FORM 10-Q



                       SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C.  20549

              QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE

                        SECURITIES EXCHANGE ACT OF 1934

                          FIRST FINANCIAL CORPORATION

                                 June 30, 1997  

                                  
<PAGE>


                                      

                           SECURITIES AND EXCHANGE COMMISSION

                                 WASHINGTON, D.C.  20549

                                             
                  QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE

                             SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended June 30, 1997

Commission File Number 0-16759

                                FIRST FINANCIAL CORPORATION
                  (Exact name of registrant as specified in its charter)

                              INDIANA                                35-1546989
                  (State or other jurisdiction             (I.R.S. Employer
                   incorporation or organization)          Identification No.)

                  One First Financial Plaza, Terre Haute, IN    47807
                  (Address of principal executive office)     (Zip Code)

                  (812)-238-6000
                  (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 
during the preceding 12 months (or for such period that the registrant was 
required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.
Yes   X    No      .

As of June 30, 1997 were outstanding 6,681,876 shares without par value, of the
registrant.















                                            1 <PAGE> 





                            FIRST FINANCIAL CORPORATION

                                      FORM 10-Q

                                        INDEX

                                                                        Page No.
PART I.  Financial Information

      Item 1.  Financial Statements:


            Consolidated Balance Sheets........................................3

            Consolidated Statements of Income..................................4

            Consolidated Statements of Cash Flows..............................5

            Notes to Consolidated Financial Statements.........................6

      Item 2.  Management's Discussion and Analysis of
                  Financial Condition and Results of Operations................8

PART II.  Other Information:

      Item 4.  Submission of Matters to a Vote of
                  Security Holders............................................11

            
      Signatures..............................................................13






















                                          2 <PAGE> 




<TABLE>
                                FIRST FINANCIAL CORPORATION
                                CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                                                  June 30, December 31,
                                                                     1997        1996  
                                                             (Dollar amounts in thousands)
<S>                                                           <C>         <C>        
 Cash and due from banks                                          $61,860     $66,658
 Interest-bearing deposits with financial institutions                596       1,095
 Federal funds sold and securities purchased under                   
  agreements to resell                                                275       2,000
 Investments:                                                            
  Available-For-Sale                                              606,366     582,744
 Loans:                                                                  
   Commercial, financial and agricultural                         202,090     197,449
   Real estate - construction                                      24,540      22,629
   Real estate - mortgage                                         523,856     508,010
   Installment                                                    187,651     188,670
   Lease financing                                                  3,299       3,284
                                                                  941,436     920,042
   Less:                                                                 
     Unearned income                                                1,074       1,275 
     Allowance for loan losses                                     12,581      10,756
                                                                  927,781     908,011
 Accrued interest receivable                                       14,833      14,985
 Premises and equipment, net                                       25,188      26,137 
 Other assets                                                      18,021      18,012
                TOTAL ASSETS                                   $1,654,920  $1,619,642
                                                                         
                                                                       
                LIABILITIES AND SHAREHOLDERS' EQUITY                     
 Deposits:                                                               
  Noninterest-bearing                                            $139,959    $141,492
  Interest-bearing:                                                      
    Certificates of deposit of $100,000 or more                   204,296     187,199
    Other interest-bearing deposits                               852,579     846,537
                                                                1,196,834   1,175,228
 Short-term borrowings:                                                   
  Federal funds purchased and securities                                 
   sold under agreements to repurchase                             60,866      62,416
  Treasury tax and loan open-end note                               8,354       5,131
  Advances from Federal Home Loan Bank                            154,716     140,244 
                                                                  223,936     207,791
 Other liabilities                                                 14,802      15,685
 Long-term debt                                                     6,652       6,637
 Long-term advances from Federal Home Loan Bank                    57,912      63,924  
            TOTAL LIABILITIES                                   1,500,136   1,469,265
                                                                         
 Shareholders' equity:                                                   
  Common stock, $.125 stated value per share;                             
   authorized 10,000,000 shares; issued and outstanding               835         835
   6,681,876 shares for 1996 and 1997                                                
  Additional capital                                               43,761      43,761
  Retained earnings                                               107,559     101,093
  Unrealized gains on securities, net of tax                        2,629       4,688
            TOTAL SHAREHOLDERS' EQUITY                            154,784     150,377
            TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY         $1,654,920  $1,619,642            



The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>




                                            3 <PAGE> 




<TABLE>
                           FIRST FINANCIAL CORPORATION
                         CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
                                          Three Months Ended       Six Months ended
                                               June 30,                June 30,
                                          1997       1996 (A)       1997       1996 <F1>(A)  
                                        (Amounts in thousands, except per share amounts)
<S>                                       <C>        <C>         <C>        <C>
INTEREST INCOME:
   Loans                                   $20,502    $19,128     $40,442    $38,438
   Investment securities:                                                
     Taxable                                 8,098      7,544      16,205     14,574
     Tax-exempt                              1,864      1,621       3,647      3,302
                                             9,962      9,165      19,852     17,876
   Other interest income                        57        138          77        365
     TOTAL INTEREST INCOME                  30,521     28,431      60,371     56,679 
                                                                         
 INTEREST EXPENSE:                                                       
   Deposits                                 11,585     11,532      22,889     22,883
   Other                                     3,930      2,653       7,811      5,172
     TOTAL INTEREST EXPENSE                 15,515     14,185      30,700     28,055
                                                                         
     NET INTEREST INCOME                    15,006     14,246      29,671     28,624
                                                                         
   Provision for                                                         
     loan losses                             1,336        968       2,737      1,703 
                                                                         
     NET INTEREST INCOME AFTER                                           
      PROVISION FOR                                                      
        LOAN LOSSES                         13,670     13,278      26,934     26,921
 OTHER INCOME                                                            
   Trust department income                     495        443         985        858
   Service charges on deposit                                            
     accounts                                  338        365         676        716
   Other service charges and fees              804        758       1,690      1,618
   Investment securities gains                 124        148         355        154 
   Other                                       158        279         572        636
                                             1,919      1,993       4,278      3,982
 OTHER EXPENSES                                                          
   Salaries and employee benefits            5,326      5,267      10,601     10,459
   Occupancy expense                           702        808       1,396      1,673
   Equipment expense                           769        656       1,531      1,212
   Other                                     2,800      2,962       5,680      6,121
                                             9,597      9,693      19,208     19,465
                                                                         
     INCOME BEFORE INCOME TAXES              5,992      5,578      12,004     11,438 
 Income Tax Expense                          1,618      1,616       3,199      3,417
     NET INCOME                             $4,374     $3,962      $8,805     $8,021
                                                                         
 EARNINGS PER SHARE                          $0.65      $0.59       $1.32      $1.20
                                                                         
 Weighted average number of                                              
  shares outstanding                         6,682      6,682       6,682      6,677

 The accompanying notes are an integral part of the consolidated financial statements.  
<F1>(A) All information is restated for the 5% stock dividend and Crawford merger.       

</TABLE>
                                            4 <PAGE> 


<TABLE>
 
                              FIRST FINANCIAL CORPORATION
                           CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                                         Six Months Ended  
                                                                             June 30,

                                                                        1997      1996 <F1>(A)
<S>                                                                <C>         <C> 
 CASH FLOWS FROM OPERATING ACTIVITIES:                                      
 Net income                                                           $8,805      $8,021
 Adjustment to reconcile net income to net cash                             
  provided by operating activities:                                         
    Provision for loan losses                                          2,737       1,702
    Provision for depreciation and amortization                        1,352       1,260 
    Net (increase) decrease in accrued interest receivable               152        -667
    Other, net                                                          -912      -1,607
      NET CASH PROVIDED BY OPERATING ACTIVITIES                       12,134       8,709
                                                                            
                                                                            


 CASH FLOWS FROM INVESTING ACTIVITIES:                            

  Net decrease from purchase and maturities of interest-bearing                         
  deposits with financial institutions                                   499         175
  Sales and maturities of available-for-sale securities               78,787      75,559  
  Purchases of available-for-sale securities                        -105,042    -101,011
  Loans made to customers, net of repayments                         -21,847       5,375
  Net decrease in federal funds sold                                   1,725       7,575
  Additions to premises and equipment                                   -470      -2,259
       NET CASH USED BY INVESTING ACTIVITIES                         -46,348     -14,586
                                                                            
 CASH FLOWS FROM FINANCING ACTIVITIES:                                      
                                                                            
  Net increase from sales and                                               
   redemptions of certificates of deposit                             19,629      31,734  
  Net increase (decrease) in other deposits                            1,977     -28,776
  Net increase (decrease) in short-term borrowings                    16,145      -8,289
  Cash dividends                                                      -2,338      -1,611
  Proceeds from reissuance of Treasury Stock                               0         600
  Purchase of treasury stock                                               0        -131
  Net decrease in long-term debt                                      -5,997      -1,832
      NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES                29,416      -8,305
                                                                            
      NET DECREASE IN CASH AND CASH EQUIVALENTS                      - 4,798     -14,182
      CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                    66,658      65,298 
                                                                            
      CASH AND CASH EQUIVALENTS, END OF PERIOD                       $61,860     $51,116
 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                         
   Cash paid during the period for interest                          $32,444     $28,198
                                                                            
   Income taxes paid                                                  $3,134      $3,801

    The accompanying notes are an integral part of the consolidated financial statements.

<F1>(A) All information is restated for the 5% stock dividend and Crawford merger.
</TABLE>
                                      5 <PAGE>

                          FIRST FINANCIAL CORPORATION
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1.   The accompanying June 30, 1997 and 1996 consolidated financial statements
are unaudited.  The December 31, 1996, consolidated balance sheet amounts are
as reported in the Corporation's 1996 annual report.

     The significant accounting policies followed by First Financial
Corporation and its subsidiaries for interim financial reporting are
consistent with the accounting policies followed for annual financial
reporting.  All adjustments, which are in the opinion of management necessary
for a fair presentation of the results for the periods reported, have been
included in the accompanying consolidated financial statements and are of a
normal recurring nature.

2.   The provision for loan losses charged to expense is based upon each 
affiliate's past loan and lease loss experience and an evaluation of 
potential losses in the current loan and lease portfolio, including the 
evaluation of impaired loans under SFAS 114.  A loan is considered to be 
impaired when, based upon current information and events, it is probable that
the Corporation will be unable to collect all amounts due according to the 
contractual terms of the loan. Impairment is primarily measured based on the 
fair value of the loan's collateral. Impairment losses are included in the 
calculation of the provision for loan and lease losses.  SFAS 114 does not 
apply to large groups of smaller balance homogeneous loans that are 
collectively evaluated for impairment, except for those loans restructured 
under a troubled debt restructuring.  Loans collectively evaluated for 
impairment include certain smaller balance commercial loans, consumer loans, 
residential real estate loans, and credit card loans, and are not included in
the data that follows.

The following table summarizes impaired loan information.
                                                                     (000'S)
                                                                     June 30,
                                                                   1997     1996


Impaired loans.................................................$  2,107   $4,955
Impaired loans with related reserve for loan losses calculated 
 under SFAS 114................................................   2,107    4,955
Impaired loans with no realized reserve for loan losses calculated
 under SFAS 114................................................       0        0

                                                                      June 30,
                                                                   1997     1996
   

Average impaired loans.........................................$  1,969   $4,039
Interest income recognized on impaired loans...................      91      153
Cash basis interest income recognized on impaired loans........       0        0

      Interest payments on impaired loans are typically applied to principal
unless collectability of the principal amount is fully deemed to be assured,
in which case interest is recognized on the cash basis.

                                     6<PAGE>
      Commercial loans and residential real estate loans are placed on
nonaccrual at the time the loan is 90 days delinquent unless the credit is
well secured and in the process of collection.  Commercial loans are charged
off at the time the loan becomes 180 days delinquent unless the loan is well
secured and in the process of collection, or other extenuating circumstances 
support collection. Credit card loans and other unsecured personal credit 
lines are typically charged off no later than 180 days delinquent.  Other 
consumer loans are typically charged off at 150 days delinquent.  In all
cases, loans must be placed on nonaccrual or charged off at an earlier date 
if collection of principal or interest is considered doubtful.

      The interest on these loans is accounted for on the cash basis or cost
recovery method, until qualifying for return to accrual.  Loans may be
returned to accrual status when all the principal and interest amounts
contractually due are paid.   























                                      7 <PAGE> 





                      FIRST FINANCIAL CORPORATION


ITEM 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

      The purpose of the review is to point out key factors in First
Financial's recent performance, compared with earlier periods.  The review
should be read in conjunction with the financial statements beginning on Page
3 of this report.  All figures are for the consolidated entities.  It is
presumed the reader of these financial statements and the following narrative
have previously read the Corporation's annual report for 1996.



                         Summary of Operating Results

      The Corporation reported earnings of $8.8 million for the first six
months which reflect a 9.8% increase above the same period for 1996, while the
second quarter net income of $4.4 million reflects a 10.4% increase over the
second quarter of 1996.  Earnings per share results of $1.32 and $0.65 for the
six and three month period respectively, reflect similar increases from the
respective prior year's $1.20 and $0.59 per share. 

Net Interest Income

      First Financial Corporation's primary source of earnings is net interest
income, which is the difference between the interest earned on loans and other
investments and the interest incurred for deposits and other sources of funds.
In the first six months of 1997 net interest income increased to $29,671,000
from $28,624,000 in the same period of 1996.  The net interest margin for the
quarter decreased from 4.30% in 1996 to 4.20% in 1997.  This decrease was the
result of a lower yield on earning assets and the cost of funds was higher
than the prior year.

Other Income

      Other income for the six months of 1997, as compared to the same period
of 1996, increased $296,000 or 7.4%.  The major contributing factor was the
increase in investment securities gains of $355,000 in 1997 compared to
$154,000 as in the same period of 1996.  Second quarter other income decreased
$74,000 or 3.7% from same quarter of 1996 .  There were no other significant
changes. 
  

Other Expenses

     Other expenses for the first six months of 1997, as compared to the same
period of 1996, decreased to $19,208,000 from $19,465,000. The Corporation
changed data processing service from a facilities management firm to an in-
house operation which impacted data processing expenses favorably, decreasing
to $66,000 in 1997 from $696,000 for the same period of 1996. These decreases
were offset by increased equipment expenses which grew by $319,000 or 26.3%.
Depreciation expense for capital expenditures incurred for the system
conversion is the primary reason for the increase. Occupancy expenses
decreased by $277,000 or 16.6% compared to the same period of 1996 due to real
and personal property tax reduction. This also affected second quarter other
expenses which decreased to $9,597,000 from $9,693,000 for the same quarter of
1996. There were no other significant changes.

                                      8<PAGE>       
Allowance for Loan Losses              

      The Corporation's provision for loan losses totaled $2,737,000 for the
first six months of 1997 compared to $1,703,000 in the same period a year
earlier. This represents a $1,034,000 increase and was deemed appropriate to
properly reserve for the increases in lending activity and underperforming
loans during the period.  

      At June 30, 1997, the allowance for loan losses was 1.34% of net loans.
This compares with an allowance of 1.17% at December 31, 1996.  Net chargeoffs
for the first six months of 1997 were $912,000 compared to $1,700,000 for the
same period of 1996.  The ratio of net chargeoffs to average loans outstanding
for the last five years ended December 31, 1996, was .37%.  With this
experience and based on management's review of the portfolio, management
believes the allowance of $12,581,000 at June 30, 1997 is adequate.

Underperforming Assets



      The following is a listing of all categories of non-performing assets
which includes potential problem loans at June 30, 1997 and December 31, 1996.
                                            
                                        June 30, 1997        December 31, 1996
                                            (000's)                (000's)

Nonaccrual Loans                           $ 3,765                $ 2,504
Restructured Loans                              58                     34
                                           $ 3,823                $ 2,538


Past due                                                                    
> 90 days                                  $ 7,699                $ 5,296
Land sold on contract and other              1,370                  1,871
Total non-performing assets                $12,892                $ 9,705
                                           =======                =======
                                                                      

     The ratio of the allowance for loan losses as a percentage of non-
performing assets (exclusive of land sold on contract) was 109% at June
30,1997 compared to 137% at December 31, 1996.  This decrease is the result of
an increase in the amount of loans placed in nonaccrual amounting to
$1,261,000 and past due 90 days or more amounting to $2,403,000.  There was no
one significant factor which affected this increase.

      The following loan categories comprise significant components of the
non-performing loans at June 30, 1997

Non-Accrual Loans:
                                                
                                       June 30, 1997         December 31, 1996
                                          (000's)                 (000's)


       1-4 family residential           $  628    17%         $   287    12%
       Commercial loans                  1,728    46            1,420    57 
       Installment loans                   470    12              469    18 
       Other, various                      939    25              328    13 
                                        $3,765   100%          $2,504   100%
                                        ======   ====          ======   ====
Past due 90 days or more:

       1-4 family residential           $4,180    54%          $2,256    43% 
       Commercial loans                  1,412    18%           1,125    21 
       Installment loans                   845    11%             943    18 
       Non farm nonresidential properties  784    11%             848    16 
       Other, various                      478     6              124     2    
                                        $7,699   100%          $5,296   100%
                                        ======   ====          ======   ====   

                                          9 <PAGE>

      There are no material concentrations by industry within the non-
performing loans.  
     
      In addition to the above under-performing loans, certain loans are felt
by management to be impaired for reasons other than the current repayment
status.  Such reasons may include, but not be limited to, previous payment
history, bankruptcy proceedings, industry concerns, or information related to
a specific borrower that may result in a negative future event to that
borrower.  At June 30, 1997 the Corporation had $1.4 million of doubtful loans
which are still in accrual status. 


INTEREST RATE SENSITIVITY AND LIQUIDITY

      First Financial Corporation charges the eight subsidiary banks with
monitoring and managing their individual sensitivity to fluctuations in
interest rates and assuring that they have adequate liquidity to meet loan and
deposit demand.  This function is facilitated by the Asset Liability
Committee.  The primary goal of the committee is to maximize net interest
income within the interest rate risk limits approved by the Board of
Directors.

Interest Rate Risk

      The committee reviews a series of monthly reports to insure that
performance objectives are being met.  The committee monitors and controls
interest rate risk through earnings simulation.  Simulation modeling measures
the effects of interest rate changes on net interest  income.  The primary
measure of interest rate risk is Earnings At Risk.  This measure projects the
effect of various rate movements over the next three years.

      The Corporation's Earnings At Risk as of June 30, 1997 are summarized
below.  Given a 100 basis point increase in rates, net income would decrease
3.57% over the next 12 months.  A 100 basis point decrease would result in a
 .78% increase in net income.

                              Earnings At Risk

                        YEAR 1     YEAR 2      YEAR 3
DOWN 300                -1.02%     -9.30%     -18.26%
DOWN 200                  .69      -4.80      -10.95 
DOWN 100                  .78      -2.00       -5.11 
UP   100                -3.57      -6.20       -5.61 
UP   200                -4.32      -4.83       -3.69 
UP   300                -1.62       1.10        5.33 

Liquidity Risk

      Liquidity is measured by the Corporation's ability to raise funds to
meet the obligations from its customers, including deposit withdrawals and
credit needs.  The Corporation has $9.3 million of investments that mature
throughout the coming twelve months. The Corporation also anticipates $19.4
million of principal from mortgage backed securities. Given the current rate
environment the Corporation anticipates $52.8 million of Federal Agency
Securities called within the next year.


Capital Adequacy

      As of June 30, 1997 the Corporation's leverage ratio was 9.36% which
compared to 9.35% at December 31, 1996.

      At June 30, 1997, the Corporation's total capital, which includes Tier
II capital, was 17.01% compared to 16.00% at December 31, 1996. These amounts
exceed minimum regulatory capital requirements.

                                     10 <PAGE>
  
                          FIRST FINANCIAL CORPORATION
                           PART II OTHER INFORMATION


ITEM 4.  Submission of Matters to a Vote of Security Holders


(a)   The Annual meeting of the shareholders of the Corporation was held on
      April 16, 1997.

(b)   The following were elected Directors of the Corporation:
      Walter A. Bledsoe, B. Guille Cox, Jr., Thomas T. Dinkel, Anton Hulman
      George, Mari Hulman George, Gregory L. Gibson, Max Gibson, Norman L.
      Lowery, William Niemeyer, Patrick O'Leary, John W. Ragle, Chapman J.
      Root II, Donald E. Smith, and Virginia Smith.

(c)   The shareholders unanimously approved the annual report of the
      Corporation and unanimously approved the actions of the Directors and
      Officers of the Corporation for the fiscal year ended December 31, 1996.

(d)   The proposal to amend the Corporation's Articles of Incorporation to
      increase the authorized shares of Common stock from 10,000,000 to
      40,000,000 was approved.

(e)   The proposal to adopt an amendment to the Corporation's Articles of
      Incorporation providing the classification of the Corporation's Board of
      Directors into three classes, setting the number of directors at between
      5 and 20, and providing that vacancies on the Board of Directors may be
      filled for the remainder of any unexpired term by a   majority vote of
      directors in office was approved.

(f)   The proposal to adopt an amendment to the Corporation's Articles of
      Incorporation providing that directors may be removed only for cause and
      by the affirmative vote of at least 66 2/3% of the shares eligible to
      vote for directors was approved.

(g)   The proposal to adopt an amendment to the Corporation's Articles of
      Incorporation providing that special meetings of shareholders may only
      be called by the Chairman or a majority of the directors of the 
      Corporation was approved.

(h)   The proposal to adopt an amendment to the Corporation's Articles  of
      Incorporation authorizing 10,000,000 shares of preferred stock was 
      approved.

(i)   The proposal to adopt an amendment to the Corporation's Articles  of
      Incorporation enumerating factors the Board may consider in evaluating
      offers to acquire the Corporation was approved.

(j)   The proposal to adopt an amendment to the Corporation's Articles  of
      Incorporation to add a "fair price business combination" provision was
      approved.

(k)   The proposal to adopt an amendment to the Corporation's Articles  of
      Incorporation to require a 66 2/3% vote of shareholders to amend  certain
      provisions of the Corporation's Articles of Incorporation was approved.




                                      11 <PAGE> 


(l)   The proposal to adopt an amendment to the Corporation's Articles of
      Incorporation limiting the liability of directors and indemnifying 
      officers, directors, employees and agents of the Corporation to the extent
      permitted by Indiana law was approved.

(m)   The proposal to adopt an amendment to the Corporation's Articles  of
      Incorporation consistent with Indiana law was approved.




No other information is required to be filed under Part II of this form.


                                      12 <PAGE> 



                          FIRST FINANCIAL CORPORATION
                           PART II OTHER INFORMATION
                                   FORM 10-Q
                                  SIGNATURES


      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                   FIRST FINANCIAL CORPORATION
                                                           (Registrant)




Date:  August 13, 1997                             By       (Signature)        
                                                   Donald E. Smith, President




Date:  August 13, 1997                             By       (Signature)        
                                                   John W. Perry, Secretary




Date:  August 13, 1997                             By       (Signature)        
                                                   Michael A. Carty, Treasurer





















                                      13<PAGE>