<PAGE>   1

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.   20549

                                   FORM 10-Q


         (MARK ONE)
[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

         For the quarterly period ended March 28, 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: 33-22183
                        -------------------------------------------------------

                           OLDE FINANCIAL CORPORATION
                           --------------------------
             (Exact name of registrant as specified in its charter)


Michigan                                                             38-2722519
-------------------------------------------------------------------------------
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)             

751 Griswold Street Detroit, Michigan                                     48226
-------------------------------------------------------------------------------
(Address of principal executive offices)                             (Zip Code)

(313) 961-6666
-------------------------------------------------------------------------------
(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:


      Common stock, $0.10 par value                    30,997,124 
      -----------------------------          ------------------------------
                  Class                      Outstanding as of May 12, 1997





                                       1

<PAGE>   2


                          OLDE Financial Corporation
                                  Form 10-Q
                     For the Period Ended March 28, 1997


                                                                            Page
Part I.          Financial Information

         Item 1. Financial Statements

                 Consolidated Statements of Financial
                 Condition - March 28, 1997 (Unaudited)
                 and December 31, 1996                                        3

                 Consolidated Statements of Operations
                 Three Months Ended March 28, 1997
                 and March 29, 1996 (Unaudited)                               5

                 Consolidated Statements of Cash Flows
                 Three Months Ended March 28, 1997 and
                 March 29, 1996 (Unaudited)                                   6

                 Notes to Consolidated Financial Statements (Unaudited)       7

         Item 2. Management's Discussion and Analysis of
                 Financial Condition and Results of Operations                13


Part II.         Other Information
                                                                              
         Item 6. Exhibits and Reports on Form 8-K                             18


                 Signature                                                    19



"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:  Some of the statements under "Business" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and other statements
which are not historical facts are forward-looking statements that involve
risks and uncertainties.  Such risks and uncertainties include, but are not
limited to, the effect of national and international economic and political
conditions on the securities industry generally, the impact of competitive
products and services on the Company's business specifically, and the Company's
ability to introduce new products successfully.  Other factors include changes
in securities rules and regulations affecting the Company's business, revisions
in regulatory bodies' interpretations of these rules and regulations, Federal
Reserve Board policies and actions with regard to interest rates, news media
reports on securities valuations, changes in the taxation of securities
transactions, alterations in customer investment product preferences, and other
risks.  Business risk and uncertainty being inherent in these components of the
Company's business environment, there can be no assurance that projections in
such forward-looking statements will be realized.






                                       2

<PAGE>   3



Part I. - Financial Information

Item 1. - Financial Statements


                           OLDE Financial Corporation
                 Consolidated Statements of Financial Condition
                      March 28, 1997 and December 31, 1996

<TABLE>
<CAPTION>
                                                                                        March 28,    December 31,
                                                                                        1997             1996
                                                                                     (Unaudited)
                                                                                  --------------------------------
<S>                                                                             <C>                  <C>           
Assets:
Cash                                                                              $   22,898,626     $   36,318,892
Short term investments - at cost which approximates
     market                                                                           21,505,766         22,811,775
U.S. Government and U.S. Government Agencies securities
     purchased under agreements to resell - at resale amount                         117,674,000        179,974,000

Special reserve account for benefit of customers:
     U.S. Government securities purchased under
          agreements to resell - at resale amount                                     85,553,000        119,881,000
     Cash                                                                                  6,380              6,201   
                                                                                  --------------     --------------   
                                                                                      85,559,380        119,887,201

Deposits with clearing organizations:
     Cash                                                                              2,004,965          2,004,965
     U.S. Government and other securities - at market                                  3,778,634          3,689,434
                                                                                  --------------     --------------
                                                                                       5,783,599          5,694,399


Receivables:
     Customers                                                                     1,115,981,247      1,153,541,049
     Brokers, dealers and clearing organizations                                      22,487,451         24,270,894
     Other, including $507,796 and $323,168 from,
          affiliates at March 28, 1997 and December 31, 1996,
          respectively                                                                10,937,672          7,030,219
     Less reserve for doubtful accounts                                               (1,737,614)        (1,700,182)
                                                                                  ---------------    ---------------
                                                                                   1,147,668,756      1,183,141,980


Securities owned - at market                                                          43,915,204         37,910,060
Property and equipment - at cost less accumulated
     depreciation and amortization of $33,306,784 and $30,832,793
     at March 28, 1997 and December 31, 1996, respectively                            54,054,513         55,453,237
Exchange memberships - at cost                                                           808,778            808,778
Other                                                                                  2,174,498          8,227,953
                                                                                  --------------     --------------
                                                                                  $1,502,043,120     $1,650,228,275
                                                                                  ==============     ==============
</TABLE>

See accompanying notes





                                       3


<PAGE>   4
                          OLDE Financial Corporation
                Consolidated Statements of Financial Condition
                     March 28, 1997 and December 31, 1996

<TABLE>
<CAPTION>
                                                                                      March 28,     December 31,
                                                                                      1997               1996
                                                                                      (Unaudited)
                                                                                  ---------------   ---------------
<S>                                                                               <C>               <C>
Liabilities and Stockholders' Equity:
Payable to customers                                                              $  964,862,745     $1,087,561,270
Payable to brokers and dealers                                                       182,734,685        179,341,557
Securities sold, not yet purchased - at market                                        10,162,378          6,989,535
Accrued income taxes                                                                   5,587,499          3,552,574
Real estate mortgages                                                                 13,277,301         13,410,599
Capital lease obligations                                                              3,692,551          4,226,682
Accounts payable, accrued expenses and other
     including $1,207,414 and $1,178,963 to affiliates
     at March 28, 1997 and December 31, 1996,
     respectively                                                                    29,022,944          26,281,213
                                                                                  --------------     --------------
                                                                                   1,209,340,103      1,321,363,430


Subordinated debt:
     12.5% Senior subordinated debentures due
          August, 1998                                                                 9,464,000         10,000,000
     9.6% Senior subordinated debentures due
          May, 2002                                                                   17,508,000         20,000,000
                                                                                  --------------     --------------
                                                                                      26,972,000         30,000,000

Commitments and contingencies (Note 6)


Stockholders' equity:
     Common stock ($0.10 par value; 40,000,000 shares
          authorized; 30,997,124 and 36,810,000 shares
          issued and outstanding at March 28, 1997
          and December 31, 1996, respectively)                                         3,099,712          3,681,000
     Retained earnings                                                               262,631,305        295,183,845
                                                                                  --------------     --------------
Total stockholders' equity                                                           265,731,017        298,864,845
                                                                                  --------------     --------------
                                                                                  $1,502,043,120     $1,650,228,275
                                                                                  ==============     ==============
</TABLE>




See accompanying notes.





                                       4
<PAGE>   5

                           OLDE Financial Corporation
                     Consolidated Statements of Operations
                              For the Three Months
                       March 28, 1997 and March 29, 1996
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                   Three Months Ended
                                                 March 28,       March 29,
                                                   1997             1996
                                                 ------          -------
<S>                                              <C>              <C>
Revenues:
     Commissions                                 $38,858,795      $36,688,337
     Principal transactions                       21,847,013       32,209,709
     Interest                                     24,985,294       25,682,004
     Other                                         3,407,153        3,264,773
                                                 -----------      -----------
Total revenues                                    89,098,255       97,844,823


Expenses:
     Employee compensation and benefits           31,278,187       31,284,012
     Commissions, floor brokerage and fees         2,663,031        2,571,133
     Communications                                2,315,725        2,566,755
     Advertising and promotional                   4,156,275        3,939,843
     General and administrative                    7,327,617        6,531,775
     Interest                                     10,881,090       11,728,759
     Occupancy                                     5,461,459        6,070,485
     Data processing and supplies                  2,498,759        2,512,833
                                                 -----------      -----------
Total expenses                                    66,582,143       67,205,595
                                                 -----------      -----------
Income before income taxes                        22,516,112       30,639,228
Income tax provision                               8,275,000       11,556,000
                                                 -----------      -----------
Net income                                       $14,241,112      $19,083,228
                                                 ===========      ===========


Net income per common share                      $      0.42      $      0.52
                                                 ===========      ===========



Weighted average shares
     outstanding                                  33,290,264       36,750,730
                                                 ===========      ===========
</TABLE>




See accompanying notes





                                       5
<PAGE>   6

                           OLDE Financial Corporation
                     Consolidated Statements of Cash Flows
                           For the Three Months Ended
                       March 28, 1997 and March 29, 1996
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                                                         Three Months Ended
                                                                                     March 28,          March 29,
                                                                                       1997                 1996
                                                                                     ---------          ---------   
<S>                                                                               <C>                  <C>
Cash flows from operating activities:
Net income                                                                         $  14,241,112      $  19,083,228
Adjustments to reconcile net income to net cash
     provided by  (used in) operating activities:
Depreciation and amortization                                                          2,473,991          2,415,968
(Increase) decrease in:
     Special reserve account for benefit of customers                                 34,327,821        (10,973,722)
     Deposits with clearing organizations                                                (89,200)             2,998
     Receivables from customer                                                        37,559,802          9,445,082
     Receivables from brokers, dealers, and clearing organizations                     1,783,443          7,952,570
     Receivables from others                                                          (3,870,021)         2,680,318
     Securities purchased under agreements to resell                                  62,300,000        102,066,000
     Securities owned                                                                 (6,005,144)         3,214,440
     Other assets, net                                                                 6,053,455          3,879,138
Increase (decrease) in:
     Payables to customers                                                          (122,698,525)        48,106,661
     Payables to brokers and dealers                                                   3,393,128       (208,628,798)
     Securities sold, not yet purchased                                                3,172,843          3,171,927
     Accrued income taxes                                                              2,034,925          6,787,882
     Accounts payable, accrued expenses and other liabilities                          2,741,731         (2,373,318)
                                                                                   -------------      --------------
Net cash provided by (used in) operating activities                                   37,419,361        (13,169,626)

Cash flows used in investing activities:
Capital expenditures                                                                    (794,782)        (1,712,976)

Cash flows provided by (used in) financing activities:
Repurchase of bonds 9.6% interest                                                     (2,492,000)             -
Repurchase of bonds 12.5% interest                                                      (536,000)             -
Issuance of common stock                                                                   -                415,350
Redemption of common stock                                                           (47,374,940)              -
Principal payments on real estate mortgages                                             (735,355)          (735,355)
Real estate mortgages obtained                                                           602,057               -
Principal payments on capital lease obligations                                         (814,616)          (906,616)
                                                                                   --------------     --------------
Net cash used in financing activities                                                (51,350,854)        (1,226,621)
                                                                                   --------------     --------------

Net decrease in cash                                                                 (14,726,275)       (16,109,223)
Cash and cash equivalents at the beginning of period                                  59,130,667         52,934,492
                                                                                   -------------      -------------
Cash and cash equivalents at end of period                                         $  44,404,392      $  36,825,269
                                                                                   =============      =============
</TABLE>



See accompanying notes





                                       6

<PAGE>   7


                           OLDE Financial Corporation
                   Notes to Consolidated Financial Statements
                                 March 28,1997
                                  (Unaudited)

1.  Business

The accompanying financial statements present the consolidated financial
statements of the Company and its subsidiaries, OLDE Discount Corporation
("OLDE Discount"), American Brokerage Services, Inc. ("ABS"), OLDE Asset
Management, Inc. ("OAM"), OLDE Realty Corporation ("ORC"), OLDE Property
Corporation ("OPC"), OLDE Equipment Corporation ("OEC"), Realty Acquisitions,
Inc. ("RAI"), and Smart Travel, Inc.  ("STI").  Material intercompany balances
have been eliminated for all periods presented.

The Company is a financial services company.  OLDE Discount engages in a
discount securities brokerage business primarily for retail customers
throughout the United States.  OLDE Discount also engages in market making and
specialist activities in common stocks and is a dealer in corporate and
municipal bonds and U. S. Government securities.

Other products and services provided to customers include: stock research and
recommendations; money market funds with sweep provisions for settlement of
customer transactions; fixed-income products; mutual funds; margin accounts;
accounts offering checking privileges; option accounts; and individual
retirement accounts with no annual fee.

OAM provides portfolio management and administrative services to the OLDE
Custodian Fund, a money market fund series.  ORC, OPC, and RAI are engaged in
the acquisition, ownership and operation of commercial real estate, leased
primarily to OLDE Discount.  OEC leases computer hardware and software to OLDE
Discount.  STI provides travel management and purchasing services primarily to
OLDE Discount.  ABS is currently inactive.



2.  Significant accounting policies

In the opinion of management, the accompanying unaudited consolidated financial
statements contain all adjustments, which consist only of normal recurring
adjustments, necessary to present fairly the financial position of the Company
at March 28, 1997 and December 31, 1996, and the results of its operations and
its cash flows for the periods ended March 28, 1997 and March 29, 1996.  The
Company's accounting policies have been consistently followed.  These unaudited
consolidated financial statements should be read in conjunction with the
Company's annual report on Form 10-K, and periodic reports on other Forms 10-Q.
Results for interim periods may not be indicative of results for the entire
year.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes.  Actual results could differ from those estimates.

OLDE Discount is a registered securities broker-dealer and accounts for
securities transactions  (and related commission revenue and expense) on the
trade date basis.  The risk of loss on transactions as of trade date is
equivalent to the risk of loss on settlement date and relates to customers' or
other brokers' inability to meet the terms of contracts.  Credit risk is
reduced by obtaining and maintaining adequate collateral until the contract is
settled.





                                       7

<PAGE>   8


                           OLDE Financial Corporation
             Notes to Consolidated Financial Statements (Continued)
                                  (Unaudited)

2.  Significant accounting policies (continued)

The Company is a party to financial instruments with off balance sheet risk in
its normal course of business.  The Company is required, in the event of the
non-delivery of customers' securities owed the Company by other broker-dealers,
or by its customers, to purchase identical securities in the open market.  Such
purchases could result in losses not reflected in the accompanying financial
statements.

Securities owned and securities sold, not yet purchased, are carried at market
value.  Unrealized gains and losses are reflected in operations.  Sales of
securities not yet purchased represent an obligation of the Company to deliver
specified securities at a predetermined date and price.  The Company will be
obligated to acquire the required securities at prevailing market prices in the
future to satisfy this obligation.

Securities purchased under agreements to resell are treated as financing
transactions and are carried at the amounts at which the securities will be
subsequently resold as specified in the respective agreements.  Collateral
relating to investments in repurchase agreements is held by independent
custodian banks.  The securities are valued daily and collateral added whenever
necessary to bring the market value of the underlying collateral equal to or
greater than the repurchase price specified in the contracts.

Depreciation and amortization are provided using both straight-line and
accelerated methods over estimated useful lives of three to thirty nine years.
Leasehold improvements are amortized using both straight-line and accelerated
methods.

The Company considers all non-segregated highly liquid investments (short-term
investments) with a maturity of three months or less when purchased to be cash
equivalents.

The Company does not provide post-employment retirement benefits for any of its
officers, directors or employees.


3.  Special reserve account for benefit of customers

U.S. Government securities purchased under agreements to resell and cash have
been segregated in a special reserve account for the exclusive benefit of
customers pursuant to federal regulations under Rule 15c3-3 of the Securities
Exchange Act of 1934.





                                       8

<PAGE>   9


                          OLDE Financial Corporation
            Notes to Consolidated Financial Statements (Continued)
                                 (Unaudited)


4.  Receivables

Receivables from customers include amounts due on margin and cash transactions.
The receivables are collateralized by customers' securities held, which are not
reflected in the financial statements.

Receivables from brokers generally are collected within thirty days and are
collateralized by securities in physical possession, on deposit, or receivable
from customers or other brokers.  The Company does business with brokers that
for the most part are members of the major securities exchanges.

The Company monitors the credit standing of broker-dealers and customers with
whom it conducts business.  In addition, the Company monitors the market value
of collateral held and the market value of securities receivable from others.
The Company obtains additional collateral if insufficient protection against
loss exists.


5.  Securities lending

At March 28, 1997, funds obtained under securities lending agreements, which is
included with payables to broker dealers, amounted to $181.5 million.  At
December 31, 1996 the securities lending amount was $177.4 million.  Securities
loaned are securities held by customers on margin.  When loaning securities
OLDE Discount receives cash collateral approximately equal to the value of the
securities loaned.  The amount of cash collateral is adjusted daily for market
fluctuations in the value of the securities loaned.  Interest rates paid on the
cash collateral fluctuate with short-term interest rates.


6.  Bank lines of credit, debt, commitments and contingencies

At March 28, 1997, bank lines of credit available to OLDE Discount amounted to
$180 million.  A line of credit in the amount of $80 million may be withdrawn
at the discretion of the bank.  A $100 million committed line of credit expires
in August 1997 and, subject to the terms of the agreement, may be extended for
one year at the bank's discretion.  Separate commitments for letters of credit
in the amount of $45 million were also available.  Short-term bank loans
outstanding under the lines of credit are payable either on demand or upon
expiration of the line of credit and are collateralized by marketable
securities carried for the accounts of margin customers.  Loans outstanding
bear interest at broker loan rates.

There were no borrowings under these lines of credit at March 28, 1997 or
December 31, 1996.  During 1996 and 1997, there were no compensating balance
requirements related to these lines of credit.

As of March 28, 1997, OLDE Discount had provided a clearing corporation with
letters of credit totaling $28.4 million which satisfied margin deposit
requirements of $25.6 million.  These letters of credit are secured by
customers' margin securities.





                                       9


<PAGE>   10


                           OLDE Financial Corporation
             Notes to Consolidated Financial Statements (Continued)
                                  (Unaudited)

6.  Bank lines of credit, debt, commitments and contingencies (continued)

OLDE Discount leases office facilities over varying periods extending to 2002.
The Company's approximate minimum annual rental commitments under
noncancellable operating leases are as follows:

<TABLE>
<S>                                                   <C>
           1997                                          $ 3,523,000
           1998                                            3,833,000
           1999                                            2,822,000
           2000                                            1,735,000
           2001                                              868,000
           Thereafter                                        804,000
                                                         -----------
                                                         $13,585,000
                                                         ===========
</TABLE>

Certain of the office leases contain renewal options ranging from one to five
years.  The office leases generally provide for rent escalation resulting from
increased real estate assessments for real estate taxes and other charges.
Rental expense for office facilities under noncancellable operating leases was
$1,728,000 and $1,898,000, respectively for the three month periods ended March
28, 1997 and March 29, 1996.


OLDE Discount is a defendant and respondent in a number of civil actions,
arbitrations, and class actions arising out of its business as a broker-dealer,
including a consolidated certified class action in Federal court which alleges
that 33 securities dealers conspired to fix and maintain artificial bid-ask
spreads on certain securities traded in the National Association of Securities
Dealers Automated Quotation System ("Nasdaq") over-the-counter market, and
other purported class actions.  The Company believes it has meritorious
defenses against these claims and intends to assert them vigorously.  It is
management's opinion that the disposition of these claims will not have a
material adverse effect on the financial condition of the Company.

OLDE Discount is the subject of an investigation by the Securities and Exchange
Commission ("SEC").  The investigation has focused on certain sales practices
of the broker-dealer.  OLDE Discount has cooperated fully with the SEC and does
not believe that the broker-dealer has engaged in improper activity.  However,
at this time this investigation has not been concluded.  The SEC may seek to
impose a fine and/or other remedial sanctions on OLDE Discount and/or its
employees.





                                       10

<PAGE>   11


                           OLDE Financial Corporation
             Notes to Consolidated Financial Statements (Continued)
                                  (Unaudited)

7. Net capital requirements

OLDE Discount is required to maintain minimum net capital as defined under Rule
15c3-1 of the Securities Exchange Act of 1934 and has elected to comply with
the alternative net capital requirement, which requires a broker-dealer to
maintain minimum net capital equal to the greater of $250,000 or 2% of the
combined aggregate debit balances arising from customer transactions, as
defined.  The net capital rule also provides that equity capital may not be
withdrawn or cash dividends paid if resulting net capital would be less than
the greater of 5% of combined aggregate debit items or $250,000.  At March 28,
1997, OLDE Discount's net capital of $241.5 million, which was 21% of
aggregate debit items, exceeded by $218.4 million its minimum required net
capital of $23 million.

In February 1997, the Board of Directors of OLDE Discount Corporation approved
the payment of cash dividends to the Company in the amount of $45,124,940 which
were paid in the first quarter of 1997.  The Company utilized the funds
obtained from the dividends to redeem shares of its capital stock.


8. Income taxes

The difference between the Company's effective tax rate and the statutory tax
rate is attributable primarily to the effect of state and local taxes.

The Company paid approximately $188,000 and $900,000 in income taxes for the
three month periods ending March 28, 1997 and March 29, 1996, respectively.


9. Related party transactions

Directors and officers of the Company and their associates maintain cash and
margin accounts with OLDE Discount and execute securities transactions through
OLDE Discount in the ordinary course of business.

OLDE Discount purchases significant advertising and promotional material from
Financial Marketing Services, Inc. ("FMS"), a Michigan corporation wholly-owned
by the majority shareholder of the Company, and North American Printing Company
("North American") formerly Sumner Press, Ltd., a Canadian company controlled
by FMS.  North American supplies FMS with substantially all of OLDE Discount's
printed advertising materials.  OLDE Discount has agreed to purchase
substantially all of its printed materials from FMS.  Minimum annual
advertising purchases under this agreement will be $2.4 million through 1997.
In total, the Company's advertising purchases from FMS amounted to
approximately $2.9 million and $2.7 million for the three months ending March
28, 1997 and March 29, 1996, respectively.  Other subsidiaries of FMS charged
the Company approximately $275,000 and $254,000 primarily for mailing and
general services for the same periods, respectively.

Cash disbursements (including deposits made for future deliveries) for office
furnishings, office renovation, remodeling materials and other supplies from
Canadian Consumer League, Inc., a company owned by the Company's majority
shareholder, amounted to approximately $75,000 and $404,000, respectively for
the three month periods ended March 28, 1997 and March 29, 1996.

Future rental commitments (see Note 6) include amounts payable to the Company's
majority stockholder under various operating leases covering the Company's and
OLDE Discount's corporate headquarters and other facilities.  The leases expire
in 2000, and provide for monthly rental payments of about $67,300.  OLDE
Discount pays utilities, real estate taxes and other occupancy expenses under
these leases.





                                       11

<PAGE>   12


                           OLDE Financial Corporation
             Notes to Consolidated Financial Statements (Continued)
                                  (Unaudited)

9. Related party transactions (continued)

At March 28, 1997 and December 31, 1996, the Company held investments of $21.5
million and $22.8 million, respectively, in shares of money market mutual funds
sponsored and managed by subsidiaries of the Company.


10. Estimated fair values of financial instruments

Generally accepted accounting principles currently require disclosure of
estimated fair values of financial instruments.  The Company uses present value
techniques to determine the estimated values of its financial instruments where
quoted market values are not available.  These techniques require judgment, and
the estimates may be significantly affected by the assumptions made.  A portion
of the Company's financial instruments are securities, traded in nationally
recognized financial markets.  These instruments are carried in the Company's
financial statements at quoted market value or the market value for comparable
securities which represents estimated fair value.  Changes in market values of
these instruments are reflected in current operating results.

A substantial portion of the Company's other financial instruments, consisting
primarily of customer margin loans and customer credit balances, earn or pay
rates of interest that change in accordance with general changes in short-term
interest rates.  Such instruments are carried in the financial statements at
the amount receivable or payable on demand, which is considered to be the
estimated fair value.  Outstanding subordinated debentures of the Company pay
rates of interest fixed at the time of their issuance.  The estimated value of
these debentures fluctuates inversely to changes in interest rates.  The excess
of estimated market value of the debentures compared to their recorded cost
based on interest rates in effect at March 28, 1997 and December 31, 1996, is
not considered material.

The above disclosures do not extend to estimated fair value amounts for items
not defined as financial instruments by FASB No. 107 "Disclosures About Fair
Value of Financial Instruments", for example customer relationships, which
possess significant value.


11. Non cash financing activities

The Company incurred liabilities for capital lease obligations in the amount of
approximately $280,000 for the three month period ending March 28, 1997.  No
new capital lease obligations were incurred for the three month period ending
March 29, 1996.  These transactions affected the Company's recognized
liabilities but were not characterized by the receipt or payment of cash.





                                       12

<PAGE>   13


Item 2. - Management's Discussion and Analysis of Financial Condition and
Results of Operations

                           OLDE Financial Corporation
  Management's Discussion and Analysis of Financial Condition and Results of
                                  Operations

                                    General

The following discussion of the Company's financial condition and results of
operations for the periods indicated, should be read in conjunction with the
Financial Statements and related notes thereto.  Unless otherwise indicated,
all references to the term "Company" refers to OLDE Financial Corporation and
its consolidated subsidiaries.

The business of the Company, like that of other firms in the securities
business, is directly affected by general fluctuations in transaction volumes
and price levels in U.S. securities markets.  These are affected by a multitude
of national and international economic and political factors and changing
legislation and regulations, that are unpredictable.  Accordingly, results for
any interim period may not necessarily be indicative of results for an entire
fiscal year.

The securities industry is governed by extensive regulation under both Federal
and state laws, including regulation delegated to self-regulatory
organizations.  The primary stated purpose of the regulations is the protection
of investors and the securities markets.  New legislation, changes in rules by
the SEC and self-regulatory organizations or changes in the interpretation or
enforcement of current regulations may directly affect the methods of operation
and profitability of securities broker-dealers.

As a result of recent regulatory and legislative proposals, the manner in which
the securities brokerage firms conduct business may change.  Current practices
may change in response to new rules, advances in technology or increased
disclosure requirements.  If implemented, new or modified market systems would
have significant impact on the manner in which all brokerage firms, including
OLDE Discount, conduct business and could have a corresponding negative impact
on revenues.  The Company anticipates that it will adapt the conduct of its
business to any new market environment and continue to promote brokerage
services providing benefit and value to its customers.

                              Financial Condition

From December 31, 1996, total assets of the Company decreased by $148.2 million
to $1.5 billion at March 28, 1997.  Cash decreased by $14.7 million and firm
investments in repurchase agreements decreased by $62.3 million.  Funds
invested in the Special Reserve Account for the exclusive benefit of customers
decreased $34.3 million.  Net receivables, consisting primarily of secured
customer margin loans, decreased by $35.5 million.

Total liabilities decreased by $115 million from December 31, 1996 to $1.2
billion at March 28, 1997.  There was a $122.7 million decrease in payables to
customers as customer credit balances decreased.  There was a $3.4 million
increase in payables to broker-dealers and clearing organizations, primarily a
result of increased securities lending balances.  Accrued income taxes
increased by $2 million.

Shareholders' equity decreased by $33 million during the three month period to
$265.7 million as a result of stock redemptions.  In February 1997, the Board
of Directors of OLDE Discount approved the payment of cash dividends to the
Company in the amount of $45,124,940 and the Board of Directors of OLDE Asset
Management approved the payment of cash dividends to the Company in the amount
of $2,250,000.  The dividends were paid in the first quarter of 1997.  The
Company utilized the funds obtained from the dividends to redeem 5,812,876
shares of its capital stock at $8.15 per share, for total consideration of
$47,374,940.  This reduction in shareholders' equity was offset in part by the
addition of $14.2 million in earnings during the quarter.





                                       13

<PAGE>   14



                           OLDE Financial Corporation
  Management's Discussion and Analysis of Financial Condition and Results of
                            Operations (Continued)

        Results of Operations for the Three Months Ended March 28, 1997
               Compared to the Three Months Ended March 29, 1996

Total revenues for the three months ended March 28, 1997 decreased by $8.7
million or 8.9% compared to the three months ended March 29, 1996.  The
decrease occurred in revenues from principal transactions.

Total expenses decreased by $600,000 or 1%, primarily due to decreases in
communication, interest, and occupancy expenses.

Pretax income decreased by $8.1 million or 26.5% to $22.5 million.  Net income
decreased by $4.8 million or 25.4% to $14.2 million.

Commission revenue increased by $2.2 million, or 5.9%, primarily due to an
increase in mutual fund trading activity.

Interest revenue decreased $700,000 or 2.7% from the prior year.  The
determinants of the Company's interest revenue are the average balances of
invested assets and the rates of interest earned.  Interest rates on all of
these assets fluctuate with market conditions.  The primary components of
interest revenue are identified in Table I.

<TABLE>
<CAPTION>
                                        Table I - Interest Revenue
                                          (Dollars in thousands)


                                              Three Months Ended
                                             March 28,    March 29,
                                                 1997         1996
                                             ---------    ---------
<S>                                         <C>             <C>
   Customer margin balances                  $ 20,629         $ 23,377
   Repurchase agreements                        3,781            1,363
   U.S. Government securities                      96               57
   Securities borrowed                            212              211
   Other                                          267              674
                                             --------         --------
           Total                             $ 24,985         $ 25,682
                                             ========         ========
                                                                      
</TABLE>

Revenue from principal transactions decreased by $10.4 million or 32%.
Revenues derived from market making in equity securities were $14.9 million and
$25.5 million for the three month periods ending March 28, 1997 and March 29,
1996, respectively.  This represents a decrease of $10.6 million or 41.5%
attributable primarily to decreased trading volume and the impact of changes in
order handling rules affecting OLDE Discount's market making activities.
Revenues from dealer activity in fixed income securities were $6.9 million and
$6.7 million for the same periods, respectively.  This represents an increase
of $230,000 or 3.4%.  Overall, such trading revenues are affected by a variety
of factors which cannot be predicted including, but not limited to, market
liquidity, volatility, trader skill, national and international economic
conditions, and legislation and regulation affecting the U.S. and international
business and financial communities.  Changes in any of these factors may affect
future revenue derived from securities trading.





                                       14

<PAGE>   15


                           OLDE Financial Corporation
  Management's Discussion and Analysis of Financial Condition and Results of
                            Operations (Continued)

Compensation expense remained approximately equal to that of the prior period.
Staffing levels slightly decreased from the year earlier period.

Interest expense decreased by $848,000 or 7.2%.  Average customer credit
balances increased somewhat while average securities lending balances were
lower than in the year earlier period.  Interest on subordinated debt was
reduced in the 1997 first quarter by the maturity of $7.5 million of 12% senior
subordinated debentures in April 1996.  The components of interest expense are
identified in Table II.

<TABLE>
<CAPTION>

                                        Table II - Interest Expense
                                           (Dollars in thousands)

                                               Three Months Ended
                                              March 28,   March 29,
                                                1997          1996
                                              ---------   ---------
<S>                                        <C>              <C>
         Customers credit balances           $  8,474         $  7,267
         Subordinated loans                       793            1,018
         Securities lending                     1,300            3,018
         Other                                    314              426
                                             --------         --------
                 Total                       $ 10,881         $ 11,729
                                             ========         ========
                                                              
</TABLE>

Advertising and promotion expense increased by $216,000 or 5.5%.  Communication
expense decreased $251,000 or 9.8%.

General and administrative expenses increased by $796,000 or 12% for the
quarter.  The increase is primarily due to general increases in expenses and
also the ongoing expenses related to the matters described in Note 6 to the
consolidated statements.

Provisions for federal, state and local income taxes decreased by $3.3 million
or 28.4% due to lower pre-tax income than in the year earlier period.  The
difference between the statutory income tax rate and the Company's effective
tax rate is primarily due to provisions for state and local income taxes.





                                       15

<PAGE>   16


                           OLDE Financial Corporation
  Management's Discussion and Analysis of Financial Condition and Results of
                            Operations (Continued)
                        Liquidity and Capital Resources

Most of the Company's assets are highly liquid, consisting primarily of cash,
U.S. Government and U.S. Government agencies securities purchased under
agreements to resell ( which may be segregated for the exclusive benefit of
customers pursuant to regulatory requirements), marketable securities and
receivables from customers and other broker-dealers.  As of March 28, 1997,
approximately $85.6 million of U.S. Government securities purchased under
agreements to resell and cash were segregated in special reserve accounts of
OLDE Discount for the exclusive benefit of customers.  Assets in special
reserve accounts are not available to meet obligations of OLDE Discount except
to customers.  Receivables from customers are collateralized by readily
marketable securities in accordance with margin regulations.  Receivables from
other broker-dealers represent amounts due upon the Company's delivery of
securities, either to settle a sell transaction or close a stock borrowed
position.

The Company does not regularly hold for its own account or actively engage in
the trading of either fixed income securities rated below investment grade
("junk bonds"), derivative securities ("derivatives"), or "penny stocks".  As
an accommodation to customers, the Company may occasionally hold immaterial
positions of such items on a temporary basis.

With the exception of subordinated indebtedness , substantially all of OLDE
Discount's liabilities are due on demand of customers or within 30 days.  OLDE
Discount has historically maintained investment durations of less than 30 days
through investment in repurchase agreements.

Customer credit balances have provided the Company's principal subsidiary, OLDE
Discount, with the primary source of funds for financing customer margin loans.
OLDE Discount has obtained funds from securities lending activities,
subordinated borrowings, and cash generated by operations.  Management believes
that such sources of funds will continue to provide financing for OLDE Discount
in the future.

OLDE Discount has arranged $180 million in secured lines of credit and letters
of credit from two banks and it has periodically drawn on these lines of
credit.  Average daily borrowings, under the Company's current bank
arrangements, were less than $311,500 and there were no amounts outstanding at
any month end date under the lines of credit during the three months ending
March 28, 1997.

OLDE Property Corporation, the primary real estate subsidiary of the Company,
acquired funds through the Company's subordinated debt offering in 1992 and has
subsequently arranged mortgage financing for additional real estate
acquisitions.  To the extent that the Company continues to increase its real
property interests, an increased percentage of the Company's consolidated
assets will not be liquid.

As a broker-dealer registered with the Securities and Exchange Commission, OLDE
Discount is subject to regulatory net capital requirements designed to ensure
the financial integrity and liquidity of broker-dealers.  As of March 28, 1997,
OLDE Discount had net capital for regulatory purposes of $241.5 million which
exceeded its minimum net capital requirement by $218.4 million.  See also, Note
7 to Consolidated Financial Statements.

In February 1997, the Board of Directors of OLDE Discount approved the payment
of cash dividends to the Company in the amount of $45,124,940 and the Board of
Directors of OLDE Asset Management approved the payment of cash dividends to
the company in the amount of $2,250,000.  The dividends were paid in the first
quarter of 1997.  The Company utilized all the funds obtained from the
dividends and redeemed 5,812,876 shares of its capital stock at $8.15 per
share, for total consideration of $47,374,940.





                                       16

<PAGE>   17



The Financial Accounting Standards Board (FASB) issued this year "Statements of
Financial Accounting Standards No. 128, Earnings Per Share, and No. 129,
Disclosure of Information about Capital Structure."  The adoption of these
standards will not have a material effect on the Company's financial statements.





                                       17
<PAGE>   18

Part II. - Other Information

Item 6.          Exhibits and Reports on Form 8-K

                          (a)  Exhibit 27  FINANCIAL DATA SCHEDULE.

                          (b)  There were no reports filed on Form 8-K during
                               the quarterly period ended March 28, 1997.





                                       18

<PAGE>   19


                                   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.


Dated:  May 12, 1997                  OLDE Financial Corporation
                                      --------------------------
                                              (Registrant)



                                              By:/s/ Randal J. Mudge
                                              ----------------------
                                              Randal J. Mudge
                                              President and Director



                                              By:/s/ Mack H. Sutton
                                              ---------------------
                                              Mack H. Sutton
                                              Chief Financial Officer





                                       19
<PAGE>   20

                                 Exhibit Index
                                 -------------





Exhibit No.               Description   
-----------               -----------

27                        Broker-Dealers and Broker Dealer Holding Companies 
                          Financial Data Schedule BD, which is submitted 
                          electronically to the Securities and Exchange 
                          Commission for information only and not filed.







                                       20