FIRST FINANCIAL BANCORP /OH/

Previous wording

First Financial Bancorp. is a $22.4 billion financial holding company headquartered in Cincinnati, Ohio. The Company primarily operates through First Financial Bank, an Ohio-chartered commercial bank with 151 full service banking centers as of June 30, 2026. First Financial provides banking and financial services products to business and retail clients through its six lines of business: Commercial, Retail Banking, Mortgage Banking, Wealth Management, Investment Commercial Real Estate and Commercial Finance. The Commercial Finance business lends to targeted industry verticals and has a national geographic footprint. Wealth Management, operating under the brand of Yellow Cardinal Advisory Group, had $4.6 billion in assets under management as of June 30, 2026, and provides services that include financial planning, investment management, trust administration, estate settlement, business succession planning services, brokerage services and retirement planning.

Current wording

First Financial Bancorp. is a $22.3 billion financial holding company headquartered in Cincinnati, Ohio. The Company primarily operates through First Financial Bank, an Ohio-chartered commercial bank with 151 full service banking centers as of September 30, 2026. First Financial provides banking and financial services products to business and retail clients through its six lines of business: Commercial, Retail Banking, Mortgage Banking, Wealth Management, Investment Commercial Real Estate and Commercial Finance. The Commercial Finance business lends to targeted industry verticals and has a national geographic footprint. Wealth Management, operating under the brand of Yellow Cardinal Advisory Group, had $4.5 billion in assets under management as of September 30, 2026, and provides services that include financial planning, investment management, trust administration, estate settlement, business succession planning services, brokerage services and retirement planning.

Previous wording

The primary components of First Financial’s operating results for the three and six month periods ended June 30, 2026 are discussed in greater detail in the sections that follow.

Current wording

The primary components of First Financial’s operating results for the three and nine month periods ended September 30, 2026 are discussed in greater detail in the sections that follow.

Previous wording

First Financial has also established loan production offices in multiple locations outside its primary footprint to broaden its geographic presence, enhance access to prospective borrowers and support growth, thereby strengthening the Company's overall operations.

Current wording

Additionally, First Financial has established loan production offices in multiple locations outside its primary footprint to broaden its geographic presence, enhance access to prospective borrowers and support growth, thereby strengthening the Company's overall operations.

Previous wording

In July 2026, subsequent to the end of the second quarter, First Financial entered into an agreement with Finward Bancorp to acquire all of its equity shares in an all-stock transaction. Under the terms of the agreement, each outstanding share of Finward common stock will be converted into the right to receive 1.35 shares of First Financial common stock, valuing the transaction at approximately $207.5 million, based on First Financial's closing stock price on July 20, 2026.

Current wording

In July 2026, First Financial entered into an agreement with Finward Bancorp to acquire all of its equity shares in an all-stock transaction. Under the terms of the agreement, each outstanding share of Finward common stock will be converted into the right to receive 1.35 shares of First Financial common stock, valuing the transaction at approximately $207.5 million, based on First Financial's closing stock price on July 20, 2026.

Previous wording

Headquartered in Munster, Indiana, Finward Bancorp is the sole owner of Peoples Bank, which will merge into First Financial Bank upon close of the transaction. As of March 31, 2026, Finward operated 24 banking centers in Northwest Indiana and the Chicagoland area and had, on an unaudited basis, approximately $2.0 billion in assets, which includes $1.5 billion in loans and $1.7 billion in deposits. This pending acquisition expands First Financial’s presence in the Northwest Indiana and Chicago markets with a strong core deposit franchise while supplementing its existing commercial banking and wealth management lines of business.

Current wording

Headquartered in Munster, Indiana, Finward Bancorp is the sole owner of Peoples Bank, which will merge into First Financial Bank upon the close of the transaction. As of June 30, 2026, Finward Bancorp operated 24 full-service banking offices and had, on an unaudited basis, approximately $2.0 billion of total assets, $1.5 billion of total loans and $1.7 billion of total deposits. This pending acquisition expands First Financial’s presence in the Northwest Indiana and Chicago markets with a strong core deposit franchise while supplementing its existing commercial banking and wealth management lines of business.

Previous wording

The closing of the Finward Bancorp transaction is subject to satisfaction of customary conditions, including, among others, receipt of required regulatory approvals; the absence of any governmental order that restrains, prevents or materially alters the transactions contemplated by the agreement; the accuracy of the parties’ representations and warranties contained in the agreement (subject to certain qualifications); and the parties’ material compliance with the covenants and agreements.

Current wording

The Finward transaction has received approval from the Board of Governors of the Federal Reserve System, but the closing is subject to satisfaction of customary conditions, including, among others, the receipt of all specified governmental consents and approvals, including approval from the State of Ohio, that are necessary to consummate the transactions contemplated by the merger agreement; the absence of any governmental order that restrains, prevents or materially alters the transactions contemplated by the agreement; the accuracy of the parties’ representations and warranties contained in the agreement (subject to certain qualifications); and the parties’ material compliance with the covenants and agreements.

Previous wording

Linked quarter comparison: Second quarter 2026 net income was $76.5 million and earnings per diluted common share were $0.73. This compares with first quarter 2026 net income of $74.4 million and earnings per diluted common share of $0.71. Return on average assets was 1.37% for the second quarter of 2026 compared to 1.34% for the first quarter of 2026. Return on average shareholders’ equity was 10.39% for the second quarter of 2026 compared to 10.24% for the first quarter of 2026.

Current wording

Linked quarter comparison: Third quarter 2026 net income was $81.2 million and earnings per diluted common share were $0.77. This compares with second quarter 2026 net income of $76.5 million and earnings per diluted common share of $0.73. Return on average assets was 1.44% for the third quarter of 2026 compared to 1.37% for the second quarter of 2026. Return on average shareholders’ equity was 10.87% for the third quarter of 2026 compared to 10.39% for the second quarter of 2026.

Previous wording

Year-to-date comparison: For the six months ended June 30, 2026, net income was $150.9 million and earnings per diluted common share were $1.44. This compares with net income of $121.3 million and earnings per diluted common share of $1.27 for the first six months of 2025. Return on average assets for the six months ended June 30, 2026 was 1.36% compared to 1.33% for the same period in 2025, and return on average shareholders' equity was 10.32% and 9.83% for the first six months of 2026 and 2025, respectively.

Current wording

Year-to-date comparison: For the nine months ended September 30, 2026, net income was $232.1 million and earnings per diluted common share were $2.21. This compares with net income of $193.2 million and earnings per diluted common share of $2.02 for the first nine months of 2025. Return on average assets for the nine months ended September 30, 2026 was 1.39% compared to 1.40% for the same period in 2025, and return on average shareholders' equity was 10.50% and 10.26% for the first nine months of 2026 and 2025, respectively.

Previous wording

First Financial’s primary source of income is net interest income, which is the excess of interest received from earning assets, including loan-related fees and purchase accounting accretion, minus interest paid on interest-bearing liabilities. The amount of net interest income is determined by the volume and mix of earning assets, the rates earned on such assets and the volume, mix and rates paid for the deposits and borrowings that fund the earning assets. Earning assets consist of interest-bearing loans and leases to customers as well as marketable investment securities.

Current wording

First Financial’s primary source of income is net interest income, which is the excess of interest received from earning assets, including loan-related fees and purchase accounting accretion, minus interest paid on interest-bearing liabilities. The amount of net interest income is determined by the volume and mix of earning assets, the rates earned on such assets and the volume, mix and rates paid for the deposits and borrowings that fund the earning assets. Earning assets primarily consist of interest-bearing loans and leases to customers, as well as marketable investment securities.

Previous wording

Linked quarter comparison: Net interest income for the second quarter of 2026 was $190.4 million, which was an increase of $0.8 million, or 0.4%, from the first quarter of 2026. Net interest margin on a fully tax equivalent basis was 3.98% in the second quarter of 2026 compared to 3.99% for the first quarter of 2026. The net interest margin during the second quarter decreased 1 basis point from the linked quarter as earning asset yields decreased 7 bps, which was mostly offset by a 6 bp decline in cost of funds.

Current wording

Linked quarter comparison: Net interest income for the third quarter of 2026 was $196.3 million, which was an increase of $5.9 million, or 3.1%, from the second quarter of 2026. Net interest margin on a fully tax equivalent basis was 4.07% in the third quarter of 2026 compared to 3.98% for the second quarter of 2026. The fully tax equivalent net interest margin during the third quarter increased 9 basis points from the linked quarter as earning asset yields increased 13 bps, which was partially offset by a 4 bp increase in cost of funds.

Previous wording

Interest expense of $90.5 million decreased $2.3 million, or 2.4%, in the second quarter of 2026 when compared to the first quarter of 2026. The decrease in interest expense was primarily driven by a 4 bp decline in the cost of interest-bearing deposits to 2.29%, coupled with a lower average interest-bearing deposit balances. Additionally, average borrowed funds decreased $120.5 million, or 11.9%, from the linked quarter and the rates on borrowed funds declined 16 bps.

Current wording

Interest expense of $93.0 million increased $2.5 million, or 2.8%, in the third quarter of 2026 when compared to the second quarter of 2026. The increase in interest expense was primarily driven by a 5 bp increase in the cost of interest-bearing deposits to 2.34%, coupled with a $66.5 million, or 0.5%, increase in average interest-bearing deposit balances. Partially offsetting these increases, average borrowed funds decreased $112.7 million, or 12.6%, from the linked quarter, which offset a 41 bp increase in borrowing rates.

Previous wording

The notional value of the Company's cash flow hedges was $1.0 billion as of both June 30, 2026 and December 31, 2025, with the $0.3 million and $1.3 million changes in the fair value recorded in AOCI in the Consolidated Balance Sheets, respectively. As of June 30, 2026 and December 31, 2025, the maximum length of time over which the Company was hedging its exposure to the variability in future cash flows was 30 months and 36 months, respectively.

Current wording

The notional value of the Company's cash flow hedges was $900.0 million as of September 30, 2026 and $1.0 billion at December 31, 2025 with the $0.4 million and $1.3 million changes in the fair value recorded in AOCI in the Consolidated Balance Sheets, respectively. As of September 30, 2026 and December 31, 2025, the maximum length of time over which the Company was hedging its exposure to the variability in future cash flows was 27 months and 36 months, respectively.

Previous wording

Year-to-date comparison: Net interest income of $380.0 million for the first six months of 2026 increased $72.4 million, or 23.5%, compared to the same period of 2025. Net interest margin on a fully tax equivalent basis was 3.98% for the six months ended June 30, 2026, which was an increase of 2 bps when compared to the same period in 2025, as a 48 bp decline in the cost of interest-bearing liabilities and higher interest earning asset balances more than offset a 34 bp decrease in earning asset yields and higher interest-bearing liabilities.

Current wording

Year-to-date comparison: Net interest income of $576.2 million for the first nine months of 2026 increased $108.2 million, or 23.1%, compared to the same period of 2025. Net interest margin on a fully tax equivalent basis was 4.01% for the nine months ended September 30, 2026, which was an increase of 3 bps when compared to the same period in 2025, as a 45 bp decline in the cost of interest-bearing liabilities and higher interest earning asset balances more than offset a 31 bp decrease in earning asset yields and higher interest-bearing liabilities.

Previous wording

Interest income of $563.3 million for the six months ended June 30, 2026 grew $77.0 million, or 15.8%, compared to $486.3 million for the same period of the prior year as the increase in earning asset balances more than offset the decline in yield. Average earning assets of $19.3 billion for the first six months of 2026 increased $3.6 billion, or 22.6%, when compared to the same period of 2025, primarily due to the Westfield Bank and BankFinancial acquisitions. The change in earning assets included a $2.1 billion, or 17.5%, increase in average loan balances and a $1.5 billion, or 43.0%, increase in average investment securities. Average loan yields for the six months of 2026 decreased by 36 bps compared to the same period in the prior year, while the average yield on the investment portfolio increased by 5 bps in the first six months of 2026 primarily due to repositioning a portion of the portfolio in 2025.

Current wording

Interest income of $852.6 million for the nine months ended September 30, 2026 grew $116.1 million, or 15.8%, compared to $736.6 million for the same period of the prior year as the increase in earning asset balances more than offset the decline in yield. Average earning assets of $19.3 billion for the first nine months of 2026 increased $3.5 billion, or 21.9%, when compared to the same period of 2025, primarily due to the Westfield Bank and BankFinancial acquisitions. The change in earning assets included a $2.0 billion, or 17.4%, increase in average loan balances and a $1.4 billion, or 41.5%, increase in average investment securities. Average loan yields for the first nine months of 2026 decreased by 34 bps compared to the same period in the prior year, while the average yield on the investment portfolio increased by 9 bps in the first nine months of 2026 primarily due to repositioning a portion of the portfolio in 2025.

Previous wording

Interest expense for the six months ended June 30, 2026 was $183.4 million compared to $178.8 million for the same period in the prior year. This increase was driven by a $2.7 billion, or 24.2%, increase in average interest-bearing deposits primarily due to the Westfield Bank and BankFinancial acquisitions, which was partially offset by a 47 bp decline in the cost on those deposits. Average borrowings decreased $4.1 million, or 0.4%, compared to the six months of 2025, while the cost of borrowed funds declined 4 bps compared to the same period of the prior year.

Current wording

Interest expense for the nine months ended September 30, 2026 was $276.4 million compared to $268.5 million for the same period in the prior year. This increase was driven by a $2.7 billion, or 23.6%, increase in average interest-bearing deposits primarily due to the Westfield Bank and BankFinancial acquisitions, which was partially offset by a 44 bp decline in the cost on those deposits. Average borrowings decreased $17.7 million, or 1.9%, compared to the first nine months of 2025, while the cost of borrowed funds declined 12 bps compared to the same period of the prior year.

Previous wording

Linked quarter comparison: Second quarter 2026 noninterest income was $73.8 million, decreasing $8.1 million, or 9.9%, compared to $81.9 million for the first quarter of 2026. The decrease from the linked quarter was primarily driven by lower gain on bargain purchase, foreign exchange income, client derivative fees and wealth management fees. These decreases were partially offset by increases in other noninterest income, leasing business income and fewer losses on investment securities.

Current wording

Linked quarter comparison: Third quarter 2026 noninterest income was $77.7 million, increasing $3.9 million, or 5.2%, compared to $73.8 million for the second quarter of 2026. The increase from the linked quarter was primarily driven by foreign exchange income, client derivative fees, wealth management fees, and bankcard income. These increases were partially offset by lower gain on bargain purchase and gains from loan sales.

Previous wording

Year-to-date comparison: Noninterest income of $155.7 million for the first six months of 2026 increased $36.6 million, or 30.7%, from $119.1 million in the comparable period of 2025. The increase was primarily attributed to the gain on bargain purchase recognized in conjunction with the BankFinancial acquisition, fewer losses on investment securities and increases in foreign exchange income, leasing business income, client derivative fees, wealth management fees, net gains from sales of loans and service charges on deposit accounts.

Current wording

Year-to-date comparison: Noninterest income of $233.4 million for the first nine months of 2026 increased $40.7 million, or 21.1%, from $192.7 million in the comparable period of 2025. The increase was broad-based and is attributable to the gain on bargain purchase recognized in conjunction with the BankFinancial acquisition, fewer losses on investment securities and increases in foreign exchange income, leasing business income, client derivative fees, wealth management fees and service charges on deposit accounts.

Previous wording

Noninterest income included a $12.1 million gain on bargain purchase in the first half of 2026 that resulted from the BankFinancial acquisition. The gain on bargain purchase arose primarily from transaction-specific market factors, including the relative profitability profile of BankFinancial and the Company’s strategic focus on BankFinancial’s core deposit franchise and Chicago market presence.

Current wording

A $12.1 million gain on bargain purchase was recognized during the first nine months of 2026 in connection with the BankFinancial acquisition as the fair value of net identifiable assets acquired exceeded the purchase price for BankFinancial. The gain on bargain purchase arose primarily from transaction-specific market factors, including the relative profitability profile of BankFinancial and the Company’s strategic focus on BankFinancial’s core deposit franchise and Chicago market presence.

Previous wording

Losses on investment securities decreased $8.1 million in the first six months of 2026 as a result of the Bank repositioning a portion of the investment portfolio during the first half of 2025, which resulted in a $9.9 million loss during the prior period. Leasing business income increased $4.9 million, or 12.3%, due to continued portfolio growth and foreign exchange income increased $3.1 million, or 11.8%, as client demand increased compared to the prior year. Wealth management fees increased $2.8 million, or 17.6%, due to higher investment banking fees while service charges on deposit accounts increased $2.7 million, or 17.6%, due to an increase in deposit balances. Client derivative fees increased $2.2 million, or 68.0%, due to higher customer demand.

Current wording

Losses on investment securities decreased $8.4 million in the first nine months of 2026 as a result of the Bank repositioning a portion of the investment portfolio during the first nine months of 2025, which contributed to a $9.7 million loss during the prior period. Leasing business income increased $6.8 million, or 11.3%, due to continued portfolio growth and foreign exchange income increased $3.9 million, or 9.1%, as client demand increased compared to the prior year. Wealth management fees increased $4.6 million, or 19.7%, due to higher consulting fees while service charges on deposit accounts increased $3.9 million, or 16.8%, due to an increase in deposit balances. Client derivative fees increased $2.8 million, or 55.5%, due to higher customer demand. Partially offsetting these increases, other noninterest income decreased $2.3 million, or 11.9%, due to lower loan syndication fees in the current year.

Previous wording

Linked quarter comparison: Second quarter 2026 noninterest expenses were $161.5 million, which was a decrease of $7.9 million, or 4.6%, from $169.4 million in the first quarter of 2026. This decrease was primarily driven by a decrease in salaries and benefits expenses which was partially offset by increases in professional services, marketing and data processing expenses.

Current wording

Linked quarter comparison: Third quarter 2026 noninterest expenses were $165.7 million, which was an increase of $4.2 million, or 2.6%, from $161.5 million in the second quarter of 2026. This increase was primarily driven by an increase in salaries and benefits expenses which was partially offset by a decrease in professional services.

Previous wording

Salaries and employee benefits decreased $12.9 million, or 13.0%, as a result of lower incentive compensation tied to lower fee income. Professional services increased $3.4 million, or 85.3%, and marketing expenses increased $1.0 million, or 36.3%, during the second quarter of 2026 due to costs related to the BankFinancial acquisition. The $0.9 million, or 7.1%, increase in data processing expenses was also acquisition-related.

Current wording

Salaries and employee benefits increased $7.5 million, or 8.6%, as a result of incentive compensation tied to higher fee income while professional services decreased $3.8 million, or 51.7%, during the third quarter of 2026 due to a decrease in acquisition-related costs.

Previous wording

Year-to-date comparison: Noninterest expenses were $331.0 million for the first six months of 2026, which was an increase of $74.2 million, or 28.9%, compared to the same period in 2025. This increase was broad-based, with increases across all expense categories. The primary drivers of this expense growth were the Westfield and BankFinancial acquisitions.

Current wording

Year-to-date comparison: Noninterest expenses were $496.7 million for the first nine months of 2026, which was an increase of $105.7 million, or 27.0%, compared to the same period in 2025. This increase was broad-based, with increases across all expense categories. The primary drivers of this expense growth were the Westfield and BankFinancial acquisitions.

Previous wording

Salaries and employee benefits increased $36.6 million, or 24.4%, due to the Westfield and BankFinancial acquisitions as well as an increase in incentive compensation tied to fee income. Intangible amortization expenses increased $7.8 million, or 164.8%, due to core deposit intangible amortization related to the Westfield and BankFinancial acquisitions. Data processing increased $8.4 million, or 47.4%, and occupancy expenses increased $3.2 million, or 27.2%, both driven by the Westfield and BankFinancial acquisitions. Leasing business expenses increased $2.8 million, or 10.8%, as a result of the growth in the operating lease portfolio, while professional services increased $5.1 million, or 80.9%, due to expenses related to the

Current wording

164.6%, due to core deposit intangible amortization related to the Westfield and BankFinancial acquisitions. Data processing increased $11.5 million, or 42.1%, and occupancy expenses increased $4.8 million, or 26.9%, both driven by the Westfield and BankFinancial acquisitions. Leasing business expenses increased $3.2 million, or 8.0%, as a result of the growth in the operating lease portfolio, while professional services increased $6.3 million, or 73.7%, due to expenses related to the BankFinancial loans sold during the first quarter of 2026. Other noninterest expenses increased $8.6 million, or 26.1%, as a result of an increase in donations, insurance expense and credit origination expense while furniture and fixtures increased $3.0 million, or 27.7%, due to the additional cleaning and maintenance expenses for the branches acquired in the Westfield and BankFinancial acquisitions.

Previous wording

Linked quarter comparison: In the second quarter of 2026, First Financial recorded income tax expense of $18.0 million on pre-tax income of $94.4 million, resulting in an effective tax rate of 19.0%. This compared to income tax expense of $19.1 million on pre-tax income of $93.6 million and an effective tax rate of 20.4% for the first quarter 2026. The lower effective tax rate in the second quarter of 2026 was primarily driven by higher tax-exempt income and lower nondeductible charitable contributions.

Current wording

Linked quarter comparison: In the third quarter of 2026, First Financial recorded income tax expense of $18.1 million on pre-tax income of $99.3 million, resulting in an effective tax rate of 18.2%. This compared to income tax expense of $18.0 million on pre-tax income of $94.4 million and an effective tax rate of 19.0% for the second quarter 2026. The lower effective tax rate in the third quarter of 2026 was primarily driven by the recognition of certain solar tax credits during the third quarter.

Previous wording

Year-to-date comparison: For the first six months of 2026, income tax expense was $37.1 million on pre-tax income of $188.0 million, resulting in an effective tax rate of 19.7%. This compared to income tax expense of $30.2 million on pre-tax income of $151.5 million and an effective tax rate of 19.9% for the comparable period in 2025. The lower effective tax rate in the first six months of 2026 compared to 2025 was primarily driven by the nontaxable bargain purchase gain, which was partially offset by higher income, lower tax-exempt income and higher nondeductible charitable contributions.

Current wording

Year-to-date comparison: For the first nine months of 2026, income tax expense was $55.2 million on pre-tax income of $287.3 million, resulting in an effective tax rate of 19.2%. This compared to income tax expense of $48.9 million on pre-tax income of $242.1 million and an effective tax rate of 20.2% for the comparable period in 2025. The lower effective tax rate in the first nine months of 2026 compared to 2025 was primarily driven by the nontaxable bargain purchase gain related to the BankFinancial acquisition and increased tax credit activity, which was partially offset by higher income and nondeductible charitable contributions.

Previous wording

First Financial's investment portfolio totaled $4.9 billion at June 30, 2026 and $4.2 billion at December 31, 2025, or 21.9% and 19.7% of total assets, respectively. AFS securities totaled $4.7 billion at June 30, 2026 and $4.0 billion at December 31, 2025, while HTM securities totaled $46.1 million at June 30, 2026 and $58.5 million at December 31, 2025. The effective duration of the investment portfolio was 4.7 years at June 30, 2026 and 4.4 years at December 31, 2025.

Current wording

First Financial's investment portfolio totaled $4.8 billion at September 30, 2026 and $4.2 billion at December 31, 2025, or 21.6% and 19.7% of total assets, respectively. AFS securities totaled $4.6 billion at September 30, 2026 and $4.0 billion at December 31, 2025, while HTM securities totaled $38.3 million at September 30, 2026 and $58.5 million at December 31, 2025. The effective duration of the investment portfolio was 4.7 years at September 30, 2026 and 4.4 years at December 31, 2025.

Previous wording

During the six months ended June 30, 2026 and 2025, the Company realized $1.6 million and $9.7 million, respectively, of losses on investment securities. The losses recognized in the first half of 2026 included $8.3 million of impairment losses on investments with credit deterioration where the Company determined that it no longer intended to hold the security until the recovery of the amortized cost basis. The losses incurred in the first six months of 2025 were primarily the result of a strategic repositioning of a portion of the investment portfolio in order to increase future yields.

Current wording

During the three months ended September 30, 2026, the Company realized $0.2 million of gains on investment securities compared to insignificant losses for the comparable period in 2025. During the nine months ended September 30, 2026, the Company realized $1.4 million of losses on investment securities compared to $9.7 million of losses for the same period of 2025. The losses recognized in the first nine months of 2026 included $8.3 million of impairment losses on investments with credit deterioration where the Company determined that it no longer intended to hold the security until the recovery of the amortized cost basis. The losses incurred in the first nine months of 2025 were primarily the result of a strategic repositioning of a portion of the investment portfolio in order to increase future yields but also included $3.4 million of impairment losses.

Previous wording

The Company's Consolidated Financial Statements reflected $197.7 million and $163.9 million of unrealized, after-tax, losses on debt securities as of June 30, 2026 and December 31, 2025, respectively. These unrealized losses were included as a component of equity in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The increase in unrealized losses was primarily attributed to the increase in investment balances.

Current wording

The Company's Consolidated Financial Statements reflected $361.1 million and $163.9 million of unrealized, after-tax, losses on debt securities as of September 30, 2026 and December 31, 2025, respectively. These unrealized losses were included as a component of equity in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The increase in unrealized losses was primarily attributed to the increase in interest rates and investment balances.

Previous wording

Certain unrealized losses on investment securities may be the result of credit deterioration. As of June 30, 2026, First Financial had four AFS securities with credit deterioration with a fair value totalling $19.9 million, net of $1.6 million unrealized losses, compared to six AFS securities with credit deterioration and a fair value totalling $20.9 million, net of unrealized losses of $9.8 million, as of December 31, 2025. The Company continues to monitor these securities and believes it will receive full par value.

Current wording

Certain unrealized losses on investment securities may be the result of credit deterioration. As of September 30, 2026, First Financial had three AFS securities with credit deterioration with a fair value totalling $14.1 million, net of $0.8 million unrealized losses, compared to six AFS securities with credit deterioration and a fair value totalling $20.9 million, net of unrealized losses of $9.8 million, as of December 31, 2025. The Company continues to monitor these securities and believes it will receive full par value.

Previous wording

The Company had net unrealized losses of $4.2 million on its HTM securities at both June 30, 2026 and December 31, 2025. The unrealized losses on HTM securities have no impact on the Consolidated Financial Statements of the Company.

Current wording

The Company had net unrealized losses of $5.4 million on its HTM securities at September 30, 2026 compared to $4.2 million of losses at December 31, 2025. The unrealized losses on HTM securities have no impact on the Consolidated Financial Statements of the Company.

Previous wording

First Financial had $0.1 million of unrealized losses on equity securities recorded in noninterest income for the second quarter of 2026 compared to $0.2 million in the first quarter. The Company had $0.3 million of unrealized losses on equity securities for the first six months ended June 30, 2026 compared to $0.2 million of unrealized gains for the same period of 2025.

Current wording

First Financial had $0.2 million of unrealized gains on equity securities recorded in noninterest income for the third quarter of 2026 compared to insignificant losses in the second quarter. The Company had insignificant unrealized losses on equity securities for the first nine months ended September 30, 2026 compared to $0.2 million of unrealized gains for the same period of 2025.

Previous wording

First Financial will continue to monitor loan demand and deposit activity, as well as balance sheet composition, capital sensitivity and the interest rate environment, when considering future investment strategies.

Current wording

First Financial will continue to monitor loan demand and deposit activity, as well as balance sheet composition, capital sensitivity and the interest rate environment, when considering changes to the current investment strategies or adoption of future investment strategies.

Previous wording

Excluding loans held for sale, loan balances increased $310.8 million, or 2.3%, to $13.7 billion as of June 30, 2026 when compared to December 31, 2025. This increase was primarily driven by the acquisition of $264.1 million of loans in the BankFinancial transaction along with growth from the Company's specialty finance businesses.

Current wording

Excluding loans held for sale, loan balances increased $481.0 million, or 3.6%, to $13.9 billion as of September 30, 2026 when compared to December 31, 2025. This increase was primarily driven by the acquisition of loans in the BankFinancial transaction along with growth from the Company's commercial and specialty finance businesses.

Previous wording

During the first six months of 2026, C&I loans increased $210.1 million, or 4.5%, to $4.8 billion; commercial real estate loans increased $164.3 million, or 3.7%, to $4.5 billion; home equity increased $53.0 million, or 5.3%, to $1.1 billion; and finance leases increased by $20.8 million, or 3.3%. Partially offsetting these increases, construction loans decreased $78.1 million, or 11.5%, to $599.3 million; installment loans decreased $32.2 million, or 17.1%, to $156.5 million; and residential real estate loans declined $27.1 million, or 1.5%, to $1.8 billion.

Current wording

During the first nine months of 2026, C&I loans increased $316.1 million, or 6.8%, to $4.9 billion; commercial real estate loans increased $158.0 million, or 3.6%, to $4.5 billion; home equity increased $100.6 million, or 10.0%, to $1.1 billion; finance leases increased by $39.9 million, or 6.2%, to $678.4 million; and credit cards increased $1.3 million, or 2.0%, to $66.6 million. Partially offsetting these increases, construction loans decreased $70.6 million, or 10.4%, to $606.7 million; installment loans decreased $38.2 million, or 20.2%, to $150.5 million; and residential real estate loans declined $26.1 million, or 1.4%, to $1.8 billion.

Previous wording

Second quarter 2026 average loans of $13.6 billion, excluding loans held for sale, increased $9.4 million, or 0.1%, from the first quarter 2026. Average loan balances for the first six months of 2026 increased $1.8 billion, or 15.7%, when compared to same period of 2025 driven by the acquisitions of Westfield and BankFinancial. The increase from the prior year included an increase of $912.8 million, or 23.8%, in C&I loans; an increase of $508.5 million, or 12.8%, in CRE; an increase of $342.7 million, or 23.1%, in residential real estate; an increase of $155.0 million, or 17.7%, in home equity; an increase of $55.3 million, or 9.5%, in lease financing; an increase of $40.4 million, or 33.0%, in installment loans; and an increase of $3.4 million, or 5.1%, in credit cards. These increases were partially offset by a decrease of $177.5 million, or 22.5%, in construction loans.

Current wording

Third quarter 2026 average loans of $13.8 billion, excluding loans held for sale, increased $201.8 million, or 1.5%, from the second quarter 2026. Average loan balances for the first nine months of 2026 increased $1.9 billion, or 16.1%, when compared to same period of 2025 primarily driven by the acquisitions of Westfield and BankFinancial. The increase from the prior year included an increase of $932.9 million, or 24.2%, in C&I loans; an increase of $525.0 million, or 13.2%, in CRE; an increase of $328.8 million, or 22.2%, in residential real estate; an increase of $156.6 million, or 17.6%, in home equity; an increase of $60.2 million, or 10.3%, in lease financing; an increase of $40.2 million, or 33.6%, in installment loans; and an increase of $3.4 million, or 5.0%, in credit cards. These increases were partially offset by a decrease of $150.0 million, or 19.6%, in construction loans.

Previous wording

Given the potential for stress related to commercial office space, First Financial performed targeted reviews of its exposure to this sector. As of June 30, 2026, First Financial had $371.2 million of loans collateralized by non-owner occupied office space, which represents 2.7% of the total loan portfolio. The overall LTV of the office portfolio at origination was strong, and a majority is located in suburban locations and secured by Class A and Class B assets. As of June 30, 2026, the office portfolio included three nonaccrual relationships totaling $28.0 million, or 7.5% of the total office portfolio.

Current wording

Given the potential for stress related to commercial office space, First Financial performed targeted reviews of its exposure to this sector. As of September 30, 2026, First Financial had $381.3 million of loans collateralized by non-owner occupied office space, which represents 2.7% of the total loan portfolio. The overall LTV of the office portfolio at origination was strong, and a majority is located in suburban locations and secured by Class A and Class B assets. As of September 30, 2026, the office portfolio included three nonaccrual relationships totaling $26.7 million, or 7.0% of the total office portfolio.

Previous wording

Loans to NDFI totaled $464.8 million, or 3.4% of total loans, as of June 30, 2026. NDFI include a wide range of financial

Current wording

Loans to NDFI totaled $451.0 million, or 3.2% of total loans, as of September 30, 2026. NDFI include a wide range of financial entities that provide services similar to those of traditional banks but do not accept deposits from the general public and are not regulated by the Federal banking agencies. The NDFI balances at September 30, 2026 included $262.6 million in loans to mortgage credit intermediaries (primarily REITs), $135.3 million in loans to business credit intermediaries, $29.7 million in loans to private equity funds, and $23.4 million of loans to other NDFI, including consumer credit intermediaries. As of September 30, 2026, 95.6% of the loan balances to NDFI had an internal credit rating of pass.

Previous wording

Off-balance sheet arrangements include commitments to extend credit and financial guarantees. Loan commitments are agreements to extend credit to a client absent any violation of any condition established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. First Financial had outstanding commitments to extend credit, including overdraft lending lines, totaling $4.7 billion at June 30, 2026 and $4.5 billion at December 31, 2025. As of June 30, 2026, commitments with a fixed interest rate totaled $103.4 million while commitments with variable interest rates totaled $4.6 billion. At December 31, 2025, commitments with a fixed interest rate totaled $75.0 million while commitments with variable interest rates totaled $4.4 billion. The fixed rate commitments have interest rates ranging from 0% to 36% at June 30, 2026 and 0% to 21% at December 31, 2025. The fixed rate commitments have maturities ranging from less than one year to 31.0 years at June 30, 2026 and maturities ranging from less than one year to 31.6 years at December 31, 2025.

Current wording

Off-balance sheet arrangements include commitments to extend credit and financial guarantees. Loan commitments are agreements to extend credit to a client absent any violation of any condition established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. First Financial had outstanding commitments to extend credit, including overdraft lending lines, totaling $4.8 billion at September 30, 2026 and $4.5 billion at December 31, 2025. As of September 30, 2026, commitments with a fixed interest rate totaled $106.1 million while commitments with variable interest rates totaled $4.7 billion. At December 31, 2025, commitments with a fixed interest rate totaled $75.0 million while commitments with variable interest rates totaled $4.4 billion. The fixed rate commitments have interest rates ranging from 0% to 36% at September 30, 2026 and 0% to 21% at December 31, 2025. The fixed rate commitments have maturities ranging from less than one year to 31.0 years at September 30, 2026 and maturities ranging from less than one year to 31.6 years at December 31, 2025.

Previous wording

Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party. First Financial’s letters of credit consist primarily of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services for the third party. First Financial issued letters of credit aggregating $35.9 million and $36.6 million at June 30, 2026 and December 31, 2025, respectively. Management conducts regular reviews of these instruments on an individual client basis.

Current wording

Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party. Rarely drawn upon, First Financial’s letters of credit consist primarily of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services for the third party. First Financial issued letters of credit aggregating $34.9 million and $36.6 million at September 30, 2026 and December 31, 2025, respectively. Management conducts regular reviews of these instruments on an individual client basis.

Previous wording

First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $377.0 million and $335.0 million at June 30, 2026 and December 31, 2025, respectively. Under a risk participation agreement, the Company either assumes or sells a portion of the credit exposure associated with an interest rate swap with a counterparty. The Company's exposure is limited to instances where the loan customer defaults on its obligation to perform under the interest rate swap agreement.

Current wording

First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $351.3 million and $335.0 million at September 30, 2026 and December 31, 2025, respectively. Under a risk participation agreement, the Company either assumes or sells a portion of the credit exposure associated with an interest rate swap with a counterparty. The Company's exposure is limited to instances where the loan customer defaults on its obligation to perform under the interest rate swap agreement.