First Financial Corporation reports 3rd Quarter results
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TERRE HAUTE, IN -- (Marketwired) -- 10/25/16 -- First Financial Corporation (NASDAQ: THFF) today announced results for the third quarter of 2016. Net income for the quarter was $8.2 million compared to $8.4 million for the same period of 2015. Diluted net income per common share increased 3.08% to $0.67 from $0.65 for the comparable period of 2015.
The Corporation further reported net income of $30.1 million for the nine months ended September 30, 2016 versus $23.1 million for the comparable period of 2015, an increase of 30.30%. Diluted net income per common share also increased 35.75% to $2.43 for the nine months ended September 30, 2016 versus $1.79 for the comparable period of 2015. This increase included an after-tax gain of $5.75 million on the sale of the Corporation's insurance subsidiary. Return on assets for the nine months ended September 30, 2016 was 1.35% compared to 1.03% for the nine months ended September 30, 2015.
Norman L. Lowery, President and Chief Executive Officer, commented, "We are pleased with our third quarter 2016 results. We had another solid quarter of loan growth and our asset quality remains excellent."
Book value per share was $34.66 at September 30, 2016, a 7.77% increase from the $32.16 at September 30, 2015. Shareholders' equity increased 3.38% to $422.4 million from $408.6 million on September 30, 2015.
On February 3, 2016, the Corporation announced a stock repurchase plan to acquire 5% of the Corporation's outstanding common stock. The Corporation has repurchased a total of 565,618 shares under the plan.
Average total loans for the third quarter of 2016 were $1.80 billion, an increase of $31.8 million or 1.80%, versus $1.77 billion for the comparable period in 2015. Total loans outstanding were $1.82 billion, an increase from $1.77 billion as of September 30, 2015. On a linked quarter basis, average total loans increased $19.6 million, or 1.10%, from $1.78 billion for the quarter ending June 30, 2016.
Average total deposits at September 30, 2016 were $2.41 billion versus $2.45 billion as of September 30, 2015. On a linked quarter basis, average deposits were $2.40 billion compared to $2.42 billion on June 30, 2016.
The company's tangible common equity to tangible asset ratio was 12.93% at September 30, 2016, compared to 12.61% at September 30, 2015.
Net interest income for the third quarter of 2016 was $26.4 million compared to the $26.6 million reported for the same period of 2015. The net interest margin for the nine months ended September 30, 2016 increased to 4.05% compared to the 4.04% reported at September 30, 2015.
The provision for loan losses for the three months ended September 30, 2016 was $1.09 million compared to $1.05 million for the third quarter of 2015. Net charge-offs were $1.5 million for the third quarter of 2016 compared to $986 thousand in the same period of 2015. The Corporation's allowance for loan losses as of September 30, 2016 was $19.1 million compared to $19.9 million as of September 30, 2015. The allowance for loan losses as a percent of total loans was 1.05% as of September 30, 2016 compared to 1.13% as of September 30, 2015.
Nonperforming loans decreased 6.19% to $29.0 million as of September 30, 2016 versus $31.0 million as of September 30, 2015. The ratio of nonperforming loans to total loans and leases was 1.59% as of September 30, 2016 versus 1.75% as of September 30, 2015.
Non-interest income for the three months ended September 30, 2016 was $7.92 million compared to $9.95 million as of September 30, 2015. The decline was primarily related to the sale of the Corporation's insurance subsidiary, which reduced insurance commissions by $1.66 million year-over-year.
Non-interest expense for the three months ended September 30, 2016 decreased $2.1 million to $22.0 million compared to $24.2 million in 2015. On a year-over-year basis for the quarter, salaries and employee benefits decreased $2.1 million driven by lower health insurance and pension expense. The Corporation's efficiency ratio was 55.97% for the quarter ending September 30, 2016 versus 65.02% for the same period in 2015.
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 Nine Months Ended
September September September September
30, June 30, 30, 30, 30,
2016 2016 2015 2016 2015
END OF PERIOD
BALANCES
Assets $3,019,323 $2,958,016 $2,942,833 $3,019,323 $2,942,833
Deposits $2,479,241 $2,394,334 $2,418,589 $2,479,241 $2,418,589
Loans $1,821,525 $1,802,810 $1,766,667 $1,821,525 $1,766,667
Allowance for Loan
Losses $ 19,074 $ 19,504 $ 19,925 $ 19,074 $ 19,925
Total Equity $ 422,374 $ 413,224 $ 408,591 $ 422,374 $ 408,591
Tangible Common
Equity $ 385,766 $ 376,472 $ 365,727 $ 385,766 $ 365,727
AVERAGE BALANCES
Total Assets $2,977,329 $2,947,153 $2,954,983 $2,961,163 $2,977,719
Earning Assets $2,742,151 $2,747,214 $2,733,630 $2,738,097 $2,747,516
Investments $ 936,059 $ 945,948 $ 960,139 $ 946,001 $ 968,997
Loans $1,800,796 $1,781,201 $1,769,009 $1,779,936 $1,766,097
Total Deposits $2,399,596 $2,422,302 $2,418,162 $2,413,522 $2,447,282
Interest-Bearing
Deposits $1,855,077 $1,877,092 $1,884,420 $1,868,413 $1,905,714
Interest-Bearing
Liabilities $ 59,815 $ 44,852 $ 58,957 $ 50,231 $ 49,053
Total Equity $ 433,511 $ 406,382 $ 401,840 $ 418,289 $ 403,550
INCOME STATEMENT DATA
Net Interest Income $ 26,351 $ 26,059 $ 26,576 $ 78,567 $ 78,495
Net Interest Income
Fully Tax
Equivalent $ 27,907 $ 27,602 $ 28,134 $ 83,200 $ 83,184
Provision for Loan
Losses $ 1,091 $ 435 $ 1,050 $ 2,361 $ 3,650
Non-interest Income $ 7,923 $ 8,214 $ 9,951 $ 38,503 $ 29,790
Non-interest
Expense $ 22,006 $ 22,760 $ 24,152 $ 68,113 $ 73,455
Net Income $ 8,162 $ 8,232 $ 8,398 $ 30,069 $ 23,082
PER SHARE DATA
Basic and Diluted
Net Income Per
Common Share $ 0.67 $ 0.68 $ 0.65 $ 2.43 $ 1.79
Cash Dividends
Declared Per
Common Share $ - $ 0.5 $ - $ 0.5 $ 0.49
Book Value Per
Common Share $ 34.66 $ 33.89 $ 32.16 $ 34.66 $ 32.16
Tangible Book Value
Per Common Share $ 31.66 $ 30.88 $ 28.79 $ 31.66 $ 28.79
Basic Weighted
Average Common
Shares Outstanding 12,186 12,236 12,773 12,356 12,874
Key Ratios Three Months Ended Nine Months Ended
September September September September
30, June 30, 30, 30, 30,
2016 2016 2015 2016 2015
Return on average
assets 1.10% 1.12% 1.14% 1.35% 1.03%
Return on average
common shareholder's
equity 7.23% 8.04% 8.36% 9.56% 7.61%
Efficiency ratio 61.42% 63.55% 63.42% 55.97% 65.02%
Average equity to
average assets 14.56% 13.89% 13.60% 14.13% 13.55%
Net interest margin 4.05% 4.04% 4.12% 4.05% 4.04%
Net charge-offs to
average loans and
leases 0.34% 0.19% 0.22% 0.24% 0.19%
Loan and lease loss
reserve to loans and
leases 1.05% 1.08% 1.13% 1.05% 1.13%
Loan and lease loss
reserve to
nonperforming loans
and other real
estate 65.69% 70.76% 64.37% 65.69% 64.37%
Nonperforming loans
to loans 1.61% 1.53% 1.75% 1.61% 1.75%
Tier 1 leverage 13.23% 13.08% 12.92% 13.23% 12.92%
Risk-based capital -
Tier 1 17.46% 17.46% 17.73% 17.46% 17.73%
Asset Quality Three Months Ended Nine Months Ended
September September September September
30, June 30, 30, 30, 30,
2016 2016 2015 2016 2015
Accruing loans and
leases past due 30-
89 days $ 6,983 $ 7,435 $ 6,778 $ 6,983 $ 6,778
Accruing loans and
leases past due 90
days or more $ 1,144 $ 1,044 $ 1,632 $ 1,144 $ 1,632
Nonaccrual loans and
leases $ 16,235 $ 14,526 $ 16,112 $ 16,235 $ 16,112
Nonperforming loans
and other real
estate $ 29,037 $ 27,562 $ 30,954 $ 29,037 $ 30,954
Other real estate
owned $ 2,772 $ 2,837 $ 3,382 $ 2,772 $ 3,382
Total nonperforming
assets $ 40,548 $ 38,998 $ 46,072 $ 40,548 $ 46,072
Total troubled debt
restructurings $ 8,886 $ 9,155 $ 9,828 $ 8,886 $ 9,828
Gross charge-offs $ 2,724 $ 1,842 $ 3,295 $ 6,206 $ 6,597
Recoveries $ 1,202 $ 986 $ 2,309 $ 2,973 $ 4,033
Net charge-
offs/(recoveries) $ 1,522 $ 856 $ 986 $ 3,233 $ 2,564
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
September 30, December 31,
2016 2015
------------- -------------
(unaudited)
----------------------------
ASSETS
Cash and due from banks $ 67,396 $ 88,695
Federal funds sold 44,505 9,815
Securities available-for-sale 866,701 891,082
Loans:
Commercial 1,083,129 1,043,980
Residential 430,346 444,447
Consumer 304,840 272,896
------------- -------------
1,818,315 1,761,323
(Less) plus:
Net deferred loan costs 3,210 2,485
Allowance for loan losses (19,074) (19,946)
------------- -------------
1,802,451 1,743,862
Restricted stock 10,848 10,838
Accrued interest receivable 12,846 11,733
Premises and equipment, net 49,688 50,531
Bank-owned life insurance 83,377 82,323
Goodwill 34,355 39,489
Other intangible assets 2,253 3,178
Other real estate owned 2,772 3,466
Other assets 42,131 44,573
------------- -------------
TOTAL ASSETS $ 3,019,323 $ 2,979,585
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing $ 557,185 $ 563,302
Interest-bearing:
Certificates of deposit exceeding the FDIC
insurance limits 44,778 46,753
Other interest-bearing deposits 1,877,278 1,832,314
------------- -------------
2,479,241 2,442,369
Short-term borrowings 31,370 33,831
FHLB advances 10,132 12,677
Other liabilities 76,206 80,392
------------- -------------
TOTAL LIABILITIES 2,596,949 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-12,185,737 in 2016 and
12,740,018 in 2015 1,819 1,817
Additional paid-in capital 73,907 73,396
Retained earnings 419,585 395,633
Accumulated other comprehensive loss (2,412) (9,401)
Less: Treasury shares at cost-2,393,021 in
2016 and 1,817,797 in 2015 (70,525) (51,129)
------------- -------------
TOTAL SHAREHOLDERS' EQUITY 422,374 410,316
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,019,323 $ 2,979,585
============= =============
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,
2016 2015 2016 2015
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
INTEREST INCOME:
Loans, including related
fees $21,753 $21,478 $64,208 $63,048
Securities:
Taxable 3,506 3,918 11,031 11,970
Tax-exempt 1,826 1,806 5,466 5,375
Other 365 401 1,096 1,265
----------- ----------- ----------- -----------
TOTAL INTEREST INCOME 27,450 27,603 81,801 81,658
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Deposits 1,016 963 3,033 2,980
Short-term borrowings 51 22 100 54
Other borrowings 32 42 101 129
----------- ----------- ----------- -----------
TOTAL INTEREST EXPENSE 1,099 1,027 3,234 3,163
----------- ----------- ----------- -----------
NET INTEREST INCOME 26,351 26,576 78,567 78,495
Provision for loan losses 1,091 1,050 2,361 3,650
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER
PROVISION
FOR LOAN LOSSES 25,260 25,526 76,206 74,845
NON-INTEREST INCOME:
Trust and financial
services 1,270 1,382 3,896 4,127
Service charges and fees on
deposit accounts 2,765 2,688 7,870 7,557
Other service charges and
fees 3,062 3,080 9,211 8,918
Securities gains/(losses),
net 13 9 26 23
Gain on sale of certain
assets and liabilities of
insurance brokerage (199) - 12,822 -
Insurance commissions 35 1,693 2,340 5,202
Gain on sales of mortgage
loans 522 611 1,407 1,512
Other 455 488 931 2,451
----------- ----------- ----------- -----------
TOTAL NON-INTEREST INCOME 7,923 9,951 38,503 29,790
----------- ----------- ----------- -----------
NON-INTEREST EXPENSE:
Salaries and employee
benefits 12,883 14,963 39,620 45,105
Occupancy expense 1,785 1,756 5,238 5,322
Equipment expense 1,878 1,736 5,523 5,210
FDIC Expense 356 468 1,210 1,348
Other 5,104 5,229 16,522 16,470
----------- ----------- ----------- -----------
TOTAL NON-INTEREST EXPENSE 22,006 24,152 68,113 73,455
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 11,177 11,325 46,596 31,180
Provision for income taxes 3,015 2,927 16,527 8,098
----------- ----------- ----------- -----------
NET INCOME 8,162 8,398 30,069 23,082
OTHER COMPREHENSIVE INCOME
Change in unrealized
gains/losses on
securities, net of
reclassifications and
taxes 777 4,471 6,077 1,669
Change in funded status of
post retirement benefits,
net of taxes 304 819 912 4,102
----------- ----------- ----------- -----------
COMPREHENSIVE INCOME $9,243 $13,688 $37,058 $28,853
=========== =========== =========== ===========
PER SHARE DATA
Basic and Diluted Earnings
per Share $0.67 $0.65 $2.43 $1.79
=========== =========== =========== ===========
Weighted average number of
shares outstanding (in
thousands) 12,186 12,773 12,356 12,874
=========== =========== =========== ===========
For more information contact: Rodger A. McHargue (812) 238-6334
Source: First Financial Corp.
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