First Financial Corporation (NASDAQ: THFF) lifts Q2 2026 net income to $22.7M

Q: How did First Financial Corporation (THFF) perform financially in Q2 2026?

First Financial Corporation reported Q2 2026 net income of $22.7 million , up from $18.6 million in Q2 2025. Diluted EPS was $1.91 versus $1.57, supported by record net interest income of $61.2 million and a 4.33% net interest margin.

Q: What were the key loan and deposit trends for THFF as of June 30, 2026?

Total loans were $4.47 billion and total deposits were $4.83 billion at June 30, 2026. Year over year, loans increased by $571 million and deposits by $170.5 million , while average quarterly deposits reached $4.87 billion .

Q: How did asset quality at First Financial Corporation (THFF) change in Q2 2026?

Asset quality softened, with nonperforming loans rising to $27.1 million versus $9.8 million a year earlier. The nonperforming loans to loans and leases ratio increased to 0.61% , and Q2 net charge‑offs were $2.7 million , up from $1.7 million.

Q: What profitability ratios did THFF report for the second quarter of 2026?

For Q2 2026, First Financial Corporation delivered a 1.48% return on average assets and a 13.71% return on average common shareholders’ equity. The efficiency ratio was 57.95% , reflecting operating costs relative to revenue, and net interest margin was 4.33% .

Q: What were THFF’s capital and book value metrics as of June 30, 2026?

Shareholders’ equity was $675.8 million at June 30, 2026, with book value per share of $56.83 and tangible book value per share of $46.98 . The tangible common equity to tangible asset ratio stood at 9.22% .

Q: What dividends did First Financial Corporation (THFF) pay in 2026 so far?

The company paid a $0.56 per share quarterly dividend in April 2026 and declared another $0.56 dividend that was paid on July 15, 2026. For the six months ended June 30, 2026, cash dividends declared per share totaled $1.12 .

Filing Impact

(Very High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

First Financial Corporation reported strong second‑quarter 2026 performance. Net income for the three months ended June 30, 2026 was $22.7 million, up from $18.6 million a year earlier, and diluted earnings per share were $1.91 versus $1.57. Net interest income reached a record $61.2 million, supported by a net interest margin of 4.33% and average loans of $4.45 billion.

Total loans outstanding were $4.47 billion and total deposits were $4.83 billion at June 30, 2026, reflecting solid balance‑sheet growth. The company completed the acquisition of CedarStone Financial, Inc. on March 1, 2026, adding $292 million of loans and $313 million of deposits and recording a cumulative bargain purchase gain of $33 thousand.

Profitability metrics remained favorable, with a return on average assets of 1.48%, return on average common shareholders’ equity of 13.71%, and an efficiency ratio of 57.95%. Asset quality weakened, as nonperforming loans rose to $27.1 million, or 0.61% of loans and leases, and quarterly net charge‑offs increased to $2.7 million, though the allowance for credit losses remained at 1.14% of total loans.

Positive

Q2 2026 net income rose to $22.7 million, with diluted EPS increasing to $1.91 from $1.57 and net interest income reaching a record $61.2 million, indicating materially higher profitability versus the prior‑year quarter.
Loans grew to $4.47 billion at June 30, 2026, up about $571 million year over year, marking the eleventh consecutive quarter of loan growth and supporting a strong 4.33% net interest margin and 1.48% return on average assets.

Negative

Nonperforming loans increased to $27.1 million, raising the nonperforming loans to total loans and leases ratio to 0.61% from 0.25% a year earlier, while quarterly net charge‑offs rose to $2.7 million and reserve coverage of nonperformers declined.

Filing Explained

No shares were repurchased in the last twelve months; 518,860 remain authorized, showing capacity rather than a committed buyback.

The July 28, 2026 Form 8-K reports second-quarter results and states that a $0.56 quarterly dividend was paid on July 15, 2026, while no common shares were repurchased during the last twelve months.

Item 2.02 is the results-of-operations category, and the company says the release is furnished rather than treated as filed under the specified securities-law liability provisions.

The company reports that 518,860 shares remain available under its current repurchase authorization; this is remaining capacity, not a reported buyback or completed share reduction.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Net Income: $22,743 thousand Q2 2026 Diluted EPS: $1.91 Q2 2026 Net Interest Income: $61,222 thousand +5 more

8 metrics

Q2 2026 Net Income $22,743 thousand Net income for the three months ended June 30, 2026

Q2 2026 Diluted EPS $1.91 Basic and diluted earnings per share for Q2 2026

Q2 2026 Net Interest Income $61,222 thousand Net interest income for the three months ended June 30, 2026

Net Interest Margin Q2 2026 4.33 % Net interest margin for the quarter ended June 30, 2026

Total Loans June 30, 2026 $4,467,897 thousand Loans including net deferred loan costs at June 30, 2026

Nonperforming Loans June 30, 2026 $27.1 million Nonperforming loans as of June 30, 2026

Credit Loss Reserve to Loans 1.14 % Allowance for credit losses as a percent of total loans at June 30, 2026

Return on Average Assets Q2 2026 1.48 % Return on average assets for the three months ended June 30, 2026

Key Terms

net interest margin, efficiency ratio, bargain purchase gain, tangible common equity, +2 more

6 terms

net interest margin financial

"Our net interest margin and profitability remain strong with a 4.33% net interest margin"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

"The Corporation’s efficiency ratio was 57.95% for the quarter ending June 30, 2026"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

bargain purchase gain financial

"The cumulative resulting quarter-end bargain purchase gain was $33 thousand"

A bargain purchase gain happens when a buyer acquires another company's assets for less than those assets' estimated fair value, producing an immediate accounting profit for the buyer. For investors, it matters because that one-time gain boosts the acquirer's reported earnings and can signal a very favorable deal — like finding a valuable item at a steep discount — but it may also prompt scrutiny about whether asset values or the deal terms were estimated correctly.

tangible common equity financial

"The Corporation’s tangible common equity to tangible asset ratio was 9.22% at June 30, 2026"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

allowance for credit losses financial

"The Corporation’s allowance for credit losses as of June 30, 2026, was $50.9 million"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonperforming loans financial

"Nonperforming loans as of June 30, 2026, were $27.1 million versus $9.8 million"

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

Earnings Snapshot

Q2 2026 Net Income: $22,743 thousand

Three and six months ended June 30, 2026

Q2 2026 Net Income $22,743 thousand up from $18,586 thousand in Q2 2025

Q2 2026 Diluted EPS $1.91 up from $1.57 in Q2 2025

Q2 2026 Net Interest Income $61,222 thousand up from $52,671 thousand in Q2 2025

Q2 2026 Net Interest Margin 4.33 % up from 4.15% in Q2 2025

Nonperforming Loans at June 30, 2026 $27.1 million up from $9.8 million at June 30, 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Understanding 8-K Material Events →

Available on EDGAR 07/28/2026 - 09:02 AM Accepted by SEC EDGAR 07/28/2026 - 09:01 AM

FAQ

How did First Financial Corporation (THFF) perform financially in Q2 2026?

First Financial Corporation reported Q2 2026 net income of $22.7 million, up from $18.6 million in Q2 2025. Diluted EPS was $1.91 versus $1.57, supported by record net interest income of $61.2 million and a 4.33% net interest margin.

What were the key loan and deposit trends for THFF as of June 30, 2026?

Total loans were $4.47 billion and total deposits were $4.83 billion at June 30, 2026. Year over year, loans increased by $571 million and deposits by $170.5 million, while average quarterly deposits reached $4.87 billion.

How did asset quality at First Financial Corporation (THFF) change in Q2 2026?

Asset quality softened, with nonperforming loans rising to $27.1 million versus $9.8 million a year earlier. The nonperforming loans to loans and leases ratio increased to 0.61%, and Q2 net charge‑offs were $2.7 million, up from $1.7 million.

What profitability ratios did THFF report for the second quarter of 2026?

For Q2 2026, First Financial Corporation delivered a 1.48% return on average assets and a 13.71% return on average common shareholders’ equity. The efficiency ratio was 57.95%, reflecting operating costs relative to revenue, and net interest margin was 4.33%.

What impact did the CedarStone Financial acquisition have on THFF in 2026?

On March 1, 2026, THFF completed the acquisition of CedarStone Financial, Inc., adding $292 million of loans and $313 million of deposits. After measurement‑period adjustments, the transaction produced a cumulative bargain purchase gain of $33 thousand by quarter‑end.

What were THFF’s capital and book value metrics as of June 30, 2026?

Shareholders’ equity was $675.8 million at June 30, 2026, with book value per share of $56.83 and tangible book value per share of $46.98. The tangible common equity to tangible asset ratio stood at 9.22%.

What dividends did First Financial Corporation (THFF) pay in 2026 so far?

The company paid a $0.56 per share quarterly dividend in April 2026 and declared another $0.56 dividend that was paid on July 15, 2026. For the six months ended June 30, 2026, cash dividends declared per share totaled $1.12.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 28, 2026

FIRST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number: 0-16759

Indiana		35-1546989
(State or other jurisdiction		(I.R.S. Employer
incorporation or organization)		Identification No.)

One First Financial Plaza, Terre Haute, IN		47807
(Address of principal executive office)		(Zip Code)

(812) 238-6000
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, par value $0.125 per share		THFF		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On July 28, 2026, the Registrant issued a press release reporting its financial results for the three and six months ended June 30, 2026. A copy of the press release is being furnished as an exhibit to this report and is incorporated herein by reference in its entirety.

The foregoing information, including the information contained in the press release, is being furnished pursuant to this Item 2.02 and shall not be deemed to be “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed to be incorporated by reference into any of the Registrant’s filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits

The exhibit to this report is as follows:

Exhibit Number

99.1		Press Release, July 28, 2026, issued by First Financial Corporation
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	First Financial Corporation

Dated July 28, 2026
	/s/ Rodger A. McHargue
	Rodger A. McHargue
	Secretary/Treasurer and Chief Financial Officer

Exhibit 99.1


	News Release

FIRST FINANCIAL CORPORATION

One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000

First Financial Corporation Reports Second Quarter Results

Terre Haute, Indiana, July 28, 2026 – First Financial Corporation (NASDAQ:THFF) today announced results for the second quarter of 2026.

●

Net income was $22.7 million compared to $18.6 million reported for the same period of 2025;

●

Diluted net income per common share of $1.91 compared to $1.57 for the same period of 2025;

●

Return on average assets was 1.48% compared to 1.34% for the three months ended June 30, 2025;

●

Provision for credit losses was $1.3 million compared to provision of $2.0 million for the second quarter 2025; and

●

Pre-tax, pre-provision net income was $29.3 million compared to $24.9 million for the same period in 2025.¹

The Corporation further reported results for the six months ended June 30, 2026:

●

Net income was $42.5 million compared to $37.0 million reported for the same period of 2025;

●

Diluted net income per common share of $3.58 compared to $3.12 for the same period of 2025;

●

Return on average assets was 1.42% compared to 1.34% for the six months ended June 30, 2025;

●

Provision for credit losses was $3.9 million compared to provision of $3.9 million for the six months ended June 30, 2025; and

●

Pre-tax, pre-provision net income was $56.6 million compared to $50.6 million for the same period in 2025.¹

¹Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release.

Acquisition

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. Although we initially recognized a bargain purchase gain of $716 thousand in the first quarter 2026, measurement period adjustments recorded in the second quarter revised the preliminary purchase accounting. The cumulative resulting quarter-end bargain purchase gain was $33 thousand.

Average Total Loans

Average total loans for the second quarter of 2026 were $4.45 billion versus $3.88 billion for the comparable period in 2025, an increase of $575 million or 14.83%. On a linked quarter basis, average loans increased $282 million or 6.78% from $4.16 billion as of March 31, 2026.

Total Loans Outstanding

Total loans outstanding as of June 30, 2026, were $4.47 billion compared to $3.90 billion as of June 30, 2025, an increase of $571 million or 14.66%. On a linked quarter basis, total loans increased $44.0 million or 0.99% from $4.42 billion as of March 31, 2026.

Organic growth of $300 million year-over-year was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

Norman D. Lowery, President and Chief Executive Officer, commented “We are pleased with our second quarter results. The quarter marked the eleventh consecutive quarter of loan growth, contributing to another quarter of record net income. Our net interest margin and profitability remain strong with a 4.33% net interest margin and a 1.48% return on assets.”

Average Total Deposits

Average total deposits for the quarter ended June 30, 2026, were $4.87 billion versus $4.65 billion as of June 30, 2025, an increase of $218 million, or 4.68%. On a linked quarter basis, average deposits increased $205 million or 4.40% from $4.66 billion as of March 31, 2026.

Total Deposits

Total deposits were $4.83 billion as of June 30, 2026, compared to $4.66 billion as of June 30, 2025. On a linked quarter basis, total deposits decreased $9.0 million or 0.19% from $4.84 billion as of March 31, 2026. Non-interest bearing deposits were $999 million, and time deposits were $802 million as of June 30, 2026, compared to $860 million and $710 million, respectively for the same period of 2025.

Shareholders’ Equity

Shareholders’ equity at June 30, 2026, was $675.8 million compared to $587.7 million on June 30, 2025. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.56 per share quarterly dividend in April and declared a $0.56 quarterly dividend, which was paid on July 15, 2026.

Book Value Per Share

Book Value per share was $56.83 as of June 30, 2026, compared to $49.59 as of June 30, 2025, an increase of $7.24 per share, or 14.60%. Tangible Book Value per share was $46.98 as of June 30, 2026, compared to $39.74 as of June 30, 2025, an increase of $7.24 per share or 18.22%.

Tangible Common Equity to Tangible Asset Ratio

The Corporation’s tangible common equity to tangible asset ratio was 9.22% at June 30, 2026, compared to 8.58% at June 30, 2025.

Net Interest Income

Net interest income for the second quarter of 2026 was a record $61.2 million, compared to $52.7 million reported for the same period of 2025, an increase of $8.5 million, or 16.2%. Interest income increased $10.0 million and interest expense increased $1.5 million year over year.

Net Interest Margin

The net interest margin for the quarter ended June 30, 2026, was 4.33% compared to the 4.15% reported at June 30, 2025.

Nonperforming Loans

Nonperforming loans as of June 30, 2026, were $27.1 million versus $9.8 million as of June 30, 2025. The ratio of nonperforming loans to total loans and leases was 0.61% as of June 30, 2026, versus 0.25% as of June 30, 2025. On a linked quarter basis, nonperforming loans were $28.5 million, and the ratio of nonperforming loans to total loans and leases was 0.64% as of March 31, 2026.

Credit Loss Provision

The 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 2025.

Net Charge-Offs

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

Allowance for Credit Losses

The Corporation’s allowance for credit losses as of June 30, 2026, was $50.9 million compared to $47.1 million as of June 30, 2025. The allowance for credit losses as a percent of total loans was 1.14% as of June 30, 2026, compared to 1.21% as of June 30, 2025. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased four basis points from 1.18% as of March 31, 2026.

Non-Interest Income

Non-interest income for the three months ended June 30, 2026 and 2025 was $10.6 million and $10.4 million, respectively.

Non-Interest Expense

Non-interest expense for the three months ended June 30, 2026, was $42.5 million compared to $38.3 million in 2025.

Efficiency Ratio

The Corporation’s efficiency ratio was 57.95% for the quarter ending June 30, 2026, versus 59.37% for the same period in 2025.

Income Taxes

Income tax expense for the three months ended June 30, 2026, was $5.3 million versus $4.2 million for the same period in 2025. The effective tax rate for 2026 was 18.89% compared to 18.58% for 2025.

About First Financial Corporation

First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 79 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. Additional information is available at www.first-online.bank.

Investor Contact:

Rodger A. McHargue

Chief Financial Officer

P: 812-238-6334

E: rmchargue@first-online.com


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
		2026			2026			2025			2026			2025
END OF PERIOD BALANCES
Assets		$	6,178,309		$	6,128,589		$	5,602,969		$	6,178,309		$	5,602,969
Deposits		$	4,833,399		$	4,842,386		$	4,662,889		$	4,833,399		$	4,662,889
Loans, including net deferred loan costs		$	4,467,897		$	4,423,921		$	3,896,563		$	4,467,897		$	3,896,563
Allowance for Credit Losses		$	50,938		$	52,338		$	47,087		$	50,938		$	47,087
Total Equity		$	675,785		$	655,288		$	587,668		$	675,785		$	587,668
Tangible Common Equity ^(a)		$	558,687		$	536,659		$	470,894		$	558,687		$	470,894

AVERAGE BALANCES
Total Assets		$	6,126,618		$	5,850,090		$	5,529,225		$	5,988,354		$	5,518,996
Earning Assets		$	5,799,062		$	5,523,970		$	5,213,220		$	5,661,516		$	5,203,849
Investments		$	1,256,470		$	1,263,714		$	1,244,208		$	1,260,092		$	1,255,254
Loans		$	4,452,394		$	4,160,366		$	3,877,246		$	4,306,380		$	3,859,499
Total Deposits		$	4,868,890		$	4,663,780		$	4,651,051		$	4,766,335		$	4,650,967
Interest-Bearing Deposits		$	3,987,492		$	3,718,070		$	3,843,143		$	3,852,781		$	3,840,411
Interest-Bearing Liabilities		$	554,935		$	480,073		$	269,338		$	517,504		$	265,256
Total Equity		$	663,602		$	663,896		$	576,288		$	663,749		$	570,515

INCOME STATEMENT DATA
Net Interest Income		$	61,222		$	56,933		$	52,671		$	118,155		$	104,646
Net Interest Income Fully Tax Equivalent ^(b)		$	62,739		$	58,397		$	54,091		$	121,137		$	107,464
Provision for Credit Losses		$	1,300		$	2,550		$	1,950		$	3,850		$	3,900
Non-interest Income		$	10,646		$	11,217		$	10,381		$	21,863		$	20,892
Non-interest Expense		$	42,529		$	40,879		$	38,276		$	83,408		$	75,035
Net Income		$	22,743		$	19,804		$	18,586		$	42,547		$	36,992

PER SHARE DATA
Basic and Diluted Net Income Per Common Share		$	1.91		$	1.67		$	1.57		$	3.58		$	3.12
Cash Dividends Declared Per Common Share		$	0.56		$	0.56		$	0.51		$	1.12		$	1.02
Book Value Per Common Share		$	56.83		$	55.10		$	49.59		$	56.83		$	49.59
Tangible Book Value Per Common Share ^(c)		$	45.96		$	45.13		$	38.78		$	46.98		$	39.74
Basic Weighted Average Common Shares Outstanding			11,892			11,885			11,851			11,888			11,847

(a)Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholder’s equity.

(b)Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest income fully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of tax exempt income by dividing tax exempt income by the net of tax rate of 75%.

(c)Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividing average tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assets from average shareholder’s equity.


Key Ratios		Three Months Ended						Six Months Ended
		June 30,		March 31,		June 30,		June 30,		June 30,
		2026		2026		2025		2026		2025
Return on average assets		1.48	%	1.35	%	1.34	%	1.42	%	1.34	%
Return on average common shareholder's equity		13.71	%	11.93	%	12.90	%	12.82	%	12.97	%
Efficiency ratio		57.95	%	58.72	%	59.37	%	58.33	%	58.46	%
Average equity to average assets		10.83	%	11.35	%	10.42	%	11.08	%	10.34	%
Net interest margin ^(a)		4.33	%	4.23	%	4.15	%	4.28	%	4.13	%
Net charge-offs to average loans and leases		0.24	%	0.15	%	0.18	%	0.20	%	0.18	%
Credit loss reserve to loans and leases		1.14	%	1.18	%	1.21	%	1.14	%	1.21	%
Credit loss reserve to nonperforming loans		188.21	%	183.89	%	480.72	%	188.21	%	480.72	%
Nonperforming loans to loans and leases		0.61	%	0.64	%	0.25	%	0.61	%	0.25	%
Tier 1 leverage		10.81	%	11.03	%	10.91	%	10.81	%	10.91	%
Risk-based capital - Tier 1		12.78	%	12.50	%	12.86	%	12.78	%	12.86	%

(a)	Net interest margin is calculated on a tax equivalent basis.


Asset Quality		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
		2026			2026			2025			2026			2025
Accruing loans and leases past due 30-89 days		$	12,726		$	19,882		$	22,303		$	12,726		$	22,303
Accruing loans and leases past due 90 days or more		$	3,030		$	938		$	1,917		$	3,030		$	1,917
Nonaccrual loans and leases		$	24,035		$	27,524		$	7,878		$	24,035		$	7,878
Other real estate owned		$	1,039		$	184		$	383		$	1,039		$	383
Nonperforming loans and other real estate owned		$	28,104		$	28,646		$	10,178		$	28,104		$	10,178
Total nonperforming assets		$	30,755		$	31,288		$	13,087		$	30,755		$	13,087
Gross charge-offs		$	4,084		$	2,945		$	2,928		$	7,029		$	6,169
Recoveries		$	1,384		$	1,418		$	1,230		$	2,802		$	2,624
Net charge-offs/(recoveries)		$	2,700		$	1,527		$	1,698		$	4,227		$	3,545


Non-GAAP Reconciliations		Three Months Ended June 30,
		2026			2025
($in thousands, except EPS)
Income before Income Taxes		$	28,039		$	22,826
Provision for credit losses			1,300			1,950
Provision for unfunded commitments			—			100
Pre-tax, Pre-provision Income		$	29,339		$	24,876


Non-GAAP Reconciliations		Six Months Ended June 30,
		2026			2025
($ in thousands, except EPS)
Income before Income Taxes		$	52,760		$	46,603
Provision for credit losses			3,850			3,900
Provision for unfunded commitments			—			100
Pre-tax, Pre-provision Income		$	56,610		$	50,603

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share data)


		June 30,			December 31,
		2026			2025

		(unaudited)
ASSETS
Cash and due from banks		$	96,633		$	130,369
Federal funds sold			—			475
Securities available-for-sale			1,168,202			1,149,526
Loans:
Commercial			2,424,325			2,375,344
Residential			1,316,108			986,955
Consumer			721,551			688,135
			4,461,984			4,050,434
(Less) plus:
Net deferred loan costs			5,913			4,869
Allowance for credit losses			(50,938)			(47,995)
			4,416,959			4,007,308
Restricted stock			23,475			18,536
Accrued interest receivable			28,320			27,762
Premises and equipment, net			88,313			78,582
Bank-owned life insurance			137,146			131,286
Goodwill			98,229			98,229
Other intangible assets			18,869			16,234
Other real estate owned			1,039			94
Other assets			101,124			97,725
TOTAL ASSETS		$	6,178,309		$	5,756,126

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing		$	998,972		$	916,473
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits			182,378			135,605
Other interest-bearing deposits			3,652,049			3,499,033
			4,833,399			4,551,111
Short-term borrowings			310,091			292,468
FHLB advances			291,461			188,208
Other liabilities			67,573			73,470
TOTAL LIABILITIES			5,502,524			5,105,257

Shareholders’ equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-16,206,804 in 2026 and 16,190,157 in 2025
Outstanding shares-11,891,896 in 2026 and 11,880,759 in 2025			2,022			2,021
Additional paid-in capital			147,844			147,442
Retained earnings			771,022			741,793
Accumulated other comprehensive income/(loss)			(91,065)			(86,681)
Less: Treasury shares at cost-4,314,908 in 2026 and 4,309,398 in 2025			(154,038)			(153,706)
TOTAL SHAREHOLDERS’ EQUITY			675,785			650,869
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	6,178,309		$	5,756,126

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME