Terre Haute-based First Financial Corp. has announced that its board of directors has approved the merger of two of its subsidiaries. The Morris Plan Co. of Terre Haute into First Financial Bank N.A.
The merger will be effective on December 31, subject to federal regulatory approval. The merger will result in increased efficiencies, which will be recognized beginning in the first quarter of 2022, said Rodger A. McHargue, chief financial officer of the bank.
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.
Morris Plan was one of the original “Morris Plans.” This refers to a banking system that emerged early in the 20th century. It was the brainchild of Virginia attorney Arthur J. Morris, who wanted to help people of low- to moderate-income get loans.
Borrowers were asked to provide proof of earnings from a steady job and two character references. As traditional banks became lenders, primarily through credit cards, Morris Plan banks slowly disappeared.