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<title>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>: August 9, 2005</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>





<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
<div align="center">
	<table border="0" width="740" id="table1" cellspacing="0" cellpadding="0">
		<tr>
			<td width="262">





<p align="center">Texas</p></td>
			<td>
			<p align="center">0-5559</td>
			<td width="256" align="center">74-1502313</td>
		</tr>
		<tr>
			<td width="262">

<p align="center">&nbsp;&nbsp;&nbsp;&nbsp; (<i>State of incorporation</i>)</p>
			</td>
			<td>
			<p align="center">(<i>Commission
File Number</i>)</td>
			<td width="256" align="center">(<i>IRS Employer Identification No.)</i></td>
		</tr>
		<tr>
			<td width="262">&nbsp;</td>
			<td>&nbsp;</td>
			<td width="256" align="center">&nbsp;</td>
		</tr>
		<tr>
			<td colspan="2">



<p align=left style='margin-left:36.0pt;text-indent:0pt'>800 Washington Ave,
Waco, Texas</td>
		<td width="256" align="center">76701</td>
		</tr>
		<tr>
			<td colspan="2">

<p align=left style='margin-left:36.0pt;text-indent:0pt'>(<i>Address of principal executive offices</i>)</td>
		<td width="256" align="center">(<i>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>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 August 9, 2005 (the &quot;Delivery
Date&quot;), First Preference Mortgage Corporation (&quot;FPMC&quot;), a wholly owned
subsidiary of First Financial Corporation (&quot;FFC&quot;), received delivery from
CitiMortgage, Inc. (&quot;CMI&quot;) of a Workout and Forebearance Agreement (the
&quot;Workout Agreement&quot;) with CMI. The Workout Agreement settles claims by CMI
under the loan purchase agreement by which CMI had purchased loans from FPMC.
CMI claimed that, under the loan purchase agreement, FPMC was required to
repurchase from CMI certain loans aggregating $6,618,793 (the &quot;Subject Loans&quot;).
Prior to the Workout Agreement, CMI had collected, by foreclosure or otherwise,
a net of $1,317,774 on a portion of the Subject Loans as to which FPMC's
repurchase obligation was $2,813,436.</p>



<p style='text-indent:36.0pt'>Under the Workout Agreement,
which is effective as of July 20, 2005:</p>



<ol>
	<li>
	<p align=left style='text-align:left;margin-left:0.5in'>FPMC
agreed to pay or to cause the payment of $2,221,859 to CMI for the repurchase
of certain of the Subject Loans aggregating $2,824,929. A third-party purchaser
has agreed to purchase these loans from FPMC for the same price ($2,221,859) to
be paid by FPMC to CMI.<br>
&nbsp;</li>
<li>
<p align=left style='text-align:left;margin-left:0.5in'>FPMC
agreed to pay to CMI the sum, without interest, of $1,920,844 (the &quot;Deferred
Payment Amount&quot;), consisting of (a) $254,544 paid on the Signing Date, (b) two
payments of $50,000 each on June 1, 2006 and December 1, 2006 and (c) monthly
installments escalating from $20,000 in October 2005 to $50,000 in November
2008 and a final installment of $251,300 in December 2008. <br>
&nbsp;</li>
<li>
<p align=left style='text-align:left;margin-left:0.5in'>CMI
will pursue collection of Subject Loans aggregating $2,476,090, on which the
borrowers have previously defaulted (the &quot;Defaulted Loans&quot;). As to any such
loan on which the amount recovered by CMI is less than the amount owed by FPMC
with respect to the repurchase of such loan, the amount of the shortfall will
be added to the Deferred Payment Amount. <br>
&nbsp;</li>
<li>
<p align=left style='text-align:left;margin-left:0.5in'>If FPMC recovers any amounts under its fidelity bond coverage or errors and
omissions insurance coverage with respect to
any of the Defaulted Loans, FPMC will pay to CMI the lesser of 50% of any such
insurance recovery or CMI's loss with respect to the loan.&nbsp; Any such insurance
recoveries paid to CMI will reduce the installments of the Deferred Payment
Amount owed by FPMC, in inverse order of maturity.</li>
</ol>

<p align=left style='margin-left:0pt;text-align:left;text-indent:36.0pt'>CMI
has been one of the principal purchasers of mortgage loans originated by FPMC
and FFC expects that, after the Workout Agreement, FPMC's historical
relationship with CMI will continue. </p>
<p align=left style='margin-left:0pt;text-align:left;text-indent:36.0pt'>&nbsp;</p>
<p align=left style='margin-left:0pt;text-align:left;text-indent:36.0pt'>&nbsp;</p>

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style='page-break-before:always'>










<p align=left style='margin-left:0pt;text-align:left;text-indent:36.0pt'>The
statements included in this report as to our expectations with respect to the
our continuing relationship with CMI and with respect to other future events
are forward-looking statements. These forward-looking statements rely on
assumptions, estimates and predictions that could be inaccurate and that are
subject to risks and uncertainties that could cause actual results to differ
materially from our stated expectations.&nbsp; These risks and uncertainties
include, but are not limited to, the quality and amount of the loans originated
by FPMC and sold to CMI. Other risks and uncertainties are described in our
filings with the SEC, including our Form 10-KSB for the year ended December 31,
2004.&nbsp; </p>

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

<p style='margin-top:0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:72.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</p>
<p style='margin-top:0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:72.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>&nbsp;</p>



<p style='margin-top:0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:108.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>10.1&nbsp;&nbsp;&nbsp; Workout and Forebearance Agreement between First Preference Mortgage
Corporation and CitiMortgage, Inc. delivered August 9, 2005 and effective as of
June 20, 2005.&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 upon request.)</p>
<p style='margin-top:0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:108.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>&nbsp;</p>
<p style='margin-top:0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:108.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>&nbsp;</p>
<p style='margin-top:0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:108.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>&nbsp;</p>





<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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/&nbsp;
David W. Mann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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; David
W. Mann,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Executive Officer</p>

<p>Date: August 12, 2005</p>





<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&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": "051023934"}, "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"}}
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)
: August 9, 2005
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 August 9, 2005 (the "Delivery
Date"), First Preference Mortgage Corporation ("FPMC"), a wholly owned
subsidiary of First Financial Corporation ("FFC"), received delivery from
CitiMortgage, Inc. ("CMI") of a Workout and Forebearance Agreement (the
"Workout Agreement") with CMI. The Workout Agreement settles claims by CMI
under the loan purchase agreement by which CMI had purchased loans from FPMC.
CMI claimed that, under the loan purchase agreement, FPMC was required to
repurchase from CMI certain loans aggregating $6,618,793 (the "Subject Loans").
Prior to the Workout Agreement, CMI had collected, by foreclosure or otherwise,
a net of $1,317,774 on a portion of the Subject Loans as to which FPMC's
repurchase obligation was $2,813,436.
Under the Workout Agreement,
which is effective as of July 20, 2005:
FPMC
agreed to pay or to cause the payment of $2,221,859 to CMI for the repurchase
of certain of the Subject Loans aggregating $2,824,929. A third-party purchaser
has agreed to purchase these loans from FPMC for the same price ($2,221,859) to
be paid by FPMC to CMI.
FPMC
agreed to pay to CMI the sum, without interest, of $1,920,844 (the "Deferred
Payment Amount"), consisting of (a) $254,544 paid on the Signing Date, (b) two
payments of $50,000 each on June 1, 2006 and December 1, 2006 and (c) monthly
installments escalating from $20,000 in October 2005 to $50,000 in November
2008 and a final installment of $251,300 in December 2008.
CMI
will pursue collection of Subject Loans aggregating $2,476,090, on which the
borrowers have previously defaulted (the "Defaulted Loans"). As to any such
loan on which the amount recovered by CMI is less than the amount owed by FPMC
with respect to the repurchase of such loan, the amount of the shortfall will
be added to the Deferred Payment Amount.
If FPMC recovers any amounts under its fidelity bond coverage or errors and
omissions insurance coverage with respect to
any of the Defaulted Loans, FPMC will pay to CMI the lesser of 50% of any such
insurance recovery or CMI's loss with respect to the loan.  Any such insurance
recoveries paid to CMI will reduce the installments of the Deferred Payment
Amount owed by FPMC, in inverse order of maturity.
CMI
has been one of the principal purchasers of mortgage loans originated by FPMC
and FFC expects that, after the Workout Agreement, FPMC's historical
relationship with CMI will continue.
The
statements included in this report as to our expectations with respect to the
our continuing relationship with CMI and with respect to other future events
are forward-looking statements. These forward-looking statements rely on
assumptions, estimates and predictions that could be inaccurate and that are
subject to risks and uncertainties that could cause actual results to differ
materially from our stated expectations.  These risks and uncertainties
include, but are not limited to, the quality and amount of the loans originated
by FPMC and sold to CMI. Other risks and uncertainties are described in our
filings with the SEC, including our Form 10-KSB for the year ended December 31,
2004.
Item
9.01        Financial
Statements
and Exhibits
(c)        Exhibits
10.1    Workout and Forebearance Agreement between First Preference Mortgage
Corporation and CitiMortgage, Inc. delivered August 9, 2005 and effective as of
June 20, 2005.  (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                     .
David
W. Mann,
Chief
Executive Officer
Date: August 12, 2005