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LOANS (covered) (Tables) (Covered Loans)
 12 Months Ended
Dec. 31, 2012
Carrying Value of Purchased Impaired and Nonimpaired Loans
The following table reflects the carrying value of all covered purchased impaired and nonimpaired loans as of December 31:

 
 
2012
 
2011
(Dollars in thousands)
 
Loans
Accounted
For Under
FASB ASC
Topic 310-30
 
Loans
excluded
from FASB
ASC Topic
310-30
 
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
 
$
94,775

 
$
7,351

 
$
102,126

 
$
182,625

 
$
13,267

 
$
195,892

Real estate - construction
 
10,631

 
0

 
10,631

 
17,120

 
0

 
17,120

Real estate - commercial
 
458,066

 
7,489

 
465,555

 
627,257

 
9,787

 
637,044

Real estate - residential
 
100,694

 
0

 
100,694

 
121,117

 
0

 
121,117

Installment
 
7,911

 
763

 
8,674

 
12,123

 
1,053

 
13,176

Home equity
 
2,080

 
55,378

 
57,458

 
4,146

 
60,832

 
64,978

Other covered loans
 
0

 
2,978

 
2,978

 
0

 
3,917

 
3,917

Total covered loans
 
$
674,157

 
$
73,959

 
$
748,116

 
$
964,388

 
$
88,856

 
$
1,053,244
Commercial and Consumer Credit Exposure by Risk Attribute
For further discussion of First Financial's monitoring of credit quality for commercial and consumer loans, including discussion of the risk attributes noted below, please see Note 10 - Loans.

Covered commercial and consumer credit exposure by risk attribute was as follows:
 
 
As of December 31, 2012
 
 
 
 
Real Estate
 
 
(Dollars in thousands)
 
Commercial
 
Construction
 
Commercial
 
Total
Pass
 
$
48,213

 
$
2,304

 
$
213,143

 
$
263,660

Special Mention
 
16,293

 
7

 
70,894

 
87,194

Substandard
 
35,596

 
8,320

 
181,345

 
225,261

Doubtful
 
2,024

 
0

 
173

 
2,197

Total
 
$
102,126

 
$
10,631

 
$
465,555

 
$
578,312


 
 
Real Estate
Residential
 
Installment
 
Home Equity
 
Other
 
Total
Performing
 
$
100,694

 
$
8,674

 
$
53,231

 
$
2,967

 
$
165,566

Nonperforming
 
0

 
0

 
4,227

 
11

 
4,238

Total
 
$
100,694

 
$
8,674

 
$
57,458

 
$
2,978

 
$
169,804


 
 
As of December 31, 2011
 
 
 
 
Real Estate
 
 
(Dollars in thousands)
 
Commercial
 
Construction
 
Commercial
 
Total
Pass
 
$
113,201

 
$
2,506

 
$
340,889

 
$
456,596

Special Mention
 
22,468

 
3,597

 
63,880

 
89,945

Substandard
 
52,103

 
11,017

 
230,870

 
293,990

Doubtful
 
8,120

 
0

 
1,405

 
9,525

Total
 
$
195,892

 
$
17,120

 
$
637,044

 
$
850,056


 
 
Real Estate
Residential
 
Installment
 
Home
Equity
 
Other
 
Total
Performing
 
$
121,117

 
$
13,176

 
$
63,231

 
$
3,899

 
$
201,423

Nonperforming
 
0

 
0

 
1,747

 
18

 
1,765

Total
 
$
121,117

 
$
13,176

 
$
64,978

 
$
3,917

 
$
203,188
Covered Nonaccrual Loans

Information as to covered nonaccrual loans was as follows:
(Dollars in thousands)
 
2012
 
2011
 
2010
Principal balance
 
 
 
 
 
 
Nonaccrual loans
 
 
 
 
 
 
Commercial
 
$
4,498

 
$
7,203

 
$
16,190

Real estate-commercial
 
2,986

 
2,192

 
2,074

Home equity
 
4,227

 
1,747

 
1,491

All other
 
11

 
18

 
0

Total
 
$
11,722

 
$
11,160

 
$
19,755

 
 
 
 
 
 
 
Interest income effect
 
 
 
 
 
 
Gross amount of interest that would have been recorded under original terms
 
$
673

 
$
1,020

 
$
1,453

Interest included in income
 
85

 
58

 
398

Net impact on interest income
 
$
588

 
$
962

 
$
1,055
Investment in Impaired Loans
Covered loans placed on nonaccrual status, excluding loans accounted for under FASB ASC Topic 310-30, are considered impaired. First Financial’s investment in covered impaired loans, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:
 
 
As of December 31, 2012
(Dollars in thousands)
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
YTD Interest
Income
Recognized
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
4,498

 
$
4,660

 
$
0

 
$
4,526

 
$
62

Real estate - commercial
 
2,986

 
3,216

 
0

 
2,153

 
18

Home equity
 
4,227

 
5,260

 
0

 
2,006

 
5

All other
 
11

 
11

 
0

 
13

 
0

Total
 
$
11,722

 
$
13,147

 
$
0

 
$
8,698

 
$
85


 
 
As of December 31, 2011
(Dollars in thousands)
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
YTD Interest
Income
Recognized
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
7,203

 
$
10,152

 
$
0

 
$
9,873

 
$
47

Real estate - commercial
 
2,192

 
4,002

 
0

 
2,504

 
5

Home equity
 
1,747

 
2,878

 
0

 
1,559

 
6

All other
 
18

 
18

 
0

 
9

 
0

Total
 
$
11,160

 
$
17,050

 
$
0

 
$
13,945

 
$
58



 
 
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
Changes in Other Real Estate Owned
Changes in covered OREO were as follows:
 
 
Years Ended December 31,
(Dollars in thousands)
 
2012
 
2011
 
2010
Balance at beginning of year
 
$
44,818

 
$
35,257

 
$
12,916

Additions
 
 

 
 

 
 
Commercial
 
16,759

 
46,880

 
22,237

Residential
 
3,916

 
2,753

 
9,827

Total additions
 
20,675

 
49,633

 
32,064

Disposals
 
 

 
 

 
 
Commercial
 
27,044

 
26,693

 
4,744

Residential
 
2,820

 
7,849

 
4,536

Total disposals
 
29,864

 
34,542

 
9,280

Write-downs
 
 

 
 

 
 
Commercial
 
5,872

 
4,407

 
414

Residential
 
895

 
1,123

 
29

Total write-downs
 
6,767

 
5,530

 
443

Balance at end of year
 
$
28,862

 
$
44,818

 
$
35,257
Loans Excluded from FASB ASC Topic 310-30
  
Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans
Changes in the carrying amount of accretable difference for covered purchased impaired loans for the years ended December 31 were as follows:
(Dollars in thousands)
 
2012
 
2011
 
2010
Balance at beginning of year
 
$
344,410

 
$
509,945

 
$
623,669

Reclassification from non-accretable difference
 
29,606

 
39,079

 
97,808

Accretion
 
(91,485
)
 
(125,524
)
 
(139,356
)
Other net activity (1)
 
(57,837
)
 
(79,090
)
 
(72,176
)
Balance at end of year
 
$
224,694

 
$
344,410

 
$
509,945

 
(1)   Includes the impact of loan repayments and charge-offs.
Loan Delinquency, including Nonaccrual Loans

Delinquency. Covered loan delinquency, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:
 
As of December 31, 2012
(Dollars in thousands)
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
$
351

 
$
148

 
$
3,781

 
$
4,280

 
$
3,071

 
$
7,351

 
$
0

Real estate - commercial
138

 
1,149

 
2,201

 
3,488

 
4,001

 
7,489

 
0

Installment
0

 
0

 
0

 
0

 
763

 
763

 
0

Home equity
286

 
296

 
3,697

 
4,279

 
51,099

 
55,378

 
0

All other
19

 
26

 
42

 
87

 
2,891

 
2,978

 
31

Total
$
794

 
$
1,619

 
$
9,721

 
$
12,134

 
$
61,825

 
$
73,959

 
$
31


 
As of December 31, 2011
(Dollars in thousands)
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
$
73

 
$
294

 
$
6,490

 
$
6,857

 
$
6,410

 
$
13,267

 
$
0

Real estate - commercial
184

 
0

 
1,870

 
2,054

 
7,733

 
9,787

 
0

Installment
0

 
0

 
0

 
0

 
1,053

 
1,053

 
0

Home equity
1,344

 
11

 
1,679

 
3,034

 
57,798

 
60,832

 
0

All other
10

 
6

 
125

 
141

 
3,776

 
3,917

 
107

Total
$
1,611

 
$
311

 
$
10,164

 
$
12,086

 
$
76,770

 
$
88,856

 
$
107