First Financial Corporation (NASDAQ: THFF) today announced results for the fourth quarter of 2015 and the year ended December 31, 2015. Net income for the three months ending December 31, 2015 was $7.1 million compared to $9.2 million for the same period of 2014. The variance in income was, in part, driven by higher pension expense partially due to increased benefit plan cost from the use of a lower discount rate and the use of the updated mortality tables. Diluted net income per common share for the three month period ended December 31, 2015 was $0.56 compared to $0.71 for the comparable period of 2014.

The Corporation further reported net income of $30.2 million for the twelve months ended December 31, 2015 versus $33.8 million for the comparable period of 2014. The full year variance was also impacted by the pension expense discussed previously. Diluted net income per common share reported was $2.35 for the twelve months ended December 31, 2015 versus $2.55 for the comparable period of 2014. Return on assets for the twelve months ended December 31, 2015 was 1.01% compared to 1.12% for the twelve months ended December 31, 2014.

Book value per share was $32.21 at December 31, 2015, a 5.75% increase from the $30.46 at December 31, 2014. Shareholders' equity increased $16.1 million or 4.08% to $410.3 million from $394.2 million on December 31, 2014.

During 2015 the Corporation completed the announced stock repurchase plan to acquire 5% of the Corporation's outstanding common stock. Total shares repurchased under the plan were 667,700 valued at $21.6 million.

Average total loans for the fourth quarter of 2015 were $1.75 billion versus $1.80 billion for the comparable period in 2014 Total loans outstanding decreased $19.0 million from $1.78 billion as of December 31, 2014 to $1.76 billion as of December 31, 2015. On a linked quarter basis, average total loans decreased $19.7 million from $1.77 billion for the quarter ending September 30, 2015.

Average total deposits for the quarter ended December 31, 2015 were $2.44 billion versus $2.47 billion as of December 31, 2014. Non-interest bearing deposits, however, increased 4.87% while interest earning deposits decreased 1.48%. Higher cost time deposits decreased $95.6 million during 2015.

The company's tangible common equity to tangible asset ratio was 12.51% at December 31, 2015, compared to 11.86% at December 31, 2014, a 5.48% increase.

Net interest income for the fourth quarter of 2015 was $26.0 million compared to $26.9 million reported for the same period of 2014. The net interest margin for the quarter ended December 31, 2015 was 4.04% compared to 3.99% reported at December 31, 2014.

Asset quality remains strong with nonperforming loans and Oreo decreasing 16.3% to $28.9 million as of December 31, 2015 versus $34.5 million as of December 31, 2014. The ratio of nonperforming loans to total loans and leases also decreased to 1.64% as of December 31, 2015 versus 1.94% as of December 31, 2014.

The provision for loan losses for the three months ended December 31, 2015 was $1.1 million compared to the $2.0 million provision for the fourth quarter of 2014. Net charge-offs were $1.0 million for the fourth quarter of 2015 compared to $618 thousand in the same period of 2014. The Corporation's allowance for loan losses as of December 31, 2015 was $19.9 million compared to $18.8 million as of December 31, 2014. The allowance for loan losses as a percent of total loans was 1.13% as of December 31, 2015 compared to 1.06% as of December 31, 2014.

Non-interest income for the three months ended December 31, 2015 was $9.4 compared to $10.6 million in 2014. Non-interest income for the years ended December 31, 2015 and 2014 was $39.2 and $40.8 million, respectively. Increased income from interchange income and sale of mortgages effectively offset the reduced investment service income and income from the Corporation's insurance agency for 2015.

Non-interest expense for the three months ended December 31, 2015 increased $1.8 million to $24.9 million compared to $23.1 million in 2014. On a linked quarter basis, non-interest expense increased $791 thousand from $24.2 million for the quarter ended September 30, 2015. On a year-over-year basis, employee benefits increased $4.3 million due to the lower discount rate and the use of the updated mortality table previously discussed. The pension plan was frozen for the majority of employees as of December 31, 2012. Occupancy expenses decreased $240 thousand and equipment expense decreased $278 thousand for the year ended 2015. The Corporation's efficiency ratio was 67.51% for the quarter ending December 31, 2015 versus 59.11% for the same period in 2014.

First Financial Corporation is the holding company for First Financial Bank N.A. in Indiana and Illinois, The Morris Plan Company of Terre Haute and Forrest Sherer Inc. in Indiana.