First Financial Corporation reports 2016 results
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TERRE HAUTE, IN -- (Marketwired) -- 02/07/17 -- First Financial Corporation (NASDAQ: THFF) today announced results for the fourth quarter of 2016. Net income increased 17.29% to $8.3 million compared to $7.1 million for the same period of 2015. Diluted net income per common share increased 21.43% to $0.68 from $0.56 for the comparable period of 2015.
The Corporation further reported net income of $38.4 million for the twelve months ended December 31, 2016 versus $30.2 million for the comparable period of 2015, an increase of 27.21%. Diluted net income per common share also increased 32.77% to $3.12 for the twelve months ended December 31, 2016 versus $2.35 for the comparable period of 2015. This increase included an after-tax gain on the sale of the Corporation's insurance subsidiary of $5.8 million. Return on assets for the twelve months ended December 31, 2016 was 1.30% compared to 1.01% for the twelve months ended December 31, 2015.
Norman L. Lowery, President and Chief Executive Officer, commented, "We are pleased with our 2016 results. Net income was the highest in the history of the company and we had another solid quarter of loan growth."
Book value per share was $33.92 at December 31, 2016, a 5.32% increase from the $32.21 at December 31, 2015. Shareholders' equity increased to $414.4 million on December 31, 2016 from $410.3 million on December 31, 2015.
On February 3, 2016 the Corporation announced a stock repurchase plan to acquire 5% of the Corporation's outstanding common stock. The Corporation has repurchased a total of 565,618 shares under the plan.
Average total loans for the fourth quarter of 2016 were $1.83 billion, an increase of $81.0 million or 4.63%, versus the $1.75 billion for the comparable period in 2015. Total loans outstanding were $1.84 billion as of December 31, 2016, an increase from $1.76 billion as of December 31, 2015. On a linked quarter basis, average total loans increased $29.8 million for the quarter ended December 31, 2016, or 1.66%, from $1.80 billion for the quarter ending September 30, 2016.
Average total deposits for the quarter ended December 31, 2016 were $2.46 billion versus $2.44 billion for the quarter ended December 31, 2015. On a linked quarter basis, average deposits increased $64.65 million for the quarter ended December 31, 2016 from the $2.40 billion for the quarter ending September 30, 2016.
The company's tangible common equity to tangible asset ratio was 12.80% at December 31, 2016, compared to 12.51% at December 31, 2015.
Net interest income for the fourth quarter of 2016 was $26.4 million compared to the $26.0 million reported for the same period of 2015. The net interest margin for the twelve months ended December 31, 2016 was unchanged at 4.04% compared to December 31, 2015.
The provision for loan losses for the three months ended December 31, 2016 was $939 thousand compared to $1.05 million for the fourth quarter of 2015. Net charge-offs were $1.2 million for the fourth quarter of 2016 compared to $1.0 million in the same period of 2015. The Corporation's allowance for loan losses as of December 31, 2016 was $18.8 million compared to $19.9 million as of December 31, 2015. The allowance for loan losses as a percent of total loans was 1.02% as of December 31, 2016 compared to 1.13% as of December 31, 2015.
Nonperforming loans decreased 10.96% to $22.7 million as of December 31, 2016 versus $25.5 million as of December 31, 2015. The ratio of nonperforming loans to total loans and leases was 1.42% as of December 31, 2016 versus 1.44% as of December 31, 2015.
Non-interest income for the three months ended December 31, 2016 was $8.4 compared to $9.4 million as of December 31, 2015. The decline was primarily related to the sale of the Corporation's insurance subsidiary, which reduced insurance commissions by $1.7 million quarter-over-quarter.
Non-interest expense for the three months ended December 31, 2016 decreased $2.8 million to $22.2 million compared to $24.9 million in 2015. On a quarter-over-quarter basis, salaries and employee benefits decreased $1.9 million driven by lower health insurance and pension expense. The Corporation's efficiency ratio was 57.13% for the year ending December 31, 2016 versus 65.63% for the same period in 2015.
First Financial Corporation is the holding company for First Financial Bank N.A. in Indiana and Illinois, and The Morris Plan Company of Terre Haute.
Three Months Ended Year Ended
December September December December December
31, 30, 31, 31, 31,
2016 2016 2015 2016 2015
END OF PERIOD
BALANCES
Assets $2,988,527 $3,019,323 $2,979,585 $2,988,527 $2,979,585
Deposits $2,428,526 $2,479,241 $2,442,369 $2,428,526 $2,442,369
Loans $1,839,180 $1,821,525 $1,763,808 $1,839,180 $1,763,808
Allowance for Loan
Losses $ 18,773 $ 19,074 $ 19,946 $ 18,773 $ 19,946
Total Equity $ 414,395 $ 422,374 $ 410,316 $ 414,395 $ 410,316
Tangible Common
Equity $ 377,931 $ 385,766 $ 367,649 $ 377,931 $ 367,649
AVERAGE BALANCES
Total Assets $2,970,031 $2,977,329 $2,974,567 $2,963,380 $2,976,931
Earning Assets $2,778,369 $2,742,151 $2,735,328 $2,748,165 $2,744,469
Investments $ 923,957 $ 936,059 $ 950,245 $ 940,490 $ 964,309
Loans $1,830,628 $1,800,796 $1,749,261 $1,792,609 $1,761,888
Total Deposits $2,464,246 $2,399,596 $2,443,478 $2,426,203 $2,446,331
Interest-Bearing
Deposits $1,895,665 $1,855,077 $1,889,350 $1,875,226 $1,901,623
Interest-Bearing
Borrowings $ 35,531 $ 59,815 $ 41,269 $ 46,556 $ 47,107
Total Equity $ 405,261 $ 433,511 $ 408,730 $ 415,032 $ 404,845
INCOME STATEMENT DATA
Net Interest Income $ 26,406 $ 26,351 $ 26,012 $ 104,973 $ 104,507
Net Interest Income
Fully Tax
Equivalent $ 27,956 $ 27,907 $ 27,561 $ 111,156 $ 110,744
Provision for Loan
Losses $ 939 $ 1,091 $ 1,050 $ 3,300 $ 4,700
Non-interest Income $ 8,428 $ 7,923 $ 9,389 $ 46,931 $ 39,179
Non-interest
Expense $ 22,195 $ 22,006 $ 24,943 $ 90,308 $ 98,398
Net Income $ 8,344 $ 8,162 $ 7,114 $ 38,413 $ 30,196
PER SHARE DATA
Basic and Diluted
Net Income Per
Common Share $ 0.68 $ 0.68 $ 0.56 $ 3.12 $ 2.35
Cash Dividends
Declared Per
Common Share $ 0.50 $ 0.50 $ 0.49 $ 0.50 $ 0.98
Book Value Per
Common Share $ 33.92 $ 33.89 $ 32.21 $ 33.92 $ 32.21
Tangible Book Value
Per Common Share $ 30.94 $ 30.88 $ 28.86 $ 30.94 $ 28.86
Basic Weighted
Average Common
Shares Outstanding 12,201 12,236 12,722 12,317 12,836
Key Ratios Three Months Ended Year Ended
December September December December December
31, 30, 31, 31, 31,
2016 2016 2015 2016 2015
Return on average
assets 1.12% 1.10% 0.96% 1.30% 1.01%
Return on average
common shareholder's
equity 8.24% 7.23% 6.96% 9.26% 7.46%
Efficiency ratio 61.00% 61.42% 67.51% 57.13% 65.63%
Average equity to
average assets 13.65% 14.56% 13.74% 14.01% 13.60%
Net interest margin 4.01% 4.05% 4.04% 4.04% 4.04%
Net charge-offs to
average loans and
leases 0.27% 0.34% 0.20% 0.25% 0.14%
Loan and lease loss
reserve to loans and
leases 1.02% 1.05% 1.13% 1.02% 1.13%
Loan and lease loss
reserve to
nonperforming loans
and other real
estate 74.50% 65.69% 68.96% 74.50% 68.96%
Nonperforming loans
to loans 1.43% 1.61% 1.46% 1.43% 1.46%
Tier 1 leverage 13.39% 13.23% 12.92% 13.39% 12.92%
Risk-based capital -
Tier 1 17.43% 17.46% 17.69% 17.43% 17.69%
Asset Quality Three Months Ended Year Ended
December September December December December
31, 30, 31, 31, 31,
2016 2016 2015 2016 2015
Accruing loans and
leases past due 30-
89 days $ 10,757 $ 6,983 $ 12,294 $ 10,757 $ 12,294
Accruing loans and
leases past due 90
days or more $ 610 $ 1,144 $ 964 $ 610 $ 964
Nonaccrual loans and
leases $ 13,492 $ 16,235 $ 14,634 $ 13,492 $ 14,634
Nonperforming loans
and other real
estate $ 25,198 $ 29,037 $ 28,924 $ 25,198 $ 28,924
Other real estate
owned $ 2,531 $ 2,772 $ 3,466 $ 2,531 $ 3,466
Total nonperforming
assets $ 37,567 $ 40,548 $ 43,799 $ 37,567 $ 43,799
Total troubled debt
restructurings $ 8,565 $ 8,886 $ 9,860 $ 8,565 $ 9,860
Gross charge-offs $ 2,743 $ 2,724 $ 1,931 $ 8,949 $ 8,528
Recoveries $ 1,500 $ 1,202 $ 902 $ 4,473 $ 4,935
Net charge-
offs/(recoveries) $ 1,243 $ 1,522 $ 1,029 $ 4,476 $ 3,593
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
December 31, December 31,
2016 2015
------------- -------------
(unaudited)
----------------------------
ASSETS
Cash and due from banks $ 75,012 $ 88,695
Federal funds sold 6,952 9,815
Securities available-for-sale 853,725 891,082
Loans:
Commercial 1,106,182 1,043,980
Residential 423,911 444,447
Consumer 305,881 272,896
------------- -------------
1,835,974 1,761,323
(Less) plus:
Net deferred loan costs 3,206 2,485
Allowance for loan losses (18,773) (19,946)
------------- -------------
1,820,407 1,743,862
Restricted stock 10,359 10,838
Accrued interest receivable 12,311 11,733
Premises and equipment, net 49,240 50,531
Bank-owned life insurance 83,737 82,323
Goodwill 34,355 39,489
Other intangible assets 2,109 3,178
Other real estate owned 2,531 3,466
Other assets 37,789 44,573
------------- -------------
TOTAL ASSETS $ 2,988,527 $ 2,979,585
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing $ 564,092 $ 563,302
Interest-bearing:
Certificates of deposit exceeding the FDIC
insurance limits 43,759 46,753
Other interest-bearing deposits 1,820,675 1,832,314
------------- -------------
2,428,526 2,442,369
Short-term borrowings 80,989 33,831
FHLB advances 132 12,677
Other liabilities 64,485 80,392
------------- -------------
TOTAL LIABILITIES 2,574,132 2,569,269
Shareholders' equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-14,578,758 in 2016 and
14,557,815 in 2015
Outstanding shares-12,185,737 in 2016 and
12,740,018 in 2015 1,820 1,817
Additional paid-in capital 74,525 73,396
Retained earnings 421,826 395,633
Accumulated other comprehensive loss (14,164) (9,401)
Less: Treasury shares at cost-2,393,021 in
2016 and 1,817,797 in 2015 (69,612) (51,129)
------------- -------------
TOTAL SHAREHOLDERS' EQUITY 414,395 410,316
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,988,527 $ 2,979,585
============= =============
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)
Years Ended December 31,
2016 2015 2014
--------- --------- ---------
(unaudited)
-------------------------------
INTEREST INCOME:
Loans, including related fees $ 86,128 $ 84,022 $ 87,530
Securities:
Taxable 14,506 15,815 17,015
Tax-exempt 7,269 7,194 7,084
Other 1,477 1,645 1,729
--------- --------- ---------
TOTAL INTEREST INCOME 109,380 108,676 113,358
--------- --------- ---------
INTEREST EXPENSE:
Deposits 4,159 3,934 4,624
Short-term borrowings 134 70 99
Other borrowings 114 165 803
--------- --------- ---------
TOTAL INTEREST EXPENSE 4,407 4,169 5,526
--------- --------- ---------
NET INTEREST INCOME 104,973 104,507 107,832
Provision for loan losses 3,300 4,700 5,072
--------- --------- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 101,673 99,807 102,760
NON-INTEREST INCOME:
Trust and financial services 5,208 5,586 5,860
Service charges and fees on deposit
accounts 10,530 10,145 10,772
Other service charges and fees 12,307 11,798 11,697
Securities gains/(losses), net 34 17 (3)
Gain on sale of certain assets and
liabilities of insurance brokerage 12,822 - -
Insurance commissions 2,346 6,945 7,646
Gain on sales of mortgage loans 1,842 1,998 1,849
Other 1,842 2,690 2,964
--------- --------- ---------
TOTAL NON-INTEREST INCOME 46,931 39,179 40,785
--------- --------- ---------
NON-INTEREST EXPENSE:
Salaries and employee benefits 52,730 60,109 55,936
Occupancy expense 6,865 6,978 7,218
Equipment expense 7,300 6,991 7,269
FDIC Expense 1,300 1,769 1,931
Other 22,113 22,551 23,230
--------- --------- ---------
TOTAL NON-INTEREST EXPENSE 90,308 98,398 95,584
--------- --------- ---------
INCOME BEFORE INCOME TAXES 58,296 40,588 47,961
Provision for income taxes 19,883 10,392 14,189
--------- --------- ---------
NET INCOME 38,413 30,196 33,772
OTHER COMPREHENSIVE INCOME
Change in unrealized gains/losses on
securities, net of reclassifications and
taxes (10,130) (1,225) 13,913
Change in funded status of post retirement
benefits, net of taxes 5,367 6,353 (14,473)
--------- --------- ---------
COMPREHENSIVE INCOME $ 33,650 $ 35,324 $ 33,212
========= ========= =========
PER SHARE DATA
Basic and Diluted Earnings per Share $ 3.12 $ 2.35 $ 2.55
========= ========= =========
Weighted average number of shares
outstanding (in thousands) 12,317 12,836 13,226
========= ========= =========
For more information contact: Rodger A. McHargue(812) 238-6334
Source: First Financial Corp.
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