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LOANS AND LEASES (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Commercial and Consumer Credit Exposure by Risk Attribute Commercial and consumer credit exposure by risk attribute was as follows:
 
 
As of September 30, 2018
 
 
Commercial
 
Real Estate
 
Lease
 
 
(Dollars in thousands)
 
& industrial
 
Construction
 
Commercial
 
financing
 
Total
Pass
 
$
2,335,925

 
$
552,973

 
$
3,757,627

 
$
92,551

 
$
6,739,076

Special Mention
 
39,060

 
12,094

 
49,463

 
0

 
100,617

Substandard
 
51,605

 
10

 
61,053

 
2,766

 
115,434

Doubtful
 
0

 
0

 
0

 
0

 
0

Total
 
$
2,426,590

 
$
565,077

 
$
3,868,143

 
$
95,317

 
$
6,955,127


(Dollars in thousands)
 
Residential
real estate
 
Home equity
 
Installment
 
Credit card
 
Total
Performing
 
$
919,440

 
$
809,653

 
$
97,097

 
$
45,741

 
$
1,871,931

Nonperforming
 
13,522

 
6,480

 
316

 
0

 
20,318

Total
 
$
932,962

 
$
816,133

 
$
97,413

 
$
45,741

 
$
1,892,249


 
 
As of December 31, 2017
 
 
Commercial
 
Real Estate
 
Lease
 
 
(Dollars in thousands)
 
& industrial
 
Construction
 
Commercial
 
financing
 
Total
Pass
 
$
1,882,464

 
$
467,687

 
$
2,446,999

 
$
88,078

 
$
4,885,228

Special Mention
 
6,226

 
0

 
4,436

 
0

 
10,662

Substandard
 
24,053

 
43

 
38,656

 
1,269

 
64,021

Doubtful
 
0

 
0

 
0

 
0

 
0

Total
 
$
1,912,743

 
$
467,730

 
$
2,490,091

 
$
89,347

 
$
4,959,911


(Dollars in thousands)
 
Residential
real estate
 
Home equity
 
Installment
 
Credit card
 
Total
Performing
 
$
463,459

 
$
489,148

 
$
41,331

 
$
46,691

 
$
1,040,629

Nonperforming
 
7,932

 
4,456

 
255

 
0

 
12,643

Total
 
$
471,391

 
$
493,604

 
$
41,586

 
$
46,691

 
$
1,053,272
Loan Delinquency, including Nonaccrual Loans Loan delinquency, including loans classified as nonaccrual, was as follows:
 
 
As of September 30, 2018
(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 & industrial
 
$
1,991

 
$
1,613

 
$
2,662

 
$
6,266

 
$
2,414,484

 
$
2,420,750

 
$
5,840

 
$
2,426,590

 
$
0

Lease financing
 
0

 
0

 
0

 
0

 
95,317

 
95,317

 
0

 
95,317

 
0

Construction real estate
 
283

 
0

 
0

 
283

 
564,535

 
564,818

 
259

 
565,077

 
0

Commercial real estate
 
4,513

 
407

 
16,296

 
21,216

 
3,789,238

 
3,810,454

 
57,689

 
3,868,143

 
0

Residential real estate
 
2,796

 
1,828

 
2,825

 
7,449

 
888,367

 
895,816

 
37,146

 
932,962

 
0

Home equity
 
3,435

 
1,336

 
3,153

 
7,924

 
804,670

 
812,594

 
3,539

 
816,133

 
0

Installment
 
201

 
21

 
282

 
504

 
96,360

 
96,864

 
549

 
97,413

 
0

Credit card
 
301

 
179

 
144

 
624

 
45,117

 
45,741

 
0

 
45,741

 
144

Total
 
$
13,520

 
$
5,384

 
$
25,362

 
$
44,266

 
$
8,698,088

 
$
8,742,354

 
$
105,022

 
$
8,847,376

 
$
144


 
 
As of December 31, 2017
(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 & industrial
 
$
755

 
$
1,657

 
$
5,078

 
$
7,490

 
$
1,901,821

 
$
1,909,311

 
$
3,432

 
$
1,912,743

 
$
0

Lease financing
 
485

 
0

 
0

 
485

 
88,862

 
89,347

 
0

 
89,347

 
0

Construction real estate
 
234

 
0

 
0

 
234

 
467,216

 
467,450

 
280

 
467,730

 
0

Commercial real estate
 
1,716

 
201

 
8,777

 
10,694

 
2,419,969

 
2,430,663

 
59,428

 
2,490,091

 
0

Residential real estate
 
526

 
811

 
1,992

 
3,329

 
430,500

 
433,829

 
37,562

 
471,391

 
0

Home equity
 
2,716

 
394

 
1,753

 
4,863

 
485,127

 
489,990

 
3,614

 
493,604

 
0

Installment
 
179

 
29

 
205

 
413

 
40,529

 
40,942

 
644

 
41,586

 
0

Credit card
 
285

 
87

 
62

 
434

 
46,257

 
46,691

 
0

 
46,691

 
62

Total
 
$
6,896

 
$
3,179

 
$
17,867

 
$
27,942

 
$
5,880,281

 
$
5,908,223

 
$
104,960

 
$
6,013,183

 
$
62
Loans Restructured During Period The following tables provide information on loan modifications classified as TDRs during the three and nine months ended September 30, 2018 and 2017:
 
 
Three months ended
 
 
September 30, 2018
 
September 30, 2017
(Dollars in thousands)
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
Commercial & industrial
 
0

 
$
0

 
$
0

 
1

 
$
45

 
$
37

Construction real estate
 
0

 
0

 
0

 
0

 
0

 
0

Commercial real estate
 
0

 
0

 
0

 
1

 
285

 
285

Residential real estate
 
1

 
148

 
143

 
6

 
416

 
315

Home equity
 
1

 
10

 
10

 
1

 
39

 
39

Installment
 
0

 
0

 
0

 
0

 
0

 
0

Total
 
2

 
$
158

 
$
153

 
9

 
$
785

 
$
676

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
September 30, 2018
 
September 30, 2017
(Dollars in thousands)
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
 
Number of loans
 
Pre-modification loan balance
 
Period end balance
Commercial & industrial
 
12

 
$
7,149

 
$
7,096

 
7

 
$
5,724

 
$
5,661

Construction real estate
 
0

 
0

 
0

 
0

 
0

 
0

Commercial real estate
 
6

 
2,119

 
2,088

 
7

 
1,791

 
1,734

Residential real estate
 
4

 
442

 
437

 
6

 
416

 
315

Home equity
 
1

 
10

 
10

 
1

 
39

 
39

Installment
 
0

 
0

 
0

 
0

 
0

 
0

Total
 
23

 
$
9,720

 
$
9,631

 
21

 
$
7,970

 
$
7,749
Loans Restructured, Modifications The following table provides information on how TDRs were modified during the three and nine months ended September 30, 2018 and 2017:
 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
(Dollars in thousands)
 
2018
 
2017
 
2018
 
2017
Extended maturities
 
$
143

 
$
0

 
$
3,031

 
$
3,261

Adjusted interest rates
 
0
 
0
 
52

 
2,767

Combination of rate and maturity changes
 
0
 
285
 
0

 
465

Forbearance
 
0
 
354
 
6,199

 
1,181

Other (1)
 
10
 
37
 
349

 
75

Total
 
$
153

 
$
676

 
$
9,631

 
$
7,749

(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions
Nonaccrual, Restructured and Impaired Loans The following table provides information on impaired loans, excluding purchased impaired loans:
(Dollars in thousands)
 
September 30, 2018
 
December 31, 2017
Impaired loans
 
 
 
 
Nonaccrual loans (1)
 
 
 
 
Commercial & industrial
 
$
4,310

 
$
5,229

Lease financing
 
0

 
82

Construction real estate
 
10

 
29

Commercial real estate
 
20,338

 
10,616

Residential real estate
 
11,365

 
4,140

Home equity
 
6,018

 
3,743

Installment
 
327

 
243

Nonaccrual loans
 
42,368

 
24,082

Accruing troubled debt restructurings
 
20,313

 
17,545

Total impaired loans
 
$
62,681

 
$
41,627

(1) Nonaccrual loans include nonaccrual TDRs of $4.7 million and $6.4 million as of September 30, 2018 and December 31, 2017, respectively.

 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
(Dollars in thousands)
 
2018
 
2017
 
2018
 
2017
Interest income effect on impaired loans
 
 
 
 
 
 
 
 
Gross amount of interest that would have been recorded under original terms
 
$
1,192

 
$
761

 
$
3,126

 
$
2,735

Interest included in income
 
 
 
 
 
 
 
 
Nonaccrual loans
 
169

 
140

 
395

 
445

Troubled debt restructurings
 
187

 
168

 
500

 
563

Total interest included in income
 
356

 
308

 
895

 
1,008

Net impact on interest income
 
$
836

 
$
453

 
$
2,231

 
$
1,727
Investment in Impaired Loans First Financial's investment in impaired loans was as follows:
 
 
As of September 30, 2018
 
As of December 31, 2017
(Dollars in thousands)
 
Current balance
 
Contractual
principal
balance
 
Related
allowance
 
Current balance
 
Contractual
principal
balance
 
Related
allowance
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
9,209

 
$
13,034

 
$
0

 
$
7,162

 
$
8,460

 
$
0

Lease financing
 
0

 
0

 
0

 
82

 
82

 
0

Construction real estate
 
10

 
27

 
0

 
29

 
60

 
0

Commercial real estate
 
26,722

 
32,706

 
0

 
18,423

 
20,837

 
0

Residential real estate
 
14,277

 
17,083

 
0

 
6,876

 
8,145

 
0

Home equity
 
6,554

 
7,337

 
0

 
4,356

 
5,399

 
0

Installment
 
332

 
639

 
0

 
255

 
422

 
0

Total
 
57,104

 
70,826

 
0

 
37,183

 
43,405

 
0

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans with an allowance recorded
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
 
2,776

 
2,776

 
1,562

 
169

 
169

 
169

Lease financing
 
0

 
0

 
0

 
0

 
0

 
0

Construction real estate
 
0

 
0

 
0

 
0

 
0

 
0

Commercial real estate
 
1,668

 
2,322

 
66

 
3,119

 
3,120

 
448

Residential real estate
 
1,033

 
1,033

 
160

 
1,056

 
1,063

 
160

Home equity
 
100

 
100

 
2

 
100

 
100

 
2

Installment
 
0

 
0

 
0

 
0

 
0

 
0

Total
 
5,577

 
6,231

 
1,790

 
4,444

 
4,452

 
779

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
 

 
 

 
 
 
 
 
 
Commercial & industrial
 
11,985

 
15,810

 
1,562

 
7,331

 
8,629

 
169

Lease financing
 
0

 
0

 
0

 
82

 
82

 
0

Construction real estate
 
10

 
27

 
0

 
29

 
60

 
0

Commercial real estate
 
28,390

 
35,028

 
66

 
21,542

 
23,957

 
448

Residential real estate
 
15,310

 
18,116

 
160

 
7,932

 
9,208

 
160

Home equity
 
6,654

 
7,437

 
2

 
4,456

 
5,499

 
2

Installment
 
332

 
639

 
0

 
255

 
422

 
0

Total
 
$
62,681

 
$
77,057

 
$
1,790

 
$
41,627

 
$
47,857

 
$
779


First Financial's average impaired loans by class and interest income recognized by class was as follows:
 
 
Three months ended
 
 
September 30, 2018
 
September 30, 2017
(Dollars in thousands)
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
10,033

 
$
63

 
$
13,730

 
$
63

Lease financing
 
0

 
0

 
91

 
1

Construction real estate
 
17

 
0

 
950

 
0

Commercial real estate
 
28,689

 
136

 
23,187

 
147

Residential real estate
 
13,247

 
86

 
7,569

 
55

Home equity
 
6,463

 
31

 
3,791

 
26

Installment
 
318

 
1

 
290

 
1

Total
 
58,767

 
317

 
49,608

 
293

 
 
 
 
 
 
 
 
 
Loans with an allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
1,578

 
28

 
1,832

 
2

Lease financing
 
0

 
0

 
0

 
0

Construction real estate
 
0

 
0

 
0

 
0

Commercial real estate
 
1,012

 
3

 
652

 
5

Residential real estate
 
1,036

 
7

 
1,067

 
7

Home equity
 
100

 
1

 
101

 
1

Installment
 
0

 
0

 
0

 
0

Total
 
3,726

 
39

 
3,652

 
15

 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
Commercial & industrial
 
11,611

 
91

 
15,562

 
65

Lease financing
 
0

 
0

 
91

 
1

Construction real estate
 
17

 
0

 
950

 
0

Commercial real estate
 
29,701

 
139

 
23,839

 
152

Residential real estate
 
14,283

 
93

 
8,636

 
62

Home equity
 
6,563

 
32

 
3,892

 
27

Installment
 
318

 
1

 
290

 
1

Total
 
$
62,493

 
$
356

 
$
53,260

 
$
308


 
 
Nine months ended
 
 
September 30, 2018
 
September 30, 2017
(Dollars in thousands)
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Loans with no related allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
8,950

 
$
162

 
$
14,669

 
$
259

Lease financing
 
21

 
0

 
120

 
3

Construction real estate
 
22

 
2

 
744

 
0

Commercial real estate
 
25,044

 
375

 
21,563

 
451

Residential real estate
 
9,875

 
209

 
7,801

 
147

Home equity
 
5,339

 
78

 
3,951

 
77

Installment
 
299

 
2

 
351

 
4

Total
 
49,550

 
828

 
49,199

 
941

 
 
 
 
 
 
 
 
 
Loans with an allowance recorded
 
 
 
 
 
 
 
 
Commercial & industrial
 
891

 
34

 
1,463

 
26

Lease financing
 
0

 
0

 
0

 
0

Construction real estate
 
0

 
0

 
0

 
0

Commercial real estate
 
1,376

 
9

 
2,513

 
18

Residential real estate
 
1,043

 
21

 
1,126

 
20

Home equity
 
100

 
3

 
101

 
3

Installment
 
0

 
0

 
0

 
0

Total
 
3,410

 
67

 
5,203

 
67

 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
Commercial & industrial
 
9,841

 
196

 
16,132

 
285

Lease financing
 
21

 
0

 
120

 
3

Construction real estate
 
22

 
2

 
744

 
0

Commercial real estate
 
26,420

 
384

 
24,076

 
469

Residential real estate
 
10,918

 
230

 
8,927

 
167

Home equity
 
5,439

 
81

 
4,052

 
80

Installment
 
299

 
2

 
351

 
4

Total
 
$
52,960

 
$
895

 
$
54,402

 
$
1,008
Changes in Other Real Estate Owned Changes in OREO were as follows:
 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
(Dollars in thousands)
 
2018
 
2017
 
2018
 
2017
Balance at beginning of period
 
$
1,853

 
$
5,961

 
$
2,781

 
$
6,284

Additions
 
 
 
 
 
 
 
 
Commercial & industrial
 
79

 
1,559

 
1,269

 
1,731

Residential real estate
 
739

 
235

 
1,723

 
2,313

Total additions
 
818

 
1,794

 
2,992

 
4,044

Disposals
 
 

 
 
 
 

 
 
Commercial & industrial
 
(181
)
 
(3,684
)
 
(2,611
)
 
(5,291
)
Residential real estate
 
(117
)
 
(821
)
 
(527
)
 
(1,506
)
Total disposals
 
(298
)
 
(4,505
)
 
(3,138
)
 
(6,797
)
Valuation adjustment
 
 

 
 
 
 

 
 
Commercial & industrial
 
(258
)
 
(102
)
 
(355
)
 
(264
)
Residential real estate
 
(197
)
 
(32
)
 
(362
)
 
(151
)
Total valuation adjustment
 
(455
)
 
(134
)
 
(717
)
 
(415
)
Balance at end of period
 
$
1,918

 
$
3,116

 
$
1,918

 
$
3,116