Earnings release
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Exhibit 99.1 FIRST FINANCIAL CORPORATION One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000 First Financial Corporation Reports Third Quarter Results Terre Haute, Indiana, October 28, 2025 – First Financial Corporation (NASDAQ:THFF) today announced results for the third quarter of 2025. ● Net income was $20.8 million compared to $8.7 million reported for the same period of 2024; ● Diluted net income per common share of $1.75 compared to $0.74 for the same period of 2024; ● Return on average assets was 1.48% compared to 0.64% for the three months ended September 30, 2024; ● Provision for credit losses was $2.0 million compared to provision of $9.4 million for the third quarter 2024; and ● Pre-tax, pre-provision net income was $27.7 million compared to $19.9 million for the same period in 2024.1 The Corporation further reported results for the nine months ended September 30, 2025: ● Net income was $57.8 million compared to $31.0 million reported for the same period of 2024; ● Diluted net income per common share of $4.87 compared to $2.63 for the same period of 2024; ● Return on average assets was 1.39% compared to 0.82% for the nine months ended September 30, 2024; ● Provision for credit losses was $5.9 million compared to provision of $14.2 million for the nine months ended September 30, 2024; and ● Pre-tax, pre-provision net income was $78.3 million compared to $51.1 million for the same period in 2024.1 1 Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release. Average Total Loans Average total loans for the third quarter of 2025 were $3.93 billion versus $3.71 billion for the comparable period in 2024, an increase of $223 million or 6.02%. On a linked quarter basis, average loans increased $52 million or 1.33% from $3.88 billion as of June 30, 2025. Total Loans Outstanding Total loans outstanding as of September 30, 2025, were $3.97 billion compared to $3.72 billion as of September 30, 2024, an increase of $252 million or 6.79%. On a linked quarter basis, total loans increased $70.8 million or 1.82% from $3.90 billion as of June 30, 2025. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans. Norman D. Lowery, President and Chief Executive Officer, commented “We are satisfied with our third quarter performance, marking the eighth consecutive quarter of loan growth and maintaining robust pipelines. Additionally, we achieved another record in net interest income with our net margin increasing to 4.25%. We anticipate further margin expansion due to our liability-sensitive positioning. Our capital position remains solid, ensuring we are well equipped for the current market environment.” News Release
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Average Total Deposits Average total deposits for the quarter ended September 30, 2025, were $4.59 billion versus $4.71 billion as of September 30, 2024, a decrease of $114 million, or 2.42%. On a linked quarter basis, average deposits decreased $59 million or 1.28% from $4.65 billion as of June 30, 2025. Total Deposits Total deposits were $4.62 billion as of September 30, 2025, compared to $4.72 billion as of September 30, 2024. On a linked quarter basis, total deposits decreased $47.6 million or 1.02% from $4.66 billion as of June 30, 2025. Non-interest bearing deposits were $850 million, and time deposits were $703 million as of September 30, 2025, compared to $831.6 million and $791.1 million, respectively for the same period of 2024. Shareholders’ Equity Shareholders’ equity at September 30, 2025, was $622.2 million compared to $566.0 million on September 30, 2024. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.51 per share quarterly dividend in July and declared a $0.51 quarterly dividend, which was paid on October 15, 2025. Book Value Per Share Book Value per share was $52.50 as of September 30, 2025, compared to $47.93 as of September 30, 2024, an increase of $4.58 per share, or 9.55%. Tangible Book Value per share was $42.75 as of September 30, 2025, compared to $37.84 as of September 30, 2024, an increase of $4.91 per share or 12.98%. Tangible Common Equity to Tangible Asset Ratio The Corporation’s tangible common equity to tangible asset ratio was 9.12% at September 30, 2025, compared to 8.33% at September 30, 2024. Net Interest Income Net interest income for the third quarter of 2025 was a record $54.6 million, compared to $47.2 million reported for the same period of 2024, an increase of $7.4 million, or 15.8%. Interest income increased $4.9 million and interest expense decreased $2.5 million year over year. As mentioned in the president’s comments above, loan growth has continued for eight consecutive quarters, which contributed to steadily increasing net interest income. Net Interest Margin The net interest margin for the quarter ended September 30, 2025, was 4.25% compared to the 3.78% reported at September 30, 2024. Nonperforming Loans Nonperforming loans as of September 30, 2025, were $19.3 million versus $14.1 million as of September 30, 2024. The ratio of nonperforming loans to total loans and leases was 0.49% as of September 30, 2025, versus 0.38% as of September 30, 2024. On a linked quarter basis, nonperforming loans were $9.8 million, and the ratio of nonperforming loans to total loans and leases was 0.25% as of June 30, 2025. Credit Loss Provision The provision for credit losses for the three months ended September 30, 2025, was $2.0 million, compared to $9.4 million for the same period 2024. During September 2024, the Corporation recorded $5.5 million in provision for the acquisition of SimplyBank. The increase in provision in 2024 was also related to one previously identified credit, reflecting further deterioration in collateral values during the quarter. Net Charge-Offs In the third quarter of 2025 net charge-offs were $1.6 million compared to $4.6 million in the same period of 2024.
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Allowance for Credit Losses The Corporation’s allowance for credit losses as of September 30, 2025, was $47.4 million compared to $46.2 million as of September 30, 2024. The allowance for credit losses as a percent of total loans was 1.20% as of September 30, 2025, compared to 1.24% as of September 30, 2024. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased one basis point from 1.21% as of June 30, 2025. Non-Interest Income Non-interest income for the three months ended September 30, 2025 and 2024 was $11.1 million and $11.2 million, respectively. Non-Interest Expense Non-interest expense for the three months ended September 30, 2025, was $38.0 million compared to $38.6 million in 2024. This includes $844 thousand of acquisition-related expenses during the quarter in 2024. Efficiency Ratio The Corporation’s efficiency ratio was 56.63% for the quarter ending September 30, 2025, versus 64.43% for the same period in 2024. Income Taxes Income tax expense for the three months ended September 30, 2025, was $5.0 million versus $1.7 million for the same period in 2024. The effective tax rate for 2025 was 20.18% compared to 16.44% for 2024. About First Financial Corporation First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 79 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. Additional information is available at www.first-online.bank. Investor Contact: Rodger A. McHargue Chief Financial Officer P: 812-238-6334 E: rmchargue@first-online.com
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Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2025 2025 2024 2025 2024 END OF PERIOD BALANCES Assets $ 5,669,686 $ 5,602,969 $ 5,483,351 $ 5,669,686 $ 5,483,351 Deposits $ 4,615,305 $ 4,662,889 $ 4,717,489 $ 4,615,305 $ 4,717,489 Loans, including net deferred loan costs $ 3,967,401 $ 3,896,563 $ 3,715,235 $ 3,967,401 $ 3,715,235Allowance for Credit Losses $ 47,411 $ 47,087 $ 46,169 $ 47,411 $ 46,169Total Equity $ 622,218 $ 587,668 $ 565,951 $ 622,218 $ 565,951Tangible Common Equity (a) $ 506,604 $ 470,894 $ 446,786 $ 506,604 $ 446,786 AVERAGE BALANCES Total Assets $ 5,593,870 $ 5,529,225 $ 5,483,572 $ 5,543,954 $ 5,033,748 Earning Assets $ 5,270,173 $ 5,213,220 $ 5,165,520 $ 5,225,957 $ 4,762,940 Investments $ 1,248,519 $ 1,244,208 $ 1,342,037 $ 1,253,009 $ 1,309,879 Loans $ 3,928,817 $ 3,877,246 $ 3,705,779 $ 3,882,605 $ 3,361,207 Total Deposits $ 4,591,531 $ 4,651,051 $ 4,705,614 $ 4,631,155 $ 4,288,426 Interest-Bearing Deposits $ 3,783,393 $ 3,843,143 $ 4,403,454 $ 3,821,405 $ 3,714,432Interest-Bearing Liabilities $ 359,579 $ 269,338 $ 157,227 $ 296,667 $ 176,985 Total Equity $ 601,034 $ 576,288 $ 546,912 $ 580,688 $ 529,174 INCOME STATEMENT DATA Net Interest Income $ 54,603 $ 52,671 $ 47,170 $ 159,249 $ 125,384Net Interest Income Fully Tax Equivalent (b) $ 56,033 $ 54,091 $ 48,630 $ 163,497 $ 129,600Provision for Credit Losses $ 1,950 $ 1,950 $ 9,400 $ 5,850 $ 14,166Non-interest Income $ 11,149 $ 10,381 $ 11,223 $ 32,041 $ 30,559Non-interest Expense $ 38,048 $ 38,276 $ 38,564 $ 113,083 $ 104,637Net Income $ 20,762 $ 18,586 $ 8,741 $ 57,754 $ 31,034 PER SHARE DATA Basic and Diluted Net Income Per Common Share $ 1.75 $ 1.57 $ 0.74 $ 4.87 $ 2.63Cash Dividends Declared Per Common Share $ 0.51 $ 0.51 $ 0.45 $ 1.53 $ 1.35Book Value Per Common Share $ 52.50 $ 49.59 $ 47.93 $ 52.50 $ 47.93Tangible Book Value Per Common Share (c) $ 40.96 $ 38.78 $ 36.22 $ 42.75 $ 37.84Basic Weighted Average Common Shares Outstanding 11,851 11,851 11,808 11,848 11,809 (a) Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity byexcluding goodwill and other intangible assets from shareholder’s equity.(b) Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest incomefully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of taxexempt income by dividing tax exempt income by the net of tax rate of 75%.(c) Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividingaverage tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assetsfrom average shareholder’s equity.
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Key Ratios Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2025 2025 2024 2025 2024 Return on average assets 1.48 % 1.34 % 0.64 % 1.39 % 0.82 %Return on average common shareholder's equity 13.82 % 12.90 % 6.39 % 13.23 % 7.80 %Efficiency ratio 56.63 % 59.37 % 64.43 % 57.83 % 65.33 %Average equity to average assets 10.74 % 10.42 % 9.97 % 10.47 % 10.51 %Net interest margin (a) 4.25 % 4.15 % 3.78 % 4.17 % 3.63 %Net charge-offs to average loans and leases 0.17 % 0.18 % 0.49 % 0.18 % 0.43 %Credit loss reserve to loans and leases 1.20 % 1.21 % 1.24 % 1.20 % 1.24 %Credit loss reserve to nonperforming loans 246.14 % 480.72 % 326.65 % 246.14 % 326.65 %Nonperforming loans to loans and leases 0.49 % 0.25 % 0.38 % 0.49 % 0.38 %Tier 1 leverage 11.05 % 10.91 % 10.25 % 11.05 % 10.25 %Risk-based capital - Tier 1 13.12 % 12.86 % 12.31 % 13.12 % 12.31 % (a) Net interest margin is calculated on a tax equivalent basis. Asset Quality Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2025 2025 2024 2025 2024 Accruing loans and leases past due 30-89 days $ 14,388 $ 22,303 $ 16,391 $ 14,388 $ 16,391Accruing loans and leases past due 90 days or more $ 1,792 $ 1,917 $ 1,517 $ 1,792 $ 1,517Nonaccrual loans and leases $ 17,470 $ 7,878 $ 12,617 $ 17,470 $ 12,617Other real estate owned $ 138 $ 383 $ 169 $ 138 $ 169 Nonperforming loans and other real estate owned $ 19,400 $ 10,178 $ 14,303 $ 19,400 $ 14,303 Total nonperforming assets $ 22,243 $ 13,087 $ 17,179 $ 22,243 $ 17,179Gross charge-offs $ 3,226 $ 2,928 $ 6,936 $ 9,395 $ 16,219Recoveries $ 1,600 $ 1,230 $ 2,365 $ 4,224 $ 5,449Net charge-offs/(recoveries) $ 1,626 $ 1,698 $ 4,571 $ 5,171 $ 10,770 Non-GAAP Reconciliations Three Months Ended September 30, 2025 2024 ($in thousands, except EPS)Income before Income Taxes $ 25,754 $ 10,429Provision for credit losses 1,950 9,400Provision for unfunded commitments — 100 Pre-tax, Pre-provision Income $ 27,704 $ 19,929 Non-GAAP Reconciliations Nine Months Ended September 30, 2025 2024 ($ in thousands, except EPS)Income before Income Taxes $ 72,357 $ 37,140Provision for credit losses 5,850 14,166Provision for unfunded commitments 100 (200) Pre-tax, Pre-provision Income $ 78,307 $ 51,106
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CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data) September 30, December 31, 2025 2024 (unaudited) ASSETSCash and due from banks $ 87,438 $ 93,526Federal funds sold 157 820Securities available-for-sale 1,186,107 1,195,990Loans: Commercial 2,282,062 2,196,351Residential 997,915 967,386 Consumer 682,438 668,058 3,962,415 3,831,795(Less) plus: Net deferred loan costs 4,986 5,346 Allowance for credit losses (47,411) (46,732) 3,919,990 3,790,409Restricted stock 18,761 17,555Accrued interest receivable 26,526 26,934Premises and equipment, net 79,351 81,508Bank-owned life insurance 130,747 128,766Goodwill 98,229 100,026Other intangible assets 17,385 21,545Other real estate owned 138 523 Other assets 104,857 102,746 TOTAL ASSETS $ 5,669,686 $ 5,560,348 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Non-interest-bearing $ 849,978 $ 859,014Interest-bearing: Certificates of deposit exceeding the FDIC insurance limits 138,603 144,982 Other interest-bearing deposits 3,626,724 3,714,918 4,615,305 4,718,914Short-term borrowings 182,522 187,057FHLB advances 170,453 28,120 Other liabilities 79,188 77,216 TOTAL LIABILITIES 5,047,468 5,011,307 Shareholders’ equity Common stock, $.125 stated value per share; Authorized shares-40,000,000 Issued shares-16,190,157 in 2025 and 16,165,023 in 2024 Outstanding shares-11,850,645 in 2025 and 11,842,539 in 2024 2,020 2,018Additional paid-in capital 146,624 145,927Retained earnings 726,989 687,366Accumulated other comprehensive income/(loss) (98,635) (132,285) Less: Treasury shares at cost-4,339,512 in 2025 and 4,322,484 in 2024 (154,780) (153,985) TOTAL SHAREHOLDERS’ EQUITY 622,218 549,041 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,669,686 $ 5,560,348
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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data) Three Months Ended Nine Months EndedSeptember 30, September 30, 2025 2024 2025 2024 (unaudited) INTEREST INCOME:Loans, including related fees $ 67,070 $ 61,367 $ 195,457 $ 162,878Securities: Taxable 5,985 6,319 17,902 18,083Tax-exempt 2,689 2,715 7,915 7,919 Other 900 1,294 2,579 2,989 TOTAL INTEREST INCOME 76,644 71,695 223,853 191,869 INTEREST EXPENSE: Deposits 18,002 22,197 54,696 59,622Short-term borrowings 1,916 993 5,007 2,928 Other borrowings 2,123 1,335 4,901 3,935 TOTAL INTEREST EXPENSE 22,041 24,525 64,604 66,485 NET INTEREST INCOME 54,603 47,170 159,249 125,384 Provision for credit losses 1,950 9,400 5,850 14,166 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 52,653 37,770 153,399 111,218NON-INTEREST INCOME: Trust and financial services 1,278 1,251 4,161 3,903Service charges and fees on deposit accounts 8,104 8,139 23,243 21,576Other service charges and fees 251 191 823 700Securities gains (losses), net 24 103 21 104Interchange income 176 177 570 490Loan servicing fees 338 274 830 957Gain on sales of mortgage loans 494 411 1,149 886 Other 484 677 1,244 1,943 TOTAL NON-INTEREST INCOME 11,149 11,223 32,041 30,559 NON-INTEREST EXPENSE: Salaries and employee benefits 19,788 18,521 58,725 53,231Occupancy expense 2,738 2,556 7,886 7,116Equipment expense 4,811 4,280 13,903 12,736FDIC Expense 690 558 2,235 1,721 Other 10,021 12,649 30,334 29,833 TOTAL NON-INTEREST EXPENSE 38,048 38,564 113,083 104,637 INCOME BEFORE INCOME TAXES 25,754 10,429 72,357 37,140 Provision for income taxes 4,992 1,688 14,603 6,106 NET INCOME 20,762 8,741 57,754 31,034OTHER COMPREHENSIVE INCOME (LOSS) Change in unrealized gains/(losses) on securities, net of reclassifications and taxes 19,596 31,628 33,642 24,067 Change in funded status of post retirement benefits, net of taxes 3 73 8 220 COMPREHENSIVE INCOME (LOSS) $ 40,361 $ 40,442 $ 91,404 $ 55,321 PER SHARE DATA Basic and Diluted Earnings per Share $ 1.75 $ 0.74 $ 4.87 $ 2.63 Weighted average number of shares outstanding (in thousands) 11,851 11,808 11,848 11,809