FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017
Financial assets
Cash and short-term investments	$	156,972	$	156,972	$	156,972	$	0	$	0
Investment securities held-to-maturity	730,796		732,024		0		732,024		0
Other investments	50,996		N/A		N/A		N/A		N/A
Loans held for sale	7,657		7,657		0		7,657		0
Loans and leases, net of ALLL	5,697,756		5,724,790		0		0		5,724,790
FDIC indemnification asset	10,773		6,031		0		0		6,031
Accrued interest receivable	19,500		19,500		0		6,633		12,867

Financial liabilities
Deposits
Noninterest-bearing	$	1,547,600	$	1,547,600	$	0	$	1,547,600	$	0
Interest-bearing demand	1,494,892		1,494,892		0		1,494,892		0
Savings	2,284,821		2,284,821		0		2,284,821		0
Time	1,202,563		1,198,807		0		1,198,807		0
Total deposits	6,529,876		6,526,120		0		6,526,120		0
Short-term borrowings	859,184		859,184		859,184		0		0
Long-term debt	119,629		118,390		0		118,390		0
Accrued interest payable	3,625		3,625		680		2,945		0



	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2016
Financial assets
Cash and short-term investments	$	204,048	$	204,048	$	204,048	$	0	$	0
Investment securities held-to-maturity	763,254		763,575		0		763,575		0
Other investments	51,077		N/A		N/A		N/A		N/A
Loans held for sale	13,135		13,135		0		13,135		0
Loans and leases, net of ALLL	5,699,521		5,754,845		0		0		5,754,845
FDIC indemnification asset	12,017		6,720		0		0		6,720
Accrued interest receivable	18,503		18,503		0		5,705		12,798

Financial liabilities
Deposits
Noninterest-bearing	$	1,547,985	$	1,547,985	$	0	$	1,547,985	$	0
Interest-bearing demand	1,513,771		1,513,771		0		1,513,771		0
Savings	2,142,189		2,142,189		0		2,142,189		0
Time	1,321,843		1,316,333		0		1,316,333		0
Total deposits	6,525,788		6,520,278		0		6,520,278		0
Short-term borrowings	807,912		807,912		807,912		0		0
Long-term debt	119,589		117,878		0		117,878		0
Accrued interest payable	5,049		5,049		410		4,639		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, 2017
Assets
Derivatives	$	0	$	12,301	$	0	$	12,301
Investment securities available-for-sale	8,764		1,211,282		0		1,220,046
Total	$	8,764	$	1,223,583	$	0	$	1,232,347

Liabilities
Derivatives	$	0	$	12,111	$	0	$	12,111



	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2016
Assets
Derivatives	$	0	$	12,922	$	0	$	12,922
Investment securities available-for-sale	8,711		1,031,159		0		1,039,870
Total	$	8,711	$	1,044,081	$	0	$	1,052,792

Liabilities
Derivatives	$	0	$	12,725	$	0	$	12,725

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, 2017
Assets
Impaired loans	$	0	$	0	$	1,249
OREO	0		0		4,098



	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2016
Assets
Impaired loans	$	0	$	0	$	8,154
OREO	0		0		3,921