FIRST FINANCIAL HOLDINGS, INC.
REPORTS FIRST QUARTER RESULTS

Charleston , South Carolina ( January 19, 2006) – First Financial Holdings, Inc. (“Company”)(NASDAQ: FFCH) today reported results for the first quarter of the fiscal year ended September 30, 2006. For the quarter ended December 31, 2005, the Company reported diluted earnings per common share were $.50 compared with diluted earnings per common share of $.47 for the comparable quarter ended December 31, 2004. Net income was $6.1 million for the quarter ended December 31, 2005 compared with $5.9 million for the comparable quarter of fiscal 2005.

President and Chief Executive Officer A. Thomas Hood commented, “We are pleased with our first quarter’s results and are off to a great start for fiscal 2006. I want to compliment our staff on the execution of several strategic initiatives, which included additional site selections for future offices and the introduction of a new higher yielding money market account. Despite 200 basis points of Federal Reserve rate increases over the calendar year ended December 2005, on a linked quarter basis, the net interest margin increased this quarter by four basis points to 3.34% from 3.30% for the quarter ended September 30, 2005 and has decreased four basis points from 3.38% for the comparable quarter ended December 31, 2004. The linked quarter’s net interest margin increase is attributable to our ability to maintain deposit pricing discipline and to our continued balance sheet restructuring from lower yielding one to four family loans into commercial and consumer loans. Compared with the quarter ended September 30, 2005, the average yield on earning assets increased by 24 basis points to 6.07% while the average rate on costing liabilities increased by 19 basis points to 2.74%. Net interest income increased by $266 thousand to $19.4 million for the quarter ended December 31, 2005 compared with $19.1 million for the quarter ended December 31, 2004. As many other financial institutions are experiencing, the current interest rate environment has been particularly challenging, resulting in aggressive competitive pricing on deposits as well as on lending products.”

Hood continued, “Total non-interest revenues increased $311 thousand in the quarter ended December 31, 2005 to $12.5 million compared with the quarter ended December 31, 2004. Gains on property sales were $1.6 million in the previous quarter ended December 31, 2004 and the Company also received a judgment settlement of $1.3 million during the quarter ended December 31, 2004. The absence of these types of items during the current quarter, however, was more than compensated for with our strong growth in revenues in a number of key areas. Deposit account fees increased $1.8 million, or 61.5%, to $4.8 million in the current quarter from $2.9 million in the comparable quarter in fiscal 2005. On a linked quarter basis, deposit fees increased $506 thousand, or 11.9%. The increase in deposit fees during the current quarter is primarily attributable to the successful introduction and implementation of a courtesy overdraft privilege program in July 2005. Insurance revenues also increased to $4.2 million during the current quarter compared to $4.0 million during the same period in fiscal 2005. Income from loan servicing operations increased to $882 thousand during the current quarter from $315 thousand for the comparable quarter ended December 31, 2004. The increase in loan servicing operations was principally a result of an impairment recovery of $424 thousand related to improved valuations of the Company’s originated mortgage servicing rights.”

Total non-interest expenses increased by $735 thousand, or 3.5% to $21.5 million for the quarter ended December 31, 2005 compared with the quarter ended December 31, 2004. Salaries and employee benefits increased by $549 thousand, partially attributable to the opening of several new offices since December 2004 and from increases for incentive compensation accruals, health and other benefit programs. Most of the other significant increases in expenses during the quarter ended December 31, 2005 are attributable to increased costs of $525 thousand related to the overdraft privilege program and higher expenses related to overall growth in customer services and accounts supported. Absent from the current quarter’s expenses is a $964 thousand prepayment charge incurred by the Company in connection with the early repayment of a $15 million FHLB advance during the same period in 2004. Excluding this expense one year ago, total non-interest expenses increased 8.6% in the quarter ended December 31, 2005 compared with the quarter ended December 31, 2004.

The Company’s provision for loan losses was $900 thousand in the quarter ended December 31, 2005, decreasing by 30.8% from $1.3 million during the comparable quarter ended December 31, 2004. The decrease was principally related to lower historical charge-off trends. The Company’s reserve coverage of non-performing loans increased to 226.2% at December 31, 2005 compared to 188.5% one year ago and declined from 252.72% at September 30, 2005. Annualized loan net charge-offs as a percentage of net loans were 0.19% for the quarter ended December 31, 2005 compared with 0.31% for the comparable quarter a year ago and 0.27% for the quarter ended September 30, 2005. Problem assets, which include problem loans as well as properties acquired, as a percentage of total assets, was 0.33% at December 31, 2005 compared to 0.49% one year ago and 0.29% at September 30, 2005.

“We have been extremely pleased with growth in deposits of 12.4% over the past twelve months, and are pleased to report that deposits also increased at an annualized rate of 8.2% from the September 2005 quarter. Strategic areas of focus on core deposits and household growth resulted in the introduction of several new successful campaigns for deposit products during the current quarter. Total loan balances have grown by 4.9% since December 31, 2004, however, in the past quarter, on an annualized basis, loans increased by 9.1%. We continue to place an emphasis on increasing the consumer and commercial loan portfolios while selling the fixed rate portion of our retail mortgage originations. We continue to remain confident about the growth of our markets and have plans to continue to open additional retail sales offices. During the first quarter of fiscal 2006 we opened our ninth Wal-Mart in-store location in Georgetown. An additional location in Charleston is planned for opening in March of 2006 and other commitments for additional locations have been made. Our focus remains on taking advantage of the very favorable conditions in our major markets.” Hood concluded.

As of December 31, 2005, total assets of First Financial were $2.6 billion, loans receivable totaled $1.9 billion and deposits were $1.7 billion. Stockholders’ equity was $171 million and book value per common share totaled $14.21 at December 31, 2005.

First Financial is the holding company of First Federal, which operates 51 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.

NOTE: A. Thomas Hood, President and CEO of the Company, and Susan Baham, Executive Vice President and CFO of the Company, will discuss these results in a conference call at 10:00 AM (ET) tomorrow, January 20, 2006. The call can be accessed via a webcast available on First Financial’s website at www.firstfinancialholdings.com.

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 due to a wide range of factors including, but not limited to, the general business environment, general economic conditions nationally and in the State of South Carolina, interest rates, the South Carolina real estate market, the demand for mortgage loans, 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, including the Annual Report on Form 10-K for the fiscal year ended September 30, 2005. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on these statements.

For additional information about First Financial, please visit our web site at www.firstfinancialholdings.com or contact Susan E. Baham, Executive Vice President and CFO, (843) 529-5601 .

FIRST FINANCIAL HOLDINGS, INC.
Unaudited Consolidated Financial Highlights
(in thousands, except share data)