8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 26, 2011

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

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

P. O. Box 540 , Terre Haute, Indiana	47808
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 812-238-6334

(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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

Item 9.01. Financial Statements and Exhibits

On January 26, 2011, the Registrant issued a press release reporting its financial results for the three and twelve months ended December 31, 2010. 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 26, 2011 issued by First Financial Corporation

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 26, 2011

/s/Rodger A. McHargue                                
Rodger A. McHargue
Secretary/Treasurer and Chief Financial Officer

Exhibit Index

Exhibit Number 99.1
Press Release, January 26, 2011 issued by First Financial Corporation

EX-99.1

Exhibit 99.1

News Release

FIRST FINANCIAL CORPORATION
One First Financial Plaza, Terre Haute, Indiana 47807 (812) 238-6000

	For more information contact:
January 26, 2011	Rodger A. McHargue at (812) 238-6334

First Financial Corporation reports 2011 Results

TERRE HAUTE, INDIANA — First Financial Corporation (NASDAQ:THFF) today announced results for the year and three months ended December 31, 2010. Net income for 2010 increased 23.4% or $5.3 million to $28.0 million from the $22.7 million reported for 2009. Net income for the three months ended December 31, 2010 was $8.4 million compared to $5.9 million for the same period of 2009. Return on assets and return on equity for 2010 was 1.11%and 8.73%, respectively, compared to 0.95% and 7.54% for 2009.

Net interest income for 2010 of $96.6 million is an increase of 11.1% over the $87.0 million reported for 2009. Net interest income for the quarter ended December 31, 2010 was $24.6 million compared to $23.1 million for the fourth quarter of 2009, a 6.6% increase. The net interest margin of 4.35% for 2010 is an increase of 5.3% over the 4.13% reported for 2009 as the Corporation continued to realize the benefits of reduced funding costs.

Non-interest income for the three months ended December 31, 2010 and 2009 was $9.6 and $7.4 million respectively. For 2010, non-interest income was $29.8 million compared to the $28.5 million reported for 2009. Improvements in Trust and financial services income as well as electronic banking income were the primary contributors to the improvement in non-interest income for the year.

Non-interest expense for 2010 was $77.2 million compared to $73.4 million in 2009. During 2010 the Corporation recognized a full year of expenses related to the acquisition of The First National Bank of Danville which occurred in July of 2009. This accounts for approximately $1.5 million of the increase in non-interest expense for the year. For the three months ended December 31, 2010, non-interest expenses were reduced $530 thousand to $19.6 million from the $20.2 million reported for the same period of 2009. The 4^th quarter improvement in non-interest expense is largely related to the lower personnel and occupancy costs as efficiencies related to the Danville acquisition in 2009 were realized.

Total deposits at December 31, 2010 increased by $113.3 million or 6.3% to $1.90 billion compared to $1.79 billion reported the same time a year ago. This increase was used to reduce higher cost borrowings, which contributed to the improved net interest margin. There was less overall loan demand in 2010 however the Corporation was able to increase loans by $8.3 million to $1.64 billion. Shareholders’ equity and the book value per share increased 5.0% and 4.8% respectively to $321.7 million and $24.46 per share for 2010. This improvement allowed the Corporation to increase the dividends it paid to shareholders in 2010, something it has done for each of the past 22 years.

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.

First Financial Corporation

For the Quarter Ending December 31, 2010

(Dollar amounts in thousands except per share data)

	12/31/10			12/31/09			Change			% Change
Year to Date Information:
Net Income	$	28,044		$	22,720		$	5,324			23.43	%
Earnings Per Average Share	$	2.14		$	1.73		$	0.41			23.70	%
Return on Assets		1.11	%		0.95	%		0.16	%		16.84	%
Return on Equity		8.73	%		7.54	%		1.19	%		15.78	%
Net Interest Margin		4.35	%		4.13	%		0.22	%		5.33	%
Net Interest Income	$	96,616		$	86,994		$	9,622			11.06	%
Non-Interest Income	$	29,797		$	28,532		$	1,265			4.43	%
Non-Interest Expense	$	77,203		$	73,381		$	3,822			5.21	%
Loss Provision	$	9,200		$	11,870			($2,670	)		-22.49	%
Net Charge Offs	$	7,963		$	8,713			($750	)		-8.61	%
Efficiency Ratio		58.63	%		60.64	%		-2.01	%		-3.32	%
Quarter to Date Information:
Net Income	$	8,352		$	5,850		$	2,502			42.77	%
Earnings Per Average Share	$	0.64		$	0.45		$	0.19			42.22	%
Return on Assets		1.32	%		0.93	%		0.39	%		41.94	%
Return on Equity		10.10	%		7.50	%		2.60	%		34.67	%
Net Interest Margin		4.41	%		4.19	%		0.22	%		5.25	%
Net Interest Income	$	24,601		$	23,088		$	1,513			6.55	%
Non-Interest Income	$	9,615		$	7,358		$	2,257			30.67	%
Non-Interest Expense	$	19,642		$	20,171			($529	)		-2.62	%
Loss Provision	$	2,190		$	2,490			($300	)		-12.05	%
Net Charge Offs	$	1,431		$	1,881			($450	)		-23.92	%
Efficiency Ratio		55.25	%		63.38	%		-8.13	%		-12.83	%
Balance Sheet:
Assets	$	2,451,095		$	2,518,722			($67,627	)		-2.68	%
Deposits	$	1,903,043		$	1,789,701		$	113,342			6.33	%
Loans	$	1,640,146		$	1,631,764		$	8,382			0.51	%
Shareholders’ Equity	$	321,717		$	306,483		$	15,234			4.97	%
Book Value Per Share	$	24.46		$	23.34		$	1.12			4.79	%
Average Assets		2,516,782			2,400,100		$	116,682			4.86	%