Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 07, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FFBC | |
Entity Registrant Name | FIRST FINANCIAL BANCORP /OH/ | |
Entity Central Index Key | 708,955 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 97,901,046 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 216,667 | $ 150,650 |
Interest-bearing deposits with other banks | 37,915 | 33,974 |
Investment securities available-for-sale, at fair value (amortized cost $2,677,257 at June 30, 2018 and $1,348,227 at December 31, 2017) | 2,654,909 | 1,349,408 |
Investment securities held-to-maturity (fair value $435,785 at June 30, 2018 and $653,101 at December 31, 2017) | 443,957 | 654,008 |
Other investments | 95,004 | 53,140 |
Loans held for sale | 15,821 | 11,502 |
Loans | ||
Commercial | 2,440,596 | 1,912,743 |
Lease financing | 96,198 | 89,347 |
Real estate - construction | 555,468 | 467,730 |
Real estate-commercial | 3,888,993 | 2,490,091 |
Real estate-residential | 918,904 | 471,391 |
Home equity | 835,031 | 493,604 |
Installment | 100,726 | 41,586 |
Credit card | 48,665 | 46,691 |
Total loans and leases | 8,884,581 | 6,013,183 |
Allowance for loan and lease losses | 54,076 | 54,021 |
Net loans and leases | 8,830,505 | 5,959,162 |
Premises and equipment | 223,950 | 125,036 |
Goodwill and other intangibles | 934,656 | 209,379 |
Accrued interest and other assets | 466,783 | 350,664 |
Total assets | 13,920,167 | 8,896,923 |
Deposits | ||
Interest-bearing | 2,440,088 | 1,453,463 |
Savings | 3,087,683 | 2,462,420 |
Time | 2,104,044 | 1,317,105 |
Total interest-bearing deposits | 7,631,815 | 5,232,988 |
Noninterest-bearing | 2,471,932 | 1,662,058 |
Total deposits | 10,103,747 | 6,895,046 |
Federal funds purchased and securities sold under agreements to repurchase | 88,070 | 72,265 |
Federal Home Loan Bank short-term borrowings | 1,100,233 | 742,300 |
Total short-term borrowings | 1,188,303 | 814,565 |
Long-term debt | 469,423 | 119,654 |
Total borrowed funds | 1,657,726 | 934,219 |
Accrued interest and other liabilities | 145,757 | 136,994 |
Total liabilities | 11,907,230 | 7,966,259 |
SHAREHOLDERS' EQUITY | ||
Common stock - no par value Authorized - 160,000,000 shares Issued - 101,281,794 shares in 2018 and 68,730,731 shares in 2017 | 1,632,572 | 573,109 |
Retained earnings | 533,319 | 491,847 |
Accumulated other comprehensive loss | (43,008) | (20,390) |
Treasury stock, at cost, 6,376,897 shares in 2018 and 6,661,644 shares in 2017 | (109,946) | (113,902) |
Total shareholders' equity | 2,012,937 | 930,664 |
Total liabilities and shareholders' equity | $ 13,920,167 | $ 8,896,923 |
CONSOLIDATED BALANCE SHEETS CON
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 2,677,257 | $ 1,348,227 |
Held-to-maturity Securities, Fair Value | $ 435,785 | $ 653,101 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 160,000,000 | 160,000,000 |
Common Stock, Shares, Issued | 104,281,794 | 68,730,731 |
Treasury Stock, Shares | 6,376,897 | 6,661,644 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | ||||
Loans, including fees | $ 122,290 | $ 67,748 | $ 197,210 | $ 134,616 |
Investment securities | ||||
Taxable | 20,844 | 12,598 | 34,514 | 24,206 |
Tax-exempt | 4,068 | 1,457 | 5,725 | 2,810 |
Total interest on investment securities | 24,912 | 14,055 | 40,239 | 27,016 |
Other earning assets | 177 | (1,014) | 284 | (2,015) |
Total interest income | 147,379 | 80,789 | 237,733 | 159,617 |
Interest expense | ||||
Deposits | 14,794 | 8,679 | 25,092 | 15,604 |
Short-term borrowings | 4,132 | 2,051 | 6,795 | 3,483 |
Long-term borrowings | 4,474 | 1,539 | 6,055 | 3,078 |
Total interest expense | 23,400 | 12,269 | 37,942 | 22,165 |
Net interest income | 123,979 | 68,520 | 199,791 | 137,452 |
Provision for loan and lease losses | 3,735 | 467 | 6,038 | 834 |
Net interest income after provision for loan and lease losses | 120,244 | 68,053 | 193,753 | 136,618 |
Noninterest income | ||||
Service charges on deposit accounts | 9,568 | 4,772 | 14,607 | 9,416 |
Trust and wealth management fees | 3,697 | 3,405 | 7,651 | 7,152 |
Bankcard income | 5,343 | 3,501 | 8,737 | 6,636 |
Client derivative fees | 1,463 | 1,489 | 3,220 | 2,592 |
Net gain from sales of loans | 2,316 | 1,327 | 2,904 | 2,543 |
Net gain (loss) on sales of investment securities | (30) | 838 | (30) | 1,354 |
Other | 5,899 | 2,122 | 8,105 | 5,125 |
Total noninterest income | 28,256 | 17,454 | 45,194 | 34,818 |
Noninterest expenses | ||||
Salaries and employee benefits | 55,531 | 31,544 | 86,633 | 63,294 |
Net occupancy | 6,631 | 4,302 | 11,128 | 8,817 |
Furniture and equipment | 5,298 | 2,136 | 7,338 | 4,313 |
Data processing | 14,304 | 3,501 | 17,976 | 6,799 |
Marketing | 2,644 | 982 | 3,445 | 1,492 |
Communication | 1,118 | 468 | 1,577 | 915 |
Professional services | 5,659 | 1,469 | 7,857 | 3,227 |
State intangible tax | 1,078 | 721 | 1,843 | 1,442 |
FDIC assessments | 1,323 | 1,018 | 2,217 | 1,950 |
Loss (gain) - other real estate owned | (283) | 162 | (206) | 186 |
Other | 9,452 | 5,253 | 15,235 | 10,166 |
Total noninterest expenses | 102,755 | 51,556 | 155,043 | 102,601 |
Income before income taxes | 45,745 | 33,951 | 83,904 | 68,835 |
Income tax expense | 9,327 | 11,215 | 16,980 | 21,685 |
Net income | $ 36,418 | $ 22,736 | $ 66,924 | $ 47,150 |
Earnings per common share | ||||
Basic | $ 0.37 | $ 0.37 | $ 0.84 | $ 0.77 |
Diluted | 0.37 | 0.37 | 0.83 | 0.76 |
Cash dividends declared per share | $ 0.19 | $ 0.17 | $ 0.38 | $ 0.34 |
Average common shares outstanding - basic | 97,347,533 | 61,543,478 | 79,599,709 | 61,471,347 |
Average common shares outstanding - diluted | 98,432,072 | 62,234,022 | 80,629,495 | 62,187,473 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 36,418 | $ 22,736 | $ 66,924 | $ 47,150 |
Other comprehensive (loss) income, net of tax | ||||
Unrealized gain (loss) on investment securities arising during the period | (8,978) | 4,076 | (18,808) | 5,563 |
Change in retirement obligation | 494 | 213 | 817 | 402 |
Unrealized gain (loss) on derivatives | 159 | 128 | 315 | 256 |
Other comprehensive income (loss) | (8,325) | 4,417 | (17,676) | 6,221 |
Comprehensive income | $ 28,093 | $ 27,153 | $ 49,248 | $ 53,371 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock |
Beginning Balances (in shares) at Dec. 31, 2016 | 68,730,731 | (6,751,179) | |||
Beginning Balances at Dec. 31, 2016 | $ 865,224 | $ 570,382 | $ 437,188 | $ (28,443) | $ (113,903) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 47,150 | 47,150 | |||
Other comprehensive income (loss) | 6,221 | 6,221 | |||
Cash dividends declared : | |||||
Common stock at $0.38 per share in 2018 and $0.34 per share in 2017 | (21,088) | (21,088) | |||
Stock Issued During Period, Shares, Other | 1,484 | ||||
Adjustments to Additional Paid in Capital, Other | 0 | (25) | $ 25 | ||
Exercise of stock options, net of shares purchased (in shares) | 39,062 | ||||
Exercise of stock options, net of shares purchased | 198 | (462) | $ 660 | ||
Restricted stock awards, net of forfeitures (in shares) | 120,973 | ||||
Restricted stock awards, net of forfeitures | (2,554) | (3,559) | $ 1,005 | ||
Share-based compensation expense | 2,966 | $ 2,966 | |||
Ending Balances (in shares) at Jun. 30, 2017 | 68,730,731 | (6,589,660) | |||
Ending Balances at Jun. 30, 2017 | 898,117 | $ 569,302 | 463,250 | (22,222) | $ (112,213) |
Beginning Balances (in shares) at Dec. 31, 2017 | 68,730,731 | (6,661,644) | |||
Beginning Balances at Dec. 31, 2017 | 930,664 | $ 573,109 | 491,847 | (20,390) | $ (113,902) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 66,924 | 66,924 | |||
Reclassification from AOCI, Current Period, Tax | 0 | 4,942 | (4,942) | ||
Other comprehensive income (loss) | (17,676) | (17,676) | |||
Cash dividends declared : | |||||
Common stock at $0.38 per share in 2018 and $0.34 per share in 2017 | (30,394) | (30,394) | |||
Stock Issued During Period, Shares, New Issues | 35,551,063 | ||||
Stock Issued During Period, Value, Acquisitions | 1,045,876 | $ 1,045,876 | |||
Stock Options and Warrants Acquired And Converted Pursuant To Acquisition | 16,037 | 16,037 | |||
Stock Issued During Period, Shares, Other | 53,907 | ||||
Adjustments to Additional Paid in Capital, Other | 0 | (922) | $ 922 | ||
Exercise of stock options, net of shares purchased (in shares) | 31,554 | ||||
Exercise of stock options, net of shares purchased | 267 | (275) | $ 542 | ||
Restricted stock awards, net of forfeitures (in shares) | 199,286 | ||||
Restricted stock awards, net of forfeitures | (2,207) | (4,699) | $ 2,492 | ||
Share-based compensation expense | 3,446 | $ 3,446 | |||
Ending Balances (in shares) at Jun. 30, 2018 | 104,281,794 | (6,376,897) | |||
Ending Balances at Jun. 30, 2018 | $ 2,012,937 | $ 1,632,572 | $ 533,319 | $ (43,008) | $ (109,946) |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Common Stock, Dividends, Per Share, Declared | $ 0.19 | $ 0.17 | $ 0.38 | $ 0.34 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Operating activities | ||||
Net income | $ 36,418 | $ 66,924 | $ 47,150 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for loan and lease losses | 6,038 | 834 | ||
Depreciation and amortization | 10,208 | 6,354 | ||
Stock-based compensation expense | 3,446 | 2,966 | ||
Pension expense (income) | 338 | 182 | (637) | |
Net amortization (accretion) on investment securities | 5,178 | 4,998 | ||
Net (gains) losses on sales of investment securities | 30 | (1,354) | ||
Originations of loans held for sale | (54,041) | (75,543) | ||
Net gains from sales of loans held for sale | (2,316) | (2,904) | (2,543) | |
Proceeds from sales of loans held for sale | 50,004 | 78,771 | ||
Deferred income taxes | (12,104) | 3,987 | ||
Decrease (increase) cash surrender value of life insurance | (398) | 116 | ||
Decrease (increase) in interest receivable | (565) | (1,397) | ||
Decrease (increase) in indemnification asset | (1,900) | (2,418) | ||
(Decrease) increase in interest payable | 2,596 | 148 | ||
Decrease (increase) in other assets | 26,646 | (18,472) | ||
(Decrease) increase in other liabilities | 10,724 | (5,571) | ||
Net cash provided by (used in) operating activities | 114,660 | 41,993 | ||
Investing activities | ||||
Proceeds from sales of securities available-for-sale | 216,197 | 125,606 | ||
Proceeds from calls, paydowns and maturities of securities available-for-sale | 161,733 | 102,893 | ||
Purchases of securities available-for-sale | (444,686) | (464,543) | ||
Proceeds from calls, paydowns and maturities of securities held-to-maturity | 26,834 | 72,078 | ||
Payments to Acquire Held-to-maturity Securities | 14,014 | 14,441 | ||
Net decrease (increase) in interest-bearing deposits with other banks | (3,941) | 52,611 | ||
Net decrease (increase) in loans and leases | (83,617) | (121,944) | ||
Proceeds from disposal of other real estate owned | 618 | 2,840 | 2,292 | |
Purchases of premises and equipment | (13,662) | (4,247) | ||
Net cash (paid) acquired from business combinations | 64,887 | 0 | ||
Net cash paid for branch divestitures | (41,197) | |||
Net cash provided by (used in) investing activities | (128,626) | (249,695) | ||
Financing activities | ||||
Net (decrease) increase in total deposits | (55,757) | (56,879) | ||
Net (decrease) increase in short-term borrowings | 178,143 | 280,421 | ||
Payments of long-term debt | 51,985 | 0 | ||
Proceeds from FHLB borrowings | 50,000 | 0 | ||
Cash dividends paid on common stock | (40,685) | (20,243) | ||
Proceeds from exercise of stock options | 267 | 283 | ||
Net cash provided by (used in) financing activities | 79,983 | 203,582 | ||
Cash and due from banks: | ||||
Change in cash and due from banks | 66,017 | (4,120) | ||
Cash and due from banks at beginning of period | 150,650 | 121,598 | $ 121,598 | |
Cash and due from banks at end of period | 216,667 | 216,667 | 117,478 | 150,650 |
Supplemental schedule for investing activities | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Assets, Net Of Purchase Consideration | 3,328,802 | 3,328,802 | 0 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 4,007,743 | 4,007,743 | 0 | |
Goodwill | $ 678,941 | $ 0 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly-owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications of prior periods' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings. The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. These estimates, assumptions and judgments are inherently subjective and may be susceptible to significant change. Actual realized amounts could differ materially from these 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 Form 10-K for the year ended December 31, 2017 . 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 it is suggested that these interim statements be read in conjunction with 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, 2017 has been derived from the audited financial statements in the Company’s 2017 |
RECENTLY ADOPTED AND ISSUED ACC
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2018 | |
Recently Adopted and Issued Accounting Standards [Abstract] | |
Recently Adopted and Issued Accounting Standards Disclosure [Text Block] | RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS In May 2014, the FASB issued an update (ASU 2014-09, Revenue from Contracts with Customers) which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the revised standard, an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. Certain of the ASU’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities, such as sales of property, plant, and equipment; real estate; or intangible assets. The ASU also requires significantly expanded disclosures about revenue recognition. For further detail, see Note 13 – Revenue Recognition. In January 2016, the FASB issued an update (ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities) which requires entities to measure many equity investments at fair value and recognize changes in fair value in net income. This update does not apply to equity investments that result in consolidation, those accounted for under the equity method and certain others, and will eliminate use of the available for sale classification for equity securities while providing a new measurement alternative for equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient. This update also requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The guidance in this ASU became effective in the first quarter of 2018 and did not have a material impact on the Consolidated Financial Statements. In accordance with the guidance, the Company measured the fair value of its financial instruments as of June 30, 2018 using an exit price notion. For further detail, see Note 15 – Fair Value Disclosures. In February 2016, the FASB issued an update (ASU 2016-02, Leases) which requires lessees to record most leases on their balance sheet and recognize leasing expenses in the income statement. Operating leases, except for short-term leases that are subject to an accounting policy election, will be recorded on the balance sheet for lessees by establishing a lease liability and corresponding right-of-use asset. The guidance in this ASU will become effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. Given operating leases outstanding as of June 30, 2018 , First Financial does not expect this ASU to have a material impact on the income statement, but does anticipate an increase in the Company's assets and liabilities. Decisions to repurchase, modify or renew leases prior to the implementation date will impact this level of materiality. In June 2016, the FASB issued an update (ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments) which significantly changes how entities are required to measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This update will replace the current incurred loss approach for estimating credit losses with an expected loss model for instruments measured at amortized cost, including loans and leases. Expected credit losses are required to be based on amortized cost and reflect losses expected over the remaining contractual life of the asset. Management is expected to consider any available information relevant to assessing the collectibility of contractual cash flows, such as information about past events, current conditions, voluntary prepayments and reasonable and supportable forecasts, when developing expected credit loss estimates. In addition to the new framework for calculating the ALLL, this update requires allowances for available-for-sale debt securities rather than a reduction of the security's carrying amount under the current other-than-temporary impairment model. This update also simplifies the accounting model for purchased credit-impaired debt securities and loans and will require new and updated footnote disclosures. The guidance in this ASU will become effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for all entities for interim and annual reporting periods beginning after December 15, 2018. First Financial has formed an internal management committee and engaged a third party vendor to assist with the transition to the guidance set forth in this update. The committee is currently evaluating the impact of this update on First Financial’s Consolidated Financial Statements. In August 2016, the FASB issued an update (ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments) which may change how an entity classifies certain cash receipts and cash payments on its statement of cash flows to reduce diversity in practice. The update also provides guidance on when an entity should separate cash flows and classify them into more than one class and when an entity should classify the aggregate of those cash flows into a single class based on the predominance principle. The guidance in this ASU became effective in the first quarter of 2018 and did not have a material impact on the Consolidated Financial Statements. In January 2017, the FASB issued an update (ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment) which simplifies the subsequent measurement of goodwill by eliminating Step 2 from goodwill impairment testing. This update requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with any loss recognized not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, the update requires consideration of the income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable, and eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. First Financial early adopted the provisions set forth in this update in 2017. Adoption of this update did not have a material impact on First Financial's Consolidated Financial Statements. In March 2017, the FASB issued an update (ASU 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of the Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost) which requires disaggregation of the service cost component from the other components of net benefit cost. This update also provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allows only the service cost component of net benefit cost to be eligible for capitalization. The guidance in this ASU became effective in the first quarter of 2018 and did not have a material impact on the Consolidated Financial Statements. In March 2017, the FASB issued an update (ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities) which amends the amortization period for certain purchased callable debt securities held at a premium and shortens the amortization period for the premium to the earliest call date rather than as an adjustment of yield over the contractual life of the instrument. This update more closely aligns the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities, as in most cases, market participants price securities to the call date that produces the worst yield when the coupon is above current market rates (that is, the security is trading at a premium) and price securities to maturity when the coupon is below market rates (that is, the security is trading at a discount) in anticipation that the borrower will act in its economic best interest in an attempt to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. The guidance in this ASU will become effective for reporting periods, beginning after December 15, 2018, with early adoption permitted. First Financial is currently evaluating the impact of this update on its Consolidated Financial Statements. In May 2017, the FASB issued an update (ASU 2017-09, Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting), which provides clarity and reduces the diversity in practice, cost and complexity when accounting for a change to the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718 clarifying that an entity will not apply modification accounting to a share-based payment award if the award's fair value (or calculated value or intrinsic value), vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. The guidance in this ASU became effective in the first quarter of 2018 and did not have a material impact on the Consolidated Financial Statements. In August 2017, the FASB issued an update (ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities) to better align financial reporting for hedging activities with the economic objectives of those activities. This update aligns certain aspects of hedge documentation, effectiveness assessments, accounting and disclosures, and expands permissible hedge strategies as of the date of adoption. The guidance in this ASU will become effective for reporting periods beginning after December 15, 2018, with early adoption permitted, and will require a modified retrospective transition method with recognition of the cumulative effect of the change on the opening balance of each affected component of equity. Amended disclosures will be required prospectively. First Financial is currently evaluating the impact of this update on its Consolidated Financial Statements. In February 2018, the FASB issued an update (ASU 2018-02, Income statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminated the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. The amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, and the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not effected. The amendments in this update also require certain disclosures about stranded tax effects. The guidance in this ASU will become effective for reporting periods beginning after December 15, 2018, with early adoption permitted, and is applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. First Financial early adopted the provisions set forth in this update in the first quarter of 2018, and as a result, reclassified $4.9 million |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS For the three and six months ended June 30, 2018, proceeds on the sale of $216.2 million of available-for-sale securities, and resulted in insignificant gross gains and losses. For the three months ended June 30, 2017, proceeds on the sale of $103.4 million of available-for-sale securities resulted in gains of $1.0 million and losses of $0.1 million . For the six months ended June 30, 2017 , proceeds on the sale of $125.6 million of available-for-sale securities resulted in gains of $1.5 million and losses of $0.1 million . In addition to the sale of certain securities during the second quarter 2018, First Financial reclassified $367.9 million of held-to-maturity securities to available-for-sale to align with post-merger investment strategies. The following is a summary of held-to-maturity and available-for-sale investment securities as of June 30, 2018 : Held-to-maturity Available-for-sale (Dollars in thousands) Amortized Unrecognized gain Unrecognized loss Fair Amortized cost Unrealized gain Unrealized loss Fair U.S. Treasuries $ 0 $ 0 $ 0 $ 0 $ 98 $ 0 $ (3 ) $ 95 Securities of U.S. government agencies and corporations 0 0 0 0 34,896 84 (452 ) 34,528 Mortgage-backed securities - residential 31,857 0 (1,515 ) 30,342 644,358 1,314 (10,152 ) 635,520 Mortgage-backed securities - commercial 152,906 13 (5,503 ) 147,416 290,930 106 (5,059 ) 285,977 Collateralized mortgage obligations 13,982 0 (675 ) 13,307 873,923 965 (10,313 ) 864,575 Obligations of state and other political subdivisions 245,212 936 (1,428 ) 244,720 250,993 2,214 (1,910 ) 251,297 Asset-backed securities 0 0 0 0 492,702 879 (1,354 ) 492,227 Other securities 0 0 0 0 89,357 1,938 (605 ) 90,690 Total $ 443,957 $ 949 $ (9,121 ) $ 435,785 $ 2,677,257 $ 7,500 $ (29,848 ) $ 2,654,909 The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2017 : Held-to-maturity Available-for-sale (Dollars in thousands) Amortized Unrecognized gain Unrecognized Fair Amortized Unrealized Unrealized Fair U.S. Treasuries $ 0 $ 0 $ 0 $ 0 $ 98 $ 0 $ (1 ) $ 97 Securities of U.S. government agencies and corporations 11,168 0 (76 ) 11,092 15,695 220 0 15,915 Mortgage-backed securities - residential 162,093 2,042 (1,535 ) 162,600 290,793 849 (2,599 ) 289,043 Mortgage-backed securities - commercial 255,027 1,372 (3,000 ) 253,399 150,356 164 (1,417 ) 149,103 Collateralized mortgage obligations 143,545 354 (1,602 ) 142,297 306,095 1,158 (1,861 ) 305,392 Obligations of state and other political subdivisions 82,175 1,804 (266 ) 83,713 124,269 2,162 (676 ) 125,755 Asset-backed securities 0 0 0 0 377,655 1,628 (306 ) 378,977 Other securities 0 0 0 0 83,266 2,147 (287 ) 85,126 Total $ 654,008 $ 5,572 $ (6,479 ) $ 653,101 $ 1,348,227 $ 8,328 $ (7,147 ) $ 1,349,408 The following table provides a summary of investment securities by contractual maturity as of June 30, 2018 , except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments. Held-to-maturity Available-for-sale (Dollars in thousands) Amortized cost Fair value Amortized cost Fair value By Contractual Maturity: Due in one year or less $ 0 $ 0 $ 4,125 $ 4,123 Due after one year through five years 275 279 70,801 70,802 Due after five years through ten years 15,799 15,778 140,577 142,222 Due after ten years 229,138 228,663 159,841 159,463 Mortgage-backed securities - residential 31,857 30,342 644,358 635,520 Mortgage-backed securities - commercial 152,906 147,416 290,930 285,977 Collateralized mortgage obligations 13,982 13,307 873,923 864,575 Asset-backed securities 0 0 492,702 492,227 Total $ 443,957 $ 435,785 $ 2,677,257 $ 2,654,909 Unrealized gains and losses on debt securities are generally due to fluctuations in 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 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 June 30, 2018 or December 31, 2017 . As of June 30, 2018 , the Company's investment securities portfolio consisted of 1,385 securities, of which 656 were in an unrealized loss position. As of December 31, 2017, the Company's investment securities portfolio consisted of 775 securities, of which 237 were in an unrealized loss position. The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position, aggregated by investment category and the length of time the individual securities have been in a continuous loss position: June 30, 2018 Less than 12 months 12 months or more Total (Dollars in thousands) Fair value Unrealized loss Fair Unrealized Fair Unrealized U.S. Treasuries $ 95 $ (3 ) $ 0 $ 0 $ 95 $ (3 ) Securities of U.S. Government agencies and corporations 19,890 (311 ) 5,379 (141 ) 25,269 (452 ) Mortgage-backed securities - residential 488,725 (5,650 ) 129,218 (6,017 ) 617,943 (11,667 ) Mortgage-backed securities - commercial 278,366 (5,414 ) 88,624 (5,148 ) 366,990 (10,562 ) Collateralized mortgage obligations 628,667 (6,910 ) 99,142 (4,078 ) 727,809 (10,988 ) Obligations of state and other political subdivisions 186,269 (2,195 ) 27,441 (1,143 ) 213,710 (3,338 ) Asset-backed securities 219,064 (1,215 ) 13,591 (139 ) 232,655 (1,354 ) Other securities 17,299 (226 ) 7,571 (379 ) 24,870 (605 ) Total $ 1,838,375 $ (21,924 ) $ 370,966 $ (17,045 ) $ 2,209,341 $ (38,969 ) December 31, 2017 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) value loss value loss value loss U.S. Treasuries $ 97 $ (1 ) $ 0 $ 0 $ 97 $ (1 ) Securities of U.S. Government agencies and corporations 11,092 (76 ) 0 0 11,092 (76 ) Mortgage-backed securities - residential 175,183 (1,109 ) 108,782 (3,025 ) 283,965 (4,134 ) Mortgage-backed securities - commercial 132,818 (1,713 ) 72,139 (2,704 ) 204,957 (4,417 ) Collateralized mortgage obligations 164,909 (1,138 ) 101,436 (2,325 ) 266,345 (3,463 ) Obligations of state and other political subdivisions 38,450 (507 ) 21,639 (435 ) 60,089 (942 ) Asset-backed securities 44,941 (200 ) 24,396 (106 ) 69,337 (306 ) Other securities 2,605 (1 ) 7,124 (286 ) 9,729 (287 ) Total $ 570,095 $ (4,745 ) $ 335,516 $ (8,881 ) $ 905,611 $ (13,626 ) |
LOANS AND LEASES
LOANS AND LEASES | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
LOANS AND LEASES | LOANS AND LEASES First Financial offers clients a variety of commercial and consumer loan and lease products with distinct interest rates and payment terms. Commercial loan categories include C&I, CRE, construction real estate and lease financing. Consumer loan categories include residential real estate, home equity, installment and credit card. Lending activities are primarily concentrated in states where the Bank operates banking centers (Ohio, Indiana, Kentucky and Illinois). First Financial also offers two nationwide lending platforms, one that provides equipment and leasehold improvement financing for franchisees in the quick service and casual dining restaurant sector and another that provides loans primarily to insurance agents and brokers that are secured by commissions and cash collateral. Credit Quality. To facilitate the monitoring of credit quality for commercial loans, and for purposes of determining an appropriate ALLL, 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 highly questionable and improbable, on the basis of currently existing facts, conditions and values. 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 previously described are derived from standard regulatory rating definitions and are assigned upon initial approval of credit to borrowers and updated periodically thereafter. First Financial considers repayment performance to be the best indicator of credit quality for consumer loans. Consumer loans that have principal and interest payments that are past due by 90 days or more are generally classified as nonperforming. Additionally, consumer loans that have been modified in a TDR are classified as nonperforming. Purchased impaired loans are not classified as nonperforming assets as the loans are considered to be performing under FASB ASC Topic 310-30. Commercial and consumer credit exposure by risk attribute was as follows: As of June 30, 2018 Commercial Real Estate Lease (Dollars in thousands) & industrial Construction Commercial financing Total Pass $ 2,367,649 $ 543,479 $ 3,794,902 $ 94,763 $ 6,800,793 Special Mention 24,261 11,947 29,399 0 65,607 Substandard 48,686 42 64,692 1,435 114,855 Doubtful 0 0 0 0 0 Total $ 2,440,596 $ 555,468 $ 3,888,993 $ 96,198 $ 6,981,255 (Dollars in thousands) Residential real estate Home equity Installment Credit card Total Performing $ 905,649 $ 828,558 $ 100,422 $ 48,665 $ 1,883,294 Nonperforming 13,255 6,473 304 0 20,032 Total $ 918,904 $ 835,031 $ 100,726 $ 48,665 $ 1,903,326 As of December 31, 2017 Commercial Real Estate Lease (Dollars in thousands) & industrial Construction Commercial financing Total Pass $ 1,882,464 $ 467,687 $ 2,446,999 $ 88,078 $ 4,885,228 Special Mention 6,226 0 4,436 0 10,662 Substandard 24,053 43 38,656 1,269 64,021 Doubtful 0 0 0 0 0 Total $ 1,912,743 $ 467,730 $ 2,490,091 $ 89,347 $ 4,959,911 (Dollars in thousands) Residential real estate Home equity Installment Credit card Total Performing $ 463,459 $ 489,148 $ 41,331 $ 46,691 $ 1,040,629 Nonperforming 7,932 4,456 255 0 12,643 Total $ 471,391 $ 493,604 $ 41,586 $ 46,691 $ 1,053,272 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 June 30, 2018 (Dollars in thousands) 30 – 59 60 – 89 > 90 days Total Current Subtotal Purchased impaired Total > 90 days Loans Commercial & industrial $ 1,885 $ 389 $ 2,814 $ 5,088 $ 2,429,204 $ 2,434,292 $ 6,304 $ 2,440,596 $ 0 Lease financing 0 0 0 0 96,198 96,198 0 96,198 0 Construction real estate 447 0 0 447 554,754 555,201 267 555,468 0 Commercial real estate 3,291 1,829 15,999 21,119 3,803,534 3,824,653 64,340 3,888,993 16 Residential real estate 1,962 601 2,945 5,508 872,404 877,912 40,992 918,904 0 Home equity 3,834 750 3,443 8,027 822,359 830,386 4,645 835,031 0 Installment 165 22 263 450 99,669 100,119 607 100,726 0 Credit card 427 216 311 954 47,711 48,665 0 48,665 311 Total $ 12,011 $ 3,807 $ 25,775 $ 41,593 $ 8,725,833 $ 8,767,426 $ 117,155 $ 8,884,581 $ 327 As of December 31, 2017 (Dollars in thousands) 30 – 59 60 – 89 > 90 days Total Current Subtotal Purchased impaired Total > 90 days Loans Commercial & industrial $ 755 $ 1,657 $ 5,078 $ 7,490 $ 1,901,821 $ 1,909,311 $ 3,432 $ 1,912,743 $ 0 Lease financing 485 0 0 485 88,862 89,347 0 89,347 0 Construction real estate 234 0 0 234 467,216 467,450 280 467,730 0 Commercial real estate 1,716 201 8,777 10,694 2,419,969 2,430,663 59,428 2,490,091 0 Residential real estate 526 811 1,992 3,329 430,500 433,829 37,562 471,391 0 Home equity 2,716 394 1,753 4,863 485,127 489,990 3,614 493,604 0 Installment 179 29 205 413 40,529 40,942 644 41,586 0 Credit card 285 87 62 434 46,257 46,691 0 46,691 62 Total $ 6,896 $ 3,179 $ 17,867 $ 27,942 $ 5,880,281 $ 5,908,223 $ 104,960 $ 6,013,183 $ 62 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 90 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. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan classified as nonaccrual may return to accrual status if collection of future principal and interest payments is no longer doubtful. 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 provision for loan and lease losses or prospective yield adjustments. Troubled Debt Restructurings. A loan modification is considered a TDR when the borrower is experiencing financial difficulty and 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 restructured terms of the loan agreement. First Financial had 205 TDRs totaling $27.8 million at June 30, 2018 , including $21.8 million on accrual status and $5.9 million classified as nonaccrual. First Financial had an insignificant amount of commitments outstanding to lend additional funds to borrowers whose loan terms have been modified through TDRs, and the ALLL included reserves of $1.1 million related to TDRs at June 30, 2018 . For each of the three and six month periods ended June 30, 2018 and 2017, the Company charged off $0.1 million for the portion of TDRs determined to be uncollectible. Additionally, as of June 30, 2018 , $13.1 million of accruing TDRs have been performing in accordance with the restructured terms for more than one year. First Financial had 214 TDRs totaling $23.9 million at December 31, 2017 , including $17.5 million of loans on accrual status and $6.4 million classified as nonaccrual. First Financial had an insignificant amount of commitments outstanding to lend additional funds to borrowers whose loan terms had been modified through TDRs. At December 31, 2017 , the ALLL included reserves of $1.3 million related to TDRs, and $17.2 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 six months ended June 30, 2018 and 2017 : Three months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Number of loans Pre-modification loan balance Period end balance Number of loans Pre-modification loan balance Period end balance Commercial & industrial 8 $ 6,221 $ 6,183 4 $ 2,177 $ 2,183 Construction real estate 0 0 0 0 0 0 Commercial real estate 4 2,047 2,016 6 1,506 1,449 Residential real estate 1 201 201 0 0 0 Home equity 0 0 0 0 0 0 Installment 0 0 0 0 0 0 Total 13 $ 8,469 $ 8,400 10 $ 3,683 $ 3,632 Six months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Number of loans Pre-modification loan balance Period end balance Number of loans Pre-modification loan balance Period end balance Commercial & industrial 12 $ 7,149 $ 7,096 6 $ 5,679 $ 5,624 Construction real estate 0 0 0 0 0 0 Commercial real estate 6 2,119 2,088 6 1,506 1,449 Residential real estate 3 294 294 0 0 0 Home equity 0 0 0 0 0 0 Installment 0 0 0 0 0 0 Total 21 $ 9,562 $ 9,478 12 $ 7,185 $ 7,073 The following table provides information on how TDRs were modified during the three and six months ended June 30, 2018 and 2017 : Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Extended maturities $ 2,000 $ 2,587 $ 2,888 $ 3,261 Adjusted interest rates 0 0 52 2,767 Combination of rate and maturity changes 0 180 0 180 Forbearance 6,199 827 6,199 827 Other (1) 201 38 339 38 Total $ 8,400 $ 3,632 $ 9,478 $ 7,073 (1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions First Financial considers repayment performance as an indication of the effectiveness of the Company's loan modifications. Borrowers that are 90 days or more past due on any principal or interest payments, or who prematurely terminate a restructured loan agreement without paying the contractual principal balance (for example, in a deed-in-lieu arrangement), are considered to be in payment default of the terms of the TDR agreement. There was one TDR, insignificant in amount, for which there was a payment default during the period that occurred within twelve months of the loan modification for the three and six months ended June 30, 2018 . There were no TDRs for which there was a payment default during the period that occurred within twelve months of the loan modification for the three or six month periods ended June 30, 2017 . Impaired Loans. Loans classified as nonaccrual and loans modified as TDRs are considered impaired. The following table provides information on impaired loans, excluding purchased impaired loans: (Dollars in thousands) June 30, 2018 December 31, 2017 Impaired loans Nonaccrual loans (1) Commercial & industrial $ 3,448 $ 5,229 Lease financing 0 82 Construction real estate 24 29 Commercial real estate 21,593 10,616 Residential real estate 9,278 4,140 Home equity 5,820 3,743 Installment 299 243 Nonaccrual loans 40,462 24,082 Accruing troubled debt restructurings 21,839 17,545 Total impaired loans $ 62,301 $ 41,627 (1) Nonaccrual loans include nonaccrual TDRs of $5.9 million and $6.4 million as of June 30, 2018 and December 31, 2017 , respectively. Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Interest income effect on impaired loans Gross amount of interest that would have been recorded under original terms $ 1,132 $ 1,158 $ 1,934 $ 1,974 Interest included in income Nonaccrual loans 146 163 226 305 Troubled debt restructurings 189 169 313 395 Total interest included in income 335 332 539 700 Net impact on interest income $ 797 $ 826 $ 1,395 $ 1,274 First Financial individually reviews all impaired commercial loan relationships, as well as consumer loan TDRs, greater than $250,000 , to determine if a specific allowance is necessary based on the borrower’s overall financial condition, payment record, support from guarantors and the realizable value of any collateral. Specific allowances are based on discounted cash flows 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 June 30, 2018 As of December 31, 2017 (Dollars in thousands) Current balance Contractual principal balance Related allowance Current balance Contractual Related Loans with no related allowance recorded Commercial & industrial $ 10,856 $ 14,647 $ 0 $ 7,162 $ 8,460 $ 0 Lease financing 0 0 0 82 82 0 Construction real estate 24 57 0 29 60 0 Commercial real estate 30,655 36,421 0 18,423 20,837 0 Residential real estate 12,216 14,383 0 6,876 8,145 0 Home equity 6,372 7,311 0 4,356 5,399 0 Installment 304 603 0 255 422 0 Total 60,427 73,422 0 37,183 43,405 0 Loans with an allowance recorded Commercial & industrial 379 379 179 169 169 169 Lease financing 0 0 0 0 0 0 Construction real estate 0 0 0 0 0 0 Commercial real estate 356 356 25 3,119 3,120 448 Residential real estate 1,039 1,039 160 1,056 1,063 160 Home equity 100 100 2 100 100 2 Installment 0 0 0 0 0 0 Total 1,874 1,874 366 4,444 4,452 779 Total Commercial & industrial 11,235 15,026 179 7,331 8,629 169 Lease financing 0 0 0 82 82 0 Construction real estate 24 57 0 29 60 0 Commercial real estate 31,011 36,777 25 21,542 23,957 448 Residential real estate 13,255 15,422 160 7,932 9,208 160 Home equity 6,472 7,411 2 4,456 5,499 2 Installment 304 603 0 255 422 0 Total $ 62,301 $ 75,296 $ 366 $ 41,627 $ 47,857 $ 779 First Financial's average impaired loans by class and interest income recognized by class was as follows: Three months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Average Interest Average Interest Loans with no related allowance recorded Commercial & industrial $ 9,714 $ 73 $ 17,198 $ 87 Lease financing 0 0 98 1 Construction real estate 25 1 1,075 0 Commercial real estate 27,516 140 25,465 144 Residential real estate 9,173 76 7,605 46 Home equity 5,222 27 3,926 27 Installment 305 1 357 1 Total 51,955 318 55,724 306 Loans with an allowance recorded Commercial & industrial 309 6 2,301 11 Lease financing 0 0 0 0 Construction real estate 0 0 0 0 Commercial real estate 358 3 658 8 Residential real estate 1,042 7 1,126 6 Home equity 101 1 101 1 Installment 0 0 0 0 Total 1,810 17 4,186 26 Total Commercial & industrial 10,023 79 19,499 98 Lease financing 0 0 98 1 Construction real estate 25 1 1,075 0 Commercial real estate 27,874 143 26,123 152 Residential real estate 10,215 83 8,731 52 Home equity 5,323 28 4,027 28 Installment 305 1 357 1 Total $ 53,765 $ 335 $ 59,910 $ 332 Six months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Average Interest Average Interest Loans with no related allowance recorded Commercial & industrial $ 8,863 $ 99 $ 15,607 $ 196 Lease financing 27 0 149 2 Construction real estate 26 2 538 0 Commercial real estate 24,485 239 19,939 304 Residential real estate 8,407 123 8,032 92 Home equity 4,933 47 4,111 51 Installment 288 1 413 3 Total 47,029 511 48,789 648 Loans with an allowance recorded Commercial & industrial 262 6 1,094 24 Lease financing 0 0 0 0 Construction real estate 0 0 0 0 Commercial real estate 1,278 6 4,374 13 Residential real estate 1,047 14 1,185 13 Home equity 100 2 101 2 Installment 0 0 0 0 Total 2,687 28 6,754 52 Total Commercial & industrial 9,125 105 16,701 220 Lease financing 27 0 149 2 Construction real estate 26 2 538 0 Commercial real estate 25,763 245 24,313 317 Residential real estate 9,454 137 9,217 105 Home equity 5,033 49 4,212 53 Installment 288 1 413 3 Total $ 49,716 $ 539 $ 55,543 $ 700 Acquired loans. Acquired loans are recorded at their estimated fair value at the time of acquisition. Estimated fair values for acquired loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, interest rate, term of loan, whether or not the loan was amortizing and a discount rate reflecting the Company's assessment of risk inherent in the cash flow estimates. Acquired loans are grouped together according to similar characteristics and treated in the aggregate when applying various valuation techniques. First Financial evaluates acquired loans for impairment in accordance with the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Acquired loans with evidence of credit deterioration since origination are accounted for under FASB ASC Topic 310-30 and are referred to as purchased impaired loans. 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 purchased impaired loans. First Financial had purchased impaired loans totaling $117.2 million at June 30, 2018 , which included $24.1 million acquired in the merger with MSFG. Accretable yield, or income expected to be collected, and nonaccretable yield on the purchase impaired loans acquired in the MSFG merger was $1.2 million and $2.7 million , respectively, on the date of acquisition. First Financial had $105.0 million of purchased impaired loans at December 31, 2017 . Acquired loans outside of the scope of FASB ASC Topic 310-30 are accounted for under FASB ASC Topic 310-20, Receivables-Nonrefundable Fees and Costs. In its merger with MSFG, First Financial acquired loans with a fair value of $2.7 billion and gross contractual amounts receivable of $2.9 billion on the date of acquisition that were accounted for in accordance with FASB ASC Topic 310-20. OREO. OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, or other resolution activity that results in partial or total satisfaction of problem loans. Changes in OREO were as follows: Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 1,065 $ 5,300 $ 2,781 $ 6,284 Additions Commercial & industrial 1,020 50 1,190 172 Residential real estate 525 1,913 984 2,078 Total additions 1,545 1,963 2,174 2,250 Disposals Commercial & industrial (326 ) (682 ) (2,430 ) (1,607 ) Residential real estate (292 ) (448 ) (410 ) (685 ) Total disposals (618 ) (1,130 ) (2,840 ) (2,292 ) Valuation adjustment Commercial & industrial 0 (116 ) (97 ) (162 ) Residential real estate (139 ) (56 ) (165 ) (119 ) Total valuation adjustment (139 ) (172 ) (262 ) (281 ) Balance at end of period $ 1,853 $ 5,961 $ 1,853 $ 5,961 |
ALLOWANCE FOR LOAN AND LEASE LO
ALLOWANCE FOR LOAN AND LEASE LOSSES | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | ALLOWANCE FOR LOAN AND LEASE LOSSES Loans and leases. Management maintains the ALLL at a level that it considers sufficient to absorb probable incurred loan and lease losses inherent in the portfolio. Management determines the adequacy of the ALLL based on historical loss experience as well as other significant factors such as composition of the portfolio, economic conditions, geographic footprint, the results of periodic internal and external evaluations of delinquent, nonaccrual and classified loans and any other adverse situations that may affect a specific borrower's ability to repay, including the timing of future payments. The ALLL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. First Financial's policy is to charge-off all or a portion of a loan when, in management's opinion, it is unlikely to collect the principal amount owed in full either through payments from the borrower or from the liquidation of collateral. Changes in the ALLL by loan category were as follows: Three months ended June 30, 2018 Real Estate (Dollars in thousands) Commercial and industrial Lease financing Construction Commercial Residential Home Equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 18,038 $ 626 $ 4,267 $ 20,321 $ 4,727 $ 4,828 $ 290 $ 1,283 $ 54,380 Provision for loan and lease losses 3,328 170 (282 ) (619 ) (28 ) 171 136 859 3,735 Gross charge-offs (4,356 ) 0 0 (78 ) (101 ) (385 ) (218 ) (684 ) (5,822 ) Recoveries 518 1 0 887 70 187 82 38 1,783 Total net charge-offs (3,838 ) 1 0 809 (31 ) (198 ) (136 ) (646 ) (4,039 ) Ending allowance for loan and lease losses $ 17,528 $ 797 $ 3,985 $ 20,511 $ 4,668 $ 4,801 $ 290 $ 1,496 $ 54,076 Three months ended June 30, 2017 Real Estate (Dollars in thousands) Commercial and industrial Lease financing Construction Commercial Residential Home Equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 17,148 $ 616 $ 3,607 $ 23,745 $ 5,485 $ 3,774 $ 419 $ 1,532 $ 56,326 Provision for loan and lease losses 3,537 (67 ) (280 ) (2,941 ) (305 ) 526 19 (22 ) 467 Loans charged off (3,065 ) 0 0 (485 ) (223 ) (384 ) (126 ) (215 ) (4,498 ) Recoveries 693 1 89 1,398 59 222 43 73 2,578 Total net charge-offs (2,372 ) 1 89 913 (164 ) (162 ) (83 ) (142 ) (1,920 ) Ending allowance for loan and lease losses $ 18,313 $ 550 $ 3,416 $ 21,717 $ 5,016 $ 4,138 $ 355 $ 1,368 $ 54,873 Six months ended June 30, 2018 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 17,598 $ 675 $ 3,577 $ 20,930 $ 4,683 $ 4,935 $ 307 $ 1,316 $ 54,021 Provision for loan and lease losses 4,217 121 408 196 86 (123 ) 87 1,046 6,038 Loans charged off (5,241 ) 0 0 (2,254 ) (197 ) (627 ) (234 ) (938 ) (9,491 ) Recoveries 954 1 0 1,639 96 616 130 72 3,508 Total net charge-offs (4,287 ) 1 0 (615 ) (101 ) (11 ) (104 ) (866 ) (5,983 ) Ending allowance for loan and lease losses $ 17,528 $ 797 $ 3,985 $ 20,511 $ 4,668 $ 4,801 $ 290 $ 1,496 $ 54,076 As of June 30, 2018 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Ending allowance balance attributable to loans Individually evaluated for impairment $ 179 $ 0 $ 0 $ 25 $ 160 $ 2 $ 0 $ 0 $ 366 Collectively evaluated for impairment 17,349 797 3,985 20,486 4,508 4,799 290 1,496 53,710 Ending allowance for loan and lease losses $ 17,528 $ 797 $ 3,985 $ 20,511 $ 4,668 $ 4,801 $ 290 $ 1,496 $ 54,076 Loans Individually evaluated for impairment $ 11,235 $ 0 $ 24 $ 31,011 $ 13,255 $ 6,472 $ 304 $ 0 $ 62,301 Collectively evaluated for impairment 2,429,361 96,198 555,444 3,857,982 905,649 828,559 100,422 48,665 8,822,280 Total loans $ 2,440,596 $ 96,198 $ 555,468 $ 3,888,993 $ 918,904 $ 835,031 $ 100,726 $ 48,665 $ 8,884,581 Six months ended June 30, 2017 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 19,225 $ 716 $ 3,282 $ 26,540 $ 3,208 $ 3,043 $ 388 $ 1,559 $ 57,961 Provision for loan and lease losses 2,941 (167 ) 45 (5,507 ) 2,024 1,331 28 139 834 Loans charged off (4,808 ) 0 0 (970 ) (284 ) (564 ) (175 ) (447 ) (7,248 ) Recoveries 955 1 89 1,654 68 328 114 117 3,326 Total net charge-offs (3,853 ) 1 89 684 (216 ) (236 ) (61 ) (330 ) (3,922 ) Ending allowance for loan and lease losses $ 18,313 $ 550 $ 3,416 $ 21,717 $ 5,016 $ 4,138 $ 355 $ 1,368 $ 54,873 As of December 31, 2017 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Ending allowance balance attributable to loans Individually evaluated for impairment $ 169 $ 0 $ 0 $ 448 $ 160 $ 2 $ 0 $ 0 $ 779 Collectively evaluated for impairment 17,429 675 3,577 20,482 4,523 4,933 307 1,316 53,242 Ending allowance for loan and lease losses $ 17,598 $ 675 $ 3,577 $ 20,930 $ 4,683 $ 4,935 $ 307 $ 1,316 $ 54,021 Loans Individually evaluated for impairment $ 7,331 $ 82 $ 29 $ 21,542 $ 7,932 $ 4,456 $ 255 $ 0 $ 41,627 Collectively evaluated for impairment 1,905,412 89,265 467,701 2,468,549 463,459 489,148 41,331 46,691 5,971,556 Total loans $ 1,912,743 $ 89,347 $ 467,730 $ 2,490,091 $ 471,391 $ 493,604 $ 41,586 $ 46,691 $ 6,013,183 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill. Assets and liabilities acquired in a business combination 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. During the second quarter of 2018, First Financial recorded additions to goodwill resulting from the merger with MSFG. No additions to goodwill were recorded during 2017. For further detail on the merger with MSFG, see Note 16 - Business Combinations. Changes in the carrying amount of goodwill for the six months ended June 30, 2018 and the year ended December 31, 2017 were as follows: (Dollars in thousands) June 30, December 31, Balance at beginning of year $ 204,084 $ 204,084 Goodwill resulting from business combinations 678,941 0 Balance at end of period $ 883,025 $ 204,084 Goodwill is evaluated 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, 2017 and no impairment was indicated. As of June 30, 2018 , no events or changes in circumstances indicated that the fair value of a reporting unit was below its carrying value. Other intangible assets. As of June 30, 2018 and December 31, 2017 , First Financial had $51.6 million and $5.3 million , respectively, of other intangible assets included in Goodwill and other intangibles in the Consolidated Balance Sheets, which primarily consist of core deposit intangibles. Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis over their estimated useful lives. Core deposit intangibles were $42.5 million and $3.3 million as of June 30, 2018 and December 31, 2017 , respectively. First Financial's core deposit intangibles have an estimated weighted average remaining life of 9.3 years . Amortization expense recognized on intangible assets for the three months ended June 30, 2018 and 2017 was $2.4 million and $0.3 million , respectively. Amortization expense recognized on intangible assets for the six months ended June 30, 2018 and 2017 was $2.6 million and $0.7 million |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2018 | |
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, overnight advances from the FHLB and a short-term line of credit. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between the Bank and the client. To secure its liability to the client, the Bank is authorized to sell or repurchase U.S. Treasury, government agency and mortgage-backed securities. First Financial had $1.1 billion in short-term borrowings with the FHLB at June 30, 2018 and $742.3 million as of December 31, 2017 . These short-term borrowings are used to manage normal liquidity needs and support the Company's asset and liability management strategies. First Financial has a $15.0 million short-term credit facility with an unaffiliated bank that matured in July 2018, but is in the process of being extended. This facility can have a variable or fixed interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of June 30, 2018 and December 31, 2017 , there was no outstanding balance. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of June 30, 2018 and December 31, 2017 . In conjunction with its merger with MSFG, First Financial acquired certain variable rate short-term borrowings with an unaffiliated bank. As of June 30, 2018, the balance outstanding was $8.3 million and the interest rate was 4.19% . This term debt is paid quarterly and matures in 2019. First Financial had $469.4 million and $119.7 million of long-term debt as of June 30, 2018 and December 31, 2017, respectively, which included subordinated notes, FHLB long term advances and an interest free loan with a municipality. The following is a summary of First Financial's long-term debt: June 30, 2018 December 31, 2017 (Dollars in thousands) Amount Average rate Amount Average rate Subordinated notes $ 177,887 5.13 % $ 120,000 5.13 % Unamortized discount and debt issuance costs (8,819 ) N/A (1,362 ) N/A FHLB borrowings 299,580 1.90 % 241 1.09 % Capital loan with municipality 775 0.00 % 775 0.00 % Total long-term debt $ 469,423 3.16 % $ 119,654 5.14 % In 2015, First Financial issued $120.0 million of subordinated notes, which have a fixed interest rate of 5.125% payable semiannually and mature on August 25, 2025. These notes are not redeemable by the Company, or callable by the holders of the notes prior to maturity. The subordinated notes are treated as Tier 2 capital for regulatory capital purposes. In addition, First Financial acquired, $49.5 million of variable rate subordinated notes in the MSFG merger that was issued to previously formed trusts in exchange for the trust proceeds. Interest on the acquired subordinated notes is payable quarterly, in arrears, and the Company has the option to defer interest payments for a period not to exceed 20 consecutive quarters. The acquired subordinated notes mature 30 years from issuance and may be called at par at any point following the 5 years anniversary of issuance. First Financial also acquired $8.4 million of 6.95% fixed rate private placement subordinated debt in conjunction with the MSFG merger that matures in 2025. In addition to subordinated notes, long-term debt included $299.6 million and $0.2 million of fixed rate FHLB long-term advances as of June 30, 2018 and December 31, 2017 , respectively. As of June 30, 2018, these long-term advances had a weighted average interest rate of 1.90% |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2018 | |
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 incom e and reclassifications out of accumulated other comprehensive income (loss) are as follows: Three months ended June 30, 2018 Total other comprehensive income (loss) Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Reclass from Pre-tax Tax effect Net of tax Beginning Balance Net Activity Ending Balance Unrealized gain (loss) on investment securities $ (11,456 ) $ (30 ) $ (11,426 ) $ 2,448 $ (8,978 ) $ (10,051 ) $ (8,978 ) $ (19,029 ) Unrealized gain (loss) on derivatives 203 0 203 (44 ) 159 (545 ) 159 (386 ) Retirement obligation 0 (452 ) 452 42 494 (24,087 ) 494 (23,593 ) Total $ (11,253 ) $ (482 ) $ (10,771 ) $ 2,446 $ (8,325 ) $ (34,683 ) $ (8,325 ) $ (43,008 ) Three months ended June 30, 2017 Total other comprehensive income (loss) Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Reclass from Pre-tax Tax effect Net of tax Beginning Balance Net Activity Ending Balance Unrealized gain (loss) on investment securities $ 7,170 $ 838 $ 6,332 $ (2,256 ) $ 4,076 $ (3,062 ) $ 4,076 $ 1,014 Unrealized gain (loss) on derivatives 202 0 202 (74 ) 128 (963 ) 128 (835 ) Retirement obligation 0 (335 ) 335 (122 ) 213 (22,614 ) 213 (22,401 ) Total $ 7,372 $ 503 $ 6,869 $ (2,452 ) $ 4,417 $ (26,639 ) $ 4,417 $ (22,222 ) Six months ended June 30, 2018 Total other comprehensive income Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Pre-tax Tax effect Net of tax Beginning Balance Net Activity Reclass of Stranded Tax Effects Ending Balance Unrealized gain (loss) on investment securities $ (23,992 ) $ (30 ) $ (23,962 ) $ 5,154 $ (18,808 ) $ (182 ) $ (18,808 ) $ (39 ) $ (19,029 ) Unrealized gain (loss) on derivatives 405 0 405 (90 ) 315 (577 ) 315 (124 ) (386 ) Retirement obligation 0 (871 ) 871 (54 ) 817 (19,631 ) 817 (4,779 ) (23,593 ) Total $ (23,587 ) $ (901 ) $ (22,686 ) $ 5,010 $ (17,676 ) $ (20,390 ) $ (17,676 ) $ (4,942 ) $ (43,008 ) Six months ended June 30, 2017 Total other comprehensive income Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Pre-tax Tax effect Net of tax Beginning Balance Net Activity Ending Balance Unrealized gain (loss) on investment securities $ 10,002 $ 1,354 $ 8,648 $ (3,085 ) $ 5,563 $ (4,549 ) $ 5,563 $ 1,014 Unrealized gain (loss) on derivatives 405 0 405 (149 ) 256 (1,091 ) 256 (835 ) Retirement obligation 0 (670 ) 670 (268 ) 402 (22,803 ) 402 (22,401 ) Total $ 10,407 $ 684 $ 9,723 $ (3,502 ) $ 6,221 $ (28,443 ) $ 6,221 $ (22,222 ) The following table presents the activity reclassified from accumulated other comprehensive income into income during the three and six month periods ended June 30, 2018 and 2017, respectively: Amount reclassified from accumulated other comprehensive income (1) Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Affected Line Item in the Consolidated Statements of Income Realized gain (loss) on securities available-for-sale $ (30 ) $ 838 $ (30 ) $ 1,354 Net gain (loss) on sales of investments securities Defined benefit pension plan Amortization of prior service cost (2) 103 104 206 207 Other noninterest expense (2018) Salaries and employee benefits (2017) Recognized net actuarial loss (2) (555 ) (439 ) (1,077 ) (877 ) Other noninterest expense (2018) Defined benefit pension plan total (452 ) (335 ) (871 ) (670 ) Total reclassifications for the period, before tax $ (482 ) $ 503 $ (901 ) $ 684 (1) Negative amounts are reductions to net income. (2) |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES First Financial uses certain 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. First Financial primarily utilizes interest rate swaps as a means to offer borrowers credit-based products that meet their needs. First Financial may also utilize interest rate swaps to manage the interest rate risk profile of the Company. Interest rate payments are exchanged with counterparties based on the notional amount established in the interest rate agreement. 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 market value credit risk through counterparty credit policies, which 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 below all single counterparty and portfolio limits. At June 30, 2018 , the Company had a total counterparty notional amount outstanding of $1.2 billion , spread among fourteen counterparties, with an outstanding asset from these contracts of $21.8 million . At December 31, 2017 , the Company had a total counterparty notional amount outstanding of $837.5 million , spread among thirteen counterparties, with an outstanding liability from these contracts of $1.3 million . First Financial monitors its derivative credit exposure to borrowers by monitoring the creditworthiness of the related loan customers 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 ALLL 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. Client Derivatives. First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets. The following table details the classification and amounts recognized in the Consolidated Balance Sheets for client derivatives: June 30, 2018 December 31, 2017 Estimated fair value Estimated fair value (Dollars in thousands) Balance sheet classification Notional amount Gain Loss Notional amount Gain Loss Client derivatives - instruments associated with loans Matched interest rate swaps with borrower Accrued interest and other assets $ 1,179,156 $ 3,261 $ (24,306 ) $ 837,040 $ 7,153 $ (5,529 ) Matched interest rate swaps with counterparty Accrued interest and other liabilities 1,179,156 24,306 (3,259 ) 837,040 5,529 (7,158 ) Total $ 2,358,312 $ 27,567 $ (27,565 ) $ 1,674,080 $ 12,682 $ (12,687 ) In connection with its use of derivative instruments, First Financial and its counterparties may be 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 client derivative liabilities recognized in the Consolidated Balance Sheets: June 30, 2018 December 31, 2017 (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 Client derivatives Matched interest rate swaps with counterparty $ 27,567 $ (7,152 ) $ 20,415 $ 12,687 $ 2,279 $ 14,966 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 June 30, 2018 : Weighted-average rate (Dollars in thousands) Notional amount Average maturity (years) Fair value Receive Pay Client derivatives Receive fixed, matched interest rate swaps with borrower $ 1,179,156 4.8 $ (21,045 ) 4.50 % 4.25 % Pay fixed, matched interest rate swaps with counterparty 1,179,156 4.8 21,047 4.25 % 4.50 % Total client derivatives $ 2,358,312 4.8 $ 2 4.37 % 4.37 % Credit Derivatives. In conjunction with participating interests in commercial loans, First Financial periodically enters into risk participation agreements with counterparties whereby First Financial assumes a portion of the credit exposure associated with an interest rate swap on the participated loan in exchange for a fee. Under these agreements, First Financial will make payments to the counterparty if the loan customer defaults on its obligation to perform under the interest rate swap contract with the counterparty. The total notional value of these agreements totaled $146.3 million as of June 30, 2018 and $95.9 million as of December 31, 2017 . The fair value of these agreements is recorded in Accrued interest and other liabilities on the Consolidated Balance Sheets and was $0.1 million at both June 30, 2018 and December 31, 2017 . Mortgage Derivatives. First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure an IRLC with First Financial and the loan is intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale. At June 30, 2018 , the notional amount of the IRLCs was $37.2 million and the notional amount of forward commitments was $35.6 million . As of December 31, 2017 , the notional amount of IRLCs was $12.3 million and the notional amount of forward commitments was $15.4 million . The fair value of these agreements was insignificant at both June 30, 2018 and $0.1 million December 31, 2017 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES First Financial offers a variety of financial instruments including standby letters of credit and outstanding commitments to extend credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements. First Financial utilizes the same credit policies in issuing commitments and conditional obligations as it does for credit instruments recorded on the Consolidated Balance Sheets. First Financial’s exposure to credit loss in the event of nonperformance by the counterparty is represented by the contractual amounts of those instruments. First Financial utilizes the ALLL methodology to maintain a reserve that it considers sufficient to absorb probable incurred losses inherent in letters of credit and outstanding loan commitments and records the reserve within Accrued interest and other liabilities on the Consolidated Balance Sheets. First Financial had $1.1 million and $0.5 million of reserves for unfunded commitments as of June 30, 2018 and December 31, 2017 , respectively. Loan commitments. Loan commitments are agreements to extend credit to a client, absent any violation of conditions 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 $2.9 billion and $2.1 billion at June 30, 2018 and December 31, 2017 , respectively. As of June 30, 2018 , loan commitments with a fixed interest rate totaled $215.8 million while commitments with variable interest rates totaled $2.6 billion . At December 31, 2017 , loan commitments with a fixed interest rate totaled $44.3 million while commitments with variable interest rates totaled $2.0 billion . First Financial's fixed rate loan commitments have interest rates ranging from 0.00% to 21.00% and maturities ranging from less than 1 year to 30 years . 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 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 aggregating $35.6 million and $25.3 million at June 30, 2018 and December 31, 2017 , respectively. Management conducts regular reviews of these instruments on an individual client basis. Investments in affordable housing tax credits. First Financial has made investments in certain qualified affordable housing tax credits. These credits are an indirect federal subsidy that provide tax incentives to encourage investment in the development, acquisition and rehabilitation of affordable rental housing, and allow investors to claim tax credits and other tax benefits (such as deductions from taxable income for operating losses) on their federal income tax returns. The principal risk associated with qualified affordable housing investments is the potential for noncompliance with the tax code requirements, such as failure to rent property to qualified tenants, resulting in the unavailability or recapture of the tax credits and other tax benefits. Investments in affordable housing projects are accounted for under the proportional amortization method and are included in Accrued interest and other assets in the Consolidated Balance Sheets. First Financial's affordable housing commitments totaled $34.3 million and $35.9 million as of June 30, 2018 and December 31, 2017 , respectively. The Company recognized tax credits of $1.2 million and $0.8 million and $2.3 million and $1.6 million for the three months and six months ended June 30, 2018 and 2017 , respectively. The Company recognized amortization expense which was included in income tax expense of $1.6 million and $1.2 million for the three months ended June 30, 2018 and 2017 , respectively and $2.8 million and $2.2 million for the six months ended June 30, 2018 and 2017 , respectively. First Financial had no affordable housing contingent commitments as of June 30, 2018 or December 31, 2017 . Investments in historic tax credits. First Financial has noncontrolling financial investments in private investment funds and partnerships which are not consolidated. These investments may generate a return through the realization of federal and state income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investments over a period of time. Investments in historic tax credits are accounted for under the equity method of accounting and are carried in Accrued interest and other assets on the Consolidated Balance Sheets. The Company’s recorded investment in these entities was approximately $2.9 million at June 30, 2018 and $3.0 million at December 31, 2017 . The maximum exposure to loss related to these investments was $2.9 million at June 30, 2018 and $3.0 million at December 31, 2017 , representing the Company’s investment balance and its unfunded commitments to invest additional amounts. Investments in historic tax credits resulted in $0.1 million of tax credits for each of the three months ended June 30, 2018 and 2017 , and $0.2 million and $0.3 million of tax credits for the six months ended June 30, 2018 and 2017 , respectively. Contingencies/Litigation. From time to time, First Financial and its subsidiaries may be engaged in various matters of litigation, other assertions of improper or fraudulent loan practices or lending violations and other matters. 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 are 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 June 30, 2018 . 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. First Financial had no reserves related to litigation matters as of June 30, 2018 or December 31, 2017 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the second quarter 2018 , income tax expense was $9.3 million , resulting in an effective tax rate of 20.4% compared with income tax expense of $11.2 million and an effective tax rate of 33.0% for the comparable period in 2017. For the first six months of 2018, income tax expense was $17.0 million , resulting in an effective tax rate of 20.2% compared with income tax expense of $21.7 million and an effective tax rate of 31.5% for the comparable period in 2017. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. As a result, First Financial valued its deferred tax assets and liabilities as well as its investments in affordable housing projects utilizing a 21% federal rate during the first half of 2018 compared to a 35% rate in the first half of 2017. ASU 2016-09, Compensation-Stock Compensation Improvements to Employee Share-Based Payment Accounting, requires the recognition of the income tax effects of share-based awards through the income statement as a component of income tax expense. First Financial recorded a $0.1 million tax benefit as a result of share awards vesting and exercised during the second quarter of 2018 and $0.5 million and $1.2 million for the first six months of 2018 and 2017, respectively. Tax benefits resulting from the vesting and exercise of share awards in the second quarter of 2017 were insignificant. At both June 30, 2018 and December 31, 2017 , First Financial had $2.9 million of unrecognized tax benefits, as determined in FASB ASC Topic 740-10, Income Taxes that, if recognized, would favorably affect the effective income tax rate in future periods. The unrecognized tax benefits relate to state income tax exposures from taking tax positions where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial. The Company believes that resolution regarding our uncertain tax positions is reasonably possible within the next twelve months and could result in full, partial or no recognition of the benefit. First Financial recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. At June 30, 2018 and December 31, 2017 , the Company had no interest or penalties recorded. 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 2014 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2014 through 2017 remain open to examination by the federal taxing authority. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [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 the plan. Plan assets were primarily invested in fixed income and publicly traded equity mutual funds. The pension plan does not directly own any shares of First Financial common stock or any other First Financial security or product. First Financial made no cash contributions to fund the pension plan during the six months ended June 30, 2018 , or the year ended December 31, 2017, and does not expect to make cash contributions to the plan through the remainder of 2018. As a result of the plan’s actuarial projections, which included consideration of the impact of the merger with MSFG, First Financial recorded expense of $0.3 million for the three months ended June 30, 2018 and $0.2 million for the six months ended June 30, 2018 . Conversely, First Financial recorded income of $0.3 million for the three months ended June 30, 2017 and $0.6 million for the six months ended June 30, 2017 . The following table sets forth information concerning amounts recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan: Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Service cost $ 1,735 $ 1,239 $ 3,030 $ 2,477 Interest cost 601 589 1,191 1,178 Expected return on assets (2,450 ) (2,481 ) (4,910 ) (4,962 ) Amortization of prior service cost (103 ) (104 ) (206 ) (207 ) Net actuarial loss 555 439 1,077 877 Net periodic benefit cost (income) $ 338 $ (318 ) $ 182 $ (637 ) |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers using the modified retrospective method applied to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the guidance set forth in this update while prior period amounts continue to be reported in accordance with legacy GAAP. Adoption of this update did not result in a change to the accounting for any of the in-scope revenue streams. As such, no cumulative effect adjustment to retained earnings was recorded. The majority of the Company's revenues come from interest income and other sources, including loans, leases, securities and derivatives, that are outside the scope of this guidance. The Company's services that fall within the scope of this ASU are presented within Noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of this guidance include service charges on deposits, wealth management fees, bankcard income, investment brokerage fees and the sale of OREO. Service charges on deposit accounts. The Company earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Similarly, overdraft fees are recognized at the point in time that the overdraft occurs as this corresponds with the Company's performance obligation. Service charges on deposit accounts are withdrawn from the customer's account balance. Trust and wealth management fees. Trust and wealth management fees are primarily asset-based, but can also include flat fees based upon a specific service rendered, such as tax preparation services. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fees. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and wealth management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, as incurred. Bankcard income. The Company earns interchange fees from cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized concurrent with the transaction processing services provided to the cardholder. Interchange income is presented on the Consolidated Statements of Income net of expenses. Gross interchange income for the second quarter of 2018 was $8.1 million , which was partially offset by $2.8 million of expenses within Noninterest income. Gross interchange income for the first six months of 2018 was $13.5 million , which was partially offset by $4.8 million of expenses. Gain/loss on sale of OREO. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of the executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectibility of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. Other. Other noninterest income consists of other recurring revenue streams such as transaction fees, safe deposit rental income, insurance commissions, merchant referral income and brokerage revenue. Transaction fees primarily include check printing sales commissions, collection fees and wire transfer fees which arise from in-branch transactions. Safe deposit rental income arises from services charged to the customer on an annual basis and recognized upon receipt of payment. Insurance commissions are agent commissions earned by the Company and earned upon the effective date of the bound coverage. Merchant referral income is associated with a program whereby the Company receives a share of processing revenue that is generated from clients that were referred by First Financial to the service provider. Revenue is recognized at the point in time when the transaction occurs. Brokerage revenue represents fees from investment brokerage services provided to customers by a third party provider. The Company receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are paid the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2018 | |
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 Six months ended June 30, June 30, (Dollars in thousands, except per share data) 2018 2017 2018 2017 Numerator Net income available to common shareholders $ 36,418 $ 22,736 $ 66,924 $ 47,150 Denominator Basic earnings per common share - weighted average shares 97,347,533 61,543,478 79,599,709 61,471,347 Effect of dilutive securities Employee stock awards 545,374 625,031 504,914 649,706 Warrants 539,165 65,513 524,872 66,420 Diluted earnings per common share - adjusted weighted average shares 98,432,072 62,234,022 80,629,495 62,187,473 Earnings per share available to common shareholders Basic $ 0.37 $ 0.37 $ 0.84 $ 0.77 Diluted $ 0.37 $ 0.37 $ 0.83 $ 0.76 First Financial has two categories of warrants outstanding to purchase the Company's common stock as of June 30, 2018 . The first type of warrant represents the right to purchase one share of common stock, no par value per share, and has an exercise price of $12.11 per share. First Financial had warrants outstanding to purchase 22,698 and 112,233 shares of First Financial's common stock as of June 30, 2018 and 2017, respectively and these warrants expire in December of 2018. The second category of warrant was acquired in the MSFG merger and the Company had one such warrant outstanding as of June 30, 2018. This warrant represents the right to purchase 793,520 shares of First Financial's common stock at an exercise price of $10.72 per share and expires in January 2019. Stock options and warrants with exercise prices 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. Using the end of period price of the Company's common shares, there were no antidilutive options at June 30, 2018 and June 30, 2017 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The fair value framework as disclosed in the 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 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 June 30, 2018 Financial assets Cash and short-term investments $ 254,582 $ 254,582 $ 254,582 $ 0 $ 0 Investment securities held-to-maturity 443,957 435,785 0 435,785 0 Other investments 95,004 N/A N/A N/A N/A Loans held for sale 15,821 15,821 0 15,821 0 Loans and leases 8,830,505 8,847,519 0 0 8,847,519 Accrued interest receivable 40,152 40,152 0 13,939 26,213 Financial liabilities Deposits 10,103,747 10,073,140 0 10,073,140 0 Short-term borrowings 1,188,303 1,188,303 1,188,303 0 0 Long-term debt 469,423 462,478 0 462,478 0 Accrued interest payable 9,550 9,550 1,577 7,973 0 Carrying Estimated fair value (Dollars in thousands) value Total Level 1 Level 2 Level 3 December 31, 2017 Financial assets Cash and short-term investments $ 184,624 $ 184,624 $ 184,624 $ 0 $ 0 Investment securities held-to-maturity 654,008 653,101 0 653,101 0 Other investments 53,140 N/A N/A N/A N/A Loans held for sale 11,502 11,502 0 11,502 0 Loans and leases 5,959,162 6,006,656 0 0 6,006,656 Accrued interest receivable 24,496 24,496 0 8,265 16,231 Financial liabilities Deposits 6,895,046 6,884,615 0 6,884,615 0 Short-term borrowings 814,565 814,565 814,565 0 0 Long-term debt 119,654 117,908 0 117,908 0 Accrued interest payable 5,104 5,104 204 4,900 0 N/A = Not applicable The methods utilized to estimate the fair value of financial instruments at December 31, 2017 did not necessarily represent an exit price. In accordance with our adoption of ASU 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at June 30, 2018 represent an approximation of exit price, however, an actual exit price may differ. The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis. 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 previously described are considered Level 3. First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance. First Financial’s pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services. Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities. First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings. The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager. Impaired loans. The fair value of impaired loans are specifically reviewed for purposes of determining the appropriate amount of impairment to be allocated to the ALLL. 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 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 on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements. 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 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. OREO. Assets acquired through loan foreclosure are recorded at fair value less costs to sell, with any difference between the fair value of the property and the carrying value of the loan recorded as a charge-off. If the fair value is higher than the carrying amount of the loan, the excess is recognized first as a recovery and then as noninterest income. Subsequent declines in value are reported as adjustments to the carrying amount and are recorded in noninterest expense. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value differs from the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. The Company classifies OREO in level 3 of the fair value hierarchy. 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 which represents the cost to terminate the swap if First Financial should choose to do so. Additionally, First Financial utilizes an internally-developed model to value the credit risk component of derivative assets and liabilities, which 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 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 Assets/liabilities at fair value June 30, 2018 Assets Derivatives $ 0 $ 28,113 $ 0 $ 28,113 Investment securities available-for-sale 7,737 2,647,172 0 2,654,909 Total $ 7,737 $ 2,675,285 $ 0 $ 2,683,022 Liabilities Derivatives $ 0 $ 27,624 $ 0 $ 27,624 Fair value measurements using (Dollars in thousands) Level 1 Level 2 Level 3 Assets/liabilities at fair value December 31, 2017 Assets Derivatives $ 0 $ 12,757 $ 0 $ 12,757 Investment securities available-for-sale 2,969 1,346,439 0 1,349,408 Total $ 2,969 $ 1,359,196 $ 0 $ 1,362,165 Liabilities Derivatives $ 0 $ 12,755 $ 0 $ 12,755 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 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 June 30, 2018 Assets Impaired loans $ 0 $ 0 $ 531 OREO 0 0 284 Fair value measurements using (Dollars in thousands) Level 1 Level 2 Level 3 December 31, 2017 Assets Impaired loans $ 0 $ 0 $ 2,671 OREO 0 0 1,086 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On April 1, 2018, the Company completed its acquisition of MainSource Financial Group, Inc. and its banking subsidiary, MainSource Bank. Therefore, results of MSFG have been included in the results of operations beginning on April 1, 2018. Under the terms of the merger agreement, shareholders of MSFG received 1.3875 common shares of First Financial common stock for each share of MSFG common stock, with cash paid in lieu of fractional shares. Including outstanding options and warrants to purchase MSFG common stock, the total purchase consideration was $1.1 billion and resulted in goodwill of $678.9 million . The goodwill arising from the acquisition largely reflected synergies and cost savings resulting from combining the operations of the companies. First Financial incurred $25.9 million of merger related expenses related to the acquisition of MSFG during the six months ended June 30, 2018. The acquisition is expected to provide additional revenue growth and diversification. The goodwill is not deductible for income tax purposes as the transaction was accounted for as a tax-free exchange. For further detail, see Note 6 – Goodwill and Other Intangible Assets. The MainSource transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date, in accordance with FASB ASC Topic 805, Business Combinations. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available. The Company continues to finalize the fair values of loans, intangible assets and liabilities. As a result, the fair value adjustments are preliminary and may change as information becomes available. Fair value adjustments will be finalized no later than April 2019. The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value. As a condition of the merger, acquired assets and liabilities held for sale were divested subsequent to the closing of the merger. There was no gain or loss recorded in the Consolidated Statement of Income in conjunction with the divestiture. (Dollars in thousands) MainSource Purchase consideration Cash consideration $ 43 Stock consideration 1,045,876 Warrant consideration 14,460 Options consideration 1,577 Total purchase consideration 1,061,956 Assets acquired Cash 71,681 Investment securities available-for-sale 901,008 Investment securities held-to-maturity 171,423 Other investments 28,763 Loans 2,791,954 Premises and equipment 99,098 Other real estate owned 1,361 Intangible assets 41,750 Other assets 155,945 Assets held for sale 127,775 Total assets acquired 4,390,758 Liabilities assumed Deposits 3,264,038 Subordinated notes 49,027 FHLB advances 291,887 Other borrowings 205,620 Other liabilities 21,449 Liabilities held for sale 175,722 Total liabilities assumed 4,007,743 Net identifiable assets 383,015 Goodwill $ 678,941 The following table presents supplemental pro forma information as if the acquisition had occurred at the beginning of 2017. The pro forma information includes adjustments for interest income on acquired loans, amortization of intangible assets arising from the transaction, depreciation expense on property acquired, interest expense on deposits acquired, merger-related expenses incurred and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed date. The disclosures regarding the results of operations for MSFG subsequent to its acquisition date are omitted as this information is not practical to obtain. The Company converted MSFG's core system in the second quarter of 2018, which is the same quarter as its acquisition date. Six months ended June 30, (Dollars in thousands, except per share data) 2018 2017 Pro Forma Condensed Combined Income Statement Information Net interest income $ 242,130 $ 219,984 Net income $ 106,556 $ 58,755 Basic earnings per share $ 1.09 $ 0.61 Diluted earnings per share $ 1.08 $ 0.60 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | 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 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. |
Basis of Presentation Policy | The Consolidated Financial Statements of First Financial Bancorp., a financial holding company principally serving Ohio, Indiana, Kentucky and Illinois, include the accounts and operations of First Financial and its wholly-owned subsidiary, First Financial Bank. All significant intercompany transactions and accounts have been eliminated in consolidation.  Certain reclassifications of prior periods' amounts have been made to conform to current year presentation. Such reclassifications had no effect on net earnings. |
Use of Estimates, Policy | The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. These estimates, assumptions and judgments are inherently subjective and may be susceptible to significant change. Actual realized amounts could differ materially from these estimates. |
Loans and Leases Receivable, Past Due Status, Policy | 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. |
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 90 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. When a loan is classified as nonaccrual, the accrual of interest income is discontinued and previously accrued but unpaid interest is reversed. Any payments received while a loan is on nonaccrual status are applied as a reduction to the carrying value of the loan. A loan classified as nonaccrual may return to accrual status if collection of future principal and interest payments is no longer doubtful. 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 provision for loan and lease losses or prospective yield adjustments. |
Loans and Leases Receivable, Troubled Debt Restructuring Policy | A loan modification is considered a TDR when the borrower is experiencing financial difficulty and 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. |
Impaired Financing Receivable, Policy | First Financial individually reviews all impaired commercial loan relationships, as well as consumer loan TDRs, greater than $250,000 |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy | OREO consists of properties acquired by the Company primarily through the loan foreclosure or repossession process, or other resolution activity that results in partial or total satisfaction of problem loans. |
Loans and Leases Receivable, Allowance for Loan Losses Policy | Management maintains the ALLL at a level that it considers sufficient to absorb probable incurred loan and lease losses inherent in the portfolio. Management determines the adequacy of the ALLL based on historical loss experience as well as other significant factors such as composition of the portfolio, economic conditions, geographic footprint, the results of periodic internal and external evaluations of delinquent, nonaccrual and classified loans and any other adverse situations that may affect a specific borrower's ability to repay, including the timing of future payments. |
Goodwill and Intangible Assets, Goodwill, Policy | Assets and liabilities acquired in a business combination 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 and Intangible Assets, Goodwill Impairment Policy | Goodwill is evaluated 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 | Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis |
Income Tax, Policy | The unrecognized tax benefits relate to state income tax exposures from taking tax positions where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial. |
Commitments and Contingencies, Policy | First Financial offers a variety of financial instruments including standby letters of credit and outstanding commitments to extend credit to assist clients in meeting their requirement for liquidity and credit enhancement. GAAP does not require these financial instruments to be recorded in the Consolidated Financial Statements. |
Fair Value Measurement, Policy [Policy Text Block] | The fair value framework as disclosed in the 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. |
Fair Value of Financial Instruments, Policy | The following methods, assumptions and valuation techniques were used by First Financial to measure different financial assets and liabilities at fair value on a recurring or nonrecurring basis. 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 previously described are considered Level 3. First Financial utilizes values provided by third-party pricing vendors to price the investment securities portfolio in accordance with the fair value hierarchy of the Fair Value Topic and reviews the pricing methodologies utilized by the pricing vendors to ensure that the fair value determination is consistent with the applicable accounting guidance. First Financial’s pricing process includes a series of quality assurance activities where prices are compared to recent market conditions, historical prices and other independent pricing services. Further, the Company periodically validates the fair value of a sample of securities in the portfolio by comparing the fair values to prices from other independent sources for the same or similar securities. First Financial analyzes unusual or significant variances, conducts additional research with the pricing vendor, and if necessary, takes appropriate action based on its findings. The results of the quality assurance process are incorporated into the selection of pricing providers by the portfolio manager. Impaired loans. The fair value of impaired loans are specifically reviewed for purposes of determining the appropriate amount of impairment to be allocated to the ALLL. 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 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 on an outside appraisal, if deemed significant, or the net book value on the applicable borrower financial statements. 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 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. OREO. Assets acquired through loan foreclosure are recorded at fair value less costs to sell, with any difference between the fair value of the property and the carrying value of the loan recorded as a charge-off. If the fair value is higher than the carrying amount of the loan, the excess is recognized first as a recovery and then as noninterest income. Subsequent declines in value are reported as adjustments to the carrying amount and are recorded in noninterest expense. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value differs from the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. The Company classifies OREO in level 3 of the fair value hierarchy. Derivatives. |
Loan Commitments, Policy [Policy Text Block] | Loan commitments are agreements to extend credit to a client, absent any violation of conditions 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. |
Other Contract-Mortgage | |
Derivatives, Methods of Accounting, Hedging Derivatives, Policy | First Financial enters into IRLCs and forward commitments for the future delivery of mortgage loans to third party investors, which are considered derivatives. When borrowers secure an IRLC with First Financial and the loan is intended to be sold, First Financial will enter into forward commitments for the future delivery of the loans to third party investors in order to hedge against the effect of changes in interest rates impacting IRLCs and loans held for sale. |
Credit Risk | |
Derivatives, Methods of Accounting, Hedging Derivatives, Policy | First Financial manages market value credit risk through counterparty credit policies, which 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 |
Fair Value Hedges | |
Derivatives, Methods of Accounting, Hedging Derivatives, Policy | First Financial utilizes interest rate swaps as a means to offer commercial borrowers fixed rate funding while providing the Company with floating rate assets. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 : Held-to-maturity Available-for-sale (Dollars in thousands) Amortized Unrecognized gain Unrecognized loss Fair Amortized cost Unrealized gain Unrealized loss Fair U.S. Treasuries $ 0 $ 0 $ 0 $ 0 $ 98 $ 0 $ (3 ) $ 95 Securities of U.S. government agencies and corporations 0 0 0 0 34,896 84 (452 ) 34,528 Mortgage-backed securities - residential 31,857 0 (1,515 ) 30,342 644,358 1,314 (10,152 ) 635,520 Mortgage-backed securities - commercial 152,906 13 (5,503 ) 147,416 290,930 106 (5,059 ) 285,977 Collateralized mortgage obligations 13,982 0 (675 ) 13,307 873,923 965 (10,313 ) 864,575 Obligations of state and other political subdivisions 245,212 936 (1,428 ) 244,720 250,993 2,214 (1,910 ) 251,297 Asset-backed securities 0 0 0 0 492,702 879 (1,354 ) 492,227 Other securities 0 0 0 0 89,357 1,938 (605 ) 90,690 Total $ 443,957 $ 949 $ (9,121 ) $ 435,785 $ 2,677,257 $ 7,500 $ (29,848 ) $ 2,654,909 The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2017 : Held-to-maturity Available-for-sale (Dollars in thousands) Amortized Unrecognized gain Unrecognized Fair Amortized Unrealized Unrealized Fair U.S. Treasuries $ 0 $ 0 $ 0 $ 0 $ 98 $ 0 $ (1 ) $ 97 Securities of U.S. government agencies and corporations 11,168 0 (76 ) 11,092 15,695 220 0 15,915 Mortgage-backed securities - residential 162,093 2,042 (1,535 ) 162,600 290,793 849 (2,599 ) 289,043 Mortgage-backed securities - commercial 255,027 1,372 (3,000 ) 253,399 150,356 164 (1,417 ) 149,103 Collateralized mortgage obligations 143,545 354 (1,602 ) 142,297 306,095 1,158 (1,861 ) 305,392 Obligations of state and other political subdivisions 82,175 1,804 (266 ) 83,713 124,269 2,162 (676 ) 125,755 Asset-backed securities 0 0 0 0 377,655 1,628 (306 ) 378,977 Other securities 0 0 0 0 83,266 2,147 (287 ) 85,126 Total $ 654,008 $ 5,572 $ (6,479 ) $ 653,101 $ 1,348,227 $ 8,328 $ (7,147 ) $ 1,349,408 |
Summary of Investment Securities by Estimated Maturity | The following table provides a summary of investment securities by contractual maturity as of June 30, 2018 , except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments. Held-to-maturity Available-for-sale (Dollars in thousands) Amortized cost Fair value Amortized cost Fair value By Contractual Maturity: Due in one year or less $ 0 $ 0 $ 4,125 $ 4,123 Due after one year through five years 275 279 70,801 70,802 Due after five years through ten years 15,799 15,778 140,577 142,222 Due after ten years 229,138 228,663 159,841 159,463 Mortgage-backed securities - residential 31,857 30,342 644,358 635,520 Mortgage-backed securities - commercial 152,906 147,416 290,930 285,977 Collateralized mortgage obligations 13,982 13,307 873,923 864,575 Asset-backed securities 0 0 492,702 492,227 Total $ 443,957 $ 435,785 $ 2,677,257 $ 2,654,909 |
Age of Gross Unrealized Losses and Associated Fair Value by Investment Category | The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position, aggregated by investment category and the length of time the individual securities have been in a continuous loss position: June 30, 2018 Less than 12 months 12 months or more Total (Dollars in thousands) Fair value Unrealized loss Fair Unrealized Fair Unrealized U.S. Treasuries $ 95 $ (3 ) $ 0 $ 0 $ 95 $ (3 ) Securities of U.S. Government agencies and corporations 19,890 (311 ) 5,379 (141 ) 25,269 (452 ) Mortgage-backed securities - residential 488,725 (5,650 ) 129,218 (6,017 ) 617,943 (11,667 ) Mortgage-backed securities - commercial 278,366 (5,414 ) 88,624 (5,148 ) 366,990 (10,562 ) Collateralized mortgage obligations 628,667 (6,910 ) 99,142 (4,078 ) 727,809 (10,988 ) Obligations of state and other political subdivisions 186,269 (2,195 ) 27,441 (1,143 ) 213,710 (3,338 ) Asset-backed securities 219,064 (1,215 ) 13,591 (139 ) 232,655 (1,354 ) Other securities 17,299 (226 ) 7,571 (379 ) 24,870 (605 ) Total $ 1,838,375 $ (21,924 ) $ 370,966 $ (17,045 ) $ 2,209,341 $ (38,969 ) December 31, 2017 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) value loss value loss value loss U.S. Treasuries $ 97 $ (1 ) $ 0 $ 0 $ 97 $ (1 ) Securities of U.S. Government agencies and corporations 11,092 (76 ) 0 0 11,092 (76 ) Mortgage-backed securities - residential 175,183 (1,109 ) 108,782 (3,025 ) 283,965 (4,134 ) Mortgage-backed securities - commercial 132,818 (1,713 ) 72,139 (2,704 ) 204,957 (4,417 ) Collateralized mortgage obligations 164,909 (1,138 ) 101,436 (2,325 ) 266,345 (3,463 ) Obligations of state and other political subdivisions 38,450 (507 ) 21,639 (435 ) 60,089 (942 ) Asset-backed securities 44,941 (200 ) 24,396 (106 ) 69,337 (306 ) Other securities 2,605 (1 ) 7,124 (286 ) 9,729 (287 ) Total $ 570,095 $ (4,745 ) $ 335,516 $ (8,881 ) $ 905,611 $ (13,626 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Commercial and Consumer Credit Exposure by Risk Attribute | Commercial and consumer credit exposure by risk attribute was as follows: As of June 30, 2018 Commercial Real Estate Lease (Dollars in thousands) & industrial Construction Commercial financing Total Pass $ 2,367,649 $ 543,479 $ 3,794,902 $ 94,763 $ 6,800,793 Special Mention 24,261 11,947 29,399 0 65,607 Substandard 48,686 42 64,692 1,435 114,855 Doubtful 0 0 0 0 0 Total $ 2,440,596 $ 555,468 $ 3,888,993 $ 96,198 $ 6,981,255 (Dollars in thousands) Residential real estate Home equity Installment Credit card Total Performing $ 905,649 $ 828,558 $ 100,422 $ 48,665 $ 1,883,294 Nonperforming 13,255 6,473 304 0 20,032 Total $ 918,904 $ 835,031 $ 100,726 $ 48,665 $ 1,903,326 As of December 31, 2017 Commercial Real Estate Lease (Dollars in thousands) & industrial Construction Commercial financing Total Pass $ 1,882,464 $ 467,687 $ 2,446,999 $ 88,078 $ 4,885,228 Special Mention 6,226 0 4,436 0 10,662 Substandard 24,053 43 38,656 1,269 64,021 Doubtful 0 0 0 0 0 Total $ 1,912,743 $ 467,730 $ 2,490,091 $ 89,347 $ 4,959,911 (Dollars in thousands) Residential real estate Home equity Installment Credit card Total Performing $ 463,459 $ 489,148 $ 41,331 $ 46,691 $ 1,040,629 Nonperforming 7,932 4,456 255 0 12,643 Total $ 471,391 $ 493,604 $ 41,586 $ 46,691 $ 1,053,272 |
Loan Delinquency, including Nonaccrual Loans | Loan delinquency, including loans classified as nonaccrual, was as follows: As of June 30, 2018 (Dollars in thousands) 30 – 59 60 – 89 > 90 days Total Current Subtotal Purchased impaired Total > 90 days Loans Commercial & industrial $ 1,885 $ 389 $ 2,814 $ 5,088 $ 2,429,204 $ 2,434,292 $ 6,304 $ 2,440,596 $ 0 Lease financing 0 0 0 0 96,198 96,198 0 96,198 0 Construction real estate 447 0 0 447 554,754 555,201 267 555,468 0 Commercial real estate 3,291 1,829 15,999 21,119 3,803,534 3,824,653 64,340 3,888,993 16 Residential real estate 1,962 601 2,945 5,508 872,404 877,912 40,992 918,904 0 Home equity 3,834 750 3,443 8,027 822,359 830,386 4,645 835,031 0 Installment 165 22 263 450 99,669 100,119 607 100,726 0 Credit card 427 216 311 954 47,711 48,665 0 48,665 311 Total $ 12,011 $ 3,807 $ 25,775 $ 41,593 $ 8,725,833 $ 8,767,426 $ 117,155 $ 8,884,581 $ 327 As of December 31, 2017 (Dollars in thousands) 30 – 59 60 – 89 > 90 days Total Current Subtotal Purchased impaired Total > 90 days Loans Commercial & industrial $ 755 $ 1,657 $ 5,078 $ 7,490 $ 1,901,821 $ 1,909,311 $ 3,432 $ 1,912,743 $ 0 Lease financing 485 0 0 485 88,862 89,347 0 89,347 0 Construction real estate 234 0 0 234 467,216 467,450 280 467,730 0 Commercial real estate 1,716 201 8,777 10,694 2,419,969 2,430,663 59,428 2,490,091 0 Residential real estate 526 811 1,992 3,329 430,500 433,829 37,562 471,391 0 Home equity 2,716 394 1,753 4,863 485,127 489,990 3,614 493,604 0 Installment 179 29 205 413 40,529 40,942 644 41,586 0 Credit card 285 87 62 434 46,257 46,691 0 46,691 62 Total $ 6,896 $ 3,179 $ 17,867 $ 27,942 $ 5,880,281 $ 5,908,223 $ 104,960 $ 6,013,183 $ 62 |
Loans Restructured During Period | The following tables provide information on loan modifications classified as TDRs during the three and six months ended June 30, 2018 and 2017 : Three months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Number of loans Pre-modification loan balance Period end balance Number of loans Pre-modification loan balance Period end balance Commercial & industrial 8 $ 6,221 $ 6,183 4 $ 2,177 $ 2,183 Construction real estate 0 0 0 0 0 0 Commercial real estate 4 2,047 2,016 6 1,506 1,449 Residential real estate 1 201 201 0 0 0 Home equity 0 0 0 0 0 0 Installment 0 0 0 0 0 0 Total 13 $ 8,469 $ 8,400 10 $ 3,683 $ 3,632 Six months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Number of loans Pre-modification loan balance Period end balance Number of loans Pre-modification loan balance Period end balance Commercial & industrial 12 $ 7,149 $ 7,096 6 $ 5,679 $ 5,624 Construction real estate 0 0 0 0 0 0 Commercial real estate 6 2,119 2,088 6 1,506 1,449 Residential real estate 3 294 294 0 0 0 Home equity 0 0 0 0 0 0 Installment 0 0 0 0 0 0 Total 21 $ 9,562 $ 9,478 12 $ 7,185 $ 7,073 |
Loans Restructured, Modifications | The following table provides information on how TDRs were modified during the three and six months ended June 30, 2018 and 2017 : Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Extended maturities $ 2,000 $ 2,587 $ 2,888 $ 3,261 Adjusted interest rates 0 0 52 2,767 Combination of rate and maturity changes 0 180 0 180 Forbearance 6,199 827 6,199 827 Other (1) 201 38 339 38 Total $ 8,400 $ 3,632 $ 9,478 $ 7,073 (1) Includes covenant modifications and other concessions, or combination of concessions, that do not consist of interest rate adjustments, forbearance and maturity extensions |
Nonaccrual, Restructured and Impaired Loans | The following table provides information on impaired loans, excluding purchased impaired loans: (Dollars in thousands) June 30, 2018 December 31, 2017 Impaired loans Nonaccrual loans (1) Commercial & industrial $ 3,448 $ 5,229 Lease financing 0 82 Construction real estate 24 29 Commercial real estate 21,593 10,616 Residential real estate 9,278 4,140 Home equity 5,820 3,743 Installment 299 243 Nonaccrual loans 40,462 24,082 Accruing troubled debt restructurings 21,839 17,545 Total impaired loans $ 62,301 $ 41,627 (1) Nonaccrual loans include nonaccrual TDRs of $5.9 million and $6.4 million as of June 30, 2018 and December 31, 2017 , respectively. Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Interest income effect on impaired loans Gross amount of interest that would have been recorded under original terms $ 1,132 $ 1,158 $ 1,934 $ 1,974 Interest included in income Nonaccrual loans 146 163 226 305 Troubled debt restructurings 189 169 313 395 Total interest included in income 335 332 539 700 Net impact on interest income $ 797 $ 826 $ 1,395 $ 1,274 |
Investment in Impaired Loans | First Financial's investment in impaired loans was as follows: As of June 30, 2018 As of December 31, 2017 (Dollars in thousands) Current balance Contractual principal balance Related allowance Current balance Contractual Related Loans with no related allowance recorded Commercial & industrial $ 10,856 $ 14,647 $ 0 $ 7,162 $ 8,460 $ 0 Lease financing 0 0 0 82 82 0 Construction real estate 24 57 0 29 60 0 Commercial real estate 30,655 36,421 0 18,423 20,837 0 Residential real estate 12,216 14,383 0 6,876 8,145 0 Home equity 6,372 7,311 0 4,356 5,399 0 Installment 304 603 0 255 422 0 Total 60,427 73,422 0 37,183 43,405 0 Loans with an allowance recorded Commercial & industrial 379 379 179 169 169 169 Lease financing 0 0 0 0 0 0 Construction real estate 0 0 0 0 0 0 Commercial real estate 356 356 25 3,119 3,120 448 Residential real estate 1,039 1,039 160 1,056 1,063 160 Home equity 100 100 2 100 100 2 Installment 0 0 0 0 0 0 Total 1,874 1,874 366 4,444 4,452 779 Total Commercial & industrial 11,235 15,026 179 7,331 8,629 169 Lease financing 0 0 0 82 82 0 Construction real estate 24 57 0 29 60 0 Commercial real estate 31,011 36,777 25 21,542 23,957 448 Residential real estate 13,255 15,422 160 7,932 9,208 160 Home equity 6,472 7,411 2 4,456 5,499 2 Installment 304 603 0 255 422 0 Total $ 62,301 $ 75,296 $ 366 $ 41,627 $ 47,857 $ 779 First Financial's average impaired loans by class and interest income recognized by class was as follows: Three months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Average Interest Average Interest Loans with no related allowance recorded Commercial & industrial $ 9,714 $ 73 $ 17,198 $ 87 Lease financing 0 0 98 1 Construction real estate 25 1 1,075 0 Commercial real estate 27,516 140 25,465 144 Residential real estate 9,173 76 7,605 46 Home equity 5,222 27 3,926 27 Installment 305 1 357 1 Total 51,955 318 55,724 306 Loans with an allowance recorded Commercial & industrial 309 6 2,301 11 Lease financing 0 0 0 0 Construction real estate 0 0 0 0 Commercial real estate 358 3 658 8 Residential real estate 1,042 7 1,126 6 Home equity 101 1 101 1 Installment 0 0 0 0 Total 1,810 17 4,186 26 Total Commercial & industrial 10,023 79 19,499 98 Lease financing 0 0 98 1 Construction real estate 25 1 1,075 0 Commercial real estate 27,874 143 26,123 152 Residential real estate 10,215 83 8,731 52 Home equity 5,323 28 4,027 28 Installment 305 1 357 1 Total $ 53,765 $ 335 $ 59,910 $ 332 Six months ended June 30, 2018 June 30, 2017 (Dollars in thousands) Average Interest Average Interest Loans with no related allowance recorded Commercial & industrial $ 8,863 $ 99 $ 15,607 $ 196 Lease financing 27 0 149 2 Construction real estate 26 2 538 0 Commercial real estate 24,485 239 19,939 304 Residential real estate 8,407 123 8,032 92 Home equity 4,933 47 4,111 51 Installment 288 1 413 3 Total 47,029 511 48,789 648 Loans with an allowance recorded Commercial & industrial 262 6 1,094 24 Lease financing 0 0 0 0 Construction real estate 0 0 0 0 Commercial real estate 1,278 6 4,374 13 Residential real estate 1,047 14 1,185 13 Home equity 100 2 101 2 Installment 0 0 0 0 Total 2,687 28 6,754 52 Total Commercial & industrial 9,125 105 16,701 220 Lease financing 27 0 149 2 Construction real estate 26 2 538 0 Commercial real estate 25,763 245 24,313 317 Residential real estate 9,454 137 9,217 105 Home equity 5,033 49 4,212 53 Installment 288 1 413 3 Total $ 49,716 $ 539 $ 55,543 $ 700 |
Changes in Other Real Estate Owned | Changes in OREO were as follows: Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 1,065 $ 5,300 $ 2,781 $ 6,284 Additions Commercial & industrial 1,020 50 1,190 172 Residential real estate 525 1,913 984 2,078 Total additions 1,545 1,963 2,174 2,250 Disposals Commercial & industrial (326 ) (682 ) (2,430 ) (1,607 ) Residential real estate (292 ) (448 ) (410 ) (685 ) Total disposals (618 ) (1,130 ) (2,840 ) (2,292 ) Valuation adjustment Commercial & industrial 0 (116 ) (97 ) (162 ) Residential real estate (139 ) (56 ) (165 ) (119 ) Total valuation adjustment (139 ) (172 ) (262 ) (281 ) Balance at end of period $ 1,853 $ 5,961 $ 1,853 $ 5,961 |
ALLOWANCE FOR LOAN AND LEASE 28
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses by Classification | Changes in the ALLL by loan category were as follows: Three months ended June 30, 2018 Real Estate (Dollars in thousands) Commercial and industrial Lease financing Construction Commercial Residential Home Equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 18,038 $ 626 $ 4,267 $ 20,321 $ 4,727 $ 4,828 $ 290 $ 1,283 $ 54,380 Provision for loan and lease losses 3,328 170 (282 ) (619 ) (28 ) 171 136 859 3,735 Gross charge-offs (4,356 ) 0 0 (78 ) (101 ) (385 ) (218 ) (684 ) (5,822 ) Recoveries 518 1 0 887 70 187 82 38 1,783 Total net charge-offs (3,838 ) 1 0 809 (31 ) (198 ) (136 ) (646 ) (4,039 ) Ending allowance for loan and lease losses $ 17,528 $ 797 $ 3,985 $ 20,511 $ 4,668 $ 4,801 $ 290 $ 1,496 $ 54,076 Three months ended June 30, 2017 Real Estate (Dollars in thousands) Commercial and industrial Lease financing Construction Commercial Residential Home Equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 17,148 $ 616 $ 3,607 $ 23,745 $ 5,485 $ 3,774 $ 419 $ 1,532 $ 56,326 Provision for loan and lease losses 3,537 (67 ) (280 ) (2,941 ) (305 ) 526 19 (22 ) 467 Loans charged off (3,065 ) 0 0 (485 ) (223 ) (384 ) (126 ) (215 ) (4,498 ) Recoveries 693 1 89 1,398 59 222 43 73 2,578 Total net charge-offs (2,372 ) 1 89 913 (164 ) (162 ) (83 ) (142 ) (1,920 ) Ending allowance for loan and lease losses $ 18,313 $ 550 $ 3,416 $ 21,717 $ 5,016 $ 4,138 $ 355 $ 1,368 $ 54,873 Six months ended June 30, 2018 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 17,598 $ 675 $ 3,577 $ 20,930 $ 4,683 $ 4,935 $ 307 $ 1,316 $ 54,021 Provision for loan and lease losses 4,217 121 408 196 86 (123 ) 87 1,046 6,038 Loans charged off (5,241 ) 0 0 (2,254 ) (197 ) (627 ) (234 ) (938 ) (9,491 ) Recoveries 954 1 0 1,639 96 616 130 72 3,508 Total net charge-offs (4,287 ) 1 0 (615 ) (101 ) (11 ) (104 ) (866 ) (5,983 ) Ending allowance for loan and lease losses $ 17,528 $ 797 $ 3,985 $ 20,511 $ 4,668 $ 4,801 $ 290 $ 1,496 $ 54,076 As of June 30, 2018 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Ending allowance balance attributable to loans Individually evaluated for impairment $ 179 $ 0 $ 0 $ 25 $ 160 $ 2 $ 0 $ 0 $ 366 Collectively evaluated for impairment 17,349 797 3,985 20,486 4,508 4,799 290 1,496 53,710 Ending allowance for loan and lease losses $ 17,528 $ 797 $ 3,985 $ 20,511 $ 4,668 $ 4,801 $ 290 $ 1,496 $ 54,076 Loans Individually evaluated for impairment $ 11,235 $ 0 $ 24 $ 31,011 $ 13,255 $ 6,472 $ 304 $ 0 $ 62,301 Collectively evaluated for impairment 2,429,361 96,198 555,444 3,857,982 905,649 828,559 100,422 48,665 8,822,280 Total loans $ 2,440,596 $ 96,198 $ 555,468 $ 3,888,993 $ 918,904 $ 835,031 $ 100,726 $ 48,665 $ 8,884,581 Six months ended June 30, 2017 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Allowance for loan and lease losses: Balance at beginning of period $ 19,225 $ 716 $ 3,282 $ 26,540 $ 3,208 $ 3,043 $ 388 $ 1,559 $ 57,961 Provision for loan and lease losses 2,941 (167 ) 45 (5,507 ) 2,024 1,331 28 139 834 Loans charged off (4,808 ) 0 0 (970 ) (284 ) (564 ) (175 ) (447 ) (7,248 ) Recoveries 955 1 89 1,654 68 328 114 117 3,326 Total net charge-offs (3,853 ) 1 89 684 (216 ) (236 ) (61 ) (330 ) (3,922 ) Ending allowance for loan and lease losses $ 18,313 $ 550 $ 3,416 $ 21,717 $ 5,016 $ 4,138 $ 355 $ 1,368 $ 54,873 As of December 31, 2017 Real Estate (Dollars in thousands) Commercial & industrial Lease financing Construction Commercial Residential Home equity Installment Credit card Total Ending allowance balance attributable to loans Individually evaluated for impairment $ 169 $ 0 $ 0 $ 448 $ 160 $ 2 $ 0 $ 0 $ 779 Collectively evaluated for impairment 17,429 675 3,577 20,482 4,523 4,933 307 1,316 53,242 Ending allowance for loan and lease losses $ 17,598 $ 675 $ 3,577 $ 20,930 $ 4,683 $ 4,935 $ 307 $ 1,316 $ 54,021 Loans Individually evaluated for impairment $ 7,331 $ 82 $ 29 $ 21,542 $ 7,932 $ 4,456 $ 255 $ 0 $ 41,627 Collectively evaluated for impairment 1,905,412 89,265 467,701 2,468,549 463,459 489,148 41,331 46,691 5,971,556 Total loans $ 1,912,743 $ 89,347 $ 467,730 $ 2,490,091 $ 471,391 $ 493,604 $ 41,586 $ 46,691 $ 6,013,183 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | (Dollars in thousands) June 30, December 31, Balance at beginning of year $ 204,084 $ 204,084 Goodwill resulting from business combinations 678,941 0 Balance at end of period $ 883,025 $ 204,084 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following is a summary of First Financial's long-term debt: June 30, 2018 December 31, 2017 (Dollars in thousands) Amount Average rate Amount Average rate Subordinated notes $ 177,887 5.13 % $ 120,000 5.13 % Unamortized discount and debt issuance costs (8,819 ) N/A (1,362 ) N/A FHLB borrowings 299,580 1.90 % 241 1.09 % Capital loan with municipality 775 0.00 % 775 0.00 % Total long-term debt $ 469,423 3.16 % $ 119,654 5.14 % |
ACCUMULATED OTHER COMPREHENSI31
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Related Tax Effects Allocated to Other Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | The related tax effects allocated to other comprehensive incom e and reclassifications out of accumulated other comprehensive income (loss) are as follows: Three months ended June 30, 2018 Total other comprehensive income (loss) Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Reclass from Pre-tax Tax effect Net of tax Beginning Balance Net Activity Ending Balance Unrealized gain (loss) on investment securities $ (11,456 ) $ (30 ) $ (11,426 ) $ 2,448 $ (8,978 ) $ (10,051 ) $ (8,978 ) $ (19,029 ) Unrealized gain (loss) on derivatives 203 0 203 (44 ) 159 (545 ) 159 (386 ) Retirement obligation 0 (452 ) 452 42 494 (24,087 ) 494 (23,593 ) Total $ (11,253 ) $ (482 ) $ (10,771 ) $ 2,446 $ (8,325 ) $ (34,683 ) $ (8,325 ) $ (43,008 ) Three months ended June 30, 2017 Total other comprehensive income (loss) Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Reclass from Pre-tax Tax effect Net of tax Beginning Balance Net Activity Ending Balance Unrealized gain (loss) on investment securities $ 7,170 $ 838 $ 6,332 $ (2,256 ) $ 4,076 $ (3,062 ) $ 4,076 $ 1,014 Unrealized gain (loss) on derivatives 202 0 202 (74 ) 128 (963 ) 128 (835 ) Retirement obligation 0 (335 ) 335 (122 ) 213 (22,614 ) 213 (22,401 ) Total $ 7,372 $ 503 $ 6,869 $ (2,452 ) $ 4,417 $ (26,639 ) $ 4,417 $ (22,222 ) Six months ended June 30, 2018 Total other comprehensive income Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Pre-tax Tax effect Net of tax Beginning Balance Net Activity Reclass of Stranded Tax Effects Ending Balance Unrealized gain (loss) on investment securities $ (23,992 ) $ (30 ) $ (23,962 ) $ 5,154 $ (18,808 ) $ (182 ) $ (18,808 ) $ (39 ) $ (19,029 ) Unrealized gain (loss) on derivatives 405 0 405 (90 ) 315 (577 ) 315 (124 ) (386 ) Retirement obligation 0 (871 ) 871 (54 ) 817 (19,631 ) 817 (4,779 ) (23,593 ) Total $ (23,587 ) $ (901 ) $ (22,686 ) $ 5,010 $ (17,676 ) $ (20,390 ) $ (17,676 ) $ (4,942 ) $ (43,008 ) Six months ended June 30, 2017 Total other comprehensive income Total accumulated other comprehensive income (loss) (Dollars in thousands) Prior to Reclass Pre-tax Tax effect Net of tax Beginning Balance Net Activity Ending Balance Unrealized gain (loss) on investment securities $ 10,002 $ 1,354 $ 8,648 $ (3,085 ) $ 5,563 $ (4,549 ) $ 5,563 $ 1,014 Unrealized gain (loss) on derivatives 405 0 405 (149 ) 256 (1,091 ) 256 (835 ) Retirement obligation 0 (670 ) 670 (268 ) 402 (22,803 ) 402 (22,401 ) Total $ 10,407 $ 684 $ 9,723 $ (3,502 ) $ 6,221 $ (28,443 ) $ 6,221 $ (22,222 ) |
Other Accumulated Comprehensive income reclassified from AOCI | The following table presents the activity reclassified from accumulated other comprehensive income into income during the three and six month periods ended June 30, 2018 and 2017, respectively: Amount reclassified from accumulated other comprehensive income (1) Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Affected Line Item in the Consolidated Statements of Income Realized gain (loss) on securities available-for-sale $ (30 ) $ 838 $ (30 ) $ 1,354 Net gain (loss) on sales of investments securities Defined benefit pension plan Amortization of prior service cost (2) 103 104 206 207 Other noninterest expense (2018) Salaries and employee benefits (2017) Recognized net actuarial loss (2) (555 ) (439 ) (1,077 ) (877 ) Other noninterest expense (2018) Defined benefit pension plan total (452 ) (335 ) (871 ) (670 ) Total reclassifications for the period, before tax $ (482 ) $ 503 $ (901 ) $ 684 (1) Negative amounts are reductions to net income. (2) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments and Balances | The following table details the classification and amounts recognized in the Consolidated Balance Sheets for client derivatives: June 30, 2018 December 31, 2017 Estimated fair value Estimated fair value (Dollars in thousands) Balance sheet classification Notional amount Gain Loss Notional amount Gain Loss Client derivatives - instruments associated with loans Matched interest rate swaps with borrower Accrued interest and other assets $ 1,179,156 $ 3,261 $ (24,306 ) $ 837,040 $ 7,153 $ (5,529 ) Matched interest rate swaps with counterparty Accrued interest and other liabilities 1,179,156 24,306 (3,259 ) 837,040 5,529 (7,158 ) Total $ 2,358,312 $ 27,567 $ (27,565 ) $ 1,674,080 $ 12,682 $ (12,687 ) |
Disclosure by Type of Financial Instrument | The following table discloses the gross and net amounts of client derivative liabilities recognized in the Consolidated Balance Sheets: June 30, 2018 December 31, 2017 (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 Client derivatives Matched interest rate swaps with counterparty $ 27,567 $ (7,152 ) $ 20,415 $ 12,687 $ 2,279 $ 14,966 |
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 June 30, 2018 : Weighted-average rate (Dollars in thousands) Notional amount Average maturity (years) Fair value Receive Pay Client derivatives Receive fixed, matched interest rate swaps with borrower $ 1,179,156 4.8 $ (21,045 ) 4.50 % 4.25 % Pay fixed, matched interest rate swaps with counterparty 1,179,156 4.8 21,047 4.25 % 4.50 % Total client derivatives $ 2,358,312 4.8 $ 2 4.37 % 4.37 % |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [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 Statements of Income related to the Company's pension plan: Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Service cost $ 1,735 $ 1,239 $ 3,030 $ 2,477 Interest cost 601 589 1,191 1,178 Expected return on assets (2,450 ) (2,481 ) (4,910 ) (4,962 ) Amortization of prior service cost (103 ) (104 ) (206 ) (207 ) Net actuarial loss 555 439 1,077 877 Net periodic benefit cost (income) $ 338 $ (318 ) $ 182 $ (637 ) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six months ended June 30, June 30, (Dollars in thousands, except per share data) 2018 2017 2018 2017 Numerator Net income available to common shareholders $ 36,418 $ 22,736 $ 66,924 $ 47,150 Denominator Basic earnings per common share - weighted average shares 97,347,533 61,543,478 79,599,709 61,471,347 Effect of dilutive securities Employee stock awards 545,374 625,031 504,914 649,706 Warrants 539,165 65,513 524,872 66,420 Diluted earnings per common share - adjusted weighted average shares 98,432,072 62,234,022 80,629,495 62,187,473 Earnings per share available to common shareholders Basic $ 0.37 $ 0.37 $ 0.84 $ 0.77 Diluted $ 0.37 $ 0.37 $ 0.83 $ 0.76 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 Financial assets Cash and short-term investments $ 254,582 $ 254,582 $ 254,582 $ 0 $ 0 Investment securities held-to-maturity 443,957 435,785 0 435,785 0 Other investments 95,004 N/A N/A N/A N/A Loans held for sale 15,821 15,821 0 15,821 0 Loans and leases 8,830,505 8,847,519 0 0 8,847,519 Accrued interest receivable 40,152 40,152 0 13,939 26,213 Financial liabilities Deposits 10,103,747 10,073,140 0 10,073,140 0 Short-term borrowings 1,188,303 1,188,303 1,188,303 0 0 Long-term debt 469,423 462,478 0 462,478 0 Accrued interest payable 9,550 9,550 1,577 7,973 0 Carrying Estimated fair value (Dollars in thousands) value Total Level 1 Level 2 Level 3 December 31, 2017 Financial assets Cash and short-term investments $ 184,624 $ 184,624 $ 184,624 $ 0 $ 0 Investment securities held-to-maturity 654,008 653,101 0 653,101 0 Other investments 53,140 N/A N/A N/A N/A Loans held for sale 11,502 11,502 0 11,502 0 Loans and leases 5,959,162 6,006,656 0 0 6,006,656 Accrued interest receivable 24,496 24,496 0 8,265 16,231 Financial liabilities Deposits 6,895,046 6,884,615 0 6,884,615 0 Short-term borrowings 814,565 814,565 814,565 0 0 Long-term debt 119,654 117,908 0 117,908 0 Accrued interest payable 5,104 5,104 204 4,900 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 Assets/liabilities at fair value June 30, 2018 Assets Derivatives $ 0 $ 28,113 $ 0 $ 28,113 Investment securities available-for-sale 7,737 2,647,172 0 2,654,909 Total $ 7,737 $ 2,675,285 $ 0 $ 2,683,022 Liabilities Derivatives $ 0 $ 27,624 $ 0 $ 27,624 Fair value measurements using (Dollars in thousands) Level 1 Level 2 Level 3 Assets/liabilities at fair value December 31, 2017 Assets Derivatives $ 0 $ 12,757 $ 0 $ 12,757 Investment securities available-for-sale 2,969 1,346,439 0 1,349,408 Total $ 2,969 $ 1,359,196 $ 0 $ 1,362,165 Liabilities Derivatives $ 0 $ 12,755 $ 0 $ 12,755 |
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 June 30, 2018 Assets Impaired loans $ 0 $ 0 $ 531 OREO 0 0 284 Fair value measurements using (Dollars in thousands) Level 1 Level 2 Level 3 December 31, 2017 Assets Impaired loans $ 0 $ 0 $ 2,671 OREO 0 0 1,086 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table provides the purchase price calculation as of the acquisition date, identifiable assets purchased and liabilities assumed at their estimated fair value. As a condition of the merger, acquired assets and liabilities held for sale were divested subsequent to the closing of the merger. There was no gain or loss recorded in the Consolidated Statement of Income in conjunction with the divestiture. (Dollars in thousands) MainSource Purchase consideration Cash consideration $ 43 Stock consideration 1,045,876 Warrant consideration 14,460 Options consideration 1,577 Total purchase consideration 1,061,956 Assets acquired Cash 71,681 Investment securities available-for-sale 901,008 Investment securities held-to-maturity 171,423 Other investments 28,763 Loans 2,791,954 Premises and equipment 99,098 Other real estate owned 1,361 Intangible assets 41,750 Other assets 155,945 Assets held for sale 127,775 Total assets acquired 4,390,758 Liabilities assumed Deposits 3,264,038 Subordinated notes 49,027 FHLB advances 291,887 Other borrowings 205,620 Other liabilities 21,449 Liabilities held for sale 175,722 Total liabilities assumed 4,007,743 Net identifiable assets 383,015 Goodwill $ 678,941 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | Six months ended June 30, (Dollars in thousands, except per share data) 2018 2017 Pro Forma Condensed Combined Income Statement Information Net interest income $ 242,130 $ 219,984 Net income $ 106,556 $ 58,755 Basic earnings per share $ 1.09 $ 0.61 Diluted earnings per share $ 1.08 $ 0.60 |
RECENTLY ADOPTED AND ISSUED A37
RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS - Additional Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Reclassification from AOCI, Current Period, Tax | $ 0 |
Retained earnings | |
Reclassification from AOCI, Current Period, Tax | $ 4,942 |
INVESTMENTS INVESTMENTS - Addit
INVESTMENTS INVESTMENTS - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017 | |
Gain (Loss) on Investments [Line Items] | |||||
NumberOfSecuritiesInSecurityPortfolio | 1,385 | 1,385 | 775 | ||
NumberOfSecuritiesInUnrealizedLossPosition | 656 | 656 | 237 | ||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | $ 216,196 | $ 103,400 | $ 216,200 | $ 125,600 | |
Held-to-maturity Securities, Transferred Security, at Carrying Value | 367,900 | 367,900 | |||
Available-for-sale Securities, Gross Realized Gains | 3 | 1,000 | 3 | 1,500 | |
Available-for-sale Securities, Gross Realized Losses | $ 33 | $ 100 | $ 33 | $ 100 |
INVESTMENTS - Summary of Held-T
INVESTMENTS - Summary of Held-To-Maturity and Available-For-Sale Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investment Holdings [Line Items] | ||
Total | $ 443,957 | $ 654,008 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 949 | 5,572 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (9,121) | (6,479) |
Held-to-Maturity Market Value | 435,785 | 653,101 |
Total | 2,677,257 | 1,348,227 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 7,500 | 8,328 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (29,848) | (7,147) |
Investment securities available-for-sale | 2,654,909 | 1,349,408 |
U.S. Treasuries | ||
Investment Holdings [Line Items] | ||
Total | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 0 |
Held-to-Maturity Market Value | 0 | 0 |
Total | 98 | 98 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (3) | (1) |
Investment securities available-for-sale | 95 | 97 |
Securities of U.S. government agencies and corporations | ||
Investment Holdings [Line Items] | ||
Total | 0 | 11,168 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | (76) |
Held-to-Maturity Market Value | 0 | 11,092 |
Total | 34,896 | 15,695 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 84 | 220 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (452) | 0 |
Investment securities available-for-sale | 34,528 | 15,915 |
Residential Mortgage Backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Total | 31,857 | 162,093 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 2,042 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (1,515) | (1,535) |
Held-to-Maturity Market Value | 30,342 | 162,600 |
Total | 644,358 | 290,793 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 1,314 | 849 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (10,152) | (2,599) |
Investment securities available-for-sale | 635,520 | 289,043 |
Commercial Mortgage Backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Total | 152,906 | 255,027 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 13 | 1,372 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (5,503) | (3,000) |
Held-to-Maturity Market Value | 147,416 | 253,399 |
Total | 290,930 | 150,356 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 106 | 164 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (5,059) | (1,417) |
Investment securities available-for-sale | 285,977 | 149,103 |
Collateralized Mortgage Backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Total | 13,982 | 143,545 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 354 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (675) | (1,602) |
Held-to-Maturity Market Value | 13,307 | 142,297 |
Total | 873,923 | 306,095 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 965 | 1,158 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (10,313) | (1,861) |
Investment securities available-for-sale | 864,575 | 305,392 |
Obligations of state and other political subdivisions | ||
Investment Holdings [Line Items] | ||
Total | 245,212 | 82,175 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 936 | 1,804 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (1,428) | (266) |
Held-to-Maturity Market Value | 244,720 | 83,713 |
Total | 250,993 | 124,269 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 2,214 | 2,162 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (1,910) | (676) |
Investment securities available-for-sale | 251,297 | 125,755 |
Asset-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Total | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 0 |
Held-to-Maturity Market Value | 0 | 0 |
Total | 492,702 | 377,655 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 879 | 1,628 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (1,354) | (306) |
Investment securities available-for-sale | 492,227 | 378,977 |
Other securities | ||
Investment Holdings [Line Items] | ||
Total | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 0 |
Held-to-Maturity Market Value | 0 | 0 |
Total | 89,357 | 83,266 |
Available for Sale Securities Gross Unrealized Gain Accumulated In Investments | 1,938 | 2,147 |
Available for Sale Securities Gross Unrealized Loss Accumulated In Investments | (605) | (287) |
Investment securities available-for-sale | $ 90,690 | $ 85,126 |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investment Securities by Estimated Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Held-to-Maturity Amortized Cost | ||
Amortized Cost | $ 443,957 | $ 654,008 |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 435,785 | 653,101 |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 2,677,257 | 1,348,227 |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 2,654,909 | 1,349,408 |
One Year or Less [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 0 | |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 0 | |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 4,125 | |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 4,123 | |
After One Year Through Five Years [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 275 | |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 279 | |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 70,801 | |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 70,802 | |
After Five Years Through Ten Years [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 15,799 | |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 15,778 | |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 140,577 | |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 142,222 | |
After Ten Years [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 229,138 | |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 228,663 | |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 159,841 | |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 159,463 | |
Residential Mortgage Backed Securities [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 31,857 | 162,093 |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 30,342 | 162,600 |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 644,358 | 290,793 |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 635,520 | 289,043 |
Commercial Mortgage Backed Securities [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 152,906 | 255,027 |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 147,416 | 253,399 |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 290,930 | 150,356 |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 285,977 | 149,103 |
Collateralized Mortgage Backed Securities [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 13,982 | 143,545 |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 13,307 | 142,297 |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 873,923 | 306,095 |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | 864,575 | 305,392 |
Asset-backed Securities [Member] | ||
Held-to-Maturity Amortized Cost | ||
Amortized Cost | 0 | 0 |
Held-to-Maturity Market Value | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Available-for-Sale Amortized Cost | ||
Available-for-sale Securities, Amortized Cost Basis | 492,702 | 377,655 |
Available-for-Sale Market Value | ||
Investment securities available-for-sale | $ 492,227 | $ 378,977 |
INVESTMENTS - Age of Gross Unre
INVESTMENTS - Age of Gross Unrealized Losses and Associated Fair Value by Investment Category (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | $ 1,838,375 | $ 570,095 |
Less than 12 Months Unrealized Loss | (21,924) | (4,745) |
12 Months or More Fair Value | 370,966 | 335,516 |
12 Months or More Unrealized Loss | (17,045) | (8,881) |
Total Fair Value | 2,209,341 | 905,611 |
Total Unrealized Loss | (38,969) | (13,626) |
U.S. Treasuries | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 95 | 97 |
Less than 12 Months Unrealized Loss | (3) | (1) |
12 Months or More Fair Value | 0 | 0 |
12 Months or More Unrealized Loss | 0 | 0 |
Total Fair Value | 95 | 97 |
Total Unrealized Loss | (3) | (1) |
Securities of U.S. government agencies and corporations | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 19,890 | 11,092 |
Less than 12 Months Unrealized Loss | (311) | (76) |
12 Months or More Fair Value | 5,379 | 0 |
12 Months or More Unrealized Loss | (141) | 0 |
Total Fair Value | 25,269 | 11,092 |
Total Unrealized Loss | (452) | (76) |
Residential Mortgage Backed Securities [Member] | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 488,725 | 175,183 |
Less than 12 Months Unrealized Loss | (5,650) | (1,109) |
12 Months or More Fair Value | 129,218 | 108,782 |
12 Months or More Unrealized Loss | (6,017) | (3,025) |
Total Fair Value | 617,943 | 283,965 |
Total Unrealized Loss | (11,667) | (4,134) |
Commercial Mortgage Backed Securities [Member] | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 278,366 | 132,818 |
Less than 12 Months Unrealized Loss | (5,414) | (1,713) |
12 Months or More Fair Value | 88,624 | 72,139 |
12 Months or More Unrealized Loss | (5,148) | (2,704) |
Total Fair Value | 366,990 | 204,957 |
Total Unrealized Loss | (10,562) | (4,417) |
Collateralized Mortgage Backed Securities [Member] | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 628,667 | 164,909 |
Less than 12 Months Unrealized Loss | (6,910) | (1,138) |
12 Months or More Fair Value | 99,142 | 101,436 |
12 Months or More Unrealized Loss | (4,078) | (2,325) |
Total Fair Value | 727,809 | 266,345 |
Total Unrealized Loss | (10,988) | (3,463) |
Obligations of state and other political subdivisions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 186,269 | 38,450 |
Less than 12 Months Unrealized Loss | (2,195) | (507) |
12 Months or More Fair Value | 27,441 | 21,639 |
12 Months or More Unrealized Loss | (1,143) | (435) |
Total Fair Value | 213,710 | 60,089 |
Total Unrealized Loss | (3,338) | (942) |
Asset-backed Securities [Member] | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 219,064 | 44,941 |
Less than 12 Months Unrealized Loss | (1,215) | (200) |
12 Months or More Fair Value | 13,591 | 24,396 |
12 Months or More Unrealized Loss | (139) | (106) |
Total Fair Value | 232,655 | 69,337 |
Total Unrealized Loss | (1,354) | (306) |
Other securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 17,299 | 2,605 |
Less than 12 Months Unrealized Loss | (226) | (1) |
12 Months or More Fair Value | 7,571 | 7,124 |
12 Months or More Unrealized Loss | (379) | (286) |
Total Fair Value | 24,870 | 9,729 |
Total Unrealized Loss | $ (605) | $ (287) |
LOANS AND LEASES - Additional I
LOANS AND LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Purchased impaired loans | $ 117,155,000 | $ 117,155,000 | $ 104,960,000 | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 1,200,000 | ||||||||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 2,700,000 | ||||||||
Restructured Loans, Nonaccrual Status | 5,900,000 | 5,900,000 | 6,400,000 | ||||||
Write-downs | 139,000 | $ 172,000 | 262,000 | $ 281,000 | |||||
Gain (loss) on sale of other real estate owned | 283,000 | (162,000) | 206,000 | (186,000) | |||||
Real Estate Acquired Through Foreclosure | 1,853,000 | 5,961,000 | 1,853,000 | 5,961,000 | $ 1,065,000 | $ 2,781,000 | $ 5,300,000 | $ 6,284,000 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | 2,700,000,000 | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition | $ 2,900,000,000 | ||||||||
Commercial | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Restructured Loans, Loan Relationships, Review Threshold Amount Minimum | 250,000 | ||||||||
Residential real estate | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Restructured Loans, Loan Relationships, Review Threshold Amount Minimum | 250,000 | ||||||||
Write-downs | 139,000 | $ 56,000 | 165,000 | $ 119,000 | |||||
MainSource [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Purchased impaired loans | $ 24,100,000 | $ 24,100,000 |
LOANS AND LEASES - Commercial a
LOANS AND LEASES - Commercial and Consumer Credit Exposure by Risk Attribute (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | $ 2,440,596 | $ 1,912,743 |
Real Estate - Construction | 555,468 | 467,730 |
Real Estate - Commercial | 3,888,993 | 2,490,091 |
Lease financing | 96,198 | 89,347 |
Total Commercial | 6,981,255 | 4,959,911 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 2,367,649 | 1,882,464 |
Real Estate - Construction | 543,479 | 467,687 |
Real Estate - Commercial | 3,794,902 | 2,446,999 |
Lease financing | 94,763 | 88,078 |
Total Commercial | 6,800,793 | 4,885,228 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 24,261 | 6,226 |
Real Estate - Construction | 11,947 | 0 |
Real Estate - Commercial | 29,399 | 4,436 |
Lease financing | 0 | 0 |
Total Commercial | 65,607 | 10,662 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 48,686 | 24,053 |
Real Estate - Construction | 42 | 43 |
Real Estate - Commercial | 64,692 | 38,656 |
Lease financing | 1,435 | 1,269 |
Total Commercial | 114,855 | 64,021 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 0 | 0 |
Real Estate - Construction | 0 | 0 |
Real Estate - Commercial | 0 | 0 |
Lease financing | 0 | 0 |
Total Commercial | 0 | 0 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 918,904 | 471,391 |
Residential real estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 905,649 | 463,459 |
Residential real estate | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 13,255 | 7,932 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 835,031 | 493,604 |
Home equity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 828,558 | 489,148 |
Home equity | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 6,473 | 4,456 |
Installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 100,726 | 41,586 |
Installment | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 100,422 | 41,331 |
Installment | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 304 | 255 |
Credit card | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 48,665 | 46,691 |
Credit card | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 48,665 | 46,691 |
Credit card | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Total consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 1,903,326 | 1,053,272 |
Total consumer loans | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 1,883,294 | 1,040,629 |
Total consumer loans | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | $ 20,032 | $ 12,643 |
LOANS AND LEASES - Loan Delinqu
LOANS AND LEASES - Loan Delinquency, including Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 41,593 | $ 27,942 |
Current | 8,725,833 | 5,880,281 |
Loans and Leases Receivable, Gross | 8,767,426 | 5,908,223 |
Purchased impaired loans | 117,155 | 104,960 |
Total loans and leases | 8,884,581 | 6,013,183 |
> 90 days past due and still accruing | 327 | 62 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 12,011 | 6,896 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,807 | 3,179 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 25,775 | 17,867 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,088 | 7,490 |
Current | 2,429,204 | 1,901,821 |
Loans and Leases Receivable, Gross | 2,434,292 | 1,909,311 |
Purchased impaired loans | 6,304 | 3,432 |
Total loans and leases | 2,440,596 | 1,912,743 |
> 90 days past due and still accruing | 0 | 0 |
Commercial | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,885 | 755 |
Commercial | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 389 | 1,657 |
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,814 | 5,078 |
Lease financing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 485 |
Current | 96,198 | 88,862 |
Loans and Leases Receivable, Gross | 96,198 | 89,347 |
Purchased impaired loans | 0 | 0 |
Total loans and leases | 96,198 | 89,347 |
> 90 days past due and still accruing | 0 | 0 |
Lease financing | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 485 |
Lease financing | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Lease financing | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 447 | 234 |
Current | 554,754 | 467,216 |
Loans and Leases Receivable, Gross | 555,201 | 467,450 |
Purchased impaired loans | 267 | 280 |
Total loans and leases | 555,468 | 467,730 |
> 90 days past due and still accruing | 0 | 0 |
Construction real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 447 | 234 |
Construction real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Construction real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 21,119 | 10,694 |
Current | 3,803,534 | 2,419,969 |
Loans and Leases Receivable, Gross | 3,824,653 | 2,430,663 |
Purchased impaired loans | 64,340 | 59,428 |
Total loans and leases | 3,888,993 | 2,490,091 |
> 90 days past due and still accruing | 16 | 0 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,291 | 1,716 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,829 | 201 |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 15,999 | 8,777 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,508 | 3,329 |
Current | 872,404 | 430,500 |
Loans and Leases Receivable, Gross | 877,912 | 433,829 |
Purchased impaired loans | 40,992 | 37,562 |
Total loans and leases | 918,904 | 471,391 |
> 90 days past due and still accruing | 0 | 0 |
Residential real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,962 | 526 |
Residential real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 601 | 811 |
Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,945 | 1,992 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 8,027 | 4,863 |
Current | 822,359 | 485,127 |
Loans and Leases Receivable, Gross | 830,386 | 489,990 |
Purchased impaired loans | 4,645 | 3,614 |
Total loans and leases | 835,031 | 493,604 |
> 90 days past due and still accruing | 0 | 0 |
Home equity | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,834 | 2,716 |
Home equity | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 750 | 394 |
Home equity | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,443 | 1,753 |
Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 450 | 413 |
Current | 99,669 | 40,529 |
Loans and Leases Receivable, Gross | 100,119 | 40,942 |
Purchased impaired loans | 607 | 644 |
Total loans and leases | 100,726 | 41,586 |
> 90 days past due and still accruing | 0 | 0 |
Installment | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 165 | 179 |
Installment | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 22 | 29 |
Installment | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 263 | 205 |
Credit card | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 954 | 434 |
Current | 47,711 | 46,257 |
Loans and Leases Receivable, Gross | 48,665 | 46,691 |
Purchased impaired loans | 0 | 0 |
Total loans and leases | 48,665 | 46,691 |
> 90 days past due and still accruing | 311 | 62 |
Credit card | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 427 | 285 |
Credit card | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 216 | 87 |
Credit card | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 311 | $ 62 |
LOANS AND LEASES - Restructured
LOANS AND LEASES - Restructured Loans (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)loans | Jun. 30, 2017USD ($)loans | Jun. 30, 2018USD ($)loansd | Jun. 30, 2017USD ($)loans | Dec. 31, 2017USD ($)loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Extended Maturities | $ 2,000,000 | $ 2,587,000 | $ 2,888,000 | $ 3,261,000 | |
Adjusted Interest Rates | 0 | 0 | 52,000 | 2,767,000 | |
Combined Rate And Maturity | 0 | 180,000 | 0 | 180,000 | |
Forebearance Agreements | 6,199,000 | 827,000 | 6,199,000 | 827,000 | |
Other | 201,000 | 38,000 | 339,000 | 38,000 | |
Total | $ 8,400,000 | $ 3,632,000 | $ 9,478,000 | $ 7,073,000 | |
Restructured loans, Number of Loans | loans | 13 | 10 | 21 | 12 | |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | $ 8,469,000 | $ 3,683,000 | $ 9,562,000 | $ 7,185,000 | |
Restructured loans, Period End Balance | $ 8,400,000 | $ 3,632,000 | $ 9,478,000 | $ 7,073,000 | |
Restructured loans with payment default within 12 months of modification, Number of Loans | loans | 1 | 0 | 1 | 0 | |
Restructured loans with payment default within 12 months of modification, Period End Balance | $ 41,000 | $ 0 | $ 41,000 | $ 0 | |
Number of Restructured Loans | loans | 205 | 205 | 214 | ||
Total restructured loans | $ 27,800,000 | $ 27,800,000 | $ 23,900,000 | ||
Restructured loans on accrual status | 21,839,000 | 21,839,000 | 17,545,000 | ||
Restructured Loans, Nonaccrual Status | 5,900,000 | 5,900,000 | 6,400,000 | ||
Allowance for loan and lease losses lncluded in reserves for restructured loans | 1,100,000 | 1,100,000 | 1,300,000 | ||
Restructured loans uncollectible portion written off | 100,000 | $ 100,000 | |||
Accruing TDRs performing in accordance with restructured terms for more than one year | $ 13,100,000 | $ 13,100,000 | $ 17,200,000 | ||
Restructured loans performance threshold (days) | d | 90 | ||||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans, Number of Loans | loans | 8 | 4 | 12 | 6 | |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | $ 6,221,000 | $ 2,177,000 | $ 7,149,000 | $ 5,679,000 | |
Restructured loans, Period End Balance | $ 6,183,000 | $ 2,183,000 | $ 7,096,000 | $ 5,624,000 | |
Construction real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans, Number of Loans | 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 | |
Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans, Number of Loans | loans | 4 | 6 | 6 | 6 | |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | $ 2,047,000 | $ 1,506,000 | $ 2,119,000 | $ 1,506,000 | |
Restructured loans, Period End Balance | $ 2,016,000 | $ 1,449,000 | $ 2,088,000 | $ 1,449,000 | |
Residential real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans, Number of Loans | loans | 1 | 0 | 3 | 0 | |
Restructured loans, Restructured loans, Pre-Modification Loan Balance | $ 201,000 | $ 0 | $ 294,000 | $ 0 | |
Restructured loans, Period End Balance | $ 201,000 | $ 0 | 294,000 | $ 0 | |
Restructured Loans, Loan Relationships, Review Threshold Amount Minimum | $ 250,000 | ||||
Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans, Number of Loans | 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 | |
Installment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans, Number of Loans | 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 |
LOANS AND LEASES - Nonaccrual,
LOANS AND LEASES - Nonaccrual, Restructured and Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | $ 53,765 | $ 59,910 | $ 49,716 | $ 55,543 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 17 | 26 | 28 | 52 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 318 | 306 | 511 | 648 | |
Nonaccrual loans | 40,462 | 40,462 | $ 24,082 | ||
Accruing trouble debt restructurings | 21,839 | 21,839 | 17,545 | ||
Total impaired loans | 62,301 | 62,301 | 41,627 | ||
Restructured loans - nonaccrual status | 5,900 | 5,900 | 6,400 | ||
Interest income effect | |||||
Gross amount of interest that would have been recorded under original terms | 1,132 | 1,158 | 1,934 | 1,974 | |
Interest included in income | |||||
Nonaccrual loans | 146 | 163 | 226 | 305 | |
Troubled debt restructurings | 189 | 169 | 313 | 395 | |
Total interest included in income | 335 | 332 | 539 | 700 | |
Net impact on interest income | 797 | 826 | 1,395 | 1,274 | |
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 10,023 | 19,499 | 9,125 | 16,701 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 6 | 11 | 6 | 24 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 73 | 87 | 99 | 196 | |
Nonaccrual loans | 3,448 | 3,448 | 5,229 | ||
Total impaired loans | 11,235 | 11,235 | 7,331 | ||
Interest included in income | |||||
Total interest included in income | 79 | 98 | 105 | 220 | |
Lease financing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 0 | 98 | 27 | 149 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 1 | 0 | 2 | |
Nonaccrual loans | 0 | 0 | 82 | ||
Total impaired loans | 0 | 0 | 82 | ||
Interest included in income | |||||
Total interest included in income | 0 | 1 | 0 | 2 | |
Construction real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 25 | 1,075 | 26 | 538 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 1 | 0 | 2 | 0 | |
Nonaccrual loans | 24 | 24 | 29 | ||
Total impaired loans | 24 | 24 | 29 | ||
Interest included in income | |||||
Total interest included in income | 1 | 0 | 2 | 0 | |
Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 27,874 | 26,123 | 25,763 | 24,313 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 3 | 8 | 6 | 13 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 140 | 144 | 239 | 304 | |
Nonaccrual loans | 21,593 | 21,593 | 10,616 | ||
Total impaired loans | 31,011 | 31,011 | 21,542 | ||
Interest included in income | |||||
Total interest included in income | 143 | 152 | 245 | 317 | |
Residential real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 10,215 | 8,731 | 9,454 | 9,217 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 7 | 6 | 14 | 13 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 76 | 46 | 123 | 92 | |
Nonaccrual loans | 9,278 | 9,278 | 4,140 | ||
Total impaired loans | 13,255 | 13,255 | 7,932 | ||
Interest included in income | |||||
Total interest included in income | 83 | 52 | 137 | 105 | |
Home equity | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 5,323 | 4,027 | 5,033 | 4,212 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1 | 1 | 2 | 2 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 27 | 27 | 47 | 51 | |
Nonaccrual loans | 5,820 | 5,820 | 3,743 | ||
Total impaired loans | 6,472 | 6,472 | 4,456 | ||
Interest included in income | |||||
Total interest included in income | 28 | 28 | 49 | 53 | |
Installment | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 305 | 357 | 288 | 413 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 1 | 1 | 1 | 3 | |
Nonaccrual loans | 299 | 299 | 243 | ||
Total impaired loans | 304 | 304 | 255 | ||
Interest included in income | |||||
Total interest included in income | 1 | 1 | 1 | 3 | |
Loans with no related allowance recorded [member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 51,955 | 55,724 | 47,029 | 48,789 | |
Total impaired loans | 60,427 | 60,427 | 37,183 | ||
Loans with no related allowance recorded [member] | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 9,714 | 17,198 | 8,863 | 15,607 | |
Total impaired loans | 10,856 | 10,856 | 7,162 | ||
Loans with no related allowance recorded [member] | Lease financing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 0 | 98 | 27 | 149 | |
Total impaired loans | 0 | 0 | 82 | ||
Loans with no related allowance recorded [member] | Construction real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 25 | 1,075 | 26 | 538 | |
Total impaired loans | 24 | 24 | 29 | ||
Loans with no related allowance recorded [member] | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 27,516 | 25,465 | 24,485 | 19,939 | |
Total impaired loans | 30,655 | 30,655 | 18,423 | ||
Loans with no related allowance recorded [member] | Residential real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 9,173 | 7,605 | 8,407 | 8,032 | |
Total impaired loans | 12,216 | 12,216 | 6,876 | ||
Loans with no related allowance recorded [member] | Home equity | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 5,222 | 3,926 | 4,933 | 4,111 | |
Total impaired loans | 6,372 | 6,372 | 4,356 | ||
Loans with no related allowance recorded [member] | Installment | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 305 | 357 | 288 | 413 | |
Total impaired loans | 304 | 304 | 255 | ||
Impaired Financing Receivables With Related Allowance [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Total impaired loans | 1,874 | 1,874 | |||
Impaired Financing Receivables With Related Allowance [Member] | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 309 | 2,301 | 262 | 1,094 | |
Total impaired loans | 379 | 379 | 169 | ||
Impaired Financing Receivables With Related Allowance [Member] | Lease financing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 0 | 0 | 0 | 0 | |
Total impaired loans | 0 | 0 | 0 | ||
Impaired Financing Receivables With Related Allowance [Member] | Construction real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 0 | 0 | 0 | 0 | |
Total impaired loans | 0 | 0 | 0 | ||
Impaired Financing Receivables With Related Allowance [Member] | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 358 | 658 | 1,278 | 4,374 | |
Total impaired loans | 356 | 356 | 3,119 | ||
Impaired Financing Receivables With Related Allowance [Member] | Residential real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 1,042 | 1,126 | 1,047 | 1,185 | |
Total impaired loans | 1,039 | 1,039 | 1,056 | ||
Impaired Financing Receivables With Related Allowance [Member] | Home equity | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 101 | 101 | 100 | 101 | |
Total impaired loans | 100 | 100 | 100 | ||
Impaired Financing Receivables With Related Allowance [Member] | Installment | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | 0 | 0 | 0 | 0 | |
Total impaired loans | 0 | 0 | 0 | ||
Impaired Financing Receivables With Related Allowance [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Average current balance | $ 1,810 | $ 4,186 | $ 2,687 | $ 6,754 | |
Total impaired loans | $ 4,444 |
LOANS AND LEASES - Investment i
LOANS AND LEASES - Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 40,462 | $ 40,462 | $ 24,082 | ||
Current balance | 62,301 | 62,301 | 41,627 | ||
Contractual Principal Balance | 75,296 | 75,296 | 47,857 | ||
Related Allowance | 366 | 366 | 779 | ||
Average current balance | 53,765 | $ 59,910 | 49,716 | $ 55,543 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 17 | 26 | 28 | 52 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 318 | 306 | 511 | 648 | |
Interest income recognized | 335 | 332 | 539 | 700 | |
Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 3,448 | 3,448 | 5,229 | ||
Current balance | 11,235 | 11,235 | 7,331 | ||
Contractual Principal Balance | 15,026 | 15,026 | 8,629 | ||
Related Allowance | 179 | 179 | 169 | ||
Average current balance | 10,023 | 19,499 | 9,125 | 16,701 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 6 | 11 | 6 | 24 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 73 | 87 | 99 | 196 | |
Interest income recognized | 79 | 98 | 105 | 220 | |
Lease financing | |||||
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 | 82 | ||
Current balance | 0 | 0 | 82 | ||
Contractual Principal Balance | 0 | 0 | 82 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 0 | 98 | 27 | 149 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 1 | 0 | 2 | |
Interest income recognized | 0 | 1 | 0 | 2 | |
Construction real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 24 | 24 | 29 | ||
Current balance | 24 | 24 | 29 | ||
Contractual Principal Balance | 57 | 57 | 60 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 25 | 1,075 | 26 | 538 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 1 | 0 | 2 | 0 | |
Interest income recognized | 1 | 0 | 2 | 0 | |
Commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 21,593 | 21,593 | 10,616 | ||
Current balance | 31,011 | 31,011 | 21,542 | ||
Contractual Principal Balance | 36,777 | 36,777 | 23,957 | ||
Related Allowance | 25 | 25 | 448 | ||
Average current balance | 27,874 | 26,123 | 25,763 | 24,313 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 3 | 8 | 6 | 13 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 140 | 144 | 239 | 304 | |
Interest income recognized | 143 | 152 | 245 | 317 | |
Residential real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 9,278 | 9,278 | 4,140 | ||
Current balance | 13,255 | 13,255 | 7,932 | ||
Contractual Principal Balance | 15,422 | 15,422 | 9,208 | ||
Related Allowance | 160 | 160 | 160 | ||
Average current balance | 10,215 | 8,731 | 9,454 | 9,217 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 7 | 6 | 14 | 13 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 76 | 46 | 123 | 92 | |
Interest income recognized | 83 | 52 | 137 | 105 | |
Home equity | |||||
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 5,820 | 5,820 | 3,743 | ||
Current balance | 6,472 | 6,472 | 4,456 | ||
Contractual Principal Balance | 7,411 | 7,411 | 5,499 | ||
Related Allowance | 2 | 2 | 2 | ||
Average current balance | 5,323 | 4,027 | 5,033 | 4,212 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1 | 1 | 2 | 2 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 27 | 27 | 47 | 51 | |
Interest income recognized | 28 | 28 | 49 | 53 | |
Installment | |||||
Financing Receivable, Impaired [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 299 | 299 | 243 | ||
Current balance | 304 | 304 | 255 | ||
Contractual Principal Balance | 603 | 603 | 422 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 305 | 357 | 288 | 413 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 1 | 1 | 1 | 3 | |
Interest income recognized | 1 | 1 | 1 | 3 | |
Loans with no related allowance recorded [member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 60,427 | 60,427 | 37,183 | ||
Contractual Principal Balance | 73,422 | 73,422 | 43,405 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 51,955 | 55,724 | 47,029 | 48,789 | |
Loans with no related allowance recorded [member] | Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 10,856 | 10,856 | 7,162 | ||
Contractual Principal Balance | 14,647 | 14,647 | 8,460 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 9,714 | 17,198 | 8,863 | 15,607 | |
Loans with no related allowance recorded [member] | Lease financing | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 0 | 0 | 82 | ||
Contractual Principal Balance | 0 | 0 | 82 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 0 | 98 | 27 | 149 | |
Loans with no related allowance recorded [member] | Construction real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 24 | 24 | 29 | ||
Contractual Principal Balance | 57 | 57 | 60 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 25 | 1,075 | 26 | 538 | |
Loans with no related allowance recorded [member] | Commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 30,655 | 30,655 | 18,423 | ||
Contractual Principal Balance | 36,421 | 36,421 | 20,837 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 27,516 | 25,465 | 24,485 | 19,939 | |
Loans with no related allowance recorded [member] | Residential real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 12,216 | 12,216 | 6,876 | ||
Contractual Principal Balance | 14,383 | 14,383 | 8,145 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 9,173 | 7,605 | 8,407 | 8,032 | |
Loans with no related allowance recorded [member] | Home equity | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 6,372 | 6,372 | 4,356 | ||
Contractual Principal Balance | 7,311 | 7,311 | 5,399 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 5,222 | 3,926 | 4,933 | 4,111 | |
Loans with no related allowance recorded [member] | Installment | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 304 | 304 | 255 | ||
Contractual Principal Balance | 603 | 603 | 422 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 305 | 357 | 288 | 413 | |
Impaired Financing Receivables With Related Allowance [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 1,874 | 1,874 | |||
Contractual Principal Balance | 1,874 | 1,874 | |||
Related Allowance | 366 | 366 | |||
Impaired Financing Receivables With Related Allowance [Member] | Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 379 | 379 | 169 | ||
Contractual Principal Balance | 379 | 379 | 169 | ||
Related Allowance | 179 | 179 | 169 | ||
Average current balance | 309 | 2,301 | 262 | 1,094 | |
Impaired Financing Receivables With Related Allowance [Member] | Lease financing | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 0 | 0 | 0 | ||
Contractual Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 0 | 0 | 0 | 0 | |
Impaired Financing Receivables With Related Allowance [Member] | Construction real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 0 | 0 | 0 | ||
Contractual Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 0 | 0 | 0 | 0 | |
Impaired Financing Receivables With Related Allowance [Member] | Commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 356 | 356 | 3,119 | ||
Contractual Principal Balance | 356 | 356 | 3,120 | ||
Related Allowance | 25 | 25 | 448 | ||
Average current balance | 358 | 658 | 1,278 | 4,374 | |
Impaired Financing Receivables With Related Allowance [Member] | Residential real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 1,039 | 1,039 | 1,056 | ||
Contractual Principal Balance | 1,039 | 1,039 | 1,063 | ||
Related Allowance | 160 | 160 | 160 | ||
Average current balance | 1,042 | 1,126 | 1,047 | 1,185 | |
Impaired Financing Receivables With Related Allowance [Member] | Home equity | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 100 | 100 | 100 | ||
Contractual Principal Balance | 100 | 100 | 100 | ||
Related Allowance | 2 | 2 | 2 | ||
Average current balance | 101 | 101 | 100 | 101 | |
Impaired Financing Receivables With Related Allowance [Member] | Installment | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 0 | 0 | 0 | ||
Contractual Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average current balance | 0 | 0 | 0 | 0 | |
Impaired Financing Receivables With Related Allowance [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Current balance | 4,444 | ||||
Contractual Principal Balance | 4,452 | ||||
Related Allowance | $ 779 | ||||
Average current balance | $ 1,810 | $ 4,186 | $ 2,687 | $ 6,754 |
LOANS AND LEASES - Changes in O
LOANS AND LEASES - Changes in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at beginning of period | $ 1,065 | $ 5,300 | $ 2,781 | $ 6,284 |
Additions | 1,545 | 1,963 | 2,174 | 2,250 |
Disposals | (618) | (1,130) | (2,840) | (2,292) |
Write-downs | 139 | 172 | 262 | 281 |
Balance at end of period | 1,853 | 5,961 | 1,853 | 5,961 |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Additions | 1,020 | 50 | 1,190 | 172 |
Disposals | (326) | (682) | (2,430) | (1,607) |
Write-downs | 0 | 116 | 97 | 162 |
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Additions | 525 | 1,913 | 984 | 2,078 |
Disposals | (292) | (448) | (410) | (685) |
Write-downs | $ 139 | $ 56 | $ 165 | $ 119 |
ALLOWANCE FOR LOAN AND LEASE 49
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in the Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | $ 54,380 | $ 56,326 | $ 54,021 | $ 57,961 | ||
Provision for loan and lease losses | 3,735 | 467 | 6,038 | 834 | ||
Loans charged-off | (5,822) | (4,498) | (9,491) | (7,248) | ||
Recoveries | 1,783 | 2,578 | 3,508 | 3,326 | ||
Total net charge-offs | 4,039 | 1,920 | 5,983 | 3,922 | ||
Balance at end of period | 54,076 | 54,873 | 54,076 | 54,873 | ||
Ending allowance on loans individually evaluated for impairment | $ 366 | $ 779 | ||||
Ending allowance on loans collectively evaluated for impairment | 53,710 | 53,242 | ||||
Ending allowance for loan and lease losses | 54,380 | 56,326 | 54,021 | 54,873 | 54,076 | 54,021 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 62,301 | 41,627 | ||||
Ending balance of loans collectively evaluated for impairment | 8,822,280 | 5,971,556 | ||||
Loans and Leases Receivable, Net of Deferred Income | 8,884,581 | 6,013,183 | ||||
Commercial | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 18,038 | 17,148 | 17,598 | 19,225 | ||
Provision for loan and lease losses | 3,328 | 3,537 | 4,217 | 2,941 | ||
Loans charged-off | (4,356) | (3,065) | (5,241) | (4,808) | ||
Recoveries | 518 | 693 | 954 | 955 | ||
Total net charge-offs | 3,838 | 2,372 | 4,287 | 3,853 | ||
Balance at end of period | 17,528 | 18,313 | 17,528 | 18,313 | ||
Ending allowance on loans individually evaluated for impairment | 179 | 169 | ||||
Ending allowance on loans collectively evaluated for impairment | 17,349 | 17,429 | ||||
Ending allowance for loan and lease losses | 18,038 | 17,148 | 17,528 | 19,225 | 17,528 | 17,598 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 11,235 | 7,331 | ||||
Ending balance of loans collectively evaluated for impairment | 2,429,361 | 1,905,412 | ||||
Loans and Leases Receivable, Net of Deferred Income | 2,440,596 | 1,912,743 | ||||
Lease financing | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 626 | 616 | 675 | 716 | ||
Provision for loan and lease losses | 170 | (67) | 121 | (167) | ||
Loans charged-off | 0 | 0 | 0 | 0 | ||
Recoveries | 1 | 1 | 1 | 1 | ||
Total net charge-offs | (1) | (1) | (1) | (1) | ||
Balance at end of period | 797 | 550 | 797 | 550 | ||
Ending allowance on loans individually evaluated for impairment | 0 | 0 | ||||
Ending allowance on loans collectively evaluated for impairment | 797 | 675 | ||||
Ending allowance for loan and lease losses | 626 | 616 | 797 | 716 | 797 | 675 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 0 | 82 | ||||
Ending balance of loans collectively evaluated for impairment | 96,198 | 89,265 | ||||
Loans and Leases Receivable, Net of Deferred Income | 96,198 | 89,347 | ||||
Construction real estate | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 4,267 | 3,607 | 3,577 | 3,282 | ||
Provision for loan and lease losses | (282) | (280) | 408 | 45 | ||
Loans charged-off | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 89 | 0 | 89 | ||
Total net charge-offs | 0 | (89) | 0 | (89) | ||
Balance at end of period | 3,985 | 3,416 | 3,985 | 3,416 | ||
Ending allowance on loans individually evaluated for impairment | 0 | 0 | ||||
Ending allowance on loans collectively evaluated for impairment | 3,985 | 3,577 | ||||
Ending allowance for loan and lease losses | 4,267 | 3,607 | 3,985 | 3,416 | 3,985 | 3,577 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 24 | 29 | ||||
Ending balance of loans collectively evaluated for impairment | 555,444 | 467,701 | ||||
Loans and Leases Receivable, Net of Deferred Income | 555,468 | 467,730 | ||||
Commercial real estate | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 20,321 | 23,745 | 20,930 | 26,540 | ||
Provision for loan and lease losses | (619) | (2,941) | 196 | (5,507) | ||
Loans charged-off | (78) | (485) | (2,254) | (970) | ||
Recoveries | 887 | 1,398 | 1,639 | 1,654 | ||
Total net charge-offs | (809) | (913) | 615 | (684) | ||
Balance at end of period | 20,511 | 21,717 | 20,511 | 21,717 | ||
Ending allowance on loans individually evaluated for impairment | 25 | 448 | ||||
Ending allowance on loans collectively evaluated for impairment | 20,486 | 20,482 | ||||
Ending allowance for loan and lease losses | 20,321 | 23,745 | 20,511 | 21,717 | 20,511 | 20,930 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 31,011 | 21,542 | ||||
Ending balance of loans collectively evaluated for impairment | 3,857,982 | 2,468,549 | ||||
Loans and Leases Receivable, Net of Deferred Income | 3,888,993 | 2,490,091 | ||||
Residential real estate | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 4,727 | 5,485 | 4,683 | 3,208 | ||
Provision for loan and lease losses | (28) | (305) | 86 | 2,024 | ||
Loans charged-off | (101) | (223) | (197) | (284) | ||
Recoveries | 70 | 59 | 96 | 68 | ||
Total net charge-offs | 31 | 164 | 101 | 216 | ||
Balance at end of period | 4,668 | 5,016 | 4,668 | 5,016 | ||
Ending allowance on loans individually evaluated for impairment | 160 | 160 | ||||
Ending allowance on loans collectively evaluated for impairment | 4,508 | 4,523 | ||||
Ending allowance for loan and lease losses | 4,727 | 5,485 | 4,668 | 5,016 | 4,668 | 4,683 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 13,255 | 7,932 | ||||
Ending balance of loans collectively evaluated for impairment | 905,649 | 463,459 | ||||
Loans and Leases Receivable, Net of Deferred Income | 918,904 | 471,391 | ||||
Home equity | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 4,828 | 3,774 | 4,935 | 3,043 | ||
Provision for loan and lease losses | 171 | 526 | (123) | 1,331 | ||
Loans charged-off | (385) | (384) | (627) | (564) | ||
Recoveries | 187 | 222 | 616 | 328 | ||
Total net charge-offs | 198 | 162 | 11 | 236 | ||
Balance at end of period | 4,801 | 4,138 | 4,801 | 4,138 | ||
Ending allowance on loans individually evaluated for impairment | 2 | 2 | ||||
Ending allowance on loans collectively evaluated for impairment | 4,799 | 4,933 | ||||
Ending allowance for loan and lease losses | 4,828 | 3,774 | 4,935 | 3,043 | 4,801 | 4,935 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 6,472 | 4,456 | ||||
Ending balance of loans collectively evaluated for impairment | 828,559 | 489,148 | ||||
Loans and Leases Receivable, Net of Deferred Income | 835,031 | 493,604 | ||||
Installment | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 290 | 419 | 307 | 388 | ||
Provision for loan and lease losses | 136 | 19 | 87 | 28 | ||
Loans charged-off | (218) | (126) | (234) | (175) | ||
Recoveries | 82 | 43 | 130 | 114 | ||
Total net charge-offs | 136 | 83 | 104 | 61 | ||
Balance at end of period | 290 | 355 | 290 | 355 | ||
Ending allowance on loans individually evaluated for impairment | 0 | 0 | ||||
Ending allowance on loans collectively evaluated for impairment | 290 | 307 | ||||
Ending allowance for loan and lease losses | 290 | 419 | 290 | 355 | 290 | 307 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 304 | 255 | ||||
Ending balance of loans collectively evaluated for impairment | 100,422 | 41,331 | ||||
Loans and Leases Receivable, Net of Deferred Income | 100,726 | 41,586 | ||||
Credit card | ||||||
Allowance for loan and lease losses: | ||||||
Balance at beginning of period | 1,283 | 1,532 | 1,316 | 1,559 | ||
Provision for loan and lease losses | 859 | (22) | 1,046 | 139 | ||
Loans charged-off | (684) | (215) | (938) | (447) | ||
Recoveries | 38 | 73 | 72 | 117 | ||
Total net charge-offs | 646 | 142 | (866) | (330) | ||
Balance at end of period | 1,496 | 1,368 | 1,496 | 1,368 | ||
Ending allowance on loans individually evaluated for impairment | 0 | 0 | ||||
Ending allowance on loans collectively evaluated for impairment | 1,496 | 1,316 | ||||
Ending allowance for loan and lease losses | $ 1,283 | $ 1,532 | $ 1,496 | $ 1,368 | 1,496 | 1,316 |
Loans and Leases: | ||||||
Ending balance of loans individually evaluated for impairment | 0 | 0 | ||||
Ending balance of loans collectively evaluated for impairment | 48,665 | 46,691 | ||||
Loans and Leases Receivable, Net of Deferred Income | $ 48,665 | $ 46,691 |
GOODWILL AND OTHER INTANGIBLE50
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS--Schedule of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 204,084 | $ 204,084 | $ 204,084 |
Goodwill | 678,941 | $ 0 | 0 |
Balance at end of period | $ 883,025 | $ 204,084 |
GOODWILL AND OTHER INTANGIBLE51
GOODWILL AND OTHER INTANGIBLE ASSETS--Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 883,025 | $ 883,025 | $ 204,084 | $ 204,084 | ||
Intangible Assets, Net (Excluding Goodwill) | 51,600 | 51,600 | 5,300 | |||
Finite-Lived Core Deposits, Gross | 42,500 | 42,500 | $ 3,300 | |||
Finite-Lived Intangible Assets, Amortization Expense | $ 2,400 | $ 300 | $ 2,600 | $ 700 | ||
Core Deposits [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets amortization method | accelerated basis | |||||
Estimated weighted average life (in years) | 9 years 3 months 18 days |
BORROWINGS Borrowings - - Addit
BORROWINGS Borrowings - - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Federal Home Loan Bank short-term borrowings | $ 1,100,233 | $ 742,300 |
Line of Credit Facility, Maximum Borrowing Capacity | 15,000 | |
Commitments outstanding to extend credit | 0 | 0 |
Short-term Debt | 1,188,303 | 814,565 |
Long-term Debt | 469,423 | 119,654 |
Subordinated debt | $ 120,000 | |
Subordinated Borrowing, Interest Rate | 5.125% | |
Subordinated debt | $ 177,887 | 120,000 |
Advances from Federal Home Loan Banks | $ 299,580 | $ 241 |
Federal Home Loan Bank | 1.90% | 1.09% |
Subordinated Debt [Member] | ||
Subordinated debt | $ 49,500 | |
Short-term Debt [Member] | ||
Short-term Debt | $ 8,300 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.19% | |
Private Placement [Member] | ||
Subordinated debt | $ 8,400 | |
Debt Instrument, Interest Rate, Effective Percentage | 6.95% | |
Subordinated Debt [Member] | ||
Debt Instrument Maturity Period | 30 years | |
DebtInstrumentMinimumCallablePeriod | 5 years |
BORROWINGS - Schedule of Long-t
BORROWINGS - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amount | ||
Subordinated debt | $ 177,887 | $ 120,000 |
FHLB long-term advances | 299,580 | 241 |
Capital loan with municipality | 775 | 775 |
Total long-term debt | $ 469,423 | $ 119,654 |
Average Rate [Abstract] | ||
Debt, Weighted Average Interest Rate | 5.13% | 5.13% |
Federal Home Loan Bank | 1.90% | 1.09% |
Weighted average rate on other long-term debt | 0.00% | 0.00% |
Total long-term debt | 3.16% | 5.14% |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (8,819) | $ (1,362) |
ACCUMULATED OTHER COMPREHENSI54
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Other Comprehensive Income (Loss), before Reclassification Adjustments and Tax [Abstract] | ||||||||
Unrealized gain (loss) on investment securities | $ (11,456) | $ 7,170 | $ (23,992) | $ 10,002 | ||||
Unrealized gain (loss) on derivatives | 203 | 202 | 405 | 405 | ||||
Retirement obligation | 0 | 0 | 0 | 0 | ||||
Total | (11,253) | 7,372 | (23,587) | 10,407 | ||||
Other Comprehensive Income (Loss) Reclassifications before Tax [Abstract] | ||||||||
Unrealized gain (loss) on investment securities | (30) | 838 | (30) | 1,354 | ||||
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | ||||
Retirement obligation | (452) | (335) | (871) | (670) | ||||
Total | (482) | 503 | (901) | 684 | ||||
Transactions Pre-tax | ||||||||
Unrealized gain (loss) on investment securities | (11,426) | 6,332 | (23,962) | 8,648 | ||||
Unrealized gain (loss) on derivatives | 203 | 202 | 405 | 405 | ||||
Unfunded pension obligation | 452 | 335 | 871 | 670 | ||||
Total | (10,771) | 6,869 | (22,686) | 9,723 | ||||
Transactions Tax-effect | ||||||||
Unrealized gain (loss) on investment securities | 2,448 | (2,256) | 5,154 | (3,085) | ||||
Unrealized gain (loss) on derivatives | (44) | (74) | (90) | (149) | ||||
Retirement obligation | 42 | (122) | (54) | (268) | ||||
Total | 2,446 | (2,452) | 5,010 | (3,502) | ||||
Transactions Net of tax | ||||||||
Unrealized gain (loss) on investment securities | (8,978) | 4,076 | (18,808) | 5,563 | ||||
Unrealized gain (loss) on derivatives | 159 | 128 | 315 | 256 | ||||
Retirement obligation | 494 | 213 | 817 | 402 | ||||
Total | (8,325) | 4,417 | (17,676) | 6,221 | ||||
Stranded Tax Effects | ||||||||
Unrealized gain (loss) on investment securities | (39) | |||||||
Unrealized gain (loss) on Derivatives | (124) | |||||||
Retirement obligation | (4,779) | |||||||
Total | (4,942) | |||||||
Balances Net of tax | ||||||||
Unrealized gain (loss) on investment securities | (19,029) | 1,014 | (19,029) | 1,014 | $ (10,051) | $ (182) | $ (3,062) | $ (4,549) |
Unrealized gain (loss) on cash flow hedges | (386) | (835) | (386) | (835) | (545) | (577) | (963) | (1,091) |
Retirement obligation | (23,593) | (22,401) | (23,593) | (22,401) | (24,087) | (19,631) | (22,614) | (22,803) |
Total | $ (43,008) | $ (22,222) | (43,008) | (22,222) | $ (34,683) | $ (20,390) | $ (26,639) | $ (28,443) |
Accumulated other comprehensive income (loss) | ||||||||
Transactions Net of tax | ||||||||
Total | $ (17,676) | $ 6,221 |
ACCUMULATED OTHER COMPREHENSI55
ACCUMULATED OTHER COMPREHENSIVE INCOME AMOUNT RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Accumulated Comprehensive income reclassified from AOCI [Line Items] | ||||
Net gain (loss) on sales of investment securities | $ (30) | $ 838 | $ (30) | $ 1,354 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 103 | 104 | 206 | 207 |
Defined Benefit Plan, Amortization of Gain (Loss) | (555) | (439) | (1,077) | (877) |
Other Comprehensive Income, Reclassification, Amortization of Defined Benefit Plans items, Pre-tax | (452) | (335) | (871) | (670) |
Total | $ (482) | $ 503 | $ (901) | $ 684 |
DERIVATIVES - Additional Inform
DERIVATIVES - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)entity | Dec. 31, 2017USD ($)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 | |
Inerest-bearing deposit liability | $ 2,358,312 | $ 1,674,080 |
Number of counterparties | entity | 14 | 13 |
Derivative Asset | $ 27,567 | $ 12,682 |
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | 27,565 | 12,687 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 37,200 | 12,300 |
Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 35,600 | 15,400 |
Credit Risk Derivative Liabilities, at Fair Value | 100 | |
Credit Risk Contract [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 146,300 | 95,900 |
Credit Risk Derivative Liabilities, at Fair Value | 100 | 54 |
Accrued interest and other liabilities | Derivative [Member] | ||
Derivative [Line Items] | ||
Inerest-bearing deposit liability | 1,200,000 | 837,500 |
Derivative Asset | $ (21,800) | |
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | $ 1,300 |
DERIVATIVES - Summary of Deriva
DERIVATIVES - Summary of Derivative Financial Instruments and Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | $ 2,358,312 | $ 1,674,080 |
Derivative Asset | 27,567 | 12,682 |
Estimate Fair Value Loss | (27,565) | (12,687) |
Other Credit Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | 35,600 | 15,400 |
Credit Risk Derivative Liabilities, at Fair Value | 100 | |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | 1,179,156 | 837,040 |
Derivative Asset | 24,306 | 5,529 |
Estimate Fair Value Loss | (3,259) | (7,158) |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Inerest-bearing deposit liability | 1,179,156 | 837,040 |
Derivative Asset | 3,261 | 7,153 |
Estimate Fair Value Loss | $ (24,306) | $ (5,529) |
DERIVATIVES DERIVATIVES - Discl
DERIVATIVES DERIVATIVES - Disclosure by Type of Financial Instrument (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Credit Risk Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Credit Risk Derivative Liabilities, at Fair Value | $ 100 | $ 54 |
Fair Value Hedges | Matched interest rate swaps | Accrued interest and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized liabilities | 27,567 | 12,687 |
Derivative Liability, Fair Value, Gross Asset | (7,152) | 2,279 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 20,415 | $ 14,966 |
DERIVATIVES - Derivative Financ
DERIVATIVES - Derivative Financial Instruments, Average Remaining Maturity and the Weighted-Average Interest Rates being Paid and Received (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Notional Value | $ 2,358,312 | $ 1,674,080 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Value | $ 2,358,312 | |
Average Maturity (years) | 4 years 9 months 18 days | |
Fair Value | $ 2 | |
Weighted-Average Rate Receive | 4.37% | |
Weighted-Average Rate Pay | 4.37% | |
Interest Rate Swap | Derivative Financial Instruments Receive Fixed Pay Variable | ||
Derivative [Line Items] | ||
Notional Value | $ 1,179,156 | |
Average Maturity (years) | 4 years 9 months 18 days | |
Fair Value | $ (21,045) | |
Weighted-Average Rate Receive | 4.50% | |
Weighted-Average Rate Pay | 4.25% | |
Interest Rate Swap | Derivative Financial Instruments Receive Variable Pay Fixed | ||
Derivative [Line Items] | ||
Notional Value | $ 1,179,156 | |
Average Maturity (years) | 4 years 9 months 18 days | |
Fair Value | $ 21,047 | |
Weighted-Average Rate Receive | 4.25% | |
Weighted-Average Rate Pay | 4.50% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Reserves for unfunded commitments | $ 1,100 | $ 1,100 | $ 500 | ||
Commitments outstanding to extend credit | 0 | 0 | 0 | ||
Letters of credit issued to guarantee performance of a client to a third party | 35,600 | 35,600 | 25,300 | ||
Affordable Housing Program Obligation | 34,300 | 34,300 | 35,900 | ||
Affordable housing contingent commitment | 0 | 0 | 0 | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 2,900 | 2,900 | 3,000 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 2,900 | 2,900 | 3,000 | ||
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 1,600 | $ 1,200 | 2,800 | $ 2,200 | |
Estimated Litigation Liability | 0 | 0 | 0 | ||
Loans and Leases Receivable, Commitments, Fixed Rates | 215,800 | 44,300 | |||
Loans and Leases Receivable, Commitments, Variable Rates | $ 2,600,000 | 2,000,000 | |||
Loan Commitments, Fixed Interest Rate Range, Minimum | 0.00% | ||||
Loan Commitments, Fixed Interest Rate Range, Maximum | 21.00% | ||||
Loan Commitments, Fixed Rate, Maturities, Minimum | 1 year | ||||
Loan Commitments, Fixed Rate, Maturities, Maximum | 30 years | ||||
Commitments to Extend Credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Commitments outstanding to extend credit | 2,900,000 | $ 2,900,000 | $ 2,100,000 | ||
Affordable housing investment [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Low-income housing tax credit | 1,200 | 800 | 2,300 | 1,600 | |
Historic tax credit [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Low-income housing tax credit | $ 100 | $ 100 | $ 200 | $ 300 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 9,327 | $ 11,215 | $ 16,980 | $ 21,685 | |
Effective tax rate | 20.40% | 33.00% | 20.20% | 31.50% | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 100 | $ 0 | $ 1,200 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 2,900 | $ 2,900 | $ 2,900 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 0 | $ 0 | |||
Payment for Pension Benefits | 0 | $ 0 | |||
Pension Cost (Reversal of Cost) | $ 338,000 | $ (318,000) | $ 182,000 | $ (637,000) |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS - Employee benefit plan amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 1,735 | $ 1,239 | $ 3,030 | $ 2,477 |
Interest cost | 601 | 589 | 1,191 | 1,178 |
Expected return on plan assets | (2,450) | (2,481) | (4,910) | (4,962) |
Amortization of prior service cost | (103) | (104) | (206) | (207) |
Defined Benefit Plan, Amortization of Gain (Loss) | 555 | 439 | 1,077 | 877 |
Net periodic benefit cost (income) | $ 338 | $ (318) | $ 182 | $ (637) |
REVENUE RECOGNITION REVENUE REC
REVENUE RECOGNITION REVENUE RECOGNITION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Revenue Recognition [Abstract] | ||
Fees and Commissions, Credit and Debit Cards | $ 8.1 | $ 13.5 |
Credit card expense | $ 2.8 | $ 4.8 |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator for basic and diluted earnings per share -income available to common shareholders: | ||||
Net income | $ 36,418 | $ 22,736 | $ 66,924 | $ 47,150 |
Denominator for basic earnings per share - weighted average shares | 97,347,533 | 61,543,478 | 79,599,709 | 61,471,347 |
Effect of dilutive securities - | ||||
Employee stock awards | 545,374 | 625,031 | 504,914 | 649,706 |
Warrants | 539,165 | 65,513 | 524,872 | 66,420 |
Denominator for diluted earnings per share - adjusted weighted average shares | 98,432,072 | 62,234,022 | 80,629,495 | 62,187,473 |
Basic | $ 0.37 | $ 0.37 | $ 0.84 | $ 0.77 |
Diluted | $ 0.37 | $ 0.37 | $ 0.83 | $ 0.76 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share Disclosure [Line Items] | ||
Investment Warrants, Exercise Price | $ 12.11 | |
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 | 22,698 | 112,233 |
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 | 0 | 0 |
MainSource [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Investment Warrants, Exercise Price | $ 10.72 | |
MainSource [Member] | 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 | 793,520 |
FAIR VALUE DISCLOSURES - Estima
FAIR VALUE DISCLOSURES - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Financial Instruments, Liabilities, Fair Value Disclosure | $ 27,565 | $ 12,687 |
Financial assets | ||
Investment securities held-to-maturity | 443,957 | 654,008 |
Other investments | 95,004 | 53,140 |
Deposits | ||
Noninterest-bearing | 2,471,932 | 1,662,058 |
Savings | 3,087,683 | 2,462,420 |
Time | 2,104,044 | 1,317,105 |
Carrying value | ||
Financial assets | ||
Cash and short-term investments | 254,582 | 184,624 |
Investment securities held-to-maturity | 443,957 | 654,008 |
Other investments | 95,004 | 53,140 |
Loans held for sale | 15,821 | 11,502 |
Loans and leases | 8,830,505 | 5,959,162 |
Interest Receivable | 40,152 | 24,496 |
Deposits | ||
Deposits | 10,103,747 | 6,895,046 |
Short-term borrowings | 1,188,303 | 814,565 |
Long-term debt | 469,423 | 119,654 |
Interest Payable | 9,550 | 5,104 |
Fair value | ||
Financial assets | ||
Cash and short-term investments | 254,582 | 184,624 |
Investment securities held-to-maturity | 435,785 | 653,101 |
Loans held for sale | 15,821 | 11,502 |
Loans and leases | 8,847,519 | 6,006,656 |
Interest Receivable | 40,152 | 24,496 |
Deposits | ||
Deposits | 10,073,140 | 6,884,615 |
Short-term borrowings | 1,188,303 | 814,565 |
Long-term debt | 462,478 | 117,908 |
Interest Payable | 9,550 | 5,104 |
Fair Value, Inputs, Level 1 [Member] | Fair value | ||
Financial assets | ||
Cash and short-term investments | 254,582 | 184,624 |
Investment securities held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans and leases | 0 | 0 |
Interest Receivable | 0 | 0 |
Deposits | ||
Deposits | 0 | 0 |
Short-term borrowings | 1,188,303 | 814,565 |
Long-term debt | 0 | 0 |
Interest Payable | 1,577 | 204 |
Fair Value, Inputs, Level 2 [Member] | Fair value | ||
Financial assets | ||
Cash and short-term investments | 0 | 0 |
Investment securities held-to-maturity | 435,785 | 653,101 |
Loans held for sale | 15,821 | 11,502 |
Loans and leases | 0 | 0 |
Interest Receivable | 13,939 | 8,265 |
Deposits | ||
Deposits | 10,073,140 | 6,884,615 |
Short-term borrowings | 0 | 0 |
Long-term debt | 462,478 | 117,908 |
Interest Payable | 7,973 | 4,900 |
Fair Value, Inputs, Level 3 [Member] | Fair value | ||
Financial assets | ||
Cash and short-term investments | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans and leases | 8,847,519 | 6,006,656 |
Interest Receivable | 26,213 | 16,231 |
Deposits | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Interest Payable | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Summar
FAIR VALUE DISCLOSURES - Summary of Financial Assets and Liabilities Measure at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Derivatives | $ 27,567 | $ 12,682 |
Investment securities available-for-sale | 2,654,909 | 1,349,408 |
Liabilities | ||
Derivatives | 27,565 | 12,687 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Derivatives | 28,113 | 12,757 |
Investment securities available-for-sale | 2,654,909 | 1,349,408 |
Total | 2,683,022 | 1,362,165 |
Liabilities | ||
Derivatives | 27,624 | 12,755 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities available-for-sale | 7,737 | 2,969 |
Total | 7,737 | 2,969 |
Liabilities | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | ||
Assets | ||
Derivatives | 28,113 | 12,757 |
Investment securities available-for-sale | 2,647,172 | 1,346,439 |
Total | 2,675,285 | 1,359,196 |
Liabilities | ||
Derivatives | 27,624 | 12,755 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivatives | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Summ69
FAIR VALUE DISCLOSURES - Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Measurements Using Level 1 | ||
Assets | ||
Impaired loans | $ 0 | $ 0 |
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 |
Fair Value Measurements Using Level 3 | ||
Assets | ||
Impaired loans | 531 | 2,671 |
Other Real Estate Owned, Fair Value Disclosure | $ 284 | $ 1,086 |
BUSINESS COMBINATION BUSINESS C
BUSINESS COMBINATION BUSINESS COMBINATION - Additional Information (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Business Acquisition, Number Of Shares Received by Acquiree | 1.3875 | |||
Business Combination, Consideration Transferred | $ 1,100,000 | $ 1,061,956 | ||
Goodwill | 678,941 | $ 0 | $ 0 | |
Payments for Merger Related Costs | $ 25,900 |
BUSINESS COMBINATION BUSINESS71
BUSINESS COMBINATION BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Cash consideration | $ 43 | |||
Stock consideration | 1,045,876 | |||
Warrant consideration | 14,460 | |||
Options consideration | 1,577 | |||
Total purchase consideration | $ 1,100,000 | 1,061,956 | ||
Cash | 71,681 | |||
Investment securities available for sale | 901,008 | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Held to Maturity Securities | 171,423 | |||
Other investments | 28,763 | |||
Loans | 2,791,954 | |||
Premises and equipment | 99,098 | |||
Other real estate owned | 1,361 | |||
Intangible assets | 41,750 | |||
Other assets | 155,945 | |||
Assets held for sale | 127,775 | |||
Total assets acquired | 4,390,758 | |||
Deposits | 3,264,038 | |||
Subordinated notes | 49,027 | |||
FHLB advances | 291,887 | |||
Other borrowings | 205,620 | |||
Other liabilities | 21,449 | |||
Liabilities held for sale | 175,722 | |||
Total liabilities assumed | 4,007,743 | $ 0 | ||
Net identifiable assets | 383,015 | |||
Goodwill | $ 678,941 | $ 0 | $ 0 |
BUSINESS COMBINATION Business A
BUSINESS COMBINATION Business Acquisition, Pro Forma Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Business Acquisition, Pro Forma Revenue | $ 242,130 | $ 219,984 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 106,556 | $ 58,755 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 1.09 | $ 0.61 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 1.08 | $ 0.60 |