First Financial (THFF) Stock Forecast & Price Target

First Financial Corp has demonstrated consistent performance with a seventh consecutive quarter of loan growth, marking an increase of 4% on a last quarter annualized basis, which reflects the company’s robust commercial pipelines. Margin expansion has also been noteworthy, occurring for five consecutive quarters, fueled by continued asset repricing while maintaining stable deposit costs. Additionally, the company's earnings have been positively impacted by favorable credit trends, enhancing its overall financial outlook.

First Financial Corp has experienced a decrease in non-performing assets (NPAs) by 14% quarter-over-quarter, indicating some improvement in asset quality; however, this figure remains a concern as tangible declines in credit quality impacts profitability. Additionally, the company recorded a provision of $2.0 million, which fell short of estimates, raising questions about potential underestimation of future credit costs. Persistent risks such as an unexpected rise in credit costs, reduced loan demand, and margin pressure—amplified by the current interest rate environment—further contribute to a negative outlook on the stock.