FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2016

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
March 31, 2016
Financial assets
Cash and short-term investments	$	118,257	$	118,257	$	118,257	$	0	$	0
Investment securities held-to-maturity	702,315		718,277		0		718,277		0
Other investments	53,255		N/A		N/A		N/A		N/A
Loans held for sale	15,369		15,369		0		15,369		0
Loans and leases, net of ALLL	5,450,877		5,488,942		0		0		5,488,942
FDIC indemnification asset	16,256		9,077		0		0		9,077
Accrued interest receivable	18,959		18,959		0		6,001		12,958

Financial liabilities
Deposits
Noninterest-bearing	$	1,408,609	$	1,408,609	$	0	$	1,408,609	$	0
Interest-bearing demand	1,430,963		1,430,963		0		1,430,963		0
Savings	1,922,892		1,922,892		0		1,922,892		0
Time	1,414,313		1,418,613		0		1,418,613		0
Total deposits	6,176,777		6,181,077		0		6,181,077		0
Short-term borrowings	969,899		969,899		969,899		0		0
Long-term debt	119,556		123,034		0		123,034		0
Accrued interest payable	3,650		3,650		503		3,147		0



	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2015
Financial assets
Cash and short-term investments	$	148,575	$	148,575	$	148,575	$	0	$	0
Investment securities held-to-maturity	726,259		731,951		0		731,951		0
Other investments	53,725		N/A		N/A		N/A		N/A
Loans held for sale	20,957		20,957		0		20,957		0
Loans and leases, net of ALLL	5,335,362		5,381,065		0		0		5,381,065
FDIC indemnification asset	17,630		9,756		0		0		9,756
Accrued interest receivable	16,995		16,995		0		5,791		11,204

Financial liabilities
Deposits
Noninterest-bearing	$	1,413,404	$	1,413,404	$	0	$	1,413,404	$	0
Interest-bearing demand	1,414,291		1,414,291		0		1,414,291		0
Savings	1,945,805		1,945,805		0		1,945,805		0
Time	1,406,124		1,406,489		0		1,406,489		0
Total deposits	6,179,624		6,179,989		0		6,179,989		0
Short-term borrowings	938,425		938,425		938,425		0		0
Long-term debt	119,540		118,691		0		118,691		0
Accrued interest payable	5,003		5,003		113		4,890		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
March 31, 2016
Assets
Derivatives	$	0	$	25,028	$	0	$	25,028
Investment securities available-for-sale	8,789		1,155,530		0		1,164,319
Total	$	8,789	$	1,180,558	$	0	$	1,189,347

Liabilities
Derivatives	$	0	$	24,952	$	0	$	24,952



	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2015
Assets
Derivatives	$	0	$	14,111	$	0	$	14,111
Investment securities available-for-sale	8,583		1,182,059		0		1,190,642
Total	$	8,583	$	1,196,170	$	0	$	1,204,753

Liabilities
Derivatives	$	0	$	14,243	$	0	$	14,243

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
March 31, 2016
Assets
Loans held for sale	$	0	$	15,369	$	0
Impaired loans	0		0		8,784
OREO	0		0		7,051



	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2015
Assets
Loans held for sale	$	0	$	20,957	$	0
Impaired loans	0		0		8,008
OREO	0		0		7,598