First Financial (THFF) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $8.7M, down from $16.3M in Q3 2023, impacted by purchase accounting adjustments and higher credit loss provisions.

• Basic and diluted EPS for Q3 2024 was $0.74, compared to $1.37 in Q3 2023; nine-month EPS was $2.63, down from $4.02.

• Return on average assets and equity declined to 0.64% and 6.39% for Q3 2024, from 1.35% and 13.19% in Q3 2023.

• SimplyBank acquisition completed July 1, 2024, expanding into Southeast Tennessee and Northwest Georgia, with $73.4M cash consideration and $10.3M goodwill recognized.

• Liquidity and capital remain strong, with cash and AFS securities at 24.6% of assets and capital ratios well above regulatory minimums.

Financial highlights

• Net interest income for Q3 2024 rose to $47.2M from $41.2M in Q3 2023; net interest margin increased to 3.78% from 3.74%.

• Non-interest income for Q3 2024 was $11.2M, slightly down from $11.6M.

• Non-interest expense for Q3 2024 increased to $38.6M from $32.3M, including $1.7M in acquisition costs.

• Provision for credit losses for Q3 2024 was $9.4M, up from $1.2M, with $5.5M related to SimplyBank and a previously identified credit.

• Average total loans for Q3 2024: $3.71B, up 17.74% year-over-year, mainly from SimplyBank acquisition.

Outlook and guidance

• Management expects continued uncertainty due to banking sector events, interest rate activity, and recessionary concerns.

• Management expects continued improvement in net interest margin in coming quarters.

• Liquidity and capital positions are considered adequate to meet both short- and long-term needs.