First Financial Corporation Reports 3rd Quarter Results
/EINPresswire.com/ -- 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 September September September
30, June 30, 30, 30, 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 September September September
30, June 30, 30, 30, 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 September September September
30, June 30, 30, 30, 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, December 31,
2015 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 Nine Months Ended
September 30, 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
=========== =========== =========== ===========
For more information contact:
Rodger A. McHargue
(812) 238-6334
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