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EMPLOYEE BENEFIT PLANS
 9 Months Ended
Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]  
EMPLOYEE BENEFIT PLANS
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.

First Financial made no cash contributions to fund the pension plan during the nine months ended September 30, 2014 and does not expect to make cash contributions to the plan through the remainder of the year. First Financial made no cash contributions to fund the pension plan in 2013.  As a result of the plan’s actuarial projections for 2014, First Financial recorded income related to its pension plan of $0.3 million for the third quarter of 2014 and $0.9 million for the nine months ended September 30, 2014.

As a result of lump sum distributions from the pension plan during 2013, First Financial was required to re-measure the plan's assets and liabilities and recognized pension settlement charges of $1.4 million and $5.7 million for the three and nine months ended September 30, 2013, respectively. Consistent with FASB ASC Topic 715, Compensation - Retirement Benefits, pension settlement charges are an acceleration of previously deferred costs that would have been recognized in future periods and are triggered when lump sum distributions exceed an annual accounting threshold for the plan. Associates are eligible to request a lump sum distribution from the Company's pension plan at retirement or upon leaving the Company.

First Financial recorded $19.2 million of pre-tax adjustments to other comprehensive income related to changes in the values of the Company's plan assets and pension obligations for the nine months ended September 30, 2013 as a result of the pension plan re-measurement and pension settlement charges discussed above. Including the pension settlement charges as well as the impact of the plan's updated actuarial projections, First Financial recorded expenses related to its pension plan of $1.1 million and $5.3 million for the three months and nine months ended September 30, 2013, respectively.

The accounting threshold for lump sum distributions from the plan reset on January 1, 2014. However, the Company could incur pension settlement charges again if lump sum distributions exceed the annual accounting threshold in future periods.

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
 
Nine months ended
 
 
September 30,
September 30,
(Dollars in thousands)
 
2014
 
2013
 
2014
 
2013
Service cost
 
$
1,007

 
$
916

 
$
3,089

 
$
2,789

Interest cost
 
551

 
566

 
1,791

 
1,752

Expected return on assets
 
(2,208
)
 
(2,231
)
 
(6,792
)
 
(6,755
)
Amortization of prior service cost
 
(103
)
 
(105
)
 
(309
)
 
(317
)
Net actuarial loss
 
405

 
582

 
1,368

 
2,128

Settlement charge
 
0

 
1,396

 
0

 
5,712

     Net periodic benefit (income) cost
 
$
(348
)
 
$
1,124

 
$
(853
)
 
$
5,309