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Executives

D.B. Wright - VP, Corporate Secretary

Tom Hood - President & CEO

Joe Amy - CCO

Wayne Hall - EVP,CFO

Blaise Bettendorf - CAO

Analysts

Catherine Mealor - KBW

Mac Hodgson - Suntrust Robinson Humphrey

Cary Morris - Scott & Stringfellow

Christopher Marinac - FIG Partners

Allen Bach - Davenport & Company

First Financial Holdings, Inc. (FFCH) F2Q10 (Qtr End 09/30/10) Earnings Call April 27, 2010 2:00 PM ET

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the First Financial Holding, second quarter fiscal 2010 earnings conference call. During the presentation, all participants will be in a listen-only mode. And afterwards, we will conduct a question-and-answer session. (Operator Instructions).

And I would now like to turn the conference over to D. B. Wright, Vice President and Corporate Secretary. Please go ahead.

D.B. Wright - Vice President and Corporate Secretary

Thank you, Jennifer. Good afternoon and thank you for participating in our second quarter 2010 earnings conference call. Before we begin, I have several brief administrative items to address. You should have received our second quarter fiscal 2009 earnings release and supplemental information early today. For those who did not, those are available on our website at firstfinancialholdings.com. In addition to this teleconference call, we have a listen-only live web cast. This webcast will be available for the next 90 days. Those are live in archive webcast may be accessed via a link and again, that’s on our website at firstfinancialholdings.com. Our President and Chief Executive Officer Tom Hood will make opening remarks on our call today, Wayne Hall, Executive Vice President and Chief Financial officer, Joe Amy our Chief Credit Officer and Blaise Bettendorf, our Chief Accounting Officer will all be available for questions at the end and some will speak as well.

Before we begin, I need to remind you that during the course of this call, the company may make forward-looking statements about future events and future financial performance. Management’s plans, objective, goals for future operations, products or services, forecast of financial and other performance measures and statements about the company’s general outlook for economic and business conditions. You should not put undue reliance on any forward-looking statements which may speak only as of the date made. These statements are subject to numerous factors that could cause actual results to differ materially from those anticipated or projected. For a list of some these factors, please note the company’s forward-looking statement disclosure in our fiscal 2010 second quarter earnings release. I'll now turn the call over to Tom

Tom Hood

Thanks very much D.B and thanks to all of you on the call this afternoon. We’re very, very appreciative for, of your time and your interest in First Financial. I encourage you also to thoroughly review the second quarter earnings release if you’ve not already done so. As D.B. mentioned it’s available on our website. We’ll be taking questions at the end of the call. We’ll do our very, very best at that time to be as transparent as we possibly call and the management is always available for questions and comments. Today, we’ll provide you with some key results, transmarket details and review operations for the quarter. We reported a net loss for the quarter of $19.1 million or $1.15 per share. This is compared to a loss of $4.5 million last quarter and net income of $3.1 million, for the same period last year. Our results this quarter continue to be significantly impacted by the current recession, high levels of unemployment, lower real estate, values, higher home inventories, lower retail sales and increased problem assets.

While our markets have clearly suffered as a result of the recession, according to the Charleston Chamber of Commerce’s Centre for Business Research and the College of Charleston, School of Business and Economics, the outlook for 2010 is stable with expansion beginning the end of the year and gaining strength in 2011. We are encouraged by the slight improvements in South Carolina unemployment rates over the last two periods. But we recognized that the states’ economy remains fairly fragile. Unemployment in the counties in which we operate have shown a slight improvement over the past few months as well as Boeing's construction of the $750 million aircraft assembly operation for the 787 aircraft is well underway. This investment will create as I think we have reported in the past as many as 3,800 new direct jobs in the market.

This decision by Boeing is expected to significantly improve Charleston's economy over the next decade and attract thousands of additional jobs from suppliers and other support companies. Unfortunately, the commercial real estate market is expected to continue to decline through 2010, a retail sales in our primary market are focused to grow in both 2010 and 2011. Part of this increase is expected from a boost in our tourism sector from a new carnival cruise business that was announced recently.

Approximately 69 ships with 2000 visitors per week will be calling on the Charleston port. The economic impact of the carnival ships will be about $37 million per year. In addition, the Port of Charleston recently announced a new Asia service for China and South Korea and also announced a 24% increase in container volume gain from the period of March last year. We believe these current expansion plans along with interest in our markets will help with our recovery as we continue to work through these economic challenges. The Charleston real estate market continues to be one of the top real estate markets in the country. The losses for the quarter have been driven by higher loan loss provisions related to the continued stress on our loan portfolio resulting from economic and unemployment considerations discussed above.

Joe will discuss that in more detail and talk about the status of our loan portfolios shortly. Despite the negatives, we continue to be encouraged with the results of many of our core operating units. Our net interest margin is still a very strong 3.92% for the quarter, mortgage banking income continue to perform very well contributing $2.1 million for the quarter and revenue from our insurance agencies were $7.5 million or 15.9% of total revenue. Now Joe, our Chief Credit officer will review the credit trends for the second quarter results which has again been a very, very difficult quarter. Joe?

Joe Amy

The credit provisions from loan losses increased $20.6 million from the prior quarter which was primarily related to stress on the loan portfolio, most notably land and commercial real estate sectors. This deterioration led to an increase in our launch for total loan losses to $82.7 million or 3.17% of total loans outstanding. The allowance to non-covered loans which excludes the Cape Fear acquired loans is 3.46%. The non-accrual loans increased $26.9 million to $135.7 million driven by land loans of $17.6 million, the largest a $9.8 million sale to coastal development and a $3.4 million completed commercial construction project.

Net charge-offs for the current quarter were $36.7 million, up from $20.3 million for the prior quarter. The higher level of charge-offs is a reflection of the credit quality and collateral value deterioration which occurred during the quarter primarily in the land and commercial real-estate portfolios. The increase in commercial land charge-offs was mainly related to the deterioration in coastal community appraised land values. With the current economic conditions we continue to expect higher level of charge-offs and problem loans through the fiscal year end and possibly into fiscal 2011.

Positive trends were noted in other real estate and assets owned which ended the quarter down 42.7% from the link quarter to a total of $12 million. In addition at March 31, 2010, 39% of our real-estate owned was under a contract for sale. As disclosed in the prior quarter call, we have been performing special targeted reviews of our commercial and land portfolios. These reviews were an addition to our regular ongoing loan reviews and specifically focused on problematic sectors of our portfolio. The commercial and land portfolios account for 31% of total loans outstanding at March 31 2010 or $815 million.

Included in this total is a $153 million of covered assets from our Cape Fear acquisition. These assets carry significantly less risk due to the FDIC loss share agreement. As included in the total are $83 million of non-covered individual lot loans which are subject to our normal review processes and considered to have a less exposure than the commercial land loans and were excluded from the targeted reviews. Thus the balance of non-covered loans in the commercial categories addressed in our target reviews totaled $579 million at March 31st 2010.

As we have previously disclosed during our second quarter, we completed the reviews of commercial land and A&D loans and appropriately charged-off or reserve for losses in that quarter. We also commenced in the second quarter and are in the process of completing a targeted review of the commercial real estate and commercial business loans in excess of $1 million. As of the current date, we have reviewed $316 million or 55% of the total commercial categories including 85% of the commercials loans in excess of $1 million. Prior to the ending of the current quarter, we will complete our targeted reviews and have covered a 100% of commercials loans in excess of $1 million. Our targeted reviews will have resulted in a total coverage of approximately 62% or $358 million of the defined commercial portfolios. The remaining balance of the commercial portfolio consists of performing loans under $1 million dollars which are monitored on an ongoing basis as part of our regular loan review process.

In addition to the targeted loan reviews, we continue our ongoing monitoring of the loan portfolio. We have a monthly problem loan review process which covers all commercial loans greater than $200,000 and past due 30 days and all criticized and classified loans greater than $500,000. Action plans to address the credit problems are presented, approved and monitor. Some of the loans covered in the ongoing problem loan reviews included commercial business, real estate and land loans. Thus these categories with higher risks are having multiple looks to ensure that the valuations are appropriate given current information. I will now turn this over to Wayne for a discussion of the financial results for the quarter.

Wayne Hall

Thanks Joe. First let’s review our net interest income. For the current quarter, our margin remained strong at 3.92% compared with our link quarter of 3.94% and is 28 basis points higher than the same quarter last year. Net interest income was $31.5 million for the quarter, down $1.4 million from the link quarter. This variance is mainly due to decline in average earning assets of $54.4 million related to the investment prepayments and loan payments and charge-offs. In addition, the level of average non-accrual loans which increased approximately $27.6 million from the prior quarter average had a negative impact on our average yield and net interest margin.

The yield on earning assets declined 10 basis points of which six basis points was attributable to the increase in non-accruals. The cost of funds remained flat to the link quarter. While we believe it may still be sometime before interest rates increase, we are continually managing our exposure to interest rate risk and work to structure our balance sheet to minimize the risk to earnings. We are currently slightly liability sensitive such that we may realize lower net interest income in a rising rate environment. Core non-interest income, exclusive of impairment on investment securities and gains on disposition of assets was $15.7 million, an increase of $1.4 million from the link quarter total of $14.3 million.

Insurance revenues of $7.5 million for the quarter are up 38% or $2.1 million over the link quarter and year-over-year are up $536,000. Our insurance agencies continue to provide solid contributions to core earnings consistently accounting for over 40% of total non-interest income and totaling 15.9% of total revenues for the second quarter. Offsetting the increase from insurance revenues are declines in mortgage banking income related primarily to lower volume of loans sold. Lower deposit service charges and writedowns in value of OREO properties. We did experience a positive impact from our mortgage servicing hedges during the quarter of $351,000. During the second quarter, we reported an other than temporary impairment of $1.8 million. This chart was primarily related to one corporate security totaling $1.1 million that was fully written off due to credit-related impairments.

Our total CDO portfolio at its height was only $12.9 million and we have written it down through impairment changes to $4.4 million or 34% of original par value. Now CDOs represent less than 1% of our investments. The bulk of our investment portfolio, nearly 30%, consist of private label CMOs of which 65% of these are rated AAA, none with loans originated after 2005. Operating expenses, exclusive of the contribution expense for the Florence bank branch in the first quarter totaling $1.2 million increased $1.6 million from the prior quarter. Majority of the increase was the $1.3 million increase in salaries and employee benefits. This is primarily due to higher health insurance and claims cost for the quarter of $549,000, a non-recurring settlement with FDIC for employee costs of the Cape Fear acquisitions totaling $207,000, higher insurance producer commissions and increased unemployment taxes for the new calendar year.

Other significant changes were a higher legal fees of $143,000 and increased quarterly FDIC assessment of $388,000. I’d like to finish with the discussion of the capital. As of March 31 2010 we are reporting consolidated tangible common equity of 6.93%. In addition, our thrift subsidiary, First Federal continues to be considered well capitalized based on regulatory definitions. Core capital was 7.74%, tier one was 9.83% and total risk based capital was 11.01% at the second quarter end.

In addition we currently have approximately $60 million of liquid assets available at the holding company that will be downstreamed to the thrift, increasing its capital levels. Finally with regard to our SCAP analysis, we are planning on updating it once Joe completed the target reviews of loans and we have updated to our forecast of charge-offs and provision for the next 12 months.

I’ll now turn the floor back over to Tom.

Tom Hood

Thanks, Wayne and Joe. Outlook, we expect that our net interest margin will remain in the upper 300s, we also believe credit quality will continue to be under stress, pressure as we expect the current difficult economic environment will not really start improving until late in 2010 and early 2011. We continue to demonstrate very strong financial performance from our core businesses, our pretax, pre-provision earnings have increased continuously throughout this credit crisis and will leave us I believe with a very, very sound gripping of fundamentals. Once the credit issues are behind us, our pretax provision earnings for the first six months of fiscal 2010 were $32 million which is a 16% increase over the same period last year. This is certainly indicative of our core earnings driven by a very strong net interest margins and significant contributions from non-spread revenues, particularly insurance, mortgage banking, wealth management revenues combined with we believe strong cost control initiatives. All of those have created strong foundation to position us for great success when the credit crisis is behind us.

I know that we have discussed this already, but we are very, very interested in bidding on additional FDIC-assisted transactions, acquisitions. The Cape Fear transaction that we completed about a year ago now was extremely successful for our company and we are really anxious to participate again in one of these transactions particularly in particular markets where we have a strong affinity to the franchise and the specific geographic area.

We are particularly interested and I think we have commented on this in the past in the Savannah market place, Jacksonville Florida market place, upstate South Carolina and market on as one of those top markets in the United States, the Raleigh-Durham, North Carolina market. Those markets would compliment we think in a great way our existing markets along the coast and North and South Carolina. As to loan growth it’s very, very difficult and I think all bankers are having some difficulty really trying to pen down loan growth in the future. We were anxiously looking forward to making loans in all of our market places.

The present interest rate environment for mortgage loans I think will continue to be positive for our mortgage banking operations, commercial and other lending as much more uncertain and businesses continue to be hesitant about expanding in this uncertain economic environment. We are hopeful that some of the announcements in the past week relatively positive in terms of consumer confidence and so forth that maybe that’s a shorter timeframe to being out there, making loans to our markets again. We are optimistic about First Financial’s future as we believe the strength of our management team and staff will allow us to emerge as a much stronger company after this credit event.

We continue to expand our distribution network, looking for opportunities to expand service to all of the people in our markets. We are also positioning ourselves appropriately by investing in technology and human capital. We’ve made some terrific ads in our management team. We are very thankful for our very loyal shareholders and many supporters. So I think that completes our formal remarks and I think we are ready to take any particular questions you might have.

Question-and-Answer session

Operator

(Operator Instructions) Our first question comes from the line of Catherine Mealor with KBW.

Catherine Mealor - KBW

Thank you, Joe, for all of your color on the office you're doing on the loan portfolio. I wanted to ask you a few questions on that. My first is of the land portfolio and the non-performing loans of about $63 million, how far have they been written down since the original principle balance?

Joe Amy

I am sorry I don’t have the exact ratio from when they were originally booked and their original appraisal to the appraisal to-date. Anything I will give you would be a guess, but they are written to the accurate number.

Catherine Mealor - KBW

Maybe another way to say is what kind of value writedowns are you seeing on your land portfolio. I mean are you seeing these new appraisals coming in at $0.30 on the dollar, $0.50 on the dollar, $0.70 on the dollar?

Joe Amy

I will just give you a couple of examples and again sweeping statements are always dangerous, especially because of the specific character of the land being appraised, but it’s not uncommon to see on appraisal that was renewed in a year for a 30% drop in the land value, especially on some of the coastal properties that we've seen. We’ve been trying to be more frequent in our appraisals to be more accurate and the accurate values are what we have on today.

Catherine Mealor - KBW

So I guess, I'm trying to get of your current land non-performing loans, would you say most of the charge-offs have already been taken? Or would you leave or are there additional charge-offs that you think will continue to come over the next couple of quarters, just in that portfolio particularly?

Joe Amy

I think most of the charge-offs, we have taken into the value that we have one thing and I believe is the correct value. We are seeing anecdotally some slowing up and I say anecdotally because the impact of the Boeing construction here has been a very favorable and positive impact on some land values, but again that’s an anecdotal comment as opposed to be and truly reflected in individual appraisals. I hope they have more positive information on that as we go forward. I do believe we are certainly if not at, but nearing stabilized level.

Catherine Mealor - KBW

And my last question is, in light of your analysis, would you say that you think we've reached a peak in non-performing loans? Or at least we may reach a peak next quarter once, you finish the commercial real estate portfolio?

Joe Amy

I am hoping to have a firm and positive answer to that when we finish the review.

Operator

Our next question comes from the line of Mac Hodgson in Suntrust Robinson Humphrey.

Mac Hodgson - Suntrust Robinson Humphrey

Just kind of following up on those questions related to some of the reviews. Joe, as it relates to the targeted reviews and commercial real estate and business loans greater than a $1 million, what specifically is the process? Are you going in, obviously getting new appraisals in every case, how about for business loans and then when you make an assessment on a potential loss, you mentioned kind of writing down to that current values. Are you taking it down to current values less obviously some sort of discount for selling commissions and things like that?

Joe Amy

With the real-estate, if the loan is real-estate collateralized, that’s obviously on the appraisal process and the valuation, impaired asset judge but stepping back to your primary question as least as I understood it. For the review process, we will collect up to date financial information on whatever project we are reviewing plus all the guarantors involved get a firm and complete look. A global cash flow look at the guarantors and they are willing to service the debt. And that of course that’s one of the primary considerations and how we risk rate and evaluate the credit risks where we find deficiencies we will also. We will make certain we have an up to-date appraisal to evaluate what our secondary source of repayment would be in the event the primary fails.

Mac Hodgson - Suntrust Robinson Humphrey

How is this review going so far this quarter? I think you said you'd done 85%?

Joe Amy

Over the $1 billion we are already through 85%, okay and remember we have monthly what I call the problem asset review process which will be looking at and I gave you the dimensions, any past due $200,000 in principal amount and 30 days past due will be looked at monthly and all criticized classified loans over $500,000. This gives us a good cross section of the problems. The focus of the meeting is, hope we’ve already identified the problems, but then take what the steps and the action plan are to correct the problems.

Mac Hodgson - Suntrust Robinson Humphrey

Just regard to the Company's commentary on the fact that provisions and charge-offs will remain elevated through 2010. I would have thought last quarter's provision and charge-offs were elevated. I would call this quarter's very elevated. And I'm just trying to get a sense, and if you feel like a bulk of this is behind you. Obviously it's tough for us to predict where this is going to go, but just trying to get a sense of the magnitude, and where you think provisions can be in charge-offs in the near term.

Wayne Hall

Well Mac we are not saying it is going to be this quarter, we are just saying this can be continued to be elevated which is higher than we were expected at normal environment. I think when Joe gets finished with his review which as he mentioned he is quite a bit down the road on that one we will have a better feel. I think what we are looking for here is for delinquencies to start to trend downward..

As these things happen, delinquencies moving to non-accruals, non-accruals moving to charge offs. So as we start to see those things trend and I guess the good news is and any of these numbers and the delinquencies actually drop this quarter. So we are hoping, one quarter does not make a trend but we will be hopeful that we will be able to see that continue and if it does continue. I think we can then expect to anticipate charge-offs to start lower as well.

Tom Hood

And I do think we’ve had some good news in the market place and it clearly has impacted retail sales in the market place. There is an expectation I believe that people feel more favorable about potentially being involved in some of these transactions and buying some of these properties. As we indicated in the call, a very high percentage of the real estate owned that’s on the books is already basically spoken for so.

Mac Hodgson - Suntrust Robinson Humphrey

Maybe just one last one. Wayne, just to clarify, you said that the $60 million of liquid assets at the holding company will be or has been downstreamed in?

Wayne Hall

Is available to be downstreamed.

Mac Hodgson - Suntrust Robinson Humphrey

I know this is not a near-term event, but when the time comes, for you all to exit, the Treasury's investment in TARP, or as it is TARP, how do you anticipate getting out of that?

Wayne Hall

Well I think as the time we will have to evaluate options. You know right now pricing is not favorable maybe for some closing type preferred so when we are ready to do that it maybe more attractive. We may have had generated enough capital at that point to just pay it back without having to go to the capital markets. And the other option is we can always go and raise additional capital. So I think it will depend on when we are ready to do that, what is the most favorable instrument to go into?

Operator

Our question comes from the line of Cary Morris with Scott & Stringfellow.

Cary Morris - Scott & Stringfellow

Just a couple of questions, and just a follow-up on Catherine, what she said and Joe, you had mentioned, I think, 39% of the REO was under contract?

Joe Amy

Yes

Cary Morris - Scott & Stringfellow

Can you give us anecdotally some information with regards to your pricing and the price discovery with regards to that REO?

Joe Amy

The sales price in the process?

Cary Morris - Scott & Stringfellow

Yes, what you're finding when you sell that REO.

Joe Amy

Well as a bank seller, there is already an implied discount. So we recognize that obviously in the process and reflect that in our listing price and we will list things at the most appropriate price with quite a bit of experience with that in getting good information in terms of where things are trading. Our asset resolution unit is very active in the area in terms of making certain that we’re putting it on the market at the appropriate price. And if it doesn’t sell within a reasonable period of time, we’ll look at auction opportunities and we’ve auctioned a fair amount of the more problematic things. I’d have to say we’ve recently considered perhaps using the auction front end as a possible asset resolution technique.

Cary Morris - Scott & Stringfellow

And that's really what my question was. I wanted to know about how long it had been on the markets, were you able to get rid of them easy, or are you going through an auction process?

Joe Amy

I walk through the steps and each property again is different. And we’ve taken some to auction in the latter stages of marketing. By then we have a definite price in which we are confident that the reserve price we use.

Cary Morris - Scott & Stringfellow

I don't see it broken out here, your REO expense for the quarter?

Blaise Bettendorf

We had for the quarter, net losses on OREO sales of $640,000, we had OREO expense of $369,000 and the largest item in that is the writedowns of value based on current appraisals, was just under $1.1 million so our total OREO expenses for the quarter was $1.9 million compared to $1.6 million for the first quarter of the year.

Operator

(Operators Instructions). Our next question comes from the line of Christopher Marinac with FIG Partners.

Christopher Marinac - FIG Partners

Just extending on Cary's question, do you have any thoughts about whether the OREO writedowns and loss combined, the 1.1, should we experience any change in that one way or the other next quarter, or is it too early to tell?

Joe Amy

I think it’s probably too early to tell. Again, we managed towards maximizing the return that we can’t on the portfolio and the appraisal process as you heard Blaise explained and as I said before the appraiser isn’t necessarily our friend in this process.

Wayne Hall

But we should have the activity certainly in single family. So I think we’ve done a pretty good job with our own existing staff, that have got a lot of experience obviously, working in the single family area and disposing of those properties. So I think we are pretty confident that we’ll get good results and have been getting good results from the single family area.

Christopher Marinac - FIG Partners

I guess extension I think we all have on this call is for the level of classifieds relative to MPAs. Are the level of classifieds rising in proportion, to what we're seeing in the MPAs as we're going through the study? Or are the classifieds acting and behaving differently than what we're seeing on the past due front?

Joe Amy

I’d say the trend lines on the criticized classified has been pretty much similar.

Christopher Marinac - FIG Partners

So from a standpoint of seeing any plateau of classifieds, we would expect to see that first, I don't want to suggest that that's what you're seeing, unless that's true.

Joe Amy

I think on a normal cycle you’d expect to see that first plateauing, yes.

Christopher Marinac - FIG Partners

But it has not happened just yet.

Joe Amy

Again we haven’t fully finished the review. I have to say it’s slowing.

Christopher Marinac - FIG Partners

And then just kind of maybe a little bit of transition question, this has to do with the securities portfolio. Could you remind us kind of what your durations look like and how you'd like to position that going forward, if you're doing anything materially different in the near term with that?

Wayne Hall

I don’t think we’re going to do anything different. The problem we facing right now is they are running off and we’re not being able to place them with securities with what we’re used to getting on the yields. What we are also finding is that the pieces of that we can’t find tend to be smaller, we typically buy $15 million to $20 million pieces and what we’re finding now is more in the $5 million to $10 million. So we have to buy more of them to get equivalent volume so we have a little trouble there. That might be we have changed, we may have to go to smaller pieces, but historically we’ve done in the $15 million to $20 million and we’ve had trouble finding those, but other than that, I think we’re expecting our portfolio quality wise, duration wise remain about the same.

Operator

Thank you, our next question comes from the line of Allen Bach with Davenport & Company.

Allen Bach - Davenport & Company

The balance sheet has obviously continued to contract quarter-over-quarter, is it safe to assume that that trend should continue going forward?

Tom Hood

Well, we’re hopeful it won’t continue. I mean what driving it actually is like a loan demand, that’s the Tom’s point earlier. We’re starting to see some improvement in the market and we certainly are hopeful that several of the economic development issues that have recently taking place here will improve the demand from small businesses, we think that’s why we have a niche. So we’re hopeful of that.

The other piece is as I just mentioned while going on the investments, it’s little more difficult right now to replace the run off that we’ve been experiencing. But we are hopeful that we just may change our strategy a little bit and as I mentioned to start buying smaller pieces and larger ones, but I think what’s really going to drive that change is start seeing long demand.

Once we get through this credit crisis we won’t have also the write-offs that we experienced in the last couple of quarters.

Wayne Hall

Sure. I think there’s some very, very good things happening in the marketplace. Aside from the Boeing initiative which is absolute huge probably the largest development around the country, you have this wind turbine initiative Clemson, and others now basically combining to develop this. This could be many more jobs than the Boeing jobs. So I think there’s a real opportunity particularly in our primary market to look at a more normal marketplace because of the potential of new jobs in the marketplace.

So we’re very anxious about that. Our position in the marketplace is that we’re very close to number one place in the marketplace and we expect to benefit from the growth of this marketplace and the success in this marketplace. So we’re very, very positive on the marketplace and the opportunity to eventually be up there lending money in successful marketplaces.

Tom Hood

And just to add to that, talking about the wind turbine project, we just recently had a German company announce that they will moving an operation here and what they build is partial wind turbine for the large wind turbines that will be developed so they actually will be in operation in July.

Operator

And we have no further questions at this time.

Tom Hood

Thank you very much. Obviously, it’s indicated that in the past if you have questions, if there’s an opportunity to bring more clarity to our results and the information that we made available, we’re happy to do so, we’re anxious to do so. And we really appreciate your interest. There were quite a number of very important people on the call this afternoon. We really appreciate your interest in First Financial. We’re excited about the future, obviously, we’re working hard on moving from where we are today in terms of credit event and where we will be tomorrow with a very successful company. So I appreciate again your attendance and your interest and again if there’s a any other information we can try to provide, we’ll certainly try to do that. Thank you so much for the being on the call today.

D.B. Wright

Thank you Jennifer.

Operator

Thank you. Ladies and gentlemen, that does conclude the conference call. We thank you for your participation and ask that you please disconnect your lines.

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