First Financial Corporation Reports 2025 Results

View all news February 3, 2026 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 to 1.18% 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; andPre-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 to 0.92% 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; andPre-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 $3.97 billion versus $3.79 billion for the comparable period in 2024, an increase of $183 million or 4.84%. On a linked quarter basis, average loans increased $45 million or 1.15% from $3.93 billion as of September 30, 2025. Total Loans Outstanding Total loans outstanding as of December 31, 2025, were $4.06 billion compared to $3.84 billion as of December 31, 2024, an increase of $218 million or 5.69%. On a linked quarter basis, total loans increased $87.9 million or 2.22% from $3.97 billion as of September 30, 2025. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans. 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 $4 billion in loans for the first time. Additionally, we achieved another record in net interest income and record net income for 2025. We have good momentum as we enter 2026, our capital remains strong and we believe we are well positioned for the current market environment.” Average Total Deposits Average total deposits for the quarter ended December 31, 2025, were $4.64 billion versus $4.76 billion as of December 31, 2024, a decrease of $116 million, or 2.44%. On a linked quarter basis, average deposits increased $50 million or 1.08% from $4.59 billion as of September 30, 2025. Total Deposits Total deposits were $4.55 billion as of December 31, 2025, compared to $4.72 billion as of December 31, 2024. On a linked quarter basis, total deposits decreased $64.2 million or 1.39% from $4.62 billion as of September 30, 2025. Non-interest bearing deposits were $916.5 million, and time deposits were $704.0 million as of December 31, 2025, compared to $859.0 million and $749.4 million, respectively for the same period of 2024. Shareholders’ Equity Shareholders’ equity at December 31, 2025, was $650.9 million compared to $549.0 million on December 31, 2024. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.51 per share quarterly dividend in October and declared a $0.56 quarterly dividend, which was paid on January 15, 2026. Book Value Per Share Book Value per share was $54.78 as of December 31, 2025, compared to $46.36 as of December 31, 2024, an increase of $8.42 per share, or 18.17%. Tangible Book Value per share was $45.15 as of December 31, 2025, compared to $36.10 as of December 31, 2024, an increase of $9.05 per share or 25.07%. Tangible Common Equity to Tangible Asset Ratio The Corporation’s tangible common equity to tangible asset ratio was 9.51% at December 31, 2025, compared to 7.86% at December 31, 2024. Net Interest Income Net interest income for the fourth quarter of 2025 was a record $60.6 million, compared to $49.6 million reported for the same period of 2024, an increase of $11.0 million, or 22.2%. Interest income increased $8.9 million and interest expense decreased $2.2 million year over year. The quarter included $4.6 million interest recovery and fees on non-accrual from the resolution of an impaired credit acquired in a merger in 2019. Net Interest Margin The net interest margin for the quarter ended December 31, 2025, was 4.66% compared to the 3.94% reported at December 31, 2024. Nonperforming Loans Nonperforming loans as of December 31, 2025, were $14.8 million versus $13.3 million as of December 31, 2024. The ratio of nonperforming loans to total loans and leases was 0.36% as of December 31, 2025, versus 0.35% as of December 31, 2024. On a linked quarter basis, nonperforming loans were $19.3 million, and the ratio of nonperforming loans to total loans and leases was 0.49% as of September 30, 2025. Credit Loss Provision The provision for credit losses for the three months ended December 31, 2025, was $2.4 million, compared to $2.0 million for the same period 2024. Net Charge-Offs In the fourth quarter of 2025 net charge-offs were $1.8 million compared to $1.4 million in the same period of 2024. Allowance for Credit Losses The Corporation’s allowance for credit losses as of December 31, 2025, was $48.0 million compared to $46.7 million as of December 31, 2024. The allowance for credit losses as a percent of total loans was 1.18% as of December 31, 2025, compared to 1.22% as of December 31, 2024. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased two basis points from 1.20% as of September 30, 2025. Non-Interest Income Non-interest income for the three months ended December 31, 2025 and 2024 was $9.9 million and $12.2 million, respectively. The quarter included $4.6 million of losses associated with an investment portfolio restructuring in which $80 million of securities were sold and reinvested at an approximately two percent higher yield. There was also a $2.4 million accrual adjustment with the Corporation’s transition to paid time-off from the existing vacation and sick time accruals. Non-Interest Expense Non-interest expense for the three months ended December 31, 2025, was $41.8 million compared to $39.8 million in 2024. The quarter included $1.4 million of expenses related to the pending acquisition of CedarStone Financial announced on November 6, 2025, and an additional $1.3 million of one-time expenses. Efficiency Ratio The Corporation’s efficiency ratio was 58.17% for the quarter ending December 31, 2025, versus 62.98% for the same period in 2024. Income Taxes Income tax expense for the three months ended December 31, 2025, was $4.9 million versus $3.8 million for the same period in 2024. The effective tax rate for 2025 was 19.76% compared to 17.28% for 2024. 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: [email protected] Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2025 2025 2024 2025 2024END OF PERIOD BALANCES Assets$5,756,126 $5,669,686 $5,560,348 $5,756,126 $5,560,348Deposits$4,551,111 $4,615,305 $4,718,914 $4,551,111 $4,718,914Loans, including net deferred loan costs$4,055,303 $3,967,401 $3,837,141 $4,055,303 $3,837,141Allowance for Credit Losses$47,995 $47,411 $46,732 $47,995 $46,732Total Equity$649,725 $622,218 $549,041 $649,725 $549,041Tangible 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 $5,154,320Earning Assets$5,334,253 $5,270,173 $5,196,352 $5,253,031 $4,871,293Investments$1,258,077 $1,248,519 $1,311,415 $1,254,276 $1,310,263Loans$3,973,985 $3,928,817 $3,790,515 $3,905,450 $3,468,534Total Deposits$4,641,267 $4,591,531 $4,757,438 $4,633,683 $4,405,679Interest-Bearing Deposits$3,790,653 $3,783,393 $3,925,740 $3,813,717 $3,767,259Interest-Bearing Liabilities$326,493 $359,579 $134,553 $304,146 $166,377Total 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 $174,986Net Interest Income Fully Tax Equivalent(b)$62,003 $56,033 $50,985 $225,500 $180,586Provision for Credit Losses$2,350 $1,950 $2,000 $8,200 $16,166Non-interest Income$9,931 $11,149 $12,213 $41,972 $42,772Non-interest Expense$41,843 $38,048 $39,801 $154,926 $144,438Net 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 $4.00Cash Dividends Declared Per Common Share$0.56 $0.51 $0.51 $2.09 $1.86Book Value Per Common Share$54.78 $52.50 $46.36 $54.78 $46.36Tangible Book Value Per Common Share(c)$44.31 $40.96 $36.77 $45.15 $36.10Basic 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 75%. (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 RatiosThree Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2025 2025 2024 2025 2024 Return on average assets1.52% 1.48% 1.18% 1.42% 0.92%Return on average common shareholder's equity13.41% 13.82% 11.68% 13.30% 8.82%Efficiency ratio58.17% 56.63% 62.98% 57.92% 64.67%Average equity to average assets11.32% 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 leases0.18% 0.17% 0.15% 0.18% 0.35%Credit loss reserve to loans and leases1.18% 1.20% 1.22% 1.18% 1.22%Credit loss reserve to nonperforming loans325.30% 246.14% 351.37% 325.30% 351.37%Nonperforming loans to loans and leases0.36% 0.49% 0.35% 0.36% 0.35%Tier 1 leverage11.25% 11.05% 10.38% 11.25% 10.38%Risk-based capital - Tier 113.21% 13.12% 12.43% 13.21% 12.43% ____________________ (a) Net interest margin is calculated on a tax equivalent basis. Asset QualityThree Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2025 2025 2024 2025 2024Accruing loans and leases past due 30-89 days$17,294 $14,388 $22,486 $17,294 $22,486Accruing loans and leases past due 90 days or more$1,083 $1,792 $1,821 $1,083 $1,821Nonaccrual loans and leases$13,671 $17,470 $11,479 $13,671 $11,479Other real estate owned$94 $138 $523 $94 $523Nonperforming loans and other real estate owned$14,848 $19,400 $13,823 $14,848 $13,823Total nonperforming assets$17,698 $22,243 $16,719 $17,698 $16,719Gross charge-offs$3,415 $3,226 $3,070 $12,810 $19,289Recoveries$1,649 $1,600 $1,633 $5,873 $7,082Net charge-offs/(recoveries)$1,766 $1,626 $1,437 $6,937 $12,207 Non-GAAP ReconciliationsThree Months Ended December 31, 2025 2024($ in thousands, except EPS) Income before Income Taxes$26,357 $20,014Provision for credit losses 2,350 2,000Provision for unfunded commitments 700 300Pre-tax, Pre-provision Income$29,407 $22,314 Non-GAAP ReconciliationsYear Ended December 31, 2025 2024($ in thousands, except EPS) Income before Income Taxes$98,714 $57,154Provision for credit losses 8,200 16,166Provision for unfunded commitments 800 100Pre-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  Source: First Financial 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