first financial corp enters new employment agreement with ceo

Published 03/06/2025, 16:10
first financial corp enters new employment agreement with ceo

First Financial (NYSE:SSB) Corporation (NASDAQ:THFF), a $607 million market cap regional bank based in Terre Haute, Indiana, announced a new employment agreement with its President and CEO, Norman D. Lowery. According to InvestingPro data, the company trades at an attractive P/E ratio of 11x and shows signs of being slightly undervalued based on Fair Value analysis. The agreement, effective July 1, 2025, was disclosed in an 8-K filing with the Securities and Exchange Commission.

Under the terms of the agreement, Mr. Lowery will continue in his role for an initial term of 24 months. The agreement includes a provision for extension by the Compensation Committee for additional one-year periods. Mr. Lowery’s annual base salary is set at $675,350, with potential increases determined by the company’s board. He is also eligible for bonuses and other benefits available to executive officers.

The agreement outlines conditions for termination. If Mr. Lowery’s employment is terminated for "just cause," death, or "disability," he will receive his salary and benefits up to the termination date. Should the termination occur without just cause or if Mr. Lowery resigns for "good reason" outside of a change in control, he will be entitled to his salary and bonuses through the end of the agreement’s term. The bank has demonstrated strong financial performance, with two analysts recently revising earnings estimates upward for the upcoming period.

If a termination occurs within 12 months following a change in control, Mr. Lowery is entitled to a severance package. This package includes a payment equal to 2.99 times his base salary and bonuses, along with cash reimbursements for benefits over three years.

The agreement also contains confidentiality, non-solicitation, and non-compete clauses, restricting Mr. Lowery from competing within a specified radius of Terre Haute for one year post-termination.

This report is based on information from an SEC filing by First Financial Corporation. The company maintains a solid 3.99% dividend yield and has consistently paid dividends for 43 consecutive years. InvestingPro subscribers can access additional insights, including detailed financial health scores and more exclusive tips about First Financial Corporation’s performance and outlook.

In other recent news, First Financial Corporation announced the declaration of a quarterly dividend of 51 cents per share, payable on April 15, 2025, to shareholders recorded by April 1, 2025. This move aligns with the company’s strategy to consistently return value to its shareholders. Additionally, the company secured shareholder approval at its annual meeting for the re-election of six directors and the executive compensation package for 2024. The re-election saw a significant majority in favor, reflecting strong shareholder support. Crowe LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Furthermore, First Financial Corporation has entered into new employment agreements with three senior executives, effective July 1, 2025, ensuring continuity in leadership. These agreements include provisions for termination and severance in the event of a change in control. The company’s recent developments underscore its focus on governance, leadership stability, and shareholder returns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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