SOURCE: First Financial Corporation

First Financial Corporation

July 30, 2012 11:52 ET

First Financial Corporation Reports 2nd Quarter 2012 Results

TERRE HAUTE, IN--(Marketwire - Jul 30, 2012) -  First Financial Corporation (NASDAQ: THFF) today announced results for the six and three months ended June 30, 2012. Net income of $16.1 and $8.7 million for the six and three months, respectively, compares to $17.2 and $8.4 million for the same periods of 2011. Return on assets for the six and three months ended June 30, 2012 was 1.11% and 1.20%, respectively, compared to 1.38% and 1.35% for the six and three months ended June 30, 2011. The first six months of 2012 include income and expenses associated with the purchase of Freestar Bank on December 31, 2011 that are not part of the results for the first six months of 2011.

Net interest income for the second quarter of 2012 was $27.7 million, an increase of 10.0% over the $25.2 million reported for the same period of 2011. Net interest income for the six months ended June 30, 2012 was $54.8 million compared to the $49.9 million reported for the same period of 2011, an increase of $4.9 million. The net interest margin at June 30, 2012 was 4.34%, compared to 4.53% reported at June 30, 2011.

The provision for loan losses for the three months ended June 30, 2012 was $1.8 million compared to the $1.4 million provision for the second quarter of 2011. For the six months ended June 30, 2012 and 2011, the provision expense was $4.7 and $2.5 million, respectively. 

Non-interest income for the three months ended June 30, 2012 and 2011 was $9.8 and $7.9 million, respectively, a 23.7% increase. Securities gains and gains from the sale of mortgage loans of $1.1 million comprise most of the increase. For the six months ended June 30, 2012, non-interest income increased $3.1 million to $19.3 million from the $16.2 million for the same period of 2011. All categories of non-interest income increased.

Non-interest expense for the three months ended June 30, 2012 was $23.1 million compared to $19.4 million in 2011. For the six months ended June 30, 2012, non-interest expense was $46.5 million compared to $38.3 for the six months ended June 30, 2011. The 2012 non-interest expense contains salary, benefits and one-time expenses related to the acquisition of the Freestar Bank.

Total loans at June 30, 2012 of $1.88 billion compare to the $1.65 billion reported the same time a year ago. Deposits increased by $359.9 million to $2.25 billion. These increases were primarily driven by the Freestar Bank acquisition. 

Book value per share was $27.07, a 3.82% increase from $26.07 at June 30, 2011. Shareholders' equity increased 4.05% to $358.3 million from $342.9 million on June 30, 2011. During the second quarter of 2012 the Corporation declared a $0.47 per share dividend. This marked the 24th consecutive year of dividend increases to shareholders.

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)   June 30,     December 31,  
    2012     2011  
    (Unaudited)  
ASSETS            
Cash and due from banks   $ 84,669     $ 134,280  
Federal funds sold and short-term investments     27,472       11,725  
Securities available-for-sale     658,751       666,287  
Loans:     -       -  
  Commercial     1,101,791       1,099,324  
  Residential     500,110       505,600  
  Consumer     276,758       289,717  
      1,878,659       1,894,641  
Less:                
  Unearned Income     (936 )     (962 )
  Allowance for loan losses     (20,092 )     (19,241 )
      1,857,631       1,874,438  
                 
Restricted Stock     21,296       22,282  
Accrued interest receivable     11,829       12,947  
Premises and equipment, net     44,945       40,105  
Bank-owned life insurance     74,187       82,646  
Goodwill     37,612       37,612  
Other intangible assets     4,539       5,142  
Other real estate owned     7,163       4,964  
FDIC Indemnification asset     1,608       2,384  
Other assets     60,036       59,964  
TOTAL ASSETS   $ 2,891,738     $ 2,954,776  
LIABILITIES AND SHAREHOLDERS' EQUITY                
Deposits:                
Noninterest-bearing   $ 496,303     $ 435,236  
Interest-bearing:     -       -  
  Certificates of deposit of $100 or more     217,523       242,001  
  Other interest-bearing deposits     1,539,395       1,597,262  
      2,253,221       2,274,499  
Short-term borrowings     47,091       100,022  
Other borrowings     146,111       146,427  
Other liabilities     87,028       86,867  
TOTAL LIABILITIES     2,533,451       2,607,815  
Shareholders' equity                
  Common stock, $.125 stated value per share;                
    Authorized shares-40,000,000                
    Issued shares-14,490,609 in 2012 and 14,450,966 in 2011                
    Outstanding shares-13,237,523 in 2012 and 13,197,880 in 2011     1,807       1,806  
  Additional paid-in capital     69,571       69,328  
  Retained earnings     328,056       318,130  
  Accumulated other comprehensive income (loss)     (9,338 )     (10,494 )
Treasury shares at cost-1,253,086 in 2012 and 2011     (31,809 )     (31,809 )
TOTAL SHAREHOLDERS' EQUITY     358,287       346,961  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 2,891,738     $ 2,954,776  
                 
                     
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME        
(Dollar amounts in thousands, except per share data)           
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2012     2011     2012     2011  
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
INTEREST INCOME:                        
  Loans, including related fees   $ 25,226     $ 23,004     $ 50,424     $ 45,960  
  Securities:                                
    Taxable     3,508       4,321       7,031       8,516  
    Tax-exempt     1,810       1,699       3,615       3,363  
  Other     590       471       1,213       947  
TOTAL INTEREST INCOME     31,134       29,495       62,283       58,786  
                                 
INTEREST EXPENSE:                                
Deposits     2,169       3,082       4,833       6,365  
Short-term borrowings     37       41       83       95  
Other borrowings     1,266       1,213       2,540       2,412  
TOTAL INTEREST EXPENSE     3,472       4,336       7,456       8,872  
                                 
NET INTEREST INCOME     27,662       25,159       54,827       49,914  
                                 
Provision for loan losses     1,789       1,352       4,745       2,534  
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES     25,873       23,807       50,082       47,380  
                                 
NON-INTEREST INCOME:                                
Trust and financial services     1,439       1,191       2,919       2,528  
Service charges and fees on deposit accounts     2,402       2,354       4,606       4,503  
Other service charges and fees     2,276       2,092       4,731       4,081  
Securities gains/(losses), net     664       4       660       7  
Total impairment losses     (11 )     (97 )     (11 )     (97 )
  Loss recognized in other comprehensive loss                                
  Net impairment loss recognized in earnings     (11 )     (97 )     (11 )     (97 )
Insurance commissions     1,799       1,673       3,690       3,393  
Gain on sales of mortgage loans     792       401       1,717       738  
Other     396       268       956       1,035  
TOTAL NON-INTEREST INCOME     9,757       7,886       19,268       16,188  
                                 
NON-INTEREST EXPENSE:                                
Salaries and employee benefits     13,891       11,517       28,310       22,955  
Occupancy expense     1,488       1,203       2,905       2,453  
Equipment expense     1,399       1,095       2,681       2,229  
FDIC Expense     527       536       955       1,279  
Other     5,797       5,061       11,671       9,446  
TOTAL NON-INTEREST EXPENSE     23,102       19,412       46,522       38,362  
INCOME BEFORE INCOME TAXES     12,528       12,281       22,828       25,206  
Provision for income taxes     3,823       3,864       6,680       7,986  
NET INCOME     8,705       8,417       16,148       17,220  
OTHER COMPREHENSIVE INCOME                                
Change in unrealized gains/losses on securities, net of reclassifications     570       9,158       640       15,507  
Tax effect     (228 )     (3,663 )     (256 )     (6,203 )
      342       5,495       384       9,304  
Change in funded status of post retirement benefits     670       503       1,287       1,008  
Tax effect     (268 )     (201 )     (515 )     (403 )
      402       302       772       605  
TOTAL OTHER COMPREHENSIVE INCOME     744       5,797       1,156       9,909  
COMPREHENSIVE INCOME   $ 9,449     $ 14,214     $ 17,304     $ 27,129  
PER SHARE DATA                                
Basic and Diluted     0.66       0.64       1.22       1.31  
Dividends per Share     0.47       0.47       0.47       0.47  
Weighted average number of shares outstanding (in thousands)     13,238       13,152       13,230       13,152  
                                 
       
Key Ratios   For the six months ended  
    June 30,     June 30,  
    2012     2011  
Return on average assets     1.11 %     1.38 %
Return on average common shareholder's equity     8.96 %     10.34 %
Average common shareholder's equity to average assets     12.32 %     13.89 %
End of period tangible common equity to tangible assets     11.09 %     10.45 %
Book value per share   $ 27.07     $ 26.07  
Tangible book value per share   $ 23.88     $ 22.82  
Risk-based capital - Tier 1     14.45 %     17.27 %
Risk-based capital - Total     15.35 %     18.39 %
Net interest margin     4.34 %     4.53 %
Efficiency Ratio     60.32 %     55.79 %
Net charge-offs to average loans and leases     0.26 %     0.18 %
Loan and lease loss reserve to loans and leases     1.07 %     0.99 %
Nonperforming assets to loans and leases     2.73 %     3.12 %
                 
     
Asset Quality   For the six months ended
    June 30,   June 30,
    2012   2011
Accruing loans and leases past due 90 days or more   $ 7,995   $ 2,992
Nonaccrual loans and leases     36,066     43,389
Other real estate owned     7,163     4,964
Total nonperforming assets   $ 51,224   $ 51,345
             

Contact Information

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