First Financial Holdings, Inc. Announces Expansion of its Hilton Head Franchise Through the Acquisition of Branches
June 27, 2011
CHARLESTON, SC – June 27, 2011 – First Financial Holdings, Inc. (Nasdaq: FFCH) announced that its wholly-owned subsidiary, First Federal Savings and Loan Association of Charleston (“First Federal”), has signed a purchase and assumption agreement with Liberty Savings Bank, FSB (“Liberty”) to acquire the deposits and select loans associated with Liberty’s five bank branches located in Hilton Head, South Carolina. The deposits associated with these branches totaled approximately $109.5 million as of March 31, 2011. Additionally, as part of this transaction First Federal will purchase approximately $27 million in loans.
The purchase of these offices increases First Federal’s deposit base in an important market, which is consistent with one of our strategic objectives to expand our presence in markets where we operate, said R. Wayne Hall, chief executive officer and president. First Federal is currently ranked 13th in market share for Beaufort County and will move to the 7th position following this transaction, based on the FDIC 2010 deposit rankings.
First Federal currently has three offices in the Hilton Head market. This transaction will result in synergies from the consolidation of three offices and the addition of two new locations to First Federal’s footprint.
As of March 31, 2011, the assumed deposits consisted of approximately 80% transaction and savings accounts with the balance in retail time deposits. The cost associated with these deposits is approximately 50 basis points. No brokered deposits will be acquired. The loans to be purchased consist entirely of in-market, performing loans that were selected after an extensive credit review. The acquired loan portfolio includes approximately 48% home equity loans, with the balance primarily in residential mortgages and other consumer loans.
Closing of this transaction is expected to occur at the end of the third calendar quarter or early in the fourth quarter of 2011 and is subject to customary regulatory application processes and approvals.
About First Financial
First Financial Holdings, Inc. (First Financial) (Nasdaq: FFCH) is a Charleston, South Carolina thrift holding company with $3.3 billion in total assets as of March 31, 2011. The company’s primary subsidiary, First Federal Savings and Loan Association, founded in 1934, provides premier financial services and integrated financial solutions, including personal, business, and wealth management. First Financial serves individuals and businesses throughout coastal South Carolina, as well as the Florence, Columbia, and upstate regions of South Carolina and Wilmington, North Carolina. In addition to First Federal, First Financial subsidiaries include: Kimbrell Insurance Group, Inc., a managing general insurance agency; First Southeast 401(k) Fiduciaries, Inc., a registered investment advisor; and First Southeast Investor Services, Inc., a registered broker-dealer. First Federal is the largest financial institution headquartered in the Charleston, South Carolina metropolitan area and the third largest financial institution headquartered in South Carolina, based on asset size. Additional information about First Financial is available at www.firstfinancialholdings.com.
