Exhibit 99.1
(FIRST LOGO)
News Release
FIRST FINANCIAL CORPORATION
ONE FIRST FINANCIAL PLAZA, TERRE HAUTE, INDIANA 47807 (812) 238-6000
For more information contact:
July 27, 2006 Michael A. Carty at (812) 238-6264
FIRST FINANCIAL CORPORATION REPORTS EARNINGS INCREASE
First Financial Corporation (NASDAQ:THFF) today announced a 28.7% increase
in net income for the three months ending June 30, 2006 over the same period of
2005. Net income was $6.4 million or $.48 per average share compared to $5.0
million or $.37 per average share for the second quarter of 2005. This
performance brings the year-to-date earnings to $11.9 million or $.90 per
average share compared to $11.3 million or $.84 per average share reported for
the six months ended June 30, 2005.
During the quarter net interest income improved to $18.5 million compared
to $18.3 million for the same period a year ago. The Corporation's improved
asset quality, evidenced by a 15% reduction in classified assets at June 30,
2006 as compared to June 30, 2005, resulted in a reduction of the provision for
loan losses of $3.1 million compared to the prior year quarter. Due to a higher
interest rate environment, the Corporation has chosen to retain mortgage loans
in the portfolio during 2006. This has resulted in $413 thousand less income
from gains on the sale of loans during the second quarter of 2006 compared to
the second quarter of 2005. Total non-interest income of $7.2 million for this
period was $592 thousand less than 2005. Non-interest expenses for the second
quarter increased by $434 thousand or 2.7% over the same period of 2005. A new
banking center facility in Vincennes, Indiana which opened early in 2006,
accounted for 36% or $156 thousand of this increase.
During the quarter deposits of the Corporation increased $9.9 million from
the same period in 2005. While loans have decreased during this period $75
million or 5.1% as a result of reducing classified assets and improving asset
quality, loans have increased from the first quarter of this year by $4.1
million and total assets increased by $22.1 million for the same period. For the
18th consecutive year the Corporation increased dividends to the shareholders.
The dividend of $.42 per share was declared during the second quarter and
reduced shareholders' equity $5.7 million.
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.
FIRST FINANCIAL CORPORATION
Financial Ratios for the Quarter and Six Months Ended June 30, 2006
(Dollar amounts in thousands except per share data)
06/30/06 06/30/05 $ CHANGE % CHANGE
---------- ---------- --------- --------
YEAR TO DATE INFORMATION:
Net Income $ 11,934 $ 11,303 $ 631 5.58%
Earnings Per Average Share $ 0.90 $ 0.84 $ 0.06 7.14%
Return on Assets 1.11% 1.05% 0.06% 5.71%
Return on Equity 8.75% 8.30% 0.45% 5.42%
Net Interest Margin 3.92% 3.95% -0.03% -0.76%
Net Interest Income $ 36,907 $ 36,621 $ 286 0.78%
Non-Interest Income $ 14,628 $ 15,539 ($911) -5.86%
Non-Interest Expense $ 32,427 $ 31,118 $ 1,309 4.21%
Loan Loss Provision $ 2,848 $ 6,006 ($3,158) -52.58%
Net Charge Offs $ 2,745 $ 8,360 ($5,615) -67.17%
Efficiency Ratio 60.07% 56.94% 3.13% 5.50%
QUARTER TO DATE INFORMATION:
Net Income $ 6,425 $ 4,992 $ 1,433 28.71%
Earnings Per Average Share $ 0.48 $ 0.37 $ 0.11 29.73%
Return on Assets 1.19% 0.93% 0.26% 27.96%
Return on Equity 9.41% 7.34% 2.07% 28.20%
Net Interest Margin 3.90% 3.98% -0.08% -2.01%
Net Interest Income $ 18,511 $ 18,278 $ 233 1.27%
Non-Interest Income $ 7,215 $ 7,807 ($592) -7.58%
Non-Interest Expense $ 16,211 $ 15,777 $ 434 2.75%
Loan Loss Provision $ 645 $ 3,783 ($3,138) -82.95%
Net Charge Offs $ 1,359 $ 6,137 ($4,778) -77.86%
Efficiency Ratio 60.15% 57.99% 2.16% 3.72%
BALANCE SHEET:
Assets $2,177,763 $2,157,759 $ 20,004 0.93%
Deposits $1,499,474 $1,489,608 $ 9,866 0.66%
Loans $1,386,137 $1,461,131 ($74,994) -5.13%
Shareholders' Equity $ 267,076 $ 268,545 ($1,469) -0.55%
Book Value Per Share $ 20.13 $ 20.04 $ 0.09 0.45%
Average Assets 2,148,024 2,150,014 ($1,990) -0.09%