##### Table of Contents



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 September 30, 2007
 Commission File Number 0-16759
 FIRST FINANCIAL CORPORATION
  INDIANA
    
    35-1546989(State or other jurisdiction
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 One First Financial Plaza, Terre Haute, IN
    
    47807(Address of principal executive office)
    
    (Zip Code)
 (Registrants telephone number, including area code)
 þ o
  o þ o
 o þ




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##### 



Page No.PART I. Financial InformationItem 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
    
    
    14Item 4.
Submission of Matters to a Vote of Security Holders
    
    
    14Item 5. Other Information
    
    
    14Item 6. Exhibits
    
    
    15Signatures
    
    
    16Exhibit 31.1Exhibit 31.2Exhibit 32.1
   2




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##### Table of Contents



Part I  Financial Information
 
   
   September 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCash and due from banks
    
    $
    59,090
    
    
    $
    77,682Federal funds sold and short-term investments
    
    
    725
    
    
    
    21,437Securities available-for-sale
    
    
    600,574
    
    
    
    559,053Loans:Commercial, financial and agricultural
    
    
    435,822
    
    
    
    407,995Real estate  construction
    
    
    30,271
    
    
    
    33,336Real estate  mortgage
    
    
    687,307
    
    
    
    691,989Installment
    
    
    273,074
    
    
    
    257,065Lease financing
    
    
    2,330
    
    
    
    2,6041,428,804
    
    
    
    1,392,989Less:Unearned income
    
    
    (227
    )
    
    
    (234
    )Allowance for loan losses
    
    
    (15,507
    )
    
    
    (16,169
    )1,413,070
    
    
    
    1,376,586Accrued interest receivable
    
    
    14,051
    
    
    
    13,972Premises and equipment, net
    
    
    32,640
    
    
    
    33,267Bank-owned life insurance
    
    
    59,438
    
    
    
    57,905Goodwill
    
    
    7,102
    
    
    
    7,102Other intangible assets
    
    
    2,044
    
    
    
    2,363Other real estate owned
    
    
    1,681
    
    
    
    3,194Other assets
    
    
    26,091
    
    
    
    23,437TOTAL ASSETS
    
    $
    2,216,506
    
    
    $
    2,175,998LIABILITIES AND SHAREHOLDERS EQUITYDeposits:Noninterest-bearing
    
    $
    227,303
    
    
    $
    227,808Interest-bearing:Certificates of deposit of $100 or more
    
    
    206,687
    
    
    
    189,323Other interest-bearing deposits
    
    
    1,061,951
    
    
    
    1,085,5511,495,941
    
    
    
    1,502,682Short-term borrowings
    
    
    59,364
    
    
    
    16,203Other borrowings
    
    
    341,048
    
    
    
    341,805Other liabilities
    
    
    41,745
    
    
    
    44,048TOTAL LIABILITIES
    
    
    1,938,098
    
    
    
    1,904,738Shareholders equityCommon stock, $.125 stated value per share;Authorized shares-40,000,000Issued shares-14,450,966Outstanding shares-13,105,359 in 2007 and 13,270,321 in 2006
    
    
    1,806
    
    
    
    1,806Additional paid-in capital
    
    
    68,003
    
    
    
    68,003Retained earnings
    
    
    249,414
    
    
    
    235,967Accumulated other comprehensive income (loss)
    
    
    (6,905
    )
    
    
    (5,494
    )Treasury shares at cost-1,345,607 in 2007 and 1,180,645 in 2006
    
    
    (33,910
    )
    
    
    (29,022
    )TOTAL SHAREHOLDERS EQUITY
    
    
    278,408
    
    
    
    271,260TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    2,216,506
    
    
    $
    2,175,998
   3




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##### Table of Contents



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)INTEREST INCOME:Loans, including related fees
    
    $
    26,661
    
    
    $
    25,390
    
    
    $
    78,263
    
    
    $
    74,203Securities:Taxable
    
    
    5,957
    
    
    
    5,488
    
    
    
    17,405
    
    
    
    16,355Tax-exempt
    
    
    1,694
    
    
    
    1,578
    
    
    
    4,876
    
    
    
    4,651Other
    
    
    603
    
    
    
    556
    
    
    
    2,197
    
    
    
    2,003TOTAL INTEREST INCOME
    
    
    34,915
    
    
    
    33,012
    
    
    
    102,741
    
    
    
    97,212INTEREST EXPENSE:Deposits
    
    
    10,676
    
    
    
    9,693
    
    
    
    31,265
    
    
    
    27,251Short-term borrowings
    
    
    499
    
    
    
    254
    
    
    
    1,180
    
    
    
    539Other borrowings
    
    
    4,991
    
    
    
    4,821
    
    
    
    14,525
    
    
    
    14,271TOTAL INTEREST EXPENSE
    
    
    16,166
    
    
    
    14,768
    
    
    
    46,970
    
    
    
    42,061NET INTEREST INCOME
    
    
    18,749
    
    
    
    18,244
    
    
    
    55,771
    
    
    
    55,151Provision for loan losses
    
    
    1,575
    
    
    
    2,495
    
    
    
    4,505
    
    
    
    5,343NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
    
    
    17,174
    
    
    
    15,749
    
    
    
    51,266
    
    
    
    49,808NON-INTEREST INCOME:Trust department income
    
    
    926
    
    
    
    1,021
    
    
    
    2,846
    
    
    
    2,938Service charges and fees on deposit accounts
    
    
    3,062
    
    
    
    2,941
    
    
    
    8,803
    
    
    
    8,777Other service charges and fees
    
    
    1,492
    
    
    
    1,325
    
    
    
    4,259
    
    
    
    3,952Securities gains/(losses), net
    
    
    
    
    
    
    (1
    )
    
    
    20
    
    
    
    8Insurance commissions
    
    
    1,715
    
    
    
    1,608
    
    
    
    4,659
    
    
    
    4,461Gain on sale of mortgage loans
    
    
    211
    
    
    
    26
    
    
    
    615
    
    
    
    180Other
    
    
    429
    
    
    
    144
    
    
    
    2,309
    
    
    
    1,376TOTAL NON-INTEREST INCOME
    
    
    7,835
    
    
    
    7,064
    
    
    
    23,511
    
    
    
    21,692NON-INTEREST EXPENSES:Salaries and employee benefits
    
    
    9,606
    
    
    
    10,178
    
    
    
    29,173
    
    
    
    30,741Occupancy expense
    
    
    1,003
    
    
    
    983
    
    
    
    3,074
    
    
    
    2,868Equipment expense
    
    
    1,078
    
    
    
    1,043
    
    
    
    3,245
    
    
    
    3,211Other
    
    
    4,441
    
    
    
    3,466
    
    
    
    12,802
    
    
    
    11,277TOTAL NON-INTEREST EXPENSE
    
    
    16,128
    
    
    
    15,670
    
    
    
    48,294
    
    
    
    48,097INCOME BEFORE INCOME TAXES
    
    
    8,881
    
    
    
    7,143
    
    
    
    26,483
    
    
    
    23,403Provision for income taxes
    
    
    2,519
    
    
    
    1,688
    
    
    
    7,285
    
    
    
    6,014NET INCOME
    
    $
    6,362
    
    
    $
    5,455
    
    
    $
    19,198
    
    
    $
    17,389PER SHARE DATA:Basic and Diluted
    
    $
    0.48
    
    
    $
    0.41
    
    
    $
    1.45
    
    
    $
    1.31Dividends per share
    
    $
    
    
    
    $
    
    
    
    $
    0.43
    
    
    $
    0.42Weighted average number
of shares outstanding (in thousands)
    
    
    13,136
    
    
    
    13,261
    
    
    
    13,195
    
    
    
    13,302
   4




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##### Table of Contents



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
    
    
    
    
    
    
    
    
    
    
    19,198
    
    
    
    
    
    
    
    
    
    
    
    19,198Change in net unrealized
gains/(losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,951
    )
    
    
    
    
    
    
    (1,951
    )Change in Pension Liability
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    540
    
    
    
    
    
    
    
    540Total comprehensive income/(loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,787Adoption of FIN 48
    
    
    
    
    
    
    
    
    
    
    (86
    )
    
    
    
    
    
    
    
    
    
    
    (86
    )Cash dividends, $.43 per share
    
    
    
    
    
    
    
    
    
    
    (5,665
    )
    
    
    
    
    
    
    
    
    
    
    (5,665
    )Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,888
    )
    
    
    (4,888
    )Balance, September 30, 2007
    
    $
    1,806
    
    
    $
    68,003
    
    
    $
    249,414
    
    
    $
    (6,905
    )
    
    $
    (33,910
    )
    
    $
    278,408Balance, January 1, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    223,710
    
    
    $
    1,903
    
    
    $
    (25,766
    )
    
    $
    269,323Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    17,389
    
    
    
    
    
    
    
    
    
    
    
    17,389Change in net unrealized
gains/(losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (226
    )
    
    
    
    
    
    
    (226
    )Total comprehensive income/(loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,163Cash dividends, $.42 per share
    
    
    
    
    
    
    
    
    
    
    (5,573
    )
    
    
    
    
    
    
    
    
    
    
    (5,573
    )Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,422
    )
    
    
    (3,422
    )Balance, September 30, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    235,526
    
    
    $
    1,677
    
    
    $
    (29,188
    )
    
    $
    277,491
   5




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##### Table of Contents



AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Income/ (Loss)
    
    
    Stock
    
    
    TotalBalance, July 1, 2007
    
    $
    1,806
    
    
    $
    68,003
    
    
    $
    243,052
    
    
    $
    (10,723
    )
    
    $
    (32,343
    )
    
    $
    269,795Comprehensive income:
    
    
    
    
    
    
    
    
    
    
    6,362
    
    
    
    
    
    
    
    
    
    
    
    6,362Change in net unrealized
gains/(losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,708
    
    
    
    
    
    
    
    3,708Change in Pension Liability
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    110
    
    
    
    
    
    
    
    110Total comprehensive income/(loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,180Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,567
    )
    
    
    (1,567
    )Balance, September 30, 2007
    
    $
    1,806
    
    
    $
    68,003
    
    
    $
    249,414
    
    
    $
    (6,905
    )
    
    $
    (33,910
    )
    
    $
    278,408Balance, July 1, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    230,071
    
    
    $
    (3,632
    )
    
    $
    (28,839
    )
    
    $
    267,076Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    5,455
    
    
    
    
    
    
    
    
    
    
    
    5,455Change in net unrealized
gains/(losses) on securities
available-for-sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,309
    
    
    
    
    
    
    
    5,309Total comprehensive income/(loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,764Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (349
    )
    
    
    (349
    )Balance, September 30, 2006
    
    $
    1,806
    
    
    $
    67,670
    
    
    $
    235,526
    
    
    $
    1,677
    
    
    $
    (29,188
    )
    
    $
    277,491
   6




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##### Table of Contents



Nine Months EndedSeptember 30,2007
    
    
    2006(Unaudited)CASH FLOWS FROM OPERATING ACTIVITIES:Net Income
    
    $
    19,198
    
    
    $
    17,389Adjustments to reconcile net income to net cash
provided by operating activities:Net amortization (accretion) of premiums and discounts on investments
    
    
    (1,941
    )
    
    
    (1,894
    )Provision for loan losses
    
    
    4,505
    
    
    
    5,343Securities (gains) losses
    
    
    (20
    )
    
    
    (8
    )Gain on sale of other real estate
    
    
    (163
    )
    
    
    Depreciation and amortization
    
    
    2,600
    
    
    
    2,646Other, net
    
    
    (5,497
    )
    
    
    (478
    )NET CASH FROM OPERATING ACTIVITIES
    
    
    18,682
    
    
    
    22,998CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sales of securities available-for-sale
    
    
    2,939
    
    
    
    737Calls, maturities and principal reductions on securities available-for-sale
    
    
    67,929
    
    
    
    124,118Purchases of securities available-for-sale
    
    
    (113,680
    )
    
    
    (144,942
    )Loans made to customers, net of repayments
    
    
    (47,987
    )
    
    
    (6,257
    )Proceeds from sales of other real estate owned
    
    
    3,400
    
    
    
    Net change in federal funds sold
    
    
    20,712
    
    
    
    2,902Additions to premises and equipment
    
    
    (1,654
    )
    
    
    (2,257
    )NET CASH FROM INVESTING ACTIVITIES
    
    
    (62,341
    )
    
    
    (25,699
    )CASH FLOWS FROM FINANCING ACTIVITIES:Net change in deposits
    
    
    (6,741
    )
    
    
    12,684Net change in short-term borrowings
    
    
    43,161
    
    
    
    (9,210
    )Dividends paid
    
    
    (5,708
    )
    
    
    (5,603
    )Purchase of treasury stock
    
    
    (4,888
    )
    
    
    (3,422
    )Proceeds for other borrowings
    
    
    81,000
    
    
    
    Repayments on other borrowings
    
    
    (81,757
    )
    
    
    (2,049
    )NET CASH FROM FINANCING ACTIVITIES
    
    
    25,067
    
    
    
    (7,600
    )NET CHANGE IN CASH AND CASH EQUIVALENTS
    
    
    (18,592
    )
    
    
    (10,301
    )CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    77,682
    
    
    
    78,201CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    59,090
    
    
    $
    67,900
   7




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##### Table of Contents



(000s)September 30,
    
    
    December 31,2007
    
    
    2006Impaired loans with no related allowance for loan losses
    
    $
    
    
    
    $
    503Impaired loans with related allowance for loan losses calculated under SFAS No. 114
    
    $
    2,737
    
    
    
    4,865$
    2,737
    
    
    $
    5,368
  Securities
  (000s)
    
    
    (000s)September 30, 2007
    
    

December 31, 2006Amortized Cost
    
    
    Fair Value
    
    
    Amortized Cost
    
    
    Fair ValueUnited States Government entity mortgage-
backed securities
    
    $
    350,934
    
    
    $
    347,090
    
    
    $
    334,383
    
    
    $
    330,846Collateralized Mortgage Obligations
    
    
    26,418
    
    
    
    26,263
    
    
    
    9,935
    
    
    
    9,970State and Municipal Obligations
    
    
    149,390
    
    
    
    151,651
    
    
    
    136,124
    
    
    
    140,070Corporate Obligations
    
    
    67,299
    
    
    
    67,370
    
    
    
    68,952
    
    
    
    69,472Equity Securities
    
    
    4,678
    
    
    
    8,200
    
    
    
    4,556
    
    
    
    8,695$
    598,719
    
    
    $
    600,574
    
    
    $
    553,950
    
    
    $
    559,053
 Short-Term Borrowings
  (000s)September 30,
    
    
    December 31,2007
    
    
    2006Federal Funds Purchased
    
    $
    35,013
    
    
    $
    10,179Repurchase Agreements
    
    
    22,672
    
    
    
    5,407Note Payable  U.S. Government
    
    
    1,679
    
    
    
    617$
    59,364
    
    
    $
    16,203
  8




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##### Table of Contents



Other Borrowings
  (000s)September 30,
    
    
    December 31,2007
    
    

2006FHLB advances
    
    $
    334,448
    
    
    $
    335,205City of Terre Haute, Indiana economic development revenue bonds
    
    
    6,600
    
    
    
    6,600$
    341,048
    
    
    $
    341,805
 Components of Net Periodic Benefit Cost
 Three Months ended September 30
    
    
    Nine Months ended September 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
    
    
    $
    2,361
    
    
    $
    2,254
    
    
    $
    88
    
    
    $
    87Interest cost
    
    
    704
    
    
    
    593
    
    
    
    78
    
    
    
    75
    
    
    
    2,113
    
    
    
    1,780
    
    
    
    234
    
    
    
    226Expected return on plan assets
    
    
    (911
    )
    
    
    (698
    )
    
    
    
    
    
    
    
    
    
    
    (2,733
    )
    
    
    (2,095
    )
    
    
    
    
    
    
    Amortization of transition obligation
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    15
    
    
    
    
    
    
    
    
    
    
    
    45
    
    
    
    45Amortization of prior service cost
    
    
    14
    
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    42
    
    
    
    42
    
    
    
    
    
    
    
    Amortization of net (gain) loss
    
    
    111
    
    
    
    191
    
    
    
    43
    
    
    
    60
    
    
    
    334
    
    
    
    572
    
    
    
    129
    
    
    
    180Net Periodic Benefit Cost
    
    $
    705
    
    
    $
    851
    
    
    $
    165
    
    
    $
    179
    
    
    $
    2,117
    
    
    $
    2,553
    
    
    $
    496
    
    
    $
    538
 Employer Contributions
  7. New accounting standards
        9




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##### Table of Contents



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
   10




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##### Table of Contents



Non-Interest Income
  Non-Interest Expenses
  Allowance for Loan Losses
  Non-performing Loans
  (000s)September 30, 2007
    
    
    December 31, 2006Non-accrual loans
    
    $
    9,082
    
    
    $
    9,893Restructured loans
    
    
    51
    
    
    
    529,133
    
    
    
    9,945Accruing loans past due over 90 days
    
    
    3,225
    
    
    
    4,691$
    12,358
    
    
    $
    14,636Ratio of the allowance for loan losses
as a percentage of non-performing loans
    
    
    125
    %
    
    
    110
    %The following loan categories comprise significant components of the nonperforming loans:(000s)September 30, 2007
    
    
    December 31, 2006Non-Accrual Loans:1-4 family residential
    
    $
    1,977
    
    
    $
    1,598Commercial loans
    
    
    5,631
    
    
    
    6,551Installment loans
    
    
    1,474
    
    
    
    1,744$
    9,082
    
    
    $
    9,893Past due 90 days or more:1-4 family residential
    
    $
    1,233
    
    
    $
    1,607Commercial loans
    
    
    1,192
    
    
    
    2,542Installment loans
    
    
    800
    
    
    
    542$
    3,225
    
    
    $
    4,691
  11




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##### Table of Contents



Interest Rate Sensitivity and Liquidity
       Basis Point
    
    Percentage Change in Net Interest IncomeInterest Rate Change
    
    12 months
    
    
    24 months
    
    
    36 monthsDown 200
    
    
    1.12
    
    
    
    -1.12
    
    
    
    -4.44Down 100
    
    
    0.83
    
    
    
    -0.30
    
    
    
    -2.01Up 100
    
    
    -2.38
    
    
    
    -1.27
    
    
    
    .67Up 200
    
    
    -6.99
    
    
    
    -5.03
    
    
    
    -0.73
  Liquidity Risk
  Financial Condition
  Capital Adequacy
   12




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##### Table of Contents



To Be WellSeptember 30, 2007
    
    
    December 31, 2006
    
    
    CapitalizedTotal risk-based capital ratioCorporation
    
    
    18.15
    %
    
    
    17.78
    %
    
    
    N/AFirst Financial Bank
    
    
    18.25
    %
    
    
    17.74
    %
    
    
    10.00
    %Tier I risk-based capital ratioCorporation
    
    
    17.18
    %
    
    
    16.77
    %
    
    
    N/AFirst Financial Bank
    
    
    17.44
    %
    
    
    16.90
    %
    
    
    6.00
    %Tier I leverage capital ratioCorporation
    
    
    12.58
    %
    
    
    12.43
    %
    
    
    N/AFirst Financial Bank
    
    
    12.54
    %
    
    
    12.48
    %
    
    
    5.00
    %
 
 Controls and Procedures
  
 PART II  Other Information
 
   
  Form 10-K.
 
      (c)Total Number Of
    
    
    (d)(a)
    
    
    (b)
    
    
    Shares Purchased As Part
    
    
    Maximum Number OfTotal Number Of
    
    
    Average Price
    
    
    Of Publicly Announced
    
    
    Shares That May Yet BeShares Purchased
    
    
    Paid Per Share
    
    
    Plans Or Programs *
    
    
    Purchased *July 1  31 2007
    
    
    15,000
    
    
    
    27.95
    
    
    
    N/A
    
    
    
    N/AAugust 1  31, 2007
    
    
    20,000
    
    
    
    25.80
    
    
    
    N/A
    
    
    
    N/ASeptember 1  30, 2007
    
    
    21,462
    
    
    
    30.07
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    56,462
    
    
    
    27.99
    
    
    
    N/A
    
    
    
    N/A
 
 *
    
    The Corporation has not adopted a formal policy or program regarding repurchases of its
shares of stock.  13




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##### Table of Contents



14




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##### Table of Contents



Exhibits.
 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 August 29, 2007 and effective
January 1, 2007, incorporated by reference to Exhibit 10.1 to the Corporations Form
8-K filed September 4, 2007.10.2
    

    
    2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by
reference to Exhibit 10.7 of the Corporations Form 8-K filed September 4, 2007.10.3
    

    
    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, 2006.10.5
    

    
    2005 Executives Deferred Compensation Plan, incorporated by reference to
Exhibit 10.5 of the Corporations Form 8-K filed September 4, 2007.10.6
    

    
    2005 Executives Supplemental Retirement Plan, incorporated by reference to
Exhibit 10.6 of the Corporations Form 8-K filed September 4, 2007.31.1
    

    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended September 30, 2007 by Principal Executive Officer, dated November 7, 200731.2
    

    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended September 30, 2007 by Principal Financial Officer, dated November 7,
2007.32.1
    

    
    Certification, dated November 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 September 30, 2007.
 
  15




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##### Table of Contents



FIRST FINANCIAL CORPORATION(Registrant)Date: November 7, 2007
    By
    /s/ Donald E. SmithDonald E. Smith, ChairmanDate: November 7, 2007
    By
    /s/ Norman L. LoweryNorman L. Lowery, Vice Chairman and CEODate: November 7, 2007
    By
    /s/ Michael A. CartyMichael A. Carty, Treasurer and CFO  16




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##### Table of Contents



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 August 29, 2007 and effective
January 1, 2007, incorporated by reference to Exhibit 10.1 to the Corporations Form
8-K filed September 4, 2007.10.2
    
    
    2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by
reference to Exhibit 10.7 of the Corporations Form 8-K filed September 4, 2007.10.3
    
    
    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, 2006.10.5
    
    
    2005 Executives Deferred Compensation Plan, incorporated by reference to
Exhibit 10.5 of the Corporations Form 8-K filed September 4, 2007.10.6
    
    
    2005 Executives Supplemental Retirement Plan, incorporated by reference to
Exhibit 10.6 of the Corporations Form 8-K filed September 4, 2007.31.1
    
    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended September 30, 2007 by Principal Executive Officer, dated November 7, 200731.2
    
    
    Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the
quarter ended September 30, 2007 by Principal Financial Officer, dated November 7,
2007.32.1
    
    
    Certification, dated November 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 September 30, 2007.
 
  17