TERRE HAUTE, Ind., April 27, 2021 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the three months ending March 31, 2021:

For the quarter:

  • Net income was $12.9 million compared to $12.2 million for the same period of 2020;
  • Diluted net income per common share of $0.95 compared to $0.89 for the same period of 2020; and
  • Return on average assets was 1.12% compared to 1.21% for the three months ended March 31, 2020.

“Despite the continued headwinds of the global pandemic and the varied restrictions of the four states in which we do business, we were able to deliver solid performance in the first quarter,” said Norman L. Lowery, Chairman and Chief Executive Officer. “During the first quarter we reopened our branch office lobbies and we were able to assist many of our clients to participate in the second round of the Paycheck Protection Program.”

Average Total Loans
Average total loans for the first quarter of 2021 were $2.64 billion versus $2.64 billion for the comparable period in 2020.

Total Loans Outstanding
Total loans outstanding increased $24.3 million, from $2.62 billion as of March 31, 2020 to $2.65 billion as of March 31, 2021.

Average Total Deposits
Average total deposits for the quarter ended March 31, 2021, were $3.82 billion versus $3.27 billion as of March 31, 2020, an increase of $546 million or 16.70%.

Total Deposits
Total deposits were $3.91 billion as of March 31, 2021, compared to $3.29 billion as of March 31, 2020, an increase of $614 million or 18.66%. On a linked quarter basis, total deposits increased $149.4 million from $3.76 billion for the quarter ending December 31, 2020.

Book Value Per Share
Book Value per share was $44.20 at March 31, 2021, compared to $42.42 at March 31, 2020, a 4.21% increase.

Shareholder Equity
Shareholder equity at March 31, 2021, was $598.1 million compared to $581.8 million on March 31, 2020. During the quarter the Corporation repurchased 26,300 shares of its common stock.

Tangible Common Equity to Tangible Asset Ratio
The Corporation’s tangible common equity to tangible asset ratio was 11.12% at March 31, 2021, compared to 12.41% at March 31, 2020.

Net Interest Income
Net interest income for the first quarter of 2021 was $34.9 million, compared to $36.4 million reported for the same period of 2020. The decrease was primarily driven by the 150 basis point interest rate reduction by the Federal Reserve in response to the COVID-19 pandemic.

Net Interest Margin
The net interest margin for the quarter ended March 31, 2021, was 3.27% compared to the 4.13% reported at March 31, 2020.

Nonperforming Loans
Nonperforming loans as of March 31, 2021, were $21.0 million versus $17.6 million as of March 31, 2020. The ratio of nonperforming loans to total loans and leases was 0.79% as of March 31, 2021, versus 0.67% as of March 31, 2020.

Credit Loss Provision
In the first three quarters of 2020 the provision was calculated using the incurred loss basis. Beginning in the fourth quarter 2020, the provision was calculated using the current expected credit loss accounting standard. The provision for credit losses for the three months ended March 31 2021, was $452 thousand compared to the $2.69 million provision for the first quarter of 2020.

Net Charge-Offs
Net charge-offs were $728 thousand for the first quarter of 2021 compared to $1.57 million in the same period of 2020.

Allowance for Credit Losses
In March 2020 due to the uncertainty surrounding the global pandemic and as provided by the Coronavirus Aid Relief and Economic Security Act the Corporation elected to delay the implementation of the Current Expected Credit Loss accounting standard. On December 31, 2020 the Corporation adopted ASU 2016-13 (topic 326), “Measurement of Credit Losses on Financial Instruments” commonly referenced as the Current Expected Credit Loss (“CECL”) model. CECL was retrospectively adopted on January 1, 2020.

The Corporation’s allowance for credit losses as of March 31, 2021, was $46.8 million compared to $21.1 million as of March 31, 2020. The increase is primarily related to the adoption of CECL. The allowance for credit losses as a percent of total loans was 1.77% as of March 31, 2021, compared to 0.80% as of March 31, 2020. The allowance as of March 31, 2021 was calculated using CECL. The allowance as of March 31, 2020 was calculated using the incurred loss method.

Non-Interest Income
Non-interest income for the three months ended March 31, 2021 and 2020 was $9.3 and $9.1 million, respectively.

Non-Interest Expense
Non-interest expense for the three months ended March 31, 2021, was $27.6 million compared to $27.6 million in 2020.

Efficiency Ratio
The Corporation’s efficiency ratio was 61.08% for the quarter ending March 31, 2021, versus 59.25% for the same period in 2020.

Income Taxes
Income tax expense for the three months ended March 31, 2021, was $3.2 million versus $3.0 million for the same period in 2020. The effective tax rate for the first quarter of 2021 was 20.10% compared to 19.87% for same period of 2020.

“First Financial continues to meet the financial needs of our customers,” Lowery stated. “I am very proud of our associates' and of their unwavering commitment to serve our customers in these challenging times.”

About First Financial Corporation
First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A. and The Morris Plan Company of Terre Haute, Inc. First Financial Bank N.A. is the fifth oldest national bank in the United States, operating 80 banking centers in Illinois, Indiana, Kentucky and Tennessee. The Morris Plan Company of Terre Haute, Inc. is a state industrial chartered financial institution operating one office in Terre Haute, Indiana. 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,
 
  2021
 2020
 2020
 
END OF PERIOD BALANCES          
Assets $4,681,216 $4,557,544 $4,062,414 
Deposits $3,905,348 $3,755,945 $3,291,231 
Loans, including net deferred loan costs $2,646,937 $2,610,294 $2,622,637 
Allowance for Credit Losses $46,776 $47,052 $21,063 
Total Equity $598,112 $596,992 $581,771 
Tangible Common Equity (a) $510,981 $509,428 $492,943 
     
AVERAGE BALANCES    
Total Assets $4,600,750 $4,532,078 $4,022,789 
Earning Assets $4,404,109 $3,736,217 $3,625,679 
Investments $1,133,439 $1,058,925 $988,523 
Loans $2,640,291 $2,676,041 $2,637,036 
Total Deposits $3,816,705 $3,741,155 $3,270,627 
Interest-Bearing Deposits $3,059,290 $3,005,337 $2,739,394 
Interest-Bearing Liabilities $110,448 $98,922 $106,843 
Total Equity $600,669 $610,879 $569,696 
     
INCOME STATEMENT DATA    
Net Interest Income $34,913 $37,570 $36,350 
Net Interest Income Fully Tax Equivalent (b) $35,959 $38,606 $37,409 
Provision for Credit Losses $452 $448 $2,690 
Non-interest Income $9,294 $12,866 $9,095 
Non-interest Expense $27,639 $31,191 $27,554 
Net Income $12,877 $15,739 $12,181 
     
PER SHARE DATA    
Basic and Diluted Net Income Per Common Share $0.95 $1.15 $0.89 
Cash Dividends Declared Per Common Share $— $0.53 $— 
Book Value Per Common Share $44.20 $44.03 $42.42 
Tangible Book Value Per Common Share (c) $37.76 $37.64 $35.94 
Basic Weighted Average Common Shares Outstanding 13,533 13,695  13,740 

(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,
  202120202020
Return on average assets 1.12%1.39%1.21%
Return on average common shareholder's equity 8.58%10.31%8.55%
Efficiency ratio 61.08%60.60%59.25%
Average equity to average assets 13.06%13.48%14.16%
Net interest margin (a) 3.27%4.11%4.13%
Net charge-offs to average loans and leases 0.11%0.05%0.24%
Credit loss reserve to loans and leases 1.77%1.80%0.80%
Credit loss reserve to nonperforming loans 222.64%214.88%119.70%
Nonperforming loans to loans and leases 0.79%0.84%0.67%
Tier 1 leverage 11.34%11.24%12.38%
Risk-based capital - Tier 1 16.17%16.11%16.19%

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

   
Asset Quality Three Months Ended
  March 31,December 31,March 31,
  202120202020
Accruing loans and leases past due 30-89 days $8,373 $17,309 $27,037 
Accruing loans and leases past due 90 days or more $2,001 $2,324 $1,430 
Nonaccrual loans and leases $14,545 $15,367 $12,011 
Total troubled debt restructuring $4,464 $4,206 $4,156 
Other real estate owned $942 $1,012 $3,894 
Nonperforming loans and other real estate owned $21,952 $22,909 $21,491 
Total nonperforming assets $25,280 $26,045 $24,724 
Gross charge-offs $2,338 $1,954 $2,904 
Recoveries $1,610 $1,538 $1,334 
Net charge-offs/(recoveries) $728 $416 $1,570 


 
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
 
 March 31,
2021		 December 31,
2020
  
 (unaudited)
  
ASSETS   
Cash and due from banks$666,846  $657,470 
Federal funds sold585  301 
Securities available-for-sale1,097,093  1,020,744 
Loans:   
Commercial1,571,142  1,521,711 
Residential592,053  604,652 
Consumer477,633  479,750 
 2,640,828  2,606,113 
(Less) plus:   
Net deferred loan costs6,109  4,181 
Allowance for credit losses(46,776) (47,052)
 2,600,161  2,563,242 
Restricted stock14,825  14,812 
Accrued interest receivable15,465  16,957 
Premises and equipment, net62,584  62,063 
Bank-owned life insurance96,184  95,849 
Goodwill78,592  78,592 
Other intangible assets8,539  8,972 
Other real estate owned942  1,012 
Other assets39,400  37,530 
TOTAL ASSETS$4,681,216  $4,557,544 
    
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Deposits:   
Non-interest-bearing$805,645  $732,694 
Interest-bearing:   
Certificates of deposit exceeding the FDIC insurance limits118,162  107,764 
Other interest-bearing deposits2,981,541  2,915,487 
 3,905,348  3,755,945 
Short-term borrowings98,775  116,061 
FHLB advances5,874  5,859 
Other liabilities73,107  82,687 
TOTAL LIABILITIES4,083,104  3,960,552 
    
Shareholders’ equity   
Common stock, $.125 stated value per share;   
Authorized shares-40,000,000   
Issued shares-16,075,154 in 2021 and 16,075,154 in 2020   
Outstanding shares-13,530,570 in 2021 and 13,558,511 in 20202,008  2,007 
Additional paid-in capital141,024  140,820 
Retained earnings533,980  521,103 
Accumulated other comprehensive income/(loss)(832) 9,764 
Less: Treasury shares at cost-2,551,084 in 2021 and 2,516,643 in 2020(78,068) (76,702)
TOTAL SHAREHOLDERS’ EQUITY598,112  596,992 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$4,681,216  $4,557,544 


  
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
  
 Three Months Ended March 31,
 2021 2020
  
 (unaudited)
  
  
INTEREST INCOME:   
Loans, including related fees$31,857  $35,034 
Securities:   
Taxable3,079  4,029 
Tax-exempt2,074  1,938 
Other346  402 
TOTAL INTEREST INCOME37,356  41,403 
INTEREST EXPENSE:   
Deposits2,286  4,530 
Short-term borrowings98  267 
Other borrowings59  256 
TOTAL INTEREST EXPENSE2,443  5,053 
NET INTEREST INCOME34,913  36,350 
Provision for credit losses452  2,690 
NET INTEREST INCOME AFTER PROVISION   
FOR LOAN LOSSES34,461  33,660 
NON-INTEREST INCOME:   
Trust and financial services1,305  1,534 
Service charges and fees on deposit accounts2,243  2,998 
Other service charges and fees4,242  3,330 
Securities gains (losses), net(152) 194 
Gain on sales of mortgage loans1,393  698 
Other263  341 
TOTAL NON-INTEREST INCOME9,294  9,095 
NON-INTEREST EXPENSE:   
Salaries and employee benefits15,677  15,972 
Occupancy expense2,149  1,929 
Equipment expense2,578  2,461 
FDIC Expense298  (230)
Other6,937  7,422 
TOTAL NON-INTEREST EXPENSE27,639  27,554 
INCOME BEFORE INCOME TAXES16,116  15,201 
Provision for income taxes3,239  3,020 
NET INCOME12,877  12,181 
OTHER COMPREHENSIVE INCOME   
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes(11,068) 13,098 
Change in funded status of post retirement benefits, net of taxes472  404 
COMPREHENSIVE INCOME$2,281  $25,683 
PER SHARE DATA   
Basic and Diluted Earnings per Share$0.95  $0.89 
Weighted average number of shares outstanding (in thousands)13,533  13,740 

 


Primary Logo

Source: First Financial Corporation Indiana

2021 GlobeNewswire, Inc., source Press Releases