Investment Securities

The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2015:



	Held-to-maturity									Available-for-sale
(Dollars in thousands)	Amortized cost		Unrealized gain		Unrealized loss			Market value		Amortized cost		Unrealized gain		Unrealized loss			Market value
U.S. Treasuries	$	0	$	0	$	0		$	0	$	98	$	0	$	(1	)	$	97
Securities of U.S. government agencies and corporations	15,486		121		0			15,607		8,183		157		0			8,340
Mortgage-backed securities	678,318		7,452		(1,999		)	683,771		775,285		2,708		(12,926		)	765,067
Obligations of state and other political subdivisions	27,646		338		(99		)	27,885		73,815		2,491		(671		)	75,635
Asset-backed securities	0		0		0			0		236,411		35		(3,445		)	233,001
Other securities	4,809		0		(121		)	4,688		109,273		687		(1,458		)	108,502
Total	$	726,259	$	7,911	$	(2,219	)	$	731,951	$	1,203,065	$	6,078	$	(18,501	)	$	1,190,642

The following is a summary of held-to-maturity and available-for-sale investment securities as of December 31, 2014:



	Held-to-maturity									Available-for-sale
	Amortized		Unrealized		Unrealized			Market		Amortized		Unrealized		Unrealized			Market
(Dollars in thousands)	cost		gain		loss			value		cost		gain		loss			value
U.S. Treasuries	$	0	$	0	$	0		$	0	$	97	$	0	$	0		$	97
Securities of U.S. government agencies and corporations	17,570		24		(23		)	17,571		11,814		67		(1		)	11,880
Mortgage-backed securities	801,465		7,813		(2,064		)	807,214		611,497		4,462		(13,211		)	602,748
Obligations of state and other political subdivisions	44,164		1,275		(193		)	45,246		73,649		883		(947		)	73,585
Asset-backed securities	0		0		0			0		74,784		155		(103		)	74,836
Other securities	4,797		0		(79		)	4,718		77,663		1,193		(1,534		)	77,322
Total	$	867,996	$	9,112	$	(2,359	)	$	874,749	$	849,504	$	6,760	$	(15,796	)	$	840,468

During the year ended December 31, 2015, First Financial sold available-for-sale securities with a fair value of $68.7 million at the date of sale and recorded a $1.5 million net pre-tax gain. The net investment gain after taxes was $1.0 million for the year ended December 31, 2015.

During the year ended December 31, 2014, First Financial sold available-for-sale securities with a fair value of $166.3 million at the date of sale and recorded a $0.1 million net pre-tax gain. The net investment gain after taxes was $44 thousand for the year ended December 31, 2014.

During the year ended December 31, 2013, First Financial sold available-for-sale securities with a fair value of $91.0 million at the date of sale and recorded a $1.7 million net pre-tax gain. The net investment gain after taxes was $1.1 million for the year ended December 31, 2013.

The carrying value of investment securities pledged as collateral to secure public deposits, repurchase agreements and for other purposes as required by law totaled $1.0 billion at December 31, 2015 and $1.1 billion at December 31, 2014, respectively.

The following table provides a summary of investment securities by estimated weighted average life as of December 31, 2015. Estimated lives on certain investment securities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties:



	Held-to-maturity				Available-for-sale
(Dollars in thousands)	Amortized cost		Market value		Amortized cost		Market value
Due in one year or less	$	4,061	$	4,148	$	21,724	$	21,652
Due after one year through five years	536,660		540,266		748,300		740,460
Due after five years through ten years	185,538		187,537		393,652		389,001
Due after ten years	0		0		39,389		39,529
Total	$	726,259	$	731,951	$	1,203,065	$	1,190,642

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 unrealized loss position:



	December 31, 2015
	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	$	97	$	0		$	0	$	0		$	97	$	0
Mortgage-backed securities	500,768		(5,363		)	246,523		(9,563		)	747,291		(14,926		)
Obligations of state and other political subdivisions	972		(6		)	29,287		(764		)	30,259		(770		)
Asset-backed securities	189,066		(3,042		)	17,144		(403		)	206,210		(3,445		)
Other securities	35,656		(651		)	24,716		(928		)	60,372		(1,579		)
Total	$	726,559	$	(9,062	)	$	317,670	$	(11,658	)	$	1,044,229	$	(20,720	)



	December 31, 2014
	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	value		loss			value		loss			value		loss
Securities of U.S. government agencies and corporations	$	493	$	(1	)	$	97	$	0		$	590	$	(1	)
Mortgage-backed securities	119,641		(420		)	428,486		(13,780		)	548,127		(14,200		)
Obligations of state and other political subdivisions	12,746		(126		)	37,516		(1,014		)	50,262		(1,140		)
Asset-backed securities	32,045		(103		)	0		0			32,045		(103		)
Other securities	12,831		(317		)	30,005		(1,296		)	42,836		(1,613		)
Total	$	177,756	$	(967	)	$	496,104	$	(16,090	)	$	673,860	$	(17,057	)

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 December 31, 2015 or 2014.

For further detail on the fair value of investment securities, see Note 19 – Fair Value Disclosures.