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ALLOWANCE FOR LOAN AND LEASE LOSSES
 9 Months Ended
Sep. 30, 2019
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 a guarantor or from the liquidation of collateral.

Changes in the ALLL by loan category were as follows:
 
 
Three months ended September 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
 
$
24,586

 
$
1,393

 
$
2,919

 
$
20,357

 
$
5,008

 
$
5,307

 
$
395

 
$
1,584

 
$
61,549

Provision for loan and lease losses
 
2,654

 
(388
)
 
(152
)
 
1,684

 
702

 
68

 
(2
)
 
662

 
5,228

Gross charge-offs
 
(9,556
)
 
0

 
0

 
(535
)
 
(278
)
 
(627
)
 
(65
)
 
(598
)
 
(11,659
)
Recoveries
 
556

 
0

 
0

 
347

 
64

 
335

 
93

 
39

 
1,434

Total net charge-offs
 
(9,000
)
 
0

 
0

 
(188
)
 
(214
)
 
(292
)
 
28

 
(559
)
 
(10,225
)
Ending allowance for loan and lease losses
 
$
18,240

 
$
1,005

 
$
2,767

 
$
21,853

 
$
5,496

 
$
5,083

 
$
421

 
$
1,687

 
$
56,552

 
 
Three months ended September 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
 
$
17,528

 
$
797

 
$
3,985

 
$
20,511

 
$
4,668

 
$
4,801

 
$
290

 
$
1,496

 
$
54,076

Provision for loan and lease losses
 
2,035

 
287

 
(114
)
 
959

 
50

 
63

 
(288
)
 
246

 
3,238

Loans charged off
 
(232
)
 
0

 
0

 
(902
)
 
(145
)
 
(351
)
 
(43
)
 
(390
)
 
(2,063
)
Recoveries
 
627

 
0

 
146

 
786

 
71

 
419

 
351

 
64

 
2,464

Total net charge-offs
 
395

 
0

 
146

 
(116
)
 
(74
)
 
68

 
308

 
(326
)
 
401

Ending allowance for loan and lease losses
 
$
19,958

 
$
1,084

 
$
4,017

 
$
21,354

 
$
4,644

 
$
4,932

 
$
310

 
$
1,416

 
$
57,715

  
 
Nine months ended September 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
 
$
18,746

 
$
1,130

 
$
3,413

 
$
21,048

 
$
4,964

 
$
5,348

 
$
362

 
$
1,531

 
$
56,542

Provision for loan and lease losses
 
22,164

 
(25
)
 
(714
)
 
1,966

 
841

 
427

 
49

 
1,261

 
25,969

Loans charged off
 
(23,757
)
 
(100
)
 
0

 
(1,835
)
 
(510
)
 
(1,784
)
 
(192
)
 
(1,228
)
 
(29,406
)
Recoveries
 
1,087

 
0

 
68

 
674

 
201

 
1,092

 
202

 
123

 
3,447

Total net charge-offs
 
(22,670
)
 
(100
)
 
68

 
(1,161
)
 
(309
)
 
(692
)
 
10

 
(1,105
)
 
(25,959
)
Ending allowance for loan and lease losses
 
$
18,240

 
$
1,005

 
$
2,767

 
$
21,853

 
$
5,496

 
$
5,083

 
$
421

 
$
1,687

 
$
56,552

 
 
Nine months ended September 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
 
$
17,598

 
$
675

 
$
3,577

 
$
20,930

 
$
4,683

 
$
4,935

 
$
307

 
$
1,316

 
$
54,021

Provision for loan and lease losses
 
6,252

 
408

 
294

 
1,155

 
136

 
(60
)
 
(201
)
 
1,292

 
9,276

Loans charged off
 
(5,473
)
 
0

 
0

 
(3,156
)
 
(342
)
 
(978
)
 
(277
)
 
(1,328
)
 
(11,554
)
Recoveries
 
1,581

 
1

 
146

 
2,425

 
167

 
1,035

 
481

 
136

 
5,972

Total net charge-offs
 
(3,892
)
 
1

 
146

 
(731
)
 
(175
)
 
57

 
204

 
(1,192
)
 
(5,582
)
Ending allowance for loan and lease losses
 
$
19,958

 
$
1,084

 
$
4,017

 
$
21,354

 
$
4,644

 
$
4,932

 
$
310

 
$
1,416

 
$
57,715

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 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
 
$
91

 
$
43

 
$
0

 
$
127

 
$
18

 
$
0

 
$
0

 
$
0

 
$
279

Collectively evaluated for impairment
 
18,149

 
962

 
2,767

 
21,726

 
5,478

 
5,083

 
421

 
1,687

 
56,273

Ending allowance for loan and lease losses
 
$
18,240

 
$
1,005

 
$
2,767

 
$
21,853

 
$
5,496

 
$
5,083

 
$
421

 
$
1,687

 
$
56,552

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
36,917

 
$
284

 
$
5

 
$
19,756

 
$
16,133

 
$
5,944

 
$
104

 
$
0

 
$
79,143

Collectively evaluated for impairment
 
2,433,100

 
92,332

 
515,955

 
3,996,152

 
1,038,874

 
770,941

 
88,171

 
49,010

 
8,984,535

Total loans
 
$
2,470,017

 
$
92,616

 
$
515,960

 
$
4,015,908

 
$
1,055,007

 
$
776,885

 
$
88,275

 
$
49,010

 
$
9,063,678



 
 
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
 
$
667

 
$
0

 
$
0

 
$
461

 
$
32

 
$
0

 
$
0

 
$
0

 
$
1,160

Collectively evaluated for impairment
 
18,079

 
1,130

 
3,413

 
20,587

 
4,932

 
5,348

 
362

 
1,531

 
55,382

Ending allowance for loan and lease losses
 
$
18,746

 
$
1,130

 
$
3,413

 
$
21,048

 
$
4,964

 
$
5,348

 
$
362

 
$
1,531

 
$
56,542

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
37,633

 
$
22

 
$
9

 
$
25,022

 
$
17,598

 
$
6,351

 
$
174

 
$
0

 
$
86,809

Collectively evaluated for impairment
 
2,477,028

 
93,393

 
548,926

 
3,729,659

 
938,048

 
810,931

 
93,038

 
46,382

 
8,737,405

Total loans
 
$
2,514,661

 
$
93,415

 
$
548,935

 
$
3,754,681

 
$
955,646

 
$
817,282

 
$
93,212

 
$
46,382

 
$
8,824,214