First Financial Blames Tax Bill For Profit Dip

(photo courtesy Southwest Indiana Chamber)

Terre Haute-based First Financial Corp. (Nasdaq: THFF) is reporting full-year net income of $29.1 million in 2017, down from $38.4 million the previous year. The parent of First Financial Bank says the recently-passed Tax Cuts and Jobs Act is the primary reason for the profit decrease.

First Financial is also reporting fourth quarter net income of $2.6 million, down from $8.3 million during the same quarter in 2016. The bank says tax bill led to a revaluation of its deferred tax assets, which resulted in a non-cash tax expense of $6.3 million.

"We are pleased with our 2017 performance. During 2017 we continued to experience loan growth, which is driving increased interest income," said Norman Lowery, chief executive officer of First Financial Corp. "Similar to others in our industry, our fourth quarter and year end results were negatively impacted by the Tax Cuts and Jobs Act, which was signed into law in late December."

First Financial says, if the tax bill had not been passed, its fourth quarter net income would have been $8.9 million and it’s year-end net income would have been $35.4 million.

You can view the full earnings report by clicking here.