Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that m ...

Core Viewpoint - First Financial (NASDAQ: THFF) has shown strong performance with a 35% increase in share price over the past year, attributed to its acquisition of SimplyBank which has significantly improved its funding profile and expanded its net interest margin [1] Company Performance - The acquisition of SimplyBank has led to a meaningful enhancement in First Financial's funding profile [1] - The expansion of net interest margin has been very strong following the acquisition [1] Investment Insights - The article reflects a contrarian investment approach based on macro views and stock-specific turnaround stories aimed at achieving outsized returns with a favorable risk/reward profile [1]

Financial Performance - Net income for Q1 2025 was $18.4 million, up from $10.9 million in Q1 2024, with basic earnings per share increasing to $1.55 from $0.93[111] - Non-interest income for Q1 2025 was $10.5 million, an increase from $9.4 million in Q1 2024[116] - Non-interest expenses for Q1 2025 were $36.8 million, up from $33.4 million in Q1 2023, reflecting an increase due to acquisition-related operating expenses[117] Interest Income and Margin - Net interest income rose by $13.1 million to $52.0 million in Q1 2025, with a net interest margin of 4.11%, a 16.44% increase from 3.53% in Q1 2024[114] - Net interest income rose by $13.1 million to $52.0 million in Q1 2025, compared to $38.9 million in Q1 2024, reflecting a net interest margin increase to 4.11% from 3.53%[114] - Given a 100 basis point increase in interest rates, net interest income is projected to decrease by 1.41% over the next 12 months[127] Credit Quality - Non-performing loans decreased to $10.2 million at March 31, 2025, down 58.0% from $24.3 million in Q1 2024[120] - The allowance for credit losses was $46.8 million as of March 31, 2025, compared to $46.7 million at December 31, 2024, with a qualitative reserve increase of $363 thousand[108] - The provision for credit losses for Q1 2025 was $2.0 million, compared to $1.8 million in Q1 2024, with net charge-offs of $1.8 million versus $1.5 million in the same period[118] - The non-performing asset ratio was 0.25% of total assets as of March 31, 2025, with net charge-offs at 0.19% of average loans and leases[112] - The ratio of the allowance for credit losses to non-performing loans was 460.6% as of March 31, 2025, compared to 351.4% at December 31, 2024[121] Liquidity and Capital - Liquidity remains strong, with cash and available-for-sale securities representing approximately 22.9% of total assets as of March 31, 2025[112] - The Corporation anticipates $35.8 million in securities to be called within the next 12 months, contributing to liquidity management[130] - The Corporation anticipates $114.2 million in principal payments from mortgage-backed and other securities over the next 12 months, ensuring adequate liquidity[130] - The Corporation's common equity tier 1 capital ratio was 12.70% as of March 31, 2025, up from 12.43% at December 31, 2024, exceeding regulatory requirements[137] - The Corporation's Tier 1 capital ratio was 12.70% as of March 31, 2025, up from 12.43% at December 31, 2024, exceeding regulatory requirements[137] Taxation - The effective income tax rate for Q1 2025 was 22.59%, up from 16.79% in Q1 2024, driven by significantly higher pretax income[119] - The effective income tax rate rose to 22.59% in Q1 2025 compared to 16.79% in Q1 2024, driven by significantly higher pretax income[119] Loan and Deposit Trends - Total loans increased by $17 million to $3.9 billion as of March 31, 2025, while deposits decreased by 1.7% to $4.6 billion[131] - Total loans net of deferred loan costs increased by $17 million to $3.9 billion compared to December 31, 2024, while deposits decreased by 1.7% to $4.6 billion[131] - Shareholders' equity increased by 4.17% or $22.9 million, raising book value per share to $48.26 from $46.36[131] Management Commentary - Management believes the allowance for credit losses is adequate based on current portfolio analysis and economic conditions[109]

Company Overview - First Financial Corp. (THFF) is based in Terre Haute and operates in the Finance sector [3] - The stock has experienced a price change of 6.95% since the beginning of the year [3] Dividend Information - First Financial Corp. currently pays a dividend of $0.51 per share, resulting in a dividend yield of 4.13% [3] - The average dividend yield for the Banks - Midwest industry is 3.28%, while the S&P 500's yield is 1.63% [3] - The company's annualized dividend of $2.04 has increased by 51.1% compared to the previous year [4] - Over the past 5 years, First Financial Corp. has raised its dividend 4 times, averaging an annual increase of 15.55% [4] - The current payout ratio is 44%, indicating that the company pays out 44% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for earnings in 2025 is $6.02 per share, reflecting an expected increase of 50.50% from the previous year [5] Investment Appeal - First Financial Corp. is considered an attractive dividend investment and a compelling opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]

Core Insights - First Financial Corp. reported revenue of $62.49 million for the quarter ended March 2025, reflecting a year-over-year increase of 29.2% [1] - The earnings per share (EPS) for the quarter was $1.55, up from $0.93 in the same quarter last year, representing a surprise of +20.16% over the consensus estimate of $1.29 [1] - The reported revenue exceeded the Zacks Consensus Estimate by +4.84% [1] Financial Metrics - Net Interest Margin was reported at 4.1%, surpassing the average estimate of 3.9% based on two analysts [4] - The Efficiency Ratio stood at 57.5%, better than the average estimate of 63% based on two analysts [4] - Total Non-Interest Income was $10.51 million, slightly below the average estimate of $10.85 million based on two analysts [4] - Gain on sale of mortgage loans was $0.23 million, exceeding the average estimate of $0.20 million based on two analysts [4] Stock Performance - Over the past month, shares of First Financial Corp. have returned -13.5%, compared to a -8.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Group 1 - First Financial Corp. reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.29 per share, and showing an increase from $0.93 per share a year ago, resulting in an earnings surprise of 20.16% [1] - The company achieved revenues of $62.49 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.84%, compared to $48.35 million in the same quarter last year [2] - Over the last four quarters, First Financial Corp. has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2 - The stock has lost about 5% since the beginning of the year, while the S&P 500 has declined by 12.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for First Financial Corp. is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3 - The current consensus EPS estimate for the upcoming quarter is $1.38 on revenues of $61.2 million, and for the current fiscal year, it is $5.56 on revenues of $245.1 million [7] - The Zacks Industry Rank for Banks - Midwest is in the top 13% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Loans and Deposits - Average total loans for Q1 2025 were $3.84 billion, an increase of $662 million or 20.80% year-over-year [5]. - Total loans outstanding as of March 31, 2025, were $3.85 billion, up $662 million or 20.74% from the same period in 2024 [6]. - Average total deposits for Q1 2025 were $4.65 billion, an increase of $605 million or 14.95% year-over-year [7]. Financial Performance - Net income for Q1 2025 was $18.4 million, compared to $10.9 million for the same period in 2024 [9]. - Net interest income for Q1 2025 was a record $52.0 million, an increase of $13.1 million or 33.5% year-over-year [13]. - The net interest margin for Q1 2025 was 4.11%, compared to 3.53% for the same period in 2024 [14]. - Basic and diluted earnings per share increased to $1.55 in Q1 2025, up from $0.93 in Q1 2024, representing a growth of 66.7% [31]. - Non-interest income for Q1 2025 was $10,511 thousand, an increase from $9,431 thousand in Q1 2024, reflecting a growth of 11.5% [31]. Asset Quality - Nonperforming loans as of March 31, 2025, were $10.2 million, down from $24.3 million a year earlier, with a ratio of 0.26% [15]. - Total nonperforming assets decreased to $13,631 thousand as of March 31, 2025, down from $16,719 thousand at December 31, 2024, indicating a reduction of 18.5% [28]. - The provision for credit losses increased to $1,950 thousand in Q1 2025, compared to $1,800 thousand in Q1 2024, marking an 8.3% rise [31]. Equity and Valuation - Shareholders' equity at March 31, 2025, was $571.9 million, up from $520.8 million on March 31, 2024 [10]. - Book value per share increased to $48.26 as of March 31, 2025, from $44.08 a year earlier, representing a 9.49% increase [11]. Efficiency and Expenses - The efficiency ratio improved to 57.54% for Q1 2025, down from 67.21% for the same period in 2024 [21]. - Total non-interest expense rose to $36,759 thousand in Q1 2025, compared to $33,422 thousand in Q1 2024, indicating an increase of 9.0% [31]. Assets and Liabilities - Total assets as of March 31, 2025, were $5,549,094 thousand, slightly down from $5,560,348 thousand at December 31, 2024 [30]. - Total liabilities decreased to $4,977,149 thousand as of March 31, 2025, from $5,011,307 thousand at December 31, 2024, a decline of 0.7% [30]. Interest Income - Total interest income increased to $73,032 thousand in Q1 2025, up from $59,403 thousand in Q1 2024, representing a growth of 22.9% [31]. - Net interest income after provision for loan losses rose to $50,025 thousand in Q1 2025, compared to $37,120 thousand in Q1 2024, reflecting a 34.6% increase [31].

Core Viewpoint - First Financial Corporation reported strong financial results for the first quarter of 2025, highlighting significant growth in loans and deposits, record net interest income, and improved profitability metrics compared to the same period in 2024 [1][5]. Financial Performance - Average total loans increased to $3.84 billion, up $662 million or 20.80% year-over-year, driven by the acquisition of SimplyBank and organic growth [3][4]. - Total loans outstanding reached $3.85 billion, reflecting a similar year-over-year increase of $662 million or 20.74% [4]. - Average total deposits rose to $4.65 billion, an increase of $605 million or 14.95% year-over-year, primarily due to the SimplyBank acquisition [5][6]. - Total deposits were $4.64 billion, up from $4.11 billion a year earlier [6]. Profitability Metrics - Net income for the first quarter was $18.4 million, compared to $10.9 million in the same period of 2024, with diluted net income per share increasing to $1.55 from $0.93 [9]. - Return on average assets improved to 1.34% from 0.91% year-over-year [9][27]. - Net interest income reached a record $52.0 million, up $13.1 million or 33.5% from the previous year [12]. - The net interest margin increased to 4.11% from 3.53% year-over-year [13]. Asset Quality - Nonperforming loans decreased to $10.2 million, down from $24.3 million a year earlier, with the ratio of nonperforming loans to total loans at 0.26% [14]. - The allowance for credit losses was $46.8 million, representing 1.22% of total loans, slightly down from 1.25% a year earlier [17]. Shareholder Information - Shareholders' equity increased to $571.9 million from $520.8 million year-over-year [7]. - Book value per share rose to $48.26, an increase of $4.18 or 9.49% from the previous year [10]. - The company declared a quarterly dividend of $0.51 per share [7]. Efficiency and Expenses - The efficiency ratio improved to 57.54% from 67.21% year-over-year, indicating better cost management [20]. - Non-interest expense for the quarter was $36.8 million, compared to $33.4 million in the same period of 2024 [19].

Company Overview - First Financial Corp. (THFF) is headquartered in Terre Haute and operates in the Finance sector [3] - The stock has experienced a price change of -6.78% since the beginning of the year [3] Dividend Information - First Financial Corp. currently pays a dividend of $0.51 per share, resulting in a dividend yield of 4.74% [3] - The dividend yield of the Banks - Midwest industry is 3.6%, while the S&P 500's yield is 1.64% [3] - The company's annualized dividend of $2.04 has increased by 51.1% from the previous year [4] - Over the last 5 years, First Financial Corp. has raised its dividend 4 times, averaging an annual increase of 15.55% [4] - The current payout ratio is 45%, indicating that the company pays out 45% of its trailing 12-month EPS as dividends [4] Earnings Growth - First Financial Corp. is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $5.56 per share, reflecting a year-over-year growth rate of 39% [5] Investment Opportunity - First Financial Corp. is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7]

Group 1 - First Financial Corporation (NASDAQ: THFF) has recently outperformed expectations, with a market capitalization of approximately $582 million and operations based in Indiana [1] - The company focuses on cash flow and aims to identify firms that generate it, leading to potential value and growth opportunities in the oil and natural gas sector [1] Group 2 - The investment service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2] - A two-week free trial is available for new subscribers to explore the oil and gas investment opportunities [3]