LOANS (covered) (Tables) (Covered Loans)

3 Months Ended

Mar. 31, 2012

Carrying Value of Purchased Impaired and Nonimpaired Loans

The following table reflects the carrying value of all purchased impaired and nonimpaired covered loans:



	March 31, 2012						December 31, 2011
(Dollars in thousands)	Loans Accounted For Under FASB ASC Topic 310-30		Loans excluded from FASB ASC Topic 310-30 ⁽¹⁾		Total Purchased Loans		Loans Accounted For Under FASB ASC Topic 310-30		Loans Excluded From FASB ASC Topic 310-30 ⁽¹⁾		Total Purchased Loans
Commercial	$	153,771	$	11,162	$	164,933	$	182,625	$	13,267	$	195,892
Real estate - construction	16,727		0		16,727		17,120		0		17,120
Real estate - commercial	599,897		9,244		609,141		627,257		9,787		637,044
Real estate - residential	115,428		0		115,428		121,117		0		121,117
Installment	11,255		824		12,079		12,123		1,053		13,176
Home equity	3,731		61,093		64,824		4,146		60,832		64,978
Other covered loans	0		3,487		3,487		0		3,917		3,917
Total covered loans	$	900,809	$	85,810	$	986,619	$	964,388	$	88,856	$	1,053,244

(1) Includes loans with revolving privileges which are scoped out of FASB ASC Topic 310-30 and certain loans which First Financial elected to treat under the cost recovery method of accounting.

Covered Nonaccrual Loans

Information as to covered nonaccrual loans, excluding loans accounted for under FASB ASC Topic 310-30 was as follows:



(Dollars in thousands)	March 31, 2012		December 31, 2011
Impaired loans
Nonaccrual loans
Commercial	$	5,283	$	7,203
Real estate-commercial	2,476		2,192
Home equity	646		1,747
All other	15		18
Total	$	8,420	$	11,160



	Three Months Ended March 31,
(Dollars in thousands)	2012		2011
Interest income effect on impaired loans
Gross amount of interest that would have been recorded under original terms	$	208	$	261
Interest included in income	48		27
Net impact on interest income	$	160	$	234

Investment in Impaired Loans

First Financial’s investment in covered impaired loans, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:



	As of March 31, 2012
(Dollars in thousands)	Current Balance		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Loans with no related allowance recorded:
Commercial	$	5,283	$	8,143	$	0	$	6,243	$	43
Real estate - commercial	2,476		4,403		0		2,334		4
Home equity	646		1,122		0		1,197		1
All other	15		15		0		17		0
Total	$	8,420	$	13,683	$	0	$	9,791	$	48



	As of December 31, 2011
(Dollars in thousands)	Current Balance		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Loans with no related allowance recorded:
Commercial	$	7,203	$	10,152	$	0	$	9,873	$	47
Real estate - commercial	2,192		4,002		0		2,504		5
Installment	1,747		2,878		0		1,559		6
Home equity	18		18		0		9		0
Total	$	11,160	$	17,050	$	0	$	13,945	$	58

Commercial and Consumer Credit Exposure by Risk Attribute

Covered commercial and consumer credit exposure by risk attribute was as follows:



	As of March 31, 2012
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Total
Pass	$	98,021	$	2,469	$	311,978	$	412,468
Special Mention	16,137		3,524		71,937		91,598
Substandard	46,711		10,734		224,954		282,399
Doubtful	4,064		0		272		4,336
Total	$	164,933	$	16,727	$	609,141	$	790,801



(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other		Total
Performing	$	115,428	$	12,079	$	64,178	$	3,472	$	195,157
Nonperforming	0		0		646		15		661
Total	$	115,428	$	12,079	$	64,824	$	3,487	$	195,818



	December 31, 2011
			Real Estate
(Dollars in thousands)	Commercial		Construction		Commercial		Total
Pass	$	113,201	$	2,506	$	340,889	$	456,596
Special Mention	22,468		3,597		63,880		89,945
Substandard	52,103		11,017		230,870		293,990
Doubtful	8,120		0		1,405		9,525
Total	$	195,892	$	17,120	$	637,044	$	850,056



(Dollars in thousands)	Real Estate Residential		Installment		Home Equity		Other		Total
Performing	$	121,117	$	13,176	$	63,231	$	3,899	$	201,423
Nonperforming	0		0		1,747		18		1,765
Total	$	121,117	$	13,176	$	64,978	$	3,917	$	203,188

Changes in Other Real Estate Owned

Changes in covered OREO were as follows:



	Three months ended March 31,
(Dollars in thousands)	2012		2011
Balance at beginning of period	$	44,818	$	35,257
Additions
Commercial	2,750		11,197
Residential	2,624		881
Total additions	5,374		12,078
Disposals
Commercial	5,005		9,266
Residential	543		2,336
Total disposals	5,548		11,602
Write-downs
Commercial	3,084		2,085
Residential	71		0
Total write-downs	3,155		2,085
Balance at end of period	$	41,489	$	33,648

Loans Excluded from FASB ASC Topic 310-30

Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans

Changes in the carrying amount of accretable yield for loans accounted for under FASB ASC Topic 310-30 were as follows:



	Three Months Ended
	March 31,
(Dollars in thousands)	2012			2011
Balance at beginning of period ⁽¹⁾	$	344,410		$	509,945
Reclassification from non-accretable difference	14,384			21,977
Accretion	(25,919		)	(34,461		)
Other net activity ⁽²⁾	(19,206		)	(36,171		)
Balance at end of period	$	313,669		$	461,290

(1) Excludes loans with revolving privileges which are scoped out of FASB Topic 310-30 and certain loans which First Financial elected to treat under the cost recovery method.

(2) Includes the impact of loan repayments and charge-offs.

Loan Delinquency, including Nonaccrual Loans

Covered loan delinquency, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:



	As of March 31, 2012
(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	$	411	$	23	$	2,935	$	3,369	$	7,793	$	11,162	$	0
Real estate - commercial	207		144		1,801		2,152		7,092		9,244		0
Installment	0		0		0		0		824		824		0
Home equity	827		400		546		1,773		59,320		61,093		0
All other	45		51		16		112		3,375		3,487		1
Total	$	1,490	$	618	$	5,298	$	7,406	$	78,404	$	85,810	$	1



	As of December 31, 2011
(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	$	73	$	294	$	6,490	$	6,857	$	6,410	$	13,267	$	0
Real estate - commercial	184		0		1,870		2,054		7,733		9,787		0
Installment	0		0		0		0		1,053		1,053		0
Home equity	1,344		11		1,679		3,034		57,798		60,832		0
All other	10		6		125		141		3,776		3,917		107
Total	$	1,611	$	311	$	10,164	$	12,086	$	76,770	$	88,856	$	107