FIRST FINANCIAL CORP /IN/ [THFF] Filings

10-Q 1 tmb-20220930x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended September 30, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-16759

FIRST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Indiana	35-1546989
(State or other jurisdiction	(I.R.S. Employer
incorporation or organization)	Identification No.)

One First Financial Plaza, Terre Haute, IN	47807
(Address of principal executive office)	(Zip Code)

(812)	238-6000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.125 per share	THFF	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☑
Non-accelerated filer (Do not check if a smaller reporting company)	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑.

As of November 1, 2022, the registrant had outstanding 12,021,998 shares of common stock, without par value.

Table of Contents

FIRST FINANCIAL CORPORATION

FORM 10-Q

INDEX


	Page No.
PART I. Financial Information

Item 1. Financial Statements:

Consolidated Balance Sheets	3

Consolidated Statements of Income and Comprehensive Income	4

Consolidated Statements of Shareholders’ Equity	5

Consolidated Statements of Cash Flows	7

Notes to Consolidated Financial Statements	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 3. Quantitative and Qualitative Disclosures about Market Risk	32

Item 4. Controls and Procedures	39

PART II. Other Information:

Item 1. Legal Proceedings	40

Item 1A. Risk Factors	40

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40

Item 3. Defaults upon Senior Securities	40

Item 4. Mine Safety Disclosures	40

Item 5. Other Information	40

Item 6. Exhibits	41

Signatures	42

Table of Contents

Part I – Financial Information

Item 1.Financial Statements

FIRST FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share data)


	September 30,		December 31,
	2022		2021
	(unaudited)
ASSETS
Cash and due from banks	$	328,222	$	682,807
Federal funds sold		8,223		308
Securities available-for-sale		1,331,985		1,364,734
Loans:
Commercial		1,717,265		1,674,066
Residential		676,400		664,509
Consumer		570,245		474,026
		2,963,910		2,812,601
(Less) plus:
Net deferred loan (fees)/costs		6,565		3,294
Allowance for credit losses		(39,495)		(48,305)
		2,930,980		2,767,590
Restricted stock		15,372		16,200
Accrued interest receivable		19,128		16,946
Premises and equipment, net		68,113		69,522
Bank-owned life insurance		116,034		116,997
Goodwill		86,985		86,135
Other intangible assets		7,024		8,024
Other real estate owned		214		108
Other assets		97,059		45,728
TOTAL ASSETS	$	5,009,339	$	5,175,099
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	894,348	$	914,933
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		56,596		74,015
Other interest-bearing deposits		3,456,562		3,420,621
		4,407,506		4,409,569
Short-term borrowings		89,321		93,374
Other borrowings		9,593		15,937
Other liabilities		64,293		73,643
TOTAL LIABILITIES		4,570,713		4,592,523
Shareholders’ equity
Common stock, $0.125 stated value per share; Authorized shares-40,000,000 Issued shares-16,114,992 in 2022 and 16,096,313 in 2021 Outstanding shares-12,021,998 in 2022 and 12,629,893 in 2021		2,011		2,009
Additional paid-in capital		142,596		141,979
Retained earnings		607,220		559,139
Accumulated other comprehensive income/(loss)		(167,375)		(2,426)
Less: Treasury shares at cost-4,092,994 in 2022 and 3,466,420 in 2021		(145,826)		(118,125)
TOTAL SHAREHOLDERS’ EQUITY		438,626		582,576
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,009,339	$	5,175,099

See accompanying notes.

Table of Contents

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Dollar amounts in thousands, except per share data)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME:
Loans, including related fees	$	38,021	$	31,937	$	104,683	$	95,760
Securities:
Taxable		7,327		3,627		17,958		10,061
Tax-exempt		2,562		2,234		7,402		6,471
Other		336		347		1,059		1,080
TOTAL INTEREST INCOME		48,246		38,145		131,102		113,372
INTEREST EXPENSE:
Deposits		4,644		1,959		8,793		6,335
Short-term borrowings		418		99		676		291
Other borrowings		80		59		249		177
TOTAL INTEREST EXPENSE		5,142		2,117		9,718		6,803
NET INTEREST INCOME		43,104		36,028		121,384		106,569
Provision for credit losses		1,050		(1,500)		(4,750)		(3,244)
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES		42,054		37,528		126,134		109,813
NON-INTEREST INCOME:
Trust and financial services		1,015		1,156		3,687		3,774
Service charges and fees on deposit accounts		6,965		6,421		20,698		18,031
Other service charges and fees		160		135		488		957
Securities gains (losses), net		—		5		5		111
Interchange income		149		224		418		423
Loan servicing fees		457		344		1,184		1,485
Gain on sales of mortgage loans		440		1,426		1,705		4,268
Other		2,954		1,381		7,963		2,268
TOTAL NON-INTEREST INCOME		12,140		11,092		36,148		31,317
NON-INTEREST EXPENSE:
Salaries and employee benefits		15,943		15,770		48,953		47,478
Occupancy expense		2,525		2,151		7,419		6,302
Equipment expense		3,311		2,177		9,177		7,195
FDIC Expense		556		313		1,526		898
Other		9,169		8,048		26,447		22,221
TOTAL NON-INTEREST EXPENSE		31,504		28,459		93,522		84,094
INCOME BEFORE INCOME TAXES		22,690		20,161		68,760		57,036
Provision for income taxes		4,639		4,063		14,172		11,447
NET INCOME		18,051		16,098		54,588		45,589
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		(41,060)		(2,985)		(165,893)		(12,281)
Change in funded status of post retirement benefits, net of taxes		315		471		944		1,415
COMPREHENSIVE INCOME (LOSS)	$	(22,694)	$	13,584	$	(110,361)	$	34,723
PER SHARE DATA
Basic and Diluted Earnings per Share	$	1.50	$	1.24	$	4.45	$	3.42
Weighted average number of shares outstanding (in thousands)		12,029		13,019		12,270		13,320

See accompanying notes.

Table of Contents

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Three Months Ended

September 30, 2022, and 2021

(Dollar amounts in thousands, except per share data)

(Unaudited)


							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Capital		Earnings		Income/(Loss)		Stock		Total
Balance, July 1, 2021	$	2,008	$	141,240	$	543,595	$	1,412	$	(100,092)	$	588,163
Net income		—		—		16,098		—		—		16,098
Other comprehensive income (loss)		—		—		—		(2,514)		—		(2,514)
Omnibus Equity Incentive Plan		1		216		—		—		—		217
Treasury shares purchased (176,293 shares)		—		—		—		—		(7,029)		(7,029)
Balance, September 30, 2021	$	2,009	$	141,456	$	559,693	$	(1,102)	$	(107,121)	$	594,935

Balance, July 1, 2022	$	2,011	$	142,390	$	589,169	$	(126,630)	$	(145,409)	$	461,531
Net income		—		—		18,051		—		—		18,051
Other comprehensive income (loss)		—		—		—		(40,745)		—		(40,745)
Omnibus Equity Incentive Plan		—		206		—		—		—		206
Treasury shares purchased (9,125 shares)		—		—		—		—		(417)		(417)
Cash dividends, $0 per share		—		—		—		—		—		—
Balance, September 30, 2022	$	2,011	$	142,596	$	607,220	$	(167,375)	$	(145,826)	$	438,626

See accompanying notes.

Table of Contents

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Nine Months Ended

September 30, 2022, and 2021

(Dollar amounts in thousands, except per share data)

(Unaudited)


							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Capital		Earnings		Income/(Loss)		Stock		Total
Balance, January 1, 2021	$	2,007	$	140,820	$	521,103	$	9,764	$	(76,702)	$	596,992
Net income		—		—		45,589		—		—		45,589
Other comprehensive income (loss)		—		—		—		(10,866)		—		(10,866)
Omnibus Equity Incentive Plan		2		636		—		—		—		638
Treasury shares purchased (707,734 shares)		—		—		—		—		(30,419)		(30,419)
Cash dividends, $.53 per share		—		—		(6,999)		—		—		(6,999)
Balance, September 30, 2021	$	2,009	$	141,456	$	559,693	$	(1,102)	$	(107,121)	$	594,935

Balance, January 1, 2022	$	2,009	$	141,979	$	559,139	$	(2,426)	$	(118,125)	$	582,576
Net income		—		—		54,588		—		—		54,588
Other comprehensive income (loss)		—		—		—		(164,949)		—		(164,949)
Omnibus Equity Incentive Plan		2		617		—		—		—		619
Treasury shares purchased (626,574 shares)		—		—		—		—		(27,701)		(27,701)
Cash dividends, $.54 per share		—		—		(6,507)		—		—		(6,507)
Balance, September 30, 2022	$	2,011	$	142,596	$	607,220	$	(167,375)	$	(145,826)	$	438,626

Table of Contents

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands, except per share data)


	Nine Months Ended
	September 30,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	54,588	$	45,589
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments		5,174		6,207
Provision for credit losses		(4,750)		(3,244)
Securities (gains) losses		(5)		(111)
Gain on sales of mortgage loans		(1,705)		(4,268)
(Gain) Loss on sale of other real estate		26		10
Restricted stock compensation		619		638
Depreciation and amortization		4,615		4,670
Other, net		(6,266)		(6,583)
NET CASH FROM OPERATING ACTIVITIES		52,296		42,908
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities available-for-sale		—		9,369
Calls, maturities and principal reductions on securities available-for-sale

FIRST FINANCIAL CORP /IN/ [THFF] Filings
10-Q	[2022-11-02]
10-Q	[2022-08-03]
10-Q	[2022-05-04]
10-K	[2022-03-09]
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-Q	[2021-05-05]
10-K	[2021-03-11]
10-Q	[2020-11-04]
10-Q	[2020-08-06]
10-Q	[2020-05-07]
10-K	[2020-03-06]
10-Q	[2019-11-07]
10-Q	[2019-08-07]
10-Q	[2019-05-08]
10-K	[2019-03-06]
10-Q	[2018-11-07]
10-Q	[2018-08-08]
10-Q	[2018-05-02]
10-K	[2018-03-07]
10-Q	[2017-11-08]
10-Q	[2017-08-02]
10-Q	[2017-05-05]
10-K	[2017-03-09]
10-Q	[2016-11-04]
10-Q	[2016-08-03]
10-Q	[2016-05-04]
10-K	[2016-03-09]
10-Q	[2015-11-05]
10-Q	[2015-08-05]
10-Q	[2015-05-08]
10-K	[2015-03-06]
10-Q	[2014-11-05]
10-Q	[2014-08-07]
10-Q	[2014-05-09]
10-K	[2014-03-14]
10-Q	[2013-11-06]
10-Q	[2013-08-08]
10-Q	[2013-05-10]
10-K	[2013-03-15]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-03-15]