SOURCE: First Financial Corp.

First Financial Corp.

October 28, 2015 13:00 ET

First Financial Corporation Reports 3rd Quarter Results

TERRE HAUTE, IN--(Marketwired - October 28, 2015) - First Financial Corporation (NASDAQ: THFF) today announced results for the third quarter of 2015. Net income increased 1.52% to $8.4 million compared to $8.3 million for the same period of 2014. Diluted net income per common share increased 6.45% to $0.65 from $0.62 for the comparable period of 2014.

The Corporation further reported net income of $23.1 million for the nine months ended September 30, 2015 versus $24.6 million for the comparable period of 2014. Diluted net income per common share was $1.79 for the nine months ended September 30, 2015 versus $1.85 for the comparable period of 2014. Return on assets for the nine months ended September 30, 2015 was 1.03% compared to 1.08% for the nine months ended September 30, 2014.

Book value per share was $32.16 at September 30, 2015, a 3.21% increase from the $31.16 at September 30, 2014. Shareholders' equity increased 1.16% to $408.6 million from $403.9 million on September 30, 2014. On August 25, 2014 the Corporation announced a stock repurchase plan to acquire 5% of the Corporation's outstanding common stock. During the third quarter of 2015 the corporation repurchased 104,507 shares as part of the repurchase plan bringing the total shares repurchased to date to 667,700, completing the planned repurchase. The Corporation also purchased an additional 19,168 shares during the third quarter of 2015.

Average total loans for the third quarter of 2015 were $1.77 billion, a decrease of $40.85 million versus the $1.81 billion for the comparable period in 2014. At September 30, 2015, total loans outstanding were $1.77 billion, a decrease from $1.81 billion at September 30, 2014. On a linked quarter basis, average total loans increased $251 thousand, or .01%, from $1.77 billion for the quarter ending June 30, 2015.

Average total deposits for the quarter ended September 30, 2015 were $2.42 billion versus $2.40 billion as of September 30, 2014, an increase of .62%. Higher cost time deposits decreased to $429.7 million from $510.9 million for the same period of 2014. Lower cost demand and savings deposits increased to $2.0 billion from $1.9 billion for the same period of 2014. The cost of funds for deposits was .21% versus .24% for the same period of 2014.

The company's tangible common equity to tangible asset ratio was 12.61% at September 30, 2015, compared to 11.96% at September 30, 2014.

Net interest income for the third quarter of 2015 was $26.6 million compared to $27.1 million reported for the same period of 2014. The net interest margin for the nine months ended September 30, 2015 was 4.04% compared to 4.11% reported at September 30, 2014. The net interest margin has been impacted by the continued effects of the low interest rate environment on loans and investments.

The provision for loan losses for the three months ended September 30, 2015 was $1.05 million compared to $1.51 million for the third quarter of 2014. Net charge-offs were $986 thousand for the third quarter of 2015 compared to $2.28 million in the same period of 2014. The Corporation's allowance for loan losses as of September 30, 2015 was $19.9 million compared to $17.5 million as of September 30, 2014. The allowance for loan losses as a percent of total loans was 1.13% as of September 30, 2015 compared to .97% as of September 30, 2014.

Nonperforming loans decreased 19.03% to $31.0 million as of September 30, 2015 versus $38.2 million as of September 30, 2014. The ratio of nonperforming loans to total loans and leases was 1.75% as of September 30, 2015 versus 2.11% as of September 30, 2014.

Non-interest income for the three months ended September 30, 2015 was $10.0 million compared to $10.5 million in 2014.

Non-interest expense for the three months ended September 30, 2015 decreased $553 thousand to $24.2 million compared to $24.7 million in 2014. In the nine months ended September 30, 2015 employee benefits increased $3.03 million due to the lower discount rate and the use of the new RP-2014 Mortality Table. The pension plan was frozen for the majority of employees as of December 31, 2012. The Corporation's efficiency ratio was 63.42% for the quarter ending September 30, 2015 versus 63.00% for the same period in 2014.

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.

     
     
   Three Months Ended  Nine Months Ended
   September 30,  June 30,  September 30,  September 30,  September 30,
   2015  2015  2014  2015  2014
END OF PERIOD BALANCES                    
 Assets  $2,942,833  $2,973,821  $3,056,767  $2,942,833  $3,056,767
 Deposits  $2,418,589  $2,398,574  $2,451,952  $2,418,589  $2,451,952
 Loans  $1,766,667  $1,783,788  $1,811,325  $1,766,667  $1,811,325
 Allowance for Loan Losses  $19,925  $19,861  $17,507  $19,925  $17,507
 Total Equity  $408,591  $399,058  $403,873  $408,591  $403,873
 Tangible Common Equity  $365,727  $355,997  $360,239  $365,727  $360,239
                     
AVERAGE BALANCES                    
 Total Assets  $2,954,983  $2,990,020  $3,004,862  $2,977,719  $3,017,598
 Earning Assets  $2,733,630  $2,760,188  $2,794,572  $2,747,516  $2,793,730
 Investments  $960,139  $977,537  $978,435  $968,997  $989,685
 Loans  $1,769,009  $1,768,758  $1,809,777  $1,766,097  $1,793,625
 Total Deposits  $2,418,162  $2,462,284  $2,403,368  $2,447,282  $2,458,614
 Interest-Bearing Deposits  $1,884,420  $1,915,213  $1,886,628  $1,905,714  $1,940,220
 Interest-Bearing Liabilities  $58,957  $43,413  $148,997  $49,053  $106,157
 Total Equity  $401,840  $407,387  $400,142  $403,550  $400,452
                     
INCOME STATEMENT DATA                    
 Net Interest Income  $26,576  $25,924  $27,145  $78,495  $80,893
 Net Interest Income Fully Tax Equivalent  $28,134  $27,491  $28,718  $83,184  $85,536
 Provision for Loan Losses  $1,050  $1,150  $1,506  $3,650  $3,110
 Non-interest Income  $9,951  $9,778  $10,494  $29,790  $30,170
 Non-interest Expense  $24,152  $25,310  $24,705  $73,455  $72,459
 Net Income  $8,398  $6,923  $8,272  $23,082  $24,591
                     
PER SHARE DATA                    
 Basic and Diluted Net Income Per Common Share  $0.65  $0.54  $0.62  $1.79  $1.85
 Cash Dividends Declared Per Common Share  $-  $0.49  $-  $0.49  $0.49
 Book Value Per Common Share  $32.16  $31.09  $31.16  $32.16  $31.16
 Tangible Book Value Per Common Share  $28.79  $28.23  $27.79  $28.79  $27.79
 Basic Weighted Average Common Shares Outstanding   12,773   12,903   13,269   12,874   13,325
                
       
       
Key Ratios  Three Months Ended   Nine Months Ended  
   September 30,   June 30,   September 30,   September 30,   September 30,  
   2015   2015   2014   2015   2014  
Return on average assets  1.14 % 0.93 % 1.10 % 1.03 % 1.08 %
Return on average common shareholder's equity  8.36 % 6.80 % 8.27 % 7.61 % 8.17 %
Efficiency ratio  63.42 % 67.91 % 63.00 % 65.02 % 62.55 %
Average equity to average assets  13.60 % 13.62 % 13.32 % 13.55 % 13.27 %
Net interest margin  4.12 % 3.99 % 4.15 % 4.04 % 4.11 %
Net charge-offs to average loans and leases  0.22 % 0.14 % 0.50 % 0.19 % 0.37 %
Loan and lease loss reserve to loans and leases  1.13 % 1.11 % 0.97 % 1.13 % 0.97 %
Loan and lease loss reserve to nonperforming loans and other real estate  64.37 % 55.45 % 45.79 % 64.37 % 45.79 %
Nonperforming loans to loans  1.75 % 2.01 % 2.11 % 1.75 % 2.11 %
Tier 1 leverage  12.92 % 12.62 % 12.19 % 12.92 % 12.19 %
Risk-based capital - Tier 1  17.73 % 17.30 % 16.53 % 17.73 % 16.53 %
                
     
     
Asset Quality  Three Months Ended  Nine Months Ended
   September 30,  June 30,  September 30,  September 30,  September 30,
   2015  2015  2014  2015  2014
Accruing loans and leases past due 30-89 days  $6,778  $5,193  $-  $6,778  $-
Accruing loans and leases past due 90 days or more  $1,632  $690  $787  $1,632  $787
Nonaccrual loans and leases  $16,112  $16,553  $18,673  $16,112  $18,673
Nonperforming loans and other real estate  $30,954  $35,819  $38,230  $30,954  $38,230
Other real estate owned  $3,382  $3,625  $4,012  $3,382  $4,012
Total nonperforming assets  $46,072  $50,630  $53,395  $46,072  $53,395
Total troubled debt restructurings  $9,828  $14,951  $14,758  $9,828  $14,758
Gross charge-offs  $3,295  $1,479  $2,656  $6,597  $7,142
Recoveries  $2,309  $839  $378  $4,033  $2,146
Net charge-offs/(recoveries)  $986  $640  $2,278  $2,564  $4,996
                
  
  
CONSOLIDATED BALANCE SHEETS 
(Dollar amounts in thousands, except per share data) 
  
   September 30,
 2015
  December 31,
 2014
 
   (unaudited)  
ASSETS         
Cash and due from banks  $63,278   $78,102  
Federal funds sold   -    8,000  
Securities available-for-sale   885,836    897,053  
Loans:           
Commercial   1,040,677    1,044,522  
Residential   451,425    469,172  
Consumer   272,235    266,656  
    1,764,337    1,780,350  
(Less) plus:           
Net deferred loan costs   2,330    1,078  
Allowance for loan losses   (19,925 )  (18,839 )
    1,746,742    1,762,589  
Restricted stock   10,838    16,404  
Accrued interest receivable   12,265    11,593  
Premises and equipment, net   50,834    51,802  
Bank-owned life insurance   81,961    80,730  
Goodwill   39,489    39,489  
Other intangible assets   3,375    3,901  
Other real estate owned   3,382    3,965  
Other assets   44,833    48,857  
TOTAL ASSETS  $2,942,833   $3,002,485  
            
LIABILITIES AND SHAREHOLDERS' EQUITY           
Deposits:           
Non-interest-bearing  $521,310   $556,389  
Interest-bearing:           
Certificates of deposit exceeding the FDIC insurance limits   47,154    53,733  
Other interest-bearing deposits   1,850,125    1,847,075  
    2,418,589    2,457,197  
Short-term borrowings   23,336    48,015  
FHLB advances   13,251    12,886  
Other liabilities   79,066    90,173  
TOTAL LIABILITIES   2,534,242    2,608,271  
            
Shareholders' equity           
Common stock, $.125 stated value per share;           
Authorized shares-40,000,000           
Issued shares-14,557,815 in 2015 and 14,538,132 in 2014           
Outstanding shares-12,703,869 in 2015 and 12,962,607 in 2014   1,817    1,815  
Additional paid-in capital   72,916    72,405  
Retained earnings   394,761    377,970  
Accumulated other comprehensive loss   (8,758 )  (14,529 )
Less: Treasury shares at cost-1,853,946 in 2015 and 1,575,525 in 2014   (52,145 )  (43,447 )
TOTAL SHAREHOLDERS' EQUITY   408,591    394,214  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $2,942,833   $3,002,485  
         
  
  
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 
(Dollar amounts in thousands, except per share data) 
  
   Three Months Ended
 September 30,
 Nine Months Ended
 September 30,
 
   2015  2014  2015  2014  
   (unaudited)  (unaudited)  (unaudited)  (unaudited)  
INTEREST INCOME:                  
Loans, including related fees  $21,478  $21,939  $63,048  $65,782  
Securities:                  
Taxable   3,918   4,196   11,970   12,938  
Tax-exempt   1,806   1,782   5,375   5,294  
Other   401   459   1,265   1,301  
TOTAL INTEREST INCOME   27,603   28,376   81,658   85,315  
INTEREST EXPENSE:                  
Deposits   963   1,088   2,980   3,611  
Short-term borrowings   22   49   54   85  
Other borrowings   42   94   129   726  
TOTAL INTEREST EXPENSE   1,027   1,231   3,163   4,422  
NET INTEREST INCOME   26,576   27,145   78,495   80,893  
Provision for loan losses   1,050   1,506   3,650   3,110  
NET INTEREST INCOME AFTER PROVISION                  
FOR LOAN LOSSES   25,526   25,639   74,845   77,783  
NON-INTEREST INCOME:                  
Trust and financial services   1,382   1,386   4,127   4,289  
Service charges and fees on deposit accounts   2,688   2,813   7,557   8,058  
Other service charges and fees   3,080   3,112   8,918   8,940  
Securities gains/(losses), net   9   -   23   (1 )
Insurance commissions   1,693   2,091   5,202   5,620  
Gain on sales of mortgage loans   611   519   1,512   1,352  
Other   488   573   2,451   1,676  
TOTAL NON-INTEREST INCOME   9,951   10,494   29,790   29,934  
NON-INTEREST EXPENSE:                  
Salaries and employee benefits   14,963   14,081   45,105   42,064  
Occupancy expense   1,756   1,776   5,322   5,490  
Equipment expense   1,736   1,905   5,210   5,467  
FDIC Expense   468   537   1,348   1,496  
Other   5,229   6,406   16,470   17,706  
TOTAL NON-INTEREST EXPENSE   24,152   24,705   73,455   72,223  
INCOME BEFORE INCOME TAXES   11,325   11,428   31,180   35,494  
Provision for income taxes   2,927   3,156   8,098   10,903  
NET INCOME   8,398   8,272   23,082   24,591  
OTHER COMPREHENSIVE INCOME                  
Change in unrealized gains/losses on securities, net of reclassifications and taxes   4,471   1,879   1,669   11,298  
Change in funded status of post retirement benefits, net of taxes   819   116   4,102   346  
COMPREHENSIVE INCOME  $13,688  $10,267  $28,853  $36,235  
PER SHARE DATA                  
Basic and Diluted Earnings per Share  $0.65  $0.62  $1.79  $1.85  
Weighted average number of shares outstanding (in thousands)   12,773   13,269   12,874   13,325  

Contact Information

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