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First Financial Indiana (THFF) AI Stock Analysis

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THFF

First Financial Indiana

(NASDAQ:THFF)

Select Model
Rating:74Outperform
Price Target:$89.00â–²(16.20% Upside)
Action:upgraded
Date:11/05/26

Overall score is driven primarily by solid financial performance (improving profitability and strong cash conversion) tempered by rising leverage on the balance sheet. Technicals are supportive with the price above major moving averages and positive MACD, while valuation is attractive with a low P/E and solid dividend yield; corporate events add a modest positive tilt due to the merger and dividend continuity.

Positive Factors
Strong cash generationFree cash flow nearly matching net income indicates that reported profitability is translating into tangible cash generation. This supports internal funding for lending growth, technology, dividends, and other strategic priorities while reducing reliance on external financing.
Negative Factors
Rising balance-sheet leverageThe sustained increase in debt relative to equity represents a less conservative balance-sheet posture than in prior years. Greater leverage can reduce financial flexibility, increase sensitivity to funding conditions, and constrain management’s ability to absorb unexpected credit or earnings pressure.

First Financial Indiana (THFF) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%THFF+39.03%SPY+10.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$910.80M
Dividend Yield
2.92%
Average Volume (3M)
122.67K
Price to Earnings (P/E)
9.9
Beta (1Y)
0.81
Revenue Growth
9.80%
EPS Growth
23.15%
Country
US
Employees
946
Sector
Financial
Sector Strength
68
Industry
Banks - Regional

First Financial Indiana Business Overview & Revenue Model

Company Description

First Financial Corporation operates as the bank holding company for First Financial Bank N.A. that provides various financial services for individuals and businesses in west-central Indiana, east-central Illinois, western Kentucky, central and easte...

How the Company Makes Money

THFF makes money primarily through traditional banking income streams generated by its bank subsidiary. The largest revenue source is typically net interest income: the bank earns interest and fees on interest-earning assets (mainly commercial loans,...

First Financial Indiana Financial Statement Overview

Summary

Profitability and cash conversion are solid: net margin improved to ~26.8% TTM and free cash flow is strong (~$105M TTM) with FCF-to-net income ~0.99. The key offset is balance-sheet risk, with debt-to-equity rising to ~0.71 TTM (materially higher than prior years), and some earnings/margin volatility across the cycle.

Income Statement

78Positive

Balance Sheet

64Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue341.72M326.44M307.51M271.10M230.02M194.28M
Gross Profit271.36M253.59M201.59M202.67M213.78M183.02M
EBITDA134.85M111.58M67.10M79.02M93.87M71.77M
Net Income91.44M79.21M47.27M60.67M71.11M52.99M
Balance Sheet
Total Assets6.06B5.76B5.56B4.85B4.99B5.18B
Cash, Cash Equivalents and Short-Term Investments1.20B825.32M820.49M1.34B1.55B2.05B
Total Debt465.82M480.68M215.18M175.80M80.46M115.53M
Total Liabilities5.40B5.11B5.01B4.32B4.51B4.59B
Stockholders Equity660.45M650.87M549.04M527.98M475.29M582.58M
Cash Flow
Free Cash Flow105.30M86.42M54.26M79.55M77.36M51.23M
Operating Cash Flow106.49M90.41M60.37M86.09M78.79M55.07M
Investing Cash Flow-90.15M-126.16M-66.12M-22.10M-433.69M-312.16M
Financing Cash Flow-11.29M72.59M22.52M-209.75M-110.61M287.65M

First Financial Indiana Technical Analysis

Technical Analysis SentimentPositive
Last Price76.59

Price Trends

50DMA75.89Positive
100DMA76.66Negative
200DMA70.70Positive

Market Momentum

MACD0.73Negative
RSI51.52Neutral
STOCH51.32Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THFF, the sentiment is Positive. The current price of 76.59 is above the 20-day moving average (MA) of 75.71, above the 50-day MA of 75.89, and above the 200-day MA of 70.70, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 51.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THFF.

First Financial Indiana Risk Analysis

First Financial Indiana disclosed 46 risk factors in its most recent earnings report. First Financial Indiana reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

First Financial Indiana Peers Comparison

Overall Rating

UnderperformOutperform
Sector (68)

Financial Indicators

THFF against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
SRCESRCE85Outperform$2.15B11.9613.75%1.98%3.90%20.76%
LKFNLKFN84Outperform$1.55B13.6415.07%3.39%2.03%18.45%
GABCGABC83Outperform$1.91B13.0312.39%2.41%12.24%35.76%
HBNCHBNC80Outperform$1.10B9.9815.17%3.07%423.76%―
OSBCOSBC77Outperform$1.28B11.2712.41%1.19%22.41%40.35%
THFFTHFF74Outperform$942.08M9.9513.84%2.92%9.80%23.15%
Sector *68Neutral$18.00B11.429.92%3.81%9.73%1.22%

* Financial Sector Average

Performance Comparison

0%20%40%THFFSRCEGABCHBNCLKFNOSBCDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
THFF and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
THFFFirst Financial Corporation Indiana76.5922.3041.07%
SRCE1st Source Corporation87.3527.8846.88%
GABCGerman American Bancorp50.5611.9731.02%
HBNCHorizon Bancorp20.855.4135.00%
LKFNLakeland Financial61.375.459.75%
OSBCOld Second24.356.2734.65%

First Financial Indiana Corporate Events

Business Operations and StrategyExecutive/Board Changes

First Financial Indiana Announces CFO Retirement and Successor

Positive
Sep 17, 2026

On September 17, 2026, First Financial Corporation announced that longtime Chief Financial Officer and Secretary/Treasurer Rodger A. McHargue will retire on December 31, 2026, concluding a tenure as CFO that began in 2010. During his time in the role...

Business Operations and StrategyDividends

First Financial Indiana Declares Quarterly Cash Dividend

Positive
Sep 17, 2026

On September 17, 2026, First Financial Corporation announced that its board of directors had declared a quarterly cash dividend of $0.56 per share. The dividend will be paid on October 15, 2026, to shareholders of record as of the close of business o...

Business Operations and StrategyFinancial Disclosures

First Financial Indiana Highlights Strength at Investor Conferences

Positive
Sep 4, 2026

On September 9, 2026, senior executives of First Financial Corporation, including CEO Norman D. Lowery, CFO Rodger A. McHargue and other finance and credit leaders, participated in Raymond James’ U.S. Bank and Banking on Tech conferences, prese...

Business Operations and StrategyM&A Transactions

First Financial Indiana Announces Merger with First Illinois

Positive
Aug 27, 2026

On August 27, 2026, First Financial Corporation and First Illinois Corporation announced a definitive merger agreement under which First Illinois will be folded into First Financial in a stock-and-cash deal valued at about $111.3 million. First Illin...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 05, 2026