LOANS AND LEASES

3 Months Ended

Mar. 31, 2024

First Financial offers clients a variety of commercial and consumer loan and lease products with diverse interest rates and payment terms. Commercial loan categories include C&I, CRE, construction real estate and lease financing. Consumer loan categories include residential real estate, home equity, installment and credit card.

Lending activities are primarily concentrated in states where the Bank operates banking centers (Ohio, Indiana, Kentucky and Illinois). First Financial also has certain specialty lending platforms that extend beyond the geographic banking center footprint. These specialty finance businesses provide insurance premium financing, equipment lease financing and financing to franchise owners and clients within the financial services industry.

Credit Quality. To facilitate the monitoring of credit quality for commercial loans, First Financial utilizes the following categories of credit grades:

Pass - Higher quality loans that do not fit any of the other categories described below.

Special Mention - First Financial assigns a special mention rating to loans and leases with potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan, lease or First Financial's credit position at some future date.

Substandard - First Financial assigns a substandard rating to loans or leases that are inadequately protected by the current sound financial worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans and leases have well-defined weaknesses that jeopardize repayment of the debt. Substandard loans and leases are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not addressed.

Doubtful - First Financial assigns a doubtful rating to loans and leases with all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans.

The credit grades previously described are derived from standard regulatory rating definitions and are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

First Financial considers repayment performance to be the best indicator of credit quality for consumer loans. Consumer loans that have principal and interest payments that are past due by 90 days or more are generally classified as nonperforming. In 2022 and all years prior that are presented below, consumer loans that had been modified in a TDR were classified as nonperforming.

The following table sets forth the Company's loan portfolio at March 31, 2024 by risk attribute and origination date as well as current period gross chargeoffs:


(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	851,420	$	813,714	$	381,849	$	250,566	$	310,397	$	97,382	$	2,705,328	$	763,541	$	3,468,869
Special mention	1,428		11,177		810		774		16,139		0		30,328		10,193		40,521
Substandard	3,212		23,504		15,243		405		11,339		190		53,893		28,145		82,038
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	856,060	$	848,395	$	397,902	$	251,745	$	337,875	$	97,572	$	2,789,549	$	801,879	$	3,591,428
YTD Gross chargeoffs	$	0	$	169	$	1,046	$	82	$	65	$	1,333	$	2,695	$	0	$	2,695
Lease financing
Pass	$	296,467	$	126,286	$	15,991	$	8,620	$	3,903	$	25,658	$	476,925	$	0	$	476,925
Special mention	4,515		7,628		0		0		0		0		12,143		0		12,143
Substandard	170		764		87		0		2,773		0		3,794		0		3,794

Total	$	301,152	$	134,678	$	16,078	$	8,620	$	6,676	$	25,658	$	492,862	$	0	$	492,862
YTD Gross chargeoffs	$	0	$	0	$	0	$	3	$	0	$	0	$	3	$	0	$	3
Construction real estate
Pass	$	207,191	$	262,016	$	116,097	$	1,041	$	6,128	$	19,089	$	611,562	$	1,071	$	612,633
Special mention	0		0		0		16,588		12,375		0		28,963		0		28,963
Substandard	0		0		0		0		0		0		0		0		0

Total	$	207,191	$	262,016	$	116,097	$	17,629	$	18,503	$	19,089	$	640,525	$	1,071	$	641,596
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - investor
Pass	$	475,608	$	593,740	$	457,647	$	258,943	$	1,125,418	$	152,336	$	3,063,692	$	30,139	$	3,093,831
Special mention	0		10,600		9,091		280		50,407		0		70,378		0		70,378
Substandard	0		0		0		5,325		30,618		0		35,943		0		35,943
Doubtful	0		0		0		0		0		0		0		0		0


(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Total	$	475,608	$	604,340	$	466,738	$	264,548	$	1,206,443	$	152,336	$	3,170,013	$	30,139	$	3,200,152
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	788	$	4,531	$	5,319	$	0	$	5,319
Commercial real estate - owner
Pass	$	138,580	$	173,395	$	122,326	$	138,745	$	280,584	$	33,987	$	887,617	$	20,585	$	908,202
Special mention	0		0		3,407		85		15,257		0		18,749		0		18,749
Substandard	0		0		5,947		2,102		10,817		0		18,866		0		18,866

Total	$	138,580	$	173,395	$	131,680	$	140,932	$	306,658	$	33,987	$	925,232	$	20,585	$	945,817
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Residential real estate
Performing	$	347,008	$	220,697	$	251,735	$	185,921	$	301,620	$	21,728	$	1,328,709	$	0	$	1,328,709
Nonperforming	237		570		3,078		3,541		8,542		0		15,968		0		15,968
Total	$	347,245	$	221,267	$	254,813	$	189,462	$	310,162	$	21,728	$	1,344,677	$	0	$	1,344,677
YTD Gross chargeoffs	$	0	$	0	$	25	$	16	$	0	$	24	$	65	$	0	$	65
Home equity
Performing	$	28,006	$	22,443	$	28,145	$	31,994	$	29,944	$	6,706	$	147,238	$	619,832	$	767,070
Nonperforming	20		87		365		27		362		0		861		5,880		6,741
Total	$	28,026	$	22,530	$	28,510	$	32,021	$	30,306	$	6,706	$	148,099	$	625,712	$	773,811
YTD Gross chargeoffs	$	0	$	25	$	0	$	0	$	0	$	0	$	25	$	0	$	25
Installment
Performing	$	13,676	$	34,337	$	19,054	$	3,315	$	4,887	$	3,779	$	79,048	$	72,290	$	151,338
Nonperforming	129		1,220		470		23		11		26		1,879		621		2,500
Total	$	13,805	$	35,557	$	19,524	$	3,338	$	4,898	$	3,805	$	80,927	$	72,911	$	153,838
YTD Gross chargeoffs	$	0	$	281	$	1,261	$	624	$	40	$	30	$	2,236	$	0	$	2,236
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	60,737	$	60,737
Nonperforming	0		0		0		0		0		0		0		202		202
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	60,939	$	60,939
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	794	$	794
Total Loans	$	2,367,667	$	2,302,178	$	1,431,342	$	908,295	$	2,221,521	$	360,881	$	9,591,884	$	1,613,236	$	11,205,120
Total YTD Gross Chargeoffs	$	0	$	475	$	2,332	$	725	$	893	$	5,918	$	10,343	$	794	$	11,137

The following table sets forth the Company's loan portfolio at December 31, 2023 by risk attribute and origination date:


(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	848,448	$	736,213	$	414,460	$	265,143	$	113,296	$	226,970	$	2,604,530	$	774,080	$	3,378,610
Special mention	0		13,373		4,970		882		19,560		1,328		40,113		8,882		48,995
Substandard	3,133		21,505		11,483		1,205		1,023		9,990		48,339		25,277		73,616

Total	$	851,581	$	771,091	$	430,913	$	267,230	$	133,879	$	238,288	$	2,692,982	$	808,239	$	3,501,221
YTD Gross chargeoffs	$	10	$	2,978	$	7,267	$	7,055	$	936	$	929	$	19,175	$	0	$	19,175
Lease financing
Pass	$	261,064	$	186,997	$	6,404	$	1,189	$	2,222	$	523	$	458,399	$	0	$	458,399
Special mention	4,761		8,047		0		0		0		0		12,808		0		12,808
Substandard	1,407		1,961		97		0		145		0		3,610		0		3,610

Total	$	267,232	$	197,005	$	6,501	$	1,189	$	2,367	$	523	$	474,817	$	0	$	474,817
YTD Gross chargeoffs	$	0	$	0	$	4,423	$	0	$	0	$	0	$	4,423	$	0	$	4,423
Construction real estate
Pass	$	170,259	$	208,446	$	108,886	$	27,686	$	7,784	$	6,165	$	529,226	$	19,275	$	548,501
Special mention	0		0		0		16,331		0		0		16,331		0		16,331
Substandard	0		0		0		0		0		0		0		0		0

Total	$	170,259	$	208,446	$	108,886	$	44,017	$	7,784	$	6,165	$	545,557	$	19,275	$	564,832
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - investor
Pass	$	468,579	$	595,423	$	473,325	$	261,794	$	554,893	$	636,598	$	2,990,612	$	39,668	$	3,030,280
Special mention	7,894		9,345		12,134		110		32,756		14,204		76,443		0		76,443
Substandard	0		0		0		6,238		0		25,668		31,906		0		31,906

Total	$	476,473	$	604,768	$	485,459	$	268,142	$	587,649	$	676,470	$	3,098,961	$	39,668	$	3,138,629
YTD Gross chargeoffs	$	0	$	0	$	859	$	2,030	$	0	$	3,119	$	6,008	$	0	$	6,008
Commercial real estate - owner
Pass	$	138,932	$	175,336	$	130,240	$	138,919	$	86,182	$	215,458	$	885,067	$	22,639	$	907,706
Special mention	396		45		179		2,403		462		19,807		23,292		0		23,292
Substandard	0		0		3,919		835		1,324		5,234		11,312		0		11,312
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	139,328	$	175,381	$	134,338	$	142,157	$	87,968	$	240,499	$	919,671	$	22,639	$	942,310
YTD Gross chargeoffs	$	0	$	0	$	0	$	2,643	$	1	$	71	$	2,715	$	0	$	2,715
Residential real estate
Performing	$	325,304	$	234,583	$	255,964	$	188,212	$	101,663	$	210,583	$	1,316,309	$	0	$	1,316,309
Nonperforming	243		917		2,584		3,496		2,160		7,965		17,365		0		17,365
Total	$	325,547	$	235,500	$	258,548	$	191,708	$	103,823	$	218,548	$	1,333,674	$	0	$	1,333,674
YTD Gross chargeoffs	$	0	$	0	$	8	$	1	$	27	$	3	$	39	$	0	$	39
Home equity
Performing	$	28,979	$	23,175	$	29,084	$	32,917	$	9,883	$	22,419	$	146,457	$	606,183	$	752,640
Nonperforming	20		69		258		162		138		317		964		5,072		6,036
Total	$	28,999	$	23,244	$	29,342	$	33,079	$	10,021	$	22,736	$	147,421	$	611,255	$	758,676
YTD Gross chargeoffs	$	0	$	0	$	7	$	0	$	174	$	159	$	340	$	0	$	340
Installment
Performing	$	16,026	$	39,212	$	22,961	$	3,923	$	1,691	$	3,768	$	87,581	$	68,673	$	156,254
Nonperforming	196		1,142		742		12		12		30		2,134		690		2,824
Total	$	16,222	$	40,354	$	23,703	$	3,935	$	1,703	$	3,798	$	89,715	$	69,363	$	159,078
YTD Gross chargeoffs	$	168	$	3,189	$	2,903	$	154	$	5	$	23	$	6,442	$	0	$	6,442
Credit cards


(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	59,438	$	59,438
Nonperforming	0		0		0		0		0		0		0		501		501
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	59,939	$	59,939
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	1,173	$	1,173
Total Loans	$	2,275,641	$	2,255,789	$	1,477,690	$	951,457	$	935,194	$	1,407,027	$	9,302,798	$	1,630,378	$	10,933,176
Total YTD Gross Chargeoffs	$	178	$	6,167	$	15,467	$	11,883	$	1,143	$	4,304	$	39,142	$	1,173	$	40,315

Delinquency. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the date of the scheduled payment.

Loan delinquency, including loans classified as nonaccrual, was as follows:


	As of March 31, 2024
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total past due		Current		Total		> 89 days past due and still accruing
Loans
Commercial & industrial	$	2,048	$	1,015	$	3,695	$	6,758	$	3,584,670	$	3,591,428	$	0
Lease financing	1,041		368		617		2,026		490,836		492,862		617
Construction real estate	0		0		0		0		641,596		641,596		0
Commercial real estate-investor	7		0		17,364		17,371		3,182,781		3,200,152		0
Commercial real estate-owner	1,617		79		5,691		7,387		938,430		945,817		0
Residential real estate	4,169		1,561		2,697		8,427		1,336,250		1,344,677		0
Home equity	2,764		355		2,479		5,598		768,213		773,811		0
Installment	1,009		590		733		2,332		151,506		153,838		0
Credit card	789		272		202		1,263		59,676		60,939		203
Total	$	13,444	$	4,240	$	33,478	$	51,162	$	11,153,958	$	11,205,120	$	820


	As of December 31, 2023
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total past due		Current		Total		> 89 days past due and still accruing
Loans
Commercial & industrial	$	1,717	$	733	$	4,822	$	7,272	$	3,493,949	$	3,501,221	$	376
Lease financing	790		1,028		4,224		6,042		468,775		474,817		1,151
Construction real estate	0		0		0		0		564,832		564,832		0
Commercial real estate-investor	19		16,455		6,238		22,712		3,115,917		3,138,629		0
Commercial real estate-owner	269		205		5,290		5,764		936,546		942,310		0
Residential real estate	4,786		1,929		3,744		10,459		1,323,215		1,333,674		0
Home equity	1,998		1,082		1,919		4,999		753,677		758,676		0
Installment	1,157		864		669		2,690		156,388		159,078		0
Credit card	320		211		501		1,032		58,907		59,939		501
Total	$	11,056	$	22,507	$	27,407	$	60,970	$	10,872,206	$	10,933,176	$	2,028

Financial Difficulty Modifications. FDM might result when a borrower is in financial distress, and may be in the form of principal forgiveness, an interest rate reduction, a term extension or an other-than-insignificant payment delay. In some cases, the Company might provide multiple types of modifications for a single loan. One type of modification, such as delay, may be granted initially, however, if the borrower continues to experience financial difficulty, another modification, such as term extension and/or interest rate reduction might be granted. Loans included in the "combination" column in the table that follows have more than one modification made to the same loan within the current reporting period. Additionally, modifications with a term extension or interest rate reduction are intended to reduce the borrower’s monthly payment, while modifications with a payment delay, which typically allow borrowers to make monthly payments, interest only payments for a period of time, are structured to cure the payment defaults by making delinquent payments due at maturity. Payment deferrals may be up to one year and have minimal financial impact since the deferred payments are paid at maturity.

The following table provides the amortized cost basis, as of the period end date, of FDMs that were granted modifications during the three months ended March 31, 2024 and 2023:














	Three months ended March 31, 2024
(Dollars in thousands)	Principal forgiveness		Payment delay		Term extension		Interest rate reduction		Combination: Term extension and interest rate reduction		Total		Percent of total class of loans
Commercial & industrial	$	0	$	0	$	7,548	$	0	$	0	$	7,548	0.21	%




Residential real estate	0		556		0		0		0		556		0.04	%
Home equity	0		40		0		0		0		40		0.01	%

Total	$	0	$	596	$	7,548	$	0	$	0	$	8,144	0.07	%














	Three months ended March 31, 2023
(Dollars in thousands)	Principal forgiveness		Payment delay		Term extension		Interest rate reduction		Combination: Term extension and interest rate reduction		Total		Percent of total class of loans





Residential real estate	$	0	$	725	$	106	$	0	$	58	$	889	0.08	%
Home equity	0		0		0		0		15		15		0.00	%

Total	$	0	$	725	$	106	$	0	$	73	$	904	0.08	%

The following table provides the financial effect of FDMs granted during the three months ended March 31, 2024 and 2023:














	Three months ended March 31, 2024
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.00	%	0.2 years







Total	$	0	0.00	%	0.2 years














	Three months ended March 31, 2023
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension





Residential real estate	$	0	2.00	%	11.6 years
Home equity	0		0.31	%	22.6 years

Total	$	0	1.66	%	12.5 years

The Company has committed to lend no additional amounts to the borrowers who have been classified as FDM as of either March 31, 2024 or March 31, 2023. Additionally, there were three FDMs with a balance of $0.2 million that defaulted during the three months ended March 31, 2024 and were classified as FDMs during the twelve months preceding the default date. There were no FDMs that defaulted during the three months ended March 31, 2023.

The Company closely monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following table provides the performance of loans, as of the period end date, of FDMs granted during the twelve months preceding March 31, 2024.


	Twelve months ended March 31, 2024
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total
Commercial & industrial	$	7,897	$	0	$	0	$	2,266	$	10,163




Residential real estate	1,091		163		173		304		1,731
Home equity	130		67		0		21		218

Total	$	9,118	$	230	$	173	$	2,591	$	12,112

The following table presents the performance as of March 31, 2023 for FDMs granted since the January 1, 2023 adoption date.


	Three months ended March 31, 2023
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total





Residential real estate	$	889	$	0	$	0	$	0	$	889
Home equity	15		0		0		0		15

Total	$	904	$	0	$	0	$	0	$	904

Nonaccrual loans. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to the continued failure to adhere to contractual payment terms by the borrower, coupled with other pertinent factors. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan classified as nonaccrual may return to accrual status if none of the principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual principal and interest.

First Financial individually reviews all nonaccrual loan relationships greater than $250,000 to determine if a specific reserve is required based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Specific reserves are based on discounted cash flows using the loan's initial effective interest rate or the fair value of the collateral for certain collateral dependent loans.

The following table provides information on nonaccrual loans and leases:


	March 31, 2024						December 31, 2023
(Dollars in thousands)	Nonaccrual loans with a related ACL		Nonaccrual loans with no related ACL		Total nonaccrual		Nonaccrual loans with a related ACL		Nonaccrual loans with no related ACL		Total nonaccrual
Nonaccrual loans
Commercial & industrial	$	5,506	$	9,026	$	14,532	$	3,329	$	12,417	$	15,746
Lease financing	2,896		898		3,794		1,505		2,105		3,610
Construction real estate	0		0		0		0		0		0
Commercial real estate	0		23,055		23,055		16,356		11,628		27,984
Residential real estate	0		12,836		12,836		0		14,067		14,067
Home equity	0		4,036		4,036		0		3,476		3,476
Installment	0		984		984		0		870		870
Total nonaccrual loans	$	8,402	$	50,835	$	59,237	$	21,190	$	44,563	$	65,753

First Financial recognized interest income on nonaccrual loans and leases of $0.3 million for both the three months ended March 31, 2024 and March 31, 2023.

A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral. The following table presents the amortized cost basis of collateral dependent loans by class of loan.


	March 31, 2024
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	10,939	$	0	$	3,249	$	0	$	0	$	344	$	14,532
Lease financing	0		0		3,794		0		0		0		3,794
Commercial real estate-investor	0		17,365		0		0		0		0		17,365
Commercial real estate-owner	0		3,797		1,893		0		0		0		5,690
Residential real estate	0		0		0		0		12,836		0		12,836
Home equity	0		0		0		0		4,036		0		4,036
Installment	0		0		0		0		0		984		984
Total	$	10,939	$	21,162	$	8,936	$	0	$	16,872	$	1,328	$	59,237

	December 31, 2023
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	10,952	$	0	$	3,869	$	0	$	0	$	925	$	15,746
Lease financing	0		0		3,610		0		0		0		3,610
Commercial real estate-investor	0		22,694		0		0		0		0		22,694
Commercial real estate-owner	0		3,397		1,893		0		0		0		5,290
Residential real estate	0		0		0		0		14,067		0		14,067
Home equity	0		0		0		0		3,476		0		3,476
Installment	0		0		0		0		0		870		870
Total	$	10,952	$	26,091	$	9,372	$	0	$	17,543	$	1,795	$	65,753

Lease financing - Lessor. First Financial originates both sales-type and direct financing leases, and the Company manages and reviews lease residuals in accordance with its credit policies. Payments are generally fixed, however, in some agreements, lease payments are based on a rate or index plus a spread. Sales-type lease contracts contain the ability to purchase the underlying equipment at lease maturity and profit or loss is recognized at lease commencement. Direct financing leases are generally three to five years in length and may be extended at maturity, however, early cancellation may result in a fee to the borrower. For direct financing leases, the net unearned income is deferred and amortized over the life of the lease.

The components of the Company's net investments in direct financing and sales-type leases, which are included in Lease financing on the Consolidated Balance Sheets are as follows:


(Dollar in thousands)	March 31, 2024		December 31, 2023
Direct financing leases
Lease receivables	$	14,898	$	16,272
Unguaranteed residual values	11,798		11,402
Sales-type leases
Lease receivables	463,030		444,144
Unguaranteed residual values	3,136		2,999
Total net investment in direct financing and sales-type leases	$	492,862	$	474,817

Interest income for direct financing and sales-type leases was $8.4 million and $4.9 million for the three months ended March 31, 2024 and March 31, 2023, respectively.

The remaining maturities of lease receivables were as follows:


(Dollars in thousands)	Direct financing and Sales-type
Remainder of 2023	$	111,848
2024	142,499
2025	120,393
2026	92,857
2027	48,059
Thereafter	34,029
Total lease payments	549,685
Less: unearned interest income	(71,757)
Net lease receivables	$	477,928

OREO. OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, that results in partial or total satisfaction of problem loans.

Changes in OREO were as follows:


	Three months ended
	March 31,
(Dollars in thousands)		2024		2023
Balance at beginning of period		$	106	$	191
Additions
Commercial real estate		0		0
Residential real estate		55		0
Total additions		55		0
Disposals
Commercial real estate		0		0
Residential real estate		0		0
Total disposals		0		0
Valuation adjustment
Commercial real estate		0		0
Residential real estate		0		0
Total valuation adjustment		0		0
Balance at end of period		$	161	$	191