BORROWINGS

3 Months Ended

Mar. 31, 2019

Short-term borrowings on the Consolidated Balance Sheets include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, overnight advances from the FHLB and a short-term line of credit. All repurchase agreements are subject to terms and conditions agreed to by the Bank and the client. To secure its liability to the client, the Bank is authorized to sell or repurchase U.S. Treasury, government agency and mortgage-backed securities.

The following shows the remaining contractual maturity of repurchase agreements by collateral pledged:



(Dollars in thousands)	Overnight and continuous
Repurchase agreements
Mortgage-backed securities	$	15,243
Collateralized mortgage obligations	79,772
Total	$	95,015

Securities sold under agreements to repurchase are secured by securities with a carrying amount of $95.5 million and $85.5 million, as of March 31, 2019 and December 31, 2018, respectively.

First Financial had $952.4 million in short-term borrowings with the FHLB of at March 31, 2019 and $857.1 million as of December 31, 2018. These short-term borrowings are used to manage normal liquidity needs and support the Company's asset and liability management strategies.

First Financial has a $30.0 million short-term credit facility with an unaffiliated bank that matures in September 2019. This facility can have a variable or fixed interest rate and provides First Financial additional liquidity, if needed, for various corporate activities including the repurchase of First Financial common stock and the payment of dividends to shareholders. As of March 31, 2019 and December 31, 2018, there was no outstanding balance. The credit agreement requires First Financial to comply with certain covenants including those related to asset quality and capital levels, and First Financial was in compliance with all covenants associated with this facility as of March 31, 2019 and December 31, 2018.

First Financial had $546.4 million and $570.7 million of long-term debt as of March 31, 2019 and December 31, 2018, respectively, which included subordinated notes, FHLB long term advances and an interest free loan with a municipality.

The following is a summary of First Financial's long-term debt:



	March 31, 2019					December 31, 2018
(Dollars in thousands)	Amount			Average rate		Amount			Average rate
Subordinated notes	$	170,654		5.21	%	$	170,550		5.28	%
Unamortized debt issuance costs	(1,140		)	N/A		(1,185		)	N/A
FHLB borrowings	376,134			2.14	%	400,599			2.08	%
Capital loan with municipality	775			0.00	%	775			0.00	%
Total long-term debt	$	546,423		3.10	%	$	570,739		3.04	%

In 2015, First Financial issued $120.0 million of subordinated notes, which have a fixed interest rate of 5.125% payable semiannually and mature in August 2025. These notes are not redeemable by the Company, or callable by the holders of the notes prior to maturity. In addition, First Financial acquired $49.5 million of variable rate subordinated notes in the MSFG merger that were issued to previously formed trusts in exchange for the trust proceeds. Interest on the acquired subordinated notes is payable quarterly, in arrears, and the Company has the option to defer interest payments for a period not to exceed 20 consecutive quarters. The acquired subordinated notes mature 30 years after the date of original issuance and may be called at par following the 5 year anniversary of issuance. First Financial also acquired $8.4 million of 7.40% fixed rate private placement subordinated debt in conjunction with the MSFG merger that was issued in 2015 and matures in 2025. These notes are redeemable by the Company at par following the 5 year anniversary of issuance. The subordinated notes are treated as Tier 2 capital for regulatory capital purposes and are included in Long-term debt on the Consolidated Balance Sheets.

In addition to subordinated notes, long-term debt included $376.1 million and $400.6 million of fixed rate FHLB long-term advances as of March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019, long-term FHLB advances had a weighted average interest rate of 2.14%. These instruments are primarily utilized to reduce overnight liquidity risk and to mitigate interest rate sensitivity on the Consolidated Balance Sheets.