8-K

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)                     November 21, 2006
MUTUALFIRST FINANCIAL, INC. (Exact name of registrant as specified in its chapter)
Maryland (State or other jurisdiction of incorporation	000-27905 (Commission File Number)	35-2085640 (IRS Employer Identification No.)

110 E. Charles Street, Muncie, Indiana (Address of principal executive offices) 47305-2419 (Zip Code)

Registrant's telephone number, including area code                      (765) 747-2800              

Not Applicable(Former name or former address, if changed since last report)

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 communications 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 communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.  Other Events

         On November 21, 2006, the Registrant issued a press release announcing several activities expected to enhance the repositioning of its balance sheet.

Item 9.01.  Financial Statements and Exhibits

(d)	Exhibits
	99	Press release dated November 21, 2006.

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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.

	MUTUALFIRST FINANCIAL, INC.
Date: November 22, 2006	By:   /s/ Timothy J. McArdle       Timothy J. McArdle        Senior Vice President, Treasurer

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EXHIBIT INDEX

Exhibit Number	Description
99	Press Release, dated November 21, 2006

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EX-99

EXHIBIT 99

PRESS RELEASE

FOR MORE INFORMATION CONTACT:
David W. Heeter, CEO
765-747-2880

Timothy J. McArdle, CFO
765-747-2818 FOR IMMEDIATE RELEASE:
November 21, 2006

MutualFirst Takes Steps to Reposition Balance Sheet.

MutualFirst financial (NASDAQ: MFSF) announced today several activities expected to enhance the repositioning of its balance sheet and improve earnings.

MutualFirst Financial has sold nearly $25 million of significantly below market, fixed-rate mortgage loans. These loans have in part, been funded with borrowings at a higher interest rate. This sale furthers the strategy MutualFirst has subscribed to in order to better position the company in adverse interest rate environments.

"The continued difficult interest rate environment we are currently operating within has required us to look for ways to accelerate a change in our balance sheet that will lessen margin pressure and interest rate risk," said President and CEO David Heeter.

"This sale will generate a pre-tax loss of approximately $1.1 million, but will help offset continued pressure on our interest rate margin." Heeter added, "Proceeds from the sale will be used to pay off Federal Home Loan Bank borrowings as we continue to seek ways to manage the volatile cost of funding loan production."

MutualFirst will also accelerate the expensing of several items this quarter, including the payment of compensation due to acquired personnel over the past fifteen months. These expense activities are anticipated to total less than $300,000 pre-tax and will reduce expenses moving forward.

The expense of these activities is expected to be largely offset by non-ordinary income. Mutual Federal Savings Bank has entered into an agreement to trade a piece of property it originally acquired for a branch site in Elkhart County for an adjacent property of more value and $750,000 in cash that will generate a substantial gain. It is anticipated that this transaction will occur yet this year. It is also anticipated that construction of a new Elkhart County facility on this new site will begin early in 2007.

MutualFirst Financial, Inc. through its wholly owned subsidiary, Mutual Federal Savings Bank, currently offers financial services through a network of twenty-one full-service offices in Delaware, Randolph, Kosciusko, Grant and Wabash Counties in Indiana and via the Internet.

Statements contained in this release, which are not historical facts, are forward-looking statements, as that term is defined in the Private Securities reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those currently anticipated due to a number of factors, which include, but are not limited to factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.