Sterne Agee Maintains Buy on First Financial

Sterne Agee reiterates its Buy rating on First Financial

as NIM pressure is offset by lower loan loss provision. Sterne Agee says, "We continue to view FFIN as qualitatively one of the best banks in the country; however, given the current premium valuation we believe meaningful upside to current levels is limited. Aside from more NIM pressure than expected, 4Q11 results were the usual strong performance from FFIN (1.73% ROA), noting that the Company is one of the most consistent performers in the industry. We are trimming our FY12E and FY13E by a penny each to $2.21 and $2.31 per share, respectively. Going forward we continue to believe NIM pressure will be a modest drag on profitability, but point out the loan loss provision could be lower in the next two years." FFIN closed at $34.09 a share on Friday.