FIRST FINANCIAL CORP /IN/ - FORM 8-K - EX-99.1 - EXHIBIT - April 29, 2014

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News Release
 
FIRST FINANCIAL CORPORATION
One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000
 
 
For more information contact:
April 29, 2014
Rodger A. McHargue at (812) 238-6334
 
First Financial Corporation reports 1st Quarter 2014 results
 
TERRE HAUTE, INDIANA – First Financial Corporation (NASDAQ:THFF) today announced results for the three months ended March 31, 2014. Net income of $7.8 million increased 1.8% compared to $7.7 million for the same period of 2013. Return on assets for the first quarter of 2014 was 1.03% compared to 1.05% for the three months ended March 31, 2013.
 
Net interest income for the first quarter of 2014 was $27.1 million, a 3.7% increase, from the $26.2 million reported for the same period of 2013. The net interest margin at March 31, 2014 was 4.10%, compared to 4.09% reported at March 31, 2013.
 
The provision for loan losses for the three months ended March 31, 2014 was $1.96 million compared to the $3.02 million provision for the first quarter of 2013. Net charge-offs were $1.39 million for the first quarter of 2014 compared to a net recovery in 2013 of $1.04 million.
 
Non-interest income for the three months ended March 31, 2014 and 2013 was $10.1 million and $9.9 million, respectively. Gain on sale of loans decreased $587 thousand while the income from service charges on deposits and other service fees increased by virtually the same amount.
 
Non-interest expense for the three months ended March 31, 2014 was $23.7 million compared to $22.1 million in 2013. The expansion of the branch network in the last half of 2013 resulted in increased occupancy and equipment expense as well as a 4% increase in full-time equivalent employees when comparing the first quarters of 2014 and 2013.
 
Total loans at March 31, 2014 stood at $1.78 billion compared to the $1.82 billion reported the same time a year ago. Deposits increased by $157.2 million to $2.5 billion at March 31, 2014 from March 31, 2013. Reduced demand for loans allowed for the reduction of Federal Home Loan Bank borrowings by $76.4 million during this period.
 
Book value per share for the first quarter of 2014 was $29.90, a 5.16% increase from $28.43 at March 31, 2013. Shareholders’ equity increased 5.54% to $399.3 million from $378.4 million on March 31, 2013.
 
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.
 






















CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
 
 
March 31,
2014
 
December 31,
2013
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
83,988

 
$
71,033

Federal funds sold
9,791

 
4,276

Securities available-for-sale
921,165

 
914,560

Loans:
 

 
 

Commercial
1,037,518

 
1,042,138

Residential
481,663

 
482,377

Consumer
265,428

 
268,033

 
1,784,609

 
1,792,548

Less:
 

 
 

Unearned Income
(635
)
 
(1,120
)
Allowance for loan losses
(20,408
)
 
(20,068
)
 
1,763,566

 
1,771,360

Restricted Stock
21,057

 
21,057

Accrued interest receivable
11,451

 
11,554

Premises and equipment, net
50,655

 
51,449

Bank-owned life insurance
79,444

 
79,035

Goodwill
39,489

 
39,489

Other intangible assets
4,656

 
4,935

Other real estate owned
4,806

 
5,291

FDIC Indemnification Asset
754

 
1,055

Other assets
41,720

 
43,624

TOTAL ASSETS
$
3,032,542

 
$
3,018,718

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

Non-interest-bearing
$
535,333

 
$
506,815

Interest-bearing:
 

 
 

Certificates of deposit of $100 or more
171,165

 
179,177

Other interest-bearing deposits
1,800,516

 
1,772,799

 
2,507,014

 
2,458,791

Short-term borrowings
35,710

 
59,592

Other borrowings
38,214

 
58,288

Other liabilities
52,275

 
55,852

TOTAL LIABILITIES
2,633,213

 
2,632,523

 
 
 
 
Shareholders’ equity
 

 
 

Common stock, $.125 stated value per share;
 
 
 

Authorized shares-40,000,000
 

 
 

Issued shares-14,538,132 in 2014 and 14,516,113 in 2013
 

 
 

Outstanding shares-13,355,272 in 2014 and 13,343,029 in 2013
1,812

 
1,811

Additional paid-in capital
71,315

 
71,074

Retained earnings
364,914

 
357,083

Accumulated other comprehensive income (loss)
(8,551
)
 
(13,969
)
Less: Treasury shares at cost-1,182,860 in 2014 and 1,173,084 in 2013
(30,161
)
 
(29,804
)
TOTAL SHAREHOLDERS’ EQUITY
399,329

 
386,195

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
3,032,542

 
$
3,018,718



 







CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
 
 
Three Months Ended 
 March 31,
 
2014
 
2013
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

Loans, including related fees
$
22,218

 
$
23,454

Securities:
 

 
 

Taxable
4,444

 
3,214

Tax-exempt
1,746

 
1,770

Other
416

 
504

TOTAL INTEREST INCOME
28,824

 
28,942

INTEREST EXPENSE:
 

 
 

Deposits
1,290

 
1,742

Short-term borrowings
14

 
20

Other borrowings
378

 
1,007

TOTAL INTEREST EXPENSE
1,682

 
2,769

NET INTEREST INCOME
27,142

 
26,173

Provision for loan losses
1,960

 
3,021

NET INTEREST INCOME AFTER PROVISION
 

 
 

FOR LOAN LOSSES
25,182

 
23,152

NON-INTEREST INCOME:
 

 
 

Trust and financial services
1,489

 
1,526

Service charges and fees on deposit accounts
2,484

 
2,254

Other service charges and fees
2,839

 
2,500

Securities gains/(losses), net
—

 
4

Insurance commissions
1,913

 
1,963

Gain on sales of mortgage loans
376

 
963

Other
1,010

 
667

TOTAL NON-INTEREST INCOME
10,111

 
9,877

NON-INTEREST EXPENSE:
 

 
 

Salaries and employee benefits
14,096

 
13,596

Occupancy expense
1,925

 
1,522

Equipment expense
1,658

 
1,501

FDIC Expense
487

 
557

Other
5,539

 
5,023

TOTAL NON-INTEREST EXPENSE
23,705

 
22,199

INCOME BEFORE INCOME TAXES
11,588

 
10,830

Provision for income taxes
3,757

 
3,137

NET INCOME
7,831

 
7,693

OTHER COMPREHENSIVE INCOME (LOSS)
 

 
 

Change in unrealized gains/losses on securities, net of reclassifications and taxes
5,303

 
(1,667
)
Change in funded status of post retirement benefits, net of taxes
115

 
214

COMPREHENSIVE INCOME (LOSS)
$
13,249

 
$
6,240

PER SHARE DATA
 

 
 

Basic and Diluted Earnings per Share
$
0.59

 
$
0.58

Weighted average number of shares outstanding (in thousands)
13,349

 
13,300








Key Ratios
 
For the Three Months Ended
 
 
March 31,
 
March 31,
 
 
2014
 
2013
Return on average assets
 
1.03
%
 
1.05
 %
Return on average common shareholder's equity
 
7.90
%
 
8.21
 %
Average common shareholder's equity to average assets
 
13.08
%
 
12.79
 %
End of period tangible common equity to tangible assets
 
11.89
%
 
11.53
 %
Book value per share
 
$
29.90

 
$
28.43

Tangible book value per share
 
$
26.60

 
$
25.34

Risk-based capital - Tier 1
 
16.63
%
 
15.82
 %
Risk-based capital - Total
 
17.56
%
 
16.97
 %
Net interest margin
 
4.10
%
 
4.09
 %
Efficiency Ratio
 
62.30
%
 
59.25
 %
Net charge-offs to average loans and leases
 
0.31
%
 
(0.23
)%
Loan and lease loss reserve to loans and leases
 
1.14
%
 
1.39
 %
Nonperforming assets to loans and leases
 
1.44
%
 
2.63
 %
 
Asset Quality
 
For the Three Months Ended
 
 
March 31,
 
March 31,
 
 
2014
 
2013
Accruing loans and leases past due 90 days or more
 
$
1,153

 
$
1,262

Nonaccrual loans and leases
 
19,798

 
38,132

Other real estate owned
 
4,806

 
7,752

Total nonperforming assets
 
$
25,757

 
$
47,146

 


FIRST FINANCIAL CORP /IN/ Reports