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<SEC-DOCUMENT>0000950137-06-000658.txt : 20060120
<SEC-HEADER>0000950137-06-000658.hdr.sgml : 20060120
<ACCEPTANCE-DATETIME>20060120113258
ACCESSION NUMBER:		0000950137-06-000658
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060120
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060120
DATE AS OF CHANGE:		20060120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST FINANCIAL CORP /IN/
		CENTRAL INDEX KEY:			0000714562
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				351546989
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-16759
		FILM NUMBER:		06539833

	BUSINESS ADDRESS:	
		STREET 1:		ONE FIRST FINANCIAL PLAZA
		CITY:			TERRE HAUTE
		STATE:			IN
		ZIP:			47807
		BUSINESS PHONE:		(812) 238-6000

	MAIL ADDRESS:	
		STREET 1:		ONE FIRST FINANCIAL PLAZA
		CITY:			TERRE HAUTE
		STATE:			IN
		ZIP:			47807

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TERRE HAUTE FIRST CORP
		DATE OF NAME CHANGE:	19850808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c01759e8vk.txt
<DESCRIPTION>CURRENT REPORT
<TEXT>
<PAGE>
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

       Date of Report (Date of earliest event reported) January 20, 2006

                           First Financial Corporation
             (Exact name of registrant as specified in its chapter)


            Indiana                     000-16759                35-1546989
 (State or other jurisdiction          (Commission             (IRS Employer
       of incorporation)               File Number)         Identification No.)


         P. O. Box 540 , Terre Haute, Indiana              47808
       (Address of principal executive offices)          (Zip Code)

         Registrant's telephone number, including area code 812-238-6264

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR
    230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)

[ ] Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

<PAGE>

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

         On January 20, 2006, the Registrant issued a press release reporting
its financial results for the year and three months ended December 31, 2005. A
copy of the press release is being furnished as an exhibit to this report and is
incorporated by reference into this item 12.

         The foregoing information, including the information contained in the
press release, is being furnished pursuant to this Item 12 and shall not be
deemed to be "filed" for purposes of section 18 of the Securities Exchange Act
of 1934, as amended, or otherwise subject to the liabilities of that Section or
Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition,
this information shall not be deemed to be incorporated by reference into any of
the Registrant's filings with the Securities and Exchange Commission, except as
shall be expressly set forth by specific reference in any such filing.

         The exhibit to this report is as follows:

         Exhibit No.       Description

            99.1           Press Release, dated January 20, 2006 issued by First
                           Financial Corporation

<PAGE>
                                   SIGNATURES

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


                              FIRST FINANCIAL CORPORATION


Dated   January 20, 2006      /s/ Norman L. Lowery
                              -----------------------------------------
                              Norman L. Lowery
                              Vice Chairman and Chief Executive Officer


Dated   January 20, 2006      /s/ Michael A. Carty
                              -----------------------------------------
                              Michael A. Carty
                              Secretary/Treasurer and Chief Financial Officer



<PAGE>
                                  Exhibit Index

Exhibit Number

     99.1              Press Release, January 20, 2006 issued by First Financial
                       Corporation

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>c01759exv99w1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
<PAGE>
[FIRST LOGO]                           News Release


FIRST FINANCIAL
CORPORATION
ONE FIRST FINANCIAL PLAZA, TERRE HAUTE, INDIANA 47807 (812) 238-6000

                                       For more information contact:
January 20, 2006                       Michael A. Carty at (812) 238-6264



             FIRST FINANCIAL REPORTS INCREASED 4TH QUARTER EARNINGS

         First Financial Corporation today announced that net income for the
fourth quarter of 2005 was $5.4 million compared to $5.0 million for the same
period of 2004. Non-interest income increased 15.3% or $1.0 million over the
same period of 2004. This increase, combined with a $203 thousand increase in
net-interest income, offset the increase of $861 thousand in the provision for
loan losses. Non-interest expense was virtually identical to the same period of
2004. Earnings per share of $0.41, return on assets of 1.00% and return on
equity of 8.15% were all improved over the same period of 2004 by 10.8%, 8.7%
and 15.0% respectively.

          The results of operations for the year ended December 31, 2005,
reflected net income of $23.1 million or $1.72 per share. This represents a
decrease of 17.7% from net income in 2004 of $28.0 million. In 2004 the
Corporation recognized a non-taxable gain of $4.1 million on life insurance
benefit from its investment in bank owned life insurance. Excluding this gain,
the decrease in net income in 2005 from 2004 net income was 3.5%


<PAGE>

or $842 thousand. During 2005 the Corporation increased the provision for loan
losses by $3.4 million to address credit quality concerns. The Corporation also
increased net-interest income by $2 million and non-interest income, excluding
the life insurance gain, by $384 thousand. Non-interest expense decreased by
$118 thousand. Dividends per share increased 3.8% to $0.82 per share for 2005
from $0.79 per share for 2004.

         Increases in net-interest income in 2005 were achieved as a result of
an improved net interest margin. The net interest margin increased to 3.92% from
the 2004 margin of 3.77%. The improved margin is the result of an increase in
deposit balances and a decrease in borrowings, with the funding cost of deposits
being less than borrowings. Rising interest rates during 2005 also resulted in
loan and investment yields increasing at a faster rate than funding costs.
Deposits increased by $21.8 million while borrowings were reduced by $67.9
million. Reduced funding was needed as loans decreased $68.1 million.

          "We're proud of our employees for their outstanding performance in a
challenging economic environment," said First Financial Corporation Chairman
Donald E. Smith. "Our success is a direct result of their dedication to customer
satisfaction and convenience."

          First Financial Corporation is the holding company for First Financial
Bank NA in Indiana and Illinois, The Morris Plan Company of Terre Haute and
Forrest Sherer Inc. in Indiana.



<PAGE>

                           FIRST FINANCIAL CORPORATION

         FOR THE QUARTER AND THE TWELVE MONTHS ENDING DECEMBER 31, 2005

               (Dollar amounts in thousands except per share data)
<Table>
<Caption>
                                             12/31/05        12/31/04        CHANGE        % CHANGE
<S>                                          <C>             <C>             <C>           <C>
   YEAR TO DATE INFORMATION:

   Net Income                                $23,054         $28,009         ($4,955)       -17.69%
   Earnings Per Average Share                $1.72           $2.07            ($0.35)       -16.91%
   Return on Assets                          1.07%           1.28%             -0.21%       -16.41%
   Return on Equity                          8.52%           10.45%            -1.93%       -18.47%
   Net Interest Margin                       3.92%           3.77%              0.15%         3.98%
   Net Interest Income                       $74,178         $72,202          $1,976          2.74%
   Non-Interest Income                       $32,025         $35,754         ($3,729)       -10.43%
   Non-Interest Expense                      $63,538         $63,656           ($118)       - 0.19%
   Loan Loss Provision                       $11,698         $8,292           $3,406         41.08%
   Net Charge Offs                           $15,574         $9,613           $5.961         62.01%
   Efficiency Ratio                          57.21%          58.18%            -0.96%       - 1.66%


   QUARTER TO DATE INFORMATION:

   Net Income                                $5,428          $5,020             $408          8.13%
   Earnings Per Average Share                $0.41           $0.37             $0.04         10.81%
   Return on Assets                          1.00%           0.92%              0.08%         8.70%
   Return on Equity                          8.15%           7.09%              1.06%        14.95%
   Net Interest Margin                       3.95%           3.77%              0.18%         4.77%
   Net Interest Income                       $18,872         $18,669            $203          1.09%
   Non-Interest Income                       $7,679          $6,663           $1,016         15.25%
   Non Interest Expense                      $16,455         $16,377             $78         -0.48%
   Loan Loss Provision                       $3,084          $2,223             $861         38.73%
   Net Charge Offs                           $3,336          $5,011          ($1,675)        33.43%
   Efficiency Ratio                          59.23%          61.32%            -2.09%        -3.41%


   BALANCE SHEET:

   Assets                                    $2,136,918      $2,183,992     ($47,074)        -2.16%
   Deposits                                  $1,464,918      $1,443,121      $21,797          1.51%
   Loans                                     $1,395,741      $1,463,871     ($68,130)        -4.65%
   Shareholders' Equity                      $269,323        $268,335        $   988          0.37%
   Book Value Per Share                      $20.14          $19.82          $  0.32          1.59%
   Average Assets                            2,153,517       2,192,168      ($38,651)        -1.76%
</Table>


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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