First Financial Holdings plans $50M stock sale

First Financial Holdings to sell $50 million in common stock; could repay TARP money

• On 9:37 am EDT, Monday September 21, 2009

CHARLESTON, S.C. (AP) -- First Financial Holdings Inc. said Monday it plans to sell $50 million in common stock.

Based on Friday's closing price, First Financial would sell about 2.8 million shares of common stock as part of the offering.

The regional bank plans to use the money for general corporate purposes, which could include the repayment of government bailout funds it received last year as part of the Treasury Department's $700 billion financial rescue program.

First Financial received $65 million as part of the government's Troubled Asset Relief Program, which was launched last fall at the peak of the credit crisis in an effort to restart stagnant credit markets.

Underwriters will have a 30-day option to purchase up to $7.5 million in additional shares to cover over-allotments.

First Financial shares fell 75 cents, or 4.3 percent, to $16.84 in morning trading Monday.