What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-06 compared with 2026-05-06 · 270 added, 125 removed, 986 unchanged (29% of the section changed)

39 unchanged sentences

Three Months Ended

Six Months Ended

INTEREST INCOME:

36 unchanged sentences

Three Months Ended

March 30, 2026, and 2025

June 30, 2026, and 2025

(Dollar amounts in thousands, except per share data)

1 unchanged sentence

Income/(Loss)

Balance, April 1, 2025

Other comprehensive income

Omnibus Equity Incentive Plan

Cash dividends, $ .51 per share

Balance, June 30, 2025

Balance, April 1, 2026

Other comprehensive income

Omnibus Equity Incentive Plan

Cash dividends, $ .56 per share

Balance, June 30, 2026

See accompanying notes.

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Six Months Ended

June 30, 2026, and 2025

(Dollar amounts in thousands, except per share data)

Comprehensive

Income/(Loss)

Balance, January 1, 2025

3 unchanged sentences

Cash dividends, $ 1.02 per share

Balance, March 31, 2025

Balance, June 30, 2025

Balance, January 1, 2026

3 unchanged sentences

Cash dividends, $ 1.12 per share

Balance, March 31, 2026

See accompanying notes.

Balance, June 30, 2026

FIRST FINANCIAL CORPORATION

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

Three Months Ended

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Provision for credit losses

Securities (gains)/losses

Depreciation and amortization

31 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The accompanying March 31, 2026 and 2025 consolidated financial statements are unaudited.

The accompanying June 30, 2026 and 2025 consolidated financial statements are unaudited.

The December 31, 2025 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2025 annual report.

5 unchanged sentences

All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature.

The Corporation reports financial information for only one segment, banking.

Some items in the prior year financials were reclassified to conform to the current presentation.

The Corporation operates as a single segment entity for financial reporting purposes and adopted ASU 2023-07, Segment Reporting , for the six months ended June 30, 2026.

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.

The Chief Financial Officer (“CFO”) serves as the Corporation’s chief operating decision maker (“CODM”).

The CODM allocates resources and assesses performance of the Corporation based on the consolidated performance, excluding all significant intercompany balances and transactions of the Corporation and its wholly owned subsidiary, the banking segment, and does not significantly utilize disaggregated segment financial information for decision making and resource allocation.

The CODM assesses performance for the banking segment and decides how to allocate resources based on net income as reported on the consolidated statement of income as consolidated net income.

Accordingly, all of the Corporation’s operations are considered by management to be aggregated in one reportable operating segment, the banking segment.

All categories of interest expense and non-interest expense as disclosed on the Corporation’s consolidated statements of income are considered significant to the banking segment.

The Corporation has reviewed the requirements of ASU 2023-07 and has determined that no additional segment disclosures are required, specifically as a result of the following:

• the Corporation does not use the tracked performance on the disaggregated segment level for decision-making or resource allocation purposes,

• no significant segment-specific expenses or performance metrics are used internally for decision-making or resource allocation purposes, and

• the level of financial consolidation presented in these financial statements aligns with the CODM’s internal reporting and decision-making process.

Based on this assessment the Corporation financial statement disclosures fully comply with ASC 2023-07, and no additional qualitative segment disclosures are necessary.

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders.

2 unchanged sentences

These shares vest over 3 years in increments of 33 %, 33 %, and 34 %, respectively.

For the three months ended 2026 and 2025, 16,647 and 25,134 shares were awarded, respectively.

For the six months ended June 30, 2026 and 2025, 16,647 and 25,134 shares were awarded, respectively.

These shares had a grant date value of $ 1.1 million and $ 1.2 million for 2026 and 2025, vest over three years , and their grant is not subject to future performance measures.

17 unchanged sentences

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

The Corporation assessed ASU 2025-05 and applied the standard to the consolidated financial statements and related disclosures.

The Corporation assessed ASU 2025-05, elected the practical expedient, and applied the standard to the consolidated financial statements and related disclosures.

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

4 unchanged sentences

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.

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

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.

10 unchanged sentences

Allowance for Credit Losses

The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended March 31.

The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended June 30.

Allowance for Credit Losses:

March 31, 2026

June 30, 2026

(Dollar amounts in thousands)

Beginning balance

Provision for credit losses

Loans charged-off

Ending Balance

Allowance for Credit Losses:

June 30, 2025

(Dollar amounts in thousands)

Beginning balance

Provision for credit losses

Loans charged-off

Ending Balance

The following table presents the activity of the allowance for credit losses by portfolio segment for the six months ended June 30.

Allowance for Credit Losses:

June 30, 2026

(Dollar amounts in thousands)

Beginning balance

Initial allowance on acquired loans

3 unchanged sentences

Allowance for Credit Losses:

March 31, 2025

June 30, 2025

(Dollar amounts in thousands)

4 unchanged sentences

The tables below present the recorded investment in non-performing loans by class of loans.

March 31, 2026

June 30, 2026

(Dollar amounts in thousands)

18 unchanged sentences

The following tables present the amortized cost basis of collateral dependent loans by class of loans:

March 31, 2026

June 30, 2026

Collateral Type

15 unchanged sentences

All Other Consumer

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.

March 31, 2026

The following tables present the aging of the recorded investment in loans by past due category and class of loans.

June 30, 2026

(Dollar amounts in thousands)

18 unchanged sentences

or a permanent reduction of the recorded investment in the loan.

The following table presents the amortized cost of loans and leases at March 31, 2026 that were both experiencing financial difficulty and modified during the twelve months ended March 31, 2026, by class and by type of modification.

The following table presents the amortized cost of loans and leases at June 30, 2026 that were both experiencing financial difficulty and modified during the twelve months ended June 30, 2026, by class and by type of modification.

The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each class of financial receivable is also presented below.

8 unchanged sentences

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

March 31, 2026

June 30, 2026

(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 March 31, 2026.

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the twelve months ended June 30, 2026.

Interest Rate

2 unchanged sentences

Motor Vehicle

The following table presents the amortized cost basis of loans that had a payment default during the twelve months ended March 31, 2026 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 June 30, 2026 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.

1 unchanged sentence

(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.

19 unchanged sentences

These balances do not include accrued interest:

March 31, 2026

June 30, 2026

Term Loans at Amortized Cost Basis by Origination Year

39 unchanged sentences

These balances do not include accrued interest:

March 31, 2026

June 30, 2026

Term Loans at Amortized Cost Basis by Origination Year

44 unchanged sentences

All securities are classified as available-for-sale.

March 31, 2026

June 30, 2026

(Dollar amounts in thousands)

15 unchanged sentences

Collateralized debt obligations

Contractual maturities of debt securities at March 31, 2026 were as follows.

Contractual maturities of debt securities at June 30, 2026 were as follows.

Available-for-Sale

5 unchanged sentences

Mortgage-backed securities and collateralized mortgage obligations

There were no gross gains and losses from investment sales/calls realized by the Corporation for the three months ended March 31, 2026.

Additionally, there were no gross gains and losses from investment sales/calls realized by the Corporation for the three months ended March 31, 2025.

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at March 31, 2026 and December 31, 2025.

March 31, 2026

There were $ 1 thousand gross gains and $ 110 thousand in gross losses for both periods from investment sales/calls realized by the Corporation for the three and six months ended June 30, 2026.

Additionally, there were no gross gains and $ 3 thousand in gross losses for both periods from investment sales/calls realized by the Corporation for the three and six months ended June 30, 2025.

June 30, 2026

Less Than 12 Months

7 unchanged sentences

Municipal taxable

Collateralized debt obligations

Total temporarily impaired securities

16 unchanged sentences

Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.

Gross unrealized losses on investment securities were $ 123.17 million as of March 31, 2026 and $ 113.50 million as of December 31, 2025.

Gross unrealized losses on investment securities were $ 118.83 million as of June 30, 2026 and $ 113.50 million as of December 31, 2025.

Management believes these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer.

5 unchanged sentences

Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended March 31, 2026 and 2025:

Three Months Ended March 31,

The table below presents a rollforward of the credit losses recognized in earnings for the three and six month period ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

(Dollar amounts in thousands)

4 unchanged sentences

The Corporation invests in qualified affordable housing projects.

The balance of investment for qualified housing projects was $ 37.1 million at March 31, 2026 and $ 37.9 million at December 31, 2025.

The balance of investment for qualified housing projects was $ 36.3 million at June 30, 2026 and $ 37.9 million at December 31, 2025.

These balances are reflected in the other assets line on the consolidated balance sheets.

Total unfunded commitments related to the investments in qualified affordable housing projects totaled $ 17.4 million at March 31, 2026 and $ 19.9 million at December 31, 2025.

These balances are reflected in the other liabilities line on the consolidated balance sheets.The Corporation expects to fulfill these commitments by the end of December 31, 2037.

The Corporation recognized amortization expense of $ 15 thousand during the three months ended March 31, 2026, and $ 16 thousand during the three months ended March 31, 2025, which was included within other noninterest expense on the consolidated statements of income.

The Corporation recognized amortization expense of $ 773 thousand during the three months ended March 31, 2026, and $ 720 thousand during the three months ended March 31, 2025, which was included within income tax expense on the consolidated statements of income.

Additionally, the Corporation recognized tax credits and other benefits from its investment in affordable housing tax credits of $ 1.1 million during the three months ended March 31, 2026, and $ 914 thousand during the three months ended March 31, 2025.

Total unfunded commitments related to the investments in qualified affordable housing projects totaled $ 17.4 million at June 30, 2026 and $ 19.9 million at December 31, 2025.

These balances are reflected in the other liabilities line on the consolidated balance sheets.

The Corporation expects to fulfill these commitments by the end of December 31, 2037.

The Corporation recognized amortization expense of $ 1 thousand during the six months ended June 30, 2026, and $ 31 thousand during the six months ended June 30, 2025, which was included within other noninterest expense on the consolidated statements of income.

The Corporation recognized amortization expense of $ 1.5 million during the six months ended June 30, 2026, and $ 1.4 million during the six months ended June 30, 2025, which was included within income tax expense on the consolidated statements of income.

Additionally, the Corporation recognized tax credits and other benefits from its investment in affordable housing tax credits of $ 2.2 million during the six months ended June 30, 2026, and $ 1.8 million during the six months ended June 30, 2025.

820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

1 unchanged sentence

Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities;

Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;

quoted prices in markets that are not active;

3 unchanged sentences

For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined.

These securities are primarily trust preferred securities and investments in state and municipal securities.

The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value.

These securities are primarily trust preferred securities and collateralized debt obligations.

The fair value of collateral debt obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value.

Illiquidity spreads are then considered.

Credit reviews are performed on each of the issuers.

The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers.

The significant unobservable inputs used in the fair value measurement of the Corporation’s collateral debt obligations are credit spreads related to specific issuers.

Significantly higher credit spread assumptions would result in significantly lower fair value measurement.

1 unchanged sentence

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

March 31, 2026

June 30, 2026

Fair Value Measurements Using:

Significant Unobservable Inputs (Level 3)

Quoted Prices in Active Markets for Idential Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(Dollar amounts in thousands)

10 unchanged sentences

Fair Value Measurements Using:

Significant Unobservable Inputs (Level 3)

Quoted Prices in Active Markets for Idential Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(Dollar amounts in thousands)

9 unchanged sentences

There were no transfers between Level 1 and Level 2 during 2026 and 2025.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2026 and the year ended December 31, 2025.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2026 and the year ended December 31, 2025.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Three Months Ended

March 31, 2026

June 30, 2026

Collateralized

1 unchanged sentence

debt obligations

Beginning balance, April 1

Total realized/unrealized gains or losses

Included in earnings

Included in other comprehensive income

Ending balance, June 30

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Six Months Ended

June 30, 2026

Collateralized

(Dollar amounts in thousands)

debt obligations

Beginning balance, January 1

2 unchanged sentences

Included in other comprehensive income

Ending balance, March 31

Ending balance, June 30

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

9 unchanged sentences

Other real estate owned is valued at Level 3.

Other real estate owned at March 31, 2026 with a value of $ 184 thousand was reduced by $ 20 thousand for fair value adjustment.

At March 31, 2026 other real estate owned was comprised of $ 184 thousand from residential loans.

Other real estate owned at June 30, 2026 with a value of $ 1.0 million was reduced by $ 41 thousand for fair value adjustment.

At June 30, 2026 other real estate owned was comprised of $ 834 thousand from commercial loans and $ 205 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.

16 unchanged sentences

Other real estate and individually evaluated loans carried at fair value are primarily comprised of smaller balance properties.

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at March 31, 2026.

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at June 30, 2026.

(Dollar amounts in thousands)

19 unchanged sentences

10.00 %- 100.00

The carrying amounts and estimated fair value of financial instruments at March 31, 2026 and December 31, 2025, are shown below.

The carrying amounts and estimated fair value of financial instruments at June 30, 2026 and December 31, 2025, are shown below.

Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully.

7 unchanged sentences

The fair value of off-balance sheet items is not considered material.

March 31, 2026

June 30, 2026

(Dollar amounts in thousands)

26 unchanged sentences

(Dollar amounts in thousands)

June 30, 2026

December 31, 2025

Federal Funds Purchased

7 unchanged sentences

Collateral pledged to repurchase agreements by remaining maturity are as follows:

March 31, 2026

June 30, 2026

Repurchase Agreements

10 unchanged sentences

Other borrowings:

Other borrowings at March 31, 2026 and December 31, 2025 are summarized as follows:

Other borrowings at June 30, 2026 and December 31, 2025 are summarized as follows:

(Dollar amounts in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

2 unchanged sentences

The aggregate minimum annual retirements of other borrowings are as follows:

Twelve Months Ended March 31,

At March 31, 2026 and December 31, 2025, other borrowings are summarized as follows:

Twelve Months Ended June 30,

At June 30, 2026 and December 31, 2025, other borrowings are summarized as follows:

The Corporation’s subsidiary bank is a member of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances.

There are $ 200.6 million of advances from the FHLB at March 31, 2026, and $ 175.7 million of advances at December 31, 2025.

There are $ 284.4 million of advances from the FHLB at June 30, 2026, and $ 175.7 million of advances at December 31, 2025.

FHLB advances are, generally due in full at maturity.

1 unchanged sentence

In addition the Corporation acquired a note payable to a commercial bank and debentures with the acquisition of CedarStone.

The balance at March 31, 2026 is $ 8.1 million.

The note was repaid in the second quarter, and the balance of the debentures at June 30, 2026 is $ 7.0 million.

Components of Net Periodic Benefit Cost

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Post-Retirement

Pension Benefits

Health Benefits

Pension Benefits

Health Benefits

(Dollar amounts in thousands)

7 unchanged sentences

Contributions of $ 690 thousand have been made to the Pension Plan thus far in 2026.

Contributions of $ 82 thousand have been made through the first three months of 2026 for the Post Retirement Health Benefits plan.

Contributions of $ 110 thousand have been made through the first six months of 2026 for the Post Retirement Health Benefits plan.

No contributions have been made in 2026 for the ESOP.

The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit.

In the first three months of 2026 and 2025 there has been $ 1.1 million and $ 847 thousand of expense recorded for potential contributions to these alternative retirement benefit options.

In the first six months of 2026 and 2025 there has been $ 2.1 million and $ 1.6 million of expense recorded for potential contributions to these alternative retirement benefit options.

Revenue from Contracts with Customers

All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income.

The following table presents the Corporation’s sources of Non-Interest Income for the three months ended March 31, 2026 and 2025.

The following table presents the Corporation’s sources of Non-Interest Income for the three and six months ended June 30, 2026 and 2025.

Items outside the scope of ASC 606 are noted as such.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(Dollar amounts in thousands)

5 unchanged sentences

Loan servicing fees (a)

Net gains/(losses) on sales of securities (a)

Other service charges and fees (a)

1 unchanged sentence

(a) Not within the scope of ASC 606.

(b) The Other category includes gains/(losses) on the sale of OREO for the three months ended March 31, 2026 and March 31, 2025, totaling $( 11 ) thousand and zero, respectively, which is within the scope of ASC 606;

(b) The Other category includes gains/(losses) on the sale of OREO for the three months ended June 30, 2026 and June 30, 2025, totaling $( 20 ) thousand and $( 180 ) thousand, respectively, and for the six months ended for the same periods, totaling $( 31 ) thousand and $( 180 ) thousand, which is within the scope of ASC 606;

the remaining balance is outside the scope of ASC 606.

20 unchanged sentences

Accumulated Other Comprehensive (Loss)

The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive (loss) for the three months ended March 31, 2026 and 2025.

The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive (loss) for the three and six months ended June 30, 2026 and 2025.

(Losses) on available-

(Dollar amounts in thousands)

Beginning balance, April 1,

Change in other comprehensive income (loss) before reclassification

Amounts reclassified from accumulated other comprehensive income

Net current period other comprehensive income (loss)

Ending balance, June 30,

(Losses) on available-

(Dollar amounts in thousands)

Beginning balance, January 1,

2 unchanged sentences

Net current period other comprehensive income (loss)

Ending balance, March 31,

Ending balance, June 30,

(Losses) on available-

(Dollar amounts in thousands)

Beginning balance, April 1,

Change in other comprehensive income (loss) before reclassification

Amounts reclassified from accumulated other comprehensive income

Net current period other comprehensive income (loss)

Ending balance, June 30,

(Losses) on available-

(Dollar amounts in thousands)

Beginning balance, January 1,

2 unchanged sentences

Net current period other comprehensive income (loss)

Ending balance, March 31,

Ending balance, June 30,

Current Period

2 unchanged sentences

Unrealized gains (losses) on securities available-for-sale with other than temporary impairment

Total unrealized loss on securities available-for-sale

Unrealized gain (loss) on retirement plans

Current Period

(Dollar amounts in thousands)

Unrealized gains (losses) on securities available-for-sale without other than temporary impairment

Unrealized gains (losses) on securities available-for-sale with other than temporary impairment

Total unrealized gain (loss) on securities available-for-sale

4 unchanged sentences

Unrealized gains (losses) on securities available-for-sale with other than temporary impairment

Total unrealized gain (loss) on securities available-for-sale

Unrealized loss on retirement plans

Current Period

(Dollar amounts in thousands)

Unrealized gains (losses) on securities available-for-sale without other than temporary impairment

Unrealized gains (losses) on securities available-for-sale with other than temporary impairment

Total unrealized income (loss) on securities available-for-sale

Unrealized gain (loss) on retirement plans

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Details about accumulated

19 unchanged sentences

(see Footnote 8 for additional details).

Three Months Ended March 31, 2025

Six Months Ended June 30, 2026

Details about accumulated

19 unchanged sentences

(see Footnote 8 for additional details).

Three Months Ended June 30, 2025

Details about accumulated

Amount reclassified from

Affected line item in

other comprehensive

accumulated other

the statement where

income components

comprehensive income

net income is presented

(in thousands)

Unrealized gains and losses

Net securities gains (losses)

on available-for-sale

Income tax expense

Amortization of

Salary and benefits

retirement plan items

Income tax expense

Total reclassifications for the period

(a) Included in the computation of net periodic benefit cost.

(see Footnote 8 for additional details).

Six Months Ended June 30, 2025

Details about accumulated

Amount reclassified from

Affected line item in

other comprehensive

accumulated other

the statement where

income components

comprehensive income

net income is presented

(in thousands)

Unrealized gains and losses

Net securities gains (losses)

on available-for-sale

Income tax expense

Amortization of

Salary and benefits

retirement plan items

Income tax expense

Total reclassifications for the period

(a) Included in the computation of net periodic benefit cost.

(see Footnote 8 for additional details).

The Corporation leases certain branches under operating leases.

At March 31, 2026, the Corporation had lease liabilities totaling $ 7,384,000 and right-of-use assets totaling $ 7,225,000 related to these leases.

At June 30, 2026, the Corporation had lease liabilities totaling $ 7,683,000 and right-of-use assets totaling $ 7,507,000 related to these leases.

At December 31, 2025, the Corporation had lease liabilities totaling $ 7,547,000 and right-of-use assets totaling $ 7,386,000 related to these leases.

Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively.

At March 31, 2026, the weighted average remaining lease term for operating leases was 10.2 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.49 %.

At June 30, 2026, the weighted average remaining lease term for operating leases was 10.2 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.55 %.

The calculated amount of the lease liabilities and right-of-use assets are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments.

6 unchanged sentences

Lease costs were as follows:

Three Months Ended

Six Months Ended

(Dollar amounts in thousands)

March 31, 2026

March 31, 2025

June 30, 2026

June 30, 2025

Operating lease cost

5 unchanged sentences

Right-of-use assets obtained in exchange for new operating lease liabilities

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2026 were as follows:

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2026 were as follows:

(Dollar amounts in thousands)

March 31, 2026

Twelve Months Ended March 31,

June 30, 2026

Twelve Months Ended June 30,

Total Future Minimum Lease Payments

6 unchanged sentences

Acquisition-related costs of $ 1.5 million were included in the Corporation’s income statement for the year-to-date period ended December 31, 2025.

Additionally, the Corporation included acquisition-related costs of $ 41 thousand in the Corporation’s income statement for the three months ending March 31, 2026.

Additionally, the Corporation included acquisition-related costs of $ 1.5 million in the Corporation’s income statement for the six months ending June 30, 2026.

The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date, which resulted in a bargain purchase gain of $ 33 thousand.

Changes to the acquisition-date fair values of the assets acquired, liabilities assumed, or consideration transferred during the measurement period may result in adjustments to the bargain purchase gain.

The analysis of the review of accruals and the tax impact of the fair value adjustments is still in process.

(Dollar amounts in thousands)

11 unchanged sentences

Liabilities assumed

FHLB advances

Short-term borrowings

Other borrowings

10 unchanged sentences

The gross contractual amounts receivable relating to the purchased financial assets with credit deterioration was $ 3.7 million.

The Corporation

estimates, on the date of acquisition, that $ 695 thousand of the contractual cash flows specific to the purchased financial assets with credit deterioration will not be collected.

The Corporation estimates, on the date of acquisition, that $ 695 thousand of the contractual cash flows specific to the purchased financial assets with credit deterioration will not be collected.

The following table presents supplemental pro forma information as if the acquisition had occurred at the beginning of 2025.

1 unchanged sentence

The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates.

Three Months Ended March 31,

Six Months Ended June 30,

(Dollar amounts in thousands, except per share data)

7 unchanged sentences

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.

The goodwill value is subject to change pending receipt of the final valuation.

The goodwill for SimplyBank is deductible for income tax purposes as the transaction was accounted for as a taxable acquisition.

26 unchanged sentences

The following table presents supplemental pro forma information as if the acquisition had occurred at the beginning of 2023.

The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, interest expense on deposits acquired, and the related income tax effects.

The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, interest expense on

deposits acquired, and the related income tax effects.

The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates.

60 unchanged sentences

As such, reversion from forecast rates to historical loss rates is immediate.

The ACL and allowance for unfunded commitments were $52.3 million and $2.9 million, respectively at March 31, 2026, compared to $48.0 million and $2.9 million, respectively at December 31, 2025.

The qualitative amount of the reserve increased $607 thousand to $14.7 million.

The quantitative amount is $34.1 million at March 31, 2026, compared to $33.6 million at December 31, 2025.

The ACL and allowance for unfunded commitments were $50.9 million and $2.9 million, respectively at June 30, 2026, compared to $48.0 million and $2.9 million, respectively at December 31, 2025.

The qualitative amount of the reserve increased $1.8 million to $15.9 million.

The quantitative amount is $34.4 million at June 30, 2026, compared to $33.6 million at December 31, 2025.

There was no change in the allowance for unfunded commitments.

6 unchanged sentences

On March 1, 2026, First Financial Corporation completed the acquisition of CedarStone Financial, Inc.

As a result of the acquisition, loans acquired were $292 million, and deposits acquired were $313 million.

As a result of the acquisition, the book value of loans acquired were $292 million, and the book value of deposits acquired were $313 million.

Additionally, we recorded a bargain purchase gain of $33 thousand.

Net income will reflect one month of activity in the first quarter for activity from CedarStone.

Net income reflected one month of activity in the first quarter for activity from CedarStone.

Included in the variances in the following discussion are the values provided in this paragraph.

Net income for the three months ended March 31, 2026 was $19.8 million, compared to $18.4 million for the same period in 2025.

Basic earnings per share increased to $1.67 for the first quarter of 2026 compared to $1.55 for the same period in 2025.

Return on average assets and return on average equity were 1.35% and 11.93% respectively, for the three months ended March 31, 2026 compared to 1.34% and 13.04% for the three months ended March 31, 2025.

Net income for the three months ended June 30, 2026 was $22.7 million, compared to $18.6 million for the same period in 2025.

Basic earnings per share increased to $1.91 for the second quarter of 2026 compared to $1.57 for the same period in 2025.

Return on average assets and return on average equity were 1.48% and 13.71% respectively, for the three months ended June 30, 2026 compared to 1.34% and 12.90% for the three months ended June 30, 2025.

Net income for the six months ended June 30, 2026 was $42.5 million, compared to $37.0 million for the same period in 2025.

Basic earnings per share increased to $3.58 for the six months of 2026 compared to $3.12 for the same period in 2025.

Return on average assets and return on average equity were 1.42% and 12.82% respectively, for the six months ended June 30, 2026 compared to 1.34% and 12.97% for the six months ended June 30, 2025.

In light of events in the banking sector, including bank failures, continuing interest rate activity and recessionary concerns, the Corporation has proactively positioned the balance sheet to mitigate the risks affecting the Corporation and the overall banking industry in order to serve its clients and communities.

● Liquidity remains strong, with cash and available for sale securities representing approximately 20.7% of assets at March 31, 2026.

● Liquidity remains strong, with cash and available for sale securities representing approximately 20.5% of assets at June 30, 2026.

The Corporation maintains the ability to access considerable sources of contingent liquidity at the Federal Home Loan Bank and several correspondent banks.

3 unchanged sentences

Refer to the section Capital Adequacy , included elsewhere in this report for additional details.

● Asset quality remains solid, with a non-performing asset ratio of 0.64% of total assets as of March 31, 2026 and net charge-offs of 0.15% to average loans and leases, reflecting the Company's disciplined underwriting and conservative lending philosophy which has supported the Corporation’s strong credit performance during prior financial crises.

● Asset quality remains solid, with a non-performing asset ratio of 0.50% of total assets as of June 30, 2026 and net charge-offs of 0.20% to average loans and leases, reflecting the Company's disciplined underwriting and conservative lending philosophy which has supported the Corporation’s strong credit performance during prior financial crises.

Refer to the section Non-Performing Loan for additional information.

2 unchanged sentences

The Corporation’s primary source of earnings is net interest income, which is the difference between the interest earned on loans and other investments and the interest paid for deposits and other sources of funds.

Net interest income increased $4.9 million in the three months ended March 31, 2026 to $56.9 million from $52.0 million in the same period in 2025.

The net interest margin for the three months ended March 31, 2026 is 4.23% compared to 4.11% for the same period in 2025, a 2.90% increase.

The increase in yields on investments of 31 basis points is the primary contributor to the improved yield on average earning assets for the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Comparing the three months ended March 31, 2026 to the three months ended March 31, 2025, the effective rate paid on average interest-bearing deposits decreased 11 basis points.

Net interest income increased $8.5 million in the three months ended June 30, 2026 to $61.2 million from $52.7 million in the same period in 2025.

The net interest margin for the three months ended June 30, 2026 is 4.33% compared to 4.15% for the same period in 2025, a 4.32% increase.

Net interest income increased $13.5 million in the six months ended June 30, 2026 to $118.2 million from $104.6 million in the same period in 2025.

The net interest margin for the six months ended June 30, 2026 is 4.28% compared to 4.13% for the same period in 2025, a 3.61% increase.

The increase in yields on investments of 29 basis points is the primary contributor to the improved yield on average earning assets for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Comparing the six months ended June 30, 2026 to the six months ended June 30, 2025, the effective rate paid on average interest-bearing deposits decreased 13 basis points.

For the same period discussed above, interest paid on other borrowings decreased 71 basis points.

Non-Interest Income

Non-interest income for the three months ended March 31, 2026 was $11.2 million compared to $10.5 million for the same period in 2025.

Non-interest income for the three months ended June 30, 2026 was $10.6 million compared to $10.4 million for the same period in 2025.

Non-interest income for the six months ended June 30, 2026 was $21.9 million compared to $20.9 million for the same period in 2025.

Non-Interest Expenses

The Corporation’s non-interest expense for the quarter ended March 31, 2026 was $40.9 million compared to $36.8 million for the same period in 2025.

The Corporation’s non-interest expense for the quarter ended June 30, 2026 was $42.5 million compared to $38.3 million for the same period in 2025.

The Corporation’s non-interest expense for the six months ended June 30, 2026 was $83.4 million compared to $75.0 million for the same period in 2025.

This includes an overall increase in operating expenses as a result of the acquisition.

Allowance for Credit Losses

The Corporation’s provision for credit losses for the three months ended March 31, 2026, was $2.6 million, compared to provision of $2.0 million for the same period of 2025.

Net charge-offs for the first quarter of 2026 were $1.5 million compared to net charge-offs of $1.8 million for the same period of 2025.

The Corporation’s provision for credit losses for the three months ended June 30, 2026, was $1.3 million, compared to $2.0 million for the same period of 2025.

Net charge-offs for the second quarter of 2026 were $2.7 million compared to net charge-offs of $1.7 million for the same period of 2025.

The Corporation’s provision for credit losses for the six months ended June 30, 2026, was $3.9 million, compared to $3.9 million for the same period of 2025.

Net charge-offs for the six months ended June 30, 2026 were $4.2 million compared to net charge-offs of $3.5 million for the same period of 2025.

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.

In the first three months of 2026, no significant changes were made.

In the first six months of 2026, no significant changes were made.

Income Tax Expense

The Corporation’s effective income tax rate for the first three months of 2026 was 19.89% compared to 22.59% for the same period in 2025.

The Corporation’s effective income tax rate for the first six months of 2026 was 19.36% compared to 20.62% for the same period in 2025.

Non-performing Loans

Non-performing loans consist of (1) non-accrual loans on which the ultimate collectability of the full amount of interest is uncertain, and (2) loans past due ninety days or more as to principal or interest.

Non-performing loans decreased to $28.5 million at March 31, 2026 compared to $28.6 million at December 31, 2025.

Nonperforming loans increased 179.9% compared to $10.2 million as of March 31, 2025.

A summary of non-performing loans at March 31, 2026 and December 31, 2025 follows:

March 31, 2026

Non-performing loans decreased to $27.1 million at June 30, 2026 compared to $28.6 million at December 31, 2025.

Nonperforming loans increased 176.3% compared to $9.8 million as of June 30, 2025.

A summary of non-performing loans at June 30, 2026 and December 31, 2025 follows:

(Dollar amounts in thousands)

June 30, 2026

December 31, 2025

3 unchanged sentences

The following loan categories comprise significant components of the nonperforming non-restructured loans:

March 31, 2026

June 30, 2026

December 31, 2025

26 unchanged sentences

Management continuously evaluates the merits of such interest rate risk products but does not anticipate the use of such products to become a major part of the Corporation’s risk management strategy.

The table below shows the Corporation’s estimated sensitivity profile as of March 31, 2026.

The table below shows the Corporation’s estimated sensitivity profile as of June 30, 2026.

The change in interest rates assumes a parallel shift in interest rates of 100, 200, and 300 basis points.

11 unchanged sentences

Given the current rate environment, the Corporation anticipates $55.7 million in securities to be called within the next 12 months.

The Corporation also has $162.7 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, $891 million available with the Federal Reserve Bank, and $90 million of available fed funds lines with correspondent banks.

The Corporation also has $199.5 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, $1.0 billion available with the Federal Reserve Bank, and $90 million of available fed funds lines with correspondent banks.

With these sources of funds, the Corporation currently anticipates adequate liquidity to meet the expected obligations of its customers.

Financial Condition

Comparing the first three months of 2026 to year-ended December 31, 2025, loans net of deferred loan costs, have increased $369 million to $4.4 billion.

Deposits increased 6.4% to $4.8 billion at March 31, 2026 compared to December 31, 2025.

Other borrowings increased $20.5 million to $208.8 million at March 31, 2026 compared to December 31, 2025.

Comparing the first six months of 2026 to year-ended December 31, 2025, loans net of deferred loan costs, have increased $413 million to $4.5 billion.

Deposits increased 6.2% to $4.8 billion at June 30, 2026 compared to December 31, 2025.

Other borrowings increased $103.3 million to $291.5 million at June 30, 2026 compared to December 31, 2025.

Shareholders’ equity increased 3.83% or $24.9 million.

This financial performance increased book value per share 0.58% to $55.10 at March 31, 2026 from $54.78 at December 31, 2025.

This financial performance increased book value per share 3.73% to $56.83 at June 30, 2026 from $54.78 at December 31, 2025.

Book value per share is calculated by dividing the total shareholders’ equity by the number of shares outstanding.

Accumulated other comprehensive loss decreased $8.6 million primarily due to the market value of the securities portfolio, which reflected the decrease in securities pricing.

Accumulated other comprehensive loss increased $4.4 million primarily due to the market value of the securities portfolio, which reflected the decrease in securities pricing.

Capital Adequacy

19 unchanged sentences

Currently the Corporation exceeds all of these minimums.

March 31, 2026

June 30, 2026

December 31, 2025

9 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.

What changed 10-Q

Item 1. Financial Statements