First Financial Holdings, Inc. Announces Fourth Quarter and Fiscal 2009 Results and Quarterly Dividend Payment


CHARLESTON, S.C., Oct. 27, 2009 (GLOBE NEWSWIRE) -- First Financial Holdings, Inc. ("First Financial" or the "Company") (Nasdaq:FFCH), the holding company for First Federal Savings and Loan Association of Charleston ("First Federal" or the "Association"), today reported results for its fourth quarter and fiscal year ended September 30, 2009. The net income (loss) for the quarter ended September 30, 2009 was $(1.3) million compared to $6.3 million from the comparative quarter ended September 30, 2008. Basic and diluted earnings (loss) per share available to common shareholders were ($0.19) for the current quarter, compared to $0.54 per basic and diluted per common share for the quarter ended September 30, 2008. Net income for the twelve months ended September 30, 2009 totaled $29.3 million, compared with $22.6 million, for the twelve months ended September 30, 2008. Diluted earnings per common share for the twelve months ended September 30, 2009 was $2.24 compared with $1.94 for the twelve months ended September 30, 2008. Included in the results during this fiscal year was an after-tax extraordinary gain of $28.9 million related to the difference between the purchase price and the acquisition-date fair value of the assets purchased and liabilities assumed in the Federal Deposit Insurance Corporation ("FDIC") assisted acquisition of the former Cape Fear Bank in Wilmington, North Carolina.

President and Chief Executive Officer A. Thomas Hood commented, "We are very pleased with our performance given the impact of the current economic environment. Our core operating metrics remain strong and, during the fourth quarter of 2009, we successfully sold $65.0 million of our common stock in a public offering and completed the conversion of the systems of the former Cape Fear Bank. Additionally, in early October 2009, we opened two new in-store financial service centers in Lowes Foods stores in Wilmington, North Carolina bringing seven day-a-week banking services to that market. We continue to devote significant resources to the monitoring and early recognition of potential problems in our loan portfolio. Consumers in our markets are still experiencing high unemployment and lower home values. While our policy of proactively identifying and managing problem credits resulted in a higher level of non-performing loans as of September 30, 2009, we were encouraged by the improvement in our level of net loan charge-offs during the fourth quarter."

"Compared with the quarter ended June 30, 2009, the net interest margin decreased by 17 basis points from a net interest margin of 4.16% to 3.99% for the quarter ended September 30, 2009. Net interest income for the quarter ended September 30, 2009 was $34.1 million, decreasing from $35.5 million or 4.16% for the linked quarter ended June 30, 2009. Hood commented, "We anticipate the deposits assumed and the loans acquired from the former Cape Fear Bank to have a positive but lessening impact on our net interest margin through fiscal 2010. Lower funding costs also continue to have a positive impact on our net interest margin. Our focus remains on increasing our core deposits and developing long-term customer relationships across our entire footprint."

The Company recognized a provision for loan losses of $21.3 million for the quarter ended September 30, 2009 compared to $12.4 million for the quarter ended June 30, 2009, and $5.2 million for the quarter ended September 30, 2008. The increase in the provision on both a linked and comparative quarter basis is attributable to increased non-performing loans and an ongoing assessment of current economic conditions specific to the markets we serve. The Company increased its allowance for loan losses as a percent of total loans from 205 basis points during the quarter ended June 30, 2009 to 257 basis points during the quarter ended September 30, 2009. 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% at September 30, 2009 compared with 0.84% at September 30, 2008 and 2.20% at June 30, 2009. The Company's loan loss reserve coverage of non-performing loans was 85.0% at September 30, 2009 compared to 116.3% at September 30, 2008 and 82.0% at June 30, 2009. The Company continues to work with borrowers searching for alternatives to mortgage foreclosure.

Mortgage banking income was $2.7 million for the fourth quarter of fiscal 2009, an increase of $1.7 million or 171.0% for the linked quarter ended June 30, 2009 and an increase of $1.9 million or 225.5% for the comparative quarter ended September 30, 2008. This increase is attributed to the Company's strategy of having certain economic hedging strategies in place to protect the value of our capitalized mortgage servicing asset from interest rate risk.

During the quarter ended September 30, 2009, there was further deterioration in our bank trust preferred collateralized debt obligations ("CDOs") portfolio. As a result, the Company recognized a credit-related other than temporary impairment (OTTI) charge totaling $614 thousand on seven CDOs comprised of bank trust preferred securities and one private label collateralized mortgage obligation ("CMO"). Total CDOs comprised of bank trust preferreds is $5.6 million or 1.1% of our total investment portfolio.

Total non-interest revenues were $15.4 million for the fourth quarter of fiscal 2009 compared to $15.1 million for the quarter ended September 30, 2008. Total revenues, defined as net interest income plus total other income, excluding gains on sales of investments and gains on disposition of assets, increased to $49.4 million for the quarter ended September 30, 2009, an increase of $11.1 million, or 29.0%, from $38.3 million during the comparable quarter ended September 30, 2008.

Total non-interest expense increased by $6.7 million, or 28.1%, to $30.6 million for the quarter ended September 30, 2009 compared to $23.9 million for the quarter ended September 30, 2008. Salary and employee benefits costs and occupancy costs increased in the fourth quarter of fiscal 2009 as a result of the acquisition of the operations of the former Cape Fear Bank and American Pensions, Inc. The assets and trade name of American Pensions, Inc., one of South Carolina's largest retirement plan consulting, fiduciary and administration firms, were purchased on July 1, 2009.

Hood continued, "While current market conditions continue to present many challenges for all financial institutions, our Board of Directors, officers and employees are committed to finding the best financial solutions for our customers and the best results for our shareholders. We are very proud of our performance in fiscal 2009 and we welcome the new fiscal year and are committed to achieving our financial and operational goals for fiscal 2010."

The Company also announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.05 per share. The dividend is payable November 27, 2009, to stockholders of record as of November 13, 2009. Hood concluded, "Our board of directors continues to carefully evaluate the level of our dividend. 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."

As of September 30, 2009, First Financial's total assets were $3.5 billion, loans receivable totaled $2.6 billion and deposits were $2.3 billion. Stockholders' equity was $351.6 million and book value per common share totaled $18.03 at September 30, 2009. First Federal's capital ratio (i.e., equity divided by assets) was 7.92% at September 30, 2009, compared to 7.43% and 6.91% at June 30, 2009 and September 30, 2008, respectively. Tangible equity to assets was 7.67% at September 30, 2009, compared to 7.29% and 7.32% at June 30, 2009 and September 30, 2008, respectively. As of September 30, 2009, First Federal remained categorized "well capitalized" under regulatory standards.

As a participant in the Treasury's Capital Purchase Program, the Company continues to use this capital to help borrowers avoid foreclosures in our markets, and to expand our loan and investment portfolios. The Company paid a dividend of $813 thousand to the U.S. Treasury for its investment during the fourth quarter of fiscal 2009.

On September 29, 2009, the Company raised $65.0 million through a public offering by issuing 4,193,550 shares of common stock at a price of $15.50 per share. Subsequently, on October 9, the Company announced that the underwriters fully exercised their over-allotment option, resulting in the issuance of an additional 629,032 shares. Including the over-allotment option, the net proceeds to the Company after deducting underwriting discounts, commissions and estimated offering expenses are expected to be $69.8 million.

First Financial is the holding company for First Federal Savings and Loan Association of Charleston , which operates 65 offices located in the Charleston metropolitan area, Horry, Georgetown, Florence and Beaufort counties in South Carolina and Brunswick, New Hanover and Pender counties in coastal North Carolina offering banking, trust and pension administration services. The Company also provides insurance and brokerage services through First Southeast Insurance Services, The Kimbrell Insurance Group and First Southeast Investor Services.

NOTE: A. Thomas Hood, President and CEO of the Company, and R. Wayne Hall, Executive Vice President and CFO, will discuss these results in a conference call at 2:00 PM (EDT), October 27, 2009. The call can be accessed via a webcast available on First Financial's website at www.firstfinancialholdings.com.

Forward Looking Statements

Certain matters in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, including operating efficiencies, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. Management's ability to predict results or the effect of future plans or strategies is inherently uncertain. The Company's actual results, performance or achievements may differ materially from those suggested, expressed or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, general economic conditions nationally and in the States of North and South Carolina, interest rates, the North and South Carolina real estate markets, the demand for mortgage loans, the credit risk of lending activities, including changes in the level of and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we have acquired or may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto, competitive conditions between banks and non-bank financial services providers, regulatory changes and other risks detailed in the Company's reports filed with the Securities and Exchange Commission ("SEC"), including the Annual Report on Form 10-K for the fiscal year ended September 30, 2008. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on these statements.

Such forward-looking statements may include projections. Such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the SEC regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct. The Company does not undertake to update any forward-looking statement that may be made on behalf of the Company.

For additional information about First Financial, please visit our web site at www.firstfinancialholdings.com or contact Dorothy B. Wright, Vice President-Investor Relations and Corporate Secretary, (843) 529-5931.



                      FIRST FINANCIAL HOLDINGS, INC.
         Unaudited Condensed Consolidated Financial Highlights
                  (in thousands, except share data)

                        Three Months Ended         Twelve Months Ended
                 -------------------------------  --------------------
 Statements of 
  Income          09/30/09   09/30/08   06/30/09   09/30/09   09/30/08
                 ---------  ---------  ---------  ---------  ---------

 Interest income $  49,815  $  43,398  $  51,266  $ 188,796  $ 174,772
 Interest
  expense           15,764     19,243     15,727     67,114     83,408
                 ---------  ---------  ---------  ---------  ---------
  Net interest
   income           34,051     24,155     35,539    121,682     91,364
 Provision for
  loan losses      (21,281)    (5,218)   (12,367)   (66,883)   (16,939)
                 ---------  ---------  ---------  ---------  ---------
  Net interest
   income after
   provision        12,770     18,937     23,172     54,799     74,425
 Other income
  Net gain on
   sale of
   investments
   and mortgage-
   backed
   securities           --         --         --         --        750
  Brokerage fees       532        672        383      2,028      2,923
  Commissions on
   insurance         5,595      6,078      6,121     23,315     23,773
  Other agency
   income              323        274        414      1,351      1,057
  Impairment on
   investment
   securities         (614)      (486)      (377)    (3,992)      (486)
  Service charges
   and fees on
   deposit
   accounts          5,865      6,133      5,688     22,501     23,901
  Mortgage banking
   income            2,672        821        986      8,070      7,456
  Gains on
   disposition of
   assets               37        913         37        162      1,052
  Other                981        663       (281)       826      2,475
                 ---------  ---------  ---------  ---------  ---------
   Total other
   income           15,391     15,068     12,971     54,261     62,901
 Other expenses
  Salaries and
   employee
   benefits         18,227     14,697     15,640     64,666     65,271
  Occupancy costs    2,446      2,120      2,215      8,935      8,210
  Marketing            586        460        479      2,137      2,408
  Furniture and
   equipment
   expense           2,277      1,629      2,202      7,546      5,867
  Other              7,089      5,002      7,609     25,928     18,573
                 ---------  ---------  ---------  ---------  ---------
   Total other
    expenses        30,625     23,908     28,145    109,212    100,329
                 ---------  ---------  ---------  ---------  ---------

 Income (loss)
  before income
  taxes and
  extraordinary
  items             (2,464)    10,097      7,998       (152)    36,997
  Provision for
   income taxes     (1,198)     3,789      2,842       (615)    14,359
                 ---------  ---------  ---------  ---------  ---------
   Income (loss)
    before extra-
    ordinary items  (1,266)     6,308      5,156        463     22,638

 Extraordinary
  items
  Gain on acqui-
   sition, less
   income tax of
   $18,833              --         --     28,857     28,857         --
                 ---------  ---------  ---------  ---------  ---------
   Net income
   (loss)           (1,266)     6,308     34,013     29,320     22,638

 Preferred stock
  dividend             813         --        813      2,663         --
 Accretion on
  preferred
  stock discount       134         --        132        431         --
                 ---------  ---------  ---------  ---------  ----------
   Net income
   (loss) avail-
   able to common
   shareholders  $  (2,213) $   6,308  $  33,068  $  26,226  $  22,638
                 =========  =========  =========  =========  =========

 Earnings (loss)
  per share
  before extra-
  ordinary items:
  Basic          $   (0.11) $    0.54  $    0.44  $    0.04  $    1.94
  Diluted        $   (0.11) $    0.54  $    0.44  $    0.04  $    1.94
 Earnings (loss)
  per share net
  income:
  Basic          $   (0.11) $    0.54  $    2.91  $    2.50  $    1.94
  Diluted        $   (0.11) $    0.54  $    2.91  $    2.50  $    1.94
 Earnings (loss)
  per share avail
  able to common
  shareholders:
  Basic          $   (0.19) $    0.54  $    2.83  $    2.24  $    1.94
  Diluted        $   (0.19) $    0.54  $    2.83  $    2.24  $    1.94

 Average number
  shares
  outstanding       11,791     11,683     11,699     11,721     11,664
 Average number
  diluted shares
  outstanding       11,791     11,688     11,699     11,721     11,692

 Ratios:
  Return on
   average equity
   (1)               -1.57%     13.59%      7.16%      0.17%     12.16%
  Return on
   average assets
   1)                -0.14%      0.86%      0.57%      0.01%      0.79%
  Net interest
   margin             3.99%      3.48%      4.16%      3.79%      3.41%
  Total other
   expense /
   average assets     3.44%      3.24%      3.12%      3.26%      3.50%
  Efficiency
   ratio (2)         60.46%     61.36%     56.42%     59.62%     64.33%
  Net charge-
   offs / average
   loans,
   annualized         1.10%      0.39%      1.43%      1.04%      0.37%

(1) Calculated using income before extraordinary items.
(2) Excludes from income: gains / (losses) on sales of securities, net
 real estate operations, gains on disposition of assets, realized
 impairment on investments, VISA litigation, and extraordinary items.

Please Note: Certain prior period amounts have been reclassified to
conform to current period presentation.


                       FIRST FINANCIAL HOLDINGS, INC.
            Unaudited Condensed Consolidated Financial Highlights
                     (in thousands, except share data)


 Statements of Financial
  Condition                        09/30/09     09/30/08      06/30/09
                                 -----------  -----------  -----------

 Assets
  Cash and cash equivalents      $    78,070  $    62,949  $    92,097
  Investments                         82,298       60,969       85,024
  Mortgage-backed securities         478,980      351,110      522,355
  Loans receivable, net            2,593,269    2,324,537    2,609,498
  Loan held for sale                  25,603        8,731       63,311
  Office properties, net              81,021       78,796       81,136
  Real estate owned                   22,002        4,286       12,927
  Intangible assets                   37,961       36,241       35,779
  Mortgage servicing rights           11,166       12,550       10,703
  FDIC indemnification
   receivable, net                    62,754           --       61,541
  Other assets                        37,163       33,825       32,695
                                 -----------  -----------  -----------

 Total Assets                    $ 3,510,287  $ 2,973,994  $ 3,607,066
                                 ===========  ===========  ===========

 Liabilities and
  Stockholders' Equity
  Deposits                       $ 2,303,611  $ 1,851,102  $ 2,341,055
  Advances from FHLB                 492,751      818,000      492,880
  Other borrowings                   305,205       75,205      420,204
  Other liabilities                   57,071       46,209       59,898
                                 -----------  -----------  -----------

 Total Liabilities                 3,158,638    2,790,516    3,314,037
                                 -----------  -----------  -----------
 Stockholders' equity

  Stockholders' equity               451,279      302,832      394,211
  Treasury stock                    (103,563)    (103,387)    (103,563)
  Accumulated other
   comprehensive income (loss)         3,933      (15,967)       2,381
                                 -----------  -----------  -----------

 Total stockholders' equity          351,649      183,478      293,029
                                 -----------  -----------  -----------

 Total liabilities and
  stockholders' equity           $ 3,510,287  $ 2,973,994  $ 3,607,066
                                 ===========  ===========  ===========
 Stockholders' equity to
  total assets                         10.02%        6.17%        8.12%

 Common shares outstanding            15,897       11,692       11,699

 Book value per common share     $     18.03  $     15.69  $     19.49
 Tangible book value per
  common share                   $     15.64  $     12.59  $     16.43

 Credit quality -
  quarterly results
  Total reserves for loan losses $    68,473  $    23,990  $    54,499
  Loan loss reserves / loans            2.57%        1.02%        2.05%
  Reserves/non-performing loans        85.00%      116.27%       82.01%
  Provision for losses           $    21,281  $     5,218  $    12,367
  Net loan charge-offs           $     7,307  $     2,251  $     9,490

 Problem assets

  Non-accrual loans              $    80,432  $    20,557  $    66,300
  Accruing loans 90 days or
   more past due                         121           76          153
  REO through foreclosure             22,002        4,286       12,927
                                 -----------  -----------  -----------
   Total                         $   102,555  $    24,919  $    79,380
  As a percent of total assets          2.92%        0.84%        2.20%


                      First Financial Holdings, Inc.
                    As of the Quarter Ended (Unaudited)
                          (dollars in thousands)

 BALANCE
  SHEET      09/30/09    06/30/09    03/31/09    12/31/08    09/30/08
            ----------  ----------  ----------  ----------  ----------
 Assets
  Cash and
   invest-
   ments    $  160,368  $  177,121  $  118,555  $  119,919  $  123,918
  Loans re-
   ceivable,
   net       2,593,269   2,609,498   2,333,846   2,334,254   2,324,537
  Loans held
   for sale     25,603      63,311      48,319      11,804       8,731
  Mortgage
   -backed
   securities  478,980     522,355     538,402     403,797     351,110
  Office
   properties
   and equip.   81,021      81,136      81,751      82,322      78,796
  Real
   estate
   owned        22,002      12,927       6,312       5,346       4,286
  FDIC
   indemnif-
   ication,
   net          62,754      61,541          --          --          --
  Other
   assets       86,290      79,177      79,354      79,852      82,616
            ----------  ----------  ----------  ----------  ----------
   Total
    assets  $3,510,287  $3,607,066  $3,206,539  $3,037,294  $2,973,994
            ==========  ==========  ==========  ==========  ==========
 Liabilities
  Deposits  $2,303,611  $2,341,055  $1,995,057  $1,926,625  $1,851,102
  Advances-
   FHLB        492,751     492,880     609,000     746,000     818,000
  Other
   borrowed
   money       305,205     420,204     310,204     125,204      75,205
  Other
   liabil-
   ities        57,071      59,898      38,043      19,387      46,209
            ----------  ----------  ----------  ----------  ----------
   Total
    liabil-
    ities    3,158,638   3,314,037   2,952,304   2,817,216   2,790,516
            ----------  ----------  ----------  ----------  ----------
   Total
    stock-
    holders'
    equity     351,649     293,029     254,235     220,078     183,478
            ----------  ----------  ----------  ----------  ----------
 Total
  liabil-
  ities and
  stock-
  holders'
  equity    $3,510,287  $3,607,066  $3,206,539  $3,037,294  $2,973,994
            ==========  ==========  ==========  ==========  ==========

 Total
  shares o/s    15,897      11,699      11,699      11,697      11,692
 Book value
  per share $    18.03  $    19.49  $    16.18  $    13.26  $    15.69
 Equity
  /assets       10.02%       8.12%       7.93%       7.25%       6.17%

 AVERAGE
  BALANCES
 Total
  assets    $3,558,677  $3,613,406  $3,121,916  $3,005,644  $2,949,011
 Earning
  assets     3,382,326   3,427,813   3,004,582   2,867,614   2,763,247
 Gross Loans 2,662,870   2,661,990   2,418,595   2,368,767   2,314,352
 Costing
  liabil-
  ities      3,262,178   3,232,640   2,950,628   2,807,944   2,730,439
 Deposits    2,419,451   2,168,056   2,031,280   1,931,978   1,875,748
 Equity        322,339     288,061     237,157     201,778     185,728


 BALANCE SHEET           06/30/08    03/31/08    12/31/07    09/30/07
                        ----------  ----------  ----------  ----------
 Assets
  Cash and investments  $  134,495  $  142,360  $  137,844  $  132,961
  Loans receivable, net  2,263,965   2,218,027   2,184,611   2,134,458
  Loans held for sale        4,519      14,031      10,361       6,311
  Mortgage-backed
   securities              353,257     370,848     345,397     297,011
  Office properties
   and equip.               77,732      76,766      74,850      74,361
  Real estate owned          5,442       4,310       2,748       4,841
  FDIC indemnification,
   net                          --          --          --          --
  Other assets              84,618      62,162      61,896      61,425
                        ----------  ----------  ----------  ----------
   Total assets         $2,924,028  $2,888,504  $2,817,707  $2,711,368
                        ==========  ==========  ==========  ==========
 Liabilities
  Deposits              $1,865,261  $1,875,099  $1,806,585  $1,854,051
  Advances-FHLB            747,000     719,000     708,000     554,000
  Other borrowed money      69,204      52,204      52,206      52,207
  Other liabilities         54,585      55,609      63,650      65,432
                        ----------  ----------  ----------  ----------
   Total liabilities     2,736,050   2,701,912   2,630,441   2,525,690
                        ----------  ----------  ----------  ----------
   Total stockholders'
    equity                 187,978     186,592     187,266     185,678
                        ----------  ----------  ----------  ----------
 Total liabilities and
  stockholders' equity  $2,924,028  $2,888,504  $2,817,707  $2,711,368
                        ==========  ==========  ==========  ==========

 Total shares o/s           11,674      11,663      11,657      11,635
 Book value per share   $    16.10  $    16.00  $    16.07  $    15.96
 Equity/assets               6.43%       6.46%       6.65%       6.85%

 AVERAGE BALANCES
  Total assets          $2,906,266  $2,853,106  $2,764,539  $2,691,152
  Earning assets         2,714,252   2,655,387   2,584,426   2,476,732
  Gross Loans            2,269,463   2,227,139   2,189,044   2,142,475
  Costing liabilities    2,671,260   2,612,019   2,523,927   2,432,008
  Deposits               1,884,688   1,841,855   1,841,414   1,874,849
  Equity                   187,302     186,961     186,506     187,237


                            First Financial Holdings, Inc.
                               (dollars in thousands)

                             Quarter Ended (Unaudited)
            ----------------------------------------------------------
            09/30/09  06/30/09  03/31/09  12/31/08  09/30/08  06/30/08
            --------  --------  --------  --------  --------  --------
 STATEMENT
  OF
  OPERATIONS

 Total
  interest
  income    $ 49,815  $ 51,266  $ 43,731  $ 43,984  $ 43,398  $ 43,219
 Total
  interest
  expense     15,764    15,727    16,770    18,853    19,243    19,209
            --------  --------  --------  --------  --------  --------
  Net
   interest
   income     34,051    35,539    26,961    25,131    24,155    24,010
  Provision
   for loan
   losses    (21,281)  (12,367)  (12,765)  (20,471)   (5,218)   (4,907)
            --------  --------  --------  --------  --------  --------
  Net int.
   inc.
   after
   provision  12,770    23,172    14,196     4,660    18,937    19,103
            --------  --------  --------  --------  --------  --------
 Other
  income
  Gain on
   investment
   securities                                                        4
  Brokerage
   fees          532       383       632       480       672       665
  Commissions
   on
   insurance   5,595     6,121     6,656     4,942     6,078     7,126
  Other
   agency
   income        323       414       310       303       274       294
  Impairment
   on
   investment
   securities   (614)     (377)     (857)   (2,144)     (486)
  Svc. chgs/
   fees-dep.
   accts       5,865     5,688     5,280     5,669     6,133     5,911
  Mortgage
   banking
   income      2,672       986     2,652     1,760       821     1,826
  Gains
   (losses)
   on
   dispo-
   sition of
   properties     37        37        36        52       913        43
  Other          981      (281)      (69)      197       663       375
            --------  --------  --------  --------  --------  --------
 Total other
  income      15,391    12,971    14,640    11,259    15,068    16,244
            --------  --------  --------  --------  --------  --------
 Other
  expenses
  Salaries &
   employee
   benefits   18,227    15,640    13,636    17,162    14,697    16,603
  Occupancy
   costs       2,446     2,215     2,129     2,145     2,120     2,037
  Marketing      586       479       422       650       460       685
  Furniture
   and
   equipment
   expense     2,277     2,202     1,572     1,684     1,629     1,438
  Other        7,089     7,609     6,086     4,955     5,002     4,809
            --------  --------  --------  --------  --------  --------
 Total other
  expenses    30,625    28,145    23,845    26,596    23,908    25,572
            --------  --------  --------  --------  --------  --------
 Income
  (loss)
  before
  taxes       (2,464)    7,998     4,991   (10,677)   10,097     9,775
 Provision
  for income
  taxes       (1,198)    2,842     1,872    (4,130)    3,789     3,873
            --------  --------  --------  --------  --------  --------
 Income
  before
  extra-
  ordinary
  items       (1,266)    5,156     3,119    (6,547) $  6,308  $  5,902
            ========  ========  ========  ========  ========  ========
 Extra-
  ordinary
  items
  Gain on
   acqui-
   sition,
   less
   income
   tax of
   $18,833              28,857
 Net Income   (1,266)   34,013     3,119    (6,547)    6,308     5,902
  Preferred
   stock
   dividend      813       813       813       225
  Accretion
   on
   preferred
   stock
   discount      134       132       130        36
            --------  --------  --------  --------  --------  --------
 Net Income
  (loss)
  available
  to common
  share-
  holders   $ (2,213) $ 33,068  $  2,176  $ (6,808) $  6,308  $  5,902
            ========  ========  ========  ========  ========  ========

 Note: Certain prior period amounts have been reclassified to conform
       to current period presentation.

 Average
  shares o/s,
  basic       11,791    11,699    11,699    11,694    11,683    11,668
 Average
  shares o/s,
  diluted     11,791    11,699    11,699    11,694    11,688    11,679
 Earnings
  per share
  before
  extra-
  ordinary
  items
  -basic    $  (0.11) $   0.44  $   0.27  $  (0.58) $   0.54  $   0.51
 Earnings
  per share
  before
  extra-
  ordinary
  items
  -diluted  $  (0.11) $   0.44  $   0.27  $  (0.58) $   0.54  $   0.51
 Earnings
  per share
  Net Income
  -basic    $  (0.11) $   2.91  $   0.27  $  (0.58) $   0.54  $   0.51
 Earnings
  per share
  Net Income
  -diluted  $  (0.11) $   2.91  $   0.27  $  (0.58) $   0.54  $   0.51
 Earnings
  per share
  Available
  to common
  share-
  holders
  - basic   $  (0.19) $   2.83  $   0.19  $  (0.58) $   0.54  $   0.51
 Earnings
  per share
  Available
  to common
  share-
  holders
  - diluted $  (0.19) $   2.83  $   0.19  $  (0.58) $   0.54  $   0.51
 Dividends
  paid per
  share,
  author-
  ized      $   0.05  $   0.05  $   0.05  $  0.255  $  0.255  $  0.255

              Quarter Ended (Unaudited)            Fiscal Year
            ----------------------------  ----------------------------
            03/31/08  12/31/07  09/30/07  09/30/09  09/30/08  09/30/07
            --------  --------  --------  --------  --------  --------
 STATEMENT
  OF
  OPERATIONS
 Total
  interest
  income    $ 43,801  $ 44,355  $ 42,916  $188,796  $174,772  $168,000
 Total
  interest
  expense     21,660    23,295    22,225    67,114    83,408    85,173
            --------  --------  --------  --------  --------  --------
  Net
   interest
   income     22,141    21,060    20,691   121,682    91,364    82,827
  Provision
   for loan
   losses     (3,567)   (3,248)   (1,850)  (66,883)  (16,939)   (5,164)
            --------  --------  --------  --------  --------  --------
  Net int.
   inc.
   after
   provision  18,574    17,812    18,841    54,799    74,425    77,663
            --------  --------  --------  --------  --------  --------
 Other
  income
  Gain on
   investment
   securities    645       100                  --       750       266
  Brokerage
   fees          906       680       665     2,028     2,923     2,551
  Commissions
   on
   insurance   6,532     4,037     4,883    23,315    23,773    20,865
  Other
   agency
   income        239       250       288     1,351     1,057     1,181
  Impairment
   on
   investment
   securities                               (3,992)     (486)
  Svc. chgs/
   fees-dep.
   accts       5,780     6,077     5,818    22,501    23,901    21,566
  Mortgage
   banking
   income      2,961     1,849       922     8,070     7,456     4,255
  Gains
   (losses)
   on
   dispo-
   sition of
   properties     59        36        40       162     1,052       230
  Other          738       700       775       826     2,475     2,370
            --------  --------  --------  --------  --------  --------
 Total other
  income      17,860    13,729    13,391    54,261    62,901    53,284
            --------  --------  --------  --------  --------  --------
 Other
  expenses
  Salaries &
   employee
   benefits   15,965    18,007    14,167    64,666    65,271    58,647
  Occupancy
   costs       2,001     2,053     1,828     8,935     8,210     6,709
  Marketing      570       694       522     2,137     2,408     2,262
  Furniture
   and
   equipment
   expense     1,374     1,426     1,516     7,546     5,867     5,404
  Other        4,211     4,549     4,804    25,928    18,573    17,478
            --------  --------  --------  -------- ---------  --------
 Total other
  expenses    24,121    26,729    22,837   109,212   100,329    90,500
            --------  --------  --------  --------  --------  --------
 Income
  (loss)
  before
  taxes       12,313     4,812     9,395      (152)   36,997    40,447
 Provision
  for income
  taxes        4,783     1,915     4,204      (615)   14,359    15,375
            --------  --------  --------  --------  --------  --------
 Income
  before
  extra-
  ordinary
  items     $  7,530  $  2,897  $  5,191  $    463  $ 22,638  $ 25,072
            ========  ========  ========  ========  ========  ========
 Extra-
  ordinary
  items
  Gain on
   acqui-
   sition,
   less
   income
   tax of
   $18,833                                  28,857
 Net Income    7,530     2,897     5,191    29,320    22,638    25,072
  Preferred
   stock
   dividend                                  2,663
  Accretion
   on
   preferred
   stock
   discount                                    441
            --------  --------  --------  --------  --------  --------
 Net Income
  (loss)
  available
  to common
  share-
  holders   $  7,530  $  2,897  $  5,191  $ 26,216  $ 22,638  $ 25,072
            ========  ========  ========  ========  ========  ========

 Note: Certain prior period amounts have been reclassified to conform
       to current period presentation.

 Average
  shares o/s,
  basic       11,659    11,646    11,741    11,721    11,664    11,929
 Average
  shares o/s,
  diluted     11,675    11,727    11,842    11,721    11,692    12,089
 Earnings
  per share
  before
  extra-
  ordinary
  items
  -basic    $   0.65  $   0.25  $   0.44  $   0.04  $   1.94  $   2.10
 Earnings
  per share
  before
  extra-
  ordinary
  items
  -diluted  $   0.64  $   0.25  $   0.44  $   0.04  $   1.94  $   2.07
 Earnings
  per share
  Net Income
  -basic    $   0.65  $   0.25  $   0.44  $   2.50  $   1.94  $   2.10
 Earnings
  per share
  Net Income
  -diluted  $   0.64  $   0.25  $   0.44  $   2.50  $   1.94  $   2.07
 Earnings
  per share
  Available
  to common
  share-
  holders
  - basic   $   0.65  $   0.25  $   0.44  $   2.24  $   1.94  $   2.10
 Earnings
  per share
  Available
  to common
  share-
  holders
  - diluted $   0.64  $   0.25  $   0.44  $   2.24  $   1.94  $   2.07
 Dividends
  paid per
  share,
  author-
  ized      $  0.255  $  0.255  $   0.25  $   0.41  $   1.02  $   1.00


                          First Financial Holdings, Inc.
                             (dollars in thousands)

                            Quarter Ended (unaudited)
            ----------------------------------------------------------
             09/30/09    06/30/09    03/31/09    12/31/08    09/30/08
            ----------  ----------  ----------  ----------  ----------
 OTHER RATIOS
  Return on
   Average
   Assets       -0.14%       0.57%       0.40%      -0.87%       0.86%
  Return on
   Average
   Equity       -1.57%       7.16%       5.26%     -12.98%      13.59%
  Average
   yield on
   earning
   assets        5.84%       6.00%       5.90%       6.08%       6.24%
  Average
   cost of
   paying
   liabil-
   ities         1.90%       1.94%       2.29%       2.64%       2.80%
  Gross
   spread        3.94%       4.06%       3.61%       3.44%       3.44%
  Net
   interest
   margin        3.99%       4.16%       3.64%       3.48%       3.48%
  Operating
   exp./avg.
   assets        3.44%       3.12%       3.06%       3.54%       3.24%
  Efficiency
   ratio        60.46%      56.42%      55.74%      68.20%      61.36%

 Note:  Average yields, costs and margins for prior periods adjusted
        to actual days

 COMPOSITION
  OF GROSS
  LOAN
  PORTFOLIO
  Mortgage
   Loans
   (1-4
   Family)  $  949,518  $  929,706  $  882,511  $  882,857  $  886,488
  Constr-
   uction
   Loans
   (1-4
   Family)      41,133      56,788      56,438      67,980      70,396
  Commercial
   Real
   Estate      435,298     342,349     322,663     314,516     307,903
  Commercial
   Constr-
   uction       53,219      47,445      41,490      39,380      40,827
  Commercial
   Business
   Loans        96,559     196,307      93,024      95,638      89,764
  Land -
   Resident-
   ial         169,367     187,797     143,329     145,757     146,694
  Land -
   Commer-
   cial        130,763     118,940     107,774     106,956     101,168
  Home
   Equity
   Lines of
   Credit      394,075     394,960     356,281     344,526     325,354
  Mobile
   Home
   Loans       244,214     238,549     232,515     227,698     223,476
  Credit
   Cards        17,483      16,949      16,128      16,790      16,125
  Marine        76,748      77,819      77,836      79,901      83,464
  Other
   Consumer
   Loans        53,365      56,388      51,347      53,783      56,869
            ----------  ----------  ----------  ----------  ----------
             2,661,742   2,663,997   2,381,336   2,375,782   2,348,528
 Less:
  Allowance
   for Loan
   Losses       68,473      54,499      47,490      41,528      23,990
            ----------  ----------  ----------  ----------  ----------

   Total    $2,593,269  $2,609,498  $2,333,846  $2,334,254  $2,324,537
            ==========  ==========  ==========  ==========  ==========

 Loans Held
  for Sale  $   25,603  $   63,311  $   48,319  $   11,804  $    8,731
            ==========  ==========  ==========  ==========  ==========

 Note: The Composition of Gross Loans has been changed to collateral
       type consistent with 10Qs as filed with the SEC.

 COMPOSITION
  OF
  DEPOSITS
  Checking  $  527,795  $  543,232  $  500,750  $  461,179  $  474,301
  Passbook     154,342     145,541     137,853     126,261     129,466
  Money
   Market      344,220     341,209     296,427     303,866     345,327
            ----------  ----------  ----------  ----------  ----------
  Core
   Deposits  1,026,357   1,029,982     935,030     891,306     949,094
  Time
   Deposits  1,277,254   1,311,073   1,060,027   1,035,318     902,008
            ----------  ----------  ----------  ----------  ----------
  TOTAL
   DEPOSITS $2,303,611  $2,341,055  $1,995,057  $1,926,624  $1,851,102
            ==========  ==========  ==========  ==========  ==========

 ASSET
  QUALITY
  Non-
   accrual
   loans    $   80,432  $   66,300  $   54,769  $   35,070  $   20,557
  Loans 90
   days or
   more past
   due             121         153          86         116          76
  REO thru
   fore-
   closure      22,002      12,927       6,312       5,346       4,286
            ----------  ----------  ----------  ----------  ----------
            $  102,555  $   79,380  $   61,167  $   40,532  $   24,919
            ==========  ==========  ==========  ==========  ==========
 LOAN AND
  REO LOSS
  RESERVES
  Total
   reserves
   for loan
   losses   $   68,473  $   54,499  $   47,490  $   41,528  $   23,990
  Loan loss
   reserves/
   loans         2.57%       2.05%       1.99%       1.74%       1.02%
  Provision
   for
   losses       21,281      12,367      12,765      20,471       5,218
  Net loan
   charge-
   offs          7,307       9,490       6,803       2,933       2,251
  Net charge
   -offs/avg
   gross
   loans         0.27%       0.36%       0.28%       0.12%       0.10%
  Annualized
   net
   charge
   -offs/avg
   gross
   loans         1.10%       1.43%       1.13%       0.49%       0.39%

                                  Quarter Ended (unaudited)
                        ----------------------------------------------
                         06/30/08    03/31/08    12/31/07    09/30/07
                        ----------  ----------  ----------  ----------
 OTHER RATIOS
  Return on Average
   Assets                    0.81%       1.06%       0.42%       0.77%
  Return on Average
   Equity                   12.60%      16.11%       6.21%      11.09%
  Average yield on
   earning assets            6.40%       6.63%       6.81%       6.89%
  Average cost of paying
   liabilities               2.89%       3.34%       3.67%       3.65%
  Gross spread               3.51%       3.29%       3.14%       3.24%
  Net interest margin        3.56%       3.35%       3.23%       3.31%
  Operating exp./avg.
   assets                    3.54%       3.37%       3.86%       3.48%
  Efficiency ratio          63.47%      61.39%      71.10%      66.77%

 Note:  Average yields, costs and margins for prior periods adjusted
        to actual days

 COMPOSITION OF GROSS
  LOAN PORTFOLIO
  Mortgage Loans
   (1-4 Family)         $  874,216  $  871,774  $  870,122  $  896,404
  Construction Loans
   (1-4 Family)             73,064      75,590      76,169      50,035
  Commercial Real Estate   291,712     286,316     278,948     253,621
  Commercial
   Construction             36,791      31,142      27,274      25,614
  Commercial Business
   Loans                    90,070      85,797      83,831      82,843
  Land - Residential       145,213     141,355     137,270     137,393
  Land - Commercial         98,182      94,241      91,964      80,432
  Home Equity Lines
   of Credit               301,184     284,696     273,399     267,736
  Mobile Home Loans        218,312     211,657     206,909     200,967
  Credit Cards              15,824      15,638      16,198      14,775
  Marine                    83,964      81,170      81,466      83,182
  Other Consumer Loans      56,499      56,561      57,753      56,892
                        ----------  ----------  ----------  ----------
                         2,285,031   2,235,937   2,201,303   2,149,894
 Less:
  Allowance for
   Loan Losses              21,066      17,910      16,692      15,436
                        ----------  ----------  ----------  ----------

   Total                $2,263,965  $2,218,027  $2,184,611  $2,134,458
                        ==========  ==========  ==========  ==========

 Loans Held for Sale    $    4,519  $   14,031  $   10,361  $    6,311
                        ==========  ==========  ==========  ==========

 Note: The Composition of Gross Loans has been changed to collateral
       type consistent with 10Qs as filed with the SEC.

 COMPOSITION OF DEPOSITS
  Checking              $  488,595  $  483,472  $  459,457  $  456,045
  Passbook                 133,414     130,863     127,694     133,201
  Money Market             372,617     379,380     364,639     381,040
                        ----------  ----------  ----------  ----------
  Core Deposits            994,626     993,715     951,790     970,286
  Time Deposits            870,635     881,384     854,795     883,765
                        ----------  ----------  ----------  ----------
  TOTAL DEPOSITS        $1,865,261  $1,875,099  $1,806,585  $1,854,051
                        ==========  ==========  ==========  ==========

 ASSET QUALITY
  Non-accrual loans     $   16,562  $   12,800  $   10,133  $    6,087
  Loans 90 days or more
   past due                     79          99          68          49
  REO thru foreclosure       5,442       4,310       2,748       1,513
                        ----------  ----------  ----------  ----------
                        $   22,083  $   17,209  $   12,949  $    7,649
                        ==========  ==========  ==========  ==========
 LOAN AND REO
  LOSS RESERVES
  Total reserves for
   loan losses          $   21,023  $   17,901  $   16,692  $   15,428
  Loan loss reserves/
   loans                     0.92%       0.80%       0.76%       0.72%
  Provision for losses       4,907       3,567       3,248       1,850
  Net loan charge-offs       1,785       2,358       1,983       1,610
  Net charge-offs/avg
   gross loans               0.08%       0.11%       0.09%       0.08%
  Annualized net
   charge-offs/avg
   gross loans               0.32%       0.43%       0.36%       0.30%

                                                Fiscal Year
                                    ----------------------------------
                                      09/30/09    09/30/08     09/30/07

                                    ----------  ----------  ----------
 OTHER RATIOS
  Return on Average Assets               0.01%       0.79%       0.94%
  Return on Average Equity               0.17%      12.16%      13.99%
  Average yield on earning assets        5.90%       6.53%       6.82%
  Average cost of paying liabilities     2.21%       3.17%       3.53%
  Gross spread                           3.69%       3.36%       3.29%
  Net interest margin                    3.79%       3.41%       3.36%
  Operating exp./avg. assets             3.26%       3.50%       3.38%
  Efficiency ratio                      59.62%      64.33%      67.16%

 Note:  Average yields, costs and margins for prior periods adjusted
        to actual days


                      First Financial Holdings, Inc.
                          (dollars in thousands)

                                                     Quarter Ended
                                                      (unaudited)
                                                   -------------------
                                                   09/30/09   06/30/09
                                                   --------   --------

 COMPOSITION OF LOAN LOSSES (NET CHARGE OFFS)
  Mortgage Loans (1-4 Family)                      $    943   $    232
  Construction Loans (1-4 Family)                       569      2,005
  Commercial Real Estate                                166         35
  Commercial Construction                                --         --
  Commercial Business Loans                             654        946
  Land - Residential                                    955      2,282
  Land - Commercial                                     546      1,313
  Home Equity Lines of Credit                         1,549      1,153
  Mobile Home Loans                                     866        609
  Credit Cards                                          228        214
  Marine Loans                                          377        383
  Other Consumer Loans                                  454        318
                                                   --------   --------
                                                   $  7,307   $  9,490
                                                   ========   ========

                                                   -------------------
                                                   09/30/09   06/30/09
                                                   --------   --------

 COMPOSITION OF DELINQUENT LOANS
  Mortgage Loans (1-4 Family)                      $ 33,423   $ 34,520
  Construction Loans (1-4 Family)                     5,110      7,785
  Commercial Real Estate                             11,045      6,076
  Commercial Construction                             2,284      2,265
  Commercial Business Loans                           1,264      1,922
  Land - Residential                                 24,830     16,199
  Land - Commercial                                  22,850     13,747
  Home Equity Lines of Credit                         7,697      9,748
  Mobile Home Loans                                   5,411      5,200
  Credit Cards                                          224        377
  Marine Loans                                          892      1,161
  Other Consumer Loans                                  935        829
                                                   --------   --------
                                                   $115,965   $ 99,829
                                                   ========   ========

                                                          Rate
                                                   -------------------
                                                   09/30/09  06/30/09
                                                   --------  --------

 % OF DELINQUENT LOANS TO GROSS LOAN BALANCE
  Mortgage Loans (1-4 Family)                          3.52%      3.71%
  Construction Loans (1-4 Family)                     12.42%     13.71%
  Commercial Real Estate                               2.54%      1.77%
  Commercial Construction                              4.29%      4.77%
  Commercial Business Loans                            1.31%      0.98%
  Land - Residential                                  14.66%      8.63%
  Land - Commercial                                   17.47%     11.56%
  Home Equity Lines of Credit                          1.95%      2.47%
  Mobile Home Loans                                    2.22%      2.18%
  Credit Cards                                         1.28%      2.22%
  Marine Loans                                         1.16%      1.49%
  Other Consumer Loans                                 1.75%      1.47%
                                                   --------   --------
                                                       4.36%      3.75%
                                                   ========   ========


            

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