First Financial Holdings, Inc. Announces Second Quarter Fiscal 2011 Results and Declares Quarterly Cash Dividend

CHARLESTON, SC – April 28, 2011 – First Financial Holdings, Inc. (NASDAQ: FFCH) (“First Financial”), the holding company for First Federal Savings and Loan Association of Charleston (“First Federal”), announced a net loss of $(430) thousand for the second fiscal quarter or three months ended March 31, 2011, compared with net income of $1.2 million for the three months ended December 31, 2010 and a net loss of $(19.1) million for the three months ended March 31, 2010.

After the effect of the preferred stock dividend and related accretion, First Financial reported a net loss available to common shareholders of $(1.4) million for the three months ended March 31, 2011, compared with net income (loss) available to common shareholders of $210 thousand and $(20.0) million for the three months ended December 31, 2010 and March 31, 2010, respectively. Diluted net loss per common share was $(0.08) for the current quarter, compared with diluted net income (loss) per common share of $0.01 for the prior quarter and $(1.21) for the same quarter last year.

For the six months ended March 31, 2011, First Financial recorded net income of $737 thousand, compared with a net loss of $(23.6) million for the same period of fiscal 2010. After the effect of the preferred stock dividend and related accretion, the net loss available to common shareholders was $(1.2) million for the six months ended March 31, 2011, compared with $(25.5) million for the same period of fiscal 2010. Diluted net loss per common share was $(0.07) compared with $(1.54) for the same period of fiscal 2010.

“We are pleased to see some stabilization in our credit quality metrics. Our delinquent loans, criticized, and classified loan levels all declined from the prior quarter and our nonperforming loan levels are relatively unchanged,” commented R. Wayne Hall, president and chief executive officer. “First Federal continues to be well-capitalized with an increase in the total risk-based capital ratio over the prior quarter. While First Financial is not currently subject to risk-based capital calculations at the holding company level, on a pro-forma basis, combined total risk-based capital is in excess of 14% at March 31, 2011.”

Second Quarter Fiscal 2011 Highlights:

• Net interest margin remained strong for the current quarter at 3.83%, unchanged from the prior quarter ended December 31, 2010.
• Total loans at March 31, 2011 were $2.6 billion, essentially unchanged from December 31, 2010. Core deposits totaled $1.2 billion at March 31, 2011, an increase of $61.8 million or 5.6% over December 31, 2010. Time deposits at March 31, 2011 totaled $1.2 billion, a decrease of $126.6 million or 9.7% from December 31, 2010.
• The allowance for loan losses totaled $85.1 million at March 31, 2011 or 3.33% of total loans, compared with $88.3million or 3.42% of total loans at December 31, 2010. The provision for loan losses for the current quarter totaled$12.7 million, an increase of $2.2 million or 20.9% over the linked quarter. Net charge-offs totaled $15.9 million for the current quarter, an increase of $6.9 million over the linked quarter. Several of the large loans charged-off during the current quarter were considered impaired loans at December 31, 2010 and carried a specific allowance.
• Delinquent loans totaled $26.5 million at March 31, 2011 or 1.04% of total loans, compared with $37.2 million or 1.44% of total loans at December 31, 2010. Nonperforming loans at March 31, 2011 totaled $156.3 million or 6.10% of totalloans, essentially unchanged from December 31, 2010. Criticized and classified totaled $329.8 million at March 31, 2011, a decrease of $6.2 million or 1.8% from December 31, 2010.