Attached files
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| 8-K - 8-K - FIRST FINANCIAL CORP /IN/ | v334439_8k.htm |
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News Release |
FIRST FINANCIAL CORPORATION
One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000
| For more information contact: | |
| February 8, 2013 | Rodger A. McHargue at (812) 238-6334 |
First Financial Corporation reports 2012 results
TERRE HAUTE, INDIANA – First Financial Corporation (NASDAQ:THFF) today announced results for the three months and year ended December 31, 2012. Net income of $32.8 and $8.6 million for the twelve and three months, respectively, compares to $37.2 and $10.2 million for the same periods of 2011. Return on assets for the twelve and three months ended December 31, 2012 was 1.13% and 1.14%, respectively, compared to 1.49% and 1.61 for the twelve and three months ended December 31, 2011. Results for 2012 include income and expenses incurred in 2012 associated with the purchase of Freestar Bank on December 30, 2011.
Net interest income for the last quarter of 2012 was $26.7 million, an increase of 9.45% over the $24.4 million reported for the same period of 2011. Net interest income for the year ended December 31, 2012 was $108.9 million compared to the $99.2 million reported for the same period of 2011, an increase of $9.7 million. The net interest margin at December 31, 2012 was 4.30%, compared to 4.50% reported at December 31, 2011.
The provision for loan losses for the three months ended December 31, 2012 was $1.5 million compared to the $1.9 million provision for the fourth quarter of 2011. For the year ended December 31, 2012 and 2011, the provision expense was $8.8 and $5.8 million, respectively.
Non-interest income for the three months ended December 31, 2012 and 2011 was $10.6 and $8.2 million, respectively, a 28.5% increase. Gains from the sale of mortgage loans comprised $0.8 million of the increase. For the year ended December 31, 2012, non-interest income increased $6.2 million to $39.5 million from the $33.3 million reported for the same period of 2011.
Non-interest expense for the three months ended December 31, 2012 was $23.6 million compared to $18.3 million in 2011. For the year ended December 31, 2012, non-interest expense was $93.1 million compared to $75.2 for the year ended December 31, 2011. 2012 non-interest expense contains the additional salary, benefits and one-time expenses related to the acquisition of Freestar Bank and the opening of four banking centers by First Financial Bank which did not exist during 2011.
Total loans at December 31, 2012 of $1.86 billion compare to the $1.89 billion reported during the same period a year ago. Deposits increased by $1.6 million to $2.27 billion. The allowance for loan losses increased 14.1% to $22.0 million from the $19.2 million at December 31, 2011. Net charge-offs for 2012 were down $0.7 million from 2011.
Book value per share was $27.93 at year end 2012, a 5.9% increase from the $26.38 at December 31, 2011. Shareholders’ equity increased 7.3% to $372.1 million from $347.0 million on December 31, 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.
| CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, | ||||||||
| (Dollar amounts in thousands, except per share data) | 2012 | 2011 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 87,230 | $ | 134,280 | ||||
| Federal funds sold | 20,800 | 11,725 | ||||||
| Securities available-for-sale | 691,000 | 666,287 | ||||||
| Loans, net of allowance of $21,958 in 2012 and $19,241 in 2011 | 1,829,978 | 1,874,438 | ||||||
| Restricted Stock | 21,292 | 22,282 | ||||||
| Accrued interest receivable | 12,024 | 12,947 | ||||||
| Premises and equipment, net | 47,308 | 40,105 | ||||||
| Bank-owned life insurance | 77,295 | 82,646 | ||||||
| Goodwill | 37,612 | 36,897 | ||||||
| Other intangible assets | 3,893 | 5,142 | ||||||
| Other real estate owned | 7,722 | 4,964 | ||||||
| FDIC Indemnification Asset | 2,632 | 2,384 | ||||||
| Other assets | 56,622 | 59,964 | ||||||
| TOTAL ASSETS | $ | 2,895,408 | $ | 2,954,061 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Deposits: | ||||||||
| Non-interest-bearing | $ | 465,954 | $ | 435,236 | ||||
| Interest-bearing: | ||||||||
| Certificates of deposit of $100 or more | 213,610 | 242,001 | ||||||
| Other interest-bearing deposits | 1,596,570 | 1,597,262 | ||||||
| 2,276,134 | 2,274,499 | |||||||
| Short-term borrowings | 40,551 | 100,022 | ||||||
| Other borrowings | 119,705 | 146,427 | ||||||
| Other liabilities | 86,896 | 86,152 | ||||||
| TOTAL LIABILITIES | 2,523,286 | 2,607,100 | ||||||
| Shareholders’ equity | ||||||||
| Common stock, $.125 stated value per share; | ||||||||
| Authorized shares-40,000,000 | ||||||||
| Issued shares-14,490,609 in 2012 and 14,450,966 in 2011. | ||||||||
| Outstanding shares-13,287,348 in 2012 and 13,197,880 in 2011 | 1,808 | 1,806 | ||||||
| Additional paid-in capital | 69,989 | 69,328 | ||||||
| Retained earnings | 338,342 | 318,130 | ||||||
| Accumulated other comprehensive income (loss) | (7,472 | ) | (10,494 | ) | ||||
| Less: Treasury shares at cost-1,203,261 in 2012 and 1,253,086 in 2011 | (30,545 | ) | (31,809 | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 372,122 | 346,961 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,895,408 | $ | 2,954,061 | ||||
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
| Years Ended December 31, | ||||||||
| (Dollar amounts in thousands, except per share data) | 2012 | 2011 | ||||||
| INTEREST AND DIVIDEND INCOME: | ||||||||
| Loans, including related fees | $ | 99,196 | $ | 91,392 | ||||
| Securities: | ||||||||
| Taxable | 13,542 | 16,161 | ||||||
| Tax-exempt | 7,246 | 6,779 | ||||||
| Other | 2,321 | 2,009 | ||||||
| TOTAL INTEREST AND DIVIDEND INCOME | 122,305 | 116,341 | ||||||
| INTEREST EXPENSE: | ||||||||
| Deposits | 8,520 | 12,127 | ||||||
| Short-term borrowings | 140 | 187 | ||||||
| Other borrowings | 4,733 | 4,833 | ||||||
| TOTAL INTEREST EXPENSE | 13,393 | 17,147 | ||||||
| NET INTEREST INCOME | 108,912 | 99,194 | ||||||
| Net Provision for loan losses | 8,773 | 5,755 | ||||||
| NET INTEREST INCOME AFTER | ||||||||
| PROVISION FOR LOAN LOSSES | 100,139 | 93,439 | ||||||
| NON-INTEREST INCOME: | ||||||||
| Trust and financial services | 5,804 | 4,544 | ||||||
| Service charges and fees on deposit accounts | 9,742 | 8,995 | ||||||
| Other service charges and fees | 9,710 | 8,289 | ||||||
| Securities gain, net | 886 | 6 | ||||||
| Other-than-temporary loss | ||||||||
| Total impairment loss | (11 | ) | (110 | ) | ||||
| Loss recognized in other comprehensive income | - | - | ||||||
| Net impairment loss recognized in earnings | (11 | ) | (110 | ) | ||||
| Insurance commissions | 7,422 | 7,347 | ||||||
| Gain on sale of mortgage loans | 4,590 | 1,957 | ||||||
| Other | 1,404 | 2,312 | ||||||
| TOTAL NON-INTEREST INCOME | 39,547 | 33,340 | ||||||
| NON-INTEREST EXPENSES: | ||||||||
| Salaries and employee benefits | 56,211 | 45,362 | ||||||
| Occupancy expense | 5,746 | 4,777 | ||||||
| Equipment expense | 5,489 | 4,352 | ||||||
| Federal Deposit Insurance | 1,949 | 1,804 | ||||||
| Other | 23,661 | 18,892 | ||||||
| TOTAL NON-INTEREST EXPENSE | 93,056 | 75,187 | ||||||
| INCOME BEFORE INCOME TAXES | 46,630 | 51,592 | ||||||
| Provision for income taxes | 13,818 | 14,397 | ||||||
| NET INCOME | $ | 32,812 | $ | 37,195 | ||||
| OTHER COMPREHENSIVE INCOME | ||||||||
| Change in unrealized gains/losses on securities, net of | ||||||||
| reclassifications and taxes | $ | 691 | $ | 8,857 | ||||
| Change in funded status of post retirement benefits, net of taxes | $ | 2,331 | $ | (9,982 | ) | |||
| COMPREHENSIVE INCOME | $ | 35,834 | $ | 36,070 | ||||
| EARNINGS PER SHARE: | ||||||||
| BASIC AND DILUTED | $ | 2.48 | $ | 2.83 | ||||
| Weighted average number of shares outstanding (in thousands) | 13,240 | 13,163 | ||||||
| Key Ratios | For the year ended | |||||||
| December 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Return on average assets | 1.13 | % | 1.49 | % | ||||
| Return on average common shareholder's equity | 9.02 | % | 10.90 | % | ||||
| Average common shareholder's equity to average assets | 12.84 | % | 12.32 | % | ||||
| End of period tangible common equity to tangible assets | 11.58 | % | 10.47 | % | ||||
| Book value per share | $ | 28.01 | $ | 26.38 | ||||
| Tangible book value per share | $ | 24.88 | $ | 23.19 | ||||
| Risk-based capital - Tier 1 | 14.78 | % | 13.96 | % | ||||
| Risk-based capital - Total | 15.67 | % | 14.71 | % | ||||
| Net interest margin | 4.30 | % | 4.50 | % | ||||
| Efficiency Ratio | 60.24 | % | 54.47 | % | ||||
| Net charge-offs to average loans and leases | 0.45 | % | 0.33 | % | ||||
| Loan and lease loss reserve to loans and leases | 1.19 | % | 1.15 | % | ||||
| Nonperforming assets to loans and leases | 2.53 | % | 2.38 | % | ||||
| Asset Quality | For the year ended | |||||||
| December 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Accruing loans and leases past due 90 days or more | $ | 3,362 | $ | 2,047 | ||||
| Nonaccrual loans and leases | 35,794 | 38,102 | ||||||
| Other real estate owned | 7,722 | 4,964 | ||||||
| Total nonperforming assets | $ | 46,878 | $ | 45,113 | ||||