37 unchanged sentences
The quantitative amount is $33.6 million at December 31, 2025, compared to $33.6 million at December 31, 2024.
−Removed: There was a $100 thousand increase in the allowance for unfunded commitments.
−Removed: The Corporation recorded $5.5 million in Day 2 provision on non-PCD loans acquired from SimplyBank.
−Removed: Additionally, the increase in allowance was related to one previously identified credit,
−Removed: reflecting further deterioration in collateral values in the year.
+Added: There was an $800 thousand increase in the allowance for unfunded commitments.
See additional discussion of ACL in the Allowance for Credit Losses section below.
23 unchanged sentences
Net income for 2025 was $79.2 million, or $6.68 per share versus $47.3 million, or $4.00 per share for 2024.
−Removed: The decrease in 2024 net income is primarily due to increased provision for credit losses associated with the acquisition of SimplyBank, as well as non-interest expenses, which included increased operating expenses, as a result of the acquisition and expenses associated with the acquisition, as described in those respective sections in the following pages.
−Removed: Return on average assets at December 31, 2024 decreased 26.98% to 0.92% compared to 1.26% at December 31, 2023.
+Added: The increase in 2025 net income is primarily due to organic growth.
+Added: In 2024 reduced net income was primarily due to increased provision for credit losses associated with the acquisition of SimplyBank, as described in those respective sections in the following pages.
+Added: Return on average assets at December 31, 2025 increased 54.35% to 1.42% compared to 0.92% at December 31, 2024.
The primary components of income and expense affecting net income are discussed in the following analysis.
4 unchanged sentences
The tax-equivalent yield on these assets increased to 5.92% in 2025 from 5.55% in 2024.
−Removed: Total average interest-
−Removed: bearing liabilities increased to $3.93 billion in 2024 from $3.50 billion in 2023.
−Removed: The average cost of these interest-bearing liabilities increased to 2.28% in 2024 from 1.74% in 2023.
−Removed: The net interest margin decreased from 3.78% in 2023 to 3.71% in 2024.
−Removed: Earning asset yields increased 43 basis points while the rate on interest-bearing liabilities increased by 54 basis points.
+Added: Total average interest-bearing liabilities increased to $4.12 billion in 2025 from $3.93 billion in 2024.
+Added: The average cost of these interest-bearing liabilities decreased to 2.08% in 2025 from 2.28% in 2024.
+Added: The net interest margin increased from 3.71% in 2024 to 4.29% in 2025.
+Added: Earning asset yields increased 37 basis points while the rate on interest-bearing liabilities decreased by 20 basis points.
CONSOLIDATED BALANCE SHEET - AVERAGE BALANCES AND INTEREST RATES
50 unchanged sentences
The analysis is governed by Accounting Standards Codification (ASC 326), implemented in 2020, which used an economic forecast that included the impact of the COVID-19 pandemic.
−Removed: For the year ended December 31, 2024, the provision for credit losses was $16.2 million, an increase of $8.9 million, or 122%, compared to 2023.
−Removed: The Corporation recorded $5.5 million in Day 2 provision on non-PCD loans acquired from SimplyBank.
−Removed: Additionally, the increase in provision as well as charge-offs were related to one previously identified credit, reflecting further deterioration in collateral values in the year.
+Added: For the year ended December 31, 2025, the provision for credit losses was $8.2 million, a decrease of $8.0 million, or 49%, compared to 2024, as required under the current CECL guidance.
+Added: In the third quarter 2024 the Corporation recorded $5.5 million in Day 2 provision on non-PCD loans acquired from SimplyBank.
+Added: Also in 2024, the provision as well as charge-offs were impacted by one previously identified credit, reflecting further deterioration in collateral values in the year.
No further losses are expected on this credit.
Based on management’s analysis of the current portfolio, an evaluation that includes consideration of changes in CECL model assumptions of credit quality, economic conditions, and loan composition, management believes the allowance is adequate.
−Removed: Net charge-offs for 2024 were $12.2 million as compared to $7.3 million for 2023 and $6.5 million for 2022 with current year over year increases driven from the previously identified credit discussed above.
−Removed: Non-accrual loans, decreased to $11.5 million at December 31, 2024 from $23.6 million at December 31, 2023.
−Removed: Loans past due 90 days and still on accrual increased to $1.8 million compared to $960 thousand at December 31, 2023.
+Added: Net charge-offs for 2025 were $6.9 million as compared to $12.2 million for 2024 and $7.3 million for 2023 with the 2024 charge-offs driven from the previously identified credit discussed above.
+Added: Non-accrual loans increased to $27.5 million at December 31, 2025 from $11.5 million at December 31, 2024.
+Added: Loans past due 90 days and still on accrual decreased to $1.1 million compared to $1.8 million at December 31, 2024.
NON-INTEREST INCOME
−Removed: Non-interest income of $42.8 million remained stable compared to the $42.7 million earned in 2023.
+Added: Non-interest income decreased to $42.0 million in 2025 from $42.8 million earned in 2024.
NON-INTEREST EXPENSES
Non-interest expenses increased to $154.9 million in 2025 from $144.4 million in 2024.
−Removed: The increase in non-interest expenses is primarily due to $1.7 million of expenses associated with the acquisition, as well as increases in operating expenses as a result of the acquisition.
+Added: The increase in non-interest expenses is primarily due to a full year of operating expenses from the 2024 acquisition.
The Corporation’s federal income tax provision was $19.5 million in 2025 compared to $9.9 million in 2024.
The overall effective tax rate in 2025 of 19.8% increased as compared to a 2024 effective rate of 17.3%.
+Added: Pretax income for the year ended December 31, 2025, was significantly higher than pretax income for the same period in 2024.
+Added: Since our permanent differences remained similar income was the driving factor for the increase in effective tax rate.
COMPARISON OF 2024 TO 2023
Net income for 2024 was $47.3 million, or $4.00 per share versus $60.7 million, or $5.08 per share for 2023.
−Removed: The decrease in 2023 net income is primarily due to increased provision for credit losses, as well as decreased non-interest income and increased non-interest expenses .
+Added: The decrease in 2024 net income is primarily due to increased provision for credit losses associated with the acquisition of SimplyBank, as well as non-interest expenses, which included increased operating expenses, as a result of the acquisition and expenses associated with the acquisition, as described in those respective sections in the following pages .
Net interest income increased $7.7 million in 2024 compared to 2023.
−Removed: The provision for credit losses increased $9.3 million from a negative provision of $2.0 million in 2022 to a provision of $7.3 million in 2023.
−Removed: Non-interest income decreased $4.0 million and non-interest expenses increased $4.2 million.
−Removed: The change in non-interest income from 2022 to 2023 was primarily driven by a $4.0 million legal settlement received in February 2022, and a $2.5 million bank owned life insurance mortality payment.
−Removed: The Corporation does not expect these items to reoccur.
−Removed: The year-over-year changes in non-interest expenses are consistent with the rate of increases in prior years and considered normal with the growth of our business.
−Removed: The provision for income taxes decreased $4.8 million from 2022 to 2023 and the effective tax rate decreased to 16.3% in 2023 from 19.0% in 2022.
−Removed: The decrease in income tax expense is due to a $1 million increase in tax credit investments, as well as increase in tax exempt interest income.
+Added: The provision for credit losses increased $8.9 million from $7.3 million in 2023 to a provision of $16.2 million in 2024.
+Added: Non-interest income remained stable and non-interest expenses increased $14.2 million.
+Added: The increase in non-interest expenses is primarily due to $1.7 million of expenses associated with the acquisition, as well as increases in operating expenses as a result of the 2024 acquisition.
+Added: The provision for income taxes decreased $1.9 million from 2023 to 2024 and the effective tax rate increased to 17.3% in 2024 from 16.3% in 2023.
COMPARISON AND DISCUSSION OF 2025 BALANCE SHEET TO 2024
2 unchanged sentences
Loans, net increased by $216.9 million to $4.01 billion.
−Removed: Deposits increased $628.8 million while borrowings increased by $39.4 million.
+Added: Deposits decreased $167.8 million while borrowings increased by $265.5 million.
Total shareholders’ equity increased $101.8 million to $650.9 million at December 31, 2025.
−Removed: Accumulated other comprehensive income decreased $5.2 million primarily due to the market value of the securities portfolio, which reflected a decrease in securities pricing.
+Added: Accumulated other comprehensive income increased $45.6 million primarily due to the market value of the securities portfolio, which reflected an increase in securities pricing.
In 2025 dividends declared by the Corporation totaled $2.09 per share.
4 unchanged sentences
Given the performance of the market, the Corporation shifted away from purchases to replace maturities in 2025.
+Added: In 2025 the Corporation recorded $4.6 million of losses associated with an investment portfolio restructuring in which $80 million of securities were sold and reinvested at an approximately two percent higher yield.
The average life of the portfolio decreased from 6.4 years in 2024 to 5.9 years in 2025.
18 unchanged sentences
(1) Distribution of maturities is based on the estimated life of the asset.
−Removed: Net unrealized gain/loss on available for sale securities decreased $12.4 million from a net unrealized loss of $153.4 million in 2023 to a net unrealized loss of $165.8 million in 2024.
+Added: Net unrealized gain/loss on available for sale securities increased $57.6 million from a net unrealized loss of $165.8 million in 2024 to a net unrealized loss of $108.2 million in 2025.
The Corporation does not expect realized losses, as there is no intent to sell at a loss.
25 unchanged sentences
Provision charged to expense
−Removed: CECL adoption
PCD ACL on acquired loans
11 unchanged sentences
Based on management’s analysis of the current portfolio, an evaluation that includes consideration of changes in CECL model assumptions of credit quality, economic conditions, and loan composition, management believes the allowance is adequate.
−Removed: Non-performing loans of $13.3 million at December 31, 2024 decreased from $24.6 million at December 31, 2023.
−Removed: The decrease in nonperforming loans is due to a commercial relationship that was downgraded in 2023.
−Removed: That relationship was subsequently charged off in 2024, thus reducing the balance of non-performing loans.
+Added: Non-performing loans of $28.6 million at December 31, 2025 increased from $13.3 million at December 31, 2024.
The table below presents the allocation of the allowance to the loan portfolios at year-end.
3 unchanged sentences
NONPERFORMING LOANS
−Removed: Management monitors the components and status of nonperforming loans as a part of the evaluation procedures used in determining the adequacy of the allowance for loan losses.
+Added: Management monitors the components and status of nonperforming loans as a part of the evaluation procedures used in determining the adequacy of the allowance for credit losses.
It is the Corporation’s policy to discontinue the accrual of interest on loans where, in management’s opinion, serious doubt exists as to collectability.
10 unchanged sentences
Consumer loans
−Removed: Past due 90 days or more
+Added: Past due 90 days or more and still accruing
Commercial loans
12 unchanged sentences
Other time deposits
−Removed: Deposits increased 7.30% to $4.4 billion at December 31, 2024 compared to December 31, 2023.
−Removed: The increase is due to the acquisition of SimplyBank.
+Added: Average deposits increased 5.18% to $4.6 billion at December 31, 2025 compared to December 31, 2024.
The Corporation estimates that uninsured deposits (1) totaled $864.6 million, or 19% of total deposits, at December 31, 2025, compared to $980.5 million, or 21%, at December 31, 2024.
7 unchanged sentences
OTHER BORROWINGS
−Removed: Advances from the Federal Home Loan Bank decreased to $7.3 million in 2024 compared to $108.6 million in 2023.
+Added: Advances from the Federal Home Loan Bank increased to $175.7 million in 2025 compared to $7.3 million in 2024.
First Financial Corporation borrowed $25 million on a note payable in June 2024 for the acquisition of SimplyBank.
62 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.