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  June 30, 1997

                                  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)


                            (501) 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 July 31, 1997, there 
were issued and outstanding 1,790,305 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 June 30, 1997 (unaudited) and September 30, 1996        1

          Consolidated Statements of Income for the three and
          nine months ended June 30, 1997 and 1996 (unaudited)          2

          Consolidated Statements of Cash Flows for the nine months
          ended June 30, 1997 (unaudited) and 1996 (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)
                                                    June 30,   September 30,
                                                      1997         1996
ASSETS
Cash and Cash Equivalents
   Cash & due from banks                          $    995     $  1,481
   Interest bearing deposits in other banks            461        1,829
   Federal funds sold                                3,625        5,550
                                                   _______      _______
      Total Cash and Cash equivalents                5,081        8,860
Investment securities available-for-sale            13,870       14,887
Investment securities held-to-maturity                 --           -- 
Mortgage-backed securities held-to-maturity          3,035        1,518
Federal Home Loan Bank stock                         1,100        1,053

Loans receivable, net of unearned income           145,179      136,805
Allowance for loan losses                            1,145        1,145
                                                   _______      _______
   Loans receivable, net                           144,034      135,660

Accrued interest receivable                          1,238        1,207
Foreclosed real estate, net                            207           72
Premises and equipment, net                          2,345        2,014
Other assets                                           448          476
                                                   _______      _______
   Total Assets                                   $171,358     $165,747
                                                   =======      =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits                                          $140,132     $133,071
Advances from borrowers for taxes & insurance        1,398        1,865
Borrowed funds                                       1,552        2,858
Accrued federal income tax                             385           25
Accrued state income tax                               182          138
Accrued expenses and other liabilities                 802        1,366
                                                   _______      _______
   Total Liabilities                               144,451      139,323
                                                   _______      _______

Commitments and contingencies                          --           -- 

Common stock, $0.01 par value;
   15,000,000 shares authorized;
   1,983,750 shares issued and outstanding              20           20
Additional paid-in capital                          13,499       13,052
Common stock acquired by stock benefit plans        (2,203)      (2,147)
Treasury stock, at cost, 193,445 shares and         (3,029)      (1,567)
   99,187 shares September 30, 1996
Retained earnings-substantially restricted          18,590       17,074
Net unrealized gain on investment securities
   available for sale, net of tax                       30           (8)
                                                   _______      _______
      Total Stockholders' Equity                    26,907       26,424
                                                   _______      _______
      Total Liabilities and Stockholders' Equity  $171,358     $165,747
                                                   =======      =======
[FN]
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      Nine Months
                                                  Ended            Ended   
                                                 June 30,         June 30,
                                               1997    1996     1997    1996
Interest Income
   Loans
      First mortgage loans                   $2,758  $2,506   $8,008  $7,416
      Consumer and other loans                  310     228      888     629
   Investment securities                        309     411      943   1,330
   Mortgage-backed and related securities        38      40       92     126
                                              _____   _____    _____   _____
      Total Interest Income                   3,415   3,185    9,931   9,501
                                              _____   _____    _____   _____
Interest Expense
   Deposits                                   1,735   1,605    5,115   4,813
   Borrowed funds                                 9       1       16       3
                                              _____   _____    _____   _____
      Total Interest Expense                  1,744   1,606    5,131   4,816
                                              _____   _____    _____   _____
      Net Interest Income                     1,671   1,579    4,800   4,685
   Provision for loan losses                     --      --       --      --
                                              _____   _____    _____   _____
      Net Interest Income After Provision     1,671   1,579    4,800   4,685
                                              _____   _____    _____   _____
Noninterest Income
   Gain on sale of repossessed assets, net        8      11        8      16
   Loan origination and commitment fees          79      93      207     238
   Investment securities gains (losses), net     --      --       --      --
   Other                                        115     122      324     299
                                              _____   _____    _____   _____
      Total Noninterest Income                  202     226      539     553
                                              _____   _____    _____   _____
Noninterest Expense
   Compensation and benefits                    421     414    1,329   1,087
   Occupancy and equipment                       40      43      124     123
   SAIF deposit insurance premium                22      72      101     228
   Provision & loss on foreclosed real estate    --      --       --      --
   Other                                        119     128      399     419
                                              _____   _____    _____   _____
      Total Noninterest Expense                 602     657    1,953   1,857
                                              _____   _____    _____   _____
Income Before Income Taxes                    1,271   1,148    3,386   3,381
Income tax expense                              474     404    1,258   1,200
                                              _____   _____    _____   _____

Net Income                                   $  797  $  744   $2,128  $2,181
                                              =====   =====    =====   =====

Weighted average shares outstanding         1,675.6 1,788.3  1,697.0 1,829.1
Earnings Per Share                            $0.48   $0.42    $1.25   $1.19
Dividends per share                         $0.1400 $0.1125  $0.3650 $0.3375

[FN]
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)

                                                    Nine Months Ended June 30,
                                                           1997     1996
Cash Flows From Operating Activities:
   Interest and dividends received                      $ 9,804  $ 9,308
   Miscellaneous income received                            531      472
   Interest paid                                         (1,616)  (1,739)
   Cash paid to suppliers and employees                  (2,217)  (1,700)
   Cash from REO operations                                  --       38
   Cash paid for REO operations                              --      (18)
   Cash from loans sold                                   1,488    2,092
   Cash paid for loans originated to sell                (1,051)  (2,092)
   Income taxes paid                                       (854)  (1,253)
                                                         ______   ______
      Net Cash Provided By Operating Activities           6,085    5,108
                                                         ______   ______

Cash Flows From Investing Activities:
   Proceeds from maturities of investment securities      4,840    9,000
   Purchases of investment securities                    (3,800)  (9,585)
   Purchases of mortgage-backed securities               (1,725)      --
   Collection of principal on mortgage-backed securities    207      237
   Purchase of fixed assets                                (379)     (72)
   Net (increase) in loans                               (8,843)  (8,599)
   Cash paid for REO held for resale                        (46)      --
   Proceeds from sale of REO and other REO recoveries        77       77
                                                         ______   ______
      Net Cash Provided (Used) By Investing Activities   (9,669)  (8,942)
                                                         ______   ______

Cash Flows From Financing Activities:
   Net increase (decrease) in savings,
      demand deposits, and certificates of deposit        3,673      505
   Net increase (decrease) in escrow funds                 (467)    (584)
   Repayment of funds borrowed                           (1,306)      --
   Purchase of treasury stock                            (1,462)    (514)
   Purchase of common stock for employee benefit plans       (9)    (932)
   Cash dividends paid on common stock                     (624)    (446)
                                                         ______   ______
      Net Cash (Used) By Financing Activities              (195)  (1,971)
                                                         ______   ______

      Net (Decrease) In Cash and Cash Equivalents        (3,779)  (5,805)
                                                         ______   ______

Cash and Cash Equivalents, beginning of period            8,860   13,848
                                                         ______   ______

Cash and Cash Equivalents, end of period                $ 5,081  $ 8,043
                                                         ======   ======


[FN]
The accompanying notes are an integral part of this statement.



                                    Page 3
<PAGE>
                     TEXARKANA FIRST FINANCIAL CORPORATION


                 SUPPLEMENTAL INFORMATION CONCERNING CASH FLOWS

                                                    Nine Months Ended June 30,
                                                           1997     1996

Reconciliation of net income to cash provided
      by operating activities:
Net income                                              $ 2,128  $ 2,181
                                                         ______   ______
Adjustments to reconcile net income to cash provided
      by operating activities:
   Depreciation                                              48       57
   Amortization of discounts and premiums                   (22)       2
   Amortization of deferred loan fees                       (29)     (11)
   Amortization of common stock acquired by benefit plans   365      153
   (Gain) loss on sales of real estate owned                 (8)     (16)
   Interest expense credited to saving accounts           3,387    3,183
   Dividend and interest income added to investments        (80)     (76)
   Loan fees deferred                                        36        8
Changes in assets and liabilities:
   (Increase) decrease in interest receivable               (32)    (162)
   Increase (decrease) in accrued interest payable          128     (105)
   Increase (decrease) in income tax payable                404      (53)
   (Increase) decrease in loans held for sale               437       --
   Net increase(decrease) in other receivables & payables  (677)     (53)
                                                         ______   ______
      Total adjustments                                   3,957    2,927
                                                         ______   ______

Net cash provided by operations                         $ 6,085  $ 5,108
                                                         ======   ======

Supplemental schedule of noncash investing
   and financing activities:
      FHLB stock dividends not redeemed                 $    47  $    46
      Dividends declared and unpaid                         251      220
      Acquisition of real estate in settlement of loans     157       86
      Loans made to finance sale of REO                      52       17
      Net unrealized gain (loss) on investment securities
         available for sale                                  58      (55)



















                                    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 nine months ended June 30, 1997 
are not necessarily indicative of the results to be expected for the year 
ending September 30, 1997.  Although net income was consistent for the first 
three quarters, earnings for the full fiscal year will be impacted by the 
repurchase of Company stock, the new SAIF assessment rate 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, 1996, contained in the Company's 
annual report to stockholders.



Earnings Per Share

Earnings per share is computed on the basis of the weighted-average number of 
shares of common stock outstanding.  Stock options outstanding had no material 
dilutive effect on 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.









                                    Page 5
<PAGE>
Borrowed Funds

In September 1996, the Company borrowed $475,000 from a local financial 
institution on a short-term basis, and sold $2.4 million of securities with 
repurchase agreements.  The loan and the repurchase agreements matured in 
October 1996 and were repaid at that time.  The borrowings provided cash 
needed on a temporary basis due to the payment of the $3.00 per share special 
one-time distribution to stockholders on September 25, 1996.  Borrowings were 
utilized to minimize any loss from the sale of securities.

In May 1997, the Association initiated a short-term, fixed rate advance from 
the Federal Home Loan Bank ("FHLB") in the amount of $1.6 million.  At June 
30, 1997, the balance was $1.5 million, at 5.53% maturing July 21, 1997.  The 
Association intends to continue short-term borrowings from the FHLB.



Recent Legislation

The deposits of the Association are currently insured by the Savings 
Association Insurance Fund ("SAIF").  The underfunded status of the SAIF has 
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.

As a result of this legislation, the Association's assessment amounted to 
$835,000 which was included in expense in September, the fourth quarter of 
fiscal 1996, and paid in November, the first quarter of fiscal 1997.  While 
the one-time special assessment had a significant impact on the fiscal 1996 
earnings, the resulting lower premiums will benefit future earnings.



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.


                                    Page 6
<PAGE>
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 7
<PAGE>
                     TEXARKANA FIRST FINANCIAL CORPORATION


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


Financial Condition 

At June 30, 1997, the Company's assets amounted to $171.4 million as compared 
to $165.7 million at September 30, 1996.  The $5.6 million (3.4%) increase was 
primarily due to an increase of $8.4 million (6.1%) in loans, partially offset 
by a $3.8 million (42.7%) decrease in cash and cash equivalents.  Liabilities 
increased $5.1 million (3.7%) to $144.5 million at June 30, 1997 compared to 
$139.3 million at September 30, 1996 primarily due to a $7.1 million (5.3%) 
increase in deposits which was partially offset by a $1.3 million (45.7%) 
decrease in borrowed funds and a $467,000 (25.0%) decrease in borrowers' 
escrow balances (property tax payments are made in the first two quarters of 
the fiscal year).

Stockholders' equity amounted to $26.9 million (15.7% of total assets) at June 
30, 1997 compared to $26.4 million (15.9% of total assets) at September 30, 
1996.  The retained earnings balance reflects the $2.1 million net income from 
operations, less the $612,000 in dividends declared.  The treasury stock 
balance reflects the purchases of 94,258 shares of common stock, at a cost of 
$1.5 million.  The change in the balance of additional paid-in capital is 
primarily the result of the purchase of an additional 26,730 shares of the 
Company's common stock by the ESOP plan at a cost of $395,000.  The change in 
the balance of common stock acquired by stock benefit plans reflects the 
purchase of the additional ESOP shares partially offset by vesting of shares 
in the benefit plans.

The increase in deposits and the decrease in cash and cash equivalents 
provided the cash needed to fund the increase in loans, the repayment of 
borrowed funds and the repurchase of common shares to be held as treasury 
stock.  The additional ESOP shares were purchased with the proceeds of 
dividends paid on unallocated shares.

Asset quality remains strong with a ratio of nonperforming assets to total 
assets of .46% and .17% as of June 30, 1997 and September 30, 1996, 
respectively, and a ratio of nonperforming loans and debt restructurings to 
total loans of .40% and .15%, respectively.



Comparison of Results of Operations for the Three Month and Nine Month Periods 
Ended June 30, 1997 and 1996


General.  For the three months ended June 30, 1997, net income was $797,000 
($.48 per share) compared to $744,000 ($.42 per share) for the same period 
ended June 30, 1996.  The increase of $53,000 (7.1%) in net income was due to 
an increase of $92,000 in net interest income and a decrease of $31,000 in net 
noninterest expense, which were partially offset by an increase of $70,000 in 
income tax expense.

For the three months ended June 30, 1997 and June 30, 1996, return on average 
assets (ROA) was 1.87% and 1.82%, respectively, and return on average equity 
(ROE) was 11.79% and 8.96%, respectively.


                                    Page 8

<PAGE>
For the nine months ended June 30, 1997, net income was $2.1 million ($1.25 
per share) compared to $2.2 million ($1.19 per share) for the same period 
ended June 30, 1996.  The decrease of $53,000 (2.4%) in net income was due to 
an increase of $110,000 in net noninterest expense and an increase of $58,000 
in income tax expense, partially offset by an increase of $115,000 in net 
interest income.

For the nine months ended June 30, 1997 and June 30, 1996, return on average 
assets (ROA) was 1.70% and 1.79%, respectively, and return on average equity 
(ROE) was 10.64% and 8.71%, respectively.

Beginning in the third quarter of fiscal 1996, the Company began repurchasing 
common stock to be held as treasury stock and for employee benefit plans.  As 
of June 30, 1997, 193,448 shares were purchased to be held as treasury stock 
and 62,935 shares were purchased for employee benefit plans.  In the fourth 
quarter of fiscal 1996, a $5.7 million special distribution ($3.00 per share) 
was paid to stockholders.  The resulting reductions of earning assets 
adversely affected interest income and the rate of return on average assets 
while the resulting reductions of stockholders' equity favorably affected the 
rate of return on average equity.



Net Interest Income.  For the three months ended June 30, 1997, net interest 
income increased $92,000 (5.8%) compared to the same period in 1996.  The 
increase was due to an increase of $230,000 (7.2%) in interest income, 
partially offset by an increase of $138,000 (8.6%) in interest expense.  For 
the third quarter of fiscal 1997 compared to the third quarter of fiscal 1996, 
the net interest margin was 4.03% and 3.96%, respectively, and the net 
interest spread was 3.25% and 2.96%, respectively.

For the nine months ended June 30, 1997, net interest income increased 
$115,000 (2.5%) compared to the same period in 1996.  The increase was due to 
an increase of $430,000 (4.5%) in interest income, partially offset by an 
increase of $315,000 (6.5%) in interest expense.  For the nine month period of 
fiscal 1997 compared to the same period of fiscal 1996, the net interest 
margin was 3.93% and 3.92%, respectively, and the net interest spread was 
3.15% and 2.90%, respectively.



Interest Income.  For the three months ended June 30, 1997, interest income 
increased $230,000 (7.2%) compared to the same period in 1996.  The increase 
was the result of higher average balances and rates.  Average earning assets 
increased to $166.5 million from $160.2 million and the average yield 
increased to 8.23% from 7.99%.

For the nine months ended June 30, 1997, interest income increased $430,000 
(4.5%) compared to the same period in 1996.  The increase was the result of 
higher average balances and rates.  Average earning assets increased to $163.1 
million from $159.5 million and the average yield increased to 8.14% from 
7.96%.



Interest Expense.  For the three months ended June 30, 1997, interest expense 
increased $138,000 (8.6%) compared to the same period in 1996.  The increase 
was the result of higher average balances, partially offset by slightly lower 
rates.  Average interest bearing liabilities increased to $140.5 million from 
$128.3 million and the average rate declined to 4.98% from 5.03%

                                    Page 9

<PAGE>
For the nine months ended June 30, 1997, interest expense increased $315,000 
(6.5%) compared to the same period in 1996.  The increase was the result of 
higher average balances, partially offset by slightly lower rates.  Average 
interest bearing liabilities increased to $137.3 million from $127.2 million 
and the average rate declined to 5.00% from 5.06%.



Provision for Loan Losses.  No provisions were made for loan losses during the 
nine months ended June 30, 1997.  No provision for loan losses has been 
recorded for the last nine successive quarters due to the consistently 
favorable ratio of nonperforming loans to total loans of .40% at June 30, 
1997, .40% at March 31, 1997, .15% at September 30, 1996 and .17% at September 
30, 1995.

At June 30, 1997 and September 30, 1996, 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 196.74% and 540.09%, 
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 June 30, 1997, noninterest 
income decreased $24,000 (10.6%) compared to the same period in 1996.  The 
decrease was primarily due to a decrease of $14,000 in loan origination fees.  
The decrease in loan origination fees was primarily the result of a decline in 
the number of mortgage loans originated.

For the nine months ended June 30, 1997, noninterest income decreased $14,000 
(2.5%) compared to the same period in 1996.  The increase was primarily due to 
a decrease of $31,000 in loan origination fees, partially offset by an 
increase of $25,000 in other noninterest income.  The decrease in loan 
origination fees was primarily the result of a decline in the number of 
mortgage loans originated and an increase in the number of independent third-
party appraisals.  The increase in other noninterest income was primarily due 
to increases in service charge income and gains from the sale of originated 
mortgage loans.

For the nine months ended June 30, 1997 compared to the same period in 1996, 
the number of originated mortgage loans declined 9.7% while the amount of 
originations declined 2.6%, and the number of originated commercial and 
consumer loans increased 30.2% while the amount of originations increased 
46.4%.



Noninterest Expense.  For the three months ended June 30, 1997, noninterest 
expense decreased $55,000 (8.4%) compared to the same period in 1996.  The 
decrease was primarily due to a decrease of $50,000 in SAIF deposit insurance 
premiums.







                                    Page 10

<PAGE>
For the nine months ended June 30, 1997, noninterest expense increased $96,000 
(5.2%) compared to the same period in 1996.  The increase was primarily due to 
increases of $67,000 in compensation expense and $171,000 in benefits expense, 
which were partially offset by decreases of $127,000 in SAIF deposit insurance 
premiums and $20,000 in other noninterest expense.  The increase in 
compensation expense was primarily due to the addition of two staff members, 
one in the second quarter and one in the third quarter of fiscal 1996.  The 
increase in benefits expense was primarily due to accrued expenses for the 
annual vesting of 20% of the shares awarded under the Management Recognition 
Plans for directors and officers, approved by stockholders in January of 1996.  
The decrease in other noninterest expense was primarily due to a decrease in 
legal expense.



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.  Although the ratio of loans to deposits increased to 103.6% at June 
30, 1997 from 102.8% at September 30, 1996, liquidity remains adequate for 
current operating needs.  At June 30, 1997, the Association's liquidity ratio 
was 11.9% compared to the required regulatory minimum of 5.0%.

The Company's and the Association's regulatory capital remains well in excess 
of all applicable regulatory requirements.  At June 30, 1997, the Company's 
tangible, core and risk-based capital ratios were 15.7%, 15.7% and 26.2%, 
respectively, and the Association's tangible, core and risk-based capital 
ratios were 15.6%, 15.6% and 26.1%, 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

         None.



Item 5.  Other Information

On October 30, 1996, the Company announced a plan to repurchase up to 94,228 
shares (5%) of the Company's outstanding common stock and all shares were 
repurchased as of June 30, 1997.  The repurchased shares will be held as 
treasury stock and will be available for general corporate purposes.

On June 24, 1997, the Company declared a quarterly dividend in the amount of 
$.14 per share, payable July 25, 1997 to stockholders of record on July 11, 
1997.  The dividend of $.14 represents a 24.4% increase over the previous 
quarterly rate of $.1125 per share.



Item 6.  Exhibits and Reports on Form 8-K

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:  August 7, 1997                 By:  ______________________________
                                             James W. McKinney
                                             Chairman and CEO





                                             /s/ James L. Sangalli
Date:  August 7, 1997                 By:  ______________________________
                                             James L. Sangalli
                                             Chief Financial Officer























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