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FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023
Financial assets
Cash and short-term investments						$	505,300					$	505,300					$	505,300					$	0					$	0
Investment securities held-to-maturity						83,070						75,762						0						75,762						0
Other investments						143,606						143,606						1,076						133,159						9,371
Loans and leases						10,291,794						9,923,707						0						0						9,923,707
Accrued interest receivable						65,006						65,006						0						15,933						49,073
Financial liabilities
Deposits						12,674,684						12,644,951						0						12,644,951						0
Short-term borrowings						1,217,560						1,217,560						1,217,560						0						0
Long-term debt						342,647						344,131						0						344,131						0
Accrued interest payable						29,896						29,896						8,671						21,225						0

						Carrying						Estimated fair value
(Dollars in thousands)						value						Total						Level 1						Level 2						Level 3
December 31, 2022
Financial assets
Cash and short-term investments						$	595,683					$	595,683					$	595,683					$	0					$	0
Investment securities held-to-maturity						84,021						76,485						0						76,485						0
Other investments						143,160						143,160						1,171						132,853						9,136
Loans and leases						10,165,994						9,916,353						0						0						9,916,353
Accrued interest receivable						63,721						63,721						0						16,233						47,488
Financial liabilities
Deposits						12,701,177						12,670,747						0						12,670,747						0
Short-term borrowings						1,287,156						1,287,156						1,287,156						0						0
Long-term debt						346,672						348,041						0						348,041						0
Accrued interest payable						11,150						11,150						3,835						7,315						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
March 31, 2023
Assets
Investment securities available-for-sale						$	33,421					$	3,316,713					$	34,815					$	3,384,949
Loans held for sale						0						9,280						0						9,280
Interest rate derivative contracts						0						124,765						0						124,765
Foreign exchange derivative contracts						0						177,211						0						177,211
Total						$	33,421					$	3,627,969					$	34,815					$	3,696,205
Liabilities
Interest rate derivative contracts						$	0					$	124,795					$	0					$	124,795
Foreign exchange derivative contracts						0						177,211						0						177,211
Total						$	0					$	302,006					$	0					$	302,006

						Fair value measurements using
(Dollars in thousands)						Level 1						Level 2						Level 3						Assets/liabilities at fair value
December 31, 2022
Assets
Investment securities available-for-sale						$	32,696					$	3,341,095					$	35,857					$	3,409,648
Loans held for sale						0						7,918						0						7,918
Interest rate derivative contracts						0						152,846						0						152,846
Foreign exchange derivative contracts						0						204,882						0						204,882
Total						$	32,696					$	3,706,741					$	35,857					$	3,775,294
Liabilities
Interest rate derivative contracts						$	0					$	153,119					$	0					$	153,119
Foreign exchange derivative contracts						$	0					$	204,882					$	0					$	204,882
Total						$	0					$	358,001					$	0					$	358,001

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 months ended March 31, 2023 and March 31, 2022.

												Three months ended
												March 31,
(dollars in thousands)																		2023						2022
Beginning balance																		$	35,857					$	38,181
Accretion (amortization)																		(25)						(13)
Increase (decrease) in fair value																		12						13
Settlements																		(1,029)						(720)
Ending balance																		$	34,815					$	37,461

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, 2023
Assets
Collateral dependent loans
Commercial						$	0					$	0					$	5,760
Commercial real estate						0						0						0
OREO						0						0						0
Operating leases						0						0						0

						Fair value measurements using
(Dollars in thousands)						Level 1						Level 2						Level 3
December 31, 2022
Assets
Collateral dependent loans
Commercial						$	0					$	0					$	4,240
Commercial real estate						0						0						4,015
OREO						0						0						0
Operating leases						0						0						0

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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