10-Q

Table of Content

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C.  20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended                                           March 31, 2023                                                   

OR

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to ____________________

Commission file number 001-34762

FIRST FINANCIAL BANCORP /OH/

(Exact name of registrant as specified in its charter)

Ohio			31-1042001
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
255 East Fifth Street, Suite 800	Cincinnati,	Ohio	45202
(Address of principal executive offices)			(Zip Code)

Registrant's telephone number, including area code:  (877) 322-9530

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, No par value	FFBC	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes   ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of Exchange Act).

Yes  ☐ No   ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. The registrant has one class of common stock (no par value) with 95,154,979 shares outstanding at May 4, 2023.

Table of Content

FIRST FINANCIAL BANCORP.

INDEX

	Page No.
Part I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Consolidated Balance Sheets - March 31, 2023 (unaudited) and December 31, 2022	1
Consolidated Statements of Income - Three Months Ended March 31, 2023 and 2022 (unaudited)	2
Consolidated Statements of Comprehensive Income (Loss) - Three Months Ended March 31, 2023 and 2022 (unaudited)	3
Consolidated Statements of Changes in Shareholders’ Equity - Three Months Ended March 31, 2023 and 2022 (unaudited)	4
Consolidated Statements of Cash Flows - Three Months Ended March 31, 2023 and 2022 (unaudited)	5
Notes to Consolidated Financial Statements (unaudited)	7
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3 - Quantitative and Qualitative Disclosures about Market Risk	62
Item 4 - Controls and Procedures	62
Part II - OTHER INFORMATION
Item 1 - Legal Proceedings	63
Item 1A - Risk Factors	63
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 6 - Exhibits	64
Signatures	65

Table of Content

Glossary of Abbreviations and Acronyms

First Financial has identified the following list of abbreviations and acronyms that are used in the Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations.

ABL	Asset backed lending	FRB	Federal Reserve Bank
ACL	Allowance for credit losses	FTE	Fully tax equivalent
AFS	Available-for-sale	GAAP	U.S. Generally Accepted Accounting Principles
Allowance	Collectively or individually, Allowance for credit losses	HTC	Historic tax credit
AOCI	Accumulated other comprehensive income	HTM	Held-to-maturity
ASC	Accounting standards codification	Insignificant	Less than $0.1 million
ASU	Accounting standards update	IRLC	Interest rate lock commitment
Bank	First Financial Bank	LGD	Loss given default
Basel III	Basel Committee regulatory capital reforms, Third Basel Accord	LIHTC	Low income housing tax credit
BGF or Bannockburn	Bannockburn Global Forex, LLC	MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations
Bp/bps	Basis point(s)	MSFG	MainSource Financial Group, Inc.
BOLI	Bank owned life insurance	N/A	Not applicable
CARES Act	Coronavirus Aid, Relief, and Economic Security Act	NII	Net interest income
CDs	Certificates of deposit	NMTC	New market tax credit
C&I	Commercial & industrial	OREO	Other real estate owned
CRE	Commercial real estate	PCA	Prompt corrective action
Company	First Financial Bancorp.	PCD	Purchased credit deteriorated
DDA	Demand deposit account	PPP	Paycheck Protection Program
Dodd-Frank	Dodd–Frank Wall Street Reform and Consumer Protection Act	R&S	Reasonable and Supportable
ERM	Enterprise risk management	ROU	Right-of-use
EVE	Economic value of equity	SAB	Staff Accounting Bulletin
Fair Value Topic	FASB ASC Topic 820, Fair Value Measurement	SEC	U.S. Securities and Exchange Commission
FASB	Financial Accounting Standards Board	SFG or Summit	Summit Funding Group, Inc.
FDIC	Federal Deposit Insurance Corporation	SOFR	Secured Overnight Financing Rate
FDM	Financial difficulty modification	Topic 842	FASB ASC Topic 842, Leasing
FHLB	Federal Home Loan Bank	TDR	Troubled debt restructuring
First Financial	First Financial Bancorp.	USD	United States dollars
Form 10-K	First Financial Bancorp. Annual Report on Form 10-K

Table of Content

PART I - FINANCIAL INFORMATION

ITEM I - FINANCIAL STATEMENTS

FIRST FINANCIAL BANCORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	March 31, 2023		December 31, 2022
	(Unaudited)
Assets
Cash and due from banks	$	199,835	$	207,501
Interest-bearing deposits with other banks	305,465		388,182
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	3,384,949		3,409,648
Investment securities held-to-maturity (fair value $75,762 at March 31, 2023 and $76,485 at December 31, 2022)	83,070		84,021
Other investments	143,606		143,160
Loans held for sale, at fair value	9,280		7,918
Loans and leases
Commercial & industrial	3,449,289		3,410,272
Lease financing	273,898		236,124
Construction real estate	525,906		512,050
Commercial real estate	4,056,627		4,052,759
Residential real estate	1,145,069		1,092,265
Home equity	724,672		733,791
Installment	204,372		209,895
Credit card	53,552		51,815
Total loans and leases	10,433,385		10,298,971
Less: Allowance for credit losses	(141,591)		(132,977)
Net loans and leases	10,291,794		10,165,994
Premises and equipment	188,959		189,080
Operating leases	153,986		91,738
Goodwill	1,005,738		1,001,507
Other intangibles	91,169		93,919
Accrued interest and other assets	1,076,033		1,220,648
Total assets	$	16,933,884	$	17,003,316
Liabilities
Deposits
Interest-bearing demand	$	2,761,811	$	3,037,153
Savings	3,746,403		3,828,139
Time	2,336,368		1,700,705
Total interest-bearing deposits	8,844,582		8,565,997
Noninterest-bearing	3,830,102		4,135,180
Total deposits	12,674,684		12,701,177
FHLB short-term borrowings	1,089,400		1,130,000
Other short-term borrowings	128,160		157,156
Total short-term borrowings	1,217,560		1,287,156
Long-term debt	342,647		346,672
Total borrowed funds	1,560,207		1,633,828
Accrued interest and other liabilities	577,497		626,938
Total liabilities	14,812,388		14,961,943
Shareholders' equity
Common stock - no par value
Authorized - 160,000,000 shares; Issued - 104,281,794 shares at both March 31, 2023 and December 31, 2022	1,629,428		1,634,605
Retained earnings	1,016,893		968,237
Accumulated other comprehensive income (loss)	(328,059)		(358,663)
Treasury stock, at cost, 9,091,388 shares at March 31, 2023 and 9,390,695 shares at December 31, 2022	(196,766)		(202,806)
Total shareholders' equity	2,121,496		2,041,373
Total liabilities and shareholders' equity	$	16,933,884	$	17,003,316

See Notes to Consolidated Financial Statements.

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FIRST FINANCIAL BANCORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three months ended
	March 31,
	2023		2022
Interest income
Loans and leases, including fees	$	169,706	$	87,182
Investment securities
Taxable	31,867		22,096
Tax-exempt	3,464		4,431
Total interest on investment securities	35,331		26,527
Other earning assets	3,544		120
Total interest income	208,581		113,829
Interest expense
Deposits	31,456		2,623
Short-term borrowings	12,950		317
Long-term borrowings	4,857		4,544
Total interest expense	49,263		7,484
Net interest income	159,318		106,345
Provision for credit losses - loans and leases	8,644		(5,589)
Provision for credit losses - unfunded commitments	1,835		(226)
Net interest income after provision for credit losses	148,839		112,160
Noninterest income
Service charges on deposit accounts	6,514		7,729
Trust and wealth management fees	6,334		6,060
Bankcard income	3,592		3,337
Client derivative fees	1,005		803
Foreign exchange income	16,898		10,151
Leasing business income	13,664		6,076
Net gain from sales of loans	2,335		3,872
Net gain (loss) on sales of investment securities	(519)		3
Net gain (loss) on equity securities	640		(199)
Other	5,080		3,462
Total noninterest income	55,543		41,294
Noninterest expenses
Salaries and employee benefits	72,254		63,947
Net occupancy	5,685		5,746
Furniture and equipment	3,317		3,567
Data processing	9,020		8,264
Marketing	2,160		1,700
Communication	634		666
Professional services	1,946		2,159
State intangible tax	985		1,131
FDIC assessments	2,826		1,459
Intangible assets amortization	2,600		2,914
Leasing business expense	7,938		3,869
Other	7,328		7,383
Total noninterest expenses	116,693		102,805
Income before income taxes	87,689		50,649
Income tax (benefit) expense	17,286		9,348
Net income	$	70,403	$	41,301
Net earnings per common share - basic	$	0.75	$	0.44
Net earnings per common share - diluted	$	0.74	$	0.44
Average common shares outstanding - basic	93,732,532		93,383,932
Average common shares outstanding - diluted	94,960,158		94,263,925

See Notes to Consolidated Financial Statements.

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FIRST FINANCIAL BANCORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in thousands)
(Unaudited)
	Three months ended
	March 31,
	2023		2022
Net income	$	70,403	$	41,301
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on debt securities arising during the period	30,485		(142,401)
Change in retirement obligation	115		346
Unrealized gain (loss) on foreign currency exchange	4		11
Other comprehensive income (loss)	30,604		(142,044)
Comprehensive income (loss)	$	101,007	$	(100,743)
See Notes to Consolidated Financial Statements.

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FIRST FINANCIAL BANCORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

Year-to-date

(Dollars in thousands except per share data)

(Unaudited)

	Common Stock			Retained		Accumulated other comprehensive		Treasury stock
	Shares	Amount		Earnings		income (loss)		Shares	Amount		Total
Balance at January 1, 2022	104,281,794	$	1,640,358	$	837,473	$	(433)	(10,132,554)	$	(218,456)	$	2,258,942
Net income				41,301							41,301
Other comprehensive income (loss)						(142,044)					(142,044)
Cash dividends declared:
Common stock at $0.23 per share				(21,596)							(21,596)
Exercise of stock options, net of shares purchased		(160)						15,660	337		177
Restricted stock awards, net of forfeitures		(8,802)						286,596	5,960		(2,842)
Share-based compensation expense		3,507									3,507
Balance at March 31, 2022	104,281,794	$	1,634,903	$	857,178	$	(142,477)	(9,830,298)	$	(212,159)	$	2,137,445
Balance at January 1, 2023	104,281,794	$	1,634,605	$	968,237	$	(358,663)	(9,390,695)	$	(202,806)	$	2,041,373
Net income				70,403							70,403
Other comprehensive income (loss)						30,604					30,604
Cash dividends declared:
Common stock at $0.23 per share				(21,747)							(21,747)
Exercise of stock options, net of shares purchased		(41)						3,468	75		34
Restricted stock awards, net of forfeitures		(9,752)						295,839	5,965		(3,787)
Share-based compensation expense		4,616									4,616
Balance at March 31, 2023	104,281,794	$	1,629,428	$	1,016,893	$	(328,059)	(9,091,388)	$	(196,766)	$	2,121,496

See Notes to Consolidated Financial Statements.

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FIRST FINANCIAL BANCORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Three months ended
	March 31,
	2023		2022
Operating activities
Net income	$	70,403	$	41,301
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recapture of) credit losses	10,479		(5,815)
Depreciation and amortization	7,520		8,107
Stock-based compensation expense	4,616		3,507
Pension expense (income)	875		625
Net amortization (accretion) on investment securities	1,894		4,092
Net (gain) loss on sales of investment securities	519		(3)
Net (gain) loss from equity securities	(640)		199
Originations of loans held for sale	(42,174)		(98,958)
Net gains from sales of loans held for sale	(2,335)		(3,872)
Proceeds from sales of loans held for sale	41,926		113,939
Deferred income taxes	(8,844)		334
Amortization of operating leases	1,914		1,899
Payments for operating leases	(1,970)		(1,942)
Decrease (increase) cash surrender value of life insurance	(766)		(652)
Decrease (increase) in interest receivable	(1,866)		1,846
(Decrease) increase in interest payable	18,746		164
Decrease (increase) in other assets	145,295		52,590
(Decrease) increase in other liabilities	(73,386)		26,454
Net cash provided by (used in) operating activities	172,206		143,815
Investing activities
Proceeds from sales of securities available-for-sale	0		5,003
Proceeds from calls, paydowns and maturities of securities available-for-sale	89,066		232,267
Purchases of securities available-for-sale	(27,240)		(173,954)
Proceeds from calls, paydowns and maturities of securities held-to-maturity	1,009		5,906
Purchases of other investment securities	(306)		(11,799)
Proceeds from calls, paydowns and maturities of other securities	0		8
Net decrease (increase) in interest-bearing deposits with other banks	82,717		(12,336)
Net decrease (increase) in loans and leases	(133,223)		49,580
Proceeds from disposal of other real estate owned	0		98
Purchases of premises and equipment	(4,493)		(3,181)
Net change in operating leases	(62,248)		(12,085)
Net cash (paid for) acquired from acquisitions	(3,400)		0
Life insurance death benefits	627		3,316
Net cash provided by (used in) investing activities	(57,491)		82,823
Financing activities
Net (decrease) increase in total deposits	(26,493)		(53,046)
Net (decrease) increase in short-term borrowings	(69,596)		(111,203)
Payments on long-term debt	(4,215)		(30,183)
Cash dividends paid on common stock	(22,111)		(21,986)
Proceeds from exercise of stock options	34		177
Net cash provided by (used in) financing activities	(122,381)		(216,241)
Cash and due from banks
Change in cash and due from banks	(7,666)		10,397
Cash and due from banks at beginning of period	207,501		220,031
Cash and due from banks at end of period	$	199,835	$	230,428
	(continued on next page)

See Notes to Consolidated Financial Statements.

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FIRST FINANCIAL BANCORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Dollars in thousands)

(Unaudited)

	Three months ended
	March 31,
	2023		2022
Supplemental disclosures
Interest paid	$	30,518	$	7,321
Income taxes paid, net of refunds	$	324	$	170
Supplemental schedule for investing activities
Business combinations
Assets acquired, net of purchase consideration	$	(3,290)	$	1,028
Liabilities assumed	941		238
Goodwill	$	4,231	$	(790)

See Notes to Consolidated Financial Statements.

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FIRST FINANCIAL BANCORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2023

(Unaudited)

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation. The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly-owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation.  Certain reclassifications of prior periods' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings.

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and accompanying notes necessary to constitute a complete set of financial statements required by GAAP and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.  Management believes these unaudited consolidated financial statements reflect all adjustments of a normal recurring nature which are necessary for a fair presentation of the results for the interim periods presented.  The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.  The Consolidated Balance Sheet as of December 31, 2022 has been derived from the audited financial statements in the Company’s 2022 Form 10-K.

Use of estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes.  Actual realized amounts could differ materially from these estimates.

NOTE 2:  ACCOUNTING STANDARDS RECENTLY ADOPTED OR ISSUED

Standards Adopted in 2023

In March, 2022, the FASB issued ASU 2022-02 - Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This standard eliminates the accounting guidance on TDRs for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for any entities that have adopted ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The adoption of this standard resulted in amended disclosures in the Company's Consolidated Financial Statements, but did not materially impact the Company's results of operations.

Standards Adopted in 2022

During the first quarter of 2022, the SEC issued SAB No. 121. This bulletin adds interpretive guidance on the accounting and disclosure of obligations to safeguard crypto assets held for platform users. This guidance was applicable no later than the financial statements covering the first interim or annual period ending after June 15, 2022. Management reviewed its business activities and determined SAB 121 was not impactful to the Company’s Consolidated Financial Statements as the Company did not safeguard crypto assets at the time of adoption or as of March 31, 2023.

Standards Issued But Not Yet Adopted

In March, 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, that is intended to improve the accounting and disclosures for investments in tax credit structures. The ASU is a ratification of the FASB’s EITF consensus that was issued in December, 2022. The ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.

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The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and early adoption is permitted. First Financial is currently evaluating the impact of this update its Consolidated Financial Statements.

NOTE 3:  INVESTMENTS

For the three months ended March 31, 2023, there were no sales of AFS securities. For the three months ended March 31, 2022, there were $5.0 million of sales of AFS securities with insignificant gross realized gains and gross realized losses.

The following is a summary of HTM and AFS investment securities as of March 31, 2023:

	Held-to-maturity								Available-for-sale
(Dollars in thousands)	Amortized cost		Unrecognized gain		Unrecognized loss		Fair value		Amortized cost		Unrealized gain		Unrealized loss		Fair value
U.S. Treasuries	$	0	$	0	$	0	$	0	$	37,319	$	0	$	(3,898)	$	33,421
Securities of U.S. government agencies and corporations	0		0		0		0		80,728		0		(12,963)		67,765
Mortgage-backed securities - residential	0		0		0		0		734,761		624		(86,142)		649,243
Mortgage-backed securities - commercial	34,659		0		(3,981)		30,678		669,015		0		(44,121)		624,894
Collateralized mortgage obligations	9,030		0		(684)		8,346		524,394		121		(59,400)		465,115
Obligations of state and other political subdivisions	8,131		172		(186)		8,117		828,948		1,355		(111,128)		719,175
Asset-backed securities	0		0		0		0		746,463		179		(51,567)		695,075
Other securities	31,250		0		(2,629)		28,621		142,030		0		(11,769)		130,261
Total	$	83,070	$	172	$	(7,480)	$	75,762	$	3,763,658	$	2,279	$	(380,988)	$	3,384,949

The following is a summary of HTM and AFS investment securities as of December 31, 2022:

	Held-to-maturity								Available-for-sale
(Dollars in thousands)	Amortized cost		Unrecognized gain		Unrecognized loss		Fair value		Amortized cost		Unrealized gain		Unrealized loss		Fair value
U.S. Treasuries	$	0	$	0	$	0	$	0	$	37,312	$	0	$	(4,616)	$	32,696
Securities of U.S. government agencies and corporations	0		0		0		0		80,382		0		(13,914)		66,468
Mortgage-backed securities - residential	0		0		0		0		747,478		47		(97,462)		650,063
Mortgage-backed securities - commercial	35,363		0		(4,114)		31,249		676,934		2		(47,374)		629,562
Collateralized mortgage obligations	9,280		0		(827)		8,453		538,970		181		(61,439)		477,712
Obligations of state and other political subdivisions	8,128		105		(201)		8,032		832,066		565		(124,168)		708,463
Asset-backed securities	0		0		0		0		772,261		39		(60,975)		711,325
Other securities	31,250		0		(2,499)		28,751		142,015		0		(8,656)		133,359
Total	$	84,021	$	105	$	(7,641)	$	76,485	$	3,827,418	$	834	$	(418,604)	$	3,409,648

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The following table provides a summary of investment securities by contractual maturity as of March 31, 2023, except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments.

	Held-to-maturity				Available-for-sale
(Dollars in thousands)	Amortized cost		Fair value		Amortized cost		Fair value
By Contractual Maturity:
Due in one year or less	$	0	$	0	$	8,119	$	7,981
Due after one year through five years	2,607		2,720		99,178		93,713
Due after five years through ten years	34,951		32,381		293,272		258,231
Due after ten years	1,823		1,637		688,456		590,697
Mortgage-backed securities - residential	0		0		734,761		649,243
Mortgage-backed securities - commercial	34,659		30,678		669,015		624,894
Collateralized mortgage obligations	9,030		8,346		524,394		465,115
Asset-backed securities	0		0		746,463		695,075
Total	$	83,070	$	75,762	$	3,763,658	$	3,384,949

Unrealized gains and losses on debt securities available for sale are generally due to fluctuations in current market yields relative to the yields of the securities at their amortized cost. All AFS securities with unrealized losses are reviewed quarterly to determine if any impairment exists, requiring a write-down to fair value. For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale in an unrealized loss position that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis.

First Financial does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities prior to maturity or recovery of the recorded value. Additionally, based on the Company's credit assessment of AFS securities in an unrealized loss position, the Company recorded no reserves for the periods ended March 31, 2023 or December 31, 2022.

As of March 31, 2023, the Company's investment securities portfolio consisted of 1,072 securities, of which 856 were in an unrealized loss position. As of December 31, 2022, the Company's investment securities portfolio consisted of 1,251 securities, of which 891 were in an unrealized loss position.

Primarily all of First Financial’s HTM debt securities are issued by U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. The remainder of the Company's HTM securities are non-agency collateralized mortgage obligations and obligations of state and other political subdivisions which currently carry ratings no lower than A+. There were no HTM securities on nonaccrual status or past due at March 31, 2023 or December 31, 2022.

Management measures expected credit losses on HTM debt securities on a collective basis by security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company did not record an ACL for these securities as of March 31, 2023 or December 31, 2022.

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The following tables provide the fair value and gross unrealized losses of AFS investment securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

	March 31, 2023
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	2,397	$	(34)	$	31,024	$	(3,864)	$	33,421	$	(3,898)
Securities of U.S. Government agencies and corporations	0		0		67,765		(12,963)		67,765		(12,963)
Mortgage-backed securities - residential	119,487		(3,998)		490,241		(82,144)		609,728		(86,142)
Mortgage-backed securities - commercial	84,064		(2,787)		540,830		(41,334)		624,894		(44,121)
Collateralized mortgage obligations	89,481		(3,484)		366,249		(55,916)		455,730		(59,400)
Obligations of state and other political subdivisions	65,220		(3,941)		537,923		(107,187)		603,143		(111,128)
Asset-backed securities	100,004		(2,838)		573,501		(48,729)		673,505		(51,567)
Other securities	48,558		(2,442)		81,569		(9,327)		130,127		(11,769)
Total	$	509,211	$	(19,524)	$	2,689,102	$	(361,464)	$	3,198,313	$	(380,988)

	December 31, 2022
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	2,383	$	(46)	$	30,313	$	(4,570)	$	32,696	$	(4,616)
Securities of U.S. Government agencies and corporations	0		0		66,468		(13,914)		66,468		(13,914)
Mortgage-backed securities - residential	195,972		(10,413)		443,415		(87,049)		639,387		(97,462)
Mortgage-backed securities - commercial	440,207		(18,823)		175,530		(28,551)		615,737		(47,374)
Collateralized mortgage obligations	199,138		(12,453)		269,242		(48,986)		468,380		(61,439)
Obligations of state and other political subdivisions	295,913		(31,196)		368,673		(92,972)		664,586		(124,168)
Asset-backed securities	250,946		(9,410)		422,090		(51,565)		673,036		(60,975)
Other securities	118,262		(6,865)		9,959		(1,791)		128,221		(8,656)
Total	$	1,502,821	$	(89,206)	$	1,785,690	$	(329,398)	$	3,288,511	$	(418,604)

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The following tables provide the fair value and gross unrealized losses of HTM investment securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

	March 31, 2023
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	0	$	0	$	0	$	0	$	0	$	0
Securities of U.S. Government agencies and corporations	0		0		0		0		0		0
Mortgage-backed securities - residential	0		0		0		0		0		0
Mortgage-backed securities - commercial	0		0		30,678		(3,981)		30,678		(3,981)
Collateralized mortgage obligations	0		0		8,346		(684)		8,346		(684)
Obligations of state and other political subdivisions	0		0		1,637		(186)		1,637		(186)
Asset-backed securities	0		0		0		0		0		0
Other securities	0		0		28,621		(2,629)		28,621		(2,629)
Total	$	0	$	0	$	69,282	$	(7,480)	$	69,282	$	(7,480)

	December 31, 2022
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	0	$	0	$	0	$	0	$	0	$	0
Securities of U.S. Government agencies and corporations	0		0		0		0		0		0
Mortgage-backed securities - residential	0		0		0		0		0		0
Mortgage-backed securities - commercial	17,656		(2,197)		13,593		(1,917)		31,249		(4,114)
Collateralized mortgage obligations	6,317		(606)		2,136		(221)		8,453		(827)
Obligations of state and other political subdivisions	5,160		(201)		0		0		5,160		(201)
Asset-backed securities	0		0		0		0		0		0
Other securities	7,082		(418)		21,670		(2,081)		28,752		(2,499)
Total	$	36,215	$	(3,422)	$	37,399	$	(4,219)	$	73,614	$	(7,641)

For further detail on the fair value of investment securities, see Note 17 – Fair Value Disclosures.

NOTE 4:  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 lending platforms that extend beyond the geographic banking center footprint to provide financing to franchise owners and clients within the financial services industry as well as equipment lease financing to commercial businesses.

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.

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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. In 2022 and all years prior that are presented below, consumer loans that had been modified in a TDR were classified as nonperforming.

The following table sets forth the Company's loan portfolio at March 31, 2023 by risk attribute and origination date as well as current period gross chargeoffs:

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	165,984	$	869,449	$	538,860	$	336,469	$	202,246	$	290,318	$	2,403,326	$	928,212	$	3,331,538
Special mention	198		13,090		4,198		3,901		10,194		2,217		33,798		13,855		47,653
Substandard	0		2,812		15,308		10,008		6,653		19,550		54,331		15,767		70,098
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	166,182	$	885,351	$	558,366	$	350,378	$	219,093	$	312,085	$	2,491,455	$	957,834	$	3,449,289
YTD Gross chargeoffs	$	0	$	22	$	6	$	0	$	19	$	683	$	730	$	0	$	730
Lease financing
Pass	$	29,221	$	187,765	$	23,349	$	11,891	$	10,465	$	6,925	$	269,616	$	0	$	269,616
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		4,107		0		0		158		17		4,282		0		4,282
Total	$	29,221	$	191,872	$	23,349	$	11,891	$	10,623	$	6,942	$	273,898	$	0	$	273,898
YTD Gross chargeoffs	$	0	$	0	$	13	$	0	$	0	$	0	$	13	$	0	$	13
Construction real estate
Pass	$	8,249	$	185,065	$	209,847	$	75,338	$	6,177	$	6,869	$	491,545	$	19,966	$	511,511
Special mention	0		0		14,395		0		0		0		14,395		0		14,395
Substandard	0		0		0		0		0		0		0		0		0
Total	$	8,249	$	185,065	$	224,242	$	75,338	$	6,177	$	6,869	$	505,940	$	19,966	$	525,906
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - investor
Pass	$	66,536	$	665,650	$	454,273	$	300,956	$	689,958	$	742,866	$	2,920,239	$	28,390	$	2,948,629
Special mention	0		0		13,060		17,134		9,229		51,437		90,860		295		91,155
Substandard	0		0		0		13,874		3,992		44,795		62,661		0		62,661
Doubtful	0		0		0		0		0		0		0		0		0

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(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Total	$	66,536	$	665,650	$	467,333	$	331,964	$	703,179	$	839,098	$	3,073,760	$	28,685	$	3,102,445
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - owner
Pass	$	27,575	$	167,222	$	148,857	$	159,185	$	99,257	$	308,493	$	910,589	$	9,974	$	920,563
Special mention	0		578		11		1,136		870		14,113		16,708		0		16,708
Substandard	0		0		456		842		5,054		9,909		16,261		650		16,911
Total	$	27,575	$	167,800	$	149,324	$	161,163	$	105,181	$	332,515	$	943,558	$	10,624	$	954,182
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	66	$	66	$	0	$	66
Residential real estate
Performing	$	65,711	$	336,483	$	272,688	$	201,737	$	108,797	$	145,008	$	1,130,424	$	0	$	1,130,424
Nonperforming	0		499		1,277		2,135		2,743		7,991		14,645		0		14,645
Total	$	65,711	$	336,982	$	273,965	$	203,872	$	111,540	$	152,999	$	1,145,069	$	0	$	1,145,069
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Home equity
Performing	$	4,421	$	25,913	$	32,296	$	37,089	$	11,365	$	30,299	$	141,383	$	578,148	$	719,531
Nonperforming	0		5		128		197		0		503		833		4,308		5,141
Total	$	4,421	$	25,918	$	32,424	$	37,286	$	11,365	$	30,802	$	142,216	$	582,456	$	724,672
YTD Gross chargeoffs	$	0	$	0	$	7	$	0	$	0	$	84	$	91	$	0	$	91
Installment
Performing	$	3,282	$	94,791	$	34,611	$	6,118	$	3,141	$	5,319	$	147,262	$	55,284	$	202,546
Nonperforming	1		666		590		30		71		32		1,390		436		1,826
Total	$	3,283	$	95,457	$	35,201	$	6,148	$	3,212	$	5,351	$	148,652	$	55,720	$	204,372
YTD Gross chargeoffs	$	0	$	710	$	769	$	33	$	0	$	12	$	1,524	$	0	$	1,524
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	53,393	$	53,393
Nonperforming	0		0		0		0		0		0		0		159		159
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	53,552	$	53,552
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	217	$	217

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The following table sets forth the Company's loan portfolio at December 31, 2022 by risk attribute and origination date:

(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	879,836	$	561,890	$	348,123	$	209,758	$	112,282	$	206,656	$	2,318,545	$	971,080	$	3,289,625
Special mention	2,740		13,821		4,125		14,047		8,523		5,544		48,800		18,055		66,855
Substandard	2,335		5,176		11,886		8,016		3,331		13,812		44,556		9,236		53,792
Total	$	884,911	$	580,887	$	364,134	$	231,821	$	124,136	$	226,012	$	2,411,901	$	998,371	$	3,410,272
Lease financing
Pass	$	167,035	$	25,638	$	13,705	$	12,797	$	9,402	$	2,930	$	231,507	$	0	$	231,507
Special mention	0		0		70		0		0		0		70		0		70
Substandard	4,363		0		0		164		11		9		4,547		0		4,547
Total	$	171,398	$	25,638	$	13,775	$	12,961	$	9,413	$	2,939	$	236,124	$	0	$	236,124
Construction real estate
Pass	$	89,116	$	276,639	$	96,823	$	4,902	$	390	$	353	$	468,223	$	23,266	$	491,489
Special mention	0		14,395		0		0		6,166		0		20,561		0		20,561
Substandard	0		0		0		0		0		0		0		0		0
Total	$	89,116	$	291,034	$	96,823	$	4,902	$	6,556	$	353	$	488,784	$	23,266	$	512,050
Commercial real estate - investor
Pass	$	643,174	$	470,085	$	301,510	$	719,699	$	300,772	$	508,639	$	2,943,879	$	26,153	$	2,970,032
Special mention	0		13,090		23,111		9,297		26,079		13,804		85,381		861		86,242
Substandard	0		6,950		6		4,025		17,178		9,631		37,790		0		37,790
Total	$	643,174	$	490,125	$	324,627	$	733,021	$	344,029	$	532,074	$	3,067,050	$	27,014	$	3,094,064
Commercial real estate - owner
Pass	$	165,411	$	155,041	$	170,587	$	101,137	$	112,063	$	211,377	$	915,616	$	11,125	$	926,741
Special mention	0		0		0		1,479		0		14,040		15,519		0		15,519
Substandard	0		525		844		5,114		3,501		6,451		16,435		0		16,435
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	165,411	$	155,566	$	171,431	$	107,730	$	115,564	$	231,868	$	947,570	$	11,125	$	958,695
Residential real estate
Performing	$	320,676	$	274,816	$	205,948	$	110,745	$	51,583	$	114,642	$	1,078,410	$	0	$	1,078,410
Nonperforming	414		1,615		1,286		2,554		1,755		6,231		13,855		0		13,855
Total	$	321,090	$	276,431	$	207,234	$	113,299	$	53,338	$	120,873	$	1,092,265	$	0	$	1,092,265
Home equity
Performing	$	26,411	$	33,414	$	38,226	$	11,733	$	8,051	$	24,985	$	142,820	$	585,712	$	728,532
Nonperforming	5		136		298		78		104		430		1,051		4,208		5,259
Total	$	26,416	$	33,550	$	38,524	$	11,811	$	8,155	$	25,415	$	143,871	$	589,920	$	733,791
Installment
Performing	$	100,256	$	38,694	$	7,244	$	3,915	$	2,861	$	3,242	$	156,212	$	51,854	$	208,066
Nonperforming	650		794		18		6		20		42		1,530		299		1,829
Total	$	100,906	$	39,488	$	7,262	$	3,921	$	2,881	$	3,284	$	157,742	$	52,153	$	209,895
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,287	$	51,287
Nonperforming	0		0		0		0		0		0		0		528		528
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,815	$	51,815
Grand Total	$	2,402,422	$	1,892,719	$	1,223,810	$	1,219,466	$	664,072	$	1,142,818	$	8,545,307	$	1,753,664	$	10,298,971

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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 March 31, 2023
(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	$	2,604	$	607	$	540	$	3,751	$	3,445,538	$	3,449,289	$	0
Lease financing	20,776		1,446		101		22,323		251,575		273,898		0
Construction real estate	0		0		0		0		525,906		525,906		0
Commercial real estate-investor	18		5		0		23		3,102,422		3,102,445		0
Commercial real estate-owner	67		85		5,258		5,410		948,772		954,182		0
Residential real estate	3,341		1,639		2,610		7,590		1,137,479		1,145,069		0
Home equity	1,680		472		1,810		3,962		720,710		724,672		0
Installment	795		555		371		1,721		202,651		204,372		0
Credit card	175		122		160		457		53,095		53,552		159
Total	$	29,456	$	4,931	$	10,850	$	45,237	$	10,388,148	$	10,433,385	$	159

	As of December 31, 2022
(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	$	5,375	$	72	$	501	$	5,948	$	3,404,324	$	3,410,272	$	0
Lease financing	5,212		1,052		843		7,107		229,017		236,124		742
Construction real estate	0		0		0		0		512,050		512,050		0
Commercial real estate-investor	0		0		0		0		3,094,064		3,094,064		0
Commercial real estate-owner	26		5,216		44		5,286		953,409		958,695		0
Residential real estate	4,254		2,074		3,260		9,588		1,082,677		1,092,265		0
Home equity	1,725		729		1,209		3,663		730,128		733,791		0
Installment	874		490		414		1,778		208,117		209,895		0
Credit card	261		150		116		527		51,288		51,815		115
Total	$	17,727	$	9,783	$	6,387	$	33,897	$	10,265,074	$	10,298,971	$	857

Nonaccrual. 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.

Financial Difficulty Modifications. Effective January 1, 2023, First Financial prospectively adopted ASU 2022-02 which eliminated the accounting for TDRs while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties, defined by First Financial as FDMs or Financial Difficulty Modifications. As such, effective with the adoption of the standard, the Company prospectively will not include FDMs in the calculation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included TDRs, has not been adjusted.

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 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

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are intended to reduce the borrower’s monthly payment, while modifications with a payment delay, which typically allow borrowers to make monthly payments, 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 table provides the amortized cost basis of FDM as of March 31, 2023 by class of loan and type of modification:

	March 31, 2023
(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	$	725	$	106	$	0	$	58	$	889	0.08	%
Home equity	0		0		0		0		15		15		0.00	%
Total	$	0	$	725	$	106	$	0	$	73	$	904	0.08	%

The following table provides the financial effect of FDM as of March 31, 2023:

	March 31, 2023
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Residential real estate	$	0	2.00	%	11.6 years
Home equity	0		0.31	%	22.6 years
Total	$	0	1.66	%	12.5 years

The Company has committed to lend no additional amounts to the borrowers experiencing financial difficulty. Additionally, there were no loan modifications made to borrowers experiencing financial difficulty during the quarter ended March 31, 2023, that subsequently defaulted.

The Company closely monitors the performance of FDM to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified since the January 1, 2023 adoption date of ASU 2022-02:

	Payment status as of
	March 31, 2023
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due
Residential real estate	$	889	$	0	$	0	$	0
Home equity	15		0		0		0
Total	$	904	$	0	$	0	$	0

Nonperforming loans. Effective January 1, 2023, loans classified as nonaccrual are considered nonperforming. Prior to the adoption of ASU 2022-02, nonperforming loans included nonaccrual loans as well as TDRs.

First Financial individually reviews all nonperforming loan relationships greater than $250,000 to determine if an individually evaluated allowance is necessary based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Individually evaluated allowances 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.

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The following table provides information on nonperforming loans:

	March 31, 2023						December 31, 2022
(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 (1)
Commercial & industrial	$	9,748	$	4,223	$	13,971	$	6,692	$	1,550	$	8,242
Lease financing	0		175		175		0		178		178
Construction real estate	0		0		0		0		0		0
Commercial real estate	0		5,362		5,362		5,216		570		5,786
Residential real estate	0		11,129		11,129		0		10,691		10,691
Home equity	0		3,399		3,399		0		3,123		3,123
Installment	0		544		544		0		603		603
Total nonaccrual loans	$	9,748	$	24,832	$	34,580	$	11,908	$	16,715	$	28,623

(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million as of December 31, 2022.

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Interest income effect on nonperforming loans
Gross amount of interest that would have been recorded under original terms	$	716	$	773
Interest included in income
Nonaccrual loans	308		290
Troubled debt restructurings	0		51
Total interest included in income	308		341
Net impact on interest income	$	408	$	432

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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.

	March 31, 2023
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	11,054	$	0	$	2,569	$	0	$	0	$	348	$	13,971
Lease financing	0		0		175		0		0		0		175
Commercial real estate-investor	0		5		0		0		20		0		25
Commercial real estate-owner	0		3,326		1,893		118		0		0		5,337
Residential real estate	0		0		0		0		11,129		0		11,129
Home equity	0		0		0		0		3,399		0		3,399
Installment	0		0		0		0		0		544		544
Total	$	11,054	$	3,331	$	4,637	$	118	$	14,548	$	892	$	34,580
	December 31, 2022
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	8,205	$	0	$	0	$	0	$	0	$	37	$	8,242
Lease financing	0		0		178		0		0		0		178
Commercial real estate-investor	0		353		0		0		22		0		375
Commercial real estate-owner	0		3,399		1,893		119		0		0		5,411
Residential real estate	0		0		0		0		10,691		0		10,691
Home equity	0		0		0		0		3,123		0		3,123
Installment	0		0		0		0		0		603		603
Total	$	8,205	$	3,752	$	2,071	$	119	$	13,836	$	640	$	28,623

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 may be indexed to a rate or index. 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.

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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)	March 31, 2023		December 31, 2022
Direct financing leases
Lease receivables	$	31,978	$	35,081
Unguaranteed residual values	14,387		16,058
Sales-type leases
Lease receivables	227,533		184,985
Unguaranteed residual values	0		0
Total net investment in direct financing and sales-type leases	$	273,898	$	236,124

Interest income for direct financing and sales-type leases was $4.9 million and $0.5 million for the three months ended March 31, 2023 and March 31, 2022, respectively.

The remaining maturities of lease receivables were as follows:

(Dollars in thousands)	Direct financing and Sales-type
Remainder of 2023	$	51,984
2024	63,846
2025	56,909
2026	52,425
2027	29,928
Thereafter	41,426
Total lease payments	296,518
Less: unearned interest income	(37,007)
Net lease receivables	$	259,511

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.

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Changes in OREO were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Balance at beginning of period	$	191	$	98
Additions
Commercial & industrial	0		0
Residential real estate	0		72
Total additions	0		72
Disposals
Commercial & industrial	0		(98)
Residential real estate	0		0
Total disposals	0		(98)
Valuation adjustment
Commercial & industrial	0		0
Residential real estate	0		0
Total valuation adjustment	0		0
Balance at end of period	$	191	$	72

NOTE 5:  ALLOWANCE FOR CREDIT LOSSES

Allowance for credit losses - loans and leases. The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or a guarantor or from the liquidation of collateral. Similarly, upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Cumulative recovery payments credited to the ACL for any loan do not exceed the amount charged-off. Accrued interest receivable on loans and leases, which totaled $49.1 million and $47.5 million as of March 31, 2023 and December 31, 2022, respectively, is excluded from the estimate of credit losses. 

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provides the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. These adjustments are commonly known as the Qualitative Framework.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the ACL using the following methods:

Commercial and industrial – C&I loans include revolving lines of credit and term loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, leasehold improvements or other projects. C&I loans are generally underwritten individually and secured with the assets of the Company and/or the personal guarantee of the business owners. C&I loans also include ABL, equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector and commission-based loans to insurance agents and brokers. ABL transactions typically involve larger commercial clients and are secured by specific assets, such as inventory, accounts receivable, machinery and equipment. In the franchise lending space, First Financial focuses on a limited number of restaurant concepts that have sound economics, low closure rates and strong brand awareness within specified local, regional or national markets. Within the insurance lending platform, First Financial serves insurance agents and brokers that are looking to maximize their book-of-business value and grow their agency business.

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Current period default rates are utilized in the modeling of the ACL for C&I loans, and are adjusted for forecasted changes in the treasury term spread and market volatility index. Changes in current period defaults or forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Lease financing – Lease financing consists of lease transactions for the acquisition of both new and used business equipment for commercial clients. Lease products may include tax leases, finance leases, lease lines of credit and interim funding. The credit underwriting for lease transactions includes detailed analysis of the lessee's industry and business model, nature of the equipment, equipment resale values, historical and projected cash flow analysis, secondary sources of repayment and guarantor support in addition to other considerations.

The ACL model for leases sources expected default rates from the C&I portfolio model. Therefore, changes in forecasted expectations for the treasury term spread and market volatility index could result in volatility in the Company's ACL in future periods.

Construction real estate – Real estate construction loans are term loans to individuals, companies or developers used for the construction or development of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Generally, these loans are for construction projects that have been pre-sold, pre-leased or have secured permanent financing, as well as loans to real estate companies with significant equity invested in the project. An independent credit team underwrites construction real estate loans, which are managed by experienced lending officers and monitored through the construction phase by a centralized funding desk that manages loan disbursements.

The construction ACL model is adjusted for forecasted changes in rental vacancy rates in the Bank's geographic footprint and the housing price index. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Commercial real estate - owner & investor – Commercial real estate loans consist of term loans secured by a mortgage lien on real estate properties such as apartment buildings, office and industrial buildings and retail shopping centers. Additionally, the Company's franchise lending activities discussed in the "Commercial and Industrial" section often include the financing of real estate in addition to equipment. The credit underwriting for both owner-occupied and investor income producing real estate loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, environmental risks and the type, age, condition and location of real estate, among other factors.

First Financial models owner-occupied and investor CRE separately when determining the ACL. For owner occupied CRE, current period default rates are utilized in the modeling, and are adjusted for forecasted changes in the BAA bond spread, national rental vacancy rates and the consumer confidence index. Current period default rates are also utilized in the modeling of investor CRE loans, and are adjusted for forecasted changes in the BAA bond spread, multifamily building permits within the Bank’s geographic footprint and national rental vacancy rates. Changes in current period defaults and forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Residential real estate – Residential real estate loans represent loans to consumers for the financing of a residence. These loans generally have a 15 to 30 year term and a fixed interest rate, but may have a shorter term to maturity with an adjustable interest rate. In most cases, these loans are extended to borrowers to finance their primary residence. First Financial sells residential real estate loan originations into the secondary market on both servicing retained and servicing released bases. Residential real estate loans are generally underwritten to secondary market lending standards, utilizing underwriting processes that rely on empirical data to assess credit risk as well as analysis of the borrower's ability to repay their obligations, credit history, the amount of any down payment and the market value or other characteristics of the property. First Financial also offers a residential mortgage product that features similar borrower credit characteristics but a more streamlined underwriting process than typically required to sell to government-sponsored enterprises and thus is retained on the Consolidated Balance Sheets.

The residential real estate ACL model is adjusted for forecasted changes in the housing price index, housing starts within the Bank’s geographic footprint and national single-family existing home sales. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Home equity – Home equity lending includes both term loans and revolving lines of credit secured by a first or second lien on the borrower’s residence. Home equity lending underwriting considerations include the borrower's credit history as well as to debt-to-income and loan-to-value policy limits.

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The home equity ACL model is adjusted for forecasted changes in the consumer credit growth rate within the Bank’s geographic footprint and the working-age labor participation rate. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Installment – Installment lending consists of consumer loans not secured by real estate, including loans secured by automobiles and unsecured personal loans.

The ACL model for installment loans sources expected default rates from the residential real estate and home equity portfolio models and is paired with installment specific LGD rates. Changes in forecasted expectations for the consumer credit growth rate within the Bank’s geographic footprint, the working-age labor participation rate, the housing price index, housing starts within the Bank’s geographic footprint and national existing single-family existing home sales could result in volatility in the Company's ACL in future periods.

Credit card – Credit card lending consists of secured and unsecured revolving lines of credit to consumer and business customers. Credit card lines are generally available for an indefinite period of time as long as the borrower's credit characteristics do not materially or adversely change, but lines are unconditionally cancellable by the Company at any time.

The ACL model for credit card loans sources expected default rates from the residential real estate and home equity portfolio models and is paired with credit card specific LGD rates. Changes in forecasted expectations for the consumer credit growth rate within the Bank’s geographic footprint, the working-age labor participation rate, the housing price index, housing starts within the Bank’s geographic footprint and national existing single-family existing home sales could result in volatility in the Company's ACL in future periods.

The Company utilized the Moody's March baseline forecast as its R&S forecast in the quantitative model. For reasonableness, the Company also considered the impact to the model from alternative, more adverse economic forecasts, slower prepayment speeds and increased default rates. These alternative analyses were utilized to inform the Company's qualitative adjustments. Additionally, First Financial considered its credit exposure to certain industries believed to be at risk for future credit stress, such as franchise, hotel and investor commercial real estate lending when making qualitative adjustments to the ACL model.

First Financial's ACL is influenced by loan volumes, risk rating migration or delinquency status, and other conditions impacting loss expectations, such as reasonable and supportable forecasts of economic conditions. For the three months ended March 31, 2023, the ACL increased from year end due to loan growth, slower prepayment speeds, and changes in economic forecasts.

Changes in the allowance by loan category were as follows:

	Three months ended March 31, 2023
(Dollars in thousands)	Commercial & industrial		Lease financing		Construction real estate		Commercial real estate		Residential real estate		Home equity		Installment		Credit card		Total
Allowance for credit losses:
Beginning balance	$	42,313	$	3,571	$	13,527	$	41,106	$	12,684	$	12,447	$	4,945	$	2,384	$	132,977
Provision for credit losses	4,213		391		119		(1,258)		2,786		944		1,218		231		8,644
Loans charged off	(730)		(13)		0		(66)		0		(91)		(1,524)		(217)		(2,641)
Recoveries	109		1		0		2,238		66		80		54		63		2,611
Total net charge-offs	(621)		(12)		0		2,172		66		(11)		(1,470)		(154)		(30)
Ending allowance for credit losses	$	45,905	$	3,950	$	13,646	$	42,020	$	15,536	$	13,380	$	4,693	$	2,461	$	141,591
	Three months ended March 31, 2022
(Dollars in thousands)	Commercial & industrial		Lease financing		Construction real estate		Commercial real estate		Residential real estate		Home equity		Installment		Credit card		Total
Allowance for credit losses:
Beginning balance	$	44,052	$	1,633	$	11,874	$	53,420	$	6,225	$	9,643	$	1,097	$	4,048	$	131,992
Provision for credit losses	(3,803)		558		(464)		(2,130)		(141)		(211)		134		468		(5,589)
Loans charged off	(2,845)		(131)		0		0		(22)		(21)		(177)		(246)		(3,442)
Recoveries	379		33		0		222		90		265		21		159		1,169
Total net charge-offs	(2,466)		(98)		0		222		68		244		(156)		(87)		(2,273)
Ending allowance for credit losses	$	37,783	$	2,093	$	11,410	$	51,512	$	6,152	$	9,676	$	1,075	$	4,429	$	124,130

Allowance for credit losses - unfunded commitments. First Financial estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is

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unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases.

First Financial determined the adequacy of this reserve based upon an evaluation of the unfunded credit facilities, which included consideration of historical commitment utilization experience, credit risk ratings and historical loss rates, consistent with the Company's ACL methodology at the time.

The ACL on unfunded commitments was $20.2 million as of March 31, 2023 and $18.4 million as of December 31, 2022. Additionally, First Financial recorded a provision for credit losses on unfunded commitments of $1.8 million for the three months ended March 31, 2023. First Financial recorded provision recapture of $0.2 million for the three months ended March 31, 2022.

NOTE 6:  GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill. Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess of the purchase price of the acquisition over the fair value of net assets acquired is recorded as goodwill.

Changes in the carrying amount of goodwill for the three months ended March 31, 2023 and March 31, 2022 were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Balance at beginning of period	$	1,001,507	$	1,000,749
Goodwill resulting from business combinations	4,231		(790)
Balance at end of period	$	1,005,738	$	999,959

In the first quarter of 2023, First Financial recorded $4.2 million of goodwill related to the acquisition of the assets of Brady Ware Capital. Brady Ware Capital specializes in buy-side and sell-side consulting services for mid-sized businesses. This acquisition is consistent with First Financial's approach of adding niche financial services to core banking capabilities and further expands our broad service offerings. The fair value measurements of Brady Ware assets and liabilities are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available, and the measurement period ends in January 2024.

In the first quarter of 2022, First Financial recorded adjustments of $0.8 million to goodwill resulting from the acquisition of Summit Funding Group, Inc. First Financial recorded its final adjustments to goodwill related to the Summit acquisition in the fourth quarter of 2022.

Goodwill is evaluated for impairment on an annual basis as of October 1 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. First Financial performed its most recent annual impairment test as of October 1, 2022 and no impairment was indicated. As of March 31, 2023, no events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value.

Other intangible assets. Other intangible assets consist primarily of core deposit, customer list, mortgage servicing rights and other miscellaneous intangibles, such as purchase commissions, non-compete agreements and trade name intangibles.

Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis over their estimated useful lives. First Financial's core deposit intangibles have an estimated weighted average remaining life of 5.0 years.

First Financial recorded a customer list intangible asset in conjunction with the Summit acquisition to account for the obligation or advantage on the part of either the Company or the customer to continue the pre-existing relationship subsequent to the merger. The customer list intangible asset is being amortized on a straight-line basis over its estimated useful life of 12 years and was $27.0 million and $27.6 million at March 31, 2023 and December 31, 2022, respectively. Additionally, First Financial recorded a customer list intangible asset in conjunction with the Bannockburn acquisition which is being amortized on a straight-line basis over its estimated useful life of 11 years and was $26.6 million and $27.5 million at March 31, 2023 and December 31, 2022, respectively.   

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Amortization expense recognized on other intangible assets for the three months ended March 31, 2023 and March 31, 2022 was $3.3 million and $3.7 million, which includes MSR amortization of $0.7 million and $0.8 million, respectively. MSR amortization is included in other noninterest income on the Consolidated Statements of Income.

Mortgage servicing rights represent the value of servicing fees First Financial expects to receive from the servicing responsibilities it retained when selling fixed and adjustable-rate residential mortgage loans. In those sales, First Financial retained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Company’s other assets for failure of debtors to pay when due. First Financial receives servicing fees based on a percentage of the outstanding balance. When First Financial sells mortgage loans with servicing rights retained, these servicing rights are initially recorded at fair value. First Financial has selected the “amortization method” as permissible within U.S. GAAP, whereby the servicing rights capitalized are amortized in proportion to and over the period of estimated future servicing income with respect to the underlying loan. At the end of each reporting period, the carrying value of MSRs is assessed for impairment with a comparison to fair value. MSRs are carried at the lower of their amortized cost or fair value. The amortization of MSRs is included within other noninterest income in the Consolidated Statements of Income.

The gross carrying amount and accumulated amortization of other intangible assets at March 31, 2023 and December 31, 2022 were as follows:

(Dollars in thousands)	March 31, 2023				December 31, 2022
	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
Core deposit intangibles	$	41,750	$	(27,215)	$	41,750	$	(26,488)
Customer list	69,563		(15,981)		69,563		(14,457)
Other	10,960		(4,253)		14,079		(7,064)
Mortgage servicing rights	21,623		(5,278)		21,347		(4,811)
Total	$	143,896	$	(52,727)	$	146,739	$	(52,820)

NOTE 7:  LEASES - LESSEE

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. For contracts where First Financial is a lessee, substantially all of those agreements are for real estate property for branches, ATM locations and office space.

Substantially all of the company's leases are classified as operating leases. Under Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as an ROU asset and a corresponding lease liability. The Company's right to use an asset over the life of a lease is recorded as a ROU asset in Accrued interest and other assets on the Consolidated Balance Sheets and was $53.2 million and $54.3 million at March 31, 2023 and December 31, 2022, respectively. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. First Financial recorded a $63.2 million and $64.5 million lease liability in Accrued interest and other liabilities on the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet and First Financial recognizes lease expense for these leases on a straight-line basis over the term of the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of renewal options on operating leases is at the Company's sole discretion, and certain leases may include options to purchase the leased property. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. First Financial does not enter into lease agreements which contain material residual value guarantees or material restrictive covenants.

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Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements and leases generally also include real estate taxes and common area maintenance charges in the annual rental payments.

The components of lease expense were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Operating lease cost	$	1,914	$	1,899
Short-term lease cost	0		3
Variable lease cost	758		739
Total operating lease cost	$	2,672	$	2,641

Future minimum commitments due under these lease agreements as of March 31, 2023 are as follows:

(Dollars in thousands)	Operating leases
2023 (remaining nine months)	$	5,746
2024	7,359
2025	7,052
2026	6,782
2027	6,224
Thereafter	46,828
Total lease payments	79,991
Less imputed interest	(16,789)
Total	$	63,202

The weighted average remaining lease term and discount rate for the Company's operating leases were as follows:

	March 31, 2023		December 31, 2022
Operating leases
Weighted-average remaining lease term	13.0 years		13.1 years
Weighted-average discount rate	3.30	%	3.29	%

Supplemental cash information at March 31, 2023 and 2022 related to leases was as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,970	$	1,942
ROU assets obtained in exchange for lease obligations
Operating leases	501		2,001

NOTE 8: OPERATING LEASES - LESSOR

First Financial provides financing for various types of equipment through a variety of leasing arrangements. Operating leases are carried at cost less accumulated depreciation in the Consolidated Balance Sheets. Operating leases were $154.0 million and $91.7 million at March 31, 2023 and December 31, 2022, respectively, net of accumulated depreciation of $42.2 million and $35.0 million at March 31, 2023 and December 31, 2022, respectively. The Company recorded lease income of $10.2 million and $4.7 million related to lease payments for operating leases in leasing business revenue in the Consolidated Statement of Income for the three months ended March 31, 2023 and 2022, respectively. Depreciation expense related to operating lease equipment was $7.9 million and $3.9 million for the three months ended March 31, 2023 and 2022, respectively.

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First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. First Financial recognized no impairment losses associated with operating lease assets for the three months ended March 31, 2023 or 2022. Recognized impairment losses, if any, would be recorded in Leasing business income in the Consolidated Statements of Income.

The future lease payments receivable from operating leases as of March 31, 2023 are as follows:

(Dollars in thousands)	Undiscounted cash flows
2023 (remaining nine months)	$	26,638
2024	30,263
2025	21,311
2026	13,299
2027	5,297
Thereafter	2,009
Total operating lease payments	$	98,817

NOTE 9:  BORROWINGS

Short-term borrowings on the Consolidated Balance Sheets include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, federal funds purchased, overnight advances from the FHLB and a short-term line of credit.

All repurchase agreements are subject to terms and conditions agreed to by the Bank and the client. To secure its liability to the client, the Bank is authorized to sell or repurchase U.S. Treasury, government agency and mortgage-backed securities. As of both March 31, 2023 and December 31, 2022, the Bank had no securities sold under agreements to repurchase.

First Financial had no federal funds purchased at March 31, 2023 or December 31, 2022, while the Company had $1.1 billion in short-term borrowings with the FHLB at both March 31, 2023 and December 31, 2022. These short-term borrowings are used to manage normal liquidity needs and support the Company's asset and liability management strategies. Additionally, at March 31, 2023 and December 31, 2022, other short-term borrowings included $128.2 million and $157.2 million, respectively, of collateral owed by counterparty banks to First Financial.

First Financial also has a $40.0 million short-term credit facility with an unaffiliated bank that matures in December, 2023, which is considered a short-term borrowing. This facility has a variable interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of both March 31, 2023 and December 31, 2022, First Financial had no outstanding balance. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of both March 31, 2023 and December 31, 2022. This credit facility also required First Financial to pledge as collateral the Bank's common stock where the lender is granted a security interest in this collateral.

The following is a summary of First Financial's short-term borrowings:

(Dollars in thousands)	March 31, 2023		December 31, 2022
FHLB short-term borrowings	$	1,089,400	$	1,130,000
Other short-term borrowings	128,160		157,156
Total short-term borrowings	$	1,217,560	$	1,287,156

First Financial had $342.6 million and $346.7 million of long-term debt as of March 31, 2023 and December 31, 2022 respectively, which included subordinated notes, capital lease liabilities and an interest free loan with a municipality.

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The following is a summary of First Financial's long-term debt:

	March 31, 2023				December 31, 2022
(Dollars in thousands)	Amount		Average rate		Amount		Average rate
Subordinated notes	$	313,820	5.52	%	$	313,705	5.48	%
Unamortized debt issuance costs	(1,902)		N/A		(1,998)		N/A
Notes issued in conjunction with acquisition of property and equipment	28,277		4.42	%	32,492		4.44	%
Capital lease liability	1,677		3.83	%	1,698		3.82	%
Capital loan with municipality	775		0.00	%	775		0.00	%
Total long-term debt	$	342,647	5.44	%	$	346,672	5.40	%

In 2015, First Financial issued $120.0 million of subordinated notes, which have a fixed interest rate of 5.13% payable semiannually and mature in August 2025. These notes are not redeemable by the Company, or callable by the holders of the notes prior to maturity.

In April 2020, First Financial issued $150.0 million of fixed to floating rate subordinated notes. These subordinated notes have an initial fixed interest rate of 5.25% to, but excluding, May 15, 2025, payable semi-annually in arrears. From, and including, May 15, 2025, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term SOFR, plus 509 basis points, payable quarterly in arrears. The subordinated notes mature on May 15, 2030. These notes are redeemable by the Company in whole or in part beginning with the interest payment date of May 15, 2025.

In addition, First Financial acquired $49.5 million of variable rate subordinated notes in the MSFG merger that were issued to previously formed trusts in exchange for the trust proceeds. These notes were recorded at fair value at the date of the MSFG merger and the Consolidated Balance Sheets include $43.8 million and $43.7 million for these notes at March 31, 2023 and December 31, 2022, respectively. Interest on the acquired subordinated notes is payable quarterly, in arrears, and the Company has the option to defer interest payments for a period not to exceed 20 consecutive quarters. These acquired subordinated notes mature 30 years after the date of original issuance and may be called at par following the 5 year anniversary of issuance. Subordinated notes are treated as Tier 2 capital for regulatory capital purposes and are included in Long-term debt on the Consolidated Balance Sheets.

Additionally, long-term borrowings included $28.3 million and $32.5 million of term notes, both with and without recourse, with an average interest rate of 4.42% and 4.44% at March 31, 2023 and December 31, 2022, respectively. These term notes were used to finance equity investments in the purchase of equipment to be leased to customers.

NOTE 10:  ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss).  The following table summarizes the changes within each classification of AOCI:

	Three months ended March 31, 2023
	Total other comprehensive income (loss)										Total accumulated other comprehensive income (loss)
(Dollars in thousands)	Prior to reclass		Reclass from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Unrealized gain (loss) on debt securities	$	39,617	$	519	$	39,098	$	(8,613)	$	30,485	$	(325,925)	$	30,485	$	(295,440)
Retirement obligation	0		(150)		150		(35)		115		(32,023)		115		(31,908)
Foreign currency translation	4		0		4		0		4		(715)		4		(711)
Total	$	39,621	$	369	$	39,252	$	(8,648)	$	30,604	$	(358,663)	$	30,604	$	(328,059)

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	Three months ended March 31, 2022
	Total other comprehensive income (loss)										Total accumulated other comprehensive income (loss)
(Dollars in thousands)	Prior to reclass		Reclass from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Unrealized gain (loss) on debt securities	$	(182,479)	$	(3)	$	(182,476)	$	40,075	$	(142,401)	$	21,038	$	(142,401)	$	(121,363)
Retirement obligation	0		(325)		325		21		346		(20,846)		346		(20,500)
Foreign currency translation	11		0		11		0		11		(625)		11		(614)
Total	$	(182,468)	$	(328)	$	(182,140)	$	40,096	$	(142,044)	$	(433)	$	(142,044)	$	(142,477)

The following table presents the activity reclassified from accumulated other comprehensive income into income during the three month periods ended March 31, 2023 and 2022, respectively:

	Amount reclassified from accumulated other comprehensive income (loss)
	Three months ended
	March 31,
(Dollars in thousands)	2023		2022		Affected Line Item in the Consolidated Statements of Income
Realized gain (loss) on securities available-for-sale	$	519	$	(3)	Net gain (loss) on sales of investments securities
Defined benefit pension plan
Amortization of prior service cost (1)	0		75		Other noninterest expense
Recognized net actuarial loss (1)	(150)		(400)		Other noninterest expense
Defined benefit pension plan total	(150)		(325)
Total reclassifications for the period, before tax	$	369	$	(328)

(1) Included in the computation of net periodic pension cost (see Note 14 - Employee Benefit Plans for additional details).

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NOTE 11:  DERIVATIVES

First Financial uses certain derivative instruments, including interest rate caps, floors, swaps and foreign exchange contracts, to meet the needs of its clients while managing the interest and currency rate risk associated with certain transactions.  First Financial may also utilize interest rate swaps to manage the interest rate risk profile of the Company. Interest rate payments are exchanged with counterparties based on the notional amount established in the interest rate agreement. As only interest rate payments are exchanged, the cash requirements and credit risk associated with interest rate swaps are significantly less than the notional amount and the Company’s credit risk exposure is limited to the market value of the instruments. First Financial does not use derivatives for speculative purposes.

First Financial manages market value credit risk through counterparty credit policies including a review of total derivative notional position to total assets, total credit exposure to total capital and counterparty credit exposure risk.

Client derivatives. First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets.

At March 31, 2023, for the interest rate derivatives, the Company had a total counterparty notional amount outstanding of $2.2 billion, spread among six counterparties, with an estimated fair value of $107.7 million. At December 31, 2022, the Company had interest rate derivatives with a total counterparty notional amount outstanding of $2.2 billion, spread among six counterparties, with an estimated fair value of $145.8 million.

First Financial monitors its derivative credit exposure to borrowers by monitoring the creditworthiness of the related loan customers through the Company's normal credit review processes. Additionally, the Company monitors derivative credit risk exposure related to problem loans through its ACL Committee. First Financial considers the market value of a derivative instrument to be part of the carrying value of the related loan for these purposes as the borrower is contractually obligated to pay First Financial this amount in the event the derivative contract is terminated.

In connection with its use of derivative instruments, First Financial and its counterparties may be required to post cash collateral to offset the market position of the derivative instruments. First Financial maintains the right to offset these derivative positions with the collateral posted against them by or with the relevant counterparties.

Foreign exchange contracts. First Financial may enter into foreign exchange derivative contracts for the benefit of commercial customers to hedge their exposure to foreign currency fluctuations. Similar to the hedging of interest rate risk from interest rate derivative contracts, First Financial also enters into foreign exchange contracts with major financial institutions to economically hedge a substantial portion of the exposure from client driven foreign exchange activity. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Foreign exchange income in the Consolidated Statements of Income. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken in providing this service to customers. These controls include an independent determination of currency volatility and credit equivalent exposure on these contracts, counterparty credit approvals and country limits performed by independent risk management. At March 31, 2023, the Company had total counterparty notional amount outstanding of $7.9 billion spread among five counterparties, with an estimated fair value of $21.5 million. At December 31, 2022, the Company had total counterparty notional amounts outstanding of $7.7 billion spread among five counterparties, with an estimated fair value of $17.3 million.

In connection with its use of foreign exchange contracts, First Financial and its counterparties may be required to post cash collateral to offset the market position of the derivative instruments. First Financial maintains the right to offset these derivative positions with the collateral posted against them by or with the relevant counterparties.

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The following table details the classification and amounts of client derivatives and foreign exchange contracts recognized in the Consolidated Balance Sheets:

		March 31, 2023						December 31, 2022
				Estimated fair value						Estimated fair value
(Dollars in thousands)	Balance sheet classification	Notional amount		Gain		Loss		Notional amount		Gain		Loss
Client derivatives - instruments associated with loans
Matched interest rate swaps with borrower	Accrued interest and other assets	$	2,248,403	$	10,458	$	(114,269)	$	2,206,351	$	5,057	$	(147,759)
Matched interest rate swaps with counterparty	Accrued interest and other liabilities	2,248,403		114,269		(10,458)		2,206,351		147,759		(5,057)
Foreign exchange contracts
Matched foreign exchange contracts with customers	Accrued interest and other assets	7,927,466		99,348		(77,863)		7,734,395		111,078		(93,804)
Match foreign exchange contracts with counterparty	Accrued interest and other liabilities	7,881,266		77,863		(99,348)		7,681,006		93,804		(111,078)
Total		$	20,305,538	$	301,938	$	(301,938)	$	19,828,103	$	357,698	$	(357,698)

The following table discloses the gross and net amounts of client derivatives and foreign exchange contracts recognized in the Consolidated Balance Sheets:

	March 31, 2023						December 31, 2022
(Dollars in thousands)	Gross amounts of recognized liabilities		Gross amounts offset in the Consolidated Balance Sheets		Net amounts of (assets)/liabilities presented in the Consolidated Balance Sheets		Gross amounts of recognized liabilities		Gross amounts offset in the Consolidated Balance Sheets		Net amounts of (assets)/liabilities presented in the Consolidated Balance Sheets
Client derivatives (1)
Matched interest rate swaps with counterparty	$	124,727	$	(252,151)	$	(127,424)	$	152,816	$	(314,048)	$	(161,232)
Foreign exchange contracts with counterparty	177,211		(89,625)		87,586		204,882		(101,945)		102,937
Total	$	301,938	$	(341,776)	$	(39,838)	$	357,698	$	(415,993)	$	(58,295)
(1) Includes accrued interest receivable and collateral.

The following table details the derivative financial instruments, the average remaining maturities and the weighted-average interest rates being paid and received by First Financial at March 31, 2023:

(Dollars in thousands)	Notional amount		Average maturity (years)	Fair value
Client derivatives-interest rate contracts
Receive fixed, matched interest rate swaps with borrower	$	2,248,403	5.2	$	(103,811)
Pay fixed, matched interest rate swaps with counterparty	2,248,403		5.2	103,811
Client derivatives-foreign exchange contracts
Foreign exchange contracts-pay USD	7,927,466		0.6	21,485
Foreign exchange contracts-receive USD	7,881,266		0.6	(21,485)
Total client derivatives	$	20,305,538	1.6	$	0

At March 31, 2023, the derivative collateral owed by the Company to counterparty banks was $102.1 million with $26.1 million restricted within cash and due from banks on the Company's Consolidated Balance Sheets and $128.2 million recorded in short-term borrowings. Derivative collateral owed by counterparty banks to the Company at December 31, 2022 was $132.2 million with $25.0 million restricted within cash and due from banks and $157.2 million recorded in short-term borrowings.

Credit derivatives. In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial assumes a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will make payments to the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract with the counterparty. The total notional value of these agreements totaled $386.8 million as of March 31, 2023 and $379.3 million

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as of December 31, 2022. The fair value of these agreements is recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets and was insignificant at March 31, 2023 and at December 31, 2022.

Mortgage derivatives. First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure IRLCs with First Financial and the loans are intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale. At March 31, 2023, the notional amount of the IRLCs was $32.0 million and the notional amount of forward commitments was $27.5 million. As of December 31, 2022, the notional amount of IRLCs was $12.0 million and the notional amount of forward commitments was $15.3 million. The fair value on these agreements was $0.5 million and $4.3 million at March 31, 2023 and December 31, 2022, respectively, and was recorded in accrued interest and other assets on the Consolidated Balance Sheets.

NOTE 12:  COMMITMENTS AND CONTINGENCIES

First Financial offers a variety of financial instruments including loan commitments and letters of credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements.

First Financial utilizes the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. First Financial’s exposure to credit loss in the event of non-performance by the counterparty was represented by the contractual amounts of those instruments. First Financial adopted ASC 326 and therefore estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases. Adjustments to the reserve for unfunded commitments are recorded in Provision for credit losses - unfunded commitments in the Consolidated Statements of Income. First Financial had $20.2 million and $18.4 million of reserves for unfunded commitments recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, respectively.

Loan commitments. Loan commitments are agreements to extend credit to a client, absent any violation of conditions established in the commitment agreement.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since many of the commitments will expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The amount of collateral obtained, if deemed necessary by First Financial upon extension of credit, is based on management’s credit evaluation of the client.  The collateral held varies, but may include securities, real estate, inventory, plant or equipment.  First Financial had commitments outstanding to extend credit totaling $4.6 billion at March 31, 2023 and $4.4 billion at December 31, 2022. As of March 31, 2023, loan commitments with a fixed interest rate totaled $111.1 million while commitments with variable interest rates totaled $4.5 billion. At December 31, 2022, loan commitments with a fixed interest rate totaled $126.3 million while commitments with variable interest rates totaled $4.2 billion. First Financial's fixed rate loan commitments have interest rates ranging from 0.00% to 21.00% for both March 31, 2023 and December 31, 2022 and have maturities ranging from less than one year to 31.0 years for March 31, 2023 and maturities ranging from less than one year to 31.6 years for December 31, 2022.

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The following table presents by type First Financial's active loan balances and related obligations to extend credit:

	March 31, 2023				December 31, 2022
(dollars in thousands)	Unfunded commitment		Loan balance		Unfunded commitment		Loan balance
Commercial & industrial	$	1,868,883	$	3,449,289	$	1,833,977	$	3,410,272
Lease financing	6,847		273,898		6,842		236,124
Construction real estate	704,719		525,906		689,015		512,050
Commercial real estate-investor	107,150		3,102,445		107,205		3,094,064
Commercial real estate-owner	35,040		954,182		48,208		958,695
Residential real estate	76,860		1,145,069		74,089		1,092,265
Home equity	929,440		724,672		903,459		733,791
Installment	20,791		204,372		16,073		209,895
Credit card	218,579		53,552		225,864		51,815
Total	$	3,968,309	$	10,433,385	$	3,904,732	$	10,298,971

Letters of credit. Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party.  First Financial’s letters of credit consist of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services.  The risk to First Financial arises from its obligation to make payment in the event of the client's contractual default to produce the contracted good or service to a third party.  First Financial issued letters of credit aggregating $32.2 million and $31.5 million at March 31, 2023 and December 31, 2022, respectively. Management conducts regular reviews of these instruments on an individual client basis.

Risk participation agreements. First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $386.8 million and $379.3 million at March 31, 2023 and December 31, 2022, respectively.

Affordable housing projects and other tax credit investments. First Financial is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in Accrued interest and other assets in the Consolidated Balance Sheets, with any unfunded commitments included in Accrued interest and other liabilities in the Consolidated Balance Sheets. As of March 31, 2023, First Financial expects to recover its remaining investments through the use of the tax credits that are generated by the investments.

The following table summarizes First Financial's investments in affordable housing projects and other tax credit investments.

(Dollars in thousands)		March 31, 2023				December 31, 2022
Investment	Accounting Method	Investment		Unfunded commitment		Investment		Unfunded commitment
LIHTC	Proportional amortization	$	124,454	$	69,356	$	126,537	$	70,690
HTC	Equity	17,108		11,955		17,108		11,955
NMTC	Equity	2,695		0		2,944		0
Renewable energy	Equity	24,417		13,008		11,851		1,689
Total		$	168,674	$	94,319	$	158,440	$	84,334

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The following table summarizes First Financial's amortization expense and tax benefit recognized in affordable housing projects and other tax credit investments.

	Three months ended
	March 31, 2023				March 31, 2022
(Dollars in thousands)	Amortization expense (1)		Tax expense (benefit) recognized (2)		Amortization expense (1)		Tax expense (benefit) recognized (2)
LIHTC	$	3,327	$	(3,540)	$	3,048	$	(2,959)
HTC	0		(80)		0		(80)
NMTC	104		(53)		104		(53)
Renewable energy	0		0		0		0
Total	$	3,431	$	(3,673)	$	3,152	$	(3,092)
(1) The amortization expense for the LIHTC investments is included in income tax expense. The amortization expense for the HTC, NMTC, and Renewable energy tax credits is included in other noninterest expense.
(2) All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the HTC, NMTC, and Renewable energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).

Contingencies/Litigation. First Financial and its subsidiaries are engaged in various matters of litigation and have a number of unresolved claims pending.

Like many banks, First Financial has been the subject of lawsuits relating to overdraft fees. This type of litigation is time consuming and expensive in large part due to the amount of data to be sorted and disclosed, in some cases going back multiple years. No legal settlement expenses were accrued or paid in the three months ended March 31, 2023. During the three months ended March 31, 2022, legal settlement expenses of $3.3 million were paid.

Additionally, as part of the ordinary course of business, First Financial and its subsidiaries are parties to other litigation, including claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, foreclosure interests that are incidental to our regular business activities and other matters. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of March 31, 2023. Reserves are established for these various matters of litigation when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel. First Financial had no reserves related to litigation matters as of March 31, 2023 or December 31, 2022.

NOTE 13:  INCOME TAXES

For the first quarter of 2022, the Company recorded income tax expense of $17.3 million, resulting in an effective tax rate of 19.7% compared with $9.3 million and an effective tax rate of 18.5% for the comparable period in 2022. The increase in the effective tax rate is primarily driven by higher full year forecasted income for 2023 compared to 2022.

At both March 31, 2023 and December 31, 2022, First Financial had $1.9 million of unrecognized tax benefits, as determined under FASB ASC Topic 740-10, Income Taxes, that if recognized would favorably impact the effective income tax rate in future periods. The unrecognized tax benefits relate to state income tax exposures where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial. The Company believes that resolution regarding its uncertain tax positions is reasonably possible within the next twelve months and could result in full, partial or no recognition of the benefit. First Financial recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. At March 31, 2023 and December 31, 2022, the Company had no interest or penalties recorded.

First Financial and its subsidiaries are subject to U.S. federal income tax as well as state and local income tax in several jurisdictions.  Tax years prior to 2019 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2019 through 2022 remain open to examination by the federal taxing authority. With limited exception, First Financial is no longer subject to state and local income tax examinations for years prior to 2018.

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NOTE 14:  EMPLOYEE BENEFIT PLANS

First Financial sponsors a non-contributory defined benefit pension plan which covers substantially all employees and uses a December 31 measurement date. Plan assets are primarily invested in fixed income and publicly traded equity mutual funds. The pension plan does not directly own any shares of First Financial common stock or any other First Financial security or product.

First Financial made no cash contributions to fund the pension plan during the three months ended March 31, 2023 or the year ended December 31, 2022, and does not expect to make cash contributions to the plan through the remainder of 2023.

As a result of the plan’s actuarial projections, First Financial recorded expense as set forth in the following table. The amounts are recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan.

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Service cost	$	2,350	$	2,425
Interest cost	1,075		625
Expected return on assets	(2,700)		(2,750)
Amortization of prior service cost	0		(75)
Net actuarial loss	150		400
Net periodic benefit cost (income)	$	875	$	625

NOTE 15:  REVENUE RECOGNITION

The majority of the Company’s revenues come from sources that are outside of the scope of ASU 2014-09, Revenue from Contracts with Customers. Income sources that are outside of this standard include income earned on loans, leases, securities, derivatives and foreign exchange. The Company's services that fall within the scope of ASU 2014-09 are presented within Noninterest income and are recognized as revenue when the Company satisfies its obligation to the customer. Services within the scope of this guidance include service charges on deposits, trust and wealth management fees, bankcard income, gain/loss on the sale of OREO and investment brokerage fees.

Service charges on deposit accounts. The Company earns revenues from its deposit customers for transaction-based fees, account maintenance fees and overdraft fees. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Similarly, overdraft fees are recognized at the point in time that the overdraft occurs as this corresponds with the Company's performance obligation. Service charges on deposit accounts are withdrawn from the customer's deposit account.

Trust and wealth management fees. Trust and wealth management fees are primarily asset-based, but can also include flat fees based upon a specific service rendered, such as tax preparation services. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fees. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and wealth management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, as incurred.

Trust and wealth management fees also includes brokerage revenue. Brokerage revenue represents fees from investment brokerage services provided to customers by a third party provider. The Company receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are paid the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs.

Bankcard income. The Company earns interchange fees from cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are

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recognized concurrent with the transaction processing services provided to the cardholder. Interchange income is presented on the Consolidated Statements of Income net of expenses. Gross interchange income for the first three months of 2023 was $7.2 million, partially offset by $3.6 million of expenses within Noninterest income. Gross interchange income for the same period in 2022 was $6.9 million, partially offset by $3.6 million of expenses within Noninterest income.

Other. Other noninterest income includes recurring revenue streams such as transaction fees, safe deposit rental income, insurance commissions, merchant referral income and gain (loss) on sale of OREO. Transaction fees primarily include check printing sales commissions, collection fees and wire transfer fees which arise from in-branch transactions. Safe deposit rental income arises from fees charged to the customer on an annual basis and recognized upon receipt of payment. Insurance commissions are agent commissions earned by the Company and earned upon the effective date of the bound coverage. Merchant referral income is associated with a program whereby the Company receives a share of processing revenue that is generated from clients that were referred by First Financial to the service provider. Revenue is recognized at the time the transaction occurs.

The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of the executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectibility of the transaction price is probable. Once these criteria are met, the OREO asset is removed and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer.

NOTE 16:  EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

	Three months ended
	March 31,
(Dollars in thousands, except per share data)	2023		2022
Numerator
Net income available to common shareholders	$	70,403	$	41,301
Denominator
Weighted average shares outstanding for basic earnings per common share	93,732,532		93,383,932
Effect of dilutive securities
Employee stock awards	1,227,626		879,993
Adjusted weighted average shares for diluted earnings per common share	94,960,158		94,263,925
Earnings per share available to common shareholders
Basic	$	0.75	$	0.44
Diluted	$	0.74	$	0.44

Stock options and warrants with exercise prices greater than the average market price of the common shares were not included in the computation of net income per diluted share, as they would have been antidilutive.  Using the end of period price of the Company's common shares, there were no antidilutive options at March 31, 2023 and March 31, 2022.  

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NOTE 17:  FAIR VALUE DISCLOSURES

The fair value framework as disclosed in the Fair Value Topic includes a hierarchy which focuses on prioritizing the inputs used in valuation techniques.  The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), a lower priority to observable inputs other than quoted prices in active markets for identical assets and liabilities (Level 2) and the lowest priority to unobservable inputs (Level 3).  When determining the fair value measurements for assets and liabilities, First Financial looks to active markets to price identical assets or liabilities whenever possible and classifies such items in Level 1.  When identical assets and liabilities are not traded in active markets, First Financial looks to observable market data for similar assets and liabilities and classifies such items as Level 2.  Certain assets and liabilities are not actively traded in observable markets and First Financial must use alternative techniques, based on unobservable inputs, to determine the fair value and classifies such items as Level 3. The level within the fair value hierarchy is based on the lowest level of input that is significant in the fair value measurement.

The estimated fair values of First Financial’s financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:

	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
March 31, 2023
Financial assets
Cash and short-term investments	$	505,300	$	505,300	$	505,300	$	0	$	0
Investment securities held-to-maturity	83,070		75,762		0		75,762		0
Other investments	143,606		143,606		1,076		133,159		9,371
Loans and leases	10,291,794		9,923,707		0		0		9,923,707
Accrued interest receivable	65,006		65,006		0		15,933		49,073
Financial liabilities
Deposits	12,674,684		12,644,951		0		12,644,951		0
Short-term borrowings	1,217,560		1,217,560		1,217,560		0		0
Long-term debt	342,647		344,131		0		344,131		0
Accrued interest payable	29,896		29,896		8,671		21,225		0

	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2022
Financial assets
Cash and short-term investments	$	595,683	$	595,683	$	595,683	$	0	$	0
Investment securities held-to-maturity	84,021		76,485		0		76,485		0
Other investments	143,160		143,160		1,171		132,853		9,136
Loans and leases	10,165,994		9,916,353		0		0		9,916,353
Accrued interest receivable	63,721		63,721		0		16,233		47,488
Financial liabilities
Deposits	12,701,177		12,670,747		0		12,670,747		0
Short-term borrowings	1,287,156		1,287,156		1,287,156		0		0
Long-term debt	346,672		348,041		0		348,041		0
Accrued interest payable	11,150		11,150		3,835		7,315		0

The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis.

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Investment securities. Investment securities classified as available-for-sale are recorded at fair value on a recurring basis.  Fair value measurement is based upon quoted market prices, when available (Level 1).  If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar investment securities.  First Financial compiles prices from various sources who may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2).  Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for the specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities.  Any investment securities not valued based upon the methods previously described are considered Level 3.

First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance.  First Financial’s pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services.  Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities.  First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings.  The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager.

Loans held for sale. The fair value of the Company’s residential mortgage loans held for sale is determined on a recurring basis based on quoted prices for similar loans in active markets, and therefore, is classified as Level 2 the fair value hierarchy.

Derivatives. The fair values of derivative instruments are based primarily on a net present value calculation of the cash flows related to the interest rate swaps and foreign exchange contracts at the reporting date, using primarily observable market inputs such as interest rate yield curves which represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes an internally-developed model to value the credit risk component of derivative assets and liabilities, which is recorded as an adjustment to the fair value of the derivative asset or liability on the reporting date. Derivative instruments are classified as Level 2 in the fair value hierarchy.

Collateral dependent loans. Collateral dependent loans carried at fair value have been partially charged-off or receive specific allocations of the allowance for credit losses. For collateral dependent loans, fair value is generally based on real estate appraisals, a calculation of enterprise value or a valuation of business assets including equipment, inventory and accounts receivable. These loans had a principal amount of $9.7 million and $11.9 million at March 31, 2023 and December 31, 2022, respectively, with a valuation allowance of $4.0 million and $3.7 million at March 31, 2023 and December 31, 2022, respectively.

The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed third-party appraiser (Level 3). These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Collateral dependent loans are evaluated on a quarterly basis for additional write-downs and are adjusted accordingly.

Enterprise value is defined as imputed value for the entire underlying business. To determine an appropriate range of enterprise value, FFB relies on a standardized set of valuation methodologies that take into account future projected cash flows, market based multiples as well as asset values. Valuations involve both quantitative and qualitative considerations and professional judgments concerning differences in financial and operating characteristics in addition to other factors that may impact values over time (Level 3).

The value of business equipment is based on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements.  Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3).  

The fair value of collateral dependent loans is measured at fair value on a nonrecurring basis.  Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income.

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OREO. Assets acquired through loan foreclosure are recorded at fair value less costs to sell, with any difference between the fair value of the property and the carrying value of the loan recorded as a charge-off establishing a new cost basis. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in noninterest expense. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value differs from the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. The Company classifies OREO in level 3 of the fair value hierarchy.

Operating leases. First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable and therefore, the carrying value of Operating leases is re-measured at fair value on a nonrecurring basis. When evaluating whether an individual asset is impaired, First Financial considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific asset under review. First Financial determines whether the carrying values of certain operating leases are not recoverable and as a result, records an impairment loss equal to the amount by which the carrying value of the assets exceeds the fair value. The fair value amounts are generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy.

The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows:

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
March 31, 2023
Assets
Investment securities available-for-sale	$	33,421	$	3,316,713	$	34,815	$	3,384,949
Loans held for sale	0		9,280		0		9,280
Interest rate derivative contracts	0		124,765		0		124,765
Foreign exchange derivative contracts	0		177,211		0		177,211
Total	$	33,421	$	3,627,969	$	34,815	$	3,696,205
Liabilities
Interest rate derivative contracts	$	0	$	124,795	$	0	$	124,795
Foreign exchange derivative contracts	0		177,211		0		177,211
Total	$	0	$	302,006	$	0	$	302,006

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2022
Assets
Investment securities available-for-sale	$	32,696	$	3,341,095	$	35,857	$	3,409,648
Loans held for sale	0		7,918		0		7,918
Interest rate derivative contracts	0		152,846		0		152,846
Foreign exchange derivative contracts	0		204,882		0		204,882
Total	$	32,696	$	3,706,741	$	35,857	$	3,775,294
Liabilities
Interest rate derivative contracts	$	0	$	153,119	$	0	$	153,119
Foreign exchange derivative contracts	$	0	$	204,882	$	0	$	204,882
Total	$	0	$	358,001	$	0	$	358,001

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The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2023 and March 31, 2022.

	Three months ended
	March 31,
(dollars in thousands)	2023		2022
Beginning balance	$	35,857	$	38,181
Accretion (amortization)	(25)		(13)
Increase (decrease) in fair value	12		13
Settlements	(1,029)		(720)
Ending balance	$	34,815	$	37,461

Certain financial assets and liabilities are measured at fair value on a nonrecurring basis.  Adjustments to the fair value of these assets usually result from the application of fair value accounting or write-downs of individual assets.  The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis.

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Collateral dependent loans
Commercial	$	0	$	0	$	5,760
Commercial real estate	0		0		0
OREO	0		0		0
Operating leases	0		0		0

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2022
Assets
Collateral dependent loans
Commercial	$	0	$	0	$	4,240
Commercial real estate	0		0		4,015
OREO	0		0		0
Operating leases	0		0		0

Fair value option. First Financial may elect to report most financial instruments and certain other items at fair value on an instrument-by instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made.

The Company elected the fair value option for residential mortgage loans held for sale. This election allows for a more effective offset of the changes in fair values of the loans held for sale and the derivative financial instruments used to financially hedge them without having to apply complex hedge accounting requirements. The fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets.

The aggregate fair value of the Company’s residential mortgage loans held for sale as of March 31, 2023 and December 31, 2022 was $9.3 million and $7.9 million, respectively. The aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of March 31, 2023 and December 31, 2022 was $8.4 million and $7.5 million, respectively. The resulting difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was $0.9 million and $0.4 million as of March 31, 2023 and December 31, 2022, respectively.

Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of Net gain from sales of loans in the Company’s Consolidated Statements of Income. The change in fair value of the Company’s residential

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mortgage loans held for sale resulted in a gain of $0.5 million for the three months ended March 31, 2023 and a net loss of $1.3 million for the three months ended March 31, 2022.

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ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

FIRST FINANCIAL BANCORP. AND SUBSIDIARIES

(Unaudited)

All significant reclassifications of prior period amounts, if applicable, have been made to conform to the current period’s presentation and had no effect on the Company's previously reported net income or financial condition.

In November 2020, the SEC adopted amendments to Regulation S-K to eliminate certain disclosure requirements and to revise several others to make the disclosures provided in the MD&A more useful for investors. When providing a discussion and analysis of interim period results, the amendments provide a registrant with the option to discuss its interim results by comparing its most recent quarter to the immediately preceding quarter rather than to the same quarter of the prior year. First Financial elected to exercise this option as it believes that the comparison of current quarter results to a linked quarter, rather than the prior year comparable quarter, more accurately reflects management's perspective of the organization and its results.

EXECUTIVE SUMMARY

First Financial Bancorp. is a $16.9 billion financial holding company headquartered in Cincinnati, Ohio, which operates through its subsidiaries. These subsidiaries include First Financial Bank, an Ohio-chartered commercial bank, which operated 130 full service banking centers as of March 31, 2023. First Financial provides banking and financial services products to business and retail clients through its six lines of business: Commercial, Retail Banking, Mortgage Banking, Wealth Management, Investment Commercial Real Estate and Commercial Finance. The Commercial Finance business lends to targeted industry verticals on a nationwide basis. Operating under the brand of Yellow Cardinal Advisory Group, Wealth Management had $3.3 billion in assets under management as of March 31, 2023 and provides the following services: financial planning, investment management, trust administration, estate settlement, brokerage services and retirement planning.

Additional information about First Financial, including its products, services and banking locations, is available on the

Company's website at www.bankatfirst.com.

The major components of First Financial’s operating results for the current and prior year are discussed in greater detail in the sections that follow.

MARKET STRATEGY

First Financial develops a competitive advantage by utilizing a local market focus to provide superior service and build long-term relationships with clients while helping them achieve greater financial success. First Financial serves a combination of metropolitan and community markets in Ohio, Indiana, Kentucky and Illinois through its full-service banking centers. First Financial also has certain lending platforms that extend beyond the geographic banking center footprint to provide financing to franchise owners and clients within the financial services industry as well as equipment lease financing to commercial businesses. First Financial's investment in community markets is an important part of the Bank's core funding base and has historically provided stable, low-cost funding sources. 

First Financial’s market selection process includes multiple factors, but markets are primarily chosen for their potential for long-term profitability and growth.  First Financial intends to concentrate plans for future growth and capital investment within its current markets, and will continue to evaluate additional growth opportunities in metropolitan markets located within, or in close proximity to, the Company's current geographic footprint.  Additionally, First Financial may assess strategic acquisitions that provide product line extensions or additional industry verticals that complement its existing business and diversify its product suite and revenue streams.

BUSINESS COMBINATIONS

On January 3, 2023, First Financial purchased the assets of Brady Ware Capital, LLC (Brady Ware). Located in Miamisburg, Ohio, Brady Ware was an advisory firm for mergers and acquisitions, focusing primarily on business succession planning.

First Financial acquired all of the assets of Brady Ware for aggregate consideration of approximately $4.3 million, consisting of $3.4 million in cash and a $0.9 million earn-out payment. Pursuant to the purchase agreement, the earn-out payments are payable annually for each of the five years following the closing of the acquisition, contingent upon the results of Brady Ware's operations.

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The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date in accordance with FASB ASC Topic 805, Business Combinations. Goodwill arising from the Brady Ware acquisition was $4.2 million and reflects the business’s growth potential and the expectation that the acquisition will provide additional revenue growth with the expansion of the Bank's advisory business. These fair value measurements are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values became available. 

NON-GAAP FINANCIAL MEASURES

The Company utilizes certain non-GAAP financial measures, which we believe provide useful insight to the reader of the Consolidated Financial Statements. These non-GAAP measures should be supplemental to primary GAAP measures and should not be read in isolation or relied upon as a substitute for the primary GAAP measures.

For analytical purposes, net interest income is presented in the following table adjusted to a tax equivalent basis assuming a 21% marginal tax rate. Net interest income is disclosed on a tax equivalent basis to consistently reflect income from tax-exempt assets, such as municipal loans and investments, in order to facilitate a comparison between taxable and tax-exempt amounts.  Management believes it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis as these measures provide useful information to make peer comparisons.

	Three months ended
(Dollars in thousands)	March 31, 2023			December 31, 2022			March 31, 2022
Net interest income	$	159,318		$	157,896		$	106,345
Tax equivalent adjustment	1,424			1,553			1,467
Net interest income - tax equivalent	$	160,742		$	159,449		$	107,812
Average earning assets	$	14,326,645		$	14,136,477		$	13,848,596
Net interest margin (1)	4.51		%	4.43		%	3.11		%
Net interest margin (FTE) (1)	4.55		%	4.47		%	3.16		%

(1) Calculated using annualized net interest income divided by average earning assets.

In addition to capital ratios defined by the U.S. banking agencies, First Financial considers various measures when evaluating capital utilization and adequacy, including the return on average tangible shareholder's equity and the tangible common equity ratio. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes and may be useful for evaluating the performance of a business as the ratios calculate the capital and return available to common shareholders without the impact of intangible assets and their related amortization.. As GAAP does not include capital ratio measures, the Company believes there are no comparable GAAP financial measures to these ratios. These ratios are not formally defined by GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures.

First Financial encourages readers to consider its Consolidated Financial Statements in their entirety and not to rely on any single financial measure.

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The following table reconciles non-GAAP capital ratios to GAAP:

	Three months ended
(Dollars in thousands)	March 31, 2023			December 31, 2022			March 31, 2022
Net income (a)	$	70,403		$	69,086		$	41,301
Average total shareholders' equity	2,082,210			2,009,564			2,225,495
Less:
Goodwill	(1,005,713)			(998,575)			(1,000,238)
Other intangibles	(92,587)			(95,256)			(103,033)
Average tangible equity (b)	983,910			915,733			1,122,224
Total shareholders' equity	2,121,496			2,041,373			2,137,445
Less:
Goodwill	(1,005,738)			(1,001,507)			(999,959)
Other intangibles	(91,169)			(93,919)			(101,673)
Ending tangible equity (c)	1,024,589			945,947			1,035,813
Total assets	16,933,884			17,003,316			16,009,150
Less:
Goodwill	(1,005,738)			(1,001,507)			(999,959)
Other intangibles	(91,169)			(93,919)			(101,673)
Ending tangible assets (d)	15,836,977			15,907,890			14,907,518
Risk-weighted assets (e)	13,025,552			12,923,233			11,705,447
Total average assets	16,942,999			16,767,598			16,184,919
Less:
Goodwill	(1,005,713)			(998,575)			(1,000,238)
Other intangibles	(92,587)			(95,256)			(103,033)
Average tangible assets (f)	15,844,699			15,673,767			15,081,648
Ending common shares outstanding (g)	95,190,406			94,891,099			94,451,496
Ratios
Return on average tangible shareholders' equity (a)/(b)	29.02		%	29.93		%	14.93		%
Ending tangible shareholders' equity as a percent of:
Ending tangible assets (c)/(d)	6.47		%	5.95		%	6.95		%
Risk-weighted assets (c)/(e)	7.87		%	7.32		%	8.85		%
Average tangible shareholders' equity to average tangible assets (b)/(f)	6.21		%	5.84		%	7.44		%
Tangible book value per share (c)/(g)	$	10.76		$	9.97		$	10.97

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OVERVIEW OF OPERATIONS

Linked quarter comparison: First quarter 2023 net income was $70.4 million and earnings per diluted common share were $0.74. This compares with fourth quarter 2022 net income of $69.1 million and earnings per diluted common share of $0.73. Return on average assets was 1.69% for the first quarter of 2023 compared to 1.63% for the fourth quarter of 2022. Return on average shareholders’ equity was 13.71% for the first quarter of 2023 compared to 13.64% for the fourth quarter of 2022.

Year-to-date comparison: For the three months ended March 31, 2023, net income was $70.4 million and earnings per diluted common share were $0.74. This compares with net income of $41.3 million and earnings per diluted common share of $0.44 for the first three months of 2022. Return on average assets for the three months ended March 31, 2023 was 1.69% compared to 1.03% for the same period in 2022, and return on average shareholders' equity was 13.71% and 7.53% for the first three months of 2023 and 2022, respectively.

(Dollars in thousands)	March 31, 2023		December 31, 2022
Balance Sheet - End of Period
Total assets	$	16,933,884	$	17,003,316
Loans and leases	10,433,385		10,298,971
Investment securities	3,611,625		3,636,829
Deposits	12,674,684		12,701,177
Shareholders' equity	2,121,496		2,041,373

	Three months ended
(Dollars in thousands, except per share data)	March 31, 2023			December 31, 2022			March 31, 2022
Earnings
Net interest income	$	159,318		$	157,896		$	106,345
Net income	70,403			69,086			41,301
Per Share
Net income per common share-basic	$	0.75		$	0.74		$	0.44
Net income per common share-diluted	0.74			0.73			0.44
Cash dividends declared per common share	0.23			0.23			0.23
Book value per common share (end of period)	22.29			21.51			22.63
Tangible book value per common share (end of period) (1)	10.76			9.97			10.97
Market price (end of period)	21.77			24.23			23.05
Ratios
Return on average assets	1.69		%	1.63		%	1.03		%
Return on average shareholders' equity	13.71		%	13.64		%	7.53		%
Return on average tangible shareholders' equity (1)	29.02		%	29.93		%	14.93		%
Net interest margin	4.51		%	4.43		%	3.11		%
Net interest margin (FTE) (1)	4.55		%	4.47		%	3.16		%

(1) Non-GAAP financial measure. For details on the calculation of this non-GAAP financial measure, see "Non-GAAP Financial Measures" section.

A discussion of First Financial's operating results for the three month period ended March 31, 2023 follows.

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NET INTEREST INCOME

First Financial’s principal source of income is net interest income, which is the excess of interest received from earning assets, including loan-related fees and purchase accounting accretion, minus interest paid on interest-bearing liabilities. The amount of net interest income is determined by the volume and mix of earning assets, the rates earned on such assets and the volume, mix and rates paid for the deposits and borrowed money that support the earning assets. Earning assets consist of interest-bearing loans to customers as well as marketable investment securities.

	Three months ended
(Dollars in thousands)	March 31, 2023		December 31, 2022		March 31, 2022
Interest income
Loans and leases, including fees	$	169,706	$	152,299	$	87,182
Investment securities
Taxable	31,867		30,248		22,096
Tax-exempt	3,464		4,105		4,431
Total interest on investment securities	35,331		34,353		26,527
Other earning assets	3,544		3,262		120
Total interest income	208,581		189,914		113,829
Interest expense
Deposits	31,456		16,168		2,623
Short-term borrowings	12,950		11,091		317
Long-term borrowings	4,857		4,759		4,544
Total interest expense	49,263		32,018		7,484
Net interest income	$	159,318	$	157,896	$	106,345

Linked quarter comparison: Net interest income for the first quarter of 2023 was $159.3 million, an increase of $1.4 million, or 0.9%, from the fourth quarter of 2022. Net interest margin on a fully tax equivalent basis for the quarter ended March 31, 2023 was 4.55%, an increase of 8 bp when compared to 4.47% in the fourth quarter of 2022. The increase in net interest margin was driven by growth in interest income outpacing an increase in interest expense during the period as an asset sensitive balance sheet repriced quicker in a rising rate environment than funding costs.

Interest income increased $18.7 million, or 9.8%, in the first quarter of 2023 when compared to the fourth quarter of 2022 largely due to an 62 bp increase in loan yields, which were driven by an increase in interest rates. In addition, investment yields increased 26 bps to 3.94% due to the repricing of floating rate investments and slower prepayments on mortgage-backed securities. Average earning assets of $14.3 billion in the first quarter of 2023 increased $190.2 million, or 1.3%, compared to the fourth quarter of 2022 as loan growth during the period outpaced a decline in investment securities.

Interest expense of $49.3 million increased $17.2 million, or 53.9%, in the first quarter of 2023 when compared to the fourth quarter of 2022 largely due to higher interest rates coupled with an increase in time deposits. The cost of interest bearing deposits increased 68 bps to 1.44% in the first quarter of 2023, while average deposits increased $179.8 million, or 1.4%, to $12.8 billion. Average borrowed funds decreased $54.8 million, or 3.7%, as the Company utilized brokered CDs instead of borrowings to fund loan growth.

Year-to-date comparison: Net interest income for the first three months of 2023 increased $53.0 million, or 49.8%, compared to the same period of 2022. Net interest margin on a fully tax equivalent basis was 4.55% for the three months ended March 31, 2023, an increase of 139 bps when compared to the same period in 2022.

Interest income for the three months ended March 31, 2023 grew $94.8 million, or 83.2%, to $208.6 million compared to $113.8 million for the same period of the prior year due to higher interest rates. Average earning assets of $14.3 billion for the first three months of 2023 increased $478.0 million, or 3.5%, when compared to the same period of 2022.

Interest expense for the three months ended March 31, 2023 was $49.3 million compared to $7.5 million for the same period in the prior year. The increase was driven by a $233.4 million, or 2.7%, increase in average interest bearing deposits coupled with a 132 bp increase in rates on those deposits. Additionally, average borrowed funds increased $712.6 million from first quarter in the prior year, while the cost of those borrowed funds increased 230 bps due to higher interest rates.

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CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS

	Quarterly Averages
	March 31, 2023						December 31, 2022						March 31, 2022
(Dollars in thousands)	Balance		Interest		Yield		Balance		Interest		Yield		Balance		Interest		Yield
Earning assets
Investments
Investment securities	$	3,635,317	$	35,331	3.94	%	$	3,705,304	$	34,353	3.68	%	$	4,308,059	$	26,527	2.50	%
Interest-bearing deposits with other banks	318,026		3,544		4.52	%	372,054		3,262		3.48	%	273,763		120		0.18	%
Gross loans and leases (1)	10,373,302		169,706		6.63	%	10,059,119		152,299		6.01	%	9,266,774		87,182		3.82	%
Total earning assets	14,326,645		208,581		5.90	%	14,136,477		189,914		5.33	%	13,848,596		113,829		3.33	%
Nonearning assets
Allowance for credit losses	(136,419)						(127,541)						(129,601)
Cash and due from banks	218,724						218,216						241,271
Accrued interest and other assets	2,534,049						2,540,446						2,224,653
Total assets	$	16,942,999					$	16,767,598					$	16,184,919
Interest-bearing liabilities
Deposits
Interest-bearing demand	$	2,906,712	$	6,604	0.92	%	$	3,103,091	$	5,195	0.66	%	$	3,246,919	$	492	0.06	%
Savings	3,818,807		7,628		0.81	%	3,943,342		4,819		0.48	%	4,145,615		850		0.08	%
Time	2,131,707		17,224		3.28	%	1,360,681		6,154		1.79	%	1,231,266		1,281		0.42	%
Total interest-bearing deposits	8,857,226		31,456		1.44	%	8,407,114		16,168		0.76	%	8,623,800		2,623		0.12	%
Borrowed funds
Short-term borrowings	1,090,719		12,950		4.82	%	1,144,926		11,091		3.84	%	336,455		317		0.38	%
Long-term debt	343,619		4,857		5.73	%	344,162		4,759		5.49	%	385,240		4,544		4.78	%
Total borrowed funds	1,434,338		17,807		5.03	%	1,489,088		15,850		4.22	%	721,695		4,861		2.73	%
Total interest-bearing liabilities	10,291,564		49,263		1.94	%	9,896,202		32,018		1.28	%	9,345,495		7,484		0.32	%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits	3,954,915						4,225,192						4,160,175
Other liabilities	614,310						636,640						453,754
Shareholders' equity	2,082,210						2,009,564						2,225,495
Total liabilities and shareholders' equity	$	16,942,999					$	16,767,598					$	16,184,919
Net interest income	$	159,318					$	157,896					$	106,345
Net interest spread					3.96	%					4.05	%					3.01	%
Contribution of noninterest-bearing sources of funds					0.55	%					0.38	%					0.10	%
Net interest margin (2)					4.51	%					4.43	%					3.11	%
Tax equivalent adjustment					0.04	%					0.04	%					0.05	%
Net interest margin (fully tax equivalent) (2)					4.55	%					4.47	%					3.16	%

(1) Loans held for sale and nonaccrual loans are included in gross loans.

(2) The net interest margin exceeds the interest spread as noninterest-bearing funding sources, demand deposits, other liabilities and shareholders' equity also support earning assets.

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RATE/VOLUME ANALYSIS

The impact on net interest income from changes in interest rates and volume of interest-earning assets and interest-bearing liabilities is illustrated in the table below:

	Changes for the three months ended March 31, 2023						Changes for the three months ended March 31, 2023
	Linked quarter income variance						Comparable quarter income variance
(Dollars in thousands)	Rate		Volume		Total		Rate		Volume		Total
Earning assets
Investment securities	$	2,458	$	(1,480)	$	978	$	15,342	$	(6,538)	$	8,804
Interest-bearing deposits with other banks	976		(694)		282		2,931		493		3,424
Gross loans and leases (1)	15,924		1,483		17,407		64,421		18,103		82,524
Total earning assets	19,358		(691)		18,667		82,694		12,058		94,752
Interest-bearing liabilities
Total interest-bearing deposits	$	14,353	$	935	15,288		28,004		829		28,833
Borrowed funds
Short-term borrowings	2,805		(946)		1,859		3,678		8,955		12,633
Long-term debt	214		(116)		98		901		(588)		313
Total borrowed funds	3,019		(1,062)		1,957		4,579		8,367		12,946
Total interest-bearing liabilities	17,372		(127)		17,245		32,583		9,196		41,779
Net interest income	$	1,986	$	(564)	$	1,422	$	50,111	$	2,862	$	52,973

(1) Loans held for sale and nonaccrual loans are included in gross loans.

NONINTEREST INCOME

	Three months ended
(Dollars in thousands)	March 31, 2023		December 31, 2022		March 31, 2022
Noninterest income
Service charges on deposit accounts	$	6,514	$	6,406	$	7,729
Trust and wealth management fees	6,334		5,648		6,060
Bankcard income	3,592		3,736		3,337
Client derivative fees	1,005		1,822		803
Foreign exchange income	16,898		19,592		10,151
Leasing business income	13,664		11,124		6,076
Net gain from sales of loans	2,335		2,206		3,872
Net gain (loss) on sales/transfers of investment securities	(519)		(393)		3
Net gain (loss) on equity securities	640		1,315		(199)
Other	5,080		4,579		3,462
Total noninterest income	$	55,543	$	56,035	$	41,294

Linked quarter comparison: First quarter 2023 noninterest income was $55.5 million, decreasing $0.5 million, or 0.9%, compared to $56.0 million for the fourth quarter 2022. The slight decline from the linked quarter was primarily driven by declines in foreign exchange income and derivative fees, which were largely offset by increases in leasing business income and trust and wealth management fees. First quarter foreign exchange income decreased $2.7 million, or 13.8%, from a record high in the fourth quarter of 2022 while client derivative fees decreased $0.8 million, or 44.8% due to lower demand in the first quarter. Partially offsetting these declines, leasing business income increased $2.5 million, or 22.8%, as a result of strong production from Summit. Trust and wealth management fees increased $0.7 million, or 12.1%, due to market movements and higher asset under management balances.

Year-to-date comparison: Noninterest income of $55.5 million for the first three months of 2023 increased $14.2 million, or 34.5%, from $41.3 million in the comparable period of 2022. The increase was primarily attributed to higher leasing business income, foreign exchange income and other noninterest income, partially offset by lower gains on sales of loans and lower service charges on deposits. Leasing business income increased $7.6 million, or 124.9%, due to sustained growth in leasing balances since the acquisition of Summit in December of 2021. Foreign exchange income increased $6.7 million, or 66.5%, due to higher demand in 2023, while other noninterest income increased $1.6 million, or 46.7%, due to higher loan syndication fees and BOLI gains in the current year. Partially offsetting these increases, gains on sales of loans decreased $1.5 million, or

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39.7%, from the comparable period in 2022 as mortgage demand slowed with rising interest rates, while service charges on deposits were $1.2 million or 15.7% lower than the first quarter of the prior year as a result of program changes made during 2022.

NONINTEREST EXPENSE

	Three months ended
(Dollars in thousands)	March 31, 2023		December 31, 2022		March 31, 2022
Noninterest expenses
Salaries and employee benefits	$	72,254	$	73,621	$	63,947
Net occupancy	5,685		5,434		5,746
Furniture and equipment	3,317		3,234		3,567
Data processing	9,020		8,567		8,264
Marketing	2,160		2,198		1,700
Communication	634		690		666
Professional services	1,946		3,015		2,159
State intangible tax	985		974		1,131
FDIC assessments	2,826		2,173		1,459
Intangible assets amortization	2,600		2,573		2,914
Leasing business expense	7,938		6,061		3,869
Other	7,328		15,902		7,383
Total noninterest expenses	$	116,693	$	124,442	$	102,805

Linked quarter comparison: First quarter 2023 noninterest expense was $116.7 million, decreasing $7.7 million, or 6.2%, from $124.4 million for the fourth quarter 2022. This decline was primarily driven by lower other noninterest expenses, salaries and employee benefits and professional services, partially offset by higher leasing business expenses and FDIC assessments. Other noninterest expenses decreased $8.6 million, or 53.9%, from the linked quarter due to $6.4 million of tax credit investment write-downs and a $2.5 million contribution to the First Financial Foundation in the prior period. Salaries and benefits expenses decreased $1.4 million, or 1.9%, due to higher incentive compensation in the fourth quarter, which was tied to the Company's performance, while professional services decreased $1.1 million, or 35.5%, due to fewer legal and recruiting expenses in the current quarter. Partially offsetting these declines, leasing business expenses increased $1.9 million, or 31.0%, for the first quarter of 2023 as a result of continued growth in Summit lease originations, and FDIC assessments expense increased $0.7 million, or 30.1%, as the result of an increase in assessment rates.

Year-to-date comparison: Noninterest expenses of $116.7 million for the first three months of 2023 increased $13.9 million, or 13.5%, compared to the same period in 2022 primarily due to higher leasing business expense, salaries and benefits expenses FDIC assessments and data processing expenses. Leasing business expense increased $4.1 million, or 105.2%, as a result of the growth of the leasing portfolio. Salaries and benefits expenses increased $8.3 million, or 13.0%, due to annual salary increases, higher incentive compensation and an increase in restricted stock awards in the current period. FDIC assessments expense increased $1.4 million, or 93.7%, as the result of an increase in assessment rates, while data processing expenses increased $0.8 million, or 9.1%, largely due to contract termination costs as the Company continued to make strategic investments in technological enhancements.

INCOME TAXES

Linked quarter comparison: In the first quarter of 2023, First Financial recorded an income tax expense of $17.3 million on pre-tax income of $87.7 million, resulting in an effective tax rate of 19.7%. This compared to income tax expense of $10.4 million on pre-tax income of $79.5 million with an effective tax rate of 13.1% for the fourth quarter 2022. The increase in the effective tax rate in the current quarter was due to fewer tax credits realized during the current period.

Year-to-date comparison: For the first three months of 2023, income tax expense was $17.3 million on pre-tax income of $87.7 million, resulting in an effective tax rate of 19.7%. This compared to income tax expense of $9.3 million on pre-tax income of $50.6 million and an effective tax rate of 18.5% for the comparable period in 2022. The increase in the effective tax rate was primarily due to higher full year forecasted income during the first quarter of 2023.

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The Company's effective tax rate may fluctuate from period to period due to changes in tax jurisdictions, forecasted income, tax-enhanced assets and tax credit investments.

INVESTMENTS

First Financial's investment portfolio totaled $3.6 billion, or 21.3% of total assets, at March 31, 2023 and $3.6 billion, or 21.4% of total assets, at December 31, 2022.  AFS securities totaled $3.4 billion at both March 31, 2023 and December 31, 2022, while HTM securities totaled $83.1 million at March 31, 2023 and $84.0 million at December 31, 2022.

The effective duration of the investment portfolio decreased to 4.4 years at March 31, 2023 from 4.6 years as of December 31, 2022 as long term rates eased moderately during the first quarter of 2023.

The Company invests in certain securities whose realization is dependent on future principal and interest repayments, thus carrying credit risk. Prior to purchase, First Financial performs a detailed collateral and structural analysis on these securities and strategically invests in asset classes in which First Financial has expertise and experience, as well as a senior position in the capital structure. First Financial continuously monitors credit risk and geographic concentration risk in its evaluation of market opportunities that enhance the overall performance of the portfolio.

At March 31, 2023, the Company's Consolidated Financial Statements reflected a $295.4 million unrealized after-tax loss on debt securities and a $325.9 million unrealized after-tax loss as of December 31, 2022, both of which were included as a component of equity in accumulated other comprehensive income on the Consolidated Balance Sheets. This unrealized loss was driven by an increase in interest rates throughout 2022 and 2023.

The Company had net unrealized losses of $7.3 million and $7.5 million on its HTM securities as of March 31, 2023 and December 31, 2022, respectively. Similar to the unrealized losses on AFS securities, this unrealized loss was driven by higher interest rates in 2022 and 2023.

The Company had a $0.6 million unrealized gain on equity securities recorded in noninterest income for the three months ended March 31, 2023 compared to a $1.3 million unrealized gain for the three months ended December 31, 2022 and a $0.2 million loss for the first three months of 2022.

First Financial will continue to monitor loan demand and deposit activity, as well as balance sheet composition, capital sensitivity and the interest rate environment, when considering future investment strategies.

LOANS

Excluding loans held for sale, loan balances increased $134.4 million, or 1.3%, to $10.4 billion as of March 31, 2023 from $10.3 billion as of December 31, 2022. This increase was broad-based, with the largest growth being in residential real estate loans, which increased by $52.8 million, or 4.8%, to $1.1 billion. Additionally, C&I loans increased $39.0 million, or 1.1%, to $3.4 billion; lease financing increased by $37.8 million, or 16.0%, to $273.9 million; construction loans increased $13.9 million, or 2.7%, to $525.9 million; and commercial real estate loans increased $3.9 million, or 0.1%, to $4.1 billion. This growth was partially offset by a decrease in home equity of $9.1 million, or 1.2%, to $724.7 million and a $5.5 million, or 2.6% decrease in installment loans to $204.4 million.

First quarter 2023 average loans of $10.4 billion, excluding loans held for sale, increased $317.3 million, or 3.2%, from the fourth quarter 2022. The increase over the linked quarter included broad-based growth, highlighted by a $207.4 million, or 6.4% increase in the C&I portfolio and a $48.4 million, or 23.8%, increase in the leasing portfolio.

Through the first three months of 2023, average loans of $10.4 billion, excluding of loans held for sale, increased $1.1 billion, or 12.1%, from the comparable period of 2022. The increase from prior year reflected broad-based growth across most categories, including a $720.1 million, or 26.3%, increase in C&I, a $136.5 million, or 118.0%, increase in finance leases and an $80.4 million, or 64.0%, increase in installment loans.

COMMITMENTS AND CONTINGENCIES

Off-balance sheet arrangements include commitments to extend credit and financial guarantees.  Loan commitments are agreements to extend credit to a client absent any violation of any condition established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  First

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Financial had commitments outstanding to extend credit totaling $4.6 billion and $4.4 billion at March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, loan commitments with a fixed interest rate totaled $111.1 million while commitments with variable interest rates totaled $4.5 billion. Comparatively, as of December 31, 2022, loan commitments with a fixed interest rate totaled $126.3 million while commitments with variable interest rates totaled $4.2 billion. The fixed rate loan commitments have interest rates ranging from 0% to 21% and maturities ranging from less than 1 year to 31.0 years at March 31, 2023 and maturities ranging from less than one year to 31.6 years for December 31, 2022.

Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party.  First Financial’s letters of credit consist primarily of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services.  First Financial has issued letters of credit aggregating $32.2 million and $31.5 million at March 31, 2023 and December 31, 2022, respectively. Management conducts regular reviews of these instruments on an individual client basis.

First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $386.8 million and $379.3 million at March 31, 2023 and December 31, 2022, respectively.

First Financial is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in accrued interest and other assets in the Consolidated Balance Sheets, with any unfunded commitments included in accrued interest and other liabilities in the Consolidated Balance Sheets. As of March 31, 2023, First Financial expects to recover its remaining investments through the use of the tax credits that are generated by the investments. First Financial had unfunded commitments related to tax credit investments of $94.3 million and $84.3 million at March 31, 2023 and December 31, 2022, respectively.

Additionally, as part of the ordinary course of business, First Financial and its subsidiaries are parties to litigation, including claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, foreclosure interests that are incidental to our regular business activities and other matters. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of March 31, 2023. Reserves are established for these various matters of litigation, when appropriate, under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel. First Financial had no reserves related to litigation matters as of March 31, 2023 and December 31, 2022.

ASSET QUALITY AND ALLOWANCE FOR CREDIT LOSSES

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 a borrower's continued failure to adhere to contractual payment terms, 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.

As detailed in Note 2, the Company prospectively adopted ASU 2022-02 effective as of January 1, 2023. The new rule eliminated the accounting for TDRs while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties, defined by First Financial as Financial Difficulty Modifications (FDMs). Effective with the adoption of the standard, the Company prospectively will not include FDMs in the calculation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included TDRs, has not been adjusted.

Nonaccrual loans were $34.6 million, or 0.33% of total loans as of March 31, 2023, reflecting a $6.0 million, or 20.8%, increase from $28.6 million as of December 31, 2022. The increase in nonaccrual loans was primarily due to the downgrade of two relationships during the period. Nonperforming assets were $34.8 million, or 0.21% of total assets, at March 31, 2023 compared to $39.8 million, or 0.23% of total assets, at December 31, 2022.

Classified assets, which are defined by the Company as nonperforming assets plus performing loans internally rated substandard or worse, totaled $159.0 million as of March 31, 2023 compared to $128.1 million at December 31, 2022. Classified assets were 94 bps as a percentage of total assets at March 31, 2023, compared to 75 bps as of December 31, 2022. The first quarter increase in classified assets was due primarily to the downgrade of three relationships during the period.

Allowance for credit losses. The ACL is a reserve accumulated on the Consolidated Balance Sheets through the recognition of the provision for loan and lease losses. First Financial records provision expense in the Consolidated Statements of Income to

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maintain the ACL at a level considered sufficient to absorb expected credit losses for financial assets in the portfolio over their expected remaining lives with consideration given to current and forward-looking information.

The recorded adjustments to remove or reduce values of the loans and leases from the Consolidated Balance Sheets due to credit deterioration are referred to as charge-offs. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or from the liquidation of collateral. All loans charged-off are subject to continuous review and concerted efforts are made to maximize any recovery. In most cases, the borrower’s debt obligation is not canceled even though the balance may have been charged-off. Actual losses on loans and leases are posted against the ACL as a charge-off. Any subsequent collection of a previously charged-off loan is credited back to the ACL as a recovery.

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provide the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered therein. These adjustments are commonly known as the Qualitative Framework. The evaluation of these factors is the responsibility of the ACL committee, which is comprised of senior officers from the risk management, credit administration, finance and lending areas.

The total ACL, which includes both funded and unfunded reserves, was $161.8 million at March 31, 2023, which combined with de minimis net charge-offs to result in $10.5 million in total provision expense for the first quarter of 2023. This compared to a total allowance of $151.4 million as of December 31, 2022 and provision expense of $10.0 million during the fourth quarter of 2022.

The Company utilized the Moody's March baseline forecast as its R&S forecast in the quantitative model at March 31, 2023. For reasonableness, the Company also considered the impact to the model from alternative, more adverse economic forecasts, slower prepayment speeds and increased default rates. These alternative analyses were utilized to inform the Company's qualitative adjustments. Additionally, First Financial considered its credit exposure to certain industries believed to be at risk for future credit stress, such as franchise, hotel and investor commercial real estate lending, when making qualitative adjustments to the ACL model.

ACL - loans and leases. The ACL on loans and leases was $141.6 million as of March 31, 2023 and $133.0 million as of December 31, 2022. As a percentage of period-end loans, the ACL was 1.36% as of March 31, 2023 and 1.29% as of December 31, 2022. The increase in the ACL was driven by slower prepayment speeds, which effectively increased the duration of the loan portfolio, as well as loan growth and changes in economic forecasts.

The Company recorded insignificant net charge-offs in the first quarter 2023 compared to net recoveries of $0.2 million, or 1 bp of average loans and leases on an annualized basis, for the fourth quarter of 2022 and net charge-offs of $2.3 million, or 10 bps, through the first three months of 2022.

The ACL as a percentage of nonaccrual loans was 409.5% at March 31, 2023 and 464.6% at December 31, 2022. The decrease in this ratio was primarily driven by a $6.0 million, or 20.8%, increase in nonaccrual loans during the period. The ACL as a percentage of nonperforming loans was 409.5% as of March 31, 2023 and 335.9% as of December 31, 2022. The increase in this ratio was driven by the increase in the ACL as well as no longer including accruing TDRs in the ratio during the current period.

Provision expense is a product of the Company's ACL model combined with net charge-off activity during the period. During the first quarter of 2023, the Company recorded $8.6 million of provision expense for loans and leases compared to provision expense of $8.7 million during the fourth quarter of 2022 and provision recapture of $5.6 million for the first quarter of 2022.

ACL - unfunded commitments. The ACL on unfunded commitments was $20.2 million as of March 31, 2023 and $18.4 million as of December 31, 2022. First Financial recorded $1.8 million of provision expense for credit losses on unfunded commitments for the three months ended March 31, 2023, compared to $1.3 million of expense in the fourth quarter 2022. The increase in allowance on unfunded commitments at March 31, 2023 was related to a slowing of commercial prepayments, which resulted in a longer duration for the unfunded commitment portfolio. The Company recorded provision recapture of $0.2 million on unfunded commitments in the first quarter of 2022.

See Note 5 – Allowance for Credit Losses in the Notes to Consolidated Financial Statements for further discussion of First Financial's ACL.

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The table that follows includes the activity in the ACL for the quarterly periods presented.

	Three months ended
	2023		2022
(Dollars in thousands)	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
Allowance for credit loss activity
Balance at beginning of period	$132,977		$124,096		$117,885		$124,130		$131,992
Purchase accounting ACL for PCD	0		0		0		0		0
Provision for loan losses	8,644		8,689		7,898		(4,267)		(5,589)
Gross charge-offs
Commercial and industrial	730		334		1,947		773		2,845
Lease financing	13		0		13		8		131
Construction real estate	0		0		0		0		0
Commercial real estate	66		245		3		3,419		0
Residential real estate	0		79		119		4		22
Home equity	91		72		45		22		21
Installment	1,524		717		294		361		177
Credit card	217		212		237		212		246
Total gross charge-offs	2,641		1,659		2,658		4,799		3,442
Recoveries
Commercial and industrial	109		293		90		177		379
Lease financing	1		0		13		3		33
Construction real estate	0		0		0		0		0
Commercial real estate	2,238		1,327		561		2,194		222
Residential real estate	66		15		35		34		90
Home equity	80		88		185		360		265
Installment	54		68		29		47		21
Credit card	63		60		58		6		159
Total recoveries	2,611		1,851		971		2,821		1,169
Total net charge-offs	30		(192)		1,687		1,978		2,273
Ending allowance for credit losses	$141,591		$132,977		$124,096		$117,885		$124,130
Net charge-offs to average loans and leases (annualized)
Commercial and industrial	0.07	%	0.01	%	0.24	%	0.08	%	0.37	%
Lease financing	0.02	%	0.00	%	0.00	%	0.01	%	0.34	%
Construction real estate	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Commercial real estate	(0.22)	%	(0.11)	%	(0.06)	%	0.12	%	(0.02)	%
Residential real estate	(0.02)	%	0.02	%	0.03	%	(0.01)	%	(0.03)	%
Home equity	0.01	%	(0.01)	%	(0.08)	%	(0.19)	%	(0.14)	%
Installment	2.89	%	1.24	%	0.64	%	0.90	%	0.50	%
Credit card	1.12	%	1.07	%	1.29	%	1.50	%	0.67	%
Total net charge-offs	0.00	%	(0.01)	%	0.07	%	0.08	%	0.10	%

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	Three months ended
	2023		2022
(Dollars in thousands)	Mar. 31,		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
Nonperforming assets
Nonaccrual loans (1)	$34,580		$28,623		$36,327		$38,922		$45,454
Accruing troubled debt restructurings (2)	N/A		10,960		11,022		11,225		8,055
Total nonperforming loans(2)	34,580		39,583		47,349		50,147		53,509
Other real estate owned	191		191		22		22		72
Total nonperforming assets (2)	34,771		39,774		47,371		50,169		53,581
Accruing loans past due 90 days or more	159		857		139		142		180
Total underperforming assets (2)	$34,930		$40,631		$47,510		$50,311		$53,761
Total classified assets (2)	$158,984		$128,137		$114,956		$119,769		$106,839
Credit quality ratios
As a percent of period-end loans, net of unearned income:
Allowance for credit losses	1.36	%	1.29	%	1.27	%	1.25	%	1.34	%
Nonaccrual loans	0.33	%	0.28	%	0.37	%	0.41	%	0.49	%
Nonperforming loans	0.33	%	0.38	%	0.48	%	0.53	%	0.58	%
Allowance for credit losses to nonaccrual loans	409.46	%	464.58	%	341.61	%	302.87	%	273.09	%
Allowance for credit losses to nonperforming loans	409.46	%	335.94	%	262.09	%	235.08	%	231.98	%
(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million, $12.8 million, $9.5 million, and $16.2 million, as of December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.
(2) Upon adoption of ASU 2022-02 as of January 1, 2023, the TDR model was eliminated. FDMs are excluded from nonperforming and classified asset balances,

DEPOSITS AND FUNDING

Total deposits were $12.7 billion as of March 31, 2023, a decrease of $26.5 million, or 0.2%, from December 31, 2022. The decline in deposit balances included a $305.1 million, or 7.4%, decrease in noninterest bearing deposits, a $275.3 million, or 9.1%, decrease in interest bearing demand deposits, and an $81.7 million, or 2.1%, decrease in savings deposits. These declines were partially offset by a $635.7 million, or 37.4%, increase in time deposits.

Average deposits for the first quarter of 2023 were $12.8 billion, an increase of $179.8 million, or 1.4%, from $12.6 billion for the fourth quarter of 2022. This increase was a result of a $661.5 million increase in brokered CD's driving a $771.0 million, or 56.7%, increase in average time deposits. Partially offsetting this increase was a $270.3 million, or 6.4%, decrease in average noninterest bearing deposits, a $196.4 million, or 6.3%, decrease in average interest-bearing demand accounts and a $124.5 million, or 3.2%, decrease in average savings deposits. Personal deposit balances were relatively stable in the first quarter. Public funds and business deposits declined during the period, primarily related to a post-Covid decline from record high balances, as well as seasonal declines typically experienced in the first quarter. While there was some deposit attrition in reaction to the first quarter bank failures, this was not a major driver of the business deposit decline. The decline in public fund balances was mostly attributable to customers moving excess funds to higher yielding accounts outside of First Financial. In addition, public fund balances typically decline in the first quarter due to seasonal outflows.

Through the first three months of 2023, average deposits increased $28.2 million, or 0.2%, when compared to the same period of 2022.

Uninsured deposit balances were $4.9 billion, or 38.6% of total deposits, as of March 31, 2023. The Company reviews uninsured deposits for concentration risk, and typically considers this risk by excluding public funds and intercompany deposits to arrive at an adjusted uninsured deposit amount. As such, excluding public funds and intercompany accounts, adjusted uninsured deposits were $2.9 billion, or 22.8% of total deposits, at the end of the first quarter.

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First Financial maintains a diverse set of borrowing sources, including Fed Funds, the Fed discount window, brokered CDs, FHLB borrowings and deposit placement services. The Company believes that its borrowing capacity provides sufficient flexibility to respond to any event that would stress its deposit balances.

Borrowed funds were $1.6 billion as of both March 31, 2023 and December 31, 2022. Borrowings were relatively unchanged from year end as the Company primarily utilized brokered and retail CDs to satisfy its funding needs.

First Financial had short-term borrowings of $1.2 billion and $1.3 billion as of March 31, 2023 and December 31, 2022, respectively. Short-term borrowings with the FHLB were $1.1 billion at both March 31, 2023 and December 31, 2022. There were no federal funds purchased or repurchase agreements included in short-term borrowings at March 31, 2023 or December 31, 2022.

Long-term debt, which include subordinated notes and FRB/FHLB long-term advances, among other borrowing methods, was $342.6 million and $346.7 million at March 31, 2023 and December 31, 2022, respectively. Outstanding subordinated debt totaled $311.9 million as of March 31, 2023 and $311.7 million as of December 31, 2022.

First Financial had no FHLB long-term advances at March 31, 2023 or December 31, 2022. First Financial's total remaining borrowing capacity from the FHLB was $488.2 million as of March 31, 2023.

See Note 8 – Borrowings in the Notes to Consolidated Financial Statements for further discussion of First Financial's borrowed funds.

LIQUIDITY

Liquidity management is the process by which First Financial manages the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost. These funding commitments include withdrawals by depositors, credit commitments to borrowers, shareholder dividends, share repurchases, operating expenses and capital expenditures. Liquidity is derived primarily from deposit growth, principal and interest payments on loans and investment securities, maturing loans and investment securities, and access to wholesale funding sources.

First Financial’s most stable source of liability-funded liquidity for both long and short-term needs is deposit growth and retention of the core deposit base. In addition to core deposit funding, First Financial also utilizes a variety of other short and long-term funding sources, which include subordinated notes, longer-term advances from the FRB and FHLB and its short-term line of credit.

First Financial has a $40.0 million short-term credit facility with an unaffiliated bank that matures in December, 2023. This facility has a variable interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. First Financial had no outstanding balance on this short-term credit facility as of March 31, 2023 and December 31, 2022. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of March 31, 2023 and December 31, 2022. This credit facility also required First Financial to pledge as collateral the Bank's common stock where the lender is granted a security interest in this collateral.

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Both First Financial and the Bank received investment grade credit ratings from Kroll Bond Rating Agency, Inc, an independent rating agency. These credit ratings impact the cost and availability of financing to First Financial, and a downgrade to these credit ratings could affect First Financial's or the Bank’s ability to access the credit markets and potentially increase borrowing costs, negatively impacting financial condition and liquidity. Key factors in maintaining high credit ratings include consistent and diverse earnings, strong credit quality and capital ratios, diverse funding sources and disciplined liquidity monitoring procedures. The ratings of First Financial and the Bank at March 31, 2023 were as follows:

	First Financial Bancorp	First Financial Bank
Senior Unsecured Debt	BBB+	A-
Subordinated Debt	BBB	BBB+
Short-Term Debt	K2	K2
Deposit	N/A	A-
Short-Term Deposit	N/A	K2

For ease of borrowing execution, First Financial utilizes a blanket collateral agreement with the FHLB. First Financial pledged $6.2 billion of certain eligible residential, commercial and farm real estate loans, home equity lines of credit and government, agency, and CMBS securities as collateral for borrowings from the FHLB as of March 31, 2023.  

First Financial's principal source of asset-funded liquidity is marketable investment securities, particularly those of shorter maturities. The market value of investment securities classified as AFS totaled $3.4 billion at both March 31, 2023 and December 31, 2022, respectively.  Additionally, AFS securities were 97.6% of the total investment portfolio as of both March 31, 2023 and December 31, 2022. As of March 31, 2023, $1.6 billion of AFS securities were unpledged and there were $277.9 million of securities available to be sold at breakeven. Additionally, $676.3 million of available for sale securities have floating rates and could be sold with minimal losses at March 31, 2023.

HTM securities that are maturing within a short period of time can be an additional source of liquidity. As of both March 31, 2023 and December 31, 2022, the Company had no HTM securities maturing within one year. In total, First Financial expects $704.4 million of cash flows from its investment portfolio in the next 12 months.

Other sources of liquidity include cash and due from banks plus interest-bearing deposits with other banks. At March 31, 2023, these balances totaled $505.3 million, and First Financial had unused and available overnight wholesale funding sources of $3.6 billion, or 21.2% of total assets, to fund loan and deposit activities in addition to other general corporate requirements.

Certain restrictions exist regarding the Bank's ability to transfer funds to First Financial in the form of cash dividends, loans, other assets or advances and the approval of the Bank's primary federal regulator is required to pay dividends in excess of regulatory limitations.  Dividends paid to First Financial from the Bank totaled $40.0 million for the first three months of 2023.  As of March 31, 2023, the Bank had retained earnings of $832.9 million, of which $162.8 million was available for distribution to the Bancorp without prior regulatory approval. As an additional source of liquidity, First Financial had $94.9 million in cash at the parent company as of March 31, 2023.

Share repurchases also impact First Financial's liquidity. For further information regarding share repurchases, see the Capital section that follows.

Capital expenditures were $4.5 million and $3.2 million for the first three months of 2023 and 2022, respectively. Management believes that sufficient liquidity exists to fund its future capital expenditure commitments.

Management is not aware of any other events or regulatory requirements that, if implemented, are likely to have a material effect on First Financial’s liquidity.

CAPITAL

Risk-based capital. The Board of Governors of the Federal Reserve System approved Basel III in order to strengthen the regulatory capital framework for all banking organizations, subject to a phase-in period for certain provisions. Basel III established and defined quantitative measures to ensure capital adequacy. These measures require First Financial to maintain minimum amounts and ratios of Common equity Tier 1 capital, Total and Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets (Leverage ratio).

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Basel III includes a minimum ratio of Common equity Tier 1 capital to risk-weighted assets of 7.0% and includes a fully phased-in capital conservation buffer of 2.5% of risk-weighted assets. Further, the minimum ratio of Tier 1 capital to risk-weighted assets is 8.5% and all banks are subject to a 4.0% minimum leverage ratio, while the minimum required Total risk-based capital ratio is 10.5%. Failure to maintain the required Common equity Tier 1 capital will result in potential restrictions on a bank’s ability to pay dividends, repurchase stock and pay discretionary compensation to its employees.  The capital requirements also provide strict eligibility criteria for regulatory capital instruments and change the method for calculating risk-weighted assets in an effort to better identify riskier assets, such as highly volatile commercial real estate and nonaccrual loans.

First Financial's tier 1 capital increased 17 bps to 11.34% at March 31, 2023 compared to 11.17% at December 31, 2022, while the total capital ratio remained relatively stable at 13.66% at March 31, 2023 compared to 13.64% at December 31, 2022,. The leverage ratio increased to 9.03% at March 31, 2023 from 8.89% at December 31, 2022. The Company’s tangible common equity ratio increased to 6.47% at March 31, 2023 from 5.95% at December 31, 2022. The 52 bp increase in the tangible common equity ratio was driven by the Company's strong earnings during the period.

As of March 31, 2023, management believes that First Financial met all capital adequacy requirements to which it was subject.  The Company's most recent regulatory notifications categorized First Financial as "well-capitalized" under the regulatory framework for prompt corrective action. There have been no conditions or events since those notifications that management believes have changed the Company's categorization. Total regulatory capital exceeded the minimum requirement by $411.2 million on a consolidated basis at March 31, 2023. 

The following tables present the actual and required capital amounts and ratios as of March 31, 2023 and December 31, 2022 under the Basel III Capital Rules and include the minimum required capital levels based on the phase-in provisions of the Basel III Capital Rules. Capital levels required to be considered "well capitalized" are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

	Actual				Minimum capital required - Basel III				PCA requirement to be considered well capitalized
(Dollars in thousands)	Capital amount		Ratio		Capital amount		Ratio		Capital amount		Ratio
March 31, 2023
Common equity Tier 1 capital to risk-weighted assets
Consolidated	$	1,432,332	11.00	%	$	911,789	7.00	%	N/A		N/A
First Financial Bank	1,607,262		12.34	%	911,435		7.00	%	$	846,332	6.50	%
Tier 1 capital to risk-weighted assets
Consolidated	1,476,734		11.34	%	1,107,172		8.50	%	N/A		N/A
First Financial Bank	1,607,844		12.35	%	1,106,742		8.50	%	1,041,640		8.00	%
Total capital to risk-weighted assets
Consolidated	1,778,917		13.66	%	1,367,683		10.50	%	N/A		N/A
First Financial Bank	1,649,525		12.67	%	1,367,152		10.50	%	1,302,050		10.00	%
Leverage ratio
Consolidated	1,476,734		9.03	%	653,844		4.00	%	N/A		N/A
First Financial Bank	1,607,844		9.84	%	653,541		4.00	%	816,927		5.00	%

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	Actual				Minimum capital required - Basel III				PCA requirement to be considered well capitalized
(Dollars in thousands)	Capital amount		Ratio		Capital amount		Ratio		Capital amount		Ratio
December 31, 2022
Common equity tier 1 capital to risk-weighted assets
Consolidated	$	1,399,420	10.83	%	$	904,626	7.00	%	N/A		N/A
First Financial Bank	1,581,328		12.26	%	903,244		7.00	%	$	838,726	6.50	%
Tier 1 capital to risk-weighted assets
Consolidated	1,443,698		11.17	%	1,098,475		8.50	%	N/A		N/A
First Financial Bank	1,581,900		12.26	%	1,096,796		8.50	%	1,032,278		8.00	%
Total capital to risk-weighted assets
Consolidated	1,762,971		13.64	%	1,356,939		10.50	%	N/A		N/A
First Financial Bank	1,640,671		12.71	%	1,354,865		10.50	%	1,290,348		10.00	%
Leverage ratio
Consolidated	1,443,698		8.89	%	649,636		4.00	%	N/A		N/A
First Financial Bank	1,581,900		9.76	%	648,607		4.00	%	810,759		5.00	%

Shareholder dividends. First Financial paid a dividend of $0.23 per common share on March 15, 2023 to shareholders of record as of March 1, 2023. Additionally, First Financial's board of directors authorized a dividend of $0.23 per common share, payable on June 15, 2023 to shareholders of record as of June 1, 2023.

Share repurchases. Effective January 2022, First Financial's board of directors approved a stock repurchase plan (the 2022 Stock Repurchase Plan), replacing the 2020 Repurchase Plan which became effective in January 2021. The 2022 Stock Repurchase Plan continues for two years and authorized the purchase of up to 5,000,000 shares of the Company's common stock and will expire in December 2023. First Financial did not repurchase any shares under this plan in the first quarter of 2023 or 2022. Therefore, at March 31, 2023, all 5,000,000 common shares remained available for repurchase under the 2022 Stock Repurchase Plan.

Shareholders' equity. Total shareholders’ equity was $2.1 billion at March 31, 2023 and $2.0 billion at December 31, 2022.

For further detail, see the Consolidated Statements of Changes in Shareholders’ Equity.

ENTERPRISE RISK MANAGEMENT

First Financial manages risk through a structured ERM approach that routinely assesses the overall level of risk, identifies specific risks and evaluates specific actions to mitigate those risks. First Financial continues to enhance its risk management capabilities and has embedded risk awareness into the culture of the Company.  First Financial has identified the following types of risk that it monitors in its ERM framework: credit, market (composed of interest rate, liquidity, capital, foreign exchange and financial risk), operational, compliance, strategic, reputation, information technology, cyber and legal.

For a full discussion of these risks, see the Enterprise Risk Management section in Management's Discussion and Analysis in First Financial’s 2022 Annual Report on Form 10-K. The sections that follow provide additional discussion related to credit risk and market risk.

CREDIT RISK

Credit risk represents the risk of loss due to failure of a customer or counterparty to meet its financial obligations in accordance with contractual terms. First Financial manages credit risk through its underwriting process, periodically reviewing and approving its credit exposures using credit policies and guidelines approved by the board of directors.  

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MARKET RISK

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, foreign exchange rates and equity prices. The primary source of market risk for First Financial is interest rate risk and liquidity risk.

Interest rate risk is the risk to earnings and the value of the Company's equity arising from changes in market interest rates. Interest rate risk arises in the normal course of business to the extent that there is a divergence between the amount of interest-earning assets and the amount of interest-bearing liabilities that are prepaid, withdrawn, re-priced or mature in specified periods. First Financial seeks to achieve consistent growth in net interest income and equity while managing volatility from shifts in market interest rates.

First Financial monitors its interest rate risk position using income simulation models and EVE sensitivity analyses that capture both short-term and long-term interest rate risk exposure.  Income simulation involves forecasting NII under a variety of interest rate scenarios. EVE is calculated by discounting the cash flows for all balance sheet instruments under different interest-rate scenarios. First Financial uses EVE sensitivity analysis to understand the impact of changes in interest rates on long-term cash flows, income and capital.  For both NII and EVE modeling, First Financial leverages instantaneous parallel shocks to evaluate interest rate risk exposure across rising and falling rate scenarios. Additional scenarios evaluated include various non-parallel yield curve twists.

First Financial’s interest rate risk models are based on the contractual and assumed cash flows and repricing characteristics for the Company’s assets, liabilities and off-balance sheet exposure. A number of assumptions are also incorporated into the interest rate risk models, including prepayment behaviors and repricing spreads for assets in addition to attrition and repricing rates for liabilities. Assumptions are primarily derived from behavior studies of the Company’s historical client base and are continually refined. Modeling the sensitivity of NII and EVE to changes in market interest rates is highly dependent on the assumptions incorporated into the modeling process.

Non-maturity deposit modeling is particularly dependent on the assumption for repricing sensitivity known as a beta. Beta is the amount by which First Financial’s interest bearing non-maturity deposit rates will increase when short-term interest rates rise. The Company utilized a weighted average deposit beta of 34% in its interest rate risk modeling as of March 31, 2023. First Financial also includes an assumption for the migration of non-maturity deposit balances into CDs for all upward rate scenarios beginning with the +100 bps scenario, thereby increasing deposit costs and reducing asset sensitivity.

Presented below is the estimated impact on First Financial’s NII and EVE position as of March 31, 2023, assuming immediate, parallel shifts in interest rates:

	% Change from base case for  immediate parallel changes in rates
	-100 bps		+100 bps		+200 bps
NII-Year 1	(6.30)	%	4.27	%	7.70	%
NII-Year 2	(6.04)	%	3.80	%	6.83	%
EVE	(2.08)	%	1.60	%	3.30	%

“Risk-neutral” refers to the absence of a strong bias toward either asset or liability sensitivity. “Asset sensitivity” is when a company's interest-earning assets reprice more quickly or in greater quantities than interest-bearing liabilities. Conversely, “liability sensitivity” is when a company's interest-bearing liabilities reprice more quickly or in greater quantities than interest-earning assets. In a rising interest rate environment, asset sensitivity results in higher net interest income while liability sensitivity results in lower net interest income. In a declining interest rate environment, asset sensitivity results in lower net interest income while liability sensitivity results in higher net interest income.

The projected results for NII and EVE reflected an asset sensitive position, due to a strong funding mix of low cost transactional deposits supporting loans priced primarily off the short end of the rate curve. First Financial's total cost of deposits increased 49 bps in the quarter, and consequently, the down rate shock sensitivity declined. As deposit costs increase in the future, asset sensitivity is expected to moderate further. First Financial continues to manage its balance sheet with a bias toward asset sensitivity while simultaneously balancing the potential earnings impact of this strategy.

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First Financial continually evaluates the sensitivity of its interest rate risk position to modeling assumptions. The following table reflects First Financial’s estimated NII sensitivity profile as of March 31, 2023 assuming a 25% increase and a 25% reduction to the beta assumption on managed rate deposits:

	Beta sensitivity (% change from base)
	+100 BP				+200 BP
	Beta 25% lower		Beta 25% higher		Beta 25% lower		Beta 25% higher
NII-Year 1	5.00	%	3.55	%	8.40	%	7.01	%
NII-Year 2	4.50	%	3.10	%	7.51	%	6.16	%

See the Net Interest Income section of Management’s Discussion and Analysis for further discussion.

Liquidity risk is the potential that an entity will be unable to meet its obligations as they come due because of an inability to liquidate assets or obtain funding or that it cannot easily unwind or offset exposures without significantly lowering market prices because of inadequate market depth or market disruptions. Management focuses on maintaining and enhancing liquidity by maximizing collateral based liquidity availability. When managing liquidity risk, First Financial considers the trend and stability of deposits, the degree and utilization of short-term, volatile sources of funds, and reliance on borrowings or brokered deposits. Management identifies, measures, monitors and controls liquidity while seeking to maintain diversification of funding sources, both on- and off-balance-sheet.

The bank has continued to update liquidity risk management processes, such as refining the contingency funding plan, proactively meeting frequently, securing additional contingent borrowing capacity, and developing additional ad-hoc liquidity reporting to monitor funding inflows and outflows. Management closely monitors overall loan and deposit trends as the broader macroeconomic environment responds to changing monetary policy. For further discussion of the Company's liquidity, please see the Liquidity section within Management's Discussion and Analysis.

CRITICAL ACCOUNTING POLICIES

First Financial’s Consolidated Financial Statements are prepared based on the application of the Company's accounting policies.  These policies require the reliance on estimates and assumptions which are inherently subjective and may be susceptible to significant change.  Changes in underlying factors, assumptions or estimates could have a material impact on First Financial’s future financial condition and results of operations. In management’s opinion, certain accounting policies have a more significant impact than others on First Financial’s financial reporting.  For First Financial, these policies currently include accounting for the ACL - loans and leases, goodwill, pension and income taxes.  These accounting policies are discussed in detail in the Critical Accounting Policies section of Management’s Discussion and Analysis in First Financial’s 2022 Annual Report.  There were no changes to the accounting policies for the ACL, goodwill, pension or income taxes during the three months ended March 31, 2023.

ACCOUNTING AND REGULATORY MATTERS

Note 2 - Recently Adopted and Issued Accounting Standards in the Notes to Consolidated Financial Statements discusses new accounting standards adopted by First Financial in 2023 and 2022, as well as the expected impact of accounting standards issued but not yet adopted.  To the extent the adoption of new accounting standards materially affects financial condition, results of operations or liquidity, the impacts are discussed in the applicable Notes to the Consolidated Financial Statements and sections of Management’s Discussion and Analysis.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this report which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Examples of forward-looking statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements.

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As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual results to differ materially from those set forth in the forward-looking statements.  Forward-looking statements are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements.  Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without limitation:

•economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business;

•future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses;

•the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (iv) management’s ability to effectively execute its business plans;

•mergers and acquisitions, including costs or difficulties related to the integration of acquired companies;

•the possibility that any of the anticipated benefits of the Company’s acquisitions will not be realized or will not be realized within the expected time period;

•the effect of changes in accounting policies and practices;

•changes in consumer spending, borrowing and saving and changes in unemployment;

•changes in customers’ performance and creditworthiness;

•the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;  

•current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;

•the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products;

•our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

•financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

•the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;

•the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;

•a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;

•the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and

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•our ability to develop and execute effective business plans and strategies.

These and other risk factors are more fully described in First Financial's Annual Report on Form 10-K for the year ended December 31, 2022 under the section entitled “Item 1A. Risk Factors” and from time to time, in other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Actual results may differ materially from those expressed in or implied by any forward-looking statements. Except to the extent required by applicable law or regulation, First Financial undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information contained in “Item 2-Management’s Discussion and Analysis of Financial Condition and Results of Operations—Market Risk” of this report is incorporated herein by reference in response to this item.

ITEM 4.   CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under

Rule 13a-15 of the Securities Exchange Act of 1934, that are designed to cause the material information required to be disclosed by First Financial in the reports it files or submits under the Securities Exchange Act of 1934 to be recorded, processed, summarized, and reported to the extent applicable within the time periods required by the Securities and Exchange Commission’s rules and forms. In designing and evaluating the disclosure controls and procedures, management recognized that a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

As of the end of the period covered by this report, First Financial performed an evaluation under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rule 13a-15 of the Securities Exchange Act of 1934. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in First Financial's internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, First Financial's internal control over financial reporting.

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PART II-OTHER INFORMATION

Item 1.Legal Proceedings.

There have been no material changes to the disclosure in response to "Part I - Item 3. Legal Proceedings" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Item 1A.Risk Factors.

There are a number of factors that may adversely affect the Company's business, financial results, or stock price. See "Risk Factors" as disclosed in response to "Item 1A. to Part I - Risk Factors" of Form 10-K for the year ended December 31, 2022.

There have been no material changes from the risk factors previously disclosed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

On January 27, 2022, the Board announced that it authorized a stock repurchase plan that provided for the purchase of up to 5,000,000 shares of common stock of the Company (the 2022 Stock Repurchase Plan). The 2022 Stock Repurchase Plan became effective January 1, 2022, upon the expiration of the previously authorized stock repurchase plan, and expires December 31, 2023. The Company did not purchase any shares under the 2022 Stock Repurchase Plan in the first quarter of 2023.

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Item 6.         Exhibits

(a)	Exhibits:
Exhibit Number
3.1		Amended Articles of Incorporation of First Financial Bancorp (reflecting all amendments filed with the Ohio Secretary of State) [for purposes of SEC reporting compliance only - not filed with the Ohio Secretary of State] (filed as Exhibit 3.2 to the Form S-3 on July 31, 2014 and incorporated herein by reference) (File No. 333-197771).
3.2		Amended and Restated Regulations of First Financial Bancorp, amended as of July 28, 2015 (filed as Exhibit 3.1 to the Form 8-K filed on July 29, 2015 and incorporated herein by reference).
31.1		Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
31.2		Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
32.1		Certification of Periodic Financial Report by Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished herewith.
32.2		Certification of Periodic Financial Report by Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished herewith.
101.INS		XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. *
101.SCH		Inline XBRL Taxonomy Extension Schema. *
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase. *
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase. *
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase. *
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase. *
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). *

First Financial will furnish, without charge, to a security holder upon request a copy of the documents and will furnish any other Exhibit upon payment of reproduction costs.  Unless as otherwise noted, documents incorporated by reference involve File No. 001-34762.

*    As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections.

** Compensatory plan or arrangement

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		FIRST FINANCIAL BANCORP.
		(Registrant)
/s/ James M. Anderson		/s/ Scott T. Crawley
James M. Anderson		Scott T. Crawley
Executive Vice President and Chief Financial Officer		Senior Vice President and Controller
		(Principal Accounting Officer)
Date	5/5/2023	Date	5/5/2023

65

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Archie M. Brown, President and Chief Executive Officer of First Financial Bancorp., certify that:

1.I have reviewed this quarterly report on Form 10-Q of First Financial Bancorp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	5/5/2023	/s/ Archie M. Brown
		Archie M. Brown President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, James M. Anderson, Executive Vice President and Chief Financial Officer of First Financial Bancorp., certify that:

1.I have reviewed this quarterly report on Form 10-Q of First Financial Bancorp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	5/5/2023	/s/ James M. Anderson
		James M. Anderson Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PERIODIC FINANCIAL REPORT BY CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q for the quarterly period ended March 31, 2023, of First Financial Bancorp. (the “Company”), as filed with the Securities and Exchange Commission on May 5, 2023 (the “Report”), I, Archie M. Brown, President and Chief Executive Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Archie M. Brown

Archie M. Brown
President and Chief Executive Officer

May 5, 2023

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PERIODIC FINANCIAL REPORT BY CHIEF FINANCIAL

OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q for the quarterly period ended March 31, 2023, of First Financial Bancorp. (the “Company”), as filed with the Securities and Exchange Commission on May 5, 2023 (the “Report”), I, James M. Anderson, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James M. Anderson

James M. Anderson
Executive Vice President and Chief Financial Officer

May 5, 2023

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-34762
Entity Registrant Name	FIRST FINANCIAL BANCORP /OH/
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	31-1042001
Entity Address, Address Line One	255 East Fifth Street, Suite 800
Entity Address, City or Town	Cincinnati,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45202
City Area Code	877
Local Phone Number	322-9530
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		95,154,979
Entity Central Index Key	0000708955
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
NASDAQ/NGS (GLOBAL SELECT MARKET) [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Common stock, No par value
Trading Symbol	FFBC
Security Exchange Name	NASDAQ

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Gross loans and leases, excluding accrued interest	$ 10,433,385	$ 10,298,971
Less: Allowance for credit losses	(141,591)	(132,977)
Net loans and leases	10,291,794	10,165,994
ASSETS
Cash and due from banks	199,835	207,501
Interest-bearing deposits with other banks	305,465	388,182
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	3,384,949	3,409,648
Investment securities held-to-maturity (fair value $75,762 at March 31, 2023 and $76,485 at December 31, 2022)	83,070	84,021
Other investments	143,606	143,160
Loans held for sale	9,280	7,918
Premises and equipment	188,959	189,080
Operating leases	153,986	91,738
Goodwill	1,005,738	1,001,507
Other Finite-Lived Intangible Assets, Gross	91,169	93,919
Accrued interest and other assets	1,076,033	1,220,648
Total assets	16,933,884	17,003,316
Deposits
Interest-bearing	2,761,811	3,037,153
Savings	3,746,403	3,828,139
Time	2,336,368	1,700,705
Total interest-bearing deposits	8,844,582	8,565,997
Noninterest-bearing	3,830,102	4,135,180
Total deposits	12,674,684	12,701,177
FHLB short-term borrowings	1,089,400	1,130,000
Other Short-term Borrowings	128,160	157,156
Total short-term borrowings	1,217,560	1,287,156
Long-term debt	342,647	346,672
Total borrowed funds	1,560,207	1,633,828
Accrued interest and other liabilities	577,497	626,938
Total liabilities	14,812,388	14,961,943
SHAREHOLDERS' EQUITY
Authorized - 160,000,000 shares; Issued - 104,281,794 shares at both March 31, 2023 and December 31, 2022	1,629,428	1,634,605
Retained earnings	1,016,893	968,237
Accumulated other comprehensive loss	(328,059)	(358,663)
Treasury stock, at cost, 9,091,388 shares at March 31, 2023 and 9,390,695 shares at December 31, 2022	(196,766)	(202,806)
Total shareholders' equity	2,121,496	2,041,373
Total liabilities and shareholders' equity	$ 16,933,884	$ 17,003,316
Common Stock, Shares, Issued	104,281,794	104,281,794
Common Stock, Shares Authorized	160,000,000	160,000,000
Treasury Stock, Common, Shares	9,091,388	9,390,695
Commercial
Gross loans and leases, excluding accrued interest	$ 3,449,289	$ 3,410,272
Lease financing
Gross loans and leases, excluding accrued interest	273,898	236,124
Construction real estate
Gross loans and leases, excluding accrued interest	525,906	512,050
Commercial real estate
Gross loans and leases, excluding accrued interest	4,056,627	4,052,759
Residential real estate
Gross loans and leases, excluding accrued interest	1,145,069	1,092,265
Home equity
Gross loans and leases, excluding accrued interest	724,672	733,791
Installment
Gross loans and leases, excluding accrued interest	204,372	209,895
Credit card
Gross loans and leases, excluding accrued interest	$ 53,552	$ 51,815

XML

CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Debt Securities, Held-to-maturity, Fair Value	$ 75,762	$ 76,485
Debt Securities, Available-for-sale, Amortized Cost	$ 3,763,658	$ 3,827,418
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	160,000,000	160,000,000
Common Stock, Shares, Issued	104,281,794	104,281,794

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest income
Loans, including fees	$ 169,706	$ 87,182
Investment securities
Taxable	31,867	22,096
Tax-exempt	3,464	4,431
Total interest on investment securities	35,331	26,527
Other earning assets	3,544	120
Total interest income	208,581	113,829
Interest expense
Deposits	31,456	2,623
Short-term borrowings	12,950	317
Long-term borrowings	4,857	4,544
Total interest expense	49,263	7,484
Net interest income	159,318	106,345
Provision for Credit Losses-loans and leases	8,644	(5,589)
Provision for credit losses-unfunded commitments	1,835	(226)
Net interest income after provision for credit losses	148,839	112,160
Noninterest income
Service Charges on Deposit Accounts	6,514	7,729
Trust and wealth management fees	6,334	6,060
Bankcard income	3,592	3,337
Client derivative fees	1,005	803
Foreign exchange income	16,898	10,151
Operating Lease, Lease Income	13,664	6,076
Net gain from sales of loans	2,335	3,872
Net gain (loss) on sales of investment securities	(519)	3
Net gain (loss) on equity securities	640	(199)
Other	5,080	3,462
Total noninterest income	55,543	41,294
Noninterest expenses
Salaries and employee benefits	72,254	63,947
Net occupancy	5,685	5,746
Furniture and equipment	3,317	3,567
Data processing	9,020	8,264
Marketing	2,160	1,700
Communication	634	666
Professional services	1,946	2,159
State intangible tax	985	1,131
FDIC assessments	2,826	1,459
Intangible assets amortization	2,600	2,914
Amortization of operating leases	7,938	3,869
Other	7,328	7,383
Total noninterest expenses	116,693	102,805
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total	87,689	50,649
Income tax (benefit) expense	17,286	9,348
Net income	$ 70,403	$ 41,301
Earnings per common share
Basic	$ 0.75	$ 0.44
Diluted	$ 0.74	$ 0.44
Average common shares outstanding - basic	93,732,532	93,383,932
Average common shares outstanding - diluted	94,960,158	94,263,925

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 70,403	$ 41,301
Other comprehensive (loss) income, net of tax
Unrealized gain (loss) on debt securities arising during the period	30,485	(142,401)
Change in retirement obligation	115	346
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	4	11
Other comprehensive income (loss)	30,604	(142,044)
Comprehensive income (loss)	$ 101,007	$ (100,743)

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Retained earnings	Accumulated other comprehensive income (loss)	Treasury Stock, Common
Beginning Balances (in shares) at Dec. 31, 2021		104,281,794			(10,132,554)
Beginning Balances at Dec. 31, 2021	$ 2,258,942	$ 1,640,358	$ 837,473	$ (433)	$ (218,456)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	41,301		41,301
Other comprehensive income (loss)	(142,044)			(142,044)
Cash dividends declared :
Common stock at $0.23 per share in 2023 and $0.23 per share in 2022	(21,596)		(21,596)
Exercise of stock options, net of shares purchased (in shares)					15,660
Exercise of stock options, net of shares purchased	(177)	(160)			$ (337)
Restricted stock awards, net of forfeitures (in shares)					286,596
Restricted stock awards, net of forfeitures	(2,842)	(8,802)			$ 5,960
Share-based compensation expense	3,507	$ 3,507
Ending Balances (in shares) at Mar. 31, 2022		104,281,794			(9,830,298)
Ending Balances at Mar. 31, 2022	2,137,445	$ 1,634,903	857,178	(142,477)	$ (212,159)
Retained Earnings (Accumulated Deficit)	968,237
Beginning Balances (in shares) at Dec. 31, 2022		104,281,794			(9,390,695)
Beginning Balances at Dec. 31, 2022	2,041,373	$ 1,634,605	968,237	(358,663)	$ (202,806)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	70,403		70,403
Other comprehensive income (loss)	30,604			30,604
Cash dividends declared :
Common stock at $0.23 per share in 2023 and $0.23 per share in 2022	(21,747)		(21,747)
Exercise of stock options, net of shares purchased (in shares)					3,468
Exercise of stock options, net of shares purchased	(34)	(41)			$ (75)
Restricted stock awards, net of forfeitures (in shares)					295,839
Restricted stock awards, net of forfeitures	(3,787)	(9,752)			$ 5,965
Share-based compensation expense	4,616	$ 4,616
Ending Balances (in shares) at Mar. 31, 2023		104,281,794			(9,091,388)
Ending Balances at Mar. 31, 2023	2,121,496	$ 1,629,428	$ 1,016,893	$ (328,059)	$ (196,766)
Retained Earnings (Accumulated Deficit)	$ 1,016,893

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Common Stock, Dividends, Per Share, Declared	$ 0.23	$ 0.23

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income	$ 70,403	$ 41,301
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recapture of) credit losses	10,479	(5,815)
Depreciation and amortization	7,520	8,107
Stock-based compensation expense	4,616	3,507
Pension expense (income)	875	625
Net amortization (accretion) on investment securities	1,894	4,092
Net (gain) loss on sales of investment securities	519	(3)
Unrealized gain (loss) on equity securities	(640)	199
Originations of loans held for sale	(42,174)	(98,958)
Net gains from sales of loans held for sale	(2,335)	(3,872)
Proceeds from sales of loans held for sale	41,926	113,939
Deferred income taxes	(8,844)	334
Operating Lease, Right-of-Use Asset, Amortization Expense	1,914	1,899
Payments for operating leases	(1,970)	(1,942)
Decrease (increase) cash surrender value of life insurance	766	652
Decrease (increase) in interest receivable	(1,866)	1,846
(Decrease) increase in interest payable	18,746	164
Decrease (increase) in other assets	145,295	52,590
(Decrease) increase in other liabilities	(73,386)	26,454
Net cash provided by (used in) operating activities	172,206	143,815
Investing activities
Proceeds from Sale of Debt Securities, Available-for-sale	0	5,003
Proceeds from calls, paydowns and maturities of securities available-for-sale	89,066	232,267
Payments to Acquire Debt Securities, Available-for-sale	27,240	173,954
Proceeds from calls, paydowns and maturities of securities held-to-maturity	1,009	5,906
Payments to Acquire Other Investments	306	11,799
Proceeds from Maturities, Prepayments and Calls of Other Investments	0	8
Net decrease (increase) in interest-bearing deposits with other banks	82,717	(12,336)
Net decrease (increase) in loans and leases	(133,223)	49,580
Proceeds from disposal of other real estate owned	0	98
Purchases of premises and equipment	(4,493)	(3,181)
Net change in operating leases	(62,248)	(12,085)
Proceeds from Life Insurance Policy	627	3,316
Net cash provided by (used in) investing activities	(57,491)	82,823
Financing activities
Net (decrease) increase in total deposits	(26,493)	(53,046)
Net (decrease) increase in short-term borrowings	(69,596)	(111,203)
Payments of long-term debt	4,215	30,183
Cash dividends paid on common stock	(22,111)	(21,986)
Proceeds from exercise of stock options	34	177
Net cash provided by (used in) financing activities	(122,381)	(216,241)
Cash and due from banks:
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(7,666)	10,397
Cash and due from bank at beginning of period	207,501	220,031
Cash and due from bank at end of period	199,835	230,428
Supplemental Disclosures
Interest Paid	30,518	7,321
Income Taxes Paid	324	170
Supplemental schedule for investing activities
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Assets, Net Of Purchase Consideration	(3,290)	1,028
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	941	238
Goodwill	4,231	(790)
Cash consideration	$ (3,400)	$ 0

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Organization, Consolidation and Presentation of Financial Statements

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation. The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly-owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation.  Certain reclassifications of prior periods' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings.

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and accompanying notes necessary to constitute a complete set of financial statements required by GAAP and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.  Management believes these unaudited consolidated financial statements reflect all adjustments of a normal recurring nature which are necessary for a fair presentation of the results for the interim periods presented.  The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.  The Consolidated Balance Sheet as of December 31, 2022 has been derived from the audited financial statements in the Company’s 2022 Form 10-K.

Use of estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes.  Actual realized amounts could differ materially from these estimates.

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RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS

3 Months Ended

Mar. 31, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recently Adopted and Issued Accounting Standards Disclosure [Text Block]

ACCOUNTING STANDARDS RECENTLY ADOPTED OR ISSUED

Standards Adopted in 2023

In March, 2022, the FASB issued ASU 2022-02 - Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This standard eliminates the accounting guidance on TDRs for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for any entities that have adopted ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The adoption of this standard resulted in amended disclosures in the Company's Consolidated Financial Statements, but did not materially impact the Company's results of operations.

Standards Adopted in 2022

During the first quarter of 2022, the SEC issued SAB No. 121. This bulletin adds interpretive guidance on the accounting and disclosure of obligations to safeguard crypto assets held for platform users. This guidance was applicable no later than the financial statements covering the first interim or annual period ending after June 15, 2022. Management reviewed its business activities and determined SAB 121 was not impactful to the Company’s Consolidated Financial Statements as the Company did not safeguard crypto assets at the time of adoption or as of March 31, 2023.

Standards Issued But Not Yet Adopted

In March, 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, that is intended to improve the accounting and disclosures for investments in tax credit structures. The ASU is a ratification of the FASB’s EITF consensus that was issued in December, 2022. The ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.

The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and early adoption is permitted. First Financial is currently evaluating the impact of this update its Consolidated Financial Statements.

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INVESTMENTS

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

For the three months ended March 31, 2023, there were no sales of AFS securities. For the three months ended March 31, 2022, there were $5.0 million of sales of AFS securities with insignificant gross realized gains and gross realized losses.

The following is a summary of HTM and AFS investment securities as of March 31, 2023:

	Held-to-maturity								Available-for-sale
(Dollars in thousands)	Amortized cost		Unrecognized gain		Unrecognized loss		Fair value		Amortized cost		Unrealized gain		Unrealized loss		Fair value
U.S. Treasuries	$	0	$	0	$	0	$	0	$	37,319	$	0	$	(3,898)	$	33,421
Securities of U.S. government agencies and corporations	0		0		0		0		80,728		0		(12,963)		67,765
Mortgage-backed securities - residential	0		0		0		0		734,761		624		(86,142)		649,243
Mortgage-backed securities - commercial	34,659		0		(3,981)		30,678		669,015		0		(44,121)		624,894
Collateralized mortgage obligations	9,030		0		(684)		8,346		524,394		121		(59,400)		465,115
Obligations of state and other political subdivisions	8,131		172		(186)		8,117		828,948		1,355		(111,128)		719,175
Asset-backed securities	0		0		0		0		746,463		179		(51,567)		695,075
Other securities	31,250		0		(2,629)		28,621		142,030		0		(11,769)		130,261
Total	$	83,070	$	172	$	(7,480)	$	75,762	$	3,763,658	$	2,279	$	(380,988)	$	3,384,949

The following is a summary of HTM and AFS investment securities as of December 31, 2022:

	Held-to-maturity								Available-for-sale
(Dollars in thousands)	Amortized cost		Unrecognized gain		Unrecognized loss		Fair value		Amortized cost		Unrealized gain		Unrealized loss		Fair value
U.S. Treasuries	$	0	$	0	$	0	$	0	$	37,312	$	0	$	(4,616)	$	32,696
Securities of U.S. government agencies and corporations	0		0		0		0		80,382		0		(13,914)		66,468
Mortgage-backed securities - residential	0		0		0		0		747,478		47		(97,462)		650,063
Mortgage-backed securities - commercial	35,363		0		(4,114)		31,249		676,934		2		(47,374)		629,562
Collateralized mortgage obligations	9,280		0		(827)		8,453		538,970		181		(61,439)		477,712
Obligations of state and other political subdivisions	8,128		105		(201)		8,032		832,066		565		(124,168)		708,463
Asset-backed securities	0		0		0		0		772,261		39		(60,975)		711,325
Other securities	31,250		0		(2,499)		28,751		142,015		0		(8,656)		133,359
Total	$	84,021	$	105	$	(7,641)	$	76,485	$	3,827,418	$	834	$	(418,604)	$	3,409,648

The following table provides a summary of investment securities by contractual maturity as of March 31, 2023, except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments.

	Held-to-maturity				Available-for-sale
(Dollars in thousands)	Amortized cost		Fair value		Amortized cost		Fair value
By Contractual Maturity:
Due in one year or less	$	0	$	0	$	8,119	$	7,981
Due after one year through five years	2,607		2,720		99,178		93,713
Due after five years through ten years	34,951		32,381		293,272		258,231
Due after ten years	1,823		1,637		688,456		590,697
Mortgage-backed securities - residential	0		0		734,761		649,243
Mortgage-backed securities - commercial	34,659		30,678		669,015		624,894
Collateralized mortgage obligations	9,030		8,346		524,394		465,115
Asset-backed securities	0		0		746,463		695,075
Total	$	83,070	$	75,762	$	3,763,658	$	3,384,949

Unrealized gains and losses on debt securities available for sale are generally due to fluctuations in current market yields relative to the yields of the securities at their amortized cost. All AFS securities with unrealized losses are reviewed quarterly to determine if any impairment exists, requiring a write-down to fair value. For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale in an unrealized loss position that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis.

First Financial does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities prior to maturity or recovery of the recorded value. Additionally, based on the Company's credit assessment of AFS securities in an unrealized loss position, the Company recorded no reserves for the periods ended March 31, 2023 or December 31, 2022.

As of March 31, 2023, the Company's investment securities portfolio consisted of 1,072 securities, of which 856 were in an unrealized loss position. As of December 31, 2022, the Company's investment securities portfolio consisted of 1,251 securities, of which 891 were in an unrealized loss position.

Primarily all of First Financial’s HTM debt securities are issued by U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. The remainder of the Company's HTM securities are non-agency collateralized mortgage obligations and obligations of state and other political subdivisions which currently carry ratings no lower than A+. There were no HTM securities on nonaccrual status or past due at March 31, 2023 or December 31, 2022.

Management measures expected credit losses on HTM debt securities on a collective basis by security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company did not record an ACL for these securities as of March 31, 2023 or December 31, 2022.

The following tables provide the fair value and gross unrealized losses of AFS investment securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

	March 31, 2023
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	2,397	$	(34)	$	31,024	$	(3,864)	$	33,421	$	(3,898)
Securities of U.S. Government agencies and corporations	0		0		67,765		(12,963)		67,765		(12,963)
Mortgage-backed securities - residential	119,487		(3,998)		490,241		(82,144)		609,728		(86,142)
Mortgage-backed securities - commercial	84,064		(2,787)		540,830		(41,334)		624,894		(44,121)
Collateralized mortgage obligations	89,481		(3,484)		366,249		(55,916)		455,730		(59,400)
Obligations of state and other political subdivisions	65,220		(3,941)		537,923		(107,187)		603,143		(111,128)
Asset-backed securities	100,004		(2,838)		573,501		(48,729)		673,505		(51,567)
Other securities	48,558		(2,442)		81,569		(9,327)		130,127		(11,769)
Total	$	509,211	$	(19,524)	$	2,689,102	$	(361,464)	$	3,198,313	$	(380,988)

	December 31, 2022
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	2,383	$	(46)	$	30,313	$	(4,570)	$	32,696	$	(4,616)
Securities of U.S. Government agencies and corporations	0		0		66,468		(13,914)		66,468		(13,914)
Mortgage-backed securities - residential	195,972		(10,413)		443,415		(87,049)		639,387		(97,462)
Mortgage-backed securities - commercial	440,207		(18,823)		175,530		(28,551)		615,737		(47,374)
Collateralized mortgage obligations	199,138		(12,453)		269,242		(48,986)		468,380		(61,439)
Obligations of state and other political subdivisions	295,913		(31,196)		368,673		(92,972)		664,586		(124,168)
Asset-backed securities	250,946		(9,410)		422,090		(51,565)		673,036		(60,975)
Other securities	118,262		(6,865)		9,959		(1,791)		128,221		(8,656)
Total	$	1,502,821	$	(89,206)	$	1,785,690	$	(329,398)	$	3,288,511	$	(418,604)

The following tables provide the fair value and gross unrealized losses of HTM investment securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

	March 31, 2023
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	0	$	0	$	0	$	0	$	0	$	0
Securities of U.S. Government agencies and corporations	0		0		0		0		0		0
Mortgage-backed securities - residential	0		0		0		0		0		0
Mortgage-backed securities - commercial	0		0		30,678		(3,981)		30,678		(3,981)
Collateralized mortgage obligations	0		0		8,346		(684)		8,346		(684)
Obligations of state and other political subdivisions	0		0		1,637		(186)		1,637		(186)
Asset-backed securities	0		0		0		0		0		0
Other securities	0		0		28,621		(2,629)		28,621		(2,629)
Total	$	0	$	0	$	69,282	$	(7,480)	$	69,282	$	(7,480)

	December 31, 2022
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	0	$	0	$	0	$	0	$	0	$	0
Securities of U.S. Government agencies and corporations	0		0		0		0		0		0
Mortgage-backed securities - residential	0		0		0		0		0		0
Mortgage-backed securities - commercial	17,656		(2,197)		13,593		(1,917)		31,249		(4,114)
Collateralized mortgage obligations	6,317		(606)		2,136		(221)		8,453		(827)
Obligations of state and other political subdivisions	5,160		(201)		0		0		5,160		(201)
Asset-backed securities	0		0		0		0		0		0
Other securities	7,082		(418)		21,670		(2,081)		28,752		(2,499)
Total	$	36,215	$	(3,422)	$	37,399	$	(4,219)	$	73,614	$	(7,641)

For further detail on the fair value of investment securities, see Note 17 – Fair Value Disclosures.

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LOANS AND LEASES

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

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 lending platforms that extend beyond the geographic banking center footprint to provide financing to franchise owners and clients within the financial services industry as well as equipment lease financing to commercial businesses.

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. In 2022 and all years prior that are presented below, consumer loans that had been modified in a TDR were classified as nonperforming.

The following table sets forth the Company's loan portfolio at March 31, 2023 by risk attribute and origination date as well as current period gross chargeoffs:

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	165,984	$	869,449	$	538,860	$	336,469	$	202,246	$	290,318	$	2,403,326	$	928,212	$	3,331,538
Special mention	198		13,090		4,198		3,901		10,194		2,217		33,798		13,855		47,653
Substandard	0		2,812		15,308		10,008		6,653		19,550		54,331		15,767		70,098
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	166,182	$	885,351	$	558,366	$	350,378	$	219,093	$	312,085	$	2,491,455	$	957,834	$	3,449,289
YTD Gross chargeoffs	$	0	$	22	$	6	$	0	$	19	$	683	$	730	$	0	$	730
Lease financing
Pass	$	29,221	$	187,765	$	23,349	$	11,891	$	10,465	$	6,925	$	269,616	$	0	$	269,616
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		4,107		0		0		158		17		4,282		0		4,282
Total	$	29,221	$	191,872	$	23,349	$	11,891	$	10,623	$	6,942	$	273,898	$	0	$	273,898
YTD Gross chargeoffs	$	0	$	0	$	13	$	0	$	0	$	0	$	13	$	0	$	13
Construction real estate
Pass	$	8,249	$	185,065	$	209,847	$	75,338	$	6,177	$	6,869	$	491,545	$	19,966	$	511,511
Special mention	0		0		14,395		0		0		0		14,395		0		14,395
Substandard	0		0		0		0		0		0		0		0		0
Total	$	8,249	$	185,065	$	224,242	$	75,338	$	6,177	$	6,869	$	505,940	$	19,966	$	525,906
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - investor
Pass	$	66,536	$	665,650	$	454,273	$	300,956	$	689,958	$	742,866	$	2,920,239	$	28,390	$	2,948,629
Special mention	0		0		13,060		17,134		9,229		51,437		90,860		295		91,155
Substandard	0		0		0		13,874		3,992		44,795		62,661		0		62,661
Doubtful	0		0		0		0		0		0		0		0		0

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Total	$	66,536	$	665,650	$	467,333	$	331,964	$	703,179	$	839,098	$	3,073,760	$	28,685	$	3,102,445
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - owner
Pass	$	27,575	$	167,222	$	148,857	$	159,185	$	99,257	$	308,493	$	910,589	$	9,974	$	920,563
Special mention	0		578		11		1,136		870		14,113		16,708		0		16,708
Substandard	0		0		456		842		5,054		9,909		16,261		650		16,911
Total	$	27,575	$	167,800	$	149,324	$	161,163	$	105,181	$	332,515	$	943,558	$	10,624	$	954,182
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	66	$	66	$	0	$	66
Residential real estate
Performing	$	65,711	$	336,483	$	272,688	$	201,737	$	108,797	$	145,008	$	1,130,424	$	0	$	1,130,424
Nonperforming	0		499		1,277		2,135		2,743		7,991		14,645		0		14,645
Total	$	65,711	$	336,982	$	273,965	$	203,872	$	111,540	$	152,999	$	1,145,069	$	0	$	1,145,069
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Home equity
Performing	$	4,421	$	25,913	$	32,296	$	37,089	$	11,365	$	30,299	$	141,383	$	578,148	$	719,531
Nonperforming	0		5		128		197		0		503		833		4,308		5,141
Total	$	4,421	$	25,918	$	32,424	$	37,286	$	11,365	$	30,802	$	142,216	$	582,456	$	724,672
YTD Gross chargeoffs	$	0	$	0	$	7	$	0	$	0	$	84	$	91	$	0	$	91
Installment
Performing	$	3,282	$	94,791	$	34,611	$	6,118	$	3,141	$	5,319	$	147,262	$	55,284	$	202,546
Nonperforming	1		666		590		30		71		32		1,390		436		1,826
Total	$	3,283	$	95,457	$	35,201	$	6,148	$	3,212	$	5,351	$	148,652	$	55,720	$	204,372
YTD Gross chargeoffs	$	0	$	710	$	769	$	33	$	0	$	12	$	1,524	$	0	$	1,524
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	53,393	$	53,393
Nonperforming	0		0		0		0		0		0		0		159		159
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	53,552	$	53,552
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	217	$	217

The following table sets forth the Company's loan portfolio at December 31, 2022 by risk attribute and origination date:

(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	879,836	$	561,890	$	348,123	$	209,758	$	112,282	$	206,656	$	2,318,545	$	971,080	$	3,289,625
Special mention	2,740		13,821		4,125		14,047		8,523		5,544		48,800		18,055		66,855
Substandard	2,335		5,176		11,886		8,016		3,331		13,812		44,556		9,236		53,792
Total	$	884,911	$	580,887	$	364,134	$	231,821	$	124,136	$	226,012	$	2,411,901	$	998,371	$	3,410,272
Lease financing
Pass	$	167,035	$	25,638	$	13,705	$	12,797	$	9,402	$	2,930	$	231,507	$	0	$	231,507
Special mention	0		0		70		0		0		0		70		0		70
Substandard	4,363		0		0		164		11		9		4,547		0		4,547
Total	$	171,398	$	25,638	$	13,775	$	12,961	$	9,413	$	2,939	$	236,124	$	0	$	236,124
Construction real estate
Pass	$	89,116	$	276,639	$	96,823	$	4,902	$	390	$	353	$	468,223	$	23,266	$	491,489
Special mention	0		14,395		0		0		6,166		0		20,561		0		20,561
Substandard	0		0		0		0		0		0		0		0		0
Total	$	89,116	$	291,034	$	96,823	$	4,902	$	6,556	$	353	$	488,784	$	23,266	$	512,050
Commercial real estate - investor
Pass	$	643,174	$	470,085	$	301,510	$	719,699	$	300,772	$	508,639	$	2,943,879	$	26,153	$	2,970,032
Special mention	0		13,090		23,111		9,297		26,079		13,804		85,381		861		86,242
Substandard	0		6,950		6		4,025		17,178		9,631		37,790		0		37,790
Total	$	643,174	$	490,125	$	324,627	$	733,021	$	344,029	$	532,074	$	3,067,050	$	27,014	$	3,094,064
Commercial real estate - owner
Pass	$	165,411	$	155,041	$	170,587	$	101,137	$	112,063	$	211,377	$	915,616	$	11,125	$	926,741
Special mention	0		0		0		1,479		0		14,040		15,519		0		15,519
Substandard	0		525		844		5,114		3,501		6,451		16,435		0		16,435
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	165,411	$	155,566	$	171,431	$	107,730	$	115,564	$	231,868	$	947,570	$	11,125	$	958,695
Residential real estate
Performing	$	320,676	$	274,816	$	205,948	$	110,745	$	51,583	$	114,642	$	1,078,410	$	0	$	1,078,410
Nonperforming	414		1,615		1,286		2,554		1,755		6,231		13,855		0		13,855
Total	$	321,090	$	276,431	$	207,234	$	113,299	$	53,338	$	120,873	$	1,092,265	$	0	$	1,092,265
Home equity
Performing	$	26,411	$	33,414	$	38,226	$	11,733	$	8,051	$	24,985	$	142,820	$	585,712	$	728,532
Nonperforming	5		136		298		78		104		430		1,051		4,208		5,259
Total	$	26,416	$	33,550	$	38,524	$	11,811	$	8,155	$	25,415	$	143,871	$	589,920	$	733,791
Installment
Performing	$	100,256	$	38,694	$	7,244	$	3,915	$	2,861	$	3,242	$	156,212	$	51,854	$	208,066
Nonperforming	650		794		18		6		20		42		1,530		299		1,829
Total	$	100,906	$	39,488	$	7,262	$	3,921	$	2,881	$	3,284	$	157,742	$	52,153	$	209,895
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,287	$	51,287
Nonperforming	0		0		0		0		0		0		0		528		528
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,815	$	51,815
Grand Total	$	2,402,422	$	1,892,719	$	1,223,810	$	1,219,466	$	664,072	$	1,142,818	$	8,545,307	$	1,753,664	$	10,298,971

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 March 31, 2023
(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	$	2,604	$	607	$	540	$	3,751	$	3,445,538	$	3,449,289	$	0
Lease financing	20,776		1,446		101		22,323		251,575		273,898		0
Construction real estate	0		0		0		0		525,906		525,906		0
Commercial real estate-investor	18		5		0		23		3,102,422		3,102,445		0
Commercial real estate-owner	67		85		5,258		5,410		948,772		954,182		0
Residential real estate	3,341		1,639		2,610		7,590		1,137,479		1,145,069		0
Home equity	1,680		472		1,810		3,962		720,710		724,672		0
Installment	795		555		371		1,721		202,651		204,372		0
Credit card	175		122		160		457		53,095		53,552		159
Total	$	29,456	$	4,931	$	10,850	$	45,237	$	10,388,148	$	10,433,385	$	159

	As of December 31, 2022
(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	$	5,375	$	72	$	501	$	5,948	$	3,404,324	$	3,410,272	$	0
Lease financing	5,212		1,052		843		7,107		229,017		236,124		742
Construction real estate	0		0		0		0		512,050		512,050		0
Commercial real estate-investor	0		0		0		0		3,094,064		3,094,064		0
Commercial real estate-owner	26		5,216		44		5,286		953,409		958,695		0
Residential real estate	4,254		2,074		3,260		9,588		1,082,677		1,092,265		0
Home equity	1,725		729		1,209		3,663		730,128		733,791		0
Installment	874		490		414		1,778		208,117		209,895		0
Credit card	261		150		116		527		51,288		51,815		115
Total	$	17,727	$	9,783	$	6,387	$	33,897	$	10,265,074	$	10,298,971	$	857

Nonaccrual. 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.

Financial Difficulty Modifications. Effective January 1, 2023, First Financial prospectively adopted ASU 2022-02 which eliminated the accounting for TDRs while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties, defined by First Financial as FDMs or Financial Difficulty Modifications. As such, effective with the adoption of the standard, the Company prospectively will not include FDMs in the calculation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included TDRs, has not been adjusted.

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 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, 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 table provides the amortized cost basis of FDM as of March 31, 2023 by class of loan and type of modification:

	March 31, 2023
(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	$	725	$	106	$	0	$	58	$	889	0.08	%
Home equity	0		0		0		0		15		15		0.00	%
Total	$	0	$	725	$	106	$	0	$	73	$	904	0.08	%

The following table provides the financial effect of FDM as of March 31, 2023:

	March 31, 2023
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Residential real estate	$	0	2.00	%	11.6 years
Home equity	0		0.31	%	22.6 years
Total	$	0	1.66	%	12.5 years

The Company has committed to lend no additional amounts to the borrowers experiencing financial difficulty. Additionally, there were no loan modifications made to borrowers experiencing financial difficulty during the quarter ended March 31, 2023, that subsequently defaulted.

The Company closely monitors the performance of FDM to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified since the January 1, 2023 adoption date of ASU 2022-02:

	Payment status as of
	March 31, 2023
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due
Residential real estate	$	889	$	0	$	0	$	0
Home equity	15		0		0		0
Total	$	904	$	0	$	0	$	0

Nonperforming loans. Effective January 1, 2023, loans classified as nonaccrual are considered nonperforming. Prior to the adoption of ASU 2022-02, nonperforming loans included nonaccrual loans as well as TDRs.

First Financial individually reviews all nonperforming loan relationships greater than $250,000 to determine if an individually evaluated allowance is necessary based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Individually evaluated allowances 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 nonperforming loans:

	March 31, 2023						December 31, 2022
(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 (1)
Commercial & industrial	$	9,748	$	4,223	$	13,971	$	6,692	$	1,550	$	8,242
Lease financing	0		175		175		0		178		178
Construction real estate	0		0		0		0		0		0
Commercial real estate	0		5,362		5,362		5,216		570		5,786
Residential real estate	0		11,129		11,129		0		10,691		10,691
Home equity	0		3,399		3,399		0		3,123		3,123
Installment	0		544		544		0		603		603
Total nonaccrual loans	$	9,748	$	24,832	$	34,580	$	11,908	$	16,715	$	28,623

(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million as of December 31, 2022.

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Interest income effect on nonperforming loans
Gross amount of interest that would have been recorded under original terms	$	716	$	773
Interest included in income
Nonaccrual loans	308		290
Troubled debt restructurings	0		51
Total interest included in income	308		341
Net impact on interest income	$	408	$	432

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.

	March 31, 2023
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	11,054	$	0	$	2,569	$	0	$	0	$	348	$	13,971
Lease financing	0		0		175		0		0		0		175
Commercial real estate-investor	0		5		0		0		20		0		25
Commercial real estate-owner	0		3,326		1,893		118		0		0		5,337
Residential real estate	0		0		0		0		11,129		0		11,129
Home equity	0		0		0		0		3,399		0		3,399
Installment	0		0		0		0		0		544		544
Total	$	11,054	$	3,331	$	4,637	$	118	$	14,548	$	892	$	34,580
	December 31, 2022
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	8,205	$	0	$	0	$	0	$	0	$	37	$	8,242
Lease financing	0		0		178		0		0		0		178
Commercial real estate-investor	0		353		0		0		22		0		375
Commercial real estate-owner	0		3,399		1,893		119		0		0		5,411
Residential real estate	0		0		0		0		10,691		0		10,691
Home equity	0		0		0		0		3,123		0		3,123
Installment	0		0		0		0		0		603		603
Total	$	8,205	$	3,752	$	2,071	$	119	$	13,836	$	640	$	28,623

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 may be indexed to a rate or index. 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)	March 31, 2023		December 31, 2022
Direct financing leases
Lease receivables	$	31,978	$	35,081
Unguaranteed residual values	14,387		16,058
Sales-type leases
Lease receivables	227,533		184,985
Unguaranteed residual values	0		0
Total net investment in direct financing and sales-type leases	$	273,898	$	236,124

Interest income for direct financing and sales-type leases was $4.9 million and $0.5 million for the three months ended March 31, 2023 and March 31, 2022, respectively.

The remaining maturities of lease receivables were as follows:

(Dollars in thousands)	Direct financing and Sales-type
Remainder of 2023	$	51,984
2024	63,846
2025	56,909
2026	52,425
2027	29,928
Thereafter	41,426
Total lease payments	296,518
Less: unearned interest income	(37,007)
Net lease receivables	$	259,511

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
	March 31,
(Dollars in thousands)	2023		2022
Balance at beginning of period	$	191	$	98
Additions
Commercial & industrial	0		0
Residential real estate	0		72
Total additions	0		72
Disposals
Commercial & industrial	0		(98)
Residential real estate	0		0
Total disposals	0		(98)
Valuation adjustment
Commercial & industrial	0		0
Residential real estate	0		0
Total valuation adjustment	0		0
Balance at end of period	$	191	$	72

XML

ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES

Allowance for credit losses - loans and leases. The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or a guarantor or from the liquidation of collateral. Similarly, upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Cumulative recovery payments credited to the ACL for any loan do not exceed the amount charged-off. Accrued interest receivable on loans and leases, which totaled $49.1 million and $47.5 million as of March 31, 2023 and December 31, 2022, respectively, is excluded from the estimate of credit losses. 

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provides the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. These adjustments are commonly known as the Qualitative Framework.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the ACL using the following methods:

Commercial and industrial – C&I loans include revolving lines of credit and term loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, leasehold improvements or other projects. C&I loans are generally underwritten individually and secured with the assets of the Company and/or the personal guarantee of the business owners. C&I loans also include ABL, equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector and commission-based loans to insurance agents and brokers. ABL transactions typically involve larger commercial clients and are secured by specific assets, such as inventory, accounts receivable, machinery and equipment. In the franchise lending space, First Financial focuses on a limited number of restaurant concepts that have sound economics, low closure rates and strong brand awareness within specified local, regional or national markets. Within the insurance lending platform, First Financial serves insurance agents and brokers that are looking to maximize their book-of-business value and grow their agency business.

Current period default rates are utilized in the modeling of the ACL for C&I loans, and are adjusted for forecasted changes in the treasury term spread and market volatility index. Changes in current period defaults or forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Lease financing – Lease financing consists of lease transactions for the acquisition of both new and used business equipment for commercial clients. Lease products may include tax leases, finance leases, lease lines of credit and interim funding. The credit underwriting for lease transactions includes detailed analysis of the lessee's industry and business model, nature of the equipment, equipment resale values, historical and projected cash flow analysis, secondary sources of repayment and guarantor support in addition to other considerations.

The ACL model for leases sources expected default rates from the C&I portfolio model. Therefore, changes in forecasted expectations for the treasury term spread and market volatility index could result in volatility in the Company's ACL in future periods.

Construction real estate – Real estate construction loans are term loans to individuals, companies or developers used for the construction or development of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Generally, these loans are for construction projects that have been pre-sold, pre-leased or have secured permanent financing, as well as loans to real estate companies with significant equity invested in the project. An independent credit team underwrites construction real estate loans, which are managed by experienced lending officers and monitored through the construction phase by a centralized funding desk that manages loan disbursements.

The construction ACL model is adjusted for forecasted changes in rental vacancy rates in the Bank's geographic footprint and the housing price index. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Commercial real estate - owner & investor – Commercial real estate loans consist of term loans secured by a mortgage lien on real estate properties such as apartment buildings, office and industrial buildings and retail shopping centers. Additionally, the Company's franchise lending activities discussed in the "Commercial and Industrial" section often include the financing of real estate in addition to equipment. The credit underwriting for both owner-occupied and investor income producing real estate loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, environmental risks and the type, age, condition and location of real estate, among other factors.

First Financial models owner-occupied and investor CRE separately when determining the ACL. For owner occupied CRE, current period default rates are utilized in the modeling, and are adjusted for forecasted changes in the BAA bond spread, national rental vacancy rates and the consumer confidence index. Current period default rates are also utilized in the modeling of investor CRE loans, and are adjusted for forecasted changes in the BAA bond spread, multifamily building permits within the Bank’s geographic footprint and national rental vacancy rates. Changes in current period defaults and forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Residential real estate – Residential real estate loans represent loans to consumers for the financing of a residence. These loans generally have a 15 to 30 year term and a fixed interest rate, but may have a shorter term to maturity with an adjustable interest rate. In most cases, these loans are extended to borrowers to finance their primary residence. First Financial sells residential real estate loan originations into the secondary market on both servicing retained and servicing released bases. Residential real estate loans are generally underwritten to secondary market lending standards, utilizing underwriting processes that rely on empirical data to assess credit risk as well as analysis of the borrower's ability to repay their obligations, credit history, the amount of any down payment and the market value or other characteristics of the property. First Financial also offers a residential mortgage product that features similar borrower credit characteristics but a more streamlined underwriting process than typically required to sell to government-sponsored enterprises and thus is retained on the Consolidated Balance Sheets.

The residential real estate ACL model is adjusted for forecasted changes in the housing price index, housing starts within the Bank’s geographic footprint and national single-family existing home sales. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Home equity – Home equity lending includes both term loans and revolving lines of credit secured by a first or second lien on the borrower’s residence. Home equity lending underwriting considerations include the borrower's credit history as well as to debt-to-income and loan-to-value policy limits.

The home equity ACL model is adjusted for forecasted changes in the consumer credit growth rate within the Bank’s geographic footprint and the working-age labor participation rate. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Installment – Installment lending consists of consumer loans not secured by real estate, including loans secured by automobiles and unsecured personal loans.

The ACL model for installment loans sources expected default rates from the residential real estate and home equity portfolio models and is paired with installment specific LGD rates. Changes in forecasted expectations for the consumer credit growth rate within the Bank’s geographic footprint, the working-age labor participation rate, the housing price index, housing starts within the Bank’s geographic footprint and national existing single-family existing home sales could result in volatility in the Company's ACL in future periods.

Credit card – Credit card lending consists of secured and unsecured revolving lines of credit to consumer and business customers. Credit card lines are generally available for an indefinite period of time as long as the borrower's credit characteristics do not materially or adversely change, but lines are unconditionally cancellable by the Company at any time.

The ACL model for credit card loans sources expected default rates from the residential real estate and home equity portfolio models and is paired with credit card specific LGD rates. Changes in forecasted expectations for the consumer credit growth rate within the Bank’s geographic footprint, the working-age labor participation rate, the housing price index, housing starts within the Bank’s geographic footprint and national existing single-family existing home sales could result in volatility in the Company's ACL in future periods.

The Company utilized the Moody's March baseline forecast as its R&S forecast in the quantitative model. For reasonableness, the Company also considered the impact to the model from alternative, more adverse economic forecasts, slower prepayment speeds and increased default rates. These alternative analyses were utilized to inform the Company's qualitative adjustments. Additionally, First Financial considered its credit exposure to certain industries believed to be at risk for future credit stress, such as franchise, hotel and investor commercial real estate lending when making qualitative adjustments to the ACL model.

First Financial's ACL is influenced by loan volumes, risk rating migration or delinquency status, and other conditions impacting loss expectations, such as reasonable and supportable forecasts of economic conditions. For the three months ended March 31, 2023, the ACL increased from year end due to loan growth, slower prepayment speeds, and changes in economic forecasts.

Changes in the allowance by loan category were as follows:

	Three months ended March 31, 2023
(Dollars in thousands)	Commercial & industrial		Lease financing		Construction real estate		Commercial real estate		Residential real estate		Home equity		Installment		Credit card		Total
Allowance for credit losses:
Beginning balance	$	42,313	$	3,571	$	13,527	$	41,106	$	12,684	$	12,447	$	4,945	$	2,384	$	132,977
Provision for credit losses	4,213		391		119		(1,258)		2,786		944		1,218		231		8,644
Loans charged off	(730)		(13)		0		(66)		0		(91)		(1,524)		(217)		(2,641)
Recoveries	109		1		0		2,238		66		80		54		63		2,611
Total net charge-offs	(621)		(12)		0		2,172		66		(11)		(1,470)		(154)		(30)
Ending allowance for credit losses	$	45,905	$	3,950	$	13,646	$	42,020	$	15,536	$	13,380	$	4,693	$	2,461	$	141,591
	Three months ended March 31, 2022
(Dollars in thousands)	Commercial & industrial		Lease financing		Construction real estate		Commercial real estate		Residential real estate		Home equity		Installment		Credit card		Total
Allowance for credit losses:
Beginning balance	$	44,052	$	1,633	$	11,874	$	53,420	$	6,225	$	9,643	$	1,097	$	4,048	$	131,992
Provision for credit losses	(3,803)		558		(464)		(2,130)		(141)		(211)		134		468		(5,589)
Loans charged off	(2,845)		(131)		0		0		(22)		(21)		(177)		(246)		(3,442)
Recoveries	379		33		0		222		90		265		21		159		1,169
Total net charge-offs	(2,466)		(98)		0		222		68		244		(156)		(87)		(2,273)
Ending allowance for credit losses	$	37,783	$	2,093	$	11,410	$	51,512	$	6,152	$	9,676	$	1,075	$	4,429	$	124,130

Allowance for credit losses - unfunded commitments. First Financial estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is

unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases.

First Financial determined the adequacy of this reserve based upon an evaluation of the unfunded credit facilities, which included consideration of historical commitment utilization experience, credit risk ratings and historical loss rates, consistent with the Company's ACL methodology at the time.

The ACL on unfunded commitments was $20.2 million as of March 31, 2023 and $18.4 million as of December 31, 2022. Additionally, First Financial recorded a provision for credit losses on unfunded commitments of $1.8 million for the three months ended March 31, 2023. First Financial recorded provision recapture of $0.2 million for the three months ended March 31, 2022.

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GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill. Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess of the purchase price of the acquisition over the fair value of net assets acquired is recorded as goodwill.

Changes in the carrying amount of goodwill for the three months ended March 31, 2023 and March 31, 2022 were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Balance at beginning of period	$	1,001,507	$	1,000,749
Goodwill resulting from business combinations	4,231		(790)
Balance at end of period	$	1,005,738	$	999,959

In the first quarter of 2023, First Financial recorded $4.2 million of goodwill related to the acquisition of the assets of Brady Ware Capital. Brady Ware Capital specializes in buy-side and sell-side consulting services for mid-sized businesses. This acquisition is consistent with First Financial's approach of adding niche financial services to core banking capabilities and further expands our broad service offerings. The fair value measurements of Brady Ware assets and liabilities are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available, and the measurement period ends in January 2024.

In the first quarter of 2022, First Financial recorded adjustments of $0.8 million to goodwill resulting from the acquisition of Summit Funding Group, Inc. First Financial recorded its final adjustments to goodwill related to the Summit acquisition in the fourth quarter of 2022.

Goodwill is evaluated for impairment on an annual basis as of October 1 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. First Financial performed its most recent annual impairment test as of October 1, 2022 and no impairment was indicated. As of March 31, 2023, no events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value.

Other intangible assets. Other intangible assets consist primarily of core deposit, customer list, mortgage servicing rights and other miscellaneous intangibles, such as purchase commissions, non-compete agreements and trade name intangibles.

Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis over their estimated useful lives. First Financial's core deposit intangibles have an estimated weighted average remaining life of 5.0 years.

First Financial recorded a customer list intangible asset in conjunction with the Summit acquisition to account for the obligation or advantage on the part of either the Company or the customer to continue the pre-existing relationship subsequent to the merger. The customer list intangible asset is being amortized on a straight-line basis over its estimated useful life of 12 years and was $27.0 million and $27.6 million at March 31, 2023 and December 31, 2022, respectively. Additionally, First Financial recorded a customer list intangible asset in conjunction with the Bannockburn acquisition which is being amortized on a straight-line basis over its estimated useful life of 11 years and was $26.6 million and $27.5 million at March 31, 2023 and December 31, 2022, respectively.   

Amortization expense recognized on other intangible assets for the three months ended March 31, 2023 and March 31, 2022 was $3.3 million and $3.7 million, which includes MSR amortization of $0.7 million and $0.8 million, respectively. MSR amortization is included in other noninterest income on the Consolidated Statements of Income.

Mortgage servicing rights represent the value of servicing fees First Financial expects to receive from the servicing responsibilities it retained when selling fixed and adjustable-rate residential mortgage loans. In those sales, First Financial retained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Company’s other assets for failure of debtors to pay when due. First Financial receives servicing fees based on a percentage of the outstanding balance. When First Financial sells mortgage loans with servicing rights retained, these servicing rights are initially recorded at fair value. First Financial has selected the “amortization method” as permissible within U.S. GAAP, whereby the servicing rights capitalized are amortized in proportion to and over the period of estimated future servicing income with respect to the underlying loan. At the end of each reporting period, the carrying value of MSRs is assessed for impairment with a comparison to fair value. MSRs are carried at the lower of their amortized cost or fair value. The amortization of MSRs is included within other noninterest income in the Consolidated Statements of Income.

The gross carrying amount and accumulated amortization of other intangible assets at March 31, 2023 and December 31, 2022 were as follows:

(Dollars in thousands)	March 31, 2023				December 31, 2022
	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
Core deposit intangibles	$	41,750	$	(27,215)	$	41,750	$	(26,488)
Customer list	69,563		(15,981)		69,563		(14,457)
Other	10,960		(4,253)		14,079		(7,064)
Mortgage servicing rights	21,623		(5,278)		21,347		(4,811)
Total	$	143,896	$	(52,727)	$	146,739	$	(52,820)

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LEASES

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lessee, Operating Leases

LEASES - LESSEE

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. For contracts where First Financial is a lessee, substantially all of those agreements are for real estate property for branches, ATM locations and office space.

Substantially all of the company's leases are classified as operating leases. Under Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as an ROU asset and a corresponding lease liability. The Company's right to use an asset over the life of a lease is recorded as a ROU asset in Accrued interest and other assets on the Consolidated Balance Sheets and was $53.2 million and $54.3 million at March 31, 2023 and December 31, 2022, respectively. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. First Financial recorded a $63.2 million and $64.5 million lease liability in Accrued interest and other liabilities on the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet and First Financial recognizes lease expense for these leases on a straight-line basis over the term of the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of renewal options on operating leases is at the Company's sole discretion, and certain leases may include options to purchase the leased property. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. First Financial does not enter into lease agreements which contain material residual value guarantees or material restrictive covenants.

Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements and leases generally also include real estate taxes and common area maintenance charges in the annual rental payments.

The components of lease expense were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Operating lease cost	$	1,914	$	1,899
Short-term lease cost	0		3
Variable lease cost	758		739
Total operating lease cost	$	2,672	$	2,641

Future minimum commitments due under these lease agreements as of March 31, 2023 are as follows:

(Dollars in thousands)	Operating leases
2023 (remaining nine months)	$	5,746
2024	7,359
2025	7,052
2026	6,782
2027	6,224
Thereafter	46,828
Total lease payments	79,991
Less imputed interest	(16,789)
Total	$	63,202

The weighted average remaining lease term and discount rate for the Company's operating leases were as follows:

	March 31, 2023		December 31, 2022
Operating leases
Weighted-average remaining lease term	13.0 years		13.1 years
Weighted-average discount rate	3.30	%	3.29	%

Supplemental cash information at March 31, 2023 and 2022 related to leases was as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,970	$	1,942
ROU assets obtained in exchange for lease obligations
Operating leases	501		2,001

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OPERATING LEASES

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Operating Leases - Lessor

OPERATING LEASES - LESSORFirst Financial provides financing for various types of equipment through a variety of leasing arrangements. Operating leases are carried at cost less accumulated depreciation in the Consolidated Balance Sheets. Operating leases were $154.0 million and $91.7 million at March 31, 2023 and December 31, 2022, respectively, net of accumulated depreciation of $42.2 million and $35.0 million at March 31, 2023 and December 31, 2022, respectively. The Company recorded lease income of $10.2 million and $4.7 million related to lease payments for operating leases in leasing business revenue in the Consolidated Statement of Income for the three months ended March 31, 2023 and 2022, respectively. Depreciation expense related to operating lease equipment was $7.9 million and $3.9 million for the three months ended March 31, 2023 and 2022, respectively.

First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. First Financial recognized no impairment losses associated with operating lease assets for the three months ended March 31, 2023 or 2022. Recognized impairment losses, if any, would be recorded in Leasing business income in the Consolidated Statements of Income.

The future lease payments receivable from operating leases as of March 31, 2023 are as follows:

(Dollars in thousands)	Undiscounted cash flows
2023 (remaining nine months)	$	26,638
2024	30,263
2025	21,311
2026	13,299
2027	5,297
Thereafter	2,009
Total operating lease payments	$	98,817

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BORROWINGS

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Short-term borrowings on the Consolidated Balance Sheets include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, federal funds purchased, overnight advances from the FHLB and a short-term line of credit.

All repurchase agreements are subject to terms and conditions agreed to by the Bank and the client. To secure its liability to the client, the Bank is authorized to sell or repurchase U.S. Treasury, government agency and mortgage-backed securities. As of both March 31, 2023 and December 31, 2022, the Bank had no securities sold under agreements to repurchase.

First Financial had no federal funds purchased at March 31, 2023 or December 31, 2022, while the Company had $1.1 billion in short-term borrowings with the FHLB at both March 31, 2023 and December 31, 2022. These short-term borrowings are used to manage normal liquidity needs and support the Company's asset and liability management strategies. Additionally, at March 31, 2023 and December 31, 2022, other short-term borrowings included $128.2 million and $157.2 million, respectively, of collateral owed by counterparty banks to First Financial.

First Financial also has a $40.0 million short-term credit facility with an unaffiliated bank that matures in December, 2023, which is considered a short-term borrowing. This facility has a variable interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of both March 31, 2023 and December 31, 2022, First Financial had no outstanding balance. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of both March 31, 2023 and December 31, 2022. This credit facility also required First Financial to pledge as collateral the Bank's common stock where the lender is granted a security interest in this collateral.

The following is a summary of First Financial's short-term borrowings:

(Dollars in thousands)	March 31, 2023		December 31, 2022
FHLB short-term borrowings	$	1,089,400	$	1,130,000
Other short-term borrowings	128,160		157,156
Total short-term borrowings	$	1,217,560	$	1,287,156

First Financial had $342.6 million and $346.7 million of long-term debt as of March 31, 2023 and December 31, 2022 respectively, which included subordinated notes, capital lease liabilities and an interest free loan with a municipality.

The following is a summary of First Financial's long-term debt:

	March 31, 2023				December 31, 2022
(Dollars in thousands)	Amount		Average rate		Amount		Average rate
Subordinated notes	$	313,820	5.52	%	$	313,705	5.48	%
Unamortized debt issuance costs	(1,902)		N/A		(1,998)		N/A
Notes issued in conjunction with acquisition of property and equipment	28,277		4.42	%	32,492		4.44	%
Capital lease liability	1,677		3.83	%	1,698		3.82	%
Capital loan with municipality	775		0.00	%	775		0.00	%
Total long-term debt	$	342,647	5.44	%	$	346,672	5.40	%

In 2015, First Financial issued $120.0 million of subordinated notes, which have a fixed interest rate of 5.13% payable semiannually and mature in August 2025. These notes are not redeemable by the Company, or callable by the holders of the notes prior to maturity.

In April 2020, First Financial issued $150.0 million of fixed to floating rate subordinated notes. These subordinated notes have an initial fixed interest rate of 5.25% to, but excluding, May 15, 2025, payable semi-annually in arrears. From, and including, May 15, 2025, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term SOFR, plus 509 basis points, payable quarterly in arrears. The subordinated notes mature on May 15, 2030. These notes are redeemable by the Company in whole or in part beginning with the interest payment date of May 15, 2025.

In addition, First Financial acquired $49.5 million of variable rate subordinated notes in the MSFG merger that were issued to previously formed trusts in exchange for the trust proceeds. These notes were recorded at fair value at the date of the MSFG merger and the Consolidated Balance Sheets include $43.8 million and $43.7 million for these notes at March 31, 2023 and December 31, 2022, respectively. Interest on the acquired subordinated notes is payable quarterly, in arrears, and the Company has the option to defer interest payments for a period not to exceed 20 consecutive quarters. These acquired subordinated notes mature 30 years after the date of original issuance and may be called at par following the 5 year anniversary of issuance. Subordinated notes are treated as Tier 2 capital for regulatory capital purposes and are included in Long-term debt on the Consolidated Balance Sheets.

Additionally, long-term borrowings included $28.3 million and $32.5 million of term notes, both with and without recourse, with an average interest rate of 4.42% and 4.44% at March 31, 2023 and December 31, 2022, respectively. These term notes were used to finance equity investments in the purchase of equipment to be leased to customers.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss).  The following table summarizes the changes within each classification of AOCI:

	Three months ended March 31, 2023
	Total other comprehensive income (loss)										Total accumulated other comprehensive income (loss)
(Dollars in thousands)	Prior to reclass		Reclass from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Unrealized gain (loss) on debt securities	$	39,617	$	519	$	39,098	$	(8,613)	$	30,485	$	(325,925)	$	30,485	$	(295,440)
Retirement obligation	0		(150)		150		(35)		115		(32,023)		115		(31,908)
Foreign currency translation	4		0		4		0		4		(715)		4		(711)
Total	$	39,621	$	369	$	39,252	$	(8,648)	$	30,604	$	(358,663)	$	30,604	$	(328,059)

	Three months ended March 31, 2022
	Total other comprehensive income (loss)										Total accumulated other comprehensive income (loss)
(Dollars in thousands)	Prior to reclass		Reclass from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Unrealized gain (loss) on debt securities	$	(182,479)	$	(3)	$	(182,476)	$	40,075	$	(142,401)	$	21,038	$	(142,401)	$	(121,363)
Retirement obligation	0		(325)		325		21		346		(20,846)		346		(20,500)
Foreign currency translation	11		0		11		0		11		(625)		11		(614)
Total	$	(182,468)	$	(328)	$	(182,140)	$	40,096	$	(142,044)	$	(433)	$	(142,044)	$	(142,477)

The following table presents the activity reclassified from accumulated other comprehensive income into income during the three month periods ended March 31, 2023 and 2022, respectively:

	Amount reclassified from accumulated other comprehensive income (loss)
	Three months ended
	March 31,
(Dollars in thousands)	2023		2022		Affected Line Item in the Consolidated Statements of Income
Realized gain (loss) on securities available-for-sale	$	519	$	(3)	Net gain (loss) on sales of investments securities
Defined benefit pension plan
Amortization of prior service cost (1)	0		75		Other noninterest expense
Recognized net actuarial loss (1)	(150)		(400)		Other noninterest expense
Defined benefit pension plan total	(150)		(325)
Total reclassifications for the period, before tax	$	369	$	(328)

(1) Included in the computation of net periodic pension cost (see Note 14 - Employee Benefit Plans for additional details).

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DERIVATIVES

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

First Financial uses certain derivative instruments, including interest rate caps, floors, swaps and foreign exchange contracts, to meet the needs of its clients while managing the interest and currency rate risk associated with certain transactions.  First Financial may also utilize interest rate swaps to manage the interest rate risk profile of the Company. Interest rate payments are exchanged with counterparties based on the notional amount established in the interest rate agreement. As only interest rate payments are exchanged, the cash requirements and credit risk associated with interest rate swaps are significantly less than the notional amount and the Company’s credit risk exposure is limited to the market value of the instruments. First Financial does not use derivatives for speculative purposes.

First Financial manages market value credit risk through counterparty credit policies including a review of total derivative notional position to total assets, total credit exposure to total capital and counterparty credit exposure risk.

Client derivatives. First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets.

At March 31, 2023, for the interest rate derivatives, the Company had a total counterparty notional amount outstanding of $2.2 billion, spread among six counterparties, with an estimated fair value of $107.7 million. At December 31, 2022, the Company had interest rate derivatives with a total counterparty notional amount outstanding of $2.2 billion, spread among six counterparties, with an estimated fair value of $145.8 million.

First Financial monitors its derivative credit exposure to borrowers by monitoring the creditworthiness of the related loan customers through the Company's normal credit review processes. Additionally, the Company monitors derivative credit risk exposure related to problem loans through its ACL Committee. First Financial considers the market value of a derivative instrument to be part of the carrying value of the related loan for these purposes as the borrower is contractually obligated to pay First Financial this amount in the event the derivative contract is terminated.

In connection with its use of derivative instruments, First Financial and its counterparties may be required to post cash collateral to offset the market position of the derivative instruments. First Financial maintains the right to offset these derivative positions with the collateral posted against them by or with the relevant counterparties.

Foreign exchange contracts. First Financial may enter into foreign exchange derivative contracts for the benefit of commercial customers to hedge their exposure to foreign currency fluctuations. Similar to the hedging of interest rate risk from interest rate derivative contracts, First Financial also enters into foreign exchange contracts with major financial institutions to economically hedge a substantial portion of the exposure from client driven foreign exchange activity. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Foreign exchange income in the Consolidated Statements of Income. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken in providing this service to customers. These controls include an independent determination of currency volatility and credit equivalent exposure on these contracts, counterparty credit approvals and country limits performed by independent risk management. At March 31, 2023, the Company had total counterparty notional amount outstanding of $7.9 billion spread among five counterparties, with an estimated fair value of $21.5 million. At December 31, 2022, the Company had total counterparty notional amounts outstanding of $7.7 billion spread among five counterparties, with an estimated fair value of $17.3 million.

In connection with its use of foreign exchange contracts, First Financial and its counterparties may be required to post cash collateral to offset the market position of the derivative instruments. First Financial maintains the right to offset these derivative positions with the collateral posted against them by or with the relevant counterparties.

The following table details the classification and amounts of client derivatives and foreign exchange contracts recognized in the Consolidated Balance Sheets:

		March 31, 2023						December 31, 2022
				Estimated fair value						Estimated fair value
(Dollars in thousands)	Balance sheet classification	Notional amount		Gain		Loss		Notional amount		Gain		Loss
Client derivatives - instruments associated with loans
Matched interest rate swaps with borrower	Accrued interest and other assets	$	2,248,403	$	10,458	$	(114,269)	$	2,206,351	$	5,057	$	(147,759)
Matched interest rate swaps with counterparty	Accrued interest and other liabilities	2,248,403		114,269		(10,458)		2,206,351		147,759		(5,057)
Foreign exchange contracts
Matched foreign exchange contracts with customers	Accrued interest and other assets	7,927,466		99,348		(77,863)		7,734,395		111,078		(93,804)
Match foreign exchange contracts with counterparty	Accrued interest and other liabilities	7,881,266		77,863		(99,348)		7,681,006		93,804		(111,078)
Total		$	20,305,538	$	301,938	$	(301,938)	$	19,828,103	$	357,698	$	(357,698)

The following table discloses the gross and net amounts of client derivatives and foreign exchange contracts recognized in the Consolidated Balance Sheets:

	March 31, 2023						December 31, 2022
(Dollars in thousands)	Gross amounts of recognized liabilities		Gross amounts offset in the Consolidated Balance Sheets		Net amounts of (assets)/liabilities presented in the Consolidated Balance Sheets		Gross amounts of recognized liabilities		Gross amounts offset in the Consolidated Balance Sheets		Net amounts of (assets)/liabilities presented in the Consolidated Balance Sheets
Client derivatives (1)
Matched interest rate swaps with counterparty	$	124,727	$	(252,151)	$	(127,424)	$	152,816	$	(314,048)	$	(161,232)
Foreign exchange contracts with counterparty	177,211		(89,625)		87,586		204,882		(101,945)		102,937
Total	$	301,938	$	(341,776)	$	(39,838)	$	357,698	$	(415,993)	$	(58,295)
(1) Includes accrued interest receivable and collateral.

The following table details the derivative financial instruments, the average remaining maturities and the weighted-average interest rates being paid and received by First Financial at March 31, 2023:

(Dollars in thousands)	Notional amount		Average maturity (years)	Fair value
Client derivatives-interest rate contracts
Receive fixed, matched interest rate swaps with borrower	$	2,248,403	5.2	$	(103,811)
Pay fixed, matched interest rate swaps with counterparty	2,248,403		5.2	103,811
Client derivatives-foreign exchange contracts
Foreign exchange contracts-pay USD	7,927,466		0.6	21,485
Foreign exchange contracts-receive USD	7,881,266		0.6	(21,485)
Total client derivatives	$	20,305,538	1.6	$	0

At March 31, 2023, the derivative collateral owed by the Company to counterparty banks was $102.1 million with $26.1 million restricted within cash and due from banks on the Company's Consolidated Balance Sheets and $128.2 million recorded in short-term borrowings. Derivative collateral owed by counterparty banks to the Company at December 31, 2022 was $132.2 million with $25.0 million restricted within cash and due from banks and $157.2 million recorded in short-term borrowings.

Credit derivatives. In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial assumes a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will make payments to the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract with the counterparty. The total notional value of these agreements totaled $386.8 million as of March 31, 2023 and $379.3 million

as of December 31, 2022. The fair value of these agreements is recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets and was insignificant at March 31, 2023 and at December 31, 2022.

Mortgage derivatives. First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure IRLCs with First Financial and the loans are intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale. At March 31, 2023, the notional amount of the IRLCs was $32.0 million and the notional amount of forward commitments was $27.5 million. As of December 31, 2022, the notional amount of IRLCs was $12.0 million and the notional amount of forward commitments was $15.3 million. The fair value on these agreements was $0.5 million and $4.3 million at March 31, 2023 and December 31, 2022, respectively, and was recorded in accrued interest and other assets on the Consolidated Balance Sheets.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

First Financial offers a variety of financial instruments including loan commitments and letters of credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements.

First Financial utilizes the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. First Financial’s exposure to credit loss in the event of non-performance by the counterparty was represented by the contractual amounts of those instruments. First Financial adopted ASC 326 and therefore estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases. Adjustments to the reserve for unfunded commitments are recorded in Provision for credit losses - unfunded commitments in the Consolidated Statements of Income. First Financial had $20.2 million and $18.4 million of reserves for unfunded commitments recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, respectively.

Loan commitments. Loan commitments are agreements to extend credit to a client, absent any violation of conditions established in the commitment agreement.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since many of the commitments will expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The amount of collateral obtained, if deemed necessary by First Financial upon extension of credit, is based on management’s credit evaluation of the client.  The collateral held varies, but may include securities, real estate, inventory, plant or equipment.  First Financial had commitments outstanding to extend credit totaling $4.6 billion at March 31, 2023 and $4.4 billion at December 31, 2022. As of March 31, 2023, loan commitments with a fixed interest rate totaled $111.1 million while commitments with variable interest rates totaled $4.5 billion. At December 31, 2022, loan commitments with a fixed interest rate totaled $126.3 million while commitments with variable interest rates totaled $4.2 billion. First Financial's fixed rate loan commitments have interest rates ranging from 0.00% to 21.00% for both March 31, 2023 and December 31, 2022 and have maturities ranging from less than one year to 31.0 years for March 31, 2023 and maturities ranging from less than one year to 31.6 years for December 31, 2022.

The following table presents by type First Financial's active loan balances and related obligations to extend credit:

	March 31, 2023				December 31, 2022
(dollars in thousands)	Unfunded commitment		Loan balance		Unfunded commitment		Loan balance
Commercial & industrial	$	1,868,883	$	3,449,289	$	1,833,977	$	3,410,272
Lease financing	6,847		273,898		6,842		236,124
Construction real estate	704,719		525,906		689,015		512,050
Commercial real estate-investor	107,150		3,102,445		107,205		3,094,064
Commercial real estate-owner	35,040		954,182		48,208		958,695
Residential real estate	76,860		1,145,069		74,089		1,092,265
Home equity	929,440		724,672		903,459		733,791
Installment	20,791		204,372		16,073		209,895
Credit card	218,579		53,552		225,864		51,815
Total	$	3,968,309	$	10,433,385	$	3,904,732	$	10,298,971

Letters of credit. Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party.  First Financial’s letters of credit consist of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services.  The risk to First Financial arises from its obligation to make payment in the event of the client's contractual default to produce the contracted good or service to a third party.  First Financial issued letters of credit aggregating $32.2 million and $31.5 million at March 31, 2023 and December 31, 2022, respectively. Management conducts regular reviews of these instruments on an individual client basis.

Risk participation agreements. First Financial is a party in risk participation transactions of interest rate swaps, which had total notional amount of $386.8 million and $379.3 million at March 31, 2023 and December 31, 2022, respectively.

Affordable housing projects and other tax credit investments. First Financial is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in Accrued interest and other assets in the Consolidated Balance Sheets, with any unfunded commitments included in Accrued interest and other liabilities in the Consolidated Balance Sheets. As of March 31, 2023, First Financial expects to recover its remaining investments through the use of the tax credits that are generated by the investments.

The following table summarizes First Financial's investments in affordable housing projects and other tax credit investments.

(Dollars in thousands)		March 31, 2023				December 31, 2022
Investment	Accounting Method	Investment		Unfunded commitment		Investment		Unfunded commitment
LIHTC	Proportional amortization	$	124,454	$	69,356	$	126,537	$	70,690
HTC	Equity	17,108		11,955		17,108		11,955
NMTC	Equity	2,695		0		2,944		0
Renewable energy	Equity	24,417		13,008		11,851		1,689
Total		$	168,674	$	94,319	$	158,440	$	84,334

The following table summarizes First Financial's amortization expense and tax benefit recognized in affordable housing projects and other tax credit investments.

	Three months ended
	March 31, 2023				March 31, 2022
(Dollars in thousands)	Amortization expense (1)		Tax expense (benefit) recognized (2)		Amortization expense (1)		Tax expense (benefit) recognized (2)
LIHTC	$	3,327	$	(3,540)	$	3,048	$	(2,959)
HTC	0		(80)		0		(80)
NMTC	104		(53)		104		(53)
Renewable energy	0		0		0		0
Total	$	3,431	$	(3,673)	$	3,152	$	(3,092)
(1) The amortization expense for the LIHTC investments is included in income tax expense. The amortization expense for the HTC, NMTC, and Renewable energy tax credits is included in other noninterest expense.
(2) All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the HTC, NMTC, and Renewable energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).

Contingencies/Litigation. First Financial and its subsidiaries are engaged in various matters of litigation and have a number of unresolved claims pending.

Like many banks, First Financial has been the subject of lawsuits relating to overdraft fees. This type of litigation is time consuming and expensive in large part due to the amount of data to be sorted and disclosed, in some cases going back multiple years. No legal settlement expenses were accrued or paid in the three months ended March 31, 2023. During the three months ended March 31, 2022, legal settlement expenses of $3.3 million were paid.

Additionally, as part of the ordinary course of business, First Financial and its subsidiaries are parties to other litigation, including claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral, foreclosure interests that are incidental to our regular business activities and other matters. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of March 31, 2023. Reserves are established for these various matters of litigation when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel. First Financial had no reserves related to litigation matters as of March 31, 2023 or December 31, 2022.

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INCOME TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

For the first quarter of 2022, the Company recorded income tax expense of $17.3 million, resulting in an effective tax rate of 19.7% compared with $9.3 million and an effective tax rate of 18.5% for the comparable period in 2022. The increase in the effective tax rate is primarily driven by higher full year forecasted income for 2023 compared to 2022.

At both March 31, 2023 and December 31, 2022, First Financial had $1.9 million of unrecognized tax benefits, as determined under FASB ASC Topic 740-10, Income Taxes, that if recognized would favorably impact the effective income tax rate in future periods. The unrecognized tax benefits relate to state income tax exposures where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial. The Company believes that resolution regarding its uncertain tax positions is reasonably possible within the next twelve months and could result in full, partial or no recognition of the benefit. First Financial recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. At March 31, 2023 and December 31, 2022, the Company had no interest or penalties recorded.

First Financial and its subsidiaries are subject to U.S. federal income tax as well as state and local income tax in several jurisdictions.  Tax years prior to 2019 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2019 through 2022 remain open to examination by the federal taxing authority. With limited exception, First Financial is no longer subject to state and local income tax examinations for years prior to 2018.

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EMPLOYEE BENEFIT PLANS

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

First Financial sponsors a non-contributory defined benefit pension plan which covers substantially all employees and uses a December 31 measurement date. Plan assets are primarily invested in fixed income and publicly traded equity mutual funds. The pension plan does not directly own any shares of First Financial common stock or any other First Financial security or product.

First Financial made no cash contributions to fund the pension plan during the three months ended March 31, 2023 or the year ended December 31, 2022, and does not expect to make cash contributions to the plan through the remainder of 2023.

As a result of the plan’s actuarial projections, First Financial recorded expense as set forth in the following table. The amounts are recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan.

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Service cost	$	2,350	$	2,425
Interest cost	1,075		625
Expected return on assets	(2,700)		(2,750)
Amortization of prior service cost	0		(75)
Net actuarial loss	150		400
Net periodic benefit cost (income)	$	875	$	625

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REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2023

Revenue Recognition [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

The majority of the Company’s revenues come from sources that are outside of the scope of ASU 2014-09, Revenue from Contracts with Customers. Income sources that are outside of this standard include income earned on loans, leases, securities, derivatives and foreign exchange. The Company's services that fall within the scope of ASU 2014-09 are presented within Noninterest income and are recognized as revenue when the Company satisfies its obligation to the customer. Services within the scope of this guidance include service charges on deposits, trust and wealth management fees, bankcard income, gain/loss on the sale of OREO and investment brokerage fees.

Service charges on deposit accounts. The Company earns revenues from its deposit customers for transaction-based fees, account maintenance fees and overdraft fees. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Similarly, overdraft fees are recognized at the point in time that the overdraft occurs as this corresponds with the Company's performance obligation. Service charges on deposit accounts are withdrawn from the customer's deposit account.

Trust and wealth management fees. Trust and wealth management fees are primarily asset-based, but can also include flat fees based upon a specific service rendered, such as tax preparation services. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fees. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and wealth management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, as incurred.

Trust and wealth management fees also includes brokerage revenue. Brokerage revenue represents fees from investment brokerage services provided to customers by a third party provider. The Company receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are paid the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs.

Bankcard income. The Company earns interchange fees from cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are

recognized concurrent with the transaction processing services provided to the cardholder. Interchange income is presented on the Consolidated Statements of Income net of expenses. Gross interchange income for the first three months of 2023 was $7.2 million, partially offset by $3.6 million of expenses within Noninterest income. Gross interchange income for the same period in 2022 was $6.9 million, partially offset by $3.6 million of expenses within Noninterest income.

Other. Other noninterest income includes recurring revenue streams such as transaction fees, safe deposit rental income, insurance commissions, merchant referral income and gain (loss) on sale of OREO. Transaction fees primarily include check printing sales commissions, collection fees and wire transfer fees which arise from in-branch transactions. Safe deposit rental income arises from fees charged to the customer on an annual basis and recognized upon receipt of payment. Insurance commissions are agent commissions earned by the Company and earned upon the effective date of the bound coverage. Merchant referral income is associated with a program whereby the Company receives a share of processing revenue that is generated from clients that were referred by First Financial to the service provider. Revenue is recognized at the time the transaction occurs.

The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of the executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectibility of the transaction price is probable. Once these criteria are met, the OREO asset is removed and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer.

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EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

	Three months ended
	March 31,
(Dollars in thousands, except per share data)	2023		2022
Numerator
Net income available to common shareholders	$	70,403	$	41,301
Denominator
Weighted average shares outstanding for basic earnings per common share	93,732,532		93,383,932
Effect of dilutive securities
Employee stock awards	1,227,626		879,993
Adjusted weighted average shares for diluted earnings per common share	94,960,158		94,263,925
Earnings per share available to common shareholders
Basic	$	0.75	$	0.44
Diluted	$	0.74	$	0.44

Stock options and warrants with exercise prices greater than the average market price of the common shares were not included in the computation of net income per diluted share, as they would have been antidilutive.  Using the end of period price of the Company's common shares, there were no antidilutive options at March 31, 2023 and March 31, 2022.

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FAIR VALUE DISCLOSURES

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES

The fair value framework as disclosed in the Fair Value Topic includes a hierarchy which focuses on prioritizing the inputs used in valuation techniques.  The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), a lower priority to observable inputs other than quoted prices in active markets for identical assets and liabilities (Level 2) and the lowest priority to unobservable inputs (Level 3).  When determining the fair value measurements for assets and liabilities, First Financial looks to active markets to price identical assets or liabilities whenever possible and classifies such items in Level 1.  When identical assets and liabilities are not traded in active markets, First Financial looks to observable market data for similar assets and liabilities and classifies such items as Level 2.  Certain assets and liabilities are not actively traded in observable markets and First Financial must use alternative techniques, based on unobservable inputs, to determine the fair value and classifies such items as Level 3. The level within the fair value hierarchy is based on the lowest level of input that is significant in the fair value measurement.

The estimated fair values of First Financial’s financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:

	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
March 31, 2023
Financial assets
Cash and short-term investments	$	505,300	$	505,300	$	505,300	$	0	$	0
Investment securities held-to-maturity	83,070		75,762		0		75,762		0
Other investments	143,606		143,606		1,076		133,159		9,371
Loans and leases	10,291,794		9,923,707		0		0		9,923,707
Accrued interest receivable	65,006		65,006		0		15,933		49,073
Financial liabilities
Deposits	12,674,684		12,644,951		0		12,644,951		0
Short-term borrowings	1,217,560		1,217,560		1,217,560		0		0
Long-term debt	342,647		344,131		0		344,131		0
Accrued interest payable	29,896		29,896		8,671		21,225		0

	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2022
Financial assets
Cash and short-term investments	$	595,683	$	595,683	$	595,683	$	0	$	0
Investment securities held-to-maturity	84,021		76,485		0		76,485		0
Other investments	143,160		143,160		1,171		132,853		9,136
Loans and leases	10,165,994		9,916,353		0		0		9,916,353
Accrued interest receivable	63,721		63,721		0		16,233		47,488
Financial liabilities
Deposits	12,701,177		12,670,747		0		12,670,747		0
Short-term borrowings	1,287,156		1,287,156		1,287,156		0		0
Long-term debt	346,672		348,041		0		348,041		0
Accrued interest payable	11,150		11,150		3,835		7,315		0

The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis.

Investment securities. Investment securities classified as available-for-sale are recorded at fair value on a recurring basis.  Fair value measurement is based upon quoted market prices, when available (Level 1).  If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar investment securities.  First Financial compiles prices from various sources who may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2).  Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for the specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities.  Any investment securities not valued based upon the methods previously described are considered Level 3.

First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance.  First Financial’s pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services.  Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities.  First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings.  The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager.

Loans held for sale. The fair value of the Company’s residential mortgage loans held for sale is determined on a recurring basis based on quoted prices for similar loans in active markets, and therefore, is classified as Level 2 the fair value hierarchy.

Derivatives. The fair values of derivative instruments are based primarily on a net present value calculation of the cash flows related to the interest rate swaps and foreign exchange contracts at the reporting date, using primarily observable market inputs such as interest rate yield curves which represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes an internally-developed model to value the credit risk component of derivative assets and liabilities, which is recorded as an adjustment to the fair value of the derivative asset or liability on the reporting date. Derivative instruments are classified as Level 2 in the fair value hierarchy.

Collateral dependent loans. Collateral dependent loans carried at fair value have been partially charged-off or receive specific allocations of the allowance for credit losses. For collateral dependent loans, fair value is generally based on real estate appraisals, a calculation of enterprise value or a valuation of business assets including equipment, inventory and accounts receivable. These loans had a principal amount of $9.7 million and $11.9 million at March 31, 2023 and December 31, 2022, respectively, with a valuation allowance of $4.0 million and $3.7 million at March 31, 2023 and December 31, 2022, respectively.

The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed third-party appraiser (Level 3). These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Collateral dependent loans are evaluated on a quarterly basis for additional write-downs and are adjusted accordingly.

Enterprise value is defined as imputed value for the entire underlying business. To determine an appropriate range of enterprise value, FFB relies on a standardized set of valuation methodologies that take into account future projected cash flows, market based multiples as well as asset values. Valuations involve both quantitative and qualitative considerations and professional judgments concerning differences in financial and operating characteristics in addition to other factors that may impact values over time (Level 3).

The value of business equipment is based on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements.  Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3).  

The fair value of collateral dependent loans is measured at fair value on a nonrecurring basis.  Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income.

OREO. Assets acquired through loan foreclosure are recorded at fair value less costs to sell, with any difference between the fair value of the property and the carrying value of the loan recorded as a charge-off establishing a new cost basis. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in noninterest expense. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value differs from the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. The Company classifies OREO in level 3 of the fair value hierarchy.

Operating leases. First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable and therefore, the carrying value of Operating leases is re-measured at fair value on a nonrecurring basis. When evaluating whether an individual asset is impaired, First Financial considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific asset under review. First Financial determines whether the carrying values of certain operating leases are not recoverable and as a result, records an impairment loss equal to the amount by which the carrying value of the assets exceeds the fair value. The fair value amounts are generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy.

The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows:

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
March 31, 2023
Assets
Investment securities available-for-sale	$	33,421	$	3,316,713	$	34,815	$	3,384,949
Loans held for sale	0		9,280		0		9,280
Interest rate derivative contracts	0		124,765		0		124,765
Foreign exchange derivative contracts	0		177,211		0		177,211
Total	$	33,421	$	3,627,969	$	34,815	$	3,696,205
Liabilities
Interest rate derivative contracts	$	0	$	124,795	$	0	$	124,795
Foreign exchange derivative contracts	0		177,211		0		177,211
Total	$	0	$	302,006	$	0	$	302,006

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2022
Assets
Investment securities available-for-sale	$	32,696	$	3,341,095	$	35,857	$	3,409,648
Loans held for sale	0		7,918		0		7,918
Interest rate derivative contracts	0		152,846		0		152,846
Foreign exchange derivative contracts	0		204,882		0		204,882
Total	$	32,696	$	3,706,741	$	35,857	$	3,775,294
Liabilities
Interest rate derivative contracts	$	0	$	153,119	$	0	$	153,119
Foreign exchange derivative contracts	$	0	$	204,882	$	0	$	204,882
Total	$	0	$	358,001	$	0	$	358,001

The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2023 and March 31, 2022.

	Three months ended
	March 31,
(dollars in thousands)	2023		2022
Beginning balance	$	35,857	$	38,181
Accretion (amortization)	(25)		(13)
Increase (decrease) in fair value	12		13
Settlements	(1,029)		(720)
Ending balance	$	34,815	$	37,461

Certain financial assets and liabilities are measured at fair value on a nonrecurring basis.  Adjustments to the fair value of these assets usually result from the application of fair value accounting or write-downs of individual assets.  The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis.

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Collateral dependent loans
Commercial	$	0	$	0	$	5,760
Commercial real estate	0		0		0
OREO	0		0		0
Operating leases	0		0		0

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2022
Assets
Collateral dependent loans
Commercial	$	0	$	0	$	4,240
Commercial real estate	0		0		4,015
OREO	0		0		0
Operating leases	0		0		0

Fair value option. First Financial may elect to report most financial instruments and certain other items at fair value on an instrument-by instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made.

The Company elected the fair value option for residential mortgage loans held for sale. This election allows for a more effective offset of the changes in fair values of the loans held for sale and the derivative financial instruments used to financially hedge them without having to apply complex hedge accounting requirements. The fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets.

The aggregate fair value of the Company’s residential mortgage loans held for sale as of March 31, 2023 and December 31, 2022 was $9.3 million and $7.9 million, respectively. The aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of March 31, 2023 and December 31, 2022 was $8.4 million and $7.5 million, respectively. The resulting difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was $0.9 million and $0.4 million as of March 31, 2023 and December 31, 2022, respectively.

Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of Net gain from sales of loans in the Company’s Consolidated Statements of Income. The change in fair value of the Company’s residential

mortgage loans held for sale resulted in a gain of $0.5 million for the three months ended March 31, 2023 and a net loss of $1.3 million for the three months ended March 31, 2022.

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Organization, Consolidation and Presentation of Financial Statements (Policies)

3 Months Ended

Mar. 31, 2023

Basis of Presentation Policy

Basis of presentation. The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly-owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation.  Certain reclassifications of prior periods' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings.

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and accompanying notes necessary to constitute a complete set of financial statements required by GAAP and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.  Management believes these unaudited consolidated financial statements reflect all adjustments of a normal recurring nature which are necessary for a fair presentation of the results for the interim periods presented.  The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.  The Consolidated Balance Sheet as of December 31, 2022 has been derived from the audited financial statements in the Company’s 2022 Form 10-K.

Use of Estimates, Policy

Use of estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes.  Actual realized amounts could differ materially from these estimates.

Loans and Leases Receivable, Past Due Status, Policy

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.

Loans and Leases Receivable, Nonaccrual Loan and Lease Status, Policy

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.

Loans and Leases Receivable, Troubled Debt Restructuring Policy

Effective January 1, 2023, First Financial prospectively adopted ASU 2022-02 which eliminated the accounting for TDRs while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties, defined by First Financial as FDMs or Financial Difficulty Modifications. As such, effective with the adoption of the standard, the Company prospectively will not include FDMs in the calculation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included TDRs, has not been adjusted.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 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, 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.

Impaired Financing Receivable, Policy

Effective January 1, 2023, loans classified as nonaccrual are considered nonperforming. Prior to the adoption of ASU 2022-02, nonperforming loans included nonaccrual loans as well as TDRs.First Financial individually reviews all nonperforming loan relationships greater than $250,000 to determine if an individually evaluated allowance is necessary based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Individually evaluated allowances 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.

Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy

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.

Loans and Leases Receivable, Allowance for Loan Losses Policy

Allowance for credit losses - loans and leases. The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or a guarantor or from the liquidation of collateral. Similarly, upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Cumulative recovery payments credited to the ACL for any loan do not exceed the amount charged-off. Accrued interest receivable on loans and leases, which totaled $49.1 million and $47.5 million as of March 31, 2023 and December 31, 2022, respectively, is excluded from the estimate of credit losses. 

Management estimates the allowance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provides the basis for the quantitatively modeled estimation of expected credit losses. First Financial adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. These adjustments are commonly known as the Qualitative Framework.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the ACL using the following methods:

Commercial and industrial – C&I loans include revolving lines of credit and term loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, leasehold improvements or other projects. C&I loans are generally underwritten individually and secured with the assets of the Company and/or the personal guarantee of the business owners. C&I loans also include ABL, equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector and commission-based loans to insurance agents and brokers. ABL transactions typically involve larger commercial clients and are secured by specific assets, such as inventory, accounts receivable, machinery and equipment. In the franchise lending space, First Financial focuses on a limited number of restaurant concepts that have sound economics, low closure rates and strong brand awareness within specified local, regional or national markets. Within the insurance lending platform, First Financial serves insurance agents and brokers that are looking to maximize their book-of-business value and grow their agency business.

Current period default rates are utilized in the modeling of the ACL for C&I loans, and are adjusted for forecasted changes in the treasury term spread and market volatility index. Changes in current period defaults or forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Lease financing – Lease financing consists of lease transactions for the acquisition of both new and used business equipment for commercial clients. Lease products may include tax leases, finance leases, lease lines of credit and interim funding. The credit underwriting for lease transactions includes detailed analysis of the lessee's industry and business model, nature of the equipment, equipment resale values, historical and projected cash flow analysis, secondary sources of repayment and guarantor support in addition to other considerations.

The ACL model for leases sources expected default rates from the C&I portfolio model. Therefore, changes in forecasted expectations for the treasury term spread and market volatility index could result in volatility in the Company's ACL in future periods.

Construction real estate – Real estate construction loans are term loans to individuals, companies or developers used for the construction or development of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Generally, these loans are for construction projects that have been pre-sold, pre-leased or have secured permanent financing, as well as loans to real estate companies with significant equity invested in the project. An independent credit team underwrites construction real estate loans, which are managed by experienced lending officers and monitored through the construction phase by a centralized funding desk that manages loan disbursements.

The construction ACL model is adjusted for forecasted changes in rental vacancy rates in the Bank's geographic footprint and the housing price index. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Commercial real estate - owner & investor – Commercial real estate loans consist of term loans secured by a mortgage lien on real estate properties such as apartment buildings, office and industrial buildings and retail shopping centers. Additionally, the Company's franchise lending activities discussed in the "Commercial and Industrial" section often include the financing of real estate in addition to equipment. The credit underwriting for both owner-occupied and investor income producing real estate loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, environmental risks and the type, age, condition and location of real estate, among other factors.

First Financial models owner-occupied and investor CRE separately when determining the ACL. For owner occupied CRE, current period default rates are utilized in the modeling, and are adjusted for forecasted changes in the BAA bond spread, national rental vacancy rates and the consumer confidence index. Current period default rates are also utilized in the modeling of investor CRE loans, and are adjusted for forecasted changes in the BAA bond spread, multifamily building permits within the Bank’s geographic footprint and national rental vacancy rates. Changes in current period defaults and forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Residential real estate – Residential real estate loans represent loans to consumers for the financing of a residence. These loans generally have a 15 to 30 year term and a fixed interest rate, but may have a shorter term to maturity with an adjustable interest rate. In most cases, these loans are extended to borrowers to finance their primary residence. First Financial sells residential real estate loan originations into the secondary market on both servicing retained and servicing released bases. Residential real estate loans are generally underwritten to secondary market lending standards, utilizing underwriting processes that rely on empirical data to assess credit risk as well as analysis of the borrower's ability to repay their obligations, credit history, the amount of any down payment and the market value or other characteristics of the property. First Financial also offers a residential mortgage product that features similar borrower credit characteristics but a more streamlined underwriting process than typically required to sell to government-sponsored enterprises and thus is retained on the Consolidated Balance Sheets.

The residential real estate ACL model is adjusted for forecasted changes in the housing price index, housing starts within the Bank’s geographic footprint and national single-family existing home sales. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Home equity – Home equity lending includes both term loans and revolving lines of credit secured by a first or second lien on the borrower’s residence. Home equity lending underwriting considerations include the borrower's credit history as well as to debt-to-income and loan-to-value policy limits.

The home equity ACL model is adjusted for forecasted changes in the consumer credit growth rate within the Bank’s geographic footprint and the working-age labor participation rate. Changes in forecasted expectations for these economic variables could result in volatility in the Company's ACL in future periods.

Installment – Installment lending consists of consumer loans not secured by real estate, including loans secured by automobiles and unsecured personal loans.

The ACL model for installment loans sources expected default rates from the residential real estate and home equity portfolio models and is paired with installment specific LGD rates. Changes in forecasted expectations for the consumer credit growth rate within the Bank’s geographic footprint, the working-age labor participation rate, the housing price index, housing starts within the Bank’s geographic footprint and national existing single-family existing home sales could result in volatility in the Company's ACL in future periods.

Credit card – Credit card lending consists of secured and unsecured revolving lines of credit to consumer and business customers. Credit card lines are generally available for an indefinite period of time as long as the borrower's credit characteristics do not materially or adversely change, but lines are unconditionally cancellable by the Company at any time.

The ACL model for credit card loans sources expected default rates from the residential real estate and home equity portfolio models and is paired with credit card specific LGD rates. Changes in forecasted expectations for the consumer credit growth rate within the Bank’s geographic footprint, the working-age labor participation rate, the housing price index, housing starts within the Bank’s geographic footprint and national existing single-family existing home sales could result in volatility in the Company's ACL in future periods.

The Company utilized the Moody's March baseline forecast as its R&S forecast in the quantitative model. For reasonableness, the Company also considered the impact to the model from alternative, more adverse economic forecasts, slower prepayment speeds and increased default rates. These alternative analyses were utilized to inform the Company's qualitative adjustments. Additionally, First Financial considered its credit exposure to certain industries believed to be at risk for future credit stress, such as franchise, hotel and investor commercial real estate lending when making qualitative adjustments to the ACL model.

First Financial's ACL is influenced by loan volumes, risk rating migration or delinquency status, and other conditions impacting loss expectations, such as reasonable and supportable forecasts of economic conditions. For the three months ended March 31, 2023, the ACL increased from year end due to loan growth, slower prepayment speeds, and changes in economic forecasts.

First Financial estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases.

Goodwill and Intangible Assets, Goodwill, Policy

Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess of the purchase price of the acquisition over the fair value of net assets acquired is recorded as goodwill.

Goodwill and Intangible Assets, Goodwill Impairment Policy

Goodwill is evaluated for impairment on an annual basis as of October 1 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. First Financial performed its most recent annual impairment test as of October 1, 2022 and no impairment was indicated. As of March 31, 2023, no events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value.

Lessee, Leases [Policy Text Block]

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. For contracts where First Financial is a lessee, substantially all of those agreements are for real estate property for branches, ATM locations and office space.

Commitments and Contingencies, Policy

First Financial offers a variety of financial instruments including loan commitments and letters of credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements.First Financial utilizes the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. First Financial’s exposure to credit loss in the event of non-performance by the counterparty was represented by the contractual amounts of those instruments. First Financial adopted ASC 326 and therefore estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the Company's ACL methodology for loans and leases. Adjustments to the reserve for unfunded commitments are recorded in Provision for credit losses - unfunded commitments in the Consolidated Statements of Income.

Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block]

Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party.  First Financial’s letters of credit consist of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services.  The risk to First Financial arises from its obligation to make payment in the event of the client's contractual default to produce the contracted good or service to a third party.

Loan Commitments, Policy [Policy Text Block]

Loan commitments are agreements to extend credit to a client, absent any violation of conditions established in the commitment agreement.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since many of the commitments will expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The amount of collateral obtained, if deemed necessary by First Financial upon extension of credit, is based on management’s credit evaluation of the client.  The collateral held varies, but may include securities, real estate, inventory, plant or equipment.

Income Tax, Policy

The unrecognized tax benefits relate to state income tax exposures where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial.

Fair Value Measurement, Policy [Policy Text Block]

The fair value framework as disclosed in the Fair Value Topic includes a hierarchy which focuses on prioritizing the inputs used in valuation techniques.  The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), a lower priority to observable inputs other than quoted prices in active markets for identical assets and liabilities (Level 2) and the lowest priority to unobservable inputs (Level 3).  When determining the fair value measurements for assets and liabilities, First Financial looks to active markets to price identical assets or liabilities whenever possible and classifies such items in Level 1.  When identical assets and liabilities are not traded in active markets, First Financial looks to observable market data for similar assets and liabilities and classifies such items as Level 2.  Certain assets and liabilities are not actively traded in observable markets and First Financial must use alternative techniques, based on unobservable inputs, to determine the fair value and classifies such items as Level 3. The level within the fair value hierarchy is based on the lowest level of input that is significant in the fair value measurement.

Fair Value of Financial Instruments, Policy

The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis.

Investment securities. Investment securities classified as available-for-sale are recorded at fair value on a recurring basis.  Fair value measurement is based upon quoted market prices, when available (Level 1).  If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar investment securities.  First Financial compiles prices from various sources who may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2).  Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for the specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities.  Any investment securities not valued based upon the methods previously described are considered Level 3.

First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance.  First Financial’s pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services.  Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities.  First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings.  The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager.

Loans held for sale. The fair value of the Company’s residential mortgage loans held for sale is determined on a recurring basis based on quoted prices for similar loans in active markets, and therefore, is classified as Level 2 the fair value hierarchy.

Derivatives. The fair values of derivative instruments are based primarily on a net present value calculation of the cash flows related to the interest rate swaps and foreign exchange contracts at the reporting date, using primarily observable market inputs such as interest rate yield curves which represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes an internally-developed model to value the credit risk component of derivative assets and liabilities, which is recorded as an adjustment to the fair value of the derivative asset or liability on the reporting date. Derivative instruments are classified as Level 2 in the fair value hierarchy.

Collateral dependent loans. Collateral dependent loans carried at fair value have been partially charged-off or receive specific allocations of the allowance for credit losses. For collateral dependent loans, fair value is generally based on real estate appraisals, a calculation of enterprise value or a valuation of business assets including equipment, inventory and accounts receivable. These loans had a principal amount of $9.7 million and $11.9 million at March 31, 2023 and December 31, 2022, respectively, with a valuation allowance of $4.0 million and $3.7 million at March 31, 2023 and December 31, 2022, respectively.

The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed third-party appraiser (Level 3). These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Collateral dependent loans are evaluated on a quarterly basis for additional write-downs and are adjusted accordingly.

Enterprise value is defined as imputed value for the entire underlying business. To determine an appropriate range of enterprise value, FFB relies on a standardized set of valuation methodologies that take into account future projected cash flows, market based multiples as well as asset values. Valuations involve both quantitative and qualitative considerations and professional judgments concerning differences in financial and operating characteristics in addition to other factors that may impact values over time (Level 3).

The value of business equipment is based on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements.  Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3).  

The fair value of collateral dependent loans is measured at fair value on a nonrecurring basis.  Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income.

OREO. Assets acquired through loan foreclosure are recorded at fair value less costs to sell, with any difference between the fair value of the property and the carrying value of the loan recorded as a charge-off establishing a new cost basis. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in noninterest expense. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value differs from the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. The Company classifies OREO in level 3 of the fair value hierarchy.

Operating leases. First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable and therefore, the carrying value of Operating leases is re-measured at fair value on a nonrecurring basis. When evaluating whether an individual asset is impaired, First Financial considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific asset under review. First Financial determines whether the carrying values of certain operating leases are not recoverable and as a result, records an impairment loss equal to the amount by which the carrying value of the assets exceeds the fair value. The fair value amounts are generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy.

Credit Risk

Derivatives, Methods of Accounting, Hedging Derivatives, Policy

First Financial manages market value credit risk through counterparty credit policies including a review of total derivative notional position to total assets, total credit exposure to total capital and counterparty credit exposure risk.

Credit Risk Contract [Member]

Derivatives, Methods of Accounting, Hedging Derivatives, Policy

In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial assumes a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will make payments to the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract with the counterparty.

Other Contract-Mortgage

Derivatives, Methods of Accounting, Hedging Derivatives, Policy

First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure IRLCs with First Financial and the loans are intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale.

Fair Value Hedges

Derivatives, Methods of Accounting, Hedging Derivatives, Policy

First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets.

Foreign Exchange

Derivatives, Methods of Accounting, Hedging Derivatives, Policy

First Financial may enter into foreign exchange derivative contracts for the benefit of commercial customers to hedge their exposure to foreign currency fluctuations. Similar to the hedging of interest rate risk from interest rate derivative contracts, First Financial also enters into foreign exchange contracts with major financial institutions to economically hedge a substantial portion of the exposure from client driven foreign exchange activity. These derivatives are classified as free-standing instruments with the revaluation gain or loss recorded in Foreign exchange income in the Consolidated Statements of Income. The Company has risk limits and internal controls in place to help ensure excessive risk is not being taken in providing this service to customers.

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Summary of Held-To-Maturity and Available-For-Sale Investment Securities

The following is a summary of HTM and AFS investment securities as of March 31, 2023:

	Held-to-maturity								Available-for-sale
(Dollars in thousands)	Amortized cost		Unrecognized gain		Unrecognized loss		Fair value		Amortized cost		Unrealized gain		Unrealized loss		Fair value
U.S. Treasuries	$	0	$	0	$	0	$	0	$	37,319	$	0	$	(3,898)	$	33,421
Securities of U.S. government agencies and corporations	0		0		0		0		80,728		0		(12,963)		67,765
Mortgage-backed securities - residential	0		0		0		0		734,761		624		(86,142)		649,243
Mortgage-backed securities - commercial	34,659		0		(3,981)		30,678		669,015		0		(44,121)		624,894
Collateralized mortgage obligations	9,030		0		(684)		8,346		524,394		121		(59,400)		465,115
Obligations of state and other political subdivisions	8,131		172		(186)		8,117		828,948		1,355		(111,128)		719,175
Asset-backed securities	0		0		0		0		746,463		179		(51,567)		695,075
Other securities	31,250		0		(2,629)		28,621		142,030		0		(11,769)		130,261
Total	$	83,070	$	172	$	(7,480)	$	75,762	$	3,763,658	$	2,279	$	(380,988)	$	3,384,949

The following is a summary of HTM and AFS investment securities as of December 31, 2022:

	Held-to-maturity								Available-for-sale
(Dollars in thousands)	Amortized cost		Unrecognized gain		Unrecognized loss		Fair value		Amortized cost		Unrealized gain		Unrealized loss		Fair value
U.S. Treasuries	$	0	$	0	$	0	$	0	$	37,312	$	0	$	(4,616)	$	32,696
Securities of U.S. government agencies and corporations	0		0		0		0		80,382		0		(13,914)		66,468
Mortgage-backed securities - residential	0		0		0		0		747,478		47		(97,462)		650,063
Mortgage-backed securities - commercial	35,363		0		(4,114)		31,249		676,934		2		(47,374)		629,562
Collateralized mortgage obligations	9,280		0		(827)		8,453		538,970		181		(61,439)		477,712
Obligations of state and other political subdivisions	8,128		105		(201)		8,032		832,066		565		(124,168)		708,463
Asset-backed securities	0		0		0		0		772,261		39		(60,975)		711,325
Other securities	31,250		0		(2,499)		28,751		142,015		0		(8,656)		133,359
Total	$	84,021	$	105	$	(7,641)	$	76,485	$	3,827,418	$	834	$	(418,604)	$	3,409,648

Summary of Investment Securities by Estimated Maturity

The following table provides a summary of investment securities by contractual maturity as of March 31, 2023, except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments.

	Held-to-maturity				Available-for-sale
(Dollars in thousands)	Amortized cost		Fair value		Amortized cost		Fair value
By Contractual Maturity:
Due in one year or less	$	0	$	0	$	8,119	$	7,981
Due after one year through five years	2,607		2,720		99,178		93,713
Due after five years through ten years	34,951		32,381		293,272		258,231
Due after ten years	1,823		1,637		688,456		590,697
Mortgage-backed securities - residential	0		0		734,761		649,243
Mortgage-backed securities - commercial	34,659		30,678		669,015		624,894
Collateralized mortgage obligations	9,030		8,346		524,394		465,115
Asset-backed securities	0		0		746,463		695,075
Total	$	83,070	$	75,762	$	3,763,658	$	3,384,949

Age of Gross Unrealized Losses and Associated Fair Value by Investment Category

The following tables provide the fair value and gross unrealized losses of AFS investment securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

	March 31, 2023
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	2,397	$	(34)	$	31,024	$	(3,864)	$	33,421	$	(3,898)
Securities of U.S. Government agencies and corporations	0		0		67,765		(12,963)		67,765		(12,963)
Mortgage-backed securities - residential	119,487		(3,998)		490,241		(82,144)		609,728		(86,142)
Mortgage-backed securities - commercial	84,064		(2,787)		540,830		(41,334)		624,894		(44,121)
Collateralized mortgage obligations	89,481		(3,484)		366,249		(55,916)		455,730		(59,400)
Obligations of state and other political subdivisions	65,220		(3,941)		537,923		(107,187)		603,143		(111,128)
Asset-backed securities	100,004		(2,838)		573,501		(48,729)		673,505		(51,567)
Other securities	48,558		(2,442)		81,569		(9,327)		130,127		(11,769)
Total	$	509,211	$	(19,524)	$	2,689,102	$	(361,464)	$	3,198,313	$	(380,988)

	December 31, 2022
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	2,383	$	(46)	$	30,313	$	(4,570)	$	32,696	$	(4,616)
Securities of U.S. Government agencies and corporations	0		0		66,468		(13,914)		66,468		(13,914)
Mortgage-backed securities - residential	195,972		(10,413)		443,415		(87,049)		639,387		(97,462)
Mortgage-backed securities - commercial	440,207		(18,823)		175,530		(28,551)		615,737		(47,374)
Collateralized mortgage obligations	199,138		(12,453)		269,242		(48,986)		468,380		(61,439)
Obligations of state and other political subdivisions	295,913		(31,196)		368,673		(92,972)		664,586		(124,168)
Asset-backed securities	250,946		(9,410)		422,090		(51,565)		673,036		(60,975)
Other securities	118,262		(6,865)		9,959		(1,791)		128,221		(8,656)
Total	$	1,502,821	$	(89,206)	$	1,785,690	$	(329,398)	$	3,288,511	$	(418,604)

The following tables provide the fair value and gross unrealized losses of HTM investment securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

	March 31, 2023
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	0	$	0	$	0	$	0	$	0	$	0
Securities of U.S. Government agencies and corporations	0		0		0		0		0		0
Mortgage-backed securities - residential	0		0		0		0		0		0
Mortgage-backed securities - commercial	0		0		30,678		(3,981)		30,678		(3,981)
Collateralized mortgage obligations	0		0		8,346		(684)		8,346		(684)
Obligations of state and other political subdivisions	0		0		1,637		(186)		1,637		(186)
Asset-backed securities	0		0		0		0		0		0
Other securities	0		0		28,621		(2,629)		28,621		(2,629)
Total	$	0	$	0	$	69,282	$	(7,480)	$	69,282	$	(7,480)

	December 31, 2022
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
U.S. Treasuries	$	0	$	0	$	0	$	0	$	0	$	0
Securities of U.S. Government agencies and corporations	0		0		0		0		0		0
Mortgage-backed securities - residential	0		0		0		0		0		0
Mortgage-backed securities - commercial	17,656		(2,197)		13,593		(1,917)		31,249		(4,114)
Collateralized mortgage obligations	6,317		(606)		2,136		(221)		8,453		(827)
Obligations of state and other political subdivisions	5,160		(201)		0		0		5,160		(201)
Asset-backed securities	0		0		0		0		0		0
Other securities	7,082		(418)		21,670		(2,081)		28,752		(2,499)
Total	$	36,215	$	(3,422)	$	37,399	$	(4,219)	$	73,614	$	(7,641)

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LOANS AND LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Financial Receivable Credit Quality Indicators

The following table sets forth the Company's loan portfolio at March 31, 2023 by risk attribute and origination date as well as current period gross chargeoffs:

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	165,984	$	869,449	$	538,860	$	336,469	$	202,246	$	290,318	$	2,403,326	$	928,212	$	3,331,538
Special mention	198		13,090		4,198		3,901		10,194		2,217		33,798		13,855		47,653
Substandard	0		2,812		15,308		10,008		6,653		19,550		54,331		15,767		70,098
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	166,182	$	885,351	$	558,366	$	350,378	$	219,093	$	312,085	$	2,491,455	$	957,834	$	3,449,289
YTD Gross chargeoffs	$	0	$	22	$	6	$	0	$	19	$	683	$	730	$	0	$	730
Lease financing
Pass	$	29,221	$	187,765	$	23,349	$	11,891	$	10,465	$	6,925	$	269,616	$	0	$	269,616
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		4,107		0		0		158		17		4,282		0		4,282
Total	$	29,221	$	191,872	$	23,349	$	11,891	$	10,623	$	6,942	$	273,898	$	0	$	273,898
YTD Gross chargeoffs	$	0	$	0	$	13	$	0	$	0	$	0	$	13	$	0	$	13
Construction real estate
Pass	$	8,249	$	185,065	$	209,847	$	75,338	$	6,177	$	6,869	$	491,545	$	19,966	$	511,511
Special mention	0		0		14,395		0		0		0		14,395		0		14,395
Substandard	0		0		0		0		0		0		0		0		0
Total	$	8,249	$	185,065	$	224,242	$	75,338	$	6,177	$	6,869	$	505,940	$	19,966	$	525,906
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - investor
Pass	$	66,536	$	665,650	$	454,273	$	300,956	$	689,958	$	742,866	$	2,920,239	$	28,390	$	2,948,629
Special mention	0		0		13,060		17,134		9,229		51,437		90,860		295		91,155
Substandard	0		0		0		13,874		3,992		44,795		62,661		0		62,661
Doubtful	0		0		0		0		0		0		0		0		0

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Total	$	66,536	$	665,650	$	467,333	$	331,964	$	703,179	$	839,098	$	3,073,760	$	28,685	$	3,102,445
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - owner
Pass	$	27,575	$	167,222	$	148,857	$	159,185	$	99,257	$	308,493	$	910,589	$	9,974	$	920,563
Special mention	0		578		11		1,136		870		14,113		16,708		0		16,708
Substandard	0		0		456		842		5,054		9,909		16,261		650		16,911
Total	$	27,575	$	167,800	$	149,324	$	161,163	$	105,181	$	332,515	$	943,558	$	10,624	$	954,182
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	66	$	66	$	0	$	66
Residential real estate
Performing	$	65,711	$	336,483	$	272,688	$	201,737	$	108,797	$	145,008	$	1,130,424	$	0	$	1,130,424
Nonperforming	0		499		1,277		2,135		2,743		7,991		14,645		0		14,645
Total	$	65,711	$	336,982	$	273,965	$	203,872	$	111,540	$	152,999	$	1,145,069	$	0	$	1,145,069
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Home equity
Performing	$	4,421	$	25,913	$	32,296	$	37,089	$	11,365	$	30,299	$	141,383	$	578,148	$	719,531
Nonperforming	0		5		128		197		0		503		833		4,308		5,141
Total	$	4,421	$	25,918	$	32,424	$	37,286	$	11,365	$	30,802	$	142,216	$	582,456	$	724,672
YTD Gross chargeoffs	$	0	$	0	$	7	$	0	$	0	$	84	$	91	$	0	$	91
Installment
Performing	$	3,282	$	94,791	$	34,611	$	6,118	$	3,141	$	5,319	$	147,262	$	55,284	$	202,546
Nonperforming	1		666		590		30		71		32		1,390		436		1,826
Total	$	3,283	$	95,457	$	35,201	$	6,148	$	3,212	$	5,351	$	148,652	$	55,720	$	204,372
YTD Gross chargeoffs	$	0	$	710	$	769	$	33	$	0	$	12	$	1,524	$	0	$	1,524
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	53,393	$	53,393
Nonperforming	0		0		0		0		0		0		0		159		159
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	53,552	$	53,552
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	217	$	217

The following table sets forth the Company's loan portfolio at December 31, 2022 by risk attribute and origination date:

(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	879,836	$	561,890	$	348,123	$	209,758	$	112,282	$	206,656	$	2,318,545	$	971,080	$	3,289,625
Special mention	2,740		13,821		4,125		14,047		8,523		5,544		48,800		18,055		66,855
Substandard	2,335		5,176		11,886		8,016		3,331		13,812		44,556		9,236		53,792
Total	$	884,911	$	580,887	$	364,134	$	231,821	$	124,136	$	226,012	$	2,411,901	$	998,371	$	3,410,272
Lease financing
Pass	$	167,035	$	25,638	$	13,705	$	12,797	$	9,402	$	2,930	$	231,507	$	0	$	231,507
Special mention	0		0		70		0		0		0		70		0		70
Substandard	4,363		0		0		164		11		9		4,547		0		4,547
Total	$	171,398	$	25,638	$	13,775	$	12,961	$	9,413	$	2,939	$	236,124	$	0	$	236,124
Construction real estate
Pass	$	89,116	$	276,639	$	96,823	$	4,902	$	390	$	353	$	468,223	$	23,266	$	491,489
Special mention	0		14,395		0		0		6,166		0		20,561		0		20,561
Substandard	0		0		0		0		0		0		0		0		0
Total	$	89,116	$	291,034	$	96,823	$	4,902	$	6,556	$	353	$	488,784	$	23,266	$	512,050
Commercial real estate - investor
Pass	$	643,174	$	470,085	$	301,510	$	719,699	$	300,772	$	508,639	$	2,943,879	$	26,153	$	2,970,032
Special mention	0		13,090		23,111		9,297		26,079		13,804		85,381		861		86,242
Substandard	0		6,950		6		4,025		17,178		9,631		37,790		0		37,790
Total	$	643,174	$	490,125	$	324,627	$	733,021	$	344,029	$	532,074	$	3,067,050	$	27,014	$	3,094,064
Commercial real estate - owner
Pass	$	165,411	$	155,041	$	170,587	$	101,137	$	112,063	$	211,377	$	915,616	$	11,125	$	926,741
Special mention	0		0		0		1,479		0		14,040		15,519		0		15,519
Substandard	0		525		844		5,114		3,501		6,451		16,435		0		16,435
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	165,411	$	155,566	$	171,431	$	107,730	$	115,564	$	231,868	$	947,570	$	11,125	$	958,695
Residential real estate
Performing	$	320,676	$	274,816	$	205,948	$	110,745	$	51,583	$	114,642	$	1,078,410	$	0	$	1,078,410
Nonperforming	414		1,615		1,286		2,554		1,755		6,231		13,855		0		13,855
Total	$	321,090	$	276,431	$	207,234	$	113,299	$	53,338	$	120,873	$	1,092,265	$	0	$	1,092,265
Home equity
Performing	$	26,411	$	33,414	$	38,226	$	11,733	$	8,051	$	24,985	$	142,820	$	585,712	$	728,532
Nonperforming	5		136		298		78		104		430		1,051		4,208		5,259
Total	$	26,416	$	33,550	$	38,524	$	11,811	$	8,155	$	25,415	$	143,871	$	589,920	$	733,791
Installment
Performing	$	100,256	$	38,694	$	7,244	$	3,915	$	2,861	$	3,242	$	156,212	$	51,854	$	208,066
Nonperforming	650		794		18		6		20		42		1,530		299		1,829
Total	$	100,906	$	39,488	$	7,262	$	3,921	$	2,881	$	3,284	$	157,742	$	52,153	$	209,895
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,287	$	51,287
Nonperforming	0		0		0		0		0		0		0		528		528
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,815	$	51,815
Grand Total	$	2,402,422	$	1,892,719	$	1,223,810	$	1,219,466	$	664,072	$	1,142,818	$	8,545,307	$	1,753,664	$	10,298,971

Loan Delinquency, including Nonaccrual Loans

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

	As of March 31, 2023
(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	$	2,604	$	607	$	540	$	3,751	$	3,445,538	$	3,449,289	$	0
Lease financing	20,776		1,446		101		22,323		251,575		273,898		0
Construction real estate	0		0		0		0		525,906		525,906		0
Commercial real estate-investor	18		5		0		23		3,102,422		3,102,445		0
Commercial real estate-owner	67		85		5,258		5,410		948,772		954,182		0
Residential real estate	3,341		1,639		2,610		7,590		1,137,479		1,145,069		0
Home equity	1,680		472		1,810		3,962		720,710		724,672		0
Installment	795		555		371		1,721		202,651		204,372		0
Credit card	175		122		160		457		53,095		53,552		159
Total	$	29,456	$	4,931	$	10,850	$	45,237	$	10,388,148	$	10,433,385	$	159

	As of December 31, 2022
(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	$	5,375	$	72	$	501	$	5,948	$	3,404,324	$	3,410,272	$	0
Lease financing	5,212		1,052		843		7,107		229,017		236,124		742
Construction real estate	0		0		0		0		512,050		512,050		0
Commercial real estate-investor	0		0		0		0		3,094,064		3,094,064		0
Commercial real estate-owner	26		5,216		44		5,286		953,409		958,695		0
Residential real estate	4,254		2,074		3,260		9,588		1,082,677		1,092,265		0
Home equity	1,725		729		1,209		3,663		730,128		733,791		0
Installment	874		490		414		1,778		208,117		209,895		0
Credit card	261		150		116		527		51,288		51,815		115
Total	$	17,727	$	9,783	$	6,387	$	33,897	$	10,265,074	$	10,298,971	$	857

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

The following table provides the amortized cost basis of FDM as of March 31, 2023 by class of loan and type of modification:

	March 31, 2023
(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	$	725	$	106	$	0	$	58	$	889	0.08	%
Home equity	0		0		0		0		15		15		0.00	%
Total	$	0	$	725	$	106	$	0	$	73	$	904	0.08	%

The following table provides the financial effect of FDM as of March 31, 2023:

	March 31, 2023
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Residential real estate	$	0	2.00	%	11.6 years
Home equity	0		0.31	%	22.6 years
Total	$	0	1.66	%	12.5 years

Financing Modifications Modifications Payment Status

The Company closely monitors the performance of FDM to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified since the January 1, 2023 adoption date of ASU 2022-02:

	Payment status as of
	March 31, 2023
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due
Residential real estate	$	889	$	0	$	0	$	0
Home equity	15		0		0		0
Total	$	904	$	0	$	0	$	0

Financing Receivable, Nonaccrual

The following table provides information on nonperforming loans:

	March 31, 2023						December 31, 2022
(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 (1)
Commercial & industrial	$	9,748	$	4,223	$	13,971	$	6,692	$	1,550	$	8,242
Lease financing	0		175		175		0		178		178
Construction real estate	0		0		0		0		0		0
Commercial real estate	0		5,362		5,362		5,216		570		5,786
Residential real estate	0		11,129		11,129		0		10,691		10,691
Home equity	0		3,399		3,399		0		3,123		3,123
Installment	0		544		544		0		603		603
Total nonaccrual loans	$	9,748	$	24,832	$	34,580	$	11,908	$	16,715	$	28,623

(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million as of December 31, 2022.

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Interest income effect on nonperforming loans
Gross amount of interest that would have been recorded under original terms	$	716	$	773
Interest included in income
Nonaccrual loans	308		290
Troubled debt restructurings	0		51
Total interest included in income	308		341
Net impact on interest income	$	408	$	432

Schedule of Collateral Dependent Loans

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

	March 31, 2023
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	11,054	$	0	$	2,569	$	0	$	0	$	348	$	13,971
Lease financing	0		0		175		0		0		0		175
Commercial real estate-investor	0		5		0		0		20		0		25
Commercial real estate-owner	0		3,326		1,893		118		0		0		5,337
Residential real estate	0		0		0		0		11,129		0		11,129
Home equity	0		0		0		0		3,399		0		3,399
Installment	0		0		0		0		0		544		544
Total	$	11,054	$	3,331	$	4,637	$	118	$	14,548	$	892	$	34,580
	December 31, 2022
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	8,205	$	0	$	0	$	0	$	0	$	37	$	8,242
Lease financing	0		0		178		0		0		0		178
Commercial real estate-investor	0		353		0		0		22		0		375
Commercial real estate-owner	0		3,399		1,893		119		0		0		5,411
Residential real estate	0		0		0		0		10,691		0		10,691
Home equity	0		0		0		0		3,123		0		3,123
Installment	0		0		0		0		0		603		603
Total	$	8,205	$	3,752	$	2,071	$	119	$	13,836	$	640	$	28,623

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)	March 31, 2023		December 31, 2022
Direct financing leases
Lease receivables	$	31,978	$	35,081
Unguaranteed residual values	14,387		16,058
Sales-type leases
Lease receivables	227,533		184,985
Unguaranteed residual values	0		0
Total net investment in direct financing and sales-type leases	$	273,898	$	236,124

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 2023	$	51,984
2024	63,846
2025	56,909
2026	52,425
2027	29,928
Thereafter	41,426
Total lease payments	296,518
Less: unearned interest income	(37,007)
Net lease receivables	$	259,511

Changes in Other Real Estate Owned

Changes in OREO were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Balance at beginning of period	$	191	$	98
Additions
Commercial & industrial	0		0
Residential real estate	0		72
Total additions	0		72
Disposals
Commercial & industrial	0		(98)
Residential real estate	0		0
Total disposals	0		(98)
Valuation adjustment
Commercial & industrial	0		0
Residential real estate	0		0
Total valuation adjustment	0		0
Balance at end of period	$	191	$	72

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ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Allowance for Credit Losses by Classification

Changes in the allowance by loan category were as follows:

	Three months ended March 31, 2023
(Dollars in thousands)	Commercial & industrial		Lease financing		Construction real estate		Commercial real estate		Residential real estate		Home equity		Installment		Credit card		Total
Allowance for credit losses:
Beginning balance	$	42,313	$	3,571	$	13,527	$	41,106	$	12,684	$	12,447	$	4,945	$	2,384	$	132,977
Provision for credit losses	4,213		391		119		(1,258)		2,786		944		1,218		231		8,644
Loans charged off	(730)		(13)		0		(66)		0		(91)		(1,524)		(217)		(2,641)
Recoveries	109		1		0		2,238		66		80		54		63		2,611
Total net charge-offs	(621)		(12)		0		2,172		66		(11)		(1,470)		(154)		(30)
Ending allowance for credit losses	$	45,905	$	3,950	$	13,646	$	42,020	$	15,536	$	13,380	$	4,693	$	2,461	$	141,591
	Three months ended March 31, 2022
(Dollars in thousands)	Commercial & industrial		Lease financing		Construction real estate		Commercial real estate		Residential real estate		Home equity		Installment		Credit card		Total
Allowance for credit losses:
Beginning balance	$	44,052	$	1,633	$	11,874	$	53,420	$	6,225	$	9,643	$	1,097	$	4,048	$	131,992
Provision for credit losses	(3,803)		558		(464)		(2,130)		(141)		(211)		134		468		(5,589)
Loans charged off	(2,845)		(131)		0		0		(22)		(21)		(177)		(246)		(3,442)
Recoveries	379		33		0		222		90		265		21		159		1,169
Total net charge-offs	(2,466)		(98)		0		222		68		244		(156)		(87)		(2,273)
Ending allowance for credit losses	$	37,783	$	2,093	$	11,410	$	51,512	$	6,152	$	9,676	$	1,075	$	4,429	$	124,130

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GOODWILL (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the three months ended March 31, 2023 and March 31, 2022 were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Balance at beginning of period	$	1,001,507	$	1,000,749
Goodwill resulting from business combinations	4,231		(790)
Balance at end of period	$	1,005,738	$	999,959

Finite-Lived Intangible Assets [Line Items]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

(Dollars in thousands)	March 31, 2023				December 31, 2022
	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
Core deposit intangibles	$	41,750	$	(27,215)	$	41,750	$	(26,488)
Customer list	69,563		(15,981)		69,563		(14,457)
Other	10,960		(4,253)		14,079		(7,064)
Mortgage servicing rights	21,623		(5,278)		21,347		(4,811)
Total	$	143,896	$	(52,727)	$	146,739	$	(52,820)

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LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lease, Cost [Table Text Block]

The components of lease expense were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Operating lease cost	$	1,914	$	1,899
Short-term lease cost	0		3
Variable lease cost	758		739
Total operating lease cost	$	2,672	$	2,641

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Future minimum commitments due under these lease agreements as of March 31, 2023 are as follows:

(Dollars in thousands)	Operating leases
2023 (remaining nine months)	$	5,746
2024	7,359
2025	7,052
2026	6,782
2027	6,224
Thereafter	46,828
Total lease payments	79,991
Less imputed interest	(16,789)
Total	$	63,202

Schedule of supplemental balance sheet information related to leases. [Table Text Block]

The weighted average remaining lease term and discount rate for the Company's operating leases were as follows:

	March 31, 2023		December 31, 2022
Operating leases
Weighted-average remaining lease term	13.0 years		13.1 years
Weighted-average discount rate	3.30	%	3.29	%

Schedule of supplemental cash flow information related to leases [Table Text Block]

Supplemental cash information at March 31, 2023 and 2022 related to leases was as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,970	$	1,942
ROU assets obtained in exchange for lease obligations
Operating leases	501		2,001

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OPERATING LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Operating Leases Maturity (Table Text Block)

The future lease payments receivable from operating leases as of March 31, 2023 are as follows:

(Dollars in thousands)	Undiscounted cash flows
2023 (remaining nine months)	$	26,638
2024	30,263
2025	21,311
2026	13,299
2027	5,297
Thereafter	2,009
Total operating lease payments	$	98,817

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BORROWINGS (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Short-term Debt

The following is a summary of First Financial's short-term borrowings:

(Dollars in thousands)	March 31, 2023		December 31, 2022
FHLB short-term borrowings	$	1,089,400	$	1,130,000
Other short-term borrowings	128,160		157,156
Total short-term borrowings	$	1,217,560	$	1,287,156

Summary of Long-term Debt

The following is a summary of First Financial's long-term debt:

	March 31, 2023				December 31, 2022
(Dollars in thousands)	Amount		Average rate		Amount		Average rate
Subordinated notes	$	313,820	5.52	%	$	313,705	5.48	%
Unamortized debt issuance costs	(1,902)		N/A		(1,998)		N/A
Notes issued in conjunction with acquisition of property and equipment	28,277		4.42	%	32,492		4.44	%
Capital lease liability	1,677		3.83	%	1,698		3.82	%
Capital loan with municipality	775		0.00	%	775		0.00	%
Total long-term debt	$	342,647	5.44	%	$	346,672	5.40	%

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Related Tax Effects Allocated to Other Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes within each classification of AOCI:

	Three months ended March 31, 2023
	Total other comprehensive income (loss)										Total accumulated other comprehensive income (loss)
(Dollars in thousands)	Prior to reclass		Reclass from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Unrealized gain (loss) on debt securities	$	39,617	$	519	$	39,098	$	(8,613)	$	30,485	$	(325,925)	$	30,485	$	(295,440)
Retirement obligation	0		(150)		150		(35)		115		(32,023)		115		(31,908)
Foreign currency translation	4		0		4		0		4		(715)		4		(711)
Total	$	39,621	$	369	$	39,252	$	(8,648)	$	30,604	$	(358,663)	$	30,604	$	(328,059)

	Three months ended March 31, 2022
	Total other comprehensive income (loss)										Total accumulated other comprehensive income (loss)
(Dollars in thousands)	Prior to reclass		Reclass from		Pre-tax		Tax effect		Net of tax		Beginning balance		Net activity		Ending balance
Unrealized gain (loss) on debt securities	$	(182,479)	$	(3)	$	(182,476)	$	40,075	$	(142,401)	$	21,038	$	(142,401)	$	(121,363)
Retirement obligation	0		(325)		325		21		346		(20,846)		346		(20,500)
Foreign currency translation	11		0		11		0		11		(625)		11		(614)
Total	$	(182,468)	$	(328)	$	(182,140)	$	40,096	$	(142,044)	$	(433)	$	(142,044)	$	(142,477)

Other Accumulated Comprehensive income reclassified from AOCI

The following table presents the activity reclassified from accumulated other comprehensive income into income during the three month periods ended March 31, 2023 and 2022, respectively:

	Amount reclassified from accumulated other comprehensive income (loss)
	Three months ended
	March 31,
(Dollars in thousands)	2023		2022		Affected Line Item in the Consolidated Statements of Income
Realized gain (loss) on securities available-for-sale	$	519	$	(3)	Net gain (loss) on sales of investments securities
Defined benefit pension plan
Amortization of prior service cost (1)	0		75		Other noninterest expense
Recognized net actuarial loss (1)	(150)		(400)		Other noninterest expense
Defined benefit pension plan total	(150)		(325)
Total reclassifications for the period, before tax	$	369	$	(328)

(1) Included in the computation of net periodic pension cost (see Note 14 - Employee Benefit Plans for additional details).

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DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Financial Instruments and Balances

The following table details the classification and amounts of client derivatives and foreign exchange contracts recognized in the Consolidated Balance Sheets:

		March 31, 2023						December 31, 2022
				Estimated fair value						Estimated fair value
(Dollars in thousands)	Balance sheet classification	Notional amount		Gain		Loss		Notional amount		Gain		Loss
Client derivatives - instruments associated with loans
Matched interest rate swaps with borrower	Accrued interest and other assets	$	2,248,403	$	10,458	$	(114,269)	$	2,206,351	$	5,057	$	(147,759)
Matched interest rate swaps with counterparty	Accrued interest and other liabilities	2,248,403		114,269		(10,458)		2,206,351		147,759		(5,057)
Foreign exchange contracts
Matched foreign exchange contracts with customers	Accrued interest and other assets	7,927,466		99,348		(77,863)		7,734,395		111,078		(93,804)
Match foreign exchange contracts with counterparty	Accrued interest and other liabilities	7,881,266		77,863		(99,348)		7,681,006		93,804		(111,078)
Total		$	20,305,538	$	301,938	$	(301,938)	$	19,828,103	$	357,698	$	(357,698)

Disclosure by Type of Financial Instrument

The following table discloses the gross and net amounts of client derivatives and foreign exchange contracts recognized in the Consolidated Balance Sheets:

	March 31, 2023						December 31, 2022
(Dollars in thousands)	Gross amounts of recognized liabilities		Gross amounts offset in the Consolidated Balance Sheets		Net amounts of (assets)/liabilities presented in the Consolidated Balance Sheets		Gross amounts of recognized liabilities		Gross amounts offset in the Consolidated Balance Sheets		Net amounts of (assets)/liabilities presented in the Consolidated Balance Sheets
Client derivatives (1)
Matched interest rate swaps with counterparty	$	124,727	$	(252,151)	$	(127,424)	$	152,816	$	(314,048)	$	(161,232)
Foreign exchange contracts with counterparty	177,211		(89,625)		87,586		204,882		(101,945)		102,937
Total	$	301,938	$	(341,776)	$	(39,838)	$	357,698	$	(415,993)	$	(58,295)
(1) Includes accrued interest receivable and collateral.

Derivative Financial Instruments, Average Remaining Maturity and the Weighted-Average Interest Rates being Paid and Received

The following table details the derivative financial instruments, the average remaining maturities and the weighted-average interest rates being paid and received by First Financial at March 31, 2023:

(Dollars in thousands)	Notional amount		Average maturity (years)	Fair value
Client derivatives-interest rate contracts
Receive fixed, matched interest rate swaps with borrower	$	2,248,403	5.2	$	(103,811)
Pay fixed, matched interest rate swaps with counterparty	2,248,403		5.2	103,811
Client derivatives-foreign exchange contracts
Foreign exchange contracts-pay USD	7,927,466		0.6	21,485
Foreign exchange contracts-receive USD	7,881,266		0.6	(21,485)
Total client derivatives	$	20,305,538	1.6	$	0

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies [Table Text Block]

The following table presents by type First Financial's active loan balances and related obligations to extend credit:

	March 31, 2023				December 31, 2022
(dollars in thousands)	Unfunded commitment		Loan balance		Unfunded commitment		Loan balance
Commercial & industrial	$	1,868,883	$	3,449,289	$	1,833,977	$	3,410,272
Lease financing	6,847		273,898		6,842		236,124
Construction real estate	704,719		525,906		689,015		512,050
Commercial real estate-investor	107,150		3,102,445		107,205		3,094,064
Commercial real estate-owner	35,040		954,182		48,208		958,695
Residential real estate	76,860		1,145,069		74,089		1,092,265
Home equity	929,440		724,672		903,459		733,791
Installment	20,791		204,372		16,073		209,895
Credit card	218,579		53,552		225,864		51,815
Total	$	3,968,309	$	10,433,385	$	3,904,732	$	10,298,971

Investment Holdings, Schedule of Investments

The following table summarizes First Financial's investments in affordable housing projects and other tax credit investments.

(Dollars in thousands)		March 31, 2023				December 31, 2022
Investment	Accounting Method	Investment		Unfunded commitment		Investment		Unfunded commitment
LIHTC	Proportional amortization	$	124,454	$	69,356	$	126,537	$	70,690
HTC	Equity	17,108		11,955		17,108		11,955
NMTC	Equity	2,695		0		2,944		0
Renewable energy	Equity	24,417		13,008		11,851		1,689
Total		$	168,674	$	94,319	$	158,440	$	84,334

The following table summarizes First Financial's amortization expense and tax benefit recognized in affordable housing projects and other tax credit investments.

	Three months ended
	March 31, 2023				March 31, 2022
(Dollars in thousands)	Amortization expense (1)		Tax expense (benefit) recognized (2)		Amortization expense (1)		Tax expense (benefit) recognized (2)
LIHTC	$	3,327	$	(3,540)	$	3,048	$	(2,959)
HTC	0		(80)		0		(80)
NMTC	104		(53)		104		(53)
Renewable energy	0		0		0		0
Total	$	3,431	$	(3,673)	$	3,152	$	(3,092)
(1) The amortization expense for the LIHTC investments is included in income tax expense. The amortization expense for the HTC, NMTC, and Renewable energy tax credits is included in other noninterest expense.
(2) All of the tax benefits recognized are included in Income tax expense. The tax benefit recognized for the HTC, NMTC, and Renewable energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).

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EMPLOYEE BENEFIT PLANS (Tables)

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Employee Benefit Plan Amounts Recognized in the Consolidated Balance Sheets and Consolidated Statements of Income

As a result of the plan’s actuarial projections, First Financial recorded expense as set forth in the following table. The amounts are recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan.

	Three months ended
	March 31,
(Dollars in thousands)	2023		2022
Service cost	$	2,350	$	2,425
Interest cost	1,075		625
Expected return on assets	(2,700)		(2,750)
Amortization of prior service cost	0		(75)
Net actuarial loss	150		400
Net periodic benefit cost (income)	$	875	$	625

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EARNINGS PER COMMON SHARE (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per common share:

	Three months ended
	March 31,
(Dollars in thousands, except per share data)	2023		2022
Numerator
Net income available to common shareholders	$	70,403	$	41,301
Denominator
Weighted average shares outstanding for basic earnings per common share	93,732,532		93,383,932
Effect of dilutive securities
Employee stock awards	1,227,626		879,993
Adjusted weighted average shares for diluted earnings per common share	94,960,158		94,263,925
Earnings per share available to common shareholders
Basic	$	0.75	$	0.44
Diluted	$	0.74	$	0.44

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FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of First Financial’s financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:

	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
March 31, 2023
Financial assets
Cash and short-term investments	$	505,300	$	505,300	$	505,300	$	0	$	0
Investment securities held-to-maturity	83,070		75,762		0		75,762		0
Other investments	143,606		143,606		1,076		133,159		9,371
Loans and leases	10,291,794		9,923,707		0		0		9,923,707
Accrued interest receivable	65,006		65,006		0		15,933		49,073
Financial liabilities
Deposits	12,674,684		12,644,951		0		12,644,951		0
Short-term borrowings	1,217,560		1,217,560		1,217,560		0		0
Long-term debt	342,647		344,131		0		344,131		0
Accrued interest payable	29,896		29,896		8,671		21,225		0

	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2022
Financial assets
Cash and short-term investments	$	595,683	$	595,683	$	595,683	$	0	$	0
Investment securities held-to-maturity	84,021		76,485		0		76,485		0
Other investments	143,160		143,160		1,171		132,853		9,136
Loans and leases	10,165,994		9,916,353		0		0		9,916,353
Accrued interest receivable	63,721		63,721		0		16,233		47,488
Financial liabilities
Deposits	12,701,177		12,670,747		0		12,670,747		0
Short-term borrowings	1,287,156		1,287,156		1,287,156		0		0
Long-term debt	346,672		348,041		0		348,041		0
Accrued interest payable	11,150		11,150		3,835		7,315		0

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows:

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
March 31, 2023
Assets
Investment securities available-for-sale	$	33,421	$	3,316,713	$	34,815	$	3,384,949
Loans held for sale	0		9,280		0		9,280
Interest rate derivative contracts	0		124,765		0		124,765
Foreign exchange derivative contracts	0		177,211		0		177,211
Total	$	33,421	$	3,627,969	$	34,815	$	3,696,205
Liabilities
Interest rate derivative contracts	$	0	$	124,795	$	0	$	124,795
Foreign exchange derivative contracts	0		177,211		0		177,211
Total	$	0	$	302,006	$	0	$	302,006

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2022
Assets
Investment securities available-for-sale	$	32,696	$	3,341,095	$	35,857	$	3,409,648
Loans held for sale	0		7,918		0		7,918
Interest rate derivative contracts	0		152,846		0		152,846
Foreign exchange derivative contracts	0		204,882		0		204,882
Total	$	32,696	$	3,706,741	$	35,857	$	3,775,294
Liabilities
Interest rate derivative contracts	$	0	$	153,119	$	0	$	153,119
Foreign exchange derivative contracts	$	0	$	204,882	$	0	$	204,882
Total	$	0	$	358,001	$	0	$	358,001

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2023 and March 31, 2022.

	Three months ended
	March 31,
(dollars in thousands)	2023		2022
Beginning balance	$	35,857	$	38,181
Accretion (amortization)	(25)		(13)
Increase (decrease) in fair value	12		13
Settlements	(1,029)		(720)
Ending balance	$	34,815	$	37,461

Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis.

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Collateral dependent loans
Commercial	$	0	$	0	$	5,760
Commercial real estate	0		0		0
OREO	0		0		0
Operating leases	0		0		0

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2022
Assets
Collateral dependent loans
Commercial	$	0	$	0	$	4,240
Commercial real estate	0		0		4,015
OREO	0		0		0
Operating leases	0		0		0

XML

INVESTMENTS - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Gain (Loss) on Securities [Line Items]
Proceeds from Sale of Debt Securities, Available-for-sale	$ 0	$ 5,003
NumberOfSecuritiesInSecurityPortfolio	1,072		1,251
NumberOfSecuritiesInUnrealizedLossPosition	856		891
Debt Securities, Held-to-maturity, Nonaccrual	$ 0		$ 0
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0		$ 0
Sale of Debt Securities, Available-for-sale, Total	$ 0	$ 5,000

XML

INVESTMENTS - Summary of Held-To-Maturity and Available-For-Sale Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investment Holdings [Line Items]
Total	$ 83,070	$ 84,021
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	172	105
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(7,480)	(7,641)
Held-to-Maturity Market Value	75,762	76,485
Total	3,763,658	3,827,418
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	2,279	834
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(380,988)	(418,604)
Investment securities available-for-sale	3,384,949	3,409,648
U.S. Treasuries
Investment Holdings [Line Items]
Total	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	0
Held-to-Maturity Market Value	0	0
Total	37,319	37,312
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	0	0
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(3,898)	(4,616)
Investment securities available-for-sale	33,421	32,696
Securities of U.S. government agencies and corporations
Investment Holdings [Line Items]
Total	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	0
Held-to-Maturity Market Value	0	0
Total	80,728	80,382
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	0	0
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(12,963)	(13,914)
Investment securities available-for-sale	67,765	66,468
Residential Mortgage Backed Securities [Member]
Investment Holdings [Line Items]
Total	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	0
Held-to-Maturity Market Value	0	0
Total	734,761	747,478
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	624	47
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(86,142)	(97,462)
Investment securities available-for-sale	649,243	650,063
Commercial Mortgage Backed Securities [Member]
Investment Holdings [Line Items]
Total	34,659	35,363
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(3,981)	(4,114)
Held-to-Maturity Market Value	30,678	31,249
Total	669,015	676,934
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	0	2
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(44,121)	(47,374)
Investment securities available-for-sale	624,894	629,562
Collateralized Mortgage Backed Securities [Member]
Investment Holdings [Line Items]
Total	9,030	9,280
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(684)	(827)
Held-to-Maturity Market Value	8,346	8,453
Total	524,394	538,970
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	121	181
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(59,400)	(61,439)
Investment securities available-for-sale	465,115	477,712
Obligations of state and other political subdivisions
Investment Holdings [Line Items]
Total	8,131	8,128
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	172	105
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(186)	(201)
Held-to-Maturity Market Value	8,117	8,032
Total	828,948	832,066
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	1,355	565
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(111,128)	(124,168)
Investment securities available-for-sale	719,175	708,463
Asset-backed Securities [Member]
Investment Holdings [Line Items]
Total	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	0
Held-to-Maturity Market Value	0	0
Total	746,463	772,261
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	179	39
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(51,567)	(60,975)
Investment securities available-for-sale	695,075	711,325
Other securities
Investment Holdings [Line Items]
Total	31,250	31,250
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(2,629)	(2,499)
Held-to-Maturity Market Value	28,621	28,751
Total	142,030	142,015
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments	0	0
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments	(11,769)	(8,656)
Investment securities available-for-sale	$ 130,261	$ 133,359

XML

INVESTMENTS - Summary of Investment Securities by Estimated Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Held-to-Maturity Amortized Cost
Amortized Cost	$ 83,070	$ 84,021
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	75,762	76,485
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	3,763,658	3,827,418
Available-for-Sale Market Value
Investment securities available-for-sale	3,384,949	3,409,648
One Year or Less [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	0
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	0
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	8,119
Available-for-Sale Market Value
Investment securities available-for-sale	7,981
After One Year Through Five Years [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	2,607
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	2,720
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	99,178
Available-for-Sale Market Value
Investment securities available-for-sale	93,713
After Five Years Through Ten Years [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	34,951
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	32,381
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	293,272
Available-for-Sale Market Value
Investment securities available-for-sale	258,231
After Ten Years [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	1,823
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	1,637
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	688,456
Available-for-Sale Market Value
Investment securities available-for-sale	590,697
Residential Mortgage Backed Securities [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	0	0
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	0	0
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	734,761	747,478
Available-for-Sale Market Value
Investment securities available-for-sale	649,243	650,063
Commercial Mortgage Backed Securities [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	34,659	35,363
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	30,678	31,249
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	669,015	676,934
Available-for-Sale Market Value
Investment securities available-for-sale	624,894	629,562
Collateralized Mortgage Backed Securities [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	9,030	9,280
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	8,346	8,453
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	524,394	538,970
Available-for-Sale Market Value
Investment securities available-for-sale	465,115	477,712
Asset-backed Securities [Member]
Held-to-Maturity Amortized Cost
Amortized Cost	0	0
Held-to-Maturity Market Value
Debt Securities, Held-to-maturity, Fair Value	0	0
Available-for-Sale Amortized Cost
Debt Securities, Available-for-sale, Amortized Cost	746,463	772,261
Available-for-Sale Market Value
Investment securities available-for-sale	$ 695,075	$ 711,325

XML

INVESTMENTS - Age of Gross Unrealized Losses and Associated Fair Value by Investment Category (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	$ 83,070	$ 84,021
Debt Securities, Held-to-maturity, Fair Value	75,762	76,485
Debt Securities, Available-for-sale, Amortized Cost	3,763,658	3,827,418
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	3,384,949	3,409,648
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	509,211	1,502,821
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	3,422
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	2,689,102	1,785,690
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	361,464	329,398
Debt Securities, Available-for-Sale, Unrealized Loss Position	3,198,313	3,288,511
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	380,988	418,604
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	36,215
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	69,282	37,399
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	7,480	4,219
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	69,282	73,614
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	7,480	7,641
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	19,524	89,206
U.S. Treasuries
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	0	0
Debt Securities, Held-to-maturity, Fair Value	0	0
Debt Securities, Available-for-sale, Amortized Cost	37,319	37,312
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	33,421	32,696
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	2,397	2,383
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	31,024	30,313
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,864	4,570
Debt Securities, Available-for-Sale, Unrealized Loss Position	33,421	32,696
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	3,898	4,616
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	34	46
Securities of U.S. government agencies and corporations
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	0	0
Debt Securities, Held-to-maturity, Fair Value	0	0
Debt Securities, Available-for-sale, Amortized Cost	80,728	80,382
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	67,765	66,468
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	67,765	66,468
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	12,963	13,914
Debt Securities, Available-for-Sale, Unrealized Loss Position	67,765	66,468
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	12,963	13,914
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Residential Mortgage Backed Securities [Member]
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	0	0
Debt Securities, Held-to-maturity, Fair Value	0	0
Debt Securities, Available-for-sale, Amortized Cost	734,761	747,478
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	649,243	650,063
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	119,487	195,972
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	490,241	443,415
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	82,144	87,049
Debt Securities, Available-for-Sale, Unrealized Loss Position	609,728	639,387
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	86,142	97,462
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3,998	10,413
Commercial Mortgage Backed Securities [Member]
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	34,659	35,363
Debt Securities, Held-to-maturity, Fair Value	30,678	31,249
Debt Securities, Available-for-sale, Amortized Cost	669,015	676,934
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	624,894	629,562
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	84,064	440,207
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	2,197
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	540,830	175,530
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	41,334	28,551
Debt Securities, Available-for-Sale, Unrealized Loss Position	624,894	615,737
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	44,121	47,374
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	17,656
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	30,678	13,593
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,981	1,917
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	30,678	31,249
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	3,981	4,114
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2,787	18,823
Collateralized Mortgage Backed Securities [Member]
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	9,030	9,280
Debt Securities, Held-to-maturity, Fair Value	8,346	8,453
Debt Securities, Available-for-sale, Amortized Cost	524,394	538,970
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	465,115	477,712
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	89,481	199,138
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	606
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	366,249	269,242
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	55,916	48,986
Debt Securities, Available-for-Sale, Unrealized Loss Position	455,730	468,380
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	59,400	61,439
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	6,317
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	8,346	2,136
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	684	221
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	8,346	8,453
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	684	827
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3,484	12,453
Obligations of state and other political subdivisions
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	8,131	8,128
Debt Securities, Held-to-maturity, Fair Value	8,117	8,032
Debt Securities, Available-for-sale, Amortized Cost	828,948	832,066
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	719,175	708,463
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	65,220	295,913
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	201
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	537,923	368,673
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	107,187	92,972
Debt Securities, Available-for-Sale, Unrealized Loss Position	603,143	664,586
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	111,128	124,168
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	5,160
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	1,637	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	186	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	1,637	5,160
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	186	201
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3,941	31,196
Asset-backed Securities [Member]
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	0	0
Debt Securities, Held-to-maturity, Fair Value	0	0
Debt Securities, Available-for-sale, Amortized Cost	746,463	772,261
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	695,075	711,325
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	100,004	250,946
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	573,501	422,090
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	48,729	51,565
Debt Securities, Available-for-Sale, Unrealized Loss Position	673,505	673,036
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	51,567	60,975
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	0	0
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2,838	9,410
Other securities
Investments, Unrealized Loss Position [Line Items]
Amortized Cost	31,250	31,250
Debt Securities, Held-to-maturity, Fair Value	28,621	28,751
Debt Securities, Available-for-sale, Amortized Cost	142,030	142,015
Investment securities available-for-sale, at fair value (amortized cost $3,763,658 at March 31, 2023 and $3,827,418 at December 31, 2022)	130,261	133,359
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	48,558	118,262
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	418
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	81,569	9,959
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	9,327	1,791
Debt Securities, Available-for-Sale, Unrealized Loss Position	130,127	128,221
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	11,769	8,656
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	0	7,082
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	28,621	21,670
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2,629	2,081
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Fair Value	28,621	28,752
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss	2,629	2,499
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 2,442	$ 6,865

XML

LOANS AND LEASES - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0
Restructured Loans, Nonaccrual Status		$ 10,000,000
Real Estate Acquired Through Foreclosure	191,000	191,000	$ 72,000	$ 98,000
Loans and Leases Receivable, Net of Deferred Income	10,433,385,000	10,298,971,000
Unused Commitments to Extend Credit	3,968,309,000	3,904,732,000
Commercial segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	13,971,000	8,242,000
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Restructured Loans, Loan Relationships, Review Threshold Amount Minimum	250,000
Loans and Leases Receivable, Net of Deferred Income	11,129,000	10,691,000
Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	175,000	$ 178,000
Financial Difficulty Modification
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused Commitments to Extend Credit	$ 0

XML

LOANS AND LEASES - Commercial and Consumer Credit Exposure by Risk Attribute (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 8,545,307
Loans and Leases Receivable, Net of Deferred Income	$ 10,433,385	10,298,971
Gross loans and leases, excluding accrued interest	10,433,385	10,298,971
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		2,402,422
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		1,892,719
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		1,223,810
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		1,219,466
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		664,072
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		1,142,818
Financing Receivable, Excluding Accrued Interest, Revolving		1,753,664
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	730
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	730
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	683
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	19
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	6
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	22
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Credit card
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	217
Financing Receivable Allowance For Credit Losses Write Offs Revolving	217
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	0
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Installment
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	1,524
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	1,524
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	12
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	33
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	769
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	710
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Home Equity Loan
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,399	3,123
Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	91
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	91
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	84
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	7
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Residential Portfolio Segment [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,129	10,691
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	0
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Commercial real estate-owner
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	66
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	66
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	66
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Commercial real estate - investor
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and Leases Receivable, Net of Deferred Income	25	375
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	0
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Construction real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	0
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Lease financing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and Leases Receivable, Net of Deferred Income	175	178
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year Including Revolving	13
Financing Receivable Allowance For Credit Losses Write Offs Revolving	0
Financing Receivable Allowance For Credit Losses Write Offs By Origination Year	13
Financing Receivable Allowance For Credit Losses Write Offs in Five or More Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Four Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Three Years Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs Two Years Before Latest Fiscal Year	13
Financing Receivable Allowance For Credit Losses Write Offs In Fiscal Year Before Latest Fiscal Year	0
Financing Receivable Allowance For Credit Losses Write Offs In Current Fiscal Year	0
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,491,455	2,411,901
Loans and Leases Receivable, Net of Deferred Income	3,449,289	3,410,272
Gross loans and leases, excluding accrued interest	3,449,289	3,410,272
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	166,182	884,911
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	885,351	580,887
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	558,366	364,134
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	350,378	231,821
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	219,093	124,136
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	312,085	226,012
Financing Receivable, Excluding Accrued Interest, Revolving	957,834	998,371
Commercial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,403,326	2,318,545
Gross loans and leases, excluding accrued interest	3,331,538	3,289,625
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	165,984	879,836
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	869,449	561,890
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	538,860	348,123
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	336,469	209,758
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	202,246	112,282
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	290,318	206,656
Financing Receivable, Excluding Accrued Interest, Revolving	928,212	971,080
Commercial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	33,798	48,800
Gross loans and leases, excluding accrued interest	47,653	66,855
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	198	2,740
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	13,090	13,821
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	4,198	4,125
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	3,901	14,047
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	10,194	8,523
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	2,217	5,544
Financing Receivable, Excluding Accrued Interest, Revolving	13,855	18,055
Commercial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	54,331	44,556
Gross loans and leases, excluding accrued interest	70,098	53,792
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	2,335
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	2,812	5,176
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	15,308	11,886
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	10,008	8,016
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	6,653	3,331
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	19,550	13,812
Financing Receivable, Excluding Accrued Interest, Revolving	15,767	9,236
Commercial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	0
Gross loans and leases, excluding accrued interest	0
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Lease financing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	273,898	236,124
Loans and Leases Receivable, Net of Deferred Income	273,898	236,124
Gross loans and leases, excluding accrued interest	273,898	236,124
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	29,221	171,398
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	191,872	25,638
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	23,349	13,775
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	11,891	12,961
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	10,623	9,413
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	6,942	2,939
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Lease financing | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	269,616	231,507
Gross loans and leases, excluding accrued interest	269,616	231,507
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	29,221	167,035
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	187,765	25,638
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	23,349	13,705
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	11,891	12,797
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	10,465	9,402
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	6,925	2,930
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Lease financing | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	70
Gross loans and leases, excluding accrued interest	0	70
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	70
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Lease financing | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	4,282	4,547
Gross loans and leases, excluding accrued interest	4,282	4,547
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	4,363
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	4,107	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	164
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	158	11
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	17	9
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Construction real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	505,940	488,784
Loans and Leases Receivable, Net of Deferred Income	525,906	512,050
Gross loans and leases, excluding accrued interest	525,906	512,050
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	8,249	89,116
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	185,065	291,034
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	224,242	96,823
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	75,338	4,902
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	6,177	6,556
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	6,869	353
Financing Receivable, Excluding Accrued Interest, Revolving	19,966	23,266
Construction real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	491,545	468,223
Gross loans and leases, excluding accrued interest	511,511	491,489
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	8,249	89,116
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	185,065	276,639
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	209,847	96,823
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	75,338	4,902
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	6,177	390
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	6,869	353
Financing Receivable, Excluding Accrued Interest, Revolving	19,966	23,266
Construction real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	14,395	20,561
Gross loans and leases, excluding accrued interest	14,395	20,561
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	14,395
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	14,395	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	6,166
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Construction real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	0
Gross loans and leases, excluding accrued interest	0	0
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Commercial real estate - investor
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	3,073,760	3,067,050
Loans and Leases Receivable, Net of Deferred Income	3,102,445	3,094,064
Gross loans and leases, excluding accrued interest	3,102,445	3,094,064
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	66,536	643,174
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	665,650	490,125
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	467,333	324,627
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	331,964	733,021
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	703,179	344,029
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	839,098	532,074
Financing Receivable, Excluding Accrued Interest, Revolving	28,685	27,014
Commercial real estate - investor | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,920,239	2,943,879
Gross loans and leases, excluding accrued interest	2,948,629	2,970,032
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	66,536	643,174
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	665,650	470,085
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	454,273	301,510
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	300,956	719,699
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	689,958	300,772
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	742,866	508,639
Financing Receivable, Excluding Accrued Interest, Revolving	28,390	26,153
Commercial real estate - investor | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	90,860	85,381
Gross loans and leases, excluding accrued interest	91,155	86,242
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	13,090
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	13,060	23,111
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	17,134	9,297
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	9,229	26,079
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	51,437	13,804
Financing Receivable, Excluding Accrued Interest, Revolving	295	861
Commercial real estate - investor | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	62,661	37,790
Gross loans and leases, excluding accrued interest	62,661	37,790
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	6,950
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	6
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	13,874	4,025
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	3,992	17,178
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	44,795	9,631
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Commercial real estate - investor | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	0
Gross loans and leases, excluding accrued interest	0
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Commercial real estate-owner
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	943,558	947,570
Loans and Leases Receivable, Net of Deferred Income	954,182	958,695
Gross loans and leases, excluding accrued interest	954,182	958,695
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	27,575	165,411
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	167,800	155,566
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	149,324	171,431
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	161,163	107,730
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	105,181	115,564
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	332,515	231,868
Financing Receivable, Excluding Accrued Interest, Revolving	10,624	11,125
Commercial real estate-owner | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	910,589	915,616
Gross loans and leases, excluding accrued interest	920,563	926,741
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	27,575	165,411
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	167,222	155,041
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	148,857	170,587
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	159,185	101,137
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	99,257	112,063
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	308,493	211,377
Financing Receivable, Excluding Accrued Interest, Revolving	9,974	11,125
Commercial real estate-owner | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	16,708	15,519
Gross loans and leases, excluding accrued interest	16,708	15,519
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	578	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	11	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	1,136	1,479
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	870	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	14,113	14,040
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Commercial real estate-owner | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	16,261	16,435
Gross loans and leases, excluding accrued interest	16,911	16,435
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	525
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	456	844
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	842	5,114
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	5,054	3,501
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	9,909	6,451
Financing Receivable, Excluding Accrued Interest, Revolving	650	0
Commercial real estate-owner | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss		0
Gross loans and leases, excluding accrued interest		0
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Residential Portfolio Segment [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	1,145,069	1,092,265
Loans and Leases Receivable, Net of Deferred Income	1,145,069	1,092,265
Gross loans and leases, excluding accrued interest	1,145,069	1,092,265
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	65,711	321,090
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	336,982	276,431
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	273,965	207,234
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	203,872	113,299
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	111,540	53,338
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	152,999	120,873
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Residential Portfolio Segment [Member] | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	1,130,424	1,078,410
Gross loans and leases, excluding accrued interest	1,130,424	1,078,410
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	65,711	320,676
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	336,483	274,816
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	272,688	205,948
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	201,737	110,745
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	108,797	51,583
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	145,008	114,642
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Residential Portfolio Segment [Member] | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	14,645	13,855
Gross loans and leases, excluding accrued interest	14,645	13,855
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	414
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	499	1,615
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	1,277	1,286
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	2,135	2,554
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	2,743	1,755
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	7,991	6,231
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	142,216	143,871
Loans and Leases Receivable, Net of Deferred Income	724,672	733,791
Gross loans and leases, excluding accrued interest	724,672	733,791
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	4,421	26,416
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	25,918	33,550
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	32,424	38,524
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	37,286	11,811
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	11,365	8,155
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	30,802	25,415
Financing Receivable, Excluding Accrued Interest, Revolving	582,456	589,920
Home equity | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	141,383	142,820
Gross loans and leases, excluding accrued interest	719,531	728,532
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	4,421	26,411
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	25,913	33,414
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	32,296	38,226
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	37,089	11,733
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	11,365	8,051
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	30,299	24,985
Financing Receivable, Excluding Accrued Interest, Revolving	578,148	585,712
Home equity | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	833	1,051
Gross loans and leases, excluding accrued interest	5,141	5,259
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	5
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	5	136
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	128	298
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	197	78
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	104
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	503	430
Financing Receivable, Excluding Accrued Interest, Revolving	4,308	4,208
Installment
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	148,652	157,742
Loans and Leases Receivable, Net of Deferred Income	204,372	209,895
Gross loans and leases, excluding accrued interest	204,372	209,895
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	3,283	100,906
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	95,457	39,488
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	35,201	7,262
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	6,148	3,921
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	3,212	2,881
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	5,351	3,284
Financing Receivable, Excluding Accrued Interest, Revolving	55,720	52,153
Installment | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	147,262	156,212
Gross loans and leases, excluding accrued interest	202,546	208,066
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	3,282	100,256
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	94,791	38,694
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	34,611	7,244
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	6,118	3,915
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	3,141	2,861
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	5,319	3,242
Financing Receivable, Excluding Accrued Interest, Revolving	55,284	51,854
Installment | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	1,390	1,530
Gross loans and leases, excluding accrued interest	1,826	1,829
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1	650
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	666	794
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	590	18
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	30	6
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	71	20
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	32	42
Financing Receivable, Excluding Accrued Interest, Revolving	436	299
Credit card
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	0
Loans and Leases Receivable, Net of Deferred Income	53,552	51,815
Gross loans and leases, excluding accrued interest	53,552	51,815
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	53,552	51,815
Credit card | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	0
Gross loans and leases, excluding accrued interest	53,393	51,287
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	53,393	51,287
Credit card | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	0
Gross loans and leases, excluding accrued interest	159	528
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	$ 159	$ 528

XML

LOANS AND LEASES - Loan Delinquency, including Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	$ 45,237	$ 33,897
Current	10,388,148	10,265,074
Gross loans and leases, excluding accrued interest	10,433,385	10,298,971
> 90 days past due and still accruing	159	857
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	29,456	17,727
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	4,931	9,783
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	10,850	6,387
Commercial
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	3,751	5,948
Current	3,445,538	3,404,324
Gross loans and leases, excluding accrued interest	3,449,289	3,410,272
> 90 days past due and still accruing	0	0
Commercial | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	2,604	5,375
Commercial | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	607	72
Commercial | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	540	501
Lease financing
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	22,323	7,107
Current	251,575	229,017
Gross loans and leases, excluding accrued interest	273,898	236,124
> 90 days past due and still accruing	0	742
Lease financing | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	20,776	5,212
Lease financing | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	1,446	1,052
Lease financing | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	101	843
Construction real estate
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	0	0
Current	525,906	512,050
Gross loans and leases, excluding accrued interest	525,906	512,050
> 90 days past due and still accruing	0	0
Construction real estate | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	0	0
Construction real estate | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	0	0
Construction real estate | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	0	0
Commercial real estate - investor
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	23	0
Current	3,102,422	3,094,064
Gross loans and leases, excluding accrued interest	3,102,445	3,094,064
> 90 days past due and still accruing	0	0
Commercial real estate - investor | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	18	0
Commercial real estate - investor | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	5	0
Commercial real estate - investor | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	0	0
Commercial real estate-owner
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	5,410	5,286
Current	948,772	953,409
Gross loans and leases, excluding accrued interest	954,182	958,695
> 90 days past due and still accruing	0	0
Commercial real estate-owner | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	67	26
Commercial real estate-owner | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	85	5,216
Commercial real estate-owner | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	5,258	44
Residential real estate
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	7,590	9,588
Current	1,137,479	1,082,677
Gross loans and leases, excluding accrued interest	1,145,069	1,092,265
> 90 days past due and still accruing	0	0
Residential real estate | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	3,341	4,254
Residential real estate | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	1,639	2,074
Residential real estate | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	2,610	3,260
Home equity
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	3,962	3,663
Current	720,710	730,128
Gross loans and leases, excluding accrued interest	724,672	733,791
> 90 days past due and still accruing	0	0
Home equity | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	1,680	1,725
Home equity | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	472	729
Home equity | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	1,810	1,209
Installment
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	1,721	1,778
Current	202,651	208,117
Gross loans and leases, excluding accrued interest	204,372	209,895
> 90 days past due and still accruing	0	0
Installment | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	795	874
Installment | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	555	490
Installment | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	371	414
Credit card
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	457	527
Current	53,095	51,288
Gross loans and leases, excluding accrued interest	53,552	51,815
> 90 days past due and still accruing	159	115
Credit card | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	175	261
Credit card | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	122	150
Credit card | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss, Noncurrent	$ 160	$ 116

XML

LOANS AND LEASES - Financial Difficulty Modifications (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 904
Finance Receivable Percentage Of Class Of Loans And Leases	0.0008
Principal Forgiveness
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	0
Payment Delay
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	725
Extended Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 106
Financing Receivable Restructured Loans Not Considered TDRs Weighted Average Term Extension	12.5 years
Contractual Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0
Financing Receivable Restructured Loans Not Considered TDRs Weighted Average Interest Rate Reduction	1.66%
Term Extension and Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 73
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 889
Finance Receivable Percentage Of Class Of Loans And Leases	0.0008
Residential Portfolio Segment [Member] | Principal Forgiveness
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	0
Residential Portfolio Segment [Member] | Payment Delay
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	725
Residential Portfolio Segment [Member] | Extended Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 106
Financing Receivable Restructured Loans Not Considered TDRs Weighted Average Term Extension	11.6 years
Residential Portfolio Segment [Member] | Contractual Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0
Financing Receivable Restructured Loans Not Considered TDRs Weighted Average Interest Rate Reduction	2.00%
Residential Portfolio Segment [Member] | Term Extension and Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 58
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 15
Finance Receivable Percentage Of Class Of Loans And Leases	0.0000
Home equity | Principal Forgiveness
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	0
Home equity | Payment Delay
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	0
Home equity | Extended Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0
Financing Receivable Restructured Loans Not Considered TDRs Weighted Average Term Extension	22.6 years
Home equity | Contractual Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0
Financing Receivable Restructured Loans Not Considered TDRs Weighted Average Interest Rate Reduction	0.31%
Home equity | Term Extension and Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 15

XML

LOANS AND LEASES - Financial Difficulty Modifications, Payment Status (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Financing Receivable, Past Due [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0
Financial Asset, 1 to 29 Days Past Due
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	904
Financial Receivables, Financial Difficulty Modifications	904
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Residential Portfolio Segment [Member] | Financial Asset, 1 to 29 Days Past Due
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	889
Financial Receivables, Financial Difficulty Modifications	889
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Home equity | Financial Asset, 1 to 29 Days Past Due
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	15
Financial Receivables, Financial Difficulty Modifications	15
Home equity | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Home equity | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	0
Home equity | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financial Receivables, Financial Difficulty Modifications	0
Financial Receivables, Financial Difficulty Modifications	$ 0

XML

LOANS AND LEASES - Nonaccrual Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	$ 9,748		$ 11,908
Financing Receivable, Nonaccrual, No Allowance	24,832		16,715
Nonaccrual loans	34,580		28,623
Interest income effect
Gross amount of interest that would have been recorded under original terms	716	$ 773
Interest included in income
Nonaccrual loans	308	290
Troubled debt restructurings	0	51
Total interest included in income	308	341
Net impact on interest income	408	$ 432
Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	9,748		6,692
Financing Receivable, Nonaccrual, No Allowance	4,223		1,550
Nonaccrual loans	13,971		8,242
Lease financing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	0		0
Financing Receivable, Nonaccrual, No Allowance	175		178
Nonaccrual loans	175		178
Construction real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	0		0
Financing Receivable, Nonaccrual, No Allowance	0		0
Nonaccrual loans	0		0
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	0		5,216
Financing Receivable, Nonaccrual, No Allowance	5,362		570
Nonaccrual loans	5,362		5,786
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	0		0
Financing Receivable, Nonaccrual, No Allowance	11,129		10,691
Nonaccrual loans	11,129		10,691
Home equity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	0		0
Financing Receivable, Nonaccrual, No Allowance	3,399		3,123
Nonaccrual loans	3,399		3,123
Installment
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Nonaccrual, With Allowance	0		0
Financing Receivable, Nonaccrual, No Allowance	544		603
Nonaccrual loans	$ 544		$ 603

XML

LOANS AND LEASES - Collateral (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 10,433,385	$ 10,298,971
Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,054	8,205
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,331	3,752
Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	4,637	2,071
Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	118	119
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	14,548	13,836
Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	892	640
Total Collateral
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	34,580	28,623
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	13,971	8,242
Commercial | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,054	8,205
Commercial | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial | Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,569	0
Commercial | Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	348	37
Commercial real estate - investor
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	25	375
Commercial real estate - investor | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial real estate - investor | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5	353
Commercial real estate - investor | Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial real estate - investor | Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial real estate - investor | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	20	22
Commercial real estate - investor | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial Real Estate-Owner
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,337	5,411
Commercial Real Estate-Owner | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial Real Estate-Owner | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,326	3,399
Commercial Real Estate-Owner | Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,893	1,893
Commercial Real Estate-Owner | Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	118	119
Commercial Real Estate-Owner | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Commercial Real Estate-Owner | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,129	10,691
Residential real estate | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Residential real estate | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Residential real estate | Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Residential real estate | Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,129	10,691
Residential real estate | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Home Equity Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,399	3,123
Home Equity Loan | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Home Equity Loan | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Home Equity Loan | Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Home Equity Loan | Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Home Equity Loan | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,399	3,123
Home Equity Loan | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Installment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	544	603
Installment | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Installment | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Installment | Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Installment | Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Installment | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Installment | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	544	603
Lease financing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	175	178
Lease financing | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Lease financing | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Lease financing | Equipment
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	175	178
Lease financing | Land
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Lease financing | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	0	0
Lease financing | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 0	$ 0

XML

LOANS AND LEASES - Leasing (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Receivables [Abstract]
Direct Financing Lease, Lease Receivable	$ 31,978		$ 35,081
Direct Financing Lease, Unguaranteed Residual Asset	14,387		16,058
Sales-type Lease, Lease Receivable	227,533		184,985
Sales-type Lease, Unguaranteed Residual Asset	0		0
Net Investment in Lease, before Allowance for Credit Loss, Total	273,898		$ 236,124
Sales-type and Direct Financing Leases, Interest Income	$ 4,900	$ 500

XML

LOANS AND LEASES - Leasing Maturity (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Sales-Type and Direct Financing Leases, Lease Receivable, Payments to be Received, Fiscal Year Maturity [Abstract]
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Remainder of Fiscal Year	$ 51,984
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Two	63,846
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three	56,909
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Four	52,425
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Five	29,928
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, after Year Five	41,426
Sales-type and Direct Financing Leases, Lease Receivable	296,518
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount	(37,007)
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received	$ 259,511

XML

LOANS AND LEASES - Changes in Other Real Estate Owned (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	$ 191	$ 98
Additions	0	72
Disposals	0	(98)
Other Real Estate, Period Increase (Decrease)	0	0
Balance at end of period	191	72
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Additions	0	0
Disposals	0	(98)
Other Real Estate, Period Increase (Decrease)	0	0
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Additions	0	72
Disposals	0	0
Other Real Estate, Period Increase (Decrease)	$ 0	$ 0

XML

ALLOWANCE FOR CREDIT LOSSES - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	$ 132,977	$ 131,992
Provision for Credit Losses-loans and leases	8,644	(5,589)
Loans charged off	(2,641)	(3,442)
Recoveries	2,611	1,169
Total net charge-offs	(30)	(2,273)
Balance at end of year	141,591	124,130
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	42,313	44,052
Provision for Credit Losses-loans and leases	4,213	(3,803)
Loans charged off	(730)	(2,845)
Recoveries	109	379
Total net charge-offs	(621)	(2,466)
Balance at end of year	45,905	37,783
Lease financing
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	3,571	1,633
Provision for Credit Losses-loans and leases	391	558
Loans charged off	(13)	(131)
Recoveries	1	33
Total net charge-offs	(12)	(98)
Balance at end of year	3,950	2,093
Construction real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	13,527	11,874
Provision for Credit Losses-loans and leases	119	(464)
Loans charged off	0	0
Recoveries	0	0
Total net charge-offs	0	0
Balance at end of year	13,646	11,410
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	41,106	53,420
Provision for Credit Losses-loans and leases	(1,258)	(2,130)
Loans charged off	(66)	0
Recoveries	2,238	222
Total net charge-offs	2,172	222
Balance at end of year	42,020	51,512
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	12,684	6,225
Provision for Credit Losses-loans and leases	2,786	(141)
Loans charged off	0	(22)
Recoveries	66	90
Total net charge-offs	66	68
Balance at end of year	15,536	6,152
Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	12,447	9,643
Provision for Credit Losses-loans and leases	944	(211)
Loans charged off	(91)	(21)
Recoveries	80	265
Total net charge-offs	(11)	244
Balance at end of year	13,380	9,676
Installment
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	4,945	1,097
Provision for Credit Losses-loans and leases	1,218	134
Loans charged off	(1,524)	(177)
Recoveries	54	21
Total net charge-offs	(1,470)	(156)
Balance at end of year	4,693	1,075
Credit card
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of year	2,384	4,048
Provision for Credit Losses-loans and leases	231	468
Loans charged off	(217)	(246)
Recoveries	63	159
Total net charge-offs	154	87
Balance at end of year	$ 2,461	$ 4,429

XML

ALLOWANCE FOR CREDIT LOSSES- Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Receivables [Abstract]
Interest Receivable	$ 49,073		$ 47,500
Reserves for unfunded commitments	20,200		$ 18,400
Provision for credit losses-unfunded commitments	$ 1,835	$ (226)

XML

GOODWILL AND OTHER INTANGIBLE ASSETS--Schedule of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill [Roll Forward]
Balance at beginning of period	$ 1,001,507	$ 1,000,749
Goodwill	4,231	(790)
Balance at end of period	$ 1,005,738	$ 999,959

XML

GOODWILL AND OTHER INTANGIBLE ASSETS--Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended
	Dec. 31, 2021	Aug. 30, 2019	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill			$ 4,231	$ (790)
Other Depreciation and Amortization			3,300	3,700
Amortization of Mortgage Servicing Rights (MSRs)			$ 700	$ 800
Core deposits
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization method			accelerated basis
Estimated weighted average life (in years)			5 years
Customer lists
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization method			straight-line basis
Estimated weighted average life (in years)	12 years	11 years
Customer lists | Summit Funding Group
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net			$ 27,000		$ 27,600
Customer lists | Bannockburn [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net			$ 26,600		$ 27,500

XML

GOODWILL AND OTHER INTANGIBLE ASSETS--Schedule of Other Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 143,896	$ 146,739
Finite-Lived Intangible Assets, Accumulated Amortization	(52,727)	(52,820)
Servicing Asset	21,623	21,347
Core deposits
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	41,750	41,750
Finite-Lived Intangible Assets, Accumulated Amortization	(27,215)	(26,488)
Customer lists
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	69,563	69,563
Finite-Lived Intangible Assets, Accumulated Amortization	(15,981)	(14,457)
Other
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	10,960	14,079
Finite-Lived Intangible Assets, Accumulated Amortization	(4,253)	(7,064)
Servicing Contracts
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	$ (5,278)	$ (4,811)

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LEASES - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating Lease, Right-of-Use Asset	$ 53,200	$ 54,300
Operating Lease, Liability	$ 63,202	$ 64,500

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LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lease, Cost [Abstract]
Operating Lease, Cost	$ 1,914	$ 1,899
Short-term Lease, Cost	0	3
Variable Lease, Cost	758	739
Lease, Cost	$ 2,672	$ 2,641

XML

LEASES - Lease Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year	$ 5,746
Lessee, Operating Lease, Liability, to be Paid, Year One	7,359
Lessee, Operating Lease, Liability, to be Paid, Year Two	7,052
Lessee, Operating Lease, Liability, to be Paid, Year Three	6,782
Lessee, Operating Lease, Liability, to be Paid, Year Four	6,224
Lessee, Operating Lease, Liability, to be Paid, after Year Five	46,828
Lessee, Operating Lease, Liability, to be Paid	79,991
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(16,789)
Operating Lease, Liability	$ 63,202	$ 64,500

XML

LEASES - Schedule of supplemental balance sheet information related to assets (Details)	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	13 years	13 years 1 month 6 days
Operating Lease, Weighted Average Discount Rate, Percent	3.30%	3.29%

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LEASES - Supplemental cash flow information related to leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating cash flows from operating leases	$ 1,970	$ 1,942
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 501	$ 2,001

XML

OPERATING LEASES - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Leases [Abstract]
Operating leases	$ 153,986		$ 91,738
Property, Plant, and Equipment, Lessor Asset under Operating Lease, Accumulated Depreciation	42,200		$ 35,000
Operating Lease, Lease Income, Lease Payments	10,200	$ 4,700
Depreciation, Lessor Asset under Operating Lease	7,900	$ 3,900
Impairment, Lessor Asset under Operating Lease	$ 0

XML

OPERATING LEASES - Maturity Table (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Lessor, Operating Lease, Payment to be Received, Remainder of Fiscal Year	$ 26,638
Lessor, Operating Lease, Payment to be Received, Year Two	30,263
Lessor, Operating Lease, Payment to be Received, Year Three	21,311
Lessor, Operating Lease, Payment to be Received, Year Four	13,299
Lessor, Operating Lease, Payment to be Received, Year Five	5,297
Lessor, Operating Lease, Payment to be Received, after Year Five	2,009
Lessor, Operating Lease, Payments to be Received	$ 98,817

XML

BORROWINGS - Schedule of Short-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Short-term Debt	$ 1,217,560	$ 1,287,156
Other Short-term Borrowings	128,160	157,156
Federal Home Loan Bank Borrowings
Short-term Debt [Line Items]
Short-term Debt	1,089,400	1,130,000
Short-term Debt
Short-term Debt [Line Items]
Short-term Debt	128,160	157,156
Other Short-term Borrowings	$ 0	$ 0

XML

BORROWINGS - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amount
Subordinated debt	$ 313,820	$ 313,705
Unamortized debt issuance costs	(1,902)	(1,998)
Other Notes Payable, Noncurrent	28,277	32,492
Finance Lease, Liability	1,677	1,698
Capital loan with municipality	775	775
Total long-term debt	$ 342,647	$ 346,672
Average Rate
Debt, Weighted Average Interest Rate	5.52%	5.48%
Other Notes payable interest rate	4.42%	4.44%
Lessee, Finance Lease, Discount Rate	3.83%	3.82%
Weighted average rate on other long-term debt	0.00%	0.00%
Total long-term debt	5.44%	5.40%

XML

BORROWINGS Borrowings - - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Apr. 01, 2018
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned	$ 0	$ 0
Federal Funds Purchased	0	0
FHLB short-term borrowings	1,089,400	1,130,000
Line of Credit Facility, Maximum Borrowing Capacity	40,000
Short-term Debt	1,217,560	1,287,156
Long-term Debt	342,647	346,672
Convertible Subordinated Debt	$ 150,000
Subordinated Borrowing, Interest Rate	5.13%
Debt Instrument, Basis Spread on Variable Rate	5.09%
Subordinated debt	$ 120,000
Subordinated debt	$ 313,820	$ 313,705
Debt, Weighted Average Interest Rate	5.52%	5.48%
Weighted average rate on other long-term debt	0.00%	0.00%
Short-term Debt
Short-term Debt	$ 128,160	$ 157,156
Long-term Debt [Member]
Subordinated Borrowing, Interest Rate	5.25%
Subordinated Debt [Member]
Subordinated debt	$ 43,800	$ 43,700	$ 49,500
Debt Instrument Maturity Period	30 years
DebtInstrumentMinimumCallablePeriod	5 years

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Other Comprehensive Income (Loss), before Reclassification Adjustments and Tax [Abstract]
Unrealized gain (loss) on investment securities	$ 39,617	$ (182,479)
Retirement obligation	0	0
Foreign currency translation	4	11
Total	39,621	(182,468)
Other Comprehensive Income (Loss) Reclassifications before Tax [Abstract]
Realized gain (loss) on securities available-for-sale	519	(3)
Retirement obligation	(150)	(325)
Foreign currency translation	0	0
Total	369	(328)
Transactions Pre-tax
Unrealized gain (loss) on investment securities	39,098	(182,476)
Unfunded pension obligation	150	325
Foreign currency translation	4	11
Total	39,252	(182,140)
Transactions Tax-effect
Unrealized gain (loss) on investment securities	(8,613)	40,075
Retirement obligation	(35)	21
Foreign currency translation	0	0
Total	(8,648)	40,096
Transactions Net of tax
Unrealized gain (loss) on investment securities	30,485	(142,401)
Retirement obligation	115	346
Foreign currency translation	4	11
Total	30,604	(142,044)
Balances Net of tax
Unrealized gain (loss) on investment securities	(295,440)	(121,363)	$ (325,925)	$ 21,038
Retirement obligation	(31,908)	(20,500)	(32,023)	(20,846)
Foreign currency translation	(711)	(614)	(715)	(625)
Total	(328,059)	(142,477)	$ (358,663)	$ (433)
Accumulated other comprehensive income (loss)
Transactions Net of tax
Total	$ 30,604	$ (142,044)

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AMOUNT RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Accumulated Comprehensive income reclassified from AOCI [Line Items]
Realized gain (loss) on securities available-for-sale	$ 519	$ (3)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	0	75
Defined Benefit Plan, Amortization of Gain (Loss)	(150)	(400)
Other Comprehensive Income, Reclassification, Amortization of Defined Benefit Plans items, Pre-tax	(150)	(325)
Total	$ 369	$ (328)

XML

DERIVATIVES - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) entity	Dec. 31, 2022 USD ($) entity
Derivative [Line Items]
Derivative, Notional Amount	$ 20,305,538	$ 19,828,103
Number of counterparties | entity	6	6
Derivative liabilities	$ 301,938	$ 357,698
Derivative Liability, Fair Value of Collateral, net of restricted cash	102,100	132,200
Derivative Liability, Fair Value of Collateral	128,200	157,200
Restricted Cash	$ 26,100	$ 25,000
Foreign Exchange
Derivative [Line Items]
Number of counterparties | entity	5	5
Credit Risk Contract [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 386,800	$ 379,300
Interest Rate Lock Commitments [Member]
Derivative [Line Items]
Derivative, Notional Amount	32,000	12,000
Other Credit Derivatives [Member]
Derivative [Line Items]
Derivative, Notional Amount	27,500	15,300
Credit Risk Derivative Liabilities, at Fair Value	500
Credit Risk Derivative Assets, at Fair Value		(4,300)
Derivative
Derivative [Line Items]
Derivative liabilities	107,700	145,800
Derivative | Foreign Exchange
Derivative [Line Items]
Derivative, Notional Amount		7,700,000
Derivative liabilities	21,500	17,300
Accrued interest and other liabilities | Derivative
Derivative [Line Items]
Derivative, Notional Amount	2,200,000	$ 2,200,000
Accrued interest and other liabilities | Derivative | Foreign Exchange
Derivative [Line Items]
Derivative, Notional Amount	$ 7,900,000

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DERIVATIVES - Summary of Derivative Financial Instruments and Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 20,305,538	$ 19,828,103
Derivative Asset	301,938	357,698
Derivative liabilities	301,938	357,698
Derivative Asset, Subject to Master Netting Arrangement, before Offset of Collateral	(39,838)	(58,295)
Gross amounts of recognized liabilities	301,938	357,698
Derivative Liability, Fair Value, Gross Asset	(341,776)	(415,993)
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other assets
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	2,248,403	2,206,351
Derivative Asset	10,458	5,057
Derivative liabilities	114,269	147,759
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	2,248,403	2,206,351
Derivative Asset	114,269	147,759
Derivative liabilities	10,458	5,057
Derivative Asset, Subject to Master Netting Arrangement, before Offset of Collateral	(127,424)	(161,232)
Gross amounts of recognized liabilities	124,727	152,816
Derivative Liability, Fair Value, Gross Asset	(252,151)	(314,048)
Foreign Exchange | Matched interest rate swaps | Accrued interest and other assets
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	7,927,466	7,734,395
Derivative Asset	99,348	111,078
Derivative liabilities	77,863	93,804
Foreign Exchange | Matched interest rate swaps | Accrued interest and other liabilities
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	7,881,266	7,681,006
Derivative Asset	77,863	93,804
Derivative liabilities	$ 99,348	$ 111,078

XML

DERIVATIVES - Disclosure by Type of Financial Instrument (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Gross amounts of recognized liabilities	$ 301,938	$ 357,698
Derivative Liability, Fair Value, Gross Asset	(341,776)	(415,993)
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	(39,838)	(58,295)
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities
Derivatives, Fair Value [Line Items]
Gross amounts of recognized liabilities	124,727	152,816
Derivative Liability, Fair Value, Gross Asset	(252,151)	(314,048)
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	(127,424)	(161,232)
Fair Value Hedges | Foreign Exchange | Accrued interest and other liabilities
Derivatives, Fair Value [Line Items]
Gross amounts of recognized liabilities	177,211	204,882
Derivative Liability, Fair Value, Gross Asset	(89,625)	(101,945)
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	$ 87,586	$ 102,937

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DERIVATIVES - Derivative Financial Instruments, Average Remaining Maturity and the Weighted-Average Interest Rates being Paid and Received (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Derivative, Notional Amount	$ 20,305,538	$ 19,828,103
Average Maturity (years)	1 year 7 months 6 days
Fair Value	$ 0
Interest Rate Swap | Derivative Financial Instruments Receive Fixed Pay Variable
Derivative [Line Items]
Derivative, Notional Amount	$ 2,248,403
Average Maturity (years)	5 years 2 months 12 days
Fair Value	$ (103,811)
Interest Rate Swap | Derivative Financial Instruments Receive Variable Pay Fixed
Derivative [Line Items]
Derivative, Notional Amount	$ 2,248,403
Average Maturity (years)	5 years 2 months 12 days
Fair Value	$ 103,811
Foreign Exchange | Derivative Financial Instruments Receive Fixed Pay Variable
Derivative [Line Items]
Derivative, Notional Amount	$ 7,927,466
Average Maturity (years)	7 months 6 days
Fair Value	$ 21,485
Foreign Exchange | Derivative Financial Instruments Receive Variable Pay Fixed
Derivative [Line Items]
Derivative, Notional Amount	$ 7,881,266
Average Maturity (years)	7 months 6 days
Fair Value	$ (21,485)

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COMMITMENTS AND CONTINGENCIES - Loan and Unfunded Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Commitments [Line Items]
Unused Commitments to Extend Credit	$ 3,968,309	$ 3,904,732
Loans and Leases Receivable, Net of Deferred Income	10,433,385	10,298,971
Commercial
Other Commitments [Line Items]
Unused Commitments to Extend Credit	1,868,883	1,833,977
Loans and Leases Receivable, Net of Deferred Income	3,449,289	3,410,272
Lease financing
Other Commitments [Line Items]
Unused Commitments to Extend Credit	6,847	6,842
Loans and Leases Receivable, Net of Deferred Income	273,898	236,124
Construction real estate
Other Commitments [Line Items]
Unused Commitments to Extend Credit	704,719	689,015
Loans and Leases Receivable, Net of Deferred Income	525,906	512,050
Commercial real estate - investor
Other Commitments [Line Items]
Unused Commitments to Extend Credit	107,150	107,205
Loans and Leases Receivable, Net of Deferred Income	3,102,445	3,094,064
Commercial real estate-owner
Other Commitments [Line Items]
Unused Commitments to Extend Credit	35,040	48,208
Loans and Leases Receivable, Net of Deferred Income	954,182	958,695
Residential real estate
Other Commitments [Line Items]
Unused Commitments to Extend Credit	76,860	74,089
Loans and Leases Receivable, Net of Deferred Income	1,145,069	1,092,265
Home equity
Other Commitments [Line Items]
Unused Commitments to Extend Credit	929,440	903,459
Loans and Leases Receivable, Net of Deferred Income	724,672	733,791
Installment
Other Commitments [Line Items]
Unused Commitments to Extend Credit	20,791	16,073
Loans and Leases Receivable, Net of Deferred Income	204,372	209,895
Credit card
Other Commitments [Line Items]
Unused Commitments to Extend Credit	218,579	225,864
Loans and Leases Receivable, Net of Deferred Income	$ 53,552	$ 51,815

XML

COMMITMENTS AND CONTINGENCIES - Investment holdings schedule (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Summary of Investment Holdings [Line Items]
Amortization Method Qualified Affordable Housing Project Investments	$ 168,674		$ 158,440
Qualified Affordable Housing Project Investments, Commitment	94,319		84,334
Amortization Method Qualified Affordable Housing Project Investments, Amortization	3,431	$ 3,152
Affordable Housing Tax Credits and Other Tax Benefits, Amount	(3,673)	(3,092)
Low Income Housing Tax Credits
Summary of Investment Holdings [Line Items]
Amortization Method Qualified Affordable Housing Project Investments	124,454		126,537
Qualified Affordable Housing Project Investments, Commitment	69,356		70,690
Amortization Method Qualified Affordable Housing Project Investments, Amortization	3,327	3,048
Affordable Housing Tax Credits and Other Tax Benefits, Amount	(3,540)	(2,959)
Historic tax credit [Member]
Summary of Investment Holdings [Line Items]
Amortization Method Qualified Affordable Housing Project Investments	17,108		17,108
Qualified Affordable Housing Project Investments, Commitment	11,955		11,955
Amortization Method Qualified Affordable Housing Project Investments, Amortization	0	0
Affordable Housing Tax Credits and Other Tax Benefits, Amount	(80)	(80)
New Markets Tax Credit
Summary of Investment Holdings [Line Items]
Amortization Method Qualified Affordable Housing Project Investments	2,695		2,944
Qualified Affordable Housing Project Investments, Commitment	0		0
Amortization Method Qualified Affordable Housing Project Investments, Amortization	104	104
Affordable Housing Tax Credits and Other Tax Benefits, Amount	(53)	(53)
Renewable Energy Program
Summary of Investment Holdings [Line Items]
Amortization Method Qualified Affordable Housing Project Investments	24,417		11,851
Qualified Affordable Housing Project Investments, Commitment	13,008		$ 1,689
Amortization Method Qualified Affordable Housing Project Investments, Amortization	0	0
Affordable Housing Tax Credits and Other Tax Benefits, Amount	$ 0	$ 0

XML

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Line Items]
Reserves for unfunded commitments	$ 20,200		$ 18,400
Loans and Leases Receivable, Commitments, Fixed Rates	111,100		126,300
Loans and Leases Receivable, Commitments, Variable Rates	$ 4,500,000		$ 4,200,000
Loan Commitments, Fixed Interest Rate Range, Minimum	0.00%		0.00%
Loan Commitments, Fixed Interest Rate Range, Maximum	21.00%		21.00%
Loan Commitments, Fixed Rate, Maturities, Minimum	1 year		1 year
Loan Commitments, Fixed Rate, Maturities, Maximum	31 years		31 years 7 months 6 days
Letters of credit issued to guarantee performance of a client to a third party	$ 32,200		$ 31,500
Derivative, Notional Amount	20,305,538		19,828,103
Litigation Settlement, Expense	0	$ 3,300
Estimated Litigation Liability	0		0
Credit Default Swap
Commitments and Contingencies Disclosure [Line Items]
Derivative, Notional Amount	386,800		379,300
Commitments to Extend Credit
Commitments and Contingencies Disclosure [Line Items]
Commitments outstanding to extend credit	$ 4,600,000		$ 4,400,000

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ 17,286	$ 9,348
Effective tax rate	19.70%	18.50%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 1,900		$ 1,900
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 0		$ 0

XML

EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year	$ 0
Payment for Pension Benefits	$ 0	$ 0

XML

EMPLOYEE BENEFIT PLANS - Employee benefit plan amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Retirement Benefits [Abstract]
Service cost	$ 2,350	$ 2,425
Interest cost	1,075	625
Expected return on plan assets	(2,700)	(2,750)
Amortization of prior service cost	0	(75)
Defined Benefit Plan, Amortization of Gain (Loss)	150	400
Net periodic benefit cost (income)	$ 875	$ 625

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REVENUE RECOGNITION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition [Abstract]
Interchange income	$ 7.2	$ 6.9
Credit card expense	$ 3.6	$ 3.6

XML

EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator for basic and diluted earnings per share -income available to common shareholders:
Net income	$ 70,403	$ 41,301
Denominator for basic earnings per share - weighted average shares	93,732,532	93,383,932
Effect of dilutive securities -
Employee stock awards	1,227,626	879,993
Denominator for diluted earnings per share - adjusted weighted average shares	94,960,158	94,263,925
Basic	$ 0.75	$ 0.44
Diluted	$ 0.74	$ 0.44

XML

EARNINGS PER COMMON SHARE - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Stock Options
Earnings Per Share Disclosure [Line Items]
Stock options and warrants with an exercise price greater than the average market price of the common shares not included in the computation of net income per diluted share	0	0

XML

FAIR VALUE DISCLOSURES - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial assets
Investment securities held-to-maturity	$ 83,070	$ 84,021
Other investments	143,606	143,160
Loans held for sale	9,300	7,900
Interest Receivable	49,073	47,500
Deposits
Noninterest-bearing	3,830,102	4,135,180
Savings	3,746,403	3,828,139
Time	2,336,368	1,700,705
Impaired Commercial And Commercial Real Estate Loans Member
Deposits
Principal Amount of Commercial and Commercial Real Estate Loans	9,700	11,900
Allowance for Loan and Lease Losses, Real Estate	4,000	3,700
Carrying value
Financial assets
Cash and short-term investments	505,300	595,683
Investment securities held-to-maturity	83,070	84,021
Other investments	143,606	143,160
Loans and leases	10,291,794	10,165,994
Interest Receivable	65,006	63,721
Deposits
Deposits	12,674,684	12,701,177
Short-term borrowings	1,217,560	1,287,156
Long-term debt	342,647	346,672
Interest Payable	29,896	11,150
Fair value
Financial assets
Cash and short-term investments	505,300	595,683
Investment securities held-to-maturity	75,762	76,485
Other investments	143,606	143,160
Loans and leases	9,923,707	9,916,353
Interest Receivable	65,006	63,721
Deposits
Deposits	12,644,951	12,670,747
Short-term borrowings	1,217,560	1,287,156
Long-term debt	344,131	348,041
Interest Payable	29,896	11,150
Fair Value, Inputs, Level 1 [Member] | Fair value
Financial assets
Cash and short-term investments	505,300	595,683
Investment securities held-to-maturity	0	0
Other investments	1,076	1,171
Loans and leases	0	0
Interest Receivable	0	0
Deposits
Deposits	0	0
Short-term borrowings	1,217,560	1,287,156
Long-term debt	0	0
Interest Payable	8,671	3,835
Fair Value, Inputs, Level 2 [Member] | Fair value
Financial assets
Cash and short-term investments	0	0
Investment securities held-to-maturity	75,762	76,485
Other investments	133,159	132,853
Loans and leases	0	0
Interest Receivable	15,933	16,233
Deposits
Deposits	12,644,951	12,670,747
Short-term borrowings	0	0
Long-term debt	344,131	348,041
Interest Payable	21,225	7,315
Fair Value, Inputs, Level 3 [Member] | Fair value
Financial assets
Cash and short-term investments	0	0
Investment securities held-to-maturity	0	0
Other investments	9,371	9,136
Loans and leases	9,923,707	9,916,353
Interest Receivable		47,488
Deposits
Deposits	0	0
Short-term borrowings	0	0
Long-term debt	0	0
Interest Payable	$ 0	$ 0

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FAIR VALUE DISCLOSURES - Summary of Financial Assets and Liabilities Measure at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Assets
Investment securities available-for-sale	$ 3,384,949		$ 3,409,648
Loans Held-for-sale, Fair Value Disclosure	9,300		7,900
Derivative Asset	301,938		357,698
Liabilities
Derivative liabilities	301,938		357,698
Fair Value, Option, Changes in Fair Value, Gain (Loss)	500	$ (1,300)
Financing Receivable, Held-for-Sale	8,400		7,500
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	900		400
Fair Value, Measurements, Recurring
Assets
Investment securities available-for-sale	3,384,949		3,409,648
Derivative Asset			152,846
Total	3,696,205		3,775,294
Liabilities
Total	302,006		358,001
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Fair value
Assets
Loans Held-for-sale, Fair Value Disclosure	0		0
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1
Assets
Investment securities available-for-sale	33,421		32,696
Derivative Asset			0
Total	33,421		32,696
Liabilities
Total	0		0
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Fair value
Assets
Loans Held-for-sale, Fair Value Disclosure	9,280		7,918
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2
Assets
Investment securities available-for-sale	3,316,713		3,341,095
Derivative Asset			152,846
Total	3,627,969		3,706,741
Liabilities
Total	302,006		358,001
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Fair value
Assets
Loans Held-for-sale, Fair Value Disclosure	0		0
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3
Assets
Investment securities available-for-sale	34,815		35,857
Derivative Asset			0
Total	34,815		35,857
Liabilities
Total	0		0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1, 2 and 3
Assets
Loans Held-for-sale, Fair Value Disclosure	9,280		7,918
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring
Assets
Derivative Asset	124,765
Liabilities
Derivative liabilities	124,795		153,119
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1
Assets
Derivative Asset	0
Liabilities
Derivative liabilities	0		0
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2
Assets
Derivative Asset	124,765
Liabilities
Derivative liabilities	124,795		153,119
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3
Assets
Derivative Asset	0
Liabilities
Derivative liabilities	0		0
Foreign Exchange | Fair Value, Measurements, Recurring
Assets
Derivative Asset	177,211		204,882
Liabilities
Derivative liabilities	177,211		204,882
Foreign Exchange | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1
Assets
Derivative Asset	0		0
Liabilities
Derivative liabilities	0		0
Foreign Exchange | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2
Assets
Derivative Asset	177,211		204,882
Liabilities
Derivative liabilities	177,211		204,882
Foreign Exchange | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3
Assets
Derivative Asset	0		0
Liabilities
Derivative liabilities	$ 0		$ 0

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FAIR VALUE DISCLOSURES - Reconciliation of Gains and Losses on Level 3 Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Beginning balance	$ 35,857	$ 38,181
Accretion (amortization)	(25)	(13)
Increase (decrease) in fair value	12	13
Settlements	(1,029)	(720)
Ending balance	$ 34,815	$ 37,461

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FAIR VALUE DISCLOSURES - Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Assets
Fair Value, Option, Changes in Fair Value, Gain (Loss)	$ 500	$ (1,300)
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 1 | Other real estate owned
Assets
Assets, Fair Value Disclosure	0		$ 0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 1 | Fair value | Operating lease
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 1 | Commercial | Fair value
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 1 | Commercial real estate | Fair value
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 2 | Other real estate owned
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 2 | Fair value | Operating lease
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 2 | Commercial | Fair value
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 2 | Commercial real estate | Fair value
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | Other real estate owned
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | Fair value | Operating lease
Assets
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | Commercial | Fair value
Assets
Assets, Fair Value Disclosure	5,760		4,240
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | Commercial real estate | Fair value
Assets
Assets, Fair Value Disclosure	$ 0		$ 4,015

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BUSINESS COMBINATION - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	$ 941	$ 238

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BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Cash consideration	$ 3,400	$ 0
Total liabilities assumed	$ 941	$ 238