First Financial (THFF)

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First Financial to Acquire BankFinancial, Expands Chicago Presence
ZACKS· 2025-08-14 16:06
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].
First Financial (THFF) - 2025 Q2 - Quarterly Report
2025-08-07 13:22
PART I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements detail the Corporation's financial position and performance [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Key Financial Metrics | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets (in thousands):** | | | | Cash and due from banks | $97,265 | $93,526 | | Securities available-for-sale | $1,169,956 | $1,195,990 | | Total Loans, net | $3,849,476 | $3,790,409 | | Total Assets | $5,602,969 | $5,560,348 | | **Liabilities (in thousands):** | | | | Total Deposits | $4,662,889 | $4,718,914 | | Short-term borrowings | $149,512 | $187,057 | | Other borrowings | $122,677 | $28,120 | | Total Liabilities | $5,015,301 | $5,011,307 | | **Shareholders' Equity (in thousands):** | | | | Total Shareholders' Equity | $587,668 | $549,041 | [Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Income Statement Summary | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $74,177 | $60,771 | $147,209 | $120,174 | | Total Interest Expense| $21,506 | $21,477 | $42,563 | $41,960 | | Net Interest Income | $52,671 | $39,294 | $104,646 | $78,214 | | Provision for Credit Losses | $1,950 | $2,966 | $3,900 | $4,766 | | Total Non-Interest Income | $10,381 | $9,905 | $20,892 | $19,336 | | Total Non-Interest Expense| $38,276 | $32,651 | $75,035 | $66,073 | | Income Before Income Taxes | $22,826 | $13,582 | $46,603 | $26,711 | | Net Income | $18,586 | $11,369 | $36,992 | $22,293 | | Basic and Diluted EPS | $1.57 | $0.96 | $3.12 | $1.89 | [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Changes in Shareholders' Equity (Three Months Ended June 30, 2025) | Metric (in thousands) | Balance, April 1, 2025 | Net Income | Other Comprehensive Income | Omnibus Equity Incentive Plan | Cash Dividends | Balance, June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Common Stock | $2,019 | — | — | $1 | — | $2,020 | | Additional Capital | $146,159 | — | — | $232 | — | $146,391 | | Retained Earnings | $699,729 | $18,586 | — | — | $(6,044) | $712,271 | | AOCI | $(121,182) | — | $2,948 | — | — | $(118,234) | | Treasury Stock | $(154,780) | — | — | — | — | $(154,780) | | Total | $571,945 | $18,586 | $2,948 | $233 | $(6,044) | $587,668 | Changes in Shareholders' Equity (Six Months Ended June 30, 2025) | Metric (in thousands) | Balance, January 1, 2025 | Net Income | Other Comprehensive Income | Omnibus Equity Incentive Plan | Treasury Shares Purchased | Cash Dividends | Balance, June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Common Stock | $2,018 | — | — | $2 | — | — | $2,020 | | Additional Capital | $145,927 | — | — | $464 | — | — | $146,391 | | Retained Earnings | $687,366 | $36,992 | — | — | — | $(12,087) | $712,271 | | AOCI | $(132,285) | — | $14,051 | — | — | — | $(118,234) | | Treasury Stock | $(153,985) | — | — | — | $(795) | — | $(154,780) | | Total | $549,041 | $36,992 | $14,051 | $466 | $(795) | $(12,087) | $587,668 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities| $33,777 | $21,213 | | Net Cash from Investing Activities| $(18,110) | $(25,201) | | Net Cash from Financing Activities| $(11,928) | $2,302 | | Net Change in Cash and Equivalents| $3,739 | $(1,686) | | Cash and Due from Banks, End of Period | $97,265 | $75,073 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes offer detailed context for the financial statements, covering accounting policies and specific accounts [1. Significant Accounting Policies](index=11&type=section&id=1.%20Significant%20Accounting%20Policies) - The Corporation follows consistent accounting policies for interim and annual financial reporting, operating as a single banking segment[19](index=19&type=chunk) - The Omnibus Equity Incentive Plan awarded **25,134 shares in 2025** and **27,803 shares in 2024**, with grant date values of **$1.2 million** and **$1.0 million** respectively, vesting over three years[20](index=20&type=chunk) - The acquisition of SimplyBank was completed on July 1, 2024, with its results included in operations from that date[21](index=21&type=chunk) - The Corporation is evaluating the income tax implications of the 'One Big Beautiful Bill' (signed July 4, 2025) but does not expect a material impact on its financial statements[22](index=22&type=chunk) [2. New accounting standards](index=11&type=section&id=2.%20New%20accounting%20standards) - Adopted ASU 2023-02 (Investments Equity Method and Joint Ventures) on January 1, 2024, resulting in a **$19 million increase in other assets**, a **$21 million increase in other liabilities**, and a **$1.7 million decrease in retained earnings**[23](index=23&type=chunk) - Adopted ASU 2023-07 (Segment Reporting) on January 1, 2024, for fiscal year activity, with interim period application beginning January 1, 2025[24](index=24&type=chunk) - Adopted ASU 2023-09 (Income Taxes) on January 1, 2025, requiring new income tax disclosures in 2025 annual filings[26](index=26&type=chunk) - Currently assessing ASU 2024-03 (Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures), effective for fiscal years beginning after December 15, 2026, for its effect on consolidated financial statements[27](index=27&type=chunk) [3. Allowance for Credit Losses](index=14&type=section&id=3.%20Allowance%20for%20Credit%20Losses) Allowance for Credit Losses Activity | Allowance for Credit Losses (in thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Beginning balance (3 months) | $46,835 | $40,045 | | Provision for credit losses (3 months) | $1,950 | $2,966 | | Loans charged-off (3 months) | $(2,928) | $(6,091) | | Recoveries (3 months) | $1,230 | $1,414 | | Ending Balance (3 months) | $47,087 | $38,334 | | Beginning balance (6 months) | $46,732 | $39,767 | | Provision for credit losses (6 months) | $3,900 | $4,766 | | Loans charged-off (6 months) | $(6,169) | $(9,283) | | Recoveries (6 months) | $2,624 | $3,084 | | Ending Balance (6 months) | $47,087 | $38,334 | Non-Performing Loans | Non-Performing Loans (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Loans Past Due Over 90 Days Still Accruing | $1,969 | $1,888 | | Nonaccrual | $7,930 | $11,479 | | Nonaccrual With No Allowance For Credit Loss | $1,904 | $4,434 | | TOTAL | $11,803 | $17,801 | - Loan modifications for borrowers experiencing financial difficulty primarily involved interest rate reductions and term extensions, with **no payment defaults on modified loans** during the twelve months ended June 30, 2025[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) - Credit quality indicators categorize loans into 'Special Mention', 'Substandard', and 'Doubtful' based on borrower's ability to service debt, collateral, and repayment prospects[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) [4. Securities](index=24&type=section&id=4.%20Securities) Securities Available-for-Sale | Securities Available-for-Sale (in thousands) | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | Amortized Cost (Dec 31, 2024) | Fair Value (Dec 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | U.S. Government agencies | $86,126 | $76,555 | $90,649 | $78,982 | | Mortgage Backed Securities - residential | $604,479 | $532,014 | $630,556 | $541,320 | | Collateralized mortgage obligations | $181,868 | $157,319 | $190,552 | $163,026 | | State and municipal obligations | $390,947 | $352,099 | $394,696 | $360,328 | | TOTAL | $1,317,255 | $1,169,956 | $1,361,797 | $1,195,990 | Contractual Maturities | Contractual Maturities (in thousands) | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | | :--- | :--- | :--- | | Due in one year or less | $11,882 | $11,793 | | Due after one but within five years | $45,341 | $44,025 | | Due after five but within ten years | $119,992 | $116,682 | | Due after ten years | $340,767 | $295,589 | | Mortgage-backed securities and CMOs | $799,273 | $701,867 | | TOTAL | $1,317,255 | $1,169,956 | - Gross unrealized losses on investment securities **decreased to $150.65 million** at June 30, 2025, from $168.93 million at December 31, 2024, primarily due to market value adjustments reflecting interest rate changes, not creditworthiness[57](index=57&type=chunk) [5. Qualified Affordable Housing Project Investments](index=27&type=section&id=5.%20Qualified%20Affordable%20Housing%20Project%20Investments) Investment Summary | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment balance | $40,000 | $27,200 | | Unfunded commitments | $24,900 | $17,700 | Expense/Benefit Summary | Expense/Benefit (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Amortization expense (noninterest) | $31 | $211 | | Amortization expense (income tax) | $1,400 | $847 | | Tax credits and other benefits | $1,800 | $1,600 | [6. Fair Value](index=28&type=section&id=6.%20Fair%20Value) - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than Level 1 prices), and **Level 3** (significant unobservable inputs)[61](index=61&type=chunk)[62](index=62&type=chunk) - Other real estate owned (OREO) is valued at Level 3, with a fair value of **$383 thousand** at June 30, 2025, reduced by $142 thousand for fair value adjustment[71](index=71&type=chunk)[72](index=72&type=chunk) Fair Value Measurements | Fair Value Measurements (in thousands) | Level 1 (June 30, 2025) | Level 2 (June 30, 2025) | Level 3 (June 30, 2025) | Total (June 30, 2025) | | :--- | :--- | :--- | :--- | :--- | | U.S. Government agencies | $— | $76,555 | $— | $76,555 | | Mortgage Backed Securities-residential | $— | $532,014 | $— | $532,014 | | Collateralized debt obligations | $— | $— | $2,909 | $2,909 | | TOTAL | $— | $1,167,047 | $2,909 | $1,169,956 | Level 3 Fair Value Measurements | Level 3 Fair Value Measurements (in thousands) | Fair Value (June 30, 2025) | Valuation Technique | Unobservable Input | Range | | :--- | :--- | :--- | :--- | :--- | | Collateralized debt obligations | $2,909 | Discounted cash flow| Discount rate | 6.26 %| | Collateral dependent loans | $2,918 | Discounted cash flow| Discount rate for age of appraisal and market conditions | 30.00%-100.00 %| [7. Borrowings](index=33&type=section&id=7.%20Borrowings) - FHLB advances, totaling **$106.0 million** at June 30, 2025, are secured by eligible securities and a blanket pledge on real estate loan collateral[79](index=79&type=chunk) Short-term Borrowings | Short-term Borrowings (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Federal Funds Purchased | $118,500 | $154,250 | | Repurchase Agreements | $31,012 | $32,807 | | TOTAL | $149,512 | $187,057 | Other Borrowings | Other Borrowings (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | FHLB advances | $106,010 | $7,287 | | Notes payable | $16,667 | $20,833 | | TOTAL | $122,677 | $28,120 | Aggregate Minimum Annual Retirements of Other Borrowings | Aggregate Minimum Annual Retirements of Other Borrowings (in thousands) | | :--- | | Twelve Months Ended June 30, 2026 | $105,053 | | Twelve Months Ended June 30, 2027 | $16,667 | | Twelve Months Ended June 30, 2028 | $957 | | TOTAL | $122,677 | [8. Components of Net Periodic Benefit Cost](index=35&type=section&id=8.%20Components%20of%20Net%20Periodic%20Benefit%20Cost) - Employer contributions of **$357 thousand** have been made to the Pension Plan and **$134 thousand** to the Post Retirement Health Benefits plan in the first six months of 2025[81](index=81&type=chunk) Net Periodic Benefit Cost | Net Periodic Benefit Cost (in thousands) | Pension Benefits (3M 2025) | Post-Retirement Health Benefits (3M 2025) | Pension Benefits (6M 2025) | Post-Retirement Health Benefits (6M 2025) | | :--- | :--- | :--- | :--- | :--- | | Service cost | $107 | $3 | $215 | $6 | | Interest cost | $1,017 | $32 | $2,033 | $64 | | Expected return on plan assets | $(1,093) | — | $(2,187) | — | | Net amortization of net (gain) loss | — | $(39) | — | $(78) | | Net Periodic Benefit Cost | $31 | $(4) | $61 | $(8) | [9. Revenue from Contracts with Customers](index=36&type=section&id=9.%20Revenue%20from%20Contracts%20with%20Customers) - Revenue recognition for service charges on deposits, trust and financial services, and interchange income is detailed, with transaction-based fees recognized at execution and maintenance fees over time[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) Non-Interest Income | Non-Interest Income (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Service charges on deposits and debit card fee income | $7,554 | $6,730 | $15,139 | $13,437 | | Trust and financial services | $1,490 | $1,318 | $2,883 | $2,652 | | Interchange income | $180 | $135 | $394 | $314 | | Net gains on sales of loans | $430 | $299 | $655 | $475 | | Total non-interest income | $10,381 | $9,905 | $20,892 | $19,336 | [10. Accumulated Other Comprehensive Income (Loss)](index=37&type=section&id=10.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) - Reclassifications from AOCI for the six months ended June 30, 2025, included **$(3) thousand** for net securities gains (losses) and **$(7) thousand** for amortization of retirement plan items, net of tax[91](index=91&type=chunk) AOCI Components (Three Months Ended June 30, 2025) | AOCI Components (in thousands) | Beginning Balance (April 1, 2025) | Net Current Period OCI (Loss) | Ending Balance (June 30, 2025) | | :--- | :--- | :--- | :--- | | Unrealized gains and (Losses) on available-for-sale Securities | $(116,707) | $2,946 | $(113,761) | | Retirement plans | $(4,475) | $2 | $(4,473) | | TOTAL | $(121,182) | $2,948 | $(118,234) | AOCI Components (Six Months Ended June 30, 2025) | AOCI Components (in thousands) | Beginning Balance (January 1, 2025) | Net Current Period OCI (Loss) | Ending Balance (June 30, 2025) | | :--- | :--- | :--- | :--- | | Unrealized gains and (Losses) on available-for-sale Securities | $(127,807) | $14,046 | $(113,761) | | Retirement plans | $(4,478) | $5 | $(4,473) | | TOTAL | $(132,285) | $14,051 | $(118,234) | [11. Leases](index=40&type=section&id=11.%20Leases) - At June 30, 2025, the weighted average remaining lease term for operating leases was **10.8 years**, and the weighted average discount rate was **3.23%**[94](index=94&type=chunk) Lease Information | Lease Information (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Lease liabilities | $7,347 | $7,829 | | Right-of-use assets | $7,215 | $7,725 | Lease Costs | Lease Costs (in thousands) | Six Months Ended June 30, 2025 | | :--- | :--- | | Operating lease cost | $711 | | Short-term lease cost | $35 | | Variable lease cost | $3 | | Total lease cost | $749 | [12. Acquisitions](index=41&type=section&id=12.%20Acquisitions) - The Corporation completed the acquisition of SimplyBank on July 1, 2024, for approximately **$73.4 million in cash**, resulting in **$11.2 million in goodwill**[98](index=98&type=chunk)[99](index=99&type=chunk) SimplyBank Acquisition | SimplyBank Acquisition (in thousands) | As Adjusted | | :--- | :--- | | Cash consideration | $73,400 | | Total assets acquired | $697,914 | | Total liabilities assumed | $635,758 | | Net identifiable assets | $62,156 | | Goodwill | $11,244 | Pro Forma Financial Information | Pro Forma Financial Information (in thousands, except per share data) | Year Ended December 31, 2024 | Year Ended December 31, 2023 | | :--- | :--- | :--- | | Net interest income | $188,441 | $196,646 | | Net income | $36,425 | $70,586 | | Basic and diluted earnings per share | $3.08 | $5.91 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20and%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Management analyzes the Corporation's financial performance, condition, and market risk exposure [Critical Accounting Policies](index=44&type=section&id=Critical%20Accounting%20Policies) - Critical accounting policies include determining the **allowance for credit losses (ACL)** and the valuation of goodwill and investment securities, which involve significant management judgment and estimates[108](index=108&type=chunk) - The ACL is estimated using a cohort methodology that tracks historical loss experience since 2008, with annual recalibration of delay periods and portfolio segmentation[109](index=109&type=chunk)[110](index=110&type=chunk)[113](index=113&type=chunk) - Qualitative adjustments are made to ACL estimates for factors not captured in the model, such as changes in lending policies, asset-specific risks, and economic uncertainty, using a two-year reasonable and supportable forecast period[114](index=114&type=chunk)[115](index=115&type=chunk) [Summary of Operating Results](index=46&type=section&id=Summary%20of%20Operating%20Results) - Liquidity remains strong, with cash and available-for-sale securities representing approximately **22.6% of assets** at June 30, 2025, and access to considerable contingent liquidity sources[120](index=120&type=chunk) - Capital ratios are **well above regulatory 'well-capitalized' standards**, and asset quality remains solid with a non-performing asset ratio of **0.23%** of total assets and net charge-offs of **0.18%** to average loans and leases at June 30, 2025[120](index=120&type=chunk) Key Performance Metrics | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $18.6 million | $11.4 million | $37.0 million | $22.3 million | | Basic EPS | $1.57 | $0.96 | $3.12 | $1.89 | | Return on Average Assets | 1.34% | 0.94% | 1.34% | 0.93% | | Return on Average Equity | 12.90% | 8.78% | 12.97% | 8.57% | [Net Interest Income](index=48&type=section&id=Net%20Interest%20Income) - The increase in net interest income and margin was primarily driven by a **28 basis point increase** in yields on net loans and leases for the six months ended June 30, 2025, compared to the same period in 2024[124](index=124&type=chunk) Net Interest Income and Margin | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $52.7 million | $39.3 million | $104.6 million | $78.2 million | | Net Interest Margin | 4.15% | 3.57% | 4.13% | 3.55% | [Non-Interest Income](index=48&type=section&id=Non-Interest%20Income) Non-Interest Income Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Non-Interest Income | $10.4 million | $9.9 million | $20.9 million | $19.3 million | [Non-Interest Expenses](index=48&type=section&id=Non-Interest%20Expenses) - The increase in non-interest expense for both the three and six months ended June 30, 2025, was primarily due to an overall increase in operating expenses resulting from the **SimplyBank acquisition**[126](index=126&type=chunk) Non-Interest Expense Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Non-Interest Expense | $38.3 million | $32.7 million | $75.0 million | $66.1 million | [Allowance for Credit Losses](index=48&type=section&id=Allowance%20for%20Credit%20Losses%20(MD&A%20section)) - Management believes the allowance for credit losses is adequate based on analysis of the current portfolio, including changes in CECL model assumptions, credit quality, economic conditions, and loan composition[127](index=127&type=chunk) Credit Loss Metrics | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $2.0 million | $3.0 million | $3.9 million | $4.8 million | | Net Charge-offs | $1.7 million | $4.7 million | $3.5 million | $6.2 million | Allowance Balances | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ACL | $47,100 | $46,700 | | Allowance for unfunded commitments | $2,200 | $2,100 | [Income Tax Expense](index=48&type=section&id=Income%20Tax%20Expense%20(MD&A%20section)) - The increase in the effective income tax rate for the first six months of 2025 was primarily driven by **significantly higher pretax income** compared to the same period in 2024, while permanent differences remained similar[128](index=128&type=chunk) Effective Tax Rate | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Effective Income Tax Rate | 20.62% | 16.54% | [Non-performing Loans](index=48&type=section&id=Non-performing%20Loans%20(MD&A%20section)) - Non-performing loans **decreased by 26.3% to $9.8 million** at June 30, 2025, from $13.3 million at December 31, 2024, and decreased by 38.5% compared to $15.9 million as of June 30, 2024[129](index=129&type=chunk)[130](index=130&type=chunk) Non-performing Loan Summary | Non-performing Loans (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-accrual loans | $7,878 | $11,479 | | Accruing loans past due over 90 days| $1,917 | $1,821 | | Total Non-performing Loans | $9,795 | $13,300 | | Ratio of ACL to Non-performing Loans| 480.7% | 351.4% | [Interest Rate Sensitivity and Liquidity](index=50&type=section&id=Interest%20Rate%20Sensitivity%20and%20Liquidity) - Interest rate risk is considered the Corporation's most significant market risk, managed by the Asset Liability Committee using earning simulation and market value of equity sensitivity analysis[133](index=133&type=chunk)[134](index=134&type=chunk) - The Corporation maintains strong liquidity with **$11.9 million** in investments maturing in the next 12 months, anticipated principal payments of **$106.8 million** from mortgage-backed securities, and available borrowing capacity of **$227.4 million** with FHLB, **$1.1 billion** with the Federal Reserve, and **$90 million** with correspondent banks[138](index=138&type=chunk) Net Interest Income Sensitivity | Interest Rate Change (Basis Points) | Percentage Change in Net Interest Income (12 months) | Percentage Change in Net Interest Income (24 months) | | :--- | :--- | :--- | | Down 300 | 4.50% | (6.27)% | | Down 200 | 5.35% | (1.17)% | | Down 100 | 3.42% | 0.39% | | Up 100 | (1.60)% | 0.99% | | Up 200 | (6.12)% | (0.93)% | | Up 300 | (9.10)% | (1.37)% | [Financial Condition](index=52&type=section&id=Financial%20Condition) Balance Sheet Summary | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Loans, net (in millions) | $3,900 | $3,841 | +$59M | | Deposits (in millions) | $4,700 | $4,719 | -1.2% | | Other borrowings (in millions) | $122.7 | $28.1 | +$94.6M| | Shareholders' equity (in millions) | $587.7 | $549.0 | +7.04% | | Book value per share | $49.59 | $46.36 | +6.97% | | Accumulated other comprehensive loss (in millions) | $(118.2) | $(132.3) | +$14.1M| [Capital Adequacy](index=53&type=section&id=Capital%20Adequacy) - The Corporation and its subsidiary bank maintain capital ratios **well above the standards required** to be considered 'well-capitalized' under Basel 3 regulatory guidelines[143](index=143&type=chunk)[144](index=144&type=chunk) Capital Ratios | Capital Ratio | Corporation (June 30, 2025) | First Financial Bank (June 30, 2025) | To Be Well Capitalized | | :--- | :--- | :--- | :--- | | Common equity tier 1 capital | 12.86% | 12.80% | 6.50% | | Total risk-based capital | 13.89% | 13.84% | 10.00% | | Tier I risk-based capital | 12.86% | 12.80% | 8.00% | | Tier I leverage capital | 10.91% | 10.40% | 5.00% | [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Corporation's disclosure controls and procedures were effective as of June 30, 2025 - Management, including the principal executive officer and principal financial officer, concluded that the Corporation's disclosure controls and procedures were **effective** as of June 30, 2025[146](index=146&type=chunk) - **No material changes** in the Corporation's internal control over financial reporting occurred during the quarter ended June 30, 2025[146](index=146&type=chunk) PART II. Other Information [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The Corporation reports no material pending legal proceedings outside of routine business litigation - There are **no material pending legal proceedings**, other than routine litigation incidental to the business[148](index=148&type=chunk) - No material legal proceedings involve any director, officer, principal shareholder, or affiliate with adverse interests to the Corporation[148](index=148&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Corporation's 2024 Form 10-K - **No material changes** in risk factors from those disclosed in the Corporation's 2024 Form 10-K[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation has an authorized stock repurchase program with 518,860 shares available for future repurchase - A stock repurchase program authorizes the repurchase of up to **10% of outstanding common stock**, or approximately 1,243,531 shares[151](index=151&type=chunk) - **No shares were purchased** under the program during the quarter ended June 30, 2025[153](index=153&type=chunk) - As of June 30, 2025, **518,860 shares remain available** for purchase under the program[153](index=153&type=chunk) [Item 3. Defaults upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This item is not applicable to the Corporation for the reporting period - Not applicable[154](index=154&type=chunk) [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Corporation for the reporting period - Not applicable[155](index=155&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 plans were adopted, modified, or terminated by any director or officer during the quarter - No Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the three months ended June 30, 2025[156](index=156&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational and governance documents - Includes Amended and Restated Articles of Incorporation and Code of By-Laws[158](index=158&type=chunk) - Lists several Long-Term and Short-Term Incentive Plans, including the 2011 Omnibus Equity Incentive Plan[158](index=158&type=chunk) - Contains employment agreements for Norman D. Lowery, Rodger A. McHargue, Stephen P. Panagouleas, and Mark A. Franklin, effective July 1, 2025[158](index=158&type=chunk) - Includes Sarbanes-Oxley Act 302 and 906 Certifications by the Principal Executive Officer and Principal Financial Officer[158](index=158&type=chunk) [Signatures](index=58&type=section&id=Signatures) The report was officially signed on August 7, 2025, by the President, CEO & Director, and the Treasurer & CFO - The report was signed on **August 7, 2025**[162](index=162&type=chunk) - Signed by **Norman D. Lowery**, President, CEO & Director (Principal Executive Officer)[162](index=162&type=chunk) - Signed by **Rodger A. McHargue**, Treasurer and CFO (Principal Financial Officer)[162](index=162&type=chunk)
First Financial Q2 Review: Solid Results With NIM Momentum
Seeking Alpha· 2025-07-28 09:49
Core Insights - First Financial's shares have increased approximately 19% over the past year, reaching a new 52-week high due to significant improvements in operating returns [1] Group 1 - The company has demonstrated solid performance in the stock market, attributed to its effective operational strategies [1] - The positive trend in operating returns has been consistently highlighted, indicating a favorable outlook for the company's financial health [1]
First Financial Corp. (THFF) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-07-22 17:01
Core Insights - First Financial Corp. reported a revenue of $63.05 million for the quarter ended June 2025, reflecting a year-over-year increase of 28.2% [1] - The earnings per share (EPS) for the quarter was $1.57, up from $0.96 in the same quarter last year, resulting in an EPS surprise of +9.79% against the consensus estimate of $1.43 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $62.3 million by +1.21% [1] Financial Metrics - The net interest margin for First Financial Corp. was 4.2%, slightly above the average estimate of 4.1% from two analysts [4] - The efficiency ratio was reported at 59.4%, better than the average estimate of 60.2% from two analysts [4] - Total non-interest income was $10.38 million, which fell short of the estimated $10.65 million by two analysts [4] - The gain on the sale of mortgage loans was $0.43 million, exceeding the average estimate of $0.35 million from two analysts [4] Stock Performance - Over the past month, shares of First Financial Corp. have returned +6%, compared to a +5.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]
First Financial Corp. (THFF) Q2 Earnings and Revenues Beat Estimates
ZACKS· 2025-07-22 16:15
Core Viewpoint - First Financial Corp. reported quarterly earnings of $1.57 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing a significant increase from $0.96 per share a year ago, indicating strong financial performance [1][2]. Financial Performance - The company achieved revenues of $63.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.21% and up from $49.2 million year-over-year [2]. - Over the last four quarters, First Financial Corp. has exceeded consensus EPS estimates three times and topped revenue estimates four times [2]. Stock Performance - First Financial Corp. shares have increased approximately 20.8% since the beginning of the year, outperforming the S&P 500's gain of 7.2% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.51 on revenues of $63.5 million, and for the current fiscal year, it is $6.02 on revenues of $252.8 million [7]. - The trend of estimate revisions for First Financial Corp. was mixed prior to the earnings release, which may change following the recent results [6]. Industry Context - The Banks - Midwest industry, to which First Financial Corp. belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8].
First Financial (THFF) - 2025 Q2 - Quarterly Results
2025-07-22 14:01
[1. Executive Summary](index=1&type=section&id=1.%20Executive%20Summary) First Financial Corporation reported strong Q2 2025 results with consecutive loan growth, record net interest income, and expanded net interest margin, alongside substantial year-to-date growth in net income and EPS [1.1. Second Quarter 2025 Performance Highlights](index=1&type=section&id=1.1.%20Second%20Quarter%202025%20Performance%20Highlights) First Financial Corporation reported strong Q2 2025 results, marked by its 7th consecutive quarter of loan growth, record net interest income, and an expanded net interest margin. Key financial metrics like net income, diluted EPS, and return on average assets significantly improved year-over-year - CEO Norman D. Lowery expressed satisfaction with the second quarter results, highlighting the **7th consecutive quarter of loan growth**, a **record quarter for net interest income**, and an expanded **net margin of 4.15%**[7](index=7&type=chunk) Second Quarter 2025 Key Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net income | $18.6 million | $11.4 million | +63.16% | | Diluted net income per common share | $1.57 | $0.96 | +63.54% | | Return on average assets | 1.34% | 0.94% | +0.40 pp | | Provision for credit losses | $2.0 million | $3.0 million | -33.33% | | Pre-tax, pre-provision net income | $24.9 million | $16.2 million | +53.70% | [1.2. Year-to-Date June 30, 2025 Performance Highlights](index=1&type=section&id=1.2.%20Year-to-Date%20June%2030%2C%202025%20Performance%20Highlights) For the first six months of 2025, the Corporation also demonstrated substantial growth, with net income and diluted EPS nearly doubling compared to the same period in 2024, alongside improved return on average assets and pre-tax, pre-provision net income Year-to-Date June 30, 2025 Key Financial Highlights (YoY) | Metric | YTD 2025 | YTD 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net income | $37.0 million | $22.3 million | +65.92% | | Diluted net income per common share | $3.12 | $1.89 | +65.08% | | Return on average assets | 1.34% | 0.93% | +0.41 pp | | Provision for credit losses | $3.9 million | $4.8 million | -18.75% | | Pre-tax, pre-provision net income | $50.6 million | $31.2 million | +62.18% | [2. Loan and Deposit Performance](index=1&type=section&id=2.%20Loan%20and%20Deposit%20Performance) The Corporation achieved significant loan growth both organically and through acquisition, while deposits also saw substantial increases, primarily driven by the SimplyBank acquisition [2.1. Loans](index=1&type=section&id=2.1.%20Loans) The Corporation experienced significant loan growth, both organically and through the SimplyBank acquisition. Average total loans increased over 21% year-over-year, and total loans outstanding showed similar robust growth [2.1.1. Average Total Loans](index=1&type=section&id=2.1.1.%20Average%20Total%20Loans) Average total loans for Q2 2025 increased significantly year-over-year, driven by both acquisition and organic growth Average Total Loans | Period | Amount | | :-------------------- | :------------- | | Q2 2025 | $3.88 billion | | Q2 2024 | $3.20 billion | | Linked Quarter (Q1 2025) | $3.84 billion | - Average total loans for Q2 2025 increased by **$680 million or 21.25%** year-over-year[5](index=5&type=chunk). On a linked quarter basis, average loans increased **$35 million or 0.92%**[5](index=5&type=chunk) - The year-over-year increase in average loans was a combination of the acquisition of SimplyBank on July 1, 2024, and organic growth[5](index=5&type=chunk) [2.1.2. Total Loans Outstanding](index=1&type=section&id=2.1.2.%20Total%20Loans%20Outstanding) Total loans outstanding as of June 30, 2025, showed strong year-over-year growth, influenced by the SimplyBank acquisition and organic expansion in key loan categories Total Loans Outstanding | Date | Amount | | :-------------------- | :------------- | | June 30, 2025 | $3.90 billion | | June 30, 2024 | $3.20 billion | | March 31, 2025 | $3.85 billion | - Total loans outstanding as of June 30, 2025, increased by **$693 million or 21.62%** year-over-year[6](index=6&type=chunk). On a linked quarter basis, total loans increased **$42.6 million or 1.11%**[6](index=6&type=chunk) - The year-over-year increase was impacted by **$467 million in loans acquired** in the SimplyBank acquisition in July 2024[6](index=6&type=chunk). Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans[6](index=6&type=chunk) [2.2. Deposits](index=2&type=section&id=2.2.%20Deposits) Total deposits also saw substantial growth, largely due to the SimplyBank acquisition, with average total deposits increasing over 13% year-over-year [2.2.1. Average Total Deposits](index=2&type=section&id=2.2.1.%20Average%20Total%20Deposits) Average total deposits for Q2 2025 increased significantly year-over-year, primarily as a result of the SimplyBank acquisition Average Total Deposits | Period | Amount | | :-------------------- | :------------- | | Q2 2025 | $4.65 billion | | Q2 2024 | $4.11 billion | - Average total deposits for Q2 2025 increased by **$537 million or 13.06%** year-over-year[8](index=8&type=chunk). On a linked quarter basis, average deposits remained stable[8](index=8&type=chunk) - The year-over-year increase in average deposits was mostly a result of the acquisition of SimplyBank[8](index=8&type=chunk) [2.2.2. Total Deposits](index=2&type=section&id=2.2.2.%20Total%20Deposits) Total deposits as of June 30, 2025, increased on a linked quarter basis, with the SimplyBank acquisition contributing substantially to the year-over-year growth Total Deposits | Date | Amount | | :-------------------- | :------------- | | June 30, 2025 | $4.66 billion | | June 30, 2024 | $4.13 billion | | March 31, 2025 | $4.64 billion | - Total deposits as of June 30, 2025, increased by **$22.9 million or 0.49%** on a linked quarter basis[9](index=9&type=chunk). The SimplyBank acquisition in July 2024 contributed **$622 million in deposits**[9](index=9&type=chunk) Deposit Composition (June 30, 2025 vs 2024) | Type | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------- | :------------- | | Non-interest bearing | $860 million | $749 million | | Time deposits | $710 million | $586 million | [3. Capital and Shareholder Metrics](index=2&type=section&id=3.%20Capital%20and%20Shareholder%20Metrics) Shareholders' equity and per-share metrics improved year-over-year, while the tangible common equity ratio saw a slight decrease [3.1. Shareholders' Equity and Dividends](index=2&type=section&id=3.1.%20Shareholders%27%20Equity%20and%20Dividends) Shareholders' equity increased year-over-year, reaching $587.7 million. The Corporation maintained its quarterly dividend at $0.51 per share and did not repurchase any shares in the last twelve months Shareholders' Equity | Date | Amount | | :-------------------- | :------------- | | June 30, 2025 | $587.7 million | | June 30, 2024 | $530.7 million | - The Corporation has not repurchased any shares of its common stock during the last twelve months[10](index=10&type=chunk). **518,860 shares** remain available for repurchase under the current authorization[10](index=10&type=chunk) - A **$0.51 per share** quarterly dividend was paid in April and declared for July 15, 2025[10](index=10&type=chunk) [3.2. Book Value Per Share](index=2&type=section&id=3.2.%20Book%20Value%20Per%20Share) Both book value per share and tangible book value per share increased significantly year-over-year, reflecting improved equity Book Value Per Share | Metric | June 30, 2025 | June 30, 2024 | Change (YoY) | | :-------------------- | :------------- | :------------- | :----------- | | Book Value per share | $49.59 | $44.92 | +10.40% | | Tangible Book Value per share | $39.74 | $37.12 | +7.06% | [3.3. Tangible Common Equity to Tangible Asset Ratio](index=2&type=section&id=3.3.%20Tangible%20Common%20Equity%20to%20Tangible%20Asset%20Ratio) The tangible common equity to tangible asset ratio slightly decreased year-over-year, from 9.14% to 8.58% Tangible Common Equity to Tangible Asset Ratio | Date | Ratio | | :-------------------- | :------------- | | June 30, 2025 | 8.58% | | June 30, 2024 | 9.14% | [4. Net Interest Income and Margin](index=2&type=section&id=4.%20Net%20Interest%20Income%20and%20Margin) First Financial Corporation achieved a record net interest income of $52.7 million in Q2 2025, a 34.0% increase year-over-year, driven by sustained loan growth. The net interest margin also expanded significantly to 4.15% [4.1. Net Interest Income and Margin](index=2&type=section&id=4.1.%20Net%20Interest%20Income%20and%20Margin) First Financial Corporation achieved a record net interest income of $52.7 million in Q2 2025, a 34.0% increase year-over-year, driven by sustained loan growth. The net interest margin also expanded significantly to 4.15% Net Interest Income and Margin | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :------------- | :------------- | :----------- | | Net interest income | $52.7 million | $39.3 million | +34.0% | | Net interest margin | 4.15% | 3.57% | +0.58 pp | - The increase in net interest income was primarily due to a **$13.4 million increase in interest income**, while interest expense increased by only **$29 thousand** year over year[13](index=13&type=chunk). This was supported by **seven consecutive quarters of loan growth**[13](index=13&type=chunk) [5. Asset Quality](index=2&type=section&id=5.%20Asset%20Quality) Asset quality improved with significant decreases in nonperforming loans, credit loss provision, and net charge-offs, while the allowance for credit losses increased in absolute terms [5.1. Nonperforming Loans](index=2&type=section&id=5.1.%20Nonperforming%20Loans) Nonperforming loans significantly decreased year-over-year, resulting in a lower ratio of nonperforming loans to total loans and leases Nonperforming Loans | Metric | June 30, 2025 | June 30, 2024 | Change (YoY) | | :------------------------------------ | :------------- | :------------- | :----------- | | Nonperforming loans | $9.8 million | $15.9 million | -38.4% | | Ratio to total loans and leases | 0.25% | 0.50% | -0.25 pp | - On a linked quarter basis, nonperforming loans decreased from **$10.2 million** as of March 31, 2025, and the ratio of nonperforming loans to total loans and leases improved from **0.26%**[15](index=15&type=chunk) [5.2. Credit Loss Provision and Net Charge-Offs](index=2&type=section&id=5.2.%20Credit%20Loss%20Provision%20and%20Net%20Charge-Offs) The provision for credit losses and net charge-offs both decreased substantially in Q2 2025 compared to the same period in 2024, indicating improved credit performance Credit Loss Provision and Net Charge-Offs (Q2 YoY) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------------- | :------------- | :----------- | | Provision for credit losses | $2.0 million | $3.0 million | -33.33% | | Net charge-offs | $1.7 million | $4.7 million | -63.83% | [5.3. Allowance for Credit Losses](index=4&type=section&id=5.3.%20Allowance%20for%20Credit%20Losses) The allowance for credit losses increased in absolute terms but remained stable as a percentage of total loans, reflecting prudent risk management Allowance for Credit Losses | Metric | June 30, 2025 | June 30, 2024 | Change (YoY) | | :------------------------------------ | :------------- | :------------- | :----------- | | Allowance for credit losses | $47.1 million | $38.3 million | +22.98% | | As a percent of total loans | 1.21% | 1.20% | +0.01 pp | - On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased **one basis point** from **1.22%** as of March 31, 2025[18](index=18&type=chunk) [6. Non-Interest Income and Expense](index=4&type=section&id=6.%20Non-Interest%20Income%20and%20Expense) Non-interest income saw a modest increase, while non-interest expense also rose, yet the efficiency ratio improved, indicating better operational leverage [6.1. Non-Interest Income](index=4&type=section&id=6.1.%20Non-Interest%20Income) Non-interest income for Q2 2025 saw a modest increase to $10.4 million from $9.9 million in the prior year Non-Interest Income (Q2 YoY) | Period | Amount | | :-------------------- | :------------- | | Q2 2025 | $10.4 million | | Q2 2024 | $9.9 million | [6.2. Non-Interest Expense](index=4&type=section&id=6.2.%20Non-Interest%20Expense) Non-interest expense increased to $38.3 million in Q2 2025 from $32.7 million in Q2 2024 Non-Interest Expense (Q2 YoY) | Period | Amount | | :-------------------- | :------------- | | Q2 2025 | $38.3 million | | Q2 2024 | $32.7 million | [6.3. Efficiency Ratio](index=4&type=section&id=6.3.%20Efficiency%20Ratio) The Corporation's efficiency ratio improved to 59.37% in Q2 2025 from 64.56% in Q2 2024, indicating increased operational efficiency Efficiency Ratio (Q2 YoY) | Period | Ratio | | :-------------------- | :------------- | | Q2 2025 | 59.37% | | Q2 2024 | 64.56% | [7. Income Taxes](index=4&type=section&id=7.%20Income%20Taxes) Income tax expense increased in Q2 2025, with a higher effective tax rate compared to the previous year [7.1. Income Taxes](index=4&type=section&id=7.1.%20Income%20Taxes) Income tax expense increased in Q2 2025, with a higher effective tax rate compared to the previous year Income Taxes (Q2 YoY) | Metric | Q2 2025 | Q2 2024 | | :-------------------- | :------------- | :------------- | | Income tax expense | $4.2 million | $2.2 million | | Effective tax rate | 18.58% | 16.29% | [8. About First Financial Corporation](index=4&type=section&id=8.%20About%20First%20Financial%20Corporation) First Financial Corporation is the holding company for First Financial Bank N.A., the fifth oldest national bank in the U.S., operating 83 banking centers across five states [8.1. Company Overview](index=4&type=section&id=8.1.%20Company%20Overview) First Financial Corporation is the holding company for First Financial Bank N.A., the fifth oldest national bank in the U.S., operating 83 banking centers across five states - First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A.[23](index=23&type=chunk) - First Financial Bank N.A. is the **fifth oldest national bank** in the United States[23](index=23&type=chunk) - The bank operates **83 banking centers** in Illinois, Indiana, Kentucky, Tennessee, and Georgia[23](index=23&type=chunk) [9. Consolidated Financial Data](index=5&type=section&id=9.%20Consolidated%20Financial%20Data) This section provides detailed consolidated financial data, including end-of-period and average balances, income statement figures, per-share data, key ratios, asset quality details, and non-GAAP reconciliations, highlighting overall improved performance [9.1. End of Period and Average Balances](index=5&type=section&id=9.1.%20End%20of%20Period%20and%20Average%20Balances) This section provides detailed balances for assets, deposits, loans, and equity at period end and average balances for the quarter and year-to-date, showing growth across key balance sheet items End of Period Balances (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Assets | $5,602,969 | $4,891,068 | | Deposits | $4,662,889 | $4,132,327 | | Loans, including net deferred loan costs | $3,896,563 | $3,204,009 | | Allowance for Credit Losses | $47,087 | $38,334 | | Total Equity | $587,668 | $530,670 | | Tangible Common Equity | $470,894 | $438,569 | Average Balances (in thousands) - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------------ | :------------ | | Total Assets | $5,529,225 | $4,813,308 | | Loans | $3,877,246 | $3,197,695 | | Total Deposits | $4,651,051 | $4,113,826 | | Total Equity | $576,288 | $517,890 | [9.2. Income Statement Data](index=5&type=section&id=9.2.%20Income%20Statement%20Data) Key income statement figures for net interest income, provision for credit losses, non-interest income, non-interest expense, and net income are presented for the quarter and year-to-date periods, showing significant improvements in profitability Income Statement Data (in thousands) - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------------ | :------------ | | Net Interest Income | $52,671 | $39,294 | | Provision for Credit Losses | $1,950 | $2,966 | | Non-interest Income | $10,381 | $9,905 | | Non-interest Expense | $38,276 | $32,651 | | Net Income | $18,586 | $11,369 | Income Statement Data (in thousands) - YTD 2025 vs YTD 2024 | Metric | YTD 2025 | YTD 2024 | | :-------------------------- | :------------ | :------------ | | Net Interest Income | $104,646 | $78,214 | | Provision for Credit Losses | $3,900 | $4,766 | | Non-interest Income | $20,892 | $19,336 | | Non-interest Expense | $75,035 | $66,073 | | Net Income | $36,992 | $22,293 | [9.3. Per Share Data](index=5&type=section&id=9.3.%20Per%20Share%20Data) Detailed per share data, including basic and diluted net income, cash dividends, book value, and tangible book value, highlights strong shareholder returns and equity growth Per Share Data - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Basic and Diluted Net Income Per Common Share | $1.57 | $0.96 | | Cash Dividends Declared Per Common Share | $0.51 | $0.45 | | Book Value Per Common Share | $49.59 | $44.92 | | Tangible Book Value Per Common Share | $38.78 | $36.04 | Per Share Data - YTD 2025 vs YTD 2024 | Metric | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | | Basic and Diluted Net Income Per Common Share | $3.12 | $1.89 | | Cash Dividends Declared Per Common Share | $1.02 | $0.90 | | Book Value Per Common Share | $49.59 | $44.92 | | Tangible Book Value Per Common Share | $39.74 | $37.12 | [9.4. Key Ratios](index=6&type=section&id=9.4.%20Key%20Ratios) A comprehensive table of key financial ratios, including profitability, efficiency, asset quality, and capital ratios, demonstrates overall improved performance and sound financial health Key Ratios - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | | Return on average assets | 1.34 % | 0.94 % | | Return on average common shareholder's equity | 12.90 % | 8.78 % | | Efficiency ratio | 59.37 % | 64.56 % | | Net interest margin (tax equivalent) | 4.15 % | 3.57 % | | Nonperforming loans to loans and leases | 0.25 % | 0.50 % | | Tier 1 leverage | 10.91 % | 12.14 % | [9.5. Asset Quality Details](index=6&type=section&id=9.5.%20Asset%20Quality%20Details) Detailed breakdown of asset quality metrics, including past due loans, nonaccrual loans, other real estate owned, and net charge-offs, indicating a healthier loan portfolio Asset Quality (in thousands) - June 30, 2025 vs June 30, 2024 | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------ | | Accruing loans and leases past due 30-89 days | $22,303 | $14,913 | | Nonaccrual loans and leases | $7,878 | $14,563 | | Nonperforming loans and other real estate owned | $10,178 | $16,086 | | Total nonperforming assets | $13,087 | $18,978 | | Net charge-offs/(recoveries) (Q2) | $1,698 | $4,677 | | Net charge-offs/(recoveries) (YTD) | $3,545 | $6,199 | [9.6. Non-GAAP Reconciliations](index=6&type=section&id=9.6.%20Non-GAAP%20Reconciliations) Reconciliations for pre-tax, pre-provision income are provided for both the three and six months ended June 30, 2025 and 2024, offering additional perspective on core profitability Pre-tax, Pre-provision Income (in thousands) - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------------ | :------------ | | Income before Income Taxes | $22,826 | $13,582 | | Provision for credit losses | $1,950 | $2,966 | | Provision for unfunded commitments | $100 | $(300) | | **Pre-tax, Pre-provision Income** | **$24,876** | **$16,248** | Pre-tax, Pre-provision Income (in thousands) - YTD 2025 vs YTD 2024 | Metric | YTD 2025 | YTD 2024 | | :-------------------------- | :------------ | :------------ | | Income before Income Taxes | $46,603 | $26,711 | | Provision for credit losses | $3,900 | $4,766 | | Provision for unfunded commitments | $100 | $(300) | | **Pre-tax, Pre-provision Income** | **$50,603** | **$31,177** | [10. Consolidated Financial Statements](index=7&type=section&id=10.%20Consolidated%20Financial%20Statements) This section presents the full consolidated balance sheets and statements of income and comprehensive income, offering a complete view of the Corporation's financial position and performance [10.1. Consolidated Balance Sheets](index=7&type=section&id=10.1.%20Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a detailed breakdown of assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024, reflecting the company's financial position Consolidated Balance Sheet (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | TOTAL ASSETS | $5,602,969 | $5,560,348 | | TOTAL LIABILITIES | $5,015,301 | $5,011,307 | | TOTAL SHAREHOLDERS' EQUITY | $587,668 | $549,041 | Loan Composition (in thousands) - June 30, 2025 | Type | Amount | | :-------------------- | :------------- | | Commercial | $2,222,015 | | Residential | $987,738 | | Consumer | $681,538 | Deposit Composition (in thousands) - June 30, 2025 | Type | Amount | | :-------------------- | :------------- | | Non-interest-bearing | $859,699 | | Interest-bearing | $3,803,190 | [10.2. Consolidated Statements of Income and Comprehensive Income](index=8&type=section&id=10.2.%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) The consolidated statements of income and comprehensive income present the financial performance for the three and six months ended June 30, 2025, and 2024, detailing interest income, interest expense, non-interest income, non-interest expense, and net income Consolidated Statements of Income (in thousands) - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------------ | :------------ | | TOTAL INTEREST INCOME | $74,177 | $60,771 | | TOTAL INTEREST EXPENSE | $21,506 | $21,477 | | NET INTEREST INCOME | $52,671 | $39,294 | | Provision for credit losses | $1,950 | $2,966 | | TOTAL NON-INTEREST INCOME | $10,381 | $9,905 | | TOTAL NON-INTEREST EXPENSE | $38,276 | $32,651 | | NET INCOME | $18,586 | $11,369 | Consolidated Statements of Income (in thousands) - YTD 2025 vs YTD 2024 | Metric | YTD 2025 | YTD 2024 | | :------------------------------------ | :------------ | :------------ | | TOTAL INTEREST INCOME | $147,209 | $120,174 | | TOTAL INTEREST EXPENSE | $42,563 | $41,960 | | NET INTEREST INCOME | $104,646 | $78,214 | | Provision for credit losses | $3,900 | $4,766 | | TOTAL NON-INTEREST INCOME | $20,892 | $19,336 | | TOTAL NON-INTEREST EXPENSE | $75,035 | $66,073 | | NET INCOME | $36,992 | $22,293 |
Why First Financial Corp. (THFF) is a Great Dividend Stock Right Now
ZACKS· 2025-06-20 16:51
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 10% 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 4.01%, which is higher than the Banks - Midwest industry's yield of 3.21% and the S&P 500's yield of 1.59% [3] - The annualized dividend of $2.04 represents a 51.1% increase from the previous year [4] - Over the past five years, the company has increased its dividend four 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 earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, First Financial Corp. anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $6.02 per share, reflecting a year-over-year growth rate of 50.50% [5] Investment Appeal - First Financial Corp. is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7]
First Financial: Fair Value Given Lackluster Growth Prospects
Seeking Alpha· 2025-05-18 13:15
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]
First Financial (THFF) - 2025 Q1 - Quarterly Report
2025-05-07 13:20
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]
This is Why First Financial Corp. (THFF) is a Great Dividend Stock
ZACKS· 2025-05-01 16:50
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]