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INVESTMENTS | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS For the three months ended September 30, 2025, there were $189.3 million sales of AFS securities with $3.4 million of gross realized gains and no gross realized losses. For the nine months ended September 30, 2025 there were $353.9 million of sales of AFS securities with $3.5 million of gross realized gains and gross realized losses of $10.0 million. For the three months ended September 30, 2024, there were $135.4 million sales of AFS securities with gross realized gains of $0.7 million and gross realized losses of $1.0 million. For the nine months ended September 30, 2024, there were $347.4 million of sales of AFS securities with $1.1 million of gross realized gains and gross realized losses of $6.9 million. Additionally, during the nine months ended September 30, 2024, First Financial sold its remaining Class B Visa shares, which resulted in proceeds of $11.6 million, with gross realized gains of $2.2 million, which is included in Net gain (loss) on investment securities on the Consolidated Statements of Income. First Financial had five AFS securities with unrealized losses due to credit deterioration at September 30, 2025. These securities totaled $21.0 million, net of $9.1 million unrealized losses. The Company had two AFS securities with unrealized losses due to credit deterioration at December 31, 2024, which totaled $11.1 million, and had unrealized losses of $1.1 million. The Company continues to monitor these securities and believes that the Company will receive the full par value. The following is a summary of HTM and AFS investment securities as of September 30, 2025:
|  | 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 |  |  | $ | (5) |  |  | $ | 94 |
Securities of U.S. government agencies and corporations |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 73,204 |  |  | 0 |  |  | (6,771) |  |  | 66,433 |
Mortgage-backed securities - residential |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1,358,833 |  |  | 8,152 |  |  | (74,625) |  |  | 1,292,360 |
Mortgage-backed securities - commercial |  | 28,176 |  |  | 0 |  |  | (3,669) |  |  | 24,507 |  |  | 311,509 |  |  | 957 |  |  | (19,457) |  |  | 293,009 |
Collateralized mortgage obligations |  | 6,349 |  |  | 0 |  |  | (530) |  |  | 5,819 |  |  | 605,089 |  |  | 3,917 |  |  | (38,729) |  |  | 570,277 |
Obligations of state and other political subdivisions |  | 8,320 |  |  | 80 |  |  | (188) |  |  | 8,212 |  |  | 621,066 |  |  | 634 |  |  | (102,632) |  |  | 519,068 |
Asset-backed securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 563,927 |  |  | 1,959 |  |  | (14,082) |  |  | 551,804 |
Other securities |  | 28,750 |  |  | 0 |  |  | (1,377) |  |  | 27,373 |  |  | 136,269 |  |  | 522 |  |  | (7,241) |  |  | 129,550 |
Total |  | $ | 71,595 |  |  | $ | 80 |  |  | $ | (5,764) |  |  | $ | 65,911 |  |  | $ | 3,669,996 |  |  | $ | 16,141 |  |  | $ | (263,542) |  |  | $ | 3,422,595 |
The following is a summary of HTM and AFS investment securities as of December 31, 2024:
|  | 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 |  |  | $ | (9) |  |  | $ | 90 |
Securities of U.S. government agencies and corporations |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 83,224 |  |  | 0 |  |  | (11,546) |  |  | 71,678 |
Mortgage-backed securities - residential |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1,102,242 |  |  | 508 |  |  | (104,208) |  |  | 998,542 |
Mortgage-backed securities - commercial |  | 30,444 |  |  | 0 |  |  | (4,454) |  |  | 25,990 |  |  | 382,727 |  |  | 26 |  |  | (25,381) |  |  | 357,372 |
Collateralized mortgage obligations |  | 7,007 |  |  | 0 |  |  | (788) |  |  | 6,219 |  |  | 620,315 |  |  | 1,449 |  |  | (52,599) |  |  | 569,165 |
Obligations of state and other political subdivisions |  | 8,259 |  |  | 42 |  |  | (339) |  |  | 7,962 |  |  | 630,813 |  |  | 357 |  |  | (109,904) |  |  | 521,266 |
Asset-backed securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 555,484 |  |  | 998 |  |  | (22,379) |  |  | 534,103 |
Other securities |  | 31,250 |  |  | 0 |  |  | (2,432) |  |  | 28,818 |  |  | 137,748 |  |  | 120 |  |  | (6,308) |  |  | 131,560 |
Total |  | $ | 76,960 |  |  | $ | 42 |  |  | $ | (8,013) |  |  | $ | 68,989 |  |  | $ | 3,512,652 |  |  | $ | 3,458 |  |  | $ | (332,334) |  |  | $ | 3,183,776 |
The following table provides a summary of investment securities by contractual maturity as of September 30, 2025, 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 |  | $ | 715 |  |  | $ | 715 |  |  | $ | 14,381 |  |  | $ | 13,280 |
Due after one year through five years |  | 6,167 |  |  | 6,247 |  |  | 187,361 |  |  | 168,726 |
Due after five years through ten years |  | 28,750 |  |  | 27,373 |  |  | 158,546 |  |  | 135,062 |
Due after ten years |  | 1,438 |  |  | 1,250 |  |  | 470,350 |  |  | 398,077 |
Mortgage-backed securities - residential |  | 0 |  |  | 0 |  |  | 1,358,833 |  |  | 1,292,360 |
Mortgage-backed securities - commercial |  | 28,176 |  |  | 24,507 |  |  | 311,509 |  |  | 293,009 |
Collateralized mortgage obligations |  | 6,349 |  |  | 5,819 |  |  | 605,089 |  |  | 570,277 |
Asset-backed securities |  | 0 |  |  | 0 |  |  | 563,927 |  |  | 551,804 |
Total |  | $ | 71,595 |  |  | $ | 65,911 |  |  | $ | 3,669,996 |  |  | $ | 3,422,595 |
Unrealized gains and losses on debt securities available-for-sale are generally due to fluctuations in current market yields relative to the yields of the securities at their amortized cost. All AFS securities with unrealized losses are reviewed quarterly to determine if any impairment exists, requiring a write-down to fair value. For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities in an unrealized loss position that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Other than two securities on which the Company recorded impairment losses of $3.4 million and $9.7 million in the three and nine months ended September 30, 2025 and 2024, respectively, 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 prior to maturity or recovery of the recorded value. Other than the previously mentioned securities on which the Company recorded impairment losses, 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 prior to maturity or recovery of the recorded value. Additionally, based on the Company's credit assessment of AFS securities in an unrealized loss position, the Company recorded no reserves for the periods ended September 30, 2025 or December 31, 2024. As of September 30, 2025, the Company's investment securities portfolio consisted of 740 AFS and HTM securities, of which 534 were in an unrealized loss position. As of December 31, 2024, the Company's investment securities portfolio consisted of 743 AFS and HTM securities, of which 644 were in an unrealized loss position. Primarily all of First Financial’s HTM debt securities are issued by U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. The remainder of the Company's HTM securities are non-agency collateralized mortgage obligations and obligations of state and other political subdivisions which currently carry ratings no lower than A+. There were no HTM securities on nonaccrual status or past due at September 30, 2025 or December 31, 2024. Management measures expected credit losses on HTM debt securities on a collective basis by security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company did not record an ACL for these securities as of September 30, 2025 or December 31, 2024. The following tables provide the fair value and gross unrealized losses of AFS investment securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:
|  | September 30, 2025
|  | 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 |  |  | $ | 94 |  |  | $ | (5) |  |  | $ | 94 |  |  | $ | (5) |
Securities of U.S. Government agencies and corporations |  | 0 |  |  | 0 |  |  | 66,433 |  |  | (6,771) |  |  | 66,433 |  |  | (6,771) |
Mortgage-backed securities - residential |  | 91,271 |  |  | (532) |  |  | 586,441 |  |  | (74,093) |  |  | 677,712 |  |  | (74,625) |
Mortgage-backed securities - commercial |  | 26,320 |  |  | (92) |  |  | 185,677 |  |  | (19,365) |  |  | 211,997 |  |  | (19,457) |
Collateralized mortgage obligations |  | 7,218 |  |  | (15) |  |  | 292,317 |  |  | (38,714) |  |  | 299,535 |  |  | (38,729) |
Obligations of state and other political subdivisions |  | 11,297 |  |  | (19) |  |  | 459,190 |  |  | (102,613) |  |  | 470,487 |  |  | (102,632) |
Asset-backed securities |  | 26,305 |  |  | (23) |  |  | 66,899 |  |  | (14,059) |  |  | 93,204 |  |  | (14,082) |
Other securities |  | 3,499 |  |  | (1) |  |  | 101,030 |  |  | (7,240) |  |  | 104,529 |  |  | (7,241) |
Total |  | $ | 165,910 |  |  | $ | (682) |  |  | $ | 1,758,081 |  |  | $ | (262,860) |  |  | $ | 1,923,991 |  |  | $ | (263,542) |
|  | December 31, 2024
|  | 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 |  |  | $ | 90 |  |  | $ | (9) |  |  | $ | 90 |  |  | $ | (9) |
Securities of U.S. Government agencies and corporations |  | 0 |  |  | 0 |  |  | 71,678 |  |  | (11,546) |  |  | 71,678 |  |  | (11,546) |
Mortgage-backed securities - residential |  | 417,516 |  |  | (9,130) |  |  | 503,321 |  |  | (95,078) |  |  | 920,837 |  |  | (104,208) |
Mortgage-backed securities - commercial |  | 26,516 |  |  | (67) |  |  | 286,589 |  |  | (25,314) |  |  | 313,105 |  |  | (25,381) |
Collateralized mortgage obligations |  | 120,670 |  |  | (1,776) |  |  | 296,813 |  |  | (50,823) |  |  | 417,483 |  |  | (52,599) |
Obligations of state and other political subdivisions |  | 19,636 |  |  | (351) |  |  | 478,083 |  |  | (109,553) |  |  | 497,719 |  |  | (109,904) |
Asset-backed securities |  | 26,389 |  |  | (189) |  |  | 159,135 |  |  | (22,190) |  |  | 185,524 |  |  | (22,379) |
Other securities |  | 9,988 |  |  | (12) |  |  | 115,452 |  |  | (6,296) |  |  | 125,440 |  |  | (6,308) |
Total |  | $ | 620,715 |  |  | $ | (11,525) |  |  | $ | 1,911,161 |  |  | $ | (320,809) |  |  | $ | 2,531,876 |  |  | $ | (332,334) |
The following tables provide the fair value and gross unrecognized losses of HTM investment securities in an unrecognized loss position for which an ACL has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:
|  | September 30, 2025
|  | Less than 12 months |  | 12 months or more |  | Total
(Dollars in thousands) |  | Fair value |  | Unrecognized loss |  | Fair value |  | Unrecognized loss |  | Fair value |  | Unrecognized 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 |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Mortgage-backed securities - commercial |  | 0 |  |  | 0 |  |  | 24,507 |  |  | (3,669) |  |  | 24,507 |  |  | (3,669) |
Collateralized mortgage obligations |  | 0 |  |  | 0 |  |  | 5,819 |  |  | (530) |  |  | 5,819 |  |  | (530) |
Obligations of state and other political subdivisions |  | 478 |  |  | (1) |  |  | 1,250 |  |  | (187) |  |  | 1,728 |  |  | (188) |
Asset-backed securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Other securities |  | 0 |  |  | 0 |  |  | 27,373 |  |  | (1,377) |  |  | 27,373 |  |  | (1,377) |
Total |  | $ | 478 |  |  | $ | (1) |  |  | $ | 58,949 |  |  | $ | (5,763) |  |  | $ | 59,427 |  |  | $ | (5,764) |
|  | December 31, 2024
|  | Less than 12 months |  | 12 months or more |  | Total
(Dollars in thousands) |  | Fair value |  | Unrecognized loss |  | Fair value |  | Unrecognized loss |  | Fair value |  | Unrecognized 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 |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Mortgage-backed securities - commercial |  | 0 |  |  | 0 |  |  | 25,990 |  |  | (4,454) |  |  | 25,990 |  |  | (4,454) |
Collateralized mortgage obligations |  | 0 |  |  | 0 |  |  | 6,219 |  |  | (788) |  |  | 6,219 |  |  | (788) |
Obligations of state and other political subdivisions |  | 3,111 |  |  | (33) |  |  | 2,288 |  |  | (306) |  |  | 5,399 |  |  | (339) |
Asset-backed securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Other securities |  | 0 |  |  | 0 |  |  | 28,818 |  |  | (2,432) |  |  | 28,818 |  |  | (2,432) |
Total |  | $ | 3,111 |  |  | $ | (33) |  |  | $ | 63,315 |  |  | $ | (7,980) |  |  | $ | 66,426 |  |  | $ | (8,013) |
For further detail on the fair value of investment securities, see Note 17 – Fair Value Disclosures.

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