SOURCE: First Financial Corporation

First Financial Corporation

April 29, 2014 13:00 ET

First Financial Corporation Reports 1st Quarter 2014 Results

TERRE HAUTE, IN--(Marketwired - Apr 29, 2014) - First Financial Corporation (NASDAQ: THFF) today announced results for the three months ended March 31, 2014. Net income of $7.8 million increased 1.8% compared to $7.7 million for the same period of 2013. Return on assets for the first quarter of 2014 was 1.03% compared to 1.05% for the three months ended March 31, 2013.

Net interest income for the first quarter of 2014 was $27.1 million, a 3.7% increase, from the $26.2 million reported for the same period of 2013. The net interest margin at March 31, 2014 was 4.10%, compared to 4.09% reported at March 31, 2013.

The provision for loan losses for the three months ended March 31, 2014 was $1.96 million compared to the $3.02 million provision for the first quarter of 2013. Net charge-offs were $1.39 million for the first quarter of 2014 compared to a net recovery in 2013 of $1.04 million.

Non-interest income for the three months ended March 31, 2014 and 2013 was $10.1 million and $9.9 million, respectively. Gain on sale of loans decreased $587 thousand while the income from service charges on deposits and other service fees increased by virtually the same amount.

Non-interest expense for the three months ended March 31, 2014 was $23.7 million compared to $22.1 million in 2013. The expansion of the branch network in the last half of 2013 resulted in increased occupancy and equipment expense as well as a 4% increase in full-time equivalent employees when comparing the first quarters of 2014 and 2013.

Total loans at March 31, 2014 stood at $1.78 billion compared to the $1.82 billion reported the same time a year ago. Deposits increased by $157.2 million to $2.5 billion at March 31, 2014 from March 31, 2013. Reduced demand for loans allowed for the reduction of Federal Home Loan Bank borrowings by $76.4 million during this period.

Book value per share for the first quarter of 2014 was $29.90, a 5.16% increase from $28.43 at March 31, 2013. Shareholders' equity increased 5.54% to $399.3 million from $378.4 million on March 31, 2013.

First Financial Corporation is the holding company for First Financial Bank N.A. in Indiana and Illinois, The Morris Plan Company of Terre Haute and Forrest Sherer Inc. in Indiana.

   
CONSOLIDATED BALANCE SHEETS  
(Dollar amounts in thousands, except per share data)  
   
    March 31,
 2014
    December 31,
 2013
 
    (unaudited)  
ASSETS                
Cash and due from banks   $ 83,988     $ 71,033  
Federal funds sold     9,791       4,276  
Securities available-for-sale     921,165       914,560  
Loans:                
Commercial     1,037,518       1,042,138  
Residential     481,663       482,377  
Consumer     265,428       268,033  
      1,784,609       1,792,548  
Less:                
Unearned Income     (635 )     (1,120 )
Allowance for loan losses     (20,408 )     (20,068 )
      1,763,566       1,771,360  
Restricted Stock     21,057       21,057  
Accrued interest receivable     11,451       11,554  
Premises and equipment, net     50,655       51,449  
Bank-owned life insurance     79,444       79,035  
Goodwill     39,489       39,489  
Other intangible assets     4,656       4,935  
Other real estate owned     4,806       5,291  
FDIC Indemnification Asset     754       1,055  
Other assets     41,720       43,624  
TOTAL ASSETS   $ 3,032,542     $ 3,018,718  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Deposits:                
Non-interest-bearing   $ 535,333     $ 506,815  
Interest-bearing:                
Certificates of deposit of $100 or more     171,165       179,177  
Other interest-bearing deposits     1,800,516       1,772,799  
      2,507,014       2,458,791  
Short-term borrowings     35,710       59,592  
Other borrowings     38,214       58,288  
Other liabilities     52,275       55,852  
TOTAL LIABILITIES     2,633,213       2,632,523  
                 
Shareholders' equity                
Common stock, $.125 stated value per share;                
Authorized shares-40,000,000                
Issued shares-14,538,132 in 2014 and 14,516,113 in 2013                
Outstanding shares-13,355,272 in 2014 and 13,343,029 in 2013     1,812       1,811  
Additional paid-in capital     71,315       71,074  
Retained earnings     364,914       357,083  
Accumulated other comprehensive income (loss)     (8,551 )     (13,969 )
Less: Treasury shares at cost-1,182,860 in 2014 and 1,173,084 in 2013     (30,161 )     (29,804 )
TOTAL SHAREHOLDERS' EQUITY     399,329       386,195  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 3,032,542     $ 3,018,718  
                 
                 
   
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME  
(Dollar amounts in thousands, except per share data)  
   
    Three Months Ended
 March 31,
 
    2014   2013  
    (unaudited)   (unaudited)  
INTEREST INCOME:              
Loans, including related fees   $ 22,218   $ 23,454  
Securities:              
Taxable     4,444     3,214  
Tax-exempt     1,746     1,770  
Other     416     504  
TOTAL INTEREST INCOME     28,824     28,942  
INTEREST EXPENSE:              
Deposits     1,290     1,742  
Short-term borrowings     14     20  
Other borrowings     378     1,007  
TOTAL INTEREST EXPENSE     1,682     2,769  
NET INTEREST INCOME     27,142     26,173  
Provision for loan losses     1,960     3,021  
NET INTEREST INCOME AFTER PROVISION              
FOR LOAN LOSSES     25,182     23,152  
NON-INTEREST INCOME:              
Trust and financial services     1,489     1,526  
Service charges and fees on deposit accounts     2,484     2,254  
Other service charges and fees     2,839     2,500  
Securities gains/(losses), net     --     4  
Insurance commissions     1,913     1,963  
Gain on sales of mortgage loans     376     963  
Other     1,010     667  
TOTAL NON-INTEREST INCOME     10,111     9,877  
NON-INTEREST EXPENSE:              
Salaries and employee benefits     14,096     13,596  
Occupancy expense     1,925     1,522  
Equipment expense     1,658     1,501  
FDIC Expense     487     557  
Other     5,539     5,023  
TOTAL NON-INTEREST EXPENSE     23,705     22,199  
INCOME BEFORE INCOME TAXES     11,588     10,830  
Provision for income taxes     3,757     3,137  
NET INCOME     7,831     7,693  
OTHER COMPREHENSIVE INCOME (LOSS)              
Change in unrealized gains/losses on securities, net of reclassifications and taxes     5,303     (1,667 )
Change in funded status of post retirement benefits, net of taxes     115     214  
COMPREHENSIVE INCOME (LOSS)   $ 13,249   $ 6,240  
PER SHARE DATA              
Basic and Diluted Earnings per Share   $ 0.59   $ 0.58  
Weighted average number of shares outstanding (in thousands)     13,349     13,300  
               
               
       
Key Ratios   For the Three Months Ended  
    March 31,     March 31,  
    2014     2013  
Return on average assets     1.03 %     1.05 %
Return on average common shareholder's equity     7.90 %     8.21 %
Average common shareholder's equity to average assets     13.08 %     12.79 %
End of period tangible common equity to tangible assets     11.89 %     11.53 %
Book value per share   $ 29.90     $ 28.43  
Tangible book value per share   $ 26.60     $ 25.34  
Risk-based capital - Tier 1     16.63 %     15.82 %
Risk-based capital - Total     17.56 %     16.97 %
Net interest margin     4.10 %     4.09 %
Efficiency Ratio     62.30 %     59.25 %
Net charge-offs to average loans and leases     0.31 %     (0.23 )%
Loan and lease loss reserve to loans and leases     1.14 %     1.39 %
Nonperforming assets to loans and leases     1.44 %     2.63 %
                 
                 
Asset Quality   For the Three Months Ended  
    March 31,     March 31,  
    2014     2013  
Accruing loans and leases past due 90 days or more   $ 1,153     $ 1,262  
Nonaccrual loans and leases     19,798       38,132  
Other real estate owned     4,806       7,752  
Total nonperforming assets   $ 25,757     $ 47,146  
                 
                 

Contact Information

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