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

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

Business Wire

COLUMBIA, S.C. -- April 25, 2014

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 25^th 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 25^th by 2:00 p.m. ET until 9:00 a.m.
on May 12^th. 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 Bankalso
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            2014             2013             2013             2013             2013             % Change
equivalent)
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    849              (12        )     659              179              1,060          -19.9  %
losses (1)
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         25,749           21,188           18,858           18,705           15,823         62.7   %
income taxes
Provision for        8,832          7,204          6,804          6,173          5,174         70.7   %
income taxes
Net income            16,917           13,984           12,054           12,532           10,649         58.9   %
Preferred stock      1,073          812            542            --             --         
dividends
Net income
available to common $ 15,844        $ 13,172        $ 11,512        $ 12,532        $ 10,649        48.8   %
shareholders (GAAP)
                                                                                                         
Effective tax rate    34.30      %     34.00      %     36.08      %     33.00      %     32.70      %
                                                                                                         
Basic
weighted-average      23,873,178       23,825,636       21,893,528       16,790,167       16,787,487     42.2   %
common shares
Diluted
weighted-average      24,116,174       24,079,350       22,127,979       16,989,818       16,954,039     42.2   %
common shares
                                                                                                         
Earnings per common $ 0.66           $ 0.55           $ 0.53           $ 0.75           $ 0.63           4.8    %
share - Basic
Earnings per common   0.66             0.55             0.52             0.74             0.63           4.8    %
share - Diluted
                                                                                                         
Cash dividends
declared per common $ 0.19           $ 0.19           $ 0.19           $ 0.18           $ 0.18           5.6    %
share
Dividend payout       28.91      %     34.74      %     39.71      %     24.46      %     28.75      %   0.6    %
ratio (2)
                                                                                                         
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,     3,932          6,147          7,326          576            1,321         197.6  %
net of tax
Net operating
earnings (loss)       20,849           20,131           19,380           13,108           11,970         74.2   %
(non-GAAP)
Preferred stock      1,073          812            542            --             --         
dividends
Net operating
earnings (loss)
available to common $ 19,776        $ 19,319        $ 18,838        $ 13,108        $ 11,970        65.2   %
shareholders
(non-GAAP)
                                                                                                         
Operating earnings
(loss) per common   $ 0.83           $ 0.81           $ 0.86           $ 0.78           $ 0.71           16.9   %
share - Basic
Operating earnings
(loss) per common     0.82             0.80             0.85             0.77             0.71           15.5   %
share - Diluted
                                                                                                         
                                                                                                         First
                    AVERAGE for Quarter Ended                                                        Quarter
                    March 31,        December 31,     September 30,    June 30,         March 31,        2014 -
                                                                                                         2013
BALANCE SHEET       2014             2013             2013             2013             2013             % Change
HIGHLIGHTS
Loans held for sale $ 29,386         $ 35,673         $ 53,204         $ 40,040         $ 51,216         -42.6  %
Acquired non-credit   1,575,392        1,635,418        1,227,822        72,998           73,160         2053.4 %
impaired loans
Acquired credit
impaired loans, net
of allowance for      1,162,467        1,247,891        1,199,761        854,522          923,850        25.8   %
acquired loan
losses
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            83,010           105,554          116,849          114,724          139,172        -40.4  %
agreements
Total investment      801,263          699,592          656,658          527,926          553,214        44.8   %
securities
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   1,485,014        1,510,734        1,359,137        1,023,668        969,401        53.2   %
deposits
Interest-bearing      5,033,181        5,098,095        4,626,023        3,150,909        3,236,609      55.5   %
deposits
Total deposits        6,518,195        6,608,829        5,985,160        4,174,577        4,206,010      55.0   %
Federal funds
purchased and         273,636          229,382          251,551          297,025          319,602        -14.4  %
repurchase
agreements
Other borrowings      102,269          101,948          93,849           54,461           54,713         86.9   %
Shareholders'
common equity         931,961          914,335          790,554          517,141          511,392        82.2   %
(excludes preferred
stock)
Shareholders'         994,073          979,335          837,185          517,141          511,392        94.4   %
equity

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       2014             2013             2013             2013             2013             % Change
HIGHLIGHTS
Loans held for sale $ 57,200         $ 30,586         $ 52,467         $ 47,980         $ 50,449         13.4   %
Acquired non-credit   1,512,201        1,598,051        1,665,333        69,653           70,234         2053.1 %
impaired loans
Acquired credit       1,124,809        1,227,698        1,328,889        835,051          909,349        23.7   %
impaired loans
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            67,984           93,947           115,773          104,048          124,340        -45.3  %
agreements
Total investment      814,533          812,603          652,610          531,579          533,255        52.7   %
securities
Intangible assets     376,676          379,015          381,302          126,451          127,473        195.5  %
Allowance for
acquired credit       (11,046    )     (11,618    )     (12,260    )     (14,461    )     (15,605    )   -29.2  %
impaired loan
losses
Allowance for
non-acquired loan     (34,669    )     (34,331    )     (36,145    )     (38,625    )     (41,669    )   -16.8  %
losses (1)
Premises and          187,127          188,114          184,959          109,794          110,792        68.9   %
equipment
Total assets          7,990,975        7,931,498        8,028,441        5,043,078        5,141,929      55.4   %
Noninterest-bearing   1,581,157        1,487,798        1,481,791        1,046,537        995,214        58.9   %
deposits
Interest-bearing      5,049,496        5,067,699        5,181,315        3,136,432        3,224,142      56.6   %
deposits
Total deposits        6,630,653        6,555,497        6,663,106        4,182,969        4,219,356      57.1   %
Federal funds
purchased and         254,985          211,401          233,792          262,447          328,701        -22.4  %
repurchase
agreements
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         934,163          916,469          905,026          516,592          514,211        81.7   %
(excludes preferred
stock)
Shareholders'         934,163          981,469          970,026          516,592          514,211        81.7   %
equity
                                                                                                         
Common shares
issued and            24,118,243       24,104,124       24,066,545       17,032,061       17,017,904     41.7   %
outstanding
                                                                                                         
                                                                                                         First
                    ENDING Balance                                                                       Quarter
                    March 31,        December 31,     September 30,    June 30,         March 31,        2014 -
                                                                                                         2013
NONPERFORMING
ASSETS (ENDING      2014             2013             2013             2013             2013             % Change
BALANCE) (7)
Non-acquired
Non-acquired        $ 29,190         $ 31,333         $ 38,631         $ 40,854         $ 42,945         -32.0  %
nonaccrual loans
Restructured loans    8,156            10,690           10,837           11,689           13,636         -40.2  %
Non-acquired other
real estate owned     12,187           13,456           16,555           15,950           19,680         -38.1  %
("OREO")
Accruing loans past   96               258              122              198              121            -20.7  %
due 90 days or more
Other nonperforming  --             --             --             --             --         
assets
Total non-acquired
nonperforming        49,629         55,737         66,145         68,691         76,382        -35.0  %
assets
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       29,003           27,520           40,543           35,142           34,244         -15.3  %
agreements
OREO not covered
under FDIC loss       22,957           23,941           18,775           17,536           16,766         36.9   %
share agreements
Other nonperforming  1,032          943            718            --             26         
assets
Total acquired OREO
and other            52,992         52,404         60,036         52,678         51,036        3.8    %
nonperforming
assets
Total acquired
nonperforming        52,992         52,404         60,036         52,678         51,036        3.8    %
assets
Total nonperforming $ 102,621       $ 108,141       $ 126,181       $ 121,369       $ 127,418       -19.5  %
assets
                                                                                                         
Excluding Acquired
Assets
NPLs as a
percentage of        1.26       %    1.48       %    1.81       %    1.98       %    2.18       %
period end
non-acquired loans
Total nonperforming
assets as a
percentage of
total non-acquired
loans and            1.66       %    1.94       %    2.40       %    2.56       %    2.91       %
repossessed assets
(1) (4)
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        0.67       %    0.74       %    0.86       %    1.47       %    1.58       %
period end loans
Total nonperforming
assets as a
percentage of
total loans and
repossessed assets   1.81       %    1.88       %    2.16       %    3.32       %    3.47       %
(1) (4)
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     September    June 30,     March 31,    2014 -
                             31,          30,                                    2013
ALLOWANCE FOR                                                                    %
LOAN LOSSES     2014         2013         2013         2013         2013         Change
(1)
Non-acquired
Loans:
Balance at
beginning of    $ 34,331     $ 36,145     $ 38,625     $ 41,669     $ 44,378     -22.6 %
period
Loans charged     (901   )     (2,778 )     (3,815 )     (2,827 )     (4,148 )   -78.3 %
off
Overdrafts        (469   )     (389   )     (479   )     (393   )     (459   )   2.2   %
charged off
Loan              817          1,215        1,095        436          826        -1.1  %
recoveries
Overdraft        221        138        154        140        219       0.9   %
recoveries
Net               (332   )     (1,814 )     (3,045 )     (2,644 )     (3,562 )   -90.7 %
charge-offs
Provision for
loan losses
on               670        --         565        (400   )    853       -21.5 %
non-acquired
loans
Balance at
end of
period,         $ 34,669    $ 34,331    $ 36,145    $ 38,625    $ 41,669    -16.8 %
non-acquired
loans
                                                                                 
Allowance for
non-acquired
loan losses
as a
percentage of
non-acquired     1.16   %    1.20   %    1.32   %    1.45   %    1.60   %
loans (1)
Allowance for
non-acquired
loan losses
as a
percentage of
non-acquired     92.59  %    81.20  %    72.89  %    73.23  %    73.49  %
nonperforming
loans
Net charge-offs on
non-acquired loans as a
percentage of
average
non-acquired
loans            0.05   %    0.26   %    0.45   %    0.40   %    0.56   %
(annualized)
(1)
                                                                                 
DAY 2 VALUATION ALLOWANCE
ON ACQUIRED LOANS
Balance at
beginning of    $ 11,618     $ 12,260     $ 14,461     $ 15,605     $ 17,218
period
Provision for
loan losses
on acquired
loans:
Provision for
loan losses
before
benefit
attributable
to FDIC loss
share             304          73           (456   )     320          (855   )
agreements
Benefit
attributable
to FDIC loss     (125   )    (85    )    550        259        1,062  
share
agreements
Net provision
for loan
losses on        179        (12    )    94         579        207    
acquired
loans
Provision for
loan losses
recorded
through the
FDIC
loss share        125         85           (550   )     (259   )     (1,062 )
receivable
Reduction due
to loan          (876   )    (715   )    (1,745 )    (1,464 )    (758   )
removals (12)
Balance at
end of
period,
acquired        $ 11,046    $ 11,618    $ 12,260    $ 14,461    $ 15,605 
credit
impaired
loans

First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
                                                                              First
             ENDING Balance                                                  Quarter
             March 31,     December      September     June 30,      March 31,     2014 -
                           31,           30,                                       2013
LOAN
PORTFOLIO    2014          2013          2013          2013          2013          % Change
(ENDING
balance) (1)
Acquired
loans:
Acquired
covered
loans:
Commercial
non-owner
occupied
real estate:
Construction
and land     $ 37,757      $ 43,396      $ 50,582      $ 31,647      $ 36,941      2.2    %
development
Commercial
non-owner     50,814       53,525       62,985       42,945       47,594      6.8    %
occupied
Total
commercial
non-owner      88,571        96,921        113,567       74,592        84,535      4.8    %
occupied
real estate
Consumer
real estate:
Consumer
owner          37,111        38,946        41,379        39,005        41,879      -11.4  %
occupied
Home equity   34,627       35,884       37,943       20,857       21,370      62.0   %
loans
Total
consumer       71,738        74,830        79,322        59,862        63,249      13.4   %
real estate
Commercial
owner          78,861        88,722        93,309        41,401        43,395      81.7   %
occupied
real estate
Commercial
and            11,964        14,475        16,596        9,454         10,742      11.4   %
industrial
Other income
producing      29,471        31,739        37,543        34,941        37,366      -21.1  %
property
Consumer non  1,772        1,878        2,322        1,696        2,107       -15.9  %
real estate
Total
acquired       282,377       308,565       342,659       221,946       241,394     17.0   %
covered
loans
Acquired
non-covered
loans:
Commercial
non-owner
occupied
real estate:
Construction
and land       96,981        129,289       134,342       72,453        82,885      17.0   %
development
Commercial
non-owner     204,094      226,530      245,046      158,100      169,504     20.4   %
occupied
Total
commercial
non-owner      301,075       355,819       379,388       230,553       252,389     19.3   %
occupied
real estate
Consumer
real estate:
Consumer
owner          951,131       974,392       1,013,022     90,258        98,117      869.4  %
occupied
Home equity   324,686      335,241      349,517      70,903       75,039      332.7  %
loans
Total
consumer       1,275,817     1,309,633     1,362,539     161,161       173,156     636.8  %
real estate
Commercial
owner          200,370       211,030       230,849       124,312       132,851     50.8   %
occupied
real estate
Commercial
and            76,016        98,046        111,135       61,237        64,913      17.1   %
industrial
Other income
producing      160,498       171,544       183,996       97,747        106,019     51.4   %
property
Consumer non  340,857      371,112      383,656      7,748        8,861       3746.7 %
real estate
Total
acquired      2,354,633    2,517,184    2,651,563    682,758      738,189     219.0  %
non-covered
loans
Total
acquired       2,637,010     2,825,749     2,994,222     904,704       979,583     169.2  %
loans
Non-acquired
loans:
Commercial
non-owner
occupied
real estate:
Construction
and land       319,441       299,951       288,199       285,370       273,488     16.8   %
development
Commercial
non-owner     285,145      291,170      282,678      298,769      298,707     -4.5   %
occupied
Total
commercial
non-owner      604,586       591,121       570,877       584,139       572,195     5.7    %
occupied
real estate
Consumer
real estate:
Consumer
owner          595,652       548,170       498,734       460,434       443,134     34.4   %
occupied
Home equity   263,057      257,139      255,291      250,988      249,356     5.5    %
loans
Total
consumer       858,709       805,309       754,025       711,422       692,490     24.0   %
real estate
Commercial
owner          845,728       833,513       814,259       802,125       796,139     6.2    %
occupied
real estate
Commercial
and            333,574       321,824       301,845       294,580       291,308     14.5   %
industrial
Other income
producing      158,186       143,204       140,024       136,957       131,776     20.0   %
property
Consumer non   147,710       136,410       116,312       104,239       93,997      57.1   %
real estate
Other         31,465       33,835       43,900       32,133       26,393      19.2   %
Total
non-acquired  2,979,958    2,865,216    2,741,242    2,665,595    2,604,298   14.4   %
loans
Total loans
(net of      $ 5,616,968   $ 5,690,965   $ 5,735,464   $ 3,570,299   $ 3,583,881   56.7   %
unearned
income) (1)
                                                                                   
Loans held   $ 57,200      $ 30,586      $ 52,467      $ 47,980      $ 50,449      13.4   %
for sale

First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
                                                                  
                   Quarter Ended
                   March 31,    December     September    June 30,     March 31,
                                31,          30,
SELECTED RATIOS    2014         2013         2013         2013         2013
                                                                       
Return on average
assets             0.86%        0.70%        0.66%        0.99%        0.84%
(annualized)
                                                                       
Operating return
on average assets  1.06%        1.00%        1.07%        1.04%        0.95%
(annualized)
(non-GAAP) (3)
                                                                       
Return on average
common equity      6.89%        5.72%        5.78%        9.72%        8.45%
(annualized)
                                                                       
Return on average
equity             6.90%        5.67%        5.71%        9.72%        8.45%
(annualized)
                                                                       
Operating return
on average common
equity             8.61%        8.38%        9.45%        10.17%       9.49%
(annualized)
(non-GAAP) (3)
                                                                       
Operating return
on average equity  8.51%        8.16%        9.18%        10.17%       9.49%
(annualized)
(non-GAAP) (3)
                                                                       
Return on average
common tangible
equity             12.59%       10.90%       10.39%       13.48%       11.92%
(annualized)
(non-GAAP) (10)
                                                                       
Operating return
on average
tangible common    15.47%       15.46%       16.43%       14.07%       13.30%
equity
(annualized)
(non-GAAP) (10)
                                                                       
Return on average
tangible equity    12.03%       10.25%       9.88%        13.48%       11.92%
(annualized)
(non-GAAP) (10)
                                                                       
Net interest
margin (tax        4.99%        4.91%        5.11%        5.01%        4.94%
equivalent)
                                                                       
Efficiency ratio   73.84%       79.22%       78.74%       69.49%       72.37%
(tax equivalent)
                                                                       
Operating
efficiency ratio   64.06%       66.30%       64.27%       63.79%       64.47%
excluding OREO
expense
                                                                       
Book value per     $ 38.73      $ 40.72      $ 40.31      $ 30.33      $ 30.22
common share
                                                                       
Tangible common
equity per common  $ 23.11      $ 22.30      $ 21.76      $ 22.91      $ 22.73
share (non-GAAP)
(10)
                                                                       
Common shares
issued and         24,118,243   24,104,124   24,066,545   17,032,061   17,017,904
outstanding
                                                                       
Common             11.69%       11.55%       11.27%       10.24%       10.00%
equity-to-assets
                                                                       
Equity-to-assets   11.69%       12.37%       12.08%       10.24%       10.00%
                                                                       
Tangible common
equity-to-tangible 7.32%        7.12%        6.85%        7.94%        7.71%
assets (non-GAAP)
(10)
                                                                       
Tangible
equity-to-tangible 7.32%        7.98%        7.70%        7.94%        7.71%
assets (non-GAAP)
(10)
                                                                       
Tier 1 leverage    8.6%         9.3%         10.0%        9.2%         8.8%
(9)
                                                                       
Tier 1 risk-based  12.7%        13.5%        13.1%        13.6%        13.2%
capital (9)
                                                                       
Total risk-based   13.6%        14.4%        14.4%        14.8%        14.4%
capital (9)

First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
                                                                  
                   Quarter Ended
                   March 31,    December     September    June 30,     March 31,
                                31,          30,
RECONCILIATION OF  2014         2013         2013         2013         2013
NON-GAAP TO GAAP
                                                                       
Pre-tax,
Pre-provision
Operating Earnings
(6)
Net income (GAAP)  $ 16,917     $ 13,984     $ 12,054     $ 12,532     $ 10,649
Provision for loan   849          (12    )     659          179          1,060
losses (1)
Provision for       8,832      7,204      6,804      6,173      5,174  
income taxes
Pre-tax,
pre-provision        26,598       21,176       19,517       18,884       16,883
income
Securities gains     --           --           --           --           --
Merger and
branding related    5,985      9,314      10,397     860        1,963  
expense
Pre-tax,
pre-provision      $ 32,583    $ 30,490    $ 29,914    $ 19,744    $ 18,846 
operating earnings
(non-GAAP)
                                                                       
Operating Return
of Average Assets
(3)
Operating return
on average assets    1.06   %     1.00   %     1.07   %     1.04   %     0.95   %
(non-GAAP)
Effect to adjust
for securities       0.00   %     0.00   %     0.00   %     0.00   %     0.00   %
gains (losses)
Effect to adjust
for merger and      -0.20  %    -0.30  %    -0.41  %    -0.05  %    -0.11  %
branding related
expenses
Return on average   0.86   %    0.70   %    0.66   %    0.99   %    0.84   %
assets (GAAP)
                                                                       
Operating Return
of Average Common
Equity (3)
Operating return
on average equity    8.61   %     8.38   %     9.45   %     10.17  %     9.49   %
(non-GAAP)
Effect to adjust
for securities       0.00   %     0.00   %     0.00   %     0.00   %     0.00   %
gains (losses)
Effect to adjust
for merger and      -1.72  %    -2.66  %    -3.67  %    -0.45  %    -1.04  %
branding related
expenses
Return on average
common equity       6.89   %    5.72   %    5.78   %    9.72   %    8.45   %
(GAAP)
                                                                       
Operating Return
of Average Equity
(3)
Operating return
on average equity    8.51   %     8.16   %     9.18   %     10.17  %     9.49   %
(non-GAAP)
Effect to adjust
for securities       0.00   %     0.00   %     0.00   %     0.00   %     0.00   %
gains (losses)
Effect to adjust
for merger and      -1.61  %    -2.49  %    -3.47  %    -0.45  %    -1.04  %
branding related
expenses
Return on average   6.90   %    5.67   %    5.71   %    9.72   %    8.45   %
equity (GAAP)
                                                                       
Return on Average
Common Tangible
Equity
Return on average
common tangible      12.59  %     10.90  %     10.39  %     13.48  %     11.92  %
equity (non-GAAP)
Effect to adjust
for tangible        -5.70  %    -5.18  %    -4.61  %    -3.76  %    -3.47  %
assets
Return on average
common equity       6.89   %    5.72   %    5.78   %    9.72   %    8.45   %
(GAAP)
                                                                       
Operating Return on Average
Common Tangible Equity
Operating return
on average common    15.47  %     15.46  %     16.43  %     14.07  %     13.30  %
tangible equity
(non-GAAP)
Effect to adjust
for securities       0.00   %     0.00   %     0.00   %     0.00   %     0.00   %
gains (losses)
Effect to adjust
for merger and       -1.71  %     -2.67  %     -3.68  %     -0.45  %     -1.05  %
branding related
expenses
Effect to adjust
for tangible        -6.87  %    -7.07  %    -6.97  %    -3.90  %    -3.80  %
assets
Return on average
common equity       6.89   %    5.72   %    5.78   %    9.72   %    8.45   %
(GAAP)
                                                                       
Return on Average
Tangible Equity
(10)
Return on average
tangible equity      12.03  %     10.25  %     9.88   %     13.48  %     11.92  %
(non-GAAP)
Effect to adjust
for intangible      -5.13  %    -4.58  %    -4.17  %    -3.76  %    -3.47  %
assets
Return on average   6.90   %    5.67   %    5.71   %    9.72   %    8.45   %
equity (GAAP)
                                                                       
Operating
efficiency ratio
excluding OREO
expense
Operating
efficiency ratio     64.06  %     66.30  %     64.27  %     63.79  %     64.47  %
excluding OREO
expense
Effect to adjust
for OREO and loan    4.18   %     4.14   %     3.68   %     4.37   %     4.84   %
related expense
Effect to adjust
for merger and      5.71   %    8.75   %    11.05  %    1.33   %    3.06   %
branding expenses
Efficiency ratio    73.84  %    79.22  %    78.74  %    69.49  %    72.37  %
(Tax Equivalent)
                                                                       
Tangible Book
Value Per Common
Share (10)
Tangible book
value per common   $ 23.11      $ 22.30      $ 21.76      $ 22.91      $ 22.73
share (non-GAAP)
Effect to adjust
for intangible      15.62      18.42      18.54      7.42       7.49   
assets
Book value per
common share       $ 38.73     $ 40.72     $ 40.31     $ 30.33     $ 30.22  
(GAAP)
                                                                       
Tangible Common
Equity-to-Tangible
Assets
Tangible common
equity-to-tangible   7.32   %     7.12   %     6.85   %     7.94   %     7.71   %
assets (non-GAAP)
Effect to adjust
for tangible        4.37   %    4.43   %    4.42   %    2.30   %    2.29   %
assets
Common
equity-to-assets    11.69  %    11.55  %    11.27  %    10.24  %    10.00  %
(GAAP)
                                                                       
Tangible
Equity-to-Tangible
Assets (10)
Tangible
equity-to-tangible   7.32   %     7.98   %     7.70   %     7.94   %     7.71   %
assets (non-GAAP)
Effect to adjust
for intangible      4.37   %    4.39   %    4.38   %    2.30   %    2.29   %
assets
Equity-to-assets    11.69  %    12.37  %    12.08  %    10.24  %    10.00  %
(GAAP)

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   $ 365,026       $   460       0.51    %      311,202       $   418       0.54    %
time deposits
Investment
securities            652,118           3,881     2.41    %      394,917           2,161     2.22    %
(taxable)
Investment
securities            149,145           1,156     3.14    %      158,297           1,206     3.09    %
(tax-exempt)
Loans held for sale   29,386            320       4.42    %      51,216            382       3.02    %
Acquired loans, net
of allowance for      2,737,859         51,051    7.56    %      997,010           23,370    9.51    %
acquired loan
losses
Non-acquired loans   2,909,175       30,470    4.25    %     2,576,545       28,632    4.51    %
(1)
Total
interest-earning      6,842,709         87,338    5.18    %      4,489,187         56,169    5.07    %
assets
                                                                                             
Noninterest-Earning
Assets:
Cash and due from     204,657                                    120,005
banks
Other assets          947,613                                    552,147
Allowance for
non-acquired loan    (35,192   )                               (44,336   )
losses
Total
noninterest-earning  1,117,078                                627,816   
assets
Total Assets        $ 7,959,787                               $ 5,117,003 
                                                                                             
Interest-Bearing
Liabilities:
Transaction and
money market        $ 2,882,169     $   814       0.11    %    $ 1,855,556     $   605       0.13    %
accounts
Savings deposits      656,274           119       0.07    %      349,968           81        0.09    %
Certificates and      1,494,698         1,460     0.40    %      1,034,242         873       0.34    %
other time deposits
Federal funds
purchased and         273,636           101       0.15    %      319,602           136       0.17    %
repurchase
agreements
Other borrowings     102,269         1,502     5.96    %     54,713          673       4.99    %
Total
interest-bearing      5,409,046         3,996     0.30    %      3,614,081         2,368     0.27    %
liabilities
                                                                                             
Noninterest-Bearing
Liabilities:
Demand deposits       1,485,014                                  967,710
Other liabilities    71,654                                   23,820    
Total
noninterest-bearing   1,556,668                                  991,530
liabilities
("Non-IBL")
Shareholders'        994,073                                  511,392   
equity
Total Non-IBL and
shareholders'        2,550,741                                1,502,922 
equity
Total liabilities
and shareholders'   $ 7,959,787                               $ 5,117,003 
equity
                                                                              
Net interest income
and margin (NON-TAX                 $   83,342    4.94    %                    $   53,801    4.86    %
EQUIV.)
Net interest margin                               4.99    %                                  4.94    %
(TAX EQUIVALENT)

First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands)
                                                                            First
                Three Months Ended                                               Quarter
                March 31,    December     September    June 30,     March 31,    2014 -
                             31,          30,                                    2013
NONINTEREST                                                                      %
INCOME &        2014         2013         2013         2013         2013         Change
EXPENSE
Noninterest
income:
Service charges
on deposit      $ 8,988      $ 10,098     $ 8,966      $ 5,736      $ 5,761      56.0  %
accounts
Bankcard          7,124        7,252        6,493        4,245        3,893      83.0  %
services income
Mortgage          3,291        2,489        1,342        1,922        3,355      -1.9  %
banking income
Trust and
investment        4,543        4,316        3,593        2,438        2,314      96.3  %
services income
Amortization of
FDIC              (7,078 )     (7,429 )     (7,625 )     (7,310 )     (7,171 )   1.3   %
indemnification
asset
Other            3,811      3,957      2,388      1,454      1,371     178.0 %
Total
noninterest     $ 20,679    $ 20,683    $ 15,157    $ 8,485     $ 9,523     117.1 %
income
                                                                                 
Noninterest
expense:
Salaries and
employee        $ 39,093     $ 40,634     $ 34,464     $ 23,746     $ 23,252     68.1  %
benefits
Information
services          4,222        4,323        3,827        2,992        3,192      32.3  %
expense
OREO expense
and loan          4,269        4,375        3,461        2,820        3,102      37.6  %
related
Net occupancy     5,590        5,855        5,046        3,272        3,345      67.1  %
expense
Furniture and
equipment         3,754        3,824        3,523        2,266        2,572      46.0  %
expense
Merger and
branding          5,985        9,314        10,397       860          1,963      204.9 %
related expense
Business
development and   1,496        1,702        1,186        1,276        1,228      21.8  %
staff related
FDIC assessment
and other         1,576        1,193        1,521        1,096        1,224      28.8  %
regulatory
charges
Bankcard          2,299        2,283        1,752        1,236        1,164      97.5  %
expense
Amortization of   2,104        2,287        1,738        1,022        1,034      103.5 %
intangibles
Professional      1,341        1,509        1,377        760          691        94.1  %
fees
Advertising and   1,134        1,301        1,150        648          842        34.7  %
marketing
Other            4,560      5,296      5,977      2,891      2,832     61.0  %
Total
noninterest     $ 77,423    $ 83,896    $ 75,419    $ 44,885    $ 46,441    66.7  %
expense
                                                                                 
                                                                                 
                                                                                 
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   4,690           32,632          5,743
banks
Federal funds sold and
securities
purchased under agreements to   246,109       262,218       262,800   
resell
Total cash and cash             612,615       479,461       495,869   
equivalents
Investment securities:
Securities held to maturity
(fair value of $11,427,
$12,891, and $15,555,            10,891          12,426          14,598
respectively)
Securities available for sale,   793,124         786,791         510,852
at fair value
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     1,113,763       1,216,080       893,744
of allowance for loan losses
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,          1,512,201       1,598,051       70,234
respectively)
Non-acquired                     2,979,958       2,865,216       2,604,298
Less allowance for              (34,669   )    (34,331   )    (41,669   )
non-acquired loan losses
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   67,984          93,947          124,340
agreements
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,            64,147          64,918          70,690
respectively)
Core deposit and other           57,568          59,908          24,180
intangibles
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         254,985         211,401         328,701
repurchase
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   --              1               --
and outstanding, respectively
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,   60,296          60,260          42,545
respectively
Surplus                          698,079         762,354         329,636
Retained earnings                179,842         168,577         143,573     
Accumulated other               (4,054    )    (9,723    )    (1,543    )
comprehensive (loss)
Total shareholders' equity      934,163       981,469       514,211    
Total liabilities and          $ 7,990,975    $ 7,931,498    $ 5,141,929 
shareholders' equity

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

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Contact:

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

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