(FIRST FINANCIAL LOGO) News Release
One First Financial Plaza, Terre Haute, IN 47807 o (812) 238-6000
FOR IMMEDIATE RELEASE For more information contact:
October 27, 2004 Michael A. Carty at (812) 238-6264
FIRST FINANCIAL CORPORATION REPORTS RESULTS
TERRE HAUTE, INDIANA - First Financial Corporation (NASDAQ: THFF) today
announced that the net income for the nine months ending September 30, 2004
increased 16.8% to $23.0 million compared to the $19.7 million earned for the
same period of 2003. Earnings per share for the first nine months of 2004
increased 17.2% to $1.70 per share compared to $1.45 for the same period of
2003. Non-interest income, including life insurance proceeds has increased $6.2
million or 27.0% to $29.1 million for the first nine months of 2004 compared to
2003. Non-interest expense increased $903,000 or 2.0% for the same period.
Loans of the Corporation at September 30, 2004 increased $30.4 million or 2.1%
over balances at the September 30, 2003 while deposits fell 1.2% or $17.6
million during the same period. Funds provided by maturing investments were used
to fund the loan growth.
The earnings for the third quarter of 2004 decreased $468,000 to $6.0 million
from $6.4 million for the third quarter of 2003. This represents a decrease in
earnings per share of $0.03 to $0.44 per share from $0.47 for the same period of
2003. The third quarter net interest income for 2004 was $684,000 less than the
same period of 2003. The increases and decreases related to the provision for
loan losses, non-interest income, non-interest expense and tax expense reduced
the effect of this decrease in net interest income on net income by $216,000.
The net interest margin remained stable during the third quarter of 2004, the
result of two rate increases that took place during the 3rd quarter of 2004 by
the Federal Reserve. This allowed the Corporation the benefit of earnings on
assets from rate changes to occur at a faster rate than the cost of interest
bearing liabilities.
First Financial Corporation is the holding company for First Financial Bank
N.A. in Indiana and Illinois; The Morris Plan Company of Terre Haute and
Forrest Sherer, Inc. in Indiana; and First Crawford State Bank and First
Community Bank N.A. in Illinois.
FIRST FINANCIAL CORPORATION
FOR THE QUARTER AND THE NINE MONTHS ENDING SEPTEMBER 30, 2004
(Dollar amounts in thousands except per share data)
<Table>
<Caption>
09/30/04 09/30/03 CHANGE % CHANGE
---------- ---------- --------- -----------------
YEAR TO DATE
INFORMATION:
Net Income $22,989 $19,650 $3,339 16.99%
Earnings Per
Average Share $1.70 $1.45 $0.25 17.24%
Return on Assets 1.38% 1.20% 0.18% 15.00%
Return on Equity 11.62% 10.50% 1.12% 10.67%
Net Interest Margin 3.77% 4.00% -0.23% -5.75%
Net Interest Income $53,533 $56,138 $(2,605) -4.64%
Non-Interest Income $29,091 $22,899 $6,192 27.04%
Non-Interest Expense $47,279 $46,376 $903 1.95%
Loan Loss Provision $6,069 $6,848 $(779) -11.38%
Net Charge Offs $4,602 $5,359 $(757) -14.13%
Efficiency Ratio 57.16% 55.33% 1.83% 3.31%
QUARTER TO DATE
INFORMATION:
Net Income $5,975 $6,443 $(468) -7.26%
Earnings Per
Average Share $0.44 $0.47 $(0.03) -6.38%
Return on Assets 1.08% 1.18% -0.10% -8.47%
Return on Equity 9.05% 10.28% -1.23% -11.96%
Net Interest Margin 3.77% 3.96% -0.19% -4.80%
Net Interest Income $17,847 $18,531 $(684) -3.69%
Non-Interest Income $8,193 $7,310 $883 12.08%
Non Interest Expense $15,875 $15,578 $297 1.91%
Loan Loss Provision $2,223 $2,318 $(95) -4.10%
Net Charge Offs $1,332 $1,283 $49 3.82%
Efficiency Ratio 58.00% 56.78% 1.22% 2.15%
BALANCE SHEET:
Assets $2,184,724 $2,193,686 $(8,962) -0.41%
Deposits $1,432,577 $1,450,167 $(17,590) -1.21%
Loans $1,468,044 $1,437,677 $30,367 2.11%
Shareholders' Equity $269,474 $253,933 $15,541 6.12%
Book Value Per Share $19.96 $18.66 $1.30 6.95%
Average Assets 2,216,600 2,183,120 $33,480 1.53%
</Table>