Staff Report
Published Jan. 27, 2010

First Financial Holdings, the parent company of First Federal Savings and Loan Association of Charleston, reported today that it lost $4.5 million in the quarter ended Dec. 31.

During the same quarter the previous year, First Financial lost $6.5 million.

First Financial warned earlier this month that it would be reporting a loss today because of a continued decline in real estate values.

In today’s report, First Financial said it recorded a provision for loan losses of $25.3 million for the quarter, compared to $21.3 million for the quarter ended Sept. 30 and $20.5 million for the quarter ended Dec. 31, 2008.

Problem assets represented 3.73% of total assets for the most recent quarter. By comparison, the ratio of problem assets to total assets in the prior quarter was 2.92%. In the quarter ended Dec. 31, 2008, the ratio was 1.33%.

Mortgage banking income was $2.4 million for the first quarter of fiscal 2010, First Financial said. That was down 9.8% from the prior quarter but up 37% from the quarter ended Dec. 31, 2008.

First Federal announced in December that it had donated a building in Florence to the Greater Florence Chamber of Commerce, which needed more space. Hood said the bank needed a smaller space in Florence. The donation resulted in a tax benefit of $636,000 for the 2010 fiscal year.

First Financial’s total assets as of Dec. 31 were $3.5 billion. Its loans receivable totaled $2.6 billion and deposits totaled $2.3 billion.

First Financial, which received money through the U.S. Treasury’s Capital Purchase Program in 2008, paid a dividend of $813,000 to the government during its first quarter.

“Our core operating results remain strong,” Hood said today. “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.”

First Federal operates 65 offices spread throughout the Charleston area; Horry, Georgetown, Florence and Beaufort counties in South Carolina; and Brunswick, New Hanover and Pender counties in North Carolina. It is the largest bank based in the Charleston market and has the second-largest share of deposits in the metro area.

First Financial also provides insurance and brokerage services through First Southeast Insurance Services, The Kimbrell Insurance Group and First Southeast Investor Services.