Did First Financial beat earnings in Q4 2025?

Yes. First Financial reported EPS of $1.81, beating consensus of $1.59 by 10.3%. Revenue of $67.2M also beat expectations of $65.5M by 2.5%. This marks the 4th consecutive quarterly beat.

What did First Financial say about loan growth?

CEO Norman Lowery highlighted that total loans surpassed $4 billion for the first time, with 9 consecutive quarters of loan growth driven by Commercial Construction, Commercial Real Estate, and Consumer Auto loans.

Did First Financial raise guidance?

Management did not provide explicit forward guidance but expressed confidence heading into 2026, noting strong capital position and good momentum. The company increased its quarterly dividend from $0.51 to $0.56 per share.

FIRST FINANCIAL CORP /IN/ (THFF)·Q4 2025 Earnings Summary

First Financial Posts Record Year as Loans Cross $4B, EPS Beats by 10%

February 3, 2026 · by Fintool AI Agent

Banner

First Financial Corporation (NASDAQ: THFF) delivered a strong finish to 2025, reporting Q4 EPS of $1.81 that beat consensus by 10.3% and capped off a record year for the Indiana-based regional bank. Full-year net income surged 67% to $79.2M, with loans crossing the $4 billion milestone for the first time in company history.

Did First Financial Beat Earnings?

Yes — decisively. First Financial beat on both EPS and revenue for the fourth consecutive quarter:

Metric	Q4 2025 Actual	Consensus	Surprise
EPS	$1.81	$1.59	+10.3%
Revenue	$67.2M	$65.5M	+2.5%
Net Income	$21.5M	—	+33% YoY

The beat was driven by record net interest income of $60.6M (+22% YoY), which included a $4.6M interest recovery on a previously impaired credit acquired in a 2019 merger.

Beat/Miss History — 4 Consecutive Beats

Period	EPS Actual	EPS Est.	Surprise	Revenue Actual	Rev Est.	Surprise
Q4 2025	$1.81	$1.59	+10.3%	$67.2M	$65.5M	+2.5%
Q3 2025	$1.75	$1.59	+10.2%	$65.8M	$63.3M	+1.9%
Q2 2025	$1.57	$1.40	+11.9%	$64.5M	$62.1M	+2.9%
Q1 2025	$1.55	$1.30	+19.5%	$63.9M	$60.4M	+2.4%

Values retrieved from S&P Global

Ask Fintool AI Agent

How Did the Stock React?

THFF shares rose +0.7% to $66.38 in early trading, approaching their 52-week high of $66.95. The stock has rallied 57% from its 52-week low of $42.05, significantly outperforming the KBW Regional Banking Index.

Key valuation metrics:

Market Cap: $787M
Price/Book: 1.21x (book value $54.78)
Price/Tangible Book: 1.47x (TBV $45.15)
50-Day Avg: $61.81
200-Day Avg: $56.10

What Changed From Last Quarter?

Positives

Loans crossed $4B for the first time — Total loans reached $4.06B, up 5.7% YoY and 2.2% sequentially. Growth was driven by Commercial Construction & Development, Commercial Real Estate, and Consumer Auto.
Net interest margin expanded — NIM jumped to 4.66% vs. 3.94% in Q4 2024 (+72 bps YoY), benefiting from higher loan yields and lower deposit costs.
Credit quality improved — Nonperforming loans fell to 0.36% of total loans vs. 0.49% last quarter.
Capital strength — Tier 1 leverage ratio improved to 11.25% from 10.38% a year ago. Tangible common equity ratio reached 9.51% vs. 7.86% YoY.
Dividend increased — Quarterly dividend raised from $0.51 to $0.56 per share (+9.8%).

Watch Items

Deposits declined — Total deposits fell 3.6% YoY to $4.55B as the bank managed deposit costs lower.
One-time items — Q4 included $4.6M in investment portfolio losses (securities sold to reinvest at higher yields) and $2.4M PTO accrual adjustment.
Acquisition expenses — CedarStone Financial acquisition (announced Nov 2025) added $1.4M in deal-related costs.

Full Year 2025 — Record Performance

Metric	FY 2025	FY 2024	Change
Net Income	$79.2M	$47.3M	+67%
Diluted EPS	$6.68	$4.00	+67%
Net Interest Income	$219.9M	$175.0M	+26%
Return on Assets	1.42%	0.92%	+50 bps
Return on Equity	13.30%	8.82%	+448 bps
Efficiency Ratio	57.92%	64.67%	-675 bps

Data from 8-K filing

Ask Fintool AI Agent

What Did Management Say?

"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."

— Norman D. Lowery, President and CEO

CedarStone Acquisition Update

First Financial announced the acquisition of CedarStone Financial on November 6, 2025, marking its expansion into new markets. The company incurred $1.4M in deal-related expenses in Q4. No update was provided on expected closing timing or synergy targets.

Balance Sheet Snapshot

Metric	Q4 2025	Q4 2024	Change
Total Assets	$5.76B	$5.56B	+3.5%
Total Loans	$4.06B	$3.84B	+5.7%
Total Deposits	$4.55B	$4.72B	-3.6%
Shareholders' Equity	$650.9M	$549.0M	+18.6%
Book Value/Share	$54.78	$46.36	+18.2%
Tangible Book Value/Share	$45.15	$36.10	+25.1%

Data from 8-K filing

Credit Quality

Metric	Q4 2025	Q3 2025	Q4 2024
NPLs / Total Loans	0.36%	0.49%	0.35%
Allowance / Loans	1.18%	1.20%	1.22%
Net Charge-offs / Avg Loans (Ann.)	0.18%	0.17%	0.15%
Provision for Credit Losses	$2.4M	$2.0M	$2.0M

Data from 8-K filing

Credit quality remains solid. Nonperforming loans declined to $14.8M from $19.3M sequentially as the bank resolved problem credits. The allowance coverage ratio of 325% of NPLs provides a healthy cushion.

Forward Catalysts

CedarStone integration — Deal closure and integration progress in 2026
Loan growth momentum — 9 consecutive quarters of growth with strong pipeline
NIM sustainability — Management's ability to maintain elevated margins as rates stabilize
Capital deployment — 518,860 shares remain authorized for repurchase

Key Risks

Deposit competition — Continued pressure on funding costs if rates remain elevated
CRE concentration — Commercial real estate exposure amid macro uncertainty
Integration execution — CedarStone deal execution risk
Rate sensitivity — NIM compression if Fed cuts rates aggressively

Ask Fintool AI Agent

About First Financial Corporation

First Financial Corporation (NASDAQ: THFF) is the holding company for First Financial Bank N.A., the fifth oldest national bank in the United States. The bank operates 79 banking centers across Illinois, Indiana, Kentucky, Tennessee, and Georgia.

Analysis generated by Fintool AI Agent on February 3, 2026. Data sourced from company 8-K filing and S&P Global estimates.

Related: