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]

Core Viewpoint - The article emphasizes the importance of "years of consecutive dividend growth" as a measure of safety in the search for high-quality bank stocks, specifically highlighting First Financial Corporation based in Terre Haute, Indiana [1]. Group 1 - The investment strategy focuses on a long-term, buy-and-hold approach, favoring stocks that can consistently deliver high-quality earnings, particularly in the dividend and income sector [1]. - The author engages in blogging about various US and Canadian stocks, as well as predominantly UK names, indicating a broad interest in dividend-paying investments [1].

Core Viewpoint - First Financial Corp. (THFF) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system focuses on the consensus measure of EPS estimates from sell-side analysts, which is crucial for understanding a company's earnings trajectory [2]. - Recent trends show that First Financial Corp. is expected to earn $5.56 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 39% [9]. - Over the past three months, the Zacks Consensus Estimate for First Financial Corp. has risen by 7.2%, indicating a positive shift in earnings expectations [9]. Impact on Stock Price - Changes in earnings estimates are strongly correlated with near-term stock price movements, primarily due to institutional investors adjusting their valuations based on these estimates [5]. - The upgrade to Zacks Rank 1 suggests an improvement in First Financial Corp.'s underlying business, which is likely to drive the stock price higher as investors respond to this trend [6][11]. Zacks Rating 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 [8]. - 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][11].

Employment and Operations - First Financial Corporation had 937 full-time equivalent employees as of the end of 2024[16]. - The Corporation operates in a highly competitive environment, facing competition from commercial banks, credit unions, and other financial institutions[22]. - The Corporation's business activities are primarily centered in west-central Indiana, east-central Illinois, western Kentucky, eastern and central Tennessee, and northern Georgia[22]. - The Corporation operates 83 branches across multiple states, indicating a strong regional presence[301]. Risk Management and Compliance - The Corporation's risk management includes established underwriting standards for commercial loans, which are primarily secured by borrower cash flows and collateral[17]. - The Corporation's consumer loan portfolio includes home equity loans, secured loans, and unsecured loans, with risks mitigated by a diverse mix of products[20]. - The Corporation's commercial real estate loans are underwritten based on cash flows and collateral value, with specific risks associated with construction loans[18]. - The Corporation is subject to regulation by several agencies, including the Federal Reserve and the FDIC, which may impact its business and prospects[23]. - The Corporation's banking subsidiaries currently meet capital, management, and CRA requirements[42]. - The Bank is subject to limitations on the amount of loans or extensions of credit to affiliates and insiders, ensuring compliance with regulatory standards[54]. - The bank must adhere to guidelines established by federal banking agencies regarding internal controls, loan documentation, and management compensation[81]. - The Corporation's internal controls and risk management systems may not be fully effective, potentially leading to unmitigated risks in various market environments[127]. - The Corporation is subject to increased scrutiny regarding compliance with anti-money laundering regulations, which could result in significant penalties[150]. Financial Performance and Capital Ratios - The Corporation's CET1 ratio is 12.76% to risk-weighted assets, exceeding the minimum requirement of 7.00%[8]. - The Tier 1 capital ratio stands at 12.76% to risk-weighted assets, above the minimum requirement of 8.50%[8]. - The Total capital ratio is 13.81% to risk-weighted assets, surpassing the minimum requirement of 10.50%[8]. - The leverage ratio is reported at 10.26%, exceeding the minimum requirement of 4%[8]. - The Corporation's common equity Tier 1 risk-weighted capital ratio is required to be at least 7% under Basel III regulations, with a total risk-based capital ratio requirement of 10.5%[149]. - The Corporation's ability to pay dividends is subject to legal and regulatory restrictions, and future payments will depend on earnings and capital requirements[155]. - The Corporation's reliance on dividends from subsidiaries for revenue may be impacted by regulatory limitations on dividend payments, affecting its ability to service debt and pay obligations[141]. Economic Conditions and Market Risks - The Corporation's financial performance is highly dependent on economic conditions, with potential adverse effects from economic downturns, high unemployment, and inflation impacting borrowers' ability to repay loans[89]. - A collection of bank failures in March 2023, including Silvergate Bank and Silicon Valley Bank, has negatively impacted depositor confidence and could affect the Corporation's stock price and financial condition[91]. - Continued elevated levels of inflation and the Federal Reserve's monetary policy changes, including a 100 basis point cut in the target fed funds rate in 2024, may adversely impact the Corporation's results of operations[95]. - Changes in interest rates significantly affect the Corporation's net interest income, which is crucial for earnings, with potential adverse effects if interest rates on loans decrease faster than those on deposits[96][98]. - Geographic concentration in markets such as west central Indiana and eastern Tennessee makes the Corporation susceptible to local economic downturns, potentially leading to increased loan delinquencies and reduced demand for products[102][103]. - Economic conditions in local markets may differ from national trends, increasing the risk of financial instability for the Corporation[102]. Credit Losses and Allowance for Credit Losses - The provision for credit loss expense for the year ending December 31, 2024, was $16.2 million, with an allowance for credit losses at $46.7 million[287]. - The allowance for credit losses methodology includes tracking losses from loan cohorts based on economic indicators such as unemployment rates and GDP[288]. - The allowance for credit losses is influenced by loan volumes, quality rating migration, delinquency status, and economic forecasts[319]. - Credit quality is continuously monitored, and the allowance for credit losses is adjusted based on expected losses inherent in the loan portfolio[316]. - The methodology for estimating expected credit losses includes specific and pooled components, with historical loss experience since 2008 being a key factor[320]. Technological and Operational Risks - The Corporation's operational systems are increasingly at risk of cybersecurity threats, which could lead to financial liability and damage to reputation[117]. - The reliance on external vendors for day-to-day operations exposes the Corporation to operational risks if these vendors fail to perform as contracted[122]. - The Corporation implemented an AI digital assistant, Gabby, which may expose it to increased operational risks and regulatory scrutiny[126]. - New lines of business or products may introduce additional risks, and failure to manage these effectively could adversely affect the Corporation's financial condition[123]. - The financial services industry is characterized by rapid technological change, and failure to keep pace may negatively impact the Corporation's growth and revenue[124]. Financial Results and Trends - Total assets increased to $5.56 billion in 2024 from $4.85 billion in 2023, representing a growth of approximately 14.6%[292]. - Net interest income for 2024 was $174.986 million, compared to $167.262 million in 2023, reflecting an increase of about 4.3%[293]. - Total interest income rose to $264.742 million in 2024, up from $228.397 million in 2023, marking an increase of approximately 15.9%[293]. - Non-interest income remained stable at $42.772 million in 2024, slightly up from $42.702 million in 2023[293]. - Net income for 2024 was $47.275 million, a decrease from $60.672 million in 2023, representing a decline of about 22%[293]. - Basic and diluted earnings per share for 2024 were $4.00, down from $5.08 in 2023, indicating a decrease of about 21.3%[293]. - The company reported a comprehensive income of $42.077 million in 2024, compared to $73.559 million in 2023, reflecting a significant decrease[293]. - Net cash from operating activities decreased to $60.366 million in 2024 from $86.090 million in 2023, reflecting a decline of 30%[297]. - Cash flows from investing activities showed a net outflow of $66.119 million in 2024, compared to an outflow of $22.098 million in 2023[297]. - Interest paid for the year increased to $88.545 million in 2024 from $59.031 million in 2023, marking a rise of 50%[297]. Regulatory Environment and Future Outlook - Regulatory scrutiny and potential new legislation following bank failures may require the Corporation to adjust its strategy and operations, impacting operating expenses and results[94]. - Future changes in federal and state laws and regulations could significantly increase the Corporation's costs and impact its financial condition[148]. - The Corporation may face increased FDIC insurance premiums due to market developments affecting the insurance fund[152]. - The Corporation's stock price may be volatile, influenced by various factors including market conditions and regulatory changes[156]. - The Corporation's access to funding sources may be impaired by adverse market conditions or regulatory actions, affecting its ability to finance activities[105].

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 8.66% since the beginning of the year [3] - The company currently pays a dividend of $0.51 per share, resulting in a dividend yield of 4.06%, which is significantly higher than the Banks - Midwest industry's yield of 2.96% and the S&P 500's yield of 1.56% [3] Dividend Performance - The current annualized dividend of First Financial Corp. is $2.04, reflecting a 51.1% increase from the previous year [4] - Over the past five years, the company has increased its dividend three times on a year-over-year basis, averaging an annual increase of 13.25% [4] - The current payout ratio is 45%, indicating that the company paid out 45% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - First Financial Corp. is expected to see earnings expansion in the current fiscal year, with the Zacks Consensus Estimate for 2025 projected at $5.41 per share, representing a year-over-year earnings growth rate of 35.25% [5] Investment Appeal - The company is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]