First Financial Holdings, Inc. Announces Increase in Second Quarter Provision for Loan Losses
April 8, 2010
CHARLESTON, SC – April 7, 2010 – First Financial Holdings, Inc. (“First Financial” or the “Company”) (NASDAQ GSM: FFCH), the holding company for First Federal Savings and Loan Association of Charleston (“First Federal”), today announced that it expects to record a provision for loan losses between $44 million and $46 million for the second quarter of fiscal 2010, which will result in a loss for this quarter. This higher provision brings our allowance for loan losses at the end of the quarter to approximately $82 million. Second quarter 2010 net charge-offs are expected to be between $36 million and $38 million.
Our ongoing review of our commercial loan portfolio has resulted in a significantly higher provision for loan losses this quarter, said President and Chief Executive Officer A. Thomas Hood. We have now completed our review of the land and acquisition and development loan portfolios and we have appropriately reserved or charged-off identified losses in those portfolios. We expect the review of other commercial real estate and business loans greater than $1 million to be completed by June 30, 2010. As stated last quarter, we believe loan loss provisions and charge-offs will remain elevated through fiscal 2010 because of the continued deterioration in the real estate sector and the weak economy.
The Company has evaluated the regulatory capital ratios of First Federal and as of March 31, 2010, First Federal will continue to meet all applicable regulatory capital requirements and will remain “well capitalized” under applicable regulations.
As previously announced, First Financial will release its second quarter results on Tuesday, April 27, 2010.
First Financial
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. http://www.firstfinancialholdings.com/index.asp
