First Financial Corp (THFF, Financial) released its earnings report for the third quarter of 2023 on October 24, 2023. The company reported an increase in average total loans for the quarter, reaching $3.15 billion, up from $2.92 billion in the same period in 2022. This represents an increase of $230 million or 7.88%. On a linked quarter basis, average loans increased $49 million or 1.60% from $3.10 billion as of June 30, 2023.
Financial Highlights
Total loans outstanding as of September 30, 2023, were $3.12 billion, an increase of 4.95% from $2.97 billion as of September 30, 2022. The increase was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans. However, on a linked quarter basis, total loans decreased $9.1 million or 0.29% from $3.13 billion as of June 30, 2023.
Shareholder equity at the end of Q3 2023 stood at $470.2 million, compared to $438.6 million in Q3 2022. The Book Value per share was $40.00 as of September 30, 2023, compared to $36.49 as of September 30, 2022, an increase of 9.63%.
Income Statement Analysis
Net interest income for Q3 2023 was $41.2 million, compared to $43.1 million reported for the same period of 2022, a decrease of $2.0 million or 4.53%. The net interest margin for the quarter ended September 30, 2023, was 3.74% compared to the 3.71% reported at September 30, 2022, an increase of 3 basis points or 0.69%.
Non-interest income for the three months ended September 30, 2023, and 2022 was $11.6 million and $12.1 million, respectively. Non-interest expense for the three months ended September 30, 2023, was $32.3 million compared to $31.5 million in 2022.
Performance Analysis
The company's net income for the third quarter of 2023 was $16.285 million, compared to $18.051 million for the same period in 2022. The effective tax rate for 2023 was 17.37% compared to 20.61% for 2022. The decrease in tax expense is due to a non-taxable gain on BOLI claim proceeds and an adjustment to tax credit investments.
Norman L. Lowery, Chairman and Chief Executive Officer, commented on the results,
We are pleased with our third quarter results, in spite of an increasingly challenging environment. Credit quality remains stable and our disciplined approach to expense management is constant. Our liquidity is stable and our balance sheet and capital levels remain strong."
First Financial Corp (THFF, Financial) is the holding company for First Financial Bank N.A., the fifth oldest national bank in the United States, operating 70 banking centers in Illinois, Indiana, Kentucky, and Tennessee.
Explore the complete 8-K earnings release (here) from First Financial Corp for further details.
