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]

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]

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].

[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 |

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]

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

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

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

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

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