STOCK TITAN
  1. Home
  2. News
  3. THFF

First Financial Corporation Reports Third Quarter Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Negative)
Tags
Rhea-AI Summary

First Financial Corporation (NASDAQ:THFF) reported a strong performance for the third quarter of 2021, achieving net income of $16.1 million, up from $14.0 million in Q3 2020. Diluted earnings per share reached $1.24 compared to $1.02 a year prior. Total average deposits increased by 12.49% to $4.04 billion, while total loans decreased to $2.48 billion. The return on average assets improved to 1.34%, reflecting strong asset quality. However, net interest income slightly decreased to $36.0 million, and the net interest margin fell to 3.22%.

Positive
  • Net income increased to $16.1 million, up from $14.0 million in Q3 2020.
  • Diluted earnings per share rose to $1.24 from $1.02 a year ago.
  • Return on average assets improved to 1.34%, compared to 1.28% in 2020.
  • Average total deposits increased by 12.49% to $4.04 billion.
  • Nonperforming loans decreased to $19.5 million from $23.7 million in 2020.
Negative
  • Total loans outstanding decreased to $2.48 billion from $2.75 billion in 2020.
  • Net interest income fell to $36.0 million from $36.5 million in Q3 2020.
  • Net interest margin decreased to 3.22% from 3.99% in the prior year.
  • Shareholder equity decreased to $594.9 million from $607.1 million in 2020.

TERRE HAUTE, Ind., Oct. 26, 2021 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the period ending September 30, 2021:

For the quarter:

  • Net income was $16.1 million compared to $14.0 million for the same period of 2020;
  • Diluted net income per common share of $1.24 compared to $1.02 for the same period of 2020; and
  • Return on average assets was 1.34% compared to 1.28% for the three months ended September 30, 2020.

The Corporation further reported results for the nine months ending September 30, 2021:

  • Net income was $45.6 million compared to $38.1 million for the same period of 2020;
  • Diluted net income per common share of $3.42 compared to $2.78 for the same period of 2020; and
  • Return on average assets was 1.28% compared to 1.20% for the nine months ended September 30, 2020.

“We are pleased with our third quarter results” said Norman L. Lowery, Chairman and Chief Executive Officer. “Asset quality continues to be good which has allowed us to release additional credit loss reserves which were established during the pandemic. We continue to focus on our customers and assisting them as needed as they navigate the many challenges of the ongoing pandemic.”

Average Total Loans
Average total loans for the third quarter of 2021 were $2.52 billion versus $2.77 billion for the comparable period in 2020.

Total Loans Outstanding
Total loans outstanding as of September 30, 2021 were $2.48 billion compared to $2.75 billion as of September 30, 2020. Total Paycheck Protection Program ("PPP") loans as of September 30, 2021 were $40.9 million compared to $169.6 million for the same period of 2020.

Average Total Deposits
Average total deposits for the quarter ended September 30, 2021, were $4.04 billion versus $3.59 billion as of September 30, 2020, an increase of $449 million or 12.49%.

Total Deposits
Total deposits were $4.03 billion as of September 30, 2021, compared to $3.60 billion as of September 30, 2020, an increase of $424 million or 11.77%. On a linked quarter basis, total deposits increased $40 million from $3.99 billion for the quarter ending June 30, 2021.

Book Value Per Share
Book Value per share was $46.22 at September 30, 2021, compared to $44.27 at September 30, 2020 an increase of 4.41%.

Shareholder Equity
Shareholder equity at September 30, 2021, was $594.9 million compared to $607.1 million on September 30, 2020. In the quarter the Corporation repurchased 176,293 shares of its common stock.

Tangible Common Equity to Tangible Asset Ratio
The Corporation’s tangible common equity to tangible asset ratio was 10.79% at September 30, 2021, compared to 12.07% at September 30, 2020.

Net Interest Income
Net interest income for the third quarter of 2021 was $36.0 million, compared to $36.5 million reported for the same period of 2020.

Net Interest Margin
The net interest margin for the quarter ended September 30, 2021, was 3.22% compared to the 3.99% reported at September 30, 2020.

Nonperforming Loans
Nonperforming loans as of September 30, 2021, were $19.5 million versus $23.7 million as of September 30, 2020. The ratio of nonperforming loans to total loans and leases was 0.79% as of September 30, 2021, versus 0.86% as of September 30, 2020.

Credit Loss Provision
The provision for credit losses for the three months ended September 30, 2021, was $(1.50) million compared to the $4.43 million provision for the third quarter of 2020. 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.

Net Charge-Offs/Recoveries
In the third quarter of 2021 net charge-offs were $270 thousand compared to $750 thousand 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 September 30, 2021, was $43.0 million compared to $27.0 million as of September 30, 2020. The increase is primarily related to the adoption of CECL. The allowance for credit losses as a percent of total loans was 1.73% as of September 30, 2021, compared to 0.98% as of September 30, 2020. The allowance as of September 30, 2021 was calculated using CECL. The allowance as of September 30, 2020 was calculated using the incurred loss method.

Non-Interest Income
Non-interest income for the three months ended September 30, 2021 and 2020 was $11.1 million and $11.7 million, respectively.

Non-Interest Expense
Non-interest expense for the three months ended September 30, 2021, was $28.5 million compared to $27.1 million in 2020.

Efficiency Ratio
The Corporation’s efficiency ratio was 59.01% for the quarter ending September 30, 2021, versus 54.97% for the same period in 2020.

Income Taxes
Income tax expense for the nine months ended September 30, 2021, was $11.4 million versus $8.6 million for the same period in 2020. The effective tax rate for 2021 was 20.07% compared to 18.47% for 2020.

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
 Nine Months Ended
  September 30,
 June 30,
 September 30,
 September 30,
 September 30,
  2021
 2021
 2020
 2021
 2020
END OF PERIOD BALANCES      
Assets $4,801,093  $4,753,308  $4,389,996  $4,801,093  $4,389,996 
Deposits $4,028,636  $3,988,751  $3,604,353  $4,028,636  $3,604,353 
Loans, including net deferred loan costs $2,479,910  $2,568,713  $2,753,493  $2,479,910  $2,753,493 
Allowance for Credit Losses $42,962  $44,732  $26,960  $42,962  $26,960 
Total Equity $594,935  $588,163  $607,095  $594,935  $607,095 
Tangible Common Equity (a) $508,618  $501,459  $519,098  $508,618  $519,098 
       
AVERAGE BALANCES      
Total Assets $4,818,880  $4,751,068  $4,379,798  $4,723,566  $4,239,866 
Earning Assets $4,615,235  $4,552,581  $3,776,803  $4,523,975  $3,707,653 
Investments $1,325,651  $1,244,551  $1,008,303  $1,234,547  $995,457 
Loans $2,515,639  $2,619,887  $2,768,003  $2,591,939  $2,710,953 
Total Deposits $4,041,441  $3,981,243  $3,592,633  $3,946,463  $3,463,263 
Interest-Bearing Deposits $3,223,948  $3,173,782  $2,887,575  $3,152,340  $2,828,521 
Interest-Bearing Liabilities $106,936  $101,594  $108,236  $106,326  $112,290 
Total Equity $599,011  $600,599  $603,067  $600,093  $588,095 
       
INCOME STATEMENT DATA      
Net Interest Income $36,028  $35,628  $36,531  $106,569  $108,776 
Net Interest Income Fully Tax Equivalent (b) $37,134  $36,719  $37,612  $109,812  $111,983 
Provision for Credit Losses $(1,500) $(2,196) $4,425  $(3,244) $10,080 
Non-interest Income $11,092  $10,931  $11,739  $31,317  $29,610 
Non-interest Expense $28,459  $27,996  $27,130  $84,094  $81,567 
Net Income $16,098  $16,614  $14,000  $45,589  $38,105 
       
PER SHARE DATA      
Basic and Diluted Net Income Per Common Share $1.24  $1.24  $1.02  $3.42  $2.78 
Cash Dividends Declared Per Common Share $—  $0.53  $—  $0.53  $0.52 
Book Value Per Common Share $46.22  $45.08  $44.27  $46.22  $44.27 
Tangible Book Value Per Common Share (c) $39.38  $38.31  $37.56  $39.51  $37.85 
Basic Weighted Average Common Shares Outstanding 13,019  13,414   13,715  13,320  13,723 

(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
 Nine Months Ended
  September 30,
 June 30,
 September 30,
 September 30,
 September 30,
  2021
 2021
 2020
 2021
 2020
Return on average assets 1.34 % 1.40 % 1.28 % 1.28 % 1.20 %
Return on average common shareholder's equity 10.75 % 11.06 % 9.29 % 10.10 % 8.62 %
Efficiency ratio 59.01 % 58.75 % 54.97 % 59.59 % 57.61 %
Average equity to average assets 12.43 % 12.64 % 13.77 % 12.70 % 13.87 %
Net interest margin (a) 3.22 % 3.23 % 3.99 % 3.24 % 4.03 %
Net charge-offs to average loans and leases 0.04 % (0.02)% 0.11 % 0.04 % 0.15 %
Credit loss reserve to loans and leases 1.73 % 1.74 % 0.98 % 1.73 % 0.98 %
Credit loss reserve to nonperforming loans 220.39 % 223.46 % 113.89 % 220.39 % 113.89 %
Nonperforming loans to loans and leases 0.79 % 0.78 % 0.86 % 0.79 % 0.86 %
Tier 1 leverage 10.77 % 10.72 % 11.81 % 10.77 % 11.81 %
Risk-based capital - Tier 1 16.63 % 17.15 % 15.70 % 16.63 % 15.70 %

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

Asset Quality Three Months Ended
 Nine Months Ended
  September 30,
 June 30,
 September 30,
 September 30,
 September 30,
  2021
 2021
 2020
 2021
 2020
Accruing loans and leases past due 30-89 days $10,765  $9,430  $13,490  $10,765  $13,490 
Accruing loans and leases past due 90 days or more $1,355  $1,202  $2,948  $1,355  $2,948 
Nonaccrual loans and leases $13,650  $14,356  $16,628  $13,650  $16,628 
Total troubled debt restructuring $4,489  $4,460  $4,097  $4,489  $4,097 
Other real estate owned $884  $989  $3,465  $884  $3,465 
Nonperforming loans and other real estate owned $20,378  $21,007  $27,138  $20,378  $27,138 
Total nonperforming assets $23,622  $24,272  $30,174  $23,622  $30,174 
Gross charge-offs $1,614  $1,151  $1,998  $5,103  $6,442 
Recoveries $1,344  $1,303  $1,248  $4,257  $3,379 
Net charge-offs/(recoveries) $270  $(152) $750  $846  $3,063 
                     


CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)

 September 30,
2021		 December 31,
2020
 (unaudited)
ASSETS   
Cash and due from banks$758,120  $657,470 
Federal funds sold6,183  301 
Securities available-for-sale1,270,820  1,020,744 
Loans:   
Commercial1,457,984  1,521,711 
Residential535,855  604,652 
Consumer482,115  479,750 
 2,475,954  2,606,113 
(Less) plus:   
Net deferred loan costs3,956  4,181 
Allowance for credit losses(42,962) (47,052)
 2,436,948  2,563,242 
Restricted stock14,837  14,812 
Accrued interest receivable15,963  16,957 
Premises and equipment, net63,187  62,063 
Bank-owned life insurance106,895  95,849 
Goodwill78,592  78,592 
Other intangible assets7,725  8,972 
Other real estate owned884  1,012 
Other assets40,939  37,530 
TOTAL ASSETS$4,801,093  $4,557,544 
    
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Deposits:   
Non-interest-bearing$814,902  $732,694 
Interest-bearing:   
Certificates of deposit exceeding the FDIC insurance limits68,920  107,764 
Other interest-bearing deposits3,144,814  2,915,487 
 4,028,636  3,755,945 
Short-term borrowings101,051  116,061 
FHLB advances5,902  5,859 
Other liabilities70,569  82,687 
TOTAL LIABILITIES4,206,158  3,960,552 
    
Shareholders’ equity   
Common stock, $.125 stated value per share;   
Authorized shares-40,000,000   
Issued shares-16,096,313 in 2021 and 16,075,154 in 2020   
Outstanding shares-12,871,936 in 2021 and 13,558,511 in 20202,009  2,007 
Additional paid-in capital141,456  140,820 
Retained earnings559,693  521,103 
Accumulated other comprehensive income/(loss)(1,102) 9,764 
Less: Treasury shares at cost-3,224,377 in 2021 and 2,516,643 in 2020(107,121) (76,702)
TOTAL SHAREHOLDERS’ EQUITY594,935  596,992 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$4,801,093  $4,557,544 
        


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2021 2020 2021 2020
  
 (unaudited)
INTEREST INCOME:       
Loans, including related fees$31,937  $34,077  $95,760  $102,335 
Securities:       
Taxable3,627  3,005  10,061  10,658 
Tax-exempt2,234  1,994  6,471  5,940 
Other347  463  1,080  1,265 
TOTAL INTEREST INCOME38,145  39,539  113,372  120,198 
INTEREST EXPENSE:       
Deposits1,959  2,689  6,335  10,238 
Short-term borrowings99  107  291  475 
Other borrowings59  212  177  709 
TOTAL INTEREST EXPENSE2,117  3,008  6,803  11,422 
NET INTEREST INCOME36,028  36,531  106,569  108,776 
Provision for credit losses(1,500) 4,425  (3,244) 10,080 
NET INTEREST INCOME AFTER PROVISION       
FOR LOAN LOSSES37,528  32,106  109,813  98,696 
NON-INTEREST INCOME:       
Trust and financial services1,156  1,210  3,774  4,032 
Service charges and fees on deposit accounts2,697  2,516  7,267  7,616 
Other service charges and fees4,466  4,269  13,747  11,468 
Securities gains (losses), net5  5  111  230 
Gain on sales of mortgage loans1,425  2,910  4,268  4,813 
Other1,343  829  2,150  1,451 
TOTAL NON-INTEREST INCOME11,092  11,739  31,317  29,610 
NON-INTEREST EXPENSE:       
Salaries and employee benefits15,770  15,474  47,478  45,769 
Occupancy expense2,151  2,003  6,302  6,094 
Equipment expense2,177  2,739  7,195  7,873 
FDIC Expense313  135  898  (46)
Other8,048  6,779  22,221  21,877 
TOTAL NON-INTEREST EXPENSE28,459  27,130  84,094  81,567 
INCOME BEFORE INCOME TAXES20,161  16,715  57,036  46,739 
Provision for income taxes4,063  2,715  11,447  8,634 
NET INCOME16,098  14,000  45,589  38,105 
OTHER COMPREHENSIVE INCOME       
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes(2,985) 2,223  (12,281) 18,451 
Change in funded status of post retirement benefits, net of taxes471  383  1,415  1,171 
COMPREHENSIVE INCOME$13,584  $16,606  $34,723  $57,727 
PER SHARE DATA       
Basic and Diluted Earnings per Share$1.24  $1.02  $3.42  $2.78 
Weighted average number of shares outstanding (in thousands)13,019  13,715  13,320  13,723 


FAQ

What were First Financial Corporation's earnings for Q3 2021?

First Financial Corporation reported a net income of $16.1 million for Q3 2021.

What is the diluted earnings per share for THFF in Q3 2021?

The diluted earnings per share for First Financial Corporation (THFF) in Q3 2021 was $1.24.

How did total deposits change for First Financial Corporation by September 30, 2021?

Total deposits increased by 11.77% to $4.03 billion compared to $3.60 billion in 2020.

What is the return on average assets for THFF as of September 30, 2021?

The return on average assets for First Financial Corporation (THFF) was 1.34% as of September 30, 2021.

Stock THFF logo
First Financial Corp/Indiana

NASDAQ:THFF

THFF Rankings

#3014 Ranked by Market Cap
#813 Ranked by Dividends

THFF Latest News

Oct 22, 2024
First Financial Corporation Reports Third Quarter Results
Sep 19, 2024
First Financial Corporation Declares Quarterly Dividend
Jul 23, 2024
First Financial Corporation Reports Second Quarter Results
Jun 24, 2024
First Financial Corporation Declares Quarterly Dividend
Apr 30, 2024
First Financial Corporation Reports First Quarter Results

THFF Stock Data

579.14M
11.81M
4.1%
77.52%
0.49%
Banks - Regional
State Commercial Banks
Link
United States of America
TERRE HAUTE