First Financial Corporation Reports Second Quarter Results
Rhea-AI Summary
First Financial Corporation (NASDAQ: THFF) reported second quarter 2026 net income of $22.7 million, up from $18.6 million a year earlier, with diluted EPS of $1.91 versus $1.57. Return on average assets was 1.48%, and pre-tax, pre-provision income reached $29.3 million versus $24.9 million in 2025.
Average loans rose 14.83% year over year to $4.45 billion, and average deposits increased 4.68% to $4.87 billion. Net interest income was a record $61.2 million, with a 4.33% net interest margin. The company completed the March 1, 2026 acquisition of CedarStone Financial, adding $292 million of loans and $313 million of deposits. Book value per share grew to $56.83, shareholders’ equity to $675.8 million, and the efficiency ratio improved to 57.95%, while nonperforming loans increased to $27.1 million and net charge-offs to $2.7 million.
Positive
- Net income Q2 2026 $22.7M vs. $18.6M in Q2 2025
- Diluted EPS Q2 2026 $1.91 vs. $1.57 in Q2 2025
- Net interest income Q2 2026 $61.2M, up 16.2% year over year
- Average loans $4.45B, up 14.83% year over year
- Book value per share $56.83 vs. $49.59 year over year
- Efficiency ratio 57.95% vs. 59.37% in Q2 2025
Negative
- Nonperforming loans $27.1M vs. $9.8M year over year
- Net charge-offs Q2 2026 $2.7M vs. $1.7M in Q2 2025
- Allowance for credit losses ratio 1.14% vs. 1.21% year over year
- Non-interest expense Q2 2026 $42.5M vs. $38.3M in Q2 2025
News Explained
The completed acquisition’s bargain-purchase gain is now $33 thousand after second-quarter accounting adjustments, versus a preliminary $716 thousand.
First Financial reported that its completed CedarStone acquisition was remeasured in the second quarter, reducing the cumulative bargain-purchase gain from the preliminary
The release also reports no common-stock repurchases during the past 12 months, while
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 28 | First-quarter earnings | Positive | +0.8% | Net income, EPS, and net interest income increased year over year. |
| Oct 28 | Third-quarter earnings | Positive | +3.1% | Net income, EPS, margin, and loan growth improved year over year. |
| Jul 22 | Second-quarter earnings | Positive | +1.3% | Record net interest income and improved asset quality supported results. |
| Apr 22 | First-quarter earnings | Positive | +5.5% | Net income, EPS, margin, and asset quality improved year over year. |
| Oct 22 | Third-quarter earnings | Negative | +0.8% | Net income and EPS declined despite loan and deposit growth. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical earnings reactions were positive in all five selected events; four positive-result events aligned with the reaction, while one negative-results event diverged.
Key Terms
net interest margin financial
nonperforming loans financial
allowance for credit losses financial
pre-tax, pre-provision net income financial
tangible common equity financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
TERRE HAUTE, Ind., July 28, 2026 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the second quarter of 2026.
- Net income was
$22.7 million compared to$18.6 million reported for the same period of 2025; - Diluted net income per common share of
$1.91 compared to$1.57 for the same period of 2025; - Return on average assets was
1.48% compared to1.34% for the three months ended June 30, 2025; - Provision for credit losses was
$1.3 million compared to provision of$2.0 million for the second quarter 2025; and - Pre-tax, pre-provision net income was
$29.3 million compared to$24.9 million for the same period in 2025.1
The Corporation further reported results for the six months ended June 30, 2026:
- Net income was
$42.5 million compared to$37.0 million reported for the same period of 2025; - Diluted net income per common share of
$3.58 compared to$3.12 for the same period of 2025; - Return on average assets was
1.42% compared to1.34% for the six months ended June 30, 2025; - Provision for credit losses was
$3.9 million compared to provision of$3.9 million for the six months ended June 30, 2025; and - Pre-tax, pre-provision net income was
$56.6 million compared to$50.6 million for the same period in 2025.1
____________________________
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.
Acquisition
On March 1, 2026, First Financial Corporation completed the acquisition of CedarStone Financial, Inc. As a result of the acquisition, loans acquired were
Average Total Loans
Average total loans for the second quarter of 2026 were
Total Loans Outstanding
Total loans outstanding as of June 30, 2026, were
Norman D. Lowery, President and Chief Executive Officer, commented “We are pleased with our second quarter results. The quarter marked the eleventh consecutive quarter of loan growth, contributing to another quarter of record net income. Our net interest margin and profitability remain strong with a
Average Total Deposits
Average total deposits for the quarter ended June 30, 2026, were
Total Deposits
Total deposits were
Shareholders’ Equity
Shareholders’ equity at June 30, 2026, 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 second quarter of 2026 was a record
Net Interest Margin
The net interest margin for the quarter ended June 30, 2026, was
Nonperforming Loans
Nonperforming loans as of June 30, 2026, were
Credit Loss Provision
The provision for credit losses for the three months ended June 30, 2026, was
Net Charge-Offs
In the second quarter of 2026 net charge-offs were
Allowance for Credit Losses
The Corporation’s allowance for credit losses as of June 30, 2026, was
Non-Interest Income
Non-interest income for the three months ended June 30, 2026 and 2025 was
Non-Interest Expense
Non-interest expense for the three months ended June 30, 2026, was
Efficiency Ratio
The Corporation’s efficiency ratio was
Income Taxes
Income tax expense for the three months ended June 30, 2026, 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 | Six Months Ended | |||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||
| END OF PERIOD BALANCES | ||||||||||||||
| Assets | $ | 6,178,309 | $ | 6,128,589 | $ | 5,602,969 | $ | 6,178,309 | $ | 5,602,969 | ||||
| Deposits | $ | 4,833,399 | $ | 4,842,386 | $ | 4,662,889 | $ | 4,833,399 | $ | 4,662,889 | ||||
| Loans, including net deferred loan costs | $ | 4,467,897 | $ | 4,423,921 | $ | 3,896,563 | $ | 4,467,897 | $ | 3,896,563 | ||||
| Allowance for Credit Losses | $ | 50,938 | $ | 52,338 | $ | 47,087 | $ | 50,938 | $ | 47,087 | ||||
| Total Equity | $ | 675,785 | $ | 655,288 | $ | 587,668 | $ | 675,785 | $ | 587,668 | ||||
| Tangible Common Equity (a) | $ | 558,687 | $ | 536,659 | $ | 470,894 | $ | 558,687 | $ | 470,894 | ||||
| AVERAGE BALANCES | ||||||||||||||
| Total Assets | $ | 6,126,618 | $ | 5,850,090 | $ | 5,529,225 | $ | 5,988,354 | $ | 5,518,996 | ||||
| Earning Assets | $ | 5,799,062 | $ | 5,523,970 | $ | 5,213,220 | $ | 5,661,516 | $ | 5,203,849 | ||||
| Investments | $ | 1,256,470 | $ | 1,263,714 | $ | 1,244,208 | $ | 1,260,092 | $ | 1,255,254 | ||||
| Loans | $ | 4,452,394 | $ | 4,160,366 | $ | 3,877,246 | $ | 4,306,380 | $ | 3,859,499 | ||||
| Total Deposits | $ | 4,868,890 | $ | 4,663,780 | $ | 4,651,051 | $ | 4,766,335 | $ | 4,650,967 | ||||
| Interest-Bearing Deposits | $ | 3,987,492 | $ | 3,718,070 | $ | 3,843,143 | $ | 3,852,781 | $ | 3,840,411 | ||||
| Interest-Bearing Liabilities | $ | 554,935 | $ | 480,073 | $ | 269,338 | $ | 517,504 | $ | 265,256 | ||||
| Total Equity | $ | 663,602 | $ | 663,896 | $ | 576,288 | $ | 663,749 | $ | 570,515 | ||||
| INCOME STATEMENT DATA | ||||||||||||||
| Net Interest Income | $ | 61,222 | $ | 56,933 | $ | 52,671 | $ | 118,155 | $ | 104,646 | ||||
| Net Interest Income Fully Tax Equivalent (b) | $ | 62,739 | $ | 58,397 | $ | 54,091 | $ | 121,137 | $ | 107,464 | ||||
| Provision for Credit Losses | $ | 1,300 | $ | 2,550 | $ | 1,950 | $ | 3,850 | $ | 3,900 | ||||
| Non-interest Income | $ | 10,646 | $ | 11,217 | $ | 10,381 | $ | 21,863 | $ | 20,892 | ||||
| Non-interest Expense | $ | 42,529 | $ | 40,879 | $ | 38,276 | $ | 83,408 | $ | 75,035 | ||||
| Net Income | $ | 22,743 | $ | 19,804 | $ | 18,586 | $ | 42,547 | $ | 36,992 | ||||
| PER SHARE DATA | ||||||||||||||
| Basic and Diluted Net Income Per Common Share | $ | 1.91 | $ | 1.67 | $ | 1.57 | $ | 3.58 | $ | 3.12 | ||||
| Cash Dividends Declared Per Common Share | $ | 0.56 | $ | 0.56 | $ | 0.51 | $ | 1.12 | $ | 1.02 | ||||
| Book Value Per Common Share | $ | 56.83 | $ | 55.10 | $ | 49.59 | $ | 56.83 | $ | 49.59 | ||||
| Tangible Book Value Per Common Share (c) | $ | 45.96 | $ | 45.13 | $ | 38.78 | $ | 46.98 | $ | 39.74 | ||||
| Basic Weighted Average Common Shares Outstanding | 11,892 | 11,885 | 11,851 | 11,888 | 11,847 | |||||||||
____________________________
(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 | Six Months Ended | ||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||
| Return on average assets | 1.48 | % | 1.35 | % | 1.34 | % | 1.42 | % | 1.34 | % |
| Return on average common shareholder's equity | 13.71 | % | 11.93 | % | 12.90 | % | 12.82 | % | 12.97 | % |
| Efficiency ratio | 57.95 | % | 58.72 | % | 59.37 | % | 58.33 | % | 58.46 | % |
| Average equity to average assets | 10.83 | % | 11.35 | % | 10.42 | % | 11.08 | % | 10.34 | % |
| Net interest margin (a) | 4.33 | % | 4.23 | % | 4.15 | % | 4.28 | % | 4.13 | % |
| Net charge-offs to average loans and leases | 0.24 | % | 0.15 | % | 0.18 | % | 0.20 | % | 0.18 | % |
| Credit loss reserve to loans and leases | 1.14 | % | 1.18 | % | 1.21 | % | 1.14 | % | 1.21 | % |
| Credit loss reserve to nonperforming loans | 188.21 | % | 183.89 | % | 480.72 | % | 188.21 | % | 480.72 | % |
| Nonperforming loans to loans and leases | 0.61 | % | 0.64 | % | 0.25 | % | 0.61 | % | 0.25 | % |
| Tier 1 leverage | 10.81 | % | 11.03 | % | 10.91 | % | 10.81 | % | 10.91 | % |
| Risk-based capital - Tier 1 | 12.78 | % | 12.50 | % | 12.86 | % | 12.78 | % | 12.86 | % |
____________________________
(a) Net interest margin is calculated on a tax equivalent basis.
| Asset Quality | Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Accruing loans and leases past due 30-89 days | $ | 12,726 | $ | 19,882 | $ | 22,303 | $ | 12,726 | $ | 22,303 | ||||
| Accruing loans and leases past due 90 days or more | $ | 3,030 | $ | 938 | $ | 1,917 | $ | 3,030 | $ | 1,917 | ||||
| Nonaccrual loans and leases | $ | 24,035 | $ | 27,524 | $ | 7,878 | $ | 24,035 | $ | 7,878 | ||||
| Other real estate owned | $ | 1,039 | $ | 184 | $ | 383 | $ | 1,039 | $ | 383 | ||||
| Nonperforming loans and other real estate owned | $ | 28,104 | $ | 28,646 | $ | 10,178 | $ | 28,104 | $ | 10,178 | ||||
| Total nonperforming assets | $ | 30,755 | $ | 31,288 | $ | 13,087 | $ | 30,755 | $ | 13,087 | ||||
| Gross charge-offs | $ | 4,084 | $ | 2,945 | $ | 2,928 | $ | 7,029 | $ | 6,169 | ||||
| Recoveries | $ | 1,384 | $ | 1,418 | $ | 1,230 | $ | 2,802 | $ | 2,624 | ||||
| Net charge-offs/(recoveries) | $ | 2,700 | $ | 1,527 | $ | 1,698 | $ | 4,227 | $ | 3,545 | ||||
| Non-GAAP Reconciliations | Three Months Ended June 30, | ||||
| 2026 | 2025 | ||||
| ($in thousands, except EPS) | |||||
| Income before Income Taxes | $ | 28,039 | $ | 22,826 | |
| Provision for credit losses | 1,300 | 1,950 | |||
| Provision for unfunded commitments | — | 100 | |||
| Pre-tax, Pre-provision Income | $ | 29,339 | $ | 24,876 | |
| Non-GAAP Reconciliations | Six Months Ended June 30, | ||||
| 2026 | 2025 | ||||
| ($ in thousands, except EPS) | |||||
| Income before Income Taxes | $ | 52,760 | $ | 46,603 | |
| Provision for credit losses | 3,850 | 3,900 | |||
| Provision for unfunded commitments | — | 100 | |||
| Pre-tax, Pre-provision Income | $ | 56,610 | $ | 50,603 | |
| CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data) | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 96,633 | $ | 130,369 | |||
| Federal funds sold | — | 475 | |||||
| Securities available-for-sale | 1,168,202 | 1,149,526 | |||||
| Loans: | |||||||
| Commercial | 2,424,325 | 2,375,344 | |||||
| Residential | 1,316,108 | 986,955 | |||||
| Consumer | 721,551 | 688,135 | |||||
| 4,461,984 | 4,050,434 | ||||||
| (Less) plus: | |||||||
| Net deferred loan costs | 5,913 | 4,869 | |||||
| Allowance for credit losses | (50,938 | ) | (47,995 | ) | |||
| 4,416,959 | 4,007,308 | ||||||
| Restricted stock | 23,475 | 18,536 | |||||
| Accrued interest receivable | 28,320 | 27,762 | |||||
| Premises and equipment, net | 88,313 | 78,582 | |||||
| Bank-owned life insurance | 137,146 | 131,286 | |||||
| Goodwill | 98,229 | 98,229 | |||||
| Other intangible assets | 18,869 | 16,234 | |||||
| Other real estate owned | 1,039 | 94 | |||||
| Other assets | 101,124 | 97,725 | |||||
| TOTAL ASSETS | $ | 6,178,309 | $ | 5,756,126 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Deposits: | |||||||
| Non-interest-bearing | $ | 998,972 | $ | 916,473 | |||
| Interest-bearing: | |||||||
| Certificates of deposit exceeding the FDIC insurance limits | 182,378 | 135,605 | |||||
| Other interest-bearing deposits | 3,652,049 | 3,499,033 | |||||
| 4,833,399 | 4,551,111 | ||||||
| Short-term borrowings | 310,091 | 292,468 | |||||
| FHLB advances | 291,461 | 188,208 | |||||
| Other liabilities | 67,573 | 73,470 | |||||
| TOTAL LIABILITIES | 5,502,524 | 5,105,257 | |||||
| Shareholders’ equity | |||||||
| Common stock, $.125 stated value per share; | |||||||
| Authorized shares-40,000,000 | |||||||
| Issued shares-16,206,804 in 2026 and 16,190,157 in 2025 | |||||||
| Outstanding shares-11,891,896 in 2026 and 11,880,759 in 2025 | 2,022 | 2,021 | |||||
| Additional paid-in capital | 147,844 | 147,442 | |||||
| Retained earnings | 771,022 | 741,793 | |||||
| Accumulated other comprehensive income/(loss) | (91,065 | ) | (86,681 | ) | |||
| Less: Treasury shares at cost-4,314,908 in 2026 and 4,309,398 in 2025 | (154,038 | ) | (153,706 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 675,785 | 650,869 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 6,178,309 | $ | 5,756,126 | |||
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (unaudited) | |||||||||||||||
| INTEREST INCOME: | |||||||||||||||
| Loans, including related fees | $ | 73,986 | $ | 64,775 | $ | 141,507 | $ | 128,387 | |||||||
| Securities: | |||||||||||||||
| Taxable | 6,354 | 5,915 | 12,890 | 11,917 | |||||||||||
| Tax-exempt | 3,014 | 2,622 | 5,878 | 5,226 | |||||||||||
| Other | 865 | 865 | 1,890 | 1,679 | |||||||||||
| TOTAL INTEREST INCOME | 84,219 | 74,177 | 162,165 | 147,209 | |||||||||||
| INTEREST EXPENSE: | |||||||||||||||
| Deposits | 17,750 | 18,495 | 34,379 | 36,694 | |||||||||||
| Short-term borrowings | 2,620 | 1,398 | 4,972 | 3,091 | |||||||||||
| Other borrowings | 2,627 | 1,613 | 4,659 | 2,778 | |||||||||||
| TOTAL INTEREST EXPENSE | 22,997 | 21,506 | 44,010 | 42,563 | |||||||||||
| NET INTEREST INCOME | 61,222 | 52,671 | 118,155 | 104,646 | |||||||||||
| Provision for credit losses | 1,300 | 1,950 | 3,850 | 3,900 | |||||||||||
| NET INTEREST INCOME AFTER PROVISION | |||||||||||||||
| FOR LOAN LOSSES | 59,922 | 50,721 | 114,305 | 100,746 | |||||||||||
| NON-INTEREST INCOME: | |||||||||||||||
| Trust and financial services | 1,503 | 1,490 | 2,994 | 2,883 | |||||||||||
| Service charges and fees on deposit accounts | 8,217 | 7,554 | 15,599 | 15,139 | |||||||||||
| Other service charges and fees | 345 | 256 | 719 | 572 | |||||||||||
| Securities gains/(losses), net | (109 | ) | (3 | ) | (109 | ) | (3 | ) | |||||||
| Interchange income | 214 | 180 | 400 | 394 | |||||||||||
| Loan servicing fees | 333 | 326 | 659 | 492 | |||||||||||
| Gain on sales of mortgage loans | 493 | 430 | 787 | 655 | |||||||||||
| Bargain purchase gain (reversal) | (683 | ) | — | 33 | — | ||||||||||
| Other | 333 | 148 | 781 | 760 | |||||||||||
| TOTAL NON-INTEREST INCOME | 10,646 | 10,381 | 21,863 | 20,892 | |||||||||||
| NON-INTEREST EXPENSE: | |||||||||||||||
| Salaries and employee benefits | 21,272 | 19,689 | 42,633 | 38,937 | |||||||||||
| Occupancy expense | 2,714 | 2,472 | 5,672 | 5,148 | |||||||||||
| Equipment expense | 5,297 | 4,587 | 10,637 | 9,092 | |||||||||||
| FDIC Expense | 690 | 795 | 1,380 | 1,545 | |||||||||||
| Other | 12,556 | 10,733 | 23,086 | 20,313 | |||||||||||
| TOTAL NON-INTEREST EXPENSE | 42,529 | 38,276 | 83,408 | 75,035 | |||||||||||
| INCOME BEFORE INCOME TAXES | 28,039 | 22,826 | 52,760 | 46,603 | |||||||||||
| Provision for income taxes | 5,296 | 4,240 | 10,213 | 9,611 | |||||||||||
| NET INCOME | 22,743 | 18,586 | 42,547 | 36,992 | |||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
| Change in unrealized gains/(losses) on securities, net of reclassifications and taxes | 4,132 | 2,946 | (4,542 | ) | 14,046 | ||||||||||
| Change in funded status of post retirement benefits, net of taxes | 79 | 2 | 158 | 5 | |||||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 26,954 | $ | 21,534 | $ | 38,163 | $ | 51,043 | |||||||
| PER SHARE DATA | |||||||||||||||
| Basic and Diluted Earnings per Share | $ | 1.91 | $ | 1.57 | $ | 3.58 | $ | 3.12 | |||||||
| Weighted average number of shares outstanding (in thousands) | 11,892 | 11,851 | 11,888 | 11,847 | |||||||||||
