TERRE HAUTE, Ind., July 23, 2024 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the second quarter of 2024.

Net income was $11.4 million compared to the $16.0 million reported for the same period of 2023;
Diluted net income per common share of $0.96 compared to $1.33 for the same period of 2023;
Return on average assets was 0.94% compared to 1.34% for the three months ended June 30, 2023;
Credit loss provision was $3.0 million compared to provision of $1.8 million for the second quarter 2023; and
Pre-tax, pre-provision net income was $16.2 million compared to $21.2 million for the same period in 2023.¹

The Corporation further reported results for the six months ended June 30, 2024:

Net income was $22.3 million compared to the $32.0 million reported for the same period of 2023;
Diluted net income per common share of $1.89 compared to $2.66 for the same period of 2023;
Return on average assets was 0.93% compared to 1.33% for the six months ended June 30, 2023;
Credit loss provision was $4.8 million compared to provision of $3.6 million for the six months ended June 30, 2023; and
Pre-tax, pre-provision net income was $31.2 million compared to $42.6 million for the same period in 2023.¹

_________________________

¹Non-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 second quarter of 2024 were $3.20 billion versus $3.10 billion for the comparable period in 2023, an increase of $100 million or 3.22%. On a linked quarter basis, average loans increased $18 million or 0.55% from $3.18 billion as of March 31, 2024.

Total Loans Outstanding

Total loans outstanding as of June 30, 2024, were $3.20 billion compared to $3.13 billion as of June 30, 2023, an increase of $69 million or 2.21%, primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans. On a linked quarter basis, total loans increased $12.0 million or 0.38% from $3.19 billion as of March 31, 2024.

Norman D. Lowery, President and Chief Executive Officer, commented "We are pleased with our second quarter results, as we experienced another quarter of loan growth. We also saw our net interest margin expand during the quarter as cost of funds pressure moderated. We expect continued improvement in coming quarters. Additionally on July 1^st we closed our acquisition of SimplyBank expanding our footprint into attractive southeastern Tennessee markets."

Average Total Deposits

Average total deposits for the quarter ended June 30, 2024, were $4.11 billion versus $4.12 billion as of June 30, 2023.

Total Deposits

Total deposits were $4.13 billion as of June 30, 2024, compared to $4.06 billion as of June 30, 2023, a $69 million increase, or 1.70%. On a linked quarter basis, total deposits increased $27.2 million, or 0.66%. Non-interest bearing deposits were $748.5 million and time deposits were $585.8 million as of June 30, 2024, compared to $817.4 million and $414.2 million, respectively for the same period of 2023.

Shareholders' Equity

Shareholders' equity at June 30, 2024, was $530.7 million compared to $496.9 million on June 30, 2023. During the last twelve months, the Corporation has repurchased 228,457 shares of its common stock. There were no shares repurchased during the quarter. 518,860 shares remain available for repurchase under the current repurchase authorization. During the quarter, the Corporation paid a $0.45 per share quarterly dividend in April, and declared a $0.45 quarterly dividend paid on July 15, 2024.

Book Value Per Share

Book Value per share was $44.92 as of June 30, 2024, compared to $41.47 as of June 30, 2023, an increase of 8.33%. Tangible Book Value per share was $37.12 as of June 30, 2024, compared to $33.70 as of June 30, 2023, an increase of $3.42 per share or 10.15%.

Tangible Common Equity to Tangible Asset Ratio

The Corporation's tangible common equity to tangible asset ratio was 9.14% at June 30, 2024, compared to 8.44% at June 30, 2023.

Net Interest Income

Net interest income for the second quarter of 2024 was $39.3 million, compared to $42.2 million reported for the same period of 2023, a decrease of $2.9 million, or 6.86%, driven primarily by higher interest expense. Interest income increased $4.5 million and interest expense increased $7.4 million year-over-year.

Net Interest Margin

The net interest margin for the quarter ended June 30, 2024, was 3.57% compared to the 3.81% reported at June 30, 2023. On a linked quarterly basis, the net interest margin increased 4 basis points from 3.53% at March 31, 2024.

Nonperforming Loans

Nonperforming loans as of June 30, 2024, were $15.9 million versus $13.3 million as of June 30, 2023. The ratio of nonperforming loans to total loans and leases was 0.50% as of June 30, 2024, versus 0.43% as of June 30, 2023.

Credit Loss Provision

The provision for credit losses for the three months ended June 30, 2024, was $3.0 million, compared to $1.8 million for the second quarter 2023. The increase in provision as well as charge-offs discussed below were related to one previously identified credit, reflecting further deterioration in collateral values in the quarter.

Net Charge-Offs

In the second quarter of 2024 net charge-offs were $4.7 million compared to $1.5 million in the same period of 2023.

Allowance for Credit Losses

The Corporation's allowance for credit losses as of June 30, 2024, was $38.3 million compared to $39.9 million as of June 30, 2023. The allowance for credit losses as a percent of total loans was 1.20% as of June 30, 2024, compared to 1.28% as of June 30, 2023. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased 5 basis points from 1.25% as of March 31, 2024.

Non-Interest Income

Non-interest income for the three months ended June 30, 2024 and 2023 was $9.9 million and $10.5 million, respectively. The 2023 amount included a $760 thousand gain on the sale of a branch which had been closed.

Non-Interest Expense

Non-interest expense for the three months ended June 30, 2024, was $32.7 million compared to $31.3 million in 2023. This included $654 thousand of acquisition related expenses during the quarter.

Efficiency Ratio

The Corporation's efficiency ratio was 64.56% for the quarter ending June 30, 2024, versus 58.01% for the same period in 2023.

Income Taxes

Income tax expense for the three months ended June 30, 2024, was $2.2 million versus $3.5 million for the same period in 2023. The effective tax rate for 2024 was 16.29% compared to 17.99% for 2023.

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						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2024		2024		2023		2024		2023
END OF PERIOD BALANCES
Assets	$	4,891,068	$	4,852,615	$	4,877,231	$	4,891,068	$	4,877,231
Deposits	$	4,132,327	$	4,105,103	$	4,063,155	$	4,132,327	$	4,063,155
Loans, including net deferred loan costs	$	3,204,009	$	3,191,983	$	3,134,638	$	3,204,009	$	3,134,638
Allowance for Credit Losses	$	38,334	$	40,045	$	39,907	$	38,334	$	39,907
Total Equity	$	530,670	$	520,766	$	496,888	$	530,670	$	496,888
Tangible Common Equity ^(a)	$	438,569	$	428,430	$	403,824	$	438,569	$	403,824

AVERAGE BALANCES
Total Assets	$	4,813,308	$	4,804,364	$	4,818,760	$	4,808,836	$	4,835,122
Earning Assets	$	4,556,839	$	4,566,461	$	4,581,652	$	4,561,650	$	4,597,389
Investments	$	1,279,278	$	1,308,322	$	1,395,446	$	1,293,800	$	1,401,695
Loans	$	3,197,695	$	3,180,147	$	3,097,836	$	3,188,921	$	3,083,276
Total Deposits	$	4,113,826	$	4,045,838	$	4,121,097	$	4,079,832	$	4,186,629
Interest-Bearing Deposits	$	3,413,752	$	3,326,090	$	3,297,110	$	3,369,921	$	3,352,350
Interest-Bearing Liabilities	$	152,303	$	221,425	$	185,318	$	186,864	$	140,739
Total Equity	$	517,890	$	522,720	$	501,686	$	520,305	$	494,760

INCOME STATEMENT DATA
Net Interest Income	$	39,294	$	38,920	$	42,187	$	78,214	$	86,522
Net Interest Income Fully Tax Equivalent ^(b)	$	40,673	$	40,297	$	43,581	$	80,970	$	89,235
Provision for Credit Losses	$	2,966	$	1,800	$	1,800	$	4,766	$	3,600
Non-interest Income	$	9,905	$	9,431	$	10,453	$	19,336	$	19,828
Non-interest Expense	$	32,651	$	33,422	$	31,346	$	66,073	$	63,667
Net Income	$	11,369	$	10,924	$	15,987	$	22,293	$	31,967

PER SHARE DATA
Basic and Diluted Net Income Per Common Share	$	0.96	$	0.93	$	1.33	$	1.89	$	2.66
Cash Dividends Declared Per Common Share	$	0.45	$	0.45	$	0.54	$	0.90	$	0.54
Book Value Per Common Share	$	44.92	$	44.08	$	41.47	$	44.92	$	41.47
Tangible Book Value Per Common Share ^(c)	$	36.04	$	36.26	$	33.99	$	37.12	$	33.70
Basic Weighted Average Common Shares Outstanding		11,814		11,803		12,022		11,809		12,040

_________________________

(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,
	2024		2024		2023		2024		2023
Return on average assets	0.94	%	0.91	%	1.34	%	0.93	%	1.33	%
Return on average common shareholder's equity	8.78	%	8.36	%	12.75	%	8.57	%	12.92	%
Efficiency ratio	64.56	%	67.21	%	58.01	%	65.87	%	58.38	%
Average equity to average assets	10.76	%	10.88	%	10.48	%	10.82	%	10.27	%
Net interest margin ^(a)	3.57	%	3.53	%	3.81	%	3.55	%	3.88	%
Net charge-offs to average loans and leases	0.59	%	0.19	%	0.20	%	0.39	%	0.23	%
Credit loss reserve to loans and leases	1.20	%	1.25	%	1.28	%	1.20	%	1.28	%
Credit loss reserve to nonperforming loans	240.85	%	165.12	%	300.10	%	240.85	%	300.10	%
Nonperforming loans to loans and leases	0.50	%	0.76	%	0.43	%	0.50	%	0.43	%
Tier 1 leverage	12.14	%	12.02	%	11.49	%	12.14	%	11.49	%
Risk-based capital - Tier 1	14.82	%	14.69	%	14.44	%	14.82	%	14.44	%

_________________________

(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,
	2024		2024		2023		2024		2023
Accruing loans and leases past due 30-89 days	$	14,913	$	17,937	$	15,583	$	14,913	$	15,583
Accruing loans and leases past due 90 days or more	$	1,353	$	1,395	$	682	$	1,353	$	682
Nonaccrual loans and leases	$	14,563	$	22,857	$	12,616	$	14,563	$	12,616
Other real estate owned	$	170	$	167	$	90	$	170	$	90
Nonperforming loans and other real estate owned	$	16,086	$	24,419	$	13,388	$	16,086	$	13,388
Total nonperforming assets	$	18,978	$	27,307	$	16,302	$	18,978	$	16,302
Gross charge-offs	$	6,091	$	3,192	$	3,543	$	9,283	$	7,919
Recoveries	$	1,414	$	1,670	$	2,030	$	3,084	$	4,447
Net charge-offs/(recoveries)	$	4,677	$	1,522	$	1,513	$	6,199	$	3,472


Non-GAAP Reconciliations	Three Months Ended June 30,
	2024			2023
($in thousands, except EPS)
Income before Income Taxes	$	13,582		$	19,494
Provision for credit losses		2,966			1,800
Provision for unfunded commitments		(300	)		(100	)
Pre-tax, Pre-provision Income	$	16,248		$	21,194


Non-GAAP Reconciliations	Six Months Ended June 30,
	2024			2023
($ in thousands, except EPS)
Income before Income Taxes	$	26,711		$	39,083
Provision for credit losses		4,766			3,600
Provision for unfunded commitments		(300	)		(100	)
Pre-tax, Pre-provision Income	$	31,177		$	42,583


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

	June 30,			December 31,
	2024			2023
	(unaudited)
ASSETS
Cash and due from banks	$	75,073		$	76,759
Federal funds sold		24,000			282
Securities available-for-sale		1,205,751			1,259,137
Loans:
Commercial		1,782,646			1,817,526
Residential		748,044			695,788
Consumer		666,130			646,758
		3,196,820			3,160,072
(Less) plus:
Net deferred loan costs		7,189			7,749
Allowance for credit losses		(38,334	)		(39,767	)
		3,165,675			3,128,054
Restricted stock		15,378			15,364
Accrued interest receivable		23,733			24,877
Premises and equipment, net		65,750			67,286
Bank-owned life insurance		114,767			114,122
Goodwill		86,985			86,985
Other intangible assets		5,116			5,586
Other real estate owned		170			107
Other assets		108,670			72,587
TOTAL ASSETS	$	4,891,068		$	4,851,146

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing	$	748,495		$	750,335
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		112,679			92,921
Other interest-bearing deposits		3,271,153			3,246,812
		4,132,327			4,090,068
Short-term borrowings		38,211			67,221
FHLB advances		108,575			108,577
Other liabilities		81,285			57,304
TOTAL LIABILITIES		4,360,398			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		2,016			2,014
Additional paid-in capital		144,632			144,152
Retained earnings		673,728			663,726
Accumulated other comprehensive income/(loss)		(134,501	)		(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		530,670			527,976
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,891,068		$	4,851,146


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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2024		2023			2024			2023
						(unaudited)
INTEREST INCOME:
Loans, including related fees	$	51,459	$	46,479		$	101,511		$	91,074
Securities:
Taxable		5,833		6,231			11,764			12,467
Tax-exempt		2,601		2,678			5,204			5,276
Other		878		841			1,695			2,112
TOTAL INTEREST INCOME		60,771		56,229			120,174			110,929
INTEREST EXPENSE:
Deposits		19,694		11,957			37,425			21,484
Short-term borrowings		959		1,294			1,935			2,102
Other borrowings		824		791			2,600			821
TOTAL INTEREST EXPENSE		21,477		14,042			41,960			24,407
NET INTEREST INCOME		39,294		42,187			78,214			86,522
Provision for credit losses		2,966		1,800			4,766			3,600
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		36,328		40,387			73,448			82,922
NON-INTEREST INCOME:
Trust and financial services		1,318		1,185			2,652			2,502
Service charges and fees on deposit accounts		6,730		7,054			13,437			13,872
Other service charges and fees		286		196			509			400
Securities gains (losses), net		—		—			—			—
Interchange income		135		—			314			47
Loan servicing fees		414		264			683			549
Gain on sales of mortgage loans		299		311			475			490
Other		723		1,443			1,266			1,968
TOTAL NON-INTEREST INCOME		9,905		10,453			19,336			19,828
NON-INTEREST EXPENSE:
Salaries and employee benefits		17,380		16,946			34,710			34,104
Occupancy expense		2,201		2,132			4,560			4,731
Equipment expense		4,312		3,525			8,456			6,824
FDIC Expense		501		577			1,163			1,364
Other		8,257		8,166			17,184			16,644
TOTAL NON-INTEREST EXPENSE		32,651		31,346			66,073			63,667
INCOME BEFORE INCOME TAXES		13,582		19,494			26,711			39,083
Provision for income taxes		2,213		3,507			4,418			7,116
NET INCOME		11,369		15,987			22,293			31,967
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		3,535		(15,808	)		(7,561	)		(1,570	)
Change in funded status of post retirement benefits, net of taxes		74		147			147			294
COMPREHENSIVE INCOME (LOSS)	$	14,978	$	326		$	14,879		$	30,691
PER SHARE DATA
Basic and Diluted Earnings per Share	$	0.96	$	1.33		$	1.89		$	2.66
Weighted average number of shares outstanding (in thousands)		11,814		12,022			11,809			12,040

First Financial Corporation Reports Second Quarter Results