STOCK BASED COMPENSATION:

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION:

On February 5, 2011, the Corporation's Board of Directors adopted and approved the First Financial Corporation 2011 Omnibus Equity Incentive Plan (the "2011 Stock Incentive Plan") effective upon the approval of the Plan by the Company's shareholders, which occurred on April 20, 2011 at the Corporation’s annual meeting of shareholders. The 2011 Stock Incentive Plan provides for the grant of non qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and incentive awards. An aggregate of 700,000 shares of common stock are reserved for issuance under the 2011 Stock Incentive Plan. Shares issuable under the 2011 Stock Incentive Plan may be authorized and unissued shares of common stock or treasury shares.

During the first quarter of 2014 and 2013, the Compensation Committee of the Board of Directors of the Company granted restricted stock awards to certain executive officers pursuant to the Corporation's annual performance-based stock incentive bonus plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The value of the awards was determined by dividing the award amount by the closing price of a share of Company common stock on the grant dates. The restricted stock awards vest as follows — 33% on the first anniversary, 33% on the second anniversary and the remaining 34% on the third anniversary of the earned date. The Corporation has the right retain shares to satisfy any withholding tax obligation. A total of 91,881 shares of restricted common stock of the Company were granted under the 2011 Stock Incentive Plan. A total of 608,119 remain to be granted under this plan.

Restricted Stock

Restricted stock awards require certain service-based or performance requirements and have a vesting period of 3 years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of issue. Compensation related to the plan was $1.02 million, $733 thousand and $487 thousand in 2014, 2013 and 2012, respectively.

			2014			2013
	Number		Weighted Average Grant Date	Number		Weighted Average Grant Date
(shares in thousands)	Outstanding		Fair Value	Outstanding		Fair Value
Nonvested balance at January 1,	30,496		33.49	26,431		36.88
Granted during the year	22,019		32.17	30,219		30.55
Vested during the year	(30,431	)	33.52	(21,439	)	34.21
Forfeited during the year	—		—	(4,715	)	36.88
Nonvested balance at December 31,	22,084		31.63	30,496		33.49

As of December 31, 2014 and 2013, there was $698 thousand and $1.2 million, respectively of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of the shares vested during the years ended December 31, 2014 and 2013 was $1.1 million and $784 thousand, respectively.