(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company |
Page No. | |
AFS | Available-for-sale | FASB | Financial Accounting Standards Board | |
ALLL | Allowance for loan and lease losses | FDIC | Federal Deposit Insurance Corporation | |
AOCI | Accumulated other comprehensive income | FHLB | Federal Home Loan Bank | |
ASC | Accounting standards codification | First Financial | First Financial Bancorp. | |
ASU | Accounting standards update | Form 10-K | First Financial Bancorp. Annual Report on Form 10-K | |
ATM | Automated teller machine | FRB | Federal Reserve Bank | |
Bank | First Financial Bank | GAAP | U.S. Generally Accepted Accounting Principles | |
Basel III | Basel Committee regulatory capital reforms, Third Basel Accord | HTM | Held-to-maturity | |
BGF | Bannockburn Global Forex, LLC | Insignificant | Less than $0.1 million | |
Bp/bps | Basis point(s) | IRLC | Interest rate lock commitment | |
BOLI | Bank owned life insurance | MSFG | MainSource Financial Group, Inc. | |
CDs | Certificates of deposit | N/A | Not applicable | |
C&I | Commercial & industrial | NII | Net interest income | |
CRE | Commercial real estate | OREO | Other real estate owned | |
Company | First Financial Bancorp. | PCA | Prompt corrective action | |
DDA | Demand deposit account | ROU | Right-of-use | |
ERM | Enterprise risk management | SEC | U.S. Securities and Exchange Commission | |
EVE | Economic value of equity | Topic 842 | FASB ASC Topic 842, Leasing | |
Fair Value Topic | FASB ASC Topic 820, Fair Value Measurement | TDR | Troubled debt restructuring | |
June 30, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Cash and due from banks | $ | $ | |||||
Interest-bearing deposits with other banks | |||||||
Investment securities available-for-sale, at fair value (amortized cost $3,104,152 at June 30, 2019 and $2,792,326 at December 31, 2018) | |||||||
Investment securities held-to-maturity (fair value $153,039 at June 30, 2019 and $424,118 at December 31, 2018) | |||||||
Other investments | |||||||
Loans held for sale | |||||||
Loans and leases | |||||||
Commercial & industrial | |||||||
Lease financing | |||||||
Construction real estate | |||||||
Commercial real estate | |||||||
Residential real estate | |||||||
Home equity | |||||||
Installment | |||||||
Credit card | |||||||
Total loans and leases | |||||||
Less: Allowance for loan and lease losses | |||||||
Net loans and leases | |||||||
Premises and equipment | |||||||
Goodwill | |||||||
Other intangibles | |||||||
Accrued interest and other assets | |||||||
Total assets | $ | $ | |||||
Liabilities | |||||||
Deposits | |||||||
Interest-bearing demand | $ | $ | |||||
Savings | |||||||
Time | |||||||
Total interest-bearing deposits | |||||||
Noninterest-bearing | |||||||
Total deposits | |||||||
Federal funds purchased and securities sold under agreements to repurchase | |||||||
FHLB short-term borrowings | |||||||
Total short-term borrowings | |||||||
Long-term debt | |||||||
Total borrowed funds | |||||||
Accrued interest and other liabilities | |||||||
Total liabilities | |||||||
Shareholders' equity | |||||||
Common stock - no par value | |||||||
Authorized - 160,000,000 shares; Issued - 104,281,794 shares in 2019 and 2018 | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | |||||
Treasury stock, at cost, 5,634,104 shares in 2019 and 6,387,508 shares in 2018 | ( | ) | ( | ) | |||
Total shareholders' equity | |||||||
Total liabilities and shareholders' equity | $ | $ |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest income | |||||||||||||||
Loans and leases, including fees | $ | $ | $ | $ | |||||||||||
Investment securities | |||||||||||||||
Taxable | |||||||||||||||
Tax-exempt | |||||||||||||||
Total interest on investment securities | |||||||||||||||
Other earning assets | |||||||||||||||
Total interest income | |||||||||||||||
Interest expense | |||||||||||||||
Deposits | |||||||||||||||
Short-term borrowings | |||||||||||||||
Long-term borrowings | |||||||||||||||
Total interest expense | |||||||||||||||
Net interest income | |||||||||||||||
Provision for loan and lease losses | |||||||||||||||
Net interest income after provision for loan and lease losses | |||||||||||||||
Noninterest income | |||||||||||||||
Service charges on deposit accounts | |||||||||||||||
Trust and wealth management fees | |||||||||||||||
Bankcard income | |||||||||||||||
Client derivative fees | |||||||||||||||
Net gain from sales of loans | |||||||||||||||
Net gain (loss) on sales/transfers of investment securities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other | |||||||||||||||
Total noninterest income | |||||||||||||||
Noninterest expenses | |||||||||||||||
Salaries and employee benefits | |||||||||||||||
Net occupancy | |||||||||||||||
Furniture and equipment | |||||||||||||||
Data processing | |||||||||||||||
Marketing | |||||||||||||||
Communication | |||||||||||||||
Professional services | |||||||||||||||
State intangible tax | |||||||||||||||
FDIC assessments | |||||||||||||||
Intangible assets amortization | |||||||||||||||
Other | |||||||||||||||
Total noninterest expenses | |||||||||||||||
Income before income taxes | |||||||||||||||
Income tax expense | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Net earnings per common share - basic | $ | $ | $ | $ | |||||||||||
Net earnings per common share - diluted | $ | $ | $ | $ | |||||||||||
Cash dividends declared per share | $ | $ | $ | $ | |||||||||||
Average common shares outstanding - basic | |||||||||||||||
Average common shares outstanding - diluted |
FIRST FINANCIAL BANCORP. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on debt securities arising during the period | ( | ) | ( | ) | |||||||||||
Change in retirement obligation | |||||||||||||||
Unrealized gain (loss) on derivatives | |||||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | |||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||
See Notes to Consolidated Financial Statements. |
Common Stock | Retained | Accumulated other comprehensive | Treasury stock | ||||||||||||||||||||||
Shares | Amount | Earnings | income (loss) | Shares | Amount | Total | |||||||||||||||||||
Balance at April 1, 2018 | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ||||||||||||||
Net income | |||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | |||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||
Common stock at $0.19 per share | ( | ) | ( | ) | |||||||||||||||||||||
Common stock issued in connection with business combinations | |||||||||||||||||||||||||
Stock options and warrants acquired and converted in connection with business combinations | |||||||||||||||||||||||||
Warrant exercises | ( | ) | |||||||||||||||||||||||
Exercise of stock options, net of shares purchased | ( | ) | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | ( | ) | ( | ) | |||||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ||||||||||||||
Balance at April 1, 2019 | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ||||||||||||||
Impact of cumulative effect of adoption of new accounting principles | |||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||
Common stock at $0.22 per share | ( | ) | ( | ) | |||||||||||||||||||||
Restricted stock awards, net of forfeitures | ( | ) | ( | ) | |||||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Common Stock | Retained | Accumulated other comprehensive | Treasury stock | ||||||||||||||||||||||
Shares | Amount | Earnings | income (loss) | Shares | Amount | Total | |||||||||||||||||||
Balance at January 1, 2018 | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ||||||||||||||
Impact of cumulative effect of adoption of new accounting principles | ( | ) | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | |||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||
Common stock at $0.38 per share | ( | ) | ( | ) | |||||||||||||||||||||
Common stock issued in connection with business combinations | |||||||||||||||||||||||||
Stock options and warrants acquired and converted in connection with business combinations | |||||||||||||||||||||||||
Warrant exercises | ( | ) | |||||||||||||||||||||||
Exercise of stock options, net of shares purchased | ( | ) | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | ( | ) | ( | ) | |||||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ||||||||||||||
Impact of cumulative effect of adoption of new accounting principles | |||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||
Common stock at $0.44 per share | ( | ) | ( | ) | |||||||||||||||||||||
Warrant exercises | ( | ) | |||||||||||||||||||||||
Exercise of stock options, net of shares purchased | ( | ) | |||||||||||||||||||||||
Restricted stock awards, net of forfeitures | ( | ) | ( | ) | |||||||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Six months ended | |||||||
June 30, | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan and lease losses | |||||||
Depreciation and amortization | |||||||
Stock-based compensation expense | |||||||
Pension expense (income) | |||||||
Net amortization (accretion) on investment securities | |||||||
Net (gain) loss on sales of investment securities | |||||||
Originations of loans held for sale | ( | ) | ( | ) | |||
Net gains from sales of loans held for sale | ( | ) | ( | ) | |||
Proceeds from sales of loans held for sale | |||||||
Deferred income taxes | ( | ) | |||||
Amortization of operating leases | |||||||
Payments for operating leases | ( | ) | |||||
Decrease (increase) cash surrender value of life insurance | ( | ) | |||||
Decrease (increase) in interest receivable | ( | ) | ( | ) | |||
(Decrease) increase in interest payable | |||||||
Decrease (increase) in other assets | ( | ) | |||||
(Decrease) increase in other liabilities | |||||||
Net cash provided by (used in) operating activities | |||||||
Investing activities | |||||||
Proceeds from sales of securities available-for-sale | |||||||
Proceeds from calls, paydowns and maturities of securities available-for-sale | |||||||
Purchases of securities available-for-sale | ( | ) | ( | ) | |||
Proceeds from calls, paydowns and maturities of securities held-to-maturity | |||||||
Purchases of securities held-to-maturity | ( | ) | |||||
Purchases of other investment securities | ( | ) | |||||
Net decrease (increase) in interest-bearing deposits with other banks | ( | ) | ( | ) | |||
Net decrease (increase) in loans and leases | ( | ) | ( | ) | |||
Proceeds from disposal of other real estate owned | |||||||
Purchases of premises and equipment | ( | ) | ( | ) | |||
Net cash acquired from business combinations | |||||||
Net cash paid for branch divestitures | ( | ) | |||||
Net cash provided by (used in) investing activities | ( | ) | ( | ) | |||
Financing activities | |||||||
Net (decrease) increase in total deposits | ( | ) | ( | ) | |||
Net (decrease) increase in short-term borrowings | |||||||
Payments on long-term debt | ( | ) | ( | ) | |||
Proceeds from FHLB borrowings | |||||||
Cash dividends paid on common stock | ( | ) | ( | ) | |||
Proceeds from exercise of stock options | |||||||
Net cash provided by (used in) financing activities | |||||||
Cash and due from banks | |||||||
Change in cash and due from banks | ( | ) | |||||
Cash and due from banks at beginning of period | |||||||
Cash and due from banks at end of period | $ | $ | |||||
Supplemental schedule for investing activities | |||||||
Business combinations | |||||||
Assets acquired, net of purchase consideration | $ | $ | |||||
Liabilities assumed | ( | ) | |||||
Goodwill | $ | ( | ) | $ |
Held-to-maturity | Available-for-sale | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized cost | Unrecognized gain | Unrecognized loss | Fair value | Amortized cost | Unrealized gain | Unrealized loss | Fair value | ||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Securities of U.S. government agencies and corporations | ( | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities - residential | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Mortgage-backed securities - commercial | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Obligations of state and other political subdivisions | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Asset-backed securities | ( | ) | ||||||||||||||||||||||||||||||
Other securities | ( | ) | ||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ |
Held-to-maturity | Available-for-sale | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized cost | Unrecognized gain | Unrecognized loss | Fair value | Amortized cost | Unrealized gain | Unrealized loss | Fair value | ||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Securities of U.S. government agencies and corporations | ( | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities - residential | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Mortgage-backed securities - commercial | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Obligations of state and other political subdivisions | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Asset-backed securities | ( | ) | ||||||||||||||||||||||||||||||
Other securities | ( | ) | ||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ |
Held-to-maturity | Available-for-sale | |||||||||||||||
(Dollars in thousands) | Amortized cost | Fair value | Amortized cost | Fair value | ||||||||||||
By Contractual Maturity: | ||||||||||||||||
Due in one year or less | $ | $ | $ | $ | ||||||||||||
Due after one year through five years | ||||||||||||||||
Due after five years through ten years | ||||||||||||||||
Due after ten years | ||||||||||||||||
Mortgage-backed securities - residential | ||||||||||||||||
Mortgage-backed securities - commercial | ||||||||||||||||
Collateralized mortgage obligations | ||||||||||||||||
Asset-backed securities | ||||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2019 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Securities of U.S. Government agencies and corporations | ( | ) | ( | ) | ||||||||||||||||||||
Mortgage-backed securities - residential | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Mortgage-backed securities - commercial | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Collateralized mortgage obligations | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Obligations of state and other political subdivisions | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Asset-backed securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Other securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
December 31, 2018 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
(Dollars in thousands) | value | loss | value | loss | value | loss | ||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||
Securities of U.S. Government agencies and corporations | ( | ) | ( | ) | ||||||||||||||||||||
Mortgage-backed securities - residential | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Mortgage-backed securities - commercial | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Collateralized mortgage obligations | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Obligations of state and other political subdivisions | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Asset-backed securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Other securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
As of June 30, 2019 | ||||||||||||||||||||
Commercial | Real Estate | Lease | ||||||||||||||||||
(Dollars in thousands) | & industrial | Construction | Commercial | financing | Total | |||||||||||||||
Pass | $ | $ | $ | $ | $ | |||||||||||||||
Special Mention | ||||||||||||||||||||
Substandard | ||||||||||||||||||||
Doubtful | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(Dollars in thousands) | Residential real estate | Home equity | Installment | Credit card | Total | |||||||||||||||
Performing | $ | $ | $ | $ | $ | |||||||||||||||
Nonperforming | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
As of December 31, 2018 | ||||||||||||||||||||
Commercial | Real Estate | Lease | ||||||||||||||||||
(Dollars in thousands) | & industrial | Construction | Commercial | financing | Total | |||||||||||||||
Pass | $ | $ | $ | $ | $ | |||||||||||||||
Special Mention | ||||||||||||||||||||
Substandard | ||||||||||||||||||||
Doubtful | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(Dollars in thousands) | Residential real estate | Home equity | Installment | Credit card | Total | |||||||||||||||
Performing | $ | $ | $ | $ | $ | |||||||||||||||
Nonperforming | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
As of June 30, 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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Lease financing | ||||||||||||||||||||||||||||||||||||
Construction real estate | ||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||
Credit card | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Lease financing | ||||||||||||||||||||||||||||||||||||
Construction real estate | ||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||
Credit card | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Three months ended | ||||||||||||||||||||||
June 30, 2019 | June 30, 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 | $ | $ | $ | $ | ||||||||||||||||||
Construction real estate | ||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||
Home equity | ||||||||||||||||||||||
Installment | ||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||
Six months ended | ||||||||||||||||||||||
June 30, 2019 | June 30, 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 | $ | $ | $ | $ | ||||||||||||||||||
Construction real estate | ||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||
Home equity | ||||||||||||||||||||||
Installment | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Extended maturities | $ | $ | $ | $ | ||||||||||||
Adjusted interest rates | ||||||||||||||||
Combination of rate and maturity changes | ||||||||||||||||
Forbearance | ||||||||||||||||
Other (1) | ||||||||||||||||
Total | $ | $ | $ | $ |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||
Impaired loans | ||||||||
Nonaccrual loans (1) | ||||||||
Commercial & industrial | $ | $ | ||||||
Lease financing | ||||||||
Construction real estate | ||||||||
Commercial real estate | ||||||||
Residential real estate | ||||||||
Home equity | ||||||||
Installment | ||||||||
Nonaccrual loans | ||||||||
Accruing troubled debt restructurings | ||||||||
Total impaired loans | $ | $ |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest income effect on impaired loans | ||||||||||||||||
Gross amount of interest that would have been recorded under original terms | $ | $ | $ | $ | ||||||||||||
Interest included in income | ||||||||||||||||
Nonaccrual loans | ||||||||||||||||
Troubled debt restructurings | ||||||||||||||||
Total interest included in income | ||||||||||||||||
Net impact on interest income | $ | $ | $ | $ |
As of June 30, 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 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Lease financing | ||||||||||||||||||||||||
Construction real estate | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Loans with an allowance recorded | ||||||||||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||
Lease financing | ||||||||||||||||||||||||
Construction real estate | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||
Lease financing | ||||||||||||||||||||||||
Construction real estate | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three months ended | ||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
Loans with no related allowance recorded | ||||||||||||||||
Commercial & industrial | $ | $ | $ | $ | ||||||||||||
Lease financing | ||||||||||||||||
Construction real estate | ||||||||||||||||
Commercial real estate | ||||||||||||||||
Residential real estate | ||||||||||||||||
Home equity | ||||||||||||||||
Installment | ||||||||||||||||
Total | ||||||||||||||||
Loans with an allowance recorded | ||||||||||||||||
Commercial & industrial | ||||||||||||||||
Lease financing | ||||||||||||||||
Construction real estate | ||||||||||||||||
Commercial real estate | ||||||||||||||||
Residential real estate | ||||||||||||||||
Home equity | ||||||||||||||||
Installment | ||||||||||||||||
Total | ||||||||||||||||
Total | ||||||||||||||||
Commercial & industrial | ||||||||||||||||
Lease financing | ||||||||||||||||
Construction real estate | ||||||||||||||||
Commercial real estate | ||||||||||||||||
Residential real estate | ||||||||||||||||
Home equity | ||||||||||||||||
Installment | ||||||||||||||||
Total | $ | $ | $ | $ |
Six months ended | ||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
Loans with no related allowance recorded | ||||||||||||||||
Commercial & industrial | $ | $ | $ | $ | ||||||||||||
Lease financing | ||||||||||||||||
Construction real estate | ||||||||||||||||
Commercial real estate | ||||||||||||||||
Residential real estate | ||||||||||||||||
Home equity | ||||||||||||||||
Installment | ||||||||||||||||
Total | ||||||||||||||||
Loans with an allowance recorded | ||||||||||||||||
Commercial & industrial | ||||||||||||||||
Lease financing | ||||||||||||||||
Construction real estate | ||||||||||||||||
Commercial real estate | ||||||||||||||||
Residential real estate | ||||||||||||||||
Home equity | ||||||||||||||||
Installment | ||||||||||||||||
Total | ||||||||||||||||
Total | ||||||||||||||||
Commercial & industrial | ||||||||||||||||
Lease financing | ||||||||||||||||
Construction real estate | ||||||||||||||||
Commercial real estate | ||||||||||||||||
Residential real estate | ||||||||||||||||
Home equity | ||||||||||||||||
Installment | ||||||||||||||||
Total | $ | $ | $ | $ |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Balance at beginning of period | $ | $ | $ | $ | ||||||||||||
Additions | ||||||||||||||||
Commercial & industrial | ||||||||||||||||
Residential real estate | ||||||||||||||||
Total additions | ||||||||||||||||
Disposals | ||||||||||||||||
Commercial & industrial | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Residential real estate | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total disposals | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Valuation adjustment | ||||||||||||||||
Commercial & industrial | ( | ) | ( | ) | ( | ) | ||||||||||
Residential real estate | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total valuation adjustment | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Balance at end of period | $ | $ | $ | $ |
Three months ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Provision for loan and lease losses | ( | ) | ||||||||||||||||||||||||||||||||||
Gross charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||
Total net charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Three months ended June 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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Provision for loan and lease losses | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||
Total net charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Provision for loan and lease losses | ( | ) | ||||||||||||||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||
Total net charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
Ending allowance for loan and lease losses | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Six months ended June 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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Provision for loan and lease losses | ( | ) | ||||||||||||||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||
Total net charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
As of June 30, 2019 | ||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
As of December 31, 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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | |||||
Balance at beginning of year | $ | $ | |||||
Goodwill resulting from business combinations | ( | ) | |||||
Balance at end of period | $ | $ |
Three months ended | Six months ended | |||||||
(dollars in thousands) | June 30, 2019 | June 30, 2019 | ||||||
Operating lease cost | $ | $ | ||||||
Short-term lease cost | ||||||||
Variable lease cost | ||||||||
Total operating lease cost | $ | $ |
(dollars in thousands) | Operating leases | |||
2019 (remaining six months) | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total lease payments | ||||
Less imputed interest | ||||
Total | $ |
Operating leases | |||
Weighted-average remaining lease term | |||
Weighted-average discount rate | % |
Six months ended | ||||
(dollars in thousands) | June 30, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ | |||
ROU assets obtained in exchange for lease obligations | ||||
Operating leases |
(Dollars in thousands) | Overnight and continuous | |||
Repurchase agreements | ||||
Mortgage-backed securities | $ | |||
Collateralized mortgage obligations | ||||
Total | $ |
June 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in thousands) | Amount | Average rate | Amount | Average rate | ||||||||||
Subordinated notes | $ | % | $ | % | ||||||||||
Unamortized debt issuance costs | ( | ) | N/A | ( | ) | N/A | ||||||||
FHLB borrowings | % | % | ||||||||||||
Capital loan with municipality | % | % | ||||||||||||
Total long-term debt | $ | % | $ | % |
Three months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Prior to reclass | Reclass from | Pre-tax | Tax effect | Net of tax | Beginning balance | Net activity | Ending balance | ||||||||||||||||||||||||
Unrealized gain (loss) on debt securities | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||
Unrealized gain (loss) on derivatives | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Retirement obligation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ |
Three months ended June 30, 2018 | ||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Prior to reclass | Reclass from | Pre-tax | Tax effect | Net of tax | Beginning balance | Net activity | Ending balance | ||||||||||||||||||||||||
Unrealized gain (loss) on debt securities | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||
Unrealized gain (loss) on derivatives | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Retirement obligation | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Total | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||
Total other comprehensive income | Total accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Prior to reclass | Reclass from | Pre-tax | Tax effect | Net of tax | Beginning balance | Net activity | Cumulative effect of new standard | Ending balance | |||||||||||||||||||||||||||
Unrealized gain (loss) on debt securities | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||
Unrealized gain (loss) on derivatives | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Retirement obligation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | $ |
Six months ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Total other comprehensive income | Total accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Prior to reclass | Reclass from | Pre-tax | Tax effect | Net of tax | Beginning balance | Net activity | Cumulative effect of new standard | Ending balance | |||||||||||||||||||||||||||
Unrealized gain (loss) on debt securities | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||
Unrealized gain (loss) on derivatives | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Retirement obligation | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Total | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Amount reclassified from accumulated other comprehensive income (1) | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | Affected Line Item in the Consolidated Statements of Income | |||||||||||||
Realized gain (loss) on securities available-for-sale | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | Net gain (loss) on sales of investments securities | |||||
Defined benefit pension plan | ||||||||||||||||||
Amortization of prior service cost (2) | Other noninterest expense | |||||||||||||||||
Recognized net actuarial loss (2) | ( | ) | ( | ) | ( | ) | ( | ) | Other noninterest expense | |||||||||
Defined benefit pension plan total | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Total reclassifications for the period, before tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Estimated fair value | Estimated fair value | |||||||||||||||||||||||||
(Dollars in thousands) | Balance sheet classification | Notional amount | Gain | Loss | Notional amount | Gain | Loss | |||||||||||||||||||
Client derivatives - instruments associated with loans | ||||||||||||||||||||||||||
Matched interest rate swaps with borrower | Accrued interest and other assets | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | |||||||||||||||
Matched interest rate swaps with counterparty | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
(Dollars in thousands) | Gross amounts of recognized liabilities | Gross amounts offset in the Consolidated Balance Sheets | Net amounts of liabilities (assets) presented in the Consolidated Balance Sheets | Gross amounts of recognized liabilities | Gross amounts offset in the Consolidated Balance Sheets | Net amounts of liabilities (assets) presented in the Consolidated Balance Sheets | ||||||||||||||||||
Client derivatives | ||||||||||||||||||||||||
Matched interest rate swaps with counterparty | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ |
Weighted-average rate | ||||||||||||||||
(Dollars in thousands) | Notional amount | Average maturity (years) | Fair value | Receive | Pay | |||||||||||
Client derivatives | ||||||||||||||||
Receive fixed, matched interest rate swaps with borrower | $ | $ | % | % | ||||||||||||
Pay fixed, matched interest rate swaps with counterparty | ( | ) | % | % | ||||||||||||
Total client derivatives | $ | $ | ( | ) | % | % |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost | ||||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of prior service cost | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net actuarial loss | ||||||||||||||||
Net periodic benefit cost (income) | $ | $ | $ | $ |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator | ||||||||||||||||
Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||
Denominator | ||||||||||||||||
Basic earnings per common share - weighted average shares | ||||||||||||||||
Effect of dilutive securities | ||||||||||||||||
Employee stock awards | ||||||||||||||||
Warrants | ||||||||||||||||
Diluted earnings per common share - adjusted weighted average shares | ||||||||||||||||
Earnings per share available to common shareholders | ||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||
Diluted | $ | $ | $ | $ |
Carrying | Estimated fair value | |||||||||||||||||||
(Dollars in thousands) | value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and short-term investments | $ | $ | $ | $ | $ | |||||||||||||||
Investment securities held-to-maturity | ||||||||||||||||||||
Other investments | N/A | N/A | N/A | N/A | ||||||||||||||||
Loans held for sale | ||||||||||||||||||||
Loans and leases | ||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||
Long-term debt | ||||||||||||||||||||
Accrued interest payable |
Carrying | Estimated fair value | |||||||||||||||||||
(Dollars in thousands) | value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and short-term investments | $ | $ | $ | $ | $ | |||||||||||||||
Investment securities held-to-maturity | ||||||||||||||||||||
Other investments | N/A | N/A | N/A | N/A | ||||||||||||||||
Loans held for sale | ||||||||||||||||||||
Loans and leases | ||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||
Long-term debt | ||||||||||||||||||||
Accrued interest payable |
Fair value measurements using | ||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Assets/liabilities at fair value | ||||||||||||
June 30, 2019 | ||||||||||||||||
Assets | ||||||||||||||||
Derivatives | $ | $ | $ | $ | ||||||||||||
Investment securities available-for-sale | ||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||
Liabilities | ||||||||||||||||
Derivatives | $ | $ | $ | $ |
Fair value measurements using | ||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Assets/liabilities at fair value | ||||||||||||
December 31, 2018 | ||||||||||||||||
Assets | ||||||||||||||||
Derivatives | $ | $ | $ | $ | ||||||||||||
Investment securities available-for-sale | ||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||
Liabilities | ||||||||||||||||
Derivatives | $ | $ | $ | $ |
Three months ended | Six months ended | |||||||
(dollars in thousands) | June 30, 2019 | June 30, 2019 | ||||||
Beginning balance | $ | $ | ||||||
Accretion (amortization) | ( | ) | ( | ) | ||||
Increase (decrease) in fair value | ||||||||
Settlements | ( | ) | ||||||
Ending balance | $ | $ |
Fair value measurements using | ||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||
June 30, 2019 | ||||||||||||
Assets | ||||||||||||
Impaired loans | $ | $ | $ | |||||||||
OREO |
Fair value measurements using | ||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||
December 31, 2018 | ||||||||||||
Assets | ||||||||||||
Impaired loans | $ | $ | $ | |||||||||
OREO |
(Dollars in thousands) | MainSource | ||
Purchase consideration | |||
Cash consideration | $ | ||
Stock consideration | |||
Warrant consideration | |||
Options consideration | |||
Total purchase consideration | |||
Assets acquired | |||
Cash | |||
Investment securities available-for-sale | |||
Investment securities held-to-maturity | |||
Other investments | |||
Loans | |||
Premises and equipment | |||
Intangible assets | |||
Other assets | |||
Assets held for sale | |||
Total assets acquired | |||
Liabilities assumed | |||
Deposits | |||
Subordinated notes | |||
FHLB advances | |||
Other borrowings | |||
Other liabilities | |||
Liabilities held for sale | |||
Total liabilities assumed | |||
Net identifiable assets | |||
Goodwill | $ |
Twelve months ended | ||||||||
December 31, | ||||||||
(Dollars in thousands, except per share data) | 2018 | 2017 | ||||||
Pro Forma Condensed Combined Income Statement Information | ||||||||
Net interest income | $ | $ | ||||||
Net income | ||||||||
Basic earnings per share | ||||||||
Diluted earnings per share |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net interest income | $ | 122,302 | $ | 123,979 | $ | 243,817 | $ | 199,791 | ||||||||
Tax equivalent adjustment | 1,416 | 1,420 | 2,939 | 2,138 | ||||||||||||
Net interest income - tax equivalent | $ | 123,718 | $ | 125,399 | $ | 246,756 | $ | 201,929 | ||||||||
Average earning assets | $ | 12,294,911 | $ | 12,120,000 | $ | 12,229,694 | $ | 10,115,063 | ||||||||
Net interest margin (1) | 3.99 | % | 4.10 | % | 4.02 | % | 3.98 | % | ||||||||
Net interest margin (fully tax equivalent) (1) | 4.04 | % | 4.15 | % | 4.07 | % | 4.03 | % |
Quarterly Averages | Year-to-Date Averages | |||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||
(Dollars in thousands) | Balance | Yield | Balance | Yield | Balance | Yield | Balance | Yield | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||
Investment securities | $ | 3,408,994 | 3.29 | % | $ | 3,157,339 | 3.16 | % | $ | 3,382,510 | 3.37 | % | $ | 2,603,139 | 3.12 | % | ||||||||||||
Interest-bearing deposits with other banks | 33,255 | 2.48 | % | 29,261 | 2.43 | % | 33,978 | 2.47 | % | 28,173 | 2.03 | % | ||||||||||||||||
Gross loans (1) | 8,852,662 | 5.73 | % | 8,933,400 | 5.49 | % | 8,813,206 | 5.71 | % | 7,483,751 | 5.31 | % | ||||||||||||||||
Total earning assets | 12,294,911 | 5.04 | % | 12,120,000 | 4.88 | % | 12,229,694 | 5.05 | % | 10,115,063 | 4.74 | % | ||||||||||||||||
Nonearning assets | ||||||||||||||||||||||||||||
Allowance for loan and lease losses | (58,335 | ) | (55,318 | ) | (57,715 | ) | (55,168 | ) | ||||||||||||||||||||
Cash and due from banks | 173,278 | 224,824 | 177,463 | 170,760 | ||||||||||||||||||||||||
Accrued interest and other assets | 1,692,879 | 1,666,854 | 1,678,616 | 1,176,774 | ||||||||||||||||||||||||
Total assets | $ | 14,102,733 | $ | 13,956,360 | $ | 14,028,058 | $ | 11,407,429 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Interest-bearing demand | $ | 2,334,322 | 0.60 | % | $ | 2,573,150 | 0.36 | % | $ | 2,302,313 | 0.55 | % | $ | 1,997,574 | 0.37 | % | ||||||||||||
Savings | 3,057,100 | 0.78 | % | 3,196,059 | 0.54 | % | 3,086,167 | 0.77 | % | 2,825,437 | 0.58 | % | ||||||||||||||||
Time | 2,220,724 | 2.02 | % | 2,192,196 | 1.50 | % | 2,222,645 | 1.98 | % | 1,831,323 | 1.47 | % | ||||||||||||||||
Total interest-bearing deposits | 7,612,146 | 1.09 | % | 7,961,405 | 0.75 | % | 7,611,125 | 1.06 | % | 6,654,334 | 0.76 | % | ||||||||||||||||
Borrowed funds | ||||||||||||||||||||||||||||
Short-term borrowings | 1,109,865 | 2.40 | % | 916,617 | 1.81 | % | 1,063,749 | 2.39 | % | 829,048 | 1.65 | % | ||||||||||||||||
Long-term debt | 546,705 | 3.64 | % | 491,407 | 3.65 | % | 558,262 | 3.61 | % | 309,883 | 3.94 | % | ||||||||||||||||
Total borrowed funds | 1,656,570 | 2.81 | % | 1,408,024 | 2.45 | % | 1,622,011 | 2.81 | % | 1,138,931 | 2.28 | % | ||||||||||||||||
Total interest-bearing liabilities | 9,268,716 | 1.39 | % | 9,369,429 | 1.00 | % | 9,233,136 | 1.36 | % | 7,793,265 | 0.98 | % | ||||||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 2,484,214 | 2,421,230 | 2,470,974 | 1,998,251 | ||||||||||||||||||||||||
Other liabilities | 202,806 | 165,608 | 203,186 | 148,172 | ||||||||||||||||||||||||
Shareholders' equity | 2,146,997 | 2,000,093 | 2,120,762 | 1,467,741 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 14,102,733 | $ | 13,956,360 | $ | 14,028,058 | $ | 11,407,429 | ||||||||||||||||||||
Net interest income | $ | 122,302 | $ | 123,979 | $ | 243,817 | $ | 199,791 | ||||||||||||||||||||
Net interest spread | 3.65 | % | 3.88 | % | 3.69 | % | 3.76 | % | ||||||||||||||||||||
Contribution of noninterest-bearing sources of funds | 0.34 | % | 0.22 | % | 0.33 | % | 0.22 | % | ||||||||||||||||||||
Net interest margin (2) | 3.99 | % | 4.10 | % | 4.02 | % | 3.98 | % | ||||||||||||||||||||
Tax equivalent adjustment | 0.05 | % | 0.05 | % | 0.05 | % | 0.05 | % | ||||||||||||||||||||
Net interest margin (fully tax equivalent) (2) | 4.04 | % | 4.15 | % | 4.07 | % | 4.03 | % |
Changes for the three months ended June 30, 2019 | Changes for the six months ended June 30, 2019 | |||||||||||||||||||||||
Comparable quarter income variance | Comparable quarter income variance | |||||||||||||||||||||||
(Dollars in thousands) | Rate | Volume | Total | Rate | Volume | Total | ||||||||||||||||||
Earning assets | ||||||||||||||||||||||||
Investment securities | $ | 977 | $ | 2,063 | $ | 3,040 | $ | 3,200 | $ | 13,006 | $ | 16,206 | ||||||||||||
Interest-bearing deposits with other banks | 4 | 25 | 29 | 61 | 71 | 132 | ||||||||||||||||||
Gross loans (1) | 5,227 | (1,152 | ) | 4,075 | 14,586 | 37,625 | 52,211 | |||||||||||||||||
Total earning assets | 6,208 | 936 | 7,144 | 17,847 | 50,702 | 68,549 | ||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Total interest-bearing deposits | 6,764 | (946 | ) | 5,818 | 9,753 | 5,010 | 14,763 | |||||||||||||||||
Borrowed funds | ||||||||||||||||||||||||
Short-term borrowings | 1,357 | 1,157 | 2,514 | 3,030 | 2,781 | 5,811 | ||||||||||||||||||
Long-term debt | (13 | ) | 502 | 489 | (502 | ) | 4,451 | 3,949 | ||||||||||||||||
Total borrowed funds | 1,344 | 1,659 | 3,003 | 2,528 | 7,232 | 9,760 | ||||||||||||||||||
Total interest-bearing liabilities | 8,108 | 713 | 8,821 | 12,281 | 12,242 | 24,523 | ||||||||||||||||||
Net interest income | $ | (1,900 | ) | $ | 223 | $ | (1,677 | ) | $ | 5,566 | $ | 38,460 | $ | 44,026 |
Three months ended | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
(Dollars in thousands) | June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | |||||||||||||||
Nonperforming loans, nonperforming assets, and underperforming assets | ||||||||||||||||||||
Nonaccrual loans (1) | ||||||||||||||||||||
Commercial and industrial | $ | 18,502 | $ | 19,263 | $ | 30,925 | $ | 4,310 | $ | 3,448 | ||||||||||
Lease financing | 295 | 301 | 22 | 0 | 0 | |||||||||||||||
Construction real estate | 6 | 7 | 9 | 10 | 24 | |||||||||||||||
Commercial real estate | 15,981 | 21,082 | 20,500 | 20,338 | 21,593 | |||||||||||||||
Residential real estate | 11,627 | 13,052 | 13,495 | 11,365 | 9,278 | |||||||||||||||
Home equity | 4,745 | 5,581 | 5,580 | 6,018 | 5,820 | |||||||||||||||
Installment | 195 | 170 | 169 | 327 | 299 | |||||||||||||||
Nonaccrual loans | 51,351 | 59,456 | 70,700 | 42,368 | 40,462 | |||||||||||||||
Accruing troubled debt restructurings | 37,420 | 22,817 | 16,109 | 20,313 | 21,839 | |||||||||||||||
Total nonperforming loans | 88,771 | 82,273 | 86,809 | 62,681 | 62,301 | |||||||||||||||
Other real estate owned | 1,421 | 1,665 | 1,401 | 1,918 | 1,853 | |||||||||||||||
Total nonperforming assets | 90,192 | 83,938 | 88,210 | 64,599 | 64,154 | |||||||||||||||
Accruing loans past due 90 days or more | 107 | 178 | 63 | 144 | 327 | |||||||||||||||
Total underperforming assets | $ | 90,299 | $ | 84,116 | $ | 88,273 | $ | 64,743 | $ | 64,481 | ||||||||||
Total classified assets | $ | 147,753 | $ | 142,014 | $ | 131,668 | $ | 138,868 | $ | 139,317 | ||||||||||
Credit quality ratios | ||||||||||||||||||||
Allowance for loan and lease losses to | ||||||||||||||||||||
Nonaccrual loans | 119.86 | % | 95.40 | % | 79.97 | % | 136.22 | % | 133.65 | % | ||||||||||
Nonperforming loans | 69.33 | % | 68.94 | % | 65.13 | % | 92.08 | % | 86.80 | % | ||||||||||
Total ending loans | 0.69 | % | 0.64 | % | 0.64 | % | 0.65 | % | 0.61 | % | ||||||||||
Nonperforming loans to total loans | 0.99 | % | 0.93 | % | 0.98 | % | 0.71 | % | 0.70 | % | ||||||||||
Nonperforming assets to | ||||||||||||||||||||
Ending loans, plus OREO | 1.00 | % | 0.95 | % | 1.00 | % | 0.73 | % | 0.72 | % | ||||||||||
Total assets | 0.62 | % | 0.60 | % | 0.63 | % | 0.47 | % | 0.46 | % | ||||||||||
Nonperforming assets, excluding accruing TDRs to | ||||||||||||||||||||
Ending loans, plus OREO | 0.59 | % | 0.69 | % | 0.82 | % | 0.50 | % | 0.48 | % | ||||||||||
Total assets | 0.37 | % | 0.43 | % | 0.52 | % | 0.32 | % | 0.30 | % | ||||||||||
Classified assets to total assets | 1.02 | % | 1.01 | % | 0.94 | % | 1.00 | % | 1.00 | % | ||||||||||
(1) Nonaccrual loans include nonaccrual TDRs of $11.0 million, $13.1 million, $22.4 million, $4.7 million and $5.9 million as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. |
First Financial Bancorp | First Financial Bank | |
Senior Unsecured Debt | BBB+ | A- |
Subordinated Debt | BBB | BBB+ |
Short-Term Debt | K2 | K2 |
Deposit | N/A | A- |
Short-Term Deposit | N/A | K2 |
Actual | Minimum capital required - Basel III | PCA requirement to be considered well capitalized | |||||||||||||||||||
(Dollars in thousands) | Capital amount | Ratio | Capital amount | Ratio | Capital amount | Ratio | |||||||||||||||
June 30, 2019 | |||||||||||||||||||||
Common equity Tier 1 capital to risk-weighted assets | |||||||||||||||||||||
Consolidated | $ | 1,281,407 | 12.00 | % | $ | 747,208 | 7.00 | % | N/A | N/A | |||||||||||
First Financial Bank | 1,314,659 | 12.33 | % | 746,584 | 7.00 | % | $ | 693,257 | 6.50 | % | |||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||||||
Consolidated | 1,323,906 | 12.40 | % | 907,323 | 8.50 | % | N/A | N/A | |||||||||||||
First Financial Bank | 1,314,763 | 12.33 | % | 906,566 | 8.50 | % | 853,239 | 8.00 | % | ||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||||||
Consolidated | 1,515,383 | 14.20 | % | 1,120,811 | 10.50 | % | N/A | N/A | |||||||||||||
First Financial Bank | 1,384,436 | 12.98 | % | 1,119,876 | 10.50 | % | 1,066,549 | 10.00 | % | ||||||||||||
Leverage ratio | |||||||||||||||||||||
Consolidated | 1,323,906 | 10.02 | % | 528,264 | 4.00 | % | N/A | N/A | |||||||||||||
First Financial Bank | 1,314,763 | 9.97 | % | 527,595 | 4.00 | % | 659,494 | 5.00 | % |
Actual | Minimum capital required - Basel III | Required to be considered well capitalized | Minimum capital required - Basel III fully phased-in | |||||||||||||||||||||||||
(Dollars in thousands) | Capital amount | Ratio | Capital amount | Ratio | Capital amount | Ratio | Capital amount | Ratio | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||
Consolidated | $ | 1,215,613 | 11.87 | % | $ | 652,874 | 6.38 | % | N/A | N/A | $ | 716,881 | 7.00 | % | ||||||||||||||
First Financial Bank | 1,279,492 | 12.50 | % | 652,590 | 6.38 | % | $ | 665,386 | 6.50 | % | 716,570 | 7.00 | % | |||||||||||||||
Tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||
Consolidated | 1,257,366 | 12.28 | % | 806,491 | 7.88 | % | N/A | N/A | 870,499 | 8.50 | % | |||||||||||||||||
First Financial Bank | 1,279,596 | 12.50 | % | 806,141 | 7.88 | % | 818,937 | 8.00 | % | 870,120 | 8.50 | % | ||||||||||||||||
Total capital to risk-weighted assets | ||||||||||||||||||||||||||||
Consolidated | 1,444,146 | 14.10 | % | 1,011,314 | 9.88 | % | N/A | N/A | 1,075,322 | 10.50 | % | |||||||||||||||||
First Financial Bank | 1,344,388 | 13.13 | % | 1,010,875 | 9.88 | % | 1,023,671 | 10.00 | % | 1,074,855 | 10.50 | % | ||||||||||||||||
Leverage ratio | ||||||||||||||||||||||||||||
Consolidated | 1,257,366 | 9.71 | % | 517,958 | 4.00 | % | N/A | N/A | 517,958 | 4.00 | % | |||||||||||||||||
First Financial Bank | 1,279,596 | 9.89 | % | 517,710 | 4.00 | % | 647,138 | 5.00 | % | 517,710 | 4.00 | % |
Three months ended | Six months ended | |||||||||||||||||||||||||||
2019 | 2018 | June 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | 2019 | 2018 | |||||||||||||||||||||
Allowance for loan and lease loss activity | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 56,722 | $ | 56,542 | $ | 57,715 | $ | 54,076 | $ | 54,380 | $ | 56,542 | $ | 54,021 | ||||||||||||||
Provision for loan losses | 6,658 | 14,083 | 5,310 | 3,238 | 3,735 | 20,741 | 6,038 | |||||||||||||||||||||
Gross charge-offs | ||||||||||||||||||||||||||||
Commercial and industrial | 1,873 | 12,328 | 6,060 | 232 | 4,356 | 14,201 | 5,241 | |||||||||||||||||||||
Lease financing | 0 | 100 | 0 | 0 | 0 | 100 | 0 | |||||||||||||||||||||
Construction real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Commercial real estate | 86 | 1,214 | 1,679 | 902 | 78 | 1,300 | 2,254 | |||||||||||||||||||||
Residential real estate | 150 | 82 | 80 | 145 | 101 | 232 | 197 | |||||||||||||||||||||
Home equity | 689 | 468 | 747 | 351 | 385 | 1,157 | 627 | |||||||||||||||||||||
Installment | 78 | 49 | 158 | 43 | 218 | 127 | 234 | |||||||||||||||||||||
Credit card | 289 | 341 | 392 | 390 | 684 | 630 | 938 | |||||||||||||||||||||
Total gross charge-offs | 3,165 | 14,582 | 9,116 | 2,063 | 5,822 | 17,747 | 9,491 | |||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||
Commercial and industrial | 291 | 240 | 485 | 627 | 518 | 531 | 954 | |||||||||||||||||||||
Lease financing | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||
Construction real estate | 5 | 63 | 0 | 146 | 0 | 68 | 0 | |||||||||||||||||||||
Commercial real estate | 254 | 73 | 1,681 | 786 | 887 | 327 | 1,639 | |||||||||||||||||||||
Residential real estate | 101 | 36 | 44 | 71 | 70 | 137 | 96 | |||||||||||||||||||||
Home equity | 572 | 185 | 274 | 419 | 187 | 757 | 616 | |||||||||||||||||||||
Installment | 61 | 48 | 94 | 351 | 82 | 109 | 130 | |||||||||||||||||||||
Credit card | 50 | 34 | 55 | 64 | 38 | 84 | 72 | |||||||||||||||||||||
Total recoveries | 1,334 | 679 | 2,633 | 2,464 | 1,783 | 2,013 | 3,508 | |||||||||||||||||||||
Total net charge-offs | 1,831 | 13,903 | 6,483 | (401 | ) | 4,039 | 15,734 | 5,983 | ||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 61,549 | $ | 56,722 | $ | 56,542 | $ | 57,715 | $ | 54,076 | $ | 61,549 | $ | 54,076 | ||||||||||||||
Net charge-offs to average loans and leases (annualized) | ||||||||||||||||||||||||||||
Commercial and industrial | 0.25 | % | 1.95 | % | 0.92 | % | (0.07 | )% | 0.64 | % | 1.09 | % | 0.33 | % | ||||||||||||||
Lease financing | 0.00 | % | 0.45 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.22 | % | 0.00 | % | ||||||||||||||
Construction real estate | 0.00 | % | (0.05 | )% | 0.00 | % | (0.10 | )% | 0.00 | % | (0.03 | )% | 0.00 | % | ||||||||||||||
Commercial real estate | (0.02 | )% | 0.12 | % | 0.00 | % | 0.01 | % | (0.08 | )% | 0.05 | % | 0.04 | % | ||||||||||||||
Residential real estate | 0.02 | % | 0.02 | % | 0.02 | % | 0.03 | % | 0.01 | % | 0.02 | % | 0.03 | % | ||||||||||||||
Home equity | 0.06 | % | 0.14 | % | 0.23 | % | (0.03 | )% | 0.10 | % | 0.10 | % | 0.00 | % | ||||||||||||||
Installment | 0.08 | % | 0.00 | % | 0.27 | % | (1.22 | )% | 0.55 | % | 0.04 | % | 0.22 | % | ||||||||||||||
Credit card | 1.92 | % | 2.62 | % | 2.76 | % | 2.68 | % | 5.54 | % | 2.26 | % | 3.67 | % | ||||||||||||||
Total net charge-offs | 0.08 | % | 0.64 | % | 0.29 | % | (0.02 | )% | 0.18 | % | 0.36 | % | 0.16 | % |
% Change from base case for immediate parallel changes in rates | ||||||||
-100 bps | +100 bps | +200 bps | ||||||
NII-Year 1 | (6.45 | )% | 3.98 | % | 6.60 | % | ||
NII-Year 2 | (7.43 | )% | 4.09 | % | 6.82 | % | ||
EVE | (5.01 | )% | 2.75 | % | 4.30 | % |
Beta sensitivity (% change from base) | |||||||||||
+100 BP | +200 BP | ||||||||||
Beta 25% lower | Beta 25% higher | Beta 25% lower | Beta 25% higher | ||||||||
NII-Year 1 | 4.89 | % | 3.08 | % | 7.48 | % | 5.72 | % | |||
NII-Year 2 | 4.99 | % | 3.19 | % | 7.69 | % | 5.95 | % |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(c) | The following table shows the total number of shares repurchased in the second quarter of 2019. |
(a) | (b) | (c) | (d) | ||||||||||
Period | Total Number Of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans (2) | Maximum Number of Shares that may yet be purchased Under the Plans | |||||||||
April 1 to April 30, 2019 | |||||||||||||
Share repurchase program | 0 | $ | 0.00 | 0 | 5,000,000 | ||||||||
Stock Plans | 0 | 0.00 | N/A | N/A | |||||||||
May 1 to May 31, 2019 | |||||||||||||
Share repurchase program | 0 | $ | 0.00 | 0 | 5,000,000 | ||||||||
Stock Plans | 0 | 0.00 | N/A | N/A | |||||||||
June 1 to June 30, 2019 | |||||||||||||
Share repurchase program | 0 | $ | 0.00 | 0 | 5,000,000 | ||||||||
Stock Plans | 0 | 0.00 | N/A | N/A | |||||||||
Total | |||||||||||||
Share repurchase program | 0 | $ | 0.00 | 0 | |||||||||
Stock Plans | 0 | $ | 0.00 | N/A |
(1) | The number of shares purchased in column (a) and the average price paid per share in column (b) include the purchase of shares other than through publicly announced plans. The shares purchased other than through publicly announced plans were purchased pursuant to First Financial’s Amended and Restated 2012 Stock Plan (collectively referred to hereafter as the Stock Plan). The table shows the number of shares purchased pursuant to the Stock Plan and the average price paid per share. Under the Stock Plan, shares were purchased from plan participants at the then current market value in satisfaction of stock option exercise prices. |
(2) | First Financial has one previously announced stock repurchase plan under which it is authorized to purchase shares of its common stock. The plan will continue for 24 months following its adoption by the Board of Directors and approval by regulatory authorities. The table that follows provides additional information regarding this plan. |
Approval Date | Total Shares Approved for Repurchase | Total Shares Repurchased Under the Plan | Expiration Date | |||||
1/8/2019 | 5,000,000 | 0 | None |
(a) | Exhibits: | |
Exhibit Number | ||
1.1 | ||
3.1 | ||
3.2 | ||
10.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.1 | Financial statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2019, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders' Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, as blocks of text and in detail.* |
FIRST FINANCIAL BANCORP. | ||||||
(Registrant) | ||||||
/s/ James M. Anderson | /s/ Scott T. Crawley | |||||
James M. Anderson | Scott T. Crawley | |||||
Executive Vice President and Chief Financial Officer | First Vice President and Controller | |||||
(Principal Accounting Officer) | ||||||
Date | 8/6/2019 | Date | 8/6/2019 |
1. | I have reviewed this quarterly report on Form 10-Q of First Financial Bancorp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | 8/6/2019 | /s/ Archie M. Brown, Jr. | |
Archie M. Brown, Jr. President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of First Financial Bancorp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | 8/6/2019 | /s/ James M. Anderson | |
James M. Anderson Executive Vice President and Chief Financial Officer |
(1) | The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Archie M. Brown, Jr. |
Archie M. Brown, Jr. President and Chief Executive Officer |
August 6, 2019 |
(1) | The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ James M. Anderson |
James M. Anderson Executive Vice President and Chief Financial Officer |
August 6, 2019 |
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 3,104,152 | $ 2,792,326 |
Debt Securities, Held-to-maturity, Fair Value | $ 153,039 | $ 424,118 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 160,000,000 | 160,000,000 |
Common Stock, Shares, Issued | 104,281,794 | 104,281,794 |
Treasury Stock, Shares | 5,634,104 | 6,387,508 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Interest income | ||||
Loans, including fees | $ 126,365 | $ 122,290 | $ 249,421 | $ 197,210 |
Investment securities | ||||
Taxable | 23,616 | 20,844 | 47,851 | 34,514 |
Tax-exempt | 4,336 | 4,068 | 8,594 | 5,725 |
Total interest on investment securities | 27,952 | 24,912 | 56,445 | 40,239 |
Other earning assets | 206 | 177 | 416 | 284 |
Total interest income | 154,523 | 147,379 | 306,282 | 237,733 |
Interest expense | ||||
Deposits | 20,612 | 14,794 | 39,855 | 25,092 |
Short-term borrowings | 6,646 | 4,132 | 12,606 | 6,795 |
Long-term borrowings | 4,963 | 4,474 | 10,004 | 6,055 |
Total interest expense | 32,221 | 23,400 | 62,465 | 37,942 |
Net interest income | 122,302 | 123,979 | 243,817 | 199,791 |
Provision for Loan and Lease Losses | 6,658 | 3,735 | 20,741 | 6,038 |
Net interest income after provision for loan and lease losses | 115,644 | 120,244 | 223,076 | 193,753 |
Noninterest income | ||||
Service Charges on Deposit Accounts | 9,819 | 9,568 | 18,722 | 14,607 |
Trust and wealth management fees | 3,943 | 3,697 | 8,013 | 7,651 |
Bankcard income | 6,497 | 5,343 | 12,083 | 8,737 |
Client derivative fees | 4,905 | 1,463 | 6,609 | 3,220 |
Net gain from sales of loans | 3,432 | 2,316 | 5,322 | 2,904 |
Net gain (loss) on sales/transfers of investment securities | (37) | (30) | (215) | (30) |
Other | 6,079 | 5,899 | 10,931 | 8,105 |
Total noninterest income | 34,638 | 28,256 | 61,465 | 45,194 |
Noninterest expenses | ||||
Salaries and employee benefits | 53,985 | 55,531 | 101,897 | 86,633 |
Net occupancy | 5,596 | 6,631 | 12,226 | 11,128 |
Furniture and equipment | 4,222 | 5,298 | 7,638 | 7,338 |
Data processing | 4,984 | 14,304 | 10,111 | 17,976 |
Marketing | 1,976 | 2,644 | 3,582 | 3,445 |
Communication | 747 | 1,118 | 1,475 | 1,577 |
Professional services | 2,039 | 5,659 | 4,291 | 7,857 |
State intangible tax | 1,307 | 1,078 | 2,617 | 1,843 |
FDIC assessments | 1,065 | 1,323 | 2,015 | 2,217 |
Amortization of Intangible Assets | 2,044 | 2,364 | 4,089 | 2,644 |
Other | 6,413 | 6,805 | 12,936 | 12,385 |
Total noninterest expenses | 84,378 | 102,755 | 162,877 | 155,043 |
Income before income taxes | 65,904 | 45,745 | 121,664 | 83,904 |
Income tax expense | 13,201 | 9,327 | 23,122 | 16,980 |
Net income | $ 52,703 | $ 36,418 | $ 98,542 | $ 66,924 |
Earnings per common share | ||||
Basic | $ 0.54 | $ 0.37 | $ 1.01 | $ 0.84 |
Diluted | 0.53 | 0.37 | 1.00 | 0.83 |
Cash dividends declared per share | $ 0.22 | $ 0.19 | $ 0.44 | $ 0.38 |
Average common shares outstanding - basic | 98,083,799 | 97,347,533 | 98,005,379 | 79,599,709 |
Average common shares outstanding - diluted | 98,648,384 | 98,432,072 | 98,542,947 | 80,629,495 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 52,703 | $ 36,418 | $ 98,542 | $ 66,924 |
Other comprehensive (loss) income, net of tax | ||||
Unrealized gain (loss) on debt securities arising during the period | 24,510 | (8,978) | 48,015 | (18,808) |
Change in retirement obligation | 246 | 494 | 536 | 817 |
Unrealized gain (loss) on derivatives | 72 | 159 | 144 | 315 |
Other comprehensive income (loss) | 24,828 | (8,325) | 48,695 | (17,676) |
Comprehensive income | $ 77,531 | $ 28,093 | $ 147,237 | $ 49,248 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Common Stock, Dividends, Per Share, Declared | $ 0.22 | $ 0.19 | $ 0.44 | $ 0.38 |
BASIS OF PRESENTATION |
6 Months Ended |
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Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly-owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications of prior periods' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings. The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. These estimates, assumptions and judgments are inherently subjective and may be susceptible to significant change. Actual realized amounts could differ materially from these estimates. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and accompanying notes necessary to constitute a complete set of financial statements required by GAAP and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Management believes these unaudited consolidated financial statements reflect all adjustments of a normal recurring nature which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. The Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements in the Company’s 2018 Form 10-K.
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RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS |
6 Months Ended |
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Jun. 30, 2019 | |
Recently Adopted and Issued Accounting Standards [Abstract] | |
Recently Adopted and Issued Accounting Standards Disclosure [Text Block] | RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS Accounting Guidance Adopted in 2019 In February 2016, the FASB issued an update (ASU 2016-02, Leases) which requires lessees to record most leases on their balance sheet and recognize leasing expenses in the income statement. Operating leases where the Bank is the lessee, except for short-term leases that are subject to an accounting policy election, were recorded on the balance sheet by establishing a lease liability and corresponding ROU asset. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component and the option not to recognize ROU assets and lease liabilities that arise from short-term leases. The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of ROU assets. The guidance in this ASU became effective January 1, 2019 at which time the Company recorded on the Consolidated Balance Sheet an ROU asset of $60.2 million and a lease liability of $65.8 million. For further detail, see Note 7 – Leases. In March 2017, the FASB issued an update (ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities) which amended the amortization period for certain purchased callable debt securities held at a premium and shortens the amortization period for the premium to the earliest call date rather than as an adjustment of yield over the contractual life of the instrument. This update more closely aligns the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities, as in most cases, market participants price securities to the call date that produces the worst yield when the coupon is above current market rates (that is, the security is trading at a premium) and price securities to maturity when the coupon is below market rates (that is, the security is trading at a discount) in anticipation that the borrower will act in its economic best interest in an attempt to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. The guidance in this ASU became effective in January 1, 2019 and did not have a material impact on the Consolidated Financial Statements. In August 2017, the FASB issued an update (ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities) to better align financial reporting for hedging activities with the economic objectives of those activities. This update aligns certain aspects of hedge documentation, effectiveness assessments, accounting and disclosures and expands permissible hedge strategies as of the date of adoption. The guidance in this ASU became effective January 1, 2019. Upon adoption, the Company reclassified $268.7 million of HTM securities to AFS, resulting in a $0.2 million loss in the Consolidated Statement of Income. Accounting Guidance Issued But Not Yet Adopted In June 2016, the FASB issued an update (ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments) which significantly changes how entities are required to measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This update will replace the current incurred loss approach for estimating credit losses with an expected loss model for instruments measured at amortized cost, including loans and leases. Expected credit losses are required to be based on amortized cost and reflect losses expected over the remaining contractual life of the asset. Management is expected to consider any available information relevant to assessing the collectibility of contractual cash flows, such as information about past events, current conditions, voluntary prepayments and reasonable and supportable forecasts, when developing expected credit loss estimates. In addition to the new framework for calculating the ALLL, this update requires allowances for available-for-sale debt securities rather than a reduction of the security's carrying amount under the current other-than-temporary impairment model. This update also simplifies the accounting model for purchased credit-impaired debt securities and loans and will require new and updated footnote disclosures. The guidance in this ASU will become effective for interim and annual reporting periods beginning after December 15, 2019. First Financial currently expects as of January 1, 2020 to recognize a one-time cumulative effect adjustment to increase the ALLL with an offsetting reduction to the retained earnings component of equity. In December 2018, the federal bank regulatory agencies approved a final rule that modifies their regulatory capital rules and provides institutions the option to phase in over a three-year period any day-one regulatory capital effects of this update. First Financial has formed an internal management committee and engaged a third party vendor to assist with the transition to the guidance set forth in this update. The committee is currently evaluating the impact of this update on First Financial’s Consolidated Financial Statements, but the ALLL is expected to increase upon adoption since the allowance will be required to cover the full expected life of the portfolio. The extent of this increase is still being evaluated and will depend on economic conditions and the composition of the loan and lease portfolio at the time of adoption. Management is currently evaluating the preliminary modeling results, which includes a qualitative framework to account for the drivers of credit losses that are not captured by the quantitative model and a model validation has been completed by an independent third party. In August 2018, the FASB issued an update (ASU No. 2018-13, Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement) which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The update is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. This update is not expected to have a material impact on the Company’s Consolidated Financial Statements.
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INVESTMENTS |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS For the three and six months ended June 30, 2019, there were sales of $115.6 million of AFS securities with $0.7 million in gross realized gains and $0.7 million gross realized losses. In conjunction with the adoption of ASU 2017-12 in the first quarter of 2019, First Financial reclassified $268.7 million of HTM securities to AFS resulting in a $0.2 million realized loss recorded in the Consolidated Statement of Income. For the three and six months ended June 30, 2018, proceeds on the sale of $216.2 million of AFS securities resulted in insignificant gross gains and losses. In addition to the sale of certain securities during the second quarter of 2018, First Financial reclassified $367.9 million of HTM securities to AFS to align with post-merger investment strategies. The following is a summary of HTM and AFS investment securities as of June 30, 2019:
The following is a summary of HTM and AFS investment securities as of December 31, 2018:
The following table provides a summary of investment securities by contractual maturity as of June 30, 2019, except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments.
Unrealized gains and losses on debt securities are generally due to fluctuations in current market yields relative to the yields of the debt securities at their amortized cost. All securities with unrealized losses are reviewed quarterly to determine if any impairment is considered other than temporary, requiring a write-down to fair value. First Financial considers the percentage loss on a security, duration of the loss, average life or duration of the security, credit rating of the security and payment performance, as well as the Company's intent and ability to hold the security to maturity, when determining whether any impairment is other than temporary. At this time, First Financial does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities temporarily impaired prior to maturity or recovery of the recorded value. First Financial had no other than temporary impairment related to its investment securities portfolio as of June 30, 2019 or December 31, 2018. As of June 30, 2019, the Company's investment securities portfolio consisted of 1,347 securities, of which 177 were in an unrealized loss position. As of December 31, 2018, the Company's investment securities portfolio consisted of 1,417 securities, of which 504 were in an unrealized loss position. The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:
For further detail on the fair value of investment securities, see Note 16 – Fair Value Disclosures.
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LOANS AND LEASES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND LEASES | LOANS AND LEASES First Financial offers clients a variety of commercial and consumer loan and lease products with distinct interest rates and payment terms. Commercial loan categories include C&I, CRE, construction real estate and lease financing. Consumer loan categories include residential real estate, home equity, installment and credit card. Lending activities are primarily concentrated in states where the Bank operates banking centers (Ohio, Indiana, Kentucky and Illinois). First Financial also offers two nationwide lending platforms, one that provides equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector and another that primarily provides loans that are secured by commissions and cash collateral to insurance agents and brokers. Credit Quality. To facilitate the monitoring of credit quality for commercial loans, and for purposes of determining an appropriate ALLL, First Financial utilizes the following categories of credit grades: Pass - Higher quality loans that do not fit any of the other categories described below. Special Mention - First Financial assigns a special mention rating to loans and leases with potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in First Financial's credit position at some future date. Substandard - First Financial assigns a substandard rating to loans or leases that are inadequately protected by the current sound financial worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans and leases have well-defined weaknesses that jeopardize repayment of the debt. Substandard loans and leases are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not addressed. Doubtful - First Financial assigns a doubtful rating to loans and leases with all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. The credit grades previously described are derived from standard regulatory rating definitions and are assigned upon initial approval of credit to borrowers and updated periodically thereafter. First Financial considers repayment performance to be the best indicator of credit quality for consumer loans. Consumer loans that have principal and interest payments that are past due by 90 days or more are generally classified as nonperforming. Additionally, consumer loans that have been modified in a TDR are classified as nonperforming. Purchased impaired loans are not classified as nonperforming as the loans are considered to be performing under FASB ASC Topic 310-30. Commercial and consumer credit exposure by risk attribute was as follows:
Delinquency. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the date of the scheduled payment. Loan delinquency, including loans classified as nonaccrual, was as follows:
Nonaccrual. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to the continued failure to adhere to contractual payment terms by the borrower, coupled with other pertinent factors. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan classified as nonaccrual may return to accrual status if none of the principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual principal and interest. Purchased impaired loans are classified as performing, even though they may be contractually past due, as any nonpayment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period provision for loan and lease losses or prospective yield adjustments. Troubled Debt Restructurings. A loan modification is considered a TDR when the borrower is experiencing financial difficulty and concessions are made by the Company that would not otherwise be considered for a borrower with similar credit characteristics. The most common types of modifications include interest rate reductions, maturity extensions and modifications to principal amortization, including interest-only structures. Modified terms are dependent upon the financial position and needs of the individual borrower. If the modification agreement is violated, the loan is managed by the Company’s credit administration group for resolution, which may result in foreclosure in the case of real estate. TDRs are generally classified as nonaccrual for a minimum period of six months and may qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement. First Financial had 177 TDRs totaling $48.4 million at June 30, 2019, including $37.4 million on accrual status and $11.0 million classified as nonaccrual. First Financial had $0.3 million of commitments outstanding to lend additional funds to borrowers whose loan terms have been modified through TDRs, and the ALLL included reserves of $5.6 million related to TDRs at June 30, 2019. Additionally, as of June 30, 2019, $12.0 million of accruing TDRs have been performing in accordance with the restructured terms for more than one year. First Financial had 196 TDRs totaling $38.5 million at December 31, 2018, including $16.1 million of loans on accrual status and $22.4 million classified as nonaccrual. First Financial had no commitments outstanding to lend additional funds to borrowers whose loan terms had been modified through TDRs. At December 31, 2018, the ALLL included reserves of $1.5 million related to TDRs, and $7.9 million of the accruing TDRs had been performing in accordance with the restructured terms for more than one year. The following tables provide information on loan modifications classified as TDRs during the three and six months ended June 30, 2019 and 2018:
For TDRs identified during the three and six months ended June 30, 2019, there were no chargeoffs for the portion of TDRs determined to be uncollectible. For TDRs identified during the three and six months ended June 30, 2018, there was $0.1 million chargeoffs for the portion of TDRs determined to be uncollectible. The following table provides information on how TDRs were modified during the three and six months ended June 30, 2019 and 2018:
(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions First Financial considers repayment performance as an indication of the effectiveness of the Company's loan modifications. Borrowers that are 90 days or more past due on any principal or interest payments, or who prematurely terminate a restructured loan agreement without paying the contractual principal balance (for example, in a deed-in-lieu arrangement), are considered to be in payment default of the terms of the TDR agreement. For the three months ended June 30, 2019, there were no TDRs for which there was a payment default during the period that occurred within twelve months of the loan modification. For the six months ended June 30, 2019, there were two TDR relationships for $6.8 million, for which there was a payment default during the period that occurred within twelve months of the loan modification. There was one TDR, insignificant in amount, for which there was a payment default during the period that occurred within twelve months of the loan modification for the three and six month periods ended June 30, 2018. Impaired Loans. Loans classified as nonaccrual and loans modified as TDRs are considered impaired. The following table provides information on impaired loans, excluding purchased impaired loans:
(1) Nonaccrual loans include nonaccrual TDRs of $11.0 million and $22.4 million as of June 30, 2019 and December 31, 2018, respectively.
First Financial individually reviews all impaired commercial loan relationships, as well as consumer loan TDRs greater than $250,000, to determine if a specific allowance is necessary based on the borrower’s overall financial condition, payment record, support from guarantors and the realizable value of any collateral. Specific allowances are based on discounted cash flows using the loan's initial effective interest rate or the fair value of the collateral for certain collateral dependent loans. First Financial's investment in impaired loans was as follows:
First Financial's average impaired loans by class and interest income recognized by class was as follows:
Lease financing. The Company prospectively applied Topic 842 in the first quarter of 2019. First Financial originates both sales-type and direct financing leases, and the Company manages and reviews lease residuals in accordance with its credit policies. Sales-type lease contracts contain the ability to purchase the underlying equipment at lease maturity and profit or loss is recognized at lease commencement. Direct financing leases are generally three to five years in length and may be extended at maturity, however, early cancellation may result in a fee to the borrower. For direct financing leases, the net unearned income is deferred and amortized over the life of the lease. Income recognized in first six months of 2019 related to the implementation of Topic 842 was insignificant. OREO. OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, that results in partial or total satisfaction of problem loans. Changes in OREO were as follows:
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ALLOWANCE FOR LOAN AND LEASE LOSSES |
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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:
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GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill. Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess cost of the acquisition over the fair value of net assets acquired is recorded as goodwill. Changes in the carrying amount of goodwill for the six months ended June 30, 2019 and the year ended December 31, 2018 were as follows:
During 2018, First Financial recorded additions to goodwill resulting from the merger with MSFG of $676.2 million, and in the first quarter of 2019, First Financial recorded its final adjustments to goodwill associated related to the merger. For further detail on the merger with MSFG, see Note 17 - Business Combinations. Goodwill is evaluated for impairment on an annual basis as of October 1 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. First Financial performed its most recent annual impairment test as of October 1, 2018 and no impairment was indicated. As of June 30, 2019, no events or changes in circumstances indicated that the fair value of a reporting unit was below its carrying value. Other intangible assets. As of June 30, 2019 and December 31, 2018, First Financial had $36.3 million and $40.8 million, respectively, of other intangible assets included in Other intangibles in the Consolidated Balance Sheets, which primarily consist of core deposit intangibles. Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis over their estimated useful lives. Core deposit intangibles were $33.8 million and $37.9 million as of June 30, 2019 and December 31, 2018, respectively. First Financial's core deposit intangibles have an estimated weighted average remaining life of 8.4 years. Amortization expense recognized on intangible assets for the three months ended June 30, 2019 and 2018 was $2.0 million and $2.4 million, respectively. Amortization expense recognized on intangible assets for the six months ended June 30, 2019 and 2018 was $4.1 million and $2.6 million, respectively.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. First Financial is primarily the lessee in its leasing agreements, and substantially all of those agreements are for real estate property for branches, ATM locations and office space. On January 1, 2019, the Company adopted Topic 842 and all subsequent updates that modified Topic 842. For First Financial, this update primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. With the adoption of Topic 842, operating lease agreements were required to be recognized on the consolidated balance sheets as an ROU asset and a corresponding lease liability. Substantially all of the Company's leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets. The Company's right to use an asset over the life of a lease is recorded as a "right of use" asset in Accrued interest and other assets on the Consolidated Balance Sheet and was $59.9 million at June 30, 2019. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. First Financial recorded a $65.5 million lease liability in Accrued interest and other liabilities on the Consolidated Balance Sheet at June 30, 2019. The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. Leases with an initial term of 12 months or less are not recorded on the balance sheet and First Financial recognizes lease expense for these leases on a straight-line basis over the term of the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of renewal options on operating leases is at the Company's sole discretion, and certain leases may include options to purchase the leased property. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. First Financial does not enter into lease agreements which contain material residual value guarantees or material restrictive covenants. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements and leases generally also include real estate taxes and common area maintenance charges in the annual rental payments. The components of lease expense were as follows:
Future minimum commitments due under these lease agreements as of June 30, 2019 are as follows:
The lease term and discount rate at June 30, 2019 were as follows:
Supplemental cash information at June 30, 2019 related to leases was as follows:
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BORROWINGS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BORROWINGS | BORROWINGS Short-term borrowings on the Consolidated Balance Sheets include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, federal funds purchased, overnight advances from the FHLB and a short-term line of credit. All repurchase agreements are subject to terms and conditions agreed to by the Bank and the client. To secure its liability to the client, the Bank is authorized to sell or repurchase U.S. Treasury, government agency and mortgage-backed securities. The following shows the remaining contractual maturity of repurchase agreements by collateral pledged:
Securities sold under agreements to repurchase are secured by securities with a carrying amount of $85.7 million and $85.5 million, as of June 30, 2019 and December 31, 2018, respectively. First Financial had $175.0 million in federal funds purchased at June 30, 2019 and $99.0 million as of December 31, 2018. The Company also had $1.1 billion in short-term borrowings with the FHLB at June 30, 2019 and $857.1 million as of December 31, 2018. These short-term borrowings are used to manage normal liquidity needs and support the Company's asset and liability management strategies. First Financial has a $30.0 million short-term credit facility with an unaffiliated bank that matures in September 2019. This facility can have a variable or fixed interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of June 30, 2019 and December 31, 2018, there was no outstanding balance. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of June 30, 2019 and December 31, 2018. First Financial had $547.0 million and $570.7 million of long-term debt as of June 30, 2019 and December 31, 2018, respectively, which included subordinated notes, FHLB long term advances and an interest free loan with a municipality. The following is a summary of First Financial's long-term debt:
In 2015, First Financial issued $120.0 million of subordinated notes, which have a fixed interest rate of 5.125% payable semiannually and maturing in August 2025. These notes are not redeemable by the Company, or callable by the holders of the notes prior to maturity. In addition, First Financial acquired $49.5 million of variable rate subordinated notes in the MSFG merger that were issued to previously formed trusts in exchange for the trust proceeds. Interest on the acquired subordinated notes is payable quarterly, in arrears, and the Company has the option to defer interest payments for a period not to exceed 20 consecutive quarters. These acquired subordinated notes mature 30 years after the date of original issuance and may be called at par following the 5 year anniversary of issuance. First Financial also acquired $8.4 million of 7.40% fixed rate private placement subordinated debt in conjunction with the MSFG merger that was issued in 2015 and matures in 2025. These notes are redeemable by the Company at par following the 5 year anniversary of issuance. The subordinated notes are treated as Tier 2 capital for regulatory capital purposes and are included in Long-term debt on the Consolidated Balance Sheets. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The related tax effects allocated to other comprehensive income and reclassifications out of accumulated other comprehensive income (loss) are as follows:
The following table presents the activity reclassified from accumulated other comprehensive income into income during the three and six month periods ended June 30, 2019 and 2018, respectively:
(1) Negative amounts are reductions to net income. (2) Included in the computation of net periodic pension cost (see Note 13 - Employee Benefit Plans for additional details).
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DERIVATIVES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES First Financial uses certain derivative instruments, including interest rate caps, floors and swaps, to meet the needs of its clients while managing the interest rate risk associated with certain transactions. First Financial does not use derivatives for speculative purposes. First Financial primarily utilizes interest rate swaps as a means to offer borrowers credit-based products that meet their needs. First Financial may also utilize interest rate swaps to manage the interest rate risk profile of the Company. Interest rate payments are exchanged with counterparties based on the notional amount established in the interest rate agreement. As only interest rate payments are exchanged, the cash requirements and credit risk associated with interest rate swaps are significantly less than the notional amount and the Company’s credit risk exposure is limited to the market value of the instruments. First Financial manages market value credit risk through counterparty credit policies including a review of total derivative notional position to total assets, total credit exposure to total capital and counterparty credit exposure risk. The Company is currently below all single, central clearing and portfolio limits. Client Derivatives. First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets. The following table details the classification and amounts recognized in the Consolidated Balance Sheets for client derivatives:
At June 30, 2019, the Company had a total counterparty notional amount outstanding of $1.6 billion, spread among sixteen counterparties, with an outstanding liability from these contracts of $64.1 million. At December 31, 2018, the Company had a total counterparty notional amount outstanding of $1.4 billion, spread among thirteen counterparties, with an outstanding liability from these contracts of $4.9 million. First Financial monitors its derivative credit exposure to borrowers by monitoring the creditworthiness of the related loan customers through the Company's normal credit review processes. Additionally, the Company's ALLL Committee monitors derivative credit risk exposure related to problem loans through the Company's ALLL committee. First Financial considers the market value of a derivative instrument to be part of the carrying value of the related loan for these purposes as the borrower is contractually obligated to pay First Financial this amount in the event the derivative contract is terminated. In connection with its use of derivative instruments, First Financial and its counterparties may be required to post cash collateral to offset the market position of the derivative instruments. First Financial maintains the right to offset these derivative positions with the collateral posted against them by or with the relevant counterparties. First Financial classifies the derivative cash collateral outstanding with its counterparties as an adjustment to the fair value of the derivative contracts within Accrued interest and other assets or Accrued interest and other liabilities in the Consolidated Balance Sheets. The following table discloses the gross and net amounts of client derivative liabilities recognized in the Consolidated Balance Sheets:
The following table details the derivative financial instruments, the average remaining maturities and the weighted-average interest rates being paid and received by First Financial at June 30, 2019:
Credit Derivatives. In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial assumes a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will make payments to the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract with the counterparty. The total notional value of these agreements totaled $155.6 million as of June 30, 2019 and $138.4 million as of December 31, 2018. The fair value of these agreements is recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets and was $0.3 million at June 30, 2019 and $0.1 million at December 31, 2018. Mortgage Derivatives. First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure an IRLC with First Financial and the loan is intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale. At June 30, 2019, the notional amount of the IRLCs was $52.8 million and the notional amount of forward commitments was $52.8 million. As of December 31, 2018, the notional amount of IRLCs was $20.8 million and the notional amount of forward commitments was $12.3 million. The fair value of these agreements was insignificant at both June 30, 2019 and December 31, 2018 and was recorded in Accrued interest and other assets on the Consolidated Balance Sheets.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES First Financial offers a variety of financial instruments including letters of credit and outstanding commitments to extend credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements. First Financial utilizes the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. First Financial’s exposure to credit loss in the event of non-performance by the counterparty is represented by the contractual amounts of those instruments. First Financial utilizes the ALLL methodology to maintain a reserve that it considers sufficient to absorb probable incurred losses incurred in letters of credit and outstanding loan commitments. First Financial had $0.6 million and $0.7 million of reserves for unfunded commitments recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, respectively. Loan commitments. Loan commitments are agreements to extend credit to a client, absent any violation of conditions established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by First Financial upon extension of credit, is based on management’s credit evaluation of the client. The collateral held varies, but may include securities, real estate, inventory, plant or equipment. First Financial had commitments outstanding to extend credit totaling $3.3 billion and $3.0 billion at June 30, 2019 and December 31, 2018, respectively. As of June 30, 2019, loan commitments with a fixed interest rate totaled $188.4 million while commitments with variable interest rates totaled $3.1 billion. At December 31, 2018, loan commitments with a fixed interest rate totaled $174.0 million while commitments with variable interest rates totaled $2.9 billion. First Financial's fixed rate loan commitments have interest rates ranging from 0.00% to 21.00% and maturities ranging from less than 1 year to 30 years for both June 30, 2019 and December 31, 2018. Letters of credit. Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party. First Financial’s letters of credit consist of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services. The risk to First Financial arises from its obligation to make payment in the event of the client's contractual default to produce the contracted good or service to a third party. First Financial issued letters of credit aggregating $32.5 million and $32.7 million at June 30, 2019 and December 31, 2018, respectively. Management conducts regular reviews of these instruments on an individual client basis. Investments in affordable housing tax credits. First Financial has made investments in certain qualified affordable housing tax credits. These credits are an indirect federal subsidy that provide tax incentives to encourage investment in the development, acquisition and rehabilitation of affordable rental housing, and allow investors to claim tax credits and other tax benefits (such as deductions from taxable income for operating losses) on their federal income tax returns. The principal risk associated with qualified affordable housing investments is the potential for noncompliance with the tax code requirements, such as failure to rent property to qualified tenants, resulting in the unavailability or recapture of the tax credits and other tax benefits. Investments in affordable housing projects are accounted for under the proportional amortization method and are included in Accrued interest and other assets in the Consolidated Balance Sheets. First Financial's affordable housing commitments totaled $33.5 million and $39.4 million as of June 30, 2019 and December 31, 2018, respectively. The Company recognized tax credits of $1.6 million and $1.2 million for the three months ended June 30, 2019 and 2018, respectively and $3.2 million and $2.3 million for the six months ended June 30, 2019 and 2018, respectively. The Company recognized amortization expense which was included in income tax expense of $2.1 million and $1.6 million for the three months ended June 30, 2019 and 2018, respectively and $3.8 million and $2.8 million for the six months ended June 30, 2019 and 2018, respectively. First Financial had no affordable housing contingent commitments as of June 30, 2019 or December 31, 2018. Investments in historic tax credits. First Financial has noncontrolling financial investments in private investment funds and partnerships which are not consolidated. These investments may generate a return through the realization of federal and state income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investments over a period of time. Investments in historic tax credits are accounted for under the equity method of accounting and are carried in Accrued interest and other assets on the Consolidated Balance Sheets. The Company’s recorded investment in these entities was approximately $3.7 million at June 30, 2019 and $3.9 million at December 31, 2018. The maximum exposure to loss related to these investments was $3.7 million at June 30, 2019 and $3.9 million at December 31, 2018, representing the Company’s investment balance and its unfunded commitments to invest additional amounts. Investments in historic tax credits resulted in $0.1 million tax credits for both three month periods ended June 30, 2019 and June 30, 2018, and $0.1 million and $0.2 million for the six months ended June 30, 2019 and June 30, 2018, respectively. Contingencies/Litigation. First Financial and its subsidiaries are engaged in various matters of litigation from time to time, and have a number of unresolved claims pending. Additionally, as part of the ordinary course of business, First Financial and its subsidiaries are parties to litigation involving claims to the ownership of funds in particular accounts, the collection of delinquent accounts, challenges to security interests in collateral and foreclosure interests that are incidental to our regular business activities. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, First Financial believes that damages, if any, and other amounts relating to pending matters are not probable or cannot be reasonably estimated as of June 30, 2019. Reserves are established for these various matters of litigation, when appropriate, under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel. First Financial had no reserves related to litigation matters as of June 30, 2019 or December 31, 2018.
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INCOME TAXES |
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Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the second quarter 2019, income tax expense was $13.2 million, resulting in an effective tax rate of 20.0% compared with income tax expense of $9.3 million and an effective income tax rate of 20.4% for the comparable period in 2018. For the first six months of 2019, income tax expense was $23.1 million, resulting in an effective tax rate of 19.0% compared with income tax expense of $17.0 million and an effective tax rate of 20.2% for the comparable period in 2018. The decrease in the effective tax rate is primarily due to favorable resolution of an uncertain state tax position and favorable tax reform guidance related to the treatment of acquired BOLI and stock compensation activity, which was partially offset by an increase in non-deductible executive compensation. At June 30, 2019 and December 31, 2018, First Financial had $2.4 million and $2.9 million, respectively, of unrecognized tax benefits, as determined in FASB ASC Topic 740-10, Income Taxes, that if recognized would favorably impact the effective income tax rate in future periods. The unrecognized tax benefits relate to state income tax exposures from taking tax positions where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial. The Company believes that resolution regarding our uncertain tax positions is reasonably possible within the next twelve months and could result in full, partial or no recognition of the benefit. First Financial recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. At June 30, 2019 and December 31, 2018, the Company had no interest or penalties recorded. First Financial and its subsidiaries are subject to U.S. federal income tax as well as state and local income tax in several jurisdictions. Tax years prior to 2015 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2015 through 2018 remain open to examination by the federal taxing authority. First Financial is no longer subject to state and local income tax examinations for years prior to 2011. Tax years 2011 through 2018 remain open to state and local examination in various jurisdictions.
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EMPLOYEE BENEFIT PLANS |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS First Financial sponsors a non-contributory defined benefit pension plan which covers substantially all employees and uses a December 31 measurement date for the plan. Plan assets were primarily invested in fixed income and publicly traded equity mutual funds. The pension plan does not directly own any shares of First Financial common stock or any other First Financial security or product. First Financial made no cash contributions to fund the pension plan during the six months ended June 30, 2019, or the year ended December 31, 2018, and does not expect to make cash contributions to the plan through the remainder of 2019. As a result of the plan’s actuarial projections, which included consideration of the impact of the merger with MSFG, First Financial recorded expense as set forth in the following table. The amounts are recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan.
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REVENUE RECOGNITION |
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Revenue Recognition [Abstract] | ||||||||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION The majority of the Company's revenues come from interest income and other sources, including loans, leases, securities and derivatives, that are outside the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The Company's services that fall within the scope of ASU 2019-09 are presented within Noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of this guidance include service charges on deposits, trust and wealth management fees, bankcard income, gain/loss on the sale of OREO and investment brokerage fees. Service charges on deposit accounts. The Company earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Similarly, overdraft fees are recognized at the point in time that the overdraft occurs as this corresponds with the Company's performance obligation. Service charges on deposit accounts are withdrawn from the customer's account balance. Trust and wealth management fees. Trust and wealth management fees are primarily asset-based, but can also include flat fees based upon a specific service rendered, such as tax preparation services. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fees. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and wealth management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, as incurred. Bankcard income. The Company earns interchange fees from cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized concurrent with the transaction processing services provided to the cardholder. Interchange income is presented on the Consolidated Statements of Income net of expenses. Gross interchange income for the second quarter of 2019 was $6.7 million, which was partially offset by $2.1 million of expenses within Noninterest income. Gross interchange income for the second quarter of 2018 was $8.1 million, which was partially offset by $2.8 million of expenses. Gross interchange income for the first six months of 2019 was $15.2 million, which was partially offset by $5.0 million of expenses within Noninterest income. Gross interchange income for the first six months of 2018 was $13.5 million, which was partially offset by $4.8 million of expenses. Other. Other noninterest income consists of other recurring revenue streams such as transaction fees, safe deposit rental income, insurance commissions, merchant referral income, gain (loss) on sale of OREO and brokerage revenue. Transaction fees primarily include check printing sales commissions, collection fees and wire transfer fees which arise from in-branch transactions. Safe deposit rental income arises from services charged to the customer on an annual basis and recognized upon receipt of payment. Insurance commissions are agent commissions earned by the Company and earned upon the effective date of the bound coverage. Merchant referral income is associated with a program whereby the Company receives a share of processing revenue that is generated from clients that were referred by First Financial to the service provider. Revenue is recognized at the point in time when the transaction occurs. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of the executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectibility of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. Brokerage revenue represents fees from investment brokerage services provided to customers by a third party provider. The Company receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are paid the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs. |
EARNINGS PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per share:
First Financial had no warrants outstanding to purchase the Company's common stock as of June 30, 2019. Warrants acquired in the MSFG merger were outstanding as of December 31, 2018 and were exercised in January 2019. At June 30, 2018, First Financial had warrants outstanding representing the right to purchase 22,698 shares of common stock at an exercise price of $12.11 per share and all unexercised warrants expired in December 2018. |
FAIR VALUE DISCLOSURES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The fair value framework as disclosed in the Fair Value Topic includes a hierarchy which focuses on prioritizing the inputs used in valuation techniques. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), a lower priority to observable inputs other than quoted prices in active markets for identical assets and liabilities (Level 2) and the lowest priority to unobservable inputs (Level 3). When determining the fair value measurements for assets and liabilities, First Financial looks to active markets to price identical assets or liabilities whenever possible and classifies such items in Level 1. When identical assets and liabilities are not traded in active markets, First Financial looks to observable market data for similar assets and liabilities and classifies such items as Level 2. Certain assets and liabilities are not actively traded in observable markets and First Financial must use alternative techniques, based on unobservable inputs, to determine the fair value and classifies such items as Level 3. The level within the fair value hierarchy is based on the lowest level of input that is significant in the fair value measurement. The estimated fair values of First Financial’s financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:
In accordance with our adoption of ASU 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at June 30, 2019 and December 31, 2018 represent an approximation of exit price, however, an actual exit price may differ. The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis. Investment securities. Investment securities classified as available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar investment securities. First Financial compiles prices from various sources who may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for the specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment securities not valued based upon the methods previously described are considered Level 3. First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance. First Financial’s pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services. Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities. First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings. The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager. Impaired loans. The fair value of impaired loans are specifically reviewed for purposes of determining the appropriate amount of impairment to be allocated to the ALLL. Fair value is generally measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed third-party appraiser (Level 3). The value of business equipment is based on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3). Impaired loans are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan and lease losses on the Consolidated Statements of Income. OREO. Assets acquired through loan foreclosure are recorded at fair value less costs to sell, with any difference between the fair value of the property and the carrying value of the loan recorded as a charge-off. If the fair value is higher than the carrying amount of the loan, the excess is recognized first as a recovery and then as noninterest income. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in noninterest expense. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value differs from the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. The Company classifies OREO in level 3 of the fair value hierarchy. Derivatives. The fair values of derivative instruments are based primarily on a net present value calculation of the cash flows related to the interest rate swaps at the reporting date, using primarily observable market inputs such as interest rate yield curves which represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes an internally-developed model to value the credit risk component of derivative assets and liabilities, which is recorded as an adjustment to the fair value of the derivative asset or liability on the reporting date. Derivative instruments are classified as Level 2 in the fair value hierarchy. The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows:
The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended June 30, 2019. No AFS securities were measured at fair value on a recurring basis for the three or six months ended June 30, 2018.
Certain financial assets and liabilities are measured at fair value on a nonrecurring basis. Adjustments to the fair market value of these assets usually result from the application of fair value accounting or write-downs of individual assets. The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis.
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BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On June 18, 2019, the Company entered into an agreement to acquire Bannockburn Global Forex, LLC. Pursuant to the agreement, First Financial agreed to acquire all of the issued and outstanding membership interests of BGF for aggregate consideration of approximately $117.0 million in cash and First Financial common stock. BGF is a privately held capital markets trading firm specializing in foreign currency advisory, hedge analytics, and transaction processing for closely held enterprises. Upon completion of the transaction, Bannockburn will become a division of the Bank, but will continue to operate as Bannockburn Global Forex, taking advantage of its existing brand recognition within the foreign exchange industry. The transaction is expected to close in the third quarter of 2019, subject to various regulatory approvals and other closing conditions. On April 1, 2018, the Company completed its acquisition of MainSource Financial Group, Inc. and its banking subsidiary, MainSource Bank. Therefore, results of MSFG have been included in the results of operations beginning on April 1, 2018. Under the terms of the merger agreement, shareholders of MSFG received 1.3875 common shares of First Financial common stock for each share of MSFG common stock, with cash paid in lieu of fractional shares. Including outstanding options and warrants to purchase MSFG common stock, the total purchase consideration was $1.1 billion and resulted in goodwill of $675.6 million. The goodwill arising from the acquisition largely reflected synergies and cost savings resulting from combining the operations of the companies. First Financial incurred merger related expenses related to the acquisition of MSFG of $0.8 million for the second quarter of 2019, $2.4 million for the first six months of 2019 and $37.8 million during the year ended December 31, 2018. The acquisition provides additional revenue growth and diversification. The goodwill is not deductible for income tax purposes as the transaction was accounted for as a tax-free exchange. For further detail, see Note 6 – Goodwill and Other Intangible Assets. The MainSource transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date, in accordance with FASB ASC Topic 805, Business Combinations. The fair value measurements of assets acquired and liabilities assumed were subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values became available. The fair values of assets acquired and liabilities assumed were considered final as of March 31, 2019. The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value. As a condition of the merger, certain acquired assets and liabilities held for sale were divested subsequent to the closing of the merger. There was no gain or loss recorded in the Consolidated Statement of Income in conjunction with this divestiture.
The fair value of net assets acquired includes fair value adjustments to certain loans that were not considered impaired as of the acquisition date as the Company believes that all contractual cash flows will be collected. The fair value adjustments were determined using discounted cash flows. In conjunction with the MSFG merger, First Financial acquired loans with a fair value and gross contractual amounts receivable of $2.8 billion and $2.9 billion on the date of acquisition. The following table presents supplemental pro forma information as if the MSFG acquisition had occurred at the beginning of 2017. The pro forma information includes adjustments for interest income on acquired loans, amortization of intangible assets arising from the transaction, depreciation expense on property acquired, interest expense on deposits acquired, merger-related expenses incurred and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed date. The disclosures regarding the results of operations for MSFG subsequent to its acquisition date are omitted as this information is not practical to obtain.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Letters of credit are conditional commitments issued by First Financial to guarantee the performance of a client to a third party. First Financial’s letters of credit consist of performance assurances made on behalf of clients who have a contractual commitment to produce or deliver goods or services. The risk to First Financial arises from its obligation to make payment in the event of the client's contractual default to produce the contracted good or service to a third party. |
Basis of Presentation Policy | The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly-owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications of prior periods' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings.
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Use of Estimates, Policy | The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. These estimates, assumptions and judgments are inherently subjective and may be susceptible to significant change. Actual realized amounts could differ materially from these estimates. |
Loans and Leases Receivable, Past Due Status, Policy | Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the date of the scheduled payment. |
Loans and Leases Receivable, Nonaccrual Loan and Lease Status, Policy | Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are 90 days or more past due. Generally, loans are classified as nonaccrual due to the continued failure to adhere to contractual payment terms by the borrower, coupled with other pertinent factors. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan classified as nonaccrual may return to accrual status if none of the principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual principal and interest. Purchased impaired loans are classified as performing, even though they may be contractually past due, as any nonpayment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period provision for loan and lease losses or prospective yield adjustments. |
Loans and Leases Receivable, Troubled Debt Restructuring Policy | A loan modification is considered a TDR when the borrower is experiencing financial difficulty and concessions are made by the Company that would not otherwise be considered for a borrower with similar credit characteristics. The most common types of modifications include interest rate reductions, maturity extensions and modifications to principal amortization, including interest-only structures. Modified terms are dependent upon the financial position and needs of the individual borrower. If the modification agreement is violated, the loan is managed by the Company’s credit administration group for resolution, which may result in foreclosure in the case of real estate. |
Impaired Financing Receivable, Policy | First Financial individually reviews all impaired commercial loan relationships, as well as consumer loan TDRs greater than $250,000, to determine if a specific allowance is necessary based on the borrower’s overall financial condition, payment record, support from guarantors and the realizable value of any collateral. Specific allowances are based on discounted cash flows using the loan's initial effective interest rate or the fair value of the collateral for certain collateral dependent loans.Loans classified as nonaccrual and loans modified as TDRs are considered impaired. |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy | OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, that results in partial or total satisfaction of problem loans. |
Loans and Leases Receivable, Allowance for Loan Losses Policy | 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.
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Goodwill and Intangible Assets, Goodwill, Policy | Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess cost of the acquisition over the fair value of net assets acquired is recorded as goodwill. |
Goodwill and Intangible Assets, Goodwill Impairment Policy | Goodwill is evaluated for impairment on an annual basis as of October 1 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. |
Goodwill and Intangible Assets, Policy | Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis over their estimated useful lives. |
Income Tax, Policy | The unrecognized tax benefits relate to state income tax exposures from taking tax positions where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial. |
Commitments and Contingencies, Policy | First Financial offers a variety of financial instruments including letters of credit and outstanding commitments to extend credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements. |
Fair Value Measurement, Policy [Policy Text Block] | The fair value framework as disclosed in the Fair Value Topic includes a hierarchy which focuses on prioritizing the inputs used in valuation techniques. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), a lower priority to observable inputs other than quoted prices in active markets for identical assets and liabilities (Level 2) and the lowest priority to unobservable inputs (Level 3). When determining the fair value measurements for assets and liabilities, First Financial looks to active markets to price identical assets or liabilities whenever possible and classifies such items in Level 1. When identical assets and liabilities are not traded in active markets, First Financial looks to observable market data for similar assets and liabilities and classifies such items as Level 2. Certain assets and liabilities are not actively traded in observable markets and First Financial must use alternative techniques, based on unobservable inputs, to determine the fair value and classifies such items as Level 3. The level within the fair value hierarchy is based on the lowest level of input that is significant in the fair value measurement. |
Fair Value of Financial Instruments, Policy | The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis. Investment securities. Investment securities classified as available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar investment securities. First Financial compiles prices from various sources who may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for the specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment securities not valued based upon the methods previously described are considered Level 3. First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance. First Financial’s pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services. Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities. First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings. The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager. Impaired loans. The fair value of impaired loans are specifically reviewed for purposes of determining the appropriate amount of impairment to be allocated to the ALLL. Fair value is generally measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed third-party appraiser (Level 3). The value of business equipment is based on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3). Impaired loans are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan and lease losses on the Consolidated Statements of Income. OREO. Assets acquired through loan foreclosure are recorded at fair value less costs to sell, with any difference between the fair value of the property and the carrying value of the loan recorded as a charge-off. If the fair value is higher than the carrying amount of the loan, the excess is recognized first as a recovery and then as noninterest income. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in noninterest expense. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value differs from the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. The Company classifies OREO in level 3 of the fair value hierarchy. Derivatives. The fair values of derivative instruments are based primarily on a net present value calculation of the cash flows related to the interest rate swaps at the reporting date, using primarily observable market inputs such as interest rate yield curves which represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes an internally-developed model to value the credit risk component of derivative assets and liabilities, which is recorded as an adjustment to the fair value of the derivative asset or liability on the reporting date. Derivative instruments are classified as Level 2 in the fair value hierarchy.
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Loan Commitments, Policy [Policy Text Block] | Loan commitments are agreements to extend credit to a client, absent any violation of conditions established in the commitment agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by First Financial upon extension of credit, is based on management’s credit evaluation of the client. The collateral held varies, but may include securities, real estate, inventory, plant or equipment. |
Other Contract-Mortgage | |
Derivatives, Methods of Accounting, Hedging Derivatives, Policy | First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure an IRLC with First Financial and the loan is intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale. |
Credit Risk | |
Derivatives, Methods of Accounting, Hedging Derivatives, Policy | First Financial manages market value credit risk through counterparty credit policies including a review of total derivative notional position to total assets, total credit exposure to total capital and counterparty credit exposure risk. The Company is currently below all single, central clearing and portfolio limits. |
Fair Value Hedges | |
Derivatives, Methods of Accounting, Hedging Derivatives, Policy | First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets. |
INVESTMENTS (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Held-To-Maturity and Available-For-Sale Investment Securities | The following is a summary of HTM and AFS investment securities as of June 30, 2019:
The following is a summary of HTM and AFS investment securities as of December 31, 2018:
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Summary of Investment Securities by Estimated Maturity | The following table provides a summary of investment securities by contractual maturity as of June 30, 2019, except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments.
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Age of Gross Unrealized Losses and Associated Fair Value by Investment Category | The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:
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LOANS AND LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and Consumer Credit Exposure by Risk Attribute | Commercial and consumer credit exposure by risk attribute was as follows:
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Loan Delinquency, including Nonaccrual Loans | Loan delinquency, including loans classified as nonaccrual, was as follows:
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Loans Restructured During Period | The following tables provide information on loan modifications classified as TDRs during the three and six months ended June 30, 2019 and 2018:
For TDRs identified during the three and six months ended June 30, 2019, there were no chargeoffs for the portion of TDRs determined to be uncollectible. For TDRs identified during the three and six months ended June 30, 2018, there was $0.1 million chargeoffs for the portion of TDRs determined to be uncollectible. |
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Loans Restructured, Modifications | The following table provides information on how TDRs were modified during the three and six months ended June 30, 2019 and 2018:
(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions |
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Nonaccrual, Restructured and Impaired Loans | The following table provides information on impaired loans, excluding purchased impaired loans:
(1) Nonaccrual loans include nonaccrual TDRs of $11.0 million and $22.4 million as of June 30, 2019 and December 31, 2018, respectively.
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Investment in Impaired Loans | First Financial's investment in impaired loans was as follows:
First Financial's average impaired loans by class and interest income recognized by class was as follows:
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Changes in Other Real Estate Owned | Changes in OREO were as follows:
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ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses by Classification | Changes in the ALLL by loan category were as follows:
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GOODWILL (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill |
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] | The components of lease expense were as follows:
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Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum commitments due under these lease agreements as of June 30, 2019 are as follows:
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Schedule of supplemental balance sheet information related to leases. [Table Text Block] | The lease term and discount rate at June 30, 2019 were as follows:
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Schedule of supplemental cash flow information related to leases [Table Text Block] | Supplemental cash information at June 30, 2019 related to leases was as follows:
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BORROWINGS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Remaining Contractual Maturity Of Secured Borrowings And Class Of Collateral Pledged Under Repurchase Agreements Table [Table Text Block] | The following shows the remaining contractual maturity of repurchase agreements by collateral pledged:
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Summary of Long-term Debt | The following is a summary of First Financial's long-term debt:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Tax Effects Allocated to Other Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | The related tax effects allocated to other comprehensive income and reclassifications out of accumulated other comprehensive income (loss) are as follows:
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Other Accumulated Comprehensive income reclassified from AOCI | The following table presents the activity reclassified from accumulated other comprehensive income into income during the three and six month periods ended June 30, 2019 and 2018, respectively:
(1) Negative amounts are reductions to net income. (2) Included in the computation of net periodic pension cost (see Note 13 - Employee Benefit Plans for additional details).
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DERIVATIVES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Financial Instruments and Balances | The following table details the classification and amounts recognized in the Consolidated Balance Sheets for client derivatives:
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Disclosure by Type of Financial Instrument | The following table discloses the gross and net amounts of client derivative liabilities recognized in the Consolidated Balance Sheets:
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Derivative Financial Instruments, Average Remaining Maturity and the Weighted-Average Interest Rates being Paid and Received | The following table details the derivative financial instruments, the average remaining maturities and the weighted-average interest rates being paid and received by First Financial at June 30, 2019:
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EMPLOYEE BENEFIT PLANS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plan Amounts Recognized in the Consolidated Balance Sheets and Consolidated Statements of Income | As a result of the plan’s actuarial projections, which included consideration of the impact of the merger with MSFG, First Financial recorded expense as set forth in the following table. The amounts are recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan.
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EARNINGS PER COMMON SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share:
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FAIR VALUE DISCLOSURES (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values of Financial Instruments | The estimated fair values of First Financial’s financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:
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Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended June 30, 2019. No AFS securities were measured at fair value on a recurring basis for the three or six months ended June 30, 2018.
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Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis.
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BUSINESS COMBINATIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value. As a condition of the merger, certain acquired assets and liabilities held for sale were divested subsequent to the closing of the merger. There was no gain or loss recorded in the Consolidated Statement of Income in conjunction with this divestiture.
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Business Acquisition, Pro Forma Information, Nonrecurring Adjustments |
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RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jan. 01, 2019 |
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Income Tax Disclosure [Abstract] | ||||
Operating Lease, Right-of-Use Asset | $ 59,900 | $ 60,200 | ||
Operating Lease, Liability | $ 65,504 | $ 65,800 | ||
Debt Securities, Held-to-maturity, Transfer, Amount | $ 268,700 | $ 367,900 | ||
Realized gain (loss) on debt securities transferred from HTM to AFS | $ 200 |
INVESTMENTS - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
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Mar. 31, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018 |
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Gain (Loss) on Securities [Line Items] | ||||||
Realized gain (loss) on debt securities transferred from HTM to AFS | $ 200 | |||||
NumberOfSecuritiesInSecurityPortfolio | 1,347 | 1,347 | 1,417 | |||
NumberOfSecuritiesInUnrealizedLossPosition | 177 | 177 | 504 | |||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 115,640 | $ 216,197 | $ 115,600 | $ 216,200 | ||
Available-for-sale Securities, Gross Realized Gains | 684 | 0 | 700 | |||
Available-for-sale Securities, Gross Realized Losses | $ 720 | 30 | $ 700 | |||
Debt Securities, Held-to-maturity, Transfer, Amount | $ 268,700 | $ 367,900 |
LOANS AND LEASES - Changes in Other Real Estate Owned (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at beginning of period | $ 1,665 | $ 1,065 | $ 1,401 | $ 2,781 |
Additions | 904 | 1,545 | 1,408 | 2,174 |
Disposals | (471) | (618) | (654) | (2,840) |
Write-downs | 677 | 139 | 734 | 262 |
Balance at end of period | 1,421 | 1,853 | 1,421 | 1,853 |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Additions | 136 | 1,020 | 136 | 1,190 |
Disposals | (248) | (326) | (270) | (2,430) |
Write-downs | 55 | 0 | 55 | 97 |
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Additions | 768 | 525 | 1,272 | 984 |
Disposals | (223) | (292) | (384) | (410) |
Write-downs | $ 622 | $ 139 | $ 679 | $ 165 |
GOODWILL AND OTHER INTANGIBLE ASSETS--Schedule of Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Goodwill [Roll Forward] | ||||
Balance at beginning of period | $ 880,251 | $ 204,084 | $ 204,084 | |
Goodwill resulting from business combinations | $ 675,643 | (524) | $ 678,941 | 676,167 |
Balance at end of period | $ 879,727 | $ 880,251 |
GOODWILL AND OTHER INTANGIBLE ASSETS--Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Apr. 01, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill resulting from business combinations | $ 675,643 | $ (524) | $ 678,941 | $ 676,167 | |||
Goodwill | $ 879,727 | 879,727 | 880,251 | $ 204,084 | |||
Intangible Assets, Net (Excluding Goodwill) | 36,300 | 36,300 | 40,800 | ||||
Finite-Lived Core Deposits, Gross | 33,800 | 33,800 | $ 37,900 | ||||
Other Depreciation and Amortization | 2,000 | 4,100 | 2,600 | ||||
Amortization of Intangible Assets | $ 2,044 | $ 2,364 | $ 4,089 | $ 2,644 | |||
Core Deposits [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets amortization method | accelerated basis | ||||||
Estimated weighted average life (in years) | 8 years 4 months 24 days |
LEASES - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2019 |
|
Lease, Cost [Abstract] | ||
Operating Lease, Cost | $ 1,822 | $ 3,648 |
Short-term Lease, Cost | 0 | 1 |
Variable Lease, Cost | 633 | 1,230 |
Lease, Cost | $ 2,455 | $ 4,879 |
LEASES - Lease Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 3,770 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 7,469 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 7,093 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 6,741 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 6,695 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 55,530 | |
Lessee, Operating Lease, Liability, Payments, Due | 87,298 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 21,794 | |
Operating Lease, Liability | $ 65,504 | $ 65,800 |
LEASES - Schedule of supplemental balance sheet information related to assets (Details) |
Jun. 30, 2019 |
---|---|
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 16 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% |
LEASES - Supplemental cash flow information related to leases (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 3,759 | $ 0 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 64,938 |
LEASES - Additional Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 59,900 | $ 60,200 |
Operating Lease, Liability | $ 65,504 | $ 65,800 |
BORROWINGS - Repurchase Agreements (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Securities Sold under Agreements to Repurchase | $ 85,621 | |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned | 85,700 | $ 85,500 |
Residential Mortgage Backed Securities [Member] | ||
Securities Sold under Agreements to Repurchase | 25,966 | |
Collateralized Mortgage Obligations [Member] | ||
Securities Sold under Agreements to Repurchase | $ 59,655 |
BORROWINGS - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Amount | ||
Subordinated debt | $ 170,758 | $ 170,550 |
Unamortized debt issuance costs | (1,096) | (1,185) |
FHLB long-term advances | 376,605 | 400,599 |
Capital loan with municipality | 775 | 775 |
Total long-term debt | $ 547,042 | $ 570,739 |
Average Rate | ||
Debt, Weighted Average Interest Rate | 5.13% | 5.28% |
Federal Home Loan Bank | 2.13% | 2.08% |
Weighted average rate on other long-term debt | 0.00% | 0.00% |
Total long-term debt | 3.07% | 3.04% |
ACCUMULATED OTHER COMPREHENSIVE INCOME AMOUNT RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Other Accumulated Comprehensive income reclassified from AOCI [Line Items] | ||||
Realized gain (loss) on securities available-for-sale | $ (37) | $ (30) | $ (215) | $ (30) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 106 | 103 | 206 | 206 |
Defined Benefit Plan, Amortization of Gain (Loss) | (426) | (555) | (901) | (1,077) |
Other Comprehensive Income, Reclassification, Amortization of Defined Benefit Plans items, Pre-tax | (320) | (452) | (695) | (871) |
Total | $ (357) | $ (482) | $ (910) | $ (901) |
DERIVATIVES - Additional Information (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
entity
|
Dec. 31, 2018
USD ($)
entity
|
---|---|---|
Derivative [Line Items] | ||
Inerest-bearing deposit liability | $ 3,170,900 | $ 2,719,980 |
Number of counterparties | entity | 16 | 13 |
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | $ 68,932 | $ 29,188 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 52,800 | 20,800 |
Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 52,800 | 12,300 |
Credit Risk Derivative Liabilities, at Fair Value | 0 | 0 |
Credit Risk Contract [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 155,600 | 138,400 |
Credit Risk Derivative Liabilities, at Fair Value | 300 | 100 |
Accrued interest and other liabilities | Derivative [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 1,600,000 | 1,400,000 |
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | $ 64,100 | $ 4,900 |
DERIVATIVES - Summary of Derivative Financial Instruments and Balances (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | $ 3,170,900 | $ 2,719,980 |
Derivative Asset | 68,912 | 29,189 |
Estimate Fair Value Loss | (68,932) | (29,188) |
Other Credit Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | 52,800 | 12,300 |
Credit Risk Derivative Liabilities, at Fair Value | 0 | 0 |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | 1,585,450 | 1,359,990 |
Derivative Asset | 2,275 | 11,787 |
Estimate Fair Value Loss | (66,657) | (17,401) |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | 1,585,450 | 1,359,990 |
Derivative Asset | 66,637 | 17,402 |
Estimate Fair Value Loss | $ (2,275) | $ (11,787) |
DERIVATIVES - Disclosure by Type of Financial Instrument (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Credit Risk Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Credit Risk Derivative Liabilities, at Fair Value | $ 300 | $ 100 |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized liabilities | 68,932 | 29,189 |
Derivative Liability, Fair Value, Gross Asset | (71,750) | (14,577) |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ (14,612) | |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ (2,818) |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 13,201 | $ 9,327 | $ 23,122 | $ 16,980 | |
Effective tax rate | 20.00% | 20.40% | 19.00% | 20.20% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 2,400 | $ 2,400 | $ 2,900 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Retirement Benefits [Abstract] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 0 | $ 0 | |||
Payment for Pension Benefits | 0 | $ 0 | |||
Pension Cost (Reversal of Cost) | $ 145,000 | $ 338,000 | $ 520,000 | $ 182,000 |
EMPLOYEE BENEFIT PLANS - Employee benefit plan amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 1,545 | $ 1,735 | $ 3,295 | $ 3,030 |
Interest cost | 689 | 601 | 1,389 | 1,191 |
Expected return on plan assets | (2,409) | (2,450) | (4,859) | (4,910) |
Amortization of prior service cost | (106) | (103) | (206) | (206) |
Defined Benefit Plan, Amortization of Gain (Loss) | 426 | 555 | 901 | 1,077 |
Net periodic benefit cost (income) | $ 145 | $ 338 | $ 520 | $ 182 |
REVENUE RECOGNITION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenue Recognition [Abstract] | ||||
Interchange income | $ 6.7 | $ 8.1 | $ 15.2 | $ 13.5 |
Credit card expense | $ 2.1 | $ 2.8 | $ 5.0 | $ 4.8 |
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Numerator for basic and diluted earnings per share -income available to common shareholders: | ||||
Net income | $ 52,703 | $ 36,418 | $ 98,542 | $ 66,924 |
Denominator for basic earnings per share - weighted average shares | 98,083,799 | 97,347,533 | 98,005,379 | 79,599,709 |
Effect of dilutive securities - | ||||
Employee stock awards | 564,585 | 545,374 | 537,568 | 504,914 |
Warrants | 0 | 539,165 | 0 | 524,872 |
Denominator for diluted earnings per share - adjusted weighted average shares | 98,648,384 | 98,432,072 | 98,542,947 | 80,629,495 |
Basic | $ 0.54 | $ 0.37 | $ 1.01 | $ 0.84 |
Diluted | $ 0.53 | $ 0.37 | $ 1.00 | $ 0.83 |
EARNINGS PER COMMON SHARE - Additional Information (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Earnings Per Share Disclosure [Line Items] | ||
Investment Warrants, Exercise Price | $ 12.11 | |
Antidilutive Warrants | ||
Earnings Per Share Disclosure [Line Items] | ||
Stock options and warrants with an exercise price greater than the average market price of the common shares not included in the computation of net income per diluted share | 0 | 22,698 |
Antidilutive Stock Options | ||
Earnings Per Share Disclosure [Line Items] | ||
Stock options and warrants with an exercise price greater than the average market price of the common shares not included in the computation of net income per diluted share | 0 | 0 |
FAIR VALUE DISCLOSURES - Reconciliation of Gains and Losses on Level 3 Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 13,355 | $ 14,715 |
Accretion (amortization) | (569) | (562) |
Increase (decrease) in fair value | 12 | 33 |
Settlements | 0 | (1,388) |
Ending balance | $ 12,798 | $ 12,798 |
FAIR VALUE DISCLOSURES - Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value Measurements Using Level 1 | ||
Assets | ||
Impaired loans | $ 0 | $ 0 |
Other Real Estate Owned, Fair Value Disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | ||
Assets | ||
Impaired loans | 0 | 0 |
Other Real Estate Owned, Fair Value Disclosure | 0 | 0 |
Fair Value Measurements Using Level 3 | ||
Assets | ||
Impaired loans | 4,398 | 1,320 |
Other Real Estate Owned, Fair Value Disclosure | $ 953 | $ 1,089 |
BUSINESS COMBINATION - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Apr. 01, 2018 |
Jun. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Business Acquisition [Line Items] | |||||
Business Acquisition, Number Of Shares Received by Acquiree | 1.3875 | ||||
Business Combination, Consideration Transferred | $ 1,059,504 | $ 117,000 | |||
Goodwill | 675,643 | $ (524) | $ 678,941 | $ 676,167 | |
Payments for Merger Related Costs | $ 800 | $ 2,400 | $ 37,800 | ||
Loans | 2,792,572 | ||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 2,900,000 |
BUSINESS COMBINATION Business Acquisition, Pro Forma Information (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Business Combinations [Abstract] | ||
Business Acquisition, Pro Forma Revenue | $ 484,915 | $ 454,579 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 221,122 | $ 130,402 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.27 | $ 1.34 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.25 | $ 1.33 |
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