• First Financial Corporation Reports 2024 Results

    Source: Nasdaq GlobeNewswire / 04 Feb 2025 10:00:00   America/New_York

    TERRE HAUTE, Ind., Feb. 04, 2025 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the fourth quarter of 2024.

    • Net income was $16.2 million compared to $12.4 million reported for the same period of 2023;
    • Diluted net income per common share of $1.37 compared to $1.06 for the same period of 2023;
    • Return on average assets was 1.18% compared to 1.05% for the three months ended December 31, 2023;
    • Credit loss provision was $2.0 million compared to provision of $2.5 million for the fourth quarter 2023; and
    • Pre-tax, pre-provision net income was $22.3 million compared to $16.6 million for the same period in 2023.1

    The Corporation further reported results for the year ended December 31, 2024:

    • Net income was $47.3 million compared to $60.7 million reported for the same period of 2023;
    • Diluted net income per common share of $4.00 compared to $5.08 for the same period of 2023;
    • Return on average assets was 0.92% compared to 1.26% for the twelve months ended December 31, 2023;
    • Credit loss provision was $16.2 million compared to provision of $7.3 million for the twelve months ended December 31, 2023; and
    • Pre-tax, pre-provision net income was $73.4 million compared to $79.7 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 fourth quarter of 2024 were $3.79 billion versus $3.13 billion for the comparable period in 2023, an increase of $657 million or 20.98%. On a linked quarter basis, average loans increased $84.7 million or 2.29% from $3.71 billion as of September 30, 2024. Increases in average loans year-over-year were mostly a result of the acquisition of SimplyBank on July 1, 2024.

    Total Loans Outstanding

    Total loans outstanding as of December 31, 2024, were $3.84 billion compared to $3.17 billion as of December 31, 2023, an increase of $669 million or 21.13%. On a linked quarter basis, total loans increased $122 million or 3.28% from $3.72 billion as of September 30, 2024. The year-over-year increase was impacted by the $467 million in loans acquired in the SimplyBank acquisition. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

    Norman D. Lowery, President and Chief Executive Officer, commented “We experienced another sound quarter of loan growth and record net interest income. During the quarter our net interest margin expanded, and we expect continued improvement in coming quarters.”

    Average Total Deposits

    Average total deposits for the quarter ended December 31, 2024, were $4.76 billion versus $4.05 billion as of December 31, 2023, an increase of $706 million or 17.44%. Increases in average deposits year-over-year were mostly a result of the acquisition of SimplyBank. On a linked quarter basis, average deposits increased $52 million, or 1.10% from $4.71 billion as of September 30, 2024.

    Total Deposits

    Total deposits were $4.72 billion as of December 31, 2024, compared to $4.09 billion as of December 31, 2023, a $629 million increase, or 15.37%. On a linked quarter basis, total deposits increased $1.4 million, or 0.03%. $622 million in deposits were acquired in the SimplyBank acquisition. Non-interest bearing deposits were $859.0 million, and time deposits were $749.4 million as of December 31, 2024, compared to $750.3 million and $515.7 million, respectively for the same period of 2023.

    Shareholders’ Equity

    Shareholders’ equity at December 31, 2024, was $549.0 million compared to $528.0 million on December 31, 2023. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.45 per share quarterly dividend in October and declared a $0.51 quarterly dividend, which was paid on January 15, 2025.

    Book Value Per Share

    Book Value per share was $46.36 as of December 31, 2024, compared to $44.76 as of December 31, 2023, an increase of $1.60 per share, or 3.57%. Tangible Book Value per share was $36.10 as of December 31, 2024, compared to $36.91 as of December 31, 2023.

    Tangible Common Equity to Tangible Asset Ratio

    The Corporation’s tangible common equity to tangible asset ratio was 7.86% at December 31, 2024, compared to 9.15% at December 31, 2023.

    Net Interest Income

    Net interest income for the fourth quarter of 2024 was a record $49.6 million, compared to $39.6 million reported for the same period of 2023, an increase of $10.0 million, or 25.29%.

    Net Interest Margin

    The net interest margin for the quarter ended December 31, 2024, was 3.94% compared to the 3.63% reported at December 31, 2023. On a linked quarterly basis, the net interest margin increased 16 basis points from 3.78% at September 30, 2024.

    Nonperforming Loans

    Nonperforming loans as of December 31, 2024, were $13.3 million versus $24.6 million as of December 31, 2023. The ratio of nonperforming loans to total loans and leases was 0.35% as of December 31, 2024, versus 0.78% as of December 31, 2023. The decrease in nonperforming loans is due to a commercial relationship that was downgraded in fourth quarter 2023 and subsequently resolved in 2024.

    Credit Loss Provision

    The provision for credit losses for the three months ended December 31, 2024, was $2.0 million, compared to $2.5 million for the fourth quarter 2023.

    Net Charge-Offs

    Fourth quarter net charge-offs were $1.4 million compared to $1.8 million in the same period of 2023.

    Allowance for Credit Losses

    The Corporation’s allowance for credit losses as of December 31, 2024, was $46.7 million compared to $39.8 million as of December 31, 2023. The allowance for credit losses as a percent of total loans was 1.22% as of December 31, 2024, compared to 1.26% as of December 31, 2023. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased 2 basis points from 1.24% as of September 30, 2024. The Corporation recorded $8.5 million in allowance for the acquisition of SimplyBank, which included $3 million to record purchased credit deteriorated (“PCD”) reserves.

    Non-Interest Income

    Non-interest income for the three months ended December 31, 2024 and 2023 was $12.2 million and $11.2 million, respectively.

    Non-Interest Expense

    Non-interest expense for the three months ended December 31, 2024, was $39.8 million compared to $34.2 million in 2023. This includes an overall increase in operating expenses as a result of the acquisition.

    Efficiency Ratio

    The Corporation’s efficiency ratio was 62.98% for the quarter ending December 31, 2024, versus 65.62% for the same period in 2023.

    Income Taxes

    Income tax expense for the three months ended December 31, 2024, was $3.8 million versus $1.7 million for the same period in 2023. The effective tax rate for 2024 was 17.28% compared to 16.31% for 2023.

    About First Financial Corporation

    First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 83 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. 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  Year Ended
     December 31,  September 30, December 31,  December 31,  December 31, 
     2024    2024    2023    2024    2023
    END OF PERIOD BALANCES                   
    Assets$5,560,348  $5,483,351  $4,851,146  $5,560,348  $4,851,146 
    Deposits$4,718,914  $4,717,489  $4,090,068  $4,718,914  $4,090,068 
    Loans, including net deferred loan costs$3,837,141  $3,715,235  $3,167,821  $3,837,141  $3,167,821 
    Allowance for Credit Losses$46,732  $46,169  $39,767  $46,732  $39,767 
    Total Equity$549,041  $565,951  $527,976  $549,041  $527,976 
    Tangible Common Equity (a)$427,470  $446,786  $435,405  $427,470  $435,405 
                        
    AVERAGE BALANCES                        
    Total Assets$5,516,036  $5,483,572  $4,725,297  $5,154,320  $4,802,448 
    Earning Assets$5,196,352  $5,165,520  $4,485,766  $4,871,293  $4,564,135 
    Investments$1,311,415  $1,342,037  $1,279,821  $1,310,263  $1,358,661 
    Loans$3,790,515  $3,705,779  $3,133,267  $3,468,534  $3,111,784 
    Total Deposits$4,757,438  $4,705,614  $4,050,968  $4,405,679  $4,106,132 
    Interest-Bearing Deposits$3,925,740  $4,403,454  $3,291,931  $3,767,259  $3,304,816 
    Interest-Bearing Liabilities$134,553  $157,227  $206,778  $166,377  $199,551 
    Total Equity$556,330  $546,912  $463,004  $535,963  $486,572 
                        
    INCOME STATEMENT DATA                        
    Net Interest Income$49,602  $47,170  $39,590  $174,986  $167,262 
    Net Interest Income Fully Tax Equivalent (b)$50,985  $48,630  $40,942  $180,586  $172,716 
    Provision for Credit Losses$2,000  $9,400  $2,495  $16,166  $7,295 
    Non-interest Income$12,213  $11,223  $11,247  $42,772  $42,702 
    Non-interest Expense$39,801  $38,564  $34,244  $144,438  $130,176 
    Net Income$16,241  $8,741  $12,420  $47,275  $60,672 
                        
    PER SHARE DATA                        
    Basic and Diluted Net Income Per Common Share$1.37  $0.74  $1.06  $4.00  $5.08 
    Cash Dividends Declared Per Common Share$0.51  $0.45  $0.45  $1.86  $0.99 
    Book Value Per Common Share$46.36  $47.93  $44.76  $46.36  $44.76 
    Tangible Book Value Per Common Share (c)$36.77  $36.22  $31.47  $36.10  $36.91 
    Basic Weighted Average Common Shares Outstanding 11,824   11,808   11,772   11,812   11,937 

    ______________________________
    (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 RatiosThree Months Ended  Year Ended  
     December 31,    September 30,    December 31,    December 31,    December 31, 
     2024       2024       2023       2024       2023 
    Return on average assets1.18 %0.64 %1.05 %0.92 %1.26 %
    Return on average common shareholder's equity11.68 %6.39 %10.73 %8.82 %12.47 %
    Efficiency ratio62.98 %64.43 %65.62 %64.67 %60.43 %
    Average equity to average assets10.09 %9.97 %9.80 %10.40 %10.13 %
    Net interest margin (a)3.94 %3.78 %3.63 %3.71 %3.78 %
    Net charge-offs to average loans and leases0.15 %0.49 %0.22 %0.35 %0.23 %
    Credit loss reserve to loans and leases1.22 %1.24 %1.26 %1.22 %1.26 %
    Credit loss reserve to nonperforming loans351.37 %326.65 %161.94 %351.37 %161.94 %
    Nonperforming loans to loans and leases0.35 %0.38 %0.78 %0.35 %0.78 %
    Tier 1 leverage10.38 %10.25 %12.14 %10.38 %12.14 %
    Risk-based capital - Tier 112.43 %13.63 %14.76 %12.43 %14.76 %

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

                        
    Asset QualityThree Months Ended  Year Ended
     December 31,     September 30,    December 31,     December 31,     December 31, 
     2024 2024 2023 2024 2023
    Accruing loans and leases past due 30-89 days$22,486  $16,391  $20,168  $22,486  $20,168 
    Accruing loans and leases past due 90 days or more$1,821  $1,517  $960  $1,821  $960 
    Nonaccrual loans and leases$11,479  $12,617  $23,596  $11,479  $23,596 
    Other real estate owned$523  $169  $107  $523  $107 
    Nonperforming loans and other real estate owned$13,823  $14,303  $24,663  $13,823  $24,663 
    Total nonperforming assets$16,719  $17,179  $27,665  $16,719  $27,665 
    Gross charge-offs$3,070  $6,936  $3,976  $19,289  $15,496 
    Recoveries$1,633  $2,365  $2,213  $7,082  $8,188 
    Net charge-offs/(recoveries)$1,437  $4,571  $1,763  $12,207  $7,308 


            
    Non-GAAP ReconciliationsThree Months Ended December 31, 
     2024    2023
    ($in thousands, except EPS)       
    Income before Income Taxes$20,014  $14,098 
    Provision for credit losses 2,000   2,495 
    Provision for unfunded commitments 300   — 
    Pre-tax, Pre-provision Income$22,314  $16,593 


           
    Non-GAAP ReconciliationsYear Ended December 31, 
     2024    2023
    ($ in thousands, except EPS)      
    Income before Income Taxes$57,154  $72,493 
    Provision for credit losses 16,166   7,295 
    Provision for unfunded commitments 100   (100)
    Pre-tax, Pre-provision Income$73,420  $79,688 


          
    CONSOLIDATED BALANCE SHEETS
    (Dollar amounts in thousands, except per share data)
          
     December 31,     December 31, 
     2024 2023
     (unaudited)
    ASSETS     
    Cash and due from banks$93,526  $76,759 
    Federal funds sold 820   282 
    Securities available-for-sale 1,195,990   1,259,137 
    Loans:     
    Commercial 2,196,351   1,817,526 
    Residential 967,386   695,788 
    Consumer 668,058   646,758 
      3,831,795   3,160,072 
    (Less) plus:       
    Net deferred loan costs 5,346   7,749 
    Allowance for credit losses (46,732)  (39,767)
      3,790,409   3,128,054 
    Restricted stock 17,555   15,364 
    Accrued interest receivable 26,934   24,877 
    Premises and equipment, net 81,508   67,286 
    Bank-owned life insurance 128,766   114,122 
    Goodwill 100,026   86,985 
    Other intangible assets 21,545   5,586 
    Other real estate owned 523   107 
    Other assets 102,746   72,587 
    TOTAL ASSETS$5,560,348  $4,851,146 
          
    LIABILITIES AND SHAREHOLDERS’ EQUITY       
    Deposits:       
    Non-interest-bearing$859,014  $750,335 
    Interest-bearing:     
    Certificates of deposit exceeding the FDIC insurance limits 144,982   92,921 
    Other interest-bearing deposits 3,714,918   3,246,812 
      4,718,914   4,090,068 
    Short-term borrowings 187,057   67,221 
    FHLB advances 28,120   108,577 
    Other liabilities 77,216   57,304 
    TOTAL LIABILITIES 5,011,307   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-11,842,539 in 2024 and 11,795,024 in 2023 2,018   2,014 
    Additional paid-in capital 145,927   144,152 
    Retained earnings 687,366   663,726 
    Accumulated other comprehensive income/(loss) (132,285)  (127,087)
    Less: Treasury shares at cost-4,322,484 in 2024 and 4,342,196 in 2023 (153,985)  (154,829)
    TOTAL SHAREHOLDERS’ EQUITY 549,041   527,976 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$5,560,348  $4,851,146 


     
    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    (Dollar amounts in thousands, except per share data)
             
     Year Ended
     December 31, 
     2024    2023 2022
     (unaudited)
    INTEREST INCOME:        
    Loans, including related fees$226,262  $189,641  $146,295 
    Securities:          
    Taxable 24,237   24,643   21,014 
    Tax-exempt 10,533   10,573   9,974 
    Other 3,710   3,540   6,018 
    TOTAL INTEREST INCOME 264,742   228,397   183,301 
    INTEREST EXPENSE:           
    Deposits 81,071   51,694   16,743 
    Short-term borrowings 4,284   5,370   1,243 
    Other borrowings 4,401   4,071   273 
    TOTAL INTEREST EXPENSE 89,756   61,135   18,259 
    NET INTEREST INCOME 174,986   167,262   165,042 
    Provision for credit losses 16,166   7,295   (2,025)
    NET INTEREST INCOME AFTER PROVISION           
    FOR LOAN LOSSES 158,820   159,967   167,067 
    NON-INTEREST INCOME:          
    Trust and financial services 5,468   5,155   5,155 
    Service charges and fees on deposit accounts 29,653   28,079   27,540 
    Other service charges and fees 999   801   665 
    Securities gains (losses), net 103   (1)  3 
    Interchange income 655   676   559 
    Loan servicing fees 1,259   1,176   1,554 
    Gain on sales of mortgage loans 1,153   966   1,994 
    Other 3,482   5,850   9,246 
    TOTAL NON-INTEREST INCOME 42,772   42,702   46,716 
    NON-INTEREST EXPENSE:           
    Salaries and employee benefits 74,555   68,525   65,555 
    Occupancy expense 9,616   9,351   9,764 
    Equipment expense 17,612   14,020   12,391 
    FDIC Expense 2,788   2,907   2,327 
    Other 39,867   35,373   35,986 
    TOTAL NON-INTEREST EXPENSE 144,438   130,176   126,023 
    INCOME BEFORE INCOME TAXES 57,154   72,493   87,760 
    Provision for income taxes 9,879   11,821   16,651 
    NET INCOME 47,275   60,672   71,109 
    OTHER COMPREHENSIVE INCOME (LOSS)           
    Change in unrealized gains/(losses) on securities, net of reclassifications and taxes (9,807)  10,896   (144,570)
    Change in funded status of post retirement benefits, net of taxes 4,609   1,991   7,022 
    COMPREHENSIVE INCOME (LOSS)$42,077  $73,559  $(66,439)
    PER SHARE DATA           
    Basic and Diluted Earnings per Share$4.00  $5.08  $5.82 
    Weighted average number of shares outstanding (in thousands) 11,812   11,937   12,211 

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