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LOANS AND LEASES (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Commercial and Consumer Credit Exposure by Risk Attribute Commercial and consumer credit exposure by risk attribute was as follows:
 
 
As of June 30, 2018
 
 
Commercial
 
Real Estate
 
Lease
 
 
(Dollars in thousands)
 
& industrial
 
Construction
 
Commercial
 
financing
 
Total
Pass
 
$
2,367,649

 
$
543,479

 
$
3,794,902

 
$
94,763

 
$
6,800,793

Special Mention
 
24,261

 
11,947

 
29,399

 
0

 
65,607

Substandard
 
48,686

 
42

 
64,692

 
1,435

 
114,855

Doubtful
 
0

 
0

 
0

 
0

 
0

Total
 
$
2,440,596

 
$
555,468

 
$
3,888,993

 
$
96,198

 
$
6,981,255


(Dollars in thousands)
 
Residential
real estate
 
Home equity
 
Installment
 
Credit card
 
Total
Performing
 
$
905,649

 
$
828,558

 
$
100,422

 
$
48,665

 
$
1,883,294

Nonperforming
 
13,255

 
6,473

 
304

 
0

 
20,032

Total
 
$
918,904

 
$
835,031

 
$
100,726

 
$
48,665

 
$
1,903,326


 
 
As of December 31, 2017
 
 
Commercial
 
Real Estate
 
Lease
 
 
(Dollars in thousands)
 
& industrial
 
Construction
 
Commercial
 
financing
 
Total
Pass
 
$
1,882,464

 
$
467,687

 
$
2,446,999

 
$
88,078

 
$
4,885,228

Special Mention
 
6,226

 
0

 
4,436

 
0

 
10,662

Substandard
 
24,053

 
43

 
38,656

 
1,269

 
64,021

Doubtful
 
0

 
0

 
0

 
0

 
0

Total
 
$
1,912,743

 
$
467,730

 
$
2,490,091

 
$
89,347

 
$
4,959,911


(Dollars in thousands)
 
Residential
real estate
 
Home equity
 
Installment
 
Credit card
 
Total
Performing
 
$
463,459

 
$
489,148

 
$
41,331

 
$
46,691

 
$
1,040,629

Nonperforming
 
7,932

 
4,456

 
255

 
0

 
12,643

Total
 
$
471,391

 
$
493,604

 
$
41,586

 
$
46,691

 
$
1,053,272
Loan Delinquency, including Nonaccrual Loans Loan delinquency, including loans classified as nonaccrual, was as follows:
 
 
As of June 30, 2018
(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 & industrial
 
$
1,885

 
$
389

 
$
2,814

 
$
5,088

 
$
2,429,204

 
$
2,434,292

 
$
6,304

 
$
2,440,596

 
$
0

Lease financing
 
0

 
0

 
0

 
0

 
96,198

 
96,198

 
0

 
96,198

 
0

Construction real estate
 
447

 
0

 
0

 
447

 
554,754

 
555,201

 
267

 
555,468

 
0

Commercial real estate
 
3,291

 
1,829

 
15,999

 
21,119

 
3,803,534

 
3,824,653

 
64,340

 
3,888,993

 
16

Residential real estate
 
1,962

 
601

 
2,945

 
5,508

 
872,404

 
877,912

 
40,992

 
918,904

 
0

Home equity
 
3,834

 
750

 
3,443

 
8,027

 
822,359

 
830,386

 
4,645

 
835,031

 
0

Installment
 
165

 
22

 
263

 
450

 
99,669

 
100,119

 
607

 
100,726

 
0

Credit card
 
427

 
216

 
311

 
954

 
47,711

 
48,665

 
0

 
48,665

 
311

Total
 
$
12,011

 
$
3,807

 
$
25,775

 
$
41,593

 
$
8,725,833

 
$
8,767,426

 
$
117,155

 
$
8,884,581

 
$
327


 
 
As of December 31, 2017
(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 & industrial
 
$
755

 
$
1,657

 
$
5,078

 
$
7,490

 
$
1,901,821

 
$
1,909,311

 
$
3,432

 
$
1,912,743

 
$
0

Lease financing
 
485

 
0

 
0

 
485

 
88,862

 
89,347

 
0

 
89,347

 
0

Construction real estate
 
234

 
0

 
0

 
234

 
467,216

 
467,450

 
280

 
467,730

 
0

Commercial real estate
 
1,716

 
201

 
8,777

 
10,694

 
2,419,969

 
2,430,663

 
59,428

 
2,490,091

 
0

Residential real estate
 
526

 
811

 
1,992

 
3,329

 
430,500

 
433,829

 
37,562

 
471,391

 
0

Home equity
 
2,716

 
394

 
1,753

 
4,863

 
485,127

 
489,990

 
3,614

 
493,604

 
0

Installment
 
179

 
29

 
205

 
413

 
40,529

 
40,942

 
644

 
41,586

 
0

Credit card
 
285

 
87

 
62

 
434

 
46,257

 
46,691

 
0

 
46,691

 
62

Total
 
$
6,896

 
$
3,179

 
$
17,867

 
$
27,942

 
$
5,880,281

 
$
5,908,223

 
$
104,960

 
$
6,013,183

 
$
62
Loans Restructured During Period The following tables provide information on loan modifications classified as TDRs during the three and six months ended June 30, 2018 and 2017:
 
 
Three months ended
 
 
June 30, 2018
 
June 30, 2017
(Dollars in thousands)
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
Commercial & industrial
 
8

 
$
6,221

 
$
6,183

 
4

 
$
2,177

 
$
2,183

Construction real estate
 
0

 
0

 
0

 
0

 
0

 
0

Commercial real estate
 
4

 
2,047

 
2,016

 
6

 
1,506

 
1,449

Residential real estate
 
1

 
201

 
201

 
0

 
0

 
0

Home equity
 
0

 
0

 
0

 
0

 
0

 
0

Installment
 
0

 
0

 
0

 
0

 
0

 
0

Total
 
13

 
$
8,469

 
$
8,400

 
10

 
$
3,683

 
$
3,632

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended
 
 
June 30, 2018
 
June 30, 2017
(Dollars in thousands)
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
Commercial & industrial
 
12

 
$
7,149

 
$
7,096

 
6

 
$
5,679

 
$
5,624

Construction real estate
 
0

 
0

 
0

 
0

 
0

 
0

Commercial real estate
 
6

 
2,119

 
2,088

 
6

 
1,506

 
1,449

Residential real estate
 
3

 
294

 
294

 
0

 
0

 
0

Home equity
 
0

 
0

 
0

 
0

 
0

 
0

Installment
 
0

 
0

 
0

 
0

 
0

 
0

Total
 
21

 
$
9,562

 
$
9,478

 
12

 
$
7,185

 
$
7,073
Loans Restructured, Modifications The following table provides information on how TDRs were modified during the three and six months ended June 30, 2018 and 2017:
 
 
Three months ended
 
Six months ended
 
 
June 30,
 
June 30,
(Dollars in thousands)
 
2018
 
2017
 
2018
 
2017
Extended maturities
 
$
2,000

 
$
2,587

 
$
2,888

 
$
3,261

Adjusted interest rates
 
0
 
0
 
52

 
2,767

Combination of rate and maturity changes
 
0
 
180
 
0

 
180

Forbearance
 
6,199
 
827
 
6,199

 
827

Other (1)
 
201
 
38
 
339

 
38

Total
 
$
8,400

 
$
3,632

 
$
9,478

 
$
7,073

(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions
Nonaccrual, Restructured and Impaired Loans The following table provides information on impaired loans, excluding purchased impaired loans:
(Dollars in thousands)
 
June 30, 2018
 
December 31, 2017
Impaired loans
 
 
 
 
Nonaccrual loans (1)
 
 
 
 
Commercial & industrial
 
$
3,448

 
$
5,229

Lease financing
 
0

 
82

Construction real estate
 
24

 
29

Commercial real estate
 
21,593

 
10,616

Residential real estate
 
9,278

 
4,140

Home equity
 
5,820

 
3,743

Installment
 
299

 
243

Nonaccrual loans
 
40,462

 
24,082

Accruing troubled debt restructurings
 
21,839

 
17,545

Total impaired loans
 
$
62,301

 
$
41,627

(1) Nonaccrual loans include nonaccrual TDRs of $5.9 million and $6.4 million as of June 30, 2018 and December 31, 2017, respectively.

 
 
Three months ended
 
Six months ended
 
 
June 30,
 
June 30,
(Dollars in thousands)
 
2018
 
2017
 
2018
 
2017
Interest income effect on impaired loans
 
 
 
 
 
 
 
 
Gross amount of interest that would have been recorded under original terms
 
$
1,132

 
$
1,158

 
$
1,934

 
$
1,974

Interest included in income
 
 
 
 
 
 
 
 
Nonaccrual loans
 
146

 
163

 
226

 
305

Troubled debt restructurings
 
189

 
169

 
313

 
395

Total interest included in income
 
335

 
332

 
539

 
700

Net impact on interest income
 
$
797

 
$
826

 
$
1,395

 
$
1,274
Investment in Impaired Loans First Financial's investment in impaired loans was as follows:
 
 
As of June 30, 2018
 
As of December 31, 2017
(Dollars in thousands)
 
Current balance
 
Contractual
principal
balance
 
Related
allowance
 
Current balance
 
Contractual
principal
balance
 
Related
allowance
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
10,856

 
$
14,647

 
$
0

 
$
7,162

 
$
8,460

 
$
0

Lease financing
 
0

 
0

 
0

 
82

 
82

 
0

Construction real estate
 
24

 
57

 
0

 
29

 
60

 
0

Commercial real estate
 
30,655

 
36,421

 
0

 
18,423

 
20,837

 
0

Residential real estate
 
12,216

 
14,383

 
0

 
6,876

 
8,145

 
0

Home equity
 
6,372

 
7,311

 
0

 
4,356

 
5,399

 
0

Installment
 
304

 
603

 
0

 
255

 
422

 
0

Total
 
60,427

 
73,422

 
0

 
37,183

 
43,405

 
0

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans with an allowance recorded
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
 
379

 
379

 
179

 
169

 
169

 
169

Lease financing
 
0

 
0

 
0

 
0

 
0

 
0

Construction real estate
 
0

 
0

 
0

 
0

 
0

 
0

Commercial real estate
 
356

 
356

 
25

 
3,119

 
3,120

 
448

Residential real estate
 
1,039

 
1,039

 
160

 
1,056

 
1,063

 
160

Home equity
 
100

 
100

 
2

 
100

 
100

 
2

Installment
 
0

 
0

 
0

 
0

 
0

 
0

Total
 
1,874

 
1,874

 
366

 
4,444

 
4,452

 
779

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
 

 
 

 
 
 
 
 
 
Commercial & industrial
 
11,235

 
15,026

 
179

 
7,331

 
8,629

 
169

Lease financing
 
0

 
0

 
0

 
82

 
82

 
0

Construction real estate
 
24

 
57

 
0

 
29

 
60

 
0

Commercial real estate
 
31,011

 
36,777

 
25

 
21,542

 
23,957

 
448

Residential real estate
 
13,255

 
15,422

 
160

 
7,932

 
9,208

 
160

Home equity
 
6,472

 
7,411

 
2

 
4,456

 
5,499

 
2

Installment
 
304

 
603

 
0

 
255

 
422

 
0

Total
 
$
62,301

 
$
75,296

 
$
366

 
$
41,627

 
$
47,857

 
$
779


First Financial's average impaired loans by class and interest income recognized by class was as follows:
 
 
Three months ended
 
 
June 30, 2018
 
June 30, 2017
(Dollars in thousands)
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
9,714

 
$
73

 
$
17,198

 
$
87

Lease financing
 
0

 
0

 
98

 
1

Construction real estate
 
25

 
1

 
1,075

 
0

Commercial real estate
 
27,516

 
140

 
25,465

 
144

Residential real estate
 
9,173

 
76

 
7,605

 
46

Home equity
 
5,222

 
27

 
3,926

 
27

Installment
 
305

 
1

 
357

 
1

Total
 
51,955

 
318

 
55,724

 
306

 
 
 
 
 
 
 
 
 
Loans with an allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
309

 
6

 
2,301

 
11

Lease financing
 
0

 
0

 
0

 
0

Construction real estate
 
0

 
0

 
0

 
0

Commercial real estate
 
358

 
3

 
658

 
8

Residential real estate
 
1,042

 
7

 
1,126

 
6

Home equity
 
101

 
1

 
101

 
1

Installment
 
0

 
0

 
0

 
0

Total
 
1,810

 
17

 
4,186

 
26

 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
Commercial & industrial
 
10,023

 
79

 
19,499

 
98

Lease financing
 
0

 
0

 
98

 
1

Construction real estate
 
25

 
1

 
1,075

 
0

Commercial real estate
 
27,874

 
143

 
26,123

 
152

Residential real estate
 
10,215

 
83

 
8,731

 
52

Home equity
 
5,323

 
28

 
4,027

 
28

Installment
 
305

 
1

 
357

 
1

Total
 
$
53,765

 
$
335

 
$
59,910

 
$
332


 
 
Six months ended
 
 
June 30, 2018
 
June 30, 2017
(Dollars in thousands)
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
8,863

 
$
99

 
$
15,607

 
$
196

Lease financing
 
27

 
0

 
149

 
2

Construction real estate
 
26

 
2

 
538

 
0

Commercial real estate
 
24,485

 
239

 
19,939

 
304

Residential real estate
 
8,407

 
123

 
8,032

 
92

Home equity
 
4,933

 
47

 
4,111

 
51

Installment
 
288

 
1

 
413

 
3

Total
 
47,029

 
511

 
48,789

 
648

 
 
 
 
 
 
 
 
 
Loans with an allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
262

 
6

 
1,094

 
24

Lease financing
 
0

 
0

 
0

 
0

Construction real estate
 
0

 
0

 
0

 
0

Commercial real estate
 
1,278

 
6

 
4,374

 
13

Residential real estate
 
1,047

 
14

 
1,185

 
13

Home equity
 
100

 
2

 
101

 
2

Installment
 
0

 
0

 
0

 
0

Total
 
2,687

 
28

 
6,754

 
52

 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
Commercial & industrial
 
9,125

 
105

 
16,701

 
220

Lease financing
 
27

 
0

 
149

 
2

Construction real estate
 
26

 
2

 
538

 
0

Commercial real estate
 
25,763

 
245

 
24,313

 
317

Residential real estate
 
9,454

 
137

 
9,217

 
105

Home equity
 
5,033

 
49

 
4,212

 
53

Installment
 
288

 
1

 
413

 
3

Total
 
$
49,716

 
$
539

 
$
55,543

 
$
700
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)
 
2018
 
2017
 
2018
 
2017
Balance at beginning of period
 
$
1,065

 
$
5,300

 
$
2,781

 
$
6,284

Additions
 
 
 
 
 
 
 
 
Commercial & industrial
 
1,020

 
50

 
1,190

 
172

Residential real estate
 
525

 
1,913

 
984

 
2,078

Total additions
 
1,545

 
1,963

 
2,174

 
2,250

Disposals
 
 

 
 
 
 

 
 
Commercial & industrial
 
(326
)
 
(682
)
 
(2,430
)
 
(1,607
)
Residential real estate
 
(292
)
 
(448
)
 
(410
)
 
(685
)
Total disposals
 
(618
)
 
(1,130
)
 
(2,840
)
 
(2,292
)
Valuation adjustment
 
 

 
 
 
 

 
 
Commercial & industrial
 
0

 
(116
)
 
(97
)
 
(162
)
Residential real estate
 
(139
)
 
(56
)
 
(165
)
 
(119
)
Total valuation adjustment
 
(139
)
 
(172
)
 
(262
)
 
(281
)
Balance at end of period
 
$
1,853

 
$
5,961

 
$
1,853

 
$
5,961