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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2001
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Commission File Number 0-16759
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FIRST FINANCIAL CORPORATION
---------------------------
(Exact name of registrant as specified in its charter)
INDIANA 35-1546989
- ------------------------------ -------------------
(State or other jurisdiction (I.R.S. Employer
Incorporation or organization) Identification No.)
One First Financial Plaza, Terre Haute, IN 47807
- ------------------------------------------ ----------
(Address of principal executive office) (Zip Code)
(812) 238-6000
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x No .
--- ---
As of March 31, 2001 were outstanding 6,694,237 shares without par value, of the
registrant.
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FIRST FINANCIAL CORPORATION
FORM 10-Q
INDEX
PART I. Financial Information
Page No.
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Item 1. Financial Statements:
Consolidated Statements of Condition.....................................................................3
Consolidated Statements of Income........................................................................4
Consolidated Statements of Shareholders' Equity and Comprehensive Income.................................5
Consolidated Statements of Cash Flows....................................................................6
Notes to Consolidated Financial Statements...............................................................7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.....................................9
PART II. Other Information:
Signatures................................................................................................13
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FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollar amounts in thousands, except per share data)
March 31, December 31,
2001 2000
--------- ------------
(Unaudited)
ASSETS
Cash and due from banks $ 54,940 $ 68,755
Federal funds sold and short-term investments -- 4,175
Securities, available-for-sale 559,134 568,405
Loans:
Commercial, financial and agricultural 278,253 282,904
Real estate - construction 39,308 41,325
Real estate - mortgage 732,011 732,387
Installment 235,209 237,527
Lease financing 4,674 4,810
----------- -----------
1,289,455 1,298,953
Less:
Unearned income 817 947
Allowance for loan losses 19,846 19,072
----------- -----------
1,268,792 1,278,934
Accrued interest receivable 14,292 17,803
Premises and equipment, net 26,191 26,363
Bank-owned life insurance 45,665 45,037
Other assets 34,808 33,795
----------- -----------
TOTAL ASSETS $ 2,003,822 $ 2,043,267
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 151,168 $ 148,922
Interest-bearing:
Certificates of deposit of $100 or more 217,781 258,260
Other interest-bearing deposits 912,069 915,377
----------- -----------
1,281,018 1,322,559
Short-term borrowings 44,785 18,708
Other borrowings 452,629 489,063
Other liabilities 22,845 21,714
----------- -----------
TOTAL LIABILITIES 1,801,277 1,852,044
Shareholders' equity
Common stock, $.125 stated value per share;
Authorized shares--40,000,000
Issues shares-7,225,483 shares in 2001 and 2000
Outstanding shares--6,694,237 in 2001 and 2000 903 903
Additional capital 66,680 66,680
Retailed earnings 147,560 141,653
Accumulated other comprehensive income (loss):
Unrealized gains/(losses) on investments, net of tax 9,315 3,900
Treasury shares at cost--531,246 in 2001 and 2000 (21,913) (21,913)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 202,545 191,223
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,003,822 $ 2,043,267
=========== ===========
See accompanying notes.
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FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollar amounts in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
------- -------
(Unaudited) (Unaudited)
INTEREST INCOME:
Loans $27,749 $25,256
Securities:
Taxable 6,943 7,695
Tax-exempt 2,070 2,103
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9,013 9,798
Other 706 97
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TOTAL INTEREST INCOME 37,468 35,151
INTEREST EXPENSE:
Deposits 13,383 11,565
Other 7,177 6,832
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TOTAL INTEREST EXPENSE 20,560 18,397
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NET INTEREST INCOME 16,908 16,754
Provision for loan losses 1,488 860
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 15,420 15,894
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NONINTEREST INCOME:
Trust department income 680 775
Service charges and fees on deposit accounts 1,208 1,053
Investment security gains/(losses) -- --
Other 1,979 857
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3,867 2,685
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NONINTEREST EXPENSES:
Salaries and employee benefits 6,191 5,899
Occupancy expense 871 772
Equipment expense 952 960
Printing and supplies expenses 258 270
Other 3,190 2,925
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11,462 10,826
------- -------
INCOME BEFORE INCOME TAXES EXPENSE 7,825 7,753
Income Tax Expense 1,918 2,338
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NET INCOME $ 5,907 $ 5,415
======= =======
EARNINGS PER SHARE:
Net Income $ 0.88 $ 0.80
======= =======
Weighted average number of shares outstanding (in thousands) 6,694 6,802
======= =======
See accompanying notes
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FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
AND COMPREHENSIVE INCOME
Three Months Ended
March 31, 2001, and 2000
(Dollar amounts in thousands)
(Unaudited)
Accumulated
Other
Common Additional Retained Comprehensive Treasury
Stock Capital Earnings Income/(Loss) Stock Total
Balance, January 1, 2001 $903 $66,680 $141,653 $3,900 $(21,913) $191,223
Comprehensive income:
Net income 5,907 5,907
Change in net unrealized
gains/(losses) on securities,
net of tax 5,415 5,415
--------
Total comprehensive income 11,322
---- ------- -------- ------ --------- --------
Balance , March 31, 2001 $903 $66,680 $147,560 $9,315 $(21,913) $202,545
==== ======= ======== ====== ========= ========
Balance, January 1, 2000 $903 $66,680 $125,680 $(7,819) $(16,762) $168,682
Comprehensive income
Net income 5,415 5,415
Change in net unrealized
gains/(losses) on securities,
net of tax (830) (830)
--------
Total comprehensive income 4,585
Treasury stock purchase (2,918) (2,918)
---- ------- -------- ------ --------- --------
Balance , March 31, 2000 $903 $66,680 $131,095 $(8,649) $(19,680) $170,349
==== ======= ======== ====== ========= ========
See accompanying notes.
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FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
Three Months Ended
March 31,
2001 2000
--------- ---------
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 5,907 $ 5,415
Adjustment to reconcile net income to net cash
provided by operating activities:
Net accretion of discounts on investments (571) (533)
Provision for loan losses 1,488 860
Securities gains -- --
Provision for depreciation and amortization 835 821
Other, net 2,242 (13,622)
--------- ---------
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES 9,901 (7,059)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale securities -- 116
Maturities of available-for-sale securities 30,052 17,213
Purchases of available-for-sale securities (11,185) (17,402)
Loans made to customers, net of repayments 9,508 (35,606)
Net change in federal funds sold 4,175 (11,780)
Additions to premises and equipment (621) (1,019)
--------- ---------
NET CASH PROVIDED/(USED) BY INVESTING ACTIVITIES 31,929 (48,478)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits (41,541) (8,496)
Net change in short-term borrowings 26,077 30,156
Dividends paid (3,747) (3,442)
Purchase of treasury stock -- (2,918)
Proceeds from other borrowings 43,500 147,491
Repayments on other borrowings (79,934) (106,364)
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NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES (55,645) 56,427
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (13,815) 890
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 68,755 58,075
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 54,940 $ 58,965
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest $ 20,625 $ 17,978
========= =========
Income taxes paid $ 124 $ 592
========= =========
See accompanying notes.
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FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The accompanying March 31, 2001 and 2000 consolidated financial statements
are unaudited. The December 31, 2000 consolidated financial statements are as
reported in the First Financial Corporation (the Corporation) 2000 annual
report. The following notes should be read together with notes to the
consolidated financial statements included in the 2000 annual report.
1. The significant accounting policies followed by the Corporation and its
subsidiaries for interim financial reporting are consistent with the accounting
policies followed for annual financial reporting. All adjustments which are, in
the opinion of management, necessary for a fair statement of the results for the
periods reported have been included in the accompanying consolidated financial
statements and are of a normal recurring nature. The Corporation reports
financial information for only one segment, banking.
2. A loan is considered to be impaired when, based upon current information and
events, it is probable that the Corporation will be unable to collect all
amounts due according to the contractual terms of the loan. Impairment is
primarily measured based on the fair value of the loan's collateral. The
following table summarizes impaired loan information:
(000's)
March 31, December 31,
2001 2000
-------- -----------
Impaired loans with related allowance for loan
losses calculated under SFAS No. 114.............................. $7,430 $6,422
Interest payments on impaired loans are typically applied to principal
unless collection of the principal amount is deemed to be fully assured, in
which case interest is recognized on a cash basis.
3. Securities
The cost and fair value of the Corporation's investments at March 31, 2001
are shown below. All securities are classified as available-for-sale.
(000's)
March 31, 2001
Amortized Cost Fair Value
-------------- ----------
United States Government $153,265 $155,106
United States Government Agencies 161,187 163,568
States and Municipal 163,329 169,916
Other 69,847 70,544
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$547,628 $559,134
======== ========
4. Short-Term Borrowings
Period-end short term borrowings were comprised of the following:
(000's)
March 31, December 31,
2001 2000
-------- ------------
Federal Funds Purchased $34,819 5,510
Repurchase Agreements 9,735 12,269
Note Payable - U.S. Government 231 929
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$44,785 $18,708
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5. Other Borrowings
Other borrowings at period-end are summarized as follows:
(000's)
March 31, December 31,
2001 2000
-------- -----------
FHLB Advances $446,028 $482,460
City of Terre Haute, Indiana
Economic Development Revenue bonds 6,660 6,600
Other 1 3
- -
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$452,629 $489,063
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6. Derivatives
Effective January 1, 2001, the Corporation implemented a new accounting
standard, which requires all derivatives to be recorded at fair value and
carried on the statement of condition. Unless designated as hedges, changes in
the fair value of derivatives are recorded in the statement of income.
Implementation of this standard did not have a material effect on the
Corporation's financial condition or results of operations.
During 2000, the Corporation entered into an interest rate swap with a
notional principal balance of $10 million. The agreement requires the
Corporation to make variable rate payments, based on LIBOR, which rate was 4.88%
at March 31, 2001, and entitles the Corporation to receive fixed rate payments
at a rate of 6.817%. The swap has a 24-month term and was entered into to hedge
a similar maturity fixed rate certificate of deposit special that generated
approximately $13 million in deposits. At March 31, 2001, the interest rate swap
contract has a fair value of $304 thousand, which is approximately the same
amount as the fair value adjustment to the hedged certificates of deposit. The
interest rate swap is included in time deposits on the statement of condition.
Management believes the derivative is an effective hedge. Net settlement income
or expense is included in interest expense. The Corporation is exposed to credit
loss in the event the counterparty does not perform under the agreement in an
amount equal to the rate differential when the fixed rate exceeds the variable
rate.
During 2001 the Corporation purchased an interest rate cap contract with a
notional principal balance of $50 million. The agreement requires the
counterparty to pay the Corporation the excess of the 3 month LIBOR over 6.00%.
The cap has a 36 month term which runs through March, 2004. No payments are
currently required under the agreement. The agreement was entered into to help
protect the Corporation's net interest income protection should interest rates
increase in excess of the cap's trigger amount. The interest rate cap is carried
at fair value, approximately $290 thousand at March 31, 2001, and is included in
other assets on the statement of condition. As the agreement was made in late
March, fair value approximates cost at March 31, 2001.
7. Acquisitions
During March 2001, the Corporation executed a definitive agreement to
acquire Forrest Sherer, Inc, a full lines insurance agency headquartered in
Terre Haute, Indiana. The purchase price will be $8.5 million payable in cash
and stock of the Corporation. The acquisition will be accounted for using the
purchase method of accounting. Its results of operations will be included in the
Corporation's financial statements only after acquisition. Consummation of the
transaction was subject to various conditions. These were satisfied and the
acquisition was consummated on April 30, 2001. The transaction did not affect
the March 31, 2001 financial statements. Management has not yet finalized their
determination of the fair value of assets and liabilities acquired or the number
of shares to be issued to shareholders of Forrest Sherer, Inc.
During March 2001, the Corporation executed a definitive agreement to
acquire Community Financial Corporation (Community), based in Olney, Illinois.
Consummation of the transaction is subject to a variety of conditions,
regulatory approval and approval by the shareholders of Community. This
transaction will also be accounted for using the purchase method. The cash
purchase price for each share of Community is dependent upon a number of
variables and conditions. Management expects to consummate this transaction in
late 2001.
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FIRST FINANCIAL CORPORATION
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations and Quantitative and Qualitative Disclosures About Market Risk
The purpose of this discussion is to point out key factors in the
Corporation's recent performance compared with earlier periods. The discussion
should be read in conjunction with the financial statements beginning on page
three of this report. All figures are for the consolidated entities. It is
presumed the readers of these financial statements and of the following
narrative have previously read the Corporation's annual report for 2000.
Forward-looking statements contained in the following discussion are based
on estimates and assumptions that are subject to significant business, economic
and competitive uncertainties, many of which are beyond the Corporation's
control and are subject to change. These uncertainties can affect actual results
and could cause actual results to differ materially from those expressed in any
forward-looking statements in this discussion.
Summary of Operating Results
Net income for the three months ended March 31, 2001 was $5.9 million, a
9.1% improvement from the $5.4 million in the same period in 2000. Basic
earnings per share increased to $0.88 for the first quarter of 2001 compared to
$0.80 for 2000, a 10.0% improvement.
The primary components of income and expense affecting net income are
discussed in the following analysis.
Net Interest Income
The Corporation's primary source of earnings is net interest income, which
is the difference between the interest earned on loans and other investments and
the interest paid for deposits and other sources of funds. Net interest income
increased to $16.9 million in the first three months of 2001 from $16.8 million
in the same period of 2000. This was the result of an increase of $117 million
in average interest earning assets and an increase of $62 million in average
interest bearing liabilities.
Loans and non-taxable investments experienced higher yields for the
three-month period ended March 31, 2001 compared to the same period in 2000.
However, the higher yield on these assets was largely offset by higher costs of
funds, particularly time deposits. The Corporation's net interest margin (tax
equivalent net interest income divided by average earnings assets) declined to
3.84% for the quarter ended March 31, 2001, compared to 3.99% for the prior
year.
During the twelve months ended March 31, 2001, loans increased $60.7
million and total assets climbed 2.6% to $2.0 billion while deposits increased
2.7% or $33.4 million. Also during 2000, the Corporation has purchased treasury
stock for $5.2 million. These funds were extracted from the earning pool,
lowering net interest income and increasing earnings per share.
Noninterest Income
Noninterest income for the three month period ending March 31, 2001, as
compared to the same period of 2000, increased $1.2 million, or 44.0%. This was
attributed to significantly higher gains recognized in the secondary mortgage
market, increases in fee-based income and an increase in commissions generated
by a reinsurance subsidiary.
Noninterest Expenses
Noninterest expenses for the first three months of 2001, as compared to the
same period of 2000, increased $.6 million due mainly to increases in salaries
and employee benefits and occupancy expenses.
Allowance for Loan Losses
The Corporation's provision for loan losses increased to $1.5 million for the
first three months of 2001 compared to $.9 million in the same period of 2000.
At March 31, 2001, the allowance for loan losses was 1.56% of net loans, an
increase from 1.50% at December 31, 2000. Net chargeoffs for the first three
months of 2001 were $.7 million compared to only $.1 million for the same period
of 2000. The increased provision is substantially in response to one specific
problem credit, a steel
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manufacturing company. Credit facilities to this customer aggregate to
approximately $5 million. These loans are on non-accrual status and management
anticipates the charge-off of a significant portion of this credit in 2001.
Based on historical loss experience and management's review of the current
portfolio, management believes the allowance of $19.8 million at March 31, 2001,
is adequate.
Nonperforming Loans and Leases
Nonperforming loans and leases consist of (1) nonaccrual loans and leases
on which the ultimate collectability of the full amount of interest is
uncertain, (2) loans and leases which have been renegotiated to provide for a
reduction or deferral of interest or principal because of a deterioration in the
financial position of the borrower, and (3) loans and leases past due ninety
days or more as to principal or interest. A summary of nonperforming loans and
leases at March 31, 2001 and December 31, 2000 follows:
(000's)
March 31, 2001 December 31, 2000
-------------- -----------------
Nonaccrual loans and leases $10,601 $8,316
Renegotiated loans and leases 126 735
Ninety days past due loans and leases 3,349 5,499
----- -----
Total nonperforming loans and leases $14,076 $14,550
======= =======
Ratio of the allowance for loan losses
as a percentage of nonperforming loans and leases 141% 131%
The following loan categories comprise significant components of the
nonperforming loans at March 31, 2001 and December 31, 2000.
(000's) (000's)
March 31, 2001 December 31, 2000
------------------- --------------------
Non-Accrual Loans:
1-4 family residential $ 1,769 17% $ 1,601 19%
Commercial loans 8,084 76 6,019 72
Installment loans 748 7 696 9
Other, various -- -- -- --
------- ------- ------- -------
$10,601 100% $ 8,316 100%
======= ======= ======= =======
Past due 90 days or more:
1-4 family residential $ 1,650 49% $ 1,667 30%
Commercial loans 1,125 34 $ 2,986 54
Installment loans 571 17 818 15
Other, various 3 -- 28 1
------- ------- ------- -------
$ 3,349 100% $ 5,499 100%
======= ======= ======= =======
There are no material industry concentrations within the nonperforming loans.
Interest Rate Sensitivity and Liquidity
The Corporation charges the nine subsidiary banks with monitoring and
managing their individual sensitivity to fluctuations in interest rates and
assuring that they have adequate liquidity to meet loan demand or any potential
unexpected deposit withdrawals. This function is facilitated by the
Asset/Liability Committee (the Committee). The primary goal of the committee is
to maximize net interest income within the interest rate risk limits approved by
the Board of Directors. This goal is accomplished through management of the
subsidiary bank's balance sheet liquidity and interest rate risk exposures due
to the changes in economic conditions and interest rate levels.
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Interest Rate Risk and Quantitative and Qualitative Disclosures About Market
Risk
Management considers interest rate risk to be the Corporation's most
significant market risk. Interest rate risk is the exposure to changes in net
interest income as a result of changes in interest rates. Consistency in the
Corporation's net income is largely dependent on the effective management of
this risk.
The Committee reviews a series of monthly reports to ensure that
performance objectives are being met. It monitors and controls interest rate
risk through earnings simulation. Simulation modeling measures the effects of
changes in interest rates, changes in the shape of the yield curve, and changes
in prepayment speeds on net interest income. The primary measure of Interest
Rate Risk is "Earnings at Risk." This measure projects the earnings effect of
various rate movements over the next three years on net interest income. It is
important to note that measures of interest rate risk have limitations and are
dependent upon certain assumptions. These assumptions are inherently uncertain
and, as a result, the model cannot precisely predict the impact of interest rate
fluctuations on net interest income. Actual results will differ from simulated
results due to timing, frequency and amount of interest rate changes as well as
overall market conditions. The Committee has performed a thorough analysis and
believes the assumptions to be valid and theoretically sound. The relationships
are continuously monitored for behavioral changes.
As outlined in Note 6, the Corporation makes limited use of derivatives to
facilitate its interest rate risk management activities. At March 31, 2001,
derivatives include a $10 million interest rate swap directly related to a
certificate of deposit special and a $50 million interest rate cap designed to
help protect net interest income should rates rise significantly in the near
term. The Corporation currently does not invest in derivative products for
short-term gain, nor is engaged in securities trading activity. The Corporation
invests in assets whose value is derived from an underlying asset. These assets
include government agency issued mortgage-backed securities. The performance of
these assets in changing rate environments and the impact of derivatives are
included in the following table.
The table below shows the Corporation's estimated earnings sensitivity
profile as of March 31, 2001. Given a 100 basis point increase in rates, net
interest income would decrease 2.55% over the next 12 months and decrease 4.84%
over the second 12 month period. A 100 basis point decrease would result in a
0.20% increase in net interest income over the next 12 months and a 0.17%
decrease over the second 12 month period. These estimates assume all rates
changed overnight and management took no action as a result of this change.
Percentage Change in Net Interest Income
Basis Point ----------------------------------------
Interest Rate Change 12 months 24 months 36 months
----------------------------------------
Down 300 -4.89 -5.84 -12.06
Down 200 -1.51 -2.21 -6.34
Down 100 0.20 -0.17 -2.21
Up 100 -2.55 -4.84 -2.84
Up 200 -8.47 -8.87 -4.84
Up 300 -11.98 -12.42 -6.14
The Corporation does have other assets and liabilities, which contain
embedded options, most notably callable agency securities and putable Federal
Home Loan Bank advances. The securities pay a premium rate and the advances
charge a discounted rate in exchange for the option. Therefore, there is a
benefit to current income from using these products. Management believes these
put and call options are clearly and closely related to the underlying
instruments and that they are therefore not considered derivatives. Typical rate
shock analysis does not reflect management's ability to react and thereby reduce
the effects of rate changes, and represents a worst case scenario. The model
assumes no actions are taken and prices change to the full extent of the rate
shock.
Liquidity Risk
Liquidity is measured by each bank's ability to raise funds to meet the
obligations from its customers, including deposit withdrawals and credit needs.
This is accomplished primarily by maintaining sufficient liquid assets in the
form of investment securities and core deposits. The Corporation has $14.4
million of investments that mature throughout the coming 12 months. The
Corporation also anticipates $49.8 million of principal payments from
mortgage-backed securities. Given the current interest rate environment, the
Corporation anticipates $69.3 million of securities to be called within the next
12 months. With these sources of funds, the Corporation currently anticipates
adequate liquidity to meet the expected obligations of its customers.
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Financial Condition
Strong earnings and unrealized gains on securities increased shareholders'
equity 18.9% to $202.6 million as of March 31, 2001 compared to $170.3 million
on March 31, 2000. Book value per share increased 20.2% over this same period to
$30.26 from $25.19. Total assets increased 2.6% or $50.1 million from March 31,
2000. This growth was in loans which increased 5.0%, or $60.8 million.
The Corporation experienced a reduction in total assets of $39.4 million or
1.9% since year end. With lower fixed rates offered in the market recently, the
Corporation has sold various mortgage loans in the secondary market which was
why loans decreased $9.4 million since year end. Also cash and other assets
converted to cash were used to pay down borrowings $10.3 million. There was a
reduction in deposits of $41.5 million since year end of which $40.5 million
represented certificates of deposits in excess of $100 thousand.
Capital Adequacy
As of March 31, 2001, the Corporation's leverage ratio was 9.45% compared
to 9.33% at December 31, 2000.
At March 31, 2001, the Corporation's total risk-based capital ratio, which
includes Tier II capital, was 15.22% compared to 15.39% at December 31, 2000.
These amounts exceed minimum regulatory capital requirements.
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FIRST FINANCIAL CORPORATION
PART II OTHER INFORMATION
FORM 10-Q
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST FINANCIAL CORPORATION
-------------------------------
(Registrant)
Date: May 11, 2001 By /s/ Donald E. Smith
-----------------------------
Donald E. Smith, Chairman
Date: May 11, 2001 By /s/ Norman L. Lowery
-----------------------------
Norman L. Lowery,
Vice Chairman
Date: May 11, 2001 By /s/ Michael A. Carty
-----------------------------
Michael A. Carty, Treasurer
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