PrintPrintFor the 2009 fiscal year, which ended Sept. 30, First Financial reported earnings of $29.3 million, up from $22.6 million in fiscal 2008. The 12-month earnings included a $28.9 million gain this year from the acquisition of a failed bank in coastal North Carolina.
Staff Report
Published Oct. 28, 2009
First Financial Holdings Inc., the holding company for First Federal Savings and Loan Association of Charleston, reported a $1.3 million loss for the quarter that ended Sept. 30.
First Financial earned $6.3 million in the same quarter of 2008, which is the bank’s fourth quarter.
For the 2009 fiscal year, First Financial reported earnings of $29.3 million, up from $22.6 million in fiscal 2008.
President and CEO Thomas Hood said he was pleased with the bank’s performance given the current economy.
“Our core operating metrics remain strong and, during the fourth quarter of 2009, we successfully sold $65 million of our common stock in a public offering and completed the conversion of the systems of the former Cape Fear Bank,” Hood said.
In April, First Federal announced its acquisition of the failed Cape Fear Bank of Wilmington, N.C., from the Federal Deposit Insurance Corp. The North Carolina bank had assets valued at $413 million and liabilities valued at $384 million, Hood said, leaving First Financial with a net gain of $28.9 million.
That gain helped boost First Financial’s capital position, he said.
First Financial recognized loan-loss provisions of $21.3 million for the quarter ended Sept. 30, compared to $12.4 million for the prior quarter and $5.2 million for the fourth quarter of 2008.
“Key factors in (delinquent) residential loans are obviously unemployment, particularly in South Carolina, and significant delays in the foreclosure process itself,” Hood said. “Attorneys in South Carolina are just now starting to report some foreclosure proceedings after a very lengthy moratorium by the S.C. Supreme Court.”
Hood said the sizable backlog will hamper the bank’s efforts to reduce problem assets.
Problem assets, which include non-accrual loans, accruing loans more than 90 days past due and real estate owned, as a percentage of total assets were 2.92% as of Sept. 30. At the end of the same quarter last year, problem assets represented 0.84% of total assets. At the end of the third quarter of 2009, ended June 30, they represented 2.2%.
First Financial is using money from the U.S. Treasury Department’s Capital Purchase Program in part to help borrowers avoid foreclosures. The company said it is also is using the money to expand its loan and investment portfolios.
The company paid a dividend of $813,000 to the U.S. Treasury during the fourth quarter of fiscal 2009.
First Financial declared a regular quarterly cash dividend of 5 cents per share, payable Nov. 27 to stockholders of record as of Nov. 13.
“Our board of directors continues to carefully evaluate the level of our dividend,” Hood said. “We believe there is a critical need to preserve our strong capital base through these challenging economic times, and this conservative approach continues to be the most appropriate action at this time.”
First Federal operates 65 offices in the Charleston area, Horry, Georgetown, Florence and Beaufort counties in South Carolina and Brunswick, New Hanover and Pender counties in North Carolina.
First Financial also provides insurance and brokerage services through First Southeast Insurance Services, The Kimbrell Insurance Group and First Southeast Investor Services.
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