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Subsequent Events
12 Months Ended
Sep. 30, 2011
Subsequent Events [Text Block]

NOTE 19. Subsequent Events


     On July 18, 2011, First Financial announced that it reclassified $155.3 million (book value) of certain nonperforming and performing loans to loans held for sale, effective June 30, 2011, and it was pursuing loan sale alternatives. The loans transferred to the bulk sale pool had an aggregate contractual principal balance of $202.2 million at June 30, 2011, and were written-down to an estimated fair value of $60.3 million at that time. From June 30, 2011 to August 31, 2011 (which was the sale cutoff date), the contractual balance of these loans was reduced by $4.3 million through principal paydowns, loans migrating to OREO, and various other resolutions within the asset pool. The net reduction included nineteen loans totaling $4.4 million, which were added as the result of existing relationships to other assets already in the pool.


     On October 26, 2011, First Financial announced it entered into a definitive agreement to sell certain performing loans and classified assets with an aggregate contractual principal balance of $197.9 million in a single transaction to affiliates of Värde Partners, Inc. The transaction, which was structured as a cash settlement, did not require First Financial to provide financing to facilitate the close. The sale was executed on October 27, 2011 and structured with two consecutive closings. The first closing was comprised of 504 assets with an aggregate contractual principal balance of $194.8 million. The second closing occurred on November 18, 2011 and included eight OREO properties with contractual principal balances totaling $3.1 million. That transaction completed the disposition of the loans transferred to the held for sale loan pool at June 30, 2011. First Financial will record a pre-tax gain on this asset sale transaction of approximately $20 million in the first quarter of fiscal 2012.