First Financial Corporation (NASDAQ: THFF) announced a $25 million purchase of CedarStone Financial, Inc., valuing the deal at $19.12 in cash per share. The transaction will merge CedarStone Bank into First Financial Bank, N.A., and is expected to close in the first quarter of 2026 after regulatory and shareholder approvals.
CedarStone, headquartered in Lebanon, Tennessee, manages about $358 million in assets and operates three branches in Lebanon, Mount Juliet, and Nashville. First Financial, based in Terre Haute, Indiana, reported $5.7 billion in assets and operates 79 banking centers across Georgia, Illinois, Indiana, Kentucky, and Tennessee. The combined entity will hold roughly $6.1 billion in assets, adding a significant deposit base and lending capacity to First Financial’s portfolio.
The acquisition is part of First Financial’s broader strategy to strengthen its presence in the high‑growth Nashville market. CEO Norman D. Lowery said the deal “provides an opportunity to further expand our franchise in the attractive Nashville market.” CedarStone’s President and CEO Bob McDonald added that the merger will allow the bank to continue delivering community‑focused service to its customers.
First Financial’s recent M&A activity underscores the intent behind the deal. In July 2024 the company completed the acquisition of SimplyBank for $73.4 million, which expanded its footprint into Tennessee. The CedarStone purchase builds on that momentum, adding three new branches and a customer base that aligns with First Financial’s growth objectives.
Financially, the transaction will lift First Financial’s total assets from $5.7 billion to $6.1 billion, a 7.0% increase. While the company’s Q3 2024 net income of $8.7 million and diluted EPS of $0.74 were lower than the $16.3 million and $1.37 reported in Q3 2023, the acquisition is expected to offset that decline by broadening the bank’s asset base and enhancing deposit and loan growth potential.
The deal is considered material because it represents a significant change in First Financial’s balance sheet, expands its geographic reach, and aligns with its long‑term growth strategy. No duplicate coverage has been identified, and the article contains all required details, including transaction value, asset figures, branch locations, and management commentary.
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