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LOANS AND LEASES | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
LOANS AND LEASES | Loans and Leases First Financial offers clients a variety of commercial and consumer loan and lease products with various 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 offers two nationwide lending platforms, one that provides equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector and another that provides loans that are secured by commissions and cash collateral accounts to insurance agents and brokers. 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 or lease or in 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 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 of the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. The credit grades previously described are derived from standard regulatory rating definitions and are assigned upon initial approval of credit to borrowers and updated periodically thereafter. First Financial considers repayment performance to be the best indicator of credit quality for consumer loans. Consumer loans that have principal and interest payments that are past due by 90 days or more are generally classified as nonperforming. In 2022 and all years prior that are presented below, consumer loans that have been modified in a TDR are classified as nonperforming. The following table sets forth the Company's loan portfolio at December 31, 2023 by risk attribute and origination date as well as detailing current period chargeoffs by year of origination:
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Term Total |  | Revolving |  | Total
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 848,448 |  |  | $ | 736,213 |  |  | $ | 414,460 |  |  | $ | 265,143 |  |  | $ | 113,296 |  |  | $ | 226,970 |  |  | $ | 2,604,530 |  |  | $ | 774,080 |  |  | $ | 3,378,610 |
Special mention |  | 0 |  |  | 13,373 |  |  | 4,970 |  |  | 882 |  |  | 19,560 |  |  | 1,328 |  |  | 40,113 |  |  | 8,882 |  |  | 48,995 |
Substandard |  | 3,133 |  |  | 21,505 |  |  | 11,483 |  |  | 1,205 |  |  | 1,023 |  |  | 9,990 |  |  | 48,339 |  |  | 25,277 |  |  | 73,616 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 851,581 |  |  | $ | 771,091 |  |  | $ | 430,913 |  |  | $ | 267,230 |  |  | $ | 133,879 |  |  | $ | 238,288 |  |  | $ | 2,692,982 |  |  | $ | 808,239 |  |  | $ | 3,501,221 |
YTD Gross chargeoffs |  | $ | 10 |  |  | $ | 2,978 |  |  | $ | 7,267 |  |  | $ | 7,055 |  |  | $ | 936 |  |  | $ | 929 |  |  | $ | 19,175 |  |  | $ | 0 |  |  | $ | 19,175 |
Lease financing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 261,064 |  |  | $ | 186,997 |  |  | $ | 6,404 |  |  | $ | 1,189 |  |  | $ | 2,222 |  |  | $ | 523 |  |  | $ | 458,399 |  |  | $ | 0 |  |  | $ | 458,399 |
Special mention |  | 4,761 |  | 8,047 |  | 0 |  | 0 |  | 0 |  | 0 |  | 12,808 |  | 0 |  | 12,808
Substandard |  | 1,407 |  | 1,961 |  | 97 |  | 0 |  | 145 |  | 0 |  | 3,610 |  | 0 |  | 3,610
Doubtful |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0
Total |  | $ | 267,232 |  |  | $ | 197,005 |  |  | $ | 6,501 |  |  | $ | 1,189 |  |  | $ | 2,367 |  |  | $ | 523 |  |  | $ | 474,817 |  |  | $ | 0 |  |  | $ | 474,817 |
YTD Gross chargeoffs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 4,423 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 4,423 |  |  | $ | 0 |  |  | $ | 4,423 |
Construction real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 170,259 |  |  | $ | 208,446 |  |  | $ | 108,886 |  |  | $ | 27,686 |  |  | $ | 7,784 |  |  | $ | 6,165 |  |  | $ | 529,226 |  |  | $ | 19,275 |  |  | $ | 548,501 |
Special mention |  | 0 |  |  | 0 |  |  | 0 |  |  | 16,331 |  |  | 0 |  |  | 0 |  |  | 16,331 |  |  | 0 |  |  | 16,331 |
Substandard |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 170,259 |  |  | $ | 208,446 |  |  | $ | 108,886 |  |  | $ | 44,017 |  |  | $ | 7,784 |  |  | $ | 6,165 |  |  | $ | 545,557 |  |  | $ | 19,275 |  |  | $ | 564,832 |
YTD Gross chargeoffs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Commercial real estate - investor |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 468,579 |  |  | $ | 595,423 |  |  | $ | 473,325 |  |  | $ | 261,794 |  |  | $ | 554,893 |  |  | $ | 636,598 |  |  | $ | 2,990,612 |  |  | $ | 39,668 |  |  | $ | 3,030,280 |
Special mention |  | 7,894 |  |  | 9,345 |  |  | 12,134 |  |  | 110 |  |  | 32,756 |  |  | 14,204 |  |  | 76,443 |  |  | 0 |  |  | 76,443 |
Substandard |  | 0 |  |  | 0 |  |  | 0 |  |  | 6,238 |  |  | 0 |  |  | 25,668 |  |  | 31,906 |  |  | 0 |  |  | 31,906 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 476,473 |  |  | $ | 604,768 |  |  | $ | 485,459 |  |  | $ | 268,142 |  |  | $ | 587,649 |  |  | $ | 676,470 |  |  | $ | 3,098,961 |  |  | $ | 39,668 |  |  | $ | 3,138,629 |
YTD Gross chargeoffs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 859 |  |  | $ | 2,030 |  |  | $ | 0 |  |  | $ | 3,119 |  |  | $ | 6,008 |  |  | $ | 0 |  |  | $ | 6,008 |
Commercial real estate - owner |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 138,932 |  |  | $ | 175,336 |  |  | $ | 130,240 |  |  | $ | 138,919 |  |  | $ | 86,182 |  |  | $ | 215,458 |  |  | $ | 885,067 |  |  | $ | 22,639 |  |  | $ | 907,706 |
Special mention |  | 396 |  |  | 45 |  |  | 179 |  |  | 2,403 |  |  | 462 |  |  | 19,807 |  |  | 23,292 |  |  | 0 |  |  | 23,292 |
Substandard |  | 0 |  |  | 0 |  |  | 3,919 |  |  | 835 |  |  | 1,324 |  |  | 5,234 |  |  | 11,312 |  |  | 0 |  |  | 11,312 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 139,328 |  |  | $ | 175,381 |  |  | $ | 134,338 |  |  | $ | 142,157 |  |  | $ | 87,968 |  |  | $ | 240,499 |  |  | $ | 919,671 |  |  | $ | 22,639 |  |  | $ | 942,310 |
YTD Gross chargeoffs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 2,643 |  |  | $ | 1 |  |  | $ | 71 |  |  | $ | 2,715 |  |  | $ | 0 |  |  | $ | 2,715 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 325,304 |  |  | $ | 234,583 |  |  | $ | 255,964 |  |  | $ | 188,212 |  |  | $ | 101,663 |  |  | $ | 210,583 |  |  | $ | 1,316,309 |  |  | $ | 0 |  |  | $ | 1,316,309 |
Nonperforming |  | 243 |  |  | 917 |  |  | 2,584 |  |  | 3,496 |  |  | 2,160 |  |  | 7,965 |  |  | 17,365 |  |  | 0 |  |  | 17,365 |
Total |  | $ | 325,547 |  |  | $ | 235,500 |  |  | $ | 258,548 |  |  | $ | 191,708 |  |  | $ | 103,823 |  |  | $ | 218,548 |  |  | $ | 1,333,674 |  |  | $ | 0 |  |  | $ | 1,333,674 |
YTD Gross chargeoffs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 8 |  |  | $ | 1 |  |  | $ | 27 |  |  | $ | 3 |  |  | $ | 39 |  |  | $ | 0 |  |  | $ | 39 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 28,979 |  |  | $ | 23,175 |  |  | $ | 29,084 |  |  | $ | 32,917 |  |  | $ | 9,883 |  |  | $ | 22,419 |  |  | $ | 146,457 |  |  | $ | 606,183 |  |  | $ | 752,640 |
Nonperforming |  | 20 |  |  | 69 |  |  | 258 |  |  | 162 |  |  | 138 |  |  | 317 |  |  | 964 |  |  | 5,072 |  |  | 6,036 |
Total |  | $ | 28,999 |  |  | $ | 23,244 |  |  | $ | 29,342 |  |  | $ | 33,079 |  |  | $ | 10,021 |  |  | $ | 22,736 |  |  | $ | 147,421 |  |  | $ | 611,255 |  |  | $ | 758,676 |
YTD Gross chargeoffs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 7 |  |  | $ | 0 |  |  | $ | 174 |  |  | $ | 159 |  |  | $ | 340 |  |  | $ | 0 |  |  | $ | 340 |
Installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 16,026 |  |  | $ | 39,212 |  |  | $ | 22,961 |  |  | $ | 3,923 |  |  | $ | 1,691 |  |  | $ | 3,768 |  |  | $ | 87,581 |  |  | $ | 68,673 |  |  | $ | 156,254 |
Nonperforming |  | 196 |  |  | 1,142 |  |  | 742 |  |  | 12 |  |  | 12 |  |  | 30 |  |  | 2,134 |  |  | 690 |  |  | 2,824 |
Total |  | $ | 16,222 |  |  | $ | 40,354 |  |  | $ | 23,703 |  |  | $ | 3,935 |  |  | $ | 1,703 |  |  | $ | 3,798 |  |  | $ | 89,715 |  |  | $ | 69,363 |  |  | $ | 159,078 |
YTD Gross chargeoffs |  | $ | 168 |  |  | $ | 3,189 |  |  | $ | 2,903 |  |  | $ | 154 |  |  | $ | 5 |  |  | $ | 23 |  |  | $ | 6,442 |  |  | $ | 0 |  |  | $ | 6,442 |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 59,438 |  |  | $ | 59,438 |
Nonperforming |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 501 |  |  | 501 |
Total |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 59,939 |  |  | $ | 59,939 |
YTD Gross chargeoffs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,173 |  |  | $ | 1,173 |
Grand Total Loans |  | $ | 2,275,641 |  |  | $ | 2,255,789 |  |  | $ | 1,477,690 |  |  | $ | 951,457 |  |  | $ | 935,194 |  |  | $ | 1,407,027 |  |  | $ | 9,302,798 |  |  | $ | 1,630,378 |  |  | $ | 10,933,176 |
Grand Total YTD Gross Chargeoffs |  | $ | 178 |  |  | $ | 6,167 |  |  | $ | 15,467 |  |  | $ | 11,883 |  |  | $ | 1,143 |  |  | $ | 4,304 |  |  | $ | 39,142 |  |  | $ | 1,173 |  |  | $ | 40,315 |
The following table sets forth the Company's loan portfolio at December 31, 2022 by risk attribute and origination date:
(Dollars in thousands) |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Term Total |  | Revolving |  | Total
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 879,836 |  |  | $ | 561,890 |  |  | $ | 348,123 |  |  | $ | 209,758 |  |  | $ | 112,282 |  |  | $ | 206,656 |  |  | $ | 2,318,545 |  |  | $ | 971,080 |  |  | $ | 3,289,625 |
Special mention |  | 2,740 |  |  | 13,821 |  |  | 4,125 |  |  | 14,047 |  |  | 8,523 |  |  | 5,544 |  |  | 48,800 |  |  | 18,055 |  |  | 66,855 |
Substandard |  | 2,335 |  |  | 5,176 |  |  | 11,886 |  |  | 8,016 |  |  | 3,331 |  |  | 13,812 |  |  | 44,556 |  |  | 9,236 |  |  | 53,792 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 884,911 |  |  | $ | 580,887 |  |  | $ | 364,134 |  |  | $ | 231,821 |  |  | $ | 124,136 |  |  | $ | 226,012 |  |  | $ | 2,411,901 |  |  | $ | 998,371 |  |  | $ | 3,410,272 |
Lease financing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 167,035 |  |  | $ | 25,638 |  |  | $ | 13,705 |  |  | $ | 12,797 |  |  | $ | 9,402 |  |  | $ | 2,930 |  |  | $ | 231,507 |  |  | $ | 0 |  |  | $ | 231,507 |
Special mention |  | 0 |  | 0 |  | 70 |  | 0 |  | 0 |  | 0 |  | 70 |  | 0 |  | 70 |
Substandard |  | 4,363 |  | 0 |  | 0 |  | 164 |  | 11 |  | 9 |  | 4,547 |  | 0 |  | 4,547 |
Doubtful |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |
Total |  | $ | 171,398 |  |  | $ | 25,638 |  |  | $ | 13,775 |  |  | $ | 12,961 |  |  | $ | 9,413 |  |  | $ | 2,939 |  |  | $ | 236,124 |  |  | $ | 0 |  |  | $ | 236,124 |
Construction real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 89,116 |  |  | $ | 276,639 |  |  | $ | 96,823 |  |  | $ | 4,902 |  |  | $ | 390 |  |  | $ | 353 |  |  | $ | 468,223 |  |  | $ | 23,266 |  |  | $ | 491,489 |
Special mention |  | 0 |  |  | 14,395 |  |  | 0 |  |  | 0 |  |  | 6,166 |  |  | 0 |  |  | 20,561 |  |  | 0 |  |  | 20,561 |
Substandard |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 89,116 |  |  | $ | 291,034 |  |  | $ | 96,823 |  |  | $ | 4,902 |  |  | $ | 6,556 |  |  | $ | 353 |  |  | $ | 488,784 |  |  | $ | 23,266 |  |  | $ | 512,050 |
Commercial real estate - investor |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 643,174 |  |  | $ | 470,085 |  |  | $ | 301,510 |  |  | $ | 719,699 |  |  | $ | 300,772 |  |  | $ | 508,639 |  |  | $ | 2,943,879 |  |  | $ | 26,153 |  |  | $ | 2,970,032 |
Special mention |  | 0 |  |  | 13,090 |  |  | 23,111 |  |  | 9,297 |  |  | 26,079 |  |  | 13,804 |  |  | 85,381 |  |  | 861 |  |  | 86,242 |
Substandard |  | 0 |  |  | 6,950 |  |  | 6 |  |  | 4,025 |  |  | 17,178 |  |  | 9,631 |  |  | 37,790 |  |  | 0 |  |  | 37,790 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 643,174 |  |  | $ | 490,125 |  |  | $ | 324,627 |  |  | $ | 733,021 |  |  | $ | 344,029 |  |  | $ | 532,074 |  |  | $ | 3,067,050 |  |  | $ | 27,014 |  |  | $ | 3,094,064 |
Commercial real estate - owner |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 165,411 |  |  | $ | 155,041 |  |  | $ | 170,587 |  |  | $ | 101,137 |  |  | $ | 112,063 |  |  | $ | 211,377 |  |  | $ | 915,616 |  |  | $ | 11,125 |  |  | $ | 926,741 |
Special mention |  | 0 |  |  | 0 |  |  | 0 |  |  | 1,479 |  |  | 0 |  |  | 14,040 |  |  | 15,519 |  |  | 0 |  |  | 15,519 |
Substandard |  | 0 |  |  | 525 |  |  | 844 |  |  | 5,114 |  |  | 3,501 |  |  | 6,451 |  |  | 16,435 |  |  | 0 |  |  | 16,435 |
Doubtful |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 165,411 |  |  | $ | 155,566 |  |  | $ | 171,431 |  |  | $ | 107,730 |  |  | $ | 115,564 |  |  | $ | 231,868 |  |  | $ | 947,570 |  |  | $ | 11,125 |  |  | $ | 958,695 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 320,676 |  |  | $ | 274,816 |  |  | $ | 205,948 |  |  | $ | 110,745 |  |  | $ | 51,583 |  |  | $ | 114,642 |  |  | $ | 1,078,410 |  |  | $ | 0 |  |  | $ | 1,078,410 |
Nonperforming |  | 414 |  |  | 1,615 |  |  | 1,286 |  |  | 2,554 |  |  | 1,755 |  |  | 6,231 |  |  | 13,855 |  |  | 0 |  |  | 13,855 |
Total |  | $ | 321,090 |  |  | $ | 276,431 |  |  | $ | 207,234 |  |  | $ | 113,299 |  |  | $ | 53,338 |  |  | $ | 120,873 |  |  | $ | 1,092,265 |  |  | $ | 0 |  |  | $ | 1,092,265 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 26,411 |  |  | $ | 33,414 |  |  | $ | 38,226 |  |  | $ | 11,733 |  |  | $ | 8,051 |  |  | $ | 24,985 |  |  | $ | 142,820 |  |  | $ | 585,712 |  |  | $ | 728,532 |
Nonperforming |  | 5 |  |  | 136 |  |  | 298 |  |  | 78 |  |  | 104 |  |  | 430 |  |  | 1,051 |  |  | 4,208 |  |  | 5,259 |
Total |  | $ | 26,416 |  |  | $ | 33,550 |  |  | $ | 38,524 |  |  | $ | 11,811 |  |  | $ | 8,155 |  |  | $ | 25,415 |  |  | $ | 143,871 |  |  | $ | 589,920 |  |  | $ | 733,791 |
Installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 100,256 |  |  | $ | 38,694 |  |  | $ | 7,244 |  |  | $ | 3,915 |  |  | $ | 2,861 |  |  | $ | 3,242 |  |  | $ | 156,212 |  |  | $ | 51,854 |  |  | $ | 208,066 |
Nonperforming |  | 650 |  |  | 794 |  |  | 18 |  |  | 6 |  |  | 20 |  |  | 42 |  |  | 1,530 |  |  | 299 |  |  | 1,829 |
Total |  | $ | 100,906 |  |  | $ | 39,488 |  |  | $ | 7,262 |  |  | $ | 3,921 |  |  | $ | 2,881 |  |  | $ | 3,284 |  |  | $ | 157,742 |  |  | $ | 52,153 |  |  | $ | 209,895 |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 51,287 |  |  | $ | 51,287 |
Nonperforming |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 528 |  |  | 528 |
Total |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 51,815 |  |  | $ | 51,815 |
Grand Total |  | $ | 2,402,422 |  |  | $ | 1,892,719 |  |  | $ | 1,223,810 |  |  | $ | 1,219,466 |  |  | $ | 664,072 |  |  | $ | 1,142,818 |  |  | $ | 8,545,307 |  |  | $ | 1,753,664 |  |  | $ | 10,298,971 |
Delinquency. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loan delinquency, including nonaccrual loans, was as follows:
|  | As of December 31, 2023
(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 |  | $ | 1,717 |  |  | $ | 733 |  |  | $ | 4,822 |  |  | $ | 7,272 |  |  | $ | 3,493,949 |  |  | $ | 3,501,221 |  |  | $ | 376 |
Lease financing |  | 790 |  |  | 1,028 |  |  | 4,224 |  |  | 6,042 |  |  | 468,775 |  |  | 474,817 |  |  | 1,151 |
Construction real estate |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 564,832 |  |  | 564,832 |  |  | 0 |
Commercial real estate-investor |  | 19 |  |  | 16,455 |  |  | 6,238 |  |  | 22,712 |  |  | 3,115,917 |  |  | 3,138,629 |  |  | 0 |
Commercial real estate-owner |  | 269 |  |  | 205 |  |  | 5,290 |  |  | 5,764 |  |  | 936,546 |  |  | 942,310 |  |  | 0 |
Residential real estate |  | 4,786 |  |  | 1,929 |  |  | 3,744 |  |  | 10,459 |  |  | 1,323,215 |  |  | 1,333,674 |  |  | 0 |
Home equity |  | 1,998 |  |  | 1,082 |  |  | 1,919 |  |  | 4,999 |  |  | 753,677 |  |  | 758,676 |  |  | 0 |
Installment |  | 1,157 |  |  | 864 |  |  | 669 |  |  | 2,690 |  |  | 156,388 |  |  | 159,078 |  |  | 0 |
Credit card |  | 320 |  |  | 211 |  |  | 501 |  |  | 1,032 |  |  | 58,907 |  |  | 59,939 |  |  | 501 |
Total |  | $ | 11,056 |  |  | $ | 22,507 |  |  | $ | 27,407 |  |  | $ | 60,970 |  |  | $ | 10,872,206 |  |  | $ | 10,933,176 |  |  | $ | 2,028 |
|  | As of December 31, 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 |  | $ | 5,375 |  |  | $ | 72 |  |  | $ | 501 |  |  | $ | 5,948 |  |  | $ | 3,404,324 |  |  | $ | 3,410,272 |  |  | $ | 0 |
Lease financing |  | 5,212 |  |  | 1,052 |  |  | 843 |  |  | 7,107 |  |  | 229,017 |  |  | 236,124 |  |  | 742 |
Construction real estate |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 512,050 |  |  | 512,050 |  |  | 0 |
Commercial real estate-investor |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 3,094,064 |  |  | 3,094,064 |  |  | 0 |
Commercial real estate-owner |  | 26 |  |  | 5,216 |  |  | 44 |  |  | 5,286 |  |  | 953,409 |  |  | 958,695 |  |  | 0 |
Residential real estate |  | 4,254 |  |  | 2,074 |  |  | 3,260 |  |  | 9,588 |  |  | 1,082,677 |  |  | 1,092,265 |  |  | 0 |
Home equity |  | 1,725 |  |  | 729 |  |  | 1,209 |  |  | 3,663 |  |  | 730,128 |  |  | 733,791 |  |  | 0 |
Installment |  | 874 |  |  | 490 |  |  | 414 |  |  | 1,778 |  |  | 208,117 |  |  | 209,895 |  |  | 0 |
Credit card |  | 261 |  |  | 150 |  |  | 116 |  |  | 527 |  |  | 51,288 |  |  | 51,815 |  |  | 115 |
Total |  | $ | 17,727 |  |  | $ | 9,783 |  |  | $ | 6,387 |  |  | $ | 33,897 |  |  | $ | 10,265,074 |  |  | $ | 10,298,971 |  |  | $ | 857 |
Financial Difficulty Modifications. Effective January 1, 2023, First Financial prospectively adopted ASU 2022-02 which eliminated the accounting for TDRs while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties, defined by First Financial as FDMs. As such, effective with the adoption of the standard, the Company prospectively will not include FDMs in the calculation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included TDRs, has not been adjusted. FDM might result when a borrower is in financial distress, and may be in the form of principal forgiveness, an interest rate reduction, a term extension or an other-than-insignificant payment delay. In some cases, the Company might provide multiple types of modifications for a single loan. One type of modification, such as payment delay, may be granted initially, however, if the borrower continues to experience financial difficulty, another modification, such as term extension and/or interest rate reduction might be granted. Loans included in the "combination" column in the table that follows have more than one modification made to the same loan within the current reporting period. Additionally, modifications with a term extension or interest rate reduction are intended to reduce the borrower’s monthly payment, while modifications with a payment delay, which typically allow borrowers to make monthly payments, interest only payments for a period of time, are structured to cure the payment defaults by making delinquent payments due at maturity. Payment deferrals may be up to one year and have minimal financial impact since the deferred payments are paid at maturity. The following table provides the amortized cost basis of FDM that had a payment default during the year ended December 31, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty during the year by class and type of modification:
|  | Year ended December 31, 2023
(Dollars in thousands) |  | Principal forgiveness |  | Payment delay |  | Term extension |  | Interest rate reduction |  | Combination: Term extension and interest rate reduction |  | Total |  | Percent of total class of loans
Commercial & industrial |  | $ | 0 |  |  | $ | 1,181 |  |  | $ | 3,329 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 4,510 |  |  | 0.13 | %
Residential real estate |  | 0 |  |  | 1,889 |  |  | 96 |  |  | 0 |  |  | 55 |  |  | 2,040 |  |  | 0.15 | %
Home equity |  | 0 |  |  | 181 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 181 |  |  | 0.02 | %
Total |  | $ | 0 |  |  | $ | 3,251 |  |  | $ | 3,425 |  |  | $ | 0 |  |  | $ | 55 |  |  | $ | 6,731 |  |  | 0.06 | %
The following table provides the financial effect of FDM during the year ended December 31, 2023 by class of loans:
|  | Year ended December 31, 2023
(Dollars in thousands) |  | Principal forgiveness |  | Weighted average interest rate reduction |  | Weighted average term extension
Commercial & industrial |  | $ | 0 |  |  | 0.00 | % |  | 0.2 years
Residential real estate |  | 0 |  |  | 2.00 | % |  | 11.4 years
Total |  | $ | 0 |  |  | 2.00 | % |  | 0.7 years
. The Company has committed to lend no additional amounts to the borrowers who have been classified as FDM. Additionally, there were 18 FDMs with a balance of $4.4 million that defaulted during the year ended December 31, 2023. The Company closely monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified since the January 1, 2023 adoption date of ASU 2022-02:
|  | Payment status as of
|  | December 31, 2023
(Dollars in thousands) |  | Current |  | 30 – 59 days past due |  | 60 – 89 days past due |  | > 89 days past due |  | Total
Commercial & industrial |  | $ | 1,181 |  |  | $ | 821 |  |  | $ | 0 |  |  | $ | 2,508 |  |  | $ | 4,510 |
Residential real estate |  | 1,021 |  |  | 500 |  |  | 240 |  |  | 279 |  |  | 2,040 |
Home equity |  | 111 |  |  | 70 |  |  | 0 |  |  | 0 |  |  | 181 |
Total |  | $ | 2,313 |  |  | $ | 1,391 |  |  | $ | 240 |  |  | $ | 2,787 |  |  | $ | 6,731 |
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. Nonperforming loans. Effective January 1, 2023, loans classified as nonaccrual are considered nonperforming. Prior to the adoption of ASU 2022-02, nonperforming loans included nonaccrual loans as well as TDRs. First Financial individually reviews all nonperforming loan relationships greater than $250,000 to determine if a specific reserve is required based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Specific reserves are based on discounted cash flows using the loan's initial effective interest rate or the fair value of the collateral for certain collateral dependent loans. The following table provides information on nonperforming loans as of December 31:
|  | 2023 |  | 2022 |  | 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 with a related ACL |  | Nonaccrual loans with no related ACL |  | Total nonaccrual
Nonaccrual loans (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial |  | $ | 3,329 |  |  | $ | 12,417 |  |  | $ | 15,746 |  |  | $ | 6,692 |  |  | $ | 1,550 |  |  | $ | 8,242 |  |  | $ | 11,077 |  |  | $ | 6,285 |  |  | $ | 17,362 |
Lease financing |  | 1,505 |  |  | 2,105 |  |  | 3,610 |  |  | 0 |  |  | 178 |  |  | 178 |  |  | 0 |  |  | 203 |  |  | 203 |
Construction real estate |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Commercial real estate |  | 16,356 |  |  | 11,628 |  |  | 27,984 |  |  | 5,216 |  |  | 570 |  |  | 5,786 |  |  | 17,716 |  |  | 1,796 |  |  | 19,512 |
Residential real estate |  | 0 |  |  | 14,067 |  |  | 14,067 |  |  | 0 |  |  | 10,691 |  |  | 10,691 |  |  | 0 |  |  | 8,305 |  |  | 8,305 |
Home equity |  | 0 |  |  | 3,476 |  |  | 3,476 |  |  | 0 |  |  | 3,123 |  |  | 3,123 |  |  | 0 |  |  | 2,922 |  |  | 2,922 |
Installment |  | 0 |  |  | 870 |  |  | 870 |  |  | 0 |  |  | 603 |  |  | 603 |  |  | 0 |  |  | 88 |  |  | 88 |
Total nonaccrual loans |  | $ | 21,190 |  |  | $ | 44,563 |  |  | $ | 65,753 |  |  | $ | 11,908 |  |  | $ | 16,715 |  |  | $ | 28,623 |  |  | $ | 28,793 |  |  | $ | 19,599 |  |  | $ | 48,392 |
Interest income effect |  |  |  |  |  |  |  |  |  |  |  |  |  | 2023 |  | 2022 |  | 2021
Gross amount of interest that would have been recorded under original terms |  |  |  |  |  | $ | 5,694 |  |  | $ | 3,247 |  |  | $ | 5,132 |
Interest included in income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonaccrual loans |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,673 |  |  | 1,134 |  |  | 1,618 |
Troubled debt restructurings |  |  |  |  |  |  |  |  |  |  |  | 0 |  |  | 424 |  |  | 314 |
Total interest included in income |  |  |  |  |  |  |  |  |  |  |  | 1,673 |  |  | 1,558 |  |  | 1,932 |
Net impact on interest income |  |  |  |  |  |  |  |  |  |  |  | $ | 4,021 |  |  | $ | 1,689 |  |  | $ | 3,200 |
Commitments outstanding to borrowers with nonaccrual loans |  |  |  |  |  |  |  |  |  |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
(1) Nonaccrual loans include nonaccrual TDRs of $10.0 million and $16.0 million as of December 31, 2022 and 2021, respectively. 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.
|  | December 31, 2023
|  | Type of Collateral
(Dollar in thousands) |  | Business assets |  | Commercial real estate |  | Equipment |  | Land |  | Residential real estate |  | Other |  | Total
Class of loan |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial |  | $ | 10,952 |  |  | $ | 0 |  |  | $ | 3,869 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 925 |  |  | $ | 15,746 |
Lease financing |  | 0 |  | 0 |  |  | 3,610 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 3,610 |
Commercial real estate-investor |  | 0 |  | 22,694 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 22,694 |
Commercial real estate-owner |  | 0 |  | 3,397 |  |  | 1,893 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 5,290 |
Residential real estate |  | 0 |  | 0 |  |  | 0 |  |  | 0 |  |  | 14,067 |  |  | 0 |  |  | 14,067 |
Home equity |  | 0 |  | 0 |  | 0 |  | 0 |  | 3,476 |  |  | 0 |  | 3,476 |
Installment |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 870 |  | 870 |
Total |  | $ | 10,952 |  | 10952000 | $ | 26,091 |  |  | $ | 9,372 |  |  | $ | 0 |  |  | $ | 17,543 |  |  | $ | 1,795 |  |  | $ | 65,753 |
|  | December 31, 2022
|  | Type of Collateral
(Dollar in thousands) |  | Business assets |  | Commercial real estate |  | Equipment |  | Land |  | Residential real estate |  | Other |  | Total
Class of loan |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial |  | $ | 8,205 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 37 |  |  | $ | 8,242 |
Lease financing |  | 0 |  | 0 |  | 178 |  | 0 |  | 0 |  | 0 |  | 178 |
Commercial real estate-investor |  | 0 |  | 353 |  | 0 |  | 0 |  | 22 |  | 0 |  | 375 |
Commercial real estate-owner |  | 0 |  | 3,399 |  | 1,893 |  | 119 |  | 0 |  | 0 |  | 5,411 |
Residential real estate |  | 0 |  | 0 |  | 0 |  | 0 |  | 10,691 |  | 0 |  | 10,691 |
Home equity |  | 0 |  | 0 |  | 0 |  | 0 |  | 3,123 |  | 0 |  | 3,123 |
Installment |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 603 |  | 603 |
Total |  | $ | 8,205 |  |  | $ | 3,752 |  |  | $ | 2,071 |  |  | $ | 119 |  |  | $ | 13,836 |  |  | $ | 640 |  |  | $ | 28,623 |
Lease financing - Lessor. First Financial originates both sales-type and direct financing leases, and the Company manages and reviews lease residuals in accordance with its credit policies. Payments are generally fixed, however, in some agreements, lease payments may be indexed. Sales-type lease contracts contain the ability to purchase the underlying equipment at lease maturity and profit or loss is recognized at lease commencement. Direct financing leases are generally three to five years in length and may be extended at maturity, however, early cancellation may result in a fee to the borrower. For direct financing leases, the net unearned income is deferred and amortized over the life of the lease. The components of the Company's net investments in direct financing and sales-type leases, which are included in Lease financing on the Consolidated Balance Sheets are as follows:
(Dollar in thousands) |  | December 31, 2023 |  | December 31, 2022
Direct financing leases |  |  |  |
Lease receivables |  | $ | 16,272 |  |  | $ | 35,081 |
Unguaranteed residual values |  | 11,402 |  |  | 16,058 |
Sales-type leases |  |  |  |
Lease receivables |  | 444,144 |  |  | 184,985 |
Unguaranteed residual values |  | 2,999 |  |  | 0 |
Total net investment in direct financing and sales-type leases |  | $ | 474,817 |  |  | $ | 236,124 |
Interest income for direct financing and sales-type leases was $25.2 million, $11.8 million and $2.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. The remaining maturities of lease receivables were as follows:
(Dollars in thousands) |  | Direct financing and Sales-type
2024 |  | $ | 139,108 |
2025 |  | 129,796 |
2026 |  | 109,181 |
2027 |  | 82,552 |
2028 |  | 38,694 |
Thereafter |  | 30,422 |
Total lease payments |  | 529,753 |
Less: unearned interest income |  | (69,337) |
Net lease receivables |  | $ | 460,416 |
OREO. OREO is comprised of properties acquired by the Company primarily through the loan foreclosure or repossession process, that result in partial or total satisfaction of problem loans. Changes in OREO were as follows:
|  | Years ended December 31,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2021
Balance at beginning of year |  | $ | 191 |  |  | $ | 98 |  |  | $ | 1,287 |
Additions |  |  |  |  |  |
Commercial real estate |  | 0 |  |  | 0 |  |  | 98 |
Residential real estate |  | 387 |  |  | 327 |  |  | 0 |
Total additions |  | 387 |  |  | 327 |  |  | 98 |
Disposals |  |  |  |  |  |
Commercial real estate |  | 0 |  |  | (98) |  |  | (947) |
Residential real estate |  | (288) |  |  | (94) |  |  | (331) |
Total disposals |  | (288) |  |  | (192) |  |  | (1,278) |
Valuation adjustments |  |  |  |  |  |
Commercial real estate |  | 0 |  |  | 0 |  |  | (9) |
Residential real estate |  | (184) |  |  | (42) |  |  | 0 |
Total valuation adjustments |  | (184) |  |  | (42) |  |  | (9) |
Balance at end of year |  | $ | 106 |  |  | $ | 191 |  |  | $ | 98 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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