FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2015

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
December 31, 2015
Financial assets
Cash and short-term investments	$	148,575	$	148,575	$	148,575	$	0	$	0
Investment securities held-to-maturity	726,259		731,951		0		731,951		0
Other investments	53,725		53,725		0		53,725		0
Loans held for sale	20,957		20,957		0		20,957		0
Loans and leases, net of ALLL	5,335,362		5,381,065		0		0		5,381,065
FDIC indemnification asset	17,630		9,756		0		0		9,756
Financial liabilities
Deposits
Noninterest-bearing	$	1,413,404	$	1,413,404	$	0	$	1,413,404	$	0
Interest-bearing demand	1,414,291		1,414,291		0		1,414,291		0
Savings	1,945,805		1,945,805		0		1,945,805		0
Time	1,406,124		1,406,489		0		1,406,489		0
Total deposits	6,179,624		6,179,989		0		6,179,989		0
Short-term borrowings	938,425		938,425		938,425		0		0
Long-term debt	119,540		118,691		0		118,691		0

	Carrying		Estimated Fair Value
(Dollars in thousands)	Value		Total		Level 1		Level 2		Level 3
December 31, 2014
Financial assets
Cash and short-term investments	$	132,752	$	132,752	$	132,752	$	0	$	0
Investment securities held-to-maturity	867,996		874,749		0		874,749		0
Other investments	52,626		52,626		0		52,626		0
Loans held for sale	11,005		11,005		0		11,005		0
Loans and leases, net of ALLL	4,724,377		4,763,619		0		0		4,763,619
FDIC indemnification asset	22,666		12,449		0		0		12,449
Financial liabilities
Deposits
Noninterest-bearing	$	1,285,527	$	1,285,527	$	0	$	1,285,527	$	0
Interest-bearing demand	1,225,378		1,225,378		0		1,225,378		0
Savings	1,889,473		1,889,473		0		1,889,473		0
Time	1,255,364		1,254,070		0		1,254,070		0
Total deposits	5,655,742		5,654,448		0		5,654,448		0
Short-term borrowings	661,392		661,392		661,392		0		0
Long-term debt	48,241		49,674		0		49,674		0

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as follows:

	Fair Value Measurements Using						Assets/Liabilities
(Dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
December 31, 2015
Assets
Derivatives	$	0	$	14,111	$	0	$	14,111
Available-for-sale investment securities	8,583		1,182,059		0		1,190,642
Total	$	8,583	$	1,196,170	$	0	$	1,204,753
Liabilities
Derivatives	$	0	$	14,243	$	0	$	14,243

	Fair Value Measurements Using						Assets/Liabilities
(Dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
December 31, 2014
Assets
Derivatives	$	0	$	11,399	$	0	$	11,399
Available-for-sale investment securities	8,406		832,062		0		840,468
Total	$	8,406	$	843,461	$	0	$	851,867
Liabilities
Derivatives	$	0	$	13,662	$	0	$	13,662

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
December 31, 2015
Assets
Impaired loans	$	0	$	0	$	8,008
OREO	0		0		7,598

	Fair Value Measurements Using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2014
Assets
Impaired loans	$	0	$	0	$	14,096
OREO	0		0		13,094