LOANS (Tables)

12 Months Ended

Dec. 31, 2017

LOANS - Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans [Abstract]

Commercial and Consumer Credit Exposure by Risk Attribute

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



	As of December 31, 2017
			Real Estate
(Dollars in thousands)	Commercial and industrial		Construction		Commercial		Lease financing		Total
Pass	$	1,882,464	$	467,687	$	2,446,999	$	88,078	$	4,885,228
Special Mention	6,226		0		4,436		0		10,662
Substandard	24,053		43		38,656		1,269		64,021
Doubtful	0		0		0		0		0
Total	$	1,912,743	$	467,730	$	2,490,091	$	89,347	$	4,959,911



	Residential real estate		Home Equity		Installment		Credit card		Total
Performing	$	463,459	$	489,148	$	41,331	$	46,691	$	1,040,629
Nonperforming	7,932		4,456		255		0		12,643
Total	$	471,391	$	493,604	$	41,586	$	46,691	$	1,053,272



	As of December 31, 2016
			Real Estate
(Dollars in thousands)	Commercial and industrial		Construction		Commercial		Lease financing		Total
Pass	$	1,725,451	$	398,155	$	2,349,662	$	92,540	$	4,565,808
Special Mention	18,256		1,258		15,584		108		35,206
Substandard	38,241		21		62,331		460		101,053
Doubtful	0		0		0		0		0
Total	$	1,781,948	$	399,434	$	2,427,577	$	93,108	$	4,702,067



	Residential real estate		Home equity		Installment		Credit card		Total
Performing	$	491,380	$	456,314	$	50,202	$	43,408	$	1,041,304
Nonperforming	9,600		4,074		437		0		14,111
Total	$	500,980	$	460,388	$	50,639	$	43,408	$	1,055,415

Loan Delinquency, including Nonaccrual Loans

Loan delinquency, including nonaccrual loans, was as follows:



	As of December 31, 2017
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 90 days past due		Total past due		Current		Subtotal		Purchased impaired		Total		> 90 days past due and still accruing
Loans
Commercial and industrial	$	755	$	1,657	$	5,078	$	7,490	$	1,901,821	$	1,909,311	$	3,432	$	1,912,743	$	0
Lease financing	485		0		0		485		88,862		89,347		0		89,347		0
Construction real estate	234		0		0		234		467,216		467,450		280		467,730		0
Commercial real estate	1,716		201		8,777		10,694		2,419,969		2,430,663		59,428		2,490,091		0
Residential real estate	526		811		1,992		3,329		430,500		433,829		37,562		471,391		0
Home equity	2,716		394		1,753		4,863		485,127		489,990		3,614		493,604		0
Installment	179		29		205		413		40,529		40,942		644		41,586		0
Credit card	285		87		62		434		46,257		46,691		0		46,691		62
Total	$	6,896	$	3,179	$	17,867	$	27,942	$	5,880,281	$	5,908,223	$	104,960	$	6,013,183	$	62



	As of December 31, 2016
(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 and industrial	$	1,257	$	208	$	1,339	$	2,804	$	1,773,939	$	1,776,743	$	5,205	$	1,781,948	$	0
Lease financing	137		0		115		252		92,856		93,108		0		93,108		0
Construction real estate	0		0		0		0		398,877		398,877		557		399,434		0
Commercial real estate	777		134		5,589		6,500		2,339,327		2,345,827		81,750		2,427,577		2,729
Residential real estate	821		37		2,381		3,239		450,631		453,870		47,110		500,980		0
Home equity	195		145		1,776		2,116		456,143		458,259		2,129		460,388		0
Installment	24		1		258		283		49,058		49,341		1,298		50,639		0
Credit card	457		177		142		776		42,632		43,408		0		43,408		142
Total	$	3,668	$	702	$	11,600	$	15,970	$	5,603,463	$	5,619,433	$	138,049	$	5,757,482	$	2,871

Loans Restructured During Period

The following table provides information on loan modifications classified as TDRs during the years ended December 31, 2017, 2016 and 2015:



	Years ended December 31,
	2017					2016					2015
(Dollars in thousands)	Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance		Number of loans	Pre-modification loan balance		Period end balance
Commercial and industrial	7	$	5,724	$	5,661	18	$	3,402	$	3,508	33	$	9,035	$	8,203
Construction real estate	0	0		0		0	0		0		0	0		0
Commercial real estate	8	1,816		1,758		16	5,200		4,752		18	20,249		16,474
Residential real estate	6	416		315		5	840		787		10	1,292		1,238
Home equity	1	39		39		5	165		156		25	2,859		2,221
Installment	0	0		0		3	9		9		10	97		97
Total	22	$	7,995	$	7,773	47	$	9,616	$	9,212	96	$	33,532	$	28,233

Loans Restructured, Modifications

The following table provides information on how TDRs were modified during the years ended December 31, 2017, 2016 and 2015:



	Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Extended maturities	$	3,261	$	2,571	$	12,883
Adjusted interest rates	2,767		0		0
Combination of rate and maturity changes	489		3,046		1,244
Forbearance	1,181		88		260
Other ⁽¹⁾	75		3,507		13,846
Total	$	7,773	$	9,212	$	28,233

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

Loan Restructuring, Loans with a Payment Default Within 12 Months of Loan Modification

Nonaccrual, Restructured and Impaired Loans

The following table provides information on impaired loans, excluding purchased impaired loans, as of December 31:



(Dollars in thousands)	2017		2016		2015
Impaired loans
Nonaccrual loans ⁽¹⁾
Commercial and industrial	$	5,229	$	2,419	$	8,405
Lease financing	82		195		122
Construction real estate	29		0		0
Commercial real estate	10,616		6,098		9,418
Residential real estate	4,140		5,251		5,027
Home equity	3,743		3,400		4,898
Installment	243		367		127
Total nonaccrual loans	24,082		17,730		27,997
Accruing troubled debt restructurings	17,545		30,240		28,876
Total impaired loans	$	41,627	$	47,970	$	56,873

Interest income effect
Gross amount of interest that would have been recorded under original terms	$	3,397	$	2,848	$	3,595
Interest included in income
Nonaccrual loans	535		375		475
Troubled debt restructurings	710		876		682
Total interest included in income	1,245		1,251		1,157
Net impact on interest income	$	2,152	$	1,597	$	2,438

Commitments outstanding to borrowers with nonaccrual loans	$	0	$	0	$	1

⁽¹⁾ Nonaccrual loans include nonaccrual TDRs of $6.4 million, $5.1 million and $9.3 million as of December 31, 2017, 2016 and 2015, respectively.

Investment in Impaired Loans

First Financial's investment in impaired loans, excluding purchased impaired loans, is as follows:



	December 31, 2017						December 31, 2016
(Dollars in thousands)	Current balance		Contractual principal balance		Related allowance		Current balance		Contractual principal balance		Related allowance
Loans with no related allowance recorded
Commercial and industrial	$	7,162	$	8,460	$	0	$	12,134	$	12,713	$	0
Lease financing	82		82		0		195		195		0
Construction real estate	29		60		0		0		0		0
Commercial real estate	18,423		20,837		0		12,232		14,632		0
Residential real estate	6,876		8,145		0		8,412		9,648		0
Home equity	4,356		5,399		0		3,973		5,501		0
Installment	255		422		0		437		603		0
Total	37,183		43,405		0		37,383		43,292		0

Loans with an allowance recorded
Commercial and industrial	169		169		169		1,069		1,071		550
Lease financing	0		0		0		0		0		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	3,119		3,120		448		8,228		8,277		593
Residential real estate	1,056		1,063		160		1,189		1,189		179
Home equity	100		100		2		101		101		2
Installment	0		0		0		0		0		0
Total	4,444		4,452		779		10,587		10,638		1,324

Total
Commercial and industrial	7,331		8,629		169		13,203		13,784		550
Lease financing	82		82		0		195		195		0
Construction real estate	29		60		0		0		0		0
Commercial real estate	21,542		23,957		448		20,460		22,909		593
Residential real estate	7,932		9,208		160		9,601		10,837		179
Home equity	4,456		5,499		2		4,074		5,602		2
Installment	255		422		0		437		603		0
Total	$	41,627	$	47,857	$	779	$	47,970	$	53,930	$	1,324



	Years ended December 31,
	2017				2016				2015
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized		Average balance		Interest income recognized
Loans with no related allowance recorded
Commercial and industrial	$	13,167	$	280	$	13,619	$	309	$	10,468	$	258
Lease financing	112		4		150		3		24		0
Construction real estate	601		1		0		0		150		0
Commercial real estate	20,935		563		14,252		357		19,363		344
Residential real estate	7,616		196		7,752		199		8,143		184
Home equity	4,032		99		4,830		86		5,648		82
Installment	332		4		366		7		380		7
Total	46,795		1,147		40,969		961		44,176		875

Loans with an allowance recorded
Commercial and industrial	1,204		28		1,098		37		1,409		26
Lease financing	0		0		214		8		0		0
Construction real estate	0		0		0		0		0		0
Commercial real estate	2,634		40		7,792		211		12,928		213
Residential real estate	1,112		26		1,374		30		1,696		40
Home equity	101		4		101		4		101		3
Installment	0		0		0		0		0		0
Total	5,051		98		10,579		290		16,134		282

Total
Commercial and industrial	14,371		308		14,717		346		11,877		284
Lease financing	112		4		364		11		24		0
Construction real estate	601		1		0		0		150		0
Commercial real estate	23,569		603		22,044		568		32,291		557
Residential real estate	8,728		222		9,126		229		9,839		224
Home equity	4,133		103		4,931		90		5,749		85
Installment	332		4		366		7		380		7
Total	$	51,846	$	1,245	$	51,548	$	1,251	$	60,310	$	1,157

Changes in Other Real Estate Owned

Changes in OREO were as follows:



	Years ended December 31,
(Dollars in thousands)	2017			2016			2015
Balance at beginning of year	$	6,284		$	13,254		$	22,674
Additions
Commercial	1,732			1,850			5,187
Residential	2,387			1,022			3,211
Total additions	4,119			2,872			8,398
Disposals
Commercial	(5,409		)	(6,993		)	(12,722		)
Residential	(1,574		)	(2,363		)	(3,095		)
Total disposals	(6,983		)	(9,356		)	(15,817		)
Valuation adjustments
Commercial	(439		)	(345		)	(1,617		)
Residential	(200		)	(141		)	(384		)
Total valuation adjustments	(639		)	(486		)	(2,001		)
Balance at end of year	$	2,781		$	6,284		$	13,254