Name: FIRST FINANCIAL CORP /IN/ Q2 2025 Earnings Call
Start: 2025-07-22T00:00:00.000Z

Executive Summary

EPS of $1.57, up from $0.96 YoY and $1.55 QoQ; beat S&P Global consensus of $1.40 by ~$0.17 per share, driven by record net interest income and margin expansion to 4.15%* *
Revenue came in below S&P Global consensus ($61.1M actual vs $63.3M estimate*), as noninterest income was modest and deposit costs held steady* *
Net interest income hit a record $52.7M (+34% YoY), with ROAA at 1.34% and efficiency ratio improving to 59.37%, signaling strong core profitability
Credit quality improved: NPLs fell to $9.8M (0.25%), net charge-offs down sharply YoY to $1.7M; ACL coverage to NPLs ~481%
Dividend maintained at $0.51 per share (paid July 15), supporting capital return and signaling confidence; CEO expects “continued improvement in coming quarters”

What Went Well and What Went Wrong

Record net interest income ($52.7M) and net interest margin expansion to 4.15%, reflecting loan growth and yield improvement
Credit metrics strengthened: NPLs down to $9.8M (0.25% of loans) and net charge-offs reduced to $1.7M YoY
Sustained loan growth (7th consecutive quarter), total loans at $3.90B (+21.6% YoY), supported by SimplyBank acquisition and organic growth; CEO: “We expect continued improvement in coming quarters.”

Noninterest expense rose to $38.3M (+$5.6M YoY) amid higher salaries, equipment and “other” expenses, partially offsetting revenue gains
Revenue missed S&P Global consensus despite strong NII, as noninterest income was ~flat YoY and deposit costs remained elevated* *
Effective tax rate increased to 18.58% vs 16.29% YoY, a modest headwind to net income leverage

Metric	Q2 2024	Q1 2025	Q2 2025
Net Income ($USD Millions)	$11.369	$18.406	$18.586
Diluted EPS ($USD)	$0.96	$1.55	$1.57
Net Interest Income ($USD Millions)	$39.294	$51.975	$52.671
Non-interest Income ($USD Millions)	$9.905	$10.511	$10.381
Provision for Credit Losses ($USD Millions)	$2.966	$1.950	$1.950
Net Interest Margin (%)	3.57%	4.11%	4.15%
Efficiency Ratio (%)	64.56%	57.54%	59.37%
ROAA (%)	0.94%	1.34%	1.34%
ROAE (%)	8.78%	13.04%	12.90%

KPIs and Balance Metrics

KPI	Q2 2024	Q1 2025	Q2 2025
Total Loans ($USD Millions)	$3,204.009	$3,854.020	$3,896.563
Total Deposits ($USD Millions)	$4,132.327	$4,640.003	$4,662.889
Average Loans ($USD Millions)	$3,197.695	$3,841.752	$3,877.246
NPLs ($USD Millions)	$15.9	$10.2	$9.8
NPLs / Loans (%)	0.50%	0.26%	0.25%
Net Charge-offs ($USD Millions)	$4.677	$1.847	$1.698
ACL ($USD Millions)	$38.334	$46.835	$47.087
ACL / Loans (%)	1.20%	1.22%	1.21%
ACL / NPLs (%)	240.85%	460.57%	480.72%
TCE / TA (%)	9.14%	8.32%	8.58%

Estimates vs Actuals (S&P Global)

Metric	Consensus	Actual	Surprise
EPS ($USD)	$1.40*	$1.57*	+$0.17*
Revenue ($USD)	$63.3M*	$61.1M*	-$2.2M*

Values retrieved from S&P Global.*

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q2 2025	$0.51 (declared April 15 payment)	$0.51 (declared June 18; paid July 15)	Maintained
Net Interest Margin	FY25	Directional: “continued improvement”	Directional: “net margin expand to 4.15%… expect continued improvement”	Raised qualitatively
Formal Financial Guidance (Revenue, OpEx, Taxes)	Q2 2025	None provided	None provided	N/A

No earnings call transcript for Q2 2025 was available; Q&A themes are therefore not accessible this quarter.

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Net Interest Margin	Expanded to 3.94%; expected continued improvement	Continued expansion to 4.11%	4.15% and “expect continued improvement”	Improving
Loan Growth	Strong loan growth; SimplyBank added ~$467M	6th consecutive quarter; total loans $3.85B	7th consecutive quarter; total loans $3.90B	Sustained
Deposit Stability	Avg deposits +17% YoY; stable QoQ	Avg deposits $4.65B; acquisition-driven	Avg deposits $4.65B; stable QoQ	Stable
Credit Quality	NPLs down; resolution of 4Q23 downgrade	NPLs 0.26%; ACL 1.22%	NPLs 0.25%; ACL 1.21%	Improving
Costs/Efficiency	Efficiency 62.98%	Efficiency 57.54%	Efficiency 59.37%	Mixed (still strong)
Capital & Dividends	Dividend raised to $0.51; TCE 7.86%	Dividend $0.51; TCE 8.32%	Dividend $0.51; TCE 8.58%	Steady/Improving TCE

CEO Norman D. Lowery: “We are pleased with our second quarter results, as we have experienced our 7th consecutive quarter of loan growth. We also had another record quarter of net interest income and saw our net margin expand to 4.15%. We expect continued improvement in coming quarters.”
Q1 context: “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.”

No Q2 2025 earnings call transcript was found; therefore, Q&A themes and guidance clarifications are unavailable this quarter.

EPS beat: $1.57 actual vs $1.40 consensus*, driven by margin expansion and continued loan growth supporting NII* *
Revenue miss: $61.1M actual vs $63.3M consensus*, with modest noninterest income and stable deposit costs likely constraining upside* *
Target price consensus: ~$62, with 2 contributing estimates (contextual reference)*

Values retrieved from S&P Global.*

Core profitability is strengthening: record NII and NIM at 4.15% underpin EPS outperformance vs consensus, with ROAA at 1.34% and efficiency at 59.37% .
Credit is a tailwind: NPLs and net charge-offs improved materially YoY, supporting lower provision ($2.0M) and better loss coverage (ACL/NPL ~481%) .
Growth durability: 7th consecutive quarter of loan growth and stable deposit base suggest sustained NII momentum into 2H25 .
Expense vigilance: rising noninterest expense (salaries, equipment, other) is a watch item; maintaining efficiency near ~59–60% remains key .
Capital and returns: dividend maintained at $0.51 with improving tangible common equity to tangible asset ratio to 8.58%, indicating capacity to support growth and shareholder returns .
Near-term trading: EPS beat vs consensus and stronger NIM are likely positive catalysts; revenue miss could temper reactions, but margin trajectory and credit strength mitigate risk* *
Medium-term thesis: Integration benefits from SimplyBank plus organic commercial growth, margin tailwinds, and credit discipline set up continued profitability improvements, contingent on deposit costs and macro rate trends .