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First Financial Holdings, Inc. Announces First Quarter Earnings and Declares Cash Dividend



First Financial Holdings, Inc. Announces First Quarter Earnings and Declares
Cash Dividend

CHARLESTON, S.C., April 25, 2013 (GLOBE NEWSWIRE) -- First Financial Holdings,
Inc. ("First Financial") (Nasdaq:FFCH), the holding company for First Federal
Bank ("First Federal"), announced today net income available to common
shareholders of $4.3 million for the three months ended March 31, 2013,
compared with $6.8 million for the three months ended December 31, 2012 and
$770 thousand for the three months ended March 31, 2012. Diluted net income
per common share was $0.26 for the quarter ended March 31, 2013, compared with
$0.41 for the prior quarter and $0.05 for the same quarter last year.

"This quarter marked the most notable announcement in our company's 78 years,"
said R. Wayne Hall, president and chief executive officer of First Financial
and First Federal. "We are excited about building a premier regional bank in
the Southeast through our merger with SCBT. This partnership benefits our
customers, shareholders, and employees. The market continues to react
favorably to the combination as evidenced by the continued enhancement to
shareholder value since our announcement. We have begun the process to seek
required approvals from shareholders and regulators and have commenced to
collaborate on integration plans so that we can leverage the best practices of
both companies."

Significant Development for the Quarter

On February 19, 2013, First Financial entered into a merger agreement with
SCBT Financial Corporation ("SCBT"). Subject to the terms and conditions set
forth in the agreement, First Financial plans to merge with and into SCBT with
SCBT continuing as the surviving corporation after the merger and First
Federal will merge with and into SCBT's bank subsidiary. The merger is
expected to close in the third quarter of 2013, subject to customary closing
conditions. 

Under the terms of the agreement, SCBT will add five First Financial board
members to the combined company's board. Robert J. Hill, Jr., president and
chief executive officer of SCBT, will continue to serve as chief executive
officer of the combined company and R. Wayne Hall will be named president of
the combined company.

Quarterly Results of Operations

First Financial reported net income of $5.3 million for the three months ended
March 31, 2013, compared with $7.8 million for the three months ended December
31, 2012 and $1.7 million for the three months ended March 31, 2012. 

Net interest income

Net interest margin, on a fully tax-equivalent basis, was 4.51% for the
quarter ended March 31, 2013, compared with 4.69% for the quarter ended
December 31, 2012 and 3.84% for the quarter ended March 31, 2012. Net interest
margin adjusted for the cash received and the incremental loan accretion on
the former Cape Fear Bank ("Cape Fear") loan pool was 3.99% for the March 31,
2013 quarter, a 16 basis point decrease from the December 31, 2012
quarter. The net interest margin for the prior quarter was positively impacted
by 8 basis points due to the full resolution and collection of certain
nonperforming loans and by 7 basis points due to accelerated accretion on
called investment securities. The decrease in net interest margin was also a
result of a shift in the mix of earning assets from loans to lower yielding
investment securities and overnight funds. The increase over the same quarter
last year was principally caused by the accretion and amortization of purchase
accounting adjustments resulting from the acquisition of certain Plantation
Federal Savings Bank ("Plantation") assets and liabilities from the FDIC in
April 2012. In addition, improved performance on a Cape Fear loan pool, a
lower cost of funds as maturing time deposits have been replaced with core
deposits and the continued funding mix shift from borrowings, as well as
higher yields on investments due to accelerated accretion on called investment
securities have positively impacted net interest margin as compared with the
same quarter of the prior year. 

Net interest income for the quarter ended March 31, 2013 was $33.1 million, a
decrease of $2.0 million or 5.6% from the prior quarter and an increase of
$4.9 million or 17.3% over the same quarter last year. The decrease from the
prior quarter was primarily due to a $16.8 million decline in average earning
assets and the reduction in net interest margin. The increase over the same
quarter last year was primarily the effect of the improved performance of a
Cape Fear loan pool as well as higher levels of average earning assets from
the Plantation acquisition and Liberty Savings Bank ("Liberty") branch
purchase in April 2012. 

Provision for loan losses

After determining what First Financial believes is an adequate allowance for
loan losses based on the estimated risk inherent in the loan portfolio, the
provision for loan losses is calculated based on the net effect of the change
in the allowance for loan losses and net charge-offs. The provision for loan
losses was $6.0 million for the quarter ended March 31, 2013, which included
$1.3 million due to recognizing impairment on certain Plantation loan pools
which have lower cash flows than originally projected. In accordance with
Accounting Standards Codification ("ASC") 310-30, First Financial evaluates
the projected cash flows of its acquired loans that were identified as
nonperforming at the time of acquisition on a quarterly basis. The ASC 310-30
evaluation is made on all acquired loans, including those loans covered by
loss share agreements with the FDIC ("acquired covered"). As of March 31,
2013, a net impairment of $4.6 million was projected on certain loan pools,
primarily due to several large losses which occurred during the current
quarter, and was recorded as an increase to the allowance for loan losses. A
portion of the higher loss estimate was related to acquired covered loans and
was recorded as an adjustment to the FDIC indemnification asset, which reduced
the provision for loan losses. Excluding the impact from the ASC 310-30
review, the provision for loan losses for the quarter ended March 31, 2013 was
$4.7 million, an increase of $552 thousand or 13.3% over the linked quarter
and a decrease of $2.0 million or 30.1% from the same quarter last year. The
increase over the linked quarter was principally due to relative changes in
the historical loss rates for each quarter. The decrease from the same quarter
last year was related to the continued improvement in historical loss trends
and general stabilization of credit metrics through March 31, 2013. 

Noninterest income

Noninterest income totaled $15.8 million for the quarter ended March 31, 2013,
a decrease of $336 thousand or 2.1% from the prior quarter and an increase of
$2.7 million or 20.1% over the same quarter last year. Noninterest income for
the quarter ended March 31, 2013 included a $1.3 million release on the FDIC
true-up liability, which was recorded in conjunction with the ASC 310-30
quarterly evaluation discussed above as the higher projected losses will
reduce the amount that First Federal might have to potentially remit to the
FDIC based on the initial purchase bid. The decrease from the linked quarter
was primarily the result of lower service charges on deposits ($637 thousand)
and mortgage and other loan income ($1.6 million), partially offset by the
FDIC true-up liability release. Service charges on deposits decreased
principally the result of seasonal declines in transaction volumes due to
customers holding higher average deposit balances after receiving income tax
refunds. The decrease in mortgage and other loan income was due in large part
to lower gains on residential mortgage loans sold into the secondary market as
volumes declined and spreads narrowed.  

The increase in noninterest income over the same quarter last year was
primarily the result of higher mortgage and other loan income ($1.0 million),
bank owned life insurance ($373 thousand) and the FDIC true-up liability
discussed above. The increase in mortgage and other loan income was due in
large part to more favorable hedge adjustments on both the mortgage servicing
rights and the mortgage pipeline hedges in the current quarter due to the
continued low interest rate environment and the addition of correspondent
lenders. The increase in bank owned life insurance was the result of
purchasing these policies during the second half of 2012. 

Noninterest expense

Noninterest expense totaled $35.1 million for the quarter ended March 31,
2013, essentially unchanged from the prior quarter and an increase of $6.4
million or 22.3% over the same quarter last year. While noninterest expenses
were essentially unchanged from the prior quarter, increases in other real
estate owned ("OREO") ($906 thousand) and other smaller variances were offset
by decreases in other loan expense ($911 thousand) and other expense ($1.2
million). The increase in OREO was the result of final purchase accounting
adjustments recorded in the linked quarter on the acquired Plantation OREO as
well as higher write-downs on other OREO properties in the current
quarter. The decrease in other loan expense was due to higher
foreclosure-related expenses in the linked quarter as well as the timing and
amount of reimbursements from the FDIC in the current quarter.   The decrease
in other expense was principally the result of two operations-related losses
recorded in the linked quarter.

In addition to the impact of the Plantation and Liberty transactions and the
FDIC indemnification impairment, the increase in noninterest expense over the
same quarter of the prior year was related to higher OREO expenses ($394
thousand), and professional services ($605 thousand), partially offset by
lower FDIC insurance and regulatory fees ($463 thousand). OREO expenses
increased primarily as the result of lower gains recognized on sold
properties. The increase in professional fees was the result of merger-related
expenses during the current quarter. The decrease in FDIC insurance and
regulatory fees was the result of lower regulatory fees as a result of
becoming a Federal Reserve member bank.

Income Taxes

The income tax expense for the three months ended March 31, 2013 totaled $2.6
million, a decrease of $1.3 million or 32.9% from the linked quarter and a
decrease of $1.6 million or 38.0% from the same quarter last year. The quarter
ended March 31, 2012 included a tax expense of $2.1 million for the state
deferred tax asset write-off related to a difference in applicable South
Carolina tax laws for banks versus thrifts upon First Federal's conversion to
a state-chartered commercial bank. In addition, the variances from both prior
periods were the result of the change in pre-tax income. The effective tax
rate for the three months ended March 31, 2013 was 33.36%, compared with
33.39% and 70.92% for the quarters ended December 31, 2012 and March 31, 2012,
respectively. The decreases in the effective tax rate were principally due to
higher tax-exempt income resulting from purchasing bank owned life insurance
during the second half of 2012 and the write-off of the state deferred tax
asset in the first quarter of 2012.

Balance Sheet

Total assets at March 31, 2013 were $3.2 billion, essentially unchanged from
December 31, 2012 and an increase of $71.1 million or 2.3% over March 31,
2012. While total assets were essentially unchanged from December 31, 2012,
decreases in total loans, loans held for sale the FDIC indemnification asset
from December 31, 2012 were substantially offset by increases in
interest-bearing deposits with banks and securities available for sale. The
increase in total assets over March 31, 2012 was principally due to the
Plantation and Liberty acquisitions, partially offset by a decrease in
investment securities as part of repositioning the balance sheet during the
second quarter of 2012. 

Investment securities at March 31, 2013 totaled $348.7 million, an increase of
$58.4 million or 20.1% over December 31, 2012 and a decrease of $151.6 million
or 30.3% from March 31, 2012. The increase over December 31, 2012 was due to
new security purchases, partially offset by normal principal reductions and
cash flows from called securities. The decrease from March 31, 2012 was
primarily the result of the sale of $203.6 million of mortgage-backed
securities during the June 30, 2012 quarter as part of repositioning the
balance sheet, partially offset by new security purchases since the
repositioning. 

Total loans at March 31, 2013 decreased $19.2 million or 0.8% from December
31, 2012 and increased $120.6 million or 5.1% over March 31, 2012. The
decrease from December 31, 2012 was a result of reductions in the commercial
and consumer loan categories due to several large payoffs and paydowns on
commercial real estate and commercial land loans, higher loss claims on the
Plantation portfolio, and normal cash flows. The decline in commercial loans
is consistent with a strategy to reduce problem and criticized loan balances,
both legacy as well as those in acquired portfolios. The increase in total
loans over March 31, 2012 was primarily the result of the Plantation and
Liberty acquisitions which occurred during the June 30, 2012 quarter,
partially offset by normal loan portfolio activity. 

First Federal's credit quality metrics at March 31, 2013 reflect seasonal
decreases normally experienced in the first calendar quarter of each year as
well as improved performance over the same quarter last year. Delinquent loans
at March 31, 2013 totaled $13.7 million, a decrease of $3.3 million or 19.6%
from December 31, 2012 and a decrease of $905 thousand or 6.2% from March 31,
2012. The decrease from the prior quarter was driven by lower delinquent
consumer loans due to normal seasonal fluctuations, partially offset by higher
delinquent commercial loans, of which several larger loans are in the process
of resolution. The decrease from the same quarter last year was primarily the
result of continued collection efforts. Total delinquent loans at March 31,
2013 included $3.4 million in acquired covered loans, as compared with $1.6
million and $3.1 million at December 31, 2012 and March 31, 2012,
respectively. 

Nonperforming assets at March 31, 2013 totaled $65.0 million, a decrease of
$2.8 million or 4.2% from December 31, 2012 and a decrease of $6.7 million or
9.4% from March 31, 2012. The decreases were principally the result of OREO
sales outpacing new foreclosures. Acquired covered nonperforming loans totaled
$8.8 million at March 31, 2013, compared with $8.6 million and $15.6 million
at December 31, 2012 and March 31, 2012, respectively. Acquired covered OREO
totaled $9.7 million at March 31, 2013, compared with $9.6 million and $11.4
million at December 31, 2012 and March 31, 2012, respectively. 

Net charge-offs for the quarter ended March 31, 2013 totaled $6.1 million, a
decrease of $270 thousand or 4.3% from the prior quarter and a decrease of
$3.4 million or 36.1% from the same quarter last year. 

The allowance for loan losses was 1.92% of total loans at March 31, 2013,
compared with 1.77% of total loans at December 31, 2012 and 2.16% of total
loans at March 31, 2013. The increase in the allowance ratio over December 31,
2012 was due to establishing a $4.6 million reserve related to estimated
higher losses on acquired Plantation loans based on the ASC 310-30 review
discussed above. Of this amount, $3.3 million was related to acquired covered
loans and was recorded as an increase to the FDIC indemnification asset. The
increase was partially offset by the continued improvement in historical loss
factors and stable credit metrics over the past twelve months. In addition,
the change in the allowance ratio from March 31, 2012 was affected by
acquiring loans in the Plantation and Liberty acquisitions that are carried at
fair value and did not have an associated allowance at acquisition. The
allowance for loan losses at March 31, 2013 was 2.08% of loans excluding
acquired covered loans, and represented 1.2 times coverage of the non-covered
nonperforming loans. 

The FDIC indemnification asset at March 31, 2013 was $58.9 million, a decrease
of $21.4 million or 26.6% from December 31, 2012 and an increase of $12.6
million or 27.3% over March 31, 2012. The decrease from December 31, 2012 was
due to the receipt of $20.7 million in claims reimbursement from the FDIC
during the quarter as well as recognizing a potential impairment of $3.8
million on the FDIC indemnification asset related to the Cape Fear acquired
portfolio, partially offset by recognizing $3.3 million of potential
additional claims to the FDIC related to the Plantation loss share
agreement. The increase over March 31, 2012 was the result of establishing a
$35.9 million indemnification asset during 2012 to recognize the loss share
agreement associated with the Plantation transaction, the $3.3 million added
to the FDIC indemnification asset this quarter, and normal accretion,
partially offset by the claims reimbursement and amortization of the potential
impairment.  

Bank owned life insurance totaled $51.0 million at March 31, 2013, essentially
unchanged from December 31, 2012 and an increase of $51.0 million over March
31, 2013. The increase was the result of establishing a bank owned life
insurance program on certain corporate officers as part of a strategy to
offset the costs of existing employee benefit plans. 

Other assets totaled $74.8 million at March 31, 2013, a decrease of $2.4
million or 3.2% from December 31, 2012 and a decrease of $18.1 million or
19.5% from March 31, 2012. The decrease from December 31, 2012 was principally
the result of a $2.0 million decline in OREO as sales of properties continue
to outpace foreclosures, combined with miscellaneous reductions in other asset
categories. The decrease from March 31, 2012 was principally due to current
tax adjustments recorded and federal tax refunds received during 2012.

Core deposits, which include checking, savings, and money market accounts,
totaled $1.7 billion at March 31, 2013, an increase of $53.2 million or 3.2%
over December 31, 2012 and an increase of $390.7 million or 29.9% over March
31, 2012. The increases were primarily the result of the Plantation and
Liberty transactions as well as the introduction of new retail deposit
products and sales processes during 2012.  Time deposits at March 31, 2013
totaled $903.4 million, a decrease of $48.1 million or 5.1% from December 31,
2012 and a decrease of $54.7 million or 5.7% from March 31, 2012. The
decreases were due to a strategy to focus on core transaction accounts and to
reduce high rate retail and wholesale time deposits as they matured. 

Advances from the Federal Home Loan Bank ("FHLB") at March 31, 2013 totaled
$233.0 million, unchanged from December 31, 2012 and a decrease of $300.0
million or 56.3% from March 31, 2012. The decrease from March 31, 2012 was
primarily the effect of prepaying $125.0 million of long-term FHLB advances
during the June 30, 2012 quarter as part of repositioning the balance sheet,
as well as a shift in funding mix due to the organic growth of core deposits
and the acquisition of low-cost deposits from Plantation and Liberty. 

Shareholders' equity at March 31, 2013 was $304.7 million, an increase of $5.0
million or 1.7% over December 31, 2012 and an increase of $26.6 million or
9.6% over March 31, 2012. The increases were due to the effect of net
operating results. First Financial remained well capitalized at March 31, 2013
with total risk-based capital of 16.58%, Tier 1 risk-based capital of 15.30%,
and Tier 1 leverage capital of 10.72%. The tangible common equity to tangible
common assets ratio increased to 7.23% at March 31, 2013, compared with 7.07%
at December 31, 2012 and 6.70% at March 31, 2012. First Federal's regulatory
capital ratios are in excess of "well-capitalized" minimums. 

Cash Dividend Declared

On April 25, 2013, First Financial declared a quarterly cash dividend of
$12.50 per share on its Fixed Rate Cumulative Perpetual Preferred Stock,
Series A, payable on May 15, 2013 to preferred shareholders of record as of
May 3, 2013. First Financial also declared a quarterly cash dividend of $0.05
per common share, payable on May 23, 2013 to shareholders of record as of May
9, 2013.

Additional Information About The Merger And Where To Find It

In connection with the proposed merger referenced above, SCBT has filed with
the Securities and Exchange Commission (the "SEC") a Registration Statement on
Form S-4 that includes a Joint Proxy Statement of First Financial and SCBT and
a Prospectus of SCBT, as well as other relevant documents concerning the
proposed transaction. SHAREHOLDERS ARE STRONGLY URGED TO READ THE REGISTRATION
STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER AND
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION REGARDING THE PROPOSED MERGER. A free copy of the Proxy
Statement/Prospectus, as well as other filings containing information about
First Financial and SCBT, may be obtained at the SEC's Internet site
(www.sec.gov). In addition, free copies of documents filed with the SEC may be
obtained by directing a written request to either SCBT Financial Corporation,
Post Office Box 1030, Columbia, SC 29202, Attention: Richard C. Mathis,
Executive Vice President and Treasurer, or First Financial Holdings, Inc.,
2440 Mall Drive, Charleston, SC 29406  Attention: Blaise Bettendorf, Chief
Financial Officer.

First Financial, SCBT and their respective directors and executive officers
may be deemed to be participants in the solicitation of proxies from the
shareholders of First Financial and SCBT in connection with the merger. 
Information about the directors and executive officers of First Financial and
their ownership of First Financial common stock is set forth in First
Financial's Form 10-K for the year ended December 31, 2012 filed with the SEC
on March 18, 2013, which is available at the SEC's Internet site
(www.sec.gov), and at the First Financial address in the preceding paragraph. 
Information about the directors and executive officers of SCBT and their
ownership of SCBT common stock is set forth in SCBT's definitive proxy
statement in connection with its 2013 Annual Meeting of Shareholders filed
with the SEC on March 3, 2013, which is also available at the SEC's internet
site and from SCBT at the address set forth in the preceding paragraph. 
Additional information regarding the interests of these participants may be
obtained by reading the Proxy Statement/Prospectus regarding the proposed
transaction.

About First Financial

First Financial Holdings, Inc. ("First Financial") (Nasdaq:FFCH) is a
Charleston, South Carolina financial services provider with $3.2 billion in
total assets as of March 31, 2013. First Financial offers integrated financial
solutions, including personal, business, and wealth management services. First
Federal Bank ("First Federal"), which was founded in 1934 and is the primary
subsidiary of First Financial, serves individuals and businesses throughout
coastal South Carolina, Florence, and Greenville, South Carolina, and
Wilmington, North Carolina.  First Financial subsidiaries include: First
Federal; First Southeast Investor Services, Inc., a registered broker-dealer;
and First Southeast 401(k) Fiduciaries, Inc., a registered investment
advisor. First Federal is the largest financial institution headquartered in
the Charleston, South Carolina metropolitan area and the third largest
financial institution headquartered in South Carolina, based on asset
size. Additional information about First Financial is available at
www.firstfinancialholdings.com.

Non-GAAP Financial Information

In addition to results presented in accordance with accounting principles
generally accepted in the United States of America ("GAAP"), this press
release includes non-GAAP financial measures such as the efficiency ratio, the
tangible common equity to tangible assets ratio, tangible common book value
per share, pre-tax pre-provision earnings, and adjusted net interest
margin. First Financial believes these non-GAAP financial measures provide
additional information that is useful to investors in understanding its
underlying performance, business, and performance trends and such measures
help facilitate performance comparisons with others in the banking industry as
well as period-to-period comparisons. Non-GAAP measures have inherent
limitations, are not required to be uniformly applied, and are not
audited. Readers should be aware of these limitations and should be cautious
in their use of such measures. To mitigate these limitations, First Financial
has procedures in place to ensure that these measures are calculated using the
appropriate GAAP or regulatory components in their entirety and to ensure that
its performance is properly reflected to facilitate consistent
period-to-period comparisons. Although management believes the above non-GAAP
financial measures enhance readers' understanding of First Financial's
business and performance, these non-GAAP measures should not be considered in
isolation, or as a substitute for GAAP basis financial measures. 

Please refer to the Selected Financial Information table and the Non-GAAP
Reconciliation table later in this release for additional information.

Forward-Looking Statements 

Statements in this release that are not statements of historical fact,
including without limitation, statements that include terms such as
"believes," "expects," "anticipates," "estimates," "forecasts," "intends,"
"plans," "targets," "potentially," "probably," "projects," "outlook," or
similar expressions or future conditional verbs such as "may," "will,"
"should," "would," or "could" constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements regarding First Financial's future financial and
operating results, plans, objectives, expectations and intentions involve
risks and uncertainties, many of which are beyond First Financial's control or
are subject to change. No forward-looking statement is a guarantee of future
performance and actual results could differ materially from those anticipated
by the forward-looking statements. Factors that could cause or contribute to
such differences 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 delinquent and nonperforming loans
and charge-offs; changes in First Federal's 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 banking regulators,
including the possibility that any such regulatory authority may, among other
things, require First Federal to increase its allowance for loan losses,
write-down assets, change First Federal's regulatory capital position or
affect its ability to borrow funds or maintain or increase deposits, which
could adversely affect liquidity and earnings; First Financial's ability to
control operating costs and expenses; First Financial's ability to
successfully integrate any assets, liabilities, customers, systems, and
management personnel acquired or may in the future acquire into its operations
and its 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, including new or revised rules and regulations implemented pursuant
to the Dodd-Frank Wall Street Reform and Consumer Protection Act; and closing
conditions related to the proposed merger with SCBT, including regulatory and
shareholder approvals required for the consummation of the proposed merger
with SCBT. Other risks are also detailed in First Financial's Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K that
are filed with the Securities and Exchange Commission ("SEC"), which are
available at the SEC's website www.sec.gov. Other factors not currently
anticipated may also materially and adversely affect First Financial's results
of operations, financial position, and cash flows. There can be no assurance
that future results will meet expectations. While First Financial believes
that the forward-looking statements in this release are reasonable, the reader
should not place undue reliance on any forward-looking statement. In addition,
these statements speak only as of the date made. First Financial does not
undertake, and expressly disclaims any obligation to update or alter any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law.

                                                                          
 
FIRST FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
                                                                          
                     As of and for the Quarters Ended
(dollars in          March 31,    December 31, September    June 30,     March 31,
thousands)           2013         2012         30,          2012         2012
                                               2012
Average for the                                                           
Quarter
Assets                $ 3,200,485  $ 3,216,018  $ 3,283,512  $ 3,339,705  $ 3,151,385
Investment            316,426      283,929      291,223      443,181      490,356
securities
Loans                 2,481,410    2,545,956    2,608,522    2,564,789    2,378,789
Allowance for loan    44,375       45,997       48,329       50,547       52,282
losses
Deposits              2,576,968    2,594,112    2,664,207    2,596,642    2,228,613
Borrowings            280,229      282,122      294,796      428,505      609,665
Shareholders' equity  301,921      296,851      290,047      285,672      277,390
                                                                          
Performance Metrics                                                       
Return on average    0.67%        0.97%        0.81%        1.52%        0.22%
assets^1
Return on average
shareholders'         7.06         10.48        9.14         17.72        2.52 
equity^1
Net interest margin   4.51         4.69         4.35         4.08         3.84 
(FTE)^2
Net interest margin,
adjusted              3.99         4.15         4.29         4.08         3.84 
(non-GAAP)^3
Efficiency ratio      73.04        67.69        69.19        66.05        68.87 
(non-GAAP)^1,3
Pre-tax
pre-provision         $ 13,855     $ 15,905     $ 14,716     $ 24,993     $ 12,725 
earnings
(non-GAAP)^3
                                                                          
Capital Ratios                                                            
Equity to assets     9.47%        9.32%        9.01%        8.69%        8.84%
Tangible common
equity to tangible    7.23         7.07         6.77         6.47         6.70 
assets (non-GAAP)^3
Book value per        $ 14.50      $ 14.20      $ 13.77      $ 13.45      $ 12.89 
common share
Tangible book value
per common share      14.04        13.71        13.25        12.91        12.75 
(non-GAAP)^3
Dividends             0.05         0.05         0.05         0.05         0.05 
Shares outstanding,   16,533       16,527       16,527       16,527       16,527 
end of period (000s)
Tier 1 leverage      10.72%       10.54%       10.12%       9.79%        10.22%
capital ratio
Tier 1 risk-based     15.30        14.89        14.42        13.89        14.81 
capital ratio
Total risk-based      16.58        16.16        15.70        15.16        16.08 
capital ratio
Tier 1 leverage
capital ratio (First  10.24        9.97         9.47         9.06         9.00 
Federal)
Tier 1 risk-based
capital ratio (First  14.63        14.10        13.50        12.86        13.05 
Federal)
Total risk-based
capital ratio (First  15.92        15.37        14.78        14.13        14.32 
Federal)
                                                                          
Asset Quality                                                             
Metrics
Allowance for loan
losses as a percent  1.92%        1.77%        1.80%        1.85%        2.16%
of loans
Allowance for loan
losses as a percent   97.42        89.30        94.53        97.72        101.75 
of nonperforming
loans
Nonperforming loans
as a percent of       1.97         1.98         1.90         1.90         2.12 
loans
Nonperforming assets
as a percent of
loans and other       2.61         2.70         2.72         2.94         3.02 
repossessed assets
acquired
Nonperforming assets
as a percent of       2.02         2.11         2.18         2.36         2.28 
total assets
Net loans
charged-off as a      0.98         0.99         1.07         1.04         1.60 
percent of average
loans^1
Net loans             $ 6,063      $ 6,333      $ 6,981      $ 6,673      $ 9,493 
charged-off
                                                                          
Asset Quality
Metrics Excluding                                                         
Acquired Covered
Loans
Allowance for loan
losses as a percent  2.08%        1.94%        1.99%        2.06%        2.28%
of legacy loans
Allowance for loan
losses as a percent
of                    118.82       108.23       118.82       123.30       148.22 
legacy nonperforming
loans
Nonperforming loans
as a percent of       1.75         1.79         1.67         1.67         1.54 
legacy loans
Nonperforming assets
as a percent of
legacy loans          2.04         2.17         1.97         2.01         2.00 
and other
repossessed assets
acquired
Nonperforming assets
as a percent of       1.45         1.54         1.42         1.45         1.42 
total assets
 
^1  Represents an annualized rate.
^2  Net interest margin is presented on an annual basis and includes taxable
equivalent adjustments to interest income based on a federal tax rate of 35%.
^3 See Non-GAAP Reconciliation table for details.

 
FIRST FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                                                                      
                             For the Quarters Ended
(in thousands, except per    March 31, December  September June 30,  March 31,
share data)                  2013      31,       30,       2012      2012
                                       2012      2012
                                                                      
INTEREST INCOME                         
Interest and fees on loans    $ 36,993  $ 38,927  $ 37,104  $ 35,643  $ 32,476
Interest and dividends on                                             
investment securities
Taxable                       1,931     2,207     2,429     3,118     3,529
Tax-exempt                    294       312       342       420       338
Other                         111       103       139       162       16
Total interest income         39,329    41,549    40,014    39,343    36,359
INTEREST EXPENSE                                                      
Interest on deposits          3,172     3,388     3,747     3,981     3,951
Interest on borrowed money    3,019     3,072     3,070     3,649     4,156
Total interest expense        6,191     6,460     6,817     7,630     8,107
NET INTEREST INCOME           33,138    35,089    33,197    31,713    28,252
Provision for loan losses     5,972     4,161     4,533     4,697     6,745
Net interest income after     27,166    30,928    28,664    27,016    21,507
provision for loan losses
NONINTEREST INCOME                                                    
Service charges on deposit    7,263     7,900     7,772     7,558     7,302
accounts
Mortgage and other loan       4,435     5,987     4,061     4,372     3,435
income
Trust and plan                1,067     1,219     1,117     1,078     1,081
administration income
Brokerage fees                714       810       655       875       664
Bank owned life insurance     373       382       241       ---       ---
income
Other income                  932       680       513       699       769
Other-than-temporary
impairment losses on          (268)     (144)     (145)     (145)     (69)
investment securities
FDIC true-up liability        1,321     ---       ---       ---       ---
release
(Loss) gain on acquisition    ---       (661)     ---       14,550    ---
Gain on sale or call of       ---       ---       334       3,543     ---
investment securities
Total noninterest income      15,837    16,173    14,548    32,530    13,182
NONINTEREST EXPENSE                                                   
Salaries and employee         16,335    16,020    15,621    15,212    15,142
benefits
Occupancy costs               2,214     2,214     2,333     2,933     2,267
Furniture and equipment       2,068     2,033     2,132     1,893     1,809
Other real estate owned, net  924       18        1,030     134       530
FDIC insurance and            531       646       693       761       994
regulatory fees
Professional services         2,070     1,838     1,980     1,875     1,465
Advertising and marketing     866       714       964       966       652
Other loan expense            1,372     2,283     1,620     1,283     1,351
Intangible amortization       512       512       512       368       90
FDIC indemnification asset    3,806     3,423     563       ---       ---
impairment
Other expense                 4,422     5,656     5,581     5,300     4,409
FHLB prepayment termination   ---       ---       ---       8,525     ---
charge
Total noninterest expense     35,120    35,357    33,029    39,250    28,709
Income before income taxes    7,883     11,744    10,183    20,296    5,980
Income tax expense            2,630     3,921     3,516     7,712     4,241
NET INCOME                    5,253     7,823     6,667     12,584    1,739
Preferred stock dividends     813       812       813       812       813
Accretion on preferred stock  165       163       160       158       156
discount
NET INCOME AVAILABLE TO       $ 4,275   $ 6,848   $ 5,694   $ 11,614  $ 770
COMMON SHAREHOLDERS
                                                                      
Net income per common share                                           
Basic                         $ 0.26    $ 0.41    $ 0.34    $ 0.70    $ 0.05
Diluted                       0.26      0.41      0.34      0.70      0.05
                                                                      
Average common shares                                                 
outstanding
Basic                         16,529    16,527    16,527    16,527    16,527
Diluted                       16,547    16,531    16,529    16,528    16,528
 

 
FIRST FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN ANALYSIS (Unaudited)
                                                                                                          
                 For the Quarters Ended                                                                   
                 March 31, 2013                   December 31, 2012                Change in
(dollars in      Average    Interest  Average     Average    Interest  Average     Average    Interest   Basis
thousands)       Balance              Rate        Balance              Rate        Balance               Points
Earning assets                                                                                            
Interest-bearing
deposits with     $ 62,441   $ 29     0.19%        $ 32,711   $ 13     0.17%        $ 29,730   $ 16       2 
banks
Investment        316,426    2,225     3.02        283,929    2,519     3.78        32,497     (294)      (76) 
securities^1
Total loans^2     2,481,410  36,613    5.98   ^ 3  2,545,956  38,435    6.01   ^ 3  (64,546)   (1,822)    (3) 
Loans held for    47,156     380       3.22        56,856     492       3.46        (9,700)    (112)      (24) 
sale
FDIC
indemnification   70,794     82        0.47        75,530     90        0.47        (4,736)    (8)        --- 
asset
Total earning     2,978,227  39,329    5.35   ^ 3  2,994,982  41,549    5.55   ^ 3  (16,755)   (2,220)    (20) 
assets
Interest-bearing                                                                                          
liabilities
Deposits          2,180,741  3,172     0.59        2,205,336  3,388     0.61        (24,595)   (216)      (2) 
Borrowings        280,229    3,019     4.37        282,122    3,072     4.33        (1,893)    (53)       4 
Total
interest-bearing  2,460,970  6,191     1.02        2,487,458  6,460     1.03        (26,488)   (269)      (1) 
liabilities
                                                                                                          
Net interest                 $ 33,138                         $ 35,089                         $ (1,951)  
income
                                                                                                          
Net interest                          4.51%   ^ 3                      4.69%   ^ 3                        (18) 
margin 
 
^1 Interest income used in the average rate calculation includes the tax equivalent adjustments of $158
thousand and $168 thousand for the quarters ended
 March 31, 2013 and December 31, 2012, respectively, calculated based on a federal tax rate of 35%.
^2 Average loans include nonaccrual loans. Loan fees, which are not material for any of the periods, have been
included in loan interest income for the rate calculation.
^3 See Non-GAAP Reconciliation for impact of improved performance of Cape Fear loan pool on net interest
margin.
                                                                                                          
 
 
                 For the Quarters Ended                                                                   
                 March 31, 2013                   March 31, 2012                   Change in
(dollars in      Average    Interest  Average     Average    Interest  Average     Average    Interest   Basis
thousands)       Balance              Rate        Balance              Rate        Balance               Points
Earning Assets                                                                                            
Interest-bearing
deposits with     $ 62,441   $ 29     0.19%        $ 8,484    $ 1      0.05%        $ 53,957   $ 28       14 
banks
Investment        316,426    2,225     3.02        490,356    3,867     3.31        (173,930)  (1,642)    (29) 
securities^1
Total loans^2     2,481,410  36,613    5.98   ^ 3  2,378,879  32,126    5.43        102,531    4,487      55 
Loans held for    47,156     380       3.22        41,121     350       3.40        6,035      30         (18) 
sale
FDIC
indemnification   70,794     82        0.47        48,774     15        0.12        22,020     67         35 
asset
Total Earning     2,978,227  39,329    5.35   ^ 3  2,967,614  36,359    4.94        10,613     2,970      41 
Assets
Interest-bearing                                                                                          
liabilities
Deposits          2,180,741  3,172     0.59        1,946,317  3,951     0.82        234,424    (779)      (23) 
Borrowings        280,229    3,019     4.37        609,665    4,156     2.73        (329,436)  (1,137)    164 
Total
interest-bearing  2,460,970  6,191     1.02        2,555,982  8,107     1.28        (95,012)   (1,916)    (26) 
liabilities
                                                                                                          
Net interest                 $ 33,138                         $ 28,252                         $ 4,886    
income
                                                                                                          
Net interest                          4.51%   ^ 3                      3.84%                              67 
margin^3
                                                                                                          
 
^1 Interest income used in the average rate calculation includes the tax equivalent adjustment of $158
thousand, and $182 thousand for the quarters
 ended March 31, 2013, and 2012, respectively, calculated based on a federal tax rate of 35%.
^2 Average loans include nonaccrual loans. Loan fees, which are not material for any of the periods, have been
included in loan interest income for the rate calculation.
^3 See Non-GAAP Reconciliation for impact of improved performance of Cape Fear loan pool on net interest
margin.
 

                                                                         
 
 
FIRST FINANCIAL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
                                                                         
                    March 31,    December 31, September    June 30,     March 31,
(in thousands)      2013         2012         30,          2012         2012
                                              2012
                                                                         
ASSETS                                                                   
Cash and due from    $ 49,190     $ 60,290     $ 50,749     $ 62,831     $ 57,645
banks
Interest-bearing     80,110       57,161       35,668       7,270        5,879
deposits with banks
Total cash and cash  129,300      117,451      86,417       70,101       63,524
equivalents
Investment                                                               
securities
Securities
available for sale,  314,597      253,798      236,048      244,059      442,531
at fair value
Securities held to
maturity, at         14,869       15,555       17,331       20,014       19,835
amortized cost
Nonmarketable        19,245       20,914       23,254       29,327       37,965
securities 
Total investment     348,711      290,267      276,633      293,400      500,331
securities
Loans                                                                    
Residential          1,037,859    1,031,533    1,080,406    1,099,474    1,029,176
Commercial           663,733      681,119      721,587      758,604      606,468
Consumer             774,550      782,672      772,376      774,405      719,923
Total loans          2,476,142    2,495,324    2,574,369    2,632,483    2,355,567
Less: Allowance for  47,427       44,179       46,351       48,799       50,776
loan losses
Total loans, net     2,428,715    2,451,145    2,528,018    2,583,684    2,304,791
Loans held for sale  33,752       55,201       53,761       72,402       52,339
FDIC
indemnification      58,917       80,268       75,017       77,311       46,272
asset
Premises and         83,924       85,378       83,916       85,285       83,146
equipment, net
Bank owned life      50,997       50,624       50,241       10,000       ---
insurance
Other intangible     7,573        8,025        8,478        8,931        2,310
assets
Other assets         74,758       77,199       83,006       103,060      92,825
Total assets         $ 3,216,647  $ 3,215,558  $ 3,245,487  $ 3,304,174  $ 3,145,538
                                                                         
LIABILITIES                                                              
Deposits                                                                 
Noninterest-bearing  $ 431,003    $ 388,259    $ 382,077    $ 359,352    $ 307,750
checking
Interest-bearing     509,295      511,647      507,262      502,731      435,320
checking
Savings and money    756,818      743,970      730,365      731,428      563,344
market
Retail time          807,667      845,391      869,544      934,245      753,481
deposits
Wholesale time       95,737       106,066      127,509      175,446      204,594
deposits
 Total deposits      2,600,520    2,595,333    2,616,757    2,703,202    2,264,489
Advances from FHLB   233,000      233,000      253,000      233,000      533,000
Long-term debt       47,204       47,204       47,204       47,204       47,204
Other liabilities    31,234       40,380       36,026       33,504       22,802
Total liabilities    2,911,958    2,915,917    2,952,987    3,016,910    2,867,495
                                                                         
SHAREHOLDERS'                                                            
EQUITY
Preferred stock      1            1            1            1            1
Common stock         215          215          215          215          215
Additional paid-in   197,099      196,819      196,612      196,409      196,204
capital
Treasury stock, at   (103,563)    (103,563)    (103,563)    (103,563)    (103,563)
cost
Retained earnings    212,302      208,853      202,832      198,100      187,311
Accumulated other    (1,365)      (2,684)      (3,597)      (3,898)      (2,125)
comprehensive loss
Total shareholders'  304,689      299,641      292,500      287,264      278,043
equity
Total liabilities
and shareholders'    $ 3,216,647  $ 3,215,558  $ 3,245,487  $ 3,304,174  $ 3,145,538
equity
 

                                                                   
 
FIRST FINANCIAL HOLDINGS, INC.
 LOANS 
                                                                   
(in           March 31,    December 31, September    June 30,     March 31,
thousands)    2013         2012         30,          2012         2012
                                        2012
Residential                                                        
loans
 Residential   $ 963,053    $ 956,355    $ 1,008,130  $ 1,023,800  $ 972,881
1-4 family
 Residential  25,895       22,439       19,660       19,601       15,501
construction
 Residential  48,911       52,739       52,616       56,073       40,794
land
 Total
residential   1,037,859    1,031,533    1,080,406    1,099,474    1,029,176
loans
                                                                   
Commercial                                                         
loans
 Commercial   130,169      118,379      125,345      107,804      88,054
business
 Commercial   467,890      491,567      520,135      555,588      447,339
real estate
 Commercial   1,092        1,064        1,801        17,201       16,289
construction
 Commercial   64,582       70,109       74,306       78,011       54,786
land
Total
commercial    663,733      681,119      721,587      758,604      606,468
loans
                                                                   
Consumer                                                           
loans
 Home equity  373,108      384,664      380,000      388,534      347,825
 Manufactured 282,114      280,100      277,744      276,607      275,845
housing
 Marine       79,328       75,736       69,314       59,643       50,458
 Other        40,000       42,172       45,318       49,621       45,795
consumer
Total
consumer      774,550      782,672      772,376      774,405      719,923
loans
Total loans   2,476,142    2,495,324    2,574,369    2,632,483    2,355,567
Less:
Allowance for 47,427       44,179       46,351       48,799       50,776
loan losses
Total loans,   $ 2,428,715  $ 2,451,145  $ 2,528,018  $ 2,583,684  $ 2,304,791
net
 
                                                                   

 
FIRST FINANCIAL HOLDINGS, INC.
DELINQUENT LOANS
                                                                                                                  
               March 31, 2013        December 31, 2012     September 30, 2012    June 30, 2012         March 31, 2012
(30-89 days
past due)       $         % of        $         % of        $         % of        $         % of        $         % of
(dollars in              Portfolio             Portfolio             Portfolio             Portfolio             Portfolio 
thousands)
Residential                                                                                                       
loans
 Residential    $ 1,433  0.15%        $ 2,800  0.29%        $ 2,361  0.23%        $ 1,244  0.12%        $ 1,889  0.19%
1-4 family
 Residential    284       1.10        ---      ---          ---      ---          ---      ---          ---      --- 
construction
 Residential    725       1.48        47        0.09        157       0.30        475       0.85        123       0.30 
land
 Total
residential     2,442     0.24        2,847     0.28        2,518     0.23        1,719     0.16        2,012     0.20 
loans
                                                                                                                  
Commercial                                                                                                        
loans
 Commercial     1,255     0.96        847       0.72        582       0.46        903       0.84        1,677     1.90 
business
 Commercial     4,252     0.91        3,492     0.71        2,397     0.46        3,014     0.54        3,065     0.69 
real estate
 Commercial     1,540     2.38        1,573     2.24        318       0.43        675       0.87        2,271     4.15 
land
Total
commercial      7,047     1.06        5,912     0.87        3,297     0.46        4,592     0.61        7,013     1.16 
loans
                                                                                                                  
Consumer loans                                                                                                    
 Home equity    2,758     0.74        4,414     1.15        2,204     0.58        2,017     0.52        3,315     0.95 
 Manufactured   1,162     0.41        3,241     1.16        2,506     0.90        1,835     0.66        1,502     0.54 
housing
 Marine         154       0.19        284       0.37        227       0.33        300       0.50        358       0.71 
 Other          177       0.44        384       0.91        742       1.64        626       1.26        445       0.97 
consumer
Total           4,251     0.55        8,323     1.06        5,679     0.74        4,778     0.62        5,620     0.78 
consumer loans
Total
delinquent      $ 13,740 0.55%        $ 17,082 0.68%        $ 11,494 0.45%        $ 11,089 0.42%        $ 14,645 0.62%
loans
 
 
 
FIRST FINANCIAL HOLDINGS, INC.
 NONPERFORMING ASSETS 
                                                                                                                  
               March 31, 2013        December 31, 2012     September 30, 2012    June 30, 2012         March 31, 2012
(dollars in     $        % of        $         % of        $         % of        $         % of        $         % of
thousands)               Portfolio             Portfolio             Portfolio             Portfolio             Portfolio
Residential                                                                                                       
loans
 Residential    $ 7,693  0.80%        $ 7,137  0.75%        $ 10,881 1.08%        $ 10,460 1.02%        $ 6,649  0.68%
1-4 family
 Residential    576       1.18        785       1.49        1,558     2.96        1,423     2.54        1,398     3.43 
land
 Total
residential     8,269     0.80        7,922     0.77        12,439    1.15        11,883    1.08        8,047     0.78 
loans
                                                                                                                  
Commercial                                                                                                        
loans
 Commercial     1,813     1.39        1,460     1.23        1,407     1.12        1,198     1.11        1,931     2.19 
business
 Commercial     18,213    3.89        18,386    3.74        15,853    3.05        15,918    2.87        18,474    4.13 
real estate
 Commercial     ---       ---         247       23.21       247       13.71       261       1.52        261       1.60 
construction
 Commercial     3,845     5.95        4,058     5.79        2,990     4.02        4,577     5.87        5,240     9.56 
land
Total
commercial      23,871    3.60        24,151    3.55        20,497    2.84        21,954    2.89        25,906    4.27 
loans
                                                                                                                  
Consumer loans                                                                                                    
 Home equity    9,295     2.49        10,049    2.61        10,145    2.67        10,636    2.74        9,779     2.81 
 Manufactured   3,085     1.09        3,355     1.20        2,221     0.80        2,197     0.79        2,648     0.96 
housing
 Marine         125       0.16        139       0.18        90        0.13        29        0.05        63        0.12 
 Other          265       0.66        275       0.65        228       0.50        306       0.62        131       0.29 
consumer
Total           12,770    1.65        13,818    1.77        12,684    1.64        13,168    1.70        12,621    1.75 
consumer loans
Total
nonaccrual      44,910    1.81        45,891    1.84        45,620    1.77        47,005    1.79        46,574    1.98 
loans
Loans 90+ days  6                     43                    74                    75                    51        
still accruing
Restructured
loans, still    3,768                 3,536                 3,340                 2,857                 3,276     
accruing
Total
nonperforming   48,684   1.97%        49,470   1.98%        49,034   1.90%        49,937   1.90%        49,901   2.12%
loans
Other
repossessed     16,310                18,338                21,579                28,191                21,818    
assets
acquired
Total
nonperforming   $ 64,994              $ 67,808              $ 70,613              $ 78,128              $ 71,719  
assets
 
 
 
FIRST FINANCIAL HOLDINGS, INC.
 NET CHARGE-OFFS 
                                                                                                                  
               March 31, 2013        December 31, 2012     September 30, 2012    June 30, 2012         March 31, 2012
(dollars in     $         % of        $         % of        $         % of        $         % of        $         % of
thousands)               Portfolio*            Portfolio*            Portfolio*            Portfolio*            Portfolio* 
Residential                                                                                                       
loans
 Residential    $ 1,215  0.50%        $ 2,756  1.10%        $ 294    0.12%        $ 1,070  0.42%        $ 507    0.21%
1-4 family
 Residential    (144)    (1.13)       257       1.89        403       2.91        78        0.59        701       6.75 
land
 Total
residential     1,071     0.41        3,013     1.13        697       0.26        1,148     0.42        1,208     0.47 
loans
                                                                                                                  
Commercial                                                                                                        
loans
 Commercial     268       0.90        126       0.42        924       3.22        334       1.34        825       3.60 
business
 Commercial     2,089     1.74        588       0.46        1,994     1.47        714       0.54        1,462     1.30 
real estate
 Commercial     5         1.67        (1)       (0.41)      11        0.56        (2)       (0.05)      (2)      (0.05)
construction
 Commercial     21        0.13        89        0.48        1,037     5.43        723       4.00        1,439     9.87 
land
Total
commercial      2,383     1.43        802       0.46        3,966     2.14        1,769     0.99        3,724     2.41 
loans
                                                                                                                  
Consumer loans                                                                                                    
 Home equity    1,346     1.42        1,343     1.44        1,125     1.17        2,580     2.71        2,264     2.57 
 Manufactured   1,019     1.45        899       1.29        778       1.12        666       0.97        1,467     2.13 
housing
 Marine         74        0.38        (19)      (0.11)      146       0.88        82        0.60        361       2.83 
 Other          170       1.64        295       2.51        269       2.22        428       3.48        469       3.90 
consumer
Total           2,609     1.34        2,518     1.31        2,318     1.20        3,756     1.98        4,561     2.51 
consumer loans
Total net       $ 6,063  0.98%        $ 6,333  0.99%        $ 6,981  1.07%        $ 6,673  1.04%        $ 9,493  1.60%
charge-offs
 
 *Represents an annualized rate

                                                                     
 
FIRST FINANCIAL HOLDINGS, INC.
NON-GAAP RECONCILIATION (Unaudited)
                                                                     
                    As of and for the Quarters Ended
(dollars in         March 31,   December    September   June 30,    March 31,
thousands, except   2013        31,         30,         2012        2012
per share data)                 2012        2012
Efficiency Ratio                                                     
Net interest income  $ 33,138    $ 35,089    $ 33,197    $ 31,713    $ 28,252 
(A)
Taxable equivalent   158         168         184         226         182 
adjustment (B)
Noninterest income   15,837      16,173      14,548      32,530      13,182 
(C)
(Loss) gain on       ---         (661)       ---         14,550      --- 
acquisition (D)
Net securities       (268)       (144)       189         3,398       (69)
(losses) gains (E)
FDIC true-up
liability release    1,321       ---         ---         ---         --- 
(F)
Noninterest expense  35,120      35,357      33,029      39,250      28,709 
(G)
FHLB prepayment
termination charge   ---         ---         ---         8,525       --- 
(H)
Efficiency Ratio:
(G-H)/(A+B+C-D-E-F) 73.04%      67.69%      69.19%      66.05%      68.87%
(non-GAAP)
                                                                     
Tangible Assets and
Tangible Common                                                      
Equity
Total assets         $           $           $           $           $
                    3,216,647   3,215,558   3,245,487   3,304,174   3,145,538 
Other intangible     (7,573)     (8,025)     (8,478)     (8,931)     (2,310)
assets
 Tangible assets     $           $           $           $           $
(non-GAAP)          3,209,074   3,207,533   3,237,009   3,295,243   3,143,228 
                                                                     
Total shareholders'  $ 304,689   $ 299,641   $ 292,500   $ 287,264   $ 278,043 
equity
Preferred stock      (65,000)    (65,000)    (65,000)    (65,000)    (65,000)
Other intangible     (7,573)     (8,025)     (8,478)     (8,931)     (2,310)
assets
 Tangible common     $ 232,116   $ 226,616   $ 219,022   $ 213,333   $ 210,733 
equity (non-GAAP)
                                                                     
Shares outstanding,
end of period        16,533      16,527      16,527      16,527      16,527 
(000s)
                                                                     
Tangible common
equity to tangible  7.23%       7.07%       6.77%       6.47%       6.70%
assets (non-GAAP)
Book value per       $ 14.50     $ 14.20     $ 13.77     $ 13.45     $ 12.89 
common share
Tangible book value
per common share     14.04       13.71       13.25       12.91       12.75 
(non-GAAP)
                                                                     
Pre-tax
Pre-provision                                                        
Earnings
Income before        $ 7,883     $ 11,744    $ 10,183    $ 20,296    $ 5,980 
income taxes
Provision for loan   5,972       4,161       4,533       4,697       6,745 
losses
 Pre-tax
pre-provision        $ 13,855    $ 15,905    $ 14,716    $ 24,993    $ 12,725 
earnings (non-GAAP)
                                                                     
Impact of Improved
Performance of Cape                                                  
Fear Loan Pool
Net interest income  $ 33,138    $ 35,089    $ 33,197    $ 31,713    $ 28,252 
Tax equivalent       158         168         184         226         182 
adjustment
Net interest income
on taxable           33,296      35,257      33,381      31,939      28,434 
equivalent basis
(A)
Effect of Cape Fear
incremental          (3,849)     (4,048)     (472)       ---         --- 
accretion
Net interest
income, adjusted     $ 29,447    $ 31,209    $ 32,909    $ 31,939    $ 28,434 
(B) (non-GAAP)
                                                                     
Average earning      $           $           $           $           $
assets (C)          2,978,227   2,994,982   3,061,432   3,142,597   2,967,614 
Net interest margin 4.51%       4.69%       4.35%       4.08%       3.84%
(A)/(C)^1
Net interest
margin, adjusted    3.99%       4.15%       4.29%       4.08%       3.84%
(B)/(C)
(non-GAAP)^1
 
^1 Represents an annualized rate; calculation is approximate due to differences
in industry standards for annualizing underlying average earning assets.

CONTACT: First Financial Holdings, Inc.
         Blaise B. Bettendorf
         Executive Vice President and Chief Financial Officer
         (843) 529-5931 or (843) 529-5456
         investorrelations@firstfinancialholdings.com
         bbettendorf@firstfinancialholdings.com
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