SOURCE: First Financial Corp.

First Financial Corp.

October 25, 2016 15:00 ET

First Financial Corporation reports 3rd Quarter results

TERRE HAUTE, IN--(Marketwired - October 25, 2016) - First Financial Corporation (NASDAQ: THFF) today announced results for the third quarter of 2016. Net income for the quarter was $8.2 million compared to $8.4 million for the same period of 2015. Diluted net income per common share increased 3.08% to $0.67 from $0.65 for the comparable period of 2015.

The Corporation further reported net income of $30.1 million for the nine months ended September 30, 2016 versus $23.1 million for the comparable period of 2015, an increase of 30.30%. Diluted net income per common share also increased 35.75% to $2.43 for the nine months ended September 30, 2016 versus $1.79 for the comparable period of 2015. This increase included an after-tax gain of $5.75 million on the sale of the Corporation's insurance subsidiary. Return on assets for the nine months ended September 30, 2016 was 1.35% compared to 1.03% for the nine months ended September 30, 2015.

Norman L. Lowery, President and Chief Executive Officer, commented, "We are pleased with our third quarter 2016 results. We had another solid quarter of loan growth and our asset quality remains excellent."

Book value per share was $34.66 at September 30, 2016, a 7.77% increase from the $32.16 at September 30, 2015. Shareholders' equity increased 3.38% to $422.4 million from $408.6 million on September 30, 2015.

On February 3, 2016, the Corporation announced a stock repurchase plan to acquire 5% of the Corporation's outstanding common stock. The Corporation has repurchased a total of 565,618 shares under the plan.

Average total loans for the third quarter of 2016 were $1.80 billion, an increase of $31.8 million or 1.80%, versus $1.77 billion for the comparable period in 2015. Total loans outstanding were $1.82 billion, an increase from $1.77 billion as of September 30, 2015. On a linked quarter basis, average total loans increased $19.6 million, or 1.10%, from $1.78 billion for the quarter ending June 30, 2016.

Average total deposits at September 30, 2016 were $2.41 billion versus $2.45 billion as of September 30, 2015. On a linked quarter basis, average deposits were $2.40 billion compared to $2.42 billion on June 30, 2016.

The company's tangible common equity to tangible asset ratio was 12.93% at September 30, 2016, compared to 12.61% at September 30, 2015.

Net interest income for the third quarter of 2016 was $26.4 million compared to the $26.6 million reported for the same period of 2015. The net interest margin for the nine months ended September 30, 2016 increased to 4.05% compared to the 4.04% reported at September 30, 2015.

The provision for loan losses for the three months ended September 30, 2016 was $1.09 million compared to $1.05 million for the third quarter of 2015. Net charge-offs were $1.5 million for the third quarter of 2016 compared to $986 thousand in the same period of 2015. The Corporation's allowance for loan losses as of September 30, 2016 was $19.1 million compared to $19.9 million as of September 30, 2015. The allowance for loan losses as a percent of total loans was 1.05% as of September 30, 2016 compared to 1.13% as of September 30, 2015.

Nonperforming loans decreased 6.19% to $29.0 million as of September 30, 2016 versus $31.0 million as of September 30, 2015. The ratio of nonperforming loans to total loans and leases was 1.59% as of September 30, 2016 versus 1.75% as of September 30, 2015.

Non-interest income for the three months ended September 30, 2016 was $7.92 million compared to $9.95 million as of September 30, 2015. The decline was primarily related to the sale of the Corporation's insurance subsidiary, which reduced insurance commissions by $1.66 million year-over-year.

Non-interest expense for the three months ended September 30, 2016 decreased $2.1 million to $22.0 million compared to $24.2 million in 2015. On a year-over-year basis for the quarter, salaries and employee benefits decreased $2.1 million driven by lower health insurance and pension expense. The Corporation's efficiency ratio was 55.97% for the quarter ending September 30, 2016 versus 65.02% for the same period in 2015.

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 in Indiana.

       
       
   Three Months Ended  Nine Months Ended
   September 30,  June 30,  September 30,  September 30,  September 30,
   2016  2016  2015  2016  2015
END OF PERIOD BALANCES                    
 Assets  $3,019,323  $2,958,016  $2,942,833  $3,019,323  $2,942,833
 Deposits  $2,479,241  $2,394,334  $2,418,589  $2,479,241  $2,418,589
 Loans  $1,821,525  $1,802,810  $1,766,667  $1,821,525  $1,766,667
 Allowance for Loan Losses  $19,074  $19,504  $19,925  $19,074  $19,925
 Total Equity  $422,374  $413,224  $408,591  $422,374  $408,591
 Tangible Common Equity  $385,766  $376,472  $365,727  $385,766  $365,727
                     
AVERAGE BALANCES                    
 Total Assets  $2,977,329  $2,947,153  $2,954,983  $2,961,163  $2,977,719
 Earning Assets  $2,742,151  $2,747,214  $2,733,630  $2,738,097  $2,747,516
 Investments  $936,059  $945,948  $960,139  $946,001  $968,997
 Loans  $1,800,796  $1,781,201  $1,769,009  $1,779,936  $1,766,097
 Total Deposits  $2,399,596  $2,422,302  $2,418,162  $2,413,522  $2,447,282
 Interest-Bearing Deposits  $1,855,077  $1,877,092  $1,884,420  $1,868,413  $1,905,714
 Interest-Bearing Liabilities  $59,815  $44,852  $58,957  $50,231  $49,053
 Total Equity  $433,511  $406,382  $401,840  $418,289  $403,550
                     
INCOME STATEMENT DATA                    
 Net Interest Income  $26,351  $26,059  $26,576  $78,567  $78,495
 Net Interest Income Fully Tax Equivalent  $27,907  $27,602  $28,134  $83,200  $83,184
 Provision for Loan Losses  $1,091  $435  $1,050  $2,361  $3,650
 Non-interest Income  $7,923  $8,214  $9,951  $38,503  $29,790
 Non-interest Expense  $22,006  $22,760  $24,152  $68,113  $73,455
 Net Income  $8,162  $8,232  $8,398  $30,069  $23,082
                     
PER SHARE DATA                    
 Basic and Diluted Net Income Per Common Share  $0.67  $0.68  $0.65  $2.43  $1.79
 Cash Dividends Declared Per Common Share  $-  $0.5  $-  $0.5  $0.49
 Book Value Per Common Share  $34.66  $33.89  $32.16  $34.66  $32.16
 Tangible Book Value Per Common Share  $31.66  $30.88  $28.79  $31.66  $28.79
 Basic Weighted Average Common Shares Outstanding   12,186   12,236   12,773   12,356   12,874
                
                
       
Key Ratios  Three Months Ended   Nine Months Ended  
   September 30,   June 30,   September 30,   September 30,   September 30,  
   2016   2016   2015   2016   2015  
Return on average assets  1.10 % 1.12 % 1.14 % 1.35 % 1.03 %
Return on average common shareholder's equity  7.23 % 8.04 % 8.36 % 9.56 % 7.61 %
Efficiency ratio  61.42 % 63.55 % 63.42 % 55.97 % 65.02 %
Average equity to average assets  14.56 % 13.89 % 13.60 % 14.13 % 13.55 %
Net interest margin  4.05 % 4.04 % 4.12 % 4.05 % 4.04 %
Net charge-offs to average loans and leases  0.34 % 0.19 % 0.22 % 0.24 % 0.19 %
Loan and lease loss reserve to loans and leases  1.05 % 1.08 % 1.13 % 1.05 % 1.13 %
Loan and lease loss reserve to nonperforming loans and other real estate  65.69 % 70.76 % 64.37 % 65.69 % 64.37 %
Nonperforming loans to loans  1.61 % 1.53 % 1.75 % 1.61 % 1.75 %
Tier 1 leverage  13.23 % 13.08 % 12.92 % 13.23 % 12.92 %
Risk-based capital - Tier 1  17.46 % 17.46 % 17.73 % 17.46 % 17.73 %
     
       
       
Asset Quality  Three Months Ended  Nine Months Ended
   September 30,  June 30,  September 30,  September 30,  September 30,
   2016  2016  2015  2016  2015
Accruing loans and leases past due 30-89 days  $6,983  $7,435  $6,778  $6,983  $6,778
Accruing loans and leases past due 90 days or more  $1,144  $1,044  $1,632  $1,144  $1,632
Nonaccrual loans and leases  $16,235  $14,526  $16,112  $16,235  $16,112
Nonperforming loans and other real estate  $29,037  $27,562  $30,954  $29,037  $30,954
Other real estate owned  $2,772  $2,837  $3,382  $2,772  $3,382
Total nonperforming assets  $40,548  $38,998  $46,072  $40,548  $46,072
Total troubled debt restructurings  $8,886  $9,155  $9,828  $8,886  $9,828
Gross charge-offs  $2,724  $1,842  $3,295  $6,206  $6,597
Recoveries  $1,202  $986  $2,309  $2,973  $4,033
Net charge-offs/(recoveries)  $1,522  $856  $986  $3,233  $2,564
  
  
  
CONSOLIDATED BALANCE SHEETS 
(Dollar amounts in thousands, except per share data) 
  
   September 30,
 2016
  December 31,
 2015
 
   (unaudited)  
ASSETS           
Cash and due from banks  $67,396   $88,695  
Federal funds sold   44,505    9,815  
Securities available-for-sale   866,701    891,082  
Loans:           
Commercial   1,083,129    1,043,980  
Residential   430,346    444,447  
Consumer   304,840    272,896  
    1,818,315    1,761,323  
(Less) plus:           
Net deferred loan costs   3,210    2,485  
Allowance for loan losses   (19,074 )  (19,946 )
    1,802,451    1,743,862  
Restricted stock   10,848    10,838  
Accrued interest receivable   12,846    11,733  
Premises and equipment, net   49,688    50,531  
Bank-owned life insurance   83,377    82,323  
Goodwill   34,355    39,489  
Other intangible assets   2,253    3,178  
Other real estate owned   2,772    3,466  
Other assets   42,131    44,573  
TOTAL ASSETS  $3,019,323   $2,979,585  
            
LIABILITIES AND SHAREHOLDERS' EQUITY           
Deposits:           
Non-interest-bearing  $557,185   $563,302  
Interest-bearing:           
Certificates of deposit exceeding the FDIC insurance limits   44,778    46,753  
Other interest-bearing deposits   1,877,278    1,832,314  
    2,479,241    2,442,369  
Short-term borrowings   31,370    33,831  
FHLB advances   10,132    12,677  
Other liabilities   76,206    80,392  
TOTAL LIABILITIES   2,596,949    2,569,269  
            
Shareholders' equity           
Common stock, $.125 stated value per share;           
Authorized shares-40,000,000           
Issued shares-14,578,758 in 2016 and 14,557,815 in 2015           
Outstanding shares-12,185,737 in 2016 and 12,740,018 in 2015   1,819    1,817  
Additional paid-in capital   73,907    73,396  
Retained earnings   419,585    395,633  
Accumulated other comprehensive loss   (2,412 )  (9,401 )
Less: Treasury shares at cost-2,393,021 in 2016 and 1,817,797 in 2015   (70,525 )  (51,129 )
TOTAL SHAREHOLDERS' EQUITY   422,374    410,316  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $3,019,323   $2,979,585  
 
 
 
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,
   2016   2015  2016  2015
   (unaudited)   (unaudited)  (unaudited)  (unaudited)
INTEREST INCOME:             
Loans, including related fees  $21,753   $21,478  $64,208  $63,048
Securities:             
Taxable  3,506   3,918  11,031  11,970
Tax-exempt  1,826   1,806  5,466  5,375
Other  365   401  1,096  1,265
TOTAL INTEREST INCOME  27,450   27,603  81,801  81,658
INTEREST EXPENSE:             
Deposits  1,016   963  3,033  2,980
Short-term borrowings  51   22  100  54
Other borrowings  32   42  101  129
TOTAL INTEREST EXPENSE  1,099   1,027  3,234  3,163
NET INTEREST INCOME  26,351   26,576  78,567  78,495
Provision for loan losses  1,091   1,050  2,361  3,650
NET INTEREST INCOME AFTER PROVISION             
FOR LOAN LOSSES  25,260   25,526  76,206  74,845
NON-INTEREST INCOME:             
Trust and financial services  1,270   1,382  3,896  4,127
Service charges and fees on deposit accounts  2,765   2,688  7,870  7,557
Other service charges and fees  3,062   3,080  9,211  8,918
Securities gains/(losses), net  13   9  26  23
Gain on sale of certain assets and liabilities of insurance brokerage  (199 ) -  12,822  -
Insurance commissions  35   1,693  2,340  5,202
Gain on sales of mortgage loans  522   611  1,407  1,512
Other  455   488  931  2,451
TOTAL NON-INTEREST INCOME  7,923   9,951  38,503  29,790
NON-INTEREST EXPENSE:             
Salaries and employee benefits  12,883   14,963  39,620  45,105
Occupancy expense  1,785   1,756  5,238  5,322
Equipment expense  1,878   1,736  5,523  5,210
FDIC Expense  356   468  1,210  1,348
Other  5,104   5,229  16,522  16,470
TOTAL NON-INTEREST EXPENSE  22,006   24,152  68,113  73,455
INCOME BEFORE INCOME TAXES  11,177   11,325  46,596  31,180
Provision for income taxes  3,015   2,927  16,527  8,098
NET INCOME  8,162   8,398  30,069  23,082
OTHER COMPREHENSIVE INCOME             
Change in unrealized gains/losses on securities, net of reclassifications and taxes  777   4,471  6,077  1,669
Change in funded status of post retirement benefits, net of taxes  304   819  912  4,102
COMPREHENSIVE INCOME  $9,243   $13,688  $37,058  $28,853
PER SHARE DATA             
Basic and Diluted Earnings per Share  $0.67   $0.65  $2.43  $1.79
Weighted average number of shares outstanding (in thousands)  12,186   12,773  12,356  12,874

Contact Information

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