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BORROWINGS
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
Short-term borrowings on the Consolidated Balance Sheets include repurchase agreements utilized for corporate sweep accounts with cash management account agreements in place, federal funds purchased, 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$50,075 
Collateralized mortgage obligations31,775 
Total$81,850 

Securities sold under agreements to repurchase were secured by securities with a carrying amount of $82.0 million and $126.7 million as of September 30, 2021 and December 31, 2020, respectively.

First Financial had no federal funds purchased at September 30, 2021 and $40.0 million as of December 31, 2020. The Company had $107.0 million in short-term borrowings with the FHLB at September 30, 2021 and none at December 31, 2020.
These short-term borrowings are used to manage normal liquidity needs and support the Company's asset and liability management strategies.

First Financial had $313.2 million and $776.2 million of long-term debt as of September 30, 2021 and December 31, 2020 respectively, which included FRB borrowings, subordinated notes, FHLB long term advances and an interest free loan with a municipality.

First Financial participated in the PPPLF, which is a program created by the FRB to extend credit to eligible financial institutions that originate PPP loans. As of September 30, 2021, the bank had no outstanding PPPLF advances. As of December 31, 2020, the bank had outstanding PPPLF advances of $435.0 million with an average interest rate of 35 basis points. These borrowings were secured by pledged PPP loans and prepaid in conjunction with reductions in the principal balances of those loans.

The following is a summary of First Financial's long-term debt:
 September 30, 2021December 31, 2020
(Dollars in thousands)AmountAverage rateAmountAverage rate
FRB borrowings$0 0.00 %$434,982 0.35 %
FHLB borrowings0 0.00 %19,971 1.43 %
Subordinated notes313,134 4.85 %321,384 4.86 %
Unamortized debt issuance costs(2,480)N/A(2,770)N/A
Lease liability1,801 3.81 %1,860 3.81 %
Capital loan with municipality775 0.00 %775 0.00 %
Total long-term debt$313,230 4.87 %$776,202 2.25 %

In April 2020, First Financial issued $150.0 million of fixed to floating rate subordinated notes. These subordinated notes have an initial fixed interest rate of 5.25% to, but excluding, May 15, 2025, payable semi-annually in arrears. From, and including, May 15, 2025, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current three-month term SOFR, plus 509 basis points, payable quarterly in arrears. The subordinated notes mature on May 15, 2030. These notes are redeemable by the Company in whole or in part beginning with the interest payment date of May 15, 2025.

In 2015, First Financial issued $120.0 million of subordinated notes, which have a fixed interest rate of 5.13% 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. These 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 6.00% fixed rate private placement subordinated debt in conjunction with the MSFG merger that was issued in 2015 and matured in 2025. These notes were redeemable by the Company at par following the 5 year anniversary of issuance. These subordinated notes were redeemed by the Company in the first quarter of 2021. 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 $20.0 million of fixed rate FHLB long-term advances as of December 31, 2020. This FHLB long-term debt matured in the first quarter of 2021, and as a result, as of September 30, 2021, the Company had no long-term FHLB advances. These instruments are primarily utilized to reduce overnight liquidity risk and to mitigate interest rate sensitivity on the Consolidated Balance Sheets.