NasdaqGS:THFF

Stock Analysis Report

Executive Summary

First Financial Corporation, through its subsidiaries, provides various financial services.

Rewards

Trading at 35.1% below its fair value

Earnings are forecast to grow 5.91% per year

Earnings have grown 6.1% per year over the past 5 years

Pays a high and reliable dividend of 2.36%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Atlantic Union Bankshares

NasdaqGS:AUB

Share Price & News

How has First Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: THFF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

THFF

-0.08%

US Banks

2.0%

US Market


1 Year Return

4.8%

THFF

15.5%

US Banks

23.6%

US Market

Return vs Industry: THFF underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: THFF underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

THFFIndustryMarket
7 Day1.3%-0.08%2.0%
30 Day-4.3%-1.6%3.9%
90 Day3.3%9.2%12.0%
1 Year7.4%4.8%18.9%15.5%26.2%23.6%
3 Year0.3%-9.5%34.6%25.1%53.2%43.3%
5 Year52.8%30.9%86.1%65.2%75.7%56.3%

Price Volatility Vs. Market

How volatile is First Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Financial undervalued compared to its fair value and its price relative to the market?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THFF ($44.1) is trading below our estimate of fair value ($67.95)

Significantly Below Fair Value: THFF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: THFF is good value based on its PE Ratio (12.1x) compared to the Banks industry average (12.8x).

PE vs Market: THFF is good value based on its PE Ratio (12.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: THFF is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: THFF is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THFF's forecast earnings growth (5.9% per year) is above the savings rate (1.7%).

Earnings vs Market: THFF's earnings (5.9% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: THFF's earnings are forecast to grow, but not significantly.

Revenue vs Market: THFF's revenue (8.2% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: THFF's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THFF's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has First Financial performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THFF has high quality earnings.

Growing Profit Margin: THFF's current net profit margins (29.7%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: THFF's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: THFF's earnings growth over the past year (19.5%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: THFF earnings growth over the past year (19.5%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: THFF's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: THFF has a low level of unsold assets or inventory.

Debt Coverage by Assets: THFF's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: THFF's level of assets compared to its equity is low.

Allowance for Bad Loans: THFF has a sufficient allowance for bad loans.

Low Risk Liabilities: THFF's liabilities are made up of primarily low risk sources of funding.

Loan Level: THFF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: THFF's loans are broadly funded by customer deposits.

Level of Bad Loans: THFF has an appropriate level of bad loans (0.54%)


Next Steps

Dividend

What is First Financial's current dividend yield, its reliability and sustainability?

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: THFF's dividend (2.36%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: THFF's dividend (2.36%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: THFF's dividends per share have been stable in the past 10 years.

Growing Dividend: THFF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), THFF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: THFF's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

What is the CEO of First Financial's salary, the management and board of directors tenure and is there insider trading?

9.8yrs

Average management tenure


CEO

Norm Lowery (73yo)

16yrs

Tenure

US$1,923,279

Compensation

Mr. Norman L. Lowery, also known as Norm, has been the Vice Chairman, Chief Executive Officer and President of First Financial Corporation (“Corporation”) since 1996, 2004 and 2013 respectively. Mr. Lowery ...


CEO Compensation Analysis

Compensation vs Market: Norm's total compensation ($USD1.92M) is about average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Norm's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.8yrs

Average Tenure

58yo

Average Age

Experienced Management: THFF's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

16.0yrs

Average Tenure

68yo

Average Age

Experienced Board: THFF's board of directors are seasoned and experienced ( 16 years average tenure).


Insider Trading

Insider Buying: THFF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$38,88817 Dec 19
Thomas Martin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares850
Max PriceUS$45.75
BuyUS$8,66203 Jun 19
William Krieble
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares228
Max PriceUS$38.10
BuyUS$15,39230 May 19
William Brighton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400
Max PriceUS$38.48
BuyUS$23,39613 Feb 19
Thomas Dinkel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares550
Max PriceUS$42.54

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Management Team

  • Norm Lowery (73yo)

    Vice Chairman

    • Tenure: 16yrs
    • Compensation: US$1.92m
  • Rodger McHargue (57yo)

    Senior VP

    • Tenure: 9.8yrs
    • Compensation: US$627.40k
  • Norman Lowery (51yo)

    Senior VP & COO

    • Tenure: 9.8yrs
    • Compensation: US$650.01k
  • Karen Stinson-Milienu (58yo)

    Chief Branch Banking Officer

    • Tenure: 9yrs
    • Compensation: US$413.97k
  • Steve Holliday (58yo)

    Senior VP & Chief Credit Officer

    • Tenure: 8yrs
    • Compensation: US$459.83k
  • Terry Tevlin (65yo)

    Vice President of Marketing


    Board Members

    • Norm Lowery (73yo)

      Vice Chairman

      • Tenure: 16yrs
      • Compensation: US$1.92m
    • Greg Gibson (56yo)

      Independent Director

      • Tenure: 26yrs
      • Compensation: US$77.75k
    • B. Cox (73yo)

      Independent Chairman of the Board

      • Tenure: 7yrs
      • Compensation: US$84.75k
    • Thomas Dinkel (68yo)

      Independent Director

      • Tenure: 31yrs
      • Compensation: US$80.50k
    • Tony George (59yo)

      Independent Director

      • Tenure: 33yrs
      • Compensation: US$87.25k
    • William Voges (64yo)

      Independent Director

      • Tenure: 11.3yrs
      • Compensation: US$82.25k
    • William Brighton (65yo)

      Independent Director

      • Tenure: 16yrs
      • Compensation: US$82.75k
    • Ronald Rich (80yo)

      Lead Independent Director

      • Compensation: US$84.25k
    • William Krieble (71yo)

      Independent Director

      • Tenure: 10.8yrs
      • Compensation: US$83.75k
    • Thomas Martin

      Independent Director

      • Tenure: 0.3yrs

    Company Information

    First Financial Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: First Financial Corporation
    • Ticker: THFF
    • Exchange: NasdaqGS
    • Founded: 1984
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$605.856m
    • Shares outstanding: 13.71m
    • Website: https://www.first-online.com

    Number of Employees


    Location

    • First Financial Corporation
    • One First Financial Plaza
    • Terre Haute
    • Indiana
    • 47807
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    THFFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1991

    Biography

    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 66 branches in west-central Indiana and east-central Illinois. It also rents an office building. First Financial Corporation was founded in 1984 and is headquartered in Terre Haute, Indiana. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:34
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.