LOANS (Tables)

3 Months Ended

Mar. 31, 2015

Accounts, Notes, Loans and Financing Receivable [Line Items]

Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans

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



	Three months ended
	March 31,
(Dollars in thousands)	2015			2014
Balance at beginning of period	$	106,622		$	133,671
Reclassification from/(to) nonaccretable difference	(1,576		)	13,216
Accretion	(6,357		)	(9,717		)
Other net activity ⁽¹⁾	(6,701		)	(5,772		)
Balance at end of period	$	91,988		$	131,398

Commercial and Consumer Credit Exposure by Risk Attribute

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



	As of March 31, 2015
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Leasing		Total
Pass	$	1,250,649	$	226,090	$	2,005,998	$	80,218	$	3,562,955
Special Mention	27,689		136		26,119		1,453		55,397
Substandard	20,536		1,743		87,967		125		110,371
Doubtful	0		0		0		0		0
Total	$	1,298,874	$	227,969	$	2,120,084	$	81,796	$	3,728,723



(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other		Total
Performing	$	486,466	$	43,458	$	450,733	$	37,886	$	1,018,543
Nonperforming	10,386		340		5,545		0		16,271
Total	$	496,852	$	43,798	$	456,278	$	37,886	$	1,034,814



	As of December 31, 2014
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Leasing		Total
Pass	$	1,265,116	$	195,787	$	2,027,897	$	75,839	$	3,564,639
Special Mention	30,903		0		25,928		1,728		58,559
Substandard	19,095		1,784		86,842		0		107,721
Doubtful	0		0		0		0		0
Total	$	1,315,114	$	197,571	$	2,140,667	$	77,567	$	3,730,919



(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other		Total
Performing	$	490,314	$	46,806	$	452,281	$	38,475	$	1,027,876
Nonperforming	11,580		514		6,346		0		18,440
Total	$	501,894	$	47,320	$	458,627	$	38,475	$	1,046,316

Loan Delinquency, including Nonaccrual Loans

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



	As of March 31, 2015
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 90 days past due		Total past due		Current		Subtotal		Purchased impaired		Total		> 90 days past due and still accruing
Loans
Commercial	$	2,169	$	511	$	3,660	$	6,340	$	1,277,267	$	1,283,607	$	15,267	$	1,298,874	$	0
Real estate - construction	0		0		223		223		226,403		226,626		1,343		227,969		0
Real estate - commercial	9,852		1,722		13,838		25,412		1,933,639		1,959,051		161,033		2,120,084		0
Real estate - residential	1,049		151		3,251		4,451		424,523		428,974		67,878		496,852		0
Installment	283		8		121		412		40,860		41,272		2,526		43,798		0
Home equity	410		426		3,202		4,038		451,179		455,217		1,061		456,278		0
Other	274		167		85		526		119,156		119,682		0		119,682		85
Total	$	14,037	$	2,985	$	24,380	$	41,402	$	4,473,027	$	4,514,429	$	249,108	$	4,763,537	$	85



	As of December 31, 2014
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 90 days past due		Total past due		Current		Subtotal		Purchased impaired		Total		> 90 days past due and still accruing
Loans
Commercial	$	1,002	$	3,647	$	2,110	$	6,759	$	1,290,975	$	1,297,734	$	17,380	$	1,315,114	$	0
Real estate - construction	276		0		223		499		195,773		196,272		1,299		197,571		0
Real estate - commercial	8,356		838		13,952		23,146		1,944,207		1,967,353		173,314		2,140,667		0
Real estate - residential	1,198		344		4,224		5,766		426,908		432,674		69,220		501,894		0
Installment	133		17		272		422		44,235		44,657		2,663		47,320		0
Home equity	697		466		4,079		5,242		452,357		457,599		1,028		458,627		0
Other	1,133		128		216		1,477		114,565		116,042		0		116,042		216
Total	$	12,795	$	5,440	$	25,076	$	43,311	$	4,469,020	$	4,512,331	$	264,904	$	4,777,235	$	216

Loans Restructured During Period

The following tables provide information on loan modifications classified as TDRs during the three months ended March 31, 2015 and 2014:



	Three months ended
	March 31, 2015					March 31, 2014
(Dollars in thousands)	Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance
Commercial	8	$	360	$	359	3	$	73	$	73
Real estate - construction	0	0		0		0	0		0
Real estate - commercial	6	12,914		9,343		6	1,857		1,849
Real estate - residential	0	0		0		9	545		539
Installment	0	0		0		1	3		3
Home equity	0	0		0		8	247		246
Total	14	$	13,274	$	9,702	27	$	2,725	$	2,710

Loans Restructured, Modifications

The following table provides information on how TDRs were modified during the three months ended March 31, 2015 and 2014.



	Three months ended
	March 31,
(Dollars in thousands)	2015		2014
Extended maturities	$	9,481	$	669
Adjusted interest rates	0		293
Combination of rate and maturity changes	62		1,253
Forbearance	0		66
Other ⁽¹⁾	159		429
Total	$	9,702	$	2,710

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

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:



	Three months ended
	March 31, 2015			March 31, 2014
(Dollars in thousands)	Number of loans	Period end balance		Number of loans	Period end balance
Commercial	0	$	0	1	$	143
Real estate - construction	0	0		0	0
Real estate - commercial	3	967		0	0
Real estate - residential	1	73		0	0
Installment	0	0		1	1
Home equity	0	0		1	24
Total	4	$	1,040	3	$	168

Nonaccrual, Restructured and Impaired Loans

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



(Dollars in thousands)	March 31, 2015		December 31, 2014
Impaired loans
Nonaccrual loans⁽¹⁾
Commercial	$	7,376	$	6,627
Real estate-construction	223		223
Real estate-commercial	30,180		27,969
Real estate-residential	6,100		7,241
Installment	278		451
Home equity	4,996		5,958
Nonaccrual loans ⁽¹⁾	49,153		48,469
Accruing troubled debt restructurings	15,429		15,928
Total impaired loans	$	64,582	$	64,397

(1) Nonaccrual loans include nonaccrual TDRs of $20.3 million and $12.3 million as of March 31, 2015 and December 31, 2014, respectively.



	Three months ended
	March 31,
(Dollars in thousands)	2015		2014
Interest income effect on impaired loans
Gross amount of interest that would have been recorded under original terms	$	967	$	879
Interest included in income
Nonaccrual loans	171		84
Troubled debt restructurings	132		109
Total interest included in income	303		193
Net impact on interest income	$	664	$	686

Commitments outstanding to borrowers with nonaccrual loans	$	0	$	29

Investment in Impaired Loans

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



	As of March 31, 2015
(Dollars in thousands)	Current balance		Contractual principal balance		Related allowance		Average current balance		YTD interest income recognized
Loans with no related allowance recorded
Commercial	$	8,649	$	10,841	$	0	$	8,130	$	45
Real estate - construction	223		443		0		223		0
Real estate - commercial	22,729		27,633		0		21,007		108
Real estate - residential	8,597		9,917		0		9,079		47
Installment	340		381		0		427		2
Home equity	5,444		7,768		0		5,845		19
Other	0		0		0		0		0
Total	45,982		56,983		0		44,711		221

Loans with an allowance recorded
Commercial	1,620		2,104		742		2,009		3
Real estate - construction	0		0		0		0		0
Real estate - commercial	15,090		15,564		3,512		15,765		69
Real estate - residential	1,789		1,825		290		1,904		9
Installment	0		0		0		0		0
Home equity	101		101		2		101		1
Other	0		0		0		0		0
Total	18,600		19,594		4,546		19,779		82

Total
Commercial	10,269		12,945		742		10,139		48
Real estate - construction	223		443		0		223		0
Real estate - commercial	37,819		43,197		3,512		36,772		177
Real estate - residential	10,386		11,742		290		10,983		56
Installment	340		381		0		427		2
Home equity	5,545		7,869		2		5,946		20
Other	0		0		0		0		0
Total	$	64,582	$	76,577	$	4,546	$	64,490	$	303



	As of December 31, 2014
(Dollars in thousands)	Current balance		Contractual principal balance		Related allowance		Average current balance		Interest income recognized
Loans with no related allowance recorded
Commercial	$	7,611	$	9,284	$	0	$	7,146	$	146
Real estate - construction	223		443		0		223		0
Real estate - commercial	19,285		23,631		0		15,653		285
Real estate - residential	9,561		10,867		0		9,485		182
Installment	514		577		0		513		8
Home equity	6,246		9,041		0		5,658		85
Other	0		0		0		0		0
Total	43,440		53,843		0		38,678		706

Loans with an allowance recorded
Commercial	2,398		2,605		739		4,234		57
Real estate - construction	0		0		0		0		0
Real estate - commercial	16,439		17,662		4,002		11,471		187
Real estate - residential	2,019		2,080		310		2,088		40
Installment	0		0		0		0		0
Home equity	101		101		2		101		3
Other	0		0		0		0		0
Total	20,957		22,448		5,053		17,894		287

Total
Commercial	10,009		11,889		739		11,380		203
Real estate - construction	223		443		0		223		0
Real estate - commercial	35,724		41,293		4,002		27,124		472
Real estate - residential	11,580		12,947		310		11,573		222
Installment	514		577		0		513		8
Home equity	6,347		9,142		2		5,759		88
Other	0		0		0		0		0
Total	$	64,397	$	76,291	$	5,053	$	56,572	$	993

Changes in Other Real Estate Owned

Changes in OREO were as follows:



	Three months ended
	March 31,
(Dollars in thousands)	2015 ⁽¹⁾		2014 ⁽¹⁾
Balance at beginning of period	$	22,674	$	46,926
Additions
Commercial	2,173		1,564
Residential	1,058		398
Total additions	3,231		1,962
Disposals
Commercial	4,145		11,838
Residential	412		244
Total disposals	4,557		12,082
Valuation adjustment
Commercial	418		930
Residential	24		85
Total valuation adjustment	442		1,015
Balance at end of period	$	20,906	$	35,791

Indemnification Asset Rollforward

Changes in the balance of the FDIC indemnification asset and the related impact to the Consolidated Statements of Income are presented in the table that follows:



	Three months ended
	March 31,
(Dollars in thousands)	2015			2014			Affected Line Item in the Consolidated Statements of Income
Balance at beginning of period	$	22,666		$	45,091
Adjustments not reflected in income
Net FDIC claims (received) / paid	204			(104		)
Adjustments reflected in income
Amortization	(1,195		)	(1,416		)	Interest income, other earning assets
FDIC loss sharing income	(1,046		)	(508		)	Noninterest income, FDIC loss sharing income
Offset to accelerated discount	(232		)	(4,060		)	Noninterest income, accelerated discount on covered loans
Impairment valuation adjustment	0			0			Noninterest expenses, FDIC indemnification impairment
Balance at end of period	$	20,397		$	39,003