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, 2000

OR

 

[  ]	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, 2000
$.01 Par Value	13,325,703

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FIRST FINANCIAL HOLDINGS, INC.
INDEX

PART I - FINANCIAL INFORMATION			PAGE NO.
	Consolidated Statements of Financial Condition		1
		at June 30, 2000 and September 30, 1999
	Consolidated Statements of Income for the Three		2
		Months Ended June 30, 2000 and 1999
	Consolidated Statements of Income for the Nine		3
		Months Ended June 30, 2000 and 1999
	Consolidated Statements of Cash Flows for the		4
		Nine months Ended June 30, 2000 and 1999
	Notes to Consolidated Financial Statements		5-6
	Management's Discussion and Analysis of Results		7-15
		of Operations and Financial Condition
PART II - OTHER INFORMATION			16-17
SIGNATURES			18

 

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.

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The accompanying notes are an integral part of the statements.

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The accompanying notes are an integral part of the statements.

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The accompanying notes are an integral part of the statements.

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The accompanying notes are an integral part of the statements.

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FIRST FINANCIAL HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)

A.  BASIS OF PRESENTATION AND ACCOUNTING POLICIES

The unaudited consolidated financial statements include the accounts of First Financial Holdings, Inc, ("First Financial", or the "Company") and its wholly-owned thrift subsidiaries, First Federal Savings and Loan Association of Charleston ("First Federal") and Peoples Federal Savings and Loan Association of Conway ("Peoples Federal") (together, the "Associations") and First Southeast Investor Services, Inc. All significant intercompany items related to the consolidated subsidiaries have been eliminated.

The significant accounting policies followed by First Financial for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. The unaudited consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q. The information contained in the footnotes included in First Financial's latest annual report on Form 10-K should be referred to in connection with the reading of these unaudited interim consolidated financial statements. Certain fiscal 1999 amounts have been reclassified to conform with the statement presentations for fiscal 2000.

The results of operations for the nine months ended June 30, 2000 are not necessarily indicative of the results of operations that may be expected in future periods. This report may contain certain forward-looking statements with respect to financial conditions, results of operations and business of First Financial. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, timing of certain business initiatives of the Company, the Company's interest rate risk position, Year 2000 initiatives and future regulatory actions of the Office of Thrift Supervision and the Federal Deposit Insurance Corporation. It is important to note that the Company's actual results may differ materially and adversely from those discussed in forward-looking statements.

B. EARNINGS PER SHARE

Basic and diluted earnings per share ("EPS") have been computed based upon net income as presented in the accompanying statements of income divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below:

 

C.  COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) is the change in the Corporation's equity during the period from transactions and other events and circumstances from non-owner sources. Total comprehensive income is comprised of net income and other comprehensive loss and for the nine months ended June 30, 2000 and 1999 amounted to $13,592 and $10,533, respectively.

The Corporation's "other comprehensive loss" for the nine months ended June 30, 2000 and 1999 and "accumulated other comprehensive loss" as of June 30, 2000 and 1999 are comprised solely of unrealized gains and losses on certain investments in debt and equity securities.

Other comprehensive loss for the nine months ended June 30, 2000 and 1999 follows (in thousands):

D.  NATURE OF OPERATIONS

First Financial is a multiple savings and loan holding company headquartered in Charleston, South Carolina. First Financial conducts its operations principally in South Carolina with lending functions also in North Carolina. The thrift subsidiaries, First Federal and Peoples Federal, provide a wide range of traditional banking services and also offer trust and insurance services through subsidiaries. The Company has a total of 40 offices in South Carolina located in the Charleston Metropolitan area and Horry, Georgetown, Florence and Beaufort counties and a loan origination office in coastal Brunswick County, North Carolina.

5. MERGERS AND ACQUISITIONS

On June 16, 2000, First Financial completed the acquisition of certain assets of Associated Insurors, Inc., a Myrtle Beach-based independent insurance agency. Intangible assets approximating $2.0 million were recorded in the transaction and will be amortized over fifteen years. This acquisition is not material to the financial condition or net earnings of First Financial and proforma information is not deemed necessary.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

Net income for the quarter ended June 30, 2000 improved 3.2% to $5.1 million from net income of $4.9 million in the comparable quarter in 1999. Earnings per common share increased to $.38 for the current quarter compared to $.37 in the June 1999 quarter. On a diluted basis, earnings per common share increased to $.38 from $.36 in the comparable period.

In the first nine months of 2000, First Financial earned $14.8 million compared with $14.2 million in the first nine months of 1999. Year-to-date earnings per common share and diluted earnings per common share improved to $1.11 and $1.09, respectively, compared with $1.06 and $1.03 in 1999.

On June 16, 2000, the Company completed its purchase of the assets of Associated Insurors, Inc., of Myrtle Beach, South Carolina. The premium volume on an annual basis of Associated totals approximately $11 million compared with $13 million in the company's existing insurance agency operations.

BALANCE SHEET ANALYSIS

Consolidated assets of the Company totaled approximately $2.3 billion at June 30, 2000. During the nine months ended June 30, 2000 assets increased $185 million, or 11.9% on an annualized basis.

Cash, Investment Securities and Mortgage-backed Securities

Cash, deposits in transit and interest-bearing deposits totaled $70.0 million at June 30, 2000. Investment balances declined in the current nine months to $5.6 million principally as a result of maturities. Investment in capital stock of the Federal Home Loan Bank increased $8.8 million in the nine months ended June 30, 2000. The Company increased its balances in mortgage-backed securities to $233.9 million, growing the portfolio by $52.7 million principally due to $85.3 million in securitizations of single family mortgage loans to mortgage-backed securities.

Loans Receivable

Loans receivable, including loans held for sale, totaled $1.8 billion at June 30, 2000, increasing $106.5 million from September 30, 1999. The principal use of the Company's funds is the origination of mortgage and other loans. The Company originated $291 million (net of refinances) in mortgage loans, $153 million in consumer loans and $63 million in commercial business loans during the nine months ending June 30, 2000. The Company also originated or purchased $16.8 million in loans through its regional correspondent originators. After securitizing $85.3 million of mortgage loans during the quarter ended June 30, 2000, growth in net loans receivable approximated 8.1% on an annualized basis during the nine months. Due to higher market interest rates, the Company originated more portfolio loans and less agency-qualifying fixed-rate loans which are generally sold into the secondary market. Sales of mortgage loans totaled $35.1 million in the first three quarters of fiscal 2000.

The following table summarizes the composition of the Company's gross loan portfolio (amounts in thousands):

The Company continues to emphasize the origination of consumer loans and small business loans. Outstanding commitments to originate mortgage loans and to fund the undisbursed portion of construction loans amounted to $72.5 million at June 30, 2000. Unused lines of credit on equity loans, consumer loans, credit cards and commercial loans totaled $209.6 million as of June 30, 2000.

The Company originates the majority of its loans in its primary market area located in the coastal region of South Carolina. In an effort to expand mortgage lending operations and improve earning asset growth the Company began originating mortgage loans in other markets in 1995. The Company utilizes its existing mortgage loan products and programs in establishing correspondent relationships with other lenders.

Asset Quality

The following table summarizes the Company's problem assets for the periods indicated (amounts in thousands):

Allowance for Loan Losses

The allowance for loan losses represents a reserve for probable losses existing in the loan portfolio. The adequacy of the allowance for loan losses is evaluated at least quarterly based, among other factors, on a continuous review of the Company's loan portfolio, with particular emphasis on adversely classified loans.

Following is a summary of the reserve for loan losses for the nine months ended June 30, 2000 and June 30, 1999 (amounts in thousands).

Net charge-offs totaled $1.4 million in the current nine months compared to $602 thousand in the comparable nine months in fiscal 1999. Consumer net charge-offs increased to $1.1 million compared with $741 thousand in the prior period, principally as a result of higher charge-offs from manufactured housing loans. Annualized net charge-offs as a percentage of average net loans increased to .10% for the nine months ended June 30, 2000 from .05% in the nine months ended June 30, 1999.

The Company's impaired loans totaled $4.2 million at June 30, 2000, $4.5 million at September 30, 1999 and $4.4 million at June 30, 1999.

Deposits and Borrowings

First Financial's deposit composition at the indicated dates is as follows (amounts in thousands):

Deposits increased $18.1 million during the nine months ended June 30, 2000, principally as a result of growth in checking accounts. A substantial portion of the growth in assets during the first nine months of fiscal 2000 was funded through increases in Federal Home Loan Bank of Atlanta advances, which increased $179.0 million during the nine months ended June 30, 2000. This source of funds is usually at a higher average cost than deposit funding; however, competition for deposit funding has strengthened with aggressive marketing being deployed by many financial institutions.

Stockholders' Equity

Stockholders' equity increased $7.5 million during the nine months of fiscal 2000 to total $133.4 million at June 30, 2000. The Company's capital ratio, total capital to total assets, was 5.91% at June 30, 2000, compared to 6.08% at September 30, 1999. During the nine months, the Company increased its dividend to stockholders to $.42 compared with $.36 per share in the first nine months of fiscal 1999. During the first nine months of fiscal 2000 the Company also repurchased 78,500 shares of its common stock for $1.1 million under its 500,000 stock repurchase program initiated in February 2000.

Regulatory Capital

Under current Office of Thrift Supervision ("OTS") regulations, savings associations must satisfy three minimum capital requirements: core capital, tangible capital and risk-based capital. Savings associations must meet all of the standards in order to comply with the capital requirements. At June 30, 2000, both subsidiaries were categorized as "well capitalized" under the Prompt Corrective Action regulations adopted by the OTS pursuant to the Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA"). To remain in this status, the Associations must maintain core and risk-based capital ratios of at least 5.0% and 10.0%, respectively.

The following table summarizes the capital requirements for First Federal and Peoples Federal as well as their capital positions at June 30, 2000:

For a complete discussion of capital issues, refer to "Capital Requirements" and "Limitations on Capital Distributions" in the Company's 10-K for the fiscal year ending September 30, 1999.

LIQUIDITY AND ASSET AND LIABILITY MANAGEMENT

Liquidity

The Associations are subject to federal regulations which require the maintenance of a daily average balance of liquid assets equal to 4.00% of net withdrawable savings and borrowings payable in one year. The liquidity ratios of the Associations, based on revised regulations issued by the Office of Thrift Supervision in November 1997, exceed the required levels.

The Associations' primary sources of funds consist of retail and commercial deposits, borrowings from the FHLB, principal repayments on loans and mortgage-backed securities, securities sold under agreements to repurchase and the sale of loans. Each of the Association's sources of liquidity is subject to various uncertainties beyond the control of the Associations. As a measure of protection, the Associations have back-up sources of funds available, including excess FHLB borrowing capacity and excess liquidity in securities available for sale.

During the current nine months the Company experienced a net cash outflow from investing activities of $181.8 million, consisting principally of loans originated and purchased for investment. Included in investing activities was $8.3 million in net purchases of office properties and equipment. During the nine-months ended June 30, 2000, the Company had three branch offices under construction and also made additional investments in branch automation and communication systems, document imaging software and hardware, and internet banking systems. The Company experienced cash inflows of $20.3 million from operating activities and $171.4 million from financing activities. Financing activities consisted principally of $179 million in FHLB advances and $18.1 million in increased deposit account balances offset partially by a $19.6 million decline in other borrowings and $5.6 million in common stock dividends.

Parent Company Liquidity

As a holding company, First Financial conducts its business through its subsidiaries. Unlike the Associations, First Financial is not subject to any regulatory liquidity requirements. Potential sources for First Financial's payment of principal and interest on its borrowings and for its stock repurchase program include (i) dividends from First Federal and Peoples Federal; (ii) payments from existing cash reserves and sales of marketable securities; (iii) interest on its investment securities; and (iv) advances on a bank line of credit. As of June 30, 2000, First Financial had cash reserves and existing marketable securities of $761 thousand compared with $1.6 million at September 30, 1999.

First Federal's and Peoples Federal's ability to pay dividends and make other capital contributions to First Financial is restricted by regulation and may require regulatory approval. First Federal's and Peoples Federal's ability to make distributions may also depend on each institution's ability to meet minimum regulatory capital requirements in effect during the period. For a complete discussion of capital distribution regulations, refer to "Limitations on Capital Distributions" in the Company's 10-K for the fiscal year ending September 30, 1999.

Asset/Liability Management

The Company's Asset and Liability Committees establish policies and monitor results to control interest rate sensitivity. Although the Company utilizes measures such as static gap, which is simply the measurement of the difference between interest-sensitive assets and interest-sensitive liabilities repricing for a particular time period, just as important a process is the evaluation of how particular assets and liabilities are impacted by changes in interest rates or selected indices as they reprice. Asset/liability modeling is performed by the Company to assess varying interest rate and balance mix assumptions. These projections enable the Company to adjust its strategies to lessen the impact of significant interest rate fluctuations.

The following table is a summary of First Financial's one year gap at June 30, 2000 (amounts in thousands):

The Company's one year gap as a percent of total assets changed from (31.25)% to (25.43)% during the current nine months. The respective ratios and dollars repricing as shown in the above table do not take into effect prepayments to mortgage, consumer and other loans and mortgage-backed securities.

A negative gap indicates that cumulative interest-sensitive liabilities exceed cumulative interest-sensitive assets and suggests that net interest income would decline if market interest rates increased. A positive gap would suggest the reverse. This relationship is not always ensured due to the repricing attributes of both interest-sensitive assets and interest-sensitive liabilities.

COMPARISON OF OPERATING RESULTS
QUARTERS ENDING JUNE 30, 2000 AND 1999

Net Interest Income

First Financial's net interest income for the three months ending June 30, 2000 was $15.9 million compared with $15.5 million for the comparable quarter in fiscal 1999. The gross interest margin declined from 3.03% in the prior quarter to 2.75% in the current quarter. The net yield on earning assets also declined to 3.00% from 3.25% in the prior year's quarter. Beginning in June of 1999, the Federal Reserve Open Market Committee has raised short-term interest rates in six stages totaling one hundred and seventy-five basis points. Because of the short-term nature of the Company's liability funding, the average cost of interest-bearing liabilities increased 61 basis points when comparing the two periods. The average yield on interest-earning assets increased from 7.45% in the quarter ended June 30, 1999 to 7.78% in the current quarter, or 33 basis points, indicating the Company's lag in repricing of interest-earning assets compared to the repricing of interest-earning liabilities.

The following table summarizes rates, yields and average earning asset and costing liability balances for the respective quarters (amounts in thousands):

The following rate/volume analysis depicts the increase (decrease) in net interest income attributable to interest rate and volume fluctuations compared to the prior period (amounts in thousands):

Average balances of interest-earning assets increased $205.0 million, or 10.7%, in the June 2000 quarter compared with the June 1999 quarter, contributing to a $1.1 million increase in net interest income due to changes in volume. A decline in the Company's net interest margin from 3.25% in the June 1999 quarter to 3.00% in the June 2000 quarter reduced net interest income by approximately $727 thousand. There can be no assurance that the Company's net margin will not decline further based on the current spread between short and long-term treasury interest rates, the Company's current asset/liability structure and competitive forces within its markets.

Provision for Loan Losses

During the current quarter, First Financial's provision for loan losses totaled $640 thousand, compared to $760 thousand during the same period in the previous year. Net charge-offs for the current quarter totaled $427 thousand compared with $132 thousand in the comparable quarter in fiscal 1999. Total loan loss reserves as of June 30, 2000 were $15.4 million, or .83% of the total net loan portfolio compared with $14.2 million, or .85% of the total net loan portfolio at June 30, 1999.

Other Income/Non-Interest Expenses

Total other income increased $818 thousand, or 21.6%, in the June 2000 quarter compared to the June 30, 1999 quarter. Proceeds from the sales of loans held for sale totaled $10.3 million in the June 2000 quarter, resulting in gains of $38 thousand on sales. Loan sales of $46.7 million in the comparable quarter in fiscal 1999 resulted in gains of $285 thousand. Fees on deposit accounts improved by 16.6% to $1.9 million in the quarter ended June 30, 2000 as compared with the quarter ended June 30, 1999. Brokerage and insurance fees improved $257 thousand, or approximately 28.0% during the current quarter compared to the June 1999 quarter.

Non-interest expense increased $1.1 million, or 9.9%, during the current quarter. Included in the increase in the current quarter are higher personnel costs which increased $303 thousand and higher occupancy and equipment expenses which increased $178 thousand and $155 thousand, respectively, in the current period. The increase in personnel costs was principally due to expansion of customer services and the staffing of three additional retail offices.

FDIC deposit insurance costs were $65 thousand in the current quarter compared with $177 thousand in the quarter ended June 30, 1999. The FICO assessment for thrifts was lowered to the same rate as commercial banks effective January 1, 2000.

Income Tax Expense

During the third quarter of fiscal 2000 and 1999 the Company's effective tax rate approximated 34.5% and 35.0%, respectively. The actual tax provision was $2.7 million and $2.6 million in the two periods.

COMPARISON OF OPERATING RESULTS
NINE MONTHS ENDING JUNE 30, 2000 AND 1999

Net Interest Income

First Financial's net interest income for the nine months ending June 30, 2000 of $47.3 million increased 5.3% over the $44.9 million recorded in the comparable nine months in fiscal 1999. Growth in net interest income was attributable to a 12.1% increase in the average balances of interest-earning assets offset by the effect of declining margins. The gross interest margin declined to 2.81% from 3.00% in the prior nine months. The net margin also declined to 3.04% versus 3.24% in the nine months ended June 30, 1999.

The following table summarizes rates, yields and average earning asset and costing liability balances for the respective periods (amounts in thousands):

The following rate/volume analysis depicts the increase (decrease) in net interest income attributable to interest rate and volume fluctuations compared to the prior period (amounts in thousands):

Provision for Loan Losses

During the nine months ended June 30, 2000 First Financial's provision for loan losses totaled $2.2 million compared with $2.0 million at June 30, 1999. Net charge-offs for the current nine months totaled $1.4 million compared with $602 thousand in the comparable period in fiscal 1999.

Other Income/Non-interest Expense

Total other income improved $1.7 million, or 15.2%, in the current nine months. Fees on deposit accounts increased $809 thousand during the current nine months. The Company recorded gains of $106 thousand on loan sales during the current nine months compared with gains of $1.3 million in the nine months ended June 30, 1999. Volume of loan sales declined 80% during the two periods reflecting less fixed rate mortgage originations in the nine months ended June 30, 2000, due principally to higher market interest rates.

Brokerage revenues increased $449 thousand or 49.7% in the current nine-month period compared with the prior period. Insurance revenues also increased $485 thousand, or 35.2%, between the comparable periods.

Non-interest expense increased $3.1 million or 9.6% during the current nine months. The increase is attributable principally to higher personnel costs, higher equipment expenses related to new technology investments and the effect of higher expenses related to the Company's Year 2000 project. Deposit insurance costs declined during the period as thrift FICO assessments declined effective January 1, 2000.

Income Tax Expense

During the first nine months of fiscal 2000 and 1999, the Company's effective tax rate approximated 35%. The actual tax provision of $7.9 million resulted in an increase of $251 thousand from the prior period.

YEAR 2000 READINESS DISCLOSURE

The Company continues to monitor its performance in relationship to its comprehensive project concerning the impact of the Year 2000. "Year 2000 Readiness" is the ability of the Company's internal computer systems (hardware, software and embedded microchips) to process data involving dates or portions of dates before, during and after January 1, 2000, including leap year calculations, without malfunction. A comprehensive discussion of the Company's Year 2000 project is included in the Company's Annual Report on Form 10-K for the year ended September 30, 1999. Year 2000 compliance is critical to the Company's results of operations and financial condition.

The Company is pleased to report that its hardware and software systems and those of its critical vendors performed as expected over the end of the calendar year and have continued to process well in Year 2000. Critical dates remaining for the Year 2000 project include the following: December 31, 2000 and January 1, 2001. The Company will continue to test its automated systems and confirm critical vendor performance as these dates approach.

IMPACT OF REGULATORY AND ACCOUNTING ISSUES

For a comprehensive discussion of regulatory and accounting issues, refer to "Regulatory and Accounting Issues" in the Company's 10-K for the fiscal year ending September 30, 1999.

In June of 1998 the FASB issued SFAS 133, "Accounting for Derivative Instruments and Hedging Activities." SFAS 133 establishes, for the first time, comprehensive accounting and reporting standards for derivative instruments and hedging activities. For accounting purposes SFAS 133 comprehensively defines a derivative instrument. SFAS 133 requires that all derivative instruments be recorded in the statement of financial position at fair value. The accounting for the gain or loss due to change in fair value of the derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged.

SFAS 137 "Accounting for Derivative Instruments and Hedging Activities--Deferral of the Effective Date of FASB Statement No. 133--an amendment of FASB No. 133" delayed the effective date of this statement for one year. In June of 2000, SFAS 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities--an amendment of FASB Statement No. 133", was issued, amending SFAS 133 to address a limited number of issues causing implementation difficulties. This statement is effective for fiscal quarters in fiscal years beginning after June 15, 2000. The Company will be required to adopt this statement October 1, 2000. The Company does not expect the adoption of SFAS 133 to have a materially adverse impact on the consolidated financial position or results of operations of the Company.

 

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FIRST FINANCIAL HOLDINGS, INC.
OTHER INFORMATION

Item 1 - Legal Proceedings

Periodically, there are various claims and lawsuits involving the Associations and their subsidiaries mainly as defendants, such as claims to enforce liens, condemnation proceedings on properties in which the Associations hold security interests, claims involving the making and servicing of real property loans and other issues incident to the Association's business. In the opinion of management and the Company's legal counsel, no material loss is expected from any of such pending claims or lawsuits.

Item 3 - Quantitative and Qualitative Disclosures about Market Risk

Market risk reflects the risk of economic loss resulting from adverse changes in market price and interest rates. This risk of loss can be reflected in diminished current market values and/or reduced potential net interest income in future periods.

The Corporation's market risk arises primarily from interest rate risk inherent in its lending, deposit-taking and other funding activities. The structure of the Corporation's loan, investment, deposit and borrowing portfolios is such that a significant increase in interest rates may adversely impact net market values and net interest income. The Corporation does not maintain a trading account nor is the Corporation subject to currency exchange risk or commodity price risk. Responsibility for monitoring interest rate risk rests with the Asset/Liability Management Committee ("ALCO"), which is comprised of senior management. ALCO regularly reviews the Corporation's interest rate risk position and adopts balance sheet strategies that are intended to optimize net interest income while maintaining market risk within a set of Board-approved guidelines.

As of June 30, 2000, Management believes that there have been no significant changes in market risk as disclosed in the Corporation's Annual Report on Form 10-K for the year ended September 30, 1999.

Item 6 - Exhibits and Report on Form 8-K.

Exhibits

(3.1)	Certificate of Incorporation, as amended, of Registrant (1)
(3.2)	Bylaws, as amended, of Registrant (2)
(3.4)	Amendment to Registrant's Certificate of Incorporation (3)
(3.6)	Amendment to Registrant's Bylaws (4)
(4)	Indenture, dated September 10, 1992, with respect to the Registrant's 9.375% Senior Notes, due September 1, 2001 (5)
(10.1)	Acquisition Agreement dated as of December 9, 1991 by and among the Registrant, First Federal Savings and Loan Association of Charleston and Peoples Federal Savings and Loan Association of Conway (5)
(10.3)	Employment Agreement with A. Thomas Hood, as amended (6)
(10.4)	Employment Agreement with Charles F. Baarcke, Jr. (7)
(10.5)	Employment Agreement with John L. Ott, Jr. (7)
(10.6)	1990 Stock Option and Incentive Plan (8)
(10.7)	1994 Outside Directors Stock Options-for-Fees Plan (9)
(10.8)	1994 Employee Stock Purchase Plan (9)
(10.9)	1996 Performance Equity Plan for Non-Employee Directors (10)
(10.10)	Employment Agreement with Susan E. Baham (6)
(10.11)	1997 Stock Option and Incentive Plan (11)
(10.12)	Investors Savings Bank of South Carolina, Inc. Incentive Stock Option Plan (12)
(10.13)	Borrowing Agreement with Bankers Bank (13)
(10.14)	Amendment to the 1994 Employee Stock Purchase Plan (14)
(22)	Subsidiaries of the Registrant (4)
(27)	Financial Data Schedule
(1)	Incorporated by reference to Exhibit 3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended December 31, 1993
(2)	Incorporated by reference to Exhibit 3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 1995
(3)	Incorporated by reference to Registrant's Quarterly Report on Form 10-Q for the quarter ended December 31, 1997
(4)	Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended September 30, 1999
(5)	Incorporated by reference to the Registrant's Registration Statement on Form S-8 File No. 33-55067.
(6)	Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended September 30, 1996.
(7)	Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended September 30, 1995.
(8)	Incorporated by reference to the Registrant's Registration Statement on Form S-8 File No. 33-57855.
(9)	Incorporated by reference to the Registrant's Proxy Statement for the Annual Meeting of Stockholders held on January 25, 1995
(10)	Incorporated by reference to the Registrant's Proxy Statement for the Annual Meeting of Stockholders held on January 22, 1997.
(11)	Incorporated by reference to the Registrant's Preliminary Proxy Statement for the Annual Meeting of Stockholders to be held on January 28, 1998.
(12)	Incorporated by reference to the Registrant's Registration Statement on Form S-8 File No. 333-45033.
(13)	Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 1998.
(14)	Incorporated by reference to the Registrant's Preliminary Proxy Statement for the Annual Meeting of Stockholders to be held on January 26, 2000.

Reports on Form 8-K

None

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FIRST FINANCIAL HOLDINGS, INC.
SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	First Financial Holdings, Inc.
Date: August 14, 2000	By:	/s/ Susan E. Baham
	Susan E. Baham
	Senior Vice President and
	Chief Financial Officer