By Arthur Foulkes
TERRE HAUTE — First Financial Corp. reported a significant increase in third quarter profits this year compared with the third quarter of 2008.
The Terre Haute-based corporation, which is a holding company for First Financial Bank in Indiana and Illinois, the Morris Plan and Forrest Sherer Inc., reported after-expense income of $7.72 million in the quarter that ended Sept. 30. That compares with net income of $3.5 million in the third quarter of last year.
“We had a much better quarter than we did a year ago,” said Mike Carty, chief financial officer for First Financial. “Overall, we’re satisfied with our performance for the year.”
Comparing 2008 and 2009 figures is a little difficult due to changes in accounting rules in the past year, Carty noted. The bank’s quarterly earnings report, released in late October, also is affected by the corporation’s acquisition in July of the failed First National Bank of Danville, Ill., from federal regulators.
The First National Bank of Danville’s failure resulted primarily from losses related to investments in collateralized debt obligations and other loan losses, according to a July 2 Federal Deposit Insurance Corp. media release. The acquisition of the bank by First Financial Corp. was designed to protect depositors in First National Bank of Danville, the FDIC stated.
While First Financial’s third quarter profits were higher than a year ago, year-to-date profits for the corporation are down about 4 percent, according to the corporation’s latest earnings report. Nevertheless, First Financial has maintained a stronger balance sheet during the recent financial crisis than many other banking institutions, Carty noted.
“We’ve not had the level of problems that the [banking] industry has seen,” he said. “Our numbers are better than the economy’s,” but the economy continues to struggle, especially regarding employment, he said. The fourth quarter will be an important indicator of whether or not the economy actually has turned a corner, Carty said.
In addition to higher third quarter profits, First Financial reported 8.4 percent growth in interest income and significant growth in non-interest income.
First Financial Corp. stock, which is listed on the NASDAQ stock exchange as THFF, was trading Friday afternoon around $29 per share compared with more than $40 per share one year ago.
Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.
