756 | 73,799 | 76,748 | 77,819 | 77,836 | 79,901 | 83,464 | 83,964 | 81,170 |
Other Consumer | 45,812 | 48,999 | 53,365 | 55,230 | 51,347 | 53,783 | 56,868 | 56,499 | 56,561 |
2,612,215 | 2,644,202 | 2,661,742 | 2,663,997 | 2,381,336 | 2,375,782 | 2,348,527 | 2,285,031 | 2,235,937 | |
Less: | |||||||||
Allowance for Loan Losses | 82,731 | 73,534 | 68,473 | 54,499 | 47,490 | 41,528 | 23,990 | 21,066 | 17,910 |
Total | $ 2,529,484 | $ 2,570,668 | $ 2,593,269 | $ 2,609,498 | $ 2,333,846 | $ 2,334,254 | $ 2,324,537 | $ 2,263,965 | $ 2,218,027 |
Loans Held for Sale | $ 12,681 | $ 22,903 | $ 25,603 | $ 63,311 | $ 48,319 | $ 11,804 | $ 8,731 | $ 4,519 | $ 14,031 |
Note: The Composition of Gross Loans has been changed to collateral type consistent with 10Qs as filed with the SEC. | |||||||||
COMPOSITION OF DEPOSITS | |||||||||
Checking | $ 570,872 | $ 562,060 | $ 527,795 | $ 543,232 | $ 500,619 | $ 461,179 | $ 474,301 | $ 488,595 | $ 483,472 |
Passbook | 163,451 | 153,674 | 154,342 | 145,541 | 137,854 | 126,261 | 129,466 | 133,414 | 130,863 |
Money Market | 345,752 | 338,930 | 344,220 | 341,209 | 296,557 | 303,866 | 345,327 | 372,617 | 379,380 |
Core Deposits | 1,080,075 | 1,054,664 | 1,026,357 | 1,029,982 | 935,030 | 891,306 | 949,094 | 994,626 | 993,715 |
Time Deposits | 1,357,517 | 1,222,775 | 1,277,254 | 1,311,073 | 1,060,027 | 1,035,318 | 902,008 | 870,635 | 881,384 |
Total Deposits | $ 2,437,592 | $ 2,277,439 | $ 2,303,611 | $ 2,341,055 | $ 1,995,057 | $ 1,926,624 | $ 1,851,102 | $ 1,865,261 | $ 1,875,099 |
ASSET QUALITY | |||||||||
Non-accrual loans | $ 135,658 | $ 108,742 | $ 80,432 | $ 66,300 | $ 54,769 | $ 35,070 | $ 20,557 | $ 16,562 | $ 12,800 |
Loans 90 days or more past due | 104 | 124 | 121 | 153 | 86 | 116 | 76 | 79 | 99 |
REO through foreclosure | 11,957 | 20,864 | 22,002 | 12,927 | 6,312 | 5,346 | 4,286 | 5,442 | 4,310 |
$ 147,719 | $ 129,730 | $ 102,555 | $ 79,380 | $ 61,167 | $ 40,532 | $ 24,919 | $ 22,083 | $ 17,209 | |
LOAN AND REO LOSS RESERVES | |||||||||
Total allowance for loan losses | $ 82,731 | $ 73,534 | $ 68,473 | $ 54,499 | $ 47,490 | $ 41,528 | $ 23,990 | $ 21,066 | $ 17,910 |
Loan loss reserves/ loans | 3.17% | 2.78% | 2.57% | 2.05% | 1.99% | 1.74% | 1.02% | 0.92% | 0.80% |
Provision for losses | 45,915 | 25,327 | 21,280 | 12,367 | 12,765 | 20,471 | 5,218 | 4,907 | 3,567 |
Net loan charge-offs | 36,718 | 20,266 | 7,307 | 9,490 | 6,803 | 2,933 | 2,251 | 1,785 | 2,358 |
Net charge-offs/avg gross loans | 1.39% | 0.76% | 0.27% | 0.36% | 0.28% | 0.12% | 0.10% | 0.08% | 0.11% |
Annualized net charge-offs/avg gross loans | 5.56% | 3.04% | 1.10% | 1.43% | 1.13% | 0.49% | 0.39% | 0.32% | 0.43% |
Fiscal Year | ||
09/30/09 | 09/30/08 | |
OTHER RATIOS | ||
Return on Average Equity | 0.17% | 12.16% |
Return on Average Assets | 0.01% | 0.79% |
Average yield on earning assets | 5.89% | 6.53% |
Average cost of paying liabilities | 2.22% | 3.17% |
Gross spread | 3.68% | 3.36% |
Net interest margin | 3.79% | 3.41% |
Operating exp./avg. assets | 3.31% | 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) | |||
03/31/10 | 12/31/09 | 09/30/09 | |
COMPOSITION OF NET CHARGE OFFS | |||
Residential Mortgages (1-4 Family) | 3,821 | $ 1,328 | $ 943 |
Residential Construction (1-4 Family) | 1,096 | 807 | 569 |
Commercial Real Estate | 7,131 | 1,022 | 166 |
Commercial Construction | -- | 953 | -- |
Commercial Business | 1,027 | 652 | 654 |
Land | 18,313 | 10,657 | 1,501 |
Home Equity Lines of Credit | 3,309 | 2,618 | 1,549 |
Manufactured Housing | 638 | 745 | 866 |
Credit Cards | 264 | 254 | 228 |
Marine | 621 | 612 | 377 |
Other Consumer | 498 | 618 | 454 |
$ 36,718 | $ 20,266 | $ 7,307 | |
NONACCRUAL LOANS | |||
Residential Mortgages (1-4 Family) | $ 27,692 | $ 25,731 | $ 19,820 |
Residential Construction (1-4 Family) | 4,028 | 4,041 | 4,448 |
Commercial Real Estate | 20,885 | 19,217 | 6,795 |
Commercial Construction | 3,353 | -- | 2,284 |
Commercial Business | 4,270 | 3,315 | 678 |
Land | 62,881 | 45,314 | 38,438 |
Home Equity Lines of Credit | 9,341 | 7,996 | 5,466 |
Manufactured Housing | 2,899 | 2,715 | 2,280 |
Marine | 166 | 245 | 142 |
Other Consumer | 143 | 168 | 81 |
$ 135,658 | $ 108,742 | $ 80,432 | |
DELINQUENT LOANS (> 30 days past due, not on nonaccrual) | |||
Residential Mortgages (1-4 Family) | $ 12,253 | $ 12,754 | $ 13,603 |
Residential Construction (1-4 Family) | 181 | 947 | 662 |
Commercial Real Estate | 10,148 | 6,577 | 4,249 |
Commercial Construction | 1,420 | -- | -- |
Commercial Business | 2,769 | 2,778 | 586 |
Land | 3,105 | 8,474 | 9,242 |
Home Equity Lines of Credit | 5,217 | 4,721 | 2,231 |
Manufactured Housing | 3,807 | 3,697 | 3,132 |
Credit Cards | 381 | 363 | 224 |
Marine | 981 | 1,755 | 811 |
Other Consumer | 317 | 1,057 | 793 |
$ 40,579 | $ 43,123 | $ 35,533 | |
DELINQUENT LOANS TO GROSS LOAN BALANCE | |||
Residential Mortgages (1-4 Family) | 1.26% | 1.32% | 1.43% |
Residential Construction (1-4 Family) | 0.57% | 2.89% | 1.61% |
Commercial Real Estate | 2.34% | 1.51% | 0.98% |
Commercial Construction | 3.21% | -- | -- |
Commercial Business | 3.22% | 3.13% | 0.61% |
Land | 1.24% | 3.04% | 3.08% |
Home Equity Lines of Credit | 1.30% | 1.18% | 0.57% |
Manufactured Housing | 1.49% | 1.48% | 1.28% |
Credit Cards | 2.14% | 1.97% | 1.28% |
Marine | 1.39% | 2.38% | 1.06% |
Other Consumer | 0.69% | 2.16% | 1.49% |
1.55% | 1.63% | 1.33% |