First Financial Corporation Reports First Quarter Results
THFF
Published on 04/28/2026 at 09:30 am EDT
TERRE HAUTE, Ind., April 28, 2026 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the first quarter of 2026.
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 $292 million, and deposits acquired were $313 million. Additionally, we recorded a bargain purchase gain of $716 thousand. Included in the variances in the following discussion are the values provided in this paragraph.
Average Total Loans
Average total loans for the first quarter of 2026 were $4.16 billion versus $3.84 billion for the comparable period in 2025, an increase of $319 million or 8.29%. On a linked quarter basis, average loans increased $186 million or 4.69% from $3.97 billion as of December 31, 2025.
Total Loans Outstanding
Total loans outstanding as of March 31, 2026, were $4.42 billion compared to $3.85 billion as of March 31, 2025, an increase of $570 million or 14.79%. On a linked quarter basis, total loans increased $368.6 million or 9.09% from $4.06 billion as of December 31, 2025. Organic growth of $77 million 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 first quarter results. In the first quarter, we surpassed $6 billion in total assets for the first time, and it marked the tenth consecutive quarter of loan growth, which surpassed $4 billion in loans for the first time last quarter. Our margin remains strong at 4.23% and credit quality remains stable.”
Average Total Deposits
Average total deposits for the quarter ended March 31, 2026, were $4.66 billion versus $4.65 billion as of March 31, 2025, an increase of $13 million, or 0.28%. On a linked quarter basis, average deposits increased $23 million or 0.49% from $4.64 billion as of December 31, 2025.
Total Deposits
Total deposits were $4.84 billion as of March 31, 2026, compared to $4.64 billion as of March 31, 2025. On a linked quarter basis, total deposits increased $291.3 million or 6.40% from $4.55 billion as of December 31, 2025. Non-interest bearing deposits were $1.1 billion, and time deposits were $812.2 million as of December 31, 2025, compared to $856.1 million and $726 million, respectively for the same period of 2025.
Shareholders’ Equity
Shareholders’ equity at March 31, 2026, was $655.3 million compared to $571.9 million on March 31, 2025. 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 $0.56 per share quarterly dividend in January and declared a $0.56 quarterly dividend, which was paid on April 15, 2026.
Book Value Per Share
Book Value per share was $55.10 as of March 31, 2026, compared to $48.26 as of March 31, 2025, an increase of $6.84 per share, or 14.17%. Tangible Book Value per share was $45.13 as of March 31, 2026, compared to $38.13 as of March 31, 2025, an increase of $7.00 per share or 18.36%.
Tangible Common Equity to Tangible Asset Ratio
The Corporation’s tangible common equity to tangible asset ratio was 8.93% at March 31, 2026, compared to 8.32% at March 31, 2025.
Net Interest Income
Net interest income for the first quarter of 2026 was a record $56.9 million, compared to $52.0 million reported for the same period of 2025, an increase of $5.0 million, or 9.5%. Interest income increased $4.9 million and interest expense decreased $44 thousand year over year.
Net Interest Margin
The net interest margin for the quarter ended March 31, 2026, was 4.23% compared to the 4.11% reported at March 31, 2025.
Nonperforming Loans
Nonperforming loans as of March 31, 2026, were $28.5 million versus $10.2 million as of March 31, 2025. The ratio of nonperforming loans to total loans and leases was 0.64% as of March 31, 2026, versus 0.26% as of March 31, 2025. On a linked quarter basis, nonperforming loans were $28.6 million, and the ratio of nonperforming loans to total loans and leases was 0.70% as of December 31, 2025.
Credit Loss Provision
The provision for credit losses for the three months ended March 31, 2026, was $2.6 million, compared to $2.0 million for the same period 2025.
Net Charge-Offs
In the first quarter of 2026 net charge-offs were $1.5 million compared to $1.8 million in the same period of 2025.
Allowance for Credit Losses
The Corporation’s allowance for credit losses as of March 31, 2026, was $52.3 million compared to $46.8 million as of March 31, 2025. The allowance for credit losses as a percent of total loans was 1.18% as of March 31, 2026, compared to 1.22% as of March 31, 2025. On a linked quarter basis, the allowance for credit losses as a percent of total loans remained stable compared to December 31, 2025.
Non-Interest Income
Non-interest income for the three months ended March 31, 2026 and 2025 was $11.2 million and $10.5 million, respectively.
Non-Interest Expense
Non-interest expense for the three months ended March 31, 2026, was $40.9 million compared to $36.8 million in 2025.
Efficiency Ratio
The Corporation’s efficiency ratio was 58.72% for the quarter ending March 31, 2026, versus 57.54% for the same period in 2025.
Income Taxes
Income tax expense for the three months ended March 31, 2026, was $4.9 million versus $5.4 million for the same period in 2025. The effective tax rate for 2026 was 19.89% compared to 22.59% for 2025.
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. McHargueChief Financial OfficerP: 812-238-6334E: [email protected]
(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.
(a) Net interest margin is calculated on a tax equivalent basis.
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