On this page of StockholderLetter.com we present the latest annual shareholder letter from FIRST FINANCIAL CORP /IN/ — ticker symbol THFF. Reading current and past THFF letters to shareholders can bring important insights into the investment thesis.
T
Empowering YOU with secure and innovative financial solutions focusing on quality of life. To be the foundation of community prosperity and trust for generations to come. Start with SOUNDNESS The strongest foundation for success is based on experience and stability. Prioritize GROWTH Avoiding complacency with a focus on continuous improvement. Deliver VALUE Solve for every client need. Find the SOLUTION Get the job done, obstacles are not excuses, they are opportunities. Be ACCOUNTABLE Set ambitious goals and communicate transparently. Build COMMUNITY Foster a culture of respect, belonging, & support, internally and externally.
Dear Shareholders, I am pleased to present the First Financial Bank 2025 Annual Report and to share an update on our performance, strategic execution, and outlook. Norman D. Lowery President & CEO In a year marked by shifting interest rates, intense competition for deposits, and continued economic uncertainty, First Financial delivered strong financial results while remaining disciplined in risk management, capital deployment, and long-term investment. Our performance reflects the durability of our relationship-based model and the consistent execution of our strategic priorities. X ! Q ? During 2025, we achieved several important milestones. We recorded our ninth consecutive quarter of loan growth and, for the first time in our history, total loans surpassed $4 billion. We also generated record net interest income and record net income for the year. These results reflect disciplined pricing, diversified revenue streams, stable asset quality, and continued expense management. Our balance sheet remains strong. We preserved capital flexibility while supporting organic growth and maintaining our long-standing commitment to returning capital to shareholders through dividends. Our capital ratios remain robust and position us to pursue strategic opportunities while maintaining a conservative risk posture. Asset quality metrics remained stable, and provision levels were consistent with loan growth and prudent allowance management. These outcomes underscore the durability of our earnings capacity across economic cycles. Strategic execution remained a priority throughout the year. In November 2025, we announced a definitive merger agreement with CedarStone Financial, Inc., headquartered in Lebanon, Tennessee, within the Nashville Metropolitan Statistical Area. As of September 30, 2025, CedarStone reported total assets of approximately $358 million and operates three full-service branches. The transaction is expected to close in the first quarter of 2026, subject to customary regulatory approvals and closing conditions. This acquisition will expand our Tennessee branch network from 15 to 18 locations and further strengthen our presence in the attractive and growing Nashville market. The CedarStone transaction reflects
our disciplined approach to growth, enhancing market density in high-opportunity regions while maintaining capital strength and a prudent risk profile. At the same time, we continued to optimize our physical footprint. During the fall of 2025, we consolidated four branch locations into nearby banking centers. These actions are expected to generate approximately $1.5 million in annual operating expense savings while preserving service quality. As customer preferences evolve, we remain focused on balancing digital convenience, relationship banking, and cost efficiency. Looking ahead, we continue to model midsingle-digit loan growth in both 2026 and 2027. We expect our standalone core net interest margin to trend modestly higher as earning assets reprice and new loan production is added, while deposit costs remain well managed. Our fee income outlook improves modestly, and while near-term expense levels reflect continued investment, we expect operating leverage to strengthen over time, including the full realization of CedarStone cost savings by early 2027. Investing in Technology F Ongoing investment in modernization remains central to our strategy. Throughout 2025, we enhanced digital platforms, data capabilities, and client-facing technologies to improve accessibility, transparency, and responsiveness. These initiatives support greater efficiency, stronger analytics, improved cross-functional collaboration, and more informed decision-making. We are also advancing the use of AI-enabled tools and automation to streamline processes, deepen insights, strengthen fraud defenses, and improve the overall client experience. Our focus is disciplined and responsible, leveraging innovation in ways that enhance risk management, productivity, and scalability. These investments are designed not simply to modernize systems, but to position First Financial for sustainable, profitable growth at scale. 9 F ! Our associates remain our greatest asset. First Financial reinforced a culture of shared success in 2025 by recognizing associates whose leadership, service, and performance advanced our strategic priorities and delivered measurable value across the organization. This commitment to a thriving workplace was affirmed when First Financial was selected as a recipient of the prestigious Excellence in Workplace Culture award from Awards.com. Through our OneFirst operating framework, we continue to strengthen collaboration, accountability, and unified execution across departments. OneFirst is more than a theme it is the discipline of aligning strategy, decision-making, and performance across the organization. We remain committed to leadership development, associate engagement, and empowering teams at every level. By investing in talent and reinforcing a culture of ownership and service, we are building the leadership depth necessary to support continued growth.
Our commitment to community remains central to our identity and long-term purpose. Guided by a focused corporate giving strategy, First Financial concentrates its philanthropic resources in three core areas: Affordable Housing Health & Human Services Financial Literacy In 2025, we approved more than $363,000 in donations and sponsorships across our fivestate footprint. Our associates contributed 6,092 volunteer hours, reflecting a culture of service that extends beyond financial contributions. We also made our largest-ever commitment to Habitat for Humanity, supporting 27 affiliates across our markets, including a major five- year investment in Wabash Valley Habitat for Humanity in Terre Haute. This partnership will help build affordable homes, restore neighborhoods, and provide working families with safe, secure housing. These initiatives are aligned with our broader commitment to financial inclusion and responsible growth. Strong communities contribute to long-term economic stability, which in turn strengthens our franchise. X o Returning capital to shareholders remains central to our financial strategy. Our capital position is healthy, and we intend to balance organic growth, strategic expansion, and shareholder returns with appropriate discipline. The President s Award celebrates associates who have gone above and beyond, demonstrating leadership, creativity, and collaboration in their contributions. Our 2025 honorees embody our mission to empower and inspire. (Pictured L-R): Jen Edly, Norm D. Lowery, Whitney Barber, Amanda Swift, Britt Lowery, Craig Kirk & Victoria Davis. (Not pictured: Nikki Couch)
 • shareholder letter icon 3/17/2026 Letter Continued (Full PDF)
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 • stockholder letter icon 3/17/2025 THFF Stockholder Letter
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 • Benford's Law Stocks icon THFF Benford's Law Stock Score = 100


THFF Shareholder/Stockholder Letter Transcript:

                       T          

Empowering YOU with secure and innovative
financial solutions focusing on quality of life.
To be the foundation of community prosperity
and trust for generations to come.
Start with SOUNDNESS
The strongest foundation for success is based on experience and stability.
Prioritize GROWTH
Avoiding complacency with a focus on continuous improvement.
Deliver VALUE
Solve for every client need.
Find the SOLUTION
Get the job done, obstacles are not excuses, they are opportunities.
Be ACCOUNTABLE
Set ambitious goals and communicate transparently.
Build COMMUNITY
Foster a culture of respect, belonging, & support, internally and externally.

Dear Shareholders,
I am pleased to present the First Financial Bank 2025 Annual Report
and to share an update on our performance, strategic execution,
and outlook.
Norman D. Lowery
President & CEO
In a year marked by shifting interest rates, intense competition
for deposits, and continued economic uncertainty, First Financial
delivered strong financial results while remaining disciplined in risk
management, capital deployment, and long-term investment. Our
performance reflects the durability of our relationship-based model
and the consistent execution of our strategic priorities.
X            !                  Q                          ?              
During 2025, we achieved several important milestones. We recorded
our ninth consecutive quarter of loan growth and, for the first time in
our history, total loans surpassed $4 billion. We also generated record
net interest income and record net income for the year. These results
reflect disciplined pricing, diversified revenue streams, stable asset
quality, and continued expense management.
Our balance sheet remains strong. We preserved capital flexibility
while supporting organic growth and maintaining our long-standing
commitment to returning capital to shareholders through dividends.
Our capital ratios remain robust and position us to pursue strategic
opportunities while maintaining a conservative risk posture.
Asset quality metrics remained stable, and provision levels were
consistent with loan growth and prudent allowance management.
These outcomes underscore the durability of our earnings capacity
across economic cycles.

Strategic execution remained a priority throughout the year.
In November 2025, we announced a definitive merger agreement with
CedarStone Financial, Inc., headquartered in Lebanon, Tennessee,
within the Nashville Metropolitan Statistical Area. As of September 30,
2025, CedarStone reported total assets of approximately $358 million
and operates three full-service branches. The transaction is expected
to close in the first quarter of 2026, subject to customary regulatory
approvals and closing conditions.
This acquisition will expand our Tennessee branch network from 15
to 18 locations and further strengthen our presence in the attractive
and growing Nashville market. The CedarStone transaction reflects

our disciplined approach to growth, enhancing
market density in high-opportunity regions
while maintaining capital strength and a
prudent risk profile.
At the same time, we continued to optimize
our physical footprint. During the fall of 2025,
we consolidated four branch locations into
nearby banking centers. These actions are
expected to generate approximately $1.5
million in annual operating expense savings
while preserving service quality. As customer
preferences evolve, we remain focused on
balancing digital convenience, relationship
banking, and cost efficiency.
Looking ahead, we continue to model midsingle-digit loan growth in both 2026 and
2027. We expect our standalone core net
interest margin to trend modestly higher
as earning assets reprice and new loan
production is added, while deposit costs
remain well managed. Our fee income outlook
improves modestly, and while near-term
expense levels reflect continued investment,
we expect operating leverage to strengthen
over time, including the full realization of
CedarStone cost savings by early 2027.
Investing in Technology
    F                                         
Ongoing investment in modernization
remains central to our strategy. Throughout
2025, we enhanced digital platforms, data
capabilities, and client-facing technologies
to improve accessibility, transparency, and
responsiveness. These initiatives support
greater efficiency, stronger analytics,
improved cross-functional collaboration, and
more informed decision-making.
We are also advancing the use of AI-enabled
tools and automation to streamline processes,
deepen insights, strengthen fraud defenses,
and improve the overall client experience.
Our focus is disciplined and responsible,
leveraging innovation in ways that enhance
risk management, productivity, and scalability.
These investments are designed not simply
to modernize systems, but to position
First Financial for sustainable, profitable
growth at scale.
                9                        F    !        
Our associates remain our greatest asset.
First Financial reinforced a culture of shared
success in 2025 by recognizing associates
whose leadership,
service, and performance
advanced our strategic
priorities and delivered
measurable value
across the organization.
This commitment to a
thriving workplace was
affirmed when First Financial was selected as
a recipient of the prestigious    Excellence in
Workplace Culture    award from Awards.com.
Through our OneFirst operating framework,
we continue to strengthen collaboration,
accountability, and unified execution across
departments. OneFirst is more than a
theme   it is the discipline of aligning strategy,
decision-making, and performance across the
organization.
We remain committed to leadership
development, associate engagement, and
empowering teams at every level. By investing
in talent and reinforcing a culture of ownership
and service, we are building the leadership
depth necessary to support continued growth.


Our commitment to community remains
central to our identity and long-term purpose.
Guided by a focused corporate giving
strategy, First Financial concentrates its
philanthropic resources in three core areas:
    Affordable Housing
    Health & Human Services
    Financial Literacy
In 2025, we approved more than $363,000 in
donations and sponsorships across our fivestate footprint. Our associates contributed
6,092 volunteer hours, reflecting a culture
of service that extends beyond financial
contributions.
We also made our largest-ever commitment to
Habitat for Humanity, supporting 27 affiliates
across our markets, including a major five-
year investment in Wabash Valley Habitat for
Humanity in Terre Haute. This partnership
will help build affordable homes, restore
neighborhoods, and provide working families
with safe, secure housing.
These initiatives are aligned with our broader
commitment to financial inclusion and
responsible growth. Strong communities
contribute to long-term economic stability,
which in turn strengthens our franchise.

    X                      o        
Returning capital to shareholders remains
central to our financial strategy. Our capital
position is healthy, and we intend to balance
organic growth, strategic expansion, and
shareholder returns with appropriate
discipline.
The President   s Award celebrates associates who have gone above and beyond, demonstrating leadership, creativity, and collaboration in their contributions. Our 2025 honorees
embody our mission to empower and inspire. (Pictured L-R): Jen Edly, Norm D. Lowery, Whitney Barber, Amanda Swift, Britt Lowery, Craig Kirk & Victoria Davis.
(Not pictured: Nikki Couch)


shareholder letter icon 3/17/2026 Letter Continued (Full PDF)
 

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