• First Financial Corporation Reports First Quarter Results

    来源: Nasdaq GlobeNewswire / 30 4月 2024 10:00:00   America/New_York

    TERRE HAUTE, Ind., April 30, 2024 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the first quarter of 2024.

    • Net income was $10.9 million compared to the $16.0 million reported for the same period of 2023;
    • Diluted net income per common share of $0.93 compared to $1.33 for the same period of 2023;
    • Return on average assets was 0.91% compared to 1.32% for the three months ended March 31, 2023;
    • Credit loss provision was $1.8 million compared to provision of $1.8 million for the first quarter 2023; and
    • Pre-tax, pre-provision net income was $14.9 million compared to $21.4 million for the same period in 2023.1

    1 Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release.

    Average Total Loans

    Average total loans for the first quarter of 2024 were $3.18 billion versus $3.07 billion for the comparable period in 2023, an increase of $111 million or 3.63%. On a linked quarter basis, average loans increased $47 million or 1.50% from $3.13 billion as of December 31, 2023.

    Total Loans Outstanding

    Total loans outstanding as of March 31, 2024, were $3.19 billion compared to $3.08 billion as of March 31, 2023, an increase of $112 million or 3.63%, primarily driven by increases in Commercial Real Estate and Consumer Auto loans. On a linked quarter basis, total loans increased $24.2 million or 0.76% from $3.17 billion as of December 31, 2023.

    “We are pleased with our first quarter results, as we experienced another quarter of solid loan growth,” said Norman D. Lowery, President and Chief Executive Officer. “Our balance sheet is strong, our asset quality is stable, and our capital levels remain strong.”

    Average Total Deposits

    Average total deposits for the quarter ended March 31, 2024, were $4.05 billion versus $4.25 billion as of March 31, 2023.

    Total Deposits

    Total deposits were $4.11 billion as of March 31, 2024, compared to $4.17 billion as of March 31, 2023. On a linked quarter basis, total deposits increased $15.0 million, or 0.37% from $4.09 billion. Non-interest bearing deposits were $738 million and time deposits were $581 million as of March 31, 2024.

    Shareholders’ Equity

    Shareholders’ equity at March 31, 2024, was $520.8 million compared to $505.5 million on March 31, 2023. During the last twelve months, the Corporation has repurchased 311,360 shares of its common stock. There were no shares repurchased during the quarter. 518,860 shares remain available for repurchase under the current repurchase authorization. During the quarter, the Corporation paid a $0.45 per share quarterly dividend and declared a $0.45 quarterly dividend payable April 15, 2024.

    Book Value Per Share

    Book Value per share was $44.08 as of March 31, 2024, compared to $41.89 as of March 31, 2023, an increase of $2.19 per share or 5.22%. Tangible Book Value per share was $36.26 as of March 31, 2024, compared to $34.16 as of March 31, 2023, an increase of $2.10 per share or 6.15%.

    Tangible Common Equity to Tangible Asset Ratio

    The Corporation’s tangible common equity to tangible asset ratio was 9.00% at March 31, 2024, compared to 8.63% at March 31, 2023.

    Net Interest Income

    Net interest income for the first quarter of 2024 was $38.9 million, compared to $44.3 million reported for the same period of 2023. Interest income increased $4.7 million and interest expense increased $10.1 million year over year.

    Net Interest Margin

    The net interest margin for the quarter ended March 31, 2024, was 3.53% compared to the 3.96% reported at March 31, 2023.

    Nonperforming Loans

    Nonperforming loans as of March 31, 2024, were $24.3 million versus $12.1 million as of March 31, 2023. The ratio of nonperforming loans to total loans and leases was 0.76% as of March 31, 2024, versus 0.39% as of March 31, 2023. The increase was driven primarily by the addition of one credit placed on non-accrual in fourth quarter 2023.

    Credit Loss Provision

    The provision for credit losses for the three months ended March 31, 2024, was $1.8 million, unchanged from the first quarter 2023.

    Net Charge-Offs

    In the first quarter of 2024 net charge-offs were $1.5 million compared to $2.0 million in the same period of 2023.

    Allowance for Credit Losses

    The Corporation’s allowance for credit losses as of March 31, 2024, was $40.0 million compared to $39.6 million as of March 31, 2023. The allowance for credit losses as a percent of total loans was 1.25% as of March 31, 2024, compared to 1.29% as of March 31, 2023. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased 1 basis point from 1.26% as of December 31, 2023.

    Non-Interest Income

    Non-interest income for the three months ended March 31, 2024 was $9.4 million unchanged from the first quarter 2023.

    Non-Interest Expense

    Non-interest expense for the three months ended March 31, 2024, was $33.4 million compared to $32.3 million in 2023, an increase of 3.4% reflective of our history of strong expense control.

    Efficiency Ratio

    The Corporation’s efficiency ratio was 67.21% for the quarter ending March 31, 2024, versus 58.73% for the same period in 2023.

    Income Taxes

    Income tax expense for the three months ended March 31, 2024, was $2.2 million versus $3.6 million for the same period in 2023. The effective tax rate for 2024 was 16.79% compared to 18.42% for 2023.

    About First Financial Corporation

    First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A. First Financial Bank N.A., the fifth oldest national bank in the United States, operates 70 banking centers in Illinois, Indiana, Kentucky and Tennessee. Additional information is available at www.first-online.bank.

    Investor Contact:
    Rodger A. McHargue
    Chief Financial Officer
    P: 812-238-6334
    E: rmchargue@first-online.com

                
     Three Months Ended 
     March 31, December 31, March 31, 
     2024 2023 2023 
    END OF PERIOD BALANCES           
    Assets$4,852,615  $4,851,146  $4,866,821 
    Deposits$4,105,103  $4,090,068  $4,165,398 
    Loans, including net deferred loan costs$3,191,983  $3,167,821  $3,080,044 
    Allowance for Credit Losses$40,045  $39,767  $39,620 
    Total Equity$520,766  $527,976  $505,499 
    Tangible Common Equity(a)$428,430  $435,405  $412,118 
                
    AVERAGE BALANCES           
    Total Assets$4,804,364  $4,725,297  $4,851,484 
    Earning Assets$4,566,461  $4,485,766  $4,613,126 
    Investments$1,308,322  $1,279,821  $1,407,944 
    Loans$3,180,147  $3,133,267  $3,068,716 
    Total Deposits$4,045,838  $4,050,968  $4,252,161 
    Interest-Bearing Deposits$3,326,090  $3,291,931  $3,407,590 
    Interest-Bearing Liabilities$221,425  $206,778  $96,160 
    Total Equity$522,720  $463,004  $487,834 
                
    INCOME STATEMENT DATA           
    Net Interest Income$38,920  $39,590  $44,335 
    Net Interest Income Fully Tax Equivalent(b)$40,297  $40,942  $45,654 
    Provision for Credit Losses$1,800  $2,495  $1,800 
    Non-interest Income$9,431  $11,247  $9,375 
    Non-interest Expense$33,422  $34,244  $32,321 
    Net Income$10,924  $12,420  $15,980 
                
    PER SHARE DATA           
    Basic and Diluted Net Income Per Common Share$0.93  $1.06  $1.33 
    Cash Dividends Declared Per Common Share$0.45  $0.45  $— 
    Book Value Per Common Share$44.08  $44.76  $41.89 
    Tangible Book Value Per Common Share(c)$36.26  $31.47  $34.16 
    Basic Weighted Average Common Shares Outstanding 11,803   11,772   12,058 
                

    (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 RatiosThree Months Ended 
      March 31,   December 31,   March 31, 
      2024   2023   2023 
    Return on average assets 0.91%  1.05%  1.32%
    Return on average common shareholder's equity 8.36%  10.73%  13.10%
    Efficiency ratio 67.21%  65.62%  58.73%
    Average equity to average assets 10.88%  9.80%  10.06%
    Net interest margin(a) 3.53%  3.63%  3.96%
    Net charge-offs to average loans and leases 0.19%  0.22%  0.26%
    Credit loss reserve to loans and leases 1.25%  1.26%  1.29%
    Credit loss reserve to nonperforming loans 165.12%  161.94%  328.06%
    Nonperforming loans to loans and leases 0.76%  0.78%  0.39%
    Tier 1 leverage 12.02%  12.14%  11.30%
    Risk-based capital - Tier 1 14.69%  14.76%  14.27%
                

    (a) Net interest margin is calculated on a tax equivalent basis.


    Asset QualityThree Months Ended
     March 31, December 31, March 31,
     2024 2023 2023
    Accruing loans and leases past due 30-89 days$17,937  $20,168  $18,934 
    Accruing loans and leases past due 90 days or more$1,395  $960  $1,157 
    Nonaccrual loans and leases$22,857  $23,596  $10,920 
    Other real estate owned$167  $107  $336 
    Nonperforming loans and other real estate owned$24,419  $24,663  $12,413 
    Total nonperforming assets$27,307  $27,665  $15,327 
    Gross charge-offs$3,192  $3,976  $4,376 
    Recoveries$1,670  $2,213  $2,417 
    Net charge-offs/(recoveries)$1,522  $1,763  $1,959 


    Non-GAAP ReconciliationsThree Months Ended March 31,
     2024 2023
    ($in thousands, except EPS)       
    Income before Income Taxes$13,129  $19,589 
    Provision for credit losses 1,800   1,800 
    Provision for unfunded commitments —   — 
    Pre-tax, Pre-provision Income$14,929  $21,389 



    CONSOLIDATED BALANCE SHEETS
    (Dollar amounts in thousands, except per share data)
          
     March 31, December 31,
      2024   2023 
     (unaudited)
    ASSETS     
    Cash and due from banks$69,231  $76,759 
    Federal funds sold —   282 
    Securities available-for-sale 1,218,287   1,259,137 
    Loans:     
    Commercial 1,816,854   1,817,526 
    Residential 710,496   695,788 
    Consumer 657,299   646,758 
      3,184,649   3,160,072 
    (Less) plus:     
    Net deferred loan costs 7,334   7,749 
    Allowance for credit losses (40,045)  (39,767)
      3,151,938   3,128,054 
    Restricted stock 15,371   15,364 
    Accrued interest receivable 23,851   24,877 
    Premises and equipment, net 66,830   67,286 
    Bank-owned life insurance 114,683   114,122 
    Goodwill 86,985   86,985 
    Other intangible assets 5,351   5,586 
    Other real estate owned 167   107 
    Other assets 99,921   72,587 
    TOTAL ASSETS$4,852,615  $4,851,146 
          
    LIABILITIES AND SHAREHOLDERS’ EQUITY     
    Deposits:     
    Non-interest-bearing$738,478  $750,335 
    Interest-bearing:     
    Certificates of deposit exceeding the FDIC insurance limits 109,228   92,921 
    Other interest-bearing deposits 3,257,397   3,246,812 
      4,105,103   4,090,068 
    Short-term borrowings 88,873   67,221 
    FHLB advances 58,576   108,577 
    Other liabilities 79,297   57,304 
    TOTAL LIABILITIES 4,331,849   4,323,170 
          
    Shareholders’ equity     
    Common stock, $.125 stated value per share;     
    Authorized shares-40,000,000     
    Issued shares-16,165,023 in 2024 and 16,137,220 in 2023     
    Outstanding shares-11,814,093 in 2024 and 11,795,024 in 2023 2,015   2,014 
    Additional paid-in capital 144,391   144,152 
    Retained earnings 667,675   663,726 
    Accumulated other comprehensive income/(loss) (138,110)  (127,087)
    Less: Treasury shares at cost-4,350,930 in 2024 and 4,342,196 in 2023 (155,205)  (154,829)
    TOTAL SHAREHOLDERS’ EQUITY 520,766   527,976 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$4,852,615  $4,851,146 



    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    (Dollar amounts in thousands, except per share data)
           
     Three Months Ended 
     March 31, 
      2024   2023 
           
    INTEREST INCOME:      
    Loans, including related fees$50,052  $44,595 
    Securities:      
    Taxable 5,931   6,236 
    Tax-exempt 2,603   2,598 
    Other 817   1,271 
    TOTAL INTEREST INCOME 59,403   54,700 
    INTEREST EXPENSE:      
    Deposits 17,731   9,527 
    Short-term borrowings 976   808 
    Other borrowings 1,776   30 
    TOTAL INTEREST EXPENSE 20,483   10,365 
    NET INTEREST INCOME 38,920   44,335 
    Provision for credit losses 1,800   1,800 
    NET INTEREST INCOME AFTER PROVISION      
    FOR LOAN LOSSES 37,120   42,535 
    NON-INTEREST INCOME:      
    Trust and financial services 1,333   1,317 
    Service charges and fees on deposit accounts 6,708   6,818 
    Other service charges and fees 223   204 
    Securities gains (losses), net —   — 
    Interchange income 179   47 
    Loan servicing fees 269   285 
    Gain on sales of mortgage loans 176   180 
    Other 543   524 
    TOTAL NON-INTEREST INCOME 9,431   9,375 
    NON-INTEREST EXPENSE:      
    Salaries and employee benefits 17,330   17,158 
    Occupancy expense 2,359   2,599 
    Equipment expense 4,144   3,299 
    FDIC Expense 662   787 
    Other 8,927   8,478 
    TOTAL NON-INTEREST EXPENSE 33,422   32,321 
    INCOME BEFORE INCOME TAXES 13,129   19,589 
    Provision for income taxes 2,205   3,609 
    NET INCOME 10,924   15,980 
    OTHER COMPREHENSIVE INCOME (LOSS)      
    Change in unrealized gains/(losses) on securities, net of reclassifications and taxes (11,096)  14,238 
    Change in funded status of post retirement benefits, net of taxes 73   147 
    COMPREHENSIVE INCOME (LOSS)$(99) $30,365 
    PER SHARE DATA      
    Basic and Diluted Earnings per Share$0.93  $1.33 
    Weighted average number of shares outstanding (in thousands) 11,803   12,058 


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