First Financial Corporation Reports First Quarter Results

TERRE HAUTE, Ind., April 28, 2026 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the first quarter of 2026.

• Net income was $19.8 million compared to $18.4 million reported for the same period of 2025;
• Diluted net income per common share of $1.67 compared to $1.55 for the same period of 2025;
• Return on average assets was 1.35% compared to 1.34% for the three months ended March 31, 2025;
• Provision for credit losses was $2.6 million compared to provision of $2.0 million for the first quarter 2025; and
• Pre-tax, pre-provision net income was $27.3 million compared to $25.7 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 $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. McHargue
Chief Financial Officer
P: 812-238-6334
E: [email protected]

             Three Months Ended   March 31, December 31, March 31,   2026 2025 2025 END OF PERIOD BALANCES          Assets $6,128,589 $5,756,126 $5,549,094 Deposits $4,842,386 $4,551,111 $4,640,003 Loans, including net deferred loan costs $4,423,921 $4,055,303 $3,854,020 Allowance for Credit Losses $52,338 $47,995 $46,835 Total Equity $655,288 $650,869 $571,945 Tangible Common Equity(a) $536,659 $535,262 $451,874            AVERAGE BALANCES          Total Assets $5,850,090 $5,654,790 $5,508,767 Earning Assets $5,523,970 $5,334,253 $5,194,478 Investments $1,263,714 $1,258,077 $1,266,300 Loans $4,160,366 $3,973,985 $3,841,752 Total Deposits $4,663,780 $4,641,267 $4,650,883 Interest-Bearing Deposits $3,718,070 $3,790,653 $3,837,679 Interest-Bearing Liabilities $480,073 $326,493 $261,174 Total Equity $663,896 $640,172 $564,742            INCOME STATEMENT DATA          Net Interest Income $56,933 $60,619 $51,975 Net Interest Income Fully Tax Equivalent(b) $58,397 $62,003 $53,373 Provision for Credit Losses $2,550 $2,350 $1,950 Non-interest Income $11,217 $9,931 $10,511 Non-interest Expense $40,879 $41,843 $36,759 Net Income $19,804 $21,454 $18,406            PER SHARE DATA          Basic and Diluted Net Income Per Common Share $1.67 $1.81 $1.55 Cash Dividends Declared Per Common Share $0.56 $0.56 $0.51 Book Value Per Common Share $55.10 $54.78 $48.26 Tangible Book Value Per Common Share(c) $45.13 $44.31 $38.13 Basic Weighted Average Common Shares Outstanding  11,885  11,865  11,842 

(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 Ratios Three Months Ended   March 31, December 31, March 31,   2026 2025 2025 Return on average assets 1.35%1.52%1.34%Return on average common shareholder's equity 11.93%13.41%13.04%Efficiency ratio 58.72%58.17%57.54%Average equity to average assets 11.35%11.32%10.25%Net interest margin(a) 4.23%4.66%4.11%Net charge-offs to average loans and leases 0.15%0.18%0.19%Credit loss reserve to loans and leases 1.18%1.18%1.22%Credit loss reserve to nonperforming loans 183.89%167.94%460.57%Nonperforming loans to loans and leases 0.64%0.70%0.26%Tier 1 leverage 11.03%11.25%10.63%Risk-based capital - Tier 1 12.50%13.21%12.70%

(a)   Net interest margin is calculated on a tax equivalent basis.

           Asset Quality Three Months Ended   March 31, December 31, March 31,   2026 2025 2025 Accruing loans and leases past due 30-89 days $19,882 $17,294 $17,007 Accruing loans and leases past due 90 days or more $938 $1,083 $1,109 Nonaccrual loans and leases $27,524 $ 27,495 $9,060 Other real estate owned $184 $94 $560 Nonperforming loans and other real estate owned $28,646 $ 28,672 $10,729 Total nonperforming assets $31,288 $31,522 $13,631 Gross charge-offs $2,945 $3,415 $3,241 Recoveries $1,418 $1,649 $1,394 Net charge-offs/(recoveries) $1,527 $1,766 $1,847 

       Non-GAAP Reconciliations Three Months Ended March 31,  2026 2025($in thousands, except EPS)      Income before Income Taxes $24,721 $23,777Provision for credit losses  2,550  1,950Provision for unfunded commitments  —  —Pre-tax, Pre-provision Income $27,271 $25,727

CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)         March 31, December 31,  2026
 2025
  (unaudited)ASSETS      Cash and due from banks $96,887  $130,369 Federal funds sold  —   475 Securities available-for-sale  1,170,768   1,149,526 Loans:      Commercial  2,525,068   2,375,344 Residential  1,187,587   986,955 Consumer  703,322   688,135    4,415,977   4,050,434 (Less) plus:      Net deferred loan costs  7,944   4,869 Allowance for credit losses  (52,338)  (47,995)   4,371,583   4,007,308 Restricted stock  18,553   18,536 Accrued interest receivable  27,881   27,762 Premises and equipment, net  88,692   78,582 Bank-owned life insurance  136,453   131,286 Goodwill  98,229   98,229 Other intangible assets  20,400   16,234 Other real estate owned  184   94 Other assets  98,959   97,725 TOTAL ASSETS $6,128,589  $5,756,126        LIABILITIES AND SHAREHOLDERS’ EQUITY      Deposits:      Non-interest-bearing $1,139,666  $916,473 Interest-bearing:      Certificates of deposit exceeding the FDIC insurance limits  135,035   135,605 Other interest-bearing deposits  3,567,685   3,499,033    4,842,386   4,551,111 Short-term borrowings  349,781   292,468 FHLB advances  208,756   188,208 Other liabilities  72,378   73,470 TOTAL LIABILITIES  5,473,301   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  2,021   2,021 Additional paid-in capital  147,643   147,442 Retained earnings  754,938   741,793 Accumulated other comprehensive income/(loss)  (95,276)  (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  655,288   650,869 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $6,128,589  $5,756,126 

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)          Three Months Ended   March 31,   2026
 2025
        INTEREST INCOME:       Loans, including related fees $67,521  $63,612 Securities:       Taxable  6,536   6,002 Tax-exempt  2,864   2,604 Other  1,025   814 TOTAL INTEREST INCOME  77,946   73,032 INTEREST EXPENSE:       Deposits  16,629   18,199 Short-term borrowings  2,352   1,693 Other borrowings  2,032   1,165 TOTAL INTEREST EXPENSE  21,013   21,057 NET INTEREST INCOME  56,933   51,975 Provision for credit losses  2,550   1,950 NET INTEREST INCOME AFTER PROVISION       FOR LOAN LOSSES  54,383   50,025 NON-INTEREST INCOME:       Trust and financial services  1,491   1,393 Service charges and fees on deposit accounts  7,382   7,585 Other service charges and fees  374   316 Interchange income  186   214 Loan servicing fees  326   165 Gain on sales of mortgage loans  294   225 Bargain purchase gain  716   — Other  448   613 TOTAL NON-INTEREST INCOME  11,217   10,511 NON-INTEREST EXPENSE:       Salaries and employee benefits  21,361   19,248 Occupancy expense  2,958   2,676 Equipment expense  5,340   4,505 FDIC Expense  690   750 Other  10,530   9,580 TOTAL NON-INTEREST EXPENSE  40,879   36,759 INCOME BEFORE INCOME TAXES  24,721   23,777 Provision for income taxes  4,917   5,371 NET INCOME  19,804   18,406 OTHER COMPREHENSIVE INCOME (LOSS)       Change in unrealized gains/(losses) on securities, net of reclassifications and taxes  (8,674)  11,100 Change in funded status of post retirement benefits, net of taxes  79   3 COMPREHENSIVE INCOME (LOSS) $11,209  $29,509 PER SHARE DATA       Basic and Diluted Earnings per Share $1.67  $1.55 Weighted average number of shares outstanding (in thousands)  11,885   11,842