THFF · First Financial Corporation

First Financial Corporation reported strong first quarter results for 2026, with net income rising to $19.8 million from $18.4 million in the same period last year, driven by record net interest income and the acquisition of CedarStone Financial. Diluted EPS increased to $1.67 from $1.55. Net interest income reached a record $56.9 million, up 9.5% year-over-year, as the net interest margin expanded to 4.23% from 4.11%, benefiting from higher loan yields and lower deposit costs. The provision for credit losses increased to $2.6 million from $2.0 million, reflecting loan growth and a slight uptick in nonperforming loans. Non-interest income grew to $11.2 million from $10.5 million, aided by a $716 thousand bargain purchase gain from the CedarStone acquisition. Non-interest expense rose to $40.9 million from $36.8 million, partly due to acquisition-related costs, resulting in an efficiency ratio of 58.72% versus 57.54% a year ago. Pre-tax, pre-provision income, a non-GAAP measure, increased to $27.3 million from $25.7 million, indicating solid underlying profitability. The acquisition of CedarStone Financial, completed on March 1, 2026, added $292 million in loans and $313 million in deposits, contributing to total assets surpassing $6 billion for the first time. Management noted the tenth consecutive quarter of loan growth and stable credit quality, with the allowance for credit losses at 1.18% of total loans. Nonperforming loans increased to $28.5 million (0.64% of loans) from $10.2 million (0.26%) a year ago, but the credit loss reserve coverage remained adequate at 183.89% of nonperforming loans. The company paid a $0.56 per share quarterly dividend and has 518,860 shares remaining under its buyback authorization. Overall, the results reflect successful integration of the acquisition and continued organic growth, with a strong net interest margin and stable asset quality.