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FIRST FINANCIAL CORP /IN/ (THFF)·Q1 2025 Earnings Summary

Executive Summary

  • EPS of $1.55 materially beat Wall Street consensus of $1.30*, driven by a record net interest income and margin expansion .
  • “Record” net interest income of $52.0M and net interest margin of 4.11% continued the multi-quarter uptrend; efficiency ratio improved to 57.54% from 62.98% in Q4 and 67.21% YoY .
  • Revenue came in below consensus ($60.5M* actual vs $62.1M* est.), while noninterest expense rose year over year, partially offset by stronger efficiency and asset quality .
  • Management highlighted six consecutive quarters of loan growth and ongoing NIM expansion as catalysts, with SimplyBank acquisition plus organic growth supporting deposits/loans and improved nonperforming loans .

Values with asterisk (*) retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Record net interest income ($52.0M) and rising NIM (4.11%) supported EPS strength and improved profitability metrics (ROA 1.34%; ROE 13.04%) .
  • Loan and deposit growth continued: loans outstanding rose to $3.85B (+20.7% YoY) and deposits to $4.64B (+13.0% YoY), aided by SimplyBank and organic growth .
  • Asset quality improved YoY: nonperforming loans fell to $10.2M (0.26% of loans), from $24.3M (0.76%) in Q1 2024, supporting stronger reserve coverage (ACL to NPL 461%) .
    • Quote: “We have had six consecutive quarters of loan growth and have had another record quarter of net interest income. Our net interest margin has also continued to expand.” — CEO Norman D. Lowery .

What Went Wrong

  • Revenue miss vs consensus ($60.5M* actual vs $62.1M* est.) despite strength in net interest income; risk of modest estimate recalibration near term*.
  • Noninterest expense increased YoY to $36.8M (from $33.4M) amid growth and integration, though efficiency improved .
  • Credit provision edged up YoY ($2.0M vs $1.8M) and net charge-offs were slightly higher ($1.85M vs $1.52M YoY), reflecting normalized credit costs .

Values with asterisk (*) retrieved from S&P Global.

Financial Results

Consensus vs Actual (Q1 2025)

MetricConsensus EstimateActualSurprise
EPS ($USD)$1.30*$1.55 +$0.25 (+19.4%)*
Revenue ($USD Millions)$62.08*$60.54*-$1.54 (-2.5%)*

Values with asterisk (*) retrieved from S&P Global.

Quarterly Trends (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Net Income ($USD Millions)$8.74 $16.24 $18.41
Diluted EPS ($USD)$0.74 $1.37 $1.55
Net Interest Income ($USD Millions)$47.17 $49.60 $51.98
Noninterest Income ($USD Millions)$11.22 $12.21 $10.51
Provision for Credit Losses ($USD Millions)$9.40 $2.00 $1.95
Noninterest Expense ($USD Millions)$38.56 $39.80 $36.76

Margins and Profitability (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Net Interest Margin (%)3.78 3.94 4.11
Efficiency Ratio (%)64.43 62.98 57.54
ROA (%)0.64 1.18 1.34
ROE (%)6.39 11.68 13.04

Balance Sheet & Asset Quality (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Loans Outstanding ($USD Millions)$3,715.24 $3,837.14 $3,854.02
Deposits ($USD Millions)$4,717.49 $4,718.91 $4,640.00
Nonperforming Loans ($USD Millions)$14.10 $13.30 $10.20
NPL Ratio (%)0.38 0.35 0.26
Net Charge-offs ($USD Millions)$4.57 $1.44 $1.85
ACL / Loans (%)1.24 1.22 1.22

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025$0.51 declared/paid in Jan (Q4 release) $0.51 declared Mar 20; paid Apr 15 Maintained
Net Interest Margin (Outlook)Q4 2024 → Q1 2025“Expect continued improvement in coming quarters” “Net interest margin has also continued to expand” (positive trajectory re-affirmed) Maintained positive outlook
Formal Revenue/Margin/Tax GuidanceQ1 2025Not providedNot providedN/A

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in our document set; themes below reflect management communications from quarterly releases.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
Net Interest MarginQ3: NIM +21 bps QoQ to 3.78%; Q4: 3.94% with expected improvement NIM 4.11%; “continued to expand” Improving
Loan GrowthQ3: Loans +16% QoQ (+$511M) incl. SimplyBank Loans $3.85B; +20.7% YoY; 6th consecutive growth quarter Sustained growth
Deposits/MixQ3/Q4: Deposits +$585M QoQ post-acquisition; time deposits up YoY Deposits $4.64B; strong base; NI-bearing $856M; time deposits $726M Stable with higher time deposits
Asset QualityQ4: NPLs down YoY to $13.3M; ratio 0.35% NPLs further down to $10.2M; ratio 0.26%; stronger coverage Improving
Capital/RepurchaseQ3/Q4: No buybacks; 518,860 shares auth. remaining No buybacks; same authorization Unchanged

Management Commentary

  • “We have had six consecutive quarters of loan growth and have had another record quarter of net interest income. Our net interest margin has also continued to expand. We believe we are well positioned with our strong balance sheet, stable credit quality, and strong capital levels for continued growth.” — Norman D. Lowery, President & CEO .
  • Q4 framing: “We experienced another sound quarter of loan growth and record net interest income… we expect continued improvement in coming quarters.” — CEO commentary setting up Q1 trajectory .

Q&A Highlights

A Q1 2025 earnings call transcript for THFF was not found; Q&A highlights and any intra-quarter guidance clarifications were not available in our document set.

Estimates Context

  • EPS beat: $1.55 actual vs $1.30 consensus*, with three covering EPS estimates*, indicating material upside execution in net interest profitability and operating efficiency .
  • Revenue miss: $60.54M* actual vs $62.08M* consensus; two covering revenue estimates* suggest minor topline variance despite record net interest income.
  • Implications: Models may raise NIM/NII assumptions and profitability metrics while trimming near-term revenue lines to align with S&P actuals*, given the operating leverage and asset quality tailwinds evidenced in Q1.

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Margin expansion is the core narrative: NIM rose to 4.11% and efficiency ratio improved to 57.54%, supporting EPS upside and sustainable profitability .
  • Growth + quality: Loans reached $3.85B (+20.7% YoY) with improved asset quality (NPLs to 0.26%), de-risking credit outcomes while funding NII expansion .
  • Revenue optics: Despite record NII, S&P “revenue” printed below consensus*, a watchpoint for model comparability; focus on NII + fee trajectory and mix in subsequent quarters*.
  • Credit normalization: Provision ($2.0M) and net charge-offs ($1.85M) reflect disciplined risk management alongside higher reserve coverage (ACL/NPL 461%) .
  • Capital returns stable: Quarterly dividend maintained at $0.51 and no repurchases; authorization remains in place (518,860 shares) .
  • Near-term trading lens: Positive catalysts include continued NIM expansion and asset-quality improvement; monitor expense discipline and fee cadence to sustain operating leverage .
  • Medium-term thesis: Integration plus organic growth, stable deposits, and expanding margins position THFF for ROA/ROE lift, with potential upside if fee lines strengthen and credit trends remain benign .
Sources: THFF Q1 2025 8-K and press release, Q4 2024 and Q3 2024 financial 8-Ks, and THFF dividend press release. All figures cited to primary documents; Wall Street consensus values indicated with (*) are retrieved from S&P Global.