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