FIRST FINANCIAL CORPORATION
One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000
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| | For more information contact: |
| April 29, 2014 | Rodger A. McHargue at (812) 238-6334 |
First Financial Corporation reports 1st Quarter 2014 results
TERRE HAUTE, INDIANA – First Financial Corporation (NASDAQ:THFF) today announced results for the three months ended March 31, 2014. Net income of $7.8 million increased 1.8% compared to $7.7 million for the same period of 2013. Return on assets for the first quarter of 2014 was 1.03% compared to 1.05% for the three months ended March 31, 2013.
Net interest income for the first quarter of 2014 was $27.1 million, a 3.7% increase, from the $26.2 million reported for the same period of 2013. The net interest margin at March 31, 2014 was 4.10%, compared to 4.09% reported at March 31, 2013.
The provision for loan losses for the three months ended March 31, 2014 was $1.96 million compared to the $3.02 million provision for the first quarter of 2013. Net charge-offs were $1.39 million for the first quarter of 2014 compared to a net recovery in 2013 of $1.04 million.
Non-interest income for the three months ended March 31, 2014 and 2013 was $10.1 million and $9.9 million, respectively. Gain on sale of loans decreased $587 thousand while the income from service charges on deposits and other service fees increased by virtually the same amount.
Non-interest expense for the three months ended March 31, 2014 was $23.7 million compared to $22.1 million in 2013. The expansion of the branch network in the last half of 2013 resulted in increased occupancy and equipment expense as well as a 4% increase in full-time equivalent employees when comparing the first quarters of 2014 and 2013.
Total loans at March 31, 2014 stood at $1.78 billion compared to the $1.82 billion reported the same time a year ago. Deposits increased by $157.2 million to $2.5 billion at March 31, 2014 from March 31, 2013. Reduced demand for loans allowed for the reduction of Federal Home Loan Bank borrowings by $76.4 million during this period.
Book value per share for the first quarter of 2014 was $29.90, a 5.16% increase from $28.43 at March 31, 2013. Shareholders’ equity increased 5.54% to $399.3 million from $378.4 million on March 31, 2013.
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)
|
| | | | | | | |
| | March 31,
2014 | | December 31,
2013 |
| | (unaudited) |
| ASSETS | |
| | |
|
| Cash and due from banks | $ | 83,988 |
| | $ | 71,033 |
|
| Federal funds sold | 9,791 |
| | 4,276 |
|
| Securities available-for-sale | 921,165 |
| | 914,560 |
|
| Loans: | |
| | |
|
| Commercial | 1,037,518 |
| | 1,042,138 |
|
| Residential | 481,663 |
| | 482,377 |
|
| Consumer | 265,428 |
| | 268,033 |
|
| | 1,784,609 |
| | 1,792,548 |
|
| Less: | |
| | |
|
| Unearned Income | (635 | ) | | (1,120 | ) |
| Allowance for loan losses | (20,408 | ) | | (20,068 | ) |
| | 1,763,566 |
| | 1,771,360 |
|
| Restricted Stock | 21,057 |
| | 21,057 |
|
| Accrued interest receivable | 11,451 |
| | 11,554 |
|
| Premises and equipment, net | 50,655 |
| | 51,449 |
|
| Bank-owned life insurance | 79,444 |
| | 79,035 |
|
| Goodwill | 39,489 |
| | 39,489 |
|
| Other intangible assets | 4,656 |
| | 4,935 |
|
| Other real estate owned | 4,806 |
| | 5,291 |
|
| FDIC Indemnification Asset | 754 |
| | 1,055 |
|
| Other assets | 41,720 |
| | 43,624 |
|
| TOTAL ASSETS | $ | 3,032,542 |
| | $ | 3,018,718 |
|
| | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | |
|
| Deposits: | |
| | |
|
| Non-interest-bearing | $ | 535,333 |
| | $ | 506,815 |
|
| Interest-bearing: | |
| | |
|
| Certificates of deposit of $100 or more | 171,165 |
| | 179,177 |
|
| Other interest-bearing deposits | 1,800,516 |
| | 1,772,799 |
|
| | 2,507,014 |
| | 2,458,791 |
|
| Short-term borrowings | 35,710 |
| | 59,592 |
|
| Other borrowings | 38,214 |
| | 58,288 |
|
| Other liabilities | 52,275 |
| | 55,852 |
|
| TOTAL LIABILITIES | 2,633,213 |
| | 2,632,523 |
|
| | | | |
| Shareholders’ equity | |
| | |
|
| Common stock, $.125 stated value per share; | | | |
|
| Authorized shares-40,000,000 | |
| | |
|
| Issued shares-14,538,132 in 2014 and 14,516,113 in 2013 | |
| | |
|
| Outstanding shares-13,355,272 in 2014 and 13,343,029 in 2013 | 1,812 |
| | 1,811 |
|
| Additional paid-in capital | 71,315 |
| | 71,074 |
|
| Retained earnings | 364,914 |
| | 357,083 |
|
| Accumulated other comprehensive income (loss) | (8,551 | ) | | (13,969 | ) |
| Less: Treasury shares at cost-1,182,860 in 2014 and 1,173,084 in 2013 | (30,161 | ) | | (29,804 | ) |
| TOTAL SHAREHOLDERS’ EQUITY | 399,329 |
| | 386,195 |
|
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,032,542 |
| | $ | 3,018,718 |
|
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
|
| | | | | | | |
| | Three Months Ended
March 31, |
| | 2014 | | 2013 |
| | (unaudited) | | (unaudited) |
| INTEREST INCOME: | |
| | |
|
| Loans, including related fees | $ | 22,218 |
| | $ | 23,454 |
|
| Securities: | |
| | |
|
| Taxable | 4,444 |
| | 3,214 |
|
| Tax-exempt | 1,746 |
| | 1,770 |
|
| Other | 416 |
| | 504 |
|
| TOTAL INTEREST INCOME | 28,824 |
| | 28,942 |
|
| INTEREST EXPENSE: | |
| | |
|
| Deposits | 1,290 |
| | 1,742 |
|
| Short-term borrowings | 14 |
| | 20 |
|
| Other borrowings | 378 |
| | 1,007 |
|
| TOTAL INTEREST EXPENSE | 1,682 |
| | 2,769 |
|
| NET INTEREST INCOME | 27,142 |
| | 26,173 |
|
| Provision for loan losses | 1,960 |
| | 3,021 |
|
| NET INTEREST INCOME AFTER PROVISION | |
| | |
|
| FOR LOAN LOSSES | 25,182 |
| | 23,152 |
|
| NON-INTEREST INCOME: | |
| | |
|
| Trust and financial services | 1,489 |
| | 1,526 |
|
| Service charges and fees on deposit accounts | 2,484 |
| | 2,254 |
|
| Other service charges and fees | 2,839 |
| | 2,500 |
|
| Securities gains/(losses), net | — |
| | 4 |
|
| Insurance commissions | 1,913 |
| | 1,963 |
|
| Gain on sales of mortgage loans | 376 |
| | 963 |
|
| Other | 1,010 |
| | 667 |
|
| TOTAL NON-INTEREST INCOME | 10,111 |
| | 9,877 |
|
| NON-INTEREST EXPENSE: | |
| | |
|
| Salaries and employee benefits | 14,096 |
| | 13,596 |
|
| Occupancy expense | 1,925 |
| | 1,522 |
|
| Equipment expense | 1,658 |
| | 1,501 |
|
| FDIC Expense | 487 |
| | 557 |
|
| Other | 5,539 |
| | 5,023 |
|
| TOTAL NON-INTEREST EXPENSE | 23,705 |
| | 22,199 |
|
| INCOME BEFORE INCOME TAXES | 11,588 |
| | 10,830 |
|
| Provision for income taxes | 3,757 |
| | 3,137 |
|
| NET INCOME | 7,831 |
| | 7,693 |
|
| OTHER COMPREHENSIVE INCOME (LOSS) | |
| | |
|
| Change in unrealized gains/losses on securities, net of reclassifications and taxes | 5,303 |
| | (1,667 | ) |
| Change in funded status of post retirement benefits, net of taxes | 115 |
| | 214 |
|
| COMPREHENSIVE INCOME (LOSS) | $ | 13,249 |
| | $ | 6,240 |
|
| PER SHARE DATA | |
| | |
|
| Basic and Diluted Earnings per Share | $ | 0.59 |
| | $ | 0.58 |
|
| Weighted average number of shares outstanding (in thousands) | 13,349 |
| | 13,300 |
|
|
| | | | | | | | |
| Key Ratios | | For the Three Months Ended |
| | | March 31, | | March 31, |
| | | 2014 | | 2013 |
| Return on average assets | | 1.03 | % | | 1.05 | % |
| Return on average common shareholder's equity | | 7.90 | % | | 8.21 | % |
| Average common shareholder's equity to average assets | | 13.08 | % | | 12.79 | % |
| End of period tangible common equity to tangible assets | | 11.89 | % | | 11.53 | % |
| Book value per share | | $ | 29.90 |
| | $ | 28.43 |
|
| Tangible book value per share | | $ | 26.60 |
| | $ | 25.34 |
|
| Risk-based capital - Tier 1 | | 16.63 | % | | 15.82 | % |
| Risk-based capital - Total | | 17.56 | % | | 16.97 | % |
| Net interest margin | | 4.10 | % | | 4.09 | % |
| Efficiency Ratio | | 62.30 | % | | 59.25 | % |
| Net charge-offs to average loans and leases | | 0.31 | % | | (0.23 | )% |
| Loan and lease loss reserve to loans and leases | | 1.14 | % | | 1.39 | % |
| Nonperforming assets to loans and leases | | 1.44 | % | | 2.63 | % |
|
| | | | | | | | |
| Asset Quality | | For the Three Months Ended |
| | | March 31, | | March 31, |
| | | 2014 | | 2013 |
| Accruing loans and leases past due 90 days or more | | $ | 1,153 |
| | $ | 1,262 |
|
| Nonaccrual loans and leases | | 19,798 |
| | 38,132 |
|
| Other real estate owned | | 4,806 |
| | 7,752 |
|
| Total nonperforming assets | | $ | 25,757 |
| | $ | 47,146 |
|
