First Financial Corporation Accelerates Branch Optimization Plan

Rhea-AI Summary

First Financial Corporation (NASDAQ: THFF) has announced a strategic plan to enhance operational efficiency by consolidating its banking center network. Over the next two quarters, the company will close and consolidate nine of its 81 branches, adding to a prior consolidation that resulted in ten branches closed by early 2022. This initiative aims to reduce operating expenses by approximately $2.3 million annually, starting in Q1 2022, despite incurring pre-tax charges of around $1.5 million during the transition.

Positive

• Projected annual savings of $2.3 million in operating expenses starting Q1 2022.
• Consolidation aligns with increasing customer adoption of online banking services.

Negative

• Incurred pre-tax charges of approximately $1.5 million during the fourth quarter of 2021 and first quarter of 2022.

TERRE HAUTE, Ind., Sept. 30, 2021 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ: THFF) (the “Company”) today announced plans to optimize its banking center network as part of a plan to improve operating efficiencies and accommodate changing customer preferences.

Subject to regulatory requirements, over the next two quarters the Company will close and consolidate nine of its eighty-one branches. These steps are in addition to the consolidation of its Terre Haute Maple Avenue and Plaza North branches into a new, efficient, state-of-the-art facility at Lafayette Avenue and Fort Harrison Road, which occurred earlier this year, bringing the total number of closed and consolidated branches by the end of the first quarter of 2022 to ten.

“Our customers are rapidly adopting our online banking platforms which provides us with an opportunity to consolidate these branches into other nearby locations while maintaining the high level of service our customers expect,” said First Financial Chairman Norman L. Lowery.

These consolidations which are expected to be completed over the next two quarters, are projected to save the Company approximately $2.3 million per year in operating expenses, commencing in the first quarter of 2022.

The Company expects to record pre-tax charges of approximately $1.5 million during the fourth quarter of 2021 and the first quarter of 2022.

About First Financial Corporation
First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A. and The Morris Plan Company of Terre Haute, Inc. First Financial Bank N.A. is the fifth oldest national bank in the United States, operating 81 banking centers in Illinois, Indiana, Kentucky and Tennessee. The Morris Plan Company of Terre Haute, Inc. is a state industrial chartered financial institution operating one office in Terre Haute, Indiana. Additional information is available at www.first-online.bank.

Investor Contact:
Rodger A. McHargue
Chief Financial Officer
P: 812-238-6334
E: rmchargue@first-online.com 

FAQ

What branch consolidations is First Financial Corporation planning for THFF?

First Financial Corporation plans to close and consolidate nine branches over the next two quarters as part of a strategy to improve operational efficiency.

How much will First Financial save from its branch consolidation?

The company expects to save approximately $2.3 million annually in operating expenses starting in the first quarter of 2022.

What pre-tax charges will THFF incur due to the branch closures?

First Financial Corporation anticipates pre-tax charges of around $1.5 million during the fourth quarter of 2021 and the first quarter of 2022.

Why is First Financial consolidating its branches?

The consolidation is motivated by a shift in customer preferences towards online banking, allowing the company to maintain service levels while reducing costs.