First Financial Corporation Reports First Quarter Results
First Financial reported a net income of $10.9 million for Q1 2024 compared to $16.0 million in Q1 2023. Diluted net income per share was $0.93 versus $1.33 for the same period in 2023. Return on average assets decreased to 0.91% from 1.32% in Q1 2023. Credit loss provision remained unchanged at $1.8 million. Pre-tax, pre-provision net income was $14.9 million versus $21.4 million in Q1 2023. Total loans outstanding and deposits increased, while nonperforming loans, net interest income, and net interest margin saw declines.
Strong loan growth with total loans outstanding and average total loans increasing.
Stable asset quality and strong capital levels reported by the company.
Shareholders' equity increased to $520.8 million, with a rise in Book Value and Tangible Book Value per share.
Decline in net income, diluted net income per share, and return on average assets compared to Q1 2023.
Decrease in net interest income and net interest margin for Q1 2024.
Increase in nonperforming loans and non-interest expense for the company.
Insights
First Financial Corporation's Q1 results reveal a contraction in net income to
Another indicator to consider is the Return on Average Assets (ROAA), which has decreased from
Lastly, the efficiency ratio has deteriorated from
The Q1 results exhibit a mixed financial landscape for First Financial Corporation. Loan growth, driven by Commercial Real Estate and Consumer Auto segments, signifies an active lending market and potential interest income streams. Conversely, average total deposits contraction from
While the balance sheet shows a steady increase in total loans outstanding and shareholders' equity, the rise in nonperforming loans from
When dissecting First Financial Corporation's Q1 results, one must consider the tangible book value per share increment from
However, investors should weigh these positive aspects against the diminished net interest income, which has decreased from
TERRE HAUTE, Ind., April 30, 2024 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the first quarter of 2024.
- Net income was
$10.9 million compared to the$16.0 million reported for the same period of 2023; - Diluted net income per common share of
$0.93 compared to$1.33 for the same period of 2023; - Return on average assets was
0.91% compared to1.32% for the three months ended March 31, 2023; - Credit loss provision was
$1.8 million compared to provision of$1.8 million for the first quarter 2023; and - Pre-tax, pre-provision net income was
$14.9 million compared to$21.4 million for the same period in 2023.1
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 2024 were
Total Loans Outstanding
Total loans outstanding as of March 31, 2024, were
“We are pleased with our first quarter results, as we experienced another quarter of solid loan growth,” said Norman D. Lowery, President and Chief Executive Officer. “Our balance sheet is strong, our asset quality is stable, and our capital levels remain strong.”
Average Total Deposits
Average total deposits for the quarter ended March 31, 2024, were
Total Deposits
Total deposits were
Shareholders’ Equity
Shareholders’ equity at March 31, 2024, was
Book Value Per Share
Book Value per share was
Tangible Common Equity to Tangible Asset Ratio
The Corporation’s tangible common equity to tangible asset ratio was
Net Interest Income
Net interest income for the first quarter of 2024 was
Net Interest Margin
The net interest margin for the quarter ended March 31, 2024, was
Nonperforming Loans
Nonperforming loans as of March 31, 2024, were
Credit Loss Provision
The provision for credit losses for the three months ended March 31, 2024, was
Net Charge-Offs
In the first quarter of 2024 net charge-offs were
Allowance for Credit Losses
The Corporation’s allowance for credit losses as of March 31, 2024, was
Non-Interest Income
Non-interest income for the three months ended March 31, 2024 was
Non-Interest Expense
Non-interest expense for the three months ended March 31, 2024, was
Efficiency Ratio
The Corporation’s efficiency ratio was
Income Taxes
Income tax expense for the three months ended March 31, 2024, was
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 70 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, | |||||||||
2024 | 2023 | 2023 | |||||||||
END OF PERIOD BALANCES | |||||||||||
Assets | $ | 4,852,615 | $ | 4,851,146 | $ | 4,866,821 | |||||
Deposits | $ | 4,105,103 | $ | 4,090,068 | $ | 4,165,398 | |||||
Loans, including net deferred loan costs | $ | 3,191,983 | $ | 3,167,821 | $ | 3,080,044 | |||||
Allowance for Credit Losses | $ | 40,045 | $ | 39,767 | $ | 39,620 | |||||
Total Equity | $ | 520,766 | $ | 527,976 | $ | 505,499 | |||||
Tangible Common Equity(a) | $ | 428,430 | $ | 435,405 | $ | 412,118 | |||||
AVERAGE BALANCES | |||||||||||
Total Assets | $ | 4,804,364 | $ | 4,725,297 | $ | 4,851,484 | |||||
Earning Assets | $ | 4,566,461 | $ | 4,485,766 | $ | 4,613,126 | |||||
Investments | $ | 1,308,322 | $ | 1,279,821 | $ | 1,407,944 | |||||
Loans | $ | 3,180,147 | $ | 3,133,267 | $ | 3,068,716 | |||||
Total Deposits | $ | 4,045,838 | $ | 4,050,968 | $ | 4,252,161 | |||||
Interest-Bearing Deposits | $ | 3,326,090 | $ | 3,291,931 | $ | 3,407,590 | |||||
Interest-Bearing Liabilities | $ | 221,425 | $ | 206,778 | $ | 96,160 | |||||
Total Equity | $ | 522,720 | $ | 463,004 | $ | 487,834 | |||||
INCOME STATEMENT DATA | |||||||||||
Net Interest Income | $ | 38,920 | $ | 39,590 | $ | 44,335 | |||||
Net Interest Income Fully Tax Equivalent(b) | $ | 40,297 | $ | 40,942 | $ | 45,654 | |||||
Provision for Credit Losses | $ | 1,800 | $ | 2,495 | $ | 1,800 | |||||
Non-interest Income | $ | 9,431 | $ | 11,247 | $ | 9,375 | |||||
Non-interest Expense | $ | 33,422 | $ | 34,244 | $ | 32,321 | |||||
Net Income | $ | 10,924 | $ | 12,420 | $ | 15,980 | |||||
PER SHARE DATA | |||||||||||
Basic and Diluted Net Income Per Common Share | $ | 0.93 | $ | 1.06 | $ | 1.33 | |||||
Cash Dividends Declared Per Common Share | $ | 0.45 | $ | 0.45 | $ | — | |||||
Book Value Per Common Share | $ | 44.08 | $ | 44.76 | $ | 41.89 | |||||
Tangible Book Value Per Common Share(c) | $ | 36.26 | $ | 31.47 | $ | 34.16 | |||||
Basic Weighted Average Common Shares Outstanding | 11,803 | 11,772 | 12,058 | ||||||||
(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
(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, | |||||||||
2024 | 2023 | 2023 | |||||||||
Return on average assets | 0.91 | % | 1.05 | % | 1.32 | % | |||||
Return on average common shareholder's equity | 8.36 | % | 10.73 | % | 13.10 | % | |||||
Efficiency ratio | 67.21 | % | 65.62 | % | 58.73 | % | |||||
Average equity to average assets | 10.88 | % | 9.80 | % | 10.06 | % | |||||
Net interest margin(a) | 3.53 | % | 3.63 | % | 3.96 | % | |||||
Net charge-offs to average loans and leases | 0.19 | % | 0.22 | % | 0.26 | % | |||||
Credit loss reserve to loans and leases | 1.25 | % | 1.26 | % | 1.29 | % | |||||
Credit loss reserve to nonperforming loans | 165.12 | % | 161.94 | % | 328.06 | % | |||||
Nonperforming loans to loans and leases | 0.76 | % | 0.78 | % | 0.39 | % | |||||
Tier 1 leverage | 12.02 | % | 12.14 | % | 11.30 | % | |||||
Risk-based capital - Tier 1 | 14.69 | % | 14.76 | % | 14.27 | % | |||||
(a) Net interest margin is calculated on a tax equivalent basis.
Asset Quality | Three Months Ended | ||||||||||
March 31, | December 31, | March 31, | |||||||||
2024 | 2023 | 2023 | |||||||||
Accruing loans and leases past due 30-89 days | $ | 17,937 | $ | 20,168 | $ | 18,934 | |||||
Accruing loans and leases past due 90 days or more | $ | 1,395 | $ | 960 | $ | 1,157 | |||||
Nonaccrual loans and leases | $ | 22,857 | $ | 23,596 | $ | 10,920 | |||||
Other real estate owned | $ | 167 | $ | 107 | $ | 336 | |||||
Nonperforming loans and other real estate owned | $ | 24,419 | $ | 24,663 | $ | 12,413 | |||||
Total nonperforming assets | $ | 27,307 | $ | 27,665 | $ | 15,327 | |||||
Gross charge-offs | $ | 3,192 | $ | 3,976 | $ | 4,376 | |||||
Recoveries | $ | 1,670 | $ | 2,213 | $ | 2,417 | |||||
Net charge-offs/(recoveries) | $ | 1,522 | $ | 1,763 | $ | 1,959 |
Non-GAAP Reconciliations | Three Months Ended March 31, | ||||||
2024 | 2023 | ||||||
($in thousands, except EPS) | |||||||
Income before Income Taxes | $ | 13,129 | $ | 19,589 | |||
Provision for credit losses | 1,800 | 1,800 | |||||
Provision for unfunded commitments | — | — | |||||
Pre-tax, Pre-provision Income | $ | 14,929 | $ | 21,389 |
CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data) | |||||||
March 31, | December 31, | ||||||
2024 | 2023 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 69,231 | $ | 76,759 | |||
Federal funds sold | — | 282 | |||||
Securities available-for-sale | 1,218,287 | 1,259,137 | |||||
Loans: | |||||||
Commercial | 1,816,854 | 1,817,526 | |||||
Residential | 710,496 | 695,788 | |||||
Consumer | 657,299 | 646,758 | |||||
3,184,649 | 3,160,072 | ||||||
(Less) plus: | |||||||
Net deferred loan costs | 7,334 | 7,749 | |||||
Allowance for credit losses | (40,045 | ) | (39,767 | ) | |||
3,151,938 | 3,128,054 | ||||||
Restricted stock | 15,371 | 15,364 | |||||
Accrued interest receivable | 23,851 | 24,877 | |||||
Premises and equipment, net | 66,830 | 67,286 | |||||
Bank-owned life insurance | 114,683 | 114,122 | |||||
Goodwill | 86,985 | 86,985 | |||||
Other intangible assets | 5,351 | 5,586 | |||||
Other real estate owned | 167 | 107 | |||||
Other assets | 99,921 | 72,587 | |||||
TOTAL ASSETS | $ | 4,852,615 | $ | 4,851,146 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Non-interest-bearing | $ | 738,478 | $ | 750,335 | |||
Interest-bearing: | |||||||
Certificates of deposit exceeding the FDIC insurance limits | 109,228 | 92,921 | |||||
Other interest-bearing deposits | 3,257,397 | 3,246,812 | |||||
4,105,103 | 4,090,068 | ||||||
Short-term borrowings | 88,873 | 67,221 | |||||
FHLB advances | 58,576 | 108,577 | |||||
Other liabilities | 79,297 | 57,304 | |||||
TOTAL LIABILITIES | 4,331,849 | 4,323,170 | |||||
Shareholders’ equity | |||||||
Common stock, $.125 stated value per share; | |||||||
Authorized shares-40,000,000 | |||||||
Issued shares-16,165,023 in 2024 and 16,137,220 in 2023 | |||||||
Outstanding shares-11,814,093 in 2024 and 11,795,024 in 2023 | 2,015 | 2,014 | |||||
Additional paid-in capital | 144,391 | 144,152 | |||||
Retained earnings | 667,675 | 663,726 | |||||
Accumulated other comprehensive income/(loss) | (138,110 | ) | (127,087 | ) | |||
Less: Treasury shares at cost-4,350,930 in 2024 and 4,342,196 in 2023 | (155,205 | ) | (154,829 | ) | |||
TOTAL SHAREHOLDERS’ EQUITY | 520,766 | 527,976 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 4,852,615 | $ | 4,851,146 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2024 | 2023 | ||||||
INTEREST INCOME: | |||||||
Loans, including related fees | $ | 50,052 | $ | 44,595 | |||
Securities: | |||||||
Taxable | 5,931 | 6,236 | |||||
Tax-exempt | 2,603 | 2,598 | |||||
Other | 817 | 1,271 | |||||
TOTAL INTEREST INCOME | 59,403 | 54,700 | |||||
INTEREST EXPENSE: | |||||||
Deposits | 17,731 | 9,527 | |||||
Short-term borrowings | 976 | 808 | |||||
Other borrowings | 1,776 | 30 | |||||
TOTAL INTEREST EXPENSE | 20,483 | 10,365 | |||||
NET INTEREST INCOME | 38,920 | 44,335 | |||||
Provision for credit losses | 1,800 | 1,800 | |||||
NET INTEREST INCOME AFTER PROVISION | |||||||
FOR LOAN LOSSES | 37,120 | 42,535 | |||||
NON-INTEREST INCOME: | |||||||
Trust and financial services | 1,333 | 1,317 | |||||
Service charges and fees on deposit accounts | 6,708 | 6,818 | |||||
Other service charges and fees | 223 | 204 | |||||
Securities gains (losses), net | — | — | |||||
Interchange income | 179 | 47 | |||||
Loan servicing fees | 269 | 285 | |||||
Gain on sales of mortgage loans | 176 | 180 | |||||
Other | 543 | 524 | |||||
TOTAL NON-INTEREST INCOME | 9,431 | 9,375 | |||||
NON-INTEREST EXPENSE: | |||||||
Salaries and employee benefits | 17,330 | 17,158 | |||||
Occupancy expense | 2,359 | 2,599 | |||||
Equipment expense | 4,144 | 3,299 | |||||
FDIC Expense | 662 | 787 | |||||
Other | 8,927 | 8,478 | |||||
TOTAL NON-INTEREST EXPENSE | 33,422 | 32,321 | |||||
INCOME BEFORE INCOME TAXES | 13,129 | 19,589 | |||||
Provision for income taxes | 2,205 | 3,609 | |||||
NET INCOME | 10,924 | 15,980 | |||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes | (11,096 | ) | 14,238 | ||||
Change in funded status of post retirement benefits, net of taxes | 73 | 147 | |||||
COMPREHENSIVE INCOME (LOSS) | $ | (99 | ) | $ | 30,365 | ||
PER SHARE DATA | |||||||
Basic and Diluted Earnings per Share | $ | 0.93 | $ | 1.33 | |||
Weighted average number of shares outstanding (in thousands) | 11,803 | 12,058 |
FAQ
What was the net income for First Financial in Q1 2024?
What was the diluted net income per share for the company in Q1 2024?
How did the return on average assets change for First Financial in Q1 2024 compared to Q1 2023?
What was the credit loss provision for the company in the first quarter of 2024?