Sterne Agee Comments on FFCH's Recent Sale

According to a recent report from Sterne Agee, First Financial Holdings FFCH recently announced the sale of its insurance subsidiary to Hub International Group. The insurance subsidiary sold for $38 million, which Sterne Agee views as reasonable and Sterne Agee maintains a Neutral rating on FFCH post sale. In the report, Sterne Agee said, "While the deal will entail a near-term core earning power reduction, it decreases the near-term risk of a below TBV offering which we view as the more pertinent consideration. Management plans to offset foregone insurance income over time with core bank growth." FFCH closed yesterday at $10.00.