First Financial (THFF) Stock Forecast & Price Target

First Financial Corp has demonstrated robust loan growth, achieving a 4% increase for the seventh consecutive quarter, driven by a strong commercial pipeline. Additionally, the company has experienced margin expansion for five consecutive quarters, attributed to ongoing asset repricing and stable deposit costs. These positive financial trends indicate a solid earnings performance supported by favorable credit conditions, reinforcing a positive outlook for the company's stock.

First Financial Corp's negative outlook is influenced by several fundamental factors, including a lower-than-expected provision for credit losses at $2.0 million, which fell short of the $3.5 million estimate. Additionally, while non-performing assets (NPAs) declined by 14% quarter-over-quarter, the company still faces significant risks from potential increases in credit costs and reduced loan demand, particularly in the current interest rate environment. Furthermore, the decline in the loan loss reserve (LLR) to 1.21% indicates a tightening of financial buffers against potential defaults, signaling increased vulnerability to economic shifts.