# EDGAR Filing Document

**Accession Number:** 0000708955
**File Stem:** 0000708955-26-000028
**Filing Date:** 2026-2
**Character Count:** 724419
**Document Hash:** 4ab3b222d36edb2b02d76385a5e34bd4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000708955-26-000028.hdr.sgml**: 20260219

**ACCESSION NUMBER**: 0000708955-26-000028

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 160

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260219

**DATE AS OF CHANGE**: 20260219

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FIRST FINANCIAL BANCORP /OH/
- **CENTRAL INDEX KEY:** 0000708955
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 311042001
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34762
- **FILM NUMBER:** 26654898

**BUSINESS ADDRESS:**
- **STREET 1:** 255 EAST FIFTH STREET
- **STREET 2:** SUITE 900
- **CITY:** CINCINNATI
- **STATE:** OH
- **ZIP:** 45202
- **BUSINESS PHONE:** 8773229530

**MAIL ADDRESS:**
- **STREET 1:** 255 EAST FIFTH STREET
- **STREET 2:** SUITE 900
- **CITY:** CINCINNATI
- **STATE:** OH
- **ZIP:** 45202

?xml version='1.0' encoding='ASCII'? ffbc-20251231

<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K** 

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES ACT OF 1934

Commission File Number 001-34762

**FIRST FINANCIAL BANCORP.** 

(Exact name of registrant as specified in its charter)

---

| | | | |
|:---|:---|:---|:---|
| **Ohio** | **Ohio** | **Ohio** | **31-1042001** |
| (State of incorporation) | (State of incorporation) | (State of incorporation) | (I.R.S. Employer<br>Identification No.) |
| **255 East Fifth Street, Suite 900** | **Cincinnati** | **Ohio** | **45202** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: (877) 322-9530

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, No par value** | **FFBC** | **The NASDAQ Stock Market LLC** |

---

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

**None** 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☒ Yes&nbsp;&nbsp;&nbsp;&nbsp; ☐ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☐ Yes&nbsp;&nbsp;&nbsp;&nbsp; ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes&nbsp;&nbsp;&nbsp;&nbsp; ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes&nbsp;&nbsp;&nbsp;&nbsp; ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | 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. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes&nbsp;&nbsp;&nbsp;&nbsp;☒ No

The aggregate market value of the voting stock held by non-affiliates of the registrant, computed by reference to the sales price of the last trade of such stock as of June 30, 2025, was $2,296,993,000. (The exclusion from such amount of the market value of the shares owned by any person shall not be deemed an admission by the registrant that such person is an affiliate of the registrant.)

As of February 18, 2026, there were issued and outstanding 104,586,093 common shares of the registrant.

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

**Documents Incorporated by Reference:**

Portions of the registrant's Annual Report to Shareholders for the year ended December 31, 2025 (Exhibit 13) are incorporated by reference into Parts I, II and III. Portions of the registrant's definitive Proxy Statement for the Annual Meeting of Shareholders to be held on May 26, 2026 are incorporated by reference into Part III.

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

**<u>[FORM 10-K CROSS REFERENCE INDEX](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>**

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| | | | |
|:---|:---|:---|:---|
| | | | Page |
| **<u>[Part I](#ia7836e719ec34b79b2f8879125dfeda8_13)</u>** | <u>[Item 1](#ia7836e719ec34b79b2f8879125dfeda8_16)</u> | <u>[Business](#ia7836e719ec34b79b2f8879125dfeda8_16)</u> | <u>[1](#ia7836e719ec34b79b2f8879125dfeda8_16)</u> |
| | <u>[Item 1A](#ia7836e719ec34b79b2f8879125dfeda8_19)</u> | <u>[Risk Factors](#ia7836e719ec34b79b2f8879125dfeda8_19)</u> | <u>[13](#ia7836e719ec34b79b2f8879125dfeda8_19)</u> |
| | <u>[Item 1B](#ia7836e719ec34b79b2f8879125dfeda8_22)</u> | <u>[Unresolved Staff Comments](#ia7836e719ec34b79b2f8879125dfeda8_22)</u> | <u>[27](#ia7836e719ec34b79b2f8879125dfeda8_22)</u> |
| | <u>[Item 1C](#ia7836e719ec34b79b2f8879125dfeda8_25)</u> | <u>[Cybersecurity](#ia7836e719ec34b79b2f8879125dfeda8_25)</u> | <u>[27](#ia7836e719ec34b79b2f8879125dfeda8_25)</u> |
| | <u>[Item 2](#ia7836e719ec34b79b2f8879125dfeda8_28)</u> | <u>[Properties](#ia7836e719ec34b79b2f8879125dfeda8_28)</u> | <u>[29](#ia7836e719ec34b79b2f8879125dfeda8_28)</u> |
| | <u>[Item 3](#ia7836e719ec34b79b2f8879125dfeda8_31)</u> | <u>[Legal Proceedings](#ia7836e719ec34b79b2f8879125dfeda8_31)</u> | <u>[29](#ia7836e719ec34b79b2f8879125dfeda8_31)</u> |
| | <u>[Item 4](#ia7836e719ec34b79b2f8879125dfeda8_34)</u> | <u>[Mine Safety Disclosures](#ia7836e719ec34b79b2f8879125dfeda8_34)</u> | <u>[29](#ia7836e719ec34b79b2f8879125dfeda8_34)</u> |
| | | <u>[Supplemental Item - Executive Officers of the Registrant](#ia7836e719ec34b79b2f8879125dfeda8_37)</u> | <u>[30](#ia7836e719ec34b79b2f8879125dfeda8_37)</u> |
| **<u>[Part II](#ia7836e719ec34b79b2f8879125dfeda8_40)</u>** | <u>[Item 5](#ia7836e719ec34b79b2f8879125dfeda8_43)</u> | <u>[Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#ia7836e719ec34b79b2f8879125dfeda8_43)</u> | <u>[32](#ia7836e719ec34b79b2f8879125dfeda8_43)</u> |
| | <u>[Item 6](#ia7836e719ec34b79b2f8879125dfeda8_46)</u> | <u>[\[Reserved\]](#ia7836e719ec34b79b2f8879125dfeda8_46)</u> | <u>[32](#ia7836e719ec34b79b2f8879125dfeda8_46)</u> |
| | <u>[Item 7](#ia7836e719ec34b79b2f8879125dfeda8_49)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ia7836e719ec34b79b2f8879125dfeda8_49)</u> | <u>[32](#ia7836e719ec34b79b2f8879125dfeda8_49)</u> |
| | <u>[Item 7A](#ia7836e719ec34b79b2f8879125dfeda8_52)</u> | <u>[Quantitative and Qualitative Disclosures about Market Risk](#ia7836e719ec34b79b2f8879125dfeda8_52)</u> | <u>[32](#ia7836e719ec34b79b2f8879125dfeda8_52)</u> |
| | <u>[Item 8](#ia7836e719ec34b79b2f8879125dfeda8_55)</u> | <u>[Financial Statements and Supplementary Data](#ia7836e719ec34b79b2f8879125dfeda8_55)</u> | <u>[33](#ia7836e719ec34b79b2f8879125dfeda8_55)</u> |
| | <u>[Item 9](#ia7836e719ec34b79b2f8879125dfeda8_58)</u> | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ia7836e719ec34b79b2f8879125dfeda8_58)</u> | <u>[33](#ia7836e719ec34b79b2f8879125dfeda8_58)</u> |
| | <u>[Item 9A](#ia7836e719ec34b79b2f8879125dfeda8_61)</u> | <u>[Controls and Procedures](#ia7836e719ec34b79b2f8879125dfeda8_61)</u> | <u>[33](#ia7836e719ec34b79b2f8879125dfeda8_61)</u> |
| | <u>[Item 9B](#ia7836e719ec34b79b2f8879125dfeda8_67)</u> | <u>[Other Information](#ia7836e719ec34b79b2f8879125dfeda8_67)</u> | <u>[33](#ia7836e719ec34b79b2f8879125dfeda8_67)</u> |
| | <u>[Item 9C](#ia7836e719ec34b79b2f8879125dfeda8_70)</u> | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#ia7836e719ec34b79b2f8879125dfeda8_70)</u> | <u>[33](#ia7836e719ec34b79b2f8879125dfeda8_70)</u> |
| **<u>[Part III](#ia7836e719ec34b79b2f8879125dfeda8_73)</u>** | <u>[Item 10](#ia7836e719ec34b79b2f8879125dfeda8_76)</u> | <u>[Directors, Executive Officers, and Corporate Governance](#ia7836e719ec34b79b2f8879125dfeda8_76)</u> | <u>[34](#ia7836e719ec34b79b2f8879125dfeda8_76)</u> |
| | <u>[Item 11](#ia7836e719ec34b79b2f8879125dfeda8_79)</u> | <u>[Executive Compensation](#ia7836e719ec34b79b2f8879125dfeda8_79)</u> | <u>[34](#ia7836e719ec34b79b2f8879125dfeda8_79)</u> |
| | <u>[Item 12](#ia7836e719ec34b79b2f8879125dfeda8_82)</u> | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#ia7836e719ec34b79b2f8879125dfeda8_82)</u> | <u>[34](#ia7836e719ec34b79b2f8879125dfeda8_82)</u> |
| | <u>[Item 13](#ia7836e719ec34b79b2f8879125dfeda8_85)</u> | <u>[Certain Relationships and Related Transactions and Director Independence](#ia7836e719ec34b79b2f8879125dfeda8_85)</u> | <u>[34](#ia7836e719ec34b79b2f8879125dfeda8_85)</u> |
| | <u>[Item 14](#ia7836e719ec34b79b2f8879125dfeda8_88)</u> | <u>[Principal Accounting Fees and Services](#ia7836e719ec34b79b2f8879125dfeda8_88)</u> | <u>[34](#ia7836e719ec34b79b2f8879125dfeda8_88)</u> |
| **<u>[Part IV](#ia7836e719ec34b79b2f8879125dfeda8_91)</u>** | <u>[Item 15](#ia7836e719ec34b79b2f8879125dfeda8_94)</u> | <u>[Exhibits, Financial Statement Schedules](#ia7836e719ec34b79b2f8879125dfeda8_94)</u> | <u>[35](#ia7836e719ec34b79b2f8879125dfeda8_94)</u> |
| | <u>[Item 16](#ia7836e719ec34b79b2f8879125dfeda8_100)</u> | <u>[Form 10-K Summary](#ia7836e719ec34b79b2f8879125dfeda8_100)</u> | <u>[38](#ia7836e719ec34b79b2f8879125dfeda8_100)</u> |
| **<u>[Signatures](#ia7836e719ec34b79b2f8879125dfeda8_103)</u>** | | | <u>[39](#ia7836e719ec34b79b2f8879125dfeda8_103)</u> |

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

**FORWARD-LOOKING STATEMENTS**

Certain statements contained in this Annual Report on Form 10-K and the documents incorporated by reference that are not statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements specifically identified as forward-looking statements within this Annual Report on Form 10-K. In addition, certain statements in future filings by us with the SEC, in press releases, and in oral and written statements made by or with our approval, which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include: (i) projections of income or expense, earnings per share, the payment or non-payment of dividends, capital structure and other financial items; (ii) statements of our plans and objectives of our management or Board of Directors, including those relating to products or services or potential acquisition activity; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "likely," "expected," "estimated," "intends," "can," "may," "should," "potential," "believe," "could," "will," "desire," and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the forward-looking statements. We desire to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including those factors and events identified (i) in "Item 1A. Risk Factors" of this Annual Report on Form 10-K and (ii) in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of First Financial's 2025 Annual Report to Shareholders (included within Exhibit 13 to this Annual Report on Form 10-K and incorporated by reference into Item 7 of this Annual Report on Form 10-K).

Forward-looking statements speak only as of the date on which they are made, and, except as may be required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are qualified in their entirety by the foregoing cautionary statements.

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

**PART I**

**Item 1. Business.**

<u>First Financial Bancorp.</u>

First Financial Bancorp., an Ohio corporation (First Financial or the Company), was formed in 1982. First Financial is a mid-sized, regional bank holding company headquartered in Cincinnati, Ohio, which has elected to become a financial holding company. References in this Form 10-K to "we," "us" or "our" refer, as the context requires, to First Financial and its subsidiaries, collectively or to First Financial as the holding company.

First Financial engages in the business of commercial banking and other banking and banking-related activities through its wholly-owned subsidiary, First Financial Bank (the Bank), which was founded in 1863. Effective December 30, 2016, the Bank converted its charter to an Ohio state chartered bank from a nationally chartered bank.

The range of banking services provided by First Financial to individuals and businesses includes commercial lending, real estate lending and consumer financing. Real estate loans are loans secured by a mortgage lien on the real property of the borrower, which may either be residential property (one to four family residential housing units) or commercial property (owner-occupied and/or investor income producing real estate, such as apartments, shopping centers, or office buildings). Risk of loss related to lending activities is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. In addition, First Financial offers deposit products that include interest-bearing and noninterest-bearing accounts, time deposits and cash management services for retail and commercial customers. A full range of trust and wealth management services is also provided through First Financial's Wealth Management line of business.

Commercial and industrial loans are made to all types of businesses for a variety of purposes including, but not limited to, inventory, receivables and equipment. First Financial works with businesses to meet their shorter-term working capital needs while also providing long-term financing for their business plans. First Financial also offers lease and equipment financing primarily through its wholly-owned subsidiary Summit Funding Group, Inc. (Summit) (discussed below). Credit risk for lending activities is managed through standardized loan policies, established and authorized credit limits, centralized portfolio management and the diversification of market area and industries. The overall strength of the borrower is evaluated through the credit underwriting process and includes a variety of analytical activities, including the review of historical and projected cash flows, financial performance, financial strength of the principals and guarantors and collateral values, where applicable.

Commercial and industrial lending activities also include equipment and leasehold improvement financing for franchisees throughout the U.S., principally in the quick service and casual dining sector. The underwriting of these loans incorporates basic credit proficiencies combined with knowledge of select franchise concepts to measure the creditworthiness of proposed multi-unit borrowers. The focus is on a limited number of concepts that we believe have sound economics, lower closure rates, and higher brand awareness within specified local, regional or national markets. Loan terms for equipment are generally up to 84 months fully amortizing and up to 180 months on real estate-related requests.

First Financial also offers secured commercial financing throughout the U.S. through two wholly-owned subsidiaries of the Bank, Oak Street Funding LLC (Oak Street) and First Franchise Capital Corporation (First Franchise). Oak Street lends to the insurance industry, registered investment advisors, certified public accountants and indirect auto finance companies, while First Franchise lends to restaurant franchisees. Together, these niche lending activities are driven by acquisitions, ownership transitions and financing general working capital needs. The underwriting of Oak Street's loans involves analyses of collateral (through use of Oak Street's proprietary system) that consists of revenue, which is then continuously monitored by Oak Street throughout the life of the loans.

Commercial real estate loans are secured by a mortgage lien on the real property. The credit underwriting for both owner-occupied and investor income producing real estate loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, type of real estate and other analyses. Market diversification within First Financial's service area and industry diversification are other means by which First Financial manages the risk. First Financial does not have a significant exposure to residential builders and developers.

Certain residential real estate loans originated by the Bank conform to secondary market underwriting standards and are sold within a short timeframe to unaffiliated third parties. The Bank sells these loans with both servicing retained and servicing released, depending on pricing and other market conditions. The credit underwriting standards adhere to a required level of documentation, verifications, valuation and overall credit performance of the borrower. The underwriting of these loans

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includes an evaluation of these and other pertinent factors prior to the extension of credit. These underwriting standards increase the marketability and address the credit risk associated with the loans.

Consumer loans are primarily loans made to individuals, which may be secured or unsecured. These types of loans include new and used vehicle loans, second mortgages on residential real estate and unsecured loans. Risk elements in the consumer loan portfolio are primarily focused on the borrower's cash flow and credit history, which are key indicators of the ability to repay. A level of security is provided through liens on automobile titles and second mortgage liens, where applicable. Consumer loans are generally smaller dollar amounts than other types of lending and are made to a large number of customers, increasing diversification within the portfolio. Economic conditions that affect consumers in First Financial's markets have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality.

Home equity lines of credit consist mainly of revolving lines of credit secured by residential real estate. Home equity lines of credit are generally governed by the same lending policies and subject to the same credit risk mitigants as described previously for residential real estate loans.

Bannockburn Global Forex (Bannockburn), a division of the Bank, is an industry-leading capital markets firm based in Cincinnati, Ohio, that provides transactional currency payments, foreign exchange hedging, commodities hedging and other advisory products to closely held enterprises, financial sponsors and downstream financial institutions across the United States. Their primary focus is on small- and middle-market clients that have a need for tailored foreign exchange solutions. Bannockburn has a nationwide presence with offices in 11 locations throughout the U.S.

Agile Premium Finance, a division of the Bank, is among industry leaders in the premium finance lending space and is active in all 50 states. Headquartered in Lincolnshire, IL, Agile originates commercial loans for the payment of annual premiums for property and casualty insurance for businesses. Agile loans are secured by the unearned premium of the insurance policies and have an average original term of approximately ten months.

Information regarding statistical disclosure required by the Securities and Exchange Commission's Industry Guide 3 is included in "Table 4 - Statistical Information" of First Financial's 2025 Annual Report to Shareholders for the year ended December 31, 2025, and is incorporated herein by reference.

First Financial's executive office is located at 255 East Fifth Street, Suite 2900, Cincinnati, Ohio 45202, and the telephone number is (877) 322-9530. We maintain a website with the address <u>www.bankatfirst.com</u>. The information contained on our website is not included, a part of or incorporated by reference into this Annual Report on Form 10-K. First Financial makes available its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports, free of charge, as soon as reasonably practicable after filing with the Securities and Exchange Commission (SEC), through its website, www.bankatfirst.com under the "Investor Relations" link, under "Financial Reporting." Copies of such reports also can be found on the SEC's website at <u>www.sec.gov</u>.

<u>Human Capital</u>

As of December 31, 2025, First Financial had approximately 2,199 employees located primarily in the states of Ohio, Indiana, Kentucky and Illinois.

*Employee Wellbeing*. First Financial is committed to investing in our employees, recognizing that employee wellbeing is integral to our organizational culture and long-term success. The Company's approach to wellbeing is multifaceted, supporting employees and their families across five core areas: physical, financial, social, community, and purpose. Our comprehensive Wellbeing Program is designed to promote holistic health and engagement. The program offers a variety of incentives, including health savings account contributions, paid time off, and reimbursements, to encourage voluntary participation in activities such as annual physical exams, health-risk assessments, educational webinars, community service, financial assistance initiatives, and Company-sponsored fitness activities. Additionally, the program provides access to life coaching, mental health resources, and stress management support. In 2025, approximately 60% of eligible employees qualified for benefits under the Wellbeing Program, underscoring our commitment to fostering a healthy, engaged workforce. The Company views employee engagement as a foundational element in achieving strategic objectives and maintaining a high-performance culture.

*Employee Engagement.* First Financial recognizes that engaged and talented employees are vital to the success of the Company, its subsidiaries, and the clients and communities it serves. Since launching its engagement strategy in 2020, First Financial has partnered with a third party to foster a culture of engagement through comprehensive measurement, targeted manager training, coaching, and action planning. In July 2025, the Company conducted its sixth all-associate engagement

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survey, recording a significant increase in engagement compared to the prior year. This result underscores the effectiveness of initiatives such as manager accountability, coaching, training, regular team huddles, mentoring, career and leadership development, and updated action plans. Throughout 2025, First Financial expanded opportunities for associate communication and involvement, hosting monthly virtual town hall meetings and in-person market rallies across its footprint. These events enhanced transparency, reinforced strategic priorities, and celebrated contributions to the communities we serve. Additionally, supplemental pulse surveys provided valuable insight into employee needs, shaping future engagement initiatives. Reflecting the success of its engagement strategy, First Financial Bank was honored with the Gallup Exceptional Workplace Award in 2025.

*Compensation and Benefits.* First Financial offers employees competitive short-term and long-term compensation, a comprehensive set of benefits including health, dental and vision insurance, free or low-cost access to an independent provider of primary care clinics and behavioral health services, life and disability programs, paid time off, parental leave, product discounts and various expense reimbursement programs. First Financial also provides all eligible employees with an annual allocation to the First Financial Pension Plan of 5% of eligible annual pay. The pension allocation is 100% company-paid, fully-vested, portable, and provides a guaranteed benefit upon retirement. The Bank regularly reviews its total rewards practices to ensure compensation is equitable, taking into consideration such factors as experience, education, performance and market data.

*Talent Development.* First Financial focuses our training programs on career development, onboarding new associates, security, and compliance. While many training topics are required based on role, we offer a variety of topics associates can access for their own development. In 2025, we offered on-the-job skills, leadership, associate engagement, personal development, and career development training. Our commitment to security training comprises both physical and cybersecurity, and our compliance training centers around regulations, policies, and procedures. Similar to prior years, in 2025, First Financial delivered a comprehensive onboarding program for new managers and a high performing program for associates, investing in our future leaders.

<u>Subsidiaries</u>

A listing of each of First Financial's subsidiaries can be found in Exhibit 21 to this Form 10-K.

<u>Business Combinations</u>

*Agile Premium Finance.* On February 29, 2024, First Financial acquired Agile Premium Finance for $96.9 million in an all cash transaction. Agile originates commercial loans for the payment of annual property and casualty insurance for businesses. The loans are secured by the unearned premium of the policies and have an average term of approximately ten months. Upon completion of the transaction, Agile became a division of the Bank and continues to operate as Agile Premium Finance, taking advantage of its existing brand recognition within the insurance premium financing industry.

Operating results from the Agile acquisition have been included in the Consolidated Statements of Income since the acquisition date. The Agile transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. The fair value measurements of assets acquired and liabilities assumed were $97.8 million and $2.7 million, respectively. Acquisition accounting adjustments are considered final at December 31, 2025.

Goodwill arising from the Agile acquisition was $1.8 million and reflects the additional revenue growth expected with the Company's expansion into the insurance premium financing business. First Financial incurred $0.1 million and $0.2 million of expenses related to the Agile acquisition for the years ended December 31, 2025 and December 31, 2024, respectively. The goodwill arising from the Agile acquisition is deductible for income tax purposes. For further detail, see Note 10 – Goodwill and Other Intangible Assets.

*Westfield Bancorp. Inc*. On November 1, 2025, First Financial Bancorp acquired Westfield Bancorp, Inc., an Ohio corporation ("Westfield Bancorp"). Upon completion of the transaction, Westfield Bank, FSB, a federal savings bank ("Westfield Bank"), and a wholly owned subsidiary of Westfield Bancorp, merged into First Financial Bank. Pursuant to the Purchase Agreement, First Financial acquired all of the issued and outstanding equity securities of Westfield Bancorp in exchange for a cash payment of $260.0 million and 2,753,094 shares of First Financial common stock, equal to $64.4 million based on First Financial's stock price on the date the transaction, for a total purchase price of $324.4 million.

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This acquisition supplements First Financial's existing commercial banking and wealth management presence in Northeast Ohio by adding all of Westfield's retail banking locations and its commercial lending, insurance agency lending and private banking services. Operating results from the Westfield acquisition have been included in the Consolidated Statements of Income since the acquisition date.

The Westfield transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. The fair value measurements of assets acquired and liabilities assumed were $2.1 billion and $1.9 billion, respectively. Acquisition accounting adjustments are considered preliminary at December 31, 2025. These present value measurements are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available, and the measurement period ends in November 2026.

Goodwill arising from the Westfield acquisition was $91.9 million and reflects the additional revenue growth expected with the Company's expansion into the insurance premium financing business. The goodwill arising from the Westfield acquisition is nondeductible for income tax purposes. For further detail, see Note 10 – Goodwill and Other Intangible Assets.

First Financial incurred $5.8 million of expenses related to the Westfield acquisition for the year ended December 31, 2025.

*BankFinancial Corporation*. In August 2025, the Company entered into an Agreement and Plan of Merger with BankFinancial Corporation, a Maryland corporation ("BankFinancial Corporation"). The transaction was completed subsequent to the end of the year, effective January 1, 2026, at which time BankFinancial, National Association, a national banking association, and a wholly owned subsidiary of BankFinancial Corporation, merged into First Financial Bank. As of December 31, 2025, BankFinancial Corporation operated 17 full-service banking offices and had, on an unaudited basis, approximately $1.4 billion of total assets, $700.2 million of total loans and $1.2 billion of total deposits.

Pursuant to the merger agreement, each share of BankFinancial Corporation common stock was converted into 0.48

shares of First Financial common stock, or 5,980,878 total shares of First Financial common stock.

Given the transaction closed subsequent to December 31, 2025, the BankFinancial acquisition had no impact on First Financial's Consolidated Financial Statements as presented in this Annual Report on Form 10-K.

<u>Market and Competitive Information</u>

First Financial utilizes a community banking business model and serves a combination of metropolitan and non-metropolitan markets through its full-service banking centers primarily in Ohio, Indiana, Kentucky and Illinois. Market selection is based upon a number of factors, but markets are primarily chosen for their potential for growth, long-term profitability and customer reach. First Financial's goal is to develop a competitive advantage through a local market focus, building long-term relationships with clients to help them reach greater levels of financial success.

We also compete on a nationwide basis through Oak Street, which lends to the insurance industry, registered investment advisors, certified public accountants and indirect auto finance companies; First Franchise, which lends to restaurant franchisees; Bannockburn, which provides foreign exchange services to customers throughout the United States; and Summit, which provides equipment financing to commercial businesses in the United States and Canada.

The Company's markets support many different types of business activities, such as manufacturing, agriculture, education, healthcare and professional services. Within these markets, growth is projected to continue in key demographic groups and populations. First Financial's market evaluation includes demographic measures such as income levels, median household income and population growth. The Midwestern markets that First Financial serves have historically not experienced the level of economic volatility experienced in other areas of the country, although material fluctuations may occur.

First Financial believes that it is well positioned to compete in its markets. Smaller than super-regional and multi-national bank holding companies, First Financial believes that it can meet the needs of its markets through a local decision-making process and that it is better positioned to compete than smaller community banks that may have size or geographic limitations. First Financial's targeted customers include individuals and small to medium sized businesses within the Bank's geographic footprint. Through its diversified delivery systems of banking centers, ATMs, internet banking and telephone-based transactions, First Financial is able to meet the needs of its customers in an ever-changing marketplace.

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First Financial faces strong competition from financial institutions and other non-financial organizations. Its competitors include local and regional financial institutions, savings and loans and bank holding companies, as well as some of the largest banking organizations in the United States. In addition, other types of financial institutions, such as credit unions, offer a wide range of loan and deposit services that are competitive with those offered by First Financial. The consumer is also served by brokerage firms and mutual funds that provide checking services, credit cards, margin loans and other services similar to those offered by First Financial. Online lenders also create additional competition, particularly in the mortgage and consumer lending areas. Major consumer retail stores compete for loans by offering credit cards and retail installment contracts. It is anticipated that competition from other financial and non-financial services entities will continue and, for certain products and services, intensify. First Financial also competes with Financial Technology Companies ("FinTechs") which provide similar services to financial institutions while operating predominantly online and without the use of physical branch locations in a customer's market area. FinTechs also compete with financial institutions by embedding financial services into non-bank platforms which could reduce customer reliance on traditional banking services. Digital assets and cryptocurrencies also operate as competitors, as many of these digital assets and cryptocurrencies seek to provide payment functionality. Many customers either hold or may consider holding money that would typically be held in deposit accounts or investments in the form of digital assets or cryptocurrencies, which serves as competition for deposits.

**Supervision and Regulation**

First Financial and its subsidiaries operate within a comprehensive system of federal and state banking laws and regulations designed primarily to protect consumers, depositors, borrowers, and the Deposit Insurance Fund (DIF) of the Federal Deposit Insurance Corporation (FDIC), and to promote the stability and soundness of the U.S. banking system. These laws and regulations are not designed for the protection of First Financial shareholders. These laws and regulations govern, among other matters, capital adequacy, permissible activities, allowance for credit losses, lending practices, investment activities, interest rate practices, and disclosures in consumer financial products.

As a public company, First Financial also files reports with the SEC and is subject to its regulatory authority, including the disclosure and regulatory requirements of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), with respect to First Financial's securities, financial reporting and certain governance matters. Because First Financial's securities are listed on the Nasdaq Global Select Market ("Nasdaq"), it is subject to Nasdaq's rules for listed companies, including rules relating to corporate governance.

Certain elements of selected laws and regulations are described in more detail in the sections that follow. These descriptions are not intended to be complete and are qualified in their entirety by reference to the full text of the statutes and regulations described.

<u>Bank Holding Company Financial Holding Company Regulation</u>

First Financial is a bank holding company that has elected to become a financial holding company and is subject to supervision and examination by the Board of Governors of the Federal Reserve System (Federal Reserve) under the Bank Holding Company Act of 1956, as amended (BHCA). Under the BHCA, the Federal Reserve must approve, among other things, (i) the direct or indirect acquisition of ownership or control (as defined in the BHCA and Federal Reserve regulations) of a bank that is not already majority-owned by the financial holding company; (ii) the acquisition of all or substantially all of the assets of another bank or another financial or bank holding company; or (iii) a merger or consolidation with any other financial or bank holding company. In addition, the acquisition of a savings and loan association by First Financial would also require prior Federal Reserve approval.

As a financial holding company, First Financial may affiliate with securities firms and insurance companies and engage in other activities that are financial in nature and not otherwise permissible for a bank holding company, if: (i) the holding company is "well managed" and "well capitalized" and (ii) each of its subsidiary banks (a) is well capitalized under the Federal Deposit Insurance Corporation Act of 1991 prompt corrective action provisions, (b) is well managed, and (c) has at least a "satisfactory" rating under the Community Reinvestment Act (CRA). If any holding company fails to maintain these qualifications, material restrictions may be placed on its activities, and it could be required to divest subsidiaries engaged in activities not permissible for bank holding companies not operating as financial holding companies. If restrictions are imposed on the activities of a financial holding company, the existence of such restrictions may not be made publicly available pursuant to confidentiality regulations of the bank regulatory agencies. No regulatory approval is required under the BHCA for a financial holding company to acquire a company, other than a bank or savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the Federal Reserve Board. The Financial Services Modernization Act defines "financial in nature" to include: (i) securities underwriting, dealing and market making; (ii)

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sponsoring mutual funds and investment companies; (iii) insurance underwriting and agency; (iv) merchant banking; and (v) activities that the Federal Reserve Board has determined to be closely related to banking.

The Federal Reserve adopted a final rule in April 2020 clarifying presumptions used to determine when a company exercises control over another entity for BHCA purposes, enhancing transparency in control determinations. The rule established tiered presumptions of control based on ownership percentage, director representation, business relationships, and contractual rights.

The Federal Reserve has broad enforcement authority over bank holding companies, including the ability to impose civil money penalties, issue cease and desist or removal orders, and require divestitures of subsidiary entities. A bank holding company is expected to act as a source of financial strength to its subsidiary banks, and the Federal Reserve may limit dividends or require contributions of capital where necessary or prudent.

<u>Federal Reserve System Regulation</u>

Each subsidiary bank of a financial holding company is subject to certain restrictions on the maintenance of reserves against deposits, extensions of credit to the financial holding company and its subsidiaries, investments in the stock and other securities of the financial holding company and its subsidiaries and the taking of such stock and securities as collateral for loans to borrowers. Further, a financial holding company and its subsidiaries are prohibited from engaging in certain tying arrangements in connection with any extension of credit, lease or sale of property or furnishing of any services. Various consumer laws and regulations also affect the operations of these subsidiaries.

Depository institutions, including the Bank, are required to maintain reserves against certain deposit liabilities. In response to the COVID-19 pandemic, the Federal Reserve reduced reserve requirement ratios to 0% effective March 26, 2020, and this level remained unchanged as of December 31, 2025. The Federal Reserve retains authority to reinstate reserve requirements at any time.

<u>Economic Growth, Regulatory Relief and Consumer Protection Act</u>

The Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 modified or eliminated certain enhanced regulatory and compliance requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) for bank holding companies with consolidated assets below $100 billion. As a bank holding company with assets below this threshold, First Financial benefits from relief from certain enhanced regulatory reporting, stress testing, and capital planning requirements.

<u>Depository Institution Regulation</u>

The Bank, as a bank chartered under the laws of the State of Ohio and a member of the Federal Reserve Bank of Cleveland (Federal Reserve Bank), is subject to supervision and examination by the Federal Reserve Board and the Ohio Division of Financial Institutions (ODFI). The Bank's deposits are insured up to applicable legal limits by the DIF, which is administered by the FDIC and is subject to the provisions of the Federal Deposit Insurance Act, as amended (FDIA). The Bank is also subject to regulations of the Consumer Financial Protection Bureau (CFPB), which was established by the Dodd-Frank Act and has broad powers to adopt and enforce consumer protection regulations.

In November 2025, banking regulators announced that the focus of supervision and examination would shift from "processes, procedures and documentation" to material financial risks. The Bank anticipates that the shift in focus of banking regulators could result in more concise and directed examinations as a result of the more clear and limited directives.

<u>Regulatory Capital</u>

Financial institutions and their holding companies are required to maintain capital as a way of absorbing losses. The Federal Reserve Board has adopted risk-based capital guidelines for bank holding companies as well as state banks that are members of a Federal Reserve Bank. The guidelines provide a systematic analytical framework that makes regulatory capital requirements sensitive to differences in risk profiles among banking organizations, takes off-balance sheet exposures expressly into account in evaluating capital adequacy and incentivizes to holding liquid, low-risk assets. Capital levels as measured by these standards are also used to categorize financial institutions for purposes of certain prompt corrective action regulatory provisions.

In July 2013, the United States banking regulators approved final rules (the Basel III Capital Rules) implementing the Basel III framework set forth by the Basel Committee on Banking Supervision, as well as certain provisions of the Dodd-Frank Act. Community banking organizations, including First Financial and the Bank, began transitioning to the new rules when the new

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minimum capital requirements became effective on January 1, 2015. A capital conservation buffer (i.e. common equity) and additional deductions from common equity capital were phased in through January 1, 2019.

The Basel III capital rules include (i) a minimum Common Equity Tier 1 capital ratio of 7.0%, (ii) a minimum Tier 1 Capital ratio of 8.5%, (iii) a minimum total capital ratio of 10.5% and (iv) a minimum leverage ratio of 4.0%.

Common equity for the Common Equity Tier 1 capital ratio generally consists of common stock (plus related surplus), retained earnings, accumulated other comprehensive income (unless an institution elects to exclude such income from regulatory capital) and limited amounts of minority interests in the form of common stock, subject to applicable regulatory adjustments and deductions.

Tier 1 capital generally includes Common Equity Tier 1 (CET1) capital and Additional Tier 1 capital. CET1 capital generally consists of common stock and related surplus (net of treasury stock), retained earnings, accumulated other comprehensive income (subject to any applicable opt-out), and certain other comprehensive income elements, less required regulatory deductions and adjustments.

Additional Tier 1 capital generally includes qualifying noncumulative perpetual preferred stock and related surplus, as well as other qualifying Additional Tier 1 instruments, including limited amounts of minority interests. For bank holding companies that made a timely election under the regulatory capital transition provisions, certain trust preferred securities and cumulative perpetual preferred stock may continue to qualify as Additional Tier 1 capital under grandfathering provisions, subject to applicable limits. Tier 1 capital is reduced by required regulatory deductions and adjustments.

Tier 2 capital consists of qualifying subordinated debt, certain preferred stock instruments that do not qualify as Additional Tier 1 capital, limited amounts of minority interests not included in Tier 1 capital, and an eligible portion of the allowance for credit losses (or allowance for loan and lease losses, as applicable). Tier 2 capital is subject to specified eligibility criteria, phase-ins, regulatory limits, and required deductions.

The deductions from common equity tier 1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization's own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels).

Under the guidelines, capital is compared to the relative risk included in the balance sheet. To derive the risk included in the balance sheet, one of several risk weights is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Basel III Capital Rules also place restrictions on the payment of capital distributions, including dividends and stock repurchases, and certain discretionary bonus payments to executive officers if the Company does not hold a capital conservation buffer of at least 2.5% composed of common equity tier 1 capital compared to its minimum risk-based capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% at the beginning of the quarter.

Federal banking regulators have established regulations governing prompt corrective action to resolve capital deficient banks. Under these regulations, institutions that become under-capitalized are subject to mandatory regulatory scrutiny and limitations, which increase as capital continues to decrease. Each such institution is also required to file a capital plan with its primary federal regulator, and its holding company must guarantee the capital shortfall up to the lesser of 5% of the assets of the capital deficient institution at the time it becomes under-capitalized, or the amount necessary to restore bank to adequately capitalized status.

In accordance with the Basel III Capital Rules, in order to be "well-capitalized" under the prompt corrective action guidelines, a bank must have a common equity tier 1 capital ratio of at least 6.5%, a total risk-based capital ratio of at least 10.0%, a tier 1 risk-based capital ratio of at least 8.0% and a leverage ratio of at least 5.0%, and the bank must not be subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level or any capital measure. At December 31, 2025, the Bank met the capital ratio requirements to be deemed "well-capitalized."

A bank with a capital level that might qualify for well capitalized or adequately capitalized status may nevertheless be treated as though the bank is in the next lower capital category if the bank's primary federal banking supervisory authority determines that an unsafe or unsound condition or practice warrants that treatment. A bank's operations can be significantly affected by its capital classification under the prompt corrective action rules. For example, a bank that is not well capitalized generally is

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prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market without advance regulatory approval. These deposit-funding limitations can have an effect on the bank's liquidity. At each successively lower capital category, an insured depository institution is subject to additional restrictions. Under-capitalized banks are required to take specified actions to increase their capital or otherwise decrease the risks to the DIF. Bank regulatory agencies generally are required to appoint a receiver or conservator within 90 days after a bank becomes critically under-capitalized with a leverage ratio of less than 2.0%. The FDIA provides that a federal bank regulatory authority may require a bank holding company to divest itself of an under-capitalized bank subsidiary if the agency determines that divestiture will improve the bank's financial condition and prospects.

<u>Debit Card Interchange Fees</u>

The "Durbin Amendment" to the Dodd-Frank Act, also known as Regulation II limits the amount of interchange fees that banks with assets of $10 billion or more may charge to process electronic debit transactions. Under the Durbin Amendment and the Federal Reserve Board's implementing regulations, bank issuers which are not exempt may only receive an interchange fee from merchants that is reasonable and proportional to the cost of clearing the transaction. The maximum permissible interchange fee is equal to no more than $0.21 plus 5 basis points of the transaction value for many types of debit interchange transactions. A debit card issuer may also recover $0.01 per transaction for fraud prevention purposes if the issuer complies with certain fraud-related requirements established by the Federal Reserve Board. In addition, the Federal Reserve Board has rules governing routing and exclusivity that require issuers to offer two unaffiliated networks for routing transactions on each debit or prepaid product.

<u>Limitations on Dividends and Other Payments</u>

There are various legal limitations on the extent to which a subsidiary bank may finance or otherwise supply funds to its parent holding company. Under applicable federal and state laws, the Bank may not, subject to certain limited exceptions, make loans or extensions of credit to, or investments in the securities of, First Financial. A subsidiary bank is also subject to collateral security requirements for any loan or extension of credit permitted by such exceptions.

The Bank may not pay dividends out of its surplus if, after paying these dividends, it would fail to meet the required minimum capital levels established by the Federal Reserve Board. The amount of dividends payable by the Bank is also restricted if the Bank does not hold a capital conservation buffer as described above. In addition, the Bank must have the approval of the Federal Reserve Board and the ODFI if a dividend in any year would cause the total dividends for that year to exceed the sum of the Bank's net income for the current year and the retained earnings for the preceding two years, less required transfers to surplus or to fund the retirement of preferred stock. Under Ohio law, the Bank may pay a dividend from surplus only with the approval of First Financial (as the sole shareholder of the Bank) and the approval of the ODFI. Payment of dividends by the Bank may be restricted at any time at the discretion of its regulatory authorities, if such regulatory authorities deem such dividends to constitute unsafe and/or unsound banking practices or if necessary to maintain adequate capital.

The ability of First Financial to obtain funds for the payment of dividends, for the servicing of indebtedness and for other cash requirements is largely dependent on the amount of dividends that may be declared by the Bank. However, because the Federal Reserve Board expects First Financial to serve as a source of strength to the Bank, as discussed above, payment of dividends by the Bank may be restricted at any time at the discretion of the Federal Reserve Board if the Federal Reserve Board deems such dividends to constitute an unsafe and/or unsound banking practice.

The Federal Reserve Board has also issued a policy statement with regard to the payment of cash dividends by financial holding companies and other bank holding companies. The policy statement provides that, as a matter of prudent banking, a bank holding company should not maintain a rate of cash dividends unless its net income available to common shareholders over the past year has been sufficient to fully fund the dividends, and the prospective rate of earnings retention appears to be consistent with the bank holding company's capital needs, asset quality, and overall financial condition. Accordingly, a bank holding company generally should not pay cash dividends that exceed its net income or that can only be funded in ways that weaken the bank holding company's financial health, such as by borrowing. Under certain circumstances, a bank holding company must provide notice to the Federal Reserve Board of an intended dividend payment, to which the Federal Reserve Board might object if it determines the payment would be an unsafe or unsound practice.

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<u>Insurance of Accounts</u>

The FDIC maintains the DIF, which insures the deposit accounts of the Bank to the maximum amount provided by law. The general insurance limit is $250,000 per depositor, per ownership category, which is backed by the full faith and credit of the United States.

The FDIC assesses deposit insurance premiums on each insured institution quarterly based on risk characteristics of the institution. As a bank with assets of more than $10 billion, First Financial is subject to a deposit assessment based on a scorecard issued by the FDIC. This scorecard considers, among other things, the Bank's CAMELS rating, results of asset-related stress testing and funding-related stress, as well as its use of core deposits, among other things. Depending on the results of the Bank's performance under that scorecard, the total base assessment rate is between 2.5 and 42 basis points. The FDIC may also impose a special assessment in an emergency situation.

To address losses attributable to the systemic risk determination following the failures of Silicon Valley Bank and Signature Bank, the FDIC adopted a special assessment regime. In December 2025, the FDIC issued an interim final rule amending the collection framework for the special assessment to better align the assessment base with estimated losses, adjust the rate for the final collection quarter, and provide for potential offsets or final shortfall assessments after receivership termination. Estimated losses recoverable through the special assessment are approximately $16.7 billion as of September 30, 2025.

As of December 31, 2025, the Bank reported $7.4 billion in uninsured deposits.

The FDIC has authority to examine and require reporting from insured institutions and may terminate deposit insurance upon finding unsafe or unsound practices, violations of law, or material regulatory breaches.

<u>Community Reinvestment Act</u>

Under the CRA, FDIC-insured institutions are obligated, consistent with safe and sound banking practices, to help meet the credit needs of its entire community, including low and moderate income neighborhoods. The CRA requires the appropriate federal banking regulator, in connection with the examination of an insured institution, to assess the institution's record of meeting the credit needs of its community and to consider this record in its evaluation of certain applications to banking regulators, such as an application for approval of a merger or the establishment of a branch. An unsatisfactory rating may be used as the basis for the denial of an application and will prevent a bank holding company from making an election to become a financial holding company. As of the Bank's most recent CRA examination, it received a rating of "outstanding" under applicable CRA regulations.

Federal banking agencies had issued a final rule in October 2023 designed to modernize CRA regulations with applicability originally scheduled for 2026 and 2027. However, in light of litigation challenging the 2023 CRA rule's implementation, the agencies, on July 16, 2025, proposed rescinding the 2023 rule and reinstating the prior regulatory framework, substantially equivalent to the regulations in effect prior to the 2023 rule, with certain technical updates. While the proposal remains subject to notice and comment, the prior regulatory framework continues to govern CRA evaluations.

<u>Consumer Protection Regulation and CFPB Supervision</u>

The Bank is subject to extensive federal consumer protection laws and regulations enforced by the Consumer Financial Protection Bureau ("CFPB"), including, among others, the Consumer Financial Protection Act, the Consumer Leasing Act of 1976, the Electronic Fund Transfer Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Gramm-Leach-Bliley Act ("GLBA"), the Home Mortgage Disclosure Act of 1975, the Homeowners Protection Act of 1998, the Military Lending Act, the Real Estate Settlement Procedures Act of 1974, the Truth in Lending Act, and the Truth in Savings Act. As a bank with total assets exceeding $10 billion, the Bank is primarily examined by the CFPB with respect to consumer protection compliance. In 2025, the United States Congress reduced federal funding to the CFPB, and the agency's status is currently undergoing changes of leadership, goals, directive, and enforcement capabilities. The Bank will monitor the status of the CFPB and implement any necessary changes to its policies, procedures, and/or operations in response to any changes with the CFPB.

<u>Privacy Rules</u>

Federal banking regulators, as required under the GLBA, have adopted rules limiting the ability of banks and other financial institutions to disclose nonpublic information about consumers to non-affiliated third parties. The rules require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal

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information to non-affiliated third parties. The privacy provisions of the GLBA affect how consumer information is transmitted through diversified financial services companies and conveyed to outside vendors.

<u>Fiscal and Monetary Policies</u>

The earnings of banks, and, therefore, the earnings of First Financial (and its subsidiaries), are affected by the fiscal and monetary policies of the United States government and its agencies, including the Federal Reserve Board. An important function of the Federal Reserve Board is to regulate the national supply of bank credit in an effort to prevent recession and to restrain inflation. Among the procedures used to implement these objectives are open market operations in United States government securities, changes in the discount rate on member bank borrowings, and changes in reserve requirements on member bank deposits. These policies are used in varying degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits.

<u>Volcker Rule</u>

In December 2013, five federal agencies adopted a final regulation implementing the so-called Volcker Rule provision of the Dodd-Frank Act (the "Volcker Rule"). The Volcker Rule placed limits on the trading activity of insured depository institutions and entities affiliated with depository institutions, subject to certain exceptions. Such trading activity included the purchase or sale as principal of a security derivative, commodity future, option, or similar instrument in order to benefit from short-term price movements or to realize short-term profits. The Volcker Rule exempted trading in specified United States government, agency, state and/or municipal obligations. The Volcker Rule also excluded: (i) trading conducted in certain capacities, including as a broker or other agent, through a deferred compensation or pension plan, as a fiduciary on behalf of customers; (ii) trading to satisfy a debt previously contracted; (iii) trading under certain repurchase and securities lending agreements; and (iv) trading in connection with risk-mitigating hedging activities. Further, the Volcker Rule prohibited a banking entity from having an ownership interest in, or certain relationships with, a hedge fund or private equity fund, also known as "covered funds," subject to a number of exceptions.

On June 25, 2020, the federal bank regulatory agencies finalized a rule modifying the Volcker Rule's prohibition on banking entities investing in or sponsoring covered funds. The new rule permits certain banking entities to offer financial services and engage in other activities that do not raise concerns that the Volcker Rule was originally intended to address. To the extent First Financial engages in any of the trading activities or has any ownership interests in or relationship with any of the types of funds regulated by the Volcker Rule, First Financial believes that its activities and relationships comply with such rule, as modified through rule-making.

<u>Office of Foreign Assets Control Regulation</u>

The United States Treasury Department's Office of Foreign Assets Control ("OFAC") administers and enforces economic and trade sanctions against targeted foreign countries and regimes, under authority of various laws, including designated foreign countries, nationals and others. OFAC publishes lists of specially designated targets and countries. First Financial is responsible for, among other things, blocking accounts of, and transactions with, such targets and countries, prohibiting unlicensed trade and financial transactions with them and reporting blocked transactions after their occurrence. Failure to comply with these sanctions could have serious financial, legal and reputational consequences, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required. Regulatory authorities have imposed cease and desist orders and civil money penalties against institutions found to be violating these obligations. The Bank has established policies and procedures that it considers to be in compliance with the requirements and obligations of OFAC and the laws it regulates.

<u>Incentive Compensation</u>

Following the adoption of additional listing requirements in 2023 to comply with the Dodd-Frank Act and rules adopted by the SEC in October 2022, public companies are required to adopt, implement and disclose a "clawback" policy for incentive compensation payments that allows recovery of incentive compensation that was paid on the basis of erroneous financial information necessitating an accounting restatement due to material noncompliance with financial reporting requirements. This clawback policy is intended to apply to compensation paid within the three completed fiscal years immediately preceding the date the issuer is required to prepare a restatement and would cover all executives (including former executives) who received incentive awards. First Financial has adopted and implemented a clawback policy, which is included as Exhibit 97 to this Report.

<u>Transactions with Affiliates; Insider Loans</u>

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Sections 23A and 23B of the Federal Reserve Act and Federal Reserve Board Regulation W generally:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit the extent to which a bank or its subsidiaries may engage in "covered transactions" with any one affiliate to an amount equal to 10.0% of the bank's capital stock and surplus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit the extent to which a bank or its subsidiaries may engage in "covered transactions" with all affiliates to an amount equal to 20.0% of the bank's capital stock and surplus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require that all such transactions be on terms substantially the same, or at least as favorable to the bank or subsidiary, as those provided to a non-affiliate.

An affiliate of a bank is any company or entity that controls, is controlled by or is under common control with the bank. The term "covered transaction" includes the making of loans to the affiliate, the purchase of assets from the affiliate, the issuance of a guarantee on behalf of the affiliate, the purchase of securities issued by the affiliate and other similar types of transactions.

A bank's authority to extend credit to executive officers, directors and greater than 10.0% shareholders, as well as entities such persons control, is subject to Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder by the Federal Reserve Board. Among other things, these loans must be made on terms (including interest rates charged and collateral required) substantially similar to those offered to unaffiliated individuals or be made as part of a benefit or compensation program on terms widely available to employees and must not involve a greater than normal risk of repayment. In addition, the amount of loans a bank may make to these persons is based, in part, on the bank's capital position, and specified approval procedures must be followed in making loans which exceed specified amounts.

<u>Cybersecurity</u>

In March 2015, federal regulators issued two related statements regarding cybersecurity. One statement indicates that financial institutions should design multiple layers of security controls to establish several lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate customers accessing Internet-based services of the financial institution. The other statement indicates that a financial institution's management is expected to maintain sufficient business continuity planning processes to ensure the rapid recovery, resumption and maintenance of the financial institution's operations after a cyber-attack involving destructive malware. A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address rebuilding network capabilities and restoring data if the financial institution or its critical service providers fall victim to this type of cybersecurity-attack. If First Financial fails to observe the regulatory guidance, it could be subject to various regulatory sanctions, including financial penalties.

In November 2021, the FDIC, the OCC and the Federal Reserve Board issued a final rule that became effective in May 2022 requiring banking organizations that experience a computer-security incident to notify certain entities. A computer-security incident occurs when there is a violation or imminent threat of a violation to banking security policies and procedures, or when actual or potential harm to the confidentiality, integrity, or availability of an information system or the information occurs. The affected bank must notify its respective federal regulator of the computer-security incident as soon as possible and no later than 36 hours after the bank determines a computer-security incident that rises to the level of a notification incident has occurred. These notifications are intended to promote early awareness of threats to banking organizations and will help banks react to those threats before they manifest into larger incidents. This rule also requires bank service providers to notify their customers of a computer-security incident that has caused, or is reasonably likely to cause, a material service disruption or degradation for four or more hours.

State regulators have also been increasingly active in implementing privacy and cybersecurity standards and regulations. Recently, several states have adopted regulations requiring certain financial institutions to implement cybersecurity programs and providing detailed requirements with respect to these programs, including data encryption requirements. Many states have also recently implemented or modified their data breach notification and data privacy requirements. First Financial expects this trend of new state-level activity to continue and is actively monitoring developments in the states in which we conduct business.

On July 26, 2023, the SEC adopted final rules that require public companies to promptly disclose material cybersecurity incidents in a Current Report on Form 8-K and detailed information regarding their cybersecurity risk management, strategy, and governance on an annual basis in an Annual Report on Form 10-K. Companies are required to report on Form 8-K any cybersecurity incident they determine to be material within four business days of making that determination. See "ITEM 1C

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CYBERSECURITY" of Part 1 of this Report. These SEC rules, and any other regulatory guidance, are in addition to notification and disclosure requirements under state and federal banking law and regulations.

In the ordinary course of business, First Financial relies on electronic communications and information systems to conduct its operations and to store sensitive data. First Financial employs an in-depth, layered, defensive approach that leverages people, processes, third-party service providers, encryption and multi-factor authentication technology to manage and maintain cybersecurity controls. First Financial utilizes a variety of preventative and detective tools to monitor, block, and provide alerts regarding suspicious activity, as well as report on any suspected advanced persistent threats. Notwithstanding the strength of First Financial's defensive measures, the threat from cybersecurity-attacks is severe, attacks are sophisticated and increasing in volume, and attackers respond rapidly to changes in defensive measures. First Financial's systems and those of its customers and third party service providers are under constant threat and it is possible that First Financial could experience a significant event in the future. Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, in addition to the expanding use of internet banking, mobile banking and other technology-based products and services by us and our customers.

<u>Patriot Act</u>

A major focus of governmental policy on financial institutions in recent years has been aimed at combating money laundering and terrorist financing. In response to the terrorist events of September 11, 2001, the Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the "Patriot Act") substantially broadened the scope of United States anti-money laundering laws and regulations by imposing significant new compliance and due diligence obligations, creating new crimes and penalties, and expanding the extra-territorial jurisdiction of the United States. The Patriot Act gives the United States government powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements. Title III of the Patriot Act encourage information sharing among bank regulatory agencies and law enforcement bodies. Further, certain provisions of Title III impose affirmative obligations on a broad range of financial institutions. Among other requirements, Title III and related regulations require regulated financial institutions to establish a program specifying procedures for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity. The Bank has established policies and procedures that it considers to be in compliance with the requirements of the Patriot Act.

<u>State Law</u>

As an Ohio-chartered bank, the Bank is subject to regular examination by the ODFI. State banking regulation affects the Bank's internal organization and corporate governance, capital distributions, activities, acquisitions of other institutions and branching. State banking regulation may contain limitations on an institution's activities that are in addition to limitations imposed under federal banking law. The ODFI may initiate supervisory measures or formal enforcement actions, and under certain circumstances, it may take control of an Ohio-chartered bank.

<u>Future Legislation and Regulation</u>

Federal and state banking laws, regulations and regulatory policies are subject to ongoing review and revision by Congress, state legislatures and applicable regulatory agencies. In addition to the specific statutory and regulatory developments discussed above, the enactment of new legislation or regulations, changes to existing laws or supervisory policies, or changes in the interpretation or application thereof, may adversely affect First Financial, the Bank and their respective subsidiaries in ways that are difficult to anticipate. Such developments could impact First Financial and the Bank's business activities, financial condition and results of operations, and may increase regulatory reporting obligations and compliance costs. The ultimate substance, timing and effect of any pending or future legislative or regulatory initiatives, and the manner in which they may be implemented or applied, cannot be predicted.

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**Item 1A. Risk Factors.**

*The risks listed here are not the only risks we face. Additional risks that are not presently known, or that we presently deem to be immaterial, also could have a material effect on our financial condition, results of operations, business and prospects. You should carefully consider the following risk factors that may affect our financial condition, results of operations, business and prospects. You should carefully consider the following risk factors that may affect our financial condition, results of operations, business and prospects. Additionally, the aggregate impact of multiple risk factors, whether presently deemed material or immaterial, could similarly result in a material effect on our financial condition, results of operations, business and prospects. (See also "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional discussion of forward looking statements that could result in a material effect on our financial condition, results of operations, business and prospects.)*

**Risks Related to Economic and Market Conditions**

<u>Weakness in the economy and governmental policies, whether or not adopted in response to economic conditions such as inflation, may adversely affect us.</u> Our success depends, in part, on economic and political conditions, local and national, as well as governmental fiscal and monetary policies. Conditions such as inflation, deflation, recession, unemployment, changes in interest rates, tariffs, fiscal and monetary policy and other factors beyond our control may affect our deposit levels and composition, demand for loans and other products and services, the ability of borrowers to repay their loans and the value of the collateral securing the loans it makes. Economic turmoil in different regions of the world, as well as military conflicts such as those currently ongoing in Russia, Ukraine, the Middle East, China, and Venezuela affect the economy and stock prices in the United States, which can affect our earnings and capital and the ability of our customers to repay loans.

U.S. trade policies and international economic relationships continue to evolve, including potential changes to trade agreements and tariffs. Such changes may contribute to economic uncertainty and could negatively affect financial markets, supply chains, and the economic performance of the Company's customers and markets. Trade wars and tariffs can affect the economy and stock prices in the United States and can impact the costs of goods paid by customers, which can affect our deposit levels and concentration, the demand for loans and other products and services and the ability of our customers to repay outstanding loans, which could adversely affect our financial condition and the results of operations.

If the strength of the United States economy declines, this could result in, among other things, a deterioration of credit quality, altered consumer spending habits, decreased deposit balances maintained by our customers, or a reduced demand for credit, including a resultant effect on our loan portfolio and allowance for credit losses. Although the Federal Reserve eased monetary policy in 2025 with a series of rate cuts that brought the target federal funds range down to 3.50% – 3.75% by year-end, policymakers paused rate reductions in early 2026 and signaled patience in setting future policy as inflation remains elevated and labor market signals evolve. Despite these reductions, the future path of interest rates remains uncertain. Market and policy forecasts have not settled on expectations in the coming year. A scenario in which short-term interest rates remain elevated for longer than currently anticipated, or rise again in response to inflation or other macroeconomic developments, could increase stress on borrowers, potentially leading to higher delinquencies and charge-offs and adversely affecting our financial condition and results of operations. In addition, earnings sensitivity may be driven not only by rate levels but also by rate volatility and speed of rate changes, which may reduce hedge effectiveness and pressure margins.

There is no assurance that our non-impaired loans will not become impaired or that our impaired loans will not suffer further deterioration in value. A slowing labor market, declining savings, higher interest rates and sticky inflation could cause financial stress to consumers and slacken consumption. The fluctuations in national, regional and local economic conditions, including those related to local residential, commercial real estate and construction markets, may result in increased charge-offs and, consequently, reduce our net income. These fluctuations are not predictable, cannot be controlled and may have a material impact on our operations and financial condition even if other favorable events occur.

<u>Changes in leadership of the Federal Reserve Board of Governors may adversely affect us.</u> The Federal Reserve is the primary regulator of bank holding companies and financial holding companies, and is also responsible for regulating the money supply and credit conditions in the United States. The monetary policies and regulations of the Federal Reserve have had a significant effect on the operating results of commercial banks and are expected to continue to do so in the future.

The Federal Reserve is expected to go through a change of leadership in 2026. The term of the Chair of the Federal Reserve Board of Governors, Jerome Powell, expires on May 15, 2026. On January 30, 2026, Kevin Warsh was nominated as the

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successor to Chair Powell. Mr. Warsh must be confirmed by the United States Senate prior to becoming the Chair of the Federal Reserve Board of Governors.

A change in leadership may result in policy changes of the Federal Reserve related to the regulation of bank holding companies and financial holding companies, the money supply, and/or credit conditions in the United States. The effects of such policies upon our financial condition, results of operations, business and prospects cannot be predicted or determined.

<u>Changes in market interest rates or financial markets could affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital or liquidity.</u> Given the nature of our business, and the fact that most of our assets and liabilities are financial in nature, we tend to be sensitive to market interest rate movements and the performance of the financial markets. Our primary source of income is net interest income, which is the difference between the interest income generated by our interest-earning assets (consisting primarily of loans and, to a lesser extent, securities) and the interest expense generated by our interest-bearing liabilities. Prevailing economic conditions, fiscal and monetary policies and the policies of various regulatory agencies all affect market rates of interest and the availability and cost of credit, which, in turn, significantly affect financial institutions' net interest income. If the interest we pay on deposits and other borrowings increases at a faster rate than increases in the interest we receive on loans and investments, net interest income, and, therefore, our earnings, could be affected. Earnings and capital levels could also be affected if the interest we receive on loans and other investments falls more quickly than the interest we pay on deposits and other borrowings.

In addition to the general impact of the economy, changes in interest rates or in valuations in the debt, equity, commodities or currency markets could directly impact us in one or more of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the yield on earning assets and rates paid on interest bearing liabilities may change in disproportionate ways;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the value of certain balance sheet and off-balance sheet financial instruments or the value of equity investments that we hold could decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the value of assets for which we provide processing services could decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the bank's profitability may decline due to negative impacts of increased market volatility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insured and/or uninsured depositors may seek alternative investments, making the bank more reliant on alternative, more expensive funding sources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the demand for loans and refinancings may decline, which could negatively impact income related to loan originations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the reset on interest rates on adjustable rate mortgages could cause financial strain on borrowers, making them more likely to default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent we access capital markets to raise funds to support our business, such changes could affect the cost of such funds or the ability to raise such funds.

During 2025, the Federal Reserve implemented a series of rate cuts that decreased the target fed funds rate by 75 basis points. Although we have implemented procedures we believe will prepare us for the potential effects of changes in interest rates on our results of operations, these procedures may not always be successful. In addition, any substantial or prolonged change in market interest rates could affect our financial condition, results of operations and liquidity.

<u>Local economic factors may adversely affect our business and the results of our operations.</u> Our community banking business model and local market focus has led to a concentration in the markets in which we operate, namely Indiana, Ohio, Kentucky and Illinois. As a result of this geographic concentration, our results of operations are largely dependent on economic conditions in these local markets. Changes to the economic conditions in these local markets, which may be different from the national economic conditions, may adversely affect our financial condition, results of operations, and business prospects.

<u>Our loan portfolio and investments in mortgage-backed securities consist of a significant number of loans secured by real estate and other assets, the value of which can be affected by national and local market conditions.</u> We offer a variety of secured loans, including commercial lines of credit, commercial term loans, real estate, construction, home equity, consumer and other loans and hold as investments a number of mortgage-backed securities, including collateralized mortgage obligations. Many of our loans are secured by real estate (both residential and commercial) within our market area. A major change in the real estate market, such as deterioration in the value of collateral, or in the local or national economy, could affect our customers' ability to pay these loans, which in turn could impact our results of operations and financial condition. Additionally, increases in unemployment also may affect the ability of certain clients to repay loans and the financial results of commercial clients in localities with higher unemployment, may result in loan defaults and foreclosures and may impair the value of our collateral. Increases in loan defaults may also lead to additional losses in our investments in mortgage-backed securities, including collateralized mortgage obligations.

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Loan defaults and foreclosures are unavoidable in the banking industry, and we try to limit our exposure to this risk by carefully adhering to our credit risk standards and actively and carefully monitoring our extensions of credit throughout the lifespan of a loan.

Classified asset balances increased $11.4 million, or 5.1%, to $235.5 million at December 31, 2025 from $224.1 million at December 31, 2024. The change in classified assets during 2025 included $20.4 million of loans rated substandard or worse acquired in the Westfield transaction. Absent the impact from Westfield, classified assets declined $9.0 million during 2025 as resolutions of classified assets outpaced downward credit migration during the period. Any increases in our classified asset balances and/or an increase in loan defaults may also increase our costs associated with servicing these loans, foreclosing on properties and costs of property maintenance on foreclosed properties. We cannot fully eliminate credit risk, and as a result, credit losses may increase in the future and impact our financial condition and results of operations.

<u>Weakness in the secondary market for residential mortgage loans could affect our financial condition and results of operations.</u> Declines in demand for residential mortgage loans, changed government laws or regulations or other disruptions in the secondary market for residential mortgage loans can limit the market for and liquidity of many mortgage loans that we seek to sell in the secondary market. The effects of these disruptions to the secondary market for residential mortgage loans, as well as reductions in residential real estate market prices and declining home sales, could affect the value of collateral securing mortgage loans that we hold, income generated from mortgage loan originations and profits on sales of mortgage loans in the secondary market. Such conditions could result in higher losses or charge-offs in our mortgage loan portfolio and other lines of business. Declines in real estate values, home sale volumes, financial stress on borrowers as a result of job losses, interest rate resets on adjustable rate mortgage loans or other factors, either independently or in the aggregate could have further effects on borrowers that could result in higher delinquencies and greater charge-offs in future periods, which would affect our financial condition, results of operations, business and/or prospects. A decline in home values or overall economic weakness could also have an impact upon the value of real estate or other assets which we own upon foreclosing a loan and our ability to realize value on any subsequent sale of such assets.

<u>Our financial instruments carried at fair value expose us to certain market risks.</u> We maintain an available-for-sale investment securities portfolio, which includes assets with various types of instruments and maturities. At times, we also maintain certain assets that are classified and accounted for as trading assets. The changes in fair value of available-for-sale securities are recognized in shareholders' equity as a component of other comprehensive income, and these securities typically decrease in value when market interest rates rise. The changes in fair value of financial instruments classified as trading assets are carried at fair value with changes in fair value recognized in earnings. The fair value of financial instruments carried at fair value is exposed to market risks related to changes in interest rates and market liquidity. We manage the market risks associated with these instruments through broad asset/liability management strategies. Changes in the market values of these financial instruments or conditions that would require us to dispose of these investment securities earlier than anticipated could have a material impact on our financial condition or results of operations. We may classify additional financial assets or financial liabilities at fair value in the future.

**Risks Related to Our Business**

<u>When we loan money, commit to loan money or enter into a letter of credit or other contract with a counterparty, we incur credit risk, or the risk of loss if our borrowers do not repay their loans or our counterparties fail to perform according to the terms of their contracts.</u> Since lending is one of our primary business activities, the credit quality of our portfolio can have a significant impact on our earnings. We estimate and establish reserves for credit risks we reasonably expect to occur over the expected life of our loan portfolio. This process, which is critical to our financial results and condition, requires difficult, subjective and complex judgments, including reviews of economic conditions and how these economic conditions might impair the ability of our borrowers to repay their loans. As is the case with any such assessments, there is always the chance that we will fail to identify the proper factors, that we will fail to accurately estimate the impacts of factors that we identify, or that we fail to accurately estimate the aggregate impacts of factors that we identify, all of which could impact the credit quality of our portfolio and have an impact on the results of operations. In addition, large loans, letters of credit and contracts with individual counterparties in our portfolio magnify the credit risk that we face, as the impact of large borrowers and counterparties not repaying their loans or performing according to the terms of their contracts has a disproportionately significant impact on our credit losses, reserves and the results of operations. Certain segments of commercial real estate, including office properties, continue to experience elevated vacancy rates and refinancing pressure, which may reduce collateral values and increase default risk.

<u>The information that we use in managing our credit risk may be inaccurate or incomplete, which may result in an increased risk of default and otherwise have an effect on our financial condition, results of operations and business.</u> In deciding whether to extend credit or enter into other transactions with clients and counterparties, we may rely on information furnished by or on

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behalf of clients and counterparties, including financial statements and other financial information. We also may rely on representations of clients and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. Nonetheless, in the near-term, sustained interest rates along with elevated costs are expected to weigh on firms' profit margins. Although we regularly review our credit exposure to specific clients and counterparties and to specific industries that we believe may present credit concerns, default risk may arise from events or circumstances that are difficult to detect, such as fraud. Moreover, such circumstances, including fraud, may become more likely to occur or be detected in periods of general economic uncertainty. We may also fail to receive full information with respect to the risks of a counterparty. In addition, in cases where we have extended credit against collateral and/or guarantees, we may find that we are under-secured, for example, as a result of sudden declines in market values that reduce the value of collateral or due to fraud with respect to such collateral or the ability of a guarantor to fulfill its financial obligations. If such events or circumstances were to occur, it could result in a potential loss of revenue and increase in recovery costs which could have an effect on our financial condition, results of operations and business.

<u>Our allowance for credit losses may prove to be insufficient to absorb losses in our loan portfolio or may produce volatility in provision expense and earnings.</u> We maintain an allowance for credit losses that we believe is a reasonable estimate of the expected losses over the expected life of the loan portfolio based on a CECL model as of the corresponding balance sheet date. However, our allowance for credit losses may not be sufficient to cover actual credit losses, and future provision for credit losses could materially affect our operating results. The accounting measurements related to the allowance for credit losses require significant estimates which are subject to uncertainty and change related to new information and changing circumstances.

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. CECL estimates are sensitive to economic forecast assumptions, including unemployment, interest rates, and property valuations. Changes in forecasts may produce volatility in provision expense and earnings. We adjust our quantitative model, as necessary, to reflect conditions not already considered by such model. Our estimates of the risk of loss and amount of loss on any loan are complicated by the significant uncertainties surrounding our borrowers' abilities to successfully execute their business models through changing economic environments, competitive challenges and other factors. Because of the degree of uncertainty with respect to assumptions in our models and susceptibility of these factors to change, our actual losses may vary from our current estimates.

In addition, bank regulators periodically review our allowance for credit losses and may require us to increase our provision for credit losses or recognize further loan charge-offs. The accounting guidance requires banks to record, at the time of origination, credit losses expected throughout the life of the asset on loans, leases and held-to-maturity debt securities. Under the CECL model, we are required to use historical information, current conditions and reasonable and supportable forecasts to estimate the expected credit losses. If the methodologies and assumptions we use in the CECL model prove to be incorrect, or inadequate, the allowance for credit losses may not be sufficient, resulting in the need for additional allowance for credit losses to be established, which could have a material adverse impact on our financial condition and results of operations.

As a result of CECL, our financial results may be negatively affected as soon as weak or deteriorating economic conditions are forecasted and alter our expectations for credit losses. In 2025, we recorded $36.5 million of provision expense on loans and leases due to net charge-offs and loan portfolio growth. Depending upon future circumstances, as well as broader macroeconomic shifts, we may incur significant provision expense for credit losses in future periods.

<u>Our foreign exchange business plays a crucial role in facilitating various financial transactions, including foreign exchange, interest rate, and commodity hedging for our commercial clients and is largely dependent upon a small number of large clients and market volatility that could adversely affect our financial condition, results of operations, and reputation.</u> In August 2019, First Financial acquired Bannockburn, which engages in various capital markets activities as part of its matched book business encompassing foreign exchange, interest rate, and commodity hedging transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Concentration risk: Bannockburn's business model relies, to some extent, upon a small number of large clients. The loss of one or more of these large clients would adversely affect the revenue derived from Bannockburn. Revenue concentration among a limited number of counterparties may make earnings from Bannockburn more volatile and we may see a negative impact on our financial condition or results of operations should we lose or see reduced activity from any of these large clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Market risk: Foreign currency and commodities transactions expose us to market risk, including fluctuations in foreign exchange rates, interest rates, and commodity prices. These fluctuations could result in financial losses or decreased revenues or additional liquidity needs if we fail to accurately predict or manage these risks. Foreign currency and commodities transactions historically increase as market volatility increases. Sustained periods of stability in global financial markets could also adversely affect Bannockburn's revenue.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Credit risk: We are exposed to credit risk through our dealings with counterparties in derivative transactions. While we have risk management policies and procedures in place to manage credit risk, the failure of counterparties to fulfill their obligations could lead to financial losses or damage to our reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Liquidity risk: The nature of our capital markets operations requires us to maintain sufficient liquidity to meet our obligations, including margin calls and settlement requirements. Sudden increases in collateral or margin requirements during periods of market volatility may create additional liquidity needs, which could strain our resources and negatively impact our financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regulatory risk: Our capital markets activities are subject to extensive regulatory oversight and compliance requirements. Changes in regulations or regulatory enforcement actions could increase our compliance costs, restrict our ability to operate certain businesses, or result in fines or penalties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operational Risk: We face operational risks, including systems failures, errors, or disruptions, that could disrupt our capital markets activities and result in financial losses or harm to our reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legal risk: Our capital markets operations are subject to legal risks, including litigation, regulatory investigations, and disputes with clients or counterparties. Adverse legal outcomes could result in financial losses, reputational damage, or regulatory sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Political risk: Our foreign exchange business is also susceptible to the risk that political events or changes in government policies, such as renegotiated trade agreements or tariffs, could negatively impact the bank's matched book business. For additional discussion related to political risks, please see the Risk Factor titled "*Weakness in the economy and governmental policies, whether or not adopted in response to economic conditions such as inflation, may adversely affect us.*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Currency Risk: Recent depreciation and volatility in the U.S. dollar have increased uncertainty in foreign exchange markets, which may affect transaction volumes, hedging activity, client demand, and the value of positions managed within Bannockburn's matched book operations. Continued currency volatility or abrupt shifts in exchange rates could result in reduced revenues, valuation impacts, or increased liquidity and collateral requirements, adversely affecting our financial condition and results of operations.

<u>We rely on other companies to provide key components of our business infrastructure, creating risks of failures or disruptions by such companies and cybersecurity incidents which may involve our customers' information.</u> Digitalization and technological innovation continue to advance the trend of banks outsourcing technology operations and entering partnerships or other arrangements with third parties. Third parties provide key components of our business infrastructure, such as processing and internet connections and network access. These vendors also provide services that support our operations, including the storage and processing of sensitive consumer and business customer data, as well as our sales efforts. Any disruption in such services provided by these third parties, any failure of these third parties to handle current or higher volumes or any failure of third parties to perform in accordance with their agreements with us could affect our ability to deliver products and services to clients and to efficiently and effectively conduct our business. Technological or financial difficulties of a third-party service provider could affect our business to the extent such difficulties result in the interruption or discontinuation of services provided by that party, and could lead to potential regulatory issues, reputational harm and impact the results of our operations.

In addition, a cybersecurity breach of a vendor's system may result in theft of our data or disruption of business processes. Increased use of artificial intelligence (AI) by vendors can further increase the risks of a cybersecurity breach, as discussed in the Risk Factor titled "*The increased use and capacity of AI, Generative AI, large language models (LLMs), and AI agents by customers, vendors and competitors increases risks to our business.*" A material breach of customer data security at a service provider's site may negatively impact our business reputation and cause a loss of customers, result in increased expense to contain the event and/or require that we provide credit monitoring services for affected customers, result in regulatory fines and sanctions, and possibly litigation. We may experience liability to our customers for losses arising from a breach of a vendor's data security system. We rely on our outsourced service providers to implement and maintain prudent cybersecurity controls. Furthermore, we may not be insured against all types of losses as a result of third-party failures, and our insurance coverage may be inadequate to cover all losses resulting from system failures or other disruptions. Failures in our business infrastructure could interrupt our operations, cause reputational harm, increase the costs of doing business and impact the results of our operations. In certain cases, a limited number of vendors provide critical or specialized services, and disruption, pricing changes, financial stress, or service degradation at one of these providers could have a disproportionate impact on our operations. The Company's business continuity and disaster recovery planning addresses disruption in critical vendors.

<u>Unauthorized use or disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, or other breaches in the security of our systems could harm our business.</u> As part of our business, we collect, process, and retain sensitive and confidential client and customer information on behalf of our subsidiaries and other third parties. Despite the security measures we have in place, our facilities and systems, and those of our third party service providers, may be vulnerable to security breaches, acts of fraud, acts of vandalism, computer viruses, malware, ransomware, theft of information, misplaced or lost data, programming and/or human errors, or other similar events.

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Ransomware actors continue to affect the sector by targeting banks and their third parties. These attacks have the potential to affect banks and market operations by rendering critical data inaccessible as well as by threatening the confidentiality of customer data obtained by these bad actors or through data leaks. If information security is breached, information can be lost or misappropriated, resulting in financial loss or costs to us or damages to others. Our systems can be rendered inoperable, resulting in our inability to provide service to our customers. Any security breach involving the misappropriation, loss, destruction or unauthorized disclosure of confidential customer information, whether by us or by our vendors, could severely damage our reputation, lead to a loss of customers, expose us to the risk of litigation and liability, result in regulatory fines, penalties, or orders, disrupt our operations and have a material effect on our business, our financial condition and the results of our operations.

Cybersecurity risk management programs are expensive to maintain and mitigate cybersecurity risks, but will not protect us from all risks associated with maintaining the security of customer data and our proprietary data from external and internal intrusions, disaster recovery and failures in the controls used by our vendors. Employee error or misconduct may result in failure to implement policies and procedures designed to avoid risks. Moreover, as technology and cyberattacks change over time, we must continually monitor and change systems to guard against new threats, while also training our employees to remain diligent against cyberattacks. We may not know of and be able to guard against a new threat until after an attack has occurred. Congress and the legislatures of states in which we operate regularly consider legislation that would impose more stringent data privacy requirements which may result in increased costs of compliance and impact the results of our operations.

Any of these occurrences could result in our diminished ability to operate one or more of our businesses, potential civil liability, reputational damage and regulatory intervention in the form of requirements, restrictions and penalties, which could affect our financial condition, results of operations and business.

<u>We rely on our systems, employees and certain counterparties, and certain failures or actions could affect our operations.</u>

We are exposed to many types of operational risks, some of which are outside of our control, including, but not limited to, the risk of fraud or theft by employees and outsiders, clerical and record-keeping errors, computer/telecommunications systems malfunctions, and risks regarding the operations of our third party vendors. Our business is dependent on our ability to process a large number of increasingly complex transactions. If any of our financial, accounting or other data processing or technological systems fail or have other significant shortcomings, our business could be affected. We depend on internal systems and outsourced technology to support these data storage and processing operations, as well as harm our reputation amongst our customers. Our inability to use or access these information systems at critical points in time could unfavorably impact the timeliness and efficiency of our business operations. In recent years, some banks have experienced denial of service attacks in which individuals or organizations flood a bank's website with extraordinarily high volumes of traffic, with the goal and effect of disrupting the ability of the bank to process and/or communicate information about transactions. These, and similar types of attacks and/or breaches of data, could result in losses in the form of lost revenues, costs to remediate, reputational harm, litigation losses and other impacts to our financial condition and results of operations.

Additionally, we could be affected if one of our employees or a third-party service provider causes a significant operational breakdown or failure, either as a result of human error or where an individual purposefully sabotages or fraudulently manipulates our operations or systems. We are also at risk of an impact on our systems and operations from natural disasters, accidents outside of our control, terrorism, international hostilities, and other exceptional or outlier events outside of our control. Increasing electricity demand, including from data centers and industrial activity, is placing pressure on regional power grid operators, including PJM Interconnection LLC, which serves many of the markets in which we operate, and prolonged or widespread power disruptions could adversely affect our facilities, third-party service providers, customers, and business continuity. Such events can impact operational systems operated by us or others on which we rely and can result in an impact to our business operations and subsequent impacts to our financial condition and results of operations.

In addition, continuing cyberattacks and current geopolitical tensions highlight the importance of heightened threat monitoring and safeguarding against disruptive attacks targeting the financial sector. There have been instances where financial institutions have been victims of fraudulent activity in which criminals pose as customers to initiate wire and automated clearinghouse transactions out of customer accounts. There have also been increased instances of scammers who target and socially engineer clients to gain access to their accounts to conduct transactions or induce customers to authorize fraudulent transactions for the scammers' benefit. Although we have commercially reasonable policies and procedures in place to verify the authenticity of our customers, we cannot assure that such policies and procedures will prevent all fraudulent transfers. AI tools may also be utilized by bad actors to increase the sophistication and speed of cyberattacks and fraud attempts. For more information on the risks associated with AI, see the Risk Factor titled "*The increased use and capacity of AI, Generative AI, large language models (LLMs), and AI agents by customers, vendors and competitors increases risks to our business.*"

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The fraudulent activity and cybersecurity risks can result in financial liability and litigation risk to us and/or our customers, as well as harm to our reputation and negative impacts on our financial condition, results of our operations, business and prospects.

<u>The increased use and capacity of AI, Generative AI, large language models (LLMs), and AI agents by customers, vendors and competitors increases risks to our business.</u> The use and capacity of AI, Generative AI, LLMs and AI agents has increased in the past year and is being employed by customers, competitors, and vendors at increased rates. Many of these tools can increase cybersecurity risks, require specific technical expertise to operate, or expose information through open source code. These tools are being used by parties in various capacities, and employing these tools without sufficient knowledge or expertise of the power and risks associated with the tools can increase risks for the users. These tools are relatively new and there is potential of continued and/or increased adoption of legal and regulatory frameworks governing the use of these tools, by law, our primary banking regulators, other federal or state regulatory bodies, or other self-regulatory organizations.

The use of these tools by customers can increase the risk of exposure to their personal information and/or banking credentials which can result in increased opportunities for bad actors to initiate fraudulent activity with respect to a customer's account(s). While we have implemented commercially reasonable policies and procedures to protect against fraudulent activity on the accounts of our customers, we cannot assure that such policies and procedures will prevent all fraudulent activity or capture activity that has been inadvertently been authorized by the customer. Such activity can result in financial liability and litigation risk to us and/or our customers, as well as harm to our reputation and negative impacts on our financial condition, results of our operations, business and prospects.

The use of these tools by vendors engaged by us can increase the risk of unauthorized use or disclosure of sensitive or confidential client or customer information and cyberattacks. In conducting due diligence of our vendors, we request detailed information regarding how the vendor uses these tools and attempt to mitigate risks related to exposure by agreement with vendors. While these processes seek to mitigate risks associated with vendor use of these tools, we cannot eliminate this risk. Vendors may employ tools without realizing the risks associated with the tools, may have employees that use unauthorized technology tools that were not disclosed to us during our diligence process, or the tools that were disclosed may implement new services, features, or technologies that increase the exposure to cybersecurity risks. If a vendor engaged by us experienced a cyberattack related to use of these tools, or deliberately or inadvertently exposed sensitive or confidential client or customer information, we may experience financial liability and litigation risk to us and/or our customers, as well as harm to our reputation and negative impact on our financial condition, results of operations and business. Additionally, if any vendors incur additional costs related to any legal or regulatory framework adopted governing the use of such tools, we may face increased costs to engage such vendor, which could impact or financial condition and results of operations if we continue to use such vendor or as a result of costs incurred to find an alternative vendor.

The use of these tools by competitors may impair our ability to attract or retain business if our competitors are successful in their implementation. Failure to keep pace with these evolving technologies can have a negative impact on our financial condition, results of operations, business and prospects. In addition, if our competitors suffer any reputational harm as a result of the implementation of these evolving technologies, it could have a negative effect on the financial services industry as a whole and have a negative impact on our financial condition, results of operations, business and prospects. The increased use of these tools by competitors may also increase pressure to impose legal or regulatory frameworks regarding these tools, which could impact the financial services industry as a whole and cause us to incur increased costs to comply with such legal or regulatory frameworks, which may result in a negative impact on our financial condition, results of operations and business.

<u>Our liquidity is dependent upon our ability to receive dividends from our subsidiaries, which accounts for most of our revenue and could affect our ability to pay dividends, and we may be unable to provide liquidity from other sources.</u> We are a separate and distinct legal entity from our subsidiaries, notably the Bank. We receive substantially all of our revenue from dividends from our subsidiaries. These dividends are the principal source of funds to pay dividends on our common shares and interest and principal on outstanding debt. Various federal and/or state laws and regulations limit or restrict the amount of dividends that the Bank and certain of our non-bank subsidiaries may pay us. Additionally, if our subsidiaries' earnings are not sufficient to make dividend payments to us while maintaining adequate capital levels, we may not be able to make dividend payments to our common shareholders. As of December 31, 2025, the Bank had $193.6 million available to pay dividends to First Financial without prior regulatory approval.

To enhance liquidity, we may borrow under credit facilities or from other sources. Turbulence in the capital and credit markets may cause many lenders and institutional investors to reduce or cease to provide funding to borrowers and, as a result, we may not be able to further increase liquidity through additional borrowings under these market conditions.

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Limitations on our ability to receive dividends from our subsidiaries or an inability to increase liquidity through additional borrowings, or inability to maintain, renew or replace existing credit facilities, could have a material effect on our liquidity and on our ability to pay dividends on our common shares and interest and principal on our debt.

As of December 31, 2025, we had indebtedness of $1.2 billion which was an increase from $1.1 billion in 2024. This increase was primarily a result of the Company's overall balance sheet management strategies subsequent to the Westfield acquisition. If deposits were to decrease, we may need to incur additional indebtedness to ensure that we have adequate levels of liquidity.

<u>Clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding.</u> Checking and savings account balances and other forms of client deposits, including uninsured deposits, could decrease if clients perceive alternative investments as providing superior expected returns. Increased competition from money market funds and alternative investment vehicles may decrease our deposit balances and increase our funding costs. We regularly perform liquidity stress testing and sensitivity analyses of deposit assumptions. Both remain critical given recent trends in deposit balance and interest rate movements, as well as uncertainty regarding depositor behavior moving forward.

Digital banking has accelerated deposit mobility and increased liquidity risk. Consumers may move money out of bank deposits in favor of other investments, including digital assets or cryptocurrency or money market funds, or into alternative financial services providers with limited friction in moving assets. When clients move money out of bank deposits in favor of alternative investments or to alternative financial services providers, we can lose a relatively inexpensive source of funds, increasing our funding costs, and impacting the results of our operations. Recent industry events have demonstrated that deposit balances, particularly uninsured and digitally accessible deposits, can move rapidly during periods of market stress, requiring banks employ risk mitigation strategies to handle any increased liquidity pressures. Sound liquidity risk management, including processes that ensure sufficient committed capacity to meet contingent liquidity needs, remains critical.

<u>Our financial condition, results of operations, and stock price may be negatively impacted by unrelated bank failures and negative depositor and/or investor confidence in depository institutions.</u> The 2023 bank failures of Silicon Valley Bank in California, Signature Bank in New York, and First Republic Bank in California, and the decision of Silvergate Bank in California to voluntarily liquidate its assets and wind down operations have caused uncertainty in the investor community and negative confidence among bank customers generally. While we do not believe that the circumstances of these banks' failures and liquidations are indicators of broader issues with the banking system, the failures may reduce customer confidence, affect sources of funding and liquidity, increase regulatory requirements and costs, adversely affect financial markets and/or have a lasting negative reputational ramification for the financial services industry, including us. These bank failures led to volatility and declines in the market for bank stocks and questions about depositor confidence in depository institutions, which in turn led to a greater focus by institutions, investors, and regulators on the on-balance sheet liquidity of and funding sources for financial institutions and the composition of its deposits. Notwithstanding, our efforts to promote deposit insurance coverage with our customers and otherwise effectively manage our liquidity, deposit portfolio retention, and other related matters, our financial condition, results of operation, and stock price may be adversely affected by future negative events within the banking sector and adverse customer or investor responses to such events.

<u>Disruptions in our ability to access capital markets on desirable terms may affect our capital resources, liquidity and business.</u> We depend on wholesale capital markets to provide us with sufficient capital resources and liquidity to meet our commitments and business needs, and to accommodate the transaction and cash management needs of our clients. Other sources of funding available to us, and upon which we rely as regular components of our liquidity risk management strategy, include inter-bank borrowings, repurchase agreements, and borrowings from the Federal Home Loan Bank system. Any occurrence that may limit our access to these sources on acceptable or desirable terms, such as a decline in the confidence of debt purchasers, a downgrade in our credit rating or a downgrade in the credit rating of our depositors or counterparties participating in the capital markets, may affect our capital costs and our ability to raise capital and, in turn, our liquidity.

In addition, prior debt offerings could potentially have important consequences to us and our debt and equity investors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requiring a substantial portion of our cash flow from operations to make interest payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making it more difficult to satisfy debt service and other obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing the risk of a future credit ratings downgrade of our debt, which could increase future debt costs and limit the future availability of debt financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing our vulnerability to general adverse economic and industry conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reducing the cash flow available to fund capital expenditures and other corporate purposes and to grow our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting our flexibility in planning for, or reacting to, changes in our business and the industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• placing us at a competitive disadvantage relative to our competitors that may not be as highly leveraged with debt; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting our ability to borrow additional funds as needed or take advantage of business opportunities as they arise, pay cash dividends or repurchase securities.

<u>Projections for new business initiatives and strategies may prove inaccurate.</u> The introduction, implementation, withdrawal, success and timing of business initiatives and strategies, including, but not limited to, the opening of new banking centers or entering into new product lines, may be less successful or may be different than anticipated, which could affect our business, financial condition and the results of our operations. The Bank makes certain projections and develops plans and strategies for its banking and financial products. If we do not accurately forecast demand for our banking and financial products or if technology conversion challenges and/or customer attrition risks delay realization of expected benefits from acquisitions or branch purchases, it could result in us incurring significant expenses without the anticipated increases in revenue, which could result in a material effect on the Bank's business, capital, and/or results of our operations.

<u>We may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain borrower defaults, which could harm our liquidity, results of operations and financial condition.</u> When we sell mortgage loans, whether as whole loans or pursuant to a securitization, we are required to make customary representations and warranties to the purchaser about the mortgage loans and the manner in which they were originated. Our whole loan sale agreements require us to repurchase or substitute mortgage loans in the event we breach any of these representations or warranties including those that are breached as a result of misrepresentations or fraud by the borrowers. While we have taken steps to enhance our underwriting policies and procedures to protect against breaches of these representations and warranties in subsequent sales of mortgage loans, there can be no assurance that these steps will be effective or reduce risk associated with loans sold in the past. If the level of repurchase and indemnity activity becomes material, our liquidity, results of operations and financial condition may be affected.

<u>Competition in the financial services industry is intense and could result in our losing business and/or experiencing reduced margins.</u> We operate in a highly competitive industry that could become even more competitive as a result of legislative, regulatory and technological changes, including AI, Generative AI, LLMs and AI agents, and continued consolidation. We face aggressive competition from other domestic and foreign lending institutions as well as from numerous other providers of financial services. The ability of non-banking financial institutions to provide services previously limited to commercial banks has intensified competition. Because non-banking financial institutions are not subject to the same regulatory restrictions as banks and bank holding companies, they can often operate with greater flexibility and lower cost structures. Securities firms and insurance companies that elect to become financial holding companies may acquire banks and other financial institutions. These developments may significantly change the competitive environment in which we conduct business.

Some of our competitors have greater financial resources and/or face fewer regulatory constraints, such as FinTechs, digital assets or cryptocurrencies. FinTechs and other new technologies seek to complete financial transactions without banks or by utilizing banks that are not dependent on having physical branches in a customer's market area, or embed financial services into non-bank platforms which could reduce customer reliance on traditional banking services. FinTechs have also begun seeking commercial bank or industrial loan company charters, or are actively seeking to acquire commercial banks or industrial loan companies to further compete with traditional banking services. The rise in technological advances in the financial services industry has led to simpler opportunities for consumers to shop for higher deposit interest rates at banks across the country, which may offer higher rates because they have few or no physical branches and open deposit accounts electronically.

Further, in 2025, the United States passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (the "GENIUS Act"), which provides a regulatory framework for the issuance and adoption of stablecoins in the United States. The passage of the GENIUS Act may result in increased competition from issuers of stablecoins and providers of related technology, as well as non-bank competitors and financial institutions that offer to hold stablecoin reserve assets or custody stablecoins.

In addition to non-bank competitors, we face competition from within the traditional financial services industry. Credit unions that compete with us have tax, regulatory and other advantages that allow them to price products and services more competitively. Competing banks may have greater financial resources and/or face fewer regulatory constraints. Competing banks may also be more successful in implementing new technologies or developing or launching new products or services. As a result of these various sources of competition, we could lose loan, deposit, or other types of business to competitors or be forced to price products and services on less advantageous terms to retain or attract clients, either of which could affect our profitability.

Failure to adequately address the competitive pressures we face could make it harder for us to attract and retain customers across our businesses. Similarly, meeting these competitive pressures could require us to incur significant additional expense, to reevaluate the number of branches through which we serve our customers, or to accept risk beyond what we would otherwise

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view as desirable under the circumstances. In addition, in our interest rate sensitive business, pressure to increase rates on deposits or decrease rates on loans could reduce our net interest margin with a resulting negative impact on our net interest income. These competitive pressures could result in the loss of fee income and client deposits, increase our funding costs and impact our financial condition and results of our operations.

<u>Failure to keep pace or successfully adopt new technologies could adversely affect the results of our operations.</u> In addition to the new products and services that new technologies, including digital or cryptocurrencies, blockchain and other "fintech" technologies, bring to customers, successful adoption and implementation of new technologies can allow us to increase efficiencies and enable us to better serve customers in a more efficient manner at reduced costs.

We may undertake additional costs to implement new technologies. Our success depends in part on recognizing the potential of new technology that can be implemented to achieve these benefits. If we are not successful in implementing the new technologies, or otherwise do not realize the intended efficiency and cost benefits of the implementation of new technologies, we may be unable to recover the costs incurred during the implementation.

Additionally, implementation of certain new technologies, such as AI, Generative AI, LLMs, AI agents and similar technologies, can expose us to new or increased operational risks, including risks related to data leakage, model bias, decision errors, regulatory non-compliance, or ineffective governance or internal controls. The implementation of these new technologies may have unintended consequences due to their limitations or failure to use and implement them effectively. Further, many of our competitors have greater resources to develop these and other new technologies without reliance on third party vendors or developers, which can reduce their costs and exposure to third party risks, which could put us at a competitive disadvantage. For more information on the risks associated with these new technologies, see the Risk Factor titled "*The increased use and capacity of AI, Generative AI, large language models (LLMs), and AI agents by customers, vendors and competitors increases risks to our business.*"

<u>Failure to attract and/or retain key employees could impact our business operations.</u> Another increasingly competitive factor in the financial services industry is the competition to attract and retain talented employees across many of our business and support areas, many of whom are key to executing our strategic plan and to maintaining relationships with the customers and communities they serve. We face competition for talented employees not only by others in the financial services industry, but across sectors and geographic locations, as technological advancements have made it easier for employees to pursue opportunities that previously were inaccessible because of geographical restrictions. Failure to attract and/or retain key employees, or otherwise experiencing persistent or extreme levels of employee turnover, could lead to adverse effects on our business, financial condition or operating results and could also cause us to not pursue certain business opportunities.

<u>Our wealth management business subjects us to a variety of investment and market risks.</u> At December 31, 2025, we had $3.9 billion in assets under management. A sharp decline or heightened volatility in the stock market could negatively impact the value of investments held by the bank's wealth management clients, which in turn impacts the amount of assets under management and subjects our earnings to additional risks and uncertainties. As our wealth management business grows, we may also face operational risk resulting from inadequate or failed internal processes, systems or errors, and regulatory risk, which could result in penalties or restrictions due to non-compliance with laws and regulations.

Additionally, many of the same technological advances that compete with our banking services may compete with our wealth management business. Some of our competitors have greater financial resources and/or face fewer regulatory constraints, such as FinTechs, that allow customers trade investments without the use of wealth management services. Further, customers are seeking to invest in the cryptocurrency markets which may also reduce our assets under management. These competitive factors could further impact the amount of assets under management, decrease our earnings, increase costs to address competitive pressures and impact our financial condition and the results of our operations.

<u>Negative public opinion could damage our reputation and impact business operations and revenues.</u> As a financial institution, our earnings and capital are subject to risks associated with negative public opinion. Negative public opinion could result from our actual or alleged conduct in any number of activities, including lending practices, the failure of any of our products or services to meet our clients' expectations or applicable regulatory requirements, corporate governance and acquisitions, social media and other marketing activities, the acts, comments, or statements made by employees or third parties we have engaged, whether individually or on behalf of us, and the implementation of environmental, social and governance practices or actions taken by government regulators and community organizations in response to any of the foregoing. Negative public opinion could affect our ability to attract and/or retain clients, attract and/or retain employees, could expose us to litigation and/or regulatory action, and could have a material adverse effect on the results of our operations, our stock price or result in heightened volatility. Negative public opinion could also affect our ability to borrow funds in the unsecured wholesale debt markets.

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<u>We may not pay dividends on our common shares.</u> Holders of our common shares are only entitled to receive such dividends as our Board of Directors may declare out of funds legally available for such payments. Although we have historically declared cash dividends on our common shares, we are not required to do so and may reduce or eliminate our common share dividend in the future. Additionally, our funds to pay dividends on common shares are dependent upon the results of operations and dividends paid to us by the Bank, which are subject to regulatory restrictions. A reduction in our dividend rate could affect the market price of our common shares.

<u>Significant or sustained declines in our current market capitalization could impact the carrying value of our goodwill.</u> Numerous facts and circumstances are considered when evaluating the carrying value of our goodwill. One of those considerations is our market capitalization, which is evaluated over a reasonable period of time and compared to the aggregate estimated fair value of the reporting unit. While this comparison provides some relative market information regarding the estimated fair value of our reporting unit, it is not determinative and needs to be evaluated in the context of the current economic and political environment. However, significant and/or sustained declines in First Financial's market capitalization, especially in relation to First Financial's book value, could be an indication of potential impairment of goodwill.

Other considerations that factor into the aggregate estimated fair value of the reporting unit include forecasts of revenues and expenses derived from internal management projections for a period of five years, changes in working capital estimates, company specific discount rate derived from a rate build up approach, externally sourced bank peer group market multiples and externally sourced bank peer group change in control premium, all of which are highly subjective and require significant management judgment. Changes in these key assumptions could materially affect our estimate of the reporting unit fair value and could affect our conclusion regarding the existence of potential impairment of goodwill.

<u>A reduction in our credit rating could affect us or the holders of our securities.</u> The credit rating agencies assessing our creditworthiness regularly evaluate us, and provide a credit rating. Credit ratings are based on a number of factors, including our financial strength and ability to generate earnings, as well as factors not entirely within our control, including changes in rating methodologies and conditions affecting the financial services industry and the economy as a whole. There can be no assurance that we will maintain our current credit rating. A downgrade of the credit rating of the Company could affect our access to liquidity and capital, and could significantly increase our cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to us or purchase our securities. This could affect our growth, profitability, financial condition, including liquidity, and the results of our operations.

<u>Potential acquisitions may disrupt our business and dilute shareholder value, we may not be able to successfully consummate or integrate such acquisitions, and we may not realize the anticipated benefits contemplated when pursuing a potential acquisition.</u> We may acquire other financial institutions, or branches or assets of other financial institutions, in the future. We may also open new branches and enter into new lines of business or offer new products or services either through organic expansion, mergers, acquisitions or similar corporate transactions. These risks and uncertainties are present in the acquisitions and subsequent integration into First Financial of Westfield Bancorp and Westfield Bank; and BankFinancial Corporation and BankFinancial, National Association. Any such expansion of our business will involve a number of expenses and risks, which may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the time and expense associated with identifying and evaluating potential expansions, including the ability to conduct due diligence and the access to information discovered during the due diligence process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential inaccuracy of estimates, judgments, and assumptions used to evaluate credit, operations, management and market risk with respect to the target company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential exposure to unknown or contingent liabilities of the target company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to potential asset quality issues of the target company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty and expense of integrating the operations and personnel of the target company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty or added costs in the wind-down of non-strategic operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a target specific risk that the acquisition target faces that is specific to its business, industry, or market area and its impact to the success of the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential disruption to our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential diversion of our management's time and attention;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possible loss of key employees and customers of the target company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in estimating the value (including goodwill) of the target company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in receiving appropriate regulatory approval for any proposed transaction or the denial of such approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential increased costs or time required to complete an acquisition may be substantially greater or longer than anticipated;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential risks related to any transactions involving intellectual property, and the extent to which such intellectual property is utilized or protected in the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges faced when integrating a target into First Financial related to differences in policies and procedures, utilization of systems, details and comprehensiveness of data integration, and the integration of new employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential changes in banking, tax or other laws or regulations or accounting rules that may affect the target company or our realization of any anticipated benefits or accretive shareholder value from undertaking such expansion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation risk.

We regularly evaluate merger and acquisition opportunities and conduct due diligence activities related to possible transactions with other financial institutions and financial services companies. Acquisitions could involve the payment of a premium over book and market values, and, therefore, dilution of our tangible book value and net income per common share may occur in connection with any such transaction. Furthermore, any difficulty integrating businesses acquired as a result of a merger or acquisition and the failure to realize the expected revenue increases, cost savings, increases in geographic or product presence and/or other projected benefits from an acquisition could have an impact on our liquidity, results of operations and financial condition and any such integration could divert management's time and attention from managing our company in an effective manner.

Any merger or acquisition opportunity that we decide to pursue will ultimately be subject to regulatory approval or other closing conditions. We may expend substantial time and resources pursuing potential acquisitions which may not be consummated because regulatory approval or other closing requirements are not satisfied. Additionally, the banking regulators and applicable laws and regulations may restrict our ability to engage in acquisitions under certain circumstances.

<u>Our accounting policies and processes are critical to how we report our financial condition and results of operations. They require management to make estimates about matters that are uncertain.</u> Accounting policies and processes are fundamental to how we record and report our financial condition and results of operations. Management must exercise judgment in selecting and applying many of these accounting policies and processes so they comply with U.S. GAAP.

Management has identified certain accounting policies as being critical because they require management's judgment to ascertain the valuations of assets, liabilities, commitments and contingencies. A variety of factors could affect the ultimate valuation that is made when recording income, recognizing an expense, recovering an asset, valuing an asset or liability or reducing a liability. We have established detailed policies and control procedures that are intended to ensure these critical accounting estimates and judgments are well controlled and applied consistently. In addition, our policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. Because of the uncertainty surrounding our judgments and the estimates pertaining to these matters, we cannot guarantee that we will not be required to adjust accounting policies or re-state prior period financial statements.

See the "Critical Accounting Estimates" in the Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 1- Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements, in our 2025 Annual Report to Shareholders (included within Exhibit 13 to this Form 10-K) for more information.

<u>Changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition.</u> From time to time, the FASB, SEC and other regulatory agencies may change the financial accounting and reporting guidance that governs the preparation of our financial statements. These changes can be hard to predict and can materially impact how we manage, record and report our financial condition and results of operations. In some cases, we could be required to apply a new or revised standard retroactively, resulting in a requirement to restate prior period financial statements.

<u>Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.</u> Our disclosure controls and procedures are designed to reasonably assure that information required to be disclosed by us in reports we file or submit under the Securities Exchange Act of 1934 ("Exchange Act") is accurately accumulated and communicated to management, and recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. We believe that any disclosure controls and procedures or internal controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of management's system of controls are met.

These inherent limitations include the realities that judgments in decision making can be faulty, that alternative reasoned judgments can be drawn, that some information may be reported inaccurately because we must specifically rely upon the person providing such information or that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in management's system of controls, misstatements due to error or fraud may occur and not be detected.

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<u>Our revenues derived from investment securities may be volatile and subject to a variety of risks.</u> We generally maintain investment securities and trading positions in the fixed income markets. Unrealized gains and losses associated with our investment portfolio and mark-to-market risks associated with our investment portfolio are affected by many factors, including our credit position, interest rate volatility and volatility in capital markets, among other economic factors. Our return on such investments could experience volatility, and such volatility may affect our financial condition and results of operations. If we were required to liquidate our holdings in these investment securities and/or exit positions prior to maturity or prior than we had anticipated, it could result in losses and may affect our financial condition and results of operations. Additionally, accounting regulations may require us to record a charge prior to the actual realization of a loss when market valuations of such securities are impaired and such impairment is considered to be other than temporary.

We also have investments in mortgage backed securities, including collateralized mortgage obligations. These securities are participations in pools of loans secured by mortgages under which payments of principal and interest are passed through to security holders. These securities are subject to prepayment risk, particularly during periods of declining interest rates, and extension risk during periods of rising interest rates. Prepayments of the underlying real estate loans may shorten the lives of the securities, thereby affecting yields to maturity and market values.

During 2025, the Company realized $22.3 million of losses on investment securities, compared to $22.6 million in 2024. The repositioning of a portion of the investment portfolio accounted for losses of $6.5 million and $13.2 million in 2025 and 2024, respectively, while impairment write-downs on securities with credit deterioration accounted for $8.1 million of losses in 2025 and $9.7 million in 2024. While we do not expect these losses to continue in 2026, these losses are an example of losses experienced as a result of volatility in revenues derived from investment securities.

<u>Sales of our securities, or the perception of such sales, by us or holders of our securities in the public market or otherwise could cause the market price of our securities to decline and issuances under additional registration statements would dilute the interest of our shareholders and likely present other risks.</u> The issuance or sale of our securities in public markets or otherwise, or the perception that such sales may occur, could impact the prevailing market price or demand of our securities. These sales, or the possibility that these sales may occur, also might make it more difficult to issue securities in the future at a time and at a price that we deem appropriate. Further resales of our securities may cause the market price of our securities to drop, even if our business is doing well.

The market price of our common stock could decline if holders of our shares sell those shares, including pursuant to a resale registration statement, or the market anticipates such sale by holders. As such, substantial sales of our common stock could occur at any time. Such sales, or the perception or anticipation of such sales, could reduce the demand and market price of our common stock.

On November 5, 2025, we filed an automatic shelf registration statement on Form S-3ASR for the issuance of an indeterminate amount of debt securities, capital stock, depositary shares, warrants, rights, stock purchase contracts, and units or a combination thereof. On November 10, 2025, we issued and sold $300.0 million aggregate principal amount of 6.375% Fixed-to-Floating Rate Subordinated Notes due 2035 (the "*Subordinated Notes*") under the November 5, 2025 automatic shelf registration statement on Form S-3ASR. We have not issued any other securities under this automatic shelf registration statement.

The issuances and sales of our securities described herein may increase the volatility of the market price of our common stock. The sale by holders who were issued common stock, or the perception that these holders will sell the common stock, could result in a decline in the public trading price of our common stock. The issuance of our Subordinated Notes may decrease the demand for our common stock, as holders who purchased the Subordinated Notes may no longer be buyers of our common stock or may consider diversifying their holdings of us by selling shares of our common stock. Additionally, the issuances of these securities may make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise with effect to sales.

**Risks Related to the Legal and Regulatory Environment**

<u>We operate in a highly regulated industry and compliance with regulations and/or regulatory actions could impact the results of our operations.</u> We, as well as our subsidiaries, are subject to the supervision and regulation of various state and federal regulators, including the Federal Reserve Board, the FDIC, the SEC, the CFPB, the Financial Industry Regulatory Authority, and ODFI. As such, we are subject to a wide variety of state and federal laws and regulations that require compliance of a complex and evolving regulatory framework. This includes, among others, capital adequacy requirements, Anti-Money Laundering and Bank Secrecy Act compliance, consumer protection laws and data privacy laws. As part of their supervisory

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process, which includes periodic examinations and continuous monitoring, the regulators have the authority to impose restrictions or conditions on our activities and the manner in which we operate our business. These actions could impact the Company and the Bank in a variety of ways, including subjecting us to fines, restricting our ability to pay dividends, precluding mergers or acquisitions, limiting our ability to offer certain products or services, requiring us to undertake significant remedial measures, removing key employees from their positions, imposing additional capital, operating, or oversight requirements or ultimately, in the event that any regulatory violations or actions cannot be corrected and are substantial in nature to cause an imminent risk of loss to depositors, we could be placed into receivership or conservatorship. Additionally, investigations and/or actions by regulatory agencies against us could cause us to devote significant time and resources to defending our business and/or modifying our practices and operations and may lead to penalties or fines that materially affect us and our shareholders. These regulatory inquiries, investigations, examinations and actions ultimately could have an adverse effect on our reputation, lead to increased costs and impact our financial condition and the results of our operations.

<u>Regulations related to information security, data protection and data privacy could expose us to regulatory risks, civil liabilities and increase our costs.</u> We are subject to a variety of data protection, information security and data privacy laws, which includes the implementation of security procedures, processes and procedures to safeguard against the unauthorized use of consumer information and data breach notification obligations. Compliance with these laws has required us to undertake costs, devote personnel and implement processes and procedures to ensure compliance. While we have implemented processes and procedures designed to ensure compliance with these laws and regulations, there is still the possibility of non-compliance. Our failure to comply with data protection, information security and data privacy laws could result in potentially material regulatory and/or governmental investigations, actions, litigation, fines, sanctions and reputation harm, as well as costs incurred in responding to inquiries related to these laws, which could have an impact on our financial condition and results of operations.

State and federal regulators continue to revise and/or adopt legislation regarding information security, data protection and data privacy. Revised and/or new legislation related to information security, data protection and data privacy can result in increased costs of compliance for us and impact our financial condition and results of operations.

<u>The regulations under which we operate are subject to change, which could result in restrictions and requirements that could detrimentally impact the results of our operations.</u> Because we operate in a highly regulated industry, we may be required to adapt our processes and operations may be required and modify the way we conduct business to comply with regulatory requirements. Regulations and laws are subject to change, and changes may impact us in a variety of ways, including increasing costs to operate our business, limiting our ability to offer certain products or services, requiring us to undertake significant measures to comply with the changing regulations or otherwise impact the results of our operations.

Legislative and regulatory proposals continue to be introduced that could significantly affect consumer credit products and pricing, including proposals to impose caps on interest rates or fees, such as a proposed federal limit on credit card interest rates. If enacted, such measures could reduce interest income, alter product economics, limit the availability of certain credit products, or require material changes to underwriting, pricing, and risk management practices. The outcome, timing, and scope of these proposals remain uncertain, but their adoption could adversely affect our financial condition, results of operations, business and prospects.

In 2025, the United States Congress took action to reduce federal funding to the CFPB. The CFPB is currently undergoing changes as an agency in terms of leadership, direction, goals, and enforcement capabilities. The results of these changes are not yet known.

<u>Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.</u> Financial institutions continue to face evolving expectations from customers, regulators, investors, and other stakeholders regarding environmental, social, governance, and sustainability-related practices and disclosures. In addition, climate-related physical and transition risks may affect borrowers, collateral values, insurance availability, supply chains, and economic conditions in the markets we serve, while shifts in public policy, technology, and investor or customer preferences may affect certain industries and business activities differently. Adapting to changing regulatory requirements and stakeholder expectations, as well as managing risks associated with environmental and social developments, may increase operational and compliance costs, affect relationships with customers or business partners, and could adversely impact our reputation, access to capital, financial condition, and results of operations.

**General Risk Factors**

<u>Weaknesses of other financial institutions could affect us.</u> Our ability to engage in routine funding transactions could be affected by the actions and lack of commercial soundness of other financial institutions. Financial services institutions are

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interrelated as a result of trading, clearing, and counterparty relationships, among others. As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry in general, have led to market-wide liquidity problems and could lead to losses or defaults by us or by other institutions in the future. A default, or threatened default, of a large institution could negatively impact the entire financial system and could expose us to credit risk in the event of default of our counterparty or client. In addition, our credit risk may be exacerbated when the collateral held by us cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the financial instrument exposure due us. There is no assurance that any such losses would not affect our financial condition or results of operations.

Further, weaknesses of other financial institutions can affect the demand for securities in the financial institutions industry, which could have a detrimental effect on the price of our common shares. For more details regarding the potential impacts of weakness in other financial institutions, see the Risk Factor titled *"Our financial condition, results of operations, and stock price may be negatively impacted by unrelated bank failures and negative depositor confidence in depository institutions."*

<u>The fiscal and monetary policies of the United States government and its agencies could have an effect on our earnings.</u> The Federal Reserve Board regulates the supply of money and credit in the United States, and its policies significantly influence funding costs, loan and investment yields, and net interest margin, as well as the value of financial assets such as debt securities. During 2025, the Federal Reserve eased monetary policy through several rate reductions following the elevated rate environment of prior periods; however, the future path of interest rates remains uncertain and policy decisions continue to evolve in response to economic conditions. In addition, recent public debate and legal challenges concerning the independence of the Federal Reserve, along with the anticipated transition to new Federal Reserve leadership in 2026, have contributed to uncertainty regarding the direction and implementation of future monetary policy. Federal Reserve policy decisions and related market reactions may adversely affect borrowers' repayment capacity and asset valuations, and because such policies and leadership developments are beyond our control and difficult to predict, their impact on our financial condition and results of operations remains uncertain.

<u>Changes in tax laws could affect our performance.</u> We are subject to extensive federal, state and local taxes, including income, excise, sales/use, payroll, property, franchise, withholding and ad valorem taxes. Changes to these tax laws can impact our tax liability and the tax liabilities of our customers. Changes to our tax liability could have a material effect on our results of operations. In addition, our customers are subject to a wide variety of federal, state and local taxes. Changes in taxes paid by our customers may affect our deposit levels and composition and customers' demand for loans and other products and services. In addition, such negative effects on our customers could result in defaults on the loans we have made and decrease the value of mortgage-backed securities in which we have invested.

<u>Adverse external events outside of our control, such as natural disasters, acts of war or terrorism and new public health issues, could impact our business operations.</u> While we have implemented processes and procedures as part of our business continuity and disaster recovery plans, there is still the potential that adverse external events outside of our control, such as natural disasters, acts of war or terrorism, new public health issues, could impact our business operations. These events could impact our computer systems, communication systems, damage or destroy certain facilities or cause other impacts to our operations such as loss of power, as well as impact those systems, facilities and/or operations of our third party service providers. There is no assurance that our business continuity and disaster recovery plans can adequately account for all contingencies or adequately mitigate these risks, and the occurrence of these adverse external events could adversely impact our properties, operations, employees, customers, reputation, collateral securing loans and/or interfere with our borrowers' abilities to repay their loans.

**Item 1B. Unresolved Staff Comments.**

None.

**Item 1C. Cybersecurity.**

<u>Risk Management and Strategy</u>

Cybersecurity (cyber) risk is differentiated from information technology risk by threat interactions that yield high impact consequences and ever-increasing probability. While standard security operations address most day-to-day incidents, cyber risk includes motivated threat actors who often use advanced tools, techniques and processes to evade detection or inflict maximum damage to an organization's information assets. Cyber threats and attacks adapt and evolve rapidly, and the Company works to continuously enhance controls and processes to protect its networks, applications, and data from attack, damage, or unauthorized access. Critical components to the Company's cyber risk control structure include corporate governance, access management, threat intelligence, security operations, security awareness training, and vulnerability management programs. Cyber risk mitigation includes effectively identifying, protecting against, detecting, responding to, and recovering from cyber threats.

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The Company's cybersecurity program is overseen by its Chief Information Security and Privacy Officer (the "CISO"). The Company's CISO has over 25 years of experience in information security and technology governance, risk, and compliance, including a previous CISO position at a large regional bank. The Company's CISO has also held leadership roles in enterprise risk management and internal audit for large financial service organizations, as well as at a global audit, assurance, and advisory firm. The CISO meets quarterly with and chairs the Cyber ERM Committee, which consists of representatives from the officer of enterprise security, information technology, risk, compliance, and other internal stakeholders, and presents quarterly to the Enterprise Risk Management Committee ("ERMC"), which includes executive and senior leadership of the Company, and the Risk and Compliance Committee of the Board of Directors ("Board Risk Committee"). The management of risk from cybersecurity threats is one of the risks that is continuously assessed, monitored and managed by the Company under the Company's ERM framework which is described more fully in the Company's Annual Report to Shareholders. The CISO maintains a scorecard which monitors and measures various cyber risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Operational capability, including access management, cyber defense, vulnerability management, and third-party risk management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Risk assessments, including GLBA assessments, penetration assessments and attack simulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Program maturity, leveraging the NIST Cybersecurity Framework.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Internal and External Audit, including external assessments, internal audit results, and regulator exam results.

The Company uses a variety of tools to monitor and mitigate cybersecurity risks, including employee training, simulated phishing exercises, incident response tabletops, cybersecurity insurance, and business continuity planning for the protection of the Company's assets. Additionally, the Company's cybersecurity function is audited on an annual basis by internal audit and external regulatory examiners.

The Company maintains an ad hoc committee comprised of senior management with responsibility for third party (vendor) risk management, including the CISO, the Chief Risk Officer, the Chief Compliance Officer, representatives from vendor management, and enterprise risk management associates. The ad hoc committee reviews diligence regarding vendors, including cyber diligence, and monitors any incidents or cybersecurity threats involving those third parties. Cyber diligence of critical vendors (vendors which store or interact with customers' personally identifiable information) includes an annual review of the technology and data interfaces with the vendor, an annual review of the vendor's cyber security controls, and monthly monitoring of the vendor's outward-facing security posture.

The Company is not aware of risks from cybersecurity threats, including those resulting from any previous cybersecurity incidents, which have materially affected the Company, including its business strategy, results of operations, or financial condition.

<u>Governance</u>

First Financial's Board of Directors is responsible for overseeing the Company's cybersecurity risk management objectives and risk tolerance as part of its oversight of the Company's compliance and risk management activities. Specific oversight of the cybersecurity function is delegated to the Board Risk Committee. The Chair of the Board Risk Committee has extensive cybersecurity experience, including both experience as a chief information security officer of a publicly traded financial institution and as an outside cybersecurity consultant. The committee chairperson maintains CISSP and CRISC certifications. Through the Board Risk Committee, the Board's oversight responsibilities include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.establishing and guiding the Company's cybersecurity risk tolerance, including the determination of the aggregate risk appetite and identifying the senior managers who have the responsibility for managing risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.ensuring that the Company implements sound fundamental principles that facilitate the identification, measurement, monitoring and control of risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.ensuring that adequate resources are dedicated to cybersecurity risk management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.confirming that awareness of cybersecurity risk management activities is evident throughout the organization.

The Company has developed and documented an incident response plan that includes various levels of escalation in the event of a cyber incident. All incidents begin with information security and information technology associates, with escalation to a crisis management team comprised of the CISO, the Chief Risk Officer and certain designated members of executive management in the event the situation is severe. The crisis management team communicates with the full executive team and the Board of Directors in case of more severe incidents. More complete reporting is then provided to the ERMC and the Board Risk Committee during regularly scheduled quarterly meetings.

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**Item 2. Properties.**

At December 31, 2025, the Company operated 134 full service banking centers, 28 of which are leased facilities. Our core banking operating markets are located within the four state region of Ohio, Indiana, Kentucky and Illinois. First Financial's executive office is a leased facility located in Cincinnati, Ohio and we operate 62 banking centers in Ohio, three banking centers in Illinois, 58 banking centers in Indiana and 11 banking centers in Kentucky. In addition, we operate our Commercial Finance division, responsible for our insurance lending business and franchise lending business, from a non-banking center location in Indianapolis, Indiana, our leasing business from a non-banking center location in Mason, Ohio, and our insurance premium finance division from a non-banking center in Lincolnshire, Illinois.

**Item 3. Legal Proceedings.**

We are from time to time engaged in various litigation matters including the defense of claims of improper or fraudulent loan practices or lending violations, and other matters, and we have a number of unresolved claims pending. In addition, as part of the ordinary course of business, we are parties to litigation involving claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, and foreclosure interests, that are incidental to our regular business activities. While the ultimate liability with respect to these other litigation matters and claims cannot be determined at this time, we believe that damages, if any, and other amounts relating to pending matters, such as costs, are not likely to be material to our consolidated financial position or results of operations. Reserves are established for these various matters of litigation, when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel.

**Item 4. Mine Safety Disclosures.**

Not applicable.

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**Supplemental Item. Information About Our Executive Officers.**

The following table sets forth information concerning the executive officers of First Financial as of February 18, 2026. The executive officers perform policy-making functions for First Financial. The officers are elected annually at the organizational meeting of the board of directors and serve until the next organizational meeting, or until their successors are elected and duly qualified.

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| | | |
|:---|:---|:---|
| | **Position with<br>First Financial Bancorp** | Age |
| Archie M. Brown | President and Chief Executive Officer | 65 |
| James M. Anderson | EVP, Chief Financial Officer and Chief Operating Officer | 54 |
| Richard S. Dennen | EVP, Chief Corporate Banking Officer | 59 |
| Karen B. Woods | EVP, General Counsel and Chief Administrative Officer | 57 |
| William R. Harrod | EVP, Chief Credit Officer | 58 |
| Amanda N. Neeley | EVP, Chief Consumer Banking and Strategy Officer | 45 |
| Gregory A. Harris | President, Yellow Cardinal Advisory Group | 57 |
| Matthew D. Reckman | Chief Commercial Banking Officer | 47 |

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The following is a brief description of the business experience over the past five years of the individuals named above.

**Archie M. Brown** - Archie Brown is the President, Chief Executive Officer and a director of First Financial and the Bank, having been appointed to these positions on April 1, 2018 following First Financial's acquisition of MainSource Financial Group, Inc. Previously, he served as the President and Chief Executive Officer of MainSource from August 2008 until April 2018 and chairman of the board of MainSource from April 2011 until April 2018.

**James M. Anderson** - Jamie Anderson became the Chief Financial Officer of First Financial and the Bank on April 1, 2018 following the merger of First Financial and MainSource and the Chief Operating Officer in April 2023. Previously Mr. Anderson served as the Chief Financial Officer of MainSource from January 2006 to April 2018. Prior to that role, he served in the following roles at MainSource: Administrative Vice President and Principal Accounting Officer from March 2005 to January 2006, Controller and Principal Accounting Officer from March 2002 to March 2005, and Controller from September 2000 to March 2002. Mr. Anderson is a certified public accountant (inactive).

**Richard S. Dennen** - Rick Dennen became the Chief Corporate Banking Officer of First Financial in 2021, and is currently responsible for the Bank's Specialty Banking lines of business, which include Corporate Banking, ESOP, Structured Capital, Food and Agribusiness, Investment Commercial Real Estate, Bannockburn Global Forex, Oak Street Funding, and First Franchise Capital. Oak Street Funding is a specialty finance company engaged in lending to insurance agencies, registered investment advisors, certified public accountants, energy and indirect auto financing companies. First Franchise Capital Corporation lends to restaurant franchises. Mr. Dennen is a certified public accountant (inactive).

**Karen B. Woods** - Karen Woods serves as General Counsel and Chief Administrative Officer of First Financial. She joined First Financial in April 2018 following the merger of First Financial and MainSource and served as General Counsel and Chief Risk Officer from 2018-2022. She previously served as Corporate Counsel and Chief Risk Officer of MainSource from January 2016 to April 2018. Prior to joining MainSource, Ms. Woods was a partner at Krieg DeVault LLP in Indianapolis, Indiana where her practice focused on representing financial institutions and corporate clients. Ms. Woods previously served as a judicial law clerk to the Honorable John G. Baker, Indiana Court of Appeals.

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**William R. Harrod** - Bill Harrod is the Chief Credit Officer of First Financial, a role he has held since October 2017. He is responsible for managing and monitoring the loan portfolio and other related credit functions in a risk appropriate manner including underwriting, approval, and collections. Mr. Harrod first joined First Financial in 2015 and has held various credit and management positions since then in specialty banking, corporate banking, commercial and industrial lending and commercial finance.

**Amanda N. Neeley** - Mandy Neeley is the Chief Consumer Banking and Strategy Officer of First Financial. Ms. Neeley is responsible for the launch and evolution of the First Financial brand, the introduction of the Premier Business Bank strategy, the advancement of sales and enterprise customer relationship management processes, and development of a formalized strategic planning program. Ms. Neeley has spent her entire career in banking with First Financial, beginning as a part-time teller during college and, after graduating in 2003, Marketing Coordinator. She has held the role of Chief Strategy Officer since 2016 and added the role of Chief Consumer Banking Officer in 2021.

**Gregory A. Harris** - Greg Harris serves as the president of Affluent Banking and Yellow Cardinal Advisory Group, a division of First Financial Bank. He is responsible for all aspects of the business line including sales, client experience, investment management, administration, compliance, and operations. Greg joined First Financial in 2009 and has over 32 years of experience in the financial services industry. Prior to joining First Financial, Greg served in various leadership capacities at Touchstone Investments, an institutional mutual fund management company and Fund Project Services, Inc., a financial services M&A integration firm he co-founded in 1998. He began his career at Fifth Third Bank as a product manager within the bank's Trust and Investment business.

**Matthew D. Reckman** - Matt Reckman serves as the Chief Commercial Banking Officer of First Financial, where he oversees and drives the execution of the Bank's commercial banking strategy across its entire footprint. Since joining First Financial in 2015 as a business development officer, Matt has held pivotal roles, including serving as a market president. Matt has more than 25 years of commercial banking experience. Prior to joining First Financial, he was a commercial relationship manager at both Huntington Bank and US Bank.

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**PART II**

**Item 5**. **Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Market information, holders, dividends**

First Financial's common shares are listed on The NASDAQ Global Select Stock Market® under the symbol "FFBC." As of February 18, 2026, our common shares were held by approximately 3,767 shareholders of record, a number that does not include beneficial owners who hold shares in "street name," or shareholders from previously acquired companies that have not exchanged their stock. At December 31, 2025, there were no stock options outstanding and there were 858,295 shares of restricted stock outstanding. Additional information about stock options, restricted stock and restricted stock units is included in Note 21 - Stock Options and Awards in the Notes to Consolidated Financial Statements in First Financial's 2025 Annual Report to Shareholders and in Item 12 below.

The payment of future cash dividends is at the discretion of our Board of Directors and subject to a number of factors, including results of operations, general business conditions, growth, financial condition, regulatory limitation and other factors deemed relevant by the Board. Further, our ability to pay future cash dividends is subject to certain regulatory requirements and restrictions discussed in the Supervision and Regulation section in Item 1 above. For further information see Note 3 - Restrictions on Cash and Dividends in the Notes to Consolidated Financial Statements of First Financial's 2025 Annual Report to Shareholders (included as Exhibit 13 of this report), which is incorporated by reference in response to this item.

**Stock Performance Graph**

The stock performance graph contained in "Total Return to Shareholders" of First Financial's 2025 Annual Report to Shareholders (included as Exhibit 13 of this report), is incorporated herein by reference in response to this item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Unregistered Sales of Equity Securities and Use of Proceeds

On November 1, First Financial issued 2,753,094 shares of our common stock (the "Stock Consideration") in accordance with the terms and subject to the conditions set forth in the Stock Purchase Agreement (the "Purchase Agreement"), by and between First Financial and OFIC, dated as of June 23, 2025. The Closing, as defined in the Purchase Agreement, occurred on November 1, 2025, and delivery of the Stock Consideration to OFIC was effected on November 3, 2025, which was the first business day following the Closing.

The offer and sale of the Stock Consideration was made to persons who are "accredited investors" as defined in Rule 501 of Regulation D promulgated under the Securities Act. The offer and sale of the Company Stock is being made in reliance on the exemption from registration afforded under Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Issuer Purchases of Equity Securities

In December 2023, the Board authorized a two-year stock repurchase plan effective January 1, 2024, that provides for the purchase of up to 5,000,000 shares of the common stock of the Company (the "2024 Stock Repurchase Plan"). The Company did not purchase any shares under the 2024 Stock Repurchase Plan in the fourth quarter of 2025.

**Item 6. [Reserved]**

**Item 7. Management's Discussion and Analysis of Financial Condition and Results Of Operations.**

The information contained in the Management's Discussion and Analysis section (including certain forward looking statements) of First Financial's 2025 Annual Report to Shareholders (included as Exhibit 13 of this report) is incorporated herein by reference in response to this item.

**Item 7A. Quantitative and Qualitative Disclosure About Market Risk.**

The information contained in the Market Risk section and in Table 20 - Market Risk Disclosure of the Management's Discussion and Analysis section, both of which are in First Financial's 2025 Annual Report to Shareholders (included as Exhibit 13 of this report), is incorporated herein by reference in response to this item.

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**Item 8. Financial Statements and Supplementary Data.**

The consolidated financial statements and the reports of our independent registered public accounting firm included in the Consolidated Financial Statements and the Notes to Consolidated Financial Statements in First Financial's 2025 Annual Report to Shareholders (included as Exhibit 13 of this report), are incorporated herein by reference.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.**

None.

**Item 9A. Controls and Procedures.**

**Disclosure Controls and Procedures**

Management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under

Rule 13a-15 of the Exchange Act, that are designed to cause the material information required to be disclosed by First Financial in the reports it files or submits under the Exchange Act to be recorded, processed, summarized, and reported to the extent applicable within the time periods required by the SEC's rules and forms. In designing and evaluating the disclosure controls and procedures, management recognized that a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

As of the end of the period covered by this report, First Financial performed an evaluation under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rule 13a-15 of the Exchange Act. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective at the reasonable assurance level.

**Changes in Internal Control over Financial Reporting**

There were no changes in First Financial's internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, First Financial's internal control over financial reporting.

**Item 9B. Other Information.**

During the three months ended December 31, 2025, none of the Company's officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.** 

Not applicable.

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**PART III**

**Item 10. Directors, Executive Officers and Corporate Governance.**

Certain information concerning executive officers of First Financial has been supplied in the "Supplemental Item. Executive Officers of the Registrant" of this Form 10-K. The information appearing under the headings "Election of Directors," "Corporate Governance - Board Committees," "Shareholder Nominations for Election to the Board" and "Delinquent Section 16(a) Reports" in First Financial's Definitive Proxy Statement with respect to the Annual Meeting of Shareholders to be held on May 26, 2026, and which is expected to be filed with the SEC, pursuant to Regulation 14A of the Exchange Act ("First Financial's Proxy Statement") within 120 days of the close of our fiscal year, is incorporated herein by reference in response to this item.

The Company has adopted an insider trading policy (included as Exhibit 19 of this report) that governs the purchase, sale, and/or other dispositions of the Company's securities by our officers, directors, and employees that is designed to comply with insider trading laws, rules, and regulations, as well as any applicable listing standards.

**Item 11. Executive Compensation.**

The information appearing under the headings "Meetings of the Board of Directors and Committees of the Board," "Compensation Discussion and Analysis," "Executive Compensation," "Compensation Tables," "Compensation Committee Interlocks and Insider Participation," "Compensation Committee Report" and "2025 Board Compensation" in First Financial's Proxy Statement is incorporated herein by reference in response to this item.

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.**

The information appearing under the headings "Shareholdings of Directors, Executive Officers, and Nominees for Director" and "Principal Shareholders" of First Financial's Proxy Statement is incorporated herein by reference in response to this item.

**Equity Compensation Plan Information** 

The following table sets forth information as of December 31, 2025 with respect to compensation plans under which our common shares may be issued:

**Securities authorized for issuance under equity compensation plans**

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| | | | |
|:---|:---|:---|:---|
| | Number of securities to be issued<br>upon exercise of<br> outstanding options, <br>warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities<br> remaining available for<br> future issuance under <br>equity compensation plans <br>(excluding securities<br>reflected in column (a)) |
| Plan category | (a) | (b) | (c) (1) |
| Equity compensation plans approved by security holders | 0 | $0.00 | 1281160 |
| Equity compensation plans not approved by security holders | N/A | N/A | N/A |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The securities included in this column are available for issuance under the First Financial Bancorp. 2020 Stock Plan, which was approved by the shareholders at the 2020 Annual Meeting.

**Item 13. Certain Relationships and Related Transactions.**

The information appearing in Note 15 - Related Parties Transactions in the Notes to Consolidated Financial Statements included in First Financial's 2025 Annual Report to Shareholders (included as Exhibit 13 of this report) is incorporated herein by reference in response to this item. The information appearing under the headings "Director Independence" and "Corporate Governance-Transactions with Related Parties" in First Financial's Proxy Statement is incorporated herein by reference in response to this item.

**Item 14. Principal Accounting Fees and Services.**

Information appearing under the heading "Independent Registered Public Accounting Firm Fees" in First Financial's Proxy Statement is incorporated herein by reference in response to this item.

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

**PART IV**

**Item 15. Exhibits, Financial Statement Schedules.**

(a)&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements (and report thereon) listed below are incorporated herein by reference from First Financial's 2025 Annual Report to Shareholders (included as Exhibit 13 of this report) as noted:

Reports of Independent Registered Public Accounting Firm (PCAOB ID 173) - Incorporated by reference from First Financial's 2025 Annual Report

Consolidated Balance Sheets as of December 31, 2025 and 2024 - Incorporated by reference from First Financial's 2025 Annual Report

Consolidated Statements of Income for years ended December 31, 2025, 2024 and 2023 - Incorporated by reference from First Financial's 2025 Annual Report

Consolidated Statements of Comprehensive Income (Loss) for years ended December 31, 2025, 2024 and 2023 - Incorporated by reference from First Financial's 2025 Annual Report

Consolidated Statements of Changes in Shareholders' Equity for years ended December 31, 2025, 2024 and 2023 - Incorporated by reference from First Financial's 2025 Annual Report

Consolidated Statements of Cash Flows for years ended December 31, 2025, 2024 and 2023 - Incorporated by reference from First Financial's 2025 Annual Report

Notes to Consolidated Financial Statements - Incorporated by reference from First Financial's 2025 Annual Report

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Financial Statement Schedules: Schedules to the consolidated financial statements required by Regulation S-X are not required under the related instructions, or are inapplicable, and therefore have been omitted

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits:

The documents listed below are filed/furnished with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference as noted:

Exhibit

<u>Number</u>

2.1 <u>[Agreement and Plan of Merger, dated July 25, 2017 between First Financial Bancorp. and MainSource Financial Group, Inc. (Incorporated by reference from Exhibit 2.1 to the Current Report on Form 8-K filed on July 27, 2017) (certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000114420417038698/v471487_ex2-1.htm)</u>

2.2 <u>[Agreement and Plan of Merger dated as of June 18, 2019, by and among First Financial Bancorp., First Financial Bank, Wallace Merger Sub, LLC, Bannockburn Global Forex, LLC and Fortis Advisors, LLC, solely in its capacity as Member Representative (filed as Exhibit 1.1 to First Financial's Current Report on Form 8-K filed on June 19, 2019) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000110465919036292/a19-11745_1ex1d1.htm)</u>

2.3 <u>[Amendment No. 1 to Agreement and Plan of Merger, dated as of August 6, 2019, by and among First Financial Bancorp., First Financial Bank, Wallace Merger Sub, Bannockburn Global Forex, LLC, and Fortis Advisors, LLC, solely in its capacity as the Member Representative (Incorporated by reference from Exhibit 2.1 to the Current Report on Form 8-K filed on August 6, 2019)(/File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895519000058/ex21amendno1toplanandagree.htm)</u>

2.4 <u>[Amendment No. 2 to Agreement and Plan of Merger, dated as of August 29, 2019, by and among First Financial Bancorp., First Financial Bank, Wallace Merger Sub LLC, Bannockburn Global Forex, LLC, and Fortis Advisors, LLC, solely in its capacity as the Member Representative (filed as Exhibit 2.1 to First Financial's Current Report on Form 8-K filed on September 3, 2019, and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/708955/000070895519000067/ex21amendno2-mergeragr.htm)</u>

2.5 <u>[Stock Purchase Agreement, dated as of December 6, 2021, by and among First Financial Bancorp., First Financial Bank, Summit Funding Group, Inc., the Sellers (as defined therein), and Richard L. Ross, as Sellers' Representative (Incorporated by reference from Exhibit 2.1 to the Current Report on Form 8-K filed on December 7, 2021) (certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000110465921147039/tm2134749d1_ex2-1.htm)</u>

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

2.6 <u>[Stock Purchase Agreement by and between First Financial Bancorp. and Ohio Farmers Insurance Company, dated as of June 23, 2025 (schedules to the Stock Purchase Agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K) (filed as Exhibit 2.1 to the Form 8-k filed on June 23, 2025 and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/708955/000070895525000057/executionversion-stockpu.htm)</u>

2.7 <u>[Agreement and Plan of Merger by and between First Financial Bancorp. and BankFinancial Corporation, dated as of August 11, 2025 (schedules to the Agreement and Plan of Merger have been omitted pursuant to Item 601(a)(5) of Regulation S-K) (filed as Exhibit 2.1 to the Form 8-k filed on August 11, 2025 and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/708955/000070895525000074/americas1103544939v13-me.htm)</u>

3.1 <u>[Amended Articles of Incorporation of First Financial Bancorp (reflecting all amendments filed with the Ohio Secretary of State) \[for purposes of SEC reporting compliance only - not filed with the Ohio Secretary of State\] (filed as exhibit 3.2 to the Form S-3 on July 31, 2014 and incorporated hereby by reference)(File No. 333-197771).](https://www.sec.gov/Archives/edgar/data/708955/000114420414046172/v385117_ex3-2.htm)</u>

3.2 <u>[Amended and Restated Regulations of First Financial Bancorp, amended as of July 28, 2015 (filed as Exhibit 3.1 to the Form 8-K filed on July 29, 2015 and incorporated herein by reference) (File No. 000-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895515000044/ex31amendedandrestatedregu.htm)</u>

4.1 <u>[Indenture, dated as of August 25, 2015, by and between First Financial Bancorp. and Wells Fargo Bank, National Association, as Trustee. (filed as Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed on August 26, 2015, and incorporated herein by reference) (File No. 000-34762).](https://www.sec.gov/Archives/edgar/data/708955/000114420415052045/v419118_ex4-1.htm)</u>

4.2 <u>[Supplemental Indenture, dated as of August 25, 2015, by and between First Financial Bancorp. and Wells Fargo Bank, National Association, as Trustee. (filed as Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed on August 26, 2015, and incorporated herein by reference) (File No. 000-34762).](https://www.sec.gov/Archives/edgar/data/708955/000114420415052045/v419118_ex4-2.htm)</u>

4.3 <u>[Form of 5.125% Subordinated Note due 2025 (included as part of Exhibit 4.4 to this Annual Report).](https://www.sec.gov/Archives/edgar/data/708955/000114420415052045/v419118_ex4-2.htm)</u>

4.4 <u>[Indenture dated as of December 19, 2002 between MainSource Financial Group, Inc., as issuer, and State Street Bank and Trust Company of Connecticut, N.A., as trustee, re: floating rate junior subordinated deferrable interest debentures due 2032 (incorporated by reference to Exhibit 4.6 to the Annual Report on Form 10-K of MainSource Financial Group, Inc. for the fiscal year ended December 31, 2002 filed March 28, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000214/ex4-6.txt)</u>

4.5 <u>[Amended and Restated Declaration of Trust dated as of December 19, 2002 among State Street Bank and Trust Company of Connecticut, N.A., as institutional trustee, MainSource Financial Group, Inc., as sponsor, and James L. Saner Sr., Donald A. Benziger and James M. Anderson, as administrators (incorporated by reference to Exhibit 4.7 to the Annual Report on Form 10-K of MainSource Financial Group, Inc. for the fiscal year ended December 31, 2002 filed March 28, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000214/ex4-7.txt)</u>

4.6 <u>[Guarantee Agreement dated as of December 19, 2002 between MainSource Financial Group, Inc., and State Street Bank and Trust Company of Connecticut, N.A (incorporated by reference to Exhibit 4.8 to the Annual Report on Form 10-K of MainSource Financial Group, Inc. for the fiscal year ended December 31, 2002 filed March 28, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000214/ex4-8.txt)</u>

4.7 <u>[Indenture dated as of April 1, 2003 between MainSource Financial Group, Inc., as issuer, and U.S. Bank, N.A., as trustee, re: floating rate junior subordinated deferrable interest debentures due 2033 (incorporated by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q of MainSource Financial Group, Inc. for the quarter ended June 30, 2003 filed August 14, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000327/ex4-1.txt)</u>

4.8 <u>[Amended and Restated Declaration of Trust dated as of April 1, 2003 among U.S. Bank, N.A., as institutional trustee, MainSource Financial Group, Inc., as sponsor, and James L. Saner Sr., Donald A. Benziger and James M. Anderson, as administrators (incorporated by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q of MainSource Financial Group, Inc. for the quarter ended June 30, 2003 filed August 14, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000327/ex4-2.txt)</u>

4.9 <u>[Guarantee Agreement dated as of April 1, 2003 between MainSource Financial Group, Inc., and U.S. Bank, N.A (incorporated by reference to Exhibit 4.3 to the Quarterly Report on Form 10-Q of MainSource Financial Group, Inc. for the quarter ended June 30, 2003 filed August 14, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000327/ex4-3.txt)</u>

4.10 <u>[Indenture dated as of June 12, 2003 between MainSource Financial Group, Inc., as issuer, and The Bank of New York, as trustee, re: rate junior subordinated deferrable interest debentures due (incorporated by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q of MainSource Financial Group, Inc. for the quarter ended June 30, 2003 filed August 14, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000327/ex4-4.txt)</u>

4.11 <u>[Amended and Restated Declaration of Trust dated as of June 12, 2003 among The Bank of New York, as institutional trustee, MainSource Financial Group, Inc., as sponsor, and James L. Saner Sr., Donald A. Benziger and James M. Anderson, as administrators (incorporated by reference to Exhibit 4.5 to the Quarterly Report on Form 10-Q of MainSource Financial Group, Inc. for the quarter ended June 30, 2003 filed August 14, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000327/ex4-5.txt)</u>

4.12 <u>[Guarantee Agreement dated as of June 12, 2003 between MainSource Financial Group, Inc., and The Bank of New York (incorporated by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q of MainSource Financial Group, Inc. for the quarter ended June 30, 2003 filed August 14, 2003 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000092627403000327/ex4-6.txt)</u>

4.13 <u>[Form of Amended and Restated Declaration of Trust dated as of October 13, 2006, of MainSource Statutory Trust IV, among MainSource Financial Group, Inc. as sponsor, Wells Fargo Delaware Trust Company as Delaware trustee and Wells Fargo Bank, National Association, as institutional trustee (incorporated by reference to Exhibit 10.1 to the periodic report on Form 8-K of MainSource Financial Group, Inc. filed October 17, 2006 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000110465906067003/a06-21335_1ex10d1.htm)</u>

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

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| | |
|:---|:---|
| 4.14 | <u>[Form of Indenture dated as of October 13, 2006, between MainSource Financial Group, Inc. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 10.2 to the periodic report on Form 8-K of MainSource Financial Group, Inc. filed October 17, 2006 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000110465906067003/a06-21335_1ex10d2.htm)</u> |
| 4.15 | <u>[Form of Guarantee Agreement dated as of October 13, 2006, between MainSource Financial Group, Inc., as guarantor, and Wells Fargo Bank, National Association, as guarantee trustee (incorporated by reference to Exhibit 10.3 to the periodic report on Form 8-K of MainSource Financial Group, Inc. filed October 17, 2006 with the Commission).](https://www.sec.gov/Archives/edgar/data/720002/000110465906067003/a06-21335_1ex10d3.htm)</u> |
| 4.16 | <u>[Second Supplemental Indenture, dated April 30, 2020, between First Financial Bancorp. and Wells Fargo Bank, National Association (Incorporated by reference from Exhibit 4.2 to the Current Report on Form 8-K filed on April 30, 2020)(File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000110465920054136/tm2015795d5_ex4-2.htm)</u> |
| 4.17 | <u>[Form of 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (Included in Exhibit 4.19 of this Form 10-K)(Incorporated by reference from Exhibit 4.3 to the Current Report on Form 8-K filed on April 30, 2020) (File No. 001-34762).)](https://www.sec.gov/Archives/edgar/data/708955/000110465920054136/tm2015795d5_ex4-2.htm)</u> |
| 4.18 | <u>[Description of Registrant's Securities (filed as Exhibit 4.19 to the Annual Report on Form 10-K filed on February 221, 2020).](https://www.sec.gov/Archives/edgar/data/708955/000070895520000011/a201910-kex419.htm)</u> |
| 4.19 | <u>[Underwriting Agreement, dated as of November 6, 2025, by and among First Financial Bancorp., First Financial Bank, Keefe, Bruyette & Woods, Inc. and Janney Montgomery Scott LLC (Incorporated by reference to Exhibit 1.1 of First Financial Bancorp.'s Form 8-k filed on November 10, 2025) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000119312525274210/d67495dex11.htm)</u> |
| 4.20 | <u>[Subordinated Indenture, dated as of November 5, 2025, between First Financial Bancorp. and Wilmington Trust, National Association (incorporated by reference to Exhibit 4.5 of First Financial Bancorp.'s Registration Statement on Form S-3 filed on November 5, 2025)](https://www.sec.gov/Archives/edgar/data/708955/000119312525267246/d52457dex45.htm)</u> |
| 4.21 | <u>[First Supplemental Indenture, dated as of November 10, 2025, between First Financial Bancorp. and Wilmington Trust, National Association (Incorporated by reference to Exhibit 4.2 of First Financial Bancorp.'s Form 8-k filed on November 10, 2025) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000119312525274210/d67495dex42.htm)</u> |
| 4.22 | <u>[Form of 6.375% Fixed-to-Floating Rate Subordinated Notes due 2035 (included in Exhibit 4.2 of First Financial Bancorp.'s Form 8-k filed on November 10, 2025) (incorporated by reference to Exhibit 4.3 First Financial Bancorp.'s Form 8-k filed on November 10, 2025) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000119312525274210/d67495dex42.htm)</u> |
| 10.1 | <u>[Form of Executive Supplemental Retirement Agreement (filed as Exhibit 10.7 to the Form 10-Q for the quarter ended March 31, 2010 and incorporated herein by reference) (File No. 000-12379).\*](https://www.sec.gov/Archives/edgar/data/708955/000114420410025812/v184014_ex10-7.htm)</u> |
| 10.2 | <u>[Form of Endorsement Method Split Dollar Agreement (filed as Exhibit 10.8 to the Form 10-Q for the quarter ended March 31, 2010 and incorporated herein by reference) (File No. 000-12379).\*](https://www.sec.gov/Archives/edgar/data/708955/000114420410025812/v184014_ex10-8.htm)</u> |
| 10.3 | <u>[First Financial Bancorp. Key Executive Short Term Incentive Plan Amended and Restated March 10, 2015 (originally established in 2011)(filed as Exhibit 10.1 to the Form 8-K on May 25, 2016 and incorporated herein by reference) (File No. 001-34762).\*](https://www.sec.gov/Archives/edgar/data/708955/000070895516000123/ex101ffbckeyexecutiveshort.htm)</u> |
| 10.4 | <u>[Employment and Non-Competition Agreement between Archie M. Brown, Jr. and First Financial Bancorp. and First Financial bank, dated as of July 25, 2017 (filed as Exhibit 10.1 of the Registrant's Current Report on Form 8-K filed on July 27, 2017 and incorporated herein by reference) (File No. 001-34762).\*](https://www.sec.gov/Archives/edgar/data/708955/000114420417038698/v471487_ex10-1.htm)</u> |
| 10.5 | <u>[Severance and Change in Control Agreement between James M. Anderson and First Financial Bank dated September 18, 2017 (filed as exhibit 10.4 of the Registrant's Current Report on Form 8-K filed on September 22, 2017 and incorporated herein by reference) (File No. 001-34762).\*](https://www.sec.gov/Archives/edgar/data/708955/000070895517000081/ex104-andersoncicxseveranc.htm)</u> |
| 10.6 | <u>[First Financial Bancorp. 2020 Stock Plan (Incorporated by reference from Exhibit 10.1 to the Current Report on Form 8-K filed on May 27, 2020)(File No. 001-34762) .\*](https://www.sec.gov/Archives/edgar/data/708955/000070895520000027/ex1012020stockplan.htm)</u> |
| 10.7 | <u>[Form of Agreement for Restricted Stock Awards under the First Financial Bancorp. 2020 Stock Plan (filed as Exhibit 10.34 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2020 and incorporated herein by reference) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895521000014/a2020ex1034stockplan-rsaag.htm)</u> |
| 10.8 | <u>[Form of Agreement for Performance Stock Awards under the First Financial Bancorp. 2020 Stock Plan (filed as Exhibit 10.35 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2020 and incorporated herein by reference) (File No. 001-34762).\*](https://www.sec.gov/Archives/edgar/data/708955/000070895521000014/a2020ex1035stockplan-perfo.htm)</u> |
| 10.9 | <u>[Severance and Change in Control Agreement between Richard Dennen and First Financial Bank dated September 21, 2021 (filed as Exhibit 10.33 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference((File No. 001-34762).\*](https://www.sec.gov/Archives/edgar/data/708955/000070895522000016/ex1033-ffbcicxseverancexde)</u> |
| 10.10 | <u>[Credit Agreement by and between First Financial Bancorp. and Stifel Bank & Trust dated as of December 29, 2021 (filed as Exhibit 10.34 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference) (File No. 001-34762).\*.](https://www.sec.gov/Archives/edgar/data/708955/000070895522000016/ex1034-stifelbankfirstfina.htm)</u> |
| 10.11 | <u>[Pledge and Security Agreement by and between First Financial Bancorp. and Stifel Bank & Trust dated as of December 29, 2021 (filed as Exhibit 10.35 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895522000016/ex1035-stifelbankrefirstfi.htm)</u>\* |
| 13 | <u>[Registrant's annual report to shareholders for the year ended December 31, 202](ffbc-20251231_d2.htm)[5](ffbc-20251231_d2.htm)[.](ffbc-20251231_d2.htm)</u> |

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

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| | |
|:---|:---|
| 14.1 | <u>[First Financial Bancorp. Code of Conduct, as approved January 28, 2020 (filed as Exhibit 14.1 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895520000011/ex141codeofconduct.htm)</u> |
| 14.2 | <u>[Code of Ethics for the CEO and Senior Financial Officers (filed as Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on October 29, 2012 and incorporated herein by reference) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895512000066/ex102ceoandcfocodeofethics.htm)</u> |
| 19 | <u>[Insider Trading Policy, Revised as of January 28, 2025](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)[(file](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)[d as Exhibit 19 to the Registrants Annual Report of Form 10-K for the yea](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)[r ended December 31, 2024 and inco](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)[rporated here](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)[i](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)[n](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)[by reference) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895525000012/a2024ex-19x601insidertradi.htm)</u> |
| 21 | <u>[First Financial Bancorp. Subsidiaries](a202510-kexhibit21.htm)</u>. |
| 23 | <u>[Consent of Crowe LLP, Independent Registered Public Accounting Firm](a202510-kexhibit23.htm)</u>. |
| 31.1 | <u>[Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.](q4202510-kexh311.htm)</u> |
| 31.2 | <u>[Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.](q4202510-kexh312.htm)</u> |
| 32.1 | <u>[Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished herewith.](q4202510-kexh321.htm)</u> |
| 32.2 | <u>[Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished herewith.](q4202510-kexh322.htm)</u> |
| 97 | <u>[Recoupment of Compensation (Clawback) Policy (filed as Exhibit 97 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 202](https://www.sec.gov/Archives/edgar/data/708955/000070895524000018/ex-97recoupmentofcompensat.htm)[3](https://www.sec.gov/Archives/edgar/data/708955/000070895524000018/ex-97recoupmentofcompensat.htm)[and incorporated herein by reference) (File No. 001-34762).](https://www.sec.gov/Archives/edgar/data/708955/000070895524000018/ex-97recoupmentofcompensat.htm)</u> |
| 101 | Financial statements from the Annual Report on Form 10-K of the Company for the year ended December 31, 2025, formatted in inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Changes in Shareholders' Equity, and (vi) Notes to Consolidated Financial Statements, as blocks of text and in detail.\*\* |
| 104 | The cover page from the Annual Report on Form 10-K Report for the Company for the year ended December 31, 2025, formatted in inline XBRL and contained in Exhibit 101. |

---

First Financial will furnish, without charge, to a security holder upon request a copy of the documents, portions of which are incorporated by reference (Annual Report to Shareholders and Proxy Statement), and will furnish any other Exhibit upon the payment of reproduction costs.

\* Compensation plan(s) or arrangement(s).

\*\* As provided in Rule 406T of Regulation S-T, this information shall not be deemed "filed" for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections.

**Item 16. Form 10-K Summary.**

None.

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<u>[**TABLE OF CONTENTS**](#ia7836e719ec34b79b2f8879125dfeda8_7)</u>

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FIRST FINANCIAL BANCORP.

---

| | |
|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;/s/ Archie M. Brown |
| Archie M. Brown, Director | Archie M. Brown, Director |
| President and Chief Executive Officer | President and Chief Executive Officer |

---

Date <u>2/19/2026</u>

Pursuant to the requirements of the Securities Exchange Act of 1934, the report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | | |
|:---|:---|:---|:---|
| /s/ Archie M. Brown | /s/ Archie M. Brown | &nbsp;&nbsp;&nbsp;/s/ James M. Anderson | &nbsp;&nbsp;&nbsp;/s/ James M. Anderson |
| Archie M. Brown, Director | Archie M. Brown, Director | James M. Anderson, Executive Vice President, Chief | James M. Anderson, Executive Vice President, Chief |
| President and Chief Executive Officer | President and Chief Executive Officer | Financial Officer and Chief Operating Officer | Financial Officer and Chief Operating Officer |
| Date | 2/19/2026 | Date | 2/19/2026 |
| &nbsp;&nbsp;&nbsp;/s/ Claude E. Davis | &nbsp;&nbsp;&nbsp;/s/ Claude E. Davis | &nbsp;&nbsp;&nbsp;/s/ Scott T. Crawley | &nbsp;&nbsp;&nbsp;/s/ Scott T. Crawley |
| Claude E. Davis, Director | Claude E. Davis, Director | Scott T. Crawley, Senior Vice President and Controller | Scott T. Crawley, Senior Vice President and Controller |
| Chairman of the Board | Chairman of the Board | (Principal Accounting Officer) | (Principal Accounting Officer) |
| Date | 2/19/2026 | Date | 2/19/2026 |
| &nbsp;&nbsp;&nbsp;/s/ Anne L. Arvia | &nbsp;&nbsp;&nbsp;/s/ Anne L. Arvia | &nbsp;&nbsp;&nbsp;/s/ Vincent A. Berta | &nbsp;&nbsp;&nbsp;/s/ Vincent A. Berta |
| &nbsp;&nbsp;&nbsp;Anne L. Arvia, Director | &nbsp;&nbsp;&nbsp;Anne L. Arvia, Director | &nbsp;&nbsp;Vincent A. Berta, Director | &nbsp;&nbsp;Vincent A. Berta, Director |
| Date | 2/19/2026 | &nbsp;&nbsp;&nbsp;Date | 2/19/2026 |
| &nbsp;&nbsp;&nbsp;/s/ William J. Kramer | &nbsp;&nbsp;&nbsp;/s/ William J. Kramer | &nbsp;&nbsp;&nbsp;/s/ Dawn C. Morris | &nbsp;&nbsp;&nbsp;/s/ Dawn C. Morris |
| &nbsp;&nbsp;William J. Kramer, Director | &nbsp;&nbsp;William J. Kramer, Director | &nbsp;&nbsp;Dawn C. Morris, Director | &nbsp;&nbsp;Dawn C. Morris, Director |
| Date | 2/19/2026 | Date | 2/19/2026 |
| &nbsp;&nbsp;&nbsp;/s/ Thomas M. O'Brien | &nbsp;&nbsp;&nbsp;/s/ Thomas M. O'Brien | &nbsp;&nbsp;&nbsp;/s/ Andre T. Porter | &nbsp;&nbsp;&nbsp;/s/ Andre T. Porter |
| &nbsp;&nbsp;Thomas M. O'Brien, Director | &nbsp;&nbsp;Thomas M. O'Brien, Director | &nbsp;&nbsp;Andre T. Porter, Director | &nbsp;&nbsp;Andre T. Porter, Director |
| Date | 2/19/2026 | Date | 2/19/2026 |
| &nbsp;&nbsp;&nbsp;/s/ Maribeth S. Rahe | &nbsp;&nbsp;&nbsp;/s/ Maribeth S. Rahe | &nbsp;&nbsp;&nbsp;/s/ Gary W. Warzala | &nbsp;&nbsp;&nbsp;/s/ Gary W. Warzala |
| &nbsp;&nbsp;Maribeth S. Rahe, Director | &nbsp;&nbsp;Maribeth S. Rahe, Director | &nbsp;&nbsp;Gary W. Warzala, Director | &nbsp;&nbsp;Gary W. Warzala, Director |
| Date | 2/19/2026 | Date | 2/19/2026 |

---

## Ex-13

?xml version='1.0' encoding='ASCII'? ffbc-20251231_d2

**EXHIBIT 13**

**Glossary of Abbreviations and Acronyms**

First Financial Bancorp has identified the following list of abbreviations and acronyms that are used in the Notes to Consolidated Financial Statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations.

---

| | | | |
|:---|:---|:---|:---|
| ABL | Asset backed loans | GAAP | U.S. Generally Accepted Accounting Principles |
| ACL or Allowance | Allowance for credit losses | GNMA | Government National Mortgage Association |
| ACH | Automated clearing house | GRC | Governance, Risk and Compliance |
| AFS | Available-for-sale | HTC | Historic tax credit |
| ALCO | Asset Liability Committee | HTM | Held-to-maturity |
| AOCI | Accumulated other comprehensive income | Insignificant | Less than $0.1 million |
| ASC | Accounting standards codification | IRLC | Interest Rate Lock Commitment |
| ASU | Accounting standards update | KPI | Key performance indicator |
| ATM | Automated teller machine | KRI | Key risk indicator |
| Bank | First Financial Bank | LGD | Loss given default |
| Basel III | Basel Committee regulatory capital reforms, Third Basel Accord | LIHTC | Low income housing tax credit |
| Bp/bps | Basis point(s) | LTV | Loan to value |
| CAO | Chief Administrative Officer | MBS | Mortgage-backed securities |
| CDs | Certificates of deposit | MSR | Mortgage servicing rights |
| C&I | Commercial & industrial | MD&A | Management's Discussion and Analysis of Financial Condition and Results of Operations |
| CFTF | Contingency funding task force | MSFG | MainSource Financial Group, Inc. |
| CMO | Collateralized mortgage obligations | N/A | Not applicable |
| CODM | Chief Operating Decision Maker | NDFI | Non-depository financial institution |
| CPI | Consumer Price Index | NII | Net interest income |
| CRE | Commercial real estate | NMTC | New markets tax credit |
| CRM | Credit Risk Management | N/M | Not meaningful |
| CSR | Corporate Social Responsibility | OCI | Other comprehensive income |
| Company | First Financial Bancorp. | ODFI | Ohio Department of Financial Institutions |
| Dodd-Frank | Dodd-Frank Wall Street Reform and Consumer Protection Act | OREO | Other real estate owned |
| EAD | Exposure at Default | PAM | Proportional amortization method |
| ERISA | Employee Retirement Income Security Act | PCA | Prompt corrective action |
| ERM | Enterprise Risk Management | PCAOB | Public Company Accounting Oversight Board |
| ERMC | Enterprise Risk Management Committee | PCD | Purchase credit deteriorated |
| EVE | Economic value of equity | PCI | Purchase credit impaired |
| Fair Value Topic | FASB ASC Topic 825, Financial Instruments | PD | Probability of default |
| FASB | Financial Accounting Standards Board | R&S | Reasonable and supportable |
| FDIC | Federal Deposit Insurance Corporation | ROU | Right-of-use |
| FDM | Financial Difficulty Modification | SEC | United States Securities and Exchange Commission |
| FHLB | Federal Home Loan Bank | SFG or Summit | Summit Funding Group, Inc |
| FHLMC | Federal Home Loan Mortgage Corporation | SOFR | Secured Overnight Financing Rate |
| First Financial | First Financial Bancorp. | Topic 842 | FASB ASC Topic 842, Leasing |
| FNMA | Federal National Mortgage Association | TTC | Through the cycle |
| Form 10-K | First Financial Bancorp. Annual Report on Form 10-K | USD | United States dollars |
| FRB | Federal Reserve Bank |  |  |

---

**First Financial Bancorp** 2025 Annual Report **1**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

This annual report contains forward-looking statements. See the Forward-Looking Statements section that follows for further information on the risks and uncertainties associated with forward-looking statements.

The following discussion and analysis is presented by management to facilitate the understanding of the financial condition, cash flows, changes in financial condition and results of operations of First Financial Bancorp. Management's discussion and analysis identifies trends and material changes that occurred during the reporting periods presented and should be read in conjunction with the Consolidated Financial Statements and accompanying Notes.

Certain reclassifications of prior years' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings, total assets, liabilities and shareholders' equity.

**EXECUTIVE SUMMARY**

First Financial Bancorp. is a $21.1 billion financial holding company headquartered in Cincinnati, Ohio. The Company

primarily operates through First Financial Bank, an Ohio-chartered commercial bank with 134 full service banking centers at

December 31, 2025. 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 $3.9 billion in assets under management as of December 31, 2025, and provides the following services: financial planning, investment management, trust administration, estate settlement, business succession planning services, brokerage services and retirement planning.

Additional information about First Financial, including its products, services and banking locations, is available on the Company's website at www.bankatfirst.com.

The major components of First Financial's operating results for 2025, 2024 and 2023 are summarized in Table 1 – Financial Summary and are discussed in greater detail in the sections that follow.

**MARKET STRATEGY**

First Financial develops a competitive advantage by utilizing a local market focus to provide superior service and build long-term relationships with clients while helping them achieve greater financial success. First Financial serves a combination of

metropolitan and community markets in Ohio, Indiana, Kentucky and Illinois through its full-service banking centers. First

Financial's investment in community markets is an important part of the Bank's core funding base and has historically provided

stable, low-cost funding sources.

First Financial also has certain specialty lending platforms that extend beyond the geographic footprint of its banking centers. These specialty finance businesses provide insurance premium financing, equipment lease financing, franchise financing and funding to clients within the financial services industry.

First Financial's market selection process includes multiple factors, but markets are primarily chosen for their potential for long-term profitability and growth. First Financial intends to concentrate plans for future growth and capital investment within its current markets, and will continue to evaluate additional growth opportunities in metropolitan markets located within, or in close proximity to, the Company's current geographic footprint. Additionally, First Financial may assess strategic acquisitions that provide product line extensions or industry verticals that complement its existing business and diversify its product suite and revenue streams.

**BUSINESS COMBINATIONS**

**Westfield Bancorp**

First Financial Bancorp acquired Westfield Bancorp, Inc., an Ohio corporation, effective November 1, 2025. Upon completion of the transaction, Westfield Bank, FSB, a federal savings bank, and a wholly owned subsidiary of Westfield Bancorp, merged into First Financial Bank. Pursuant to the Purchase Agreement, First Financial acquired all of the issued and outstanding equity securities of Westfield Bancorp in exchange for a cash payment of $260.0 million and 2,753,094 shares of First Financial

**2 First Financial Bancorp** 2025 Annual Report

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common stock, equal to $64.4 million based on the Company's stock price on the date the transaction, for a total purchase price of $324.4 million.

This acquisition supplements First Financial's existing commercial banking and wealth management presence in Northeast Ohio by adding all seven of Westfield's retail banking locations and its commercial, insurance agency and private banking services.

The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value for the Westfield acquisition.

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Westfield |
| **Purchase consideration** |  |
| Cash consideration | $260000 |
| Stock consideration | 64450 |
| &nbsp;&nbsp;&nbsp;Total purchase consideration | 324450 |
| **Assets acquired** |  |
| Cash | 72814 |
| Investment securities available-for-sale | 301007 |
| Other investments | 25491 |
| Loan, net of ACL | 1571573 |
| Premises and equipment | 6026 |
| Core deposit intangible asset | 47065 |
| Other intangible assets | 1105 |
| Other assets | 103646 |
| &nbsp;&nbsp;&nbsp;Total assets acquired | 2128727 |
| **Liabilities assumed** |  |
| Deposits | 1790524 |
| FHLB advances | 80000 |
| Long-term borrowings | 1920 |
| Other liabilities | 23701 |
| &nbsp;&nbsp;&nbsp;Total liabilities assumed | 1896145 |
| Net identifiable assets | 232582 |
| &nbsp;&nbsp;&nbsp;**Goodwill** | $91868 |

---

**Agile Premium Finance**

In February 2024, First Financial completed its acquisition of Agile Premium Finance for $96.9 million in an all cash transaction. Headquartered in Lincolnshire, IL, Agile originates commercial loans for the payment of annual property and casualty insurance for businesses. Agile is among industry leaders in the premium finance lending space and is active in all 50 states. Agile loans are secured by the unearned premium of the insurance policies and have an average original term of approximately ten months. Upon completion of the transaction, Agile became a division of the Bank and continues to operate as Agile Premium Finance, taking advantage of its existing brand recognition within the insurance premium financing industry.

The Agile transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. Fair value measurements for the Agile transaction were considered final as of February 2025.

**First Financial Bancorp** 2025 Annual Report **3**

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The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value for the Agile acquisition.

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Agile |
| **Purchase consideration** |  |
| Cash consideration | $96887 |
| **Assets acquired** |  |
| Commercial loans | 93353 |
| Premises and equipment | 651 |
| Other intangible assets | 3797 |
| &nbsp;&nbsp;&nbsp;Total assets acquired | 97801 |
| **Liabilities assumed** |  |
| Other liabilities | 2702 |
| &nbsp;&nbsp;&nbsp;Total liabilities assumed | 2702 |
| Net identifiable assets | 95099 |
| &nbsp;&nbsp;&nbsp;**Goodwill** | $1788 |

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**BankFinancial Corporation**

In August 2025, the First Financial entered into an Agreement and Plan of Merger with BankFinancial Corporation, a Maryland corporation. The transaction was completed subsequent to the end of the year, effective January 1, 2026, at which time BankFinancial, National Association, a national banking association, and a wholly owned subsidiary of BankFinancial Corporation, merged into First Financial Bank. Pursuant to the merger agreement, each share of BankFinancial Corporation common stock was converted into 0.48 shares of First Financial common stock, or 5,980,878 total shares, valuing the transaction at $149.6 million based on the closing price of First Financial stock at December 31, 2025.

As of December 31, 2025, BankFinancial Corporation operated 17 full-service banking offices and had, on an unaudited basis, approximately $1.4 billion of total assets, $700.2 million of total loans and $1.2 billion of total deposits. First Financial intends to sell $449.3 million of multi-family loans that were initially acquired in the BankFinancial transaction. This loan sale is expected to occur in the first half of 2026.

This acquisition expands First Financial's presence in the Chicago market with a strong core deposit franchise while supplementing its existing commercial banking and wealth management lines of business.

Given the transaction closed subsequent to December 31, 2025, the BankFinancial acquisition had no impact on First Financial's Consolidated Financial Statements as presented in this Annual Report on Form 10-K.

For further information on the BankFinancial, Westfield and Agile acquisitions, see Note 24 – Business Combinations in the Notes to Consolidated Financial Statements.

**4 First Financial Bancorp** 2025 Annual Report

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| | | | |
|:---|:---|:---|:---|
| **Table 1 • Financial Summary** | | | |
|  | December 31, | December 31, | December 31, |
| *(Dollars in thousands, except per share data)* | 2025 | 2024 | 2023 |
| **Summary of operations** |  |  |  |
| Interest income | $1001904 | $1002095 | $903004 |
| Tax equivalent adjustment <sup>(1)</sup> | 4934 | 5589 | 6356 |
| Interest income - tax equivalent <sup>(1)</sup> | 1006838 | 1007684 | 909360 |
| Interest expense | 359858 | 390085 | 275234 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income - tax equivalent** <sup>(1)</sup> | $646980 | $617599 | $634126 |
| Interest income | $1001904 | $1002095 | $903004 |
| Interest expense | 359858 | 390085 | 275234 |
| **Net interest income** | 642046 | 612010 | 627770 |
| Provision for credit losses | 37667 | 47659 | 43107 |
| Noninterest income | 257438 | 223568 | 212422 |
| Noninterest expenses | 540547 | 519595 | 478489 |
| Income before income taxes | 321270 | 268324 | 318596 |
| Income tax expense | 65665 | 39494 | 62733 |
| **Net income** | $255605 | $228830 | $255863 |
| **Per share data** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Earnings per common share** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $2.68 | $2.42 | $2.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $2.66 | $2.40 | $2.69 |
| &nbsp;&nbsp;&nbsp;**Cash dividends declared per common share** | $0.98 | $0.94 | $0.92 |
| Average common shares outstanding – basic (in thousands) | 95285 | 94405 | 93939 |
| Average common shares outstanding – diluted (in thousands) | 96158 | 95406 | 95096 |
| **Selected year-end balances** |  |  |  |
| Total assets | $21129379 | $18570261 | $17532900 |
| Earning assets | 18198402 | 15880521 | 14966741 |
| Investment securities | 4160041 | 3375334 | 3231392 |
| Total loans and leases | 13424070 | 11761778 | 10933176 |
| Interest-bearing demand deposits | 3360613 | 3095724 | 2993219 |
| Savings deposits | 5973532 | 4948768 | 4331228 |
| Time deposits | 3622227 | 3152265 | 2718390 |
| Noninterest-bearing demand deposits | 3465470 | 3132381 | 3317960 |
| Total deposits | 16421842 | 14329138 | 13360797 |
| Short-term borrowings | 675332 | 755452 | 937814 |
| Long-term debt | 514052 | 347509 | 344115 |
| Shareholders' equity | 2769216 | 2438041 | 2267974 |
| **Select Financial Ratios** |  |  |  |
| Average loans to average deposits <sup>(2)</sup> | 81.49% | 83.07% | 82.04% |
| Net charge-offs to average loans and leases | 0.25% | 0.30% | 0.33% |
| Average shareholders' equity to average total assets | 13.55% | 13.15% | 12.53% |
| Average tangible shareholders' equity to average tangible assets | 8.17% | 7.48% | 6.51% |
| Return on average assets | 1.35% | 1.29% | 1.51% |
| Return on average equity | 9.98% | 9.78% | 12.01% |
| Return on average tangible shareholders' equity | 17.57% | 18.31% | 24.72% |
| Net interest margin | 3.95% | 4.02% | 4.36% |
| Net interest margin (tax equivalent basis) <sup>(1)</sup> | 3.98% | 4.05% | 4.40% |
| Dividend payout | 36.57% | 38.84% | 33.82% |
| Tangible book value per share | $15.74 | $14.15 | $12.38 |

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<sup>(1)</sup> Tax equivalent basis calculated using a 21% tax rate

<sup>(2)</sup> Includes loans held for sale

**First Financial Bancorp** 2025 Annual Report **5**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

**NON-GAAP FINANCIAL MEASURES**

The Company utilizes certain non-GAAP financial measures, which it believes provide useful insight to the reader of the Consolidated Financial Statements. These non-GAAP measures are intended to be supplemental to primary GAAP measures and should not be read in isolation or relied upon as a substitute for the primary GAAP measures.

For analytical purposes, net interest income is presented in the following table adjusted to a tax equivalent basis assuming a 21% marginal tax rate. Net interest income is disclosed on a tax equivalent basis to consistently reflect income from tax-exempt assets, such as municipal loans and investments, in order to facilitate a comparison between taxable and tax-exempt amounts. Management believes it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis as these measures provide useful information to make peer comparisons.

---

| | | | |
|:---|:---|:---|:---|
| **Table 2 • Non-GAAP - Net Interest Income** | | | |
|  | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Net interest income | $642046 | $612010 | $627770 |
| Tax equivalent adjustment | 4934 | 5589 | 6356 |
| &nbsp;&nbsp;&nbsp;**Net interest income - tax equivalent** | $646980 | $617599 | $634126 |
| Average earning assets | $16249717 | $15235566 | $14404909 |
| Net interest margin <sup>(1)</sup> | 3.95% | 4.02% | 4.36% |
| Net interest margin (FTE) <sup>(1)</sup> | 3.98% | 4.05% | 4.40% |

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<sup>(1)</sup> Calculated using net interest income divided by average earning assets

In addition to capital ratios defined by the U.S. banking agencies, First Financial considers various measures when evaluating

capital utilization and adequacy, including the return on average tangible shareholder's equity and the tangible common equity

ratio. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute

and comparative purposes and may be useful for evaluating the performance of a business as the ratios calculate the capital and

return available to common shareholders without the impact of intangible assets and their related amortization. As GAAP does

not include capital ratio measures, the Company believes there are no comparable GAAP financial measures to these ratios. These ratios are not formally defined by GAAP or codified in the federal banking regulations, and, therefore, they are considered to be non-GAAP financial measures.

First Financial encourages readers to consider its Consolidated Financial Statements in their entirety and not to rely on any single financial measure.

The following table reconciles non-GAAP capital ratios to GAAP:

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| | | | |
|:---|:---|:---|:---|
| **Table 3 • Non-GAAP - Capital Ratios** | | | |
|  | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Net income (a) | $255605 | $228830 | $255863 |
| Average total shareholders' equity | 2561769 | 2340056 | 2129751 |
| Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;Average goodwill | (1023315) | (1007363) | (1005805) |
| &nbsp;&nbsp;&nbsp;Average other intangibles | (83279) | (82940) | (88724) |
| &nbsp;&nbsp;&nbsp;&nbsp;Average tangible equity (b) | 1455175 | 1249753 | 1035222 |
| Total shareholders' equity | 2769216 | 2438041 | 2267974 |
| Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | (1099524) | (1007656) | (1005868) |
| &nbsp;&nbsp;&nbsp;Other intangibles | (118832) | (79291) | (83949) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending tangible equity (c) | 1550860 | 1351094 | 1178157 |

---

**6 First Financial Bancorp** 2025 Annual Report

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| | | | |
|:---|:---|:---|:---|
| **Table 3 • Non-GAAP - Capital Ratios** | | | |
|  | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Total assets | 21129379 | 18570261 | 17532900 |
| Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | (1099524) | (1007656) | (1005868) |
| &nbsp;&nbsp;&nbsp;Other intangibles | (118832) | (79291) | (83949) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending tangible assets (d) | 19911023 | 17483314 | 16443083 |
| Risk-weighted assets (e) | 15890363 | 14059215 | 13374177 |
| Total average assets | 18906942 | 17792014 | 16997223 |
| Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;Average goodwill | (1023315) | (1007363) | (1005805) |
| &nbsp;&nbsp;&nbsp;Average other intangibles | (83279) | (82940) | (88724) |
| &nbsp;&nbsp;&nbsp;&nbsp;Average tangible assets (f) | 17800348 | 16701711 | 15902694 |
| Ending common shares outstanding (g) | 98521726 | 95494840 | 95141244 |
| **Ratios** |  |  |  |
| Return on average tangible shareholders' equity (a)/(b) | 17.57% | 18.31% | 24.72% |
| Ending tangible shareholders' equity as a percent of: |  |  |  |
| &nbsp;&nbsp;Ending tangible assets (c)/(d) | 7.79% | 7.73% | 7.17% |
| &nbsp;&nbsp;Risk-weighted assets (c)/(e) | 9.76% | 9.61% | 8.81% |
| Average tangible shareholders' equity to average tangible assets (b)/(f) | 8.17% | 7.48% | 6.51% |
| Tangible book value per share (c)/(g) | $15.74 | $14.15 | $12.38 |

---

**OVERVIEW OF OPERATIONS**

Net income for the year ended December 31, 2025 was $255.6 million, resulting in earnings per diluted common share of $2.66. This compares to net income of $228.8 million and earnings per diluted common share of $2.40 in 2024. Return on average assets was 1.35% and 1.29% for 2025 and 2024, respectively. First Financial's return on average tangible shareholders' equity for 2025 was 17.57%, compared to 18.31% for 2024.

Net interest income in 2025 increased $30.0 million, or 4.9%, to $642.0 million during 2025, from $612.0 million in 2024, primarily driven by increased earning assets and lower funding costs. The net interest margin on a fully tax equivalent basis was 3.98% for 2025 compared to 4.05% in 2024.

Noninterest income increased $33.9 million, or 15.1%, to $257.4 million during 2025 from $223.6 million in 2024. The increase in 2025 was primarily driven by higher leasing business income, foreign exchange income, wealth management income and gains on the sales of loans.

Noninterest expenses increased $21.0 million, or 4.0%, from $519.6 million in 2024 to $540.5 million in 2025. This increase was largely driven by the Westfield acquisition as well as an increase in leasing business expenses and higher salaries and incentive compensation.

Income tax expense increased $26.2 million, or 66.3%, to $65.7 million in 2025 from $39.5 million in 2024, with the effective tax rate increasing to 20.4% in 2025 from 14.7% in 2024. The increase in the effective tax rate in 2025 was primarily related to the recognition of more tax credit investments in 2024.

Total loans increased $1.7 billion, or 14.1%, to $13.4 billion at December 31, 2025 from $11.8 billion at December 31, 2024, primarily driven by the acquisition of Westfield. Total deposits increased $2.1 billion, or 14.6%, to $16.4 billion as of

**First Financial Bancorp** 2025 Annual Report **7**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

December 31, 2025 from $14.3 billion at December 31, 2024 due to $1.8 billion of deposits acquired in the Westfield transaction and $302.2 million of organic growth during 2025.

The ACL on loans and leases was $186.5 million, or 1.39% of total loans at December 31, 2025, compared to $156.8 million, and 1.33% of total loans at December 31, 2024. First Financial recorded $36.5 million in provision expense during 2025, compared to $49.2 million in provision expense during 2024. Additionally, in accordance with the Company's early adoption of ASU 2025-08, the Company recorded a $23.7 million increase to the ACL, with a corresponding increase to Goodwill, to account for the expected losses on loans acquired in the Westfield transaction.

First Financial's operational results may be influenced by certain economic factors and conditions, such as market interest rates, industry competition, household and business spending levels, consumer confidence and the regulatory environment. For a more detailed discussion of the Company's operations, please refer to the sections that follow.

**NET INCOME**

**2025 vs. 2024.** First Financial's net income increased $26.8 million, or 11.7%, to $255.6 million in 2025, compared to net income of $228.8 million in 2024. The increase in 2025 was primarily related to a $30.0 million, or 4.9%, increase in net interest income, a $12.7 million, or 25.8%, decrease in provision expense and a $33.9 million, or 15.1%, increase in noninterest income, which were partially offset by a $21.0 million, or 4.0%, increase in noninterest expenses and a $26.2 million, or 66.3%, increase in income tax expense.

**2024 vs. 2023**. First Financial's net income decreased $27.0 million, or 10.6%, to $228.8 million in 2024, compared to net

income of $255.9 million in 2023. The decrease in 2024 was primarily related to a $15.8 million, or 2.5%, decrease in net

interest income, a $41.1 million, or 8.6%, increase in noninterest expenses and a $6.1 million, or 14.2%, increase in provision

expense, which were partially offset by a $11.1 million, or 5.2%, increase in noninterest income and a $23.2 million, or 37.0%,

decrease in income tax expense.

For more detail, refer to the Net interest income, Noninterest income, Noninterest expenses, Income taxes and Asset quality and allowance for credit losses sections that follow.

**NET INTEREST INCOME**

First Financial's net interest income for the years 2025, 2024 and 2023 is shown in Table 1 – Financial Summary.

First Financial's principal 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, less 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 borrowed money that support the earning assets. Earning assets consist of interest-bearing loans and leases to customers as well as marketable investment securities. First Financial's tax equivalent net interest margin was 3.98%, 4.05% and 4.40% for 2025, 2024 and 2023, respectively.

Table 5 – Volume/Rate Analysis - Tax Equivalent Basis describes the extent to which changes in interest rates as well as changes in the volume of earning assets and interest-bearing liabilities have affected First Financial's net interest income on a tax equivalent basis during the years presented. Nonaccrual loans and loans held for sale were included in the average loan balances used to determine the yields in Table 5 – Volume/Rate Analysis - Tax Equivalent Basis, which should be read in conjunction with Table 4 – Statistical Information.

Loan fees included in the interest income computation for 2025, 2024 and 2023 were $16.6 million, $16.2 million and $19.0 million, respectively. Interest income also included purchase accounting accretion of $3.8 million, $3.5 million and $4.2 million for 2025, 2024 and 2023, respectively.

**2025 vs. 2024.** Net interest income increased $30.0 million, or 4.9%, to $642.0 million in 2025 from $612.0 million in 2024. The increase in net interest income reflected an increase in earning asset balances and a decline in funding costs. These changes more than offset an increase in interest bearing liabilities and a decline in asset yields.

Net interest margin on a fully tax equivalent basis decreased 7 bps to 3.98% for 2025 compared to 4.05% in 2024. The net interest margin was strong throughout 2025, as earning asset growth helped to mitigate the impact from higher deposit balances.

**8 First Financial Bancorp** 2025 Annual Report

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Additionally, First Financial successfully managed funding costs, which decreased 45 bps during the year. This decline in funding costs mostly offset a 41 bp decline in asset yields.

Interest income declined $0.2 million in 2025 when compared to the prior year as the yield on earning assets decreased to 6.20% from 6.61%. Largely offsetting the decline in yields, average earning assets increased to $16.2 billion as of December 31, 2025 from $15.2 billion in 2024, primarily due to a $603.1 million increase in average loan balances.

Total interest expense decreased $30.2 million, or 7.7%, due to a 43 bp decrease in the cost of interest-bearing deposits, and a 12 bp decrease in the cost of average borrowings. These decreases were partially offset by a $953.6 million increase in average deposit balances and a $158.9 million decrease in average borrowings. The cost of interest-bearing deposits was 2.69% in 2025 compared to 3.12% for the same period in the prior year, and the cost of borrowed funds decreased to 5.48% in 2025 from 5.60% in 2024.

**2024 vs. 2023.** Net interest income decreased $15.8 million, or 2.5%, to $612.0 million in 2024 from $627.8 million in 2023,

as interest rates were stable during most of 2024. The decline in net interest income reflected an increase in interest bearing

liabilities and the rates paid on those liabilities, which more than offset an increase in earning asset balances and the rates

earned on those assets.

Net interest margin on a fully tax equivalent basis decreased 35 bps to 4.05% for 2024 compared to 4.40% in 2023 as funding

costs increased during the year. The net interest margin was strong throughout 2024, as earning asset growth helped to mitigate

the impact from higher funding costs and higher deposit balances. Funding costs increased 75 bps during the year while asset

yields increased 30 bps compared to 2023.

Interest income grew $99.1 million, or 11.0%, in 2024 when compared to the prior year as the yield on earning assets rose to

6.61% from 6.31%. Additionally, average earning assets increased to $15.2 billion as of December 31, 2024 from $14.4 billion

in 2023, primarily due to an $866.6 million increase in average loan balances.

Total interest expense increased $114.9 million, or 41.7%, due to a 94 bp increase in the cost of interest-bearing deposits

coupled with a $1.4 billion increase in those deposit balances, and a 22 bp increase in the cost of average borrowings. These

increases were partially offset by a $306.2 million decrease in average borrowings. The rate environment resulted in a

continued shift in deposit mix as customers migrated from lower-cost transaction accounts to higher cost deposit products,

while the increase in deposit balances led to the decrease in borrowings. The cost of interest-bearing deposits was 3.12% in

2024 compared to 2.18% for the same period in the prior year, and the cost of borrowed funds increased to 5.60% in 2024 from

5.38% in 2023.

**First Financial Bancorp** 2025 Annual Report **9**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Table 4 • Statistical Information**  | **Table 4 • Statistical Information**  | **Table 4 • Statistical Information**  | **Table 4 • Statistical Information**  | | | | | | |
|  | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
| *(Dollars in thousands)* | Average Balance | Interest | Average Yield | Average Balance | Interest | Average Yield | Average Balance | Interest | Average Yield |
| **Earning assets** |  |  |  |  |  |  |  |  |  |
| Loans and leases <sup>(1), (4)</sup> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Commercial and industrial <sup>(2)</sup> | 3968597 | 291872 | 7.35% | 3677979 | 294861 | 8.02% | 3447984 | 263632 | 7.65% |
| &nbsp;&nbsp;Lease financing <sup>(2)</sup> | 594144 | 38341 | 6.45% | 532212 | 36341 | 6.83% | 342243 | 25063 | 7.32% |
| &nbsp;&nbsp;&nbsp;Construction-real estate | 742597 | 53390 | 7.19% | 720031 | 57340 | 7.96% | 535715 | 41302 | 7.71% |
| &nbsp;&nbsp;Commercial-real estate <sup>(2)</sup> | 4053079 | 278337 | 6.87% | 4088127 | 307077 | 7.51% | 4038457 | 293353 | 7.26% |
| &nbsp;&nbsp;&nbsp;Residential-real estate | 1566236 | 80931 | 5.17% | 1400318 | 67974 | 4.85% | 1231507 | 54065 | 4.39% |
| &nbsp;&nbsp;&nbsp;Installment and other consumer | 1111677 | 78823 | 7.09% | 1014559 | 75657 | 7.46% | 970681 | 69016 | 7.11% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | 12036330 | 821694 | 6.83% | 11433226 | 839250 | 7.34% | 10566587 | 746431 | 7.06% |
| Investment securities <sup>(3)</sup> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxable | 3283685 | 148036 | 4.51% | 2845087 | 124936 | 4.39% | 2952767 | 125520 | 4.25% |
| &nbsp;&nbsp;Tax-exempt <sup>(2)</sup> | 325587 | 11386 | 3.50% | 384490 | 13715 | 3.57% | 489466 | 17596 | 3.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities <sup>(3)</sup> | 3609272 | 159422 | 4.42% | 3229577 | 138651 | 4.29% | 3442233 | 143116 | 4.16% |
| Interest-bearing deposits with other banks | 604115 | 25722 | 4.26% | 572763 | 29783 | 5.20% | 396089 | 19813 | 5.00% |
| &nbsp;&nbsp;&nbsp;**Total earning assets** | 16249717 | 1006838 | 6.20% | 15235566 | 1007684 | 6.61% | 14404909 | 909360 | 6.31% |
| **Nonearning assets** |  |  |  |  |  |  |  |  |  |
| Allowance for credit losses | (164569) |  |  | (153126) |  |  | (145472) |  |  |
| Cash and due from banks | 170703 |  |  | 185006 |  |  | 216625 |  |  |
| Accrued interest and other assets | 2651091 |  |  | 2524568 |  |  | 2521161 |  |  |
| &nbsp;&nbsp;&nbsp;**Total assets** | 18906942 |  |  | 17792014 |  |  | 16997223 |  |  |
| **Interest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| Deposits |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing demand | 3117845 | 57737 | 1.85% | 2945315 | 60825 | 2.07% | 2932477 | 42388 | 1.45% |
| &nbsp;&nbsp;&nbsp;Savings | 5181597 | 123495 | 2.38% | 4650554 | 130772 | 2.81% | 3932100 | 68168 | 1.73% |
| &nbsp;&nbsp;&nbsp;Time | 3271555 | 129520 | 3.96% | 3021558 | 139495 | 4.62% | 2397289 | 91454 | 3.81% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 11570997 | 310752 | 2.69% | 10617427 | 331092 | 3.12% | 9261866 | 202010 | 2.18% |
| Borrowed funds |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 551917 | 24842 | 4.50% | 712870 | 38856 | 5.45% | 1019470 | 53378 | 5.24% |
| &nbsp;&nbsp;&nbsp;Long-term debt | 343442 | 24264 | 7.06% | 341352 | 20137 | 5.90% | 340950 | 19846 | 5.82% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | 895359 | 49106 | 5.48% | 1054222 | 58993 | 5.60% | 1360420 | 73224 | 5.38% |
| &nbsp;&nbsp;&nbsp;**Total interest-bearing liabilities** | 12466356 | 359858 | 2.89% | 11671649 | 390085 | 3.34% | 10622286 | 275234 | 2.59% |
| **Noninterest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing demand deposits | 3199519 |  |  | 3145646 |  |  | 3617961 |  |  |
| &nbsp;&nbsp;&nbsp;Other liabilities | 679298 |  |  | 634663 |  |  | 627225 |  |  |
| &nbsp;&nbsp;&nbsp;**Shareholders' equity** | 2561769 |  |  | 2340056 |  |  | 2129751 |  |  |
| &nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | 18906942 |  |  | 17792014 |  |  | 16997223 |  |  |
| &nbsp;&nbsp;&nbsp;**Net interest income and interest rate spread (fully tax equivalent)** |  | 646980 | 3.31% |  | 617599 | 3.27% |  | 634126 | 3.72% |
| &nbsp;&nbsp;&nbsp;**Net interest margin (fully tax equivalent)** |  |  | 3.98% |  |  | 4.05% |  |  | 4.40% |
| Interest income and yield |  | 1001904 | 6.17% |  | 1002095 | 6.58% |  | 903004 | 6.27% |
| Interest expense and rate |  | 359858 | 2.89% |  | 390085 | 3.34% |  | 275234 | 2.59% |
| &nbsp;&nbsp;&nbsp;**Net interest income and spread** |  | 642046 | 3.28% |  | 612010 | 3.24% |  | 627770 | 3.68% |
| &nbsp;&nbsp;&nbsp;**Net interest margin** |  |  | 3.95% |  |  | 4.02% |  |  | 4.36% |
| <sup>(1)</sup> Nonaccrual loans are included in average loan balance and loan fees are included in interest income. | <sup>(1)</sup> Nonaccrual loans are included in average loan balance and loan fees are included in interest income. | <sup>(1)</sup> Nonaccrual loans are included in average loan balance and loan fees are included in interest income. | <sup>(1)</sup> Nonaccrual loans are included in average loan balance and loan fees are included in interest income. | <sup>(1)</sup> Nonaccrual loans are included in average loan balance and loan fees are included in interest income. | <sup>(1)</sup> Nonaccrual loans are included in average loan balance and loan fees are included in interest income. | <sup>(1)</sup> Nonaccrual loans are included in average loan balance and loan fees are included in interest income. |  |  |  |
| <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. | <sup>(2)</sup> Interest income on tax-exempt investments and on certain tax-exempt loans and leases has been adjusted to a tax equivalent basis using a 21% tax rate. |
| <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments | <sup>(3)</sup> Includes HTM securities, AFS securities and other investments |
| <sup>(4)</sup> Includes loans held-for-sale |  |  |  |  |  |  |  |  |  |

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**10 First Financial Bancorp** 2025 Annual Report

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Table 5 • Volume/Rate Analysis - Tax Equivalent Basis** <sup>(1)</sup>  | **Table 5 • Volume/Rate Analysis - Tax Equivalent Basis** <sup>(1)</sup>  | **Table 5 • Volume/Rate Analysis - Tax Equivalent Basis** <sup>(1)</sup>  | **Table 5 • Volume/Rate Analysis - Tax Equivalent Basis** <sup>(1)</sup>  | **Table 5 • Volume/Rate Analysis - Tax Equivalent Basis** <sup>(1)</sup>  | | |
|  | 2025 change from 2024 due to | 2025 change from 2024 due to | 2025 change from 2024 due to | 2024 change from 2023 due to | 2024 change from 2023 due to | 2024 change from 2023 due to |
| *(Dollars in thousands)* | Volume | Rate | Total | Volume | Rate | Total |
| **Interest income** |  |  |  |  |  |  |
| Loans <sup>(2)</sup> | $41173 | $(58729) | $(17556) | $63615 | $29204 | $92819 |
| Investment securities <sup>(3)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxable | 19773 | 3327 | 23100 | (4729) | 4145 | (584) |
| &nbsp;&nbsp;&nbsp;Tax-exempt | (2060) | (269) | (2329) | (3745) | (136) | (3881) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest on investment securities <sup>(3)</sup> | 17713 | 3058 | 20771 | (8474) | 4009 | (4465) |
| Interest-bearing deposits with other banks | 1335 | (5396) | (4061) | 9187 | 783 | 9970 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | 60221 | (61067) | (846) | 64328 | 33996 | 98324 |
| **Interest expense** |  |  |  |  |  |  |
| Interest-bearing demand deposits | 3195 | (6283) | (3088) | 265 | 18172 | 18437 |
| Savings deposits | 12657 | (19934) | (7277) | 20203 | 42401 | 62604 |
| Time deposits | 9897 | (19872) | (9975) | 28820 | 19221 | 48041 |
| Short-term borrowings | (7245) | (6769) | (14014) | (16712) | 2190 | (14522) |
| Long-term debt | 148 | 3979 | 4127 | 24 | 267 | 291 |
| &nbsp;&nbsp;&nbsp;**Total** | 18652 | (48879) | (30227) | 32600 | 82251 | 114851 |
| &nbsp;&nbsp;&nbsp;**Net interest income** | $41569 | $(12188) | $29381 | $31728 | $(48255) | $(16527) |

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<sup>(1)</sup> Tax equivalent basis calculated using a 21% tax rate

<sup>(2)</sup> Includes nonaccrual loans and loans held-for-sale

<sup>(3)</sup> Includes HTM securities, AFS securities and other investments

**NONINTEREST INCOME AND NONINTEREST EXPENSES**

Noninterest income and noninterest expenses for 2025, 2024 and 2023 are shown in Table 6 – Noninterest Income and Noninterest Expenses.

**NONINTEREST INCOME**

**2025 vs. 2024.** Noninterest income increased $33.9 million, or 15.1%, to $257.4 million in 2025 from $223.6 million in 2024. The increase was primarily attributed to a $12.4 million, or 18.3%, increase in leasing business income; a $9.6 million, or 17.1%, increase in foreign exchange income; a $7.0 million, or 38.9%, increase in gains from sales of loans; a $3.8 million, or 13.4%; increase in wealth management fees; a $3.1 million, or 66.0%, increase in client derivative fees; and a $2.1 million, or 7.1%, increase in service charges on deposit accounts. These increases were partially offset by a $4.2 million, or 15.3%, decrease in other noninterest income.

Continued growth from Summit resulted in higher leasing business income during 2025. Foreign exchange and client derivative fee income grew due to increased demand while wealth management fees grew as a result of an increase in business succession consulting fees. The increase in gains from sales of loans reflects an increase in the volume of mortgage loans sold during 2025 due to declining interest rates, while service charges on deposits increased from the prior year due to an increase in deposit balances. Partially offsetting these increases, other noninterest income decreased due to a $4.4 million gain recorded in 2024 related to a deferred tax adjustment.

**2024 vs. 2023.** Noninterest income increased $11.1 million, or 5.2%, to $223.6 million in 2024 from $212.4 million in 2023. The increase was primarily attributed to a $16.3 million, or 31.8%, increase in leasing business income; a $5.1 million, or 22.9%, increase in other noninterest income; a $4.7 million, or 35.6%, increase in gains from sales of loans; a $2.6 million, or 10.1%; increase in wealth management fees; a $2.0 million, or 3.7%, increase in foreign exchange income; and a $2.0 million, or 7.3%, increase in service charges on deposit accounts. These increases were partially offset by a $21.5 million increase in losses on investment securities.

The growth in leasing business income in 2024 reflected continued growth from Summit during the year. The increase in other noninterest income was primarily driven by a $4.4 million gain related to a deferred tax adjustment, while gains from sales of loans increased due to higher mortgage volumes in the back half of 2024 as the Federal Reserve cut interest rates. Wealth

**First Financial Bancorp** 2025 Annual Report **11**

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management fees grew as a result of an increase in managed assets, and foreign exchange income rose as a result of an increase in customer demand. Service charges on deposits increased in 2024 due to a corresponding increase in deposit balances compared to the prior year.

Partially offsetting these increases, losses on investment securities were higher in 2024 than in 2023 due to a $9.7 million impairment loss on two commercial mortgage backed securities where the underlying collateral consisted of skilled nursing facilities with credit deterioration and $13.2 million of losses resulting from the repositioning of a portion of the investment portfolio during 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Table 6 • Noninterest Income and Noninterest Expenses** | **Table 6 • Noninterest Income and Noninterest Expenses** | **Table 6 • Noninterest Income and Noninterest Expenses** | **Table 6 • Noninterest Income and Noninterest Expenses** | **Table 6 • Noninterest Income and Noninterest Expenses** | **Table 6 • Noninterest Income and Noninterest Expenses** | **Table 6 • Noninterest Income and Noninterest Expenses** |
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| *(Dollars in thousands)* | Total | % Change | Total | % Change | Total | % Change |
| **Noninterest income** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | $31366 | 7.1% | $29279 | 7.3% | $27289 | (2.8)% |
| &nbsp;&nbsp;&nbsp;Wealth management fees | 32563 | 13.4% | 28720 | 10.1% | 26081 | 11.0% |
| &nbsp;&nbsp;&nbsp;Bankcard income | 14226 | (1.2)% | 14399 | 2.6% | 14039 | (2.4)% |
| &nbsp;&nbsp;&nbsp;Client derivative fees | 7802 | 66.0% | 4701 | (8.8)% | 5155 | (5.3)% |
| &nbsp;&nbsp;&nbsp;Foreign exchange income | 65666 | 17.1% | 56064 | 3.7% | 54051 | (1.7)% |
| &nbsp;&nbsp;&nbsp;Leasing business income | 80020 | 18.3% | 67641 | 31.8% | 51322 | 62.5% |
| &nbsp;&nbsp;&nbsp;Net gains from sales of loans | 24885 | 38.9% | 17918 | 35.6% | 13217 | (12.2)% |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on investment securities | (22324) | (1.1)% | (22575) | N/M | (1052) | (12.9)% |
| &nbsp;&nbsp;&nbsp;Other | 23234 | (15.3)% | 27421 | 22.9% | 22320 | 24.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $257438 | 15.1% | $223568 | 5.2% | $212422 | 12.0% |
| **Noninterest expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and employee benefits | $315885 | 3.8% | $304389 | 4.0% | $292731 | 8.7% |
| &nbsp;&nbsp;&nbsp;Net occupancy | 24182 | 4.9% | 23050 | 0.3% | 22990 | 3.5% |
| &nbsp;&nbsp;&nbsp;Furniture and equipment | 14776 | 2.4% | 14427 | 6.5% | 13543 | 2.4% |
| &nbsp;&nbsp;&nbsp;Data processing | 37835 | 7.6% | 35178 | (1.9)% | 35852 | 6.5% |
| &nbsp;&nbsp;&nbsp;Marketing | 10170 | 12.7% | 9026 | (6.4)% | 9647 | 10.3% |
| &nbsp;&nbsp;&nbsp;Communication | 3013 | (6.7)% | 3229 | 18.3% | 2729 | 1.7% |
| &nbsp;&nbsp;&nbsp;Professional services | 14833 | 5.3% | 14087 | 41.9% | 9926 | 2.0% |
| &nbsp;&nbsp;&nbsp;Amortization of tax credit investments | 1135 | (92.1)% | 14396 | N/M | 1295 | (94.6)% |
| &nbsp;&nbsp;&nbsp;State intangible tax | 5604 | 122.0% | 2524 | (35.5)% | 3914 | (8.7)% |
| &nbsp;&nbsp;&nbsp;FDIC assessments | 11204 | 0.0% | 11209 | (6.2)% | 11948 | 66.1% |
| &nbsp;&nbsp;&nbsp;Intangible assets amortization | 11003 | 16.0% | 9487 | (8.8)% | 10402 | (7.0)% |
| &nbsp;&nbsp;&nbsp;Leasing business expense | 53705 | 21.2% | 44317 | 36.4% | 32500 | 59.6% |
| &nbsp;&nbsp;&nbsp;Other | 37202 | 8.5% | 34276 | 10.5% | 31012 | 7.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $540547 | 4.0% | $519595 | 8.6% | $478489 | 5.1% |

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**12 First Financial Bancorp** 2025 Annual Report

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**NONINTEREST EXPENSES**

**2025 vs. 2024.** Noninterest expenses increased $21.0 million, or 4.0%, to $540.5 million in 2025 compared to $519.6 million in 2024, primarily due to an $11.5 million, or 3.8%, increase in salaries and employee benefits; a $9.4 million, or 21.2%, increase in leasing business expenses; a $3.1 million, or 122.0%, increase in state intangible taxes; a $2.7 million, or 7.6%, increase in data processing; and a $2.9 million, or 8.5%, increase in other noninterest expenses. Partially offsetting these increases was a $13.3 million, or 92.1%, decrease in tax credit investment amortization.

Higher salaries and employee benefits were driven by the Westfield acquisition and higher incentive compensation during the year, while the increase in leasing business expense was a result of the continued growth of the operating lease portfolio. Data processing expenses increased primarily due to acquisition-related expenses while state intangible taxes increased as a result of a higher percentage of income being earned in Ohio during 2025. The increase in other noninterest expenses was a result of higher pension expense for 2025. The decline in tax credit amortization during the current year resulted from fewer tax credit investments being recognized in 2025 than in 2024.

**2024 vs. 2023.** Noninterest expenses increased $41.1 million, or 8.6%, to $519.6 million in 2024 compared to $478.5 million in 2023, primarily due to a $13.1 million increase in tax credit investment amortization; an $11.8 million, or 36.4%, increase in leasing business expenses; an $11.7 million, or 4.0%, increase in salaries and employee benefits; a $4.2 million, or 41.9%, increase in professional services; and a $3.3 million, or 10.5%, increase in other noninterest expenses. Partially offsetting these increases was a $1.4 million, or 35.5%, decrease in state intangible taxes.

Tax credit investment amortization increased during 2024 due to an increase in tax credits realized during the period, while the increase in leasing business expense was a result of continued growth from Summit Funding Group. Higher salaries and employee benefits were driven by annual compensation adjustments, incentive compensation tied to fee income, and performance related incentives tied to the Company's financial results. Professional services increased primarily due to consulting expenses tied to the Company's ongoing optimization efforts. The increase in other noninterest expenses was driven by higher pension expense in 2024. The decline in state intangible taxes during the year was primarily due to the recognition of state tax credits during 2024.

**INCOME TAXES**

**2025 vs. 2024.** First Financial's income tax expense in 2025 totaled $65.7 million compared to $39.5 million in 2024, resulting in effective tax rates of 20.4% and 14.7% for 2025 and 2024, respectively. The higher effective tax rate in 2025 was primarily related to a higher number of tax credits recognized during 2024.

**2024 vs. 2023.** First Financial's income tax expense in 2024 totaled $39.5 million compared to $62.7 million in 2023, resulting

in effective tax rates of 14.7% and 19.7% for 2024 and 2023, respectively. The lower effective tax rate in 2024 was primarily

related to tax credit activity during 2024, as well as lower gross income in 2024 compared to 2023.

For further information on income taxes, see Note 16 – Income Taxes in the Notes to Consolidated Financial Statements.

**INVESTMENTS**

First Financial utilizes its investment portfolio as a source of liquidity and interest income, as well as a tool for managing the Company's interest rate risk profile. As such, the Company's primary investment strategy is to invest in debt securities with low credit risk, such as treasury and agency-backed residential MBS. The investment portfolio is also managed with consideration to prepayment, extension and maturity risk. First Financial invests primarily in MBS issued by U.S. government agencies and corporations, such as GNMA, FHLMC and FNMA, as these securities are considered to have a low credit risk and high liquidity profile due to government agency guarantees. Government and agency backed securities comprised 53.7% and 45.5% of First Financial's investment securities portfolio as of December 31, 2025 and 2024, respectively.

The Company also invests in certain securities whose realization is dependent on future principal and interest repayments. Prior to purchase, First Financial performs a detailed collateral and structural analysis on these securities and strategically invests in asset classes in which First Financial has expertise and experience, as well as a senior position in the capital structure. First Financial continuously monitors credit risk and geographic concentration risk in its evaluation of market opportunities that would enhance the overall performance of the portfolio. Securities not supported by government or agency guarantees represented 46.3% and 54.5% of First Financial's investment securities portfolio as of December 31, 2025 and 2024, respectively.

**First Financial Bancorp** 2025 Annual Report **13**

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The other investments category in the Consolidated Balance Sheets consists primarily of First Financial's investments in FRB stock and FHLB stock.

**2025 vs. 2024.** First Financial's investment portfolio at December 31, 2025 totaled $4.0 billion, compared to $3.3 billion at December 31, 2024, and represented 19.1% of total assets at December 31, 2025. The $769.7 million, or 23.6%, increase in the investment portfolio during 2025 was primarily related to the Westfield acquisition as well as Company's strategic deployment of balance sheet liquidity resulting from an increase in deposits.

First Financial classified $4.0 billion, or 98.5%, and $3.2 billion, or 97.6%, of investment securities as AFS at December 31, 2025 and 2024, respectively. First Financial classified $58.5 million, or 1.5%, and $77.0 million, or 2.4%, of investment securities as HTM at December 31, 2025 and 2024, respectively.

First Financial recorded a $163.9 million unrealized after-tax loss on the investment portfolio at December 31, 2025 due to changes in the fair value of AFS securities resulting from higher interest rates. This unrealized after-tax loss position, which was reflected as an adjustment to equity in AOCI, improved $92.6 million in 2025 from a $256.5 million unrealized after-tax loss at December 31, 2024 due to a decrease in interest rates during the year and the Company's strategic repositioning of a portion of the portfolio.

The overall duration of the investment portfolio was 4.4 years as of both December 31, 2025 and December 31, 2024. First Financial has avoided adding to its portfolio any particular securities that would materially increase credit risk or geographic concentration risk and the Company continuously monitors and considers these risks in its evaluation of current market opportunities that would enhance the overall performance of the portfolio.

During 2025, the Company realized $22.3 million of losses on investment securities, which is included in noninterest income in Consolidated Statements of Income, compared to $22.6 million in 2024. The repositioning of a portion of the investment portfolio accounted for losses of $6.5 million and $13.2 million in 2025 and 2024, respectively, while impairment write-downs accounted for $8.1 million of losses in 2025 and $9.7 million in 2024. These impairment losses were due to credit deterioration where the Company had determined that it no longer intended to hold the securities until the recovery of their amortized cost bases.

First Financial had six AFS securities with unrealized losses due to credit deterioration at December 31, 2025. These securities totaled $20.9 million, with $9.8 million of unrealized losses. The Company had two AFS securities with unrealized losses due to credit deterioration at December 31, 2024, which totaled $11.1 million, and had unrealized losses of $1.1 million. The Company is monitoring these securities and believes that the Company will receive the full par value.

Debt securities issued by the U.S. government and U.S. government agencies and corporations, including the FHLB, FHLMC, FNMA and the U.S. Export/Import Bank, were not meaningful as a percentage of the portfolio at either December 31, 2025 or December 31, 2024.

Investments in MBS securities, which include CMO, represented 66.4% and 60.2% of First Financial's total investment portfolio at December 31, 2025 and 2024, respectively. MBS securities are participations in pools of loans secured by mortgages under which payments of principal and interest are passed through to the security holders. These securities are subject to prepayment risk, particularly during periods of declining interest rates, and extension risk during periods of rising interest rates. Prepayments of the underlying residential real estate loans may shorten the lives of the securities, thereby affecting yields to maturity and market values.

Tax-exempt securities of states, municipalities and other political subdivisions totaled $626.4 million as of December 31, 2025 and $529.5 million as of December 31, 2024, comprising 15.5% and 16.2% of the investment portfolio at December 31, 2025 and 2024, respectively. The securities are diversified to include states as well as issuing authorities within states, thereby decreasing geographic portfolio risk. First Financial continuously monitors the risk associated with this investment type and reviews underlying ratings for possible downgrades. First Financial does not own any state or other political subdivision securities that are currently impaired.

Asset-backed securities were $556.5 million, or 13.8% of the investment portfolio at December 31, 2025 and $534.1 million, or 16.4% of the investment portfolio at December 31, 2024. First Financial considers these investment securities to have lower credit risk and a high liquidity profile as a result of explicit guarantees on the collateral.

**14 First Financial Bancorp** 2025 Annual Report

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Other securities, consisting primarily of taxable securities of states, municipalities and other political subdivisions, in addition to debt securities issued by corporations, were $173.7 million, or 4.3% of the investment portfolio, at December 31, 2025 and $162.8 million, or 5.0% of the investment portfolio, at December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Table 7 • Investment Securities as of December 31** | | | | |
|  | 2025 | 2025 | 2024 | 2024 |
|  |  | Percent of |  | Percent of |
| *(Dollars in thousands)* | Amount | Portfolio | Amount | Portfolio |
| U.S. Treasuries | $95 | 0.0% | $90 | 0.0% |
| Securities of U.S. government agencies and corporations | 0 | 0.0% | 71678 | 2.2% |
| Mortgage-backed securities-residential | 1549414 | 38.4% | 998542 | 30.6% |
| Mortgage-backed securities-commercial | 408973 | 10.2% | 387816 | 11.9% |
| Collateralized mortgage obligations | 715325 | 17.8% | 576172 | 17.7% |
| Obligations of state and other political subdivisions | 626424 | 15.5% | 529525 | 16.2% |
| Asset-backed securities | 556544 | 13.8% | 534103 | 16.4% |
| Other securities | 173702 | 4.3% | 162810 | 5.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $4030477 | 100.0% | $3260736 | 100.0% |

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First Financial held $597.3 million and $730.2 million of cash on deposit with the Federal Reserve and FHLB at December 31, 2025 and 2024, respectively. The Company continually monitors its liquidity position as part of its ERM framework, specifically through its asset/liability management process.

The Company had unrealized gains on equity securities of $0.3 million recorded in noninterest income for the twelve months ended both December 31, 2025 and 2024.

First Financial will continue to monitor loan and deposit demand, balance sheet composition, capital sensitivity and the interest rate environment as it manages investment strategies in future periods. See Note 4 – Investment Securities in the Notes to Consolidated Financial Statements for additional information on the Company's investment portfolio and Note 23 – Fair Value Disclosures for additional information on how First Financial determines the fair value of investment securities.

The estimated maturities and weighted-average yields of HTM and AFS investment securities as of December 31, 2025 are shown in Table 8 – Investment Securities. Tax-equivalent adjustments using a rate of 21% were included in calculating yields on tax-exempt obligations of state and other political subdivisions.

**First Financial Bancorp** 2025 Annual Report **15**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** | **Table 8 • Investment Securities as of December 31, 2025** |
|  | Maturity <sup>(2)</sup> | Maturity <sup>(2)</sup> | Maturity <sup>(2)</sup> | Maturity <sup>(2)</sup> | Maturity <sup>(2)</sup> | Maturity <sup>(2)</sup> | Maturity <sup>(2)</sup> | Maturity <sup>(2)</sup> |
|  | Within one year | Within one year | After one but within five years | After one but within five years | After five but within ten years | After five but within ten years | After ten years | After ten years |
| *(Dollars in thousands)* | Amount | Yield<sup>(1)</sup> | Amount | Yield<sup>(1)</sup> | Amount | Yield<sup>(1)</sup> | Amount | Yield<sup>(1)</sup> |
| **Held-to-Maturity** |  |  |  |  |  |  |  |  |
| Securities of other U.S. government agencies and corporations | $0 | 0.00% | $0 | 0.00% | $0 | 0.00% | $0 | 0.00% |
| Mortgage-backed securities-residential | 0 | 0.00% | 0 | 0.00% | 0 | 0.00% | 0 | 0.00% |
| Mortgage-backed securities-commercial | 7440 | 2.94% | 7196 | 1.99% | 12737 | 2.22% | 0 | 0.00% |
| Collateralized mortgage obligations | 3329 | 2.71% | 0 | 0.00% | 2759 | 2.93% | 0 | 0.00% |
| Obligations of state and other political subdivisions | 720 | 3.02% | 6222 | 3.59% | 0 | 0.00% | 1392 | 2.25% |
| Other securities | 0 | 0.00% | 15750 | 8.04% | 1000 | 4.25% | 0 | 0.00% |
| **Total** | $11489 | 2.88% | $29168 | 5.60% | $16496 | 2.46% | $1392 | 2.25% |
| **Available-for-Sale** |  |  |  |  |  |  |  |  |
| U.S. treasuries | $0 | 0.00% | $95 | 1.39% | $0 | 0.00% | $0 | 0.00% |
| Securities of other U.S. government agencies and corporations | 0 | 0.00% | 0 | 0.00% | 0 | 0.00% | 0 | 0.00% |
| Mortgage-backed securities-residential | 160394 | 2.38% | 116988 | 5.34% | 991171 | 4.09% | 280861 | 5.03% |
| Mortgage-backed securities-commercial | 154988 | 3.95% | 56800 | 5.57% | 68944 | 3.27% | 100868 | 5.00% |
| Collateralized mortgage obligations | 127315 | 3.09% | 273571 | 4.66% | 216196 | 3.74% | 92155 | 5.11% |
| Obligations of state and other political subdivisions | 10496 | 2.89% | 109865 | 2.62% | 325183 | 2.64% | 172546 | 3.17% |
| Asset-backed securities | 71943 | 3.17% | 316918 | 5.53% | 145048 | 5.27% | 22635 | 6.41% |
| Other securities | 21720 | 6.18% | 93814 | 6.95% | 38079 | 5.36% | 3339 | 4.08% |
| **Total** | $546856 | 3.22% | $968051 | 5.02% | $1784621 | 3.85% | $672404 | 4.47% |

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<sup>(1)</sup> Tax equivalent basis was calculated using a 21% tax rate and yields were based on amortized cost.

<sup>(2)</sup> Maturity represents estimated life of investment securities

**LENDING PRACTICES**

First Financial remains dedicated to meeting the financial needs of individuals and businesses through its client-focused business model. The loan portfolio is comprised of a broad range of borrowers primarily located in the Ohio, Indiana, Kentucky and Illinois markets; however, the insurance premium finance, commercial finance and leasing lines of business serve a nationwide client base.

First Financial's loan portfolio consists of commercial loan types, including C&I, lease financing (equipment leasing), construction real estate and commercial real estate, as well as consumer loan types, such as residential real estate, home equity, installment and credit card loans. First Financial's lending portfolios are managed to avoid the creation of inappropriate industry, geographic or borrower concentration risk.

**Credit Management.** Subject to First Financial's credit policy and guidelines, credit underwriting and approval occur within the market and/or the centralized line of business originating the loan. First Financial has delegated a lending limit sufficient to address the majority of client requests in a timely manner to each market president and line of business manager. Loan requests for amounts greater than those limits require the approval of a designated credit officer or senior credit committee and may require additional approvals from the Chief Credit Officer, the Chief Executive Officer and the Board of Directors. This allows First Financial to manage the initial credit risk exposure through a standardized, strategic and disciplined approval process, but with an increasingly higher level of authority. Plans to purchase or sell a participation in a loan, or a group of loans, requires the approval of certain senior lending and administrative officers, and in some cases could include the Board of Directors.

**16 First Financial Bancorp** 2025 Annual Report

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Credit management practices are dependent on the type and nature of the loan. First Financial monitors all significant

exposures on an ongoing basis. Commercial loans are assigned internal risk ratings reflecting the risk of loss inherent in the loan. These internal risk ratings are assigned upon initial approval of credit and are updated periodically thereafter. First Financial reviews and adjusts its risk ratings based on actual experience, which is the basis for determining an appropriate ACL. First Financial's commercial risk ratings of pass, special mention, substandard and doubtful are derived from standard regulatory rating definitions and facilitate the monitoring of credit quality across the commercial loan portfolio. For further information regarding these risk ratings, see Note 5 – Loans and Leases in the Notes to the Consolidated Financial Statements.

Commercial loans rated as special mention, substandard or doubtful are considered criticized, while loans rated as substandard or doubtful are considered classified. Commercial loans may be designated as criticized and/or classified based on individual borrower performance or industry and environmental factors. Criticized and classified loans are subject to more frequent internal reviews to assess the borrower's credit status and develop appropriate action plans.

Management considers classified loans to be the leading indicator of credit losses, and these loans are typically managed by the Special Assets Department. Special Assets is a commercial credit group whose primary focus is to handle the day-to-day management of commercial workouts, recoveries and problem loan resolutions. Special Assets ensures that First Financial has appropriate oversight, improved communication and timely resolution of issues throughout the loan portfolio. Additionally, the CRM group within First Financial's Risk Management function provides independent, objective oversight and assessment of commercial credit quality and processes.

Consumer lending credit approvals are based upon the financial strength and payment history of the borrower, type of exposure and the transaction structure, among other factors. Consumer loans are generally smaller dollar amounts than other types of lending and are made to a large number of customers, providing diversification within the portfolio. Credit risk in the consumer loan portfolio is managed by loan type, and consumer loan asset quality indicators, including delinquency, are continuously monitored. The Credit Risk Management group performs product-level performance reviews and assesses credit quality and compliance with underwriting and loan administration guidelines across the consumer loan portfolio.

**LOANS AND LEASES** 

**2025 vs. 2024.** Loans, excluding loans held for sale, totaled $13.4 billion at December 31, 2025, increasing $1.7 billion, or 14.1%, compared to December 31, 2024. The increase in loan balances included $1.6 billion acquired in the Westfield transaction.

C&I loans increased $816.4 million, or 21.4%, to $4.6 billion; residential real estate loans increased $369.9 million, or 25.3%, to $1.8 billion; commercial real estate loans increased $322.8 million, or 7.9%, to $4.4 billion; finance lease balances increased $40.5 million, or 6.8%, to $638.5 million; home equity loans increased $156.2 million, or 18.4%, to $1.0 billion; installment loans increased $55.6 million, or 41.8%, to $188.7 million; and credit card balances increased $3.0 million, or 4.8%, to $65.3 million. Partially offsetting these increases, construction real estate loans decreased $102.1 million, or 13.1%, to $677.3 million.

Average loan balances, including loans held for sale, were $12.0 billion for 2025, an increase of $603.1 million, or 5.3%, compared to 2024.

Table 9 – Loan Maturity/Rate Sensitivity indicates the contractual maturity of all loans outstanding at December 31, 2025 as well as their sensitivity to changes in interest rates.

For discussion of risks associated with the loan portfolio and First Financial's ACL, see the Asset Quality and Allowance for Credit Losses section included in Management's Discussion and Analysis.

**First Financial Bancorp** 2025 Annual Report **17**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Table 9 • Loan Maturity/Rate Sensitivity** | **Table 9 • Loan Maturity/Rate Sensitivity** | **Table 9 • Loan Maturity/Rate Sensitivity** | **Table 9 • Loan Maturity/Rate Sensitivity** | **Table 9 • Loan Maturity/Rate Sensitivity** | **Table 9 • Loan Maturity/Rate Sensitivity** |
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | Maturity | Maturity | Maturity | Maturity | Maturity |
|  |  | After one | After five |  |  |
|  | Within | but within | but within | After |  |
| *(Dollars in thousands)* | one year | five years | fifteen years | fifteen years | Total |
| Commercial & industrial | $1305996 | $2605410 | $718192 | $2643 | $4632241 |
| Lease financing | 178935 | 436398 | 23194 | 0 | 638527 |
| Construction real estate | 297452 | 233322 | 52986 | 93579 | 677339 |
| Commercial real estate | 980530 | 2576349 | 793859 | 33818 | 4384556 |
| Residential real estate | 55333 | 199457 | 594334 | 983060 | 1832184 |
| Home equity | 19080 | 69704 | 105982 | 810438 | 1005204 |
| Installment | 44643 | 80657 | 53257 | 10137 | 188694 |
| Credit card | 0 | 0 | 0 | 65325 | 65325 |
| **Total** | $2881969 | $6201297 | $2341804 | $1999000 | $13424070 |
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | Maturity | Maturity | Maturity | Maturity | Maturity |
|  |  | After one | After five |  |  |
|  | Within | but within | but within | After |  |
| *(Dollars in thousands)* | one year | five years | fifteen years | fifteen years | Total |
| **Fixed rate** |  |  |  |  |  |
| &nbsp;&nbsp;Commercial & industrial | $560258 | $682512 | $175575 | $0 | $1418345 |
| &nbsp;&nbsp;Lease financing | 117243 | 269684 | 16487 | 0 | 403414 |
| &nbsp;&nbsp;Construction real estate | 17066 | 14080 | 8685 | 42974 | 82805 |
| &nbsp;&nbsp;Commercial real estate | 83038 | 476963 | 167636 | 1453 | 729090 |
| &nbsp;&nbsp;Residential real estate | 45079 | 152244 | 442776 | 667805 | 1307904 |
| &nbsp;&nbsp;Home equity | 9674 | 38983 | 70720 | 60580 | 179957 |
| &nbsp;&nbsp;Installment | 41883 | 76633 | 17969 | 10127 | 146612 |
| &nbsp;&nbsp;Credit card | 0 | 0 | 0 | 615 | 615 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $874241 | $1711099 | $899848 | $783554 | $4268742 |
| **Variable rate** |  |  |  |  |  |
| &nbsp;&nbsp;Commercial & industrial | $745738 | $1922898 | $542617 | $2643 | $3213896 |
| &nbsp;&nbsp;Lease financing | 61692 | 166714 | 6707 | 0 | 235113 |
| &nbsp;&nbsp;Construction real estate | 280386 | 219242 | 44301 | 50605 | 594534 |
| &nbsp;&nbsp;Commercial real estate | 897492 | 2099386 | 626223 | 32365 | 3655466 |
| &nbsp;&nbsp;Residential real estate | 10254 | 47213 | 151558 | 315255 | 524280 |
| &nbsp;&nbsp;Home equity | 9406 | 30721 | 35262 | 749858 | 825247 |
| &nbsp;&nbsp;Installment | 2760 | 4024 | 35288 | 10 | 42082 |
| &nbsp;&nbsp;Credit card | 0 | 0 | 0 | 64710 | 64710 |
| &nbsp;&nbsp; **Total** | $2007728 | $4490198 | $1441956 | $1215446 | $9155328 |

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**18 First Financial Bancorp** 2025 Annual Report

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In an effort to mitigate credit risk, First Financial routinely reviews its loan portfolio for various concentrations. These reviews consider the Bank's collateral position as well as exposure to a given industry sector. First Financial believes that the loan portfolio is sufficiently diversified to provide protection from deterioration in any particular industry or devaluation of a specific collateral type. Table 10 - C&I and Owner Occupied Loans by Sector and Table 11 - Investor CRE Loans by Property Type provide additional detail behind the Company's C&I and CRE loan portfolios as of December 31, 2025.

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| | | |
|:---|:---|:---|
| **Table 10 • C&I and Owner Occupied CRE Loans by Sector** <sup>(1)</sup> | **Table 10 • C&I and Owner Occupied CRE Loans by Sector** <sup>(1)</sup> | **Table 10 • C&I and Owner Occupied CRE Loans by Sector** <sup>(1)</sup> |
| *(Dollars in thousands)* | December 31, 2025 | % of Total Loans |
| **NAICS Sector** |  |  |
| &nbsp;&nbsp;Finance and Insurance | $1129947 | 8.4% |
| &nbsp;&nbsp;Manufacturing | 560680 | 4.2% |
| &nbsp;&nbsp;Construction | 400529 | 3.0% |
| &nbsp;&nbsp;Real Estate and Rental and Leasing | 366028 | 2.7% |
| &nbsp;&nbsp;Professional, Scientific, and Technical Services | 290941 | 2.2% |
| &nbsp;&nbsp;Retail Trade | 270199 | 2.0% |
| &nbsp;&nbsp;Health Care and Social Assistance | 257973 | 1.9% |
| &nbsp;&nbsp;Accommodation and Food Services | 247219 | 1.8% |
| &nbsp;&nbsp;Wholesale Trade | 213105 | 1.6% |
| &nbsp;&nbsp;Agriculture, Forestry, Fishing and Hunting | 160399 | 1.2% |
| &nbsp;&nbsp;Transportation and Warehousing | 148349 | 1.1% |
| &nbsp;&nbsp;Administrative and Support and Waste Management | 142624 | 1.1% |
| &nbsp;&nbsp;Other Services (except Public Administration) | 116026 | 0.9% |
| &nbsp;&nbsp;Arts, Entertainment, and Recreation | 75031 | 0.6% |
| &nbsp;&nbsp;Utilities | 62113 | 0.5% |
| &nbsp;&nbsp;Information | 59851 | 0.4% |
| &nbsp;&nbsp;Public Administration | 57860 | 0.4% |
| &nbsp;&nbsp;Management of Companies and Enterprises | 57177 | 0.4% |
| &nbsp;&nbsp;Other | 1194697 | 8.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $5810748 | 43.3% |

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<sup>(1)</sup> Excludes loan marks and loans in process

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| | | |
|:---|:---|:---|
| **Table 11 • Investor CRE Loans by Property Type** <sup>(1)</sup> | **Table 11 • Investor CRE Loans by Property Type** <sup>(1)</sup> | **Table 11 • Investor CRE Loans by Property Type** <sup>(1)</sup> |
| *(Dollars in thousands)* | December 31, 2025 | % of Total Loans |
| **Property Type** |  |  |
| &nbsp;&nbsp;Residential Multi Family 5+ | $902311 | 6.7% |
| &nbsp;&nbsp;Retail Property | 825569 | 6.1% |
| &nbsp;&nbsp;Industrial | 398412 | 3.0% |
| &nbsp;&nbsp;Office | 342965 | 2.6% |
| &nbsp;&nbsp;Hospital/Nursing Home | 259918 | 1.9% |
| &nbsp;&nbsp;Hotel | 103140 | 0.8% |
| &nbsp;&nbsp;Land | 96995 | 0.7% |
| &nbsp;&nbsp;Residential 1-4 Family | 73943 | 0.6% |
| &nbsp;&nbsp;Other | 227054 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $3230307 | 24.1% |

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<sup>(1)</sup> Excludes loan marks and loans in process

**First Financial Bancorp** 2025 Annual Report **19**

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Given the potential for stress related to commercial office space, First Financial performed targeted reviews of its exposure to this sector during 2025 and 2024. As of December 31, 2025, First Financial had $343.0 million of loans collateralized by non-owner occupied office space, which represents 2.6% of the total loan portfolio, compared to $405.5 million at December 31, 2024. The overall LTV of the portfolio at origination is strong, and a majority is located in suburban locations secured by Class A and Class B assets with recourse to the sponsor. As of December 31, 2025, 89.6% of the office portfolio was pass rated, and there were two relationships totaling $26.1 million on nonaccrual status.

Loans to NDFI totaled $461.1 million, or 3.4% of total loans, as of December 31, 2025. 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 December 31, 2025 included $314.2 million in loans to mortgage credit intermediaries, $118.7 million in loans to business credit intermediaries, and $28.2 million of loans to other NDFI, such as private equity funds and consumer credit intermediaries. As of December 31, 2025, all of the loans to NDFI had an internal credit rating of pass.

**COMMITMENTS AND CONTINGENCIES**

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 commitments outstanding to extend credit totaling $4.5 billion and $3.8 billion at December 31, 2025 and 2024, respectively. As of December 31, 2025, loan commitments with variable interest rates totaled $4.4 billion, while commitments with a fixed interest rate totaled $75.0 million. At December 31, 2024, commitments with variable interest rates totaled $3.7 billion, while loan commitments with a fixed interest rate totaled $69.3 million. The fixed rate loan commitments have interest rates ranging from 0% to 21% for both December 31, 2025 and 2024 and have maturities ranging from less than 1 year to 31.6 years at both December 31, 2025 and December 31, 2024.

Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party. First Financial's portfolio of letters of credit consists primarily of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services. First Financial issued letters of credit aggregating $36.6 million and $25.1 million at December 31, 2025, and 2024, respectively. Management conducts regular reviews of these instruments on an individual client basis.

First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amounts of $335.0 million and $310.7 million at December 31, 2025, and 2024, respectively.

First Financial is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy or other renovation or community revitalization projects. These investments are included in Accrued interest and other assets in the Consolidated Balance Sheets, with any unfunded commitments included in Accrued interest and other liabilities in the Consolidated Balance Sheets. As of December 31, 2025, First Financial expects to recover its remaining investments through the use of the tax credits that are generated by the investments. First Financial had unfunded commitments related to tax credit investments of $103.0 million and $79.8 million at December 31, 2025 and 2024, respectively.

In the ordinary course of business, First Financial and its subsidiaries are parties to litigation, including claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, foreclosure interests that are incidental to our regular business activities and other matters. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of December 31, 2025. Reserves are established for these various matters of litigation, when appropriate, under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel. First Financial had no reserves related to litigation matters as of December 31, 2025 or December 31, 2024.

**ASSET QUALITY AND ALLOWANCE FOR CREDIT LOSSES**

Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to a borrower's

**20 First Financial Bancorp** 2025 Annual Report

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continued failure to adhere to contractual payment terms, coupled with other pertinent factors. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed.

See Table 12 – Summary of the ACL and Selected Statistics for a summary of First Financial's nonaccrual loans and OREO, which collectively comprise nonperforming assets.

**2025 vs. 2024.** Nonaccrual loans as of December 31, 2025 were $101.8 million, or 76 bps of total loans. This represents a $35.8 million, or 54.3%, increase from $66.0 million as of December 31, 2024. Classified asset balances increased $11.4 million, or 5.1%, to $235.5 million at December 31, 2025 from $224.1 million at December 31, 2024. Total classified assets included a $37.0 million receivable from a customer, which was recorded following the mutually agreed upon termination of a foreign exchange trade and is expected to be collected in full. This receivable was $45.0 million at December 31, 2024.

The change in classified assets during 2025 included $20.4 million of loans rated substandard or worse acquired in the Westfield transaction. Absent the impact from Westfield, classified assets declined $9.0 million during 2025 as resolutions of classified assets outpaced downward credit migration during the period.

**Allowance for credit losses.** The ACL is a reserve accumulated on the Consolidated Balance Sheets through the recognition of the provision for loan and lease losses. First Financial records provision expense in the Consolidated Statements of Income to maintain the ACL at a level considered sufficient to absorb expected credit losses for financial assets in the portfolio over their expected remaining lives with consideration given to current and forward-looking information.

The removal or reduction of the recorded values of loans and leases from the Consolidated Balance Sheets due to credit deterioration are referred to as charge-offs. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or from the liquidation of collateral. All loans charged-off are subject to continuous review and concerted efforts are made to maximize any recovery. In most cases, the borrower's debt obligation is not canceled even though the balance may have been charged-off. Actual losses on loans and leases are charged against the ACL. Any subsequent recovery of a previously charged-off loan is credited back to the ACL.

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered therein. These adjustments are commonly known as the Qualitative Framework. The evaluation of these factors is the responsibility of the ACL Committee, which is comprised of senior officers from the risk management, credit administration, finance and lending areas.

As detailed in Note 2 – Accounting Standards Recently Adopted or Issued, the Company adopted ASU 2025-08 in 2025. The new rule allowed the Company to apply the gross-up approach in ASC 326 to all purchased seasoned loans, not just loans classified as PCD. The gross-up approach requires an entity to record an ACL at the acquisition date, offset by an addition to the amortized cost basis of the asset. Prior to the issuance of this ASU, the ACL for non-PCD assets was separately recorded through provision expense at the acquisition date.

See Table 12 – Summary of the ACL and Selected Statistics for a summary of activity impacting the ACL and Table 13 – Allocation of the ACL for detail on its composition.

**2025 vs. 2024.** The total ACL, which includes both funded and unfunded reserves, was $206.7 million at December 31, 2025, and included $25.9 million related to the Westfield acquisition in accordance with the Company's early adoption of ASU 2025-08. Net charge-offs were 25 bps of total loans, and the Company recorded $37.7 million in total provision expense for 2025. This compared to a total allowance of $173.7 million as of December 31, 2024 and $47.7 million of provision expense in 2024.

The Company utilized the Moody's December baseline forecast as its R&S forecast in the quantitative model at December 31, 2025. For reasonableness, the Company also considered the impact to the model from alternative, more adverse economic forecasts and alternative prepayment speeds. These alternative analyses were utilized to inform the Company's qualitative adjustments. Additionally, First Financial considered its credit exposure to certain industries believed to be at risk for future credit stress, such as franchise, hotel, office and investor commercial real estate lending, when making qualitative adjustments to the ACL model.

**First Financial Bancorp** 2025 Annual Report **21**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

**ACL - Loans and Leases**. The ACL on loans and leases at December 31, 2025 was $186.5 million, which was a $29.7 million, or 18.9%, increase from $156.8 million at December 31, 2024. The ACL was 1.39% as a percentage of total loans as of December 31, 2025 and 1.33% at December 31, 2024. Provision expense on loans and leases decreased $12.7 million, or 25.8%, to $36.5 million in 2025 from $49.2 million in 2024. The increase in the ACL in 2025 was primarily driven by the $23.7 million recorded in conjunction with the Westfield acquisition and organic loan growth.

Net charge-offs decreased $3.4 million, or 10.0%, to $30.5 million for 2025 compared to $33.9 million for 2024, while the ratio of net charge-offs as a percentage of average loans outstanding decreased to 25 bps in 2025 from 30 bps in 2024.

The ACL as a percentage of nonaccrual loans was 183.2% at December 31, 2025 and 237.7% at December 31, 2024. The increase in this ratio was attributed to the increase the ACL during the period outpacing the increase in nonaccrual loans.

Provision expense is a product of the Company's ACL model combined with net charge-off activity during the period. Provision expense decreased $12.7 million during 2025 as the Company recorded $36.5 million of provision expense during the period compared to $49.2 million in 2024.

**ACL - Unfunded Commitments**. The ACL on unfunded commitments was $20.2 million as of December 31, 2025 and $16.9 million as of December 31, 2024. The ACL on unfunded commitments included $2.2 million related to the Westfield acquisition. First Financial recorded $1.1 million of provision expense on unfunded commitments for the year ended December 31, 2025 compared to $1.6 million of provision recapture for the same period of 2024.

For further discussion of First Financial's ACL, see Note 6 – Allowance for Credit Losses in the Notes to Consolidated Financial Statements.

**22 First Financial Bancorp** 2025 Annual Report

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| | | | |
|:---|:---|:---|:---|
| **Table 12 • Summary of the ACL and Selected Statistics** | **Table 12 • Summary of the ACL and Selected Statistics** | **Table 12 • Summary of the ACL and Selected Statistics** | **Table 12 • Summary of the ACL and Selected Statistics** |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Allowance for credit loss activity: |  |  |  |
| Balance at January 1 | $156791 | $141433 | $132977 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase accounting ACL | 23652 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 36525 | 49211 | 43074 |
| Loans charged-off: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial & industrial | 21975 | 14648 | 19175 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease financing | 3276 | 3392 | 4423 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction real estate | 245 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 3538 | 10633 | 8723 |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate-residential | 167 | 143 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity | 373 | 447 | 340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Installment | 4832 | 7460 | 6442 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit card | 2269 | 2586 | 1173 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans charged-off | 36675 | 39309 | 40315 |
| Recoveries of loans previously charged-off: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial & industrial | 951 | 2611 | 1534 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease financing | 532 | 88 | 55 |
| &nbsp;&nbsp;&nbsp;Construction real estate | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 1237 | 219 | 2523 |
| &nbsp;&nbsp;&nbsp;Real estate-residential | 137 | 106 | 247 |
| &nbsp;&nbsp;&nbsp;Home equity | 429 | 660 | 615 |
| &nbsp;&nbsp;&nbsp;Installment | 2570 | 1284 | 441 |
| &nbsp;&nbsp;&nbsp;Credit card | 338 | 488 | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total recoveries | 6194 | 5456 | 5697 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net charge-offs | 30481 | 33853 | 34618 |
| **&nbsp;&nbsp;&nbsp;&nbsp; Balance at December 31** | $186487 | $156791 | $141433 |
| **Net charge-offs to average loans and leases** |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial & industrial | 0.53% | 0.33% | 0.51% |
| &nbsp;&nbsp;&nbsp;Lease financing | 0.46% | 0.62% | 1.28% |
| &nbsp;&nbsp;&nbsp;Construction real estate | 0.03% | 0.00% | 0.00% |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 0.06% | 0.25% | 0.15% |
| &nbsp;&nbsp;&nbsp;Real estate-residential | 0.00% | 0.00% | (0.02)% |
| &nbsp;&nbsp;&nbsp;Home equity | (0.01)% | (0.03)% | (0.04)% |
| &nbsp;&nbsp;&nbsp;Installment | 1.73% | 4.19% | 3.42% |
| &nbsp;&nbsp;&nbsp;Credit card | 2.85% | 3.18% | 1.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total net charge-offs** | 0.25% | 0.30% | 0.33% |
| **Nonperforming assets** |  |  |  |
| Nonaccrual loans | $101808 | $65973 | $65753 |
| Other real estate owned (OREO) | 184 | 64 | 106 |
| &nbsp;&nbsp;**Total nonperforming assets** | 101992 | 66037 | 65859 |
| Accruing loans past due 90 days or more | 411 | 361 | 2028 |
| &nbsp;&nbsp;**Total underperforming assets** | $102403 | $66398 | $67887 |
| Total classified assets | $235451 | $224084 | $140995 |
| **Credit quality ratios:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;As a percent of year-end loans, net of unearned income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | 1.39% | 1.33% | 1.29% |
| &nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual loans | 0.76% | 0.56% | 0.60% |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses to nonaccrual loans | 183.18% | 237.66% | 215.10% |
| &nbsp;&nbsp;Classified assets to total assets | 1.11% | 1.21% | 0.80% |

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**First Financial Bancorp** 2025 Annual Report **23**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Table 13 • Allocation of the ACL** | **Table 13 • Allocation of the ACL** | **Table 13 • Allocation of the ACL** | **Table 13 • Allocation of the ACL** | **Table 13 • Allocation of the ACL** | **Table 13 • Allocation of the ACL** | **Table 13 • Allocation of the ACL** |
|  | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, |
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| *(Dollars in thousands)* | Allowance | Percent of Loans to Total Loans | Allowance | Percent of Loans to Total Loans | Allowance | Percent of Loans to Total Loans |
| Balance at End of Period Applicable to: |  |  |  |  |  |  |
| Commercial and industrial | $75155 | 34.5% | $49987 | 32.5% | $44319 | 32.0% |
| Lease financing | 15162 | 4.8% | 13079 | 5.1% | 12365 | 4.4% |
| Real estate – construction | 16951 | 5.0% | 19216 | 6.6% | 11003 | 5.2% |
| Real estate – commercial | 38389 | 32.7% | 35721 | 34.5% | 34903 | 37.3% |
| Real estate – residential | 18084 | 13.6% | 17822 | 12.4% | 18088 | 12.2% |
| Installment, home equity & credit card | 22746 | 9.4% | 20966 | 8.9% | 20755 | 8.9% |
| **Total** | $186487 | 100.0% | $156791 | 100.0% | $141433 | 100.0% |

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**DERIVATIVES**

First Financial is authorized to use certain derivative instruments including interest rate caps, floors, swaps, commodity and foreign exchange contracts to meet the needs of its clients while managing interest rate risk associated with certain transactions. The Company does not use derivatives for speculative purposes.

First Financial primarily utilizes interest rate swaps, which generally involve the receipt by First Financial of floating rate amounts from swap counterparties in exchange for payments to these counterparties by First Financial of fixed rate amounts received from borrowers. This results in the Company's loan customers receiving fixed rate funding while providing First Financial with a floating rate asset.

In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial assumes a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will make payments to the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract with the counterparty.

First Financial enters into foreign exchange derivative contracts for the benefit of commercial customers to hedge their exposure to foreign currency fluctuations. Similar to the hedging of interest rate risk from interest rate derivative contracts, First Financial also enters into foreign exchange contracts with major financial institutions to economically hedge the exposure from client driven foreign exchange activity. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken in providing this service to customers.

First Financial also enters into non-deliverable, commodity future and forward derivative contracts for the benefit of commercial customers to hedge their exposure to price fluctuations. Similar to the hedging of interest rate risk from the interest rate derivative contracts, First Financial also enters into commodity contracts with major financial counterparties to economically hedge the exposure from the client driven activity. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken in providing this service to customers.

First Financial executes IRLCs and forward commitments for the future delivery of mortgage loans to third-party investors, which are considered derivatives. When borrowers secure an IRLC with First Financial and the loan is intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale.

First Financial enters into interest rate collars and floors, which are designated as cash flow hedges. These cash flow hedges are utilized to mitigate interest rate risk on variable-rate commercial loan pools. Changes in the fair value of cash flow hedges included in the assessment of hedge effectiveness are recorded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings.

The structure of the interest rate collars is such that First Financial pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, First Financial receives an incremental amount if the index is below the floor rate. No

**24 First Financial Bancorp** 2025 Annual Report

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payments are required if the collar index is between the cap and floor rates.

The structure of First Financial's interest rate floors is such that First Financial receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate.

The notional value of the Company's cash flow hedges was $1.0 billion at both December 31, 2025 and December 31, 2024, with a $0.1 million gain recorded in AOCI in the Consolidated Balance Sheet at December 31, 2025 and $1.2 million loss at December 31, 2024. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 36 months as of December 31, 2025.

See Note 13 – Derivatives in the Notes to Consolidated Financial Statements for additional information regarding First Financial's use of derivative instruments.

**DEPOSITS**

First Financial solicits deposits by offering commercial and consumer clients a wide variety of transaction and savings accounts, including checking, savings, money-market and time deposits of various maturities and rates.

**2025 vs. 2024.** First Financial's total deposits increased $2.1 billion, or 14.6%, to $16.4 billion as of December 31, 2025 from $14.3 billion at December 31, 2024. This change was driven by a $1.0 billion, or 20.7%, increase in savings deposits, a $470.0 million, or 14.9%, increase in time deposits, a $333.1 million, or 10.6%, increase in noninterest bearing deposits, and a $264.9 million, or 8.6%, increase in interest-bearing checking deposits. Total non-time deposit balances were $12.8 billion as of December 31, 2025 and $11.2 billion as of December 31, 2024. The increase in total deposits was largely driven by $1.8 billion of deposits acquired in the Westfield transaction.

Total average deposits for 2025 increased $1.0 billion, or 7.3%, from 2024. This increase included the two month impact from the Westfield acquisition in addition to steady average balance growth over the course of the year. Average savings deposits increased $531.0 million, or 11.4%; average time deposits increased $250.0 million, or 8.3%; average interest-bearing checking deposits increased $172.5 million, or 5.9%; and average noninterest bearing deposits increased by $53.9 million, or 1.7%.

Uninsured deposit balances were $7.4 billion, or 45.3% of total deposits, as of December 31, 2025. The Company reviews

uninsured deposits for concentration risk, and typically evaluates this risk by excluding public funds and intercompany deposits

to arrive at an adjusted uninsured deposit amount. As such, excluding public funds and intercompany accounts, adjusted

uninsured deposits were $4.9 billion, or 29.8% of total deposits, at December 31, 2025.

Table 14 – Uninsured Deposits-Maturities of Time Deposits Greater Than or Equal to $250,000 details the contractual maturity of certain deposits that are not FDIC insured. Time Deposits Greater Than or Equal to $250,000 represented 3.0% and 3.9% of total deposits outstanding at December 31, 2025 and December 31, 2024, respectively.

**First Financial Bancorp** 2025 Annual Report **25**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

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| | | | |
|:---|:---|:---|:---|
| **Table 14 • Uninsured Deposits-Maturities of Time Deposits Greater than or Equal to $250,000** | **Table 14 • Uninsured Deposits-Maturities of Time Deposits Greater than or Equal to $250,000** | **Table 14 • Uninsured Deposits-Maturities of Time Deposits Greater than or Equal to $250,000** | **Table 14 • Uninsured Deposits-Maturities of Time Deposits Greater than or Equal to $250,000** |
| *(Dollars in thousands)* | CDs | IRAs | Total |
| **December 31, 2025** |  |  |  |
| &nbsp;&nbsp;Maturing in |  |  |  |
| &nbsp;&nbsp; 3 months or less | $203188 | $5503 | $208691 |
| &nbsp;&nbsp; 3 months to 6 months | 205571 | 6624 | 212195 |
| &nbsp;&nbsp; 6 months to 12 months | 70843 | 1380 | 72223 |
| &nbsp;&nbsp; over 12 months | 1065 | 596 | 1661 |
| &nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp; Total** | $480667 | $14103 | $494770 |
| **December 31, 2024** |  |  |  |
| &nbsp;&nbsp;Maturing in |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 months or less | $168863 | $5958 | $174821 |
| &nbsp;&nbsp;&nbsp;&nbsp;3 months to 6 months | 220078 | 3084 | 223162 |
| &nbsp;&nbsp;&nbsp;&nbsp;6 months to 12 months | 122570 | 1078 | 123648 |
| &nbsp;&nbsp;&nbsp;&nbsp;over 12 months | 31735 | 643 | 32378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $543246 | $10763 | $554009 |

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**BORROWINGS**

First Financial's short-term borrowings are utilized to manage the Company's normal liquidity needs. These borrowings include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, as well as overnight advances from the FHLB. The Company's long-term borrowings consist of subordinated debt, FRB borrowings, FHLB long-term advances and repurchase agreements utilizing investment securities pledged as collateral.

**2025 vs. 2024.** Borrowed funds were $1.2 billion as of December 31, 2025 compared to $1.1 billion as of December 31, 2024. Borrowings increased during the period largely as a result of the increase in loan demand.

Short-term borrowings decreased $80.1 million, or 10.6%, to $675.3 million at December 31, 2025, from $755.5 million at December 31, 2024. First Financial had $675.0 million of short-term borrowings from the FHLB at December 31, 2025 compared to $625.0 million at December 31, 2024. Short-term borrowings included no repurchase agreements as of December 31, 2025 or 2024. Additionally, the Company had no federal funds purchased as of December 31, 2025 or 2024.

Total long-term debt was $514.1 million and $347.5 million at December 31, 2025 and 2024, respectively. Outstanding subordinated debt totaled $495.1 million and $314.6 million as of December 31, 2025 and 2024, respectively, and included unamortized valuation and debt issuance costs of $9.6 million and $6.1 million as of December 31, 2025 and 2024, respectively.

First Financial issued $300.0 million of fixed to floating rate subordinated notes in November, 2025. These subordinated notes have an initial fixed interest rate of 6.375% to, but excluding, December 1, 2030, payable semi-annually in arrears. From, and including, December 1, 2030, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term SOFR, plus 300 basis points, payable quarterly in arrears. These subordinated notes mature on December 1, 2035 and are redeemable by the Company in whole or in part beginning with the interest payment date of December 1, 2030.

Additionally, $120.0 million of the Company's subordinated notes matured and were redeemed in 2025, and therefore are not included in the Consolidated Balance Sheet as of December 31, 2025.

Subordinated debt is treated as Tier 1 or Tier 2 capital for regulatory capital purposes until it is within five years of maturity, at which time its eligibility is reduced by 20% each year.

First Financial utilizes both short-term borrowings and long-term advances from the FHLB as wholesale funding sources. The Company had no FHLB long-term advances as of December 31, 2025 or 2024. First Financial's total remaining borrowing capacity from the FHLB was $999.4 million at December 31, 2025. For ease of borrowing execution, First Financial utilizes a

**26 First Financial Bancorp** 2025 Annual Report

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blanket collateral agreement with the FHLB. First Financial pledged $6.9 billion of certain eligible residential, commercial and agricultural real estate loans, home equity lines of credit and certain agency CMO, municipals and CMBS securities as collateral for borrowings from the FHLB as of December 31, 2025.

See Note 12 – Borrowings in the Notes to Consolidated Financial Statements for additional information on First Financial's borrowings and regulatory capital treatment of subordinated debt.

**LIQUIDITY**

Liquidity management is the process by which First Financial manages the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost. These funding commitments include withdrawals by depositors, credit commitments to borrowers, shareholder dividends, share repurchases, operating expenses and capital expenditures. Liquidity is derived primarily from deposit growth, principal and interest payments on loans and investment securities, maturing loans and investment securities and access to wholesale funding sources.

First Financial's most stable source of liability-funded liquidity for both long and short-term needs is deposit growth and retention of the core deposit base. In addition to core deposit funding, First Financial also utilizes a variety of other short and long-term funding sources, which include subordinated notes, longer-term advances from the FRB and FHLB and its short-term line of credit. For further information regarding the Company's liability-funded liquidity, see Note 11 - Deposits and Note 12 - Borrowings.

Both First Financial Bancorp and First Financial Bank received investment grade credit ratings from Kroll Bond Rating Agency, Inc., an independent rating agency. These credit ratings impact the cost and availability of financing to First Financial. A downgrade to these credit ratings could affect First Financial's or the Bank's abilities to access the credit markets and could potentially increase borrowing costs, negatively impacting financial condition and liquidity. Key factors in maintaining high credit ratings include consistent and diverse earnings, strong credit quality and capital ratios, diverse funding sources and disciplined liquidity monitoring procedures. The ratings of First Financial Bancorp and First Financial Bank at December 31, 2025 were as follows:

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| | | |
|:---|:---|:---|
| **Table 15 • Credit Ratings** | **Table 15 • Credit Ratings** | **Table 15 • Credit Ratings** |
|  | First Financial Bancorp | First Financial Bank |
| Senior Unsecured Debt | BBB+ | A- |
| Subordinated Debt | BBB | BBB+ |
| Short-Term Debt | K2 | K2 |
| Deposit | N/A | A- |
| Short-Term Deposit | N/A | K2 |

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First Financial's principal source of asset-funded liquidity is marketable investment securities, particularly those of shorter maturities. AFS securities were 98.5% and 97.6% of the total investment portfolio as of December 31, 2025 and 2024, respectively. The market value of investment securities classified as AFS totaled $4.0 billion and $3.2 billion at December 31, 2025 and 2024, respectively. As of December 31, 2025, $1.2 billion of AFS securities were unpledged and there were $2.8 billion of securities available to be sold at breakeven. Additionally, $393.4 million of AFS securities have floating rates and could be sold with minimal losses at December 31, 2025.

HTM securities that are maturing within a short period of time can be an additional source of liquidity. As of December 31, 2025, the Company had $0.7 million of HTM securities maturing within one year. As of December 31, 2024, the Company had no HTM securities maturing within one year.

In total, First Financial expects $751.6 million of cash flows from its investment portfolio in the next 12 months.

Other sources of liquidity include interest-bearing deposits with other banks. At December 31, 2025, these balances totaled $597.3 million. Additionally, First Financial had unused and available overnight wholesale funding sources of $5.7 billion, or 26.8% of total assets, to satisfy the liquidity needs of the Company.

First Financial has a $40.0 million short-term credit facility with an unaffiliated bank that matures in December 2026. This facility has a variable interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of both

**First Financial Bancorp** 2025 Annual Report **27**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

December 31, 2025 and 2024, First Financial had no outstanding balance. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of December 31, 2025 and 2024. This credit facility also required First Financial to pledge as collateral the Bank's common stock where the lender is granted a security interest in this collateral.

Certain restrictions exist regarding the Bank's ability to transfer funds to First Financial in the form of cash dividends, loans, other assets or advances and the approval of the Bank's primary federal regulator is required to pay dividends in excess of regulatory limitations. Dividends paid to First Financial from the Bank totaled $280.0 million, $200.0 million and $160.0 million for 2025, 2024 and 2023, respectively. As of December 31, 2025, the Bank had retained earnings of $993.9 million, of which $193.6 million was available for distribution to First Financial without prior regulatory approval. As an additional source of liquidity, First Financial had $330.9 million in cash at the parent company as of December 31, 2025.

Share repurchases may also impact First Financial's liquidity. For further information regarding share repurchases, see the Capital section that follows.

Capital expenditures were $20.8 million for 2025, $21.1 million for 2024 and $24.1 million for 2023. Material commitments for capital expenditures as of December 31, 2025 were $41.6 million. Management believes that sufficient liquidity exists to fund its future capital expenditure commitments.

Management is not aware of any other trends, events or regulatory requirements that, if implemented, are likely to have a material effect on First Financial's liquidity. For a discussion of liquidity risk management, please see the Market Risk section that follows.

**CAPITAL**

**Risk-Based Capital.** First Financial and its subsidiary, First Financial Bank, are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated under regulatory guidelines. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate regulatory action.

The Board of Governors of the Federal Reserve System approved Basel III in order to strengthen the regulatory capital framework for all banking organizations. Basel III established and defined quantitative measures to ensure capital adequacy. These measures require First Financial to maintain minimum amounts and ratios of Common equity Tier 1 capital, Total and Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets (Leverage ratio).

The Basel III Final Capital Rules include a minimum ratio of Common equity Tier 1 capital to risk-weighted assets of 7.0%, a minimum ratio of Tier 1 capital to risk-weighted assets of 8.5%, a minimum required Total risk-based capital ratio of 10.5% and a minimum leverage ratio of 4.0%. Failure to maintain the required Common equity Tier 1 capital will result in potential restrictions on a bank's ability to pay dividends, repurchase stock and pay discretionary compensation to its employees. The capital requirements also provide strict eligibility criteria for regulatory capital instruments and change the method for calculating risk-weighted assets in an effort to better identify riskier assets, such as highly volatile commercial real estate and nonaccrual loans.

First Financial's Tier 1 capital decreased to 11.60% at December 31, 2025 compared to 12.48% at December 31, 2024, while the total capital ratio increased to 15.46% from 14.64% during the same period. The leverage ratio decreased to 9.53% at December 31, 2025, compared to 9.98% at December 31, 2024. The Company's tangible common equity ratio increased to 7.79% at December 31, 2025 from 7.73% at December 31, 2024. The changes in the Company's capital ratios were primarily a result of strong earnings muting the impact from the Westfield acquisition.

As of December 31, 2025, First Financial met all capital adequacy requirements to which it was subject. At December 31, 2025 and 2024, regulatory notifications categorized First Financial Bank as well-capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events that management believes has changed the Company's capital categorization.

For further detail on First Financial's capital ratios at December 31, 2025, see Note 20 – Capital in the Notes to Consolidated Financial Statements.

**28 First Financial Bancorp** 2025 Annual Report

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| | | |
|:---|:---|:---|
| **Table 16 • Capital Adequacy** | **Table 16 • Capital Adequacy** | |
|  | December 31, | December 31, |
| *(Dollars in thousands)* | 2025 | 2024 |
| **Consolidated capital calculations** | **Consolidated capital calculations** |  |
| Common stock | $1647618 | $1642055 |
| Retained earnings | 1437286 | 1276329 |
| Accumulated other comprehensive loss | (189942) | (289799) |
| Treasury stock, at cost | (125746) | (190544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | 2769216 | 2438041 |
| Common equity tier 1 capital adjustments |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill and other intangibles | (1218356) | (1086947) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total tangible equity** | $1550860 | $1351094 |
| Total assets | $21129379 | $18570261 |
| Goodwill and other intangibles | (1218356) | (1086947) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total tangible assets** | $19911023 | $17483314 |
| **Common tier 1 capital** | $1798266 | $1709422 |
| **Tier 1 capital** | 1843672 | 1754584 |
| **Total capital** | 2457377 | 2057877 |
| **Total risk-weighted assets** | 15890363 | 14059215 |
| **Average assets** <sup>(1)</sup> | 19351134 | 17574235 |
| **Regulatory capital** |  |  |
| Common tier 1 ratio | 11.32% | 12.16% |
| Tier 1 ratio | 11.60% | 12.48% |
| Total capital ratio | 15.46% | 14.64% |
| Leverage ratio | 9.53% | 9.98% |
| **Other capital ratios** |  |  |
| Total shareholders' equity to ending assets | 13.11% | 13.13% |
| Total tangible shareholders' equity to ending tangible assets | 7.79% | 7.73% |
| Total tangible shareholders' equity to risk-weighted assets | 9.76% | 9.61% |
| <sup>(1)</sup> For purposes of calculating the Leverage ratio, certain intangible assets are excluded from average assets. | <sup>(1)</sup> For purposes of calculating the Leverage ratio, certain intangible assets are excluded from average assets. | <sup>(1)</sup> For purposes of calculating the Leverage ratio, certain intangible assets are excluded from average assets. |

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First Financial generally seeks to balance the return of earnings to shareholders through shareholder dividends and share repurchases with capital retention in order to maintain adequate levels of capital and support the Company's growth plans.

**Shareholder Dividends.** First Financial's dividend payout ratio, or total dividends paid divided by net income available to common shareholders, was 36.6%, 38.8% and 33.8% for the years 2025, 2024 and 2023, respectively. In the third quarter of 2025, the Board of Directors authorized a $0.01 dividend increase, raising the Company's shareholder dividend from $0.24 to $0.25. The dividend payout ratio is continually reviewed by management and the Board of Directors for consistency with First Financial's overall capital planning activities and compliance with applicable regulatory limitations.

In January 2026, the Board of Directors authorized a dividend of $0.25 per common share, payable on March 16, 2026 to all shareholders of record as of March 2, 2026.

**Share Repurchases.** Effective January 2024, First Financial's Board of Directors approved a stock repurchase plan (the 2024 Repurchase Plan), replacing the 2022 Repurchase Plan which expired in December of 2023. The 2024 Repurchase Plan was in

**First Financial Bancorp** 2025 Annual Report **29**

------

**Management's Discussion and Analysis of Financial Condition and Results of Operations**

effect for two years and authorized the purchase of up to 5,000,000 shares of the Company's common stock. The 2024 Repurchase Plan expired in December 2025. First Financial did not repurchase any shares 2025, 2024 or 2023.

**Shareholders' Equity.** Total shareholders' equity at December 31, 2025 and December 31, 2024 was $2.8 billion and $2.4 billion, respectively. The increase in total equity compared to the prior year was primarily due to an increase in retained earnings during the year, which was the result of the Company's strong earnings.

For further detail, see the Consolidated Statements of Changes in Shareholders' Equity.

**PENSION PLAN**

First Financial sponsors a non-contributory defined-benefit pension plan covering substantially all employees. The significant assumptions used in the valuation and accounting for the pension plan include the discount rate, expected return on plan assets and the rate of employee compensation increase. The discount rate was 5.48% and 5.69% as of December 31, 2025 and 2024, respectively. The discount rate assumption was determined based on highly rated corporate bonds, weighted to adjust for their relative size, projected plan cash flows using the annuity substitution method as well as comparisons to external industry surveys. The expected return on plan assets was 7.25% for both 2025 and 2024, and was based on the composition of plan assets, actual returns, economic forecasts and economic trends. The assumed rate of compensation increase was 3.50% and was compared to historical increases for plan participants for reasonableness.

Presented below is the estimated impact on First Financial's projected benefit obligation and pension expense as of December 31, 2025, assuming shifts in the significant assumptions:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Table 17 • Rate Change Impact on Pension Parameters** | **Table 17 • Rate Change Impact on Pension Parameters** | **Table 17 • Rate Change Impact on Pension Parameters** | **Table 17 • Rate Change Impact on Pension Parameters** | **Table 17 • Rate Change Impact on Pension Parameters** | | |
|  | Discount rate | Discount rate | Expected return on<br>plan assets | Expected return on<br>plan assets | Rate of compensation increase | Rate of compensation increase |
| *(Dollars in thousands)* | -100 BP | +100 BP | -100 BP | +100 BP | -100 BP | +100 BP |
| Change in Projected Benefit Obligation | $2681 | $(2170) | N/A | N/A | $(154) | $300 |
| Change in Pension Expense | (685) | 705 | $1399 | $(1399) | (46) | 63 |

---

Based upon the plan's current funding status and updated actuarial projections, First Financial recorded expense related to its pension plan of $8.8 million for 2025, $6.1 million for 2024 and $3.5 million for 2023. First Financial will make contributions to the plan if plan assets do not meet or exceed ERISA's minimum funding standards. Given the plan's over-funded status, First Financial made no cash contributions to fund the pension plan in 2025, 2024 or 2023 nor does it expect to make a cash contribution in 2026.

See Note 17 – Employee Benefit Plans in the Notes to Consolidated Financial Statements for additional information on First Financial's pension plan.

**30 First Financial Bancorp** 2025 Annual Report

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**ENTERPRISE RISK MANAGEMENT** 

First Financial considers risk to be any issue that could have an adverse impact on the Company's capital or earnings, or negatively impact the Company's ability to meet its objectives. Consistent with the Company's formal ERM Program and Policy, risk is defined in alignment with COSO's ERM Framework and regulatory expectations.

First Financial manages risks through a structured ERM approach that routinely assesses the overall level of risk, identifies specific risks and evaluates the steps being taken to mitigate those risks. The ERM program is reviewed at least annually, or more frequently if warranted by mergers, new products, regulatory changes, or significant events. First Financial continues to enhance its risk management capabilities and has, over time, embedded risk awareness into the Company's culture.

ERM allows First Financial to align a variety of risk management activities within the Company into a cohesive, enterprise-wide approach and focus on process-level risk management activities and strategic objectives within the risk management culture. Additionally, ERM facilitates the Company's deliberate development of risk responses and evaluation of the effectiveness of mitigation compared to established thresholds for risk appetite and tolerance. ERM also considers significant organizational changes and consolidates information through a common process for management and the Board of Directors. Mitigation actions and recommendations are tracked via dashboards and issue logs are reviewed quarterly by management and the Board, per policy.

Anchored in proactive identification, assessment and mitigation of risks across all business units, the holistic nature of First Financial's ERM program supports a dynamic partnership between the Board of Directors and management. Through ongoing dialogue, shared governance and regular review of risk disciplines, the ERM framework not only ensures organizational resilience and strategic alignment, but also drives continuous improvement and sustained regulatory compliance. This collaborative approach empowers both leadership and operating teams to anticipate emerging threats, respond with agility and steward the Company's values, ensuring confidence among stakeholders and ongoing protection of the Company's capital, earnings and reputation.

First Financial has identified eleven types of risk that it monitors in its ERM framework. These risks include financial, credit, liquidity, capital, market (including interest rate and capital markets), regulatory compliance and legal, strategic, reputation, operational, information technology and cybersecurity. Definitions and boundaries for each risk type are reviewed annually and documented in ERM Policy and Risk Program Exhibits.

First Financial uses a robust regulatory risk framework as one of the foundational components of its ERM framework. This allows for a common categorization across the Company and provides a consistent and complete risk framework that can be summarized and assessed enterprise-wide. The risk categorization mirrors the regulatory frameworks applicable to First Financial, facilitating granular oversight and reporting across business lines and functional units. Additionally, the risk framework utilized is consistent with that used by the Company's regulators, which results in additional feedback on First Financial's ability to assess and measure risk across the organization as well as the ability for management and the Board of Directors to identify and understand differences in assessed risk profiles. ERM helps ensure that First Financial continues to identify and adequately address risks that emerge from a combination of new customers, products and associates, changing markets, new lines of business and processes and new or evolving systems.

The goals of First Financial's ERM framework are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• focus on the Company at both the enterprise and line of business levels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• align the Company's risk appetite with its strategic, operational, compliance and reporting objectives

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhance risk response decisions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduce operational deficiencies and possible losses through continuous improvement and scorecard review

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify and manage interrelated risks, including aggregated and emerging risks, as identified in quarterly and ad hoc review

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide integrated responses to multiple risks

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• improve the deployment and allocation of capital

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• improve overall business performance

Specific enterprise-level objectives include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating a holistic view of risk in which risk is comprehensively considered, consistently communicated and documented in decision making

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• centralizing the oversight of risk management activities

**First Financial Bancorp** 2025 Annual Report **31**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• defining the risks that will be addressed by the enterprise and each functional area or business unit to create an awareness of risks affecting the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and maintaining systems and mechanisms to identify, assess, monitor and measure risks that may impact First Financial's ability to achieve its business objectives--regular KRI and KPI are reported to the Board

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating a process which ensures that, for all new lines of business and new product decisions, management evaluates the expertise needed and assesses the risks involved through its New Products Risk Assessment process

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and maintaining systems and mechanisms to monitor risk responses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing risk occurrence information systems to provide early warning of events or situations that create risk for the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining a compliance culture and framework that ensures adherence to laws, rules and regulations, fair treatment and privacy of customers and prevention of money laundering and terrorist financing, all of which is reinforced through annual associate training and compliance review per the Compliance Program Policy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• implementing and reviewing risk measurement techniques that management may use to establish the Company's risk tolerance, assess risk likelihood and impact, maintain effective controls and analyze risk and control monitoring processes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing appropriate management reporting systems regarding the enterprise-wide risk exposures and allocation of capital, which Global Risk Scorecards and risk discipline dashboards provided quarterly to Board committees

Line of business-level objectives focus on why and where the particular business or business unit risk exists; how the business unit's management of its risks affects the Company's strategy, earnings, reputation and other key success factors; whether the line of business objectives are aligned with enterprise objectives; how effective internal procedures are integral to successful

business operations; and whether internal controls and their maintenance are reliable. Periodic review and attestation of risk/control effectiveness and alignment are required under ERM Program and organizational policy.

**Board of Directors and Board Risk & Compliance Committees.** First Financial's Board of Directors is responsible for understanding the Company's compliance and risk management objectives and risk tolerance, and as such, Board oversight of the Company's compliance and risk management activities is a key component to an effective risk management process. The Board's oversight responsibilities include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving the Company's risk appetite statements annually

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and guiding the Company's strategic direction and tolerance for risk, including the determination of the aggregate risk appetite

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying the senior managers who have the responsibility for managing risk

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitoring the Company's performance and overall risk profile, ensuring that the level of risk is maintained at prudent levels and is supported by adequate capital

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensuring that the Company implements sound fundamental principles that facilitate the identification, measurement, monitoring and control of risk aligned to COSO Internal Control principles

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensuring that adequate resources are dedicated to compliance and risk management

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• confirming that awareness of risk management activities is evident throughout the organization

The Board of Directors has defined broad risk tolerance levels, or limits, to guide management in the decision-making process, and is responsible for establishing information and communication requirements to ensure that risk management activities remain within these tolerance limits. The Risk and Compliance Committee, a standing committee of the Board of Directors, is responsible for carrying out the Board's responsibilities in this regard. Other standing committees of the Board (Audit, Compensation, Corporate Governance and Nominating, and Capital Markets) oversee particular areas of risk governance assigned specifically to them.

**Risk Committees.** The ERM program utilizes multiple cross-functional management committees as its primary assessment and communication mechanism for identified risks. These committees include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Board Enterprise Risk & Compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enterprise Risk Management

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Credit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CRA & Fair Banking

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Human Resources

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Vendor Management

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operational Risk

**32 First Financial Bancorp** 2025 Annual Report

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cybersecurity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Information Technology

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Balance Sheet Strategy / ALCO

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allowance for Credit Loss

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sarbanes-Oxley

Committee chairs play key roles in the execution of risk management activities throughout the enterprise and are responsible for continuous updates and communication among committee members in conjunction with the risk management department regarding changes to risk profiles, changes to risk assessments and the emergence of new risks that could impact the Company. Committee action items and risk recommendations are documented and tracked for resolution, with status reviewed quarterly by the ERMC and Board.

In addition to regular committee and risk discipline assignments, First Financial conducts periodic oversight mapping exercises. These pressure tests ensure that major risk committees are correctly matched to business units, exposures, and risk owners; that stated risk appetites reflect current and emerging realities; and that escalation protocols and cross-committee coordination are clear, especially for complex or ambiguous risks. The results of these mapping exercises are presented to the Board annually for review to inform potential realignment of committee charters or governance structure in response to business transformation, regulatory changes or strategic initiatives.

**Executive and Senior Management.** Members of executive and senior management are responsible for communicating risk appetite, managing risk activities that align with business strategy and delegating risk authority and tolerance to the responsible risk owners.

Management is responsible for identifying which processes and activities are critical to achieving the Company's business objectives and aligning those within approved tolerance levels. Management then delegates responsibility, authority and accountability to the appropriate risk owners who are responsible for ensuring that the respective processes and day-to-day activities are designed and implemented to manage the related risks within those delegated tolerance levels. Management not only analyzes and monitors risk management performance with KRI and KPI dashboards, but also embeds risk appetite-related goals in performance objectives and compensation awards.

**Chief Administrative Officer.** The CAO provides executive leadership to various critical administrative functions. The CAO's responsibilities include oversight of the Risk Management, Compliance, Legal, Human Resources, Information Security and Community Development departments. The CAO is responsible for ensuring regulatory compliance, implementing robust internal controls and fostering a culture of adherence to policies and procedures. Additionally, the CAO works with senior executives to develop strategic initiatives aimed at enhancing risk mitigation strategies, corporate responsibility and promoting the Bank's overall stability and growth.

**Chief Risk Officer.** The Chief Risk Officer is responsible for the oversight of the Company's ERM processes. The Chief Risk Officer may appoint other officers or establish other management committees as required for effective risk management and governance, including risk identification and assessment, risk measurement, risk monitoring, risk control or mitigation and risk reporting and assurance. The Chief Risk Officer is also responsible for the maintenance of procedures, methodologies and guidelines considered necessary to administer the ERM program. ERM program revisions and updates are coordinated annually with Policy Management Team.

**Chief Compliance Officer.** The Chief Compliance Officer is responsible for the oversight of the Company's compliance management function, which includes Bank Secrecy Act/Anti-Money Laundering and all other regulatory compliance. The Chief Compliance Officer is authorized to implement all necessary actions to ensure achievement of the objectives of an effective compliance program and may appoint other officers or establish other management committees as required for effective compliance management. The Chief Compliance Officer reviews and evaluates compliance issues and concerns and is responsible for monitoring and reporting results of the compliance efforts in addition to providing guidance to the Board of Directors and senior management on matters relating to compliance.

**Internal Audit.** Internal Audit is responsible for planning audit activities to periodically reassess the design and operation of key risk management processes and to make periodic evaluations of the ongoing accuracy and effectiveness of the communications from risk owners to senior management and from senior management to the Board of Directors. Audit results and remediation status are reviewed quarterly by ERMC and Board committees.

**First Financial Bancorp** 2025 Annual Report **33**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Risk Assessment Process.** The periodic assessment of risks is a key component of a sound ERM program. Managers, business line leaders and executives are responsible for developing the risk and control assessment for their individual departments, business lines and subsidiaries. The Chief Risk Officer, management and the Board Risk and Compliance committees are responsible for ensuring that risk is viewed and analyzed from an enterprise-level global perspective. Furthermore, interrelated risks are considered, assessing how a single risk or event may create multiple risks. GRC systems are utilized to aggregate and visualize risk assessment outcomes enterprise-wide.

Risk management programs, in each functional component and in aggregate, are designed to accomplish the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify risks and their respective owners

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• link identified risks and their mitigation to the Company's strategic objectives

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• utilize risk and control assessments that evaluate both inherent risks and their associated likelihood of occurrence and consequences, as well as the associated controls employed and their effectiveness in reducing risk; the risks and their associated likelihood of occurrence and consequences

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• encourage employees in all units to develop a working understanding of upstream and downstream activities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• develop strategies to manage risk, such as avoiding the risk; reducing the negative effect of the risk; transferring the risk to another party; and/or accepting some or all of the consequences of a particular risk

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prioritize the risk issues with regard to the current residual risk status and trend (tracked in risk discipline dashboards reported quarterly)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide reports to management and risk owners that will assist them in implementing appropriate risk management processes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assist management in assessing the alternatives for managing risks

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assist management in the development of risk management plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• track risk management/mitigation efforts through resolution with Board committee review

**Monitoring and Reporting.** The Board of Directors oversees risk reporting and monitoring through the Board Risk and Compliance Committee, which meets at least quarterly.

Management continually reviews any risk identified as key, as well as the appropriateness of established tolerance limits and the actions considered as necessary to mitigate key risks. As circumstances warrant, management provides recommendations to the Board Enterprise Risk and Compliance Committee related to changes or adjustments to key risks or tolerance limits. Changes and exceptions are tracked via GRC systems and reported in quarterly committee dashboards.

First Financial believes that communication is fundamental to successful risk management and productive reporting and communication between the risk management department, management and the Board of Directors is required for collaborative and effective risk management. This includes communication of emerging risks, regulatory developments, loss events, and risk appetite exceptions.

**CREDIT RISK**

Credit risk represents the risk of loss due to failure of a customer or counterparty to meet its financial obligations in accordance with contractual terms. First Financial manages credit risk through its underwriting and ongoing administration practices, periodically reviewing and approving its credit exposures using credit policies and guidelines approved by the Board of Directors. Quarterly independent loan review and CRM coverage assessments are performed, with risk ratings, loan downgrades, and policy exceptions tracked in the CRM scorecard, in alignment with internal policies and regulatory guidance.

**MARKET RISK**

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, foreign exchange rates and equity prices. The primary sources of market risk for First Financial are interest rate risk and liquidity risk.

**Interest rate risk.** Interest rate risk is the risk to earnings and the value of the Company's equity arising from changes in market interest rates. Interest rate risk arises in the normal course of business to the extent that there is a divergence between the amount of interest-earning assets and the amount of interest-bearing liabilities that are prepaid, withdrawn, re-priced or mature in specified periods. First Financial seeks to achieve consistent growth in net interest income and equity while managing volatility from shifts in market interest rates, while operating within acceptable limits established for interest rate risk and maintaining adequate levels of funding and liquidity.

**34 First Financial Bancorp** 2025 Annual Report

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Potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in the general level of interest rates. This interest rate risk arises primarily from the Company's normal business activities of gathering deposits and extending loans. Many factors affect First Financial's exposure to changes in interest rates, such as general economic and financial conditions, client preferences, historical pricing relationships, and re-pricing characteristics of financial instruments. The Company's earnings can also be affected by the monetary and fiscal policies of the U.S. Government and its agencies, particularly the Federal Reserve.

In managing interest rate risk, the Company establishes guidelines and strategies for asset and liability management, including measurement of short and long-term sensitivities to changes in interest rates, through our internal Balance Sheet Strategies and ALCO, which is comprised of senior officers from the treasury, risk management, credit administration, finance and lending areas. These guidelines and strategies are also reviewed with the Capital Markets Committee of our Board of Directors.

First Financial monitors its interest rate risk position using income simulation models and EVE sensitivity analyses that capture both short-term and long-term interest rate risk exposure. Income simulation involves forecasting NII under a variety of interest rate scenarios. EVE is calculated by discounting the cash flows for all balance sheet instruments under different interest rate scenarios. First Financial uses EVE sensitivity analysis to understand the impact of changes in interest rates on long-term cash flows, income and capital. For both NII and EVE modeling, First Financial leverages instantaneous parallel shocks to evaluate interest rate risk exposure across rising and falling rate scenarios. Additional scenarios evaluated include various non-parallel yield curve twists.

First Financial's interest rate risk models are based on the contractual and assumed cash flows and repricing characteristics for the Company's assets, liabilities and off-balance sheet exposure. A number of assumptions are also incorporated into the interest rate risk models, including prepayment behaviors and repricing spreads for assets in addition to attrition and repricing rates for liabilities. Assumptions are primarily derived from behavior studies of the Company's historical client base and are continually refined. Modeling the sensitivity of NII and EVE to changes in market interest rates is highly dependent on the assumptions incorporated into the modeling process.

Non-maturity deposit modeling is particularly dependent on the assumption for repricing sensitivity known as a beta. Beta is the amount by which First Financial's interest bearing non-maturity deposit rates will increase when short-term interest rates rise. The Company utilized a weighted average deposit beta of 46% in its interest rate risk modeling as of December 31, 2025. First Financial also includes an assumption for the migration of non-maturity deposit balances into CDs and money markets for all upward rate scenarios beginning with the +100 bps scenario, thereby increasing deposit costs and reducing asset sensitivity.

Presented below is the estimated impact on First Financial's NII and EVE as of December 31, 2025, assuming immediate, parallel shifts in interest rates:

---

| | | | |
|:---|:---|:---|:---|
| **Table 18 • Rate Change Impact on NII and EVE** | **Table 18 • Rate Change Impact on NII and EVE** | **Table 18 • Rate Change Impact on NII and EVE** | **Table 18 • Rate Change Impact on NII and EVE** |
|  | % Change from base case for<br> immediate parallel changes in rates | % Change from base case for<br> immediate parallel changes in rates | % Change from base case for<br> immediate parallel changes in rates |
|  | -100 bps | +100 bps | +200 bps |
| NII - Year 1 | (2.85)% | 2.52% | 4.14% |
| NII - Year 2 | (4.53)% | 3.57% | 5.45% |
| EVE | (2.04)% | 0.96% | 1.03% |

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*"Risk-neutral"* refers to the absence of a strong bias toward either asset or liability sensitivity. *"Asset sensitivity"* is when a company's interest-earning assets reprice more quickly or in greater quantities than interest-bearing liabilities. Conversely, *"liability sensitivity"* is when a company's interest-bearing liabilities reprice more quickly or in greater quantities than interest-earning assets. In a rising interest rate environment, asset sensitivity results in higher net interest income while liability sensitivity results in lower net interest income. In a declining interest rate environment, asset sensitivity results in lower net interest income while liability sensitivity results in higher net interest income.

The projected results for NII and EVE reflect an asset sensitive position. Deposit balances have migrated toward more rate sensitive product segments over the last several quarters, moderating the asset sensitivity of the balance sheet. Variances in the sensitivity between the down and up rate scenarios are driven by an assumed compositional shift in the funding makeup in the up rate scenarios. First Financial continues to manage its balance sheet with a bias toward modest asset sensitivity while simultaneously balancing the potential earnings impact of this strategy.

**First Financial Bancorp** 2025 Annual Report **35**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

First Financial continually evaluates the sensitivity of its interest rate risk position to modeling assumptions. The following table reflects First Financial's estimated NII sensitivity profile as of December 31, 2025 assuming a 25% increase and a 25% reduction to the beta assumption on managed rate deposit products:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Table 19 • Estimated Interest Sensitivity on NII** | **Table 19 • Estimated Interest Sensitivity on NII** | **Table 19 • Estimated Interest Sensitivity on NII** | **Table 19 • Estimated Interest Sensitivity on NII** | |
|  | Beta sensitivity (% change from base) | Beta sensitivity (% change from base) | Beta sensitivity (% change from base) | Beta sensitivity (% change from base) |
|  | +100 BP | +100 BP | +200 BP | +200 BP |
|  | Beta 25% lower | Beta 25% higher | Beta 25% lower | Beta 25% higher |
| NII-Year 1 | 3.93% | 1.11% | 5.57% | 2.71% |
| NII-Year 2 | 4.96% | 2.19% | 6.86% | 4.04% |

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See the Net Interest Income section of Management's Discussion and Analysis for further discussion.

Table 20 – Market Risk Disclosure projects the principal maturities and yields of First Financial's interest-bearing financial instruments at December 31, 2025 for the next five years and thereafter, as well as the fair value of the instruments. For loans, securities and liabilities with contractual maturities, the table presents principal cash flows and related weighted-average interest rates by contractual maturities. For investment securities, including MBS and CMO, principal cash flows are based on estimated average lives. For loan instruments without contractual maturities, such as credit card loans, principal payments are allocated based on historical payment activity trends. Maturities for interest-bearing liability accounts with no contractual maturity dates are estimated according to historical experience of cash flows and current expectations of client behaviors when calculating fair value, but are included in the maturing in one year or less category as they can be withdrawn on demand.

**36 First Financial Bancorp** 2025 Annual Report

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** | **Table 20 • Market Risk Disclosure** |
|  |  |  |  |  |  |  |  | Fair Value |
|  | Principal Amount Maturing In | Principal Amount Maturing In | Principal Amount Maturing In | Principal Amount Maturing In | Principal Amount Maturing In | Principal Amount Maturing In | Principal Amount Maturing In | December 31, |
| *(Dollars in thousands)* | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | 2025 |
| **Rate sensitive assets** |  |  |  |  |  |  |  |  |
| Fixed interest rate loans <sup>(1)</sup> | $893828 | $532509 | $428532 | $387325 | $375391 | $1609762 | $4227347 | $4124467 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 6.63% | 6.12% | 6.42% | 6.40% | 6.18% | 4.80% | 5.77% |  |
| Variable interest rate loans <sup>(1)</sup> | $2007752 | $1429469 | $1181091 | $993863 | $950596 | $2464418 | $9027189 | $8953827 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 6.53% | 6.54% | 6.48% | 6.33% | 6.99% | 6.64% | 6.58% |  |
| Fixed interest rate securities | $383642 | $148008 | $178167 | $89641 | $173905 | $2184310 | $3157673 | $3156272 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 1.78% | 5.88% | 5.03% | 3.51% | 3.99% | 3.98% | 3.65% |  |
| Variable interest rate securities | $174702 | $69202 | $48285 | $85005 | $205008 | $290602 | $872804 | $869994 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 3.53% | 5.93% | 5.46% | 5.35% | 5.59% | 4.08% | 4.61% |  |
| Other earning assets | $597338 | $0 | $0 | $0 | $0 | $0 | $597338 | $597338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 3.65% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 3.65% |  |
| **Rate sensitive liabilities** |  |  |  |  |  |  |  |  |
| Noninterest-bearing checking <sup>(2)</sup> | $3465470 | $0 | $0 | $0 | $0 | $0 | $3465470 | $3465470 |
| Savings and interest-bearing checking <sup>(2)</sup> | $9334145 | $0 | $0 | $0 | $0 | $0 | $9334145 | $9334145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 1.86% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 1.86% |  |
| Time deposits | $3538458 | $57099 | $14914 | $6313 | $5443 | $0 | $3622227 | $3616237 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 3.68% | 2.54% | 1.54% | 0.77% | 0.75% | 0.00% | 3.64% |  |
| Fixed interest rate borrowings | $679862 | $4531 | $4530 | $4531 | $4531 | $296323 | $994308 | $946851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 3.92% | 5.38% | 5.38% | 5.38% | 5.38% | 6.46% | 4.70% |  |
| Variable interest rate borrowings | $0 | $0 | $0 | $0 | $150000 | $45076 | $195076 | $201772 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rate | 0.00% | 0.00% | 0.00% | 0.00% | 8.96% | 7.31% | 8.58% |  |

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<sup>(1)</sup> Includes loans held for sale

<sup>(2)</sup> Deposits without a stated maturity are represented as maturing within one year due to the ability of the client to withdraw deposited amounts on demand.

**Liquidity risk.** Liquidity risk is the potential that an entity will be unable to meet its obligations as they come due because of an inability to liquidate assets or obtain funding, or that it cannot easily unwind or offset exposures without significantly lowering market prices because of inadequate market depth or market disruptions. Management focuses on maintaining and enhancing liquidity by maximizing collateral-based liquidity availability. First Financial manages liquidity in relation to the trend and stability of deposits; degree and reliance on short-term, volatile sources of funds, including any undue reliance on borrowings or brokered deposits to fund longer-term assets. Management identifies, measures, monitors and manages liquidity while seeking to maintain diversification of funding sources, both on- and off-balance-sheet.

Management, including the Balance Sheet Strategies and ALCO, monitors liquidity through a regular review of asset and liability maturities, funding sources, and loan and deposit forecasts. The Company continually refines and updates its liquidity risk management processes, such as refining the contingency funding plan, meeting frequently and securing additional contingent borrowing capacity. The Company maintains strategic and contingency liquidity plans to ensure sufficient available funding to satisfy requirements for balance sheet growth, properly manage capital market funding sources and to address unexpected liquidity requirements.

Management closely monitors the usage of excess business deposits, the balance of personal deposits and the broader macroeconomic environment. This monitoring includes consideration of various metrics and establishment of internal thresholds related to the composition of the balance sheet, borrowing and liquidity. Balance sheet composition metrics reviewed include the loan to deposit, loans to total assets and core deposits to total assets ratios among others. Borrowing composition monitoring includes, but is not limited to, consideration of borrowing capacity as a percentage of total assets, brokered CDs as a percentage of total assets and Fed funds lines to total assets. Liquidity composition ratios include remaining liquidity to total assets, and tier 1 liquidity sources as a percentage of both 30 and 90 day maturing liabilities, among others. As of December 31, 2025, all metrics reviewed were within the Company's policy limits.

**First Financial Bancorp** 2025 Annual Report **37**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

The Company utilizes its contingency funding plan to assess the ability of the Company to successfully navigate significant liquidity events. The contingency funding plan considers various sources of liquidity, including loan and deposit growth rates, decreasing access to secured and unsecured wholesale funding sources and declining financial performance, to determine First Financial's ability to meet liquidity requirements over certain time horizons and in certain stress scenarios. The contingency funding plan also includes the process for creating a CFTF. During a liquidity crisis, the CFTF, via the Balance Sheet Strategies and ALCO, would assess and identify key mitigation strategies needed for addressing the crisis. These mitigation strategies would be assigned to appropriate personnel for implementation with established targets and reporting requirements. Typical mitigation strategies would include, but not be limited to, curtailing loan originations, pricing options for stabilizing/growing deposits, options for expanding wholesale funding sources, and asset liquidation options.

For further discussion of the Company's liquidity, please see the Liquidity section within Management's Discussion and Analysis.

**OPERATIONAL RISK**

Operational risk is the risk of loss due to human behavior, inadequate or failed internal systems and controls and external influences such as market conditions, fraudulent activities, natural disasters and security risks. First Financial continuously strives to strengthen the Company's system of internal controls and operating processes as well as associates' ability to assess the impact on earnings and capital from operational risk. GRC systems record operational loss events and KRI. The vendor risk management program, incident response and compliance with the NIST Cybersecurity Framework are periodically reviewed and reported, per the Operational Risk Program and Vendor Management Policy.

**COMPLIANCE RISK**

Compliance risk represents the risk of regulatory sanctions, reputational impact or financial loss resulting from the Company's failure to comply with rules and regulations issued by the various banking agencies and standards of good banking practice. Activities which may expose First Financial to compliance risk include, but are not limited to, those dealing with the prevention of money laundering, privacy and data protection, community reinvestment initiatives, fair lending challenges resulting from the Company's ongoing management of its banking center network and employment and tax matters. First Financial's annual all-associate compliance training and continuous review process are in alignment with regulatory guidance.

On at least an annual basis, the Chief Compliance Officer provides a formal compliance risk assessment summary to the ERMC and the Board Risk & Compliance Committee, including exposures, regulatory changes, areas of focus, testing results and management's action plans for issue remediation and escalation.

**STRATEGIC AND REPUTATION RISK**

Strategic risk represents the risk of loss due to failure to fully develop and execute business plans, failure to assess current and new business opportunities, markets and products, inability to effectively manage human capital risk factors such as satisfaction, engagement, attrition, retention, and inclusion and any other event not identified in the defined risk types previously mentioned. Strategic risk focuses on analyzing factors that affect the direction of the institution or improper implementation of decisions.

Reputation risk represents the risk of loss or impairment of earnings and capital from negative publicity. This affects the ability of First Financial to establish new relationships or services or to continue servicing existing relationships. Reputation risk is recognized by the effect that public opinion could have on First Financial's franchise value and has evolved in recent years with the growth in social media. First Financial also seeks to build social responsibility into its brand and formed a corporate responsibility working group that prepares its Corporate Social Responsibility report, which highlights First Financial's efforts, goals, and plans to help the environment and its communities.

The Bank manages strategic and reputation risks through operating routines designed to identify risks, controls and mitigation strategies, with particular emphasis on risks arising from new products, new business processes and negative client feedback.

Strategic risk initiatives and reputation impact events are included in quarterly ERMC reporting and periodic Board discussions.

**INFORMATION TECHNOLOGY RISK**

**38 First Financial Bancorp** 2025 Annual Report

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Information technology risk is the risk that the information technologies utilized by the Company are not efficiently and effectively supporting the current and future needs of the business, operating as intended or compromise the availability, integrity and reliability of data and information. This risk also considers whether or not the Company's information technology exposes the Company's assets to potential loss or misuse, or threatens the Company's ability to sustain the operation of critical business processes. Risks are assessed via the IT Risk Program, with quarterly KRI and KPI monitoring and incident reporting.

**CYBERSECURITY RISK**

Cybersecurity (cyber) risk is differentiated from information technology risk by threat interactions that yield high impact consequences and ever-increasing probability. First Financial continues to be the target of various evolving and adaptive cyber attacks, including malware, phishing and distributed denial-of-service, in order to disrupt the operations of financial institutions, potentially test their cybersecurity capabilities, commit fraud, or obtain confidential, proprietary or other information. While standard security operations address most day-to-day incidents, cyber risk includes threats and attacks that often use advanced tools, techniques and processes to evade detection or inflict maximum damage to an organization's information assets. Cyber threats and attacks adapt and evolve rapidly, so First Financial works to continuously enhance controls and processes to protect its networks and applications from attack, damage or unauthorized access. Critical components to the Company's cyber risk control structure include corporate governance, threat intelligence, security awareness training and patch management programs. Cyber risk mitigation includes effectively identifying, protecting against, detecting, responding to and recovering from cyber threats. Cyber risk controls are mapped to the NIST Cybersecurity Framework and policy effectiveness is annually reviewed by the Board and senior management.

**LEGAL RISK**

Legal risk encompasses the impact of unenforceable contracts, lawsuits or adverse judgments, which can disrupt or otherwise negatively affect the Company's operations or condition. Legal risk also includes the exposure from litigation, fiduciary relationships and contractual obligations from both traditional and nontraditional financial institution activities. Legal risk is present in all areas of the Company and its activities. Legal risk assessment and mitigation activities are aligned with the Regulatory/Legal Risk Functional Program and reviewed as part of quarterly compliance committee reporting.

**FOURTH QUARTER REVIEW**

For the three months ended December 31, 2025, the Company reported net income of $62.4 million, or $0.64 per diluted common share. These results compare to net income of $71.9 million, or $0.75 per diluted common share, for the third quarter of 2025. Return on average assets for the fourth quarter of 2025 was 1.22% compared to a return on assets of 1.54% in the third quarter of 2025.

Loan balances increased $1.7 billion from the third quarter of 2025, which included $1.6 billion from the Westfield acquisition, as well as an $80.1 million increase in finance leases and a $79.6 million increase in C&I balances. Compared to the linked quarter, total deposit balances increased $2.0 billion, which included $1.8 billion from the Westfield acquisition. Additionally, First Financial issued $300.0 million of subordinated debt during the fourth quarter. These notes have a ten year maturity and carry a 6.375% interest rate.

Net interest margin for the fourth quarter of 2025 was 3.96%, or 3.98% on a fully tax-equivalent basis, which was a 4 bp decline from the third quarter of 2025. This decrease was driven by a 19 bp decline in loan yields outpacing a 15 bp decline in funding costs.

Noninterest income for the fourth quarter of 2025 was $64.8 million, a decrease of $8.8 million, or 11.9%, from the prior quarter. Net losses in investment securities increased $12.5 million due to the strategic repositioning of a portion of the portfolio during the fourth quarter, as well as $4.7 million of impairment losses on securities with credit deterioration. Foreign exchange income increased by $6.0 million, or 36.2% from the third quarter to $22.7 million, due to increased product demand, and wealth management fees grew by $1.9 million, or 26.4%, due to higher business succession income. Leasing business income declined $1.5 million, or 7.0%, during the fourth quarter when compared to the third quarter due to lower gains from the sale of leases.

Noninterest expenses were $149.5 million for the fourth quarter of 2025, which was an increase of $15.3 million, or 11.4%, from the linked quarter. Salaries and benefit costs increased by $4.5 million, or 5.6%, due to the Westfield acquisition as well as an increase in incentive compensation tied to increases in fee income. Professional services increased by $3.9 million, or 169.3%, and intangible asset amortization increased $1.6 million, or 66.5%, both primarily due to the Westfield acquisition.

**First Financial Bancorp** 2025 Annual Report **39**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

The total ACL, including both funded and unfunded reserves, was $206.7 million at December 31, 2025, which included $25.9 million related to the Westfield acquisition due to the Company's early adoption of ASU 2025-08. First Financial recorded $10.1 million in total provision expense during the fourth quarter. The provision expense was driven by net charge-offs during the period along with higher reserves on individually evaluated loans. The Company recorded 27 bps of annualized net chargeoffs as a percentage of loan balances during the fourth quarter, which was an 11 bp increase from 16 bps in the third quarter. Total classified asset balances at the end of the fourth quarter were 1.11% of total assets, which compared to 1.18% at the end of third quarter.

**CRITICAL ACCOUNTING ESTIMATES**

First Financial's Consolidated Financial Statements are prepared based on the application of accounting policies, the most significant of which are described in Note 1 – Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements. These policies require the reliance on estimates and assumptions which are inherently subjective and may be susceptible to significant change. Changes in underlying factors, assumptions or estimates could have a material impact on First Financial's future financial condition and results of operations. In management's opinion, some of these estimates and assumptions have a more significant impact than others on First Financial's financial reporting.

For First Financial, these estimates and assumptions include accounting for the ACL - loans and leases, goodwill and income taxes. The estimates and assumptions made are based upon historical experience, future forecasts, or other factors that management believes to be reasonable under the circumstances. Due to the inherent nature of the judgment and assumptions used, actual results may differ from estimates, which could have a material impact on our financial condition and results of operations.

**Allowance for credit losses - loans and leases** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Overview.** The ACL on loans and leases represents management's estimate of expected credit losses over the expected life of the Company's loan and lease portfolio. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the ACL in those future periods.

The ACL on loans and leases, as reported in our Consolidated Balance Sheets, is adjusted by provision expense, which is recognized in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Judgments and Uncertainties.** Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered therein. These adjustments are commonly known as the Qualitative Framework.

First Financial quantitatively models expected credit loss using PD, LGD and EAD over the R&S forecast period, reversion and post-reversion periods. Utilizing third-party software, First Financial forecasts PD by using a parameterized transition matrix approach. Average transition matrices are calculated over the TTC period, which was defined as the period from December 2007 to December 2022. TTC transition matrices are adjusted under forward-looking macroeconomic expectations to obtain R&S forecasts. First Financial is not required to develop forecasts over the full contractual term of the financial asset or group of financial assets. Rather, for periods beyond which the entity is able to make or obtain R&S forecasts of expected credit losses, the Company reverts in a straight line manner over a one year period to an average TTC loss level that is reflective of the prepayment adjusted contractual term of the financial asset or group of financial assets. First Financial elected a two year R&S period which is forecasted using econometric data sourced from Moody's, an industry-leading independent third party.

FFB utilizes a non-parametric loss curve approach embedded within a third-party software for estimating LGD. The PD multiplied by LGD produces an expected loss rate that, when calculating the ACL, is applied to contractual loan cash flows, adjusted for expected future rates of principal prepayments.

The Company adjusts its quantitative model for certain qualitative factors to reflect the extent to which management expects current conditions and R&S forecasts to differ from the conditions that existed for the period over which

**40 First Financial Bancorp** 2025 Annual Report

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historical information was evaluated. The Qualitative Framework reflects changes related to relevant data, such as changes in asset quality trends, portfolio growth and composition, national and local economic factors, credit policy and administration and other factors not considered in the base quantitative model.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Effect if Actual Results Differ From Assumptions.** The allowance represents management's best estimate, but significant downturns in circumstances relating to loan quality and economic conditions could require additional allowance. Likewise, an upturn in loan quality and improved economic conditions may result in a reduction in the required allowance. In either instance, unanticipated changes could have a significant impact on the results of operations.

One of the most significant judgments used in determining the ACL is the macroeconomic forecast provided by a third party. The economic indices sourced from the macroeconomic forecast and used in projecting loss rates include the forecasted manufacturing overtime, business and personal bankruptcies, rental vacancy rates, median asking rent, changes in commercial real estate prices, household debt service coverage, S&P 500 performance, housing sales, among other variables. When calculating the ACL, management typically utilizes the macroeconomic forecast baseline, which is the scenario under which the probability that the economy will perform better than this projection is equal to 50%, the same as the probability that it will perform worse. However several macroeconomic forecast scenarios are considered by management as changes in the macroeconomic forecast could significantly impact the calculated estimated credit losses.

Another variable utilized in the calculation of the allowance to which the calculation may be sensitive is the prepayment rate. The model incorporates a prepayment rate calculated using a trailing twelve month average by portfolio. Changes in prepayment speeds that vary from though the cycle actual prepayment activity may have a significant impact on the expected duration of the various loan portfolios and could result in an inaccurate estimate of loan and lease cashflows subject to the ACL.

The provision for credit loss recorded through earnings is the amount necessary to maintain the ACL at the amount of expected credit losses. The amount of provision expense and the corresponding level of ACL on loans are based on our evaluation of the collectability of the loan portfolio. Management's evaluation of collectibility is based upon historical loss experience, reasonable and supportable forecasts, and other significant qualitative and quantitative factors.

**Goodwill**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Overview.** Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess cost of the acquisition over the fair value of net assets acquired is recorded as goodwill. The Company's goodwill is accounted for in a single reporting unit representing the consolidated entity. The Company is required to evaluate goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

In testing goodwill for impairment, GAAP permits First Financial to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, First Financial evaluates events and circumstances which may include, but are not limited to, the general economic environment, the banking industry and market conditions, the Company's overall financial performance, the performance of the Company's common stock, the key financial performance metrics of the Bancorp's reporting units and events affecting the reporting unit to determine if it is not more likely than not that the fair value of a reporting unit is less than its carrying amount. If the quantitative impairment test is required or the decision to bypass the qualitative assessment is elected, First Financial performs the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, including goodwill.

First Financial performs its annual impairment test effective October 1, absent events or changes in circumstances that indicate the carrying value of goodwill may not be recoverable. These annual tests indicated that the Company's goodwill was not impaired as of October 1, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Judgments and Uncertainties.** The determination of fair values is based on valuations using management's assumptions of future growth rates, future attrition, discount rates, multiples of earnings or other relevant factors. In addition, we engage third party specialists to assist in the development of fair values. Preliminary estimates of fair values may be adjusted for up to one year subsequent to the merger or acquisition date if new information is obtained

**First Financial Bancorp** 2025 Annual Report **41**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

about facts and circumstances that existed as of the merger or acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during this period are recognized in the current reporting period. Management uses various valuation methodologies to estimate the fair value of acquired assets and liabilities, and these methodologies often involve a significant degree of judgment, particularly when liquid markets do not exist for the particular item being valued. Examples of such items include loans, deposits, identifiable intangible assets, and certain other assets and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Effect if Actual Results Differ From Assumptions.** Changes in these factors, as well as downturns in economic or business conditions, could have a significant adverse impact on the carrying value of assets, including goodwill and liabilities, which could result in impairment losses affecting our financial statements as a whole and our banking subsidiary in which the goodwill resides.

**Income taxes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Overview.** The Company is subject to the income tax laws of the U.S., its states, and the municipalities in which we operate. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant government taxing authorities. We evaluate our income tax expense and the carrying amount of deferred tax assets and liabilities on a quarterly basis, making adjustments as new information becomes available. In accordance with FASB ASC 740-10, we apply a "more-likely-than-not" recognition threshold and a specific measurement attribute to all tax positions taken or expected to be taken on our tax returns, for purposes of recognition in the financial statements. For additional details regarding our income tax provision and the related assets and liabilities, please refer to Note 16 – Income Taxes in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Judgments and Uncertainties.** In determining the provision for income tax expense, the Company is required to exercise judgment and make interpretations regarding the application of complex tax laws. The Company must also make estimates concerning the timing of when certain items will impact taxable income across the various tax jurisdictions in which it operates. Differences in interpretation of these tax laws may give rise to disputes, which could be subject to review or adjudication by the courts within these jurisdictions, or may be resolved with the taxing authorities during the course of an examination or audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Effect if Actual Results Differ From Assumptions.** Although management believes the judgments and estimates applied are reasonable, actual results may differ from these estimates, potentially resulting in material gains or losses. If the Company prevails in matters for which tax reserves have been established, or if it is required to pay amounts exceeding such reserves, the effective income tax rate in the relevant financial statement period could be materially impacted. An unfavorable tax settlement would increase the effective income tax rate for the period in which the matter is resolved, while a favorable tax settlement would decrease the effective income tax rate for that period

Management has discussed the development and selection of these critical accounting estimates with the Audit Committee and the Audit Committee has reviewed our disclosure relating to it in this "Management's Discussion and Analysis of Financial Condition and Results of Operations."

**FORWARD-LOOKING STATEMENTS**

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as ''believes,'' ''anticipates,'' "likely," "expected," "estimated," ''intends'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

**42 First Financial Bancorp** 2025 Annual Report

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Management's ability to effectively execute its business plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that any of the anticipated benefits of the Company's acquisitions will not be realized or will not be realized within the expected time period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of changes in accounting policies and practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in consumer spending, borrowing and saving and changes in unemployment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in customers' performance and creditworthiness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to develop and execute effective business plans and strategies.

Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in our Form 10-K for the year ended December 31, 2025, as well as our other filings with the SEC, which are available on the SEC website at www.sec.gov.

All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as required by law, the Company does not assume any obligation to update any forward-looking statement.

**First Financial Bancorp** 2025 Annual Report **43**

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**Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Management's Report on Internal Control over Financial Reporting**

First Financial's management is responsible for establishing and maintaining adequate internal control over financial reporting. First Financial's internal control over financial reporting is a process designed under the supervision of First Financial's chief executive officer and chief financial officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Any system of internal control, no matter how well designed, has inherent limitations, including the possibility that a control can be circumvented or overridden and misstatements due to error or fraud may occur and not be detected. Also, because of changes in conditions, internal control effectiveness may vary over time. Accordingly, even an effective system of internal control will provide only reasonable assurance with respect to financial statement preparation. As of December 31, 2025, First Financial's management, including the chief executive officer and the chief financial officer, evaluated the effectiveness of First Financial's internal controls over financial reporting, using as its framework for that evaluation the Internal Control – Integrated Framework published by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission (2013 framework). Based on the evaluation, we believe that, as of December 31, 2025, our internal control over financial reporting is effective based on those criteria.

As permitted, First Financial has excluded the operations of Westfield Bancorp, Inc., acquired in November 2025 as described in Note 24 to the Consolidated Financial Statements, from the scope of management's report on internal control over financial reporting.

Crowe LLP, the independent registered public accounting firm that audited the consolidated financial statements included in this Form 10-K, has issued an attestation report on First Financial's internal control over financial reporting as of December 31, 2025. The report, which expresses an unqualified opinion on First Financial's internal control over financial reporting as of December 31, 2025, is included in the information that follows under the heading "Report of Independent Registered Public Accounting Firm."

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| | |
|:---|:---|
| /s/ Archie M. Brown | /s/ James M. Anderson |
| President and Chief Executive Officer | Executive Vice President, Chief Financial Officer and Chief Operating Officer |
| February 19, 2026 | February 19, 2026 |

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**44 First Financial Bancorp** 2025 Annual Report

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| | |
|:---|:---|
| ![crowe2018a07.jpg](ffbc-20251231_g1.jpg) | **Crowe LLP**<br>Independent Member Crowe Global |

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Report of Independent Registered Public Accounting Firm

Shareholders and the Board of Directors of First Financial Bancorp

Cincinnati, Ohio

**Opinions on the Financial Statements and Internal Control over Financial Reporting**

We have audited the accompanying consolidated balance sheets of First Financial Bancorp (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income (loss), changes in shareholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework: (2013) issued by COSO.

**Basis for Opinions**

The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. As permitted, the Company has excluded the operations of Westfield Bancorp, Inc. acquired during 2025, which is described in Note 24 of the consolidated financial statements, from the scope of management's report on internal control over financial reporting. As such, it has also been excluded from the scope of our audit of internal control over financial reporting.

**First Financial Bancorp** 2025 Annual Report **45**

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Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

***Allowance for Credit Losses for Loans Qualitative Factors - Refer to Notes 1 and 6 to the financial statements***

The allowance for credit losses (the "ACL") is an accounting estimate of expected credit losses over the estimated life of financial assets carried at amortized cost and off-balance-sheet credit exposures in accordance with ASC 326. The standard requires a financial asset (or a group of financial assets), including the Company's loan portfolio, measured at amortized cost, to be presented at the net amount expected to be collected. Estimates of expected credit losses for loans are based on historical experience, current conditions and reasonable and supportable forecasts over the estimated life of the loans. In order to estimate the expected credit losses, the Company utilizes a loss estimation model.

Management quantitatively models expected credit loss using Probability of Default ("PD"), Loss Given Default ("LGD"), and Exposure at Default ("EAD") over the Reasonable and Supportable ("R&S") forecast, reversion and post-reversion periods. Utilizing third-party software, the Company forecasts PD by using transition matrices to evaluate when events are more or less likely to occur based on previous events. The transition matrices are adjusted under forward-looking macroeconomic expectations to obtain R&S forecasts. Management utilizes third-party software for estimating LGD. The PD multiplied by LGD produces an expected loss rate that, when calculating the ACL, is applied to contractual loan cash flows, adjusted for expected future rates of principal prepayments. The Company adjusts its quantitative model for certain qualitative factors to reflect the extent to which management expects current conditions and R&S forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The qualitative framework reflects changes related to relevant data, such as changes in asset quality trends, portfolio growth and composition, national and local economic factors, credit policy and administration and other factors not considered in the base model. The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The ACL is influenced by loan volumes, risk rating migration, delinquency status and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions.

The Allowance for Credit Losses for Loans was identified by us as a critical audit matter because of the extent of auditor judgment applied and significant audit effort to evaluate the significant subjective and complex judgments made by management. The principal considerations resulting in our determination included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant auditor judgment and effort were used in evaluating the qualitative factors used in the calculation.

**46 First Financial Bancorp** 2025 Annual Report

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant audit effort related to the completeness and accuracy of the high volume of data used in the model computation.

The primary procedures performed to address the critical audit matter included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Testing the effectiveness of management's internal controls over the preparation and evaluation of the ACL calculation, significant model assumptions, development and reasonableness of qualitative factors, completeness and accuracy of data used in the calculation, systems used in the development of the estimate, and the appropriateness of the overall calculation as well as control over the independent model validation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Substantively testing management's process for developing qualitative factors and assessing relevance and reliability of data used to develop factors, including evaluating management's judgments and assumptions for reasonableness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Substantively testing the mathematical accuracy of the EAD model including the completeness and accuracy of loan data used in the model to estimate ACL.

![Monaghan_Jennifer_sig_crowe.jpg](ffbc-20251231_g2.jpg)

Crowe LLP

We have served as the Company's auditor since 2015, which is the year the engagement letter was signed for the audit of the 2016 financial statements.

Louisville, Kentucky <br> February 19, 2026

**First Financial Bancorp** 2025 Annual Report **47**

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**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| *(Dollars in thousands)* | 2025 | 2024 |
| **Assets** |  |  |
| Cash and due from banks | $178553 | $174258 |
| Interest-bearing deposits with other banks | 597338 | 730228 |
| Investment securities available-for-sale, at fair value (amortized cost $4,182,075 at December 31, 2025 and $3,512,652 at December 31, 2024) | 3971932 | 3183776 |
| Investment securities held-to-maturity (fair value $54,334 at December 31, 2025 and $68,989 at December 31, 2024) | 58545 | 76960 |
| Other investments | 129564 | 114598 |
| Loans held for sale, at fair value | 16953 | 13181 |
| Loans and leases |  |  |
| &nbsp;&nbsp;&nbsp;Commercial & industrial | 4632241 | 3815858 |
| &nbsp;&nbsp;&nbsp;Lease financing | 638527 | 598045 |
| &nbsp;&nbsp;&nbsp;Construction real estate | 677339 | 779446 |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 4384556 | 4061744 |
| &nbsp;&nbsp;&nbsp;Residential real estate | 1832184 | 1462284 |
| &nbsp;&nbsp;&nbsp;Home equity | 1005204 | 849039 |
| &nbsp;&nbsp;&nbsp;Installment | 188694 | 133051 |
| &nbsp;&nbsp;&nbsp;Credit card | 65325 | 62311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total loans and leases** | 13424070 | 11761778 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for credit losses | (186487) | (156791) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loans and leases** | 13237583 | 11604987 |
| Premises and equipment | 204760 | 197965 |
| Operating leases | 214003 | 209119 |
| Goodwill | 1099524 | 1007656 |
| Other intangibles | 118832 | 79291 |
| Accrued interest and other assets | 1301792 | 1178242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $21129379 | $18570261 |
| **Liabilities** |  |  |
| Deposits |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing demand | $3360613 | $3095724 |
| &nbsp;&nbsp;&nbsp;Savings | 5973532 | 4948768 |
| &nbsp;&nbsp;&nbsp;Time | 3622227 | 3152265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 12956372 | 11196757 |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing | 3465470 | 3132381 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total deposits** | 16421842 | 14329138 |
| FHLB short-term borrowings | 675000 | 625000 |
| Other short-term borrowings | 332 | 130452 |
| **&nbsp;&nbsp;&nbsp;&nbsp; Total short-term borrowings** | 675332 | 755452 |
| Long-term debt | 514052 | 347509 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total borrowed funds** | 1189384 | 1102961 |
| Accrued interest and other liabilities | 748937 | 700121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 18360163 | 16132220 |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock - no par value |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized - 160,000,000 shares; Issued - 104,281,794 shares in 2025 and in 2024 | 1647618 | 1642055 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 1437286 | 1276329 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (189942) | (289799) |
| &nbsp;&nbsp;Treasury stock, at cost, 5,760,068 shares in 2025 and 8,786,954 shares in 2024 | (125746) | (190544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | 2769216 | 2438041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $21129379 | $18570261 |

---

See Notes to Consolidated Financial Statements

**48 First Financial Bancorp** 2025 Annual Report

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**Consolidated Statements of Income**

---

| | | | |
|:---|:---|:---|:---|
| | Years ended December 31, | Years ended December 31, | Years ended December 31, |
| *(Dollars in thousands except per share data)* | 2025 | 2024 | 2023 |
| **Interest income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans and leases, including fees | $819151 | $836541 | $743770 |
| &nbsp;&nbsp;&nbsp;Investment securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 148036 | 124936 | 125520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 8995 | 10835 | 13901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest on investment securities | 157031 | 135771 | 139421 |
| &nbsp;&nbsp;&nbsp;Other earning assets | 25722 | 29783 | 19813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total interest income** | 1001904 | 1002095 | 903004 |
| **Interest expense** |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 310752 | 331092 | 202010 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 24842 | 38856 | 53378 |
| &nbsp;&nbsp;&nbsp;Long-term borrowings | 24264 | 20137 | 19846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total interest expense** | 359858 | 390085 | 275234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 642046 | 612010 | 627770 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses - loans and leases | 36525 | 49211 | 43074 |
| &nbsp;&nbsp;&nbsp;Provision for (recapture of) credit losses - unfunded commitments | 1142 | (1552) | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after provision for credit losses** | 604379 | 564351 | 584663 |
| **Noninterest income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 31366 | 29279 | 27289 |
| &nbsp;&nbsp;&nbsp;Wealth management fees | 32563 | 28720 | 26081 |
| &nbsp;&nbsp;&nbsp;Bankcard income | 14226 | 14399 | 14039 |
| &nbsp;&nbsp;&nbsp;Client derivative fees | 7802 | 4701 | 5155 |
| &nbsp;&nbsp;&nbsp;Foreign exchange income | 65666 | 56064 | 54051 |
| &nbsp;&nbsp;&nbsp;Leasing business income | 80020 | 67641 | 51322 |
| &nbsp;&nbsp;&nbsp;Net gains from sales of loans | 24885 | 17918 | 13217 |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on investment securities | (22324) | (22575) | (1052) |
| &nbsp;&nbsp;&nbsp;Other | 23234 | 27421 | 22320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | 257438 | 223568 | 212422 |
| **Noninterest expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and employee benefits | 315885 | 304389 | 292731 |
| &nbsp;&nbsp;&nbsp;Net occupancy | 24182 | 23050 | 22990 |
| &nbsp;&nbsp;&nbsp;Furniture and equipment | 14776 | 14427 | 13543 |
| &nbsp;&nbsp;&nbsp;Data processing | 37835 | 35178 | 35852 |
| &nbsp;&nbsp;&nbsp;Marketing | 10170 | 9026 | 9647 |
| &nbsp;&nbsp;&nbsp;Communication | 3013 | 3229 | 2729 |
| &nbsp;&nbsp;&nbsp;Professional services | 14833 | 14087 | 9926 |
| &nbsp;&nbsp;&nbsp;Amortization of tax credit investments | 1135 | 14396 | 1295 |
| &nbsp;&nbsp;&nbsp;State intangible tax | 5604 | 2524 | 3914 |
| &nbsp;&nbsp;&nbsp;FDIC assessments | 11204 | 11209 | 11948 |
| &nbsp;&nbsp;&nbsp;Intangible amortization | 11003 | 9487 | 10402 |
| &nbsp;&nbsp;&nbsp;Leasing business expense | 53705 | 44317 | 32500 |
| &nbsp;&nbsp;&nbsp;Other | 37202 | 34276 | 31012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expenses** | 540547 | 519595 | 478489 |
| Income before income taxes | 321270 | 268324 | 318596 |
| Income tax expense | 65665 | 39494 | 62733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $255605 | $228830 | $255863 |
| **Earnings per common share** |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $2.68 | $2.42 | $2.72 |
| &nbsp;&nbsp;&nbsp;Diluted | $2.66 | $2.40 | $2.69 |
| **Average common shares outstanding - basic** | 95284550 | 94404617 | 93938772 |
| **Average common shares outstanding - diluted** | 96157964 | 95405719 | 95096067 |

---

See Notes to Consolidated Financial Statements

**First Financial Bancorp** 2025 Annual Report **49**

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**Consolidated Statements of Comprehensive Income (Loss)**

---

| | | | |
|:---|:---|:---|:---|
| | Years ended December 31, | Years ended December 31, | Years ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Net income | $255605 | $228830 | $255863 |
| Other comprehensive income (loss), net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on debt securities arising during the period | 85540 | 17879 | 43967 |
| &nbsp;&nbsp;&nbsp;Impairment charge on debt securities arising during the period | 7051 | 7565 | 0 |
| &nbsp;&nbsp;&nbsp;Change in retirement obligation | 5411 | 637 | 906 |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on derivatives | 1270 | (4931) | 3755 |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on foreign currency exchange | 585 | (1130) | 216 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) | 99857 | 20020 | 48844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Comprehensive income (loss)** | $355462 | $248850 | $304707 |

---

See Notes to Consolidated Financial Statements

**First Financial Bancorp** 2025 Annual Report **50**

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**Consolidated Statements of Changes in Shareholders' Equity**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | Accumulated | | | |
| | Common | Common | | other | | | |
| | stock | stock | Retained | comprehensive | Treasury stock | Treasury stock | |
| *(Dollars in thousands, except share amounts)* | shares | amount | earnings | income (loss) | Shares | Amount | Total |
| Balance at January 1, 2023 | 104281794 | $1634605 | $968237 | $(358663) | (9390695) | $(202806) | $2041373 |
| Net income |  |  | 255863 |  |  |  | 255863 |
| Other comprehensive income (loss) |  |  |  | 48844 |  |  | 48844 |
| Cash dividends declared: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common stock at $0.92 per share |  |  | (87382) |  |  |  | (87382) |
| Exercise of stock options, net of shares purchased |  | (57) |  |  | 4855 | 105 | 48 |
| Restricted stock awards, net of forfeitures |  | (10474) |  |  | 245290 | 4804 | (5670) |
| Share-based compensation expense |  | 14898 |  |  |  |  | 14898 |
| &nbsp;&nbsp;&nbsp;Balance at December 31, 2023 | 104281794 | 1638972 | 1136718 | (309819) | (9140550) | (197897) | 2267974 |
| Impact of cumulative effect of adoption of new accounting principles-ASU 2023-02 |  |  | 599 |  |  |  | 599 |
| Net income |  |  | 228830 |  |  |  | 228830 |
| Other comprehensive income (loss) |  |  |  | 20020 |  |  | 20020 |
| Cash dividends declared: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common stock at $0.94 per share |  |  | (89818) |  |  |  | (89818) |
| Restricted stock awards, net of forfeitures |  | (12610) |  |  | 353596 | 7353 | (5257) |
| Share-based compensation expense |  | 15693 |  |  |  |  | 15693 |
| &nbsp;&nbsp;&nbsp;Balance at December 31, 2024 | 104281794 | 1642055 | 1276329 | (289799) | (8786954) | (190544) | 2438041 |
| Net income |  |  | 255605 |  |  |  | 255605 |
| Other comprehensive income (loss) |  |  |  | 99857 |  |  | 99857 |
| Cash dividends declared: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common stock at $0.98 per share |  |  | (94648) |  |  |  | (94648) |
| Common stock issued in connection with business combinations |  | 4364 |  |  | 2753094 | 60086 | 64450 |
| Restricted stock awards, net of forfeitures |  | (14391) |  |  | 273792 | 4712 | (9679) |
| Share-based compensation expense |  | 15590 |  |  |  |  | 15590 |
| &nbsp;&nbsp;&nbsp;**Balance at December 31, 2025** | 104281794 | $1647618 | $1437286 | $(189942) | (5760068) | $(125746) | $2769216 |

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See Notes to Consolidated Financial Statements

**First Financial Bancorp** 2025 Annual Report **51**

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**Consolidated Statements of Cash Flows**

---

| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| **Operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $255605 | $228830 | $255863 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used in) operating activities: | &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 37667 | 47659 | 43107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 31830 | 30323 | 30026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 15590 | 15693 | 14898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension expense (income) | 8772 | 6078 | 3515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization (accretion) on investment securities | (3264) | 3066 | 7190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (gain) loss on investments securities | 22324 | 22575 | 1052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originations of loans held for sale | (588444) | (420946) | (294037) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (gains) losses on sales of loans held for sale | (24885) | (17918) | (13217) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of loans held for sale | 609558 | 434896 | 302609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 18907 | 21202 | 13365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating leases | 7993 | 8095 | 7773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of operating lease liability | (8520) | (8441) | (7819) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank owned life insurance income | (5690) | (4220) | (5033) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in interest receivable | 2540 | 4958 | (9567) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in interest payable | (5470) | (8044) | 40305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in other assets | (43870) | (172489) | 159446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in other liabilities | 7218 | 70839 | (62507) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 337861 | 262156 | 486969 |
| **Investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of investment securities available-for-sale | 752278 | 352464 | 92187 |
| &nbsp;&nbsp;&nbsp;Proceeds from calls, paydowns and maturities of securities available-for-sale | 655467 | 482587 | 440815 |
| &nbsp;&nbsp;&nbsp;Purchases of securities available-for-sale | (1794387) | (981290) | (96745) |
| &nbsp;&nbsp;&nbsp;Proceeds from calls, paydowns and maturities of securities held-to-maturity | 18674 | 3621 | 3902 |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of other investment securities | 19810 | 11559 | 0 |
| &nbsp;&nbsp;&nbsp;Proceeds from calls, paydowns and maturities of other securities | 52294 | 54655 | 29713 |
| &nbsp;&nbsp;&nbsp;Purchases of other investment securities | (74657) | (48291) | (16292) |
| &nbsp;&nbsp;&nbsp;Net decrease (increase) in interest-bearing deposits with other banks | 132890 | 62732 | (404778) |
| &nbsp;&nbsp;&nbsp;Net decrease (increase) in loans and leases | (97881) | (769221) | (665861) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of other real estate owned | 166 | 136 | 288 |
| &nbsp;&nbsp;&nbsp;Purchases of premises and equipment | (20757) | (21075) | (24135) |
| &nbsp;&nbsp;&nbsp;Net change in operating leases | (4884) | (55905) | (61476) |
| &nbsp;&nbsp;&nbsp;Life insurance premium payments | (175) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Life insurance death benefits | 1624 | 4880 | 4652 |
| &nbsp;&nbsp;&nbsp;Net cash acquired (paid) from business combinations | (187186) | (96887) | (3535) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (546724) | (1000035) | (701265) |
| **Financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net (decrease) increase in total deposits | 302180 | 968341 | 659620 |
| &nbsp;&nbsp;&nbsp;Net (decrease) increase in short-term borrowings | (158550) | (182362) | (349342) |
| &nbsp;&nbsp;&nbsp;Proceeds from (repayments of) long-term borrowings | (131487) | 2643 | (3313) |
| &nbsp;&nbsp;Proceeds from issuance of long-term borrowings | 300000 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Payments for debt issuance costs | (4339) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Cash dividends paid on common stock | (94646) | (89544) | (87159) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 0 | 0 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 213158 | 699078 | 219854 |
| Cash and due from banks |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net (decrease) increase in Cash and due from banks** | 4295 | (38801) | 5558 |
| Cash and due from banks at beginning of year | 174258 | 213059 | 207501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash and due from banks at end of year** | $178553 | $174258 | $213059 |
|  | *(continued on next page)* | *(continued on next page)* | *(continued on next page)* |

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**52 First Financial Bancorp** 2025 Annual Report

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---

| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| **Supplemental disclosures** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $364965 | $398129 | $234929 |
| &nbsp;&nbsp;&nbsp;Income taxes paid | $9213 | $27523 | $10076 |
| &nbsp;&nbsp;&nbsp;Acquisition of other real estate owned through foreclosure | $333 | $119 | $387 |
| &nbsp;&nbsp;&nbsp;Issuance of restricted stock awards | $14854 | $13945 | $12503 |
| &nbsp;&nbsp;&nbsp;Common stock issued in acquisitions | $64450 | $0 | $0 |
| **Supplemental schedule for investing activities** |  |  |  |
| <u>Business combinations</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets acquired, net of purchase consideration | $1804277 | $914 | $(3420) |
| &nbsp;&nbsp;&nbsp;Liabilities assumed | 1896145 | 2702 | 941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | $91868 | $1788 | $4361 |

---

See Notes to Consolidated Financial Statements.

**First Financial Bancorp** 2025 Annual Report **53**

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**Notes to Consolidated Financial Statements**

**1. Summary of Significant Accounting Policies**

**Basis of presentation.** The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications of prior years' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings.

**Use of estimates.** The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Actual realized amounts could differ materially from those estimates.

**Cash and due from banks.** Cash and due from banks consist of currency, coin and cash items due from banks. Cash items due from banks include noninterest-bearing balances that are on deposit at other depository institutions.

**Investment securities.** First Financial classifies debt securities into three categories: HTM, trading and AFS. Management classifies investment securities into the appropriate category at the time of purchase and re-evaluates that classification as deemed appropriate.

Investment securities are classified as HTM when First Financial has the positive intent and ability to hold the securities to maturity. HTM securities are recorded at amortized cost.

Investment securities classified as trading are held principally for resale in the near-term and are recorded at fair value. Fair value is determined using quoted market prices. Gains or losses on trading securities, both realized and unrealized, are reported in noninterest income.

Investment securities not classified as either HTM or trading are classified as AFS. AFS securities are recorded at fair value, with the unrealized gains and losses, net of tax, reported as a separate component of accumulated other comprehensive income (loss) in shareholders' equity.

The amortized cost of investment securities classified as either HTM or AFS on purchased callable debt securities is adjusted for amortization of premiums to the earliest call date if the call feature meets certain criteria. Otherwise, premiums are amortized to maturity similar to discounts on callable debt securities, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion are considered an adjustment to the yield on the security and included in interest income from investments. Interest and dividends are also included in interest income from investment securities in the Consolidated Statements of Income. Realized gains and losses are based on the amortized cost of the security sold using the specific identification method.

**Other investments.** Other investments primarily include holdings in FRB and FHLB stock, which are both carried at cost. Additionally, other investments include certain equity securities, which are recorded at cost. These equity securities do not have a readily determinable fair value and are therefore monitored for impairment.

**Loans held for sale.** Loans held for sale consist of residential real estate loans newly originated for the purpose of sale to third parties, and in certain circumstances, loans previously originated that have been specifically identified by management for sale based on predetermined criteria. Loans held for sale are carried at fair value. Any subsequent change in the carrying value of transferred loans, not to exceed original cost, is recorded in the Consolidated Statements of Income. First Financial sells loans with servicing retained or released depending on pricing and market conditions.

**Loans and leases.** Loans and leases for which First Financial has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified in the Consolidated Balance Sheets as loans and leases. Loans and leases are carried at the principal amount outstanding, net of unamortized deferred loan origination fees and costs, and net of unearned income. Loan origination and commitment fees received, as well as certain direct loan origination costs paid, are deferred, and the net amount is amortized as an adjustment to the related loan's yield.

**54 First Financial Bancorp** 2025 Annual Report

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Interest income on loans and leases is recorded on an accrual basis. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued, but unpaid interest is reversed. Any payments received while a loan is classified as nonaccrual are applied as a reduction to the carrying value of the loan. A loan may return to accrual status if collection of future principal and interest payments is no longer doubtful.

**PCD Loans.** The Company has purchased loans, some of which experienced more than insignificant credit deterioration since origination. Acquired loans rated special mention or worse are designated by First Financial as PCD loans. PCD loans are recorded at the amount paid and an ACL is determined using the same methodology as other loans held for investment. The initial ACL determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to ACL are recorded through provision expense.

**Allowance for credit losses - held-to-maturity securities.** Management measures expected credit losses on HTM debt securities on a collective basis by security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the HTM portfolio into the following major security types: Mortgage-backed, CMO, Obligations of state and other political subdivisions and Other.

Nearly all of the HTM securities held by the Company are issued by U.S. government-sponsored enterprises. These securities carry either the explicit or implicit guarantee of the U.S. government, are widely recognized as "risk free" and have a long history of no credit losses. The remainder of the Company's HTM securities are non-agency collateralized mortgage obligations and obligations of state and other political subdivisions which currently carry ratings no lower than A+.

Accrued interest receivable on HTM debt securities, which totaled $0.2 million at both December 31, 2025 and December 31, 2024, is excluded by policy election from the estimate of credit losses.

**Allowance for credit losses - available-for-sale securities.** All AFS securities with unrealized losses are reviewed quarterly to determine if any impairment exists, requiring a write-down to fair value. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income.

For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for credit loss expense.

Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on AFS debt securities, which totaled $17.4 million and $14.1 million as of December 31, 2025 and 2024, respectively, is excluded from the estimate of credit losses.

**Allowance for credit losses - loans and leases.** The ACL is a valuation account that is deducted from the loans to present the net amount expected to be collected. Management's determination of the adequacy of the ACL is based on an assessment of the expected credit losses on loan and leases over their expected life. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. Loans are charged off when, in management's opinion, it is unlikely to collect the principal amount owed in full, either through payments from the borrower or a guarantor or from the liquidation of collateral. Cumulative recovery payments credited for any loan do not exceed the aggregate of amounts previously charged-off. Any interest that is accrued but not collected is reversed against interest income when a loan is placed on nonaccrual status, which typically occurs prior to charging off all, or a portion, of a loan. The Company made the policy election to exclude accrued interest receivable on loans and leases from the estimate of credit losses.

**First Financial Bancorp** 2025 Annual Report **55**

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**Notes to Consolidated Financial Statements**

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered therein. These adjustments are commonly known as the Qualitative Framework.

First Financial quantitatively models expected credit loss using PD, LGD and EAD over the R&S forecast period, reversion and post-reversion periods.

Utilizing third-party software, First Financial forecasts PD by using a parameterized transition matrix approach. Average transition matrices are calculated over the TTC period, which was defined as the period from December 2007 to December 2022. TTC transition matrices are adjusted under forward-looking macroeconomic expectations to obtain R&S forecasts.

First Financial is not required to develop forecasts over the full contractual term of the financial asset or group of financial assets. Rather, for periods beyond which the entity is able to make or obtain R&S forecasts of expected credit losses, the Company reverts in a straight line manner over a one year period to an average TTC loss level that is reflective of the prepayment adjusted contractual term of the financial asset or group of financial assets. First Financial elected a two year R&S period which is forecasted using econometric data sourced from Moody's, an industry-leading independent third party.

FFB utilizes a non-parametric loss curve approach embedded within a third-party software for estimating LGD. The PD multiplied by LGD produces an expected loss rate that, when calculating the ACL, is applied to contractual loan cash flows, adjusted for expected future rates of principal prepayments.

The Company adjusts its quantitative model for certain qualitative factors to reflect the extent to which management expects current conditions and R&S forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The Qualitative Framework reflects changes related to relevant data, such as changes in asset quality trends, portfolio growth and composition, national and local economic factors, credit policy and administration and other factors not considered in the base quantitative model.

Loans that do not share risk characteristics are evaluated on an individual basis. First Financial will typically evaluate on an individual basis any nonaccrual loans greater than $250,000. When management determines that foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of underlying collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs, as applicable. For loans evaluated on an individual basis that are not determined to be collateral dependent, a discounted cash flow analysis is performed to determine expected credit losses.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Credit card receivables do not have stated maturities. In determining the estimated life of a credit card receivable, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the credit card balance.

Significant downturns in circumstances relating to loan quality and economic conditions could result in a requirement for additional allowance. Likewise, an upturn in loan quality and improved economic conditions may allow a reduction in the required allowance. In either instance, unanticipated changes could have a significant impact on results of operations.

**Allowance for credit losses - acquired loans.** Under ASU 2025-08, all acquired loans (including those that would have previously been considered PCD or purchased performing) are accounted for as purchased financial assets. At acquisition, an ACL is established for each acquired loan, reflecting management's estimate of expected credit losses over the asset's remaining life, consistent with the methodology applied to originated loans under CECL. The initial amortized cost basis of the acquired loans is recorded at the purchase price plus any ACL recognized at acquisition. See Note 2 - Recently adopted Accounting Standards for additional information on the Company's early adoption of ASU 2025-08 as well as its impact on the Consolidated Financial Statements.

**56 First Financial Bancorp** 2025 Annual Report

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**Allowance for credit losses - unfunded commitments**. First Financial estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases. Adjustments to the reserve for unfunded commitments are recorded in Provision for credit losses - unfunded commitments in the Consolidated Statements of Income. The reserve for unfunded commitments is included in Accrued interest and other liabilities on the Consolidated Balance Sheets.

**Legal Contingencies.** First Financial and its subsidiaries may be parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation, and the timing of ultimate resolution are inherently difficult to predict and significant judgment may be required in the determination of both the probability of loss and whether the amount of the loss is reasonably estimable. First Financial's estimates are subjective and are based on the status of legal and regulatory proceedings, the merit of the Company's defenses and consultation with internal and external legal counsel. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. This accrual, when required, is included in other liabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circumstances. Legal expenses are recorded in Professional services expense in the Consolidated Statements of Income.

**Premises and equipment.** Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are principally computed on the straight-line method over the estimated useful lives of the assets. Useful lives generally range from 10 to 40 years for building and building improvements; 3 to 10 years for furniture, fixtures and equipment; and 3 to 5 years for software, hardware and data handling equipment. Land improvements are depreciated over 20 years and leasehold improvements are depreciated over the lesser of the term of the respective lease or the useful life of the asset. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Maintenance and repairs are expensed as incurred.

**Leases - Lessee.** Leases where First Financial is considered the lessee are classified as operating or finance leases at the lease commencement date. Substantially all of the contracts where First Financial is a lessee are for real estate property for branches, ATM locations and office space.

Substantially all of the Company's leases are classified as operating leases. Under Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as an ROU asset and a corresponding lease liability. First Financial's operating leases are generally for periods of 5 to 30 years with various renewal options.

The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. At lease inception, the Company determines the lease term by considering the noncancelable lease term and all optional renewal periods that the Company is reasonably certain to renew. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, First Financial utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments, such as common area maintenance charges, real estate

taxes and insurance, are not included in the measurement of the lease liability since they are generally able to be segregated and are not dependent on an index or a rate. These payments are recognized in the Consolidated Income Statements when incurred.

First Financial does not have any material sub-lease agreements.

Lease expense for operating leases where First Financial is the lessee is included in Occupancy expense on the Company's Consolidated Statements of Income.

First Financial has elected not to recognize short-term leases (terms of one year or less) as lease liabilities and ROU assets; related expenses are recognized on a straight-line basis over the lease term.

**First Financial Bancorp** 2025 Annual Report **57**

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**Notes to Consolidated Financial Statements**

**Operating Leases.** First Financial provides financing for various types of equipment through a variety of leasing arrangements. Operating leases are carried at cost less accumulated depreciation in the Consolidated Balance Sheets. Operating lease equipment is depreciated to its estimated residual value using the straight-line method over the lease term or estimated useful life of the asset. The Company recognizes income over the term of the lease using the constant effective yield method. Lease residuals are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Depreciation expense related to operating lease equipment is recorded in Leasing business expense on the Consolidated Statements of Income.

**Bank-owned life insurance.** First Financial purchases and is the owner and beneficiary of life insurance policies on the lives of certain employees. The Bank invests in these policies to provide an efficient form of funding for long-term retirement and other employee benefits costs. The policies are included within Accrued interest and other assets in the Consolidated Balance Sheets at each policy's respective cash surrender value. Changes in the cash surrender value of these policies are recorded in Other noninterest income in the Consolidated Statements of Income.

**Goodwill.** When accounting for business combinations, the net assets of entities acquired by First Financial are recorded at their estimated fair value at the date of acquisition. The excess cost of the acquisition over the fair value of net assets acquired is recorded as goodwill. Goodwill and other intangible assets deemed to have indefinite lives are not amortized, but are subject to annual impairment tests. The Company is required to evaluate goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. First Financial performs its annual impairment test effective October 1, absent events or changes in circumstances that indicate the carrying value of goodwill may not be recoverable.

The Company's goodwill is accounted for in a single reporting unit representing the consolidated entity. In testing goodwill for impairment, GAAP permits First Financial to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, First Financial evaluates events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the Company's overall financial performance, the performance of the Company's common stock, the key financial performance metrics of the Bancorp's reporting unit and events affecting the reporting unit to determine if it is not more likely than not that the fair value of a reporting unit is less than its carrying amount.

If a quantitative impairment test is required or the decision to bypass the qualitative assessment is elected, the Bancorp performs the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, including goodwill. When required, management's quantitative impairment analysis includes both an income and a market approach. The income approach utilizes a discounted cash flow model and the market approach utilizes a market multiple methodology as well as a comparable transaction methodology. These valuation methodologies utilize key assumptions that include forecasts of revenues and expenses derived from internal management projections, changes in working capital estimates, a company specific discount rate derived from a rate build up approach, externally sourced bank peer group market multiples and an externally sourced bank peer group change in control premium, all of which are highly subjective and require significant judgment.

Changes in these key assumptions, as well as downturns in economic or business conditions, could materially affect our estimate of the reporting unit fair value and could affect our conclusion regarding the existence of potential impairment. In both 2025 and 2024, management evaluated goodwill for impairment using a qualitative analysis.

**Other intangible assets.** Other intangible assets consist primarily of core deposit intangibles, customer lists, MSR and other miscellaneous intangibles.

CDI represent the estimated value of acquired customer deposit relationships. CDI are recorded at fair value at the date of acquisition and are based on a discounted cash flow methodology that gives appropriate consideration to expected customer attrition rates, cost of the deposit base, reserve requirements and the net maintenance cost attributable to customer deposits. Core deposit intangibles are amortized on an accelerated basis over their estimated useful lives.

First Financial recorded a customer list intangible asset in conjunction with the Agile, Bannockburn, and Summit mergers to account for the obligation or advantage on the part of either the Company or the customer to continue pre-existing relationships subsequent to the mergers. Customer list intangible assets are amortized on a straight-line basis over their estimated useful lives.

MSR are created when First Financial retains servicing responsibilities on fixed and adjustable-rate residential mortgage loans sold into the secondary market. MSR represent the value of servicing fees expected to be received over the term of the loans.

**58 First Financial Bancorp** 2025 Annual Report

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First Financial receives servicing fees based on a percentage of the outstanding balance. When the loans were sold, First Financial provided certain standard representations and warranties; however, the investors have no recourse to the Company's other assets for failure of debtors to pay when due.

The fair value of MSR is estimated by calculating the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions. The expected and actual rates of mortgage loan prepayments are the most significant factors driving the value of mortgage servicing rights. Increases in mortgage loan prepayments reduce estimated future net servicing cash flows because the life of the underlying loan is reduced. In determining the fair value of the mortgage servicing rights, mortgage interest rates, which are used to determine prepayment rates and discount rates, are held constant over the estimated life of the portfolio. Mortgage servicing rights are reported in other assets and are amortized against noninterest income offsetting the actual servicing income of the underlying mortgage loans.

MSR are regularly evaluated for impairment based on the estimated fair value of those rights. The MSR are stratified by certain risk characteristics, primarily loan term and note rate. If impairment exists, a valuation allowance is established through a charge to income equal to the amount by which the carrying value exceeds the fair value.

Other miscellaneous intangible assets also include purchase commissions, non-compete agreements and trade name intangibles.

**Other real estate owned.** OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, or other resolution activity that results in partial or total satisfaction of problem loans. OREO properties are recorded at fair value, less estimated disposal costs (net realizable value) establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Losses arising at the time of acquisition of such properties are charged against the ACL. Management performs periodic valuations to assess the adequacy of recorded OREO balances and subsequent changes in the carrying value of OREO properties are recorded in the Consolidated Statements of Income. Improvements to OREO properties may be capitalized if the improvements contribute to the overall value of the property, but may not be capitalized in excess of the net realizable value of the property. When management disposes of an OREO property, any gains or losses realized at the time of disposal are reflected in the Consolidated Statements of Income.

**Affordable housing projects.** First Financial has investments in certain qualified affordable housing projects. These projects are indirect federal subsidies that provide tax incentives to encourage investment in the development, acquisition and rehabilitation of affordable rental housing, and allow investors to claim tax credits and other tax benefits (such as deductions from taxable income for operating losses) on their federal income tax returns. The principal risk associated with qualified affordable housing investments is the potential for noncompliance with the tax code requirements, such as failure to rent properties to qualified tenants, resulting in unavailability or recapture of the tax credits and other tax benefits. Investments in affordable housing projects are included in Accrued interest and other assets in the Consolidated Balance Sheets while any unfunded commitment is recorded with Accrued interest and other liabilities. These investments are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other benefits received and recognized as a component of Income tax expense in the Consolidated Statements of Income.

**Investments in historic tax credits.** First Financial has noncontrolling financial investments in private investment funds and partnerships that finance the rehabilitation and re-use of historic buildings. These unconsolidated investments may generate a return through the realization of federal and state income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investments over a period of time. Effective January 1, 2024, First Financial adopted ASU 2023-02 using the modified retrospective basis which expanded the scope of the proportional amortization method to equity investments beyond LIHTC. First Financial has made an accounting policy election to apply PAM to the HTC tax credit programs. First Financial analyzed each investment individually under the scope criteria to determine if PAM applies. First Financial determined that it was eligible to apply PAM to certain HTC investments, however not every HTC investment qualified under the existing guidance. Therefore, investments in historic tax credits were accounted for under both the PAM and equity method of accounting in both 2025 and 2024. The Company's recorded investment in these entities is carried in Accrued interest and other assets on the Consolidated Balance Sheets with any unfunded commitment recorded in Accrued interest and other liabilities. Impairment of these investments is recorded in Other noninterest expense, while the tax credits and other net tax benefits received are recognized as a component of income tax expense in the Consolidated Statements of Income.

**First Financial Bancorp** 2025 Annual Report **59**

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**Notes to Consolidated Financial Statements**

**Investments in renewable energy credits.** First Financial has investments in renewable energy projects where it has noncontrolling interest which is not consolidated. This investment may generate a return through the realization of federal and state income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investments over a period of time. As with HTC investments, ASU 2023-02 was adopted effective January 1, 2024. Each investment in renewable energy tax credits was evaluated individually under the scope criteria to determine if PAM applied. At the time of adoption, First Financial's renewable energy tax credits were not eligible for PAM. Therefore, they are accounted for under the equity method of accounting and are included in Accrued interest and other assets on the Consolidated Balance Sheets with any unfunded commitment recorded in Accrued interest and other liabilities. Impairment of these investments is recorded in Other noninterest expense, while the tax credits and other net tax benefits received are recognized as a component of income tax expense in the Consolidated Statements of Income.

**Deposits.** Deposits generally include the unpaid balance of cash or its equivalent received or held by the Bank for its commercial and consumer customers. Deposits include both interest-bearing and noninterest-bearing balances. Interest expense incurred on interest-bearing deposits is recognized in accordance with applicable GAAP for these liabilities and is included in Interest expense in the Consolidated Statements of Income.

**Income taxes.** First Financial and its subsidiaries file a consolidated federal income tax return. Each subsidiary provides for income taxes on a separate return basis, and remits to First Financial amounts determined to be currently payable.

First Financial evaluates and assesses the relative risks and appropriate tax treatment of transactions after considering statutes, regulations, judicial precedent and other information, and maintains tax accruals consistent with its evaluation of these relative risks. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance that impact the relative risks of tax positions. These changes, when they occur, can affect deferred taxes and accrued taxes as well as the current period's income tax expense and can be material to the Company's operating results.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Interest and penalties on income tax assessments or income tax refunds are recorded in Other noninterest expense in the Consolidated Statements of Income.

In establishing a provision for income tax expense, we must make judgments and interpretations about the application of complex tax laws as well as make estimates about when in the future certain items will affect taxable income. First Financial regularly reviews its tax positions and establishes reserves for income tax-related uncertainties based on estimates of whether it is more likely than not that the tax uncertainty would be sustained upon challenge by the appropriate tax authorities which would then result in additional taxes, penalties and interest due. Reserves for uncertain tax positions, if any, are included in income tax expense in the Consolidated Financial Statements.

**Pension.** First Financial sponsors a non-contributory defined-benefit pension plan covering substantially all employees. Accounting for the pension plan involves estimates regarding future plan obligations and investment returns on plan assets. Significant assumptions used in the pension plan include the discount rate, expected return on plan assets and the rate of compensation increase. First Financial determines the discount rate assumption using published corporate bond indices and the projected cash flows of the pension plan. First Financial also utilizes external surveys for industry comparisons to assess the discount rate for reasonableness. The expected long-term return on plan assets is determined based on the composition of plan assets, actual returns and economic forecasts, while the rate of compensation increase is compared to historical increases for plan participants. Changes in these assumptions can have a material impact on the amount of First Financial's future pension obligations, the funded status of the plan and the Company's operating results.

**Derivative instruments.** First Financial accounts for its derivative financial instruments in accordance with FASB ASC Topic 815, Derivatives and Hedging. FASB ASC Topic 815 requires all derivative instruments to be carried at fair value on the balance sheet.

The accounting for changes in the fair value of derivatives is based on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.

**60 First Financial Bancorp** 2025 Annual Report

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*Interest rate client derivatives* - First Financial utilizes matched interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets. Upon entering into an interest rate swap with a borrower, the Bank simultaneously enters into an offsetting swap agreement with an institutional counterparty, with substantially matching terms. These matched interest rate swap agreements generally involve the receipt by First Financial of floating rate amounts from the counterparties in exchange for payments to these counterparties by First Financial of fixed rate amounts received from commercial borrowers over the life of the agreements.

First Financial's matched interest rate swaps qualify as derivatives, but are not designated as hedging instruments. The net interest receivable or payable on matched interest rate swaps is accrued and recognized as an adjustment to interest income. The fair values of client derivatives are included within Accrued interest and other assets and Accrued interest and other liabilities in the Consolidated Balance Sheets.

First Financial monitors its derivative credit exposure to borrowers by monitoring the creditworthiness of the related loan

customers through the Company's normal credit review processes. Additionally, the Company monitors derivative credit risk exposure related to problem loans through the its ACL committee. First Financial considers the fair value of a derivative instrument to be part of the carrying value of the related loan for these purposes as the borrower is contractually obligated to pay First Financial this amount in the event the derivative contract is terminated.

*Foreign exchange contracts* - First Financial enters into foreign exchange derivative contracts for the benefit of commercial customers to hedge their exposure to foreign currency fluctuations. Similar to the hedging of interest rate risk from interest rate derivative contracts, First Financial also enters into foreign exchange contracts with major financial institutions to economically hedge a substantial portion of the exposure from client driven foreign exchange activity. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Foreign exchange income in the Consolidated Statements of Income. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken when providing this service to customers. These controls include a determination of currency volatility and credit equivalent exposure on these contracts.

*Commodity contracts -* First Financial enters into financially settled commodity derivative contracts for the benefit of commercial customers to hedge their exposure to various commodity price fluctuations. Similar to the hedging of interest rate risk from interest rate client derivative and foreign exchange contracts, First Financial also enters into commodity contracts with major financial institutions to economically hedge a substantial portion of the exposure from client driven commodity derivative activity. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Derivative income in the Consolidated Statements of Income. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken when providing this service to customers. These controls include monitoring of commodity volatility and credit exposure on these contracts. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes.

*Cash flow hedges* - First Financial enters into interest rate collars and floors, which are designated as cash flow hedges. These cash flow hedges are utilized to mitigate interest rate risk on variable-rate commercial loan pools. Changes in the fair value of cash flow hedges included in the assessment of hedge effectiveness are recorded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings. Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Consolidated Statements of Income.

The structure of the interest rate collars is such that First Financial pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, First Financial receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index is between the cap and floor rates.

*Credit derivatives* - In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial either assumes or sells a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will either make a payment to or receive a payment from the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract with the counterparty. The fair value of these agreements is recorded in the Consolidated Balance Sheets in Accrued interest and other liabilities.

*Mortgage derivatives* - First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure an IRLC with First Financial and the loan is intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party

**First Financial Bancorp** 2025 Annual Report **61**

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**Notes to Consolidated Financial Statements**

investors in order to hedge against the effect of changes in interest rates impacting IRLCs and Loans held for sale. The fair value of these agreements is recorded in the Consolidated Balance Sheets in Accrued interest and other assets.

**Stock-based compensation.** First Financial grants stock-based awards, including restricted stock awards and options to purchase the Company's common stock. Restricted stock award grants are for a fixed number of shares to employees and directors with an exercise price equal to the fair value of the shares at the date of grant. Stock-based compensation expense is recognized in the Consolidated Statements of Income on a straight-line basis over the vesting period. As compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from exercise. At the time stock-based awards are exercised, canceled or expire, First Financial may be required to recognize an adjustment to tax expense.

**Earnings per share.** Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding, unvested shares and dilutive common stock equivalents outstanding during the period. Common stock equivalents, which consist of common stock issuable under the assumed exercise of stock options granted under First Financial's stock-based compensation plans and the assumed conversion of common stock warrants, are calculated using the treasury stock method.

**Segments and related information.** While the Company monitors the operating results of its six lines of business, operations are managed and financial performance is evaluated on a consolidated basis. Accordingly, and consistent with prior years, all of the Company's operations are considered by management to be aggregated in one reportable operating segment.

**2. Accounting Standards Recently Adopted or Issued** 

**Standards Adopted in 2025**

In December, 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures.* These amendments require public business entities on an annual basis to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a quantitative threshold. Additionally, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts are equal to or greater than 5% of total income taxes paid (net of refunds received). The amendments in this ASU are effective for annual periods beginning after December 15, 2024. The Company adopted ASU 2023-09 retrospectively in the current period. The adoption of this standard resulted in additional disclosures in the Company's Consolidated Financial Statements, but it did not materially impact the Company's results of operations.

In December, 2025, the FASB issued ASU No. 2025-08, *Financial Instruments—Credit Losses (Topic 326): Purchased Loans,* which allows entities to apply the gross-up approach in ASC 326 to all purchased seasoned loans, not just loans classified as PCD. The gross-up approach requires an entity to record an ACL at the acquisition date offset by an addition to the amortized cost basis of the asset.

Prior to the issuance of this ASU, the ACL for non-PCD assets was separately recorded through provision expense at the acquisition date. Since acquired financial assets are initially recognized at fair value, which would include both interest and credit valuation adjustments, this effectively resulted in a "double count" of the expected credit loss for non-PCD assets on their acquisition date, which was captured as a Day 1 provision expense on the financial statements.

The new standard is effective for fiscal years beginning after December 15, 2026; however, First Financial elected to early adopt the new standard in the fourth quarter of 2025 with the initial application utilized for the Westfield acquisition. As such, the Company recorded a $23.7 million increase to the ACL with a corresponding increase to Goodwill to account for the expected losses on loans acquired from Westfield. Absent early adoption, First Financial would have recorded approximately

**62 First Financial Bancorp** 2025 Annual Report

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$3.0 million of reserves on PCD balances with a corresponding offset to Goodwill; the remaining $20.6 million of expected credit losses on non-PCD balances would have been recognized through provision expense.

**Standards Adopted in 2024**

In March, 2023, the FASB issued ASU No. 2023-02, *Investments—Equity Method and Joint Ventures (Topic 323): Accounting*

*for Investments in Tax Credit Structures Using the Proportional Amortization Method*, that was intended to improve the accounting and disclosures for investments in tax credit structures. The ASU allowed reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, if certain conditions are met, regardless of the program giving rise to the related income tax credits.

The amendments became effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. First Financial adopted this standard on a modified retrospective basis, resulting in amended disclosures in the

Company's Consolidated Financial Statements, but not materially impacting the Company's results of operations. The Company recorded a net increase to retained earnings of $0.6 million as of January 1, 2024 for the cumulative effect of adopting this guidance.

In November 2023, the FASB issued ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280. The amendments in ASU 2023-07 became effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The adoption of this standard resulted in amended disclosures in the Company's Consolidated Financial Statements, but did not impact the Company's results of operations.

**Standards Issued But Not Yet Adopted**

In September, 2025, the FASB issued ASU 2025-06, *Intangibles – Goodwill and Other -- Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.* The final rule removes all references to project stages throughout ASC 350-40 and clarifies that costs may begin to be capitalized once management has authorized the project and it is probable that the project will be completed and the software will be used to perform the function intended. The guidance specifies that the property, plant and equipment disclosure requirements under ASC 360-10 apply to all capitalized software costs accounted for under ASC 350-40, regardless of how the costs are presented in the financial statements. Entities will be required to disclose the capitalized internal-use software balance and accumulated amortization at the balance sheet date, the amortization for the period and a general description of the method used in computing amortization. The amendments in this ASU are effective for annual periods beginning after December 15, 2027 and interim periods within those years. The adoption of this standard will result in additional disclosures in the Company's Consolidated Financial Statements, but it is not expected to materially impact the Company's results of operations.

**3. Restrictions on Cash and Dividends**

As of December 31, 2025 and 2024, First Financial had $10.2 million and $15.0 million, respectively, in cash restricted for withdrawal and usage due to the centrally cleared derivative initial margin requirement. This amount is included in Cash and due from banks on the Consolidated Balance Sheets. Additionally, First Financial had no required reserves with the FRB as of December 31, 2025 and 2024.

Dividends paid by First Financial to its shareholders are principally funded through dividends paid to the Company by its subsidiaries; however, certain restrictions exist regarding the ability of the Bank to transfer funds to First Financial in the form of cash dividends, loans or advances. The approval of the Federal Reserve Board and the ODFI is required for the Bank to pay dividends in excess of the regulatory limit, which is equal to the net income of the current year through the dividend date combined with the Bank's retained net income from the two preceding years. As of December 31, 2025, First Financial's subsidiaries had retained earnings of $993.9 million, of which $193.6 million was available for distribution to First Financial without prior regulatory approval.

**First Financial Bancorp** 2025 Annual Report **63**

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**Notes to Consolidated Financial Statements**

**4. Investment Securities**

During the year ended December 31, 2025, proceeds on the sale of $752.3 million of AFS securities resulted in gains of $3.5 million and losses of $18.0 million and a tax benefit of $3.4 million. Approximately $289.2 million of the AFS securities sold were acquired in the Westfield transaction.

During the year ended December 31, 2024, proceeds on the sale of $352.5 million of AFS securities resulted in gains of $1.2 million and losses of $16.6 million and a tax benefit of $3.6 million. Additionally, in the twelve months ended December 31, 2024, First Financial sold its remaining Class B Visa shares, which resulted in proceeds of $11.6 million, with gross realized gains of $2.2 million. The gain on the sale of the Class B Visa shares is included in Net gain (loss) on investment securities on the Consolidated Statements of Income.

During the year ended December 31, 2023, proceeds on the sale of $92.2 million of AFS securities resulted in losses of $1.3 million and insignificant gains. The impact to income tax expense from these sales was insignificant in 2023.

First Financial had six AFS securities with unrealized losses due to credit deterioration at December 31, 2025. These securities totaled $20.9 million, and had unrealized losses of $9.8 million. The Company had two AFS securities with unrealized losses due to credit deterioration at December 31, 2024, which totaled $11.1 million, and had unrealized losses of $1.1 million. The Company is monitoring these securities and believes that the Company will receive the full par value.

Additionally, the Company recognized impairment losses of $8.1 million and $9.7 million on AFS securities during the twelve months ended December 31, 2025 and December 31, 2024, respectively. The losses were included in Net gain (loss) on investment securities in the Consolidated Statements of Income. These losses were due to credit deterioration where the Company had determined that it no longer intended to hold the securities until the recovery of their amortized cost bases.

In 2025 and 2024, there were no reclassifications of HTM securities to AFS.

The carrying value of investment securities pledged as collateral to secure public deposits, repurchase agreements and for other purposes as required by law totaled $1.5 billion at both December 31, 2025 and December 31, 2024.

The following is table a summary of HTM and AFS investment securities as of December 31, 2025:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Held-to-maturity | Held-to-maturity | Held-to-maturity | Held-to-maturity | Available-for-sale | Available-for-sale | Available-for-sale | Available-for-sale |
| *(Dollars in thousands)* | Amortized<br>cost | Unrecognized<br>gain | Unrecognized<br>loss | Fair<br>value | Amortized<br>cost | Unrealized<br>gain | Unrealized<br>loss | Fair<br>value |
| U.S. Treasuries | $0 | $0 | $0 | $0 | $99 | $0 | $(4) | $95 |
| Securities of U.S. government agencies and corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Mortgage-backed securities - residential | 0 | 0 | 0 | 0 | 1607916 | 11265 | (69767) | 1549414 |
| Mortgage-backed securities - commercial | 27373 | 0 | (3392) | 23981 | 394129 | 1212 | (13741) | 381600 |
| Collateralized mortgage obligations | 6088 | 0 | (499) | 5589 | 741819 | 3765 | (36347) | 709237 |
| Obligations of state and other political subdivisions | 8334 | 60 | (179) | 8215 | 706668 | 931 | (89509) | 618090 |
| Asset-backed securities | 0 | 0 | 0 | 0 | 568366 | 1817 | (13639) | 556544 |
| Other securities | 16750 | 0 | (201) | 16549 | 163078 | 1063 | (7189) | 156952 |
| &nbsp;&nbsp;&nbsp;**Total** | $58545 | $60 | $(4271) | $54334 | $4182075 | $20053 | $(230196) | $3971932 |

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**64 First Financial Bancorp** 2025 Annual Report

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The following is a summary of HTM and AFS investment securities as of December 31, 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Held-to-maturity | Held-to-maturity | Held-to-maturity | Held-to-maturity | Available-for-sale | Available-for-sale | Available-for-sale | Available-for-sale |
| *(Dollars in thousands)* | Amortized<br>cost | Unrecognized<br>gain | Unrecognized<br>loss | Fair<br>value | Amortized<br>cost | Unrealized<br>gain | Unrealized<br>loss | Fair<br>value |
| U.S. Treasuries | $0 | $0 | $0 | $0 | $99 | $0 | $(9) | $90 |
| Securities of U.S. government agencies and corporations | 0 | 0 | 0 | 0 | 83224 | 0 | (11546) | 71678 |
| Mortgage-backed securities - residential | 0 | 0 | 0 | 0 | 1102242 | 508 | (104208) | 998542 |
| Mortgage-backed securities - commercial | 30444 | 0 | (4454) | 25990 | 382727 | 26 | (25381) | 357372 |
| Collateralized mortgage obligations | 7007 | 0 | (788) | 6219 | 620315 | 1449 | (52599) | 569165 |
| Obligations of state and other political subdivisions | 8259 | 42 | (339) | 7962 | 630813 | 357 | (109904) | 521266 |
| Asset-backed securities | 0 | 0 | 0 | 0 | 555484 | 998 | (22379) | 534103 |
| Other securities | 31250 | 0 | (2432) | 28818 | 137748 | 120 | (6308) | 131560 |
| &nbsp;&nbsp;&nbsp;**Total** | $76960 | $42 | $(8013) | $68989 | $3512652 | $3458 | $(332334) | $3183776 |

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The following table provides a summary of investment securities by contractual maturity as of December 31, 2025, except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Held-to-maturity | Held-to-maturity | Available-for-sale | Available-for-sale |
| *(Dollars in thousands)* | Amortized<br>cost | Fair<br>value | Amortized<br>cost | Fair<br>value |
| Due in one year or less | $720 | $720 | $26972 | $25868 |
| Due after one year through five years | 21972 | 21864 | 103662 | 91375 |
| Due after five years through ten years | 1000 | 963 | 186476 | 165066 |
| Due after ten years | 1392 | 1217 | 552735 | 492828 |
| Mortgage-backed securities - residential | 0 | 0 | 1607916 | 1549414 |
| Mortgage-backed securities - commercial | 27373 | 23981 | 394129 | 381600 |
| Collateralized mortgage obligations | 6088 | 5589 | 741819 | 709237 |
| Asset-backed securities | 0 | 0 | 568366 | 556544 |
| &nbsp;&nbsp;&nbsp;**Total** | $58545 | $54334 | $4182075 | $3971932 |

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Unrealized gains and losses on AFS debt securities are generally due to fluctuations in current market yields relative to the yields of the securities at their amortized cost. All AFS securities with unrealized losses are reviewed quarterly to determine if any impairment exists, requiring a write-down to fair value. For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income.

For AFS securities in an unrealized loss position that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis.

Other than the previously mentioned securities on which the Company recorded impairment losses, First Financial does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities prior to maturity or recovery of the recorded value. Additionally, based on the Company's credit assessment of AFS securities in an unrealized loss position, the Company recorded no reserves on investment securities for the twelve months ended December 31, 2025 or 2024.

**First Financial Bancorp** 2025 Annual Report **65**

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**Notes to Consolidated Financial Statements**

As of December 31, 2025, the Company's investment securities portfolio consisted of 949 AFS and HTM securities, of which 533 were in an unrealized loss position. As of December 31, 2024, the Company's investment securities portfolio consisted of 743 AFS and HTM securities, of which 644 were in an unrealized loss position.

Primarily all of First Financial's HTM debt securities are issued by U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as "risk free," and have a long history of zero credit loss. The remainder of the Company's HTM securities are non-agency collateralized mortgage obligations

and obligations of state and other political subdivisions which currently carry ratings no lower than A+. There were no HTM securities on nonaccrual status or past due as of December 31, 2025, or 2024.

Management measures expected credit losses on HTM debt securities on a collective basis by security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company did not record an ACL for these securities as of December 31, 2025 or 2024.

The following tables provide the fair value and gross unrealized losses on AFS investment securities in an unrealized loss position for which no ACL was recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Less than 12 months | Less than 12 months | 12 months or more | 12 months or more | Total | Total |
| *(Dollars in thousands)* | Fair<br>value | Unrealized<br>loss | Fair<br>value | Unrealized<br>loss | Fair<br>value | Unrealized<br>loss |
| U.S. Treasuries | $0 | $0 | $95 | $(4) | $95 | $(4) |
| Securities of U.S. government agencies and corporations | 0 | 0 | 0 | 0 | 0 | 0 |
| Mortgage-backed securities - residential | 277394 | (1349) | 536694 | (68418) | 814088 | (69767) |
| Mortgage-backed securities - commercial | 39084 | (108) | 166649 | (13633) | 205733 | (13741) |
| Collateralized mortgage obligations | 56942 | (130) | 286606 | (36217) | 343548 | (36347) |
| Obligations of state and other political subdivisions | 71825 | (511) | 466766 | (88998) | 538591 | (89509) |
| Asset-backed securities | 70967 | (48) | 54351 | (13591) | 125318 | (13639) |
| Other securities | 7321 | (54) | 76141 | (7135) | 83462 | (7189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $523533 | $(2200) | $1587302 | $(227996) | $2110835 | $(230196) |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Less than 12 months | Less than 12 months | 12 months or more | 12 months or more | Total | Total |
| *(Dollars in thousands)* | Fair<br>value | Unrealized<br>loss | Fair<br>value | Unrealized<br>loss | Fair<br>value | Unrealized<br>loss |
| U.S. Treasuries | $0 | $0 | $90 | $(9) | $90 | $(9) |
| Securities of U.S. Government agencies and corporations | 0 | 0 | 71678 | (11546) | 71678 | (11546) |
| Mortgage-backed securities - residential | 417516 | (9130) | 503321 | (95078) | 920837 | (104208) |
| Mortgage-backed securities - commercial | 26516 | (67) | 286589 | (25314) | 313105 | (25381) |
| Collateralized mortgage obligations | 120670 | (1776) | 296813 | (50823) | 417483 | (52599) |
| Obligations of state and other political subdivisions | 19636 | (351) | 478083 | (109553) | 497719 | (109904) |
| Asset-backed securities | 26389 | (189) | 159135 | (22190) | 185524 | (22379) |
| Other securities | 9988 | (12) | 115452 | (6296) | 125440 | (6308) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $620715 | $(11525) | $1911161 | $(320809) | $2531876 | $(332334) |

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**66 First Financial Bancorp** 2025 Annual Report

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The following tables provide the fair value and gross unrealized losses on HTM investment securities in an unrealized loss position for which no ACL was recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Less than 12 months | Less than 12 months | 12 months or more | 12 months or more | Total | Total |
| *(Dollars in thousands)* | Fair<br>value | Unrecognized<br>loss | Fair<br>value | Unrecognized<br>loss | Fair<br>value | Unrecognized<br>loss |
| U.S. Treasuries | $0 | $0 | $0 | $0 | $0 | $0 |
| Securities of U.S. government agencies and corporations | 0 | 0 | 0 | 0 | 0 | 0 |
| Mortgage-backed securities - residential | 0 | 0 | 0 | 0 | 0 | 0 |
| Mortgage-backed securities - commercial | 0 | 0 | 23981 | (3392) | 23981 | (3392) |
| Collateralized mortgage obligations | 0 | 0 | 5589 | (499) | 5589 | (499) |
| Obligations of state and other political subdivisions | 2273 | (4) | 1217 | (175) | 3490 | (179) |
| Asset-backed securities | 0 | 0 | 0 | 0 | 0 | 0 |
| Other securities | 0 | 0 | 16549 | (201) | 16549 | (201) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $2273 | $(4) | $47336 | $(4267) | $49609 | $(4271) |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Less than 12 months | Less than 12 months | 12 months or more | 12 months or more | Total | Total |
| *(Dollars in thousands)* | Fair<br>value | Unrecognized<br>loss | Fair<br>value | Unrecognized<br>loss | Fair<br>value | Unrecognized<br>loss |
| U.S. Treasuries | $0 | $0 | $0 | $0 | $0 | $0 |
| Securities of U.S. government agencies and corporations | 0 | 0 | 0 | 0 | 0 | 0 |
| Mortgage-backed securities - residential | 0 | 0 | 0 | 0 | 0 | 0 |
| Mortgage-backed securities - commercial | 0 | 0 | 25990 | (4454) | 25990 | (4454) |
| Collateralized mortgage obligations | 0 | 0 | 6219 | (788) | 6219 | (788) |
| Obligations of state and other political subdivisions | 3111 | (33) | 2288 | (306) | 5399 | (339) |
| Asset-backed securities | 0 | 0 | 0 | 0 | 0 | 0 |
| Other securities | 0 | 0 | 28818 | (2432) | 28818 | (2432) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $3111 | $(33) | $63315 | $(7980) | $66426 | $(8013) |

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For further detail on the fair value of investment securities, see Note 23 – Fair Value Disclosures.

**First Financial Bancorp** 2025 Annual Report **67**

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**Notes to Consolidated Financial Statements**

**5. Loans and Leases**

First Financial offers clients a variety of commercial and consumer loan and lease products with diverse interest rates and payment terms. Commercial loan categories include C&I, CRE, construction real estate and lease financing. Consumer loan categories include residential real estate, home equity, installment and credit card.

Lending activities are primarily concentrated in states where the Bank operates banking centers (Ohio, Indiana, Kentucky and Illinois). First Financial also has certain specialty lending platforms that extend beyond the geographic banking center footprint. These specialty finance businesses provide insurance premium financing, equipment lease financing, and financing to franchise owners and clients within the financial services industry.

Loans, excluding loans held for sale, totaled $13.4 billion at December 31, 2025 and $11.8 billion at December 31, 2024. The balance at $13.4 billion included $1.6 billion acquired in the Westfield transaction.

**Credit quality.** To facilitate the monitoring of credit quality for commercial loans, First Financial utilizes the following categories of credit grades:

*Pass* - Higher quality loans that do not fit any of the other categories described below.

*Special Mention* - First Financial assigns a special mention rating to loans and leases with potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in First Financial's credit position at some future date.

*Substandard* - First Financial assigns a substandard rating to loans or leases that are inadequately protected by the current sound financial worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans and leases have well-defined weaknesses that jeopardize repayment of the debt. Substandard loans and leases are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not addressed.

*Doubtful* - First Financial assigns a doubtful rating to loans and leases with all of the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans.

The credit grades previously described are derived from standard regulatory rating definitions and are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

First Financial considers repayment performance to be the best indicator of credit quality for consumer loans. Consumer loans that have principal and interest payments that are past due by 90 days or more are generally classified as nonperforming.

**68 First Financial Bancorp** 2025 Annual Report

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The following table sets forth the Company's loan portfolio at December 31, 2025 by risk attribute and origination date as well as detailing current period chargeoffs by year of origination:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(Dollars in thousands)* | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Term Total | Revolving | Total |
| **Commercial & industrial** | **Commercial & industrial** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $1271775 | $677609 | $573100 | $416504 | $195513 | $370281 | $3504782 | $983377 | $4488159 |
| &nbsp;&nbsp;&nbsp;Special mention | 11034 | 2951 | 3605 | 3426 | 15620 | 1964 | 38600 | 28194 | 66794 |
| &nbsp;&nbsp;&nbsp;Substandard | 5264 | 6635 | 18335 | 9918 | 5780 | 4883 | 50815 | 26473 | 77288 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $1288073 | $687195 | $595040 | $429848 | $216913 | $377128 | $3594197 | $1038044 | $4632241 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $900 | $1223 | $8702 | $9133 | $1272 | $455 | $21685 | $290 | $21975 |
| **Lease financing** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $219775 | $198664 | $150630 | $45917 | $7589 | $2852 | $625427 | $0 | $625427 |
| &nbsp;&nbsp;&nbsp;Special mention | 0 | 44 | 50 | 0 | 0 | 0 | 94 | 0 | 94 |
| &nbsp;&nbsp;&nbsp;Substandard | 903 | 261 | 4212 | 7053 | 459 | 118 | 13006 | 0 | 13006 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $220678 | $198969 | $154892 | $52970 | $8048 | $2970 | $638527 | $0 | $638527 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $762 | $1605 | $858 | $32 | $19 | $3276 | $0 | $3276 |
| **Construction real estate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $156573 | $157874 | $111375 | $124429 | $17642 | $44313 | $612206 | $887 | $613093 |
| &nbsp;&nbsp;&nbsp;Special mention | 0 | 0 | 0 | 32549 | 0 | 16209 | 48758 | 0 | 48758 |
| &nbsp;&nbsp;&nbsp;Substandard | 0 | 0 | 0 | 14368 | 0 | 1120 | 15488 | 0 | 15488 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $156573 | $157874 | $111375 | $171346 | $17642 | $61642 | $676452 | $887 | $677339 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $0 | $0 | $245 | $245 | $0 | $245 |
| **Commercial real estate - investor** | **Commercial real estate - investor** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $691430 | $338403 | $365545 | $459555 | $267413 | $995774 | $3118120 | $55353 | $3173473 |
| &nbsp;&nbsp;&nbsp;Special mention | 18990 | 586 | 0 | 293 | 0 | 9554 | 29423 | 0 | 29423 |
| &nbsp;&nbsp;&nbsp;Substandard | 550 | 0 | 1723 | 10298 | 0 | 31422 | 43993 | 0 | 43993 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $710970 | $338989 | $367268 | $470146 | $267413 | $1036750 | $3191536 | $55353 | $3246889 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $433 | $0 | $3105 | $3538 | $0 | $3538 |
| **Commercial real estate - owner** | **Commercial real estate - owner** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $204292 | $209356 | $142925 | $145530 | $96069 | $278518 | $1076690 | $9388 | $1086078 |
| &nbsp;&nbsp;&nbsp;Special mention | 2268 | 2865 | 2132 | 1574 | 3497 | 12484 | 24820 | 492 | 25312 |
| &nbsp;&nbsp;&nbsp;Substandard | 245 | 3940 | 2399 | 10582 | 3620 | 5491 | 26277 | 0 | 26277 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $206805 | $216161 | $147456 | $157686 | $103186 | $296493 | $1127787 | $9880 | $1137667 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| **Residential real estate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Performing | $138000 | $198224 | $335419 | $362690 | $287576 | $488914 | $1810823 | $0 | $1810823 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 0 | 916 | 920 | 2031 | 4800 | 12694 | 21361 | 0 | 21361 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $138000 | $199140 | $336339 | $364721 | $292376 | $501608 | $1832184 | $0 | $1832184 |
| **YTD Gross chargeoffs** | $0 | $0 | $0 | $0 | $119 | $48 | $167 | $0 | $167 |
| **Home equity** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Performing | $40066 | $26234 | $19405 | $17348 | $21786 | $39242 | $164081 | $834642 | $998723 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 341 | 173 | 335 | 178 | 70 | 603 | 1700 | 4781 | 6481 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $40407 | $26407 | $19740 | $17526 | $21856 | $39845 | $165781 | $839423 | $1005204 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $43 | $0 | $8 | $229 | $280 | $93 | $373 |
| **Installment** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Performing | $16087 | $10578 | $18085 | $25692 | $22197 | $22037 | $114676 | $70995 | $185671 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 449 | 167 | 49 | 402 | 753 | 505 | 2325 | 698 | 3023 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $16536 | $10745 | $18134 | $26094 | $22950 | $22542 | $117001 | $71693 | $188694 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $270 | $1053 | $1128 | $1692 | $638 | $37 | $4818 | $14 | $4832 |

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**First Financial Bancorp** 2025 Annual Report **69**

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**Notes to Consolidated Financial Statements**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit cards** | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;Performing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $64979 | $64979 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 346 | 346 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $65325 | $65325 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $2269 | $2269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Grand Total Loans** | $2778042 | $1835480 | $1750244 | $1690337 | $950384 | $2338978 | $11343465 | $2080605 | $13424070 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Grand Total YTD Gross Chargeoffs** | $1170 | $3038 | $11478 | $12116 | $2069 | $4138 | $34009 | $2666 | $36675 |

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The following table sets forth the Company's loan portfolio at December 31, 2024 by risk attribute and origination date:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(Dollars in thousands)* | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Term Total | Revolving | Total |
| **Commercial & industrial** | **Commercial & industrial** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $819600 | $710857 | $592046 | $298770 | $162136 | $241857 | $2825266 | $890880 | $3716146 |
| &nbsp;&nbsp;&nbsp;Special mention | 5594 | 1964 | 1971 | 620 | 2859 | 71 | 13079 | 16211 | 29290 |
| &nbsp;&nbsp;&nbsp;Substandard | 4873 | 3433 | 22508 | 8533 | 347 | 4309 | 44003 | 26419 | 70422 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $830067 | $716254 | $616525 | $307923 | $165342 | $246237 | $2882348 | $933510 | $3815858 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $318 | $1264 | $5293 | $4106 | $147 | $3295 | $14423 | $225 | $14648 |
| **Lease financing** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $228132 | $253776 | $70608 | $11480 | $5309 | $1137 | $570442 | $0 | $570442 |
| &nbsp;&nbsp;&nbsp;Special mention | 0 | 644 | 10171 | 550 | 0 | 0 | 11365 | 0 | 11365 |
| &nbsp;&nbsp;&nbsp;Substandard | 292 | 10225 | 4893 | 129 | 8 | 691 | 16238 | 0 | 16238 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $228424 | $264645 | $85672 | $12159 | $5317 | $1828 | $598045 | $0 | $598045 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $1008 | $451 | $66 | $0 | $1867 | $3392 | $0 | $3392 |
| **Construction real estate** | **Construction real estate** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $139377 | $213300 | $322493 | $40740 | $1590 | $17352 | $734852 | $0 | $734852 |
| &nbsp;&nbsp;&nbsp;Special mention | 3525 | 0 | 12737 | 0 | 17832 | 0 | 34094 | 0 | 34094 |
| &nbsp;&nbsp;&nbsp;Substandard | 0 | 0 | 0 | 10500 | 0 | 0 | 10500 | 0 | 10500 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $142902 | $213300 | $335230 | $51240 | $19422 | $17352 | $779446 | $0 | $779446 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| **Commercial real estate - investor** | **Commercial real estate - investor** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $515950 | $376740 | $497047 | $340115 | $231922 | $949772 | $2911546 | $36716 | $2948262 |
| &nbsp;&nbsp;&nbsp;Special mention | 13738 | 30454 | 18423 | 4282 | 106 | 27144 | 94147 | 0 | 94147 |
| &nbsp;&nbsp;&nbsp;Substandard | 0 | 0 | 10600 | 0 | 4950 | 35425 | 50975 | 0 | 50975 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $529688 | $407194 | $526070 | $344397 | $236978 | $1012341 | $3056668 | $36716 | $3093384 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $0 | $788 | $9837 | $10625 | $0 | $10625 |
| **Commercial real estate - owner** | **Commercial real estate - owner** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $202580 | $126550 | $161401 | $94052 | $128068 | $215902 | $928553 | $17268 | $945821 |
| &nbsp;&nbsp;&nbsp;Special mention | 1839 | 134 | 213 | 2210 | 504 | 1173 | 6073 | 0 | 6073 |
| &nbsp;&nbsp;&nbsp;Substandard | 0 | 0 | 858 | 3159 | 1249 | 11200 | 16466 | 0 | 16466 |
| &nbsp;&nbsp;&nbsp;Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $204419 | $126684 | $162472 | $99421 | $129821 | $228275 | $951092 | $17268 | $968360 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $0 | $0 | $8 | $8 | $0 | $8 |
| **Residential real estate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Performing | $129008 | $321232 | $324180 | $233355 | $169901 | $264312 | $1441988 | $0 | $1441988 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 198 | 541 | 1323 | 4412 | 4300 | 9522 | 20296 | 0 | 20296 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $129206 | $321773 | $325503 | $237767 | $174201 | $273834 | $1462284 | $0 | $1462284 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $25 | $16 | $0 | $102 | $143 | $0 | $143 |

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**70 First Financial Bancorp** 2025 Annual Report

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---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Home equity** | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;Performing | $30799 | $23969 | $20280 | $24878 | $28882 | $21160 | $149968 | $692993 | $842961 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 61 | 328 | 124 | 144 | 7 | 354 | 1018 | 5060 | 6078 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $30860 | $24297 | $20404 | $25022 | $28889 | $21514 | $150986 | $698053 | $849039 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $37 | $37 | $0 | $186 | $5 | $182 | $447 | $0 | $447 |
| **Installment** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Performing | $12356 | $9997 | $22244 | $11500 | $2004 | $3759 | $61860 | $69153 | $131013 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 190 | 116 | 607 | 268 | 20 | 16 | 1217 | 821 | 2038 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $12546 | $10113 | $22851 | $11768 | $2024 | $3775 | $63077 | $69974 | $133051 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $382 | $1120 | $4066 | $1779 | $71 | $42 | $7460 | $0 | $7460 |
| **Credit cards** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Performing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $61969 | $61969 |
| &nbsp;&nbsp;&nbsp;Nonperforming | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 342 | 342 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $62311 | $62311 |
| &nbsp;&nbsp;YTD Gross chargeoffs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $2586 | $2586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Loans** | $2108112 | $2084260 | $2094727 | $1089697 | $761994 | $1805156 | $9943946 | $1817832 | $11761778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total YTD Gross Chargeoffs** | $737 | $3429 | $9835 | $6153 | $1011 | $15333 | $36498 | $2811 | $39309 |

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**Delinquency.** Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment.

Loan delinquency, including nonaccrual loans, was as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 |
| *(Dollars in thousands)* | 30 – 59<br>days<br>past due | 60 – 89<br>days<br>past due | > 90 days<br>past due | Total<br>past<br>due | Current | Total | > 90 days<br>past due<br>and still<br>accruing |
| **Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial & industrial | $7894 | $3176 | $3829 | $14899 | $4617342 | $4632241 | $0 |
| &nbsp;&nbsp;&nbsp;Lease financing | 1884 | 283 | 4088 | 6255 | 632272 | 638527 | 0 |
| &nbsp;&nbsp;&nbsp;Construction real estate | 0 | 0 | 1120 | 1120 | 676219 | 677339 | 0 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-investor | 3540 | 3613 | 36273 | 43426 | 3203463 | 3246889 | 0 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-owner | 1081 | 2985 | 3436 | 7502 | 1130165 | 1137667 | 0 |
| &nbsp;&nbsp;&nbsp;Residential real estate | 6338 | 248 | 5975 | 12561 | 1819623 | 1832184 | 0 |
| &nbsp;&nbsp;&nbsp;Home equity | 2966 | 1065 | 1224 | 5255 | 999949 | 1005204 | 0 |
| &nbsp;&nbsp;&nbsp;Installment | 935 | 462 | 484 | 1881 | 186813 | 188694 | 65 |
| &nbsp;&nbsp;&nbsp;Credit card | 860 | 272 | 347 | 1479 | 63846 | 65325 | 346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $25498 | $12104 | $56776 | $94378 | $13329692 | $13424070 | $411 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 |
| *(Dollars in thousands)* | 30 - 59<br>days<br>past due | 60 - 89<br>days<br>past due | > 90 days<br>past due | Total<br>past<br>due | Current | Total | > 90 days<br>past due and still accruing |
| **Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial & industrial | $4521 | $1598 | $2470 | $8589 | $3807269 | $3815858 | $0 |
| &nbsp;&nbsp;&nbsp;Lease financing | 3096 | 3085 | 3386 | 9567 | 588478 | 598045 | 19 |
| &nbsp;&nbsp;&nbsp;Construction real estate | 0 | 10500 | 0 | 10500 | 768946 | 779446 | 0 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-investor | 0 | 0 | 17360 | 17360 | 3076024 | 3093384 | 0 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-owner | 856 | 0 | 6144 | 7000 | 961360 | 968360 | 0 |
| &nbsp;&nbsp;&nbsp;Residential real estate | 6217 | 154 | 5968 | 12339 | 1449945 | 1462284 | 0 |
| &nbsp;&nbsp;&nbsp;Home equity | 1902 | 1102 | 1428 | 4432 | 844607 | 849039 | 0 |
| &nbsp;&nbsp;&nbsp;Installment | 914 | 569 | 402 | 1885 | 131166 | 133051 | 0 |
| &nbsp;&nbsp;&nbsp;Credit card | 450 | 196 | 342 | 988 | 61323 | 62311 | 342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $17956 | $17204 | $37500 | $72660 | $11689118 | $11761778 | $361 |

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**First Financial Bancorp** 2025 Annual Report **71**

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**Notes to Consolidated Financial Statements**

**Financial Difficulty Modifications.** FDM might result when a borrower is in financial distress, and may be in the form of principal forgiveness, an interest rate reduction, a term extension or an other-than-insignificant payment delay. In some cases, the Company might provide multiple types of modifications for a single loan. One type of modification, such as payment delay, may be granted initially, however, if the borrower continues to experience financial difficulty, another modification, such as term extension and/or interest rate reduction might be granted. Loans included in the "combination" column in the table that follows have more than one modification made to the same loan within the current reporting period. Additionally, modifications with a term extension or interest rate reduction are intended to reduce the borrower's monthly payment, while modifications with a payment delay, which typically allow borrowers to make monthly payments, interest only payments for a period of time, are structured to cure the payment defaults by making delinquent payments due at maturity. Payment deferrals may be up to one year and have minimal financial impact since the deferred payments are paid at maturity.

The following tables provide the amortized cost basis, as of the period end date, of FDMs that were granted modifications during the years ended December 31, 2025, 2024 and 2023:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Year ended December 31, 2025 | Year ended December 31, 2025 | Year ended December 31, 2025 | Year ended December 31, 2025 | Year ended December 31, 2025 | Year ended December 31, 2025 | Year ended December 31, 2025 |
| *(Dollars in thousands)* | Principal forgiveness | Payment delay | Term extension | Interest rate reduction | Combination: Term extension and interest rate reduction | Total | Percent of total class of loans |
| Commercial & industrial | $0 | $4375 | $15825 | $0 | $0 | $20200 | 0.44% |
| Commercial real estate-investor | 0 | 474 | 0 | 0 | 0 | 474 | 0.01% |
| Residential real estate | 0 | 4009 | 502 | 0 | 0 | 4511 | 0.25% |
| Home equity | 0 | 921 | 0 | 0 | 0 | 921 | 0.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | $9779 | $16327 | $0 | $0 | $26106 | 0.19% |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Year ended December 31, 2024 | Year ended December 31, 2024 | Year ended December 31, 2024 | Year ended December 31, 2024 | Year ended December 31, 2024 | Year ended December 31, 2024 | Year ended December 31, 2024 |
| *(Dollars in thousands)* | Principal forgiveness | Payment delay | Term extension | Interest rate reduction | Combination: Term extension and interest rate reduction | Total | Percent of total class of loans |
| Commercial & industrial | $0 | $0 | $18306 | $0 | $0 | $18306 | 0.48% |
| Construction real estate | 0 | 0 | 10500 | 0 | 0 | 10500 | 1.35% |
| Residential real estate | 0 | 2353 | 4 | 0 | 0 | 2357 | 0.16% |
| Home equity | 0 | 491 | 0 | 0 | 0 | 491 | 0.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | $2844 | $28810 | $0 | $0 | $31654 | 0.27% |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Year ended December 31, 2023 | Year ended December 31, 2023 | Year ended December 31, 2023 | Year ended December 31, 2023 | Year ended December 31, 2023 | Year ended December 31, 2023 | Year ended December 31, 2023 |
| *(Dollars in thousands)* | Principal forgiveness | Payment delay | Term extension | Interest rate reduction | Combination: Term extension and interest rate reduction | Total | Percent of total class of loans |
| Commercial & industrial | $0 | $1181 | $3329 | $0 | $0 | $4510 | 0.13% |
| Residential real estate | 0 | 1889 | 96 | 0 | 55 | 2040 | 0.15% |
| Home equity | 0 | 181 | 0 | 0 | 0 | 181 | 0.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | $3251 | $3425 | $0 | $55 | $6731 | 0.06% |

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**72 First Financial Bancorp** 2025 Annual Report

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The following tables provide the financial effect of FDMs granted during the years ended December 31, 2025, 2024 and 2023 by class of loans:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Year ended December 31, 2025 | Year ended December 31, 2025 | Year ended December 31, 2025 | Year ended December 31, 2025 |
| *(Dollars in thousands)* | Principal forgiveness |  | Weighted average interest rate reduction | Weighted average term extension |
| Commercial & industrial | $0 |  | 0.00% | 0.5 years |
| Residential real estate | 0 |  | 0.00% | 7.4 years |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | &nbsp;&nbsp;&nbsp;&nbsp;**0** | 0.00% | 0.7 years |

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| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, 2024 | Year ended December 31, 2024 | Year ended December 31, 2024 |
| *(Dollars in thousands)* | Principal forgiveness | Weighted average interest rate reduction | Weighted average term extension |
| Commercial & industrial | $0 | 0.00% | 0.4 years |
| Construction real estate | 0 | 0.00% | 0.3 years |
| Residential real estate | 0 | 0.00% | 3.0 years |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | 0.00% | 0.4 years |

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| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, 2023 | Year ended December 31, 2023 | Year ended December 31, 2023 |
| *(Dollars in thousands)* | Principal forgiveness | Weighted average interest rate reduction | Weighted average term extension |
| Commercial & industrial | $0 | 0.00% | 0.2 years |
| Residential real estate | 0 | 2.00% | 11.4 years |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | 0.00% | 0.7 years |

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As of December 31, 2025, the Company has committed to lend no additional amounts to the borrowers who have been classified as FDM. Additionally, there were 27 FDMs with a balance of $5.3 million that defaulted during the year ended December 31, 2025, 12 FDMs with a balance of $11.3 million that defaulted during the year ended December 31, 2024 and 18 FDMs with a balance of $4.4 million that defaulted during the year ended December 31, 2023.

The Company closely monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following tables provide the performance of loans, as of the period end date, of FDMs granted during the twelve months preceding each year end:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Twelve months ended December 31, 2025 | Twelve months ended December 31, 2025 | Twelve months ended December 31, 2025 | Twelve months ended December 31, 2025 | Twelve months ended December 31, 2025 |
| *(Dollars in thousands)* | Current | 30 – 59 days past due | 60 – 89 days past due | > 89 days past due | Total |
| Commercial & industrial | $17525 | $0 | $1351 | $1324 | $20200 |
| Commercial real estate-investor | 474 | 0 | 0 | 0 | 474 |
| Residential real estate | 2164 | 940 | 440 | 967 | 4511 |
| Home equity | 772 | 104 | 45 | 0 | 921 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $20935 | $1044 | $1836 | $2291 | $26106 |

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**First Financial Bancorp** 2025 Annual Report **73**

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**Notes to Consolidated Financial Statements**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2024 |
| *(Dollars in thousands)* | Current | 30 – 59 days past due | 60 – 89 days past due | > 89 days past due | Total |
| Commercial & industrial | $17916 | $0 | $0 | $390 | $18306 |
| Construction real estate | 0 | 0 | 10500 | 0 | 10500 |
| Residential real estate | 1159 | 890 | 241 | 67 | 2357 |
| Home equity | 487 | 0 | 0 | 4 | 491 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $19562 | $890 | $10741 | $461 | $31654 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Twelve months ended December 31, 2023 | Twelve months ended December 31, 2023 | Twelve months ended December 31, 2023 | Twelve months ended December 31, 2023 | Twelve months ended December 31, 2023 |
| *(Dollars in thousands)* | Current | 30 – 59 days past due | 60 – 89 days past due | > 89 days past due | Total |
| Commercial & industrial | $1181 | $821 | $0 | $2508 | $4510 |
| Residential real estate | 1021 | 500 | 240 | 279 | 2040 |
| Home equity | 111 | 70 | 0 | 0 | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $2313 | $1391 | $240 | $2787 | $6731 |

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**Nonaccrual.** Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to the continued failure to adhere to contractual payment terms by the borrower, coupled with other pertinent factors. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan classified as nonaccrual may return to accrual status if none of the principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual principal and interest.

First Financial individually reviews all nonaccrual loan relationships greater than $250,000 to determine if a reserve is required based on the borrower's overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. These reserves are based on discounted cash flows using the loan's initial effective interest rate or the fair value of the collateral for certain collateral dependent loans.

The following table provides information on nonaccrual loans and leases as of December 31:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
| *(Dollars in thousands)* | Nonaccrual loans with a related ACL | Nonaccrual loans with no related ACL | Total nonaccrual | Nonaccrual loans with a related ACL | Nonaccrual loans with no related ACL | Total nonaccrual | Nonaccrual loans with a related ACL | Nonaccrual loans with no related ACL | Total nonaccrual |
| **Nonaccrual loans** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial & industrial | $17329 | $10132 | $27461 | $1939 | $4702 | $6641 | $3329 | $12417 | $15746 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease financing | 4770 | 890 | 5660 | 1982 | 4245 | 6227 | 1505 | 2105 | 3610 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction real estate | 0 | 1120 | 1120 | 0 | 0 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 15977 | 29613 | 45590 | 0 | 32303 | 32303 | 16356 | 11628 | 27984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | 0 | 18302 | 18302 | 0 | 16700 | 16700 | 0 | 14067 | 14067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity | 0 | 2927 | 2927 | 0 | 3418 | 3418 | 0 | 3476 | 3476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Installment | 0 | 748 | 748 | 0 | 684 | 684 | 0 | 870 | 870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total nonaccrual loans** | $38076 | $63732 | $101808 | $3921 | $62052 | $65973 | $21190 | $44563 | $65753 |

---

Interest income recognized on nonaccrual loans was insignificant during both years ended December 31, 2025 and 2024 and was $1.7 million for the year ended December 31, 2023.

**74 First Financial Bancorp** 2025 Annual Report

------

A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral. The following table presents the amortized cost basis of collateral dependent loans by class of loan.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral |
| *(Dollars in thousands)* | Business assets | Commercial real estate | Equipment | Land | Residential real estate | Other | Total |
| **Class of loan** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial & industrial | $18822 | $0 | $2392 | $0 | $0 | $6247 | $27461 |
| &nbsp;&nbsp;&nbsp;Lease financing | 0 | 0 | 5660 | 0 | 0 | 0 | 5660 |
| &nbsp;&nbsp;&nbsp;Construction real estate | 0 | 1120 | 0 | 0 | 0 | 0 | 1120 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-investor | 0 | 36862 | 0 | 0 | 46 | 0 | 36908 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-owner | 0 | 8682 | 0 | 0 | 0 | 0 | 8682 |
| &nbsp;&nbsp;&nbsp;Residential real estate | 0 | 0 | 0 | 0 | 18302 | 0 | 18302 |
| &nbsp;&nbsp;&nbsp;Home equity | 0 | 0 | 0 | 0 | 2927 | 0 | 2927 |
| &nbsp;&nbsp;Installment | 0 | 0 | 0 | 0 | 0 | 748 | 748 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $18822 | $46664 | $8052 | $0 | $21275 | $6995 | $101808 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral | Type of Collateral |
| *(Dollars in thousands)* | Business assets | Commercial real estate | Equipment | Land | Residential real estate | Other | Total |
| **Class of loan** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial & industrial | $2527 | $0 | $1434 | $0 | $0 | $2680 | $6641 |
| &nbsp;&nbsp;&nbsp;Lease financing | 0 | 0 | 6227 | 0 | 0 | 0 | 6227 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-investor | 0 | 26132 | 0 | 0 | 27 | 0 | 26159 |
| &nbsp;&nbsp;&nbsp;Commercial real estate-owner | 0 | 4250 | 1894 | 0 | 0 | 0 | 6144 |
| &nbsp;&nbsp;&nbsp;Residential real estate | 0 | 0 | 0 | 0 | 16700 | 0 | 16700 |
| &nbsp;&nbsp;&nbsp;Home equity | 0 | 0 | 0 | 0 | 3418 | 0 | 3418 |
| &nbsp;&nbsp;Installment | 0 | 0 | 0 | 0 | 0 | 684 | 684 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $2527 | $30382 | $9555 | $0 | $20145 | $3364 | $65973 |

---

**PCD Loans.** First Financial has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows:

---

| | |
|:---|:---|
| *(Dollars in thousands)* | 2025 |
| Purchase price of loans at acquisition | $27402 |
| Allowance for credit losses at acquisition | 3050 |
| Non-credit discount at acquisition | 1505 |
| &nbsp;&nbsp;**Par value of acquired loans at acquisition** | $31957 |

---

**Lease financing - Lessor.** First Financial originates both sales-type and direct financing leases, and the Company manages and reviews lease residuals in accordance with its credit policies. Payments are generally fixed, however, in some agreements, lease payments are based on a rate or index plus a spread. Sales-type lease contracts contain the ability to purchase the underlying equipment at lease maturity and profit or loss is recognized at lease commencement. Direct financing leases are generally three to five years in length and may be extended at maturity, however, early cancellation may result in a fee to the borrower. For direct financing leases, the net unearned income is deferred and amortized over the life of the lease.

The components of the Company's net investments in direct financing and sales-type leases, which are included in Lease financing on the Consolidated Balance Sheets are as follows:

**First Financial Bancorp** 2025 Annual Report **75**

------

**Notes to Consolidated Financial Statements**

---

| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | December 31, 2025 | December 31, 2024 |
| Direct financing and sales-type leases |  |  |
| &nbsp;&nbsp;Lease receivables | $627742 | $581651 |
| &nbsp;&nbsp;Unguaranteed residual values | 10785 | 16394 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total net investment in direct financing and sales-type leases** | $638527 | $598045 |

---

Interest income for direct financing and sales-type leases was $38.3 million, $34.2 million and $25.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The remaining maturities of lease receivables were as follows:

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Direct financing and Sales-type |
| 2026 | $233153 |
| 2027 | 194207 |
| 2028 | 133930 |
| 2029 | 86042 |
| 2030 | 44019 |
| Thereafter | 18450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease payments | 709801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: unearned interest income | (82059) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net lease receivables** | $627742 |

---

**OREO.** OREO is comprised of properties acquired by the Company primarily through the loan foreclosure or repossession process, that result in partial or total satisfaction of problem loans.

Changes in OREO were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | Years ended December 31, | Years ended December 31, | Years ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Balance at beginning of year | $64 | $106 | $191 |
| Additions |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Residential real estate | 333 | 119 | 387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total additions | 333 | 119 | 387 |
| Disposals |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Residential real estate | (166) | (136) | (288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total disposals | (166) | (136) | (288) |
| Valuation adjustments |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Residential real estate | (47) | (25) | (184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total valuation adjustments | (47) | (25) | (184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Balance at end of year** | $184 | $64 | $106 |

---

**6. Allowance for Credit Losses**

**Allowance for credit losses - loans and leases.** The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the

**76 First Financial Bancorp** 2025 Annual Report

------

borrower or a guarantor or from the liquidation of collateral. Similarly, upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Cumulative recovery payments credited to the ACL for any loan do not exceed the amount charged-off. Accrued interest receivable on loans and leases, which totaled $54.1 million and $53.2 million as of December 31, 2025 and December 31, 2024, respectively, is excluded from the estimate of credit losses.

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. These adjustments are commonly known as the Qualitative Framework.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the ACL using the following methods:

*Commercial and industrial* **–** C&I loans include revolving lines of credit and term loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, leasehold improvements or other projects. C&I loans are generally underwritten individually and secured with the assets of the Company and/or the personal guarantee of the business owners. C&I loans also include ABL, equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector, insurance premium financing and commission-based loans to insurance agents and brokers. ABL transactions typically involve larger commercial clients and are secured by specific assets, such as inventory, accounts receivable, machinery and equipment. In the franchise lending space, First Financial focuses on a limited number of restaurant concepts that have sound economics, low closure rates and strong brand awareness within specified local, regional or national markets. Within the insurance lending platform, First Financial serves insurance agents and brokers that are looking to

maximize their book-of-business value and grow their agency business, in addition to commercial customers financing their

insurance premiums.

Expected default activity in the C&I portfolio is based on forecasted manufacturing overtime hours and business bankruptcies. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

*Lease financing* **–** Lease financing consists of lease transactions for the acquisition of both new and used business equipment for commercial clients. Lease products may include tax leases, finance leases, lease lines of credit and interim funding. The credit underwriting for lease transactions includes detailed analysis of the lessee's industry and business model, nature of the equipment, equipment resale values, historical and projected cash flow analysis, secondary sources of repayment and guarantor, in addition to other considerations.

The ACL model for leases sources expected default rates from the C&I portfolio model. Therefore, changes in forecasted expectations for manufacturing overtime hours and business bankruptcies could result in volatility in the Company's ACL as it pertains to finance leases in future periods.

*Construction real estate* **–** Real estate construction loans are term loans to individuals, companies or developers used for the construction or development of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Generally, these loans are for construction projects that have been pre-sold, pre-leased or have secured permanent financing, as well as loans to real estate companies with significant equity invested in the project. An independent credit team underwrites construction real estate loans, which are managed by experienced lending officers and monitored through the construction phase by a centralized funding desk that manages loan disbursements.

The construction ACL model is adjusted for forecasted changes in rental vacancy rates in the Bank's geographic footprint, CRE prices and median asking rent. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

*Commercial real estate - owner & investor* **–** Commercial real estate loans consist of term loans secured by a mortgage lien on real estate properties such as apartment buildings, office and industrial buildings and retail shopping centers. Additionally, the Company's franchise lending activities discussed in the "Commercial and Industrial" section often include the financing of real estate in addition to equipment. The credit underwriting for both owner-occupied and investor income producing real estate

**First Financial Bancorp** 2025 Annual Report **77**

------

**Notes to Consolidated Financial Statements**

loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, environmental risks and the type, age, condition and location of real estate, among other factors.

First Financial models owner-occupied and investor CRE separately when determining the ACL. For owner occupied CRE, the model is adjusted for forecasted changes in S&P 500 performance, CRE prices, and business bankruptcies. The investor CRE loans model is adjusted by forecasted S&P 500 performance, the return on rental property (NCREIF Property Index) and business bankruptcies. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

*Residential real estate* **–** Residential real estate loans represent loans to consumers for the financing of a residence. These loans generally have a 15 to 30 year term and a fixed interest rate, but may have a shorter term to maturity or an adjustable interest rate. In most cases, these loans are extended to borrowers to finance their primary residence. First Financial sells residential real estate loan originations into the secondary market on both servicing retained and servicing released bases. Residential real estate loans are generally underwritten to secondary market lending standards, utilizing underwriting processes that rely on empirical data to assess credit risk as well as analysis of the borrower's ability to repay their obligations, credit history, the amount of any down payment and the market value or other characteristics of the property. First Financial also offers a residential mortgage product that features similar borrower credit characteristics but a more streamlined underwriting process than typically required to sell to government-sponsored enterprises and thus is retained on the Consolidated Balance Sheets.

The residential real estate ACL model is adjusted for forecasted changes in mortgage debt service ratio, home sales, and disposable income. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

*Home equity* **–** Home equity lending includes both term loans and revolving lines of credit secured by a first or second lien on the borrower's residence. Home equity lending underwriting considerations include the borrower's credit history as well as debt-to-income and loan-to-value policy limits.

The home equity ACL model is adjusted for forecasted changes in personal bankruptcies and outstanding consumer credit. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

*Installment* – Installment lending consists of consumer loans not secured by real estate, including loans secured by automobiles and unsecured personal loans.

The installment ACL model is adjusted for forecasted changes in outstanding consumer credit and CPI. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

*Credit card* – Credit card lending consists of secured and unsecured revolving lines of credit to consumer and business customers. Credit card lines are generally available for an indefinite period of time as long as the borrower's credit characteristics do not materially or adversely change, but lines are unconditionally cancellable by the Company at any time.

The credit card ACL model is adjusted for forecasted changes in prime rate, outstanding consumer credit and household mortgage debt service ratio. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

The Company utilized the Moody's December baseline forecast as its R&S forecast in the quantitative model. For reasonableness, the Company also considered the impact to the model from alternative, more adverse economic forecasts, and alternative prepayment speeds. These alternative analyses were utilized to inform the Company's qualitative adjustments. Additionally, First Financial considered its credit exposure to certain industries believed to be at risk for future credit stress, such as franchise, office, hotel and investor commercial real estate lending when making qualitative adjustments to the ACL model.

First Financial's ACL is influenced by loan volumes, risk rating migration or delinquency status, and other conditions impacting loss expectations, such as reasonable and supportable forecasts of economic conditions. For the twelve months ended December 31, 2025, the ACL increased primarily due to the Westfield acquisition and organic loan growth. In accordance with the early adoption of ASU 2025-08 the Company recorded a $23.7 million increase to the ACL with a corresponding increase to Goodwill to account for the expected losses on loans acquired from Westfield. For additional detail regarding the impact of

**78 First Financial Bancorp** 2025 Annual Report

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the Westfield acquisition on the ACL and the early adoption of ASU 2025-08, see Note 2 - Accounting Standards Recently Adopted or Issued.

Changes in the allowance by loan category as of December 31 were as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 |
| *(Dollars in thousands)* | Commercial & industrial | Lease financing | Construction real estate | Commercial real estate | Residential real estate | Home equity | Installment | Credit card | Total |
| **Allowance for credit losses** |  |  |  |  |  |  |  |  |  |
| Balance at beginning of year | $49987 | $13079 | $19216 | $35721 | $17822 | $14774 | $3564 | $2628 | $156791 |
| Initial allowance on purchased loans | 14084 | 0 | 876 | 3183 | 3352 | 697 | 1460 | 0 | 23652 |
| Provision for credit losses | 32108 | 4827 | (2896) | 1786 | (3060) | 508 | 1112 | 2140 | 36525 |
| Gross charge-offs | (21975) | (3276) | (245) | (3538) | (167) | (373) | (4832) | (2269) | (36675) |
| Recoveries | 951 | 532 | 0 | 1237 | 137 | 429 | 2570 | 338 | 6194 |
| &nbsp;&nbsp;&nbsp;Total net charge-offs | (21024) | (2744) | (245) | (2301) | (30) | 56 | (2262) | (1931) | (30481) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Ending allowance for credit losses** | $75155 | $15162 | $16951 | $38389 | $18084 | $16035 | $3874 | $2837 | $186487 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
| *(Dollars in thousands)* | Commercial & industrial | Lease financing | Construction real estate | Commercial real estate | Residential real estate | Home equity | Installment | Credit card | Total |
| **Allowance for credit losses** |  |  |  |  |  |  |  |  |  |
| Balance at beginning of year | $44319 | $12365 | $11003 | $34903 | $18088 | $13322 | $4888 | $2545 | $141433 |
| Provision for credit losses | 17705 | 4018 | 8213 | 11232 | (229) | 1239 | 4852 | 2181 | 49211 |
| Gross charge-offs | (14648) | (3392) | 0 | (10633) | (143) | (447) | (7460) | (2586) | (39309) |
| Recoveries | 2611 | 88 | 0 | 219 | 106 | 660 | 1284 | 488 | 5456 |
| &nbsp;&nbsp;&nbsp;Total net charge-offs | (12037) | (3304) | 0 | (10414) | (37) | 213 | (6176) | (2098) | (33853) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Ending allowance for credit losses** | $49987 | $13079 | $19216 | $35721 | $17822 | $14774 | $3564 | $2628 | $156791 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 |
| *(Dollars in thousands)* | Commercial & industrial | Lease financing | Construction real estate | Commercial real estate | Residential real estate | Home equity | Installment | Credit card | Total |
| **Allowance for credit losses** |  |  |  |  |  |  |  |  |  |
| Balance at beginning of year | $42313 | $3571 | $13527 | $41106 | $12684 | $12447 | $4945 | $2384 | $132977 |
| Provision for credit losses | 19647 | 13162 | (2524) | (3) | 5196 | 600 | 5944 | 1052 | 43074 |
| Gross charge-offs | (19175) | (4423) | 0 | (8723) | (39) | (340) | (6442) | (1173) | (40315) |
| Recoveries | 1534 | 55 | 0 | 2523 | 247 | 615 | 441 | 282 | 5697 |
| &nbsp;&nbsp;&nbsp;Total net charge-offs | (17641) | (4368) | 0 | (6200) | 208 | 275 | (6001) | (891) | (34618) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Ending allowance for credit losses** | $44319 | $12365 | $11003 | $34903 | $18088 | $13322 | $4888 | $2545 | $141433 |

---

**Allowance for credit losses - unfunded commitments.** First Financial estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases.

First Financial determined the adequacy of this reserve based upon an evaluation of the unfunded credit facilities, which included consideration of historical commitment utilization experience, credit risk ratings and historical loss rates, consistent with the Company's ACL methodology at the time.

The ACL on unfunded commitments was $20.2 million as of December 31, 2025 and included $2.2 million recorded in conjunction with the Westfield acquisition. The ACL on unfunded commitments was $16.9 million as of December 31, 2024.

First Financial recorded $1.1 million of provision expense related to the ACL on unfunded commitments for the twelve months ended December 31, 2025 and $1.6 million of provision recapture related to the ACL on unfunded commitments for the twelve months ended December 31, 2024. Provision expense for unfunded commitments was immaterial for the twelve months ended December 31, 2023.

**First Financial Bancorp** 2025 Annual Report **79**

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**Notes to Consolidated Financial Statements**

**7. Premises and Equipment**

Premises and equipment at December 31 were as follows:

---

| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | 2025 | 2024 |
| Land and land improvements | $45786 | $47670 |
| Buildings | 176283 | 167013 |
| Furniture and fixtures | 82701 | 77363 |
| Leasehold improvements | 32747 | 31953 |
| Construction in progress | 14007 | 9532 |
|  | 351524 | 333531 |
| Less: Accumulated depreciation and amortization | 146764 | 135566 |
| **Total** | $204760 | $197965 |

---

Depreciation expense recorded on premises and equipment in 2025, 2024 and 2023 was $14.0 million, $14.4 million and $13.3 million, respectively.

**8. Leases - Lessee**

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. For contracts where First Financial is a lessee, the recipient of the right to control, substantially all of those agreements are for real estate property for branches, ATM locations and office space.

Substantially all of the Company's leases are classified as operating leases. Under Accounting Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as a ROU asset and a corresponding lease liability. The Company's right to use an asset over the life of a lease is recorded as a ROU asset in Accrued interest and other assets on the Consolidated Balance Sheet and was $48.6 million and $49.9 million at December 31, 2025 and 2024, respectively. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. First Financial recorded a $58.1 million and $59.8 million lease liability in Accrued interest and other liabilities on the Consolidated Balance Sheets at December 31, 2025 and 2024, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet and First Financial recognizes lease expense for these leases on a straight-line basis over the term of the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of renewal options on operating leases is at the Company's sole discretion, and certain leases may include options to purchase the leased property. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. First Financial does not enter into lease agreements which contain material residual value guarantees or material restrictive covenants.

Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements and leases generally also include real estate taxes and common area maintenance charges in the annual rental payments.

**80 First Financial Bancorp** 2025 Annual Report

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The components of lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | December 31, 2025 | December 31, 2024 | December 31, 2023 |
| Operating lease cost | $7993 | $8095 | $7773 |
| Finance lease cost |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 101 | 110 | 110 |
| &nbsp;&nbsp;&nbsp;Interest on lease liabilities | 52 | 58 | 62 |
| Variable lease cost | 3119 | 3109 | 3107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating lease cost** | $11265 | $11372 | $11052 |

---

Future minimum commitments due under these lease agreements as of December 31, 2025 are as follows:

---

| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | Operating leases | Finance leases |
| 2026 | $9103 | $152 |
| 2027 | 8643 | 154 |
| 2028 | 8347 | 159 |
| 2029 | 7776 | 160 |
| 2030 | 7421 | 111 |
| Thereafter | 30219 | 697 |
| &nbsp;&nbsp;&nbsp;Total lease payments | 71509 | 1433 |
| &nbsp;&nbsp;&nbsp;Less: imputed interest | (13397) | (284) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $58112 | $1149 |

---

The weighted average lease term and discount rate for the Company's operating leases were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2024 | December 31, 2023 |
| **Operating leases** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | $48647 | $49895 | $54233 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 58112 | 59801 | 64484 |
| **Finance leases** |  |  |  |
| &nbsp;&nbsp;&nbsp;Premises and equipment | 910 | 1284 | 1394 |
| &nbsp;&nbsp;&nbsp;Long-term debt | 1149 | 1520 | 1611 |
| **Weighted-average remaining lease term** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 10.7 years | 11.5 years | 12.3 years |
| &nbsp;&nbsp;&nbsp;Finance leases | 10.2 years | 11.8 years | 12.8 years |
| **Weighted-average discount rate** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 3.53% | 3.48% | 3.43% |
| &nbsp;&nbsp;&nbsp;Finance leases | 4.42% | 3.85% | 3.84% |

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**First Financial Bancorp** 2025 Annual Report **81**

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Supplemental cash information at year end related to leases was as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | December 31, 2025 | December 31, 2024 | December 31, 2023 |
| **Cash paid for amounts included in the measurement of lease liabilities** | **Cash paid for amounts included in the measurement of lease liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $8520 | $8441 | $7819 |
| &nbsp;&nbsp;&nbsp;Operating cash flows from finance leases | 52 | 58 | 62 |
| &nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | 99 | 91 | 87 |
| **ROU assets obtained in exchange for lease obligations** | **ROU assets obtained in exchange for lease obligations** |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 4749 | 1552 | 6585 |
| &nbsp;&nbsp;&nbsp;Finance leases | (272) | 0 | 0 |

---

**9. Operating Leases - Lessor**

First Financial provides financing for various types of equipment through a variety of leasing arrangements. Operating leases are carried at cost less accumulated depreciation in the Consolidated Balance Sheets. Operating leases were $214.0 million and $209.1 million at December 31, 2025 and December 31, 2024, respectively, net of accumulated depreciation of $151.4 million and $93.6 million at December 31, 2025 and December 31, 2024, respectively. The Company recorded lease income of $75.3 million, $54.6 million and $39.8 million related to lease payments for operating leases in leasing business income in the Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023, respectively. Depreciation expense related to operating lease equipment was $53.7 million, $44.3 million and $32.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Depreciation expense related to operating lease equipment is included in Leasing business expense in the Consolidated Statements of Income.

First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. First Financial recognized no impairment losses associated with operating lease assets for the twelve months ended December 31, 2025, 2024 or 2023. Recognized impairment losses, if any, would be recorded in Leasing business expense in the Consolidated Statements of Income.

The future lease payments receivable from operating leases as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Undiscounted cash flows |
| 2026 | $66976 |
| 2027 | 49282 |
| 2028 | 29412 |
| 2029 | 16502 |
| 2030 | 7143 |
| Thereafter | 1437 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total operating lease payments** | $170752 |

---

**82 First Financial Bancorp** 2025 Annual Report

------

**10. Goodwill and Other Intangible Assets**

**Goodwill.** Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess of the purchase price of the acquisition over the fair value of net assets acquired is recorded as goodwill.

Changes in the carrying amount of goodwill for the years ended December 31, 2025, 2024 and 2023 are shown below.

---

| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Balance at beginning of year | $1007656 | $1005868 | $1001507 |
| Goodwill resulting from business combinations | 91868 | 1788 | 4361 |
| &nbsp;&nbsp;&nbsp;**Balance at end of year** | $1099524 | $1007656 | $1005868 |

---

In the fourth quarter of 2025, First Financial recorded $91.9 million of goodwill related to the acquisition of Westfield Bancorp, Inc., an Ohio corporation. Upon completion of the transaction, Westfield Bank, FSB, a federal savings bank, and a wholly owned subsidiary of Westfield Bancorp, merged into First Financial Bank. This acquisition supplements First Financial's existing commercial banking and wealth management presence in Northeast Ohio by adding all of Westfield's retail banking locations and its commercial lending, insurance agency lending and private banking services. The measurement period for recording adjustments to the fair value of assets and liabilities acquired in the Westfield acquisition ends in November 2026.

In the first quarter of 2024, First Financial recorded $1.8 million of goodwill related to the acquisition of Agile Premium Finance. Agile specializes in lending to commercial customers to finance insurance premiums. These loans are generally secured by the unearned premiums on the underlying insurance policies and are typically short in duration. This acquisition is consistent with First Financial's approach of adding niche financial services to its line-up of core banking services and will complement First Financial's existing specialty lending business. The measurement period for recording adjustments to the fair value of assets and liabilities acquired in the Agile acquisition ended in February 2025.

In the first quarter of 2023, First Financial recorded $4.2 million of goodwill related to the acquisition of the assets of Brady Ware Capital. Brady Ware Capital specializes in buy-side and sell-side consulting services for mid-sized businesses. Similar to Agile, this acquisition is consistent with First Financial's approach of adding niche financial services to further expand its broad service offerings. In May 2023, First Financial also acquired Brady Ware Corporate Finance, a broker-dealer and member of FINRA. First Financial recorded $0.1 million of goodwill in connection with the acquisition of Brady Ware Corporate Finance. The measurement period for recording adjustments to the fair value of assets and liabilities ended in January 2024 for Brady Ware Capital and in May 2024 for Brady Ware Corporate Finance.

Goodwill is evaluated for impairment on an annual basis as of October 1 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. First Financial performed its most recent annual qualitative impairment test as of October 1, 2025 and no impairment was indicated. As of December 31, 2025, no events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value.

**Other intangible assets.** Other intangible assets consist primarily of core deposit intangibles, customer lists, mortgage servicing rights and other miscellaneous intangibles, such as purchase commissions, non-compete agreements and trade name intangibles.

Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis over their estimated useful lives. First Financial recorded a $47.1 million CDI in conjunction with the Westfield transaction during 2025. At December 31, 2025, First Financial's core deposit intangibles have an estimated weighted average remaining life of 8.9 years.

First Financial recorded a customer list intangible asset in conjunction with the Agile, Summit and Bannockburn acquisitions to account for the obligation or advantage on the part of either the Company or the customer to continue the pre-existing relationship subsequent to the merger. These customer list intangibles are being amortized on a straight-line basis over their estimated useful lives. The Agile customer list was $2.3 million and $2.5 million at December 31, 2025 and December 31, 2024, respectively, and is being amortized over an estimated remaining life of 11.2 years. The Summit customer list was $20.1 million and $22.6 million at December 31, 2025 and December 31, 2024, respectively, and is being amortized over an estimated remaining life of 8.0 years. The Bannockburn customer list was $16.7 million and $20.3 million at December 31, 2025 and December 31, 2024, respectively, and is being amortized over an estimated remaining life of 4.7 years.

**First Financial Bancorp** 2025 Annual Report **83**

------

**Notes to Consolidated Financial Statements**

Mortgage servicing rights represent the value of servicing fees First Financial expects to receive from the servicing responsibilities it retains when selling fixed and adjustable-rate residential mortgage loans. In those sales, First Financial retains servicing responsibilities and provides certain standard representations and warranties; however, the investors have no recourse to the Company's other assets for failure of debtors to pay when due. First Financial receives servicing fees based on a percentage of the outstanding balance. When First Financial sells mortgage loans with servicing rights retained, these servicing rights are initially recorded at estimated fair value. First Financial has selected the "amortization method" as permissible within GAAP, whereby the servicing rights capitalized are amortized in proportion to and over the period of estimated future servicing income with respect to the underlying loan. At the conclusion of each reporting period, the carrying amount of the MSR is evaluated for impairment by comparing it to its fair value. Based on this comparison, no valuation allowance was required. MSR are recorded at the lower of their amortized cost or fair value. The amortization of MSR is included within other noninterest income in the Consolidated Statements of Income.

Amortization expense recognized on intangible assets for 2025, 2024 and 2023 was $15.3 million, $13.1 million and $13.4 million, respectively, which includes MSR amortization of $4.3 million, $3.6 million and $3.0 million, respectively.

The gross carrying amount and accumulated amortization of other intangible assets were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| *(Dollars in thousands)* | Gross<br>carrying<br>amount | Accumulated<br>amortization | Gross<br>carrying<br>amount | Accumulated<br>amortization |
| Amortized intangible assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Core deposit intangibles | $88814 | $(36777) | $41750 | $(32302) |
| &nbsp;&nbsp;&nbsp;Customer list | 72278 | (33127) | 72278 | (26822) |
| &nbsp;&nbsp;&nbsp;Other | 9269 | (3654) | 9381 | (3416) |
| &nbsp;&nbsp;&nbsp;Mortgage servicing rights | 33013 | (10984) | 27217 | (8795) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $203374 | $(84542) | $150626 | $(71335) |

---

The estimated amortization expense of intangible assets for the next five years is as follows:

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Intangible amortization |
| 2026 | $18429 |
| 2027 | 16539 |
| 2028 | 12874 |
| 2029 | 9713 |
| 2030 | 8519 |

---

**84 First Financial Bancorp** 2025 Annual Report

------

**11. Deposits**

Time deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2025 and 2024 were $494.8 million and $554.0 million, respectively.

Scheduled maturities of all time deposits for the next five years were as follows:

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Time deposits |
| 2026 | $3538246 |
| 2027 | 61139 |
| 2028 | 10939 |
| 2029 | 6233 |
| 2030 | 5443 |
| Thereafter | 227 |
| &nbsp;&nbsp;&nbsp;Total | $3622227 |

---

**12. Borrowings**

On the Consolidated Balance Sheets, short-term borrowings, or borrowings that mature in less than one year, include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, federal funds purchased, overnight advances from the FHLB and a short-term line of credit.

The following is a summary of short-term borrowings for the last three years:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| *(Dollars in thousands)* | Amount | Rate | Amount | Rate | Amount | Rate |
| At December 31, |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;FHLB borrowings | $675000 | 3.91% | $625000 | 4.63% | $800000 | 5.47% |
| &nbsp;&nbsp;&nbsp;Other short-term borrowings | 332 | 3.64% | 130452 | 4.33% | 137814 | 5.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $675332 | 3.91% | $755452 | 4.58% | $937814 | 5.45% |
| Average for the year |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal funds purchased and securities sold under agreements to repurchase | $5408 | 4.71% | $4522 | 5.63% | $15583 | 5.25% |
| &nbsp;&nbsp;&nbsp;FHLB borrowings | 506541 | 4.51% | 588987 | 5.47% | 845666 | 5.25% |
| &nbsp;&nbsp;&nbsp;Other short-term borrowings | 39968 | 4.36% | 119361 | 5.33% | 158221 | 5.18% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $551917 | 4.50% | $712870 | 5.45% | $1019470 | 5.24% |

---

All repurchase agreements are subject to terms and conditions agreed to by the Bank and the client. To secure its liability to the client, the Bank is authorized to sell or repurchase U.S. Treasury, government agency and mortgage-backed securities. As of both December 31, 2025 and 2024, the Bank had no securities sold under agreements to repurchase.

First Financial had outstanding FHLB advances included in short-term borrowings of $675.0 million as of December 31, 2025 and $625.0 million outstanding short-term FHLB advances as of December 31, 2024. Additionally, at December 31, 2025 and 2024, other short-term borrowings included $0.3 million and $130.5 million, respectively, of collateral owed to counterparty banks by First Financial.

**First Financial Bancorp** 2021 Annual Report **85**

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**Notes to Consolidated Financial Statements**

First Financial also has a $40.0 million short-term credit facility with an unaffiliated bank that matures in December, 2026, which is included in short-term borrowings. This facility has a variable interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of both December 31, 2025 and December 31, 2024, First Financial had no outstanding balance on this facility. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of both December 31, 2025 and December 31, 2024. This credit facility also required First Financial to pledge as collateral the Bank's common stock where the lender is granted a security interest in this collateral.

The following is a summary of First Financial's long-term debt:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2024 | 2024 |
| *(Dollars in thousands)*  | Amount | Average Rate | Amount | Average Rate |
| &nbsp;&nbsp;Subordinated debt | $495077 | 7.19% | $314619 | 5.43% |
| &nbsp;&nbsp;Unamortized debt issuance costs | (5204) | n/a | (1227) | n/a |
| &nbsp;&nbsp;Notes issued in conjunction with acquisition of property and equipment | 23030 | 5.38% | 31822 | 4.95% |
| &nbsp;&nbsp;Capital lease liability | 1149 | 4.42% | 1520 | 3.85% |
| &nbsp;&nbsp;Capital loan with municipality | 0 | 0.00% | 775 | 0.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total long-term debt** | $514052 | 7.18% | $347509 | 5.39% |

---

As of December 31, 2025, First Financial's long-term debt matures as follows:

---

| | |
|:---|:---|
| *(Dollars in thousands)*  | Long-term debt |
| 2026 | $1557 |
| 2027 | 7600 |
| 2028 | 5430 |
| 2029 | 6244 |
| 2030 | 196921 |
| Thereafter | 296300 |
| &nbsp;&nbsp;&nbsp;**Total** | $514052 |

---

In 2015, First Financial issued $120.0 million of subordinated notes, which had a fixed interest rate of 5.13% payable semiannually and matured in August 2025. These matured notes were redeemed by the Company in 2025 and therefore are not included in the Consolidated Balance Sheet as of December 31, 2025.

In April 2020, First Financial issued $150.0 million of fixed to floating rate subordinated notes. The subordinated notes have an initial fixed interest rate of 5.25% to, but excluding, May 15, 2025, payable semi-annually in arrears. From, and including, May 15, 2025, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which was the then-current three-month term SOFR, plus 509 basis points, payable quarterly in arrears. These subordinated notes mature on May 15, 2030 and are redeemable by the Company in whole or in part beginning with the interest payment date of May 15, 2025. This subordinated debt issued in April 2020 that matures in May 2030, is eligible to be treated as Tier 2 capital for 80% of its original issuance amount at December 31, 2025 for regulatory capital purposes.

In November 2025, First Financial issued $300.0 million of fixed to floating rate subordinated notes. These subordinated notes have an initial fixed interest rate of 6.375% to, but excluding, December 1, 2030, payable semi-annually in arrears. From, and including, December 1, 2030, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term SOFR, plus 300 basis points, payable quarterly in arrears. These subordinated notes mature on December 1, 2035 and are redeemable by the Company in whole or in part beginning with the interest payment date of December 1, 2030. The subordinated debt issued in November 2025 that matures in December 2035 is eligible to be treated as Tier 2 capital for 100% of its original issuance amount at December 31, 2025 for regulatory capital purposes.

In addition, First Financial acquired $49.5 million of variable rate subordinated notes in the MSFG merger that were issued to previously formed trusts in exchange for the trust proceeds. These notes were recorded at fair value at the date of the MSFG

**86 First Financial Bancorp** 2025 Annual Report

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merger and the Consolidated Balance Sheets include $45.1 million and $44.6 million for these notes at December 31, 2025 and December 31, 2024, respectively. Interest on the acquired subordinated notes is payable quarterly, in arrears, and the Company has the option to defer interest payments for a period not to exceed 20 consecutive quarters. These acquired subordinated notes mature 30 years after the date of original issuance and may be called at par following the 5 year anniversary of issuance. These variable rate subordinated notes are callable as of December 31, 2025 and are treated as Tier 1 capital for regulatory capital purposes.

Additionally, long-term borrowings included $23.0 million and $31.8 million of term notes, both with and without recourse, with an average interest rate of 5.38% and 4.95% at December 31, 2025 and 2024, respectively. These term notes were used to finance Summit's equity investment in the purchase of equipment to be leased to customers.

**13. Derivatives**

First Financial maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, First Financial holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Company does not enter into unhedged speculative derivative positions. The Company's interest rate risk management strategy involves modifying the repricing characteristics of certain financial instruments so that changes in interest rates do not adversely affect First Financial's net interest margin and cash flows. Derivative instruments that the Company may use as part of its interest rate risk management strategy include interest rate caps, floors, swaps, and foreign exchange contracts, to meet the needs of its clients while managing the interest and currency rate risk associated with certain transactions. First Financial may also utilize interest rate swaps to manage the interest rate risk profile of the Company. The impact from the changes in the fair value of derivatives in cash flow hedging arrangements is reported within Accumulated other comprehensive income (loss).

Interest rate payments are exchanged with counterparties based on the notional amount established in the interest rate agreement. As only interest rate payments are exchanged, the cash requirements and credit risk associated with interest rate swaps are significantly less than the notional amounts and the Company's credit risk exposure is limited to the market value of the instruments. First Financial does not use derivatives for speculative purposes.

First Financial manages this market value credit risk through counterparty credit policies including a review of total derivative notional position to total assets, total credit exposure to total capital and counterparty credit exposure risk.

The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy the obligations under the agreements. All of the contracts to which the Company is a party settle monthly, quarterly or semi-annually. In addition, First Financial obtains collateral above certain thresholds of the fair value of derivatives for each dealer counterparty based upon their credit standing, and the Company has netting agreements with the dealers with which it does business.

For discussion of First Financial's accounting for derivative instruments, see Note 1 – Summary of Significant Accounting Policies.

**Interest rate client derivatives.** First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Client derivative fees in the Consolidated Statements of Income. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes.

At December 31, 2025, for interest rate derivatives, the Company had a total counterparty notional amount outstanding of $2.4 billion, spread among seven counterparties, with an estimated fair value of $24.7 million. At December 31, 2024, the Company had interest rate derivatives with a total counterparty notional amount outstanding of $2.2 billion, spread among six counterparties, with an estimated fair value of $91.7 million.

First Financial monitors its derivative credit exposure to borrowers by monitoring the creditworthiness of the related loan

customers through the Company's normal credit review processes. Additionally, the Company monitors derivative credit risk exposure related to problem loans through the its ACL committee. First Financial considers the market value of a derivative instrument to be part of the carrying value of the related loan for these purposes as the borrower is contractually obligated to pay First Financial this amount in the event the derivative contract is terminated.

**First Financial Bancorp** 2025 Annual Report **87**

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**Notes to Consolidated Financial Statements**

In connection with its use of derivative instruments, First Financial and its counterparties may be required to post cash collateral to offset the market position of the derivative instruments. First Financial maintains the right to offset these derivative positions with the collateral posted against them by or with the relevant counterparties.

**Foreign exchange contracts.** First Financial enters into foreign exchange derivative contracts for the benefit of commercial customers to hedge their exposure to foreign currency fluctuations. Similar to the hedging of interest rate risk from interest rate client derivative contracts, First Financial also enters into foreign exchange contracts with major financial institutions to economically hedge a substantial portion of the exposure from client driven foreign exchange activity. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Foreign exchange income in the Consolidated Statements of Income. The Company has internal controls and client credit risk limits in place to help ensure excessive risk is not being taken when providing this service to customers. These controls include a determination of currency volatility and credit equivalent exposure on these contracts. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes.

At December 31, 2025, for foreign exchange contracts, the Company had total counterparty notional amount outstanding of $8.3 billion spread among four counterparties, with an estimated fair value of $1.1 million related to foreign exchange contracts, which is included in Accrued interest and other liabilities in the Consolidated Balance Sheets. At December 31, 2024, the Company had total counterparty notional amounts outstanding of $5.8 billion spread among four counterparties, with an estimated fair value of $29.0 million.

In connection with its use of foreign exchange contracts, First Financial and its counterparties may be required to post cash collateral to offset the market position of the derivative instruments. First Financial maintains the right to offset these derivative positions with the collateral posted against them by or with the relevant counterparties.

In 2024, a single foreign exchange trade was mutually terminated and the counterparty was not able to immediately fully satisfy the obligation under the agreement. As such, at December 31, 2024, a $45.0 million receivable was established in Accrued interest and other assets on the Consolidated Balance Sheet, and the Company considers this receivable a classified asset for asset quality purposes. At December 31, 2025, there was $37.0 million outstanding related to this receivable.

**Commodity contracts.** In August of 2024, First Financial began entering into financially settled commodity derivative contracts for the benefit of commercial customers to hedge their exposure to various commodity price fluctuations. Similar to the hedging of interest rate risk from interest rate client derivative and foreign exchange contracts, First Financial also enters into commodity contracts with major financial institutions to economically hedge a substantial portion of the exposure from client driven commodity derivative activity. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Client derivative fees in the Consolidated Statements of Income. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken when providing this service to customers. These controls include monitoring of commodity volatility and credit exposure on these contracts. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes.

At December 31, 2025, for commodities contracts, the Company had total counterparty notional amount outstanding of $24.3 million with six counterparties and an estimated fair value of $0.4 million.

At December 31, 2024, for commodities contracts, the Company had total counterparty notional amount outstanding of $1.7 million with three counterparties and an estimated fair value of $0.2 million.

**Cash flow hedges**. First Financial enters into interest rate collars and floors, which are designated as cash flow hedges, to mitigate interest rate risk on variable-rate commercial loan pools. As of both December 31, 2025 and December 31, 2024, these hedges were determined to be effective and are expected to remain effective during the remaining terms. Changes in the fair value of cash flow hedges included in the assessment of hedge effectiveness are recorded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings. Reclassified gains and losses on interest rate contracts related to C&I loans are recorded within interest income in the Consolidated Statements of Income.

The structure of the interest rate collars is such that First Financial pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, First Financial receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index is between the cap and floor rates.

The structure of First Financial's interest rate floors is such that First Financial receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate.

**88 First Financial Bancorp** 2025 Annual Report

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The notional value of the Company's cash flow hedges was $1.0 billion as of December 31, 2025, with the $0.1 million gain recorded in AOCI in the Consolidated Balance Sheet. As of December 31, 2025, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 36 months. It is estimated that $0.7 million will be reclassified from OCI to interest income during the next 12 months.

At December 31, 2024, the notional value of the Company's cash flow hedges was $1.0 billion, with a $1.2 million loss recorded in AOCI in the Consolidated Balance Sheet. As of December 31, 2024, the maximum length of time over which the Company was hedging its exposure to the variability in future cash flows was 48 months.

The effect of derivative instruments in cash flow hedging relationships on the Consolidated Statements of Income were as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Derivatives in Cash Flow Hedging Relationship** | **Location of Gain or (Loss) Reclassified from AOCI into income** | **Gain (loss) reclassified in AOCI on Derivatives** | **Gain (loss) reclassified in AOCI on Derivatives** | **Gain (loss) reclassified in AOCI on Derivatives** | **Gain (loss) recognized in OCI on Derivatives** | **Gain (loss) recognized in OCI on Derivatives** | **Gain (loss) recognized in OCI on Derivatives** |
| *(Dollars in thousands)* |  | December 31, 2025 | December 31, 2024 | December 31, 2023 | December 31, 2025 | December 31, 2024 | December 31, 2023 |
| Interest rate contracts | Interest income/(expense) | $(795) | $(795) | $(237) | $1270 | $(1176) | $3755 |

---

The following table details the classification and amounts of interest rate derivatives, foreign exchange contracts and cash flow hedges recognized in the Consolidated Balance Sheets:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | | Estimated fair value | Estimated fair value | | Estimated fair value | Estimated fair value |
| *(Dollars in thousands)* | Notional<br>amount | Gain <sup>(1)</sup> | Loss <sup>(2)</sup> | Notional<br>amount | Gain <sup>(1)</sup> | Loss <sup>(2)</sup> |
| **Derivatives not designated as qualifying hedging instruments** |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate derivatives-instruments associated with loans <sup>(3)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Matched interest rate swaps with borrower | $2425106 | $23271 | $(46159) | $2211542 | $6849 | $(95341) |
| &nbsp;&nbsp;&nbsp;&nbsp;Matched interest rate swaps with counterparty | 2425106 | 46138 | (23243) | 2211542 | 95292 | (6849) |
| &nbsp;&nbsp;Foreign exchange contracts <sup>(4)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Matched foreign exchange contracts with customers | 8368518 | 161649 | (160523) | 5772686 | 161686 | (132732) |
| &nbsp;&nbsp;&nbsp;&nbsp;Matched foreign exchange contracts with counterparty | 8318982 | 160523 | (161649) | 5741839 | 132732 | (161686) |
| &nbsp;&nbsp;Commodity contracts<sup>(5)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Matched commodity with client | 24180 | 909 | (994) | 1717 | 0 | (158) |
| &nbsp;&nbsp;&nbsp;&nbsp;Matched commodity with counterparty | 24269 | 669 | (1084) | 1701 | 158 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total derivatives not designated as qualifying hedging instruments** | 21586161 | 393159 | (393652) | 15941027 | 396717 | (396766) |
| **Derivatives designated as qualifying hedging instruments** |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash flow hedges <sup>(6)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate collars and floors | 1000000 | 708 | 0 | 1000000 | 387 | (619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total derivatives designated as qualifying hedging instruments** | 1000000 | 708 | 0 | 1000000 | 387 | (619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $22586161 | $393867 | $(393652) | $16941027 | $397104 | $(397385) |

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<sup>(1)</sup> Derivative assets are included in Accrued interest and other assets in the Consolidated Balance Sheets.

<sup>(2)</sup> Derivative liabilities are included in Accrued interest and other liabilities in the Consolidated Balance Sheets.

<sup>(3)</sup> Changes in fair value are included in Client derivative fees in the Consolidated Statements of Income.

<sup>(4)</sup> Changes in fair value are included in Foreign exchange income in the Consolidated Statements of Income.

<sup>(5)</sup> Changes in fair value are included in Client derivative fees in the Consolidated Statements of Income.

<sup>(6)</sup> Changes in fair value are included in Accumulated comprehensive income in the Consolidated Balance sheets.

**First Financial Bancorp** 2025 Annual Report **89**

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**Notes to Consolidated Financial Statements**

The following table discloses the gross and net amounts of derivative contracts recognized in the Consolidated Balance Sheets:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | | | | Gross Amounts Not offset in Consolidated Balance Sheet | Gross Amounts Not offset in Consolidated Balance Sheet | |
| *(Dollars in thousands)* | Gross amounts of recognized assets <sup>(2)</sup> | Gross amounts offset in the Consolidated Balance Sheets | Net amounts presented in the Consolidated Balance Sheets | Financial instruments recognized amounts | Cash or financial instrument collateral <sup>(3)</sup> | Net amount |
| Interest rate contracts <sup>(1)</sup> | $69409 | $0 | $69409 | $(43607) | $(12660) | $13142 |
| Foreign exchange contracts | 371710 | 0 | 371710 | (126506) | 0 | 245204 |
| Commodity contracts | 1578 | 0 | 1578 | (670) | 0 | 908 |
| Cash flow hedges | 708 | 0 | 708 | 0 | (708) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $443405 | $0 | $443405 | $(170783) | $(13368) | $259254 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | | | | | Gross Amounts Not offset in Consolidated Balance Sheet | Gross Amounts Not offset in Consolidated Balance Sheet | Gross Amounts Not offset in Consolidated Balance Sheet | |
| *(Dollars in thousands)* | Gross amounts of recognized liabilities <sup>(2)</sup> |  | Gross amounts offset in the Consolidated Balance Sheets | Net amounts presented in the Consolidated Balance Sheets | Financial instruments recognized amounts |  | Cash or financial instrument collateral <sup>(3)</sup> | Net amount |
| Interest rate contracts <sup>(1)</sup> | $69402 |  | $0 | $69402 | $(24594) |  | $0 | $44808 |
| Foreign exchange contracts | 322172 |  | 0 | 322172 | (126506) |  | (5894) | 189772 |
| Commodity contracts | 2078 |  | 0 | 2078 | (670) |  | (462) | 946 |
| Cash flow hedges | 0 |  | 0 | 0 | 0 |  | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $393652 | 393652000 | $0 | $393652 | $(151770) | -151770000 | $(6356) | $235526 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | | | | Gross Amounts Not offset in Consolidated Balance Sheet | Gross Amounts Not offset in Consolidated Balance Sheet | |
| *(Dollars in thousands)* | Gross amounts of recognized assets <sup>(2)</sup> | Gross amounts offset in the Consolidated Balance Sheets | Net amounts presented in the Consolidated Balance Sheets | Financial instruments recognized amounts | Cash or financial instrument collateral <sup>(3)</sup> | Net amount |
| Interest rate contracts <sup>(1)</sup> | $102141 | $0 | $102141 | $(721) | $(98510) | $2910 |
| Foreign exchange contracts | 325266 | 0 | 325266 | (131530) | 0 | 193736 |
| Commodity contracts | 174 | 0 | 174 | 0 | 0 | 174 |
| Cash flow hedges | 387 | 0 | 387 | (387) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $427968 | $0 | $427968 | $(132638) | $(98510) | $196820 |

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**90 First Financial Bancorp** 2025 Annual Report

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | | | | Gross Amounts Not offset in Consolidated Balance Sheet | Gross Amounts Not offset in Consolidated Balance Sheet | |
| *(Dollars in thousands)* | Gross amounts of recognized liabilities <sup>(2)</sup> | Gross amounts offset in the Consolidated Balance Sheets | Net amounts presented in the Consolidated Balance Sheets | Financial instruments recognized amounts | Cash or financial instrument collateral <sup>(3)</sup> | Net amount |
| Interest rate contracts <sup>(1)</sup> | $102150 | $0 | $102150 | $(3896) | $0 | $98254 |
| Foreign exchange contracts | 294419 | 0 | 294419 | (115757) | (16976) | 161686 |
| Commodity contracts | 158 | 0 | 158 | 0 | 0 | 158 |
| Cash flow hedges | 619 | 0 | 619 | (387) | 0 | 232 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $397346 | $0 | $397346 | $(120040) | $(16976) | $260330 |
| (1) Includes accrued interest receivable. | (1) Includes accrued interest receivable. |  |  |  |  |  |
| (2) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements | (2) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements | (2) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements | (2) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements | (2) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements |  |  |
| (3) Amount of collateral received is an offset to asset positions or pledged as an offset of liability positions | (3) Amount of collateral received is an offset to asset positions or pledged as an offset of liability positions | (3) Amount of collateral received is an offset to asset positions or pledged as an offset of liability positions | (3) Amount of collateral received is an offset to asset positions or pledged as an offset of liability positions | (3) Amount of collateral received is an offset to asset positions or pledged as an offset of liability positions |  |  |

---

The following table details the derivative financial instruments and the average remaining maturities at December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | Notional<br>amount | Average<br>maturity<br>(years) | Fair<br>value |
| Interest rate contracts |  |  |  |
| &nbsp;&nbsp;&nbsp;Receive fixed, matched interest rate swaps with borrower | $2425106 | 3.6 | $(22888) |
| &nbsp;&nbsp;&nbsp;Pay fixed, matched interest rate swaps with counterparty | 2425106 | 3.6 | 22895 |
| Foreign exchange contracts |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts - pay USD | 8368518 | 0.6 | 1126 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts - receive USD | 8318982 | 0.6 | (1126) |
| Commodities contracts |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Client commodity contracts | 24180 | 0.5 | (85) |
| &nbsp;&nbsp;&nbsp;&nbsp;Counterparty commodity contracts | 24269 | 0.5 | (415) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total client derivatives** | 21586161 | 1.3 | (493) |
| Cash flow hedges |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate collars and floors on loan pools | 1000000 | 1.8 | 708 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total cash flow hedges** | 1000000 | 1.8 | 708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $22586161 | 1.3 | $215 |

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At December 31, 2025, derivative collateral owed to the Company from counterparty banks was $21.6 million with $10.2 million restricted within cash and due from banks on the Company's Consolidated Balance Sheets, $0.3 million recorded in short-term borrowings and $11.7 million in other assets. Derivative collateral owed by the Company to counterparty banks at December 31, 2024 was $115.4 million with $15.0 million restricted within cash and due from banks and $130.5 million recorded in short-term borrowings.

**Credit derivatives.** In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial assumes or sells a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will either make a payment or receive a payment from the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract. The total notional value of the purchased risk agreements totaled $223.5 million as of December 31, 2025 and $204.8 million as of December 31, 2024. The total notional value of the sold risk agreements totaled $111.5 million as of December 31, 2025 and $106.0 million as of December 31, 2024. The net fair value of these agreements is recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets and was insignificant at December 31, 2025 and December 31, 2024.

**First Financial Bancorp** 2025 Annual Report **91**

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**Notes to Consolidated Financial Statements**

**Mortgage Derivatives.** First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure an IRLC with First Financial and the loans are intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and and loans held for sale. At December 31, 2025, the notional amount of the IRLCs was $37.5 million and the notional amount of forward commitments was $39.3 million. As of December 31, 2024, the notional amount of IRLCs was $27.8 million and the notional amount of forward commitments was $22.3 million. The fair value of these agreements was $0.7 million at December 31, 2025 and $0.2 million at December 31, 2024 and was recorded in Accrued interest and other assets on the Consolidated Balance Sheets.

**14. Commitments and Contingencies**

First Financial offers a variety of financial instruments including loan commitments and letters of credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements.

First Financial utilizes the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. First Financial's exposure to credit loss in the event of non-performance by the counterparty is represented by the contractual amounts of those instruments. First Financial estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company in accordance with ASC 326. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated useful life consistent with the Company's ACL methodology for loans and leases. Adjustments to the reserve for unfunded commitments are recorded in Provision for (recapture of) credit losses - unfunded commitments in the Consolidated Statements of Income. First Financial had $20.2 million and $16.9 million of reserves for unfunded commitments recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively.

**Loan commitments.** Loan commitments are agreements to extend credit to a client absent any violation of conditions established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by First Financial upon extension of credit, is based on management's credit evaluation of the client. The collateral held varies, but may include securities, real estate, inventory, plant or equipment. First Financial had commitments to extend credit of $4.5 billion and $3.8 billion at December 31, 2025 and 2024, respectively. As of December 31, 2025, commitments with a fixed interest rate totaled $75.0 million while commitments with variable interest rates totaled $4.4 billion. At December 31, 2024, commitments with a fixed interest rate totaled $69.3 million while commitments with variable interest rates totaled $3.7 billion. First Financial's fixed rate commitments have interest rates ranging from 0.00% to 21.00% and maturities ranging from less than 1 year to 31.6 years for both December 31, 2025 and 2024.

The following table presents by type First Financial's active loan balances and related obligations to extend credit:

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| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| *(dollars in thousands)* | Unfunded commitment | Loan balance | Unfunded commitment | Loan balance |
| Commercial & industrial | $2066620 | $4632241 | $1887965 | $3815858 |
| Lease financing | 0 | 638527 | 0 | 598045 |
| Construction real estate | 680920 | 677339 | 327743 | 779446 |
| Commercial real estate-investor | 204747 | 3246889 | 95810 | 3093384 |
| Commercial real estate-owner | 39973 | 1137667 | 40791 | 968360 |
| Residential real estate | 0 | 1832184 | 76401 | 1462284 |
| Home equity | 1103581 | 1005204 | 1002965 | 849039 |
| Installment | 48606 | 188694 | 33200 | 133051 |
| Credit card | 323281 | 65325 | 285782 | 62311 |
| &nbsp;&nbsp;&nbsp;**Total** | $4467728 | $13424070 | $3750657 | $11761778 |

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**92 First Financial Bancorp** 2025 Annual Report

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**Letters of credit.** 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 of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services. The risk to First Financial arises from its obligation to make payment in the event of the client's contractual default to produce the contracted good or service to a third party. First Financial has issued letters of credit totaling $36.6 million and $25.1 million at December 31, 2025, and 2024, respectively. Management conducts regular reviews of these instruments on an individual client basis.

**Risk participation agreements.** In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial either assumes or sells a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will either make a payment to or receive a payment from the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract. The total notional amount of the risk participation agreements was $335.0 million and $310.7 million at December 31, 2025 and 2024, respectively.

**Affordable housing projects and other tax credit investments.** First Financial is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in Accrued interest and other assets in the Consolidated Balance Sheets, with any unfunded commitments included in Accrued interest and other liabilities in the Consolidated Balance Sheets. As of December 31, 2025, First Financial expects to recover its remaining investments through the use of the tax credits that are generated by the investments.

First Financial adopted ASU 2023-02 effective January 1, 2024, using the modified retrospective basis. This ASU was required for fiscal years beginning after December 15, 2023 and expanded the scope of the proportional amortization method to equity investments beyond LIHTC investments. First Financial has made an accounting policy election to apply PAM to the following tax credit programs: HTC, NMTC, and renewable energy tax credits. For each program that First Financial elected to the apply proportional amortization method, First Financial analyzed each investment individually under the scope criteria to determine if PAM applies. First Financial determined that it was eligible to apply PAM to certain HTC investments, however not every HTC investment qualified under the existing guidance. At the time of adoption, First Financial's existing NMTC and renewable energy tax credits were not eligible to apply PAM. Consistent with the guidance set forth in the ASU, First Financial recorded a $0.6 million adjustment to retained earnings to account for the transition of qualified HTC that transitioned to PAM during the first quarter of 2024.

The following table summarizes First Financial's investments in affordable housing projects and other tax credit investments.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(Dollars in thousands)* | *(Dollars in thousands)* | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| Investment | Accounting Method | Investment | Unfunded commitment | Investment | Unfunded commitment |
| LIHTC | Proportional amortization | $169031 | $81482 | $148942 | $72830 |
| HTC | Proportional amortization | 9874 | 56 | 14077 | 56 |
| HTC | Equity | 8322 | 5855 | 8781 | 6656 |
| NMTC | Equity | 290 | 0 | 1191 | 0 |
| Renewable energy | Equity | 24765 | 15597 | 10571 | 222 |
| &nbsp;&nbsp;Total |  | $212282 | $102990 | $183562 | $79764 |

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**First Financial Bancorp** 2025 Annual Report **93**

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**Notes to Consolidated Financial Statements**

The following tables summarize First Financial's amortization expense and tax benefit recognized in affordable housing projects and other tax credit investments.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | Twelve months ended | Twelve months ended | Twelve months ended | Twelve months ended | Twelve months ended | Twelve months ended |
| *(Dollars in thousands)* | *(Dollars in thousands)* | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2023 | December 31, 2023 |
| Investment | Accounting Method | Amortization expense <sup>(1)</sup> | Tax expense (benefit) recognized <sup>(2)</sup> | Amortization expense <sup>(1)</sup> | Tax expense (benefit) recognized <sup>(2)</sup> | Amortization expense <sup>(1)</sup> | Tax expense (benefit) recognized <sup>(2)</sup> |
| LIHTC | Proportional amortization | $17383 | $(17921) | $15481 | $(15662) | $14545 | $(14563) |
| HTC | Proportional amortization | 4203 | (4132) | 3057 | (4417) | 0 | 0 |
| HTC | Equity | 459 | (406) | 1420 | (403) | 0 | (319) |
| NMTC | Equity | 0 | 0 | 125 | (5) | 415 | (210) |
| Renewable energy | Equity | 676 | (705) | 12851 | (12667) | 0 | 0 |
| &nbsp;&nbsp;Total |  | $22721 | $(23164) | $32934 | $(33154) | $14960 | $(15092) |
| <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. | <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. | <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. | <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. | <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. | <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. | <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. | <sup>(1)</sup> The amortization expense for the LIHTC investments is included in Income tax expense. The amortization expense for the equity method investments is included in other noninterest expense. |
| <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). | <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). | <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). | <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). | <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). | <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). | <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). | <sup>(2)</sup> All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the equity method investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss). |

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**Contingencies/Litigation.** As part of the ordinary course of business, First Financial and its subsidiaries are parties to litigation, including claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, foreclosure interests that are incidental to our regular business activities and other matters. First Financial and its subsidiaries are engaged in various matters of litigation and have a number of unresolved claims pending. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of December 31, 2025. Reserves are established for these various matters of litigation, when appropriate, under FASB ASC Topic 450, *Contingencies*, based in part upon the advice of legal counsel. First Financial had no reserves related to litigation matters as of December 31, 2025 or December 31, 2024.

**15. Related Party Transactions**

Loans to directors, executive officers, principal holders of First Financial's common stock and certain related persons were as follows:

---

| | |
|:---|:---|
| *(Dollars in thousands)* | 2025 |
| Beginning balance | $7710 |
| Additions | 9 |
| Deductions | (3845) |
| &nbsp;&nbsp;&nbsp;**Ending balance** | $3874 |
| &nbsp;&nbsp;&nbsp;**Loans 90 days or more past due** | $0 |

---

Related parties of First Financial, as defined for inclusion in the table above, were clients of, and had transactions with, subsidiaries of First Financial during the periods noted. Similar transactions with related parties may be expected in future periods.

**94 First Financial Bancorp** 2025 Annual Report

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**16. Income Taxes**

All of the Company's income tax expense as reported for the years ended December 31, 2025, 2024, and 2023 is attributable to domestic operations. Income tax expense consisted of the following components:

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| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Current expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $36608 | $15133 | $46800 |
| &nbsp;&nbsp;&nbsp;State | 10150 | 3159 | 2568 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current expense** | 46758 | 18292 | 49368 |
| Deferred expense (benefit) |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | 23964 | 21014 | 11769 |
| &nbsp;&nbsp;&nbsp;State | (5057) | 188 | 1596 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total deferred expense (benefit)** | 18907 | 21202 | 13365 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income tax expense** | $65665 | $39494 | $62733 |

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The difference between the federal income tax rates applied to income before income taxes and the effective rates were due to the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| *(Dollars in thousands)* | Amount | Percent | Amount | Percent | Amount | Percent |
| U.S. federal statutory rate | $67467 | 21.0% | $56348 | 21.0% | $66905 | 21.0% |
| State and local income taxes, net of federal tax effect<sup>(1)</sup> | 4023 | 1.3% | 1676 | 0.6% | 3290 | 1.0% |
| Tax credits |  |  |  |  |  |  |
| &nbsp;&nbsp;Energy related tax credits<sup>(2)</sup> | (1640) | (0.5)% | (9977) | (3.7)% | 0 | 0.0% |
| &nbsp;&nbsp;Low income housing credit<sup>(2)</sup> | (3083) | (1.0)% | (3427) | (1.3)% | (2465) | (0.8)% |
| &nbsp;&nbsp;Other | (531) | (0.2)% | (1702) | (0.6)% | (621) | (0.2)% |
| Nontaxable or nondeductible items |  |  |  |  |  |  |
| &nbsp;&nbsp;Tax-exempt interest, net of TEFRA penalty | (3534) | (1.1)% | (3945) | (1.5)% | (4741) | (1.5)% |
| &nbsp;&nbsp;Other | 2117 | 0.7% | 569 | 0.2% | (313) | (0.1)% |
| Other adjustments | 846 | 0.3% | (48) | 0.0% | 678 | 0.2% |
| &nbsp;&nbsp;&nbsp;**Income tax expense** | $65665 | 20.4% | $39494 | 14.7% | $62733 | 19.7% |

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<sup>(1)</sup> State taxes in Indiana, New York, and California comprise the majority (greater than 50%) of the tax effect in this category for 2025. State taxes in Indiana and Illinois made up the majority of the tax effect in this category for 2024 and 2023.

<sup>(2)</sup> Includes tax credits, investment amortization, and projected tax losses associated with tax-advantaged investments.

**First Financial Bancorp** 2025 Annual Report **95**

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**Notes to Consolidated Financial Statements**

Income taxes paid as of December 31, 2025, 2024, and 2023 were:

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| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Federal | $4866 | $25000 | $5000 |
| State and local |  |  |  |
| &nbsp;&nbsp;New York | 984 | \* | 810 |
| &nbsp;&nbsp;California | 663 | \* | \* |
| &nbsp;&nbsp;Illinois | 625 | \* | 1175 |
| &nbsp;&nbsp;New Jersey | &nbsp;&nbsp;&nbsp;&nbsp;\*  | \* | 655 |
| &nbsp;&nbsp;Tennessee | &nbsp;&nbsp;&nbsp;&nbsp;\*  | \* | 640 |
| &nbsp;&nbsp;All other states | 2075 | 2523 | 1796 |
| Foreign | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | $9213 | $27523 | $10076 |

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\* Jurisdiction below the 5% disclosure threshold for the periods presented.

**96 First Financial Bancorp** 2025 Annual Report

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The major components of the temporary differences that gave rise to deferred tax assets and liabilities at December 31, 2025 and 2024, were as follows:

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| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | 2025 | 2024 |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | $43905 | $35984 |
| &nbsp;&nbsp;&nbsp;Fair value adjustments on business combinations | 2000 | 0 |
| &nbsp;&nbsp;&nbsp;Deferred compensation | 541 | 430 |
| &nbsp;&nbsp;&nbsp;Postretirement benefits other than pension liability | 492 | 502 |
| &nbsp;&nbsp;&nbsp;Accrued stock-based compensation | 2118 | 2701 |
| &nbsp;&nbsp;&nbsp;Interest on nonaccrual loans | 1992 | 398 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 8626 | 7978 |
| &nbsp;&nbsp;Net unrealized losses on investment securities and derivatives | 46279 | 72818 |
| &nbsp;&nbsp;&nbsp;State net operating loss | 4636 | 1462 |
| &nbsp;&nbsp;&nbsp;Leasing liability | 13987 | 14185 |
| &nbsp;&nbsp;&nbsp;Reserve for unfunded commitments | 4749 | 3902 |
| &nbsp;&nbsp;&nbsp;Section 174 capitalized expense | 703 | 1373 |
| &nbsp;&nbsp;&nbsp;Tax credit carryforwards | 1949 | 0 |
| &nbsp;&nbsp;&nbsp;Other | 4585 | 283 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total deferred tax assets** | 136562 | 142016 |
| Deferred tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Tax depreciation in excess of book depreciation | (9365) | (5652) |
| &nbsp;&nbsp;&nbsp;FHLB and FRB stock | (4380) | (3910) |
| &nbsp;&nbsp;&nbsp;Mortgage-servicing rights | (5169) | (4262) |
| &nbsp;&nbsp;&nbsp;Leasing activities | (84261) | (42654) |
| &nbsp;&nbsp;&nbsp;Retirement obligation | (10464) | (10608) |
| &nbsp;&nbsp;&nbsp;Intangible assets | (25592) | (23138) |
| &nbsp;&nbsp;&nbsp;Deferred loan fees and costs | (4398) | (3406) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | (380) | (408) |
| &nbsp;&nbsp;&nbsp;Limited partnership investments | (3939) | (9394) |
| &nbsp;&nbsp;&nbsp;Fair value adjustments on business combinations | 0 | (5716) |
| &nbsp;&nbsp;&nbsp;ASU 2016-01 unrealized gain/loss-equity securities | (284) | (207) |
| &nbsp;&nbsp;&nbsp;Right of use assets | (11697) | (11839) |
| &nbsp;&nbsp;&nbsp;Other | (7698) | (4811) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total deferred tax liabilities** | (167627) | (126005) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total net deferred tax asset (liability)** | $(31065) | $16011 |

---

At December 31, 2025, the Company had tax credit carryforwards of $1.9 million compared to none at December 31, 2024. These carryforwards expire in 2044. The Company expects to fully utilize these tax credit carryforwards and, therefore, a valuation allowance was not required at December 31, 2025.

At both December 31, 2025 and 2024, the Company had a state net operating loss carryforward from MSFG of $2.3 million and $1.9 million, respectively. This carryforward begins to expire in 2026 and is subject to IRC Section 382 and limited annually. At December 31, 2025, the Company also had a state net operating loss carryforward of $0.5 million that expires in 2039. The Company expects to fully utilize these net operating losses and, therefore, no valuation allowance was required at December 31, 2025 and 2024.

The realization of the Company's deferred tax assets is dependent upon the Company's ability to generate taxable income in future periods and the reversal of deferred tax liabilities during the same period. The Company has evaluated the available evidence supporting the realization of its deferred tax assets and determined it is more likely than not that the assets will be realized and thus no valuation allowance was recorded at December 31, 2025 and 2024.

**First Financial Bancorp** 2025 Annual Report **97**

------

**Notes to Consolidated Financial Statements**

The Bank's retained earnings at December 31, 2025 and 2024 included base-year bad debt reserves of $16.1 million. Base-year reserves are subject to recapture in the event the Bank redeems its stock, makes distributions in excess of current and accumulated earnings and profits (as calculated for federal income tax purposes), loses its "bank" status or liquidates. The Bank does not expect to meet any of the criteria for recapture, therefore, a deferred income tax liability of $3.4 million has not been recorded.

On July 4, 2025, the legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14," which is commonly referred to as the One Big Beautiful Bill ("the Act") was signed into law. First Financial has evaluated the income tax implications of the Act and has applied the new law to current and deferred income tax calculations in 2025.

First Financial had no unrecognized tax benefits at December 31, 2025, 2024 or 2023. As defined by FASB ASC Topic 740-10, Income Taxes, an unrecognized tax benefit is a position that if recognized would favorably impact the effective income tax rate in future periods. First Financial recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. At December 31, 2025, 2024 and 2023, the Company had no interest or penalties recorded.

A progression of gross unrecognized tax benefits as of December 31, 2025, 2024 and 2023 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Balance at beginning of year | $0 | $0 | $2386 |
| Reductions for tax positions of prior years | 0 | 0 | (1909) |
| Settlements | 0 | 0 | (477) |
| &nbsp;&nbsp;&nbsp;Balance at end of year | $0 | $0 | $0 |

---

First Financial and its subsidiaries are subject to U.S. federal income tax as well as state and local income tax in several jurisdictions. Tax years prior to 2022 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2022 through 2025 remain open to examination by the federal taxing authority. With limited exception, First Financial is no longer subject to state and local income tax examinations for years prior to 2021.

**17. Employee Benefit Plans**

**Pension plan.** First Financial sponsors a non-contributory defined benefit pension plan covering substantially all employees and uses a December 31 measurement date for the plan. Plan assets are primarily invested in fixed income and equity mutual funds. The pension plan does not directly own any shares of First Financial common stock or any other First Financial security or product.

The investment objective of the Plan is to structure the assets to mirror the liabilities of the Plan, with the fixed income component matching the identified near and long-term plan distributions and the equity component generating growth of capital to meet other future Plan liabilities. The determination of the overall expected long-term return on plan assets was based on the composition of plan assets and long-term asset class return estimates developed by the Plan advisor, as well as a consensus of estimates from similarly managed portfolios of expected future returns.

First Financial recorded expense related to its pension plan of $8.8 million for 2025, $6.1 million for 2024 and $3.5 million for 2023. The components of net periodic benefit cost other than the service cost component are included in Other noninterest expense while service costs are included in Salaries and employee benefits in the Consolidated Statements of Income.

First Financial made no cash contributions to the pension plan in 2025, 2024 or 2023. Since the plan is fully funded, First Financial does not expect to make any contributions in 2026.

**98 First Financial Bancorp** 2025 Annual Report

------

The following tables set forth information concerning amounts recognized in First Financial's Consolidated Balance Sheets and Consolidated Statements of Income related to the Company's pension plan:

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| *(Dollars in thousands)* | 2025 | 2024 |
| **Change in benefit obligation** |  |  |
| Benefit obligation at beginning of year | $104297 | $93433 |
| Service cost | 10698 | 10198 |
| Interest cost | 5639 | 4649 |
| Actuarial (gain) loss | 6004 | 3460 |
| Benefits paid, excluding settlement | (9239) | (7443) |
| &nbsp;&nbsp;&nbsp;**Benefit obligation at end of year** | 117399 | 104297 |
| **Change in plan assets** |  |  |
| Fair value of plan assets at beginning of year | 150154 | 144540 |
| Actual return on plan assets | 20610 | 13057 |
| Benefits paid, excluding settlement | (9239) | (7443) |
| &nbsp;&nbsp;&nbsp;**Fair value of plan assets at end of year** | 161525 | 150154 |
| **Amounts recognized in the Consolidated Balance Sheets** |  |  |
| Assets | 44126 | 45857 |
| Liabilities | 0 | 0 |
| &nbsp;&nbsp;&nbsp;**Net amount recognized** | $44126 | $45857 |
| **Amounts recognized in accumulated other comprehensive income (loss)** |  |  |
| Net actuarial loss | $32611 | $39641 |
| Net prior service cost | 2 | 12 |
| Deferred tax assets | (7544) | (9173) |
| &nbsp;&nbsp;&nbsp;**Net amount recognized** | $25069 | $30480 |
| **Change in accumulated other comprehensive income (loss)** | $(5411) | $(637) |
| **Accumulated benefit obligation** | $117247 | $104047 |

---

.

**First Financial Bancorp** 2025 Annual Report **99**

------

**Notes to Consolidated Financial Statements**

The components of net periodic benefit cost are shown in the table that follows:

---

| | | | |
|:---|:---|:---|:---|
| | December 31, | December 31, | December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| Service cost | $10698 | $10198 | $9291 |
| Interest cost | 5639 | 4649 | 4279 |
| Expected return on assets | (10143) | (10555) | (10802) |
| Amortization of prior service cost (credit) | 10 | 10 | 10 |
| Recognized net actuarial loss | 2568 | 1776 | 737 |
| &nbsp;&nbsp;&nbsp;**Net periodic benefit (income) cost** | 8772 | 6078 | 3515 |
| **Other changes recognized in accumulated other comprehensive income (loss)** | **Other changes recognized in accumulated other comprehensive income (loss)** |  |  |
| Net actuarial (gain) loss | (4462) | 958 | (432) |
| Prior service cost | 0 | 0 | 0 |
| Amortization of prior service cost (credit) | (10) | (10) | (10) |
| Amortization of gain | (2568) | (1776) | (737) |
| &nbsp;&nbsp;&nbsp;**Total recognized in accumulated other comprehensive income (loss)** | (7040) | (828) | (1179) |
| &nbsp;&nbsp;&nbsp;**Total recognized in net periodic benefit cost and accumulated other comprehensive income (loss)** | $1732 | $5250 | $2336 |

---

The pension plan assumptions are shown in the table that follows:

---

| | | | |
|:---|:---|:---|:---|
| | December 31, | December 31, | December 31, |
| | 2025 | 2024 | 2023 |
| **Benefit obligations** |  |  |  |
| Discount rate | 5.48% | 5.69% | 5.18% |
| Rate of compensation increase | 3.50% | 3.50% | 3.50% |
| Weighted average interest crediting rate | 5.34% | 5.49% | 4.93% |
| **Net periodic benefit cost** |  |  |  |
| Discount rate | 5.69% | 5.18% | 5.50% |
| Expected return on plan assets | 7.25% | 7.25% | 7.25% |
| Rate of compensation increase | 3.50% | 3.50% | 3.50% |
| Weighted average interest crediting rate | 5.49% | 4.93% | 5.20% |

---

The fair value of the plan assets as of December 31, 2025 by asset category is shown in the table that follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements |
| *(Dollars in thousands)* | Total | Quoted Prices in <br>Active Markets <br>for <br>Identical Assets <br>(Level 1) | Significant<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) |
| **Asset Category** |  |  |  |  |
| Cash | $254 | $254 | $0 | $0 |
| U.S. Government agencies | 2713 | 0 | 2713 | 0 |
| Fixed income mutual funds | 69862 | 69862 | 0 | 0 |
| Equity mutual funds | 74589 | 74589 | 0 | 0 |
| &nbsp;&nbsp;**Total assets in fair value hierarchy** | 147418 | 144705 | 2713 | 0 |
| Collective trusts | 14107 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;**Investments at fair value** | $161525 | $144705 | $2713 | $0 |

---

**100 First Financial Bancorp** 2025 Annual Report

------

The fair value of the plan assets as of December 31, 2024 by asset category is shown in the table that follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements |
| *(Dollars in thousands)* | Total | Quoted Prices in <br>Active Markets <br>for <br>Identical Assets <br>(Level 1) | Significant<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) |
| **Asset Category** |  |  |  |  |
| Cash | $245 | $245 | $0 | $0 |
| U. S. Government agencies | 4110 | 0 | 4110 | 0 |
| Fixed income mutual funds | 65139 | 65139 | 0 | 0 |
| Equity mutual funds | 65212 | 65212 | 0 | 0 |
| &nbsp;&nbsp;**Total assets in fair value hierarchy** | 134706 | 130596 | 4110 | 0 |
| Collective trusts | 15448 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;**Investments at fair value** | $150154 | $130596 | $4110 | $0 |

---

The pension plan utilizes values provided by third-party pricing vendors to price investment securities in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance.

The level within the fair value hierarchy is based on the lowest level of input that is significant in the fair value measurement. The following methods, assumptions and valuation techniques were used by First Financial to measure the financial assets in the Company's pension plan.

**U.S. Government Agency Securities.** These securities are valued using matrix pricing models developed by a third party and consider standard input factors such as observable market data, benchmark yields, interest rate volatility, broker/dealer quotes, credit spreads and new issue data. Matrix pricing is widely used to value securities without solely relying on quoted market prices for specific securities (Level 2).

**Mutual funds.** Mutual funds held by the pension plan are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission and are valued at the daily closing price as reported by the fund. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded (Level 1).

**Collective trusts.** The collective trusts are alternative investments valued at the net asset value of units of the collective trusts. The net asset value is used as a practical expedient to estimate fair value and is priced quarterly on a month lag. This practical expedient would not be used if it is determined to be probable that the fund will sell the investment for an amount different from the reported net asset value. Participant transactions (purchases and sales) may occur daily. If the plan initiates a full redemption of the collective trusts, the issuer reserves the right to require 12 months notification in order to ensure that securities liquidations will be carried out in an orderly manner.

Investments measured at fair value using net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the hierarchy tables for such investments are intended to permit reconciliation to the fair value of plan assets at the end of the year.

See Note 23 – Fair Value Disclosures for further information related to the framework for measuring fair value and the fair value hierarchy.

**First Financial Bancorp** 2025 Annual Report **101**

------

**Notes to Consolidated Financial Statements**

The following benefit payments, which reflect expected future service, are expected to be paid:

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Expected benefit payments |
| 2026 | $7491 |
| 2027 | 8690 |
| 2028 | 7860 |
| 2029 | 10564 |
| 2030 | 9419 |
| Thereafter | 58292 |

---

**401(k) plan.** First Financial sponsors a defined contribution 401(k) plan which covers substantially all employees. Employees may contribute up to 50% of their earnings into the plan, not to exceed applicable limitations prescribed by the Internal Revenue Service. First Financial's contributions to the 401(k) plan are discretionary. The Company made no contributions to the 401(k) plan during the years ended December 31, 2025, 2024 or 2023.

**18. Revenue Recognition**

The majority of the Company's revenues come from sources that are outside of the scope of ASU 2014-09, *Revenue from Contracts with Customers*. Income sources that are outside of this standard include income earned on loans, leases, securities, derivatives and foreign exchange, excluding spot transactions. The Company's services that fall within the scope of ASU 2014-09 are presented within Noninterest income and are recognized as revenue when the Company satisfies its obligation to the customer. Services within the scope of this guidance include service charges on deposits, wealth management fees, bankcard income, foreign exchange spot income, gain/loss on the sale of OREO and investment brokerage fees.

**Service charges on deposit accounts.** The Company earns revenues from its deposit customers for transaction-based fees, account maintenance fees and overdraft fees. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed, which is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Similarly, overdraft fees are recognized at the point in time that the overdraft occurs as this corresponds with the Company's performance obligation. Service charges on deposit accounts are withdrawn from the customer's deposit account.

**Wealth management fees.** Wealth management fees are primarily asset-based, but can also include flat fees based upon a specific service rendered, such as tax preparation services. The Company's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fees. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing wealth management customers. The Company's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, as incurred.

Wealth management fees also includes brokerage revenue. Brokerage revenue represents fees from investment brokerage services provided to customers by a third party provider. The Company receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are paid the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs.

The Company provides advisory services on mergers and acquisitions. Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities.

**102 First Financial Bancorp** 2025 Annual Report

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**Bankcard income.** The Company earns interchange fees from cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized concurrent with the transaction processing services provided to the cardholder. Interchange income is presented on the Consolidated Statements of Income net of expenses. Gross interchange income for 2025 was $30.1 million, partially offset by $15.9 million of expenses within Noninterest income. Gross interchange income for 2024 was $30.0 million, partially offset by $15.6 million of expenses within Noninterest income, while gross interchange income for 2023 was $29.7 million, partially offset by $15.7 million of expenses within Noninterest income.

**Foreign exchange income.** Foreign exchange income includes both spot and forward income in First Financial's Consolidated Statements of Income. Forward income is excluded from the scope of ASU 2019-04, however, spot income is within the scope of the guidance. A foreign exchange spot trade is a trade made for immediate exchange and delivery of the currency, thus satisfying the performance obligation. Income from foreign exchange spot trades was $11.2 million, $10.4 million and $9.8 million for 2025, 2024 and 2023, respectively.

**Other.** Other noninterest income includes other recurring revenue streams such as transaction fees, safe deposit rental income, insurance commissions, merchant referral income and gain (loss) on sale of OREO. Transaction fees primarily include check printing sales commissions, collection fees and wire transfer fees which arise from in-branch transactions. Safe deposit rental income arises from fees charged to the customer on an annual basis and recognized upon receipt of payment. Insurance commissions are agent commissions earned by the Company and earned upon the effective date of the bound coverage. Merchant referral income is associated with a program whereby the Company receives a share of processing revenue that is generated from clients that were referred by First Financial to the service provider. Revenue is recognized at the time when the transaction occurs.

The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of the executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectibility of the transaction price is probable. Once these criteria are met, the OREO asset is removed and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer.

**First Financial Bancorp** 2025 Annual Report **103**

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**Notes to Consolidated Financial Statements**

**19. Accumulated Other Comprehensive Income (Loss)**

Shareholders' equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The related tax effects allocated to other comprehensive income and accumulated other comprehensive income (loss) are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total accumulated<br>other comprehensive income (loss) | Total accumulated<br>other comprehensive income (loss) | Total accumulated<br>other comprehensive income (loss) |
| *(Dollars in thousands)* | Prior to<br>reclass | Reclass<br>from | Pre-tax | Tax effect | Net of tax | Beginning balance | Net activity | Ending balance |
| Unrealized gain (loss) on debt securities | $96103 | $(22644) | $118747 | $(26156) | $92591 | $(256514) | $92591 | $(163923) |
| Unrealized gain (loss) on derivatives | 857 | (795) | 1652 | (382) | 1270 | (1176) | 1270 | 94 |
| Retirement obligation | 4462 | (2578) | 7040 | (1629) | 5411 | (30480) | 5411 | (25069) |
| Foreign currency translation | 585 | 0 | 585 | 0 | 585 | (1629) | 585 | (1044) |
| &nbsp;&nbsp;&nbsp;**Total** | $102007 | $(26017) | $128024 | $(28167) | $99857 | $(289799) | $99857 | $(189942) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total accumulated other<br>comprehensive income (loss) | Total accumulated other<br>comprehensive income (loss) | Total accumulated other<br>comprehensive income (loss) |
| *(Dollars in thousands)* | Prior to<br>reclass | Reclass<br>from | Pre-tax | Tax-effect | Net of tax | Beginning Balance | Net Activity | Ending Balance |
| Unrealized gain (loss) on debt securities | $7481 | $(25152) | $32633 | $(7189) | $25444 | $(281958) | $25444 | $(256514) |
| Unrealized gain (loss) on derivatives | (7210) | (795) | (6415) | 1484 | (4931) | 3755 | (4931) | (1176) |
| Retirement obligation | (958) | (1786) | 828 | (191) | 637 | (31117) | 637 | (30480) |
| Foreign currency translation | (1130) | 0 | (1130) | 0 | (1130) | (499) | (1130) | (1629) |
| &nbsp;&nbsp;&nbsp;**Total** | $(1817) | $(27733) | $25916 | $(5896) | $20020 | $(309819) | $20020 | $(289799) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2023 | December 31, 2023 | December 31, 2023 | December 31, 2023 | December 31, 2023 | December 31, 2023 | December 31, 2023 | |
| | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total other comprehensive income (loss) | Total accumulated other<br>comprehensive income (loss) | Total accumulated other<br>comprehensive income (loss) | |
| *(Dollars in thousands)* | Prior to<br>reclass | Reclass<br>from | Pre-tax | Tax-effect | Net of tax | Beginning Balance | Net Activity | Ending Balance |
| Unrealized gain (loss) on debt securities | $55129 | $(1258) | $56387 | $(12420) | $43967 | $(325925) | $43967 | $(281958) |
| Unrealized gain (loss) on derivatives | 4648 | (237) | 4885 | (1130) | 3755 | 0 | 3755 | 3755 |
| Retirement obligation | 432 | (747) | 1179 | (273) | 906 | (32023) | 906 | (31117) |
| Foreign currency translation | 216 | 0 | 216 | 0 | 216 | (715) | 216 | (499) |
| &nbsp;&nbsp;&nbsp;**Total** | $60425 | $(2242) | $62667 | $(13823) | $48844 | $(358663) | $48844 | $(309819) |

---

**104 First Financial Bancorp** 2025 Annual Report

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The following table details the activity reclassified from accumulated other comprehensive income into income during the period:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Amount Reclassified from Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | |
| | December 31, | December 31, | December 31, | |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 | Affected Line Item in the Consolidated Statements of Income |
| Gain and loss on cash flow hedges |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts | $(795) | $(795) | $(237) | Interest expense - deposits |
| Realized gains and losses on securities available-for-sale | (22644) | (25152) | (1258) | Net gain (loss) on sales/transfers of investment securities |
| Defined benefit pension plan |  |  |  |  |
| &nbsp;&nbsp;Amortization of prior service cost (credit) <sup>(1)</sup> | (10) | (10) | (10) | Other noninterest expense |
| &nbsp;&nbsp;Recognized net actuarial loss <sup>(1)</sup> | (2568) | (1776) | (737) | Other noninterest expense |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization and settlement charges of defined benefit pension items | (2578) | (1786) | (747) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total reclassifications for the period, before tax** | $(26017) | $(27733) | $(2242) |  |

---

<sup>(1)</sup> Included in the computation of net periodic pension cost (see Note 17 - Employee Benefit Plans for additional details)

**20. Capital**

**Risk-based capital.** First Financial and its subsidiary, First Financial Bank, are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate regulatory action.

The Board of Governors of the Federal Reserve System approved Basel III in order to strengthen the regulatory capital framework for all banking organizations. Basel III established and defined quantitative measures to ensure capital adequacy. These measures require First Financial to maintain minimum amounts and ratios of Common equity Tier 1 capital, Total and Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets (Leverage ratio).

The Basel III Final Capital Rule includes a minimum ratio of Common equity Tier 1 capital to risk-weighted assets of 7.0%, a minimum ratio of Tier 1 capital to risk-weighted assets of 8.5%, a minimum required Total risk-based capital ratio of 10.5% and a minimum leverage ratio of 4.0%. Failure to maintain the required Common equity Tier 1 capital will result in potential restrictions on a bank's ability to pay dividends, repurchase stock and pay discretionary compensation to its employees. The capital requirements also provide strict eligibility criteria for regulatory capital instruments and change the method for calculating risk-weighted assets in an effort to better identify riskier assets, such as highly volatile commercial real estate and nonaccrual loans.

As of December 31, 2025, management believes that First Financial met all capital adequacy requirements to which it was subject. The Company's most recent regulatory notifications categorized First Financial as "well-capitalized" under the regulatory framework for prompt corrective action. There have been no conditions or events since those notifications that management believes have changed the Company's categorization. Total regulatory capital exceeded the minimum requirement by $788.9 million on a consolidated basis at December 31, 2025.

**First Financial Bancorp** 2025 Annual Report **105**

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**Notes to Consolidated Financial Statements**

The following tables present the actual and required capital amounts and ratios as of December 31, 2025 and 2024 under the Basel III Final Capital Rules. Capital levels required to be considered "well capitalized" are based upon prompt corrective action regulations, as amended by the Basel III Capital Rules.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Actual | Actual | Minimum capital<br>required - Basel III | Minimum capital<br>required - Basel III | PCA requirement to be<br>considered well<br>capitalized | PCA requirement to be<br>considered well<br>capitalized |
| *(Dollars in thousands)* | Capital<br>amount | Ratio | Capital<br>amount | Ratio | Capital<br>amount | Ratio |
| **December 31, 2025** |  |  |  |  |  |  |
| Common equity tier 1 capital to risk-weighted assets | Common equity tier 1 capital to risk-weighted assets | Common equity tier 1 capital to risk-weighted assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | $1798266 | 11.32% | $1112325 | 7.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 1888695 | 11.90% | 1111184 | 7.00% | $1031814 | 6.50% |
| Tier 1 capital to risk-weighted assets | Tier 1 capital to risk-weighted assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | 1843672 | 11.60% | 1350681 | 8.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 1889024 | 11.90% | 1349295 | 8.50% | 1269925 | 8.00% |
| Total capital to risk-weighted assets | Total capital to risk-weighted assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | 2457377 | 15.46% | 1668488 | 10.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 2092052 | 13.18% | 1666777 | 10.50% | 1587406 | 10.00% |
| Leverage |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | 1843672 | 9.53% | 774045 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 1889024 | 9.77% | 773531 | 4.00% | 966914 | 5.00% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Actual | Actual | Minimum capital<br>required - Basel III | Minimum capital<br>required - Basel III | PCA requirement to be<br>considered well<br>capitalized | PCA requirement to be<br>considered well<br>capitalized |
| *(Dollars in thousands)* | Capital<br>amount | Ratio | Capital<br>amount | Ratio | Capital<br>amount | Ratio |
| **December 31, 2024** |  |  |  |  |  |  |
| Common equity tier 1 capital to risk-weighted assets | Common equity tier 1 capital to risk-weighted assets | Common equity tier 1 capital to risk-weighted assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | $1709422 | 12.16% | $984145 | 7.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 1751512 | 12.48% | 982565 | 7.00% | $912382 | 6.50% |
| Tier 1 capital to risk-weighted assets | Tier 1 capital to risk-weighted assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | 1754584 | 12.48% | 1195033 | 8.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 1752054 | 12.48% | 1193114 | 8.50% | 1122931 | 8.00% |
| Total capital to risk-weighted assets | Total capital to risk-weighted assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | 2057877 | 14.64% | 1476218 | 10.50% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 1912456 | 13.62% | 1473847 | 10.50% | 1403664 | 10.00% |
| Leverage |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated | 1754584 | 9.98% | 702969 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;First Financial Bank | 1752054 | 9.97% | 702666 | 4.00% | 878333 | 5.00% |

---

**Share repurchases.** Effective January 2024, First Financial's Board of Directors approved a stock repurchase plan (the 2024 Repurchase Plan), replacing the 2022 Repurchase Plan which became effective in January 2022. The 2024 Repurchase Plan was in effect for two years and authorized the purchase of up to 5,000,000 shares of the Company's common stock. The 2024 Repurchase plan expired in December 2025. First Financial did not repurchase any shares during 2025 or 2024 under the 2024 Repurchase Plan.

**106 First Financial Bancorp** 2025 Annual Report

------

**21. Stock Options and Awards**

First Financial follows the provisions of FASB ASC Topic 718, Compensation-Stock Compensation, which requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for all awards expected to vest. First Financial recorded share-based compensation expense within salaries and employee benefits on the Consolidated Statements of Income of $15.6 million, $15.7 million and $14.9 million for the years ended December 31, 2025, 2024 and 2023, respectively, related to restricted stock awards. Total unrecognized compensation cost related to non-vested share-based compensation was $11.2 million at December 31, 2025 and is expected to be recognized over a weighted average period of 1.93 years.

As of December 31, 2025, First Financial had one active stock-based compensation plan, the 2020 Stock Plan (the Plan), with 1,281,160 shares available for issuance under the Plan. No stock options have been granted under the Plan, and any previously-issued or assumed stock options have been exercised.

First Financial utilizes the Black-Scholes valuation model to determine the fair value of stock options granted. In addition to the stock option strike price, the Black-Scholes valuation model incorporates the following assumptions: the expected dividend yield based on historical dividend payouts; the expected stock price volatility based on the historical volatility of Company stock for a period approximating the expected life of the options; the risk-free rate based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option; and the expected option life represented by the period of time the options are expected to be outstanding, and is based on historical trends. No new options were granted in 2025, 2024 or 2023.

The intrinsic value of stock options is defined as the difference between the current market value and the exercise price. First Financial uses treasury shares purchased under the Company's share repurchase program to satisfy share-based exercises.

---

| | | | |
|:---|:---|:---|:---|
| | 2025 | 2024 | 2023 |
| Total intrinsic value of options exercised | $0 | $0 | $71 |
| Cash received from exercises | $0 | $0 | $48 |
| Tax benefit from exercises | $0 | $0 | $3446 |

---

Restricted stock awards are recorded at fair value as of the grant date as a component of shareholders' equity and amortized on a straight-line basis to salaries and benefits expense over the specified vesting periods, which is currently three years for employees and one year for non-employee directors. The vesting of these awards for employees and non-employee directors may require a service period to be met, and certain awards may also require performance measures to be met. The fair value of restricted stock vested during 2025, 2024 and 2023 was $15.2 million, $14.3 million and $13.7 million, respectively.

Activity in restricted stock for the previous three years ended December 31 is summarized as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| | Number of shares | Weighted<br> average<br>grant date<br>fair value | Number of shares | Weighted<br> average<br>grant date<br>fair value | Number of shares | Weighted<br> average<br>grant date<br>fair value |
| Nonvested at beginning of year | 1002461 | $22.24 | 1072031 | $21.75 | 1229346 | $21.28 |
| Granted | 580708 | 25.58 | 617003 | 22.60 | 623742 | 20.05 |
| Vested | (673055) | 22.65 | (651690) | 21.94 | (728126) | 18.87 |
| Forfeited | (51819) | 22.06 | (34883) | 23.44 | (52931) | 25.68 |
| &nbsp;&nbsp;&nbsp;**Nonvested at end of year** | 858295 | $24.07 | 1002461 | $22.24 | 1072031 | $21.75 |

---

**First Financial Bancorp** 2025 Annual Report **107**

------

**Notes to Consolidated Financial Statements**

**22. Earnings per Common Share**

The following table sets forth the computation of basic and diluted earnings per share:

---

| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands, except share and per share data)* | 2025 | 2024 | 2023 |
| **Numerator** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $255605 | $228830 | $255863 |
| **Denominator** |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic earnings per common share - weighted average shares | 95284550 | 94404617 | 93938772 |
| &nbsp;&nbsp;&nbsp;Effect of dilutive securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee stock awards | 873414 | 1001102 | 1157295 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per common share - adjusted weighted average shares | 96157964 | 95405719 | 95096067 |
| Earnings per share available to common shareholders |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $2.68 | $2.42 | $2.72 |
| &nbsp;&nbsp;&nbsp;Diluted | $2.66 | $2.40 | $2.69 |

---

Stock options with exercise prices greater than the average market price of the common shares are excluded from the computation of net income per diluted share, as they would be antidilutive. Using the end of period price of the Company's common shares, there were no antidilutive options at December 31, 2025, 2024, or 2023.

As of December 31, 2025, 2024, and 2023, First Financial was authorized to issue 10,000,000 preferred shares; however, no preferred shares were issued or outstanding.

**23. Fair Value Disclosures**

The fair value framework as disclosed in the Fair Value Topic includes a hierarchy which focuses on prioritizing the inputs used in valuation techniques. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), a lower priority to observable inputs other than quoted prices in active markets for identical assets and liabilities (Level 2) and the lowest priority to unobservable inputs (Level 3). When determining the fair value measurements for assets and liabilities, First Financial looks to active markets to price identical assets or liabilities whenever possible and classifies such items in Level 1. When identical assets and liabilities are not traded in active markets, First Financial looks to observable market data for similar assets and liabilities and classifies such items as Level 2. Certain assets and liabilities are not actively traded in observable markets and First Financial must use alternative techniques, based on unobservable inputs, to determine the fair value and classifies such items as Level 3. The level within the fair value hierarchy is based on the lowest level of input that is significant in the fair value measurement.

The estimated fair values of First Financial's financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Carrying | Estimated fair value | Estimated fair value | Estimated fair value | Estimated fair value |
| *(Dollars in thousands)* | value | Total | Level 1 | Level 2 | Level 3 |
| **December 31, 2025** |  |  |  |  |  |
| **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and interest-bearing deposits with other banks | $775891 | $775891 | $775891 | $0 | $0 |
| &nbsp;&nbsp;&nbsp;Investment securities held-to-maturity | 58545 | 54334 | 0 | 54334 | 0 |
| &nbsp;&nbsp;Other investments <sup>(1)</sup> | 12898 | 12898 | 1850 | 40 | 11008 |
| &nbsp;&nbsp;&nbsp;Loans and leases, net | 13237583 | 13061341 | 0 | 0 | 13061341 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 71940 | 71940 | 0 | 17833 | 54107 |
| **Financial liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 16421842 | 16415852 | 0 | 16415852 | 0 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 675332 | 675332 | 675332 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Long-term debt | 514052 | 473291 | 0 | 473291 | 0 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 38304 | 38304 | 2918 | 35386 | 0 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Carrying | Estimated Fair Value | Estimated Fair Value | Estimated Fair Value | Estimated Fair Value |
| *(Dollars in thousands)* | Value | Total | Level 1 | Level 2 | Level 3 |
| **December 31, 2024** |  |  |  |  |  |
| **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and interest-bearing deposits with other banks | $904486 | $904486 | $904486 | $0 | $0 |
| &nbsp;&nbsp;&nbsp;Investment securities held-to-maturity | 76960 | 68989 | 0 | 68989 | 0 |
| &nbsp;&nbsp;Other investments <sup>(1)</sup> | 11570 | 11570 | 1530 | 40 | 10000 |
| &nbsp;&nbsp;&nbsp;Loans and leases, net | 11604987 | 11417941 | 0 | 0 | 11417941 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 67420 | 67420 | 0 | 14263 | 53157 |
| **Financial liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 14329138 | 14322815 | 0 | 14322815 | 0 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 755452 | 755452 | 755452 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Long-term debt | 347509 | 346613 | 0 | 346613 | 0 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 43411 | 43411 | 4663 | 38748 | 0 |

---

<sup>(1)</sup> FHLB stock and FRB stock of $116.7 million and $103.0 million as of December 31, 2025 and 2024, respectively, are excluded from the numbers above.

The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis.

**Investment securities.** Investment securities classified as available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar investment securities. First Financial compiles prices from various sources who may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for the specific investment securities but rather relying on the investment securities' relationship to other benchmark quoted investment securities. Any investment securities not valued based upon the methods previously described are considered Level 3.

First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to

ensure that the fair value determination is consistent with the applicable accounting guidance. First Financial's pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services. Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities. First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings. The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager.

**Loans held for sale.** The fair value of the Company's residential mortgage loans held for sale is determined on a recurring basis based on quoted prices for similar loans in active markets, and therefore, is classified as Level 2 in the fair value hierarchy.

**Derivatives.** The fair values of derivative instruments, which includes interest rate derivatives, foreign exchange derivatives, floors, collars and commodities contracts, are based primarily on a net present value calculation of the cash flows related to the contracts at the reporting date, using primarily observable market inputs such as interest rate yield curves which represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes an internally-developed model to value the credit risk component of derivative assets and liabilities, which is recorded as an adjustment to the fair value of the derivative asset or liability on the reporting date. Derivative instruments are classified as Level 2 in the fair value hierarchy.

**Collateral dependent loans.** Collateral dependent loans are defined as loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrowers are experiencing financial difficulty. Collateral dependent loans are carried at fair value when the value of the operation or collateral less any costs to sell is not sufficient to cover the remaining balance. In these instances, the loans will either be partially charged-off or receive specific allocations of the allowance for credit losses. For collateral dependent loans, fair value is generally based on real estate appraisals, a calculation of enterprise value or a valuation of business assets including equipment, inventory and accounts receivable. These loans had a principal amount of $38.1 million and $3.9 million at December 31, 2025 and December 31, 2024, respectively, with a valuation allowance of $16.1 million and $2.1 million at December 31, 2025 and December 31, 2024, respectively.

The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed third-party appraiser (Level 3). These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Collateral is then adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and the client's business, resulting in a Level 3 fair value classification. Collateral dependent loans are evaluated on a quarterly basis for additional write-downs and are adjusted accordingly.

Enterprise value is defined as imputed value for the entire underlying business. To determine an appropriate range of enterprise value, FFB relies on a standardized set of valuation methodologies that take into account future projected cash flows, market based multiples as well as asset values. Valuations involve both quantitative and qualitative considerations and professional judgments concerning differences in financial and operating characteristics in addition to other factors that may impact values over time (Level 3).

The value of business equipment is based on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3).

The fair value of collateral dependent loans is measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income.

**Mortgage servicing rights.** Mortgage servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of the servicing asset exceeds fair value, impairment is recorded so that the servicing asset is carried at fair value. Fair value is determined based on a valuation model that calculates the present value of estimated future net servicing income. At December 31, 2025 and 2024, the fair value of MSR was $33.7 million and $29.8 million, respectively. The valuation model utilizes a discount rate of 11.66% and 11.52% for 2025 and 2024, respectively, weighted average prepayment speeds of 6.49% and 5.96% for 2025 and 2024, respectively, and other economic

factors that market participants would use in estimating future net servicing income and that can be validated against available market data.

The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Fair Value Measurements Using | Fair Value Measurements Using | Fair Value Measurements Using | Assets/Liabilities |
| *(Dollars in thousands)* | Level 1 | Level 2 | Level 3 | at Fair Value |
| **December 31, 2025** |  |  |  |  |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities available-for-sale | $95 | $3926021 | $45816 | $3971932 |
| &nbsp;&nbsp;&nbsp;Loans held for sale | 0 | 16953 | 0 | 16953 |
| &nbsp;&nbsp;&nbsp;Interest rate derivative contracts | 0 | 69481 | 0 | 69481 |
| &nbsp;&nbsp;&nbsp;Foreign exchange derivative contracts | 0 | 322172 | 0 | 322172 |
| &nbsp;&nbsp;Interest rate collars and floors | 0 | 708 | 0 | 708 |
| &nbsp;&nbsp;Commodities contracts | 0 | 1578 | 0 | 1578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $95 | $4336913 | $45816 | $4382824 |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivative contracts | $0 | $69570 | $0 | $69570 |
| &nbsp;&nbsp;&nbsp;Foreign exchange derivative contracts | 0 | 322172 | 0 | 322172 |
| &nbsp;&nbsp;Interest rate collars and floors | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;Commodities contracts | 0 | 2078 | 0 | 2078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | $393820 | $0 | $393820 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Fair Value Measurements Using | Fair Value Measurements Using | Fair Value Measurements Using | Assets/Liabilities |
| *(Dollars in thousands)* | Level 1 | Level 2 | Level 3 | at Fair Value |
| **December 31, 2024** |  |  |  |  |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities available-for-sale | $91 | $3139503 | $44182 | $3183776 |
| &nbsp;&nbsp;&nbsp;Loans held for sale | 0 | 13181 | 0 | 13181 |
| &nbsp;&nbsp;&nbsp;Interest rate derivative contracts | 0 | 102152 | 0 | 102152 |
| &nbsp;&nbsp;Foreign exchange derivative contracts | 0 | 294418 | 0 | 294418 |
| &nbsp;&nbsp;Interest rate collars and floors | 0 | 387 | 0 | 387 |
| &nbsp;&nbsp;Commodities contracts | 0 | 158 | 0 | 158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $91 | $3549799 | $44182 | $3594072 |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivative contracts | $0 | $102265 | $0 | $102265 |
| &nbsp;&nbsp;&nbsp;Foreign exchange derivative contracts | 0 | 294418 | 0 | 294418 |
| &nbsp;&nbsp;Interest rate collars and floors | 0 | 619 | 0 | 619 |
| &nbsp;&nbsp;Commodities contracts | 0 | 158 | 0 | 158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $0 | $397460 | $0 | $397460 |

---

The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2025, 2024 and 2023.

---

| | | | |
|:---|:---|:---|:---|
| *(dollars in thousands)* | December 31, 2025 | December 31, 2024 | December 31, 2023 |
| Beginning balance | $44182 | $32945 | $35857 |
| &nbsp;&nbsp;&nbsp;Accretion (amortization) | (4808) | (93) | (104) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in fair value | 3752 | (865) | (99) |
| &nbsp;&nbsp;&nbsp;Purchases (settlements) | (8125) | (4977) | (2709) |
| &nbsp;&nbsp;Transfers into level 3 | 10815 | 17172 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | $45816 | $44182 | $32945 |

---

Two securities with a fair value of $10.8 million as of December 31, 2025, as well as four commercial mortgage-backed securities with a fair value of $17.2 million as of December 31, 2024, were transferred from level 2 to level 3 due to credit deterioration and a lack of observable market data for these investments due to a decrease in market activity for these securities. The Company's valuations were supported by an analysis prepared by an independent third party and approved by management. The approach to determining fair value involved several steps which included: 1) detailed collateral analysis; 2) collateral performance projections and 3) discounted cash flow modeling.

Certain financial assets and liabilities are measured at fair value on a nonrecurring basis. Adjustments to the fair value of these assets usually result from the application of fair value accounting or write-downs of individual assets. The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis:

---

| | | | |
|:---|:---|:---|:---|
| | Fair Value Measurements Using | Fair Value Measurements Using | Fair Value Measurements Using |
| *(Dollars in thousands)* | Level 1 | Level 2 | Level 3 |
| **December 31, 2025** |  |  |  |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Collateral dependent loans |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial & industrial | $0 | $0 | $8517 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease financing | 0 | 0 | 2499 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 0 | 0 | 11020 |

---

---

| | | | |
|:---|:---|:---|:---|
| | Fair Value Measurements Using | Fair Value Measurements Using | Fair Value Measurements Using |
| *(Dollars in thousands)* | Level 1 | Level 2 | Level 3 |
| **December 31, 2024** |  |  |  |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Collateral dependent loans |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial & industrial | $0 | $0 | $793 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leasing | 0 | 0 | 1012 |

---

**Fair value option.** First Financial may elect to report most financial instruments and certain other items at fair value on an instrument-by instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made.

The Company elected the fair value option for residential mortgage loans held for sale. This election allows for a more effective offset of the changes in fair values of the loans held for sale and the derivative financial instruments used to financially hedge them without having to apply complex hedge accounting requirements. The fair value of the Company's residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets.

The aggregate fair value of the Company's residential mortgage loans held for sale as of December 31, 2025 and 2024 was $17.0 million and $13.2 million, respectively. The aggregate unpaid principal balance of the Company's residential mortgage

loans held for sale as of December 31, 2025 and 2024 was $15.8 million and $12.4 million, respectively. The resulting difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was $1.2 million and $0.8 million as of December 31, 2025 and 2024, respectively.

Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of Net gains from sales of loans in the Company's Consolidated Statements of Income. For the years ended December 31, 2025, 2024, and 2023, the change in fair value of the Company's residential mortgage loans held for sale were gains of $0.4 million, $0.1 million, and $0.3 million, respectively.

**24. Business Combinations**

**Westfield Bancorp, Inc.**

On November 1, 2025, First Financial Bancorp acquired Westfield Bancorp, Inc., an Ohio corporation. Upon completion of the transaction, Westfield Bank, FSB, a federal savings bank, and a wholly owned subsidiary of Westfield Bancorp, merged into First Financial Bank. Pursuant to the Purchase Agreement, First Financial acquired all of the issued and outstanding equity securities of Westfield Bancorp in exchange for a cash payment of $260.0 million and 2,753,094 shares of First Financial common stock, equal to $64.4 million based on First Financial's stock price on the date the transaction, for a total purchase price of $324.4 million. This acquisition supplements First Financial's existing commercial banking and wealth management presence in Northeast Ohio by adding all of Westfield's retail banking locations and its commercial lending, insurance agency lending and private banking services. Operating results from the Westfield acquisition have been included in the Consolidated Statements of Income since the acquisition date.

The Westfield transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. The fair value measurements of assets acquired and liabilities assumed were $2.1 billion and $1.9 billion, respectively. Acquisition accounting adjustments are considered preliminary at December 31, 2025. These present value measurements are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available, and the measurement period ends in November 2026.

Goodwill arising from the Westfield acquisition was $91.9 million and reflects the additional revenue growth expected with the Company's expansion into the insurance premium financing business. The goodwill arising from the Westfield acquisition is nondeductible for income tax purposes. For further detail, see Note 10 – Goodwill and Other Intangible Assets.

The fair value of PCD assets was $27.4 million on the date of the acquisition. The gross contractual amounts receivable relating to the PCD assets was $32.0 million. The Company estimates, on the date of acquisition, that $3.0 million of the contractual cash flows specific to the PCD assets will not be collected.

First Financial incurred $5.8 million of expenses related to the Westfield acquisition for the year ended December 31, 2025.

**First Financial Bancorp** 2025 Annual Report **108**

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The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value for the Westfield acquisition.

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Westfield |
| **Purchase consideration** |  |
| Cash consideration | $260000 |
| Stock consideration | 64450 |
| &nbsp;&nbsp;&nbsp;Total purchase consideration | 324450 |
| **Assets acquired** |  |
| Cash | 72814 |
| Investment securities available-for-sale | 301007 |
| Other investments | 25491 |
| Loan, net of ACL | 1571573 |
| Premises and equipment | 6026 |
| Core deposit intangible | 47065 |
| Other intangible assets | 1105 |
| Other assets | 103646 |
| &nbsp;&nbsp;&nbsp;Total assets acquired | 2128727 |
| **Liabilities assumed** |  |
| Deposits | 1790524 |
| FHLB advances | 80000 |
| Long-term borrowings | 1920 |
| Other liabilities | 23701 |
| &nbsp;&nbsp;&nbsp;Total liabilities assumed | 1896145 |
| Net identifiable assets | 232582 |
| &nbsp;&nbsp;&nbsp;**Goodwill** | $91868 |

---

**Agile Premium Finance**

On February 29, 2024, First Financial acquired Agile Premium Finance for $96.9 million in an all cash transaction. Agile originates commercial loans for the payment of annual property and casualty insurance for businesses. The loans are secured by the unearned premium of the policies and have an average term of approximately ten months. Upon completion of the transaction, Agile became a division of the Bank and continues to operate as Agile Premium Finance, taking advantage of its existing brand recognition within the insurance premium financing industry. Operating results from the Agile acquisition have been included in the Consolidated Statements of Income since the acquisition date.

The Agile transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. The fair value measurements of assets acquired and liabilities assumed were $97.8 million and $2.7 million, respectively. Acquisition accounting adjustments are considered final at December 31, 2025. Goodwill arising from the Agile acquisition was $1.8 million and reflects the additional revenue growth expected with the Company's expansion into the insurance premium financing business. First Financial incurred $0.1 million and $0.2 million of expenses related to the Agile acquisition for the years ended December 31, 2025 and December 31, 2024, respectively.

The goodwill arising from the Agile acquisition is deductible for income tax purposes. For further detail, see Note 10 – Goodwill and Other Intangible Assets.

**109 First Financial Bancorp** 2025 Annual Report

------

The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value for the Agile acquisition.

---

| | |
|:---|:---|
| *(Dollars in thousands)* | Agile |
| **Purchase consideration** |  |
| Cash consideration | $96887 |
| **Assets acquired** |  |
| Commercial loans | 93353 |
| Premises and equipment | 651 |
| Other intangible assets | 3797 |
| &nbsp;&nbsp;&nbsp;Total assets acquired | 97801 |
| **Liabilities assumed** |  |
| Other liabilities | 2702 |
| &nbsp;&nbsp;&nbsp;Total liabilities assumed | 2702 |
| Net identifiable assets | 95099 |
| &nbsp;&nbsp;&nbsp;**Goodwill** | $1788 |

---

**BankFinancial Corporation (unaudited)**

In August 2025, the Company entered into an Agreement and Plan of Merger with BankFinancial Corporation, a Maryland corporation. The transaction was completed subsequent to the end of the year, effective January 1, 2026, at which time BankFinancial, National Association, a national banking association, and a wholly owned subsidiary of BankFinancial Corporation, merged into First Financial Bank. Pursuant to the merger agreement, each share of BankFinancial Corporation common stock was converted into 0.48 shares of First Financial common stock, or 5,980,878 total shares, valuing the transaction at $149.6 million based on the closing price of First Financial stock at December 31, 2025.

As of December 31, 2025, BankFinancial Corporation operated 17 full-service banking offices and had, on an unaudited basis, approximately $1.4 billion of total assets, $700.2 million of total loans and $1.2 billion of total deposits.

This acquisition expands First Financial's presence in the Chicago market with a strong core deposit franchise while supplementing its existing commercial banking and wealth management lines of business.

Given the transaction closed subsequent to December 31, 2025, the BankFinancial acquisition had no impact on First Financial's Consolidated Financial Statements as presented in this Annual Report on Form 10-K.

**25. Business Segments**

Operating segments are components of an enterprise about which separate financial information is available, and is evaluated regularly by the chief operating decision maker in assessing performance and in allocating resources.

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. While the Company monitors the results of its lines of business, the Company's business activities are similar in their nature, operations and economic characteristics, largely serving clients with products and services that are offered through similar processes and platforms. Accounting policies for the segment are the same as those described in Note 1 – Summary of Significant Accounting Policies.

A segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services and customers are similar. First Financial has determined that the chief operating decision maker is comprised of a group of associates, including but not limited to the Chief Executive Officer and Chief Financial Officer, as well as from time to time the Board of Directors. The Board of Directors are not in day-to-day management of the Company but there are times when Board

**First Financial Bancorp** 2025 Annual Report **110**

------

approval is required, such as for shareholder dividends and material transactions, such as acquisitions.

Loans, investments, and deposits provide the revenues in the banking operation, while interest expense, provision for credit losses and salaries and benefits provide the significant expenses. The CODM is regularly provided with consolidated income and expenses, as presented on the Consolidated Statements of Income, in addition to consolidated assets presented on the Consolidated Balance Sheets. Additionally, consolidated internal financial information is used by the CODM to monitor credit quality and credit loss expense.

The Company uses this information to assess performance, decide how to allocate resources, and evaluate capital deployment opportunities. The CODM uses consolidated net income and return on assets to benchmark the Company against its competitors. This benchmarking analysis, coupled with the monitoring of budget to actual results, are used in assessing the Company's performance and in establishing compensation.

Accordingly, and consistent with prior years, all of the Company's operations are considered by management to be aggregated into one reportable operating segment.

**26. First Financial Bancorp. (Parent Company Only) Financial Information**

**Balance Sheets**

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| *(Dollars in thousands)* | 2025 | 2024 |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $330946 | $214464 |
| &nbsp;&nbsp;&nbsp;Investment securities | 1676 | 1333 |
| &nbsp;&nbsp;&nbsp;Subordinated notes from subsidiaries | 7500 | 7500 |
| &nbsp;&nbsp;&nbsp;Investment in subsidiaries |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial bank | 2737847 | 2414247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-banks | 11725 | 10426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment in subsidiaries | 2749572 | 2424673 |
| &nbsp;&nbsp;&nbsp;Premises and equipment | 233 | 250 |
| &nbsp;&nbsp;&nbsp;Other assets | 181278 | 111054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $3271205 | $2759274 |
| **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Subordinated notes | $489873 | $313392 |
| &nbsp;&nbsp;&nbsp;Dividends payable | 1574 | 1659 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 10542 | 6182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 501989 | 321233 |
| **Shareholders' equity** | 2769216 | 2438041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $3271205 | $2759274 |

---

**111 First Financial Bancorp** 2025 Annual Report

------

**Statements of Income and Comprehensive Income (Loss)**

---

| | | | |
|:---|:---|:---|:---|
| | Years Ended December 31, | Years Ended December 31, | Years Ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| **Income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $18 | $24 | $42 |
| &nbsp;&nbsp;&nbsp;Noninterest income | 423 | 262 | 1230 |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on equity securities | 343 | 408 | (546) |
| &nbsp;&nbsp;&nbsp;Dividends from subsidiaries | 280000 | 200000 | 164974 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total income** | 280784 | 200694 | 165700 |
| **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 22487 | 18400 | 18305 |
| &nbsp;&nbsp;&nbsp;Salaries and employee benefits | 15914 | 16410 | 16351 |
| &nbsp;&nbsp;&nbsp;Professional services | 4265 | 1346 | 1510 |
| &nbsp;&nbsp;&nbsp;Other | 5487 | 5150 | 5281 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | 48153 | 41306 | 41447 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income before income taxes and equity in undistributed net earnings of subsidiaries** | 232631 | 159388 | 124253 |
| Income tax expense (benefit) | (11764) | (9714) | (9879) |
| Equity in undistributed earnings (loss) of subsidiaries | 11210 | 59728 | 121731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $255605 | $228830 | $255863 |
| **Comprehensive income (loss)** | $355462 | $248850 | $304707 |

---

**First Financial Bancorp** 2025 Annual Report **112**

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**Notes to Consolidated Financial Statements**

**Statements of Cash Flows**

---

| | | | |
|:---|:---|:---|:---|
| | Years Ended December 31, | Years Ended December 31, | Years Ended December 31, |
| *(Dollars in thousands)* | 2025 | 2024 | 2023 |
| **Operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $255605 | $228830 | $255863 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities | &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in undistributed (earnings) loss of subsidiaries | (11210) | (59728) | (121731) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 837 | 853 | 975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 15590 | 15693 | 14898 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (gain) loss on investment securities | (343) | (408) | 546 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 399 | 1 | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in dividends payable | (85) | 219 | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in other liabilities | 6673 | (109) | (213) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in other assets | (11377) | (10054) | (10129) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 256089 | 175297 | 140093 |
| **Investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital contributions to subsidiaries | (250) | (1000) | (167) |
| &nbsp;&nbsp;&nbsp;Net cash acquired (paid) in business combinations | (210693) | 0 | (3400) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of investment securities | 0 | 209 | 0 |
| &nbsp;&nbsp;&nbsp;Purchases of premises and equipment | 0 | (2) | (13) |
| &nbsp;&nbsp;&nbsp;Other | 0 | 16 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (210943) | (777) | (3580) |
| **Financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term borrowings | 300000 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Payments for debt issuance costs | (4339) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Redemption of subordinated debt | (120000) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;Cash dividends paid on common stock | (94646) | (89544) | (87159) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options, net of shares purchased | 0 | 0 | 48 |
| &nbsp;&nbsp;&nbsp;Other | (9679) | (5257) | (5670) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 71336 | (94801) | (92781) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net increase (decrease) in cash** | 116482 | 79719 | 43732 |
| Cash at beginning of year | 214464 | 134745 | 91013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash at end of year** | $330946 | $214464 | $134745 |

---

**113 First Financial Bancorp** 2025 Annual Report

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**Total Return to Shareholders**

The following graph compares the five-year cumulative total return to shareholders of First Financial Bancorp common stock with that of companies that comprise the Nasdaq Composite Index and the KBW Regional Bank Index. The KBW Regional Bank Index is comprised of 50 banks headquartered throughout the country and is used frequently by investors when comparing First Financial Bancorp's stock performance to that of other similarly sized institutions. First Financial Bancorp is included in the KBW Regional Bank Index.

The following table assumes $100 invested on December 31, 2020 in First Financial Bancorp, the Nasdaq Composite Index and the KBW Regional Bank Index, and assumes that dividends are reinvested.

**COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN**

**AMONG FIRST FINANCIAL BANCORP, NASDAQ COMPOSITE INDEX**

**AND KBW REGIONAL BANK INDEX**

![886](ffbc-20251231_g3.jpg)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| First Financial Bancorp | 100.00 | 144.59 | 122.26 | 115.25 | 115.82 | 111.72 |
| Nasdaq Composite Index | 100.00 | 122.21 | 90.82 | 106.07 | 111.51 | 113.38 |
| KBW Regional Bank Index | 100.00 | 136.65 | 112.78 | 108.21 | 109.43 | 108.84 |

---

**First Financial Bancorp** 2025 Annual Report **114**

## Ex-21

**EXHIBIT 21**

**FIRST FINANCIAL BANCORP. SUBSIDIARIES (as of 12/31/25)**

---

| | |
|:---|:---|
| **Name** | **State of Other Jurisdiction of<br>Incorporation or Organization** |
| First Financial Bank | Ohio |
| &nbsp;&nbsp;&nbsp;First Financial Collateral, Inc. | Indiana |
| &nbsp;&nbsp;&nbsp;First Franchise Capital Corporation | Indiana |
| &nbsp;&nbsp;&nbsp;Irwin Home Equity Corporation | Indiana |
| &nbsp;&nbsp;&nbsp;&nbsp;IHE Funding Corp. II | Delaware |
| &nbsp;&nbsp;&nbsp;MSB Investments of Nevada, Inc. | Nevada |
| &nbsp;&nbsp;&nbsp;&nbsp;MSB Holdings of Nevada, Inc. | Nevada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSB of Nevada, LLC | Nevada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Financial Preferred Capital, Inc. | Ohio |
| &nbsp;&nbsp;&nbsp;Oak Street Holdings Corporation | Delaware |
| &nbsp;&nbsp;&nbsp;&nbsp;Oak Street Funding LLC | Delaware |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oak Street Servicing, LLC | Delaware |
| &nbsp;&nbsp;Summit Funding Group, Inc. | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;New York Systems Exchange, Inc. | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;Summit RFG Corp. | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;SFG Titling Co. | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;PRC SFG, LLC | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;Summit Financial Services, Inc.-Consolidated | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summit-Northlake Canadian Leasing Corporation | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;Summit MFR Leasing II, LLC | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;Summit MFR Leasing, LLC | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;PRC SFG II, LLC | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;Summit Continental Leasing, LLC | Ohio |
| &nbsp;&nbsp;Westfield Mortgage Company, LLC | Ohio |
| MainSource Statutory Trust I | Connecticut |
| MainSource Statutory Trust II | Connecticut |
| MainSource Statutory Trust III | Delaware |
| MainSource Statutory Trust IV | Delaware |
| FCB Bancorp Statutory Trust I | Delaware |
| OSF Insurance Receivables, LLC | Indiana |
| Westfield Asset Management, LLC | Ohio |
| Westfield Credit Corp. | Ohio |
| Yellow Cardinal Corporate Finance, LLC | Ohio |
| Yellow Cardinal M & A Services, Inc. | Ohio |

---

## Ex-23

**EXHIBIT 23**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the following Registration Statements of First Financial Bancorp.:

Form S-8 No. 338-86781

Form S-3 No. 333-25745

Form S-3 No. 333-156841

Form S-3 No. 333-153751

Form S-8 No. 333-168675

Form S-8 No. 333-188593

Form S-3 ASR No. 333-197771

Form S-8 No. 333-218188

Form S-3 ASR No. 333-219554

Form S-4 No. 333-220583

Form S-3 ASR No. 333-233701

Form S-8 No. 333-238698

Form S-3 ASR No. 333-262089

of our report dated February 19, 2026 relating to the 2025 consolidated financial statements and effectiveness of internal control over financial reporting, appearing in this Annual Report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crowe LLP

Louisville, Kentucky

February 19, 2026

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATIONS**

I, Archie M. Brown, President and Chief Executive Officer of First Financial Bancorp., certify that:

1. I have reviewed this annual report on Form 10-K of First Financial Bancorp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | 2/19/2026 | /s/ Archie M. Brown |
| | | Archie M. Brown<br>President and Chief Executive Officer |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATIONS**

I, James M. Anderson, Executive Vice President, Chief Financial Officer and Chief Operating Officer of First Financial Bancorp., certify that:

1. I have reviewed this annual report on Form 10-K of First Financial Bancorp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | 2/19/2026 | /s/ James M. Anderson |
| | | James M. Anderson<br>Executive Vice President, Chief Financial Officer and Chief Operating Officer |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION OF PERIODIC FINANCIAL REPORT BY CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Form 10-K for the annual period ended December 31, 2025, of First Financial Bancorp. (the "Company"), as filed with the Securities and Exchange Commission on February 19, 2026 (the "Report"), I, Archie M. Brown, President and Chief Executive Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Archie M. Brown |
| Archie M. Brown<br>President and Chief Executive Officer |
| February 19, 2026 |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION OF PERIODIC FINANCIAL REPORT BY CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Form 10-K for the annual period ended December 31, 2025, of First Financial Bancorp. (the "Company"), as filed with the Securities and Exchange Commission on February 19, 2026 (the "Report"), I, James M. Anderson, Executive Vice President, Chief Financial Officer and Chief Operating Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ James M. Anderson |
| James M. Anderson<br>Executive Vice President, Chief Financial Officer and Chief Operating Officer |
| February 19, 2026 |

---

<br>