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INVESTMENTS
 9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS

For the three months ended September 30, 2018, proceeds on the sale of $43.3 million of AFS securities resulted in gains of $0.3 million and losses of $0.4 million. For the three months ended September 30, 2017, proceeds on the sale of $53.9 million of AFS securities resulted in gains of $0.4 million and losses of $0.1 million.

For the nine months ended September 30, 2018, proceeds on the sale of $259.5 million of AFS securities resulted in gains of $0.3 million and losses of $0.5 million. For the nine months ended September 30, 2017, proceeds on the sale of $179.6 million of AFS securities resulted in gains of $1.8 million and losses of $0.2 million. In addition to the sale of certain securities, First Financial reclassified $367.9 million of HTM securities to AFS to align with post-merger investment strategies during the second quarter 2018.

The following is a summary of HTM and AFS investment securities as of September 30, 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

 
$
(4
)
 
$
95

Securities of U.S. government agencies and corporations
 
0

 
0

 
0

 
0

 
33,438

 
7

 
(600
)
 
32,845

Mortgage-backed securities - residential
 
26,603

 
0

 
(1,615
)
 
24,988

 
581,657

 
551

 
(14,262
)
 
567,946

Mortgage-backed securities - commercial
 
150,223

 
0

 
(6,378
)
 
143,845

 
362,874

 
118

 
(5,646
)
 
357,346

Collateralized mortgage obligations
 
13,182

 
0

 
(727
)
 
12,455

 
864,824

 
940

 
(15,436
)
 
850,328

Obligations of state and other political subdivisions
 
244,361

 
275

 
(3,286
)
 
241,350

 
247,206

 
1,533

 
(2,626
)
 
246,113

Asset-backed securities
 
0

 
0

 
0

 
0

 
490,685

 
582

 
(1,499
)
 
489,768

Other securities
 
0

 
0

 
0

 
0

 
81,546

 
1,039

 
(300
)
 
82,285

Total
 
$
434,369

 
$
275

 
$
(12,006
)
 
$
422,638

 
$
2,662,329

 
$
4,770

 
$
(40,373
)
 
$
2,626,726


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 September 30, 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
 
$
0

 
$
0

 
$
3,932

 
$
3,922

Due after one year through five years
 
275

 
277

 
72,831

 
72,633

Due after five years through ten years
 
18,337

 
18,274

 
138,584

 
139,591

Due after ten years
 
225,749

 
222,799

 
146,942

 
145,192

Mortgage-backed securities - residential
 
26,603

 
24,988

 
581,657

 
567,946

Mortgage-backed securities - commercial
 
150,223

 
143,845

 
362,874

 
357,346

Collateralized mortgage obligations
 
13,182

 
12,455

 
864,824

 
850,328

Asset-backed securities
 
0

 
0

 
490,685

 
489,768

Total
 
$
434,369

 
$
422,638

 
$
2,662,329

 
$
2,626,726



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, 2018 or December 31, 2017.

As of September 30, 2018, the Company's investment securities portfolio consisted of 1,414 securities, of which 909 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:
 
 
September 30, 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
 
$
0

 
$
0

 
$
95

 
$
(4
)
 
$
95

 
$
(4
)
Securities of U.S. Government agencies and corporations
 
19,546

 
(411
)
 
5,332

 
(189
)
 
24,878

 
(600
)
Mortgage-backed securities - residential
 
431,332

 
(8,695
)
 
141,519

 
(7,182
)
 
572,851

 
(15,877
)
Mortgage-backed securities - commercial
 
281,842

 
(3,637
)
 
151,185

 
(8,387
)
 
433,027

 
(12,024
)
Collateralized mortgage obligations
 
658,749

 
(10,407
)
 
133,153

 
(5,756
)
 
791,902

 
(16,163
)
Obligations of state and other political subdivisions
 
304,298

 
(3,976
)
 
37,683

 
(1,936
)
 
341,981

 
(5,912
)
Asset-backed securities
 
206,708

 
(1,125
)
 
20,776

 
(374
)
 
227,484

 
(1,499
)
Other securities
 
17,901

 
(192
)
 
4,678

 
(108
)
 
22,579

 
(300
)
Total
 
$
1,920,376

 
$
(28,443
)
 
$
494,421

 
$
(23,936
)
 
$
2,414,797

 
$
(52,379
)

 
 
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.