Investment Securities (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Investment securities Reconciliation [Table Text Block]

The following table presents amortized cost, gross unrealized gains and losses and the estimated fair value of securities available for sale, securities held to maturity and nonmarketable securities.

	As of March 31, 2013								As of December 31, 2012
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available for sale
Obligations of US Government agencies and corporations	$	1,227	$	17	$	---	$	1,244	$	1,260	$	18	$	---	$	1,278
State and municipal obligations		13,378		35		150		13,263		13,460		84		61		13,483
Collateralized debt obligations		6,106		76		2,678		3,504		6,191		156		3,015		3,332
Mortgage-backed securities		143,543		1,956		191		145,308		72,527		1,928		151		74,304
Collateralized mortgage obligations		145,159		1,687		2,339		144,507		157,534		1,249		3,900		154,883
Other securities		5,656		1,281		166		6,771		5,609		1,089		180		6,518
Total securities available for sale	$	315,069	$	5,052	$	5,524	$	314,597	$	256,581	$	4,524	$	7,307	$	253,798
Securities held to maturity
State and municipal obligations	$	14,369	$	2,073	$	---	$	16,442	$	15,055	$	2,312	$	---	$	17,367
Certificates of deposit		500		---		---		500		500		---		---		500
Total securities held to maturity	$	14,869	$	2,073	$	---	$	16,942	$	15,555	$	2,312	$	---	$	17,867
Nonmarketable securities
Federal Home Loan Bank stock	$	14,674	$	---	$	---	$	14,674	$	16,343	$	---	$	---	$	16,343
Federal Reserve Bank stock		4,571		---		---		4,571		4,571		---		---		4,571
Total nonmarketable securities	$	19,245	$	---	$	---	$	19,245	$	20,914	$	---	$	---	$	20,914

Available-for-sale Securities [Table Text Block]

The following table provides the names of issuers for whom First Financial has investment securities with a fair value totaling in excess of 10% of shareholders’ equity and the fair value and amortized cost of these investments. Securities issued by Bank of America Corp. and its subsidiaries are, for the most part, collateralized mortgage obligations (“CMOs”) and not backed by Bank of America Corp. All of these securities are available for sale.

	As of March 31, 2013						As of December 31, 2012
(dollars in thousands)	Amortized Cost		Fair Value		Fair Value as % of Shareholders Equity		Amortized Cost		Fair Value		Fair Value as % of Shareholders Equity
Issuer
Fannie Mae	$	114,151	$	115,311	37.8	%	$	41,795	$	42,665	14.2	%
Bank of America Corp.		39,208		38,923	12.8			41,913		40,964	13.7
Total	$	153,359	$	154,234			$	83,708	$	83,629

Schedule Of Contractual Maturities Of Debt Securities [Table Text Block]

The amortized cost and fair value of investment securities are shown below. Expected maturities may differ from contractual maturities, as borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	As of March 31, 2013
(in thousands)	Amortized Cost		Fair Value
Securities available for sale
Due within one year	$	1,013	$	1,019
Due after one year through five years		1,219		1,380
Due after five years through ten years		---		---
Due after ten years		21,480		18,599
Total		23,712		20,998
Mortgage-backed securities		143,543		145,308
Collateralized mortgage obligations		145,159		144,507
Other securities with no stated maturity		2,655		3,784
Total	$	315,069	$	314,597
Securities held to maturity
Due within one year	$	400	$	400
Due after one year through five years		100		100
Due after five years through ten years		1,986		2,057
Due after ten years		12,383		14,385
Total	$	14,869	$	16,942

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following table presents gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. No securities held to maturity were in a loss position at March 31, 2013 or at December 31, 2012.

	Less than 12 Months						12 Months or Longer					Total
March 31, 2013 (dollars in thousands)	#		Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses
Securities available for sale
State and municipal obligations		3	$	6,767	$	150	---	$	---	$	---	3	$	6,767	$	150
Collateralized debt obligations		---		---		---	12		3,004		2,678	12		3,004		2,678
Mortgage-backed securities		3		25,950		191	---		---		---	3		25,950		191
Collateralized mortgage obligations		1		871		---	25		83,689		2,339	26		84,560		2,339
Other securities		---		---		---	1		830		166	1		830		166
Total		7	$	33,588	$	341	38	$	87,523	$	5,183	45	$	121,111	$	5,524

	Less than 12 Months						12 Months or Longer					Total
December 31, 2012 (dollars in thousands)	#		Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses
Securities available for sale
State and municipal obligations		2	$	6,038	$	61	---	$	---	$	---	2	$	6,038	$	61
Collateralized debt obligations		---		---		---	12		2,744		3,015	12		2,744		3,015
Mortgage-backed securities		3		26,186		150	1		454		1	4		26,640		151
Collateralized mortgage obligations		2		14,733		33	25		88,185		3,867	27		102,918		3,900
Other securities		---		---		---	2		1,815		180	2		1,815		180
Total		7	$	46,957	$	244	40	$	93,198	$	7,063	47	$	140,155	$	7,307

Schedule of Debt [Table Text Block]

The following table provides information regarding the CDO portfolio.

(dollars in thousands)
										Quarter Ended March 31, 2013 OTTI 1
Name	Single/ Pooled	Class/ Tranche	Amortized Cost		Fair Value		Unrealized Loss (Gain)			Credit Portion		Other		Total
ALESCO I	Pooled	B-1	$	520	$	327	$	193		$	---	$	---	$	---
ALESCO II	Pooled	B-1		345		320		25			---		---		---
MCAP III	Pooled	B		276		152		124			---		---		---
MCAP IX	Pooled	B-1		267		157		110			---		---		---
PRETZL IV	Pooled	MEZ		116		56		60			---		---		---
PRETZL XI	Pooled	B-1		821		306		515			---		---		---
PRETZL XII	Pooled	B-2		499		315		184			---		---		---
PRETZL XIII	Pooled	B-1		325		189		136			---		---		---
PRETZL XIV	Pooled	B-1		634		369		265			---		---		---
TRPREF II	Pooled	B		635		261		374			---		---		---
USCAP II	Pooled	B-1		947		303		644			---		---		---
USCAP III	Pooled	B-1		297		249		48			---		---		---
MCAP XVIII	Pooled	C-1		174		220		(46	)		---		---		---
PRETZL VII	Pooled	MEZ		250		280		(30	)		---		---		---
Subtotal - CDOs in a loss position				5,682		3,004		2,678			---		---		---
Total CDOs			$	6,106	$	3,504	$	2,602		$	---	$	---	$	---

		Dollar Basis						Constant Default Rate
	Lowest Rating	% Performing			% Deferrals / Defaults2							Discount Margin3
Name								High		Low
ALESCO I	C		83.93	%		16.07	%		0.76		0.39		11.70	%
ALESCO II	C		91.94			8.06			0.70		0.36		11.65
MCAP III	B		70.00			30.00			0.69		0.35		10.50
MCAP IX	CC		56.62			43.38			0.25		0.25		16.80
MCAP XVIII	C		71.00			29.00			0.33		0.25		11.05
PRETZL IV	CCC		72.93			27.07			0.25		0.25		11.00
PRETZL VII	C		51.08			48.92			0.84		0.43		16.80
PRETZL XI	C		68.21			31.79			0.25		0.25		11.60
PRETZL XII	C		67.45			32.55			0.39		0.25		11.62
PRETZL XIII	C		67.54			32.46			0.60		0.31		11.57
PRETZL XIV	C		63.97			36.03			0.36		0.25		11.57
TRPREF II	C		56.46			43.54			0.36		0.25		11.92
USCAP II	C		80.46			19.54			0.43		0.25		11.65
USCAP III	C		70.73			29.27			0.31		0.25		11.53
Subtotal - CDOs in a loss position			---			---
Total			68.74	%		31.26	%

¹ Recognized in other-than-temporary impairment on investment securities on the Consolidated Statements of Income

² Represents percentage of the underlying trust preferred collateral not currently making dividend payments or issued by financial institutions that have been placed into receivership by the FDIC

³ Fair market value discount margin to LIBOR

Schedule Of Investment Grades For Collateralized Mortgage Obligations [Table Text Block]

The following table presents the investment grades assigned by the rating agencies for CMO securities which were in a loss position along with OTTI losses recorded as of and for the quarter ended March 31, 2013.

(dollars in thousands)	As of March 31, 2013					Quarter Ended March 31, 2013 OTTI
Moody/S&P Ratings	#	Fair Value		Unrealized Loss		Credit Portion		Other		Total
AAA	---	$	---	$	---	$	---	$	---	$	---
AA	1		11,010		36		---		---		---
A	6		15,068		372		---		---		---
BBB	8		18,068		458		---		---		---
Below investment grade	11		40,414		1,473		268		---		268
Total	26	$	84,560	$	2,339	$	268	$	---	$	268

Schedule Of Investment Securities With Credit Related Deterioration [Table Text Block]

The OTTI in the table above was related to one security with the following characteristics:

Description	2004 ARM Senior Support
	As of March 31, 2013
Credit rating	C
Rating agency	Moody’s
Twelve-month average loss severity	55.72%
Twelve-month average default rate	9.37
60 day or more delinquency rate	21.35
	As of December 31, 2012
Credit rating	C
Rating agency	Moody’s
Twelve-month average loss severity	50.53%
Twelve-month average default rate	11.05
60 day or more delinquency rate	20.56

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]

The following table presents the cumulative credit-related losses recognized in earnings.

	Quarter Ended March 31, 2013
(in thousands)	CDOs		CMOs		Other Securities		Total
Cumulative credit related losses recognized in earnings at beginning of period	$	5,823	$	1,971	$	1,100	$	8,894
Additions
Credit loss for which previous OTTI was recognized		---		268		---		268
Cumulative credit related losses recognized in earnings at end of period	$	5,823	$	2,239	$	1,100	$	9,162
	Quarter Ended March 31, 2012
	CDOs		CMOs		Other Securities		Total
Cumulative credit related losses recognized in earnings at beginning of period	$	5,782	$	1,509	$	1,100	$	8,391
Additions
Credit loss for which previous OTTI was recognized		41		28		---		69
Cumulative credit related losses recognized in earnings at end of period	$	5,823	$	1,537	$	1,100	$	8,460