First Financial Corp 10-Q for FY2022 Q2

First Financial Corp (THFF)

10-Q 2022-08-03 For: 2022-06-30

Added on April 04, 2026

About this 10-Q

First Financial Corp filed this 10-Q on August 3, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $15.61M; down 6.0% from net income of $16.61M a year earlier
Diluted EPS: $1.27; up 2.4% from $1.24 a year earlier

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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)


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


			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			39

Item 4. Controls and Procedures			42

PART II. Other Information:

Item 1. Legal Proceedings			43

Item 1A. Risk Factors			43

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			43

Item 3. Defaults upon Senior Securities			43

Item 4. Mine Safety Disclosures			43

Item 5. Other Information			43

Item 6. Exhibits			44

Signatures			45


	June 30, 2022		December 31, 2021
	(unaudited)
ASSETS
Cash and due from banks	$	412,136	$	682,807
Federal funds sold	11,133		308
Securities available-for-sale	1,338,452		1,364,734
Loans:
Commercial	1,707,105		1,674,066
Residential	670,641		664,509
Consumer	509,781		474,026
	2,887,527		2,812,601
(Less) plus:
Net deferred loan (fees)/costs	4,961		3,294
Allowance for credit losses	(41,468)		(48,305)
	2,851,020		2,767,590
Restricted stock	15,620		16,200
Accrued interest receivable	16,701		16,946
Premises and equipment, net	69,022		69,522
Bank-owned life insurance	117,695		116,997
Goodwill	86,985		86,135
Other intangible assets	7,336		8,024
Other real estate owned	170		108
Other assets	80,378		45,728
TOTAL ASSETS	$	5,006,648	$	5,175,099

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	886,204	$	914,933
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits	60,311		74,015
Other interest-bearing deposits	3,436,742		3,420,621
	4,383,257		4,409,569
Short-term borrowings	84,232		93,374
Other borrowings	15,912		15,937
Other liabilities	61,716		73,643
TOTAL LIABILITIES	4,545,117		4,592,523

Shareholders’ equity
Common stock, $0.125 stated value per share;
Authorized shares-40,000,000
Issued shares-16,114,992 in 2022 and 16,096,313 in 2021
Outstanding shares-12,031,123 in 2022 and 12,629,893 in 2021	2,011		2,009
Additional paid-in capital	142,390		141,979
Retained earnings	589,169		559,139
Accumulated other comprehensive income/(loss)	(126,630)		(2,426)
Less: Treasury shares at cost-4,083,869 in 2022 and 3,466,420 in 2021	(145,409)		(118,125)
TOTAL SHAREHOLDERS’ EQUITY	461,531		582,576
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,006,648	$	5,175,099


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME:
Loans, including related fees	$	34,305	$	31,966	$	66,662	$	63,823
Securities:
Taxable	6,048		3,355		10,631		6,434
Tax-exempt	2,492		2,163		4,840		4,237
Other	358		387		723		733
TOTAL INTEREST INCOME	43,203		37,871		82,856		75,227
INTEREST EXPENSE:
Deposits	2,473		2,090		4,149		4,376
Short-term borrowings	176		94		258		192
Other borrowings	85		59		169		118
TOTAL INTEREST EXPENSE	2,734		2,243		4,576		4,686
NET INTEREST INCOME	40,469		35,628		78,280		70,541
Provision for credit losses	750		(2,196)		(5,800)		(1,744)
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES	39,719		37,824		84,080		72,285
NON-INTEREST INCOME:
Trust and financial services	1,300		1,313		2,672		2,618
Service charges and fees on deposit accounts	7,079		6,015		13,733		11,610
Other service charges and fees	222		406		328		822
Securities gains (losses), net	—		258		5		106
Interchange income	151		115		269		199

Loan servicing fees	368		788		727		1,141
Gain on sales of mortgage loans	603		1,450		1,265		2,843
Other	547		586		5,009		886
TOTAL NON-INTEREST INCOME	10,270		10,931		24,008		20,225
NON-INTEREST EXPENSE:
Salaries and employee benefits	15,668		16,031		33,010		31,708
Occupancy expense	2,372		2,002		4,894		4,151
Equipment expense	2,959		2,440		5,866		5,018
FDIC Expense	542		287		970		585
Other	9,133		7,236		17,278		14,173
TOTAL NON-INTEREST EXPENSE	30,674		27,996		62,018		55,635
INCOME BEFORE INCOME TAXES	19,315		20,759		46,070		36,875
Provision for income taxes	3,702		4,145		9,533		7,384
NET INCOME	15,613		16,614		36,537		29,491
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes	(55,919)		1,772		(124,833)		(9,296)
Change in funded status of post retirement benefits, net of taxes	314		472		629		944
COMPREHENSIVE INCOME (LOSS)	$	(39,992)	$	18,858	$	(87,667)	$	21,139
PER SHARE DATA
Basic and Diluted Earnings per Share	$	1.27	$	1.24	$	2.95	$	2.19
Weighted average number of shares outstanding (in thousands)	12,248		13,414		12,393		13,473


	Common Stock		Additional Capital		Retained Earnings		Accumulated Other Comprehensive Income/(Loss)		Treasury Stock		Total
Balance, April 1, 2021	$	2,008	$	141,024	$	533,980	$	(832)	$	(78,068)	$	598,112
Net income	—		—		16,614		—		—		16,614
Other comprehensive income (loss)	—		—		—		2,244		—		2,244
Omnibus Equity Incentive Plan	—		216		—		—		—		216
Treasury shares purchased (497,000 shares)	—		—		—		—		(22,024)		(22,024)


Cash dividends, $.53 per share	—		—		(6,999)		—		—		(6,999)
Balance, June 30, 2021	$	2,008	$	141,240	$	543,595	$	1,412	$	(100,092)	$	588,163

Balance, April 1, 2022	$	2,010	$	142,185	$	580,063	$	(71,025)	$	(127,789)	$	525,444
Net income	—		—		15,613		—		—		15,613
Other comprehensive income (loss)	—		—		—		(55,605)		—		(55,605)
Omnibus Equity Incentive Plan	1		205		—		—		—		206
Treasury shares purchased (404,186 shares)	—		—		—		—		(17,620)		(17,620)

Cash dividends, $.54 per share	—		—		(6,507)		—		—		(6,507)
Balance, June 30, 2022	$	2,011	$	142,390	$	589,169	$	(126,630)	$	(145,409)	$	461,531


Allowance for Credit Losses:	June 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	17,300	$	13,235	$	9,662	$	319	$	40,516
Provision for credit losses	(1,392)		895		1,319		(72)		750
Loans charged-off	(370)		(56)		(1,985)		—		(2,411)
Recoveries	931		94		1,588		—		2,613
Ending Balance	$	16,469	$	14,168	$	10,584	$	247	$	41,468


Allowance for Credit Losses:	June 30, 2021
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	13,739	$	18,839	$	11,058	$	164	$	43,800
Provision for credit losses	(1,058)		(928)		(260)		50		(2,196)
Loans charged-off	(113)		(243)		(795)		—		(1,151)
Recoveries	149		169		985		—		1,303
Ending Balance	$	12,717	$	17,837	$	10,988	$	214	$	41,756


	June 30, 2022
	Loans Past Due Over 90 Days Still				Nonaccrual With No Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	—	$	734	$	322
Farmland	—		304		—
Non Farm, Non Residential	—		2,521		2,508
Agriculture	—		451		—
All Other Commercial	—		4		—
Residential
First Liens	755		1,687		5
Home Equity	75		85		—
Junior Liens	106		208		—
Multifamily	—		241		—
All Other Residential	—		113		—
Consumer
Motor Vehicle	68		1,426		—
All Other Consumer	3		609		—
TOTAL	$	1,007	$	8,383	$	2,835


	December 31, 2021
	Loans Past Due Over 90 Days Still				Nonaccrual With No Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	14	$	1,950	$	1,662
Farmland	—		15		—
Non Farm, Non Residential	—		2,911		2,898
Agriculture	—		111		—
All Other Commercial	—		4		—
Residential
First Liens	346		2,339		33
Home Equity	—		84		—
Junior Liens	89		294		—
Multifamily	—		225		—
All Other Residential	—		107		—
Consumer
Motor Vehicle	94		864		—
All Other Consumer	—		686		—
TOTAL	$	543	$	9,590	$	4,593


		June 30, 2022
		Collateral Type
(Dollar amounts in thousands)		Real Estate		Other
Commercial
	Commercial & Industrial	$	5,891	$	323
	Farmland	3,330
	Non Farm, Non Residential	13,460
	Agriculture	—		—
	All Other Commercial	—		—
Residential
	First Liens	5		—
	Home Equity	—		—
	Junior Liens	—		—
	Multifamily	916		—
	All Other Residential	—		—
Consumer
	Motor Vehicle	—		—
	All Other Consumer	—		—
Total		$	23,602	$	323


	June 30, 2022
	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	$	4,641	$	616	$	114	$	5,371	$	688,504	$	693,875
Farmland	116		56		289		461		125,314		125,775
Non Farm, Non Residential	374		14		—		388		374,629		375,017
Agriculture	—		—		—		—		117,755		117,755
All Other Commercial	75		117		—		192		401,242		401,434
Residential
First Liens	1,062		857		1,174		3,093		330,319		333,412
Home Equity	147		190		114		451		62,484		62,935
Junior Liens	213		108		189		510		53,079		53,589
Multifamily	68		67		—		135		191,493		191,628
All Other Residential	—		—		—		—		30,769		30,769
Consumer
Motor Vehicle	10,431		1,650		550		12,631		465,968		478,599
All Other Consumer	238		50		20		308		33,027		33,335
TOTAL	$	17,365	$	3,725	$	2,450	$	23,540	$	2,874,583	$	2,898,123


			June 30, 2022
			Term Loans at Amortized Cost Basis by Origination Year						Revolving
			2022	2021	2020	2019	2018	Prior	Loans	Total
Commercial
	Commercial and Industrial	Pass	$81,025	$149,492	$61,094	$65,887	$31,721	$109,210	$140,793	$639,222
		Special Mention	1,489	3,165	206	4,123	2,847	4,263	72	$16,165
		Substandard	—	424	1,497	447	2,648	6,096	14,596	$25,708
		Doubtful	—	—	—	52	—	—	—	$52
		Not Rated	6,798	1,879	1,085	736	270	146	—	$10,914
		Subtotal	$89,312	$154,960	$63,882	$71,245	$37,486	$119,715	$155,461	$692,061

	Farmland	Pass	$7,471	$23,441	$10,308	$10,610	$11,128	$52,240	$290	$115,488
		Special Mention	—	—	1,191	882	—	3,922	—	$5,995
		Substandard	—	—	—	289	56	2,261	—	$2,606
		Doubtful	—	—	—	—	—	76	—	$76
		Not Rated	—	—	—	—	—	20	—	$20
		Subtotal	$7,471	$23,441	$11,499	$11,781	$11,184	$58,519	$290	$124,185

	Non Farm, Non Residential	Pass	$53,042	$78,738	$32,040	$21,975	$32,250	$125,503	$8,012	$351,560
		Special Mention	—	—	—	941	—	376	—	$1,317
		Substandard	—	1,738	—	543	2,408	16,476	—	$21,165
		Doubtful	—	—	—	—	—	—	—	$0
		Not Rated	—	—	—	—	—	311	—	$311
		Subtotal	$53,042	$80,476	$32,040	$23,459	$34,658	$142,666	$8,012	$374,353

	Agriculture	Pass	$5,818	$10,025	$8,730	$9,156	$1,996	$19,726	$53,576	$109,027
		Special Mention	89	—	10	5	—	799	3,736	$4,639
		Substandard	—	—	—	597	—	393	1,370	$2,360
		Doubtful	—	—	—	—	—	—	—	$0
		Not Rated	79	101	89	75	32	—	—	$376
		Subtotal	$5,986	$10,126	$8,829	$9,833	$2,028	$20,918	$58,682	$116,402

	Other Commercial	Pass	$97,758	$64,636	$82,886	$20,245	$29,738	$89,207	$3,282	$387,752
		Special Mention	—	—	—	—	—	11,171	—	$11,171
		Substandard	—	—	—	—	462	8	—	$470
		Doubtful	—	—	—	—	—	—	—	$0
		Not Rated	18	85	—	—	33	575	—	$711
		Subtotal	$97,776	$64,721	$82,886	$20,245	$30,233	$100,961	$3,282	$400,104

Residential
	Multifamily >5 Residential	Pass	$50,963	$31,102	$44,676	$12,281	$5,191	$37,204	$951	$182,368
		Special Mention	—	—	—	—	—	6,406	—	$6,406
		Substandard	—	—	—	—	—	964	—	$964
		Doubtful	—	—	—	—	—	—	—	$0
		Not Rated	—	1,137	—	—	—	267	—	$1,404
		Subtotal	$50,963	$32,239	$44,676	$12,281	$5,191	$44,841	$951	$191,142

Total		Pass	$296,077	$357,434	$239,734	$140,154	$112,024	$433,090	$206,904	$1,785,417
		Special Mention	1,578	3,165	1,407	5,951	2,847	26,937	3,808	$45,693
		Substandard	—	2,162	1,497	1,876	5,574	26,198	15,966	$53,273
		Doubtful	—	—	—	52	—	76	—	$128
		Not Rated	6,895	3,202	1,174	811	335	1,319	—	$13,736
Total commercial loans			$304,550	$365,963	$243,812	$148,844	$120,780	$487,620	$226,678	$1,898,247


	June 30, 2022
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Government agencies	$	117,937	$	39	$	(7,979)	$	109,997
Mortgage Backed Securities - residential	691,702		88		(78,592)		613,198
Mortgage Backed Securities - commercial	9,108		—		(147)		8,961
Collateralized mortgage obligations	223,190		25		(17,095)		206,120
State and municipal obligations	395,179		1,090		(37,893)		358,376
Municipal taxable	38,435		10		(5,044)		33,401
U.S. Treasury	2,084		—		(9)		2,075
Collateralized debt obligations	—		3,087		—		3,087
Other securities	3,237		—		—		3,237
TOTAL	$	1,480,872	$	4,339	$	(146,759)	$	1,338,452


	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	16,521	$	16,540
Due after one but within five years	45,794		45,110
Due after five but within ten years	82,851		79,055
Due after ten years	411,706		369,468
	556,872		510,173
Mortgage-backed securities and collateralized mortgage obligations	924,000		828,279
TOTAL	$	1,480,872	$	1,338,452


	Six Months Ended June 30,
	2022		2021
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	36,537	$	29,491
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments	3,609		4,080
Provision for credit losses	(5,800)		(1,744)
Securities (gains) losses	(5)		(106)
Gain on sales of mortgage loans	(1,265)		(2,843)
(Gain) Loss on sale of other real estate	19		16

Restricted stock compensation	413		421
Depreciation and amortization	3,100		3,142
Other, net	(3,990)		(4,937)
NET CASH FROM OPERATING ACTIVITIES	32,618		27,520
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities available-for-sale	—		9,369
Calls, maturities and principal reductions on securities available-for-sale	98,774		141,410
Purchases of securities available-for-sale	(238,453)		(364,598)
Loans made to customers, net of repayment	(75,090)		43,118
Redemption of restricted stock	1,617		—
Purchase of restricted stock	(1,037)		(13)
Purchase of bank owned life insurance	—		(10,000)

Proceeds from sales of other real estate owned	190		69
Net change in federal funds sold	(10,825)		(215)
Additions to premises and equipment	(1,912)		(4,114)
NET CASH FROM INVESTING ACTIVITIES	(226,736)		(184,974)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(25,624)		232,953
Net change in short-term borrowings	(9,142)		(17,536)
Maturities of other borrowings	(44)		—

Purchase of treasury stock	(27,284)		(23,390)
Dividends paid	(14,459)		(14,181)
NET CASH FROM FINANCING ACTIVITIES	(76,553)		177,846
NET CHANGE IN CASH AND CASH EQUIVALENTS	(270,671)		20,392
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD	682,807		657,470



			2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	$	407	$	3,686	$	706	$	4,799
Added/(Disposed)	305		128		(611)		(178)
Charged Off	—		—		—		—
Payments	(40)		(340)		(95)		(475)
June 30,	$	672	$	3,474	$	—	$	4,146



		2021
(Dollar amounts in thousands)	Commercial	Residential	Consumer	Total
January 1,	—	3,589	617	4,206
Added	—	491	122	613
Charged Off	—	(27)	(75)	(102)
Payments	—	(149)	(108)	(257)
June 30,	—	3,904	556	4,460


			June 30, 2022
			Term Loans at Amortized Cost Basis by Origination Year						Revolving
			2022	2021	2020	2019	2018	Prior	Loans	Total
Residential
	First Liens	Performing	$41,977	$68,440	$43,841	$19,263	$21,173	$133,208	$2,121	$330,023
		Non-performing	—	—	—	34	66	2,419	—	$2,519
		Subtotal	$41,977	$68,440	$43,841	$19,297	$21,239	$135,627	$2,121	$332,542

	Home Equity	Performing	$1,411	$862	$8	$122	$129	$1,284	$58,829	$62,645
		Non-performing	—	—	80	—	15	50	15	$160
		Subtotal	$1,411	$862	$88	$122	$144	$1,334	$58,844	$62,805

	Junior Liens	Performing	$10,470	$12,055	$8,695	$6,818	$6,395	$7,667	$1,064	$53,164
		Non-performing	—	—	66	—	74	173	—	$313
		Subtotal	$10,470	$12,055	$8,761	$6,818	$6,469	$7,840	$1,064	$53,477

	Other Residential	Performing	$6,103	$15,578	$4,997	$1,375	$598	$1,911	$0	$30,562
		Non-performing	—	—	—	52	39	22	—	$113
		Subtotal	$6,103	$15,578	$4,997	$1,427	$637	$1,933	$0	$30,675

Consumer
	Motor Vehicle	Performing	$145,103	$150,683	$116,862	$42,134	$14,775	$5,561	$—	$475,118
		Non-performing	65	541	475	253	63	52	—	$1,449
		Subtotal	$145,168	$151,224	$117,337	$42,387	$14,838	$5,613	$—	$476,567

	Other Consumer	Performing	$7,956	$10,825	$5,678	$1,920	$626	$1,022	$4,571	$32,598
		Non-performing	19	285	202	66	23	17	4	$616
		Subtotal	$7,975	$11,110	$5,880	$1,986	$649	$1,039	$4,575	$33,214

Total		Performing	$213,020	$258,443	$180,081	$71,632	$43,696	$150,653	$66,585	$984,110
		Non-performing	84	826	823	405	280	2,733	19	$5,170
Total other loans			$213,104	$259,269	$180,904	$72,037	$43,976	$153,386	$66,604	$989,280


	June 30, 2022
	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	$	97,256	$	(7,293)	$	4,068	$	(686)	$	101,324	$	(7,979)
Mortgage Backed Securities - Residential	451,262		(50,476)		158,530		(28,116)		609,792		(78,592)
Mortgage Backed Securities - Commercial	8,961		(147)		—		—		8,961		(147)
Collateralized mortgage obligations	164,325		(13,798)		21,350		(3,297)		185,675		(17,095)
State and municipal obligations	251,392		(35,790)		6,668		(2,103)		258,060		(37,893)
Municipal taxable	29,346		(4,542)		2,545		(502)		31,891		(5,044)
U.S. Treasury	2,075		(9)		—		—		2,075		(9)

Total temporarily impaired securities	$	1,004,617	$	(112,055)	$	193,161	$	(34,704)	$	1,197,778	$	(146,759)


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollar amounts in thousands)	2022		2021		2022		2021
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


	June 30, 2022
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	109,997	$	—	$	109,997
Mortgage Backed Securities-residential	—		613,198		—		613,198
Mortgage Backed Securities-commercial	—		8,961		—		8,961
Collateralized mortgage obligations	—		206,120		—		206,120
State and municipal	—		356,831		1,545		358,376
Municipal taxable	—		33,401		—		33,401
U.S. Treasury	—		2,075		—		2,075
Collateralized debt obligations	—		—		3,087		3,087
Other securities	—		1,743		1,494		3,237
TOTAL	$	—	$	1,332,326	$	6,126	$	1,338,452
Derivative Assets			1,564
Derivative Liabilities			(1,564)


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30, 2022
(Dollar amounts in thousands)	State and municipal obligations		Collateralized debt obligations		Other securities		Total
Beginning balance, April 1	$	1,545	$	3,531	$	1,743	$	6,819
Total realized/unrealized gains or losses
Included in earnings	—		—		—		—
Included in other comprehensive income	—		(444)		—		(444)
Transfers	—		—		—		—
Settlements	—		—		(249)		(249)
Ending balance, June 30	$	1,545	$	3,087	$	1,494	$	6,126



	Six Months Ended June 30, 2022
(Dollar amounts in thousands)	State and municipal obligations		Collateralized debt obligations		Other securities		Total
Beginning balance, January 1	$	1,895	$	3,359	$	1,743	$	6,997
Total realized/unrealized gains or losses
Included in earnings	—		—		—		—
Included in other comprehensive income	—		(272)		—		(272)
Transfers	—		—		—		—
Settlements	(350)		—		(249)		(599)
Ending balance, June 30	$	1,545	$	3,087	$	1,494	$	6,126


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended December 31, 2021
(Dollar amounts in thousands)	State and municipal obligations		Collateralized debt obligations		Other securities		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	—		223		—		223
Purchases	—		—		1,743		1,743
Settlements	—		—		—		—
Ending balance, December 31	$	1,895	$	3,359	$	1,743	$	6,997


(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,545	Discounted cash flow	Discount rate	3.73%-4.44%
Collateralized debt obligations	$	3,087	Discounted cash flow	Discount rate	2.67%
Other securities	$	1,494	Discounted cash flow	Discount rate	0.65%-1.15%
Collateral dependent loans	$	11,525	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00%


	June 30, 2022
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	412,136	$	25,623	$	386,513	$	—	$	412,136
Federal funds sold	11,133		—		11,133		—		11,133
Securities available-for-sale	1,338,452		—		1,332,326		6,126		1,338,452
Restricted stock	15,620		n/a		n/a		n/a		n/a
Loans, net	2,851,020		—		—		2,613,980		2,613,980
Accrued interest receivable	16,701		—		6,338		10,363		16,701
Deposits	(4,383,257)		—		(4,390,916)		—		(4,390,916)
Short-term borrowings	(84,232)		—		(84,232)		—		(84,232)
Other borrowings	(15,912)		—		(15,446)		—		(15,446)
Accrued interest payable	(543)		—		(543)		—		(543)


	June 30, 2022
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	$	76,142	$	150	$	143	$	5,447	$	81,882


(Dollar amounts in thousands)	As Initially Reported		Measurement Period Adjustments		As Adjusted
Consideration
Cash consideration	$	31,358	$	—	$	31,358

Fair value of total consideration transferred	$	31,358	$	—	$	31,358

Assets acquired
Cash	$	3,046	$	—	$	3,046
Investment securities available-for-sale	57,054		—		57,054
Federal funds sold	10,470		—		10,470
Bank owned life insurance	9,753		—		9,753
Federal Home Loan Bank stock	1,362		—		1,362
Loans	227,827		—		227,827
Premises and equipment	8,180		—		8,180
Core deposit intangibles	652		—		652
Other assets	4,567		(850)		3,717
Total assets acquired	322,911		(850)		322,061

Liabilities assumed
Deposits	286,098		—		286,098
FHLB advances	11,042		—		11,042
Other liabilities	1,956		—		1,956
Total liabilities assumed	299,096		—		299,096

Net identifiable assets	23,815		(850)		22,965

Goodwill	$	7,543	$	850	$	8,393


	Year ended December 31,
(Dollar amounts in thousands, except per share data)	2021		2020

Net interest income	$	150,806	$	156,051
Net income	$	53,714	$	55,958
Basic and diluted earnings per share	$	4.07	$	4.08


	Unrealized
	gains and		2022
	(Losses) on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, April 1,	$	(53,240)	$	(17,785)	$	(71,025)
Change in other comprehensive income (loss) before reclassification	(55,919)		—		(55,919)
Amounts reclassified from accumulated other comprehensive income	—		314		314

Net current period other comprehensive income (loss)	(55,919)		314		(55,605)
Ending balance, June 30,	$	(109,159)	$	(17,471)	$	(126,630)


	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	4/1/2022		Change		6/30/2022
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	(55,888)	$	(55,586)	$	(111,474)
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,648		(333)		2,315
Total unrealized loss on securities available-for-sale	$	(53,240)	$	(55,919)	$	(109,159)
Unrealized gain (loss) on retirement plans	(17,785)		314		(17,471)
TOTAL	$	(71,025)	$	(55,605)	$	(126,630)


(Dollar amounts in thousands)	Six Months Ended June 30, 2022
Operating lease cost	$	523
Short-term lease cost	103
Variable lease cost	9
Total lease cost	$	635

Other information:
Cash paid for amounts included in the measurement of operating lease liabilities	498
Right-of-use assets obtained in exchange for new operating lease liabilities	59


(Dollar amounts in thousands)		June 30, 2022
Twelve Months Ended June 30,
	2023	$	968
	2024	867
	2025	837
	2026	748
	2027	683
Thereafter		2,962
Total Future Minimum Lease Payments		7,065
Amounts Representing Interest		(761)
Present Value of Net Future Minimum Lease Payments		$	6,304


	(000's)
	June 30, 2022			December 31, 2021
Non-accrual loans	$	8,383		$	9,590
Accruing restructured loans	3,645			3,897
Nonaccrual restructured loans	501			902
Accruing loans past due over 90 days	980			515
	$	13,509		$	14,904
Ratio of the allowance for credit losses
as a percentage of non-performing loans	307.0		%	324.1		%


Basis Point	Percentage Change in Net Interest Income
Interest Rate Change	12 months		24 months		36 months
Down 200	-11.45	%	-21.62	%	-27.44	%
Down 100	-4.95		-9.69		-12.71
Up 100	3.98		7.25		10.01
Up 200	4.37		10.73		16.30


	June 30, 2022		December 31, 2021		To Be Well Capitalized
Common equity tier 1 capital
Corporation	13.51	%	14.37	%	N/A
First Financial Bank	11.72	%	13.53	%	6.50	%
Total risk-based capital
Corporation	14.65	%	15.63	%	N/A
First Financial Bank	12.86	%	14.78	%	10.00	%
Tier I risk-based capital
Corporation	13.51	%	14.37	%	N/A
First Financial Bank	11.72	%	13.53	%	8.00	%
Tier I leverage capital
Corporation	9.97	%	9.83	%	N/A
First Financial Bank	8.56	%	9.18	%	5.00	%


			(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 *
April 1-30, 2022	13,460	43.42	13,460	1,230,071
May 1-31, 2022	320,443	43.56	320,443	909,628
June 1-30, 2022	70,283	43.78	70,283	839,345
Total	404,186	45.31	404,186	839,345


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			Amended and Restated Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3.2 of the Corporation’s Form 8-K filed on February 22, 2021.
3.3			Articles of Amendment to the Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3.1 of the Corporation’s Form 8-K filed on April 27, 2021.
10.1*			Employment Agreement for Norman L. Lowery, dated and effective July 1, 2022, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on July 29, 2022.
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, 2022, incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed July 29, 2022.
10.14*			Employment Agreement for Rodger A. McHargue, effective July 1, 2022, incorporated by reference to Exhibit 10.2 of the Corporation’s Form 8-K filed July 29, 2022.
10.15*			Employment Agreement for Steven H. Holliday, effective July 1, 2022, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 8-K filed July 29, 2022.
10.1 6 *			Employment Agreement for Mark A. Franklin, effective July 1, 2022, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 8-K filed July 29, 2022.
31.1			Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 by Principal Executive Officer, dated August 3, 2022.
31.2			Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 by Principal Financial Officer, dated August 3, 2022.
32.1			Certification, dated August 3, 2022, 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 June 30, 2022.
101.1			Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended June 30, 2022, 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**.