First Financial Holdings, Inc. Announces Increase in Loan Loss Provision for First Quarter

CHARLESTON, SC – January 8, 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”),  announced that it expects to record a provision for loan losses between $25 million and $26 million for the first quarter of fiscal 2010, which will result in a loss for this quarter.  This higher provision brings our allowance for loan loss reserve to approximately $73 million.  First quarter 2010 net charge-offs are expected to be between $20 million and $21 million.

This higher than historical provision results from asset quality downgrades to land loans and the acquisition and development portfolio.  This deterioration is the result of weakness in the economy and further decline in real estate values, said President and Chief Executive Officer A. Thomas Hood. We will continue to conduct an extensive review of our commercial real estate portfolio to implement loss mitigation strategies.  Additional resources have been allocated for the resolution of problem assets.  We believe loan loss provisions and charge-offs will remain elevated through fiscal 2010 due to the continued deterioration in the real estate sector and the weak economy.

The Company has evaluated the regulatory capital ratios of the Bank and as of December 31, 2009, the Bank will continue to meet all applicable regulatory capital requirements and it remains “well capitalized” under applicable regulations.

As previously announced, First Financial will release first quarter results on Wednesday, January 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.

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.