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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 59.9GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.2%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.54%
Trailing Yield
$3.54
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
42%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FIRST FINANCIAL CORP /IN/ (THFF) receives a "Hold" rating with a composite score of 55.2/100, ranked #448 out of 4446 stocks. Key factor scores: Quality 60/100, Value 73/100, Momentum 55/100. This is quantitative analysis only — not investment advice.
FIRST FINANCIAL CORP /IN/ (THFF) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIRST FINANCIAL CORP /IN/ Do?
First Financial Corporation, through its subsidiaries, provides various financial services. It offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. The company also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, it offers lease financing, trust account, depositor, and insurance services. The company operates 78 branches in west-central Indiana, east-central Illinois, western Kentucky, and middle and western Tennessee. First Financial Corporation was founded in 1834 and is headquartered in Terre Haute, Indiana. FIRST FINANCIAL CORP /IN/ (THFF) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Norman L. Lowery and employs approximately 880 people, headquartered in TERRE HAUTE, Indiana. With a market capitalization of $755M, THFF is one of the notable companies in the Financials sector.
FIRST FINANCIAL CORP /IN/ (THFF) Stock Rating — Hold (April 2026)
As of April 2026, FIRST FINANCIAL CORP /IN/ receives a Hold rating with a composite score of 55.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.THFF ranks #448 out of 4,446 stocks in our coverage universe. Within the Financials sector, FIRST FINANCIAL CORP /IN/ ranks #144 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
THFF Stock Price and 52-Week Range
FIRST FINANCIAL CORP /IN/ (THFF) currently trades at $66.85. The stock lost $0.64 (0.9%) in the most recent trading session. The 52-week high for THFF is $69.21, which means the stock is currently trading -3.4% from its annual peak. The 52-week low is $42.05, putting the stock 59.0% above its annual trough. Recent trading volume was 73K shares, suggesting relatively thin trading activity.
Is THFF Overvalued or Undervalued? — Valuation Analysis
FIRST FINANCIAL CORP /IN/ (THFF) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.88x, compared to the Financials sector average of 14.88x — a discount of 20%. The price-to-book ratio stands at 1.21x, versus the sector average of 1.22x. The price-to-sales ratio is 2.67x, compared to 0.90x for the average Financials stock. On an enterprise value basis, THFF trades at 11.81x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, FIRST FINANCIAL CORP /IN/ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
FIRST FINANCIAL CORP /IN/ Profitability — ROE, Margins, and Quality Score
FIRST FINANCIAL CORP /IN/ (THFF) earns a quality factor score of 60/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.2%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.2% versus the sector average of 1.2%.
On a margin basis, FIRST FINANCIAL CORP /IN/ reports gross margins of 0.0%. The operating margin is 27.9% (sector: 21.8%). Net profit margin stands at 22.4%, versus 17.7% for the average Financials stock. Revenue growth is running at 26.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
THFF Debt, Balance Sheet, and Financial Health
FIRST FINANCIAL CORP /IN/ has a debt-to-equity ratio of 29.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $188M. Cash and equivalents stand at $87M.
THFF has a beta of 0.76, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for FIRST FINANCIAL CORP /IN/ is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FIRST FINANCIAL CORP /IN/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIRST FINANCIAL CORP /IN/ reported revenue of $296M and earnings per share (EPS) of $6.68. Net income for the quarter was $66M. Gross margin was 0.0%. Operating income came in at $83M.
In FY 2025, FIRST FINANCIAL CORP /IN/ reported revenue of $306M and earnings per share (EPS) of $6.68. Net income for the quarter was $79M. Revenue grew 15.4% year-over-year compared to FY 2024. Operating income came in at $99M.
In Q3 2025, FIRST FINANCIAL CORP /IN/ reported revenue of $77M and earnings per share (EPS) of $1.75. Net income for the quarter was $21M. Revenue grew 6.9% year-over-year compared to Q3 2024. Operating income came in at $26M.
In Q2 2025, FIRST FINANCIAL CORP /IN/ reported revenue of $74M and earnings per share (EPS) of $1.57. Net income for the quarter was $19M. Revenue grew 22.1% year-over-year compared to Q2 2024. Operating income came in at $23M.
Over the past 8 quarters, FIRST FINANCIAL CORP /IN/ has demonstrated a growth trajectory, with revenue expanding from $61M to $296M. Investors analyzing THFF stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
THFF Dividend Yield and Income Analysis
FIRST FINANCIAL CORP /IN/ (THFF) currently pays a dividend yield of 3.5%. At this yield, a $10,000 investment in THFF stock would generate approximately $$354.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning THFF offers above-average income for its sector. With a net margin of 22.4%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
THFF Momentum and Technical Analysis Profile
FIRST FINANCIAL CORP /IN/ (THFF) has a momentum factor score of 55/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
THFF vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing THFF against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full THFF vs S&P 500 (SPY) comparison to assess how FIRST FINANCIAL CORP /IN/ stacks up against the broader market across all factor dimensions.
THFF Next Earnings Date
No upcoming earnings date has been announced for FIRST FINANCIAL CORP /IN/ (THFF) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy THFF? — Investment Thesis Summary
FIRST FINANCIAL CORP /IN/ presents a balanced picture with arguments on both sides. The quality score of 60/100 indicates above-average profitability and business fundamentals. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, FIRST FINANCIAL CORP /IN/ (THFF) earns a Hold rating with a composite score of 55.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on THFF stock.
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Institutional Research Dossier
FIRST FINANCIAL CORP /IN/ (THFF) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage of First Financial Corporation (THFF) with a Buy rating. This rating is predicated on the company's compelling valuation relative to its peers, its superior profitability metrics, and its recent history of robust revenue growth. While the company's investment score is low, indicating potential concerns about capital allocation or growth initiatives, the attractive valuation and strong profitability provide a sufficient margin of safety.
The most critical takeaway is that THFF presents a value opportunity within the financial sector. The company's P/E and EV/EBITDA ratios are significantly lower than the sector averages, while its ROE, operating margin, and net margin are notably higher. This suggests that the market is undervaluing THFF's earnings power and efficiency. However, investors should closely monitor the company's capital allocation decisions and future growth strategies to ensure that they align with shareholder value creation.
Business Strategy & Overview
First Financial Corporation operates as a community bank, providing a range of financial services to individuals and businesses across its four-state footprint. The company's core business revolves around attracting deposits and extending loans, generating revenue from the interest rate spread. THFF differentiates itself through its local market focus, relationship-based banking approach, and commitment to serving the needs of its communities. This strategy allows it to compete effectively against larger national banks that may lack the same level of personalized service and local market expertise.
The company's loan portfolio is diversified across commercial loans, residential real estate loans, and consumer loans. This diversification helps to mitigate credit risk and provides a stable stream of interest income. THFF also offers lease financing, trust account services, depositor services, and insurance services, which contribute to its overall revenue mix and enhance customer relationships. The expansion into new geographic markets, such as western Kentucky and middle/western Tennessee, represents a key growth strategy for the company. By establishing a presence in these markets, THFF aims to increase its deposit base, expand its loan portfolio, and diversify its revenue streams.
THFF's strategic positioning within the community banking sector allows it to capitalize on the growing demand for local banking services. As larger banks continue to consolidate and reduce their branch networks, community banks like THFF are well-positioned to attract customers who value personalized service and local market knowledge. The company's focus on building strong relationships with its customers and communities provides a competitive advantage that is difficult for larger banks to replicate.
The company's recent revenue growth of 26.1% significantly outpaces the sector average of 9.3%, indicating that THFF is successfully executing its growth strategy. This growth is likely driven by a combination of factors, including increased loan demand, expansion into new markets, and effective marketing efforts. However, it is important to note that the financial services industry is highly competitive and subject to regulatory changes, which could impact THFF's future growth prospects.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
26.1%
Sector: 9.4%
+178% VS SCTR
Economic Moat Analysis
First Financial Corporation possesses a narrow economic moat, primarily derived from its established local presence and customer relationships. While the banking industry is generally competitive, community banks like THFF can cultivate a degree of customer loyalty through personalized service and a deep understanding of the local market. This localized expertise and relationship-based approach create a switching cost for customers who value these attributes, making them less likely to switch to a larger, less personalized bank.
The company's branch network in west-central Indiana, east-central Illinois, western Kentucky, and middle and western Tennessee provides a physical presence that reinforces its local market focus. This network allows THFF to build brand awareness, attract deposits, and extend loans within its target markets. While online banking and mobile banking are becoming increasingly prevalent, many customers still prefer to have access to a physical branch for certain transactions and services.
However, the moat is narrow due to the relatively low barriers to entry in the banking industry. New banks can be established, and existing banks can expand into new markets. Furthermore, the increasing prevalence of online banking and fintech companies is eroding the traditional advantages of brick-and-mortar banks. Customers now have more options than ever before for managing their finances, which reduces their reliance on traditional banks.
The company's intangible assets, such as its brand reputation and customer relationships, contribute to its narrow moat. However, these assets are not as strong as those of larger, more established banks with national brands. THFF's cost advantages are also limited, as it does not have the same economies of scale as larger banks. Therefore, while THFF possesses a narrow economic moat, it is important to recognize that this moat is vulnerable to competitive pressures and technological disruption.
Financial Health & Profitability
First Financial Corporation exhibits a solid financial health profile, characterized by strong profitability metrics and a manageable level of debt. The company's ROE of 10.2% is higher than the sector average of 8.5%, indicating that THFF is effectively utilizing its equity to generate profits. Its operating margin of 27.9% and net margin of 22.4% also exceed the sector averages, demonstrating its efficiency in managing expenses and generating earnings.
The company's revenue growth of 26.1% in the most recent fiscal year is significantly higher than the sector average of 9.3%, indicating strong business momentum. This growth is likely driven by a combination of factors, including increased loan demand, expansion into new markets, and effective marketing efforts. The quarterly financial history shows a consistent trend of revenue and net income growth over the past several quarters, suggesting that the company's growth strategy is paying off.
THFF's balance sheet is relatively conservative, with a debt-to-equity ratio of 29.00, which is significantly lower than the sector average of 115.00. This indicates that the company is not overly leveraged and has ample capacity to take on additional debt if needed. The current ratio of 1.13 suggests that the company has sufficient liquid assets to cover its short-term liabilities.
However, the company's free cash flow is negative at $-175.50M. This is a concern, as it indicates that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. It is important to investigate the reasons for this negative free cash flow and assess whether it is a temporary phenomenon or a sign of underlying financial problems. The lack of free cash flow data in the quarterly history makes it difficult to assess the trend.
Overall, THFF's financial health is strong, with robust profitability metrics and a conservative balance sheet. However, the negative free cash flow warrants further investigation. Investors should closely monitor the company's cash flow generation in future quarters to ensure that it is improving.
Valuation Assessment
First Financial Corporation appears undervalued based on several key valuation metrics. The company's P/E ratio of 9.1x is significantly lower than the sector average of 15.5x, suggesting that the market is undervaluing its earnings power. Similarly, its EV/EBITDA ratio of 2.3x is substantially lower than the sector average of 3.5x, indicating that the company is trading at a discount to its peers based on its enterprise value and operating performance.
Given THFF's superior profitability metrics, such as its higher ROE, operating margin, and net margin compared to the sector averages, the lower valuation multiples are particularly compelling. This suggests that the market is not fully recognizing the company's efficiency and earnings potential. The company's recent revenue growth of 26.1% further supports the argument that it is undervalued, as it is growing at a much faster rate than its peers.
However, the negative free cash flow is a potential concern that could be contributing to the lower valuation. Investors may be discounting the company's future earnings due to concerns about its cash flow generation. It is important to assess whether the negative free cash flow is a temporary issue or a sign of underlying financial problems.
Despite the negative free cash flow, the company's strong profitability and growth prospects suggest that it is undervalued. The low P/E and EV/EBITDA ratios provide a margin of safety for investors, as the company's earnings and operating performance could improve in the future. The BCR proprietary quant model also supports the Buy rating, with a value score of 74/100.
Overall, THFF's valuation appears attractive relative to its peers and its own historical performance. The company's strong profitability and growth prospects, combined with its low valuation multiples, make it a compelling investment opportunity. However, investors should closely monitor the company's cash flow generation and capital allocation decisions to ensure that they align with shareholder value creation.
Risk & Uncertainty
First Financial Corporation faces several risks and uncertainties that could impact its future performance. One of the primary risks is the competitive nature of the banking industry. THFF competes with larger national banks, regional banks, and credit unions, all of which are vying for the same customers and market share. The increasing prevalence of online banking and fintech companies is also intensifying competition, as customers now have more options than ever before for managing their finances.
Another risk is the potential for regulatory changes that could impact the company's profitability. The banking industry is heavily regulated, and changes in regulations could increase compliance costs, restrict lending activities, or reduce interest rate spreads. For example, changes in capital requirements or consumer protection laws could have a material impact on THFF's financial performance.
Credit risk is also a significant concern for THFF. The company's loan portfolio is exposed to the risk of borrowers defaulting on their loans. Economic downturns, rising interest rates, or industry-specific problems could lead to an increase in loan defaults, which would negatively impact the company's earnings. The company's concentration in specific geographic markets also increases its exposure to regional economic risks.
Interest rate risk is another important consideration. THFF's profitability is sensitive to changes in interest rates. Rising interest rates could increase the company's funding costs, while falling interest rates could reduce its interest income. The company's ability to manage its interest rate risk effectively is crucial to its long-term success.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTHFF's low valuation multiples (P/E and EV/EBITDA) relative to its peers provide a significant margin of safety and upside potential.
BULL VIEWThe company's superior profitability metrics (ROE, operating margin, and net margin) demonstrate its efficiency and earnings power, justifying a higher valuation.
BULL VIEWTHFF's strong revenue growth indicates that it is successfully executing its growth strategy and gaining market share.
The Bear Case
BEAR VIEWTHFF's negative free cash flow raises concerns about its financial health and ability to fund future growth.
BEAR VIEWThe company's narrow economic moat makes it vulnerable to competitive pressures from larger banks and fintech companies.
BEAR VIEWThe banking industry is highly regulated and subject to economic cycles, which could negatively impact THFF's profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score THFF and 4,400+ other equities.
FIRST FINANCIAL CORP /IN/ exhibits a 109% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.2%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
27.9%
Sector: 21.8%
Net Margin
Bottom-line profitability
22.4%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+43%
Income Projection audit
A $10,000 investment would generate approximately $354 annually in dividends at the current trailing rate.
