Fish #1 is the dominant fish. That doesn't necessarily mean male, but usually is. Fish #2 and #3 are subdominants, possibly male on #2, but that's purely a guess. #3 is being harassed, this is the reason for the torn fins, and could be at risk from my experience. I hope the tank is large, as these fish are not the typical "dwarf" species, and are pretty bad about intraspecific aggression.
I have found a lot of confusion over thayeri and flavilabris, but I question the ID of many of the photos that are out there on these two species. The names are often assigned to collected specimens without cautious investigation first.
I had a group of 7 of these fish in 2005-06, purchased as thayeri, and only one dominant fish showed that pattern in a small tank (15 gallons) where they were held for the first 2 months. When moved to a long 30 gallon, a second fish colored up, and the two split the territory between them. One of them spawned once with a small female (eggs did not survive), the other was killed by what I had thought was another female, but it then took on dominance coloration and started harassing the other dominant fish. Not long after, I had a disaster that caused me to lose the entire tank.
I will try to post some shots of my fish later. Need to resize them first.
If you can't Dazzle them with your Brilliance, then try to Baffle them with your BullS***!