First Financial Corp
Annual Report 2009

Plain-text annual report

2 0 09 A N N U AL R E P O RT F I N A N C I AL C O R P O R A T I ON v; . * > i / y s ; B! :|Ks|s^i^. ".-.-"• I-."-, IP."" '^^i:!'•t<^'^'^ -;..... .. , V/ • :"". '-f'- \ . . ' " ; • '. k , - •• ,', ^> A - C '' - • ' • > - i £ f -f l^%jtrA:. ^f:^iv,?,i.-is :%w^ IP, •.i.^'r-i'^^^jji 2 0 09 A N N U AL REPORT FINANCIAL H I G H L I G H TS Dollar amounts in thousands, except per share amounts FOR THE YEAR Ner income Net income per sliare Book value per share Cash dividends per share AT YEAR END Assers Deposhs Loans, net Securities Shareholders' equity December 3 1, 2 0 09 2 0 08 2 0 07 $ 22,720 $ 24,769 $ 25,580 1.73 23.34 .90 1.89 21.87 .89 1.94 21.49 .87 $2,518,722 $ 2,302,675 $2,231,562 1,789,701 1,563,498 1,529,721 1,631,764 1,471,327 1,443,067 587,246 306,483 596,915 286,844 558,020 281,692 SHAREHOLDER INFORMATION The common stock of First Financial Corporation is traded on the NASDAQ Global under the symbol THFF, A copy of form 10-K, as filed with the Securities and Exchange Commission, is available upon written request to: Rodger A, McHargue, First Financial Corporation, P,0, Box 540, Terre Haute, IN 47808, FIRST F I N A N C I AL C O R P O R A T I ON 5r< our shareholders and friends In her hit song "The Climb," holder equity grew to a record Miley Cyrus sings, ",,,there's always $306.4 million. During a year when gonna be another mountain..." 140 banks had their doors closed by Perhaps thar is what we should the FDIC and nearly one-rhird of all expect after rhe evenrs of 2009. banks lost money, our net interest The collapse ofthe housing market, income increased 6.8% to nearly record foreclosures, government $87 million. Our ner interest mar bailouts, double digit unemploy gin of 4.13% conrinued to drive ment and surging national debt are above-average earnings with net among rhe mountains we encoun- income of $22.7 million, a signifi rered. Nonvirhstanding these chal cant achievement considering our lenges, we are pleased to say First FDIC deposit insurance premiums Financial Corporation is recognized increased nearly $3 million dollars. as one ofthe strongesr financial institutions in the United States. In 2009, First Financial Bank was recognized by The Banker magazine as one of the top 200 banks in the United States and top 1000 banks When other companies were advising their shareholders they would pay no dividends, we increased yours to $0.90 per share, a 1.1% increase over 2008. 2009 marks our 21st consecutive year of In 2009, First Financial Corporation's total assets in the world, based on our srrength dividend increases. exceeded $2.5 billion, a and stability. We were also honored again by Bauer Financial, Inc., a leading bank rating firm, with its 9.3% increase over 2008. prestigious 5-Star Award. We expanded our branch delivery sysrem in July 2009 when we acquired the deposits and branches ofthe First National Bank of We are happy to report we had no Danville from the FDIC, allowing need to participate in the Troubled us to obtain a number rwo market Asser Relief Program (TARP), the share in Vermilion Counry, Illinois. government's plan for bailout of In Ocrober 2009, we opened our financial institutions. As a well-capi 54th banking center at Sycamore talized company without operating Terrace, a developing area on the difficulties, we saw no need for gov southeast side of Terre Haute, ernment assistance or taxpayer dol Indiana. lars. Our stability allowed us to In addition to expanding our ser avoid the expense of this program vice area, we continued to enhance and the potential dilution of share the online and electronic banking holder value. options for our customers. In 2009, Despite the challenges there were First Financial Bank was one of rhe many positives for First Financial firsr to "go mobile" in our market in 2009. For the first time, the and to offer banking by cell phone Corporation's total assets exceeded or other inrernet-enabled device. $2.5 billion, a 9.3% increase over Mobile banking allows our cus 2008. Toral deposits topped $1.7 tomers to bank conveniently any billion, a 14.4% increase, and share time and anywhere they have a 9 2 0 09 A N N U AL REPORT wireless signal. We also introduced the services of a United Way agency. First Online eStatements, an envi- Year after year, First Financial ronmenrally friendly service, which Corporation associates conduct an allows our customers ro view, print annual campaign to support the or download statements and can United Way. Nearly every year, they celled checks at their convenience. set a new record for giving. They Support of communities is a basic tenant of what we do. did not let a poor economy get in their way in 2009 as our commit Annually, our associares contribute ment totaled $87,228.41. thousands of hours to civic, charita Although there may be new ble and religious organizations. mounrains ahead of us, we will not During 2009, First Financial spon waiver in our commitment to pro sored and our associates volunteered vide our shareholders wirh positive with hundreds of organizations, returns without taking excessive risk. such as the Indiana Special To do that, we will continue to hire, Olympics, Easter Meals for the train and retain the best and most Needy, Arts Illiana, Christmas in knowledgeable associates available— the Park, the Boys and Girls Club, those who have a positive attitude the Vigo County School and strong work ethic. We will con Corporation Teacher of the Year tinue to operate in a safe and sound Awards and the Indianapolis Colts manner, providing customers with Training Camp. There are rwo special programs our associates embraced during 2009 thar we are particularly proud to tell you about. In March, First Financial Bank associates learned area food banks were struggling to excellent products and services through a variery of convenient delivery channels. We will provide our customers with unparalleled ser vice, striving each day to create an experience they value and showing each how much we value them. provide food and orher necessities to As we start 2010, we want to the less fortunate ofthe communi ties we serve. These associates, in parmership wirh the Terre Haute thank our customers who continue to bless us with their business and loyalty. We extend a special thanks Fire Department, the Terre Haute to our associates for a successful Tribune-Star and WTHI-TV, devel 2009 and more so for conrinuing to oped Food for Friends, a program to adhere to the sound principles that collect food and other non-perishable allowed us to operate successfully in items in First Financial branches. Through the efforts of our associ perhaps rhe poorest economic con ditions since the Great Depression, ates, more than 50,000 pounds of Finally, we rhank you, our share food were collected by year end. holders, for your continued support, There are few of us who do not confidence and trust. know someone who benefits from Liffyl

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