First Financial Corporation Reports 2015 Results
/EINPresswire.com/ -- TERRE HAUTE, IN--(Marketwired - February 08, 2016) - First Financial Corporation (NASDAQ: THFF) today announced results for the fourth quarter of 2015 and the year ended December 31, 2015. Net income for the three months ending December 31, 2015 was $7.1 million compared to $9.2 million for the same period of 2014. The variance in income was, in part, driven by higher pension expense partially due to increased benefit plan cost from the use of a lower discount rate and the use of the updated mortality tables. Diluted net income per common share for the three month period ended December 31, 2015 was $0.56 compared to $0.71 for the comparable period of 2014.
The Corporation further reported net income of $30.2 million for the twelve months ended December 31, 2015 versus $33.8 million for the comparable period of 2014. The full year variance was also impacted by the pension expense discussed previously. Diluted net income per common share reported was $2.35 for the twelve months ended December 31, 2015 versus $2.55 for the comparable period of 2014. Return on assets for the twelve months ended December 31, 2015 was 1.01% compared to 1.12% for the twelve months ended December 31, 2014.
Book value per share was $32.21 at December 31, 2015, a 5.75% increase from the $30.46 at December 31, 2014. Shareholders' equity increased $16.1 million or 4.08% to $410.3 million from $394.2 million on December 31, 2014.
During 2015 the Corporation completed the announced stock repurchase plan to acquire 5% of the Corporation's outstanding common stock. Total shares repurchased under the plan were 667,700 valued at $21.6 million.
Average total loans for the fourth quarter of 2015 were $1.75 billion versus $1.80 billion for the comparable period in 2014 Total loans outstanding decreased $19.0 million from $1.78 billion as of December 31, 2014 to $1.76 billion as of December 31, 2015. On a linked quarter basis, average total loans decreased $19.7 million from $1.77 billion for the quarter ending September 30, 2015.
Average total deposits for the quarter ended December 31, 2015 were $2.44 billion versus $2.47 billion as of December 31, 2014. Non-interest bearing deposits, however, increased 4.87% while interest earning deposits decreased 1.48%. Higher cost time deposits decreased $95.6 million during 2015.
The company's tangible common equity to tangible asset ratio was 12.51% at December 31, 2015, compared to 11.86% at December 31, 2014, a 5.48% increase.
Net interest income for the fourth quarter of 2015 was $26.0 million compared to $26.9 million reported for the same period of 2014. The net interest margin for the quarter ended December 31, 2015 was 4.04% compared to 3.99% reported at December 31, 2014.
Asset quality remains strong with nonperforming loans and Oreo decreasing 16.3% to $28.9 million as of December 31, 2015 versus $34.5 million as of December 31, 2014. The ratio of nonperforming loans to total loans and leases also decreased to 1.64% as of December 31, 2015 versus 1.94% as of December 31, 2014.
The provision for loan losses for the three months ended December 31, 2015 was $1.1 million compared to the $2.0 million provision for the fourth quarter of 2014. Net charge-offs were $1.0 million for the fourth quarter of 2015 compared to $618 thousand in the same period of 2014. The Corporation's allowance for loan losses as of December 31, 2015 was $19.9 million compared to $18.8 million as of December 31, 2014. The allowance for loan losses as a percent of total loans was 1.13% as of December 31, 2015 compared to 1.06% as of December 31, 2014.
Non-interest income for the three months ended December 31, 2015 was $9.4 compared to $10.6 million in 2014. Non-interest income for the years ended December 31, 2015 and 2014 was $39.2 and $40.8 million, respectively. Increased income from interchange income and sale of mortgages effectively offset the reduced investment service income and income from the Corporation's insurance agency for 2015.
Non-interest expense for the three months ended December 31, 2015 increased $1.8 million to $24.9 million compared to $23.1 million in 2014. On a linked quarter basis, non-interest expense increased $791 thousand from $24.2 million for the quarter ended September 30, 2015. On a year-over-year basis, employee benefits increased $4.3 million due to the lower discount rate and the use of the updated mortality table previously discussed. The pension plan was frozen for the majority of employees as of December 31, 2012. Occupancy expenses decreased $240 thousand and equipment expense decreased $278 thousand for the year ended 2015. The Corporation's efficiency ratio was 67.51% for the quarter ending December 31, 2015 versus 59.11% 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 Year Ended
September
December 31, 30, December 31, December 31,
2015 2015 2014 2015 2014
END OF PERIOD
BALANCES
Assets $ 2,979,585 $ 2,942,833 $ 3,002,485 $ 2,979,585 $ 3,002,485
Deposits 2,442,369 2,418,589 2,457,197 2,442,369 2,457,197
Loans 1,763,808 1,766,667 1,781,428 1,763,808 1,781,428
Allowance for
Loan Losses 19,946 19,925 18,839 19.946 18,839
Total Equity 410,316 408,591 394,214 410,316 394,214
Tangible Common
Equity 367,649 365,727 350,824 367,649 350,824
AVERAGE BALANCES
Total Assets 2,974,567 2,954,983 3,027,478 2,976,931 3,020,068
Earning Assets 2,735,328 2,733,630 2,792,506 2,744,469 2,793,424
Investments 950,245 960,139 992,441 964,309 998,189
Loans 1,749,261 1,769,009 1,800,065 1,761,888 1,795,235
Total Deposits 2,443,478 2,418,162 2,469,170 2,446,331 2,461,253
Interest-
Bearing
Deposits 1,889,350 1,884,420 1,917,728 1,901,623 1,934,597
Interest-
Bearing
Borrowings 41,269 58,957 83,577 47,107 100,512
Total Equity 408,730 401,840 412,296 404,845 403,413
INCOME STATEMENT
DATA
Net Interest
Income 26,012 26,576 26,939 104,507 107,832
Net Interest
Income Fully
Tax Equivalent 27,561 28,134 28,504 110,744 114,039
Provision for
Loan Losses 1,050 1,050 1,962 4,700 5,072
Non-interest
Income 9,389 9,951 10,615 39,179 40,785
Non-interest
Expense 24,943 24,152 23,125 98,398 95,584
Net Income 7,114 8,398 9,181 30,196 33,772
PER SHARE DATA
Basic and
Diluted Net
Income Per
Common Share 0.56 0.65 0.71 2.35 2.55
Cash Dividends
Declared Per
Common Share 0.49 - 0.49 0.98 0.98
Book Value Per
Common Share 32.21 32.16 30.46 32.21 30.46
Tangible Book
Value Per
Common Share 28.86 28.79 27.11 28.86 27.11
Basic Weighted
Average Common
Shares
Outstanding 12,722 12,773 12,932 12,836 13,226
Key Ratios Three Months Ended Year Ended
September
December 31, 30, December 31, December 31,
2015 2015 2014 2015 2014
Return on
average assets 96% 1.14% 1.21% 1.01% 1.12%
Return on
average common
shareholder's
equity 6.96% 8.36% 8.91% 7.46% 8.37%
Efficiency ratio 67.51% 63.42% 59.11% 65.63% 61.74%
Average equity
to average
assets 13.74% 13.6% 13.62% 13.6% 13.36%
Net interest
margin 4.04% 4.12% 3.99% 4.04% 4.08%
Net charge-offs
to average
loans and
leases 0.20% 0.22% 0.14% 0.14% 0.31%
Loan and lease
loss reserve to
loans and
leases 1.13% 1.13% 1.06% 1.13% 1.06%
Loan and lease
loss reserve to
nonperforming
loans 0.78% 0.72% 0.06% 0.78% 0.60%
Nonperforming
loans to loans 1.46% 1.75% 1.76% 1.44% 1.76%
Tier 1 leverage 12.92% 12.92% 12.33% 12.92% 12.33%
Risk-based
capital - Tier
1 17.69% 17.30% 16.99% 17.69% 16.99%
Asset Quality Three Months Ended Year Ended
September
December 31, 30, December 31, December 31,
2015 2015 2014 2015 2014
Accruing loans
and leases past
due 30-89 days $ 12,294 $ 6,778 $ 13,444 $ 12,294 $ 13,444
Accruing loans
and leases past
due 90 days or
more $ 964 $ 1,632 $ 780 $ 964 $ 780
Nonaccrual loans
and leases $ 14,634 $ 16,112 $ 15,034 $ 14,634 $ 15,034
Nonperforming
loans $ 25,458 $ 30,954 $ 30,572 $ 25,458 $ 30,572
Other real
estate owned $ 3,466 $ 3,382 $ 3,965 $ 3,466 $ 3,965
Total
nonperforming
assets $ 43,799 $ 46,072 $ 49,639 $ 43,799 $ 49,639
Total troubled
debt
restructurings $ 9,860 $ 9,828 $ 14,758 $ 9,860 $ 14,758
Gross charge-
offs $ 1,931 $ 3,295 $ 2,308 $ 8,528 $ 9,450
Recoveries $ 902 $ 2,309 $ 1,690 $ 4,935 $ 3,836
Net charge-
offs/
(recoveries) $ 1,029 $ 986 $ 618 $ 3,593 $ 5,614
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
December 31,
-------------------------------
(Dollar amounts in thousands, except per
share data) 2015 2014
-------------------------------------------- --------------- ---------------
(unaudited)
ASSETS
Cash and due from banks $ 88,695 $ 78,102
Federal funds sold 9,815 8,000
Securities available-for-sale 891,082 897,053
Loans, net of allowance of $19,946 in 2015
and $18,839 in 2014 1,743,862 1,762,589
Restricted stock 10,838 16,404
Accrued interest receivable 11,733 11,593
Premises and equipment, net 50,531 51,802
Bank-owned life insurance 82,323 80,730
Goodwill 39,489 39,489
Other intangible assets 3,178 3,901
Other real estate owned 3,466 3,965
Other assets 44,573 48,857
--------------- ---------------
TOTAL ASSETS $ 2,979,585 $ 3,002,485
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing $ 563,302 $ 556,389
Interest-bearing:
Certificates of deposit of $100 or more 46,753 53,733
Other interest-bearing deposits 1,832,314 1,847,075
--------------- ---------------
2,442,369 2,457,197
Short-term borrowings 33,831 48,015
Other borrowings 12,677 12,886
Other liabilities 80,392 90,173
--------------- ---------------
TOTAL LIABILITIES 2,569,269 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-12,740,018 in 2015 and
12,942,175 in 2014 1,817 1,815
Additional paid-in capital 73,396 72,405
Retained earnings 395,633 377,970
Accumulated other comprehensive income
(loss) (9,401) (14,529)
Less: Treasury shares at cost-1,817,797 in
2015 and 1,595,957 in 2014 (51,129) (43,447)
--------------- ---------------
TOTAL SHAREHOLDERS' EQUITY 410,316 394,214
--------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,979,585 $ 3,002,485
=============== ===============
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
Years Ended December 31,
------------------------------------
(Dollar amounts in thousands, except
per share data) 2015 2014 2013
--------------------------------------- ----------- ----------- -----------
(unaudited)
INTEREST AND DIVIDEND INCOME:
Loans, including related fees $ 84,022 $ 87,530 $ 91,242
Securities:
Taxable 15,815 17,015 16,157
Tax-exempt 7,194 7,084 7,046
Other 1,645 1,729 1,776
----------- ----------- -----------
TOTAL INTEREST AND DIVIDEND INCOME 108,676 113,358 116,221
INTEREST EXPENSE:
Deposits 3,934 4,624 5,886
Short-term borrowings 70 99 78
Other borrowings 165 803 2,997
----------- ----------- -----------
TOTAL INTEREST EXPENSE 4,169 5,526 8,961
----------- ----------- -----------
NET INTEREST INCOME 104,507 107,832 107,260
Net provision for loan losses 4,700 5,072 7,860
----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 99,807 102,760 99,400
NON-INTEREST INCOME:
Trust and financial services 5,586 5,860 6,035
Service charges and fees on deposit
accounts 10,145 10,772 10,162
Other service charges and fees 11,798 11,697 11,081
Securities gain, net 17 (3) 423
Insurance commissions 6,945 7,646 7,750
Gain on sale of mortgage loans 1,998 1,849 3,052
Other 2,690 2,964 1,952
----------- ----------- -----------
TOTAL NON-INTEREST INCOME 39,179 40,785 40,455
NON-INTEREST EXPENSES:
Salaries and employee benefits 60,109 55,936 55,097
Occupancy expense 6,978 7,218 6,102
Equipment expense 6,991 7,269 6,348
Federal Deposit Insurance 1,769 1,931 2,052
Other 22,551 23,230 24,955
----------- ----------- -----------
TOTAL NON-INTEREST EXPENSE 98,398 95,584 94,554
----------- ----------- -----------
INCOME BEFORE INCOME TAXES 40,588 47,961 45,301
Provision for income taxes 10,392 14,189 13,767
----------- ----------- -----------
NET INCOME $ 30,196 $ 33,772 $ 31,534
OTHER COMPREHENSIVE INCOME
Change in unrealized gains/losses on
securities, net of reclassifications
and taxes $ (1,225) $ 13,913 $ (17,066)
Change in funded status of post-
retirement benefits, net of taxes $ 6,353 $ (14,473) $ 10,569
----------- ----------- -----------
COMPREHENSIVE INCOME $ 35,324 $ 33,212 $ 25,037
=========== =========== ===========
EARNINGS PER SHARE:
BASIC AND DILUTED $ 2.35 $ 2.55 $ 2.37
=========== =========== ===========
Weighted average number of shares
outstanding (in thousands) 12,836 13,226 13,310
=========== =========== ===========
For more information contact:
Rodger A. McHargue
(812) 238-6334
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
