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. McHargueChief
Financial OfficerP: 812-238-6334E: rmchargue@first-online.com
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| |
Three Months Ended |
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| |
March 31, |
|
December 31, |
|
March 31, |
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| |
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 |
|
|
|
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|
|
|
|
|
|
|
|
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 |
|
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|
|
|
|
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|
|
|
(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 |
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|
March 31, |
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|
|
December 31, |
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|
|
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
Quality |
Three 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
Reconciliations |
Three 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 |
|
Grafico Azioni First Financial (NASDAQ:THFF)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni First Financial (NASDAQ:THFF)
Storico
Da Gen 2024 a Gen 2025
