First Financial Corporation Reports Increased Net Income and Asset Growth in Q2 2026

First Financial Corporation reported a significant increase in its financial performance for the second quarter of 2026, with net income rising to $22.7 million, up from $18.6 million in the same period last year. Basic earnings per share also increased to $1.91, compared to $1.57 in the prior year. For the first half of 2026, net income reached $42.5 million, a notable increase from $37.0 million in the first half of 2025. The return on average assets and return on average equity improved to 1.48% and 13.71%, respectively, for the second quarter, reflecting the company's effective management strategies and operational efficiencies.

The corporation's total assets grew to $6.18 billion as of June 30, 2026, compared to $5.76 billion at the end of 2025. This increase was driven by a rise in loans, which reached $4.46 billion, up from $4.05 billion at the end of the previous fiscal year. The growth in loans was primarily attributed to a substantial increase in residential loans, which rose to $1.32 billion from $987 million. Additionally, the corporation's deposits increased by 6.2% to $4.83 billion, indicating strong customer engagement and retention.

Strategically, First Financial Corporation completed the acquisition of CedarStone Financial, Inc. on March 1, 2026, which contributed to the growth in assets and loans. The acquisition added approximately $292 million in loans and $313 million in deposits to the corporation's balance sheet. The integration of CedarStone's operations is expected to enhance the corporation's market presence and operational capabilities. The corporation also reported a bargain purchase gain of $33,000 from this acquisition, reflecting effective negotiation and valuation strategies.

Operationally, First Financial Corporation maintained a solid asset quality, with a non-performing asset ratio of 0.50% of total assets as of June 30, 2026. The allowance for credit losses increased to $50.9 million, up from $48.0 million at the end of 2025, indicating a proactive approach to managing credit risk. The corporation's net charge-offs for the second quarter were $2.7 million, compared to $1.7 million in the same period last year, reflecting ongoing monitoring and management of loan performance.

Looking ahead, First Financial Corporation remains optimistic about its growth trajectory, supported by strong liquidity and capital positions. The corporation's liquidity is bolstered by significant available resources, including $199.5 million in unused borrowing capacity with the Federal Home Loan Bank. Management anticipates continued growth in both loans and deposits, driven by strategic initiatives and market opportunities, while remaining vigilant to potential economic challenges and interest rate fluctuations.