SOURCE: First Financial Corp.

First Financial Corp.

July 25, 2017 10:30 ET

First Financial Corporation reports 2nd Quarter results

TERRE HAUTE, IN--(Marketwired - July 25, 2017) - First Financial Corporation (NASDAQ: THFF) today announced results for the second quarter of 2017. Net income increased 1.46% to $8.4 million compared to $8.2 million for the same period of 2016. Diluted net income per common share was unchanged at $0.68 compared to the same period in 2016.

The Corporation further reported net income of $17.7 million for the six months ended June 30, 2017 versus $21.9 million for the comparable period of 2016, which included an after-tax gain on the sale of the Corporation's insurance subsidiary of $5.8 million. Diluted net income per common share was $1.45 for the six months ended June 30, 2017 versus $1.76 for the comparable period of 2016. Return on assets for the six months ended June 30, 2017 was 1.19% compared to 1.48% for the six months ended June 30, 2016.

Norman L. Lowery, President and Chief Executive Officer, commented, "We are pleased with our second quarter 2017 results. We have experienced continued loan growth, which is driving increases in our interest income."

Book value per share was $35.54 at June 30, 2017, a 4.9% increase from the $33.89 at June 30, 2016. Shareholders' equity increased 5.1% to $434.5 million from $413.2 million on June 30, 2016.

Average total loans for the second quarter of 2017 were $1.85 billion, an increase of $66.3 million or 3.72%, versus the $1.78 billion for the comparable period in 2016. Total loans outstanding increased $54.2 million, or 3.01% to $1.86 billion as of June 30, 2017 from $1.80 billion as of June 30, 2016.

Average total deposits for the quarter ended June 30, 2017 were $2.44 billion versus $2.42 billion as of June 30, 2016.

The company's tangible common equity to tangible asset ratio was 13.55% at June 30, 2017, compared to 12.89% at June 30, 2016.

Net interest income for the second quarter of 2017 was $26.6 million compared to the $26.1 million reported for the same period of 2016. The net interest margin for the six months ended June 30, 2017 was unchanged at 4.05% compared to the same period at June 30, 2016.

The provision for loan losses for the three months ended June 30, 2017 was $1.0 million compared to $435 thousand for the second quarter of 2016. Net charge-offs were $755 thousand for the second quarter of 2017 compared to $856 thousand in the same period of 2016. The Corporation's allowance for loan losses as of June 30, 2017 was $19.7 million compared to $19.5 million as of June 30, 2016. The allowance for loan losses as a percent of total loans was 1.06% as of June 30, 2017 compared to 1.08% as of June 30, 2016.

Nonperforming loans decreased 17.5% to $22.7 million as of June 30, 2017 versus $27.6 million as of June 30, 2016. The ratio of nonperforming loans to total loans and leases was 1.22% as of June 30, 2017 versus 1.53% as of June 30, 2016.

Non-interest income for the three months ended June 30, 2017 was $8.1 million compared to $8.2 million as of June 30, 2016. On a year-over-year basis, service charges and fees on deposit accounts increased $403 thousand to $3.0 million.

Non-interest expense for the three months ended June 30, 2017 decreased $672 thousand to $22.1 million compared to $22.8 million in 2016. On a year-over-year basis, salaries and employee benefits decreased $623 thousand driven by lower pension expense. The Corporation's efficiency ratio was 60.93% for the quarter ending June 30, 2017 versus 63.55% for the same period in 2016.

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

     
   Three Months Ended  Six Months Ended
   June 30,  March 31,  June 30,  June 30,  June 30,
   2017  2017  2016  2017  2016
END OF PERIOD BALANCES               
 Assets $ 2,974,688 $ 2,957,285 $ 2,958,016 $ 2,974,688 $ 2,958,016
 Deposits $ 2,427,723 $ 2,438,012 $ 2,394,334 $ 2,427,723 $ 2,394,334
 Loans, including net deferred loan costs $ 1,857,030 $ 1,834,893 $ 1,802,810 $ 1,857,030 $ 1,802,810
 Allowance for Loan Losses $ 19,680 $ 19,395 $ 19,504 $ 19,680 $ 19,504
 Total Equity $ 434,454 $ 426,808 $ 413,224 $ 434,454 $ 413,224
 Tangible Common Equity $ 398,242 $ 390,470 $ 376,472 $ 398,242 $ 376,472
                
AVERAGE BALANCES               
 Total Assets $ 2,974,260 $ 2,983,114 $ 2,947,153 $ 2,978,687 $ 2,953,080
 Earning Assets $ 2,779,361 $ 2,766,991 $ 2,747,214 $ 2,773,176 $ 2,736,070
 Investments $ 920,453 $ 919,599 $ 945,948 $ 920,026 $ 950,972
 Loans $ 1,847,484 $ 1,841,392 $ 1,781,201 $ 1,844,438 $ 1,769,506
 Total Deposits $ 2,436,440 $ 2,444,162 $ 2,422,302 $ 2,440,301 $ 2,420,485
 Interest-Bearing Deposits $ 2,009,932 $ 1,971,848 $ 1,877,092 $ 1,990,890 $ 1,875,081
 Interest-Bearing Liabilities $ 51,752 $ 50,164 $ 44,852 $ 50,958 $ 45,439
 Total Equity $ 430,975 $ 426,673 $ 406,382 $ 428,824 $ 410,678
                
INCOME STATEMENT DATA               
 Net Interest Income $ 26,560 $ 26,507 $ 26,059 $ 53,067 $ 52,216
 Net Interest Income Fully Tax Equivalent $ 28,137 $ 28,031 $ 27,602 $ 56,168 $ 55,293
 Provision for Loan Losses $ 1,040 $ 1,596 $ 435 $ 2,636 $ 1,270
 Non-interest Income $ 8,113 $ 11,049 $ 8,214 $ 19,162 $ 30,580
 Non-interest Expense $ 22,088 $ 22,577 $ 22,760 $ 44,665 $ 46,107
 Net Income $ 8,352 $ 9,369 $ 8,232 $ 17,721 $ 21,907
                
PER SHARE DATA               
 Basic and Diluted Net Income Per Common Share $ 0.68 $ 0.77 $ 0.68 $ 1.45 $ 1.76
 Cash Dividends Declared Per Common Share $ 0.50 $ - $ 0.50 $ 0.50 $ 0.50
 Book Value Per Common Share $ 35.54 $ 34.92 $ 33.89 $ 35.54 $ 33.89
 Tangible Book Value Per Common Share $ 32.12 $ 31.94 $ 30.91 $ 32.58 $ 30.88
 Basic Weighted Average Common Shares Outstanding  12,224  12,217  12,236  12,221  12,441
            
            
Key Ratios Three Months Ended Six Months Ended
  June 30, March 31, June 30, June 30, June 30,
  2017 2017 2016 2017 2016
Return on average assets 1.12 % 1.26 % 1.12 % 1.19 % 1.48 %
Return on average common shareholder's equity 7.75 % 8.78 % 8.04 % 8.26 % 10.67 %
Efficiency ratio 60.93 % 57.77 % 63.55 % 59.29 % 53.69 %
Average equity to average assets 14.49 % 14.31 % 13.89 % 14.40 % 13.91 %
Net interest margin 4.05 % 4.05 % 4.04 % 4.05 % 4.05 %
Net charge-offs to average loans and leases 0.19 % 0.21 % 0.19 % 0.19 % 0.19 %
Loan and lease loss reserve to loans and leases 1.06 % 1.06 % 1.08 % 1.06 % 1.08 %
Loan and lease loss reserve to nonperforming loans and other real estate 89.05 % 98.37 % 70.76 % 89.05 % 70.76 %
Nonperforming loans to loans and leases 1.22 % 1.20 % 1.53 % 1.22 % 1.53 %
Tier 1 leverage 13.73 % 13.63 % 13.08 % 13.73 % 13.08 %
Risk-based capital - Tier 1 17.80 % 17.78 % 17.46 % 17.80 % 17.46 %
           
           
Asset Quality  Three Months Ended  Six Months Ended
   June 30,  March 31,  June 30,  June 30,  June 30,
   2017  2017  2016  2017  2016
Accruing loans and leases past due 30-89 days $ 8,846 $ 7,713 $ 7,435 $ 8,846 $ 7,435
Accruing loans and leases past due 90 days or more $ 1,117 $ 453 $ 1,044 $ 1,117 $ 1,044
Nonaccrual loans and leases $ 11,255 $ 11,106 $ 14,526 $ 11,255 $ 14,526
Nonperforming loans $ 22,740 $ 22,011 $ 27,562 $ 22,740 $ 27,562
Other real estate owned $ 2,384 $ 2,294 $ 2,837 $ 2,384 $ 2,837
Total nonperforming assets $ 35,024 $ 34,004 $ 38,998 $ 35,024 $ 38,998
Total troubled debt restructurings $ 7,984 $ 8,158 $ 9,155 $ 7,984 $ 9,155
Gross charge-offs $ 2,090 $ 2,274 $ 1,842 $ 4,364 $ 3,482
Recoveries $ 1,335 $ 1,300 $ 986 $ 2,635 $ 1,771
Net charge-offs/(recoveries) $ 755 $ 974 $ 856 $ 1,729 $ 1,711
           
           
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
 
   June 30,
 2017
  December 31,
 2016
   (unaudited)
ASSETS       
Cash and due from banks $ 55,379    $ 75,012  
Federal funds sold  -     6,952  
Securities available-for-sale  851,577     853,725  
Loans:       
Commercial  1,107,658     1,106,182  
Residential  429,827     423,911  
Consumer  316,542     305,881  
   1,854,027     1,835,974  
(Less) plus:       
Net deferred loan costs  3,003     3,206  
Allowance for loan losses  (19,680 )   (18,773 )
   1,837,350     1,820,407  
Restricted stock  10,369     10,359  
Accrued interest receivable  11,564     12,311  
Premises and equipment, net  48,296     49,240  
Bank-owned life insurance  84,343     83,737  
Goodwill  34,355     34,355  
Other intangible assets  1,857     2,109  
Other real estate owned  2,384     2,531  
Other assets  37,214     37,789  
TOTAL ASSETS $ 2,974,688    $ 2,988,527  
        
LIABILITIES AND SHAREHOLDERS' EQUITY       
Deposits:       
Non-interest-bearing $ 415,945    $ 564,092  
Interest-bearing:       
Certificates of deposit exceeding the FDIC insurance limits  42,820     43,759  
Other interest-bearing deposits  1,968,958     1,820,675  
   2,427,723     2,428,526  
Short-term borrowings  51,880     80,989  
FHLB advances  132     132  
Other liabilities  60,499     64,485  
TOTAL LIABILITIES  2,540,234     2,574,132  
        
Shareholders' equity       
Common stock, $.125 stated value per share;       
Authorized shares-40,000,000       
Issued shares-14,595,320 in 2017 and 14,578,758 in 2016       
Outstanding shares-12,223,750 in 2017 and 12,216,712 in 2016  1,821     1,820  
Additional paid-in capital  74,877     74,525  
Retained earnings  433,435     421,826  
Accumulated other comprehensive loss  (5,564 )   (14,164 )
Less: Treasury shares at cost-2,371,570 in 2017 and 2,362,046 in 2016  (70,115 )   (69,612 )
TOTAL SHAREHOLDERS' EQUITY  434,454     414,395  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,974,688    $ 2,988,527  
        
        
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
 
   Three Months Ended
 June 30,
  Six Months Ended
 June 30,
   2017   2016   2017   2016
   (unaudited)   (unaudited)   (unaudited)   (unaudited)
INTEREST INCOME:               
Loans, including related fees $ 22,325  $ 21,271  $ 44,266  $ 42,455
Securities:               
Taxable  3,630   3,694   7,387   7,525
Tax-exempt  1,843   1,818   3,670   3,640
Other  330   367   651   731
TOTAL INTEREST INCOME  28,128   27,150   55,974   54,351
INTEREST EXPENSE:               
Deposits  1,471   1,030   2,746   2,017
Short-term borrowings  73   26   117   49
Other borrowings  24   35   44   69
TOTAL INTEREST EXPENSE  1,568   1,091   2,907   2,135
NET INTEREST INCOME  26,560   26,059   53,067   52,216
Provision for loan losses  1,040   435   2,636   1,270
NET INTEREST INCOME AFTER PROVISION               
FOR LOAN LOSSES  25,520   25,624   50,431   50,946
NON-INTEREST INCOME:               
Trust and financial services  1,149   1,292   2,466   2,626
Service charges and fees on deposit accounts  3,004   2,601   5,781   5,105
Other service charges and fees  3,114   3,149   6,299   6,149
Securities gains/(losses), net  15   10   17   13
Insurance commissions  36   33   58   2,305
Gain on sale of certain assets and liabilities of insurance brokerage operation  -   -   -   13,021
Gain on sales of mortgage loans  393   481   720   885
Other  402   648   3,821   476
TOTAL NON-INTEREST INCOME  8,113   8,214   19,162   30,580
NON-INTEREST EXPENSE:               
Salaries and employee benefits  12,519   13,142   25,895   26,737
Occupancy expense  1,761   1,722   3,529   3,453
Equipment expense  1,835   1,808   3,632   3,645
FDIC Expense  228   403   461   854
Other  5,745   5,685   11,148   11,418
TOTAL NON-INTEREST EXPENSE  22,088   22,760   44,665   46,107
INCOME BEFORE INCOME TAXES  11,545   11,078   24,928   35,419
Provision for income taxes  3,193   2,846   7,207   13,512
NET INCOME  8,352   8,232   17,721   21,907
OTHER COMPREHENSIVE INCOME               
Change in unrealized gains/losses on securities, net of reclassifications and taxes  5,045   1,262   8,233   5,300
Change in funded status of post retirement benefits, net of taxes  184   304   367   608
COMPREHENSIVE INCOME $ 13,581  $ 9,798  $ 26,321  $ 27,815
PER SHARE DATA               
Basic and Diluted Earnings per Share $ 0.68  $ 0.68  $ 1.45  $ 1.76
Weighted average number of shares outstanding (in thousands)  12,224   12,236   12,221   12,441
            
            

Contact Information

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