OPERATING LEASES

3 Months Ended

Mar. 31, 2025

OPERATING LEASES - LESSOR

First Financial provides financing for various types of equipment through a variety of leasing arrangements. Operating leases are carried at cost less accumulated depreciation in the Consolidated Balance Sheets. Operating leases were $213.6 million and $209.1 million at March 31, 2025 and December 31, 2024, respectively, net of accumulated depreciation of $125.9 million and $93.6 million, respectively. The Company recorded lease income of $17.9 million and $12.1 million related to lease payments

for operating leases in Leasing business income in the Consolidated Statements of Income for the three months ended March 31, 2025 and 2024, respectively. Depreciation expense related to operating lease equipment was $12.8 million and $9.8 million for the three months ended March 31, 2025 and 2024, respectively. Depreciation expense related to operating lease equipment is included in Leasing business expense in the Consolidated Statements of Income.

First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. First Financial recognized no impairment losses associated with operating lease assets for the three months ended March 31, 2025 or 2024. Recognized impairment losses, if any, would be recorded in Leasing business income in the Consolidated Statements of Income.

The future lease payments receivable from operating leases as of March 31, 2025 are as follows:


(Dollars in thousands)	Undiscounted cash flows
2025 (remaining nine months)	$	47,679
2026	54,206
2027	37,749
2028	20,373
2029	10,843
Thereafter	3,944
Total operating lease payments	$	174,794