First Financial Corporation has recently released its 10-K report, providing a detailed look at its financial performance and operations. The company, headquartered in Terre Haute, Indiana, offers various financial services, including non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits, commercial loans, residential real estate and construction loans, home equity loans, lease financing, trust account, depositor, and insurance services. First Financial Corporation was founded in 1834.
The 10-K report includes a comprehensive discussion of critical accounting policies and estimates. Management’s Discussion and Analysis of Financial Condition and Results of Operations is based on the company’s consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America. The report highlights critical accounting estimates related to the allowance for credit losses, securities valuation, and goodwill.
The company reported a net income of $47.3 million for 2024, down from $60.7 million in 2023. The decrease in net income was primarily attributed to an increased provision for credit losses associated with the acquisition of SimplyBank and non-interest expenses. The return on average assets at December 31, 2024, decreased to 0.92% from 1.26% at December 31, 2023.
First Financial Corporation’s principal source of earnings is net interest income, which increased to $175.0 million in 2024 from $167.3 million in 2023. The net interest margin decreased from 3.78% in 2023 to 3.71% in 2024, with earning asset yields increasing by 43 basis points and the rate on interest-bearing liabilities increasing by 54 basis points.
The provision for credit losses charged to expense is based on the company's current expected loss and a detailed analysis estimating an appropriate and adequate allowance for credit losses. The allowance for credit losses and allowance for unfunded commitments were $46.7 million and $2.1 million, respectively, at December 31, 2024, compared to $39.8 million and $2.0 million, respectively, at December 31, 2023. The company recorded $5.5 million in Day 2 provision on non-PCD loans acquired from SimplyBank.
The 10-K report provides a detailed breakdown of the company's average balances and interest rates for 2024 compared to 2023, offering a comprehensive view of its financial performance.
As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $49.69. For the full picture, make sure to review First Financial's 10-K report.
