First Federal Savings and Loan Association of Charleston Acquires All Deposits
and Loans of Wilmington-based Cape Fear Bank
Company to expand service to new customers in North Carolina
CHARLESTON, S.C. and WILMINGTON, N.C., April 10 /PRNewswire-FirstCall/ --
First Federal Savings and Loan Association of Charleston ("First Federal"), a
subsidiary of First Financial Holdings, Inc. (Nasdaq: FFCH), announced that it
has entered into an agreement with the Federal Deposit Insurance Corporation
("FDIC") to assume all of the deposits (excluding most brokered deposits) and
certain assets of Cape Fear Bank, a full service community bank headquartered
in Wilmington, North Carolina. All Cape Fear Bank offices will be open and
serving customers on Monday, April 13, 2009, as branches of First Federal.
Cape Fear Bank depositors will automatically become depositors of First
Federal, and deposits will continue to be insured by the FDIC. With this
acquisition, First Federal will now operate 66 retail banking centers in North
and South Carolina.
Over the weekend, depositors of Cape Fear Bank can access their money by
writing checks or using ATM or debit cards. Checks drawn on Cape Fear Bank
will continue to be processed. Loan customers should continue to make their
payments as usual. Customers of both banks should continue to bank as they
normally do at their existing branches.
"We are delighted to welcome Cape Fear Bank customers to the First Federal
family of financial services companies. Customers can be confident that their
deposits are safe and readily accessible. It's business as usual," said A.
Thomas Hood, president and CEO of First Federal. "First Federal has served
customers' financial needs since 1934 with a deep commitment to building
relationships."
Cape Fear Bank operated eight locations in the Wilmington area. First Federal
will be acquiring the assets and deposits of Cape Fear Bank at a discount of
$74 million and a premium on deposits of 1%. In this transaction, First
Federal will be receiving approximately $300 million of deposits, $380 million
in loans and $4 million of other real estate owned (ORE) from Cape Fear Bank.
The loans and ORE purchased are covered by a loss share agreement between the
FDIC and First Federal. Under such agreement, the FDIC has agreed to cover
80% of the losses on the disposition of the loans and ORE up to $110 million,
and 95% of losses that exceed that amount. In addition, First Federal will
also be purchasing cash and other marketable securities of Cape Fear Bank.
Customers who have questions about the transaction can call the FDIC Call
Center toll free at 1.866.806.6128. The phone number is operational this
evening until 9:00 p.m. Eastern Daylight Time; on Saturday from 9:00 a.m. to
6:00 p.m. Eastern Daylight Time; on Sunday from noon to 6:00 p.m. Eastern
Daylight Time and thereafter from 8:00 a.m. to 8:00 p.m. Eastern Daylight
Time. Information is also available from the FDIC's website at www.fdic.gov.
In addition, they can visit their former Cape Fear Bank branch should they
have questions about their banking relationship.
At December 31, 2008, First Financial's assets were $3 billion. First
Financial is publicly traded on the NASDAQ Global Select Market under the
ticker symbol "FFCH."
First Financial is the holding company for First Federal Savings and Loan
Association of Charleston, which now operates 66 offices located in the
Charleston metropolitan area, Horry, Georgetown, Florence and Beaufort
counties in South Carolina and Brunswick, New Hanover and Pender Counties in
coastal North Carolina offering banking and trust services. The Company also
provides insurance and brokerage services through First Southeast Insurance
Services, The Kimbrell Insurance Group and First Southeast Investor Services.
Forward Looking Statements
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, including operating efficiencies, 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. Management's ability to predict results or the effect of
future plans or strategies is inherently uncertain. The Company's actual
results, performance or achievements may differ materially from those
suggested, expressed or implied by forward-looking statements as a result of a
wide range of factors including, but not limited to, the general business
environment, general economic conditions nationally and in the States of South
Carolina and North Carolina, interest rates, the South Carolina and North
Carolina real estate markets, the demand for mortgage loans, the credit risk
of lending activities, including changes in the level of and trend of loan
delinquencies and charge-offs, results of examinations by our banking
regulators, 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 ("SEC"),
including the Annual Report on Form 10-K for the fiscal year ended September
30, 2008. Accordingly, these factors should be considered in evaluating the
forward-looking statements, and undue reliance should not be placed on these
statements.
Such forward-looking statements may include projections. Such projections
were not prepared in accordance with published guidelines of the American
Institute of Certified Public Accountants or the SEC regarding projections and
forecasts nor have such projections been audited, examined or otherwise
reviewed by independent auditors of the Company. In addition, such
projections are based upon many estimates and inherently subject to
significant economic and competitive uncertainties and contingencies, many of
which are beyond the control of management of the Company. Accordingly,
actual results may be materially higher or lower than those projected. The
inclusion of such projections herein should not be regarded as a
representation by the Company that the projections will prove to be correct.
The Company does not undertake to update any forward-looking statement that
may be made on behalf of the Company.
For additional information about First Financial, please visit our web site at
www.firstfinancialholdings.com or contact Dorothy B. Wright, Vice President -
Investor Relations and Corporate Secretary, (843) 529-5931.
SOURCE First Financial Holdings, Inc.
Dorothy B. Wright, Vice President-Investor Relations and Corporate Secretary,
+1-843-529-5931, +1-843-729-7005, dwright@firstfinancialholdings.com
