First Financial in Indiana to buy CedarStone in Tennessee

First Financial in Terre Haute, Ind., has agreed to buy CedarStone Financial in Lebanon, Tenn.

The $5.7 billion-asset First Financial said in a press release that it will pay $25 million in cash for the $358 million-asset CedarStone. The deal, which is expected to close in the first quarter, priced CedarStone at 108% of its tangible book value.

“CedarStone provides us with an opportunity to further expand our franchise in the attractive Nashville market,” Norman Lowery, First Financial’s president and CEO, said in the release. “We look forward to continuing CedarStone’s commitment to creating meaningful customer relationships and serving the community.”

The deal should be 6.6% accretive to First Financial’s 2026 earnings per share. It should take a little more than two years for First Financial to earn back an estimated 3% dilution to its tangible book value.

First Financial plans to cut about 37% of CedarStone’s annual noninterest expense, while incurring $6.1 million of merger-related expenses.

First Financial was advised by Raymond James and Amundsen Davis. CedarStone was advised by Forvis Mazars Capital Advisors and Baker, Donelson, Bearman, Caldwell & Berkowitz. Hovde Group issued a fairness opinion to CedarStone.