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



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



<p align=center style='text-align:center'>Date of Report <i>(Date
of earliest event reported)</i> December 1, 2006</p>
<p align=center style='text-align:center'>&nbsp;</p>



<p align=center style='text-align:center'><b><font size="4">First Financial Corporation<br>
</font></b><i>(Exact name of
registrant as specified in its charter)</i></p>
<p align=center style='text-align:center'><i>&nbsp; </i></p>
<div align="left">
  <table border="0" style="border-collapse: collapse" width="100%" id="table1">
    <tr>
      <td width="285">





<p align=center style='text-align:center;text-indent:.5in'>Texas</p></td>
      <td align="center">0-5559 </td>
      <td align="center" width="354">74-1502313</td>
    </tr>
    <tr>
      <td width="285">

<p align=center style='margin-left:2.0in;text-align:center;
text-indent:-2.0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>(State of incorporation)</i></p>
      </td>
      <td align="center"> <i>(Commission File Number)</i></td>
      <td align="center" width="354"> <i>(IRS Employer Identification No.)</i></td>
    </tr>
  </table>
</div>





<p>&nbsp; </p>
<div align="center">
  <table border="0" style="border-collapse: collapse" width="90%" id="table2">
    <tr>
      <td width="500">
      <p align="center">800 Washington Avenue, Waco, Texas</p></td>
      <td align="center">76701</td>
    </tr>
    <tr>
      <td width="500">

<p align=center style='text-align:center'><i>(Address
of principal executive offices)</i></p></td>
      <td align="center"> <i>&nbsp;(Zip Code)</i></td>
    </tr>
  </table>
</div>



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



<p align=center style='text-align:center'>N/A<br>
<i>(Former name or
former address, if changed since last report)</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>
<hr>
<p>&nbsp;</p>





<br clear=all
style='page-break-before:always'>




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



<p style='text-indent:.5in'>Information required by this Item
1.01 is provided under Item 2.01 of this Form&nbsp;8&#8209;K.</p>



<p><b>Item 2.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Completion of Acquisition or Disposition
of Assets. </b></p>



<p style='text-indent:.5in'>On December 1, 2006 Citizens
Mortgage Corp. (&quot;CMC&quot;) and First Preference Mortgage Corp. (&quot;FPMC&quot;), a wholly
owned subsidiary of the registrant, First Financial Corporation (&quot;FFC&quot;),
executed an agreement entitled Memorandum of Asset Purchase (the &quot;Agreement&quot;)
under which FPMC sold to CMC substantially all of its furniture, fixtures and
equipment and its retail and wholesale loan production operations and going
concern value for a purchase price of $333,873, of which $78,873 was paid in
cash on the date of execution and the $255,000 balance was paid in the form of
CMS's promissory note. The promissory note is unsecured, bears interest at
0.75% below the prime rate published in the Wall Street Journal (initially,
7.50%), and is repayable in 12 quarterly installments of principal and accrued
interest starting March 15, 2007. The effective date provided in the Agreement
was May 1, 2006. Under the Agreement CMC assumed no liabilities, obligations or
commitments of FPMC, other than certain equipment lease agreements. In
connection with the discontinuance by FPMC of its loan production operations,
CMC employed certain of FPMC's former employees and took over the processing of
loan applications that had been received by FPMC.</p>



<p style='text-indent:.5in'>CMC is a wholly owned subsidiary of
Citizens State Bank of Woodville, Texas, the president and chief executive
officer of which is David W. Mann and the parent company of which is
majority-owned by Mr. Mann and his affiliates. Mr. Mann is also the chief
executive officer and a director of both FPMC and FFC. Mr. Mann and his affiliates
have controlling beneficial ownership of FFC and the parent company of CMC.</p>



<p style='text-indent:.5in'>The purchase price and terms
provided in the Agreement were negotiated on behalf of FPMC by the independent
directors of FFC and by legal counsel selected by them. The purchase price was
based on an evaluation provided by an independent expert.</p>



<p><b>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</b></p>



<p style='text-indent:.5in'>(b) Pro forma financial
information.</p>



<p style='text-indent:.5in'>The pro forma financial information
required to be filed by Article 11 of Regulation S-X with respect to the
disposition of the assets of FPMC will be filed on or before February 16, 2006.</p>













<hr>
<p>&nbsp;</p>





<br clear=all
style='page-break-before:always'>













<p align=center style='text-align:center'>SIGNATURE</p>



<p>&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>&nbsp;&nbsp; </p>



<p>&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>&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:<u>&nbsp;&nbsp;&nbsp;/s/&nbsp;
David W. Mann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</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;&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; David
W. Mann<br>
&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President
and Chief Executive Officer </p>
<p>&nbsp; </p>

<p>Date: December 7, 2006</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": "061263018"}, "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"}}
Prepared by E-Services - 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)
December 1, 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 Avenue, Waco, Texas
76701
(Address
of principal executive offices)
(Zip Code)
(254) 757-2424
(Registrant's
telephone number, including area code)
N/A
(Former name or
former address, if changed since last report)
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.
Information required by this Item
1.01 is provided under Item 2.01 of this Form 8‑K.
Item 2.01        Completion of Acquisition or Disposition
of Assets.
On December 1, 2006 Citizens
Mortgage Corp. ("CMC") and First Preference Mortgage Corp. ("FPMC"), a wholly
owned subsidiary of the registrant, First Financial Corporation ("FFC"),
executed an agreement entitled Memorandum of Asset Purchase (the "Agreement")
under which FPMC sold to CMC substantially all of its furniture, fixtures and
equipment and its retail and wholesale loan production operations and going
concern value for a purchase price of $333,873, of which $78,873 was paid in
cash on the date of execution and the $255,000 balance was paid in the form of
CMS's promissory note. The promissory note is unsecured, bears interest at
0.75% below the prime rate published in the Wall Street Journal (initially,
7.50%), and is repayable in 12 quarterly installments of principal and accrued
interest starting March 15, 2007. The effective date provided in the Agreement
was May 1, 2006. Under the Agreement CMC assumed no liabilities, obligations or
commitments of FPMC, other than certain equipment lease agreements. In
connection with the discontinuance by FPMC of its loan production operations,
CMC employed certain of FPMC's former employees and took over the processing of
loan applications that had been received by FPMC.
CMC is a wholly owned subsidiary of
Citizens State Bank of Woodville, Texas, the president and chief executive
officer of which is David W. Mann and the parent company of which is
majority-owned by Mr. Mann and his affiliates. Mr. Mann is also the chief
executive officer and a director of both FPMC and FFC. Mr. Mann and his affiliates
have controlling beneficial ownership of FFC and the parent company of CMC.
The purchase price and terms
provided in the Agreement were negotiated on behalf of FPMC by the independent
directors of FFC and by legal counsel selected by them. The purchase price was
based on an evaluation provided by an independent expert.
Item 9.01        Financial Statements and Exhibits.
(b) Pro forma financial
information.
The pro forma financial information
required to be filed by Article 11 of Regulation S-X with respect to the
disposition of the assets of FPMC will be filed on or before February 16, 2006.
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
David
W. Mann
President
and Chief Executive Officer
Date: December 7, 2006