FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

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, 2014
Financial assets
Cash and short-term investments	$	171,196	$	171,196	$	171,196	$	0	$	0
Investment securities held-to-maturity	890,806		885,327		0		885,327		0
Other investments	47,659		47,659		0		47,659		0
Loans held for sale	6,171		6,171		0		6,171		0
Loans - excluding covered loans	3,571,180		3,564,373		0		0		3,564,373
Covered loans	398,832		404,861		0		0		404,861
FDIC indemnification asset	39,003		30,387		0		0		30,387
Financial liabilities
Deposits
Noninterest-bearing	$	1,122,816	$	1,122,816	$	0	$	1,122,816	$	0
Interest-bearing demand	1,102,029		1,102,029		0		1,102,029		0
Savings	1,639,495		1,639,495		0		1,639,495		0
Time	956,049		957,047		0		957,047		0
Total deposits	4,820,389		4,821,387		0		4,821,387		0
Short-term borrowings	835,093		835,093		835,093		0		0
Long-term debt	60,163		61,787		0		61,787		0

	Carrying		Estimated Fair Value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2013
Financial assets
Cash and short-term investments	$	143,450	$	143,450	$	143,450	$	0	$	0
Investment securities held-to-maturity	837,272		824,985		0		824,985		0
Other investments	47,427		47,427		0		47,427		0
Loans held for sale	8,114		8,114		0		8,114		0
Loans - excluding covered loans	3,461,812		3,455,776		0		0		3,455,776
Covered loans	438,972		451,545		0		0		451,545
FDIC indemnification asset	45,091		34,820		0		0		34,820
Financial liabilities
Deposits
Noninterest-bearing	$	1,147,452	$	1,147,452	$	0	$	1,147,452	$	0
Interest-bearing demand	1,125,723		1,125,723		0		1,125,723		0
Savings	1,612,005		1,612,005		0		1,612,005		0
Time	952,327		951,220		0		951,220		0
Total deposits	4,837,507		4,836,400		0		4,836,400		0
Short-term borrowings	748,749		748,749		748,749		0		0
Long-term debt	60,780		62,706		0		62,706		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		Netting Adjustments (1)			Assets/Liabilities at Fair Value
March 31, 2014
Assets
Derivatives	$	0	$	12,445	$	0	$	(12,445	)	$	0
Available-for-sale investment securities	8,050		854,476		0		0			862,526
Total	$	8,050	$	866,921	$	0	$	(12,445	)	$	862,526
Liabilities
Derivatives	$	0	$	13,427	$	0	$	(12,445	)	$	982

	Fair Value Measurements Using
(Dollars in thousands)	Level 1		Level 2		Level 3		Netting Adjustments (1)			Assets/Liabilities at Fair Value
December 31, 2013
Assets
Derivatives	$	0	$	13,477	$	0	$	(13,477	)	$	0
Available-for-sale investment securities	7,976		905,625		0		0			913,601
Total	$	7,976	$	919,102	$	0	$	(13,477	)	$	913,601
Liabilities
Derivatives	$	0	$	14,431	$	0	$	(13,477	)	$	954

(1) Amounts represent the impact of legally enforceable master netting arrangements that allow First Financial to settle positive and negative positions and also cash collateral held with the same counterparties.

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, 2014
Assets
Impaired loans (1)	$	0	$	0	$	12,108
OREO	0		0		7,467
Covered OREO	0		0		11,975

	Fair Value Measurements Using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2013
Assets
Impaired loans (1)	$	0	$	0	$	13,699
OREO	0		0		5,358
Covered OREO	0		0		8,937

(1) Amounts represent the fair value of collateral for impaired loans allocated to the allowance for loan and lease losses.  Fair values are determined using actual market prices (Level 1), observable market data for similar assets and liabilities (Level 2), and independent third party valuations and borrower records, discounted as appropriate (Level 3).