First Financial Corporation Reports 3rd Quarter 2013 Results

Marketwired

TERRE HAUTE, IN--(Marketwired - Oct 29, 2013) -  First Financial Corporation (NASDAQ: THFF) today announced results for the three and nine months ended September 30, 2013. Net income of $8.5 million and $22.6 million for the three and nine months, respectively, compared to $8.1 million and $24.2 million for the same periods of 2012. Return on assets for the nine and three months ended September 30, 2013 was 1.02% and 1.15%, respectively, compared to 1.12% and 1.16% for the nine and three months ended September 30, 2012.

Net interest income for the third quarter of 2013 was $27.8 million, compared to the $27.4 million reported for the same period of 2012. Net interest income for the nine months ended September 30, 2013 was $79.7 million compared to the $82.2 million reported for the same period of 2012. The net interest margin at September 30, 2013 was 4.16%, compared to 4.41% reported at September 30, 2012.

The provision for loan losses for the three months ended September 30, 2013 was $495 thousand compared to the $2.6 million provision for the third quarter of 2012. For the nine months ended September 30, 2013 and 2012, the provision expense was $6.5 million and $7.3 million, respectively.

Non-interest income for the three months ended September 30, 2013 and 2012 was $9.6 million and $9.7 million, respectively. For the nine months ended September 30, 2013, non-interest income of $29.2 million increased over the $29.0 million for the same period of 2012.

Non-interest expense for the three months ended September 30, 2013 was $24.8 million compared to $23.0 million in 2012. For the nine months ended September 30, 2013, non-interest expense increased 1.3% to $70.4 million compared to $69.5 million for the nine months ended September 30, 2012. Full time equivalent employees have increased by 4% since September 30, 2012 as a result of the expansion of the branch network.

Total loans at September 30, 2013 stood at $1.81 billion compared to the $1.86 billion reported the same time a year ago. Deposits increased by $227.4 million to $2.5 billion.

Book value per share was $28.19, a 1.18% increase from $27.86 at September 30, 2012. Shareholders' equity increased 2.8% to $375.1 million from $368.8 million on September 30, 2012.

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)  
   
    September 30, 2013     December 31, 2012  
    (unaudited)  
ASSETS                
Cash and due from banks   $ 80,899     $ 87,230  
Federal funds sold     3,420       20,800  
Securities available-for-sale     872,675       691,000  
Loans:                
Commercial     1,057,823       1,088,144  
Residential     482,477       496,237  
Consumer     269,282       268,507  
      1,809,582       1,852,888  
Less:                
Unearned Income     (977 )     (952 )
Allowance for loan losses     (22,004 )     (21,958 )
      1,786,601       1,829,978  
Restricted Stock     21,050       21,292  
Accrued interest receivable     11,767       12,024  
Premises and equipment, net     51,875       47,308  
Bank-owned life insurance     78,679       77,295  
Goodwill     39,489       37,612  
Other intangible assets     5,253       3,893  
Other real estate owned     9,249       7,722  
FDIC Indemnification Asset     1,171       2,632  
Other assets     55,341       56,622  
TOTAL ASSETS   $ 3,017,469     $ 2,895,408  
LIABILITIES AND SHAREHOLDERS' EQUITY                
Deposits:                
Non-interest-bearing   $ 491,826     $ 465,954  
Interest-bearing:                
Certificates of deposit of $100 or more     187,305       213,610  
Other interest-bearing deposits     1,807,897       1,596,570  
      2,487,028       2,276,134  
Short-term borrowings     27,929       40,551  
Other borrowings     58,362       119,705  
Other liabilities     69,073       86,896  
TOTAL LIABILITIES     2,642,392       2,523,286  
Shareholders' equity                
Common stock, $.125 stated value per share;                
Authorized shares-40,000,000                
Issued shares-14,516,113 in 2013 and 14,490,609 in 2012                
Outstanding shares-13,307,498 in 2013 and 13,287,348 in 2012     1,810       1,808  
Additional paid-in capital     70,537       69,989  
Retained earnings     354,565       338,342  
Accumulated other comprehensive income (loss)     (21,128 )     (7,472 )
Less: Treasury shares at cost-1,208,615 in 2013 and 1,203,261 in 2012     (30,707 )     (30,545 )
TOTAL SHAREHOLDERS' EQUITY     375,077       372,122  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 3,017,469     $ 2,895,408  
                 
                 
                 
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,
 
    2013     2012     2013     2012  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
INTEREST INCOME:                                
Loans, including related fees   $ 22,510     $ 24,725     $ 68,540     $ 75,149  
Securities:                                
Taxable     5,038       3,308       11,732       10,339  
Tax-exempt     1,750       1,827       5,281       5,442  
Other     421       568       1,413       1,781  
TOTAL INTEREST INCOME     29,719       30,428       86,966       92,711  
INTEREST EXPENSE:                                
Deposits     1,349       1,881       4,625       6,714  
Short-term borrowings     23       33       62       116  
Other borrowings     549       1,108       2,570       3,648  
TOTAL INTEREST EXPENSE     1,921       3,022       7,257       10,478  
NET INTEREST INCOME     27,798       27,406       79,709       82,233  
Provision for loan losses     495       2,559       6,476       7,304  
NET INTEREST INCOME AFTER PROVISION                                
FOR LOAN LOSSES     27,303       24,847       73,233       74,929  
NON-INTEREST INCOME:                                
Trust and financial services     1,402       1,413       4,331       4,332  
Service charges and fees on deposit accounts     2,693       2,560       7,341       7,166  
Other service charges and fees     2,818       2,506       8,044       7,237  
Securities gains/(losses), net     --       17       7       677  
Total impairment losses     --       --       --       (11 )
Loss recognized in other comprehensive loss     --       --       --       --  
Net impairment loss recognized in earnings     --       --       --       (11 )
Insurance commissions     1,896       1,736       5,800       5,426  
Gain on sales of mortgage loans     583       1,253       2,489       2,970  
Other     245       203       1,165       1,159  
TOTAL NON-INTEREST INCOME     9,637       9,688       29,177       28,956  
NON-INTEREST EXPENSE:                                
Salaries and employee benefits     13,773       13,695       41,082       42,005  
Occupancy expense     1,544       1,465       4,642       4,370  
Equipment expense     1,686       1,335       4,724       4,016  
FDIC Expense     500       494       1,559       1,449  
Other     7,316       5,975       18,394       17,646  
TOTAL NON-INTEREST EXPENSE     24,819       22,964       70,401       69,486  
INCOME BEFORE INCOME TAXES     12,121       11,571       32,009       34,399  
Provision for income taxes     3,649       3,480       9,398       10,160  
NET INCOME     8,472       8,091       22,611       24,239  
OTHER COMPREHENSIVE INCOME (LOSS)                                
Change in unrealized gains/losses on securities, net of reclassifications     (3,793 )     3,123       (24,665 )     3,763  
Tax effect     2,582       (1,249 )     10,117       (1,505 )
      (1,211 )     1,874       (14,548 )     2,258  
Change in funded status of post retirement benefits     566       645       1,486       1,932  
Tax effect     (226 )     (258 )     (594 )     (773 )
      340       387       892       1,159  
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)     (871 )     2,261       (13,656 )     3,417  
COMPREHENSIVE INCOME (LOSS)   $ 7,601     $ 10,352     $ 8,955     $ 27,656  
PER SHARE DATA                                
Basic and Diluted Earnings per Share   $ 0.64     $ 0.61     $ 1.70     $ 1.83  
Dividends per Share   $ --     $ --     $ 0.48     $ 0.47  
Weighted average number of shares outstanding (in thousands)     13,307       13,238       13,305       13,233  
                                 
                                 
                                 
Key Ratios   For the Nine Months Ended  
    September 30,     September 30,  
    2013     2012  
Return on average assets     1.02 %     1.12 %
Return on average common shareholder's equity     8.01 %     9.06 %
Average common shareholder's equity to average assets     12.78 %     12.86 %
End of period tangible common equity to tangible assets     11.11 %     11.52 %
Book value per share   $ 28.19     $ 27.86  
Tangible book value per share   $ 24.82     $ 24.70  
Risk-based capital - Tier 1     15.94 %     15.15 %
Risk-based capital - Total     16.94 %     16.12 %
Net interest margin     4.16 %     4.41 %
Efficiency Ratio     62.25 %     60.04 %
Net charge-offs to average loans and leases     0.38 %     0.44 %
Loan and lease loss reserve to loans and leases     1.22 %     1.15 %
Nonperforming assets to loans and leases     1.77 %     2.93 %
                 
Asset Quality   For the Nine Months Ended
    September 30,   September 30,
    2013   2012
Accruing loans and leases past due 90 days or more   $ 1,025   $ 3,772
Nonaccrual loans and leases     21,800     41,913
Other real estate owned     9,249     8,670
Total nonperforming assets   $ 32,074   $ 54,355
Contact:
For more information contact:
Rodger A. McHargue
(812) 238-6334

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