LOANS (excluding covered loans) (Tables) (Non Covered Loans)

3 Months Ended

Mar. 31, 2014

Non Covered Loans

Commercial and Consumer Credit Exposure by Risk Attribute

Commercial and consumer credit exposure by risk attribute was as follows:



	As of March 31, 2014
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Total
Pass	$	1,070,038	$	86,128	$	1,445,777	$	2,601,943
Special Mention	27,331		65		16,168		43,564
Substandard	20,688		1,803		51,946		74,437
Doubtful	0		0		0		0
Total	$	1,118,057	$	87,996	$	1,513,891	$	2,719,944



(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other		Total
Performing	$	352,514	$	44,512	$	371,727	$	114,250	$	883,003
Nonperforming	8,157		399		2,700		0		11,256
Total	$	360,671	$	44,911	$	374,427	$	114,250	$	894,259



	As of December 31, 2013
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Total
Pass	$	991,161	$	78,872	$	1,422,215	$	2,492,248
Special Mention	23,053		65		23,832		46,950
Substandard	21,454		1,804		50,940		74,198
Doubtful	0		0		0		0
Total	$	1,035,668	$	80,741	$	1,496,987	$	2,613,396



(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other		Total
Performing	$	344,325	$	46,559	$	373,472	$	115,727	$	880,083
Nonperforming	8,606		574		2,982		0		12,162
Total	$	352,931	$	47,133	$	376,454	$	115,727	$	892,245

Loan Delinquency, including Nonaccrual Loans

Loan delinquency, including loans classified as nonaccrual, was as follows:



	As of March 31, 2014
(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	$	1,040	$	160	$	6,846	$	8,046	$	1,110,011	$	1,118,057	$	0
Real estate - construction	0		0		223		223		87,773		87,996		0
Real estate - commercial	9,038		3,619		10,972		23,629		1,490,262		1,513,891		0
Real estate - residential	2,047		35		4,830		6,912		353,759		360,671		0
Installment	265		84		216		565		44,346		44,911		0
Home equity	579		112		1,405		2,096		372,331		374,427		0
Other	343		172		209		724		113,526		114,250		209
Total	$	13,312	$	4,182	$	24,701	$	42,195	$	3,572,008	$	3,614,203	$	209



	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 accruing
Loans
Commercial	$	2,016	$	161	$	7,136	$	9,313	$	1,026,355	$	1,035,668	$	0
Real estate - construction	0		0		223		223		80,518		80,741		0
Real estate - commercial	7,800		4,269		12,732		24,801		1,472,186		1,496,987		0
Real estate - residential	2,030		685		5,526		8,241		344,690		352,931		0
Installment	213		40		379		632		46,501		47,133		0
Home equity	985		292		1,648		2,925		373,529		376,454		0
Other	680		144		218		1,042		114,685		115,727		218
Total	$	13,724	$	5,591	$	27,862	$	47,177	$	3,458,464	$	3,505,641	$	218

Loans Restructured During Period

The following tables provide information on loan modifications classified as TDRs during the three months ended March 31, 2014 and 2013.



	Three months ended
	March 31, 2014					March 31, 2013
(Dollars in thousands)	Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance
Commercial	3	$	73	$	73	6	$	7,568	$	7,561
Real estate - construction	0	0		0		0	0		0
Real estate - commercial	6	1,857		1,849		4	1,592		1,588
Real estate - residential	9	545		539		21	1,373		1,320
Installment	1	3		3		8	138		130
Home equity	8	247		246		24	801		798
Total	27	$	2,725	$	2,710	63	$	11,472	$	11,397

Loans Restructured, Modifications

The following table provides information on how TDRs were modified during the three months ended March 31, 2014 and 2013.



	Three months ended
	March 31,⁽²⁾
(Dollars in thousands)	2014		2013
Extended maturities	$	669	$	8,481
Adjusted interest rates	293		568
Combination of rate and maturity changes	1,253		98
Forbearance	66		0
Other ⁽¹⁾	429		2,250
Total	$	2,710	$	11,397

(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions

(2) Balances are as of period end

Loan Restructuring, Loans with a Payment Default Within 12 Months of Loan Modification

The following table provides information on TDRs for which there was a payment default during the period that occurred within twelve months of the loan modification:



	March 31,
	2014			2013
(Dollars in thousands)	Number of Loans	Period End Balance		Number of Loans	Period End Balance
Commercial	1	$	143	2	$	85
Real estate - construction	0	0		0	0
Real estate - commercial	0	0		1	72
Real estate - residential	0	0		2	119
Installment	1	1		1	16
Home equity	1	24		1	54
Total	3	$	168	7	$	346

Nonaccrual, Restructured and Impaired Loans

Loans classified as nonaccrual and loans modified as TDRs are considered impaired. The following table provides information on nonaccrual loans, TDRs and total impaired loans.



(Dollars in thousands)	March 31, 2014		December 31, 2013
Impaired loans
Nonaccrual loans⁽¹⁾
Commercial	$	7,097	$	7,934
Real estate-construction	223		223
Real estate-commercial	16,758		17,286
Real estate-residential	8,157		8,606
Installment	399		574
Home equity	2,700		2,982
Other	0		0
Nonaccrual loans ⁽¹⁾	35,334		37,605
Accruing troubled debt restructurings	13,400		15,094
Total impaired loans	$	48,734	$	52,699

(1) Nonaccrual loans include nonaccrual TDRs of $14.6 million and $13.0 million as of March 31, 2014 and December 31, 2013, respectively.



	Three months ended
	March 31,
(Dollars in thousands)	2014		2013
Interest income effect on impaired loans
Gross amount of interest that would have been recorded under original terms	$	809	$	1,122
Interest included in income
Nonaccrual loans	75		214
Troubled debt restructurings	109		101
Total interest included in income	184		315
Net impact on interest income	$	625	$	807

Commitments outstanding to borrowers with nonaccrual loans	$	0	$	2,691

Investment in Impaired Loans

First Financial's investment in impaired loans was as follows:



	As of March 31, 2014
(Dollars in thousands)	Current Balance		Contractual Principal Balance		Related Allowance		Average Current Balance		YTD Interest Income Recognized
Loans with no related allowance recorded
Commercial	$	5,203	$	7,086	$	0	$	5,208	$	24
Real estate - construction	223		443		0		223		0
Real estate - commercial	11,498		15,188		0		11,927		65
Real estate - residential	9,876		11,448		0		10,083		42
Installment	465		492		0		554		2
Home equity	2,932		3,832		0		3,070		12
Other	0		0		0		0		0
Total	30,197		38,489		0		31,065		145

Loans with an allowance recorded
Commercial	5,813		7,925		1,383		6,413		9
Real estate - construction	0		0		0		0		0
Real estate - commercial	10,478		13,411		2,800		11,058		19
Real estate - residential	2,145		2,212		368		2,081		10
Installment	0		0		0		0		0
Home equity	101		101		2		101		1
Other	0		0		0		0		0
Total	18,537		23,649		4,553		19,653		39

Total
Commercial	11,016		15,011		1,383		11,621		33
Real estate - construction	223		443		0		223		0
Real estate - commercial	21,976		28,599		2,800		22,985		84
Real estate - residential	12,021		13,660		368		12,164		52
Installment	465		492		0		554		2
Home equity	3,033		3,933		2		3,171		13
Other	0		0		0		0		0
Total	$	48,734	$	62,138	$	4,553	$	50,718	$	184



	As of December 31, 2013
(Dollars in thousands)	Current Balance		Contractual Principal Balance		Related Allowance		Average Current Balance		Interest Income Recognized
Loans with no related allowance recorded
Commercial	$	5,212	$	7,083	$	0	$	10,712	$	165
Real estate - construction	223		443		0		599		0
Real estate - commercial	12,355		16,431		0		16,563		380
Real estate - residential	10,291		12,087		0		10,225		152
Installment	642		663		0		463		6
Home equity	3,208		4,108		0		3,145		44
Other	0		0		0		148		0
Total	31,931		40,815		0		41,855		747

Loans with an allowance recorded
Commercial	7,013		8,353		2,080		5,047		71
Real estate - construction	0		0		0		726		7
Real estate - commercial	11,638		14,424		2,872		21,098		110
Real estate - residential	2,016		2,072		348		1,997		37
Installment	0		0		0		0		0
Home equity	101		101		2		101		2
Other	0		0		0		167		0
Total	20,768		24,950		5,302		29,136		227

Total
Commercial	12,225		15,436		2,080		15,759		236
Real estate - construction	223		443		0		1,325		7
Real estate - commercial	23,993		30,855		2,872		37,661		490
Real estate - residential	12,307		14,159		348		12,222		189
Installment	642		663		0		463		6
Home equity	3,309		4,209		2		3,246		46
Other	0		0		0		315		0
Total	$	52,699	$	65,765	$	5,302	$	70,991	$	974

Changes in Other Real Estate Owned

Changes in OREO were as follows:



	Three months ended
	March 31,
(Dollars in thousands)	2014		2013
Balance at beginning of period	$	19,806	$	12,526
Additions
Commercial	834		557
Residential	370		147
Total additions	1,204		704
Disposals
Commercial	7,857		241
Residential	114		294
Total disposals	7,971		535
Valuation adjustment
Commercial	223		405
Residential	73		297
Total valuation adjustment	296		702
Balance at end of period	$	12,743	$	11,993