LOANS AND LEASES (Tables)

3 Months Ended

Mar. 31, 2019

Commercial and Consumer Credit Exposure by Risk Attribute

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



	As of March 31, 2019
	Commercial		Real Estate				Lease
(Dollars in thousands)	& industrial		Construction		Commercial		financing		Total
Pass	$	2,443,488	$	457,508	$	3,720,197	$	92,527	$	6,713,720
Special Mention	36,936		0		25,935		365		63,236
Substandard	63,003		605		56,047		2,681		122,336
Doubtful	0		0		0		0		0
Total	$	2,543,427	$	458,113	$	3,802,179	$	95,573	$	6,899,292



(Dollars in thousands)	Residential real estate		Home equity		Installment		Credit card		Total
Performing	$	958,185	$	790,893	$	90,515	$	46,827	$	1,886,420
Nonperforming	16,935		6,225		174		155		23,489
Total	$	975,120	$	797,118	$	90,689	$	46,982	$	1,909,909



	As of December 31, 2018
	Commercial		Real Estate				Lease
(Dollars in thousands)	& industrial		Construction		Commercial		financing		Total
Pass	$	2,432,834	$	548,323	$	3,664,434	$	90,902	$	6,736,493
Special Mention	24,594		603		38,653		0		63,850
Substandard	57,233		9		51,594		2,513		111,349
Doubtful	0		0		0		0		0
Total	$	2,514,661	$	548,935	$	3,754,681	$	93,415	$	6,911,692



(Dollars in thousands)	Residential real estate		Home equity		Installment		Credit card		Total
Performing	$	939,936	$	811,108	$	93,038	$	46,382	$	1,890,464
Nonperforming	15,710		6,174		174		0		22,058
Total	$	955,646	$	817,282	$	93,212	$	46,382	$	1,912,522

Loan Delinquency, including Nonaccrual Loans

Loan delinquency, including loans classified as nonaccrual, was as follows:



	As of March 31, 2019
(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	$	917	$	7,797	$	8,255	$	16,969	$	2,521,040	$	2,538,009	$	5,418	$	2,543,427	$	23
Lease financing	0		0		0		0		95,573		95,573		0		95,573		0
Construction real estate	0		598		0		598		457,323		457,921		192		458,113		0
Commercial real estate	1,695		1,103		13,462		16,260		3,738,962		3,755,222		46,957		3,802,179		0
Residential real estate	3,329		1,495		4,326		9,150		933,896		943,046		32,074		975,120		0
Home equity	2,960		1,046		2,702		6,708		787,129		793,837		3,281		797,118		0
Installment	317		30		84		431		89,837		90,268		421		90,689		0
Credit card	193		206		155		554		46,428		46,982		0		46,982		155
Total	$	9,411	$	12,275	$	28,984	$	50,670	$	8,670,188	$	8,720,858	$	88,343	$	8,809,201	$	178



	As of December 31, 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	$	13,369	$	41	$	7,423	$	20,833	$	2,488,450	$	2,509,283	$	5,378	$	2,514,661	$	0
Lease financing	352		0		0		352		93,063		93,415		0		93,415		0
Construction real estate	0		0		0		0		548,687		548,687		248		548,935		0
Commercial real estate	6,279		1,158		12,644		20,081		3,682,455		3,702,536		52,145		3,754,681		0
Residential real estate	11,060		2,976		4,535		18,571		902,404		920,975		34,671		955,646		0
Home equity	5,245		1,228		2,578		9,051		804,835		813,886		3,396		817,282		0
Installment	420		37		145		602		92,128		92,730		482		93,212		0
Credit card	541		96		63		700		45,682		46,382		0		46,382		63
Total	$	37,266	$	5,536	$	27,388	$	70,190	$	8,657,704	$	8,727,894	$	96,320	$	8,824,214	$	63

Loans Restructured During Period

The following tables provide information on loan modifications classified as TDRs during the three months ended March 31, 2019 and 2018:




	Three months ended
	March 31, 2019					March 31, 2018
(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	5	$	7,637	$	7,661	4	$	928	$	913
Construction real estate	0	0		0		0	0		0
Commercial real estate	6	1,323		1,232		2	72		72
Residential real estate	5	458		458		2	93		93
Home equity	1	17		17		0	0		0
Installment	0	0		0		0	0		0
Total	17	$	9,435	$	9,368	8	$	1,093	$	1,078

For TDRs identified during the three months ended March 31, 2019 and 2018, there were no chargeoffs for the portion of TDRs determined to be uncollectible.

Loans Restructured, Modifications

The following table provides information on how TDRs were modified during the three months ended March 31, 2019 and 2018:



	Three months ended
	March 31,
(Dollars in thousands)	2019		2018
Extended maturities	$	2,877	$	888
Adjusted interest rates	5,284		52
Combination of rate and maturity changes	508		0
Forbearance	557		0
Other ⁽¹⁾	142		138
Total	$	9,368	$	1,078

⁽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)	March 31, 2019		December 31, 2018
Impaired loans
Nonaccrual loans⁽¹⁾
Commercial & industrial	$	19,263	$	30,925
Lease financing	301		22
Construction real estate	7		9
Commercial real estate	21,082		20,500
Residential real estate	13,052		13,495
Home equity	5,581		5,580
Installment	170		169
Nonaccrual loans	59,456		70,700
Accruing troubled debt restructurings	22,817		16,109
Total impaired loans	$	82,273	$	86,809

⁽¹⁾ Nonaccrual loans include nonaccrual TDRs of $13.1 million and $22.4 million as of March 31, 2019 and December 31, 2018, respectively.



	Three months ended
	March 31,
(Dollars in thousands)	2019		2018
Interest income effect on impaired loans
Gross amount of interest that would have been recorded under original terms	$	1,613	$	802
Interest included in income
Nonaccrual loans	335		80
Troubled debt restructurings	236		124
Total interest included in income	571		204
Net impact on interest income	$	1,042	$	598

Investment in Impaired Loans

First Financial's investment in impaired loans was as follows:



	As of March 31, 2019						As of December 31, 2018
(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	$	30,142	$	46,215	$	0	$	36,694	$	42,561	$	0
Lease financing	301		301		0		22		22		0
Construction real estate	8		25		0		9		26		0
Commercial real estate	22,708		29,530		0		23,513		31,375		0
Residential real estate	16,637		19,237		0		17,297		19,975		0
Home equity	6,225		7,232		0		6,351		7,461		0
Installment	174		310		0		174		563		0
Total	76,195		102,850		0		84,060		101,983		0

Loans with an allowance recorded
Commercial & industrial	3,282		3,282		738		939		939		667
Lease financing	0		0		0		0		0		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	2,498		3,579		651		1,509		1,509		461
Residential real estate	298		298		31		301		301		32
Home equity	0		0		0		0		0		0
Installment	0		0		0		0		0		0
Total	6,078		7,159		1,420		2,749		2,749		1,160

Total
Commercial & industrial	33,424		49,497		738		37,633		43,500		667
Lease financing	301		301		0		22		22		0
Construction real estate	8		25		0		9		26		0
Commercial real estate	25,206		33,109		651		25,022		32,884		461
Residential real estate	16,935		19,535		31		17,598		20,276		32
Home equity	6,225		7,232		0		6,351		7,461		0
Installment	174		310		0		174		563		0
Total	$	82,273	$	110,009	$	1,420	$	86,809	$	104,732	$	1,160

First Financial's average impaired loans by class and interest income recognized by class was as follows:



	Three months ended
	March 31, 2019				March 31, 2018
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Loans with no related allowance recorded
Commercial & industrial	$	33,418	$	279	$	7,867	$	26
Lease financing	162		0		41		0
Construction real estate	9		0		28		1
Commercial real estate	23,111		103		21,400		99
Residential real estate	16,967		86		6,503		47
Home equity	6,288		38		4,214		20
Installment	174		1		281		0
Total	80,129		507		40,334		193

Loans with an allowance recorded
Commercial & industrial	2,111		43		204		0
Lease financing	0		0		0		0
Construction real estate	0		0		0		0
Commercial real estate	2,004		19		1,739		3
Residential real estate	300		2		1,051		7
Home equity	0		0		101		1
Installment	0		0		0		0
Total	4,415		64		3,095		11

Total
Commercial & industrial	35,529		322		8,071		26
Lease financing	162		0		41		0
Construction real estate	9		0		28		1
Commercial real estate	25,115		122		23,139		102
Residential real estate	17,267		88		7,554		54
Home equity	6,288		38		4,315		21
Installment	174		1		281		0
Total	$	84,544	$	571	$	43,429	$	204

Changes in Other Real Estate Owned

Changes in OREO were as follows:



	Three months ended
	March 31,
(Dollars in thousands)	2019			2018
Balance at beginning of period	$	1,401		$	2,781
Additions
Commercial & industrial	0			170
Residential real estate	504			459
Total additions	504			629
Disposals
Commercial & industrial	(22		)	(2,104		)
Residential real estate	(161		)	(118		)
Total disposals	(183		)	(2,222		)
Valuation adjustment
Commercial & industrial	0			(97		)
Residential real estate	(57		)	(26		)
Total valuation adjustment	(57		)	(123		)
Balance at end of period	$	1,665		$	1,065