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LEASES | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Lessee, Operating Leases | LEASES - LESSEE A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. For contracts where First Financial is a lessee, the recipient of the right to control, substantially all of those agreements are for real estate property for branches, ATM locations and office space. Substantially all of the Company's lessee contracts are classified as operating leases. Under Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as an ROU asset and a corresponding lease liability. The Company's right to use an asset over the life of a lease is recorded as an ROU asset in Accrued interest and other assets on the Consolidated Balance Sheets and was $45.9 million and $49.9 million at September 30, 2025 and December 31, 2024, respectively. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. First Financial recorded a $55.4 million and $59.8 million lease liability in Accrued interest and other liabilities on the Consolidated Balance Sheets at September 30, 2025 and December 31, 2024, respectively. First Financial has operating and finance leases for land, office space and banking centers. These leases are generally for periods of 5 to 30 years with various renewal options. Certain renewal options are included in the measurement of the ROU assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. The Company has elected not to recognize short-term leases (terms of one year or less) as lease liabilities and right-of use assets; related expenses are recognized on a straight-line basis over the lease term. Additionally, the Company has elected to apply the risk-free discount rate for leases in which there is no implicit discount rate. First Financial has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. First Financial does not have any material sub-lease agreements. The components of lease expense were as follows:
|  | Three months ended |  | Nine months ended
|  | September 30, |  | September 30,
(Dollars in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost |  | $ | 1,988 |  |  | $ | 2,010 |  |  | $ | 5,996 |  |  | $ | 6,088 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | 25 |  |  | 27 |  |  | 76 |  |  | 82 |
Interest on lease liabilities |  | 13 |  |  | 14 |  |  | 40 |  |  | 44 |
Variable lease cost |  | 759 |  |  | 419 |  |  | 2,279 |  |  | 1,956 |
Total lease cost |  | $ | 2,785 |  |  | $ | 2,470 |  |  | $ | 8,391 |  |  | $ | 8,170 |
Future minimum commitments due under these lease agreements as of September 30, 2025 are as follows:
(Dollars in thousands) |  | Operating leases |  | Finance leases |  |
2025 (remaining three months) |  | $ | 2,051 |  |  | $ | 37 |  |  |
2026 |  | 8,042 |  |  | 152 |  |  |
2027 |  | 7,668 |  |  | 155 |  |  |
2028 |  | 7,552 |  |  | 159 |  |  |
2029 |  | 7,100 |  |  | 160 |  |  |
Thereafter |  | 36,365 |  |  | 807 |  |  |
Total lease payments |  | 68,778 |  |  | 1,470 |  |  |
Less imputed interest |  | (13,359) |  |  | (296) |  |  |
Total |  | $ | 55,419 |  |  | $ | 1,174 |  |  |
Supplemental balance sheet information related to leases was as follows:
(Dollars in thousands) |  | September 30, 2025 |  | December 31, 2024
Operating leases |  |  |  |
Operating lease right-of-use assets |  | $ | 45,850 |  |  | $ | 49,895 |
Operating lease liabilities |  | 55,419 |  |  | 59,801 |
Finance leases |  |  |  |
Premises and equipment |  | $ | 935 |  |  | $ | 1,284 |
Long-term debt |  | 1,174 |  |  | 1,520 |
Weighted-average remaining lease term |  |  |  |
Operating leases |  | 11.2 years |  | 11.5 years
Finance leases |  | 10.4 years |  | 11.8 years
Weighted-average discount rate |  |  |  |
Operating leases |  | 3.50 | % |  | 3.48 | %
Finance leases |  | 4.41 | % |  | 3.85 | %
Supplemental cash flow information at September 30, 2025 and 2024 related to leases was as follows:
|  | Three months ended |  | Nine months ended
|  | September 30, |  | September 30,
(Dollars in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 2,121 |  |  | $ | 2,095 |  |  | $ | 6,338 |  |  | $ | 6,338 |
Operating cash flows from finance leases |  | 13 |  |  | 14 |  |  | 40 |  |  | 44 |
Financing cash flows from finance leases |  | 25 |  |  | 23 |  |  | 73 |  |  | 68 |
ROU assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |
Operating leases |  | 0 |  |  | (46) |  |  | 399 |  |  | 1,713 |
Finance leases |  | 0 |  |  | 0 |  | (272) |  |  | 0

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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