First Financial (US:THFF)2025-11-05 19:10Financial Performance - Net income for Q3 2025 was $20.8 million, up from $8.7 million in Q3 2024, with basic earnings per share increasing to $1.75 from $0.74[120] - For the nine months ended September 30, 2025, net income reached $57.8 million, compared to $31.0 million for the same period in 2024, with basic earnings per share rising to $4.87 from $2.63[120] - Non-interest income for the nine months ended September 30, 2025, was $32.0 million, up from $30.6 million in the same period in 2024[125] Return Ratios - Return on average assets and return on average equity for Q3 2025 were 1.48% and 13.82%, respectively, compared to 0.64% and 6.39% in Q3 2024[120] - Return on average assets for Q3 2025 was 1.48%, compared to 0.64% in Q3 2024, while return on average equity improved to 13.82% from 6.39%[120] Interest Income - Net interest income for Q3 2025 increased by $7.4 million to $54.6 million, with a net interest margin of 4.25%, up from 3.78% in Q3 2024[123] - Net interest income increased by $7.4 million to $54.6 million for the three months ended September 30, 2025, with a net interest margin of 4.25%, a 12.42% increase year-over-year[123] - The net interest margin for the nine months ended September 30, 2025 was 4.17%, an increase from 3.63% in the same period of 2024[123] Credit Quality - Non-performing loans rose to $19.3 million at September 30, 2025, a 36.3% increase from $14.1 million in September 2024[129] - The provision for credit losses for Q3 2025 was $2.0 million, down from $9.4 million in Q3 2024, with net charge-offs decreasing to $1.6 million from $4.6 million[127] - The non-performing asset ratio is 0.39% of total assets, with net charge-offs at 0.17% to average loans and leases, indicating strong credit performance[122] Expenses - Non-interest expenses for Q3 2025 were $38.0 million, a slight decrease from $38.6 million in Q3 2024, while total non-interest expenses for the nine months increased to $113.1 million[126] - Non-interest expenses for the quarter ended September 30, 2025, were $38.0 million, a decrease from $38.6 million in the same period in 2024[126] Liquidity and Capital - Liquidity remains strong, with cash and available-for-sale securities representing approximately 22.5% of total assets as of September 30, 2025[121] - The Corporation has $203.1 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, ensuring adequate liquidity[137] - The Corporation's total capital ratios as of September 30, 2025, were 14.15% for total risk-based capital and 13.12% for common equity tier 1 capital, both exceeding regulatory requirements[144] - The Corporation's total risk-based capital ratio was 14.15% as of September 30, 2025, up from 13.46% at December 31, 2024[144] Allowance for Credit Losses - The allowance for credit losses was $47.4 million as of September 30, 2025, compared to $46.7 million at December 31, 2024[117] - The allowance for credit losses was $47.4 million as of September 30, 2025, compared to $46.7 million at December 31, 2024[117] Loans and Deposits - Loans net of deferred loan costs increased by $130 million to $4.0 billion compared to December 31, 2024[138] - Deposits decreased by 2.2% to $4.6 billion as of September 30, 2025, compared to December 31, 2024[138]