First Financial Corporation Reports Increased Net Income of $18.4 Million in Q1 2025

First Financial Corporation reported a significant increase in its financial performance for the first quarter of 2025, with net income rising to $18.4 million, compared to $10.9 million in the same period last year. This translates to a basic earnings per share of $1.55, up from $0.93 in the prior year. The company's return on average assets and return on average equity also improved, reaching 1.34% and 13.04%, respectively, compared to 0.91% and 8.36% in the first quarter of 2024. The increase in net interest income was a key driver, which rose to $52.0 million from $38.9 million, reflecting a net interest margin of 4.11%, up from 3.53% a year earlier.

In terms of operational metrics, First Financial's total assets decreased slightly to $5.55 billion as of March 31, 2025, down from $5.56 billion at the end of 2024. The company’s loan portfolio saw a modest increase, with net loans rising to $3.81 billion from $3.79 billion. However, total deposits decreased by 1.7% to $4.64 billion. The corporation's allowance for credit losses remained stable at $46.8 million, reflecting a provision for credit losses of $2.0 million for the quarter, compared to $1.8 million in the same period last year.

Strategically, First Financial completed the acquisition of SimplyBank on July 1, 2024, which has been integrated into its operations. This acquisition is expected to enhance the corporation's market presence and operational efficiencies. The company continues to focus on maintaining strong liquidity, with cash and available-for-sale securities representing approximately 22.9% of total assets. The corporation also has significant borrowing capacity available through the Federal Home Loan Bank and other sources, ensuring it can meet both short-term and long-term liquidity needs.

The corporation's asset quality remains solid, with a non-performing asset ratio of 0.25% of total assets as of March 31, 2025, and net charge-offs of 0.19% to average loans and leases. Non-performing loans decreased to $10.2 million from $13.3 million at the end of 2024, indicating effective management of credit risk. Looking ahead, First Financial Corporation is optimistic about its growth prospects, although it acknowledges potential risks related to economic conditions and interest rate fluctuations. The management remains committed to executing its business plans while navigating the evolving financial landscape.