First Financial Corporation reported a net income of $47.3 million, or $4.00 per share, for the fiscal year ending December 31, 2024, a decrease from $60.7 million, or $5.08 per share, in 2023. The decline in profitability was primarily attributed to a significant increase in the provision for credit losses, which rose to $16.2 million from $7.3 million in the previous year, largely due to the acquisition of SimplyBank. The corporation's total assets increased by 14.6% to $5.56 billion, driven by a substantial rise in loans, which grew to $3.79 billion from $3.16 billion in 2023.
In terms of operational developments, First Financial Corporation completed its acquisition of SimplyBank on July 1, 2024, for approximately $73.4 million. This strategic move is expected to enhance profitability through geographic expansion and economies of scale. The acquisition added $470.7 million in loans and $700.6 million in total assets to the corporation's balance sheet. The integration of SimplyBank's operations is ongoing, with management focused on realizing anticipated synergies and cost savings.
The corporation's customer base also expanded, with total deposits increasing to $4.72 billion, up from $4.09 billion in 2023. This growth was bolstered by the acquisition, which contributed significantly to the deposit base. The number of full-time equivalent employees rose to 937, reflecting the integration of SimplyBank's workforce. Additionally, the corporation's net interest income increased to $175 million, up from $167.3 million in 2023, despite a slight decrease in the net interest margin from 3.78% to 3.71%.
Looking ahead, First Financial Corporation anticipates continued challenges in the economic environment, including potential impacts from inflation and interest rate fluctuations. The management remains cautious about credit quality, particularly in light of the increased provision for credit losses. The corporation's capital ratios remain strong, with a common equity tier 1 capital ratio of 12.43% as of December 31, 2024, exceeding regulatory requirements. The outlook for 2025 includes a focus on integrating SimplyBank and managing the associated risks while maintaining a commitment to shareholder returns through regular dividends.
About FIRST FINANCIAL CORP /IN/
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