DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2011

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)	June 30, 2011		Deember 31, 2010
Instruments associated with loans:
Total notional value	$	703,286	$	578,959

Summary of Derivative Financial Instruments and Balances

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

		June 30, 2011							December 31, 2010
				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	$	20,310	$	0	$	(2,108	)	$	21,301	$	0	$	(2,302	)
Matched interest rate swaps with borrower	Accrued interest and other assets		341,488		16,758		(29	)		278,829		14,843		(131	)
Matched interest rate swaps with counterparty	Accrued interest and other liabilities		341,488		29		(17,521	)		278,829		131		(15,502	)
Total		$	703,286	$	16,787	$	(19,658	)	$	578,959	$	14,974	$	(17,935	)

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 June 30, 2011:

								Weighted-Average Rate
(Dollars in thousands)	Notional Value		Average Maturity (years)		Fair Value			Receive			Pay
Asset conversion swaps
Pay fixed interest rate swaps with counterparty	$	20,310		4.4	$	(2,108	)		2.23	%		6.79	%
Receive fixed, matched interest rate swaps with borrower		341,488		4.4		16,729			5.87	%		2.93	%
Pay fixed, matched interest rate swaps with counterparty		341,488		4.4		(17,492	)		2.93	%		5.87	%
Total asset conversion swaps	$	703,286		4.4	$	(2,871	)		4.34	%		4.47	%
Total swap portfolio	$	703,286		4.4	$	(2,871	)		4.34	%		4.47	%

Location and Amounts Recognized for Fair Value Hedges

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

		Increase (decrease) to Interest Income
(Dollars in thousands)		Three Months Ended						Six Months Ended
Derivatives in fair value hedging relationships	Location of change in fair value derivative	June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Interest Rate Contracts
Loans	Interest Income - Loans	$	(236	)	$	(251	)	$	(471	)	$	(511	)
Total		$	(236	)	$	(251	)	$	(471	)	$	(511	)

Gains or Losses on Cash Flow Hedges

	Amount of gain or (loss) recognized in OCI on derivatives (effective portion)							Amount of gain or (loss) reclassified from accumulated OCI into earnings (effective portion)
(Dollars in thousands)	3 months ended			6 months ended			Location of gain or (loss) reclassified from accumulated OCI into	3 months ended			6 months ended
Derivatives in cash flow hedging relationships	June 30, 2010						earnings (effective portion)	June 30, 2010
Interest Rate Contracts
Other long-term debt	$	(796	)	$	(999	)	Interest Expense - Other long-term debt	$	(144	)	$	(286	)
Total	$	(796	)	$	(999	)	Total	$	(144	)	$	(286	)