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The company’s revenue for the quarter was $129.62 million, narrowly missing the consensus estimate of $129.72 million and marking a slight improvement from the $96.29 million reported in the first quarter of the previous year.
The bank’s net interest income saw an uptick, rising to $100.24 million from $96.29 million year-over-year (YoY), driven by organic loan and deposit growth. First Financial also reported a decrease in the provision for credit losses to $808 thousand, down from $2.78 million in the same period last year.
Trust fees contributed positively as well, increasing to $11.38 million compared to $9.85 million in the first quarter of 2023.
Chairman, President, and CEO F. Scott Dueser highlighted the growth in net interest income and the strategic use of cash flow from maturing bond portfolios to fund loan growth and enhance liquidity. Dueser expressed confidence in the company’s financial stability, citing strong regulatory capital ratios and a diversified deposit base.
Despite these positive factors, the bank faced challenges, including an increase in salary and employee benefits expenses, which rose by $5.22 million YoY. This increase was primarily due to merit-based and market-driven pay raises, higher profit-sharing accruals, and increased medical insurance and officer incentive accruals.
Noninterest income for the quarter was $29.38 million, a slight improvement from the $28.01 million reported in the first quarter of 2023. The bank saw increases in service charges on deposits and mortgage income, with over 2,000 net new accounts opened during the quarter and a small increase in mortgage loans originated.
Total assets as of March 31, 2024, stood at $13.19 billion, a marginal increase from $13.01 billion at the same time last year. Loans totaled $7.23 billion, up from $6.58 billion YoY, while deposits grew to $11.29 billion from $10.94 billion.
The efficiency ratio for the first quarter of 2024 deteriorated to 48.37 percent from 44.93 percent YoY, reflecting higher noninterest expenses relative to net income.
The company did not provide specific guidance for the upcoming quarter or fiscal year in the press release, nor was there an indication of the stock’s market movement or the primary driver behind any potential changes in stock price following the earnings release.
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