UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 20549

                               FORM 10-Q

[ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
         THE SECURITIES EXCHANGE ACT OF 1934

        For the quarterly period ended  March 31, 1998

                                   OR

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

        For the transition period from ______________ to _______________

                     Commission File Number  1-13842 

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

              Texas                  .              71-0771419       . 
   (State or other jurisdiction of              (I.R.S. Employer
    incorporation or organization)               Identification Number)

          3rd & Olive Streets
          Texarkana, Arkansas         .                71854         . 
(Address of principal executive office)              (Zip Code)

                            (870) 773-1103                            .
          (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 shorter 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 ___

Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date:  As of  
March 31, 1998, there were issued and outstanding 1,758,692 shares of 
the Registrant's Common Stock, par value $0.01 per share.

<PAGE>
                  TEXARKANA FIRST FINANCIAL CORPORATION




                             TABLE OF CONTENTS




                                                                    Page

Part I.  Financial Information

Item 1.  Consolidated Financial Statements:

         Consolidated Statements of Financial Condition
         As of March 31, 1998 (unaudited) and September 30, 1997      1

         Consolidated Statements of Income for the three and six
         months ended March 31, 1998 and 1997 (unaudited)             2

         Consolidated Statements of Cash Flows for the six months
         ended March 31, 1998 and 1997 (unaudited)                    3

         Notes to Unaudited Consolidated Financial Statements         5
 
Item 2.  Management's Discussion and Analysis of Financial 
         Condition and Results of Operations                          8



Part II. Other Information

Item 1.  Legal Proceedings                                           12
Item 2.  Changes in Securities                                       12
Item 3.  Defaults Upon Senior Securities                             12
Item 4.  Submission of Matters to a Vote of Security Holders         12
Item 5.  Other Information                                           12
Item 6.  Exhibits and Reports on Form 8-K                            12
         Signatures                                                  13

















<PAGE>
                    TEXARKANA FIRST FINANCIAL CORPORATION
                               AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                               (In Thousands)

                                                Unaudited
                                                March 31,   September 30
                                                   1998           1997 
ASSETS
Cash and cash equivalents
  Cash & due from banks........................ $  1,473       $  1,147
  Interest bearing deposits in other banks.....    3,474          3,331
  Federal funds sold...........................    4,025          1,575
                                                ________       ________
    Total cash and cash equivalents............    8,972          6,053
Investment securities available-for-sale.......   22,403         18,767
Mortgage-backed securities held-to-maturity....    1,124          1,293
Federal Home Loan Bank stock...................    1,150          1,116
Loans receivable, net of unearned income.......  148,034        148,471
Allowance for loan losses......................   (1,123)        (1,124)
Accrued interest receivable....................    1,196          1,176
Foreclosed real estate, net....................      145            127
Premises and equipment, net....................    2,432          2,382
Other assets...................................      443            449
                                                ________       ________
    Total assets............................... $184,776       $178,710
                                                ========       ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits....................................... $148,377       $143,207
Advances from borrowers for taxes & insurance..    1,127          1,920
Borrowed funds.................................    6,022          4,989
Accrued federal income tax.....................      389            302
Accrued state income tax.......................      180            216
Accrued expenses and other liabilities.........      551            696
                                                ________       ________
    Total liabilities..........................  156,646        151,330
                                                ________       ________
Commitments and contingencies..................      - -            - -
                                                ________       ________
Common stock, $0.01 par value; 
  15,000,000 shares authorized;
  1,983,750 shares issued .....................       20             20
Additional paid-in capital.....................   13,596         13,485
Common stock acquired by stock benefit plans...   (1,934)        (2,208)
Treasury stock, at cost, 225,058 shares and
  196,745 shares September 30, 1997............   (3,831)        (3,103)
Retained earnings-substantially restricted.....   20,201         19,105
Net unrealized gain (loss) on investment
  securities available for sale, net of tax....       78             81
                                                ________       ________
    Total stockholders' equity.................   28,130         27,380
                                                ________       ________
    Total liabilities and stockholders' equity. $184,776       $178,710
                                                ========       ========

The accompanying notes are an integral part of this statement.
                                  Page 1
<PAGE>
                    TEXARKANA FIRST FINANCIAL CORPORATION
                              AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF INCOME
                    (In Thousands, Except Per Share Data)
                               (Unaudited)

                                             Three Months     Six Months
                                                Ended           Ended
                                               March 31,       March 31,
                                              1998   1997    1998   1997
Interest Income
  Loans
    First mortgage loans................... $2,838 $2,646  $5,672 $5,250
    Consumer and other loans...............    335    291     665    578
  Investment securities....................    322    320     623    634
  Mortgage-backed and related securities...    146     26     275     54
                                            ______ ______  ______ ______
    Total Interest Income..................  3,641  3,283   7,235  6,516
                                            ______ ______  ______ ______
Interest Expense
  Deposits.................................  1,841  1,686   3,678  3,380
  Borrowed funds...........................     89      1     175      7
                                            ______ ______  ______ ______
    Total Interest Expense.................  1,930  1,687   3,853  3,387
                                            ______ ______  ______ ______
    Net Interest Income....................  1,711  1,596   3,382  3,129
  Provision for loan losses................    - -    - -     - -    - -
                                            ______ ______  ______ ______
    Net Interest Income After Provision....  1,711  1,596   3,382  3,129
                                            ______ ______  ______ ______
Noninterest Income
  Gain on sale of repossessed assets, net..      3    - -       5    - -
  Loan origination and commitment fees.....    106     60     192    128
  Investment securities gains (losses), net    - -    - -     - -    - -
  Other....................................    216    103     384    209
                                            ______ ______  ______ ______
    Total Noninterest Income...............    325    163     581    337
                                            ______ ______  ______ ______
Noninterest Expense
  Compensation and benefits................    535    433   1,046    908
  Occupancy and equipment..................     51     42     105     84
  SAIF deposit insurance premium...........     23      5      45     79
  Provision & loss on foreclosed real estate   - -    - -     - -    - -
  Other....................................    142    146     286    280
                                            ______ ______  ______ ______
    Total Noninterest Expense..............    751    626   1,482  1,351
                                            ______ ______  ______ ______
Income Before Income Taxes.................  1,285  1,133   2,481  2,115
Income tax expense.........................    477    421     917    784
                                            ______ ______  ______ ______
Net Income................................. $  808 $  712  $1,564 $1,331
                                            ====== ======  ====== ======
Earnings Per Share - basic................. $ 0.49 $ 0.42  $ 0.95 $ 0.78
Earnings Per Share - diluted............... $ 0.47 $ 0.42  $ 0.91 $ 0.77

Weighted average shares - basic............  1,634  1,691   1,640  1,708
Weighted average shares - diluted..........  1,719  1,718   1,725  1,734

Dividends per share........................ $.1400 $.1125  $.2800 $.2250

The accompanying notes are an integral part of this statement.

                                  Page 2
<PAGE>
                    TEXARKANA FIRST FINANCIAL CORPORATION
                              AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In Thousands)
                                (Unaudited)

                                                        Six Months Ended
                                                            March 31,
                                                         1998     1997
Cash Flows From Operating Activities:
  Interest and dividends received.................... $ 7,177  $ 6,522
  Miscellaneous income received......................     576      337
  Interest paid......................................  (1,385)  (1,043)
  Cash paid to suppliers and employees...............  (1,230)  (1,840)
  Cash from loans sold...............................   7,890    1,173
  Cash paid for loans originated to sell.............  (5,165)  (1,051)
  Income taxes paid..................................    (866)    (237)
                                                      _______  _______
    Net Cash Provided By Operating Activities........   6,997    3,861
                                                      _______  _______

Cash Flows From Investing Activities:
  Proceeds from call and maturity of securities......   8,605    1,500
  Proceeds from sale of securities available for sale     - -    2,420
  Purchases of securities available for sale......... (10,146)  (2,500)
  Purchases of mortgage-backed securities............  (2,841)     - -
  Principal collected on mortgage-backed securities..     899      126
  Purchase of fixed assets...........................    (102)    (322)
  Net (increase) in loans............................  (2,229)  (3,792)
  Cash paid for REO held for resale..................     (17)      (8)
  Proceeds from sale of REO and other REO recoveries.      64       14
                                                      _______  _______
    Net Cash (Used) By Investing Activities..........  (5,767)  (2,562)
                                                      _______  _______

Cash Flows From Financing Activities:
  Net increase (decrease) in savings,
    demand deposits, and certificates of deposit.....   2,668    3,415
  Net increase (decrease) in escrow funds............    (793)    (853)
  Net increase (decrease) in funds borrowed..........   1,033   (2,815)
  Purchase of treasury stock.........................    (730)    (734)
  Stock options exercised............................       8      - -
  Purchase of common stock for employee benefit plans     - -       (9)
  Cash dividends paid on common stock................    (497)    (418)
                                                      _______  _______
    Net Cash Provided(Used) By Financing Activities..   1,689   (1,414)
                                                      _______  _______

    Net increase(Decrease) In Cash & Cash Equivalents   2,919     (115)
Cash and Cash Equivalents, beginning of period.......   6,053    8,860
                                                      _______  _______
Cash and Cash Equivalents, end of period............. $ 8,972  $ 8,745
                                                      =======  =======

The accompanying notes are an integral part of this statement.

                                  Page 3
<PAGE>
                    TEXARKANA FIRST FINANCIAL CORPORATION


SUPPLEMENTAL INFORMATION CONCERNING CASH FLOWS


                                                        Six Months Ended
                                                            March 31,
                                                         1998     1997

Reconciliation of net income to cash provided
      by operating activities:
Net income........................................... $ 1,564  $ 1,331
                                                      _______  _______
Adjustments to reconcile net income to cash provided
      by operating activities:
  Depreciation.......................................      52       40
  Amortization of discounts and premiums.............      15      (23)
  Amortization of deferred loan fees.................     (20)      (6)
  Amortization of stock acquired by benefit plans....     300      260
  Interest expense credited to saving accounts.......   2,502    2,249
  Dividend and interest income added to investments..     (58)     (53)
  Loan fees deferred.................................      22       13
Changes in assets and liabilities:
  (Increase) decrease in interest receivable.........     (20)      76
  Increase (decrease) in accrued interest payable....     (34)      95
  Increase (decrease) in income tax payable..........      51      554
  Increase (decrease) in other receivables & payables   2,623     (675)
                                                      _______  _______
    Total adjustments................................   5,433    2,530
                                                      _______  _______
Net cash provided by operations...................... $ 6,997  $ 3,861
                                                      =======  =======






Supplemental schedule of noncash investing
  and financing activities:
    FHLB stock dividends not redeemed................ $    34  $    31
    Acquisition of real estate in settlement of loans      70      157
    Loans made to finance sale of REO................      76      - -
    Net unrealized gain (loss) on investment 
      securities available for sale..................       4       24









                                  Page 4
<PAGE>
                  TEXARKANA FIRST FINANCIAL CORPORATION


           Notes to Unaudited Consolidated Financial Statements  


Basis of Presentation

Texarkana First Financial Corporation (the "Company") was incorporated 
in March 1995 under Texas law for the purpose of acquiring all of the 
capital stock issued by First Federal Savings and Loan Association of 
Texarkana (the "Association") in connection with the Association's 
conversion from a federally chartered mutual savings and loan 
association to a stock savings and loan association (the "Conversion").  
The Conversion was consummated on July 7, 1995 and, as a result, the 
Company became a unitary savings and loan holding company for the 
Association.  Prior to the Conversion, the Company had no material 
assets or liabilities and engaged in no business activity.  Subsequent 
to the acquisition of the Association, the Company has engaged in no 
significant activity other than holding the stock of the Association and 
engaging in certain passive investment activities.

The accompanying unaudited consolidated financial statements of the 
Company have been prepared in accordance with instructions to Form 10-Q.  
Accordingly, they do not include all of the information and footnotes 
required by generally accepted accounting principles for complete 
financial statements.  However, such information reflects all 
adjustments (consisting solely of normal recurring adjustments) which 
are, in the opinion of management, necessary for a fair statement of 
results for the interim periods. 

The results of operations for the three and six months ended March 31, 
1998 are not necessarily indicative of the results to be expected for 
the year ending September 30, 1998.  Although net income was consistent 
for the first two quarters, earnings for the full fiscal year will be 
impacted by the repurchase of Company stock and various economic 
conditions.  The unaudited consolidated financial statements and notes 
thereto should be read in conjunction with the audited financial 
statements and notes thereto for the year ended September 30, 1997, 
contained in the Company's annual report to stockholders.


Earnings Per Share

Basic earnings per share is computed on the basis of the weighted-
average number of shares of common stock outstanding.  Stock options 
outstanding are included in the calculation of fully diluted earnings 
per share.  Shares acquired by the ESOP are accounted for in accordance 
with Statement of Position 93-6 and are not included in the weighted-
average shares outstanding until the shares are committed to be released 
for allocation to ESOP participants.


Borrowed Funds

Borrowed funds consist primarily of short-term, fixed rate advances from 
the Federal Home Loan Bank ("FHLB").  At March 31, 1998, the balance was 
$6.0 million, at 5.55% maturing April 27, 1998.  At September 30, 1997, 
the balance was $5.0 million, at 5.54% maturing October 24, 1997.

                                  Page 5
<PAGE>
Recent Legislation

The deposits of the Association are currently insured by the Savings 
Association Insurance Fund ("SAIF").  The previously underfunded status 
of the SAIF resulted in the introduction of federal legislation intended 
to, among other things, recapitalize the SAIF and address the resulting 
premium disparity between the SAIF and the Bank Insurance Fund ("BIF"), 
the federal deposit insurance fund that covers commercial bank deposits.  
In September 1996, the Omnibus Appropriations Act was signed into law.  
This legislation authorized a one time charge of SAIF-insured 
institutions in the amount of .657 dollars for every one hundred dollars 
of assessable deposits.  Additional provisions of the Act include new 
BIF and SAIF premiums and the merger of BIF and SAIF.  The new BIF and 
SAIF premiums will include a premium for repayment of the Financing 
Corporation ("FICO") bonds plus any regular insurance assessment, 
currently nothing for the lowest risk category institutions.  Until full 
pro-rata FICO sharing is in effect, the FICO premiums for BIF and SAIF 
will be 1.3 and 6.4 basis points, respectively, beginning January 1, 
1997.  Full pro-rata FICO sharing is to begin no later than January 1, 
2000.  BIF and SAIF are to be merged on January 1, 1999, provided the 
bank and savings association charters are merged by that date.

Recent Accounting Developments

In May 1995, the FASB issued SFAS No. 122, "Accounting for Mortgage 
Servicing Rights", amending FASB Statement No. 65, "Accounting for 
Certain Mortgage Banking Activities", to require that a mortgage banking 
enterprise recognize as separate assets rights to service mortgage loans 
for others, however those servicing rights are acquired.  Mortgage 
servicing rights are to be amortized in proportion to and over the 
period of estimated net servicing income and are to be evaluated for 
impairment based on their fair value.  This Statement applies 
prospectively in fiscal years beginning after December 15, 1995, to 
transactions in which a mortgage banking enterprise sells or securitizes 
mortgage loans with servicing rights retained.  The Company adopted SFAS 
No. 122 effective October 1, 1996, with no material impact on the 
Company's financial condition or results of operations.

FASB has issued final standards on earnings per share ("EPS") under two 
new pronouncements, Statement of Financial Accounting Standards No. 128 
and SFAS 129 which include standards for computing and presenting EPS 
and for disclosing information about an entity's capital structure.  The 
standards for EPS apply to entities with publicly held common stock or 
potential common stock, while the standards for disclosure about capital 
structure apply to all entities.  The standards eliminate the 
presentation of primary EPS and require presentation of basic EPS, the 
principal difference being that common stock equivalents will not be 
considered in the computation of basic EPS.  The standards also require 
dual presentation of basic and diluted EPS on the face of the income 
statement for all entities with complex capital structures and require a 
reconciliation of the numerator and denominator of the basic EPS 
computation to the numerator and denominator of the diluted EPS 
computation.  Basic EPS would include no dilution and would be computed 
by dividing income available to common stockholders by the weighted-
average number of common shares outstanding for the period.  Diluted EPS 
would reflect the potential dilution that could occur if the potential 
common shares were exercised or converted into common stock or resulted 
in the issuance of common stock that then shared in the earnings of the 
entity.  SFAS 128 and SFAS 129 are effective for periods ending after 
December 15, 1997 and earlier application is not permitted.  The 
standards require restatement of all prior-period EPS data presented.

                                   Page 6
<PAGE>
Year 2000 - Millennium

Computer systems which are unable to recognize the year 2000 could fail 
or create erroneous results by or at the year 2000 if the problem is not 
corrected.  Many existing computer programs use only two digits to 
identify a year in the date field.  Such programs, designed and 
developed without considering the impact of a change in the century, are 
unable to distinguish the year 2000 from the year 1900.  The year 2000 
issue affects virtually all companies and organizations.  Many companies 
must undertake major projects to address the issue.  Each company's 
potential costs and uncertainties depend on a number of factors, 
including its software and hardware and the nature of its industry.  
Like most financial service providers, the Company could be 
significantly affected by software and hardware both within the Company 
and with other companies with whom it electronically or operationally 
interfaces, including other financial service organizations, vendors 
providing data processing services, other suppliers, customers, 
creditors and borrowers.

Management is aware of the potential problems and the costs required to 
prevent material adverse consequences.  Management has adopted a Year 
2000 Plan, approved by the Board of Directors, and has appointed a 
committee to implement the plan.  The committee has assessed the 
Company's exposure; scheduled necessary inhouse hardware and software 
upgrades and replacements; initiated formal communications with all 
major outside vendors, suppliers, creditors and borrowers; scheduled 
testing of all operating systems; and provided for a contingency plan 
for all critical systems.  The Company believes that its Year 2000 Plan 
will prevent any material adverse impact on the operations of the 
Company and its subsidiary.

Implementation of the Year 2000 Plan involves direct and indirect costs 
to the Company.  Direct costs include hardware and software upgrades and 
replacements, potential charges by third party software vendors, and 
resulting costs if the contingency plan for critical systems must be 
implemented.  Indirect costs principally consist of existing employee 
time related to implementation of the Year 2000 Plan.  Both direct and 
indirect costs will be charged to earnings as incurred.  Such costs have 
not been material to date and based on estimated costs within the Year 
2000 Plan, management does not expect such costs to have a material 
impact on the Company's financial condition or results of operations.





                                  Page 7
<PAGE>
                  TEXARKANA FIRST FINANCIAL CORPORATION



                  MANAGEMENT'S DISCUSSION AND ANALYSIS
            OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 



Financial Condition 

At March 31, 1998, the Company's assets amounted to $184.8 million as 
compared to $178.7 million at September 30, 1997.  The $6.1 million 
(3.4%) increase was primarily due to increases of $3.5 million (16.5%) 
in investments and $2.9 million (48.2%) in cash and cash equivalents, 
partially offset by a decrease of $.4 million (.3%) in loans, net of 
unearned income.  Liabilities increased $5.3 million (3.5%) to $156.6 
million at March 31, 1998 compared to $151.3 million at September 30, 
1997 primarily due to increases of $5.2 million (3.6%) in deposits and 
$1.0 million (20.7%) in borrowed funds, partially offset by a $.8 
million (41.3%) decrease in borrowers' escrow balances (property tax 
payments are made in the first two quarters of the fiscal year).

The increase in investments and the increase in borrowed funds was the 
result of using short-term advances from the FHLB to purchase GNMA 
adjustable rate mortgage-backed securities.  The decrease in loans, net 
of unearned income, was the result of $7.9 million of loans sold during 
the six-month period ended March 31, 1998.

Stockholders' equity amounted to $28.1 million (15.2% of total assets) 
at March 31, 1998 compared to $27.4 million (15.3% of total assets) at 
September 30, 1997.  The retained earnings balance reflects the 
$1,564,000 net income from operations, less the $457,000 in dividends 
declared.  The treasury stock balance reflects the net increase of 
28,313 shares of common stock.

Asset quality remains strong with a ratio of nonperforming assets to 
total assets of .23% and .23% as of March 31, 1998 and September 30, 
1997, respectively, and a ratio of nonperforming loans and debt 
restructurings to total loans of .19% and .19%, respectively.





                                  Page 8
<PAGE>

Comparison of Results of Operations for the Three Month and Six Month 
Periods Ended March 31, 1998 and 1997

General.

For the three months ended March 31, 1998, net income was $808,000 
compared to $712,000 for the same period ended March 31, 1997.  The 
increase of $96,000 (13.5%) in net income was due to an increase of 
$115,000 in net interest income and a decrease of $37,000 in net 
noninterest expense, which were partially offset by an increase of 
$56,000 in income tax expense.

For the three months ended March 31, 1998 and March 31, 1997, return on 
average assets (ROA) was 1.78% and 1.74%, respectively, return on 
average equity (ROE) was 11.78% and 10.82%, respectively, and the 
operating efficiency ratio was 36.9% and 35.6%, respectively.

For the six months ended March 31, 1998, net income was $1,564,000 
compared to $1,331,000 for the same period ended March 31, 1997.  The 
increase of $233,000 (17.5%) in net income was due to an increase of 
$253,000 in net interest income and a decrease of $113,000 in net 
noninterest expense, which were partially offset by an increase of 
$133,000 in income tax expense.

For the six months ended March 31, 1998 and March 31, 1997, return on 
average assets (ROA) was 1.72% and 1.62%, respectively, return on 
average equity (ROE) was 11.32% and 10.06%, respectively, and the 
operating efficiency ratio was 37.4% and 39.0%, respectively.


Net Interest Income.

For the three months ended March 31, 1998, net interest income increased 
$115,000 (7.2%) compared to the same period in 1997.  The increase was 
due to an increase of $358,000 (10.9%) in interest income, partially 
offset by an increase of $243,000 (14.4%) in interest expense.  For the 
second quarter of fiscal 1998 compared to the second quarter of fiscal 
1997, the net interest margin was 3.87% and 3.98%, respectively, and the 
net interest spread was 3.07% and 3.20%, respectively.

For the six months ended March 31, 1998, net interest income increased 
$253,000 (8.1%) compared to the same period in 1997.  The increase was 
due to an increase of $719,000 (11.0%) in interest income, partially 
offset by an increase of $466,000 (13.8%) in interest expense.  For the 
six month period of fiscal 1998 compared to the same period of fiscal 
1997, the net interest margin was 3.82% and 3.89%, respectively, and the 
net interest spread was 3.03% and 3.09%, respectively.


Interest Income.

For the three months ended March 31, 1998, interest income increased 
$358,000 (10.9%) compared to the same period in 1997.  The increase was 
the result of higher average balances and rates.  Average earning assets 
increased to $179.4 million from $162.5 million and the average yield 
increased to 8.23% from 8.19%.

                                  Page 9
<PAGE>
For the six months ended March 31, 1998, interest income increased 
$719,000 (11.0%) compared to the same period in 1997.  The increase was 
the result of higher average balances and rates.  Average earning assets 
increased to $177.5 million from $161.4 million and the average yield 
increased to 8.17% from 8.10%.


Interest Expense.

For the three months ended March 31, 1998, interest expense increased 
$243,000 (14.4%) compared to the same period in 1997.  The increase was 
the result of higher average balances and rates.  Average interest 
bearing liabilities increased to $151.8 million from $137.0 million and 
the average rate increased to 5.16% from 4.99%.

For the six months ended March 31, 1998, interest expense increased 
$466,000 (13.8%) compared to the same period in 1997.  The increase was 
the result of higher average balances and rates.  Average interest 
bearing liabilities increased to $150.2 million from $135.8 million and 
the average rate increased to 5.15% from 5.00%.


Provision for Loan Losses.

No provisions were made for loan losses during the three months ended 
March 31, 1998.  No provision for loan losses has been recorded for the 
last twelve successive quarters due to the consistently favorable ratio 
of nonperforming loans to total loans of .19% at March 31, 1998, .19% at 
September 30, 1997 and .15% at September 30, 1996.

At March 31, 1998 and September 30, 1997, the balance of the allowance 
for loan losses was $1.1 million and $1.1 million, respectively, and the 
ratio of the allowance for loan losses to nonperforming loans was 
408.36% and 401.43%, respectively.  Management believes that the current 
allowance for loan losses is adequate based upon prior loss experience, 
the volume and type of lending conducted by the Association, industry 
standards, past due loans and the current economic conditions in the 
market area.


Noninterest Income.

For the three months ended March 31, 1998, noninterest income increased 
$162,000 (99.4%) compared to the same period in 1997.  The increase was 
primarily due to increases of $87,000 in net gain on sale of loans and 
$46,000 in loan origination fees.  The increases were the result of 
increases in the number and amount of mortgage loans originated and 
sold.

For the six months ended March 31, 1998, noninterest income increased 
$244,000 (72.4%) compared to the same period in 1997.  The increase was 
primarily due to increases of $153,000 in net gain on sale of loans and 
$64,000 in loan origination fees.  The increases were the result of 
increases in the number and amount of mortgage loans originated and 
sold.


                                  Page 10
<PAGE>
Noninterest Expense.

For the three months ended March 31, 1998, noninterest expense increased 
$125,000 (20.0%) compared to the same period in 1997.  The increase was 
primarily due to increases of $102,000 in compensation and benefits, 
$9,000 in occupancy and equipment and $18,000 in SAIF deposit insurance 
premiums, all of which were partially offset by a decrease of $4,000 in 
other expense.

For the six months ended March 31, 1998, noninterest expense increased 
$131,000 (9.7%) compared to the same period in 1997.  The increase was 
primarily due to increases of $138,000 in compensation and benefits, 
$21,000 in occupancy and equipment and $6,000 in other expense, all of 
which were partially offset by a decrease of $34,000 in SAIF deposit 
insurance premiums.


Liquidity and Capital Resources

The Company's assets consist primarily of cash and cash equivalents and 
the shares of the Association's common stock.  The Company has no 
significant liabilities.  The Association's deposit retention and growth 
has remained steady.  The ratio of loans to deposits was 99.8% at March 
31, 1998 and 103.7% at September 30, 1997.  From September 30, 1997 to 
March 31, 1998, investments available for sale increased $3.6 million 
(19.4%) and cash and cash equivalents increased $2.9 million (48.2%).  
Liquidity remains adequate for current operating needs.  At March 31, 
1998, the Association's liquidity ratio was 13.2% compared to the 
required regulatory minimum of 4.0%.

The Company's and the Association's regulatory capital remains well in 
excess of all applicable regulatory requirements.  At March 31, 1998, 
the Company's tangible, core and risk-based capital ratios were 15.19%, 
15.19% and 26.17%, respectively, and the Association's tangible, core 
and risk-based capital ratios were 14.78%, 14.78% and 25.46%, 
respectively, compared to regulatory requirements of 1.5%, 3.0% and 
8.0%, respectively.






                                  Page 11
<PAGE>
                  TEXARKANA FIRST FINANCIAL CORPORATION



                                Part II


Item 1. Legal Proceedings
        Neither the Company nor the Association is involved in any 
        pending legal proceedings other than non-material legal 
        proceedings occurring in the ordinary course of business.


Item 2. Changes in Securities
        None.


Item 3. Defaults Upon Senior Securities
        None.


Item 4. Submission of Matters to a Vote of Security Holders
        The Annual Meeting of Stockholders of the Company was held on 
        January 27, 1998.  The Information required herein is 
        incorporated by reference from the Notice of Annual Meeting of 
        Stockholders and Proxy Statement dated and filed December 22, 
        1997.  Stockholders elected all directors which were proposed 
        for nomination and ratified the appointment of Wilf & Henderson, 
        P.C. as the Company's independent auditors.


Item 5. Other Information
        On August 1, 1997, the Company announced a plan to repurchase up 
        to 89,515 shares (5%) of the Company's outstanding common stock 
        and 32,213 shares have been repurchased as of March 31, 1998.  
        The repurchased shares will be held as treasury stock and will 
        be available for general corporate purposes.

        On March 31, 1998, the Company declared a quarterly dividend in 
        the amount of $.14 per share, payable April 28, 1998 to 
        stockholders of record on April 14, 1998.


Item 6. Exhibits and Reports on Form 8-K
        Exhibit 11 - Earnings Per Share Computation
        No reports on Form 8-K were filed during the period.






                                  Page 12
<PAGE>
                  TEXARKANA FIRST FINANCIAL CORPORATION




                              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. 




                                   TEXARKANA FIRST FINANCIAL CORPORATION




                                               /s/ James W. McKinney
Date:  May 5, 1998                      By:  _________________________
                                               James W. McKinney
                                               Chairman and CEO




                                               /s/ James L. Sangalli
Date:  May 5, 1998                      By:  _________________________
                                               James L. Sangalli
                                               Chief Financial Officer






                                  Page 13
<PAGE>
Form 10-Q
Exhibit 11
EARNINGS PER SHARE COMPUTATION




                             Three Months Ended      Six Months Ended   
                                  March 31,              March 31,      
                            _____________________  _____________________
                               1998       1997        1998       1997   
                            __________ __________  __________ __________

Net Income..................$  807,612 $  712,336  $1,563,883 $1,331,141
                             =========  =========   =========  =========


Weighted average shares:
 Common shares outstanding.. 1,634,042  1,691,255   1,640,167  1,707,703
 Common stock equivalents 
  due to assumed exercise 
  of stock options..........    85,113     26,454      85,253     26,344
                             _________  _________   _________  _________
  Common and 
   common equivalent shares. 1,719,155  1,717,709   1,725,420  1,734,047
                             =========  =========   =========  =========



Earnings per common share:
 Basic......................    $ .494     $ .421      $ .953     $ .779
 Diluted....................    $ .470     $ .415      $ .906     $ .768