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TERRE HAUTE, IN - First Financial Corporation (NASDAQ:THFF) has announced the renewal of President and Chief Executive Officer Norman D. Lowery's employment agreement, effective as of July 1, 2024. The new contract, disclosed in a recent SEC 8-K filing, extends Lowery's tenure for an initial term of 24 months with the possibility of a one-year extension by the Compensation Committee.
Under the new agreement, Lowery will receive an annual base salary of $650,000, subject to potential increases by the boards of directors. Additionally, he will participate in bonus and fringe benefit plans available to other executive officers or employees of the Corporation and its wholly-owned subsidiary, First Financial Bank (the "Bank").
The agreement specifies the conditions under which Lowery may receive severance benefits. If his employment is terminated without just cause or if he resigns for good reason not associated with a change in control of the company, Lowery is entitled to his base salary and bonuses through the end of the current term, along with cash reimbursements for benefits. In the event of termination within 12 months following a change in control, a more substantial compensation is outlined, potentially up to 2.99 times his annual compensation package.
The contract also addresses compliance with Internal Revenue Code Section 280G, ensuring that any payments to Lowery do not result in excess parachute payments. Furthermore, it includes standard confidentiality and non-solicit clauses, as well as a non-compete provision effective during his employment and for one year post-termination, restricting competition within a specified radius of Terre Haute.
This executive agreement reflects the company's commitment to stable leadership and the terms are designed to align the interests of the CEO with those of the company and its shareholders. The detailed terms of the agreement are available in the full text of the document, which is filed as Exhibit 10.1 to the Form 8-K. This news is based on the press release statement and aims to provide shareholders with the essential facts regarding the company's executive leadership arrangements.
InvestingPro Insights
Amidst the renewal of CEO Norman D. Lowery's contract at First Financial Corporation, it's worth noting the company's financial health and market performance to get a fuller picture of its current standing. First Financial boasts a market capitalization of $479.53 million, reflecting its value in the eyes of investors. The company's price-to-earnings (P/E) ratio stands at a modest 9.46, with a slightly adjusted P/E ratio of 9.37 over the last twelve months as of Q2 2024, suggesting that the stock may be reasonably valued relative to its earnings.
Despite a revenue decline of 9.29% over the last twelve months as of Q2 2024, First Financial has maintained a robust operating income margin of 32.6%, indicating efficient management of its operations. Investors might also find the dividend yield of 4.45% particularly compelling, especially given that the company has maintained dividend payments for 42 consecutive years—a testament to its commitment to shareholder returns. However, it's important to note that the company's dividend growth has slightly decreased by 1.1% over the same period.
For those considering an investment, First Financial has experienced a strong return over the last month, with a 13.59% increase in its stock price. This is particularly noteworthy given the recent volatility, with the stock taking a significant hit over the last week, resulting in a -10.01% return. For a more comprehensive analysis and additional InvestingPro Tips, including the prediction that the company will remain profitable this year, interested parties can visit InvestingPro for further insights. There are 8 additional InvestingPro Tips available for First Financial Corporation, which can provide investors with a deeper understanding of the stock's potential.
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