NOTE 6: INVESTMENTS

The following is a summary of held-to-maturity and available-for-sale investment securities as of September 30, 2011.



	Held-to-Maturity								Available-for-Sale
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Market Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Market Value
Securities of U.S. government agencies and corporations	$	0	$	0	$	0	$	0	$	5,027	$	85	$	0		$	5,112
Mortgage-backed securities	95		3		0		98		1,065,948		27,503		(267		)	1,093,184
Obligations of state and other political subdivisions	2,629		226		0		2,855		11,509		154		(26		)	11,637
Other securities	0		0		0		0		10,164		307		(225		)	10,246
Total	$	2,724	$	229	$	0	$	2,953	$	1,092,648	$	28,049	$	(518	)	$	1,120,179

The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2010.



	Held-to-Maturity									Available-for-Sale
	Amortized		Unrealized		Unrealized			Market		Amortized		Unrealized		Unrealized			Market
(Dollars in thousands)	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. Treasuries	$	13,959	$	390	$	(18	)	$	14,331	$	0	$	0	$	0		$	0
Securities of U.S. government agencies and corporations	0		0		0			0		105,028		957		0			105,985
Mortgage-backed securities	118		4		0			122		775,867		15,513		(2,630		)	788,750
Obligations of state and other political subdivisions	3,329		284		0			3,613		13,708		207		(91		)	13,824
Other securities	0		0		0			0		9,943		614		(6		)	10,551
Total	$	17,406	$	678	$	(18	)	$	18,066	$	904,546	$	17,291	$	(2,727	)	$	919,110

The following is a summary of investment securities by estimated maturity as of September 30, 2011.



	Held-to-Maturity				Available-for-Sale
	Amortized Cost		Market Value		Amortized Cost		Market Value
Due in one year or less	$	292	$	296	$	24,616	$	24,889
Due after one year through five years	1,370		1,442		933,066		955,663
Due after five years through ten years	211		245		82,340		85,706
Due after ten years	851		970		52,626		53,921
Total	$	2,724	$	2,953	$	1,092,648	$	1,120,179

The following tables present the age of gross unrealized losses and associated fair value by investment category.



	September 30, 2011
	Less than 12 Months					12 Months or More					Total
(Dollars in thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Mortgage-backed securities	$	114,524	$	(204	)	$	1,340	$	(63	)	$	115,864	$	(267	)
Obligations of state and other political subdivisions	0		0			2,257		(26		)	2,257		(26		)
Other securities	0		0			2,146		(225		)	2,146		(225		)
Total	$	114,524	$	(204	)	$	5,743	$	(314	)	$	120,267	$	(518	)



	December 31, 2010
	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	$	2,334	$	(18	)	$	0	$	0		$	2,334	$	(18	)
Mortgage-backed securities	280,445		(2,538		)	1,336		(92		)	281,781		(2,630		)
Obligations of state and other political subdivisions	0		0			2,194		(91		)	2,194		(91		)
Other securities	2,217		(6		)	17		0			2,234		(6		)
Total	$	284,996	$	(2,562	)	$	3,547	$	(183	)	$	288,543	$	(2,745	)

Unrealized losses on debt securities are generally due to higher current market yields relative to the yields of the debt securities at their amortized cost. Unrealized losses due to credit risk associated with the underlying collateral of the debt security, if any, are not material. All securities with unrealized losses are reviewed quarterly to determine if any impairment is considered other than temporary, requiring a write-down to fair market 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, as well as payment performance and 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 security issues temporarily impaired prior to maturity or recovery of book value. First Financial had no other than temporary impairment charges for the nine months ended September 30, 2011.

For further detail on the fair value of investment securities, see Note 15 – Fair Value Disclosures.