LOANS (covered) (Tables) (Covered Loans)

6 Months Ended

Jun. 30, 2011

Carrying Value of Purchased Impaired and Nonimpaired Loans

The following table reflects the carrying value of all purchased impaired and nonimpaired loans:

	June 30, 2011						December 31, 2010
(Dollars in thousands)	Loans Accounted For Under FASB ASC Topic 310-30		Loans excluded from FASB ASC Topic 310-30 (1)		Total Purchased Loans		Loans Accounted For Under FASB ASC Topic 310-30		Loans Excluded From FASB ASC Topic 310-30 (1)		Total Purchased Loans
Commercial	$	234,024	$	17,729	$	251,753	$	295,600	$	38,439	$	334,039
Real estate - construction		40,811		0		40,811		42,743		0		42,743
Real estate - commercial		714,240		12,645		726,885		837,942		17,783		855,725
Real estate - residential		134,131		0		134,131		147,052		0		147,052
Installment		13,989		1,208		15,197		19,560		1,511		21,071
Home equity		6,289		62,375		68,664		7,241		66,454		73,695
Other covered loans		0		5,289		5,289		0		7,168		7,168
Total covered loans	$	1,143,484	$	99,246	$	1,242,730	$	1,350,138	$	131,355	$	1,481,493

(1) Includes loans with revolving privileges which are scoped out of FASB ASC Topic 310-30 and certain loans which First Financial elected to treat under the cost recovery method of accounting.

Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans

Changes in the carrying amount of accretable yield for purchased impaired and nonimpaired loans accounted for under FASB ASC Topic 310-30 were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2011			2010			2011			2010
Balance at beginning of period (1)	$	461,290		$	573,381		$	509,945		$	623,669
Additions		0			0			0			0
Reclassification from non-accretable difference		11,229			0			33,206			0
Accretion		(31,818	)		(33,046	)		(66,279	)		(69,205	)
Other net activity (2)		(18,920	)		(25,899	)		(55,091	)		(40,028	)
Balance at end of period	$	421,781		$	514,436		$	421,781		$	514,436

(1) Excludes loans with revolving privileges which are scoped out of FASB Topic 310-30 and certain loans which First Financial elected to treat under the cost recovery method.

(2) Includes the impact of loan repayments and charge-offs.

Covered Nonaccrual Loans

Information as to covered nonaccrual loans was as follows:

(Dollars in thousands)	June 30, 2011		December 31, 2010
Principal balance
Nonaccrual loans
Commercial	$	8,733	$	16,190
Real estate-commercial		2,883		2,074
Home equity		1,157		1,491
All other		10		0
Total	$	12,783	$	19,755

	Three Months Ended		Six Months Ended
(Dollars in thousands)	June 30, 2011		June 30, 2011
Interest income effect
Gross amount of interest that would have been recorded under original terms	$	961	$	2,019
Interest included in income		54		163
Net impact on interest income	$	907	$	1,856

Commercial and Consumer Credit Exposure by Risk Attribute

Covered commercial and consumer credit exposure by risk attribute was as follows:

	As of June 30, 2011
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial
Pass	$	159,323	$	7,453	$	384,580
Special Mention		28,341		13,019		79,563
Substandard		44,444		20,339		253,858
Doubtful		19,645		0		8,884
Total	$	251,753	$	40,811	$	726,885

(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other
Performing	$	134,131	$	15,197	$	67,507	$	5,289
Nonperforming		0		0		1,157		0
Total	$	134,131	$	15,197	$	68,664	$	5,289

	As of December 31, 2010
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial
Pass	$	225,088	$	14,021	$	476,140
Special Mention		35,768		5,743		106,057
Substandard		60,090		22,979		268,651
Doubtful		13,093		0		4,877
Total	$	334,039	$	42,743	$	855,725

(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other
Performing	$	147,052	$	21,071	$	72,204	$	7,168
Nonperforming		0		0		1,491		0
Total	$	147,052	$	21,071	$	73,695	$	7,168

Changes in Other Real Estate Owned

Changes in covered other real estate owned were as follows:

	Six Months Ended		Full Year
(Dollars in thousands)	June 30, 2011		December 31, 2010
Balance at beginning of period	$	35,257	$	12,916
Additions
Commercial		21,732		22,237
Residential		1,825		9,827
Total additions		23,557		32,064
Disposals
Commercial		11,500		4,744
Residential		6,091		4,536
Total disposals		17,591		9,280
Write-downs
Commercial		3,524		414
Residential		1,012		29
Total write-downs		4,536		443
Balance at end of period	$	36,687	$	35,257

Loans Excluded from FASB ASC Topic 310-30

Investment in Impaired Loans

First Financial’s investment in covered impaired loans, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:

	As of June 30, 2011
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		YTD Interest Income Recognized		Quarterly Interest Income Recognized
Loans with no related allowance recorded:
Commercial	$	8,733	$	11,215	$	0	$	11,262	$	144	$	51
Real estate - commercial		2,883		3,634		0		2,183		2		0
Home equity		1,157		2,257		0		1,311		17		3
All other		10		10		0		7		0		0
Total	$	12,783	$	17,116	$	0	$	14,763	$	163	$	54

	As of December 31, 2010
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		YTD Interest Income Recognized
Loans with no related allowance recorded:
Commercial	$	16,190	$	18,346	$	0	$	12,324	$	316
Real estate - commercial		2,074		5,412		0		3,910		14
Installment		0		0		0		255		0
Home equity		1,491		3,137		0		1,597		68
Total	$	19,755	$	26,895	$	0	$	18,086	$	398

Loan Delinquency, including Nonaccrual Loans

Covered loan delinquency, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:

	As of June 30, 2011
	30 - 59 days past due		60 - 89 days past due		> 90 days past due		Total past due		Current		Total		> 90 days past due and still accruing
Loans
Commercial	$	1,346	$	1,875	$	5,189	$	8,410	$	9,319	$	17,729	$	0
Real estate - commercial		1,408		29		2,841		4,278		8,367		12,645		0
Installment		0		0		0		0		1,208		1,208		0
Home equity		1,353		1,086		1,103		3,542		58,833		62,375		0
All other		159		5		10		174		5,115		5,289		0
Total	$	4,266	$	2,995	$	9,143	$	16,404	$	82,842	$	99,246	$	0

	As of December 31, 2010
	30 - 59 days past due		60 - 89 days past due		> 90 days past due		Total past due		Current		Total		> 90 days past due and still accruing
Loans
Commercial	$	880	$	419	$	13,764	$	15,063	$	23,376	$	38,439	$	0
Real estate - commercial		225		62		1,896		2,183		15,600		17,783		0
Installment		0		0		0		0		1,511		1,511		0
Home equity		656		443		1,424		2,523		63,931		66,454		0
All other		87		10		9		106		7,062		7,168		9
Total	$	1,848	$	934	$	17,093	$	19,875	$	111,480	$	131,355	$	9