First Financial Holdings Inc. Reports Operating Results (10-Q)

Author's Avatar
Feb 09, 2011
First Financial Holdings Inc. (FFCH, Financial) filed Quarterly Report for the period ended 2010-12-31.

First Financial Holdings Inc. has a market cap of $174.2 million; its shares were traded at around $10.26 with and P/S ratio of 0.7. The dividend yield of First Financial Holdings Inc. stocks is 1.9%.Hedge Fund Gurus that owns FFCH: Private Capital of Private Capital Management, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns FFCH: Arnold Schneider of Schneider Capital Management, HOTCHKIS & WILEY of Hotchkis & Wliey Capital Management LLC, Chuck Royce of Royce& Associates, Diamond Hill Capital of Diamond Hill Capital Management Inc, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

As a holding company, First Financial conducts its business through its subsidiaries. Unlike First Federal, First Financial is not subject to any regulatory liquidity requirements. Potential sources for First Financial s payment of principal and interest on its borrowings, preferred and common stock dividends and for its future funding needs include dividends from First Federal and other subsidiaries, payments from existing cash reserves and sales of marketable securities, interest on our investment securities and additional borrowings or stock offerings. As of December 31, 2010, First Financial had liquid assets of $29.6 million compared with $26.1 million at September 30, 2010.

Rate sensitive assets repricing within one year exceeded rate sensitive liabilities repricing within one year by $73.1 million or 2.21% of total assets as of December 31, 2010, compared with $82.9 million or 2.5% of total assets at September 30, 2010. This reflects a less asset-sensitive position than at September 30, 2010. Repricing gap analysis is limited in its ability to measure interest rate sensitivity. The repricing characteristics of assets, liabilities, and off-balance sheet derivatives can change in different interest rate scenarios, thereby changing the repricing position from that outlined above. Further, basis risk is not captured by repricing gap analysis. Basis risk is the risk that changes in interest rates will reprice interest-bearing liabilities differently from interest-earning assets, thus causing an asset/liability mismatch. This analysis does not take into consideration the repricing dynamics in adjustable-rate loans, such as minimum and maximum annual and lifetime interest rate adjustments and also the index utilized and whether the index is a current or lagging index. Included in the analysis are our estimates of prepayments of fixed-rate loans and mortgage-backed securities in a one-year period and our expectation that under current interest rates, certain advances of the FHLB of Atlanta will not be called and loans will not reprice due to floors. Also included in the analysis are our estimates of core deposit decay rates, based on recent studies and regression analysis of our core deposits.

Read the The complete Report