First Financial Corporation Branch Optimization Plan

Rhea-AI Summary

First Financial Corporation (NASDAQ: THFF) announced plans to enhance operational efficiency by closing and consolidating seven of its 72 branches due to increasing customer preference for online banking. This strategic move aims to save approximately $1.5 million annually in operating expenses, effective from Q1 2023. The company anticipates pre-tax charges of about $1.5 million during Q4 2022 and Q1 2023. The consolidations are expected to be completed by early 2023, aligning with regulatory requirements.

Positive

• Projected annual savings of $1.5 million in operating expenses starting Q1 2023.
• Move aligns with customer preference for online banking, optimizing branch network.

Negative

• Expected pre-tax charges of approximately $1.5 million during Q4 2022 and Q1 2023.

TERRE HAUTE, Ind., Oct. 31, 2022 (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 seven of its seventy-two branches.

“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 in the first quarter 2023, are projected to save the Company approximately $1.5 million per year in operating expenses, commencing in the first quarter of 2023.

The Company expects to record pre-tax charges of approximately $1.5 million during the fourth quarter of 2022 and the first quarter of 2023.

About First Financial Corporation
First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A. First Financial Bank N.A. is the fifth oldest national bank in the United States, operating 72 banking centers in Illinois, Indiana, Kentucky and Tennessee. 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 is the recent announcement from First Financial Corporation regarding branch closures?

First Financial Corporation plans to close and consolidate seven branches to improve operational efficiency, projected to save $1.5 million annually.

How much will First Financial save from closing branches?

The company expects to save approximately $1.5 million per year in operating expenses starting from Q1 2023.

When will the branch consolidations be completed for First Financial Corporation?

The branch consolidations are expected to be completed in the first quarter of 2023.

What are the anticipated charges related to the branch closures for THFF?

First Financial Corporation expects to incur pre-tax charges of about $1.5 million during Q4 2022 and Q1 2023.