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STOCK BASED COMPENSATION:
 12 Months Ended
Dec. 31, 2012
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
STOCK BASED COMPENSATION

16.     STOCK BASED COMPENSATION:

 

On February 5, 2011, the Corporation's Board of Directors adopted and approved the First Financial Corporation2011 Omnibus Equity Incentive Plan (the "2011 Stock Incentive Plan") effective upon the approval of the Plan by the Company's shareholders, which occurred on April 20, 2011 at the Corporation’s annual meeting of shareholders. The 2011 Stock Incentive Plan provides for the grant of non qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and incentive awards. An aggregate of 700,000 shares of common stock are reserved for issuance under the 2011 Stock Incentive Plan. Shares issuable under the 2011 Stock Incentive Plan may be authorized and unissued shares of common stock or treasury shares.

 

During the first quarter of 2012, the Compensation Committee of the Board of Directors of the Company granted restricted stock awards to certain executive officers pursuant to the Corporation's annual performance-based stock incentive bonus plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The value of the awards was determined by dividing the award amount by the closing price of a share of Company common stock on the grant date, April 8, 2011 ($36.88). The restricted stock awards vest as follows — 33% on the first anniversary, 33% on the second anniversary and the remaining 34% on the third anniversary of the earned date. The Corporation has the right retain shares to satisfy any withholding tax obligation. A total of 39,643 shares of restricted common stock of the Company were granted under the 2011 Stock Incentive Plan. A total of 660,357 remain to be granted under this plan.

 

Restricted Stock

 

Restricted stock awards require certain service-based or performance requirements and have a vesting period of 3 years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of issue.

 

     Weighted Average 
  Number  Grant Date 
(shares in thousands) Outstanding  Fair Value 
Nonvested balance at January 1, 2012  -  $- 
Granted during the year  39,643   36.88 
Vested during the year  13,212   30.24 
Forfeited during the year  -   - 
Novested balance at December 31, 2012  26,431   36.88 

 

As of December 31, 2012, there was $975 thousand of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2 years. The total fair value of the shares vested during the years ended December 31, 2012 was $340 thousand.