LOANS (Tables)

12 Months Ended

Dec. 31, 2016

LOANS - Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans [Abstract]

Commercial and Consumer Credit Exposure by Risk Attribute

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



	As of December 31, 2016
			Real Estate
(Dollars in thousands)	Commercial and industrial		Construction		Commercial		Lease financing		Total
Pass	$	1,725,451	$	398,155	$	2,349,662	$	92,540	$	4,565,808
Special Mention	18,256		1,258		15,584		108		35,206
Substandard	38,241		21		62,331		460		101,053
Doubtful	0		0		0		0		0
Total	$	1,781,948	$	399,434	$	2,427,577	$	93,108	$	4,702,067



	Residential real estate		Home Equity		Installment		Credit card		Total
Performing	$	491,380	$	456,314	$	50,202	$	43,408	$	1,041,304
Nonperforming	9,600		4,074		437		0		14,111
Total	$	500,980	$	460,388	$	50,639	$	43,408	$	1,055,415



	As of December 31, 2015
			Real Estate
(Dollars in thousands)	Commercial and industrial		Construction		Commercial		Lease financing		Total
Pass	$	1,596,415	$	310,806	$	2,179,701	$	93,236	$	4,180,158
Special Mention	27,498		128		19,903		0		47,529
Substandard	39,189		778		58,693		750		99,410
Doubtful	0		0		0		0		0
Total	$	1,663,102	$	311,712	$	2,258,297	$	93,986	$	4,327,097



	Residential real estate		Home equity		Installment		Credit card		Total
Performing	$	503,317	$	461,188	$	41,253	$	41,217	$	1,046,975
Nonperforming	8,994		5,441		253		0		14,688
Total	$	512,311	$	466,629	$	41,506	$	41,217	$	1,061,663

Loan Delinquency, including Nonaccrual Loans

Loan delinquency, including nonaccrual loans, was as follows:



	As of December 31, 2016
(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 and industrial	$	1,257	$	208	$	1,339	$	2,804	$	1,773,939	$	1,776,743	$	5,205	$	1,781,948	$	0
Lease financing	137		0		115		252		92,856		93,108		0		93,108		0
Construction real estate	0		0		0		0		398,877		398,877		557		399,434		0
Commercial real estate	777		134		5,589		6,500		2,339,327		2,345,827		81,750		2,427,577		2,729
Residential real estate	821		37		2,381		3,239		450,631		453,870		47,110		500,980		0
Home equity	195		145		1,776		2,116		456,143		458,259		2,129		460,388		0
Installment	24		1		258		283		49,058		49,341		1,298		50,639		0
Credit card	457		177		142		776		42,632		43,408		0		43,408		142
Total	$	3,668	$	702	$	11,600	$	15,970	$	5,603,463	$	5,619,433	$	138,049	$	5,757,482	$	2,871



	As of December 31, 2015
(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 and industrial	$	2,255	$	2,232	$	1,937	$	6,424	$	1,648,902	$	1,655,326	$	7,776	$	1,663,102	$	0
Lease financing	641		155		122		918		93,068		93,986		0		93,986		0
Construction real estate	0		17		0		17		310,872		310,889		823		311,712		0
Commercial real estate	2,501		913		7,421		10,835		2,124,290		2,135,125		123,172		2,258,297		0
Residential real estate	1,220		239		2,242		3,701		451,907		455,608		56,703		512,311		0
Home equity	696		248		2,830		3,774		461,647		465,421		1,208		466,629		0
Installment	197		111		48		356		39,206		39,562		1,944		41,506		0
Credit card	279		147		108		534		40,683		41,217		0		41,217		108
Total	$	7,789	$	4,062	$	14,708	$	26,559	$	5,170,575	$	5,197,134	$	191,626	$	5,388,760	$	108

Loans Restructured During Period

The following table provides information on loan modifications classified as TDRs during the years ended December 31, 2016, 2015 and 2014:



	Years ended December 31,
	2016					2015					2014
(Dollars in thousands)	Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance
Commercial and industrial	18	$	3,402	$	3,508	33	$	9,035	$	8,203	24	$	5,282	$	4,256
Construction real estate	0	0		0		0	0		0		0	0		0
Commercial real estate	16	5,200		4,752		18	20,249		16,474		16	5,235		3,937
Residential real estate	5	840		787		10	1,292		1,238		31	1,767		1,516
Home equity	5	165		156		25	2,859		2,221		36	1,977		1,036
Installment	3	9		9		10	97		97		8	47		29
Total	47	$	9,616	$	9,212	96	$	33,532	$	28,233	115	$	14,308	$	10,774

Loans Restructured, Modifications

The following table provides information on how TDRs were modified during the years ended December 31, 2016, 2015 and 2014:



	Years Ended December 31,
(Dollars in thousands)	2016		2015		2014
Extended maturities	$	2,571	$	12,883	$	6,961
Adjusted interest rates	0		0		299
Combination of rate and maturity changes	3,046		1,244		991
Forbearance	88		260		373
Other ⁽¹⁾	3,507		13,846		2,150
Total	$	9,212	$	28,233	$	10,774

⁽¹⁾ Other includes covenant modifications and other concessions or combination of concessions that do not consist of interest rate adjustments, forbearance and maturity extensions.

Loan Restructuring, Loans with a Payment Default Within 12 Months of Loan Modification

Nonaccrual, Restructured and Impaired Loans

The following table provides information on impaired loans, excluding purchased impaired loans, as of December 31:



(Dollars in thousands)	2016		2015		2014
Impaired loans
Nonaccrual loans ⁽¹⁾
Commercial and industrial	$	2,419	$	8,405	$	6,627
Lease financing	195		122		0
Construction real estate	0		0		223
Commercial real estate	6,098		9,418		27,969
Residential real estate	5,251		5,027		7,241
Home equity	3,400		4,898		5,958
Installment	367		127		451
Total nonaccrual loans	17,730		27,997		48,469
Accruing troubled debt restructurings	30,240		28,876		15,928
Total impaired loans	$	47,970	$	56,873	$	64,397

Interest income effect
Gross amount of interest that would have been recorded under original terms	$	2,848	$	3,595	$	3,581
Interest included in income
Nonaccrual loans	375		475		537
Troubled debt restructurings	876		682		456
Total interest included in income	1,251		1,157		993
Net impact on interest income	$	1,597	$	2,438	$	2,588

Commitments outstanding to borrowers with nonaccrual loans	$	0	$	1	$	0

⁽¹⁾ Nonaccrual loans include nonaccrual TDRs of $5.1 million, $9.3 million and $12.3 million as of December 31, 2016, 2015 and 2014, respectively.

Investment in Impaired Loans

First Financial's investment in impaired loans, excluding purchased impaired loans, is as follows:



	December 31, 2016						December 31, 2015
(Dollars in thousands)	Current balance		Contractual principal balance		Related allowance		Current balance		Contractual principal balance		Related allowance
Loans with no related allowance recorded
Commercial and industrial	$	12,134	$	12,713	$	0	$	16,418	$	17,398	$	0
Lease financing	195		195		0		122		122		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	12,232		14,632		0		16,301		20,479		0
Residential real estate	8,412		9,648		0		7,447		8,807		0
Home equity	3,973		5,501		0		5,340		7,439		0
Installment	437		603		0		253		276		0
Total	37,383		43,292		0		45,881		54,521		0

Loans with an allowance recorded
Commercial and industrial	1,069		1,071		550		993		1,178		357
Lease financing	0		0		0		0		0		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	8,228		8,277		593		8,351		8,706		979
Residential real estate	1,189		1,189		179		1,547		1,560		235
Home equity	101		101		2		101		101		2
Installment	0		0		0		0		0		0
Total	10,587		10,638		1,324		10,992		11,545		1,573

Total
Commercial and industrial	13,203		13,784		550		17,411		18,576		357
Lease financing	195		195		0		122		122		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	20,460		22,909		593		24,652		29,185		979
Residential real estate	9,601		10,837		179		8,994		10,367		235
Home equity	4,074		5,602		2		5,441		7,540		2
Installment	437		603		0		253		276		0
Total	$	47,970	$	53,930	$	1,324	$	56,873	$	66,066	$	1,573



	Years ended December 31,
	2016				2015				2014
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized		Average balance		Interest income recognized
Loans with no related allowance recorded
Commercial and industrial	$	13,619	$	309	$	10,468	$	258	$	7,146	$	146
Lease financing	150		3		24		0		0		0
Construction real estate	0		0		150		0		223		0
Commercial real estate	14,252		357		19,363		344		15,653		285
Residential real estate	7,752		199		8,143		184		9,485		182
Home equity	4,830		86		5,648		82		5,658		85
Installment	366		7		380		7		513		8
Total	40,969		961		44,176		875		38,678		706

Loans with an allowance recorded
Commercial and industrial	1,098		37		1,409		26		4,234		57
Lease financing	214		8		0		0		0		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	7,792		211		12,928		213		11,471		187
Residential real estate	1,374		30		1,696		40		2,088		40
Home equity	101		4		101		3		101		3
Installment	0		0		0		0		0		0
Total	10,579		290		16,134		282		17,894		287

Total
Commercial and industrial	14,717		346		11,877		284		11,380		203
Lease financing	364		11		24		0		0		0
Construction real estate	0		0		150		0		223		0
Commercial real estate	22,044		568		32,291		557		27,124		472
Residential real estate	9,126		229		9,839		224		11,573		222
Home equity	4,931		90		5,749		85		5,759		88
Installment	366		7		380		7		513		8
Total	$	51,548	$	1,251	$	60,310	$	1,157	$	56,572	$	993

Changes in Other Real Estate Owned

Changes in OREO were as follows:



	Years ended December 31,
(Dollars in thousands)	2016			2015			2014
Balance at beginning of year	$	13,254		$	22,674		$	46,926
Additions
Commercial	1,850			5,187			8,208
Residential	1,022			3,211			2,329
Total additions	2,872			8,398			10,537
Disposals
Commercial	(6,993		)	(12,722		)	(28,933		)
Residential	(2,363		)	(3,095		)	(1,637		)
Total disposals	(9,356		)	(15,817		)	(30,570		)
Valuation adjustments
Commercial	(345		)	(1,617		)	(3,765		)
Residential	(141		)	(384		)	(454		)
Total valuation adjustments	(486		)	(2,001		)	(4,219		)
Balance at end of year	$	6,284		$	13,254		$	22,674

The preceding table includes OREO subject to loss sharing agreements of $0.4 million, $1.4 million and $0.3 million at December 31, 2016, 2015 and 2014, respectively.

Indemnification Asset Rollforward [Table Text Block]

Changes in the balance of the FDIC indemnification asset and the related impact to the Consolidated Statements of Income are presented in the table that follows:



(Dollars in thousands)	Years ended December 31,
	2016			2015			2014			Affected Line Item in the Consolidated Statements of Income
Balance at beginning of year	$	17,630		$	22,666		$	45,091
Adjustments not reflected in income
Net FDIC claims (received) / paid	459			2,423			(6,785		)
Adjustments reflected in income
Amortization	(4,509		)	(4,740		)	(5,531		)	Interest income, other earning assets
FDIC loss sharing income	(1,563		)	(2,487		)	365			Noninterest income, FDIC loss sharing income
Offset to accelerated discount	0			(232		)	(10,474		)	Noninterest income, accelerated discount on covered loans
Balance at end of year	$	12,017		$	17,630		$	22,666

Loans Excluded from FASB ASC Topic 310-30

LOANS - Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans [Abstract]

Accretable Yield for Acquired Loans

Changes in the carrying amount of accretable difference for purchased impaired loans for the years ended December 31 were as follows:



(Dollars in thousands)	2016			2015			2014
Balance at beginning of year	$	64,857		$	106,622		$	133,671
Reclassification from non-accretable difference	4,606			1,075			23,216
Accretion	(14,429		)	(21,544		)	(33,730		)
Other net activity ⁽¹⁾	(8,251		)	(21,296		)	(16,535		)
Balance at end of year	$	46,783		$	64,857		$	106,622

⁽¹⁾ Includes the impact of loan repayments and charge-offs.