TERRE HAUTE, IN--(Marketwire - April 29, 2009) - First Financial Corporation (
NASDAQ:
THFF)
today announced the results of first-quarter performance. Total loans
increased by $59 million or 4.14% over the same period in 2008.
Commercial, financial and agriculture lending increased by $27.3 million,
5.8% over the same period in 2008, while consumer loans increased by $40
million or 14.2%. This increase was funded primarily by the reduction of
non-earning assets, cash and due from banks and a decrease in the amount of
excess funds sold daily to correspondents.
Total deposits at March 31, 2009 of $1.581 billion were $11.3 million less
than at the same period in 2008 due to the daily fluctuation in demand
deposits. Average deposits for the quarter were $15 million higher than in
the same quarter of 2008.
Net interest income continues to be a source of strength for the
Corporation as it increased by $1.5 million to $20.5 million in 2009 from
$19 million in 2008. The net interest margin increased by 18 basis points
to 4.03%
The Corporation increased the quarterly provision for loan and lease losses
by $905 thousand when compared to the same period of 2008 as the recession
continues to impact our customer base. Although there were no significant
changes in classified credits during the quarter, management believes that
the continued economic stress placed on borrowers warrants additional
provisions for loan losses and a higher allowance for loan losses.
Non-interest income was $3.9 million less than the same period of 2008 and
is mostly the result of the Corporation choosing to recognize losses
related to other-than-temporary impairment on two collateralized debt
obligations (CDOs). The companies whose securities comprise these CDOs
continue to be negatively affected by the economic downturn. The
Corporation did not choose early adoption of the Financial Accounting
Standards Board's revised pronouncements and staff positions because of the
confusing income statement presentation which would have reflected losses
on the above mentioned CDOs in excess of their cost.
Net income of $4.5 million is 34.8% less than that reported in the same
period of 2008 as the additional provision for loan losses and the write
down on CDOs exceeded the increases in net interest income. Although we are
seeing signs of an improving economy, the Corporation believes that a
conservative approach to loss recognition is appropriate. Recovery of
recognized losses is expected should the economic cycle improve; however,
there can be no assurance that such recoveries, if any, will occur or, if
such recoveries occur, any assurance as to the timing of such recoveries.
First Financial Corporation believes that with a strong capital base which
increased during the first quarter by $2.7 million, it is well positioned
to weather the economic downturn.
First Financial Corporation is the holding company for First Financial Bank
NA in Indiana and Illinois, The Morris Plan Company of Terre Haute and
Forrest Sherer Inc. in
Indiana.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements. Forward-looking
statements provide current expectations or forecasts of future events and
are not guarantees of future performance, nor should they be relied upon as
representing management's views as of any subsequent date. The
forward-looking statements are based on management's expectations and are
subject to a number of risks and uncertainties. Although management
believes that the expectations reflected in such forward-looking statements
are reasonable, actual results may differ materially from those expressed
or implied in such statements. Risks and uncertainties that could cause
actual results to differ materially include, without limitation, the
Corporation's ability to effectively execute its business plans; changes in
general economic and financial market conditions; changes in interest
rates; changes in the competitive environment; continuing consolidation in
the financial services industry; new litigation or changes in existing
litigation; losses, customer bankruptcy, claims and assessments; changes in
banking regulations or other regulatory or legislative requirements
affecting the Corporation's business; and changes in accounting policies or
procedures as may be required by the Financial Accounting Standards Board
or other regulatory agencies. Additional information concerning factors
that could cause actual results to differ materially from those expressed
or implied in the forward-looking statements is available in the
Corporation's Annual Report on Form 10-K for the year ended December 31,
2007, and subsequent filings with the United States Securities and Exchange
Commission (SEC). Copies of these filings are available at no cost on the
SEC's Web site at
www.sec.gov or on the Corporation's Web site
at
www.first-online.com. Management may elect to update forward-looking
statements at some future point; however, it specifically disclaims any
obligation to do so.
First Financial Corporation
For the Quarter Ending March 31, 2009
(Dollar amounts in thousands except per share data)
03/31/09 03/31/08 Change % Change
Quarter to Date
Information:
Net Income $ 4,530 $ 6,950 $ (2,420) -34.82%
Earnings Per Average
Share $ 0.35 $ 0.53 $ (0.18) -33.96%
Return on Assets 0.79% 1.23% -0.44% -35.77%
Return on Equity 6.17% 9.62% -3.45% -35.86%
Net Interest Margin 4.03% 3.85% 0.18% 4.68%
Net Interest Income $ 20,463 $ 18,956 $ 1,507 7.95%
Non-Interest Income $ 4,746 $ 8,649 $ (3,903) -45.13%
Non-Interest Expense $ 16,697 $ 16,424 $ 273 1.66%
Loss Provision $ 2,830 $ 1,925 $ 905 47.01%
Net Charge Offs $ 2,081 $ 1,833 $ 248 13.53%
Efficiency Ratio 62.89% 51.27% 11.62% 22.66%
Balance Sheet:
Assets $ 2,293,847 $ 2,298,834 $ (4,987) -0.22%
Deposits $ 1,581,323 $ 1,592,650 $ (11,327) -0.71%
Loans $ 1,484,804 $ 1,425,716 $ 59,088 4.14%
Shareholders' Equity $ 295,917 $ 293,228 $ 2,689 0.92%
Book Value Per Share $ 22.56 $ 22.38 $ 0.18 0.81%
Average Assets 2,301,617 2,268,177 33,440 1.47%
Contact Information: For more information contact:
Michael A. Carty
(812) 238-6264