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Second Quarter 2026 Financial Highlights

Net Income

Net income for First Financial Corporation was $22.7 million for the second quarter of 2026, an increase from $18.6 million for the same period in 2025. For the six months ended June 30, 2026, net income was $42.5 million, up from $37.0 million in the prior year period.

Return on Average Assets

Return on average assets was 1.48% for the three months ended June 30, 2026, compared to 1.34% for the same period in 2025. For the six months ended June 30, 2026, return on average assets was 1.42%, compared to 1.34% for the six months ended June 30, 2025.

Provision for Credit Losses

The provision for credit losses was $1.3 million for the second quarter of 2026, a decrease from $2.0 million in the second quarter of 2025. For the six months ended June 30, 2026, the provision for credit losses was $3.9 million, consistent with $3.9 million for the same period in 2025.

Pre-Tax, Pre-Provision Net Income

Pre-tax, pre-provision net income reached $29.3 million for the second quarter of 2026, compared to $24.9 million for the same period in 2025. For the six months ended June 30, 2026, this metric was $56.6 million, up from $50.6 million in the prior year period.

Acquisition

First Financial Corporation completed the acquisition of CedarStone Financial, Inc. on March 1, 2026, which added $292 million in loans and $313 million in deposits. The cumulative resulting quarter-end bargain purchase gain was $33 thousand, after measurement period adjustments in the second quarter.

Average Total Loans

Average total loans for the second quarter of 2026 were $4.45 billion, an increase of $575 million or 14.83% from $3.88 billion in the comparable period of 2025. On a linked quarter basis, average loans increased $282 million or 6.78% from $4.16 billion as of March 31, 2026.

Total Loans Outstanding

Total loans outstanding as of June 30, 2026, were $4.47 billion, an increase of $571 million or 14.66% from $3.90 billion as of June 30, 2025. Total loans increased $44.0 million or 0.99% from $4.42 billion as of March 31, 2026, on a linked quarter basis.

Organic Loan Growth

Organic loan growth was $300 million year-over-year, primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

Net Interest Margin

The net interest margin for the quarter ended June 30, 2026, was 4.33%, up from 4.15% reported at June 30, 2025.

Average Total Deposits

Average total deposits for the quarter ended June 30, 2026, were $4.87 billion, an increase of $218 million or 4.68% from $4.65 billion as of June 30, 2025. On a linked quarter basis, average deposits increased $205 million or 4.40% from $4.66 billion as of March 31, 2026.

Total Deposits (End of Period)

Total deposits were $4.83 billion as of June 30, 2026, compared to $4.66 billion as of June 30, 2025. Non-interest bearing deposits were $999 million and time deposits were $802 million as of June 30, 2026, compared to $860 million and $710 million, respectively, for the same period of 2025.

Shareholders’ Equity

Shareholders’ equity at June 30, 2026, was $675.8 million, up from $587.7 million on June 30, 2025.

Book Value Per Share

Book Value per share was $56.83 as of June 30, 2026, an increase of $7.24 per share or 14.60% from $49.59 as of June 30, 2025.

Tangible Book Value Per Share

Tangible Book Value per share was $46.98 as of June 30, 2026, an increase of $7.24 per share or 18.22% from $39.74 as of June 30, 2025.

Tangible Common Equity to Tangible Asset Ratio

The Corporation’s tangible common equity to tangible asset ratio was 9.22% at June 30, 2026, compared to 8.58% at June 30, 2025.

Net Interest Income

Net interest income for the second quarter of 2026 was a record $61.2 million, an increase of $8.5 million or 16.2% from $52.7 million reported for the same period of 2025. Interest income increased by $10.0 million, and interest expense increased by $1.5 million year over year.

Nonperforming Loans

Nonperforming loans as of June 30, 2026, were $27.1 million, significantly higher than $9.8 million as of June 30, 2025. The ratio of nonperforming loans to total loans and leases was 0.61% as of June 30, 2026, compared to 0.25% as of June 30, 2025. On a linked quarter basis, nonperforming loans were $28.5 million, and the ratio was 0.64% as of March 31, 2026.

Net Charge-Offs

Net charge-offs in the second quarter of 2026 were $2.7 million, compared to $1.7 million in the same period of 2025.

Allowance for Credit Losses

The allowance for credit losses as of June 30, 2026, was $50.9 million, compared to $47.1 million as of June 30, 2025. The allowance for credit losses as a percent of total loans was 1.14% as of June 30, 2026, compared to 1.21% as of June 30, 2025.

Non-Interest Income

Non-interest income for the three months ended June 30, 2026, was $10.6 million, slightly up from $10.4 million for the same period in 2025.

Non-Interest Expense

Non-interest expense for the three months ended June 30, 2026, was $42.5 million, compared to $38.3 million in 2025.

Efficiency Ratio

The Corporation’s efficiency ratio was 57.95% for the quarter ending June 30, 2026, an improvement from 59.37% for the same period in 2025.

Income Taxes

Income tax expense for the three months ended June 30, 2026, was $5.3 million, compared to $4.2 million for the same period in 2025. The effective tax rate for 2026 was 18.89%, up from 18.58% for 2025.

Asset Quality

Accruing loans and leases past due 30-89 days were $12.7 million as of June 30, 2026, down from $22.3 million as of June 30, 2025. Nonaccrual loans and leases significantly increased to $24.0 million as of June 30, 2026, from $7.9 million as of June 30, 2025. Total nonperforming assets were $30.8 million as of June 30, 2026, compared to $13.1 million as of June 30, 2025.

Management Commentary

Norman D. Lowery, President and Chief Executive Officer, expressed satisfaction with the second quarter results, noting it was the eleventh consecutive quarter of loan growth and another quarter of record net income. He highlighted the strong net interest margin of 4.33% and a 1.48% return on assets.

Outlook/Guidance

The provided reference text does not contain any outlook or guidance content.