0000714562 12/31 10-Q 2021 Q3 FALSE One First Financial Plaza Terre Haute IN 0.125 0.125 40,000,000 40,000,000 16,096,313 16,075,154 13,048,229 13,558,511 3,048,084 2,516,643 497,000—531,441 46,989————1.6 1.8 3.05 5.50 5.00 20.00—50.00 3.05 5.50 5.00 20.00—50.00 0000714562 2021-01-01 2021-09-30 xbrli:shares 0000714562 2021-11-01 iso4217:USD 0000714562 2021-09-30 0000714562 2020-12-31 iso4217:USD xbrli:shares 0000714562 2021-07-01 2021-09-30 0000714562 2020-07-01 2020-09-30 0000714562 2020-01-01 2020-09-30 0000714562 us-gaap:CommonStockMember 2020-06-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000714562 us-gaap:RetainedEarningsMember 2020-06-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000714562 us-gaap:TreasuryStockMember 2020-06-30 0000714562 2020-06-30 0000714562 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0000714562 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0000714562 us-gaap:TreasuryStockMember 2020-07-01 2020-09-30 0000714562 us-gaap:CommonStockMember 2020-09-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0000714562 us-gaap:RetainedEarningsMember 2020-09-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0000714562 us-gaap:TreasuryStockMember 2020-09-30 0000714562 2020-09-30 0000714562 us-gaap:CommonStockMember 2021-06-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0000714562 us-gaap:RetainedEarningsMember 2021-06-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0000714562 us-gaap:TreasuryStockMember 2021-06-30 0000714562 2021-06-30 0000714562 us-gaap:CommonStockMember 2021-07-01 2021-09-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0000714562 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0000714562 us-gaap:TreasuryStockMember 2021-07-01 2021-09-30 0000714562 us-gaap:CommonStockMember 2021-09-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0000714562 us-gaap:RetainedEarningsMember 2021-09-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-09-30 0000714562 us-gaap:TreasuryStockMember 2021-09-30 0000714562 us-gaap:CommonStockMember 2019-12-31 0000714562 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000714562 us-gaap:RetainedEarningsMember 2019-12-31 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000714562 us-gaap:TreasuryStockMember 2019-12-31 0000714562 2019-12-31 0000714562 us-gaap:CommonStockMember 2020-01-01 2020-09-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-09-30 0000714562 us-gaap:RetainedEarningsMember 2020-01-01 2020-09-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0000714562 us-gaap:TreasuryStockMember 2020-01-01 2020-09-30 0000714562 us-gaap:CommonStockMember 2020-12-31 0000714562 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0000714562 us-gaap:RetainedEarningsMember 2020-12-31 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0000714562 us-gaap:TreasuryStockMember 2020-12-31 0000714562 us-gaap:CommonStockMember 2021-01-01 2021-09-30 0000714562 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-09-30 0000714562 us-gaap:RetainedEarningsMember 2021-01-01 2021-09-30 0000714562 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-09-30 0000714562 us-gaap:TreasuryStockMember 2021-01-01 2021-09-30 thff:segment xbrli:pure 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-06-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-06-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-06-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2021-06-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2021-07-01 2021-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-09-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2021-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-06-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-06-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-06-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2020-06-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2020-07-01 2020-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-09-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2020-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-12-31 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-12-31 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-12-31 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2020-12-31 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2021-01-01 2021-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2019-12-31 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2019-12-31 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2019-12-31 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:UnallocatedFinancingReceivablesMember 2020-01-01 2020-09-30 0000714562 thff:CommercialAndIndustrialReceivablesMember 2020-07-01 2020-09-30 0000714562 thff:CommercialAndIndustrialReceivablesMember 2020-01-01 2020-09-30 0000714562 thff:FarmlandMember 2020-07-01 2020-09-30 0000714562 thff:FarmlandMember 2020-01-01 2020-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember 2020-07-01 2020-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember 2020-01-01 2020-09-30 0000714562 thff:AgricultureReceivablesMember 2020-07-01 2020-09-30 0000714562 thff:AgricultureReceivablesMember 2020-01-01 2020-09-30 0000714562 thff:OtherCommercialReceivablesMember 2020-07-01 2020-09-30 0000714562 thff:OtherCommercialReceivablesMember 2020-01-01 2020-09-30 0000714562 us-gaap:FirstMortgageMember 2020-07-01 2020-09-30 0000714562 us-gaap:FirstMortgageMember 2020-01-01 2020-09-30 0000714562 us-gaap:HomeEquityMember 2020-07-01 2020-09-30 0000714562 us-gaap:HomeEquityMember 2020-01-01 2020-09-30 0000714562 us-gaap:SecondMortgageMember 2020-07-01 2020-09-30 0000714562 us-gaap:SecondMortgageMember 2020-01-01 2020-09-30 0000714562 srt:MultifamilyMember 2020-07-01 2020-09-30 0000714562 srt:MultifamilyMember 2020-01-01 2020-09-30 0000714562 thff:OtherResidentialReceivablesMember 2020-07-01 2020-09-30 0000714562 thff:OtherResidentialReceivablesMember 2020-01-01 2020-09-30 0000714562 us-gaap:AutomobileLoanMember 2020-07-01 2020-09-30 0000714562 us-gaap:AutomobileLoanMember 2020-01-01 2020-09-30 0000714562 thff:OtherConsumerReceivablesMember 2020-07-01 2020-09-30 0000714562 thff:OtherConsumerReceivablesMember 2020-01-01 2020-09-30 0000714562 thff:CommercialAndIndustrialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 thff:FarmlandMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 thff:AgricultureReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 thff:OtherCommercialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 us-gaap:FirstMortgageMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 us-gaap:HomeEquityMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 us-gaap:SecondMortgageMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 srt:MultifamilyMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 thff:OtherResidentialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 us-gaap:AutomobileLoanMember us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 us-gaap:NonperformingFinancingReceivableMember thff:OtherConsumerReceivablesMember 2021-09-30 0000714562 us-gaap:NonperformingFinancingReceivableMember 2021-09-30 0000714562 thff:CommercialAndIndustrialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 thff:FarmlandMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 thff:AgricultureReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 thff:OtherCommercialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 us-gaap:FirstMortgageMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 us-gaap:HomeEquityMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 us-gaap:SecondMortgageMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 srt:MultifamilyMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 thff:OtherResidentialReceivablesMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 us-gaap:AutomobileLoanMember us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 us-gaap:NonperformingFinancingReceivableMember thff:OtherConsumerReceivablesMember 2020-12-31 0000714562 us-gaap:NonperformingFinancingReceivableMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember thff:CommercialAndIndustrialReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember thff:CommercialAndIndustrialReceivablesMember 2021-09-30 0000714562 thff:CommercialAndIndustrialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancialAssetPastDueMember thff:CommercialAndIndustrialReceivablesMember 2021-09-30 0000714562 us-gaap:FinancialAssetNotPastDueMember thff:CommercialAndIndustrialReceivablesMember 2021-09-30 0000714562 thff:CommercialAndIndustrialReceivablesMember 2021-09-30 0000714562 thff:FarmlandMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-09-30 0000714562 thff:FarmlandMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-09-30 0000714562 thff:FarmlandMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 thff:FarmlandMember us-gaap:FinancialAssetPastDueMember 2021-09-30 0000714562 thff:FarmlandMember us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 thff:FarmlandMember 2021-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancialAssetPastDueMember 2021-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 thff:NonFarmNonResidentialReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember thff:AgricultureReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember thff:AgricultureReceivablesMember 2021-09-30 0000714562 thff:AgricultureReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancialAssetPastDueMember thff:AgricultureReceivablesMember 2021-09-30 0000714562 us-gaap:FinancialAssetNotPastDueMember thff:AgricultureReceivablesMember 2021-09-30 0000714562 thff:AgricultureReceivablesMember 2021-09-30 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-09-30 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-09-30 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancialAssetPastDueMember 2021-09-30 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 thff:OtherCommercialReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:FirstMortgageMember 2021-09-30 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:FirstMortgageMember 2021-09-30 0000714562 us-gaap:FirstMortgageMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancialAssetPastDueMember us-gaap:FirstMortgageMember 2021-09-30 0000714562 us-gaap:FinancialAssetNotPastDueMember us-gaap:FirstMortgageMember 2021-09-30 0000714562 us-gaap:FirstMortgageMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:HomeEquityMember 2021-09-30 0000714562 us-gaap:HomeEquityMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-09-30 0000714562 us-gaap:HomeEquityMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:HomeEquityMember us-gaap:FinancialAssetPastDueMember 2021-09-30 0000714562 us-gaap:HomeEquityMember us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 us-gaap:HomeEquityMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:SecondMortgageMember 2021-09-30 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:SecondMortgageMember 2021-09-30 0000714562 us-gaap:SecondMortgageMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancialAssetPastDueMember us-gaap:SecondMortgageMember 2021-09-30 0000714562 us-gaap:FinancialAssetNotPastDueMember us-gaap:SecondMortgageMember 2021-09-30 0000714562 us-gaap:SecondMortgageMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember srt:MultifamilyMember 2021-09-30 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember srt:MultifamilyMember 2021-09-30 0000714562 srt:MultifamilyMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancialAssetPastDueMember srt:MultifamilyMember 2021-09-30 0000714562 srt:MultifamilyMember us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 srt:MultifamilyMember 2021-09-30 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-09-30 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-09-30 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancialAssetPastDueMember 2021-09-30 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 thff:OtherResidentialReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:AutomobileLoanMember 2021-09-30 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-09-30 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancialAssetPastDueMember 2021-09-30 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 us-gaap:AutomobileLoanMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember thff:OtherConsumerReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember thff:OtherConsumerReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember thff:OtherConsumerReceivablesMember 2021-09-30 0000714562 us-gaap:FinancialAssetPastDueMember thff:OtherConsumerReceivablesMember 2021-09-30 0000714562 us-gaap:FinancialAssetNotPastDueMember thff:OtherConsumerReceivablesMember 2021-09-30 0000714562 thff:OtherConsumerReceivablesMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2021-09-30 0000714562 us-gaap:FinancialAssetPastDueMember 2021-09-30 0000714562 us-gaap:FinancialAssetNotPastDueMember 2021-09-30 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember thff:CommercialAndIndustrialReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember thff:CommercialAndIndustrialReceivablesMember 2020-12-31 0000714562 thff:CommercialAndIndustrialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancialAssetPastDueMember thff:CommercialAndIndustrialReceivablesMember 2020-12-31 0000714562 us-gaap:FinancialAssetNotPastDueMember thff:CommercialAndIndustrialReceivablesMember 2020-12-31 0000714562 thff:CommercialAndIndustrialReceivablesMember 2020-12-31 0000714562 thff:FarmlandMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2020-12-31 0000714562 thff:FarmlandMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0000714562 thff:FarmlandMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 thff:FarmlandMember us-gaap:FinancialAssetPastDueMember 2020-12-31 0000714562 thff:FarmlandMember us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 thff:FarmlandMember 2020-12-31 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2020-12-31 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancialAssetPastDueMember 2020-12-31 0000714562 thff:NonFarmNonResidentialReceivablesMember us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 thff:NonFarmNonResidentialReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember thff:AgricultureReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember thff:AgricultureReceivablesMember 2020-12-31 0000714562 thff:AgricultureReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancialAssetPastDueMember thff:AgricultureReceivablesMember 2020-12-31 0000714562 us-gaap:FinancialAssetNotPastDueMember thff:AgricultureReceivablesMember 2020-12-31 0000714562 thff:AgricultureReceivablesMember 2020-12-31 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2020-12-31 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancialAssetPastDueMember 2020-12-31 0000714562 thff:OtherCommercialReceivablesMember us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 thff:OtherCommercialReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:FirstMortgageMember 2020-12-31 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:FirstMortgageMember 2020-12-31 0000714562 us-gaap:FirstMortgageMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancialAssetPastDueMember us-gaap:FirstMortgageMember 2020-12-31 0000714562 us-gaap:FinancialAssetNotPastDueMember us-gaap:FirstMortgageMember 2020-12-31 0000714562 us-gaap:FirstMortgageMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:HomeEquityMember 2020-12-31 0000714562 us-gaap:HomeEquityMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0000714562 us-gaap:HomeEquityMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:HomeEquityMember us-gaap:FinancialAssetPastDueMember 2020-12-31 0000714562 us-gaap:HomeEquityMember us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 us-gaap:HomeEquityMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:SecondMortgageMember 2020-12-31 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember us-gaap:SecondMortgageMember 2020-12-31 0000714562 us-gaap:SecondMortgageMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancialAssetPastDueMember us-gaap:SecondMortgageMember 2020-12-31 0000714562 us-gaap:FinancialAssetNotPastDueMember us-gaap:SecondMortgageMember 2020-12-31 0000714562 us-gaap:SecondMortgageMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember srt:MultifamilyMember 2020-12-31 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember srt:MultifamilyMember 2020-12-31 0000714562 srt:MultifamilyMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancialAssetPastDueMember srt:MultifamilyMember 2020-12-31 0000714562 srt:MultifamilyMember us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 srt:MultifamilyMember 2020-12-31 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2020-12-31 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancialAssetPastDueMember 2020-12-31 0000714562 thff:OtherResidentialReceivablesMember us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 thff:OtherResidentialReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember us-gaap:AutomobileLoanMember 2020-12-31 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancialAssetPastDueMember 2020-12-31 0000714562 us-gaap:AutomobileLoanMember us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 us-gaap:AutomobileLoanMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember thff:OtherConsumerReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember thff:OtherConsumerReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember thff:OtherConsumerReceivablesMember 2020-12-31 0000714562 us-gaap:FinancialAssetPastDueMember thff:OtherConsumerReceivablesMember 2020-12-31 0000714562 us-gaap:FinancialAssetNotPastDueMember thff:OtherConsumerReceivablesMember 2020-12-31 0000714562 thff:OtherConsumerReceivablesMember 2020-12-31 0000714562 us-gaap:FinancingReceivables30To59DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancingReceivables60To89DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-12-31 0000714562 us-gaap:FinancialAssetPastDueMember 2020-12-31 0000714562 us-gaap:FinancialAssetNotPastDueMember 2020-12-31 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-06-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-06-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-06-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-12-31 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-12-31 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-12-31 0000714562 us-gaap:CommercialPortfolioSegmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-06-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-06-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-06-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-09-30 0000714562 us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2019-12-31 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2019-12-31 0000714562 us-gaap:CommercialPortfolioSegmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:ResidentialPortfolioSegmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:ConsumerPortfolioSegmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-09-30 0000714562 us-gaap:ResidentialMortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:CommercialMortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:MortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-09-30 0000714562 us-gaap:TaxableMunicipalBondsMember 2021-09-30 0000714562 us-gaap:USTreasurySecuritiesMember 2021-09-30 0000714562 us-gaap:CollateralizedDebtObligationsMember 2021-09-30 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2020-12-31 0000714562 us-gaap:ResidentialMortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:CommercialMortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:MortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0000714562 us-gaap:TaxableMunicipalBondsMember 2020-12-31 0000714562 us-gaap:USTreasurySecuritiesMember 2020-12-31 0000714562 us-gaap:CollateralizedDebtObligationsMember 2020-12-31 0000714562 srt:MinimumMember 2021-09-30 0000714562 srt:MaximumMember 2021-09-30 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0000714562 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:FairValueInputsLevel2Member us-gaap:ResidentialMortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:ResidentialMortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel1Member us-gaap:CommercialMortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialMortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:CommercialMortgageBackedSecuritiesMember 2021-09-30 0000714562 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0000714562 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0000714562 us-gaap:TaxableMunicipalBondsMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:TaxableMunicipalBondsMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0000714562 us-gaap:TaxableMunicipalBondsMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0000714562 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasurySecuritiesMember 2021-09-30 0000714562 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0000714562 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0000714562 us-gaap:FairValueInputsLevel1Member 2021-09-30 0000714562 us-gaap:FairValueInputsLevel2Member 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member 2021-09-30 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0000714562 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0000714562 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:FairValueInputsLevel2Member us-gaap:ResidentialMortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:ResidentialMortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel1Member us-gaap:CommercialMortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialMortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:CommercialMortgageBackedSecuritiesMember 2020-12-31 0000714562 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0000714562 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0000714562 us-gaap:TaxableMunicipalBondsMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:TaxableMunicipalBondsMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0000714562 us-gaap:TaxableMunicipalBondsMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0000714562 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasurySecuritiesMember 2020-12-31 0000714562 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0000714562 us-gaap:CollateralizedDebtObligationsMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0000714562 us-gaap:FairValueInputsLevel1Member 2020-12-31 0000714562 us-gaap:FairValueInputsLevel2Member 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member 2020-12-31 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-06-30 0000714562 us-gaap:CollateralizedDebtObligationsMember 2021-06-30 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-07-01 2021-09-30 0000714562 us-gaap:CollateralizedDebtObligationsMember 2021-07-01 2021-09-30 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-01-01 2021-09-30 0000714562 us-gaap:CollateralizedDebtObligationsMember 2021-01-01 2021-09-30 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-12-31 0000714562 us-gaap:CollateralizedDebtObligationsMember 2019-12-31 0000714562 us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-01-01 2020-12-31 0000714562 us-gaap:CollateralizedDebtObligationsMember 2020-01-01 2020-12-31 0000714562 2020-01-01 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member thff:StateAndMunicipalObligationMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member thff:StateAndMunicipalObligationMember 2021-01-01 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member thff:ImpairedLoansMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member thff:ImpairedLoansMember 2021-01-01 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member thff:StateAndMunicipalObligationMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member thff:StateAndMunicipalObligationMember 2021-01-01 2021-06-30 0000714562 us-gaap:FairValueInputsLevel3Member thff:ImpairedLoansMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member thff:ImpairedLoansMember 2021-01-01 2021-06-30 0000714562 srt:MinimumMember us-gaap:MeasurementInputDiscountRateMember 2021-09-30 0000714562 srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2021-09-30 0000714562 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-09-30 0000714562 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-09-30 0000714562 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-12-31 0000714562 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember thff:StateAndMunicipalObligationMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember thff:StateAndMunicipalObligationMember 2021-09-30 0000714562 thff:OtherRealEstateMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember 2021-09-30 0000714562 thff:OtherRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember thff:ImpairedLoansMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember thff:ImpairedLoansMember 2021-09-30 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember thff:StateAndMunicipalObligationMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember thff:StateAndMunicipalObligationMember 2020-12-31 0000714562 thff:OtherRealEstateMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember 2020-12-31 0000714562 thff:OtherRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember thff:ImpairedLoansMember 2020-12-31 0000714562 us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember thff:ImpairedLoansMember 2020-12-31 0000714562 us-gaap:MaturityOvernightMember 2021-09-30 0000714562 us-gaap:MaturityUpTo30DaysMember 2021-09-30 0000714562 us-gaap:Maturity30To90DaysMember 2021-09-30 0000714562 us-gaap:MaturityOver90DaysMember 2021-09-30 0000714562 us-gaap:MaturityOvernightMember 2020-12-31 0000714562 us-gaap:MaturityUpTo30DaysMember 2020-12-31 0000714562 us-gaap:Maturity30To90DaysMember 2020-12-31 0000714562 us-gaap:MaturityOver90DaysMember 2020-12-31 0000714562 thff:PensionBenefitsMember 2021-07-01 2021-09-30 0000714562 thff:PensionBenefitsMember 2020-07-01 2020-09-30 0000714562 thff:PostRetirementHealthBenefitsMember 2021-07-01 2021-09-30 0000714562 thff:PostRetirementHealthBenefitsMember 2020-07-01 2020-09-30 0000714562 thff:PensionBenefitsMember 2021-01-01 2021-09-30 0000714562 thff:PensionBenefitsMember 2020-01-01 2020-09-30 0000714562 thff:PostRetirementHealthBenefitsMember 2021-01-01 2021-09-30 0000714562 thff:PostRetirementHealthBenefitsMember 2020-01-01 2020-09-30 0000714562 thff:PostRetirementHealthBenefitsMember 2020-12-31 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-06-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-06-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-07-01 2021-09-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-09-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-12-31 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-12-31 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-01-01 2021-09-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-06-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-06-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-07-01 2020-09-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-09-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-12-31 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-01-01 2020-09-30 0000714562 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2021-06-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2021-07-01 2021-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2021-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2021-06-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2021-07-01 2021-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2021-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2020-12-31 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2021-01-01 2021-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2020-12-31 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2021-01-01 2021-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2020-06-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2020-07-01 2020-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2020-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2020-06-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2020-07-01 2020-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2020-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2019-12-31 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithoutOtherThanTemporaryImpairmentMember 2020-01-01 2020-09-30 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2019-12-31 0000714562 thff:UnrealizedGainsLossesOnSecuritiesAvailableforsaleWithOtherThanTemporaryImpairmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-07-01 2021-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-01 2021-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-07-01 2020-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0000714562 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-09-30 0000714562 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended September 30, 2021
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission File Number 0-16759
FIRST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Indiana | 35-1546989
(State or other jurisdiction | (I.R.S. Employer
incorporation or organization) | Identification No.)
One First Financial Plaza, Terre Haute, IN | 47807
(Address of principal executive office) | (Zip Code)
(812) | 238-6000 |
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class |  | Trading Symbol |  | Name of each exchange on which registered
Common Stock, par value $0.125 per share |  | THFF |  | The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨.
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer | ¨ | Accelerated filer | þ
Non-accelerated filer (Do not check if a smaller reporting company) | ¨ | Smaller reporting company | ☐
Emerging growth company | ☐ |  |

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No þ.
As of November 1, 2021, the registrant had outstanding 12,871,936 shares of common stock, without par value.

Table of Contents
FIRST FINANCIAL CORPORATION
FORM 10-Q
INDEX

| Page No.
PART I. Financial Information |
Item 1. Financial Statements: |
Consolidated Balance Sheets | 3
Consolidated Statements of Income and Comprehensive Income | 4
Consolidated Statements of Shareholders’ Equity | 5
Consolidated Statements of Cash Flows | 7
Notes to Consolidated Financial Statements | 8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 35
Item 3. Quantitative and Qualitative Disclosures about Market Risk | 38
Item 4. Controls and Procedures | 41
PART II. Other Information: |
Item 1. Legal Proceedings | 42
Item 1A. Risk Factors | 42
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 42
Item 3. Defaults upon Senior Securities | 42
Item 4. Mine Safety Disclosures | 42
Item 5. Other Information | 42
Item 6. Exhibits | 43
Signatures | 44

2

Table of Contents
Part I – Financial Information
Item 1.Financial Statements
FIRST FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)

| September 30, 2021 |  | December 31, 2020
| (unaudited)
ASSETS |  |  |
Cash and due from banks | $ | 758,120 |  |  | $ | 657,470 |
Federal funds sold | 6,183 |  |  | 301 |
Securities available-for-sale | 1,270,820 |  |  | 1,020,744 |
Loans: |  |  |
Commercial | 1,457,984 |  |  | 1,521,711 |
Residential | 535,855 |  |  | 604,652 |
Consumer | 482,115 |  |  | 479,750 |
| 2,475,954 |  |  | 2,606,113 |
(Less) plus: |  |  |
Net deferred loan (fees)/costs | 3,956 |  |  | 4,181 |
Allowance for credit losses | (42,962) |  |  | (47,052) |
| 2,436,948 |  |  | 2,563,242 |
Restricted stock | 14,837 |  |  | 14,812 |
Accrued interest receivable | 15,963 |  |  | 16,957 |
Premises and equipment, net | 63,187 |  |  | 62,063 |
Bank-owned life insurance | 106,895 |  |  | 95,849 |
Goodwill | 78,592 |  |  | 78,592 |
Other intangible assets | 7,725 |  |  | 8,972 |
Other real estate owned | 884 |  |  | 1,012 |
Other assets | 40,939 |  |  | 37,530 |
TOTAL ASSETS | $ | 4,801,093 |  |  | $ | 4,557,544 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |
Deposits: |  |  |
Non-interest-bearing | $ | 814,902 |  |  | $ | 732,694 |
Interest-bearing: |  |  |
Certificates of deposit exceeding the FDIC insurance limits | 68,920 |  |  | 107,764 |
Other interest-bearing deposits | 3,144,814 |  |  | 2,915,487 |
| 4,028,636 |  |  | 3,755,945 |
Short-term borrowings | 101,051 |  |  | 116,061 |
Other borrowings | 5,902 |  |  | 5,859 |
Other liabilities | 70,569 |  |  | 82,687 |
TOTAL LIABILITIES | 4,206,158 |  |  | 3,960,552 |
Shareholders’ equity |  |  |
Common stock, $0.125 stated value per share; |  |  |
Authorized shares-40,000,000 |  |  |
Issued shares-16,096,313 in 2021 and 16,075,154 in 2020 |  |  |
Outstanding shares-12,871,936 in 2021 and 13,558,511 in 2020 | 2,009 |  |  | 2,007 |
Additional paid-in capital | 141,456 |  |  | 140,820 |
Retained earnings | 559,693 |  |  | 521,103 |
Accumulated other comprehensive income/(loss) | (1,102) |  |  | 9,764 |
Less: Treasury shares at cost-3,224,377 in 2021 and 2,516,643 in 2020 | (107,121) |  |  | (76,702) |
TOTAL SHAREHOLDERS’ EQUITY | 594,935 |  |  | 596,992 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 4,801,093 |  |  | $ | 4,557,544 |

See accompanying notes.
3

Table of Contents
FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data)

| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited)
INTEREST INCOME: |  |  |  |  |  |  |
Loans, including related fees | $ | 31,937 |  |  | $ | 34,077 |  |  | $ | 95,760 |  |  | $ | 102,335 |
Securities: |  |  |  |  |  |  |
Taxable | 3,627 |  |  | 3,005 |  |  | 10,061 |  |  | 10,658 |
Tax-exempt | 2,234 |  |  | 1,994 |  |  | 6,471 |  |  | 5,940 |
Other | 347 |  |  | 463 |  |  | 1,080 |  |  | 1,265 |
TOTAL INTEREST INCOME | 38,145 |  |  | 39,539 |  |  | 113,372 |  |  | 120,198 |
INTEREST EXPENSE: |  |  |  |  |  |  |
Deposits | 1,959 |  |  | 2,689 |  |  | 6,335 |  |  | 10,238 |
Short-term borrowings | 99 |  |  | 107 |  |  | 291 |  |  | 475 |
Other borrowings | 59 |  |  | 212 |  |  | 177 |  |  | 709 |
TOTAL INTEREST EXPENSE | 2,117 |  |  | 3,008 |  |  | 6,803 |  |  | 11,422 |
NET INTEREST INCOME | 36,028 |  |  | 36,531 |  |  | 106,569 |  |  | 108,776 |
Provision for credit losses | (1,500) |  |  | 4,425 |  |  | (3,244) |  |  | 10,080 |
NET INTEREST INCOME AFTER PROVISION |  |  |  |  |  |  |
FOR CREDIT LOSSES | 37,528 |  |  | 32,106 |  |  | 109,813 |  |  | 98,696 |
NON-INTEREST INCOME: |  |  |  |  |  |  |
Trust and financial services | 1,156 |  |  | 1,210 |  |  | 3,774 |  |  | 4,032 |
Service charges and fees on deposit accounts | 2,697 |  |  | 2,516 |  |  | 7,267 |  |  | 7,616 |
Other service charges and fees | 4,466 |  |  | 4,269 |  |  | 13,747 |  |  | 11,468 |
Securities gains (losses), net | 5 |  |  | 5 |  |  | 111 |  |  | 230 |
Gain on sales of mortgage loans | 1,425 |  |  | 2,910 |  |  | 4,268 |  |  | 4,813 |
Other | 1,343 |  |  | 829 |  |  | 2,150 |  |  | 1,451 |
TOTAL NON-INTEREST INCOME | 11,092 |  |  | 11,739 |  |  | 31,317 |  |  | 29,610 |
NON-INTEREST EXPENSE: |  |  |  |  |  |  |
Salaries and employee benefits | 15,770 |  |  | 15,474 |  |  | 47,478 |  |  | 45,769 |
Occupancy expense | 2,151 |  |  | 2,003 |  |  | 6,302 |  |  | 6,094 |
Equipment expense | 2,177 |  |  | 2,739 |  |  | 7,195 |  |  | 7,873 |
FDIC Expense | 313 |  |  | 135 |  |  | 898 |  |  | (46) |
Other | 8,048 |  |  | 6,779 |  |  | 22,221 |  |  | 21,877 |
TOTAL NON-INTEREST EXPENSE | 28,459 |  |  | 27,130 |  |  | 84,094 |  |  | 81,567 |
INCOME BEFORE INCOME TAXES | 20,161 |  |  | 16,715 |  |  | 57,036 |  |  | 46,739 |
Provision for income taxes | 4,063 |  |  | 2,715 |  |  | 11,447 |  |  | 8,634 |
NET INCOME | 16,098 |  |  | 14,000 |  |  | 45,589 |  |  | 38,105 |
OTHER COMPREHENSIVE INCOME (LOSS) |  |  |  |  |  |  |
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes | (2,985) |  |  | 2,223 |  |  | (12,281) |  |  | 18,451 |
Change in funded status of post retirement benefits, net of taxes | 471 |  |  | 383 |  |  | 1,415 |  |  | 1,171 |
COMPREHENSIVE INCOME | $ | 13,584 |  |  | $ | 16,606 |  |  | $ | 34,723 |  |  | $ | 57,727 |
PER SHARE DATA |  |  |  |  |  |  |
Basic and Diluted Earnings per Share | $ | 1.24 |  |  | $ | 1.02 |  |  | $ | 3.42 |  |  | $ | 2.78 |
Weighted average number of shares outstanding (in thousands) | 13,019 |  |  | 13,715 |  |  | 13,320 |  |  | 13,723 |

See accompanying notes.
4

Table of Contents
FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
September 30, 2021, and 2020
(Dollar amounts in thousands, except per share data)
(Unaudited)

| Common Stock |  | Additional Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Income/(Loss) |  | Treasury Stock |  | Total
Balance, July 1, 2020 | $ | 2,006 |  |  | $ | 140,103 |  |  | $ | 509,029 |  |  | $ | 9,515 |  |  | $ | (70,369) |  |  | $ | 590,284 |
Net income | — |  |  | — |  |  | 14,000 |  |  | — |  |  | — |  |  | 14,000 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | 2,606 |  |  | — |  |  | 2,606 |
Omnibus Equity Incentive Plan | — |  |  | 205 |  |  | — |  |  | — |  |  | — |  |  | 205 |
Balance, September 30, 2020 | $ | 2,006 |  |  | $ | 140,308 |  |  | $ | 523,029 |  |  | $ | 12,121 |  |  | $ | (70,369) |  |  | $ | 607,095 |
Balance, July 1, 2021 | $ | 2,008 |  |  | $ | 141,240 |  |  | $ | 543,595 |  |  | $ | 1,412 |  |  | $ | (100,092) |  |  | $ | 588,163 |
Net income | — |  |  | — |  |  | 16,098 |  |  | — |  |  | — |  |  | 16,098 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | (2,514) |  |  | — |  |  | (2,514) |
Omnibus Equity Incentive Plan | 1 |  |  | 216 |  |  | — |  |  | — |  |  | — |  |  | 217 |
Treasury shares purchased (176,293 shares) | — |  |  | — |  |  | — |  |  | — |  |  | (7,029) |  |  | (7,029) |
Balance, September 30, 2021 | $ | 2,009 |  |  | $ | 141,456 |  |  | $ | 559,693 |  |  | $ | (1,102) |  |  | $ | (107,121) |  |  | $ | 594,935 |

See accompanying notes.
FIRST FINANCIAL CORPORATION
5

Table of Contents
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Nine Months Ended
September 30, 2021, and 2020
(Dollar amounts in thousands, except per share data)
(Unaudited)

| Common Stock |  | Additional Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Income/(Loss) |  | Treasury Stock |  | Total
Balance, January 1, 2020 | $ | 2,005 |  |  | $ | 139,694 |  |  | $ | 492,055 |  |  | $ | (7,501) |  |  | $ | (68,645) |  |  | $ | 557,608 |
Net income | — |  |  | — |  |  | 38,105 |  |  | — |  |  | — |  |  | 38,105 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | 19,622 |  |  | — |  |  | 19,622 |
Omnibus Equity Incentive Plan | 1 |  |  | 614 |  |  | — |  |  | — |  |  | — |  |  | 615 |
Treasury shares purchased (46,989 shares) | — |  |  | — |  |  | — |  |  | — |  |  | (1,724) |  |  | (1,724) |
Cash dividends, $.52 per share | — |  |  | — |  |  | (7,131) |  |  | — |  |  | — |  |  | (7,131) |
Balance, September 30, 2020 | $ | 2,006 |  |  | $ | 140,308 |  |  | $ | 523,029 |  |  | $ | 12,121 |  |  | $ | (70,369) |  |  | $ | 607,095 |
Balance, January 1, 2021 | $ | 2,007 |  |  | $ | 140,820 |  |  | $ | 521,103 |  |  | $ | 9,764 |  |  | $ | (76,702) |  |  | $ | 596,992 |
Net income | — |  |  | — |  |  | 45,589 |  |  | — |  |  | — |  |  | 45,589 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | (10,866) |  |  | — |  |  | (10,866) |
Omnibus Equity Incentive Plan | 2 |  |  | 636 |  |  | — |  |  | — |  |  | — |  |  | 638 |
Treasury shares purchased (707,734 shares) | — |  |  | — |  |  | — |  |  | — |  |  | (30,419) |  |  | (30,419) |
Cash dividends, $.53 per share | — |  |  | — |  |  | (6,999) |  |  | — |  |  | — |  |  | (6,999) |
Balance, September 30, 2021 | $ | 2,009 |  |  | $ | 141,456 |  |  | $ | 559,693 |  |  | $ | (1,102) |  |  | $ | (107,121) |  |  | $ | 594,935 |

6

Table of Contents
FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands, except per share data)

| Nine Months Ended September 30,
| 2021 |  | 2020
| (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
Net Income | $ | 45,589 |  |  | $ | 38,105 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
Net amortization (accretion) of premiums and discounts on investments | 6,207 |  |  | 5,149 |
Provision for credit losses | (3,244) |  |  | 10,080 |
Securities (gains) losses | (111) |  |  | (230) |
Gain on sales of mortgage loans | (4,268) |  |  | (4,813) |
(Gain) Loss on sale of other real estate | 10 |  |  | 140 |
Restricted stock compensation | 638 |  |  | 615 |
Depreciation and amortization | 4,670 |  |  | 4,527 |
Other, net | (6,583) |  |  | (780) |
NET CASH FROM OPERATING ACTIVITIES | 42,908 |  |  | 52,793 |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
Proceeds from sales of securities available-for-sale | 9,369 |  |  | 28,161 |
Calls, maturities and principal reductions on securities available-for-sale | 198,613 |  |  | 181,963 |
Purchases of securities available-for-sale | (479,007) |  |  | (221,830) |
Loans made to customers, net of repayment | 135,691 |  |  | (92,854) |
Redemption of restricted stock | — |  |  | 400 |
Purchase of restricted stock | (25) |  |  | (18) |
Purchase of bank owned life insurance | (10,000) |  |  | — |
Proceeds from sales of other real estate owned | 237 |  |  | 487 |
Net change in federal funds sold | (5,882) |  |  | 6,841 |
Additions to premises and equipment | (4,547) |  |  | (3,681) |
NET CASH FROM INVESTING ACTIVITIES | (155,551) |  |  | (100,531) |
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
Net change in deposits | 272,903 |  |  | 329,929 |
Net change in short-term borrowings | (15,010) |  |  | 15,130 |
Maturities of other borrowings | — |  |  | (37,010) |
Proceeds from other borrowings | — |  |  | 16,700 |
Purchase of treasury stock | (30,419) |  |  | (1,724) |
Dividends paid | (14,181) |  |  | (14,273) |
NET CASH FROM FINANCING ACTIVITIES | 213,293 |  |  | 308,752 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 100,650 |  |  | 261,014 |
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD | 657,470 |  |  | 127,426 |
CASH AND DUE FROM BANKS, END OF PERIOD | $ | 758,120 |  |  | $ | 388,440 |

See accompanying notes.
7

Table of Contents
FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The accompanying September 30, 2021 and 2020 consolidated financial statements are unaudited. The December 31, 2020 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2020 annual report. The information presented does not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The following notes should be read together with notes to the consolidated financial statements included in the 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2020.
1.Significant Accounting Policies
The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board, and other federal banking agencies may or are required to implement. Further, in response to the COVID-19 outbreak, the Federal Reserve Board has implemented or announced a number of facilities to provide emergency liquidity to various segments of the U.S. economy and financial market.
The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The date was subsequently extended to December 31, 2021. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented.
The extent to which the COVID-19 pandemic impacts the Corporation’s business, liquidity, asset valuations, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. Moreover, the effects of the COVID-19 pandemic may have a material adverse effect on all or a combination of valuation impairments on the Corporation's intangible assets, investments, loans, or deferred tax assets.
The CARES Act included an option for entities to delay the implementation of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ("CECL") until the earlier of the termination date of the National emergency declaration by the President or December 31, 2020. The Corporation adopted ASU 2016-13 on December 31, 2020 with an effective date of January 1, 2020. In the first three quarters of 2020 the provision was calculated using the incurred loss basis. Beginning in the fourth quarter 2020, the allowance for credit loss and related provision were calculated using CECL.
The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. For the nine months ended 2021 and 2020, 21,159 and 19,688 shares were awarded, respectively. These
8

Table of Contents
shares had a grant date value of $885 thousand and $837 thousand for 2021 and 2020, vest over three years, and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded.
2.Allowance for Credit Losses
The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended September 30.

Allowance for Credit Losses: |  | September 30, 2021
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total
Beginning balance |  | $ | 15,693 |  |  | $ | 17,837 |  |  | $ | 10,988 |  |  | $ | 214 |  |  | $ | 44,732 |
Provision for credit losses |  | (531) |  |  | (1,387) |  |  | 173 |  |  | 245 |  |  | (1,500) |
Loans charged-off |  | (313) |  |  | (61) |  |  | (1,240) |  |  | — |  |  | (1,614) |
Recoveries |  | 182 |  |  | 130 |  |  | 1,032 |  |  | — |  |  | 1,344 |
Ending Balance |  | $ | 15,031 |  |  | $ | 16,519 |  |  | $ | 10,953 |  |  | $ | 459 |  |  | $ | 42,962 |

Allowance for Credit Losses: |  | September 30, 2020
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total
Beginning balance |  | $ | 10,149 |  |  | $ | 1,876 |  |  | $ | 10,054 |  |  | $ | 1,206 |  |  | $ | 23,285 |
Provision for credit losses |  | 1,992 |  |  | 17 |  |  | 1,695 |  |  | 721 |  |  | 4,425 |
Loans charged-off |  | (160) |  |  | (296) |  |  | (1,542) |  |  | — |  |  | (1,998) |
Recoveries |  | 147 |  |  | 185 |  |  | 916 |  |  | — |  |  | 1,248 |
Ending Balance |  | $ | 12,128 |  |  | $ | 1,782 |  |  | $ | 11,123 |  |  | $ | 1,927 |  |  | $ | 26,960 |

The following table presents the activity of the allowance for credit losses by portfolio segment for the nine months ended September 30.

Allowance for Credit Losses: |  | September 30, 2021
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total
Beginning balance |  | $ | 16,901 |  |  | $ | 19,142 |  |  | $ | 11,009 |  |  | $ | — |  |  | $ | 47,052 |
Provision for credit losses |  | (2,067) |  |  | (2,577) |  |  | 941 |  |  | 459 |  |  | (3,244) |
Loans charged -off |  | (612) |  |  | (492) |  |  | (3,999) |  |  | — |  |  | (5,103) |
Recoveries |  | 809 |  |  | 446 |  |  | 3,002 |  |  | — |  |  | 4,257 |
Ending Balance |  | $ | 15,031 |  |  | $ | 16,519 |  |  | $ | 10,953 |  |  | $ | 459 |  |  | $ | 42,962 |

Allowance for Credit Losses: |  | September 30, 2020
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total
Beginning balance |  | $ | 8,945 |  |  | $ | 1,302 |  |  | $ | 8,304 |  |  | $ | 1,392 |  |  | $ | 19,943 |
Provision for credit losses |  | 3,325 |  |  | 795 |  |  | 5,425 |  |  | 535 |  |  | 10,080 |
Loans charged -off |  | (834) |  |  | (719) |  |  | (4,889) |  |  | — |  |  | (6,442) |
Recoveries |  | 692 |  |  | 404 |  |  | 2,283 |  |  | — |  |  | 3,379 |
Ending Balance |  | $ | 12,128 |  |  | $ | 1,782 |  |  | $ | 11,123 |  |  | $ | 1,927 |  |  | $ | 26,960 |

9

Table of Contents
The following table presents loans individually evaluated for impairment by class of loans.

|  | Three Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2020
|  | Average Recorded |  | Interest Income |  | Cash Basis Interest Income |  | Average Recorded |  | Interest Income |  | Cash Basis Interest Income
(Dollar amounts in thousands) |  | Investment |  | Recognized |  | Recognized |  | Investment |  | Recognized |  | Recognized
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |
Commercial & Industrial |  | $ | 1,026 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,048 |  |  | $ | — |  |  | $ | — |
Farmland |  | 662 |  |  | — |  |  | — |  |  | 1,161 |  |  | — |  |  | — |
Non Farm, Non Residential |  | 3,436 |  |  | — |  |  | — |  |  | 2,596 |  |  | — |  |  | — |
Agriculture |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
All Other Commercial |  | 25 |  |  | — |  |  | — |  |  | 26 |  |  | — |  |  | — |
Residential |  |  |  |  |  |  |  |  |  |  |  |
First Liens |  | 3,452 |  |  | — |  |  | — |  |  | 3,609 |  |  | — |  |  | — |
Home Equity |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Junior Liens |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
All Other Residential |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  |  |  |  |  |  |  |  |  |  |  |
Motor Vehicle |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
All Other Consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |
Commercial & Industrial |  | 2,136 |  |  | — |  |  | — |  |  | 1,140 |  |  | — |  |  | — |
Farmland |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non Farm, Non Residential |  | 171 |  |  | — |  |  | — |  |  | 86 |  |  | — |  |  | — |
Agriculture |  | 190 |  |  | — |  |  | — |  |  | 95 |  |  | — |  |  | — |
All Other Commercial |  | 754 |  |  | — |  |  | — |  |  | 377 |  |  | — |  |  | — |
Residential |  |  |  |  |  |  |  |  |  |  |  |
First Liens |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Home Equity |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Junior Liens |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  | 1,346 |  |  | — |  |  | — |  |  | 673 |  |  | — |  |  | — |
All Other Residential |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  |  |  |  |  |  |  |  |  |  |  |
Motor Vehicle |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
All Other Consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
TOTAL |  | $ | 13,198 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,811 |  |  | $ | — |  |  | $ | — |

10

Table of Contents
The tables below present the recorded investment in non-performing loans by class of loans.

|  | September 30, 2021
|  | Loans Past Due Over 90 Days Still |  |  |  | Nonaccrual With No Allowance
(Dollar amounts in thousands) |  | Accruing |  | Nonaccrual |  | For Credit Loss
Commercial |  |  |  |  |  |
Commercial & Industrial |  | $ | — |  |  | $ | 3,451 |  |  | $ | 750 |
Farmland |  | — |  |  | 1,039 |  |  | 1,014 |
Non Farm, Non Residential |  | — |  |  | 3,100 |  |  | 2,990 |
Agriculture |  | — |  |  | 1,214 |  |  | 1,150 |
All Other Commercial |  | — |  |  | 252 |  |  | — |
Residential |  |  |  |  |  |
First Liens |  | 1,173 |  |  | 2,723 |  |  | 46 |
Home Equity |  | 13 |  |  | 86 |  |  | — |
Junior Liens |  | 35 |  |  | 300 |  |  | — |
Multifamily |  | — |  |  | 205 |  |  | — |
All Other Residential |  | — |  |  | 114 |  |  | — |
Consumer |  |  |  |  |  |
Motor Vehicle |  | 191 |  |  | 528 |  |  | — |
All Other Consumer |  | — |  |  | 638 |  |  | — |
TOTAL |  | $ | 1,412 |  |  | $ | 13,650 |  |  | $ | 5,950 |

|  | December 31, 2020
|  | Loans Past Due Over 90 Days Still |  |  |  | Nonaccrual With No Allowance
(Dollar amounts in thousands) |  | Accruing |  | Nonaccrual |  | For Credit Loss
Commercial |  |  |  |  |  |
Commercial & Industrial |  | $ | — |  |  | $ | 4,838 |  |  | $ | 1,080 |
Farmland |  | — |  |  | 195 |  |  | — |
Non Farm, Non Residential |  | — |  |  | 3,729 |  |  | 3,267 |
Agriculture |  | — |  |  | 409 |  |  | — |
All Other Commercial |  | — |  |  | 533 |  |  | 24 |
Residential |  |  |  |  |  |
First Liens |  | 1,746 |  |  | 2,604 |  |  | 86 |
Home Equity |  | 88 |  |  | 30 |  |  | — |
Junior Liens |  | 252 |  |  | 206 |  |  | — |
Multifamily |  | — |  |  | 1,380 |  |  | — |
All Other Residential |  | — |  |  | 135 |  |  | — |
Consumer |  |  |  |  |  |
Motor Vehicle |  | 372 |  |  | 754 |  |  | — |
All Other Consumer |  | — |  |  | 554 |  |  | — |
TOTAL |  | $ | 2,458 |  |  | $ | 15,367 |  |  | $ | 4,457 |

11

Table of Contents
The following tables present the amortized cost basis of collateral dependent loans by class of loans:

|  |  | September 30, 2021
|  |  | Collateral Type
(Dollar amounts in thousands) |  | Real Estate |  | Other
Commercial |  |  |  |
| Commercial & Industrial |  | $ | 2,993 |  |  | $ | 1,053 |
| Farmland |  | 3,699 |  |  |
| Non Farm, Non Residential |  | 6,367 |  |  |
| Agriculture |  | — |  |  | 1,150 |
| All Other Commercial |  | 248 |  |  | — |
Residential |  |  |  |
| First Liens |  | 46 |  |  | — |
| Home Equity |  | — |  |  | — |
| Junior Liens |  | — |  |  | — |
| Multifamily |  | 205 |  |  | — |
| All Other Residential |  | — |  |  | — |
Consumer |  |  |  |
| Motor Vehicle |  | — |  |  | — |
| All Other Consumer |  | — |  |  | — |
Total |  |  | $ | 13,558 |  |  | $ | 2,203 |

|  |  | December 31, 2020
|  |  | Collateral Type
(Dollar amounts in thousands) |  | Real Estate |  | Other
Commercial |  |  |  |
| Commercial & Industrial |  | $ | 3,293 |  |  | $ | 2,221 |
| Farmland |  | 2,771 |  |  |
| Non Farm, Non Residential |  | 6,838 |  |  |
| Agriculture |  | — |  |  | 599 |
| All Other Commercial |  | 528 |  |  | 24 |
Residential |  |  |  |
| First Liens |  | 86 |  |  | — |
| Home Equity |  | — |  |  | — |
| Junior Liens |  | — |  |  | — |
| Multifamily |  | 1,380 |  |  | — |
| All Other Residential |  | — |  |  | — |
Consumer |  |  |  |
| Motor Vehicle |  | — |  |  | — |
| All Other Consumer |  | — |  |  | — |
Total |  |  | $ | 14,896 |  |  | $ | 2,844 |

12

Table of Contents
The following tables presents the aging of the recorded investment in loans by past due category and class of loans.

|  | September 30, 2021
|  | 30-59 Days |  | 60-89 Days |  | 90 Days and Greater |  | Total |  |  |  |
(Dollar amounts in thousands) |  | Past Due |  | Past Due |  | Past Due |  | Past Due |  | Current |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |
Commercial & Industrial |  | $ | 2,283 |  |  | $ | 59 |  |  | $ | 2,741 |  |  | $ | 5,083 |  |  | $ | 569,962 |  |  | $ | 575,045 |
Farmland |  | — |  |  | — |  |  | — |  |  | — |  |  | 114,045 |  |  | 114,045 |
Non Farm, Non Residential |  | 63 |  |  | 68 |  |  | 7 |  |  | 138 |  |  | 342,073 |  |  | 342,211 |
Agriculture |  | 96 |  |  | — |  |  | 1,188 |  |  | 1,284 |  |  | 122,284 |  |  | 123,568 |
All Other Commercial |  | 77 |  |  | — |  |  | — |  |  | 77 |  |  | 310,325 |  |  | 310,402 |
Residential |  |  |  |  |  |  |  |  |  |  |  |
First Liens |  | 858 |  |  | 873 |  |  | 1,840 |  |  | 3,571 |  |  | 302,634 |  |  | 306,205 |
Home Equity |  | 304 |  |  | 210 |  |  | 86 |  |  | 600 |  |  | 57,099 |  |  | 57,699 |
Junior Liens |  | 81 |  |  | 71 |  |  | 188 |  |  | 340 |  |  | 50,794 |  |  | 51,134 |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | 106,564 |  |  | 106,564 |
All Other Residential |  | — |  |  | 45 |  |  | — |  |  | 45 |  |  | 15,556 |  |  | 15,601 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |
Motor Vehicle |  | 5,147 |  |  | 836 |  |  | 229 |  |  | 6,212 |  |  | 444,294 |  |  | 450,506 |
All Other Consumer |  | 127 |  |  | 50 |  |  | — |  |  | 177 |  |  | 33,380 |  |  | 33,557 |
TOTAL |  | $ | 9,036 |  |  | $ | 2,212 |  |  | $ | 6,279 |  |  | $ | 17,527 |  |  | $ | 2,469,010 |  |  | $ | 2,486,537 |

|  | December 31, 2020
|  | 30-59 Days |  | 60-89 Days |  | 90 Days and Greater |  | Total |  |  |  |
(Dollar amounts in thousands) |  | Past Due |  | Past Due |  | Past Due |  | Past Due |  | Current |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |
Commercial & Industrial |  | $ | 685 |  |  | $ | 746 |  |  | $ | 3,364 |  |  | $ | 4,795 |  |  | $ | 603,777 |  |  | $ | 608,572 |
Farmland |  | 22 |  |  | — |  |  | 91 |  |  | 113 |  |  | 118,528 |  |  | 118,641 |
Non Farm, Non Residential |  | 155 |  |  | — |  |  | 271 |  |  | 426 |  |  | 350,681 |  |  | 351,107 |
Agriculture |  | 28 |  |  | 30 |  |  | 275 |  |  | 333 |  |  | 146,147 |  |  | 146,480 |
All Other Commercial |  | — |  |  | — |  |  | 24 |  |  | 24 |  |  | 305,612 |  |  | 305,636 |
Residential |  |  |  |  |  |  |  |  |  |  |  |
First Liens |  | 5,506 |  |  | 1,866 |  |  | 2,365 |  |  | 9,737 |  |  | 314,730 |  |  | 324,467 |
Home Equity |  | 260 |  |  | 29 |  |  | 104 |  |  | 393 |  |  | 60,362 |  |  | 60,755 |
Junior Liens |  | 421 |  |  | 68 |  |  | 341 |  |  | 830 |  |  | 53,346 |  |  | 54,176 |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | 151,042 |  |  | 151,042 |
All Other Residential |  | — |  |  | 50 |  |  | — |  |  | 50 |  |  | 15,918 |  |  | 15,968 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |
Motor Vehicle |  | 6,975 |  |  | 1,294 |  |  | 560 |  |  | 8,829 |  |  | 441,283 |  |  | 450,112 |
All Other Consumer |  | 164 |  |  | 19 |  |  | 13 |  |  | 196 |  |  | 31,401 |  |  | 31,597 |
TOTAL |  | $ | 14,216 |  |  | $ | 4,102 |  |  | $ | 7,408 |  |  | $ | 25,726 |  |  | $ | 2,592,827 |  |  | $ | 2,618,553 |

13

Table of Contents
During the three and nine months ended September 30, 2021 and 2020, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.

|  |  |  | 2021 |  |
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Total
July 1, |  | $ | — |  |  | $ | 3,904 |  |  | $ | 556 |  |  | $ | 4,460 |
Added |  | — |  |  | — |  |  | 172 |  |  | 172 |
Charged Off |  | — |  |  | — |  |  | — |  |  | — |
Payments |  | — |  |  | (91) |  |  | (52) |  |  | (143) |
September 30, |  | $ | — |  |  | $ | 3,813 |  |  | $ | 676 |  |  | $ | 4,489 |

|  |  |  | 2021 |  |
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Total
January 1, |  | $ | — |  |  | $ | 3,589 |  |  | $ | 617 |  |  | $ | 4,206 |
Added |  | — |  |  | 491 |  |  | 294 |  |  | 785 |
Charged Off |  | — |  |  | (27) |  |  | (75) |  |  | (102) |
Payments |  | — |  |  | (240) |  |  | (160) |  |  | (400) |
September 30, |  | $ | — |  |  | $ | 3,813 |  |  | $ | 676 |  |  | $ | 4,489 |

|  |  |  | 2020 |  |
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Total
July 1, |  | — |  |  | 3,231 |  |  | 668 |  |  | 3,899 |
Added |  | — |  |  | 313 |  |  | 81 |  |  | 394 |
Charged Off |  | — |  |  | — |  |  | (30) |  |  | (30) |
Payments |  | — |  |  | (112) |  |  | (54) |  |  | (166) |
September 30, |  | — |  |  | 3,432 |  |  | 665 |  |  | 4,097 |

|  |  |  | 2020 |  |
(Dollar amounts in thousands) |  | Commercial |  | Residential |  | Consumer |  | Total
January 1, |  | 11 |  |  | 3,485 |  |  | 698 |  |  | 4,194 |
Added |  | — |  |  | 436 |  |  | 216 |  |  | 652 |
Charged Off |  | — |  |  | (6) |  |  | (80) |  |  | (86) |
Payments |  | (11) |  |  | (483) |  |  | (169) |  |  | (663) |
September 30, |  | — |  |  | 3,432 |  |  | 665 |  |  | 4,097 |

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2021 or 2020 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three months ended September 30, 2021 and 2020 did not result in any material charge-offs or additional provision expense.
The Corporation has no allocations of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2021 and 2020. The Corporation has not committed to lend additional amounts as of September 30, 2021 and 2020 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three and nine months ended September 30, 2021 and 2020 were of restructurings that had occurred in the previous 12 months.
The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies
14

Table of Contents
issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. From the inception of the CARES Act through September 30, 2021, 1,332 loans totaling $268 million were modified, related to COVID-19, that were not considered troubled debt restructurings. 1,053 loans totaling $224 million have resumed normal scheduled payments. 217 remaining loans are still under a debt relief plan, which include 12 commercial loans totaling $36 million that have been provided additional payment relief since the initial payment relief plan. 5 loans totaling $232 thousand are under the original payment relief plan.
Credit Quality Indicators:
The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:
Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.
Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.
15

Table of Contents
The following tables present the commercial loan portfolio by risk category:

|  |  |  | September 30, 2021
|  |  |  | Term Loans at Amortized Cost Basis by Origination Year |  | Revolving |  |
|  |  |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Loans |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Commercial and Industrial | Pass |  | $122,680 |  | $50,449 |  | $77,006 |  | $39,487 |  | $30,908 |  | $108,292 |  | $88,924 |  | $517,746
|  | Special Mention |  | 1,818 |  | 244 |  | 1,190 |  | 6,835 |  | 315 |  | 4,421 |  | 7,780 |  | $22,603
|  | Substandard |  | 2,780 |  | 14 |  | 359 |  | 3,519 |  | 418 |  | 3,769 |  | 268 |  | $11,127
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | 17,933 |  | 1,841 |  | 1,065 |  | 630 |  | 266 |  | 162 |  | — |  | $21,897
|  | Subtotal |  | $145,211 |  | $52,548 |  | $79,620 |  | $50,471 |  | $31,907 |  | $116,644 |  | $96,972 |  | $573,373
| Farmland | Pass |  | $11,133 |  | $9,892 |  | $11,010 |  | $11,103 |  | $8,471 |  | $46,333 |  | $1,315 |  | $99,257
|  | Special Mention |  | — |  | — |  | 914 |  | — |  | 221 |  | 3,257 |  | — |  | $4,392
|  | Substandard |  | 3,455 |  | 1,635 |  | — |  | — |  | 680 |  | 2,595 |  | — |  | $8,365
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | — |  | — |  | — |  | — |  | — |  | 27 |  | — |  | $27
|  | Subtotal |  | $14,588 |  | $11,527 |  | $11,924 |  | $11,103 |  | $9,372 |  | $52,212 |  | $1,315 |  | $112,041
| Non Farm, Non Residential | Pass |  | $42,941 |  | $37,200 |  | $28,621 |  | $34,126 |  | $59,981 |  | $104,483 |  | $8,969 |  | $316,321
|  | Special Mention |  | — |  | — |  | 1,112 |  | 183 |  | 1,973 |  | 3,344 |  | — |  | $6,612
|  | Substandard |  | — |  | — |  | 927 |  | — |  | 1,456 |  | 15,694 |  | — |  | $18,077
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | — |  | — |  | — |  | — |  | — |  | 508 |  | — |  | $508
|  | Subtotal |  | $42,941 |  | $37,200 |  | $30,660 |  | $34,309 |  | $63,410 |  | $124,029 |  | $8,969 |  | $341,518
| Agriculture | Pass |  | $5,246 |  | $10,723 |  | $10,609 |  | $2,831 |  | $4,667 |  | $17,305 |  | $55,670 |  | $107,051
|  | Special Mention |  | — |  | — |  | 1,403 |  | — |  | 570 |  | 2,699 |  | 4,587 |  | $9,259
|  | Substandard |  | — |  | — |  | 286 |  | 1 |  | 13 |  | 1,699 |  | 3,091 |  | $5,090
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | 5 |  | 131 |  | 159 |  | 57 |  | 5 |  | — |  | — |  | $357
|  | Subtotal |  | $5,251 |  | $10,854 |  | $12,457 |  | $2,889 |  | $5,255 |  | $21,703 |  | $63,348 |  | $121,757
| Other Commercial | Pass |  | $32,312 |  | $65,747 |  | $42,256 |  | $36,953 |  | $55,929 |  | $69,970 |  | $5,736 |  | $308,903
|  | Special Mention |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Substandard |  | — |  | — |  | — |  | — |  | — |  | 259 |  | — |  | $259
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | 90 |  | — |  | — |  | 43 |  | — |  | — |  | — |  | $133
|  | Subtotal |  | $32,402 |  | $65,747 |  | $42,256 |  | $36,996 |  | $55,929 |  | $70,229 |  | $5,736 |  | $309,295
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Multifamily >5 Residential | Pass |  | $8,658 |  | $48,145 |  | $8,903 |  | $6,982 |  | $2,757 |  | $18,865 |  | $1,467 |  | $95,777
|  | Special Mention |  | — |  | — |  | — |  | — |  | — |  | 10,386 |  | — |  | $10,386
|  | Substandard |  | — |  | — |  | — |  | 205 |  | — |  | — |  | — |  | $205
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Subtotal |  | $8,658 |  | $48,145 |  | $8,903 |  | $7,187 |  | $2,757 |  | $29,251 |  | $1,467 |  | $106,368
Total |  | Pass |  | $222,970 |  | $222,156 |  | $178,405 |  | $131,482 |  | $162,713 |  | $365,248 |  | $162,081 |  | $1,445,055
|  | Special Mention |  | 1,818 |  | 244 |  | 4,619 |  | 7,018 |  | 3,079 |  | 24,107 |  | 12,367 |  | $53,252
|  | Substandard |  | 6,235 |  | 1,649 |  | 1,572 |  | 3,725 |  | 2,567 |  | 24,016 |  | 3,359 |  | $43,123
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | 18,028 |  | 1,972 |  | 1,224 |  | 730 |  | 271 |  | 697 |  | — |  | $22,922
Total commercial loans |  |  | $249,051 |  | $226,021 |  | $185,820 |  | $142,955 |  | $168,630 |  | $414,068 |  | $177,807 |  | $1,564,352

16

Table of Contents

|  |  |  | December 31, 2020
|  |  |  | Term Loans at Amortized Cost Basis by Origination Year |  | Revolving |  |
|  |  |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Loans |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Commercial and Industrial | Pass |  | $159,494 |  | $77,253 |  | $64,298 |  | $41,806 |  | $20,564 |  | $103,598 |  | $91,615 |  | $558,628
|  | Special Mention |  | 4,848 |  | 1,331 |  | 4,427 |  | 216 |  | 1,278 |  | 4,566 |  | 3,695 |  | $20,361
|  | Substandard |  | 3,780 |  | 323 |  | 4,187 |  | 1,148 |  | 3,543 |  | 2,565 |  | 3,124 |  | $18,670
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | 2,618 |  | 1,772 |  | 1,446 |  | 580 |  | 105 |  | 2,255 |  | — |  | $8,776
|  | Subtotal |  | $170,740 |  | $80,679 |  | $74,358 |  | $43,750 |  | $25,490 |  | $112,984 |  | $98,434 |  | $606,435
| Farmland | Pass |  | $10,010 |  | $12,775 |  | $12,149 |  | $10,089 |  | $15,863 |  | $40,338 |  | $1,386 |  | $102,610
|  | Special Mention |  | 988 |  | 947 |  | — |  | 230 |  | 1,900 |  | 2,656 |  | — |  | $6,721
|  | Substandard |  | 1,718 |  | 2,303 |  | — |  | 716 |  | 1,628 |  | 826 |  | — |  | $7,191
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Subtotal |  | $12,716 |  | $16,025 |  | $12,149 |  | $11,035 |  | $19,391 |  | $43,820 |  | $1,386 |  | $116,522
| Non Farm, Non Residential | Pass |  | $39,914 |  | $33,261 |  | $38,111 |  | $63,371 |  | $49,511 |  | $83,052 |  | $4,092 |  | $311,312
|  | Special Mention |  | — |  | 998 |  | — |  | 305 |  | 9,982 |  | 6,811 |  | — |  | $18,096
|  | Substandard |  | — |  | 1,188 |  | — |  | 4,310 |  | 7,484 |  | 7,028 |  | — |  | $20,010
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | — |  | — |  | — |  | — |  | — |  | 682 |  | — |  | $682
|  | Subtotal |  | $39,914 |  | $35,447 |  | $38,111 |  | $67,986 |  | $66,977 |  | $97,573 |  | $4,092 |  | $350,100
| Agriculture | Pass |  | $13,336 |  | $8,330 |  | $3,485 |  | $5,329 |  | $3,732 |  | $16,792 |  | $67,052 |  | $118,056
|  | Special Mention |  | — |  | 1,483 |  | 1,203 |  | 664 |  | 5 |  | 428 |  | 7,611 |  | $11,394
|  | Substandard |  | — |  | 3,834 |  | 18 |  | 223 |  | 2,435 |  | 1,988 |  | 5,926 |  | $14,424
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | 159 |  | 216 |  | 110 |  | 6 |  | 13 |  | — |  | — |  | $504
|  | Subtotal |  | $13,495 |  | $13,863 |  | $4,816 |  | $6,222 |  | $6,185 |  | $19,208 |  | $80,589 |  | $144,378
| Other Commercial | Pass |  | $44,673 |  | $57,200 |  | $41,470 |  | $61,442 |  | $40,196 |  | $50,325 |  | $5,162 |  | $300,468
|  | Special Mention |  | — |  | — |  | — |  | 7 |  | — |  | 2,786 |  | — |  | $2,793
|  | Substandard |  | — |  | — |  | — |  | 24 |  | 528 |  | 24 |  | — |  | $576
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | — |  | 3 |  | 52 |  | 39 |  | 345 |  | — |  | — |  | $439
|  | Subtotal |  | $44,673 |  | $57,203 |  | $41,522 |  | $61,512 |  | $41,069 |  | $53,135 |  | $5,162 |  | $304,276
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Multifamily >5 Residential | Pass |  | $44,599 |  | $9,892 |  | $36,563 |  | $19,749 |  | $4,676 |  | $21,704 |  | $1,293 |  | $138,476
|  | Special Mention |  | — |  | — |  | — |  | — |  | 102 |  | 10,662 |  | — |  | $10,764
|  | Substandard |  | — |  | — |  | 1,380 |  | — |  | — |  | — |  | — |  | $1,380
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Subtotal |  | $44,599 |  | $9,892 |  | $37,943 |  | $19,749 |  | $4,778 |  | $32,366 |  | $1,293 |  | $150,620
Total |  | Pass |  | $312,026 |  | $198,711 |  | $196,076 |  | $201,786 |  | $134,542 |  | $315,809 |  | $170,600 |  | $1,529,550
|  | Special Mention |  | 5,836 |  | 4,759 |  | 5,630 |  | 1,422 |  | 13,267 |  | 27,909 |  | 11,306 |  | $70,129
|  | Substandard |  | 5,498 |  | 7,648 |  | 5,585 |  | 6,421 |  | 15,618 |  | 12,431 |  | 9,050 |  | $62,251
|  | Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | $0
|  | Not Rated |  | 2,777 |  | 1,991 |  | 1,608 |  | 625 |  | 463 |  | 2,937 |  | — |  | $10,401
Total commercial loans |  |  | $326,137 |  | $213,109 |  | $208,899 |  | $210,254 |  | $163,890 |  | $359,086 |  | $190,956 |  | $1,672,331

17

Table of Contents
The Corporation evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on non-accrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the balance of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming:

|  |  |  | September 30, 2021
|  |  |  | Term Loans at Amortized Cost Basis by Origination Year |  | Revolving |  |
|  |  |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Loans |  | Total
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| First Liens | Performing |  | $50,313 |  | $41,216 |  | $22,039 |  | $24,469 |  | $26,484 |  | $134,510 |  | $2,417 |  | $301,448
|  | Non-performing |  | — |  | 150 |  | 528 |  | 70 |  | 319 |  | 2,801 |  | — |  | $3,868
|  | Subtotal |  | $50,313 |  | $41,366 |  | $22,567 |  | $24,539 |  | $26,803 |  | $137,311 |  | $2,417 |  | $305,316
| Home Equity | Performing |  | $1,643 |  | $9 |  | $191 |  | $131 |  | $64 |  | $1,367 |  | $54,088 |  | $57,493
|  | Non-performing |  | — |  | — |  | — |  | — |  | 3 |  | 96 |  | — |  | $99
|  | Subtotal |  | $1,643 |  | $9 |  | $191 |  | $131 |  | $67 |  | $1,463 |  | $54,088 |  | $57,592
| Junior Liens | Performing |  | $10,379 |  | $10,642 |  | $8,962 |  | $8,640 |  | $4,650 |  | $6,306 |  | $1,102 |  | $50,681
|  | Non-performing |  | — |  | 7 |  | 39 |  | 74 |  | 122 |  | 99 |  | — |  | $341
|  | Subtotal |  | $10,379 |  | $10,649 |  | $9,001 |  | $8,714 |  | $4,772 |  | $6,405 |  | $1,102 |  | $51,022
| Other Residential | Performing |  | $7,849 |  | $4,493 |  | $1,405 |  | $325 |  | $281 |  | $1,072 |  | $0 |  | $15,425
|  | Non-performing |  | — |  | — |  | 57 |  | 45 |  | — |  | 30 |  | — |  | $132
|  | Subtotal |  | $7,849 |  | $4,493 |  | $1,462 |  | $370 |  | $281 |  | $1,102 |  | $0 |  | $15,557
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Motor Vehicle | Performing |  | $155,728 |  | $176,592 |  | $71,421 |  | $28,477 |  | $12,091 |  | $3,674 |  | $— |  | $447,983
|  | Non-performing |  | 29 |  | 203 |  | 266 |  | 144 |  | 50 |  | 11 |  | — |  | $703
|  | Subtotal |  | $155,757 |  | $176,795 |  | $71,687 |  | $28,621 |  | $12,141 |  | $3,685 |  | $— |  | $448,686
| Other Consumer | Performing |  | $13,309 |  | $9,441 |  | $3,651 |  | $1,065 |  | $327 |  | $982 |  | $4,013 |  | $32,788
|  | Non-performing |  | 251 |  | 199 |  | 125 |  | 41 |  | 19 |  | 4 |  | 2 |  | $641
|  | Subtotal |  | $13,560 |  | $9,640 |  | $3,776 |  | $1,106 |  | $346 |  | $986 |  | $4,015 |  | $33,429
Total | Performing |  | $239,221 |  | $242,393 |  | $107,669 |  | $63,107 |  | $43,897 |  | $147,911 |  | $61,620 |  | $905,818
|  | Non-performing |  | 280 |  | 559 |  | 1,015 |  | 374 |  | 513 |  | 3,041 |  | 2 |  | $5,784
Total other loans |  |  | $239,501 |  | $242,952 |  | $108,684 |  | $63,481 |  | $44,410 |  | $150,952 |  | $61,622 |  | $911,602

18

Table of Contents

|  |  |  | December 31, 2020
|  |  |  | Term Loans at Amortized Cost Basis by Origination Year |  | Revolving |  |
|  |  |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Loans |  | Total
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| First Liens | Performing |  | $47,875 |  | $33,737 |  | $31,634 |  | $36,426 |  | $30,419 |  | $135,456 |  | $3,235 |  | $318,782
|  | Non-performing |  | — |  | 40 |  | 95 |  | 343 |  | 107 |  | 4,062 |  | — |  | $4,647
|  | Subtotal |  | $47,875 |  | $33,777 |  | $31,729 |  | $36,769 |  | $30,526 |  | $139,518 |  | $3,235 |  | $323,429
| Home Equity | Performing |  | $854 |  | $135 |  | $644 |  | $20 |  | $— |  | $1,525 |  | $57,334 |  | $60,512
|  | Non-performing |  | — |  | — |  | 1 |  | — |  | — |  | 91 |  | 24 |  | $116
|  | Subtotal |  | $854 |  | $135 |  | $645 |  | $20 |  | $— |  | $1,616 |  | $57,358 |  | $60,628
| Junior Liens | Performing |  | $13,125 |  | $12,742 |  | $11,139 |  | $6,214 |  | $3,948 |  | $5,099 |  | $1,333 |  | $53,600
|  | Non-performing |  | — |  | 129 |  | 48 |  | 198 |  | 9 |  | 66 |  | — |  | $450
|  | Subtotal |  | $13,125 |  | $12,871 |  | $11,187 |  | $6,412 |  | $3,957 |  | $5,165 |  | $1,333 |  | $54,050
| Other Residential | Performing |  | $9,773 |  | $2,775 |  | $1,372 |  | $292 |  | $178 |  | $733 |  | $651 |  | $15,774
|  | Non-performing |  | — |  | 62 |  | 50 |  | — |  | — |  | 39 |  | — |  | $151
|  | Subtotal |  | $9,773 |  | $2,837 |  | $1,422 |  | $292 |  | $178 |  | $772 |  | $651 |  | $15,925
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Motor Vehicle | Performing |  | $245,839 |  | $113,293 |  | $51,649 |  | $24,786 |  | $10,026 |  | $1,600 |  | $— |  | $447,193
|  | Non-performing |  | 318 |  | 355 |  | 257 |  | 127 |  | 36 |  | 11 |  | — |  | $1,104
|  | Subtotal |  | $246,157 |  | $113,648 |  | $51,906 |  | $24,913 |  | $10,062 |  | $1,611 |  | $— |  | $448,297
| Other Consumer | Performing |  | $15,298 |  | $7,328 |  | $2,622 |  | $724 |  | $854 |  | $703 |  | $3,352 |  | $30,881
|  | Non-performing |  | 231 |  | 200 |  | 92 |  | 22 |  | — |  | 8 |  | 19 |  | $572
|  | Subtotal |  | $15,529 |  | $7,528 |  | $2,714 |  | $746 |  | $854 |  | $711 |  | $3,371 |  | $31,453
Total | Performing |  | $332,764 |  | $170,010 |  | $99,060 |  | $68,462 |  | $45,425 |  | $145,116 |  | $65,905 |  | $926,742
|  | Non-performing |  | 549 |  | 786 |  | 543 |  | 690 |  | 152 |  | 4,277 |  | 43 |  | $7,040
Total other loans |  |  | $333,313 |  | $170,796 |  | $99,603 |  | $69,152 |  | $45,577 |  | $149,393 |  | $65,948 |  | $933,782

19

Table of Contents
3.Securities
The amortized cost and fair value of the Corporation’s investments are shown below. All securities are classified as available-for-sale.

|  | September 30, 2021
(Dollar amounts in thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Government agencies |  | $ | 115,492 |  |  | $ | 3,965 |  |  | $ | (366) |  |  | $ | 119,091 |
Mortgage Backed Securities - residential |  | 574,048 |  |  | 6,056 |  |  | (5,165) |  |  | 574,939 |
Mortgage Backed Securities - commercial |  | 15,591 |  |  | 336 |  |  | — |  |  | 15,927 |
Collateralized mortgage obligations |  | 160,643 |  |  | 2,397 |  |  | (772) |  |  | 162,268 |
State and municipal obligations |  | 345,263 |  |  | 18,664 |  |  | (770) |  |  | 363,157 |
Municipal taxable |  | 31,067 |  |  | 539 |  |  | (68) |  |  | 31,538 |
U.S. Treasury |  | 656 |  |  | — |  |  | — |  |  | 656 |
Collateralized debt obligations |  | — |  |  | 3,244 |  |  | — |  |  | 3,244 |
TOTAL |  | $ | 1,242,760 |  |  | $ | 35,201 |  |  | $ | (7,141) |  |  | $ | 1,270,820 |

|  | December 31, 2020
(Dollar amounts in thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Government agencies |  | $ | 92,710 |  |  | $ | 5,105 |  |  | $ | (1) |  |  | $ | 97,814 |
Mortgage Backed Securities-residential |  | 346,606 |  |  | 8,794 |  |  | (279) |  |  | 355,121 |
Mortgage Backed Securities-commercial |  | 17,931 |  |  | 559 |  |  | — |  |  | 18,490 |
Collateralized mortgage obligations |  | 209,556 |  |  | 4,761 |  |  | (157) |  |  | 214,160 |
State and municipal obligations |  | 285,837 |  |  | 20,294 |  |  | — |  |  | 306,131 |
Municipal taxable |  | 22,440 |  |  | 702 |  |  | (3) |  |  | 23,139 |
U.S. Treasury |  | 2,750 |  |  | 3 |  |  | — |  |  | 2,753 |
Collateralized debt obligations |  | — |  |  | 3,136 |  |  | — |  |  | 3,136 |
TOTAL |  | $ | 977,830 |  |  | $ | 43,354 |  |  | $ | (440) |  |  | $ | 1,020,744 |

Contractual maturities of debt securities at September 30, 2021 were as follows.

|  | Available-for-Sale
|  | Amortized |  | Fair
(Dollar amounts in thousands) |  | Cost |  | Value
Due in one year or less |  | $ | 12,587 |  |  | $ | 12,658 |
Due after one but within five years |  | 46,094 |  |  | 47,490 |
Due after five but within ten years |  | 71,063 |  |  | 74,923 |
Due after ten years |  | 362,734 |  |  | 382,615 |
|  | 492,478 |  |  | 517,686 |
Mortgage-backed securities and collateralized mortgage obligations |  | 750,282 |  |  | 753,134 |
TOTAL |  | $ | 1,242,760 |  |  | $ | 1,270,820 |

There were $5 thousand and $268 thousand in gross gains and zero and $157 thousand in losses from investment sales/calls realized by the Corporation for the three and nine months ended September 30, 2021. For the three and nine months ended September 30, 2020 there were $5 thousand and $283 thousand in gross gains and zero and $53 thousand in losses on sales/calls of investment securities.
20

Table of Contents
The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2021 and December 31, 2020.

|  | September 30, 2021
|  | Less Than 12 Months |  | More Than 12 Months |  | Total
|  |  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
(Dollar amounts in thousands) |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
U.S. Government agencies |  | $ | 28,142 |  |  | $ | (364) |  |  | $ | 159 |  |  | $ | (2) |  |  | $ | 28,301 |  |  | $ | (366) |
Mortgage Backed Securities - Residential |  | 341,414 |  |  | (5,047) |  |  | 4,746 |  |  | (118) |  |  | 346,160 |  |  | (5,165) |
Collateralized mortgage obligations |  | 53,536 |  |  | (702) |  |  | 7,938 |  |  | (70) |  |  | 61,474 |  |  | (772) |
State and municipal obligations |  | 64,791 |  |  | (770) |  |  | — |  |  | — |  |  | 64,791 |  |  | (770) |
Municipal taxable |  | 6,459 |  |  | (49) |  |  | 731 |  |  | (19) |  |  | 7,190 |  |  | (68) |
U.S. Treasury |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total temporarily impaired securities |  | $ | 494,342 |  |  | $ | (6,932) |  |  | $ | 13,574 |  |  | $ | (209) |  |  | $ | 507,916 |  |  | $ | (7,141) |

|  | December 31, 2020
|  | Less Than 12 Months |  | More Than 12 Months |  | Total
|  |  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
(Dollar amounts in thousands) |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
U.S. Government agencies |  | $ | — |  |  | $ | — |  |  | $ | 944 |  |  | $ | (1) |  |  | $ | 944 |  |  | $ | (1) |
Mortgage Backed Securities - Residential |  | 76,962 |  |  | (279) |  |  | — |  |  | — |  |  | 76,962 |  |  | (279) |
Collateralized mortgage obligations |  | 12,282 |  |  | (108) |  |  | 3,767 |  |  | (49) |  |  | 16,049 |  |  | (157) |
State and municipal obligations |  | 747 |  |  | (3) |  |  | — |  |  | — |  |  | 747 |  |  | (3) |
U.S. Treasury |  | 250 |  |  | — |  |  | — |  |  | — |  |  | 250 |  |  | — |
Total temporarily impaired securities |  | $ | 90,241 |  |  | $ | (390) |  |  | $ | 4,711 |  |  | $ | (50) |  |  | $ | 94,952 |  |  | $ | (440) |

Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for impairment related to credit losses by segregating the portfolio into two general segments.
In evaluating for impairment, management considers the reason for the decline, the extent of the decline, the duration of the decline and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security's amortized cost is written down to fair value through income. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.
Gross unrealized losses on investment securities were $7.1 million as of September 30, 2021 and $440 thousand as of December 31, 2020. Management believes these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.
21

Table of Contents
The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2021 and 2020:

|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollar amounts in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Beginning balance |  | $ | 2,974 |  |  | $ | 2,974 |  |  | $ | 2,974 |  |  | $ | 2,974 |
Reductions for securities called during the period |  | — |  |  | — |  |  | — |  |  | — |
Ending balance |  | $ | 2,974 |  |  | $ | 2,974 |  |  | $ | 2,974 |  |  | $ | 2,974 |

4.Fair Value
FASB ASC No. 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
The fair value of most securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).
For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity and certain investments in state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. As described previously, management obtains values from other pricing sources to validate the Standard & Poors pricing that they currently utilize. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurements.
The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).
22

Table of Contents

|  | September 30, 2021
|  | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
U.S. Government agencies |  | $ | — |  |  | $ | 119,091 |  |  | $ | — |  |  | $ | 119,091 |
Mortgage Backed Securities-residential |  | — |  |  | 574,939 |  |  | — |  |  | 574,939 |
Mortgage Backed Securities-commercial |  | — |  |  | 15,927 |  |  | — |  |  | 15,927 |
Collateralized mortgage obligations |  | — |  |  | 162,268 |  |  | — |  |  | 162,268 |
State and municipal |  | — |  |  | 361,262 |  |  | 1,895 |  |  | 363,157 |
Municipal taxable |  | — |  |  | 31,538 |  |  | — |  |  | 31,538 |
U.S. Treasury |  | — |  |  | 656 |  |  | — |  |  | 656 |
Collateralized debt obligations |  | — |  |  | — |  |  | 3,244 |  |  | 3,244 |
TOTAL |  | $ | — |  |  | $ | 1,265,681 |  |  | $ | 5,139 |  |  | $ | 1,270,820 |
Derivative Assets |  |  |  | 1,371 |  |  |  |  |
Derivative Liabilities |  |  |  | (1,371) |  |  |  |  |

|  | December 31, 2020
|  | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
U.S. Government agencies |  | $ | — |  |  | $ | 97,814 |  |  | $ | — |  |  | $ | 97,814 |
Mortgage Backed Securities-residential |  | — |  |  | 355,121 |  |  | — |  |  | 355,121 |
Mortgage Backed Securities-commercial |  | — |  |  | 18,490 |  |  | — |  |  | 18,490 |
Collateralized mortgage obligations |  | — |  |  | 214,160 |  |  | — |  |  | 214,160 |
State and municipal |  | — |  |  | 304,236 |  |  | 1,895 |  |  | 306,131 |
Municipal taxable |  | — |  |  | 23,139 |  |  | — |  |  | 23,139 |
U.S. Treasury |  | — |  |  | 2,753 |  |  | — |  |  | 2,753 |
Collateralized debt obligations |  | — |  |  | — |  |  | 3,136 |  |  | 3,136 |
TOTAL |  | $ | — |  |  | $ | 1,015,713 |  |  | $ | 5,031 |  |  | $ | 1,020,744 |
Derivative Assets |  |  |  | 2,465 |  |  |  |  |
Derivative Liabilities |  |  |  | (2,465) |  |  |  |  |

There were no transfers between Level 1 and Level 2 during 2021 and 2020.
The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2021 and the year ended December 31, 2020.

| Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
| Three Months Ended September 30, 2021
(Dollar amounts in thousands) | State and municipal obligations |  | Collateralized debt obligations |  | Total
Beginning balance, July 1 | $ | 1,895 |  |  | $ | 3,265 |  |  | $ | 5,160 |
Total realized/unrealized gains or losses |  |  |  |  |
Included in earnings | — |  |  | — |  |  | — |
Included in other comprehensive income | — |  |  | (21) |  |  | (21) |
Transfers | — |  |  | — |  |  | — |
Settlements | — |  |  | — |  |  | — |
Ending balance, September 30 | $ | 1,895 |  |  | $ | 3,244 |  |  | $ | 5,139 |

23

Table of Contents

| Nine Months Ended September 30, 2021
(Dollar amounts in thousands) | State and municipal obligations |  | Collateralized debt obligations |  | Total
Beginning balance, January 1 | $ | 1,895 |  |  | $ | 3,136 |  |  | $ | 5,031 |
Total realized/unrealized gains or losses |  |  |  |  |
Included in earnings | — |  |  | — |  |  | — |
Included in other comprehensive income | — |  |  | 108 |  |  | 108 |
Transfers | — |  |  | — |  |  | — |
Settlements | — |  |  | — |  |  | — |
Ending balance, September 30 | $ | 1,895 |  |  | $ | 3,244 |  |  | $ | 5,139 |

|  | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|  | Year Ended December 31, 2020
(Dollar amounts in thousands) |  | State and municipal obligations |  | Collateralized debt obligations |  | Total
Beginning balance, January 1 |  | $ | 2,565 |  |  | $ | 3,619 |  |  | $ | 6,184 |
Total realized/unrealized gains or losses |  |  |  |  |  |
Included in earnings |  | — |  |  | — |  |  | — |
Included in other comprehensive income |  | — |  |  | (483) |  |  | (483) |
Purchases |  | — |  |  | — |  |  | — |
Settlements |  | (670) |  |  | — |  |  | (670) |
Ending balance, December 31 |  | $ | 1,895 |  |  | $ | 3,136 |  |  | $ | 5,031 |

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2021.

(Dollar amounts in thousands) |  | Fair Value |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range
State and municipal obligations |  | $ | 1,895 |  |  | Discounted cash flow |  | Discount rate Probability of default |  | 3.41%-4.44% 0%
Collateral dependent loans |  | $ | 2,231 |  |  | Discounted collateral |  | Discount rate for age of appraisal and market conditions |  | 0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2020.

(Dollar amounts in thousands) |  | Fair Value |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range
State and municipal obligations |  | $ | 1,895 |  |  | Discounted cash flow |  | Discount rate Probability of default |  | 3.41%-4.44% 0%
Collateral dependent loans |  | 6,581 |  |  | Discounted collateral |  | Discount rate for age of appraisal and market conditions |  | 0.00%-50.00%

24

Table of Contents
Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and individually evaluated loans carried at fair value are primarily comprised of smaller balance properties.
The following tables presents collateral dependent loans measured at fair value on a non-recurring basis, as of September 30, 2021 and December 31, 2020, which are all considered Level 3.

|  | September 30, 2021
(Dollar amounts in thousands) |  | Carrying Value |  | Allowance for Credit Losses Allocated |  | Fair Value
Commercial |  |  |  |  |  |
Commercial & Industrial |  | $ | 3,297 |  |  | $ | 1,162 |  |  | $ | 2,135 |
Farmland |  | — |  |  | — |  |  | — |
Non Farm, Non Residential |  | 3,079 |  |  | 3,058 |  |  | 21 |
Agriculture |  | — |  |  | — |  |  | — |
All Other Commercial |  | 248 |  |  | 207 |  |  | 41 |
Residential |  |  |  |  |  |
First Liens |  | — |  |  | — |  |  | — |
Home Equity |  | — |  |  | — |  |  | — |
Junior Liens |  | — |  |  | — |  |  | — |
Multifamily |  | 205 |  |  | 171 |  |  | 34 |
All Other Residential |  | — |  |  | — |  |  | — |
Consumer |  |  |  |  |  |
Motor Vehicle |  | — |  |  | — |  |  | — |
All Other Consumer |  | — |  |  | — |  |  | — |
TOTAL |  | $ | 6,829 |  |  | $ | 4,598 |  |  | $ | 2,231 |

25

Table of Contents

|  | December 31, 2020
(Dollar amounts in thousands) |  | Carrying Value |  | Allowance for Credit Losses Allocated |  | Fair Value
Commercial |  |  |  |  |  |
Commercial & Industrial |  | $ | 4,435 |  |  | $ | 1,363 |  |  | $ | 3,072 |
Farmland |  | 1,231 |  |  | 35 |  |  | 1,196 |
Non Farm, Non Residential |  | 3,193 |  |  | 3,038 |  |  | 155 |
Agriculture |  | 600 |  |  | 162 |  |  | 438 |
All Other Commercial |  | 528 |  |  | 52 |  |  | 476 |
Residential |  |  |  |  |  |
First Liens |  | — |  |  | — |  |  | — |
Home Equity |  | — |  |  | — |  |  | — |
Junior Liens |  | — |  |  | — |  |  | — |
Multifamily |  | 1,380 |  |  | 136 |  |  | 1,244 |
All Other Residential |  | — |  |  | — |  |  | — |
Consumer |  |  |  |  |  |
Motor Vehicle |  | — |  |  | — |  |  | — |
All Other Consumer |  | — |  |  | — |  |  | — |
TOTAL |  | $ | 11,367 |  |  | $ | 4,786 |  |  | $ | 6,581 |

The carrying amounts and estimated fair value of financial instruments at September 30, 2021 and December 31, 2020, are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully. Security fair values were described previously. For fixed-rate, collectively evaluated loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and considering credit risk. The valuation of individually evaluated loans was described previously. Loan fair value estimates represent an exit price. Fair values of loans held for sale are based on market bids on the loans or similar loans. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material.

|  | September 30, 2021
|  | Carrying |  | Fair Value
(Dollar amounts in thousands) |  | Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and due from banks |  | $ | 758,120 |  |  | $ | 25,996 |  |  | $ | 732,124 |  |  | $ | — |  |  | $ | 758,120 |
Federal funds sold |  | 6,183 |  |  | — |  |  | 6,183 |  |  | — |  |  | 6,183 |
Securities available-for-sale |  | 1,270,820 |  |  | — |  |  | 1,265,681 |  |  | 5,139 |  |  | 1,270,820 |
Restricted stock |  | 14,837 |  |  | n/a |  | n/a |  | n/a |  | n/a
Loans, net |  | 2,436,948 |  |  | — |  |  | — |  |  | 2,381,649 |  |  | 2,381,649 |
Accrued interest receivable |  | 15,963 |  |  | — |  |  | 5,638 |  |  | 10,325 |  |  | 15,963 |
Deposits |  | (4,028,636) |  |  | — |  |  | (4,036,693) |  |  | — |  |  | (4,036,693) |
Short-term borrowings |  | (101,051) |  |  | — |  |  | (101,051) |  |  | — |  |  | (101,051) |
Other borrowings |  | (5,902) |  |  | — |  |  | (6,207) |  |  | — |  |  | (6,207) |
Accrued interest payable |  | (664) |  |  | — |  |  | (664) |  |  | — |  |  | (664) |

26

Table of Contents

|  | December 31, 2020
|  | Carrying |  | Fair Value
(Dollar amounts in thousands) |  | Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and due from banks |  | $ | 657,470 |  |  | $ | 25,645 |  |  | $ | 631,825 |  |  | $ | — |  |  | $ | 657,470 |
Federal funds sold |  | 301 |  |  | — |  |  | 301 |  |  | — |  |  | 301 |
Securities available-for-sale |  | 1,020,744 |  |  | — |  |  | 1,015,713 |  |  | 5,031 |  |  | 1,020,744 |
Restricted stock |  | 14,812 |  |  | n/a |  | n/a |  | n/a |  | n/a
Loans, net |  | 2,563,242 |  |  | — |  |  | — |  |  | 2,560,683 |  |  | 2,560,683 |
Accrued interest receivable |  | 16,957 |  |  | — |  |  | 3,521 |  |  | 13,436 |  |  | 16,957 |
Deposits |  | (3,755,945) |  |  | — |  |  | (3,763,358) |  |  | — |  |  | (3,763,358) |
Short-term borrowings |  | (116,061) |  |  | — |  |  | (116,061) |  |  | — |  |  | (116,061) |
Other borrowings |  | (5,859) |  |  | — |  |  | (6,297) |  |  | — |  |  | (6,297) |
Accrued interest payable |  | (1,033) |  |  | — |  |  | (1,033) |  |  | — |  |  | (1,033) |

5.Short-Term Borrowings
Period–end short-term borrowings were comprised of the following:

(Dollar amounts in thousands) |  | September 30, 2021 |  | December 31, 2020
Federal Funds Purchased |  | $ | 1,575 |  |  | $ | 6,500 |
Repurchase Agreements |  | 99,476 |  |  | 109,561 |
|  | $ | 101,051 |  |  | $ | 116,061 |

The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.
Collateral pledged to repurchase agreements by remaining maturity are as follows:

|  | September 30, 2021
Repurchase Agreements |  | Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands) |  | Overnight and continuous |  | Up to 30 days |  | 30 - 90 days |  | Greater than 90 days |  | Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations |  | $ | 92,952 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,524 |  |  | $ | 99,476 |

|  | December 31, 2020
Repurchase Agreements |  | Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands) |  | Overnight and continuous |  | Up to 30 days |  | 30 - 90 days |  | Greater than 90 days |  | Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations |  | $ | 86,335 |  |  | $ | 1,086 |  |  | $ | 21,342 |  |  | $ | 798 |  |  | $ | 109,561 |

27

Table of Contents
6.Components of Net Periodic Benefit Cost

|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollar amounts in thousands) |  | Pension Benefits |  | Post-Retirement Health Benefits |  | Pension Benefits |  | Post-Retirement Health Benefits
|  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Service cost |  | $ | 339 |  |  | $ | 325 |  |  | $ | 10 |  |  | $ | 10 |  |  | $ | 1,016 |  |  | $ | 975 |  |  | $ | 32 |  |  | $ | 29 |
Interest cost |  | 658 |  |  | 779 |  |  | 26 |  |  | 32 |  |  | 1,974 |  |  | 2,337 |  |  | 77 |  |  | 94 |
Expected return on plan assets |  | (1,178) |  |  | (1,050) |  |  | — |  |  | — |  |  | (3,535) |  |  | (3,149) |  |  | — |  |  | — |
Net amortization of prior service cost |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |
Net amortization of net (gain) loss |  | 518 |  |  | 492 |  |  | — |  |  | — |  |  | 1,554 |  |  | 1,476 |  |  | — |  |  | — |
Net Periodic Benefit Cost |  | $ | 337 |  |  | $ | 547 |  |  | $ | 36 |  |  | $ | 42 |  |  | $ | 1,009 |  |  | $ | 1,640 |  |  | $ | 109 |  |  | $ | 123 |

Employer Contributions
First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2020 that it expected to contribute $2.3 million and $715 thousand respectively to its Pension Plan and ESOP and $240 thousand to the Post Retirement Health Benefits Plan in 2021. Contributions of $1.5 million have been made to the Pension Plan thus far in 2021. Contributions of $167 thousand have been made through the first nine months of 2021 for the Post Retirement Health Benefits plan. No contributions have been made in 2021 for the ESOP. The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit. In the first nine months of 2021 and 2020 there has been $2.3 million and $1.4 million of expense accrued for potential contributions to these alternative retirement benefit options.
7.New accounting standards
Accounting Pronouncements Adopted:
In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” These amendments remove specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences where there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. It also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacts changes in tax laws in interim periods. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Corporation adopted ASU 2019-12 on January 1, 2021. ASU 2019-12 did not have a material impact on the Corporation's financial statements.
Recent Accounting Pronouncements:
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is evaluating the impacts of this ASU and has not yet determined whether LIBOR transition and this ASU will have material effects on the Corporation's business operations and consolidated financial statements.
28

Table of Contents
8.Revenue from Contracts with Customers
All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Corporation's sources of Non-Interest Income for the three and nine months ended September 30, 2021 and 2020. Items outside the scope of ASC 606 are noted as such.

|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollar amounts in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Non-interest income |  |  |  |  |  |  |
| Service charges on deposits and debit card fee income | $ | 6,421 |  |  | $ | 5,670 |  |  | $ | 18,031 |  |  | $ | 16,196 |
| Asset management fees | 1,156 |  |  | 1,056 |  |  | 3,774 |  |  | 3,448 |
| Interchange income | 224 |  |  | 84 |  |  | 423 |  |  | 250 |
| Net gains on sales of loans (a) | 1,426 |  |  | 2,910 |  |  | 4,268 |  |  | 4,813 |
| Loan servicing fees (a) | 344 |  |  | 539 |  |  | 1,485 |  |  | 1,191 |
| Net gains/(losses) on sales of securities (a) | 5 |  |  | 5 |  |  | 111 |  |  | 230 |
| Other service charges and fees (a) | 135 |  |  | 449 |  |  | 957 |  |  | 1,339 |
| Other (b) | 1,381 |  |  | 1,026 |  |  | 2,268 |  |  | 2,143 |
| Total non-interest income | $ | 11,092 |  |  | $ | 11,739 |  |  | $ | 31,317 |  |  | $ | 29,610 |

(a) Not within the scope of ASC 606.
(b) The Other category includes gains/(losses) on the sale of OREO for the three months ended September 30, 2021 and September 30, 2020, totaling $(11) thousand and $5 thousand, respectively, and for the nine months ended for the same periods, totaling $16 thousand and $(3) thousand, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.
Service charges on deposits: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.
Asset management fees: The Corporation earns asset management fees from its contracts with trust customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date. Other related services provided and the fees the Corporation earns, which are based on a fixed fee schedule, are recognized when the services are rendered.
Interchange income: The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.
Gains/Losses on sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.
29

Table of Contents
9.Accumulated Other Comprehensive Income
The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive income/(loss) for the three and nine months ended September 30, 2021 and 2020.

|  | Unrealized |  |  |  |
|  | gains and |  | 2021
|  | (Losses) on available- for-sale |  | Retirement |  |
(Dollar amounts in thousands) |  | Securities |  | plans |  | Total
Beginning balance, July 1, |  | $ | 24,866 |  |  | $ | (23,454) |  |  | $ | 1,412 |
Change in other comprehensive income (loss) before reclassification |  | (2,981) |  |  | — |  |  | (2,981) |
Amounts reclassified from accumulated other comprehensive income |  | (4) |  |  | 471 |  |  | 467 |
Net current period other comprehensive income (loss) |  | (2,985) |  |  | 471 |  |  | (2,514) |
Ending balance, September 30, |  | $ | 21,881 |  |  | $ | (22,983) |  |  | $ | (1,102) |

|  | Unrealized |  |  |  |
|  | gains and |  | 2021
|  | (Losses) on available- for-sale |  | Retirement |  |
(Dollar amounts in thousands) |  | Securities |  | plans |  | Total
Beginning balance, January 1, |  | $ | 34,162 |  |  | $ | (24,398) |  |  | $ | 9,764 |
Change in other comprehensive income (loss) before reclassification |  | (12,198) |  |  | — |  |  | (12,198) |
Amounts reclassified from accumulated other comprehensive income |  | (83) |  |  | 1,415 |  |  | 1,332 |
Net current period other comprehensive income (loss) |  | (12,281) |  |  | 1,415 |  |  | (10,866) |
Ending balance, September 30, |  | $ | 21,881 |  |  | $ | (22,983) |  |  | $ | (1,102) |

|  | Unrealized |  |  |  |
|  | gains and |  | 2020
|  | (Losses) on available- for-sale |  | Retirement |  |
(Dollar amounts in thousands) |  | Securities |  | plans |  | Total
Beginning balance, July 1, |  | $ | 31,121 |  |  | $ | (21,606) |  |  | $ | 9,515 |
Change in other comprehensive income (loss) before reclassification |  | 2,227 |  |  | — |  |  | 2,227 |
Amounts reclassified from accumulated other comprehensive income |  | (4) |  |  | 383 |  |  | 379 |
Net current period other comprehensive income (loss) |  | 2,223 |  |  | 383 |  |  | 2,606 |
Ending balance, September 30, |  | $ | 33,344 |  |  | $ | (21,223) |  |  | $ | 12,121 |

|  | Unrealized |  |  |  |
|  | gains and |  | 2020
|  | (Losses) on available- for-sale |  | Retirement |  |
(Dollar amounts in thousands) |  | Securities |  | plans |  | Total
Beginning balance, January 1, |  | $ | 14,893 |  |  | $ | (22,394) |  |  | $ | (7,501) |
Change in other comprehensive income (loss) before reclassification |  | 18,624 |  |  | — |  |  | 18,624 |
Amounts reclassified from accumulated other comprehensive income |  | (173) |  |  | 1,171 |  |  | 998 |
Net current period other comprehensive income (loss) |  | 18,451 |  |  | 1,171 |  |  | 19,622 |
Ending balance, September 30, |  | $ | 33,344 |  |  | $ | (21,223) |  |  | $ | 12,121 |

30

Table of Contents

|  | Balance at |  | Current Period |  | Balance at
(Dollar amounts in thousands) |  | 7/1/2021 |  | Change |  | 9/30/2021
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |
without other than temporary impairment |  | $ | 22,417 |  |  | $ | (2,969) |  |  | $ | 19,448 |
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |
with other than temporary impairment |  | 2,449 |  |  | (16) |  |  | 2,433 |
Total unrealized loss on securities available-for-sale |  | $ | 24,866 |  |  | $ | (2,985) |  |  | $ | 21,881 |
Unrealized gain (loss) on retirement plans |  | (23,454) |  |  | 471 |  |  | (22,983) |
TOTAL |  | $ | 1,412 |  |  | $ | (2,514) |  |  | $ | (1,102) |

|  | Balance at |  | Current Period |  | Balance at
(Dollar amounts in thousands) |  | 1/1/2021 |  | Change |  | 9/30/2021
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |
without other than temporary impairment |  | $ | 31,810 |  |  | $ | (12,362) |  |  | $ | 19,448 |
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |
with other than temporary impairment |  | 2,352 |  |  | 81 |  |  | 2,433 |
Total unrealized gain (loss) on securities available-for-sale |  | $ | 34,162 |  |  | $ | (12,281) |  |  | $ | 21,881 |
Unrealized loss on retirement plans |  | (24,398) |  |  | 1,415 |  |  | (22,983) |
TOTAL |  | $ | 9,764 |  |  | $ | (10,866) |  |  | $ | (1,102) |

|  | Balance at |  | Current Period |  |  |  | Balance at
(Dollar amounts in thousands) |  | 7/1/2020 |  | Change |  |  |  | 9/30/2020
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |  |  |
without other than temporary impairment |  | $ | 28,913 |  |  | $ | 2,154 |  |  |  |  | $ | 31,067 |
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |  |  |
with other than temporary impairment |  | 2,208 |  |  | 69 |  |  |  |  | 2,277 |
Total unrealized gain (loss) on securities available-for-sale |  | $ | 31,121 |  |  | $ | 2,223 |  |  |  |  | $ | 33,344 |
Unrealized loss on retirement plans |  | (21,606) |  |  | 383 |  |  |  |  | (21,223) |
TOTAL |  | $ | 9,515 |  |  | $ | 2,606 |  |  |  |  | $ | 12,121 |

|  | Balance at |  | Current Period |  |  |  | Balance at
(Dollar amounts in thousands) |  | 1/1/2020 |  | Change |  |  |  | 9/30/2020
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |  |  |
without other than temporary impairment |  | $ | 12,178 |  |  | $ | 18,889 |  |  |  |  | $ | 31,067 |
Unrealized gains (losses) on securities available-for-sale |  |  |  |  |  |  |  |
with other than temporary impairment |  | 2,715 |  |  | (438) |  |  |  |  | 2,277 |
Total unrealized income (loss) on securities available-for-sale |  | $ | 14,893 |  |  | $ | 18,451 |  |  |  |  | $ | 33,344 |
Unrealized gain (loss) on retirement plans |  | (22,394) |  |  | 1,171 |  |  |  |  | (21,223) |
TOTAL |  | $ | (7,501) |  |  | $ | 19,622 |  |  |  |  | $ | 12,121 |

31

Table of Contents

|  | Three Months Ended September 30, 2021 |  |
Details about accumulated |  | Amount reclassified from |  | Affected line item in
other comprehensive |  | accumulated other |  | the statement where
income components |  | comprehensive income |  | net income is presented
|  | (in thousands) |  |
Unrealized gains and losses |  | $ | 5 |  |  | Net securities gains (losses)
on available-for-sale |  | (1) |  |  | Income tax expense
securities |  | $ | 4 |  |  | Net of tax
Amortization of |  | $ | (518) |  |  | (a) Salary and benefits
retirement plan items |  | 47 |  |  | Income tax expense
|  | $ | (471) |  |  | Net of tax
Total reclassifications for the period |  | $ | (467) |  |  | Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details).

|  | Nine Months Ended September 30, 2021 |  |
Details about accumulated |  | Amount reclassified from |  | Affected line item in
other comprehensive |  | accumulated other |  | the statement where
income components |  | comprehensive income |  | net income is presented
|  | (in thousands) |  |
Unrealized gains and losses |  | $ | 111 |  |  | Net securities gains (losses)
on available-for-sale |  | (28) |  |  | Income tax expense
securities |  | $ | 83 |  |  | Net of tax
Amortization of |  | $ | (1,554) |  |  | (a) Salary and benefits
retirement plan items |  | 139 |  |  | Income tax expense
|  | $ | (1,415) |  |  | Net of tax
Total reclassifications for the period |  | $ | (1,332) |  |  | Net of tax

|  | Three Months Ended September 30, 2020 |  |
Details about accumulated |  | Amount reclassified from |  | Affected line item in
other comprehensive |  | accumulated other |  | the statement where
income components |  | comprehensive income |  | net income is presented
|  | (in thousands) |  |
Unrealized gains and losses |  | $ | 5 |  |  | Net securities gains (losses)
on available-for-sale |  | (1) |  |  | Income tax expense
securities |  | $ | 4 |  |  | Net of tax
Amortization of |  | $ | (492) |  |  | (a) Salary and benefits
retirement plan items |  | 109 |  |  | Income tax expense
|  | $ | (383) |  |  | Net of tax
Total reclassifications for the period |  | $ | (379) |  |  | Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details).
32

Table of Contents

|  | Nine Months Ended September 30, 2020 |  |
Details about accumulated |  | Amount reclassified from |  | Affected line item in
other comprehensive |  | accumulated other |  | the statement where
income components |  | comprehensive income |  | net income is presented
|  | (in thousands) |  |
Unrealized gains and losses |  | $ | 230 |  |  | Net securities gains (losses)
on available-for-sale |  | (57) |  |  | Income tax expense
securities |  | $ | 173 |  |  | Net of tax
Amortization of |  | $ | (1,476) |  |  | (a) Salary and benefits
retirement plan items |  | 305 |  |  | Income tax expense
|  | $ | (1,171) |  |  | Net of tax
Total reclassifications for the period |  | $ | (998) |  |  | Net of tax

33

Table of Contents
10.Leases
The Corporation leases certain branches under operating leases. At September 30, 2021, the Corporation had lease liabilities totaling $6,863,000 and right-of-use assets totaling $6,845,000 related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At September 30, 2021, the weighted average remaining lease term for operating leases was 9.8 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.31%.
The calculated amount of the lease liabilities and right-of-use assets are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Corporation's lease agreements often include one or more options to renew at the Corporation's discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the lease liability and right-of-use asset. Regarding the discount rate, the new standard requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.
The following table represents lease costs and other lease information. As the Corporation elected, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.
Lease costs were as follows:

(Dollar amounts in thousands) | Nine Months Ended September 30, 2021
Operating lease cost | $ | 721 |
Short-term lease cost | 137 |
Variable lease cost | 10 |
Total lease cost | $ | 868 |
Other information: |
Cash paid for amounts included in the measurement of operating lease liabilities | 695 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 9,293 |

Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2021 were as follows:

(Dollar amounts in thousands) | September 30, 2021
Twelve Months Ended September 30, |
| 2022 | $ | 1,030 |
| 2023 | 1,010 |
| 2024 | 933 |
| 2025 | 873 |
| 2026 | 691 |
Thereafter | 3,181 |
Total Future Minimum Lease Payments | 7,718 |
Amounts Representing Interest | (855) |
Present Value of Net Future Minimum Lease Payments | $ | 6,863 |

34

Table of Contents
11.Subsequent Events
On August 10, 2021, First Financial Corporation, an Indiana corporation ("FFC"), HB Subsidiary, Inc., a Kentucky corporation and wholly owned subsidiary of FFC ("Merger Sub"), and Hancock Bancorp, Inc., a Kentucky corporation ("HBI"), entered into an Agreement and Plan of Merger (the "Merger Agreement"). Pursuant to the terms of the Merger Agreement, Merger Sub will merge with and into HBI, with HBI as the surviving entity (the "Merger") under the name HB Subsidiary, Inc. Immediately following the Merger, or simultaneously therewith, Hancock Bank and Trust Company, a Kentucky chartered commercial bank and wholly owned subsidiary of HBI ("Hancock Bank & Trust") will merge with and into First Financial Bank, N.A., a national banking association and wholly owned subsidiary of FFC ("First Financial Bank"), with First Financial Bank as the surviving entity (the "Bank Merger"). As soon as practicable following the Bank Merger, HB Subsidiary, Inc. (f/k /a HBI) will merge with and into FFC, with FFC as the surviving corporation (the "Holdco Merger", and together with the Merger and the Bank Merger, the "Transactions").
Merger Consideration
Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the "Effective Time") other than dissenting shares, each share of HBI Common Stock issued and outstanding immediately prior to the Effective Time, except for certain shares held by HBI, will be converted into the right to receive $18.38 per share in cash. The aggregate value of the transaction is $31.35 million..
ITEMS 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations
and Quantitative and Qualitative Disclosures About Market Risk
The purpose of this discussion is to point out key factors in the Corporation’s recent performance compared with earlier periods. The discussion should be read in conjunction with the financial statements beginning on page three of this report. All figures are for the consolidated entities. It is presumed the readers of these financial statements and of the following narrative have previously read the Corporation’s financial statements for 2020 in the 10-K filed for the fiscal year ended December 31, 2020.
This Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation’s business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Risks related to COVID-19 include the disruption of local, regional, national and global economic activity caused by infectious disease outbreaks, including the recent outbreak of coronavirus, or COVID-19, and the significant impact that such outbreak has had and may have on our growth, operations, earnings and asset quality; changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally, and specifically resulting from the economic dislocation caused by the COVID-19 pandemic; inaccuracy of the assumptions and estimates that the management of our Corporation makes in establishing reserves for probable credit losses and other estimates generally, and specifically as a result of the effect of the COVID-19 pandemic; and an increase in the rate of personal or commercial customers' bankruptcies generally, and specifically as a result of the COVID-19 pandemic. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Corporation’s Form 10-K for the year ended December 31, 2020, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC’s Web site at www.sec.gov or on the Corporation’s Web site at www.first-online.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.
Critical Accounting Policies
Certain of the Corporation’s accounting policies are important to the portrayal of the Corporation’s financial condition and results of operations, since they require management to make difficult, complex or subjective judgments, some of which
35

Table of Contents
may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances which could affect these judgments include, without limitation, changes in interest rates, in the performance of the economy or in the financial condition of borrowers. Management believes that its critical accounting policies include determining the allowance for credit losses and the valuation of goodwill and valuing investment securities. See further discussion of these critical accounting policies in the 2020 Form 10-K.
Summary of Operating Results
Net income for the three months ended September 30, 2021 was $16.1 million, compared to $14.0 million for the same period in 2020. Basic earnings per share increased to $1.24 for the third quarter of 2021 compared to $1.02 for the same period in 2020. Return on Assets and Return on Equity were 1.34% and 10.75% respectively, for the three months ended September 30, 2021 compared to 1.28% and 9.29% for the three months ended September 30, 2020. Net income for the nine months ended September 30, 2021 was $45.6 million, compared to $38.1 million for the same period in 2020. Basic earnings per share increased to $3.42 for the first nine months of 2021 compared to $2.78 for the same period in 2020. Return on Assets and Return on Equity were 1.28% and 10.10% respectively, for the nine months ended September 30, 2021, compared to 1.20% and 8.62% for the nine months ended September 30, 2020.
In March 2020, the outbreak of the Coronavirus Disease 2019 (COVID-19) was recognized as a pandemic by the World Health Organization. The spread of COVID-19 has caused economic and social disruption resulting in unprecedented uncertainty, volatility and disruption in financial markets, and has placed significant health, economic and other major pressures throughout the communities we serve, the United States and globally. While some industries have been impacted more severely than others, all businesses have been impacted to some degree. This disruption has resulted in the shuttering of businesses across the country, significant job loss, material decreases in oil and gas prices and in business valuations, changes in consumer behavior related to pandemic fears, and aggressive measures by the federal government.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board, and other federal banking agencies may or are required to implement. Further, in response to the COVID-19 outbreak, the Federal Reserve Board has implemented or announced a number of facilities to provide emergency liquidity to various segments of the U.S. economy and financial market.
On August 10, 2021, First Financial Corporation, an Indiana corporation ("FFC"), HB Subsidiary, Inc., a Kentucky corporation and wholly owned subsidiary of FFC ("Merger Sub"), and Hancock Bancorp, Inc., a Kentucky corporation ("HBI"), entered into an Agreement and Plan of Merger (the "Merger Agreement"). Pursuant to the terms of the Merger Agreement, Merger Sub will merge with and into HBI, with HBI as the surviving entity (the "Merger") under the name HB Subsidiary, Inc. Immediately following the Merger, or simultaneously therewith, Hancock Bank and Trust Company, a Kentucky chartered commercial bank and wholly owned subsidiary of HBI ("Hancock Bank & Trust") will merge with and into First Financial Bank, N.A., a national banking association and wholly owned subsidiary of FFC ("First Financial Bank"), with First Financial Bank as the surviving entity (the "Bank Merger"). As soon as practicable following the Bank Merger, HB Subsidiary, Inc. (f/k /a HBI) will merge with and into FFC, with FFC as the surviving corporation (the "Holdco Merger", and together with the Merger and the Bank Merger, the "Transactions").
On September 27, 2021, First Financial Corporation issued a press release announcing that its Board of Directors has approved the merger of subsidiary, The Morris Plan Company of Terre Haute, into subsidiary, First Financial Bank N.A. The merger will be effective on December 31, 2021, subject to regulatory approval. The merger will result in increased efficiencies, which will be recognized beginning in the first quarter of 2022.
On September 30, 2021, First Financial Corporation issued a press release announcing plans to optimize its banking center network as part of a plan to improve operating efficiencies and accommodate changing customer preferences. Subject to regulatory requirements, over the next two quarters the Corporation will close and consolidate nine of its eighty branches. These consolidations are projected to save the Company approximately $2.3 million per year in operating expenses, commencing in the first quarter of 2022.
The primary components of income and expense affecting net income are discussed in the following analysis.
36

Table of Contents
Net Interest Income
The Corporation's primary source of earnings is net interest income, which is the difference between the interest earned on loans and other investments and the interest paid for deposits and other sources of funds. Net interest income decreased $503 thousand in the three months ended September 30, 2021 to $36.0 million from $36.5 million in the same period in 2020. The net interest margin for the three months ended September 30, 2021 is 3.22% compared to 3.99% for the same period in 2020, a 19.30% decrease. Net interest income decreased $2.2 million in the nine months ended September 30, 2021 to $106.6 million from $108.8 million in the same period in 2020. The net interest margin for the nine months ended September 30, 2021 is 3.24% compared to 4.03% for the same period in 2020. Interest rates dropped significantly from 2020 to 2021, due to federal rate adjustments in response to the COVID-19 pandemic. Also, as a result of the pandemic, cash on hand increased significantly, which yields at a much lower rate.
Non-Interest Income
Non-interest income for the three months ended September 30, 2021 was $11.1 million compared to $11.7 million for the same period of 2020. Non-interest income for the nine months ended September 30, 2021 was $31.3 million compared to $29.6 million for the same period in 2020. The change in non-interest income from 2020 to 2021 was primarily driven by increases in other service charges and fees as a result of increased debit card fee income.
Non-Interest Expenses
The Corporation’s non-interest expense for the quarter ended September 30, 2021 was $28.5 million compared to $27.1 million for the same period in 2020. The Corporation's non-interest expense for the nine months ended September 30, 2021 increased $2.5 million to $84.1 million compared to the same period in 2020.
Allowance for Credit Losses
The Corporation’s provision for credit losses decreased to $(1.5) million for the third quarter of 2021 as compared to $4.4 million for the same period in 2020. Net charge offs for the third quarter of 2021 were $270 thousand compared to $750 thousand for the same period of 2020. The provision for loan losses decreased $13.3 million to $(3.2) million for the nine months ended September 30, 2021 compared to $10.1 million for the same period in 2020. Net charge offs for the first nine months of 2021 decreased $2.2 million to $846 thousand compared to the same period in 2020. In the first three quarters of 2020 the provision was calculated using the incurred loss basis. Beginning in the fourth quarter 2020, the provision was calculated using CECL. In 2020 the provision was adjusted to add in a component for probable losses due to COVID-19. In 2021 those potential losses have not been realized, and the economy has shown improvements which allowed for the decrease in provision. Based on management’s analysis of the current portfolio, an evaluation that includes consideration of changes in CECL model assumptions of credit quality, economic conditions, and loan composition, management believes the allowance is adequate.
Income Tax Expense
The Corporation’s effective income tax rate for the first nine months of 2021 was 20.07% compared to 18.47% for the same period in 2020.
37

Table of Contents
Non-performing Loans
Non-performing loans consist of (1) non-accrual loans on which the ultimate collectability of the full amount of interest is uncertain, (2) loans which have been renegotiated to provide for a reduction or deferral of interest or principal because of a deterioration in the financial position of the borrower, and (3) loans past due ninety days or more as to principal or interest. Non-performing loans decreased to $19.5 million at September 30, 2021 compared to $21.9 million at December 31, 2020. Nonperforming loans decreased 17.7% compared to $23.7 million as of September 30, 2020. A summary of non-performing loans at September 30, 2021 and December 31, 2020 follows:

| (000's)
| September 30, 2021 |  | December 31, 2020
Non-accrual loans | $ | 13,650 |  |  | $ | 15,367 |
Accruing restructured loans | 3,305 |  |  | 3,052 |
Nonaccrual restructured loans | 1,184 |  |  | 1,154 |
Accruing loans past due over 90 days | 1,355 |  |  | 2,324 |
| $ | 19,494 |  |  | $ | 21,897 |
Ratio of the allowance for credit losses |  |  |
as a percentage of non-performing loans | 220.4 | % |  | 214.9 | %

The following loan categories comprise significant components of the nonperforming non-restructured loans:

| (000's)
| September 30, 2021 |  | December 31, 2020
Non-accrual loans |  |  |
Commercial loans | $ | 9,056 |  |  | $ | 9,704 |
Residential loans | 3,428 |  |  | 4,355 |
Consumer loans | 1,166 |  |  | 1,308 |
| $ | 13,650 |  |  | $ | 15,367 |
Past due 90 days or more |  |  |
Commercial loans | $ | — |  |  | $ | — |
Residential loans | 1,167 |  |  | 1,962 |
Consumer loans | 188 |  |  | 362 |
| $ | 1,355 |  |  | $ | 2,324 |

The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The date was subsequently extended to December 31, 2021. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. From the inception of the CARES Act through September 30, 2021, 1,332 loans totaling $268 million were modified, related to COVID-19, that were not considered troubled debt restructurings. 1,053 loans totaling $224 million have resumed normal scheduled payments. 217 remaining loans are still under a debt relief plan, which include 12 commercial loans totaling $36 million that have been provided additional payment relief since the initial payment relief plan. 5 loans totaling $232 thousand are under the original payment relief plan. On these modifications, we have granted payment deferrals, generally for up to three months.
Interest Rate Sensitivity and Liquidity
First Financial Corporation has established risk measures, limits and policy guidelines for managing interest rate risk and liquidity. Responsibility for management of these functions resides with the Asset Liability Committee. The primary goal
38

Table of Contents
of the Asset Liability Committee is to maximize net interest income within the interest rate risk limits approved by the Board of Directors.
Interest Rate Risk
Management considers interest rate risk to be the Corporation’s most significant market risk. Interest rate risk is the exposure to changes in net interest income as a result of changes in interest rates. Consistency in the Corporation’s net interest income is largely dependent on the effective management of this risk.
The Asset Liability position is measured using sophisticated risk management tools, including earning simulation and market value of equity sensitivity analysis. These tools allow management to quantify and monitor both short-term and long-term exposure to interest rate risk. Simulation modeling measures the effects of changes in interest rates, changes in the shape of the yield curve and the effects of embedded options on net interest income. This measure projects earnings in the various environments over the next three years. It is important to note that measures of interest rate risk have limitations and are dependent on various assumptions. These assumptions are inherently uncertain and, as a result, the model cannot precisely predict the impact of interest rate fluctuations on net interest income. Actual results will differ from simulated results due to timing, frequency and amount of interest rate changes as well as overall market conditions. The Committee has performed a thorough analysis of these assumptions and believes them to be valid and theoretically sound. These assumptions are continuously monitored for behavioral changes.
The Corporation from time to time utilizes derivatives to manage interest rate risk. Management continuously evaluates the merits of such interest rate risk products but does not anticipate the use of such products to become a major part of the Corporation’s risk management strategy.
The table below shows the Corporation’s estimated sensitivity profile as of September 30, 2021. The change in interest rates assumes a parallel shift in interest rates of 100 and 200 basis points. Given a 100 basis point increase in rates, net interest income would increase 5.66% over the next 12 months and increase 9.52% over the following 12 months. Given a 100 basis point decrease in rates, net interest income would decrease 6.21% over the next 12 months and decrease 9.82% over the following 12 months. These estimates assume all rate changes occur overnight and management takes no action as a result of this change.

Basis Point |  | Percentage Change in Net Interest Income
Interest Rate Change |  | 12 months |  | 24 months |  | 36 months
Down 100 |  | -6.21 |  |  | -9.82 |  |  | -11.78 |
Up 100 |  | 5.66 |  |  | 9.52 |  |  | 12.63 |
Up 200 |  | 7.17 |  |  | 14.24 |  |  | 20.49 |

Typical rate shock analysis does not reflect management’s ability to react and thereby reduce the effect of rate changes, and represents a worst-case scenario.
Liquidity Risk
Liquidity represents an institution’s ability to provide funds to satisfy demands from depositors, borrowers, and other creditors by either converting assets into cash or accessing new or existing sources of incremental funds. Generally the Corporation relies on deposits, loan repayments and repayments of investment securities as its primary sources of funds. The Corporation has $17.5 million of investments that mature throughout the next 12 months. The Corporation also anticipates $176.3 million of principal payments from mortgage-backed and other securities. Given the current rate environment, the Corporation anticipates $24.2 million in securities to be called within the next 12 months. The Corporation also has unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis and several correspondent banks. With these sources of funds, the Corporation currently anticipates adequate liquidity to meet the expected obligations of its customers.
Financial Condition
Comparing the first nine months of 2021 to the same period in 2020, loans, net of deferred loan costs, have decreased $274 million to $2.5 billion. Deposits increased 11.8% to $4.03 billion at September 30, 2021 compared to September 30, 2020. Shareholders' equity decreased 2.00% or $12.2 million. This financial performance increased book value per share 4.41% to $46.22 at September 30, 2021 from $44.27 at September 30, 2020. Book value per share is calculated by dividing the total shareholders' equity by the number of shares outstanding.
39

Table of Contents
As a Small Business Administration lender, we were well positioned to assist business customers in accessing funds available through the Paycheck Protection Program (“PPP”) implemented in April 2020. Through September 30, 2021, we processed approximately $253 million of approved PPP loans. The carrying value of these loans is $41 million as of September 30, 2021.
Capital Adequacy
The Federal Reserve, OCC and Federal Deposit Insurance Corporation (collectively, joint agencies) establish regulatory capital guidelines for U.S. banking organizations. Regulatory capital guidelines require that capital be measured in relation to the credit and market risks of both on- and off-balance sheet items using various risk weights. On January 1, 2015, the Basel 3 rules became effective and include transition provisions through January 1, 2019. Under Basel 3, Total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of Common equity tier 1 capital and additional tier 1 capital.
Common equity tier 1 capital primarily includes qualifying common shareholders’ equity, retained earnings and certain minority interests. Goodwill, disallowed intangible assets and certain disallowed deferred tax assets are excluded from Common equity tier 1 capital.
Additional tier 1 capital primarily includes qualifying non-cumulative preferred stock, trust preferred securities (Trust Securities) subject to phase-out and certain minority interests. Certain deferred tax assets are also excluded.
Tier 2 capital primarily consists of qualifying subordinated debt, a limited portion of the allowance for loan and lease losses, Trust Securities subject to phase-out and reserves for unfunded lending commitments. The Corporation’s Total capital is the sum of Tier 1 capital plus Tier 2 capital.
To meet adequately capitalized regulatory requirements, an institution must maintain a Tier 1 capital ratio of 8.50 percent and a Total capital ratio of 10.50 percent. A “well-capitalized” institution must generally maintain capital ratios 200 bps higher than the minimum guidelines. The risk-based capital rules have been further supplemented by a Tier 1 leverage ratio, defined as Tier 1 capital divided by quarterly average total assets, after certain adjustments. BHCs must have a minimum Tier 1 leverage ratio of at least 4.0 percent. National banks must maintain a Tier 1 leverage ratio of at least 5.0 percent to be classified as “well capitalized.” Failure to meet the capital requirements established by the joint agencies can lead to certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Corporation’s financial position. Below are the capital ratios for the Corporation and lead bank.
The fully phased in capital conservation buffer set the minimum ratios for common equity Tier 1 capital at 7%, the Tier 1 capital at 8.5% and the total capital at 10.5%. Currently the Corporation exceeds all of these minimums.

| September 30, 2021 |  | December 31, 2020 |  | To Be Well Capitalized
Common equity tier 1 capital |  |  |  |  |
Corporation | 16.63 | % |  | 16.15 | % |  | N/A
First Financial Bank | 15.25 | % |  | 15.78 | % |  | 6.50 | %
Total risk-based capital |  |  |  |  |
Corporation | 17.88 | % |  | 17.40 | % |  | N/A
First Financial Bank | 16.49 | % |  | 17.03 | % |  | 10.00 | %
Tier I risk-based capital |  |  |  |  |
Corporation | 16.63 | % |  | 16.15 | % |  | N/A
First Financial Bank | 15.25 | % |  | 15.78 | % |  | 8.00 | %
Tier I leverage capital |  |  |  |  |
Corporation | 10.77 | % |  | 11.24 | % |  | N/A
First Financial Bank | 9.74 | % |  | 10.90 | % |  | 5.00 | %

40

Table of Contents
ITEM 4.Controls and Procedures
First Financial Corporation’s management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. As of September 30, 2021, an evaluation was performed under the supervision and with the participation of management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures. Based on that evaluation, management, including the principal executive officer and principal financial officer, concluded that the Corporation’s disclosure controls and procedures as of September 30, 2021 were effective in ensuring material information required to be disclosed in this Quarterly Report on Form 10-Q was recorded, processed, summarized, and reported on a timely basis. Additionally, there was no change in the Corporation's internal control over financial reporting that occurred during the quarter ended September 30, 2021 that has materially affected, or is reasonably likely to materially affect, the Corporation's internal control over financial reporting.
41

Table of Contents
PART II – Other Information
ITEM 1.Legal Proceedings.
There are no material pending legal proceedings, other than routine litigation incidental to the business of the Corporation or its subsidiaries, to which the Corporation or any of the subsidiaries is a party to or of which any of their respective property is subject. Further, there is no material legal proceeding in which any director, officer, principal shareholder, or affiliate of the Corporation or any of its subsidiaries, or any associate of such director, officer, principal shareholder or affiliate is a party, or has a material interest, adverse to the Corporation or any of its subsidiaries.
ITEM 1A.Risk Factors.
There have been no material changes in the risk factors from those disclosed in the Corporation’s 2020 Form 10-K filed for December 31, 2020.
ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds.
(a) None.
(b) Not applicable.
(c) Purchases of Equity Securities
The Corporation periodically acquires shares of its common stock directly from shareholders in individually negotiated transactions. On July 21, 2021 First Financial Corporation issued a press release announcing that its Board of Directors has authorized a stock repurchase program pursuant to which up to 5% of the Corporations outstanding shares of common stock, or approximately 652,411 shares may be repurchased.
Following is certain information regarding shares of common stock purchased by the Corporation during the quarter covered by this report.

|  |  |  |  | (c) |  |
|  |  |  |  | Total Number Of Shares |  |
|  |  |  |  | Purchased As Part Of |  | (c) Maximum
| (a) Total Number Of |  | (b) Average Price |  | Publicly Announced Plans |  | Number of Shares That May Yet
| Shares Purchased |  | Paid Per Share |  | Or Programs * |  | Be Purchased *
July 1-31, 2021 | — |  |  | — |  |  | — |  | —
August 1-31, 2021 | — |  |  | — |  |  | — |  | —
September 1-30, 2021 | 176,293 |  |  | 39.87 |  |  | 176,293 |  | 476,118
Total | 176,293 |  |  | 39.87 |  |  | 176,293 |  | 476,118

ITEM 3.Defaults upon Senior Securities.
Not applicable.
ITEM 4.Mine Safety Disclosures
Not applicable.
ITEM 5.Other Information.
Not applicable.
42

Table of Contents
ITEM 6.Exhibits.

Exhibit No.: | Description of Exhibit:
3.1 | Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3(i) of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
3.2 | Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3(ii) of the Corporation’s Form 8-K filed on August 24, 2012.
3.3 | Resolution to Amend Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3(iii) of the Corporation’s Form 8-K filed on April 13, 2020.
10.1* | Employment Agreement for Norman L. Lowery, dated and effective July 1, 2021, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on July 1, 2021.
10.2* | 2001 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
10.5* | 2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.7 of the Corporation’s Form 8-K filed on September 4, 2007.
10.6* | 2005 Executives Deferred Compensation Plan, incorporated by reference to Exhibit 10.5 of the Corporation’s Form 8-K filed on September 4, 2007.
10.7* | 2005 Executives Supplemental Retirement Plan, incorporated by reference to Exhibit 10.6 of the Corporation’s Form 8-K filed on September 4, 2007.
10.9* | First Financial Corporation 2010 Long-Term Incentive Compensation Plan incorporated by reference to Exhibit 10. 9 of the Corporation’s Form 10-K filed March 15, 2011.
10.10* | First Financial Corporation 2011 Short-Term Incentive Compensation Plan incorporated by reference to Exhibit 10.10 of the Corporation’s Form 10-K filed March 15, 2011.
10.11* | First Financial Corporation Amended and Restated 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K for the annual meeting filed on April 27, 2021.
10.12* | Form of Restricted Stock Award Agreement under the First Financial Corporation 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.12 of the Corporation's Form 10-Q for the quarter ended March 31, 2012 filed on May 10, 2012.
10.13* | Employment Agreement for Norman D. Lowery, effective July 1, 2021, incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed July 1, 2021.
10.14* | Employment Agreement for Rodger A. McHargue, effective July 1, 2021, incorporated by reference to Exhibit 10.2 of the Corporation’s Form 8-K filed July 1, 2021.
10.15* | Employment Agreement for Steven H. Holliday, effective July 1, 2021, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 8-K filed July 1, 2021.
10.16* | Employment Agreement for Karen L. Stinson-Milienu, effective July 1, 2021, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 8-K filed July 1, 2021.
31.1 | Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 by Principal Executive Officer, dated November 3, 2021.
31.2 | Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 by Principal Financial Officer, dated November 3, 2021.
32.1 | Certification, dated November 3, 2021, of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005 on Form 10-Q for the quarter ended September 30, 2021.
101.1 | Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended September 30, 2021, formatted in XBRL pursuant to Rule 405 : (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareholders’ Equity, and (v) Notes to Consolidated Financial Statements, as blocks of text and in detail**.

*Management contract or compensatory plan or arrangement.
**Furnished, not filed, for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.
43

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|  |  | FIRST FINANCIAL CORPORATION
|  |  | (Registrant)
Date: | November 3, 2021 |  | By /s/ Norman L. Lowery
|  |  | Norman L. Lowery, Chairman, President and CEO
|  |  | (Principal Executive Officer)
Date: | November 3, 2021 |  | By /s/ Rodger A. McHargue
|  |  | Rodger A. McHargue, Treasurer and CFO
|  |  | (Principal Financial Officer)

44