XML 22 R11.htm IDEA: XBRL DOCUMENT v3.19.1
INVESTMENTS
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS

For the three months ended March 31, 2019 and March 31, 2018, there were no sales of AFS securities and therefore no associated gains or losses. In conjunction with the adoption of ASU 2017-12 in the first quarter of 2019, First Financial reclassified $268.7 million of HTM securities to AFS resulting in a $0.2 million realized loss recorded in the Consolidated Statement of Income.

The following is a summary of HTM and AFS investment securities as of March 31, 2019:
  
 
Held-to-maturity
 
Available-for-sale
(Dollars in thousands)
 
Amortized
cost
 
Unrecognized gain
 
Unrecognized loss
 
Fair
value
 
Amortized
cost
 
Unrealized
gain
 
Unrealized
loss
 
Fair
value
U.S. Treasuries
 
$
0

 
$
0

 
$
0

 
$
0

 
$
99

 
$
0

 
$
(1
)
 
$
98

Securities of U.S. government agencies and corporations
 
0

 
0

 
0

 
0

 
30,880

 
74

 
(355
)
 
30,599

Mortgage-backed securities - residential
 
24,937

 
72

 
(671
)
 
24,338

 
557,730

 
4,566

 
(3,449
)
 
558,847

Mortgage-backed securities - commercial
 
109,826

 
0

 
(4,414
)
 
105,412

 
464,611

 
1,821

 
(2,988
)
 
463,444

Collateralized mortgage obligations
 
11,936

 
0

 
(429
)
 
11,507

 
919,486

 
9,214

 
(3,067
)
 
925,633

Obligations of state and other political subdivisions
 
11,606

 
440

 
(228
)
 
11,818

 
542,265

 
12,496

 
(504
)
 
554,257

Asset-backed securities
 
0

 
0

 
0

 
0

 
502,018

 
1,180

 
(1,790
)
 
501,408

Other securities
 
0

 
0

 
0

 
0

 
78,996

 
853

 
(324
)
 
79,525

Total
 
$
158,305

 
$
512

 
$
(5,742
)
 
$
153,075

 
$
3,096,085

 
$
30,204

 
$
(12,478
)
 
$
3,113,811


The following is a summary of HTM and AFS investment securities as of December 31, 2018:
  
 
Held-to-maturity
 
Available-for-sale
(Dollars in thousands)
 
Amortized
cost
 
Unrecognized gain
 
Unrecognized
loss
 
Fair
value
 
Amortized
cost
 
Unrealized
gain
 
Unrealized
loss
 
Fair
value
U.S. Treasuries
 
$
0

 
$
0

 
$
0

 
$
0

 
$
99

 
$
0

 
$
(2
)
 
$
97

Securities of U.S. government agencies and corporations
 
0

 
0

 
0

 
0

 
32,095

 
57

 
(233
)
 
31,919

Mortgage-backed securities - residential
 
25,565

 
0

 
(1,045
)
 
24,520

 
565,071

 
691

 
(7,163
)
 
558,599

Mortgage-backed securities - commercial
 
147,780

 
258

 
(4,385
)
 
143,653

 
423,797

 
819

 
(3,581
)
 
421,035

Collateralized mortgage obligations
 
12,540

 
0

 
(633
)
 
11,907

 
928,586

 
4,319

 
(6,158
)
 
926,747

Obligations of state and other political subdivisions
 
243,443

 
1,954

 
(1,359
)
 
244,038

 
257,300

 
2,554

 
(1,429
)
 
258,425

Asset-backed securities
 
0

 
0

 
0

 
0

 
511,430

 
611

 
(2,810
)
 
509,231

Other securities
 
0

 
0

 
0

 
0

 
73,948

 
358

 
(1,104
)
 
73,202

Total
 
$
429,328

 
$
2,212

 
$
(7,422
)
 
$
424,118

 
$
2,792,326

 
$
9,409

 
$
(22,480
)
 
$
2,779,255



The following table provides a summary of investment securities by contractual maturity as of March 31, 2019, except for residential and commercial mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which are shown as single totals due to the unpredictability of the timing in principal repayments.
 
 
Held-to-maturity
 
Available-for-sale
(Dollars in thousands)
 
Amortized
cost
 
Fair
value
 
Amortized
cost
 
Fair
value
By Contractual Maturity:
 
 
 
 
 
 
 
 
Due in one year or less
 
$
0

 
$
0

 
$
18,503

 
$
18,522

Due after one year through five years
 
0

 
0

 
52,079

 
52,547

Due after five years through ten years
 
4,247

 
4,579

 
162,531

 
165,532

Due after ten years
 
7,359

 
7,239

 
419,127

 
427,878

Mortgage-backed securities - residential
 
24,937

 
24,338

 
557,730

 
558,847

Mortgage-backed securities - commercial
 
109,826

 
105,412

 
464,611

 
463,444

Collateralized mortgage obligations
 
11,936

 
11,507

 
919,486

 
925,633

Asset-backed securities
 
0

 
0

 
502,018

 
501,408

Total
 
$
158,305

 
$
153,075

 
$
3,096,085

 
$
3,113,811



Unrealized gains and losses on debt securities are generally due to fluctuations in current market yields relative to the yields of the debt securities at their amortized cost. All securities with unrealized losses are reviewed quarterly to determine if any impairment is considered other than temporary, requiring a write-down to fair value. First Financial considers the percentage loss on a security, duration of the loss, average life or duration of the security, credit rating of the security and payment performance, as well as the Company's intent and ability to hold the security to maturity, when determining whether any impairment is other than temporary. At this time, First Financial does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities temporarily impaired prior to maturity or recovery of the recorded value. First Financial had no other than temporary impairment related to its investment securities portfolio as of March 31, 2019 or December 31, 2018.

As of March 31, 2019, the Company's investment securities portfolio consisted of 1,395 securities, of which 303 were in an unrealized loss position. As of December 31, 2018, the Company's investment securities portfolio consisted of 1,417 securities, of which 504 were in an unrealized loss position.

The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:
 
 
March 31, 2019
 
 
Less than 12 months
 
12 months or more
 
Total
(Dollars in thousands)
 
Fair
value
 
Unrealized
loss
 
Fair
value
 
Unrealized
loss
 
Fair
value
 
Unrealized
loss
U.S. Treasuries
 
$
0

 
$
0

 
$
98

 
$
(1
)
 
$
98

 
$
(1
)
Securities of U.S. Government agencies and corporations
 
6,046

 
(77
)
 
13,946

 
(278
)
 
19,992

 
(355
)
Mortgage-backed securities - residential
 
12,585

 
(322
)
 
239,305

 
(3,798
)
 
251,890

 
(4,120
)
Mortgage-backed securities - commercial
 
140,670

 
(264
)
 
195,282

 
(7,138
)
 
335,952

 
(7,402
)
Collateralized mortgage obligations
 
90,610

 
(431
)
 
212,286

 
(3,065
)
 
302,896

 
(3,496
)
Obligations of state and other political subdivisions
 
12,080

 
(30
)
 
42,954

 
(702
)
 
55,034

 
(732
)
Asset-backed securities
 
224,565

 
(1,325
)
 
48,376

 
(465
)
 
272,941

 
(1,790
)
Other securities
 
8,636

 
(78
)
 
7,545

 
(246
)
 
16,181

 
(324
)
Total
 
$
495,192

 
$
(2,527
)
 
$
759,792

 
$
(15,693
)
 
$
1,254,984

 
$
(18,220
)

 
 
December 31, 2018
 
 
Less than 12 months
 
12 months or more
 
Total
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
(Dollars in thousands)
 
value
 
loss
 
value
 
loss
 
value
 
loss
U.S. Treasuries
 
$
0

 
$
0

 
$
97

 
$
(2
)
 
$
97

 
$
(2
)
Securities of U.S. Government agencies and corporations
 
0

 
0

 
16,777

 
(233
)
 
16,777

 
(233
)
Mortgage-backed securities - residential
 
186,029

 
(935
)
 
264,795

 
(7,273
)
 
450,824

 
(8,208
)
Mortgage-backed securities - commercial
 
147,754

 
(369
)
 
232,363

 
(7,597
)
 
380,117

 
(7,966
)
Collateralized mortgage obligations
 
194,795

 
(1,546
)
 
240,514

 
(5,245
)
 
435,309

 
(6,791
)
Obligations of state and other political subdivisions
 
62,805

 
(299
)
 
86,644

 
(2,489
)
 
149,449

 
(2,788
)
Asset-backed securities
 
336,437

 
(2,312
)
 
37,105

 
(498
)
 
373,542

 
(2,810
)
Other securities
 
33,752

 
(884
)
 
4,570

 
(220
)
 
38,322

 
(1,104
)
Total
 
$
961,572

 
$
(6,345
)
 
$
882,865

 
$
(23,557
)
 
$
1,844,437

 
$
(29,902
)


For further detail on the fair value of investment securities, see Note 16 – Fair Value Disclosures.