10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended September 30, 2023

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

For the transition period from                    to                   

Commission File Number 0-16759

FIRST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Indiana	35-1546989
(State or other jurisdiction	(I.R.S. Employer
incorporation or organization)	Identification No.)
One First Financial Plaza, Terre Haute, IN	47807
(Address of principal executive office)	(Zip Code)
(812)	238-6000
(Registrant’s telephone number, including area code)

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, par value $0.125 per share	THFF	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 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T 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, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☑
Non-accelerated filer (Do not check if a smaller reporting company)	☐	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 7(a)(2)(B) of the Securities Act.  ☐

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

Yes ☐ No ☑.

As of November 1, 2023, the registrant had outstanding 11,754,528 shares of common stock, without par value.

FIRST FINANCIAL CORPORATION

FORM 10-Q

INDEX

	Page No.
PART I. Financial Information
Item 1. Financial Statements:
Consolidated Balance Sheets	3
Consolidated Statements of Income and Comprehensive Income (Loss)	4
Consolidated Statements of Shareholders’ Equity	5
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3. Quantitative and Qualitative Disclosures about Market Risk	34
Item 4. Controls and Procedures	40
PART II. Other Information:
Item 1. Legal Proceedings	41
Item 1A. Risk Factors	41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3. Defaults upon Senior Securities	42
Item 4. Mine Safety Disclosures	42
Item 5. Other Information	42
Item 6. Exhibits	43
Signatures	44

2

Part I – Financial Information

Item 1.Financial Statements

FIRST FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share data)

	September 30,		December 31,
	2023		2022
	(unaudited)
ASSETS
Cash and due from banks	$	74,668	$	222,517
Federal funds sold		688		9,374
Securities available-for-sale		1,225,219		1,330,481
Loans:
Commercial		1,775,004		1,798,260
Residential		687,069		673,464
Consumer		647,658		588,539
		3,109,731		3,060,263
(Less) plus:
Net deferred loan (fees)/costs		7,895		7,175
Allowance for credit losses		(39,034)		(39,779)
		3,078,592		3,027,659
Restricted stock		15,398		15,378
Accrued interest receivable		22,546		21,288
Premises and equipment, net		67,424		66,147
Bank-owned life insurance		113,684		115,704
Goodwill		86,985		86,985
Other intangible assets		5,816		6,714
Other real estate owned		63		337
Other assets		93,723		86,697
TOTAL ASSETS	$	4,784,806	$	4,989,281
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	770,511	$	857,920
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		82,741		50,608
Other interest-bearing deposits		3,187,743		3,460,343
		4,040,995		4,368,871
Short-term borrowings		132,734		70,875
Other borrowings		84,578		9,589
Other liabilities		56,331		64,653
TOTAL LIABILITIES		4,314,638		4,513,988
Shareholders’ equity
Common stock, $0.125 stated value per share; Authorized shares - 40,000,000; Issued shares-16,137,220 in 2023 and 16,114,992 in 2022; Outstanding shares - 11,754,528 in 2023 and 12,051,964 in 2022		2,014		2,012
Additional paid-in capital		143,855		143,185
Retained earnings		656,610		614,829
Accumulated other comprehensive loss		(176,038)		(139,974)
Less: Treasury shares at cost - 4,382,692 in 2023 and 4,063,028 in 2022		(156,273)		(144,759)
TOTAL SHAREHOLDERS’ EQUITY		470,168		475,293
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,784,806	$	4,989,281

See accompanying notes.

3

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

(Dollar amounts in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME:
Loans, including related fees	$	49,146	$	38,021	$	140,220	$	104,683
Securities:
Taxable		6,164		5,498		18,631		14,839
Tax-exempt		2,661		2,562		7,937		7,402
Other		752		2,165		2,864		4,178
TOTAL INTEREST INCOME		58,723		48,246		169,652		131,102
INTEREST EXPENSE:
Deposits		13,627		4,644		35,111		8,793
Short-term borrowings		1,923		418		4,025		676
Other borrowings		2,023		80		2,844		249
TOTAL INTEREST EXPENSE		17,573		5,142		41,980		9,718
NET INTEREST INCOME		41,150		43,104		127,672		121,384
Provision for credit losses		1,200		1,050		4,800		(4,750)
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES		39,950		42,054		122,872		126,134
NON-INTEREST INCOME:
Trust and financial services		1,140		1,015		3,642		3,687
Service charges and fees on deposit accounts		7,099		6,965		20,971		20,698
Other service charges and fees		213		160		613		488
Securities gains, net		—		—		—		5
Interchange income		—		149		47		418
Loan servicing fees		447		457		997		1,184
Gain on sales of mortgage loans		321		440		811		1,705
Other		2,407		2,954		4,374		7,963
TOTAL NON-INTEREST INCOME		11,627		12,140		31,455		36,148
NON-INTEREST EXPENSE:
Salaries and employee benefits		17,159		15,943		51,263		48,953
Occupancy expense		2,389		2,525		7,120		7,419
Equipment expense		3,580		3,311		10,404		9,177
FDIC Expense		613		556		1,977		1,526
Other		8,524		9,169		25,168		26,447
TOTAL NON-INTEREST EXPENSE		32,265		31,504		95,932		93,522
INCOME BEFORE INCOME TAXES		19,312		22,690		58,395		68,760
Provision for income taxes		3,027		4,639		10,143		14,172
NET INCOME		16,285		18,051		48,252		54,588
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		(34,934)		(41,060)		(36,504)		(165,893)
Change in funded status of post retirement benefits, net of taxes		146		315		440		944
COMPREHENSIVE INCOME (LOSS)	$	(18,503)	$	(22,694)	$	12,188	$	(110,361)
PER SHARE DATA
Basic and Diluted Earnings per Share	$	1.37	$	1.50	$	4.02	$	4.45
Weighted average number of shares outstanding (in thousands)		11,901		12,029		11,993		12,270

See accompanying notes.

4

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Three Months Ended

September 30, 2023, and 2022

(Dollar amounts in thousands, except per share data)

(Unaudited)

							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Capital		Earnings		Income/(Loss)		Stock		Total
Balance, July 1, 2022	$	2,011	$	142,390	$	589,169	$	(126,630)	$	(145,409)	$	461,531
Net income		—		—		18,051		—		—		18,051
Other comprehensive income (loss)		—		—		—		(40,745)		—		(40,745)
Omnibus Equity Incentive Plan		—		206		—		—		—		206
Treasury shares purchased (9,125 shares)		—		—		—		—		(417)		(417)
Balance, September 30, 2022	$	2,011	$	142,596	$	607,220	$	(167,375)	$	(145,826)	$	438,626
Balance, July 1, 2023	$	2,013	$	143,632	$	640,325	$	(141,250)	$	(147,832)	$	496,888
Net income		—		—		16,285		—		—		16,285
Other comprehensive income (loss)		—		—		—		(34,788)		—		(34,788)
Omnibus Equity Incentive Plan		1		223		—		—		—		224
Treasury shares purchased (228,457 shares)		—		—		—		—		(8,441)		(8,441)
Balance, September 30, 2023	$	2,014	$	143,855	$	656,610	$	(176,038)	$	(156,273)	$	470,168

See accompanying notes.

5

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Nine Months Ended

September 30, 2023, and 2022

(Dollar amounts in thousands, except per share data)

(Unaudited)

							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Capital		Earnings		Income/(Loss)		Stock		Total
Balance, January 1, 2022	$	2,009	$	141,979	$	559,139	$	(2,426)	$	(118,125)	$	582,576
Net income		—		—		54,588		—		—		54,588
Other comprehensive income (loss)		—		—		—		(164,949)		—		(164,949)
Omnibus Equity Incentive Plan		2		617		—		—		—		619
Treasury shares purchased (626,574 shares)		—		—		—		—		(27,701)		(27,701)
Cash dividends, $.54 per share		—		—		(6,507)		—		—		(6,507)
Balance, September 30, 2022	$	2,011	$	142,596	$	607,220	$	(167,375)	$	(145,826)	$	438,626
Balance, January 1, 2023	$	2,012	$	143,185	$	614,829	$	(139,974)	$	(144,759)	$	475,293
Net income		—		—		48,252		—		—		48,252
Other comprehensive income (loss)		—		—		—		(36,064)		—		(36,064)
Omnibus Equity Incentive Plan		2		670		—		—		—		672
Treasury shares purchased (319,664 shares)		—		—		—		—		(11,514)		(11,514)
Cash dividends, $.54 per share		—		—		(6,471)		—		—		(6,471)
Balance, September 30, 2023	$	2,014	$	143,855	$	656,610	$	(176,038)	$	(156,273)	$	470,168

6

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands, except per share data)

	Nine Months Ended
	September 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	48,252	$	54,588
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments		3,817		5,174
Provision for credit losses		4,800		(4,750)
Securities gains		—		(5)
Depreciation and amortization		4,903		4,615
Restricted stock compensation		672		619
Gain on sale of mortgage loans		(811)		(1,705)
(Gain) Loss on sale of other real estate		26		26
Other, net		4,534		(6,266)
NET CASH FROM OPERATING ACTIVITIES		66,193		52,296
CASH FLOWS FROM INVESTING ACTIVITIES:
Calls, maturities and principal reductions on securities available-for-sale		83,640		141,274
Purchases of securities available-for-sale		(29,650)		(329,564)
Proceeds from loans sold previously classified as portfolio loans		—		12,802
Loans made to customers, net of repayment		(54,314)		(168,558)
Net change in federal funds sold		8,686		(7,915)
Redemption of restricted stock		—		1,871
Purchase of restricted stock		(20)		(1,043)
Proceeds from sales of other real estate owned		270		223
Additions to premises and equipment		(5,282)		(2,206)
NET CASH FROM INVESTING ACTIVITIES		3,330		(353,116)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits		(327,334)		(1,150)
Net change in short-term borrowings		61,859		(4,053)
Dividends paid		(15,383)		(14,459)
Purchase of treasury stock		(11,514)		(27,701)
Proceeds from other borrowings		1,430,000		—
Maturities of other borrowings		(1,355,000)		(6,402)
NET CASH FROM FINANCING ACTIVITIES		(217,372)		(53,765)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(147,849)		(354,585)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD		222,517		682,807
CASH AND DUE FROM BANKS, END OF PERIOD	$	74,668	$	328,222

See accompanying notes.

7

FIRST FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The accompanying September 30, 2023 and 2022 consolidated financial statements are unaudited. The December 31, 2022 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2022 annual report. The information presented does not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The following notes should be read together with notes to the consolidated financial statements included in the 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2022.

1.    Significant Accounting Policies

The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. For the nine months ended 2023 and 2022, 22,228 and 18,679 shares were awarded, respectively. These shares had a grant date value of $1.0 million and $847 thousand for 2023 and 2022, vest over three years, and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded.

2.    New accounting standards

Accounting Pronouncements Adopted:

In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (ASU 2022-02). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (TDRs) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (CECL) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Corporation for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Corporation adopted ASU 2022-02 on January 1, 2023, and has applied the disclosure changes in this document. See Note 3. Allowance for Credit Losses for the additional disclosures.

Recent Accounting Pronouncements:

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 is effective for the Corporation for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption is permitted. The Corporation is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements and related disclosures.

In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASU) No. 2023-02 “Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow 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. This guidance is effective for public business entities for fiscal years including interim periods within those fiscal years, beginning after December 15, 2023. Early

8

adoption is permitted in any interim period. The Corporation is evaluating ASU 2023-02 and its effect on its consolidated financial statements and related disclosures.

3.    Allowance for Credit Losses

The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended September 30.

Allowance for Credit Losses:			September 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907
Provision for credit losses		(199)		(747)		2,303		(157)		1,200
Loans charged-off		(187)		(50)		(3,364)		—		(3,601)
Recoveries		177		67		1,284		—		1,528
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	16,469	$	14,168	$	10,584	$	247	$	41,468
Provision for credit losses		(1,403)		297		2,199		(43)		1,050
Loans charged-off		(2,406)		(57)		(3,190)		—		(5,653)
Recoveries		634		55		1,941		—		2,630
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

The following table presents the activity of the allowance for credit losses by portfolio segment for the nine months ended September 30.

Allowance for Credit Losses:			September 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,949	$	14,568	$	12,104	$	158	$	39,779
Provision for credit losses		(630)		(81)		5,290		221		4,800
Loans charged -off		(702)		(192)		(10,626)		—		(11,520)
Recoveries		624		243		5,108		—		5,975
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	18,883	$	18,316	$	10,721	$	385	$	48,305
Provision for credit losses		(3,835)		(3,952)		3,218		(181)		(4,750)
Loans charged -off		(3,659)		(579)		(7,080)		—		(11,318)
Recoveries		1,905		678		4,675		—		7,258
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

9

The tables below present the recorded investment in non-performing loans by class of loans.

	September 30, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	20	$	1,566	$	900
Farmland		—		1,677		1,662
Non Farm, Non Residential		—		1,293		1,291
Agriculture		—		1,115		1,103
All Other Commercial		—		21		—
Residential
First Liens		1,177		933		—
Home Equity		71		70		—
Junior Liens		137		200		—
Multifamily		—		548		373
All Other Residential		—		436		—
Consumer
Motor Vehicle		—		3,092		—
All Other Consumer		—		263		—
TOTAL	$	1,405	$	11,214	$	5,329

	December 31, 2022
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	114	$	2,137	$	254
Farmland		—		461		—
Non Farm, Non Residential		—		2,064		2,052
Agriculture		—		186		155
All Other Commercial		—		26		—
Residential
First Liens		666		1,380		—
Home Equity		180		133		—
Junior Liens		197		256		—
Multifamily		—		1,468		—
All Other Residential		—		478		—
Consumer
Motor Vehicle		—		2,549		—
All Other Consumer		—		416		—
TOTAL	$	1,157	$	11,554	$	2,461

10

The following tables present the amortized cost basis of collateral dependent loans by class of loans:

	September 30, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	3,500	$	—
Farmland		2,094		—
Non Farm, Non Residential		4,239		—
Agriculture		49		1,054
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	10,255	$	1,054

	December 31, 2022
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	4,613	$	1
Farmland		3,289		—
Non Farm, Non Residential		5,123		—
Agriculture		—		155
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		895		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	13,920	$	156

11

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.

	September 30, 2023
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	520	$	370	$	1,316	$	2,206	$	641,139	$	643,345
Farmland		54		—		1,662		1,716		132,177		133,893
Non Farm, Non Residential		46		—		—		46		419,193		419,239
Agriculture		117		217		1,054		1,388		118,279		119,667
All Other Commercial		13		1,083		—		1,096		468,728		469,824
Residential
First Liens		902		739		1,405		3,046		355,299		358,345
Home Equity		594		33		110		737		62,829		63,566
Junior Liens		374		119		267		760		57,019		57,779
Multifamily		113		30		373		516		186,035		186,551
All Other Residential		—		1		—		1		23,099		23,100
Consumer
Motor Vehicle		9,549		1,578		1,002		12,129		605,264		617,393
All Other Consumer		356		134		16		506		32,510		33,016
TOTAL	$	12,638	$	4,304	$	7,205	$	24,147	$	3,101,571	$	3,125,718

	December 31, 2022
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	1,698	$	529	$	726	$	2,953	$	674,569	$	677,522
Farmland		112		—		—		112		127,498		127,610
Non Farm, Non Residential		274		34		—		308		387,108		387,416
Agriculture		—		1,231		—		1,231		136,451		137,682
All Other Commercial		333		—		14		347		478,095		478,442
Residential
First Liens		4,528		1,203		1,054		6,785		341,131		347,916
Home Equity		305		144		276		725		63,615		64,340
Junior Liens		213		69		327		609		56,367		56,976
Multifamily		317		83		—		400		180,305		180,705
All Other Residential		1,115		350		—		1,465		24,058		25,523
Consumer
Motor Vehicle		15,151		1,930		985		18,066		539,651		557,717
All Other Consumer		341		56		15		412		32,967		33,379
TOTAL	$	24,387	$	5,629	$	3,397	$	33,413	$	3,041,815	$	3,075,228

12

Loan Modifications Made to Borrowers Experiencing Financial Difficulty:

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

The following table presents the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, by class and by type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each class of financial receivable is also presented below.

										Combination		Combination
										Term		Term		Total
										Extension and		Extension		Class of
	Principal		Payment		Term		Interest Rate			Principal		Interest Rate		Financing
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivable
Residential
Home Equity	$	—	$	—	$	—	$	139	$	—	$	26		0.00	%
Consumer
Motor Vehicle		6		—		104		—		41		41		0.00
TOTAL	$	6	$	—	$	104	$	139	$	41	$	67			%

The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. All loans and leases that have been modified during the nine months ended September 30, 2023 are in a current status of repayment.

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2023.

			Weighted-			Weighted-
			Average			Average
	Principal		Interest Rate			Term
(Dollar amounts in thousands)	Forgiveness		Reduction			Extension
Residential
First Liens	$	—		2.12	%		24
Consumer
Motor Vehicle		13		1.78			23
TOTAL	$	13		2.05	%		23

There were no modified loans that had a payment default during the nine months ended September 30, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

Upon the Corporation’s determination that a modified loan has subsequently been deemed uncollectible, 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.

13

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.

14

The following tables present the commercial loan portfolio by risk category:

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	67,442	$	134,073	$	114,359	$	42,545	$	44,822	$	103,842	$	84,842	$	591,925
	Special Mention		57		68		10,137		3,213		328		1,001		2,825	$	17,629
	Substandard		17		5,008		2,352		1,068		1,019		8,026		8,012	$	25,502
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,810		1,451		931		548		201		114		—	$	6,055
	Subtotal	$	70,326	$	140,600	$	127,779	$	47,374	$	46,370	$	112,983	$	95,679	$	641,111
	Current period gross charge-offs	$	8	$	20	$	40	$	78	$	-	$	2	$	-	$	148
Farmland	Pass	$	17,799	$	16,393	$	21,274	$	8,364	$	8,928	$	54,026	$	274	$	127,058
	Special Mention		—		—		—		—		—		1,118		—	$	1,118
	Substandard		—		—		—		497		833		1,646		—	$	2,976
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	17,799	$	16,393	$	21,274	$	8,861	$	9,761	$	56,807	$	274	$	131,169
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	52,735	$	120,994	$	69,980	$	25,847	$	21,608	$	113,887	$	4,281	$	409,332
	Special Mention		—		88		1,005		—		854		—		—	$	1,947
	Substandard		587		—		—		—		516		4,993		—	$	6,096
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		683		—		74		—	$	757
	Subtotal	$	53,322	$	121,082	$	70,985	$	26,530	$	22,978	$	118,954	$	4,281	$	418,132
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	8,513	$	11,470	$	7,451	$	6,447	$	7,578	$	17,783	$	52,605	$	111,847
	Special Mention		—		142		—		8		3		609		2,974	$	3,736
	Substandard		—		—		—		—		50		1,279		—	$	1,329
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		54		33		42		28		—		—	$	173
	Subtotal	$	8,529	$	11,666	$	7,484	$	6,497	$	7,659	$	19,671	$	55,579	$	117,085
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	26,467	$	106,465	$	101,778	$	96,167	$	7,168	$	103,476	$	9,479	$	451,000
	Special Mention		—		1,041		—		2,516		—		11,623		—	$	15,180
	Substandard		—		—		18		—		826		5		—	$	849
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		13		—		—		—		465		—	$	478
	Subtotal	$	26,467	$	107,519	$	101,796	$	98,683	$	7,994	$	115,569	$	9,479	$	467,507
	Current period gross charge-offs	$	534	$	-	$	-	$	-	$	20	$	-	$	-	$	554
Residential
Multifamily >5 Residential	Pass	$	27,930	$	63,032	$	32,470	$	22,870	$	6,459	$	24,139	$	111	$	177,011
	Special Mention		—		—		—		361		—		6,599		118	$	7,078
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,107		—		—		256		—	$	1,363
	Subtotal	$	27,930	$	63,032	$	33,577	$	23,231	$	6,459	$	31,367	$	229	$	185,825
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	200,886	$	452,427	$	347,312	$	202,240	$	96,563	$	417,153	$	151,592	$	1,868,173
	Special Mention		57		1,339		11,142		6,098		1,185		20,950		5,917	$	46,688
	Substandard		604		5,008		2,370		1,565		3,244		16,322		8,012	$	37,125
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,826		1,518		2,071		1,273		229		926		—	$	8,843
		$	204,373	$	460,292	$	362,895	$	211,176	$	101,221	$	455,351	$	165,521	$	1,960,829

15

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	163,479	$	128,012	$	56,830	$	54,208	$	26,514	$	99,522	$	92,110	$	620,675
	Special Mention		2,071		9,738		3,434		2,572		2,061		1,848		453	$	22,177
	Substandard		423		723		1,861		954		3,169		6,264		9,103	$	22,497
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,041		1,408		822		469		149		85		—	$	9,974
	Subtotal	$	173,014	$	139,881	$	62,947	$	58,203	$	31,893	$	107,719	$	101,666	$	675,323
Farmland	Pass	$	16,261	$	22,530	$	9,244	$	9,438	$	10,352	$	48,847	$	340	$	117,012
	Special Mention		—		—		1,164		882		—		2,930		—	$	4,976
	Substandard		—		—		456		608		337		1,969		—	$	3,370
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	16,261	$	22,530	$	10,864	$	10,928	$	10,689	$	53,763	$	340	$	125,375
Non Farm, Non Residential	Pass	$	102,629	$	75,011	$	33,214	$	19,596	$	31,438	$	111,586	$	2,975	$	376,449
	Special Mention		99		1,035		—		921		—		279		—	$	2,334
	Substandard		—		—		—		513		—		6,281		—	$	6,794
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		696		—		—		269		—	$	965
	Subtotal	$	102,728	$	76,046	$	33,910	$	21,030	$	31,438	$	118,415	$	2,975	$	386,542
Agriculture	Pass	$	13,085	$	9,028	$	8,015	$	8,422	$	1,987	$	26,729	$	62,397	$	129,663
	Special Mention		89		—		10		3		—		709		2,519	$	3,330
	Substandard		—		—		—		224		1,201		56		762	$	2,243
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		71		39		68		61		25		—		—	$	264
	Subtotal	$	13,245	$	9,067	$	8,093	$	8,710	$	3,213	$	27,494	$	65,678	$	135,500
Other Commercial	Pass	$	143,941	$	91,615	$	90,845	$	19,259	$	29,143	$	82,535	$	5,602	$	462,940
	Special Mention		23		—		—		10		—		11,911		—	$	11,944
	Substandard		—		23		—		—		—		6		—	$	29
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		82		—		—		29		480		—	$	607
	Subtotal	$	143,980	$	91,720	$	90,845	$	19,269	$	29,172	$	94,932	$	5,602	$	475,520
Residential
Multifamily >5 Residential	Pass	$	50,424	$	33,415	$	46,740	$	6,734	$	4,969	$	27,353	$	96	$	169,731
	Special Mention		—		533		372		—		—		6,795		—	$	7,700
	Substandard		—		—		—		—		—		1,280		—	$	1,280
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		1,124		—		—		—		263		—	$	1,387
	Subtotal	$	50,424	$	35,072	$	47,112	$	6,734	$	4,969	$	35,691	$	96	$	180,098
Total	Pass	$	489,819	$	359,611	$	244,888	$	117,657	$	104,403	$	396,572	$	163,520	$	1,876,470
	Special Mention		2,282		11,306		4,980		4,388		2,061		24,472		2,972	$	52,461
	Substandard		423		746		2,317		2,299		4,707		15,856		9,865	$	36,213
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,128		2,653		1,586		530		203		1,114		—	$	13,214
		$	499,652	$	374,316	$	253,771	$	124,874	$	111,374	$	438,014	$	176,357	$	1,978,358

16

The Corporation evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on non-accrual status and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the balance of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming:

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	35,883	$	72,998	$	65,931	$	40,751	$	16,167	$	121,304	$	1,970	$	355,004
	Non-performing		—		24		413		222		30		1,541		—	$	2,230
	Subtotal	$	35,883	$	73,022	$	66,344	$	40,973	$	16,197	$	122,845	$	1,970	$	357,234
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	156	$	-	$	156
Home Equity	Performing	$	141	$	271	$	—	$	7	$	94	$	875	$	61,829	$	63,217
	Non-performing		—		51		—		19		—		71		—	$	141
	Subtotal	$	141	$	322	$	—	$	26	$	94	$	946	$	61,829	$	63,358
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	10,899	$	16,419	$	8,781	$	5,926	$	4,609	$	9,037	$	1,625	$	57,296
	Non-performing		—		—		8		104		65		160		—	$	337
	Subtotal	$	10,899	$	16,419	$	8,789	$	6,030	$	4,674	$	9,197	$	1,625	$	57,633
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	24	$	12	$	-	$	36
Other Residential	Performing	$	6,090	$	10,078	$	3,471	$	431	$	653	$	1,557	$	302	$	22,582
	Non-performing		—		—		—		—		394		43		—	$	437
	Subtotal	$	6,090	$	10,078	$	3,471	$	431	$	1,047	$	1,600	$	302	$	23,019
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	221,153	$	236,144	$	80,919	$	55,243	$	15,316	$	3,412	$	—	$	612,187
	Non-performing		66		1,306		461		562		185		31		—	$	2,611
	Subtotal	$	221,219	$	237,450	$	81,380	$	55,805	$	15,501	$	3,443	$	—	$	614,798
	Current period gross charge-offs	$	284	$	5,802	$	2,590	$	1,159	$	359	$	161	$	-	$	10,355
Other Consumer	Performing	$	10,564	$	8,336	$	4,462	$	2,483	$	850	$	748	$	5,149	$	32,592
	Non-performing		—		28		160		51		20		6		3	$	268
	Subtotal	$	10,564	$	8,364	$	4,622	$	2,534	$	870	$	754	$	5,152	$	32,860
	Current period gross charge-offs	$	6	$	83	$	49	$	30	$	3	$	5	$	95	$	271
Total	Performing	$	284,730	$	344,246	$	163,564	$	104,841	$	37,689	$	136,933	$	70,875	$	1,142,878
	Non-performing		66		1,409		1,042		958		694		1,852		3	$	6,024
Total other loans		$	284,796	$	345,655	$	164,606	$	105,799	$	38,383	$	138,785	$	70,878	$	1,148,902

17

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Residential
First Liens	Performing	$	71,607	$	70,197	$	45,080	$	16,968	$	20,258	$	117,488	$	3,245	$	344,843
	Non-performing		106		—		—		141		100		1,782		—	$	2,129
	Subtotal	$	71,713	$	70,197	$	45,080	$	17,109	$	20,358	$	119,270	$	3,245	$	346,972
Home Equity	Performing	$	1,995	$	943	$	8	$	115	$	55	$	820	$	59,875	$	63,811
	Non-performing		—		—		78		—		14		40		176	$	308
	Subtotal	$	1,995	$	943	$	86	$	115	$	69	$	860	$	60,051	$	64,119
Junior Liens	Performing	$	19,074	$	10,485	$	7,507	$	5,830	$	5,366	$	6,195	$	1,928	$	56,385
	Non-performing		—		4		77		90		139		141		—	$	451
	Subtotal	$	19,074	$	10,489	$	7,584	$	5,920	$	5,505	$	6,336	$	1,928	$	56,836
Other Residential	Performing	$	11,542	$	9,923	$	501	$	915	$	498	$	1,582	$	—	$	24,961
	Non-performing		—		—		—		425		35		18		—	$	478
	Subtotal	$	11,542	$	9,923	$	501	$	1,340	$	533	$	1,600	$	—	$	25,439
Consumer
Motor Vehicle	Performing	$	306,565	$	118,362	$	88,144	$	29,004	$	8,652	$	2,230	$	6	$	552,963
	Non-performing		813		739		437		237		66		47		—	$	2,339
	Subtotal	$	307,378	$	119,101	$	88,581	$	29,241	$	8,718	$	2,277	$	6	$	555,302
Other Consumer	Performing	$	13,426	$	7,914	$	4,109	$	1,302	$	429	$	819	$	4,819	$	32,818
	Non-performing		18		247		89		39		12		12		2	$	419
	Subtotal	$	13,444	$	8,161	$	4,198	$	1,341	$	441	$	831	$	4,821	$	33,237
Total	Performing	$	424,209	$	217,824	$	145,349	$	54,134	$	35,258	$	129,134	$	69,873	$	1,075,781
	Non-performing		937		990		681		932		366		2,040		178	$	6,124
Total other loans		$	425,146	$	218,814	$	146,030	$	55,066	$	35,624	$	131,174	$	70,051	$	1,081,905

18

4.    Securities

The amortized cost and fair value of the Corporation’s investments are shown below. All securities are classified as available-for-sale.

	September 30, 2023
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	104,753	$	4	$	(14,824)	$	89,933
Mortgage Backed Securities - residential		669,417		2		(112,729)		556,690
Mortgage Backed Securities - commercial		7,958		—		(674)		7,284
Collateralized mortgage obligations		214,507		—		(33,551)		180,956
State and municipal obligations		402,144		30		(49,621)		352,553
Municipal taxable		39,875		—		(7,247)		32,628
U.S. Treasury		2,177		—		(26)		2,151
Collateralized debt obligations		—		3,024		—		3,024
TOTAL	$	1,440,831	$	3,060	$	(218,672)	$	1,225,219

	December 31, 2022
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	110,226	$	24	$	(11,777)	$	98,473
Mortgage Backed Securities-residential		711,131		133		(91,016)		620,248
Mortgage Backed Securities-commercial		10,103		—		(426)		9,677
Collateralized mortgage obligations		228,344		60		(24,919)		203,485
State and municipal obligations		396,522		745		(37,114)		360,153
Municipal taxable		39,321		41		(6,847)		32,515
U.S. Treasury		2,979		—		(35)		2,944
Collateralized debt obligations		—		2,986		—		2,986
TOTAL	$	1,498,626	$	3,989	$	(172,134)	$	1,330,481

Contractual maturities of debt securities at September 30, 2023 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	9,687	$	9,572
Due after one but within five years		44,613		42,259
Due after five but within ten years		101,584		96,076
Due after ten years		393,065		332,382
		548,949		480,289
Mortgage-backed securities and collateralized mortgage obligations		891,882		744,930
TOTAL	$	1,440,831	$	1,225,219

There were zero in gross gains and zero in losses from investment sales/calls realized by the Corporation for the three and nine months ended September 30, 2023. For the three and nine months ended September 30, 2022 there were zero and $5 thousand in gross gains and zero in losses on sales/calls of investment securities.

19

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2023 and December 31, 2022.

	September 30, 2023
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	3,684	$	(160)	$	85,832	$	(14,664)	$	89,516	$	(14,824)
Mortgage Backed Securities - Residential		13,339		(452)		543,186		(112,277)		556,525		(112,729)
Mortgage Backed Securities - Commercial		—		—		7,284		(674)		7,284		(674)
Collateralized mortgage obligations		15,852		(613)		165,104		(32,938)		180,956		(33,551)
State and municipal obligations		145,686		(4,162)		197,579		(45,459)		343,265		(49,621)
Municipal taxable		1,771		(44)		30,357		(7,203)		32,128		(7,247)
U.S. Treasury		—		—		2,151		(26)		2,151		(26)
Total temporarily impaired securities	$	180,332	$	(5,431)	$	1,031,493	$	(213,241)	$	1,211,825	$	(218,672)

	December 31, 2022
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	58,462	$	(4,034)	$	38,959	$	(7,743)	$	97,421	$	(11,777)
Mortgage Backed Securities - Residential		234,488		(19,757)		379,520		(71,259)		614,008		(91,016)
Mortgage Backed Securities - Commercial		9,677		(426)		—		—		9,677		(426)
Collateralized mortgage obligations		135,135		(11,331)		63,792		(13,588)		198,927		(24,919)
State and municipal obligations		233,439		(24,291)		41,510		(12,823)		274,949		(37,114)
Municipal taxable		18,637		(3,706)		12,837		(3,141)		31,474		(6,847)
U.S. Treasury		2,944		(35)		—		—		2,944		(35)
Total temporarily impaired securities	$	692,782	$	(63,580)	$	536,618	$	(108,554)	$	1,229,400	$	(172,134)

Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for impairment related to credit losses by segregating the portfolio into two general segments.

In evaluating for impairment, management considers the reason for the decline, the extent of the decline, the duration of the decline and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security’s amortized cost is written down to fair value through income. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, 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. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.

Gross unrealized losses on investment securities were $218.7 million as of September 30, 2023 and $172.1 million as of December 31, 2022. Management believes these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. The portfolio contains primarily government agency, agency backed mortgage backed securities (“MBS”), and collateralized mortgage obligations (“CMO”), which are issued by government sponsored enterprises and are backed by the full faith and credit of the United States government. Secondarily, the Corporation invests in municipal securities issued by state and local governments. Of these, almost half are either insured or contain state enhancements. On the remaining, credit is monitored by the investment committee. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

20

The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollar amounts in thousands)	2023		2022		2023		2022
Beginning balance	$	2,974	$	2,974	$	2,974	$	2,974
Reductions for securities called during the period		—		—		—		—
Ending balance	$	2,974	$	2,974	$	2,974	$	2,974

21

5.    Fair Value

FASB ASC No. 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair value of most securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined. These securities are primarily trust preferred securities and investments in state and municipal securities. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurements.

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

22

	September 30, 2023
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	89,933	$	—	$	89,933
Mortgage Backed Securities-residential		—		556,690		—		556,690
Mortgage Backed Securities-commercial		—		7,284		—		7,284
Collateralized mortgage obligations		—		180,956		—		180,956
State and municipal		—		351,373		1,180		352,553
Municipal taxable		—		32,628		—		32,628
U.S. Treasury		—		2,151		—		2,151
Collateralized debt obligations		—		—		3,024		3,024
TOTAL	$	—	$	1,221,015	$	4,204	$	1,225,219
Derivative Assets				3,608
Derivative Liabilities				(3,608)

	December 31, 2022
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	98,473	$	—	$	98,473
Mortgage Backed Securities-residential		—		620,248		—		620,248
Mortgage Backed Securities-commercial		—		9,677		—		9,677
Collateralized mortgage obligations		—		203,485		—		203,485
State and municipal		—		358,608		1,545		360,153
Municipal taxable		—		32,515		—		32,515
U.S. Treasury		—		2,944		—		2,944
Collateralized debt obligations		—		—		2,986		2,986
TOTAL	$	—	$	1,325,950	$	4,531	$	1,330,481
Derivative Assets				2,838
Derivative Liabilities				(2,838)

There were no transfers between Level 1 and Level 2 during 2023 and 2022.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2023 and the year ended December 31, 2022.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, July 1	$	1,180	$	2,941	$	4,121
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		83		83
Transfers		—		—		—
Settlements		—		—		—
Ending balance, September 30	$	1,180	$	3,024	$	4,204

23

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,545	$	2,986	$	4,531
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		38		38
Transfers		—		—		—
Settlements		(365)		—		(365)
Ending balance, September 30	$	1,180	$	3,024	$	4,204

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2022
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,895	$	3,359	$	5,254
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		(373)		(373)
Purchases		—		—		—
Settlements		(350)		—		(350)
Ending balance, December 31	$	1,545	$	2,986	$	4,531

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2023.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,180	Discounted cash flow	Discount rate	4.04%-4.44	%
Collateralized debt obligations	$	3,024	Discounted cash flow	Discount rate	7.22	%
Collateral dependent loans	$	1,812	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2022.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,545	Discounted cash flow	Discount rate	3.73%-4.44	%
Collateralized debt obligations	$	2,986	Discounted cash flow	Discount rate	5.34	%
Collateral dependent loans		4,477	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional

24

discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and individually evaluated loans carried at fair value are primarily comprised of smaller balance properties.

The carrying amounts and estimated fair value of financial instruments at September 30, 2023 and December 31, 2022, are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully. Security fair values were described previously. For fixed-rate, collectively evaluated loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and considering credit risk. The valuation of individually evaluated loans was described previously. Loan fair value estimates represent an exit price. Fair values of loans held for sale are based on market bids on the loans or similar loans. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material.

	September 30, 2023
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	74,668	$	25,257	$	49,411	$	—	$	74,668
Federal funds sold		688		—		688		—		688
Securities available-for-sale		1,225,219		—		1,221,015		4,204		1,225,219
Restricted stock		15,398		n/a		n/a		n/a		n/a
Loans, net		3,078,592		—		—		2,901,310		2,901,310
Accrued interest receivable		22,546		—		6,837		15,709		22,546
Deposits		(4,040,995)		—		(4,035,772)		—		(4,035,772)
Short-term borrowings		(132,734)		—		(132,734)		—		(132,734)
Other borrowings		(84,578)		—		(84,614)		—		(84,614)
Accrued interest payable		(1,929)		—		(1,929)		—		(1,929)

	December 31, 2022
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	222,517	$	29,400	$	193,117	$	—	$	222,517
Federal funds sold		9,374		—		9,374		—		9,374
Securities available-for-sale		1,330,481		—		1,325,950		4,531		1,330,481
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,027,659		—		—		2,930,680		2,930,680
Accrued interest receivable		21,288		—		5,529		15,759		21,288
Deposits		(4,368,871)		—		(4,369,402)		—		(4,369,402)
Short-term borrowings		(70,875)		—		(70,875)		—		(70,875)
Other borrowings		(9,589)		—		(8,788)		—		(8,788)
Accrued interest payable		(483)		—		(483)		—		(483)

25

6.    Borrowings

Short-term borrowings:

Period–end short-term borrowings were comprised of the following:

(Dollar amounts in thousands)	September 30, 2023		December 31, 2022
Federal Funds Purchased	$	63,425	$	3,000
Repurchase Agreements		69,309		67,875
	$	132,734	$	70,875

The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

Collateral pledged to repurchase agreements by remaining maturity are as follows:

	September 30, 2023
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	63,008	$	300	$	1,450	$	4,551	$	69,309

	December 31, 2022
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	63,335	$	—	$	4,175	$	365	$	67,875

Other borrowings:

Other borrowings at September 30, 2023 and December 31, 2022 are summarized as follows:

(Dollar amounts in thousands)	September 30, 2023		December 31, 2022
FHLB advances	$	84,578	$	9,589
TOTAL	$	84,578	$	9,589

The aggregate minimum annual retirements of other borrowings are as follows:

Twelve Months Ended September 30,

2024	$	78,618
2025		1,007
2026		4,953
2027		—
2028		—
Thereafter		—
	$	84,578

26

At September 30, 2023 and December 31, 2022, other borrowings are summarized as follows: The Corporation’s subsidiary bank is a member of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances. There are $84.6 million of advances from the FHLB at September 30, 2023, and $9.6 million of advances at December 31, 2022. FHLB advances are, generally due in full at maturity. They are secured by eligible securities and a blanket pledge on real estate loan collateral.

7.    Components of Net Periodic Benefit Cost

	Three Months Ended September 30,								Nine Months Ended September 30,
					Post-Retirement								Post-Retirement
	Pension Benefits				Health Benefits				Pension Benefits				Health Benefits
(Dollar amounts in thousands)	2023		2022		2023		2022		2023		2022		2023		2022
Service cost	$	157	$	297	$	5	$	8	$	471	$	892	$	15	$	25
Interest cost		956		707		38		28		2,868		2,120		115		83
Expected return on plan assets		(970)		(1,227)		—		—		(2,909)		(3,682)		—		—
Net amortization of prior service cost		—		—		—		—		—		—		—		—
Net amortization of net (gain) loss		188		315		(13)		—		564		944		(40)		—
Net Periodic Benefit Cost	$	331	$	92	$	30	$	36	$	994	$	274	$	90	$	108

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2022 that it expected to contribute zero and $642 thousand respectively to its Pension Plan and ESOP and $245 thousand to the Post Retirement Health Benefits Plan in 2023. No contributions have been made to the Pension Plan thus far in 2023. Contributions of $163 thousand have been made through the first nine months of 2023 for the Post Retirement Health Benefits plan. No contributions have been made in 2023 for the ESOP. The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit. In the first nine months of 2023 and 2022 there has been $1.9 million and $1.7 million of expense accrued for potential contributions to these alternative retirement benefit options.

8.    Revenue from Contracts with Customers

All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Corporation’s sources of Non-Interest Income for the three and nine months ended September 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollar amounts in thousands)	2023		2022		2023		2022
Non-interest income
Service charges on deposits and debit card fee income	$	7,099	$	6,965	$	20,971	$	20,698
Asset management fees		1,140		1,015		3,642		3,687
Interchange income		—		149		47		418
Net gains on sales of loans (a)		321		440		811		1,705
Loan servicing fees (a)		447		457		997		1,184
Net gains/(losses) on sales of securities (a)		—		—		—		5
Other service charges and fees (a)		213		160		613		488
Other (b)		2,407		2,954		4,374		7,963	(c)
Total non-interest income	$	11,627	$	12,140	$	31,455	$	36,148

(a)Not within the scope of ASC 606.

(b)The Other category includes gains/(losses) on the sale of OREO for the three months ended September 30, 2023 and September 30, 2022, totaling zero, and for the nine months ended for the same periods, totaling $(31) thousand and $85 thousand, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.

(c)Legal settlement totaling $4 million received in first quarter 2022.

27

Service charges on deposits: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. 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 Corporation 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 Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Asset management fees: The Corporation earns asset management fees from its contracts with trust customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date. Other related services provided and the fees the Corporation earns, which are based on a fixed fee schedule, are recognized when the services are rendered.

Interchange income: The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Gains/Losses on sales of OREO: The Corporation 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 an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

28

9.   Accumulated Other Comprehensive Income

The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive income/(loss) for the three and nine months ended September 30, 2023 and 2022.

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, July 1,	$	(130,466)	$	(10,784)	$	(141,250)
Change in other comprehensive income (loss) before reclassification		(34,934)		—		(34,934)
Amounts reclassified from accumulated other comprehensive income		—		146		146
Net current period other comprehensive income (loss)		(34,934)		146		(34,788)
Ending balance, September 30,	$	(165,400)	$	(10,638)	$	(176,038)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(128,896)	$	(11,078)	$	(139,974)
Change in other comprehensive income (loss) before reclassification		(36,504)		—		(36,504)
Amounts reclassified from accumulated other comprehensive income		—		440		440
Net current period other comprehensive income (loss)		(36,504)		440		(36,064)
Ending balance, September 30,	$	(165,400)	$	(10,638)	$	(176,038)

	Unrealized
	gains and
	(Losses) on available-		2022
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, July 1,	$	(109,159)	$	(17,471)	$	(126,630)
Change in other comprehensive income (loss) before reclassification		(41,060)		—		(41,060)
Amounts reclassified from accumulated other comprehensive income		—		315		315
Net current period other comprehensive income (loss)		(41,060)		315		(40,745)
Ending balance, September 30,	$	(150,219)	$	(17,156)	$	(167,375)

	Unrealized
	gains and
	(Losses) on available-		2022
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	15,674	$	(18,100)	$	(2,426)
Change in other comprehensive income (loss) before reclassification		(165,889)		—		(165,889)
Amounts reclassified from accumulated other comprehensive income		(4)		944		940
Net current period other comprehensive income (loss)		(165,893)		944		(164,949)
Ending balance, September 30,	$	(150,219)	$	(17,156)	$	(167,375)

29

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	7/1/2023		Change		9/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(132,671)	$	(34,997)	$	(167,668)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,205		63		2,268
Total unrealized loss on securities available-for-sale	$	(130,466)	$	(34,934)	$	(165,400)
Unrealized gain (loss) on retirement plans		(10,784)		146		(10,638)
TOTAL	$	(141,250)	$	(34,788)	$	(176,038)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2023		Change		9/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,135)	$	(36,533)	$	(167,668)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,239		29		2,268
Total unrealized gain (loss) on securities available-for-sale	$	(128,896)	$	(36,504)	$	(165,400)
Unrealized gain (loss) on retirement plans		(11,078)		440		(10,638)
TOTAL	$	(139,974)	$	(36,064)	$	(176,038)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	7/1/2022		Change		9/30/2022
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(111,474)	$	(41,078)	$	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,315		18		2,333
Total unrealized gain (loss) on securities available-for-sale	$	(109,159)	$	(41,060)	$	(150,219)
Unrealized loss on retirement plans		(17,471)		315		(17,156)
TOTAL	$	(126,630)	$	(40,745)	$	(167,375)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2022		Change		9/30/2022
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	13,155	$	(165,707)	$	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,519		(186)		2,333
Total unrealized income (loss) on securities available-for-sale	$	15,674	$	(165,893)	$	(150,219)
Unrealized gain (loss) on retirement plans		(18,100)		944		(17,156)
TOTAL	$	(2,426)	$	(164,949)	$	(167,375)

30

	Three Months Ended September 30, 2023
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(195)	(a)	Salary and benefits
retirement plan items		49		Income tax expense
	$	(146)		Net of tax
Total reclassifications for the period	$	(146)		Net of tax

(a)Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Nine Months Ended September 30, 2023
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(587)	(a)	Salary and benefits
retirement plan items		147		Income tax expense
	$	(440)		Net of tax
Total reclassifications for the period	$	(440)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Three Months Ended September 30, 2022
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(420)	(a)	Salary and benefits
retirement plan items		105		Income tax expense
	$	(315)		Net of tax
Total reclassifications for the period	$	(315)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

31

	Nine Months Ended September 30, 2022
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	5		Net securities gains (losses)
on available-for-sale		(1)		Income tax expense
securities	$	4		Net of tax
Amortization of	$	(1,260)	(a)	Salary and benefits
retirement plan items		316		Income tax expense
	$	(944)		Net of tax
Total reclassifications for the period	$	(940)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

32

10.   Leases

The Corporation leases certain branches under operating leases. At September 30, 2023, the Corporation had lease liabilities totaling $5,657,000 and right-of-use assets totaling $5,599,000 related to these leases. At December 31, 2022, the Corporation had lease liabilities totaling $5,885,000 and right-of-use assets totaling $5,840,000 related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At September 30, 2023, the weighted average remaining lease term for operating leases was 9.2 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.16%.

The calculated amount of the lease liabilities and right-of-use assets are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Corporation’s lease agreements often include one or more options to renew at the Corporation’s discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the lease liability and right-of-use asset. Regarding the discount rate, the new standard requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

The following table represents lease costs and other lease information. As the Corporation elected, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

Lease costs were as follows:

	Nine Months Ended
(Dollar amounts in thousands)	September 30, 2023
Operating lease cost	$	766
Short-term lease cost		100
Variable lease cost		11
Total lease cost	$	877
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities		730
Right-of-use assets obtained in exchange for new operating lease liabilities		378

Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2023 were as follows:

(Dollar amounts in thousands)	September 30, 2023
Twelve Months Ended September 30,
2024	$	904
2025		882
2026		812
2027		771
2028		708
Thereafter		2,354
Total Future Minimum Lease Payments		6,431
Amounts Representing Interest		(774)
Present Value of Net Future Minimum Lease Payments	$	5,657

33

ITEMS 2. and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk

The purpose of this discussion is to point out key factors in the Corporation’s recent performance compared with earlier periods. The discussion should be read in conjunction with the financial statements beginning on page three of this report. All figures are for the consolidated entities. It is presumed the readers of these financial statements and of the following narrative have previously read the Corporation’s financial statements for 2022 in the 10-K filed for the fiscal year ended December 31, 2022.

This Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation’s business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Corporation’s Form 10-K for the year ended December 31, 2022, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC’s Web site at www.sec.gov or on the Corporation’s Web site at www.first-online.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.

Critical Accounting Policies

Certain of the Corporation’s accounting policies are important to the portrayal of the Corporation’s financial condition and results of operations, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances which could affect these judgments include, without limitation, changes in interest rates, in the performance of the economy or in the financial condition of borrowers. Management believes that its critical accounting policies include determining the allowance for credit losses and the valuation of goodwill and valuing investment securities. See further discussion of these critical accounting policies in the 2022 Form 10-K.

Allowance for credit losses. The allowance for credit losses (ACL) represents management’s estimate of expected losses inherent within the existing loan portfolio. The allowance for credit losses is increased by the provision for credit losses charged to expense and reduced by loans charged off, net of recoveries. The allowance for credit losses is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions, nonperforming loans, determination of acquired loans as purchase credit deteriorated, and reasonable and supportable forecasts. Loans are individually evaluated when they do not share risk characteristics with other loans in the respective pool. Loans evaluated individually are excluded from the collective evaluation. Management elected the collateral dependent practical expedient upon adoption of ASC 326. Expected credit losses on individually evaluated loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Management utilizes a cohort methodology to determine the allowance for credit losses. This method identifies and captures the balance of a pool of loans with similar risk characteristics, as of a particular point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over their remaining life. The cohorts track loan balances and historical loss experience since 2008, and management extends the look back period each quarter to capture all available data points in the historical loss rate calculation. The quantitative component of the ACL involves assumptions that require a significant level of estimation; these include historical losses as a predictor of future performance, appropriateness of selected delay periods, and the reasonableness of the portfolio segmentation.

A historical data set is expected to provide the best indication of future credit performance. Delay periods represent the amount of time it takes a cohort of loans to become seasoned, or incur sufficient attrition through pay downs, renewals, or charge-offs. Portfolio segmentation relates to the pooling of loans with similar risk characteristics, such as industry types, collateral, and consumer purpose.

34

On an annual basis, in the first quarter, management performs a recalibration of the delay periods and portfolio segmentation to determine whether they are reasonable and appropriate based on the information available at that time.

Management considers qualitative adjustments to expected credit loss estimates for information not already captured in the loss estimation process. Where past performance may not be representative of future losses, loss rates are adjusted for qualitative and economic forecast factors. Management uses the peak three consecutive quarter net charge off rate to capture maximum potential volatility over the reasonable and supportable forecast period. Historical losses utilized in setting the qualitative factor ranges are anchored to 2008 and may be supplemented by peer information when needed. The qualitative factor ranges are recalibrated annually to capture recent behavior that is indicative of the credit profile of the current portfolio.

Qualitative factors include items, such as changes in lending policies or procedures, asset specific risks, and economic uncertainty in forward-looking forecasts. Economic indicators utilized in forecasting include unemployment rate, gross domestic product, housing starts, and interest rates. Management uses a two-year reasonable and supportable period across all loan segments to forecast economic conditions. Management believes the two-year time horizon aligns with available industry guidance and various forecasting sources. Economic forecast adjustments are overlaid onto historical loss rates. As such, reversion from forecast rates to historical loss rates is immediate.

The ACL and allowance for unfunded commitments were $39.0 million and $2.0 million, respectively at September 30, 2023, compared to $39.8 million and $2.1 million, respectively at December 31, 2022. The qualitative amount of the reserve decreased $109 thousand to $11.0 million. The quantitative amount is $27.6 million at September 30, 2023, compared to $28.6 million at December 31, 2022. There was a decrease of $100 thousand in the allowance for unfunded commitments. See additional discussion of ACL in the Allowance for Credit Losses section below.

Based on management’s analysis of the current portfolio, management believes the allowance is adequate. Changes in the financial condition of individual borrowers, economic conditions, historical loss experience, or the condition of the various markets in which collateral may be sold may affect the required level of the allowance for credit losses and the associated provision for credit losses. As management monitors these changes, as well as those factors discussed above, adjustments may be recorded to the allowance for credit losses and the associated provision for credit losses in the future.

Summary of Operating Results

Net income for the three months ended September 30, 2023 was $16.3 million, compared to $18.1 million for the same period in 2022. Basic earnings per share decreased to $1.37 for the third quarter of 2023 compared to $1.50 for the same period in 2022. Return on average assets and return on average equity were 1.35% and 13.19% respectively, for the three months ended September 30, 2023 compared to 1.43% and 15.00% for the three months ended September 30, 2022. Net income for the nine months ended September 30, 2023 was $48.3 million, compared to $54.6 million for the same period in 2022. Basic earnings per share decreased to $4.02 for the first nine months of 2023 compared to $4.45 for the same period in 2022. Return on average assets and return on average equity were 1.33% and 12.98% respectively, for the nine months ended September 30, 2023, compared to 1.43% and 14.14% for the nine months ended September 30, 2022.

In light of recent events in the banking sector, including recent bank failures, continuing interest rate hikes and recessionary concerns, the Corporation has proactively positioned the balance sheet to mitigate the risks affecting the Corporation and the overall banking industry in order to serve its clients and communities.

● Liquidity remains strong, with cash and available for sale securities representing approximately 27.2% of assets at September 30, 2023. The Corporation maintains the ability to access considerable sources of contingent liquidity at the Federal Home Loan Bank and several correspondent banks. Management considers the Corporation’s current liquidity position to be adequate to meet both short-term and long-term liquidity needs. Refer to the section Liquidity Risk for additional information.

● Capital remains strong, with ratios of the Corporation, and its subsidiary bank, well above the standards to be considered well-capitalized under regulatory requirements. Refer to the section Capital Adequacy, included elsewhere in this report for additional details.

35

● Asset quality remains solid, with a non-performing asset ratio of 0.33% of total assets as of September 30, 2023 and net charge-offs of 0.24% to average loans and leases, reflecting the Company's disciplined underwriting and conservative lending philosophy which has supported the Corporation’s strong credit performance during prior financial crises. Refer to the section Non-Performing Loan for additional information.

The Corporation will continue its safe and sound banking practices, but the continuing impact of the crisis and further extent on the Corporation’s operations and financial results for the remainder of 2023 is uncertain and cannot be predicted.

On October 31, 2022, First Financial Corporation issued a press release announcing plans to optimize its banking center network as part of a plan to improve operating efficiencies and accommodate changing customer preferences. Subject to regulatory requirements, the Corporation closed and consolidated seven of its seventy-two branches on January 31, 2023. The buildings and land in the owned branches, that were closed, recorded impairment on December 31, 2022 for $1.3 million. These consolidations are projected to save the Corporation approximately $1.5 million per year in operating expenses.

The primary components of income and expense affecting net income are discussed in the following analysis.

Net Interest Income

The Corporation’s primary source of earnings is net interest income, which is the difference between the interest earned on loans and other investments and the interest paid for deposits and other sources of funds. Net interest income decreased $2.0 million in the three months ended September 30, 2023 to $41.2 million from $43.1 million in the same period in 2022. The net interest margin for the three months ended September 30, 2023 is 3.74% compared to 3.71% for the same period in 2022, a 0.69% increase. Net interest income increased $6.3 million in the nine months ended September 30, 2023 to $127.7 million from $121.4 million in the same period in 2022. The net interest margin for the nine months ended September 30, 2023 is 3.83% compared to 3.44% for the same period in 2022.

The increase in yields on net loans and leases of 111 basis points is the primary contributor to the improved yield on average earning assets for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, which was due to market conditions as a result of Federal Reserve interest rate increases. Comparing the nine months ended September 30, 2023 to the nine months ended September 30, 2022, the effective rate paid on average interest-bearing deposits increased 109 basis points, due to rate competition in the market. For the same period discussed above, interest paid on other borrowings increased 253 basis points due to higher borrowing rates.

Non-Interest Income

Non-interest income for the three months ended September 30, 2023 was $11.6 million compared to $12.1 million for the same period of 2022. Non-interest income for the nine months ended September 30, 2023 was $31.5 million compared to $36.1 million for the same period in 2022. The change in non-interest income from 2022 to 2023 was primarily driven by a $4.0 million legal settlement received in February, 2022. The Corporation does not expect this income to reoccur.

Non-Interest Expenses

The Corporation’s non-interest expense for the quarter ended September 30, 2023 was $32.3 million compared to $31.5 million for the same period in 2022. The Corporation’s non-interest expense for the nine months ended September 30, 2023 increased $2.4 million to $95.9 million compared to the same period in 2022.

36

Allowance for Credit Losses

The Corporation’s provision for credit losses increased to $1.2 million for the third quarter of 2023 as compared to provision of $1.1 million for the same period in 2022. Net charge-offs for the third quarter of 2023 were $2.1 million compared to net charge-offs of $3.0 million for the same period of 2022. The provision for credit losses increased $9.6 million to $4.8 million for the nine months ended September 30, 2023, compared to negative provision of $4.8 million for the same period in 2022. Net charge-offs for the first nine months of 2023 increased $1.5 million to $5.5 million compared to the same period in 2022. The negative provision for first quarter 2022 was the result of several factors. The first was the annual model recalibration. Each year, in the first quarter, management reviews each model variable to determine if adjustments are necessary to improve the model’s predictability. In the first quarter 2022 the delay periods were shortened to pick up more recent losses. Also, the qualitative factor maximum scorecard ranges for certain cohorts were reduced, which reduced the reserve. Secondly, management removed two qualitative factors that were deemed no longer applicable. The first was related to an acquisition, which management believed to have seasoned adequately that it was no longer warranted. The second was related to the CECL model and the related uncertainty. The uncertainty surrounded the newness of the model and potential regulatory scrutiny. Following two exam cycles, management elected to remove the factor. Also, during the quarter, historical loss rates continued to decline, which lowers the required reserve. The historical loss rate declined in most segments. Based on management’s analysis of the current portfolio, an evaluation that includes consideration of changes in CECL model assumptions of credit quality, economic conditions, and loan composition, management believes the allowance is adequate. In the third quarter 2023, no significant changes were made.

Income Tax Expense

The Corporation’s effective income tax rate for the first nine months of 2023 was 17.37% compared to 20.61% for the same period in 2022. Pretax income for the first nine months in 2022 was significantly higher than pretax income for first nine months in 2023. Since our permanent differences remained similar, income was the driving factor for the decrease in effective tax rate.

Non-performing Loans

Non-performing loans consist of (1) non-accrual loans on which the ultimate collectability of the full amount of interest is uncertain,  and (2) loans past due ninety days or more as to principal or interest. Non-performing loans decreased to $12.6 million at September 30, 2023 compared to $12.7 million at December 31, 2022. Nonperforming loans increased 21.8% compared to $10.3 million as of September 30, 2022. A summary of non-performing loans at September 30, 2023 and December 31, 2022 follows:

	(000's)
	September 30, 2023			December 31, 2022
Non-accrual loans	$	11,214		$	11,554
Accruing loans past due over 90 days		1,370			1,119
	$	12,584		$	12,673
Ratio of the allowance for credit losses as a percentage of non-performing loans		310.2	%		414.4	%

The following loan categories comprise significant components of the nonperforming non-restructured loans:

	September 30, 2023		December 31, 2022
Non-accrual loans
Commercial loans	$	5,672	$	4,874
Residential loans		2,187		3,715
Consumer loans		3,355		2,965
	$	11,214	$	11,554
Past due 90 days or more
Commercial loans	$	19	$	112
Residential loans		1,350		1,007
Consumer loans		1		—
	$	1,370	$	1,119

37

Interest Rate Sensitivity and Liquidity

First Financial Corporation has established risk measures, limits and policy guidelines for managing interest rate risk and liquidity. Responsibility for management of these functions resides with the Asset Liability Committee. The primary goal of the Asset Liability Committee is to maximize net interest income within the interest rate risk limits approved by the Board of Directors.

Interest Rate Risk

Management considers interest rate risk to be the Corporation’s most significant market risk. Interest rate risk is the exposure to changes in net interest income as a result of changes in interest rates. Consistency in the Corporation’s net interest income is largely dependent on the effective management of this risk.

The Asset Liability position is measured using sophisticated risk management tools, including earning simulation and market value of equity sensitivity analysis. These tools allow management to quantify and monitor both short-term and long-term exposure to interest rate risk. Simulation modeling measures the effects of changes in interest rates, changes in the shape of the yield curve and the effects of embedded options on net interest income. This measure projects earnings in the various environments over the next three years. It is important to note that measures of interest rate risk have limitations and are dependent on various assumptions. These assumptions are inherently uncertain and, as a result, the model cannot precisely predict the impact of interest rate fluctuations on net interest income. Actual results will differ from simulated results due to timing, frequency and amount of interest rate changes as well as overall market conditions. The Committee has performed a thorough analysis of these assumptions and believes them to be valid and theoretically sound. These assumptions are continuously monitored for behavioral changes.

The Corporation from time to time utilizes derivatives to manage interest rate risk. Management continuously evaluates the merits of such interest rate risk products but does not anticipate the use of such products to become a major part of the Corporation’s risk management strategy.

The table below shows the Corporation’s estimated sensitivity profile as of September 30, 2023. The change in interest rates assumes a parallel shift in interest rates of 100, 200, and 300 basis points. Given a 100 basis point increase in rates, net interest income would decrease 1.31% over the next 12 months and increase 1.49% over the following 12 months. Given a 100 basis point decrease in rates, net interest income would increase 0.01% over the next 12 months and decrease 2.85% over the following 12 months. These estimates assume all rate changes occur overnight and management takes no action as a result of this change.

Basis Point	Percentage Change in Net Interest Income
Interest Rate Change	12 months		24 months		36 months
Down 300	0.17	%	(9.34)	%	(18.72)	%
Down 200	0.07		(5.91)		(12.10)
Down 100	0.01		(2.85)		(5.89)
Up 100	(1.31)		1.49		4.65
Up 200	(4.94)		0.55		6.79
Up 300	(6.96)		1.30		10.74

Typical rate shock analysis does not reflect management’s ability to react and thereby reduce the effect of rate changes, and represents a worst-case scenario.

Liquidity Risk

Liquidity represents an institution’s ability to provide funds to satisfy demands from depositors, borrowers, and other creditors by either converting assets into cash or accessing new or existing sources of incremental funds. Generally the Corporation relies on deposits, loan repayments and repayments of investment securities as its primary sources of funds. The Corporation has $9.6 million of investments that mature throughout the next 12 months. The Corporation also anticipates $103.7 million of principal payments from mortgage-backed and other securities. Given the current rate environment, the Corporation anticipates $7.6 million in securities to be called within the next 12 months. The Corporation also has $217.8 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, $179.6 million available with the Federal Reserve Bank, and $125 million of available fed funds lines with correspondent banks. With these sources of funds, the Corporation currently anticipates adequate liquidity to meet the expected obligations of its customers.

38

Financial Condition

Comparing the first nine months of 2023 to year-ended December 31, 2022, loans net of deferred loan costs, have increased $50 million to $3.1 billion. Deposits decreased 7.50% to $4.0 billion at September 30, 2023 compared to December 31, 2022. The decline was in part driven by a decline in interest bearing public funds checking, which historically declines in the first quarter each year, and a decline in institutional deposits as a result of a pricing decision. Other borrowings increased $75 million to $84.6 million at September 30, 2023 compared to December 31, 2022. Shareholders’ equity decreased 1.08% or $5.1 million. This financial performance increased book value per share 1.42% to $40.00 at September 30, 2023 from $39.44 at December 31, 2022. Book value per share is calculated by dividing the total shareholders’ equity by the number of shares outstanding. Accumulated other comprehensive loss decreased $36.1 million primarily due to the market value of the securities portfolio, which reflected the decrease in securities pricing.

Capital Adequacy

The Federal Reserve, OCC and Federal Deposit Insurance Corporation (collectively, joint agencies) establish regulatory capital guidelines for U.S. banking organizations. Regulatory capital guidelines require that capital be measured in relation to the credit and market risks of both on- and off-balance sheet items using various risk weights. On January 1, 2015, the Basel 3 rules became effective and include transition provisions through January 1, 2019. Under Basel 3, Total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of Common equity tier 1 capital and additional tier 1 capital.

Common equity tier 1 capital primarily includes qualifying common shareholders’ equity, retained earnings and certain minority interests. Goodwill, disallowed intangible assets and certain disallowed deferred tax assets are excluded from Common equity tier 1 capital.

Additional tier 1 capital primarily includes qualifying non-cumulative preferred stock, trust preferred securities (Trust Securities) subject to phase-out and certain minority interests. Certain deferred tax assets are also excluded.

Tier 2 capital primarily consists of qualifying subordinated debt, a limited portion of the allowance for loan and lease losses, Trust Securities subject to phase-out and reserves for unfunded lending commitments. The Corporation’s Total capital is the sum of Tier 1 capital plus Tier 2 capital.

To meet adequately capitalized regulatory requirements, an institution must maintain a Tier 1 capital ratio of 8.50 percent and a Total capital ratio of 10.50 percent. A “well-capitalized” institution must generally maintain capital ratios 200 bps higher than the minimum guidelines. The risk-based capital rules have been further supplemented by a Tier 1 leverage ratio, defined as Tier 1 capital divided by quarterly average total assets, after certain adjustments. BHCs must have a minimum Tier 1 leverage ratio of at least 4.0 percent. National banks must maintain a Tier 1 leverage ratio of at least 5.0 percent to be classified as “well capitalized.” Failure to meet the capital requirements established by the joint agencies can lead to certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Corporation’s financial position. Below are the capital ratios for the Corporation and lead bank.

The fully phased in capital conservation buffer set the minimum ratios for common equity Tier 1 capital at 7%, the Tier 1 capital at 8.5% and the total capital at 10.5%. Currently the Corporation exceeds all of these minimums.

	September 30, 2023		December 31, 2022		To Be Well Capitalized
Common equity tier 1 capital
Corporation	14.61	%	13.58	%	N/A
First Financial Bank	13.63	%	12.09	%	—	%
Total risk-based capital
Corporation	15.64	%	14.61	%	N/A
First Financial Bank	14.67	%	13.14	%	—	%
Tier I risk-based capital
Corporation	14.61	%	13.58	%	N/A
First Financial Bank	13.63	%	12.09	%	—	%
Tier I leverage capital
Corporation	11.72	%	10.78	%	N/A
First Financial Bank	10.38	%	9.50	%	—	%

39

ITEM 4.Controls and Procedures

First Financial Corporation’s management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. As of September 30, 2023, an evaluation was performed under the supervision and with the participation of management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures. Based on that evaluation, management, including the principal executive officer and principal financial officer, concluded that the Corporation’s disclosure controls and procedures as of September 30, 2023 were effective in ensuring material information required to be disclosed in this Quarterly Report on Form 10-Q was recorded, processed, summarized, and reported on a timely basis. Additionally, there was no change in the Corporation's internal control over financial reporting that occurred during the quarter ended September 30, 2023 that has materially affected, or is reasonably likely to materially affect, the Corporation's internal control over financial reporting.

40

PART II – Other Information

ITEM 1.Legal Proceedings.

There are no material pending legal proceedings, other than routine litigation incidental to the business of the Corporation or its subsidiaries, to which the Corporation or any of the subsidiaries is a party to or of which any of their respective property is subject. Further, there is no material legal proceeding in which any director, officer, principal shareholder, or affiliate of the Corporation or any of its subsidiaries, or any associate of such director, officer, principal shareholder or affiliate is a party, or has a material interest, adverse to the Corporation or any of its subsidiaries.

ITEM 1A. Risk Factors.

Except as set forth below, where an already discussed risk factor has been updated for the current period, there have been no material changes in the risk factors from those disclosed in the Corporation’s 2022 Form 10-K filed for December 31, 2022.

A lack of liquidity could affect our operations and jeopardize our financial condition.

The Corporation requires liquidity to meet our deposit and other obligations as they come due. The Corporation’s access to funding sources in amounts adequate to finance its activities or on terms that are acceptable to it could be impaired by factors that affect it specifically or the financial services industry or the general economy. Factors that could reduce its access to liquidity sources include a downturn in the markets in which our loans are concentrated or adverse regulatory actions against the Corporation. The Corporation’s access to deposits may also be affected by the liquidity needs of depositors. The Corporation may not be able to replace maturing deposits and advances as necessary in the future, especially if a large number of depositors sought to withdraw their deposits, regardless of the reason. A failure to maintain adequate liquidity could have a material adverse effect on the Corporation’s business, financial condition, and result of operations. The bank failures in March 2023 exemplify the potential serious results of the unexpected inability of insured depository institutions to obtain needed liquidity to satisfy deposit withdrawal requests, including how quickly such requests can accelerate once uninsured depositors lose confidence in an institutions ability to satisfy its obligations to depositors.

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

(a) None.

(b) Not applicable.

(c) Purchases of Equity Securities

The Corporation periodically acquires shares of its common stock directly from shareholders in individually negotiated transactions. On April 21, 2022 First Financial Corporation issued a press release announcing that its Board of Directors has authorized a stock repurchase program pursuant to which up to 10% of the Corporations outstanding shares of common stock, or approximately 1,243,531 shares may be repurchased.

Following is certain information regarding shares of common stock purchased by the Corporation during the quarter covered by this report.

			(c)
			Total Number Of Shares	(c)
	(a)	(b)	Purchased As Part Of	Maximum
	Total Number Of	Average Price	Publicly Announced Plans	Number of Shares That May Yet
	Shares Purchased	Paid Per Share	Or Programs *	Be Purchased *
July 1-31, 2023	7,410	38.00	7,410	739,907
August 1-31, 2023	140,900	37.09	140,900	599,007
September 1-30, 2023	80,147	36.61	80,147	518,860
Total	228,457	36.95	228,457	518,860

41

ITEM 3.Defaults upon Senior Securities.

Not applicable.

ITEM 4.Mine Safety Disclosures

Not applicable.

ITEM 5.Other Information.

During the three months ended September 30, 2023, there were no Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements adopted, modified or terminated by any director or officer of the Corporation.

42

ITEM 6.Exhibits.

Exhibit No.:	Description of Exhibit:
3.1	Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3(i) of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
3.2	Amended and Restated Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3.2 of the Corporation’s Form 8-K filed on February 22, 2021.
3.3	Articles of Amendment to the Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3.1 of the Corporation’s Form 8-K filed on April 27, 2021.
10.1*	Employment Agreement for Norman L. Lowery, dated and effective July 1, 2022, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on July 29, 2022.
10.2*	2001 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
10.5*	2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.7 of the Corporation’s Form 8-K filed on September 4, 2007.
10.6*	2005 Executives Deferred Compensation Plan, incorporated by reference to Exhibit 10.5 of the Corporation’s Form 8-K filed on September 4, 2007.
10.7*	2005 Executives Supplemental Retirement Plan, incorporated by reference to Exhibit 10.6 of the Corporation’s Form 8-K filed on September 4, 2007.
10.9*	First Financial Corporation 2010 Long-Term Incentive Compensation Plan incorporated by reference to Exhibit 10. 9 of the Corporation’s Form 10-K filed March 15, 2011.
10.10*	First Financial Corporation 2011 Short-Term Incentive Compensation Plan incorporated by reference to Exhibit 10.10 of the Corporation’s Form 10-K filed March 15, 2011.
10.11*	First Financial Corporation Amended and Restated 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K for the annual meeting filed on April 27, 2021.
10.12*	Form of Restricted Stock Award Agreement under the First Financial Corporation 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.12 of the Corporation’s Form 10-Q for the quarter ended March 31, 2012 filed on May 10, 2012.
10.13*	Employment Agreement for Norman D. Lowery, effective July 1, 2022, incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed July 29, 2022.
10.14*	Employment Agreement for Rodger A. McHargue, effective July 1, 2022, incorporated by reference to Exhibit 10.2 of the Corporation’s Form 8-K filed July 29, 2022.
10.15*	Employment Agreement for Steven H. Holliday, effective July 1, 2022, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 8-K filed July 29, 2022.
10.16*	Employment Agreement for Mark A. Franklin, effective July 1, 2022, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 8-K filed July 29, 2022.
31.1	Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 by Principal Executive Officer, dated November 8, 2023.
31.2	Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 by Principal Financial Officer, dated November 8, 2023.
32.1	Certification, dated November 8, 2023, of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005 on Form 10-Q for the quarter ended September 30, 2023.
101.1	Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended September 30, 2023, formatted in XBRL pursuant to Rule 405 : (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareholders’ Equity, and (v) Notes to Consolidated Financial Statements, as blocks of text and in detail**.

*Management contract or compensatory plan or arrangement.

**Furnished, not filed, for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

43

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 thereunto duly authorized.

	FIRST FINANCIAL CORPORATION
	(Registrant)
Date: November 8, 2023	By /s/ Norman L. Lowery
	Norman L. Lowery, Chairman, President and CEO
	(Principal Executive Officer)
Date: November 8, 2023	By /s/ Rodger A. McHargue
	Rodger A. McHargue, Treasurer and CFO
	(Principal Financial Officer)

44

EX-31.1

Exhibit 31.1

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Norman L. Lowery, certify that:

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

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 officer(s) 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 l5d-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 purpose 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 fiscal quarter in the 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 officer(s) 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 the 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 controls over financial reporting.

Date: November 8, 2023

By /s/ Norman L. Lowery

Norman L. Lowery,

Chairman, President and CEO

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Rodger A. McHargue, certify that:

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

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 officer(s) 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 l5d-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 purpose 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 fiscal quarter in the 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 officer(s) 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 the 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 controls over financial reporting.

Date: November 8, 2023

By /s/ Rodger A. McHargue

Rodger A. McHargue

Treasurer and CFO

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Sarbanes-Oxley Act of 2002, Section 906

Certification of Principal Executive and Principal Financial Officers

In connection with the Quarterly Report on Form 10-Q of First Financial Corporation (the “Company”) for the Quarterly period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Norman L. Lowery , as the Chief Executive Officer of the Company, and Rodger A. McHargue, as the Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

1.This Report fully complies with the requirements of Sections 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.

November 8, 2023	By /s/ Norman L. Lowery
	Norman L. Lowery, Chairman, President & CEO
	(Principal Executive Officer)
November 8, 2023	By /s/ Rodger A. McHargue
	Rodger A. McHargue, Treasurer & CFO
	(Principal Financial Officer)

XML

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	0-16759
Entity Registrant Name	FIRST FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-1546989
Entity Address, Address Line One	One First Financial Plaza
Entity Address, City or Town	Terre Haute
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47807
City Area Code	812
Local Phone Number	238-6000
Title of 12(b) Security	Common Stock, par value $0.125 per share
Trading Symbol	THFF
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,754,528
Entity Central Index Key	0000714562
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 74,668	$ 222,517
Federal funds sold	688	9,374
Securities available-for-sale	1,225,219	1,330,481
Loans	3,109,731	3,060,263
(Less) plus: Net deferred loan (fees)/costs	7,895	7,175
Allowance for credit losses	(39,034)	(39,779)
Loans, net	3,078,592	3,027,659
Restricted stock	15,398	15,378
Accrued interest receivable	22,546	21,288
Premises and equipment, net	67,424	66,147
Bank-owned life insurance	113,684	115,704
Goodwill	86,985	86,985
Other intangible assets	5,816	6,714
Other real estate owned	63	337
Other assets	93,723	86,697
TOTAL ASSETS	4,784,806	4,989,281
Deposits:
Non-interest-bearing	770,511	857,920
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits	82,741	50,608
Other interest-bearing deposits	3,187,743	3,460,343
Total Deposits	4,040,995	4,368,871
Short-term borrowings	132,734	70,875
Other borrowings	84,578	9,589
Other liabilities	56,331	64,653
TOTAL LIABILITIES	4,314,638	4,513,988
Shareholders' equity
Common stock, $0.125 stated value per share; Authorized shares - 40,000,000; Issued shares-16,137,220 in 2023 and 16,114,992 in 2022; Outstanding shares - 11,754,528 in 2023 and 12,051,964 in 2022	2,014	2,012
Additional paid-in capital	143,855	143,185
Retained earnings	656,610	614,829
Accumulated other comprehensive loss	(176,038)	(139,974)
Less: Treasury shares at cost - 4,382,692 in 2023 and 4,063,028 in 2022	(156,273)	(144,759)
TOTAL SHAREHOLDERS' EQUITY	470,168	475,293
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,784,806	4,989,281
Commercial
ASSETS
Loans	1,775,004	1,798,260
Residential
ASSETS
Loans	687,069	673,464
Consumer
ASSETS
Loans	$ 647,658	$ 588,539

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Common stock, stated value per share	$ 0.125	$ 0.125
Common stock, Authorized shares	40,000,000	40,000,000
Common stock, Issued shares	16,137,220	16,114,992
Common stock, Outstanding shares	11,754,528	12,051,964
Treasury, shares	4,382,692	4,063,028

XML

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
INTEREST INCOME:
Loans, including related fees	$ 49,146	$ 38,021	$ 140,220	$ 104,683
Securities:
Taxable	6,164	5,498	18,631	14,839
Tax-exempt	2,661	2,562	7,937	7,402
Other	752	2,165	2,864	4,178
TOTAL INTEREST INCOME	58,723	48,246	169,652	131,102
INTEREST EXPENSE:
Deposits	13,627	4,644	35,111	8,793
Short-term borrowings	1,923	418	4,025	676
Other borrowings	2,023	80	2,844	249
TOTAL INTEREST EXPENSE	17,573	5,142	41,980	9,718
NET INTEREST INCOME	41,150	43,104	127,672	121,384
Provision for credit losses	1,200	1,050	4,800	(4,750)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	39,950	42,054	122,872	126,134
NON-INTEREST INCOME:
Trust and financial services	1,140	1,015	3,642	3,687
Service charges and fees on deposit accounts	7,099	6,965	20,971	20,698
Other service charges and fees	213	160	613	488
Securities gains, net				5
Interchange income		149	47	418
Loan servicing fees	447	457	997	1,184
Gain on sales of mortgage loans	321	440	811	1,705
Other	2,407	2,954	4,374	7,963
TOTAL NON-INTEREST INCOME	11,627	12,140	31,455	36,148
NON-INTEREST EXPENSE:
Salaries and employee benefits	17,159	15,943	51,263	48,953
Occupancy expense	2,389	2,525	7,120	7,419
Equipment expense	3,580	3,311	10,404	9,177
FDIC Expense	613	556	1,977	1,526
Other	8,524	9,169	25,168	26,447
TOTAL NON-INTEREST EXPENSE	32,265	31,504	95,932	93,522
INCOME BEFORE INCOME TAXES	19,312	22,690	58,395	68,760
Provision for income taxes	3,027	4,639	10,143	14,172
NET INCOME	16,285	18,051	48,252	54,588
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes	(34,934)	(41,060)	(36,504)	(165,893)
Change in funded status of post retirement benefits, net of taxes	146	315	440	944
COMPREHENSIVE INCOME (LOSS)	$ (18,503)	$ (22,694)	$ 12,188	$ (110,361)
PER SHARE DATA
Basic Earnings per Share (in dollars per share)	$ 1.37	$ 1.50	$ 4.02	$ 4.45
Diluted Earnings per Share (in dollars per share)	$ 1.37	$ 1.50	$ 4.02	$ 4.45
Weighted average number of shares outstanding, basic (in shares)	11,901	12,029	11,993	12,270
Weighted average number of shares outstanding, diluted (in shares)	11,901	12,029	11,993	12,270

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Capital	Retained Earnings	Accumulated Other Comprehensive Income/(Loss)	Treasury Stock	Total
Balance at Dec. 31, 2021	$ 2,009	$ 141,979	$ 559,139	$ (2,426)	$ (118,125)	$ 582,576
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income			54,588			54,588
Other comprehensive income (loss)				(164,949)		(164,949)
Omnibus Equity Incentive Plan	2	617				619
Treasury shares purchased					(27,701)	(27,701)
Cash Dividends			(6,507)			(6,507)
Balance at Sep. 30, 2022	2,011	142,596	607,220	(167,375)	(145,826)	438,626
Balance at Jun. 30, 2022	2,011	142,390	589,169	(126,630)	(145,409)	461,531
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income			18,051			18,051
Other comprehensive income (loss)				(40,745)		(40,745)
Omnibus Equity Incentive Plan		206				206
Treasury shares purchased					(417)	(417)
Balance at Sep. 30, 2022	2,011	142,596	607,220	(167,375)	(145,826)	438,626
Balance at Dec. 31, 2022	2,012	143,185	614,829	(139,974)	(144,759)	475,293
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income			48,252			48,252
Other comprehensive income (loss)				(36,064)		(36,064)
Omnibus Equity Incentive Plan	2	670				672
Treasury shares purchased					(11,514)	(11,514)
Cash Dividends			(6,471)			(6,471)
Balance at Sep. 30, 2023	2,014	143,855	656,610	(176,038)	(156,273)	470,168
Balance at Jun. 30, 2023	2,013	143,632	640,325	(141,250)	(147,832)	496,888
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income			16,285			16,285
Other comprehensive income (loss)				(34,788)		(34,788)
Omnibus Equity Incentive Plan	1	223				224
Treasury shares purchased					(8,441)	(8,441)
Balance at Sep. 30, 2023	$ 2,014	$ 143,855	$ 656,610	$ (176,038)	$ (156,273)	$ 470,168

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Treasury stock purchased (in shares)	228,457	9,125	319,664	626,574
Cash Dividends (in dollars per share)			$ 0.54	$ 0.54

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 48,252	$ 54,588
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments	3,817	5,174
Provision for credit losses	4,800	(4,750)
Securities gains		(5)
Depreciation and amortization	4,903	4,615
Restricted stock compensation	672	619
Gain on sale of mortgage loans	(811)	(1,705)
(Gain) Loss on sale of other real estate	26	26
Other, net	4,534	(6,266)
NET CASH FROM OPERATING ACTIVITIES	66,193	52,296
CASH FLOWS FROM INVESTING ACTIVITIES:
Calls, maturities and principal reductions on securities available-for-sale	83,640	141,274
Purchases of securities available-for-sale	(29,650)	(329,564)
Proceeds from loans sold previously classified as portfolio loans		12,802
Loans made to customers, net of repayment	(54,314)	(168,558)
Net change in federal funds sold	8,686	(7,915)
Redemption of restricted stock		1,871
Purchase of restricted stock	(20)	(1,043)
Proceeds from sales of other real estate owned	270	223
Additions to premises and equipment	(5,282)	(2,206)
NET CASH FROM INVESTING ACTIVITIES	3,330	(353,116)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(327,334)	(1,150)
Net change in short-term borrowings	61,859	(4,053)
Dividends paid	(15,383)	(14,459)
Purchase of treasury stock	(11,514)	(27,701)
Proceeds from other borrowings	1,430,000
Maturities of other borrowings	(1,355,000)	(6,402)
NET CASH FROM FINANCING ACTIVITIES	(217,372)	(53,765)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(147,849)	(354,585)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD	222,517	682,807
CASH AND DUE FROM BANKS, END OF PERIOD	$ 74,668	$ 328,222

XML

Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Significant Accounting Policies

Significant Accounting Policies

1.    Significant Accounting Policies

The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. For the nine months ended 2023 and 2022, 22,228 and 18,679 shares were awarded, respectively. These shares had a grant date value of $1.0 million and $847 thousand for 2023 and 2022, vest over three years, and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded.

XML

New accounting standards

9 Months Ended

Sep. 30, 2023

New accounting standards

New accounting standards

2.    New accounting standards

Accounting Pronouncements Adopted:

In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (ASU 2022-02). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (TDRs) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (CECL) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Corporation for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Corporation adopted ASU 2022-02 on January 1, 2023, and has applied the disclosure changes in this document. See Note 3. Allowance for Credit Losses for the additional disclosures.

Recent Accounting Pronouncements:

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 is effective for the Corporation for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption is permitted. The Corporation is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements and related disclosures.

In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASU) No. 2023-02 “Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow 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. This guidance is effective for public business entities for fiscal years including interim periods within those fiscal years, beginning after December 15, 2023. Early

adoption is permitted in any interim period. The Corporation is evaluating ASU 2023-02 and its effect on its consolidated financial statements and related disclosures.

XML

Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Allowance for Credit Losses

Allowance for Credit Losses

3.    Allowance for Credit Losses

The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended September 30.

Allowance for Credit Losses:			September 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907
Provision for credit losses		(199)		(747)		2,303		(157)		1,200
Loans charged-off		(187)		(50)		(3,364)		—		(3,601)
Recoveries		177		67		1,284		—		1,528
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	16,469	$	14,168	$	10,584	$	247	$	41,468
Provision for credit losses		(1,403)		297		2,199		(43)		1,050
Loans charged-off		(2,406)		(57)		(3,190)		—		(5,653)
Recoveries		634		55		1,941		—		2,630
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

The following table presents the activity of the allowance for credit losses by portfolio segment for the nine months ended September 30.

Allowance for Credit Losses:			September 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,949	$	14,568	$	12,104	$	158	$	39,779
Provision for credit losses		(630)		(81)		5,290		221		4,800
Loans charged -off		(702)		(192)		(10,626)		—		(11,520)
Recoveries		624		243		5,108		—		5,975
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	18,883	$	18,316	$	10,721	$	385	$	48,305
Provision for credit losses		(3,835)		(3,952)		3,218		(181)		(4,750)
Loans charged -off		(3,659)		(579)		(7,080)		—		(11,318)
Recoveries		1,905		678		4,675		—		7,258
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

The tables below present the recorded investment in non-performing loans by class of loans.

	September 30, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	20	$	1,566	$	900
Farmland		—		1,677		1,662
Non Farm, Non Residential		—		1,293		1,291
Agriculture		—		1,115		1,103
All Other Commercial		—		21		—
Residential
First Liens		1,177		933		—
Home Equity		71		70		—
Junior Liens		137		200		—
Multifamily		—		548		373
All Other Residential		—		436		—
Consumer
Motor Vehicle		—		3,092		—
All Other Consumer		—		263		—
TOTAL	$	1,405	$	11,214	$	5,329

	December 31, 2022
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	114	$	2,137	$	254
Farmland		—		461		—
Non Farm, Non Residential		—		2,064		2,052
Agriculture		—		186		155
All Other Commercial		—		26		—
Residential
First Liens		666		1,380		—
Home Equity		180		133		—
Junior Liens		197		256		—
Multifamily		—		1,468		—
All Other Residential		—		478		—
Consumer
Motor Vehicle		—		2,549		—
All Other Consumer		—		416		—
TOTAL	$	1,157	$	11,554	$	2,461

The following tables present the amortized cost basis of collateral dependent loans by class of loans:

	September 30, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	3,500	$	—
Farmland		2,094		—
Non Farm, Non Residential		4,239		—
Agriculture		49		1,054
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	10,255	$	1,054

	December 31, 2022
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	4,613	$	1
Farmland		3,289		—
Non Farm, Non Residential		5,123		—
Agriculture		—		155
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		895		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	13,920	$	156

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.

	September 30, 2023
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	520	$	370	$	1,316	$	2,206	$	641,139	$	643,345
Farmland		54		—		1,662		1,716		132,177		133,893
Non Farm, Non Residential		46		—		—		46		419,193		419,239
Agriculture		117		217		1,054		1,388		118,279		119,667
All Other Commercial		13		1,083		—		1,096		468,728		469,824
Residential
First Liens		902		739		1,405		3,046		355,299		358,345
Home Equity		594		33		110		737		62,829		63,566
Junior Liens		374		119		267		760		57,019		57,779
Multifamily		113		30		373		516		186,035		186,551
All Other Residential		—		1		—		1		23,099		23,100
Consumer
Motor Vehicle		9,549		1,578		1,002		12,129		605,264		617,393
All Other Consumer		356		134		16		506		32,510		33,016
TOTAL	$	12,638	$	4,304	$	7,205	$	24,147	$	3,101,571	$	3,125,718

	December 31, 2022
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	1,698	$	529	$	726	$	2,953	$	674,569	$	677,522
Farmland		112		—		—		112		127,498		127,610
Non Farm, Non Residential		274		34		—		308		387,108		387,416
Agriculture		—		1,231		—		1,231		136,451		137,682
All Other Commercial		333		—		14		347		478,095		478,442
Residential
First Liens		4,528		1,203		1,054		6,785		341,131		347,916
Home Equity		305		144		276		725		63,615		64,340
Junior Liens		213		69		327		609		56,367		56,976
Multifamily		317		83		—		400		180,305		180,705
All Other Residential		1,115		350		—		1,465		24,058		25,523
Consumer
Motor Vehicle		15,151		1,930		985		18,066		539,651		557,717
All Other Consumer		341		56		15		412		32,967		33,379
TOTAL	$	24,387	$	5,629	$	3,397	$	33,413	$	3,041,815	$	3,075,228

Loan Modifications Made to Borrowers Experiencing Financial Difficulty:

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

The following table presents the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, by class and by type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each class of financial receivable is also presented below.

										Combination		Combination
										Term		Term		Total
										Extension and		Extension		Class of
	Principal		Payment		Term		Interest Rate			Principal		Interest Rate		Financing
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivable
Residential
Home Equity	$	—	$	—	$	—	$	139	$	—	$	26		0.00	%
Consumer
Motor Vehicle		6		—		104		—		41		41		0.00
TOTAL	$	6	$	—	$	104	$	139	$	41	$	67			%

The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. All loans and leases that have been modified during the nine months ended September 30, 2023 are in a current status of repayment.

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2023.

			Weighted-			Weighted-
			Average			Average
	Principal		Interest Rate			Term
(Dollar amounts in thousands)	Forgiveness		Reduction			Extension
Residential
First Liens	$	—		2.12	%		24
Consumer
Motor Vehicle		13		1.78			23
TOTAL	$	13		2.05	%		23

There were no modified loans that had a payment default during the nine months ended September 30, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

Upon the Corporation’s determination that a modified loan has subsequently been deemed uncollectible, 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.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.

The following tables present the commercial loan portfolio by risk category:

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	67,442	$	134,073	$	114,359	$	42,545	$	44,822	$	103,842	$	84,842	$	591,925
	Special Mention		57		68		10,137		3,213		328		1,001		2,825	$	17,629
	Substandard		17		5,008		2,352		1,068		1,019		8,026		8,012	$	25,502
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,810		1,451		931		548		201		114		—	$	6,055
	Subtotal	$	70,326	$	140,600	$	127,779	$	47,374	$	46,370	$	112,983	$	95,679	$	641,111
	Current period gross charge-offs	$	8	$	20	$	40	$	78	$	-	$	2	$	-	$	148
Farmland	Pass	$	17,799	$	16,393	$	21,274	$	8,364	$	8,928	$	54,026	$	274	$	127,058
	Special Mention		—		—		—		—		—		1,118		—	$	1,118
	Substandard		—		—		—		497		833		1,646		—	$	2,976
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	17,799	$	16,393	$	21,274	$	8,861	$	9,761	$	56,807	$	274	$	131,169
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	52,735	$	120,994	$	69,980	$	25,847	$	21,608	$	113,887	$	4,281	$	409,332
	Special Mention		—		88		1,005		—		854		—		—	$	1,947
	Substandard		587		—		—		—		516		4,993		—	$	6,096
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		683		—		74		—	$	757
	Subtotal	$	53,322	$	121,082	$	70,985	$	26,530	$	22,978	$	118,954	$	4,281	$	418,132
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	8,513	$	11,470	$	7,451	$	6,447	$	7,578	$	17,783	$	52,605	$	111,847
	Special Mention		—		142		—		8		3		609		2,974	$	3,736
	Substandard		—		—		—		—		50		1,279		—	$	1,329
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		54		33		42		28		—		—	$	173
	Subtotal	$	8,529	$	11,666	$	7,484	$	6,497	$	7,659	$	19,671	$	55,579	$	117,085
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	26,467	$	106,465	$	101,778	$	96,167	$	7,168	$	103,476	$	9,479	$	451,000
	Special Mention		—		1,041		—		2,516		—		11,623		—	$	15,180
	Substandard		—		—		18		—		826		5		—	$	849
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		13		—		—		—		465		—	$	478
	Subtotal	$	26,467	$	107,519	$	101,796	$	98,683	$	7,994	$	115,569	$	9,479	$	467,507
	Current period gross charge-offs	$	534	$	-	$	-	$	-	$	20	$	-	$	-	$	554
Residential
Multifamily >5 Residential	Pass	$	27,930	$	63,032	$	32,470	$	22,870	$	6,459	$	24,139	$	111	$	177,011
	Special Mention		—		—		—		361		—		6,599		118	$	7,078
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,107		—		—		256		—	$	1,363
	Subtotal	$	27,930	$	63,032	$	33,577	$	23,231	$	6,459	$	31,367	$	229	$	185,825
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	200,886	$	452,427	$	347,312	$	202,240	$	96,563	$	417,153	$	151,592	$	1,868,173
	Special Mention		57		1,339		11,142		6,098		1,185		20,950		5,917	$	46,688
	Substandard		604		5,008		2,370		1,565		3,244		16,322		8,012	$	37,125
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,826		1,518		2,071		1,273		229		926		—	$	8,843
		$	204,373	$	460,292	$	362,895	$	211,176	$	101,221	$	455,351	$	165,521	$	1,960,829

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	163,479	$	128,012	$	56,830	$	54,208	$	26,514	$	99,522	$	92,110	$	620,675
	Special Mention		2,071		9,738		3,434		2,572		2,061		1,848		453	$	22,177
	Substandard		423		723		1,861		954		3,169		6,264		9,103	$	22,497
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,041		1,408		822		469		149		85		—	$	9,974
	Subtotal	$	173,014	$	139,881	$	62,947	$	58,203	$	31,893	$	107,719	$	101,666	$	675,323
Farmland	Pass	$	16,261	$	22,530	$	9,244	$	9,438	$	10,352	$	48,847	$	340	$	117,012
	Special Mention		—		—		1,164		882		—		2,930		—	$	4,976
	Substandard		—		—		456		608		337		1,969		—	$	3,370
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	16,261	$	22,530	$	10,864	$	10,928	$	10,689	$	53,763	$	340	$	125,375
Non Farm, Non Residential	Pass	$	102,629	$	75,011	$	33,214	$	19,596	$	31,438	$	111,586	$	2,975	$	376,449
	Special Mention		99		1,035		—		921		—		279		—	$	2,334
	Substandard		—		—		—		513		—		6,281		—	$	6,794
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		696		—		—		269		—	$	965
	Subtotal	$	102,728	$	76,046	$	33,910	$	21,030	$	31,438	$	118,415	$	2,975	$	386,542
Agriculture	Pass	$	13,085	$	9,028	$	8,015	$	8,422	$	1,987	$	26,729	$	62,397	$	129,663
	Special Mention		89		—		10		3		—		709		2,519	$	3,330
	Substandard		—		—		—		224		1,201		56		762	$	2,243
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		71		39		68		61		25		—		—	$	264
	Subtotal	$	13,245	$	9,067	$	8,093	$	8,710	$	3,213	$	27,494	$	65,678	$	135,500
Other Commercial	Pass	$	143,941	$	91,615	$	90,845	$	19,259	$	29,143	$	82,535	$	5,602	$	462,940
	Special Mention		23		—		—		10		—		11,911		—	$	11,944
	Substandard		—		23		—		—		—		6		—	$	29
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		82		—		—		29		480		—	$	607
	Subtotal	$	143,980	$	91,720	$	90,845	$	19,269	$	29,172	$	94,932	$	5,602	$	475,520
Residential
Multifamily >5 Residential	Pass	$	50,424	$	33,415	$	46,740	$	6,734	$	4,969	$	27,353	$	96	$	169,731
	Special Mention		—		533		372		—		—		6,795		—	$	7,700
	Substandard		—		—		—		—		—		1,280		—	$	1,280
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		1,124		—		—		—		263		—	$	1,387
	Subtotal	$	50,424	$	35,072	$	47,112	$	6,734	$	4,969	$	35,691	$	96	$	180,098
Total	Pass	$	489,819	$	359,611	$	244,888	$	117,657	$	104,403	$	396,572	$	163,520	$	1,876,470
	Special Mention		2,282		11,306		4,980		4,388		2,061		24,472		2,972	$	52,461
	Substandard		423		746		2,317		2,299		4,707		15,856		9,865	$	36,213
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,128		2,653		1,586		530		203		1,114		—	$	13,214
		$	499,652	$	374,316	$	253,771	$	124,874	$	111,374	$	438,014	$	176,357	$	1,978,358

The Corporation evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on non-accrual status and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the balance of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming:

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	35,883	$	72,998	$	65,931	$	40,751	$	16,167	$	121,304	$	1,970	$	355,004
	Non-performing		—		24		413		222		30		1,541		—	$	2,230
	Subtotal	$	35,883	$	73,022	$	66,344	$	40,973	$	16,197	$	122,845	$	1,970	$	357,234
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	156	$	-	$	156
Home Equity	Performing	$	141	$	271	$	—	$	7	$	94	$	875	$	61,829	$	63,217
	Non-performing		—		51		—		19		—		71		—	$	141
	Subtotal	$	141	$	322	$	—	$	26	$	94	$	946	$	61,829	$	63,358
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	10,899	$	16,419	$	8,781	$	5,926	$	4,609	$	9,037	$	1,625	$	57,296
	Non-performing		—		—		8		104		65		160		—	$	337
	Subtotal	$	10,899	$	16,419	$	8,789	$	6,030	$	4,674	$	9,197	$	1,625	$	57,633
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	24	$	12	$	-	$	36
Other Residential	Performing	$	6,090	$	10,078	$	3,471	$	431	$	653	$	1,557	$	302	$	22,582
	Non-performing		—		—		—		—		394		43		—	$	437
	Subtotal	$	6,090	$	10,078	$	3,471	$	431	$	1,047	$	1,600	$	302	$	23,019
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	221,153	$	236,144	$	80,919	$	55,243	$	15,316	$	3,412	$	—	$	612,187
	Non-performing		66		1,306		461		562		185		31		—	$	2,611
	Subtotal	$	221,219	$	237,450	$	81,380	$	55,805	$	15,501	$	3,443	$	—	$	614,798
	Current period gross charge-offs	$	284	$	5,802	$	2,590	$	1,159	$	359	$	161	$	-	$	10,355
Other Consumer	Performing	$	10,564	$	8,336	$	4,462	$	2,483	$	850	$	748	$	5,149	$	32,592
	Non-performing		—		28		160		51		20		6		3	$	268
	Subtotal	$	10,564	$	8,364	$	4,622	$	2,534	$	870	$	754	$	5,152	$	32,860
	Current period gross charge-offs	$	6	$	83	$	49	$	30	$	3	$	5	$	95	$	271
Total	Performing	$	284,730	$	344,246	$	163,564	$	104,841	$	37,689	$	136,933	$	70,875	$	1,142,878
	Non-performing		66		1,409		1,042		958		694		1,852		3	$	6,024
Total other loans		$	284,796	$	345,655	$	164,606	$	105,799	$	38,383	$	138,785	$	70,878	$	1,148,902

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Residential
First Liens	Performing	$	71,607	$	70,197	$	45,080	$	16,968	$	20,258	$	117,488	$	3,245	$	344,843
	Non-performing		106		—		—		141		100		1,782		—	$	2,129
	Subtotal	$	71,713	$	70,197	$	45,080	$	17,109	$	20,358	$	119,270	$	3,245	$	346,972
Home Equity	Performing	$	1,995	$	943	$	8	$	115	$	55	$	820	$	59,875	$	63,811
	Non-performing		—		—		78		—		14		40		176	$	308
	Subtotal	$	1,995	$	943	$	86	$	115	$	69	$	860	$	60,051	$	64,119
Junior Liens	Performing	$	19,074	$	10,485	$	7,507	$	5,830	$	5,366	$	6,195	$	1,928	$	56,385
	Non-performing		—		4		77		90		139		141		—	$	451
	Subtotal	$	19,074	$	10,489	$	7,584	$	5,920	$	5,505	$	6,336	$	1,928	$	56,836
Other Residential	Performing	$	11,542	$	9,923	$	501	$	915	$	498	$	1,582	$	—	$	24,961
	Non-performing		—		—		—		425		35		18		—	$	478
	Subtotal	$	11,542	$	9,923	$	501	$	1,340	$	533	$	1,600	$	—	$	25,439
Consumer
Motor Vehicle	Performing	$	306,565	$	118,362	$	88,144	$	29,004	$	8,652	$	2,230	$	6	$	552,963
	Non-performing		813		739		437		237		66		47		—	$	2,339
	Subtotal	$	307,378	$	119,101	$	88,581	$	29,241	$	8,718	$	2,277	$	6	$	555,302
Other Consumer	Performing	$	13,426	$	7,914	$	4,109	$	1,302	$	429	$	819	$	4,819	$	32,818
	Non-performing		18		247		89		39		12		12		2	$	419
	Subtotal	$	13,444	$	8,161	$	4,198	$	1,341	$	441	$	831	$	4,821	$	33,237
Total	Performing	$	424,209	$	217,824	$	145,349	$	54,134	$	35,258	$	129,134	$	69,873	$	1,075,781
	Non-performing		937		990		681		932		366		2,040		178	$	6,124
Total other loans		$	425,146	$	218,814	$	146,030	$	55,066	$	35,624	$	131,174	$	70,051	$	1,081,905

XML

Securities

9 Months Ended

Sep. 30, 2023

Securities

Securities

4.    Securities

The amortized cost and fair value of the Corporation’s investments are shown below. All securities are classified as available-for-sale.

	September 30, 2023
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	104,753	$	4	$	(14,824)	$	89,933
Mortgage Backed Securities - residential		669,417		2		(112,729)		556,690
Mortgage Backed Securities - commercial		7,958		—		(674)		7,284
Collateralized mortgage obligations		214,507		—		(33,551)		180,956
State and municipal obligations		402,144		30		(49,621)		352,553
Municipal taxable		39,875		—		(7,247)		32,628
U.S. Treasury		2,177		—		(26)		2,151
Collateralized debt obligations		—		3,024		—		3,024
TOTAL	$	1,440,831	$	3,060	$	(218,672)	$	1,225,219

	December 31, 2022
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	110,226	$	24	$	(11,777)	$	98,473
Mortgage Backed Securities-residential		711,131		133		(91,016)		620,248
Mortgage Backed Securities-commercial		10,103		—		(426)		9,677
Collateralized mortgage obligations		228,344		60		(24,919)		203,485
State and municipal obligations		396,522		745		(37,114)		360,153
Municipal taxable		39,321		41		(6,847)		32,515
U.S. Treasury		2,979		—		(35)		2,944
Collateralized debt obligations		—		2,986		—		2,986
TOTAL	$	1,498,626	$	3,989	$	(172,134)	$	1,330,481

Contractual maturities of debt securities at September 30, 2023 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	9,687	$	9,572
Due after one but within five years		44,613		42,259
Due after five but within ten years		101,584		96,076
Due after ten years		393,065		332,382
		548,949		480,289
Mortgage-backed securities and collateralized mortgage obligations		891,882		744,930
TOTAL	$	1,440,831	$	1,225,219

There were zero in gross gains and zero in losses from investment sales/calls realized by the Corporation for the three and nine months ended September 30, 2023. For the three and nine months ended September 30, 2022 there were zero and $5 thousand in gross gains and zero in losses on sales/calls of investment securities.

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2023 and December 31, 2022.

	September 30, 2023
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	3,684	$	(160)	$	85,832	$	(14,664)	$	89,516	$	(14,824)
Mortgage Backed Securities - Residential		13,339		(452)		543,186		(112,277)		556,525		(112,729)
Mortgage Backed Securities - Commercial		—		—		7,284		(674)		7,284		(674)
Collateralized mortgage obligations		15,852		(613)		165,104		(32,938)		180,956		(33,551)
State and municipal obligations		145,686		(4,162)		197,579		(45,459)		343,265		(49,621)
Municipal taxable		1,771		(44)		30,357		(7,203)		32,128		(7,247)
U.S. Treasury		—		—		2,151		(26)		2,151		(26)
Total temporarily impaired securities	$	180,332	$	(5,431)	$	1,031,493	$	(213,241)	$	1,211,825	$	(218,672)

	December 31, 2022
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	58,462	$	(4,034)	$	38,959	$	(7,743)	$	97,421	$	(11,777)
Mortgage Backed Securities - Residential		234,488		(19,757)		379,520		(71,259)		614,008		(91,016)
Mortgage Backed Securities - Commercial		9,677		(426)		—		—		9,677		(426)
Collateralized mortgage obligations		135,135		(11,331)		63,792		(13,588)		198,927		(24,919)
State and municipal obligations		233,439		(24,291)		41,510		(12,823)		274,949		(37,114)
Municipal taxable		18,637		(3,706)		12,837		(3,141)		31,474		(6,847)
U.S. Treasury		2,944		(35)		—		—		2,944		(35)
Total temporarily impaired securities	$	692,782	$	(63,580)	$	536,618	$	(108,554)	$	1,229,400	$	(172,134)

Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for impairment related to credit losses by segregating the portfolio into two general segments.

In evaluating for impairment, management considers the reason for the decline, the extent of the decline, the duration of the decline and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security’s amortized cost is written down to fair value through income. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, 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. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.

Gross unrealized losses on investment securities were $218.7 million as of September 30, 2023 and $172.1 million as of December 31, 2022. Management believes these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. The portfolio contains primarily government agency, agency backed mortgage backed securities (“MBS”), and collateralized mortgage obligations (“CMO”), which are issued by government sponsored enterprises and are backed by the full faith and credit of the United States government. Secondarily, the Corporation invests in municipal securities issued by state and local governments. Of these, almost half are either insured or contain state enhancements. On the remaining, credit is monitored by the investment committee. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollar amounts in thousands)	2023		2022		2023		2022
Beginning balance	$	2,974	$	2,974	$	2,974	$	2,974
Reductions for securities called during the period		—		—		—		—
Ending balance	$	2,974	$	2,974	$	2,974	$	2,974

XML

Fair Value

9 Months Ended

Sep. 30, 2023

Fair Value

Fair Value

5.    Fair Value

FASB ASC No. 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair value of most securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined. These securities are primarily trust preferred securities and investments in state and municipal securities. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurements.

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	September 30, 2023
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	89,933	$	—	$	89,933
Mortgage Backed Securities-residential		—		556,690		—		556,690
Mortgage Backed Securities-commercial		—		7,284		—		7,284
Collateralized mortgage obligations		—		180,956		—		180,956
State and municipal		—		351,373		1,180		352,553
Municipal taxable		—		32,628		—		32,628
U.S. Treasury		—		2,151		—		2,151
Collateralized debt obligations		—		—		3,024		3,024
TOTAL	$	—	$	1,221,015	$	4,204	$	1,225,219
Derivative Assets				3,608
Derivative Liabilities				(3,608)

	December 31, 2022
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	98,473	$	—	$	98,473
Mortgage Backed Securities-residential		—		620,248		—		620,248
Mortgage Backed Securities-commercial		—		9,677		—		9,677
Collateralized mortgage obligations		—		203,485		—		203,485
State and municipal		—		358,608		1,545		360,153
Municipal taxable		—		32,515		—		32,515
U.S. Treasury		—		2,944		—		2,944
Collateralized debt obligations		—		—		2,986		2,986
TOTAL	$	—	$	1,325,950	$	4,531	$	1,330,481
Derivative Assets				2,838
Derivative Liabilities				(2,838)

There were no transfers between Level 1 and Level 2 during 2023 and 2022.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2023 and the year ended December 31, 2022.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, July 1	$	1,180	$	2,941	$	4,121
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		83		83
Transfers		—		—		—
Settlements		—		—		—
Ending balance, September 30	$	1,180	$	3,024	$	4,204

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,545	$	2,986	$	4,531
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		38		38
Transfers		—		—		—
Settlements		(365)		—		(365)
Ending balance, September 30	$	1,180	$	3,024	$	4,204

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2022
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,895	$	3,359	$	5,254
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		(373)		(373)
Purchases		—		—		—
Settlements		(350)		—		(350)
Ending balance, December 31	$	1,545	$	2,986	$	4,531

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2023.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,180	Discounted cash flow	Discount rate	4.04%-4.44	%
Collateralized debt obligations	$	3,024	Discounted cash flow	Discount rate	7.22	%
Collateral dependent loans	$	1,812	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2022.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,545	Discounted cash flow	Discount rate	3.73%-4.44	%
Collateralized debt obligations	$	2,986	Discounted cash flow	Discount rate	5.34	%
Collateral dependent loans		4,477	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional

discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and individually evaluated loans carried at fair value are primarily comprised of smaller balance properties.

The carrying amounts and estimated fair value of financial instruments at September 30, 2023 and December 31, 2022, are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully. Security fair values were described previously. For fixed-rate, collectively evaluated loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and considering credit risk. The valuation of individually evaluated loans was described previously. Loan fair value estimates represent an exit price. Fair values of loans held for sale are based on market bids on the loans or similar loans. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material.

	September 30, 2023
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	74,668	$	25,257	$	49,411	$	—	$	74,668
Federal funds sold		688		—		688		—		688
Securities available-for-sale		1,225,219		—		1,221,015		4,204		1,225,219
Restricted stock		15,398		n/a		n/a		n/a		n/a
Loans, net		3,078,592		—		—		2,901,310		2,901,310
Accrued interest receivable		22,546		—		6,837		15,709		22,546
Deposits		(4,040,995)		—		(4,035,772)		—		(4,035,772)
Short-term borrowings		(132,734)		—		(132,734)		—		(132,734)
Other borrowings		(84,578)		—		(84,614)		—		(84,614)
Accrued interest payable		(1,929)		—		(1,929)		—		(1,929)

	December 31, 2022
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	222,517	$	29,400	$	193,117	$	—	$	222,517
Federal funds sold		9,374		—		9,374		—		9,374
Securities available-for-sale		1,330,481		—		1,325,950		4,531		1,330,481
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,027,659		—		—		2,930,680		2,930,680
Accrued interest receivable		21,288		—		5,529		15,759		21,288
Deposits		(4,368,871)		—		(4,369,402)		—		(4,369,402)
Short-term borrowings		(70,875)		—		(70,875)		—		(70,875)
Other borrowings		(9,589)		—		(8,788)		—		(8,788)
Accrued interest payable		(483)		—		(483)		—		(483)

XML

Borrowings

9 Months Ended

Sep. 30, 2023

Borrowings

Borrowings

6.    Borrowings

Short-term borrowings:

Period–end short-term borrowings were comprised of the following:

(Dollar amounts in thousands)	September 30, 2023		December 31, 2022
Federal Funds Purchased	$	63,425	$	3,000
Repurchase Agreements		69,309		67,875
	$	132,734	$	70,875

The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

Collateral pledged to repurchase agreements by remaining maturity are as follows:

	September 30, 2023
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	63,008	$	300	$	1,450	$	4,551	$	69,309

	December 31, 2022
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	63,335	$	—	$	4,175	$	365	$	67,875

Other borrowings:

Other borrowings at September 30, 2023 and December 31, 2022 are summarized as follows:

(Dollar amounts in thousands)	September 30, 2023		December 31, 2022
FHLB advances	$	84,578	$	9,589
TOTAL	$	84,578	$	9,589

The aggregate minimum annual retirements of other borrowings are as follows:

Twelve Months Ended September 30,

2024	$	78,618
2025		1,007
2026		4,953
2027		—
2028		—
Thereafter		—
	$	84,578

At September 30, 2023 and December 31, 2022, other borrowings are summarized as follows: The Corporation’s subsidiary bank is a member of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances. There are $84.6 million of advances from the FHLB at September 30, 2023, and $9.6 million of advances at December 31, 2022. FHLB advances are, generally due in full at maturity. They are secured by eligible securities and a blanket pledge on real estate loan collateral.

XML

Components of Net Periodic Benefit Cost

9 Months Ended

Sep. 30, 2023

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

7.    Components of Net Periodic Benefit Cost

	Three Months Ended September 30,								Nine Months Ended September 30,
					Post-Retirement								Post-Retirement
	Pension Benefits				Health Benefits				Pension Benefits				Health Benefits
(Dollar amounts in thousands)	2023		2022		2023		2022		2023		2022		2023		2022
Service cost	$	157	$	297	$	5	$	8	$	471	$	892	$	15	$	25
Interest cost		956		707		38		28		2,868		2,120		115		83
Expected return on plan assets		(970)		(1,227)		—		—		(2,909)		(3,682)		—		—
Net amortization of prior service cost		—		—		—		—		—		—		—		—
Net amortization of net (gain) loss		188		315		(13)		—		564		944		(40)		—
Net Periodic Benefit Cost	$	331	$	92	$	30	$	36	$	994	$	274	$	90	$	108

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2022 that it expected to contribute zero and $642 thousand respectively to its Pension Plan and ESOP and $245 thousand to the Post Retirement Health Benefits Plan in 2023. No contributions have been made to the Pension Plan thus far in 2023. Contributions of $163 thousand have been made through the first nine months of 2023 for the Post Retirement Health Benefits plan. No contributions have been made in 2023 for the ESOP. The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit. In the first nine months of 2023 and 2022 there has been $1.9 million and $1.7 million of expense accrued for potential contributions to these alternative retirement benefit options.

XML

Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2023

Revenue from Contracts with Customers

Revenue from Contracts with Customers

8.    Revenue from Contracts with Customers

All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Corporation’s sources of Non-Interest Income for the three and nine months ended September 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollar amounts in thousands)	2023		2022		2023		2022
Non-interest income
Service charges on deposits and debit card fee income	$	7,099	$	6,965	$	20,971	$	20,698
Asset management fees		1,140		1,015		3,642		3,687
Interchange income		—		149		47		418
Net gains on sales of loans (a)		321		440		811		1,705
Loan servicing fees (a)		447		457		997		1,184
Net gains/(losses) on sales of securities (a)		—		—		—		5
Other service charges and fees (a)		213		160		613		488
Other (b)		2,407		2,954		4,374		7,963	(c)
Total non-interest income	$	11,627	$	12,140	$	31,455	$	36,148

(a)Not within the scope of ASC 606.

(b)The Other category includes gains/(losses) on the sale of OREO for the three months ended September 30, 2023 and September 30, 2022, totaling zero, and for the nine months ended for the same periods, totaling $(31) thousand and $85 thousand, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.

(c)Legal settlement totaling $4 million received in first quarter 2022.

Service charges on deposits: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. 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 Corporation 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 Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Asset management fees: The Corporation earns asset management fees from its contracts with trust customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date. Other related services provided and the fees the Corporation earns, which are based on a fixed fee schedule, are recognized when the services are rendered.

Interchange income: The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Gains/Losses on sales of OREO: The Corporation 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 an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

XML

Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

9.   Accumulated Other Comprehensive Income

The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive income/(loss) for the three and nine months ended September 30, 2023 and 2022.

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, July 1,	$	(130,466)	$	(10,784)	$	(141,250)
Change in other comprehensive income (loss) before reclassification		(34,934)		—		(34,934)
Amounts reclassified from accumulated other comprehensive income		—		146		146
Net current period other comprehensive income (loss)		(34,934)		146		(34,788)
Ending balance, September 30,	$	(165,400)	$	(10,638)	$	(176,038)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(128,896)	$	(11,078)	$	(139,974)
Change in other comprehensive income (loss) before reclassification		(36,504)		—		(36,504)
Amounts reclassified from accumulated other comprehensive income		—		440		440
Net current period other comprehensive income (loss)		(36,504)		440		(36,064)
Ending balance, September 30,	$	(165,400)	$	(10,638)	$	(176,038)

	Unrealized
	gains and
	(Losses) on available-		2022
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, July 1,	$	(109,159)	$	(17,471)	$	(126,630)
Change in other comprehensive income (loss) before reclassification		(41,060)		—		(41,060)
Amounts reclassified from accumulated other comprehensive income		—		315		315
Net current period other comprehensive income (loss)		(41,060)		315		(40,745)
Ending balance, September 30,	$	(150,219)	$	(17,156)	$	(167,375)

	Unrealized
	gains and
	(Losses) on available-		2022
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	15,674	$	(18,100)	$	(2,426)
Change in other comprehensive income (loss) before reclassification		(165,889)		—		(165,889)
Amounts reclassified from accumulated other comprehensive income		(4)		944		940
Net current period other comprehensive income (loss)		(165,893)		944		(164,949)
Ending balance, September 30,	$	(150,219)	$	(17,156)	$	(167,375)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	7/1/2023		Change		9/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(132,671)	$	(34,997)	$	(167,668)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,205		63		2,268
Total unrealized loss on securities available-for-sale	$	(130,466)	$	(34,934)	$	(165,400)
Unrealized gain (loss) on retirement plans		(10,784)		146		(10,638)
TOTAL	$	(141,250)	$	(34,788)	$	(176,038)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2023		Change		9/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,135)	$	(36,533)	$	(167,668)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,239		29		2,268
Total unrealized gain (loss) on securities available-for-sale	$	(128,896)	$	(36,504)	$	(165,400)
Unrealized gain (loss) on retirement plans		(11,078)		440		(10,638)
TOTAL	$	(139,974)	$	(36,064)	$	(176,038)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	7/1/2022		Change		9/30/2022
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(111,474)	$	(41,078)	$	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,315		18		2,333
Total unrealized gain (loss) on securities available-for-sale	$	(109,159)	$	(41,060)	$	(150,219)
Unrealized loss on retirement plans		(17,471)		315		(17,156)
TOTAL	$	(126,630)	$	(40,745)	$	(167,375)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2022		Change		9/30/2022
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	13,155	$	(165,707)	$	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,519		(186)		2,333
Total unrealized income (loss) on securities available-for-sale	$	15,674	$	(165,893)	$	(150,219)
Unrealized gain (loss) on retirement plans		(18,100)		944		(17,156)
TOTAL	$	(2,426)	$	(164,949)	$	(167,375)

	Three Months Ended September 30, 2023
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(195)	(a)	Salary and benefits
retirement plan items		49		Income tax expense
	$	(146)		Net of tax
Total reclassifications for the period	$	(146)		Net of tax

(a)Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Nine Months Ended September 30, 2023
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(587)	(a)	Salary and benefits
retirement plan items		147		Income tax expense
	$	(440)		Net of tax
Total reclassifications for the period	$	(440)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Three Months Ended September 30, 2022
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(420)	(a)	Salary and benefits
retirement plan items		105		Income tax expense
	$	(315)		Net of tax
Total reclassifications for the period	$	(315)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Nine Months Ended September 30, 2022
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	5		Net securities gains (losses)
on available-for-sale		(1)		Income tax expense
securities	$	4		Net of tax
Amortization of	$	(1,260)	(a)	Salary and benefits
retirement plan items		316		Income tax expense
	$	(944)		Net of tax
Total reclassifications for the period	$	(940)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

XML

Leases

9 Months Ended

Sep. 30, 2023

Leases

Leases

10.   Leases

The Corporation leases certain branches under operating leases. At September 30, 2023, the Corporation had lease liabilities totaling $5,657,000 and right-of-use assets totaling $5,599,000 related to these leases. At December 31, 2022, the Corporation had lease liabilities totaling $5,885,000 and right-of-use assets totaling $5,840,000 related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At September 30, 2023, the weighted average remaining lease term for operating leases was 9.2 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.16%.

The calculated amount of the lease liabilities and right-of-use assets are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Corporation’s lease agreements often include one or more options to renew at the Corporation’s discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the lease liability and right-of-use asset. Regarding the discount rate, the new standard requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

The following table represents lease costs and other lease information. As the Corporation elected, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

Lease costs were as follows:

	Nine Months Ended
(Dollar amounts in thousands)	September 30, 2023
Operating lease cost	$	766
Short-term lease cost		100
Variable lease cost		11
Total lease cost	$	877
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities		730
Right-of-use assets obtained in exchange for new operating lease liabilities		378

Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2023 were as follows:

(Dollar amounts in thousands)	September 30, 2023
Twelve Months Ended September 30,
2024	$	904
2025		882
2026		812
2027		771
2028		708
Thereafter		2,354
Total Future Minimum Lease Payments		6,431
Amounts Representing Interest		(774)
Present Value of Net Future Minimum Lease Payments	$	5,657

XML

Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Allowance for Credit Losses

Schedule of allowances for loan losses by portfolio segment

The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended September 30.

Allowance for Credit Losses:			September 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907
Provision for credit losses		(199)		(747)		2,303		(157)		1,200
Loans charged-off		(187)		(50)		(3,364)		—		(3,601)
Recoveries		177		67		1,284		—		1,528
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	16,469	$	14,168	$	10,584	$	247	$	41,468
Provision for credit losses		(1,403)		297		2,199		(43)		1,050
Loans charged-off		(2,406)		(57)		(3,190)		—		(5,653)
Recoveries		634		55		1,941		—		2,630
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

The following table presents the activity of the allowance for credit losses by portfolio segment for the nine months ended September 30.

Allowance for Credit Losses:			September 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,949	$	14,568	$	12,104	$	158	$	39,779
Provision for credit losses		(630)		(81)		5,290		221		4,800
Loans charged -off		(702)		(192)		(10,626)		—		(11,520)
Recoveries		624		243		5,108		—		5,975
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	18,883	$	18,316	$	10,721	$	385	$	48,305
Provision for credit losses		(3,835)		(3,952)		3,218		(181)		(4,750)
Loans charged -off		(3,659)		(579)		(7,080)		—		(11,318)
Recoveries		1,905		678		4,675		—		7,258
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

Schedule of recorded investment in non-performing loans by class of loans

	September 30, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	20	$	1,566	$	900
Farmland		—		1,677		1,662
Non Farm, Non Residential		—		1,293		1,291
Agriculture		—		1,115		1,103
All Other Commercial		—		21		—
Residential
First Liens		1,177		933		—
Home Equity		71		70		—
Junior Liens		137		200		—
Multifamily		—		548		373
All Other Residential		—		436		—
Consumer
Motor Vehicle		—		3,092		—
All Other Consumer		—		263		—
TOTAL	$	1,405	$	11,214	$	5,329

	December 31, 2022
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	114	$	2,137	$	254
Farmland		—		461		—
Non Farm, Non Residential		—		2,064		2,052
Agriculture		—		186		155
All Other Commercial		—		26		—
Residential
First Liens		666		1,380		—
Home Equity		180		133		—
Junior Liens		197		256		—
Multifamily		—		1,468		—
All Other Residential		—		478		—
Consumer
Motor Vehicle		—		2,549		—
All Other Consumer		—		416		—
TOTAL	$	1,157	$	11,554	$	2,461

Schedule of amortized cost basis of collateral dependent loans

	September 30, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	3,500	$	—
Farmland		2,094		—
Non Farm, Non Residential		4,239		—
Agriculture		49		1,054
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	10,255	$	1,054

	December 31, 2022
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	4,613	$	1
Farmland		3,289		—
Non Farm, Non Residential		5,123		—
Agriculture		—		155
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		895		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	13,920	$	156

Schedule of aging of the recorded investment in loans by past due category and class of loans

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.

	September 30, 2023
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	520	$	370	$	1,316	$	2,206	$	641,139	$	643,345
Farmland		54		—		1,662		1,716		132,177		133,893
Non Farm, Non Residential		46		—		—		46		419,193		419,239
Agriculture		117		217		1,054		1,388		118,279		119,667
All Other Commercial		13		1,083		—		1,096		468,728		469,824
Residential
First Liens		902		739		1,405		3,046		355,299		358,345
Home Equity		594		33		110		737		62,829		63,566
Junior Liens		374		119		267		760		57,019		57,779
Multifamily		113		30		373		516		186,035		186,551
All Other Residential		—		1		—		1		23,099		23,100
Consumer
Motor Vehicle		9,549		1,578		1,002		12,129		605,264		617,393
All Other Consumer		356		134		16		506		32,510		33,016
TOTAL	$	12,638	$	4,304	$	7,205	$	24,147	$	3,101,571	$	3,125,718

	December 31, 2022
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	1,698	$	529	$	726	$	2,953	$	674,569	$	677,522
Farmland		112		—		—		112		127,498		127,610
Non Farm, Non Residential		274		34		—		308		387,108		387,416
Agriculture		—		1,231		—		1,231		136,451		137,682
All Other Commercial		333		—		14		347		478,095		478,442
Residential
First Liens		4,528		1,203		1,054		6,785		341,131		347,916
Home Equity		305		144		276		725		63,615		64,340
Junior Liens		213		69		327		609		56,367		56,976
Multifamily		317		83		—		400		180,305		180,705
All Other Residential		1,115		350		—		1,465		24,058		25,523
Consumer
Motor Vehicle		15,151		1,930		985		18,066		539,651		557,717
All Other Consumer		341		56		15		412		32,967		33,379
TOTAL	$	24,387	$	5,629	$	3,397	$	33,413	$	3,041,815	$	3,075,228

Schedule of loans and leases that were modified and the financial effect of loan and lease modifications

The following table presents the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, by class and by type of modification.

										Combination		Combination
										Term		Term		Total
										Extension and		Extension		Class of
	Principal		Payment		Term		Interest Rate			Principal		Interest Rate		Financing
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivable
Residential
Home Equity	$	—	$	—	$	—	$	139	$	—	$	26		0.00	%
Consumer
Motor Vehicle		6		—		104		—		41		41		0.00
TOTAL	$	6	$	—	$	104	$	139	$	41	$	67			%

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2023.

			Weighted-			Weighted-
			Average			Average
	Principal		Interest Rate			Term
(Dollar amounts in thousands)	Forgiveness		Reduction			Extension
Residential
First Liens	$	—		2.12	%		24
Consumer
Motor Vehicle		13		1.78			23
TOTAL	$	13		2.05	%		23

Schedule of commercial loan portfolio by risk category

The following tables present the commercial loan portfolio by risk category:

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	67,442	$	134,073	$	114,359	$	42,545	$	44,822	$	103,842	$	84,842	$	591,925
	Special Mention		57		68		10,137		3,213		328		1,001		2,825	$	17,629
	Substandard		17		5,008		2,352		1,068		1,019		8,026		8,012	$	25,502
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,810		1,451		931		548		201		114		—	$	6,055
	Subtotal	$	70,326	$	140,600	$	127,779	$	47,374	$	46,370	$	112,983	$	95,679	$	641,111
	Current period gross charge-offs	$	8	$	20	$	40	$	78	$	-	$	2	$	-	$	148
Farmland	Pass	$	17,799	$	16,393	$	21,274	$	8,364	$	8,928	$	54,026	$	274	$	127,058
	Special Mention		—		—		—		—		—		1,118		—	$	1,118
	Substandard		—		—		—		497		833		1,646		—	$	2,976
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	17,799	$	16,393	$	21,274	$	8,861	$	9,761	$	56,807	$	274	$	131,169
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	52,735	$	120,994	$	69,980	$	25,847	$	21,608	$	113,887	$	4,281	$	409,332
	Special Mention		—		88		1,005		—		854		—		—	$	1,947
	Substandard		587		—		—		—		516		4,993		—	$	6,096
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		683		—		74		—	$	757
	Subtotal	$	53,322	$	121,082	$	70,985	$	26,530	$	22,978	$	118,954	$	4,281	$	418,132
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	8,513	$	11,470	$	7,451	$	6,447	$	7,578	$	17,783	$	52,605	$	111,847
	Special Mention		—		142		—		8		3		609		2,974	$	3,736
	Substandard		—		—		—		—		50		1,279		—	$	1,329
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		54		33		42		28		—		—	$	173
	Subtotal	$	8,529	$	11,666	$	7,484	$	6,497	$	7,659	$	19,671	$	55,579	$	117,085
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	26,467	$	106,465	$	101,778	$	96,167	$	7,168	$	103,476	$	9,479	$	451,000
	Special Mention		—		1,041		—		2,516		—		11,623		—	$	15,180
	Substandard		—		—		18		—		826		5		—	$	849
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		13		—		—		—		465		—	$	478
	Subtotal	$	26,467	$	107,519	$	101,796	$	98,683	$	7,994	$	115,569	$	9,479	$	467,507
	Current period gross charge-offs	$	534	$	-	$	-	$	-	$	20	$	-	$	-	$	554
Residential
Multifamily >5 Residential	Pass	$	27,930	$	63,032	$	32,470	$	22,870	$	6,459	$	24,139	$	111	$	177,011
	Special Mention		—		—		—		361		—		6,599		118	$	7,078
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,107		—		—		256		—	$	1,363
	Subtotal	$	27,930	$	63,032	$	33,577	$	23,231	$	6,459	$	31,367	$	229	$	185,825
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	200,886	$	452,427	$	347,312	$	202,240	$	96,563	$	417,153	$	151,592	$	1,868,173
	Special Mention		57		1,339		11,142		6,098		1,185		20,950		5,917	$	46,688
	Substandard		604		5,008		2,370		1,565		3,244		16,322		8,012	$	37,125
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,826		1,518		2,071		1,273		229		926		—	$	8,843
		$	204,373	$	460,292	$	362,895	$	211,176	$	101,221	$	455,351	$	165,521	$	1,960,829

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	163,479	$	128,012	$	56,830	$	54,208	$	26,514	$	99,522	$	92,110	$	620,675
	Special Mention		2,071		9,738		3,434		2,572		2,061		1,848		453	$	22,177
	Substandard		423		723		1,861		954		3,169		6,264		9,103	$	22,497
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,041		1,408		822		469		149		85		—	$	9,974
	Subtotal	$	173,014	$	139,881	$	62,947	$	58,203	$	31,893	$	107,719	$	101,666	$	675,323
Farmland	Pass	$	16,261	$	22,530	$	9,244	$	9,438	$	10,352	$	48,847	$	340	$	117,012
	Special Mention		—		—		1,164		882		—		2,930		—	$	4,976
	Substandard		—		—		456		608		337		1,969		—	$	3,370
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	16,261	$	22,530	$	10,864	$	10,928	$	10,689	$	53,763	$	340	$	125,375
Non Farm, Non Residential	Pass	$	102,629	$	75,011	$	33,214	$	19,596	$	31,438	$	111,586	$	2,975	$	376,449
	Special Mention		99		1,035		—		921		—		279		—	$	2,334
	Substandard		—		—		—		513		—		6,281		—	$	6,794
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		696		—		—		269		—	$	965
	Subtotal	$	102,728	$	76,046	$	33,910	$	21,030	$	31,438	$	118,415	$	2,975	$	386,542
Agriculture	Pass	$	13,085	$	9,028	$	8,015	$	8,422	$	1,987	$	26,729	$	62,397	$	129,663
	Special Mention		89		—		10		3		—		709		2,519	$	3,330
	Substandard		—		—		—		224		1,201		56		762	$	2,243
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		71		39		68		61		25		—		—	$	264
	Subtotal	$	13,245	$	9,067	$	8,093	$	8,710	$	3,213	$	27,494	$	65,678	$	135,500
Other Commercial	Pass	$	143,941	$	91,615	$	90,845	$	19,259	$	29,143	$	82,535	$	5,602	$	462,940
	Special Mention		23		—		—		10		—		11,911		—	$	11,944
	Substandard		—		23		—		—		—		6		—	$	29
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		82		—		—		29		480		—	$	607
	Subtotal	$	143,980	$	91,720	$	90,845	$	19,269	$	29,172	$	94,932	$	5,602	$	475,520
Residential
Multifamily >5 Residential	Pass	$	50,424	$	33,415	$	46,740	$	6,734	$	4,969	$	27,353	$	96	$	169,731
	Special Mention		—		533		372		—		—		6,795		—	$	7,700
	Substandard		—		—		—		—		—		1,280		—	$	1,280
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		1,124		—		—		—		263		—	$	1,387
	Subtotal	$	50,424	$	35,072	$	47,112	$	6,734	$	4,969	$	35,691	$	96	$	180,098
Total	Pass	$	489,819	$	359,611	$	244,888	$	117,657	$	104,403	$	396,572	$	163,520	$	1,876,470
	Special Mention		2,282		11,306		4,980		4,388		2,061		24,472		2,972	$	52,461
	Substandard		423		746		2,317		2,299		4,707		15,856		9,865	$	36,213
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,128		2,653		1,586		530		203		1,114		—	$	13,214
		$	499,652	$	374,316	$	253,771	$	124,874	$	111,374	$	438,014	$	176,357	$	1,978,358

The Corporation evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on non-accrual status and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the balance of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming:

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	35,883	$	72,998	$	65,931	$	40,751	$	16,167	$	121,304	$	1,970	$	355,004
	Non-performing		—		24		413		222		30		1,541		—	$	2,230
	Subtotal	$	35,883	$	73,022	$	66,344	$	40,973	$	16,197	$	122,845	$	1,970	$	357,234
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	156	$	-	$	156
Home Equity	Performing	$	141	$	271	$	—	$	7	$	94	$	875	$	61,829	$	63,217
	Non-performing		—		51		—		19		—		71		—	$	141
	Subtotal	$	141	$	322	$	—	$	26	$	94	$	946	$	61,829	$	63,358
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	10,899	$	16,419	$	8,781	$	5,926	$	4,609	$	9,037	$	1,625	$	57,296
	Non-performing		—		—		8		104		65		160		—	$	337
	Subtotal	$	10,899	$	16,419	$	8,789	$	6,030	$	4,674	$	9,197	$	1,625	$	57,633
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	24	$	12	$	-	$	36
Other Residential	Performing	$	6,090	$	10,078	$	3,471	$	431	$	653	$	1,557	$	302	$	22,582
	Non-performing		—		—		—		—		394		43		—	$	437
	Subtotal	$	6,090	$	10,078	$	3,471	$	431	$	1,047	$	1,600	$	302	$	23,019
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	221,153	$	236,144	$	80,919	$	55,243	$	15,316	$	3,412	$	—	$	612,187
	Non-performing		66		1,306		461		562		185		31		—	$	2,611
	Subtotal	$	221,219	$	237,450	$	81,380	$	55,805	$	15,501	$	3,443	$	—	$	614,798
	Current period gross charge-offs	$	284	$	5,802	$	2,590	$	1,159	$	359	$	161	$	-	$	10,355
Other Consumer	Performing	$	10,564	$	8,336	$	4,462	$	2,483	$	850	$	748	$	5,149	$	32,592
	Non-performing		—		28		160		51		20		6		3	$	268
	Subtotal	$	10,564	$	8,364	$	4,622	$	2,534	$	870	$	754	$	5,152	$	32,860
	Current period gross charge-offs	$	6	$	83	$	49	$	30	$	3	$	5	$	95	$	271
Total	Performing	$	284,730	$	344,246	$	163,564	$	104,841	$	37,689	$	136,933	$	70,875	$	1,142,878
	Non-performing		66		1,409		1,042		958		694		1,852		3	$	6,024
Total other loans		$	284,796	$	345,655	$	164,606	$	105,799	$	38,383	$	138,785	$	70,878	$	1,148,902

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Residential
First Liens	Performing	$	71,607	$	70,197	$	45,080	$	16,968	$	20,258	$	117,488	$	3,245	$	344,843
	Non-performing		106		—		—		141		100		1,782		—	$	2,129
	Subtotal	$	71,713	$	70,197	$	45,080	$	17,109	$	20,358	$	119,270	$	3,245	$	346,972
Home Equity	Performing	$	1,995	$	943	$	8	$	115	$	55	$	820	$	59,875	$	63,811
	Non-performing		—		—		78		—		14		40		176	$	308
	Subtotal	$	1,995	$	943	$	86	$	115	$	69	$	860	$	60,051	$	64,119
Junior Liens	Performing	$	19,074	$	10,485	$	7,507	$	5,830	$	5,366	$	6,195	$	1,928	$	56,385
	Non-performing		—		4		77		90		139		141		—	$	451
	Subtotal	$	19,074	$	10,489	$	7,584	$	5,920	$	5,505	$	6,336	$	1,928	$	56,836
Other Residential	Performing	$	11,542	$	9,923	$	501	$	915	$	498	$	1,582	$	—	$	24,961
	Non-performing		—		—		—		425		35		18		—	$	478
	Subtotal	$	11,542	$	9,923	$	501	$	1,340	$	533	$	1,600	$	—	$	25,439
Consumer
Motor Vehicle	Performing	$	306,565	$	118,362	$	88,144	$	29,004	$	8,652	$	2,230	$	6	$	552,963
	Non-performing		813		739		437		237		66		47		—	$	2,339
	Subtotal	$	307,378	$	119,101	$	88,581	$	29,241	$	8,718	$	2,277	$	6	$	555,302
Other Consumer	Performing	$	13,426	$	7,914	$	4,109	$	1,302	$	429	$	819	$	4,819	$	32,818
	Non-performing		18		247		89		39		12		12		2	$	419
	Subtotal	$	13,444	$	8,161	$	4,198	$	1,341	$	441	$	831	$	4,821	$	33,237
Total	Performing	$	424,209	$	217,824	$	145,349	$	54,134	$	35,258	$	129,134	$	69,873	$	1,075,781
	Non-performing		937		990		681		932		366		2,040		178	$	6,124
Total other loans		$	425,146	$	218,814	$	146,030	$	55,066	$	35,624	$	131,174	$	70,051	$	1,081,905

XML

Securities (Tables)

9 Months Ended

Sep. 30, 2023

Securities

Amortized cost and fair value of investments classified as available-for-sale

The amortized cost and fair value of the Corporation’s investments are shown below. All securities are classified as available-for-sale.

	September 30, 2023
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	104,753	$	4	$	(14,824)	$	89,933
Mortgage Backed Securities - residential		669,417		2		(112,729)		556,690
Mortgage Backed Securities - commercial		7,958		—		(674)		7,284
Collateralized mortgage obligations		214,507		—		(33,551)		180,956
State and municipal obligations		402,144		30		(49,621)		352,553
Municipal taxable		39,875		—		(7,247)		32,628
U.S. Treasury		2,177		—		(26)		2,151
Collateralized debt obligations		—		3,024		—		3,024
TOTAL	$	1,440,831	$	3,060	$	(218,672)	$	1,225,219

	December 31, 2022
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	110,226	$	24	$	(11,777)	$	98,473
Mortgage Backed Securities-residential		711,131		133		(91,016)		620,248
Mortgage Backed Securities-commercial		10,103		—		(426)		9,677
Collateralized mortgage obligations		228,344		60		(24,919)		203,485
State and municipal obligations		396,522		745		(37,114)		360,153
Municipal taxable		39,321		41		(6,847)		32,515
U.S. Treasury		2,979		—		(35)		2,944
Collateralized debt obligations		—		2,986		—		2,986
TOTAL	$	1,498,626	$	3,989	$	(172,134)	$	1,330,481

Schedule of contractual maturities of debt securities

Contractual maturities of debt securities at September 30, 2023 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	9,687	$	9,572
Due after one but within five years		44,613		42,259
Due after five but within ten years		101,584		96,076
Due after ten years		393,065		332,382
		548,949		480,289
Mortgage-backed securities and collateralized mortgage obligations		891,882		744,930
TOTAL	$	1,440,831	$	1,225,219

Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2023 and December 31, 2022.

	September 30, 2023
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	3,684	$	(160)	$	85,832	$	(14,664)	$	89,516	$	(14,824)
Mortgage Backed Securities - Residential		13,339		(452)		543,186		(112,277)		556,525		(112,729)
Mortgage Backed Securities - Commercial		—		—		7,284		(674)		7,284		(674)
Collateralized mortgage obligations		15,852		(613)		165,104		(32,938)		180,956		(33,551)
State and municipal obligations		145,686		(4,162)		197,579		(45,459)		343,265		(49,621)
Municipal taxable		1,771		(44)		30,357		(7,203)		32,128		(7,247)
U.S. Treasury		—		—		2,151		(26)		2,151		(26)
Total temporarily impaired securities	$	180,332	$	(5,431)	$	1,031,493	$	(213,241)	$	1,211,825	$	(218,672)

	December 31, 2022
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	58,462	$	(4,034)	$	38,959	$	(7,743)	$	97,421	$	(11,777)
Mortgage Backed Securities - Residential		234,488		(19,757)		379,520		(71,259)		614,008		(91,016)
Mortgage Backed Securities - Commercial		9,677		(426)		—		—		9,677		(426)
Collateralized mortgage obligations		135,135		(11,331)		63,792		(13,588)		198,927		(24,919)
State and municipal obligations		233,439		(24,291)		41,510		(12,823)		274,949		(37,114)
Municipal taxable		18,637		(3,706)		12,837		(3,141)		31,474		(6,847)
U.S. Treasury		2,944		(35)		—		—		2,944		(35)
Total temporarily impaired securities	$	692,782	$	(63,580)	$	536,618	$	(108,554)	$	1,229,400	$	(172,134)

Rollforward of the credit losses recognized in earnings

The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollar amounts in thousands)	2023		2022		2023		2022
Beginning balance	$	2,974	$	2,974	$	2,974	$	2,974
Reductions for securities called during the period		—		—		—		—
Ending balance	$	2,974	$	2,974	$	2,974	$	2,974

XML

Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value

Schedule of assets and liabilities measured at fair value

	September 30, 2023
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	89,933	$	—	$	89,933
Mortgage Backed Securities-residential		—		556,690		—		556,690
Mortgage Backed Securities-commercial		—		7,284		—		7,284
Collateralized mortgage obligations		—		180,956		—		180,956
State and municipal		—		351,373		1,180		352,553
Municipal taxable		—		32,628		—		32,628
U.S. Treasury		—		2,151		—		2,151
Collateralized debt obligations		—		—		3,024		3,024
TOTAL	$	—	$	1,221,015	$	4,204	$	1,225,219
Derivative Assets				3,608
Derivative Liabilities				(3,608)

	December 31, 2022
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	98,473	$	—	$	98,473
Mortgage Backed Securities-residential		—		620,248		—		620,248
Mortgage Backed Securities-commercial		—		9,677		—		9,677
Collateralized mortgage obligations		—		203,485		—		203,485
State and municipal		—		358,608		1,545		360,153
Municipal taxable		—		32,515		—		32,515
U.S. Treasury		—		2,944		—		2,944
Collateralized debt obligations		—		—		2,986		2,986
TOTAL	$	—	$	1,325,950	$	4,531	$	1,330,481
Derivative Assets				2,838
Derivative Liabilities				(2,838)

Schedule of fair value measurements using significant unobservable inputs

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, July 1	$	1,180	$	2,941	$	4,121
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		83		83
Transfers		—		—		—
Settlements		—		—		—
Ending balance, September 30	$	1,180	$	3,024	$	4,204

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,545	$	2,986	$	4,531
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		38		38
Transfers		—		—		—
Settlements		(365)		—		(365)
Ending balance, September 30	$	1,180	$	3,024	$	4,204

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2022
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,895	$	3,359	$	5,254
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		(373)		(373)
Purchases		—		—		—
Settlements		(350)		—		(350)
Ending balance, December 31	$	1,545	$	2,986	$	4,531

Quantitative information about recurring and non-recurring Level 3

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2023.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,180	Discounted cash flow	Discount rate	4.04%-4.44	%
Collateralized debt obligations	$	3,024	Discounted cash flow	Discount rate	7.22	%
Collateral dependent loans	$	1,812	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2022.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,545	Discounted cash flow	Discount rate	3.73%-4.44	%
Collateralized debt obligations	$	2,986	Discounted cash flow	Discount rate	5.34	%
Collateral dependent loans		4,477	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

Schedule of carrying amount and estimated fair value of financial instruments

	September 30, 2023
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	74,668	$	25,257	$	49,411	$	—	$	74,668
Federal funds sold		688		—		688		—		688
Securities available-for-sale		1,225,219		—		1,221,015		4,204		1,225,219
Restricted stock		15,398		n/a		n/a		n/a		n/a
Loans, net		3,078,592		—		—		2,901,310		2,901,310
Accrued interest receivable		22,546		—		6,837		15,709		22,546
Deposits		(4,040,995)		—		(4,035,772)		—		(4,035,772)
Short-term borrowings		(132,734)		—		(132,734)		—		(132,734)
Other borrowings		(84,578)		—		(84,614)		—		(84,614)
Accrued interest payable		(1,929)		—		(1,929)		—		(1,929)

	December 31, 2022
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	222,517	$	29,400	$	193,117	$	—	$	222,517
Federal funds sold		9,374		—		9,374		—		9,374
Securities available-for-sale		1,330,481		—		1,325,950		4,531		1,330,481
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,027,659		—		—		2,930,680		2,930,680
Accrued interest receivable		21,288		—		5,529		15,759		21,288
Deposits		(4,368,871)		—		(4,369,402)		—		(4,369,402)
Short-term borrowings		(70,875)		—		(70,875)		—		(70,875)
Other borrowings		(9,589)		—		(8,788)		—		(8,788)
Accrued interest payable		(483)		—		(483)		—		(483)

XML

Borrowings (Tables)

9 Months Ended

Sep. 30, 2023

Borrowings

Schedule of short-term borrowings

Short-term borrowings:

Period–end short-term borrowings were comprised of the following:

(Dollar amounts in thousands)	September 30, 2023		December 31, 2022
Federal Funds Purchased	$	63,425	$	3,000
Repurchase Agreements		69,309		67,875
	$	132,734	$	70,875

Schedule of collateral pledged to repurchase agreements by remaining maturity

Collateral pledged to repurchase agreements by remaining maturity are as follows:

	September 30, 2023
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	63,008	$	300	$	1,450	$	4,551	$	69,309

	December 31, 2022
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	63,335	$	—	$	4,175	$	365	$	67,875

Schedule of other borrowings

(Dollar amounts in thousands)	September 30, 2023		December 31, 2022
FHLB advances	$	84,578	$	9,589
TOTAL	$	84,578	$	9,589

Aggregate Minimum Annual Retirements

2024	$	78,618
2025		1,007
2026		4,953
2027		—
2028		—
Thereafter		—
	$	84,578

XML

Components of Net Periodic Benefit Cost (Tables)

9 Months Ended

Sep. 30, 2023

Components of Net Periodic Benefit Cost

Schedule of Net Periodic Benefit Costs

	Three Months Ended September 30,								Nine Months Ended September 30,
					Post-Retirement								Post-Retirement
	Pension Benefits				Health Benefits				Pension Benefits				Health Benefits
(Dollar amounts in thousands)	2023		2022		2023		2022		2023		2022		2023		2022
Service cost	$	157	$	297	$	5	$	8	$	471	$	892	$	15	$	25
Interest cost		956		707		38		28		2,868		2,120		115		83
Expected return on plan assets		(970)		(1,227)		—		—		(2,909)		(3,682)		—		—
Net amortization of prior service cost		—		—		—		—		—		—		—		—
Net amortization of net (gain) loss		188		315		(13)		—		564		944		(40)		—
Net Periodic Benefit Cost	$	331	$	92	$	30	$	36	$	994	$	274	$	90	$	108

XML

Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contracts with Customers

Schedule of Non-Interest Income

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollar amounts in thousands)	2023		2022		2023		2022
Non-interest income
Service charges on deposits and debit card fee income	$	7,099	$	6,965	$	20,971	$	20,698
Asset management fees		1,140		1,015		3,642		3,687
Interchange income		—		149		47		418
Net gains on sales of loans (a)		321		440		811		1,705
Loan servicing fees (a)		447		457		997		1,184
Net gains/(losses) on sales of securities (a)		—		—		—		5
Other service charges and fees (a)		213		160		613		488
Other (b)		2,407		2,954		4,374		7,963	(c)
Total non-interest income	$	11,627	$	12,140	$	31,455	$	36,148

(a)Not within the scope of ASC 606.

(b)The Other category includes gains/(losses) on the sale of OREO for the three months ended September 30, 2023 and September 30, 2022, totaling zero, and for the nine months ended for the same periods, totaling $(31) thousand and $85 thousand, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.

(c)Legal settlement totaling $4 million received in first quarter 2022.

XML

Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income

Schedule of Accumulated Other Comprehensive Income

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, July 1,	$	(130,466)	$	(10,784)	$	(141,250)
Change in other comprehensive income (loss) before reclassification		(34,934)		—		(34,934)
Amounts reclassified from accumulated other comprehensive income		—		146		146
Net current period other comprehensive income (loss)		(34,934)		146		(34,788)
Ending balance, September 30,	$	(165,400)	$	(10,638)	$	(176,038)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(128,896)	$	(11,078)	$	(139,974)
Change in other comprehensive income (loss) before reclassification		(36,504)		—		(36,504)
Amounts reclassified from accumulated other comprehensive income		—		440		440
Net current period other comprehensive income (loss)		(36,504)		440		(36,064)
Ending balance, September 30,	$	(165,400)	$	(10,638)	$	(176,038)

	Unrealized
	gains and
	(Losses) on available-		2022
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, July 1,	$	(109,159)	$	(17,471)	$	(126,630)
Change in other comprehensive income (loss) before reclassification		(41,060)		—		(41,060)
Amounts reclassified from accumulated other comprehensive income		—		315		315
Net current period other comprehensive income (loss)		(41,060)		315		(40,745)
Ending balance, September 30,	$	(150,219)	$	(17,156)	$	(167,375)

	Unrealized
	gains and
	(Losses) on available-		2022
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	15,674	$	(18,100)	$	(2,426)
Change in other comprehensive income (loss) before reclassification		(165,889)		—		(165,889)
Amounts reclassified from accumulated other comprehensive income		(4)		944		940
Net current period other comprehensive income (loss)		(165,893)		944		(164,949)
Ending balance, September 30,	$	(150,219)	$	(17,156)	$	(167,375)

Schedule Of Accumulated Other Comprehensive Income Loss Other Than Temporary Impairment

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	7/1/2023		Change		9/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(132,671)	$	(34,997)	$	(167,668)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,205		63		2,268
Total unrealized loss on securities available-for-sale	$	(130,466)	$	(34,934)	$	(165,400)
Unrealized gain (loss) on retirement plans		(10,784)		146		(10,638)
TOTAL	$	(141,250)	$	(34,788)	$	(176,038)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2023		Change		9/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,135)	$	(36,533)	$	(167,668)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,239		29		2,268
Total unrealized gain (loss) on securities available-for-sale	$	(128,896)	$	(36,504)	$	(165,400)
Unrealized gain (loss) on retirement plans		(11,078)		440		(10,638)
TOTAL	$	(139,974)	$	(36,064)	$	(176,038)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	7/1/2022		Change		9/30/2022
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(111,474)	$	(41,078)	$	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,315		18		2,333
Total unrealized gain (loss) on securities available-for-sale	$	(109,159)	$	(41,060)	$	(150,219)
Unrealized loss on retirement plans		(17,471)		315		(17,156)
TOTAL	$	(126,630)	$	(40,745)	$	(167,375)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2022		Change		9/30/2022
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	13,155	$	(165,707)	$	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,519		(186)		2,333
Total unrealized income (loss) on securities available-for-sale	$	15,674	$	(165,893)	$	(150,219)
Unrealized gain (loss) on retirement plans		(18,100)		944		(17,156)
TOTAL	$	(2,426)	$	(164,949)	$	(167,375)

Accumulated Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2022		Change		9/30/2022
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	13,155	$	(165,707)	$	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,519		(186)		2,333
Total unrealized income (loss) on securities available-for-sale	$	15,674	$	(165,893)	$	(150,219)
Unrealized gain (loss) on retirement plans		(18,100)		944		(17,156)
TOTAL	$	(2,426)	$	(164,949)	$	(167,375)

XML

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases

Schedule of lease cost

	Nine Months Ended
(Dollar amounts in thousands)	September 30, 2023
Operating lease cost	$	766
Short-term lease cost		100
Variable lease cost		11
Total lease cost	$	877
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities		730
Right-of-use assets obtained in exchange for new operating lease liabilities		378

Schedule of Future minimum payments for operating leases

(Dollar amounts in thousands)	September 30, 2023
Twelve Months Ended September 30,
2024	$	904
2025		882
2026		812
2027		771
2028		708
Thereafter		2,354
Total Future Minimum Lease Payments		6,431
Amounts Representing Interest		(774)
Present Value of Net Future Minimum Lease Payments	$	5,657

XML

Significant Accounting Policies (Details) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2023 shares	Jun. 30, 2022 shares	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)
Significant Accounting Policies
Number of reportable segments | segment			1
Vesting period			3 years
Number of shares awarded | shares	22,228	18,679
Grant date value | $			$ 1,000	$ 847
Year one
Significant Accounting Policies
Vesting percentage			33.00%
Year two
Significant Accounting Policies
Vesting percentage			33.00%
Year three
Significant Accounting Policies
Vesting percentage			34.00%

XML

Allowance for Credit Losses - Activity in allowance for credit losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 39,907	$ 41,468	$ 39,779	$ 48,305
Provision for credit losses	1,200	1,050	4,800	(4,750)
Loans charged -off	(3,601)	(5,653)	(11,520)	(11,318)
Recoveries	1,528	2,630	5,975	7,258
Ending Balance	39,034	39,495	39,034	39,495
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	12,450	16,469	12,949	18,883
Provision for credit losses	(199)	(1,403)	(630)	(3,835)
Loans charged -off	(187)	(2,406)	(702)	(3,659)
Recoveries	177	634	624	1,905
Ending Balance	12,241	13,294	12,241	13,294
Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	15,268	14,168	14,568	18,316
Provision for credit losses	(747)	297	(81)	(3,952)
Loans charged -off	(50)	(57)	(192)	(579)
Recoveries	67	55	243	678
Ending Balance	14,538	14,463	14,538	14,463
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	11,653	10,584	12,104	10,721
Provision for credit losses	2,303	2,199	5,290	3,218
Loans charged -off	(3,364)	(3,190)	(10,626)	(7,080)
Recoveries	1,284	1,941	5,108	4,675
Ending Balance	11,876	11,534	11,876	11,534
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	536	247	158	385
Provision for credit losses	(157)	(43)	221	(181)
Ending Balance	$ 379	$ 204	$ 379	$ 204

XML

Allowance for Credit Losses - Recorded Investments in Nonperforming Loans (Details) - Nonperforming Loans - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	$ 1,405	$ 1,157
Non-accrual	11,214	11,554
Nonaccrual With No Allowance For Credit Loss	5,329	2,461
Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	20	114
Non-accrual	1,566	2,137
Nonaccrual With No Allowance For Credit Loss	900	254
Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	1,677	461
Nonaccrual With No Allowance For Credit Loss	1,662
Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	1,293	2,064
Nonaccrual With No Allowance For Credit Loss	1,291	2,052
Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	1,115	186
Nonaccrual With No Allowance For Credit Loss	1,103	155
All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	21	26
First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	1,177	666
Non-accrual	933	1,380
Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	71	180
Non-accrual	70	133
Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	137	197
Non-accrual	200	256
Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	548	1,468
Nonaccrual With No Allowance For Credit Loss	373
All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	436	478
Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	3,092	2,549
All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	$ 263	$ 416

XML

Allowance for Credit Losses - Amortized cost basis of collateral dependent loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	$ 10,255	$ 13,920
Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	1,054	156
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	1,960,829	1,978,358
Commercial | Commercial & Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	641,111	675,323
Commercial | Commercial & Industrial | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	3,500	4,613
Commercial | Commercial & Industrial | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable		1
Commercial | Farmland
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	131,169	125,375
Commercial | Farmland | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	2,094	3,289
Commercial | Non Farm, Non Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	418,132	386,542
Commercial | Non Farm, Non Residential | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	4,239	5,123
Commercial | Agriculture
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	117,085	135,500
Commercial | Agriculture | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	49
Commercial | Agriculture | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	1,054	155
Commercial | All Other Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	467,507	475,520
Commercial | Multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	185,825	180,098
Residential | First Liens
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	357,234	346,972
Residential | Home Equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	63,358	64,119
Residential | Junior Liens
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	57,633	56,836
Residential | Multifamily | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	373	895
Residential | All Other Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	23,019	25,439
Consumer | Motor Vehicle
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	614,798	555,302
Consumer | All Other Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	$ 32,860	$ 33,237

XML

Allowance for Credit Losses - Aging of the Recorded Investment in Loans by Past Due Category and Class of Loan (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	$ 3,125,718	$ 3,075,228
Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	1,960,829	1,978,358
Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	641,111	675,323
Financing Receivable Recorded Investment	643,345	677,522
Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	131,169	125,375
Financing Receivable Recorded Investment	133,893	127,610
Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	418,132	386,542
Financing Receivable Recorded Investment	419,239	387,416
Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	117,085	135,500
Financing Receivable Recorded Investment	119,667	137,682
All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	467,507	475,520
Financing Receivable Recorded Investment	469,824	478,442
First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	357,234	346,972
Financing Receivable Recorded Investment	358,345	347,916
Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	63,358	64,119
Financing Receivable Recorded Investment	63,566	64,340
Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	57,633	56,836
Financing Receivable Recorded Investment	57,779	56,976
Multifamily | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	185,825	180,098
Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	186,551	180,705
All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	23,019	25,439
Financing Receivable Recorded Investment	23,100	25,523
Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	614,798	555,302
Financing Receivable Recorded Investment	617,393	557,717
All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	32,860	33,237
Financing Receivable Recorded Investment	33,016	33,379
Financial Asset, 30 to 59 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	12,638	24,387
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	520	1,698
Financial Asset, 30 to 59 Days Past Due [Member] | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	54	112
Financial Asset, 30 to 59 Days Past Due [Member] | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	46	274
Financial Asset, 30 to 59 Days Past Due [Member] | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	117
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	13	333
Financial Asset, 30 to 59 Days Past Due [Member] | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	902	4,528
Financial Asset, 30 to 59 Days Past Due [Member] | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	594	305
Financial Asset, 30 to 59 Days Past Due [Member] | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	374	213
Financial Asset, 30 to 59 Days Past Due [Member] | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	113	317
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment		1,115
Financial Asset, 30 to 59 Days Past Due [Member] | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	9,549	15,151
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	356	341
Financial Asset, 60 to 89 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	4,304	5,629
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	370	529
Financial Asset, 60 to 89 Days Past Due [Member] | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment		34
Financial Asset, 60 to 89 Days Past Due [Member] | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	217	1,231
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,083
Financial Asset, 60 to 89 Days Past Due [Member] | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	739	1,203
Financial Asset, 60 to 89 Days Past Due [Member] | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	33	144
Financial Asset, 60 to 89 Days Past Due [Member] | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	119	69
Financial Asset, 60 to 89 Days Past Due [Member] | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	30	83
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1	350
Financial Asset, 60 to 89 Days Past Due [Member] | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,578	1,930
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	134	56
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	7,205	3,397
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,316	726
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,662
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,054
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment		14
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,405	1,054
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	110	276
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	267	327
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	373
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,002	985
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	16	15
Financial Asset, Past Due
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	24,147	33,413
Financial Asset, Past Due | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	2,206	2,953
Financial Asset, Past Due | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,716	112
Financial Asset, Past Due | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	46	308
Financial Asset, Past Due | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,388	1,231
Financial Asset, Past Due | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,096	347
Financial Asset, Past Due | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	3,046	6,785
Financial Asset, Past Due | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	737	725
Financial Asset, Past Due | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	760	609
Financial Asset, Past Due | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	516	400
Financial Asset, Past Due | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1	1,465
Financial Asset, Past Due | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	12,129	18,066
Financial Asset, Past Due | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	506	412
Financial Asset, Not Past Due
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	3,101,571	3,041,815
Financial Asset, Not Past Due | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	641,139	674,569
Financial Asset, Not Past Due | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	132,177	127,498
Financial Asset, Not Past Due | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	419,193	387,108
Financial Asset, Not Past Due | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	118,279	136,451
Financial Asset, Not Past Due | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	468,728	478,095
Financial Asset, Not Past Due | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	355,299	341,131
Financial Asset, Not Past Due | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	62,829	63,615
Financial Asset, Not Past Due | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	57,019	56,367
Financial Asset, Not Past Due | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	186,035	180,305
Financial Asset, Not Past Due | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	23,099	24,058
Financial Asset, Not Past Due | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	605,264	539,651
Financial Asset, Not Past Due | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	$ 32,510	$ 32,967

XML

Allowance for Credit Losses - Loans and Leases Modified (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Principal Forgiveness [Member]
Loans and leases that were modified
$ Amount	$ 6
Extended Maturity [Member]
Loans and leases that were modified
$ Amount	104
Contractual Interest Rate Reduction [Member]
Loans and leases that were modified
$ Amount	139
Extended Maturity and Principal Forgiveness [Member]
Loans and leases that were modified
$ Amount	41
Extended Maturity and Interest Rate Reduction [Member]
Loans and leases that were modified
$ Amount	$ 67
Residential | Home Equity
Loans and leases that were modified
Total Class of Financing Receivable	0.00%
Residential | Home Equity | Contractual Interest Rate Reduction [Member]
Loans and leases that were modified
$ Amount	$ 139
Residential | Home Equity | Extended Maturity and Interest Rate Reduction [Member]
Loans and leases that were modified
$ Amount	$ 26
Consumer | Motor Vehicle
Loans and leases that were modified
Total Class of Financing Receivable	0.00%
Consumer | Motor Vehicle | Principal Forgiveness [Member]
Loans and leases that were modified
$ Amount	$ 6
Consumer | Motor Vehicle | Extended Maturity [Member]
Loans and leases that were modified
$ Amount	104
Consumer | Motor Vehicle | Extended Maturity and Principal Forgiveness [Member]
Loans and leases that were modified
$ Amount	41
Consumer | Motor Vehicle | Extended Maturity and Interest Rate Reduction [Member]
Loans and leases that were modified
$ Amount	$ 41

XML

Allowance for Credit Losses - Effect of loan and leases modifications (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Effect of loan and lease modifications
Principal Forgiveness	$ 13
Weighted-Average Interest Rate Reduction	2.05%
Weighted-Average Term Extension	23 months
Residential | First Liens
Effect of loan and lease modifications
Weighted-Average Interest Rate Reduction	2.12%
Weighted-Average Term Extension	24 months
Consumer | Motor Vehicle
Effect of loan and lease modifications
Principal Forgiveness	$ 13
Weighted-Average Interest Rate Reduction	1.78%
Weighted-Average Term Extension	23 months

XML

Allowance for Credit Losses - Recorded Investment of Commercial Loan Portfolio by Risk Category (Details ) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Analysis of risk category of loans by class of loans
Current period gross charge offs, Total	$ 3,601	$ 5,653	$ 11,520	$ 11,318
Commercial
Analysis of risk category of loans by class of loans
Current year	204,373		204,373		$ 499,652
Prior year	460,292		460,292		374,316
Two years before current year	362,895		362,895		253,771
Three years before current year	211,176		211,176		124,874
Four years before current year	101,221		101,221		111,374
Prior	455,351		455,351		438,014
Revolving Loans	165,521		165,521		176,357
Total loans	1,960,829		1,960,829		1,978,358
Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	70,326		70,326		173,014
Prior year	140,600		140,600		139,881
Two years before current year	127,779		127,779		62,947
Three years before current year	47,374		47,374		58,203
Four years before current year	46,370		46,370		31,893
Prior	112,983		112,983		107,719
Revolving Loans	95,679		95,679		101,666
Total loans	641,111		641,111		675,323
Current period gross charge offs, 2023			8
Current period gross charge offs, 2022			20
Current period gross charge offs, 2021			40
Current period gross charge offs, 2020			78
Current period gross charge offs, Prior			2
Current period gross charge offs, Total			148
Farmland | Commercial
Analysis of risk category of loans by class of loans
Current year	17,799		17,799		16,261
Prior year	16,393		16,393		22,530
Two years before current year	21,274		21,274		10,864
Three years before current year	8,861		8,861		10,928
Four years before current year	9,761		9,761		10,689
Prior	56,807		56,807		53,763
Revolving Loans	274		274		340
Total loans	131,169		131,169		125,375
Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Current year	53,322		53,322		102,728
Prior year	121,082		121,082		76,046
Two years before current year	70,985		70,985		33,910
Three years before current year	26,530		26,530		21,030
Four years before current year	22,978		22,978		31,438
Prior	118,954		118,954		118,415
Revolving Loans	4,281		4,281		2,975
Total loans	418,132		418,132		386,542
Agriculture | Commercial
Analysis of risk category of loans by class of loans
Current year	8,529		8,529		13,245
Prior year	11,666		11,666		9,067
Two years before current year	7,484		7,484		8,093
Three years before current year	6,497		6,497		8,710
Four years before current year	7,659		7,659		3,213
Prior	19,671		19,671		27,494
Revolving Loans	55,579		55,579		65,678
Total loans	117,085		117,085		135,500
All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Current year	26,467		26,467		143,980
Prior year	107,519		107,519		91,720
Two years before current year	101,796		101,796		90,845
Three years before current year	98,683		98,683		19,269
Four years before current year	7,994		7,994		29,172
Prior	115,569		115,569		94,932
Revolving Loans	9,479		9,479		5,602
Total loans	467,507		467,507		475,520
Current period gross charge offs, 2023			534
Current period gross charge offs, 2019			20
Current period gross charge offs, Total			554
Multifamily | Commercial
Analysis of risk category of loans by class of loans
Current year	27,930		27,930		50,424
Prior year	63,032		63,032		35,072
Two years before current year	33,577		33,577		47,112
Three years before current year	23,231		23,231		6,734
Four years before current year	6,459		6,459		4,969
Prior	31,367		31,367		35,691
Revolving Loans	229		229		96
Total loans	185,825		185,825		180,098
Pass | Commercial
Analysis of risk category of loans by class of loans
Current year	200,886		200,886		489,819
Prior year	452,427		452,427		359,611
Two years before current year	347,312		347,312		244,888
Three years before current year	202,240		202,240		117,657
Four years before current year	96,563		96,563		104,403
Prior	417,153		417,153		396,572
Revolving Loans	151,592		151,592		163,520
Total loans	1,868,173		1,868,173		1,876,470
Pass | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	67,442		67,442		163,479
Prior year	134,073		134,073		128,012
Two years before current year	114,359		114,359		56,830
Three years before current year	42,545		42,545		54,208
Four years before current year	44,822		44,822		26,514
Prior	103,842		103,842		99,522
Revolving Loans	84,842		84,842		92,110
Total loans	591,925		591,925		620,675
Pass | Farmland | Commercial
Analysis of risk category of loans by class of loans
Current year	17,799		17,799		16,261
Prior year	16,393		16,393		22,530
Two years before current year	21,274		21,274		9,244
Three years before current year	8,364		8,364		9,438
Four years before current year	8,928		8,928		10,352
Prior	54,026		54,026		48,847
Revolving Loans	274		274		340
Total loans	127,058		127,058		117,012
Pass | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Current year	52,735		52,735		102,629
Prior year	120,994		120,994		75,011
Two years before current year	69,980		69,980		33,214
Three years before current year	25,847		25,847		19,596
Four years before current year	21,608		21,608		31,438
Prior	113,887		113,887		111,586
Revolving Loans	4,281		4,281		2,975
Total loans	409,332		409,332		376,449
Pass | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Current year	8,513		8,513		13,085
Prior year	11,470		11,470		9,028
Two years before current year	7,451		7,451		8,015
Three years before current year	6,447		6,447		8,422
Four years before current year	7,578		7,578		1,987
Prior	17,783		17,783		26,729
Revolving Loans	52,605		52,605		62,397
Total loans	111,847		111,847		129,663
Pass | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Current year	26,467		26,467		143,941
Prior year	106,465		106,465		91,615
Two years before current year	101,778		101,778		90,845
Three years before current year	96,167		96,167		19,259
Four years before current year	7,168		7,168		29,143
Prior	103,476		103,476		82,535
Revolving Loans	9,479		9,479		5,602
Total loans	451,000		451,000		462,940
Pass | Multifamily | Commercial
Analysis of risk category of loans by class of loans
Current year	27,930		27,930		50,424
Prior year	63,032		63,032		33,415
Two years before current year	32,470		32,470		46,740
Three years before current year	22,870		22,870		6,734
Four years before current year	6,459		6,459		4,969
Prior	24,139		24,139		27,353
Revolving Loans	111		111		96
Total loans	177,011		177,011		169,731
Special Mention | Commercial
Analysis of risk category of loans by class of loans
Current year	57		57		2,282
Prior year	1,339		1,339		11,306
Two years before current year	11,142		11,142		4,980
Three years before current year	6,098		6,098		4,388
Four years before current year	1,185		1,185		2,061
Prior	20,950		20,950		24,472
Revolving Loans	5,917		5,917		2,972
Total loans	46,688		46,688		52,461
Special Mention | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	57		57		2,071
Prior year	68		68		9,738
Two years before current year	10,137		10,137		3,434
Three years before current year	3,213		3,213		2,572
Four years before current year	328		328		2,061
Prior	1,001		1,001		1,848
Revolving Loans	2,825		2,825		453
Total loans	17,629		17,629		22,177
Special Mention | Farmland | Commercial
Analysis of risk category of loans by class of loans
Two years before current year					1,164
Three years before current year					882
Prior	1,118		1,118		2,930
Total loans	1,118		1,118		4,976
Special Mention | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Current year					99
Prior year	88		88		1,035
Two years before current year	1,005		1,005
Three years before current year					921
Four years before current year	854		854
Prior					279
Total loans	1,947		1,947		2,334
Special Mention | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Current year					89
Prior year	142		142
Two years before current year					10
Three years before current year	8		8		3
Four years before current year	3		3
Prior	609		609		709
Revolving Loans	2,974		2,974		2,519
Total loans	3,736		3,736		3,330
Special Mention | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Current year					23
Prior year	1,041		1,041
Three years before current year	2,516		2,516		10
Prior	11,623		11,623		11,911
Total loans	15,180		15,180		11,944
Special Mention | Multifamily | Commercial
Analysis of risk category of loans by class of loans
Prior year					533
Two years before current year					372
Three years before current year	361		361
Prior	6,599		6,599		6,795
Revolving Loans	118		118
Total loans	7,078		7,078		7,700
Substandard | Commercial
Analysis of risk category of loans by class of loans
Current year	604		604		423
Prior year	5,008		5,008		746
Two years before current year	2,370		2,370		2,317
Three years before current year	1,565		1,565		2,299
Four years before current year	3,244		3,244		4,707
Prior	16,322		16,322		15,856
Revolving Loans	8,012		8,012		9,865
Total loans	37,125		37,125		36,213
Substandard | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	17		17		423
Prior year	5,008		5,008		723
Two years before current year	2,352		2,352		1,861
Three years before current year	1,068		1,068		954
Four years before current year	1,019		1,019		3,169
Prior	8,026		8,026		6,264
Revolving Loans	8,012		8,012		9,103
Total loans	25,502		25,502		22,497
Substandard | Farmland | Commercial
Analysis of risk category of loans by class of loans
Two years before current year					456
Three years before current year	497		497		608
Four years before current year	833		833		337
Prior	1,646		1,646		1,969
Total loans	2,976		2,976		3,370
Substandard | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Current year	587		587
Three years before current year					513
Four years before current year	516		516
Prior	4,993		4,993		6,281
Total loans	6,096		6,096		6,794
Substandard | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Three years before current year					224
Four years before current year	50		50		1,201
Prior	1,279		1,279		56
Revolving Loans					762
Total loans	1,329		1,329		2,243
Substandard | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Prior year					23
Two years before current year	18		18
Four years before current year	826		826
Prior	5		5		6
Total loans	849		849		29
Substandard | Multifamily | Commercial
Analysis of risk category of loans by class of loans
Prior	373		373		1,280
Total loans	373		373		1,280
Not Rated | Commercial
Analysis of risk category of loans by class of loans
Current year	2,826		2,826		7,128
Prior year	1,518		1,518		2,653
Two years before current year	2,071		2,071		1,586
Three years before current year	1,273		1,273		530
Four years before current year	229		229		203
Prior	926		926		1,114
Total loans	8,843		8,843		13,214
Not Rated | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	2,810		2,810		7,041
Prior year	1,451		1,451		1,408
Two years before current year	931		931		822
Three years before current year	548		548		469
Four years before current year	201		201		149
Prior	114		114		85
Total loans	6,055		6,055		9,974
Not Rated | Farmland | Commercial
Analysis of risk category of loans by class of loans
Prior	17		17		17
Total loans	17		17		17
Not Rated | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Two years before current year					696
Three years before current year	683		683
Prior	74		74		269
Total loans	757		757		965
Not Rated | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Current year	16		16		71
Prior year	54		54		39
Two years before current year	33		33		68
Three years before current year	42		42		61
Four years before current year	28		28		25
Total loans	173		173		264
Not Rated | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Current year					16
Prior year	13		13		82
Four years before current year					29
Prior	465		465		480
Total loans	478		478		607
Not Rated | Multifamily | Commercial
Analysis of risk category of loans by class of loans
Prior year					1,124
Two years before current year	1,107		1,107
Prior	256		256		263
Total loans	$ 1,363		$ 1,363		$ 1,387

XML

Allowance for Credit Losses - Credit risk profile of loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Nonperforming loans past due			90 days
Current period gross charge offs, Total	$ 3,601	$ 5,653	$ 11,520	$ 11,318
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	284,730		284,730		$ 424,209
Prior year	344,246		344,246		217,824
Two years before current year	163,564		163,564		145,349
Three years before current year	104,841		104,841		54,134
Four years before current year	37,689		37,689		35,258
Prior	136,933		136,933		129,134
Revolving Loans	70,875		70,875		69,873
Total loans	1,142,878		1,142,878		1,075,781
Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	66		66		937
Prior year	1,409		1,409		990
Two years before current year	1,042		1,042		681
Three years before current year	958		958		932
Four years before current year	694		694		366
Prior	1,852		1,852		2,040
Revolving Loans	3		3		178
Total loans	6,024		6,024		6,124
Total other loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	284,796		284,796		425,146
Prior year	345,655		345,655		218,814
Two years before current year	164,606		164,606		146,030
Three years before current year	105,799		105,799		55,066
Four years before current year	38,383		38,383		35,624
Prior	138,785		138,785		131,174
Revolving Loans	70,878		70,878		70,051
Total loans	1,148,902		1,148,902		1,081,905
Residential | First Liens
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	35,883		35,883		71,713
Prior year	73,022		73,022		70,197
Two years before current year	66,344		66,344		45,080
Three years before current year	40,973		40,973		17,109
Four years before current year	16,197		16,197		20,358
Prior	122,845		122,845		119,270
Revolving Loans	1,970		1,970		3,245
Total loans	357,234		357,234		346,972
Current period gross charge offs, Prior			156
Current period gross charge offs, Total			156
Residential | First Liens | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	35,883		35,883		71,607
Prior year	72,998		72,998		70,197
Two years before current year	65,931		65,931		45,080
Three years before current year	40,751		40,751		16,968
Four years before current year	16,167		16,167		20,258
Prior	121,304		121,304		117,488
Revolving Loans	1,970		1,970		3,245
Total loans	355,004		355,004		344,843
Residential | First Liens | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year					106
Prior year	24		24
Two years before current year	413		413
Three years before current year	222		222		141
Four years before current year	30		30		100
Prior	1,541		1,541		1,782
Total loans	2,230		2,230		2,129
Residential | Home Equity
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	141		141		1,995
Prior year	322		322		943
Two years before current year					86
Three years before current year	26		26		115
Four years before current year	94		94		69
Prior	946		946		860
Revolving Loans	61,829		61,829		60,051
Total loans	63,358		63,358		64,119
Residential | Home Equity | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	141		141		1,995
Prior year	271		271		943
Two years before current year					8
Three years before current year	7		7		115
Four years before current year	94		94		55
Prior	875		875		820
Revolving Loans	61,829		61,829		59,875
Total loans	63,217		63,217		63,811
Residential | Home Equity | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Prior year	51		51
Two years before current year					78
Three years before current year	19		19
Four years before current year					14
Prior	71		71		40
Revolving Loans					176
Total loans	141		141		308
Residential | Junior Liens
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	10,899		10,899		19,074
Prior year	16,419		16,419		10,489
Two years before current year	8,789		8,789		7,584
Three years before current year	6,030		6,030		5,920
Four years before current year	4,674		4,674		5,505
Prior	9,197		9,197		6,336
Revolving Loans	1,625		1,625		1,928
Total loans	57,633		57,633		56,836
Current period gross charge offs, 2019			24
Current period gross charge offs, Prior			12
Current period gross charge offs, Total			36
Residential | Junior Liens | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	10,899		10,899		19,074
Prior year	16,419		16,419		10,485
Two years before current year	8,781		8,781		7,507
Three years before current year	5,926		5,926		5,830
Four years before current year	4,609		4,609		5,366
Prior	9,037		9,037		6,195
Revolving Loans	1,625		1,625		1,928
Total loans	57,296		57,296		56,385
Residential | Junior Liens | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Prior year					4
Two years before current year	8		8		77
Three years before current year	104		104		90
Four years before current year	65		65		139
Prior	160		160		141
Total loans	337		337		451
Residential | All Other Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	6,090		6,090		11,542
Prior year	10,078		10,078		9,923
Two years before current year	3,471		3,471		501
Three years before current year	431		431		1,340
Four years before current year	1,047		1,047		533
Prior	1,600		1,600		1,600
Revolving Loans	302		302
Total loans	23,019		23,019		25,439
Residential | All Other Residential | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	6,090		6,090		11,542
Prior year	10,078		10,078		9,923
Two years before current year	3,471		3,471		501
Three years before current year	431		431		915
Four years before current year	653		653		498
Prior	1,557		1,557		1,582
Revolving Loans	302		302
Total loans	22,582		22,582		24,961
Residential | All Other Residential | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Three years before current year					425
Four years before current year	394		394		35
Prior	43		43		18
Total loans	437		437		478
Consumer | Motor Vehicle
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	221,219		221,219		307,378
Prior year	237,450		237,450		119,101
Two years before current year	81,380		81,380		88,581
Three years before current year	55,805		55,805		29,241
Four years before current year	15,501		15,501		8,718
Prior	3,443		3,443		2,277
Revolving Loans					6
Total loans	614,798		614,798		555,302
Current period gross charge offs, 2023			284
Current period gross charge offs, 2022			5,802
Current period gross charge offs, 2021			2,590
Current period gross charge offs, 2020			1,159
Current period gross charge offs, 2019			359
Current period gross charge offs, Prior			161
Current period gross charge offs, Total			10,355
Consumer | Motor Vehicle | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	221,153		221,153		306,565
Prior year	236,144		236,144		118,362
Two years before current year	80,919		80,919		88,144
Three years before current year	55,243		55,243		29,004
Four years before current year	15,316		15,316		8,652
Prior	3,412		3,412		2,230
Revolving Loans					6
Total loans	612,187		612,187		552,963
Consumer | Motor Vehicle | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	66		66		813
Prior year	1,306		1,306		739
Two years before current year	461		461		437
Three years before current year	562		562		237
Four years before current year	185		185		66
Prior	31		31		47
Total loans	2,611		2,611		2,339
Consumer | All Other Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	10,564		10,564		13,444
Prior year	8,364		8,364		8,161
Two years before current year	4,622		4,622		4,198
Three years before current year	2,534		2,534		1,341
Four years before current year	870		870		441
Prior	754		754		831
Revolving Loans	5,152		5,152		4,821
Total loans	32,860		32,860		33,237
Current period gross charge offs, 2023			6
Current period gross charge offs, 2022			83
Current period gross charge offs, 2021			49
Current period gross charge offs, 2020			30
Current period gross charge offs, 2019			3
Current period gross charge offs, Prior			5
Current period gross charge offs, Revolving Loans			95
Current period gross charge offs, Total			271
Consumer | All Other Consumer | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	10,564		10,564		13,426
Prior year	8,336		8,336		7,914
Two years before current year	4,462		4,462		4,109
Three years before current year	2,483		2,483		1,302
Four years before current year	850		850		429
Prior	748		748		819
Revolving Loans	5,149		5,149		4,819
Total loans	32,592		32,592		32,818
Consumer | All Other Consumer | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year					18
Prior year	28		28		247
Two years before current year	160		160		89
Three years before current year	51		51		39
Four years before current year	20		20		12
Prior	6		6		12
Revolving Loans	3		3		2
Total loans	$ 268		$ 268		$ 419

XML

Allowance for Credit Losses - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) loan
Allowance for loan losses
Number of loans modified that had a payment default | loan	0
Minimum outstanding balance of non-homogeneous loans to be individually evaluated as to credit risk | $	$ 100

XML

Securities - Fair value of securities available for sale and related unrealized gain and loss (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	$ 1,440,831	$ 1,498,626
Unrealized Gains	3,060	3,989
Unrealized Losses	(218,672)	(172,134)
Fair Value	1,225,219	1,330,481
U.S. Government agencies
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	104,753	110,226
Unrealized Gains	4	24
Unrealized Losses	(14,824)	(11,777)
Fair Value	89,933	98,473
Mortgage Backed Securities - residential
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	669,417	711,131
Unrealized Gains	2	133
Unrealized Losses	(112,729)	(91,016)
Fair Value	556,690	620,248
Mortgage Backed Securities - commercial
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	7,958	10,103
Unrealized Losses	(674)	(426)
Fair Value	7,284	9,677
Collateralized Mortgage Obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	214,507	228,344
Unrealized Gains		60
Unrealized Losses	(33,551)	(24,919)
Fair Value	180,956	203,485
State and municipal obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	402,144	396,522
Unrealized Gains	30	745
Unrealized Losses	(49,621)	(37,114)
Fair Value	352,553	360,153
Municipal taxable
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	39,875	39,321
Unrealized Gains		41
Unrealized Losses	(7,247)	(6,847)
Fair Value	32,628	32,515
U.S. Treasury
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	2,177	2,979
Unrealized Losses	(26)	(35)
Fair Value	2,151	2,944
Collateralized debt obligations
Amortized cost and fair value of investments classified as available for sale
Unrealized Gains	3,024	2,986
Fair Value	$ 3,024	$ 2,986

XML

Securities - Contractual maturities of debt securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized Cost
Due in one year or less	$ 9,687
Due after one but within five years	44,613
Due after five but within ten years	101,584
Due after ten years	393,065
Total of securities having specified maturity period	548,949
Mortgage-backed securities and collateralized mortgage obligations	891,882
Amortized Cost	1,440,831	$ 1,498,626
Fair Value
Due in one year or less	9,572
Due after one but within five years	42,259
Due after five but within ten years	96,076
Due after ten years	332,382
Total of securities having specified maturities period	480,289
Mortgage-backed securities and collateralized mortgage obligations	744,930
TOTAL	$ 1,225,219	$ 1,330,481

XML

Securities - Securities Gross (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Less Than 12 Months
Fair Value	$ 180,332	$ 692,782
Unrealized Losses	(5,431)	(63,580)
More Than 12 Months
Fair Value	1,031,493	536,618
Unrealized Losses	(213,241)	(108,554)
Total
Fair Value	1,211,825	1,229,400
Unrealized Losses	(218,672)	(172,134)
U.S. Government agencies
Less Than 12 Months
Fair Value	3,684	58,462
Unrealized Losses	(160)	(4,034)
More Than 12 Months
Fair Value	85,832	38,959
Unrealized Losses	(14,664)	(7,743)
Total
Fair Value	89,516	97,421
Unrealized Losses	(14,824)	(11,777)
Mortgage Backed Securities - residential
Less Than 12 Months
Fair Value	13,339	234,488
Unrealized Losses	(452)	(19,757)
More Than 12 Months
Fair Value	543,186	379,520
Unrealized Losses	(112,277)	(71,259)
Total
Fair Value	556,525	614,008
Unrealized Losses	(112,729)	(91,016)
Mortgage Backed Securities - commercial
Less Than 12 Months
Fair Value		9,677
Unrealized Losses		(426)
More Than 12 Months
Fair Value	7,284
Unrealized Losses	(674)
Total
Fair Value	7,284	9,677
Unrealized Losses	(674)	(426)
Collateralized Mortgage Obligations
Less Than 12 Months
Fair Value	15,852	135,135
Unrealized Losses	(613)	(11,331)
More Than 12 Months
Fair Value	165,104	63,792
Unrealized Losses	(32,938)	(13,588)
Total
Fair Value	180,956	198,927
Unrealized Losses	(33,551)	(24,919)
State and municipal obligations
Less Than 12 Months
Fair Value	145,686	233,439
Unrealized Losses	(4,162)	(24,291)
More Than 12 Months
Fair Value	197,579	41,510
Unrealized Losses	(45,459)	(12,823)
Total
Fair Value	343,265	274,949
Unrealized Losses	(49,621)	(37,114)
Municipal taxable
Less Than 12 Months
Fair Value	1,771	18,637
Unrealized Losses	(44)	(3,706)
More Than 12 Months
Fair Value	30,357	12,837
Unrealized Losses	(7,203)	(3,141)
Total
Fair Value	32,128	31,474
Unrealized Losses	(7,247)	(6,847)
U.S. Treasury
Less Than 12 Months
Fair Value		2,944
Unrealized Losses		(35)
More Than 12 Months
Fair Value	2,151
Unrealized Losses	(26)
Total
Fair Value	2,151	2,944
Unrealized Losses	$ (26)	$ (35)

XML

Securities - Rollforward of the credit losses recognized in earnings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Credit Losses Recognized in Earnings [Roll Forward]
Beginning balance	$ 2,974	$ 2,974	$ 2,974	$ 2,974
Reductions for securities called during the period	0	0	0	0
Ending balance	$ 2,974	$ 2,974	$ 2,974	$ 2,974

XML

Securities - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Securities
Gain on sale of investments	$ 0	$ 0	$ 0	$ 5
Loss on sale of investments	$ 0	$ 0	$ 0	0
Number of investment securities segregation for impairment evaluation | segment	2		2
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale			$ 83,640	$ 141,274
Unrealized Losses	$ 218,672		$ 218,672		$ 172,134

XML

Fair Value - Fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair value measurement
Securities available-for-sale	$ 1,225,219	$ 1,330,481
U.S. Government agencies
Fair value measurement
Securities available-for-sale	89,933	98,473
Mortgage Backed Securities - residential
Fair value measurement
Securities available-for-sale	556,690	620,248
Mortgage Backed Securities - commercial
Fair value measurement
Securities available-for-sale	7,284	9,677
Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	180,956	203,485
State and municipal obligations
Fair value measurement
Securities available-for-sale	352,553	360,153
Municipal taxable
Fair value measurement
Securities available-for-sale	32,628	32,515
U.S. Treasury
Fair value measurement
Securities available-for-sale	2,151	2,944
Collateralized debt obligations
Fair value measurement
Securities available-for-sale	3,024	2,986
Level 2
Fair value measurement
Securities available-for-sale	1,221,015	1,325,950
Derivative Assets	3,608	2,838
Derivative Liability	(3,608)	(2,838)
Level 2 | U.S. Government agencies
Fair value measurement
Securities available-for-sale	89,933	98,473
Level 2 | Mortgage Backed Securities - residential
Fair value measurement
Securities available-for-sale	556,690	620,248
Level 2 | Mortgage Backed Securities - commercial
Fair value measurement
Securities available-for-sale	7,284	9,677
Level 2 | Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	180,956	203,485
Level 2 | State and municipal obligations
Fair value measurement
Securities available-for-sale	351,373	358,608
Level 2 | Municipal taxable
Fair value measurement
Securities available-for-sale	32,628	32,515
Level 2 | U.S. Treasury
Fair value measurement
Securities available-for-sale	2,151	2,944
Level 3
Fair value measurement
Securities available-for-sale	4,204	4,531
Level 3 | State and municipal obligations
Fair value measurement
Securities available-for-sale	1,180	1,545
Level 3 | Collateralized debt obligations
Fair value measurement
Securities available-for-sale	$ 3,024	$ 2,986

XML

Fair Value - Additional Information (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value, assets, level 1 to level 2 transfers, amount	$ 0	$ 0
Fair value, assets, level 2 to level 1 transfers, amount	0	0
Fair value, liabilities, level 1 to level 2 transfers, amount	0	0
Fair value, liabilities, level 2 to level 1 transfers, amount	$ 0	$ 0
Discount rate | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0
Discount rate | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0.50

XML

Fair Value - Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	$ 4,121	$ 4,531	$ 5,254
Total realized/unrealized gains or losses - Included in other comprehensive income	83	38	(373)
Settlements		(365)	(350)
Ending balance	4,204	4,204	4,531
State and municipal obligations
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	1,180	1,545	1,895
Settlements		(365)	(350)
Ending balance	1,180	1,180	1,545
Collateralized debt obligations
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	2,941	2,986	3,359
Total realized/unrealized gains or losses - Included in other comprehensive income	83	38	(373)
Ending balance	$ 3,024	$ 3,024	$ 2,986

XML

Fair Value - Quantitative information about recurring and non-recurring Level 3 fair value measurements (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
state and municipal obligations | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Fair Value	$ 1,180	$ 1,545
state and municipal obligations | Minimum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0404	0.0373
state and municipal obligations | Maximum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0444	0.0444
Collateralized debt obligations | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0722	0.0534
Collateralized debt obligations | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Fair Value	$ 3,024	$ 2,986
Collateral dependent loans | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Fair Value	$ 1,812	$ 4,477
Collateral dependent loans | Minimum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0000	0.0000
Collateral dependent loans | Maximum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.5000	0.5000

XML

Fair Value - Carrying amounts and estimated fair value of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	$ 74,668	$ 222,517
Federal funds sold	688	9,374
Securities available-for-sale	1,225,219	1,330,481
Restricted stock	15,398	15,378
Loans, net	2,901,310	2,930,680
Accrued interest receivable	22,546	21,288
Deposits	(4,035,772)	(4,369,402)
Short-term borrowings	(132,734)	(70,875)
Other Borrowings	(84,614)	(8,788)
Accrued interest payable	(1,929)	(483)
Level 1
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	25,257	29,400
Level 2
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	49,411	193,117
Federal funds sold	688	9,374
Securities available-for-sale	1,221,015	1,325,950
Accrued interest receivable	6,837	5,529
Deposits	(4,035,772)	(4,369,402)
Short-term borrowings	(132,734)	(70,875)
Other Borrowings	(84,614)	(8,788)
Accrued interest payable	(1,929)	(483)
Level 3
Carrying amount and estimated fair value of financial instruments
Securities available-for-sale	4,204	4,531
Loans, net	2,901,310	2,930,680
Accrued interest receivable	15,709	15,759
Carrying Value
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	74,668	222,517
Federal funds sold	688	9,374
Securities available-for-sale	1,225,219	1,330,481
Restricted stock	15,398	15,378
Loans, net	3,078,592	3,027,659
Accrued interest receivable	22,546	21,288
Deposits	(4,040,995)	(4,368,871)
Short-term borrowings	(132,734)	(70,875)
Other Borrowings	(84,578)	(9,589)
Accrued interest payable	$ (1,929)	$ (483)

XML

Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Borrowings
Federal Funds Purchased	$ 63,425	$ 3,000
Repurchase Agreements	69,309	67,875
Short-term borrowings	$ 132,734	$ 70,875

XML

Borrowings - Repurchase Agreements (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Repurchase Agreements
Repurchase Agreements	$ 69,309	$ 67,875
Overnight and continuous
Repurchase Agreements
Repurchase Agreements	63,008	63,335
Up to 30 days
Repurchase Agreements
Repurchase Agreements	300
30 - 90 days
Repurchase Agreements
Repurchase Agreements	1,450	4,175
Greater than 90 days
Repurchase Agreements
Repurchase Agreements	$ 4,551	$ 365

XML

Borrowings - Schedule of Other Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Borrowings
FHLB advances	$ 84,578	$ 9,589
TOTAL	$ 84,578	$ 9,589

XML

Borrowings - Aggregate Minimum Annual Retirements (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Borrowings
2024	$ 78,618
2025	1,007
2026	4,953
Total other borrowings	$ 84,578

XML

Components of Net Periodic Benefit Cost - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 157	$ 297	$ 471	$ 892
Interest cost	956	707	2,868	2,120
Expected return on plan assets	(970)	(1,227)	(2,909)	(3,682)
Net amortization of net (gain) loss	188	315	564	944
Net periodic pension cost	331	92	994	274
Post-Retirement Health Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	5	8	15	25
Interest cost	38	28	115	83
Net amortization of net (gain) loss	(13)		(40)
Net periodic pension cost	$ 30	$ 36	$ 90	$ 108

XML

Components of Net Periodic Benefit Cost - Employer Contributions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Amount of potential discretionary contributions accrued to a defined contribution plan	$ 1,900,000		$ 1,700,000
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected future benefit payment		$ 0
Pension Benefits | Employee Stock Option [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected future benefit payment		642,000
Contributions by employer	0
Post-Retirement Health Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected future benefit payment		$ 245,000
Contributions by employer	$ 163,000

XML

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from Contracts with Customers
Net gains on sales of loans	$ 321	$ 440		$ 811	$ 1,705
Loan servicing fees	447	457		997	1,184
Net gains/(losses) on sales of securities					5
Other service charges and fees	213	160		613	488
Other	2,407	2,954		4,374	7,963
TOTAL NON-INTEREST INCOME	11,627	12,140		31,455	36,148
Legal settlement received			$ 4,000
Service charges on deposits and debit card fee income
Revenue from Contracts with Customers
Revenue within scope of ASC 606	7,099	6,965		20,971	20,698
Asset management fees
Revenue from Contracts with Customers
Revenue within scope of ASC 606	1,140	1,015		3,642	3,687
Interchange income
Revenue from Contracts with Customers
Revenue within scope of ASC 606		149		47	418
Other,
Revenue from Contracts with Customers
Revenue within scope of ASC 606	$ 0	$ 0		$ (31)	$ 85

XML

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (141,250)	$ (126,630)	$ (139,974)	$ (2,426)
Change in Other comprehensive income (loss) before reclassification, Unrealized gains and Losses on available-for-sale Securities	(34,934)	(41,060)	(36,504)	(165,889)
Amount reclassified from accumulated other comprehensive income, unrealized gain and losses and available for sale securities	146	315	440	940
Net current period other comprehensive income (loss)	(34,788)	(40,745)	(36,064)	(164,949)
Ending balance	(176,038)	(167,375)	(176,038)	(167,375)
Unrealized gains and (Losses) on available- for-sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(130,466)	(109,159)	(128,896)	15,674
Change in Other comprehensive income (loss) before reclassification, Unrealized gains and Losses on available-for-sale Securities	(34,934)	(41,060)	(36,504)	(165,889)
Amount reclassified from accumulated other comprehensive income, unrealized gain and losses and available for sale securities				(4)
Net current period other comprehensive income (loss)	(34,934)	(41,060)	(36,504)	(165,893)
Ending balance	(165,400)	(150,219)	(165,400)	(150,219)
Retirement plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(10,784)	(17,471)	(11,078)	(18,100)
Amount reclassified from accumulated other comprehensive income, unrealized gain and losses and available for sale securities	146	315	440	944
Net current period other comprehensive income (loss)	146	315	440	944
Ending balance	$ (10,638)	$ (17,156)	$ (10,638)	$ (17,156)

XML

Accumulated Other Comprehensive Income - Unrealized gains (losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ (141,250)	$ (126,630)	$ (139,974)	$ (2,426)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(34,788)	(40,745)	(36,064)	(164,949)
Ending balance	(176,038)	(167,375)	(176,038)	(167,375)
Unrealized gains and (Losses) on available- for-sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(130,466)	(109,159)	(128,896)	15,674
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(34,934)	(41,060)	(36,504)	(165,893)
Ending balance	(165,400)	(150,219)	(165,400)	(150,219)
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(132,671)	(111,474)	(131,135)	13,155
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(34,997)	(41,078)	(36,533)	(165,707)
Ending balance	(167,668)	(152,552)	(167,668)	(152,552)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	2,205	2,315	2,239	2,519
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	63	18	29	(186)
Ending balance	2,268	2,333	2,268	2,333
Retirement plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(10,784)	(17,471)	(11,078)	(18,100)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	146	315	440	944
Ending balance	$ (10,638)	$ (17,156)	$ (10,638)	$ (17,156)

XML

Accumulated Other Comprehensive Income - Amount reclassified from accumulated other comprehensive income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Securities gains, net				$ 5
Income tax expense	$ (3,027)	$ (4,639)	$ (10,143)	(14,172)
Net Income (Loss)	16,285	18,051	48,252	54,588
Amount reclassified from accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net Income (Loss)	(146)	(315)	(440)	(940)
Unrealized gains and (Losses) on available- for-sale Securities | Amount reclassified from accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Securities gains, net				5
Income tax expense				(1)
Net Income (Loss)				4
Retirement plans | Amount reclassified from accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Change in funded status of post retirement benefits, net of taxes	(195)	(420)	(587)	(1,260)
Income tax expense	49	105	147	316
Net Income (Loss)	$ (146)	$ (315)	$ (440)	$ (944)

XML

Leases (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Leases
Operating lease liabilities	$ 5,657,000	$ 5,885,000
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities	Other Liabilities
Operating lease right-of-use assets	$ 5,599,000	$ 5,840,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Weighted average remaining lease term for operating leases	9 years 2 months 12 days
Weighted average discount rate	2.16%

XML

Leases - Lease cost (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Leases
Operating lease cost	$ 766
Short-term lease cost	100
Variable lease cost	11
Total lease cost	877
Cash paid for amounts included in the measurement of operating lease liabilities	730
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 378

XML

Leases - Future minimum payments for operating leases (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Twelve Months Ended March 31,
2024	$ 904,000
2025	882,000
2026	812,000
2027	771,000
2028	708,000
Thereafter	2,354,000
Total Future Minimum Lease Payments	6,431,000
Amounts Representing Interest	(774,000)
Present Value of Net Future Minimum Lease Payments	$ 5,657,000	$ 5,885,000

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 16,285	$ 18,051	$ 48,252	$ 54,588

XML

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule10b51ArrModified [Flag]	false
NonRule10b51ArrModified [Flag]	false