Share-Based Payment Arrangements

9 Months Ended

Jun. 30, 2011

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

NOTE 9. Share-Based Payment Arrangements

          First Financial has two share-based compensation plans authorizing the granting of qualified and nonqualified stock options, restricted stock awards, and stock appreciation rights to employees and non-employee directors as well as performance awards to non-employee directors. As of June 30, 2011, aggregate shares available for future issuance under the current shareholder approved plans may not exceed 1,224,762. This total includes 273,941 shares still outstanding from earlier adopted plans from which no new grants may be issued. At June 30, 2011, First Financial had 455,897 shares related to option and stock appreciation rights and 225,000 shares related to restricted stock awards available for grant.

          Stock options currently granted under the plans generally expire five years from the date of grant. Restrictions on non-vested stock generally lapse in three annual installments beginning on the first anniversary of the grant date. Forfeited and expired options become available for future grants.

          Compensation expense for stock options is recognized in salaries and employee benefits in the Consolidated Statements of Operations based on the fair value at the date of grant and is recognized on a straight line basis over the requisite service period of the awards. For the three and nine months ended June 30, 2011, First Financial recorded a net share-based compensation expense of $185 thousand and $288 thousand, respectively, as compared with an expense of $185 thousand and $288 thousand for the same periods of the prior fiscal year. First Financial recognized an income tax benefit of approximately $100 thousand for the nine months ended June 30, 2011 and 2010, respectively, related to share-based compensation. For all other periods presented the tax benefit was less than $100 thousand.

          A summary of stock option activity is presented below.

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (000)
Outstanding at September 30, 2010		720,851		$	24.63
Granted		—			—
Exercised		—			—
Forfeited or expired		(176,986	)		25.71
Outstanding at June 30, 2011		543,865		$	24.27		2.1	$	1
Exercisable at June 30, 2011		442,095		$	26.10		1.9	$	—

          As of June 30, 2011, there was $395 thousand of total unrecognized compensation cost related to non-vested share-based compensation arrangements (share options) granted under the plans.