ACQUISITIONS AND FDIC INDEMNIFICATION ASSET:

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

ACQUISITIONS AND FDIC INDEMNIFICATION ASSET

ACQUISITIONS, DIVESTITURES AND FDIC INDEMNIFICATION ASSET:

The Bank is party to a loss sharing agreement with the Federal Deposit Insurance Corporation (“FDIC”) as a result of a 2009 acquisition. Under the loss-sharing agreement (“LSA”), the Bank will share in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $29 million, the FDIC agreed to reimburse the Bank for 80% of the losses. On losses exceeding $29 million, the FDIC agreed to reimburse the Bank for 95% of the losses. The loss-sharing agreement is subject to following servicing procedures as specified in the agreement with the FDIC. Loans acquired that are subject to the loss-sharing agreement with the FDIC are referred to as covered loans for disclosure purposes. Since the acquisition date the Bank has been reimbursed $24.3 million for losses and carrying expenses. In 2014 the non-single family (NSF) loss period ended eliminating future loss reimbursements only to the extent of recoveries received. There is no estimate for the loans subject to the loss-sharing agreement identified in the allowance for loan loss evaluation as future potential losses at December 31, 2015. Loans covered by the loss share agreement excluding AS 310-30 loans at December 31, 2015 and 2014 totaled $6.5 million and $7.3 million, respectively.

FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, applies to a loan with evidence of deterioration of credit quality since origination, acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. FASB ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition. The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at December 31, 2015 and 2014, are shown in the following tables:

							2015
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance	$	4,803		$	1,571		$	6,374
Discount accretion	—			—			—
Disposals	(681		)	(91		)	(772		)
ASC 310-30 Loans	$	4,122		$	1,480		$	5,602

							2014
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance	$	7,676		$	2,409		$	10,085
Discount accretion	—			—			—
Disposals	(2,873		)	(838		)	(3,711		)
ASC 310-30 Loans	$	4,803		$	1,571		$	6,374

In February 2016, the Board of First Financial Corporation approved a plan to market the Corporation's insurance subsidiary, Forrest Sherer, Inc. (FSI) for sale. Management has engaged a third party to market FSI and based on market analysis, no impairment is indicated. The Corporation has entered into an exclusivity agreement with a possible third party buyer, subject to due diligence and negotiating a definitive agreement. FSI has $13.0 million in total assets and total equity of $10.0 million at December 31, 2015. FSI has total revenue of $7.6 million, $8.3 million and$8.2 million in 2015, 2014 and 2013, respectively. The net income was $168 thousand, $554 thousand and $592 thousand for 2015, 2014 and 2013, respectively.