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.
Page 11
<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
Page 12
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<FISCAL-YEAR-END> SEP-30-1997
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<ALLOWANCE-CLOSE> 1,145
<ALLOWANCE-DOMESTIC> 1,145
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 260
</TABLE>
