[FIRST FINANCIAL CORPORATION LOGO]
FIRST FINANCIAL NEWS RELEASE
CORPORATION
ONE FIRST FINANCIAL PLAZA, TERRE HAUTE, INDIANA 47807 (812) 238-6000
FOR IMMEDIATE RELEASE For more information contact:
February 2, 2005 Michael A. Carty at (812) 238-6264
First Financial Releases 2004 Earnings and 4th Quarter Results
First Financial Corporation today announced the results of operations for
the year ended December 31, 2004, reflecting net income of $28.0 million or
$2.07 per share. This represents an increase over 2003 of 5.7% in net income and
6.1% in earnings per share. Dividends per share increased 12.9% over 2003 to
$0.79 per share in 2004. The book value of the Corporation's stock increased
5.5% to $19.82 per share from the $18.80 per share reported on December 31,
2003.
During 2004 the Corporation offset the impact of lower interest rates
through increases in non-interest income. These increases in non-interest
income, primarily in income on deposit accounts and gain on a life insurance
benefit, amounted to $4.9 million. Non interest expenses increased at a modest
1.9% or $1.2 million during the year as the Corporation continued its effort to
control expenses.
Net interest income for the fourth quarter of 2004 was $18,669, 2.0% higher
than the same quarter in 2003 and 4.6% higher than the third quarter of 2004.
Should interest rates continue to rise we anticipate in 2005, the Corporation's
net interest margin is likely to further improve. Net income for the fourth
quarter of 2004 was $5.0 million compared
to $6.8 million for the same period in 2003. During the fourth quarter of 2003,
the Corporation benefited from a reduction in its provision for loan losses of
$1.5 million as a result of successful restructuring of a large classified
credit. That reduction together with the write-down in December, 2004 of a
security that was determined to be other than temporarily impaired, were the
primary reasons for lower fourth quarter net income.
"Our success is a direct result of our employees and their dedication to
our customers." said First Financial Corporation Chairman Donald E. Smith. "We
are proud of their accomplishments."
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.
Statements in this press release that relate to future results and events
(including statements about future financial and operating performance and
levels of interest rates) are based on the Corporation's current expectations.
Actual results in future periods may differ materially from those currently
expected or desired because of a number of risks and uncertainties, including
general economic and business conditions; changes in interest rates; loss of
deposits and loan demand to other financial institutions; substantial changes in
financial markets; changes in real estate values and the real estate market; or
regulatory changes. Additional discussion of these and other factors affecting
the Corporation's business and prospects is contained in the Corporation's
periodic filings with the Securities and Exchange Commission.
FIRST FINANCIAL CORPORATION
FOR THE QUARTER AND THE TWELVE MONTHS ENDING DECEMBER 31, 2004
(Dollar amounts in thousands except per share data)
12/31/04 12/31/03 CHANGE % CHANGE
YEAR TO DATE INFORMATION:
Net Income $ 28,009 $ 26,493 $ 1,516 5.72%
Earnings Per Average Share $ 2.07 $ 1.95 $ 0.12 6.15%
Return on Assets 1.28% 1.21% 0.07% 5.79%
Return on Equity 10.45% 10.57% -0.12% -1.14%
Net Interest Margin 3.77% 4.02% -0.25% -6.22%
Net Interest Income $ 72,202 $ 74,436 $ (2,234) -3.00%
Non-Interest Income $ 35,754 $ 30,819 $ 4,935 16.01%
Non-Interest Expense $ 63,656 $ 62,461 $ 1,195 1.91%
Loan Loss Provision $ 8,292 $ 7,455 $ 837 11.23%
Net Charge Offs $ 9,613 $ 7,465 $ 2.148 28.77%
Efficiency Ratio 58.18% 56.00% 2.18% 3.89%
QUARTER TO DATE INFORMATION:
Net Income $ 5,020 $ 6,843 $ (1,823) -26.64%
Earnings Per Average Share $ 0.37 $ 0.50 $ (0.13) -26.00%
Return on Assets 0.92% 1.23% -0.31% -25.20%
Return on Equity 7.09% 10.68% -3.59% -33.61%
Net Interest Margin 3.77% 4.08% -0.31% -7.60%
Net Interest Income $ 18,669 $ 18,298 $ 371 2.03%
Non-Interest Income $ 6,663 $ 7,920 $ (1,257) -15.87%
Non Interest Expense $ 16,377 $ 16,085 $ 292 1.82%
Loan Loss Provision $ 2,223 $ 607 $ 1,616 266.23%
Net Charge Offs $ 5,011 $ 2,106 $ 2,905 137.94%
Efficiency Ratio 61.32% 58.02% 3.30% 5.69%
BALANCE SHEET:
Assets $2,183,992 $2,223,057 $ (39,065) -1.76%
Deposits $1,443,121 $1,479,347 $ (36,226) -2.45%
Loans $1,463,871 $1,429,525 $ 34,346 2.40%
Shareholders' Equity $ 268,335 $ 255,279 $ 13,056 5.11%
Book Value Per Share $ 19.82 $ 18.80 $ 1.02 5.45%
Average Assets 2,192,168 2,192,985 $ (817) -0.04%