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

6 Months Ended

Jun. 30, 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 June 30, 2014
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Total
Pass	$	1,101,219	$	111,815	$	1,422,809	$	2,635,843
Special Mention	24,845		65		14,223		39,133
Substandard	17,629		1,802		54,699		74,130
Doubtful	0		0		0		0
Total	$	1,143,693	$	113,682	$	1,491,731	$	2,749,106



(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other		Total
Performing	$	365,795	$	42,879	$	378,181	$	116,868	$	903,723
Nonperforming	6,806		459		2,565		0		9,830
Total	$	372,601	$	43,338	$	380,746	$	116,868	$	913,553



	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 June 30, 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	$	319	$	21	$	4,231	$	4,571	$	1,139,122	$	1,143,693	$	0
Real estate - construction	0		0		223		223		113,459		113,682		0
Real estate - commercial	1,384		2,913		10,208		14,505		1,477,226		1,491,731		0
Real estate - residential	702		964		3,817		5,483		367,118		372,601		0
Installment	281		14		276		571		42,767		43,338		0
Home equity	631		371		1,230		2,232		378,514		380,746		0
Other	378		197		256		831		116,037		116,868		256
Total	$	3,695	$	4,480	$	20,241	$	28,416	$	3,634,243	$	3,662,659	$	256



	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 and six months ended June 30, 2014 and 2013.



	Three months ended
	June 30, 2014					June 30, 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	$	153	$	151	4	$	171	$	171
Real estate - construction	0	0		0		0	0		0
Real estate - commercial	2	295		285		3	659		657
Real estate - residential	14	844		733		9	596		594
Installment	3	14		13		3	17		16
Home equity	15	512		486		6	82		81
Total	37	$	1,818	$	1,668	25	$	1,525	$	1,519



	Six months ended
	June 30, 2014					June 30, 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	6	$	226	$	216	10	$	7,738	$	7,047
Real estate - construction	0	0		0		0	0		0
Real estate - commercial	8	2,152		2,085		7	2,251		2,242
Real estate - residential	23	1,390		1,263		30	1,969		1,850
Installment	4	17		13		11	154		97
Home equity	23	759		637		30	883		763
Total	64	$	4,544	$	4,214	88	$	12,995	$	11,999

Loans Restructured, Modifications

The following table provides information on how TDRs were modified during the three and six months ended June 30, 2014 and 2013.



	Three months ended				Six months ended
	June 30,⁽²⁾				June 30,⁽²⁾
(Dollars in thousands)	2014		2013		2014		2013
Extended maturities	$	185	$	268	$	826	$	8,068
Adjusted interest rates	0		0		289		562
Combination of rate and maturity changes	50		135		1,271		236
Forbearance	252		0		316		0
Other ⁽¹⁾	1,181		1,116		1,512		3,133
Total	$	1,668	$	1,519	$	4,214	$	11,999

(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:



	June 30,
	2014			2013
(Dollars in thousands)	Number of loans	Period end balance		Number of loans	Period end balance
Commercial	1	$	143	3	$	6,238
Real estate - construction	0	0		0	0
Real estate - commercial	0	0		1	72
Real estate - residential	2	36		3	185
Installment	1	1		3	14
Home equity	3	93		3	17
Total	7	$	273	13	$	6,526

Nonaccrual, Restructured and Impaired Loans

The following table provides information on nonaccrual loans, TDRs and total impaired loans.



(Dollars in thousands)	June 30, 2014		December 31, 2013
Impaired loans
Nonaccrual loans⁽¹⁾
Commercial	$	7,077	$	7,934
Real estate-construction	223		223
Real estate-commercial	15,288		17,286
Real estate-residential	6,806		8,606
Installment	459		574
Home equity	2,565		2,982
Other	0		0
Nonaccrual loans ⁽¹⁾	32,418		37,605
Accruing troubled debt restructurings	12,607		15,094
Total impaired loans	$	45,025	$	52,699

(1) Nonaccrual loans include nonaccrual TDRs of $11.0 million and $13.0 million as of June 30, 2014 and December 31, 2013, respectively.



	Three months ended				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest income effect on impaired loans
Gross amount of interest that would have been recorded under original terms	$	695	$	1,135	$	1,504	$	2,257
Interest included in income
Nonaccrual loans	86		128		161		342
Troubled debt restructurings	101		100		210		201
Total interest included in income	187		228		371		543
Net impact on interest income	$	508	$	907	$	1,133	$	1,714

Commitments outstanding to borrowers with nonaccrual loans					$	25	$	2,351

Investment in Impaired Loans

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



	As of June 30, 2014
(Dollars in thousands)	Current balance		Contractual principal balance		Related allowance		Average current balance		YTD interest income recognized		Quarterly interest income recognized
Loans with no related allowance recorded
Commercial	$	7,383	$	9,049	$	0	$	5,933	$	53	$	29
Real estate - construction	223		443		0		223		0		0
Real estate - commercial	12,822		16,524		0		12,225		126		61
Real estate - residential	8,619		9,724		0		9,595		83		41
Installment	524		550		0		544		4		2
Home equity	2,923		3,910		0		3,021		25		13
Other	0		0		0		0		0		0
Total	32,494		40,200		0		31,541		291		146

Loans with an allowance recorded
Commercial	2,872		3,068		775		5,233		26		17
Real estate - construction	0		0		0		0		0		0
Real estate - commercial	7,427		8,552		2,091		9,848		33		14
Real estate - residential	2,131		2,201		368		2,097		20		10
Installment	0		0		0		0		0		0
Home equity	101		101		2		101		1		0
Other	0		0		0		0		0		0
Total	12,531		13,922		3,236		17,279		80		41

Total
Commercial	10,255		12,117		775		11,166		79		46
Real estate - construction	223		443		0		223		0		0
Real estate - commercial	20,249		25,076		2,091		22,073		159		75
Real estate - residential	10,750		11,925		368		11,692		103		51
Installment	524		550		0		544		4		2
Home equity	3,024		4,011		2		3,122		26		13
Other	0		0		0		0		0		0
Total	$	45,025	$	54,122	$	3,236	$	48,820	$	371	$	187



	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				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Balance at beginning of period	$	12,743	$	11,993	$	19,806	$	12,526
Additions
Commercial	557		1,759		1,391		2,316
Residential	973		233		1,343		380
Total additions	1,530		1,992		2,734		2,696
Disposals
Commercial	189		1,641		8,046		1,882
Residential	314		357		428		651
Total disposals	503		1,998		8,474		2,533
Valuation adjustment
Commercial	315		156		538		561
Residential	85		33		158		330
Total valuation adjustment	400		189		696		891
Balance at end of period	$	13,370	$	11,798	$	13,370	$	11,798