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, 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  April 30, 1997, 
there were issued and outstanding 1,824,405 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, 1997 (unaudited) and September 30, 1996          1

          Consolidated Statements of Income for the three months
          ended March 31, 1997 (unaudited) and 1996 (unaudited)            2

          Consolidated Statements of Cash Flows for the six months
          ended March 31, 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                                        7


Part II.  Other Information

Item 1.   Legal Proceedings                                               11
Item 2.   Changes in Securities                                           11
Item 3.   Defaults Upon Senior Securities                                 11
Item 4.   Submission of Matters to a Vote of Security Holders             11
Item 5.   Other Information                                               11
Item 6.   Exhibits and Reports on Form 8-K                                11
          Signatures                                                      12





























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

                                                  (Unaudited)
                                                    March 31,  September 30,
                                                      1997         1996     
ASSETS
Cash and Cash Equivalents
   Cash & due from banks                           $  1,602     $  1,481
   Interest bearing deposits in other banks           1,818        1,829
   Federal funds sold                                 5,325        5,550
                                                   ________     ________
      Total Cash and Cash equivalents                 8,745        8,860

Investment securities available-for-sale             13,478       14,887
Investment securities held-to-maturity                  --           -- 
Mortgage-backed securities held-to-maturity           1,392        1,518
Federal Home Loan Bank stock                          1,084        1,053
Loans receivable, net                               139,295      135,660
Accrued interest receivable                           1,131        1,207
Foreclosed real estate, net                             223           72
Premises and equipment, net                           2,296        2,014
Other assets                                            450          476
                                                   ________     ________

   Total Assets                                    $168,094     $165,747
                                                   ========     ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits                                           $138,738     $133,071
Advances from borrowers for taxes & insurance         1,012        1,865
Borrowed funds                                           43        2,858
Accrued federal income tax                              549           25
Accrued state income tax                                160          138
Accrued expenses and other liabilities                  647        1,366
                                                   ________     ________
   Total Liabilities                                141,149      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                           13,474       13,052
Common stock acquired by stock benefit plans         (2,248)      (2,147)
Treasury stock, at cost, 150,945 shares and          (2,301)      (1,567)
   99,187 shares September 30, 1996
Retained earnings-substantially restricted           18,023       17,074
Net unrealized gain on investment securities
   available for sale, net of tax                       (23)          (8)
                                                   ________     ________
      Total Stockholders' Equity                     26,945       26,424
                                                   ________     ________

      Total Liabilities and Stockholders' Equity   $168,094     $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      Six Months
                                                    Ended            Ended
                                                   March 31,        March 31,
                                                 1997    1996     1997    1996
Interest Income
   Loans
      First mortgage loans                     $2,646  $2,473   $5,250  $4,910
      Consumer and other loans                    291     204      578     401
   Investment securities                          320     457      634     919
   Mortgage-backed and related securities          26      43       54      86
                                               ______  ______   ______  ______
      Total Interest Income                     3,283   3,177    6,516   6,316
                                               ______  ______   ______  ______
Interest Expense
   Deposits                                     1,686   1,613    3,380   3,208
   Borrowed funds                                   1       1        7       2
                                               ______  ______   ______  ______
      Total Interest Expense                    1,687   1,614    3,387   3,210
                                               ______  ______   ______  ______
      Net Interest Income                       1,596   1,563    3,129   3,106
   Provision for loan losses                       --      --       --      --
                                               ______  ______   ______  ______
      Net Interest Income After Provision       1,596   1,563    3,129   3,106
                                               ______  ______   ______  ______
Noninterest Income
   Gain on sale of repossessed assets, net         --       5       --       5
   Loan origination and commitment fees            60      71      128     145
   Investment securities gains (losses), net       --      --       --      --
   Other                                          103      83      209     177
                                               ______  ______   ______  ______
      Total Noninterest Income                    163     159      337     327
                                               ______  ______   ______  ______
Noninterest Expense
   Compensation and benefits                      433     333      908     673
   Occupancy and equipment                         42      39       84      80
   SAIF deposit insurance premium                   5      73       79     156
   Provision and loss on foreclosed real estate    --      --       --      --
   Other                                          146     166      280     291
                                               ______  ______   ______  ______
      Total Noninterest Expense                   626     611    1,351   1,200
                                               ______  ______   ______  ______
Income Before Income Taxes                      1,133   1,111    2,115   2,233
Income tax expense                                421     401      784     796
                                               ______  ______   ______  ______
Net Income                                     $  712  $  710   $1,331  $1,437
                                               ======  ======   ======  ======


Weighted average shares outstanding           1,691.3 1,850.8  1,707.7 1,849.6
Earnings Per Share                              $0.42   $0.38    $0.78   $0.78
Dividends per share                           $0.1125 $0.1125  $0.2250 $0.2250


[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)

                                                    Six Months Ended March 31,
                                                           1997     1996
Cash Flows From Operating Activities:
  Interest and dividends received                        $6,522   $6,255
  Miscellaneous income received                             337      311
  Interest paid                                          (1,043)  (1,185)
  Cash paid to suppliers and employees                   (1,840)    (722)
  Cash from REO operations                                   --       24
  Cash paid for REO operations                               --      (12)
  Cash from loans sold                                    1,173    1,313
  Cash paid for loans originated to sell                 (1,051)  (1,313)
  Income taxes paid                                        (237)    (852)
                                                         ______   ______
    Net Cash Provided By Operating Activities             3,861    3,819
                                                         ______   ______

Cash Flows From Investing Activities:
  Proceeds from maturities of investment securities       1,500    9,000
  Proceeds from sale of securities available for sale     2,420       --
  Purchases of investment securities                     (2,500)  (6,975)
  Collection of principal on mortgage-backed securities     126      133
  Recovery of investment in service bureau                   --        1
  Purchase of fixed assets                                 (322)     (14)
  Net (increase) in loans                                (3,792)  (5,742)
  Proceeds from sale of REO and other REO recoveries          6        5
                                                         ______   ______
    Net Cash Provided (Used) By Investing Activities     (2,562)  (3,592)
                                                         ______   ______

Cash Flows From Financing Activities:
  Net increase (decrease) in savings,
    demand deposits, and certificates of deposit          3,415      318
  Net increase (decrease) in escrow funds                  (853)  (1,089)
  Repayment of funds borrowed                            (2,815)      --
  Purchase of treasury stock                               (734)      --
  Purchase of common stock for employee benefit plans        (9)    (296)
  Cash dividends paid on common stock                      (418)    (223)
                                                         ______   ______
    Net Cash (Used) By Financing Activities              (1,414)  (1,290)
                                                         ______   ______

    Net (Decrease) In Cash and Cash Equivalents            (115)  (1,063)
                                                         ______   ______

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

Cash and Cash Equivalents, end of period                 $8,745  $12,785
                                                         ======   ======



[FN]
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,
                                                           1997     1996

Reconciliation of net income to cash provided
    by operating activities:
Net income                                               $1,331   $1,437
                                                         ______   ______
Adjustments to reconcile net income to cash provided
     by operating activities:
  Depreciation                                               40       37
  Amortization of discounts and premiums                    (23)       1
  Amortization of deferred loan fees                         (6)      (8)
  Amortization of common stock acquired by benefit plans    260       99
  (Gain) loss on sales of real estate owned                  --       (4)
  Interest expense credited to saving accounts            2,249    2,136
  Dividend and interest income added to investments         (53)     (51)
  Loan fees deferred                                         13        5
Changes in assets and liabilities:
  (Increase) decrease in interest receivable                 76       (8)
  Increase (decrease) in accrued interest payable            95     (112)
  Increase (decrease) in income tax payable                 554      (56)
  Net increase(decrease) in other receivables & payables   (675)     343
                                                         ______   ______
    Total adjustments                                     2,530    2,382
                                                         ______   ______

Net cash provided by operations                          $3,861   $3,819
                                                         ======   ======

Supplemental schedule of noncash investing
  and financing activities:
    FHLB stock dividends not redeemed                    $   31   $   31
    Dividends declared and unpaid                           206      223
    Acquisition of real estate in settlement of loans       157       --
    Net unrealized gain (loss) on investment securities
      available for sale                                     24      127






















                                 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, 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 
two quarters, earnings for the full fiscal year will be impacted by any 
additional 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.


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.


                                 Page 5
<PAGE>
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, and expects no material impact on the Company's 
financial condition or results of operations.




















                                 Page 6
<PAGE>
                    TEXARKANA FIRST FINANCIAL CORPORATION


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


Financial Condition 

At March 31, 1997, the Company's assets amounted to $168.1 million as compared 
to $165.7 million at September 30, 1996.  The $2.3 million (1.4%) increase was 
primarily due to an increase of $3.6 million in loans, partially offset by a 
$1.5 million decrease in investments.  Liabilities increased $1.8 million 
(1.3%) to $141.1 million at March 31, 1997 compared to $139.3 million at 
September 30, 1996 primarily due to a $5.7 million increase in deposits which 
was partially offset by a $2.8 million decrease in borrowed funds and a 
$853,000 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 (16.0% of total assets) at 
March 31, 1997 compared to $26.4 million (15.9% of total assets) at September 
30, 1996.  The retained earnings balance reflects the $1.3 million net income 
from operations, less the $382,000 in dividends declared.  The treasury stock 
balance reflects the purchases of 51,758 shares of common stock, at a cost of 
$734,000.  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 investments 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 .47% and .17% as of March 31, 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 Six Month Periods 
Ended March 31, 1997 and 1996

General.  For the three months ended March 31, 1997, net income was $712,000 
($.42 per share) compared to $710,000 ($.38 per share) for the same period 
ended March 31, 1996.  The increase of $2,000 (.3%) in net income was due to 
an increase of $33,000 in net interest income, partially offset by an increase 
of $11,000 in net noninterest expense and an increase of $20,000 in income tax 
expense.

For the three months ended March 31, 1997 and March 31, 1996, return on 
average assets (ROA) was 1.74% and 1.74%, respectively, and return on average 
equity (ROE) was 10.82% and 8.47%, respectively.






                                 Page 7
<PAGE>
For the six months ended March 31, 1997, net income was $1.3 million ($.78 per 
share) compared to $1.4 million ($.78 per share) for the same period ended 
March 31, 1996.  The decrease of $106,000 (7.4%) in net income was due to an 
increase of $141,000 in net noninterest expense, partially offset by an 
increase of $23,000 in net interest income and a decrease of $12,000 in income 
tax expense.

For the six months ended March 31, 1997 and March 31, 1996, return on average 
assets (ROA) was 1.62% and 1.77%, respectively, and return on average equity 
(ROE) was 10.06% and 8.59%, 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 March 31, 1997, 150,945 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 March 31, 1997, net interest 
income increased $33,000 (2.1%) compared to the same period in 1996.  The 
increase was due to an increase of $106,000 (3.3%) in interest income, 
partially offset by an increase of $73,000 (4.5%) in interest expense.  For 
the second quarter of fiscal 1997 compared to the second quarter of fiscal 
1996, the net interest margin was 3.98% and 3.92%, respectively, and the net 
interest spread was 3.20% and 2.88%, respectively.

For the six months ended March 31, 1997, net interest income increased $23,000 
(.7%) compared to the same period in 1996.  The increase was due to an 
increase of $200,000 (3.2%) in interest income, partially offset by an 
increase of $177,000 (5.5%) in interest expense.  For the six month period of 
fiscal 1997 compared to the same period of fiscal 1996, the net interest 
margin was 3.89% and 3.91%, respectively, and the net interest spread was 
3.09% and 2.87%, respectively.

Interest Income.  For the three months ended March 31, 1997, interest income 
increased $106,000 (3.3%) compared to the same period in 1996.  The increase 
was primarily the result of higher average balances.

For the six months ended March 31, 1997, interest income increased $200,000 
(3.2%) compared to the same period in 1996.  The increase was primarily the 
result of higher average balances.

Interest Expense.  For the three months ended March 31, 1997, interest expense 
increased $73,000 (4.5%) compared to the same period in 1996.  The increase 
was the result of higher average balances, partially offset by slightly lower 
rates. 

For the six months ended March 31, 1997, interest expense increased $177,000 
(5.5%) compared to the same period in 1996.  The increase was the result of 
higher average balances, partially offset by slightly lower rates. 









                                 Page 8
<PAGE>
Provision for Loan Losses.  No provisions were made for loan losses during the 
six months ended March 31, 1997.  No provision for loan losses has been 
recorded for the last eight successive quarters due to the consistently 
favorable ratio of nonperforming loans to total loans of .40% at March 31, 
1997, .18% at December 31, 1996 and .15% at September 30, 1996.  At March 31, 
1997 and March 31, 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 201.23% and 431.95%, 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, 1997, noninterest 
income increased $4,000 (2.5%) compared to the same period in 1996.  The 
increase was due to an increase of $20,000 in other noninterest income, 
partially offset by a decrease of $11,000 in loan origination fees.  The 
increase in other noninterest income was primarily due to increases in service 
charge income and gains from the sale of originated mortgage loans.  The 
decrease in loan origination fees was primarily the result of a decline in 
loan originations.

For the six months ended March 31, 1997, noninterest income increased $10,000 
(3.1%) compared to the same period in 1996.  The increase was due to an 
increase of $32,000 in other noninterest income, partially offset by a 
decrease of $17,000 in loan origination fees.  The increase in other 
noninterest income was primarily due to increases in service charge income and 
gains from the sale of originated mortgage loans.  The decrease in loan 
origination fees was primarily the result of a decline in loan originations.

Noninterest Expense.  For the three months ended March 31, 1997, noninterest 
expense increased $15,000 (2.5%) compared to the same period in 1996.  The 
increase was due primarily to increases of $25,000 in compensation expense and 
$75,000 in benefits expense, which were partially offset by decreases of 
$68,000 in SAIF deposit insurance premiums and $20,000 in other noninterest 
expense.  The increases in compensation expense, benefits expense and other 
noninterest expense were primarily due to the reasons stated below for the six 
month period.

For the six months ended March 31, 1997, noninterest expense increased 
$151,000 (12.6%) compared to the same period in 1996.  The increase was due 
primarily to increases of $60,000 in compensation expense and $173,000 in 
benefits expense, which were partially offset by decreases of $77,000 in SAIF 
deposit insurance premiums and $11,000 in other noninterest expense.  The 
increase in compensation expense was 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 due primarily 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.











                                 Page 9
<PAGE>
Liquidity and Capital Resources

The Company's assets consist primarily of cash and cash equivalents, 
investment securities and the shares of the Association's common stock.  The 
Company has no significant liabilities.  The Association's deposit retention 
has remained steady and loan demand continues to be funded without the use of 
borrowed funds.  As a result, liquidity remains adequate for current operating 
needs.

As of March 31, 1997, the Company's and the Association's regulatory capital 
was well in excess of all applicable regulatory requirements.  At March 31, 
1997, the Company's tangible, core and risk-based capital ratios were 16.0%, 
16.0% and 27.4%, respectively, and the Association's tangible, core and risk-
based capital ratios were 15.9%, 15.9% and 27.2%, respectively, compared to 
regulatory requirements of 1.5%, 3.0% and 8.0%, respectively.















































                                 Page 10
<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 21, 
1997.  The Information required herein is incorporated by reference from the 
Notice of Annual Meeting of Stockholders and Proxy Statement dated and filed 
December 23, 1996.  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 October 30, 1996, the Company announced a plan to repurchase up to 94,228 
shares (5%) of the Company's outstanding common stock and 51,758 shares have 
been repurchased as of March 31, 1997.  The repurchased shares will be held as 
treasury stock and will be available for general corporate purposes.

At the Board of Directors meeting held on January 21, 1997, James W. McKinney 
was elected Chairman of the Board and reelected chief Executive Officer, 
Donald N. Morriss was elected Vice Chairman of the Board, and John E. Harrison 
was elected President and reelected Chief Operating Officer.

On March 27, 1997, the Company declared a quarterly dividend in the amount of 
$.1125 per share, payable April 25, 1997 to stockholders of record on April 
11, 1997.

Item 6.  Exhibits and Reports on Form 8-K.
No reports on Form 8-K were filed during the period.





















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<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 11, 1997                    By:  ______________________________
                                                 James W. McKinney
                                                 Chairman and CEO





                                             /s/ James L. Sangalli
Date:  May 11, 1997                    By:  ______________________________
                                                 James L. Sangalli
                                                 Chief Financial Officer























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