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LOANS (covered) (Tables) (Covered Loans)
 9 Months Ended
Sep. 30, 2013
Covered Loans
  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Carrying Value of Purchased Impaired and Nonimpaired Loans
The following table reflects the carrying value of all covered purchased impaired and nonimpaired covered loans:
 
 
September 30, 2013
 
December 31, 2012
(Dollars in thousands)
 
Loans
accounted
for under
FASB ASC
Topic 310-30
 
Loans
excluded
from FASB
ASC Topic
310-30
 
Total
purchased
loans
 
Loans
accounted
for under
FASB ASC
Topic 310-30
 
Loans
excluded
from FASB
ASC Topic
310-30
 
Total
purchased
loans
Commercial
 
$
51,077

 
$
1,199

 
$
52,276

 
$
94,775

 
$
7,351

 
$
102,126

Real estate - construction
 
8,692

 
0

 
8,692

 
10,631

 
0

 
10,631

Real estate - commercial
 
306,345

 
6,453

 
312,798

 
458,066

 
7,489

 
465,555

Real estate - residential
 
84,418

 
0

 
84,418

 
100,694

 
0

 
100,694

Installment
 
5,552

 
583

 
6,135

 
7,911

 
763

 
8,674

Home equity
 
1,009

 
50,683

 
51,692

 
2,080

 
55,378

 
57,458

Other covered loans
 
0

 
2,513

 
2,513

 
0

 
2,978

 
2,978

Total covered loans
 
$
457,093

 
$
61,431

 
$
518,524

 
$
674,157

 
$
73,959

 
$
748,116
Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans
Changes in the carrying amount of accretable difference for covered purchased impaired loans were as follows:
 
 
Three Months Ended
 
Nine months ended
 
 
September 30,
 
September 30,
(Dollars in thousands)
 
2013
 
2012
 
2013
 
2012
Balance at beginning of period
 
$
173,920

 
$
283,296

 
$
224,694

 
$
344,410

Reclassification (to)/from nonaccretable difference
 
(4,979
)
 
2,338

 
(5,687
)
 
25,780

Accretion
 
(13,772
)
 
(21,730
)
 
(46,971
)
 
(71,674
)
Other net activity (1)
 
(8,347
)
 
(11,749
)
 
(25,214
)
 
(46,361
)
Balance at end of period
 
$
146,822

 
$
252,155

 
$
146,822

 
$
252,155

 (1) Includes the impact of loan repayments and charge-offs
Commercial and Consumer Credit Exposure by Risk Attribute
Covered commercial and consumer credit exposure by risk attribute was as follows:
 
 
As of September 30, 2013
 
 
 
 
Real Estate
 
 
(Dollars in thousands)
 
Commercial
 
Construction
 
Commercial
 
Total
Pass
 
$
27,580

 
$
1,714

 
$
175,085

 
$
204,379

Special Mention
 
7,933

 
0

 
41,478

 
49,411

Substandard
 
15,973

 
6,978

 
96,235

 
119,186

Doubtful
 
790

 
0

 
0

 
790

Total
 
$
52,276

 
$
8,692


$
312,798

 
$
373,766


(Dollars in thousands)
 
Real estate
residential
 
Installment
 
Home equity
 
Other
 
Total
Performing
 
$
84,418

 
$
6,135

 
$
49,680

 
$
2,507

 
$
142,740

Nonperforming
 
0

 
0

 
2,012

 
6

 
2,018

Total
 
$
84,418

 
$
6,135

 
$
51,692

 
$
2,513

 
$
144,758


 
 
As of December 31, 2012
 
 
 
 
Real Estate
 
 
(Dollars in thousands)
 
Commercial
 
Construction
 
Commercial
 
Total
Pass
 
$
48,213

 
$
2,304

 
$
213,143

 
$
263,660

Special Mention
 
16,293

 
7

 
70,894

 
87,194

Substandard
 
35,596

 
8,320

 
181,345

 
225,261

Doubtful
 
2,024

 
0

 
173

 
2,197

Total
 
$
102,126

 
$
10,631

 
$
465,555

 
$
578,312


(Dollars in thousands)
 
Real estate
residential
 
Installment
 
Home
equity
 
Other
 
Total
Performing
 
$
100,694

 
$
8,674

 
$
53,231

 
$
2,967

 
$
165,566

Nonperforming
 
0

 
0

 
4,227

 
11

 
4,238

Total
 
$
100,694

 
$
8,674

 
$
57,458

 
$
2,978

 
$
169,804
Loan Delinquency, including Nonaccrual Loans
Covered loan delinquency, excluding loans accounted for under FASB ASC Topic 310-30, was as follows:

 
As of September 30, 2013
(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
$
59

 
$
136

 
$
379

 
$
574

 
$
625

 
$
1,199

 
$
0

Real estate - commercial
59

 
5

 
1,809

 
1,873

 
4,580

 
6,453

 
0

Installment
6

 
0

 
0

 
6

 
577

 
583

 
0

Home equity
722

 
459

 
1,052

 
2,233

 
48,450

 
50,683

 
0

All other
3

 
0

 
49

 
52

 
2,461

 
2,513

 
43

Total
$
849

 
$
600

 
$
3,289

 
$
4,738

 
$
56,693

 
$
61,431

 
$
43


 
As of December 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
$
351

 
$
148

 
$
3,781

 
$
4,280

 
$
3,071

 
$
7,351

 
$
0

Real estate - commercial
138

 
1,149

 
2,201

 
3,488

 
4,001

 
7,489

 
0

Installment
0

 
0

 
0

 
0

 
763

 
763

 
0

Home equity
286

 
296

 
3,697

 
4,279

 
51,099

 
55,378

 
0

All other
19

 
26

 
42

 
87

 
2,891

 
2,978

 
31

Total
$
794

 
$
1,619

 
$
9,721

 
$
12,134

 
$
61,825

 
$
73,959

 
$
31
Covered Nonaccrual Loans
Information on covered nonaccrual loans, TDRs and impaired loans was as follows:
(Dollars in thousands)
 
September 30, 2013
 
December 31, 2012
Impaired loans
 
 
 
 
Nonaccrual loans
 
 
 
 
Commercial
 
$
438

 
$
4,498

Real estate-commercial
 
1,899

 
2,986

Installment
 
0

 
0

Home equity
 
2,012

 
4,227

All other
 
6

 
11

Nonaccrual loans
 
4,355

 
11,722

Accruing troubled debt restructurings
 
351

 
0

Total impaired loans
 
$
4,706

 
$
11,722


 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
(Dollars in thousands)
 
2013
 
2012
 
2013
 
2012
Interest income effect on impaired loans
 
 
 
 
 
 
 
 
Gross amount of interest that would have been recorded under original terms
 
$
81

 
$
146

 
$
334

 
$
504

Interest included in income
 
 
 
 
 
 
 
 
Nonaccrual loans
 
6

 
9

 
20

 
70

Troubled debt restructurings
 
3

 
0

 
6

 
0

Total interest included in income
 
9

 
9

 
26

 
70

Net impact on interest income
 
$
72

 
$
137

 
$
308

 
$
434
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 September 30, 2013
(Dollars in thousands)
 
Current Balance
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
YTD Interest
Income
Recognized
 
Quarterly Interest
Income
Recognized
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
789

 
$
1,045

 
$
0

 
$
2,072

 
$
11

 
$
3

Real estate - commercial
 
1,899

 
3,342

 
0

 
1,895

 
3

 
1

Installment
 
0

 
0

 
0

 
2

 
0

 
0

Home equity
 
2,012

 
2,739

 
0

 
2,790

 
12

 
5

All other
 
6

 
6

 
0

 
10

 
0

 
0

Total
 
$
4,706

 
$
7,132

 
$
0

 
$
6,769

 
$
26

 
$
9


 
 
As of December 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
 
$
4,498

 
$
4,660

 
$
0

 
$
4,526

 
$
62

Real estate - commercial
 
2,986

 
3,216

 
0

 
2,153

 
18

Home equity
 
4,227

 
5,260

 
0

 
2,006

 
5

All other
 
11

 
11

 
0

 
13

 
0

Total
 
$
11,722

 
$
13,147

 
$
0

 
$
8,698

 
$
85
Changes in Other Real Estate Owned
Changes in covered OREO were as follows:

 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
(Dollars in thousands)
 
2013
 
2012
 
2013
 
2012
Balance at beginning of period
 
$
22,475

 
$
25,408

 
$
28,862

 
$
44,818

Additions
 
 
 
 
 
 
 
 
Commercial
 
8,572

 
8,578

 
21,063

 
13,677

Residential
 
95

 
737

 
472

 
3,423

Total additions
 
8,667

 
9,315

 
21,535

 
17,100

Disposals
 
 

 
 

 
 
 
 
Commercial
 
2,865

 
5,858

 
19,513

 
24,417

Residential
 
76

 
0

 
890

 
2,354

Total disposals
 
2,941

 
5,858

 
20,403

 
26,771

Write-downs
 
 

 
 

 
 
 
 
Commercial
 
451

 
249

 
2,133

 
5,665

Residential
 
0

 
0

 
111

 
866

Total write-downs
 
451

 
249

 
2,244

 
6,531

Balance at end of period
 
$
27,750

 
$
28,616

 
$
27,750

 
$
28,616