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

                                 September 30, 2000

                                       <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 September 30, 2000

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 September 30, 2000 were outstanding 6,694,237 shares without par value, of
the registrant.
                                     1 <PAGE>


                            FIRST FINANCIAL CORPORATION

                                      FORM 10-Q

                                        INDEX


PART I.   Financial Information
                                                                      Page No.

     Item 1.  Financial Statements:


          Consolidated Statements of Condition.............................3

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

          Consolidated Statements of Shareholders' Equity and
            Comprehensive Income...........................................5

          Consolidated Statements of Cash Flows............................7

          Notes to Consolidated Financial Statements.......................8

     Item 2.  Management's Discussion and Analysis of Financial
                Condition and Results of Operations.......................10

PART II.  Other Information:


     Signatures...........................................................14

                                        2 <PAGE>


                             FIRST FINANCIAL CORPORATION
                        CONSOLIDATED STATEMENTS OF CONDITION
                (Dollar amounts in thousands, except per share data)

                                                September 30,      December 31,
                                                    2000               1999
                                                 (Unaudited)
               ASSETS
Cash and due from banks                            $75,310            $58,075
Federal funds sold and short-term investments            0                190
Securities, available-for-sale                     581,351            594,319
Loans:
  Commercial, financial and agricultural           272,949            247,949
  Real estate - construction                        47,392             44,782
  Real estate - mortgage                           732,335            671,972
  Installment                                      232,197            223,459
  Lease financing                                    4,894              5,723
                                                 1,289,767          1,193,885
  Less:
    Unearned income                                   -858             -1,987
    Allowance for loan losses                      -19,367            -17,949
                                                 1,269,542          1,173,949
Accrued interest receivable                         17,194             14,703
Premises and equipment, net                         26,195             26,095
Other assets                                        29,692             37,870
   TOTAL ASSETS                                 $1,999,284         $1,905,201

   LIABILITIES AND SHAREHOLDERS'
Deposits:
  Noninterest-bearing                             $141,764           $148,230
  Interest-bearing:
    Certificates of deposit of $100 or more        235,490            218,515
    Other interest-bearing deposits                904,601            889,370
                                                 1,281,855          1,256,115

Short-term borrowings                               73,464             63,499
Other borrowings                                   445,226            382,322
Other liabilities                                   16,902             34,583
   TOTAL LIABILITIES                             1,817,447          1,736,519

Shareholders' equity:
Common stock, $.125 stated value per share;
  Authorized shares--40,000,000
  Issued shares--7,225,483 shares
    in 2000 and 1999
  Outstanding shares--6,694,237 in 2000
    and 6,845,418 in 1999                              903                903
Additional capital                                  66,680             66,680
Retained earnings                                  139,659            125,680
Accumulated other comprehensive income/(loss):
Unrealized gains/(losses) on
  investments, net of tax                           -3,492             -7,819
Treasury shares at cost--531,246 in 2000
  and 380,065 in 1999                              -21,913            -16,762

   TOTAL SHAREHOLDERS' EQUITY                      181,837            168,682

   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $1,999,284         $1,905,201

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

                                    3 <PAGE>


                              FIRST FINANCIAL CORPORATION
                           CONSOLIDATED STATEMENTS OF INCOME

                                 Three Months Ended         Nine Months Ended
                                    September 30,              September 30,
                                  2000        1999           2000        1999
                                Unaudited   Unaudited      Unaudited   Unaudited
                         (Dollar amounts in thousands, except per share amounts)
INTEREST INCOME:
  Loans                          $27,374     $24,772       $78,932     $71,887
  Securities:
    Taxable                        7,627       7,104        23,104      21,329
    Tax-exempt                     2,085       2,001         6,289       6,030
                                   9,712       9,105        29,393      27,359
Other interest income                 48          23           246         505
TOTAL INTEREST INCOME             37,134      33,900       108,571      99,751

INTEREST EXPENSE:
  Deposits                        12,721      11,197        35,840      33,853
  Other                            8,210       5,495        22,717      15,450
TOTAL INTEREST EXPENSE            20,931      16,692        58,557      49,303

NET INTEREST INCOME               16,203      17,208        50,014      50,448

Provision for loan losses          1,140       1,084         3,189       3,644

NET INTEREST INCOME AFTER
  PROVISION FOR LOAN LOSSES       15,063      16,124        46,825      46,804
NONINTEREST INCOME
  Trust department                   653         646         2,091       1,972
  Service charges and fees
    on deposits                    1,193       1,009         3,468       2,859
  Investment security
    gains/(losses)                   -42          37           101         194
  Other                            2,040         958         4,325       3,396
                                   3,844       2,650         9,985       8,421
NONINTEREST EXPENSES
  Salaries and employee benefits   5,786       6,252        17,665      18,511
  Occupancy expense                  768         726         2,232       2,192
  Equipment expense                  943         941         2,752       2,689
  Other                            3,099       3,035         9,433       9,441
                                  10,596      10,954        32,082      32,833
INCOME BEFORE INCOME TAXES
  EXPENSE                          8,311       7,820        24,728      22,392
Income Tax Expense                 2,337       2,300         7,258       6,494
  NET INCOME                      $5,974      $5,520       $17,470     $15,898

EARNINGS PER SHARE:
  NET INCOME                       $0.89       $0.80         $2.59       $2.28

Weighted average number of
  shares outstanding               6,696       6,942         6,742       6,988

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

                                      4 <PAGE>

<TABLE>
                            FIRST FINANCIAL CORPORATION
                  CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                             AND COMPREHENSIVE INCOME
                                Three Months Ended
                           September 30, 2000 and 1999
<CAPTION>
                                                                  Accumulated
                                                                     Other
(Dollar amounts in thousands,   Common   Additional   Retained   Comprehensive   Treasury
except per share data)          Stock      Capital    Earnings   Income/(Loss)     Stock       Total
<S>                           <C>      <C>         <C>           <C>          <C>         <C>
Balance, July 1, 2000            $903     $66,680     $133,685       $-7,287     $-21,724    $172,257
Comprehensive income:
  Net income                                             5,974                                  5,974
  Change in net unrealized
    gains/(losses) on securities,
    net of tax                                                         3,795                    3,795
  Total comprehensive income                                                                    9,769

Treasury stock purchase                                                              -189        -189
                                 ____________________________________________________________________
Balance, September 30, 2000      $903     $66,680     $139,659       $-3,492     $-21,913    $181,837


Balance, July  1, 1999           $903     $66,680     $117,875       $-1,541     $-11,849    $172,068
Comprehensive income:
  Net income                                             5,520                                  5,520
  Change in net unrealized
    gains/(losses) on securities,
    net of tax                                                        -3,278                   -3,278
  Total comprehensive income                                                                    2,242

Treasury stock purchase                                                            -2,047      -2,047
                                 ____________________________________________________________________
Balance, September 30, 1999      $903     $66,680     $123,395       $-4,819     $-13,896    $172,263

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

                                           5 <PAGE>


                            FIRST FINANCIAL CORPORATION
                  CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                             AND COMPREHENSIVE INCOME
                                Nine Months Ended
                           September 30, 2000 and 1999

                                                                  Accumulated
                                                                     Other
(Dollar amounts in thousands,   Common   Additional   Retained   Comprehensive   Treasury
except per share data)          Stock      Capital    Earnings   Income/(Loss)     Stock       Total

Balance, January 1, 2000         $903     $66,680     $125,680       $-7,819     $-16,762    $168,682
Comprehensive income:
  Net income                                            17,470                                 17,470
  Change in net unrealized
    gains/(losses) on securities,
    net of tax                                                         4,327                    4,327
  Total comprehensive income                                                                   21,797

Cash dividends, $.52 per share                          -3,491                                 -3,491
Treasury stock purchase                                                            -5,151      -5,151
                                 ____________________________________________________________________
Balance, September 30, 2000      $903     $66,680     $139,659       $-3,492     $-21,913    $181,837


Balance, January 1, 1999         $903     $66,680     $110,566        $8,123      $-4,089    $182,183
Comprehensive income:
  Net income                                            15,898                                 15,898
  Change in net unrealized
    gains/(losses) on securities,
    net of tax                                                       -12,942                  -12,942
  Total comprehensive income                                                                    2,956

Cash dividends, $.44 per share                          -3,069                                 -3,069
Treasury stock purchase                                                            -9,807      -9,807
                                 ____________________________________________________________________
Balance, September 30, 1999      $903     $66,680     $123,395       $-4,819     $-13,896    $172,263

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


                              FIRST FINANCIAL CORPORATION
                         CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                         Nine Months Ended
                                                            September 30,
                                                        2000            1999
                                                     (Unaudited)
                                                   (Dollar amounts in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income                                            $17,470         $15,898
Adjustment to reconcile net income to net cash
  provided by operating activities:
    Net amortization of discounts on investments       -1,668             161
    Provision for loan losses                           3,189           3,644
    Securities gains                                     -101            -194
    Provision for depreciation and amortization         2,487           2,072
    Other, net                                        -11,789           1,135
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES        9,588          22,716

CASH FLOWS FROM INVESTING ACTIVITIES:

Sales of available-for-sale securities                 16,895          85,550
Maturities of available-for-sale securities            36,760         131,850
Purchases of available-for-sale securities            -32,260        -166,321
Loans made to customers, net of repayments            -98,003         -85,022
Net change in federal funds sold                          190          -3,750
Additions to premises and equipment                    -2,460          -2,729
NET CASH PROVIDED/(USED) BY INVESTING ACTIVITIES      -78,878         -40,422

CASH FLOWS FROM FINANCING ACTIVITIES:

Net change in deposits                                 25,740         -27,186
Net change in short-term borrowings                     9,965         -21,020
Minority interest investment in subsidiary                  0             400
Dividends paid                                         -6,933          -6,224
Purchase of treasury stock                             -5,151          -9,807
Proceeds from other borrowings                        386,287         224,167
Repayments on other borrowings                       -323,383        -138,753
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES       86,525          21,577

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   17,235           3,871
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD         58,075          54,877

CASH AND CASH EQUIVALENTS, END OF PERIOD              $75,310         $58,748

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the period for interest            $58,624         $49,508

  Income taxes paid                                    $8,153          $7,715

The accompanying notes are an integral part of the consolidated financial
statements.
                                         7 <PAGE>

                             FIRST FINANCIAL CORPORATION
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


The accompanying September 30, 2000 and 1999 consolidated financial statements
are unaudited.  The December 31, 1999 consolidated financial statements are as
reported in the First Financial Corporation (the Corporation) 1999 annual
report.  The following notes should be read together with notes to the
consolidated financial statements included in the 1999 annual report.

1.  The significant accounting policies followed by the 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 statement of the results for the
periods reported have been included in the accompanying consolidated financial
statements and are of a normal recurring nature.  The Corporation reports
financial information for only one segment, banking.

    SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities," establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in other
contracts and for hedging activities.  SFAS No. 133, which will be adopted by
the Corporation in 2001, is not anticipated to have a material impact on the
Corporation's financial position or results of operations.

2.  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.

The following table summarizes impaired loan information.

                                                           (000's)
                                                        September 30,
                                                      2000         1999

Impaired loans with related allowance for
  loan losses calculated under SFAS No. 114.......   $3,984       $2,176


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

3.  Securities
    The cost and fair value of the Corporation's investments at September 30,
2000 are shown below.  All securities are classified as available-for-sale.

                                                             (000's)
                                                       September 30, 2000
                                               Amortized Cost      Fair Value

United States Government                          $167,664          $163,250
United States Government Agencies                  200,818           195,653
State and Municipal                                165,185           165,635
Other                                               57,813            56,813
                                                  $591,480          $581,351

                                         8 <PAGE>


4.  Short-Term Borrowings
    Period-end short-term borrowings were comprised of the following:

                                                          (000's)
                                              September 30,      December 31,
                                                  2000               1999
    Federal Funds Purchased                     $60,576            $19,559
    Repurchase Agreements                         7,250             35,718
    Note Payable - U.S. Government                5,638              8,222
                                                $73,464            $63,499

5.  Other Borrowings
    Other borrowings at period end are summarized as follows:

                                                          (000's)
                                              September 30,      December 31,
                                                  2000               1999
    FHLB Advances                              $438,622           $375,713
    City of Terre Haute, Indiana
      Economic Development Revenue bonds          6,600              6,600
    Other                                             4                  9
                                               $445,226           $382,322

6.  Changes in Shareholders' Equity

Under the Corporation's common stock repurchase program announced in November,
1999, the Corporation has repurchased 531,246 shares as of September 30, 2000
compared to 380,065 shares as of December 31, 1999.

                                         9 <PAGE>


                                FIRST FINANCIAL CORPORATION


ITEM 2.  Management's Discussion and Analysis of Financial Condition and
  Results of Operations and Quantitative and Qualitative Disclosures
  About Market Risk

  The purpose of this discussion is to point out key factors in the
Corporation's recent performance compared with earlier periods.  The discussion
should be read in conjunction with the financial statements beginning on page
three of this report.  All figures are for the consolidated entities.  It is
presumed the readers of these financial statements and of the following
narrative have previously read the Corporation's annual report for 1999.

  Forward-looking statements contained in the following discussion are based on
estimates and assumptions that are subject to significant business, economic
and competitive uncertainties, many of which are beyond the Corporation's
control and are subject to change.  These uncertainties can affect actual
results and could cause actual results to differ materially from those expressed
in any forward-looking statements in this discussion.


                            Summary of Operating Results


  For the nine months ended September 30, 2000, net income increased to $17.5
million from $15.9 million, a 9.9% improvement from the same period in 1999.
Basic earnings per share increased to $2.59 for the first three quarters of 2000
compared to $2.28 for 1999, a 13.6% improvement.

  For the three months ended September 30, 2000, net income of $6.0 million was
8.2% higher than the $5.5 million reported in 1999 and earnings per share
increased to $.89, 11.3% higher than the $.80 reported for the third quarter
of 1999.

  The primary components of income and expense affecting net income are
discussed in the following analysis.

Net Interest Income

  The 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 paid for deposits and other sources of funds.  Net interest income
decreased to $50.0 million in the first nine months of 2000 from $50.4 million
in the same period of 1999.  This decrease was the result of an inverted yield
curve and the purchase of treasury shares.

  The inverted yield curve has resulted in the Corporation paying higher rates
to obtain the short-term liabilities which have been necessary to fund growth.
During the nine months ended September 30, 2000, loans increased $95.9 million
and total assets climbed 4.9% to $1.99 billion while deposits increased 2.0% or
$25.7 million.  Also, through the nine months ended September, 30, 2000, the
Corporation has purchased treasury stock for $5.2 million.  These funds were
extracted from the earning pool, lowering net interest income and increasing
earnings per share.

  The impact of these factors is particularly evident in the third quarter's
results as net interest income decreased to $16.2 million from the $17.2 million
reported in 1999, while the net interest margin decreased to 3.73% in the third
quarter of 2000, from 4.22% reported in 1999.  Management expects the fourth
quarter will yield similar results as growth will continue to be financed
through wholesale funding and treasury shares will continue to be purchased.

Noninterest Income

  Noninterest income for the nine month period ending September 30, 2000, as
compared to the same period of 1999, increased $1.6 million, or 18.6%.  The
increase was driven by higher service charges and fees on deposit products.

                                    10 <PAGE>

  Noninterest income for the third quarter increased by 45.1% to $3.8 million
from the $2.6 million reported in 1999.  The increase is the result of
additional fee income generated by higher service charges and fees on deposit
products and by increased revenue from our financial services department.

Noninterest Expenses

  Noninterest expenses for the first nine months of 2000, as compared to the
same period of 1999, decreased $.8 million due mainly to a 4.6% decrease in
salaries and employee benefits.

  Noninterest expenses for the third quarter were $10.6 million, $.4 million
less than the $11.0 million reported for the same period of 1999.

Allowance for Loan Losses

  The Corporation's provision for loan losses decreased to $3.2 million for
the first nine months of 2000 compared to $3.6 million in the same period of
1999.  At September 30, 2000, the allowance for loan losses was 1.50% of net
loans, the same level as December 31, 1999.  Net chargeoffs for the first nine
months of 2000 were $1.8 million compared to $2.2 million for the same period
of 1999.  The ratio of annual net chargeoffs to average loans outstanding for
the five years ended December 31, 1999, was .33%. With this experience and
based on management's review of the portfolio, management believes the allowance
of $19.4 million at September 30, 2000, is adequate.

Nonperforming Loans and Leases

  Nonperforming loans and leases consist of (1) nonaccrual loans and leases on
which the ultimate collectability of the full amount of interest is uncertain,
(2) loans and leases which have been renegotiated to provide for a reduction or
deferral of interest or principal because of a deterioration in the financial
position of the borrower, and (3) loans and leases past due ninety days or more
as to principal or interest.  A summary of nonperforming loans and leases at
September, 2000 and December 31, 1999 follows:

                                              (000's)                (000's)
                                        September 30, 2000     December 31, 1999

Nonaccrual loans and leases                   $4,470                 $2,879
Renegotiated loans and leases                      0                    959
Ninety days past due loans and leases          5,993                  5,229
  Total nonperforming loans and leases       $10,463                 $9,067

Ratio of the allowance for loan
  losses as a percentage of
  nonperforming loans and leases                 185%                   198%

                                         11 <PAGE>

  The following loan categories comprise significant components of the
nonperforming loans at September 30, 2000 and December 31, 1999.

Non-Accrual Loans:
                                             (000's)                 (000's)
                                       September 30, 2000      December 31, 1999

  1-4 family residential                 $1,603     36%         $1,617     56%
  Commercial loans                        2,275     51             697     24
  Installment loans                         592     13             544     19
  Other, various                              0      0              21      1
                                         $4,470    100%         $2,879    100%

Past due 90 days or more:

  1-4 family residential                 $1,745     29%         $2,927     56%
  Commercial loans                        3,262     55           1,306     25
  Installment loans                         965     16             830     16
  Other, various                             21      0             166      3
                                         $5,993    100%         $5,229    100%

  There are no material industry concentrations within the nonperforming loans.

Interest Rate Sensitivity and Liquidity

  The Corporation charges the nine subsidiary banks with monitoring and managing
their individual sensitivity to fluctuations in interest rates and assuring that
they have adequate liquidity to meet loan demand or any potential unexpected
deposit withdrawals.  This function is facilitated by the Asset/Liability
Committee (the 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.  This goal is accomplished throughsiiddiary
bank's balance sheet liquidity and interest rate risk exposures due to the
changes in economic conditions and interest rate levels.

Interest Rate Risk and Quantitative and Qualitative Disclosures About
  Market Risk

  Management considers interest rate risk to be the Corporation's most
significant market risk.  Interest rate risk is the exposure to changes in net
interest income as a result of changes in interest rates.  Consistency in the
Corporation's net income is largely dependent on the effective management of
this risk.

  The Committee reviews a series of monthly reports to ensure that performance
objectives are being met.  It monitors and controls interest rate risk through
earnings simulation.  Simulation modeling measures the effects of changes in
interest rates, changes in the shape of the yield curve, and changes in
prepayment speeds on net interest income.  The primary measure of Interest Rate
Risk is "Earnings at Risk."  This measure projects the earnings effect of
various rate movements over the next three years on net interest income.  It is
important to note that measures of interest rate risk have limitations and are
dependent upon certain assumptions.  These assumptions are inherently uncertain
and, as a result, the model cannot precisely predict the impact of interest rate
fluctuations on net interest income.  Actual results will differ from simulated
results due to timing, frequency and amount of interest rate changes as well as
overall market conditions.  The Committee has performed a thorough analysis and
believes the assumptions to be valid and theoretically sound.  The relationships
are continuously monitored for behavioral changes.

                                      12 <PAGE>


  In its interest rate risk management, the Corporation currently does not
utilize any derivative products and is not engaged in securities trading
activity.  The Corporation instead invests in assets whose value is derived from
an underlying asset.  These assets include government agency issued mortgage-
backed securities.  The performance of these assets in changing rate
environments is included in the following table.

  The table below shows the Corporation's estimated earnings sensitivity
profile as of September 30, 2000.  Given a 100 basis point increase in rates,
net interest income would decrease 5.18% over the next 12 months and decrease
5.38% over the second 12 month period.  A 100 basis point decrease would result
in a 2.54% increase in net interest income over the next 12 months and a 2.54%
increase over the second 12 month period.  These estimates assume all rates
changed overnight and management took no action as a result of this change.

Basis Point                     Percentage Change in Net Interest Income
Interest Rate Change            12 months      24 months      36 months
Down 300                          2.04%          2.49%          2.09%
Down 200                          3.27           3.43            .38
Down 100                          2.54           2.54           1.03
Up 100                           -5.18          -5.38          -3.81
Up 200                          -10.43         -10.95          -7.78
Up 300                          -15.87         -16.70         -11.69

  The Corporation does have assets and liabilities which contain embedded
options, most notably callable agency securities and putable Federal Home Loan
Bank advances.  The securities pay a premium rate and the advances charge a
discounted rate in exchange for the option.  Therefore, there is a benefit to
current income from using these products.  Management believes these put and
call options are clearly and closely related to the underlying instruments and
are not considered derivatives under SFAS 133.  Typical rate shock analysis does
not reflect management's ability to react and thereby reduce the effects of rate
changes, and represents a worst case scenario.  The model assumes no actions are
taken and prices change to the full extent of the rate shock.

Liquidity Risk

  Liquidity is measured by each bank's ability to raise funds to meet the
obligations from its customers, including deposit withdrawals and credit needs.
This is accomplished primarily by maintaining sufficient liquid assets in the
form of investment securities and core deposits.  The Corporation has $9.3
million of investments that mature throughout the coming 12 months.  The
Corporation also anticipates $31.8 million of principal payments from mortgage-
backed securities.  Given the current interest rate environment, the Corporation
anticipates $23.9 million of  securities to be called within the next 12 months.
With these sources of funds, the Corporation currently anticipates adequate
liquidity to meet the expected obligations of its customers.

Financial Condition

  The Corporation experienced asset growth of $94.1 million, or 4.9% since year
end.  This compares to the asset reduction of $3.6 million or .2% for the same
period of 1999.  This growth was the result of an increase in net loans
outstanding of $95.9 million.  The growth was funded by a 16.5% increase, or
$62.9 million, in Federal Home Loan Bank advances and a $10.0 million increase
in short-term borrowings, primarily federal funds purchased.

Capital Adequacy

  As of September 30, 2000, the Corporation's leverage ratio was 9.26% compared
to 9.36% at December 31, 1999.

  At September 30, 2000, the Corporation's total risk-based capital ratio, which
includes Tier II capital, was 15.60% compared to 15.91% at December 31, 1999.
These amounts exceed minimum regulatory capital requirements.

                                     13 <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: November 10, 2000                    By       (Signature)
                                           Donald E. Smith, Chairman


Date: November 10, 2000                    By       (Signature)
                                           Norman L. Lowery, Vice Chairman


Date: November 10, 2000                    By       (Signature)
                                           Michael A. Carty, Treasurer

                                    14 <PAGE>