News From Terre Haute, Indiana

November 4, 2012

First Financial reports third-quarter results


Special to the Tribune-Star

TERRE HAUTE — First Financial Corp. announced results for the nine and three months ending Sept. 30. Net income of $24.2 and $8.1 million for the nine and three months, respectively, compares to $27 and $9.8 million for the same periods of 2011.

Return on assets for the nine and three months ending Sept. 30 was 1.12 percent and 1.16 percent, respectively, compared to 1.44 percent and 1.57 percent for the nine and three months ending Sept. 30, 2011.

Results for the first nine months of 2012 include income and expenses associated with the purchase of Freestar Bank on Dec. 30, 2011, and were not reflected in the results for the first nine months of 2011.

Net interest income for the third quarter of 2012 was $27.4 million, an increase of 10 percent over the $24.9 million reported for the same period of 2011. Net interest income for the nine months ending Sept. 30 was $82.2 million compared to the $74.8 million reported for the same period of 2011, an increase of $7.4 million. The net interest margin at Sept. 30 was 4.41 percent, compared to the 4.52 percent reported at Sept. 30, 2011.

The provision for loan losses for the three months ending Sept. 30 was $2.6 million compared to the $1.4 million provision for the third quarter of 2011. For the nine months ending Sept. 30, 2012 and 2011, the provision expense was $7.3 and $3.9 million, respectively.  

Non-interest income for the three months ending Sept. 30, 2012 and 2011 was $9.7 and $8.9 million, respectively, an 8.7 percent increase. Gains from the sale of mortgage loans comprised $0.9 million of the increase. For the nine months ending Sept. 30, non-interest income increased $3.9 million to $29 million from the $25.1 million reported for the same period of 2011.

The non-interest expense for the three months ending Sept. 30 was $23.0 million compared to $18.6 million in 2011. For the nine months ending Sept. 30, the non-interest expense was $69.5 million compared to $56.9 for the nine months ending Sept. 30, 2011.

The 2012 non-interest expense contains salary, benefits and one-time expenses related to the acquisition of Freestar Bank. In addition, costs related to the opening of four banking centers by First Financial Bank during the quarter resulted in expenses that did not exist during the same quarter of 2011.

Total loans at Sept. 30 were $1.86 billion compared to the $1.66 billion reported during the same period a year ago. Deposits increased by $332.7 million to $2.26 billion. These increases were primarily driven by the Freestar Bank acquisition.  

Book value per share was $27.86, a 2.77 percent increase from the $27.11 at Sept. 30, 2011. Shareholders’ equity increased 3.42 percent to $368.8 million from $356.6 million on Sept. 30, 2011.

First Financial Corp. is the holding company for First Financial Bank N.A. in Indiana and Illinois, The Morris Plan Company of Terre Haute and Forrest Sherer Inc. in Indiana.