Core Insights - U.S. markets are experiencing an upswing, leading investors to seek opportunities in bank stocks, which have shown positive performance after a dip in April due to tariff plans [1] - The optimism in the banking sector is attributed to trade clarity and interest rate cuts by the Federal Reserve, although inflationary pressures and geopolitical uncertainties remain concerns [1] Bank Stocks with Dividend Increases - Investors are advised to focus on fundamentally solid banks that provide robust dividend yields, which can offer stability and income during volatile times [2] - Four bank stocks highlighted for their recent dividend hikes are ServisFirst Bancshares, Fulton Financial Corporation, First Financial Corporation, and Norwood Financial Corp, all of which have seen their stock prices rally over 3% in the past month [3][9] ServisFirst Bancshares, Inc. (SFBS) - Headquartered in Birmingham, AL, SFBS has $17.6 billion in assets as of September 30, 2025 [7] - Announced a quarterly cash dividend of 38 cents per share, a 13.4% increase from the previous payout, with a dividend yield of 1.84% and a payout ratio of 28% [8] - Zacks Consensus Estimate for 2025 sales indicates a 16.2% year-over-year rise, with earnings expected to grow by 21.8% [12] Fulton Financial Corporation (FULT) - Based in Lancaster, PA, FULT has $32 billion in assets and operates 200 financial centers [13] - Announced a quarterly cash dividend of 19 cents per share, a 5.6% increase, with a dividend yield of 3.57% and a payout ratio of 34% [14] - Zacks Consensus Estimate for 2025 sales suggests an 8.5% increase, while earnings are expected to grow by 11.9% [17] First Financial Corporation (THFF) - Operates in Indiana, Illinois, Kentucky, Tennessee, and Georgia with $5.7 billion in assets [18] - Announced a quarterly cash dividend of 56 cents per share, a 9.8% increase, with a dividend yield of 3.19% and a payout ratio of 33% [19] - Zacks Consensus Estimate for 2025 sales indicates an 18.5% rise, with earnings expected to surge by 64.8% [22] Norwood Financial Corp. (NWFL) - Offers a variety of financial services with $2.4 billion in assets as of September 30, 2025 [23] - Announced a quarterly cash dividend of 32 cents per share, a 3.1% increase, with a dividend yield of 4.18% and a payout ratio of 47% [24] - Zacks Consensus Estimate for 2025 sales indicates a 23.1% rise, while earnings are expected to jump by 60.1% [27] Conclusion on Dividend Stocks - Investing in dividend stocks is seen as a prudent strategy for generating steady income and providing a buffer against market risks, although careful selection is necessary to ensure consistent returns [26]

Core Viewpoint - First Financial Corp. (THFF) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade indicates a positive outlook for First Financial Corp.'s earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - The Zacks Consensus Estimate for First Financial Corp. has increased by 4% over the past three months, with expected earnings of $6.59 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [10].

Core Viewpoint - First Financial Corporation has announced its acquisition of CedarStone Financial, Inc. for $19.12 per share, totaling an aggregate value of $25 million, which will enhance First Financial's presence in the Nashville market [1][4][5]. Group 1: Transaction Details - First Financial will acquire CedarStone at a price of $19.12 per share, amounting to $25 million for the entire transaction [1]. - The merger will result in CedarStone Bank merging into First Financial Bank, a wholly owned subsidiary of First Financial [1]. - The transaction is expected to close in the first quarter of 2026, pending regulatory and stockholder approvals [5]. Group 2: Company Profiles - CedarStone, based in Lebanon, Tennessee, has approximately $358 million in assets and operates three branches in Tennessee, serving Lebanon, Mount Juliet, and Nashville [2]. - First Financial, headquartered in Terre Haute, Indiana, has assets of approximately $5.7 billion and operates 79 banking centers across five states. Post-merger, the combined assets are expected to reach approximately $6.1 billion [3]. Group 3: Leadership Comments - Norman D. Lowery, President and CEO of First Financial, expressed excitement about the acquisition, highlighting the opportunity to expand in the Nashville market and maintain CedarStone's commitment to customer relationships [4]. - Bob McDonald, President and CEO of CedarStone, noted the benefits for stakeholders and customers, emphasizing stability and growth opportunities from the merger with First Financial [5].

Financial Performance - Net income for Q3 2025 was $20.8 million, up from $8.7 million in Q3 2024, with basic earnings per share increasing to $1.75 from $0.74[120] - For the nine months ended September 30, 2025, net income reached $57.8 million, compared to $31.0 million for the same period in 2024, with basic earnings per share rising to $4.87 from $2.63[120] - Non-interest income for the nine months ended September 30, 2025, was $32.0 million, up from $30.6 million in the same period in 2024[125] Return Ratios - Return on average assets and return on average equity for Q3 2025 were 1.48% and 13.82%, respectively, compared to 0.64% and 6.39% in Q3 2024[120] - Return on average assets for Q3 2025 was 1.48%, compared to 0.64% in Q3 2024, while return on average equity improved to 13.82% from 6.39%[120] Interest Income - Net interest income for Q3 2025 increased by $7.4 million to $54.6 million, with a net interest margin of 4.25%, up from 3.78% in Q3 2024[123] - Net interest income increased by $7.4 million to $54.6 million for the three months ended September 30, 2025, with a net interest margin of 4.25%, a 12.42% increase year-over-year[123] - The net interest margin for the nine months ended September 30, 2025 was 4.17%, an increase from 3.63% in the same period of 2024[123] Credit Quality - Non-performing loans rose to $19.3 million at September 30, 2025, a 36.3% increase from $14.1 million in September 2024[129] - The provision for credit losses for Q3 2025 was $2.0 million, down from $9.4 million in Q3 2024, with net charge-offs decreasing to $1.6 million from $4.6 million[127] - The non-performing asset ratio is 0.39% of total assets, with net charge-offs at 0.17% to average loans and leases, indicating strong credit performance[122] Expenses - Non-interest expenses for Q3 2025 were $38.0 million, a slight decrease from $38.6 million in Q3 2024, while total non-interest expenses for the nine months increased to $113.1 million[126] - Non-interest expenses for the quarter ended September 30, 2025, were $38.0 million, a decrease from $38.6 million in the same period in 2024[126] Liquidity and Capital - Liquidity remains strong, with cash and available-for-sale securities representing approximately 22.5% of total assets as of September 30, 2025[121] - The Corporation has $203.1 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, ensuring adequate liquidity[137] - The Corporation's total capital ratios as of September 30, 2025, were 14.15% for total risk-based capital and 13.12% for common equity tier 1 capital, both exceeding regulatory requirements[144] - The Corporation's total risk-based capital ratio was 14.15% as of September 30, 2025, up from 13.46% at December 31, 2024[144] Allowance for Credit Losses - The allowance for credit losses was $47.4 million as of September 30, 2025, compared to $46.7 million at December 31, 2024[117] - The allowance for credit losses was $47.4 million as of September 30, 2025, compared to $46.7 million at December 31, 2024[117] Loans and Deposits - Loans net of deferred loan costs increased by $130 million to $4.0 billion compared to December 31, 2024[138] - Deposits decreased by 2.2% to $4.6 billion as of September 30, 2025, compared to December 31, 2024[138]

Core Insights - First Financial Corporation (THFF) has shown strong performance over the past year, with a nearly 30% increase in share value [1] - The acquisition of SimplyBank has positively impacted the company's financial results, as demonstrated by solid Q3 performance [1] Company Performance - The company's shares have gained nearly 30% over the past year, indicating strong market performance [1] - Q3 results reflect the successful integration and performance of SimplyBank, contributing to shareholder value [1] Analyst Perspective - The analysis is based on over fifteen years of experience in making contrarian investment decisions and identifying turnaround stories [1]

Group 1 - First Financial Corporation (THFF) shares have increased nearly 30% over the past year, indicating strong performance [1] - The acquisition of SimplyBank has positively impacted shareholders, reflected in solid Q3 results [1] - The article emphasizes a contrarian investment approach based on macro views and stock-specific turnaround stories [1]

Core Insights - First Financial Corp. reported quarterly earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.61 per share, and showing a significant increase from $0.74 per share a year ago, resulting in an earnings surprise of +8.70% [1] - The company achieved revenues of $65.75 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.42% and up from $58.39 million year-over-year [2] - First Financial Corp. has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.61, with expected revenues of $65.4 million, and for the current fiscal year, the EPS estimate is $6.34 on revenues of $255 million [7] Industry Context - The Banks - Midwest industry, to which First Financial Corp. belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Exhibit 99.1 News Release FIRST FINANCIAL CORPORATION One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000 First Financial Corporation Reports Third Quarter Results Terre Haute, Indiana, October 28, 2025 – First Financial Corporation (NASDAQ:THFF) today announced results for the third quarter of 2025. The Corporation further reported results for the nine months ended September 30, 2025: 1 Non-GAAP financial measure that Management believes is useful for investors and management to understand ...

Company Overview - First Financial Corp. (THFF) shares increased by 5.1% to close at $54.18, following a period of 11.8% loss over the past four weeks, indicating a significant recovery in stock performance [1][2] - The stock's rise was supported by a notable insider purchase by Director James McDonald, which enhanced investor confidence [2] Earnings Expectations - First Financial is projected to report quarterly earnings of $1.61 per share, reflecting a year-over-year increase of 117.6% [3] - Expected revenues for the upcoming report are $64.2 million, representing a 10% increase from the same quarter last year [3] Market Sentiment - The consensus EPS estimate for First Financial has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4] Industry Context - First Financial Corp. operates within the Zacks Banks - Midwest industry, which is experiencing improved sentiment towards smaller financial institutions following strong results from larger peers [2][4] - Lakeland Financial, another company in the same industry, has also maintained a Zacks Rank of 3 (Hold) and is expected to report an EPS of $1.02, a 12.1% increase year-over-year [5]

Core Viewpoint - First Financial Corporation Indiana (THFF) has agreed to acquire BankFinancial Corporation (BFIN) in an all-stock transaction valued at approximately $142 million, aiming to strengthen its presence in the Chicagoland market and enhance service offerings [1][7]. Financial Details - BankFinancial shareholders will receive 0.48 shares of First Financial for each share they hold, with the transaction unanimously approved by both companies' boards. The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals and shareholder consent [2]. Integration Plans - Upon completion, BankFinancial's consumer and wealth management services, along with selected commercial credit lines, will be integrated into First Financial's existing operations. All BankFinancial employees will transition to First Financial to maintain client relationships and community engagement [3]. Strategic Rationale - The acquisition will add 18 BankFinancial centers to First Financial's network, expanding its presence in the Chicagoland area and complementing its existing branch network across Ohio, Indiana, Kentucky, and Illinois [4][7]. Growth Strategy - This transaction aligns with THFF's broader Midwest growth strategy, which includes a prior agreement to acquire Westfield Bank in Northeast Ohio, and ongoing expansion efforts into Chicago, Cleveland, and Grand Rapids [5]. Leadership Statement - Archie Brown, president and CEO of First Financial, emphasized that the addition of BankFinancial's retail financial centers supports the Midwest growth strategy and provides Chicago clients with a broader range of banking and specialty solutions [6]. Market Performance - Over the past year, First Financial shares have increased by 39.4%, outperforming the industry's rise of 20.5% [6].