First Financial Corporation Reports 2nd Quarter 2012 Results

Marketwired

TERRE HAUTE, IN--(Marketwire -07/30/12)- First Financial Corporation (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:
For more information contact:
Rodger A. McHargue
(812) 238-6334

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