Benefit Plans

12 Months Ended

Sep. 30, 2011

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 15. Benefit Plans

Sharing Thrift Plan

     First Financial offers a 401(k) Saving Plan (the “Plan”) that permits eligible participants to contribute amounts up the limitations prescribed by law. The Plan provides for First Financial to match employee’s contribution up to 5% of the employee’s salary based on the attainment of certain return on equity goals. The Plan, under an annual election made by First Financial, also provides for a safe harbor contribution of up to 4%. In connection with other cost savings and capital preservation initiatives implemented in January 2009, First Financial suspended its match as of the quarter ended March 31, 2009.

     The Plan provides that all employees who have completed a year of service with First Financial are entitled to receive a profit sharing contribution dependent on the profitability of First Financial. Employees become vested in profit sharing contributions made to their accounts over a six-year period or upon their earlier death, disability or retirement at age 65 or over. Employees are able to direct the investment of profit sharing contributions made to their accounts to any of the available investment funds. As a result of the cost savings and capital preservation initiatives implemented in fiscal 2009, First Financial did not fund any profit sharing contributions for the fiscal years ended September 30, 2011 or 2010.

Other Postretirement Benefits

          In the past, First Financial sponsored postretirement benefit plans that provided health care, life insurance and other postretirement benefits to retired employees. The health care plans generally include participant contributions, co-insurance provisions, limitations on the obligation and service-related eligibility requirements. These benefits are paid as they are incurred. As it is a defined contribution plan, it is unfunded. Postretirement benefits for employees hired after January 1, 1989 and those electing early retirement or normal retirement after January 1, 1999, were substantially curtailed.

          The following tables set forth the activity of the benefit plan’s projected benefit obligation and plan assets.

	As of September 30,
(in thousands)	2011			2010
Change in benefit obligation
Benefit obligation at October 1,	$	1,973		$	1,815
Interest cost		84			92
Plan participants’ contribution		104			62
Actuarial loss		473			489
Benefit payments		(270	)		(518	)
less: Medicare D Subsidy Receivable		36			33
Benefit obligation at September 30,	$	2,400		$	1,973
Change in plan assets
Fair value of plan assets at October 1,	$	---		$	---
Employer contributions		166			456
Plan participants’ contributions		104			62
Benefit payments		(270	)		(518	)
Fair value of plan assets at September 30,	$	---		$	---

          The weighted average discount rate used in determining the actuarial present value of the projected benefit obligation was 4.30% and 4.45% for the years ended September 30, 2011 and 2010, respectively.

Components of Net Periodic Benefit Expense

          The actuarially estimated net benefit cost includes the following components.

	Years Ended September 30,
(in thousands)	2011		2010		2009
Service cost - benefits earned during the year	$	66	$	26	$	7
Interest cost on projected benefit obligation		84		92		125
Net amortization and deferral of loss		79		79		79
Net pension cost included in employee benefit expense	$	229	$	197	$	211

     First Financial revises the rates applied in the determination of the actuarial present value of the projected benefit obligation to reflect the anticipated performance of the plan and changes in compensation levels.

Benefit Payments

     Presented below are the estimated future benefit payments as of September 30, 2011:

(in thousands)	Benefit Payments
Fiscal Year
2012	$	216
2013		222
2014		224
2015		218
2016		203
2017-2021		926
Total	$	2,009