First Financial Holdings, Inc. Reports Operating Results of $0.82 per share; Increases Quarterly Cash Dividend

COLUMBIA, S.C.--()--First Financial Holdings, Inc. (NASDAQ: SCBT) today released its unaudited results of operations and other financial information for the three-month period ended March 31, 2014. Highlights of the first quarter 2014 include the following:

  • Net income available to common shareholders of $15.8 million, or $0.66 diluted EPS in 1Q 2014, up 20.3%, compared to $13.2 million, or $0.55 diluted EPS in 4Q 2013, and up 48.8% from $10.6 million, or $0.63 diluted EPS in 1Q 2013;
  • Operating earnings of $19.8 million, which exclude merger and branding expenses and include preferred stock dividends, or $0.82 diluted EPS in 1Q 2014, up 2.4%, compared to $19.3 million, or $0.80 diluted EPS in 4Q 2013, and up 65.2% from $12.0 million, or $0.71 diluted EPS in 1Q 2013;
  • Return on average assets was 0.86% annualized in 1Q 2014 compared to 0.70% in 4Q 2013 and 0.84% in 1Q 2013; Operating return on average assets was 1.06% annualized in 1Q 2014 compared to 1.00% in 4Q 2013 and 0.95% in 1Q 2013;
  • Return on average common tangible equity was 12.6% annualized in 1Q 2014 compared to 10.9% in 4Q 2013, and 11.9% in 1Q 2013; Operating return on average tangible common equity was 15.5% in 1Q 2014 compared to 15.5% in 4Q 2013 and 13.3% in 1Q 2013;
  • Tangible common equity per share annualized percentage change increased by 14.5% during the first quarter of 2014;
  • Redeemed all $65.0 million of Series A preferred stock on March 28, 2014;
  • Net charge-offs of non-acquired loans decreased to 0.05% annualized in 1Q 2014, compared to 0.26% annualized in 4Q 2013 and 0.56% annualized in 1Q 2013;
  • Operating efficiency ratio decreased to 64.1% in 1Q2014, compared to 66.3% in 4Q2013 and 64.5% in 1Q2013;
  • Legacy loan growth for 1Q 2014 was $114.7 million or 16.0% annualized; and
  • Core deposit growth, excluding CDs, up $146.5 million or 11.7% annualized in 1Q 2014.

Quarterly Cash Dividend

The Board of Directors of First Financial Holdings, Inc. has declared a quarterly cash dividend of $0.20 per share payable on its common stock. This per share amount is $0.01 per share, or 5.3% higher than the dividend paid in the immediately preceding quarter and is $0.02 per share, or 11.1%, higher than a year ago. The dividend will be payable on May 23, 2014 to shareholders of record as of May 16, 2014.

First Quarter 2014 Financial Performance

Please refer to the accompanying tables for detailed comparative data on results of operations and financial results.

The Company reported consolidated net income available to common shareholders of $15.8 million, or $0.66 per diluted common share for the three months ended March 31, 2014 up from $13.2 million, or $0.55 per diluted common share for the three months ended December 31, 2013. This $2.6 million increase was primarily the result of a reduction in merger and branding expenses and salaries and employee benefits; partially offset by an increase in the provision for loan losses, an increase in the effective tax rate to 34.3% from 34.0%, and a decrease in net interest income.

“We are off to a very solid start in 2014, and our company is continuing to build earnings momentum,” said Robert R. Hill, Jr., CEO of First Financial Holdings, Inc. “The first quarter was highlighted by low credit costs, improved asset quality and expense management, accompanied by strong organic growth in loans and core deposits. These improvements led to record operating earnings of $19.8 million. Our First Federal merger efficiencies helped drive a reduction in expenses of $6.5 million compared to the fourth quarter of 2013. Expenses were reduced or flat in every category with the exception of regulatory charges. Organic loan growth was also strong at 16% annualized and core deposit growth was 11.7%. I am pleased with the quantity and quality of the banking relationships we have had the opportunity to build. These quarterly results have enhanced the returns to our shareholders with an operating return on tangible common equity of 15.5%; a 14.5% annualized increase in tangible book value per common share, and an increase in our cash dividend.”

Asset Quality

During the first quarter of 2014, SCBT continued to experience improvement in asset quality, excluding acquired loans and acquired other real estate owned (OREO), as nonperforming loans declined by $4.8 million, or 11.4%. Non-acquired nonperforming assets (NPAs) as a percentage of total non-acquired loans and repossessed assets declined to 1.66% compared to 1.94% in the fourth quarter of 2013. NPAs, excluding acquired NPAs, declined by $6.1 million from the fourth quarter 2013 level.

At March 31, 2014, the allowance for non-acquired loan losses was $34.7 million or 1.16% of non-acquired period-end loans. The current allowance for loan losses provides 0.93 times coverage of period-end non-acquired nonperforming loans, up from 0.81 times at the end of the fourth quarter of 2013. Net charge-offs within the non-acquired portfolio were $332,000 for the quarter or 0.05% annualized, down from the fourth quarter of 2013 of $1.8 million or 0.26% annualized and down from the first quarter of 2013 of $3.6 million or 0.56% annualized.

OREO decreased modestly by $770,000 from the fourth quarter of 2013. OREO costs were relatively flat from the fourth quarter of 2013, down $106,000.

Net Interest Income and Margin

Non-taxable equivalent net interest income was $83.3 million for the first quarter of 2014, a $1.0 million decrease from the fourth quarter of 2013, resulting from the following:

1. A $145.5 million decrease in the average balance of acquired loans from the fourth quarter of 2013;

2. A decrease of 15 basis points in the yield on non-acquired loans; partially offset by

3. A $101.7 million increase in the average balance of investment securities resulting from the full quarter impact of the $205.9 million in GSEs and mortgage backed securities purchased during the fourth quarter of 2013.

Tax-equivalent net interest margin increased 8 basis points from the fourth quarter of 2013 and by 5 basis points from the first quarter of 2013. The Company’s average yield on interest-earning assets increased 6 basis points while the average rate on interest-bearing liabilities declined 2 basis points from the fourth quarter of 2013. During the first quarter of 2014, the Company’s average total assets remained at approximately $8.0 billion and average earning assets decreased slightly to $6.8 billion. Average interest-bearing liabilities declined by approximately $20.4 million.

Noninterest Income and Expense

Noninterest income was relatively flat for the first quarter of 2014 compared to the fourth quarter of 2013. Increases in mortgage banking income, trust and investment services income, and a reduction in the negative accretion on the indemnification asset, all totaling $1.4 million were offset by the combined $1.4 million decrease in service charges on deposit accounts and bankcard services income. Compared to the first quarter of 2013, noninterest income grew significantly by $11.2 million due to the First Financial merger.

Noninterest expense was $77.4 million in the first quarter of 2014, down from $83.9 million from the fourth quarter of 2013. This decrease from the fourth quarter of 2013 was primarily due to the impact of the cost saves being realized from the integration effort and reduced merger related cost. During the quarter, the company incurred $1.3 million of branding related cost. All expense categories either declined or were flat compared to fourth quarter of 2013, except for the FDIC assessment and other regulatory charges, which increased by $383,000. OREO and loan related charges remained level with the fourth quarter at $4.3 million. During the quarter, 24 legacy SCBT properties were written down by $1.7 million. Many of these were to liquidation levels in anticipation of an auction scheduled for May 2014. The efficiency ratio for the quarter was 73.8%, down from 79.2% in the fourth quarter. Our operating efficiency ratio, which excludes merger and branding expenses and OREO related expenses, was 64.1% compared to 66.3% in the fourth quarter.

Compared to the first quarter of 2013, noninterest expense was $31.0 million higher than first quarter of 2014. This significant increase was primarily the result of the First Financial merger.

Balance Sheet and Capital

At March 31, 2014, the Company’s total assets were $8.0 billion, up from $5.1 billion at March 31, 2013, and from $7.9 billion at December 31, 2013. Since December 31, 2013, the Company has experienced asset growth in the following areas: cash and cash equivalents by $133.2 million, or 27.8%, non-acquired loans by $114.7 million, or 4.0%, and loans held for sale by $26.6 million, or 87.0%. Driving the increase in loans held for sale in the first quarter of 2014, the Company decided to market the credit card loan portfolio and reclassified $17.6 million of loans from acquired loans to loans held for sale. Partially offsetting these increases were decreases in acquired loans by $188.2 million and the FDIC receivable by $26.0 million.

The Company’s book value per common share decreased to $38.73 per share at March 31, 2014, compared to $40.72 at December 31, 2013. Capital decreased by $47.3 million due primarily to the $65.0 million redemption of preferred stock in March of 2014, which was partially offset by the first quarter net income available to common shareholders of $15.8 million. Tangible book value (“TBV”) per common share increased by $0.81 per share to $23.11 at March 31, 2014 from $22.30 at December 31, 2013 due primarily to the first quarter net income available to common shareholders of $15.8 million. In addition, tangible common equity to tangible assets increased to 7.32% at March 31, 2014 up from 7.12% at the end of the fourth quarter of 2013.

The total risk-based capital ratio is estimated to be around 13.6% down from the fourth quarter of 2013 of 14.4%. Tier 1 leverage ratio decreased to approximately 8.6% from 9.3% at December 31, 2013. The decline is driven by the $65.0 million preferred stock redemption offset by the net income. The Company’s capital position remains “well-capitalized” by all measures at March 31, 2014.

“Our balance sheet continues to strengthen with the redemption of the preferred stock which had a dividend rate of 9%, and with the outstanding balance of demand deposits now exceeding our time deposits,” said John C. Pollok, COO and CFO. “Our net interest margin improved over the fourth quarter of 2013 to 4.99%, as the acquired loan portfolio yield increased from 7.20% to 7.56% for the quarter. Our funding cost remains low at 30 basis points reflecting the continued decline in time deposits and 11.7% growth in low costing core deposits.”

First Financial Holdings, Inc. will hold a conference call on April 25th at 11 a.m. ET during which management will review earnings and performance trends. Callers wishing to participate may call toll-free by dialing 888-317-6016. The number for international participants is 412-317-6016. The conference ID number is 10043070. Participants can also listen to the live audio webcast through the Investor Relations section of www.SCBTonline.com. A replay will be available beginning April 25th by 2:00 p.m. ET until 9:00 a.m. on May 12th. To listen to the replay, dial 877-344-7529 or 412-317-0088. The pass code is 10043070.

First Financial Holdings, Inc., (NASDAQ:SCBT) Columbia, South Carolina is a registered bank holding company incorporated under the laws of South Carolina. The Company consists of SCBT, the Bank and the following divisions: NCBT, Community Bank & Trust, The Savannah Bank, and First Federal. The Bank also operates Minis & Co., Inc. and First Southeast 401k Fiduciaries, both wholly owned registered investment advisors; and First Southeast Investor Services, a wholly owned broker dealer. Providing financial services for over 80 years, First Financial Holdings, Inc. operates 136 locations in 19 South Carolina counties, 12 Georgia counties, and 4 North Carolina counties. First Financial Holdings, Inc. has assets of approximately $8.0 billion and its stock is traded under the symbol SCBT in the NASDAQ Global Select Market. More information can be found at www.SCBTonline.com.

Non-GAAP Measures

Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures. Management believes that these non-GAAP measures provide additional useful information. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.

Cautionary Statement Regarding Forward Looking Statements

Statements included in this report which are not historical in nature are intended to be, and are hereby identified as, forward looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934. Forward looking statements generally include words such as “expects,” “projects,” “anticipates,” “believes,” “intends,” “estimates,” “strategy,” “plan,” “potential,” “possible” and other similar expressions. The Company cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from anticipated results. Such risks and uncertainties, include, among others, the following possibilities: (1) the outcome of any legal proceedings instituted against the Company; (2) credit risks associated with an obligor’s failure to meet the terms of any contract with the bank or otherwise fail to perform as agreed under the terms of any loan-related document; (3) interest risk involving the effect of a change in interest rates on the bank’s earnings, the market value of the bank's loan and securities portfolios, and the market value of the Company's equity; (4) liquidity risk affecting the bank’s ability to meet its obligations when they come due; (5) risks associated with an anticipated increase in the Company's investment securities portfolio, including risks associated with acquiring and holding investment securities or potentially determining that the amount of investment securities the Company desires to acquire are not available on terms acceptable to the Company; (6) price risk focusing on changes in market factors that may affect the value of traded instruments in “mark-to-market” portfolios; (7) transaction risk arising from problems with service or product delivery; (8) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (9) regulatory change risk resulting from new laws, rules, regulations, accounting principles, proscribed practices or ethical standards, including, without limitation, increased capital requirements (including, without limitation, the impact of the capital rules adopted to implement Basel III), Consumer Financial Protection Bureau rules and regulations, and potential changes in accounting principles relating to loan loss recognition; (10) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (11) reputation risk that adversely affects earnings or capital arising from negative public opinion; (12) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (13) cybersecurity risk related to our dependence on internal computer systems and the technology of outside service providers, as well as the potential impacts of third-party security breaches, subjects the company to potential business disruptions or financial losses resulting from deliberate attacks or unintentional events; (14) economic downturn risk potentially resulting in deterioration in the credit markets, greater than expected non-interest expenses, excessive loan losses and other negative consequences, which risks could be exacerbated by potential negative economic developments resulting from federal spending cuts and/or one or more federal budget-related impasses or actions; (15) greater than expected noninterest expenses; (16) excessive loan losses; (17) failure to realize synergies and other financial benefits from, and to limit liabilities associates with, mergers and acquisitions, including, without limitation, merger with First Financial Holdings, Inc. ("FFCH"), within the expected time frame; (18) potential deposit attrition, higher than expected costs, customer loss and business disruption associated with merger and acquisition integration, including, without limitation, with respect to FFCH, and including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters; (19) the risks of fluctuations in market prices for Company common stock that may or may not reflect economic condition or performance of the Company; (20) the payment of dividends on Company common stock is subject to regulatory supervision as well as the discretion of the board of directors of the Company, the Company's performance and other factors; and (21) other risks and uncertainties disclosed in the Company's most recent Annual Report on Form 10-K filed with the SEC or disclosed in documents filed or furnished by the Company with or to the SEC after the filing of such Annual report on Form 10-K, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward looking statements. The Company undertakes no obligation to update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
         
First
Three Months Ended Quarter
March 31, December 31, September 30, June 30, March 31, 2014 - 2013
EARNINGS SUMMARY (non tax equivalent) 2014 2013 2013 2013 2013 % Change
Interest income $ 87,338 $ 88,748 $ 83,808 $ 57,530 $ 56,169 55.5 %
Interest expense   3,996     4,359     4,029     2,246     2,368   68.8 %
Net interest income 83,342 84,389 79,779 55,284 53,801 54.9 %
Provision for loan losses (1) 849 (12 ) 659 179 1,060 -19.9 %
Noninterest income 20,679 20,683 15,157 8,485 9,523 117.1 %
Noninterest expense   77,423     83,896     75,419     44,885     46,441   66.7 %
Income before provision for income taxes 25,749 21,188 18,858 18,705 15,823 62.7 %
Provision for income taxes   8,832     7,204     6,804     6,173     5,174   70.7 %
Net income 16,917 13,984 12,054 12,532 10,649 58.9 %
Preferred stock dividends   1,073     812     542     --     --  
Net income available to common shareholders (GAAP) $ 15,844   $ 13,172   $ 11,512   $ 12,532   $ 10,649   48.8 %
 
Effective tax rate 34.30 % 34.00 % 36.08 % 33.00 % 32.70 %
 
Basic weighted-average common shares 23,873,178 23,825,636 21,893,528 16,790,167 16,787,487 42.2 %
Diluted weighted-average common shares 24,116,174 24,079,350 22,127,979 16,989,818 16,954,039 42.2 %
 
Earnings per common share - Basic $ 0.66 $ 0.55 $ 0.53 $ 0.75 $ 0.63 4.8 %
Earnings per common share - Diluted 0.66 0.55 0.52 0.74 0.63 4.8 %
 
Cash dividends declared per common share $ 0.19 $ 0.19 $ 0.19 $ 0.18 $ 0.18 5.6 %
Dividend payout ratio (2) 28.91 % 34.74 % 39.71 % 24.46 % 28.75 % 0.6 %
 
Operating Earnings (non-GAAP) (3)
Net income (GAAP) $ 16,917 $ 13,984 $ 12,054 $ 12,532 $ 10,649 58.9 %
Securities (gains) losses, net of tax -- -- -- -- --
Merger and branding related expense, net of tax   3,932     6,147     7,326     576     1,321   197.6 %
Net operating earnings (loss) (non-GAAP) 20,849 20,131 19,380 13,108 11,970 74.2 %
Preferred stock dividends   1,073     812     542     --     --  
Net operating earnings (loss) available to common shareholders (non-GAAP) $ 19,776   $ 19,319   $ 18,838   $ 13,108   $ 11,970   65.2 %
 
Operating earnings (loss) per common share - Basic $ 0.83 $ 0.81 $ 0.86 $ 0.78 $ 0.71 16.9 %
Operating earnings (loss) per common share - Diluted 0.82 0.80 0.85 0.77 0.71 15.5 %
 
First
AVERAGE for Quarter Ended         Quarter
March 31, December 31, September 30, June 30, March 31, 2014 - 2013
BALANCE SHEET HIGHLIGHTS 2014 2013 2013 2013 2013 % Change
Loans held for sale $ 29,386 $ 35,673 $ 53,204 $ 40,040 $ 51,216 -42.6 %
Acquired non-credit impaired loans 1,575,392 1,635,418 1,227,822 72,998 73,160 2053.4 %
Acquired credit impaired loans, net of allowance for acquired loan losses 1,162,467 1,247,891 1,199,761 854,522 923,850 25.8 %
Non-acquired loans 2,909,175 2,793,522 2,698,580 2,629,897 2,576,545 12.9 %
Total loans (1) 5,647,034 5,676,831 5,126,163 3,557,417 3,573,555 58.0 %
FDIC receivable for loss share agreements 83,010 105,554 116,849 114,724 139,172 -40.4 %
Total investment securities 801,263 699,592 656,658 527,926 553,214 44.8 %
Intangible assets 377,265 379,894 308,730 123,881 125,257 201.2 %
Earning assets 6,842,708 6,880,973 6,254,128 4,496,341 4,489,187 52.4 %
Total assets 7,959,787 7,977,604 7,214,418 5,069,993 5,117,003 55.6 %
Noninterest-bearing deposits 1,485,014 1,510,734 1,359,137 1,023,668 969,401 53.2 %
Interest-bearing deposits 5,033,181 5,098,095 4,626,023 3,150,909 3,236,609 55.5 %
Total deposits 6,518,195 6,608,829 5,985,160 4,174,577 4,206,010 55.0 %
Federal funds purchased and repurchase agreements 273,636 229,382 251,551 297,025 319,602 -14.4 %
Other borrowings 102,269 101,948 93,849 54,461 54,713 86.9 %
Shareholders' common equity (excludes preferred stock) 931,961 914,335 790,554 517,141 511,392 82.2 %
Shareholders' equity 994,073 979,335 837,185 517,141 511,392 94.4 %
First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands)
          First
ENDING Balance Quarter
March 31, December 31, September 30, June 30, March 31, 2014 - 2013
BALANCE SHEET HIGHLIGHTS 2014 2013 2013 2013 2013 % Change
Loans held for sale $ 57,200 $ 30,586 $ 52,467 $ 47,980 $ 50,449 13.4 %
Acquired non-credit impaired loans 1,512,201 1,598,051 1,665,333 69,653 70,234 2053.1 %
Acquired credit impaired loans 1,124,809 1,227,698 1,328,889 835,051 909,349 23.7 %
Non-acquired loans 2,979,958 2,865,216 2,741,242 2,665,595 2,604,298 14.4 %
Total loans (1) 5,616,968 5,690,965 5,735,464 3,570,299 3,583,881 56.7 %
FDIC receivable for loss share agreements 67,984 93,947 115,773 104,048 124,340 -45.3 %
Total investment securities 814,533 812,603 652,610 531,579 533,255 52.7 %
Intangible assets 376,676 379,015 381,302 126,451 127,473 195.5 %
Allowance for acquired credit impaired loan losses (11,046 ) (11,618 ) (12,260 ) (14,461 ) (15,605 ) -29.2 %
Allowance for non-acquired loan losses (1) (34,669 ) (34,331 ) (36,145 ) (38,625 ) (41,669 ) -16.8 %
Premises and equipment 187,127 188,114 184,959 109,794 110,792 68.9 %
Total assets 7,990,975 7,931,498 8,028,441 5,043,078 5,141,929 55.4 %
Noninterest-bearing deposits 1,581,157 1,487,798 1,481,791 1,046,537 995,214 58.9 %
Interest-bearing deposits 5,049,496 5,067,699 5,181,315 3,136,432 3,224,142 56.6 %
Total deposits 6,630,653 6,555,497 6,663,106 4,182,969 4,219,356 57.1 %
Federal funds purchased and repurchase agreements 254,985 211,401 233,792 262,447 328,701 -22.4 %
Other borrowings 100,963 102,060 101,347 54,372 54,638 84.8 %
Total liabilities 7,056,812 6,950,029 7,058,415 4,526,486 4,627,718 52.5 %
Shareholders' common equity (excludes preferred stock) 934,163 916,469 905,026 516,592 514,211 81.7 %
Shareholders' equity 934,163 981,469 970,026 516,592 514,211 81.7 %
 
Common shares issued and outstanding 24,118,243 24,104,124 24,066,545 17,032,061 17,017,904 41.7 %
 
First
ENDING Balance Quarter
March 31, December 31, September 30, June 30, March 31, 2014 - 2013
NONPERFORMING ASSETS (ENDING BALANCE) (7) 2014 2013 2013 2013 2013 % Change
Non-acquired
Non-acquired nonaccrual loans $ 29,190 $ 31,333 $ 38,631 $ 40,854 $ 42,945 -32.0 %
Restructured loans 8,156 10,690 10,837 11,689 13,636 -40.2 %
Non-acquired other real estate owned ("OREO") 12,187 13,456 16,555 15,950 19,680 -38.1 %
Accruing loans past due 90 days or more 96 258 122 198 121 -20.7 %
Other nonperforming assets   --     --     --     --     --  
Total non-acquired nonperforming assets   49,629     55,737     66,145     68,691     76,382   -35.0 %
Acquired non-credit impaired loans
Acquired nonaccrual loans -- -- -- -- --
Acquired accruing loans past due 90 days or more   --     --     --     --     --  
Total acquired non-credit impaired loans   --     --     --     --     --  
Acquired credit impaired loans (7)
Acquired nonaccrual loans   --     --     --     --     --  
Total acquired credit impaired loans   --     --     --     --     --  
Acquired OREO and other nonperforming assets
OREO covered under FDIC loss share agreements 29,003 27,520 40,543 35,142 34,244 -15.3 %
OREO not covered under FDIC loss share agreements 22,957 23,941 18,775 17,536 16,766 36.9 %
Other nonperforming assets   1,032     943     718     --     26  
Total acquired OREO and other nonperforming assets   52,992     52,404     60,036     52,678     51,036   3.8 %
Total acquired nonperforming assets   52,992     52,404     60,036     52,678     51,036   3.8 %
Total nonperforming assets $ 102,621   $ 108,141   $ 126,181   $ 121,369   $ 127,418   -19.5 %
 
Excluding Acquired Assets
NPLs as a percentage of period end non-acquired loans   1.26 %   1.48 %   1.81 %   1.98 %   2.18 %
Total nonperforming assets as a percentage of
total non-acquired loans and repossessed assets (1) (4)   1.66 %   1.94 %   2.40 %   2.56 %   2.91 %
Total nonperforming assets as a percentage
of total assets (5)   0.62 %   0.70 %   0.82 %   1.36 %   1.49 %
Including Acquired Assets
NPLs as a percentage of period end loans   0.67 %   0.74 %   0.86 %   1.47 %   1.58 %
Total nonperforming assets as a percentage of
total loans and repossessed assets (1) (4)   1.81 %   1.88 %   2.16 %   3.32 %   3.47 %
Total nonperforming assets as a percentage
of total assets   1.28 %   1.36 %   1.57 %   2.41 %   2.48 %
First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands)
            First
Quarter Ended             Quarter
March 31, December 31, September 30, June 30, March 31, 2014 - 2013
ALLOWANCE FOR LOAN LOSSES (1) 2014 2013 2013 2013 2013 % Change
Non-acquired Loans:
Balance at beginning of period $ 34,331 $ 36,145 $ 38,625 $ 41,669 $ 44,378 -22.6 %
Loans charged off (901 ) (2,778 ) (3,815 ) (2,827 ) (4,148 ) -78.3 %
Overdrafts charged off (469 ) (389 ) (479 ) (393 ) (459 ) 2.2 %
Loan recoveries 817 1,215 1,095 436 826 -1.1 %
Overdraft recoveries   221     138     154     140     219   0.9 %
Net charge-offs (332 ) (1,814 ) (3,045 ) (2,644 ) (3,562 ) -90.7 %
Provision for loan losses on non-acquired loans   670     --     565     (400 )   853   -21.5 %
Balance at end of period, non-acquired loans $ 34,669   $ 34,331   $ 36,145   $ 38,625   $ 41,669   -16.8 %
 
Allowance for non-acquired loan losses as a
percentage of non-acquired loans (1)   1.16 %   1.20 %   1.32 %   1.45 %   1.60 %
Allowance for non-acquired loan losses as a
percentage of non-acquired nonperforming loans   92.59 %   81.20 %   72.89 %   73.23 %   73.49 %
Net charge-offs on non-acquired loans as a percentage of
average non-acquired loans (annualized) (1)   0.05 %   0.26 %   0.45 %   0.40 %   0.56 %
 
DAY 2 VALUATION ALLOWANCE ON ACQUIRED LOANS
Balance at beginning of period $ 11,618 $ 12,260 $ 14,461 $ 15,605 $ 17,218
Provision for loan losses on acquired loans:
Provision for loan losses before benefit attributable
to FDIC loss share agreements

304

73 (456 ) 320 (855 )
Benefit attributable to FDIC loss share agreements  

(125

)

  (85 )   550     259     1,062  
Net provision for loan losses on acquired loans   179     (12 )   94     579     207  
Provision for loan losses recorded through the FDIC
loss share receivable

125

 

85 (550 ) (259 ) (1,062 )
Reduction due to loan removals (12)  

(876

)   (715 )   (1,745 )   (1,464 )   (758 )
Balance at end of period, acquired credit impaired loans $ 11,046   $ 11,618   $ 12,260   $ 14,461   $ 15,605  
First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
          First
ENDING Balance             Quarter
March 31, December 31, September 30, June 30, March 31, 2014 - 2013
LOAN PORTFOLIO (ENDING balance) (1) 2014 2013 2013 2013 2013 % Change
Acquired loans:
Acquired covered loans:
Commercial non-owner occupied real estate:
Construction and land development $ 37,757 $ 43,396 $ 50,582 $ 31,647 $ 36,941 2.2 %
Commercial non-owner occupied   50,814   53,525   62,985   42,945   47,594 6.8 %
Total commercial non-owner occupied real estate 88,571 96,921 113,567 74,592 84,535 4.8 %
Consumer real estate:
Consumer owner occupied 37,111 38,946 41,379 39,005 41,879 -11.4 %
Home equity loans   34,627   35,884   37,943   20,857   21,370 62.0 %
Total consumer real estate 71,738 74,830 79,322 59,862 63,249 13.4 %
Commercial owner occupied real estate 78,861 88,722 93,309 41,401 43,395 81.7 %
Commercial and industrial 11,964 14,475 16,596 9,454 10,742 11.4 %
Other income producing property 29,471 31,739 37,543 34,941 37,366 -21.1 %
Consumer non real estate   1,772   1,878   2,322   1,696   2,107 -15.9 %
Total acquired covered loans 282,377 308,565 342,659 221,946 241,394 17.0 %
Acquired non-covered loans:
Commercial non-owner occupied real estate:
Construction and land development 96,981 129,289 134,342 72,453 82,885 17.0 %
Commercial non-owner occupied   204,094   226,530   245,046   158,100   169,504 20.4 %
Total commercial non-owner occupied real estate 301,075 355,819 379,388 230,553 252,389 19.3 %
Consumer real estate:
Consumer owner occupied 951,131 974,392 1,013,022 90,258 98,117 869.4 %
Home equity loans   324,686   335,241   349,517   70,903   75,039 332.7 %
Total consumer real estate 1,275,817 1,309,633 1,362,539 161,161 173,156 636.8 %
Commercial owner occupied real estate 200,370 211,030 230,849 124,312 132,851 50.8 %
Commercial and industrial 76,016 98,046 111,135 61,237 64,913 17.1 %
Other income producing property 160,498 171,544 183,996 97,747 106,019 51.4 %
Consumer non real estate   340,857   371,112   383,656   7,748   8,861 3746.7 %
Total acquired non-covered loans   2,354,633   2,517,184   2,651,563   682,758   738,189 219.0 %
Total acquired loans 2,637,010 2,825,749 2,994,222 904,704 979,583 169.2 %
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development 319,441 299,951 288,199 285,370 273,488 16.8 %
Commercial non-owner occupied   285,145   291,170   282,678   298,769   298,707 -4.5 %
Total commercial non-owner occupied real estate 604,586 591,121 570,877 584,139 572,195 5.7 %
Consumer real estate:
Consumer owner occupied 595,652 548,170 498,734 460,434 443,134 34.4 %
Home equity loans   263,057   257,139   255,291   250,988   249,356 5.5 %
Total consumer real estate 858,709 805,309 754,025 711,422 692,490 24.0 %
Commercial owner occupied real estate 845,728 833,513 814,259 802,125 796,139 6.2 %
Commercial and industrial 333,574 321,824 301,845 294,580 291,308 14.5 %
Other income producing property 158,186 143,204 140,024 136,957 131,776 20.0 %
Consumer non real estate 147,710 136,410 116,312 104,239 93,997 57.1 %
Other   31,465   33,835   43,900   32,133   26,393 19.2 %
Total non-acquired loans   2,979,958   2,865,216   2,741,242   2,665,595   2,604,298 14.4 %
Total loans (net of unearned income) (1) $ 5,616,968 $ 5,690,965 $ 5,735,464 $ 3,570,299 $ 3,583,881 56.7 %
 
Loans held for sale $ 57,200 $ 30,586 $ 52,467 $ 47,980 $ 50,449 13.4 %
First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
       
Quarter Ended
March 31, December 31, September 30, June 30, March 31,
SELECTED RATIOS 2014 2013 2013 2013 2013
 
Return on average assets (annualized) 0.86% 0.70% 0.66% 0.99% 0.84%
 
Operating return on average assets (annualized) (non-GAAP) (3) 1.06% 1.00% 1.07% 1.04% 0.95%
 
Return on average common equity (annualized) 6.89% 5.72% 5.78% 9.72% 8.45%
 
Return on average equity (annualized) 6.90% 5.67% 5.71% 9.72% 8.45%
 
Operating return on average common equity (annualized) (non-GAAP) (3) 8.61% 8.38% 9.45% 10.17% 9.49%
 
Operating return on average equity (annualized) (non-GAAP) (3) 8.51% 8.16% 9.18% 10.17% 9.49%
 
Return on average common tangible equity (annualized) (non-GAAP) (10) 12.59% 10.90% 10.39% 13.48% 11.92%
 
Operating return on average tangible common equity (annualized) (non-GAAP) (10) 15.47% 15.46% 16.43% 14.07% 13.30%
 
Return on average tangible equity (annualized) (non-GAAP) (10) 12.03% 10.25% 9.88% 13.48% 11.92%
 
Net interest margin (tax equivalent) 4.99% 4.91% 5.11% 5.01% 4.94%
 
Efficiency ratio (tax equivalent) 73.84% 79.22% 78.74% 69.49% 72.37%
 
Operating efficiency ratio excluding OREO expense 64.06% 66.30% 64.27% 63.79% 64.47%
 
Book value per common share $ 38.73 $ 40.72 $ 40.31 $ 30.33 $ 30.22
 
Tangible common equity per common share (non-GAAP) (10) $ 23.11 $ 22.30 $ 21.76 $ 22.91 $ 22.73
 
Common shares issued and outstanding 24,118,243 24,104,124 24,066,545 17,032,061 17,017,904
 
Common equity-to-assets 11.69% 11.55% 11.27% 10.24% 10.00%
 
Equity-to-assets 11.69% 12.37% 12.08% 10.24% 10.00%
 
Tangible common equity-to-tangible assets (non-GAAP) (10) 7.32% 7.12% 6.85% 7.94% 7.71%
 
Tangible equity-to-tangible assets (non-GAAP) (10) 7.32% 7.98% 7.70% 7.94% 7.71%
 
Tier 1 leverage (9) 8.6% 9.3% 10.0% 9.2% 8.8%
 
Tier 1 risk-based capital (9) 12.7% 13.5% 13.1% 13.6% 13.2%
 
Total risk-based capital (9) 13.6% 14.4% 14.4% 14.8% 14.4%
First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
       
Quarter Ended
March 31, December 31, September 30, June 30, March 31,
RECONCILIATION OF NON-GAAP TO GAAP 2014 2013 2013 2013 2013
 
Pre-tax, Pre-provision Operating Earnings (6)
Net income (GAAP) $ 16,917 $ 13,984 $ 12,054 $ 12,532 $ 10,649
Provision for loan losses (1) 849 (12 ) 659 179 1,060
Provision for income taxes   8,832     7,204     6,804     6,173     5,174  
Pre-tax, pre-provision income 26,598 21,176 19,517 18,884 16,883
Securities gains -- -- -- -- --
Merger and branding related expense   5,985     9,314     10,397     860     1,963  
Pre-tax, pre-provision operating earnings (non-GAAP) $ 32,583   $ 30,490   $ 29,914   $ 19,744   $ 18,846  
 
Operating Return of Average Assets (3)
Operating return on average assets (non-GAAP) 1.06 % 1.00 % 1.07 % 1.04 % 0.95 %
Effect to adjust for securities gains (losses) 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Effect to adjust for merger and branding related expenses   -0.20 %   -0.30 %   -0.41 %   -0.05 %   -0.11 %
Return on average assets (GAAP)   0.86 %   0.70 %   0.66 %   0.99 %   0.84 %
 
Operating Return of Average Common Equity (3)
Operating return on average equity (non-GAAP) 8.61 % 8.38 % 9.45 % 10.17 % 9.49 %
Effect to adjust for securities gains (losses) 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Effect to adjust for merger and branding related expenses   -1.72 %   -2.66 %   -3.67 %   -0.45 %   -1.04 %
Return on average common equity (GAAP)   6.89 %   5.72 %   5.78 %   9.72 %   8.45 %
 
Operating Return of Average Equity (3)
Operating return on average equity (non-GAAP) 8.51 % 8.16 % 9.18 % 10.17 % 9.49 %
Effect to adjust for securities gains (losses) 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Effect to adjust for merger and branding related expenses   -1.61 %   -2.49 %   -3.47 %   -0.45 %   -1.04 %
Return on average equity (GAAP)   6.90 %   5.67 %   5.71 %   9.72 %   8.45 %
 
Return on Average Common Tangible Equity
Return on average common tangible equity (non-GAAP) 12.59 % 10.90 % 10.39 % 13.48 % 11.92 %
Effect to adjust for tangible assets   -5.70 %   -5.18 %   -4.61 %   -3.76 %   -3.47 %
Return on average common equity (GAAP)   6.89 %   5.72 %   5.78 %   9.72 %   8.45 %
 
Operating Return on Average Common Tangible Equity
Operating return on average common tangible equity (non-GAAP) 15.47 % 15.46 % 16.43 % 14.07 % 13.30 %
Effect to adjust for securities gains (losses) 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Effect to adjust for merger and branding related expenses -1.71 % -2.67 % -3.68 % -0.45 % -1.05 %
Effect to adjust for tangible assets   -6.87 %   -7.07 %   -6.97 %   -3.90 %   -3.80 %
Return on average common equity (GAAP)   6.89 %   5.72 %   5.78 %   9.72 %   8.45 %
 
Return on Average Tangible Equity (10)
Return on average tangible equity (non-GAAP) 12.03 % 10.25 % 9.88 % 13.48 % 11.92 %
Effect to adjust for intangible assets   -5.13 %   -4.58 %   -4.17 %   -3.76 %   -3.47 %
Return on average equity (GAAP)   6.90 %   5.67 %   5.71 %   9.72 %   8.45 %
 
Operating efficiency ratio excluding OREO expense
Operating efficiency ratio excluding OREO expense 64.06 % 66.30 % 64.27 % 63.79 % 64.47 %
Effect to adjust for OREO and loan related expense 4.18 % 4.14 % 3.68 % 4.37 % 4.84 %
Effect to adjust for merger and branding expenses   5.71 %   8.75 %   11.05 %   1.33 %   3.06 %
Efficiency ratio (Tax Equivalent)   73.84 %   79.22 %   78.74 %   69.49 %   72.37 %
 
Tangible Book Value Per Common Share (10)
Tangible book value per common share (non-GAAP) $ 23.11 $ 22.30 $ 21.76 $ 22.91 $ 22.73
Effect to adjust for intangible assets   15.62     18.42     18.54     7.42     7.49  
Book value per common share (GAAP) $ 38.73   $ 40.72   $ 40.31   $ 30.33   $ 30.22  
 
Tangible Common Equity-to-Tangible Assets
Tangible common equity-to-tangible assets (non-GAAP) 7.32 % 7.12 % 6.85 % 7.94 % 7.71 %
Effect to adjust for tangible assets   4.37 %   4.43 %   4.42 %   2.30 %   2.29 %
Common equity-to-assets (GAAP)   11.69 %   11.55 %   11.27 %   10.24 %   10.00 %
 
Tangible Equity-to-Tangible Assets (10)
Tangible equity-to-tangible assets (non-GAAP) 7.32 % 7.98 % 7.70 % 7.94 % 7.71 %
Effect to adjust for intangible assets   4.37 %   4.39 %   4.38 %   2.30 %   2.29 %
Equity-to-assets (GAAP)   11.69 %   12.37 %   12.08 %   10.24 %   10.00 %
First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands)
         
Three Months Ended
March 31, 2014 March 31, 2013
Average Interest Average Average Interest Average
YIELD ANALYSIS Balance Earned/Paid Yield/Rate Balance Earned/Paid Yield/Rate
 
Interest-Earning Assets:
Federal funds sold, reverse repo, and time deposits $ 365,026 $ 460 0.51 % 311,202 $ 418 0.54 %
Investment securities (taxable) 652,118 3,881 2.41 % 394,917 2,161 2.22 %
Investment securities (tax-exempt) 149,145 1,156 3.14 % 158,297 1,206 3.09 %
Loans held for sale 29,386 320 4.42 % 51,216 382 3.02 %
Acquired loans, net of allowance for acquired loan losses 2,737,859 51,051 7.56 % 997,010 23,370 9.51 %
Non-acquired loans (1)   2,909,175     30,470 4.25 %   2,576,545     28,632 4.51 %
Total interest-earning assets 6,842,709 87,338 5.18 % 4,489,187 56,169 5.07 %
 
Noninterest-Earning Assets:
Cash and due from banks 204,657 120,005
Other assets 947,613 552,147
Allowance for non-acquired loan losses   (35,192 )   (44,336 )
Total noninterest-earning assets   1,117,078     627,816  
Total Assets $ 7,959,787   $ 5,117,003  
 
Interest-Bearing Liabilities:
Transaction and money market accounts $ 2,882,169 $ 814 0.11 % $ 1,855,556 $ 605 0.13 %
Savings deposits 656,274 119 0.07 % 349,968 81 0.09 %
Certificates and other time deposits 1,494,698 1,460 0.40 % 1,034,242 873 0.34 %
Federal funds purchased and repurchase agreements 273,636 101 0.15 % 319,602 136 0.17 %
Other borrowings   102,269     1,502 5.96 %   54,713     673 4.99 %
Total interest-bearing liabilities 5,409,046 3,996 0.30 % 3,614,081 2,368 0.27 %
 
Noninterest-Bearing Liabilities:
Demand deposits 1,485,014 967,710
Other liabilities   71,654     23,820  
Total noninterest-bearing liabilities ("Non-IBL") 1,556,668 991,530
Shareholders' equity   994,073     511,392  
Total Non-IBL and shareholders' equity   2,550,741     1,502,922  
Total liabilities and shareholders' equity $ 7,959,787   $ 5,117,003  
   
Net interest income and margin (NON-TAX EQUIV.) $ 83,342 4.94 % $ 53,801 4.86 %
Net interest margin (TAX EQUIVALENT) 4.99 % 4.94 %
First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands)
          First
Three Months Ended Quarter
March 31, December 31, September 30, June 30, March 31, 2014 - 2013
NONINTEREST INCOME & EXPENSE 2014 2013 2013 2013 2013 % Change
Noninterest income:
Service charges on deposit accounts $ 8,988 $ 10,098 $ 8,966 $ 5,736 $ 5,761 56.0 %
Bankcard services income 7,124 7,252 6,493 4,245 3,893 83.0 %
Mortgage banking income 3,291 2,489 1,342 1,922 3,355 -1.9 %
Trust and investment services income 4,543 4,316 3,593 2,438 2,314 96.3 %
Amortization of FDIC indemnification asset (7,078 ) (7,429 ) (7,625 ) (7,310 ) (7,171 ) 1.3 %
Other   3,811     3,957     2,388     1,454     1,371   178.0 %
Total noninterest income $ 20,679   $ 20,683   $ 15,157   $ 8,485   $ 9,523   117.1 %
 
Noninterest expense:
Salaries and employee benefits $ 39,093 $ 40,634 $ 34,464 $ 23,746 $ 23,252 68.1 %
Information services expense 4,222 4,323 3,827 2,992 3,192 32.3 %
OREO expense and loan related 4,269 4,375 3,461 2,820 3,102 37.6 %
Net occupancy expense 5,590 5,855 5,046 3,272 3,345 67.1 %
Furniture and equipment expense 3,754 3,824 3,523 2,266 2,572 46.0 %
Merger and branding related expense 5,985 9,314 10,397 860 1,963 204.9 %
Business development and staff related 1,496 1,702 1,186 1,276 1,228 21.8 %
FDIC assessment and other regulatory charges 1,576 1,193 1,521 1,096 1,224 28.8 %
Bankcard expense 2,299 2,283 1,752 1,236 1,164 97.5 %
Amortization of intangibles 2,104 2,287 1,738 1,022 1,034 103.5 %
Professional fees 1,341 1,509 1,377 760 691 94.1 %
Advertising and marketing 1,134 1,301 1,150 648 842 34.7 %
Other   4,560     5,296     5,977     2,891     2,832   61.0 %
Total noninterest expense $ 77,423   $ 83,896   $ 75,419   $ 44,885   $ 46,441   66.7 %
 
 
 
Notes:
(1) Loan data excludes mortgage loans held for sale.
(2) The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period.
(3) Operating earnings, operating return on average assets, and operating return on average equity are non-GAAP measures and exclude the after-tax effect of gains on acquisitions, gains or losses on sales of securities, OTTI, and merger and branding related expense. Management believes that non-GAAP operating measures provide additional useful information that allows readers to evaluate the ongoing performance of the company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP. Operating earnings and the related operating return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger and branding related expense of $5,985,000, $9,314,000, $10,397,000, $860,000, and $1,963,000, for the quarters ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013, and March 31, 2013, respectively.
(4) Repossessed assets includes OREO and other nonperforming assets.
(5) Calculated by dividing total non-acquired NPAs by total assets.
(6) Pre-tax, pre-provision operating earnings is a non-GAAP measure and excludes the effect of the provision for loan losses, the provision for income taxes, the gains on acquisitions, gains or losses on sales of securities, OTTI, and merger and branding related expense. Management believes that non-GAAP pre-tax, pre-provision operating earnings provides additional useful information that allows readers to evaluate the ongoing performance of the company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.
(7) Acquired credit impaired loans are not included in non-performing assets because the accretion method is being used for these acquired loan pools.
(8) If an other-than-temporary impairment charge was recorded during the quarter, the amount would be reflected in the "securities gains (losses), net" line item.
(9) March 31, 2014 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed. All ratios are rounded down to one decimal point.
(10) The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of Non-GAAP to GAAP" provide tables that reconcile non-GAAP measures to GAAP.
(11) Classified asset data excludes acquired assets.
(12) The allowance for acquired loan losses is reduced for any loan removals, which occur when a loan has been fully paid off, fully charged off, sold or transferred to OREO.
FIRST FINANCIAL HOLDINGS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except par value)
   
March 31, December 31, March 31,
2014 2013 2013
ASSETS (Unaudited) (Unaudited)
Cash and cash equivalents:
Cash and due from banks $ 361,816 $ 184,611 $ 227,326
Interest-bearing deposits with banks 4,690 32,632 5,743
Federal funds sold and securities
purchased under agreements to resell   246,109     262,218     262,800  
Total cash and cash equivalents   612,615     479,461     495,869  
Investment securities:
Securities held to maturity
(fair value of $11,427, $12,891, and $15,555, respectively) 10,891 12,426 14,598
Securities available for sale, at fair value 793,124 786,791 510,852
Other investments   10,518     13,386     7,805  
Total investment securities   814,533     812,603     533,255  
Loans held for sale   57,200     30,586     50,449  
Loans:
Acquired credit impaired (covered of $263,735, $289,122, and $225,789, respectively; non-covered of
$850,028, $926,958 and $667,955, respectively), net of allowance for loan losses 1,113,763 1,216,080 893,744
Acquired non-credit impaired (covered of $8,246, $7,824, and $0, respectively;
non-covered of $1,503,955, $1,590,227 and $70,234, respectively) 1,512,201 1,598,051 70,234
Non-acquired 2,979,958 2,865,216 2,604,298
Less allowance for non-acquired loan losses   (34,669 )   (34,331 )   (41,669 )
Loans, net   5,571,253     5,645,016     3,526,607  
Goodwill 319,107 319,107 103,292
Premises and equipment, net 187,127 188,114 110,792
Bank owned life insurance 97,314 97,197 43,008
FDIC receivable for loss share agreements 67,984 93,947 124,340
Deferred tax asset 70,923 76,690 31,348
Other real estate owned (covered of $29,003, $27,520, and $34,244, respectively;
non-covered of $35,144, $37,398, and $36,446, respectively) 64,147 64,918 70,690
Core deposit and other intangibles 57,568 59,908 24,180
Mortgage servicing rights 20,925 20,729 --
Other assets   50,279     43,222     28,099  
Total assets $ 7,990,975   $ 7,931,498   $ 5,141,929  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 1,581,157 $ 1,487,798 $ 995,214
Interest-bearing   5,049,496     5,067,699     3,224,142  
Total deposits 6,630,653 6,555,497 4,219,356
Federal funds purchased and securities
sold under agreements to repurchase 254,985 211,401 328,701
Other borrowings 100,963 102,060 54,638
Other liabilities   70,211     81,071     25,023  
Total liabilities   7,056,812     6,950,029     4,627,718  
 
Shareholders' equity:
Preferred stock - $.01 par value; authorized 10,000,000 shares;
0, 65,000, and 0 shares issued and outstanding, respectively -- 1 --
Common stock - $2.50 par value; authorized 40,000,000 shares; 24,118,243,
24,104,124, and 17,017,904 shares issued and outstanding, respectively 60,296 60,260 42,545
Surplus 698,079 762,354 329,636
Retained earnings 179,842 168,577 143,573

 

Accumulated other comprehensive (loss)   (4,054 )   (9,723 )   (1,543 )
Total shareholders' equity   934,163     981,469     514,211  

 

Total liabilities and shareholders' equity $ 7,990,975   $ 7,931,498   $ 5,141,929  
FIRST FINANCIAL HOLDINGS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
   
Three Months Ended
March 31,
2014 2013
Interest income:
Loans, including fees $ 81,841 $ 52,384
Investment securities:
Taxable 3,881 2,161
Tax-exempt 1,156 1,206
Federal funds sold and securities
purchased under agreements to resell   460     418  
Total interest income   87,338     56,169  
Interest expense:
Deposits 2,393 1,559
Federal funds purchased and securities
sold under agreements to repurchase 101 136
Other borrowings   1,502     673  
Total interest expense   3,996     2,368  
Net interest income 83,342 53,801
Provision for loan losses   849     1,060  
Net interest income after provision for loan losses   82,493     52,741  
Noninterest income:
Service charges on deposit accounts 8,988 5,761
Bankcard services income 7,124 3,893
Mortgage banking income 3,291 3,355
Trust and investment services income 4,543 2,314
Securities gains (losses), net -- --
Amortization of FDIC indemnification asset (7,078 ) (7,171 )
Other   3,811     1,371  
Total noninterest income   20,679     9,523  
Noninterest expense:
Salaries and employee benefits 39,093 23,252
Information services expense 4,222 3,192
OREO expense and loan related 4,269 3,102
Net occupancy expense 5,590 3,345
Furniture and equipment expense 3,754 2,572
Merger and branding related expense 5,985 1,963
FDIC assessment and other regulatory charges 1,576 1,224
Bankcard expense 2,299 1,164
Amortization of intangibles 2,104 1,034
Professional fees 1,341 691
Advertising and marketing 1,134 842
Other   6,056     4,060  
Total noninterest expense   77,423     46,441  
Earnings:
Income before provision for income taxes 25,749 15,823
Provision for income taxes   8,832     5,174  
Net income 16,917 10,649
Preferred stock dividends 1,073 --
Accretion on preferred stock discount   --     --  
Net income available to common shareholders $ 15,844   $ 10,649  
Earnings per common share:
Basic $ 0.66   $ 0.63  
Diluted $ 0.66   $ 0.63  
 
Dividends per common share $ 0.19   $ 0.18  
 
Weighted-average common shares outstanding:
Basic 23,873 16,787
Diluted 24,116 16,954

Contacts

First Financial Holdings, Inc.
Media Contact: Donna Pullen, 803-765-4558
Analyst Contact: John C. Pollok, 803-765-4628

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Contacts

First Financial Holdings, Inc.
Media Contact: Donna Pullen, 803-765-4558
Analyst Contact: John C. Pollok, 803-765-4628