Quoting the Java Language Specification, §14.20.4:
A try statement with a finally block is executed by first executing the try block. Then there is a choice:
* If execution of the try block completes normally, then the finally block is executed, and then there is a choice:
o If the finally block completes normally, then the try statement completes normally.
o If the finally block completes abruptly for reason S, then the try statement completes abruptly for reason S.
* If execution of the try block completes abruptly because of a throw of a value V, then there is a choice:
o If the run-time type of V is assignable to the parameter of any catch clause of the try statement, then the first (leftmost) such catch clause is selected. The value V is assigned to the parameter of the selected catch clause, and the Block of that catch clause is executed. Then there is a choice:
+ If the catch block completes normally, then the finally block is executed. Then there is a choice:
# If the finally block completes normally, then the try statement completes normally.
# If the finally block completes abruptly for any reason, then the try statement completes abruptly for the same reason.
+ If the catch block completes abruptly for reason R, then the finally block is executed. Then there is a choice:
# If the finally block completes normally, then the try statement completes abruptly for reason R.
# If the finally block completes abruptly for reason S, then the try statement completes abruptly for reason S (and reason R is discarded).
o If the run-time type of V is not assignable to the parameter of any catch clause of the try statement, then the finally block is executed. Then there is a choice:
+ If the finally block completes normally, then the try statement completes abruptly because of a throw of the value V.
+ If the finally block completes abruptly for reason S, then the try statement completes abruptly for reason S (and the throw of value V is discarded and forgotten).
* If execution of the try block completes abruptly for any other reason R, then the finally block is executed. Then there is a choice:
o If the finally block completes normally, then the try statement completes abruptly for reason R.
o If the finally block completes abruptly for reason S, then the try statement completes abruptly for reason S (and reason R is discarded).