First Financial Indiana (THFF) AI Stock Analysis

• Market Cap: $730.88M
• Dividend Yield: 3.19%
• Average Volume (3M): 58.63K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.95
• Revenue Growth: 16.57%
• EPS Growth: 69.64%
• Country: US
• Employees: 937
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.81
• Shares Outstanding: 11,891,896
• 10 Day Avg. Volume: 83,366
• 30 Day Avg. Volume: 58,631
• PEG Ratio: 0.13
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 3.31
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 9.97
• 1Y Price Target: $68.00
• Price Target Upside: 10.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 7.16
• Revenue Forecast (FY): $284.80M

• Rating: 70 Outperform
• Price Target: $71.00 ▲(15.52% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by solid underlying financial performance (profitability and improved cash generation) tempered by higher leverage and a 2025 revenue decline. Valuation is a key positive (low P/E and solid dividend yield), while technicals are mixed with near-term weakness despite longer-term support. Corporate events add a modest positive boost via acquisition expansion and continued capital return signals.

Positive Factors

Improved cash generation

FCF growth and FCF covering net income in 2025 indicate stronger cash conversion versus prior years. Durable cash generation supports recurring dividends, buybacks and selective organic or inorganic growth while reducing near-term reliance on external funding for strategic initiatives.

Acquisition expands regional footprint

The CedarStone acquisition is a structural step to scale deposits, loans and branch presence in adjacent markets. Integration can produce cost synergies and cross-sell opportunities that strengthen market position and diversify local revenue across Indiana, Tennessee and nearby regions.

Rebounding profitability and ROE

Material improvement in ROE and margins reflects restored earnings power and operational leverage. Sustained higher profitability increases retained earnings and capital-generation capacity, supporting long-term dividend policy and capacity to absorb credit losses or fund measured growth.

Negative Factors

Rising leverage

A sharp rise in debt-to-equity materially reduces financial flexibility and raises funding and interest-rate sensitivity. Increased leverage heightens downside risk during stress periods, constrains capital actions and may limit ability to pursue larger acquisitions or absorb credit shocks without raising equity.

2025 revenue decline

A drop in revenue after multi-year growth suggests reduced loan or fee momentum and exposes earnings to reversals if sustained. Persistently weaker top line would impair growth prospects, limit margin expansion opportunities and pressure capital returns over a multi-quarter horizon.

Variable cash-flow quality

Uneven FCF and modest operating cash coverage create uncertainty in funding capacity for dividends, buybacks and acquisitions. If cash-flow volatility persists, the bank may lean more on debt or curtail returns, compounding balance-sheet leverage and constraining strategic flexibility.

First Financial Indiana Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

First Financial Indiana generates revenue through several key streams. The primary source of income comes from net interest income, derived from the difference between the interest earned on loans and the interest paid on deposits. Additionally, the company earns non-interest income through fees for services such as asset management, investment advisory, and insurance services. The bank also benefits from loan origination fees and transaction fees associated with various financial products. Strategic partnerships with other financial institutions and investment firms enhance its service offerings and revenue potential, while investment income from its securities portfolio contributes further to its earnings.

First Financial Indiana Financial Statement Overview

Summary

Solid profitability and improved 2025 cash generation support the score, but 2025 revenue declined and leverage rose sharply (debt-to-equity up to ~0.74), increasing balance-sheet risk and limiting flexibility.

Income Statement

Revenue has grown strongly over the 2020–2024 period, but 2025 revenue declined (-4.3%), signaling some near-term pressure. Profitability is solid: 2025 net margin improved to ~24% (vs. ~15% in 2024) and operating profitability also rebounded meaningfully versus 2024. Overall, earnings power looks healthy, but the latest year shows softer top-line momentum and some margin volatility versus the very strong 2021–2022 levels.

Balance Sheet

Balance sheet returns are decent with return on equity improving to ~12.2% in 2025 from ~8.6% in 2024. However, leverage increased materially: debt-to-equity rose to ~0.74 in 2025 (from ~0.39 in 2024 and ~0.17 in 2022). The company still has a meaningful equity base, but the sharp step-up in debt reduces financial flexibility and raises risk if operating conditions weaken.

Cash Flow

Cash generation improved in 2025: free cash flow grew ~19.8% and free cash flow covered net income at ~1.0x, indicating solid cash conversion in the latest year. That said, results have been uneven (free cash flow declined slightly in 2024), and the provided operating cash flow coverage metric remains relatively low despite improving in 2025, suggesting some variability in underlying cash-flow strength.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	326.44M	307.51M	271.10M	230.02M	194.28M
Gross Profit	253.59M	201.59M	202.67M	213.78M	183.02M
EBITDA	108.46M	67.10M	79.02M	93.87M	71.77M
Net Income	79.21M	47.27M	60.67M	71.11M	52.99M
Balance Sheet
Total Assets	5.76B	5.56B	4.85B	4.99B	5.18B
Cash, Cash Equivalents and Short-Term Investments	1.28B	820.49M	1.34B	1.55B	2.05B
Total Debt	480.68M	215.18M	175.80M	80.46M	115.53M
Total Liabilities	5.11B	5.01B	4.32B	4.51B	4.59B
Stockholders Equity	650.87M	549.04M	527.98M	475.29M	582.58M
Cash Flow
Free Cash Flow	85.28M	54.26M	79.55M	77.36M	51.23M
Operating Cash Flow	90.41M	60.37M	86.09M	78.79M	55.07M
Investing Cash Flow	-126.16M	-66.12M	-22.10M	-433.69M	-312.16M
Financing Cash Flow	72.59M	22.52M	-209.75M	-110.61M	287.65M

First Financial Indiana Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.46
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THFF, the sentiment is Neutral. The current price of 61.46 is below the 20-day moving average (MA) of 63.92, below the 50-day MA of 63.92, and above the 200-day MA of 57.59, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 31.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THFF.

First Financial Indiana Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSBC	76 Outperform	$786.43M	12.33	13.95%	2.18%	22.24%	18.63%
THFF	70 Outperform	$730.88M	8.35	13.02%	3.19%	16.57%	69.64%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ORRF	67 Neutral	$678.65M	6.86	14.41%	2.93%	47.65%	101.00%
NBBK	66 Neutral	$891.43M	26.28	6.55%	0.67%	14.04%	337.54%
CAC	64 Neutral	$777.72M	11.21	9.49%	3.66%	24.08%	9.83%
MPB	61 Neutral	$793.59M	12.77	7.31%	2.58%	12.09%	-15.97%

First Financial Indiana Corporate Events

First Financial Indiana Completes CedarStone Bank Acquisition Deal

On March 1, 2026, First Financial Corporation and its subsidiary First Financial Bank completed the previously announced acquisition of Tennessee-based CedarStone Financial, Inc. and CedarStone Bank, merging CedarStone into First Financial and combining CedarStone Bank into First Financial Bank as the surviving entity. First Financial paid $19.12 per CedarStone share in cash, valuing the deal at approximately $25 million, a move that broadens its regional banking presence and client base while reinforcing its expansion strategy in adjacent markets.

The all-cash transaction structure underscores First Financial’s capital strength and appetite for inorganic growth, signaling continued consolidation among community and regional banks in the southeastern and midwestern U.S. The integration of CedarStone’s operations into First Financial Bank is expected to streamline overlapping functions and deepen the Indiana lender’s penetration in Tennessee, with implications for employees, customers, and local competitors as branch networks and services are aligned under a single brand.

The most recent analyst rating on (THFF) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on First Financial Indiana stock, see the THFF Stock Forecast page.

First Financial Indiana highlights strength at Janney CEO Forum

First Financial Corporation said President and CEO Norman D. Lowery, CFO Rodger A. McHargue and Chief Credit Officer Steve Panagouleas will participate in the 2026 Janney CEO Forum on February 4–5, 2026, where they plan to share an investor presentation highlighting the bank’s financial condition and strategic profile. The materials prepared for the forum underscore the company’s solid capital ratios, consistent earnings and dividend growth, ongoing share repurchase activity, diversified loan book and relatively low levels of non-performing assets and net charge-offs, signaling a continued emphasis on balance-sheet strength and disciplined expansion that may reassure investors and other stakeholders about its performance and risk management going into 2026.

The most recent analyst rating on (THFF) stock is a Buy with a $74.00 price target. To see the full list of analyst forecasts on First Financial Indiana stock, see the THFF Stock Forecast page.

First Financial Indiana Board Declares Quarterly Cash Dividend

On December 18, 2025, First Financial Corporation announced that its board of directors declared a quarterly cash dividend of $0.56 per share, payable on January 15, 2026, to shareholders of record as of the close of business on January 2, 2026. The dividend declaration underscores the company’s ongoing capital return to shareholders and signals continued confidence in its financial performance and stability within its regional banking markets.

The most recent analyst rating on (THFF) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on First Financial Indiana stock, see the THFF Stock Forecast page.