FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2025

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, 2025
Financial assets
Cash and interest-bearing deposits with other banks	$	739,739	$	739,739	$	739,739	$	0	$	0
Investment securities held-to-maturity	71,595		65,911		0		65,911		0
Other investments (1)	12,739		12,739		1,691		40		11,008

Loans and leases	11,552,635		11,444,671		0		0		11,444,671
Accrued interest receivable	66,865		66,865		0		14,672		52,193

Financial liabilities





Deposits	14,433,448		14,427,984		0		14,427,984		0
Short-term borrowings	595,167		595,167		595,167		0		0
Long-term debt	221,823		227,368		0		227,368		0
Accrued interest payable	35,301		35,301		4,750		30,551		0


	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2024
Financial assets
Cash and interest-bearing deposits with other banks	$	904,486	$	904,486	$	904,486	$	0	$	0
Investment securities held-to-maturity	76,960		68,989		0		68,989		0
Other investments (1)	11,570		11,570		1,530		40		10,000

Loans and leases	11,604,987		11,417,941		0		0		11,417,941
Accrued interest receivable	67,420		67,420		0		14,263		53,157

Financial liabilities





Deposits	14,329,138		14,322,815		0		14,322,815		0
Short-term borrowings	755,452		755,452		755,452		0		0
Long-term debt	347,509		346,613		0		346,613		0
Accrued interest payable	43,411		43,411		4,663		38,748		0

(1) FHLB stock and FRB stock of $104.4 million and $103.0 million as of September 30, 2025 and December 31, 2024, respectively, are excluded from the numbers above.

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, 2025
Assets
Investment securities available-for-sale	$	94	$	3,374,340	$	48,161	$	3,422,595
Loans held for sale	0		21,466		0		21,466
Interest rate derivative contracts	0		71,404		0		71,404
Foreign exchange derivative contracts	0		227,823		0		227,823
Interest rate collars and floors	0		1,037		0		1,037
Commodities contracts	0		226		0		226
Total	$	94	$	3,696,296	$	48,161	$	3,744,551

Liabilities
Interest rate derivative contracts	$	0	$	71,806	$	0	$	71,806
Foreign exchange derivative contracts	0		227,823		0		227,823

Commodities contracts	0		226		0		226
Total	$	0	$	299,855	$	0	$	299,855


	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2024
Assets
Investment securities available-for-sale	$	91	$	3,139,503	$	44,182	$	3,183,776
Loans held for sale	0		13,181		0		13,181
Interest rate derivative contracts	0		102,152		0		102,152
Foreign exchange derivative contracts	0		294,418		0		294,418
Interest rate collars and floors	0		387		0		387
Commodities contracts	0		158		0		158
Total	$	91	$	3,549,799	$	44,182	$	3,594,072

Liabilities
Interest rate derivative contracts	$	0	$	102,265	$	0	$	102,265
Foreign exchange derivative contracts	0		294,418		0		294,418
Interest rate collars and floors	0		619		0		619
Commodities contracts	0		158		0		158
Total	$	0	$	397,460	$	0	$	397,460

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).


	Three months ended				Nine months ended
	September 30,				September 30,
(dollars in thousands)	2025		2024		2025		2024
Beginning balance	$	42,569	$	31,428	$	44,182	$	32,945
Accretion (amortization)	(20)		(47)		(60)		(73)
Increase (decrease) in fair value	6		(549)		(15)		(527)
Settlements	(5,209)		(1,924)		(6,761)		(3,437)
Transfers into level 3	10,815		17,172		10,815		17,172
Ending balance	$	48,161	$	46,080	$	48,161	$	46,080

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, 2025
Assets
Collateral dependent loans
Commercial & industrial	$	0	$	0	$	9,328

Commercial real estate	0		0		2,258
Lease financing	0		0		2,226
OREO	0		0		111


	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2024
Assets
Collateral dependent loans
Commercial & industrial	$	0	$	0	$	793

Lease financing	0		0		1,012

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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