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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2006
 OR
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    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from                      to
 Commission file number 0-16759
 FIRST FINANCIAL CORPORATION
 (Exact name of registrant as specified in its charter)
 INDIANA
(State of Incorporation)
    
    35-1546989
(I.R.S. Employer Identification Number)
 One First Financial Plaza 
Terre Haute, Indiana
(Address of Registrants Principal Executive Offices)
    
    47807
(Zip Code)
 (812) 238-6000
(Registrants Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
 Title of each class
    
    Name of Exchange on Which RegisteredCommon Stock, no par value
    
    The NADAQ Stock Market LLC
 Securities registered pursuant to Section 12(g) of the Act:
None
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   DOCUMENTS INCORPORATED BY REFERENCE




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Form 10-K Cross-Reference Index
 pagePART IItem 1
    
    Business
    
    
    2Item 1A
    
    Risk Factors
    
    
    2Item 1B
    
    Unresolved Staff Comments
    
    
    4Item 2
    
    Properties
    
    
    4Item 3
    
    Legal Proceedings
    
    
    5Item 4
    
    Submission of Matters to a Vote of Security Holders
    
    
    5PART IIItem 5
    
    Market for Registrant's Common Equity and Related Stockholder Matters
    
    
    6Item 6
    
    Selected Financial Data
    
    
    6Item 7
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    6Item 7A
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    6Item 8
    
    Financial Statements and Supplementary Data
    
    
    6Item 9
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
    
    
    6Item 9A
    
    Controls and Procedures
    
    
    6Item 9B
    
    Other Information
    
    
    7PART IIIItem 10
    
    Directors, Executive Officers and Corporate Governance
    
    
    8Item 11
    
    Executive Compensation
    
    
    8Item 12
    
    Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
    
    
    8Item 13
    
    Certain Relationships and Related Transactions and Director Independence
    
    
    8Item 14
    
    Principal Accountant Fees and Services
    
    
    8PART IVItem 15
    
    Exhibits and Financial Statement Schedules
    
    
    9Signatures
    
    
    10, 11Exhibit 10.3Exhibit 13Exhibit 21Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
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PART I
 
 ITEM 1. BUSINESS
  1.
    
    Description of services, affiliations, and number of employees, on page 35.2.
    
    Information regarding supervision of the Corporation, on page 14.3.
    
    Details regarding competition, on page 35.
 
 ITEM 1A. RISK FACTORS
 The Corporation Is Subject To Interest Rate Risk
  The Corporation Is Subject To Lending Risk
  The Corporations Allowance for Possible Loan Losses May Be Insufficient
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The Corporation Operates In a Highly Competitive Industry and Market Area
   
    
    The ability to develop, maintain and build upon long-term customer relationships based
on top quality service, and safe, sound assets.
    
    The ability to expand the Corporations market position.
    
    The scope, relevance and pricing of products and services offered to meet customer needs and demands.
    
    The rate at which the Corporation introduces new products and services relative to its competitors.
    
    Customer satisfaction with the Corporations level of service.
    
    Industry and general economic trends.
  The Corporation Is Subject To Extensive Government Regulation and Supervision
  The Corporations Controls and Procedures May Fail or Be Circumvented
  The Corporation Is Dependent On Certain Key Management and Staff
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The Corporations Information Systems May Experience an Interruption or Breach in Security
  The Corporation Continually Encounters Technological Change
  
 ITEM 1B. UNRESOLVED STAFF COMMENTS
  
 ITEM 2. PROPERTIES
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ITEM 3 LEGAL PROCEEDINGS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
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PART II
 
 ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
  
 ITEM 6. SELECTED FINANCIAL DATA
  ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
  
 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
  1.
    
    Volume/Rate Analysis, on page 36.2.
    
    Securities, on page 38.3.
    
    Loan Portfolio, on page 39.4.
    
    Allowance for Loan Losses, on pages 40 and 41.5.
    
    Nonperforming Loans, on pages 41.6.
    
    Deposits, on page 42.7.
    
    Consolidated Balance Sheet-Average Balances and Interest Rates, on page 45.
 
 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
  
 ITEM 9A. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Controls
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Managements Report on Internal Control Over Financial Reporting
  
 ITEM 9B. OTHER INFORMATION
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PART III
 
 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
  
 ITEM 11. EXECUTIVE COMPENSATION
  
 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER
MATTERS
  
 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
  
 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
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PART IV
 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 (a)(1)
    
    The following consolidated financial statements of the Registrant and its
subsidiaries are included in the 2006 Annual Report to Shareholders of First Financial
Corporation attached:
      (2)
    
    Schedules to the Consolidated Financial Statements required by Article 9 of
Regulation S-X are not required, inapplicable, or the required information has been
disclosed elsewhere.(3)
    
    Listing of Exhibits:
 Exhibit Number
    
    Description3.1
    
    Amended and Restated Articles of Incorporation of First Financial
Corporation, incorporated by reference to Exhibit 3(i) of the
Corporations Form 10-Q filed for the quarter ended September 30,
20023.2
    
    Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit
3(ii) of the Corporations Form 10-Q filed for the quarter ended September 30, 200210.1
    
    Employment Agreement for Norman L. Lowery, dated March 29, 2006 and effective January
1, 2006, incorporated by reference to Exhibit 10.2 to the Corporations Form 10-Q filed
for the quarter ended March 31, 200610.2
    
    2001 Long-Term Incentive Plan of First Financial Corporation, incorporated by
reference to Exhibit 10.3 of the Corporations Form 10-Q filed for the quarter ended
September 30, 200210.3
    
    2007 Schedule of Director Compensation10.4
    
    2007 Schedule of Named Executive Officer Compensation, incorporated by reference to
the Corporations Form 8-K filed December 22, 200613
    
    Annual Report21
    
    Subsidiaries31.1
    
    Certification pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal
Executive Officer31.2
    
    Certification pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal
Financial Officer32.1
    
    Certification pursuant to 18 U.S.C. Section 1350 of Principal Executive Officer32.2
    
    Certification pursuant to 18 U.S.C. Section 1350 of Principal Financial Officer
 (b)
    
    Exhibits-Exhibits to (a) (3) listed above are attached to this report.(c)
    
    Financial Statements Schedules-No schedules are required to be submitted. See response to
ITEM 15(a) (2).
 
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SIGNATURES
  First Financial Corporation/s/ Michael A. CartyMichael A. Carty, Secretary, Treasurer & CFO(Principal Financial Officer and Principal Accounting Officer)  10




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NAME
    
    DATE/s/ Donald E. Smith
    
    March 12, 2007Donald E. Smith, President and Director/s/ Michael A. Carty
    
    March 12, 2007Michael A. Carty, Secretary, Treasurer & CFO(Principal Financial Officer and Principal Accounting Officer)/s/ W. Curtis Brighton
    
    March 12, 2007W. Curtis Brighton, Director/s/ B. Guille Cox, Jr.
    
    March 12, 2007B. Guille Cox, Jr., Director/s/ Thomas T. Dinkel
    
    March 12, 2007Thomas T. Dinkel, Director/s/ Anton H. George
    
    March 12, 2007Anton H. George, Director/s/ Gregory L. Gibson
    
    March 12, 2007Gregory L. Gibson, Director/s/ Norman L. Lowery
    
    March 12, 2007Norman L. Lowery, Vice Chairman, CEO & Director(Principal Executive Officer)/s/ Patrick OLeary
    
    March 12, 2007Patrick OLeary, Director/s/ Ronald K. Rich
    
    March 12, 2007Ronald K. Rich, Director/s/ Virginia L. Smith
    
    March 12, 2007Virginia L. Smith, Director
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EXHIBIT INDEX
 ExhibitNumber
    
    Description10.3
    
    2007 Schedule of Director Compensation13
    
    Annual Report21
    
    Subsidiaries31.1
    
    Certification pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal
Executive Officer31.2
    
    Certification pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal
Financial Officer32.1
    
    Certification pursuant to 18 U.S.C. Section 1350 of Principal Executive Officer32.2
    
    Certification pursuant to 18 U.S.C. Section 1350 of Principal Financial Officer
  12