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FAIR VALUE DISCLOSURES (Tables)
 9 Months Ended
Sep. 30, 2019
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
September 30, 2019
 
 
 
 
 
 
 
 
 
 
Financial assets
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments
 
$
282,151

 
$
282,151

 
$
282,151

 
$
0

 
$
0

Investment securities held-to-maturity
 
148,778

 
149,724

 
0

 
149,724

 
0

Other investments
 
124,965

 
N/A

 
N/A

 
N/A

 
N/A

Loans held for sale
 
23,528

 
23,528

 
0

 
23,528

 
0

Loans and leases
 
9,007,126

 
8,918,940

 
0

 
0

 
8,918,940

Accrued interest receivable
 
41,321

 
41,321

 
0

 
12,653

 
28,668

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Deposits
 
10,083,857

 
10,083,186

 
0

 
10,083,186

 
0

Short-term borrowings
 
1,214,186

 
1,214,186

 
1,214,186

 
0

 
0

Long-term debt
 
498,778

 
501,174

 
0

 
501,174

 
0

Accrued interest payable
 
13,287

 
13,287

 
3,179

 
10,108

 
0



 
 
Carrying
 
Estimated fair value
(Dollars in thousands)
 
value
 
Total
 
Level 1
 
Level 2
 
Level 3
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Financial assets
 
 
 

 

 
 
 
 
Cash and short-term investments
 
$
273,959

 
$
273,959

 
$
273,959

 
$
0

 
$
0

Investment securities held-to-maturity
 
429,328

 
424,118

 
0

 
424,118

 
0

Other investments
 
115,660

 
N/A

 
N/A

 
N/A

 
N/A

Loans held for sale
 
4,372

 
4,372

 
0

 
4,372

 
0

Loans and leases
 
8,767,672

 
8,662,868

 
0

 
0

 
8,662,868

Accrued interest receivable
 
41,816

 
41,816

 
0

 
13,819

 
27,997

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Deposits
 
10,140,394

 
10,113,475

 
0

 
10,113,475

 
0

Short-term borrowings
 
1,040,691

 
1,040,691

 
1,040,691

 
0

 
0

Long-term debt
 
570,739

 
557,933

 
0

 
557,933

 
0

Accrued interest payable
 
12,126

 
12,126

 
2,035

 
10,091

 
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
 
Assets/liabilities
at fair value
September 30, 2019
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Investment securities available-for-sale
 
$
100

 
$
2,840,539

 
$
9,863

 
$
2,850,502

Interest rate derivative contracts
 
0

 
98,645

 
0

 
98,645

Foreign exchange derivative contracts
 
0

 
49,539

 
0

 
49,539

Total
 
$
100

 
$
2,988,723

 
$
9,863

 
$
2,998,686

 
 
 
 
 
 
 
 
 
Liabilities
 
 

 
 

 
 

 
 

Interest rate derivative contracts
 
$
0

 
$
99,012

 
$
0

 
$
99,012

Foreign exchange derivative contracts
 
0

 
49,539

 
0

 
49,539

Total
 
$
0

 
$
148,551

 
$
0

 
$
148,551


 
 
Fair value measurements using
 
 
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Assets/liabilities
at fair value
December 31, 2018
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Investment securities available-for-sale
 
$
97

 
$
2,764,443

 
$
14,715

 
$
2,779,255

Derivatives
 
0

 
29,543

 
0

 
29,543

Total
 
$
97

 
$
2,793,986

 
$
14,715

 
$
2,808,798

 
 
 
 
 
 
 
 
 
Liabilities
 
 

 
 

 
 

 
 

Derivatives
 
$
0

 
$
29,336

 
$
0

 
$
29,336
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2019. No AFS securities were measured at fair value on a recurring basis for the three or nine months ended September 30, 2018.

 
 
Three months ended
 
Nine months ended
(dollars in thousands)
 
September 30, 2019
 
September 30, 2019
Beginning balance
 
$
12,798

 
$
14,715

Accretion (amortization)
 
5

 
(557
)
Increase (decrease) in fair value
 
0

 
33

Settlements
 
(2,940
)
 
(4,328
)
Ending balance
 
$
9,863

 
$
9,863
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
September 30, 2019
 
 
 
 
 
 
Assets
 
 
 
 
 
 
Impaired loans
 
$
0

 
$
0

 
$
1,097

OREO
 
0

 
0

 
1,157

 
 
Fair value measurements using
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
December 31, 2018
 
 
 
 
 
 
Assets
 
 
 
 
 
 
Impaired loans
 
$
0

 
$
0

 
$
1,320

OREO
 
0

 
0

 
1,089