What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-04 compared with 2025-03-05 · 104 added, 116 removed, 1533 unchanged (13% of the section changed)

137 unchanged sentences

Provision for income taxes

OTHER COMPREHENSIVE INCOME (LOSS)

OTHER COMPREHENSIVE INCOME

Change in unrealized gains/(losses) on securities, net of reclassifications and taxes

Change in funded status of post retirement benefits, net of taxes

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME

PER SHARE DATA

13 unchanged sentences

Balance, December 31, 2023

Cumulative change in accounting principle ASU 2023-02

Other comprehensive income (loss)

4 unchanged sentences

Balance, December 31, 2024

Cumulative change in accounting principle ASU 2023-02

Other comprehensive income (loss)

9 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Net amortization (accretion) of premiums and discounts on investments

Net amortization of premiums and discounts on investments

Provision for credit losses

14 unchanged sentences

Purchases of securities available-for-sale

Proceeds from loans sold previously classified as portfolio loans

Loans made to customers, net of repayment

2 unchanged sentences

Purchase of restricted stock

Cash received (disbursed) from acquisitions, net

Cash received from acquisitions, net

Proceeds from sales of other real estate owned

5 unchanged sentences

Dividends paid

Purchase of treasury stock

Purchase of treasury shares

Proceeds from other borrowings

2 unchanged sentences

( 1,607,254 )

( 1,981,000 )

NET CASH FROM FINANCING ACTIVITIES

13 unchanged sentences

Portfolio Management Specialists B also owns First Financial Real Estate, LLC.

At December 31, 2024, $ 1.0 billion of securities and loans were owned by these subsidiaries.

At December 31, 2025, $ 984 million of securities and loans were owned by these subsidiaries.

Specialists A, Specialists B, Global Portfolio Limited Partners and First Financial Real Estate LLC are included in the consolidated financial statements.

First Financial Bank also has wholly-owned subsidiaries JBMM, LLC and Fort Webb LP, LLC.

First Financial Bank also has wholly-owned subsidiaries JBMM, LLC and Fort Webb LP, LLC, which are also included in the consolidated financial statements.

The Corporation, which is headquartered in Terre Haute, Indiana, offers a wide variety of financial services including commercial, mortgage and consumer lending, lease financing, trust account services and depositor services through its subsidiary.

2 unchanged sentences

First Financial Bank is the largest bank in Vigo County.

It operates seven full-service banking branches within the county;

one in Daviess County, Indiana.;

three in Clay County, Indiana;

one in Greene County, Indiana;

one in Knox County, Indiana;

two in Parke County, Indiana;

one in Putnam County, Indiana;

two in Sullivan County, Indiana;

one in Vanderburgh County, Indiana,;

three in Vermillion County, Indiana;

four in Champaign County, Illinois;

one in Clark County, Illinois;

one in Coles County, Illinois;

two in Crawford County, Illinois;

one in Franklin County, Illinois;

one in Jasper County, Illinois;

two in Jefferson County, Illinois;

one in Lawrence County, Illinois;

two in Livingston County, Illinois;

two in Marion County, Illinois;

two in McLean County, Illinois;

one in Richland County, Illinois;

five in Vermilion County, Illinois;

one in Wayne County, Illinois;

one in Breckinridge County, Kentucky;

one in Calloway County, Kentucky;

three in Christian County, Kentucky;

two in Fulton County, Kentucky;

two in Hancock County, Kentucky;

two in Hopkins County, Kentucky;

two in Marshall County, Kentucky;

one in Todd County, Kentucky;

one in Trigg County, Kentucky;

one in Warren County, Kentucky;

one in Bradley County, Tennessee;

three in Cheatham County, Tennessee;

two in Hamilton County, Tennessee;

one in Meigs County, Tennessee;

three in Montgomery County, Tennessee;

one in Polk County, Tennessee;

three in Rhea County, Tennessee;

two in Roane County, Tennessee;

one in Catoosa County, Georgia;

and two in Walker County, Georgia.

There are seven loan production offices, one in Allen County, Indiana;

one in Hamilton County, Indiana;

one in Monroe County, Indiana;

one in Vanderburgh County, Indiana;

one in Hamilton County, Tennessee;

one in Rutherford County, Tennessee;

and one in Williamson County, Tennessee.

It operates six full-service banking branches within the county;

and fifteen in Indiana, outside of Vigo County;

twenty-four in Illinois;

sixteen in Kentucky;

fifteen in Tennessee;

and three in Georgia.

There are eight loan production offices, four in Indiana;

and four in Tennessee.

The bank also has a main office in downtown Terre Haute and an operations center/office building in southern Terre Haute.

18 unchanged sentences

Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation.

Loans that management has the intent and ability to hold for the foreseeable future until maturity or pay-off are reported at the principal balance outstanding, net of unearned interest, purchase premiums and discounts, deferred loan fees and costs, and allowance for credit losses.

for credit losses.

Loans held for sale are reported at the lower of cost or fair value, on an aggregate basis.

34 unchanged sentences

Commercial real estate loans may be adversely affected by factors in the local market, the regional economy, or industry specific factors.

In addition, Commercial Construction loans are a specific type of commercial real estate loan

which inherently carry more risk than loans for completed projects.

In addition, Commercial Construction loans are a specific type of commercial real estate loan which inherently carry more risk than loans for completed projects.

Since these types of loans are underwritten utilizing estimated costs, feasibility studies, and estimated absorption rates, the underlying value of the project may change based upon the inaccuracy of these projections.

4 unchanged sentences

Mortgages sold to secondary market purchasers are underwritten to specific guidelines.

The Corporation originates some mortgages that are maintained in the bank’s loan portfolio.

The Corporation originates

some mortgages that are maintained in the bank’s loan portfolio.

Portfolio loans are generally adjustable rate mortgages and are underwritten to conform to Qualified Mortgage standards.

52 unchanged sentences

Segment Reporting:

The Corporation operates as a single segment entity for financial reporting purposes and has adopted ASU 2023-07, Segment Reporting , for the year ended December 31, 2024.

The Corporation operates as a single segment entity for financial reporting purposes and adopted ASU 2023-07, Segment Reporting , for the year ended December 31, 2024.

The Company has determined that its current operating model is structured whereby banking locations and divisions serve a similar base of commercial and retail customers for which the Corporation provides similar products and services managed through similar processes and technology platforms.

13 unchanged sentences

Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on third-party valuations that incorporate assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds and default rates and losses.

All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

All classes of servicing assets are

subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount.

7 unchanged sentences

The amortization of mortgage servicing rights is netted against loan servicing fee income.

Servicing fees totaled $ 1.1 million, $ 1.3 million and $ 1.4 million for the years ended December 31, 2024, 2023 and 2022.

Servicing fees totaled $ 970 thousand, $ 1.1 million and $ 1.3 million for the years ended December 31, 2025, 2024 and 2023.

Late fees and ancillary fees related to loan servicing are not material.

33 unchanged sentences

A liability is accrued for the obligation under these plans.

The expense incurred for the deferred compensation for each of the last three years was $ 56 thousand, $ 49 thousand, and $ 78 thousand, resulting in a deferred compensation liability of $ 1.0 million at December 31, 2024 and $ 1.1 million at December 31, 2023.

The expense incurred for the deferred compensation for each of the last three years was $ 46 thousand, $ 56 thousand, and $ 49 thousand, resulting in a deferred compensation liability of $ 979 thousand at December 31, 2025 and $ 1.0 million at December 31, 2024.

There are no deferred compensation plans now in effect for directors.

40 unchanged sentences

Accounting Pronouncements Adopted:

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2022-03 “Fair Value Measurements (Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.

ASU 2022-03 is effective for the Corporation for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption is permitted.

The Corporation adopted ASU 2022-03 on January 1, 2024, and it had no impact on its consolidated financial statements and related disclosures.

In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2023-02 “ Investments Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.

This guidance is effective for public business entities for fiscal years including interim periods within those fiscal years, beginning after December 15, 2023.

Early adoption is permitted in any interim period.

The Corporation adopted ASU 2023-02 on January 1, 2024 on a modified retrospective basis.

As a result of the adoption, other assets increased $ 19 million, other liabilities increased $ 21 million, and retained earnings decreased $ 1.7 million.

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

3 unchanged sentences

Early adoption is permitted.

The Corporation adopted ASU 2023-07 on January 1, 2024 for fiscal year activity and will apply ASU 2023-07 in interim periods within fiscal years beginning January 1, 2025.

The Corporation adopted ASU 2023-07 on January 1, 2024 for fiscal year activity and applied ASU 2023-07 in interim periods within fiscal years beginning January 1, 2025.

For additional information relating to the adoption of the amendments, see Note 1, under Segment Reporting.

Recently Issued Not Yet Effective Accounting Pronouncements:

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2 unchanged sentences

(1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received.) This guidance is effective for public business entities for annual periods beginning after December 15, 2024.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

The amendments should be applied on a prospective basis although retrospective application is permitted.

The Corporation is assessing ASU 2023-09 and i ts effect on its consolidated financial statements and related disclosures .

The Corporation adopted ASU 2023-09 retrospectively on January 1, 2025, and has provided the required disclosures in the Corporation’s 2025 annual filing .

For additional information relating to income tax disclosures, see Footnote 14.

Recently Issued Not Yet Effective Accounting Pronouncements:

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

5 unchanged sentences

The Corporation is assessing ASU 2024-03 and i ts effect on its consolidated financial statements and related disclosures .

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets .

" This ASU amends ASC 326-202 to provide a practical expedient (for all entities) and an accounting policy election (for all entities, other than public business entities that elect the practical expedient) related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, " Revenue From Contracts with Customers " .

This ASU is effective for annual and interim reporting periods in fiscal years beginning after December 15, 2025.

Early adoption is permitted for financial statements that have not yet been issued.

The Corporation will adopt ASU 2025-05 on January 1, 2026.

The Corporation is assessing ASU 2025-05 and i ts effect on its consolidated financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-08 Financial Instruments—Credit Losses (Topic 326) — Purchased Loans.

The amendments in this Update expand the population of acquired financial assets subject to the gross-up approach in Topic 326.

In accordance with the amendments in this Update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” are purchased seasoned loans and accounted for using the gross-up approach at acquisition.

All non- PCD (purchased financial asset with credit deterioration) loans (excluding credit cards) that are acquired in a business combination are deemed

Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans.

The amendments in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

The amendments in this Update should be applied prospectively to loans that are acquired on or after the initial application date.

Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance.

The Corporation will early adopt ASU 2025-08 on January 1, 2026.

The Corporation is assessing ASU 2025-08 and i ts effect on its consolidated financial statements and related disclosures.

FAIR VALUES OF FINANCIAL INSTRUMENTS:

18 unchanged sentences

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

Assets and liabilities measured at fair value on a recurring basis, are summarized below:

December 31, 2025

48 unchanged sentences

Other real estate owned is valued at Level 3.

Other real estate owned at December 31, 2024 with a value of $ 523 thousand was reduced by zero for fair value adjustment.

At December 31, 2024, other real estate owned was comprised of $ 433 thousand from commercial loans and $ 90 thousand from residential loans.

Other real estate owned at December 31, 2025 with a value of $ 94 thousand was reduced by $ 9 thousand for fair value adjustment.

At December 31, 2025, other real estate owned was comprised of zero from commercial loans and $ 94 thousand from residential loans.

Other real estate owned at December 31, 2024 with a value of $ 523 thousand was reduced by zero for fair value adjustment.

At December 31, 2024, other real estate owned was comprised of $ 433 thousand from commercial loans and $ 90 thousand from residential loans.

19 unchanged sentences

Unobservable Input(s)

State and municipal obligations

Discounted cash flow

Discount rate

Collateralized debt obligations

81 unchanged sentences

(Dollar amounts in thousands)

Gains of $ 133 thousand and losses of $ 30 thousand in 2024 and gains of $ 1 thousand and losses of $ 2 thousand in 2023 and gains of $ 6 thousand and losses of $ 3 thousand in 2022 resulted from redemption premiums on called and sold securities.

Gains of $ 25 thousand and losses of $ 4.625 million in 2025 and gains of $ 133 thousand and losses of $ 30 thousand in 2024 and gains of $ 1 thousand and losses of $ 2 thousand in 2023 resulted from redemption premiums on called and sold securities.

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.

Contractual maturities of debt securities at year-end 2025 were as follows.

38 unchanged sentences

In evaluating for impairment, management considers the reason for the decline, the extent of the decline, and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost.

If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security’s amortized cost is written down to fair value through income.

intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security’s amortized cost is written down to fair value through income.

If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis.

7 unchanged sentences

The table below presents a rollforward of the credit losses recognized in earnings for the years presented:

Three Months Ended December 31,

Year Ended December 31,

(Dollar amounts in thousands)

Beginning balance

Reductions for securities called during the period

Recoveries of amounts previously written off

Ending balance

27 unchanged sentences

The aggregate value of the transaction was approximately $ 73.4 million.

Acquisition-related costs of $ 1.7 million are included in the Corporation’s income statement for the year ended December 31, 2024.

Acquisition-related costs of $ 1.7 million were included in the Corporation’s income statement for the year ended December 31, 2024.

Goodwill of $ 11.2 million arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies.

39 unchanged sentences

Beginning balance

PCD ACL on acquired loans

Provision for credit losses

5 unchanged sentences

Beginning balance

PCD ACL on acquired loans

Provision for credit losses

10 unchanged sentences

December 31, 2025

90 Days Still

(Dollar amounts in thousands)

Still Accruing

For Credit Loss

6 unchanged sentences

December 31, 2024

90 Days Still

(Dollar amounts in thousands)

Still Accruing

For Credit Loss

5 unchanged sentences

All Other Consumer

The Corporation recognized $ 6.3 million of interest income on nonaccrual loans during the year ended December 31, 2025.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty:

9 unchanged sentences

(Dollar amounts in thousands)

All Other Residential

Motor Vehicle

The Corporation has no commitments to lend additional amounts to the borrowers included in the table above.

The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

All loans and leases that have been modified during the twelve months ended December 31, 2024 are in a current status of repayment.

The following table presents the performance of such loans that have been modified in the last twelve months:

December 31, 2025

(Dollar amounts in thousands)

Motor Vehicle

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the twelve months ended December 31, 2025.

1 unchanged sentence

(Dollar amounts in thousands)

All Other Residential

Motor Vehicle

There were no modified loans that had a payment default during the twelve months ended December 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

The following table presents the amortized cost basis of loans that had a payment default during the twelve months ended December 31, 2025 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

Interest Rate

(Dollar amounts in thousands)

Motor Vehicle

Upon the Corporation’s determination that a modified loan has subsequently been deemed uncollectible, the loan is written off.

137 unchanged sentences

Total other loans

The fair value of purchased financial assets with credit deterioration was $ 1.7 million on the date of acquisition.

The gross contractual amounts receivable relating to the purchased financial assets with credit deterioration was $ 4.7 million.

The Corporation estimates, on the date of acquisition, that $ 3.0 million of the contractual cash flows specific to the purchased financial assets with credit deterioration will not be collected.

There were two loans in this classification, and they were both commercial and industrial loans.

PREMISES AND EQUIPMENT:

15 unchanged sentences

Acquired goodwill

Goodwill related to the acquisition of Hancock Bancorp, Inc.

was increased by $ 850 thousand in 2022 due to adjustments to deferred tax assets related to the filing of the final Hancock Bancorp, Inc.

Measurement period adjustments

Goodwill related to the acquisition of SimplyBank was decreased by $ 1.8 million in 2025 due to adjustments to income tax assets related to the filing of the final SimplyBank tax return.

Intangible assets subject to amortization at December 31, 2025 and 2024 are as follows:

98 unchanged sentences

Currently payable

The Corporation has no foreign operations and therefore no foreign tax expense.

The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 21 % to income before income taxes is summarized as follows:

1 unchanged sentence

Federal income taxes computed at the statutory rate

Add (deduct) tax effect of:

Tax exempt income

ESOP dividend deduction

State tax, net of federal benefit (1)

General business tax credits

Low Income Housing Tax Credits (2)

Nontaxable or nondeductible items

Tax Exempt Interest Income, net of TEFRA

Tax Exempt BOLI Income

Nondeductible compensation

Other adjustments

Effective tax rate

(1) States and local jurisdictions that make up the majority (greater than 50 percent) of the tax effect in this category include Illinois and Indiana for 2025, 2024, and 2023.

(2) Includes tax credits, other tax benefits, and certain costs associated with LIHTC investments.

The amortization related to LIHTC investments is recognized in income tax expense in 2025 and 2024 with the adoption of PAM on January 1, 2024, and net with credit on this table.

In 2023, the amortization was recorded in other noninterest expense.

Income taxes were paid as follows:

(Dollar amounts in thousands)

Federal income taxes

State and local (1)

(1) The amount of income taxes paid to a particular state or jurisdiction is disclosed only for those states and jurisdictions that meet the 5% disaggregation threshold in a given year.

Taxes paid to states and jurisdictions that do not meet the 5% disaggregation threshold in a given year are included in Other.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2025 and 2024, are as follows:

72 unchanged sentences

Contributions to the ESOP are determined by the Corporation’s Board of Directors.

The Corporation made contributions to the defined benefit plan of $ 3.4 million, zero and $ 126 thousand in 2024, 2023 and 2022.

The Corporation made contributions to the defined benefit plan of $ 1.2 million, $ 3.4 million, and zero in 2025, 2024 and 2023.

The Corporation contributed $ 1.66 million, $ 1.67 million and $ 1.52 million to the ESOP in 2025, 2024 and 2023.

89 unchanged sentences

Other equity securities are predominantly stocks in large cap U.S.

Contributions — The Corporation expects to contribute $ 570 thousand to its pension plan and $ 563 thousand to its ESOP in 2025.

Contributions — The Corporation expects to contribute $ 1.6 million to its pension plan and $ 556 thousand to its ESOP in 2026.

Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected:

12 unchanged sentences

The Corporation has $ 10.8 million and $ 9.0 million recognized in the balance sheet as a liability at December 31, 2025 and 2024.

Amounts in accumulated other comprehensive income consist of $ 1.7 million net loss at December 31, 2024 and $ 926 thousand net loss at December 31, 2023.

Amounts in accumulated other comprehensive income consist of $ 3.2 million net loss at December 31, 2025 and $ 1.7 million net loss at December 31, 2024.

Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected:

51 unchanged sentences

Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of issue.

Compensation related to the plan was $ 1.3 million, $ 895 thousand, and $ 825 thousand in 2024, 2023 and 2022, respectively.

Compensation related to the plan was $ 931 thousand, $ 1.3 million, and $ 895 thousand in 2025, 2024 and 2023, respectively.

Weighted Average

8 unchanged sentences

The cost is expected to be recognized over a weighted-average period of 1.5 years.

The total fair value of the shares vested during the years ended December 31, 2024 and 2023 was $ 1.5 million and $ 874 thousand, respectively.

The total fair value of the shares vested during the years ended December 31, 2025 and 2024 was $ 1.2 million and $ 1.5 million, respectively.

OTHER COMPREHENSIVE INCOME (LOSS):

106 unchanged sentences

December 31, 2025

December 31, 2024

Operating lease cost

63 unchanged sentences

Investments in subsidiaries

Securities available-for-sale

Land and headquarters building, net

47 unchanged sentences

Cash paid during the year for:

SUBSEQUENT EVENTS (UNAUDITED):

On March 1, 2026, First Financial Corporation, an Indiana corporation ("First Financial"), and First Financial Bank, N.A.

(“First Financial Bank”), a wholly owned subsidiary of First Financial completed their previously announced acquisition of CedarStone Financial, Inc., a Tennessee corporation (“CedarStone”) and CedarStone Bank, a wholly owned subsidiary of CedarStone (“CedarStone Bank”), pursuant to the Agreement and Plan of Reorganization by and among First Financial, First Financial Bank, CedarStone, and CedarStone Bank, dated as of November 6, 2025 (the "Merger Agreement").

On the terms and subject to the conditions set forth in the Merger Agreement, CedarStone merged into First Financial, with First Financial as the surviving entity, and CedarStone Bank merged into First Financial Bank, with First Financial Bank as the surviving entity (the “Merger”).

Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger, First Financial paid $ 19.12 per share in cash for each share of CedarStone’s common stock outstanding.

The aggregate value of the transaction was approximately $ 25.0 million.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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.

What changed 10-K

Item 8. Financial Statements and Supplementary Data