FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of First Financial’s financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:

	Carrying		Estimated Fair Value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
September 30, 2013
Financial assets
Cash and short-term investments	$	188,112	$	188,112	$	188,112	$	0	$	0
Investment securities held-to-maturity	669,093		661,685		0		661,685		0
Other investments	75,945		75,945		0		75,945		0
Loans held for sale	10,704		10,704		0		10,704		0
Loans - excluding covered loans	3,385,402		3,379,595		0		0		3,379,595
Covered loans	495,265		504,781		0		0		504,781
FDIC indemnification asset	78,132		57,978		0		0		57,978
Financial liabilities
Deposits
Noninterest-bearing	$	1,141,016	$	1,141,016	$	0	$	1,141,016	$	0
Interest-bearing demand	1,068,067		1,068,067		0		1,068,067		0
Savings	1,593,895		1,593,895		0		1,593,895		0
Time	926,029		921,933		0		921,933		0
Total deposits	4,729,007		4,724,911		0		4,724,911		0
Short-term borrowings	623,672		623,672		623,672		0		0
Long-term debt	61,088		63,338		0		63,338		0

	Carrying		Estimated Fair Value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2012
Financial assets
Cash and short-term investments	$	158,843	$	158,843	$	158,843	$	0	$	0
Investment securities held-to-maturity	770,755		778,474		0		778,474		0
Other investments	71,492		71,492		0		71,492		0
Loans held for sale	16,256		16,256		0		16,256		0
Loans - excluding covered loans	3,131,287		3,145,120		0		0		3,145,120
Covered loans	702,926		713,797		0		0		713,797
FDIC indemnification asset	119,607		106,380		0		0		106,380
Financial liabilities
Deposits
Noninterest-bearing	$	1,102,774	$	1,102,774	$	0	$	1,102,774	$	0
Interest-bearing demand	1,160,815		1,160,815		0		1,160,815		0
Savings	1,623,614		1,623,614		0		1,623,614		0
Time	1,068,637		1,072,201		0		1,072,201		0
Total deposits	4,955,840		4,959,404		0		4,959,404		0
Short-term borrowings	624,570		624,570		624,570		0		0
Long-term debt	75,202		78,941		0		78,941		0

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows:

	Fair Value Measurements Using
(Dollars in thousands)	Level 1		Level 2		Level 3		Netting Adjustments (1)			Assets/Liabilities at Fair Value
September 30, 2013
Assets
Derivatives	$	0	$	14,848	$	0	$	(14,848	)	$	0
Available-for-sale investment securities	185		854,562		0		0			854,747
Total	$	185	$	869,410	$	0	$	(14,848	)	$	854,747
Liabilities
Derivatives	$	0	$	16,044	$	0	$	(14,848	)	$	1,196

	Fair Value Measurements Using
(Dollars in thousands)	Level 1		Level 2		Level 3		Netting Adjustments (1)			Assets/Liabilities at Fair Value
December 31, 2012
Assets
Derivatives	$	0	$	24,135	$	0	$	(24,135	)	$	0
Available-for-sale investment securities	144		1,031,952		0		0			1,032,096
Total	$	144	$	1,056,087	$	0	$	(24,135	)	$	1,032,096
Liabilities
Derivatives	$	0	$	26,652	$	0	$	(24,135	)	$	2,517

(1) Amounts represent the impact of legally enforceable master netting arrangements that allow First Financial to settle positive and negative positions and also cash collateral held with the same counterparties.

Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis.

	Fair Value Measurements Using
(Dollars in thousands)	Level 1		Level 2		Level 3
September 30, 2013
Assets
Impaired loans (1)	$	0	$	0	$	21,390
OREO	0		0		6,346
Covered OREO	0		0		7,722

	Fair Value Measurements Using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2012
Assets
Impaired loans (1)	$	0	$	0	$	19,564
OREO	0		0		5,651
Covered OREO	0		0		14,059

(1) Amounts represent the fair value of collateral for impaired loans allocated to the allowance for loan and lease losses.  Fair values are determined using actual market prices (Level 1), independent third party valuations and borrower records, discounted as appropriate (Level 3).