EMPLOYEE BENEFIT PLANS

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 14:  EMPLOYEE BENEFIT PLANS

First Financial sponsors a non-contributory defined benefit pension plan covering substantially all employees and uses a December 31 measurement date for its defined benefit pension plan.

First Financial made cash contributions totaling $60.0 million to fund the pension plan in 2010.  First Financial does not expect to make a cash contribution to its pension plan in 2011.  As a result of the plan’s funding status and related actuarial projections for 2011, First Financial recorded income in the first nine months of 2011 of $1.0 million, compared to expense of $1.5 million for the first nine months of 2010. Likewise, First Financial recorded income in the third quarter of 2011 of $0.3 million compared to expense of $0.6 million for the same period in 2010.

The following table sets forth information concerning amounts recognized in First Financial’s Consolidated Balance Sheets and Consolidated Statements of Income.

	Three months ended						Nine months ended
	September 30,						September 30,
(Dollars in thousands)	2011			2010			2011			2010
Service cost	$	825		$	743		$	2,475		$	1,943
Interest cost	675			633			2,025			2,033
Expected return on assets	(2,237		)	(1,199		)	(6,787		)	(3,699		)
Amortization of prior service cost	(100		)	(117		)	(300		)	(317		)
Recognized net actuarial loss	525			498			1,575			1,548
Net periodic benefit (income) cost	$	(312	)	$	558		$	(1,012	)	$	1,508

Amounts recognized in accumulated other comprehensive income (loss):

	Three months ended						Nine months ended
	September 30,						September 30,
(Dollars in thousands)	2011			2010			2011			2010
Net actuarial loss	$	525		$	498		$	1,575		$	1,548
Net prior service credit	(100		)	(117		)	(300		)	(317		)
Deferred tax (liabilities) assets	(160		)	(141		)	(481		)	(167		)
Net amount recognized	$	265		$	240		$	794		$	1,064