TERRE HAUTE, Ind., Feb. 03, 2026 (GLOBE NEWSWIRE) -- First Financial Corporation $(THFF)$ 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; 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 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; 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 $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: rmchargue@first-online.com
Three Months Ended Year Ended
---------------------------------- ----------------------
December September December December December
31, 30, 31, 31, 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 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 Year Ended
------------------------------------- ----------------------
December September December December December
31, 30, 31, 31, 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 September December December December
31, 30, 31, 31, 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
======= ======= =======
(END) Dow Jones Newswires
February 03, 2026 10:00 ET (15:00 GMT)