UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 29, 2013
First Financial Corporation
(Exact name of registrant as specified in its charter)
Indiana (State or other Jurisdiction of Incorporation) |
000-16759 (Commission File Number) |
35-1546989 (IRS Employer Identification No.) |
P. O. Box 540, Terre Haute, Indiana (Address of Principal Executive Offices) |
47808 (Zip Code) |
Registrant's telephone number, including area code 812-238-6334
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
On July 29, 2013, the Registrant issued a press release reporting its financial results for the six and three months ended June 30, 2013. A copy of the press release is being furnished as an exhibit to this report and is incorporated by reference into this item 12.
The foregoing information, including the information contained in the press release, is being furnished pursuant to this Item 12 and shall not be deemed to be “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed to be incorporated by reference into any of the Registrant’s filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.
The exhibit to this report is as follows:
Exhibit No. | Description | ||
99.1 | Press Release, dated July 29, 2013 issued by First Financial Corporation |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
First Financial Corporation | ||
Dated July 29, 2013 | ||
/s/Rodger A. McHargue | ||
Rodger A. McHargue | ||
Secretary/Treasurer and Chief Financial Officer |
Exhibit Index
Exhibit Number | ||
99.1 | Press Release, July 29, 2013 issued by First Financial Corporation |
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News Release |
FIRST FINANCIAL CORPORATION
One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000
For more information contact: | |
July 29, 2013 | Rodger A. McHargue at (812) 238-6334 |
First Financial Corporation reports 2nd Quarter 2013 results
TERRE HAUTE, INDIANA – First Financial Corporation (NASDAQ:THFF) today announced results for the six and three months ended June 30, 2013. Net income of $14.1 and $6.4 million for the six and three months, respectively, compares to $16.1 and $8.7 million for the same periods of 2012. Return on assets for the six and three months ended June 30, 2013 was 0.96% and 0.88%, respectively, compared to 1.11% and 1.20% for the six and three months ended June 30, 2012.
Net interest income for the second quarter of 2013 was $25.7 million, compared to the $27.7 million reported for the same period of 2012. Net interest income for the six months ended June 30, 2013 was $51.9 million compared to the $54.8 million reported for the same period of 2012. The net interest margin at June 30, 2013 was 4.09%, compared to 4.34% reported at June 30, 2012.
The provision for loan losses for the three months ended June 30, 2013 was $3.0 million compared to the $1.8 million provision for the second quarter of 2012. For the six months ended June 30, 2013 and 2012, the provision expense was $6.0 and $4.7 million, respectively.
Non-interest income for the three months ended June 30, 2013 and 2012 was $9.7 and $9.8 million, respectively. A decrease in securities gains in the second quarter of 2013 compared to 2012 offset increases in other components of non-interest income. For the six months ended June 30, 2013, non-interest income of $19.5 million slightly increased over the $19.3 million for the same period of 2012.
Non-interest expense for the three months ended June 30, 2013 was $23.4 million compared to $23.1 million in 2012. For the six months ended June 30, 2012, non-interest expense was $45.6 million compared to $46.5 for the six months ended June 30, 2012. Efficiencies realized from the consolidation of the operations of the former Freestar Bank acquired on December 30, 2011 contributed to the reduced non-interest expense in the first half of 2013.
Total loans at June 30, 2013 of $1.80 billion compare to the $1.88 billion reported the same time a year ago. Deposits increased by $26.3 million to $2.28 billion.
Book value per share was $27.68, a 2.3% increase from the $27.07 at June 30, 2012. Shareholders’ equity increased 2.8% to $368.4 million from $358.3 million on June 30, 2012. During the second quarter of 2013 the Corporation declared a $0.48 per share dividend. This marked the 25th consecutive year of dividend increases to shareholders.
First Financial Corporation 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.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
June 30, | December 31, | |||||||
2013 | 2012 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ | 73,720 | $ | 87,230 | ||||
Federal funds sold | 10,215 | 20,800 | ||||||
Securities available-for-sale | 837,047 | 691,000 | ||||||
Loans: | ||||||||
Commercial | 1,046,681 | 1,088,144 | ||||||
Residential | 486,016 | 496,237 | ||||||
Consumer | 267,632 | 268,507 | ||||||
1,800,329 | 1,852,888 | |||||||
Less: | ||||||||
Unearned Income | (1,010 | ) | (952 | ) | ||||
Allowance for loan losses | (22,133 | ) | (21,958 | ) | ||||
1,777,186 | 1,829,978 | |||||||
Restricted Stock | 21,050 | 21,292 | ||||||
Accrued interest receivable | 11,046 | 12,024 | ||||||
Premises and equipment, net | 46,468 | 47,308 | ||||||
Bank-owned life insurance | 78,267 | 77,295 | ||||||
Goodwill | 37,612 | 37,612 | ||||||
Other intangible assets | 3,308 | 3,893 | ||||||
Other real estate owned | 9,336 | 7,722 | ||||||
FDIC Indemnification Asset | 1,515 | 2,632 | ||||||
Other assets | 53,747 | 56,622 | ||||||
TOTAL ASSETS | $ | 2,960,517 | $ | 2,895,408 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Non-interest-bearing | $ | 449,231 | $ | 465,954 | ||||
Interest-bearing: | ||||||||
Certificates of deposit of $100 or more | 211,529 | 213,610 | ||||||
Other interest-bearing deposits | 1,618,745 | 1,596,570 | ||||||
2,279,505 | 2,276,134 | |||||||
Short-term borrowings | 29,194 | 40,551 | ||||||
Other borrowings | 209,534 | 119,705 | ||||||
Other liabilities | 73,882 | 86,896 | ||||||
TOTAL LIABILITIES | 2,592,115 | 2,523,286 | ||||||
Shareholders’ equity | ||||||||
Common stock, $.125 stated value per share; | ||||||||
Authorized shares-40,000,000 | ||||||||
Issued shares-14,516,113 in 2013 and 14,490,609 in 2012 | ||||||||
Outstanding shares-13,307,498 in 2013 and 13,287,348 in 2012 | 1,809 | 1,808 | ||||||
Additional paid-in capital | 70,354 | 69,989 | ||||||
Retained earnings | 346,092 | 338,342 | ||||||
Accumulated other comprehensive income (loss) | (19,146 | ) | (7,472 | ) | ||||
Less: Treasury shares at cost-1,208,615 in 2013 and 1,203,261 in 2012 | (30,707 | ) | (30,545 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 368,402 | 372,122 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,960,517 | $ | 2,895,408 |
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, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
INTEREST INCOME: | ||||||||||||||||
Loans, including related fees | $ | 22,576 | $ | 25,226 | $ | 46,030 | $ | 50,424 | ||||||||
Securities: | ||||||||||||||||
Taxable | 3,479 | 3,508 | 6,694 | 7,031 | ||||||||||||
Tax-exempt | 1,761 | 1,810 | 3,531 | 3,615 | ||||||||||||
Other | 489 | 590 | 992 | 1,213 | ||||||||||||
TOTAL INTEREST INCOME | 28,305 | 31,134 | 57,247 | 62,283 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Deposits | 1,534 | 2,169 | 3,276 | 4,833 | ||||||||||||
Short-term borrowings | 19 | 37 | 39 | 83 | ||||||||||||
Other borrowings | 1,014 | 1,266 | 2,021 | 2,540 | ||||||||||||
TOTAL INTEREST EXPENSE | 2,567 | 3,472 | 5,336 | 7,456 | ||||||||||||
NET INTEREST INCOME | 25,738 | 27,662 | 51,911 | 54,827 | ||||||||||||
Provision for loan losses | 2,960 | 1,789 | 5,981 | 4,745 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION | ||||||||||||||||
FOR LOAN LOSSES | 22,778 | 25,873 | 45,930 | 50,082 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Trust and financial services | 1,403 | 1,439 | 2,929 | 2,919 | ||||||||||||
Service charges and fees on deposit accounts | 2,394 | 2,402 | 4,648 | 4,606 | ||||||||||||
Other service charges and fees | 2,726 | 2,276 | 5,226 | 4,731 | ||||||||||||
Securities gains/(losses), net | 3 | 664 | 7 | 660 | ||||||||||||
Total impairment losses | - | (11 | ) | - | (11 | ) | ||||||||||
Loss recognized in other comprehensive loss | ||||||||||||||||
Net impairment loss recognized in earnings | - | (11 | ) | - | (11 | ) | ||||||||||
Insurance commissions | 1,941 | 1,799 | 3,904 | 3,690 | ||||||||||||
Gain on sales of mortgage loans | 943 | 792 | 1,906 | 1,717 | ||||||||||||
Other | 253 | 396 | 920 | 956 | ||||||||||||
TOTAL NON-INTEREST INCOME | 9,663 | 9,757 | 19,540 | 19,268 | ||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||
Salaries and employee benefits | 13,713 | 13,891 | 27,309 | 28,310 | ||||||||||||
Occupancy expense | 1,576 | 1,488 | 3,098 | 2,905 | ||||||||||||
Equipment expense | 1,537 | 1,399 | 3,038 | 2,681 | ||||||||||||
FDIC Expense | 502 | 527 | 1,059 | 955 | ||||||||||||
Other | 6,055 | 5,797 | 11,078 | 11,671 | ||||||||||||
TOTAL NON-INTEREST EXPENSE | 23,383 | 23,102 | 45,582 | 46,522 | ||||||||||||
INCOME BEFORE INCOME TAXES | 9,058 | 12,528 | 19,888 | 22,828 | ||||||||||||
Provision for income taxes | 2,612 | 3,823 | 5,749 | 6,680 | ||||||||||||
NET INCOME | 6,446 | 8,705 | 14,139 | 16,148 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Change in unrealized gains/losses on securities, net of reclassifications | (18,094 | ) | 570 | (20,872 | ) | 640 | ||||||||||
Tax effect | 7,535 | (228 | ) | 8,646 | (256 | ) | ||||||||||
(10,559 | ) | 342 | (12,226 | ) | 384 | |||||||||||
Change in funded status of post retirement benefits | 563 | 670 | 920 | 1,287 | ||||||||||||
Tax effect | (225 | ) | (268 | ) | (368 | ) | (515 | ) | ||||||||
338 | 402 | 552 | 772 | |||||||||||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (10,221 | ) | 744 | (11,674 | ) | 1,156 | ||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (3,775 | ) | $ | 9,449 | $ | 2,465 | $ | 17,304 | |||||||
PER SHARE DATA | ||||||||||||||||
Basic and Diluted Earnings per Share | 0.48 | 0.66 | 1.06 | 1.22 | ||||||||||||
Dividends per Share | 0.48 | 0.47 | 0.48 | 0.47 | ||||||||||||
Weighted average number of shares outstanding (in thousands) | 13,307 | 13,238 | 13,304 | 13,230 |
Key Ratios | For the six months ended | |||||||
June 30, | June 30, | |||||||
2013 | 2012 | |||||||
Return on average assets | 0.96 | % | 1.11 | % | ||||
Return on average common shareholder's equity | 7.49 | % | 8.96 | % | ||||
Average common shareholder's equity to average assets | 12.86 | % | 12.40 | % | ||||
End of period tangible common equity to tangible assets | 11.19 | % | 11.09 | % | ||||
Book value per share | $ | 27.68 | $ | 27.07 | ||||
Tangible book value per share | $ | 24.54 | $ | 23.88 | ||||
Risk-based capital - Tier 1 | 15.90 | % | 14.45 | % | ||||
Risk-based capital - Total | 16.92 | % | 15.35 | % | ||||
Net interest margin | 4.09 | % | 4.34 | % | ||||
Efficiency Ratio | 61.37 | % | 60.32 | % | ||||
Net charge-offs to average loans and leases | 0.53 | % | 0.51 | % | ||||
Loan and lease loss reserve to loans and leases | 1.23 | % | 1.07 | % | ||||
Nonperforming assets to loans and leases | 1.66 | % | 2.76 | % |
Asset Quality | For the six months ended | |||||||
June 30, | June 30, | |||||||
2013 | 2012 | |||||||
Accruing loans and leases past due 90 days or more | $ | 980 | $ | 7,995 | ||||
Nonaccrual loans and leases | 27,554 | 36,066 | ||||||
Other real estate owned | 9,336 | 7,722 | ||||||
Total nonperforming assets | $ | 37,870 | $ | 51,783 |
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