First Financial (THFF) Stock Forecast & Price Target

First Financial Corp has demonstrated consistent growth in its loan portfolio for the seventh consecutive quarter, reflecting a robust +4% increase in loan balances, primarily driven by healthy commercial pipelines. The company has also achieved margin expansion for five consecutive quarters, supported by continued asset repricing and stable deposit costs, which is contributing positively to its overall earnings performance. Additionally, favorable credit trends further enhance the outlook for First Financial, positioning the company favorably in the financial services sector.

First Financial Corp has shown a notable decline in non-performing assets (NPAs), which decreased by 14% quarter-over-quarter; however, the total remains at $8.3 million, suggesting persistent concerns about asset quality. The company reported a lower provision for loan losses of $2.0 million, falling short of expectations, while non-performing charge-offs (NCOs) remained steady but indicate potential underlying risk. Additionally, the current interest rate environment raises significant risks related to increased credit costs, reduced loan demand, and margins, which collectively contribute to a pessimistic outlook for First Financial's future financial performance.