First Financial Holdings, Inc. Announces First Quarter Fiscal 2011 Net Income
The allowance for loan losses totaled $88.3 million or 3.42% of total loans at December 31, 2010, compared with $86.9 million or 3.39% of total loans at September 30, 2010 and $73.5 million or 2.78% of total loans at December 31, 2009. The increases in the allowance for loan losses were primarily the result of higher levels of nonperforming loans, evaluation of the fair value of the underlying collateral supporting these loans, and higher loss migration rates.
Quarterly Results of Operations
First Financial reported net income of $1.2 million for the three months ended December 31, 2010, compared with net losses of $(1.2) million for the three months ended September 30, 2010 and $(4.5) million for the three months ended December 31, 2009. Total revenue, which consists of net interest income and noninterest income, totaled $46.1 million for the three months ended December 31, 2010, compared with $49.9 million for the three months ended September 30, 2010 and $50.0 million for the three months ended December 31, 2009. Pre-tax, pre-provision earnings decreased to $12.3 million for the quarter ended December 31, 2010, compared with $15.2 million and $14.6 million for the quarters ended September 30, 2010 and December 31, 2009, respectively. The decreases were primarily the result of declines in total revenues as discussed below.
Net interest incomeNet interest margin, on a fully tax-equivalent basis, was 3.83% for the quarter ended December 31, 2010, compared with 3.91% for the prior quarter and 3.96% for the same quarter last year. While First Financial realized a seven basis point reduction in cost of funds due to repricing of deposits and borrowed funds, a 15 basis point decrease in the average yield on assets resulted in a net decrease in net interest margin from the prior quarter. The decline from the same quarter last year was also a result of the reduction in the yield on assets exceeding the decline in cost of funds. First Financial continues to reprice deposits as market competition will support, and earning assets continue to reprice and be replaced with lower yielding assets.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV