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ALLOWANCE FOR LOAN AND LEASE LOSSES | 9 Months Ended
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Sep. 30, 2017
Receivables [Abstract] |
ALLOWANCE FOR LOAN AND LEASE LOSSES | ALLOWANCE FOR LOAN AND LEASE LOSSES Loans and leases. 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. Covered/formerly covered loans. The majority of covered/formerly covered loans are purchased impaired loans, whereby First Financial is required to periodically re-estimate the expected cash flows on the loans. First Financial updated the valuations related to covered/formerly covered loans during the third quarter of 2017. Changes in the allowance for loan and lease losses were as follows:
|  | Three months ended |  | Nine months ended
|  | September 30, |  | September 30,
(Dollars in thousands) |  | 2017 |  | 2016 |  | 2017 |  | 2016
Changes in the allowance for loan and lease losses on loans, excluding covered/formerly covered loans
Balance at beginning of period |  | $ | 48,351 |  |  | $ | 46,931 |  |  | $ | 49,422 |  |  | $ | 43,149 |
Provision for loan and lease losses |  | 4,462 |  |  | 1,886 |  |  | 7,451 |  |  | 7,381 |
Loans charged-off |  | (4,485 | ) |  | (1,131 | ) |  | (10,935 | ) |  | (4,547 | )
Recoveries |  | 825 |  |  | 1,206 |  |  | 3,215 |  |  | 2,909 |
Balance at end of period |  | $ | 49,153 |  |  | $ | 48,892 |  |  | $ | 49,153 |  |  | $ | 48,892 |
Changes in the allowance for loan and lease losses on loans on covered/formerly covered loans
Balance at beginning of period |  | $ | 6,522 |  |  | $ | 9,777 |  |  | $ | 8,539 |  |  | $ | 10,249 |
Provision for loan and lease losses |  | (1,509 | ) |  | (199 | ) |  | (3,664 | ) |  | (2 | )
Loans charged-off |  | (14 | ) |  | (1,419 | ) |  | (812 | ) |  | (3,147 | )
Recoveries |  | 382 |  |  | 567 |  |  | 1,318 |  |  | 1,626 |
Balance at end of period |  | $ | 5,381 |  |  | $ | 8,726 |  |  | $ | 5,381 |  |  | $ | 8,726 |
Changes in the allowance for loan and lease losses |  |  |  |  |  |
Balance at beginning of period |  | $ | 54,873 |  |  | $ | 56,708 |  |  | $ | 57,961 |  |  | $ | 53,398 |
Provision for loan and lease losses |  | 2,953 |  |  | 1,687 |  |  | 3,787 |  |  | 7,379 |
Loans charged-off |  | (4,499 | ) |  | (2,550 | ) |  | (11,747 | ) |  | (7,694 | )
Recoveries |  | 1,207 |  |  | 1,773 |  |  | 4,533 |  |  | 4,535 |
Balance at end of period |  | $ | 54,534 |  |  | $ | 57,618 |  |  | $ | 54,534 |  |  | $ | 57,618 |
Changes in the allowance for loan and lease losses by loan category were as follows:
|  | Three months ended September 30, 2017
|  |  |  |  |  | Real Estate |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Commercial and industrial |  | Lease financing |  | Construction |  | Commercial |  | Residential |  | Home Equity |  | Installment |  | Credit card |  | Total
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 18,313 |  |  | $ | 550 |  |  | $ | 3,416 |  |  | $ | 21,717 |  |  | $ | 5,016 |  |  | $ | 4,138 |  |  | $ | 355 |  |  | $ | 1,368 |  |  | $ | 54,873 |
Provision for loan and lease losses |  | 3,024 |  |  | 507 |  |  | (178 | ) |  | (1,003 | ) |  | (243 | ) |  | 819 |  |  | (80 | ) |  | 107 |  |  | 2,953 |
Gross charge-offs |  | (4,122 | ) |  | 0 |  |  | 0 |  |  | (58 | ) |  | (23 | ) |  | (71 | ) |  | (24 | ) |  | (201 | ) |  | (4,499 | )
Recoveries |  | 325 |  |  | 0 |  |  | 0 |  |  | 585 |  |  | 70 |  |  | 110 |  |  | 74 |  |  | 43 |  |  | 1,207 |
Total net charge-offs |  | (3,797 | ) |  | 0 |  |  | 0 |  |  | 527 |  |  | 47 |  |  | 39 |  |  | 50 |  |  | (158 | ) |  | (3,292 | )
Ending allowance for loan and lease losses |  | $ | 17,540 |  |  | $ | 1,057 |  |  | $ | 3,238 |  |  | $ | 21,241 |  |  | $ | 4,820 |  |  | $ | 4,996 |  |  | $ | 325 |  |  | $ | 1,317 |  |  | $ | 54,534 |
|  | Three months ended September 30, 2016
|  |  |  |  |  | Real Estate |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Commercial and industrial |  | Lease financing |  | Construction |  | Commercial |  | Residential |  | Home Equity |  | Installment |  | Credit card |  | Total
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 20,897 |  |  | $ | 1,881 |  |  | $ | 2,893 |  |  | $ | 22,784 |  |  | $ | 3,292 |  |  | $ | 3,002 |  |  | $ | 383 |  |  | $ | 1,576 |  |  | $ | 56,708 |
Provision for loan and lease losses |  | (720 | ) |  | (1,011 | ) |  | 232 |  |  | 2,628 |  |  | (13 | ) |  | 275 |  |  | 168 |  |  | 128 |  |  | 1,687 |
Loans charged off |  | (296 | ) |  | 0 |  |  | (64 | ) |  | (1,135 | ) |  | (90 | ) |  | (475 | ) |  | (223 | ) |  | (267 | ) |  | (2,550 | )
Recoveries |  | 327 |  |  | 0 |  |  | 6 |  |  | 997 |  |  | 38 |  |  | 257 |  |  | 56 |  |  | 92 |  |  | 1,773 |
Total net charge-offs |  | 31 |  |  | 0 |  |  | (58 | ) |  | (138 | ) |  | (52 | ) |  | (218 | ) |  | (167 | ) |  | (175 | ) |  | (777 | )
Ending allowance for loan and lease losses |  | $ | 20,208 |  |  | $ | 870 |  |  | $ | 3,067 |  |  | $ | 25,274 |  |  | $ | 3,227 |  |  | $ | 3,059 |  |  | $ | 384 |  |  | $ | 1,529 |  |  | $ | 57,618 |
|  | Nine months ended September 30, 2017
|  |  |  |  |  | Real Estate |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Commercial and industrial |  | Lease financing |  | Construction |  | Commercial |  | Residential |  | Home equity |  | Installment |  | Credit card |  | Total
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 19,225 |  |  | $ | 716 |  |  | $ | 3,282 |  |  | $ | 26,540 |  |  | $ | 3,208 |  |  | $ | 3,043 |  |  | $ | 388 |  |  | $ | 1,559 |  |  | $ | 57,961 |
Provision for loan and lease losses |  | 5,965 |  |  | 340 |  |  | (133 | ) |  | (6,510 | ) |  | 1,781 |  |  | 2,150 |  |  | (52 | ) |  | 246 |  |  | 3,787 |
Loans charged off |  | (8,930 | ) |  | 0 |  |  | 0 |  |  | (1,028 | ) |  | (307 | ) |  | (635 | ) |  | (199 | ) |  | (648 | ) |  | (11,747 | )
Recoveries |  | 1,280 |  |  | 1 |  |  | 89 |  |  | 2,239 |  |  | 138 |  |  | 438 |  |  | 188 |  |  | 160 |  |  | 4,533 |
Total net charge-offs |  | (7,650 | ) |  | 1 |  |  | 89 |  |  | 1,211 |  |  | (169 | ) |  | (197 | ) |  | (11 | ) |  | (488 | ) |  | (7,214 | )
Ending allowance for loan and lease losses |  | $ | 17,540 |  |  | $ | 1,057 |  |  | $ | 3,238 |  |  | $ | 21,241 |  |  | $ | 4,820 |  |  | $ | 4,996 |  |  | $ | 325 |  |  | $ | 1,317 |  |  | $ | 54,534 |
|  | As of September 30, 2017
|  |  |  |  |  | Real Estate |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Commercial and industrial |  | Lease financing |  | Construction |  | Commercial |  | Residential |  | Home equity |  | Installment |  | Credit card |  | Total
Ending allowance balance attributable to loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 179 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 44 |  |  | $ | 160 |  |  | $ | 2 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 385 |
Collectively evaluated for impairment |  | 17,361 |  |  | 1,057 |  |  | 3,238 |  |  | 21,197 |  |  | 4,660 |  |  | 4,994 |  |  | 325 |  |  | 1,317 |  |  | 54,149 |
Ending allowance for loan and lease losses |  | $ | 17,540 |  |  | $ | 1,057 |  |  | $ | 3,238 |  |  | $ | 21,241 |  |  | $ | 4,820 |  |  | $ | 4,996 |  |  | $ | 325 |  |  | $ | 1,317 |  |  | $ | 54,534 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 12,325 |  |  | $ | 87 |  |  | $ | 824 |  |  | $ | 23,597 |  |  | $ | 8,644 |  |  | $ | 4,079 |  |  | $ | 254 |  |  | $ | 0 |  |  | $ | 49,810 |
Collectively evaluated for impairment |  | 1,873,768 |  |  | 85,927 |  |  | 420,117 |  |  | 2,499,790 |  |  | 469,320 |  |  | 490,263 |  |  | 43,396 |  |  | 44,646 |  |  | 5,927,227 |
Total loans |  | $ | 1,886,093 |  |  | $ | 86,014 |  |  | $ | 420,941 |  |  | $ | 2,523,387 |  |  | $ | 477,964 |  |  | $ | 494,342 |  |  | $ | 43,650 |  |  | $ | 44,646 |  |  | $ | 5,977,037 |
|  | Nine months ended September 30, 2016
|  |  |  |  |  | Real Estate |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Commercial and industrial |  | Lease financing |  | Construction |  | Commercial |  | Residential |  | Home equity |  | Installment |  | Credit card |  | Total
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 16,995 |  |  | $ | 821 |  |  | $ | 1,810 |  |  | $ | 23,656 |  |  | $ | 4,014 |  |  | $ | 3,943 |  |  | $ | 386 |  |  | $ | 1,773 |  |  | $ | 53,398 |
Provision for loan and lease losses |  | 3,284 |  |  | 48 |  |  | 1,118 |  |  | 3,491 |  |  | (806 | ) |  | (247 | ) |  | 107 |  |  | 384 |  |  | 7,379 |
Loans charged off |  | (1,040 | ) |  | 0 |  |  | (95 | ) |  | (3,993 | ) |  | (163 | ) |  | (1,213 | ) |  | (326 | ) |  | (864 | ) |  | (7,694 | )
Recoveries |  | 969 |  |  | 1 |  |  | 234 |  |  | 2,120 |  |  | 182 |  |  | 576 |  |  | 217 |  |  | 236 |  |  | 4,535 |
Total net charge-offs |  | (71 | ) |  | 1 |  |  | 139 |  |  | (1,873 | ) |  | 19 |  |  | (637 | ) |  | (109 | ) |  | (628 | ) |  | (3,159 | )
Ending allowance for loan and lease losses |  | $ | 20,208 |  |  | $ | 870 |  |  | $ | 3,067 |  |  | $ | 25,274 |  |  | $ | 3,227 |  |  | $ | 3,059 |  |  | $ | 384 |  |  | $ | 1,529 |  |  | $ | 57,618 |
|  | As of December 31, 2016
|  |  |  |  |  | Real Estate |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Commercial and industrial |  | Lease financing |  | Construction |  | Commercial |  | Residential |  | Home equity |  | Installment |  | Credit card |  | Total
Ending allowance balance attributable to loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 550 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 593 |  |  | $ | 179 |  |  | $ | 2 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,324 |
Collectively evaluated for impairment |  | 18,675 |  |  | 716 |  |  | 3,282 |  |  | 25,947 |  |  | 3,029 |  |  | 3,041 |  |  | 388 |  |  | 1,559 |  |  | 56,637 |
Ending allowance for loan and lease losses |  | $ | 19,225 |  |  | $ | 716 |  |  | $ | 3,282 |  |  | $ | 26,540 |  |  | $ | 3,208 |  |  | $ | 3,043 |  |  | $ | 388 |  |  | $ | 1,559 |  |  | $ | 57,961 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 13,203 |  |  | $ | 195 |  |  | $ | 0 |  |  | $ | 20,460 |  |  | $ | 9,601 |  |  | $ | 4,074 |  |  | $ | 437 |  |  | $ | 0 |  |  | $ | 47,970 |
Collectively evaluated for impairment |  | 1,768,745 |  |  | 92,913 |  |  | 399,434 |  |  | 2,407,117 |  |  | 491,379 |  |  | 456,314 |  |  | 50,202 |  |  | 43,408 |  |  | 5,709,512 |
Total loans |  | $ | 1,781,948 |  |  | $ | 93,108 |  |  | $ | 399,434 |  |  | $ | 2,427,577 |  |  | $ | 500,980 |  |  | $ | 460,388 |  |  | $ | 50,639 |  |  | $ | 43,408 |  |  | $ | 5,757,482 |

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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