First Financial (THFF) Stock Forecast & Price Target

First Financial Corp has demonstrated consistent loan growth for seven consecutive quarters, with an increase of 4% on a last quarter annualized basis, indicating robust demand within its commercial pipelines. The company's margin has expanded for five consecutive quarters, attributed to favorable asset repricing and stable deposit costs, contributing positively to its earnings. Additionally, the trends in credit quality remain favorable, further supporting a positive outlook for First Financial's financial performance.

First Financial Corp has indicated a decline in non-performing assets (NPAs) by 14% quarter-over-quarter to $8.3 million, representing a decrease to 21 basis points of loans/OREO, down from 25 basis points in the previous quarter. Despite this improvement, the company recorded a lower provision for loan losses of $2.0 million compared to the $3.5 million estimate, while net charge-offs (NCOs) of 18 basis points reflect a slight deterioration relative to prior metrics. Furthermore, ongoing risks such as potential increases in credit costs, reduced loan demand, and margin pressure in the current interest rate environment contribute to a negative outlook for the company’s earnings and overall financial performance.