XML 25 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
ALLOWANCE FOR LOAN AND LEASE LOSSES
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
ALLOWANCE FOR LOAN AND LEASE LOSSES ALLOWANCE FOR LOAN AND LEASE LOSSES

Loans and leases. Management maintains the ALLL at a level that it considers sufficient to absorb probable incurred loan and lease losses inherent in the portfolio. Management determines the adequacy of the ALLL based on historical loss experience as well as other significant factors such as composition of the portfolio, economic conditions, geographic footprint, the results of periodic internal and external evaluations of delinquent, nonaccrual and classified loans and any other adverse situations that may affect a specific borrower's ability to repay, including the timing of future payments.

The ALLL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or from the liquidation of collateral.

Changes in the allowance for loan and lease losses by loan category were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Three months ended March 31, 2018
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
17,598

 
$
675

 
$
3,577

 
$
20,930

 
$
4,683

 
$
4,935

 
$
307

 
$
1,316

 
$
54,021

Provision for loan and lease losses
 
889

 
(49
)
 
690

 
815

 
114

 
(294
)
 
(49
)
 
187

 
2,303

Loans charged off
 
(885
)
 
0

 
0

 
(2,176
)
 
(96
)
 
(242
)
 
(16
)
 
(254
)
 
(3,669
)
Recoveries
 
436

 
0

 
0

 
752

 
26

 
429

 
48

 
34

 
1,725

Total net charge-offs
 
(449
)
 
0

 
0

 
(1,424
)
 
(70
)
 
187

 
32

 
(220
)
 
(1,944
)
Ending allowance for loan and lease losses
 
$
18,038

 
$
626

 
$
4,267

 
$
20,321

 
$
4,727

 
$
4,828

 
$
290

 
$
1,283

 
$
54,380

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2018
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Ending allowance balance attributable to loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
100

 
$
0

 
$
0

 
$
26

 
$
160

 
$
2

 
$
0

 
$
0

 
$
288

Collectively evaluated for impairment
 
17,938

 
626

 
4,267

 
20,295

 
4,567

 
4,826

 
290

 
1,283

 
54,092

Ending allowance for loan and lease losses
 
$
18,038

 
$
626

 
$
4,267

 
$
20,321

 
$
4,727

 
$
4,828

 
$
290

 
$
1,283

 
$
54,380

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
8,810

 
$
0

 
$
26

 
$
24,736

 
$
7,175

 
$
4,173

 
$
306

 
$
0

 
$
45,226

Collectively evaluated for impairment
 
1,934,931

 
81,617

 
494,639

 
2,519,315

 
461,409

 
479,470

 
38,942

 
46,472

 
6,056,795

Total loans
 
$
1,943,741

 
$
81,617

 
$
494,665

 
$
2,544,051

 
$
468,584

 
$
483,643

 
$
39,248

 
$
46,472

 
$
6,102,021


 
 
Three months ended March 31, 2017
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
19,225

 
$
716

 
$
3,282

 
$
26,540

 
$
3,208

 
$
3,043

 
$
388

 
$
1,559

 
$
57,961

Provision for loan and lease losses
 
(596
)
 
(100
)
 
325

 
(2,566
)
 
2,329

 
805

 
9

 
161

 
367

Loans charged off
 
(1,743
)
 
0

 
0

 
(485
)
 
(61
)
 
(180
)
 
(49
)
 
(232
)
 
(2,750
)
Recoveries
 
262

 
0

 
0

 
256

 
9

 
106

 
71

 
44

 
748

Total net charge-offs
 
(1,481
)
 
0

 
0

 
(229
)
 
(52
)
 
(74
)
 
22

 
(188
)
 
(2,002
)
Ending allowance for loan and lease losses
 
$
17,148

 
$
616

 
$
3,607

 
$
23,745

 
$
5,485

 
$
3,774

 
$
419

 
$
1,532

 
$
56,326

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Ending allowance balance attributable to loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
169

 
$
0

 
$
0

 
$
448

 
$
160

 
$
2

 
$
0

 
$
0

 
$
779

Collectively evaluated for impairment
 
17,429

 
675

 
3,577

 
20,482

 
4,523

 
4,933

 
307

 
1,316

 
53,242

Ending allowance for loan and lease losses
 
$
17,598

 
$
675

 
$
3,577

 
$
20,930

 
$
4,683

 
$
4,935

 
$
307

 
$
1,316

 
$
54,021

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
7,331

 
$
82

 
$
29

 
$
21,542

 
$
7,932

 
$
4,456

 
$
255

 
$
0

 
$
41,627

Collectively evaluated for impairment
 
1,905,412

 
89,265

 
467,701

 
2,468,549

 
463,459

 
489,148

 
41,331

 
46,691

 
5,971,556

Total loans
 
$
1,912,743

 
$
89,347

 
$
467,730

 
$
2,490,091

 
$
471,391

 
$
493,604

 
$
41,586

 
$
46,691

 
$
6,013,183