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, 2002OR
[ ]
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
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, 2002
$.01 Par Value
13,364,561
FIRST FINANCIAL HOLDINGS, INC.
INDEX
PART I - FINANCIAL INFORMATION
PAGE NO.
Consolidated Statements of Financial Condition
1
at June 30, 2002 and September 30, 2001
Consolidated Statements of Income for the Three
2
Months Ended June 30, 2002 and 2001
Consolidated Statements of Income for the Nine
3
Months Ended June 30, 2002 and 2001
Consolidated Statements of Cash Flows for the
4
Nine months Ended June 30, 2002 and 2001
Notes to Consolidated Financial Statements
5-9
Management's Discussion and Analysis of Financial
10-22
Condition and Results of Operations
PART II - OTHER INFORMATION
23-25
SIGNATURES
26
CEO/CFO CERTIFICATION
27
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, 2002 2001 (Amounts in thousands) (Unaudited) ASSETS Cash and cash equivalents $ 96,668 $ 97,554 Investments available for sale, at fair value 9,345 6,259 Investment in capital stock of FHLB, at cost 33,250 33,150 Loans receivable, net of allowance of $16,179 and $15,943 1,892,105 1,905,333 Mortgage-backed securities available for sale, at fair value 156,236 208,153 Accrued interest receivable 11,788 13,535 Office properties and equipment, net 32,896 32,968 Real estate and other assets acquired in settlement of loans 3,922 3,337 Other assets 27,152 25,375 Total assets $ 2,263,362 $ 2,325,664
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposit accounts $ 1,411,895 $ 1,395,785 Advances from Federal Home Loan Bank 615,000 625,000 Securities sold under agreements to repurchase - 66,316 Other short-term borrowings 23,750 23,750 Advances by borrowers for taxes and insurance 4,177 5,896 Outstanding checks 16,230 17,454 Accounts payable and other liabilities 26,082 34,570 Total liabilities 2,097,134 2,168,771 Stockholders' equity: Serial preferred stock, authorized 3,000,000 shares--none issued Common stock, $.01 par value, authorized 24,000,000 shares, issued 15,655,003 and 15,427,872 shares at June 30, 2002 and September 30, 2001, respectively 156 154 Additional paid-in capital 36,861 34,015 Retained income, substantially restricted 154,188 139,643 Accumulated other comprehensive income 2,659 2,878 Treasury stock at cost, 2,316,722 and 2,032,009 shares at June 30, 2002 and September 30, 2001, respectively (27,636 ) (19,797 ) Total stockholders' equity 66,228 156,893 Total liabilities and stockholders' equity $ 2,263,362 $ 2,325,664
The accompanying notes are an integral part of the statements 1
FIRST FINANCIAL HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME Three Months Ended June 30, 2002 2001 (Amounts in thousands, except per share amounts) (Unaudited) INTEREST INCOME Interest on loans and mortgage-backed securities $ 37,147 $ 42,409 Interest and dividends on investments 493 791 Other 110 236 Total interest income 37,750 43,436 INTEREST EXPENSE Interest on deposits 9,444 14,353 Interest on borrowed money 7,745 10,797 Total interest expense 17,189 25,150 NET INTEREST INCOME 20,561 18,286 Provision for loan losses 1,472 1,350 Net interest income after provision for loan losses 19,089 16,936 OTHER INCOME Net gain on sale of loans 728 559 Net gain (loss) on sale of investment and mortgage-backed securities 303 (3 ) Brokerage fees 579 430 Commissions on insurance 2,193 1,309 Service charges and fees on deposit accounts 2,348 2,166 Loan servicing fees 400 489 Real estate operations, net (100 ) (74 ) Other 1,287 972 Total other income 7,738 5,848 NON-INTEREST EXPENSE Salaries and employee benefits 9,665 8,074 Occupancy costs 1,262 993 Marketing 487 402 Depreciation, amortization, rental and maintenance of equipment 1,261 1,130 FDIC insurance premiums 68 64 Other 3,020 2,971 Total non-interest expense 15,763 13,634 Income before income taxes 11,064 9,150 Income tax expense 3,987 3,228 NET INCOME $ 7,077 $ 5,922
NET INCOME PER COMMON SHARE $ 0.53 $ 0.44
NET INCOME PER COMMON SHARE DILUTED $ 0.51 $ 0.43
The accompanying notes are an integral part of the statements 2
FIRST FINANCIAL HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME Nine Months Ended June 30, 2002 2001 (Amounts in thousands, except per share amounts) (Unaudited) INTEREST INCOME Interest on loans and mortgage-backed securities $ 114,981 $ 127,731 Interest and dividends on investments 1,640 2,460 Other 262 836 Total interest income 116,883 131,027 INTEREST EXPENSE Interest on deposits 31,535 42,551 Interest on borrowed money 23,305 37,353 Total interest expense 54,840 79,904 NET INTEREST INCOME 62,043 51,123 Provision for loan losses 4,488 3,475 Net interest income after provision for loan losses 57,555 47,648 OTHER INCOME Net gain on sale of loans 2,719 1,202 Net gain on sale of investment and mortgage-backed securities 328 537 Brokerage fees 1,617 1,231 Commissions on insurance 7,189 3,036 Service charges and fees on deposit accounts 6,908 6,332 Loan servicing fees 1,383 1,520 Real estate operations, net (417 ) 1,057 Other 3,041 2,781 Total other income 22,768 17,696 NON-INTEREST EXPENSE Salaries and employee benefits 28,662 23,432 Occupancy costs 3,768 3,056 Marketing 1,297 1,134 Depreciation, amortization, rental and maintenance of equipment 3,595 3,354 FDIC insurance premiums 203 197 Other 9,545 8,533 Total non-interest expense 47,070 39,706 Income before income taxes 33,253 25,638 Income tax expense 11,864 9,051 NET INCOME $ 21,389