EMPLOYEE BENEFIT PLANS

First Financial sponsors a non-contributory defined benefit pension plan covering substantially all employees and uses a December 31 measurement date for the plan. Plan assets were primarily invested in fixed income and publicly traded equity mutual funds. The pension plan does not directly own any shares of First Financial common stock or any other First Financial security or product.

First Financial made no cash contributions to fund the pension plan during the nine months ended September 30, 2017, or the year ended December 31, 2016, and does not expect to make cash contributions to the plan through the remainder of 2017. As a result of the plan’s actuarial projections, First Financial recorded income of $0.3 million and $0.2 million for the three months ended September 30, 2017 and 2016, respectively. First Financial recorded income of $1.0 million and $0.7 million for the nine months ended September 30, 2017 and 2016, respectively.

The following table sets forth information concerning amounts recognized in First Financial’s Consolidated Statements of Income related to the Company's pension plan:



	Three months ended						Nine months ended
	September 30,						September 30,
(Dollars in thousands)	2017			2016			2017			2016
Service cost	$	1,238		$	1,308		$	3,715		$	3,925
Interest cost	589			581			1,767			1,743
Expected return on assets	(2,481		)	(2,431		)	(7,443		)	(7,294		)
Amortization of prior service cost	(103		)	(103		)	(310		)	(310		)
Net actuarial loss	438			420			1,315			1,261
Net periodic benefit (income) cost	$	(319	)	$	(225	)	$	(956	)	$	(675	)