• First Financial Corporation Reports First Quarter Results

    ソース: Nasdaq GlobeNewswire / 26 4 2022 10:30:00   America/New_York

    TERRE HAUTE, Ind., April 26, 2022 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the first quarter of 2022.

    • Net income was $20.9 million compared to $12.9 million for the same period of 2021;
    • Diluted net income per common share of $1.67 compared to $0.95 for the same period of 2021;
    • Return on average assets was 1.63% compared to 1.12% for the three months ended March 31, 2021; and
    • Pre-tax, pre-provision net income was $19.7 million compared to $16.6 million for the same period in 2021.1

    “We are pleased with our first quarter results,” said Norman L. Lowery, Chairman and Chief Executive Officer. “Profitability measures remain strong with four consecutive quarters of growth in our net interest income and muted credit related costs. Credit quality continues to be very good.”

    Average Total Loans
    Average total loans for the fourth quarter of 2022 were $2.78 billion versus $2.64 billion for the comparable period in 2021.

    Total Loans Outstanding
    Total loans outstanding as of March 31, 2022 were $2.80 billion compared to $2.65 billion as of March 31, 2021, an increase of $158 million or 5.96%.

    Average Total Deposits
    Average total deposits for the quarter ended March 31, 2022, were $4.43 billion versus $3.82 billion as of March 31, 2021, an increase of $611 million or 16.01%.

    Total Deposits
    Total deposits were $4.40 billion as of March 31, 2022, compared to $3.91 billion as of March 31, 2021, an increase of $490 million or 12.54%.

    Book Value Per Share
    Book Value per share was $42.25 at March 31, 2022, compared to $44.20 at March 31, 2021.

    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.

    Shareholder Equity
    Shareholder equity at March 31, 2022, was $525.4 million compared to $598.1 million on March 31, 2021. In the quarter the Corporation repurchased 204,952 shares of its common stock and a total of 980,900 shares in 2021.

    Tangible Common Equity to Tangible Asset Ratio
    The Corporation’s tangible common equity to tangible asset ratio was 8.65% at March 31, 2022, compared to 11.12% at March 31, 2021.

    Net Interest Income
    Net interest income for the first quarter of 2022 was $37.8 million, compared to $34.9 million reported for the same period of 2021, an increase of $2.9 million or 8.30%.

    Net Interest Margin
    The net interest margin for the quarter ended March 31, 2022, was 3.16% compared to the 3.27% reported at March 31, 2021. On a linked quarter basis, the net interest margin increased eight basis points from 3.08% as of December 31, 2021.

    Nonperforming Loans
    Nonperforming loans as of March 31, 2022, were $13.0 million versus $21.0 million as of March 31, 2021. The ratio of nonperforming loans to total loans and leases was 0.46% as of March 31, 2022, versus 0.79% as of March 31, 2021.

    Credit Loss Provision
    The Corporation recorded a negative provision for credit losses for the three months ended March 31, 2022 of $6.6 million, compared to the $452 thousand provision for the first quarter 2021.

    Net Charge-Offs
    In the first quarter of 2022 net charge-offs were $1.2 million compared to $728 thousand in the same period of 2021.

    Allowance for Credit Losses
    The Corporation’s allowance for credit losses as of March 31, 2022, was $40.5 million compared to $46.8 million as of March 31, 2022. The allowance for credit losses as a percent of total loans was 1.44% as of March 31, 2022, compared to 1.77% as of March 31, 2021.

    Non-Interest Income
    Non-interest income for the three months ended March 31, 2022 and 2021 was $13.7 million and $9.3 million, respectively. During the quarter, the Corporation received a $4.0 million legal settlement.

    Non-Interest Expense
    Non-interest expense for the three months ended March 31, 2022, was $31.3 million compared to $27.6 million in 2021. The year-over-year change is, in part, impacted by the acquisition of Hancock Bancorp in the third quarter of 2021.

    Efficiency Ratio
    The Corporation’s efficiency ratio was 59.54% for the quarter ending March 31, 2022, versus 61.08% for the same period in 2021.

    Income Taxes
    Income tax expense for the three months ended March 31, 2022, was $5.8 million versus $3.2 million for the same period in 2021. The effective tax rate for 2022 was 21.79% compared to 20.10% for 2021.

    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 78 banking centers in Illinois, Indiana, Kentucky and Tennessee. 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,
      2022 2021 2021
    END OF PERIOD BALANCES   
    Assets$5,081,794 $5,175,099 $4,684,192 
    Deposits$4,395,190 $4,409,569 $3,905,348 
    Loans, including net deferred loan costs$2,804,650 $2,815,895 $2,646,937 
    Allowance for Credit Losses$40,516 $48,305 $43,800 
    Total Equity$525,444 $582,576 $598,112 
    Tangible Common Equity (a)$431,629 $488,417 $510,981 
        
    AVERAGE BALANCES   
    Total Assets$5,149,642 $5,086,702 $4,600,750 
    Earning Assets$4,927,680 $4,875,039 $4,404,109 
    Investments$1,468,471 $1,410,351 $1,133,439 
    Loans$2,777,168 $2,633,559 $2,640,291 
    Total Deposits$4,427,806 $4,312,115 $3,816,705 
    Interest-Bearing Deposits$3,525,766 $3,823,428 $3,059,290 
    Interest-Bearing Liabilities$106,005 $110,490 $110,448 
    Total Equity$565,123 $589,197 $600,669 
        
    INCOME STATEMENT DATA   
    Net Interest Income$37,811 $36,832 $34,913 
    Net Interest Income Fully Tax Equivalent (b)$38,908 $37,953 $35,959 
    Provision for Credit Losses$(6,550)$5,710 $452 
    Non-interest Income$13,738 $10,767 $9,294 
    Non-interest Expense$31,344 $33,312 $27,639 
    Net Income$20,924 $7,398 $12,877 
        
    PER SHARE DATA   
    Basic and Diluted Net Income Per Common Share$1.67 $0.58 $0.95 
    Cash Dividends Declared Per Common Share$— $0.63 $— 
    Book Value Per Common Share$42.25 $46.13 $44.20 
    Tangible Book Value Per Common Share (c)$34.71 $38.66 $37.76 
    Basic Weighted Average Common Shares Outstanding 12,538  12,804  13,533 
    (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 RatiosThree Months Ended
     March 31,December 31,March 31,
     202220212021
    Return on average assets1.63 %0.58 %1.12 %
    Return on average common shareholder's equity14.81 %5.02 %8.58 %
    Efficiency ratio59.54 %68.37 %61.08 %
    Average equity to average assets10.97 %11.58 %13.06 %
    Net interest margin (a)3.16 %3.08 %3.27 %
    Net charge-offs to average loans and leases0.18 %0.27 %0.11 %
    Credit loss reserve to loans and leases1.44 %1.72 %1.65 %
    Credit loss reserve to nonperforming loans312.60 %321.78 %208.47 %
    Nonperforming loans to loans and leases0.46 %0.53 %0.79 %
    Tier 1 leverage9.94 %9.83 %11.34 %
    Risk-based capital - Tier 114.46 %14.37 %16.17 %
    (a) Net interest margin is calculated on a tax equivalent basis.
     


    Asset QualityThree Months Ended
     March 31,December 31,March 31,
      2022 2021 2021
    Accruing loans and leases past due 30-89 days$13,698 $17,096 $8,373 
    Accruing loans and leases past due 90 days or more$707 $515 $2,001 
    Nonaccrual loans and leases$7,712 $9,590 $14,545 
    Total troubled debt restructuring$4,542 $4,799 $4,464 
    Other real estate owned$236 $108 $942 
    Nonperforming loans and other real estate owned$13,197 $15,012 $21,952 
    Total nonperforming assets$16,728 $18,371 $25,280 
    Gross charge-offs$3,254 $3,113 $2,338 
    Recoveries$2,015 $1,312 $1,610 
    Net charge-offs/(recoveries)$1,239 $1,801 $728 
              


    Non-GAAP ReconciliationsThree Months Ended March 31,
      2022  2021
    ($ in thousands, except EPS)   
    Income before Income Taxes$26,755  $16,116 
    Provision for credit losses (6,550)  452 
    Provision for unfunded commitments (500)  — 
    Pre-tax, Pre-provision Income$19,705  $16,568 
            


    CONSOLIDATED BALANCE SHEETS
    (Dollar amounts in thousands, except per share data)
            
     March 31, December 31,
     2022 2021
     (unaudited)
    ASSETS       
    Cash and due from banks$598,175  $682,807 
    Federal funds sold 736   308 
    Securities available-for-sale 1,359,483   1,364,734 
    Loans:   
    Commercial 1,701,507   1,674,066 
    Residential 635,264   664,509 
    Consumer 464,035   474,026 
      2,800,806   2,812,601 
    (Less) plus:   
    Net deferred loan costs 3,844   3,294 
    Allowance for credit losses (40,516)  (48,305)
      2,764,134   2,767,590 
    Restricted stock 15,547   16,200 
    Accrued interest receivable 15,633   16,946 
    Premises and equipment, net 69,978   69,522 
    Bank-owned life insurance 117,354   116,997 
    Goodwill 86,135   86,135 
    Other intangible assets 7,680   8,024 
    Other real estate owned 236   108 
    Other assets 46,703   45,728 
    TOTAL ASSETS$5,081,794  $5,175,099 
        
    LIABILITIES AND SHAREHOLDERS’ EQUITY   
    Deposits:   
    Non-interest-bearing$893,375  $914,933 
    Interest-bearing:   
    Certificates of deposit exceeding the FDIC insurance limits 62,899   74,015 
    Other interest-bearing deposits 3,438,916   3,420,621 
      4,395,190   4,409,569 
    Short-term borrowings 96,672   93,374 
    FHLB advances 15,924   15,937 
    Other liabilities 48,564   73,643 
    TOTAL LIABILITIES 4,556,350   4,592,523 
        
    Shareholders’ equity   
    Common stock, $.125 stated value per share;   
    Authorized shares-40,000,000   
    Issued shares-16,114,992 in 2022 and 16,096,313 in 2021   
    Outstanding shares-12,435,309 in 2022 and 12,629,893 in 2021 2,010   2,009 
    Additional paid-in capital 142,185   141,979 
    Retained earnings 580,063   559,139 
    Accumulated other comprehensive income/(loss) (71,025)  (2,426)
    Less: Treasury shares at cost-3,679,683 in 2022 and 3,466,420 in 2021 (127,789)  (118,125)
    TOTAL SHAREHOLDERS’ EQUITY 525,444   582,576 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$5,081,794  $5,175,099 
        


    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    (Dollar amounts in thousands, except per share data)
        
     Three Months Ended March 31,
      2022  2021
     (unaudited)
    INTEREST INCOME:   
    Loans, including related fees$32,357  $31,857 
    Securities:   
    Taxable 4,583   3,079 
    Tax-exempt 2,348   2,074 
    Other 365   346 
    TOTAL INTEREST INCOME 39,653   37,356 
    INTEREST EXPENSE:   
    Deposits 1,676   2,286 
    Short-term borrowings 82   98 
    Other borrowings 84   59 
    TOTAL INTEREST EXPENSE 1,842   2,443 
    NET INTEREST INCOME 37,811   34,913 
    Provision for credit losses (6,550)  452 
    NET INTEREST INCOME AFTER PROVISION   
    FOR LOAN LOSSES 44,361   34,461 
    NON-INTEREST INCOME:   
    Trust and financial services 1,372   1,305 
    Service charges and fees on deposit accounts 2,850   2,243 
    Other service charges and fees 4,399   4,242 
    Securities gains (losses), net 5   (152)
    Gain on sales of mortgage loans 662   1,393 
    Other 4,450   263 
    TOTAL NON-INTEREST INCOME 13,738   9,294 
    NON-INTEREST EXPENSE:   
    Salaries and employee benefits 17,342   15,677 
    Occupancy expense 2,522   2,149 
    Equipment expense 2,907   2,578 
    FDIC Expense 428   298 
    Other 8,145   6,937 
    TOTAL NON-INTEREST EXPENSE 31,344   27,639 
    INCOME BEFORE INCOME TAXES 26,755   16,116 
    Provision for income taxes 5,831   3,239 
    NET INCOME 20,924   12,877 
    OTHER COMPREHENSIVE INCOME   
    Change in unrealized gains/(losses) on securities, net of reclassifications and taxes (68,914)  (11,068)
    Change in funded status of post retirement benefits, net of taxes 315   472 
    COMPREHENSIVE INCOME$(47,675) $2,281 
    PER SHARE DATA   
    Basic and Diluted Earnings per Share$1.67  $0.95 
    Weighted average number of shares outstanding (in thousands) 12,538   13,533 
        


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