| LOANS AND LEASES |
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.
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, lease or 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 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.
The following table sets forth the Company's loan portfolio at June 30, 2025 by risk attribute and origination date as well as current period gross chargeoffs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Term Total | | Revolving | | Total | | Commercial & industrial | | | | | | | | | | | | | | | | | | Pass | | $ | 536,360 | | | $ | 666,093 | | | $ | 580,092 | | | $ | 502,435 | | | $ | 226,018 | | | $ | 330,558 | | | $ | 2,841,556 | | | $ | 972,981 | | | $ | 3,814,537 | | | Special mention | | 4,072 | | | 1,288 | | | 1,065 | | | 3,091 | | | 6,470 | | | 10,947 | | | 26,933 | | | 23,595 | | | 50,528 | | | Substandard | | 1,126 | | | 4,961 | | | 11,017 | | | 12,565 | | | 5,372 | | | 3,810 | | | 38,851 | | | 23,855 | | | 62,706 | | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | Total | | $ | 541,558 | | | $ | 672,342 | | | $ | 592,174 | | | $ | 518,091 | | | $ | 237,860 | | | $ | 345,315 | | | $ | 2,907,340 | | | $ | 1,020,431 | | | $ | 3,927,771 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 728 | | | $ | 8,214 | | | $ | 3,511 | | | $ | 147 | | | $ | 425 | | | $ | 13,025 | | | $ | 149 | | | $ | 13,174 | | | Lease financing | | | | | | | | | | | | | | | | | | | | Pass | | $ | 73,288 | | | $ | 241,385 | | | $ | 184,705 | | | $ | 56,555 | | | $ | 9,429 | | | $ | 4,597 | | | $ | 569,959 | | | $ | 0 | | | $ | 569,959 | | | Special mention | | 0 | | 184 | | 123 | | 5,234 | | 0 | | 0 | | 5,541 | | 0 | | 5,541 | | Substandard | | 750 | | 62 | | 5,440 | | 4,722 | | 570 | | 132 | | 11,676 | | 0 | | 11,676 | | Doubtful | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | | Total | | $ | 74,038 | | | $ | 241,631 | | | $ | 190,268 | | | $ | 66,511 | | | $ | 9,999 | | | $ | 4,729 | | | $ | 587,176 | | | $ | 0 | | | $ | 587,176 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 491 | | | $ | 1,060 | | | $ | 495 | | | $ | 0 | | | $ | 14 | | | $ | 2,060 | | | $ | 0 | | | $ | 2,060 | | | Construction real estate | | | | | | | | | | | | | | | | | | Pass | | $ | 68,112 | | | $ | 198,271 | | | $ | 186,387 | | | $ | 185,842 | | | $ | 40,687 | | | $ | 7,607 | | | $ | 686,906 | | | $ | 0 | | | $ | 686,906 | | | Special mention | | 0 | | | 0 | | | 0 | | | 13,500 | | | 0 | | | 16,360 | | | 29,860 | | | 0 | | | 29,860 | | | Substandard | | 0 | | | 0 | | | 0 | | | 14,646 | | | 0 | | | 1,365 | | | 16,011 | | | 0 | | | 16,011 | | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | Total | | $ | 68,112 | | | $ | 198,271 | | | $ | 186,387 | | | $ | 213,988 | | | $ | 40,687 | | | $ | 25,332 | | | $ | 732,777 | | | $ | 0 | | | $ | 732,777 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | Commercial real estate - investor | | | | | | | | | | | | | | | | | | Pass | | $ | 202,130 | | | $ | 422,019 | | | $ | 389,442 | | | $ | 482,321 | | | $ | 287,536 | | | $ | 1,073,507 | | | $ | 2,856,955 | | | $ | 31,621 | | | $ | 2,888,576 | | | Special mention | | 12,485 | | | 0 | | | 17,040 | | | 13,284 | | | 0 | | | 29,071 | | | 71,880 | | | 0 | | | 71,880 | | | Substandard | | 0 | | | 0 | | | 0 | | | 10,600 | | | 0 | | | 36,183 | | | 46,783 | | | 0 | | | 46,783 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Term Total | | Revolving | | Total | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | Total | | $ | 214,615 | | | $ | 422,019 | | | $ | 406,482 | | | $ | 506,205 | | | $ | 287,536 | | | $ | 1,138,761 | | | $ | 2,975,618 | | | $ | 31,621 | | | $ | 3,007,239 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | Commercial real estate - owner | | | | | | | | | | | | | | | | | | Pass | | $ | 68,712 | | | $ | 195,741 | | | $ | 119,095 | | | $ | 150,386 | | | $ | 86,718 | | | $ | 284,627 | | | $ | 905,279 | | | $ | 20,241 | | | $ | 925,520 | | | Special mention | | 369 | | | 574 | | | 0 | | | 207 | | | 1,754 | | | 7,564 | | | 10,468 | | | 0 | | | 10,468 | | | Substandard | | 106 | | | 2,635 | | | 0 | | | 1,001 | | | 2,408 | | | 12,136 | | | 18,286 | | | 0 | | | 18,286 | | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | Total | | $ | 69,187 | | | $ | 198,950 | | | $ | 119,095 | | | $ | 151,594 | | | $ | 90,880 | | | $ | 304,327 | | | $ | 934,033 | | | $ | 20,241 | | | $ | 954,274 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | Residential real estate | | | | | | | | | | | | | | | | | | | | Performing | | $ | 49,102 | | | $ | 144,663 | | | $ | 323,605 | | | $ | 316,682 | | | $ | 224,425 | | | $ | 414,223 | | | $ | 1,472,700 | | | $ | 0 | | | $ | 1,472,700 | | | Nonperforming | | 0 | | | 580 | | | 625 | | | 2,341 | | | 4,651 | | | 11,791 | | | 19,988 | | | 0 | | | 19,988 | | | Total | | $ | 49,102 | | | $ | 145,243 | | | $ | 324,230 | | | $ | 319,023 | | | $ | 229,076 | | | $ | 426,014 | | | $ | 1,492,688 | | | $ | 0 | | | $ | 1,492,688 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 16 | | | $ | 16 | | | $ | 0 | | | $ | 16 | | | Home equity | | | | | | | | | | | | | | | | | | | | Performing | | $ | 20,269 | | | $ | 29,270 | | | $ | 22,125 | | | $ | 18,940 | | | $ | 22,976 | | | $ | 44,063 | | | $ | 157,643 | | | $ | 740,427 | | | $ | 898,070 | | | Nonperforming | | 66 | | | 15 | | | 199 | | | 285 | | | 119 | | | 468 | | | 1,152 | | | 4,077 | | | 5,229 | | | Total | | $ | 20,335 | | | $ | 29,285 | | | $ | 22,324 | | | $ | 19,225 | | | $ | 23,095 | | | $ | 44,531 | | | $ | 158,795 | | | $ | 744,504 | | | $ | 903,299 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 14 | | | $ | 0 | | | $ | 8 | | | $ | 80 | | | $ | 102 | | | $ | 84 | | | $ | 186 | | | Installment | | | | | | | | | | | | | | | | | | | | Performing | | $ | 8,119 | | | $ | 9,229 | | | $ | 6,371 | | | $ | 15,695 | | | $ | 7,446 | | | $ | 4,622 | | | $ | 51,482 | | | $ | 63,407 | | | $ | 114,889 | | | Nonperforming | | 77 | | | 46 | | | 54 | | | 350 | | | 280 | | | 38 | | | 845 | | | 864 | | | 1,709 | | | Total | | $ | 8,196 | | | $ | 9,275 | | | $ | 6,425 | | | $ | 16,045 | | | $ | 7,726 | | | $ | 4,660 | | | $ | 52,327 | | | $ | 64,271 | | | $ | 116,598 | | | YTD Gross chargeoffs | | $ | 6 | | | $ | 541 | | | $ | 533 | | | $ | 993 | | | $ | 352 | | | $ | 9 | | | $ | 2,434 | | | $ | 7 | | | $ | 2,441 | | | Credit cards | | | | | | | | | | | | | | | | | | | | Performing | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 64,087 | | | $ | 64,087 | | | Nonperforming | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 287 | | | 287 | | | Total | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 64,374 | | | $ | 64,374 | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 963 | | | $ | 963 | | | Total Loans | | $ | 1,045,143 | | | $ | 1,917,016 | | | $ | 1,847,385 | | | $ | 1,810,682 | | | $ | 926,859 | | | $ | 2,293,669 | | | $ | 9,840,754 | | | $ | 1,945,442 | | | $ | 11,786,196 | | | Total YTD Gross Chargeoffs | | $ | 6 | | | $ | 1,760 | | | $ | 9,821 | | | $ | 4,999 | | | $ | 507 | | | $ | 544 | | | $ | 17,637 | | | $ | 1,203 | | | $ | 18,840 | |
The following table sets forth the Company's loan portfolio at December 31, 2024 by risk attribute and origination date: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Term Total | | Revolving | | Total | | | | | | | | | | | | | | Commercial & industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 819,600 | | | $ | 710,857 | | | $ | 592,046 | | | $ | 298,770 | | | $ | 162,136 | | | $ | 241,857 | | | $ | 2,825,266 | | | $ | 890,880 | | | $ | 3,716,146 | | | | | | | | | | | | | | | Special mention | | 5,594 | | | 1,964 | | | 1,971 | | | 620 | | | 2,859 | | | 71 | | | 13,079 | | | 16,211 | | | 29,290 | | | | | | | | | | | | | | | Substandard | | 4,873 | | | 3,433 | | | 22,508 | | | 8,533 | | | 347 | | | 4,309 | | | 44,003 | | | 26,419 | | | 70,422 | | | | | | | | | | | | | | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | Total | | $ | 830,067 | | | $ | 716,254 | | | $ | 616,525 | | | $ | 307,923 | | | $ | 165,342 | | | $ | 246,237 | | | $ | 2,882,348 | | | $ | 933,510 | | | $ | 3,815,858 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 318 | | | $ | 1,264 | | | $ | 5,293 | | | $ | 4,106 | | | $ | 147 | | | $ | 3,295 | | | $ | 14,423 | | | $ | 225 | | | $ | 14,648 | | | | | | | | | | | | | | | Lease financing | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 228,132 | | | $ | 253,776 | | | $ | 70,608 | | | $ | 11,480 | | | $ | 5,309 | | | $ | 1,137 | | | $ | 570,442 | | | $ | 0 | | | $ | 570,442 | | | | | | | | | | | | | | | Special mention | | 0 | | 644 | | 10,171 | | 550 | | 0 | | 0 | | 11,365 | | 0 | | 11,365 | | | | | | | | | | | | | | | Substandard | | 292 | | 10,225 | | 4,893 | | 129 | | 8 | | 691 | | 16,238 | | 0 | | 16,238 | | | | | | | | | | | | | | Doubtful | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | | | | | | | | | | | | | | Total | | $ | 228,424 | | | $ | 264,645 | | | $ | 85,672 | | | $ | 12,159 | | | $ | 5,317 | | | $ | 1,828 | | | $ | 598,045 | | | $ | 0 | | | $ | 598,045 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 1,008 | | | $ | 451 | | | $ | 66 | | | $ | 0 | | | $ | 1,867 | | | $ | 3,392 | | | $ | 0 | | | $ | 3,392 | | | | | | | | | | | | | | | Construction real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 139,377 | | | $ | 213,300 | | | $ | 322,493 | | | $ | 40,740 | | | $ | 1,590 | | | $ | 17,352 | | | $ | 734,852 | | | $ | 0 | | | $ | 734,852 | | | | | | | | | | | | | | | Special mention | | 3,525 | | | 0 | | | 12,737 | | | 0 | | | 17,832 | | | 0 | | | 34,094 | | | 0 | | | 34,094 | | | | | | | | | | | | | | | Substandard | | 0 | | | 0 | | | 0 | | | 10,500 | | | 0 | | | 0 | | | 10,500 | | | 0 | | | 10,500 | | | | | | | | | | | | | | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | Total | | $ | 142,902 | | | $ | 213,300 | | | $ | 335,230 | | | $ | 51,240 | | | $ | 19,422 | | | $ | 17,352 | | | $ | 779,446 | | | $ | 0 | | | $ | 779,446 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | | | Commercial real estate - investor | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 515,950 | | | $ | 376,740 | | | $ | 497,047 | | | $ | 340,115 | | | $ | 231,922 | | | $ | 949,772 | | | $ | 2,911,546 | | | $ | 36,716 | | | $ | 2,948,262 | | | | | | | | | | | | | | | Special mention | | 13,738 | | | 30,454 | | | 18,423 | | | 4,282 | | | 106 | | | 27,144 | | | 94,147 | | | 0 | | | 94,147 | | | | | | | | | | | | | | | Substandard | | 0 | | | 0 | | | 10,600 | | | 0 | | | 4,950 | | | 35,425 | | | 50,975 | | | 0 | | | 50,975 | | | | | | | | | | | | | | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | Total | | $ | 529,688 | | | $ | 407,194 | | | $ | 526,070 | | | $ | 344,397 | | | $ | 236,978 | | | $ | 1,012,341 | | | $ | 3,056,668 | | | $ | 36,716 | | | $ | 3,093,384 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 788 | | | $ | 9,837 | | | $ | 10,625 | | | $ | 0 | | | $ | 10,625 | | | | | | | | | | | | | | | Commercial real estate - owner | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 202,580 | | | $ | 126,550 | | | $ | 161,401 | | | $ | 94,052 | | | $ | 128,068 | | | $ | 215,902 | | | $ | 928,553 | | | $ | 17,268 | | | $ | 945,821 | | | | | | | | | | | | | | | Special mention | | 1,839 | | | 134 | | | 213 | | | 2,210 | | | 504 | | | 1,173 | | | 6,073 | | | 0 | | | 6,073 | | | | | | | | | | | | | | | Substandard | | 0 | | | 0 | | | 858 | | | 3,159 | | | 1,249 | | | 11,200 | | | 16,466 | | | 0 | | | 16,466 | | | | | | | | | | | | | | | Doubtful | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | Total | | $ | 204,419 | | | $ | 126,684 | | | $ | 162,472 | | | $ | 99,421 | | | $ | 129,821 | | | $ | 228,275 | | | $ | 951,092 | | | $ | 17,268 | | | $ | 968,360 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 8 | | | $ | 8 | | | $ | 0 | | | $ | 8 | | | | | | | | | | | | | | | Residential real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 129,008 | | | $ | 321,232 | | | $ | 324,180 | | | $ | 233,355 | | | $ | 169,901 | | | $ | 264,312 | | | $ | 1,441,988 | | | $ | 0 | | | $ | 1,441,988 | | | | | | | | | | | | | | | Nonperforming | | 198 | | | 541 | | | 1,323 | | | 4,412 | | | 4,300 | | | 9,522 | | | 20,296 | | | 0 | | | 20,296 | | | | | | | | | | | | | | | Total | | $ | 129,206 | | | $ | 321,773 | | | $ | 325,503 | | | $ | 237,767 | | | $ | 174,201 | | | $ | 273,834 | | | $ | 1,462,284 | | | $ | 0 | | | $ | 1,462,284 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 25 | | | $ | 16 | | | $ | 0 | | | $ | 102 | | | $ | 143 | | | $ | 0 | | | $ | 143 | | | | | | | | | | | | | | | Home equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 30,799 | | | $ | 23,969 | | | $ | 20,280 | | | $ | 24,878 | | | $ | 28,882 | | | $ | 21,160 | | | $ | 149,968 | | | $ | 692,993 | | | $ | 842,961 | | | | | | | | | | | | | | | Nonperforming | | 61 | | | 328 | | | 124 | | | 144 | | | 7 | | | 354 | | | 1,018 | | | 5,060 | | | 6,078 | | | | | | | | | | | | | | | Total | | $ | 30,860 | | | $ | 24,297 | | | $ | 20,404 | | | $ | 25,022 | | | $ | 28,889 | | | $ | 21,514 | | | $ | 150,986 | | | $ | 698,053 | | | $ | 849,039 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 37 | | | $ | 37 | | | $ | 0 | | | $ | 186 | | | $ | 5 | | | $ | 182 | | | $ | 447 | | | $ | 0 | | | $ | 447 | | | | | | | | | | | | | | | Installment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 12,356 | | | $ | 9,997 | | | $ | 22,244 | | | $ | 11,500 | | | $ | 2,004 | | | $ | 3,759 | | | $ | 61,860 | | | $ | 69,153 | | | $ | 131,013 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Term Total | | Revolving | | Total | | | | | | | | | | | | | | Nonperforming | | 190 | | | 116 | | | 607 | | | 268 | | | 20 | | | 16 | | | 1,217 | | | 821 | | | 2,038 | | | | | | | | | | | | | | | Total | | $ | 12,546 | | | $ | 10,113 | | | $ | 22,851 | | | $ | 11,768 | | | $ | 2,024 | | | $ | 3,775 | | | $ | 63,077 | | | $ | 69,974 | | | $ | 133,051 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 382 | | | $ | 1,120 | | | $ | 4,066 | | | $ | 1,779 | | | $ | 71 | | | $ | 42 | | | $ | 7,460 | | | $ | 0 | | | $ | 7,460 | | | | | | | | | | | | | | | Credit cards | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 61,969 | | | $ | 61,969 | | | | | | | | | | | | | | | Nonperforming | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 342 | | | 342 | | | | | | | | | | | | | | | Total | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 62,311 | | | $ | 62,311 | | | | | | | | | | | | | | | YTD Gross chargeoffs | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 2,586 | | | $ | 2,586 | | | | | | | | | | | | | | | Total Loans | | $ | 2,108,112 | | | $ | 2,084,260 | | | $ | 2,094,727 | | | $ | 1,089,697 | | | $ | 761,994 | | | $ | 1,805,156 | | | $ | 9,943,946 | | | $ | 1,817,832 | | | $ | 11,761,778 | | | | | | | | | | | | | | | Total YTD Gross Chargeoffs | | $ | 737 | | | $ | 3,429 | | | $ | 9,835 | | | $ | 6,153 | | | $ | 1,011 | | | $ | 15,333 | | | $ | 36,498 | | | $ | 2,811 | | | $ | 39,309 | | | | | | | | | | | | | |
Delinquency. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the date of the scheduled payment.
Loan delinquency, including loans classified as nonaccrual, was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2025 | | (Dollars in thousands) | | 30 – 59
days
past due | | 60 – 89
days
past due | | > 89 days
past due | | Total
past
due | | Current | | Total | | > 89 days
past due
and still
accruing | | Loans | | | | | | | | | | | | | | | | Commercial & industrial | | $ | 2,089 | | | $ | 1,825 | | | $ | 1,731 | | | $ | 5,645 | | | $ | 3,922,126 | | | $ | 3,927,771 | | | $ | 0 | | | Lease financing | | 452 | | | 772 | | | 4,758 | | | 5,982 | | | 581,194 | | | 587,176 | | | 427 | | | Construction real estate | | 0 | | | 0 | | | 1,365 | | | 1,365 | | | 731,412 | | | 732,777 | | | 0 | | | Commercial real estate-investor | | 3,892 | | | 0 | | | 13,871 | | | 17,763 | | | 2,989,476 | | | 3,007,239 | | | 0 | | | Commercial real estate-owner | | 1,746 | | | 306 | | | 6,646 | | | 8,698 | | | 945,576 | | | 954,274 | | | 0 | | | Residential real estate | | 3,809 | | | 1,188 | | | 4,403 | | | 9,400 | | | 1,483,288 | | | 1,492,688 | | | 0 | | | Home equity | | 1,741 | | | 525 | | | 1,682 | | | 3,948 | | | 899,351 | | | 903,299 | | | 0 | | | Installment | | 694 | | | 401 | | | 474 | | | 1,569 | | | 115,029 | | | 116,598 | | | 0 | | | Credit card | | 377 | | | 202 | | | 288 | | | 867 | | | 63,507 | | | 64,374 | | | 287 | | | Total | | $ | 14,800 | | | $ | 5,219 | | | $ | 35,218 | | | $ | 55,237 | | | $ | 11,730,959 | | | $ | 11,786,196 | | | $ | 714 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2024 | | (Dollars in thousands) | | 30 – 59
days
past due | | 60 – 89
days
past due | | > 89 days
past due | | Total
past
due | | Current | | Total | | > 89 days
past due
and still
accruing | | Loans | | | | | | | | | | | | | | | | Commercial & industrial | | $ | 4,521 | | | $ | 1,598 | | | $ | 2,470 | | | $ | 8,589 | | | $ | 3,807,269 | | | $ | 3,815,858 | | | $ | 0 | | | Lease financing | | 3,096 | | | 3,085 | | | 3,386 | | | 9,567 | | | 588,478 | | | 598,045 | | | 19 | | | Construction real estate | | 0 | | | 10,500 | | | 0 | | | 10,500 | | | 768,946 | | | 779,446 | | | 0 | | | Commercial real estate-investor | | 0 | | | 0 | | | 17,360 | | | 17,360 | | | 3,076,024 | | | 3,093,384 | | | 0 | | | Commercial real estate-owner | | 856 | | | 0 | | | 6,144 | | | 7,000 | | | 961,360 | | | 968,360 | | | 0 | | | Residential real estate | | 6,217 | | | 154 | | | 5,968 | | | 12,339 | | | 1,449,945 | | | 1,462,284 | | | 0 | | | Home equity | | 1,902 | | | 1,102 | | | 1,428 | | | 4,432 | | | 844,607 | | | 849,039 | | | 0 | | | Installment | | 914 | | | 569 | | | 402 | | | 1,885 | | | 131,166 | | | 133,051 | | | 0 | | | Credit card | | 450 | | | 196 | | | 342 | | | 988 | | | 61,323 | | | 62,311 | | | 342 | | | Total | | $ | 17,956 | | | $ | 17,204 | | | $ | 37,500 | | | $ | 72,660 | | | $ | 11,689,118 | | | $ | 11,761,778 | | | $ | 361 | |
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 or 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 of FDMs that were granted modifications during the respective periods: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 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 | | | $ | 1,700 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 1,700 | | | 0.04 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate | | 0 | | | 1,513 | | | 233 | | | 0 | | | 0 | | | 1,746 | | | 0.12 | % | | Home equity | | 0 | | | 786 | | | 0 | | | 0 | | | 0 | | | 786 | | 0.09 | % | | | | | | | | | | | | | | | | | Total | | $ | 0 | | | $ | 3,999 | | | $ | 233 | | | $ | 0 | | | $ | 0 | | | $ | 4,232 | | | 0.04 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 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 | | | $ | 5,697 | | | $ | 10,353 | | | $ | 0 | | | $ | 0 | | | $ | 16,050 | | | 0.42 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate | | 0 | | | 488 | | | 0 | | | 0 | | | 0 | | | 488 | | | 0.04 | % | | Home equity | | 0 | | | 200 | | | 0 | | | 0 | | | 0 | | | 200 | | 0.02 | % | | | | | | | | | | | | | | | | | Total | | $ | 0 | | | $ | 6,385 | | | $ | 10,353 | | | $ | 0 | | | $ | 0 | | | $ | 16,738 | | | 0.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 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 | | | $ | 1,700 | | | $ | 219 | | | $ | 0 | | | $ | 0 | | | $ | 1,919 | | | 0.05 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate-investor | | 0 | | | 2,274 | | | 0 | | | 0 | | | 0 | | | 2,274 | | | 0.08 | % | | | | | | | | | | | | | | | | | Residential real estate | | 0 | | | 2,161 | | | 233 | | | 0 | | | 0 | | | 2,394 | | | 0.16 | % | | Home equity | | 0 | | | 852 | | | 0 | | | 0 | | | 0 | | | 852 | | 0.09 | % | | | | | | | | | | | | | | | | | Total | | $ | 0 | | | $ | 6,987 | | | $ | 452 | | | $ | 0 | | | $ | 0 | | | $ | 7,439 | | | 0.06 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 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 | | | $ | 5,697 | | | $ | 18,242 | | | $ | 0 | | | $ | 0 | | | $ | 23,939 | | | 0.63 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate | | 0 | | | 1,042 | | | 0 | | | 0 | | | 0 | | | 1,042 | | | 0.08 | % | | Home equity | | 0 | | | 240 | | | 0 | | | 0 | | | 0 | | | 240 | | 0.03 | % | | | | | | | | | | | | | | | | | Total | | $ | 0 | | | $ | 6,979 | | | $ | 18,242 | | | $ | 0 | | | $ | 0 | | | $ | 25,221 | | | 0.22 | % |
The following table provides the financial effect of FDMs granted during the respective periods: | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | (Dollars in thousands) | | Principal forgiveness | | Weighted average interest rate reduction | | Weighted average term extension | | Commercial & industrial | | $ | 0 | | | 0.00 | % | | 0.0 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate | | 0 | | | 0.00 | % | | 3.5 years | | | | | | | | | | | | | | | | Total | | $ | 0 | | | 0.00 | % | | 3.5 years | | | | | | | | | | Three months ended June 30, 2024 | | (Dollars in thousands) | | Principal forgiveness | | Weighted average interest rate reduction | | Weighted average term extension | | Commercial & industrial | | $ | 0 | | | 0.00 | % | | 0.6 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | $ | 0 | | | 0.00 | % | | 0.6 years |
| | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 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 | % | | 3.5 years | | | | | | | | | | | | | | | | Total | | $ | 0 | | | 0.00 | % | | 2.0 years | | | | | | | | | | Six months ended June 30, 2024 | | (Dollars in thousands) | | Principal forgiveness | | Weighted average interest rate reduction | | Weighted average term extension | | Commercial & industrial | | $ | 0 | | | 0.00 | % | | 0.4 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | $ | 0 | | | 0.00 | % | | 0.4 years |
The Company has committed to lend no additional amounts to the borrowers who have been classified as FDM as of either June 30, 2025 or June 30, 2024. Additionally, there were three FDMs totaling $0.1 million that defaulted during the three months ended June 30, 2025, and 13 FDMs totaling $1.2 million that defaulted during the six months ended June 30, 2025, that were classified as FDMs during the twelve months preceding the default date. There were two FDMs with a balance of $0.2 million that defaulted during the three months ended June 30, 2024, and five FDMs with a balance of $0.4 million that defaulted during the six months ended June 30, 2024, that were classified as FDMs during the twelve months preceding the default date.
The Company closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified during the twelve months preceding June 30, 2025 and 2024. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Twelve months ended June 30, 2025 | | (Dollars in thousands) | | Current | | 30 – 59 days past due | | 60 – 89 days past due | | > 89 days past due | | Total | | Commercial & industrial | | $ | 2,291 | | | $ | 0 | | | $ | 0 | | | $ | 367 | | | $ | 2,658 | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate-investor | | 2,274 | | | 0 | | | 0 | | | 0 | | | 2,274 | | | | | | | | | | | | | | Residential real estate | | 3,420 | | | 77 | | | 0 | | | 137 | | | 3,634 | | | Home equity | | 945 | | | 64 | | | 0 | | | 98 | | | 1,107 | | | | | | | | | | | | | | Total | | $ | 8,930 | | | $ | 141 | | | $ | 0 | | | $ | 602 | | | $ | 9,673 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Twelve months ended June 30, 2024 | | (Dollars in thousands) | | Current | | 30 – 59 days past due | | 60 – 89 days past due | | > 89 days past due | | Total | | Commercial & industrial | | $ | 24,101 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 24,101 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate | | 1,355 | | | 84 | | | 387 | | | 77 | | | 1,903 | | | Home equity | | 255 | | | 0 | | | 0 | | | 0 | | | 255 | | | | | | | | | | | | | | Total | | $ | 25,711 | | | $ | 84 | | | $ | 387 | | | $ | 77 | | | $ | 26,259 | |
Nonaccrual loans. 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:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | (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 | | | | | | | | | | | | | | Commercial & industrial | | $ | 18,892 | | | $ | 5,597 | | | $ | 24,489 | | | $ | 1,939 | | | $ | 4,702 | | | $ | 6,641 | | | Lease financing | | 5,132 | | | 1,111 | | | 6,243 | | | 1,982 | | | 4,245 | | | 6,227 | | | Construction real estate | | 1,365 | | | 0 | | | 1,365 | | | 0 | | | 0 | | | 0 | | | Commercial real estate | | 2,392 | | | 21,513 | | | 23,905 | | | 0 | | | 32,303 | | | 32,303 | | | Residential real estate | | 0 | | | 16,995 | | | 16,995 | | | 0 | | | 16,700 | | | 16,700 | | | Home equity | | 0 | | | 3,226 | | | 3,226 | | | 0 | | | 3,418 | | | 3,418 | | | Installment | | 0 | | | 701 | | | 701 | | | 0 | | | 684 | | | 684 | | | Total nonaccrual loans | | $ | 27,781 | | | $ | 49,143 | | | $ | 76,924 | | | $ | 3,921 | | | $ | 62,052 | | | $ | 65,973 | |
Interest income recognized on loans and leases while on nonaccrual was insignificant for the both the three and six months ended June 30, 2025 and was $0.3 million for the three months ended June 30, 2024 and $0.6 million for the six months ended June 30, 2024. 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | Type of Collateral | | (Dollar in thousands) | | Business
assets | | Commercial real estate | | Equipment | | Land | | Residential real estate | | Other | | Total | | Class of loan | | | | | | | | | | | | | | | | Commercial & industrial | | $ | 8,854 | | | $ | 0 | | | $ | 6,933 | | | $ | 0 | | | $ | 0 | | | $ | 8,702 | | | $ | 24,489 | | | Lease financing | | 0 | | 0 | | | 6,243 | | | 0 | | | 0 | | | 0 | | | 6,243 | | | Construction real estate | | 0 | | 1,365 | | | 0 | | | 0 | | | 0 | | | 0 | | | 1,365 | | | Commercial real estate-investor | | 0 | | 13,970 | | | 0 | | | 0 | | | 49 | | | 0 | | | 14,019 | | | Commercial real estate-owner | | 0 | | 7,992 | | | 1,894 | | | 0 | | | 0 | | | 0 | | | 9,886 | | | Residential real estate | | 0 | | 0 | | | 0 | | | 0 | | | 16,995 | | | 0 | | | 16,995 | | | Home equity | | 0 | | 0 | | 0 | | 0 | | 3,226 | | | 0 | | | 3,226 | | | Installment | | 0 | | 0 | | 0 | | 0 | | 0 | | | 701 | | | 701 | | | Total | | $ | 8,854 | | | $ | 23,327 | | | $ | 15,070 | | | $ | 0 | | | $ | 20,270 | | | $ | 9,403 | | | $ | 76,924 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | Type of Collateral | | (Dollar in thousands) | | Business
assets | | Commercial real estate | | Equipment | | Land | | Residential real estate | | Other | | Total | | Class of loan | | | | | | | | | | | | | | | | Commercial & industrial | | $ | 2,527 | | | $ | 0 | | | $ | 1,434 | | | $ | 0 | | | $ | 0 | | | $ | 2,680 | | | $ | 6,641 | | | Lease financing | | 0 | | 0 | | | 6,227 | | | 0 | | | 0 | | | 0 | | | 6,227 | | | Commercial real estate-investor | | 0 | | 26,132 | | | 0 | | | 0 | | | 27 | | | 0 | | | 26,159 | | | Commercial real estate-owner | | 0 | | 4,250 | | | 1,894 | | | 0 | | | 0 | | | 0 | | | 6,144 | | | Residential real estate | | 0 | | 0 | | | 0 | | | 0 | | | 16,700 | | | 0 | | | 16,700 | | | Home equity | | 0 | | 0 | | 0 | | 0 | | 3,418 | | | 0 | | | 3,418 | | | Installment | | 0 | | 0 | | 0 | | 0 | | 0 | | | 684 | | | 684 | | | Total | | $ | 2,527 | | | $ | 30,382 | | | $ | 9,555 | | | $ | 0 | | | $ | 20,145 | | | $ | 3,364 | | | $ | 65,973 | |
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:
| | | | | | | | | | | | | | | | (Dollar in thousands) | | June 30, 2025 | | December 31, 2024 | | Direct financing and sales-type leases | | | | | | Lease receivables | | $ | 576,558 | | | $ | 581,651 | | | Unguaranteed residual values | | 10,618 | | | 16,394 | | | Total net investment in direct financing and sales-type leases | | $ | 587,176 | | | $ | 598,045 | |
Interest income for direct financing and sales-type leases was $9.8 million and $8.9 million for the three months ended June 30, 2025 and June 30, 2024, respectively. Interest income for direct financing and sales-type leases was $18.8 million and $17.3 million for the six months ended June 30, 2025 and June 30, 2024, respectively.
The remaining maturities of lease receivables were as follows: | | | | | | | | | | (Dollars in thousands) | | Direct financing and Sales-type | | Remainder of 2025 | | $ | 106,005 | | | 2026 | | 190,446 | | | 2027 | | 161,613 | | | 2028 | | 99,429 | | | 2029 | | 58,062 | | | Thereafter | | 38,605 | | | Total lease payments | | 654,160 | | | Less: unearned income | | (77,602) | | | Net lease receivables | | $ | 576,558 | |
OREO. OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, that results in partial or total satisfaction of problem loans.
Changes in OREO were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | | | June 30, | | June 30, | | (Dollars in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | Balance at beginning of period | | $ | 213 | | | $ | 161 | | | $ | 64 | | | $ | 106 | | | Additions | | | | | | | | | | Commercial real estate | | 0 | | | 0 | | | 0 | | | 0 | | | Residential real estate | | 0 | | | 0 | | | 149 | | | 55 | | | Total additions | | 0 | | | 0 | | | 149 | | | 55 | | | Disposals | | | | | | | | | | Commercial real estate | | 0 | | | 0 | | | 0 | | | 0 | | | Residential real estate | | 0 | | | (106) | | | 0 | | | (106) | | | Total disposals | | 0 | | | (106) | | | 0 | | | (106) | | | Valuation adjustment | | | | | | | | | | Commercial real estate | | 0 | | | 0 | | | 0 | | | 0 | | | Residential real estate | | (9) | | | (25) | | | (9) | | | (25) | | | Total valuation adjustment | | (9) | | | (25) | | | (9) | | | (25) | | | Balance at end of period | | $ | 204 | | | $ | 30 | | | $ | 204 | | | $ | 30 | |
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