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  Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140425005119/en/  Multimedia Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50850928&lang=en  Contact:  First Financial Holdings, Inc. Media Contact: Donna Pullen, 803-765-4558 Analyst Contact: John C. Pollok, 803-765-4628  The story has been truncated, [TRUNCATED]  
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