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<title>First Financial Corporation Form 8-K by www.edgar2.com</title>


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<p align=center style='text-align:center'>&nbsp;</p>











<p align=center style='text-align:center'>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, D.C. 20549</p>





<p align=center style='text-align:center'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>





<p align=center style='margin-left:0pt;text-align:center'><b>FORM 8-K</b></p>



<p align=center style='text-align:center'><b>CURRENT REPORT<br>
</b>Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934</p>

<p align=center style='text-align:center'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>



<p align=center style='text-align:center'>Date of Report <i>(Date of earliest event reported)</i>:
February 21, 2006</p>



<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center;
text-indent:0pt'><font size="5">First
Financial Corporation<br>
</font><i>(Exact name of registrant as specified in its charter)</i></p>
<table border="0" width="100%" id="table1">
	<tr>
		<td width="403" align="center">Texas</td>
		<td align="center">0-5559</td>
		<td align="center" width="427">74-1502313</td>
	</tr>
	<tr>
		<td width="403" align="center">(<i>State
of incorporation</i>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		</td>
		<td align="center">(<i>Commission File Number</i>)</td>
		<td align="center" width="427">(<i>IRS
Employer Identification No.)</i></td>
	</tr>
	<tr>
		<td width="403" align="center">&nbsp;</td>
		<td align="center">&nbsp;</td>
		<td align="center" width="427">&nbsp;</td>
	</tr>
	<tr>
		<td width="403" align="center">



<p align=left style='margin-left:36.0pt;text-align:left;text-indent:0pt'>800
Washington Ave, Waco, Texas</td>
	<td align="center">&nbsp;</td>
	<td align="center" width="427">76701</td>
	</tr>
	<tr>
		<td width="403" align="center">

<p align=left style='margin-left:36.0pt;text-align:left;text-indent:0pt'>(<i>Address of principal executive offices</i>)
	</td>
	<td align="center">&nbsp;</td>
	<td align="center" width="427">(<i>Zip Code</i>)</td>
</tr>
</table>





<p align=center style='text-align:center'>(254) 757-2424<br>
<i>(Registrant's telephone number, including area code)</i></p>







<p>Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligations of the registrant under any of
the following provisions:</p>



<p>[&nbsp; ]&nbsp; Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</p>



<p>[&nbsp; ]&nbsp; Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</p>



<p>[&nbsp; ]&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</p>



<p>[&nbsp; ]&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</p>

<p>&nbsp;</p>

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<p><b>Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry into a
Material Definitive Agreement.</b></p>

<p style='text-indent:36.0pt'>On February 21, 2006, First Preference Mortgage Corporation
(&quot;FPMC&quot;), a wholly owned subsidiary of First Financial Corporation <a
name="_DV_C8">entered into a Stipulation of Settlement (the &quot;Settlement
Agreement&quot;) with</a><a name="_DV_M25"></a> Washington<a
name="_DV_C9"> Mutual Bank, FA,&nbsp; (&quot;Washington</a> Mutual<a
name="_DV_C10">&quot;)</a>. The<a
name="_DV_C11"> Settlement</a>
Agreement settles claims by Washington Mutual<a name="_DV_C12"> </a><a
name="_DV_C13">as to defects in 13 loans that had been sold by FPMC to</a><a
name="_DV_M29"></a> Washington Mutual <a name="_DV_M30"></a>under <a
name="_DV_M31"></a>a loan purchase agreement<a name="_DV_C17">.&nbsp; </a><a
name="_DV_C20">The aggregate amount of these loans, as of the date of
execution of the Settlement Agreement</a><a name="_DV_C22">, was
$1,211,447.</a></p>



<p style='text-indent:36.0pt'><a name="_DV_C24"></a><a
name="_DV_X18">Under the Settlement Agreement</a>, <a name="_DV_M34"></a>FPMC agreed to pay <a name="_DV_M35"></a>Washington
Mutual<a name="_DV_C26">, with respect to 11 of the loans,</a><a
name="_DV_M36"></a> the sum, without interest, of $<a name="_DV_C28">780,355,</a><a
name="_DV_M37"></a> consisting of (a) $80,355 paid upon the <a name="_DV_M38"></a>execution
of the Settlement Agreement, (b) monthly installments escalating from $2,500 in
February 2006 to $20,000 in September 2009 and c) an installment of $10,000 in
October 2009 with a final installment of $2,500 in November 2009.<a
name="_DV_C30">&nbsp; &nbsp;Also under the Agreement, FPMC agreed to repurchase two
additional loans that are currently performing, in the event that these loans
become non-performing. The maximum amount payable by FPMC with respect to these
two loans is approximately $195,600, plus the cost of foreclosure proceedings
or other costs and damages incurred by Washington Mutual in connection with
these loans, if any.</a></p>

<p align=left style='margin-left:0pt;text-align:left;text-indent:0pt'><a
name="_DV_M39"></a><b>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Statements and Exhibits</b></p>

<p style='margin-right:0pt;margin-left:72.0pt;text-indent:-36.0pt;line-height:
normal'>(c)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Exhibits</p>



<p style='margin-top:0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:108.0pt;margin-bottom:.0001pt;text-indent:-36.0pt;line-height:
normal'>10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement Agreement between First
Preference Mortgage Corporation and Washington Mutual, <a name="_DV_C34">executed
by FPMC</a><a name="_DV_M42"></a> February <a name="_DV_C36">21</a><a name="_DV_M43"></a>, 2006 and effective as of
February 21, 2006.&nbsp; (Pursuant to Item 601(b)(2) of Regulation S-B, the
schedules to this agreement are omitted but will be provided to the Securities
and Exchange Commission <a name=exp1></a><a name="_DV_M44"></a>upon request.)</p>



<p><a name="_DV_M45"></a>&nbsp;</p>
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<p align=center style='text-align:center'><a
name="_DV_M46"></a>SIGNATURE</p>

<p><a name="_DV_M47"></a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.</p>



<p><a name="_DV_M48"></a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST
FINANCIAL CORPORATION</p>





<p style='margin-left:216.0pt;text-indent:-216.0pt'><a
name="_DV_M49"></a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>/s/
David W. Mann<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Executive Officer</p>

<p><a name="_DV_M51"></a>Date:
February 24, 2006</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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<p><a name="_DV_M52"></a>&nbsp;</p>







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{"company-data": {"conformed-name": "FIRST FINANCIAL CORP /TX/", "cik": "0000036315", "assigned-sic": "6162", "irs-number": "741502313", "state-of-incorporation": "TX", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-05559", "film-number": "06645230"}, "business-address": {"street1": "800 WASHINGTON AVE", "city": "WACO", "state": "TX", "zip": "76701", "phone": "8177572424"}, "mail-address": {"street1": "800 WASHINGTON AVE", "city": "WACO", "state": "TX", "zip": "76701"}}
First Financial Corporation Form 8-K by www.edgar2.com
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
:
February 21, 2006
First
Financial Corporation
(Exact name of registrant as specified in its charter)
Texas
0-5559
74-1502313
(
State
of incorporation
)
(
Commission File Number
)
(
IRS
Employer Identification No.)
800
Washington Ave, Waco, Texas
76701
(
Address of principal executive offices
)
(
Zip Code
)
(254) 757-2424
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligations of the registrant under any of
the following provisions:
[  ]  Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01        Entry into a
Material Definitive Agreement.
On February 21, 2006, First Preference Mortgage Corporation
("FPMC"), a wholly owned subsidiary of First Financial Corporation
entered into a Stipulation of Settlement (the "Settlement
Agreement") with
Washington
Mutual Bank, FA,  ("Washington
Mutual
")
. The
Settlement
Agreement settles claims by Washington Mutual
as to defects in 13 loans that had been sold by FPMC to
Washington Mutual
under
a loan purchase agreement
.
The aggregate amount of these loans, as of the date of
execution of the Settlement Agreement
, was
$1,211,447.
Under the Settlement Agreement
,
FPMC agreed to pay
Washington
Mutual
, with respect to 11 of the loans,
the sum, without interest, of $
780,355,
consisting of (a) $80,355 paid upon the
execution
of the Settlement Agreement, (b) monthly installments escalating from $2,500 in
February 2006 to $20,000 in September 2009 and c) an installment of $10,000 in
October 2009 with a final installment of $2,500 in November 2009.
Also under the Agreement, FPMC agreed to repurchase two
additional loans that are currently performing, in the event that these loans
become non-performing. The maximum amount payable by FPMC with respect to these
two loans is approximately $195,600, plus the cost of foreclosure proceedings
or other costs and damages incurred by Washington Mutual in connection with
these loans, if any.
Item 9.01     Financial
Statements and Exhibits
(c)        Exhibits
10.1     Settlement Agreement between First
Preference Mortgage Corporation and Washington Mutual,
executed
by FPMC
February
21
, 2006 and effective as of
February 21, 2006.  (Pursuant to Item 601(b)(2) of Regulation S-B, the
schedules to this agreement are omitted but will be provided to the Securities
and Exchange Commission
upon request.)
SIGNATURE
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.
FIRST
FINANCIAL CORPORATION
By:
/s/
David W. Mann
Chief
Executive Officer
Date:
February 24, 2006