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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 24, 2000
First Financial Holdings, Inc.
(Exact name of registrant as specified in charter)
Delaware
0-17122
57-0866076
State or other jurisdiction of incorporation
Commission File Number
I.R.S. Employer I.D. number
34 Broad Street, Charleston, South Carolina
29401
(Address of principal executive offices)
(Zip Code)
(843) 529-5933
Registrant's telephone number (including area code)
Item 5. Other Events
On October 24, 2000, First Financial Holdings, Inc. reported earnings for the year and for the quarter ended September 30, 2000. For more information regarding this matter, see the attached press release distributed to the media and materials distributed to analysts.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
Exhibit (1). Press release dated October 24, 2000 and selected financial data for the year and the quarter ended September 30, 2000.
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 hereunto duly authorized.
FIRST FINANCIAL HOLDINGS, INC
/s/ Susan E. Baham
Susan E. Baham
Senior Vice President and Chief Financial Officer
Date: October 25, 2000
Exhibit 1
Press release dated October 24, 2000 with selected financial data.
Contact: Susan Baham Senior Vice President (843) 529-5601 FIRST FINANCIAL HOLDINGS, INC.
REPORTS RECORD RESULTS FOR 2000
Charleston, South Carolina (October 24, 2000) -- First Financial Holdings, Inc. (NASDAQ:FFCH), reported today that earnings for fiscal 2000 totaled $19.9 million, setting a new company record. Fourth quarter 2000 earnings were $5.1 million. Year-to-date and quarterly earnings in the comparable periods in fiscal 1999 totaled $19.3 million and $5.1 million, respectively. On a diluted per share basis, earnings for the year ended September 30, 2000 totaled $1.47, compared to $1.40 in the prior year. Diluted earnings per share for the September 2000 quarter totaled $.38 compared to $.37 in the comparable quarter in 1999.
President and Chief Executive Officer A. Thomas Hood commented on results. "We are very pleased to report another record year for First Financial. We continued to achieve solid results in fiscal 2000 under less than favorable market conditions due to rising interest rates. Many initiatives were underway in fiscal 2000 and we are extremely proud of a number of accomplishments. After successfully introducing Internet banking services in our third quarter, we already have approximately 4.0% of our retail deposit households taking advantage of this service. Our retail and business checking account customers recently began to receive image statements. We are extremely pleased with the implementation of image technology and the benefits it will offer to our customers and staff. We feel confident that these and other substantial technology investments made in fiscal 2000 will benefit the Company and our customers for many years to come."
"Traditional banking channels also expanded in 2000 with the addition of two offices in Hilton Head, South Carolina. A third office in Bluffton is expected to open by year end. We believe that coastal South Carolina markets remain some of the most attractive in the Southeast. Insurance operations also expanded in fiscal 2000 with First Southeast Insurance Services purchasing the operations of Associated Insurors in Myrtle Beach, South Carolina. Four months of Associated's operations are included in our fiscal 2000 results," Hood further noted.
Non-interest income totaled $18.3 million in fiscal 2000 compared with $15.3 million in fiscal 1999. Gains on sales of loans declined by $1.3 million as compared with the prior year, reflective of lower mortgage loan originations and sales during the year. However, deposit account fees, brokerage fees and insurance revenues increased substantially, with total non-interest revenues increasing 19.6% in fiscal 2000.
The Company securitized approximately $142 million of residential loans for mortgage-backed securities in the last two quarters of fiscal 2000. Approximately $37 million of these securities were sold in September 2000 and borrowed funds were repaid with the proceeds. Further securitizations are planned for the first quarter of fiscal 2001. Assets grew approximately 9.0% in fiscal 2000 and net loan balances increased 5.5%. Adding back the effect of the securitizations would have pushed loan growth to approximately 13.0% in fiscal 2000. The net interest margin for the year ended September 30, 2000 was 2.99% compared with 3.22% in fiscal 1999. The final quarter reflected a net margin of 2.85% compared with 3.16% in the fourth quarter of fiscal 1999.
"The net margin decline in fiscal 2000 reflected several factors. The effects of six interest rate increases by the Federal Reserve played a major role. Much of the Company's loan growth in fiscal 2000 has been funded by borrowings and the Company has generally used shorter-term funding at a higher relative cost to other sources to support loan growth. The Company estimates that the loan securitizations accounted for a 3 basis point reduction in the margin for the fourth quarter. The recent sales of a portion of these securities should allow the Company to add higher yielding assets to its balance sheet during fiscal 2001. A more stable interest rate environment in fiscal 2001 is expected to have a favorable impact on future net interest margins," Hood concluded.
First Financial ended the year with assets of approximately $2.3 billion, deposits of $1.2 billion, loans totaling $1.8 billion and stockholders equity of $137.9 million. Book value per common share increased to $10.35 at September 30, 2000 compared with $9.43 one year ago. Return on average stockholders' equity for the year was 15.21% compared with 15.38% in fiscal 1999. The Company recently announced the extension of its previously announced stock repurchase program to March 31, 2001. The Company has repurchased 93,300 shares under the 500,000 share repurchase program.
First Financial is the multiple thrift holding company of First Federal Savings and Loan Association of Charleston and Peoples Federal Savings and Loan Association of Conway. The Associations operate 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 North Carolina. The Company also provides brokerage, trust and insurance services through First Southeast Investor Services, First Southeast Fiduciary and Trust Services and First Southeast Insurance Services. For additional information about First Financial, please visit our web site at www.firstfinancialholdings.com.
Certain matters in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company's actual results, performance or achievements may differ materially from those suggested, expressed or implied by forward-looking statements due to a wide range of factors including, but not limited to, the general business environment, interest rates, the South Carolina real estate market, competitive conditions between banks and non-bank financial services providers, regulatory changes and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended September 30, 1999.
FIRST FINANCIAL HOLDINGS, INC. Unaudited Consolidated Financial Highlights (in thousands, except share data) 09/30/00 09/30/99 06/30/00 Statements of Financial Condition Assets Cash and cash equivalents $ 63,992 $ 60,151 $ 70,015 Investments 45,492 37,743 44,312 Loans receivable 1,838,497 1,742,150 1,848,619 Mortgage-backed securities 247,095 181,245 233,936 Office properties, net 29,503 21,969 28,131 Real estate owned 5,895 5,685 5,933 Other assets 26,037 21,809 24,904 Total Assets 2,256,511 2,070,752 2,255,850 Liabilities Deposits 1,241,295 1,219,848 1,237,911 Advances from Federal Home Loan Bank 766,500 594,500 773,500 Other borrowings 61,522 82,741 63,159 Other liabilities 49,343 47,782 47,927 Total Liabilities 2,118,660 1,944,871 2,122,497 Stockholders' equity Stockholders' equity 157,893 144,753 154,542 Treasury stock (18,575) (17,241) (18,358) Accumulated other comprehensive loss (1,467) (1,631) (2,831) Total stockholders' equity 137,851 125,881 133,353 Total liabilities and stockholders' equity 2,256,511 2,070,752 2,255,850 Stockholders' equity/assets 6.11% 6.08% 5.91% Common shares outstanding 13,318 13,353 13,325 Book value per share $ 10.35 $ 9.43 $ 10.01 Three Months Ended 09/30/00 09/30/99 06/30/00 Statements of Income Interest income $ 43,008 $ 36,639 $ 41,228 Interest expense 27,510 21,092 25,338 Net interest income 15,498 15,547 15,890 Provision for loan losses (575) (760) (640) Net interest income after provision 14,923 14,787 15,250 Other income Net gain on sale of loans 22 126 38 Net gain on sale of investments and mortgage-backed securities 116 25 28 Brokerage fees 440 367 440 Commissions on insurance 973 572 735 Service charges and fees on deposit accounts 1,965 1,767 1,915 Loan servicing fees 565 295 523 Real estate operations (net) 243 100 50 Other 993 780 876 Total other income 5,317 4,032 4,605 Other expenses Salaries and employee benefits 7,219 6,545 6,843 Occupancy costs 1,004 861 966 Marketing 476 238 366 Depreciation, amort., etc. 1,102 892 986 FDIC insurance premiums 64 188 65 Other 2,644 2,282 2,839 Total other expenses 12,509 11,006 12,065 Income before income taxes 7,731 7,813 7,790 Provision for income taxes 2,595 2,739 2,690 Net income 5,136 5,074 5,100 Earnings per common share: Basic 0.39 0.38 0.38 Diluted 0.38 0.37 0.38 Average shares outstanding 13,321 13,344 13,332 Average diluted shares outstanding 13,521 13,631 13,519 Ratios: Return on average equity 15.15% 16.35% 15.48% Return on average assets 0.91% 1.00% 0.92% Net interest margin 2.85% 3.16% 3.00% Operating expense/average assets 2.22% 2.16% 2.17% Efficiency ratio 61.22% 56.94% 59.20% Net charge-offs/average net loans 0.03% 0.02% 0.02% Year Ended 09/30/00 09/30/99 Statements of Income Interest income $161,642 $140,832 Interest expense 98,888 80,394 Net interest income 62,754 60,438 Provision for loan losses (2,745) (2,765) Net interest income after provision 60,009 57,673 Other income Net gain on sale of loans 128 1,392 Net gain on sale of investments and mortgage-backed securities 144 37 Brokerage fees 1,793 1,271 Commissions on insurance 2,837 1,951 Service charges and fees on deposit accounts 7,593 6,586 Loan servicing fees 1,883 1,176 Real estate operations (net) 377 88 Other 3,555 2,813 Total other income 18,310 15,314 Other expenses Salaries and employee benefits 28,008 25,625 Occupancy costs 3,738 3,203 Marketing 1,579 1,316 Depreciation, amort., etc. 3,914 3,328 FDIC insurance premiums 406 728 Other 10,239 9,080 Total other expenses 47,884 43,280 Income before income taxes 30,435 29,707 Provision for income taxes 10,507 10,400 Net income 19,928 19,307 Earnings per common share: Basic 1.49 1.44 Diluted 1.47 1.40 Average shares outstanding 13,341 13,451 Average diluted shares outstanding 13,559 13,786 Ratios: Return on average equity 15.21% 15.38% Return on average assets 0.91% 0.99% Net interest margin 2.99% 3.22% Operating expense/average assets 2.19% 2.21% Efficiency ratio 59.55% 58.30% Net charge-offs/average net loans 0.11% 0.06% 09/30/00 09/30/99 06/30/00 Credit quality-quarterly results Total reserves for loan losses $ 15,403 $ 14,570 $ 15,388 Loan loss reserves/net loans 0.84% 0.84% 0.83% Reserves/non-performing loans 178.65% 202.08% 222.85% Provision for losses $ 575 $ 760 $ 640 Net loan charge-offs $ 560 $ 374 $ 427 Problem assets Non-accrual loans $ 5,881 $ 4,466 $ 4,166 Accruing loans 90 days or more past due 29 20 24 Renegotiated loans 2,712 2,724 2,715 REO thru foreclosure 5,895 5,685 5,933 Total $ 14,517 $ 12,895 $ 12,838 As a percent of total assets 0.64% 0.62% 0.57%
Selected Financial Data (amounts in thousands except per share data) On the Date of (Unaudited) STATEMENT OF CONDITION 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 Assets Cash and investments $ 109,484 $ 114,327 $ 107,637 $ 114,225 $ 97,894 $ 93,736 $ 98,988 $ 96,634 Loans receivable 1,838,497 1,848,619 1,863,687 1,808,000 1,742,150 1,674,214 1,610,859 1,569,504 Mortgage-backed securities 247,095 233,936 164,443 170,810 181,245 192,433 210,127 178,875 Office properties and equip. 29,503 28,131 25,938 23,808 21,969 19,729 18,409 18,041 Real estate owned 5,895 5,933 6,123 6,139 5,685 5,806 5,765 6,071 Other assets 26,037 24,904 22,308 33,944 21,809 20,452 24,860 23,679 Total assets $2,256,511 $2,255,850 $2,190,136 $2,156,926 $2,070,752 $2,006,370 $1,969,008 $1,892,804 Liabilities Deposits $1,241,295 $1,237,911 $1,229,097 $1,236,069 $1,219,848 $1,208,050 $1,200,408 $1,190,361 Advances-FHLB 766,500 773,500 718,500 672,500 594,500 579,500 546,500 502,500 Other borrowed money 61,522 63,159 68,763 82,693 82,741 50,829 55,781 32,068 Other liabilities 49,343 47,927 43,582 37,834 47,782 45,586 44,036 44,809 Total liabilities 2,118,660 2,122,497 2,059,942 2,029,096 1,944,871 1,883,965 1,846,725 1,769,738 Stockholders' equity 139,318 136,184 133,164 130,465 127,512 123,910 121,580 122,149 Unrealized gain (loss) on available for sale securities (1,467) (2,831) (2,970) (2,635) (1,631) (1,505) 703 917 Total stockholders' equity 137,851 133,353 130,194 127,830 125,881 122,405 122,283 123,066 Total liabilities and stockholders' equity $2,256,511 $2,255,850 $2,190,136 $2,156,926 $2,070,752 $2,006,370 $1,969,008 $1,892,804
Quarter Ended (Unaudited) Fiscal Year (unaudited) 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 09/30/00 09/30/99 STATEMENT OF OPERATIONS Total interest income $ 43,008 $ 41,228 $ 39,409 $ 37,997 $ 36,639 $ 35,637 $ 34,142 $ 34,414 $161,642 $140,832 Total interest expense 27,510 25,338 23,660 22,380 21,092 20,089 19,447 19,766 98,888 80,394 Net interest income 15,498 15,890 15,749 15,617 15,547 15,548 14,695 14,648 62,754 60,438 Provision for loan losses (575) (640) (690) (840) (760) (760) (585) (660) (2,745) (2,765) Net int. inc. after provision 14,923 15,250 15,059 14,777 14,787 14,788 14,110 13,988 60,009 57,673 Other income Net gain (loss) on sale of loans $ 22 $ 38 $ 27 $ 41 $ 126 $ 285 $ 652 $ 329 $ 128 $ 1,392 Gain on investment securities 116 28 0 0 25 (6) 0 18 144 37 Loan servicing fees 565 523 399 396 295 275 294 312 1,883 1,176 Svc. chgs/fees-dep. accts 1,965 1,915 1,801 1,912 1,767 1,643 1,536 1,640 7,593 6,586 Real estate operations (net) 243 50 40 44 100 (17) 0 5 377 88 Other 2,406 2,051 2,010 1,718 1,719 1,607 1,450 1,259 8,185 6,035 Total other income 5,317 4,605 4,277 4,111 4,032 3,787 3,932 3,563 18,310 15,314 Other expenses Salaries & employee benefits 7,219 6,843 6,938 7,008 6,545 6,540 6,371 6,169 28,008 25,625 Occupancy costs 1,004 966 862 906 861 788 791 763 3,738 3,203 Marketing 476 366 398 339 238 412 332 334 1,579 1,316 Depreciation, amort., etc. 1,102 986 952 874 892 831 844 761 3,914 3,328 FDIC insurance premium 64 65 74 203 188 177 194 169 406 728 Other 2,644 2,839 2,478 2,278 2,282 2,227 2,384 2,187 10,239 9,080 Total other expenses 12,509 12,065 11,702 11,608 11,006 10,975 10,916 10,383 47,884 43,280 Income before taxes 7,731 7,790 7,634 7,280 7,813 7,600 7,126 7,168 30,435 29,707 Provision for income taxes 2,595 2,690 2,709 2,513 2,739 2,659 2,493 2,509 10,507 10,400 Net Income $ 5,136 $ 5,100 $ 4,925 $ 4,767 $ 5,074 $ 4,941 $ 4,633 $ 4,659 $ 19,928 $ 19,307
Quarter Ended (unaudited) Fiscal Year (unaudited) 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 09/30/00 09/30/99 PERFORMANCE RATIOS Earnings per common share: Net income: Basic $ 0.39 $ 0.38 $ 0.37 $ 0.36 $ 0.38 $ 0.37 $ 0.34 $ 0.34 $ 1.49 $ 1.44 Diluted $ 0.38 $ 0.38 $ 0.36 $ 0.35 $ 0.37 $ 0.36 $ 0.34 $ 0.33 $ 1.47 $ 1.40 Other ratios Return on Assets 0.91% 0.92% 0.91% 0.90% 1.00% 0.99% 0.96% 1.00% 0.91% 0.99% Return on Equity 15.15% 15.48% 15.27% 15.03% 16.35% 16.15% 15.11% 15.02% 15.21% 15.38% Net int. income/avg. earn. assets 2.85% 3.00% 3.04% 3.10% 3.16% 3.25% 3.20% 3.27% 2.99% 3.22% Operating exp./avg. assets 2.22% 2.17% 2.15% 2.20% 2.16% 2.21% 2.26% 2.22% 2.19% 2.21% Efficiency ratio 61.22% 59.20% 58.63% 59.09% 56.95% 57.54% 60.73% 58.14% 59.55% 58.30% Period Ended (unaudited) ON THE DATE OF 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 Total shares outstanding 13,318 13,325 13,338 13,363 13,353 13,339 13,385 13,486 Book value per share $ 10.35 $ 10.01 $ 9.76 $ 9.57 $ 9.43 $ 9.18 $ 9.14 $ 9.13 Equity/assets 6.11% 5.91% 5.94% 5.93% 6.08% 6.10% 6.21% 6.50%
Quarter Ended (unaudited) Fiscal Year (unaudited) 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 09/30/00 09/30/99 AVERAGE BALANCES Total assets $2,256,181 $2,222,993 $2,173,531 $2,113,839 $2,038,561 $1,987,689 $1,930,906 $1,866,256 $2,186,035 $1,955,230 Earning assets 2,177,581 2,118,266 2,075,010 2,018,098 1,967,394 1,913,244 1,835,561 1,793,841 2,097,240 1,877,318 Loans 1,878,596 1,891,476 1,847,952 1,783,776 1,724,201 1,652,904 1,604,681 1,579,558 1,850,345 1,640,497 Costing liabilities 2,084,183 2,028,156 1,984,209 1,921,826 1,864,936 1,821,195 1,745,068 1,692,634 2,002,371 1,780,390 Deposits 1,243,666 1,227,994 1,225,150 1,228,077 1,215,184 1,209,678 1,190,993 1,176,605 1,229,037 1,197,476 Equity 135,602 131,774 129,012 126,856 124,143 122,344 122,674 124,115 131,022 125,522 Loans originated Mortgage loans $ 71,017 $ 105,635 $ 93,090 $ 91,970 $ 111,136 $ 147,251 $ 128,070 $ 120,927 $ 361,712 $ 507,384 Consumer loans 57,570 60,015 49,671 43,530 39,653 41,909 55,105 33,391 210,786 170,058 Commercial loans 18,488 20,999 22,140 20,032 16,261 17,933 17,583 11,355 81,659 63,132 Total loan originations $ 147,075 $ 186,649 $ 164,901 $ 155,532 $ 167,050 $ 207,093 $ 200,758 $ 165,673 $ 654,157 $ 740,574 AS OF 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 Composition of gross loan portfolio Residential (1-4 family) $1,266,025 $1,310,518 $1,352,043 $1,328,208 $1,296,522 $1,242,612 $1,192,107 $1,158,911 Other residential 48,937 50,365 48,066 46,051 46,254 47,656 38,901 39,058 A & D and lots 91,396 88,667 87,697 85,949 87,367 83,935 85,548 85,709 Commercial real estate 131,028 129,459 131,308 123,972 123,121 123,297 125,042 126,766 Consumer 311,990 288,929 261,501 239,374 217,115 206,899 189,730 178,779 Commercial business 57,381 53,953 51,249 49,440 42,721 40,105 37,693 34,343 $1,906,757 $1,921,891 $1,931,864 $1,872,994 $1,813,100 $1,744,504 $1,669,021 $1,623,566
Period Ended (unaudited) 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 ASSET QUALITY Non-accrual loans $ 5,881 $ 4,166 $ 4,356 $ 5,010 $ 4,466 $ 4,368 $ 4,828 $ 2,784 Loans 90 days or more past due 29 24 1,404 20 20 52 27 45 Renegotiated loans 2,712 2,715 2,718 2,721 2,724 2,731 2,782 4,368 REO thru foreclosure 5,895 5,933 6,123 6,139 5,685 5,806 5,765 6,071 TOTAL $14,517 $12,838 $ 14,601 $ 13,890 $ 12,895 $ 12,957 $ 13,402 $ 13,268 Period Ended (unaudited) 09/30/00 06/30/00 03/31/00 12/31/99 09/30/99 06/30/99 03/31/99 12/31/98 LOAN AND REO LOSS RESERVES Total reserves for loan losses $15,403 $15,388 $ 15,175 $ 14,786 $ 14,570 $ 14,184 $ 13,556 $ 13,251 Loan loss reserves/net loans 0.84% 0.83% 0.81% 0.82% 0.84% 0.85% 0.84% 0.84% Provision for losses 575 640 690 840 760 760 585 660 Net loan charge-offs 560 427 301 624 374 132 280 190 Net charge-offs/Average net loans 0.03% 0.02% 0.02% 0.04% 0.02% 0.01% 0.02% 0.01%
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