FIRST FINANCIAL CORP IN
Q4 2024 Form 13-F

Description and Activity

First Financial Corporation is a financial holding company headquartered in Terre Haute, Indiana, operating through its subsidiary, First Financial Bank, N.A. The bank maintains 36 branches across west-central Indiana, east-central Illinois, western Kentucky, and central Tennessee, providing a range of financial services. These services include commercial, mortgage, and consumer lending, as well as trust account services and depositor services.

The company's lending portfolio is categorized into three segments: commercial, residential, and consumer. Commercial loans, secured by assets such as buildings, equipment, and inventory, are typically underwritten based on the borrower's cash flows and the collateral's value. Residential loans are secured by 1-4 family residences and are underwritten based on property value, debt-to-income ratio, and borrower credit history. Consumer loans, secured by personal property like homes, cars, boats, and recreational vehicles, are evaluated based on the individual's credit profile and debt repayment capacity.

First Financial Corporation is regulated by multiple government agencies, including the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC). It must comply with the Dodd-Frank Act, which mandates maintaining specific capital ratios. As of December 31, 2023, the company reported robust regulatory capital ratios: 14.76% CET1 to risk-weighted assets, 14.76% Tier 1 capital to risk-weighted assets, 15.80% Total capital to risk-weighted assets, and a 12.14% leverage ratio. The bank's corresponding ratios were also strong, indicating a well-capitalized status. Continue reading...