U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                   FORM 10-QSB



             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



                For the quarterly period ended September 30, 2005


                        Commission File Number: 000-50936


                               Birch Branch, Inc.
        ----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


           Colorado                                         84-1124170
-------------------------------                ---------------------------------
(State of other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)


                 2525 Fifteenth Street, Ste 3H, Denver, CO 80211
           ----------------------------------------------------------
           (Address of principal executive offices including zip code)


                                 (303) 480-5037
                           --------------------------
                           (Issuer's telephone number)



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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___


As of September 30, 2005, the Registrant had 1,287,393 shares of common stock,
no par value per share, outstanding.

Transitional Small Business Disclosure Format (check one): Yes__    No X


<PAGE>

                                      INDEX
                                      -----

                                                                           Page
                                                                          Number
                                                                          ------

Part I.   Financial Information

     Item I.   Financial Statements

               Balance Sheet as of September 30, 2005
                 (unaudited) and June 30, 2005                               2

               Statements of Operations, Three Months
                 Ended September 30, 2005 and 2004 (unaudited)               3

               Statements of Cash Flows, Three Months
                 Ended September 30, 2005 and 2004 (unaudited)               4

               Notes to Financial Statements                                 5

     Item 2.   Management's Discussion and Analysis of
                 Financial Conditions and Results of
                 Operations                                                  6

Part II.  Other Information                                                  7



<PAGE>

                               BIRCH BRANCH, INC.
                          (A Development Stage Company)
                                 BALANCE SHEETS

                                     ASSETS

                                                 September 30,       June 30,
                                                      2005             2005
                                                  (Unaudited)      (See Note 1)
                                                 -------------    -------------

Current Assets
 Cash                                            $       2,980    $       2,980
                                                 -------------    -------------
Total Current Assets                                     2,980            2,980

Real estate, land                                       55,595           55,595
Real estate, building                                  397,411          384,731
Other assets                                             3,069            1,434
                                                 -------------    -------------
Total Assets                                     $     459,055    $     444,740
                                                 =============    =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
 Accounts payable, related party                          --             13,414
 Accrued real estate taxes                               1,004              670
                                                 -------------    -------------
  Total Current Liabilities                              1,004           14,084

Advance payable, related party                         381,134          355,590
Accrued interest payable, related party                 37,827           30,082
                                                 -------------    -------------
Total Liabilities                                      419,965          399,756


Stockholders' Equity:
 Preferred Stock, no par value,
  50,000,000 shares authorized,
  none issued and outstanding                             --               --
 Common Stock, no par value,
  500,000,000 shares authorized
  1,287,393 shares issued and
  outstanding                                           65,613           65,613
Accumulated (deficit)                                   (5,173)          (5,173)
Accumulated (deficit) during development stage         (21,350)         (15,456)
                                                 -------------    -------------
Total Stockholders' Equity                              39,090           44,984
                                                 -------------    -------------

Total Liabilities and Stockholders' Equity       $     459,055    $     444,740
                                                 =============    =============



The accompanying notes are an integral part of the financial statements.

                                     2
<PAGE>
<TABLE>
<CAPTION>

                               BIRCH BRANCH, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                                      For the Period
                                                                        From July 1,
                                                                       2002 (date of
                                                                       commencement
                                                                      of development
                                          Three Months Ended          stage) through
                                    September 30,    September 30,     September 30,
                                        2005             2004              2005
                                    -------------    -------------    --------------
<S>                                 <C>              <C>              <C>
Revenues                            $        --      $        --      $         --
                                    -------------    -------------    --------------

Expenses
   Accounting and auditing                    875            4,350             8,370
   Legal fees                               1,494             --               4,545
   Filing fees                                110              150             1,197
   Real estate taxes                          335              302             4,158
   Other                                      465             --                 465
                                    -------------    -------------    --------------
                                            3,279            4,802            18,735
                                    -------------    -------------    --------------
Net Operating (Loss)                       (3,279)          (4,802)          (18,735)

Other (Expense):
   Interest expense                        (2,615)            --              (2,615)
                                    -------------    -------------    --------------

Net (Loss)                          $      (5,894)          (4,802)          (21,350)
                                    -------------    -------------    --------------

Per Share                           $        (.01)   $         nil    $         (.02)
                                    =============    =============    ==============

Weighted Average Number of Shares
 Outstanding                            1,287,393        1,287,393         1,287,393
                                    =============    =============    ==============

</TABLE>





The accompanying notes are an integral part of the financial statements.

                                        3
<PAGE>
<TABLE>
<CAPTION>

                               BIRCH BRANCH, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                                                 For the Period
                                                                                   From July 1,
                                                                                  2002 (date of
                                                                                  commencement
                                                                                 of development
                                                     Three Months Ended          stage) through
                                               September 30,    September 30,     September 30,
                                                   2005             2004              2005
                                               -------------    -------------    --------------
<S>                                            <C>              <C>              <C>
Cash Flows from Operating Activities:
  Net (loss)                                   $      (5,894)   $      (4,802)   $      (21,350)
  Adjustment to reconcile net
   (loss) to net cash provided
    by operating activities:
     Increase (decrease) in accounts payable
      and accrued expenses                           (13,079)           4,802               (47)
                                               -------------    -------------    --------------
Net Cash (Used in) Operating Activities              (18,973)            --             (21,397)
                                               -------------    -------------    --------------
Cash Flows from Investing Activities                    --               --                --
                                               -------------    -------------    --------------
Cash Flows from Financing Activities
   Additional paid-in capital                           --               --               2,424
   Advances from related party                        18,973             --              18,973
                                               -------------    -------------    --------------
Net Cash Provided by Investing Activities             18,973             --              21,397
                                               -------------    -------------    --------------
Increase (Decrease) in Cash                             --               --                --

Cash, Beginning of Period                              2,980            2,980             2,980
                                               -------------    -------------    --------------
Cash, End of Period                            $       2,980    $       2,980    $        2,980
                                               =============    =============    ==============
Interest Paid                                  $        --      $        --      $         --
                                               =============    =============    ==============
Income Taxes Paid                              $        --      $        --      $         --
                                               =============    =============    ==============

Schedule of non-cash financing and investing activities:

Construction in progress financed
by advances payable from related
party including accrued interest               $      12,680    $      56,145    $      356,104
                                               =============    =============    ==============

</TABLE>

The accompanying notes are an integral part of the financial statements.

                                        4
<PAGE>

                               BIRCH BRANCH, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                         September 30, 2005 (Unaudited)


(1)   Unaudited Financial Statements

The balance sheet as of September 30, 2005, the statements of operations for the
three month periods ended September 30, 2005 and 2004 and the statements of cash
flows for the three month periods ended September 30, 2005 and 2004, have been
prepared by Birch Branch, Inc. (Company) without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures, normally included in the financial statements prepared
in accordance with accounting principles generally accepted in the United States
of America, have been condensed or omitted as allowed by such rules and
regulations, and the Company believes that the disclosures are adequate to make
the information presented not misleading. The results of operations for the
three months ending September 30, 2005 are not necessarily indicative of results
expected for the full year ending June 30, 2005. In the opinion of management,
all adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and changes in
financial position at September 30, 2005 and for all periods presented, have
been made.

It is suggested that these statements be read in conjunction with the June 30,
2005 audited financial statements and the accompanying notes included in the
Company's Report on Form 10-KSB, filed with the Securities and Exchange
Commission.

(2)   Related party transactions

As of September 30, 2005, the Company's President has advanced $381,134, plus
accrued interest at 8% per annum of $37,827 to the Company for the construction
in progress and operating expenses. Subsequent to September 30, 2005, the
Company's President has funded approximately an additional $7,500 for the
additional costs. Since the construction has been completed, the Company's
President and the Company are in the process of converting the advance to a
mortgage note payable collateralized by the land and building owned by the
Company.

The mortgage loan will accrue interest at 8% per annum with the total note and
accrued interest due five years from the date of completion of the construction.
Construction note interest is being capitalized during the construction period.
Immaterial real estate taxes on this property, subject to the construction in
progress, are expensed as incurred.

There were 1,325,000 shares of common stock outstanding at July 1, 2002. To
facilitate the one for one distribution, 37,607 shares were cancelled for no
consideration.

The Company uses the offices of its President for its minimal office facility
needs for no consideration. No provision for these costs has been provided since
it has been determined that they are immaterial.



                                        5
<PAGE>

                                     ITEM 2

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Certain statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations which are not historical facts are
forward-looking statements such as statements relating to future operating
results, existing and expected competition, financing and refinancing sources
and availability and plans for future development or expansion activities and
capital expenditures. Such forward-looking statements involve a number of risks
and uncertainties that may significantly affect our liquidity and results in the
future and, accordingly, actual results may differ materially from those
expressed in any forward-looking statements. Such risks and uncertainties
include, but are not limited to, those related to effects of competition,
leverage and debt service financing and refinancing efforts, general economic
conditions, changes in laws and regulations, and risks related to merger and
acquisition activities. The following discussion and analysis should be read in
conjunction with the financial statements and notes thereto appearing elsewhere
in this report.

Overview

The Company was organized on September 28, 1989 under the laws of the state of
Colorado. Until November 12, 2002, the Company was a wholly owned subsidiary of
Pride Holdings, Inc. Pride Holdings is a wholly-owned subsidiary of Pride, Inc.
(PRIDE). Pride, Inc. was a wholly-owned subsidiary of Prime Rate Income &
Dividend Enterprises, Inc. (PIDV). On November 12, 2002, the directors of PIDV
approved, subject to the effectiveness of a registration with the Securities and
Exchange Commission, the spin-off of PRIDE to the PIDV shareholders of record on
November 26, 2002 on a pro rata basis, exclusive of shares issued to U.S.
Medical Systems, Inc. (USMS) shareholders effective November 12, 2002. PIDV
entered into a share exchange agreement with USMS whereby USMS became a
wholly-owned subsidiary of PIDV. This business combination completed in
November, 2002, was accounted for as a reverse acquisition of PIDV since the
former controlling shareholders of USMS controlled PIDV after the transaction.
Since USMS's business is not related to the real estate and mortgage investment
business of PRIDE, the PIDV directors decided it was in the best interest of
PIDV and PRIDE and PIDV's shareholders to spin-off PRIDE. The conditions of the
business combination agreement with USMS stipulate that PRIDE would be spun-off
to PIDV shareholders. The shares of PRIDE are being held by Michael L.
Schumacher, President, for the benefit of PIDV shareholders, in escrow with
instructions to distribute the PRIDE shares once the PRIDE Form 10-SB is
effective with the Securities and Exchange Commission. Management of PRIDE
intends to continue operations of PRIDE in the same manner as prior to the
spin-off and does not anticipate any additional corporate transactions which
might impact the continuing interest of the shareholders.

Simultaneous with the spin-off of Pride, Inc., the directors of Pride and Pride
Holdings, Inc. determined that Birch Branch should also be distributed in the
same manner to the same qualified PIDV shareholders. Birch Branch is the owner
of five residential lots comprising a total of eight acres in Nebraska. Since
Birch Branch desired to develop this property and needed additional capital to
fund this development, it was determined that it was in the best interest of
Pride's shareholders to spin-off Birch Branch to the same PIDV qualified
shareholders.

Birch Branch owns real estate in Nebraska. At November 12, 2002, Birch Branch
had tentative plans to build a replica of a historic artist's studio (Studio) on
one of the Nebraska lots, but had not commenced construction at that time. The
tentative plans called for using the Studio as a private museum and as a bed and
breakfast type rental facility. Construction began on the Studio in 2003 and is
complete as of September 30, 2005. Since there are five lots included in this
property, the remaining four lots are being held as investments for potential
future development or sale.

Results of Operations

The Company generated no revenues during the quarter ended September 30, 2005,
and management does not anticipate any revenues until May 2006, due to the
seasonal nature of the business.

The Company has minimal capital.

 At September 30, 2005, the Company had commitments of approximately $10,000 for
capital expenditures related to furnishing the Studio.

                                       6
<PAGE>

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         None.

Item 3.  Defaults upon Senior Securities

         None.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits.

         31.1   Certification of Chief Executive Officer     Filed herewith
                and  Chief Financial Officer pursuant        electronically
                to Section 302 of the Sarbanes-Oxley
                Act of 2002

         31.2   Certification of Vice-President pursuant     Filed herewith
                to Section 302 of the Sarbanes-Oxley         electronically
                Act of 2002

         32.1   Certification of Chief Executive Officer     Filed herewith
                and Chief Financial Officer pursuant         electronically
                to 18 U.S.C. Section 1350

         32.2   Certification of Vice-President pursuant     Filed herewith
                to 18 U.S.C. Section 1350                    electronically

         (b) Reports on Form 8-K.

         None





                                        7
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this quarterly report to be signed
on its behalf by the undersigned, thereunto duly authorized.

Birch Branch, Inc.


/s/ Michael Schumacher
-----------------------------------------------------------------
Michael Schumacher, President, Treasurer, Chief Executive Officer
 Chief Financial Officer and Director


Date:  November 21, 2005


/s/ George A. Powell
-----------------------------------------------------------------
George A. Powell, Vice-President, Secretary and Director

Date:  November 21, 2005









                                       8