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FIRST FINANCIAL CORP /IN/ (THFF)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered a clean beat with EPS $1.37, up 29% YoY and 85% QoQ, driven by record net interest income and continued net interest margin expansion to 3.94% .
  • Total revenue of $61.82M beat consensus ($57.9M) and EPS beat ($1.37 vs $1.29), supported by stronger NIM and loan growth post-SimplyBank acquisition; NIM beat by ~10 bps vs Street (3.9% vs 3.8%) .
  • Credit metrics improved: provision fell to $2.0M (vs $9.4M in Q3), net charge-offs declined to $1.4M, and NPL ratio improved to 0.35% (vs 0.38% in Q3; 0.78% YoY) .
  • Efficiency ratio improved to 62.98% vs 64.43% in Q3; non-interest expense increased YoY on acquisition-related operating scale but was well managed QoQ .
  • Management reiterated expected further NIM improvement and highlighted “record net interest income” and “another sound quarter of loan growth,” a constructive tone likely to support estimate revisions and sentiment .

What Went Well and What Went Wrong

What Went Well

  • Record net interest income ($49.6M) and margin expansion to 3.94%, with management guiding for continued improvement: “record net interest income… net interest margin expanded” .
  • Strong loan growth with total loans +21% YoY to $3.84B; average loans +21% YoY, aided by SimplyBank and organic growth in CRE, construction, and auto .
  • Asset quality improved: NPL ratio 0.35% (vs 0.78% YoY), net charge-offs down to $1.4M, allowance coverage of NPLs at 351% .

What Went Wrong

  • Non-interest expense rose to $39.8M vs $34.2M YoY, reflecting acquisition-related operating increases; operating leverage improved QoQ but remains a watch item YoY .
  • Tangible common equity to tangible assets dipped to 7.86% (vs 9.15% YoY), reflecting balance sheet growth and acquisition accounting, modestly constraining capital flexibility .
  • Full-year net income ($47.3M) down vs 2023 ($60.7M), with higher credit provisioning ($16.2M vs $7.3M) and integration costs weighing on 2024 comparability .

Financial Results

Quarterly Comparison (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$49.20 $58.39 $61.82
Diluted EPS ($)$0.96 $0.74 $1.37
Net Interest Income ($MM)$39.29 $47.17 $49.60
Non-interest Income ($MM)$9.91 $11.22 $12.21
Net Interest Margin (%)3.57% 3.78% 3.94%
Efficiency Ratio (%)64.56% 64.43% 62.98%
Net Income ($MM)$11.37 $8.74 $16.24
Provision for Credit Losses ($MM)$2.97 $9.40 $2.00

Year-over-Year Snapshot (Q4 2024 vs Q4 2023)

MetricQ4 2023Q4 2024
Diluted EPS ($)$1.06 $1.37
Net Income ($MM)$12.42 $16.24
Net Interest Margin (%)3.63% 3.94%
Efficiency Ratio (%)65.62% 62.98%
Net Charge-offs ($MM)$1.76 $1.44
NPLs / Loans (%)0.78% 0.35%

Loans by Type (End of Period; $USD Millions)

CategoryQ2 2024Q3 2024Q4 2024
Commercial$1,782.6 $2,112.7 $2,196.4
Residential$748.0 $924.3 $967.4
Consumer$666.1 $671.4 $668.1
Total Loans (gross)$3,196.8 $3,708.4 $3,831.8

KPIs

KPIQ2 2024Q3 2024Q4 2024
Total Deposits ($MM)$4,132.3 $4,717.5 $4,718.9
ACL ($MM)$38.33 $46.17 $46.73
NPLs / Loans (%)0.50% 0.38% 0.35%
Net Charge-offs ($MM)$4.68 $4.57 $1.44
ROAA (%)0.94% 0.64% 1.18%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest MarginNear-term“We also saw our net interest margin expand… We expect continued improvement in coming quarters” (Q2 commentary) “Net interest margin expanded, and we expect continued improvement in coming quarters” (Q4 commentary) Maintained
Loan GrowthNear-term“Another quarter of loan growth” (Q2 commentary) “Another sound quarter of loan growth” (Q4 commentary) Maintained
DividendQuarterly$0.45 declared for October payment (Q3) $0.51 declared, paid Jan 15, 2025 Raised

Note: No formal quantitative guidance ranges provided; the company uses directional commentary (NIM improvement, loan growth) .

Earnings Call Themes & Trends

(Transcript not available; themes derived from management releases.)

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Net Interest MarginQ2: Margin expansion as cost of funds pressure moderated; expect improvement . Q3: NIM expanded; expect continued improvement .Record net interest income; NIM 3.94%; expect continued improvement .Improving
Loan GrowthQ2: Loan growth in CRE, construction, auto . Q3: Strong growth aided by SimplyBank acquisition .Loans +21% YoY; organic growth in CRE, construction, auto .Strong/sustained
Acquisition IntegrationQ3: Closed SimplyBank; purchase accounting impacts .Year-end balances reflect acquired loans/deposits; ACL established for PCD .Integration progressing
Credit QualityQ2: Elevated charge-offs on identified credit; NPLs modest . Q3: Provision elevated (acquisition + specific credit) .Provision normalized; NPL ratio improved; net charge-offs down .Improving
Capital & TCEQ2/Q3: TCE/TA ~9.1–8.3% .TCE/TA 7.86% amid balance sheet growth .Slightly lower

Management Commentary

  • “We experienced another sound quarter of loan growth and record net interest income. During the quarter our net interest margin expanded, and we expect continued improvement in coming quarters.” — Norman D. Lowery, President & CEO .
  • “During the quarter, we closed the acquisition of SimplyBank… We also experienced another sound quarter of loan and net interest income growth. During the quarter our net interest margin expanded, and we expect continued improvement in coming quarters.” — Norman D. Lowery (Q3 release) .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available in our document sources; therefore, specific analyst Q&A themes and clarifications could not be reviewed. We searched company filings and document catalogs and found no transcript for this period [ListDocuments searches returned 0 for earnings-call-transcript in Q4 2024 and Q1 2025 windows].

Estimates Context

  • Street consensus comparisons (non-SPGI reference): Revenue $57.9M consensus vs actual $61.82M (+6.76% surprise); EPS $1.29 consensus vs actual $1.37 (+6.20% surprise); NIM 3.8% consensus vs actual ~3.9% .
  • S&P Global consensus data was unavailable due to API limit constraints at the time of retrieval; where possible, use public consensus proxies (e.g., Zacks/Nasdaq) until SPGI data access is restored.

Key Takeaways for Investors

  • Momentum inflection: Sequential EPS acceleration (QoQ +85%) and margin expansion underscore improving core banking profitability; management’s tone points to continued NIM support .
  • Balance sheet scale post-acquisition: Loans and deposits materially higher; integration and purchase accounting impacts are largely digested, with normalization in provision in Q4 .
  • Credit normalization tailwind: Provision and net charge-offs declined QoQ; NPL ratio improved to 0.35%, freeing earnings power as credit costs abate .
  • Operating efficiency improved: Efficiency ratio down to 62.98%; watch non-interest expense trajectory given larger footprint, but QoQ trends favorable .
  • Capital watchpoint: TCE/TA lower at 7.86% amid growth; adequate allowance coverage and strong NIM mitigate risk, but capital build via retained earnings is a medium-term focus .
  • Dividend signaling: Quarterly dividend increased to $0.51 (paid Jan 15, 2025), reinforcing confidence in cash generation post-acquisition .
  • Near-term trading: Positive revision risk as Street adjusts to NIM trajectory and lower credit costs; lack of formal guidance keeps focus on sequential KPIs and loan/deposit trends in subsequent quarters .