NasdaqGS:THFF

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

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

5.7%

THFF

3.9%

US Banks

-0.4%

US Market


1 Year Return

-18.1%

THFF

-26.3%

US Banks

18.3%

US Market

Return vs Industry: THFF exceeded the US Banks industry which returned -26.3% over the past year.

Return vs Market: THFF underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

THFFIndustryMarket
7 Day5.7%3.9%-0.4%
30 Day15.9%12.0%6.6%
90 Day4.0%5.4%8.6%
1 Year-15.9%-18.1%-23.6%-26.3%21.0%18.3%
3 Year-19.5%-27.7%-16.3%-23.3%42.1%32.7%
5 Year20.8%3.4%21.9%6.8%85.6%64.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THFF ($35.45) is trading below our estimate of fair value ($71.9)

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 (9.5x) compared to the US Banks industry average (10.2x).

PE vs Market: THFF is good value based on its PE Ratio (9.5x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: THFF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: THFF's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

-12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THFF's earnings are forecast to decline over the next 3 years (-12.5% per year).

Earnings vs Market: THFF's earnings are forecast to decline over the next 3 years (-12.5% per year).

High Growth Earnings: THFF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: THFF's revenue (0.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: THFF's revenue (0.6% 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 (6.2%).


Next Steps

Past Performance

How has First Financial performed over the past 5 years?

9.5%

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%) are lower than last year (30.2%).


Past Earnings Growth Analysis

Earnings Trend: THFF's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: THFF's earnings growth over the past year (13.7%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: THFF earnings growth over the past year (13.7%) exceeded the Banks industry -3.2%.


Return on Equity

High ROE: THFF's Return on Equity (8.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: THFF's Assets to Equity ratio (7.4x) is low.

Allowance for Bad Loans: THFF has a sufficient allowance for bad loans (101%).

Low Risk Liabilities: 94% of THFF's liabilities are made up of primarily low risk sources of funding.

Loan Level: THFF has an appropriate level of Loans to Assets ratio (63%).

Low Risk Deposits: THFF's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: THFF has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

2.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: THFF's dividend (2.93%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: THFF's dividend (2.93%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 (27.9%), 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 (38% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.6yrs

Average management tenure


CEO

Norm Lowery (74 yo)

16.75yrs

Tenure

US$2,959,176

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Norm's total compensation ($USD2.96M) is above average for companies of similar size in the US market ($USD1.93M).

Compensation vs Earnings: Norm's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Norman Lowery
Chairman16.75yrsUS$2.96m0.76%
$ 3.7m
Rodger McHargue
Senior VP10.58yrsUS$1.09m0.16%
$ 767.3k
Norman Lowery
Chief Operations Officer10.58yrsUS$1.02m0.27%
$ 1.3m
Steven Holliday
Senior VP & Chief Credit Officer8.75yrsUS$479.23k0.11%
$ 544.0k
Karen Stinson-Milienu
Chief Branch Banking Officer9.75yrsUS$763.32k0.076%
$ 367.2k
Terry Tevlin
Vice President of Marketingno datano datano data

10.6yrs

Average Tenure

59yo

Average Age

Experienced Management: THFF's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norman Lowery
Chairman16.75yrsUS$2.96m0.76%
$ 3.7m
Gregory Gibson
Independent Director26.75yrsUS$79.00k0.76%
$ 3.7m
Thomas Dinkel
Independent Director31.75yrsUS$79.50k0.13%
$ 642.3k
William Voges
Independent Director12yrsUS$81.50k0.16%
$ 758.7k
William Brighton
Independent Director16.75yrsUS$80.00k0.13%
$ 638.1k
Ronald Rich
Lead Independent Directorno dataUS$83.00k0.030%
$ 143.6k
William Krieble
Independent Director11.5yrsUS$80.50k0.039%
$ 187.4k
Tina Maher
Independent Director1yrUS$15.25k0.16%
$ 762.2k
Paul Pierson
Independent Director1yrUS$16.25k0.044%
$ 212.7k
Thomas Martin
Independent Director1yrUS$15.25k0.036%
$ 176.9k

11.8yrs

Average Tenure

69yo

Average Age

Experienced Board: THFF's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$486.180m
  • 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 compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:00
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.