Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
DOCUMENT AND ENTITY INFORMATION [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'FFBC | ' |
Entity Registrant Name | 'FIRST FINANCIAL BANCORP /OH/ | ' |
Entity Central Index Key | '0000708955 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 57,652,925 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $177,698 | $134,502 |
Interest-bearing deposits with other banks | 10,414 | 24,341 |
Investment securities available-for-sale, at market value (cost $875,928 at September 30, 2013 and $1,017,104 at December 31, 2012) | 854,747 | 1,032,096 |
Investment securities held-to-maturity (market value $661,685 at September 30, 2013 and $778,474 at December 31, 2012) | 669,093 | 770,755 |
Other investments | 75,945 | 71,492 |
Loans held for sale | 10,704 | 16,256 |
Loans | ' | ' |
Commercial | 960,016 | 861,033 |
Real estate-construction | 90,089 | 73,517 |
Real estate-commercial | 1,493,969 | 1,417,008 |
Real estate-residential | 352,830 | 318,210 |
Installment | 49,273 | 56,810 |
Home equity | 373,839 | 367,500 |
Credit card | 34,285 | 34,198 |
Lease financing | 76,615 | 50,788 |
Total loans, excluding covered loans | 3,430,916 | 3,179,064 |
Less: Allowance for loan and lease losses - uncovered | 45,514 | 47,777 |
Net loans | 3,385,402 | 3,131,287 |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 518,524 | 748,116 |
Less: Allowance for loan and lease losses - covered | 23,259 | 45,190 |
Net loans - covered | 495,265 | 702,926 |
Loans and Leases Receivable, Net Reported Amount, Covered and Not Covered | 3,880,667 | 3,834,213 |
Premises and equipment | 139,125 | 146,716 |
Goodwill | 95,050 | 95,050 |
Other intangibles | 6,249 | 7,648 |
FDIC indemnification asset | 78,132 | 119,607 |
Interest Receivable and Other Assets | 255,617 | 244,372 |
Total assets | 6,253,441 | 6,497,048 |
Deposits | ' | ' |
Interest-bearing | 1,068,067 | 1,160,815 |
Savings | 1,593,895 | 1,623,614 |
Time | 926,029 | 1,068,637 |
Total interest-bearing deposits | 3,587,991 | 3,853,066 |
Noninterest-bearing | 1,141,016 | 1,102,774 |
Total deposits | 4,729,007 | 4,955,840 |
Federal funds purchased and securities sold under agreements to repurchase | 105,472 | 122,570 |
Federal Home Loan Bank short-term borrowings | 518,200 | 502,000 |
Total short-term borrowings | 623,672 | 624,570 |
Long-term debt | 61,088 | 75,202 |
Total borrowed funds | 684,760 | 699,772 |
Accrued interest and other liabilities | 147,635 | 131,011 |
Total liabilities | 5,561,402 | 5,786,623 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock - no par value Authorized - 160,000,000 shares Issued - 68,730,731 shares in 2013 and 2012 | 577,429 | 579,293 |
Retained earnings | 328,993 | 330,004 |
Accumulated other comprehensive loss | -29,294 | -18,677 |
Treasury stock, at cost, 11,028,287 shares in 2013 and 10,684,496 shares in 2012 | -185,089 | -180,195 |
Total shareholders' equity | 692,039 | 710,425 |
Total liabilities and shareholders' equity | $6,253,441 | $6,497,048 |
CONSOLIDATED_BALANCE_SHEETS_CO
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $875,928 | $1,017,104 |
Held-to-maturity Securities, Fair Value | $661,685 | $778,474 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 160,000,000 | 160,000,000 |
Common Stock, Shares, Issued | 68,730,731 | 68,730,731 |
Treasury Stock, Shares | 11,028,287 | 10,684,496 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income | ' | ' | ' | ' |
Loans, including fees | $52,908 | $59,536 | $163,955 | $189,362 |
Investment securities | ' | ' | ' | ' |
Taxable | 8,267 | 8,358 | 24,938 | 29,254 |
Tax-exempt | 541 | 111 | 1,681 | 366 |
Total interest on investment securities | 8,808 | 8,469 | 26,619 | 29,620 |
Other earning assets | -2,185 | -1,700 | -5,213 | -5,657 |
Total interest income | 59,531 | 66,305 | 185,361 | 213,325 |
Interest expense | ' | ' | ' | ' |
Deposits | 2,856 | 5,730 | 10,000 | 19,827 |
Short-term borrowings | 286 | 54 | 920 | 103 |
Long-term borrowings | 617 | 675 | 1,925 | 2,030 |
Total interest expense | 3,759 | 6,459 | 12,845 | 21,960 |
Net interest income | 55,772 | 59,846 | 172,516 | 191,365 |
Provision for loan and lease losses - uncovered | 1,413 | 3,613 | 6,863 | 15,235 |
Provision for loan and lease losses - covered | 5,293 | 6,622 | 6,052 | 25,620 |
Net interest income after provision for loan and lease losses | 49,066 | 49,611 | 159,601 | 150,510 |
Noninterest income | ' | ' | ' | ' |
Service charges on deposit accounts | 5,447 | 5,499 | 15,369 | 15,784 |
Trust and wealth management fees | 3,366 | 3,374 | 10,813 | 10,542 |
Bankcard income | 2,637 | 2,387 | 8,215 | 7,502 |
Net gains from sales of loans | 751 | 1,319 | 2,546 | 3,391 |
Gains on sales of investment securities | 0 | 2,617 | 1,724 | 2,617 |
FDIC loss sharing income | 5,555 | 8,496 | 7,105 | 29,592 |
Accelerated discount on covered loans | 1,711 | 3,798 | 5,581 | 11,207 |
Other | 2,824 | 3,340 | 9,251 | 15,665 |
Total noninterest income | 22,291 | 30,830 | 60,604 | 96,300 |
Noninterest expenses | ' | ' | ' | ' |
Salaries and employee benefits | 23,834 | 27,212 | 77,379 | 85,121 |
Pension settlement charges | 1,396 | 0 | 5,712 | 0 |
Net occupancy | 5,101 | 5,153 | 16,650 | 15,560 |
Furniture and equipment | 2,213 | 2,332 | 6,834 | 6,899 |
Data processing | 2,584 | 2,334 | 7,612 | 6,311 |
Marketing | 1,192 | 1,592 | 3,271 | 3,984 |
Communication | 865 | 788 | 2,479 | 2,595 |
Professional services | 1,528 | 1,304 | 5,095 | 5,602 |
State intangible tax | 1,010 | 961 | 3,028 | 2,957 |
FDIC assessments | 1,107 | 1,164 | 3,380 | 3,597 |
Loss (gain) - other real estate owned | 184 | 1,372 | 902 | 2,681 |
Loss (gain) - covered other real estate owned | 204 | -25 | -2,165 | 2,500 |
Loss sharing expense | 1,724 | 3,584 | 5,588 | 8,420 |
Other | 5,859 | 7,515 | 19,425 | 22,296 |
Total noninterest expenses | 48,801 | 55,286 | 155,190 | 168,523 |
Income before income taxes | 22,556 | 25,155 | 65,015 | 78,287 |
Income tax expense | 7,645 | 8,913 | 20,451 | 27,249 |
Net income | $14,911 | $16,242 | $44,564 | $51,038 |
Earnings per common share | ' | ' | ' | ' |
Basic | $0.26 | $0.28 | $0.78 | $0.88 |
Diluted | $0.26 | $0.28 | $0.77 | $0.87 |
Cash dividends declared per share | $0.27 | $0.30 | $0.79 | $0.90 |
Average common shares outstanding - basic | 57,201,390 | 57,976,943 | 57,309,934 | 57,902,102 |
Average common shares outstanding - diluted | 58,012,588 | 58,940,179 | 58,143,372 | 58,930,570 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $14,911 | $16,242 | $44,564 | $51,038 |
Other comprehensive (loss) income, net of tax | ' | ' | ' | ' |
Unrealized gains (losses) on investment securities arising during the period | -4,003 | -934 | -22,570 | 1,662 |
Change in retirement obligation | 1,166 | 419 | 11,976 | 1,129 |
Unrealized gain (loss) on derivatives | -818 | -182 | -2 | -182 |
Unrealized gain (loss) on foreign currency exchange | 6 | 14 | -21 | 26 |
Other comprehensive income (loss) | -3,649 | -683 | -10,617 | 2,635 |
Comprehensive income | $11,262 | $15,559 | $33,947 | $53,673 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balances at Dec. 31, 2011 | $712,221 | $579,871 | $331,351 | ($21,490) | ($177,511) |
Beginning Balances (in shares) at Dec. 31, 2011 | ' | 68,730,731 | ' | ' | -10,463,677 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 51,038 | ' | 51,038 | ' | ' |
Other comprehensive income (loss) | 2,635 | ' | ' | 2,635 | ' |
Cash dividends declared : | ' | ' | ' | ' | ' |
Common stock at $0.79 per share in 2013 and $0.90 per share in 2012 | -52,375 | ' | -52,375 | ' | ' |
Excess tax benefit on share-based compensation | 417 | 417 | ' | ' | ' |
Exercise of stock options, net of shares purchased (in shares) | ' | ' | ' | ' | 71,391 |
Exercise of stock options, net of shares purchased | 18 | -1,193 | ' | ' | 1,211 |
Restricted stock awards, net of forfeitures (in shares) | ' | ' | ' | ' | 172,471 |
Restricted stock awards, net of forfeitures | -1,075 | -4,053 | ' | ' | 2,978 |
Share-based compensation expense | 3,087 | 3,087 | ' | ' | ' |
Ending Balances at Sep. 30, 2012 | 715,966 | 578,129 | 330,014 | -18,855 | -173,322 |
Ending Balances (in shares) at Sep. 30, 2012 | ' | 68,730,731 | ' | ' | -10,219,815 |
Beginning Balances at Dec. 31, 2012 | 710,425 | 579,293 | 330,004 | -18,677 | -180,195 |
Beginning Balances (in shares) at Dec. 31, 2012 | ' | 68,730,731 | ' | ' | -10,684,496 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 44,564 | ' | 44,564 | ' | ' |
Other comprehensive income (loss) | -10,617 | ' | ' | -10,617 | ' |
Cash dividends declared : | ' | ' | ' | ' | ' |
Common stock at $0.79 per share in 2013 and $0.90 per share in 2012 | -45,575 | ' | -45,575 | ' | ' |
Purchase of common stock, in shares | ' | ' | ' | ' | -540,400 |
Purchase of common stock | -8,339 | ' | ' | ' | -8,339 |
Excess tax benefit on share-based compensation | 133 | 133 | ' | ' | ' |
Exercise of stock options, net of shares purchased (in shares) | ' | ' | ' | ' | 44,105 |
Exercise of stock options, net of shares purchased | -275 | -1,016 | ' | ' | 741 |
Restricted stock awards, net of forfeitures (in shares) | ' | ' | ' | ' | 152,504 |
Restricted stock awards, net of forfeitures | -1,326 | -4,030 | ' | ' | 2,704 |
Share-based compensation expense | 3,049 | 3,049 | ' | ' | ' |
Ending Balances at Sep. 30, 2013 | $692,039 | $577,429 | $328,993 | ($29,294) | ($185,089) |
Ending Balances (in shares) at Sep. 30, 2013 | ' | 68,730,731 | ' | ' | -11,028,287 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Common Stock, Dividends, Per Share, Declared | $0.27 | $0.30 | $0.79 | $0.90 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net income | $44,564 | $51,038 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan and lease losses | 12,915 | 40,855 |
Depreciation and amortization | 11,057 | 11,812 |
Stock-based compensation expense | 3,049 | 3,087 |
Pension expense (income) | 5,309 | -392 |
Net amortization of premiums/accretion of discounts on investment securities | 11,327 | 8,461 |
Gains on sales of investment securities | -1,724 | -2,617 |
Originations of loans held for sale | -126,881 | -173,115 |
Net gains from sales of loans held for sale | -2,546 | -3,391 |
Proceeds from sales of loans held for sale | 131,979 | 175,180 |
Deferred income taxes | -5,621 | -10,618 |
(Increase) decrease in interest receivable | -462 | 2,896 |
(Increase) decrease in cash surrender value of life insurance | -3,781 | 1,845 |
(Increase) decrease in prepaid expenses | -2,688 | 2,758 |
Decrease in indemnification asset | -41,475 | -42,533 |
Decrease in accrued expenses | -6,013 | -4,447 |
Decrease in interest payable | -418 | -1,281 |
Other | 13,699 | 2,438 |
Net cash provided by operating activities | 125,240 | 147,042 |
Investing activities | ' | ' |
Proceeds from sales of securities available-for-sale | 92,684 | 57,663 |
Proceeds from calls, paydowns and maturities of securities available-for-sale | 160,460 | 209,399 |
Purchases of securities available-for-sale | -109,816 | -465,303 |
Proceeds from calls, paydowns and maturities of securities held-to-maturity | 134,089 | 98,283 |
Purchases of securities held-to-maturity | 13,476 | 0 |
Net decrease in interest-bearing deposits with other banks | 13,927 | 353,903 |
Net increase in loans and leases - excluding covered loans | -261,546 | -121,810 |
Net decrease in covered assets | 180,074 | 191,069 |
Proceeds from disposal of other real estate owned | 23,590 | 30,017 |
Purchases of premises and equipment | -6,017 | -18,605 |
Net cash provided by investing activities | 213,969 | 334,616 |
Financing activities | ' | ' |
Net decrease in total deposits | -226,833 | -698,229 |
Net (decrease) increase in short-term borrowings | -898 | 271,759 |
Payments on long-term borrowings | -14,093 | -1,002 |
Cash dividends paid on common stock | -45,983 | -50,392 |
Treasury stock purchase | -8,339 | 0 |
Proceeds from exercise of stock options | 0 | 317 |
Excess tax benefit on share-based compensation | 133 | 417 |
Net cash used in financing activities | -296,013 | -477,130 |
Cash and cash equivalents: | ' | ' |
Net increase in cash and due from banks | 43,196 | 4,528 |
Cash and due from banks at beginning of period | 134,502 | 149,653 |
Cash and due from banks at end of period | $177,698 | $154,181 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The Consolidated Financial Statements of First Financial, a bank holding company principally serving Ohio, Indiana and Kentucky, include the accounts and operations of First Financial and its wholly-owned subsidiary – First Financial Bank, N.A. (First Financial Bank or the Bank). All significant intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications of prior periods’ amounts have been made to conform to the current period’s presentation and had no effect on net earnings. | |
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Actual realized amounts could differ materially from those estimates. | |
These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and serve to update the First Financial Bancorp. Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2012. These interim financial statements may not include all information and notes necessary to constitute a complete set of financial statements under GAAP applicable to annual periods and accordingly should be read in conjunction with the financial information contained in the Form 10-K. 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, 2012, has been derived from the audited financial statements in the Company’s 2012 Form 10-K. |
RECENTLY_ADOPTED_AND_ISSUED_AC
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2013 | |
Recently Adopted and Issued Accounting Standards [Abstract] | ' |
Recently Adopted and Issued Accounting Standards Disclosure [Text Block] | ' |
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | |
In December 2011, the FASB issued an update (ASU 2011-11, Disclosures About Offsetting Assets and Liabilities) which creates new disclosure requirements about the nature of an entity's rights of offset and related arrangements associated with its financial instruments and derivative instruments. These disclosure requirements are required for recognized financial and derivative instruments that are offset in accordance with the guidance in FASB ASC Topic 210-20-45, Balance Sheet - Offsetting - Other Presentation Matters, FASB ASC Topic 815-10-45, Derivatives and Hedging - Other Presentation Matters, or are subject to an enforceable master netting arrangement or similar agreement. Subsequently, the FASB issued ASU 2013-01, Scope Clarification of Disclosures about Offsetting Assets and Liabilities, which limits the scope of ASU 2011-11 to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and lending transactions. Companies are required to disclose information to enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on its financial position, including the effect or potential effect of rights of set-off associated with certain financial instruments and derivative instruments. The provisions of ASU 2011-11 became effective for the interim reporting period ended March 31, 2013 and resulted in additional disclosures related to the Company's derivatives programs. For further detail, see Note 6 - Derivatives. | |
In July 2012, the FASB issued an update (ASU 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment) which allows an entity testing an indefinite-lived intangible asset for impairment the option of performing a qualitative assessment before calculating the fair value of the asset. This update also addresses circumstances that a company should consider in interim periods, but does not remove the requirement for testing of indefinite-lived intangible assets for impairment annually and between annual tests if there is a change in events and circumstances. The provisions of ASU 2012-02 became effective for the interim reporting period ended March 31, 2013 and did not have a material impact on the Company's Consolidated Financial Statements. | |
In October 2012, the FASB issued an update (ASU 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution) which clarifies the applicable guidance for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution. When a company recognizes an indemnification asset as a result of a government-assisted acquisition of a financial institution and subsequently a change in the cash flows expected to be collected on the indemnification asset occurs (as a result of a change in cash flows expected to be collected on the assets subject to indemnification), the company should subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement (that is, the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets). The provisions of ASU 2012-06 became effective for the interim reporting period ended March 31, 2013 and did not have a material impact on the Company's Consolidated Financial Statements. | |
On February 5, 2013, the FASB issued an update (ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (AOCI)) which requires preparers to report in one place information about reclassifications out of AOCI. The ASU also requires companies to report changes in AOCI balances and expands the disclosure requirements in FASB ASC Topic 220, Comprehensive Income (ASC 220), for presentation of changes in AOCI. This ASU requires companies to disaggregate the total change of each component of other comprehensive income and separately present (1) reclassification adjustments and (2) current-period OCI. ASU 2013-02 also requires companies to present information about significant items reclassified out of AOCI by component either (1) on the face of the statement where net income is presented or (2) as a separate disclosure in the notes to the financial statements. The provisions of ASU 2013-02 became effective for the interim reporting period ended March 31, 2013 and resulted in additional disclosures related to reclassifications from AOCI. For further detail, see Note 14 - Accumulated Other Comprehensive Income (Loss). | |
On July 17, 2013, the FASB issued an update (ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes) which amends FASB ASC Topic 815, Disclosures about Derivatives and Hedging Activities (ASC 815), to allow entities to use the Fed Funds Effective Swap Rate, which is the Overnight Index Swap rate, or OIS, in the U.S., in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. Companies can designate the Fed Funds Effective Swap Rate as a benchmark interest rate on a prospective basis in new or redesignated hedging relationships as of the date the final guidance was issued. Existing interest rate swaps designated as benchmark interest rate hedges must be redesignated in new hedge relationships with new hedge documentation if a company wants to change the hedged risk to the OIS rate. The FASB also eliminated the restriction in ASC 815 on designating different benchmark interest rate hedges for “similar hedges.” The provisions of ASU 2013-10 are effective prospectively for qualifying new hedging relationships entered into on or after July 17, 2013, and did not have a material impact on the Company's Consolidated Financial Statements. | |
On July 18, 2013, the FASB issued an update (ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists) which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss (NOL) carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. The provisions of ASU 2013-11 become effective for the interim reporting period ending March 31, 2014. First Financial does not anticipate this update will have a material impact on its Consolidated Financial Statements. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
GOODWILL AND OTHER INTANGIBLE ASSETS | ' |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Goodwill. Assets and liabilities of acquired entities 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 is not amortized, but is measured 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, 2012 and no impairment was indicated. As of September 30, 2013, no events or changes in circumstances indicated that the fair value of a reporting unit was below its carrying value. First Financial had goodwill of $95.1 million as of September 30, 2013 and December 31, 2012. | |
Other intangible assets. Other intangible assets consist primarily of core deposit intangibles. Core deposit intangibles are recorded at their estimated fair value as of the acquisition date and are then amortized on an accelerated basis over their estimated useful lives. Core deposit intangibles were $6.2 million and $7.4 million as of September 30, 2013 and December 31, 2012, respectively. First Financial's core deposit intangibles have an estimated weighted average remaining life of 7.1 years. Amortization expense for the three months ended September 30, 2013 and 2012 was $0.4 million and $0.7 million, respectively. Amortization expense recognized on intangible assets for the nine months ended September 30, 2013 and 2012, was $1.1 million and $2.1 million, respectively. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
In the normal course of business, First Financial offers a variety of financial instruments with off-balance-sheet risk to its clients to assist them in meeting their requirements for liquidity and credit enhancement. These financial instruments include standby letters of credit and outstanding commitments to extend credit. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements. | |
First Financial’s exposure to credit loss, in the event of nonperformance by the other party to the financial instrument for standby letters of credit, and outstanding commitments to extend credit, is represented by the contractual amounts of those instruments. First Financial uses the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. | |
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 portfolio of standby letters of credit consists primarily 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 (including standby letters of credit) aggregating $13.2 million and $14.8 million at September 30, 2013, and December 31, 2012, respectively. Management conducts regular reviews of these instruments on an individual client basis. | |
Loan commitments. Loan commitments are agreements to extend credit to a client as long as there is no violation of any condition 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 $1.4 billion at September 30, 2013, and $1.2 billion at December 31, 2012. | |
First Financial utilizes the allowance for loan and lease losses methodology to maintain a reserve that it considers sufficient to absorb probable losses inherent in standby letters of credit and outstanding loan commitments and records the reserve within Accrued interest and other liabilities on the Consolidated Balance Sheets. | |
Contingencies/Litigation. First Financial and its subsidiaries are engaged in various matters of litigation, other assertions of improper or fraudulent loan practices or lending violations and other matters 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 is incidental to our regular business activities. While the ultimate liability with respect to these other 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 September 30, 2013. 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. |
INVESTMENTS
INVESTMENTS | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||||||||||||||||||
INVESTMENTS | |||||||||||||||||||||||||||||||||
The following is a summary of held-to-maturity and available-for-sale investment securities as of September 30, 2013: | |||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Market | Amortized | Unrealized | Unrealized | Market | |||||||||||||||||||||||||
Cost | Gain | Loss | Value | Cost | Gain | Loss | Value | ||||||||||||||||||||||||||
U.S. Treasuries | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 97 | $ | 0 | $ | (4 | ) | $ | 93 | ||||||||||||||||
Securities of U.S. government agencies and corporations | 19,462 | 0 | (864 | ) | 18,598 | 10,266 | 0 | (142 | ) | 10,124 | |||||||||||||||||||||||
Mortgage-backed securities | 637,170 | 768 | (6,561 | ) | 631,377 | 652,808 | 6,093 | (20,818 | ) | 638,083 | |||||||||||||||||||||||
Obligations of state and other political subdivisions | 12,461 | 157 | (908 | ) | 11,710 | 34,005 | 31 | (2,294 | ) | 31,742 | |||||||||||||||||||||||
Asset-backed securities | 0 | 0 | 0 | 0 | 67,816 | 0 | (359 | ) | 67,457 | ||||||||||||||||||||||||
Other securities | 0 | 0 | 0 | 0 | 110,936 | 126 | (3,814 | ) | 107,248 | ||||||||||||||||||||||||
Total | $ | 669,093 | $ | 925 | $ | (8,333 | ) | $ | 661,685 | $ | 875,928 | $ | 6,250 | $ | (27,431 | ) | $ | 854,747 | |||||||||||||||
The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2012: | |||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Market | Amortized | Unrealized | Unrealized | Market | |||||||||||||||||||||||||
Cost | Gain | Loss | Value | Cost | Gain | Loss | Value | ||||||||||||||||||||||||||
Securities of U.S. government agencies and corporations | $ | 20,512 | $ | 679 | $ | 0 | $ | 21,191 | $ | 15,562 | $ | 333 | $ | 0 | $ | 15,895 | |||||||||||||||||
Mortgage-backed securities | 740,891 | 8,077 | (1,290 | ) | 747,678 | 854,150 | 14,564 | (1,485 | ) | 867,229 | |||||||||||||||||||||||
Obligations of state and other political subdivisions | 9,352 | 265 | (12 | ) | 9,605 | 35,913 | 169 | (84 | ) | 35,998 | |||||||||||||||||||||||
Asset-backed securities | 0 | 0 | 0 | 0 | 57,000 | 90 | (1 | ) | 57,089 | ||||||||||||||||||||||||
Other securities | 0 | 0 | 0 | 0 | 54,479 | 1,569 | (163 | ) | 55,885 | ||||||||||||||||||||||||
Total | $ | 770,755 | $ | 9,021 | $ | (1,302 | ) | $ | 778,474 | $ | 1,017,104 | $ | 16,725 | $ | (1,733 | ) | $ | 1,032,096 | |||||||||||||||
The following table provides a summary of investment securities by weighted average life as of September 30, 2013. Estimated lives on certain investment securities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Market | Amortized | Market | |||||||||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||||||||||
Due in one year or less | $ | 215 | $ | 218 | $ | 5,009 | $ | 5,152 | |||||||||||||||||||||||||
Due after one year through five years | 409,559 | 407,787 | 250,089 | 251,177 | |||||||||||||||||||||||||||||
Due after five years through ten years | 258,526 | 252,762 | 361,949 | 351,776 | |||||||||||||||||||||||||||||
Due after ten years | 793 | 918 | 258,881 | 246,642 | |||||||||||||||||||||||||||||
Total | $ | 669,093 | $ | 661,685 | $ | 875,928 | $ | 854,747 | |||||||||||||||||||||||||
The following tables present the age of gross unrealized losses and associated fair value by investment category: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||
Securities of U.S. government agencies and corporations | $ | 28,806 | $ | (756 | ) | $ | 0 | $ | 0 | $ | 28,806 | $ | (756 | ) | |||||||||||||||||||
Mortgage-backed securities | 807,599 | (24,767 | ) | 41,679 | (261 | ) | 849,278 | (25,028 | ) | ||||||||||||||||||||||||
Obligations of state and other political subdivisions | 64,895 | (4,357 | ) | 0 | 0 | 64,895 | (4,357 | ) | |||||||||||||||||||||||||
Asset-backed securities | 59,003 | (359 | ) | 0 | 0 | 59,003 | (359 | ) | |||||||||||||||||||||||||
Other securities | 72,326 | (2,531 | ) | 1,244 | (129 | ) | 73,570 | (2,660 | ) | ||||||||||||||||||||||||
Total | $ | 1,032,629 | $ | (32,770 | ) | $ | 42,923 | $ | (390 | ) | $ | 1,075,552 | $ | (33,160 | ) | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||||||
Mortgage-backed securities | $ | 240,641 | $ | (1,635 | ) | $ | 25,513 | $ | (405 | ) | $ | 266,154 | $ | (2,040 | ) | ||||||||||||||||||
Obligations of state and other political subdivisions | 21,341 | (96 | ) | 0 | 0 | 21,341 | (96 | ) | |||||||||||||||||||||||||
Asset-backed securities | 9,999 | (1 | ) | 0 | 0 | 9,999 | (1 | ) | |||||||||||||||||||||||||
Other securities | 8,454 | (163 | ) | 0 | 0 | 8,454 | (163 | ) | |||||||||||||||||||||||||
Total | $ | 280,435 | $ | (1,895 | ) | $ | 25,513 | $ | (405 | ) | $ | 305,948 | $ | (2,300 | ) | ||||||||||||||||||
Gains and losses on debt securities are generally due to higher 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 market 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 September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||||||||||
For further detail on the fair value of investment securities, see Note 13 – Fair Value Disclosures. |
DERIVATIVES
DERIVATIVES | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||||||||||||
DERIVATIVES | |||||||||||||||||||||||||||
First Financial uses 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. | |||||||||||||||||||||||||||
While authorized to use a variety of derivative products, First Financial primarily utilizes interest rate swaps as a means to offer borrowers credit-based products that meet their needs and may from time to time utilize interest rate swaps to manage the interest rate risk profile of the Company. The interest rate swap agreements establish the basis on which interest rate payments are exchanged with counterparties referred to as the notional amount. | |||||||||||||||||||||||||||
The following table summarizes the notional values of derivative financial instruments utilized by First Financial by the nature of the underlying asset or liability: | |||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||
Instruments associated with loans | $ | 916,011 | $ | 935,493 | |||||||||||||||||||||||
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 the market value credit risk associated with counterparties through counterparty credit policies. These policies require the Company to maintain a total derivative notional position of less than 35% of assets, total credit exposure of less than 3% of capital and no single counterparty credit risk exposure greater than $20.0 million. The Company is currently well below all single counterparty and portfolio limits. At September 30, 2013, the Company had a total counterparty notional amount outstanding of approximately $563.2 million, spread among nine counterparties, with an outstanding liability from these contracts of $13.6 million. At December 31, 2012, the Company had a total counterparty notional amount outstanding of approximately $509.1 million, spread among eight counterparties, with an outstanding liability from these contracts of $26.0 million. | |||||||||||||||||||||||||||
First Financial’s exposure to credit loss, in the event of nonperformance by a borrower, is limited to the market value of the derivative instrument associated with that borrower. First Financial monitors its derivative credit exposure to borrowers through the normal credit review processes the Company performs on all borrowers. Additionally, the Company monitors derivative credit risk exposure related to problem loans through the Company's allowance for loan and lease losses 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. | |||||||||||||||||||||||||||
The following table summarizes the derivative financial instruments utilized by First Financial and their balances: | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Estimated fair value | Estimated fair value | ||||||||||||||||||||||||||
(Dollars in thousands) | Balance Sheet Classification | Notional | Gain | Loss | Notional | Gain | Loss | ||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||
Pay fixed interest rate swaps with counterparty | Accrued interest and other liabilities | $ | 10,431 | $ | 0 | $ | (999 | ) | $ | 12,739 | $ | 0 | $ | (1,445 | ) | ||||||||||||
Matched interest rate swaps with borrower | Accrued interest and other assets | 452,790 | 13,798 | (1,050 | ) | 461,377 | 24,135 | 0 | |||||||||||||||||||
Matched interest rate swaps with counterparty | Accrued interest and other liabilities | 452,790 | 1,050 | (13,995 | ) | 461,377 | 0 | (24,978 | ) | ||||||||||||||||||
Total | $ | 916,011 | $ | 14,848 | $ | (16,044 | ) | $ | 935,493 | $ | 24,135 | $ | (26,423 | ) | |||||||||||||
In connection with its use of derivative instruments, from time to time First Financial and its counterparties are 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 liabilities recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in thousands) | Gross amounts of recognized liabilities | Gross amounts offset in the Consolidated Balance Sheets | Net amounts of liabilities presented in the Consolidated Balance Sheets | Gross amounts of recognized liabilities | Gross amounts offset in the Consolidated Balance Sheets | Net amounts of liabilities presented in the Consolidated Balance Sheets | |||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||
Pay fixed interest rate swaps with counterparty | $ | 999 | $ | (393 | ) | $ | 606 | $ | 1,445 | $ | (669 | ) | $ | 776 | |||||||||||||
Matched interest rate swaps with counterparty | 15,045 | (12,103 | ) | 2,942 | 24,978 | (23,057 | ) | 1,921 | |||||||||||||||||||
Total | $ | 16,044 | $ | (12,496 | ) | $ | 3,548 | $ | 26,423 | $ | (23,726 | ) | $ | 2,697 | |||||||||||||
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 September 30, 2013: | |||||||||||||||||||||||||||
Weighted-average rate | |||||||||||||||||||||||||||
(Dollars in thousands) | Notional | Average | Fair | Receive | Pay | ||||||||||||||||||||||
amount | maturity | value | |||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||
Asset conversion swaps | |||||||||||||||||||||||||||
Pay fixed interest rate swaps with counterparty | $ | 10,431 | 3 | $ | (999 | ) | 2.21 | % | 6.85 | % | |||||||||||||||||
Receive fixed, matched interest rate swaps with borrower | 452,790 | 4.1 | 12,748 | 4.88 | % | 2.94 | % | ||||||||||||||||||||
Pay fixed, matched interest rate swaps with counterparty | 452,790 | 4.1 | (12,945 | ) | 2.94 | % | 4.88 | % | |||||||||||||||||||
Total asset conversion swaps | $ | 916,011 | 4.1 | $ | (1,196 | ) | 3.89 | % | 3.95 | % | |||||||||||||||||
The accounting for changes in the fair value of derivatives depends on the intended use of the derivative instrument and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. | |||||||||||||||||||||||||||
Fair Value Hedges. First Financial utilizes interest rate swaps designated as fair value hedges as a means to offer commercial borrowers products that meet their needs, but are also designed to achieve First Financial’s desired interest rate risk profile. First Financial accomplishes this by entering into swap agreements with commercial borrowers and simultaneously entering into offsetting swap agreements, with substantially matching terms, with institutional counterparties. These interest rate swap agreements generally involve the receipt by First Financial of floating rate amounts from counterparties in exchange for payments to these counterparties by First Financial of fixed rate amounts received from commercial borrowers over the life of the agreements. These interest rate swap agreements do not involve an exchange of the underlying principal or notional amount. This results in First Financial’s loan customers receiving fixed rate funding, while providing First Financial with a floating rate asset. First Financial's matched interest rate swaps economically hedge offsetting "receive fixed" and "pay fixed" exposures, but do not qualify for hedge accounting. | |||||||||||||||||||||||||||
The net interest receivable or payable on matched interest rate swaps is accrued and recognized as an adjustment to the interest income of the hedged item. The fair value of matched interest rate swaps is included within Accrued interest and other assets and Accrued interest and other liabilities on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||
For the unmatched, pay fixed interest rate swaps, which qualify for hedge accounting, the corresponding fair-value adjustment is included on the Consolidated Balance Sheets in the carrying value of the hedged item. The net interest receivable or payable on unmatched interest rate swaps is accrued and recognized as an adjustment to the interest income of the hedged item. Gains and losses from derivatives not considered effective in hedging the change in fair value of the hedged item, if any, are recognized in income immediately. | |||||||||||||||||||||||||||
The following table details the location and amounts recognized for fair value hedges: | |||||||||||||||||||||||||||
Decrease to Interest income | |||||||||||||||||||||||||||
(Dollars in thousands) | Three months ended | Nine months ended | |||||||||||||||||||||||||
Derivatives in fair value hedging relationships | Location of change in fair value | September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||
Loans | Interest income - loans | $ | (123 | ) | $ | (167 | ) | $ | (393 | ) | $ | (555 | ) | ||||||||||||||
Total | $ | (123 | ) | $ | (167 | ) | $ | (393 | ) | $ | (555 | ) | |||||||||||||||
Cash Flow Hedges. First Financial utilizes interest rate swaps designated as cash flow hedges to manage the variability of cash flows, primarily net interest income, attributable to changes in interest rates. The net interest receivable or payable on an interest rate swap designated as a cash flow hedge is accrued and recognized as an adjustment to interest income or interest expense while the fair value is included within Accrued interest and other assets or Accrued interest and other liabilities on the Consolidated Balance Sheets. Changes in the fair value of interest rate swaps designated as cash flow hedges are included in accumulated other comprehensive income (loss). Gains and losses from derivatives not considered effective in hedging the cash flows related to the hedged items, if any, are recognized in income immediately. | |||||||||||||||||||||||||||
First Financial utilizes interest rate swaps designated as cash flow hedges to hedge against interest rate volatility on indexed floating rate deposits, totaling $100.0 million as of September 30, 2013 and $35.0 million as of December 31, 2012. These interest rate swaps qualify for hedge accounting and involve the receipt by First Financial of variable-rate interest amounts in exchange for fixed-rate interest payments by First Financial and have a remaining weighted average term of approximately 6 years. Accrued interest and other liabilities included $0.3 million at September 30, 2013 and $0.2 million at December 31, 2012, respectively, reflecting the fair value of these cash flow hedges. |
BORROWINGS
BORROWINGS | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
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 as well as overnight advances from the Federal Loan Home Bank (FHLB). All repurchase agreements are subject to terms and conditions of repurchase/security agreements between First Financial Bank and the client. To secure the Bank's liability to the client, First Financial Bank is authorized to sell or repurchase U. S. Treasury, government agency and mortgage-backed securities. | |||||||||||||||
First Financial had $518.2 million in short-term borrowings with the FHLB at September 30, 2013 and $502.0 million as of December 31, 2012. These short-term borrowings are used to manage the Company's normal liquidity needs and support the Company's asset and liability management strategies. | |||||||||||||||
Long-term debt primarily consists of FHLB long-term advances and repurchase agreements utilizing investment securities pledged as collateral. These instruments are primarily utilized to reduce overnight liquidity risk and to mitigate interest rate sensitivity on the Consolidated Balance Sheets. First Financial has $52.5 million in repurchase agreements which have remaining maturities of less than 2 years and a weighted average rate of 3.49%. Securities pledged as collateral in conjunction with the repurchase agreements are included within Investment securities available-for-sale on the Consolidated Balance Sheets. | |||||||||||||||
The following is a summary of long-term debt: | |||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||
(Dollars in thousands) | Amount | Average Rate | Amount | Average Rate | |||||||||||
Federal Home Loan Bank | $ | 7,813 | 3.74 | % | $ | 9,427 | 3.74 | % | |||||||
National Market Repurchase Agreement | 52,500 | 3.49 | % | 65,000 | 3.5 | % | |||||||||
Capital loan with municipality | 775 | 0 | % | 775 | 0 | % | |||||||||
Total long-term debt | $ | 61,088 | 3.48 | % | $ | 75,202 | 3.49 | % | |||||||
Under Federal Reserve Board guidelines, a company can issue qualifying debentures up to 25% of qualifying Tier I capital. First Financial has the capacity to issue approximately $159.5 million in additional qualifying debentures under these guidelines. |
LOANS_excluding_covered_loans
LOANS (excluding covered loans) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Loans, Excluding Covered Loans [Abstract] | ' | ||||||||||||||||||||||||||||
LOANS (excluding covered loans) | ' | ||||||||||||||||||||||||||||
LOANS - EXCLUDING COVERED LOANS | |||||||||||||||||||||||||||||
First Financial offers clients a variety of commercial and consumer loan and lease products with various interest rates and payment terms. Lending activities are primarily concentrated in Ohio, Indiana and Kentucky, where the Bank currently operates banking centers. Additionally, First Financial provides equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector throughout the United States. | |||||||||||||||||||||||||||||
Credit Quality. To facilitate the monitoring of credit quality for commercial loans, and for purposes of determining an appropriate allowance for loan and lease losses, 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, on the basis of currently existing facts, conditions and values, highly questionable and improbable. 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 described above, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. | |||||||||||||||||||||||||||||
First Financial considers repayment performance as the best indicator of credit quality for consumer loans. Consumer loans that have principal and interest payments that are past due by ninety days or more are generally classified as nonperforming. Additionally, consumer loans that have been modified in a troubled debt restructuring (TDR) are also classified as nonperforming. | |||||||||||||||||||||||||||||
Commercial and consumer credit exposure by risk attribute was as follows: | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | |||||||||||||||||||||||||
Pass | $ | 914,021 | $ | 86,942 | $ | 1,391,039 | $ | 2,392,002 | |||||||||||||||||||||
Special Mention | 29,061 | 225 | 29,786 | 59,072 | |||||||||||||||||||||||||
Substandard | 16,934 | 2,922 | 73,144 | 93,000 | |||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Total | $ | 960,016 | $ | 90,089 | $ | 1,493,969 | $ | 2,544,074 | |||||||||||||||||||||
(Dollars in thousands) | Real Estate | Installment | Home Equity | Other | Total | ||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Performing | $ | 343,484 | $ | 48,852 | $ | 370,968 | $ | 110,814 | $ | 874,118 | |||||||||||||||||||
Nonperforming | 9,346 | 421 | 2,871 | 86 | 12,724 | ||||||||||||||||||||||||
Total | $ | 352,830 | $ | 49,273 | $ | 373,839 | $ | 110,900 | $ | 886,842 | |||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | |||||||||||||||||||||||||
Pass | $ | 803,351 | $ | 64,866 | $ | 1,307,370 | $ | 2,175,587 | |||||||||||||||||||||
Special Mention | 29,663 | 65 | 38,516 | 68,244 | |||||||||||||||||||||||||
Substandard | 28,019 | 8,586 | 71,122 | 107,727 | |||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Total | $ | 861,033 | $ | 73,517 | $ | 1,417,008 | $ | 2,351,558 | |||||||||||||||||||||
(Dollars in thousands) | Real Estate | Installment | Home Equity | Other | Total | ||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Performing | $ | 310,341 | $ | 56,358 | $ | 364,248 | $ | 84,490 | $ | 815,437 | |||||||||||||||||||
Nonperforming | 7,869 | 452 | 3,252 | 496 | 12,069 | ||||||||||||||||||||||||
Total | $ | 318,210 | $ | 56,810 | $ | 367,500 | $ | 84,986 | $ | 827,506 | |||||||||||||||||||
Delinquency. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the date of the scheduled payment. | |||||||||||||||||||||||||||||
Loan delinquency, including loans classified as nonaccrual, was as follows: | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | 30 – 59 | 60 – 89 | > 90 days | Total | Current | Total | > 90 days | ||||||||||||||||||||||
days | days | past due | past | past due | |||||||||||||||||||||||||
past due | past due | due | and | ||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Commercial | $ | 1,018 | $ | 678 | $ | 9,294 | $ | 10,990 | $ | 949,026 | $ | 960,016 | $ | 0 | |||||||||||||||
Real estate - construction | 23 | 0 | 1,098 | 1,121 | 88,968 | 90,089 | 0 | ||||||||||||||||||||||
Real estate - commercial | 8,280 | 2,747 | 23,569 | 34,596 | 1,459,373 | 1,493,969 | 0 | ||||||||||||||||||||||
Real estate - residential | 1,705 | 1,230 | 6,484 | 9,419 | 343,411 | 352,830 | 0 | ||||||||||||||||||||||
Installment | 389 | 38 | 371 | 798 | 48,475 | 49,273 | 0 | ||||||||||||||||||||||
Home equity | 735 | 442 | 1,525 | 2,702 | 371,137 | 373,839 | 0 | ||||||||||||||||||||||
Other | 424 | 111 | 351 | 886 | 110,014 | 110,900 | 265 | ||||||||||||||||||||||
Total | $ | 12,574 | $ | 5,246 | $ | 42,692 | $ | 60,512 | $ | 3,370,404 | $ | 3,430,916 | $ | 265 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 | 60 - 89 | > 90 days | Total | Current | Total | > 90 days | ||||||||||||||||||||||
days | days | past due | past | past due and accruing | |||||||||||||||||||||||||
past due | past due | due | |||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Commercial | $ | 1,770 | $ | 832 | $ | 4,197 | $ | 6,799 | $ | 854,234 | $ | 861,033 | $ | 0 | |||||||||||||||
Real estate - construction | 0 | 0 | 892 | 892 | 72,625 | 73,517 | 0 | ||||||||||||||||||||||
Real estate - commercial | 2,549 | 1,931 | 27,966 | 32,446 | 1,384,562 | 1,417,008 | 0 | ||||||||||||||||||||||
Real estate - residential | 6,071 | 1,463 | 6,113 | 13,647 | 304,563 | 318,210 | 0 | ||||||||||||||||||||||
Installment | 280 | 148 | 344 | 772 | 56,038 | 56,810 | 0 | ||||||||||||||||||||||
Home equity | 1,311 | 869 | 1,440 | 3,620 | 363,880 | 367,500 | 0 | ||||||||||||||||||||||
Other | 386 | 168 | 708 | 1,262 | 83,724 | 84,986 | 212 | ||||||||||||||||||||||
Total | $ | 12,367 | $ | 5,411 | $ | 41,660 | $ | 59,438 | $ | 3,119,626 | $ | 3,179,064 | $ | 212 | |||||||||||||||
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 ninety 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 such as insufficient collateral value. The accrual of interest income is discontinued and previously accrued, but unpaid interest is reversed when a loan is classified as nonaccrual. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan may be reclassified back to accrual status if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. | |||||||||||||||||||||||||||||
Troubled Debt Restructurings. A loan modification is considered a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) 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 terms of the loan modification. | |||||||||||||||||||||||||||||
First Financial had 215 TDRs totaling $29.3 million at September 30, 2013, including $16.3 million on accrual status and $13.0 million classified as nonaccrual. First Financial had $0.6 million of commitments outstanding to lend additional funds to borrowers whose loan terms had been modified through TDRs. At September 30, 2013, the allowance for loan and lease losses included reserves of $4.0 million related to TDRs. For the three and nine months ended September 30, 2013, First Financial charged off $1.2 million and $2.4 million, respectively, for the portion of TDRs determined to be uncollectible. Additionally, at September 30, 2013, approximately $8.4 million of the accruing TDRs have been performing in accordance with the restructured terms for more than one year. | |||||||||||||||||||||||||||||
First Financial had 145 TDRs totaling $25.0 million at December 31, 2012, including $10.9 million of loans on accrual status and $14.1 million classified as nonaccrual. First Financial had $3.5 million of commitments outstanding to lend additional funds to borrowers whose loan terms had been modified through TDRs. At December 31, 2012, the allowance for loan and lease losses included reserves of $3.0 million related to TDRs. For the year ended December 31, 2012, First Financial charged off $7.2 million for the portion of TDRs determined to be uncollectible. At December 31, 2012, approximately $2.7 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 nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of loans | Pre-modification loan balance | Period end balance | Number of loans | Pre-modification loan balance | Period end balance | |||||||||||||||||||||||
Commercial | 4 | $ | 494 | $ | 490 | 6 | $ | 3,787 | $ | 4,027 | |||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Real estate - commercial | 10 | 2,502 | 2,493 | 8 | 5,105 | 5,077 | |||||||||||||||||||||||
Real estate - residential | 3 | 387 | 367 | 0 | 0 | 0 | |||||||||||||||||||||||
Installment | 3 | 34 | 33 | 0 | 0 | 0 | |||||||||||||||||||||||
Home equity | 5 | 294 | 216 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | 25 | $ | 3,711 | $ | 3,599 | 14 | $ | 8,892 | $ | 9,104 | |||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of loans | Pre-modification loan balance | Period end balance | Number of loans | Pre-modification loan balance | Period end balance | |||||||||||||||||||||||
Commercial | 14 | $ | 8,233 | $ | 6,105 | 16 | $ | 8,358 | $ | 8,589 | |||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Real estate - commercial | 17 | 4,752 | 4,719 | 22 | 9,854 | 9,795 | |||||||||||||||||||||||
Real estate - residential | 33 | 2,356 | 2,178 | 2 | 164 | 166 | |||||||||||||||||||||||
Installment | 14 | 188 | 115 | 0 | 0 | 0 | |||||||||||||||||||||||
Home equity | 35 | 1,176 | 887 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | 113 | $ | 16,705 | $ | 14,004 | 40 | $ | 18,376 | $ | 18,550 | |||||||||||||||||||
The following table provides information on how TDRs were modified during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, (2) | September 30, (2) | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Extended maturities | $ | 2,179 | $ | 6,144 | $ | 8,848 | $ | 13,404 | |||||||||||||||||||||
Adjusted interest rates | 0 | 0 | 520 | 166 | |||||||||||||||||||||||||
Combination of rate and maturity changes | 613 | 0 | 850 | 563 | |||||||||||||||||||||||||
Forbearance | 0 | 2,565 | 0 | 3,801 | |||||||||||||||||||||||||
Other (1) | 807 | 395 | 3,786 | 616 | |||||||||||||||||||||||||
Total | $ | 3,599 | $ | 9,104 | $ | 14,004 | $ | 18,550 | |||||||||||||||||||||
(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions | |||||||||||||||||||||||||||||
(2) Balances are as of period end | |||||||||||||||||||||||||||||
First Financial considers repayment performance as an indication of the effectiveness of the Company's loan modifications. A borrower that is ninety days or more past due on any principal or interest payments for a TDR, or who prematurely terminates a restructured loan agreement without satisfying the contractual principal balance (for example, in a deed-in-lieu arrangement), is considered to be in payment default of the terms of the TDR agreement. | |||||||||||||||||||||||||||||
The following table provides information on TDRs for which there was a payment default during the period that occurred within twelve months of the loan modification: | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Period End Balance | Number of Loans | Period End Balance | |||||||||||||||||||||||||
Commercial | 4 | $ | 4,882 | 2 | $ | 1,133 | |||||||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Real estate - commercial | 2 | 63 | 0 | 0 | |||||||||||||||||||||||||
Real estate - residential | 3 | 185 | 0 | 0 | |||||||||||||||||||||||||
Installment | 4 | 26 | 0 | 0 | |||||||||||||||||||||||||
Home equity | 5 | 64 | 0 | 0 | |||||||||||||||||||||||||
Total | 18 | $ | 5,220 | 2 | $ | 1,133 | |||||||||||||||||||||||
Impaired Loans. Loans classified as nonaccrual and loans modified as TDRs are considered impaired. The following table provides information on nonaccrual loans, TDRs and total impaired loans. | |||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Impaired loans | |||||||||||||||||||||||||||||
Nonaccrual loans (1) | |||||||||||||||||||||||||||||
Commercial | $ | 8,554 | $ | 15,893 | |||||||||||||||||||||||||
Real estate-construction | 1,099 | 2,102 | |||||||||||||||||||||||||||
Real estate-commercial | 35,549 | 34,977 | |||||||||||||||||||||||||||
Real estate-residential | 9,346 | 7,869 | |||||||||||||||||||||||||||
Installment | 421 | 452 | |||||||||||||||||||||||||||
Home equity | 2,871 | 3,252 | |||||||||||||||||||||||||||
Other | 86 | 496 | |||||||||||||||||||||||||||
Nonaccrual loans (1) | 57,926 | 65,041 | |||||||||||||||||||||||||||
Accruing troubled debt restructurings | 16,278 | 10,856 | |||||||||||||||||||||||||||
Total impaired loans | $ | 74,204 | $ | 75,897 | |||||||||||||||||||||||||
(1) Nonaccrual loans include nonaccrual TDRs of $13.0 million and $14.1 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Interest income effect on impaired loans | |||||||||||||||||||||||||||||
Gross amount of interest that would have been recorded under original terms | $ | 1,142 | $ | 1,145 | $ | 3,399 | $ | 3,734 | |||||||||||||||||||||
Interest included in income | |||||||||||||||||||||||||||||
Nonaccrual loans | 130 | 158 | 472 | 586 | |||||||||||||||||||||||||
Troubled debt restructurings | 115 | 95 | 316 | 247 | |||||||||||||||||||||||||
Total interest included in income | 245 | 253 | 788 | 833 | |||||||||||||||||||||||||
Net impact on interest income | $ | 897 | $ | 892 | $ | 2,611 | $ | 2,901 | |||||||||||||||||||||
Commitments outstanding to borrowers with nonaccrual loans | $ | 0 | $ | 2,977 | |||||||||||||||||||||||||
First Financial individually reviews all impaired commercial loan relationships greater than $250,000, as well as consumer loan TDRs greater than $100,000, to determine if a specific allowance based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral is necessary. Specific allowances are based on expected cash flows, discounted 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: | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current Balance | Contractual | Related | Average | YTD Interest | Quarterly Interest | |||||||||||||||||||||||
Principal | Allowance | Current | Income | Income | |||||||||||||||||||||||||
Balance | Balance | Recognized | Recognized | ||||||||||||||||||||||||||
Loans with no related allowance recorded | |||||||||||||||||||||||||||||
Commercial | $ | 6,420 | $ | 8,480 | $ | 0 | $ | 12,087 | $ | 141 | $ | 17 | |||||||||||||||||
Real estate - construction | 1,099 | 1,671 | 0 | 693 | 0 | 0 | |||||||||||||||||||||||
Real estate - commercial | 16,583 | 20,727 | 0 | 17,615 | 317 | 108 | |||||||||||||||||||||||
Real estate - residential | 11,042 | 12,866 | 0 | 10,208 | 111 | 39 | |||||||||||||||||||||||
Installment | 489 | 531 | 0 | 418 | 4 | 1 | |||||||||||||||||||||||
Home equity | 3,100 | 3,807 | 0 | 3,129 | 32 | 11 | |||||||||||||||||||||||
Other | 86 | 86 | 0 | 185 | 0 | 0 | |||||||||||||||||||||||
Loans with an allowance recorded | |||||||||||||||||||||||||||||
Commercial | 6,134 | 7,500 | 1,645 | 4,556 | 58 | 8 | |||||||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 907 | 7 | 0 | |||||||||||||||||||||||
Real estate - commercial | 27,123 | 31,628 | 6,371 | 23,463 | 89 | 50 | |||||||||||||||||||||||
Real estate - residential | 2,027 | 2,082 | 348 | 1,992 | 28 | 10 | |||||||||||||||||||||||
Installment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Home equity | 101 | 101 | 2 | 101 | 1 | 1 | |||||||||||||||||||||||
Other | 0 | 0 | 0 | 209 | 0 | 0 | |||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial | 12,554 | 15,980 | 1,645 | 16,643 | 199 | 25 | |||||||||||||||||||||||
Real estate - construction | 1,099 | 1,671 | 0 | 1,600 | 7 | 0 | |||||||||||||||||||||||
Real estate - commercial | 43,706 | 52,355 | 6,371 | 41,078 | 406 | 158 | |||||||||||||||||||||||
Real estate - residential | 13,069 | 14,948 | 348 | 12,200 | 139 | 49 | |||||||||||||||||||||||
Installment | 489 | 531 | 0 | 418 | 4 | 1 | |||||||||||||||||||||||
Home equity | 3,201 | 3,908 | 2 | 3,230 | 33 | 12 | |||||||||||||||||||||||
Other | 86 | 86 | 0 | 394 | 0 | 0 | |||||||||||||||||||||||
Total | $ | 74,204 | $ | 89,479 | $ | 8,366 | $ | 75,563 | $ | 788 | $ | 245 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | Contractual | Related | Average | Interest | ||||||||||||||||||||||||
Balance | Principal | Allowance | Current | Income | |||||||||||||||||||||||||
Balance | Balance | Recognized | |||||||||||||||||||||||||||
Loans with no related allowance recorded | |||||||||||||||||||||||||||||
Commercial | $ | 14,961 | $ | 17,269 | $ | 0 | $ | 9,337 | $ | 215 | |||||||||||||||||||
Real estate - construction | 462 | 672 | 0 | 3,857 | 15 | ||||||||||||||||||||||||
Real estate - commercial | 15,782 | 21,578 | 0 | 15,554 | 277 | ||||||||||||||||||||||||
Real estate - residential | 9,222 | 10,817 | 0 | 8,463 | 81 | ||||||||||||||||||||||||
Installment | 452 | 556 | 0 | 452 | 2 | ||||||||||||||||||||||||
Home equity | 3,251 | 4,132 | 0 | 2,423 | 19 | ||||||||||||||||||||||||
Other | 326 | 326 | 0 | 65 | 0 | ||||||||||||||||||||||||
Loans with an allowance recorded | |||||||||||||||||||||||||||||
Commercial | 3,560 | 4,252 | 1,151 | 5,350 | 161 | ||||||||||||||||||||||||
Real estate - construction | 1,640 | 2,168 | 838 | 5,033 | 81 | ||||||||||||||||||||||||
Real estate - commercial | 24,014 | 25,684 | 7,155 | 25,499 | 235 | ||||||||||||||||||||||||
Real estate - residential | 1,956 | 2,003 | 290 | 2,278 | 38 | ||||||||||||||||||||||||
Installment | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Home equity | 101 | 101 | 2 | 81 | 1 | ||||||||||||||||||||||||
Other | 170 | 170 | 92 | 34 | 0 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial | 18,521 | 21,521 | 1,151 | 14,687 | 376 | ||||||||||||||||||||||||
Real estate - construction | 2,102 | 2,840 | 838 | 8,890 | 96 | ||||||||||||||||||||||||
Real estate - commercial | 39,796 | 47,262 | 7,155 | 41,053 | 512 | ||||||||||||||||||||||||
Real estate - residential | 11,178 | 12,820 | 290 | 10,741 | 119 | ||||||||||||||||||||||||
Installment | 452 | 556 | 0 | 452 | 2 | ||||||||||||||||||||||||
Home equity | 3,352 | 4,233 | 2 | 2,504 | 20 | ||||||||||||||||||||||||
Other | 496 | 496 | 92 | 99 | 0 | ||||||||||||||||||||||||
Total | $ | 75,897 | $ | 89,728 | $ | 9,528 | $ | 78,426 | $ | 1,125 | |||||||||||||||||||
OREO. Other real estate owned (OREO) is comprised of properties acquired by the Company through the loan foreclosure or repossession process, or other resolution activity that results in partial or total satisfaction of problem loans. The acquired properties are recorded at the lower of cost or fair value less estimated costs of disposal (net realizable value) upon acquisition. Losses arising at the time of acquisition of such properties are charged against the allowance for loan and lease losses. Subsequent write-downs in the carrying value of OREO properties are expensed as incurred. Improvements to the properties may be capitalized if the improvements contribute to the overall value of the property, but may not be capitalized in excess of the net realizable value of the property. | |||||||||||||||||||||||||||||
Changes in OREO were as follows: | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 11,798 | $ | 15,688 | $ | 12,526 | $ | 11,317 | |||||||||||||||||||||
Additions | |||||||||||||||||||||||||||||
Commercial | 608 | 539 | 2,924 | 5,888 | |||||||||||||||||||||||||
Residential | 265 | 406 | 645 | 2,320 | |||||||||||||||||||||||||
Total additions | 873 | 945 | 3,569 | 8,208 | |||||||||||||||||||||||||
Disposals | |||||||||||||||||||||||||||||
Commercial | 500 | 1,209 | 2,382 | 2,221 | |||||||||||||||||||||||||
Residential | 154 | 413 | 805 | 1,025 | |||||||||||||||||||||||||
Total disposals | 654 | 1,622 | 3,187 | 3,246 | |||||||||||||||||||||||||
Write-downs | |||||||||||||||||||||||||||||
Commercial | 71 | 1,041 | 632 | 2,181 | |||||||||||||||||||||||||
Residential | 142 | 58 | 472 | 186 | |||||||||||||||||||||||||
Total write-downs | 213 | 1,099 | 1,104 | 2,367 | |||||||||||||||||||||||||
Balance at end of period | $ | 11,804 | $ | 13,912 | $ | 11,804 | $ | 13,912 | |||||||||||||||||||||
LOANS_covered
LOANS (covered) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Covered Loans [Abstract] | ' | |||||||||||||||||||||||||||
LOANS (covered) | ' | |||||||||||||||||||||||||||
COVERED LOANS | ||||||||||||||||||||||||||||
Loans acquired in Federal Deposit Insurance Corporation (FDIC)-assisted transactions initially covered under loss sharing agreements whereby the FDIC will reimburse First Financial for the majority of any losses incurred are referred to as covered loans. Pursuant to the terms of each loss sharing agreement, covered loans are subject to a stated loss threshold whereby the FDIC will reimburse First Financial for 80% of losses up to the stated loss threshold and 95% of losses in excess of the threshold. First Financial will reimburse the FDIC for its pro rata share of recoveries with respect to losses for which the FDIC paid First Financial a reimbursement under the loss sharing agreement. The FDIC’s obligation to reimburse First Financial for losses with respect to covered loans began with the first dollar of loss incurred. | ||||||||||||||||||||||||||||
First Financial accounts for the majority of covered loans under FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, except loans with revolving privileges, which are outside the scope of this guidance, and loans for which cash flows could not be estimated, which are accounted for under the cost recovery method. Loans accounted for under FASB ASC Topic 310-30 are referred to as purchased impaired loans. | ||||||||||||||||||||||||||||
Purchased impaired loans are not classified as nonperforming assets as the loans are considered to be performing under FASB ASC Topic 310-30. Therefore, interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows (accretable difference) is recognized on all covered purchased impaired loans. | ||||||||||||||||||||||||||||
The following table reflects the carrying value of all covered purchased impaired and nonimpaired covered loans: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Total | Loans | Loans | Total | ||||||||||||||||||||||
accounted | excluded | purchased | accounted | excluded | purchased | |||||||||||||||||||||||
for under | from FASB | loans | for under | from FASB | loans | |||||||||||||||||||||||
FASB ASC | ASC Topic | FASB ASC | ASC Topic | |||||||||||||||||||||||||
Topic 310-30 | 310-30 | Topic 310-30 | 310-30 | |||||||||||||||||||||||||
Commercial | $ | 51,077 | $ | 1,199 | $ | 52,276 | $ | 94,775 | $ | 7,351 | $ | 102,126 | ||||||||||||||||
Real estate - construction | 8,692 | 0 | 8,692 | 10,631 | 0 | 10,631 | ||||||||||||||||||||||
Real estate - commercial | 306,345 | 6,453 | 312,798 | 458,066 | 7,489 | 465,555 | ||||||||||||||||||||||
Real estate - residential | 84,418 | 0 | 84,418 | 100,694 | 0 | 100,694 | ||||||||||||||||||||||
Installment | 5,552 | 583 | 6,135 | 7,911 | 763 | 8,674 | ||||||||||||||||||||||
Home equity | 1,009 | 50,683 | 51,692 | 2,080 | 55,378 | 57,458 | ||||||||||||||||||||||
Other covered loans | 0 | 2,513 | 2,513 | 0 | 2,978 | 2,978 | ||||||||||||||||||||||
Total covered loans | $ | 457,093 | $ | 61,431 | $ | 518,524 | $ | 674,157 | $ | 73,959 | $ | 748,116 | ||||||||||||||||
The outstanding balance of all purchased impaired and nonimpaired loans accounted for under FASB ASC Topic 310-30, including all contractual principal, interest, fees and penalties, was $569.9 million and $852.9 million as of September 30, 2013 and December 31, 2012, respectively. These balances exclude contractual interest not yet accrued. | ||||||||||||||||||||||||||||
Changes in the carrying amount of accretable difference for covered purchased impaired loans were as follows: | ||||||||||||||||||||||||||||
Three Months Ended | Nine months ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 173,920 | $ | 283,296 | $ | 224,694 | $ | 344,410 | ||||||||||||||||||||
Reclassification (to)/from nonaccretable difference | (4,979 | ) | 2,338 | (5,687 | ) | 25,780 | ||||||||||||||||||||||
Accretion | (13,772 | ) | (21,730 | ) | (46,971 | ) | (71,674 | ) | ||||||||||||||||||||
Other net activity (1) | (8,347 | ) | (11,749 | ) | (25,214 | ) | (46,361 | ) | ||||||||||||||||||||
Balance at end of period | $ | 146,822 | $ | 252,155 | $ | 146,822 | $ | 252,155 | ||||||||||||||||||||
(1) Includes the impact of loan repayments and charge-offs | ||||||||||||||||||||||||||||
First Financial regularly reviews its forecast of expected cash flows for covered purchased impaired loans. During the second quarter 2013 the Company implemented certain enhancements to its valuation methodology and the estimation of impairment to place greater emphasis on changes in total expected cash flows and less emphasis on changes in the net present value of expected cash flows. These enhancements contributed to a net reclassification from accretable difference to nonaccretable difference of $5.0 million and resulted in lower yields on certain loan pools during the third quarter 2013. Conversely, First Financial recognized a $2.3 million reclassification from nonaccretable difference to accretable difference and higher yields on certain loan pools during the third quarter of 2012 related to improvement in the cash flow expectations for certain loan pools. For the nine months ended September 30, 2013, the Company recognized a net reclassification of $5.7 million from accretable difference to nonaccretable difference as a result of the enhancements to the valuation methodology. For the nine months ended September 30, 2012, the Company recognized a net reclassification of $25.8 million from nonaccretable difference to accretable difference. For further detail on impairment and provision expense related to covered purchased impaired loans, see "Covered Loans" in Note 10 - Allowance for Loan and Lease Losses. | ||||||||||||||||||||||||||||
Credit Quality. For further discussion of First Financial's monitoring of credit quality for commercial and consumer loans, including discussion of the risk attributes noted below, please see Note 8 - Loans, excluding covered loans. | ||||||||||||||||||||||||||||
Covered commercial and consumer credit exposure by risk attribute was as follows: | ||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | ||||||||||||||||||||||||
Pass | $ | 27,580 | $ | 1,714 | $ | 175,085 | $ | 204,379 | ||||||||||||||||||||
Special Mention | 7,933 | 0 | 41,478 | 49,411 | ||||||||||||||||||||||||
Substandard | 15,973 | 6,978 | 96,235 | 119,186 | ||||||||||||||||||||||||
Doubtful | 790 | 0 | 0 | 790 | ||||||||||||||||||||||||
Total | $ | 52,276 | $ | 8,692 | $ | 312,798 | $ | 373,766 | ||||||||||||||||||||
(Dollars in thousands) | Real estate | Installment | Home equity | Other | Total | |||||||||||||||||||||||
residential | ||||||||||||||||||||||||||||
Performing | $ | 84,418 | $ | 6,135 | $ | 49,680 | $ | 2,507 | $ | 142,740 | ||||||||||||||||||
Nonperforming | 0 | 0 | 2,012 | 6 | 2,018 | |||||||||||||||||||||||
Total | $ | 84,418 | $ | 6,135 | $ | 51,692 | $ | 2,513 | $ | 144,758 | ||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | ||||||||||||||||||||||||
Pass | $ | 48,213 | $ | 2,304 | $ | 213,143 | $ | 263,660 | ||||||||||||||||||||
Special Mention | 16,293 | 7 | 70,894 | 87,194 | ||||||||||||||||||||||||
Substandard | 35,596 | 8,320 | 181,345 | 225,261 | ||||||||||||||||||||||||
Doubtful | 2,024 | 0 | 173 | 2,197 | ||||||||||||||||||||||||
Total | $ | 102,126 | $ | 10,631 | $ | 465,555 | $ | 578,312 | ||||||||||||||||||||
(Dollars in thousands) | Real estate | Installment | Home | Other | Total | |||||||||||||||||||||||
residential | equity | |||||||||||||||||||||||||||
Performing | $ | 100,694 | $ | 8,674 | $ | 53,231 | $ | 2,967 | $ | 165,566 | ||||||||||||||||||
Nonperforming | 0 | 0 | 4,227 | 11 | 4,238 | |||||||||||||||||||||||
Total | $ | 100,694 | $ | 8,674 | $ | 57,458 | $ | 2,978 | $ | 169,804 | ||||||||||||||||||
Delinquency. Covered loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. | ||||||||||||||||||||||||||||
Covered loan delinquency, excluding loans accounted for under FASB ASC Topic 310-30, was as follows: | ||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 | 60 - 89 | > 90 days | Total | Current | Total | > 90 days | |||||||||||||||||||||
days | days | past due | past | past due and | ||||||||||||||||||||||||
past due | past due | due | accruing | |||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Commercial | $ | 59 | $ | 136 | $ | 379 | $ | 574 | $ | 625 | $ | 1,199 | $ | 0 | ||||||||||||||
Real estate - commercial | 59 | 5 | 1,809 | 1,873 | 4,580 | 6,453 | 0 | |||||||||||||||||||||
Installment | 6 | 0 | 0 | 6 | 577 | 583 | 0 | |||||||||||||||||||||
Home equity | 722 | 459 | 1,052 | 2,233 | 48,450 | 50,683 | 0 | |||||||||||||||||||||
All other | 3 | 0 | 49 | 52 | 2,461 | 2,513 | 43 | |||||||||||||||||||||
Total | $ | 849 | $ | 600 | $ | 3,289 | $ | 4,738 | $ | 56,693 | $ | 61,431 | $ | 43 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 | 60 - 89 | > 90 days | Total | Current | Total | > 90 days | |||||||||||||||||||||
days | days | past due | past | past due and | ||||||||||||||||||||||||
past due | past due | due | accruing | |||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Commercial | $ | 351 | $ | 148 | $ | 3,781 | $ | 4,280 | $ | 3,071 | $ | 7,351 | $ | 0 | ||||||||||||||
Real estate - commercial | 138 | 1,149 | 2,201 | 3,488 | 4,001 | 7,489 | 0 | |||||||||||||||||||||
Installment | 0 | 0 | 0 | 0 | 763 | 763 | 0 | |||||||||||||||||||||
Home equity | 286 | 296 | 3,697 | 4,279 | 51,099 | 55,378 | 0 | |||||||||||||||||||||
All other | 19 | 26 | 42 | 87 | 2,891 | 2,978 | 31 | |||||||||||||||||||||
Total | $ | 794 | $ | 1,619 | $ | 9,721 | $ | 12,134 | $ | 61,825 | $ | 73,959 | $ | 31 | ||||||||||||||
Nonaccrual. Covered 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 covered loan loss provision or prospective yield adjustments. | ||||||||||||||||||||||||||||
Similar to uncovered loans, covered loans accounted for outside FASB ASC Topic 310-30 are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are ninety days or more past due. Generally, these loans are classified as nonaccrual due to the continued failure to adhere to contractual payment terms by the borrower coupled with other pertinent factors, such as insufficient collateral value. The accrual of interest income is discontinued and previously accrued, but unpaid interest is reversed when a loan is classified as nonaccrual. Any payments received while a loan is classified as nonaccrual are applied as a reduction to the carrying value of the loan. A loan may be reclassified as accrual if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. | ||||||||||||||||||||||||||||
Impaired Loans. Covered loans placed on nonaccrual status and covered loans modified as TDRs, excluding loans accounted for under FASB ASC Topic 310-30, are considered impaired. Information on covered nonaccrual loans, TDRs and impaired loans was as follows: | ||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||||||||||
Commercial | $ | 438 | $ | 4,498 | ||||||||||||||||||||||||
Real estate-commercial | 1,899 | 2,986 | ||||||||||||||||||||||||||
Installment | 0 | 0 | ||||||||||||||||||||||||||
Home equity | 2,012 | 4,227 | ||||||||||||||||||||||||||
All other | 6 | 11 | ||||||||||||||||||||||||||
Nonaccrual loans | 4,355 | 11,722 | ||||||||||||||||||||||||||
Accruing troubled debt restructurings | 351 | 0 | ||||||||||||||||||||||||||
Total impaired loans | $ | 4,706 | $ | 11,722 | ||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Interest income effect on impaired loans | ||||||||||||||||||||||||||||
Gross amount of interest that would have been recorded under original terms | $ | 81 | $ | 146 | $ | 334 | $ | 504 | ||||||||||||||||||||
Interest included in income | ||||||||||||||||||||||||||||
Nonaccrual loans | 6 | 9 | 20 | 70 | ||||||||||||||||||||||||
Troubled debt restructurings | 3 | 0 | 6 | 0 | ||||||||||||||||||||||||
Total interest included in income | 9 | 9 | 26 | 70 | ||||||||||||||||||||||||
Net impact on interest income | $ | 72 | $ | 137 | $ | 308 | $ | 434 | ||||||||||||||||||||
First Financial’s investment in covered impaired loans, excluding loans accounted for under FASB ASC Topic 310-30, was as follows: | ||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Current Balance | Unpaid | Related | Average | YTD Interest | Quarterly Interest | ||||||||||||||||||||||
Principal | Allowance | Recorded | Income | Income | ||||||||||||||||||||||||
Balance | Investment | Recognized | Recognized | |||||||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||||||
Commercial | $ | 789 | $ | 1,045 | $ | 0 | $ | 2,072 | $ | 11 | $ | 3 | ||||||||||||||||
Real estate - commercial | 1,899 | 3,342 | 0 | 1,895 | 3 | 1 | ||||||||||||||||||||||
Installment | 0 | 0 | 0 | 2 | 0 | 0 | ||||||||||||||||||||||
Home equity | 2,012 | 2,739 | 0 | 2,790 | 12 | 5 | ||||||||||||||||||||||
All other | 6 | 6 | 0 | 10 | 0 | 0 | ||||||||||||||||||||||
Total | $ | 4,706 | $ | 7,132 | $ | 0 | $ | 6,769 | $ | 26 | $ | 9 | ||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Current Balance | Unpaid | Related | Average | Interest | |||||||||||||||||||||||
Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||||||
Commercial | $ | 4,498 | $ | 4,660 | $ | 0 | $ | 4,526 | $ | 62 | ||||||||||||||||||
Real estate - commercial | 2,986 | 3,216 | 0 | 2,153 | 18 | |||||||||||||||||||||||
Home equity | 4,227 | 5,260 | 0 | 2,006 | 5 | |||||||||||||||||||||||
All other | 11 | 11 | 0 | 13 | 0 | |||||||||||||||||||||||
Total | $ | 11,722 | $ | 13,147 | $ | 0 | $ | 8,698 | $ | 85 | ||||||||||||||||||
Covered OREO. Covered OREO is comprised of properties acquired by the Company through the loan foreclosure or repossession process, or other resolution activities that result in partial or total satisfaction of problem covered loans. These properties remain subject to loss sharing agreements whereby the FDIC reimburses First Financial for the majority of any losses incurred. The acquired properties are recorded at the lower of cost or fair value upon acquisition. Losses arising at the time of acquisition of such properties are charged against the allowance for loan and lease losses. Subsequent write-downs in the carrying value of covered OREO properties are expensed as incurred. Estimated reimbursements due from the FDIC under loss sharing agreements related to any losses upon acquisition or subsequent write-downs in the carrying value of covered OREO are recorded as noninterest income and an increase to the FDIC indemnification asset in the same period. Improvements to the properties may be capitalized if the improvements contribute to the overall value of the property, but may not be capitalized in excess of the net realizable value of the property. | ||||||||||||||||||||||||||||
Changes in covered OREO were as follows: | ||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 22,475 | $ | 25,408 | $ | 28,862 | $ | 44,818 | ||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||
Commercial | 8,572 | 8,578 | 21,063 | 13,677 | ||||||||||||||||||||||||
Residential | 95 | 737 | 472 | 3,423 | ||||||||||||||||||||||||
Total additions | 8,667 | 9,315 | 21,535 | 17,100 | ||||||||||||||||||||||||
Disposals | ||||||||||||||||||||||||||||
Commercial | 2,865 | 5,858 | 19,513 | 24,417 | ||||||||||||||||||||||||
Residential | 76 | 0 | 890 | 2,354 | ||||||||||||||||||||||||
Total disposals | 2,941 | 5,858 | 20,403 | 26,771 | ||||||||||||||||||||||||
Write-downs | ||||||||||||||||||||||||||||
Commercial | 451 | 249 | 2,133 | 5,665 | ||||||||||||||||||||||||
Residential | 0 | 0 | 111 | 866 | ||||||||||||||||||||||||
Total write-downs | 451 | 249 | 2,244 | 6,531 | ||||||||||||||||||||||||
Balance at end of period | $ | 27,750 | $ | 28,616 | $ | 27,750 | $ | 28,616 | ||||||||||||||||||||
ALLOWANCE_FOR_LOAN_AND_LEASE_L
ALLOWANCE FOR LOAN AND LEASE LOSSES | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ' | ||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||||||||||||
Loans - excluding covered loans. For each reporting period, management maintains the allowance for loan and lease losses at a level that it considers sufficient to absorb probable loan and lease losses inherent in the portfolio. Management determines the adequacy of the allowance 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). This evaluation is inherently subjective as it requires utilizing material estimates that may be susceptible to significant change. | |||||||||||||||||||||||||||||||||
In the commercial portfolio, which includes commercial loans, construction and commercial real estate loans and lease financing, impaired loan relationships greater than $250,000 are evaluated to determine the need for a specific allowance based on the borrower's overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Loans are considered impaired when, in the judgment of management, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. | |||||||||||||||||||||||||||||||||
The allowance for non-impaired commercial loans and impaired commercial loan relationships less than $250,000 includes a process of estimating the probable losses inherent in the portfolio by category, based on First Financial's internal system of credit risk ratings and historical loss data. These estimates may also be adjusted for management's estimate of probable losses on specific loan types dependent upon trends in the values of the underlying collateral, delinquent and nonaccrual loans, prevailing economic conditions, changes in lending strategies and other influencing factors. | |||||||||||||||||||||||||||||||||
With the exception of loans modified as TDRs, consumer loans are evaluated by loan type (i.e. residential real estate, installment, etc.), as these loans exhibit homogeneous characteristics. The allowance for consumer loans, which includes residential real estate, installment, home equity, credit card loans and overdrafts, is established by estimating losses inherent in each particular category of consumer loans. The estimate of losses is primarily based on historical loss rates for each category, as well as trends in delinquent and nonaccrual loans, prevailing economic conditions and other significant influencing factors. Consumer loans modified as TDRs greater than $100,000 are individually reviewed to determine if a specific allowance is necessary. | |||||||||||||||||||||||||||||||||
There were no material changes to First Financial's accounting policies or methodology related to the allowance for loan and lease losses during the first nine months of 2013, however certain modifications were made to the estimation process in the third quarter of 2012 to place greater emphasis on quantitative factors such as historical loan losses and less emphasis on qualitative factors. This resulted in a shift in the allocation of the allowance between certain consumer and commercial loan types but had no significant impact on the total allowance for loan and lease losses at September 30, 2013. | |||||||||||||||||||||||||||||||||
The allowance is increased by provision expense and decreased by actual 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 allowance for loan and lease losses were as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 47,047 | $ | 50,952 | $ | 47,777 | $ | 52,576 | |||||||||||||||||||||||||
Provision for loan and lease losses | 1,413 | 3,613 | 6,863 | 15,235 | |||||||||||||||||||||||||||||
Loans charged off | (5,111 | ) | (5,804 | ) | (12,515 | ) | (19,764 | ) | |||||||||||||||||||||||||
Recoveries | 2,165 | 431 | 3,389 | 1,145 | |||||||||||||||||||||||||||||
Balance at end of period | $ | 45,514 | $ | 49,192 | $ | 45,514 | $ | 49,192 | |||||||||||||||||||||||||
Allowance for loan and lease losses to total ending loans | 1.33 | % | 1.6 | % | 1.33 | % | 1.6 | % | |||||||||||||||||||||||||
Year-to-date changes in the allowance for loan and lease losses by loan category were as follows: | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Residential | Installment | Home Equity | Other | Total | |||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 7,926 | $ | 3,268 | $ | 24,151 | $ | 3,599 | $ | 522 | $ | 5,173 | $ | 3,138 | $ | 47,777 | |||||||||||||||||
Provision for loan and lease losses | 3,675 | (3,166 | ) | 3,691 | 260 | (105 | ) | 1,707 | 801 | 6,863 | |||||||||||||||||||||||
Gross charge-offs | 3,122 | 0 | 5,213 | 798 | 296 | 1,703 | 1,383 | 12,515 | |||||||||||||||||||||||||
Recoveries | 478 | 626 | 1,360 | 107 | 244 | 372 | 202 | 3,389 | |||||||||||||||||||||||||
Total net charge-offs | 2,644 | (626 | ) | 3,853 | 691 | 52 | 1,331 | 1,181 | 9,126 | ||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 8,957 | $ | 728 | $ | 23,989 | $ | 3,168 | $ | 365 | $ | 5,549 | $ | 2,758 | $ | 45,514 | |||||||||||||||||
Ending allowance on loans individually evaluated for impairment | $ | 1,645 | $ | 0 | $ | 6,371 | $ | 348 | $ | 0 | $ | 2 | $ | 0 | $ | 8,366 | |||||||||||||||||
Ending allowance on loans collectively evaluated for impairment | 7,312 | 728 | 17,618 | 2,820 | 365 | 5,547 | 2,758 | 37,148 | |||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 8,957 | $ | 728 | $ | 23,989 | $ | 3,168 | $ | 365 | $ | 5,549 | $ | 2,758 | $ | 45,514 | |||||||||||||||||
Loans - excluding covered loans | |||||||||||||||||||||||||||||||||
Ending balance of loans individually evaluated for impairment | $ | 10,203 | $ | 1,099 | $ | 38,162 | $ | 3,624 | $ | 0 | $ | 515 | $ | 0 | $ | 53,603 | |||||||||||||||||
Ending balance of loans collectively evaluated for impairment | 949,813 | 88,990 | 1,455,807 | 349,206 | 49,273 | 373,324 | 110,900 | 3,377,313 | |||||||||||||||||||||||||
Total loans - excluding covered loans | $ | 960,016 | $ | 90,089 | $ | 1,493,969 | $ | 352,830 | $ | 49,273 | $ | 373,839 | $ | 110,900 | $ | 3,430,916 | |||||||||||||||||
Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Residential | Installment | Home Equity | Other | Total | |||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 10,289 | $ | 4,424 | $ | 18,228 | $ | 4,994 | $ | 1,659 | $ | 10,751 | $ | 2,231 | $ | 52,576 | |||||||||||||||||
Provision for loan and lease losses | 1,556 | 1,528 | 16,670 | 346 | (883 | ) | (2,032 | ) | 1,932 | 19,117 | |||||||||||||||||||||||
Gross charge-offs | 4,312 | 2,684 | 11,012 | 1,814 | 577 | 3,661 | 1,252 | 25,312 | |||||||||||||||||||||||||
Recoveries | 393 | 0 | 265 | 73 | 323 | 115 | 227 | 1,396 | |||||||||||||||||||||||||
Total net charge-offs | 3,919 | 2,684 | 10,747 | 1,741 | 254 | 3,546 | 1,025 | 23,916 | |||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 7,926 | $ | 3,268 | $ | 24,151 | $ | 3,599 | $ | 522 | $ | 5,173 | $ | 3,138 | $ | 47,777 | |||||||||||||||||
Ending allowance on loans individually evaluated for impairment | $ | 1,151 | $ | 838 | $ | 7,155 | $ | 290 | $ | 0 | $ | 2 | $ | 92 | $ | 9,528 | |||||||||||||||||
Ending allowance on loans collectively evaluated for impairment | 6,775 | 2,430 | 16,996 | 3,309 | 522 | 5,171 | 3,046 | 38,249 | |||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 7,926 | $ | 3,268 | $ | 24,151 | $ | 3,599 | $ | 522 | $ | 5,173 | $ | 3,138 | $ | 47,777 | |||||||||||||||||
Loans - excluding covered loans | |||||||||||||||||||||||||||||||||
Ending balance of loans individually evaluated for impairment | $ | 16,661 | $ | 2,076 | $ | 35,422 | $ | 2,604 | $ | 0 | $ | 101 | $ | 496 | $ | 57,360 | |||||||||||||||||
Ending balance of loans collectively evaluated for impairment | 844,372 | 71,441 | 1,381,586 | 315,606 | 56,810 | 367,399 | 84,490 | 3,121,704 | |||||||||||||||||||||||||
Total loans - excluding covered loans | $ | 861,033 | $ | 73,517 | $ | 1,417,008 | $ | 318,210 | $ | 56,810 | $ | 367,500 | $ | 84,986 | $ | 3,179,064 | |||||||||||||||||
Covered Loans. In accordance with the accounting guidance for business combinations, there was no allowance brought forward on covered loans as any credit deterioration evident in the loans at the time of acquisition was included in the determination of the fair value of the loans at the acquisition date. | |||||||||||||||||||||||||||||||||
The majority of covered loans are accounted for under FASB ASC Topic 310-30, whereby First Financial is required to periodically re-estimate the expected cash flows on the loans. For purposes of applying the guidance under FASB ASC Topic 310-30, First Financial grouped acquired loans into pools based on common risk characteristics. Generally, a decline in expected cash flows for a pool of loans is referred to as impairment and recorded as provision expense, and a related allowance for loan and lease losses on covered loans, on a discounted basis during the period. Estimated reimbursements due from the FDIC under loss sharing agreements related to any declines in expected cash flows for a pool of loans are recorded as noninterest income and an increase to the FDIC indemnification asset in the same period. Improvement in expected cash flows for a pool of loans, once any previously recorded impairment is recaptured, is recognized prospectively as an adjustment to the yield on the loans in the pool and a related adjustment to the yield on the FDIC indemnification asset. | |||||||||||||||||||||||||||||||||
First Financial performs periodic valuation procedures to re-estimate the expected cash flows on covered loans accounted for under FASB ASC Topic 310-30 and compare the present value of expected cash flows to the carrying value of the loans at the pool level. In order to estimate expected cash flows, First Financial specifically reviews a sample of these covered loans to assist in the determination of appropriate probability of default and loss given default assumptions to be applied to the remainder of the portfolio. The estimate of expected cash flows may also be adjusted for management's estimate of probable losses on specific loan types dependent upon trends in observable market and industry data, such as prepayment speeds and collateral values. Additionally, during the second quarter of 2013, the Company implemented certain enhancements to its valuation methodology and the estimation of impairment to place greater emphasis on changes in total expected cash flows and less emphasis on changes in the net present value of expected cash flows. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. | |||||||||||||||||||||||||||||||||
First Financial updated the valuations related to covered loans during the third quarter 2013 and, as a result of impairment in certain loan pools, recognized provision expense of $5.3 million and realized net charge-offs of $15.0 million during the quarter, resulting in an allowance for covered loan losses of $23.3 million as of September 30, 2013. First Financial recognized provision expense on covered loans of $6.1 million and realized net charge-offs of $28.0 million for the first nine months of 2013. For the third quarter of 2012, First Financial recognized provision expense on covered loans of $6.6 million related to net charge-offs of $6.1 million during the period. Likewise, for the first nine months of 2012, the Company recognized provision expense on covered loans of $25.6 million and net charge-offs of $19.6 million. | |||||||||||||||||||||||||||||||||
First Financial also recognized loss sharing expense of $1.7 million and $3.6 million for the third quarter of 2013 and 2012, respectively, primarily related to attorney fees, appraisal costs and delinquent taxes during the periods. Additionally, the Company recognized losses on sales of covered OREO of $0.2 million for the third quarter of 2013 and gains on covered OREO of $25.0 thousand for the third quarter of 2012. The receivable due from the FDIC under loss sharing agreements, related to covered loan provision expense, gains/losses on covered OREO and loss sharing expenses, of $5.6 million and $8.5 million for the third quarter of 2013 and 2012, respectively, was recognized as FDIC loss sharing income and a corresponding increase to the FDIC indemnification asset. | |||||||||||||||||||||||||||||||||
On a year-to-date basis, First Financial recognized loss sharing expense of $5.6 million and $8.4 million for 2013 and 2012 respectively. Similarly, on a year-to-date basis, the Company recognized gains on covered OREO of $2.2 million for 2013 and losses on covered OREO of $2.5 million for 2012. The receivable due from the FDIC under loss sharing agreements related to covered loan provision expense, gains/losses on covered OREO and loss sharing expenses of $7.1 million for the first nine months of 2013 and $29.6 million for the comparable period in 2012, was recognized as FDIC loss sharing income and a corresponding increase to the FDIC indemnification asset. | |||||||||||||||||||||||||||||||||
The allowance for loan and lease losses on covered loans is presented in the tables below: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | Installment | Total | ||||||||||||||||||||||||||||
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | $ | 8,587 | $ | 13,508 | $ | 993 | $ | 171 | $ | 23,259 | |||||||||||||||||||||||
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Ending allowance on covered loans | $ | 8,587 | $ | 13,508 | $ | 993 | $ | 171 | $ | 23,259 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | Installment | Total | ||||||||||||||||||||||||||||
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | $ | 19,136 | $ | 22,918 | $ | 2,599 | $ | 537 | $ | 45,190 | |||||||||||||||||||||||
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Ending allowance on covered loans | $ | 19,136 | $ | 22,918 | $ | 2,599 | $ | 537 | $ | 45,190 | |||||||||||||||||||||||
Changes in the allowance for loan and lease losses on covered loans were as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 32,961 | $ | 48,327 | $ | 45,190 | $ | 42,835 | |||||||||||||||||||||||||
Provision for loan and lease losses | 5,293 | 6,622 | 6,052 | 25,620 | |||||||||||||||||||||||||||||
Loans charged-off | (21,009 | ) | (9,058 | ) | (35,374 | ) | (24,339 | ) | |||||||||||||||||||||||||
Recoveries | 6,014 | 3,004 | 7,391 | 4,779 | |||||||||||||||||||||||||||||
Balance at end of period | $ | 23,259 | $ | 48,895 | $ | 23,259 | $ | 48,895 | |||||||||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
For the third quarter 2013, income tax expense was $7.6 million, resulting in an effective tax rate of 33.9%, compared with income tax expense of $8.9 million and an effective tax rate of 35.4% for the comparable period in 2012. For the first nine months of 2013, income tax expense was $20.5 million, resulting in an effective tax rate of 31.5%, compared with income tax expense of $27.2 million and an effective tax rate of 34.8% for the comparable period in 2012. The decline in the effective tax rate for the third quarter 2013 as compared to the third quarter 2012 was primarily the result of state tax planning strategies implemented during 2013, including the formation of a captive real estate investment trust, as well as higher income earned on tax-exempt investment securities. Similarly, the decline in the effective tax rate for the nine months ended September 30, 2013 as compared to the same period in 2012 was the result of state tax planning strategies and higher income earned on tax-exempt investment securities as well as favorable tax reversals related to an intercompany tax obligation associated with an unconsolidated former Irwin subsidiary and an adjustment to deferred tax liabilities relating to a favorable change in state tax laws in 2013. | |
At September 30, 2013, and December 31, 2012, First Financial had no FASB ASC Topic 740-10 unrecognized tax benefits recorded. First Financial does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. | |
First Financial recognizes interest and penalties on income tax assessments or income tax refunds in the Consolidated Financial Statements as a component of noninterest expense. | |
First Financial regularly reviews its tax positions and establishes reserves for income tax-related uncertainties based on estimates of whether it is more likely than not that the tax uncertainty would be sustained upon challenge by the appropriate tax authorities which would then result in additional taxes, penalties and interest due. These evaluations are inherently subjective as they require material estimates and may be susceptible to significant change. Provision for tax reserves, if any, is included in income tax expense in the Consolidated Financial Statements. Management determined that no reserve for income tax-related uncertainties was necessary as of September 30, 2013 and December 31, 2012. | |
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 2010 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2010 through 2012 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 2009. Tax years 2009 through 2012 remain open to state and local examination in various jurisdictions. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||
EMPLOYEE BENEFIT PLANS | |||||||||||||||||
First Financial sponsors a non-contributory defined benefit pension plan covering substantially all employees and uses a December 31 measurement date for its defined benefit pension plan. First Financial made no cash contributions to fund the pension plan during the nine months ended September 30, 2013 and does not expect to make cash contributions to the plan through the remainder of the year. First Financial made no cash contributions to fund the pension plan in 2012. | |||||||||||||||||
During the second quarter 2013, First Financial re-measured the Company's pension assets and liabilities, and recognized pension settlement charges, as a result of the year-to-date level of lump sum distributions from the Company's pension plan. Consistent with FASB ASC Topic 715, Compensation - Retirement Benefits, pension settlement charges are an acceleration of previously deferred costs that would have been recognized in future periods and are triggered when lump sum distributions exceed an annual accounting threshold for the plan. These pension settlement charges were a result of employee-related actions, including staff retirements as well as recent efficiency initiatives, and the resulting lump sum distributions from First Financial's pension plan. First Financial recognized pension settlement charges of $1.4 million and $5.7 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||
Primarily as a result of the pension plan re-measurement and pension settlement charges during the second and third quarters, First Financial recorded $19.2 million of pre-tax adjustments to other comprehensive income related to changes in the values of the Company's pension assets and pension obligations for the nine months ended September 30, 2013. As a result of the plan’s updated actuarial projections for 2013 as well as the previously mentioned settlement charges, First Financial recorded expenses related to its pension plan of $5.3 million for the nine months ended September 30, 2013, compared to income of $0.4 million for the same period in 2012. Similarly, First Financial recorded pension plan expenses of $1.1 million in the third quarter of 2013 compared to pension plan income of $0.1 million in the third quarter of 2012. | |||||||||||||||||
As First Financial has exceeded the annual accounting threshold for lump sum distributions for 2013, the Company will continue to recognize a proportionate share of any further lump sum distributions from its pension plan as additional pension settlement charges through the remainder of the year. The accounting threshold for lump sum distributions will reset at the beginning of 2014. | |||||||||||||||||
The following table sets forth information concerning amounts recognized in First Financial’s Consolidated Balance Sheets and Consolidated Statements of Income: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 916 | $ | 894 | $ | 2,789 | $ | 2,559 | |||||||||
Interest cost | 566 | 606 | 1,752 | 1,986 | |||||||||||||
Expected return on assets | (2,231 | ) | (2,281 | ) | (6,755 | ) | (6,751 | ) | |||||||||
Amortization of prior service cost | (105 | ) | (106 | ) | (317 | ) | (316 | ) | |||||||||
Net actuarial loss | 582 | 780 | 2,128 | 2,130 | |||||||||||||
Settlement charge | 1,396 | 0 | 5,712 | 0 | |||||||||||||
Net periodic benefit cost (income) | $ | 1,124 | $ | (107 | ) | $ | 5,309 | $ | (392 | ) | |||||||
FAIR_VALUE_DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE DISCLOSURES | ' | ||||||||||||||||||||
FAIR VALUE DISCLOSURES | |||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||
The fair value framework as disclosed in the Fair Value Measurements and Disclosure Topic of FASB ASC Topic 825, Financial Instruments (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 following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value and in estimating its fair value disclosures for financial instruments. | |||||||||||||||||||||
Cash and short-term investments. The carrying amounts reported in the Consolidated Balance Sheets for cash and short-term investments, such as federal funds sold, approximated the fair value of those instruments. The Company classifies cash and short-term investments in Level 1 of the fair value hierarchy. | |||||||||||||||||||||
Investment securities. Investment securities classified as trading and 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 above are considered Level 3. | |||||||||||||||||||||
First Financial utilizes information provided by a third-party investment securities administrator in analyzing the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic. The administrator’s evaluation of investment security portfolio pricing is performed using a combination of prices and data from other sources, along with internally developed matrix pricing models and assistance from the administrator’s internal fixed income analysts and trading desk. The administrator’s month-end pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, previous evaluation prices and between the various pricing services. These processes produce a series of quality assurance reports on which price exceptions are identified, reviewed and where appropriate, securities are repriced. In the event of a materially different price, the administrator will report the variance as a “price challenge” and review the pricing methodology in detail. The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager. | |||||||||||||||||||||
First Financial reviews the pricing methodologies utilized by the administrator to ensure the fair value determination is consistent with the applicable accounting guidance and that the investments are properly classified in the fair value hierarchy. Further, the Company periodically validates the fair values for a sample of securities in the portfolio by comparing the fair values provided by the administrator to prices from other independent sources for the same or similar securities. First Financial analyzes unusual or significant variances, conducts additional research with the administrator, if necessary, and takes appropriate action based on its findings. | |||||||||||||||||||||
Loans held for sale. Loans held for sale are carried at the lower of cost or fair value. These loans currently consist of one-to-four family residential real estate loans originated for sale to qualified third parties. Fair value is based on the contractual price to be received from these third parties, which is not materially different than cost due to the short duration between origination and sale (Level 2). As such, First Financial records any fair value adjustments on a nonrecurring basis. Gains and losses on the sale of loans are recorded as net gains from sales of loans within noninterest income in the Consolidated Statements of Income. | |||||||||||||||||||||
Loans - excluding covered loans. The fair value of commercial, commercial real estate, residential real estate and consumer loans were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or repricing frequency. The Company classifies the estimated fair value of uncovered loans as Level 3 in the fair value hierarchy. | |||||||||||||||||||||
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Impaired loans are valued at the lower of cost or fair value for purposes of determining the appropriate amount of impairment to be allocated to the allowance for loan and lease losses. 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 vast majority of the collateral is real estate. 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 upon an outside appraisal if deemed significant, or the net book value on the applicable borrower financial statements if not considered significant. 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 allocated to the allowance for loan and lease losses 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. | |||||||||||||||||||||
Covered loans. Fair values for covered loans accounted for under FASB ASC Topic 310-30 are based on a discounted cash flow methodology that considers factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of the loan and whether or not the loan was amortizing and a discount rate reflecting the Company's assessment of risk inherent in the cash flow estimates. These covered loans are grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. First Financial estimated the cash flows expected to be collected on these loans based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. | |||||||||||||||||||||
Fair values for covered loans accounted for outside of FASB ASC Topic 310-30 were estimated by discounting the future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or repricing frequency. The carrying amount of accrued interest approximates its fair value. | |||||||||||||||||||||
The Company classifies the estimated fair value of covered loans as Level 3 in the fair value hierarchy. | |||||||||||||||||||||
FDIC indemnification asset. The accounting for FDIC indemnification assets is closely related to the accounting for the underlying, indemnified assets. Fair value of the FDIC indemnification asset was estimated using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. First Financial re-estimates the expected indemnification asset cash flows in conjunction with the periodic re-estimation of cash flows on covered loans accounted for under FASB ASC Topic 310-30. Improvements in cash flow expectations on covered loans generally result in a related decline in the expected indemnification cash flows while declines in cash flow expectations on covered loans generally result in an increase in expected indemnification cash flows. | |||||||||||||||||||||
The expected cash flows are discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. The Company classifies the estimated fair value of the indemnification asset as Level 3 in the fair value hierarchy. | |||||||||||||||||||||
Deposit liabilities. The fair value of demand deposits, savings accounts and certain money-market deposits was the amount payable on demand at the reporting date. The carrying amounts for variable-rate certificates of deposit approximated their fair values at the reporting date. The fair value of fixed-rate certificates of deposit was estimated using a discounted cash flow calculation which applies the interest rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest approximates its fair value. The Company classifies the estimated fair value of deposit liabilities as Level 2 in the fair value hierarchy. | |||||||||||||||||||||
Borrowings. The carrying amounts of federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings approximate their fair values. The Company classifies the estimated fair value of short-term borrowings as Level 1 of the fair value hierarchy. | |||||||||||||||||||||
The fair value of long-term debt is estimated using a discounted cash flow calculation which utilizes the interest rates currently offered for borrowings of similar remaining maturities. Third-party valuations are used for long-term debt with embedded options, such as call features. The Company classifies the estimated fair value of long-term debt as Level 2 in the fair value hierarchy. | |||||||||||||||||||||
Commitments to extend credit and standby letters of credit. Pricing of these financial instruments is based on the credit quality and relationship, fees, interest rates, probability of funding and compensating balance and other covenants or requirements. Loan commitments generally have fixed expiration dates, are variable rate and contain termination and other clauses which provide for relief from funding in the event that there is a significant deterioration in the credit quality of the client. Many loan commitments are expected to expire without being drawn upon. The rates and terms of the commitments to extend credit and the standby letters of credit are competitive with those in First Financial’s market area. The carrying amounts are reasonable estimates of the fair value of these financial instruments. Carrying amounts, which are comprised of the | |||||||||||||||||||||
unamortized fee income and, where necessary, reserves for any expected credit losses from these financial instruments, are immaterial. | |||||||||||||||||||||
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. The discounted net present value calculated represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes a vendor-developed, proprietary model to value the credit risk component of both the derivative assets and liabilities. The credit valuation adjustment 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 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: | |||||||||||||||||||||
Carrying | Estimated Fair Value | ||||||||||||||||||||
(Dollars in thousands) | value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and short-term investments | $ | 188,112 | $ | 188,112 | $ | 188,112 | $ | 0 | $ | 0 | |||||||||||
Investment securities held-to-maturity | 669,093 | 661,685 | 0 | 661,685 | 0 | ||||||||||||||||
Other investments | 75,945 | 75,945 | 0 | 75,945 | 0 | ||||||||||||||||
Loans held for sale | 10,704 | 10,704 | 0 | 10,704 | 0 | ||||||||||||||||
Loans - excluding covered loans | 3,385,402 | 3,379,595 | 0 | 0 | 3,379,595 | ||||||||||||||||
Covered loans | 495,265 | 504,781 | 0 | 0 | 504,781 | ||||||||||||||||
FDIC indemnification asset | 78,132 | 57,978 | 0 | 0 | 57,978 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Noninterest-bearing | $ | 1,141,016 | $ | 1,141,016 | $ | 0 | $ | 1,141,016 | $ | 0 | |||||||||||
Interest-bearing demand | 1,068,067 | 1,068,067 | 0 | 1,068,067 | 0 | ||||||||||||||||
Savings | 1,593,895 | 1,593,895 | 0 | 1,593,895 | 0 | ||||||||||||||||
Time | 926,029 | 921,933 | 0 | 921,933 | 0 | ||||||||||||||||
Total deposits | 4,729,007 | 4,724,911 | 0 | 4,724,911 | 0 | ||||||||||||||||
Short-term borrowings | 623,672 | 623,672 | 623,672 | 0 | 0 | ||||||||||||||||
Long-term debt | 61,088 | 63,338 | 0 | 63,338 | 0 | ||||||||||||||||
Carrying | Estimated Fair Value | ||||||||||||||||||||
(Dollars in thousands) | value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and short-term investments | $ | 158,843 | $ | 158,843 | $ | 158,843 | $ | 0 | $ | 0 | |||||||||||
Investment securities held-to-maturity | 770,755 | 778,474 | 0 | 778,474 | 0 | ||||||||||||||||
Other investments | 71,492 | 71,492 | 0 | 71,492 | 0 | ||||||||||||||||
Loans held for sale | 16,256 | 16,256 | 0 | 16,256 | 0 | ||||||||||||||||
Loans - excluding covered loans | 3,131,287 | 3,145,120 | 0 | 0 | 3,145,120 | ||||||||||||||||
Covered loans | 702,926 | 713,797 | 0 | 0 | 713,797 | ||||||||||||||||
FDIC indemnification asset | 119,607 | 106,380 | 0 | 0 | 106,380 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Noninterest-bearing | $ | 1,102,774 | $ | 1,102,774 | $ | 0 | $ | 1,102,774 | $ | 0 | |||||||||||
Interest-bearing demand | 1,160,815 | 1,160,815 | 0 | 1,160,815 | 0 | ||||||||||||||||
Savings | 1,623,614 | 1,623,614 | 0 | 1,623,614 | 0 | ||||||||||||||||
Time | 1,068,637 | 1,072,201 | 0 | 1,072,201 | 0 | ||||||||||||||||
Total deposits | 4,955,840 | 4,959,404 | 0 | 4,959,404 | 0 | ||||||||||||||||
Short-term borrowings | 624,570 | 624,570 | 624,570 | 0 | 0 | ||||||||||||||||
Long-term debt | 75,202 | 78,941 | 0 | 78,941 | 0 | ||||||||||||||||
The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
Adjustments (1) | at Fair Value | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 14,848 | $ | 0 | $ | (14,848 | ) | $ | 0 | ||||||||||
Available-for-sale investment securities | 185 | 854,562 | 0 | 0 | 854,747 | ||||||||||||||||
Total | $ | 185 | $ | 869,410 | $ | 0 | $ | (14,848 | ) | $ | 854,747 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 16,044 | $ | 0 | $ | (14,848 | ) | $ | 1,196 | ||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
Adjustments (1) | at Fair Value | ||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 24,135 | $ | 0 | $ | (24,135 | ) | $ | 0 | ||||||||||
Available-for-sale investment securities | 144 | 1,031,952 | 0 | 0 | 1,032,096 | ||||||||||||||||
Total | $ | 144 | $ | 1,056,087 | $ | 0 | $ | (24,135 | ) | $ | 1,032,096 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 26,652 | $ | 0 | $ | (24,135 | ) | $ | 2,517 | ||||||||||
(1) Amounts represent the impact of legally enforceable master netting arrangements that allow First Financial to settle positive and negative positions and also cash collateral held with the same counterparties. | |||||||||||||||||||||
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 lower of cost or 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. | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans (1) | $ | 0 | $ | 0 | $ | 21,390 | |||||||||||||||
OREO | 0 | 0 | 6,346 | ||||||||||||||||||
Covered OREO | 0 | 0 | 7,722 | ||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans (1) | $ | 0 | $ | 0 | $ | 19,564 | |||||||||||||||
OREO | 0 | 0 | 5,651 | ||||||||||||||||||
Covered OREO | 0 | 0 | 14,059 | ||||||||||||||||||
(1) Amounts represent the fair value of collateral for impaired loans allocated to the allowance for loan and lease losses. Fair values are determined using actual market prices (Level 1), independent third party valuations and borrower records, discounted as appropriate (Level 3). |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Total other comprehensive income | Total accumulated | |||||||||||||||||||||||||||||||
other comprehensive income | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Prior to | Reclassification | Pre-tax | Tax-effect | Net of tax | Beginning Balance | Net Activity | Ending Balance | ||||||||||||||||||||||||
Reclassification | from | |||||||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | $ | (34,212 | ) | $ | 1,724 | $ | (35,936 | ) | $ | 13,366 | $ | (22,570 | ) | $ | 12,802 | $ | (22,570 | ) | $ | (9,768 | ) | |||||||||||
Unrealized gain (loss) on derivatives | (298 | ) | (295 | ) | (3 | ) | 1 | (2 | ) | (143 | ) | (2 | ) | (145 | ) | |||||||||||||||||
Retirement obligation | 11,719 | (7,523 | ) | 19,242 | (7,266 | ) | 11,976 | (31,338 | ) | 11,976 | (19,362 | ) | ||||||||||||||||||||
Foreign currency translation | (21 | ) | 0 | (21 | ) | 0 | (21 | ) | 2 | (21 | ) | (19 | ) | |||||||||||||||||||
Total | $ | (22,812 | ) | $ | (6,094 | ) | $ | (16,718 | ) | $ | 6,101 | $ | (10,617 | ) | $ | (18,677 | ) | $ | (10,617 | ) | $ | (29,294 | ) | |||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Total other comprehensive income | Total accumulated | |||||||||||||||||||||||||||||||
other comprehensive income | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pre-tax | Tax-effect | Net of tax | Beginning Balance | Net Activity | Ending Balance | ||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | $ | 2,671 | $ | (1,009 | ) | $ | 1,662 | $ | 12,669 | $ | 1,662 | $ | 14,331 | |||||||||||||||||||
Unrealized gain (loss) on cash flow hedges | (292 | ) | 110 | (182 | ) | 0 | (182 | ) | (182 | ) | ||||||||||||||||||||||
Retirement obligation | 1,814 | (685 | ) | 1,129 | (34,136 | ) | 1,129 | (33,007 | ) | |||||||||||||||||||||||
Foreign currency translation | 26 | 0 | 26 | (23 | ) | 26 | 3 | |||||||||||||||||||||||||
Total | $ | 4,219 | $ | (1,584 | ) | $ | 2,635 | $ | (21,490 | ) | $ | 2,635 | $ | (18,855 | ) | |||||||||||||||||
The following table details the activity reclassified from accumulated other comprehensive income into income during the period: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount Reclassified from Accumulated Other Comprehensive Income (1) | Affected Line Item in the Consolidated Statements of Income | ||||||||||||||||||||||||||||||
Gains and losses on cash flow hedges | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (295 | ) | Interest expense - deposits | ||||||||||||||||||||||||||||
Realized gains and losses on securities available-for-sale | 1,724 | Gains on sales of investments securities | ||||||||||||||||||||||||||||||
Defined benefit pension plan | ||||||||||||||||||||||||||||||||
Amortization of prior service cost | 317 | (2) | ||||||||||||||||||||||||||||||
Recognized net actuarial loss | (2,128 | ) | (2) | |||||||||||||||||||||||||||||
Pension settlement charges | (5,712 | ) | Pension settlement charges | |||||||||||||||||||||||||||||
Amortization and settlement charges of defined benefit pension items | (7,523 | ) | ||||||||||||||||||||||||||||||
Total reclassifications for the period, before tax | $ | (6,094 | ) | |||||||||||||||||||||||||||||
(1) Negative amount are debits to profit/loss. | ||||||||||||||||||||||||||||||||
(2) Included in the computation of net periodic pension cost (see employee benefit footnote for additional details). |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator | |||||||||||||||||
Net income available to common shareholders | $ | 14,911 | $ | 16,242 | $ | 44,564 | $ | 51,038 | |||||||||
Denominator | |||||||||||||||||
Basic earnings per common share - weighted average shares | 57,201,390 | 57,976,943 | 57,309,934 | 57,902,102 | |||||||||||||
Effect of dilutive securities — | |||||||||||||||||
Employee stock awards | 698,194 | 842,833 | 725,862 | 905,210 | |||||||||||||
Warrants | 113,004 | 120,403 | 107,576 | 123,258 | |||||||||||||
Diluted earnings per common share - adjusted weighted average shares | 58,012,588 | 58,940,179 | 58,143,372 | 58,930,570 | |||||||||||||
Earnings per share available to common shareholders | |||||||||||||||||
Basic | $ | 0.26 | $ | 0.28 | $ | 0.78 | $ | 0.88 | |||||||||
Diluted | $ | 0.26 | $ | 0.28 | $ | 0.77 | $ | 0.87 | |||||||||
Warrants to purchase 465,117 shares of the Company's common stock were outstanding as of September 30, 2013 and 2012. These warrants, each representing the right to purchase one share of common stock, no par value per share, have an exercise price of $12.12 and expire on December 23, 2018. | |||||||||||||||||
Stock options and warrants, where the exercise price was greater than the average market price of the common shares were not included in the computation of net income per diluted share as they would have been antidilutive. These out-of-the-money options were 596,666 and 354,876 at September 30, 2013 and 2012, respectively. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation Policy | ' |
The Consolidated Financial Statements of First Financial, a bank holding company principally serving Ohio, Indiana and Kentucky, include the accounts and operations of First Financial and its wholly-owned subsidiary – First Financial Bank, N.A. (First Financial Bank or the Bank). All significant intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications of prior periods’ amounts have been made to conform to the current period’s presentation and had no effect on net earnings. | |
Use of Estimates, Policy | ' |
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Actual realized amounts could differ materially from those estimates. | |
Goodwill and Intangible Assets, Goodwill, Policy | ' |
Goodwill. Assets and liabilities of acquired entities 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 is not amortized, but is measured 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 | ' |
Other intangible assets. Other intangible assets consist primarily of core deposit intangibles. Core deposit intangibles are recorded at their estimated fair value as of the acquisition date and are then amortized on an accelerated basis over their estimated useful lives. | |
Commitments and Contingencies, Policy | ' |
In the normal course of business, First Financial offers a variety of financial instruments with off-balance-sheet risk to its clients to assist them in meeting their requirements for liquidity and credit enhancement. These financial instruments include standby letters of credit and outstanding commitments to extend credit. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements. | |
First Financial’s exposure to credit loss, in the event of nonperformance by the other party to the financial instrument for standby letters of credit, and outstanding commitments to extend credit, is represented by the contractual amounts of those instruments. First Financial uses the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. | |
Certain Loans and Debt Securities Acquired in Transfer, Recognizing Interest Income on Impaired Loans, Policy | ' |
First Financial accounts for the majority of covered loans under FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, except loans with revolving privileges, which are outside the scope of this guidance, and loans for which cash flows could not be estimated, which are accounted for under the cost recovery method. Loans accounted for under FASB ASC Topic 310-30 are referred to as purchased impaired loans. | |
Purchased impaired loans are not classified as nonperforming assets as the loans are considered to be performing under FASB ASC Topic 310-30. Therefore, interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows (accretable difference) is recognized on all covered purchased impaired loans. | |
Fair Value of Financial Instruments, Policy | ' |
Fair Value Measurement | |
The fair value framework as disclosed in the Fair Value Measurements and Disclosure Topic of FASB ASC Topic 825, Financial Instruments (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 following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value and in estimating its fair value disclosures for financial instruments. | |
Cash and short-term investments. The carrying amounts reported in the Consolidated Balance Sheets for cash and short-term investments, such as federal funds sold, approximated the fair value of those instruments. The Company classifies cash and short-term investments in Level 1 of the fair value hierarchy. | |
Investment securities. Investment securities classified as trading and 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 above are considered Level 3. | |
First Financial utilizes information provided by a third-party investment securities administrator in analyzing the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic. The administrator’s evaluation of investment security portfolio pricing is performed using a combination of prices and data from other sources, along with internally developed matrix pricing models and assistance from the administrator’s internal fixed income analysts and trading desk. The administrator’s month-end pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, previous evaluation prices and between the various pricing services. These processes produce a series of quality assurance reports on which price exceptions are identified, reviewed and where appropriate, securities are repriced. In the event of a materially different price, the administrator will report the variance as a “price challenge” and review the pricing methodology in detail. The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager. | |
First Financial reviews the pricing methodologies utilized by the administrator to ensure the fair value determination is consistent with the applicable accounting guidance and that the investments are properly classified in the fair value hierarchy. Further, the Company periodically validates the fair values for a sample of securities in the portfolio by comparing the fair values provided by the administrator to prices from other independent sources for the same or similar securities. First Financial analyzes unusual or significant variances, conducts additional research with the administrator, if necessary, and takes appropriate action based on its findings. | |
Loans held for sale. Loans held for sale are carried at the lower of cost or fair value. These loans currently consist of one-to-four family residential real estate loans originated for sale to qualified third parties. Fair value is based on the contractual price to be received from these third parties, which is not materially different than cost due to the short duration between origination and sale (Level 2). As such, First Financial records any fair value adjustments on a nonrecurring basis. Gains and losses on the sale of loans are recorded as net gains from sales of loans within noninterest income in the Consolidated Statements of Income. | |
Loans - excluding covered loans. The fair value of commercial, commercial real estate, residential real estate and consumer loans were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or repricing frequency. The Company classifies the estimated fair value of uncovered loans as Level 3 in the fair value hierarchy. | |
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Impaired loans are valued at the lower of cost or fair value for purposes of determining the appropriate amount of impairment to be allocated to the allowance for loan and lease losses. 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 vast majority of the collateral is real estate. 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 upon an outside appraisal if deemed significant, or the net book value on the applicable borrower financial statements if not considered significant. 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 allocated to the allowance for loan and lease losses 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. | |
Covered loans. Fair values for covered loans accounted for under FASB ASC Topic 310-30 are based on a discounted cash flow methodology that considers factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of the loan and whether or not the loan was amortizing and a discount rate reflecting the Company's assessment of risk inherent in the cash flow estimates. These covered loans are grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. First Financial estimated the cash flows expected to be collected on these loans based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. | |
Fair values for covered loans accounted for outside of FASB ASC Topic 310-30 were estimated by discounting the future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or repricing frequency. The carrying amount of accrued interest approximates its fair value. | |
The Company classifies the estimated fair value of covered loans as Level 3 in the fair value hierarchy. | |
FDIC indemnification asset. The accounting for FDIC indemnification assets is closely related to the accounting for the underlying, indemnified assets. Fair value of the FDIC indemnification asset was estimated using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. First Financial re-estimates the expected indemnification asset cash flows in conjunction with the periodic re-estimation of cash flows on covered loans accounted for under FASB ASC Topic 310-30. Improvements in cash flow expectations on covered loans generally result in a related decline in the expected indemnification cash flows while declines in cash flow expectations on covered loans generally result in an increase in expected indemnification cash flows. | |
The expected cash flows are discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. The Company classifies the estimated fair value of the indemnification asset as Level 3 in the fair value hierarchy. | |
Deposit liabilities. The fair value of demand deposits, savings accounts and certain money-market deposits was the amount payable on demand at the reporting date. The carrying amounts for variable-rate certificates of deposit approximated their fair values at the reporting date. The fair value of fixed-rate certificates of deposit was estimated using a discounted cash flow calculation which applies the interest rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest approximates its fair value. The Company classifies the estimated fair value of deposit liabilities as Level 2 in the fair value hierarchy. | |
Borrowings. The carrying amounts of federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings approximate their fair values. The Company classifies the estimated fair value of short-term borrowings as Level 1 of the fair value hierarchy. | |
The fair value of long-term debt is estimated using a discounted cash flow calculation which utilizes the interest rates currently offered for borrowings of similar remaining maturities. Third-party valuations are used for long-term debt with embedded options, such as call features. The Company classifies the estimated fair value of long-term debt as Level 2 in the fair value hierarchy. | |
Commitments to extend credit and standby letters of credit. Pricing of these financial instruments is based on the credit quality and relationship, fees, interest rates, probability of funding and compensating balance and other covenants or requirements. Loan commitments generally have fixed expiration dates, are variable rate and contain termination and other clauses which provide for relief from funding in the event that there is a significant deterioration in the credit quality of the client. Many loan commitments are expected to expire without being drawn upon. The rates and terms of the commitments to extend credit and the standby letters of credit are competitive with those in First Financial’s market area. The carrying amounts are reasonable estimates of the fair value of these financial instruments. Carrying amounts, which are comprised of the | |
unamortized fee income and, where necessary, reserves for any expected credit losses from these financial instruments, are immaterial. | |
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. The discounted net present value calculated represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes a vendor-developed, proprietary model to value the credit risk component of both the derivative assets and liabilities. The credit valuation adjustment 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. | |
Credit Risk | ' |
Derivatives, Methods of Accounting, Hedging Derivatives | ' |
First Financial manages the market value credit risk associated with counterparties through counterparty credit policies. These policies require the Company to maintain a total derivative notional position of less than 35% of assets, total credit exposure of less than 3% of capital and no single counterparty credit risk exposure greater than $20.0 million. | |
Non Covered Loans | ' |
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 ninety 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 such as insufficient collateral value. The accrual of interest income is discontinued and previously accrued, but unpaid interest is reversed when a loan is classified as nonaccrual. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan may be reclassified back to accrual status if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. | |
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | ' |
A loan modification is considered a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) 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 terms of the loan modification. | |
Impaired Financing Receivable, Policy | ' |
Loans classified as nonaccrual and loans modified as TDRs are considered impaired. | |
First Financial individually reviews all impaired commercial loan relationships greater than $250,000, as well as consumer loan TDRs greater than $100,000, to determine if a specific allowance based on the borrower’s overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral is necessary. Specific allowances are based on expected cash flows, discounted using the loan's initial effective interest rate or the fair value of the collateral for certain collateral dependent loans. | |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy | ' |
Other real estate owned (OREO) is comprised of properties acquired by the Company through the loan foreclosure or repossession process, or other resolution activity that results in partial or total satisfaction of problem loans. The acquired properties are recorded at the lower of cost or fair value less estimated costs of disposal (net realizable value) upon acquisition. Losses arising at the time of acquisition of such properties are charged against the allowance for loan and lease losses. Subsequent write-downs in the carrying value of OREO properties are expensed as incurred. Improvements to the properties may be capitalized if the improvements contribute to the overall value of the property, but may not be capitalized in excess of the net realizable value of the property. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy | ' |
For each reporting period, management maintains the allowance for loan and lease losses at a level that it considers sufficient to absorb probable loan and lease losses inherent in the portfolio. Management determines the adequacy of the allowance 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). This evaluation is inherently subjective as it requires utilizing material estimates that may be susceptible to significant change. | |
In the commercial portfolio, which includes commercial loans, construction and commercial real estate loans and lease financing, impaired loan relationships greater than $250,000 are evaluated to determine the need for a specific allowance based on the borrower's overall financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. Loans are considered impaired when, in the judgment of management, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. | |
The allowance for non-impaired commercial loans and impaired commercial loan relationships less than $250,000 includes a process of estimating the probable losses inherent in the portfolio by category, based on First Financial's internal system of credit risk ratings and historical loss data. These estimates may also be adjusted for management's estimate of probable losses on specific loan types dependent upon trends in the values of the underlying collateral, delinquent and nonaccrual loans, prevailing economic conditions, changes in lending strategies and other influencing factors. | |
With the exception of loans modified as TDRs, consumer loans are evaluated by loan type (i.e. residential real estate, installment, etc.), as these loans exhibit homogeneous characteristics. The allowance for consumer loans, which includes residential real estate, installment, home equity, credit card loans and overdrafts, is established by estimating losses inherent in each particular category of consumer loans. The estimate of losses is primarily based on historical loss rates for each category, as well as trends in delinquent and nonaccrual loans, prevailing economic conditions and other significant influencing factors. Consumer loans modified as TDRs greater than $100,000 are individually reviewed to determine if a specific allowance is necessary. | |
There were no material changes to First Financial's accounting policies or methodology related to the allowance for loan and lease losses during the first nine months of 2013, however certain modifications were made to the estimation process in the third quarter of 2012 to place greater emphasis on quantitative factors such as historical loan losses and less emphasis on qualitative factors. This resulted in a shift in the allocation of the allowance between certain consumer and commercial loan types but had no significant impact on the total allowance for loan and lease losses at September 30, 2013. | |
The allowance is increased by provision expense and decreased by actual 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 Loans | ' |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy | ' |
Covered OREO is comprised of properties acquired by the Company through the loan foreclosure or repossession process, or other resolution activities that result in partial or total satisfaction of problem covered loans. These properties remain subject to loss sharing agreements whereby the FDIC reimburses First Financial for the majority of any losses incurred. The acquired properties are recorded at the lower of cost or fair value upon acquisition. Losses arising at the time of acquisition of such properties are charged against the allowance for loan and lease losses. Subsequent write-downs in the carrying value of covered OREO properties are expensed as incurred. Estimated reimbursements due from the FDIC under loss sharing agreements related to any losses upon acquisition or subsequent write-downs in the carrying value of covered OREO are recorded as noninterest income and an increase to the FDIC indemnification asset in the same period. Improvements to the properties may be capitalized if the improvements contribute to the overall value of the property, but may not be capitalized in excess of the net realizable value of the property. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy | ' |
First Financial performs periodic valuation procedures to re-estimate the expected cash flows on covered loans accounted for under FASB ASC Topic 310-30 and compare the present value of expected cash flows to the carrying value of the loans at the pool level. In order to estimate expected cash flows, First Financial specifically reviews a sample of these covered loans to assist in the determination of appropriate probability of default and loss given default assumptions to be applied to the remainder of the portfolio. The estimate of expected cash flows may also be adjusted for management's estimate of probable losses on specific loan types dependent upon trends in observable market and industry data, such as prepayment speeds and collateral values. Additionally, during the second quarter of 2013, the Company implemented certain enhancements to its valuation methodology and the estimation of impairment to place greater emphasis on changes in total expected cash flows and less emphasis on changes in the net present value of expected cash flows. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. | |
Covered Loans | Loans Accounted for Under FASB ASC Topic 310-30 | ' |
Loans and Leases Receivable, Nonperforming Loan and Lease, Policy | ' |
Covered 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 covered loan loss provision or prospective yield adjustments. | |
Covered Loans | Loans Excluded from FASB ASC Topic 310-30 | ' |
Loans and Leases Receivable, Nonperforming Loan and Lease, Policy | ' |
Similar to uncovered loans, covered loans accounted for outside FASB ASC Topic 310-30 are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful or when principal or interest payments are ninety days or more past due. Generally, these loans are classified as nonaccrual due to the continued failure to adhere to contractual payment terms by the borrower coupled with other pertinent factors, such as insufficient collateral value. The accrual of interest income is discontinued and previously accrued, but unpaid interest is reversed when a loan is classified as nonaccrual. Any payments received while a loan is classified as nonaccrual are applied as a reduction to the carrying value of the loan. A loan may be reclassified as accrual if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. | |
Fair Value Hedges | ' |
Derivatives, Methods of Accounting, Hedging Derivatives | ' |
Fair Value Hedges. First Financial utilizes interest rate swaps designated as fair value hedges as a means to offer commercial borrowers products that meet their needs, but are also designed to achieve First Financial’s desired interest rate risk profile. First Financial accomplishes this by entering into swap agreements with commercial borrowers and simultaneously entering into offsetting swap agreements, with substantially matching terms, with institutional counterparties. These interest rate swap agreements generally involve the receipt by First Financial of floating rate amounts from counterparties in exchange for payments to these counterparties by First Financial of fixed rate amounts received from commercial borrowers over the life of the agreements. These interest rate swap agreements do not involve an exchange of the underlying principal or notional amount. This results in First Financial’s loan customers receiving fixed rate funding, while providing First Financial with a floating rate asset. First Financial's matched interest rate swaps economically hedge offsetting "receive fixed" and "pay fixed" exposures, but do not qualify for hedge accounting. | |
The net interest receivable or payable on matched interest rate swaps is accrued and recognized as an adjustment to the interest income of the hedged item. The fair value of matched interest rate swaps is included within Accrued interest and other assets and Accrued interest and other liabilities on the Consolidated Balance Sheets. | |
For the unmatched, pay fixed interest rate swaps, which qualify for hedge accounting, the corresponding fair-value adjustment is included on the Consolidated Balance Sheets in the carrying value of the hedged item. The net interest receivable or payable on unmatched interest rate swaps is accrued and recognized as an adjustment to the interest income of the hedged item. Gains and losses from derivatives not considered effective in hedging the change in fair value of the hedged item, if any, are recognized in income immediately. | |
Cash Flow Hedges | ' |
Derivatives, Methods of Accounting, Hedging Derivatives | ' |
Cash Flow Hedges. First Financial utilizes interest rate swaps designated as cash flow hedges to manage the variability of cash flows, primarily net interest income, attributable to changes in interest rates. The net interest receivable or payable on an interest rate swap designated as a cash flow hedge is accrued and recognized as an adjustment to interest income or interest expense while the fair value is included within Accrued interest and other assets or Accrued interest and other liabilities on the Consolidated Balance Sheets. Changes in the fair value of interest rate swaps designated as cash flow hedges are included in accumulated other comprehensive income (loss). Gains and losses from derivatives not considered effective in hedging the cash flows related to the hedged items, if any, are recognized in income immediately. |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of Held-To-Maturity and Available-For-Sale Investment Securities | ' | ||||||||||||||||||||||||||||||||
The following is a summary of held-to-maturity and available-for-sale investment securities as of September 30, 2013: | |||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Market | Amortized | Unrealized | Unrealized | Market | |||||||||||||||||||||||||
Cost | Gain | Loss | Value | Cost | Gain | Loss | Value | ||||||||||||||||||||||||||
U.S. Treasuries | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 97 | $ | 0 | $ | (4 | ) | $ | 93 | ||||||||||||||||
Securities of U.S. government agencies and corporations | 19,462 | 0 | (864 | ) | 18,598 | 10,266 | 0 | (142 | ) | 10,124 | |||||||||||||||||||||||
Mortgage-backed securities | 637,170 | 768 | (6,561 | ) | 631,377 | 652,808 | 6,093 | (20,818 | ) | 638,083 | |||||||||||||||||||||||
Obligations of state and other political subdivisions | 12,461 | 157 | (908 | ) | 11,710 | 34,005 | 31 | (2,294 | ) | 31,742 | |||||||||||||||||||||||
Asset-backed securities | 0 | 0 | 0 | 0 | 67,816 | 0 | (359 | ) | 67,457 | ||||||||||||||||||||||||
Other securities | 0 | 0 | 0 | 0 | 110,936 | 126 | (3,814 | ) | 107,248 | ||||||||||||||||||||||||
Total | $ | 669,093 | $ | 925 | $ | (8,333 | ) | $ | 661,685 | $ | 875,928 | $ | 6,250 | $ | (27,431 | ) | $ | 854,747 | |||||||||||||||
The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2012: | |||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Market | Amortized | Unrealized | Unrealized | Market | |||||||||||||||||||||||||
Cost | Gain | Loss | Value | Cost | Gain | Loss | Value | ||||||||||||||||||||||||||
Securities of U.S. government agencies and corporations | $ | 20,512 | $ | 679 | $ | 0 | $ | 21,191 | $ | 15,562 | $ | 333 | $ | 0 | $ | 15,895 | |||||||||||||||||
Mortgage-backed securities | 740,891 | 8,077 | (1,290 | ) | 747,678 | 854,150 | 14,564 | (1,485 | ) | 867,229 | |||||||||||||||||||||||
Obligations of state and other political subdivisions | 9,352 | 265 | (12 | ) | 9,605 | 35,913 | 169 | (84 | ) | 35,998 | |||||||||||||||||||||||
Asset-backed securities | 0 | 0 | 0 | 0 | 57,000 | 90 | (1 | ) | 57,089 | ||||||||||||||||||||||||
Other securities | 0 | 0 | 0 | 0 | 54,479 | 1,569 | (163 | ) | 55,885 | ||||||||||||||||||||||||
Total | $ | 770,755 | $ | 9,021 | $ | (1,302 | ) | $ | 778,474 | $ | 1,017,104 | $ | 16,725 | $ | (1,733 | ) | $ | 1,032,096 | |||||||||||||||
Summary of Investment Securities by Estimated Maturity | ' | ||||||||||||||||||||||||||||||||
The following table provides a summary of investment securities by weighted average life as of September 30, 2013. Estimated lives on certain investment securities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Market | Amortized | Market | |||||||||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||||||||||
Due in one year or less | $ | 215 | $ | 218 | $ | 5,009 | $ | 5,152 | |||||||||||||||||||||||||
Due after one year through five years | 409,559 | 407,787 | 250,089 | 251,177 | |||||||||||||||||||||||||||||
Due after five years through ten years | 258,526 | 252,762 | 361,949 | 351,776 | |||||||||||||||||||||||||||||
Due after ten years | 793 | 918 | 258,881 | 246,642 | |||||||||||||||||||||||||||||
Total | $ | 669,093 | $ | 661,685 | $ | 875,928 | $ | 854,747 | |||||||||||||||||||||||||
Age of Gross Unrealized Losses and Associated Fair Value by Investment Category | ' | ||||||||||||||||||||||||||||||||
The following tables present the age of gross unrealized losses and associated fair value by investment category: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||
Securities of U.S. government agencies and corporations | $ | 28,806 | $ | (756 | ) | $ | 0 | $ | 0 | $ | 28,806 | $ | (756 | ) | |||||||||||||||||||
Mortgage-backed securities | 807,599 | (24,767 | ) | 41,679 | (261 | ) | 849,278 | (25,028 | ) | ||||||||||||||||||||||||
Obligations of state and other political subdivisions | 64,895 | (4,357 | ) | 0 | 0 | 64,895 | (4,357 | ) | |||||||||||||||||||||||||
Asset-backed securities | 59,003 | (359 | ) | 0 | 0 | 59,003 | (359 | ) | |||||||||||||||||||||||||
Other securities | 72,326 | (2,531 | ) | 1,244 | (129 | ) | 73,570 | (2,660 | ) | ||||||||||||||||||||||||
Total | $ | 1,032,629 | $ | (32,770 | ) | $ | 42,923 | $ | (390 | ) | $ | 1,075,552 | $ | (33,160 | ) | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||||||
Mortgage-backed securities | $ | 240,641 | $ | (1,635 | ) | $ | 25,513 | $ | (405 | ) | $ | 266,154 | $ | (2,040 | ) | ||||||||||||||||||
Obligations of state and other political subdivisions | 21,341 | (96 | ) | 0 | 0 | 21,341 | (96 | ) | |||||||||||||||||||||||||
Asset-backed securities | 9,999 | (1 | ) | 0 | 0 | 9,999 | (1 | ) | |||||||||||||||||||||||||
Other securities | 8,454 | (163 | ) | 0 | 0 | 8,454 | (163 | ) | |||||||||||||||||||||||||
Total | $ | 280,435 | $ | (1,895 | ) | $ | 25,513 | $ | (405 | ) | $ | 305,948 | $ | (2,300 | ) | ||||||||||||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Summary of Derivative Financial Instruments by Nature of Underlying Asset or Liability | ' | ||||||||||||||||||||||||||
The following table summarizes the notional values of derivative financial instruments utilized by First Financial by the nature of the underlying asset or liability: | |||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||
Instruments associated with loans | $ | 916,011 | $ | 935,493 | |||||||||||||||||||||||
Summary of Derivative Financial Instruments and Balances | ' | ||||||||||||||||||||||||||
The following table summarizes the derivative financial instruments utilized by First Financial and their balances: | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Estimated fair value | Estimated fair value | ||||||||||||||||||||||||||
(Dollars in thousands) | Balance Sheet Classification | Notional | Gain | Loss | Notional | Gain | Loss | ||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||
Pay fixed interest rate swaps with counterparty | Accrued interest and other liabilities | $ | 10,431 | $ | 0 | $ | (999 | ) | $ | 12,739 | $ | 0 | $ | (1,445 | ) | ||||||||||||
Matched interest rate swaps with borrower | Accrued interest and other assets | 452,790 | 13,798 | (1,050 | ) | 461,377 | 24,135 | 0 | |||||||||||||||||||
Matched interest rate swaps with counterparty | Accrued interest and other liabilities | 452,790 | 1,050 | (13,995 | ) | 461,377 | 0 | (24,978 | ) | ||||||||||||||||||
Total | $ | 916,011 | $ | 14,848 | $ | (16,044 | ) | $ | 935,493 | $ | 24,135 | $ | (26,423 | ) | |||||||||||||
Disclosure by Type of Financial Instrument [Table Text Block] | ' | ||||||||||||||||||||||||||
The following table discloses the gross and net amounts of liabilities recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in thousands) | Gross amounts of recognized liabilities | Gross amounts offset in the Consolidated Balance Sheets | Net amounts of liabilities presented in the Consolidated Balance Sheets | Gross amounts of recognized liabilities | Gross amounts offset in the Consolidated Balance Sheets | Net amounts of liabilities presented in the Consolidated Balance Sheets | |||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||
Pay fixed interest rate swaps with counterparty | $ | 999 | $ | (393 | ) | $ | 606 | $ | 1,445 | $ | (669 | ) | $ | 776 | |||||||||||||
Matched interest rate swaps with counterparty | 15,045 | (12,103 | ) | 2,942 | 24,978 | (23,057 | ) | 1,921 | |||||||||||||||||||
Total | $ | 16,044 | $ | (12,496 | ) | $ | 3,548 | $ | 26,423 | $ | (23,726 | ) | $ | 2,697 | |||||||||||||
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 September 30, 2013: | |||||||||||||||||||||||||||
Weighted-average rate | |||||||||||||||||||||||||||
(Dollars in thousands) | Notional | Average | Fair | Receive | Pay | ||||||||||||||||||||||
amount | maturity | value | |||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||
Asset conversion swaps | |||||||||||||||||||||||||||
Pay fixed interest rate swaps with counterparty | $ | 10,431 | 3 | $ | (999 | ) | 2.21 | % | 6.85 | % | |||||||||||||||||
Receive fixed, matched interest rate swaps with borrower | 452,790 | 4.1 | 12,748 | 4.88 | % | 2.94 | % | ||||||||||||||||||||
Pay fixed, matched interest rate swaps with counterparty | 452,790 | 4.1 | (12,945 | ) | 2.94 | % | 4.88 | % | |||||||||||||||||||
Total asset conversion swaps | $ | 916,011 | 4.1 | $ | (1,196 | ) | 3.89 | % | 3.95 | % | |||||||||||||||||
Location and Amounts Recognized for Fair Value Hedges | ' | ||||||||||||||||||||||||||
The following table details the location and amounts recognized for fair value hedges: | |||||||||||||||||||||||||||
Decrease to Interest income | |||||||||||||||||||||||||||
(Dollars in thousands) | Three months ended | Nine months ended | |||||||||||||||||||||||||
Derivatives in fair value hedging relationships | Location of change in fair value | September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||
Loans | Interest income - loans | $ | (123 | ) | $ | (167 | ) | $ | (393 | ) | $ | (555 | ) | ||||||||||||||
Total | $ | (123 | ) | $ | (167 | ) | $ | (393 | ) | $ | (555 | ) |
BORROWINGS_Tables
BORROWINGS (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||
Summary of Long-term Debt [Table Text Block] | ' | ||||||||||||||
The following is a summary of long-term debt: | |||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||
(Dollars in thousands) | Amount | Average Rate | Amount | Average Rate | |||||||||||
Federal Home Loan Bank | $ | 7,813 | 3.74 | % | $ | 9,427 | 3.74 | % | |||||||
National Market Repurchase Agreement | 52,500 | 3.49 | % | 65,000 | 3.5 | % | |||||||||
Capital loan with municipality | 775 | 0 | % | 775 | 0 | % | |||||||||
Total long-term debt | $ | 61,088 | 3.48 | % | $ | 75,202 | 3.49 | % | |||||||
LOANS_excluding_covered_loans_
LOANS (excluding covered loans) (Tables) (Non Covered Loans) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Non Covered Loans | ' | ||||||||||||||||||||||||||||
Commercial and Consumer Credit Exposure by Risk Attribute | ' | ||||||||||||||||||||||||||||
Commercial and consumer credit exposure by risk attribute was as follows: | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | |||||||||||||||||||||||||
Pass | $ | 914,021 | $ | 86,942 | $ | 1,391,039 | $ | 2,392,002 | |||||||||||||||||||||
Special Mention | 29,061 | 225 | 29,786 | 59,072 | |||||||||||||||||||||||||
Substandard | 16,934 | 2,922 | 73,144 | 93,000 | |||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Total | $ | 960,016 | $ | 90,089 | $ | 1,493,969 | $ | 2,544,074 | |||||||||||||||||||||
(Dollars in thousands) | Real Estate | Installment | Home Equity | Other | Total | ||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Performing | $ | 343,484 | $ | 48,852 | $ | 370,968 | $ | 110,814 | $ | 874,118 | |||||||||||||||||||
Nonperforming | 9,346 | 421 | 2,871 | 86 | 12,724 | ||||||||||||||||||||||||
Total | $ | 352,830 | $ | 49,273 | $ | 373,839 | $ | 110,900 | $ | 886,842 | |||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | |||||||||||||||||||||||||
Pass | $ | 803,351 | $ | 64,866 | $ | 1,307,370 | $ | 2,175,587 | |||||||||||||||||||||
Special Mention | 29,663 | 65 | 38,516 | 68,244 | |||||||||||||||||||||||||
Substandard | 28,019 | 8,586 | 71,122 | 107,727 | |||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Total | $ | 861,033 | $ | 73,517 | $ | 1,417,008 | $ | 2,351,558 | |||||||||||||||||||||
(Dollars in thousands) | Real Estate | Installment | Home Equity | Other | Total | ||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Performing | $ | 310,341 | $ | 56,358 | $ | 364,248 | $ | 84,490 | $ | 815,437 | |||||||||||||||||||
Nonperforming | 7,869 | 452 | 3,252 | 496 | 12,069 | ||||||||||||||||||||||||
Total | $ | 318,210 | $ | 56,810 | $ | 367,500 | $ | 84,986 | $ | 827,506 | |||||||||||||||||||
Loan Delinquency, including Nonaccrual Loans | ' | ||||||||||||||||||||||||||||
Loan delinquency, including loans classified as nonaccrual, was as follows: | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | 30 – 59 | 60 – 89 | > 90 days | Total | Current | Total | > 90 days | ||||||||||||||||||||||
days | days | past due | past | past due | |||||||||||||||||||||||||
past due | past due | due | and | ||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Commercial | $ | 1,018 | $ | 678 | $ | 9,294 | $ | 10,990 | $ | 949,026 | $ | 960,016 | $ | 0 | |||||||||||||||
Real estate - construction | 23 | 0 | 1,098 | 1,121 | 88,968 | 90,089 | 0 | ||||||||||||||||||||||
Real estate - commercial | 8,280 | 2,747 | 23,569 | 34,596 | 1,459,373 | 1,493,969 | 0 | ||||||||||||||||||||||
Real estate - residential | 1,705 | 1,230 | 6,484 | 9,419 | 343,411 | 352,830 | 0 | ||||||||||||||||||||||
Installment | 389 | 38 | 371 | 798 | 48,475 | 49,273 | 0 | ||||||||||||||||||||||
Home equity | 735 | 442 | 1,525 | 2,702 | 371,137 | 373,839 | 0 | ||||||||||||||||||||||
Other | 424 | 111 | 351 | 886 | 110,014 | 110,900 | 265 | ||||||||||||||||||||||
Total | $ | 12,574 | $ | 5,246 | $ | 42,692 | $ | 60,512 | $ | 3,370,404 | $ | 3,430,916 | $ | 265 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 | 60 - 89 | > 90 days | Total | Current | Total | > 90 days | ||||||||||||||||||||||
days | days | past due | past | past due and accruing | |||||||||||||||||||||||||
past due | past due | due | |||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Commercial | $ | 1,770 | $ | 832 | $ | 4,197 | $ | 6,799 | $ | 854,234 | $ | 861,033 | $ | 0 | |||||||||||||||
Real estate - construction | 0 | 0 | 892 | 892 | 72,625 | 73,517 | 0 | ||||||||||||||||||||||
Real estate - commercial | 2,549 | 1,931 | 27,966 | 32,446 | 1,384,562 | 1,417,008 | 0 | ||||||||||||||||||||||
Real estate - residential | 6,071 | 1,463 | 6,113 | 13,647 | 304,563 | 318,210 | 0 | ||||||||||||||||||||||
Installment | 280 | 148 | 344 | 772 | 56,038 | 56,810 | 0 | ||||||||||||||||||||||
Home equity | 1,311 | 869 | 1,440 | 3,620 | 363,880 | 367,500 | 0 | ||||||||||||||||||||||
Other | 386 | 168 | 708 | 1,262 | 83,724 | 84,986 | 212 | ||||||||||||||||||||||
Total | $ | 12,367 | $ | 5,411 | $ | 41,660 | $ | 59,438 | $ | 3,119,626 | $ | 3,179,064 | $ | 212 | |||||||||||||||
Loans Restructured During Period | ' | ||||||||||||||||||||||||||||
The following tables provide information on loan modifications classified as TDRs during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of loans | Pre-modification loan balance | Period end balance | Number of loans | Pre-modification loan balance | Period end balance | |||||||||||||||||||||||
Commercial | 4 | $ | 494 | $ | 490 | 6 | $ | 3,787 | $ | 4,027 | |||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Real estate - commercial | 10 | 2,502 | 2,493 | 8 | 5,105 | 5,077 | |||||||||||||||||||||||
Real estate - residential | 3 | 387 | 367 | 0 | 0 | 0 | |||||||||||||||||||||||
Installment | 3 | 34 | 33 | 0 | 0 | 0 | |||||||||||||||||||||||
Home equity | 5 | 294 | 216 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | 25 | $ | 3,711 | $ | 3,599 | 14 | $ | 8,892 | $ | 9,104 | |||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of loans | Pre-modification loan balance | Period end balance | Number of loans | Pre-modification loan balance | Period end balance | |||||||||||||||||||||||
Commercial | 14 | $ | 8,233 | $ | 6,105 | 16 | $ | 8,358 | $ | 8,589 | |||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Real estate - commercial | 17 | 4,752 | 4,719 | 22 | 9,854 | 9,795 | |||||||||||||||||||||||
Real estate - residential | 33 | 2,356 | 2,178 | 2 | 164 | 166 | |||||||||||||||||||||||
Installment | 14 | 188 | 115 | 0 | 0 | 0 | |||||||||||||||||||||||
Home equity | 35 | 1,176 | 887 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | 113 | $ | 16,705 | $ | 14,004 | 40 | $ | 18,376 | $ | 18,550 | |||||||||||||||||||
Loans Restructured, Modifications | ' | ||||||||||||||||||||||||||||
The following table provides information on how TDRs were modified during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, (2) | September 30, (2) | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Extended maturities | $ | 2,179 | $ | 6,144 | $ | 8,848 | $ | 13,404 | |||||||||||||||||||||
Adjusted interest rates | 0 | 0 | 520 | 166 | |||||||||||||||||||||||||
Combination of rate and maturity changes | 613 | 0 | 850 | 563 | |||||||||||||||||||||||||
Forbearance | 0 | 2,565 | 0 | 3,801 | |||||||||||||||||||||||||
Other (1) | 807 | 395 | 3,786 | 616 | |||||||||||||||||||||||||
Total | $ | 3,599 | $ | 9,104 | $ | 14,004 | $ | 18,550 | |||||||||||||||||||||
(1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions | |||||||||||||||||||||||||||||
(2) Balances are as of period end | |||||||||||||||||||||||||||||
Loan Restructuring, Loans with a Payment Default Within 12 Months of Loan Modification | ' | ||||||||||||||||||||||||||||
The following table provides information on TDRs for which there was a payment default during the period that occurred within twelve months of the loan modification: | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Period End Balance | Number of Loans | Period End Balance | |||||||||||||||||||||||||
Commercial | 4 | $ | 4,882 | 2 | $ | 1,133 | |||||||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Real estate - commercial | 2 | 63 | 0 | 0 | |||||||||||||||||||||||||
Real estate - residential | 3 | 185 | 0 | 0 | |||||||||||||||||||||||||
Installment | 4 | 26 | 0 | 0 | |||||||||||||||||||||||||
Home equity | 5 | 64 | 0 | 0 | |||||||||||||||||||||||||
Total | 18 | $ | 5,220 | 2 | $ | 1,133 | |||||||||||||||||||||||
Nonaccrual, Restructured and Impaired Loans | ' | ||||||||||||||||||||||||||||
Loans classified as nonaccrual and loans modified as TDRs are considered impaired. The following table provides information on nonaccrual loans, TDRs and total impaired loans. | |||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Impaired loans | |||||||||||||||||||||||||||||
Nonaccrual loans (1) | |||||||||||||||||||||||||||||
Commercial | $ | 8,554 | $ | 15,893 | |||||||||||||||||||||||||
Real estate-construction | 1,099 | 2,102 | |||||||||||||||||||||||||||
Real estate-commercial | 35,549 | 34,977 | |||||||||||||||||||||||||||
Real estate-residential | 9,346 | 7,869 | |||||||||||||||||||||||||||
Installment | 421 | 452 | |||||||||||||||||||||||||||
Home equity | 2,871 | 3,252 | |||||||||||||||||||||||||||
Other | 86 | 496 | |||||||||||||||||||||||||||
Nonaccrual loans (1) | 57,926 | 65,041 | |||||||||||||||||||||||||||
Accruing troubled debt restructurings | 16,278 | 10,856 | |||||||||||||||||||||||||||
Total impaired loans | $ | 74,204 | $ | 75,897 | |||||||||||||||||||||||||
(1) Nonaccrual loans include nonaccrual TDRs of $13.0 million and $14.1 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Interest income effect on impaired loans | |||||||||||||||||||||||||||||
Gross amount of interest that would have been recorded under original terms | $ | 1,142 | $ | 1,145 | $ | 3,399 | $ | 3,734 | |||||||||||||||||||||
Interest included in income | |||||||||||||||||||||||||||||
Nonaccrual loans | 130 | 158 | 472 | 586 | |||||||||||||||||||||||||
Troubled debt restructurings | 115 | 95 | 316 | 247 | |||||||||||||||||||||||||
Total interest included in income | 245 | 253 | 788 | 833 | |||||||||||||||||||||||||
Net impact on interest income | $ | 897 | $ | 892 | $ | 2,611 | $ | 2,901 | |||||||||||||||||||||
Commitments outstanding to borrowers with nonaccrual loans | $ | 0 | $ | 2,977 | |||||||||||||||||||||||||
Investment in Impaired Loans | ' | ||||||||||||||||||||||||||||
First Financial's investment in impaired loans was as follows: | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current Balance | Contractual | Related | Average | YTD Interest | Quarterly Interest | |||||||||||||||||||||||
Principal | Allowance | Current | Income | Income | |||||||||||||||||||||||||
Balance | Balance | Recognized | Recognized | ||||||||||||||||||||||||||
Loans with no related allowance recorded | |||||||||||||||||||||||||||||
Commercial | $ | 6,420 | $ | 8,480 | $ | 0 | $ | 12,087 | $ | 141 | $ | 17 | |||||||||||||||||
Real estate - construction | 1,099 | 1,671 | 0 | 693 | 0 | 0 | |||||||||||||||||||||||
Real estate - commercial | 16,583 | 20,727 | 0 | 17,615 | 317 | 108 | |||||||||||||||||||||||
Real estate - residential | 11,042 | 12,866 | 0 | 10,208 | 111 | 39 | |||||||||||||||||||||||
Installment | 489 | 531 | 0 | 418 | 4 | 1 | |||||||||||||||||||||||
Home equity | 3,100 | 3,807 | 0 | 3,129 | 32 | 11 | |||||||||||||||||||||||
Other | 86 | 86 | 0 | 185 | 0 | 0 | |||||||||||||||||||||||
Loans with an allowance recorded | |||||||||||||||||||||||||||||
Commercial | 6,134 | 7,500 | 1,645 | 4,556 | 58 | 8 | |||||||||||||||||||||||
Real estate - construction | 0 | 0 | 0 | 907 | 7 | 0 | |||||||||||||||||||||||
Real estate - commercial | 27,123 | 31,628 | 6,371 | 23,463 | 89 | 50 | |||||||||||||||||||||||
Real estate - residential | 2,027 | 2,082 | 348 | 1,992 | 28 | 10 | |||||||||||||||||||||||
Installment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Home equity | 101 | 101 | 2 | 101 | 1 | 1 | |||||||||||||||||||||||
Other | 0 | 0 | 0 | 209 | 0 | 0 | |||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial | 12,554 | 15,980 | 1,645 | 16,643 | 199 | 25 | |||||||||||||||||||||||
Real estate - construction | 1,099 | 1,671 | 0 | 1,600 | 7 | 0 | |||||||||||||||||||||||
Real estate - commercial | 43,706 | 52,355 | 6,371 | 41,078 | 406 | 158 | |||||||||||||||||||||||
Real estate - residential | 13,069 | 14,948 | 348 | 12,200 | 139 | 49 | |||||||||||||||||||||||
Installment | 489 | 531 | 0 | 418 | 4 | 1 | |||||||||||||||||||||||
Home equity | 3,201 | 3,908 | 2 | 3,230 | 33 | 12 | |||||||||||||||||||||||
Other | 86 | 86 | 0 | 394 | 0 | 0 | |||||||||||||||||||||||
Total | $ | 74,204 | $ | 89,479 | $ | 8,366 | $ | 75,563 | $ | 788 | $ | 245 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | Contractual | Related | Average | Interest | ||||||||||||||||||||||||
Balance | Principal | Allowance | Current | Income | |||||||||||||||||||||||||
Balance | Balance | Recognized | |||||||||||||||||||||||||||
Loans with no related allowance recorded | |||||||||||||||||||||||||||||
Commercial | $ | 14,961 | $ | 17,269 | $ | 0 | $ | 9,337 | $ | 215 | |||||||||||||||||||
Real estate - construction | 462 | 672 | 0 | 3,857 | 15 | ||||||||||||||||||||||||
Real estate - commercial | 15,782 | 21,578 | 0 | 15,554 | 277 | ||||||||||||||||||||||||
Real estate - residential | 9,222 | 10,817 | 0 | 8,463 | 81 | ||||||||||||||||||||||||
Installment | 452 | 556 | 0 | 452 | 2 | ||||||||||||||||||||||||
Home equity | 3,251 | 4,132 | 0 | 2,423 | 19 | ||||||||||||||||||||||||
Other | 326 | 326 | 0 | 65 | 0 | ||||||||||||||||||||||||
Loans with an allowance recorded | |||||||||||||||||||||||||||||
Commercial | 3,560 | 4,252 | 1,151 | 5,350 | 161 | ||||||||||||||||||||||||
Real estate - construction | 1,640 | 2,168 | 838 | 5,033 | 81 | ||||||||||||||||||||||||
Real estate - commercial | 24,014 | 25,684 | 7,155 | 25,499 | 235 | ||||||||||||||||||||||||
Real estate - residential | 1,956 | 2,003 | 290 | 2,278 | 38 | ||||||||||||||||||||||||
Installment | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Home equity | 101 | 101 | 2 | 81 | 1 | ||||||||||||||||||||||||
Other | 170 | 170 | 92 | 34 | 0 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial | 18,521 | 21,521 | 1,151 | 14,687 | 376 | ||||||||||||||||||||||||
Real estate - construction | 2,102 | 2,840 | 838 | 8,890 | 96 | ||||||||||||||||||||||||
Real estate - commercial | 39,796 | 47,262 | 7,155 | 41,053 | 512 | ||||||||||||||||||||||||
Real estate - residential | 11,178 | 12,820 | 290 | 10,741 | 119 | ||||||||||||||||||||||||
Installment | 452 | 556 | 0 | 452 | 2 | ||||||||||||||||||||||||
Home equity | 3,352 | 4,233 | 2 | 2,504 | 20 | ||||||||||||||||||||||||
Other | 496 | 496 | 92 | 99 | 0 | ||||||||||||||||||||||||
Total | $ | 75,897 | $ | 89,728 | $ | 9,528 | $ | 78,426 | $ | 1,125 | |||||||||||||||||||
Changes in Other Real Estate Owned | ' | ||||||||||||||||||||||||||||
Changes in OREO were as follows: | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 11,798 | $ | 15,688 | $ | 12,526 | $ | 11,317 | |||||||||||||||||||||
Additions | |||||||||||||||||||||||||||||
Commercial | 608 | 539 | 2,924 | 5,888 | |||||||||||||||||||||||||
Residential | 265 | 406 | 645 | 2,320 | |||||||||||||||||||||||||
Total additions | 873 | 945 | 3,569 | 8,208 | |||||||||||||||||||||||||
Disposals | |||||||||||||||||||||||||||||
Commercial | 500 | 1,209 | 2,382 | 2,221 | |||||||||||||||||||||||||
Residential | 154 | 413 | 805 | 1,025 | |||||||||||||||||||||||||
Total disposals | 654 | 1,622 | 3,187 | 3,246 | |||||||||||||||||||||||||
Write-downs | |||||||||||||||||||||||||||||
Commercial | 71 | 1,041 | 632 | 2,181 | |||||||||||||||||||||||||
Residential | 142 | 58 | 472 | 186 | |||||||||||||||||||||||||
Total write-downs | 213 | 1,099 | 1,104 | 2,367 | |||||||||||||||||||||||||
Balance at end of period | $ | 11,804 | $ | 13,912 | $ | 11,804 | $ | 13,912 | |||||||||||||||||||||
LOANS_covered_Tables
LOANS (covered) (Tables) (Covered Loans) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Covered Loans | ' | |||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |||||||||||||||||||||||||||
Carrying Value of Purchased Impaired and Nonimpaired Loans | ' | |||||||||||||||||||||||||||
The following table reflects the carrying value of all covered purchased impaired and nonimpaired covered loans: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Total | Loans | Loans | Total | ||||||||||||||||||||||
accounted | excluded | purchased | accounted | excluded | purchased | |||||||||||||||||||||||
for under | from FASB | loans | for under | from FASB | loans | |||||||||||||||||||||||
FASB ASC | ASC Topic | FASB ASC | ASC Topic | |||||||||||||||||||||||||
Topic 310-30 | 310-30 | Topic 310-30 | 310-30 | |||||||||||||||||||||||||
Commercial | $ | 51,077 | $ | 1,199 | $ | 52,276 | $ | 94,775 | $ | 7,351 | $ | 102,126 | ||||||||||||||||
Real estate - construction | 8,692 | 0 | 8,692 | 10,631 | 0 | 10,631 | ||||||||||||||||||||||
Real estate - commercial | 306,345 | 6,453 | 312,798 | 458,066 | 7,489 | 465,555 | ||||||||||||||||||||||
Real estate - residential | 84,418 | 0 | 84,418 | 100,694 | 0 | 100,694 | ||||||||||||||||||||||
Installment | 5,552 | 583 | 6,135 | 7,911 | 763 | 8,674 | ||||||||||||||||||||||
Home equity | 1,009 | 50,683 | 51,692 | 2,080 | 55,378 | 57,458 | ||||||||||||||||||||||
Other covered loans | 0 | 2,513 | 2,513 | 0 | 2,978 | 2,978 | ||||||||||||||||||||||
Total covered loans | $ | 457,093 | $ | 61,431 | $ | 518,524 | $ | 674,157 | $ | 73,959 | $ | 748,116 | ||||||||||||||||
Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans | ' | |||||||||||||||||||||||||||
Changes in the carrying amount of accretable difference for covered purchased impaired loans were as follows: | ||||||||||||||||||||||||||||
Three Months Ended | Nine months ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 173,920 | $ | 283,296 | $ | 224,694 | $ | 344,410 | ||||||||||||||||||||
Reclassification (to)/from nonaccretable difference | (4,979 | ) | 2,338 | (5,687 | ) | 25,780 | ||||||||||||||||||||||
Accretion | (13,772 | ) | (21,730 | ) | (46,971 | ) | (71,674 | ) | ||||||||||||||||||||
Other net activity (1) | (8,347 | ) | (11,749 | ) | (25,214 | ) | (46,361 | ) | ||||||||||||||||||||
Balance at end of period | $ | 146,822 | $ | 252,155 | $ | 146,822 | $ | 252,155 | ||||||||||||||||||||
(1) Includes the impact of loan repayments and charge-offs | ||||||||||||||||||||||||||||
Commercial and Consumer Credit Exposure by Risk Attribute | ' | |||||||||||||||||||||||||||
Covered commercial and consumer credit exposure by risk attribute was as follows: | ||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | ||||||||||||||||||||||||
Pass | $ | 27,580 | $ | 1,714 | $ | 175,085 | $ | 204,379 | ||||||||||||||||||||
Special Mention | 7,933 | 0 | 41,478 | 49,411 | ||||||||||||||||||||||||
Substandard | 15,973 | 6,978 | 96,235 | 119,186 | ||||||||||||||||||||||||
Doubtful | 790 | 0 | 0 | 790 | ||||||||||||||||||||||||
Total | $ | 52,276 | $ | 8,692 | $ | 312,798 | $ | 373,766 | ||||||||||||||||||||
(Dollars in thousands) | Real estate | Installment | Home equity | Other | Total | |||||||||||||||||||||||
residential | ||||||||||||||||||||||||||||
Performing | $ | 84,418 | $ | 6,135 | $ | 49,680 | $ | 2,507 | $ | 142,740 | ||||||||||||||||||
Nonperforming | 0 | 0 | 2,012 | 6 | 2,018 | |||||||||||||||||||||||
Total | $ | 84,418 | $ | 6,135 | $ | 51,692 | $ | 2,513 | $ | 144,758 | ||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Total | ||||||||||||||||||||||||
Pass | $ | 48,213 | $ | 2,304 | $ | 213,143 | $ | 263,660 | ||||||||||||||||||||
Special Mention | 16,293 | 7 | 70,894 | 87,194 | ||||||||||||||||||||||||
Substandard | 35,596 | 8,320 | 181,345 | 225,261 | ||||||||||||||||||||||||
Doubtful | 2,024 | 0 | 173 | 2,197 | ||||||||||||||||||||||||
Total | $ | 102,126 | $ | 10,631 | $ | 465,555 | $ | 578,312 | ||||||||||||||||||||
(Dollars in thousands) | Real estate | Installment | Home | Other | Total | |||||||||||||||||||||||
residential | equity | |||||||||||||||||||||||||||
Performing | $ | 100,694 | $ | 8,674 | $ | 53,231 | $ | 2,967 | $ | 165,566 | ||||||||||||||||||
Nonperforming | 0 | 0 | 4,227 | 11 | 4,238 | |||||||||||||||||||||||
Total | $ | 100,694 | $ | 8,674 | $ | 57,458 | $ | 2,978 | $ | 169,804 | ||||||||||||||||||
Loan Delinquency, including Nonaccrual Loans | ' | |||||||||||||||||||||||||||
Covered loan delinquency, excluding loans accounted for under FASB ASC Topic 310-30, was as follows: | ||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 | 60 - 89 | > 90 days | Total | Current | Total | > 90 days | |||||||||||||||||||||
days | days | past due | past | past due and | ||||||||||||||||||||||||
past due | past due | due | accruing | |||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Commercial | $ | 59 | $ | 136 | $ | 379 | $ | 574 | $ | 625 | $ | 1,199 | $ | 0 | ||||||||||||||
Real estate - commercial | 59 | 5 | 1,809 | 1,873 | 4,580 | 6,453 | 0 | |||||||||||||||||||||
Installment | 6 | 0 | 0 | 6 | 577 | 583 | 0 | |||||||||||||||||||||
Home equity | 722 | 459 | 1,052 | 2,233 | 48,450 | 50,683 | 0 | |||||||||||||||||||||
All other | 3 | 0 | 49 | 52 | 2,461 | 2,513 | 43 | |||||||||||||||||||||
Total | $ | 849 | $ | 600 | $ | 3,289 | $ | 4,738 | $ | 56,693 | $ | 61,431 | $ | 43 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 | 60 - 89 | > 90 days | Total | Current | Total | > 90 days | |||||||||||||||||||||
days | days | past due | past | past due and | ||||||||||||||||||||||||
past due | past due | due | accruing | |||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Commercial | $ | 351 | $ | 148 | $ | 3,781 | $ | 4,280 | $ | 3,071 | $ | 7,351 | $ | 0 | ||||||||||||||
Real estate - commercial | 138 | 1,149 | 2,201 | 3,488 | 4,001 | 7,489 | 0 | |||||||||||||||||||||
Installment | 0 | 0 | 0 | 0 | 763 | 763 | 0 | |||||||||||||||||||||
Home equity | 286 | 296 | 3,697 | 4,279 | 51,099 | 55,378 | 0 | |||||||||||||||||||||
All other | 19 | 26 | 42 | 87 | 2,891 | 2,978 | 31 | |||||||||||||||||||||
Total | $ | 794 | $ | 1,619 | $ | 9,721 | $ | 12,134 | $ | 61,825 | $ | 73,959 | $ | 31 | ||||||||||||||
Covered Nonaccrual Loans | ' | |||||||||||||||||||||||||||
Information on covered nonaccrual loans, TDRs and impaired loans was as follows: | ||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||||||||||
Commercial | $ | 438 | $ | 4,498 | ||||||||||||||||||||||||
Real estate-commercial | 1,899 | 2,986 | ||||||||||||||||||||||||||
Installment | 0 | 0 | ||||||||||||||||||||||||||
Home equity | 2,012 | 4,227 | ||||||||||||||||||||||||||
All other | 6 | 11 | ||||||||||||||||||||||||||
Nonaccrual loans | 4,355 | 11,722 | ||||||||||||||||||||||||||
Accruing troubled debt restructurings | 351 | 0 | ||||||||||||||||||||||||||
Total impaired loans | $ | 4,706 | $ | 11,722 | ||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Interest income effect on impaired loans | ||||||||||||||||||||||||||||
Gross amount of interest that would have been recorded under original terms | $ | 81 | $ | 146 | $ | 334 | $ | 504 | ||||||||||||||||||||
Interest included in income | ||||||||||||||||||||||||||||
Nonaccrual loans | 6 | 9 | 20 | 70 | ||||||||||||||||||||||||
Troubled debt restructurings | 3 | 0 | 6 | 0 | ||||||||||||||||||||||||
Total interest included in income | 9 | 9 | 26 | 70 | ||||||||||||||||||||||||
Net impact on interest income | $ | 72 | $ | 137 | $ | 308 | $ | 434 | ||||||||||||||||||||
Investment in Impaired Loans | ' | |||||||||||||||||||||||||||
First Financial’s investment in covered impaired loans, excluding loans accounted for under FASB ASC Topic 310-30, was as follows: | ||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Current Balance | Unpaid | Related | Average | YTD Interest | Quarterly Interest | ||||||||||||||||||||||
Principal | Allowance | Recorded | Income | Income | ||||||||||||||||||||||||
Balance | Investment | Recognized | Recognized | |||||||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||||||
Commercial | $ | 789 | $ | 1,045 | $ | 0 | $ | 2,072 | $ | 11 | $ | 3 | ||||||||||||||||
Real estate - commercial | 1,899 | 3,342 | 0 | 1,895 | 3 | 1 | ||||||||||||||||||||||
Installment | 0 | 0 | 0 | 2 | 0 | 0 | ||||||||||||||||||||||
Home equity | 2,012 | 2,739 | 0 | 2,790 | 12 | 5 | ||||||||||||||||||||||
All other | 6 | 6 | 0 | 10 | 0 | 0 | ||||||||||||||||||||||
Total | $ | 4,706 | $ | 7,132 | $ | 0 | $ | 6,769 | $ | 26 | $ | 9 | ||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Current Balance | Unpaid | Related | Average | Interest | |||||||||||||||||||||||
Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||||||
Commercial | $ | 4,498 | $ | 4,660 | $ | 0 | $ | 4,526 | $ | 62 | ||||||||||||||||||
Real estate - commercial | 2,986 | 3,216 | 0 | 2,153 | 18 | |||||||||||||||||||||||
Home equity | 4,227 | 5,260 | 0 | 2,006 | 5 | |||||||||||||||||||||||
All other | 11 | 11 | 0 | 13 | 0 | |||||||||||||||||||||||
Total | $ | 11,722 | $ | 13,147 | $ | 0 | $ | 8,698 | $ | 85 | ||||||||||||||||||
Changes in Other Real Estate Owned | ' | |||||||||||||||||||||||||||
Changes in covered OREO were as follows: | ||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 22,475 | $ | 25,408 | $ | 28,862 | $ | 44,818 | ||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||
Commercial | 8,572 | 8,578 | 21,063 | 13,677 | ||||||||||||||||||||||||
Residential | 95 | 737 | 472 | 3,423 | ||||||||||||||||||||||||
Total additions | 8,667 | 9,315 | 21,535 | 17,100 | ||||||||||||||||||||||||
Disposals | ||||||||||||||||||||||||||||
Commercial | 2,865 | 5,858 | 19,513 | 24,417 | ||||||||||||||||||||||||
Residential | 76 | 0 | 890 | 2,354 | ||||||||||||||||||||||||
Total disposals | 2,941 | 5,858 | 20,403 | 26,771 | ||||||||||||||||||||||||
Write-downs | ||||||||||||||||||||||||||||
Commercial | 451 | 249 | 2,133 | 5,665 | ||||||||||||||||||||||||
Residential | 0 | 0 | 111 | 866 | ||||||||||||||||||||||||
Total write-downs | 451 | 249 | 2,244 | 6,531 | ||||||||||||||||||||||||
Balance at end of period | $ | 27,750 | $ | 28,616 | $ | 27,750 | $ | 28,616 | ||||||||||||||||||||
ALLOWANCE_FOR_LOAN_AND_LEASE_L1
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ||||||||||||||||||||||||||||||||
Changes in the Allowance for Loan and Lease Losses for the Previous Five Quarters | ' | ||||||||||||||||||||||||||||||||
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) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 47,047 | $ | 50,952 | $ | 47,777 | $ | 52,576 | |||||||||||||||||||||||||
Provision for loan and lease losses | 1,413 | 3,613 | 6,863 | 15,235 | |||||||||||||||||||||||||||||
Loans charged off | (5,111 | ) | (5,804 | ) | (12,515 | ) | (19,764 | ) | |||||||||||||||||||||||||
Recoveries | 2,165 | 431 | 3,389 | 1,145 | |||||||||||||||||||||||||||||
Balance at end of period | $ | 45,514 | $ | 49,192 | $ | 45,514 | $ | 49,192 | |||||||||||||||||||||||||
Allowance for loan and lease losses to total ending loans | 1.33 | % | 1.6 | % | 1.33 | % | 1.6 | % | |||||||||||||||||||||||||
Allowance for Loan and Lease Losses by Classification | ' | ||||||||||||||||||||||||||||||||
Year-to-date changes in the allowance for loan and lease losses by loan category were as follows: | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Residential | Installment | Home Equity | Other | Total | |||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 7,926 | $ | 3,268 | $ | 24,151 | $ | 3,599 | $ | 522 | $ | 5,173 | $ | 3,138 | $ | 47,777 | |||||||||||||||||
Provision for loan and lease losses | 3,675 | (3,166 | ) | 3,691 | 260 | (105 | ) | 1,707 | 801 | 6,863 | |||||||||||||||||||||||
Gross charge-offs | 3,122 | 0 | 5,213 | 798 | 296 | 1,703 | 1,383 | 12,515 | |||||||||||||||||||||||||
Recoveries | 478 | 626 | 1,360 | 107 | 244 | 372 | 202 | 3,389 | |||||||||||||||||||||||||
Total net charge-offs | 2,644 | (626 | ) | 3,853 | 691 | 52 | 1,331 | 1,181 | 9,126 | ||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 8,957 | $ | 728 | $ | 23,989 | $ | 3,168 | $ | 365 | $ | 5,549 | $ | 2,758 | $ | 45,514 | |||||||||||||||||
Ending allowance on loans individually evaluated for impairment | $ | 1,645 | $ | 0 | $ | 6,371 | $ | 348 | $ | 0 | $ | 2 | $ | 0 | $ | 8,366 | |||||||||||||||||
Ending allowance on loans collectively evaluated for impairment | 7,312 | 728 | 17,618 | 2,820 | 365 | 5,547 | 2,758 | 37,148 | |||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 8,957 | $ | 728 | $ | 23,989 | $ | 3,168 | $ | 365 | $ | 5,549 | $ | 2,758 | $ | 45,514 | |||||||||||||||||
Loans - excluding covered loans | |||||||||||||||||||||||||||||||||
Ending balance of loans individually evaluated for impairment | $ | 10,203 | $ | 1,099 | $ | 38,162 | $ | 3,624 | $ | 0 | $ | 515 | $ | 0 | $ | 53,603 | |||||||||||||||||
Ending balance of loans collectively evaluated for impairment | 949,813 | 88,990 | 1,455,807 | 349,206 | 49,273 | 373,324 | 110,900 | 3,377,313 | |||||||||||||||||||||||||
Total loans - excluding covered loans | $ | 960,016 | $ | 90,089 | $ | 1,493,969 | $ | 352,830 | $ | 49,273 | $ | 373,839 | $ | 110,900 | $ | 3,430,916 | |||||||||||||||||
Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Commercial | Residential | Installment | Home Equity | Other | Total | |||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 10,289 | $ | 4,424 | $ | 18,228 | $ | 4,994 | $ | 1,659 | $ | 10,751 | $ | 2,231 | $ | 52,576 | |||||||||||||||||
Provision for loan and lease losses | 1,556 | 1,528 | 16,670 | 346 | (883 | ) | (2,032 | ) | 1,932 | 19,117 | |||||||||||||||||||||||
Gross charge-offs | 4,312 | 2,684 | 11,012 | 1,814 | 577 | 3,661 | 1,252 | 25,312 | |||||||||||||||||||||||||
Recoveries | 393 | 0 | 265 | 73 | 323 | 115 | 227 | 1,396 | |||||||||||||||||||||||||
Total net charge-offs | 3,919 | 2,684 | 10,747 | 1,741 | 254 | 3,546 | 1,025 | 23,916 | |||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 7,926 | $ | 3,268 | $ | 24,151 | $ | 3,599 | $ | 522 | $ | 5,173 | $ | 3,138 | $ | 47,777 | |||||||||||||||||
Ending allowance on loans individually evaluated for impairment | $ | 1,151 | $ | 838 | $ | 7,155 | $ | 290 | $ | 0 | $ | 2 | $ | 92 | $ | 9,528 | |||||||||||||||||
Ending allowance on loans collectively evaluated for impairment | 6,775 | 2,430 | 16,996 | 3,309 | 522 | 5,171 | 3,046 | 38,249 | |||||||||||||||||||||||||
Ending allowance for loan and lease losses | $ | 7,926 | $ | 3,268 | $ | 24,151 | $ | 3,599 | $ | 522 | $ | 5,173 | $ | 3,138 | $ | 47,777 | |||||||||||||||||
Loans - excluding covered loans | |||||||||||||||||||||||||||||||||
Ending balance of loans individually evaluated for impairment | $ | 16,661 | $ | 2,076 | $ | 35,422 | $ | 2,604 | $ | 0 | $ | 101 | $ | 496 | $ | 57,360 | |||||||||||||||||
Ending balance of loans collectively evaluated for impairment | 844,372 | 71,441 | 1,381,586 | 315,606 | 56,810 | 367,399 | 84,490 | 3,121,704 | |||||||||||||||||||||||||
Total loans - excluding covered loans | $ | 861,033 | $ | 73,517 | $ | 1,417,008 | $ | 318,210 | $ | 56,810 | $ | 367,500 | $ | 84,986 | $ | 3,179,064 | |||||||||||||||||
Covered Loans | ' | ||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ||||||||||||||||||||||||||||||||
Changes in the Allowance for Loan and Lease Losses for the Previous Five Quarters | ' | ||||||||||||||||||||||||||||||||
The allowance for loan and lease losses on covered loans is presented in the tables below: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | Installment | Total | ||||||||||||||||||||||||||||
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | $ | 8,587 | $ | 13,508 | $ | 993 | $ | 171 | $ | 23,259 | |||||||||||||||||||||||
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Ending allowance on covered loans | $ | 8,587 | $ | 13,508 | $ | 993 | $ | 171 | $ | 23,259 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | Installment | Total | ||||||||||||||||||||||||||||
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | $ | 19,136 | $ | 22,918 | $ | 2,599 | $ | 537 | $ | 45,190 | |||||||||||||||||||||||
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Ending allowance on covered loans | $ | 19,136 | $ | 22,918 | $ | 2,599 | $ | 537 | $ | 45,190 | |||||||||||||||||||||||
Allowance for Loan and Lease Losses by Classification | ' | ||||||||||||||||||||||||||||||||
Changes in the allowance for loan and lease losses on covered loans were as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 32,961 | $ | 48,327 | $ | 45,190 | $ | 42,835 | |||||||||||||||||||||||||
Provision for loan and lease losses | 5,293 | 6,622 | 6,052 | 25,620 | |||||||||||||||||||||||||||||
Loans charged-off | (21,009 | ) | (9,058 | ) | (35,374 | ) | (24,339 | ) | |||||||||||||||||||||||||
Recoveries | 6,014 | 3,004 | 7,391 | 4,779 | |||||||||||||||||||||||||||||
Balance at end of period | $ | 23,259 | $ | 48,895 | $ | 23,259 | $ | 48,895 | |||||||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plan Amounts Recognized in the Consolidated Balance Sheets and Consolidated Statements of Income | ' | ||||||||||||||||
The following table sets forth information concerning amounts recognized in First Financial’s Consolidated Balance Sheets and Consolidated Statements of Income: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 916 | $ | 894 | $ | 2,789 | $ | 2,559 | |||||||||
Interest cost | 566 | 606 | 1,752 | 1,986 | |||||||||||||
Expected return on assets | (2,231 | ) | (2,281 | ) | (6,755 | ) | (6,751 | ) | |||||||||
Amortization of prior service cost | (105 | ) | (106 | ) | (317 | ) | (316 | ) | |||||||||
Net actuarial loss | 582 | 780 | 2,128 | 2,130 | |||||||||||||
Settlement charge | 1,396 | 0 | 5,712 | 0 | |||||||||||||
Net periodic benefit cost (income) | $ | 1,124 | $ | (107 | ) | $ | 5,309 | $ | (392 | ) | |||||||
FAIR_VALUE_DISCLOSURES_Tables
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
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: | |||||||||||||||||||||
Carrying | Estimated Fair Value | ||||||||||||||||||||
(Dollars in thousands) | value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and short-term investments | $ | 188,112 | $ | 188,112 | $ | 188,112 | $ | 0 | $ | 0 | |||||||||||
Investment securities held-to-maturity | 669,093 | 661,685 | 0 | 661,685 | 0 | ||||||||||||||||
Other investments | 75,945 | 75,945 | 0 | 75,945 | 0 | ||||||||||||||||
Loans held for sale | 10,704 | 10,704 | 0 | 10,704 | 0 | ||||||||||||||||
Loans - excluding covered loans | 3,385,402 | 3,379,595 | 0 | 0 | 3,379,595 | ||||||||||||||||
Covered loans | 495,265 | 504,781 | 0 | 0 | 504,781 | ||||||||||||||||
FDIC indemnification asset | 78,132 | 57,978 | 0 | 0 | 57,978 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Noninterest-bearing | $ | 1,141,016 | $ | 1,141,016 | $ | 0 | $ | 1,141,016 | $ | 0 | |||||||||||
Interest-bearing demand | 1,068,067 | 1,068,067 | 0 | 1,068,067 | 0 | ||||||||||||||||
Savings | 1,593,895 | 1,593,895 | 0 | 1,593,895 | 0 | ||||||||||||||||
Time | 926,029 | 921,933 | 0 | 921,933 | 0 | ||||||||||||||||
Total deposits | 4,729,007 | 4,724,911 | 0 | 4,724,911 | 0 | ||||||||||||||||
Short-term borrowings | 623,672 | 623,672 | 623,672 | 0 | 0 | ||||||||||||||||
Long-term debt | 61,088 | 63,338 | 0 | 63,338 | 0 | ||||||||||||||||
Carrying | Estimated Fair Value | ||||||||||||||||||||
(Dollars in thousands) | value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and short-term investments | $ | 158,843 | $ | 158,843 | $ | 158,843 | $ | 0 | $ | 0 | |||||||||||
Investment securities held-to-maturity | 770,755 | 778,474 | 0 | 778,474 | 0 | ||||||||||||||||
Other investments | 71,492 | 71,492 | 0 | 71,492 | 0 | ||||||||||||||||
Loans held for sale | 16,256 | 16,256 | 0 | 16,256 | 0 | ||||||||||||||||
Loans - excluding covered loans | 3,131,287 | 3,145,120 | 0 | 0 | 3,145,120 | ||||||||||||||||
Covered loans | 702,926 | 713,797 | 0 | 0 | 713,797 | ||||||||||||||||
FDIC indemnification asset | 119,607 | 106,380 | 0 | 0 | 106,380 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Noninterest-bearing | $ | 1,102,774 | $ | 1,102,774 | $ | 0 | $ | 1,102,774 | $ | 0 | |||||||||||
Interest-bearing demand | 1,160,815 | 1,160,815 | 0 | 1,160,815 | 0 | ||||||||||||||||
Savings | 1,623,614 | 1,623,614 | 0 | 1,623,614 | 0 | ||||||||||||||||
Time | 1,068,637 | 1,072,201 | 0 | 1,072,201 | 0 | ||||||||||||||||
Total deposits | 4,955,840 | 4,959,404 | 0 | 4,959,404 | 0 | ||||||||||||||||
Short-term borrowings | 624,570 | 624,570 | 624,570 | 0 | 0 | ||||||||||||||||
Long-term debt | 75,202 | 78,941 | 0 | 78,941 | 0 | ||||||||||||||||
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: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
Adjustments (1) | at Fair Value | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 14,848 | $ | 0 | $ | (14,848 | ) | $ | 0 | ||||||||||
Available-for-sale investment securities | 185 | 854,562 | 0 | 0 | 854,747 | ||||||||||||||||
Total | $ | 185 | $ | 869,410 | $ | 0 | $ | (14,848 | ) | $ | 854,747 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 16,044 | $ | 0 | $ | (14,848 | ) | $ | 1,196 | ||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
Adjustments (1) | at Fair Value | ||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 24,135 | $ | 0 | $ | (24,135 | ) | $ | 0 | ||||||||||
Available-for-sale investment securities | 144 | 1,031,952 | 0 | 0 | 1,032,096 | ||||||||||||||||
Total | $ | 144 | $ | 1,056,087 | $ | 0 | $ | (24,135 | ) | $ | 1,032,096 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivatives | $ | 0 | $ | 26,652 | $ | 0 | $ | (24,135 | ) | $ | 2,517 | ||||||||||
(1) Amounts represent the impact of legally enforceable master netting arrangements that allow First Financial to settle positive and negative positions and also cash collateral held with the same counterparties. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans (1) | $ | 0 | $ | 0 | $ | 21,390 | |||||||||||||||
OREO | 0 | 0 | 6,346 | ||||||||||||||||||
Covered OREO | 0 | 0 | 7,722 | ||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans (1) | $ | 0 | $ | 0 | $ | 19,564 | |||||||||||||||
OREO | 0 | 0 | 5,651 | ||||||||||||||||||
Covered OREO | 0 | 0 | 14,059 | ||||||||||||||||||
(1) Amounts represent the fair value of collateral for impaired loans allocated to the allowance for loan and lease losses. Fair values are determined using actual market prices (Level 1), independent third party valuations and borrower records, discounted as appropriate (Level 3). |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Total other comprehensive income | Total accumulated | |||||||||||||||||||||||||||||||
other comprehensive income | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Prior to | Reclassification | Pre-tax | Tax-effect | Net of tax | Beginning Balance | Net Activity | Ending Balance | ||||||||||||||||||||||||
Reclassification | from | |||||||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | $ | (34,212 | ) | $ | 1,724 | $ | (35,936 | ) | $ | 13,366 | $ | (22,570 | ) | $ | 12,802 | $ | (22,570 | ) | $ | (9,768 | ) | |||||||||||
Unrealized gain (loss) on derivatives | (298 | ) | (295 | ) | (3 | ) | 1 | (2 | ) | (143 | ) | (2 | ) | (145 | ) | |||||||||||||||||
Retirement obligation | 11,719 | (7,523 | ) | 19,242 | (7,266 | ) | 11,976 | (31,338 | ) | 11,976 | (19,362 | ) | ||||||||||||||||||||
Foreign currency translation | (21 | ) | 0 | (21 | ) | 0 | (21 | ) | 2 | (21 | ) | (19 | ) | |||||||||||||||||||
Total | $ | (22,812 | ) | $ | (6,094 | ) | $ | (16,718 | ) | $ | 6,101 | $ | (10,617 | ) | $ | (18,677 | ) | $ | (10,617 | ) | $ | (29,294 | ) | |||||||||
September 30, 2012 | ||||||||||||||||||||||||||||||||
Total other comprehensive income | Total accumulated | |||||||||||||||||||||||||||||||
other comprehensive income | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pre-tax | Tax-effect | Net of tax | Beginning Balance | Net Activity | Ending Balance | ||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | $ | 2,671 | $ | (1,009 | ) | $ | 1,662 | $ | 12,669 | $ | 1,662 | $ | 14,331 | |||||||||||||||||||
Unrealized gain (loss) on cash flow hedges | (292 | ) | 110 | (182 | ) | 0 | (182 | ) | (182 | ) | ||||||||||||||||||||||
Retirement obligation | 1,814 | (685 | ) | 1,129 | (34,136 | ) | 1,129 | (33,007 | ) | |||||||||||||||||||||||
Foreign currency translation | 26 | 0 | 26 | (23 | ) | 26 | 3 | |||||||||||||||||||||||||
Total | $ | 4,219 | $ | (1,584 | ) | $ | 2,635 | $ | (21,490 | ) | $ | 2,635 | $ | (18,855 | ) | |||||||||||||||||
Other Accumulated Comprehensive income reclassified from AOCI [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The following table details the activity reclassified from accumulated other comprehensive income into income during the period: | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount Reclassified from Accumulated Other Comprehensive Income (1) | Affected Line Item in the Consolidated Statements of Income | ||||||||||||||||||||||||||||||
Gains and losses on cash flow hedges | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (295 | ) | Interest expense - deposits | ||||||||||||||||||||||||||||
Realized gains and losses on securities available-for-sale | 1,724 | Gains on sales of investments securities | ||||||||||||||||||||||||||||||
Defined benefit pension plan | ||||||||||||||||||||||||||||||||
Amortization of prior service cost | 317 | (2) | ||||||||||||||||||||||||||||||
Recognized net actuarial loss | (2,128 | ) | (2) | |||||||||||||||||||||||||||||
Pension settlement charges | (5,712 | ) | Pension settlement charges | |||||||||||||||||||||||||||||
Amortization and settlement charges of defined benefit pension items | (7,523 | ) | ||||||||||||||||||||||||||||||
Total reclassifications for the period, before tax | $ | (6,094 | ) | |||||||||||||||||||||||||||||
(1) Negative amount are debits to profit/loss. | ||||||||||||||||||||||||||||||||
(2) Included in the computation of net periodic pension cost (see employee benefit footnote for additional details). |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator | |||||||||||||||||
Net income available to common shareholders | $ | 14,911 | $ | 16,242 | $ | 44,564 | $ | 51,038 | |||||||||
Denominator | |||||||||||||||||
Basic earnings per common share - weighted average shares | 57,201,390 | 57,976,943 | 57,309,934 | 57,902,102 | |||||||||||||
Effect of dilutive securities — | |||||||||||||||||
Employee stock awards | 698,194 | 842,833 | 725,862 | 905,210 | |||||||||||||
Warrants | 113,004 | 120,403 | 107,576 | 123,258 | |||||||||||||
Diluted earnings per common share - adjusted weighted average shares | 58,012,588 | 58,940,179 | 58,143,372 | 58,930,570 | |||||||||||||
Earnings per share available to common shareholders | |||||||||||||||||
Basic | $ | 0.26 | $ | 0.28 | $ | 0.78 | $ | 0.88 | |||||||||
Diluted | $ | 0.26 | $ | 0.28 | $ | 0.77 | $ | 0.87 | |||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Goodwill | $95,050,000 | ' | $95,050,000 | ' | $95,050,000 |
Finite-Lived Core Deposits, Gross | 6,200,000 | ' | 6,200,000 | ' | 7,400,000 |
Finite-Lived Intangible Assets, Amortization Expense | $400,000 | $700,000 | $1,100,000 | $2,100,000 | ' |
Core Deposits [Member] | ' | ' | ' | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Intangible assets amortization method | ' | ' | 'accelerated basis | ' | ' |
Estimated weighted average life (in years) | ' | ' | '7 years 1 month | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Letters of credit issued to guarantee performance of a client to a third party | $13,200,000 | $14,800,000 |
Commitments to Extend Credit | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Commitments outstanding to extend credit | $1,400,000,000 | $1,200,000,000 |
INVESTMENTS_Summary_of_HeldToM
INVESTMENTS - Summary of Held-To-Maturity and Available-For-Sale Investment Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment Holdings [Line Items] | ' | ' |
Held-to-Maturity Amortized Cost | $669,093 | $770,755 |
Held To Maturity Gross Unrealized Gain Accumulated In Investments | 925 | 9,021 |
Held To Maturity Securities Gross Unrealized Loss Accumulated In Investments | 8,333 | 1,302 |
Held-to-Maturity Market Value | 661,685 | 778,474 |
Available-for-Sale Amortized Cost | 875,928 | 1,017,104 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 6,250 | 16,725 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | 27,431 | 1,733 |
Available-for-Sale Market Value | 854,747 | 1,032,096 |
U.S. Treasuries | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Held-to-Maturity Amortized Cost | 0 | ' |
Held To Maturity Gross Unrealized Gain Accumulated In Investments | 0 | ' |
Held To Maturity Securities Gross Unrealized Loss Accumulated In Investments | 0 | ' |
Held-to-Maturity Market Value | 0 | ' |
Available-for-Sale Amortized Cost | 97 | ' |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | ' |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | 4 | ' |
Available-for-Sale Market Value | 93 | ' |
Securities of U.S. government agencies and corporations | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Held-to-Maturity Amortized Cost | 19,462 | 20,512 |
Held To Maturity Gross Unrealized Gain Accumulated In Investments | 0 | 679 |
Held To Maturity Securities Gross Unrealized Loss Accumulated In Investments | 864 | 0 |
Held-to-Maturity Market Value | 18,598 | 21,191 |
Available-for-Sale Amortized Cost | 10,266 | 15,562 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 333 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | 142 | 0 |
Available-for-Sale Market Value | 10,124 | 15,895 |
Mortgage-backed securities | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Held-to-Maturity Amortized Cost | 637,170 | 740,891 |
Held To Maturity Gross Unrealized Gain Accumulated In Investments | 768 | 8,077 |
Held To Maturity Securities Gross Unrealized Loss Accumulated In Investments | 6,561 | 1,290 |
Held-to-Maturity Market Value | 631,377 | 747,678 |
Available-for-Sale Amortized Cost | 652,808 | 854,150 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 6,093 | 14,564 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | 20,818 | 1,485 |
Available-for-Sale Market Value | 638,083 | 867,229 |
Obligations of state and other political subdivisions | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Held-to-Maturity Amortized Cost | 12,461 | 9,352 |
Held To Maturity Gross Unrealized Gain Accumulated In Investments | 157 | 265 |
Held To Maturity Securities Gross Unrealized Loss Accumulated In Investments | 908 | 12 |
Held-to-Maturity Market Value | 11,710 | 9,605 |
Available-for-Sale Amortized Cost | 34,005 | 35,913 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 31 | 169 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | 2,294 | 84 |
Available-for-Sale Market Value | 31,742 | 35,998 |
Asset-backed Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Held-to-Maturity Amortized Cost | 0 | 0 |
Held To Maturity Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Held To Maturity Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Held-to-Maturity Market Value | 0 | 0 |
Available-for-Sale Amortized Cost | 67,816 | 57,000 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 90 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | 359 | 1 |
Available-for-Sale Market Value | 67,457 | 57,089 |
Other securities | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Held-to-Maturity Amortized Cost | 0 | 0 |
Held To Maturity Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Held To Maturity Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Held-to-Maturity Market Value | 0 | 0 |
Available-for-Sale Amortized Cost | 110,936 | 54,479 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 126 | 1,569 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | 3,814 | 163 |
Available-for-Sale Market Value | $107,248 | $55,885 |
INVESTMENTS_Summary_of_Investm
INVESTMENTS - Summary of Investment Securities by Estimated Maturity (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Held-to-Maturity Amortized Cost | ' | ' |
Due in one year or less | $215 | ' |
Due after one year through five years | 409,559 | ' |
Due after five years through ten years | 258,526 | ' |
Due after ten years | 793 | ' |
Total | 669,093 | 770,755 |
Held-to-Maturity Market Value | ' | ' |
Due in one year or less | 218 | ' |
Due after one year through five years | 407,787 | ' |
Due after five years through ten years | 252,762 | ' |
Due after ten years | 918 | ' |
Held-to-Maturity Market Value | 661,685 | 778,474 |
Available-for-Sale Amortized Cost | ' | ' |
Due in one year or less | 5,009 | ' |
Due after one year through five years | 250,089 | ' |
Due after five years through ten years | 361,949 | ' |
Due after ten years | 258,881 | ' |
Total | 875,928 | 1,017,104 |
Available-for-Sale Market Value | ' | ' |
Due in one year or less | 5,152 | ' |
Due after one year through five years | 251,177 | ' |
Due after five years through ten years | 351,776 | ' |
Due after ten years | 246,642 | ' |
Available-for-Sale Market Value | $854,747 | $1,032,096 |
INVESTMENTS_Age_of_Gross_Unrea
INVESTMENTS - Age of Gross Unrealized Losses and Associated Fair Value by Investment Category (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | $1,032,629 | $280,435 |
Less than 12 Months Unrealized Loss | -32,770 | -1,895 |
12 Months or More Fair Value | 42,923 | 25,513 |
12 Months or More Unrealized Loss | -390 | -405 |
Total Fair Value | 1,075,552 | 305,948 |
Total Unrealized Loss | -33,160 | -2,300 |
Securities of U.S. government agencies and corporations | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 28,806 | ' |
Less than 12 Months Unrealized Loss | -756 | ' |
12 Months or More Fair Value | 0 | ' |
12 Months or More Unrealized Loss | 0 | ' |
Total Fair Value | 28,806 | ' |
Total Unrealized Loss | -756 | ' |
Mortgage-backed securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 807,599 | 240,641 |
Less than 12 Months Unrealized Loss | -24,767 | -1,635 |
12 Months or More Fair Value | 41,679 | 25,513 |
12 Months or More Unrealized Loss | -261 | -405 |
Total Fair Value | 849,278 | 266,154 |
Total Unrealized Loss | -25,028 | -2,040 |
Obligations of state and other political subdivisions | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 64,895 | 21,341 |
Less than 12 Months Unrealized Loss | -4,357 | -96 |
12 Months or More Fair Value | 0 | 0 |
12 Months or More Unrealized Loss | 0 | 0 |
Total Fair Value | 64,895 | 21,341 |
Total Unrealized Loss | -4,357 | -96 |
Asset-backed Securities [Member] | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 59,003 | 9,999 |
Less than 12 Months Unrealized Loss | -359 | -1 |
12 Months or More Fair Value | 0 | 0 |
12 Months or More Unrealized Loss | 0 | 0 |
Total Fair Value | 59,003 | 9,999 |
Total Unrealized Loss | -359 | -1 |
Other securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 72,326 | 8,454 |
Less than 12 Months Unrealized Loss | -2,531 | -163 |
12 Months or More Fair Value | 1,244 | 0 |
12 Months or More Unrealized Loss | -129 | 0 |
Total Fair Value | 73,570 | 8,454 |
Total Unrealized Loss | ($2,660) | ($163) |
DERIVATIVES_Additional_Informa
DERIVATIVES - Additional Information (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
entity | entity | |
Derivative [Line Items] | ' | ' |
Maximum derivative notional position as a percentage of assets | 35.00% | ' |
Maximum credit exposure as a percentage of capital | 3.00% | ' |
Maximum single counterparty credit risk exposure | $20,000,000 | ' |
Inerest-bearing deposit liability | 916,011,000 | 935,493,000 |
Number of counterparties | 9 | 8 |
Outstanding liability from counterparty contracts | 13,600,000 | 26,000,000 |
Interest-bearing deposit swap | 100,000,000 | 35,000,000 |
Credit Derivative Term 1 | '6 years | ' |
Fixed to floating interest rate swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets (Liabilities), at Fair Value, Net | 300,000 | 200,000 |
Fair Value Hedges | ' | ' |
Derivative [Line Items] | ' | ' |
Inerest-bearing deposit liability | 916,011,000 | 935,493,000 |
Accrued interest and other liabilities | Fair Value Hedges | ' | ' |
Derivative [Line Items] | ' | ' |
Inerest-bearing deposit liability | $563,200,000 | $509,100,000 |
DERIVATIVES_Summary_of_Derivat
DERIVATIVES - Summary of Derivative Financial Instruments by Nature of Underlying Asset or Liability (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Inerest-bearing deposit liability | $916,011 | $935,493 |
Fair Value Hedges | ' | ' |
Derivative [Line Items] | ' | ' |
Inerest-bearing deposit liability | $916,011 | $935,493 |
DERIVATIVES_Summary_of_Derivat1
DERIVATIVES - Summary of Derivative Financial Instruments and Balances (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Inerest-bearing deposit liability | $916,011 | $935,493 |
Estimate Fair Value Gain | 14,848 | 24,135 |
Estimate Fair Value Loss | -16,044 | -26,423 |
Fair Value Hedges | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Inerest-bearing deposit liability | 916,011 | 935,493 |
Fair Value Hedges | Accrued interest and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Inerest-bearing deposit liability | 563,200 | 509,100 |
Fair Value Hedges | Pay fixed interest rate swaps with counterparty | Accrued interest and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Inerest-bearing deposit liability | 10,431 | 12,739 |
Estimate Fair Value Gain | 0 | 0 |
Estimate Fair Value Loss | -999 | -1,445 |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Inerest-bearing deposit liability | 452,790 | 461,377 |
Estimate Fair Value Gain | 1,050 | 0 |
Estimate Fair Value Loss | -13,995 | -24,978 |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Inerest-bearing deposit liability | 452,790 | 461,377 |
Estimate Fair Value Gain | 13,798 | 24,135 |
Estimate Fair Value Loss | ($1,050) | $0 |
DERIVATIVES_DERIVATIVES_Disclo
DERIVATIVES DERIVATIVES - Disclosure by Type of Financial Instrument (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized liabilities | $16,044 | $26,423 |
Gross amounts offset in the Consolidated Balance Sheets | -12,496 | -23,726 |
Net amounts of liabilities presented in the Consolidated Balance Sheets | 3,548 | 2,697 |
Fair Value Hedges | Pay fixed interest rate swaps with counterparty | Accrued interest and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized liabilities | 999 | 1,445 |
Gross amounts offset in the Consolidated Balance Sheets | -393 | -669 |
Net amounts of liabilities presented in the Consolidated Balance Sheets | 606 | 776 |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized liabilities | 15,045 | 24,978 |
Gross amounts offset in the Consolidated Balance Sheets | -12,103 | -23,057 |
Net amounts of liabilities presented in the Consolidated Balance Sheets | $2,942 | $1,921 |
DERIVATIVES_Derivative_Financi
DERIVATIVES - Derivative Financial Instruments, Average Remaining Maturity and the Weighted-Average Interest Rates being Paid and Received (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | ||
Pay fixed interest rate swaps with counterparty | Matched interest rate swaps | Matched interest rate swaps | ||||
Derivative Financial Instruments Receive Fixed Pay Variable | Derivative Financial Instruments Receive Variable Pay Fixed | |||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Notional Value | $916,011 | $935,493 | $916,011 | $10,431 | $452,790 | $452,790 |
Average Maturity (years) | ' | ' | '4 years 1 month | '3 years | '4 years 1 month | '4 years 1 month |
Fair Value | ' | ' | ($1,196) | ($999) | $12,748 | ($12,945) |
Weighted-Average Rate Receive | ' | ' | 3.89% | 2.21% | 4.88% | 2.94% |
Weighted-Average Rate Pay | ' | ' | 3.95% | 6.85% | 2.94% | 4.88% |
DERIVATIVES_Location_and_Amoun
DERIVATIVES - Location and Amounts Recognized for Fair Value Hedges (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Increase (decrease) to Interest Income | ($123) | ($167) | ($393) | ($555) |
Interest Rate Contracts | Loans | Interest Income | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Increase (decrease) to Interest Income | ($123) | ($167) | ($393) | ($555) |
BORROWINGS_Borrowings_Addition
BORROWINGS Borrowings - - Additional Information (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Maximum | ||
Debt Instrument [Line Items] | ' | ' | ' |
Federal Home Loan Bank short-term borrowings | $518,200 | $502,000 | ' |
Securities Sold under Agreements to Repurchase | $52,500 | $65,000 | ' |
Securities Sold under Agreements to Repurchase, Remaining Contractual Term | ' | ' | '2 years |
Assets Sold under Agreements to Repurchase, Interest Rate | 3.49% | 3.50% | ' |
BORROWINGS_Schedule_of_Longter
BORROWINGS - Schedule of Long-term Debt (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ' | ' |
Tier One Capital Limitation Percentage | 25.00% | ' |
Debt Instrument, Unused Borrowing Capacity, Amount | $159,500,000 | ' |
Amount | ' | ' |
FHLB long-term advances | 7,813,000 | 9,427,000 |
Securities Sold under Agreements to Repurchase | 52,500,000 | 65,000,000 |
Other Long-term Debt | 775,000 | 775,000 |
Total long-term debt | $61,088,000 | $75,202,000 |
Average Rate [Abstract] | ' | ' |
Federal Home Loan Bank | 3.74% | 3.74% |
Weighted average rate on repurchase agreements | 3.49% | 3.50% |
Weighted average rate on other long-term debt | 0.00% | 0.00% |
Total long-term debt | 3.48% | 3.49% |
LOANS_excluding_covered_loans_1
LOANS (excluding covered loans) - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructured Loans, Nonaccrual Status | $13,000,000 | ' | $13,000,000 | ' | ' | $14,100,000 | ' | ' |
Gain (loss) on sale of other real estate owned | -184,000 | -1,372,000 | -902,000 | -2,681,000 | ' | ' | ' | ' |
Non Covered Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructured Loans, Nonaccrual Status | 13,000,000 | ' | 13,000,000 | ' | ' | 14,100,000 | ' | ' |
Real Estate Acquired Through Foreclosure | 11,804,000 | 13,912,000 | 11,804,000 | 13,912,000 | 11,798,000 | 12,526,000 | 15,688,000 | 11,317,000 |
Write-downs | $213,000 | $1,099,000 | $1,104,000 | $2,367,000 | ' | ' | ' | ' |
LOANS_excluding_covered_loans_2
LOANS (excluding covered loans) - Commercial and Consumer Credit Exposure by Risk Attribute (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | $960,016 | $861,033 |
Real Estate - Construction | 90,089 | 73,517 |
Real Estate - Commercial | 1,493,969 | 1,417,008 |
Real Estate Residential | 352,830 | 318,210 |
Installment | 49,273 | 56,810 |
Home equity | 373,839 | 367,500 |
Non Covered Loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 960,016 | 861,033 |
Real Estate - Construction | 90,089 | 73,517 |
Real Estate - Commercial | 1,493,969 | 1,417,008 |
Total Commercial | 2,544,074 | 2,351,558 |
Real Estate Residential | 352,830 | 318,210 |
Installment | 49,273 | 56,810 |
Home equity | 373,839 | 367,500 |
Other | 110,900 | 84,986 |
Total | 886,842 | 827,506 |
Non Covered Loans | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 914,021 | 803,351 |
Real Estate - Construction | 86,942 | 64,866 |
Real Estate - Commercial | 1,391,039 | 1,307,370 |
Total Commercial | 2,392,002 | 2,175,587 |
Non Covered Loans | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 29,061 | 29,663 |
Real Estate - Construction | 225 | 65 |
Real Estate - Commercial | 29,786 | 38,516 |
Total Commercial | 59,072 | 68,244 |
Non Covered Loans | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 16,934 | 28,019 |
Real Estate - Construction | 2,922 | 8,586 |
Real Estate - Commercial | 73,144 | 71,122 |
Total Commercial | 93,000 | 107,727 |
Non Covered Loans | Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 0 | 0 |
Real Estate - Construction | 0 | 0 |
Real Estate - Commercial | 0 | 0 |
Total Commercial | 0 | 0 |
Non Covered Loans | Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Real Estate Residential | 343,484 | 310,341 |
Installment | 48,852 | 56,358 |
Home equity | 370,968 | 364,248 |
Other | 110,814 | 84,490 |
Total | 874,118 | 815,437 |
Non Covered Loans | Nonperforming | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Real Estate Residential | 9,346 | 7,869 |
Installment | 421 | 452 |
Home equity | 2,871 | 3,252 |
Other | 86 | 496 |
Total | $12,724 | $12,069 |
LOANS_excluding_covered_loans_3
LOANS (excluding covered loans) - Loan Delinquency, including Nonaccrual Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Total loans, excluding covered loans | $3,430,916,000 | $3,179,064,000 |
Non Covered Loans | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 12,574,000 | 12,367,000 |
60 - 89 days past due | 5,246,000 | 5,411,000 |
> 90 days past due | 42,692,000 | 41,660,000 |
Total Past due | 60,512,000 | 59,438,000 |
Current | 3,370,404,000 | 3,119,626,000 |
Total loans, excluding covered loans | 3,430,916,000 | 3,179,064,000 |
> 90 days past due and still accruing | 265,000 | 212,000 |
Non Covered Loans | Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 1,018,000 | 1,770,000 |
60 - 89 days past due | 678,000 | 832,000 |
> 90 days past due | 9,294,000 | 4,197,000 |
Total Past due | 10,990,000 | 6,799,000 |
Current | 949,026,000 | 854,234,000 |
Total loans, excluding covered loans | 960,016,000 | 861,033,000 |
> 90 days past due and still accruing | 0 | 0 |
Non Covered Loans | Real estate-construction | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 23,000 | 0 |
60 - 89 days past due | 0 | 0 |
> 90 days past due | 1,098,000 | 892,000 |
Total Past due | 1,121,000 | 892,000 |
Current | 88,968,000 | 72,625,000 |
Total loans, excluding covered loans | 90,089,000 | 73,517,000 |
> 90 days past due and still accruing | 0 | 0 |
Non Covered Loans | Real estate-commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 8,280,000 | 2,549,000 |
60 - 89 days past due | 2,747,000 | 1,931,000 |
> 90 days past due | 23,569,000 | 27,966,000 |
Total Past due | 34,596,000 | 32,446,000 |
Current | 1,459,373,000 | 1,384,562,000 |
Total loans, excluding covered loans | 1,493,969,000 | 1,417,008,000 |
> 90 days past due and still accruing | 0 | 0 |
Non Covered Loans | Real estate-residential | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Total loans, excluding covered loans | 352,830,000 | 318,210,000 |
Non Covered Loans | Real estate - residential | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 1,705,000 | 6,071,000 |
60 - 89 days past due | 1,230,000 | 1,463,000 |
> 90 days past due | 6,484,000 | 6,113,000 |
Total Past due | 9,419,000 | 13,647,000 |
Current | 343,411,000 | 304,563,000 |
Total loans, excluding covered loans | 352,830,000 | 318,210,000 |
> 90 days past due and still accruing | 0 | 0 |
Non Covered Loans | Installment | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 389,000 | 280,000 |
60 - 89 days past due | 38,000 | 148,000 |
> 90 days past due | 371,000 | 344,000 |
Total Past due | 798,000 | 772,000 |
Current | 48,475,000 | 56,038,000 |
Total loans, excluding covered loans | 49,273,000 | 56,810,000 |
> 90 days past due and still accruing | 0 | 0 |
Non Covered Loans | Home equity | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 735,000 | 1,311,000 |
60 - 89 days past due | 442,000 | 869,000 |
> 90 days past due | 1,525,000 | 1,440,000 |
Total Past due | 2,702,000 | 3,620,000 |
Current | 371,137,000 | 363,880,000 |
Total loans, excluding covered loans | 373,839,000 | 367,500,000 |
> 90 days past due and still accruing | 0 | 0 |
Non Covered Loans | All other | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 424,000 | 386,000 |
60 - 89 days past due | 111,000 | 168,000 |
> 90 days past due | 351,000 | 708,000 |
Total Past due | 886,000 | 1,262,000 |
Current | 110,014,000 | 83,724,000 |
Total loans, excluding covered loans | 110,900,000 | 84,986,000 |
> 90 days past due and still accruing | $265,000 | $212,000 |
LOANS_excluding_covered_loans_4
LOANS (excluding covered loans) - Restructured Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
loans | loans | loans | loans | loans | |
D | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured Loans, Nonaccrual Status | $13,000,000 | ' | $13,000,000 | ' | $14,100,000 |
Loans and Leases Receivable, Impaired, Commitment to Lend | 600,000 | ' | 600,000 | ' | 3,500,000 |
Non Covered Loans | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Extended Maturities | 2,179,000 | 6,144,000 | 8,848,000 | 13,404,000 | ' |
Adjusted Interest Rates | 0 | 0 | 520,000 | 166,000 | ' |
Combined Rate And Maturity | 613,000 | 0 | 850,000 | 563,000 | ' |
Forebearance Agreements | 0 | 2,565,000 | 0 | 3,801,000 | ' |
Other | 807,000 | 395,000 | 3,786,000 | 616,000 | ' |
Total | 3,599,000 | 9,104,000 | 14,004,000 | 18,550,000 | ' |
Number of Restructured Loans | 215 | ' | 215 | ' | 145 |
Restructured loans, Number of Loans | 25 | 14 | 113 | 40 | ' |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | 3,711,000 | 8,892,000 | 16,705,000 | 18,376,000 | ' |
Restructured loans, Period End Balance | 3,599,000 | 9,104,000 | 14,004,000 | 18,550,000 | ' |
Restructured loans with payment default within 12 months of modification, Number of Loans | ' | ' | 18 | 2 | ' |
Restructured loans with payment default within 12 months of modification, Period End Balance | ' | ' | 5,220,000 | 1,133,000 | ' |
Total restructured loans | 29,300,000 | ' | 29,300,000 | ' | 25,000,000 |
Restructured loans on accrual status | 16,278,000 | ' | 16,278,000 | ' | 10,856,000 |
Restructured Loans, Nonaccrual Status | 13,000,000 | ' | 13,000,000 | ' | 14,100,000 |
Allowance for loan and lease losses lncluded in reserves for restructured loans | 4,000,000 | ' | 4,000,000 | ' | 3,000,000 |
Restructured loans uncollectible portion written off | 1,200,000 | ' | 2,400,000 | ' | 7,200,000 |
Accruing TDRs performing in accordance with restructured terms for more than one year | 8,400,000 | ' | 8,400,000 | ' | 2,700,000 |
Restructured loans performance threshold (days) | ' | ' | 90 | ' | ' |
Non Covered Loans | Commercial | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured loans, Number of Loans | 4 | 6 | 14 | 16 | ' |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | 494,000 | 3,787,000 | 8,233,000 | 8,358,000 | ' |
Restructured loans, Period End Balance | 490,000 | 4,027,000 | 6,105,000 | 8,589,000 | ' |
Restructured loans with payment default within 12 months of modification, Number of Loans | ' | ' | 4 | 2 | ' |
Restructured loans with payment default within 12 months of modification, Period End Balance | ' | ' | 4,882,000 | 1,133,000 | ' |
Non Covered Loans | Real estate-construction | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured loans, Number of Loans | 0 | 0 | 0 | 0 | ' |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | 0 | 0 | 0 | 0 | ' |
Restructured loans, Period End Balance | 0 | 0 | 0 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Number of Loans | ' | ' | 0 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Period End Balance | ' | ' | 0 | 0 | ' |
Non Covered Loans | Real estate-commercial | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured loans, Number of Loans | 10 | 8 | 17 | 22 | ' |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | 2,502,000 | 5,105,000 | 4,752,000 | 9,854,000 | ' |
Restructured loans, Period End Balance | 2,493,000 | 5,077,000 | 4,719,000 | 9,795,000 | ' |
Restructured loans with payment default within 12 months of modification, Number of Loans | ' | ' | 2 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Period End Balance | ' | ' | 63,000 | 0 | ' |
Non Covered Loans | Real estate - residential | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured loans, Number of Loans | 3 | 0 | 33 | 2 | ' |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | 387,000 | 0 | 2,356,000 | 164,000 | ' |
Restructured loans, Period End Balance | 367,000 | 0 | 2,178,000 | 166,000 | ' |
Restructured loans with payment default within 12 months of modification, Number of Loans | ' | ' | 3 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Period End Balance | ' | ' | 185,000 | 0 | ' |
Non Covered Loans | Installment | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured loans, Number of Loans | 3 | 0 | 14 | 0 | ' |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | 34,000 | 0 | 188,000 | 0 | ' |
Restructured loans, Period End Balance | 33,000 | 0 | 115,000 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Number of Loans | ' | ' | 4 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Period End Balance | ' | ' | 26,000 | 0 | ' |
Non Covered Loans | Home equity | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured loans, Number of Loans | 5 | 0 | 35 | 0 | ' |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | 294,000 | 0 | 1,176,000 | 0 | ' |
Restructured loans, Period End Balance | 216,000 | 0 | 887,000 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Number of Loans | ' | ' | 5 | 0 | ' |
Restructured loans with payment default within 12 months of modification, Period End Balance | ' | ' | 64,000 | 0 | ' |
Non Covered Loans | Residential | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Restructured Loans, Loan Relationships, Review Threshold Amount Minimum | ' | ' | $100,000 | ' | ' |
LOANS_excluding_covered_loans_5
LOANS (excluding covered loans) - Nonaccrual, Restructured and Impaired Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Restructured loans - nonaccrual status | $13,000,000 | ' | $13,000,000 | ' | $14,100,000 |
Interest included in income | ' | ' | ' | ' | ' |
Loans and Leases Receivable-Nonaccrual, future commitment to lend | 0 | 2,977,000 | 0 | 2,977,000 | ' |
Non Covered Loans | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 57,926,000 | ' | 57,926,000 | ' | 65,041,000 |
Restructured loans - accrual status | 16,278,000 | ' | 16,278,000 | ' | 10,856,000 |
Restructured loans - nonaccrual status | 13,000,000 | ' | 13,000,000 | ' | 14,100,000 |
Total restructured loans | 29,300,000 | ' | 29,300,000 | ' | 25,000,000 |
Total impaired loans | 74,204,000 | ' | 74,204,000 | ' | 75,897,000 |
Interest income effect | ' | ' | ' | ' | ' |
Gross amount of interest that would have been recorded under original terms | 1,142,000 | 1,145,000 | 3,399,000 | 3,734,000 | ' |
Interest included in income | ' | ' | ' | ' | ' |
Nonaccrual loans | 130,000 | 158,000 | 472,000 | 586,000 | ' |
Restructured loans | 115,000 | 95,000 | 316,000 | 247,000 | ' |
Interest income recognized | 245,000 | 253,000 | 788,000 | 833,000 | 1,125,000 |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 897,000 | 892,000 | 2,611,000 | 2,901,000 | ' |
Non Covered Loans | Commercial | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 8,554,000 | ' | 8,554,000 | ' | 15,893,000 |
Total impaired loans | 12,554,000 | ' | 12,554,000 | ' | 18,521,000 |
Interest included in income | ' | ' | ' | ' | ' |
Interest income recognized | 25,000 | ' | 199,000 | ' | 376,000 |
Non Covered Loans | Real estate-construction | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 1,099,000 | ' | 1,099,000 | ' | 2,102,000 |
Total impaired loans | 1,099,000 | ' | 1,099,000 | ' | 2,102,000 |
Interest included in income | ' | ' | ' | ' | ' |
Interest income recognized | 0 | ' | 7,000 | ' | 96,000 |
Non Covered Loans | Real estate-commercial | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 35,549,000 | ' | 35,549,000 | ' | 34,977,000 |
Total impaired loans | 43,706,000 | ' | 43,706,000 | ' | 39,796,000 |
Interest included in income | ' | ' | ' | ' | ' |
Interest income recognized | 158,000 | ' | 406,000 | ' | 512,000 |
Non Covered Loans | Real estate - residential | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 9,346,000 | ' | 9,346,000 | ' | 7,869,000 |
Total impaired loans | 13,069,000 | ' | 13,069,000 | ' | 11,178,000 |
Interest included in income | ' | ' | ' | ' | ' |
Interest income recognized | 49,000 | ' | 139,000 | ' | 119,000 |
Non Covered Loans | Installment | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 421,000 | ' | 421,000 | ' | 452,000 |
Total impaired loans | 489,000 | ' | 489,000 | ' | 452,000 |
Interest included in income | ' | ' | ' | ' | ' |
Interest income recognized | 1,000 | ' | 4,000 | ' | 2,000 |
Non Covered Loans | Home equity | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 2,871,000 | ' | 2,871,000 | ' | 3,252,000 |
Total impaired loans | 3,201,000 | ' | 3,201,000 | ' | 3,352,000 |
Interest included in income | ' | ' | ' | ' | ' |
Interest income recognized | 12,000 | ' | 33,000 | ' | 20,000 |
Non Covered Loans | Other Loans [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 86,000 | ' | 86,000 | ' | 496,000 |
Total impaired loans | 86,000 | ' | 86,000 | ' | 496,000 |
Interest included in income | ' | ' | ' | ' | ' |
Interest income recognized | $0 | ' | $0 | ' | $0 |
LOANS_excluding_covered_loans_6
LOANS (excluding covered loans) - Investment in Impaired Loans (Details) (Non Covered Loans, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | $74,204 | ' | $74,204 | ' | $75,897 |
Contractual Principal Balance | 89,479 | ' | 89,479 | ' | 89,728 |
Related Allowance | 8,366 | ' | 8,366 | ' | 9,528 |
Average Recorded Investment | ' | ' | 75,563 | ' | 78,426 |
Interest income recognized | 245 | 253 | 788 | 833 | 1,125 |
Commercial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 12,554 | ' | 12,554 | ' | 18,521 |
Contractual Principal Balance | 15,980 | ' | 15,980 | ' | 21,521 |
Related Allowance | 1,645 | ' | 1,645 | ' | 1,151 |
Average Recorded Investment | ' | ' | 16,643 | ' | 14,687 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 8 | ' | 58 | ' | 161 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 17 | ' | 141 | ' | 215 |
Interest income recognized | 25 | ' | 199 | ' | 376 |
Real estate-construction | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 1,099 | ' | 1,099 | ' | 2,102 |
Contractual Principal Balance | 1,671 | ' | 1,671 | ' | 2,840 |
Related Allowance | 0 | ' | 0 | ' | 838 |
Average Recorded Investment | ' | ' | 1,600 | ' | 8,890 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | ' | 7 | ' | 81 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | ' | 0 | ' | 15 |
Interest income recognized | 0 | ' | 7 | ' | 96 |
Real estate-commercial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 43,706 | ' | 43,706 | ' | 39,796 |
Contractual Principal Balance | 52,355 | ' | 52,355 | ' | 47,262 |
Related Allowance | 6,371 | ' | 6,371 | ' | 7,155 |
Average Recorded Investment | ' | ' | 41,078 | ' | 41,053 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 50 | ' | 89 | ' | 235 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 108 | ' | 317 | ' | 277 |
Interest income recognized | 158 | ' | 406 | ' | 512 |
Real estate - residential | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 13,069 | ' | 13,069 | ' | 11,178 |
Contractual Principal Balance | 14,948 | ' | 14,948 | ' | 12,820 |
Related Allowance | 348 | ' | 348 | ' | 290 |
Average Recorded Investment | ' | ' | 12,200 | ' | 10,741 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 10 | ' | 28 | ' | 38 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 39 | ' | 111 | ' | 81 |
Interest income recognized | 49 | ' | 139 | ' | 119 |
Installment | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 489 | ' | 489 | ' | 452 |
Contractual Principal Balance | 531 | ' | 531 | ' | 556 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 418 | ' | 452 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | ' | 0 | ' | 0 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 1 | ' | 4 | ' | 2 |
Interest income recognized | 1 | ' | 4 | ' | 2 |
Home equity | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 3,201 | ' | 3,201 | ' | 3,352 |
Contractual Principal Balance | 3,908 | ' | 3,908 | ' | 4,233 |
Related Allowance | 2 | ' | 2 | ' | 2 |
Average Recorded Investment | ' | ' | 3,230 | ' | 2,504 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1 | ' | 1 | ' | 1 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 11 | ' | 32 | ' | 19 |
Interest income recognized | 12 | ' | 33 | ' | 20 |
Other Loans [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 86 | ' | 86 | ' | 496 |
Contractual Principal Balance | 86 | ' | 86 | ' | 496 |
Related Allowance | 0 | ' | 0 | ' | 92 |
Average Recorded Investment | ' | ' | 394 | ' | 99 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | ' | 0 | ' | 0 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | ' | 0 | ' | 0 |
Interest income recognized | 0 | ' | 0 | ' | 0 |
Impaired Financing Receivables With Related Allowance [Member] | Commercial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 6,134 | ' | 6,134 | ' | 3,560 |
Contractual Principal Balance | 7,500 | ' | 7,500 | ' | 4,252 |
Related Allowance | 1,645 | ' | 1,645 | ' | 1,151 |
Average Recorded Investment | ' | ' | 4,556 | ' | 5,350 |
Impaired Financing Receivables With Related Allowance [Member] | Real estate-construction | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 0 | ' | 0 | ' | 1,640 |
Contractual Principal Balance | 0 | ' | 0 | ' | 2,168 |
Related Allowance | 0 | ' | 0 | ' | 838 |
Average Recorded Investment | ' | ' | 907 | ' | 5,033 |
Impaired Financing Receivables With Related Allowance [Member] | Real estate-commercial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 27,123 | ' | 27,123 | ' | 24,014 |
Contractual Principal Balance | 31,628 | ' | 31,628 | ' | 25,684 |
Related Allowance | 6,371 | ' | 6,371 | ' | 7,155 |
Average Recorded Investment | ' | ' | 23,463 | ' | 25,499 |
Impaired Financing Receivables With Related Allowance [Member] | Real estate - residential | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 2,027 | ' | 2,027 | ' | 1,956 |
Contractual Principal Balance | 2,082 | ' | 2,082 | ' | 2,003 |
Related Allowance | 348 | ' | 348 | ' | 290 |
Average Recorded Investment | ' | ' | 1,992 | ' | 2,278 |
Impaired Financing Receivables With Related Allowance [Member] | Installment | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 0 | ' | 0 | ' | 0 |
Contractual Principal Balance | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 0 | ' | 0 |
Impaired Financing Receivables With Related Allowance [Member] | Home equity | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 101 | ' | 101 | ' | 101 |
Contractual Principal Balance | 101 | ' | 101 | ' | 101 |
Related Allowance | 2 | ' | 2 | ' | 2 |
Average Recorded Investment | ' | ' | 101 | ' | 81 |
Impaired Financing Receivables With Related Allowance [Member] | Other Loans [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 0 | ' | 0 | ' | 170 |
Contractual Principal Balance | 0 | ' | 0 | ' | 170 |
Related Allowance | 0 | ' | 0 | ' | 92 |
Average Recorded Investment | ' | ' | 209 | ' | 34 |
Loans with no related allowance recorded [member] | Commercial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 6,420 | ' | 6,420 | ' | 14,961 |
Contractual Principal Balance | 8,480 | ' | 8,480 | ' | 17,269 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 12,087 | ' | 9,337 |
Loans with no related allowance recorded [member] | Real estate-construction | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 1,099 | ' | 1,099 | ' | 462 |
Contractual Principal Balance | 1,671 | ' | 1,671 | ' | 672 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 693 | ' | 3,857 |
Loans with no related allowance recorded [member] | Real estate-commercial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 16,583 | ' | 16,583 | ' | 15,782 |
Contractual Principal Balance | 20,727 | ' | 20,727 | ' | 21,578 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 17,615 | ' | 15,554 |
Loans with no related allowance recorded [member] | Real estate - residential | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 11,042 | ' | 11,042 | ' | 9,222 |
Contractual Principal Balance | 12,866 | ' | 12,866 | ' | 10,817 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 10,208 | ' | 8,463 |
Loans with no related allowance recorded [member] | Installment | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 489 | ' | 489 | ' | 452 |
Contractual Principal Balance | 531 | ' | 531 | ' | 556 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 418 | ' | 452 |
Loans with no related allowance recorded [member] | Home equity | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 3,100 | ' | 3,100 | ' | 3,251 |
Contractual Principal Balance | 3,807 | ' | 3,807 | ' | 4,132 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 3,129 | ' | 2,423 |
Loans with no related allowance recorded [member] | Other Loans [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment | 86 | ' | 86 | ' | 326 |
Contractual Principal Balance | 86 | ' | 86 | ' | 326 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | $185 | ' | $65 |
LOANS_excluding_covered_loans_7
LOANS (excluding covered loans) - Changes in Other Real Estate Owned (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Disposals | ' | ' | $23,590 | $30,017 |
Non Covered Loans | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | 11,798 | 15,688 | 12,526 | 11,317 |
Additions | 873 | 945 | 3,569 | 8,208 |
Disposals | 654 | 1,622 | 3,187 | 3,246 |
Write-downs | 213 | 1,099 | 1,104 | 2,367 |
Balance at end of period | 11,804 | 13,912 | 11,804 | 13,912 |
Non Covered Loans | Commercial | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Additions | 608 | 539 | 2,924 | 5,888 |
Disposals | 500 | 1,209 | 2,382 | 2,221 |
Write-downs | 71 | 1,041 | 632 | 2,181 |
Non Covered Loans | Residential | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Additions | 265 | 406 | 645 | 2,320 |
Disposals | 154 | 413 | 805 | 1,025 |
Write-downs | $142 | $58 | $472 | $186 |
LOANS_covered_Additional_Infor
LOANS (covered) - Additional Information (Details) (Covered Loans, USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Loans Accounted for Under FASB ASC Topic 310-30 | Loans Accounted for Under FASB ASC Topic 310-30 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Outstanding balance including contractual principal, interest, fees, and penalties | ' | ' | ' | ' | $569,900,000 | $852,900,000 |
Reclassification from non-accretable difference | ($4,979,000) | $2,338,000 | ($5,687,000) | $25,780,000 | ' | ' |
Loans, Federal Deposit Insurance Corporation Reimbursement Percentage on Losses Below Threshold | ' | ' | 80.00% | ' | ' | ' |
Loans, Federal Deposit Insurance Corporation Reimbursement Percentage on Losses Above Threshold | ' | ' | 95.00% | ' | ' | ' |
LOANS_covered_Carrying_Value_o
LOANS (covered) - Carrying Value of Purchased Impaired and Nonimpaired Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $518,524 | $748,116 |
Commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 52,276 | 102,126 |
Real estate-construction | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 8,692 | 10,631 |
Real estate-commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 312,798 | 465,555 |
Real estate - residential | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 84,418 | 100,694 |
Installment | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 6,135 | 8,674 |
Home equity | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 51,692 | 57,458 |
Other | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 2,513 | 2,978 |
Loans Accounted for Under FASB ASC Topic 310-30 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 457,093 | 674,157 |
Loans Accounted for Under FASB ASC Topic 310-30 | Commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 51,077 | 94,775 |
Loans Accounted for Under FASB ASC Topic 310-30 | Real estate-construction | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 8,692 | 10,631 |
Loans Accounted for Under FASB ASC Topic 310-30 | Real estate-commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 306,345 | 458,066 |
Loans Accounted for Under FASB ASC Topic 310-30 | Real estate - residential | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 84,418 | 100,694 |
Loans Accounted for Under FASB ASC Topic 310-30 | Installment | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 5,552 | 7,911 |
Loans Accounted for Under FASB ASC Topic 310-30 | Home equity | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 1,009 | 2,080 |
Loans Accounted for Under FASB ASC Topic 310-30 | Other | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 0 |
Loans Excluded from FASB ASC Topic 310-30 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 61,431 | 73,959 |
Loans Excluded from FASB ASC Topic 310-30 | Commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 1,199 | 7,351 |
Loans Excluded from FASB ASC Topic 310-30 | Real estate-construction | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 0 |
Loans Excluded from FASB ASC Topic 310-30 | Real estate-commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 6,453 | 7,489 |
Loans Excluded from FASB ASC Topic 310-30 | Real estate - residential | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 0 |
Loans Excluded from FASB ASC Topic 310-30 | Installment | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 583 | 763 |
Loans Excluded from FASB ASC Topic 310-30 | Home equity | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 50,683 | 55,378 |
Loans Excluded from FASB ASC Topic 310-30 | Other | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $2,513 | $2,978 |
LOANS_covered_Carrying_Amount_
LOANS (covered) - Carrying Amount of Accretable Yield for Purchased Impaired and Nonimpaired Loans (Details) (Covered Loans, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Covered Loans | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | $173,920 | $283,296 | $224,694 | $344,410 |
Reclassification from non-accretable difference | -4,979 | 2,338 | -5,687 | 25,780 |
Accretion | -13,772 | -21,730 | -46,971 | -71,674 |
Other net activity | -8,347 | -11,749 | -25,214 | -46,361 |
Balance at end of period | $146,822 | $252,155 | $146,822 | $252,155 |
LOANS_covered_Covered_Commerci
LOANS (covered) - Covered Commercial and Consumer Credit Exposure by Risk Attribute (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $518,524 | $748,116 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 52,276 | 102,126 |
Real estate-commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 312,798 | 465,555 |
Residential real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 84,418 | 100,694 |
Installment | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 6,135 | 8,674 |
Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 51,692 | 57,458 |
Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 2,513 | 2,978 |
Commercial total | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 373,766 | 578,312 |
Commercial total | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 204,379 | 263,660 |
Commercial total | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 49,411 | 87,194 |
Commercial total | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 119,186 | 225,261 |
Commercial total | Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 790 | 2,197 |
Commercial total | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 52,276 | 102,126 |
Commercial total | Commercial | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 27,580 | 48,213 |
Commercial total | Commercial | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 7,933 | 16,293 |
Commercial total | Commercial | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 15,973 | 35,596 |
Commercial total | Commercial | Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 790 | 2,024 |
Commercial total | Real estate - construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 8,692 | 10,631 |
Commercial total | Real estate - construction | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 1,714 | 2,304 |
Commercial total | Real estate - construction | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 7 |
Commercial total | Real estate - construction | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 6,978 | 8,320 |
Commercial total | Real estate - construction | Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 0 |
Commercial total | Real estate-commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 312,798 | 465,555 |
Commercial total | Real estate-commercial | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 175,085 | 213,143 |
Commercial total | Real estate-commercial | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 41,478 | 70,894 |
Commercial total | Real estate-commercial | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 96,235 | 181,345 |
Commercial total | Real estate-commercial | Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 173 |
Total | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 144,758 | 169,804 |
Total | Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 142,740 | 165,566 |
Total | Nonperforming | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 2,018 | 4,238 |
Total | Residential real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 84,418 | 100,694 |
Total | Residential real estate | Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 84,418 | 100,694 |
Total | Residential real estate | Nonperforming | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 0 |
Total | Installment | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 6,135 | 8,674 |
Total | Installment | Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 6,135 | 8,674 |
Total | Installment | Nonperforming | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 0 | 0 |
Total | Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 51,692 | 57,458 |
Total | Home equity | Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 49,680 | 53,231 |
Total | Home equity | Nonperforming | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 2,012 | 4,227 |
Total | Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 2,513 | 2,978 |
Total | Other | Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 2,507 | 2,967 |
Total | Other | Nonperforming | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $6 | $11 |
LOANS_covered_Covered_Loan_Del
LOANS (covered) - Covered Loan Delinquency, Excluding Loans Accounted for Under FASB ASC Topic 310-30 (Details) (Covered Loans, Loans Excluded from FASB ASC Topic 310-30, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | $849,000 | $794,000 |
60 - 89 days past due | 600,000 | 1,619,000 |
> 90 days past due | 3,289,000 | 9,721,000 |
Total Past due | 4,738,000 | 12,134,000 |
Current | 56,693,000 | 61,825,000 |
Total | 61,431,000 | 73,959,000 |
> 90 days past due and still accruing | 43,000 | 31,000 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 59,000 | 351,000 |
60 - 89 days past due | 136,000 | 148,000 |
> 90 days past due | 379,000 | 3,781,000 |
Total Past due | 574,000 | 4,280,000 |
Current | 625,000 | 3,071,000 |
Total | 1,199,000 | 7,351,000 |
> 90 days past due and still accruing | 0 | 0 |
Real estate-commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 59,000 | 138,000 |
60 - 89 days past due | 5,000 | 1,149,000 |
> 90 days past due | 1,809,000 | 2,201,000 |
Total Past due | 1,873,000 | 3,488,000 |
Current | 4,580,000 | 4,001,000 |
Total | 6,453,000 | 7,489,000 |
> 90 days past due and still accruing | 0 | 0 |
Installment | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 6,000 | 0 |
60 - 89 days past due | 0 | 0 |
> 90 days past due | 0 | 0 |
Total Past due | 6,000 | 0 |
Current | 577,000 | 763,000 |
Total | 583,000 | 763,000 |
> 90 days past due and still accruing | 0 | 0 |
Home equity | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 722,000 | 286,000 |
60 - 89 days past due | 459,000 | 296,000 |
> 90 days past due | 1,052,000 | 3,697,000 |
Total Past due | 2,233,000 | 4,279,000 |
Current | 48,450,000 | 51,099,000 |
Total | 50,683,000 | 55,378,000 |
> 90 days past due and still accruing | 0 | 0 |
All other | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 days past due | 3,000 | 19,000 |
60 - 89 days past due | 0 | 26,000 |
> 90 days past due | 49,000 | 42,000 |
Total Past due | 52,000 | 87,000 |
Current | 2,461,000 | 2,891,000 |
Total | 2,513,000 | 2,978,000 |
> 90 days past due and still accruing | $43,000 | $31,000 |
LOANS_covered_Covered_Nonaccru
LOANS (covered) - Covered Nonaccrual Loans (Details) (Covered Loans, USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | $4,355 | ' | $4,355 | ' | $11,722 |
Restructured loans - accrual status | 351 | ' | 351 | ' | 0 |
Total impaired loans | 4,706 | ' | 4,706 | ' | 11,722 |
Interest income effect | ' | ' | ' | ' | ' |
Gross amount of interest that would have been recorded under original terms | 81 | 146 | 334 | 504 | ' |
Nonaccrual loans | 6 | 9 | 20 | 70 | ' |
Financing Receivable, Impaired, Interest Income Recorded on Restructured Loans | 3 | 0 | 6 | 0 | ' |
Interest income recognized | 9 | 9 | 26 | 70 | ' |
Net impact on interest income | 72 | 137 | 308 | 434 | ' |
Commercial | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 438 | ' | 438 | ' | 4,498 |
Real estate-commercial | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 1,899 | ' | 1,899 | ' | 2,986 |
Installment | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 0 | ' | 0 | ' | 0 |
Home equity | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | 2,012 | ' | 2,012 | ' | 4,227 |
All other | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Nonaccrual loans | $6 | ' | $6 | ' | $11 |
LOANS_covered_Investment_in_Co
LOANS (covered) - Investment in Covered Impaired Loans, excluding Loans Accounted for under FASB ASC Topic 310-30 (Details) (Covered Loans, USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | Loans with no related allowance recorded [member] | ||||||
Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | Loans Excluded from FASB ASC Topic 310-30 | ||||||
Commercial | Commercial | Commercial | Real estate-commercial | Real estate-commercial | Real estate-commercial | Installment | Installment | Home equity | Home equity | Home equity | Other | Other | Other | |||||||||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded Investment | $4,706 | ' | $4,706 | ' | $11,722 | $4,706 | $4,706 | $11,722 | $789 | $789 | $4,498 | $1,899 | $1,899 | $2,986 | $0 | $0 | $2,012 | $2,012 | $4,227 | $6 | $6 | $11 |
Unpaid Principal Balance | ' | ' | ' | ' | ' | 7,132 | 7,132 | 13,147 | 1,045 | 1,045 | 4,660 | 3,342 | 3,342 | 3,216 | 0 | 0 | 2,739 | 2,739 | 5,260 | 6 | 6 | 11 |
Related Allowance | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | ' | ' | ' | ' | ' | ' | 6,769 | 8,698 | ' | 2,072 | 4,526 | ' | 1,895 | 2,153 | ' | 2 | ' | 2,790 | 2,006 | ' | 10 | 13 |
Interest income recognized | $9 | $9 | $26 | $70 | ' | $9 | $26 | $85 | $3 | $11 | $62 | $1 | $3 | $18 | $0 | $0 | $5 | $12 | $5 | $0 | $0 | $0 |
LOANS_covered_Changes_in_Cover
LOANS (covered) - Changes in Covered Other Real Estate Owned (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Disposals | ' | ' | $23,590 | $30,017 |
Covered Loans | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | 22,475 | 25,408 | 28,862 | 44,818 |
Additions | 8,667 | 9,315 | 21,535 | 17,100 |
Disposals | 2,941 | 5,858 | 20,403 | 26,771 |
Write-downs | 451 | 249 | 2,244 | 6,531 |
Balance at end of period | 27,750 | 28,616 | 27,750 | 28,616 |
Covered Loans | Commercial | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Additions | 8,572 | 8,578 | 21,063 | 13,677 |
Disposals | 2,865 | 5,858 | 19,513 | 24,417 |
Write-downs | 451 | 249 | 2,133 | 5,665 |
Covered Loans | Residential | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Additions | 95 | 737 | 472 | 3,423 |
Disposals | 76 | 0 | 890 | 2,354 |
Write-downs | $0 | $0 | $111 | $866 |
ALLOWANCE_FOR_LOAN_AND_LEASE_L2
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in the Allowance for Loan and Lease Losses for the Current and Comparable Quarter and Year-to-Date (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Receivables [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $47,047 | $50,952 | $47,777 | $52,576 |
Provision for loan and lease losses - uncovered | 1,413 | 3,613 | 6,863 | 15,235 |
Loans charged off | -5,111 | -5,804 | -12,515 | -19,764 |
Recoveries | 2,165 | 431 | 3,389 | 1,145 |
Balance at end of period | $45,514 | $49,192 | $45,514 | $49,192 |
Percentage of Credit Loss Allowance to Loans | 1.33% | 1.60% | 1.33% | 1.60% |
ALLOWANCE_FOR_LOAN_AND_LEASE_L3
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in the Allowance for Loan and Lease Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Non Covered Loans | Non Covered Loans | Commercial | Commercial | Real estate-construction | Real estate-construction | Real estate-commercial | Real estate-commercial | Real estate-residential | Real estate-residential | Installment | Installment | Home equity | Home equity | All other | All other | ||||||
Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | Non Covered Loans | ||||||||
Allowance for loan and lease losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $47,047 | $50,952 | $47,777 | $52,576 | ' | $47,777 | $52,576 | $7,926 | $10,289 | $3,268 | $4,424 | $24,151 | $18,228 | $3,599 | $4,994 | $522 | $1,659 | $5,173 | $10,751 | $3,138 | $2,231 |
Provision for loan and lease losses | 1,413 | 3,613 | 6,863 | 15,235 | ' | 6,863 | 19,117 | 3,675 | 1,556 | -3,166 | 1,528 | 3,691 | 16,670 | 260 | 346 | -105 | -883 | 1,707 | -2,032 | 801 | 1,932 |
Gross charge-offs | 5,111 | 5,804 | 12,515 | 19,764 | ' | 12,515 | 25,312 | 3,122 | 4,312 | 0 | 2,684 | 5,213 | 11,012 | 798 | 1,814 | 296 | 577 | 1,703 | 3,661 | 1,383 | 1,252 |
Recoveries | 2,165 | 431 | 3,389 | 1,145 | ' | 3,389 | 1,396 | 478 | 393 | 626 | 0 | 1,360 | 265 | 107 | 73 | 244 | 323 | 372 | 115 | 202 | 227 |
Total net charge-offs | ' | ' | ' | ' | ' | 9,126 | 23,916 | 2,644 | 3,919 | -626 | 2,684 | 3,853 | 10,747 | 691 | 1,741 | 52 | 254 | 1,331 | 3,546 | 1,181 | 1,025 |
Balance at end of period | 45,514 | 49,192 | 45,514 | 49,192 | ' | 45,514 | 47,777 | 8,957 | 7,926 | 728 | 3,268 | 23,989 | 24,151 | 3,168 | 3,599 | 365 | 522 | 5,549 | 5,173 | 2,758 | 3,138 |
Ending allowance on loans individually evaluated for impairment | ' | ' | ' | ' | ' | 8,366 | 9,528 | 1,645 | 1,151 | 0 | 838 | 6,371 | 7,155 | 348 | 290 | 0 | 0 | 2 | 2 | 0 | 92 |
Ending allowance on loans collectively evaluated for impairment | ' | ' | ' | ' | ' | 37,148 | 38,249 | 7,312 | 6,775 | 728 | 2,430 | 17,618 | 16,996 | 2,820 | 3,309 | 365 | 522 | 5,547 | 5,171 | 2,758 | 3,046 |
Loans and Leases: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance of loans individually evaluated for impairment | ' | ' | ' | ' | ' | 53,603 | 57,360 | 10,203 | 16,661 | 1,099 | 2,076 | 38,162 | 35,422 | 3,624 | 2,604 | 0 | 0 | 515 | 101 | 0 | 496 |
Ending balance of loans collectively evaluated for impairment | ' | ' | ' | ' | ' | 3,377,313 | 3,121,704 | 949,813 | 844,372 | 88,990 | 71,441 | 1,455,807 | 1,381,586 | 349,206 | 315,606 | 49,273 | 56,810 | 373,324 | 367,399 | 110,900 | 84,490 |
Loans and Leases Receivable, Net of Deferred Income | $3,430,916 | ' | $3,430,916 | ' | $3,179,064 | $3,430,916 | $3,179,064 | $960,016 | $861,033 | $90,089 | $73,517 | $1,493,969 | $1,417,008 | $352,830 | $318,210 | $49,273 | $56,810 | $373,839 | $367,500 | $110,900 | $84,986 |
ALLOWANCE_FOR_LOAN_AND_LEASE_L4
ALLOWANCE FOR LOAN AND LEASE LOSSES - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for loan and lease losses | $5,293,000 | $6,622,000 | $6,052,000 | $25,620,000 | ' | ' | ' | ' |
Net charge-offs | 15,000,000 | 6,100,000 | 28,000,000 | 19,600,000 | ' | ' | ' | ' |
FDIC loss sharing income | 5,555,000 | 8,496,000 | 7,105,000 | 29,592,000 | ' | ' | ' | ' |
Allowance for covered loan losses | 23,259,000 | 48,895,000 | 23,259,000 | 48,895,000 | 32,961,000 | 45,190,000 | 48,327,000 | 42,835,000 |
Loss sharing expense | 1,724,000 | 3,584,000 | 5,588,000 | 8,420,000 | ' | ' | ' | ' |
Gains (losses) on sales of covered Other Real Estate | -204,000 | 25,000 | 2,165,000 | -2,500,000 | ' | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance threshold for impaired and non-impaired commercial loans | ' | ' | 250,000 | ' | ' | ' | ' | ' |
Commercial | Non Covered Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructured Loans, Loan Relationships, Review Threshold Amount Minimum | ' | ' | 250,000 | ' | ' | ' | ' | ' |
Real estate - residential | Non Covered Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructured Loans, Loan Relationships, Review Threshold Amount Minimum | ' | ' | $100,000 | ' | ' | ' | ' | ' |
ALLOWANCE_FOR_LOAN_AND_LEASE_L5
ALLOWANCE FOR LOAN AND LEASE LOSSES - Allowance for Loan and Lease Losses on Covered Loans (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | $23,259 | ' | $45,190 | ' | ' | ' |
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | ' | 0 | ' | ' | ' |
Ending allowance on covered loans | 23,259 | 32,961 | 45,190 | 48,895 | 48,327 | 42,835 |
Commercial | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | 8,587 | ' | 19,136 | ' | ' | ' |
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | ' | 0 | ' | ' | ' |
Ending allowance on covered loans | 8,587 | ' | 19,136 | ' | ' | ' |
Real estate-commercial | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | 13,508 | ' | 22,918 | ' | ' | ' |
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | ' | 0 | ' | ' | ' |
Ending allowance on covered loans | 13,508 | ' | 22,918 | ' | ' | ' |
Real estate-residential | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | 993 | ' | 2,599 | ' | ' | ' |
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | ' | 0 | ' | ' | ' |
Ending allowance on covered loans | 993 | ' | 2,599 | ' | ' | ' |
Installment | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending allowance on loans acquired with deteriorated credit quality (ASC 310-30) | 171 | ' | 537 | ' | ' | ' |
Ending allowance on acquired loans outside the scope of ASC 310-30 | 0 | ' | 0 | ' | ' | ' |
Ending allowance on covered loans | $171 | ' | $537 | ' | ' | ' |
ALLOWANCE_FOR_LOAN_AND_LEASE_L6
ALLOWANCE FOR LOAN AND LEASE LOSSES - Allowance for Loan and Lease Losses on Covered Loans for the Current and Comparable Quarter and Year-to-Date (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Receivables [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $32,961 | $48,327 | $45,190 | $42,835 |
Provision for loan and lease losses | 5,293 | 6,622 | 6,052 | 25,620 |
Loans charged-off | -21,009 | -9,058 | -35,374 | -24,339 |
Recoveries | 6,014 | 3,004 | 7,391 | 4,779 |
Balance at end of period | $23,259 | $48,895 | $23,259 | $48,895 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax expense | $7,645 | $8,913 | $20,451 | $27,249 |
Effective tax rate | 33.90% | 35.40% | 31.50% | 34.80% |
EMPLOYEE_BENEFIT_PLANS_Additio
EMPLOYEE BENEFIT PLANS - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' | ' |
Pension Contributions | ' | ' | ' | ' | $0 |
Pension settlement charges | -1,396,000 | 0 | -5,712,000 | 0 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | ' | ' | -19,242,000 | -1,814,000 | ' |
Pension Expense | 1,124,000 | -107,000 | 5,309,000 | -392,000 | ' |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | ' | ' | $0 | ' | ' |
EMPLOYEE_BENEFIT_PLANS_EMPLOYE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS - Employee benefit plan amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Service cost | $916 | $894 | $2,789 | $2,559 |
Interest cost | 566 | 606 | 1,752 | 1,986 |
Expected return on plan assets | -2,231 | -2,281 | -6,755 | -6,751 |
Amortization of prior service cost | -105 | -106 | -317 | -316 |
Defined Benefit Plan, Amortization of Gains (Losses) | 582 | 780 | 2,128 | 2,130 |
Pension settlement charges | 1,396 | 0 | 5,712 | 0 |
Net periodic benefit cost (income) | $1,124 | ($107) | $5,309 | ($392) |
FAIR_VALUE_DISCLOSURES_Estimat
FAIR VALUE DISCLOSURES - Estimated Fair Values of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | $16,044 | $26,423 |
Financial assets | ' | ' |
Investment securities held-to-maturity | 669,093 | 770,755 |
Other investments | 75,945 | 71,492 |
Covered loans | 495,265 | 702,926 |
FDIC indemnification asset | 78,132 | 119,607 |
Deposits | ' | ' |
Noninterest-bearing | 1,141,016 | 1,102,774 |
Savings | 1,593,895 | 1,623,614 |
Time | 926,029 | 1,068,637 |
Carrying value | ' | ' |
Financial assets | ' | ' |
Cash and short-term investments | 188,112 | 158,843 |
Investment securities held-to-maturity | 669,093 | 770,755 |
Other investments | 75,945 | 71,492 |
Loans held for sale | 10,704 | 16,256 |
Loans - excluding covered loans | 3,385,402 | 3,131,287 |
Covered loans | 495,265 | 702,926 |
FDIC indemnification asset | 78,132 | 119,607 |
Deposits | ' | ' |
Noninterest-bearing | 1,141,016 | 1,102,774 |
Interest-bearing demand | 1,068,067 | 1,160,815 |
Savings | 1,593,895 | 1,623,614 |
Time | 926,029 | 1,068,637 |
Total deposits | 4,729,007 | 4,955,840 |
Short-term borrowings | 623,672 | 624,570 |
Long-term debt | 61,088 | 75,202 |
Fair value | ' | ' |
Financial assets | ' | ' |
Cash and short-term investments | 188,112 | 158,843 |
Investment securities held-to-maturity | 661,685 | 778,474 |
Other investments | 75,945 | 71,492 |
Loans held for sale | 10,704 | 16,256 |
Loans - excluding covered loans | 3,379,595 | 3,145,120 |
Covered loans | 504,781 | 713,797 |
FDIC indemnification asset | 57,978 | 106,380 |
Deposits | ' | ' |
Noninterest-bearing | 1,141,016 | 1,102,774 |
Interest-bearing demand | 1,068,067 | 1,160,815 |
Savings | 1,593,895 | 1,623,614 |
Time | 921,933 | 1,072,201 |
Total deposits | 4,724,911 | 4,959,404 |
Short-term borrowings | 623,672 | 624,570 |
Long-term debt | 63,338 | 78,941 |
Fair Value, Inputs, Level 1 [Member] | Fair value | ' | ' |
Financial assets | ' | ' |
Cash and short-term investments | 188,112 | 158,843 |
Investment securities held-to-maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans - excluding covered loans | 0 | 0 |
Covered loans | 0 | 0 |
FDIC indemnification asset | 0 | 0 |
Deposits | ' | ' |
Noninterest-bearing | 0 | 0 |
Interest-bearing demand | 0 | 0 |
Savings | 0 | 0 |
Time | 0 | 0 |
Total deposits | 0 | 0 |
Short-term borrowings | 623,672 | 624,570 |
Long-term debt | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair value | ' | ' |
Financial assets | ' | ' |
Cash and short-term investments | 0 | 0 |
Investment securities held-to-maturity | 661,685 | 778,474 |
Other investments | 75,945 | 71,492 |
Loans held for sale | 10,704 | 16,256 |
Loans - excluding covered loans | 0 | 0 |
Covered loans | 0 | 0 |
FDIC indemnification asset | 0 | 0 |
Deposits | ' | ' |
Noninterest-bearing | 1,141,016 | 1,102,774 |
Interest-bearing demand | 1,068,067 | 1,160,815 |
Savings | 1,593,895 | 1,623,614 |
Time | 921,933 | 1,072,201 |
Total deposits | 4,724,911 | 4,959,404 |
Short-term borrowings | 0 | 0 |
Long-term debt | 63,338 | 78,941 |
Fair Value, Inputs, Level 3 [Member] | Fair value | ' | ' |
Financial assets | ' | ' |
Cash and short-term investments | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans - excluding covered loans | 3,379,595 | 3,145,120 |
Covered loans | 504,781 | 713,797 |
FDIC indemnification asset | 57,978 | 106,380 |
Deposits | ' | ' |
Noninterest-bearing | 0 | 0 |
Interest-bearing demand | 0 | 0 |
Savings | 0 | 0 |
Time | 0 | 0 |
Total deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | $0 | $0 |
FAIR_VALUE_DISCLOSURES_Summary
FAIR VALUE DISCLOSURES - Summary of Financial Assets and Liabilities Measure at Fair Value on a Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Derivatives | $14,848 | $24,135 |
Available-for-sale investment securities | 854,747 | 1,032,096 |
Liabilities | ' | ' |
Derivatives | 16,044 | 26,423 |
Fair Value, Measurements, Recurring | ' | ' |
Assets | ' | ' |
Derivatives | 0 | 0 |
Available-for-sale investment securities | 854,747 | 1,032,096 |
Total | 854,747 | 1,032,096 |
Liabilities | ' | ' |
Derivatives | 1,196 | 2,517 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | ' | ' |
Assets | ' | ' |
Derivatives | 0 | 0 |
Available-for-sale investment securities | 185 | 144 |
Total | 185 | 144 |
Liabilities | ' | ' |
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | ' | ' |
Assets | ' | ' |
Derivatives | 14,848 | 24,135 |
Available-for-sale investment securities | 854,562 | 1,031,952 |
Total | 869,410 | 1,056,087 |
Liabilities | ' | ' |
Derivatives | 16,044 | 26,652 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | ' | ' |
Assets | ' | ' |
Derivatives | 0 | 0 |
Available-for-sale investment securities | 0 | 0 |
Total | 0 | 0 |
Liabilities | ' | ' |
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Netting Adjustments | ' | ' |
Assets | ' | ' |
Derivatives | -14,848 | -24,135 |
Available-for-sale investment securities | 0 | 0 |
Total | -14,848 | -24,135 |
Liabilities | ' | ' |
Derivatives | ($14,848) | ($24,135) |
FAIR_VALUE_DISCLOSURES_Summary1
FAIR VALUE DISCLOSURES - Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) (Fair Value, Measurements, Nonrecurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements Using Level 1 | ' | ' |
Assets | ' | ' |
Impaired loans | $0 | $0 |
Other Real Estate Owned, Fair Value Disclosure | 0 | 0 |
Covered 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 |
Covered Other Real Estate Owned, Fair Value Disclosure | 0 | 0 |
Fair Value Measurements Using Level 3 | ' | ' |
Assets | ' | ' |
Impaired loans | 21,390 | 19,564 |
Other Real Estate Owned, Fair Value Disclosure | 6,346 | 5,651 |
Covered Other Real Estate Owned, Fair Value Disclosure | $7,722 | $14,059 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income (Loss), before Reclassification Adjustments and Tax [Abstract] | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities | ' | ' | ($34,212) | ' | ' | ' |
Unrealized gain (loss) on cash flow hedges | ' | ' | -298 | ' | ' | ' |
Retirement obligation | ' | ' | 11,719 | ' | ' | ' |
Foreign Currency Translation | ' | ' | -21 | ' | ' | ' |
Total | ' | ' | -22,812 | ' | ' | ' |
Other Comprehensive Income (Loss) Reclassifications before Tax [Abstract] | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities | ' | ' | 1,724 | ' | ' | ' |
Unrealized gain (loss) on derivatives | ' | ' | -295 | ' | ' | ' |
Retirement obligation | ' | ' | -7,523 | ' | ' | ' |
Foreign Currency Translation | ' | ' | 0 | ' | ' | ' |
Total | ' | ' | -6,094 | ' | ' | ' |
Transactions Pre-tax | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities | ' | ' | -35,936 | 2,671 | ' | ' |
Unrealized gain (loss) on derivatives | ' | ' | -3 | -292 | ' | ' |
Unfunded pension obligation | ' | ' | 19,242 | 1,814 | ' | ' |
Foreign currency translation | ' | ' | -21 | 26 | ' | ' |
Total | ' | ' | -16,718 | 4,219 | ' | ' |
Transactions Tax-effect | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities | ' | ' | 13,366 | -1,009 | ' | ' |
Unrealized gain (loss) on derivatives | ' | ' | 1 | 110 | ' | ' |
Unfunded pension obligation | ' | ' | -7,266 | -685 | ' | ' |
Foreign currency translation | ' | ' | 0 | 0 | ' | ' |
Total | ' | ' | 6,101 | -1,584 | ' | ' |
Transactions Net of tax | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities | -4,003 | -934 | -22,570 | 1,662 | ' | ' |
Unrealized gain (loss) on derivatives | -818 | -182 | -2 | -182 | ' | ' |
Retirement obligation | 1,166 | 419 | 11,976 | 1,129 | ' | ' |
Foreign currency translation | 6 | 14 | -21 | 26 | ' | ' |
Other comprehensive (loss) income | -3,649 | -683 | -10,617 | 2,635 | ' | ' |
Balances Net of tax | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities | -9,768 | 14,331 | -9,768 | 14,331 | 12,802 | 12,669 |
Unrealized gain (loss) on cash flow hedges | -145 | -182 | -145 | -182 | -143 | 0 |
Retirement obligation | -19,362 | -33,007 | -19,362 | -33,007 | -31,338 | -34,136 |
Foreign currency translation | -19 | 3 | -19 | 3 | 2 | -23 |
Total | ($29,294) | ($18,855) | ($29,294) | ($18,855) | ($18,677) | ($21,490) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME AMOUNT RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Accumulated Comprehensive income reclassified from AOCI [Line Items] | ' | ' | ' | ' |
Gains on sales of investment securities | $0 | $2,617 | $1,724 | $2,617 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 105 | 106 | 317 | 316 |
Defined Benefit Plan, Amortization of Gains (Losses) | -582 | -780 | -2,128 | -2,130 |
Pension settlement charges | -1,396 | 0 | -5,712 | 0 |
Other Comprehensive Income, Reclassification, Amortization of Defined Benefit Plans items, Pre-tax | ' | ' | -7,523 | ' |
Total | ' | ' | -6,094 | ' |
Deposits [Member] | Cash Flow Hedging [Member] | Interest Expense | Interest Rate Contracts | ' | ' | ' | ' |
Other Accumulated Comprehensive income reclassified from AOCI [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ($295) | ' |
EARNINGS_PER_COMMON_SHARE_Comp
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator for basic and diluted earnings per share -income available to common shareholders: | ' | ' | ' | ' |
Net income | $14,911 | $16,242 | $44,564 | $51,038 |
Denominator for basic earnings per share - weighted average shares | 57,201,390 | 57,976,943 | 57,309,934 | 57,902,102 |
Effect of dilutive securities - | ' | ' | ' | ' |
Employee stock awards | 698,194 | 842,833 | 725,862 | 905,210 |
Warrants | 113,004 | 120,403 | 107,576 | 123,258 |
Denominator for diluted earnings per share - adjusted weighted average shares | 58,012,588 | 58,940,179 | 58,143,372 | 58,930,570 |
Basic | $0.26 | $0.28 | $0.78 | $0.88 |
Diluted | $0.26 | $0.28 | $0.77 | $0.87 |
EARNINGS_PER_COMMON_SHARE_Addi
EARNINGS PER COMMON SHARE - Additional Information (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Investment Warrants, Exercise Price | 12.12 | ' |
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 | 596,666 | 354,876 |
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 | 465,117 | 465,117 |