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

9 Months Ended

Sep. 30, 2011

Non Covered Loans

Loan Delinquency, including Nonaccrual Loans

Loan delinquency, including nonaccrual loans, was as follows:

	As of September 30, 2011
	30 – 59 Days past due		60 – 89 Days past due		> 90 days past due		Total Past due		Current		Total		> 90 days past due and still accruing
Loans
Commercial	$	2,019	$	852	$	10,436	$	13,307	$	809,245	$	822,552	$	0
Real estate - construction	4,000		6,254		12,197		22,451		114,200		136,651		0
Real estate - commercial	4,316		1,569		15,731		21,616		1,180,419		1,202,035		0
Real estate - residential	7,827		1,362		6,757		15,946		284,219		300,165		0
Installment	275		86		207		568		69,466		70,034		0
Home equity	1,112		258		1,765		3,135		359,784		362,919		0
All other	265		163		235		663		42,642		43,305		235
Total	$	19,814	$	10,544	$	47,328	$	77,686	$	2,859,975	$	2,937,661	$	235

	As of December 31, 2010
	30 - 59 days past due		60 - 89 days past due		> 90 days past due		Total past due		Current		Total		> 90 days past due and still accruing
Loans
Commercial	$	2,241	$	1,573	$	11,684	$	15,498	$	784,755	$	800,253	$	0
Real estate - construction	1,754		3,782		8,973		14,509		149,034		163,543		0
Real estate - commercial	3,202		3,979		16,435		23,616		1,116,315		1,139,931		0
Real estate - residential	7,671		1,930		5,127		14,728		254,445		269,173		0
Installment	456		48		120		624		69,087		69,711		0
Home equity	1,260		392		2,166		3,818		337,492		341,310		0
All other	366		176		370		912		31,260		32,172		370
Total	$	16,950	$	11,880	$	44,875	$	73,705	$	2,742,388	$	2,816,093	$	370

Loans Restructured During Period

The following table provides information on loans restructured during the three and nine months ended September 30, 2011.

	September 30, 2011
	Three Months Ended			Nine Months Ended
	Total TDRs			Total TDRs
(Dollars in thousands)	Number of Loans	Pre-Modification Loan Balance	Period End Balance	Number of Loans	Pre-Modification Loan Balance	Period End Balance
Commercial	1	$44	$44	7	$388	$354
Real estate - construction	0	0	0	0	0	0
Real estate - commercial	2	467	206	10	1,431	1,016
Real estate - residential	3	242	245	13	1,295	1,301
Installment	0	0	0	2	114	111
Home equity	0	0	0	1	101	101
Total	6	$753	$495	33	$3,329	$2,883

Loans Restructured, Modifications

The following table provides information on how restructured loans were modified during the three and nine months ended September 30, 2011.

	September 30, 2011(2)
(Dollars in thousands)	Three Months Ended	Nine Months Ended
Extended Maturities	$249	$1,445
Adjusted Interest Rates	114	271
Combination of Rate and Maturity Changes	132	1,056
Other (1)	0	111
Total	$495	$2,883

 __________________________________________

(1) Other includes covenant modifications, forbearance and other concessions or combination of concessions that do not consist of interest rate adjustments 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 tables provide information on restructured loans for which there was a payment default during the period that occurred within twelve months of the loan modification.

	September 30, 2011
	Three Months Ended		Nine Months Ended
(Dollars in thousands)	Number of Loans	Period End Balance	Number of Loans	Period End Balance
Commercial	0	$0	0	$0
Real estate - construction	0	0	0	0
Real estate - commercial	1	112	2	1,031
Real estate - residential	2	255	2	255
Installment	0	0	0	0
Home equity	0	0	0	0
Total	3	$367	4	$1,286

Nonaccrual, Restructured and Impaired Loans

Loans placed in nonaccrual status and restructured loans are considered impaired. The following table provides information on nonaccrual, restructured, and impaired loans:

(Dollars in thousands)	September 30, 2011		December 31, 2010
Principal balance
Nonaccrual loans
Commercial	$	10,792	$	13,729
Real estate-construction	13,844		12,921
Real estate-commercial	26,408		28,342
Real estate-residential	5,507		4,607
Installment	322		150
Home equity	2,277		2,553
Total nonaccrual loans	59,150		62,302
Restructured loans
Accruing	4,712		3,508
Nonaccrual	12,571		14,105
Total restructured loans	17,283		17,613
Total impaired loans	$	76,433	$	79,915

	September 30, 2011
(Dollars in thousands)	Three Months Ended		Nine months ended
Interest income effect
Gross amount of interest that would have been recorded under original terms	$	1,390	$	4,103
Interest included in income
Nonaccrual loans	108		358
Restructured loans	49		215
Total interest included in income	157		573
Net impact on interest income	$	1,233	$	3,530

Investment in Impaired Loans

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

	As of September 30, 2011
(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	$	6,758	$	8,197	$	0	$	7,583	$	44	$	17
Real estate - construction	5,515		8,130		0		5,500		2		1
Real estate - commercial	19,268		25,985		0		19,133		205		73
Real estate - residential	8,464		9,152		0		6,401		51		14
Installment	433		468		0		323		4		2
Home equity	2,277		2,372		0		2,403		7		3
Loans with an allowance recorded:
Commercial	4,388		6,148		2,820		3,571		0		0
Real estate - construction	14,576		18,110		4,615		14,389		88		0
Real estate - commercial	12,288		18,371		3,809		14,475		143		38
Real estate - residential	2,365		2,371		270		3,864		26		9
Installment	0		0		0		19		1		0
Home equity	101		101		2		76		2		0
Total:
Commercial	11,146		14,345		2,820		11,154		44		17
Real estate - construction	20,091		26,240		4,615		19,889		90		1
Real estate - commercial	31,556		44,356		3,809		33,608		348		111
Real estate - residential	10,829		11,523		270		10,265		77		23
Installment	433		468		0		342		5		2
Home equity	2,378		2,473		2		2,479		9		3
Total	$	76,433	$	99,405	$	11,516	$	77,737	$	573	$	157

	As of December 31, 2010
(Dollars in thousands)	Current Balance		Contractual Principal Balance		Related Allowance		Average Current Balance		Interest Income Recognized
Loans with no related allowance recorded:
Commercial	$	9,375	$	12,008	$	0	$	7,432	$	228
Real estate - construction	4,925		8,458		0		9,935		98
Real estate - commercial	17,431		21,660		0		14,113		804
Real estate - residential	5,854		6,447		0		6,611		84
Installment	150		179		0		336		6
Home equity	2,553		3,345		0		2,188		74
Loans with an allowance recorded:
Commercial	4,354		6,090		2,017		10,423		77
Real estate - construction	14,407		18,261		3,716		11,063		378
Real estate - commercial	16,693		19,799		4,347		13,391		392
Real estate - residential	4,173		4,264		336		2,727		152
Total:
Commercial	13,729		18,098		2,017		17,855		305
Real estate - construction	19,332		26,719		3,716		20,998		476
Real estate - commercial	34,124		41,459		4,347		27,504		1,196
Real estate - residential	10,027		10,711		336		9,338		236
Installment	150		179		0		336		6
Home equity	2,553		3,345		0		2,188		74
Total	$	79,915	$	100,511	$	10,416	$	78,219	$	2,293

Commercial and Consumer Credit Exposure by Risk Attribute

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

	As of September 30, 2011
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial
Pass	$	763,262	$	107,475	$	1,062,751
Special Mention	33,836		1,698		45,032
Substandard	25,263		27,478		94,252
Doubtful	191		0		0
Total	$	822,552	$	136,651	$	1,202,035

(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other
Performing	$	292,695	$	69,601	$	360,642	$	43,305
Nonperforming	7,470		433		2,277		0
Total	$	300,165	$	70,034	$	362,919	$	43,305

	As of December 31, 2010
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial
Pass	$	731,932	$	115,988	$	979,023
Special Mention	36,453		4,829		63,618
Substandard	31,557		42,726		97,290
Doubtful	311		0		0
Total	$	800,253	$	163,543	$	1,139,931

(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other
Performing	$	262,654	$	69,561	$	338,757	$	32,172
Nonperforming	6,519		150		2,553		0
Total	$	269,173	$	69,711	$	341,310	$	32,172

Changes in Other Real Estate Owned

Changes in other real estate owned were as follows:

	Nine Months Ended		Full Year
(Dollars in thousands)	September 30, 2011		December 31, 2010
Balance at beginning of period	$	17,907	$	4,145
Additions
Commercial	1,328		17,520
Residential	2,609		1,130
Total additions	3,937		18,650
Disposals
Commercial	3,909		2,315
Residential	2,345		1,674
Total disposals	6,254		3,989
Write-downs
Commercial	3,341		727
Residential	246		172
Total write-downs	3,587		899
Balance at end of period	$	12,003	$	17,907