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 Second Quarter Results Terre Haute, Indiana, July 28, 2026 – First Financial Corporation (NASDAQ:THFF) today announced results for the second quarter of 2026. ● Net income was $22.7 million compared to $18.6 million reported for the same period of 2025; ● Diluted net income per common share of $1.91 compared to $1.57 for the same period of 2025; ● Return on average assets was 1.48% compared to 1.34% for the three months ended June 30, 2025; ● Provision for credit losses was $1.3 million compared to provision of $2.0 million for the second quarter 2025; and ● Pre-tax, pre-provision net income was $29.3 million compared to $24.9 million for the same period in 2025.1 The Corporation further reported results for the six months ended June 30, 2026: ● Net income was $42.5 million compared to $37.0 million reported for the same period of 2025; ● Diluted net income per common share of $3.58 compared to $3.12 for the same period of 2025; ● Return on average assets was 1.42% compared to 1.34% for the six months ended June 30, 2025; ● Provision for credit losses was $3.9 million compared to provision of $3.9 million for the six months ended June 30, 2025; and ● Pre-tax, pre-provision net income was $56.6 million compared to $50.6 million for the same period in 2025.1 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. Acquisition On March 1, 2026, First Financial Corporation completed the acquisition of CedarStone Financial, Inc. As a result of the acquisition, loans acquired were $292 million, and deposits acquired were $313 million. Although we initially recognized a bargain purchase gain of $716 thousand in the first quarter 2026, measurement period adjustments recorded in the second quarter revised the preliminary purchase accounting. The cumulative resulting quarter-end bargain purchase gain was $33 thousand. Average Total Loans Average total loans for the second quarter of 2026 were $4.45 billion versus $3.88 billion for the comparable period in 2025, an increase of $575 million or 14.83%. 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 compared to $3.90 billion as of June 30, 2025, an increase of $571 million or 14.66%. On a linked quarter basis, total loans increased $44.0 million or 0.99% from $4.42 billion as of March 31, 2026. News Release
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Organic growth of $300 million year-over-year 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 pleased with our second quarter results. The quarter marked the eleventh consecutive quarter of loan growth, contributing to another quarter of record net income. Our net interest margin and profitability remain strong with a 4.33% net interest margin and a 1.48% return on assets.” Average Total Deposits Average total deposits for the quarter ended June 30, 2026, were $4.87 billion versus $4.65 billion as of June 30, 2025, an increase of $218 million, or 4.68%. On a linked quarter basis, average deposits increased $205 million or 4.40% from $4.66 billion as of March 31, 2026. Total Deposits Total deposits were $4.83 billion as of June 30, 2026, compared to $4.66 billion as of June 30, 2025. On a linked quarter basis, total deposits decreased $9.0 million or 0.19% from $4.84 billion as of March 31, 2026. 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 compared to $587.7 million on June 30, 2025. 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 $0.56 per share quarterly dividend in April and declared a $0.56 quarterly dividend, which was paid on July 15, 2026. Book Value Per Share Book Value per share was $56.83 as of June 30, 2026, compared to $49.59 as of June 30, 2025, an increase of $7.24 per share, or 14.60%. Tangible Book Value per share was $46.98 as of June 30, 2026, compared to $39.74 as of June 30, 2025, an increase of $7.24 per share or 18.22%. 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, compared to $52.7 million reported for the same period of 2025, an increase of $8.5 million, or 16.2%. Interest income increased $10.0 million and interest expense increased $1.5 million year over year. Net Interest Margin The net interest margin for the quarter ended June 30, 2026, was 4.33% compared to the 4.15% reported at June 30, 2025. Nonperforming Loans Nonperforming loans as of June 30, 2026, were $27.1 million versus $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, versus 0.25% as of June 30, 2025. On a linked quarter basis, nonperforming loans were $28.5 million, and the ratio of nonperforming loans to total loans and leases was 0.64% as of March 31, 2026. Credit Loss Provision The provision for credit losses for the three months ended June 30, 2026, was $1.3 million, compared to $2.0 million for the same period 2025.
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Net Charge-Offs In the second quarter of 2026 net charge-offs were $2.7 million compared to $1.7 million in the same period of 2025. Allowance for Credit Losses The Corporation’s 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. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased four basis points from 1.18% as of March 31, 2026. Non-Interest Income Non-interest income for the three months ended June 30, 2026 and 2025 was $10.6 million and $10.4 million, respectively. 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, versus 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 versus $4.2 million for the same period in 2025. The effective tax rate for 2026 was 18.89% compared to 18.58% for 2025. 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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 END OF PERIOD BALANCES Assets $ 6,178,309 $ 6,128,589 $ 5,602,969 $ 6,178,309 $ 5,602,969 Deposits $ 4,833,399 $ 4,842,386 $ 4,662,889 $ 4,833,399 $ 4,662,889 Loans, including net deferred loan costs $ 4,467,897 $ 4,423,921 $ 3,896,563 $ 4,467,897 $ 3,896,563Allowance for Credit Losses $ 50,938 $ 52,338 $ 47,087 $ 50,938 $ 47,087Total Equity $ 675,785 $ 655,288 $ 587,668 $ 675,785 $ 587,668Tangible Common Equity (a) $ 558,687 $ 536,659 $ 470,894 $ 558,687 $ 470,894 AVERAGE BALANCES Total Assets $ 6,126,618 $ 5,850,090 $ 5,529,225 $ 5,988,354 $ 5,518,996 Earning Assets $ 5,799,062 $ 5,523,970 $ 5,213,220 $ 5,661,516 $ 5,203,849 Investments $ 1,256,470 $ 1,263,714 $ 1,244,208 $ 1,260,092 $ 1,255,254 Loans $ 4,452,394 $ 4,160,366 $ 3,877,246 $ 4,306,380 $ 3,859,499 Total Deposits $ 4,868,890 $ 4,663,780 $ 4,651,051 $ 4,766,335 $ 4,650,967 Interest-Bearing Deposits $ 3,987,492 $ 3,718,070 $ 3,843,143 $ 3,852,781 $ 3,840,411Interest-Bearing Liabilities $ 554,935 $ 480,073 $ 269,338 $ 517,504 $ 265,256 Total Equity $ 663,602 $ 663,896 $ 576,288 $ 663,749 $ 570,515 INCOME STATEMENT DATA Net Interest Income $ 61,222 $ 56,933 $ 52,671 $ 118,155 $ 104,646Net Interest Income Fully Tax Equivalent (b) $ 62,739 $ 58,397 $ 54,091 $ 121,137 $ 107,464Provision for Credit Losses $ 1,300 $ 2,550 $ 1,950 $ 3,850 $ 3,900Non-interest Income $ 10,646 $ 11,217 $ 10,381 $ 21,863 $ 20,892Non-interest Expense $ 42,529 $ 40,879 $ 38,276 $ 83,408 $ 75,035Net Income $ 22,743 $ 19,804 $ 18,586 $ 42,547 $ 36,992 PER SHARE DATA Basic and Diluted Net Income Per Common Share $ 1.91 $ 1.67 $ 1.57 $ 3.58 $ 3.12Cash Dividends Declared Per Common Share $ 0.56 $ 0.56 $ 0.51 $ 1.12 $ 1.02Book Value Per Common Share $ 56.83 $ 55.10 $ 49.59 $ 56.83 $ 49.59Tangible Book Value Per Common Share (c) $ 45.96 $ 45.13 $ 38.78 $ 46.98 $ 39.74Basic Weighted Average Common Shares Outstanding 11,892 11,885 11,851 11,888 11,847 (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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Return on average assets 1.48 % 1.35 % 1.34 % 1.42 % 1.34 %Return on average common shareholder's equity 13.71 % 11.93 % 12.90 % 12.82 % 12.97 %Efficiency ratio 57.95 % 58.72 % 59.37 % 58.33 % 58.46 %Average equity to average assets 10.83 % 11.35 % 10.42 % 11.08 % 10.34 %Net interest margin (a) 4.33 % 4.23 % 4.15 % 4.28 % 4.13 %Net charge-offs to average loans and leases 0.24 % 0.15 % 0.18 % 0.20 % 0.18 %Credit loss reserve to loans and leases 1.14 % 1.18 % 1.21 % 1.14 % 1.21 %Credit loss reserve to nonperforming loans 188.21 % 183.89 % 480.72 % 188.21 % 480.72 %Nonperforming loans to loans and leases 0.61 % 0.64 % 0.25 % 0.61 % 0.25 %Tier 1 leverage 10.81 % 11.03 % 10.91 % 10.81 % 10.91 %Risk-based capital - Tier 1 12.78 % 12.50 % 12.86 % 12.78 % 12.86 % (a) Net interest margin is calculated on a tax equivalent basis. Asset Quality Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Accruing loans and leases past due 30-89 days $ 12,726 $ 19,882 $ 22,303 $ 12,726 $ 22,303Accruing loans and leases past due 90 days or more $ 3,030 $ 938 $ 1,917 $ 3,030 $ 1,917Nonaccrual loans and leases $ 24,035 $ 27,524 $ 7,878 $ 24,035 $ 7,878Other real estate owned $ 1,039 $ 184 $ 383 $ 1,039 $ 383Nonperforming loans and other real estate owned $ 28,104 $ 28,646 $ 10,178 $ 28,104 $ 10,178Total nonperforming assets $ 30,755 $ 31,288 $ 13,087 $ 30,755 $ 13,087Gross charge-offs $ 4,084 $ 2,945 $ 2,928 $ 7,029 $ 6,169Recoveries $ 1,384 $ 1,418 $ 1,230 $ 2,802 $ 2,624Net charge-offs/(recoveries) $ 2,700 $ 1,527 $ 1,698 $ 4,227 $ 3,545 Non-GAAP Reconciliations Three Months Ended June 30, 2026 2025 ($in thousands, except EPS)Income before Income Taxes $ 28,039 $ 22,826Provision for credit losses 1,300 1,950Provision for unfunded commitments — 100 Pre-tax, Pre-provision Income $ 29,339 $ 24,876 Non-GAAP Reconciliations Six Months Ended June 30, 2026 2025 ($ in thousands, except EPS)Income before Income Taxes $ 52,760 $ 46,603Provision for credit losses 3,850 3,900Provision for unfunded commitments — 100 Pre-tax, Pre-provision Income $ 56,610 $ 50,603
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CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data) June 30, December 31, 2026 2025 (unaudited) ASSETSCash and due from banks $ 96,633 $ 130,369Federal funds sold — 475Securities available-for-sale 1,168,202 1,149,526Loans: Commercial 2,424,325 2,375,344Residential 1,316,108 986,955 Consumer 721,551 688,135 4,461,984 4,050,434(Less) plus: Net deferred loan costs 5,913 4,869 Allowance for credit losses (50,938) (47,995) 4,416,959 4,007,308Restricted stock 23,475 18,536Accrued interest receivable 28,320 27,762Premises and equipment, net 88,313 78,582Bank-owned life insurance 137,146 131,286Goodwill 98,229 98,229Other intangible assets 18,869 16,234Other real estate owned 1,039 94 Other assets 101,124 97,725 TOTAL ASSETS $ 6,178,309 $ 5,756,126 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Non-interest-bearing $ 998,972 $ 916,473Interest-bearing: Certificates of deposit exceeding the FDIC insurance limits 182,378 135,605 Other interest-bearing deposits 3,652,049 3,499,033 4,833,399 4,551,111Short-term borrowings 310,091 292,468FHLB advances 291,461 188,208 Other liabilities 67,573 73,470 TOTAL LIABILITIES 5,502,524 5,105,257 Shareholders’ equity Common stock, $.125 stated value per share; Authorized shares-40,000,000 Issued shares-16,206,804 in 2026 and 16,190,157 in 2025 Outstanding shares-11,891,896 in 2026 and 11,880,759 in 2025 2,022 2,021Additional paid-in capital 147,844 147,442Retained earnings 771,022 741,793Accumulated other comprehensive income/(loss) (91,065) (86,681) Less: Treasury shares at cost-4,314,908 in 2026 and 4,309,398 in 2025 (154,038) (153,706) TOTAL SHAREHOLDERS’ EQUITY 675,785 650,869 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 6,178,309 $ 5,756,126
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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data) Three Months Ended Six Months EndedJune 30, June 30, 2026 2025 2026 2025 (unaudited) INTEREST INCOME:Loans, including related fees $ 73,986 $ 64,775 $ 141,507 $ 128,387Securities: Taxable 6,354 5,915 12,890 11,917Tax-exempt 3,014 2,622 5,878 5,226 Other 865 865 1,890 1,679 TOTAL INTEREST INCOME 84,219 74,177 162,165 147,209 INTEREST EXPENSE: Deposits 17,750 18,495 34,379 36,694Short-term borrowings 2,620 1,398 4,972 3,091 Other borrowings 2,627 1,613 4,659 2,778 TOTAL INTEREST EXPENSE 22,997 21,506 44,010 42,563 NET INTEREST INCOME 61,222 52,671 118,155 104,646 Provision for credit losses 1,300 1,950 3,850 3,900 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 59,922 50,721 114,305 100,746NON-INTEREST INCOME: Trust and financial services 1,503 1,490 2,994 2,883Service charges and fees on deposit accounts 8,217 7,554 15,599 15,139Other service charges and fees 345 256 719 572Securities gains/(losses), net (109) (3) (109) (3)Interchange income 214 180 400 394Loan servicing fees 333 326 659 492Gain on sales of mortgage loans 493 430 787 655Bargain purchase gain (reversal) (683) — 33 — Other 333 148 781 760 TOTAL NON-INTEREST INCOME 10,646 10,381 21,863 20,892 NON-INTEREST EXPENSE: Salaries and employee benefits 21,272 19,689 42,633 38,937Occupancy expense 2,714 2,472 5,672 5,148Equipment expense 5,297 4,587 10,637 9,092FDIC Expense 690 795 1,380 1,545 Other 12,556 10,733 23,086 20,313 TOTAL NON-INTEREST EXPENSE 42,529 38,276 83,408 75,035 INCOME BEFORE INCOME TAXES 28,039 22,826 52,760 46,603 Provision for income taxes 5,296 4,240 10,213 9,611 NET INCOME 22,743 18,586 42,547 36,992OTHER COMPREHENSIVE INCOME (LOSS) Change in unrealized gains/(losses) on securities, net of reclassifications and taxes 4,132 2,946 (4,542) 14,046 Change in funded status of post retirement benefits, net of taxes 79 2 158 5 COMPREHENSIVE INCOME (LOSS) $ 26,954 $ 21,534 $ 38,163 $ 51,043 PER SHARE DATA Basic and Diluted Earnings per Share $ 1.91 $ 1.57 $ 3.58 $ 3.12 Weighted average number of shares outstanding (in thousands) 11,892 11,851 11,888 11,847