DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2012

Summary of Derivative Financial Instruments by Nature of Underlying Asset or Liability

The following table summarizes the derivative financial instruments utilized by First Financial by the nature of the underlying asset or liability:

	Fair Value Hedges
(Dollars in thousands)	March 31, 2012		December 31, 2011
Instruments associated with loans:
Total notional value	$	819,038	$	775,328

Summary of Derivative Financial Instruments and Balances

The following table summarizes the derivative financial instruments utilized by First Financial and their balances:

		March 31, 2012							December 31, 2011
				Estimated Fair Value							Estimated Fair Value
(Dollars in thousands)	Balance Sheet Location	Notional Amount		Gain		Loss			Notional Amount		Gain		Loss
Fair Value Hedges
Pay fixed interest rate swaps with counterparty	Accrued interest and other liabilities	$	17,188	$	0	$	(2,114	)	$	17,456	$	0	$	(2,263	)
Matched interest rate swaps with borrower	Accrued interest and other assets	400,925		23,566		0			378,936		24,566		0
Matched interest rate swaps with counterparty	Accrued interest and other liabilities	400,925		0		(24,491		)	378,936		0		(25,860		)
Total		$	819,038	$	23,566	$	(26,605	)	$	775,328	$	24,566	$	(28,123	)

Derivative Financial Instruments, Average Remaining Maturity and the Weighted-Average Interest Rates being Paid and Received

The following table details the derivative financial instruments, the average remaining maturities and the weighted-average interest rates being paid and received by First Financial at March 31, 2012:

							Weighted-Average Rate
(Dollars in thousands)	Notional Amount		Average Maturity (years)	Fair Value			Receive		Pay
Asset conversion swaps
Pay fixed interest rate swaps with counterparty	$	17,188	4.1	$	(2,114	)	2.20	%	6.73	%
Receive fixed, matched interest rate swaps with borrower	400,925		4.5	23,566			5.58	%	3.02	%
Pay fixed, matched interest rate swaps with counterparty	400,925		4.5	(24,491		)	3.02	%	5.58	%
Total swap portfolio	$	819,038	4.5	$	(3,039	)	4.25	%	4.35	%

Location and Amounts Recognized for Fair Value Hedges

The following table details the location and amounts recognized for fair value hedges:

		Decrease to Interest Income
(Dollars in thousands)		Three Months Ended
Derivatives in fair value hedging relationships	Location of change in fair value derivative	March 31,
		2012			2011
Interest Rate Contracts
Loans	Interest Income - Loans	$	(196	)	$	(235	)
Total		$	(196	)	$	(235	)