Attached files
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| 8-K - 8-K - FIRST FINANCIAL CORP /IN/ | a12-25518_18k.htm |
Exhibit 99.1
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News Release |
FIRST FINANCIAL CORPORATION
One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000
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For more information contact: |
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October 30, 2012 |
Rodger A. McHargue at (812) 238-6334 |
First Financial Corporation reports 3rd Quarter 2012 results
TERRE HAUTE, INDIANA — First Financial Corporation (NASDAQ:THFF) today announced results for the nine and three months ended September 30, 2012. Net income of $24.2 and $8.1 million for the nine and three months, respectively, compares to $27.0 and $9.8 million for the same periods of 2011. Return on assets for the nine and three months ended September 30, 2012 was 1.12% and 1.16%, respectively, compared to 1.44% and 1.57% for the nine and three months ended September 30, 2011. Results for the first nine months of 2012 include income and expenses associated with the purchase of Freestar Bank on December 30, 2011 and were not reflected in the results for the first nine months of 2011.
Net interest income for the third quarter of 2012 was $27.4 million, an increase of 10.0% over the $24.9 million reported for the same period of 2011. Net interest income for the nine months ended September 30, 2012 was $82.2 million compared to the $74.8 million reported for the same period of 2011, an increase of $7.4 million. The net interest margin at September 30, 2012 was 4.41%, compared to the 4.52% reported at September 30, 2011.
The provision for loan losses for the three months ended September 30, 2012 was $2.6 million compared to the $1.4 million provision for the third quarter of 2011. For the nine months ended September 30, 2012 and 2011, the provision expense was $7.3 and $3.9 million, respectively.
Non-interest income for the three months ended September 30, 2012 and 2011 was $9.7 and $8.9 million, respectively, an 8.7% increase. Gains from the sale of mortgage loans comprised $0.9 million of the increase. For the nine months ended September 30, 2012, non-interest income increased $3.9 million to $29.0 million from the $25.1 million reported for the same period of 2011.
Non-interest expense for the three months ended September 30, 2012 was $23.0 million compared to $18.6 million in 2011. For the nine months ended September 30, 2012, non-interest expense was $69.5 million compared to $56.9 for the nine months ended September 30, 2011. 2012 non-interest expense contains salary, benefits and one-time expenses related to the acquisition of Freestar Bank. In addition, costs related to the opening of four banking centers by First Financial Bank during the quarter resulted in expenses that did not exist during the same quarter of 2011.
Total loans at September 30, 2012 of $1.86 billion compare to the $1.66 billion reported during the same period a year ago. Deposits increased by $332.7 million to $2.26 billion. These increases were primarily driven by the Freestar Bank acquisition.
Book value per share was $27.86, a 2.77% increase from the $27.11 at September 30, 2011. Shareholders’ equity increased 3.42% to $368.8 million from $356.6 million on September 30, 2011.
First Financial Corporation is the holding company for First Financial Bank N.A. in Indiana and Illinois, The Morris Plan Company of Terre Haute and Forrest Sherer Inc. in Indiana.
Earning Release Data
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
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September 30, |
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December 31, |
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2012 |
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2011 |
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(Unaudited) |
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ASSETS |
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Cash and due from banks |
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$ |
63,638 |
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$ |
134,280 |
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Federal funds sold and short-term investments |
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55,773 |
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11,725 |
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Securities available-for-sale |
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656,506 |
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666,287 |
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Loans: |
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— |
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— |
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Commercial |
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1,078,449 |
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1,099,324 |
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Residential |
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507,446 |
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505,600 |
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Consumer |
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273,196 |
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289,717 |
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1,859,091 |
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1,894,641 |
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Less: |
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Unearned Income |
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(930 |
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(962 |
) | ||
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Allowance for loan losses |
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(21,457 |
) |
(19,241 |
) | ||
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1,836,704 |
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1,874,438 |
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Restricted Stock |
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21,296 |
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22,282 |
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Accrued interest receivable |
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12,785 |
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12,947 |
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Premises and equipment, net |
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44,722 |
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40,105 |
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Bank-owned life insurance |
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76,280 |
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82,646 |
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Goodwill |
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37,612 |
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37,612 |
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Other intangible assets |
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4,216 |
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5,142 |
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Other real estate owned |
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8,670 |
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4,964 |
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FDIC Indemnification asset |
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1,602 |
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2,384 |
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Other assets |
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59,437 |
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59,964 |
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TOTAL ASSETS |
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$ |
2,879,241 |
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$ |
2,954,776 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Deposits: |
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Noninterest-bearing |
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$ |
430,619 |
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$ |
435,236 |
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Interest-bearing: |
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— |
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— |
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Certificates of deposit of $100 or more |
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233,814 |
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242,001 |
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Other interest-bearing deposits |
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1,595,237 |
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1,597,262 |
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2,259,670 |
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2,274,499 |
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Short-term borrowings |
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43,997 |
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100,022 |
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Other borrowings |
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125,863 |
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146,427 |
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Other liabilities |
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80,950 |
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86,867 |
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TOTAL LIABILITIES |
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2,510,480 |
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2,607,815 |
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Shareholders’ equity |
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Common stock, $.125 stated value per share; |
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Authorized shares-40,000,000 Issued shares-14,490,609 in 2012 and 14,450,966 in 2011 Outstanding shares-13,237,523 in 2012 and 13,197,880 in 2011 |
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1,808 |
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1,806 |
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Additional paid-in capital |
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69,692 |
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69,328 |
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Retained earnings |
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336,147 |
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318,130 |
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Accumulated other comprehensive income (loss) |
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(7,077 |
) |
(10,494 |
) | ||
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Treasury shares at cost-1,253,086 in 2012 and 2011 |
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(31,809 |
) |
(31,809 |
) | ||
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TOTAL SHAREHOLDERS’ EQUITY |
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368,761 |
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346,961 |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
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$ |
2,879,241 |
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$ |
2,954,776 |
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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2012 |
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2011 |
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2012 |
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2011 |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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INTEREST INCOME: |
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Loans, including related fees |
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$ |
24,725 |
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$ |
22,943 |
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$ |
75,149 |
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$ |
68,903 |
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Securities: |
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Taxable |
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3,308 |
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4,016 |
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10,339 |
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12,532 |
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Tax-exempt |
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1,827 |
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1,712 |
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5,442 |
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5,075 |
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Other |
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568 |
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479 |
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1,781 |
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1,426 |
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TOTAL INTEREST INCOME |
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30,428 |
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29,150 |
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92,711 |
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87,936 |
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INTEREST EXPENSE: |
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Deposits |
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1,881 |
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2,974 |
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6,714 |
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9,339 |
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Short-term borrowings |
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33 |
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56 |
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116 |
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151 |
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Other borrowings |
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1,108 |
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1,216 |
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3,648 |
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3,628 |
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TOTAL INTEREST EXPENSE |
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3,022 |
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4,246 |
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10,478 |
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13,118 |
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NET INTEREST INCOME |
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27,406 |
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24,904 |
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82,233 |
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74,818 |
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Provision for loan losses |
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2,559 |
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1,360 |
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7,304 |
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3,894 |
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
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24,847 |
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23,544 |
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74,929 |
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70,924 |
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NON-INTEREST INCOME: |
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Trust and financial services |
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1,413 |
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1,002 |
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4,332 |
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3,530 |
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Service charges and fees on deposit accounts |
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2,560 |
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2,305 |
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7,166 |
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6,808 |
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Other service charges and fees |
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2,506 |
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2,142 |
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7,237 |
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6,223 |
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Securities gains/(losses), net |
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17 |
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— |
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677 |
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7 |
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Total impairment losses |
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— |
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(13 |
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(11 |
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(110 |
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Loss recognized in other comprehensive loss |
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Net impairment loss recognized in earnings |
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— |
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(13 |
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(11 |
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(110 |
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Insurance commissions |
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1,736 |
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1,935 |
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5,426 |
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5,328 |
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Gain on sales of mortgage loans |
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1,253 |
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406 |
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2,970 |
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1,144 |
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Other |
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203 |
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1,133 |
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1,159 |
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2,168 |
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TOTAL NON-INTEREST INCOME |
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9,688 |
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8,910 |
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28,956 |
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25,098 |
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NON-INTEREST EXPENSE: |
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Salaries and employee benefits |
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13,695 |
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11,475 |
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42,005 |
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34,430 |
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Occupancy expense |
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1,465 |
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1,171 |
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4,370 |
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3,624 |
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Equipment expense |
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1,335 |
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1,079 |
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4,016 |
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3,308 |
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FDIC Expense |
|
494 |
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161 |
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1,449 |
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1,440 |
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Other |
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5,975 |
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4,667 |
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17,646 |
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14,113 |
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TOTAL NON-INTEREST EXPENSE |
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22,964 |
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18,553 |
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69,486 |
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56,915 |
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INCOME BEFORE INCOME TAXES |
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11,571 |
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13,901 |
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34,399 |
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39,107 |
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Provision for income taxes |
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3,480 |
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4,087 |
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10,160 |
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12,073 |
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NET INCOME |
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8,091 |
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9,814 |
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24,239 |
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27,034 |
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OTHER COMPREHENSIVE INCOME |
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Change in unrealized gains/losses on securities, net of reclassifications |
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3,123 |
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6,322 |
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3,763 |
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21,828 |
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Tax effect |
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(1,249 |
) |
(2,529 |
) |
(1,505 |
) |
(8,731 |
) | ||||
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1,874 |
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3,793 |
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2,258 |
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13,097 |
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Change in funded status of post retirement benefits |
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645 |
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505 |
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1,932 |
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1,513 |
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Tax effect |
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(258 |
) |
(202 |
) |
(773 |
) |
(605 |
) | ||||
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387 |
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303 |
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1,159 |
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908 |
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TOTAL OTHER COMPREHENSIVE INCOME |
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2,261 |
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4,096 |
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3,417 |
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14,005 |
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COMPREHENSIVE INCOME |
|
$ |
10,352 |
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$ |
13,910 |
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$ |
27,656 |
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$ |
41,039 |
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PER SHARE DATA |
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Basic and Diluted |
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0.61 |
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0.75 |
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1.83 |
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2.06 |
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Dividends per Share |
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— |
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— |
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0.47 |
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0.47 |
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Weighted average number of shares outstanding (in thousands) |
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13,238 |
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13,152 |
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13,233 |
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13,152 |
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For the nine months ended |
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September 30, |
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September 30, |
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Key Ratios |
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2012 |
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2011 |
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Return on average assets |
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1.12 |
% |
1.44 |
% | ||
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Return on average common shareholder’s equity |
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9.06 |
% |
10.65 |
% | ||
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Average common shareholder’s equity to average assets |
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12.86 |
% |
13.89 |
% | ||
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End of period tangible common equity to tangible assets |
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11.52 |
% |
10.45 |
% | ||
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Book value per share |
|
$ |
27.86 |
|
$ |
27.11 |
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Tangible book value per share |
|
$ |
24.70 |
|
$ |
23.86 |
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Risk-based capital - Tier 1 |
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15.15 |
% |
17.77 |
% | ||
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Risk-based capital - Total |
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16.12 |
% |
18.92 |
% | ||
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Net interest margin |
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4.41 |
% |
4.52 |
% | ||
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Efficiency Ratio |
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60.04 |
% |
54.74 |
% | ||
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Net charge-offs to average loans and leases |
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0.33 |
% |
0.18 |
% | ||
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Loan and lease loss reserve to loans and leases |
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1.15 |
% |
0.99 |
% | ||
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Nonperforming assets to loans and leases |
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2.93 |
% |
3.10 |
% | ||
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For the nine months ended |
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September 30, |
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September 30, |
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Asset Quality |
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2012 |
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2011 |
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Accruing loans and leases past due 90 days or more |
|
$ |
3,772 |
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$ |
2,992 |
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Nonaccrual loans and leases |
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41,913 |
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43,389 |
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Other real estate owned |
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8,670 |
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4,964 |
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Total nonperforming assets |
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$ |
54,355 |
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$ |
51,345 |
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