First Financial Corporation Reports 2025 Results
Rhea-AI Summary
First Financial Corporation (NASDAQ:THFF) reported record 2025 results: net income $79.2M and EPS $6.68, up from $47.3M and $4.00 in 2024. Fourth-quarter net income was $21.5M (EPS $1.81). Loans surpassed $4.06B, net interest income set a record at $219.9M for the year, and book value per share rose to $54.78. Provision for credit losses declined year-over-year to $8.2M in 2025. The company noted deposit decreases and one-time restructuring and acquisition expenses impacting non-interest income and expense.
Positive
- Net income +67% to $79.2M for 2025 versus 2024
- Diluted EPS increased to $6.68 in 2025 from $4.00
- Total loans surpassed $4.06B (5.69% YoY growth)
- Record annual net interest income of $219.9M
- Book value per share +18.17% to $54.78
Negative
- Total deposits declined 3.59% to $4.55B year-over-year
- Non-interest income fell; $4.6M loss from securities restructuring
- Non-interest expense rose; includes $1.4M acquisition-related and $1.3M one-time costs
- Quarterly provision for credit losses increased to $2.4M from $2.0M
News Market Reaction
On the day this news was published, THFF gained 1.21%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
THFF gained 1.12% while peers like CAC, IBCP, SMBC and MPB rose between 2.33% and 3.18%, suggesting broader regional bank strength but with stock-specific earnings catalysts for THFF.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 18 | Dividend declaration | Positive | +1.9% | Quarterly cash dividend of <b>$0.56</b> per share announced. |
| Nov 06 | Acquisition announcement | Positive | -0.2% | Agreement to acquire CedarStone Financial for <b>$25.0M</b> cash. |
| Oct 28 | Earnings release | Positive | +3.1% | Q3 2025 results with record net interest income and higher EPS. |
| Sep 18 | Dividend declaration | Positive | +3.0% | Quarterly dividend of <b>$0.51</b> per share announced. |
Recent positive announcements (earnings and dividends) have typically coincided with share price gains, with one mild divergence on an acquisition announcement.
Over the last few months, First Financial has combined capital returns, stronger fundamentals, and M&A. Dividend declarations on Sep 18, 2025 and Dec 18, 2025 saw positive next-day moves around regular cash payouts. The Q3 2025 earnings release on Oct 28, 2025 highlighted record net interest income and expanding margins and also coincided with a solid price gain. The November 2025 CedarStone acquisition news produced a slight negative reaction, showing investors sometimes reassess deals more cautiously than operating results.
Market Pulse Summary
This announcement reports stronger profitability, with 2025 net income of $79.2M, diluted EPS of $6.68, and a higher net interest margin of 4.66% in Q4. Loans grew to $4.06B while asset quality metrics such as nonperforming loans and the 1.18% credit loss reserve ratio remained contained. Investors may compare these results to prior quarters’ momentum and monitor deposit trends, one-time restructuring items, and credit costs to gauge the durability of recent performance.
Key Terms
non-gaap financial measure financial
pre-tax, pre-provision net income financial
net interest income financial
net interest margin financial
nonperforming loans financial
allowance for credit losses financial
efficiency ratio financial
tier 1 leverage financial
AI-generated analysis. Not financial advice.
TERRE HAUTE, Ind., Feb. 03, 2026 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the fourth quarter of 2025.
- Net income was
$21.5 million compared to$16.2 million reported for the same period of 2024; - Diluted net income per common share of
$1.81 compared to$1.37 for the same period of 2024; - Return on average assets was
1.52% compared to1.18% for the three months ended December 31, 2024; - Provision for credit losses was
$2.4 million compared to provision of$2.0 million for the fourth quarter 2024; and - Pre-tax, pre-provision net income was
$29.4 million compared to$22.3 million for the same period in 2024.1
The Corporation further reported results for the year ended December 31, 2025:
- Net income was
$79.2 million compared to$47.3 million reported for the same period of 2024; - Diluted net income per common share of
$6.68 compared to$4.00 for the same period of 2024; - Return on average assets was
1.42% compared to0.92% for the twelve months ended December 31, 2024; - Provision for credit losses was
$8.2 million compared to provision of$16.2 million for the twelve months ended December 31, 2024; and - Pre-tax, pre-provision net income was
$107.7 million compared to$73.4 million for the same period in 2024.1
____________________
1 Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release.
Average Total Loans
Average total loans for the fourth quarter of 2025 were
Total Loans Outstanding
Total loans outstanding as of December 31, 2025, were
Norman D. Lowery, President and Chief Executive Officer, commented “We are pleased with our fourth quarter and full year 2025 performance, marking the ninth consecutive quarter of loan growth and surpassing
Average Total Deposits
Average total deposits for the quarter ended December 31, 2025, were
Total Deposits
Total deposits were
Shareholders’ Equity
Shareholders’ equity at December 31, 2025, was
Book Value Per Share
Book Value per share was
Tangible Common Equity to Tangible Asset Ratio
The Corporation’s tangible common equity to tangible asset ratio was
Net Interest Income
Net interest income for the fourth quarter of 2025 was a record
Net Interest Margin
The net interest margin for the quarter ended December 31, 2025, was
Nonperforming Loans
Nonperforming loans as of December 31, 2025, were
Credit Loss Provision
The provision for credit losses for the three months ended December 31, 2025, was
Net Charge-Offs
In the fourth quarter of 2025 net charge-offs were
Allowance for Credit Losses
The Corporation’s allowance for credit losses as of December 31, 2025, was
Non-Interest Income
Non-interest income for the three months ended December 31, 2025 and 2024 was
Non-Interest Expense
Non-interest expense for the three months ended December 31, 2025, was
Efficiency Ratio
The Corporation’s efficiency ratio was
Income Taxes
Income tax expense for the three months ended December 31, 2025, was
About First Financial Corporation
First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 79 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. Additional information is available at www.first-online.bank.
Investor Contact:
Rodger A. McHargue
Chief Financial Officer
P: 812-238-6334
E: rmchargue@first-online.com
| Three Months Ended | Year Ended | |||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||
| END OF PERIOD BALANCES | ||||||||||||||
| Assets | $ | 5,756,126 | $ | 5,669,686 | $ | 5,560,348 | $ | 5,756,126 | $ | 5,560,348 | ||||
| Deposits | $ | 4,551,111 | $ | 4,615,305 | $ | 4,718,914 | $ | 4,551,111 | $ | 4,718,914 | ||||
| Loans, including net deferred loan costs | $ | 4,055,303 | $ | 3,967,401 | $ | 3,837,141 | $ | 4,055,303 | $ | 3,837,141 | ||||
| Allowance for Credit Losses | $ | 47,995 | $ | 47,411 | $ | 46,732 | $ | 47,995 | $ | 46,732 | ||||
| Total Equity | $ | 649,725 | $ | 622,218 | $ | 549,041 | $ | 649,725 | $ | 549,041 | ||||
| Tangible Common Equity(a) | $ | 535,262 | $ | 506,604 | $ | 427,470 | $ | 535,262 | $ | 427,470 | ||||
| AVERAGE BALANCES | ||||||||||||||
| Total Assets | $ | 5,654,790 | $ | 5,593,870 | $ | 5,516,036 | $ | 5,571,663 | $ | 5,154,320 | ||||
| Earning Assets | $ | 5,334,253 | $ | 5,270,173 | $ | 5,196,352 | $ | 5,253,031 | $ | 4,871,293 | ||||
| Investments | $ | 1,258,077 | $ | 1,248,519 | $ | 1,311,415 | $ | 1,254,276 | $ | 1,310,263 | ||||
| Loans | $ | 3,973,985 | $ | 3,928,817 | $ | 3,790,515 | $ | 3,905,450 | $ | 3,468,534 | ||||
| Total Deposits | $ | 4,641,267 | $ | 4,591,531 | $ | 4,757,438 | $ | 4,633,683 | $ | 4,405,679 | ||||
| Interest-Bearing Deposits | $ | 3,790,653 | $ | 3,783,393 | $ | 3,925,740 | $ | 3,813,717 | $ | 3,767,259 | ||||
| Interest-Bearing Liabilities | $ | 326,493 | $ | 359,579 | $ | 134,553 | $ | 304,146 | $ | 166,377 | ||||
| Total Equity | $ | 640,172 | $ | 601,034 | $ | 556,330 | $ | 595,559 | $ | 535,963 | ||||
| INCOME STATEMENT DATA | ||||||||||||||
| Net Interest Income | $ | 60,619 | $ | 54,603 | $ | 49,602 | $ | 219,868 | $ | 174,986 | ||||
| Net Interest Income Fully Tax Equivalent(b) | $ | 62,003 | $ | 56,033 | $ | 50,985 | $ | 225,500 | $ | 180,586 | ||||
| Provision for Credit Losses | $ | 2,350 | $ | 1,950 | $ | 2,000 | $ | 8,200 | $ | 16,166 | ||||
| Non-interest Income | $ | 9,931 | $ | 11,149 | $ | 12,213 | $ | 41,972 | $ | 42,772 | ||||
| Non-interest Expense | $ | 41,843 | $ | 38,048 | $ | 39,801 | $ | 154,926 | $ | 144,438 | ||||
| Net Income | $ | 21,454 | $ | 20,762 | $ | 16,241 | $ | 79,208 | $ | 47,275 | ||||
| PER SHARE DATA | ||||||||||||||
| Basic and Diluted Net Income Per Common Share | $ | 1.81 | $ | 1.75 | $ | 1.37 | $ | 6.68 | $ | 4.00 | ||||
| Cash Dividends Declared Per Common Share | $ | 0.56 | $ | 0.51 | $ | 0.51 | $ | 2.09 | $ | 1.86 | ||||
| Book Value Per Common Share | $ | 54.78 | $ | 52.50 | $ | 46.36 | $ | 54.78 | $ | 46.36 | ||||
| Tangible Book Value Per Common Share(c) | $ | 44.31 | $ | 40.96 | $ | 36.77 | $ | 45.15 | $ | 36.10 | ||||
| Basic Weighted Average Common Shares Outstanding | 11,865 | 11,851 | 11,824 | 11,852 | 11,812 | |||||||||
____________________
(a) Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholder’s equity.
(b) Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest income fully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of tax exempt income by dividing tax exempt income by the net of tax rate of
(c) Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividing average tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assets from average shareholder’s equity.
| Key Ratios | Three Months Ended | Year Ended | ||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||
| Return on average assets | 1.52 | % | 1.48 | % | 1.18 | % | 1.42 | % | 0.92 | % | ||||
| Return on average common shareholder's equity | 13.41 | % | 13.82 | % | 11.68 | % | 13.30 | % | 8.82 | % | ||||
| Efficiency ratio | 58.17 | % | 56.63 | % | 62.98 | % | 57.92 | % | 64.67 | % | ||||
| Average equity to average assets | 11.32 | % | 10.74 | % | 10.09 | % | 10.69 | % | 10.40 | % | ||||
| Net interest margin(a) | 4.66 | % | 4.25 | % | 3.94 | % | 4.29 | % | 3.71 | % | ||||
| Net charge-offs to average loans and leases | 0.18 | % | 0.17 | % | 0.15 | % | 0.18 | % | 0.35 | % | ||||
| Credit loss reserve to loans and leases | 1.18 | % | 1.20 | % | 1.22 | % | 1.18 | % | 1.22 | % | ||||
| Credit loss reserve to nonperforming loans | 325.30 | % | 246.14 | % | 351.37 | % | 325.30 | % | 351.37 | % | ||||
| Nonperforming loans to loans and leases | 0.36 | % | 0.49 | % | 0.35 | % | 0.36 | % | 0.35 | % | ||||
| Tier 1 leverage | 11.25 | % | 11.05 | % | 10.38 | % | 11.25 | % | 10.38 | % | ||||
| Risk-based capital - Tier 1 | 13.21 | % | 13.12 | % | 12.43 | % | 13.21 | % | 12.43 | % | ||||
____________________
(a) Net interest margin is calculated on a tax equivalent basis.
| Asset Quality | Three Months Ended | Year Ended | ||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||
| Accruing loans and leases past due 30-89 days | $ | 17,294 | $ | 14,388 | $ | 22,486 | $ | 17,294 | $ | 22,486 | ||||
| Accruing loans and leases past due 90 days or more | $ | 1,083 | $ | 1,792 | $ | 1,821 | $ | 1,083 | $ | 1,821 | ||||
| Nonaccrual loans and leases | $ | 13,671 | $ | 17,470 | $ | 11,479 | $ | 13,671 | $ | 11,479 | ||||
| Other real estate owned | $ | 94 | $ | 138 | $ | 523 | $ | 94 | $ | 523 | ||||
| Nonperforming loans and other real estate owned | $ | 14,848 | $ | 19,400 | $ | 13,823 | $ | 14,848 | $ | 13,823 | ||||
| Total nonperforming assets | $ | 17,698 | $ | 22,243 | $ | 16,719 | $ | 17,698 | $ | 16,719 | ||||
| Gross charge-offs | $ | 3,415 | $ | 3,226 | $ | 3,070 | $ | 12,810 | $ | 19,289 | ||||
| Recoveries | $ | 1,649 | $ | 1,600 | $ | 1,633 | $ | 5,873 | $ | 7,082 | ||||
| Net charge-offs/(recoveries) | $ | 1,766 | $ | 1,626 | $ | 1,437 | $ | 6,937 | $ | 12,207 | ||||
| Non-GAAP Reconciliations | Three Months Ended December 31, | ||||
| 2025 | 2024 | ||||
| ($ in thousands, except EPS) | |||||
| Income before Income Taxes | $ | 26,357 | $ | 20,014 | |
| Provision for credit losses | 2,350 | 2,000 | |||
| Provision for unfunded commitments | 700 | 300 | |||
| Pre-tax, Pre-provision Income | $ | 29,407 | $ | 22,314 | |
| Non-GAAP Reconciliations | Year Ended December 31, | ||||
| 2025 | 2024 | ||||
| ($ in thousands, except EPS) | |||||
| Income before Income Taxes | $ | 98,714 | $ | 57,154 | |
| Provision for credit losses | 8,200 | 16,166 | |||
| Provision for unfunded commitments | 800 | 100 | |||
| Pre-tax, Pre-provision Income | $ | 107,714 | $ | 73,420 | |
| CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data) | |||||||
| December 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 130,369 | $ | 93,526 | |||
| Federal funds sold | 475 | 820 | |||||
| Securities available-for-sale | 1,149,526 | 1,195,990 | |||||
| Loans: | |||||||
| Commercial | 2,375,344 | 2,196,351 | |||||
| Residential | 986,955 | 967,386 | |||||
| Consumer | 688,135 | 668,058 | |||||
| 4,050,434 | 3,831,795 | ||||||
| (Less) plus: | |||||||
| Net deferred loan costs | 4,869 | 5,346 | |||||
| Allowance for credit losses | (47,995 | ) | (46,732 | ) | |||
| 4,007,308 | 3,790,409 | ||||||
| Restricted stock | 18,536 | 17,555 | |||||
| Accrued interest receivable | 27,762 | 26,934 | |||||
| Premises and equipment, net | 78,582 | 81,508 | |||||
| Bank-owned life insurance | 131,286 | 128,766 | |||||
| Goodwill | 98,229 | 100,026 | |||||
| Other intangible assets | 16,234 | 21,545 | |||||
| Other real estate owned | 94 | 523 | |||||
| Other assets | 97,725 | 102,746 | |||||
| TOTAL ASSETS | $ | 5,756,126 | $ | 5,560,348 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Deposits: | |||||||
| Non-interest-bearing | $ | 916,473 | $ | 859,014 | |||
| Interest-bearing: | |||||||
| Certificates of deposit exceeding the FDIC insurance limits | 135,605 | 144,982 | |||||
| Other interest-bearing deposits | 3,499,033 | 3,714,918 | |||||
| 4,551,111 | 4,718,914 | ||||||
| Short-term borrowings | 292,468 | 187,057 | |||||
| FHLB advances | 188,208 | 28,120 | |||||
| Other liabilities | 73,470 | 77,216 | |||||
| TOTAL LIABILITIES | 5,105,257 | 5,011,307 | |||||
| Shareholders’ equity | |||||||
| Common stock, $.125 stated value per share; | |||||||
| Authorized shares-40,000,000 | |||||||
| Issued shares-16,190,157 in 2025 and 16,165,023 in 2024 | |||||||
| Outstanding shares-11,880,759 in 2025 and 11,842,539 in 2024 | 2,021 | 2,018 | |||||
| Additional paid-in capital | 147,442 | 145,927 | |||||
| Retained earnings | 741,793 | 687,366 | |||||
| Accumulated other comprehensive income/(loss) | (86,681 | ) | (132,285 | ) | |||
| Less: Treasury shares at cost-4,309,398 in 2025 and 4,322,484 in 2024 | (153,706 | ) | (153,985 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 650,869 | 549,041 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,756,126 | $ | 5,560,348 | |||
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data) | |||||||||||
| Year Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | 2023 | |||||||||
| (unaudited) | |||||||||||
| INTEREST INCOME: | |||||||||||
| Loans, including related fees | $ | 267,795 | $ | 226,262 | $ | 189,641 | |||||
| Securities: | |||||||||||
| Taxable | 23,822 | 24,237 | 24,643 | ||||||||
| Tax-exempt | 10,650 | 10,533 | 10,573 | ||||||||
| Other | 3,321 | 3,710 | 3,540 | ||||||||
| TOTAL INTEREST INCOME | 305,588 | 264,742 | 228,397 | ||||||||
| INTEREST EXPENSE: | |||||||||||
| Deposits | 72,433 | 81,071 | 51,694 | ||||||||
| Short-term borrowings | 6,502 | 4,284 | 5,370 | ||||||||
| Other borrowings | 6,785 | 4,401 | 4,071 | ||||||||
| TOTAL INTEREST EXPENSE | 85,720 | 89,756 | 61,135 | ||||||||
| NET INTEREST INCOME | 219,868 | 174,986 | 167,262 | ||||||||
| Provision for credit losses | 8,200 | 16,166 | 7,295 | ||||||||
| NET INTEREST INCOME AFTER PROVISION | |||||||||||
| FOR LOAN LOSSES | 211,668 | 158,820 | 159,967 | ||||||||
| NON-INTEREST INCOME: | |||||||||||
| Trust and financial services | 5,777 | 5,468 | 5,155 | ||||||||
| Service charges and fees on deposit accounts | 31,388 | 29,653 | 28,079 | ||||||||
| Other service charges and fees | 1,097 | 999 | 801 | ||||||||
| Securities gains/(losses), net | (4,600 | ) | 103 | (1 | ) | ||||||
| Interchange income | 755 | 655 | 676 | ||||||||
| Loan servicing fees | 1,170 | 1,259 | 1,176 | ||||||||
| Gain on sales of mortgage loans | 1,453 | 1,153 | 966 | ||||||||
| Other | 4,932 | 3,482 | 5,850 | ||||||||
| TOTAL NON-INTEREST INCOME | 41,972 | 42,772 | 42,702 | ||||||||
| NON-INTEREST EXPENSE: | |||||||||||
| Salaries and employee benefits | 79,132 | 74,555 | 68,525 | ||||||||
| Occupancy expense | 10,455 | 9,616 | 9,351 | ||||||||
| Equipment expense | 19,000 | 17,612 | 14,020 | ||||||||
| FDIC Expense | 2,845 | 2,788 | 2,907 | ||||||||
| Other | 43,494 | 39,867 | 35,373 | ||||||||
| TOTAL NON-INTEREST EXPENSE | 154,926 | 144,438 | 130,176 | ||||||||
| INCOME BEFORE INCOME TAXES | 98,714 | 57,154 | 72,493 | ||||||||
| Provision for income taxes | 19,506 | 9,879 | 11,821 | ||||||||
| NET INCOME | 79,208 | 47,275 | 60,672 | ||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
| Change in unrealized gains/(losses) on securities, net of reclassifications and taxes | 44,449 | (9,807 | ) | 10,896 | |||||||
| Change in funded status of post retirement benefits, net of taxes | 1,155 | 4,609 | 1,991 | ||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 124,812 | $ | 42,077 | $ | 73,559 | |||||
| PER SHARE DATA | |||||||||||
| Basic and Diluted Earnings per Share | $ | 6.68 | $ | 4.00 | $ | 5.08 | |||||
| Weighted average number of shares outstanding (in thousands) | 11,852 | 11,812 | 11,937 | ||||||||
FAQ
What were First Financial (THFF) fourth-quarter 2025 earnings and EPS?
How did First Financial (THFF) perform for full-year 2025 compared to 2024?
What caused the decline in First Financial (THFF) non-interest income in Q4 2025?
Did First Financial (THFF) report loan growth in 2025 and what drove it?
How did First Financial (THFF) deposits change through year-end 2025?
What is First Financial's (THFF) capital and book value position at year-end 2025?
