First Financial Q3 net income more than doubles on record net interest income

Overview

• First Financial Q3 net income more than doubles to $20.8 mln from $8.7 mln in 2024

• Net interest income hits record $54.6 mln, driven by loan growth and margin expansion

• Credit loss provision drops to $2 mln from $9.4 mln in Q3 2024

Outlook

• Company anticipates further net interest margin expansion due to liability-sensitive positioning

Result Drivers

• LOAN GROWTH - Organic growth in Commercial Construction, Commercial Real Estate, and Consumer Auto loans drove results

• MARGIN EXPANSION - Net interest margin increased to 4.25%, aided by liability-sensitive positioning

• CREDIT LOSS PROVISION - Provision for credit losses decreased significantly to $2 mln from $9.4 mln in Q3 2024

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Financial Corp is $61.50, about 11.4% above its October 27 closing price of $54.52

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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