XML 23 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
INVESTMENTS
 3 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS

For the three months ended March 31, 2018, there were no sales of available-for-sale securities. For the three months ended March 31, 2017, proceeds on the sale of $22.2 million of available-for-sale securities resulted in gains of $0.5 million.

The following is a summary of held-to-maturity and available-for-sale investment securities as of March 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

 
$
98

 
$
0

 
$
(2
)
 
$
96

Securities of U.S. government agencies and corporations
 
10,627

 
0

 
(188
)
 
10,439

 
25,689

 
244

 
(193
)
 
25,740

Mortgage-backed securities - residential
 
155,208

 
1,225

 
(2,817
)
 
153,616

 
288,757

 
375

 
(6,689
)
 
282,443

Mortgage-backed securities - commercial
 
251,253

 
228

 
(5,348
)
 
246,133

 
153,770

 
47

 
(2,875
)
 
150,942

Collateralized mortgage obligations
 
135,143

 
86

 
(2,798
)
 
132,431

 
305,496

 
558

 
(4,791
)
 
301,263

Obligations of state and other political subdivisions
 
81,491

 
829

 
(972
)
 
81,348

 
121,813

 
1,307

 
(1,696
)
 
121,424

Asset-backed securities
 
0

 
0

 
0

 
0

 
391,943

 
1,351

 
(782
)
 
392,512

Other securities
 
0

 
0

 
0

 
0

 
83,278

 
2,027

 
(344
)
 
84,961

Total
 
$
633,722

 
$
2,368

 
$
(12,123
)
 
$
623,967

 
$
1,370,844

 
$
5,909

 
$
(17,372
)
 
$
1,359,381


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

 
$
(1
)
 
$
97

Securities of U.S. government agencies and corporations
 
11,168

 
0

 
(76
)
 
11,092

 
15,695

 
220

 
0

 
15,915

Mortgage-backed securities - residential
 
162,093

 
2,042

 
(1,535
)
 
162,600

 
290,793

 
849

 
(2,599
)
 
289,043

Mortgage-backed securities - commercial
 
255,027

 
1,372

 
(3,000
)
 
253,399

 
150,356

 
164

 
(1,417
)
 
149,103

Collateralized mortgage obligations
 
143,545

 
354

 
(1,602
)
 
142,297

 
306,095

 
1,158

 
(1,861
)
 
305,392

Obligations of state and other political subdivisions
 
82,175

 
1,804

 
(266
)
 
83,713

 
124,269

 
2,162

 
(676
)
 
125,755

Asset-backed securities
 
0

 
0

 
0

 
0

 
377,655

 
1,628

 
(306
)
 
378,977

Other securities
 
0

 
0

 
0

 
0

 
83,266

 
2,147

 
(287
)
 
85,126

Total
 
$
654,008

 
$
5,572

 
$
(6,479
)
 
$
653,101

 
$
1,348,227

 
$
8,328

 
$
(7,147
)
 
$
1,349,408



The following table provides a summary of investment securities by contractual maturity as of March 31, 2018, 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
 
$
165

 
$
165

 
$
2,296

 
$
2,292

Due after one year through five years
 
4,277

 
4,279

 
37,023

 
36,960

Due after five years through ten years
 
2,499

 
2,632

 
82,431

 
83,521

Due after ten years
 
85,177

 
84,711

 
109,128

 
109,448

Mortgage-backed securities - residential
 
155,208

 
153,616

 
288,757

 
282,443

Mortgage-backed securities - commercial
 
251,253

 
246,133

 
153,770

 
150,942

Collateralized mortgage obligations
 
135,143

 
132,431

 
305,496

 
301,263

Asset-backed securities
 
0

 
0

 
391,943

 
392,512

Total
 
$
633,722

 
$
623,967

 
$
1,370,844

 
$
1,359,381



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, 2018 or December 31, 2017.

As of March 31, 2018, the Company's investment securities portfolio consisted of 774 securities, of which 359 were in an unrealized loss position. As of December 31, 2017, the Company's investment securities portfolio consisted of 775 securities, of which 237 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, 2018
 
 
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
 
$
96

 
$
(2
)
 
$
0

 
$
0

 
$
96

 
$
(2
)
Securities of U.S. Government agencies and corporations
 
26,347

 
(381
)
 
0

 
0

 
26,347

 
(381
)
Mortgage-backed securities - residential
 
252,396

 
(3,712
)
 
123,671

 
(5,794
)
 
376,067

 
(9,506
)
Mortgage-backed securities - commercial
 
233,201

 
(4,185
)
 
75,822

 
(4,038
)
 
309,023

 
(8,223
)
Collateralized mortgage obligations
 
274,159

 
(3,915
)
 
96,641

 
(3,674
)
 
370,800

 
(7,589
)
Obligations of state and other political subdivisions
 
98,207

 
(1,879
)
 
21,420

 
(789
)
 
119,627

 
(2,668
)
Asset-backed securities
 
89,530

 
(613
)
 
23,113

 
(169
)
 
112,643

 
(782
)
Other securities
 
4,616

 
(29
)
 
7,100

 
(315
)
 
11,716

 
(344
)
Total
 
$
978,552

 
$
(14,716
)
 
$
347,767

 
$
(14,779
)
 
$
1,326,319

 
$
(29,495
)

 
 
December 31, 2017
 
 
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
 
11,092

 
(76
)
 
0

 
0

 
11,092

 
(76
)
Mortgage-backed securities - residential
 
175,183

 
(1,109
)
 
108,782

 
(3,025
)
 
283,965

 
(4,134
)
Mortgage-backed securities - commercial
 
132,818

 
(1,713
)
 
72,139

 
(2,704
)
 
204,957

 
(4,417
)
Collateralized mortgage obligations
 
164,909

 
(1,138
)
 
101,436

 
(2,325
)
 
266,345

 
(3,463
)
Obligations of state and other political subdivisions
 
38,450

 
(507
)
 
21,639

 
(435
)
 
60,089

 
(942
)
Asset-backed securities
 
44,941

 
(200
)
 
24,396

 
(106
)
 
69,337

 
(306
)
Other securities
 
2,605

 
(1
)
 
7,124

 
(286
)
 
9,729

 
(287
)
Total
 
$
570,095

 
$
(4,745
)
 
$
335,516

 
$
(8,881
)
 
$
905,611

 
$
(13,626
)


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