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CST: 19/09/2019 03:25:59   

First Financial Corporation reports 1st Quarter results

148 Days ago

TERRE HAUTE, Ind., April 23, 2019 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the first quarter of 2019. Net income for the three months ending March 31, 2019 was $9.68 million compared to $8.95 million for the same period of 2018. Diluted net income per common share was $0.79 compared to $0.73 for the same period of 2018. Return on assets for the three months ended March 31, 2019 was 1.29% compared to 1.20% for the three months ended March 31, 2018.

Average total loans for the first quarter of 2019 were $1.97 billion versus $1.91 billion for the comparable period in 2018, an increase of $64.2 million or 3.37%. Total loans outstanding increased $76.6 million, or 4.02%, from $1.91 billion as of March 31, 2018 to $1.98 billion as of March 31, 2019. On a linked quarter basis, average total loans increased $31.7 million, or 1.63%, from $1.94 billion for the quarter ending December 31, 2018.

Average total deposits for the quarter ended March 31, 2019 were $2.43 billion versus $2.45 billion as of March 31, 2018. Total deposits were $2.42 billion as of March 31, 2019 compared to $2.46 billion as of March 31, 2018.

Book value per share was $37.66 at March 31, 2019 compared to $33.86 at March 31, 2018. Shareholders equity at March 31, 2019 was $462.8 million compared to $414.9 million on March 31, 2018. The company’s tangible common equity to tangible asset ratio was 14.29% at March 31, 2019, compared to 12.98% at March 31, 2018.

Net interest income for the first quarter of 2019 was $29.4 million, an increase of 7.11% over the $27.5 million reported for the same period of 2018. The net interest margin for the quarter ended March 31, 2019 increased to 4.31% from the 4.06% reported at March 31, 2018.

Nonperforming loans as of March 31, 2019 were $16.1 million versus $20.7 million as of March 31, 2018. The ratio of nonperforming loans to total loans and leases was 0.81% as of March 31, 2019 versus 1.09% as of March 31, 2018.

The provision for loan losses for the three months ended March 31, 2019 was $1.47 million, equal to the $1.47 million provision for the first quarter of 2018. Net charge-offs were $946 thousand for the first quarter of 2019 compared to $1.1 million in the same period of 2018. The Corporation’s allowance for loan losses as of March 31, 2019 was $21.0 million compared to $20.2 million as of March 31, 2018. The allowance for loan losses as a percent of total loans was 1.06% as of March 31, 2019, the same as March 31, 2018.

Non-interest income for the three months ended March 31, 2019 and 2018 was $7.6 and $8.1 million, respectively.
Non-interest expense for the three months ended March 31, 2019 was $23.7 million, which included $416 thousand of merger related expenses, compared to $23.2 million in 2018. The Corporation’s efficiency ratio was 62.29% for the quarter ending March 31, 2019 versus 63.49% for the same period in 2018.

Income tax expense for the three months ended March 31, 2019 was $2.22 million versus $1.94 million for the same period in 2018. The effective tax rate for 2019 was 18.63% compared to 17.80% for 2018.
               
Norman L. Lowery, President and Chief Executive Officer, commented “We are pleased with our first quarter 2019 results. We continue to have good growth in loans and our net interest income. We are looking forward to closing our acquisition of HopFed Bancorp and excited about the opportunities presented with our expansion into new markets.”

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,
END OF PERIOD BALANCES     2019     2018     2018
Assets   $ 3,025,565   $ 3,008,718   $ 2,956,654
Deposits   $ 2,419,556   $ 2,436,727   $ 2,457,189
Loans, including net deferred loan costs   $ 1,984,053   $ 1,953,988   $ 1,907,445
Allowance for Loan Losses   $ 20,960   $ 20,436   $ 20,241
Total Equity   $ 462,796   $ 442,697   $ 414,901
Tangible Common Equity (a)   $ 427,358   $ 407,145   $ 379,019
         
AVERAGE BALANCES        
Total Assets   $ 3,004,056   $ 2,976,724   $ 2,979,601
Earning Assets   $ 2,824,524   $ 2,795,260   $ 2,800,498
Investments   $ 850,749   $ 849,818   $ 876,764
Loans   $ 1,972,333   $ 1,940,651   $ 1,908,118
Total Deposits   $ 2,428,164   $ 2,448,301   $ 2,449,888
Interest-Bearing Deposits   $ 1,999,272   $ 2,017,901   $ 2,028,581
Interest-Bearing Liabilities   $ 71,923   $ 49,362   $ 54,475
Total Equity   $ 450,666   $ 435,134   $ 414,340
         
INCOME STATEMENT DATA        
Net Interest Income   $ 29,426   $ 29,595   $ 27,473
Net Interest Income Fully Tax Equivalent (b)   $ 30,401   $ 30,591   $ 28,453
Provision for Loan Losses   $ 1,470   $ 1,470   $ 1,473
Non-interest Income   $ 7,636   $ 8,233   $ 8,103
Non-interest Expense   $ 23,693   $ 23,098   $ 23,210
Net Income   $ 9,682   $ 11,056   $ 8,954
         
PER SHARE DATA        
Basic and Diluted Net Income Per Common Share   $ 0.79   $ 0.90   $ 0.73
Cash Dividends Declared Per Common Share   $   $ 0.51   $
Book Value Per Common Share   $ 37.66   $ 36.06   $ 33.86
Tangible Book Value Per Common Share (c)   $ 34.77   $ 32.58   $ 30.93
Basic Weighted Average Common Shares Outstanding   12,282   12,265   12,248
             
(a)  Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholder's equity.
(b)  Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest income fully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of tax exempt income by dividing tax exempt income by the net of tax rate of 75%.
(c)  Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividing average tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assets from average shareholder's equity.
 
 


Key Ratios   Three Months Ended
    March 31, December 31, March 31,
    2019 2018 2018
Return on average assets   1.29 % 1.49 % 1.20 %
Return on average common shareholder's equity   8.59 % 9.93 % 8.64 %
Efficiency ratio   62.29 % 59.49 % 63.49 %
Average equity to average assets   15.00 % 14.96 % 13.91 %
Net interest margin (a)   4.31 % 4.35 % 4.06 %
Net charge-offs to average loans and leases   0.19 % 0.28 % 0.24 %
Loan and lease loss reserve to loans and leases   1.06 % 1.05 % 1.06 %
Loan and lease loss reserve to nonperforming loans   130.28 % 123.27 % 97.66 %
Nonperforming loans to loans and leases   0.81 % 0.85 % 1.09 %
Tier 1 leverage   14.83 % 14.59 % 13.71 %
Risk-based capital - Tier 1   18.65 % 18.48 % 17.57 %
(a) Net interest margin is calculated on a tax equivalent basis.
 
 


Asset Quality   Three Months Ended
      March 31,     December 31,     March 31,  
      2019     2018     2018  
Accruing loans and leases past due 30-89 days   $ 11,402   $ 11,388   $ 9,758  
Accruing loans and leases past due 90 days or more   $ 507   $ 798   $ 602  
Nonaccrual loans and leases   $ 10,808   $ 10,974   $ 13,206  
Total troubled debt restructuring   $ 4,774   $ 4,806   $ 6,919  
Other real estate owned   $ 857   $ 603   $ 1,923  
Nonperforming loans and other real estate owned   $ 16,946   $ 17,181   $ 22,650  
Total nonperforming assets   $ 20,240   $ 20,439   $ 38,179  
Gross charge-offs   $ 2,109   $ 2,139   $ 2,074  
Recoveries   $ 1,163   $ 804   $ 933  
Net charge-offs/(recoveries)   $ 946   $ 1,335   $ 1,141  
                     
                     

CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data) 

  March 31,
 2019
  December 31,
 2018
       
               
  (unaudited)
               
               
               
               
ASSETS              
Cash and due from banks $ 54,627     $ 74,388  
Federal funds sold 2,000      
Securities available-for-sale 786,211     784,916  
Loans:      
Commercial 1,180,347     1,166,352  
Residential 452,384     443,670  
Consumer 348,193     341,041  
  1,980,924     1,951,063  
(Less) plus:      
Net deferred loan costs 3,129     2,925  
Allowance for loan losses (20,960 )   (20,436 )
  1,963,093     1,933,552  
Restricted stock 10,412     10,390  
Accrued interest receivable 14,379     13,970  
Premises and equipment, net 45,977     46,554  
Bank-owned life insurance 86,471     86,186  
Goodwill 34,355     34,355  
Other intangible assets 1,083     1,197  
Other real estate owned 857     603  
Other assets 26,100     22,607  
TOTAL ASSETS $ 3,025,565     $ 3,008,718  
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Deposits:      
Non-interest-bearing $ 440,738     $ 431,923  
Interest-bearing:      
Certificates of deposit exceeding the FDIC insurance limits 50,973     42,284  
Other interest-bearing deposits 1,927,845     1,962,520  
  2,419,556     2,436,727  
Short-term borrowings 56,648     69,656  
FHLB advances 25,000      
Other liabilities 61,565     59,634  
TOTAL LIABILITIES 2,562,769     2,566,017  
       
Shareholders’ equity      
Common stock, $.125 stated value per share;      
Authorized shares-40,000,000      
Issued shares-14,632,323 in 2019 and 14,612,540 in 2018      
Outstanding shares-12,290,212 in 2019 and 12,278,295 in 2018 1,825     1,824  
Additional paid-in capital 76,974     76,774  
Retained earnings 466,398     456,716  
Accumulated other comprehensive loss (12,927 )   (23,454 )
Less: Treasury shares at cost-2,342,111 in 2019 and 2,334,245 in 2018 (69,474 )   (69,159 )
TOTAL SHAREHOLDERS’ EQUITY 462,796     442,701  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 3,025,565     $ 3,008,718  
               
               

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)

  Three Months Ended
March 31,
  2019   2018
       
       
  (unaudited)
INTEREST INCOME:              
Loans, including related fees $ 26,754     $ 23,623  
Securities:      
Taxable 3,681     3,593  
Tax-exempt 1,867     1,840  
Other 314     321  
TOTAL INTEREST INCOME 32,616     29,377  
INTEREST EXPENSE:      
Deposits 2,817     1,764  
Short-term borrowings 323     99  
Other borrowings 50     41  
TOTAL INTEREST EXPENSE 3,190     1,904  
NET INTEREST INCOME 29,426     27,473  
Provision for loan losses 1,470     1,473  
NET INTEREST INCOME AFTER PROVISION      
FOR LOAN LOSSES 27,956     26,000  
NON-INTEREST INCOME:      
Trust and financial services 1,204     1,415  
Service charges and fees on deposit accounts 2,624     2,885  
Other service charges and fees 3,114     3,144  
Securities gains, net (4 )    
Insurance commissions 23     32  
Gain on sales of mortgage loans 420     340  
Other 255     287  
TOTAL NON-INTEREST INCOME 7,636     8,103  
NON-INTEREST EXPENSE:      
Salaries and employee benefits 12,755     12,965  
Occupancy expense 1,815     1,781  
Equipment expense 1,817     1,693  
FDIC Expense 140     227  
Other 7,166     6,545  
TOTAL NON-INTEREST EXPENSE 23,693     23,211  
INCOME BEFORE INCOME TAXES 11,899     10,892  
Provision for income taxes 2,217     1,939  
NET INCOME 9,682     8,953  
OTHER COMPREHENSIVE INCOME      
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes 10,224     (7,699 )
Change in funded status of post retirement benefits, net of taxes 303     281  
COMPREHENSIVE INCOME $ 20,209     $ 1,535  
PER SHARE DATA      
Basic and Diluted Earnings per Share $ 0.79     $ 0.73  
Weighted average number of shares outstanding (in thousands) 12,282     12,248  
           

For more information contact:
Rodger A. McHargue at (812) 238-6334

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