First Financial Corporation Reports 2025 Results

TERRE HAUTE, Ind., Feb. 03, 2026 (GLOBE NEWSWIRE) -- First Financial Corporation (NASDAQ:THFF) today announced results for the fourth quarter of 2025.

The Corporation further reported results for the year ended December 31, 2025:

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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

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(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.

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