LOANS (covered) (Tables) (Covered Loans)

3 Months Ended

Mar. 31, 2013

Covered Loans

Carrying Value of Purchased Impaired and Nonimpaired Loans

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

	March 31, 2013						December 31, 2012
(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		Total purchased loans
Commercial	$	83,262	$	7,162	$	90,424	$	94,775	$	7,351	$	102,126
Real estate - construction	9,866		0		9,866		10,631		0		10,631
Real estate - commercial	419,177		6,773		425,950		458,066		7,489		465,555
Real estate - residential	95,991		0		95,991		100,694		0		100,694
Installment	6,938		702		7,640		7,911		763		8,674
Home equity	1,706		53,315		55,021		2,080		55,378		57,458
Other covered loans	0		2,906		2,906		0		2,978		2,978
Total covered loans	$	616,940	$	70,858	$	687,798	$	674,157	$	73,959	$	748,116

Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans

Changes in the carrying amount of accretable difference for covered purchased impaired loans were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2013			2012
Balance at beginning of period	$	224,694		$	344,410
Reclassification from nonaccretable difference	7,751			14,384
Accretion	(17,947		)	(25,919		)
Other net activity (1)	(5,828		)	(19,206		)
Balance at end of period	$	208,670		$	313,669

Commercial and Consumer Credit Exposure by Risk Attribute

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

	As of March 31, 2013
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Total
Pass	$	43,544	$	1,608	$	209,130	$	254,282
Special Mention	10,071		1		49,927		59,999
Substandard	34,823		8,257		166,893		209,973
Doubtful	1,986		0		0		1,986
Total	$	90,424	$	9,866	$	425,950	$	526,240

(Dollars in thousands)	Real estate residential		Installment		Home equity		Other		Total
Performing	$	95,991	$	7,640	$	52,906	$	2,893	$	159,430
Nonperforming	0		0		2,115		13		2,128
Total	$	95,991	$	7,640	$	55,021	$	2,906	$	161,558

	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

(Dollars in thousands)	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

Loan Delinquency, including Nonaccrual Loans

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

	As of March 31, 2013
(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 accruing
Loans
Commercial	$	0	$	33	$	2,022	$	2,055	$	5,107	$	7,162	$	0
Real estate - commercial	0		81		1,274		1,355		5,418		6,773		0
Installment	0		0		0		0		702		702		0
Home equity	99		343		1,614		2,056		51,259		53,315		0
All other	11		11		41		63		2,843		2,906		28
Total	$	110	$	468	$	4,951	$	5,529	$	65,329	$	70,858	$	28

	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 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

Covered Nonaccrual Loans

Information on covered nonaccrual loans was as follows:

(Dollars in thousands)	March 31, 2013		December 31, 2012
Nonaccrual loans
Commercial	$	2,097	$	4,498
Real estate-commercial	1,282		2,986
Home equity	2,115		4,227
All other	13		11
Total	$	5,507	$	11,722

	Three months ended
	March 31,
(Dollars in thousands)	2013		2012
Interest income effect on impaired loans
Gross amount of interest that would have been recorded under original terms	$	138	$	208
Interest included in income	7		48
Net impact on interest income	$	131	$	160

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 March 31, 2013
(Dollars in thousands)	Current Balance		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		YTD Interest Income Recognized
Loans with no related allowance recorded:
Commercial	$	2,097	$	4,345	$	0	$	3,298	$	3
Real estate - commercial	1,282		2,673		0		2,134		1
Home equity	2,115		3,342		0		3,171		3
All other	13		13		0		12		0
Total	$	5,507	$	10,373	$	0	$	8,615	$	7

	As of December 31, 2012
(Dollars in thousands)	Current Balance		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		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

Changes in Other Real Estate Owned

Changes in covered OREO were as follows:

	Three months ended
	March 31,
(Dollars in thousands)	2013		2012
Balance at beginning of period	$	28,862	$	44,818
Additions
Commercial	6,462		2,750
Residential	216		2,624
Total additions	6,678		5,374
Disposals
Commercial	4,621		5,005
Residential	344		543
Total disposals	4,965		5,548
Write-downs
Commercial	1,125		3,084
Residential	105		71
Total write-downs	1,230		3,155
Balance at end of period	$	29,345	$	41,489