TERRE HAUTE, IN—First Financial Corporation (NASDAQ:THFF), the Indiana-based financial services company, has completed its acquisition of SimplyBank, a Tennessee-chartered commercial bank, in a cash transaction valued at approximately $73.4 million. The acquisition, which was finalized on Monday, expands First Financial's regional footprint into Tennessee.
Under the terms of the agreement, which was initially announced on November 13, 2023, SimplyBank was merged with and into First Financial Bank, National Association, with First Financial Bank emerging as the surviving entity. Shareholders of SimplyBank received $718.38 per share, excluding any dissenting shares.
The completion of this acquisition marks a significant milestone for First Financial Corporation, which operates as a state commercial bank under the SIC code 6022. The company's fiscal year-end is December 31, with its principal executive offices located at One First Financial Plaza, Terre Haute, IN 47807.
First Financial has been a part of the financial landscape since its former name change from Terre Haute First Corp on August 8, 1985. This latest expansion through acquisition is expected to strengthen its market position and service offerings in the region.
The transaction details were outlined in a Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) on Wednesday, reflecting the company's commitment to transparency and regulatory compliance. The specifics of the merger agreement, which was attached as an exhibit to a previous Form 8-K filing, provides the legal framework for the acquisition process.
Investors and interested parties can refer to the original Form 8-K filed on November 13, 2023, for the full text of the merger agreement. This document, which is incorporated by reference, includes the complete terms and conditions of the agreement.
First Financial Corporation's stock is traded on The NASDAQ Stock Market LLC under the ticker symbol THFF. The company's latest strategic move is expected to be of interest to shareholders and the financial community, as it may influence the company's future growth trajectory and financial performance.
The information in this article is based on a press release statement.
In other recent news, First Financial Corp. has experienced a decrease in its share target from $45.00 to $43.00, as announced by Keefe, Bruyette & Woods. This adjustment follows the company's reported operating earnings of $0.95 per share, which fell short of analysts' expectations.
The company's performance was affected by a decline in net interest income, lower fees, and expenses that matched predictions. Despite a modest 3% loan growth and steady credit trends, these factors were not enough to offset a reduced provision for loan losses and softer pre-provision net revenue.
Moreover, the anticipated closure of First Financial's deal to acquire SimplyBank has been postponed, with the expected benefits to earnings per share now delayed. Analysts at Keefe, Bruyette & Woods have expressed concerns over a lower starting point for the net interest margin, which is expected to negatively impact the net interest income outlook for First Financial.
Consequently, the firm has lowered its earnings estimates for First Financial for the years 2024 and 2025 by 10% and 3% respectively, while maintaining a Market Perform rating, indicating a neutral stance on the stock's expected performance. These are among the recent developments impacting the company.
InvestingPro Insights
As First Financial Corporation (NASDAQ:THFF) solidifies its presence in Tennessee through the acquisition of SimplyBank, the company's financial metrics and performance indicators provide a clearer picture of its current market position.
According to recent data from InvestingPro, First Financial boasts a market capitalization of approximately $432.63 million and an attractive price-to-earnings (P/E) ratio of 7.85, which slightly adjusted to 7.76 as of the last twelve months as of Q1 2024. This suggests a reasonable valuation compared to earnings, potentially signaling a solid investment opportunity.
InvestingPro Tips indicate that First Financial has demonstrated a commitment to shareholder returns, having raised its dividend for 5 consecutive years and maintaining dividend payments for an impressive 42 years.
Despite a challenging financial landscape with a revenue decline of -6.75% over the last twelve months as of Q1 2024, the company's long-standing dividend history may offer some reassurance to income-focused investors. Moreover, analysts predict that the company will remain profitable this year, which could be a positive sign for those considering the stock's future prospects.
For investors seeking more comprehensive analysis and additional InvestingPro Tips on First Financial Corporation, they can explore further insights at https://www.investing.com/pro/THFF. There are 6 additional tips available, offering a deeper understanding of the company's financial health and potential. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enhancing your investment research with premium features.
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