Last Updated 5/5/25
First Financial Corporation, trading under the ticker THFF, might not be a household name on Wall Street, but for those who appreciate consistency and steady income, it deserves a closer look. Headquartered in Terre Haute, Indiana, this regional bank has been quietly building a strong reputation over the decades. Its roots go back to the 1800s, and in that time, it’s grown into a solid player in the Midwest banking space, serving communities across Indiana and Illinois.
What makes THFF particularly interesting to dividend-focused investors is its ability to stay resilient through changing market conditions. It’s not a flashy business, and it doesn’t chase headlines—but it also doesn’t stumble when the pressure’s on. That’s a quality that matters, especially for investors who rely on consistent cash flow.
Recent Events
THFF has been putting up some strong numbers lately, and it hasn’t gone unnoticed. Over the past year, the stock has climbed close to 33%, a significant move considering the broader market’s more modest gains. This isn’t just a bounce off the lows—it’s supported by impressive fundamental performance.
In the most recent quarter, earnings rose by nearly 69% year-over-year, while revenue jumped 30%. That kind of growth would be noteworthy for a tech company, let alone a conservative regional bank. It tells us something important: management is executing well, interest income is climbing, and costs are under control.
With a trailing P/E of 10.97 and a forward P/E just under 9, the market still isn’t pricing in aggressive growth. That kind of multiple suggests skepticism, but for income investors, it can also signal an opportunity. Add in a remarkably low beta of 0.41, and THFF starts to look like a stable foundation in any dividend portfolio.
Key Dividend Metrics
📈 Forward Yield: 4.03%
💸 Trailing Yield: 3.79%
📆 5-Year Average Yield: 2.84%
🧮 Payout Ratio: 41.56%
💵 Annual Dividend Rate: $2.04
📊 Last Dividend Date: April 15, 2025
🪙 Ex-Dividend Date: April 1, 2025
🔁 Dividend Growth Outlook: Steady and reliable
🧱 Dividend Safety: Strong and well-supported by earnings
Dividend Overview
One of the biggest draws here is the dividend yield. A forward yield over 4% stands out in today’s environment, especially when it comes from a company with a track record of earnings stability and solid capital management. THFF isn’t chasing yield with risky strategies—it’s simply doing its job well and sharing the profits.
The current payout ratio of just over 41% means there’s plenty of breathing room. Even if earnings were to dip slightly, there’s still ample cushion to keep those dividends flowing. And considering the company’s current earnings power, there may even be room for moderate increases over time.
Another thing that stands out: the company has never had to make dramatic shifts in its dividend policy. It pays consistently, and it pays on time. The last dividend was issued in mid-April, with an ex-dividend date on April 1—exactly what you’d want to see from a company that respects the importance of steady income for its shareholders.
Looking deeper into the quality of those payouts, the underlying fundamentals are strong. Return on equity sits right around 10%, and net income for the trailing twelve months came in at nearly $55 million. This is not a payout fueled by leverage or cost-cutting—it’s supported by real profitability.
Dividend Growth and Safety
While THFF might not be known for aggressive dividend growth, there’s something to be said for quiet reliability. Over the past five years, the average yield has hovered just below 3%, and with the current payout now topping 4%, that marks a clear trend upward. It’s the kind of growth that doesn’t raise eyebrows but steadily builds value over time.
Cash reserves are solid, with over $86 million on hand—more than $7 per share. Total debt is manageable at roughly $262 million, and when compared to its asset base and $600 million market cap, there’s no red flag here. The company isn’t overextended, and it’s not borrowing to fund shareholder returns.
From an operational standpoint, THFF is remarkably efficient. Operating margins north of 40% and a profit margin of 25% are indicators of a well-run business. For dividend investors, that means the earnings powering those payouts are both high-quality and sustainable.
And just to underline how stable this operation really is, the last stock split took place all the way back in 2003. That may seem like a small detail, but it reflects a company that doesn’t need to use financial engineering to stay relevant. It focuses on the basics—and it does them well.
For income investors who value steady returns and a low-drama holding, First Financial Corporation offers a compelling story. It may not flash across news feeds, but its reliability, balance sheet strength, and thoughtful dividend policy make it a worthy candidate for long-term portfolios.
Cash Flow Statement
First Financial Corporation’s trailing twelve-month (TTM) cash flow shows a conservative but stable financial posture. Operating cash flow for the period came in at $60.4 million, marking a decline from $86.1 million in the prior year. While down from peak levels, it’s still well ahead of where it stood in 2021, suggesting operations remain fundamentally sound. Free cash flow landed at $54.3 million—plenty to cover dividends and maintain financial flexibility.
Investing cash flow was negative $66.1 million, driven largely by portfolio activity rather than excessive capital spending, with capital expenditures remaining modest at just over $6 million. Financing cash flow flipped to a positive $22.5 million after being deeply negative the previous two years, suggesting a pause or reversal in previous deleveraging or shareholder payout strategies. The cash position at year-end was $93.5 million, up from $76.8 million, providing a reassuring liquidity buffer. Overall, THFF continues to manage its capital base with restraint, balancing investment, shareholder returns, and stability.
Analyst Ratings
First Financial Corporation (THFF) has recently drawn a wave of optimism from analysts, with multiple firms adjusting their outlook to reflect stronger-than-expected performance and a solid forward trajectory. 🟢 In February 2025, Janney Montgomery Scott shifted its stance from Neutral to Buy, raising its price target to $58.00. This came on the heels of a particularly strong earnings report and improved visibility into the bank’s net interest margin resilience.
🟢 Earlier, in December 2024, Raymond James followed suit by upgrading THFF from Market Perform to Outperform. Their analysts pointed to First Financial’s consistency in financial delivery and its ability to maintain efficiency and asset quality even as many regional peers saw some erosion. They assigned a $54.00 price target, citing the bank’s conservative balance sheet and stable loan portfolio as key advantages.
📊 The current consensus among covering analysts lands at a Moderate Buy rating. The average 12-month price target stands at $55.67, which implies a potential upside of around 11% from the latest share price. Price targets in general are clustered between $54.00 and $58.00, reflecting confidence but also a recognition that the stock has already had a solid run.
🔎 These upgrades and revised targets signal a clear shift in sentiment. Analysts seem to appreciate the combination of predictable performance, high-quality management, and the bank’s capacity to generate dependable returns for shareholders.
Earning Report Summary
First Financial Corporation kicked off 2025 with a strong start, showing solid momentum in the first quarter. The bank posted net income of $18.4 million, which is a noticeable jump from $10.9 million in the same period last year. That pushed earnings per share up to $1.55, compared to $0.93 a year ago. It’s clear the business is benefiting from both strong top-line performance and disciplined cost control.
Net Interest Income on the Rise
One of the standout metrics from the quarter was net interest income, which climbed to a record $52 million. That’s a year-over-year increase of more than 33 percent. The net interest margin improved too, reaching 4.11 percent compared to 3.53 percent last year. That spread tells a story of efficient balance sheet management and a banking environment that’s been leaning in their favor when it comes to rates.
Loan and Deposit Growth
Loan growth also looked healthy, with average total loans up nearly 21 percent to $3.84 billion. This growth wasn’t just organic—the acquisition of SimplyBank last summer played a big part, adding $467 million to the loan book. Deposits followed suit, increasing about 15 percent to $4.65 billion, thanks again to the SimplyBank acquisition which brought in over $600 million in new deposits.
Cleaner Credit Picture
The credit side of things is looking better too. Nonperforming loans dropped to $10.2 million, now just 0.26 percent of total loans. That’s down quite a bit from the 0.76 percent they reported a year ago. The bank is also maintaining a strong cushion, with its allowance for credit losses at 1.22 percent of total loans. That shows a careful, conservative approach to managing potential risk.
Stronger Operations
Another highlight was the efficiency ratio, which fell to 57.54 percent from 67.21 percent a year earlier. That’s a big improvement and speaks to a business getting leaner and more effective at managing costs relative to revenue.
Leadership Outlook
President and CEO Norman Lowery spoke positively about the results, pointing out that the bank has now put together six straight quarters of loan growth. He was especially pleased with the record-setting net interest income and emphasized the company’s solid credit quality and strong capital position. His tone reflected confidence about the path forward, with the business well-positioned to build on this momentum.
The numbers and commentary from leadership suggest a company that’s in a good place—growing, well-managed, and focused on continuing that trend through the rest of the year.
Final Thoughts
First Financial Corporation (THFF) presents a compelling case for dividend investors seeking a blend of solid yield and consistent performance. The bank’s recent financial results, marked by significant earnings and revenue growth, underscore its effective management and resilience within the regional banking landscape. Coupled with a healthy dividend yield, a conservative payout ratio, and a history of reliable distributions, THFF stands out as a potentially stable and income-generating component for a long-term investment portfolio. The positive shift in analyst sentiment further reinforces the view that this Indiana-based institution is well-positioned to continue delivering value to its shareholders.