For the three months ended March 31, 2026, there were $195.7 million of sales of AFS securities with $4.0 million of gross realized gains and no gross realized losses. For the three months ended March 31, 2025, there were $164.5 million of sales of AFS securities with $0.1 million of gross realized gains and $10.0 million of gross realized losses.

First Financial had six AFS securities with unrealized losses due to credit deterioration at March 31, 2026. These securities totaled $22.5 million, net of $5.6 million unrealized losses. The Company had six AFS securities with unrealized losses due to credit deterioration at December 31, 2025, which totaled $20.9 million, and had unrealized losses of $9.8 million. The Company continues to monitor these securities and believes that the Company will receive the full par value.

Additionally, the Company recognized impairment losses of $5.0 million on AFS securities during the three months ended March 31, 2026. No impairment losses were recognized on AFS securities during the three months ended March 31, 2025. The losses were included in Net gain (loss) on investment securities in the Consolidated Statements of Income. These losses were due to credit deterioration where the Company had determined that it no longer intended to hold the securities until the recovery of their amortized cost bases.


	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	$	10,143	$	0	$	(15)	$	10,128
Securities of U.S. government agencies and corporations	0		0		0		0		82,303		121		(249)		82,175
Mortgage-backed securities - residential	0		0		0		0		2,008,226		3,318		(82,957)		1,928,587
Mortgage-backed securities - commercial	26,927		0		(3,468)		23,459		441,285		598		(16,239)		425,644
Collateralized mortgage obligations	5,846		0		(513)		5,333		1,096,428		1,762		(41,555)		1,056,635
Obligations of state and other political subdivisions	8,358		50		(204)		8,204		728,838		743		(94,675)		634,906
Asset-backed securities	0		0		0		0		669,079		1,148		(15,486)		654,741
Other securities	8,500		0		(123)		8,377		162,336		776		(2,905)		160,207
Total	$	49,631	$	50	$	(4,308)	$	45,373	$	5,198,638	$	8,466	$	(254,081)	$	4,953,023


	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		0		0		0		0
Mortgage-backed securities - residential	0		0		0		0		1,607,916		11,265		(69,767)		1,549,414
Mortgage-backed securities - commercial	27,373		0		(3,392)		23,981		394,129		1,212		(13,741)		381,600
Collateralized mortgage obligations	6,088		0		(499)		5,589		741,819		3,765		(36,347)		709,237
Obligations of state and other political subdivisions	8,334		60		(179)		8,215		706,668		931		(89,509)		618,090
Asset-backed securities	0		0		0		0		568,366		1,817		(13,639)		556,544
Other securities	16,750		0		(201)		16,549		163,078		1,063		(7,189)		156,952
Total	$	58,545	$	60	$	(4,271)	$	54,334	$	4,182,075	$	20,053	$	(230,196)	$	3,971,932

The following table provides a summary of investment securities by contractual maturity as of March 31, 2026, 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	$	1,213	$	1,212	$	34,196	$	34,132
Due after one year through five years	14,290		14,202		95,609		87,628
Due after five years through ten years	0		0		235,436		210,923
Due after ten years	1,355		1,167		618,379		554,733
Mortgage-backed securities - residential	0		0		2,008,226		1,928,587
Mortgage-backed securities - commercial	26,927		23,459		441,285		425,644
Collateralized mortgage obligations	5,846		5,333		1,096,428		1,056,635
Asset-backed securities	0		0		669,079		654,741
Total	$	49,631	$	45,373	$	5,198,638	$	4,953,023

Unrealized gains and losses on AFS debt securities are generally due to fluctuations in current market yields relative to the yields of the securities at their amortized cost. All AFS securities with unrealized losses are reviewed quarterly to determine if any impairment exists, requiring a write-down to fair value. For AFS 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 AFS securities in an unrealized loss position 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. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an ACL is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis.

Other than the previously mentioned securities on which the Company recorded impairment losses, 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 prior to maturity or recovery of the recorded value. Additionally, based on the Company's credit assessment of AFS securities in an unrealized loss position, the Company recorded no reserves for the periods ended March 31, 2026 or December 31, 2025.

As of March 31, 2026, the Company's investment securities portfolio consisted of 874 AFS and HTM securities, of which 673 were in an unrealized loss position. As of December 31, 2025, the Company's investment securities portfolio consisted of 949 AFS and HTM securities, of which 533 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 at March 31, 2026 or December 31, 2025.

Management measures expected credit losses on HTM debt securities on a collective basis by security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company did not record an ACL for these securities as of March 31, 2026 or December 31, 2025.

The following tables provide the fair value and gross unrealized losses of AFS investment securities in an unrealized loss position for which an ACL 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, 2026
	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	$	10,033	$	(10)	$	95	$	(5)	$	10,128	$	(15)
Securities of U.S. Government agencies and corporations	35,470		(249)		0		0		35,470		(249)
Mortgage-backed securities - residential	1,181,376		(15,690)		414,361		(67,267)		1,595,737		(82,957)
Mortgage-backed securities - commercial	189,148		(2,506)		151,568		(13,733)		340,716		(16,239)
Collateralized mortgage obligations	600,352		(5,748)		263,609		(35,807)		863,961		(41,555)
Obligations of state and other political subdivisions	114,099		(2,566)		453,419		(92,109)		567,518		(94,675)
Asset-backed securities	230,177		(1,068)		47,549		(14,418)		277,726		(15,486)
Other securities	27,940		(171)		69,559		(2,734)		97,499		(2,905)
Total	$	2,388,595	$	(28,008)	$	1,400,160	$	(226,073)	$	3,788,755	$	(254,081)


	December 31, 2025
	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	0		0		0		0		0		0
Mortgage-backed securities - residential	277,394		(1,349)		536,694		(68,418)		814,088		(69,767)
Mortgage-backed securities - commercial	39,084		(108)		166,649		(13,633)		205,733		(13,741)
Collateralized mortgage obligations	56,942		(130)		286,606		(36,217)		343,548		(36,347)
Obligations of state and other political subdivisions	71,825		(511)		466,766		(88,998)		538,591		(89,509)
Asset-backed securities	70,967		(48)		54,351		(13,591)		125,318		(13,639)
Other securities	7,321		(54)		76,141		(7,135)		83,462		(7,189)
Total	$	523,533	$	(2,200)	$	1,587,302	$	(227,996)	$	2,110,835	$	(230,196)

The following tables provide the fair value and gross unrecognized losses of HTM investment securities in an unrecognized loss position for which an ACL 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, 2026
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrecognized loss		Fair value		Unrecognized loss		Fair value		Unrecognized 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	0		0		0		0		0		0
Mortgage-backed securities - commercial	0		0		23,459		(3,468)		23,459		(3,468)
Collateralized mortgage obligations	0		0		5,333		(513)		5,333		(513)
Obligations of state and other political subdivisions	3,402		(17)		1,167		(187)		4,569		(204)
Asset-backed securities	0		0		0		0		0		0
Other securities	0		0		8,377		(123)		8,377		(123)
Total	$	3,402	$	(17)	$	38,336	$	(4,291)	$	41,738	$	(4,308)


	December 31, 2025
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrecognized loss		Fair value		Unrecognized loss		Fair value		Unrecognized 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	0		0		0		0		0		0
Mortgage-backed securities - commercial	0		0		23,981		(3,392)		23,981		(3,392)
Collateralized mortgage obligations	0		0		5,589		(499)		5,589		(499)
Obligations of state and other political subdivisions	2,273		(4)		1,217		(175)		3,490		(179)
Asset-backed securities	0		0		0		0		0		0
Other securities	0		0		16,549		(201)		16,549		(201)
Total	$	2,273	$	(4)	$	47,336	$	(4,267)	$	49,609	$	(4,271)