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FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 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
September 30, 2023
Financial assets
Cash and short-term investments						$	673,202					$	673,202					$	673,202					$	0					$	0
Investment securities held-to-maturity						81,326						69,845						0						69,845						0
Other investments						133,725						133,725						992						123,413						9,320
Loans and leases						10,501,618						10,135,741						0						0						10,135,741
Accrued interest receivable						70,471						70,471						0						16,436						54,035
Financial liabilities
Deposits						12,915,553						12,889,572						0						12,889,572						0
Short-term borrowings						974,188						974,188						974,188						0						0
Long-term debt						340,902						343,815						0						343,815						0
Accrued interest payable						51,013						51,013						16,613						34,400						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
September 30, 2023
Assets
Investment securities available-for-sale						$	32,141					$	2,979,075					$	33,145					$	3,044,361
Loans held for sale						0						12,391						0						12,391
Interest rate derivative contracts						0						173,470						0						173,470
Foreign exchange derivative contracts						0						194,956						0						194,956
Interest rate floor						0						558						0						558
Total						$	32,141					$	3,360,450					$	33,145					$	3,425,736
Liabilities
Interest rate derivative contracts						$	0					$	173,652					$	0					$	173,652
Foreign exchange derivative contracts						0						194,956						0						194,956
Interest rate collars						0						1,984						0						1,984
Total						$	0					$	370,592					$	0					$	370,592

						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 and nine months ended September 30, 2023 and September 30, 2022.

						Three months ended												Nine months ended
						September 30,												September 30,
(dollars in thousands)						2023						2022						2023						2022
Beginning balance						$	34,132					$	36,796					$	35,857					$	38,181
Accretion (amortization)						(30)						(22)						(84)						(45)
Increase (decrease) in fair value						(162)						9						(119)						34
Settlements						(795)						(730)						(2,509)						(2,117)
Ending balance						$	33,145					$	36,053					$	33,145					$	36,053

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, 2023
Assets
Collateral dependent loans
Commercial						$	0					$	0					$	1,511
Commercial real estate						0						0						17,926
OREO						0						0						38
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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