First Financial Holdings, Inc. (Nasdaq: FFCH) today announced preliminary information regarding earnings results for the quarter ended December 31, 2007, its first quarter of fiscal 2008.
The Company previously announced that it was offering an early retirement program to employees who met certain age/service criteria. The pre-tax expense related to this program is approximately $1.75 million. The Company also recorded an expense during the first quarter for its share of the Visa USA Inc. antitrust lawsuit settlement with American Express and other pending Visa litigation (reflecting our share as a Visa member) of approximately $260 thousand before tax. After tax, the effect of these two items is a reduction of earnings per share of approximately $0.11 per common diluted share for the quarter ended December 31, 2007. The Company expects that proceeds from an anticipated share redemption related to its ownership interest in Visa's planned initial public offering will more than offset its recorded Visa- related liabilities.
In addition, the Company expects to increase its loan loss provision to $3.25 million for the quarter ended December 31, 2007. The increase in the provision is primarily attributable to probable losses related to four residential lot loans and to a $475,000 charge-off related to one commercial real estate land loan. It should be noted that overall loan portfolio growth has been strong during this quarter and this is another factor in the increased provision as well. Loan balances are expected to increase approximately $55 million for the quarter ended December 31, 2007 from $2.16 billion at September 30, 2007.
The Company has scheduled its regular quarterly earnings conference call on Thursday, January 17 at 2:00 p.m. EST. Management will discuss results for the first quarter of fiscal 2008 at that time.
First Financial is the unitary savings and loan holding company for First Federal Savings and Loan Association of Charleston, which operates 55 offices located in the Charleston metropolitan area, Horry, Georgetown, Florence and Beaufort counties in South Carolina and Brunswick County in coastal North Carolina. The Company also provides insurance, brokerage and trust services through First Southeast Insurance Services, The Kimbrell Insurance Group, First Southeast Investor Services and First Southeast Fiduciary and Trust Services. -- First Financial Holdings, Inc.
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