XML 24 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
ALLOWANCE FOR LOAN AND LEASE LOSSES
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
ALLOWANCE FOR LOAN AND LEASE LOSSES ALLOWANCE FOR LOAN AND LEASE LOSSES

Management maintains the ALLL at a level that it considers sufficient to absorb probable incurred loan and lease losses inherent in the portfolio. Management determines the adequacy of the ALLL based on historical loss experience as well as other significant factors such as composition of the portfolio, economic conditions, geographic footprint, the results of periodic internal and external evaluations of delinquent, nonaccrual and classified loans and any other adverse situations that may affect a specific borrower's ability to repay, including the timing of future payments.

The ALLL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or from the liquidation of collateral.


Changes in the ALLL by loan category were as follows:
 
 
Three months ended September 30, 2018
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home Equity
 
Installment
 
Credit card
 
Total
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
17,528

 
$
797

 
$
3,985

 
$
20,511

 
$
4,668

 
$
4,801

 
$
290

 
$
1,496

 
$
54,076

Provision for loan and lease losses
 
2,035

 
287

 
(114
)
 
959

 
50

 
63

 
(288
)
 
246

 
3,238

Gross charge-offs
 
(232
)
 
0

 
0

 
(902
)
 
(145
)
 
(351
)
 
(43
)
 
(390
)
 
(2,063
)
Recoveries
 
627

 
0

 
146

 
786

 
71

 
419

 
351

 
64

 
2,464

Total net charge-offs
 
395

 
0

 
146

 
(116
)
 
(74
)
 
68

 
308

 
(326
)
 
401

Ending allowance for loan and lease losses
 
$
19,958

 
$
1,084

 
$
4,017

 
$
21,354

 
$
4,644

 
$
4,932

 
$
310

 
$
1,416

 
$
57,715

 
 
Three months ended September 30, 2017
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home Equity
 
Installment
 
Credit card
 
Total
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
18,313

 
$
550

 
$
3,416

 
$
21,717

 
$
5,016

 
$
4,138

 
$
355

 
$
1,368

 
$
54,873

Provision for loan and lease losses
 
3,024

 
507

 
(178
)
 
(1,003
)
 
(243
)
 
819

 
(80
)
 
107

 
2,953

Loans charged off
 
(4,122
)
 
0

 
0

 
(58
)
 
(23
)
 
(71
)
 
(24
)
 
(201
)
 
(4,499
)
Recoveries
 
325

 
0

 
0

 
585

 
70

 
110

 
74

 
43

 
1,207

Total net charge-offs
 
(3,797
)
 
0

 
0

 
527

 
47

 
39

 
50

 
(158
)
 
(3,292
)
Ending allowance for loan and lease losses
 
$
17,540

 
$
1,057

 
$
3,238

 
$
21,241

 
$
4,820

 
$
4,996

 
$
325

 
$
1,317

 
$
54,534

  
 
Nine months ended September 30, 2018
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
17,598

 
$
675

 
$
3,577

 
$
20,930

 
$
4,683

 
$
4,935

 
$
307

 
$
1,316

 
$
54,021

Provision for loan and lease losses
 
6,252

 
408

 
294

 
1,155

 
136

 
(60
)
 
(201
)
 
1,292

 
9,276

Loans charged off
 
(5,473
)
 
0

 
0

 
(3,156
)
 
(342
)
 
(978
)
 
(277
)
 
(1,328
)
 
(11,554
)
Recoveries
 
1,581

 
1

 
146

 
2,425

 
167

 
1,035

 
481

 
136

 
5,972

Total net charge-offs
 
(3,892
)
 
1

 
146

 
(731
)
 
(175
)
 
57

 
204

 
(1,192
)
 
(5,582
)
Ending allowance for loan and lease losses
 
$
19,958

 
$
1,084

 
$
4,017

 
$
21,354

 
$
4,644

 
$
4,932

 
$
310

 
$
1,416

 
$
57,715


 
 
Nine months ended September 30, 2017
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
19,225

 
$
716

 
$
3,282

 
$
26,540

 
$
3,208

 
$
3,043

 
$
388

 
$
1,559

 
$
57,961

Provision for loan and lease losses
 
5,965

 
340

 
(133
)
 
(6,510
)
 
1,781

 
2,150

 
(52
)
 
246

 
3,787

Loans charged off
 
(8,930
)
 
0

 
0

 
(1,028
)
 
(307
)
 
(635
)
 
(199
)
 
(648
)
 
(11,747
)
Recoveries
 
1,280

 
1

 
89

 
2,239

 
138

 
438

 
188

 
160

 
4,533

Total net charge-offs
 
(7,650
)
 
1

 
89

 
1,211

 
(169
)
 
(197
)
 
(11
)
 
(488
)
 
(7,214
)
Ending allowance for loan and lease losses
 
$
17,540

 
$
1,057

 
$
3,238

 
$
21,241

 
$
4,820

 
$
4,996

 
$
325

 
$
1,317

 
$
54,534

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Ending allowance balance attributable to loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
169

 
$
0

 
$
0

 
$
448

 
$
160

 
$
2

 
$
0

 
$
0

 
$
779

Collectively evaluated for impairment
 
17,429

 
675

 
3,577

 
20,482

 
4,523

 
4,933

 
307

 
1,316

 
53,242

Ending allowance for loan and lease losses
 
$
17,598

 
$
675

 
$
3,577

 
$
20,930

 
$
4,683

 
$
4,935

 
$
307

 
$
1,316

 
$
54,021

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
7,331

 
$
82

 
$
29

 
$
21,542

 
$
7,932

 
$
4,456

 
$
255

 
$
0

 
$
41,627

Collectively evaluated for impairment
 
1,905,412

 
89,265

 
467,701

 
2,468,549

 
463,459

 
489,148

 
41,331

 
46,691

 
5,971,556

Total loans
 
$
1,912,743

 
$
89,347

 
$
467,730

 
$
2,490,091

 
$
471,391

 
$
493,604

 
$
41,586

 
$
46,691

 
$
6,013,183



 
 
As of September 30, 2018
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Commercial & industrial
 
Lease financing
 
Construction
 
Commercial
 
Residential
 
Home equity
 
Installment
 
Credit card
 
Total
Ending allowance balance attributable to loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
1,562

 
$
0

 
$
0

 
$
66

 
$
160

 
$
2

 
$
0

 
$
0

 
$
1,790

Collectively evaluated for impairment
 
18,396

 
1,084

 
4,017

 
21,288

 
4,484

 
4,930

 
310

 
1,416

 
55,925

Ending allowance for loan and lease losses
 
$
19,958

 
$
1,084

 
$
4,017

 
$
21,354

 
$
4,644

 
$
4,932

 
$
310

 
$
1,416

 
$
57,715

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
11,985

 
$
0

 
$
10

 
$
28,390

 
$
15,310

 
$
6,654

 
$
332

 
$
0

 
$
62,681

Collectively evaluated for impairment
 
2,414,605

 
95,317

 
565,067

 
3,839,753

 
917,652

 
809,479

 
97,081

 
45,741

 
8,784,695

Total loans
 
$
2,426,590

 
$
95,317

 
$
565,077

 
$
3,868,143

 
$
932,962

 
$
816,133

 
$
97,413

 
$
45,741

 
$
8,847,376