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

                                 FORM 10-QSB

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


                     For quarter ended September 30, 1998

                       Commission file number   33-47248

                             SLADE'S FERRY BANCORP
            (Exact name of registrant as specified in its charter)

              Massachusetts                       04-3061936
    (State or other jurisdiction of           (I.R.S. Employer
     incorporation or organization)         Identification Number)

       100 Slade's Ferry Avenue                     02726
        Somerset, Massachusetts                  (Zip Code)
(Address of principal executive offices)

                                (508)675-2121
            (Registrant's telephone number, including area code)

Check 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 
past 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 practical date:

Common stock ($.01 par value) 3,427,953.365 shares as of September 30, 1998

Traditional Small Business Disclosure Format:

                            Yes  [X]      No  [ ]

                                   PART I
                                   ITEM 1

Financial Statements

                            SLADE'S FERRY BANCORP
                         CONSOLIDATED BALANCE SHEET
                                 (UNAUDITED)

<TABLE>
<CAPTION>
                                      September 30, 1998    December 31, 1997
                                      ------------------    -----------------

<S>                                      <C>                  <C>
ASSETS:
Cash and due from banks                  $ 12,596,141         $ 13,323,501
Federal funds sold                          8,500,000            7,000,000
Interest bearing time deposits                      0              106,688
Investment securities(1)                   20,348,465           17,601,536
Securities available for sale(1)           50,050,230           40,176,218
Federal Home Loan Bank stock                  899,900              890,600
Loans (net)                               211,265,987          209,309,840
Premises and equipment                      6,380,358            5,718,534
Other real estate owned                       582,064              159,373
Accrued interest receivable                 1,941,672            1,796,467
Goodwill                                    2,910,468            3,080,568
Other assets                                4,246,992            2,407,260
                                         ---------------------------------
      TOTAL ASSETS                       $319,722,277         $301,570,585
                                         =================================

LIABILITIES & STOCKHOLDERS' EQUITY:
Deposits                                 $286,126,417         $271,322,250
Short term borrowings                         315,966            1,200,000
Notes payable                               2,613,714            1,375,308
Other liabilities                           1,714,906            1,236,601
                                         ---------------------------------
      TOTAL LIABILITIES                   290,771,003          275,134,159

STOCKHOLDERS' EQUITY:
Common stock                                   34,280               32,367
Paid in capital                            22,014,042           18,978,598
Retained earnings                           6,762,541            7,276,174
Net unrealized gain on investments
 in available for sale securities             140,411              149,287
                                         ---------------------------------
      TOTAL STOCKHOLDERS' EQUITY           28,951,274           26,436,426
                                         ---------------------------------
      TOTAL LIABILITIES & 
       STOCKHOLDERS' EQUITY              $319,722,277         $301,570,585
                                         =================================

<FN>
<F1>  Investment securities are to be held to maturity ahd have a fair market
      value of $20,585,685 as of September 30, 1998 and $17,748,500 as of
      December 31, 1997.
<F2>  Securities classified as Available for Sale are stated at fair value
      with any unrealized gains or losses reflected as an adjustment in
      Stockholders' Equity.
</FN>
</TABLE>


                CONSOLIDATED STATEMENT OF INCOME AND EXPENSE
                                 (UNAUDITED)
                        9 MONTHS ENDING SEPTEMBER 30,

<TABLE>
<CAPTION>
                                                     1998             1997
                                                     ----             ----

<S>                                              <C>              <C>
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans                       $14,902,281      $14,105,859
Interest and dividends on investments              2,850,176        2,655,885
Other interest                                       449,620          497,129
                                                 ----------------------------
      Total interest and dividend income          18,202,077       17,258,873
                                                 ----------------------------

INTEREST EXPENSE:
Interest on deposits                               7,856,863        7,661,261
Interest on other borrowed funds                     143,330          108,962
                                                 ----------------------------
      Total interest expense                       8,000,193        7,770,223
                                                 ----------------------------
      Net interest and dividend income            10,201,884        9,488,650
                                                 ----------------------------

PROVISION FOR LOAN LOSSES                            450,000          450,000
  Net interest and dividend income
   after provision for loan losses                 9,751,884        9,038,650
                                                 ----------------------------

OTHER INCOME:
Service charges on deposit accounts                  681,107          707,690
Security gains, net                                  382,370          312,865
Other income                                         200,499          227,658
                                                 ----------------------------
      Total other income                           1,263,976        1,248,213
                                                 ----------------------------

OTHER EXPENSE:
Salaries and employee benefits                     4,056,344        4,072,061
Occupancy expense                                    515,451          501,282
Equipment expense                                    429,012          467,761
Loss (gain) on sale of other real estate owned       (33,039)          27,166
Writedown of other real estate owned                       0            6,449
Other expense                                      1,730,539        1,768,685
                                                 ----------------------------
      Total other expense                          6,698,307        6,843,404
                                                 ----------------------------

Income before income taxes                         4,317,553        3,443,459

Income taxes                                       1,708,504        1,380,503
                                                 ----------------------------

NET INCOME                                       $ 2,609,049      $ 2,062,956
                                                 ============================

Basic earnings per share                         $      0.77      $      0.66
                                                 ============================

Diluted earnings per share                       $      0.77      $      0.66
                                                 ============================

Average shares outstanding                         3,390,719        3,128,625
                                                 ============================
</TABLE>


                CONSOLIDATED STATEMENT OF INCOME AND EXPENSE
                                 (UNAUDITED)
                        3 MONTHS ENDING SEPTEMBER 30,

<TABLE>
<CAPTION>
                                                     1998             1997
                                                     ----             ----

<S>                                              <C>              <C>
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans                       $ 5,150,988      $ 4,972,912
Interest and dividends on investments              1,004,961          909,841
Other interest                                       113,973          130,667
                                                 ----------------------------
      Total interest and dividend income           6,269,922        6,013,420
                                                 ----------------------------

INTEREST EXPENSE:
Interest on deposits                               2,625,112        2,610,050
Interest on other borrowed funds                      59,152           34,971
                                                 ----------------------------
      Total interest expense                       2,684,264        2,645,021
                                                 ----------------------------
      Net interest and dividend income             3,585,658        3,368,399
                                                 ----------------------------

PROVISION FOR LOAN LOSSES                            150,000          150,000
  Net interest and dividend income
   after provision for loan losses                 3,435,658        3,218,399
                                                 ----------------------------

OTHER INCOME:
Service charges on deposit accounts                  221,401          227,863
Security gains, net                                  197,901           83,315
Other income                                          59,573           60,355
                                                 ----------------------------
      Total other income                             478,875          371,533
                                                 ----------------------------

OTHER EXPENSE:
Salaries and employee benefits                     1,402,525        1,382,167
Occupancy expense                                    170,600          163,310
Equipment expense                                    137,395          156,425
Loss (gain) on sale of other real estate owned       (37,275)          33,491 
Writedown of other real estate owned                       0            6,449
Other expense                                        586,695          633,290
                                                 ----------------------------
      Total other expense                          2,259,940        2,375,132
                                                 ----------------------------

Income before income taxes                         1,654,593        1,214,800

Income taxes                                         654,951          486,385
                                                 ----------------------------

NET INCOME                                       $   999,642      $   728,415
                                                 ============================

Basic earnings per share                         $      0.29      $      0.22
                                                 ============================

Diluted earnings per share                       $      0.29      $      0.22
                                                 ============================

Average shares outstanding                         3,423,922        3,378,853
                                                 ============================
</TABLE>


                    SLADE'S FERRY BANCORP AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                       Nine Months Ended September 30,
                                 (Unaudited)

<TABLE>
<CAPTION>
                                                       1998              1997
                                                       ----              ----

<S>                                               <C>               <C>
Reconciliation of net income to net cash used
 in operating activities:

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                        $  2,609,049      $  2,062,956
Adjustments to reconcile net income to net
 cash used in operating activities:
  Accretion, net of amortization of fair
   market value adjustments                             (6,538)           (4,288)
  Amortization of goodwill                             170,100           170,100
  Gain on sale of fixed assets                          (2,700)           (4,000)
  Depreciation and amortization                        494,619           485,015
  Securities available for sale gains, net            (382,370)         (312,865)
  Provision for loan losses                            450,000           450,000
  Increase (decrease) in taxes payable                 227,314            (8,389)
  Increase in interest receivable                     (145,205)         (149,829)
  Decrease in interest payable                         (15,291)          (14,291)
  Increase in accrued expenses                         433,749           210,216
  (Increase) decrease in prepaid expenses               55,581           (74,588)
  Accretion of securities, net of amortization        (102,092)         (145,812)
  Accretion of securities available for sale,
   net of amortization                                  20,557           (33,510)
  Loss (gain) on sale of other real estate
   owned                                               (33,039)           27,166
  Writedown of other real estate owned                     -0-            19,739
  Change in unearned income                             68,822            52,253
  (Increase) decrease in other assets               (2,137,818)          295,255 
  Increase (decrease) in other liabilities              57,835          (377,518)
                                                  ------------------------------
      Net cash provided by operating activities   $  1,762,573      $  2,647,610
                                                  ------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of securities available for sale       (27,365,464)      (10,405,473)
  Maturities of securities available for sale       16,812,650         7,258,379
  Sales of securities available for sale             1,046,930         1,389,999
  Proceeds from sale of other real estate owned        192,412           302,683
  Proceeds from maturities of investment
   securities                                        7,572,094        11,517,664
  Purchases of investment securities               (10,216,931)      (12,601,384)
  Net increase in loans                             (3,111,071)      (14,711,344)
  Capital expenditures                              (1,156,443)         (200,642)
  Proceeds from sale of fixed assets                     2,700             4,000
  Purchases of Federal Home Loan Bank Stock             (9,300)              -0-
  Recoveries of previously charged-off loans            62,588            47,612
  Maturities of interest bearing time deposits         106,688            42,910
                                                  ------------------------------
      Net cash used in investing activities       $(16,063,147)     $(17,355,596)
                                                  ------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of stock                 $    469,594      $  4,165,702
  Net increase (decrease) in demand deposits,
   NOW, money market and savings accounts            1,281,154        (7,391,063)
  Net increase in time deposits                     13,523,013         7,165,082
  Net increase (decrease) in short-term
   borrowing                                          (884,034)          119,690
  Dividends paid                                      (554,919)         (461,408)
  Increase (decrease) in notes payable               1,238,406           (67,626)
                                                  ------------------------------
      Net cash provided by financing activities   $ 15,073,214      $  3,530,377
                                                  ------------------------------

  Net increase (decrease) in cash and cash
   equivalents                                         772,640       (11,177,609)

  Cash and cash equivalents at beginning of
   period                                           20,323,501        24,128,724 
                                                  ------------------------------

      Cash and cash equivalents at end of
       period                                     $ 21,096,141      $ 12,951,115 
                                                  ==============================

SUPPLEMENTAL DISCLOSURES:
  Loans originating from sales of Other Real
   Estate Owned                                   $     60,800      $     93,600
  Interest paid                                   $  8,015,484      $  7,784,514
  Income taxes paid                               $  1,481,190      $  1,388,892
  Loans transferred to Other Real Estate Owned    $    582,064      $    287,239 
</TABLE>


      SLADE'S FERRY BANCORP AND SUBSIDIARY, SLADE'S FERRY TRUST COMPANY
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                             September 30, 1998

Note A - Basis of Presentation

The accompanying unaudited consolidated financial statements have been 
prepared in accordance with generally accepted accounting principles for 
interim financial information and the instructions to Form 10-QSB and, 
accordingly, do not include all of the information and footnotes required by 
generally accepted accounting principles for complete financial statements. 
In the opinion of the management of Slade's Ferry Bancorp, all adjustments 
(consisting of normal recurring accruals) considered necessary for a fair 
presentation have been included.  Operating results for the nine months 
ended September 30, 1998 are not necessarily indicative of the results that 
may be expected for the year ending December 31, 1998.

Note B - Accounting Policies

The accounting principles followed by Slade's Ferry Bancorp and subsidiary 
and the methods of applying these principles which materially affect the 
determination of financial position, results of operations, or changes in 
financial position are consistent with those used at year end 1997.

The consolidated financial statements of Slade's Ferry Bancorp include its 
wholly-owned subsidiary, Slade's Ferry Trust Company, and its subsidiaries, 
the Slade's Ferry Realty Trust and the Slade's Ferry Securities Corporation. 
 All significant intercompany balances have been eliminated.

ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS

FINANCIAL CONDITION

At September 30, 1998 the Company had total assets of $319.7 Million 
compared to $301.6 Million reported at December 31, 1997.  The increase in 
assets of $18.1 Million occurred predominately in investment securities of 
$2.7 Million and securities available for sale of $9.9 Million.  Funding for 
the purchases of these investment products was provided by the increase in 
deposit levels.  Deposits at September 30, 1998 totaled $286.1, up by $14.8 
Million from $271.3 Million reported at year end 1997.  Certificates of 
deposits is the largest deposit component and represents $145.6 Million 
reflecting a growth of $13.5 Million during the first nine months of 1998 
from $132.1 Million at the end of 1997.  The remaining increase of $1.3 
Million occurred in the demand deposit and savings categories.  Certificates 
of deposits do not extend out beyond three years.

The loan portfolio which generally averages monthly paydowns of $2.5 
Million, had a net increase of $2.0 Million since December 31, 1997.  The 
bank also financed $1.7 Million in loans to qualified commercial borrowers 
through a match funding program offered by the Federal Home Loan Bank.  The 
interest earned on these types of loans generally yields less than 
conventional financing.  This product is offered only to borrowers that meet 
certain credit and deposit requirements.

Premises and equipment increased by $662,000 at September 30, 1998 due to a 
capital outlay of $1,050,000, net of year to date depreciation.  The capital 
outlay consisted of $550,000 to acquire a plot of land located at 833 Ashley 
Boulevard, New Bedford, Massachusetts for the purpose of erecting a colonial 
style branch bank.  It is estimated that the cost of construction will be 
approximately $400,000 for a total estimated cost of $950,000.  The Bank 
also paid $500,000 to purchase a branch bank facility at 1601 South Main 
Street, Fall River, Massachusetts.  This facility was formerly a branch of 
BankBoston prior to its closing in June 1998.  The Bank anticipates that the 
two branches will be opened by mid January 1999.

Other assets increased by $1.8 Million during the past nine months of which 
$1.6 Million was used to purchase single premium life insurance policies, 
which provide each member of the Board of Directors with a supplementary 
life insurance benefit.

At September 30, 1998, securities classified as Available for Sale had net 
unrealized gains of $140,411 as a result of current market conditions, 
compared to net unrealized gains of $149,287 reported on December 31, 1997. 
 Securities in the Available for Sale category may be sold if it becomes 
desirable to improve liquidity, or when management feels it would be 
appropriate to improve interest rate risk by selling securities and 
reinvesting the proceeds into higher yielding investments.

Investment Securities are securities that the Company will hold to maturity 
and are carried at amortized cost on the balance sheet, and are summarized 
as follows as of September 30, 1998.

<TABLE>
<CAPTION>
                                                                      Gross
                                                      Gross        Unrealized
                                      Amortized     Unrealized       Holding
(Dollars in Thousands)                Cost Basis   Holding Gains     Losses     Fair Value
------------------------------------------------------------------------------------------

<S>                                     <C>             <C>           <C>        <C>
Debt securities issued by the U.S.
 Treasury and other U.S. Government
 corporations and agencies              $ 9,314         $101          $--        $ 9,415

Debt securities issued by states of
 the United States and political
 subdivisions of the states              10,898          136            1         11,033

Mortgage-backed securities                  136            1           --            137

Other debt securities                         1           --           --              1
                                        ------------------------------------------------
                                        $20,349         $238          $ 1        $20,586
                                        ================================================
</TABLE>

Investments in Available for Sale securities are carried at fair value on 
the balance sheet and are summarized as follows as of September 30, 1998.

<TABLE>
<CAPTION>
                                                                      Gross
                                                      Gross        Unrealized
                                      Amortized     Unrealized       Holding
(Dollars in Thousands)                Cost Basis   Holding Gains     Losses     Fair Value
------------------------------------------------------------------------------------------

<S>                                     <C>             <C>           <C>        <C>
Debt securities issued by the U.S.
 Treasury and other U.S. Government
 corporations and agencies              $38,357         $240          $ 87       $38,510

Marketable Equities                       1,876          227           219         1,884

Mortgage-backed securities                9,091           75             5         9,161

Asset-backed securities                     226            2            --           228
                                        ------------------------------------------------
                                        $49,550         $544          $311       $49,783
                                        ================================================

Increase to Stockholders' Equity:
(In Whole Dollars)
  Unrealized gain on Available for Sale Securities               $234,122
  Less Tax effect                                                  93,711
                                                                 --------
  Net unrealized gain on Available for Sale Securities           $140,411
                                                                 ========
</TABLE>

          INFORMATION WITH RESPECT TO NONACCRUAL AND PAST DUE LOANS
        AT SEPTEMBER 30, 1998 AND 1997 AND DECEMBER 31, 1997 AND 1996

<TABLE>
<CAPTION>
                                       At September 30          At December 31
--------------------------------------------------------------------------------
(Dollars in Thousands)                 1998        1997        1997        1996
--------------------------------------------------------------------------------

<S>                                   <C>         <C>         <C>         <C>
Nonaccrual Loans                      $3,717      $4,719      $4,597      $4,352

Loans 90 days or more past due and
 still accruing                          421         707         147         112

Real estate acquired by forclosure
 or substantively repossessed            582         245         159         308

Percentage of nonaccrual loans to
 total loans                            1.62%       2.21%       2.15%       2.19%

Percentage of nonaccrual loans and
 real estate acquired by foreclosure
 or substantively repossessed to
 total assets                           1.34%       1.67%       2.00%       1.88%

Percentage of allowance for possible
 loan losses to nonaccrual loans       94.19%      76.48%      80.36%      77.07%
</TABLE>

The $3.7 Million in nonaccrual loans consists of $3.4 Million of real estate 
mortgages and $.3 Million attributed to commercial loans. There are no 
restructured loans outstanding in the nonaccrual category at September 30, 
1998.

The Company's nonperforming assets as a total decreased to $4.7 Million at 
September 30, 1998 from $4.9 Million reported on December 31, 1997. The 
Company considers nonaccrual loans, loans past due 90 days or more but still 
accruing, and real estate acquired by foreclosure or substantively 
repossessed as nonperforming assets. Nonaccrual loans, which is the largest 
component of nonperforming assets, decreased by $880,000 during this nine 
month period. The decrease consists of $1.3 Million of loans placed into the 
nonaccrual status, offset by $2.1 Million representing payments and loans 
resolved or charged off. A $1.3 Million commercial real estate loan that had 
been previously classified as nonaccrual in March 1997 remains in the 
nonaccrual category despite payments being made by the borrower which are 
applied directly to principal. Pursuant to the Company's normal policy, the 
loan will remain in the nonaccrual status until the loan becomes current and 
the borrower can demonstrate a regular consistent schedule of payments. The 
real estate collateralizing this loan has an appraised value of $2.7 Million 
obtained in December 1997. Loans past due 90 days or more but still accruing 
increased to $421,000 from $147,000 reported at the end of 1997. This amount 
represents three separate loans that have properties with substantial values 
collateralizing each loan. Therefore, the Company has elected to continue to 
accrue income on these loans.

Real estate acquired through foreclosure or substantively repossessed 
increased to $582,000 at September 30, 1998 and consists of three parcels of 
real estate.

The percentage of nonaccrual loans to total loans decreased from 2.15% 
reported at year end 1997 to 1.62% at September 30, 1998 primarily due to 
the decrease in the nonaccrual category and the slight increase in the total 
loan portfolio.

INFORMATION WITH RESPECT TO NONACCRUAL AND RESTRUCTURED LOANS
AT SEPTEMBER 30, 1998 AND 1997 AND DECEMBER 31, 1997 AND 1996

<TABLE>
<CAPTION>
                                       At September 30          At December 31
---------------------------------------------------------------------------------
(Dollars in Thousands)                 1998        1997        1997         1996
---------------------------------------------------------------------------------

<S>                                   <C>         <C>         <C>          <C>
Nonaccrual Loans                      $3,717      $4,719      $4,597       $4,352

Interest income that would have
 been recorded under original terms   $  267      $  308      $  394       $  361

Interest income recorded during
 the period                           $   21      $   39      $   58       $   62
</TABLE>

The Company stops accruing interest on a loan once it becomes past due 90 
days or more unless there is adequate collateral and the financial condition 
of the borrower is sufficient. When a loan is placed on a nonaccrual status, 
all previously accrued but unpaid interest is reversed and charged against 
current income. Interest is thereafter recognized only when payments are 
received and the loan becomes current.

Loans in the nonaccrual category will remain until the possibility of 
collection no longer exists, the loan is paid off or becomes current. When a 
loan is determined to be uncollectible, it is then charged off against the 
Allowance for Possible Loan Losses.

Statement of Financial Accounting Standards No. 114 "Accounting by Creditors 
for Impairment of a Loan" applies to all loans except large groups of smaller-
balance homogeneous loans that are collectively evaluated for impairment, 
loans measured at fair value or at a lower of cost or fair value, leases, 
and debt securities as defined in Statement 115. Statement 114 requires that 
impaired loans be valued at the present value of expected future cash flows 
discounted at the loan's effective interest rate or as a practical 
expedient, at the loan's observable market value of the collateral if the 
loan is collateral dependent. Smaller-balance homogenous loans are considered 
by the Company to include consumer installment loans and credit card loans.

Included in the $3,716,965 in nonaccrual loans are $3,713,774 which the 
Company has determined to be impaired, for which $735,871 have a related 
allowance for credit losses of $187,577 and $2,977,903 have no related 
allowance for credit losses.

The Company has $500,000 of potential problem loans for which payments are 
presently current. However, the borrowers are experiencing financial 
difficulty. These loans are subject to management's attention and their 
classification is reviewed monthly. If these loans should become 
nonperforming, the effect will be immaterial, due to the asset values of 
their collateral.

There were no other loans classified for regulatory purposes at September 
30, 1998 that management reasonably expects will materially impact future 
operating results, liquidity or capital resources.

             ANALYSIS OF THE ALLOWANCE FOR POSSIBLE LOAN LOSSES

<TABLE>
<CAPTION>
                                         Nine Months             Years Ended
                                       At September 30          At December 31
---------------------------------------------------------------------------------
(Dollars in Thousands)                 1998        1997        1997         1996
---------------------------------------------------------------------------------

<S>                                   <C>         <C>         <C>         <C>
Balance at January 1                  $3,694      $3,354      $3,354      $2,498
                                      ------------------------------------------
Charge-offs:
Commercial                                --         (40)        (40)       (276)
Real estate-construction                  --          --          --          --
Real estate-mortgage                    (651)       (147)       (147)         (4)
Installment/consumer                     (54)        (56)        (68)       (159)
                                      ------------------------------------------
                                        (705)       (243)       (255)       (439)
                                      ------------------------------------------

Recoveries:
Commercial                                 6          12          41         332
Real estate-construction                  --          --          --          --
Real estate-mortgage                      42           1          16          --
Installment/consumer                      14          35          38         107
                                      ------------------------------------------
                                          62          48          95         439
                                      ------------------------------------------

Net Charge-offs                         (643)       (195)       (160)         --
                                      ------------------------------------------

Additions charged to operations          450         450         500         400
Allowance attributable to
 acquisition                              --          --          --         456
                                      ------------------------------------------

Balance at end of period              $3,501      $3,609      $3,694      $3,354
                                      ==========================================

Ratio of net charge-offs to
 average loans outstanding             0.300%       0.09%      0.080%      0.000%
</TABLE>

The Allowance for Possible Loan Losses at September 30, 1998 was $3,500,706, 
compared to $3,693,865 at year end 1997. The decrease is due to the amount 
of loans charged off during the second quarter totaling $559,000 which 
occurred in the real estate loan category. The Allowance for Possible Loan 
Losses as a percentage to outstanding loans decreased by 0.11% during the 
nine month period to 1.62% from 1.73% reported at year end 1997.

The Bank provided $500,000 in 1997, $400,000 in 1996, and $450,000 as of 
September 30, 1998 to the Allowance for Possible Loan Losses. Loans charged 
off were $255,000 in 1997, $439,000 in 1996, and $705,000 as of September 
30, 1998. Despite the amount of charge offs that occurred during the second 
and third quarters in 1998, management believes that the current level of 
the Allowance for Loan Losses is adequate to absorb any losses in the 
foreseeable future due to the value of assets collateralizing the loan 
portfolio.

The level of the Allowance for Possible Loan Losses is evaluated by 
management and encompasses several factors, which include but are not 
limited to, recent trends in the nonperforming loans, the adequacy of the 
assets which collateralize the nonperforming loans, current economic 
conditions in the market area, and various other external and internal 
factors.

This table shows an allocation of the allowance for loan losses as of the 
end of each of the periods indicated.

<TABLE>
<CAPTION>
                             September 30, 1998      December 31, 1997      December 31, 1996
-----------------------------------------------------------------------------------------------
                                       Percent of             Percent of             Percent of
                                        Loans in               Loans in               Loans in
                                         Each                   Each                   Each
                                        Category               Category               Category
                                        to Total               to Total               to Total
                            Amount       Loans      Amount      Loans      Amount      Loans
-----------------------------------------------------------------------------------------------
                                                  (Dollars in Thousands)

<S>                        <C>           <C>       <C>          <C>       <C>           <C>
Domestic:
Commercial                 $1,266(1)     21.22%    $  984(1)    17.14%    $  789(1)     15.70%
Real estate-Construction       25         1.74         44        3.12         41         3.46
Real estate-Mortgage        1,871(2)     73.98      2,311(2)    76.50      2,150(2)     77.42
Consumer(3)                   339(4)      3.06        355(4)     3.24        374(4)      3.42
                           ------------------------------------------------------------------
                           $3,501       100.00%    $3,694      100.00%    $3,354       100.00%
                           ==================================================================

<FN>
<F1>  Includes amounts specifically reserved for impaired loans of $67,070 
      as of September 30, 1998, $42,937 as of December 31, 1997 and $0.00 as
      of December 31, 1996 as required by Financial Accounting Standard No.
      114, Accounting for Impairment of Loans.
<F2>  Includes amounts specifically reserved for impaired loans of $312,940 
      as of September 30, 1998, $566,220 as of December 31, 1997 and $838,290
      as of December 31, 1996 as required by Financial Accounting Standard No.
      114, Accounting for Impairment of Loans.
<F3>  Includes consumer, obligations of states and political subdivisions 
      and other.
<F4>  Includes amounts specifically reserved for impaired loans of $17,364 
      as of September 30, 1998, $14,413 as of December 31, 1997, and $0.00 as
      of December 31, 1996, as required by Financial Accounting Standard No.
      114, Accounting for Impairment of Loans.
</FN>
</TABLE>

The loan portfolio's largest segment of loans is commercial real estate 
loans, which represent 53.5% of gross loans. Residential real estate
represents 20.5% of gross loans. The Company requires a loan to value ratio 
of 80% in both commercial and residential mortgages. These mortgages are 
secured by real properties which have a readily ascertainable appraised 
value.

Generally, commercial real estate loans have a higher degree of credit risk 
than residential real estate loans because they depend primarily on the 
success of the business. When granting these loans, the Company evaluates 
the financial statements of the borrower(s), the location of the real 
estate, the quality of management, and general economic and competitive 
conditions. When granting a residential mortgage, the Company reviews the 
borrower(s)' repayment history on past debts, and assesses the borrower(s)' 
ability to meet existing obligations and payments on the proposed loans.

Commercial loans consist of loans predominantly collateralized by inventory, 
furniture and fixtures, and accounts receivable. In assessing the collateral 
for this type of loan, management applies a 40% liquidation value to 
inventories, 25% to furniture, fixtures and equipment, and 60% to accounts 
receivable. Commercial loans represent 21% of the loan portfolio.

Consumer loans are generally unsecured credits and represent 3% of the total 
loan portfolio. These loans have a higher degree of risk than residential 
mortgage loans. The underlying collateral of a secured consumer loan tends to 
depreciate in value. Consumer loans are typically made based on the 
borrower's ability to repay the loan through continued financial stability. 
The Company endeavors to minimize risk by reviewing the borrower's repayment 
history on past debts, and assessing the borrower's ability to meet existing 
obligations on the proposed loans.

The allocation of the Allowance for Loan Losses is based on management's 
judgement of potential losses in the respective portfolios. While management 
has allocated reserves to various portfolio segments, the Allowance is 
general in nature and is available for the portfolio in its entirety.

RESULTS OF OPERATIONS

Net interest income for nine months ending September 30, 1998 increased by 
$713,234 to $10,201,884 when compared to $9,488,650 recorded during the same 
period in 1997. Total interest and dividend income increased by $943,204 
primarily due to a larger loan base. This was offset by an increase of 
$195,602 in interest expense, due to higher deposit levels being serviced 
during the current nine month period compared to the same period in the 
previous year.

The Provision for Loan Losses is a charge against earnings and funds the 
Allowance for Possible Loan Losses. The Bank's provision during the nine 
month period ending September 30, 1998 was $450,000, the same amount that 
was provided during the same period in the prior year.

Total Other income increased by $15,763 for the first nine months in 1998, 
compared to the same period in 1997. Service charges on deposit accounts 
were down by $26,583 due to customers switching to no fee checking accounts, 
which are provided in order to remain competitive with other area banks and 
credit unions. The Company realized $382,370 of gains on sales of securities 
due to the sale of various corporate equities, compared to $312,865 realized 
in the same period of the previous year. The line item Other Income 
decreased by $27,159 compared to the same period in 1997. During the first 
quarter in 1997, non-recurring income totaling $18,432 associated with the 
acquisition of the National Bank of Fairhaven was recognized. This was 
offset by a decrease in Food Coupon income of $7,500 resulting from the 
discontinuance of the bank issuing program by the Commonwealth of 
Massachusetts and decreases in Safe Deposit Rentals, income on Other Real 
Estate Owned properties and Rental Income of $8,000, $3,550 and $5,750 
respectively.

Total Other Expense for the first nine months in 1998 was down by $145,097 
to $6,698,307, from $6,843,404 recorded for the same period in 1997. 
Salaries and employees benefits were down by $15,717, despite general wage 
increases and increased cost of benefits, primarily due to the nonreplacement 
of individuals whose services with the Bank have been terminated. Occupancy 
and Equipment Expenses combined were down by $24,580 primarily due to a net 
reduction in depreciation costs realized on equipment that became fully 
depreciated during the latter part of 1997, which offset depreciation costs 
of newly obtained equipment.

A gain of $33,039 was incurred in the sale of real estate that was acquired 
by foreclosure, whereas during the same period in 1997, the Bank realized a 
loss on sale of other real estate of $27,166.

The following table sets forth the components of the line item Other 
Expense. This table reflects a decrease of $46,595 to $586,695 from $633,290 
for the three month period ending September 30, 1998, and a decrease of 
$38,146 to $1,730,539 from $1,768,685 for the nine month period ending 
September 30, 1998.

<TABLE>
<CAPTION>
                                     Third Quarter                  Nine Months
-----------------------------------------------------------------------------------------
Dollars in Thousands            1998     1997   Variance     1998       1997     Variance
-----------------------------------------------------------------------------------------

<S>                             <C>      <C>      <C>       <C>        <C>         <C>
Amortization of Goodwill        $ 57     $ 57     $  0      $  170     $  170      $  0
Advertising & Public Relations    97      110      (13)        296        308       (12)
Stationary & Supplies             56       69      (13)        171        245       (74)
Communications                    71       66        5         222        203        19
Professional fees &
 Other Services                   88      105      (17)        225        243       (18)
Other Miscellaneous Expenses     218      226       (8)        647        600        47
                                -------------------------------------------------------
      Other Expenses            $587     $633     $(46)     $1,731     $1,769      $(38)
                                =======================================================
</TABLE>

Stationary and Supplies had material decreases of $13,000 during the third 
quarter and $74,000 during the first nine months of 1998 compared to the 
previous year. These decreases are the result of bulk purchasing at 
discounted prices of supplies that will not become outdated, and an overall 
reduction of supply usage.

Other Miscellaneous Expenses decreased by $8,000 during the third quarter 
and increased by $47,000 for the nine month period in 1998, when compared to 
the prior year. There were increases attributable to directors fees, due to the 
expansion of the Board of Directors that occurred in the last quarter of 
1997; and the expense associated with the purchase of the single premium 
life insurance policies that occurred in January 1998, which provide each 
member of the Board of Directors with a supplementary life insurance 
benefit. This cost will decrease annually until policy year 2000, when the 
cash surrender value of the policies is expected to realize income. 
Committee fees were up by $3,900 and $13,700 for three and nine months 
respectively, when compared to the previous year; and life insurance expense 
incurred costs of $25,500 and $68,000 respectively, for the three month 
period and nine month period ending September 30, 1998. These increases were 
offset by decreases in FDIC assessments of $19,290 and $28,400 and 
decreases in Other Real Estate Owned expenses of $5,000 and $22,500 for the 
three and nine months respectively when compared to the previous year.

Income before income taxes for the nine month period ending September 30, 
1998 was $4,317,553, up by $874,094 from $3,443,459 reported as of September 
30, 1997.  Applicable income taxes for the nine month period ending 
September 30, 1998 were $1,708,504, an increase of $328,001 when compared to 
$1,380,503 expensed in the same period of the prior year.  Net earnings were
$2,609,049, up by $546,093 or 26.5%, when compared to $2,062,956 reported for
nine months in the previous year.  Earnings per share on a fully diluted basis
was $0.77 for nine months ending September 30, 1998 compared to $0.66 reported
at September 30, 1997.

The results of operation for the third quarter in 1998 indicate that net 
interest income was up by $217,259 to $3,585,658 from $3,368,399 earned 
during the same period in the previous year.  The provision for loan losses 
remained the same as incurred during the third quarter in 1997.  Total Other 
Income increased by $107,342 of which a decrease of $6,462 occurred in 
service charges on deposit accounts.  This decrease was directly related to 
the "no service charge" product previously mentioned.  Various corporate 
equities were sold during the third quarter realizing gains of $197,901.  
During the same period in the prior year, gains on sales of securities 
totaled $83,315.

Other Income decreased by $782 for the third quarter in 1998 when compared 
to the third quarter in 1997.  This decrease was due to normal business 
activity.

Total Other Expense decreased by $115,192 to $2,259,940 for the three month 
period ending September 30, 1998 compared to $2,375,132 reported for the 
third quarter in 1997.

An increase of $20,358 occurred in Salaries and Employee Benefits due to the 
addition to staff in anticipation of the openings of the new Fall River and 
New Bedford branches in late 1998 to early 1999.  Occupancy and Equipment 
Expense combined decreased by $11,740 due to equipment still being utilized 
which became fully depreciated during 1997 and the first quarter of 1998.  A 
gain on sale of foreclosed property of $33,275 occurred during the third 
quarter in 1998 compared to a loss on sale of foreclosed property of $33,491 
in the same period in 1997.

The line item Other Expense is detailed in the aforementioned chart and, as 
noted, significant variances occurred in stationery and supplies, and other 
miscellaneous expenses which reflect fees and insurance costs relating to 
the directors.

Income before taxes for the third quarter in 1998 was up by $439,793 to 
$1,654,593 from $1,214,800 reported for the same period in the prior year.  
Applicable income taxes increased by $168,566 to $654,951 when compared to 
$486,385 reported in the third quarter in 1997.

The net income for the three month period ending September 30, 1998 was 
$999,642, up by $271,227 or 23.4%, when compared to $728,415 earned in the 
third quarter in 1997.  Diluted earnings per share for the third quarter in 
1998 were $0.29 compared to $0.22 for the same period in 1997.

YEAR 2000 COMPLIANCE

The approaching Year 2000 presents companies in all industries with a myriad 
of challenges including the ongoing operation of their data systems to check 
proper interpretation of calendar year digits and resulting calculations.  
To meet these challenges, the Company has completed an assessment of Year 
2000 issues, developed a plan to resolve these issues, and commenced the 
implementation of changes and testing required to achieve compliance.

The Company is on schedule to complete changes and testing of essential 
systems by March 31, 1999 utilizing both internal and external resources.  
Essential systems have been identified as the applications for processing 
depositors' and borrower' accounts, stockholder information, origination and 
receiving of electronic charges and credits (ACH items), general ledger 
processing and the PC network system, including the teller system.  The 
first stage of testing has been completed on the depositor and borrower 
applications and the general ledger system.  Phases two, three and four are 
scheduled to be completed by early December 1998.  In September 1998, the 
Company replaced the existing stockholder software with Year 2000 compatible 
software at a cost of approximately $20,000.00.  This conversion had been 
anticipated prior to any Year 2000 planning and would have occurred 
regardless of this requirement.  The first phase of testing on the Federal 
Reserve Bank's fedline system, which provides the Company the ability to 
perform various operations including originating and receiving ACH items, 
performing wire transfers and purchasing securities, was completed 
successfully in October 1998.  The second and final phase of testing is 
scheduled for November 1998.  The necessary upgrade to the teller system is 
scheduled to be completed and tested by December 1998.  The testing of non-
essential applications will continue throughout 1999 and will be completed 
prior to any impact non-compliance may have on operations.

Key vendors and customers have been identified and contacted to determine 
any vulnerability the Company may have due to the failure of these parties 
to remedy their own Year 2000 issues.  The above mentioned testing has been 
performed using the resources of the key vendors and the Company's own 
internal resources.  To the extent that key vendors, customers or other 
general suppliers, not affiliated with the Company, such as communications 
and electric suppliers, are unsuccessful in properly addressing the Year 
2000 issue, the Company could possibly be negatively impacted.  

Although the Company does not anticipate any system to be non-compliant, 
should a problem arise with a key vendor, customer or general supplier, the 
Company is finalizing a contingency plan to deal with these issues.  It is 
impossible at this time to determine what effect this could have on the 
Company's operations, liquidity and financial condition.

The total cost of the Year 2000 project is estimated at $40,000 to $50,000. 
These costs are not expected to be material to the Company's operations, 
liquidity and financial condition.  The Company has incurred no Year 2000 
related expenses during the first nine months of 1998.  These estimated 
costs are based upon management's best estimates which have been derived 
from numerous assumptions of future events which include the availability of 
certain resources, third party modification plans and other factors.  
However, there is no guarantee that these estimates will hold true and 
actual results could differ from those anticipated.

The Federal Deposit Insurance Corporation (FDIC) has established Year 2000 
standards for safety and soundness consistent with the Federal Financial 
Institutions Examination Council (FFIEC) guidance papers describing certain 
essential steps that each FDIC-supervised financial institution must take to 
become Year 2000 ready.  There is ongoing regulatory oversight by the FDIC 
of all insured financial institutions, including the Company, concerning 
Year 2000 compliance.

LIQUIDITY

The Company's principal sources of funds are customer deposits, loan 
amortization, loan payoffs, and the maturities of investment securities.  
Through these sources, funds are provided for customer withdrawals from 
their deposit accounts, loan originations, draw-downs on loan commitments, 
acquisition of investment securities and other normal business activities.  
Investors' capital also provides a source of funding.

The largest source of funds is provided by depositors.  The largest 
component of the Company's deposit base is reflected in the Time Deposit 
category.  The Company does not participate in brokered deposits.  Deposits 
are obtained from consumers and commercial customers within the Bank's 
community reinvestment area, being Bristol County, Massachusetts and several 
abutting towns in Rhode Island.

The Company also has the ability to borrow funds for liquidity purposes from 
correspondent banks, the Federal Home Loan Bank, as well as the Federal 
Reserve Bank of Boston by pledging various investment  securities as 
collateral.  The Company did not have the need to borrow for liquidity 
purposes in 1997 nor during the first nine months in the current year.  Tax 
payments made by our customers which are owed to the Federal Reserve Bank 
Treasury Tax and Loan account are classified as Short Term borrowings.  The 
Notes Payable represents a note due Fleet Bank.  The note is attributable to 
Fairbank, Inc. and was assumed at the time of the merger.  It has a final 
maturity in November, 1999.  Due to the applicable prepayment fees, it is 
advantageous for the Bank to continue with the applicable terms of the note. 
There is also a $1,741,395 borrowing from the Federal Home Loan Bank 
included in Notes Payable representing the match funding program that is 
available to qualified borrowers.

Excess available funds are invested on a daily basis as Federal Funds Sold 
and can be withdrawn daily.  The Bank attempts through its cash management 
strategies to maintain a minimum level of Federal Funds Sold to further 
enhance its liquidity.

Liquidity represents the ability of the Bank to meet its funding 
requirements.  In assessing the appropriate level of liquidity, the Bank 
considers deposit levels, lending requirements, and investment maturities in 
light of prevailing economic conditions.  Through this assessment, the Bank 
manages its liquidity level to optimize earnings and respond to fluctuations 
in customer borrowing needs.

At September 30, 1998, the Bank's liquidity ratio stood at 28.6% as compared 
to 24.5% at December 31, 1997.  The liquidity ratio is determined by 
dividing the Bank's short term assets (cash and due from banks, interest 
bearing deposits due from other banks, securities, and federal funds sold) 
by the Bank's total deposits.  Management believes the Bank's liquidity to 
be adequate to meet the current and presently foreseeable needs of the Bank.

The comparison of cash flows for the nine months ending September 30, 1998 
and 1997 shows a decrease in the net cash provided by operating activities 
of $0.9 Million.  This is largely attributable to the increase in other 
assets which includes the aforementioned $1.6 Million of single premium life 
insurance policies.

Cash flows from investing activities show a net decrease in cash used in 
investing activities of $1.2 Million when compared to 1997.  Purchases of 
securities increased by $14.6 Million offset by an increase in maturities of 
securities of $5.6 Million when compared to the same nine months in 1997.  
There was a decrease in cash used in loan activity of $11.6 Million when 
compared to 1997.  This decrease includes approximately $16.0 Million in 
loans that have transferred to other institutions offering rates and 
underwriting criteria the Company did not feel was prudent to match.  
Capital expenditures increased by $1.0 Million due to the purchase of the 
New Bedford and Fall River properties.

Cash provided by financing activities increased $11.5 Million during the 
first nine months of 1998 when compared to the same period in 1997.  The 
change in cash provided by time deposits represented $6.3 Million of the 
increase.  There were also increases in cash provided by demand, NOW, money 
market and savings accounts of $8.7 Million and notes payable of $1.3 
Million.  These were offset by decreases of $3.7 Million in proceeds from 
issuance of stock and $1.0 Million in short term borrowings.  There was a 
new offering of common stock from  mid May to mid June 1997 which resulted 
in $3.9 Million in cash provided by proceeds from issuance of that stock for 
the first nine months of 1997.  There was no new offering in 1998.

CAPITAL

As of September 30, 1998, the Company had total capital of $28,951,274.  
This represents an increase of $2,514,848 from $26,436,426 reported on 
December 31, 1997.  The increase in capital was a combination of several 
factors.  Additions consisted of nine months earnings of $2,609,050 and 
transactions originating through the Dividend Reinvestment Program whereby 
10,307.941 shares were issued for cash contributions of $174,648 and 
15,084.766 shares were issued for $257,130 in lieu of cash dividend 
payments.  Stock options were exercised for proceeds of $37,815.  These 
additions were offset by dividends paid of $546,802.

Also, affecting capital is the adjustment that reflects net unrealized gains 
or losses, net of taxes,  on securities classified as Available for Sale.  
On December 31, 1997 the Available for Sale portfolio had unrealized gains, 
net of taxes, of $149,287, and on September 30, 1998, as a result of current 
market values, the portfolio reflects unrealized gains, net of taxes, of 
$140,411.

Under the requirements for Risk Based and Leverage Capital of the federal 
banking agencies, a minimum level of capital will vary among banks based on 
safety and soundness of operations.  Risk Based Capital ratios are 
calculated with reference to risk-weighted assets, which include both on and 
off balance sheet exposure.  At December 31, 1993, the minimum regulatory 
capital level for Risk Based Capital was 4.0% for Tier 1 capital, 8.0% for 
total capital, and 4.0% for Leverage Capital (Tier 1 as a percentage of 
total assets).

At September 30, 1998 the actual Risk Based Capital of the Bank was 
$23,558,000 for Tier 1 Capital, exceeding the minimum requirements of 
$8,940,680 by $14,617,320. Total Capital of $26,365,000 exceeded the minimum 
requirements of $17,881,360 by $8,483,640 and Leverage Capital of 
$23,558,000 exceeded the minimum requirements of $12,539,720 by $11,018,280. 
 In  addition to the "minimum" capital requirements, "well capitalized" 
standards have also been established by the Federal Banking Regulators.

The table below illustrates the capital ratios of the Company and the Bank 
on September 30, 1998 and at December 31, 1997.

<TABLE>
<CAPTION>
                                            Well      September 30, 1998    December 31, 1997
                                         Capitalized  ---------------------------------------
                                         Requirement  Bancorp      Bank     Bancorp      Bank
                                         ----------------------------------------------------

<S>                                           <C>      <C>        <C>        <C>        <C>
Total Capital (to Risk Weighted Assets)       10%      12.81%     11.80%     12.04%     11.18%
Tier I Capital (to Risk Weighted Assets)       6%      11.56%     10.54%     10.74%      9.88%
Leverage Capital (to Average Assets)           5%       8.21%      7.51%      7.79%      7.18%
</TABLE>

                                   PART II
                              OTHER INFORMATION

ITEM 6

Exhibits and Reports on Form 8-K 

(a)  Exhibits:  See exhibit index

(b)  Reports on Form 8-K: None  


                                EXHIBIT INDEX

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

    27          Financial Data Schedule


                                 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.

                                       SLADE'S FERRY BANCORP
                                       (Registrant)


November 9, 1998                       /s/ Kenneth R. Rezendes
(Date)                                 (Signature)  Kenneth R. Rezendes
                                                    President/CEO


November 9, 1998                       /s/ James D. Carey  
(Date)                                 (Signature)  James D. Carey
                                                    Executive Vice President


November 9, 1998                      /s/ Ralph S. Borges
(Date)                                (Signature)  Ralph S. Borges
                                                   Treasurer
                                                   Chief Financial Officer
                                                   Chief Accounting Officer