LOANS (covered) (Tables) (Covered Loans)

12 Months Ended

Dec. 31, 2013

The following table reflects the carrying value of all covered purchased impaired and nonimpaired loans as of December 31:



	2013						2012
(Dollars in thousands)	Loans Accounted For Under FASB ASC Topic 310-30		Loans excluded from FASB ASC Topic 310-30		Total Covered Loans		Loans Accounted For Under FASB ASC Topic 310-30		Loans Excluded From FASB ASC Topic 310-30		Total Covered Loans
Commercial	$	41,172	$	1,144	$	42,316	$	94,775	$	7,351	$	102,126
Real estate - construction	8,556		0		8,556		10,631		0		10,631
Real estate - commercial	263,146		5,487		268,633		458,066		7,489		465,555
Real estate - residential	80,733		0		80,733		100,694		0		100,694
Installment	5,073		568		5,641		7,911		763		8,674
Home equity	975		48,649		49,624		2,080		55,378		57,458
Other covered loans	0		2,370		2,370		0		2,978		2,978
Total covered loans	$	399,655	$	58,218	$	457,873	$	674,157	$	73,959	$	748,116

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

Information as to covered nonaccrual loans, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:



(Dollars in thousands)	2013		2012		2011
Impaired loans
Nonaccrual loans ⁽¹⁾
Commercial	$	540	$	4,498	$	7,203
Real estate-commercial	1,349		2,986		2,192
Installment	5		0		0
Home equity	1,893		4,227		1,747
All other	0		11		18
Total nonaccrual loans	3,787		11,722		11,160
Accruing troubled debt restructurings	335		0		0
Total impaired loans	$	4,122	$	11,722	$	11,160

Interest income effect
Gross amount of interest that would have been recorded under original terms	$	412	$	673	$	1,020
Interest included in income
Nonaccrual loans	24		85		58
Troubled debt restructurings	6		0		0
Total interest included in income	30		85		58
Net impact on interest income	$	382	$	588	$	962

⁽¹⁾Nonaccrual loans include nonaccrual TDRs of $0.9 million as of December 31, 2013 and none as of December 31, 2012 and 2011.

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



	As of 12/31/2013
(Dollars in thousands)	Current Balance		Unpaid Principal Balance		Related Allowance		Average Balance		Interest Income Recognized
Loans with no related allowance recorded
Commercial	$	875	$	1,131	$	0	$	1,832	$	11
Real estate - commercial	1,349		2,648		0		1,786		4
Installment	5		5		0		2		0
Home equity	1,893		2,899		0		2,611		15
All other	0		0		0		8		0
Total	$	4,122	$	6,683	$	0	$	6,239	$	30



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

Changes in covered OREO were as follows:



	Years Ended December 31,
(Dollars in thousands)	2013		2012		2011
Balance at beginning of year	$	28,862	$	44,818	$	35,257
Additions
Commercial	23,846		16,759		46,880
Residential	879		3,916		2,753
Total additions	24,725		20,675		49,633
Disposals
Commercial	22,065		27,044		26,693
Residential	948		2,820		7,849
Total disposals	23,013		29,864		34,542
Valuation adjustments
Commercial	3,320		5,872		4,407
Residential	134		895		1,123
Total valuation adjustments	3,454		6,767		5,530
Balance at end of year	$	27,120	$	28,862	$	44,818

Loans Excluded from FASB ASC Topic 310-30

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)	2013			2012			2011
Balance at beginning of year	$	224,694		$	344,410		$	509,945
Reclassification from non-accretable difference	1,470			29,606			39,079
Accretion	(58,422		)	(91,485		)	(125,524		)
Other net activity ⁽¹⁾	(34,071		)	(57,837		)	(79,090		)
Balance at end of year	$	133,671		$	224,694		$	344,410

⁽¹⁾ Includes the impact of loan repayments and charge-offs.

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



	As of December 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 still accruing
Loans
Commercial	$	60	$	335	$	483	$	878	$	266	$	1,144	$	0
Real estate - commercial	184		0		1,263		1,447		4,040		5,487		0
Installment	0		0		5		5		563		568		0
Home equity	239		36		1,727		2,002		46,647		48,649		0
All other	9		4		0		13		2,357		2,370		0
Total	$	492	$	375	$	3,478	$	4,345	$	53,873	$	58,218	$	0



	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