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INVESTMENTS | 9 Months Ended
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Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS For the three months ended September 30, 2019, there were sales of $284.9 million of AFS securities with $1.2 million in gross realized gains and $1.1 million gross realized losses. For the three months ended September 30, 2018, proceeds on the sale of $43.3 million of AFS securities resulted in gross gains and losses of $0.3 million and $0.4 million, respectively. For the nine months ended September 30, 2019, there were sales of $400.5 million of AFS securities with $1.9 million in gross realized gains and $1.8 million gross realized 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. For the nine months ended September 30, 2018, proceeds on the sale of $259.5 million of AFS securities resulted in gross gains and losses of $0.3 million and $0.5 million. To align with post-merger investment strategies, during the second quarter of 2018 First Financial reclassified $367.9 million of HTM securities to AFS and sold certain securities. The following is a summary of HTM and AFS investment securities as of September 30, 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 |  |  | $ | 1 |  |  | $ | 0 |  |  | $ | 100 |
Securities of U.S. government agencies and corporations |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 156 |  |  | 3 |  |  | 0 |  |  | 159 |
Mortgage-backed securities - residential |  | 22,367 |  |  | 184 |  |  | (41 | ) |  | 22,510 |  |  | 416,446 |  |  | 9,679 |  |  | (103 | ) |  | 426,022 |
Mortgage-backed securities - commercial |  | 104,586 |  |  | 1,105 |  |  | (828 | ) |  | 104,863 |  |  | 440,457 |  |  | 6,929 |  |  | (2,052 | ) |  | 445,334 |
Collateralized mortgage obligations |  | 10,545 |  |  | 0 |  |  | (118 | ) |  | 10,427 |  |  | 799,072 |  |  | 20,067 |  |  | (208 | ) |  | 818,931 |
Obligations of state and other political subdivisions |  | 11,280 |  |  | 705 |  |  | (61 | ) |  | 11,924 |  |  | 588,634 |  |  | 25,140 |  |  | (61 | ) |  | 613,713 |
Asset-backed securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 465,542 |  |  | 1,652 |  |  | (1,107 | ) |  | 466,087 |
Other securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 78,745 |  |  | 1,654 |  |  | (243 | ) |  | 80,156 |
Total |  | $ | 148,778 |  |  | $ | 1,994 |  |  | $ | (1,048 | ) |  | $ | 149,724 |  |  | $ | 2,789,151 |  |  | $ | 65,125 |  |  | $ | (3,774 | ) |  | $ | 2,850,502 |
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 September 30, 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 |  |  | $ | 8,694 |  |  | $ | 8,713 |
Due after one year through five years |  | 0 |  |  | 0 |  |  | 48,276 |  |  | 49,127 |
Due after five years through ten years |  | 4,321 |  |  | 4,830 |  |  | 147,357 |  |  | 152,333 |
Due after ten years |  | 6,959 |  |  | 7,094 |  |  | 463,307 |  |  | 483,955 |
Mortgage-backed securities - residential |  | 22,367 |  |  | 22,510 |  |  | 416,446 |  |  | 426,022 |
Mortgage-backed securities - commercial |  | 104,586 |  |  | 104,863 |  |  | 440,457 |  |  | 445,334 |
Collateralized mortgage obligations |  | 10,545 |  |  | 10,427 |  |  | 799,072 |  |  | 818,931 |
Asset-backed securities |  | 0 |  |  | 0 |  |  | 465,542 |  |  | 466,087 |
Total |  | $ | 148,778 |  |  | $ | 149,724 |  |  | $ | 2,789,151 |  |  | $ | 2,850,502 |
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 September 30, 2019 or December 31, 2018. As of September 30, 2019, the Company's investment securities portfolio consisted of 1,284 securities, of which 119 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:
|  | September 30, 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 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Securities of U.S. Government agencies and corporations |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Mortgage-backed securities - residential |  | 14,365 |  |  | (45 | ) |  | 11,851 |  |  | (99 | ) |  | 26,216 |  |  | (144 | )
Mortgage-backed securities - commercial |  | 52,281 |  |  | (60 | ) |  | 89,681 |  |  | (2,820 | ) |  | 141,962 |  |  | (2,880 | )
Collateralized mortgage obligations |  | 43,732 |  |  | (107 | ) |  | 29,908 |  |  | (219 | ) |  | 73,640 |  |  | (326 | )
Obligations of state and other political subdivisions |  | 14,202 |  |  | (44 | ) |  | 6,714 |  |  | (78 | ) |  | 20,916 |  |  | (122 | )
Asset-backed securities |  | 259,681 |  |  | (824 | ) |  | 40,776 |  |  | (283 | ) |  | 300,457 |  |  | (1,107 | )
Other securities |  | 4,160 |  |  | (10 | ) |  | 5,525 |  |  | (233 | ) |  | 9,685 |  |  | (243 | )
Total |  | $ | 388,421 |  |  | $ | (1,090 | ) |  | $ | 184,455 |  |  | $ | (3,732 | ) |  | $ | 572,876 |  |  | $ | (4,822 | )
|  | 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.

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