First Financial (THFF) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $11.4 million, down from $16.0 million in Q2 2023; six-month net income was $22.3 million, down from $32.0 million year-over-year.

• Basic/diluted EPS for Q2 2024 was $0.96, compared to $1.33 in Q2 2023; six-month EPS was $1.89, down from $2.66.

• Loan growth continued, with average total loans up 3.22% year-over-year; total deposits increased 1.70% year-over-year.

• Return on average assets was 0.94% and return on average equity was 8.78% for Q2 2024, both lower than prior year.

• Completed acquisition of SimplyBank for $73.4 million in July 2024, expanding into Tennessee.

Financial highlights

• Net interest income for Q2 2024 was $39.3 million, down from $42.2 million in Q2 2023; net interest margin declined to 3.57% from 3.81%.

• Non-interest income for Q2 2024 was $9.9 million, down from $10.5 million in Q2 2023.

• Non-interest expense for Q2 2024 was $32.7 million, up from $31.3 million in Q2 2023, including acquisition-related expenses.

• Provision for credit losses in Q2 2024 was $3.0 million, up from $1.8 million in Q2 2023, mainly due to one previously identified credit.

• Effective income tax rate for the first six months of 2024 was 16.54%, down from 18.21% in 2023.

Outlook and guidance

• Management considers liquidity and capital positions strong, with ratios well above regulatory requirements.

• Management expects continued improvement in net interest margin as cost of funds pressure moderates.

• The impact of the 2023 banking crisis and further effects on 2024 operations remain uncertain.

• No material changes in risk factors from those disclosed in the 2023 Form 10-K.