##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For The Quarterly Period Ended June 30, 2007
 Commission File Number 0-16759
 FIRST FINANCIAL CORPORATION
  INDIANA
    
    35-1546989(State or other jurisdiction 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 One First Financial Plaza, Terre Haute, IN
    
    47807(Address of principal executive office)
    
    (Zip Code)
 (812)238-6000
 þ o
 o þ o
 o þ




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##### 



PART I. Financial Information
    
    Page No.Item 1. Financial Statements:Consolidated Balance Sheets
    
    
    3Consolidated Statements of Income
    
    
    4Consolidated Statements of Shareholders Equity
    
    
    5Consolidated Statements of Cash Flows
    
    
    7Notes to Consolidated Financial Statements
    
    
    8Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    10Item 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    10Item 4. Controls and Procedures
    
    
    13PART II. Other Information:Item 1. Legal Proceedings
    
    
    13Item 1A. Risk Factors
    
    
    13Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    13Item 3. Defaults upon Senior Securities
    
    
    13Item 4. Submission of Matters to a Vote of Security Holders
    
    
    13Item 5. Other Information
    
    
    13Item 6. Exhibits
    
    
    14Signatures
    
    
    15
  2




---



##### 



Part I  Financial Information
 
  
 
 June 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCash and due from banks
    
    $
    71,074
    
    
    $
    77,682Federal funds sold and short-term investments
    
    
    12,769
    
    
    
    21,437Securities available-for-sale
    
    
    599,018
    
    
    
    559,053Loans:Commercial, financial and agricultural
    
    
    434,248
    
    
    
    407,995Real estate  construction
    
    
    27,997
    
    
    
    33,336Real estate  mortgage
    
    
    680,208
    
    
    
    691,989Installment
    
    
    266,645
    
    
    
    257,065Lease financing
    
    
    2,303
    
    
    
    2,6041,411,401
    
    
    
    1,392,989Less:Unearned income
    
    
    (235
    )
    
    
    (234
    )Allowance for loan losses
    
    
    (15,349
    )
    
    
    (16,169
    )1,395,817
    
    
    
    1,376,586Accrued interest receivable
    
    
    12,673
    
    
    
    13,972Premises and equipment, net
    
    
    32,651
    
    
    
    33,267Bank-owned life insurance
    
    
    58,927
    
    
    
    57,905Goodwill
    
    
    7,102
    
    
    
    7,102Other intangible assets
    
    
    2,150
    
    
    
    2,363Other real estate owned
    
    
    2,993
    
    
    
    3,194Other assets
    
    
    25,120
    
    
    
    23,437TOTAL ASSETS
    
    $
    2,220,294
    
    
    $
    2,175,998LIABILITIES AND SHAREHOLDERS EQUITYDeposits:Noninterest-bearing
    
    $
    229,666
    
    
    $
    227,808Interest-bearing:Certificates of deposit of $100 or more
    
    
    210,264
    
    
    
    189,323Other interest-bearing deposits
    
    
    1,070,888
    
    
    
    1,085,5511,510,818
    
    
    
    1,502,682Short-term borrowings
    
    
    31,625
    
    
    
    16,203Other borrowings
    
    
    366,277
    
    
    
    341,805Other liabilities
    
    
    41,779
    
    
    
    44,048TOTAL LIABILITIES
    
    
    1,950,499
    
    
    
    1,904,738Shareholders equityCommon stock, $.125 stated value per share;Authorized shares-40,000,000Issued shares-14,450,966Outstanding shares-13,161,821 in 2007 and 13,270,321 in 2006
    
    
    1,806
    
    
    
    1,806Additional paid-in capital
    
    
    68,003
    
    
    
    68,003Retained earnings
    
    
    243,052
    
    
    
    235,967Accumulated other comprehensive income
    
    
    (10,723
    )
    
    
    (5,494
    )Treasury shares at cost-1,289,145 in 2007 and 1,180,645 in 2006
    
    
    (32,343
    )
    
    
    (29,022
    )TOTAL SHAREHOLDERS EQUITY
    
    
    269,795
    
    
    
    271,260TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    2,220,294
    
    
    $
    2,175,998
   3




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##### 



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)INTEREST INCOME:Loans, including related fees
    
    $
    25,950
    
    
    $
    24,707
    
    
    $
    51,602
    
    
    $
    48,813Securities:Taxable
    
    
    5,836
    
    
    
    5,802
    
    
    
    11,448
    
    
    
    10,867Tax-exempt
    
    
    1,606
    
    
    
    1,538
    
    
    
    3,182
    
    
    
    3,073Other
    
    
    812
    
    
    
    730
    
    
    
    1,594
    
    
    
    1,447TOTAL INTEREST INCOME
    
    
    34,204
    
    
    
    32,777
    
    
    
    67,826
    
    
    
    64,200INTEREST EXPENSE:Deposits
    
    
    10,384
    
    
    
    9,360
    
    
    
    20,589
    
    
    
    17,558Short-term borrowings
    
    
    449
    
    
    
    143
    
    
    
    681
    
    
    
    285Other borrowings
    
    
    4,806
    
    
    
    4,763
    
    
    
    9,534
    
    
    
    9,450TOTAL INTEREST EXPENSE
    
    
    15,639
    
    
    
    14,266
    
    
    
    30,804
    
    
    
    27,293NET INTEREST INCOME
    
    
    18,565
    
    
    
    18,511
    
    
    
    37,022
    
    
    
    36,907Provision for loan losses
    
    
    1,240
    
    
    
    645
    
    
    
    2,930
    
    
    
    2,848NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
    
    
    17,325
    
    
    
    17,866
    
    
    
    34,092
    
    
    
    34,059NON-INTEREST INCOME:Trust department income
    
    
    942
    
    
    
    1,003
    
    
    
    1,920
    
    
    
    1,917Service charges and fees on deposit accounts
    
    
    3,020
    
    
    
    3,099
    
    
    
    5,741
    
    
    
    5,836Other service charges and fees
    
    
    1,462
    
    
    
    1,280
    
    
    
    2,767
    
    
    
    2,627Securities gains/(losses), net
    
    
    0
    
    
    
    1
    
    
    
    20
    
    
    
    9Insurance commissions
    
    
    1,546
    
    
    
    1,479
    
    
    
    2,944
    
    
    
    2,853Gain on sale of mortgage loans
    
    
    220
    
    
    
    23
    
    
    
    404
    
    
    
    154Other
    
    
    339
    
    
    
    330
    
    
    
    1,880
    
    
    
    1,232TOTAL NON-INTEREST INCOME
    
    
    7,529
    
    
    
    7,215
    
    
    
    15,676
    
    
    
    14,628NON-INTEREST EXPENSES:Salaries and employee benefits
    
    
    9,615
    
    
    
    10,304
    
    
    
    19,567
    
    
    
    20,563Occupancy expense
    
    
    1,031
    
    
    
    944
    
    
    
    2,071
    
    
    
    1,885Equipment expense
    
    
    1,069
    
    
    
    1,125
    
    
    
    2,167
    
    
    
    2,168Other
    
    
    4,393
    
    
    
    3,838
    
    
    
    8,361
    
    
    
    7,811TOTAL NON-INTEREST EXPENSE
    
    
    16,108
    
    
    
    16,211
    
    
    
    32,166
    
    
    
    32,427INCOME BEFORE INCOME TAXES
    
    
    8,746
    
    
    
    8,870
    
    
    
    17,602
    
    
    
    16,260Provision for income taxes
    
    
    2,333
    
    
    
    2,445
    
    
    
    4,766
    
    
    
    4,326NET INCOME
    
    $
    6,413
    
    
    $
    6,425
    
    
    $
    12,836
    
    
    $
    11,934PER SHARE DATA:Basic and Diluted
    
    $
    0.48
    
    
    $
    0.48
    
    
    $
    0.97
    
    
    $
    0.90Dividends per share
    
    $
    0.43
    
    
    $
    0.42
    
    
    $
    0.43
    
    
    $
    0.42Weighted average number of shares outstanding (in thousands)
    
    
    13,200
    
    
    
    13,295
    
    
    
    13,225
    
    
    
    13,323
   4




---



##### 



AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Income/(Loss)
    
    
    Stock
    
    
    TotalBalance, April 1, 2007
    
    $
    1,806
    
    
    $
    68,003
    
    
    $
    242,304
    
    
    $
    (4,754
    )
    
    $
    (30,430
    )
    
    $
    276,929Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    6,413
    
    
    
    
    
    
    
    
    
    
    
    6,413Change in net unrealized
gains/(losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,080
    )
    
    
    
    
    
    
    (6,080
    )Change in Pension Liability
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    111
    
    
    
    
    
    
    
    111Total comprehensive income/(loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    444Cash dividends, $.43 per share
    
    
    
    
    
    
    
    
    
    
    (5,665
    )
    
    
    
    
    
    
    
    
    
    
    (5,665
    )Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,913
    )
    
    
    (1,913
    )Balance, June 30, 2007
    
    $
    1,806
    
    
    $
    68,003
    
    
    $
    243,052
    
    
    $
    (10,723
    )
    
    $
    (32,343
    )
    
    $
    269,795Balance, April 1, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    229,219
    
    
    $
    594
    
    
    $
    (27,456
    )
    
    $
    271,833Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    6,425
    
    
    
    
    
    
    
    
    
    
    
    6,425Change in net unrealized
gains/ (losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,226
    )
    
    
    
    
    
    
    (4,226
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,199Cash dividends, $.42 per share
    
    
    
    
    
    
    
    
    
    
    (5,573
    )
    
    
    
    
    
    
    
    
    
    
    (5,573
    )Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,383
    )
    
    
    (1,383
    )Balance, June 30, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    230,071
    
    
    $
    (3,632
    )
    
    $
    (28,839
    )
    
    $
    267,076
   5




---



##### 



AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Income/ (Loss)
    
    
    Stock
    
    
    TotalBalance, January 1, 2007
    
    $
    1,806
    
    
    $
    68,003
    
    
    $
    235,967
    
    
    $
    (5,494
    )
    
    $
    (29,022
    )
    
    $
    271,260Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    12,836
    
    
    
    
    
    
    
    
    
    
    
    12,836Change in net unrealized
gains/(losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,659
    )
    
    
    
    
    
    
    (5,659
    )Change in Pension Liability
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    430
    
    
    
    
    
    
    
    430Total comprehensive income/(loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,607Adoption of FIN 48
    
    
    
    
    
    
    
    
    
    
    (86
    )
    
    
    
    
    
    
    
    
    
    
    (86
    )Cash dividends, $.43 per share
    
    
    
    
    
    
    
    
    
    
    (5,665
    )
    
    
    
    
    
    
    
    
    
    
    (5,665
    )Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,321
    )
    
    
    (3,321
    )Balance, June 30, 2007
    
    $
    1,806
    
    
    $
    68,003
    
    
    $
    243,052
    
    
    $
    (10,723
    )
    
    $
    (32,343
    )
    
    $
    269,795Balance, January 1, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    223,710
    
    
    $
    1,903
    
    
    $
    (25,766
    )
    
    $
    269,323Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    11,934
    
    
    
    
    
    
    
    
    
    
    
    11,934Change in net unrealized
gains/(losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,535
    )
    
    
    
    
    
    
    (5,535
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,399Cash dividends, $.42 per share
    
    
    
    
    
    
    
    
    
    
    (5,573
    )
    
    
    
    
    
    
    
    
    
    
    (5,573
    )Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,073
    )
    
    
    (3,073
    )Balance, June 30, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    230,071
    
    
    $
    (3,632
    )
    
    $
    (28,839
    )
    
    $
    267,076
   6




---



##### 



Six Months EndedJune 30,2007
    
    
    2006(Unaudited)CASH FLOWS FROM OPERATING ACTIVITIES:Net Income
    
    $
    12,836
    
    
    $
    11,934Adjustments to reconcile net income to net cash
provided by operating activities:Net amortization (accretion) of premiums and discounts on investments
    
    
    (1,285
    )
    
    
    (1,246
    )Provision for loan losses
    
    
    2,930
    
    
    
    2,848Securities (gains) losses
    
    
    (20
    )
    
    
    (9
    )Gain on sale of other real estate
    
    
    (34
    )
    
    
    Depreciation and amortization
    
    
    1,767
    
    
    
    1,771Other, net
    
    
    720
    
    
    
    5,878NET CASH FROM OPERATING ACTIVITIES
    
    
    16,914
    
    
    
    21,176CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sales of securities available-for-sale
    
    
    2,939
    
    
    
    737Calls, maturities and principal reductions on securities available-for-sale
    
    
    44,472
    
    
    
    87,485Purchases of securities available-for-sale
    
    
    (95,503
    )
    
    
    (122,300
    )Loans made to customers, net of repayments
    
    
    (23,671
    )
    
    
    5,004Proceeds from sales of other real estate owned
    
    
    1,510
    
    
    
    Net change in federal funds sold
    
    
    8,668
    
    
    
    (3,708
    )Additions to premises and equipment
    
    
    (938
    )
    
    
    (2,046
    )NET CASH FROM INVESTING ACTIVITIES
    
    
    (62,523
    )
    
    
    (34,828
    )CASH FLOWS FROM FINANCING ACTIVITIES:Net change in deposits
    
    
    8,136
    
    
    
    34,556Net change in short-term borrowings
    
    
    15,422
    
    
    
    12,715Dividends paid
    
    
    (5,708
    )
    
    
    (5,603
    )Purchase of treasury stock
    
    
    (3,321
    )
    
    
    (3,073
    )Proceeds for other borrowings
    
    
    81,000
    
    
    
    Repayments on other borrowings
    
    
    (56,528
    )
    
    
    (297
    )NET CASH FROM FINANCING ACTIVITIES
    
    
    39,001
    
    
    
    38,298NET CHANGE IN CASH AND CASH EQUIVALENTS
    
    
    (6,608
    )
    
    
    24,646CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    77,682
    
    
    
    78,201CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    71,074
    
    
    $
    102,847
   7




---



##### 



(000's)June 30,
    
    
    December 31,2007
    
    
    2006Impaired loans with no related allowance for loan losses
    
    $
    0
    
    
    $
    503Impaired loans with related allowance for loan losses calculated under SFAS No. 114
    
    
    2,780
    
    
    
    4,865$
    2,780
    
    
    $
    5,368
  Securities
  (000's)
    
    
    (000's)June 30, 2007
    
    
    December 31, 2006Amortized Cost
    
    
    Fair Value
    
    
    Amortized Cost
    
    
    Fair ValueUnited States Government entity mortgage-
backed securities
    
    $
    356,385
    
    
    $
    346,978
    
    
    $
    334,383
    
    
    $
    330,846Collateralized Mortgage Obligations
    
    
    26,567
    
    
    
    26,149
    
    
    
    9,935
    
    
    
    9,970State and Municipal Obligations
    
    
    146,916
    
    
    
    147,887
    
    
    
    136,124
    
    
    
    140,070Corporate Obligations
    
    
    68,841
    
    
    
    69,156
    
    
    
    68,952
    
    
    
    69,472Equity Securities
    
    
    4,637
    
    
    
    8,848
    
    
    
    4,556
    
    
    
    8,695$
    603,346
    
    
    $
    599,018
    
    
    $
    553,950
    
    
    $
    559,053
 Short-Term Borrowings
  (000's)June 30,
    
    
    December 31,2007
    
    
    2006Federal Funds Purchased
    
    $
    8,465
    
    
    $
    10,179Repurchase Agreements
    
    
    22,671
    
    
    
    5,407Note Payable  U.S. Government
    
    
    489
    
    
    
    617$
    31,625
    
    
    $
    16,203
  8




---



##### 



Other Borrowings
  (000's)June 30,
    
    
    December 31,2007
    
    
    2006FHLB advances
    
    $
    359,677
    
    
    $
    335,205City of Terre Haute, Indiana economic development revenue bonds
    
    
    6,600
    
    
    
    6,600$
    366,277
    
    
    $
    341,805
 Components of Net Periodic Benefit Cost
 Three Months ended June 30
    
    
    Six Months ended June 30,(000's)
    
    
    (000's)Post-Retirement
    
    
    
    
    
    
    
    
    
    
    Post-RetirementPension Benefits
    
    
    Health Benefits
    
    
    Pension Benefits
    
    
    Health Benefits2007
    
    
    2006
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Service cost
    
    $
    787
    
    
    $
    751
    
    
    $
    29
    
    
    $
    29
    
    
    $
    1,574
    
    
    $
    1,502
    
    
    $
    59
    
    
    $
    58Interest cost
    
    
    704
    
    
    
    593
    
    
    
    78
    
    
    
    75
    
    
    
    1,409
    
    
    
    1,187
    
    
    
    156
    
    
    
    51Expected return on plan assets
    
    
    (911
    )
    
    
    (698
    )
    
    
    
    
    
    
    
    
    
    
    (1,822
    )
    
    
    (1,397
    )
    
    
    
    
    
    
    Amortization of transition obligation
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    15
    
    
    
    
    
    
    
    
    
    
    
    30
    
    
    
    30Amortization of prior service cost
    
    
    14
    
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    28
    
    
    
    28
    
    
    
    
    
    
    
    Amortization of net (gain) loss
    
    
    111
    
    
    
    191
    
    
    
    43
    
    
    
    60
    
    
    
    223
    
    
    
    381
    
    
    
    86
    
    
    
    120Net Periodic Benefit Cost
    
    $
    705
    
    
    $
    851
    
    
    $
    165
    
    
    $
    179
    
    
    $
    1,412
    
    
    $
    1,701
    
    
    $
    331
    
    
    $
    350
 Employer Contributions
  7. New accounting standards
        9




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##### 



Managements Discussion and Analysis of Financial Condition and Results of
Operations and Quantitative and Qualitative Disclosures About Market Risk
 
   Critical Accounting Policies
  Summary of Operating Results
   Net Interest Income
  Non-Interest Income
   10




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##### 



Non-Interest Expenses
  Allowance for Loan Losses
  Non-performing Loans
  (000's)June 30, 2007
    
    
    December 31, 2006Non-accrual loans
    
    $
    8,839
    
    
    $
    9,893Restructured loans
    
    
    51
    
    
    
    528,890
    
    
    
    9,945Accruing loans past due over 90 days
    
    
    3,706
    
    
    
    4,691$
    12,596
    
    
    $
    14,636Ratio of the allowance for loan losses
as a percentage of non-performing loans
    
    
    122
    %
    
    
    110
    %
  (000's)June 30, 2007
    
    
    December 31, 2006Non-Accrual Loans:1-4 family residential
    
    $
    1,389
    
    
    $
    1,598Commercial loans
    
    
    5,839
    
    
    
    6,551Installment loans
    
    
    1,611
    
    
    
    1,744$
    8,839
    
    
    $
    9,893Past due 90 days or more:1-4 family residential
    
    $
    1,064
    
    
    $
    1,607Commercial loans
    
    
    1,534
    
    
    
    2,542Installment loans
    
    
    1,108
    
    
    
    542$
    3,706
    
    
    $
    4,691
 Interest Rate Sensitivity and Liquidity
      11




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##### 



Basis Point
    
    Percentage Change in Net Interest IncomeInterest Rate Change
    
    12 months
    
    
    24 months
    
    
    36 monthsDown 200
    
    
    2.97
    
    
    
    -.20
    
    
    
    -3.37Down 100
    
    
    1.73
    
    
    
    .21
    
    
    
    -1.38Up 100
    
    
    -3.46
    
    
    
    -1.94
    
    
    
    -.07Up 200
    
    
    -9.16
    
    
    
    -6.41
    
    
    
    -2.45
  Liquidity Risk
  Financial Condition
  Capital Adequacy
  To Be WellJune 30, 2007
    
    
    December 31, 2006
    
    
    CapitalizedTotal risk-based capital ratioCorporation
    
    
    17.85
    %
    
    
    17.78
    %
    
    
    N/AFirst Financial Bank
    
    
    17.98
    %
    
    
    17.74
    %
    
    
    10.00
    %Tier I risk-based capital ratioCorporation
    
    
    16.89
    %
    
    
    16.77
    %
    
    
    N/AFirst Financial Bank
    
    
    17.18
    %
    
    
    16.90
    %
    
    
    6.00
    %Tier I leverage capital ratioCorporation
    
    
    12.40
    %
    
    
    12.43
    %
    
    
    N/AFirst Financial Bank
    
    
    12.59
    %
    
    
    12.48
    %
    
    
    5.00
    %
  12




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##### 



Controls and Procedures
  
 PART II  Other Information
 
   
   
  (a)
    
    None.(b)
    
    Not applicable.(c)
    
    Purchases of Equity Securities
  (c)Total Number OfShares Purchased As
    
    (d)(a)
    
    (b)
    
    Part Of Publicly
    
    Maximum Number OfTotal Number Of
    
    Average Price
    
    Announced Plans Or
    
    Shares That May YetShares Purchased
    
    Paid Per Share
    
    Programs *
    
    Be Purchased *April 1 - 30 2007
    
    
    10,000
    
    
    
    31.50
    
    
    
    N/A
    
    
    
    N/AMay 1  31, 2007
    
    
    34,500
    
    
    
    29.80
    
    
    
    N/A
    
    
    
    N/AJune 1  30, 2007
    
    
    20,000
    
    
    
    28.52
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    64,500
    
    
    
    29.66
    
    
    
    N/A
    
    
    
    N/A
 *
    
    The Corporation has not adopted a formal policy or program regarding repurchases of its shares of stock.
 
   
 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 18, 2007.
 (b)
    
    The following were elected Directors of the Corporation for a three year term as
follows:
 Votes for
    
    Votes AgainstDonald E. Smith
    
    
    9,119,414
    
    
    
    97,381Ronald K. Rich
    
    
    9,122,074
    
    
    
    94,721W. Curtis Brighton
    
    
    9,139,592
    
    
    
    77,203
   
    13




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##### 



Exhibit No:
    
    Description of Exhibit:3.1
    
    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, 2002.3.2
    
    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,
2002.10.1
    
    Employment Agreement for Norman L. Lowery, dated March 29, 2006 and effective
January 1, 2006, incorporated by reference to Exhibit 10.1 to the Corporations
Form 10-Q filed for the quarter ended June 30, 2006.10.2
    
    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, 2002.10.3
    
    2007 Schedule of Director Compensation, incorporated by reference to Exhibit
10.3 of the Corporations Form 10-K filed for the fiscal year ended December 31, 2006.10.4
    
    2007 Schedule of Named Executive Officer Compensation, incorporated by
reference to the Corporations Form 8-K filed on December 22, 2006.31.1
    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended June 30, 2007 by Principal Executive Officer, dated August 7, 200731.2
    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended June 30, 2007 by Principal Financial Officer, dated August 7, 2007.32.1
    
    Certification, dated August 7, 2007, of Principal Executive Officer and
Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005
on Form 10-Q for the quarter ended June 30, 2007.
  14




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##### 



FIRST FINANCIAL CORPORATION(Registrant)Date: August 7, 2007
    
    By
    
    /s/ Donald E. SmithDonald E. Smith, ChairmanDate: August 7, 2007
    
    By
    
    /s/ Norman L. LoweryNorman L. Lowery, Vice Chairman and CEODate: August 7, 2007
    
    By
    
    /s/ Michael A. CartyMichael A. Carty, Treasurer and CFO
  15




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##### 



Exhibit Index
 Exhibit No:
    
    Description of Exhibit:3.1
    
    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, 2002.3.2
    
    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,
2002.10.1
    
    Employment Agreement for Norman L. Lowery, dated March 29, 2006 and effective
January 1, 2006, incorporated by reference to Exhibit 10.1 to the Corporations
Form 10-Q filed for the quarter ended June 30, 2006.10.2
    
    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, 2002.10.3
    
    2007 Schedule of Director Compensation, incorporated by reference to Exhibit
10.3 of the Corporations Form 10-K filed for the fiscal year ended December 31, 2006.10.4
    
    2007 Schedule of Named Executive Officer Compensation, incorporated by
reference to the Corporations Form 8-K filed on December 22, 2006.31.1
    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended June 30, 2007 by Principal Executive Officer, dated August 7, 200731.2
    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended June 30, 2007 by Principal Financial Officer, dated August 7, 2007.32.1
    
    Certification, dated August 7, 2007, of Principal Executive Officer and
Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005
on Form 10-Q for the quarter ended June 30, 2007.
  16