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BORROWINGS | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
BORROWINGS | BORROWINGS Short-term borrowings, or borrowings that mature in less than one year, on the Consolidated Balance Sheets include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, federal funds purchased, overnight advances from the FHLB and a short-term line of credit. All repurchase agreements are subject to terms and conditions agreed to by the Bank and the client. To secure its liability to the client, the Bank is authorized to sell or repurchase U.S. Treasury, government agency and mortgage-backed securities. As of both September 30, 2025 and December 31, 2024, the Bank had no securities sold under agreements to repurchase. The Company had $550.0 million and $625.0 million in short-term borrowings with the FHLB at September 30, 2025 and December 31, 2024, respectively. These short-term borrowings are used to manage normal liquidity needs and support the Company's asset and liability management strategies. Additionally, at September 30, 2025 and December 31, 2024, other short- term borrowings included $45.2 million and $130.5 million, respectively, of collateral owed to counterparty banks by First Financial. First Financial had no federal funds purchased at September 30, 2025 or December 31, 2024. First Financial also has a $40.0 million short-term credit facility with an unaffiliated bank that matures in December 2025, which is included in short-term borrowings. This facility has a variable interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of both September 30, 2025 and December 31, 2024, First Financial had no outstanding balance on this facility. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of both September 30, 2025 and December 31, 2024. This credit facility also required First Financial to pledge as collateral the Bank's common stock where the lender is granted a security interest in this collateral. The following is a summary of First Financial's short-term borrowings:
(Dollars in thousands) |  | September 30, 2025 |  | December 31, 2024
FHLB short-term borrowings |  | $ | 550,000 |  |  | $ | 625,000 |
Other short-term borrowings |  | 45,167 |  |  | 130,452 |
Total short-term borrowings |  | $ | 595,167 |  |  | $ | 755,452 |
First Financial had $221.8 million and $347.5 million of long-term debt as of September 30, 2025 and December 31, 2024 respectively, which included subordinated notes, capital lease liabilities and an interest free loan with a municipality. The following is a summary of First Financial's long-term debt:
|  | September 30, 2025 |  | December 31, 2024
(Dollars in thousands) |  | Amount |  | Average rate |  | Amount |  | Average rate
Subordinated notes |  | $ | 194,962 |  |  | 8.66 | % |  | $ | 314,619 |  |  | 5.43 | %
Unamortized debt issuance costs |  | (953) |  |  | N/A |  | (1,227) |  |  | N/A
Notes issued in conjunction with acquisition of property and equipment |  | 25,865 |  |  | 5.30 | % |  | 31,822 |  |  | 4.95 | %
Capital lease liability |  | 1,174 |  |  | 4.41 | % |  | 1,520 |  |  | 3.85 | %
Capital loan with municipality |  | 775 |  |  | 0.00 | % |  | 775 |  |  | 0.00 | %
Total long-term debt |  | $ | 221,823 |  |  | 8.25 | % |  | $ | 347,509 |  |  | 5.39 | %
In 2015, First Financial issued $120.0 million of subordinated notes, which had a fixed interest rate of 5.13% payable semiannually and matured in August 2025. The matured notes were redeemed and therefore are no longer included in the Consolidated Balance Sheets as of September 30, 2025. In April 2020, First Financial issued $150.0 million of fixed to floating rate subordinated notes. These subordinated notes had an initial fixed interest rate of 5.25% to, but excluding, May 15, 2025, payable semi-annually in arrears. From, and including, May 15, 2025, the interest rate on the subordinated notes reset quarterly to a floating rate per annum equal to a benchmark rate, currently the three-month term SOFR, plus 509 basis points, payable quarterly in arrears. As of September 30, 2025, the interest rate was 9.30%. The subordinated notes mature on May 15, 2030. These notes became redeemable by the Company in whole or in part beginning with the interest payment date of May 15, 2025. Subordinated notes are included in Long-term debt on the Consolidated Balance Sheets and treated as Tier 2 capital for regulatory capital purposes, subject to certain limitations. When subordinated notes are within five years of maturity, the tier 2 capital eligibility reduces by 20% each year. This subordinated debt issued in April 2020 that matures in May 2030 is eligible to be treated as Tier 2 capital for 80% of its original issuance amount at September 30, 2025 for regulatory capital purposes. In addition, First Financial acquired $49.5 million of variable rate subordinated notes in the MSFG merger that were issued to previously formed trusts in exchange for the trust proceeds. These notes were recorded at fair value at the date of the MSFG merger and the Consolidated Balance Sheets include $45.0 million and $44.6 million for these notes at September 30, 2025 and December 31, 2024, respectively. Interest on the acquired subordinated notes is payable quarterly, in arrears, and the Company has the option to defer interest payments for a period not to exceed 20 consecutive quarters. These acquired subordinated notes mature 30 years after the date of original issuance and may be called at par following the 5 year anniversary of issuance. The original issue dates for these variable rate subordinated notes ranged from December 2002 to June 2007, and have maturity dates ranging from December 2032 to June 2037. These variable rate subordinated notes are callable as of September 30, 2025 and are treated as Tier 1 capital for regulatory capital purposes. Additionally, long-term borrowings included $25.9 million and $31.8 million of term notes, both with and without recourse, with an average interest rate of 5.30% and 4.95% at September 30, 2025 and December 31, 2024, respectively. These term notes were used to finance equity investments in the purchase of equipment to be leased to customers.

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