First Financial Corporation (NASDAQ: THFF) reported record first‑quarter 2026 results, delivering a net interest income of $56.9 million—up 9.5% from $52.0 million a year earlier—and a net income of $19.8 million, or $1.67 per share. The basic earnings per share from continuing operations matched the diluted figure, underscoring consistent profitability across the bank’s balance sheet.
The quarter also marked the completion of the March 1 acquisition of CedarStone Financial, Inc. The all‑cash deal added $292 million in loans and $313 million in deposits to First Financial’s book, and generated a bargain purchase gain of $716 thousand. The transaction, valued at roughly $25 million, extended the bank’s footprint into Tennessee and contributed to a 14.8% rise in total loans to $4.42 billion and a 6.4% increase in total deposits to $4.84 billion.
Net interest margin expanded to 4.23% from 4.11% a year earlier, reflecting disciplined asset‑liability management and the higher mix of interest‑earning assets. Non‑performing loans totaled $28.5 million, a ratio of 0.64% of total loans—up from 0.26% a year earlier—highlighting a modest deterioration in credit quality that management is monitoring closely.
Average deposits grew 0.28% to $4.66 billion, supporting the bank’s liquidity position while the modest deposit growth reflects the broader regional banking environment. Management noted that the CedarStone acquisition was a strategic move to capture growth in the Nashville market, with CEO Norman D. Lowery stating, "This acquisition is exciting for our company. CedarStone provides us with an opportunity to further expand our franchise in the attractive Nashville market. We look forward to continuing CedarStone's commitment to creating meaningful customer relationships and serving the community."
First Financial guided for the next quarter to earnings per share of $1.69 and revenue of $69.5 million, while full‑year guidance was raised to $7.05 EPS and $281.2 million in revenue. The bank also declared a quarterly dividend of $0.56 per share, payable on April 15, 2026. These forward‑looking figures signal management’s confidence in sustaining margin expansion and loan growth while navigating the modest rise in non‑performing loans.
The results demonstrate First Financial’s ability to grow its loan book and deposit base, achieve record net interest income, and maintain strong profitability in a rising‑rate environment, even as it addresses a slight uptick in credit risk. The acquisition’s integration and the bank’s disciplined asset‑liability management position it well for continued performance in the regional banking sector.
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