FAIR VALUE DISCLOSURES (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2014
Financial assets
Cash and short-term investments	$	162,397	$	162,397	$	162,397	$	0	$	0
Investment securities held-to-maturity	899,502		901,784		0		901,784		0
Other investments	47,640		47,640		0		47,640		0
Loans held for sale	13,108		13,108		0		13,108		0
Loans - excluding covered loans	3,620,632		3,614,494		0		0		3,614,494
Covered loans	353,178		365,820		0		0		365,820
FDIC indemnification asset	30,420		16,901		0		0		16,901
Financial liabilities
Deposits
Noninterest-bearing	$	1,140,198	$	1,140,198	$	0	$	1,140,198	$	0
Interest-bearing demand	1,105,031		1,105,031		0		1,105,031		0
Savings	1,656,798		1,656,798		0		1,656,798		0
Time	973,100		974,087		0		974,087		0
Total deposits	4,875,127		4,876,114		0		4,876,114		0
Short-term borrowings	814,313		814,313		814,313		0		0
Long-term debt	59,693		60,983		0		60,983		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
June 30, 2014
Assets
Derivatives	$	0	$	12,678	$	0	$	(12,678	)	$	0
Investment securities available-for-sale	8,214		889,501		0		0			897,715
Total	$	8,214	$	902,179	$	0	$	(12,678	)	$	897,715
Liabilities
Derivatives	$	0	$	14,506	$	0	$	(12,678	)	$	1,828

	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
Investment securities available-for-sale	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
June 30, 2014
Assets
Impaired loans (1)	$	0	$	0	$	7,433
OREO	0		0		7,791
Covered OREO	0		0		6,937

	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).