First Financial Holdings gets Treasury investment

CHARLESTON, S.C. - First Financial Holdings Inc., the parent of First Federal Savings and Loan Association of Charleston, said Friday it received a $65 million investment from the Treasury Department as part of the government's capital purchase program.

Under the agreement, First Financial sold $65 million in senior preferred stock to the Treasury, along with a warrant to buy up to $9.7 million in common stock at any time during the next 10 years.

"This is recognition of the fundamental strength of First Financial and it enhances our efforts to support economic development and expand banking activities in the markets we serve," said A. Thomas Hood, president and chief executive, in a statement. "This participation also provides flexibility for future growth."

As part of the government's $700 billion financial rescue package passed in September, the Treasury is pouring $250 billion into stock purchases of various institutions in an effort to encourage banks to resume normal lending.

First Financial Holdings operates 58 offices in the Charleston, S.C., metropolitan area.

Shares slipped 19 cents to $19.90 in afternoon trading.

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