First Financial Corp. Indiana (THFF, Financial) filed Annual Report for the period ended 2011-12-31.
First Finl-ind has a market cap of $417.7 million; its shares were traded at around $32.19 with a P/E ratio of 11.2 and P/S ratio of 2.7. The dividend yield of First Finl-ind stocks is 3%.
Net income for 2011 was $37.2 million, or $2.83 per share. This represents a 32.6% increase in net income and a 32.2% increase in earnings per share, compared to 2010. Return on assets at December 31, 2011 increased 34.2% to 1.49% compared to 1.11% at December 31, 2010.
The principal source of the Corporations earnings is net interest income, which represents the difference between interest earned on loans and investments and the interest cost associated with deposits and other sources of funding .Net interest income was increased in 2011 to $99.2 million compared to $96.6 million in 2010. Total average interest earning assets remained stable at $2.33 billion in 2011 from $2.34 billion in 2010. The tax-equivalent yield on these assets decreased to 5.23% in 2011 from 5.50% in 2010. Total average interest-bearing liabilities decreased to $1.76 billion in 2011 from $1.84 billion in 2010. The average cost of these interest-bearing liabilities decreased to 0.98% in 2011 from 1.47% in 2010.
Net interest income increased $9.6 million in 2010 compared to 2009 as total average interest-earning assets increased $101.4 million. This increase was primarily the result of the cost of funding declining at a faster pace than the decline in the earnings on earning assets. The provision for loan losses decreased $2.7 million from $11.9 million in 2009 to $9.2 million in 2010. Net non-interest income and expense increased $2.6 million from 2009 to 2010. Non-interest expenses increased $3.8 million while non-interest income increased $1.3 million. The increase in non-interest income resulted primarily from reduced impairment losses.
First Financial Corporations objective continues to be to maintain adequate capital to merit the confidence of its customers and shareholders. To warrant this confidence, the Corporations management maintains a capital position which they believe is sufficient to absorb unforeseen financial shocks without unnecessarily restricting dividends to its shareholders. The Corporations dividend payout ratio for 2011 and 2010 was 33.3% and 43.1%, respectively. The Corporation expects to continue its policy of paying regular cash dividends, subject to future earnings and regulatory restrictions and capital requirements.
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First Finl-ind has a market cap of $417.7 million; its shares were traded at around $32.19 with a P/E ratio of 11.2 and P/S ratio of 2.7. The dividend yield of First Finl-ind stocks is 3%.
Highlight of Business Operations:
Securities valuation and potential impairment. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported separately in accumulated other comprehensive income (loss), net of tax. The Corporation obtains market values from a third party on a monthly basis in order to adjust the securities to fair value. Equity securities that do not have readily determinable fair values are carried at cost. Additionally, all securities are required to be evaluated for other than temporary impairment (OTTI). In determining whether a market value decline is other than temporary, management considers the reason for the decline, the extent of the decline, the duration of the decline and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investments amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings.Net income for 2011 was $37.2 million, or $2.83 per share. This represents a 32.6% increase in net income and a 32.2% increase in earnings per share, compared to 2010. Return on assets at December 31, 2011 increased 34.2% to 1.49% compared to 1.11% at December 31, 2010.
The principal source of the Corporations earnings is net interest income, which represents the difference between interest earned on loans and investments and the interest cost associated with deposits and other sources of funding .Net interest income was increased in 2011 to $99.2 million compared to $96.6 million in 2010. Total average interest earning assets remained stable at $2.33 billion in 2011 from $2.34 billion in 2010. The tax-equivalent yield on these assets decreased to 5.23% in 2011 from 5.50% in 2010. Total average interest-bearing liabilities decreased to $1.76 billion in 2011 from $1.84 billion in 2010. The average cost of these interest-bearing liabilities decreased to 0.98% in 2011 from 1.47% in 2010.
Net interest income increased $9.6 million in 2010 compared to 2009 as total average interest-earning assets increased $101.4 million. This increase was primarily the result of the cost of funding declining at a faster pace than the decline in the earnings on earning assets. The provision for loan losses decreased $2.7 million from $11.9 million in 2009 to $9.2 million in 2010. Net non-interest income and expense increased $2.6 million from 2009 to 2010. Non-interest expenses increased $3.8 million while non-interest income increased $1.3 million. The increase in non-interest income resulted primarily from reduced impairment losses.
First Financial Corporations objective continues to be to maintain adequate capital to merit the confidence of its customers and shareholders. To warrant this confidence, the Corporations management maintains a capital position which they believe is sufficient to absorb unforeseen financial shocks without unnecessarily restricting dividends to its shareholders. The Corporations dividend payout ratio for 2011 and 2010 was 33.3% and 43.1%, respectively. The Corporation expects to continue its policy of paying regular cash dividends, subject to future earnings and regulatory restrictions and capital requirements.
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