LOANS AND LEASES

6 Months Ended

Jun. 30, 2022

First Financial offers clients a variety of commercial and consumer loan and lease products with diverse interest rates and payment terms. Commercial loan categories include C&I, CRE, construction real estate and lease financing. Consumer loan categories include residential real estate, home equity, installment and credit card.

Lending activities are primarily concentrated in states where the Bank operates banking centers (Ohio, Indiana, Kentucky and Illinois). First Financial also has certain lending platforms that extend beyond the geographic banking center footprint to provide financing to franchise owners and clients within the financial services industry as well as equipment lease financing to commercial businesses.

In accordance with the CARES Act and the 2021 Consolidated Appropriations Act, First Financial participated in offering PPP loans to its customers. These loans provide a direct incentive for small businesses to keep their workers on the payroll and to maintain their operations during the COVID-19 pandemic. PPP loans are eligible to be forgiven provided certain conditions are met. As of June 30, 2022, First Financial had $8.5 million in PPP loans, net of unearned fees of $0.4 million. As of December 31, 2021, First Financial had $55.6 million in PPP loans, net of unearned fees of $2.6 million.

Credit Quality. To facilitate the monitoring of credit quality for commercial loans, First Financial utilizes the following categories of credit grades:

Pass - Higher quality loans that do not fit any of the other categories described below.

Special Mention - First Financial assigns a special mention rating to loans and leases with potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan, lease or First Financial's credit position at some future date.

Substandard - First Financial assigns a substandard rating to loans or leases that are inadequately protected by the current sound financial worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans and leases have well-defined weaknesses that jeopardize repayment of the debt. Substandard loans and leases are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not addressed.

Doubtful - First Financial assigns a doubtful rating to loans and leases with all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans.

The credit grades previously described are derived from standard regulatory rating definitions and are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

First Financial considers repayment performance to be the best indicator of credit quality for consumer loans. Consumer loans that have principal and interest payments that are past due by 90 days or more are generally classified as nonperforming. Additionally, consumer loans that have been modified in a TDR are classified as nonperforming.

The following table sets forth the Company's loan portfolio at June 30, 2022 by risk attribute and origination date:


(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	325,110	$	647,089	$	384,291	$	281,475	$	135,440	$	229,061	$	2,002,466	$	851,946	$	2,854,412
Special mention	0		337		17,943		5,607		14,533		1,855		40,275		9,028		49,303
Substandard	2,681		1,843		352		2,619		975		10,274		18,744		3,085		21,829
Doubtful	0		0		0		0		0		1,631		1,631		0		1,631
Total	$	327,791	$	649,269	$	402,586	$	289,701	$	150,948	$	242,821	$	2,063,116	$	864,059	$	2,927,175
Lease financing
Pass	$	20,806	$	38,104	$	37,910	$	21,414	$	17,257	$	10,812	$	146,303	$	0	$	146,303
Special mention	0		0		119		0		0		0		119		0		119
Substandard	0		0		0		182		21		14		217		0		217

Total	$	20,806	$	38,104	$	38,029	$	21,596	$	17,278	$	10,826	$	146,639	$	0	$	146,639
Construction real estate
Pass	$	24,761	$	206,791	$	134,445	$	40,933	$	398	$	12,023	$	419,351	$	21,379	$	440,730
Special mention	0		0		0		0		9,004		0		9,004		0		9,004
Substandard	0		0		0		0		0		0		0		0		0

Total	$	24,761	$	206,791	$	134,445	$	40,933	$	9,402	$	12,023	$	428,355	$	21,379	$	449,734
Commercial real estate - investor
Pass	$	207,449	$	560,230	$	338,559	$	798,201	$	339,175	$	599,050	$	2,842,664	$	22,842	$	2,865,506
Special mention	0		0		20,378		21,262		40,144		13,974		95,758		495		96,253
Substandard	0		0		6		35,367		557		30,353		66,283		0		66,283
Doubtful	0		0		0		0		2,546		0		2,546		0		2,546
Total	$	207,449	$	560,230	$	358,943	$	854,830	$	382,422	$	643,377	$	3,007,251	$	23,337	$	3,030,588
Commercial real estate - owner
Pass	$	91,197	$	154,858	$	174,846	$	109,212	$	126,449	$	268,907	$	925,469	$	8,493	$	933,962
Special mention	0		5,383		2,239		2,545		3,569		14,784		28,520		0		28,520
Substandard	0		59		36		713		11,230		1,929		13,967		0		13,967

Total	$	91,197	$	160,300	$	177,121	$	112,470	$	141,248	$	285,620	$	967,956	$	8,493	$	976,449
Residential real estate
Performing	$	152,348	$	271,360	$	215,004	$	120,384	$	55,956	$	142,741	$	957,793	$	0	$	957,793
Nonperforming	0		715		651		1,671		937		3,620		7,594		0		7,594
Total	$	152,348	$	272,075	$	215,655	$	122,055	$	56,893	$	146,361	$	965,387	$	0	$	965,387
Home equity
Performing	$	15,282	$	36,141	$	41,255	$	13,100	$	9,279	$	30,521	$	145,578	$	576,134	$	721,712
Nonperforming	0		55		180		171		88		490		984		3,004		3,988
Total	$	15,282	$	36,196	$	41,435	$	13,271	$	9,367	$	31,011	$	146,562	$	579,138	$	725,700
Installment
Performing	$	34,269	$	46,973	$	9,625	$	5,662	$	3,903	$	4,406	$	104,838	$	41,398	$	146,236
Nonperforming	62		265		59		9		10		0		405		39		444
Total	$	34,331	$	47,238	$	9,684	$	5,671	$	3,913	$	4,406	$	105,243	$	41,437	$	146,680
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,595	$	51,595
Nonperforming	0		0		0		0		0		0		0		470		470
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	52,065	$	52,065
Grand Total	$	873,965	$	1,970,203	$	1,377,898	$	1,460,527	$	771,471	$	1,376,445	$	7,830,509	$	1,589,908	$	9,420,417

The following table sets forth the Company's loan portfolio at December 31, 2021 by risk attribute and origination date:


(Dollars in thousands)	2021		2020		2019		2018		2017		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	711,198	$	442,064	$	339,507	$	164,273	$	119,580	$	154,835	$	1,931,457	$	700,246	$	2,631,703
Special mention	389		4,867		5,993		16,057		6,511		4,918		38,735		21,505		60,240
Substandard	2,220		434		2,843		1,224		12,640		1,465		20,826		7,259		28,085

Total	$	713,807	$	447,365	$	348,343	$	181,554	$	138,731	$	161,218	$	1,991,018	$	729,010	$	2,720,028
Lease financing
Pass	$	31,697	$	21,536	$	19,095	$	15,494	$	6,821	$	4,765	$	99,408	$	0	$	99,408
Special mention	0		10,216		0		0		0		0		10,216		0		10,216
Substandard	0		0		0		0		0		0		0		0		0

Total	$	31,697	$	31,752	$	19,095	$	15,494	$	6,821	$	4,765	$	109,624	$	0	$	109,624
Construction real estate
Pass	$	95,991	$	200,421	$	96,726	$	15,886	$	317	$	12,719	$	422,060	$	18,299	$	440,359
Special mention	0		6,531		0		9,004		0		0		15,535		0		15,535
Substandard	0		0		0		0		0		0		0		0		0

Total	$	95,991	$	206,952	$	96,726	$	24,890	$	317	$	12,719	$	437,595	$	18,299	$	455,894
Commercial real estate - investor
Pass	$	537,183	$	379,217	$	944,915	$	367,946	$	294,147	$	434,641	$	2,958,049	$	66,579	$	3,024,628
Special mention	0		7,479		18,136		18,006		15,566		34,153		93,340		0		93,340
Substandard	1,616		6		21,312		6,628		6,918		307		36,787		0		36,787

Total	$	538,799	$	386,702	$	984,363	$	392,580	$	316,631	$	469,101	$	3,088,176	$	66,579	$	3,154,755
Commercial real estate - owner
Pass	$	204,291	$	184,564	$	121,150	$	135,463	$	119,489	$	259,504	$	1,024,461	$	7,565	$	1,032,026
Special mention	970		2,283		2,262		3,751		1,381		5,512		16,159		0		16,159
Substandard	162		727		6,541		12,513		1,730		1,963		23,636		38		23,674
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	205,423	$	187,574	$	129,953	$	151,727	$	122,600	$	266,979	$	1,064,256	$	7,603	$	1,071,859
Residential real estate
Performing	$	258,537	$	230,699	$	138,239	$	64,310	$	34,606	$	162,924	$	889,315	$	0	$	889,315
Nonperforming	236		970		1,193		598		339		3,418		6,754		0		6,754
Total	$	258,773	$	231,669	$	139,432	$	64,908	$	34,945	$	166,342	$	896,069	$	0	$	896,069
Home equity
Performing	$	42,298	$	45,638	$	14,713	$	11,221	$	7,603	$	30,588	$	152,061	$	553,245	$	705,306
Nonperforming	72		161		44		67		56		234		634		2,459		3,093
Total	$	42,370	$	45,799	$	14,757	$	11,288	$	7,659	$	30,822	$	152,695	$	555,704	$	708,399
Installment
Performing	$	58,209	$	12,768	$	8,213	$	5,541	$	3,925	$	2,201	$	90,857	$	28,353	$	119,210
Nonperforming	6		61		32		9		1		56		165		79		244
Total	$	58,215	$	12,829	$	8,245	$	5,550	$	3,926	$	2,257	$	91,022	$	28,432	$	119,454
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,772	$	51,772
Nonperforming	0		0		0		0		0		0		0		445		445
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	52,217	$	52,217
Grand Total	$	1,945,075	$	1,550,642	$	1,740,914	$	847,991	$	631,630	$	1,114,203	$	7,830,455	$	1,457,844	$	9,288,299

Delinquency. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the date of the scheduled payment.

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


	As of June 30, 2022
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 90 days past due		Total past due		Current		Total		> 90 days past due and still accruing
Loans
Commercial & industrial	$	1,550	$	27	$	3,587	$	5,164	$	2,922,011	$	2,927,175	$	0
Lease financing	0		0		0		0		146,639		146,639		0
Construction real estate	0		0		0		0		449,734		449,734		0
Commercial real estate-investor	0		0		3,103		3,103		3,027,485		3,030,588		0
Commercial real estate-owner	931		0		61		992		975,457		976,449		0
Residential real estate	3,980		1,344		2,269		7,593		957,794		965,387		0
Home equity	1,783		376		1,828		3,987		721,713		725,700		0
Installment	97		24		17		138		146,542		146,680		0
Credit card	357		183		236		776		51,289		52,065		142
Total	$	8,698	$	1,954	$	11,101	$	21,753	$	9,398,664	$	9,420,417	$	142


	As of December 31, 2021
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 90 days past due		Total past due		Current		Total		> 90 days past due and still accruing
Loans
Commercial & industrial	$	303	$	2,006	$	2,775	$	5,084	$	2,714,944	$	2,720,028	$	0
Lease financing	93		0		0		93		109,531		109,624		0
Construction real estate	0		0		0		0		455,894		455,894		0
Commercial real estate-investor	89		42		6,409		6,540		3,148,215		3,154,755		0
Commercial real estate-owner	56		2,207		637		2,900		1,068,959		1,071,859		0
Residential real estate	4,379		262		2,114		6,755		889,314		896,069		0
Home equity	1,214		692		1,186		3,092		705,307		708,399		0
Installment	162		37		45		244		119,210		119,454		0
Credit card	223		134		137		494		51,723		52,217		137
Total	$	6,519	$	5,380	$	13,303	$	25,202	$	9,263,097	$	9,288,299	$	137

Nonaccrual. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to the continued failure to adhere to contractual payment terms by the borrower, coupled with other pertinent factors. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan classified as nonaccrual may return to accrual status if none of the principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual principal and interest.

Troubled Debt Restructurings. A loan modification is considered a TDR when the borrower is experiencing financial difficulty and a concession is made by the Company that would not otherwise be considered for a borrower with similar credit characteristics. The most common types of modifications include interest rate reductions, maturity extensions and modifications to principal amortization, including interest-only structures. Modified terms are dependent upon the financial position and needs of the individual borrower. If the modification agreement is violated, the loan is managed by the Company’s credit administration group for resolution, which may result in foreclosure in the case of real estate.

TDRs are generally classified as nonaccrual for a minimum period of six months and may qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement.

First Financial had 127 TDRs totaling $20.7 million at June 30, 2022, including $11.2 million on accrual status and $9.5 million classified as nonaccrual. First Financial had no commitments outstanding to lend additional funds to borrowers whose loan terms have been modified through TDRs, and the ACL included reserves of $3.5 million related to TDRs at June 30, 2022. Additionally, as of June 30, 2022, $5.2 million of accruing TDRs have been performing in accordance with the restructured terms for more than one year.

First Financial had 150 TDRs totaling $27.6 million at December 31, 2021, including $11.6 million of loans on accrual status and $16.0 million classified as nonaccrual. First Financial had $0.2 million commitments outstanding to lend additional funds to borrowers whose loan terms had been modified through TDRs. At December 31, 2021, the ACL included reserves of $6.3 million related to TDRs, and $5.0 million of the accruing TDRs had been performing in accordance with the restructured terms for more than one year.

The following tables provide information on loan modifications classified as TDRs during the three and six months ended June 30, 2022 and 2021:


	Three months ended
	June 30, 2022					June 30, 2021
(Dollars in thousands)	Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance
Commercial & industrial	3	$	5,584	$	5,584	1	$	1,761	$	1,761
Construction real estate	0	0		0		0	0		0
Commercial real estate	0	0		0		0	0		0
Residential real estate	3	324		317		3	97		90
Home equity	0	0		0		1	16		16
Installment	0	0		0		0	0		0
Total	6	$	5,908	$	5,901	5	$	1,874	$	1,867

	Six months ended
	June 30, 2022					June 30, 2021
(Dollars in thousands)	Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance
Commercial & industrial	6	$	10,049	$	8,825	5	$	4,967	$	4,831
Construction real estate	0	0		0		0	0		0
Commercial real estate	1	387		80		7	10,015		9,046
Residential real estate	6	664		643		13	1,120		1,090
Home equity	1	32		32		2	30		30
Installment	0	0		0		0	0		0
Total	14	$	11,132	$	9,580	27	$	16,132	$	14,997

For TDRs identified during the three and six months ended June 30, 2022, there were $0.8 million and $3.2 million of charge-offs for the portion of TDRs determined to be uncollectible, respectively. For TDRs identified during the three months ended June 30, 2021, there were no charge-offs for the portion of TDRs determined to be uncollectible. For TDRs identified during the six months ended June 30, 2021, there were insignificant charge-offs for the portion of TDRs determined to be uncollectible.

The following table provides information on how TDRs were modified during the three and six months ended June 30, 2022 and 2021:


	Three months ended				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2022		2021		2022		2021
Extended maturities	$	3,345	$	0	$	3,345	$	0
Adjusted interest rates	0		0		0		0
Combination of rate and maturity changes	0		0		0		0
Forbearance	317		84		3,964		6,247
Bankruptcies	0		21		0		6,580
Other (1)	2,239		1,762		2,271		2,170
Total	$	5,901	$	1,867	$	9,580	$	14,997

(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance, bankruptcy and maturity extensions

First Financial considers repayment performance as an indication of the effectiveness of the Company's loan modifications. Borrowers that are 90 days or more past due on any principal or interest payments, or who prematurely terminate a restructured loan agreement without paying off the contractual principal balance, are considered to be in default of the terms of the TDR agreement.

For each of the three and six month periods ended June 30, 2022 and June 30, 2021, there were no TDR relationships for which there was a payment default during the period that occurred within twelve months of the loan modifications.

As stated in the CARES Act and subsequently modified by the Consolidated Appropriations Act, loan modifications in response to COVID-19 executed on loans that were not more than 30 days past due as of December 31, 2019 and executed between March 1, 2020 and January 1, 2022 are not required to be reported as TDR.

As of June 30, 2022, the Company's loan portfolio included no active loan modifications made under the guidance of the CARES Act that were not classified as TDR. As of December 31, 2021, the Company had $16.5 million of active loan modifications made under the guidance of the CARES Act that were not classified as TDR. These modifications were comprised of two commercial loans making interest-only payments.

Nonperforming loans. Loans classified as nonaccrual and loans modified as TDRs are considered nonperforming. The following table provides information on nonperforming loans:


	June 30, 2022						December 31, 2021
(Dollars in thousands)	Nonaccrual loans with a related ACL		Nonaccrual loans with no related ACL		Total nonaccrual		Nonaccrual loans with a related ACL		Nonaccrual loans with no related ACL		Total nonaccrual
Nonaccrual loans (1)
Commercial & industrial	$	6,292	$	5,383	$	11,675	$	11,077	$	6,285	$	17,362
Lease financing	0		217		217		0		203		203
Construction real estate	0		0		0		0		0		0
Commercial real estate	0		14,650		14,650		17,716		1,796		19,512
Residential real estate	260		8,619		8,879		0		8,305		8,305
Home equity	0		3,331		3,331		0		2,922		2,922
Installment	0		170		170		0		88		88
Total nonaccrual loans	$	6,552	$	32,370	$	38,922	$	28,793	$	19,599	$	48,392

(1) Nonaccrual loans include nonaccrual TDRs of $9.5 million and $16.0 million as of June 30, 2022 and December 31, 2021, respectively.


	Three months ended				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2022		2021		2022		2021
Interest income effect on nonperforming loans
Gross amount of interest that would have been recorded under original terms	$	815	$	1,591	$	1,588	$	3,078
Interest included in income
Nonaccrual loans	268		442		558		925
Troubled debt restructurings	111		87		162		173
Total interest included in income	379		529		720		1,098
Net impact on interest income	$	436	$	1,062	$	868	$	1,980

First Financial individually reviews all nonperforming loan relationships greater than $250,000 to determine if an individually evaluated allowance is necessary based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Individually evaluated allowances are based on discounted cash flows using the loan's initial effective interest rate or the fair value of the collateral for certain collateral dependent loans.

A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral. The following table presents the amortized cost basis of collateral dependent loans by class of loan.


	June 30, 2022
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	11,586	$	0	$	30	$	0	$	0	$	59	$	11,675
Lease financing	0		0		217		0		0		0		217
Commercial real estate-investor	0		3,103		0		0		101		0		3,204
Commercial real estate-owner	0		5,889		5,468		36		53		0		11,446
Residential real estate	0		0		0		0		8,879		0		8,879
Home equity	0		0		0		0		3,331		0		3,331
Installment	0		0		0		0		0		170		170
Total	$	11,586	$	8,992	$	5,715	$	36	$	12,364	$	229	$	38,922

	December 31, 2021
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	13,171	$	15	$	833	$	0	$	0	$	3,343	$	17,362
Leasing	0		0		203		0		0		0		203
Commercial real estate-investor	0		6,362		0		0		422		0		6,784
Commercial real estate-owner	0		6,673		5,937		38		80		0		12,728
Residential real estate	0		0		0		0		8,305		0		8,305
Home equity	0		0		0		0		2,922		0		2,922
Installment	0		0		0		0		0		88		88
Total	$	13,171	$	13,050	$	6,973	$	38	$	11,729	$	3,431	$	48,392

Lease financing - Lessor. First Financial originates both sales-type and direct financing leases, and the Company manages and reviews lease residuals in accordance with its credit policies. Sales-type lease contracts contain the ability to purchase the underlying equipment at lease maturity and profit or loss is recognized at lease commencement. Direct financing leases are generally three to five years in length and may be extended at maturity, however, early cancellation may result in a fee to the borrower. For direct financing leases, the net unearned income is deferred and amortized over the life of the lease.

Effective December 31, 2021, First Financial acquired Summit Funding Group, Inc., which is a full-service equipment leasing company. In conjunction with this acquisition, First Financial acquired $41.8 million of financing leases, which were included in Loans and leases on the Consolidated Balance Sheets. For further detail on the acquisition, see Note 18 - Business Combinations.

The components of the Company's net investments in direct financing and sales-type leases, which are included in Lease financing on the Consolidated Balance Sheets are as follows:


(Dollar in thousands)	June 30, 2022		December 31, 2021
Direct financing leases
Lease receivables	$	45,308	$	49,843
Unguaranteed residual values	16,535		19,714
Sales-type leases
Lease receivables	84,796		40,067
Unguaranteed residual values	0		0
Total net investment in direct financing and sales-type leases	$	146,639	$	109,624

Interest income for direct financing and sales-type leases was $2.6 million and $0.7 million for the three months ended June 30, 2022 and June 30, 2021, respectively. Interest income for direct financing and sales-type leases was $4.9 million and $1.4 million for the six months ended June 30, 2022 and June 30, 2021, respectively.

The remaining maturities of lease receivables were as follows:



(Dollars in thousands)	Direct financing and Sales-type
Remainder of 2022	$	18,797
2023	31,428
2024	29,327
2025	16,575
2026	18,388
Thereafter	29,300
Total lease payments	143,815
Less: unearned interest income	(13,711)
Net lease receivables	$	130,104

OREO. OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, that results in partial or total satisfaction of problem loans.

Changes in OREO were as follows:


	Three months ended				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	72	$	854	$	98	$	1,287
Additions
Commercial & industrial	0		98		0		98
Residential real estate	64		0		136		0
Total additions	64		98		136		98
Disposals
Commercial & industrial	0		(522)		(98)		(768)
Residential real estate	(72)		(81)		(72)		(268)
Total disposals	(72)		(603)		(170)		(1,036)
Valuation adjustment
Commercial & industrial	0		(9)		0		(9)
Residential real estate	(42)		0		(42)		0
Total valuation adjustment	(42)		(9)		(42)		(9)
Balance at end of period	$	22	$	340	$	22	$	340