LOANS AND LEASES (Tables)

9 Months Ended

Sep. 30, 2026

Financial Receivable Credit Quality Indicators

The following table sets forth the Company's loan portfolio at September 30, 2026 by risk attribute and origination date as well as current period gross chargeoffs:


(Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	1,391,302	$	852,037	$	436,808	$	339,804	$	255,316	$	400,141	$	3,675,408	$	1,116,348	$	4,791,756
Special mention	6,524		9,577		26,279		7,894		175		12,535		62,984		24,397		87,381
Substandard	4,858		5,514		7,811		1,771		3,913		7,164		31,031		38,212		69,243
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	1,402,684	$	867,128	$	470,898	$	349,469	$	259,404	$	419,840	$	3,769,423	$	1,178,957	$	4,948,380
YTD Gross chargeoffs	$	15	$	1,135	$	610	$	9,101	$	2,009	$	969	$	13,839	$	370	$	14,209
Lease financing
Pass	$	215,217	$	193,630	$	128,220	$	106,654	$	27,944	$	2,115	$	673,780	$	0	$	673,780
Special mention	0		0		35		1,895		0		0		1,930		0		1,930
Substandard	0		662		1,137		908		6		0		2,713		0		2,713
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	215,217	$	194,292	$	129,392	$	109,457	$	27,950	$	2,115	$	678,423	$	0	$	678,423
YTD Gross chargeoffs	$	0	$	229	$	139	$	944	$	974	$	47	$	2,333	$	0	$	2,333
Construction real estate
Pass	$	104,577	$	347,400	$	114,156	$	24,241	$	2,242	$	2,791	$	595,407	$	741	$	596,148
Special mention	0		313		0		299		9,585		0		10,197		0		10,197
Substandard	0		0		0		0		0		351		351		0		351
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	104,577	$	347,713	$	114,156	$	24,540	$	11,827	$	3,142	$	605,955	$	741	$	606,696
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	110	$	110	$	0	$	110


(Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Term Total		Revolving		Total
Commercial real estate - investor
Pass	$	523,582	$	592,482	$	351,337	$	255,210	$	393,122	$	1,032,980	$	3,148,713	$	37,447	$	3,186,160
Special mention	0		17,784		135		534		24,175		40,922		83,550		0		83,550
Substandard	0		14,550		304		14,702		27,740		73,034		130,330		0		130,330
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	523,582	$	624,816	$	351,776	$	270,446	$	445,037	$	1,146,936	$	3,362,593	$	37,447	$	3,400,040
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	3,467	$	3,756	$	7,223	$	0	$	7,223
Commercial real estate - owner
Pass	$	160,035	$	190,369	$	182,066	$	132,584	$	133,763	$	291,291	$	1,090,108	$	10,912	$	1,101,020
Special mention	937		5,359		5,020		4,317		194		8,477		24,304		0		24,304
Substandard	177		171		1,872		678		8,854		5,424		17,176		28		17,204
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	161,149	$	195,899	$	188,958	$	137,579	$	142,811	$	305,192	$	1,131,588	$	10,940	$	1,142,528
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	419	$	0	$	419	$	0	$	419
Residential real estate
Performing	$	80,285	$	169,786	$	175,327	$	291,893	$	334,812	$	732,233	$	1,784,336	$	0	$	1,784,336
Nonperforming	0		452		1,448		1,815		2,383		15,689		21,787		0		21,787
Total	$	80,285	$	170,238	$	176,775	$	293,708	$	337,195	$	747,922	$	1,806,123	$	0	$	1,806,123
YTD Gross chargeoffs	$	0	$	0	$	16	$	52	$	104	$	50	$	222	$	0	$	222
Home equity
Performing	$	38,260	$	34,689	$	22,567	$	16,745	$	15,317	$	52,126	$	179,704	$	916,662	$	1,096,366
Nonperforming	30		802		416		259		167		682		2,356		7,068		9,424
Total	$	38,290	$	35,491	$	22,983	$	17,004	$	15,484	$	52,808	$	182,060	$	923,730	$	1,105,790
YTD Gross chargeoffs	$	0	$	0	$	38	$	252	$	126	$	47	$	463	$	55	$	518
Installment
Performing	$	12,126	$	18,118	$	8,112	$	11,345	$	13,264	$	8,557	$	71,522	$	77,062	$	148,584
Nonperforming	216		287		90		107		338		234		1,272		629		1,901
Total	$	12,342	$	18,405	$	8,202	$	11,452	$	13,602	$	8,791	$	72,794	$	77,691	$	150,485
YTD Gross chargeoffs	$	86	$	770	$	561	$	464	$	545	$	313	$	2,739	$	29	$	2,768
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	66,035	$	66,035
Nonperforming	0		0		0		0		0		0		0		582		582
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	66,617	$	66,617
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	1,720	$	1,720
Total Loans	$	2,538,126	$	2,453,982	$	1,463,140	$	1,213,655	$	1,253,310	$	2,686,746	$	11,608,959	$	2,296,123	$	13,905,082
Total YTD Gross Chargeoffs	$	101	$	2,134	$	1,364	$	10,813	$	7,644	$	5,292	$	27,348	$	2,174	$	29,522

The following table sets forth the Company's loan portfolio at December 31, 2025 by risk attribute and origination date:


(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	1,271,775	$	677,609	$	573,100	$	416,504	$	195,513	$	370,281	$	3,504,782	$	983,377	$	4,488,159
Special mention	11,034		2,951		3,605		3,426		15,620		1,964		38,600		28,194		66,794
Substandard	5,264		6,635		18,335		9,918		5,780		4,883		50,815		26,473		77,288
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	1,288,073	$	687,195	$	595,040	$	429,848	$	216,913	$	377,128	$	3,594,197	$	1,038,044	$	4,632,241
YTD Gross chargeoffs	$	900	$	1,223	$	8,702	$	9,133	$	1,272	$	455	$	21,685	$	290	$	21,975
Lease financing
Pass	$	219,775	$	198,664	$	150,630	$	45,917	$	7,589	$	2,852	$	625,427	$	0	$	625,427
Special mention	0		44		50		0		0		0		94		0		94
Substandard	903		261		4,212		7,053		459		118		13,006		0		13,006
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	220,678	$	198,969	$	154,892	$	52,970	$	8,048	$	2,970	$	638,527	$	0	$	638,527
YTD Gross chargeoffs	$	0	$	762	$	1,605	$	858	$	32	$	19	$	3,276	$	0	$	3,276
Construction real estate
Pass	$	156,573	$	157,874	$	111,375	$	124,429	$	17,642	$	44,313	$	612,206	$	887	$	613,093
Special mention	0		0		0		32,549		0		16,209		48,758		0		48,758
Substandard	0		0		0		14,368		0		1,120		15,488		0		15,488
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	156,573	$	157,874	$	111,375	$	171,346	$	17,642	$	61,642	$	676,452	$	887	$	677,339
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	245	$	245	$	0	$	245
Commercial real estate - investor
Pass	$	691,430	$	338,403	$	365,545	$	459,555	$	267,413	$	995,774	$	3,118,120	$	55,353	$	3,173,473
Special mention	18,990		586		0		293		0		9,554		29,423		0		29,423
Substandard	550		0		1,723		10,298		0		31,422		43,993		0		43,993
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	710,970	$	338,989	$	367,268	$	470,146	$	267,413	$	1,036,750	$	3,191,536	$	55,353	$	3,246,889
YTD Gross chargeoffs	$	0	$	0	$	0	$	433	$	0	$	3,105	$	3,538	$	0	$	3,538
Commercial real estate - owner
Pass	$	204,292	$	209,356	$	142,925	$	145,530	$	96,069	$	278,518	$	1,076,690	$	9,388	$	1,086,078
Special mention	2,268		2,865		2,132		1,574		3,497		12,484		24,820		492		25,312
Substandard	245		3,940		2,399		10,582		3,620		5,491		26,277		0		26,277
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	206,805	$	216,161	$	147,456	$	157,686	$	103,186	$	296,493	$	1,127,787	$	9,880	$	1,137,667
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Residential real estate
Performing	$	138,000	$	198,224	$	335,419	$	362,690	$	287,576	$	488,914	$	1,810,823	$	0	$	1,810,823
Nonperforming	0		916		920		2,031		4,800		12,694		21,361		0		21,361
Total	$	138,000	$	199,140	$	336,339	$	364,721	$	292,376	$	501,608	$	1,832,184	$	0	$	1,832,184
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	119	$	48	$	167	$	0	$	167
Home equity
Performing	$	40,066	$	26,234	$	19,405	$	17,348	$	21,786	$	39,242	$	164,081	$	834,642	$	998,723
Nonperforming	341		173		335		178		70		603		1,700		4,781		6,481
Total	$	40,407	$	26,407	$	19,740	$	17,526	$	21,856	$	39,845	$	165,781	$	839,423	$	1,005,204
YTD Gross chargeoffs	$	0	$	0	$	43	$	0	$	8	$	229	$	280	$	93	$	373
Installment
Performing	$	16,087	$	10,578	$	18,085	$	25,692	$	22,197	$	22,037	$	114,676	$	70,995	$	185,671


(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Nonperforming	449		167		49		402		753		505		2,325		698		3,023
Total	$	16,536	$	10,745	$	18,134	$	26,094	$	22,950	$	22,542	$	117,001	$	71,693	$	188,694
YTD Gross chargeoffs	$	270	$	1,053	$	1,128	$	1,692	$	638	$	37	$	4,818	$	14	$	4,832
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	64,979	$	64,979
Nonperforming	0		0		0		0		0		0		0		346		346
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	65,325	$	65,325
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	2,269	$	2,269
Total Loans	$	2,778,042	$	1,835,480	$	1,750,244	$	1,690,337	$	950,384	$	2,338,978	$	11,343,465	$	2,080,605	$	13,424,070
Total YTD Gross Chargeoffs	$	1,170	$	3,038	$	11,478	$	12,116	$	2,069	$	4,138	$	34,009	$	2,666	$	36,675

Loan Delinquency, including Nonaccrual Loans

Loan delinquency, including loans classified as nonaccrual, was as follows:


	As of September 30, 2026
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total past due		Current		Total Loans		> 89 days past due and still accruing
Loans
Commercial & industrial	$	3,032	$	1,191	$	7,657	$	11,880	$	4,936,500	$	4,948,380	$	252
Lease financing	942		17		1,074		2,033		676,390		678,423		0
Construction real estate	0		0		351		351		606,345		606,696		0
Commercial real estate-investor	2,023		0		46,808		48,831		3,351,209		3,400,040		0
Commercial real estate-owner	1,118		0		4,101		5,219		1,137,309		1,142,528		0
Residential real estate	5,580		174		6,964		12,718		1,793,405		1,806,123		103
Home equity	2,464		3,234		2,579		8,277		1,097,513		1,105,790		0
Installment	772		282		550		1,604		148,881		150,485		0
Credit card	657		290		582		1,529		65,088		66,617		582
Total	$	16,588	$	5,188	$	70,666	$	92,442	$	13,812,640	$	13,905,082	$	937


	As of December 31, 2025
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total past due		Current		Total Loans		> 89 days past due and still accruing
Loans
Commercial & industrial	$	7,894	$	3,176	$	3,829	$	14,899	$	4,617,342	$	4,632,241	$	0
Lease financing	1,884		283		4,088		6,255		632,272		638,527		0
Construction real estate	0		0		1,120		1,120		676,219		677,339		0
Commercial real estate-investor	3,540		3,613		36,273		43,426		3,203,463		3,246,889		0
Commercial real estate-owner	1,081		2,985		3,436		7,502		1,130,165		1,137,667		0
Residential real estate	6,338		248		5,975		12,561		1,819,623		1,832,184		0
Home equity	2,966		1,065		1,224		5,255		999,949		1,005,204		0
Installment	935		462		484		1,881		186,813		188,694		65
Credit card	860		272		347		1,479		63,846		65,325		346
Total	$	25,498	$	12,104	$	56,776	$	94,378	$	13,329,692	$	13,424,070	$	411

Schedule of Amortized Cost Basis and Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty

The following tables provide the end of period amortized cost basis of FDMs end that were granted modifications during the respective periods:


	Three months ended September 30, 2026
(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





Residential real estate	$	0	$	482	$	0	$	0	$	0	$	482	0.0	%
Home equity	0		408		0		0		0		408		0.0	%

Total	$	0	$	890	$	0	$	0	$	0	$	890	0.0	%


	Three months ended September 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	$	9,974	$	0	$	0	$	0	$	9,974	0.3	%




Residential real estate	0		827		279		0		0		1,106		0.1	%
Home equity	0		17		0		0		0		17		0.0	%

Total	$	0	$	10,818	$	279	$	0	$	0	$	11,097	0.1	%


	Nine months ended September 30, 2026
(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	$	6,048	$	735	$	0	$	0	$	6,783	0.1	%

Construction real estate	0		0		461		0		0		461		0.1	%
Commercial real estate-investor	0		8,716		0		0		0		8,716		0.3	%
Commercial real estate-owner	0		0		550		0		0		550		0.0	%
Residential real estate	0		2,487		0		0		0		2,487		0.1	%
Home equity	0		2,582		0		0		0		2,582		0.2	%

Total	$	0	$	19,833	$	1,746	$	0	$	0	$	21,579	0.2	%


	Nine months ended September 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	$	11,674	$	190	$	0	$	0	$	11,864	0.3	%


Commercial real estate-investor	0		474		0		0		0		474		0.0	%

Residential real estate	0		2,971		509		0		0		3,480		0.2	%
Home equity	0		861		0		0		0		861		0.1	%

Total	$	0	$	15,980	$	699	$	0	$	0	$	16,679	0.1	%

The following table provides the financial effect of FDMs granted during the respective periods:


	Three months ended September 30, 2026
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension





Residential real estate	$	0	0.0	%	N/A
Home equity	0		0.0	%	N/A

Total	$	0	0.0	%	N/A

	Three months ended September 30, 2025
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.0	%	N/A




Residential real estate	0		0.0	%	10.6 years
Home equity	0		0.0	%	N/A

Total	$	0	0.0	%	10.6 years



	Nine months ended September 30, 2026
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.0	%	1.2 years

Construction real estate	0		0.0	%	1.2 years

Commercial real estate-owner	0		0.0	%	0.5 years



Total	$	0	0.0	%	1.0 year

	Nine months ended September 30, 2025
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.0	%	0.5 years




Residential real estate	0		0.0	%	7.4 years


Total	$	0	0.0	%	5.5 years

Financing Receivable, Modified, Past Due

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 September 30, 2026 and 2025.


	Twelve months ended September 30, 2026
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total
Commercial & industrial	$	6,783	$	0	$	0	$	1,322	$	8,105

Construction real estate	0		0		0		351		351
Commercial real estate-investor	9,266		0		0		0		9,266

Residential real estate	2,443		0		355		521		3,319
Home equity	2,778		35		195		46		3,054

Total	$	21,270	$	35	$	550	$	2,240	$	24,095


	Twelve months ended September 30, 2025
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total
Commercial & industrial	$	12,227	$	0	$	0	$	367	$	12,594


Commercial real estate-investor	474		0		0		0		474

Residential real estate	3,037		97		337		350		3,821
Home equity	955		17		0		98		1,070

Total	$	16,693	$	114	$	337	$	815	$	17,959

Financing Receivable, Nonaccrual

The following table provides information on nonaccrual loans and leases:


	September 30, 2026						December 31, 2025
(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	$	10,688	$	10,439	$	21,127	$	17,329	$	10,132	$	27,461
Lease financing	699		760		1,459		4,770		890		5,660
Construction real estate	0		351		351		0		1,120		1,120
Commercial real estate	28,468		25,402		53,870		15,977		29,613		45,590
Residential real estate	626		17,732		18,358		0		18,302		18,302
Home equity	0		4,093		4,093		0		2,927		2,927
Installment	0		952		952		0		748		748
Total nonaccrual loans	$	40,481	$	59,729	$	100,210	$	38,076	$	63,732	$	101,808

Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by class of loan.


	September 30, 2026
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	10,903	$	0	$	1,758	$	0	$	0	$	8,466	$	21,127
Lease financing	0		0		1,459		0		0		0		1,459
Construction real estate	0		351		0		0		0		0		351
Commercial real estate-investor	0		49,282		0		0		15		0		49,297
Commercial real estate-owner	0		4,545		0		0		28		0		4,573
Residential real estate	0		0		0		0		18,358		0		18,358
Home equity	0		0		0		0		4,093		0		4,093
Installment	0		0		0		0		0		952		952
Total	$	10,903	$	54,178	$	3,217	$	0	$	22,494	$	9,418	$	100,210


	December 31, 2025
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	18,822	$	0	$	2,392	$	0	$	0	$	6,247	$	27,461
Lease financing	0		0		5,660		0		0		0		5,660
Construction real estate	0		1,120		0		0		0		0		1,120
Commercial real estate-investor	0		36,862		0		0		46		0		36,908
Commercial real estate-owner	0		8,682		0		0		0		0		8,682
Residential real estate	0		0		0		0		18,302		0		18,302
Home equity	0		0		0		0		2,927		0		2,927
Installment	0		0		0		0		0		748		748
Total	$	18,822	$	46,664	$	8,052	$	0	$	21,275	$	6,995	$	101,808

Components of lease investments

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)	September 30, 2026		December 31, 2025
Direct financing and sales-type leases
Lease receivables	$	673,606	$	627,742
Unguaranteed residual values	4,817		10,785
Total net investment in direct financing and sales-type leases	$	678,423	$	638,527

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

The remaining maturities of lease receivables were as follows:


(Dollars in thousands)	Direct financing and Sales-type
Remainder of 2026	$	64,493
2027	241,536
2028	182,679
2029	134,418
2030	82,089
Thereafter	53,732
Total lease payments	758,947
Less: unearned income	(85,341)
Net lease receivables	$	673,606

Changes in Other Real Estate Owned

Changes in OREO were as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
(Dollars in thousands)	2026		2025		2026		2025
Balance at beginning of period	$	174	$	204	$	184	$	64
Additions
Commercial real estate	106		0		106		0
Residential real estate	0		0		54		149
Total additions	106		0		160		149
Disposals
Commercial real estate	0		0		0		0
Residential real estate	(120)		(55)		(184)		(55)
Total disposals	(120)		(55)		(184)		(55)
Valuation adjustment
Commercial real estate	0		0		0		0
Residential real estate	0		(38)		0		(47)
Total valuation adjustment	0		(38)		0		(47)
Balance at end of period	$	160	$	111	$	160	$	111

Financing Receivable Purchased With Credit Deterioration

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)	2026		2025
Purchase price of loans at acquisition	$	3,081	$	27,402
Allowance for credit losses at acquisition	785		3,050
Non-credit discount at acquisition	98		1,505
Par value of acquired loans at acquisition	$	3,964	$	31,957