FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014
Financial assets
Cash and short-term investments	$	143,725	$	143,725	$	143,725	$	0	$	0
Investment securities held-to-maturity	900,521		901,659		0		901,659		0
Other investments	49,986		49,986		0		49,986		0
Loans held for sale	16,816		16,816		0		16,816		0
Loans - excluding covered loans	4,407,518		4,416,740		0		0		4,416,740
Covered loans	320,730		318,372		0		0		318,372
FDIC indemnification asset	24,160		12,482		0		0		12,482
Financial liabilities
Deposits
Noninterest-bearing	$	1,243,367	$	1,243,367	$	0	$	1,243,367	$	0
Interest-bearing demand	1,214,726		1,214,726		0		1,214,726		0
Savings	1,827,590		1,827,590		0		1,827,590		0
Time	1,247,334		1,244,218		0		1,244,218		0
Total deposits	5,533,017		5,529,901		0		5,529,901		0
Short-term borrowings	919,303		919,303		919,303		0		0
Long-term debt	52,656		54,385		0		54,385		0

	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2013
Financial assets
Cash and short-term investments	$	143,450	$	143,450	$	143,450	$	0	$	0
Investment securities held-to-maturity	837,272		824,985		0		824,985		0
Other investments	47,427		47,427		0		47,427		0
Loans held for sale	8,114		8,114		0		8,114		0
Loans - excluding covered loans	3,461,812		3,455,776		0		0		3,455,776
Covered loans	438,972		451,545		0		0		451,545
FDIC indemnification asset	45,091		34,820		0		0		34,820
Financial liabilities
Deposits
Noninterest-bearing	$	1,147,452	$	1,147,452	$	0	$	1,147,452	$	0
Interest-bearing demand	1,125,723		1,125,723		0		1,125,723		0
Savings	1,612,005		1,612,005		0		1,612,005		0
Time	952,327		951,220		0		951,220		0
Total deposits	4,837,507		4,836,400		0		4,836,400		0
Short-term borrowings	748,749		748,749		748,749		0		0
Long-term debt	60,780		62,706		0		62,706		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
September 30, 2014
Assets
Derivatives	$	0	$	10,126	$	0	$	10,126
Investment securities available-for-sale	8,258		921,336		0		929,594
Total	$	8,258	$	931,462	$	0	$	939,720
Liabilities
Derivatives	$	0	$	10,578	$	0	$	10,578

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2013
Assets
Derivatives	$	0	$	13,477	$	0	$	13,477
Investment securities available-for-sale	7,976		905,625		0		913,601
Total	$	7,976	$	919,102	$	0	$	927,078
Liabilities
Derivatives	$	0	$	14,431	$	0	$	14,431

(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, 2014
Assets
Impaired loans (1)	$	0	$	0	$	10,308
OREO	0		0		7,316
Covered OREO	0		0		6,605

	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2013
Assets
Impaired loans (1)	$	0	$	0	$	13,699
OREO	0		0		5,358
Covered OREO	0		0		8,937

(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), observable market data for similar assets and liabilities (Level 2), and independent third party valuations and borrower records, discounted as appropriate (Level 3).