FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018
Financial assets
Cash and short-term investments	$	222,277	$	222,277	$	222,277	$	0	$	0
Investment securities held-to-maturity	434,369		422,638		0		422,638		0
Other investments	115,757		N/A		N/A		N/A		N/A
Loans held for sale	13,277		13,277		0		13,277		0
Loans and leases	8,789,661		8,737,769		0		0		8,737,769
Accrued interest receivable	41,755		41,755		0		13,674		28,081

Financial liabilities
Deposits	9,752,634		9,722,689		0		9,722,689		0
Short-term borrowings	1,294,252		1,294,252		1,294,252		0		0
Long-term debt	570,037		547,569		0		547,569		0
Accrued interest payable	10,517		10,517		2,963		7,554		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
September 30, 2018
Assets
Derivatives	$	0	$	33,806	$	0	$	33,806
Investment securities available-for-sale	95		2,626,631		0		2,626,726
Total	$	95	$	2,660,437	$	0	$	2,660,532

Liabilities
Derivatives	$	0	$	33,321	$	0	$	33,321



	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
September 30, 2018
Assets
Impaired loans	$	0	$	0	$	2,816
OREO	0		0		1,515



	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