First Financial Corporation Reports 1st Quarter Results
/EINPresswire.com/ -- TERRE HAUTE, IN --(Marketwired - April 27, 2016) - First Financial Corporation (NASDAQ: THFF) today announced results for the first quarter of 2016. Net income for the three months ending March 31, 2016 increased 76.2% to $13.68 million compared to $7.76 million for the same period of 2015. The increase included an after-tax gain on the sale of the Corporation's insurance subsidiary of $5.84 million. Diluted net income per common share increased 80.0% to $1.08 from $0.60 for the comparable period of 2015.
Return on assets for the three months ended March 31, 2016 was 1.85% compared to 1.04% for the three months ended March 31, 2015.
Total loans outstanding increased $7.1 million, or .40%, from $1.76 billion as of March 31, 2015 to $1.76 billion as of March 31, 2016. On a linked quarter basis, average total loans increased $8.6 million, or .49%, from $1.75 billion for the quarter ending December 31, 2015.
Total deposits decreased $63.4 million or 2.57% from $2.46 billion as of March 31, 2015 to $2.40 billion as of March 31, 2016.
The company's tangible common equity to tangible asset ratio was 12.92% at March 31, 2016, compared to 12.39% at March 31, 2015.
Net interest income for the first quarter of 2016 was $26.2 million, an increase of .62% over the $26.0 million reported for the same period of 2015. The net interest margin for the quarter ended March 31, 2016 increased to 4.06% from the 4.01% reported at March 31, 2015.
Asset quality remains strong with nonperforming loans decreasing 22.67% to $23.6 million as of March 31, 2016 versus $30.5 million as of March 31, 2015. The ratio of nonperforming loans to total loans and leases also decreased to 1.50% as of March 31, 2016 versus 1.97% as of March 31, 2015.
The provision for loan losses for the three months ended March 31, 2016 was $835 thousand compared to the $1.45 million provision for the first quarter of 2015. Net charge-offs were $855 thousand for the first quarter of 2016 compared to $938 thousand in the same period of 2015. The Corporation's allowance for loan losses as of March 31, 2016 was $19.9 million compared to $19.4 million as of March 31, 2015. The allowance for loan losses as a percent of total loans was 1.13% as of March 31, 2016 compared to 1.10% as of March 31, 2015.
Non-interest income for the three months ended March 31, 2016 and 2015 was $21.5 and $10.1 million, respectively, a 113.54% increase. The gain on the sale of the Corporation's insurance subsidiary increased non-interest income $13.0 million. Other income without this gain is down primarily due to the recognition of unrealized loss on other real estate written down to updated appraised values.
Service charges on deposits increased $178 thousand over the same period in 2015 and other service charges and fees increased $162 thousand.
Non-interest expense for the three months ended March 31, 2016 decreased $1.53 million to $22.5 million compared to $24.0 million in 2015. On a linked quarter basis, non-interest expense decreased $2.48 million from $24.9 million for the quarter ended December 31, 2015. On a year-over-year basis, salaries and employee benefits decreased $1.46 million driven by lower health insurance and pension expense. The Corporation's efficiency ratio was 45.68% for the quarter ending March 31, 2016 versus 63.78% for the same period in 2015.
Book value per share was $33.58 at March 31, 2016, a 6.33% increase from the $31.58 at March 31, 2015. Average shareholders' equity increased 3.38% to $415.0 million from $401.4 million on March 31, 2015.
Norman L. Lowery, President and Chief Executive Officer, commented, "We are pleased with our first quarter of 2016 results. We saw improvement in our interest income, interest expense, lower credit costs, most areas of non-interest income, and reduced non-interest expense. It was a solid quarter for First Financial."
First Financial Corporation is the holding company for First Financial Bank N.A. in Indiana and Illinois, and The Morris Plan Company of Terre Haute in Indiana.
Three Months Ended
March 31, December 31, March 31,
2016 2015 2015
END OF PERIOD BALANCES
Assets $ 2,939,240 $ 2,979,585 $ 2,995.836
Deposits 2,400,655 2,442,369 2,463.949
Loans 1,763,659 1,763,808 1,756,604
Allowance for Loan Losses 19,926 19,946 19,351
Total Equity 411,912 410,316 409,027
Tangible Common Equity 375,000 367,649 365,853
AVERAGE BALANCES
Total Assets 2,959,007 2,974,567 2,988,154
Earning Assets 2,724,926 2,735,328 2,748,730
Investments 955,996 950,245 969,315
Loans 1,757,811 1,749,261 1,760,524
Total Deposits 2,418,668 2,443,478 2,461,400
Interest-Bearing Deposits 1,873,070 1,889,350 1,917,509
Interest-Bearing Borrowings 46,026 41,269 44,789
Total Equity 414,974 408,730 401,423
INCOME STATEMENT DATA
Net Interest Income 26,157 26,012 25,995
Net Interest Income Fully Tax
Equivalent 27,692 27,561 27,559
Provision for Loan Losses 835 1,050 1,450
Non-interest Income 21,484 9,389 10,061
Non-interest Expense 22,465 24,943 23,993
Net Income 13,675 7,114 7,761
PER SHARE DATA
Basic and Diluted Net Income Per
Common Share 1.08 0.56 0.60
Cash Dividends Declared Per Common
Share - 0.49 -
Book Value Per Common Share 33.58 32.21 31.58
Tangible Book Value Per Common Share 30.57 28.86 28.27
Basic Weighted Average Common Shares
Outstanding 12,646 12,722 12,948
Key Ratios Three Months Ended
March 31, December 31, March 31,
2016 2015 2015
Return on average assets 1.85% 0.96% 1.04%
Return on average common shareholder's
equity 13.28% 6.96% 7.73%
Efficiency ratio 45.68% 67.51% 63.78%
Average equity to average assets 13.92% 13.74% 13.43%
Net interest margin 4.06% 4.04% 4.01%
Net charge-offs to average loans and leases 0.19% 0.20% 0.21%
Loan and lease loss reserve to loans and
leases 1.13% 1.13% 1.10%
Loan and lease loss reserve to
nonperforming loans 84.38% 78.35% 63.37%
Nonperforming loans to loans 1.50% 1.46% 1.97%
Tier 1 leverage 13.05% 12.92% 12.74%
Risk-based capital - Tier 1 17.81% 17.69% 17.64%
Asset Quality Three Months Ended
March 31, December 31, March 31,
2016 2015 2015
Accruing loans and leases past due 30-89
days $ 7,292 $ 12,294 $ 7,159
Accruing loans and leases past due 90 days
or more $ 858 $ 964 $ 640
Nonaccrual loans and leases $ 13,248 $ 14,634 $ 14,868
Nonperforming loans $ 23,615 $ 25,458 $ 30,536
Other real estate owned $ 2,850 $ 3,466 $ 3,830
Total nonperforming assets $ 39,617 $ 43,799 $ 49,353
Total troubled debt restructurings $ 9,509 $ 9,860 $ 15,027
Gross charge-offs $ 1,640 $ 1,931 $ 1,823
Recoveries $ 785 $ 902 $ 885
Net charge-offs/(recoveries) $ 855 $ 1,029 $ 938
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
March 31, December 31,
2016 2015
----------- --------------
(unaudited)
--------------------------
ASSETS
Cash and due from banks $ 66,125 $ 88,695
Federal funds sold 6,444 9,815
Securities available-for-sale 884,176 891,082
Loans:
Commercial 1,047,599 1,043,980
Residential 436,873 444,447
Consumer 276,471 272,896
---------- -------------
1,760,943 1,761,323
(Less) plus:
Net deferred loan costs 2,716 2,485
Allowance for loan losses (19,926) (19,946)
---------- -------------
1,743,733 1,743,862
Restricted stock 10,838 10,838
Accrued interest receivable 11,907 11,733
Premises and equipment, net 50,394 50,531
Bank-owned life insurance 82,673 82,323
Goodwill 34,355 39,489
Other intangible assets 2,557 3,178
Other real estate owned 2,850 3,466
Other assets 43,188 44,573
---------- -------------
TOTAL ASSETS $2,939,240 $ 2,979,585
========== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing $ 512,961 $ 563,302
Interest-bearing:
Certificates of deposit exceeding the FDIC
insurance limits 46,817 46,753
Other interest-bearing deposits 1,840,877 1,832,314
---------- -------------
2,400,655 2,442,369
Short-term borrowings 31,116 33,831
FHLB advances 12,252 12,677
Other liabilities 83,305 80,392
---------- -------------
TOTAL LIABILITIES 2,527,328 2,569,269
Shareholders' equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-14,578,758 in 2016 and 14,557,815
in 2015
Outstanding shares-12,265,355 in 2016 and
12,740,018 in 2015 1,818 1,817
Additional paid-in capital 73,566 73,396
Retained earnings 409,308 395,633
Accumulated other comprehensive loss (5,059) (9,401)
Less: Treasury shares at cost-2,313,403 in 2016
and 1,817,797 in 2015 (67,721) (51,129)
---------- -------------
TOTAL SHAREHOLDERS' EQUITY 411,912 410,316
---------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,939,240 $ 2,979,585
========== =============
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
Three Months Ended
March 31,
2016 2015
------------ ------------
(unaudited) (unaudited)
------------ ------------
INTEREST INCOME:
Loans, including related fees $ 21,184 $ 20,807
Securities:
Taxable 3,831 4,061
Tax-exempt 1,822 1,779
Other 364 431
------------ ------------
TOTAL INTEREST INCOME 27,201 27,078
------------ ------------
INTEREST EXPENSE:
Deposits 987 1,020
Short-term borrowings 23 13
Other borrowings 34 50
------------ ------------
TOTAL INTEREST EXPENSE 1,044 1,083
------------ ------------
NET INTEREST INCOME 26,157 25,995
Provision for loan losses 835 1,450
------------ ------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 25,322 24,545
NON-INTEREST INCOME:
Trust and financial services 1,334 1,492
Service charges and fees on deposit accounts 2,504 2,326
Other service charges and fees 3,000 2,838
Securities gains/(losses), net 3 4
Insurance commissions 1,390 1,553
Gain on sales of mortgage loans 404 359
Gain on sale of certain assets and liabilities of
insurance brokerage operation 13,021 -
Other (172 1,489
------------ ------------
TOTAL NON-INTEREST INCOME 8,463 10,061
------------ ------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 13,595 15,058
Occupancy expense 1,731 1,864
Equipment expense 1,837 1,772
FDIC Expense 451 430
Other 4,851 4,869
------------ ------------
TOTAL NON-INTEREST EXPENSE 22,465 23,993
------------ ------------
INCOME BEFORE INCOME TAXES 24,341 10,613
Provision for income taxes 10,666 2,852
------------ ------------
NET INCOME 13,675 7,761
OTHER COMPREHENSIVE INCOME
Change in unrealized gains/losses on securities,
net of reclassifications and taxes 4,039 4,762
Change in funded status of post retirement
benefits, net of taxes 304 2,464
------------ ------------
COMPREHENSIVE INCOME $ 18,018 $ 14,987
============ ============
PER SHARE DATA
Basic and Diluted Earnings per Share $ 1.08 $ 0.60
============ ============
Weighted average number of shares outstanding (in
thousands) 12,646 12,948
============ ============
For more information contact:
Rodger A. McHargue
(812) 238-6334
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