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
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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