First Financial Holdings Inc. in Charleston, S.C., said Thursday that earnings for its fiscal 2008 first quarter fell 50%, to $2.9 million, because of costs associated with a new early-retirement program and higher loan-loss reserves.
Earnings per share for the quarter, which ended Dec. 31, fell 49%, to 25 cents, missing the average of analysts' estimates by 7 cents, according to Thomson Financial.
The $2.7 billion-asset parent of First Federal Savings and Loan Association said the early-retirement program, which it offered in October to full-time employees, cost it $1.76 million for the quarter before taxes.
Twenty-six employees, who met certain age and service criteria, accepted the package. The company expects to save $1 million in fiscal 2008.
Its loan-loss reserves were $3.25 million, 71% more than the previous quarter. First Financial said it increased the provision in anticipation of losses in the Myrtle Beach market.
In late trading Thursday, First Financial's shares were up 1%, to $22.21.
