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First Financial Corporation Reports Second Quarter Results
المصدر: Nasdaq GlobeNewswire / 26 يوليو 2022 10:00:01 America/New_York
TERRE HAUTE, Ind., July 26, 2022 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the second quarter of 2022.
- Net income was $15.6 million compared to $16.6 million for the same period of 2021;
- Diluted net income per common share of $1.27 compared to $1.24 for the same period of 2021;
- Return on average assets was 1.24% compared to 1.40% for the three months ended June 30, 2021;
- Credit loss provision was $750 thousand compared to negative provision for credit losses of $2.3 million for the second quarter 2021; and
- Pre-tax, pre-provision net income was $19.7 million compared to $18.6 million for the same period in 2021.1
The Corporation further reported results for the six months ending June 30, 2022:
- Net income was $36.5 million compared to $29.5 million for the same period of 2021;
- Diluted net income per common share of $2.95 compared to $2.19 for the same period of 2021;
- Return on average assets was 1.43% compared to 1.26% for the six months ended June 30, 2021;
- Negative provision for credit losses was $5.8 million compared to negative provision for credit losses of $1.7 million for the six months ended June 30, 2021; and
- Pre-tax, pre-provision net income was $39.4 million compared to $35.1 million for the same period in 2021.1
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.
“We are pleased with our second quarter results” said Norman L. Lowery, Chairman and Chief Executive Officer. “Loan growth continues to be strong which contributed to our fifth straight quarter of net interest income growth.”
Average Total Loans
Average total loans for the second quarter of 2022 were $2.83 billion versus $2.62 billion for the comparable period in 2021, an increase of $206 million or 7.86%.Total Loans Outstanding
Total loans outstanding as of June 30, 2022 were $2.89 billion compared to $2.57 billion as of June 30, 2021, an increase of $319 million or 12.41%. On a linked quarter basis, total loans increased $82.9 million or 2.95% from $2.80 billion as of March 31, 2022.Average Total Deposits
Average total deposits for the quarter ended June 30, 2022, were $4.42 billion versus $3.98 billion as of June 30, 2021, an increase of $436 million or 10.93%.Total Deposits
Total deposits were $4.38 billion as of June 30, 2022, compared to $3.99 billion as of June 30, 2021, an increase of $395 million or 9.89%.Book Value Per Share
Book Value per share was $38.36 at June 30, 2022, compared to $45.08 at June 30, 2021. The decrease was partially driven by the repurchase of 1,056,597 shares of the Corporation's common stock.Shareholder Equity
Shareholder equity at June 30, 2022, was $461.5 million compared to $588.2 million on June 30, 2021. In the quarter the Corporation repurchased 404,186 shares of its common stock.Tangible Common Equity to Tangible Asset Ratio
The Corporation’s tangible common equity to tangible asset ratio was 7.48% at June 30, 2022, compared to 10.75% at June 30, 2021. The decrease was partially driven by the aforementioned share repurchases.Net Interest Income
Net interest income for the second quarter of 2022 was $40.5 million, compared to $35.6 million reported for the same period of 2021, an increase of $4.8 million or 13.59%.Net Interest Margin
The net interest margin for the quarter ended June 30, 2022, was 3.46% compared to the 3.23% reported at June 30, 2021. On a linked quarter basis, the net interest margin increased 30 basis points from 3.16% as of March 31, 2022.Nonperforming Loans
Nonperforming loans as of June 30, 2022, were $13.5 million versus $20.0 million as of June 30, 2021. The ratio of nonperforming loans to total loans and leases was 0.47% as of June 30, 2022, versus 0.78% as of June 30, 2021.Credit Loss Provision
The provision for credit losses for the three months ended June 30, 2022 was $750 thousand, compared to a negative provision for credit losses of $2.2 million for the second quarter 2021.Net Charge-Offs
In the second quarter of 2022 net recoveries were $202 thousand compared to $152 thousand in the same period of 2021.Allowance for Credit Losses
The Corporation’s allowance for credit losses as of June 30, 2022, was $41.5 million compared to $44.7 million as of June 30, 2021. The allowance for credit losses as a percent of total loans was 1.44% as of June 30, 2022, compared to 1.74% as of June 30, 2021.Non-Interest Income
Non-interest income for the three months ended June 30, 2022 and 2021 was $10.3 million and $10.9 million, respectively.Non-Interest Expense
Non-interest expense for the three months ended June 30, 2022, was $30.7 million compared to $28.0 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 59.06% for the quarter ending June 30, 2022, versus 58.75% for the same period in 2021.Income Taxes
Income tax expense for the three months ended June 30, 2022, was $3.7 million versus $4.1 million for the same period in 2021. The effective tax rate for 2022 was 19.17% compared to 19.97% 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.comThree Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 END OF PERIOD BALANCES Assets $ 5,006,648 $ 5,081,794 $ 4,756,284 $ 5,006,648 $ 4,756,284 Deposits $ 4,383,257 $ 4,395,190 $ 3,988,751 $ 4,383,257 $ 3,988,751 Loans, including net deferred loan costs $ 2,887,527 $ 2,804,650 $ 2,568,713 $ 2,887,527 $ 2,568,713 Allowance for Credit Losses $ 41,468 $ 40,516 $ 41,756 $ 41,468 $ 41,756 Total Equity $ 461,531 $ 525,444 $ 588,163 $ 461,531 $ 588,163 Tangible Common Equity(a) $ 367,210 $ 431,629 $ 501,459 $ 367,210 $ 501,459 AVERAGE BALANCES Total Assets $ 5,046,846 $ 5,149,642 $ 4,751,068 $ 5,098,244 $ 4,675,909 Earning Assets $ 4,809,570 $ 4,927,680 $ 4,552,581 $ 4,868,625 $ 4,478,345 Investments $ 1,432,321 $ 1,468,471 $ 1,244,551 $ 1,450,396 $ 1,188,995 Loans $ 2,825,684 $ 2,777,168 $ 2,619,887 $ 2,801,426 $ 2,630,089 Total Deposits $ 4,416,542 $ 4,427,806 $ 3,981,243 $ 4,422,174 $ 3,898,974 Interest-Bearing Deposits $ 3,519,122 $ 3,525,766 $ 3,173,782 $ 3,522,444 $ 3,116,536 Interest-Bearing Liabilities $ 103,223 $ 106,005 $ 101,594 $ 104,614 $ 106,021 Total Equity $ 494,233 $ 565,123 $ 600,599 $ 529,678 $ 600,634 INCOME STATEMENT DATA Net Interest Income $ 40,469 $ 37,811 $ 35,628 $ 78,280 $ 70,541 Net Interest Income Fully Tax Equivalent(b) $ 41,665 $ 38,908 $ 36,719 $ 80,573 $ 72,678 Provision for Credit Losses $ 750 $ (6,550 ) $ (2,196 ) $ (5,800 ) $ (1,744 ) Non-interest Income $ 10,270 $ 13,738 $ 10,931 $ 24,008 $ 20,225 Non-interest Expense $ 30,674 $ 31,344 $ 27,996 $ 62,018 $ 55,635 Net Income $ 15,613 $ 20,924 $ 16,614 $ 36,537 $ 29,491 PER SHARE DATA Basic and Diluted Net Income Per Common Share $ 1.27 $ 1.67 $ 1.24 $ 2.95 $ 2.19 Cash Dividends Declared Per Common Share $ 0.54 $ — $ 0.53 $ 0.54 $ 0.53 Book Value Per Common Share $ 38.36 $ 42.25 $ 45.08 $ 38.36 $ 45.08 Tangible Book Value Per Common Share(c) $ 32.65 $ 34.71 $ 38.31 $ 30.52 $ 38.43 Basic Weighted Average Common Shares Outstanding 12,248 12,538 13,414 12,393 13,473 (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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Return on average assets 1.24 % 1.63 % 1.40 % 1.43 % 1.26 % Return on average common shareholder's equity 12.64 % 14.81 % 11.06 % 13.80 % 9.82 % Efficiency ratio 59.06 % 59.54 % 58.75 % 59.30 % 59.89 % Average equity to average assets 9.79 % 10.97 % 12.64 % 10.39 % 12.85 % Net interest margin(a) 3.46 % 3.16 % 3.23 % 3.31 % 3.25 % Net charge-offs to average loans and leases (0.03 )% 0.18 % (0.02 )% 0.07 % 0.04 % Credit loss reserve to loans and leases 1.44 % 1.44 % 1.74 % 1.44 % 1.74 % Credit loss reserve to nonperforming loans 306.97 % 312.60 % 223.46 % 306.97 % 223.46 % Nonperforming loans to loans and leases 0.47 % 0.46 % 0.78 % 0.47 % 0.78 % Tier 1 leverage 9.97 % 9.94 % 10.72 % 9.97 % 10.72 % Risk-based capital - Tier 1 13.51 % 14.46 % 17.15 % 13.51 % 17.15 % (a) Net interest margin is calculated on a tax equivalent basis.
Asset Quality Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Accruing loans and leases past due 30-89 days $ 20,273 $ 13,698 $ 9,430 $ 20,273 $ 9,430 Accruing loans and leases past due 90 days or more $ 980 $ 707 $ 1,202 $ 980 $ 1,202 Nonaccrual loans and leases $ 8,383 $ 7,712 $ 14,356 $ 8,383 $ 14,356 Total troubled debt restructuring $ 4,146 $ 4,542 $ 4,460 $ 4,146 $ 4,460 Other real estate owned $ 170 $ 236 $ 989 $ 170 $ 989 Nonperforming loans and other real estate owned $ 13,679 $ 13,197 $ 21,007 $ 13,679 $ 21,007 Total nonperforming assets $ 16,766 $ 16,728 $ 24,272 $ 16,766 $ 24,272 Gross charge-offs $ 2,411 $ 3,254 $ 1,151 $ 5,665 $ 3,489 Recoveries $ 2,613 $ 2,015 $ 1,303 $ 4,628 $ 2,913 Net charge-offs/(recoveries) $ (202 ) $ 1,239 $ (152 ) $ 1,037 $ 576 Non-GAAP Reconciliations Three Months Ended June 30, 2022 2021 ($ in thousands, except EPS) Income before Income Taxes $ 19,315 $ 20,759 Provision for credit losses 750 (2,196 ) Provision for unfunded commitments (350 ) — Pre-tax, Pre-provision Income $ 19,715 $ 18,563 Non-GAAP Reconciliations Six Months Ended June 30, 2022 2021 ($ in thousands, except EPS) Income before Income Taxes $ 46,070 $ 36,875 Provision for credit losses (5,800 ) (1,744 ) Provision for unfunded commitments (850 ) — Pre-tax, Pre-provision Income $ 39,420 $ 35,131 CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)June 30,
2022December 31,
2021(unaudited) ASSETS Cash and due from banks $ 412,136 $ 682,807 Federal funds sold 11,133 308 Securities available-for-sale 1,338,452 1,364,734 Loans: Commercial 1,707,105 1,674,066 Residential 670,641 664,509 Consumer 509,781 474,026 2,887,527 2,812,601 (Less) plus: Net deferred loan costs 4,961 3,294 Allowance for credit losses (41,468 ) (48,305 ) 2,851,020 2,767,590 Restricted stock 15,620 16,200 Accrued interest receivable 16,701 16,946 Premises and equipment, net 69,022 69,522 Bank-owned life insurance 117,695 116,997 Goodwill 86,985 86,135 Other intangible assets 7,336 8,024 Other real estate owned 170 108 Other assets 80,378 45,728 TOTAL ASSETS $ 5,006,648 $ 5,175,099 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Non-interest-bearing $ 886,204 $ 914,933 Interest-bearing: Certificates of deposit exceeding the FDIC insurance limits 60,311 74,015 Other interest-bearing deposits 3,436,742 3,420,621 4,383,257 4,409,569 Short-term borrowings 84,232 93,374 FHLB advances 15,912 15,937 Other liabilities 61,716 73,643 TOTAL LIABILITIES 4,545,117 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-12,031,123 in 2022 and 12,629,893 in 2021 2,011 2,009 Additional paid-in capital 142,390 141,979 Retained earnings 589,169 559,139 Accumulated other comprehensive income/(loss) (126,630 ) (2,426 ) Less: Treasury shares at cost-4,083,869 in 2022 and 3,466,420 in 2021 (145,409 ) (118,125 ) TOTAL SHAREHOLDERS’ EQUITY 461,531 582,576 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,006,648 $ 5,175,099 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (unaudited) INTEREST INCOME: Loans, including related fees $ 34,305 $ 31,966 $ 66,662 $ 63,823 Securities: Taxable 6,048 3,355 10,631 6,434 Tax-exempt 2,492 2,163 4,840 4,237 Other 358 387 723 733 TOTAL INTEREST INCOME 43,203 37,871 82,856 75,227 INTEREST EXPENSE: Deposits 2,473 2,090 4,149 4,376 Short-term borrowings 176 94 258 192 Other borrowings 85 59 169 118 TOTAL INTEREST EXPENSE 2,734 2,243 4,576 4,686 NET INTEREST INCOME 40,469 35,628 78,280 70,541 Provision for credit losses 750 (2,196 ) (5,800 ) (1,744 ) NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 39,719 37,824 84,080 72,285 NON-INTEREST INCOME: Trust and financial services 1,300 1,313 2,672 2,618 Service charges and fees on deposit accounts 2,886 2,327 5,736 4,570 Other service charges and fees 4,997 5,039 9,396 9,281 Securities gains (losses), net — 258 5 106 Gain on sales of mortgage loans 603 1,450 1,265 2,843 Other 484 544 4,934 807 TOTAL NON-INTEREST INCOME 10,270 10,931 24,008 20,225 NON-INTEREST EXPENSE: Salaries and employee benefits 15,668 16,031 33,010 31,708 Occupancy expense 2,372 2,002 4,894 4,151 Equipment expense 2,959 2,440 5,866 5,018 FDIC Expense 542 287 970 585 Other 9,133 7,236 17,278 14,173 TOTAL NON-INTEREST EXPENSE 30,674 27,996 62,018 55,635 INCOME BEFORE INCOME TAXES 19,315 20,759 46,070 36,875 Provision for income taxes 3,702 4,145 9,533 7,384 NET INCOME 15,613 16,614 36,537 29,491 OTHER COMPREHENSIVE INCOME (LOSS) Change in unrealized gains/(losses) on securities, net of reclassifications and taxes (55,919 ) 1,772 (124,833 ) (9,296 ) Change in funded status of post retirement benefits, net of taxes 314 472 629 944 COMPREHENSIVE INCOME (LOSS) $ (39,992 ) $ 18,858 $ (87,667 ) $ 21,139 PER SHARE DATA Basic and Diluted Earnings per Share $ 1.27 $ 1.24 $ 2.95 $ 2.19 Weighted average number of shares outstanding (in thousands) 12,248 13,414 12,393 13,473 
