First Financial Corporation said first-quarter net income rose to $19.8 million from $18.4 million a year earlier, while diluted earnings per share increased to $1.67 from $1.55.
Net interest income climbed to a quarterly record $56.9 million from $52.0 million, up $5.0 million, or 9.5%. The net interest margin widened to 4.23% from 4.11%.
The company’s loan book expanded sharply. Average total loans reached $4.16 billion, up $319 million, or 8.29%, from $3.84 billion a year ago and up $186 million, or 4.69%, from the fourth quarter. Loans outstanding at quarter-end increased to $4.42 billion from $3.85 billion a year earlier and from $4.06 billion at Dec. 31, 2025. The latest quarter included $292 million of acquired loans from CedarStone Financial and $77 million of organic growth.
Deposits were $4.84 billion at March 31, 2026, compared with $4.64 billion a year earlier and $4.55 billion at the end of 2025. Average deposits were $4.66 billion, little changed from $4.65 billion a year ago and up from $4.64 billion in the prior quarter.
The acquisition also lifted assets above a milestone. Total assets reached $6.13 billion at quarter-end, up from $5.55 billion a year earlier and $5.76 billion at Dec. 31, 2025.
Shareholders’ equity increased to $655.3 million from $571.9 million a year earlier. Book value per share rose to $55.10 from $48.26, while tangible book value per share increased to $45.13 from $38.13.
Credit metrics were mixed. Nonperforming loans rose to $28.5 million from $10.2 million a year earlier, and the ratio of nonperforming loans to total loans increased to 0.64% from 0.26%. On a linked-quarter basis, nonperforming loans were essentially flat at $28.6 million, down slightly from $28.7 million.
The provision for credit losses increased to $2.6 million from $2.0 million a year earlier. Net charge-offs declined to $1.5 million from $1.8 million.
Non-interest income rose to $11.2 million from $10.5 million, while non-interest expense increased to $40.9 million from $36.8 million. The efficiency ratio moved up to 58.72% from 57.54%.
Income tax expense fell to $4.9 million from $5.4 million, and the effective tax rate dropped to 19.89% from 22.59%.
First Financial also reported that its bargain purchase gain from CedarStone was $716,000 in the quarter. Today the company's shares have moved 0.17% to a price of $66.32. If you want to know more, read the company's complete 8-K report here.
