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INVESTMENTS
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS

For the three months ended March 31, 2020, there were sales of $29.9 million of AFS securities with no gross realized gains and $0.1 million gross realized losses. For the three months ended March 31, 2019, there were no sales of AFS securities and therefore no associated gains or losses. In conjunction with the adoption of ASU 2017-12 in the first quarter of 2019, First Financial reclassified $268.7 million of HTM securities to AFS resulting in a $0.2 million realized loss recorded in the Consolidated Statement of Income.

The following is a summary of HTM and AFS investment securities as of March 31, 2020:
  
 
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

 
$
5

 
$
0

 
$
104

Securities of U.S. government agencies and corporations
 
0

 
0

 
0

 
0

 
116

 
2

 
0

 
118

Mortgage-backed securities - residential
 
19,832

 
1,046

 
0

 
20,878

 
419,423

 
19,215

 
(219
)
 
438,419

Mortgage-backed securities - commercial
 
97,073

 
1,671

 
(375
)
 
98,369

 
506,343

 
7,034

 
(9,082
)
 
504,295

Collateralized mortgage obligations
 
9,043

 
149

 
0

 
9,192

 
745,649

 
28,845

 
(2,479
)
 
772,015

Obligations of state and other political subdivisions
 
10,796

 
830

 
0

 
11,626

 
723,470

 
30,576

 
(152
)
 
753,894

Asset-backed securities
 
0

 
0

 
0

 
0

 
382,415

 
225

 
(18,841
)
 
363,799

Other securities
 
0

 
0

 
0

 
0

 
79,840

 
90

 
(3,886
)
 
76,044

Total
 
$
136,744

 
$
3,696

 
$
(375
)
 
$
140,065

 
$
2,857,355

 
$
85,992

 
$
(34,659
)
 
$
2,908,688


The following is a summary of HTM and AFS investment securities as of December 31, 2019:
  
 
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

 
$
1

 
$
0

 
$
100

Securities of U.S. government agencies and corporations
 
0

 
0

 
0

 
0

 
156

 
2

 
0

 
158

Mortgage-backed securities - residential
 
20,818

 
122

 
(174
)
 
20,766

 
421,945

 
9,709

 
(99
)
 
431,555

Mortgage-backed securities - commercial
 
101,267

 
571

 
(1,225
)
 
100,613

 
474,174

 
4,988

 
(2,644
)
 
476,518

Collateralized mortgage obligations
 
9,763

 
0

 
(108
)
 
9,655

 
769,076

 
16,753

 
(385
)
 
785,444

Obligations of state and other political subdivisions
 
11,014

 
804

 
(31
)
 
11,787

 
652,986

 
23,729

 
(462
)
 
676,253

Asset-backed securities
 
0

 
0

 
0

 
0

 
400,081

 
1,414

 
(1,064
)
 
400,431

Other securities
 
0

 
0

 
0

 
0

 
79,781

 
1,959

 
(115
)
 
81,625

Total
 
$
142,862

 
$
1,497

 
$
(1,538
)
 
$
142,821

 
$
2,798,298

 
$
58,555

 
$
(4,769
)
 
$
2,852,084



The following table provides a summary of investment securities by contractual maturity as of March 31, 2020, 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

 
$
5,138

 
$
5,157

Due after one year through five years
 
0

 
0

 
55,648

 
56,434

Due after five years through ten years
 
4,797

 
5,476

 
148,614

 
147,686

Due after ten years
 
5,999

 
6,150

 
594,125

 
620,883

Mortgage-backed securities - residential
 
19,832

 
20,878

 
419,423

 
438,419

Mortgage-backed securities - commercial
 
97,073

 
98,369

 
506,343

 
504,295

Collateralized mortgage obligations
 
9,043

 
9,192

 
745,649

 
772,015

Asset-backed securities
 
0

 
0

 
382,415

 
363,799

Total
 
$
136,744

 
$
140,065

 
$
2,857,355

 
$
2,908,688



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. For securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security.

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, 2020 or December 31, 2019.

As of March 31, 2020, the Company's investment securities portfolio consisted of 1,276 securities, of which 194 were in an unrealized loss position. As of December 31, 2019, the Company's investment securities portfolio consisted of 1,273 securities, of which 140 were in an unrealized loss position.

Primarily all of First Financial’s HTM debt securities are issued by U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. The remainder of the Company's HTM securities are non-agency collateralized mortgage obligations and obligations of state and other political subdivisions which currently carry ratings no lower than A+. There were no HTM securities on nonaccrual status or past due as of March 31, 2020. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2020.

The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:
 
 
March 31, 2020
 
 
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

 
$
0

 
$
0

 
$
0

 
$
0

Securities of U.S. Government agencies and corporations
 
0

 
0

 
0

 
0

 
0

 
0

Mortgage-backed securities - residential
 
37,185

 
(219
)
 
0

 
0

 
37,185

 
(219
)
Mortgage-backed securities - commercial
 
188,990

 
(4,567
)
 
62,083

 
(4,890
)
 
251,073

 
(9,457
)
Collateralized mortgage obligations
 
115,697

 
(1,847
)
 
8,267

 
(632
)
 
123,964

 
(2,479
)
Obligations of state and other political subdivisions
 
33,083

 
(148
)
 
1,681

 
(4
)
 
34,764

 
(152
)
Asset-backed securities
 
279,980

 
(16,048
)
 
59,852

 
(2,793
)
 
339,832

 
(18,841
)
Other securities
 
46,746

 
(3,081
)
 
4,010

 
(805
)
 
50,756

 
(3,886
)
Total
 
$
701,681

 
$
(25,910
)
 
$
135,893

 
$
(9,124
)
 
$
837,574

 
$
(35,034
)

 
 
December 31, 2019
 
 
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
 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Securities of U.S. Government agencies and corporations
 
0

 
0

 
0

 
0

 
0

 
0

Mortgage-backed securities - residential
 
40,190

 
(209
)
 
11,063

 
(64
)
 
51,253

 
(273
)
Mortgage-backed securities - commercial
 
111,658

 
(298
)
 
104,069

 
(3,571
)
 
215,727

 
(3,869
)
Collateralized mortgage obligations
 
85,248

 
(297
)
 
30,628

 
(196
)
 
115,876

 
(493
)
Obligations of state and other political subdivisions
 
118,623

 
(457
)
 
7,950

 
(36
)
 
126,573

 
(493
)
Asset-backed securities
 
125,889

 
(553
)
 
54,963

 
(511
)
 
180,852

 
(1,064
)
Other securities
 
0

 
0

 
5,649

 
(115
)
 
5,649

 
(115
)
Total
 
$
481,608

 
$
(1,814
)
 
$
214,322

 
$
(4,493
)
 
$
695,930

 
$
(6,307
)


For further detail on the fair value of investment securities, see Note 16 – Fair Value Disclosures.