On July 23, 2024, First Financial Corp (THFF, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. First Financial Corp operates as a financial holding company, providing a wide range of financial services in the United States, including commercial, mortgage, and consumer lending, lease financing, trust account services, depositor services, and insurance services through its subsidiaries.
Performance Overview
First Financial Corp (THFF, Financial) reported earnings per share (EPS) of $0.96 for Q2 2024, matching the analyst estimate of $0.96. The company also reported revenue of $50.67 million, which was in line with the estimated $50.67 million. Despite these matches, the company experienced notable loan growth and an expansion in net interest margin.
Key Financial Achievements
Average total loans for the second quarter of 2024 were $3.20 billion, up from $3.10 billion in the same period of 2023, marking a 3.22% increase. Total loans outstanding as of June 30, 2024, were $3.20 billion, compared to $3.13 billion as of June 30, 2023, driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.
Norman D. Lowery, President and Chief Executive Officer, commented, "We are pleased with our second quarter results, as we experienced another quarter of loan growth. We also saw our net interest margin expand during the quarter as cost of funds pressure moderated. We expect continued improvement in coming quarters."
Income Statement Highlights
Net interest income for Q2 2024 was $39.3 million, a decrease of 6.86% from $42.2 million in Q2 2023. This decline was primarily due to higher interest expenses, which increased by $7.4 million year-over-year. The net interest margin for the quarter was 3.57%, down from 3.81% in the same period last year but up 4 basis points from the previous quarter.
Balance Sheet and Cash Flow
Shareholders' equity at June 30, 2024, was $530.7 million, up from $496.9 million on June 30, 2023. The company repurchased 228,457 shares of its common stock over the past twelve months. Total deposits were $4.13 billion as of June 30, 2024, compared to $4.06 billion as of June 30, 2023, a 1.70% increase.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Interest Income | $39.3 million | $42.2 million |
| Net Interest Margin | 3.57% | 3.81% |
| Total Loans Outstanding | $3.20 billion | $3.13 billion |
| Total Deposits | $4.13 billion | $4.06 billion |
| Shareholders' Equity | $530.7 million | $496.9 million |
Challenges and Risks
Nonperforming loans as of June 30, 2024, were $15.9 million, up from $13.3 million as of June 30, 2023. The provision for credit losses for Q2 2024 was $3.0 million, compared to $1.8 million in Q2 2023, reflecting further deterioration in collateral values. Net charge-offs were $4.7 million in Q2 2024, compared to $1.5 million in the same period of 2023.
Conclusion
While First Financial Corp (THFF, Financial) faced challenges with rising interest expenses and increased provisions for credit losses, the company demonstrated resilience through loan growth and an expanding net interest margin. These factors are crucial for the company's long-term stability and growth in the competitive banking industry.
Explore the complete 8-K earnings release (here) from First Financial Corp for further details.
