UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period ended
June 30, 2003OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 0-17122
FIRST FINANCIAL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
57-0866076
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
34 Broad Street, Charleston, South Carolina
29401
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(843) 529-5933
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
YES X NO
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Class
Outstanding Shares at
Common Stock
July 31, 2003
$.01 Par Value
12,606,254
FIRST FINANCIAL HOLDINGS, INC.
INDEX
PART I--CONSOLIDATED FINANCIAL INFORMATION
PAGE NO.
Item
1.
Consolidated Financial Statements
Consolidated Statements of Financial Condition
1
at June 30, 2003 and September 30, 2002
Consolidated Statements of Income for the Three
2
Months Ended June 30, 2003 and 2002
Consolidated Statements of Income for the Nine
3
Months Ended June 30, 2003 and 2002
Consolidated Statements of Cash Flows for the
4
Nine Months Ended June 30, 2003 and 2002
Notes to Consolidated Financial Statements
5-10
2.
Management's Discussion and Analysis of Financial
10-25
Condition and Results of Operations
3.
Quantitative and Qualitative Disclosures About Market Risk
25
4.
Controls and Procedures
25
PART II - OTHER INFORMATION
Item
1.
Legal Proceedings
26
6.
Exhibits and Reports on Form 8-K
26-28
SIGNATURES
29
EXHIBIT 31 - CERTIFICATIONS 30-31
EXHIBIT 32 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND
32
CHIEF FINANCIAL OFFICER
SCHEDULES OMITTED
All schedules other than those indicated above are omitted because of the absence of the conditions under which they are required or because the information is included in the Financial Statements and related notes.
FIRST FINANCIAL HOLDINGS, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION June 30, September 30, 2003 2002 (Amounts in thousands) (Unaudited) ASSETS Cash and cash equivalents $ 95,339 $ 87,884 Investments available for sale, at fair value 14,198 7,285 Investment in capital stock of FHLB, at cost 28,450 29,750 Loans receivable, net of allowance of $15,130 and $15,824 1,772,785 1,884,378 Loans held for sale 38,862 40,450 Mortgage-backed securities available for sale, at fair value 232,356 133,568 Accrued interest receivable 10,027 11,242 Office properties and equipment, net 36,387 33,545 Real estate and other assets acquired in settlement of loans 4,074 2,913 Other assets 36,567 33,659 Total assets $ 2,269,045 $ 2,264,674
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposit accounts $ 1,462,924 $ 1,440,271 Advances from Federal Home Loan Bank 569,000 577,000 Other short-term borrowings 26,770 26,907 Advances by borrowers for taxes and insurance 4,194 5,633 Outstanding checks 18,476 22,447 Accounts payable and other liabilities 25,722 26,768 Total liabilities 2,107,086 2,099,026 Stockholders' equity: Serial preferred stock, authorized 3,000,000 shares--none issued Common stock, $.01 par value, authorized 24,000,000 shares, issued 15,834,541 and 15,733,398 shares at June 30, 2003 and September 30, 2002, respectively 158 157 Additional paid-in capital 40,311 38,656 Retained income, substantially restricted 171,656 158,680 Accumulated other comprehensive income, net of income taxes 1,281 2,226 Treasury stock at cost, 3,223,396 and 2,537,535 shares at June 30, 2003 and September 30, 2002, respectively (51,447) (34,071) Total stockholders' equity 161,959 165,648 Total liabilities and stockholders' equity $ 2,269,045 $ 2,264,674
The accompanying notes are an integral part of the statements.
1
FIRST FINANCIAL HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME Three Months Ended June 30, 2003 2002 (Amounts in thousands, except per share amounts) (Unaudited) INTEREST INCOME Interest on loans and mortgage-backed securities $ 32,629 $ 37,147 Interest and dividends on investments 344 493 Other 25 110 Total interest income 32,998 37,750 INTEREST EXPENSE Interest on deposits 6,595 9,444 Interest on borrowed money 6,836 7,745 Total interest expense 13,431 17,189 NET INTEREST INCOME 19,567 20,561 Provision for loan losses 1,450 1,472 Net interest income after provision for loan losses 18,117 19,089 OTHER INCOME Net gain on sale of loans 2,749 728 Net gain on sale of investment and mortgage-backed securities 523 303 Brokerage fees 432 579 Commissions on insurance 3,085 2,193 Other agency income 256 Service charges and fees on deposit accounts 2,680 2,348 Loan servicing operations, net (1,303) 400 Real estate operations, net (161) (100) Other 1,019 1,287 Total other income 9,280 7,738 NON-INTEREST EXPENSE Salaries and employee benefits 10,770 9,665 Occupancy costs 1,314 1,262 Marketing 549 487 Depreciation, amortization, rental and maintenance of equipment 1,276 1,336 FDIC insurance premiums 62 68 Other 3,327 2,945 Total non-interest expense 17,298 15,763 Income before income taxes 10,099 11,064 Income tax expense 3,614 3,987 NET INCOME $ 6,485 $ 7,077
NET INCOME PER COMMON SHARE $ 0.51 $ 0.53
NET INCOME PER COMMON SHARE DILUTED $ 0.50 $ 0.51
The accompanying notes are an integral part of the statements.
2
FIRST FINANCIAL HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME Nine Months Ended June 30, 2003 2002 (Amounts in thousands, except per share amounts) (Unaudited) INTEREST INCOME Interest on loans and mortgage-backed securities $ 101,485 $ 114,981 Interest and dividends on investments 1,167 1,640 Other 98 262 Total interest income 102,750 116,883 INTEREST EXPENSE Interest on deposits 21,811 31,535 Interest on borrowed money 21,297 23,305 Total interest expense 43,108 54,840 NET INTEREST INCOME 59,642 62,043 Provision for loan losses 4,585 4,488 Net interest income after provision for loan losses 55,057 57,555 OTHER INCOME Net gain on sale of loans 7,311 2,719 Net gain on sale of investment and mortgage-backed securities 1,709 328 Brokerage fees 1,456 1,617 Commissions on insurance 9,354 7,189 Other agency income 765 Service charges and fees on deposit accounts 7,863 6,908 Loan servicing operations, net (2,299) 1,383 Real estate operations, net (519) (417) Other 3,333 3,041 Total other income 28,973 22,768 NON-INTEREST EXPENSE Salaries and employee benefits 32,764 28,662 Occupancy costs 3,901 3,768 Marketing 1,349 1,297 Depreciation, amortization, rental and maintenance of equipment 3,981 3,820 FDIC insurance premiums 188 203