SOURCE: First Financial Corporation

First Financial Corporation

April 29, 2013 11:00 ET

1st Quarter Results Reported for First Financial Corporation

TERRE HAUTE, IN--(Marketwired - Apr 29, 2013) - First Financial Corporation (NASDAQ: THFF) today announced results for the three months ended March 31, 2013. Net income increased 3.4% to $7.7 million compared to $7.4 million for the same period of 2012. Return on assets for the three months ended March 31, 2013 was 1.05% compared to 1.02% for the three months ended March 31, 2012.

Net interest income for the first quarter of 2013 was $26.2 million, a decrease of 3.65% from the $27.2 million reported for the same period of 2012. The net interest margin at March 31, 2013 was 4.09%, compared to 4.26% reported at March 31, 2012.

The provision for loan losses for the three months ended March 31, 2013 and March 31, 2012 was $3.0 million. The first quarter of 2013 saw recoveries of loan losses exceed charge-offs by $1.0 million.

Non-interest income for the three months ended March 31, 2013 and 2012 was $9.9 and $9.5 million, respectively, a 3.85% increase. Trust fees and income from electronic banking comprised most of the increase.

Non-interest expense for the first quarter of 2013 was $22.2 million compared to $23.4 million in 2012. This decrease of 5.21% is realized largely due to the efficiencies gained from the full transition of the operations of Freestar Bank that was acquired December 30, 2011.

Total loans at March 31, 2013 of $1.82 billion compare to the $1.85 billion reported during the same period a year ago. Deposits increased by $70.2 million to $2.35 billion. The allowance for loan losses increased 38.0% to $25.3 million from the $18.3 million at March 31, 2012. Net charge-offs for 2013 were down $4.4 million from 2012.

Book value per share was $28.43 at March 31, 2013, a 6.05% increase from the $26.81 at March 31, 2012. Shareholders' equity increased 6.6% to $378.4 million from $354.9 million on March 31, 2012.

First Financial Corporation is the holding company for First Financial Bank N.A. in Indiana and Illinois; The Morris Plan Company of Terre Haute; Forrest Sherer Inc. in Indiana; and FFB Risk Management Co. Inc. in Las Vegas, Nevada.

 
 
 
FIRST FINANCIAL CORPORATION     
CONSOLIDATED BALANCE SHEETS     
(Dollar amounts in thousands, except per share data)     
 
 
    March 31,     December 31,  
    2013     2012  
      (unaudited)   
ASSETS      
Cash and due from banks   $ 78,399     $ 87,230  
Federal funds sold     54,384       20,800  
Securities available-for-sale     769,949       691,000  
Loans:     -       -  
  Commercial     1,061,798       1,088,144  
  Residential     494,001       496,237  
  Consumer     266,744       268,507  
      1,822,543       1,852,888  
Less:                
  Unearned Income     (1,012 )     (952 )
  Allowance for loan losses     (25,272 )     (21,958 )
      1,796,259       1,829,978  
Restricted Stock     21,292       21,292  
Accrued interest receivable     11,622       12,024  
Premises and equipment, net     46,940       47,308  
Bank-owned life insurance     77,787       77,295  
Goodwill     37,612       37,612  
Other intangible assets     3,601       3,893  
Other real estate owned     7,752       7,722  
FDIC Indemnification Asset     1,770       2,632  
Other assets     57,585       56,622  
  TOTAL ASSETS   $ 2,964,952     $ 2,895,408  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Deposits:                
Non-interest-bearing   $ 454,935     $ 465,954  
Interest-bearing:                
  Certificates of deposit of $100 or more     211,529       213,610  
  Other interest-bearing deposits     1,683,312       1,596,570  
      2,349,776       2,276,134  
Short-term borrowings     39,952       40,551  
Other borrowings     114,608       119,705  
Other liabilities     82,233       86,896  
  TOTAL LIABILITIES     2,586,569       2,523,286  
                 
Shareholders' equity                
Common stock, $.125 stated value per share;                
  Authorized shares-40,000,000                
  Issued shares-14,516,113 in 2012 and 14,490,609 in 2012                
  Outstanding shares-13,307,498 in 2012 and 13,237,523 in 2012     1,809       1,808  
Additional paid-in capital     70,171       69,989  
Retained earnings     346,035       338,342  
Accumulated other comprehensive income (loss)     (8,925 )     (7,472 )
Less: Treasury shares at cost-1,208,615 in 2013 and 1,253,086 in 2012     (30,707 )     (30,545 )
                 
  TOTAL SHAREHOLDERS' EQUITY     378,383       372,122  
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 2,964,952     $ 2,895,408  
                   
                   
                   
 
FIRST FINANCIAL CORPORATION    
 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME    
(Dollar amounts in thousands, except per share data)    
 
 
    Three Months Ended  
    March 31,    
    2013     2012  
    (unaudited)     (unaudited)  
INTEREST INCOME:            
  Loans, including related fees   $ 23,454     $ 25,198  
  Securities:                
    Taxable     3,214       3,523  
    Tax-exempt     1,770       1,805  
  Other     504       623  
TOTAL INTEREST INCOME     28,942       31,149  
                 
INTEREST EXPENSE:                
Deposits     1,742       2,664  
Short-term borrowings     20       46  
Other borrowings     1,007       1,274  
TOTAL INTEREST EXPENSE     2,769       3,984  
                 
NET INTEREST INCOME     26,173       27,165  
                 
Provision for loan losses     3,021       2,956  
                 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES     23,152       24,209  
                 
NON-INTEREST INCOME:                
Trust and financial services     1,526       1,480  
Service charges and fees on deposit accounts     2,254       2,204  
Other service charges and fees     2,500       2,455  
Securities gains/(losses), net     4       (4 )
Insurance commissions     1,963       1,891  
Gain on sales of mortgage loans     963       925  
Other     667       560  
TOTAL NON-INTEREST INCOME     9,877       9,511  
                 
NON-INTEREST EXPENSE:                
Salaries and employee benefits     13,596       14,419  
Occupancy expense     1,522       1,417  
Equipment expense     1,501       1,282  
FDIC Insurance     557       428  
Other     5,023       5,874  
TOTAL NON-INTEREST EXPENSE     22,199       23,420  
INCOME BEFORE INCOME TAXES     10,830       10,300  
Provision for income taxes     3,137       2,857  
NET INCOME     7,693       7,443  
OTHER COMPREHENSIVE INCOME                
Change in unrealized gains/losses on securities, net of reclassifications     (2,778 )     70  
Tax effect     1,111       (28 )
      (1,667 )     42  
  Change in funded status of post retirement benefits     357       617  
  Tax effect     (143 )     (247 )
      214       370  
  TOTAL OTHER COMPREHENSIVE INCOME     (1,453 )     412  
  COMPREHENSIVE INCOME   $ 6,240     $ 7,855  
EARNINGS PER SHARE:                
  BASIC AND DILUTED   $ 0.58     $ 0.56  
Weighted average number of shares outstanding (in thousands)     13,300       13,223  
                 
                 
                 
               
               
               
Key Ratios   For the three months ended  
    March 31       March 31  
    2013       2012  
Return on average assets     1.05 %       1.02 %
Return on average common shareholder's equity     8.21 %       8.46 %
Average common shareholder's equity to average assets     12.79 %       12.04 %
End of period tangible common equity to tangible assets     11.53 %       10.88 %
Book value per share   $ 28.43       $ 26.81  
Tangible book value per share   $ 25.34       $ 23.68  
Risk-based capital - Tier 1     15.82 %       14.53 %
Risk-based capital - Total     16.97 %       15.35 %
Net interest margin     4.09 %       4.26 %
Efficiency Ratio     59.25 %       61.32 %
Net charge-offs to loans and leases     -0.23 %       0.73 %
Loan and lease loss reserve to loans and leases     1.39 %       0.99 %
Nonperforming assets to loans and leases     2.59 %       2.59 %
                   
                   
Asset Quality     For the three months ended  
      March 31         March 31  
      2013         2012  
Accruing loans and leases past due 90 days or more   $ 1,262       $ 3,362  
Nonaccrual loans and leases     38,132         36,794  
Other real estate owned     7,752         7,722  
Total nonperforming assets   $ 47,146       $ 47,878  
                   
                   
                   

Contact Information

  • For more information contact:
    Rodger A. McHargue
    (812) 238-6334