INVESTMENTS

For the three months ending June 30, 2017, proceeds on the sale of $103.4 million of available-for-sale securities resulted in gains of $1.0 million and losses of $0.1 million. For the comparable quarter in 2016, proceeds on the sale of $64.8 million of available-for-sale securities resulted in gains of $24 thousand and losses of $0.2 million.

For the six months ended June 30, 2017, proceeds on the sale of $125.6 million of available-for-sale securities resulted in gains of $1.5 million and losses of $0.1 million. For the six months ended June 30, 2016, proceeds on the sale of $107.5 million of available-for-sale securities resulted in gains of $0.3 million and $0.5 million of losses.

The following is a summary of held-to-maturity and available-for-sale investment securities as of June 30, 2017:



	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	$	98	$	0	$	0		$	98
Securities of U.S. government agencies and corporations	12,130		28		(17		)	12,141		16,967		159		0			17,126
Mortgage-backed securities - residential	181,553		1,996		(1,338		)	182,211		262,052		1,140		(2,019		)	261,173
Mortgage-backed securities - commercial	261,739		3,156		(1,912		)	262,983		157,138		682		(412		)	157,408
Collateralized mortgage obligations	165,625		1,138		(1,083		)	165,680		324,712		1,289		(1,609		)	324,392
Obligations of state and other political subdivisions	75,222		884		(399		)	75,707		122,511		2,206		(889		)	123,828
Asset-backed securities	0		0		0			0		327,564		1,717		(504		)	328,777
Other securities	0		0		0			0		84,335		1,748		(307		)	85,776
Total	$	696,269	$	7,202	$	(4,749	)	$	698,722	$	1,295,377	$	8,941	$	(5,740	)	$	1,298,578

The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2016:



	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	$	98	$	0	$	(1	)	$	97
Securities of U.S. government agencies and corporations	13,011		0		(110		)	12,901		7,056		0		(40		)	7,016
Mortgage-backed securities - residential	205,522		1,740		(1,166		)	206,096		184,960		1,175		(2,740		)	183,395
Mortgage-backed securities - commercial	278,728		3,254		(1,817		)	280,165		154,239		188		(826		)	153,601
Collateralized mortgage obligations	195,408		1,125		(1,476		)	195,057		232,701		634		(2,321		)	231,014
Obligations of state and other political subdivisions	70,585		117		(1,346		)	69,356		96,934		1,461		(1,514		)	96,881
Asset-backed securities	0		0		0			0		322,708		517		(2,013		)	321,212
Other securities	0		0		0			0		46,641		741		(728		)	46,654
Total	$	763,254	$	6,236	$	(5,915	)	$	763,575	$	1,045,337	$	4,716	$	(10,183	)	$	1,039,870

The following table provides a summary of investment securities by contractual maturity as of June 30, 2017, 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	$	170	$	170	$	2,236	$	2,238
Due after one year through five years	3,657		3,660		25,504		25,743
Due after five years through ten years	2,691		2,790		73,547		75,012
Due after ten years	80,834		81,228		122,624		123,835
Mortgage-backed securities - residential	181,553		182,211		262,052		261,173
Mortgage-backed securities - commercial	261,739		262,983		157,138		157,408
Collateralized mortgage obligations	165,625		165,680		324,712		324,392
Asset-backed securities	0		0		327,564		328,777
Total	$	696,269	$	698,722	$	1,295,377	$	1,298,578

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 June 30, 2017 or December 31, 2016.

As of June 30, 2017, the Company's investment securities portfolio consisted of 761 securities, of which 197 were in an unrealized loss position. As of December 31, 2016, the Company's investment securities portfolio consisted of 706 securities, of which 255 securities 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:



	June 30, 2017
	Less than 12 months					12 months or more					Total
(Dollars in thousands)	Fair value		Unrealized loss			Fair value		Unrealized loss			Fair value		Unrealized loss
Securities of U.S. Government agencies and corporations	$	6,281	$	(17	)	$	0	$	0		$	6,281	$	(17	)
Mortgage-backed securities - residential	201,854		(3,077		)	9,021		(280		)	210,875		(3,357		)
Mortgage-backed securities - commercial	94,052		(1,059		)	60,816		(1,265		)	154,868		(2,324		)
Collateralized mortgage obligations	193,840		(1,454		)	45,729		(1,238		)	239,569		(2,692		)
Obligations of state and other political subdivisions	79,823		(1,006		)	14,664		(282		)	94,487		(1,288		)
Asset-backed securities	14,147		(89		)	30,621		(415		)	44,768		(504		)
Other securities	10,680		(134		)	2,472		(173		)	13,152		(307		)
Total	$	600,677	$	(6,836	)	$	163,323	$	(3,653	)	$	764,000	$	(10,489	)



	December 31, 2016
	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	$	97	$	(1	)	$	0	$	0		$	97	$	(1	)
Securities of U.S. Government agencies and corporations	19,917		(150		)	0		0			19,917		(150		)
Mortgage-backed securities - residential	180,654		(3,621		)	9,890		(285		)	190,544		(3,906		)
Mortgage-backed securities - commercial	123,122		(1,200		)	65,007		(1,443		)	188,129		(2,643		)
Collateralized mortgage obligations	201,305		(2,882		)	42,314		(915		)	243,619		(3,797		)
Obligations of state and other political subdivisions	94,632		(2,710		)	12,023		(150		)	106,655		(2,860		)
Asset-backed securities	116,057		(764		)	92,629		(1,249		)	208,686		(2,013		)
Other securities	7,746		(237		)	21,357		(491		)	29,103		(728		)
Total	$	743,530	$	(11,565	)	$	243,220	$	(4,533	)	$	986,750	$	(16,098	)

For further detail on the fair value of investment securities, see Note 14 – Fair Value Disclosures.