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LOANS AND LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Commercial and Consumer Credit Exposure by Risk Attribute

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



	As of June 30, 2019
	Commercial		Real Estate				Lease
(Dollars in thousands)	& industrial		Construction		Commercial		financing		Total
Pass	$	2,411,763	$	497,082	$	3,832,028	$	87,165	$	6,828,038
Special Mention	62,333		0		21,507		632		84,472
Substandard	73,901		601		50,119		2,841		127,462
Doubtful	0		0		0		0		0
Total	$	2,547,997	$	497,683	$	3,903,654	$	90,638	$	7,039,972



(Dollars in thousands)	Residential real estate		Home equity		Installment		Credit card		Total
Performing	$	999,843	$	781,895	$	88,954	$	48,599	$	1,919,291
Nonperforming	15,977		5,244		195		107		21,523
Total	$	1,015,820	$	787,139	$	89,149	$	48,706	$	1,940,814



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



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

Loan Delinquency, including Nonaccrual Loans

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



	As of 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	$	16,749	$	1,093	$	11,885	$	29,727	$	2,513,194	$	2,542,921	$	5,076	$	2,547,997	$	0
Lease financing	0		0		0		0		90,638		90,638		0		90,638		0
Construction real estate	0		595		0		595		496,903		497,498		185		497,683		0
Commercial real estate	1,925		1,345		10,042		13,312		3,847,576		3,860,888		42,766		3,903,654		0
Residential real estate	2,313		1,393		4,713		8,419		976,923		985,342		30,478		1,015,820		0
Home equity	3,160		1,683		2,603		7,446		776,821		784,267		2,872		787,139		0
Installment	205		167		63		435		88,370		88,805		344		89,149		0
Credit card	310		186		107		603		48,103		48,706		0		48,706		107
Total	$	24,662	$	6,462	$	29,413	$	60,537	$	8,838,528	$	8,899,065	$	81,721	$	8,980,786	$	107



	As of December 31, 2018
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 90 days past due		Total past due		Current		Subtotal		Purchased impaired		Total		> 90 days past due and still accruing
Loans
Commercial & industrial	$	13,369	$	41	$	7,423	$	20,833	$	2,488,450	$	2,509,283	$	5,378	$	2,514,661	$	0
Lease financing	352		0		0		352		93,063		93,415		0		93,415		0
Construction real estate	0		0		0		0		548,687		548,687		248		548,935		0
Commercial real estate	6,279		1,158		12,644		20,081		3,682,455		3,702,536		52,145		3,754,681		0
Residential real estate	11,060		2,976		4,535		18,571		902,404		920,975		34,671		955,646		0
Home equity	5,245		1,228		2,578		9,051		804,835		813,886		3,396		817,282		0
Installment	420		37		145		602		92,128		92,730		482		93,212		0
Credit card	541		96		63		700		45,682		46,382		0		46,382		63
Total	$	37,266	$	5,536	$	27,388	$	70,190	$	8,657,704	$	8,727,894	$	96,320	$	8,824,214	$	63

Loans Restructured During Period

The following tables provide information on loan modifications classified as TDRs during the three and six months ended June 30, 2019 and 2018:



	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	1	$	14,889	$	14,889	8	$	6,221	$	6,183
Construction real estate	0	0		0		0	0		0
Commercial real estate	1	42		42		4	2,047		2,016
Residential real estate	12	2,008		1,713		1	201		201
Home equity	11	306		277		0	0		0
Installment	0	0		0		0	0		0
Total	25	$	17,245	$	16,921	13	$	8,469	$	8,400

	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	6	$	22,527	$	22,550	12	$	7,149	$	7,096
Construction real estate	0	0		0		0	0		0
Commercial real estate	7	1,365		1,274		6	2,119		2,088
Residential real estate	17	2,466		2,171		3	294		294
Home equity	12	323		294		0	0		0
Installment	0	0		0		0	0		0
Total	42	$	26,681	$	26,289	21	$	9,562	$	9,478

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.

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:



	Three months ended				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2019		2018		2019		2018
Extended maturities	$	0	$	2,000	$	2,877	$	2,888
Adjusted interest rates	0		0		5,284		52
Combination of rate and maturity changes	0		0		508		0
Forbearance	15,078		6,199		15,635		6,199
Other ⁽¹⁾	1,843		201		1,985		339
Total	$	16,921	$	8,400	$	26,289	$	9,478

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

Nonaccrual, Restructured and Impaired Loans

The following table provides information on impaired loans, excluding purchased impaired loans:



(Dollars in thousands)	June 30, 2019		December 31, 2018
Impaired loans
Nonaccrual loans⁽¹⁾
Commercial & industrial	$	18,502	$	30,925
Lease financing	295		22
Construction real estate	6		9
Commercial real estate	15,981		20,500
Residential real estate	11,627		13,495
Home equity	4,745		5,580
Installment	195		169
Nonaccrual loans	51,351		70,700
Accruing troubled debt restructurings	37,420		16,109
Total impaired loans	$	88,771	$	86,809

⁽¹⁾ Nonaccrual loans include nonaccrual TDRs of $11.0 million and $22.4 million as of June 30, 2019 and December 31, 2018, respectively.



	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	$	1,467	$	1,132	$	3,080	$	1,934
Interest included in income
Nonaccrual loans	192		146		527		226
Troubled debt restructurings	269		189		505		313
Total interest included in income	461		335		1,032		539
Net impact on interest income	$	1,006	$	797	$	2,048	$	1,395

Investment in Impaired Loans

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



	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	$	38,964	$	41,783	$	0	$	36,694	$	42,561	$	0
Lease financing	295		295		0		22		22		0
Construction real estate	6		25		0		9		26		0
Commercial real estate	18,753		26,280		0		23,513		31,375		0
Residential real estate	14,937		17,036		0		17,297		19,975		0
Home equity	5,244		6,158		0		6,351		7,461		0
Installment	195		328		0		174		563		0
Total	78,394		91,905		0		84,060		101,983		0

Loans with an allowance recorded
Commercial & industrial	8,420		8,420		4,908		939		939		667
Lease financing	0		0		0		0		0		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	916		916		30		1,509		1,509		461
Residential real estate	1,041		1,041		85		301		301		32
Home equity	0		0		0		0		0		0
Installment	0		0		0		0		0		0
Total	10,377		10,377		5,023		2,749		2,749		1,160

Total
Commercial & industrial	47,384		50,203		4,908		37,633		43,500		667
Lease financing	295		295		0		22		22		0
Construction real estate	6		25		0		9		26		0
Commercial real estate	19,669		27,196		30		25,022		32,884		461
Residential real estate	15,978		18,077		85		17,598		20,276		32
Home equity	5,244		6,158		0		6,351		7,461		0
Installment	195		328		0		174		563		0
Total	$	88,771	$	102,282	$	5,023	$	86,809	$	104,732	$	1,160

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



	Three months ended
	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	$	34,553	$	212	$	9,714	$	73
Lease financing	298		0		0		0
Construction real estate	7		0		25		1
Commercial real estate	20,731		98		27,516		140
Residential real estate	15,787		69		9,173		76
Home equity	5,735		28		5,222		27
Installment	185		1		305		1
Total	77,296		408		51,955		318

Loans with an allowance recorded
Commercial & industrial	5,851		43		309		6
Lease financing	0		0		0		0
Construction real estate	0		0		0		0
Commercial real estate	1,707		4		358		3
Residential real estate	670		6		1,042		7
Home equity	0		0		101		1
Installment	0		0		0		0
Total	8,228		53		1,810		17

Total
Commercial & industrial	40,404		255		10,023		79
Lease financing	298		0		0		0
Construction real estate	7		0		25		1
Commercial real estate	22,438		102		27,874		143
Residential real estate	16,457		75		10,215		83
Home equity	5,735		28		5,323		28
Installment	185		1		305		1
Total	$	85,524	$	461	$	53,765	$	335



	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	$	35,267	$	491	$	8,863	$	99
Lease financing	206		0		27		0
Construction real estate	8		0		26		2
Commercial real estate	21,658		201		24,485		239
Residential real estate	16,290		155		8,407		123
Home equity	5,940		66		4,933		47
Installment	181		2		288		1
Total	79,550		915		47,029		511

Loans with an allowance recorded
Commercial & industrial	4,214		86		262		6
Lease financing	0		0		0		0
Construction real estate	0		0		0		0
Commercial real estate	1,641		23		1,278		6
Residential real estate	547		8		1,047		14
Home equity	0		0		100		2
Installment	0		0		0		0
Total	6,402		117		2,687		28

Total
Commercial & industrial	39,481		577		9,125		105
Lease financing	206		0		27		0
Construction real estate	8		0		26		2
Commercial real estate	23,299		224		25,763		245
Residential real estate	16,837		163		9,454		137
Home equity	5,940		66		5,033		49
Installment	181		2		288		1
Total	$	85,952	$	1,032	$	49,716	$	539

Changes in Other Real Estate Owned

Changes in OREO were as follows:



	Three months ended						Six months ended
	June 30,						June 30,
(Dollars in thousands)	2019			2018			2019			2018
Balance at beginning of period	$	1,665		$	1,065		$	1,401		$	2,781
Additions
Commercial & industrial	136			1,020			136			1,190
Residential real estate	768			525			1,272			984
Total additions	904			1,545			1,408			2,174
Disposals
Commercial & industrial	(248		)	(326		)	(270		)	(2,430		)
Residential real estate	(223		)	(292		)	(384		)	(410		)
Total disposals	(471		)	(618		)	(654		)	(2,840		)
Valuation adjustment
Commercial & industrial	(55		)	0			(55		)	(97		)
Residential real estate	(622		)	(139		)	(679		)	(165		)
Total valuation adjustment	(677		)	(139		)	(734		)	(262		)
Balance at end of period	$	1,421		$	1,853		$	1,421		$	1,853