Exhibit 99.1
(COMPANY LOGO OMITTED)
FIRST FINANCIAL
CORPORATION
ONE FIRST FINANCIAL PLAZA, TERRE HAUTE, INDIANA 47807 (812) 238-6000
For more information contact: Michael Carty (812) 238-6264
First Financial Releases Financial Results
FOR IMMEDIATE RELEASE
First Financial Corporation (NASDAQ: THFF) today announced the results
of operations for the year and quarter ended December 31, 2003, reflecting net
income of $26.5 million or $1.95 per share and $6.8 million or $.50 per share
respectively.
During the fourth quarter of 2002, the company received $3.9 million of
life insurance proceeds, which increased earnings per share for the year and the
fourth quarter of 2002 by $.29. As a result, the comparison of period-to-period
earnings reflects a 7.5%, $2.1 million decrease in net income for the year and a
25.5%, $2.3 million decrease in net income for the quarter ended December 31,
2003. A comparison of net income adjusted for the 2002 life insurance proceeds
reflects a $1.8 million, 7.2% increase in the year-over-year comparison and a
$1.6 million, 29.8% increase in fourth quarter earnings.
Increases in other non-interest income, primarily fee-related services
and gains on the sale of mortgage loans, a $2 million decrease in the provision
for loan and lease loss, and a reduction of other non-interest expenses
amounting to $856 thousand more than offset the $3.7 million, 4.8% decrease in
net interest income, which resulted from a slow economy and a low interest rate
environment.
For the fourth quarter of 2003 net income was $1.6 million or 29.8%
higher than the same period in 2002 adjusted for the $3.9 million of life
insurance proceeds. This increase was
the result of increased non-interest income of $1.3 million and a $2.3 million
decrease in the provision for loan losses.
The 2003 fourth quarter reduction in the provision for loan losses was
the result of satisfactory resolution of several under-performing commercial
credits during the quarter. Loans past due ninety days or more decreased over $3
million and non-accrual loans were reduced by $2.4 million during the quarter.
The total non-performing loans as a percent of total loans dropped from 1.27% at
December 31, 2002 to .99% at the end of 2003. Net charge-offs for the year of
$7.5 million equaled the $7.5 million provision for loan losses. At December 31,
2003, the allowance for loan and lease losses was 1.49% of total loans
outstanding as compared to 1.48% the previous year end.
"We're proud of our employees for their outstanding performance during
difficult economic times," said First Financial Corporation Chairman Donald E.
Smith. "Our success is a direct result of their dedication to customer
satisfaction and convenience."
FIRST FINANCIAL CORPORATION
FOR THE QUARTER AND THE TWELVE MONTHS ENDING DECEMBER 31, 2003
(Dollar amounts in thousands except per share data)
<Table>
<Caption>
12/31/03 12/31/02 CHANGE % CHANGE
YEAR TO DATE INFORMATION:
Net Income $26,493 $28,640 ($2,147) -7.50%
Earnings Per Average Share $1.95 $2.10 ($0.15) -7.14%
Return on Assets 1.21% 1.30% -0.09% -6.92%
Return on Equity 10.57% 12.01% -1.44% -11.99%
Net Interest Margin 4.02% 4.10% -0.08% -1.95%
Net Interest Income $74,436 $78,176 ($3,740) -4.78%
Non-Interest Income $30,819 $30,468 $351 1.15%
Non-Interest Expense $62,461 $63,317 ($856) -1.35%
Loss Provision $7,455 $9,478 ($2,023) -21.34%
Net Charge Offs $7,465 $8,253 ($788) -9.55%
Efficiency Ratio 56.00% 56.81% -0.20% -0.36%
QUARTER TO DATE INFORMATION:
Net Income $6,843 $9,189 ($2,346) -25.53%
Earnings Per Average Share $0.50 $0.67 ($0.17) -25.37%
Return on Assets 1.23% 1.66% -0.43% -25.90%
Return on Equity 10.68% 15.27% -4.59% -30.06%
Net Interest Margin 4.08% 4.13% -0.05% -1.21%
Net Interest Income $18,298 $19,337 ($1,039) -5.37%
Non-Interest Income $7,920 $10,571 ($2,651) -25.08%
Non-Interest Expense $16,085 $16,716 ($631) -3.77%
Loss Provision $607 $2,857 ($2,250) -78.75%
Net Charge Offs $2,106 $2,478 ($372) -15.01%
Efficiency Ratio 58.02% 59.98% 0.54% 0.94%
BALANCE SHEET:
Assets $2,223,057 $2,169,748 $53,309 2.46%
Deposits $1,479,347 $1,434,654 $44,693 3.12%
Loans $1,429,525 $1,432,564 ($3,039) -0.21%
Shareholders' Equity $255,279 $241,971 $13,308 5.50%
Book Value Per Share $18.80 $17.77 $1.03 5.81%
Average Assets 2,192,985 2,208,070 ($15,085) -0.68%
</Table>