First Financial Corporation (THFF) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

First Financial Corporation (THFF) Financial Services Profile

First Financial Corporation, established in 1834, operates as a regional bank offering diverse financial services, including commercial and retail banking, across a four-state area. With a market capitalization of $925M and a dividend yield of 3.15%, THFF maintains a conservative beta of 0.40 within the regional banking sector.

What Is the Investment Thesis for THFF?

First Financial Corporation presents a stable investment profile within the regional banking sector, supported by a $925M market capitalization and a consistent dividend yield of 3.15%. The company's P/E ratio of 10.90 indicates a potentially undervalued position relative to earnings. A conservative beta of 0.40 suggests lower volatility compared to the broader market. Growth catalysts include expansion within its existing four-state region and potential acquisitions of smaller community banks. However, investors should monitor the impact of interest rate fluctuations and regional economic conditions on First Financial's loan portfolio and profitability. Maintaining a profit margin of 25.1% will be critical for sustaining shareholder value.

Based on FMP financials and quantitative analysis

THFF Key Highlights

Market capitalization of $925M indicates a solid regional presence.

• P/E ratio of 10.90 suggests a potentially undervalued stock relative to earnings.
• Profit margin of 25.1% reflects efficient operations and profitability.
• Gross margin of 77.9% demonstrates effective cost management in service delivery.
• Dividend yield of 3.15% provides a consistent income stream for investors.

Who Are THFF's Competitors?

THFF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are THFF's Key Strengths?

Long-standing history and established brand in the region.

• Diversified portfolio of financial services.
• Strong local market knowledge and customer relationships.
• Conservative lending practices and risk management.

What Are THFF's Weaknesses?

Limited geographic reach compared to national banks.

• Dependence on regional economic conditions.
• Potential vulnerability to interest rate fluctuations.
• Need for continued investment in digital banking technology.

What Could Drive THFF Stock Higher?

Expansion of digital banking services to attract and retain customers.

• Potential acquisitions of smaller community banks to expand market share.
• Focus on commercial lending to drive revenue growth.
• Development of wealth management services to diversify revenue streams.

What Are the Key Risks for THFF?

Financial-distress signal — its Altman Z-Score of 0.57 sits in the distress zone (elevated bankruptcy risk).

• Increased competition from larger national banks and fintech companies.
• Regulatory changes and compliance costs impacting profitability.
• Economic downturns in the region affecting loan performance.
• Cybersecurity risks and data breaches compromising customer data.
• Interest rate fluctuations impacting net interest margin.

What Are the Growth Opportunities for THFF?

• Expansion within Existing Markets: First Financial can deepen its market penetration within its existing footprint of west-central Indiana, east-central Illinois, western Kentucky, and middle and western Tennessee. By opening new branches in underserved areas and increasing marketing efforts, the company can attract new customers and grow its deposit base. This targeted expansion strategy can leverage the company's established brand and local market knowledge to drive organic growth. The timeline for this growth is ongoing, with continuous evaluation of market opportunities.
• Strategic Acquisitions of Smaller Banks: The regional banking sector is ripe for consolidation, presenting First Financial with opportunities to acquire smaller community banks. These acquisitions can expand the company's geographic reach, increase its asset base, and generate cost synergies. Identifying and integrating suitable acquisition targets can be a key growth driver. The timeline for acquisitions is event-driven, depending on market conditions and available targets.
• Enhancement of Digital Banking Platform: Investing in and enhancing its digital banking platform can attract and retain tech-savvy customers. Offering mobile banking, online account opening, and digital payment solutions can improve customer convenience and reduce operational costs. This digital transformation is essential for competing with larger banks and fintech companies. The timeline for digital enhancement is ongoing, with continuous updates and improvements to the platform.
• Increased Focus on Commercial Lending: Expanding its commercial lending portfolio can drive revenue growth and improve profitability. By targeting small and medium-sized businesses in its operating region, First Financial can capitalize on local economic development and build long-term relationships. Offering tailored financing solutions and personalized service can differentiate the company from larger lenders. The timeline for commercial lending growth is ongoing, with proactive outreach to local businesses.
• Development of Wealth Management Services: Expanding wealth management services, including financial planning, investment management, and trust services, can generate fee income and diversify revenue streams. Targeting high-net-worth individuals and families in its operating region can create a stable and recurring source of revenue. Offering personalized advice and tailored investment solutions can attract and retain clients. The timeline for wealth management development is ongoing, with gradual expansion of service offerings.

What Are THFF's Competitive Advantages?

• Established regional presence with a history dating back to 1834.
• Strong local market knowledge and customer relationships.
• Diversified portfolio of financial services.
• Conservative lending practices and risk management.
• Extensive branch network across four states.

What Does THFF Do?

Founded in 1834 and headquartered in Terre Haute, Indiana, First Financial Corporation has evolved into a prominent regional bank serving west-central Indiana, east-central Illinois, western Kentucky, and middle and western Tennessee. The company operates 78 branches, providing a comprehensive suite of financial services to individuals and businesses. Its offerings include a variety of deposit accounts, such as non-interest-bearing demand, interest-bearing demand, savings, and time deposits. First Financial also provides commercial loans tailored to business expansion and asset purchases, residential real estate and construction loans, home equity loans and lines of credit, and secured and unsecured personal loans. Beyond lending and deposit services, First Financial offers lease financing, trust account services, and insurance products, positioning itself as a full-service financial institution within its operating footprint. The company's long-standing history and diversified service portfolio contribute to its established presence in the regional banking landscape.

What Products and Services Does THFF Offer?

• Offers non-interest-bearing and interest-bearing demand deposit accounts.
• Provides savings and time deposit accounts.
• Originates commercial loans for business expansion and asset purchases.
• Offers residential real estate and construction loans.
• Provides home equity loans and lines of credit.
• Offers secured and unsecured personal loans.
• Provides lease financing options.
• Offers trust account services and insurance products.

How Does THFF Make Money?

• Generates revenue from interest earned on loans.
• Collects fees for services such as trust accounts and insurance.
• Profits from the spread between interest earned on assets and interest paid on deposits.
• Expands its customer base through branch operations and digital banking.

What Industry Does THFF Operate In?

First Financial Corporation operates within the regional banking sector, which is characterized by increasing consolidation and competition from larger national banks and fintech companies. The industry is influenced by interest rate environments, regulatory changes, and regional economic conditions. First Financial's presence in the Midwest and Southeast positions it to capitalize on local economic growth, but it also faces competition from institutions like Bank of Hawaii Corporation (BOH) and other regional players. The trend towards digital banking and mobile payment solutions is reshaping customer expectations, requiring regional banks to invest in technology to remain competitive.

Who Are THFF's Key Customers?

• Small and medium-sized businesses seeking commercial loans.
• Individuals seeking residential real estate loans.
• Consumers needing personal loans and lines of credit.
• Customers looking for deposit accounts and savings products.
• Individuals and families seeking wealth management services.

Company Profile

First Financial Corporation operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Terre Haute, US. The company is led by CEO Norman D. Lowery. THFF has traded publicly since 1992.

Return on equity for First Financial Corporation stands at 13.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. THFF trades at a trailing price-to-earnings ratio of 10.90, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 10.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.17 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 9.0%, the inverse of the P/E and a quick read on earnings relative to price.

THFF Valuation & Market Position

With a $925M market cap, First Financial Corporation sits in the small-cap segment of the market. Analyst price targets span from $90.00 to $90.00, with a consensus of $90.00. At the current price of $77.80, that implies approximately 16% upside potential. Relative to its peer group, THFF's quantitative score of 80/100 is below the peer average of 91/100.

Quarterly Financial Performance: First Financial Corporation

Revenue for First Financial Corporation came in at $94.9M during Q2 FY2026, a 21.7% improvement versus the preceding quarter. The company recorded net income of $22.7M, with diluted EPS of $1.91. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Financial Services company. Across the four most recent quarters, THFF averaged $1.79 in diluted EPS.

First Financial Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.57 places it in the distress zone, a signal of elevated financial risk.

First Financial Corporation has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 5.2% above estimates on average.

The most recent 12 insider filings for First Financial Corporation break down as 5 sales and 7 purchases. On net that is roughly 11K shares acquired (about $348K) — insiders putting money in tends to read as conviction.

THFF Financials

THFF Latest News

THFF Analyst Consensus

THFF MoonshotScore

Common Questions About THFF (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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