TERRE HAUTE, IN--(Marketwire - January 28, 2010) - First Financial Corporation (
NASDAQ:
THFF)
Chairman Donald E. Smith today announced new milestones achieved by the
Terre Haute-based Corporation. For the first time in its history total
assets exceeded $2.5 billion and total deposits exceeded $1.7 billion at
December 31, 2009. This growth represents a 9.3% increase in assets and a
14.4% increase in deposits for the year. Although these increases were
substantially due to the recent acquisition of a bank in Danville,
Illinois, Smith indicated that all of the Corporation's markets experienced
significant growth during the past year. "We believe our strong financial
condition, as recognized by both national and international bank rating
companies, has allowed us to become a 'safe haven' for our customers," he
said.
2009 was another good year for earnings. Net income for the year of $22.7
million was lower than the $24.7 million reported last year, primarily due
to a $3 million increase in the cost of deposit insurance and a $4 million
increase in loan loss provision as the Corporation prepares for possible
future losses of a prolonged recession.
Net interest income of almost $87 million increased 6.8% over the $81.4
million reported in 2008 as the net interest margin increased by seven
basis points from the prior year. The net interest margin of 4.13% has been
a source of strength in this difficult economy.
Net income for the fourth quarter of $5.8 million was $1.3 million less
than the $7.1 million reported in 2008. Fourth quarter earnings declined as
a $1.6 million, or 7.7% increase in net interest income was offset by
increased loan loss provisioning and non-interest expenses, including
increased FDIC insurance assessments. During the fourth quarter First
Financial Bank sold its portfolio of credit card loans, realizing a gain of
$2.5 million before taxes that was offset by the net loss recorded for
other-than-temporarily-impaired securities of $2.9 million before tax. This
loss on securities is a continuation of declines in expected cash flows on
a limited number of collateralized debt obligations for which repayment is
dependent upon the underlying borrowers, the majority of which are banks.
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,
2008, 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 December 31, 2009
(Dollar amounts in thousands except per share data)
12/31/09 12/31/08 Change % Change
Year to Date Information:
Net Income $ 22,720 $ 24,769 ($ 2,049) -8.27%
Earnings Per Average
Share $ 1.73 $ 1.89 ($ 0.16) -8.47%
Return on Assets 0.95% 1.09% -0.14% -12.84%
Return on Equity 7.54% 8.61% -1.07% -12.43%
Net Interest Margin 4.13% 4.06% 0.07% 1.72%
Net Interest Income $ 86,994 $ 81,464 $ 5,530 6.79%
Non-Interest Income $ 28,532 $ 25,410 $ 3,122 12.29%
Non-Interest Expense $ 73,381 $ 66,447 $ 6,934 10.44%
Loss Provision $ 11,870 $ 7,855 $ 4,015 51.11%
Net Charge Offs $ 8,713 $ 6,926 $ 1,787 25.80%
Efficiency Ratio 60.64% 59.10% 1.54% 2.60%
Quarter to Date Information:
Net Income $ 5,850 $ 7,174 ($ 1,324) -18.46%
Earnings Per Average
Share $ 0.45 $ 0.55 ($ 0.10) -18.18%
Return on Assets 0.93% 1.25% -0.32% -25.60%
Return on Equity 7.50% 10.09% -2.59% -25.67%
Net Interest Margin 4.19% 4.18% 0.01% 0.24%
Net Interest Income $ 23,088 $ 21,444 $ 1,644 7.67%
Non-Interest Income $ 7,358 $ 7,680 ($ 322) -4.19%
Non-Interest Expense $ 20,171 $ 17,290 $ 2,881 16.66%
Loan Loss Provision $ 2,490 $ 1,980 $ 510 25.76%
Net Charge Offs $ 1,881 $ 1,540 $ 341 22.14%
Efficiency Ratio 63.38% 56.59% 6.79% 12.00%
Balance Sheet:
Assets $ 2,518,722 $ 2,302,675 $ 216,047 9.38%
Deposits $ 1,789,701 $ 1,563,498 $ 226,203 14.47%
Loans $ 1,631,764 $ 1,471,327 $ 160,437 10.90%
Shareholders' Equity $ 306,483 $ 286,844 $ 19,639 6.85%
Book Value Per Share $ 23.34 $ 21.87 $ 1.47 6.74%
Average Assets 2,400,100 2,282,021 $ 118,079 5.17%
Contact Information: For more information contact:
Michael A. Carty
(812) 238-6264