SOURCE: First Financial Corporation

First Financial Corporation

February 05, 2014 15:00 ET

First Financial Corporation Reports 2013 Results

TERRE HAUTE, IN--(Marketwired - Feb 5, 2014) -  First Financial Corporation (NASDAQ: THFF) today announced results for the fourth quarter and the year ended December 31, 2013. Net income of $31.5 and $8.9 million for the twelve and three months, respectively, compares to $32.8 and $8.6 million for the same periods of 2012. Return on assets for the twelve and three months ended December 31, 2013 was 1.06% and 1.16%, respectively, compared to 1.13% and 1.14% for the twelve and three months ended December 31, 2012.

Net interest income for the fourth quarter of 2013 was $27.6 million, an increase of 3.27% over the $26.7 million reported for the same period of 2012. Net interest income for the year ended December 31, 2013 was $107.3 million compared to the $108.9 million reported 2012. The net interest margin at December 31, 2013 was 4.13%, compared to 4.30% reported at December 31, 2012.

The provision for loan losses for the three months ended December 31, 2013 was $1.4 million compared to the $1.5 million provision for the fourth quarter of 2012. For the year ended December 31, 2013 and 2012, the provision expense was $7.9 and $8.8 million, respectively.

Non-interest income for the three months ended December 31, 2013 was $11.3 million, a 6.5% increase over the $10.6 million reported for the fourth quarter of 2012. For the year ended December 31, 2013, non-interest income increased 2.3% to $40.5 million from the $39.5 million reported for the same period of 2012.

Non-interest expense for the three months ended December 31, 2013 was $24.2 million compared to $23.6 million in 2012. For the year ended December 31, 2013, non-interest expense increased 1.6% to $94.6 million compared to $93.1 for the year ended December 31, 2012.

Total loans at December 31, 2013 of $1.79 billion compare to the $1.85 billion reported during the same period a year ago. Deposits increased by $182.7 million to $2.46 billion. Book value per share was $28.94 at year end 2013, a 3.35% increase from the $28.01 at December 31, 2012. Shareholders' equity increased 3.8% to $386.2 million from $372.1 million on December 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 and Forrest Sherer Inc. in Indiana.

   
   
CONSOLIDATED BALANCE SHEETS  
(Dollar amounts in thousands, except per share data)  
   
    December 31,  
(Dollar amounts in thousands, except per share data)   2013     2012  
ASSETS            
Cash and due from banks   $ 71,033     $ 87,230  
Federal funds sold     4,276       20,800  
Securities available-for-sale     914,560       691,000  
Loans, net of allowance of $20,068 in 2013 and $21,958 in 2012     1,771,360       1,829,978  
Restricted Stock     21,057       21,292  
Accrued interest receivable     11,554       12,024  
Premises and equipment, net     51,449       47,308  
Bank-owned life insurance     79,035       77,295  
Goodwill     39,489       37,612  
Other intangible assets     4,935       3,893  
Other real estate owned     5,291       7,722  
FDIC Indemnification Asset     1,055       2,632  
Other assets     43,624       56,622  
TOTAL ASSETS   $ 3,018,718     $ 2,895,408  
LIABILITIES AND SHAREHOLDERS' EQUITY                
Deposits:                
Non-interest-bearing   $ 506,815     $ 465,954  
Interest-bearing:                
Certificates of deposit of $100 or more     179,177       213,610  
Other interest-bearing deposits     1,772,799       1,596,570  
      2,458,791       2,276,134  
Short-term borrowings     59,592       40,551  
Other borrowings     58,288       119,705  
Other liabilities     55,852       86,896  
TOTAL LIABILITIES     2,632,523       2,523,286  
Shareholders' equity                
Common stock, $.125 stated value per share;                
Authorized shares-40,000,000                
Issued shares-14,516,113 in 2013 and 14,490,609 in 2012                
Outstanding shares-13,343,029 in 2013 and 13,287,348 in 2012     1,811       1,808  
Additional paid-in capital     71,074       69,989  
Retained earnings     357,083       338,342  
Accumulated other comprehensive income (loss)     (13,969 )     (7,472 )
Less: Treasury shares at cost-1,173,084 in 2013 and 1,203,261 in 2012     (29,804 )     (30,545 )
TOTAL SHAREHOLDERS' EQUITY     386,195       372,122  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 3,018,718     $ 2,895,408  
                 
                 
                 
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME  
(Dollar amounts in thousands, except per share data)  
   
    Years Ended December 31,  
(Dollar amounts in thousands, except per share data)   2013     2012     2011  
INTEREST AND DIVIDEND INCOME:                  
Loans, including related fees   $ 91,242     $ 99,196     $ 91,392  
Securities:                        
Taxable     16,157       13,542       16,161  
Tax-exempt     7,046       7,246       6,779  
Other     1,776       2,321       2,009  
TOTAL INTEREST AND DIVIDEND INCOME     116,221       122,305       116,341  
INTEREST EXPENSE:                        
Deposits     5,886       8,520       12,127  
Short-term borrowings     78       140       187  
Other borrowings     2,997       4,733       4,833  
TOTAL INTEREST EXPENSE     8,961       13,393       17,147  
NET INTEREST INCOME     107,260       108,912       99,194  
Net Provision for loan losses     7,860       8,773       5,755  
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES     99,400       100,139       93,439  
NON-INTEREST INCOME:                        
Trust and financial services     6,035       5,804       4,544  
Service charges and fees on deposit accounts     10,162       9,742       8,995  
Other service charges and fees     11,081       9,710       8,289  
Securities gain, net     423       886       6  
Other-than-temporary loss                        
Total impairment loss     --       (11 )     (110 )
Loss recognized in other comprehensive income                        
Net impairment loss recognized in earnings     --       (11 )     (110 )
Insurance commissions     7,750       7,422       7,347  
Gain on sale of mortgage loans     3,052       4,590       1,957  
Other     1,952       1,404       2,312  
TOTAL NON-INTEREST INCOME     40,455       39,547       33,340  
NON-INTEREST EXPENSES:                        
Salaries and employee benefits     55,097       56,211       45,362  
Occupancy expense     6,102       5,746       4,777  
Equipment expense     6,348       5,489       4,352  
Federal Deposit Insurance     2,052       1,949       1,804  
Other     24,955       23,661       18,892  
TOTAL NON-INTEREST EXPENSE     94,554       93,056       75,187  
INCOME BEFORE INCOME TAXES     45,301       46,630       51,592  
Provision for income taxes     13,767       13,818       14,397  
NET INCOME   $ 31,534     $ 32,812     $ 37,195  
OTHER COMPREHENSIVE INCOME                        
Change in unrealized gains/losses on securities, net of reclassifications and taxes   $ (17,066 )   $ 691     $ 8,857  
Change in funded status of post retirement benefits, net of taxes   $ 10,569     $ 2,331     $ (9,982 )
COMPREHENSIVE INCOME   $ 25,037     $ 35,834     $ 36,070  
EARNINGS PER SHARE:                        
BASIC AND DILUTED   $ 2.37     $ 2.48     $ 2.83  
Weighted average number of shares outstanding (in thousands)     13,310       13,240       13,163  
                         
                         
                         
Key Ratios   For the Year Ended  
    December 31,     December 31,  
    2013     2012  
Return on average assets     1.06 %     1.13 %
Return on average common shareholder's equity     8.35 %     9.02 %
Average common shareholder's equity to average assets     12.69 %     12.55 %
End of period tangible common equity to tangible assets     11.49 %     11.58 %
Book value per share   $ 28.94     $ 28.01  
Tangible book value per share   $ 25.61     $ 24.88  
Risk-based capital - Tier 1     16.22 %     15.38 %
Risk-based capital - Total     17.13 %     16.37 %
Net interest margin     4.13 %     4.30 %
Efficiency Ratio     62.02 %     60.24 %
Net charge-offs to average loans and leases     0.47 %     0.45 %
Loan and lease loss reserve to loans and leases     1.12 %     1.19 %
Nonperforming assets to loans and leases     1.19 %     2.59 %
                 
                 
                 
Asset Quality   For the Year Ended
    December 31,   December 31,
    2013   2012
Accruing loans and leases past due 90 days or more   $ 2,073   $ 3,362
Nonaccrual loans and leases     19,779     36,794
Other real estate owned     5,291     7,722
Total nonperforming assets   $ 27,143   $ 47,878

Contact Information

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