10-Q

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 June 30, 2024

☐ 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 ☑  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 ☑   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	☑
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 ☑.

As of August 1, 2024, the registrant had outstanding 11,814,093 shares of common stock, without par value.

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	35
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

2

Part I – Financial Information

Item 1.Financial Statements

FIRST FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share data)

	June 30,		December 31,
	2024		2023
	(unaudited)
ASSETS
Cash and due from banks	$	75,073	$	76,759
Federal funds sold		24,000		282
Securities available-for-sale		1,205,751		1,259,137
Loans:
Commercial		1,782,646		1,817,526
Residential		748,044		695,788
Consumer		666,130		646,758
		3,196,820		3,160,072
(Less) plus:
Net deferred loan (fees)/costs		7,189		7,749
Allowance for credit losses		(38,334)		(39,767)
		3,165,675		3,128,054
Restricted stock		15,378		15,364
Accrued interest receivable		23,733		24,877
Premises and equipment, net		65,750		67,286
Bank-owned life insurance		114,767		114,122
Goodwill		86,985		86,985
Other intangible assets		5,116		5,586
Other real estate owned		170		107
Other assets		108,670		72,587
TOTAL ASSETS	$	4,891,068	$	4,851,146
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	748,495	$	750,335
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		112,679		92,921
Other interest-bearing deposits		3,271,153		3,246,812
		4,132,327		4,090,068
Short-term borrowings		38,211		67,221
Other borrowings		108,575		108,577
Other liabilities		81,285		57,304
TOTAL LIABILITIES		4,360,398		4,323,170
Shareholders’ equity
Common stock, $0.125 stated value per share; Authorized shares - 40,000,000; Issued shares-16,165,023 in 2024 and 16,137,220 in 2023; Outstanding shares - 11,814,093 in 2024 and 11,795,024 in 2023		2,016		2,014
Additional paid-in capital		144,632		144,152
Retained earnings		673,728		663,726
Accumulated other comprehensive loss		(134,501)		(127,087)
Less: Treasury shares at cost - 4,350,930 in 2024 and 4,342,196 in 2023		(155,205)		(154,829)
TOTAL SHAREHOLDERS’ EQUITY		530,670		527,976
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,891,068	$	4,851,146

See accompanying notes.

3

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Dollar amounts in thousands, except per share data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME:
Loans, including related fees	$	51,459	$	46,479	$	101,511	$	91,074
Securities:
Taxable		5,833		6,231		11,764		12,467
Tax-exempt		2,601		2,678		5,204		5,276
Other		878		841		1,695		2,112
TOTAL INTEREST INCOME		60,771		56,229		120,174		110,929
INTEREST EXPENSE:
Deposits		19,694		11,957		37,425		21,484
Short-term borrowings		959		1,294		1,935		2,102
Other borrowings		824		791		2,600		821
TOTAL INTEREST EXPENSE		21,477		14,042		41,960		24,407
NET INTEREST INCOME		39,294		42,187		78,214		86,522
Provision for credit losses		2,966		1,800		4,766		3,600
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES		36,328		40,387		73,448		82,922
NON-INTEREST INCOME:
Trust and financial services		1,318		1,185		2,652		2,502
Service charges and fees on deposit accounts		6,730		7,054		13,437		13,872
Other service charges and fees		286		196		509		400
Interchange income		135		—		314		47
Loan servicing fees		414		264		683		549
Gain on sales of mortgage loans		299		311		475		490
Other		723		1,443		1,266		1,968
TOTAL NON-INTEREST INCOME		9,905		10,453		19,336		19,828
NON-INTEREST EXPENSE:
Salaries and employee benefits		17,380		16,946		34,710		34,104
Occupancy expense		2,201		2,132		4,560		4,731
Equipment expense		4,312		3,525		8,456		6,824
FDIC Expense		501		577		1,163		1,364
Other		8,257		8,166		17,184		16,644
TOTAL NON-INTEREST EXPENSE		32,651		31,346		66,073		63,667
INCOME BEFORE INCOME TAXES		13,582		19,494		26,711		39,083
Provision for income taxes		2,213		3,507		4,418		7,116
NET INCOME		11,369		15,987		22,293		31,967
OTHER COMPREHENSIVE INCOME
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		3,535		(15,808)		(7,561)		(1,570)
Change in funded status of post retirement benefits, net of taxes		74		147		147		294
COMPREHENSIVE INCOME	$	14,978	$	326	$	14,879	$	30,691
PER SHARE DATA
Basic and Diluted Earnings per Share	$	0.96	$	1.33	$	1.89	$	2.66
Weighted average number of shares outstanding (in thousands)		11,814		12,022		11,809		12,040

See accompanying notes.

4

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Three Months Ended

June 30, 2024, and 2023

(Dollar amounts in thousands, except per share data)

(Unaudited)

							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Capital		Earnings		Income/(Loss)		Stock		Total
Balance, April 1, 2023	$	2,012	$	143,408	$	630,809	$	(125,589)	$	(145,141)	$	505,499
Net income		—		—		15,987		—		—		15,987
Other comprehensive income (loss)		—		—		—		(15,661)		—		(15,661)
Omnibus Equity Incentive Plan		1		224		—		—		—		225
Treasury shares purchased (82,903 shares)		—		—		—		—		(2,691)		(2,691)
Cash dividends, $.54 per share		—		—		(6,471)		—		—		(6,471)
Balance, June 30, 2023	$	2,013	$	143,632	$	640,325	$	(141,250)	$	(147,832)	$	496,888
Balance, April 1, 2024	$	2,015	$	144,391	$	667,675	$	(138,110)	$	(155,205)	$	520,766
Net income		—		—		11,369		—		—		11,369
Other comprehensive income (loss)		—		—		—		3,609		—		3,609
Omnibus Equity Incentive Plan		1		241		—		—		—		242
Cash dividends, $.45 per share		—		—		(5,316)		—		—		(5,316)
Balance, June 30, 2024	$	2,016	$	144,632	$	673,728	$	(134,501)	$	(155,205)	$	530,670

See accompanying notes.

5

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Six Months Ended

June 30, 2024, and 2023

(Dollar amounts in thousands, except per share data)

(Unaudited)

							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Capital		Earnings		Income/(Loss)		Stock		Total
Balance, January 1, 2023	$	2,012	$	143,185	$	614,829	$	(139,974)	$	(144,759)	$	475,293
Net income		—		—		31,967		—		—		31,967
Other comprehensive income (loss)		—		—		—		(1,276)		—		(1,276)
Omnibus Equity Incentive Plan		1		447		—		—		—		448
Treasury shares purchased (91,207 shares)		—		—		—		—		(3,073)		(3,073)
Cash dividends, $.54 per share		—		—		(6,471)		—		—		(6,471)
Balance, June 30, 2023	$	2,013	$	143,632	$	640,325	$	(141,250)	$	(147,832)	$	496,888
Balance, January 1, 2024	$	2,014	$	144,152	$	663,726	$	(127,087)	$	(154,829)	$	527,976
Cumulative change in accounting principle ASU 2023-02		—		—		(1,659)		—		—		(1,659)
Net income		—		—		22,293		—		—		22,293
Other comprehensive income (loss)		—		—		—		(7,414)		—		(7,414)
Omnibus Equity Incentive Plan		2		480		—		—		—		482
Treasury shares purchased (8,734 shares)		—		—		—		—		(376)		(376)
Cash dividends, $.90 per share		—		—		(10,632)		—		—		(10,632)
Balance, June 30, 2024	$	2,016	$	144,632	$	673,728	$	(134,501)	$	(155,205)	$	530,670

6

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands, except per share data)

	Six Months Ended
	June 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	22,293	$	31,967
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments		2,411		2,550
Provision for credit losses		4,766		3,600
Depreciation and amortization		3,308		3,250
Restricted stock compensation		482		448
Gain on sale of mortgage loans		(475)		(490)
(Gain) Loss on sale of other real estate		(62)		14
Other, net		(11,510)		(3,613)
NET CASH FROM OPERATING ACTIVITIES		21,213		37,726
CASH FLOWS FROM INVESTING ACTIVITIES:
Calls, maturities and principal reductions on securities available-for-sale		50,182		56,322
Purchases of securities available-for-sale		(8,615)		(29,653)
Loans made to customers, net of repayment		(42,002)		(69,656)
Net change in federal funds sold		(23,718)		9,011
Purchase of restricted stock		(14)		(13)
Proceeds from sales of other real estate owned		268		217
Additions to premises and equipment		(1,302)		(3,595)
NET CASH FROM INVESTING ACTIVITIES		(25,201)		(37,367)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits		42,308		(305,309)
Net change in short-term borrowings		(29,010)		57,984
Dividends paid		(10,620)		(15,383)
Purchase of treasury stock		(376)		(3,073)
Proceeds from other borrowings		1,150,000		680,000
Maturities of other borrowings		(1,150,000)		(555,000)
NET CASH FROM FINANCING ACTIVITIES		2,302		(140,781)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(1,686)		(140,422)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD		76,759		222,517
CASH AND DUE FROM BANKS, END OF PERIOD	$	75,073	$	82,095

See accompanying notes.

7

FIRST FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The accompanying June 30, 2024 and 2023 consolidated financial statements are unaudited. The December 31, 2023 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2023 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, 2023.

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.

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 six months ended 2024 and 2023, 27,803 and 22,228 shares were awarded, respectively. These shares had a grant date value of $1.0 million and $1.0 million for 2024 and 2023, 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.    New accounting standards

Accounting Pronouncements Adopted:

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 is effective for the Corporation for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption is permitted. The Corporation adopted ASU 2022-03 January 1, 2024, and it had no impact on its consolidated financial statements and related disclosures.

In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASU) No. 2023-02 “Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This guidance is effective for public business entities for fiscal years including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted in any interim period. The Corporation adopted ASU 2023-02 January 1, 2024 on a modified retrospective basis. As a result of the adoption, other assets was increased $19 million, other liabilities was increased $21 million, and retained earnings was decreased $1.7 million.

Recent Accounting Pronouncements:

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” These amendments require, among other things, that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 208. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all periods presented in the financial statements. The Corporation is assessing ASU 2023-07 and its effect on its consolidated financial statements and related disclosures.

8

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” Among other things, these amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate.) The amendments also require that all entities disclose on an annual basis the following information about income taxes paid: (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received.) This guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis although retrospective application is permitted. The Corporation is assessing ASU 2023-09 and its effect on its consolidated financial statements and related disclosures.

9

3.    Allowance for Credit Losses

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

Allowance for Credit Losses:			June 30, 2024
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	13,579	$	14,233	$	11,919	$	314	$	40,045
Provision for credit losses		1,811		93		1,367		(305)		2,966
Loans charged-off		(3,548)		(42)		(2,501)		—		(6,091)
Recoveries		173		40		1,201		—		1,414
Ending Balance	$	12,015	$	14,324	$	11,986	$	9	$	38,334

Allowance for Credit Losses:			June 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,790	$	15,059	$	11,513	$	258	$	39,620
Provision for credit losses		(377)		166		1,733		278		1,800
Loans charged-off		(209)		(63)		(3,271)		—		(3,543)
Recoveries		246		106		1,678		—		2,030
Ending Balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907

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

Allowance for Credit Losses:			June 30, 2024
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	13,264	$	14,327	$	11,797	$	379	$	39,767
Provision for credit losses		2,082		(80)		3,134		(370)		4,766
Loans charged -off		(3,779)		(56)		(5,448)		—		(9,283)
Recoveries		448		133		2,503		—		3,084
Ending Balance	$	12,015	$	14,324	$	11,986	$	9	$	38,334

Allowance for Credit Losses:			June 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,949	$	14,568	$	12,104	$	158	$	39,779
Provision for credit losses		(431)		666		2,987		378		3,600
Loans charged -off		(515)		(142)		(7,262)		—		(7,919)
Recoveries		447		176		3,824		—		4,447
Ending Balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907

10

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

	June 30, 2024
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	303	$	6,072	$	34
Farmland		—		1,218		1,201
Non Farm, Non Residential		112		907		476
Agriculture		—		934		893
All Other Commercial		—		996		980
Residential
First Liens		567		963		32
Home Equity		136		111		—
Junior Liens		262		74		—
Multifamily		—		426		373
All Other Residential		—		407		348
Consumer
Motor Vehicle		—		2,218		—
All Other Consumer		—		237		—
TOTAL	$	1,380	$	14,563	$	4,337

	December 31, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	5	$	13,971	$	860
Farmland		—		1,221		1,201
Non Farm, Non Residential		—		995		1,011
Agriculture		—		1,147		1,103
All Other Commercial		—		1,046		1,027
Residential
First Liens		620		960		—
Home Equity		32		68		—
Junior Liens		239		67		—
Multifamily		47		543		373
All Other Residential		—		427		—
Consumer
Motor Vehicle		45		2,933		—
All Other Consumer		—		218		—
TOTAL	$	988	$	23,596	$	5,575

11

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

	June 30, 2024
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	598	$	5,117
Farmland		1,620		—
Non Farm, Non Residential		3,759		—
Agriculture		—		893
All Other Commercial		980		—
Residential
First Liens		32		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		348		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	7,710	$	6,010

	December 31, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	1,454	$	12,056
Farmland		1,633		—
Non Farm, Non Residential		3,919		—
Agriculture		49		1,054
All Other Commercial		1,027		—
Residential
First Liens		32		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		349		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	8,836	$	13,110

12

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

	June 30, 2024
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	616	$	1,273	$	1,844	$	3,733	$	532,154	$	535,887
Farmland		362		—		1,202		1,564		128,966		130,530
Non Farm, Non Residential		—		304		114		418		538,947		539,365
Agriculture		262		—		930		1,192		128,050		129,242
All Other Commercial		14		—		—		14		459,116		459,130
Residential
First Liens		678		921		876		2,475		362,596		365,071
Home Equity		314		389		220		923		66,824		67,747
Junior Liens		384		60		283		727		59,041		59,768
Multifamily		—		166		373		539		236,145		236,684
All Other Residential		—		211		377		588		20,859		21,447
Consumer
Motor Vehicle		9,561		1,312		590		11,463		626,746		638,209
All Other Consumer		442		103		67		612		30,445		31,057
TOTAL	$	12,633	$	4,739	$	6,876	$	24,248	$	3,189,889	$	3,214,137

	December 31, 2023
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	668	$	488	$	1,136	$	2,292	$	649,801	$	652,093
Farmland		58		—		1,201		1,259		132,147		133,406
Non Farm, Non Residential		—		—		—		—		439,009		439,009
Agriculture		—		—		1,141		1,141		139,900		141,041
All Other Commercial		—		—		—		—		464,776		464,776
Residential
First Liens		2,841		816		924		4,581		354,711		359,292
Home Equity		360		188		71		619		65,191		65,810
Junior Liens		462		124		262		848		57,985		58,833
Multifamily		117		140		373		630		191,104		191,734
All Other Residential		554		—		47		601		21,961		22,562
Consumer
Motor Vehicle		12,491		1,754		761		15,006		602,442		617,448
All Other Consumer		397		102		13		512		31,857		32,369
TOTAL	$	17,948	$	3,612	$	5,929	$	27,489	$	3,150,884	$	3,178,373

13

Loan Modifications Made to Borrowers Experiencing Financial Difficulty:

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.

The following table presents the amortized cost of loans and leases at June 30, 2024 that were both experiencing financial difficulty and modified during the twelve months ended June 30, 2024, by class and by type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each class of financial receivable is also presented below.

										Combination		Combination
										Term		Term		Total
										Extension and		Extension		Class of
	Principal		Payment		Term		Interest Rate			Principal		Interest Rate		Financing
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivable
Residential
First Liens	$	—	$	—	$	—	$	—	$	—	$	25		0.01	%
Junior Liens		—		—		28		—		—		—		0.05	%
Consumer
Motor Vehicle		27		—		293		27		110		107		0.09	%
TOTAL	$	27	$	—	$	321	$	27	$	110	$	132		0.02	%

The Corporation has no commitments to lend additional amounts to the borrowers included in the table above.

The Corporation closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months:

	June 30, 2024
	30 - 59		60 - 89		Greater Than
	Days		Days		89 Days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due
Consumer
Motor Vehicle	$	2	$	19	$	7	$	28
TOTAL	$	2	$	19	$	7	$	28

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the twelve months ended June 30, 2024.

			Weighted-			Weighted-
			Average			Average
	Principal		Interest Rate			Term
(Dollar amounts in thousands)	Forgiveness		Reduction			Extension
Residential
First Liens	$	—		2.75	%		24
Junior Liens		—		—			36
Consumer
Motor Vehicle		56		2.89	%		21
TOTAL	$	56		2.87	%		22

14

The following table presents the amortized cost basis of loans that had a payment default during the twelve months ended June 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

	Principal		Payment		Term		Interest Rate
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction
Consumer
Motor Vehicle	$	—	$		$	28	$	—
TOTAL	$	—	$	—	$	28	$	—

Upon the Corporation’s determination that a modified loan has subsequently been deemed uncollectible, the loan is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

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

The following tables present the commercial loan portfolio by risk category. These balances do not include accrued interest:

		June 30, 2024
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2024		2023		2022		2021		2020		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	52,615	$	39,032	$	114,470	$	73,432	$	36,682	$	98,079	$	72,107	$	486,417
	Special Mention		—		8,175		715		9,749		3,318		1,375		2,593	$	25,925
	Substandard		3,615		707		1,700		4,140		132		7,048		—	$	17,342
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		863		1,131		993		531		278		125		—	$	3,921
	Subtotal	$	57,093	$	49,045	$	117,878	$	87,852	$	40,410	$	106,627	$	74,700	$	533,605
	Current period gross charge-offs	$	-	$	-	$	105	$	3,264	$	10	$	48	$	-	$	3,427
Farmland	Pass	$	7,978	$	20,439	$	15,613	$	19,574	$	7,747	$	54,037	$	224	$	125,612
	Special Mention		—		—		—		—		—		1,047		—	$	1,047
	Substandard		—		—		—		—		40		1,710		—	$	1,750
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		14		—	$	14
	Subtotal	$	7,978	$	20,439	$	15,613	$	19,574	$	7,787	$	56,808	$	224	$	128,423
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	50,043	$	79,663	$	135,958	$	98,953	$	22,032	$	135,940	$	4,755	$	527,344
	Special Mention		—		—		700		975		—		827		—	$	2,502
	Substandard		662		55		184		—		—		6,248		—	$	7,149
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		668		64		—	$	732
	Subtotal	$	50,705	$	79,718	$	136,842	$	99,928	$	22,700	$	143,079	$	4,755	$	537,727
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	4,811	$	8,730	$	10,061	$	5,669	$	5,391	$	25,472	$	62,249	$	122,383
	Special Mention		—		—		84		—		5		599		2,640	$	3,328
	Substandard		—		—		53		—		—		903		—	$	956
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		11		—		34		26		29		4		—	$	104
	Subtotal	$	4,822	$	8,730	$	10,232	$	5,695	$	5,425	$	26,978	$	64,889	$	126,771
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	15,398	$	32,721	$	103,023	$	92,936	$	92,515	$	108,130	$	9,160	$	453,883
	Special Mention		—		—		—		—		—		795		—	$	795
	Substandard		—		—		980		14		—		—		—	$	994
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		10		—		—		438		—	$	448
	Subtotal	$	15,398	$	32,721	$	104,013	$	92,950	$	92,515	$	109,363	$	9,160	$	456,120
	Current period gross charge-offs	$	252	$	100	$	-	$	-	$	-	$	-	$	-	$	352
Residential
Multifamily >5 Residential	Pass	$	22,380	$	53,605	$	70,093	$	31,496	$	22,217	$	26,399	$	458	$	226,648
	Special Mention		—		—		232		—		350		6,397		—	$	6,979
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		1,090		—		680		—	$	1,770
	Subtotal	$	22,380	$	53,605	$	70,325	$	32,586	$	22,567	$	33,849	$	458	$	235,770
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	153,225	$	234,190	$	449,218	$	322,060	$	186,584	$	448,057	$	148,953	$	1,942,287
	Special Mention		—		8,175		1,731		10,724		3,673		11,040		5,233	$	40,576
	Substandard		4,277		762		2,917		4,154		172		16,282		—	$	28,564
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		874		1,131		1,037		1,647		975		1,325		—	$	6,989
		$	158,376	$	244,258	$	454,903	$	338,585	$	191,404	$	476,704	$	154,186	$	2,018,416

16

		December 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	80,873	$	131,522	$	112,811	$	47,445	$	44,257	$	100,872	$	81,551	$	599,331
	Special Mention		6		221		10,025		3,442		323		866		2,715	$	17,598
	Substandard		3,620		4,734		1,842		981		1,789		5,354		7,932	$	26,252
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		3,476		1,352		847		431		144		93		—	$	6,343
	Subtotal	$	87,975	$	137,829	$	125,525	$	52,299	$	46,513	$	107,185	$	92,198	$	649,524
	Current period gross charge-offs	$	8	$	72	$	40	$	78	$	24	$	49	$	-	$	271
Farmland	Pass	$	21,232	$	16,025	$	20,794	$	8,310	$	8,790	$	52,357	$	287	$	127,795
	Special Mention		—		—		4		—		363		710		—	$	1,077
	Substandard		—		—		—		41		309		1,370		—	$	1,720
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		14		—	$	14
	Subtotal	$	21,232	$	16,025	$	20,798	$	8,351	$	9,462	$	54,451	$	287	$	130,606
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	73,740	$	123,319	$	69,477	$	23,965	$	22,550	$	106,752	$	7,606	$	427,409
	Special Mention		—		732		995		—		845		—		—	$	2,572
	Substandard		102		—		—		—		479		6,356		—	$	6,937
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		678		—		65		—	$	743
	Subtotal	$	73,842	$	124,051	$	70,472	$	24,643	$	23,874	$	113,173	$	7,606	$	437,661
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	10,764	$	11,299	$	6,614	$	6,118	$	7,443	$	25,678	$	64,476	$	132,392
	Special Mention		—		86		—		8		—		605		3,618	$	4,317
	Substandard		—		55		—		—		50		1,067		—	$	1,172
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		51		31		35		24		—		—	$	141
	Subtotal	$	10,764	$	11,491	$	6,645	$	6,161	$	7,517	$	27,350	$	68,094	$	138,022
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	27,401	$	105,046	$	104,307	$	94,029	$	4,774	$	112,159	$	9,177	$	456,893
	Special Mention		—		—		—		2,478		—		830		—	$	3,308
	Substandard		—		1,027		16		—		—		—		—	$	1,043
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		12		—		—		—		457		—	$	469
	Subtotal	$	27,401	$	106,085	$	104,323	$	96,507	$	4,774	$	113,446	$	9,177	$	461,713
	Current period gross charge-offs	$	675	$	-	$	-	$	-	$	20	$	-	$	-	$	695
Residential
Multifamily >5 Residential	Pass	$	34,551	$	62,845	$	32,273	$	22,590	$	6,397	$	23,215	$	382	$	182,253
	Special Mention		—		—		—		357		—		6,571		—	$	6,928
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,102		—		—		251		—	$	1,353
	Subtotal	$	34,551	$	62,845	$	33,375	$	22,947	$	6,397	$	30,410	$	382	$	190,907
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	248,561	$	450,056	$	346,276	$	202,457	$	94,211	$	421,033	$	163,479	$	1,926,073
	Special Mention		6		1,039		11,024		6,285		1,531		9,582		6,333	$	35,800
	Substandard		3,722		5,816		1,858		1,022		2,627		14,520		7,932	$	37,497
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		3,476		1,415		1,980		1,144		168		880		—	$	9,063
		$	255,765	$	458,326	$	361,138	$	210,908	$	98,537	$	446,015	$	177,744	$	2,008,433

17

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 and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming. These balances do not include accrued interest:

		June 30, 2024
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2024		2023		2022		2021		2020		Prior		Loans		Total
Residential
First Liens	Performing	$	24,841	$	47,700	$	68,600	$	61,857	$	34,392	$	124,100	$	671	$	362,161
	Non-performing		—		—		—		408		64		1,182		—	$	1,654
	Subtotal	$	24,841	$	47,700	$	68,600	$	62,265	$	34,456	$	125,282	$	671	$	363,815
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	14	$	-	$	14
Home Equity	Performing	$	174	$	124	$	54	$	29	$	90	$	1,333	$	65,461	$	67,265
	Non-performing		—		—		75		—		16		83		73	$	247
	Subtotal	$	174	$	124	$	129	$	29	$	106	$	1,416	$	65,534	$	67,512
	Current period gross charge-offs	$	-	$	-	$	22	$	-	$	-	$	-	$	20	$	42
Junior Liens	Performing	$	6,875	$	13,693	$	13,889	$	7,245	$	5,525	$	10,532	$	1,501	$	59,260
	Non-performing		—		102		—		—		64		166		—	$	332
	Subtotal	$	6,875	$	13,795	$	13,889	$	7,245	$	5,589	$	10,698	$	1,501	$	59,592
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Residential	Performing	$	498	$	7,385	$	7,717	$	2,703	$	398	$	1,994	$	234	$	20,929
	Non-performing		—		—		—		—		—		425		—	$	425
	Subtotal	$	498	$	7,385	$	7,717	$	2,703	$	398	$	2,419	$	234	$	21,354
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	137,531	$	227,663	$	175,727	$	52,729	$	32,161	$	7,238	$	12	$	633,061
	Non-performing		4		408		894		349		413		113		—	$	2,181
	Subtotal	$	137,535	$	228,071	$	176,621	$	53,078	$	32,574	$	7,351	$	12	$	635,242
	Current period gross charge-offs	$	49	$	1,369	$	2,408	$	987	$	354	$	57	$	-	$	5,224
Other Consumer	Performing	$	6,148	$	9,019	$	4,822	$	2,729	$	1,680	$	824	$	5,395	$	30,617
	Non-performing		—		64		36		102		26		5		39	$	272
	Subtotal	$	6,148	$	9,083	$	4,858	$	2,831	$	1,706	$	829	$	5,434	$	30,889
	Current period gross charge-offs	$	-	$	62	$	57	$	5	$	7	$	9	$	84	$	224
Total	Performing	$	176,067	$	305,584	$	270,809	$	127,292	$	74,246	$	146,021	$	73,274	$	1,173,293
	Non-performing		4		574		1,005		859		583		1,974		112	$	5,111
Total other loans		$	176,071	$	306,158	$	271,814	$	128,151	$	74,829	$	147,995	$	73,386	$	1,178,404

18

		December 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	49,146	$	70,952	$	65,232	$	36,751	$	15,185	$	118,087	$	1,066	$	356,419
	Non-performing		—		121		—		65		57		1,504		—	$	1,747
	Subtotal	$	49,146	$	71,073	$	65,232	$	36,816	$	15,242	$	119,591	$	1,066	$	358,166
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	167	$	-	$	167
Home Equity	Performing	$	61	$	68	$	—	$	7	$	378	$	866	$	64,102	$	65,482
	Non-performing		—		22		—		17		—		60		—	$	99
	Subtotal	$	61	$	90	$	—	$	24	$	378	$	926	$	64,102	$	65,581
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	15,050	$	15,431	$	8,248	$	5,557	$	4,280	$	8,094	$	1,698	$	58,358
	Non-performing		—		53		45		104		—		103		—	$	305
	Subtotal	$	15,050	$	15,484	$	8,293	$	5,661	$	4,280	$	8,197	$	1,698	$	58,663
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	24	$	24	$	-	$	48
Other Residential	Performing	$	6,432	$	9,477	$	3,100	$	421	$	641	$	1,511	$	415	$	21,997
	Non-performing		—		—		46		—		390		38		—	$	474
	Subtotal	$	6,432	$	9,477	$	3,146	$	421	$	1,031	$	1,549	$	415	$	22,471
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	1
Consumer
Motor Vehicle	Performing	$	264,933	$	215,125	$	70,926	$	46,939	$	12,038	$	2,177	$	—	$	612,138
	Non-performing		232		973		520		532		134		30		—	$	2,421
	Subtotal	$	265,165	$	216,098	$	71,446	$	47,471	$	12,172	$	2,207	$	—	$	614,559
	Current period gross charge-offs	$	841	$	7,722	$	3,101	$	1,448	$	499	$	174	$	-	$	13,785
Other Consumer	Performing	$	12,561	$	6,895	$	3,778	$	2,189	$	659	$	692	$	5,203	$	31,977
	Non-performing		—		20		145		39		17		—		1	$	222
	Subtotal	$	12,561	$	6,915	$	3,923	$	2,228	$	676	$	692	$	5,204	$	32,199
	Current period gross charge-offs	$	61	$	213	$	61	$	37	$	3	$	5	$	149	$	529
Total	Performing	$	348,183	$	317,948	$	151,284	$	91,864	$	33,181	$	131,427	$	72,484	$	1,146,371
	Non-performing		232		1,189		756		757		598		1,735		1	$	5,268
Total other loans		$	348,415	$	319,137	$	152,040	$	92,621	$	33,779	$	133,162	$	72,485	$	1,151,639

19

4.    Securities

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

	June 30, 2024
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	98,999	$	7	$	(12,076)	$	86,930
Mortgage Backed Securities - residential		630,097		85		(86,427)		543,755
Mortgage Backed Securities - commercial		7,843		—		(399)		7,444
Collateralized mortgage obligations		199,245		9		(28,946)		170,308
State and municipal obligations		392,250		347		(32,760)		359,837
Municipal taxable		39,616		1		(5,499)		34,118
U.S. Treasury		470		—		(3)		467
Collateralized debt obligations		—		2,892		—		2,892
TOTAL	$	1,368,520	$	3,341	$	(166,110)	$	1,205,751

	December 31, 2023
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	102,978	$	4	$	(11,542)	$	91,440
Mortgage Backed Securities-residential		653,507		53		(83,675)		569,885
Mortgage Backed Securities-commercial		7,919		—		(436)		7,483
Collateralized mortgage obligations		209,398		6		(28,575)		180,829
State and municipal obligations		397,413		1,407		(28,009)		370,811
Municipal taxable		39,872		12		(5,599)		34,285
U.S. Treasury		1,411		—		(9)		1,402
Collateralized debt obligations		—		3,002		—		3,002
TOTAL	$	1,412,498	$	4,484	$	(157,845)	$	1,259,137

Contractual maturities of debt securities at June 30, 2024 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	8,545	$	8,472
Due after one but within five years		44,994		43,141
Due after five but within ten years		108,667		104,810
Due after ten years		369,129		327,821
		531,335		484,244
Mortgage-backed securities and collateralized mortgage obligations		837,185		721,507
TOTAL	$	1,368,520	$	1,205,751

There were no gross gains and losses from investment sales/calls realized by the Corporation for the three and six months ended June 30, 2024, and June 30, 2023.

20

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 June 30, 2024 and December 31, 2023.

	June 30, 2024
	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	$	—	$	—	$	86,212	$	(12,076)	$	86,212	$	(12,076)
Mortgage Backed Securities - Residential		8,455		(69)		526,511		(86,358)		534,966		(86,427)
Mortgage Backed Securities - Commercial		—		—		7,444		(399)		7,444		(399)
Collateralized mortgage obligations		—		—		167,423		(28,946)		167,423		(28,946)
State and municipal obligations		69,381		(531)		246,421		(32,229)		315,802		(32,760)
Municipal taxable		1,308		(7)		31,809		(5,492)		33,117		(5,499)
U.S. Treasury		468		(3)		—		—		468		(3)
Total temporarily impaired securities	$	79,612	$	(610)	$	1,065,820	$	(165,500)	$	1,145,432	$	(166,110)

	December 31, 2023
	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	$	3,757	$	(73)	$	87,291	$	(11,469)	$	91,048	$	(11,542)
Mortgage Backed Securities - Residential		3,810		(41)		556,414		(83,634)		560,224		(83,675)
Mortgage Backed Securities - Commercial		—		—		7,483		(436)		7,483		(436)
Collateralized mortgage obligations		12,981		(303)		164,871		(28,272)		177,852		(28,575)
State and municipal obligations		45,154		(319)		212,022		(27,690)		257,176		(28,009)
Municipal taxable		—		—		31,958		(5,599)		31,958		(5,599)
U.S. Treasury		1,402		(9)		—		—		1,402		(9)
Total temporarily impaired securities	$	67,104	$	(745)	$	1,060,039	$	(157,100)	$	1,127,143	$	(157,845)

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 $166.1 million as of June 30, 2024 and $157.8 million as of December 31, 2023. 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. The portfolio contains primarily government agency, agency backed mortgage backed securities (“MBS”), and collateralized mortgage obligations (“CMO”), which are issued by government sponsored enterprises and are backed by the full faith and credit of the United States government. Secondarily, the Corporation invests in municipal securities issued by state and local governments. Of these, almost half are either insured or contain state enhancements. On the remaining, credit is monitored by the investment committee. 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

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollar amounts in thousands)	2024		2023		2024		2023
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

22

5.    Qualified Affordable Housing Project Investments

The Corporation invests in qualified affordable housing projects. The balance of investment for qualified housing projects was $28.9 million at June 30, 2024 and $7.8 million at December 31, 2023. These balances are reflected in the other assets line on the consolidated balance sheets. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $20.6 million at June 30, 2024. The Corporation expects to fulfill these commitments by the end of December 31, 2037.

The Corporation recognized amortization expense of $211 thousand during the six months ended June 30, 2024, and $390 thousand during the six months ended June 30, 2023, which was included within other noninterest expense on the consolidated statements of income. The Corporation recognized amortization expense of $847 thousand during the six months ended June 30, 2024, which was included within income tax expense on the consolidated statements of income. Additionally, the Corporation recognized tax credits and other benefits from its investment in affordable housing tax credits of $1.6 million during the six months ended June 30, 2024, and $674 thousand during the six months ended June 30, 2023.

6.    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 and investments in state and municipal securities. 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).

23

	June 30, 2024
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	86,930	$	—	$	86,930
Mortgage Backed Securities-residential		—		543,755		—		543,755
Mortgage Backed Securities-commercial		—		7,444		—		7,444
Collateralized mortgage obligations		—		170,308		—		170,308
State and municipal		—		359,032		805		359,837
Municipal taxable		—		34,118		—		34,118
U.S. Treasury		—		467		—		467
Collateralized debt obligations		—		—		2,892		2,892
TOTAL	$	—	$	1,202,054	$	3,697	$	1,205,751
Derivative Assets				2,994
Derivative Liabilities				(2,994)

	December 31, 2023
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	91,440	$	—	$	91,440
Mortgage Backed Securities-residential		—		569,885		—		569,885
Mortgage Backed Securities-commercial		—		7,483		—		7,483
Collateralized mortgage obligations		—		180,829		—		180,829
State and municipal		—		369,631		1,180		370,811
Municipal taxable		—		34,285		—		34,285
U.S. Treasury		—		1,402		—		1,402
Collateralized debt obligations		—		—		3,002		3,002
TOTAL	$	—	$	1,254,955	$	4,182	$	1,259,137
Derivative Assets				2,878
Derivative Liabilities				(2,878)

There were no transfers between Level 1 and Level 2 during 2024 and 2023.

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 six months ended June 30, 2024 and the year ended December 31, 2023.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	June 30, 2024
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, April 1	$	805	$	2,888	$	3,693
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		4		4
Transfers		—		—		—
Settlements		—		—		—
Ending balance, June 30	$	805	$	2,892	$	3,697

24

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Six Months Ended
	June 30, 2024
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,180	$	3,002	$	4,182
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		(110)		(110)
Transfers		—		—		—
Settlements		(375)		—		(375)
Ending balance, June 30	$	805	$	2,892	$	3,697

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,545	$	2,986	$	4,531
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		16		16
Purchases		—		—		—
Settlements		(365)		—		(365)
Ending balance, December 31	$	1,180	$	3,002	$	4,182

Other real estate owned is valued at Level 3. Other real estate owned at June 30, 2024 with a value of $170 thousand was reduced by $32 thousand for fair value adjustment. At June 30, 2024 other real estate owned was comprised of $170 thousand from residential loans. Other real estate owned at December 31, 2023 with a value of $107 thousand was reduced by $57 thousand for fair value adjustment. At December 31, 2023 other real estate owned was comprised of $26 thousand from commercial loans and $81 thousand from residential loans.

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 5% to 100% with an average discount of 65%. 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.

25

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at June 30, 2024.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	805	Discounted cash flow	Discount rate	4.24%-4.44	%
Collateralized debt obligations	$	2,892	Discounted cash flow	Discount rate	7.27	%
Collateral dependent loans	$	5,103	Discounted cash flow	Discount rate for age of appraisal and market conditions	5.00%-100.00	%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2023.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,180	Discounted cash flow	Discount rate	4.04%-4.44	%
Collateralized debt obligations	$	3,002	Discounted cash flow	Discount rate	7.36	%
Collateral dependent loans		11,306	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-100.00	%

The carrying amounts and estimated fair value of financial instruments at June 30, 2024 and December 31, 2023, 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.

	June 30, 2024
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	75,073	$	24,820	$	50,253	$	—	$	75,073
Federal funds sold		—		—		—		—		—
Securities available-for-sale		1,205,751		—		1,202,054		3,697		1,205,751
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,165,675		—		—		3,030,377		3,030,377
Accrued interest receivable		23,733		—		6,558		17,175		23,733
Deposits		(4,132,327)		—		(4,130,751)		—		(4,130,751)
Short-term borrowings		(38,211)		—		(38,211)		—		(38,211)
Other borrowings		(108,575)		—		(108,507)		—		(108,507)
Accrued interest payable		(3,213)		—		(3,213)		—		(3,213)

	December 31, 2023
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	76,759	$	25,467	$	51,292	$	—	$	76,759
Federal funds sold		282		—		282		—		282
Securities available-for-sale		1,259,137		—		1,254,955		4,182		1,259,137
Restricted stock		15,364		n/a		n/a		n/a		n/a
Loans, net		3,128,054		—		—		3,025,621		3,025,621
Accrued interest receivable		24,877		—		6,755		18,122		24,877
Deposits		(4,090,068)		—		(4,094,552)		—		(4,094,552)
Short-term borrowings		(67,221)		—		(67,221)		—		(67,221)
Other borrowings		(108,577)		—		(108,496)		—		(108,496)
Accrued interest payable		(2,588)		—		(2,588)		—		(2,588)

26

7.    Borrowings

Short-term borrowings:

Period–end short-term borrowings were comprised of the following:

(Dollar amounts in thousands)	June 30, 2024		December 31, 2023
Federal Funds Purchased	$	3,125	$	27,300
Repurchase Agreements		35,086		39,921
	$	38,211	$	67,221

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:

	June 30, 2024
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	29,711	$	300	$	—	$	5,075	$	35,086

	December 31, 2023
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	32,319	$	300	$	3,637	$	3,665	$	39,921

Other borrowings:

Other borrowings at June 30, 2024 and December 31, 2023 are summarized as follows:

(Dollar amounts in thousands)	June 30, 2024		December 31, 2023
FHLB advances	$	83,575	$	108,577
Notes payable		25,000		—
TOTAL	$	108,575	$	108,577

The aggregate minimum annual retirements of other borrowings are as follows:

Twelve Months Ended June 30,

2025	$	78,605
2026		4,970
2027		25,000
2028		—
2029		—
Thereafter		—
	$	108,575

27

At June 30, 2024 and December 31, 2023, other borrowings are summarized as follows: The Corporation’s subsidiary bank is a member of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances. There are $83.6 million of advances from the FHLB at June 30, 2024, and $108.6 million of advances at December 31, 2023. FHLB advances are, generally due in full at maturity. They are secured by eligible securities and a blanket pledge on real estate loan collateral. In addition the Corporation secured a note payable to a commercial bank in the quarter for $25 million.

8.    Components of Net Periodic Benefit Cost

	Three Months Ended June 30,								Six Months Ended June 30,
					Post-Retirement								Post-Retirement
	Pension Benefits				Health Benefits				Pension Benefits				Health Benefits
(Dollar amounts in thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Service cost	$	141	$	157	$	4	$	5	$	282	$	314	$	8	$	10
Interest cost		947		956		35		39		1,894		1,912		69		77
Expected return on plan assets		(1,052)		(969)		—		—		(2,103)		(1,939)		—		—
Net amortization of prior service cost		—		—		—		—		—		—		—		—
Net amortization of net (gain) loss		108		188		(20)		(13)		217		376		(40)		(26)
Net Periodic Benefit Cost	$	144	$	332	$	19	$	31	$	290	$	663	$	37	$	61

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2023 that it expected to contribute $3.9 million and $604 thousand respectively to its Pension Plan and ESOP and $249 thousand to the Post Retirement Health Benefits Plan in 2024. Contributions of $526 thousand have been made to the Pension Plan thus far in 2024. Contributions of $134 thousand have been made through the first six months of 2024 for the Post Retirement Health Benefits plan. No contributions have been made in 2024 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 six months of 2024 and 2023 there has been $1.6 million and $1.3 million of expense accrued for potential contributions to these alternative retirement benefit options.

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9.    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 six months ended June 30, 2024 and 2023. Items outside the scope of ASC 606 are noted as such.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollar amounts in thousands)	2024		2023		2024		2023
Non-interest income
Service charges on deposits and debit card fee income	$	6,730	$	7,054	$	13,437	$	13,872
Asset management fees		1,318		1,185		2,652		2,502
Interchange income		135		—		314		47
Net gains on sales of loans (a)		299		311		475		490
Loan servicing fees (a)		414		264		683		549
Other service charges and fees (a)		286		196		509		400
Other (b)		723		1,443		1,266		1,968
Total non-interest income	$	9,905	$	10,453	$	19,336	$	19,828

(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 June 30, 2024 and June 30, 2023, totaling $79 thousand and $(37) thousand, respectively, and for the six months ended for the same periods, totaling $87 thousand and $(31) thousand, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.

(c)

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.

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10.   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 six months ended June 30, 2024 and 2023.

	Unrealized
	gains and
	(Losses) on available-		2024
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, April 1,	$	(129,096)	$	(9,014)	$	(138,110)
Change in other comprehensive income (loss) before reclassification		3,535		—		3,535
Amounts reclassified from accumulated other comprehensive income		—		74		74
Net current period other comprehensive income (loss)		3,535		74		3,609
Ending balance, June 30,	$	(125,561)	$	(8,940)	$	(134,501)

	Unrealized
	gains and
	(Losses) on available-		2024
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(118,000)	$	(9,087)	$	(127,087)
Change in other comprehensive income (loss) before reclassification		(7,561)		—		(7,561)
Amounts reclassified from accumulated other comprehensive income		—		147		147
Net current period other comprehensive income (loss)		(7,561)		147		(7,414)
Ending balance, June 30,	$	(125,561)	$	(8,940)	$	(134,501)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, April 1,	$	(114,658)	$	(10,931)	$	(125,589)
Change in other comprehensive income (loss) before reclassification		(15,808)		—		(15,808)
Amounts reclassified from accumulated other comprehensive income		—		147		147
Net current period other comprehensive income (loss)		(15,808)		147		(15,661)
Ending balance, June 30,	$	(130,466)	$	(10,784)	$	(141,250)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(128,896)	$	(11,078)	$	(139,974)
Change in other comprehensive income (loss) before reclassification		(1,570)		—		(1,570)
Amounts reclassified from accumulated other comprehensive income		—		294		294
Net current period other comprehensive income (loss)		(1,570)		294		(1,276)
Ending balance, June 30,	$	(130,466)	$	(10,784)	$	(141,250)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	4/1/2024		Change		6/30/2024
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,262)	$	3,532	$	(127,730)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,166		3		2,169
Total unrealized loss on securities available-for-sale	$	(129,096)	$	3,535	$	(125,561)
Unrealized gain (loss) on retirement plans		(9,014)		74		(8,940)
TOTAL	$	(138,110)	$	3,609	$	(134,501)

30

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2024		Change		6/30/2024
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(120,252)	$	(7,478)	$	(127,730)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,252		(83)		2,169
Total unrealized gain (loss) on securities available-for-sale	$	(118,000)	$	(7,561)	$	(125,561)
Unrealized gain (loss) on retirement plans		(9,087)		147		(8,940)
TOTAL	$	(127,087)	$	(7,414)	$	(134,501)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	4/1/2023		Change		6/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(116,844)	$	(15,827)	$	(132,671)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,186		19		2,205
Total unrealized gain (loss) on securities available-for-sale	$	(114,658)	$	(15,808)	$	(130,466)
Unrealized loss on retirement plans		(10,931)		147		(10,784)
TOTAL	$	(125,589)	$	(15,661)	$	(141,250)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2023		Change		6/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,135)	$	(1,536)	$	(132,671)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,239		(34)		2,205
Total unrealized income (loss) on securities available-for-sale	$	(128,896)	$	(1,570)	$	(130,466)
Unrealized gain (loss) on retirement plans		(11,078)		294		(10,784)
TOTAL	$	(139,974)	$	(1,276)	$	(141,250)

	Three Months Ended June 30, 2024
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(195)	(a)	Salary and benefits
retirement plan items		48		Income tax expense
	$	(147)		Net of tax
Total reclassifications for the period	$	(147)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

31

	Six Months Ended June 30, 2024
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(98)	(a)	Salary and benefits
retirement plan items		24		Income tax expense
	$	(74)		Net of tax
Total reclassifications for the period	$	(74)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Three Months Ended June 30, 2023
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(196)	(a)	Salary and benefits
retirement plan items		49		Income tax expense
	$	(147)		Net of tax
Total reclassifications for the period	$	(147)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Six Months Ended June 30, 2023
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(392)	(a)	Salary and benefits
retirement plan items		98		Income tax expense
	$	(294)		Net of tax
Total reclassifications for the period	$	(294)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

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11.   Leases

The Corporation leases certain branches under operating leases. At June 30, 2024, the Corporation had lease liabilities totaling $5,468,000 and right-of-use assets totaling $5,396,000 related to these leases. At December 31, 2023, the Corporation had lease liabilities totaling $5,456,000 and right-of-use assets totaling $5,392,000 related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At June 30, 2024, the weighted average remaining lease term for operating leases was 8.5 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.28%.

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:

	Six Months Ended
(Dollar amounts in thousands)	June 30, 2024
Operating lease cost	$	487
Short-term lease cost		55
Variable lease cost		18
Total lease cost	$	560
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities		487
Right-of-use assets obtained in exchange for new operating lease liabilities		429

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024 were as follows:

(Dollar amounts in thousands)	June 30, 2024
Twelve Months Ended June 30,
2025	$	986
2026		927
2027		863
2028		847
2029		548
Thereafter		2,007
Total Future Minimum Lease Payments		6,178
Amounts Representing Interest		(710)
Present Value of Net Future Minimum Lease Payments	$	5,468

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12.   Subsequent Events

On July 1, 2024, First Financial Corporation, an Indiana corporation (“FFC”) and First Financial Bank, National Association, a national banking association and wholly-owned subsidiary of FFC (“First Financial Bank”) completed their previously announced acquisition of SimplyBank., a Tennessee-chartered commercial bank (“SimplyBank”), pursuant to the Agreement and Plan of Reorganization by and among FFC, First Financial Bank, SimplyBank, and FFB Interim Bank, National Association, a wholly owned subsidiary of FFC (“Merger Sub”) dated as of November 13, 2023 (the “Merger Agreement”). On the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub merged with and into SimplyBank (the “Interim Merger”), with SimplyBank continuing as the surviving entity. Immediately following the Interim Merger, SimplyBank merged with and into First Financial Bank, with First Financial Bank as the surviving entity (the “Bank Merger”).

Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Interim Merger (the “Effective Time”), other than dissenting shares, each share of SimplyBank Common Stock issued and outstanding immediately prior to the Effective Time, was converted into the right to receive $718.38 per share in cash. The aggregate value of the transaction was approximately $73.4 million.

34

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 2023 in the 10-K filed for the fiscal year ended December 31, 2023.

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. 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, 2023, 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 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 2023 Form 10-K.

Allowance for credit losses. The allowance for credit losses (ACL) represents management’s estimate of expected losses inherent within the existing loan portfolio. The allowance for credit losses is increased by the provision for credit losses charged to expense and reduced by loans charged off, net of recoveries. The allowance for credit losses is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions, nonperforming loans, determination of acquired loans as purchase credit deteriorated, and reasonable and supportable forecasts. Loans are individually evaluated when they do not share risk characteristics with other loans in the respective pool. Loans evaluated individually are excluded from the collective evaluation. Management elected the collateral dependent practical expedient upon adoption of ASC 326. Expected credit losses on individually evaluated loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Management utilizes a cohort methodology to determine the allowance for credit losses. This method identifies and captures the balance of a pool of loans with similar risk characteristics, as of a particular point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over their remaining life. The cohorts track loan balances and historical loss experience since 2008, and management extends the look back period each quarter to capture all available data points in the historical loss rate calculation. The quantitative component of the ACL involves assumptions that require a significant level of estimation; these include historical losses as a predictor of future performance, appropriateness of selected delay periods, and the reasonableness of the portfolio segmentation.

A historical data set is expected to provide the best indication of future credit performance. Delay periods represent the amount of time it takes a cohort of loans to become seasoned, or incur sufficient attrition through pay downs, renewals, or charge-offs. Portfolio segmentation relates to the pooling of loans with similar risk characteristics, such as industry types, collateral, and consumer purpose.

35

On an annual basis, in the first quarter, management performs a recalibration of the delay periods and portfolio segmentation to determine whether they are reasonable and appropriate based on the information available at that time.

Management considers qualitative adjustments to expected credit loss estimates for information not already captured in the loss estimation process. Where past performance may not be representative of future losses, loss rates are adjusted for qualitative and economic forecast factors. Management uses the peak three consecutive quarter net charge off rate to capture maximum potential volatility over the reasonable and supportable forecast period. Historical losses utilized in setting the qualitative factor ranges are anchored to 2008 and may be supplemented by peer information when needed. The qualitative factor ranges are recalibrated annually to capture recent behavior that is indicative of the credit profile of the current portfolio.

Qualitative factors include items, such as changes in lending policies or procedures, asset specific risks, and economic uncertainty in forward-looking forecasts. Economic indicators utilized in forecasting include unemployment rate, gross domestic product, housing starts, and interest rates. Management uses a two-year reasonable and supportable period across all loan segments to forecast economic conditions. Management believes the two-year time horizon aligns with available industry guidance and various forecasting sources. Economic forecast adjustments are overlaid onto historical loss rates. As such, reversion from forecast rates to historical loss rates is immediate.

The ACL and allowance for unfunded commitments were $38.3 million and $1.7 million, respectively at June 30, 2024, compared to $39.8 million and $2.0 million, respectively at December 31, 2023. The qualitative amount of the reserve decreased $421 thousand to $10.5 million. The quantitative amount is $27.8 million at June 30, 2024, compared to $28.4 million at December 31, 2023. There was a decrease of $300 thousand in the allowance for unfunded commitments. See additional discussion of ACL in the Allowance for Credit Losses section below.

Based on management’s analysis of the current portfolio, management believes the allowance is adequate. Changes in the financial condition of individual borrowers, economic conditions, historical loss experience, or the condition of the various markets in which collateral may be sold may affect the required level of the allowance for credit losses and the associated provision for credit losses. As management monitors these changes, as well as those factors discussed above, adjustments may be recorded to the allowance for credit losses and the associated provision for credit losses in the future.

Summary of Operating Results

Net income for the three months ended June 30, 2024 was $11.4 million, compared to $16.0 million for the same period in 2023. Basic earnings per share decreased to $0.96 for the second quarter of 2024 compared to $1.33 for the same period in 2023. Return on average assets and return on average equity were 0.94% and 8.78% respectively, for the three months ended June 30, 2024 compared to 1.34% and 12.75% for the three months ended June 30, 2023. Net income for the six months ended June 30, 2024 was $22.3 million, compared to $32.0 million for the same period in 2023. Basic earnings per share decreased to $1.89 for the first six months of 2024 compared to $2.66 for the same period in 2023. Return on average assets and return on average equity were 0.93% and 8.57% respectively, for the six months ended June 30, 2024 compared to 1.33% and 12.92% for the six months ended June 30, 2023.

In light of events in the banking sector, including bank failures, continuing interest rate activity and recessionary concerns, the Corporation has proactively positioned the balance sheet to mitigate the risks affecting the Corporation and the overall banking industry in order to serve its clients and communities.

● Liquidity remains strong, with cash and available for sale securities representing approximately 26.7% of assets at June 30, 2024. The Corporation maintains the ability to access considerable sources of contingent liquidity at the Federal Home Loan Bank and several correspondent banks. Management considers the Corporation’s current liquidity position to be adequate to meet both short-term and long-term liquidity needs. Refer to the section Liquidity Risk for additional information.

● Capital remains strong, with ratios of the Corporation, and its subsidiary bank, well above the standards to be considered well-capitalized under regulatory requirements. Refer to the section Capital Adequacy, included elsewhere in this report for additional details.

● Asset quality remains solid, with a non-performing asset ratio of 0.39% of total assets as of June 30, 2024 and net charge-offs of 0.39% to average loans and leases, reflecting the Company's disciplined underwriting and conservative lending philosophy

36

which has supported the Corporation’s strong credit performance during prior financial crises. Refer to the section Non-Performing Loan for additional information.

The Corporation will continue its safe and sound banking practices, but the continuing impact of the 2023 crisis and further extent on the Corporation’s operations and financial results for the remainder of 2024 is uncertain and cannot be predicted.

On November 13, 2023, First Financial Corporation, an Indiana corporation ("FFC"), First Financial Bank, National Association, a national banking association and wholly-owned subsidiary of FFC (“First Financial Bank”), and SimplyBank., a Tennessee-chartered commercial bank (“SimplyBank”), entered into an Agreement and Plan of Reorganization (the "Merger Agreement"). Pursuant to the terms of the Merger Agreement, FFC will form an interim national banking association as a wholly-owned subsidiary, which will merge with and into SimplyBank, with SimplyBank as the surviving entity (the "Interim Merger"). Immediately following the Interim Merger, SimplyBank will merge with and into First Financial Bank, with First Financial Bank as the surviving entity (the "Bank Merger," and together with the Interim Merger, the "Transactions"). See Subsequent Events footnote for discussion of the closing of the merger.

The primary components of income and expense affecting net income are discussed in the following analysis.

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 $2.9 million in the three months ended June 30, 2024 to $39.3 million from $42.2 million in the same period in 2023. The net interest margin for the three months ended June 30, 2024 is 3.57% compared to 3.81% for the same period in 2023, a 6.18% decrease. Net interest income decreased $8.3 million in the six months ended June 30, 2024 to $78.2 million from $86.5 million in the same period in 2023. The net interest margin for the six months ended June 30, 2024 is 3.55% compared to 3.88% for the same period in 2023.

The increase in yields on net loans and leases of 46 basis points is the primary contributor to the improved yield on average earning assets for the six months ended June 30, 2024, compared to the six months ended June 30, 2023, which was due to market conditions as a result of Federal Reserve interest rate increases. Comparing the six months ended June 30, 2024 to the six months ended June 30, 2023, the effective rate paid on average interest-bearing deposits increased 82 basis points, due to rate competition in the market. For the same period discussed above, interest paid on other borrowings increased 109 basis points due to higher borrowing rates.

Non-Interest Income

Non-interest income for the three months ended June 30, 2024 was $9.9 million compared to $10.5 million for the same period in 2023. Non-interest income for the six months ended June 30, 2024 was $19.3 million compared to $19.8 million for the same period in 2023.

Non-Interest Expenses

The Corporation’s non-interest expense for the quarter ended June 30, 2024 was $32.7 million compared to $31.3 million for the same period in 2023. The Corporation’s non-interest expense for the six months ended June 30, 2024 increased $2.4 million to $66.1 milllion compared to the same period in 2023. This includes $976 thousand of acquisition related expenses.

37

Allowance for Credit Losses

The Corporation’s provision for credit losses for the three months ended June 30, 2024, was $3.0 million, compared to provision of $1.8 million for the same period of 2023. Net charge-offs for the second quarter of 2024 were $4.7 million compared to net charge-offs of $1.5 million for the same period of 2023. The provision for credit losses increased $1.2 million to $4.8 million for the six months ended June 30, 2024, compared to a provision of $3.6 million for the same period in 2023. Net charge-offs for the first six months of 2024 increased $2.7 million to $6.2 million compared to the same period in 2023. The increase in provision as well as charge-offs were related to one previously identified credit, reflecting further deterioration in collateral values in the quarter. 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. In the first six months of 2024, no significant changes were made.

Income Tax Expense

The Corporation’s effective income tax rate for the first six months of 2024 was 16.54% compared to 18.21% for the same period in 2023. Pretax income for the first six months in 2023 was significantly higher than pretax income for first six months in 2024. Since our permanent differences remained similar, income was the driving factor for the decrease in effective tax rate.

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,  and (2) loans past due ninety days or more as to principal or interest. Non-performing loans decreased to $15.9 million at June 30, 2024 compared to $24.6 million at December 31, 2023. Nonperforming loans increased 19.7% compared to $13.3 million as of June 30, 2023.

A summary of non-performing loans at June 30, 2024 and December 31, 2023 follows:

	(000's)
	June 30, 2024			December 31, 2023
Non-accrual loans	$	14,563		$	23,596
Accruing loans past due over 90 days		1,353			960
	$	15,916		$	24,556
Ratio of the allowance for credit losses as a percentage of non-performing loans		240.9	%		161.9	%

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

	June 30, 2024		December 31, 2023
Non-accrual loans
Commercial loans	$	10,127	$	18,380
Residential loans		1,981		2,065
Consumer loans		2,455		3,151
	$	14,563	$	23,596
Past due 90 days or more
Commercial loans	$	408	$	4
Residential loans		945		911
Consumer loans		—		45
	$	1,353	$	960

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 of the Asset Liability Committee is to maximize net interest income within the interest rate risk limits approved by the Board of Directors.

38

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 June 30, 2024. The change in interest rates assumes a parallel shift in interest rates of 100, 200, and 300 basis points. Given a 100 basis point increase in rates, net interest income would decrease 2.61% over the next 12 months and increase 0.12% over the following 12 months. Given a 100 basis point decrease in rates, net interest income would increase 5.97% over the next 12 months and increase 2.79% 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 300	7.91	%	(2.24)	%	(12.75)	%
Down 200	6.76		0.25		(6.77)
Down 100	5.97		2.79		(0.75)
Up 100	(2.61)		0.12		3.40
Up 200	(8.78)		(3.12)		3.60
Up 300	(12.94)		(4.46)		5.62

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 $11.6 million of investments that mature throughout the next 12 months. The Corporation also anticipates $116.0 million of principal payments from mortgage-backed and other securities. Given the current rate environment, the Corporation anticipates $17.1 million in securities to be called within the next 12 months. The Corporation also has $229.1 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, $371.8 million available with the Federal Reserve Bank, and $125 million of available fed funds lines with 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 six months of 2024 to year-ended December 31, 2023, loans net of deferred loan costs, have increased $36 million to $3.2 billion. Deposits increased 1.03% to $4.1 billion at June 30, 2024 compared to December 31, 2023. Other borrowings remain unchanged at $108.6 million at June 30, 2024 compared to December 31, 2023. Shareholders’ equity increased 0.51% or $2.7

39

million. This financial performance increased book value per share 0.36% to $44.92 at June 30, 2024 from $44.76 at December 31, 2023. Book value per share is calculated by dividing the total shareholders’ equity by the number of shares outstanding. Accumulated other comprehensive loss decreased $7.4 million primarily due to the market value of the securities portfolio, which reflected the decrease in securities pricing.

40

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.

	June 30, 2024		December 31, 2023		To Be Well Capitalized
Common equity tier 1 capital
Corporation	14.82	%	14.76	%	N/A
First Financial Bank	13.44	%	13.84	%	—	%
Total risk-based capital
Corporation	15.81	%	15.80	%	N/A
First Financial Bank	14.44	%	14.89	%	—	%
Tier I risk-based capital
Corporation	14.82	%	14.76	%	N/A
First Financial Bank	13.44	%	13.84	%	—	%
Tier I leverage capital
Corporation	12.14	%	12.14	%	N/A
First Financial Bank	10.48	%	10.73	%	—	%

41

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 June 30, 2024, 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 June 30, 2024 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 June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the Corporation's internal control over financial reporting.

42

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 2023 Form 10-K filed for December 31, 2023.

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 April 21, 2022 First Financial Corporation issued a press release announcing that its Board of Directors has authorized a stock repurchase program pursuant to which up to 10% of the Corporations outstanding shares of common stock, or approximately 1,243,531 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	(c)
	(a)	(b)	Purchased As Part Of	Maximum
	Total Number Of	Average Price	Publicly Announced Plans	Number of Shares That May Yet
	Shares Purchased	Paid Per Share	Or Programs *	Be Purchased *
April 1-30, 2024	—	—	—	—
May 1-31, 2024	—	—	—	—
June 1-30, 2024	—	—	—	—
Total	—	—	—	518,860

ITEM 3.Defaults upon Senior Securities.

Not applicable.

ITEM 4.Mine Safety Disclosures

Not applicable.

ITEM 5.Other Information.

During the three months ended June 30, 2024, there were no Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements adopted, modified or terminated by any director or officer of the Corporation.

43

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	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 January 1, 2024, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on October 20, 2023.
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 January 1, 2024, incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed October 20, 2023.
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.
10.16*	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, 2024 by Principal Executive Officer, dated August 7, 2024.
31.2	Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 by Principal Financial Officer, dated August 7, 2024.
32.1	Certification, dated August 7, 2024, 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, 2024.
101.1	Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended June 30, 2024, 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.

44

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: August 7, 2024	By /s/ Norman D. Lowery
	Norman D. Lowery, President, CEO & Director
	(Principal Executive Officer)
Date: August 7, 2024	By /s/ Rodger A. McHargue
	Rodger A. McHargue, Treasurer and CFO
	(Principal Financial Officer)

45

EX-31.1

Exhibit 31.1

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Norman D. Lowery, certify that:

1 I have reviewed this quarterly report on Form 10-Q of First Financial Corporation;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and l5d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 7, 2024

By /s/ Norman D. Lowery

Norman D. Lowery,

President and CEO

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Rodger A. McHargue, certify that:

1 I have reviewed this quarterly report on Form 10-Q of First Financial Corporation;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and l5d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 7, 2024

By /s/ Rodger A. McHargue

Rodger A. McHargue

Treasurer and CFO

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Sarbanes-Oxley Act of 2002, Section 906

Certification of Principal Executive and Principal Financial Officers

In connection with the Quarterly Report on Form 10-Q of First Financial Corporation (the “Company”) for the Quarterly period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Norman D. Lowery , as the Chief Executive Officer of the Company, and Rodger A. McHargue, as the Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

1.This Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 7, 2024	By /s/ Norman D. Lowery
	Norman D. Lowery, President & CEO
	(Principal Executive Officer)
August 7, 2024	By /s/ Rodger A. McHargue
	Rodger A. McHargue, Treasurer & CFO
	(Principal Financial Officer)

XML

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	0-16759
Entity Registrant Name	FIRST FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-1546989
Entity Address, Address Line One	One First Financial Plaza
Entity Address, City or Town	Terre Haute
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47807
City Area Code	812
Local Phone Number	238-6000
Title of 12(b) Security	Common Stock, par value $0.125 per share
Trading Symbol	THFF
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,814,093
Entity Central Index Key	0000714562
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 75,073	$ 76,759
Federal funds sold	24,000	282
Securities available-for-sale	1,205,751	1,259,137
Loans	3,196,820	3,160,072
(Less) plus: Net deferred loan (fees)/costs	7,189	7,749
Allowance for credit losses	(38,334)	(39,767)
Loans, net	3,165,675	3,128,054
Restricted stock	15,378	15,364
Accrued interest receivable	23,733	24,877
Premises and equipment, net	65,750	67,286
Bank-owned life insurance	114,767	114,122
Goodwill	86,985	86,985
Other intangible assets	5,116	5,586
Other real estate owned	170	107
Other assets	108,670	72,587
TOTAL ASSETS	4,891,068	4,851,146
Deposits:
Non-interest-bearing	748,495	750,335
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits	112,679	92,921
Other interest-bearing deposits	3,271,153	3,246,812
Total Deposits	4,132,327	4,090,068
Short-term borrowings	38,211	67,221
Other borrowings	108,575	108,577
Other liabilities	81,285	57,304
TOTAL LIABILITIES	4,360,398	4,323,170
Shareholders' equity
Common stock, $0.125 stated value per share; Authorized shares - 40,000,000; Issued shares-16,165,023 in 2024 and 16,137,220 in 2023; Outstanding shares - 11,814,093 in 2024 and 11,795,024 in 2023	2,016	2,014
Additional paid-in capital	144,632	144,152
Retained earnings	673,728	663,726
Accumulated other comprehensive loss	(134,501)	(127,087)
Less: Treasury shares at cost - 4,350,930 in 2024 and 4,342,196 in 2023	(155,205)	(154,829)
TOTAL SHAREHOLDERS' EQUITY	530,670	527,976
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,891,068	4,851,146
Commercial
ASSETS
Loans	1,782,646	1,817,526
Residential
ASSETS
Loans	748,044	695,788
Consumer
ASSETS
Loans	$ 666,130	$ 646,758

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
CONSOLIDATED BALANCE SHEETS
Common stock, stated value per share	$ 0.125	$ 0.125
Common stock, Authorized shares	40,000,000	40,000,000
Common stock, Issued shares	16,165,023	16,137,220
Common stock, Outstanding shares	11,814,093	11,795,024
Treasury, shares	4,350,930	4,342,196

XML

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
INTEREST INCOME:
Loans, including related fees	$ 51,459	$ 46,479	$ 101,511	$ 91,074
Securities:
Taxable	5,833	6,231	11,764	12,467
Tax-exempt	2,601	2,678	5,204	5,276
Other	878	841	1,695	2,112
TOTAL INTEREST INCOME	60,771	56,229	120,174	110,929
INTEREST EXPENSE:
Deposits	19,694	11,957	37,425	21,484
Short-term borrowings	959	1,294	1,935	2,102
Other borrowings	824	791	2,600	821
TOTAL INTEREST EXPENSE	21,477	14,042	41,960	24,407
NET INTEREST INCOME	39,294	42,187	78,214	86,522
Provision for credit losses	2,966	1,800	4,766	3,600
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	36,328	40,387	73,448	82,922
NON-INTEREST INCOME:
Trust and financial services	1,318	1,185	2,652	2,502
Service charges and fees on deposit accounts	6,730	7,054	13,437	13,872
Other service charges and fees	286	196	509	400
Interchange income	135		314	47
Loan servicing fees	414	264	683	549
Gain on sales of mortgage loans	299	311	475	490
Other	723	1,443	1,266	1,968
TOTAL NON-INTEREST INCOME	9,905	10,453	19,336	19,828
NON-INTEREST EXPENSE:
Salaries and employee benefits	17,380	16,946	34,710	34,104
Occupancy expense	2,201	2,132	4,560	4,731
Equipment expense	4,312	3,525	8,456	6,824
FDIC Expense	501	577	1,163	1,364
Other	8,257	8,166	17,184	16,644
TOTAL NON-INTEREST EXPENSE	32,651	31,346	66,073	63,667
INCOME BEFORE INCOME TAXES	13,582	19,494	26,711	39,083
Provision for income taxes	2,213	3,507	4,418	7,116
NET INCOME	11,369	15,987	22,293	31,967
OTHER COMPREHENSIVE INCOME
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes	3,535	(15,808)	(7,561)	(1,570)
Change in funded status of post retirement benefits, net of taxes	74	147	147	294
COMPREHENSIVE INCOME	$ 14,978	$ 326	$ 14,879	$ 30,691
PER SHARE DATA
Basic Earnings per Share (in dollars per share)	$ 0.96	$ 1.33	$ 1.89	$ 2.66
Diluted Earnings per Share (in dollars per share)	$ 0.96	$ 1.33	$ 1.89	$ 2.66
Weighted average number of shares outstanding, basic (in shares)	11,814	12,022	11,809	12,040
Weighted average number of shares outstanding, diluted (in shares)	11,814	12,022	11,809	12,040

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Capital	Retained Earnings Cumulative change in accounting principle ASU 2023-02	Retained Earnings	Accumulated Other Comprehensive Income/(Loss)	Treasury Stock	Cumulative change in accounting principle ASU 2023-02	Total
Balance at Dec. 31, 2022	$ 2,012	$ 143,185		$ 614,829	$ (139,974)	$ (144,759)		$ 475,293
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income				31,967				31,967
Other comprehensive income (loss)					(1,276)			(1,276)
Omnibus Equity Incentive Plan	1	447						448
Treasury shares purchased						(3,073)		(3,073)
Cash Dividends				(6,471)				(6,471)
Balance at Jun. 30, 2023	2,013	143,632		640,325	(141,250)	(147,832)		496,888
Balance at Mar. 31, 2023	2,012	143,408		630,809	(125,589)	(145,141)		505,499
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income				15,987				15,987
Other comprehensive income (loss)					(15,661)			(15,661)
Omnibus Equity Incentive Plan	1	224						225
Treasury shares purchased						(2,691)		(2,691)
Cash Dividends				(6,471)				(6,471)
Balance at Jun. 30, 2023	2,013	143,632		640,325	(141,250)	(147,832)		496,888
Balance at Dec. 31, 2023	2,014	144,152		663,726	(127,087)	(154,829)		527,976
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income				22,293				22,293
Other comprehensive income (loss)					(7,414)			(7,414)
Omnibus Equity Incentive Plan	2	480						482
Treasury shares purchased						(376)		(376)
Cash Dividends				(10,632)				(10,632)
Balance at Jun. 30, 2024	2,016	144,632		673,728	(134,501)	(155,205)		530,670
Balance at Mar. 31, 2024	2,015	144,391	$ (1,659)	667,675	(138,110)	(155,205)	$ (1,659)	520,766
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Net Income				11,369				11,369
Other comprehensive income (loss)					3,609			3,609
Omnibus Equity Incentive Plan	1	241						242
Cash Dividends				(5,316)				(5,316)
Balance at Jun. 30, 2024	$ 2,016	$ 144,632		$ 673,728	$ (134,501)	$ (155,205)		$ 530,670

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Treasury stock purchases (in shares)		82,903	8,734	91,207
Cash Dividends (in dollars per share)	$ 0.45	$ 0.54	$ 0.90	$ 0.54

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 22,293	$ 31,967
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments	2,411	2,550
Provision for credit losses	4,766	3,600
Depreciation and amortization	3,308	3,250
Restricted stock compensation	482	448
Gain on sale of mortgage loans	(475)	(490)
(Gain) Loss on sale of other real estate	(62)	14
Other, net	(11,510)	(3,613)
NET CASH FROM OPERATING ACTIVITIES	21,213	37,726
CASH FLOWS FROM INVESTING ACTIVITIES:
Calls, maturities and principal reductions on securities available-for-sale	50,182	56,322
Purchases of securities available-for-sale	(8,615)	(29,653)
Loans made to customers, net of repayment	(42,002)	(69,656)
Net change in federal funds sold	(23,718)	9,011
Purchase of restricted stock	(14)	(13)
Proceeds from sales of other real estate owned	268	217
Additions to premises and equipment	(1,302)	(3,595)
NET CASH FROM INVESTING ACTIVITIES	(25,201)	(37,367)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	42,308	(305,309)
Net change in short-term borrowings	(29,010)	57,984
Dividends paid	(10,620)	(15,383)
Purchase of treasury stock	(376)	(3,073)
Proceeds from other borrowings	1,150,000	680,000
Maturities of other borrowings	(1,150,000)	(555,000)
NET CASH FROM FINANCING ACTIVITIES	2,302	(140,781)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(1,686)	(140,422)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD	76,759	222,517
CASH AND DUE FROM BANKS, END OF PERIOD	$ 75,073	$ 82,095

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Significant Accounting Policies

Significant Accounting Policies

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.

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 six months ended 2024 and 2023, 27,803 and 22,228 shares were awarded, respectively. These shares had a grant date value of $1.0 million and $1.0 million for 2024 and 2023, 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.

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New accounting standards

6 Months Ended

Jun. 30, 2024

New accounting standards

New accounting standards

2.    New accounting standards

Accounting Pronouncements Adopted:

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 is effective for the Corporation for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption is permitted. The Corporation adopted ASU 2022-03 January 1, 2024, and it had no impact on its consolidated financial statements and related disclosures.

In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASU) No. 2023-02 “Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This guidance is effective for public business entities for fiscal years including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted in any interim period. The Corporation adopted ASU 2023-02 January 1, 2024 on a modified retrospective basis. As a result of the adoption, other assets was increased $19 million, other liabilities was increased $21 million, and retained earnings was decreased $1.7 million.

Recent Accounting Pronouncements:

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” These amendments require, among other things, that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 208. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all periods presented in the financial statements. The Corporation is assessing ASU 2023-07 and its effect on its consolidated financial statements and related disclosures.

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” Among other things, these amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate.) The amendments also require that all entities disclose on an annual basis the following information about income taxes paid: (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received.) This guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis although retrospective application is permitted. The Corporation is assessing ASU 2023-09 and its effect on its consolidated financial statements and related disclosures.

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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

Allowance for Credit Losses

Allowance for Credit Losses

3.    Allowance for Credit Losses

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

Allowance for Credit Losses:			June 30, 2024
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	13,579	$	14,233	$	11,919	$	314	$	40,045
Provision for credit losses		1,811		93		1,367		(305)		2,966
Loans charged-off		(3,548)		(42)		(2,501)		—		(6,091)
Recoveries		173		40		1,201		—		1,414
Ending Balance	$	12,015	$	14,324	$	11,986	$	9	$	38,334

Allowance for Credit Losses:			June 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,790	$	15,059	$	11,513	$	258	$	39,620
Provision for credit losses		(377)		166		1,733		278		1,800
Loans charged-off		(209)		(63)		(3,271)		—		(3,543)
Recoveries		246		106		1,678		—		2,030
Ending Balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907

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

Allowance for Credit Losses:			June 30, 2024
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	13,264	$	14,327	$	11,797	$	379	$	39,767
Provision for credit losses		2,082		(80)		3,134		(370)		4,766
Loans charged -off		(3,779)		(56)		(5,448)		—		(9,283)
Recoveries		448		133		2,503		—		3,084
Ending Balance	$	12,015	$	14,324	$	11,986	$	9	$	38,334

Allowance for Credit Losses:			June 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,949	$	14,568	$	12,104	$	158	$	39,779
Provision for credit losses		(431)		666		2,987		378		3,600
Loans charged -off		(515)		(142)		(7,262)		—		(7,919)
Recoveries		447		176		3,824		—		4,447
Ending Balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907

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

	June 30, 2024
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	303	$	6,072	$	34
Farmland		—		1,218		1,201
Non Farm, Non Residential		112		907		476
Agriculture		—		934		893
All Other Commercial		—		996		980
Residential
First Liens		567		963		32
Home Equity		136		111		—
Junior Liens		262		74		—
Multifamily		—		426		373
All Other Residential		—		407		348
Consumer
Motor Vehicle		—		2,218		—
All Other Consumer		—		237		—
TOTAL	$	1,380	$	14,563	$	4,337

	December 31, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	5	$	13,971	$	860
Farmland		—		1,221		1,201
Non Farm, Non Residential		—		995		1,011
Agriculture		—		1,147		1,103
All Other Commercial		—		1,046		1,027
Residential
First Liens		620		960		—
Home Equity		32		68		—
Junior Liens		239		67		—
Multifamily		47		543		373
All Other Residential		—		427		—
Consumer
Motor Vehicle		45		2,933		—
All Other Consumer		—		218		—
TOTAL	$	988	$	23,596	$	5,575

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

	June 30, 2024
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	598	$	5,117
Farmland		1,620		—
Non Farm, Non Residential		3,759		—
Agriculture		—		893
All Other Commercial		980		—
Residential
First Liens		32		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		348		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	7,710	$	6,010

	December 31, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	1,454	$	12,056
Farmland		1,633		—
Non Farm, Non Residential		3,919		—
Agriculture		49		1,054
All Other Commercial		1,027		—
Residential
First Liens		32		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		349		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	8,836	$	13,110

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

	June 30, 2024
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	616	$	1,273	$	1,844	$	3,733	$	532,154	$	535,887
Farmland		362		—		1,202		1,564		128,966		130,530
Non Farm, Non Residential		—		304		114		418		538,947		539,365
Agriculture		262		—		930		1,192		128,050		129,242
All Other Commercial		14		—		—		14		459,116		459,130
Residential
First Liens		678		921		876		2,475		362,596		365,071
Home Equity		314		389		220		923		66,824		67,747
Junior Liens		384		60		283		727		59,041		59,768
Multifamily		—		166		373		539		236,145		236,684
All Other Residential		—		211		377		588		20,859		21,447
Consumer
Motor Vehicle		9,561		1,312		590		11,463		626,746		638,209
All Other Consumer		442		103		67		612		30,445		31,057
TOTAL	$	12,633	$	4,739	$	6,876	$	24,248	$	3,189,889	$	3,214,137

	December 31, 2023
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	668	$	488	$	1,136	$	2,292	$	649,801	$	652,093
Farmland		58		—		1,201		1,259		132,147		133,406
Non Farm, Non Residential		—		—		—		—		439,009		439,009
Agriculture		—		—		1,141		1,141		139,900		141,041
All Other Commercial		—		—		—		—		464,776		464,776
Residential
First Liens		2,841		816		924		4,581		354,711		359,292
Home Equity		360		188		71		619		65,191		65,810
Junior Liens		462		124		262		848		57,985		58,833
Multifamily		117		140		373		630		191,104		191,734
All Other Residential		554		—		47		601		21,961		22,562
Consumer
Motor Vehicle		12,491		1,754		761		15,006		602,442		617,448
All Other Consumer		397		102		13		512		31,857		32,369
TOTAL	$	17,948	$	3,612	$	5,929	$	27,489	$	3,150,884	$	3,178,373

Loan Modifications Made to Borrowers Experiencing Financial Difficulty:

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.

The following table presents the amortized cost of loans and leases at June 30, 2024 that were both experiencing financial difficulty and modified during the twelve months ended June 30, 2024, by class and by type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each class of financial receivable is also presented below.

										Combination		Combination
										Term		Term		Total
										Extension and		Extension		Class of
	Principal		Payment		Term		Interest Rate			Principal		Interest Rate		Financing
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivable
Residential
First Liens	$	—	$	—	$	—	$	—	$	—	$	25		0.01	%
Junior Liens		—		—		28		—		—		—		0.05	%
Consumer
Motor Vehicle		27		—		293		27		110		107		0.09	%
TOTAL	$	27	$	—	$	321	$	27	$	110	$	132		0.02	%

The Corporation has no commitments to lend additional amounts to the borrowers included in the table above.

The Corporation closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months:

	June 30, 2024
	30 - 59		60 - 89		Greater Than
	Days		Days		89 Days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due
Consumer
Motor Vehicle	$	2	$	19	$	7	$	28
TOTAL	$	2	$	19	$	7	$	28

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the twelve months ended June 30, 2024.

			Weighted-			Weighted-
			Average			Average
	Principal		Interest Rate			Term
(Dollar amounts in thousands)	Forgiveness		Reduction			Extension
Residential
First Liens	$	—		2.75	%		24
Junior Liens		—		—			36
Consumer
Motor Vehicle		56		2.89	%		21
TOTAL	$	56		2.87	%		22

The following table presents the amortized cost basis of loans that had a payment default during the twelve months ended June 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

	Principal		Payment		Term		Interest Rate
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction
Consumer
Motor Vehicle	$	—	$		$	28	$	—
TOTAL	$	—	$	—	$	28	$	—

Upon the Corporation’s determination that a modified loan has subsequently been deemed uncollectible, the loan is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

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.

The following tables present the commercial loan portfolio by risk category. These balances do not include accrued interest:

		June 30, 2024
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2024		2023		2022		2021		2020		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	52,615	$	39,032	$	114,470	$	73,432	$	36,682	$	98,079	$	72,107	$	486,417
	Special Mention		—		8,175		715		9,749		3,318		1,375		2,593	$	25,925
	Substandard		3,615		707		1,700		4,140		132		7,048		—	$	17,342
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		863		1,131		993		531		278		125		—	$	3,921
	Subtotal	$	57,093	$	49,045	$	117,878	$	87,852	$	40,410	$	106,627	$	74,700	$	533,605
	Current period gross charge-offs	$	-	$	-	$	105	$	3,264	$	10	$	48	$	-	$	3,427
Farmland	Pass	$	7,978	$	20,439	$	15,613	$	19,574	$	7,747	$	54,037	$	224	$	125,612
	Special Mention		—		—		—		—		—		1,047		—	$	1,047
	Substandard		—		—		—		—		40		1,710		—	$	1,750
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		14		—	$	14
	Subtotal	$	7,978	$	20,439	$	15,613	$	19,574	$	7,787	$	56,808	$	224	$	128,423
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	50,043	$	79,663	$	135,958	$	98,953	$	22,032	$	135,940	$	4,755	$	527,344
	Special Mention		—		—		700		975		—		827		—	$	2,502
	Substandard		662		55		184		—		—		6,248		—	$	7,149
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		668		64		—	$	732
	Subtotal	$	50,705	$	79,718	$	136,842	$	99,928	$	22,700	$	143,079	$	4,755	$	537,727
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	4,811	$	8,730	$	10,061	$	5,669	$	5,391	$	25,472	$	62,249	$	122,383
	Special Mention		—		—		84		—		5		599		2,640	$	3,328
	Substandard		—		—		53		—		—		903		—	$	956
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		11		—		34		26		29		4		—	$	104
	Subtotal	$	4,822	$	8,730	$	10,232	$	5,695	$	5,425	$	26,978	$	64,889	$	126,771
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	15,398	$	32,721	$	103,023	$	92,936	$	92,515	$	108,130	$	9,160	$	453,883
	Special Mention		—		—		—		—		—		795		—	$	795
	Substandard		—		—		980		14		—		—		—	$	994
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		10		—		—		438		—	$	448
	Subtotal	$	15,398	$	32,721	$	104,013	$	92,950	$	92,515	$	109,363	$	9,160	$	456,120
	Current period gross charge-offs	$	252	$	100	$	-	$	-	$	-	$	-	$	-	$	352
Residential
Multifamily >5 Residential	Pass	$	22,380	$	53,605	$	70,093	$	31,496	$	22,217	$	26,399	$	458	$	226,648
	Special Mention		—		—		232		—		350		6,397		—	$	6,979
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		1,090		—		680		—	$	1,770
	Subtotal	$	22,380	$	53,605	$	70,325	$	32,586	$	22,567	$	33,849	$	458	$	235,770
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	153,225	$	234,190	$	449,218	$	322,060	$	186,584	$	448,057	$	148,953	$	1,942,287
	Special Mention		—		8,175		1,731		10,724		3,673		11,040		5,233	$	40,576
	Substandard		4,277		762		2,917		4,154		172		16,282		—	$	28,564
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		874		1,131		1,037		1,647		975		1,325		—	$	6,989
		$	158,376	$	244,258	$	454,903	$	338,585	$	191,404	$	476,704	$	154,186	$	2,018,416

		December 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	80,873	$	131,522	$	112,811	$	47,445	$	44,257	$	100,872	$	81,551	$	599,331
	Special Mention		6		221		10,025		3,442		323		866		2,715	$	17,598
	Substandard		3,620		4,734		1,842		981		1,789		5,354		7,932	$	26,252
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		3,476		1,352		847		431		144		93		—	$	6,343
	Subtotal	$	87,975	$	137,829	$	125,525	$	52,299	$	46,513	$	107,185	$	92,198	$	649,524
	Current period gross charge-offs	$	8	$	72	$	40	$	78	$	24	$	49	$	-	$	271
Farmland	Pass	$	21,232	$	16,025	$	20,794	$	8,310	$	8,790	$	52,357	$	287	$	127,795
	Special Mention		—		—		4		—		363		710		—	$	1,077
	Substandard		—		—		—		41		309		1,370		—	$	1,720
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		14		—	$	14
	Subtotal	$	21,232	$	16,025	$	20,798	$	8,351	$	9,462	$	54,451	$	287	$	130,606
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	73,740	$	123,319	$	69,477	$	23,965	$	22,550	$	106,752	$	7,606	$	427,409
	Special Mention		—		732		995		—		845		—		—	$	2,572
	Substandard		102		—		—		—		479		6,356		—	$	6,937
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		678		—		65		—	$	743
	Subtotal	$	73,842	$	124,051	$	70,472	$	24,643	$	23,874	$	113,173	$	7,606	$	437,661
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	10,764	$	11,299	$	6,614	$	6,118	$	7,443	$	25,678	$	64,476	$	132,392
	Special Mention		—		86		—		8		—		605		3,618	$	4,317
	Substandard		—		55		—		—		50		1,067		—	$	1,172
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		51		31		35		24		—		—	$	141
	Subtotal	$	10,764	$	11,491	$	6,645	$	6,161	$	7,517	$	27,350	$	68,094	$	138,022
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	27,401	$	105,046	$	104,307	$	94,029	$	4,774	$	112,159	$	9,177	$	456,893
	Special Mention		—		—		—		2,478		—		830		—	$	3,308
	Substandard		—		1,027		16		—		—		—		—	$	1,043
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		12		—		—		—		457		—	$	469
	Subtotal	$	27,401	$	106,085	$	104,323	$	96,507	$	4,774	$	113,446	$	9,177	$	461,713
	Current period gross charge-offs	$	675	$	-	$	-	$	-	$	20	$	-	$	-	$	695
Residential
Multifamily >5 Residential	Pass	$	34,551	$	62,845	$	32,273	$	22,590	$	6,397	$	23,215	$	382	$	182,253
	Special Mention		—		—		—		357		—		6,571		—	$	6,928
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,102		—		—		251		—	$	1,353
	Subtotal	$	34,551	$	62,845	$	33,375	$	22,947	$	6,397	$	30,410	$	382	$	190,907
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	248,561	$	450,056	$	346,276	$	202,457	$	94,211	$	421,033	$	163,479	$	1,926,073
	Special Mention		6		1,039		11,024		6,285		1,531		9,582		6,333	$	35,800
	Substandard		3,722		5,816		1,858		1,022		2,627		14,520		7,932	$	37,497
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		3,476		1,415		1,980		1,144		168		880		—	$	9,063
		$	255,765	$	458,326	$	361,138	$	210,908	$	98,537	$	446,015	$	177,744	$	2,008,433

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 and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming. These balances do not include accrued interest:

		June 30, 2024
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2024		2023		2022		2021		2020		Prior		Loans		Total
Residential
First Liens	Performing	$	24,841	$	47,700	$	68,600	$	61,857	$	34,392	$	124,100	$	671	$	362,161
	Non-performing		—		—		—		408		64		1,182		—	$	1,654
	Subtotal	$	24,841	$	47,700	$	68,600	$	62,265	$	34,456	$	125,282	$	671	$	363,815
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	14	$	-	$	14
Home Equity	Performing	$	174	$	124	$	54	$	29	$	90	$	1,333	$	65,461	$	67,265
	Non-performing		—		—		75		—		16		83		73	$	247
	Subtotal	$	174	$	124	$	129	$	29	$	106	$	1,416	$	65,534	$	67,512
	Current period gross charge-offs	$	-	$	-	$	22	$	-	$	-	$	-	$	20	$	42
Junior Liens	Performing	$	6,875	$	13,693	$	13,889	$	7,245	$	5,525	$	10,532	$	1,501	$	59,260
	Non-performing		—		102		—		—		64		166		—	$	332
	Subtotal	$	6,875	$	13,795	$	13,889	$	7,245	$	5,589	$	10,698	$	1,501	$	59,592
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Residential	Performing	$	498	$	7,385	$	7,717	$	2,703	$	398	$	1,994	$	234	$	20,929
	Non-performing		—		—		—		—		—		425		—	$	425
	Subtotal	$	498	$	7,385	$	7,717	$	2,703	$	398	$	2,419	$	234	$	21,354
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	137,531	$	227,663	$	175,727	$	52,729	$	32,161	$	7,238	$	12	$	633,061
	Non-performing		4		408		894		349		413		113		—	$	2,181
	Subtotal	$	137,535	$	228,071	$	176,621	$	53,078	$	32,574	$	7,351	$	12	$	635,242
	Current period gross charge-offs	$	49	$	1,369	$	2,408	$	987	$	354	$	57	$	-	$	5,224
Other Consumer	Performing	$	6,148	$	9,019	$	4,822	$	2,729	$	1,680	$	824	$	5,395	$	30,617
	Non-performing		—		64		36		102		26		5		39	$	272
	Subtotal	$	6,148	$	9,083	$	4,858	$	2,831	$	1,706	$	829	$	5,434	$	30,889
	Current period gross charge-offs	$	-	$	62	$	57	$	5	$	7	$	9	$	84	$	224
Total	Performing	$	176,067	$	305,584	$	270,809	$	127,292	$	74,246	$	146,021	$	73,274	$	1,173,293
	Non-performing		4		574		1,005		859		583		1,974		112	$	5,111
Total other loans		$	176,071	$	306,158	$	271,814	$	128,151	$	74,829	$	147,995	$	73,386	$	1,178,404

		December 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	49,146	$	70,952	$	65,232	$	36,751	$	15,185	$	118,087	$	1,066	$	356,419
	Non-performing		—		121		—		65		57		1,504		—	$	1,747
	Subtotal	$	49,146	$	71,073	$	65,232	$	36,816	$	15,242	$	119,591	$	1,066	$	358,166
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	167	$	-	$	167
Home Equity	Performing	$	61	$	68	$	—	$	7	$	378	$	866	$	64,102	$	65,482
	Non-performing		—		22		—		17		—		60		—	$	99
	Subtotal	$	61	$	90	$	—	$	24	$	378	$	926	$	64,102	$	65,581
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	15,050	$	15,431	$	8,248	$	5,557	$	4,280	$	8,094	$	1,698	$	58,358
	Non-performing		—		53		45		104		—		103		—	$	305
	Subtotal	$	15,050	$	15,484	$	8,293	$	5,661	$	4,280	$	8,197	$	1,698	$	58,663
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	24	$	24	$	-	$	48
Other Residential	Performing	$	6,432	$	9,477	$	3,100	$	421	$	641	$	1,511	$	415	$	21,997
	Non-performing		—		—		46		—		390		38		—	$	474
	Subtotal	$	6,432	$	9,477	$	3,146	$	421	$	1,031	$	1,549	$	415	$	22,471
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	1
Consumer
Motor Vehicle	Performing	$	264,933	$	215,125	$	70,926	$	46,939	$	12,038	$	2,177	$	—	$	612,138
	Non-performing		232		973		520		532		134		30		—	$	2,421
	Subtotal	$	265,165	$	216,098	$	71,446	$	47,471	$	12,172	$	2,207	$	—	$	614,559
	Current period gross charge-offs	$	841	$	7,722	$	3,101	$	1,448	$	499	$	174	$	-	$	13,785
Other Consumer	Performing	$	12,561	$	6,895	$	3,778	$	2,189	$	659	$	692	$	5,203	$	31,977
	Non-performing		—		20		145		39		17		—		1	$	222
	Subtotal	$	12,561	$	6,915	$	3,923	$	2,228	$	676	$	692	$	5,204	$	32,199
	Current period gross charge-offs	$	61	$	213	$	61	$	37	$	3	$	5	$	149	$	529
Total	Performing	$	348,183	$	317,948	$	151,284	$	91,864	$	33,181	$	131,427	$	72,484	$	1,146,371
	Non-performing		232		1,189		756		757		598		1,735		1	$	5,268
Total other loans		$	348,415	$	319,137	$	152,040	$	92,621	$	33,779	$	133,162	$	72,485	$	1,151,639

XML

Securities

6 Months Ended

Jun. 30, 2024

Securities

Securities

4.    Securities

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

	June 30, 2024
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	98,999	$	7	$	(12,076)	$	86,930
Mortgage Backed Securities - residential		630,097		85		(86,427)		543,755
Mortgage Backed Securities - commercial		7,843		—		(399)		7,444
Collateralized mortgage obligations		199,245		9		(28,946)		170,308
State and municipal obligations		392,250		347		(32,760)		359,837
Municipal taxable		39,616		1		(5,499)		34,118
U.S. Treasury		470		—		(3)		467
Collateralized debt obligations		—		2,892		—		2,892
TOTAL	$	1,368,520	$	3,341	$	(166,110)	$	1,205,751

	December 31, 2023
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	102,978	$	4	$	(11,542)	$	91,440
Mortgage Backed Securities-residential		653,507		53		(83,675)		569,885
Mortgage Backed Securities-commercial		7,919		—		(436)		7,483
Collateralized mortgage obligations		209,398		6		(28,575)		180,829
State and municipal obligations		397,413		1,407		(28,009)		370,811
Municipal taxable		39,872		12		(5,599)		34,285
U.S. Treasury		1,411		—		(9)		1,402
Collateralized debt obligations		—		3,002		—		3,002
TOTAL	$	1,412,498	$	4,484	$	(157,845)	$	1,259,137

Contractual maturities of debt securities at June 30, 2024 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	8,545	$	8,472
Due after one but within five years		44,994		43,141
Due after five but within ten years		108,667		104,810
Due after ten years		369,129		327,821
		531,335		484,244
Mortgage-backed securities and collateralized mortgage obligations		837,185		721,507
TOTAL	$	1,368,520	$	1,205,751

There were no gross gains and losses from investment sales/calls realized by the Corporation for the three and six months ended June 30, 2024, and June 30, 2023.

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 June 30, 2024 and December 31, 2023.

	June 30, 2024
	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	$	—	$	—	$	86,212	$	(12,076)	$	86,212	$	(12,076)
Mortgage Backed Securities - Residential		8,455		(69)		526,511		(86,358)		534,966		(86,427)
Mortgage Backed Securities - Commercial		—		—		7,444		(399)		7,444		(399)
Collateralized mortgage obligations		—		—		167,423		(28,946)		167,423		(28,946)
State and municipal obligations		69,381		(531)		246,421		(32,229)		315,802		(32,760)
Municipal taxable		1,308		(7)		31,809		(5,492)		33,117		(5,499)
U.S. Treasury		468		(3)		—		—		468		(3)
Total temporarily impaired securities	$	79,612	$	(610)	$	1,065,820	$	(165,500)	$	1,145,432	$	(166,110)

	December 31, 2023
	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	$	3,757	$	(73)	$	87,291	$	(11,469)	$	91,048	$	(11,542)
Mortgage Backed Securities - Residential		3,810		(41)		556,414		(83,634)		560,224		(83,675)
Mortgage Backed Securities - Commercial		—		—		7,483		(436)		7,483		(436)
Collateralized mortgage obligations		12,981		(303)		164,871		(28,272)		177,852		(28,575)
State and municipal obligations		45,154		(319)		212,022		(27,690)		257,176		(28,009)
Municipal taxable		—		—		31,958		(5,599)		31,958		(5,599)
U.S. Treasury		1,402		(9)		—		—		1,402		(9)
Total temporarily impaired securities	$	67,104	$	(745)	$	1,060,039	$	(157,100)	$	1,127,143	$	(157,845)

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 $166.1 million as of June 30, 2024 and $157.8 million as of December 31, 2023. 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. The portfolio contains primarily government agency, agency backed mortgage backed securities (“MBS”), and collateralized mortgage obligations (“CMO”), which are issued by government sponsored enterprises and are backed by the full faith and credit of the United States government. Secondarily, the Corporation invests in municipal securities issued by state and local governments. Of these, almost half are either insured or contain state enhancements. On the remaining, credit is monitored by the investment committee. 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.

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollar amounts in thousands)	2024		2023		2024		2023
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

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Qualified Affordable Housing Project Investments

6 Months Ended

Jun. 30, 2024

Qualified Affordable Housing Project Investments

Qualified Affordable Housing Project Investments

5.    Qualified Affordable Housing Project Investments

The Corporation invests in qualified affordable housing projects. The balance of investment for qualified housing projects was $28.9 million at June 30, 2024 and $7.8 million at December 31, 2023. These balances are reflected in the other assets line on the consolidated balance sheets. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $20.6 million at June 30, 2024. The Corporation expects to fulfill these commitments by the end of December 31, 2037.

The Corporation recognized amortization expense of $211 thousand during the six months ended June 30, 2024, and $390 thousand during the six months ended June 30, 2023, which was included within other noninterest expense on the consolidated statements of income. The Corporation recognized amortization expense of $847 thousand during the six months ended June 30, 2024, which was included within income tax expense on the consolidated statements of income. Additionally, the Corporation recognized tax credits and other benefits from its investment in affordable housing tax credits of $1.6 million during the six months ended June 30, 2024, and $674 thousand during the six months ended June 30, 2023.

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Fair Value

6 Months Ended

Jun. 30, 2024

Fair Value

Fair Value

6.    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 and investments in state and municipal securities. 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).

	June 30, 2024
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	86,930	$	—	$	86,930
Mortgage Backed Securities-residential		—		543,755		—		543,755
Mortgage Backed Securities-commercial		—		7,444		—		7,444
Collateralized mortgage obligations		—		170,308		—		170,308
State and municipal		—		359,032		805		359,837
Municipal taxable		—		34,118		—		34,118
U.S. Treasury		—		467		—		467
Collateralized debt obligations		—		—		2,892		2,892
TOTAL	$	—	$	1,202,054	$	3,697	$	1,205,751
Derivative Assets				2,994
Derivative Liabilities				(2,994)

	December 31, 2023
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	91,440	$	—	$	91,440
Mortgage Backed Securities-residential		—		569,885		—		569,885
Mortgage Backed Securities-commercial		—		7,483		—		7,483
Collateralized mortgage obligations		—		180,829		—		180,829
State and municipal		—		369,631		1,180		370,811
Municipal taxable		—		34,285		—		34,285
U.S. Treasury		—		1,402		—		1,402
Collateralized debt obligations		—		—		3,002		3,002
TOTAL	$	—	$	1,254,955	$	4,182	$	1,259,137
Derivative Assets				2,878
Derivative Liabilities				(2,878)

There were no transfers between Level 1 and Level 2 during 2024 and 2023.

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 six months ended June 30, 2024 and the year ended December 31, 2023.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	June 30, 2024
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, April 1	$	805	$	2,888	$	3,693
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		4		4
Transfers		—		—		—
Settlements		—		—		—
Ending balance, June 30	$	805	$	2,892	$	3,697

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Six Months Ended
	June 30, 2024
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,180	$	3,002	$	4,182
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		(110)		(110)
Transfers		—		—		—
Settlements		(375)		—		(375)
Ending balance, June 30	$	805	$	2,892	$	3,697

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,545	$	2,986	$	4,531
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		16		16
Purchases		—		—		—
Settlements		(365)		—		(365)
Ending balance, December 31	$	1,180	$	3,002	$	4,182

Other real estate owned is valued at Level 3. Other real estate owned at June 30, 2024 with a value of $170 thousand was reduced by $32 thousand for fair value adjustment. At June 30, 2024 other real estate owned was comprised of $170 thousand from residential loans. Other real estate owned at December 31, 2023 with a value of $107 thousand was reduced by $57 thousand for fair value adjustment. At December 31, 2023 other real estate owned was comprised of $26 thousand from commercial loans and $81 thousand from residential loans.

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 5% to 100% with an average discount of 65%. 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 table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at June 30, 2024.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	805	Discounted cash flow	Discount rate	4.24%-4.44	%
Collateralized debt obligations	$	2,892	Discounted cash flow	Discount rate	7.27	%
Collateral dependent loans	$	5,103	Discounted cash flow	Discount rate for age of appraisal and market conditions	5.00%-100.00	%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2023.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,180	Discounted cash flow	Discount rate	4.04%-4.44	%
Collateralized debt obligations	$	3,002	Discounted cash flow	Discount rate	7.36	%
Collateral dependent loans		11,306	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-100.00	%

The carrying amounts and estimated fair value of financial instruments at June 30, 2024 and December 31, 2023, 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.

	June 30, 2024
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	75,073	$	24,820	$	50,253	$	—	$	75,073
Federal funds sold		—		—		—		—		—
Securities available-for-sale		1,205,751		—		1,202,054		3,697		1,205,751
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,165,675		—		—		3,030,377		3,030,377
Accrued interest receivable		23,733		—		6,558		17,175		23,733
Deposits		(4,132,327)		—		(4,130,751)		—		(4,130,751)
Short-term borrowings		(38,211)		—		(38,211)		—		(38,211)
Other borrowings		(108,575)		—		(108,507)		—		(108,507)
Accrued interest payable		(3,213)		—		(3,213)		—		(3,213)

	December 31, 2023
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	76,759	$	25,467	$	51,292	$	—	$	76,759
Federal funds sold		282		—		282		—		282
Securities available-for-sale		1,259,137		—		1,254,955		4,182		1,259,137
Restricted stock		15,364		n/a		n/a		n/a		n/a
Loans, net		3,128,054		—		—		3,025,621		3,025,621
Accrued interest receivable		24,877		—		6,755		18,122		24,877
Deposits		(4,090,068)		—		(4,094,552)		—		(4,094,552)
Short-term borrowings		(67,221)		—		(67,221)		—		(67,221)
Other borrowings		(108,577)		—		(108,496)		—		(108,496)
Accrued interest payable		(2,588)		—		(2,588)		—		(2,588)

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Borrowings

6 Months Ended

Jun. 30, 2024

Borrowings

Borrowings

7.    Borrowings

Short-term borrowings:

Period–end short-term borrowings were comprised of the following:

(Dollar amounts in thousands)	June 30, 2024		December 31, 2023
Federal Funds Purchased	$	3,125	$	27,300
Repurchase Agreements		35,086		39,921
	$	38,211	$	67,221

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:

	June 30, 2024
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	29,711	$	300	$	—	$	5,075	$	35,086

	December 31, 2023
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	32,319	$	300	$	3,637	$	3,665	$	39,921

Other borrowings:

Other borrowings at June 30, 2024 and December 31, 2023 are summarized as follows:

(Dollar amounts in thousands)	June 30, 2024		December 31, 2023
FHLB advances	$	83,575	$	108,577
Notes payable		25,000		—
TOTAL	$	108,575	$	108,577

The aggregate minimum annual retirements of other borrowings are as follows:

Twelve Months Ended June 30,

2025	$	78,605
2026		4,970
2027		25,000
2028		—
2029		—
Thereafter		—
	$	108,575

At June 30, 2024 and December 31, 2023, other borrowings are summarized as follows: The Corporation’s subsidiary bank is a member of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances. There are $83.6 million of advances from the FHLB at June 30, 2024, and $108.6 million of advances at December 31, 2023. FHLB advances are, generally due in full at maturity. They are secured by eligible securities and a blanket pledge on real estate loan collateral. In addition the Corporation secured a note payable to a commercial bank in the quarter for $25 million.

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Components of Net Periodic Benefit Cost

6 Months Ended

Jun. 30, 2024

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

8.    Components of Net Periodic Benefit Cost

	Three Months Ended June 30,								Six Months Ended June 30,
					Post-Retirement								Post-Retirement
	Pension Benefits				Health Benefits				Pension Benefits				Health Benefits
(Dollar amounts in thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Service cost	$	141	$	157	$	4	$	5	$	282	$	314	$	8	$	10
Interest cost		947		956		35		39		1,894		1,912		69		77
Expected return on plan assets		(1,052)		(969)		—		—		(2,103)		(1,939)		—		—
Net amortization of prior service cost		—		—		—		—		—		—		—		—
Net amortization of net (gain) loss		108		188		(20)		(13)		217		376		(40)		(26)
Net Periodic Benefit Cost	$	144	$	332	$	19	$	31	$	290	$	663	$	37	$	61

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2023 that it expected to contribute $3.9 million and $604 thousand respectively to its Pension Plan and ESOP and $249 thousand to the Post Retirement Health Benefits Plan in 2024. Contributions of $526 thousand have been made to the Pension Plan thus far in 2024. Contributions of $134 thousand have been made through the first six months of 2024 for the Post Retirement Health Benefits plan. No contributions have been made in 2024 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 six months of 2024 and 2023 there has been $1.6 million and $1.3 million of expense accrued for potential contributions to these alternative retirement benefit options.

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Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2024

Revenue from Contracts with Customers

Revenue from Contracts with Customers

9.    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 six months ended June 30, 2024 and 2023. Items outside the scope of ASC 606 are noted as such.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollar amounts in thousands)	2024		2023		2024		2023
Non-interest income
Service charges on deposits and debit card fee income	$	6,730	$	7,054	$	13,437	$	13,872
Asset management fees		1,318		1,185		2,652		2,502
Interchange income		135		—		314		47
Net gains on sales of loans (a)		299		311		475		490
Loan servicing fees (a)		414		264		683		549
Other service charges and fees (a)		286		196		509		400
Other (b)		723		1,443		1,266		1,968
Total non-interest income	$	9,905	$	10,453	$	19,336	$	19,828

(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 June 30, 2024 and June 30, 2023, totaling $79 thousand and $(37) thousand, respectively, and for the six months ended for the same periods, totaling $87 thousand and $(31) thousand, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.

(c)

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.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2024

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

10.   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 six months ended June 30, 2024 and 2023.

	Unrealized
	gains and
	(Losses) on available-		2024
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, April 1,	$	(129,096)	$	(9,014)	$	(138,110)
Change in other comprehensive income (loss) before reclassification		3,535		—		3,535
Amounts reclassified from accumulated other comprehensive income		—		74		74
Net current period other comprehensive income (loss)		3,535		74		3,609
Ending balance, June 30,	$	(125,561)	$	(8,940)	$	(134,501)

	Unrealized
	gains and
	(Losses) on available-		2024
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(118,000)	$	(9,087)	$	(127,087)
Change in other comprehensive income (loss) before reclassification		(7,561)		—		(7,561)
Amounts reclassified from accumulated other comprehensive income		—		147		147
Net current period other comprehensive income (loss)		(7,561)		147		(7,414)
Ending balance, June 30,	$	(125,561)	$	(8,940)	$	(134,501)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, April 1,	$	(114,658)	$	(10,931)	$	(125,589)
Change in other comprehensive income (loss) before reclassification		(15,808)		—		(15,808)
Amounts reclassified from accumulated other comprehensive income		—		147		147
Net current period other comprehensive income (loss)		(15,808)		147		(15,661)
Ending balance, June 30,	$	(130,466)	$	(10,784)	$	(141,250)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(128,896)	$	(11,078)	$	(139,974)
Change in other comprehensive income (loss) before reclassification		(1,570)		—		(1,570)
Amounts reclassified from accumulated other comprehensive income		—		294		294
Net current period other comprehensive income (loss)		(1,570)		294		(1,276)
Ending balance, June 30,	$	(130,466)	$	(10,784)	$	(141,250)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	4/1/2024		Change		6/30/2024
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,262)	$	3,532	$	(127,730)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,166		3		2,169
Total unrealized loss on securities available-for-sale	$	(129,096)	$	3,535	$	(125,561)
Unrealized gain (loss) on retirement plans		(9,014)		74		(8,940)
TOTAL	$	(138,110)	$	3,609	$	(134,501)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2024		Change		6/30/2024
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(120,252)	$	(7,478)	$	(127,730)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,252		(83)		2,169
Total unrealized gain (loss) on securities available-for-sale	$	(118,000)	$	(7,561)	$	(125,561)
Unrealized gain (loss) on retirement plans		(9,087)		147		(8,940)
TOTAL	$	(127,087)	$	(7,414)	$	(134,501)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	4/1/2023		Change		6/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(116,844)	$	(15,827)	$	(132,671)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,186		19		2,205
Total unrealized gain (loss) on securities available-for-sale	$	(114,658)	$	(15,808)	$	(130,466)
Unrealized loss on retirement plans		(10,931)		147		(10,784)
TOTAL	$	(125,589)	$	(15,661)	$	(141,250)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2023		Change		6/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,135)	$	(1,536)	$	(132,671)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,239		(34)		2,205
Total unrealized income (loss) on securities available-for-sale	$	(128,896)	$	(1,570)	$	(130,466)
Unrealized gain (loss) on retirement plans		(11,078)		294		(10,784)
TOTAL	$	(139,974)	$	(1,276)	$	(141,250)

	Three Months Ended June 30, 2024
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(195)	(a)	Salary and benefits
retirement plan items		48		Income tax expense
	$	(147)		Net of tax
Total reclassifications for the period	$	(147)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Six Months Ended June 30, 2024
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(98)	(a)	Salary and benefits
retirement plan items		24		Income tax expense
	$	(74)		Net of tax
Total reclassifications for the period	$	(74)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Three Months Ended June 30, 2023
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(196)	(a)	Salary and benefits
retirement plan items		49		Income tax expense
	$	(147)		Net of tax
Total reclassifications for the period	$	(147)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Six Months Ended June 30, 2023
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(392)	(a)	Salary and benefits
retirement plan items		98		Income tax expense
	$	(294)		Net of tax
Total reclassifications for the period	$	(294)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

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Leases

6 Months Ended

Jun. 30, 2024

Leases

Leases

11.   Leases

The Corporation leases certain branches under operating leases. At June 30, 2024, the Corporation had lease liabilities totaling $5,468,000 and right-of-use assets totaling $5,396,000 related to these leases. At December 31, 2023, the Corporation had lease liabilities totaling $5,456,000 and right-of-use assets totaling $5,392,000 related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At June 30, 2024, the weighted average remaining lease term for operating leases was 8.5 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.28%.

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:

	Six Months Ended
(Dollar amounts in thousands)	June 30, 2024
Operating lease cost	$	487
Short-term lease cost		55
Variable lease cost		18
Total lease cost	$	560
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities		487
Right-of-use assets obtained in exchange for new operating lease liabilities		429

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024 were as follows:

(Dollar amounts in thousands)	June 30, 2024
Twelve Months Ended June 30,
2025	$	986
2026		927
2027		863
2028		847
2029		548
Thereafter		2,007
Total Future Minimum Lease Payments		6,178
Amounts Representing Interest		(710)
Present Value of Net Future Minimum Lease Payments	$	5,468

XML

Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events

Subsequent Events

12.   Subsequent Events

On July 1, 2024, First Financial Corporation, an Indiana corporation (“FFC”) and First Financial Bank, National Association, a national banking association and wholly-owned subsidiary of FFC (“First Financial Bank”) completed their previously announced acquisition of SimplyBank., a Tennessee-chartered commercial bank (“SimplyBank”), pursuant to the Agreement and Plan of Reorganization by and among FFC, First Financial Bank, SimplyBank, and FFB Interim Bank, National Association, a wholly owned subsidiary of FFC (“Merger Sub”) dated as of November 13, 2023 (the “Merger Agreement”). On the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub merged with and into SimplyBank (the “Interim Merger”), with SimplyBank continuing as the surviving entity. Immediately following the Interim Merger, SimplyBank merged with and into First Financial Bank, with First Financial Bank as the surviving entity (the “Bank Merger”).

Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Interim Merger (the “Effective Time”), other than dissenting shares, each share of SimplyBank Common Stock issued and outstanding immediately prior to the Effective Time, was converted into the right to receive $718.38 per share in cash. The aggregate value of the transaction was approximately $73.4 million.

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 11,369	$ 15,987	$ 22,293	$ 31,967

XML

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Nonrule10b51arrmodifiedFlag	false
Rule10b51arrmodifiedFlag	false

XML

Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Allowance for Credit Losses

Schedule of allowances for loan losses by portfolio segment

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

Allowance for Credit Losses:			June 30, 2024
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	13,579	$	14,233	$	11,919	$	314	$	40,045
Provision for credit losses		1,811		93		1,367		(305)		2,966
Loans charged-off		(3,548)		(42)		(2,501)		—		(6,091)
Recoveries		173		40		1,201		—		1,414
Ending Balance	$	12,015	$	14,324	$	11,986	$	9	$	38,334

Allowance for Credit Losses:			June 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,790	$	15,059	$	11,513	$	258	$	39,620
Provision for credit losses		(377)		166		1,733		278		1,800
Loans charged-off		(209)		(63)		(3,271)		—		(3,543)
Recoveries		246		106		1,678		—		2,030
Ending Balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907

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

Allowance for Credit Losses:			June 30, 2024
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	13,264	$	14,327	$	11,797	$	379	$	39,767
Provision for credit losses		2,082		(80)		3,134		(370)		4,766
Loans charged -off		(3,779)		(56)		(5,448)		—		(9,283)
Recoveries		448		133		2,503		—		3,084
Ending Balance	$	12,015	$	14,324	$	11,986	$	9	$	38,334

Allowance for Credit Losses:			June 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,949	$	14,568	$	12,104	$	158	$	39,779
Provision for credit losses		(431)		666		2,987		378		3,600
Loans charged -off		(515)		(142)		(7,262)		—		(7,919)
Recoveries		447		176		3,824		—		4,447
Ending Balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907

Schedule of recorded investment in non-performing loans by class of loans

	June 30, 2024
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	303	$	6,072	$	34
Farmland		—		1,218		1,201
Non Farm, Non Residential		112		907		476
Agriculture		—		934		893
All Other Commercial		—		996		980
Residential
First Liens		567		963		32
Home Equity		136		111		—
Junior Liens		262		74		—
Multifamily		—		426		373
All Other Residential		—		407		348
Consumer
Motor Vehicle		—		2,218		—
All Other Consumer		—		237		—
TOTAL	$	1,380	$	14,563	$	4,337

	December 31, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	5	$	13,971	$	860
Farmland		—		1,221		1,201
Non Farm, Non Residential		—		995		1,011
Agriculture		—		1,147		1,103
All Other Commercial		—		1,046		1,027
Residential
First Liens		620		960		—
Home Equity		32		68		—
Junior Liens		239		67		—
Multifamily		47		543		373
All Other Residential		—		427		—
Consumer
Motor Vehicle		45		2,933		—
All Other Consumer		—		218		—
TOTAL	$	988	$	23,596	$	5,575

Schedule of amortized cost basis of collateral dependent loans

	June 30, 2024
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	598	$	5,117
Farmland		1,620		—
Non Farm, Non Residential		3,759		—
Agriculture		—		893
All Other Commercial		980		—
Residential
First Liens		32		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		348		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	7,710	$	6,010

	December 31, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	1,454	$	12,056
Farmland		1,633		—
Non Farm, Non Residential		3,919		—
Agriculture		49		1,054
All Other Commercial		1,027		—
Residential
First Liens		32		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		349		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	8,836	$	13,110

Schedule of aging of the recorded investment in loans by past due category and class of loans

	June 30, 2024
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	616	$	1,273	$	1,844	$	3,733	$	532,154	$	535,887
Farmland		362		—		1,202		1,564		128,966		130,530
Non Farm, Non Residential		—		304		114		418		538,947		539,365
Agriculture		262		—		930		1,192		128,050		129,242
All Other Commercial		14		—		—		14		459,116		459,130
Residential
First Liens		678		921		876		2,475		362,596		365,071
Home Equity		314		389		220		923		66,824		67,747
Junior Liens		384		60		283		727		59,041		59,768
Multifamily		—		166		373		539		236,145		236,684
All Other Residential		—		211		377		588		20,859		21,447
Consumer
Motor Vehicle		9,561		1,312		590		11,463		626,746		638,209
All Other Consumer		442		103		67		612		30,445		31,057
TOTAL	$	12,633	$	4,739	$	6,876	$	24,248	$	3,189,889	$	3,214,137

	December 31, 2023
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	668	$	488	$	1,136	$	2,292	$	649,801	$	652,093
Farmland		58		—		1,201		1,259		132,147		133,406
Non Farm, Non Residential		—		—		—		—		439,009		439,009
Agriculture		—		—		1,141		1,141		139,900		141,041
All Other Commercial		—		—		—		—		464,776		464,776
Residential
First Liens		2,841		816		924		4,581		354,711		359,292
Home Equity		360		188		71		619		65,191		65,810
Junior Liens		462		124		262		848		57,985		58,833
Multifamily		117		140		373		630		191,104		191,734
All Other Residential		554		—		47		601		21,961		22,562
Consumer
Motor Vehicle		12,491		1,754		761		15,006		602,442		617,448
All Other Consumer		397		102		13		512		31,857		32,369
TOTAL	$	17,948	$	3,612	$	5,929	$	27,489	$	3,150,884	$	3,178,373

Schedule of loans and leases that were modified and the financial effect of loan and lease modifications

The following table presents the amortized cost of loans and leases at June 30, 2024 that were both experiencing financial difficulty and modified during the twelve months ended June 30, 2024, by class and by type of modification.

										Combination		Combination
										Term		Term		Total
										Extension and		Extension		Class of
	Principal		Payment		Term		Interest Rate			Principal		Interest Rate		Financing
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivable
Residential
First Liens	$	—	$	—	$	—	$	—	$	—	$	25		0.01	%
Junior Liens		—		—		28		—		—		—		0.05	%
Consumer
Motor Vehicle		27		—		293		27		110		107		0.09	%
TOTAL	$	27	$	—	$	321	$	27	$	110	$	132		0.02	%

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the twelve months ended June 30, 2024.

			Weighted-			Weighted-
			Average			Average
	Principal		Interest Rate			Term
(Dollar amounts in thousands)	Forgiveness		Reduction			Extension
Residential
First Liens	$	—		2.75	%		24
Junior Liens		—		—			36
Consumer
Motor Vehicle		56		2.89	%		21
TOTAL	$	56		2.87	%		22

Schedule of performance of loans and leases that have been modified to borrowers experiencing financial difficulty

	June 30, 2024
	30 - 59		60 - 89		Greater Than
	Days		Days		89 Days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due
Consumer
Motor Vehicle	$	2	$	19	$	7	$	28
TOTAL	$	2	$	19	$	7	$	28

Schedule of amortized cost basis of modified loans that had a payment after modification in the twelve months prior

The following table presents the amortized cost basis of loans that had a payment default during the twelve months ended June 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

	Principal		Payment		Term		Interest Rate
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction
Consumer
Motor Vehicle	$	—	$		$	28	$	—
TOTAL	$	—	$	—	$	28	$	—

Schedule of commercial loan portfolio by risk category

		June 30, 2024
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2024		2023		2022		2021		2020		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	52,615	$	39,032	$	114,470	$	73,432	$	36,682	$	98,079	$	72,107	$	486,417
	Special Mention		—		8,175		715		9,749		3,318		1,375		2,593	$	25,925
	Substandard		3,615		707		1,700		4,140		132		7,048		—	$	17,342
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		863		1,131		993		531		278		125		—	$	3,921
	Subtotal	$	57,093	$	49,045	$	117,878	$	87,852	$	40,410	$	106,627	$	74,700	$	533,605
	Current period gross charge-offs	$	-	$	-	$	105	$	3,264	$	10	$	48	$	-	$	3,427
Farmland	Pass	$	7,978	$	20,439	$	15,613	$	19,574	$	7,747	$	54,037	$	224	$	125,612
	Special Mention		—		—		—		—		—		1,047		—	$	1,047
	Substandard		—		—		—		—		40		1,710		—	$	1,750
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		14		—	$	14
	Subtotal	$	7,978	$	20,439	$	15,613	$	19,574	$	7,787	$	56,808	$	224	$	128,423
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	50,043	$	79,663	$	135,958	$	98,953	$	22,032	$	135,940	$	4,755	$	527,344
	Special Mention		—		—		700		975		—		827		—	$	2,502
	Substandard		662		55		184		—		—		6,248		—	$	7,149
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		668		64		—	$	732
	Subtotal	$	50,705	$	79,718	$	136,842	$	99,928	$	22,700	$	143,079	$	4,755	$	537,727
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	4,811	$	8,730	$	10,061	$	5,669	$	5,391	$	25,472	$	62,249	$	122,383
	Special Mention		—		—		84		—		5		599		2,640	$	3,328
	Substandard		—		—		53		—		—		903		—	$	956
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		11		—		34		26		29		4		—	$	104
	Subtotal	$	4,822	$	8,730	$	10,232	$	5,695	$	5,425	$	26,978	$	64,889	$	126,771
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	15,398	$	32,721	$	103,023	$	92,936	$	92,515	$	108,130	$	9,160	$	453,883
	Special Mention		—		—		—		—		—		795		—	$	795
	Substandard		—		—		980		14		—		—		—	$	994
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		10		—		—		438		—	$	448
	Subtotal	$	15,398	$	32,721	$	104,013	$	92,950	$	92,515	$	109,363	$	9,160	$	456,120
	Current period gross charge-offs	$	252	$	100	$	-	$	-	$	-	$	-	$	-	$	352
Residential
Multifamily >5 Residential	Pass	$	22,380	$	53,605	$	70,093	$	31,496	$	22,217	$	26,399	$	458	$	226,648
	Special Mention		—		—		232		—		350		6,397		—	$	6,979
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		1,090		—		680		—	$	1,770
	Subtotal	$	22,380	$	53,605	$	70,325	$	32,586	$	22,567	$	33,849	$	458	$	235,770
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	153,225	$	234,190	$	449,218	$	322,060	$	186,584	$	448,057	$	148,953	$	1,942,287
	Special Mention		—		8,175		1,731		10,724		3,673		11,040		5,233	$	40,576
	Substandard		4,277		762		2,917		4,154		172		16,282		—	$	28,564
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		874		1,131		1,037		1,647		975		1,325		—	$	6,989
		$	158,376	$	244,258	$	454,903	$	338,585	$	191,404	$	476,704	$	154,186	$	2,018,416

		December 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	80,873	$	131,522	$	112,811	$	47,445	$	44,257	$	100,872	$	81,551	$	599,331
	Special Mention		6		221		10,025		3,442		323		866		2,715	$	17,598
	Substandard		3,620		4,734		1,842		981		1,789		5,354		7,932	$	26,252
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		3,476		1,352		847		431		144		93		—	$	6,343
	Subtotal	$	87,975	$	137,829	$	125,525	$	52,299	$	46,513	$	107,185	$	92,198	$	649,524
	Current period gross charge-offs	$	8	$	72	$	40	$	78	$	24	$	49	$	-	$	271
Farmland	Pass	$	21,232	$	16,025	$	20,794	$	8,310	$	8,790	$	52,357	$	287	$	127,795
	Special Mention		—		—		4		—		363		710		—	$	1,077
	Substandard		—		—		—		41		309		1,370		—	$	1,720
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		14		—	$	14
	Subtotal	$	21,232	$	16,025	$	20,798	$	8,351	$	9,462	$	54,451	$	287	$	130,606
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	73,740	$	123,319	$	69,477	$	23,965	$	22,550	$	106,752	$	7,606	$	427,409
	Special Mention		—		732		995		—		845		—		—	$	2,572
	Substandard		102		—		—		—		479		6,356		—	$	6,937
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		678		—		65		—	$	743
	Subtotal	$	73,842	$	124,051	$	70,472	$	24,643	$	23,874	$	113,173	$	7,606	$	437,661
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	10,764	$	11,299	$	6,614	$	6,118	$	7,443	$	25,678	$	64,476	$	132,392
	Special Mention		—		86		—		8		—		605		3,618	$	4,317
	Substandard		—		55		—		—		50		1,067		—	$	1,172
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		51		31		35		24		—		—	$	141
	Subtotal	$	10,764	$	11,491	$	6,645	$	6,161	$	7,517	$	27,350	$	68,094	$	138,022
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	27,401	$	105,046	$	104,307	$	94,029	$	4,774	$	112,159	$	9,177	$	456,893
	Special Mention		—		—		—		2,478		—		830		—	$	3,308
	Substandard		—		1,027		16		—		—		—		—	$	1,043
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		12		—		—		—		457		—	$	469
	Subtotal	$	27,401	$	106,085	$	104,323	$	96,507	$	4,774	$	113,446	$	9,177	$	461,713
	Current period gross charge-offs	$	675	$	-	$	-	$	-	$	20	$	-	$	-	$	695
Residential
Multifamily >5 Residential	Pass	$	34,551	$	62,845	$	32,273	$	22,590	$	6,397	$	23,215	$	382	$	182,253
	Special Mention		—		—		—		357		—		6,571		—	$	6,928
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,102		—		—		251		—	$	1,353
	Subtotal	$	34,551	$	62,845	$	33,375	$	22,947	$	6,397	$	30,410	$	382	$	190,907
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	248,561	$	450,056	$	346,276	$	202,457	$	94,211	$	421,033	$	163,479	$	1,926,073
	Special Mention		6		1,039		11,024		6,285		1,531		9,582		6,333	$	35,800
	Substandard		3,722		5,816		1,858		1,022		2,627		14,520		7,932	$	37,497
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		3,476		1,415		1,980		1,144		168		880		—	$	9,063
		$	255,765	$	458,326	$	361,138	$	210,908	$	98,537	$	446,015	$	177,744	$	2,008,433

		June 30, 2024
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2024		2023		2022		2021		2020		Prior		Loans		Total
Residential
First Liens	Performing	$	24,841	$	47,700	$	68,600	$	61,857	$	34,392	$	124,100	$	671	$	362,161
	Non-performing		—		—		—		408		64		1,182		—	$	1,654
	Subtotal	$	24,841	$	47,700	$	68,600	$	62,265	$	34,456	$	125,282	$	671	$	363,815
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	14	$	-	$	14
Home Equity	Performing	$	174	$	124	$	54	$	29	$	90	$	1,333	$	65,461	$	67,265
	Non-performing		—		—		75		—		16		83		73	$	247
	Subtotal	$	174	$	124	$	129	$	29	$	106	$	1,416	$	65,534	$	67,512
	Current period gross charge-offs	$	-	$	-	$	22	$	-	$	-	$	-	$	20	$	42
Junior Liens	Performing	$	6,875	$	13,693	$	13,889	$	7,245	$	5,525	$	10,532	$	1,501	$	59,260
	Non-performing		—		102		—		—		64		166		—	$	332
	Subtotal	$	6,875	$	13,795	$	13,889	$	7,245	$	5,589	$	10,698	$	1,501	$	59,592
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Residential	Performing	$	498	$	7,385	$	7,717	$	2,703	$	398	$	1,994	$	234	$	20,929
	Non-performing		—		—		—		—		—		425		—	$	425
	Subtotal	$	498	$	7,385	$	7,717	$	2,703	$	398	$	2,419	$	234	$	21,354
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	137,531	$	227,663	$	175,727	$	52,729	$	32,161	$	7,238	$	12	$	633,061
	Non-performing		4		408		894		349		413		113		—	$	2,181
	Subtotal	$	137,535	$	228,071	$	176,621	$	53,078	$	32,574	$	7,351	$	12	$	635,242
	Current period gross charge-offs	$	49	$	1,369	$	2,408	$	987	$	354	$	57	$	-	$	5,224
Other Consumer	Performing	$	6,148	$	9,019	$	4,822	$	2,729	$	1,680	$	824	$	5,395	$	30,617
	Non-performing		—		64		36		102		26		5		39	$	272
	Subtotal	$	6,148	$	9,083	$	4,858	$	2,831	$	1,706	$	829	$	5,434	$	30,889
	Current period gross charge-offs	$	-	$	62	$	57	$	5	$	7	$	9	$	84	$	224
Total	Performing	$	176,067	$	305,584	$	270,809	$	127,292	$	74,246	$	146,021	$	73,274	$	1,173,293
	Non-performing		4		574		1,005		859		583		1,974		112	$	5,111
Total other loans		$	176,071	$	306,158	$	271,814	$	128,151	$	74,829	$	147,995	$	73,386	$	1,178,404

		December 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	49,146	$	70,952	$	65,232	$	36,751	$	15,185	$	118,087	$	1,066	$	356,419
	Non-performing		—		121		—		65		57		1,504		—	$	1,747
	Subtotal	$	49,146	$	71,073	$	65,232	$	36,816	$	15,242	$	119,591	$	1,066	$	358,166
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	167	$	-	$	167
Home Equity	Performing	$	61	$	68	$	—	$	7	$	378	$	866	$	64,102	$	65,482
	Non-performing		—		22		—		17		—		60		—	$	99
	Subtotal	$	61	$	90	$	—	$	24	$	378	$	926	$	64,102	$	65,581
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	15,050	$	15,431	$	8,248	$	5,557	$	4,280	$	8,094	$	1,698	$	58,358
	Non-performing		—		53		45		104		—		103		—	$	305
	Subtotal	$	15,050	$	15,484	$	8,293	$	5,661	$	4,280	$	8,197	$	1,698	$	58,663
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	24	$	24	$	-	$	48
Other Residential	Performing	$	6,432	$	9,477	$	3,100	$	421	$	641	$	1,511	$	415	$	21,997
	Non-performing		—		—		46		—		390		38		—	$	474
	Subtotal	$	6,432	$	9,477	$	3,146	$	421	$	1,031	$	1,549	$	415	$	22,471
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	1
Consumer
Motor Vehicle	Performing	$	264,933	$	215,125	$	70,926	$	46,939	$	12,038	$	2,177	$	—	$	612,138
	Non-performing		232		973		520		532		134		30		—	$	2,421
	Subtotal	$	265,165	$	216,098	$	71,446	$	47,471	$	12,172	$	2,207	$	—	$	614,559
	Current period gross charge-offs	$	841	$	7,722	$	3,101	$	1,448	$	499	$	174	$	-	$	13,785
Other Consumer	Performing	$	12,561	$	6,895	$	3,778	$	2,189	$	659	$	692	$	5,203	$	31,977
	Non-performing		—		20		145		39		17		—		1	$	222
	Subtotal	$	12,561	$	6,915	$	3,923	$	2,228	$	676	$	692	$	5,204	$	32,199
	Current period gross charge-offs	$	61	$	213	$	61	$	37	$	3	$	5	$	149	$	529
Total	Performing	$	348,183	$	317,948	$	151,284	$	91,864	$	33,181	$	131,427	$	72,484	$	1,146,371
	Non-performing		232		1,189		756		757		598		1,735		1	$	5,268
Total other loans		$	348,415	$	319,137	$	152,040	$	92,621	$	33,779	$	133,162	$	72,485	$	1,151,639

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Securities (Tables)

6 Months Ended

Jun. 30, 2024

Securities

Schedule of amortized cost and fair value of investments classified as available-for-sale

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

	June 30, 2024
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	98,999	$	7	$	(12,076)	$	86,930
Mortgage Backed Securities - residential		630,097		85		(86,427)		543,755
Mortgage Backed Securities - commercial		7,843		—		(399)		7,444
Collateralized mortgage obligations		199,245		9		(28,946)		170,308
State and municipal obligations		392,250		347		(32,760)		359,837
Municipal taxable		39,616		1		(5,499)		34,118
U.S. Treasury		470		—		(3)		467
Collateralized debt obligations		—		2,892		—		2,892
TOTAL	$	1,368,520	$	3,341	$	(166,110)	$	1,205,751

	December 31, 2023
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	102,978	$	4	$	(11,542)	$	91,440
Mortgage Backed Securities-residential		653,507		53		(83,675)		569,885
Mortgage Backed Securities-commercial		7,919		—		(436)		7,483
Collateralized mortgage obligations		209,398		6		(28,575)		180,829
State and municipal obligations		397,413		1,407		(28,009)		370,811
Municipal taxable		39,872		12		(5,599)		34,285
U.S. Treasury		1,411		—		(9)		1,402
Collateralized debt obligations		—		3,002		—		3,002
TOTAL	$	1,412,498	$	4,484	$	(157,845)	$	1,259,137

Schedule of contractual maturities of debt securities

Contractual maturities of debt securities at June 30, 2024 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	8,545	$	8,472
Due after one but within five years		44,994		43,141
Due after five but within ten years		108,667		104,810
Due after ten years		369,129		327,821
		531,335		484,244
Mortgage-backed securities and collateralized mortgage obligations		837,185		721,507
TOTAL	$	1,368,520	$	1,205,751

Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position

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 June 30, 2024 and December 31, 2023.

	June 30, 2024
	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	$	—	$	—	$	86,212	$	(12,076)	$	86,212	$	(12,076)
Mortgage Backed Securities - Residential		8,455		(69)		526,511		(86,358)		534,966		(86,427)
Mortgage Backed Securities - Commercial		—		—		7,444		(399)		7,444		(399)
Collateralized mortgage obligations		—		—		167,423		(28,946)		167,423		(28,946)
State and municipal obligations		69,381		(531)		246,421		(32,229)		315,802		(32,760)
Municipal taxable		1,308		(7)		31,809		(5,492)		33,117		(5,499)
U.S. Treasury		468		(3)		—		—		468		(3)
Total temporarily impaired securities	$	79,612	$	(610)	$	1,065,820	$	(165,500)	$	1,145,432	$	(166,110)

	December 31, 2023
	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	$	3,757	$	(73)	$	87,291	$	(11,469)	$	91,048	$	(11,542)
Mortgage Backed Securities - Residential		3,810		(41)		556,414		(83,634)		560,224		(83,675)
Mortgage Backed Securities - Commercial		—		—		7,483		(436)		7,483		(436)
Collateralized mortgage obligations		12,981		(303)		164,871		(28,272)		177,852		(28,575)
State and municipal obligations		45,154		(319)		212,022		(27,690)		257,176		(28,009)
Municipal taxable		—		—		31,958		(5,599)		31,958		(5,599)
U.S. Treasury		1,402		(9)		—		—		1,402		(9)
Total temporarily impaired securities	$	67,104	$	(745)	$	1,060,039	$	(157,100)	$	1,127,143	$	(157,845)

Schedule of credit losses recognized in earnings

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollar amounts in thousands)	2024		2023		2024		2023
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

XML

Fair Value (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value

Schedule of assets and liabilities measured at fair value

	June 30, 2024
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	86,930	$	—	$	86,930
Mortgage Backed Securities-residential		—		543,755		—		543,755
Mortgage Backed Securities-commercial		—		7,444		—		7,444
Collateralized mortgage obligations		—		170,308		—		170,308
State and municipal		—		359,032		805		359,837
Municipal taxable		—		34,118		—		34,118
U.S. Treasury		—		467		—		467
Collateralized debt obligations		—		—		2,892		2,892
TOTAL	$	—	$	1,202,054	$	3,697	$	1,205,751
Derivative Assets				2,994
Derivative Liabilities				(2,994)

	December 31, 2023
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	91,440	$	—	$	91,440
Mortgage Backed Securities-residential		—		569,885		—		569,885
Mortgage Backed Securities-commercial		—		7,483		—		7,483
Collateralized mortgage obligations		—		180,829		—		180,829
State and municipal		—		369,631		1,180		370,811
Municipal taxable		—		34,285		—		34,285
U.S. Treasury		—		1,402		—		1,402
Collateralized debt obligations		—		—		3,002		3,002
TOTAL	$	—	$	1,254,955	$	4,182	$	1,259,137
Derivative Assets				2,878
Derivative Liabilities				(2,878)

Schedule of fair value measurements using significant unobservable inputs

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	June 30, 2024
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, April 1	$	805	$	2,888	$	3,693
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		4		4
Transfers		—		—		—
Settlements		—		—		—
Ending balance, June 30	$	805	$	2,892	$	3,697

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Six Months Ended
	June 30, 2024
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,180	$	3,002	$	4,182
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		(110)		(110)
Transfers		—		—		—
Settlements		(375)		—		(375)
Ending balance, June 30	$	805	$	2,892	$	3,697

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,545	$	2,986	$	4,531
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		16		16
Purchases		—		—		—
Settlements		(365)		—		(365)
Ending balance, December 31	$	1,180	$	3,002	$	4,182

Schedule of quantitative information about recurring and non-recurring Level 3

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at June 30, 2024.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	805	Discounted cash flow	Discount rate	4.24%-4.44	%
Collateralized debt obligations	$	2,892	Discounted cash flow	Discount rate	7.27	%
Collateral dependent loans	$	5,103	Discounted cash flow	Discount rate for age of appraisal and market conditions	5.00%-100.00	%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2023.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,180	Discounted cash flow	Discount rate	4.04%-4.44	%
Collateralized debt obligations	$	3,002	Discounted cash flow	Discount rate	7.36	%
Collateral dependent loans		11,306	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-100.00	%

Schedule of carrying amount and estimated fair value of financial instruments

	June 30, 2024
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	75,073	$	24,820	$	50,253	$	—	$	75,073
Federal funds sold		—		—		—		—		—
Securities available-for-sale		1,205,751		—		1,202,054		3,697		1,205,751
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,165,675		—		—		3,030,377		3,030,377
Accrued interest receivable		23,733		—		6,558		17,175		23,733
Deposits		(4,132,327)		—		(4,130,751)		—		(4,130,751)
Short-term borrowings		(38,211)		—		(38,211)		—		(38,211)
Other borrowings		(108,575)		—		(108,507)		—		(108,507)
Accrued interest payable		(3,213)		—		(3,213)		—		(3,213)

	December 31, 2023
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	76,759	$	25,467	$	51,292	$	—	$	76,759
Federal funds sold		282		—		282		—		282
Securities available-for-sale		1,259,137		—		1,254,955		4,182		1,259,137
Restricted stock		15,364		n/a		n/a		n/a		n/a
Loans, net		3,128,054		—		—		3,025,621		3,025,621
Accrued interest receivable		24,877		—		6,755		18,122		24,877
Deposits		(4,090,068)		—		(4,094,552)		—		(4,094,552)
Short-term borrowings		(67,221)		—		(67,221)		—		(67,221)
Other borrowings		(108,577)		—		(108,496)		—		(108,496)
Accrued interest payable		(2,588)		—		(2,588)		—		(2,588)

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Borrowings (Tables)

6 Months Ended

Jun. 30, 2024

Borrowings

Schedule of short-term borrowings

(Dollar amounts in thousands)	June 30, 2024		December 31, 2023
Federal Funds Purchased	$	3,125	$	27,300
Repurchase Agreements		35,086		39,921
	$	38,211	$	67,221

Schedule of collateral pledged to repurchase agreements by remaining maturity

	June 30, 2024
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	29,711	$	300	$	—	$	5,075	$	35,086

	December 31, 2023
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to 30		30 - 90		than 90
(Dollar amounts in thousands)	continuous		days		days		days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	32,319	$	300	$	3,637	$	3,665	$	39,921

Schedule of other borrowings

(Dollar amounts in thousands)	June 30, 2024		December 31, 2023
FHLB advances	$	83,575	$	108,577
Notes payable		25,000		—
TOTAL	$	108,575	$	108,577

Schedule of aggregate minimum annual retirements

2025	$	78,605
2026		4,970
2027		25,000
2028		—
2029		—
Thereafter		—
	$	108,575

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Components of Net Periodic Benefit Cost (Tables)

6 Months Ended

Jun. 30, 2024

Components of Net Periodic Benefit Cost

Schedule of Net Periodic Benefit Costs

	Three Months Ended June 30,								Six Months Ended June 30,
					Post-Retirement								Post-Retirement
	Pension Benefits				Health Benefits				Pension Benefits				Health Benefits
(Dollar amounts in thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Service cost	$	141	$	157	$	4	$	5	$	282	$	314	$	8	$	10
Interest cost		947		956		35		39		1,894		1,912		69		77
Expected return on plan assets		(1,052)		(969)		—		—		(2,103)		(1,939)		—		—
Net amortization of prior service cost		—		—		—		—		—		—		—		—
Net amortization of net (gain) loss		108		188		(20)		(13)		217		376		(40)		(26)
Net Periodic Benefit Cost	$	144	$	332	$	19	$	31	$	290	$	663	$	37	$	61

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contracts with Customers

Schedule of non-interest income

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollar amounts in thousands)	2024		2023		2024		2023
Non-interest income
Service charges on deposits and debit card fee income	$	6,730	$	7,054	$	13,437	$	13,872
Asset management fees		1,318		1,185		2,652		2,502
Interchange income		135		—		314		47
Net gains on sales of loans (a)		299		311		475		490
Loan servicing fees (a)		414		264		683		549
Other service charges and fees (a)		286		196		509		400
Other (b)		723		1,443		1,266		1,968
Total non-interest income	$	9,905	$	10,453	$	19,336	$	19,828

(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 June 30, 2024 and June 30, 2023, totaling $79 thousand and $(37) thousand, respectively, and for the six months ended for the same periods, totaling $87 thousand and $(31) thousand, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2024

Accumulated Other Comprehensive Income

Schedule of Accumulated Other Comprehensive Income

	Unrealized
	gains and
	(Losses) on available-		2024
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, April 1,	$	(129,096)	$	(9,014)	$	(138,110)
Change in other comprehensive income (loss) before reclassification		3,535		—		3,535
Amounts reclassified from accumulated other comprehensive income		—		74		74
Net current period other comprehensive income (loss)		3,535		74		3,609
Ending balance, June 30,	$	(125,561)	$	(8,940)	$	(134,501)

	Unrealized
	gains and
	(Losses) on available-		2024
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(118,000)	$	(9,087)	$	(127,087)
Change in other comprehensive income (loss) before reclassification		(7,561)		—		(7,561)
Amounts reclassified from accumulated other comprehensive income		—		147		147
Net current period other comprehensive income (loss)		(7,561)		147		(7,414)
Ending balance, June 30,	$	(125,561)	$	(8,940)	$	(134,501)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, April 1,	$	(114,658)	$	(10,931)	$	(125,589)
Change in other comprehensive income (loss) before reclassification		(15,808)		—		(15,808)
Amounts reclassified from accumulated other comprehensive income		—		147		147
Net current period other comprehensive income (loss)		(15,808)		147		(15,661)
Ending balance, June 30,	$	(130,466)	$	(10,784)	$	(141,250)

	Unrealized
	gains and
	(Losses) on available-		2023
	for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans		Total
Beginning balance, January 1,	$	(128,896)	$	(11,078)	$	(139,974)
Change in other comprehensive income (loss) before reclassification		(1,570)		—		(1,570)
Amounts reclassified from accumulated other comprehensive income		—		294		294
Net current period other comprehensive income (loss)		(1,570)		294		(1,276)
Ending balance, June 30,	$	(130,466)	$	(10,784)	$	(141,250)

Schedule Of Accumulated Other Comprehensive Income Loss Other Than Temporary Impairment

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	4/1/2024		Change		6/30/2024
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,262)	$	3,532	$	(127,730)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,166		3		2,169
Total unrealized loss on securities available-for-sale	$	(129,096)	$	3,535	$	(125,561)
Unrealized gain (loss) on retirement plans		(9,014)		74		(8,940)
TOTAL	$	(138,110)	$	3,609	$	(134,501)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2024		Change		6/30/2024
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(120,252)	$	(7,478)	$	(127,730)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,252		(83)		2,169
Total unrealized gain (loss) on securities available-for-sale	$	(118,000)	$	(7,561)	$	(125,561)
Unrealized gain (loss) on retirement plans		(9,087)		147		(8,940)
TOTAL	$	(127,087)	$	(7,414)	$	(134,501)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	4/1/2023		Change		6/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(116,844)	$	(15,827)	$	(132,671)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,186		19		2,205
Total unrealized gain (loss) on securities available-for-sale	$	(114,658)	$	(15,808)	$	(130,466)
Unrealized loss on retirement plans		(10,931)		147		(10,784)
TOTAL	$	(125,589)	$	(15,661)	$	(141,250)

	Balance at		Current Period		Balance at
(Dollar amounts in thousands)	1/1/2023		Change		6/30/2023
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment	$	(131,135)	$	(1,536)	$	(132,671)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment		2,239		(34)		2,205
Total unrealized income (loss) on securities available-for-sale	$	(128,896)	$	(1,570)	$	(130,466)
Unrealized gain (loss) on retirement plans		(11,078)		294		(10,784)
TOTAL	$	(139,974)	$	(1,276)	$	(141,250)

Accumulated Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent

	Three Months Ended June 30, 2024
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(195)	(a)	Salary and benefits
retirement plan items		48		Income tax expense
	$	(147)		Net of tax
Total reclassifications for the period	$	(147)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Six Months Ended June 30, 2024
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(98)	(a)	Salary and benefits
retirement plan items		24		Income tax expense
	$	(74)		Net of tax
Total reclassifications for the period	$	(74)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Three Months Ended June 30, 2023
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(196)	(a)	Salary and benefits
retirement plan items		49		Income tax expense
	$	(147)		Net of tax
Total reclassifications for the period	$	(147)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Six Months Ended June 30, 2023
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	$	—		Net securities gains (losses)
on available-for-sale		—		Income tax expense
securities	$	—		Net of tax
Amortization of	$	(392)	(a)	Salary and benefits
retirement plan items		98		Income tax expense
	$	(294)		Net of tax
Total reclassifications for the period	$	(294)		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

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Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases

Schedule of lease cost

	Six Months Ended
(Dollar amounts in thousands)	June 30, 2024
Operating lease cost	$	487
Short-term lease cost		55
Variable lease cost		18
Total lease cost	$	560
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities		487
Right-of-use assets obtained in exchange for new operating lease liabilities		429

Schedule of Future minimum payments for operating leases

(Dollar amounts in thousands)	June 30, 2024
Twelve Months Ended June 30,
2025	$	986
2026		927
2027		863
2028		847
2029		548
Thereafter		2,007
Total Future Minimum Lease Payments		6,178
Amounts Representing Interest		(710)
Present Value of Net Future Minimum Lease Payments	$	5,468

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Significant Accounting Policies (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($) segment shares	Jun. 30, 2023 USD ($) shares
Significant Accounting Policies
Number of reportable segments | segment	1
Vesting period	3 years
Number of shares awarded | shares	27,803	22,228
Grant date value | $	$ 1.0	$ 1.0
Year one
Significant Accounting Policies
Vesting percentage	33.00%
Year two
Significant Accounting Policies
Vesting percentage	33.00%
Year three
Significant Accounting Policies
Vesting percentage	34.00%

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New accounting standards (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jan. 01, 2024	Dec. 31, 2023
New accounting standards
Other assets	$ 108,670		$ 72,587
Other liabilities	81,285		57,304
Retained earnings	$ 673,728		$ 663,726
Accounting Standards (ASU) No. 2023-02 | Adjustment
New accounting standards
Other assets		$ 19,000
Other liabilities		21,000
Retained earnings		$ (1,700)

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Allowance for Credit Losses - Activity in allowance for credit losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 40,045	$ 39,620	$ 39,767	$ 39,779	$ 39,779
Provision for credit losses	2,966	1,800	4,766	3,600
Loans charged -off	(6,091)	(3,543)	(9,283)	(7,919)
Recoveries	1,414	2,030	3,084	4,447
Ending Balance	38,334	39,907	38,334	39,907	39,767
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	13,579	12,790	13,264	12,949	12,949
Provision for credit losses	1,811	(377)	2,082	(431)
Loans charged -off	(3,548)	(209)	(3,779)	(515)
Recoveries	173	246	448	447
Ending Balance	12,015	12,450	12,015	12,450	13,264
Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	14,233	15,059	14,327	14,568	14,568
Provision for credit losses	93	166	(80)	666
Loans charged -off	(42)	(63)	(56)	(142)
Recoveries	40	106	133	176
Ending Balance	14,324	15,268	14,324	15,268	14,327
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	11,919	11,513	11,797	12,104	12,104
Provision for credit losses	1,367	1,733	3,134	2,987
Loans charged -off	(2,501)	(3,271)	(5,448)	(7,262)
Recoveries	1,201	1,678	2,503	3,824
Ending Balance	11,986	11,653	11,986	11,653	11,797
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	314	258	379	158	158
Provision for credit losses	(305)	278	(370)	378
Ending Balance	$ 9	$ 536	$ 9	$ 536	$ 379

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Allowance for Credit Losses - Recorded Investments in Nonperforming Loans (Details) - Nonperforming Loans - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	$ 1,380	$ 988
Non-accrual	14,563	23,596
Nonaccrual With No Allowance For Credit Loss	4,337	5,575
Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	303	5
Non-accrual	6,072	13,971
Nonaccrual With No Allowance For Credit Loss	34	860
Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	1,218	1,221
Nonaccrual With No Allowance For Credit Loss	1,201	1,201
Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	112
Non-accrual	907	995
Nonaccrual With No Allowance For Credit Loss	476	1,011
Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	934	1,147
Nonaccrual With No Allowance For Credit Loss	893	1,103
All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	996	1,046
Nonaccrual With No Allowance For Credit Loss	980	1,027
First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	567	620
Non-accrual	963	960
Nonaccrual With No Allowance For Credit Loss	32
Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	136	32
Non-accrual	111	68
Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	262	239
Non-accrual	74	67
Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing		47
Non-accrual	426	543
Nonaccrual With No Allowance For Credit Loss	373	373
All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	407	427
Nonaccrual With No Allowance For Credit Loss	348
Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing		45
Non-accrual	2,218	2,933
All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Non-accrual	$ 237	$ 218

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Allowance for Credit Losses- Amortized cost basis of collateral dependent loans (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	$ 2,018,416	$ 2,008,433
Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	7,710	8,836
Collateral Other than Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	6,010	13,110
Commercial | Commercial & Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	533,605	649,524
Commercial | Commercial & Industrial | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	598	1,454
Commercial | Commercial & Industrial | Collateral Other than Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	5,117	12,056
Commercial | Farmland
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	128,423	130,606
Commercial | Farmland | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	1,620	1,633
Commercial | Non Farm, Non Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	537,727	437,661
Commercial | Non Farm, Non Residential | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	3,759	3,919
Commercial | Agriculture
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	126,771	138,022
Commercial | Agriculture | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable		49
Commercial | Agriculture | Collateral Other than Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	893	1,054
Commercial | All Other Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	456,120	461,713
Commercial | All Other Commercial | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	980	1,027
Residential | First Liens
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	363,815	358,166
Residential | First Liens | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	32	32
Residential | Home Equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	67,512	65,581
Residential | Junior Liens
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	59,592	58,663
Residential | Multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	235,770	190,907
Residential | Multifamily | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	373	373
Residential | All Other Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	21,354	22,471
Residential | All Other Residential | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	348	349
Consumer | Motor Vehicle
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	635,242	614,559
Consumer | All Other Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable	$ 30,889	$ 32,199

XML

Allowance for Credit Losses - Aging of the Recorded Investment in Loans by Past Due Category and Class of Loan (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	$ 2,018,416	$ 2,008,433
Financing Receivable Recorded Investment	3,214,137	3,178,373
Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	533,605	649,524
Financing Receivable Recorded Investment	535,887	652,093
Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	128,423	130,606
Financing Receivable Recorded Investment	130,530	133,406
Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	537,727	437,661
Financing Receivable Recorded Investment	539,365	439,009
Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	126,771	138,022
Financing Receivable Recorded Investment	129,242	141,041
All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	456,120	461,713
Financing Receivable Recorded Investment	459,130	464,776
First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	363,815	358,166
Financing Receivable Recorded Investment	365,071	359,292
Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	67,512	65,581
Financing Receivable Recorded Investment	67,747	65,810
Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	59,592	58,663
Financing Receivable Recorded Investment	59,768	58,833
Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	235,770	190,907
Financing Receivable Recorded Investment	236,684	191,734
All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	21,354	22,471
Financing Receivable Recorded Investment	21,447	22,562
Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	635,242	614,559
Financing Receivable Recorded Investment	638,209	617,448
All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Loans receivable	30,889	32,199
Financing Receivable Recorded Investment	31,057	32,369
30-59 Days Past Due
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	12,633	17,948
30-59 Days Past Due | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	616	668
30-59 Days Past Due | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	362	58
30-59 Days Past Due | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	262
30-59 Days Past Due | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	14
30-59 Days Past Due | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	678	2,841
30-59 Days Past Due | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	314	360
30-59 Days Past Due | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	384	462
30-59 Days Past Due | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment		117
30-59 Days Past Due | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment		554
30-59 Days Past Due | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	9,561	12,491
30-59 Days Past Due | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	442	397
60-89 Days Past Due
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	4,739	3,612
60-89 Days Past Due | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,273	488
60-89 Days Past Due | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	304
60-89 Days Past Due | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	921	816
60-89 Days Past Due | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	389	188
60-89 Days Past Due | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	60	124
60-89 Days Past Due | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	166	140
60-89 Days Past Due | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	211
60-89 Days Past Due | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,312	1,754
60-89 Days Past Due | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	103	102
90 Days and Greater Past Due
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	6,876	5,929
90 Days and Greater Past Due | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,844	1,136
90 Days and Greater Past Due | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,202	1,201
90 Days and Greater Past Due | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	114
90 Days and Greater Past Due | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	930	1,141
90 Days and Greater Past Due | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	876	924
90 Days and Greater Past Due | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	220	71
90 Days and Greater Past Due | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	283	262
90 Days and Greater Past Due | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	373	373
90 Days and Greater Past Due | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	377	47
90 Days and Greater Past Due | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	590	761
90 Days and Greater Past Due | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	67	13
Total Past Due
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	24,248	27,489
Total Past Due | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	3,733	2,292
Total Past Due | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,564	1,259
Total Past Due | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	418
Total Past Due | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	1,192	1,141
Total Past Due | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	14
Total Past Due | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	2,475	4,581
Total Past Due | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	923	619
Total Past Due | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	727	848
Total Past Due | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	539	630
Total Past Due | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	588	601
Total Past Due | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	11,463	15,006
Total Past Due | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	612	512
Current
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	3,189,889	3,150,884
Current | Commercial & Industrial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	532,154	649,801
Current | Farmland | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	128,966	132,147
Current | Non Farm, Non Residential | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	538,947	439,009
Current | Agriculture | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	128,050	139,900
Current | All Other Commercial | Commercial
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	459,116	464,776
Current | First Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	362,596	354,711
Current | Home Equity | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	66,824	65,191
Current | Junior Liens | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	59,041	57,985
Current | Multifamily | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	236,145	191,104
Current | All Other Residential | Residential
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	20,859	21,961
Current | Motor Vehicle | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	626,746	602,442
Current | All Other Consumer | Consumer
Aging of recorded investment in loans by past due category and class of loans
Financing Receivable Recorded Investment	$ 30,445	$ 31,857

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Allowance for Credit Losses - Loans Modified (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Allowance for Credit Losses
Total Class of Financing Receivable	0.02%
Principal Forgiveness
Allowance for Credit Losses
$ Amount	$ 27
Term Extension
Allowance for Credit Losses
$ Amount	321
Interest Rate Reduction
Allowance for Credit Losses
$ Amount	27
Combination Term Extension and Principal Forgiveness
Allowance for Credit Losses
$ Amount	110
Combination Term Extension Interest Rate Reduction
Allowance for Credit Losses
$ Amount	$ 132
Residential | First Liens
Allowance for Credit Losses
Total Class of Financing Receivable	0.01%
Residential | First Liens | Combination Term Extension Interest Rate Reduction
Allowance for Credit Losses
$ Amount	$ 25
Residential | Junior Liens
Allowance for Credit Losses
Total Class of Financing Receivable	0.05%
Residential | Junior Liens | Term Extension
Allowance for Credit Losses
$ Amount	$ 28
Consumer | Motor Vehicle
Allowance for Credit Losses
Total Class of Financing Receivable	0.09%
Consumer | Motor Vehicle | Principal Forgiveness
Allowance for Credit Losses
$ Amount	$ 27
Consumer | Motor Vehicle | Term Extension
Allowance for Credit Losses
$ Amount	293
Consumer | Motor Vehicle | Interest Rate Reduction
Allowance for Credit Losses
$ Amount	27
Consumer | Motor Vehicle | Combination Term Extension and Principal Forgiveness
Allowance for Credit Losses
$ Amount	110
Consumer | Motor Vehicle | Combination Term Extension Interest Rate Reduction
Allowance for Credit Losses
$ Amount	$ 107

XML

Allowance for Credit Losses - Modified loans performance (Details) - Consumer $ in Thousands	Jun. 30, 2023 USD ($)
30-59 Days Past Due
Allowance for Credit Losses
Amount	$ 2
60-89 Days Past Due
Allowance for Credit Losses
Amount	19
Greater Than 89 Days Past Due
Allowance for Credit Losses
Amount	7
Total Past Due
Allowance for Credit Losses
Amount	28
Motor Vehicle | 30-59 Days Past Due
Allowance for Credit Losses
Amount	2
Motor Vehicle | 60-89 Days Past Due
Allowance for Credit Losses
Amount	19
Motor Vehicle | Greater Than 89 Days Past Due
Allowance for Credit Losses
Amount	7
Motor Vehicle | Total Past Due
Allowance for Credit Losses
Amount	$ 28

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Allowance for Credit Losses - Effect of loan and leases modifications (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Effect of loan and lease modifications
Principal Forgiveness	$ 56
Weighted-Average Interest Rate Reduction	2.87%
Weighted-Average Term Extension	22 months
Residential | First Liens
Effect of loan and lease modifications
Weighted-Average Interest Rate Reduction	2.75%
Weighted-Average Term Extension	24 months
Residential | Junior Liens
Effect of loan and lease modifications
Weighted-Average Term Extension	36 months
Consumer | Motor Vehicle
Effect of loan and lease modifications
Principal Forgiveness	$ 56
Weighted-Average Interest Rate Reduction	2.89%
Weighted-Average Term Extension	21 months

XML

Allowance for Credit Losses - Modified loans with payment default (Details) - Consumer - Term Extension $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Allowance for Credit Losses
Amount	$ 28
Motor Vehicle
Allowance for Credit Losses
Amount	$ 28

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Allowance for Credit Losses - Recorded Investment of Commercial Loan Portfolio by Risk Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Analysis of risk category of loans by class of loans
Minimum outstanding balance of non-homogeneous loans to be individually evaluated as to credit risk	$ 100		$ 100
Current year	158,376		158,376		$ 255,765
Prior year	244,258		244,258		458,326
Two years before current year	454,903		454,903		361,138
Three years before current year	338,585		338,585		210,908
Four years before current year	191,404		191,404		98,537
Prior	476,704		476,704		446,015
Revolving Loans	154,186		154,186		177,744
Total loans	2,018,416		2,018,416		2,008,433
Current period gross charge offs, Total	6,091	$ 3,543	9,283	$ 7,919
Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	57,093		57,093		87,975
Prior year	49,045		49,045		137,829
Two years before current year	117,878		117,878		125,525
Three years before current year	87,852		87,852		52,299
Four years before current year	40,410		40,410		46,513
Prior	106,627		106,627		107,185
Revolving Loans	74,700		74,700		92,198
Total loans	533,605		533,605		649,524
Current period gross charge offs, 2024					8
Current period gross charge offs, 2023					72
Current period gross charge offs, 2022			105		40
Current period gross charge offs, 2021			3,264		78
Current period gross charge offs, 2020			10		24
Current period gross charge offs, Prior			48		49
Current period gross charge offs, Total			3,427		271
Farmland | Commercial
Analysis of risk category of loans by class of loans
Current year	7,978		7,978		21,232
Prior year	20,439		20,439		16,025
Two years before current year	15,613		15,613		20,798
Three years before current year	19,574		19,574		8,351
Four years before current year	7,787		7,787		9,462
Prior	56,808		56,808		54,451
Revolving Loans	224		224		287
Total loans	128,423		128,423		130,606
Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Current year	50,705		50,705		73,842
Prior year	79,718		79,718		124,051
Two years before current year	136,842		136,842		70,472
Three years before current year	99,928		99,928		24,643
Four years before current year	22,700		22,700		23,874
Prior	143,079		143,079		113,173
Revolving Loans	4,755		4,755		7,606
Total loans	537,727		537,727		437,661
Agriculture | Commercial
Analysis of risk category of loans by class of loans
Current year	4,822		4,822		10,764
Prior year	8,730		8,730		11,491
Two years before current year	10,232		10,232		6,645
Three years before current year	5,695		5,695		6,161
Four years before current year	5,425		5,425		7,517
Prior	26,978		26,978		27,350
Revolving Loans	64,889		64,889		68,094
Total loans	126,771		126,771		138,022
All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Current year	15,398		15,398		27,401
Prior year	32,721		32,721		106,085
Two years before current year	104,013		104,013		104,323
Three years before current year	92,950		92,950		96,507
Four years before current year	92,515		92,515		4,774
Prior	109,363		109,363		113,446
Revolving Loans	9,160		9,160		9,177
Total loans	456,120		456,120		461,713
Current period gross charge offs, 2024			252		675
Current period gross charge offs, 2023			100
Current period gross charge offs, 2020					20
Current period gross charge offs, Total			352		695
Multifamily | Residential
Analysis of risk category of loans by class of loans
Current year	22,380		22,380		34,551
Prior year	53,605		53,605		62,845
Two years before current year	70,325		70,325		33,375
Three years before current year	32,586		32,586		22,947
Four years before current year	22,567		22,567		6,397
Prior	33,849		33,849		30,410
Revolving Loans	458		458		382
Total loans	235,770		235,770		190,907
Pass
Analysis of risk category of loans by class of loans
Current year	153,225		153,225		248,561
Prior year	234,190		234,190		450,056
Two years before current year	449,218		449,218		346,276
Three years before current year	322,060		322,060		202,457
Four years before current year	186,584		186,584		94,211
Prior	448,057		448,057		421,033
Revolving Loans	148,953		148,953		163,479
Total loans	1,942,287		1,942,287		1,926,073
Pass | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	52,615		52,615		80,873
Prior year	39,032		39,032		131,522
Two years before current year	114,470		114,470		112,811
Three years before current year	73,432		73,432		47,445
Four years before current year	36,682		36,682		44,257
Prior	98,079		98,079		100,872
Revolving Loans	72,107		72,107		81,551
Total loans	486,417		486,417		599,331
Pass | Farmland | Commercial
Analysis of risk category of loans by class of loans
Current year	7,978		7,978		21,232
Prior year	20,439		20,439		16,025
Two years before current year	15,613		15,613		20,794
Three years before current year	19,574		19,574		8,310
Four years before current year	7,747		7,747		8,790
Prior	54,037		54,037		52,357
Revolving Loans	224		224		287
Total loans	125,612		125,612		127,795
Pass | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Current year	50,043		50,043		73,740
Prior year	79,663		79,663		123,319
Two years before current year	135,958		135,958		69,477
Three years before current year	98,953		98,953		23,965
Four years before current year	22,032		22,032		22,550
Prior	135,940		135,940		106,752
Revolving Loans	4,755		4,755		7,606
Total loans	527,344		527,344		427,409
Pass | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Current year	4,811		4,811		10,764
Prior year	8,730		8,730		11,299
Two years before current year	10,061		10,061		6,614
Three years before current year	5,669		5,669		6,118
Four years before current year	5,391		5,391		7,443
Prior	25,472		25,472		25,678
Revolving Loans	62,249		62,249		64,476
Total loans	122,383		122,383		132,392
Pass | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Current year	15,398		15,398		27,401
Prior year	32,721		32,721		105,046
Two years before current year	103,023		103,023		104,307
Three years before current year	92,936		92,936		94,029
Four years before current year	92,515		92,515		4,774
Prior	108,130		108,130		112,159
Revolving Loans	9,160		9,160		9,177
Total loans	453,883		453,883		456,893
Pass | Multifamily | Residential
Analysis of risk category of loans by class of loans
Current year	22,380		22,380		34,551
Prior year	53,605		53,605		62,845
Two years before current year	70,093		70,093		32,273
Three years before current year	31,496		31,496		22,590
Four years before current year	22,217		22,217		6,397
Prior	26,399		26,399		23,215
Revolving Loans	458		458		382
Total loans	226,648		226,648		182,253
Special Mention
Analysis of risk category of loans by class of loans
Current year					6
Prior year	8,175		8,175		1,039
Two years before current year	1,731		1,731		11,024
Three years before current year	10,724		10,724		6,285
Four years before current year	3,673		3,673		1,531
Prior	11,040		11,040		9,582
Revolving Loans	5,233		5,233		6,333
Total loans	40,576		40,576		35,800
Special Mention | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year					6
Prior year	8,175		8,175		221
Two years before current year	715		715		10,025
Three years before current year	9,749		9,749		3,442
Four years before current year	3,318		3,318		323
Prior	1,375		1,375		866
Revolving Loans	2,593		2,593		2,715
Total loans	25,925		25,925		17,598
Special Mention | Farmland | Commercial
Analysis of risk category of loans by class of loans
Two years before current year					4
Four years before current year					363
Prior	1,047		1,047		710
Total loans	1,047		1,047		1,077
Special Mention | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Prior year					732
Two years before current year	700		700		995
Three years before current year	975		975
Four years before current year					845
Prior	827		827
Total loans	2,502		2,502		2,572
Special Mention | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Prior year					86
Two years before current year	84		84
Three years before current year					8
Four years before current year	5		5
Prior	599		599		605
Revolving Loans	2,640		2,640		3,618
Total loans	3,328		3,328		4,317
Special Mention | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Three years before current year					2,478
Prior	795		795		830
Total loans	795		795		3,308
Special Mention | Multifamily | Residential
Analysis of risk category of loans by class of loans
Two years before current year	232		232
Three years before current year					357
Four years before current year	350		350
Prior	6,397		6,397		6,571
Total loans	6,979		6,979		6,928
Substandard
Analysis of risk category of loans by class of loans
Current year	4,277		4,277		3,722
Prior year	762		762		5,816
Two years before current year	2,917		2,917		1,858
Three years before current year	4,154		4,154		1,022
Four years before current year	172		172		2,627
Prior	16,282		16,282		14,520
Revolving Loans					7,932
Total loans	28,564		28,564		37,497
Substandard | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	3,615		3,615		3,620
Prior year	707		707		4,734
Two years before current year	1,700		1,700		1,842
Three years before current year	4,140		4,140		981
Four years before current year	132		132		1,789
Prior	7,048		7,048		5,354
Revolving Loans					7,932
Total loans	17,342		17,342		26,252
Substandard | Farmland | Commercial
Analysis of risk category of loans by class of loans
Three years before current year					41
Four years before current year	40		40		309
Prior	1,710		1,710		1,370
Total loans	1,750		1,750		1,720
Substandard | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Current year	662		662		102
Prior year	55		55
Two years before current year	184		184
Four years before current year					479
Prior	6,248		6,248		6,356
Total loans	7,149		7,149		6,937
Substandard | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Prior year					55
Two years before current year	53		53
Four years before current year					50
Prior	903		903		1,067
Total loans	956		956		1,172
Substandard | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Prior year					1,027
Two years before current year	980		980		16
Three years before current year	14		14
Total loans	994		994		1,043
Substandard | Multifamily | Residential
Analysis of risk category of loans by class of loans
Prior	373		373		373
Total loans	373		373		373
Not Rated
Analysis of risk category of loans by class of loans
Current year	874		874		3,476
Prior year	1,131		1,131		1,415
Two years before current year	1,037		1,037		1,980
Three years before current year	1,647		1,647		1,144
Four years before current year	975		975		168
Prior	1,325		1,325		880
Total loans	6,989		6,989		9,063
Not Rated | Commercial & Industrial | Commercial
Analysis of risk category of loans by class of loans
Current year	863		863		3,476
Prior year	1,131		1,131		1,352
Two years before current year	993		993		847
Three years before current year	531		531		431
Four years before current year	278		278		144
Prior	125		125		93
Total loans	3,921		3,921		6,343
Not Rated | Farmland | Commercial
Analysis of risk category of loans by class of loans
Prior	14		14		14
Total loans	14		14		14
Not Rated | Non Farm, Non Residential | Commercial
Analysis of risk category of loans by class of loans
Three years before current year					678
Four years before current year	668		668
Prior	64		64		65
Total loans	732		732		743
Not Rated | Agriculture | Commercial
Analysis of risk category of loans by class of loans
Current year	11		11
Prior year					51
Two years before current year	34		34		31
Three years before current year	26		26		35
Four years before current year	29		29		24
Prior	4		4
Total loans	104		104		141
Not Rated | All Other Commercial | Commercial
Analysis of risk category of loans by class of loans
Prior year					12
Two years before current year	10		10
Prior	438		438		457
Total loans	448		448		469
Not Rated | Multifamily | Residential
Analysis of risk category of loans by class of loans
Two years before current year					1,102
Three years before current year	1,090		1,090
Prior	680		680		251
Total loans	$ 1,770		$ 1,770		$ 1,353

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Allowance for Credit Losses - Credit risk profile of loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Nonperforming loans past due			90 days
Current year	$ 158,376		$ 158,376		$ 255,765
Prior year	244,258		244,258		458,326
Two years before current year	454,903		454,903		361,138
Three years before current year	338,585		338,585		210,908
Four years before current year	191,404		191,404		98,537
Prior	476,704		476,704		446,015
Revolving Loans	154,186		154,186		177,744
Total loans	2,018,416		2,018,416		2,008,433
Current period gross charge offs, Total	6,091	$ 3,543	9,283	$ 7,919
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	176,067		176,067		348,183
Prior year	305,584		305,584		317,948
Two years before current year	270,809		270,809		151,284
Three years before current year	127,292		127,292		91,864
Four years before current year	74,246		74,246		33,181
Prior	146,021		146,021		131,427
Revolving Loans	73,274		73,274		72,484
Total loans	1,173,293		1,173,293		1,146,371
Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	4		4		232
Prior year	574		574		1,189
Two years before current year	1,005		1,005		756
Three years before current year	859		859		757
Four years before current year	583		583		598
Prior	1,974		1,974		1,735
Revolving Loans	112		112		1
Total loans	5,111		5,111		5,268
Total other loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	176,071		176,071		348,415
Prior year	306,158		306,158		319,137
Two years before current year	271,814		271,814		152,040
Three years before current year	128,151		128,151		92,621
Four years before current year	74,829		74,829		33,779
Prior	147,995		147,995		133,162
Revolving Loans	73,386		73,386		72,485
Total loans	1,178,404		1,178,404		1,151,639
Residential | First Liens
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	24,841		24,841		49,146
Prior year	47,700		47,700		71,073
Two years before current year	68,600		68,600		65,232
Three years before current year	62,265		62,265		36,816
Four years before current year	34,456		34,456		15,242
Prior	125,282		125,282		119,591
Revolving Loans	671		671		1,066
Total loans	363,815		363,815		358,166
Current period gross charge offs, Prior			14		167
Current period gross charge offs, Total			14		167
Residential | First Liens | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	24,841		24,841		49,146
Prior year	47,700		47,700		70,952
Two years before current year	68,600		68,600		65,232
Three years before current year	61,857		61,857		36,751
Four years before current year	34,392		34,392		15,185
Prior	124,100		124,100		118,087
Revolving Loans	671		671		1,066
Total loans	362,161		362,161		356,419
Residential | First Liens | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Prior year					121
Three years before current year	408		408		65
Four years before current year	64		64		57
Prior	1,182		1,182		1,504
Total loans	1,654		1,654		1,747
Residential | Home Equity
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	174		174		61
Prior year	124		124		90
Two years before current year	129		129
Three years before current year	29		29		24
Four years before current year	106		106		378
Prior	1,416		1,416		926
Revolving Loans	65,534		65,534		64,102
Total loans	67,512		67,512		65,581
Current period gross charge offs, 2022			22
Current period gross charge offs, Revolving Loans			20
Current period gross charge offs, Total			42
Residential | Home Equity | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	174		174		61
Prior year	124		124		68
Two years before current year	54		54
Three years before current year	29		29		7
Four years before current year	90		90		378
Prior	1,333		1,333		866
Revolving Loans	65,461		65,461		64,102
Total loans	67,265		67,265		65,482
Residential | Home Equity | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Prior year					22
Two years before current year	75		75
Three years before current year					17
Four years before current year	16		16
Prior	83		83		60
Revolving Loans	73		73
Total loans	247		247		99
Residential | Junior Liens
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	6,875		6,875		15,050
Prior year	13,795		13,795		15,484
Two years before current year	13,889		13,889		8,293
Three years before current year	7,245		7,245		5,661
Four years before current year	5,589		5,589		4,280
Prior	10,698		10,698		8,197
Revolving Loans	1,501		1,501		1,698
Total loans	59,592		59,592		58,663
Current period gross charge offs, 2020					24
Current period gross charge offs, Prior					24
Current period gross charge offs, Total					48
Residential | Junior Liens | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	6,875		6,875		15,050
Prior year	13,693		13,693		15,431
Two years before current year	13,889		13,889		8,248
Three years before current year	7,245		7,245		5,557
Four years before current year	5,525		5,525		4,280
Prior	10,532		10,532		8,094
Revolving Loans	1,501		1,501		1,698
Total loans	59,260		59,260		58,358
Residential | Junior Liens | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Prior year	102		102		53
Two years before current year					45
Three years before current year					104
Four years before current year	64		64
Prior	166		166		103
Total loans	332		332		305
Residential | All Other Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	498		498		6,432
Prior year	7,385		7,385		9,477
Two years before current year	7,717		7,717		3,146
Three years before current year	2,703		2,703		421
Four years before current year	398		398		1,031
Prior	2,419		2,419		1,549
Revolving Loans	234		234		415
Total loans	21,354		21,354		22,471
Current period gross charge offs, Prior					1
Current period gross charge offs, Total					1
Residential | All Other Residential | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	498		498		6,432
Prior year	7,385		7,385		9,477
Two years before current year	7,717		7,717		3,100
Three years before current year	2,703		2,703		421
Four years before current year	398		398		641
Prior	1,994		1,994		1,511
Revolving Loans	234		234		415
Total loans	20,929		20,929		21,997
Residential | All Other Residential | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Two years before current year					46
Four years before current year					390
Prior	425		425		38
Total loans	425		425		474
Consumer | Motor Vehicle
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	137,535		137,535		265,165
Prior year	228,071		228,071		216,098
Two years before current year	176,621		176,621		71,446
Three years before current year	53,078		53,078		47,471
Four years before current year	32,574		32,574		12,172
Prior	7,351		7,351		2,207
Revolving Loans	12		12
Total loans	635,242		635,242		614,559
Current period gross charge offs, 2024			49		841
Current period gross charge offs, 2023			1,369		7,722
Current period gross charge offs, 2022			2,408		3,101
Current period gross charge offs, 2021			987		1,448
Current period gross charge offs, 2020			354		499
Current period gross charge offs, Prior			57		174
Current period gross charge offs, Total			5,224		13,785
Consumer | Motor Vehicle | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	137,531		137,531		264,933
Prior year	227,663		227,663		215,125
Two years before current year	175,727		175,727		70,926
Three years before current year	52,729		52,729		46,939
Four years before current year	32,161		32,161		12,038
Prior	7,238		7,238		2,177
Revolving Loans	12		12
Total loans	633,061		633,061		612,138
Consumer | Motor Vehicle | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	4		4		232
Prior year	408		408		973
Two years before current year	894		894		520
Three years before current year	349		349		532
Four years before current year	413		413		134
Prior	113		113		30
Total loans	2,181		2,181		2,421
Consumer | All Other Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	6,148		6,148		12,561
Prior year	9,083		9,083		6,915
Two years before current year	4,858		4,858		3,923
Three years before current year	2,831		2,831		2,228
Four years before current year	1,706		1,706		676
Prior	829		829		692
Revolving Loans	5,434		5,434		5,204
Total loans	30,889		30,889		32,199
Current period gross charge offs, 2024					61
Current period gross charge offs, 2023			62		213
Current period gross charge offs, 2022			57		61
Current period gross charge offs, 2021			5		37
Current period gross charge offs, 2020			7		3
Current period gross charge offs, Prior			9		5
Current period gross charge offs, Revolving Loans			84		149
Current period gross charge offs, Total			224		529
Consumer | All Other Consumer | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	6,148		6,148		12,561
Prior year	9,019		9,019		6,895
Two years before current year	4,822		4,822		3,778
Three years before current year	2,729		2,729		2,189
Four years before current year	1,680		1,680		659
Prior	824		824		692
Revolving Loans	5,395		5,395		5,203
Total loans	30,617		30,617		31,977
Consumer | All Other Consumer | Nonperforming Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Prior year	64		64		20
Two years before current year	36		36		145
Three years before current year	102		102		39
Four years before current year	26		26		17
Prior	5		5
Revolving Loans	39		39		1
Total loans	$ 272		$ 272		$ 222

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Securities - Amortized cost and fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	$ 1,368,520	$ 1,412,498
Unrealized Gains	3,341	4,484
Unrealized Losses	(166,110)	(157,845)
Fair Value	1,205,751	1,259,137
U.S. Government agencies
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	98,999	102,978
Unrealized Gains	7	4
Unrealized Losses	(12,076)	(11,542)
Fair Value	86,930	91,440
Mortgage Backed Securities - residential
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	630,097	653,507
Unrealized Gains	85	53
Unrealized Losses	(86,427)	(83,675)
Fair Value	543,755	569,885
Mortgage Backed Securities - commercial
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	7,843	7,919
Unrealized Losses	(399)	(436)
Fair Value	7,444	7,483
Collateralized mortgage obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	199,245	209,398
Unrealized Gains	9	6
Unrealized Losses	(28,946)	(28,575)
Fair Value	170,308	180,829
State and municipal obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	392,250	397,413
Unrealized Gains	347	1,407
Unrealized Losses	(32,760)	(28,009)
Fair Value	359,837	370,811
Municipal taxable
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	39,616	39,872
Unrealized Gains	1	12
Unrealized Losses	(5,499)	(5,599)
Fair Value	34,118	34,285
U.S. Treasury
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	470	1,411
Unrealized Losses	(3)	(9)
Fair Value	467	1,402
Collateralized debt obligations
Amortized cost and fair value of investments classified as available for sale
Unrealized Gains	2,892	3,002
Fair Value	$ 2,892	$ 3,002

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Securities - Contractual maturities of debt securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 8,545		$ 8,545
Due after one but within five years	44,994		44,994
Due after five but within ten years	108,667		108,667
Due after ten years	369,129		369,129
Total of securities having specified maturity period	531,335		531,335
Mortgage-backed securities and collateralized mortgage obligations	837,185		837,185
Amortized Cost	1,368,520		1,368,520		$ 1,412,498
Fair Value
Due in one year or less	8,472		8,472
Due after one but within five years	43,141		43,141
Due after five but within ten years	104,810		104,810
Due after ten years	327,821		327,821
Total of securities having specified maturities period	484,244		484,244
Mortgage-backed securities and collateralized mortgage obligations	721,507		721,507
TOTAL	1,205,751		1,205,751		$ 1,259,137
Gains and losses from investment sales/calls realized	$ 0	$ 0	$ 0	$ 0

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Securities - Securities Gross (Details) $ in Thousands	Jun. 30, 2024 USD ($) segment	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)
Less Than 12 Months
Fair Value	$ 79,612	$ 67,104
Unrealized Losses	(610)	(745)
More Than 12 Months
Fair Value	1,065,820	1,060,039
Unrealized Losses	(165,500)	(157,100)
Total
Fair Value	1,145,432	1,127,143
Unrealized Losses	$ (166,110)	(157,845)	$ (166,100)
Number of investment securities segregation for impairment evaluation | segment	2
U.S. Government agencies
Less Than 12 Months
Fair Value		3,757
Unrealized Losses		(73)
More Than 12 Months
Fair Value	$ 86,212	87,291
Unrealized Losses	(12,076)	(11,469)
Total
Fair Value	86,212	91,048
Unrealized Losses	(12,076)	(11,542)
Mortgage Backed Securities - residential
Less Than 12 Months
Fair Value	8,455	3,810
Unrealized Losses	(69)	(41)
More Than 12 Months
Fair Value	526,511	556,414
Unrealized Losses	(86,358)	(83,634)
Total
Fair Value	534,966	560,224
Unrealized Losses	(86,427)	(83,675)
Mortgage Backed Securities - commercial
More Than 12 Months
Fair Value	7,444	7,483
Unrealized Losses	(399)	(436)
Total
Fair Value	7,444	7,483
Unrealized Losses	(399)	(436)
Collateralized Mortgage Obligations
Less Than 12 Months
Fair Value		12,981
Unrealized Losses		(303)
More Than 12 Months
Fair Value	167,423	164,871
Unrealized Losses	(28,946)	(28,272)
Total
Fair Value	167,423	177,852
Unrealized Losses	(28,946)	(28,575)
State and municipal obligations
Less Than 12 Months
Fair Value	69,381	45,154
Unrealized Losses	(531)	(319)
More Than 12 Months
Fair Value	246,421	212,022
Unrealized Losses	(32,229)	(27,690)
Total
Fair Value	315,802	257,176
Unrealized Losses	(32,760)	(28,009)
Municipal taxable
Less Than 12 Months
Fair Value	1,308
Unrealized Losses	(7)
More Than 12 Months
Fair Value	31,809	31,958
Unrealized Losses	(5,492)	(5,599)
Total
Fair Value	33,117	31,958
Unrealized Losses	(5,499)	(5,599)
U.S. Treasury
Less Than 12 Months
Fair Value	468	1,402
Unrealized Losses	(3)	(9)
Total
Fair Value	468	1,402
Unrealized Losses	$ (3)	$ (9)

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Securities - Roll forward of the credit losses recognized in earnings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Credit Losses Recognized in Earnings [Roll Forward]
Beginning balance	$ 2,974		$ 2,974	$ 2,974
Reductions for securities called during the period	0	$ 0	0	0
Ending balance	$ 2,974	$ 2,974	$ 2,974	$ 2,974

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Qualified Affordable Housing Project Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Qualified Affordable Housing Project Investments [Line Items]
Investment for qualified housing projects balance	$ 28,900		$ 7,800
Unfunded commitments related to the investments in qualified affordable housing projects	20,600
Recognized tax credits and other benefits form its investment	1,600	$ 674
Other non interest expense
Qualified Affordable Housing Project Investments [Line Items]
Investment for qualified housing projects balance		$ 390
Amortization expense	211
Income tax expense
Qualified Affordable Housing Project Investments [Line Items]
Amortization expense	$ 847

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Fair Value - Fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair value measurement
Securities available-for-sale	$ 1,205,751	$ 1,259,137
U.S. Government agencies
Fair value measurement
Securities available-for-sale	86,930	91,440
Mortgage Backed Securities - residential
Fair value measurement
Securities available-for-sale	543,755	569,885
Mortgage Backed Securities - commercial
Fair value measurement
Securities available-for-sale	7,444	7,483
Collateralized mortgage obligations
Fair value measurement
Securities available-for-sale	170,308	180,829
State and municipal
Fair value measurement
Securities available-for-sale	359,837	370,811
Municipal taxable
Fair value measurement
Securities available-for-sale	34,118	34,285
U.S. Treasury
Fair value measurement
Securities available-for-sale	467	1,402
Collateralized debt obligations
Fair value measurement
Securities available-for-sale	2,892	3,002
Level 2
Fair value measurement
Securities available-for-sale	1,202,054	1,254,955
Derivative Assets	2,994	2,878
Derivative Liabilities	(2,994)	(2,878)
Level 2 | U.S. Government agencies
Fair value measurement
Securities available-for-sale	86,930	91,440
Level 2 | Mortgage Backed Securities - residential
Fair value measurement
Securities available-for-sale	543,755	569,885
Level 2 | Mortgage Backed Securities - commercial
Fair value measurement
Securities available-for-sale	7,444	7,483
Level 2 | Collateralized mortgage obligations
Fair value measurement
Securities available-for-sale	170,308	180,829
Level 2 | State and municipal
Fair value measurement
Securities available-for-sale	359,032	369,631
Level 2 | Municipal taxable
Fair value measurement
Securities available-for-sale	34,118	34,285
Level 2 | U.S. Treasury
Fair value measurement
Securities available-for-sale	467	1,402
Level 3
Fair value measurement
Securities available-for-sale	3,697	4,182
Level 3 | State and municipal
Fair value measurement
Securities available-for-sale	805	1,180
Level 3 | Collateralized debt obligations
Fair value measurement
Securities available-for-sale	$ 2,892	$ 3,002

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Fair Value - Additional Information (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value, assets, level 1 to level 2 transfers, amount	$ 0		$ 0
Fair value, assets, level 2 to level 1 transfers, amount	0		0
Fair value, liabilities, level 1 to level 2 transfers, amount	0		0
Fair value, liabilities, level 2 to level 1 transfers, amount	0		$ 0
Other Real Estate | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value adjustment	32
Other Real Estate | Level 3 | Commercial
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	170
State and municipal obligations | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	805	$ 1,180
Other Real Estate | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 170	107
Fair value adjustment		57
Other Real Estate | Level 3 | Commercial
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value		26
Other Real Estate | Level 3 | Residential
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value		$ 81
Discount rate | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0.05
Discount rate | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	1
Discount rate | Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0.65

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Fair Value - 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) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	$ 3,693	$ 4,182	$ 4,531
Total realized/unrealized gains or losses - Included in other comprehensive income	4	(110)	16
Settlements		(375)	(365)
Ending balance	3,697	3,697	4,182
State and municipal
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	805	1,180	1,545
Settlements		(375)	(365)
Ending balance	805	805	1,180
Collateralized debt obligations
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	2,888	3,002	2,986
Total realized/unrealized gains or losses - Included in other comprehensive income	4	(110)	16
Ending balance	$ 2,892	$ 2,892	$ 3,002

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Fair Value - Quantitative information about recurring and non-recurring Level 3 fair value measurements (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
State and municipal obligations | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Fair Value	$ 805	$ 1,180
State and municipal obligations | Minimum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0424	0.0404
State and municipal obligations | Maximum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0444	0.0444
Collateralized debt obligations | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0727	0.0736
Collateralized debt obligations | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Fair Value	$ 2,892	$ 3,002
Collateral dependent loans | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Fair Value	$ 5,103	$ 11,306
Collateral dependent loans | Minimum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	0.0500	0.0000
Collateral dependent loans | Maximum | Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Range of Inputs (percent)	1.0000	1.0000

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Fair Value - Carrying amounts and estimated fair value of financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	$ 75,073	$ 76,759
Federal funds sold		282
Securities available-for-sale	1,205,751	1,259,137
Restricted stock	15,378	15,364
Loans, net	3,030,377	3,025,621
Accrued interest receivable	23,733	24,877
Deposits	(4,130,751)	(4,094,552)
Short-term borrowings	(38,211)	(67,221)
Other borrowings	(108,507)	(108,496)
Accrued interest payable	(3,213)	(2,588)
Level 1
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	24,820	25,467
Level 2
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	50,253	51,292
Federal funds sold		282
Securities available-for-sale	1,202,054	1,254,955
Accrued interest receivable	6,558	6,755
Deposits	(4,130,751)	(4,094,552)
Short-term borrowings	(38,211)	(67,221)
Other borrowings	(108,507)	(108,496)
Accrued interest payable	(3,213)	(2,588)
Level 3
Carrying amount and estimated fair value of financial instruments
Securities available-for-sale	3,697	4,182
Loans, net	3,030,377	3,025,621
Accrued interest receivable	17,175	18,122
Carrying Value
Carrying amount and estimated fair value of financial instruments
Cash and due from banks	75,073	76,759
Federal funds sold		282
Securities available-for-sale	1,205,751	1,259,137
Restricted stock	15,378	15,364
Loans, net	3,165,675	3,128,054
Accrued interest receivable	23,733	24,877
Deposits	(4,132,327)	(4,090,068)
Short-term borrowings	(38,211)	(67,221)
Other borrowings	(108,575)	(108,577)
Accrued interest payable	$ (3,213)	$ (2,588)

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Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Borrowings
Federal Funds Purchased	$ 3,125	$ 27,300
Repurchase Agreements	35,086	39,921
Short-term borrowings	$ 38,211	$ 67,221

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Borrowings - Repurchase Agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Repurchase Agreements
Repurchase Agreements	$ 35,086	$ 39,921
Overnight and continuous
Repurchase Agreements
Repurchase Agreements	29,711	32,319
Up to 30 days
Repurchase Agreements
Repurchase Agreements	300	300
30 to 90 Days
Repurchase Agreements
Repurchase Agreements		3,637
Greater than 90 days
Repurchase Agreements
Repurchase Agreements	$ 5,075	$ 3,665

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Borrowings - Schedule of Other Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Borrowings
FHLB advances	$ 83,575	$ 108,577
Notes payable	25,000
TOTAL	$ 108,575	$ 108,577

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Borrowings - Aggregate Minimum Annual Retirements (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Borrowings
2025	$ 78,605
2026	4,970
2027	25,000
Total other borrowings	$ 108,575

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Components of Net Periodic Benefit Cost - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 141	$ 157	$ 282	$ 314
Interest cost	947	956	1,894	1,912
Expected return on plan assets	(1,052)	(969)	(2,103)	(1,939)
Net amortization of net (gain) loss	108	188	217	376
Net Periodic Benefit Cost	144	332	290	663
Postretirement Health Coverage
Defined Benefit Plan Disclosure [Line Items]
Service cost	4	5	8	10
Interest cost	35	39	69	77
Net amortization of net (gain) loss	(20)	(13)	(40)	(26)
Net Periodic Benefit Cost	$ 19	$ 31	$ 37	$ 61

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Components of Net Periodic Benefit Cost - Employer Contributions (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Defined Benefit Plan Disclosure
Amount of potential discretionary contributions accrued to a defined contribution plan	$ 1,600,000		$ 1,300,000
Pension Benefits
Defined Benefit Plan Disclosure
Expected future benefit payment		$ 3,900,000
Contributions by employer	526,000
Pension Benefits | Employee Stock Option
Defined Benefit Plan Disclosure
Expected future benefit payment		604,000
Contributions by employer	0
Postretirement Health Coverage
Defined Benefit Plan Disclosure
Expected future benefit payment		$ 249,000
Contributions by employer	$ 134,000

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Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue from Contracts with Customers
Net gains on sales of loans	$ 299	$ 311	$ 475	$ 490
Loan servicing fees	414	264	683	549
Other service charges and fees	286	196	509	400
Other	723	1,443	1,266	1,968
TOTAL NON-INTEREST INCOME	9,905	10,453	19,336	19,828
Service charges on deposits and debit card fee income
Revenue from Contracts with Customers
Revenue within scope of ASC 606	6,730	7,054	13,437	13,872
Asset management fees
Revenue from Contracts with Customers
Revenue within scope of ASC 606	1,318	1,185	2,652	2,502
Interchange income
Revenue from Contracts with Customers
Revenue within scope of ASC 606	135		314	47
Other
Revenue from Contracts with Customers
Revenue within scope of ASC 606	$ 79	$ (37)	$ 87	$ (31)

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (138,110)	$ (125,589)	$ (127,087)	$ (139,974)
Change in Other comprehensive income (loss) before reclassification, Unrealized gains and Losses on available-for-sale Securities	3,535	(15,808)	(7,561)	(1,570)
Amount reclassified from accumulated other comprehensive income, unrealized gains and losses on available for-sale-Securities	74	147	147	294
Net current period other comprehensive income (loss)	3,609	(15,661)	(7,414)	(1,276)
Ending balance	(134,501)	(141,250)	(134,501)	(141,250)
Unrealized gains and (Losses) on available- for-sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(129,096)	(114,658)	(118,000)	(128,896)
Change in Other comprehensive income (loss) before reclassification, Unrealized gains and Losses on available-for-sale Securities	3,535	(15,808)	(7,561)	(1,570)
Net current period other comprehensive income (loss)	3,535	(15,808)	(7,561)	(1,570)
Ending balance	(125,561)	(130,466)	(125,561)	(130,466)
Retirement plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(9,014)	(10,931)	(9,087)	(11,078)
Amount reclassified from accumulated other comprehensive income, unrealized gains and losses on available for-sale-Securities	74	147	147	294
Net current period other comprehensive income (loss)	74	147	147	294
Ending balance	$ (8,940)	$ (10,784)	$ (8,940)	$ (10,784)

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Accumulated Other Comprehensive Income - Unrealized gains (losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss)
Beginning balance	$ (138,110)	$ (125,589)	$ (127,087)	$ (139,974)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	3,609	(15,661)	(7,414)	(1,276)
Ending balance	(134,501)	(141,250)	(134,501)	(141,250)
Unrealized gains and (Losses) on available- for-sale Securities
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(129,096)	(114,658)	(118,000)	(128,896)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	3,535	(15,808)	(7,561)	(1,570)
Ending balance	(125,561)	(130,466)	(125,561)	(130,466)
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(131,262)	(116,844)	(120,252)	(131,135)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	3,532	(15,827)	(7,478)	(1,536)
Ending balance	(127,730)	(132,671)	(127,730)	(132,671)
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment
Accumulated Other Comprehensive Income (Loss)
Beginning balance	2,166	2,186	2,252	2,239
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	3	19	(83)	(34)
Ending balance	2,169	2,205	2,169	2,205
Retirement plans
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(9,014)	(10,931)	(9,087)	(11,078)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	74	147	147	294
Ending balance	$ (8,940)	$ (10,784)	$ (8,940)	$ (10,784)

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Accumulated Other Comprehensive Income - Amount reclassified from accumulated other comprehensive income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income tax expense	$ (2,213)	$ (3,507)	$ (4,418)	$ (7,116)
Net Income (Loss)	11,369	15,987	22,293	31,967
Amount reclassified from accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net Income (Loss)	(147)	(147)	(74)	(294)
Retirement plans | Amount reclassified from accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Change in funded status of post retirement benefits, net of taxes	(195)	(196)	(98)	(392)
Income tax expense	48	49	24	98
Net Income (Loss)	$ (147)	$ (147)	$ (74)	$ (294)

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Leases (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Leases
Operating lease liabilities	$ 5,468,000	$ 5,456,000
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities	Other Liabilities
Operating lease right-of-use assets	$ 5,396,000	$ 5,392,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Weighted average remaining lease term for operating leases	8 years 6 months
Weighted average discount rate	2.28%

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Leases - Lease cost (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Leases
Operating lease cost	$ 487
Short-term lease cost	55
Variable lease cost	18
Total lease cost	560
Cash paid for amounts included in the measurement of operating lease liabilities	487
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 429

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Leases - Future minimum payments for operating leases (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Twelve Months Ended March 31,
2025	$ 986,000
2026	927,000
2027	863,000
2028	847,000
2029	548,000
Thereafter	2,007,000
Total Future Minimum Lease Payments	6,178,000
Amounts Representing Interest	(710,000)
Present Value of Net Future Minimum Lease Payments	$ 5,468,000	$ 5,456,000

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Subsequent Events (Details) - Subsequent Events - SimplyBank $ / shares in Units, $ in Millions	Jul. 01, 2024 USD ($) $ / shares
Subsequent Event [Line Items]
Price per share (in USD per share) | $ / shares	$ 718.38
Aggregate value of the transaction | $	$ 73.4