Sign in
FF

FIRST FINANCIAL CORP /IN/ (THFF)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered strong profitability: net income of $20.8M and diluted EPS of $1.75, with ROA at 1.48% and efficiency ratio at 56.63% .
  • EPS materially beat Wall Street consensus (EPS consensus $1.59*, actual $1.75; +$0.16 surprise*) while SPGI-defined revenue was modestly below consensus ($63.80M* vs $65.53M*; -$1.73M*), despite reported net interest income plus non-interest income totaling $65.75M .
  • Net interest margin expanded to 4.25% (from 4.15% in Q2) and net interest income hit another record, aided by eight straight quarters of loan growth and lower interest expense year over year .
  • Asset quality mixed: nonperforming loans rose to $19.3M (0.49% of loans) vs $9.8M (0.25%) in Q2, though net charge-offs improved year over year to $1.6M from $4.6M .

What Went Well and What Went Wrong

What Went Well

  • Record net interest income ($54.6M) and NIM expansion to 4.25% on continued loan growth and lower interest expense YoY .
  • Operating efficiency improved: efficiency ratio at 56.63% vs 64.43% YoY; pre-tax, pre-provision income of $27.7M vs $19.9M YoY .
  • Management confidence: “We achieved another record in net interest income with our net margin increasing to 4.25%. We anticipate further margin expansion due to our liability-sensitive positioning. Our capital position remains solid” — Norman D. Lowery, President & CEO .

What Went Wrong

  • Asset quality pressure: nonperforming loans increased to $19.3M (0.49% of loans) from $9.8M (0.25%) in Q2 and $14.1M (0.38%) YoY; reserve-to-NPL coverage fell from 480.7% in Q2 to 246.1% in Q3 .
  • Deposits declined QoQ and YoY: total deposits were $4.62B vs $4.66B in Q2 and $4.72B a year ago; average total deposits also fell versus prior periods .
  • SPGI revenue definition showed a small miss vs consensus, which may temper top-line narrative even as net interest income and non-interest income sum to higher “net revenue” in the release .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Net Interest Income ($USD Millions)$47.17 $52.67 $54.60
Non-interest Income ($USD Millions)$11.22 $10.38 $11.15
Net Revenue (NII + Non-interest) ($USD Millions)$58.39 $63.05 $65.75
Net Income ($USD Millions)$8.74 $18.59 $20.76
Diluted EPS ($USD)$0.74 $1.57 $1.75
Net Interest Margin (%)3.78% 4.15% 4.25%
Efficiency Ratio (%)64.43% 59.37% 56.63%
Provision for Credit Losses ($USD Millions)$9.40 $1.95 $1.95
Net Charge-offs ($USD Millions)$4.57 $1.70 $1.63

Segment and Balance Sheet

MetricQ3 2024Q2 2025Q3 2025
Total Loans Outstanding ($USD Millions)$3,715.24 $3,896.56 $3,967.40
Total Deposits ($USD Millions)$4,717.49 $4,662.89 $4,615.31
Non-interest Bearing Deposits ($USD Millions)$831.60 $859.70 $849.98
Time Deposits ($USD Millions)$791.10 $710.00 $703.00
ACL ($USD Millions)$46.17 $47.09 $47.41
ACL / Loans (%)1.24% 1.21% 1.20%
Nonperforming Loans ($USD Millions)$14.10 $9.80 $19.30
NPL / Loans (%)0.38% 0.25% 0.49%

Non-GAAP Reconciliation (Pre-tax, Pre-provision)

MetricQ3 2024Q2 2025Q3 2025
Income Before Income Taxes ($USD Millions)$10.43 $22.83 $25.75
Provision for Credit Losses ($USD Millions)$9.40 $1.95 $1.95
Provision for Unfunded Commitments ($USD Millions)$0.10 $0.10 —
Pre-tax, Pre-provision Income ($USD Millions)$19.93 $24.88 $27.70

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Cash Dividend per ShareQ3 2025$0.51 $0.51 (paid Oct 15, 2025) Maintained
Net Interest MarginQ4/ForwardNot formally guidedDirectional: “anticipate further margin expansion” Positive directional commentary

Note: No formal numerical guidance provided for revenue, margins, OpEx, OI&E, or tax rate in Q3 2025 materials. Effective tax rate commentary for the quarter: 20.18% vs 16.44% YoY .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025 / Q2 2025)Current Period (Q3 2025)Trend
Net Interest Margin trajectoryNIM 4.11% in Q1; 4.15% in Q2; “expect continued improvement” NIM 4.25%; management “anticipate further margin expansion” Improving
Loan growth6th (Q1) and 7th (Q2) consecutive quarters of loan growth 8th consecutive quarter; pipelines “robust” Positive momentum
DepositsAverage deposits rose YoY with SimplyBank acquisition (Q1/Q2) Total and average deposits declined QoQ and YoY Mixed / Soft
Asset qualityNPLs down vs 2024 earlier in year NPLs up QoQ and YoY; NPL ratio 0.49% Deteriorating
Capital & book valueBVPS and TBVPS rising across Q1/Q2 BVPS $52.50 (+9.6% YoY); TBVPS $42.75 (+13.0% YoY) Strengthening
Operating efficiencyEfficiency ratio improved in Q1/Q2 Further improvement to 56.63% Improving

Note: We could not locate a Q3 2025 earnings call transcript for THFF in our document catalog; themes above reflect consistent management commentary across Q1–Q3 press releases and tables .

Management Commentary

  • “We are satisfied with our third quarter performance, marking the eighth consecutive quarter of loan growth and maintaining robust pipelines. Additionally, we achieved another record in net interest income with our net margin increasing to 4.25%. We anticipate further margin expansion due to our liability-sensitive positioning. Our capital position remains solid, ensuring we are well equipped for the current market environment.” — Norman D. Lowery, President & CEO .
  • Year-over-year interest expense decreased $2.5M while interest income increased $4.9M, supporting NII growth .
  • Dividend policy consistent with $0.51 quarterly dividend paid in October; repurchase authorization remains available with 518,860 shares .

Q&A Highlights

We did not find an earnings call transcript for THFF Q3 2025 in our catalog or via company documents; therefore, Q&A themes are unavailable from primary sources this quarter [ListDocuments result: none for THFF transcripts].

Estimates Context

MetricQ3 2024Q2 2025Q3 2025
EPS Actual ($)$0.74 $1.57 $1.75
Primary EPS Consensus Mean ($)$0.91*$1.40*$1.59*
EPS Surprise ($)-$0.17*+$0.17*+$0.16*
Revenue Actual ($USD Millions)$48.99*$61.10*$63.80*
Revenue Consensus Mean ($USD Millions)$58.66*$63.28*$65.53*
Revenue Surprise ($USD Millions)-$9.67*-$2.18*-$1.73*

Values retrieved from S&P Global.*
Context: Company-reported net revenue (NII + non-interest income) totaled $65.75M in Q3 2025, which some third-party outlets referenced; SPGI’s “revenue” definition differs from release presentation, yielding a slight miss vs SPGI consensus .

Key Takeaways for Investors

  • EPS execution beat consensus; operating leverage from NIM expansion and efficiency gains is intact, underpinning near-term earnings resilience .
  • Watch asset quality: the jump in NPLs and lower reserve-to-NPL coverage could be a focal point for bears; near-term stock reaction may balance EPS beat versus credit trend .
  • Deposit softness and mix shifts warrant monitoring; liability-sensitive positioning should support NIM if rate path favors, but funding dynamics remain a swing factor .
  • Capital remains strong with book value growth; dividend maintained; buyback capacity exists though no repurchases in the past year .
  • Estimate models likely to lift EPS on margin trajectory but may trim SPGI-reported revenue lines unless presentation aligns; focus on NII and PPNR as core drivers .
  • Near-term: constructive on spread income and cost control; Medium-term: credit normalization path and deposit trends will drive valuation multiples.

Appendix: Additional Data Points

  • Loans outstanding: $3.97B (+6.8% YoY; +1.82% QoQ); growth led by Commercial Construction & Development, CRE, and Consumer Auto .
  • ROE 13.82% in Q3 2025 vs 6.39% a year ago .
  • Effective tax rate: 20.18% in Q3 2025 vs 16.44% in Q3 2024 .
  • ACL: $47.4M (1.20% of loans) vs $46.2M (1.24%) a year ago .

Sources: THFF Q3 2025 8-K and press release with full financial tables ; Q2 2025 8-K and press release ; Q1 2025 8-K and press release . Estimates from S&P Global via GetEstimates.*