First Financial Corp (Indiana) (NASDAQ:THFF) Q2 2019 Earnings Conference Call - Final Transcript

Jul 19, 2019 • 08:30 am ET


First Financial Corp (Indiana) (NASDAQ:THFF) Q2 2019 Earnings Conference Call - Final Transcript


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Archie M. Brown

Our outlook of 3.70% to 3.75%, excluding purchase accounting assumes the fed cuts rates by 25 basis points later this month. As always, the net interest margin can fluctuate depending on a variety of factors, and we actually work to mitigate downward rate pressures on the asset side through disciplined deposit pricing management.

As stated earlier, credit quality is stable with a normalized provision covering charge offs and accounting for loan growth. However, individual loans can have a transitory impact from time-to-time. We expect fee income to decline from our record levels in the second quarter and be in the range of $27 million to $29 million over the next quarter as derivative fees moderate and interchange income declines after Durbin begins.

With respect to expenses, we continuously focus on efficiency, even while making strategic investments to support the long-term success of our business. We expect expenses in the range of $77 million to $79 million and anticipate an efficiency ratio in the 51% to 53% range for the next quarter. Our strong capital levels and earnings consistently provide flexibility for capital deployment strategies. Post Bannockburn closing, we will evaluate our capital return strategies, including share buybacks.

Overall, the Company remains well positioned to grow organically and to take advantage of our strong capital position by deploying through other growth opportunities that meet our objectives. This concludes the prepared comments for the call. Ian, we'll now open up the call for questions.