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 the plan. Plan assets were primarily invested in fixed income and publicly traded equity mutual funds. The pension plan does not directly own any shares of First Financial common stock or any other First Financial security or product.

First Financial made no cash contributions to fund the pension plan during the six months ended June 30, 2017, or the year ended December 31, 2016, and does not expect to make cash contributions to the plan through the remainder of 2017. As a result of the plan’s actuarial projections, First Financial recorded income of $0.3 million and $0.2 million for the quarters ended June 30, 2017 and 2016, respectively. First Financial recorded income of $0.6 million and $0.5 million for the six months ended June 30, 2017 and 2016, respectively.

The following table sets forth information concerning amounts recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan:



	Three months ended						Six months ended
	June 30,						June 30,
(Dollars in thousands)	2017			2016			2017			2016
Service cost	$	1,239		$	1,309		$	2,477		$	2,617
Interest cost	589			581			1,178			1,162
Expected return on assets	(2,481		)	(2,432		)	(4,962		)	(4,863		)
Amortization of prior service cost	(104		)	(104		)	(207		)	(207		)
Net actuarial loss	439			421			877			841
Net periodic benefit (income) cost	$	(318	)	$	(225	)	$	(637	)	$	(450	)