First Financial Corp /In/ (NASDAQ: THFF)

First Financial Corp, or THFF, operates as a financial holding company in the banking industry. Established in 1984 and headquartered in Terre Haute, Indiana, THFF offers a range of financial services, including commercial, mortgage, and consumer lending, as well as deposit services.

THFF's primary business activities revolve around its lending services. The company's lending portfolio includes commercial and residential mortgages, as well as consumer loans. These loans are offered to individuals and businesses through the company's seven full-service banking branches and six loan production offices.

The company generates revenue through its lending activities. In the commercial loan segment, THFF offers loans to expand businesses, finance asset purchases, and provide working capital. The underlying risk in this segment is primarily a function of the borrower's cash flows and the value of the underlying collateral. THFF has established underwriting standards and guidelines for all commercial loan types and maintains a geographically diverse commercial real estate portfolio.

In the residential mortgage segment, THFF primarily offers owner-occupied mortgages, which are generally secured by 1-4 family residences. The company establishes a maximum loan-to-value ratio and requires private mortgage insurance if the ratio is exceeded. THFF sells substantially all of its long-term fixed mortgages to secondary market purchasers and originates some mortgages that are maintained in the bank's loan portfolio.

The consumer loan portfolio primarily consists of home equity loans and lines, secured loans, cash/CD secured loans, and unsecured loans. The underlying value of collateral-dependent loans may vary based on economic conditions, such as fluctuations in home prices and unemployment levels. Underwriting of consumer loans is based on the individual credit profile and analysis of the debt repayment capacity for each borrower.

THFF operates in a competitive environment, facing competition from other financial institutions, including commercial banks, mutual savings banks, and consumer finance companies. The company operates in a highly regulated environment and is subject to supervision and regulation by several governmental regulatory agencies, including the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.

As of December 31, 2023, THFF's CET1 ratio was 14.76%, its Tier 1 capital ratio was 14.76%, and its total capital ratio was 15.80%. The company's leverage ratio was 12.14%. THFF's banking subsidiary, First Financial Bank, N.A., had a CET1 ratio of 13.84%, a Tier 1 capital ratio of 13.84%, a total capital ratio of 14.89%, and a leverage ratio of 10.73%.

In terms of its product portfolio, THFF offers a variety of financial services under the brands of First Financial Corp and First Financial Bank, N.A. These include commercial loans, residential mortgages, and consumer loans, among others. The company's diverse product portfolio and strong financial position make it a well-capitalized and well-managed institution in the banking industry.

References:
First Financial Corp. (2023). Annual Report 2023. Retrieved from https://www.firstfinancialcorp.com/content/dam/first-financial/documents/investor-relations/annual-reports/2023-annual-report.pdf