• First Financial Corporation Reports First Quarter Results

    ソース: Nasdaq GlobeNewswire / 22 4 2025 10:00:00   America/New_York

    TERRE HAUTE, Ind., April 22, 2025 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the first quarter of 2025.

    • Net income was $18.4 million compared to $10.9 million reported for the same period of 2024;
    • Diluted net income per common share of $1.55 compared to $0.93 for the same period of 2024;
    • Return on average assets was 1.34% compared to 0.91% for the three months ended March 31, 2024;
    • Credit loss provision was $2.0 million compared to provision of $1.8 million for the first quarter 2024; and
    • Pre-tax, pre-provision net income was $25.7 million compared to $14.9 million for the same period in 2024.1

    ________________________
    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 2025 were $3.84 billion versus $3.18 billion for the comparable period in 2024, an increase of $662 million or 20.80%. On a linked quarter basis, average loans increased $51 million or 1.35% from $3.79 billion as of December 31, 2024. Increases in average loans year-over-year were a combination of the acquisition of SimplyBank on July 1, 2024, and organic growth.

    Total Loans Outstanding

    Total loans outstanding as of March 31, 2025, were $3.85 billion compared to $3.19 billion as of March 31, 2024, an increase of $662 million or 20.74%. On a linked quarter basis, total loans increased $16.9 million or 0.44% from $3.84 billion as of December 31, 2024. The year-over-year increase was impacted by the $467 million in loans acquired in the SimplyBank acquisition in July 2024. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

    Norman D. Lowery, President and Chief Executive Officer, commented “We have had six consecutive quarters of loan growth and have had another record quarter of net interest income. Our net interest margin has also continued to expand. We believe we are well positioned with our strong balance sheet, stable credit quality, and strong capital levels for continued growth.”

    Average Total Deposits

    Average total deposits for the quarter ended March 31, 2025, were $4.65 billion versus $4.05 billion as of March 31, 2024, an increase of $605 million, or 14.95%. Increases in average deposits year-over-year were mostly a result of the acquisition of SimplyBank.

    Total Deposits

    Total deposits were $4.64 billion as of March 31, 2025, compared to $4.11 billion as of March 31, 2024. $622 million in deposits were acquired in the SimplyBank acquisition in July 2024. Non-interest bearing deposits were $856 million, and time deposits were $726 million as of March 31, 2025, compared to $738 million and $581 million, respectively for the same period of 2024.

    Shareholders’ Equity

    Shareholders’ equity at March 31, 2025, was $571.9 million compared to $520.8 million on March 31, 2024. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.51 per share quarterly dividend in January and declared a $0.51 quarterly dividend, which was paid on April 15, 2025.

    Book Value Per Share

    Book Value per share was $48.26 as of March 31, 2025, compared to $44.08 as of March 31, 2024, an increase of $4.18 per share, or 9.49%. Tangible Book Value per share was $38.13 as of March 31, 2025, compared to $36.26 as of March 31, 2024, an increase of $1.87 per share or 5.16%.

    Tangible Common Equity to Tangible Asset Ratio

    The Corporation’s tangible common equity to tangible asset ratio was 8.32% at March 31, 2025, compared to 9.00% at March 31, 2024.

    Net Interest Income

    Net interest income for the first quarter of 2025 was a record $52.0 million, compared to $38.9 million reported for the same period of 2024, an increase of $13.1 million, or 33.5%. Interest income increased $13.6 million and interest expense increased $574 thousand year over year.

    Net Interest Margin

    The net interest margin for the quarter ended March 31, 2025, was 4.11% compared to the 3.53% reported at March 31, 2024.

    Nonperforming Loans

    Nonperforming loans as of March 31, 2025, were $10.2 million versus $24.3 million as of March 31, 2024. The ratio of nonperforming loans to total loans and leases was 0.26% as of March 31, 2025, versus 0.76% as of March 31, 2024. On a linked quarter basis, nonperforming loans were $13.3 million, and the ratio of nonperforming loans to total loans and leases was 0.35% as of December 31, 2024.

    Credit Loss Provision

    The provision for credit losses for the three months ended March 31, 2025, was $2.0 million, compared to $1.8 million for the same period 2024.

    Net Charge-Offs

    In the first quarter of 2025 net charge-offs were $1.8 million compared to $1.5 million in the same period of 2024.

    Allowance for Credit Losses

    The Corporation’s allowance for credit losses as of March 31, 2025, was $46.8 million compared to $40.0 million as of March 31, 2024. The allowance for credit losses as a percent of total loans was 1.22% as of March 31, 2025, compared to 1.25% as of March 31, 2024. On a linked quarter basis, the allowance for credit losses as a percent of total loans was unchanged from December 31, 2024.

    Non-Interest Income

    Non-interest income for the three months ended March 31, 2025 and 2024 was $10.5 million and $9.4 million, respectively.

    Non-Interest Expense

    Non-interest expense for the three months ended March 31, 2025, was $36.8 million compared to $33.4 million in 2023.

    Efficiency Ratio

    The Corporation’s efficiency ratio was 57.54% for the quarter ending March 31, 2025, versus 67.21% for the same period in 2024.

    Income Taxes

    Income tax expense for the three months ended March 31, 2025, was $5.4 million versus $2.2 million for the same period in 2024. The effective tax rate for 2025 was 22.59% compared to 16.79% for 2024.

    About First Financial Corporation

    First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 83 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. 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,  
         2025    2024    2024    
    END OF PERIOD BALANCES          
    Assets $5,549,094 $5,560,348 $4,852,615 
    Deposits $4,640,003 $4,718,914 $4,105,103 
    Loans, including net deferred loan costs $3,854,020 $3,837,141 $3,191,983 
    Allowance for Credit Losses $46,835 $46,732 $40,045 
    Total Equity $571,945 $549,041 $520,766 
    Tangible Common Equity (a) $451,874 $427,470 $428,430 
               
    AVERAGE BALANCES          
    Total Assets $5,508,767 $5,516,036 $4,804,364 
    Earning Assets $5,194,478 $5,196,352 $4,566,461 
    Investments $1,266,300 $1,311,415 $1,308,322 
    Loans $3,841,752 $3,790,515 $3,180,147 
    Total Deposits $4,650,883 $4,757,438 $4,045,838 
    Interest-Bearing Deposits $3,837,679 $3,925,740 $3,326,090 
    Interest-Bearing Liabilities $261,174 $134,553 $221,425 
    Total Equity $564,742 $556,330 $522,720 
               
    INCOME STATEMENT DATA          
    Net Interest Income $51,975 $49,602 $38,920 
    Net Interest Income Fully Tax Equivalent (b) $53,373 $50,985 $40,297 
    Provision for Credit Losses $1,950 $2,000 $1,800 
    Non-interest Income $10,511 $12,213 $9,431 
    Non-interest Expense $36,759 $39,801 $33,422 
    Net Income $18,406 $16,241 $10,924 
               
    PER SHARE DATA          
    Basic and Diluted Net Income Per Common Share $1.55 $1.37 $0.93 
    Cash Dividends Declared Per Common Share $0.51 $0.51 $0.45 
    Book Value Per Common Share $48.26 $46.36 $44.08 
    Tangible Book Value Per Common Share (c) $38.13 $36.77 $36.26 
    Basic Weighted Average Common Shares Outstanding  11,842  11,824  11,803 

    ________________________
    (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,     
      2025  2024  2024       
    Return on average assets 1.34% 1.18% 0.91%
    Return on average common shareholder's equity 13.04% 11.68% 8.36%
    Efficiency ratio 57.54% 62.98% 67.21%
    Average equity to average assets 10.25% 10.09% 10.88%
    Net interest margin (a) 4.11% 3.94% 3.53%
    Net charge-offs to average loans and leases 0.19% 0.15% 0.19%
    Credit loss reserve to loans and leases 1.22% 1.22% 1.25%
    Credit loss reserve to nonperforming loans 460.57% 351.37% 165.12%
    Nonperforming loans to loans and leases 0.26% 0.35% 0.76%
    Tier 1 leverage 10.63% 10.38% 12.02%
    Risk-based capital - Tier 1 12.70% 12.43% 14.69%

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

               
    Asset Quality Three Months Ended  
         March 31,     December 31,    March 31,     
      2025 2024 2024 
    Accruing loans and leases past due 30-89 days $17,007 $22,486 $17,937 
    Accruing loans and leases past due 90 days or more $1,109 $1,821 $1,395 
    Nonaccrual loans and leases $9,060 $11,479 $22,857 
    Other real estate owned $560 $523 $167 
    Nonperforming loans and other real estate owned $10,729 $13,823 $24,419 
    Total nonperforming assets $13,631 $16,719 $27,307 
    Gross charge-offs $3,241 $3,070 $3,192 
    Recoveries $1,394 $1,633 $1,670 
    Net charge-offs/(recoveries) $1,847 $1,437 $1,522 


           
    Non-GAAP Reconciliations Three Months Ended March 31, 
         2025    2024
    ($in thousands, except EPS)      
    Income before Income Taxes $23,777 $13,129
    Provision for credit losses  1,950  1,800
    Provision for unfunded commitments  —  —
    Pre-tax, Pre-provision Income $25,727 $14,929


     
    CONSOLIDATED BALANCE SHEETS
    (Dollar amounts in thousands, except per share data)
     
         March 31,     December 31, 
      2025 2024
      (unaudited)
    ASSETS      
    Cash and due from banks $86,211  $93,526 
    Federal funds sold  427   820 
    Securities available-for-sale  1,182,495   1,195,990 
    Loans:      
    Commercial  2,208,426   2,196,351 
    Residential  966,521   967,386 
    Consumer  673,751   668,058 
       3,848,698   3,831,795 
    (Less) plus:      
    Net deferred loan costs  5,322   5,346 
    Allowance for credit losses  (46,835)  (46,732)
       3,807,185   3,790,409 
    Restricted stock  17,528   17,555 
    Accrued interest receivable  25,556   26,934 
    Premises and equipment, net  80,317   81,508 
    Bank-owned life insurance  129,410   128,766 
    Goodwill  100,026   100,026 
    Other intangible assets  20,045   21,545 
    Other real estate owned  560   523 
    Other assets  99,334   102,746 
    TOTAL ASSETS $5,549,094  $5,560,348 
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY      
    Deposits:      
    Non-interest-bearing $856,063  $859,014 
    Interest-bearing:      
    Certificates of deposit exceeding the FDIC insurance limits  145,609   144,982 
    Other interest-bearing deposits  3,638,331   3,714,918 
       4,640,003   4,718,914 
    Short-term borrowings  137,609   187,057 
    FHLB advances  124,898   28,120 
    Other liabilities  74,639   77,216 
    TOTAL LIABILITIES  4,977,149   5,011,307 
           
    Shareholders’ equity      
    Common stock, $.125 stated value per share;      
    Authorized shares-40,000,000      
    Issued shares-16,190,157 in 2025 and 16,165,023 in 2024      
    Outstanding shares-11,850,645 in 2025 and 11,842,539 in 2024  2,019   2,018 
    Additional paid-in capital  146,159   145,927 
    Retained earnings  699,729   687,366 
    Accumulated other comprehensive income/(loss)  (121,182)  (132,285)
    Less: Treasury shares at cost-4,339,512 in 2025 and 4,322,484 in 2024  (154,780)  (153,985)
    TOTAL SHAREHOLDERS’ EQUITY  571,945   549,041 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $5,549,094  $5,560,348 


     
    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    (Dollar amounts in thousands, except per share data)
     
      Three Months Ended
      March 31, 
         2025    2024
           
    INTEREST INCOME:      
    Loans, including related fees $63,612 $50,052 
    Securities:      
    Taxable  6,002  5,931 
    Tax-exempt  2,604  2,603 
    Other  814  817 
    TOTAL INTEREST INCOME  73,032  59,403 
    INTEREST EXPENSE:      
    Deposits  18,199  17,731 
    Short-term borrowings  1,693  976 
    Other borrowings  1,165  1,776 
    TOTAL INTEREST EXPENSE  21,057  20,483 
    NET INTEREST INCOME  51,975  38,920 
    Provision for credit losses  1,950  1,800 
    NET INTEREST INCOME AFTER PROVISION      
    FOR LOAN LOSSES  50,025  37,120 
    NON-INTEREST INCOME:      
    Trust and financial services  1,393  1,333 
    Service charges and fees on deposit accounts  7,585  6,708 
    Other service charges and fees  316  223 
    Interchange income  214  179 
    Loan servicing fees  165  269 
    Gain on sales of mortgage loans  225  176 
    Other  613  543 
    TOTAL NON-INTEREST INCOME  10,511  9,431 
    NON-INTEREST EXPENSE:      
    Salaries and employee benefits  19,248  17,330 
    Occupancy expense  2,676  2,359 
    Equipment expense  4,505  4,144 
    FDIC Expense  750  662 
    Other  9,580  8,927 
    TOTAL NON-INTEREST EXPENSE  36,759  33,422 
    INCOME BEFORE INCOME TAXES  23,777  13,129 
    Provision for income taxes  5,371  2,205 
    NET INCOME  18,406  10,924 
    OTHER COMPREHENSIVE INCOME (LOSS)      
    Change in unrealized gains/(losses) on securities, net of reclassifications and taxes  11,100  (11,096)
    Change in funded status of post retirement benefits, net of taxes  3  73 
    COMPREHENSIVE INCOME (LOSS) $29,509 $(99)
    PER SHARE DATA      
    Basic and Diluted Earnings per Share $1.55 $0.93 
    Weighted average number of shares outstanding (in thousands)  11,842  11,803 

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