FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                   OF THE SECURITIES AND EXCHANGE ACT OF 1934

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities  Exchange
Act of 1934.

For the period ended                  June 30, 1998
                    -------------------------------------------------------

Commission File Number:     0-5893

                             American Bancorporation
             (Exact name of registrant as specified in its charter)

            Ohio                                         31-0724349
  (State or other jurisdiction of                     (I.R.S. Employer
  incorporation or organization)                     Identification No.)

  1025 Main Street, Suite 800, Wheeling, WV                 26003
  (Address of principal executive offices)                (Zip Code)

                                 (304) 233-5006
              (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.

         July 3, 1998: 3,129,674 shares of Common stock without par value


                                                      Number of pages comprising
                                                this report. . . . . . . . .  13

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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998




TABLE OF CONTENTS

Part I   FINANCIAL INFORMATION
Item  1  Financial Statements
          Condensed Consolidated Balance Sheet..........................       3
          Condensed Consolidated Statement of Income....................       4
          Condensed Consolidated Statement of
                    Cash Flows..........................................       5
          Condensed Consolidated Statement of
                    Changes in Stockholders' Equity.....................       6
          Notes to the Financial Statements.............................       6
Item  2   Management's Discussion and Analysis of Financial
          Condition and Results of Operations...........................       7
Item 3    Quantitative and Qualitative Disclosures about Market Risk....      12


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............................    12
Item  5   Other Information...............................................  None
Item  6   Exhibits and Reports on Form 8-K................................  None

SIGNATURES  ............................................................      13







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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998

                    American Bancorporation and Subsidiaries

<TABLE>
<CAPTION>

CONSOLIDATED BALANCE SHEET

                                                                                June 30,                     December 31,
                                                                         1998                1997               1997
<S>                                                              <C>                   <C>                 <C>
                                                                 ----------------      ---------------      -------------
ASSETS
Cash and due from banks........................................... $  13,568,912         $ 12,905,782      $  11,027,692
Interest bearing deposits in other banks.......................          145,488                    -                  -
Federal funds sold..............................................      16,050,025              904,417          2,414,812
Investment securities available for sale..........................   214,865,641          157,152,101        169,175,987
Loans, net of unearned income....................................    289,814,672          280,247,511        286,691,051
  Less allowance for loan losses...............................        3,179,566            3,555,330          3,284,338
                                                                 ---------------      ---------------    ---------------
                                                                     286,635,106          276,692,181        283,406,713
Premises and equipment - net....................................       9,854,463           10,080,749         10,070,377
Accrued interest receivable.....................................       2,902,199            3,150,834          2,713,240
Excess of cost over net assets purchased.......................        1,801,202            2,136,678          1,968,940
Other assets...................................................        5,354,541            4,854,866          3,828,711
                                                                 ---------------      ---------------    ---------------
     TOTAL ASSETS.................................................. $551,177,577         $467,877,608       $484,606,472
                                                                    ============         ============       ============

LIABILITIES
 Deposits
   Non-interest bearing..........................................  $  35,818,702        $  33,923,814      $  33,512,712
   Interest bearing..............................................    376,773,483          301,646,375        322,221,620
                                                                   -------------         ------------       ------------
       TOTAL DEPOSITS............................................    412,592,185          335,570,189        355,734,332
 Short-term borrowings...........................................     84,096,093           93,166,616         87,574,152
 Accrued interest payable......................................        2,272,457            1,626,358          1,782,668
 Other liabilities.............................................        4,391,546            5,124,757          4,396,674
 Long-term debt..................................................     12,668,179              930,835          1,424,800
                                                                   -------------      ---------------      -------------
    TOTAL LIABILITIES............................................    516,020,460          436,418,755        450,912,626

STOCKHOLDERS' EQUITY
  Preferred stock........................................                      -                    -                  -
  Common stock without par value, stated value $5,
   authorized 6,500,000 shares, issued and
   outstanding 3,129,674.......................................        7,824,185            7,824,185          7,824,185
  Additional paid-in capital....................................      10,301,982           10,301,982         10,301,982
  Retained earnings.............................................      16,676,372           13,354,283         14,965,228
 Accumulated other comprehensive income,
      net of income tax.......................................           354,578             (21,597)            602,451
                                                                ----------------   -----------------    ----------------
    TOTAL STOCKHOLDERS' EQUITY..................................      35,157,117           31,458,853         33,693,846
                                                                  --------------       --------------     --------------
    TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY................................. $551,177,577         $467,877,608       $484,606,472
                                                                    ============         ============       ============

</TABLE>


                                        3

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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998
<TABLE>
<CAPTION>


                                                                   American Bancorporation and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

                                                                    Quarter ended June 30,          Six Months ended June 30,
                                                                  1998              1997             1998              1997

<S>                                                         <C>                <C>            <C>                 <C>
                                                            ----------------   -------------- ----------------    -------------
INTEREST INCOME
 Loans......................................................   $ 6,377,452       $ 6,131,933      $12,683,363       $12,106,887
 Investment securities
  Taxable interest income...................................     3,324,760         2,445,226        6,242,487         4,998,030
  Non-taxable interest income.............................          23,243            23,153           46,014            47,354
                                                            --------------    --------------  ---------------   ---------------
                                                                 3,348,003         2,468,379        6,288,501         5,045,384
 Short-term investments...................................         248,639            71,117          330,084           180,833
                                                             -------------    --------------   --------------    --------------
   Total interest income...................................      9,974,094         8,671,429       19,301,948        17,333,104

INTEREST EXPENSE
 Deposits...................................................     4,321,546         3,179,451        8,164,638         6,121,188
 Borrowed funds............................................      1,442,842         1,194,459        2,664,278         2,611,169
                                                              ------------      ------------    -------------     -------------
   Total interest expense..................................      5,764,388         4,373,910       10,828,916         8,732,357
                                                              ------------      ------------     ------------     -------------
     NET INTEREST INCOME....................................     4,209,706         4,297,519        8,473,032         8,600,747
PROVISION FOR LOAN LOSSES.................................          60,000                 -          120,000                 -
                                                            ---------------------------------  ----------------------------------
 Net interest income after
    provision for loan losses..............................      4,149,706         4,297,519        8,353,032         8,600,747
OTHER INCOME
 Service charges on deposit accounts.......................        172,922           185,895          339,902           373,246
 Securities gains..........................................        330,809                 -          486,809             4,337
 Net gains on sale of loans................................        474,064           294,501          933,119           508,872
 Insurance commissions...................................           23,282            25,617           43,430            48,997
 Other income.............................................         193,403           196,407          387,634           356,368
                                                             -------------     -------------    -------------    --------------
   Total other income......................................      1,194,480           702,420        2,190,894         1,291,820
OTHER EXPENSE
 Salaries and employee benefits............................      1,594,150         1,439,747        3,189,265         2,853,240
 Occupancy and equipment expense...........................        617,496           610,645        1,198,451         1,197,377
 Other expenses............................................      1,374,983         1,222,144        2,590,689         2,476,041
                                                              ------------      ------------    -------------     -------------
   Total other expense.....................................      3,586,629         3,272,536        6,978,405         6,526,658
                                                              ------------      ------------    -------------     -------------
INCOME BEFORE INCOME TAXES..................................     1,757,557         1,727,403        3,565,521         3,365,909
PROVISION FOR INCOME TAXES................................         470,556           641,961        1,025,013         1,250,465
                                                             -------------     -------------    -------------     -------------
NET INCOME..................................................   $ 1,287,001       $ 1,085,442     $  2,540,508      $  2,115,444
                                                               ===========       ===========     ============      ============


  Average Shares Outstanding.............................        3,129,674         3,129,674        3,129,674         3,129,674

    BASIC EARNINGS PER SHARE...........................        $      0.41       $      0.35     $       0.81      $       0.68

</TABLE>



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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998
<TABLE>
<CAPTION>


                                                                       American Bancorporation and Subsidiaries

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                                    Six months ended June 30,
                                                                                       1998             1997

<S>                                                                              <C>              <C>
                                                                                 -------------    -------------
  Operating Activities:
   Net Income ................................................................   $   2,540,508    $   2,115,444
   Adjustments to reconcile net income to net cash from operating activities:
  Depreciation ...............................................................         418,804          389,888
  Amortization of intangibles ................................................         167,738          167,738
  Net amortization of investment securities ..................................         376,701          138,400
  Provision for loan losses ..................................................         120,000                -
  Net loss on sale of investment securities ..................................        (486,809)          (4,337)
  Net gain on sale of loans ..................................................        (933,119)        (508,872)
  Change in assets and  liabilities net of effects from the purchase of branch
     assets:
  Net increase in accrued interest receivable ................................        (188,959)        (165,512)
  Net increase in accrued interest payable ...................................         489,789          137,359
  Net (increase) decrease in other assets ....................................        (575,478)       1,165,646
  Net increase in other liabilities ..........................................         169,509          297,749
  Net decrease from other operating activities ...............................        (184,441)         (39,774)
                                                                                 -------------    -------------
        Net cash provided by operating activities ............................       1,914,243        3,693,729
Investing Activities:
  Investment securities available for sale:
      Proceeds from maturities and repayments ................................      70,163,289        6,494,608
      Proceeds from sales ....................................................       5,886,214       44,062,484
      Purchases ..............................................................    (122,098,505)     (64,864,425)
   Net decrease in loans .....................................................      (2,415,275)      (8,297,250)
   Purchase of premises and equipment ........................................        (203,890)        (739,757)
   Proceeds from sale of premises and equipment ..............................           1,000                -
                                                                                 -------------      ------------
       Net cash used by investing activities .................................     (48,667,167)     (23,344,340)
Financing Activities:
   Net increase (decrease) in non-interest
      bearing demand deposits ................................................       2,305,990       (2,820,502)
   Net increase (decrease) in interest bearing
       demand and savings deposits ...........................................         201,300       (2,862,283)
   Net increase in time deposits .............................................      54,350,563       21,442,156
   Net decrease in short-term borrowings .....................................      (3,478,059)     (10,929,427)
   Principal repayment of long-term debt .....................................      (2,406,621)          (6,848)
   Proceeds from issuance of long-term debt ..................................      12,884,091                -
   Cash dividends paid .......................................................        (782,419)        (782,419)
                                                                                 -------------    -------------
        Net cash provided by financing activities ............................      63,074,845        4,040,677
                                                                                 -------------    -------------
  Net Increase (Decrease) in Cash and Cash Equivalents .......................      16,321,921      (15,609,934)

Cash and Cash Equivalents Beginning Balance ..................................      13,442,504       29,420,133
                                                                                 -------------    -------------
Cash and Cash Equivalents Ending Balance .....................................   $  29,764,425    $  13,810,199
                                                                                 =============    =============

</TABLE>


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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998



                                       American Bancorporation and Subsidiaries

CONSOLIDATED  STATEMENT OF  STOCKHOLDERS'  EQUITY 
Six months ended June 30, 1998 and 1997

                                                  1998             1997
                                              ------------    ------------
Balance at January 1, .....................   $ 33,693,846    $ 30,422,694
 Net Income ...............................      2,540,508       2,115,444
 Dividends declared ($0.265 per share 1998,
      $0.25 per share 1997) ...............       (829,364)       (782,419)
 Other comprehensive loss .................       (247,873)       (296,866)
                                              ------------    ------------
Balance at June 30, .......................   $ 35,157,117    $ 31,458,853
                                              ============    ============




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     The unaudited interim condensed  consolidated  financial statements reflect
all  adjustments  which,  in the opinion of management,  are necessary to a fair
presentation  of  the  financial   position  and  results  of  operations.   All
adjustments  are of a  normal  recurring  nature.  The  notes  to the  financial
statements contained in the 1997 Annual Report to Stockholders should be read in
conjunction with these statements.

NOTE A - ADOPTION OF FINANCIAL ACCOUNTING STANDARDS

     On January 1, 1998 the Company  adopted  Statement of Financial  Accounting
Standards ("SFAS") No. 129, "Disclosure of Information about Capital Structure."
SFAS No. 129 summarizes  previously  issued disclosure  guidance  contained with
Accounting  Principles  Board ("APB") Opinion Nos. 10 and 15 as well as SFAS No.
47. There were no material changes to the Company's  disclosures pursuant to the
adoption of SFAS No. 129.

     On  January  1,  1998  the  Company   adopted  SFAS  No.  130,   "Reporting
Comprehensive  Income".  SFAS No. 130  established  standards  for reporting and
display  of  comprehensive  income and its  components  in a full set of general
purpose financial statements.  Comprehensive income is defined as "the change in
equity of a business  enterprise  during a period  from  transactions  and other
events and  circumstances  from  nonowner  sources.  It includes  all changes in
equity during a period except those  resulting  from  investments  by owners and
distributions to owners." The comprehensive income and related cumulative equity
impact of comprehensive income items is required to be disclosed  prominently as
part of the notes to the  financial  statements.  Only the impact of  unrealized
gains or losses on  securities  available for sale is disclosed as an additional
component of the Company's income under the requirements of SFAS No. 130.



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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998

<TABLE>
<CAPTION>


     Amounts  included  in  comprehensive  income are as follows for the quarter
ended June 30,  1998 and 1997 and the six months  ended June 30,  1998 and 1997,
respectively:



                                                        Quarter ended          Six months ended
                                                           June 30,                June 30,
                                                    -----------------------  ---------------------
                                                       1998        1997       1998       1997
                                                    ----------- ----------- ---------- -----------

<S>                                                <C>          <C>        <C>          <C>

Net Income     ..................................$   1,287,001  $1,085,442  $2,540,508 $2,115,444
Other comprehensive income (loss),  net of tax
 Unrealized gains (losses) on securities:
   Unrealized holding gain (loss)
   arising during the period..............            (316,166)    714,164    (79,172)    (45,490)
  Reclassification adjustment for
   gains included in net income.............          (122,201)          -   (168,701)   (251,376)
                                                   ------------  ---------- ---------- -----------
Other comprehensive income (loss)...............      (438,367)    714,164   (247,873)   (296,866)
                                                   ------------  ---------- ---------- -----------
Comprehensive income    ........................$      848,634  $1,799,606  $2,292,635  $1,818,578
                                                   ============  ========== ==========  ==========


</TABLE>

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


INTRODUCTION
     The discussion and analysis, when read in conjunction with the consolidated
financial  statements and accompanying notes, is designed to provide information
relevant to an assessment of financial  performance and management's  perception
of significant events.

     The following is a discussion of significant factors influencing  operating
performance  and  change  in  financial  position  during  the  interim  periods
presented.  The  discussion  should be read in  connection  with the 1997 Annual
Report and the financial statements appearing elsewhere herein.


SUMMARY
     American Bancorporation (the "Company") recognized net income of $2,541,000
or $0.81  basic  earnings  per share,  for the six months  ended June 30,  1998,
compared to net income of $2,115,000 or $0.68 basic earnings per share,  for the
six months ended June 30, 1997.  Return on average  assets and return on average
equity were 0.97% and 14.61%,  respectively,  for the six months  ended June 30,
1998 compared to 0.92% and 13.77%,  respectively,  for the six months ended June
30, 1997.

     Total assets at June 30, 1998 increased to $551,178,000,  from $467,878,000
at June 30, 1997, an increase of 17.8%.  Deposits  increased to  $412,592,000 at
June 30, 1998, from  $335,570,000 at June 30, 1997, an increase of 23.0%.  Total
stockholders' equity was $35,157,000 at June 30, 1998, which represents an 11.8%
increase over total stockholders' equity of $31,459,000 at June 30, 1997.


                                        7

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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998


RESULTS OF OPERATIONS
       SIX MONTH COMPARISON

     Net Income.  Net income for the six months ended June 30, 1998  amounted to
$2,541,000,  or $0.81  basic  earnings  per  share,  compared  to net  income of
$2,115,000 or $0.68 basic earnings per share,  for the six months ended June 30,
1997.  The  increase  was the result of an  increase in other  income  which was
partially  offset by increases in other  expenses and  provision for loan losses
and a decrease in net interest income.

     Net Interest  Income.  Net interest income before provision for loan losses
for the six months  ended June 30, 1998  amounted to  $8,473,000,  a decrease of
$128,000 or 1.5%,  compared to the six months ended June 30, 1997.  The decrease
resulted  primarily from a 57 basis point decrease in the Company's margin which
was partially  offset by a  $64,481,000  or 14.9%  increase in average  interest
earning assets.

     Total  interest  income for the six months ended June 30, 1998  amounted to
$19,302,000 an increase of $1,969,000 or 11.4%, compared to the six months ended
June 30, 1997. The increase resulted  primarily from the increase in the average
interest  earning assets which was partially offset by a 24 basis point decrease
in the average  yield on earning  assets.  Average loans  outstanding  increased
$11,111,000 or 4.0% with average commercial loans increasing $5,506,000 or 6.1%,
average real estate loans  increasing  $3,854,000  or 2.8% and average  consumer
installment  loans  increasing  $1,751,000  or 3.6%,  primarily due to increased
demand.  The  average  yield on loans  increased  from 8.74% in 1997 to 8.80% in
1998. Average investment securities and other short-term investments outstanding
increased  $53,370,000 or 34.4% while the average yield  decreased from 6.75% in
1997 to 6.35% in 1998.

     Total  interest  expense for the six months ended June 30, 1998 amounted to
$10,829,000,  an  increase of  $2,097,000  or 24.0% , compared to the six months
ended June 30, 1997. The increase resulted primarily from a $58,541,000 or 15.0%
increase in the average volume of interest  bearing  liabilities  and a 36 basis
point  increase in interest rates paid on such  liabilities.  Average NOW, money
market and savings accounts decreased  $5,032,000 or 4.0%. Average time deposits
increased  $63,701,000  or 37.7%,  primarily  the result of increased  marketing
efforts.  Average  noninterest  bearing accounts  increased $400,000 or 1.2% and
represented  8.7% of average  total  deposits  for the six months ended June 30,
1998. Average  short-term  borrowings  decreased  $6,507,000 or 6.8% , while the
average rate paid on short-term borrowings increased from 5.38% in 1997 to 5.40%
in 1998.

     Provision for Loan Losses. The loan loss provision for the six months ended
June 30, 1998 was $120,000.  There was no loan loss provision for the six months
ended June 30, 1997.

     Other Income.  Other income for the six months ended June 30, 1998 amounted
to  $2,191,000,  an increase  of  $899,000 or 69.6%.  Net gains on sale of loans
increased $424,000 or 83.4%, the result of increased  residential mortgage loans
generated  for sale to  secondary  markets  by the  Company's  mortgage  banking
operations. Net gain on sale of investment securities totalled $487,000 in 1998,
compared to $4,000 in 1997.




                                        8

<PAGE>


AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998

     Other  Expense.  Total other expense for the six months ended June 30, 1998
amounted to  $6,978,000,  an  increase of $452,000 or 6.9%,  compared to the six
months ended June 30, 1997. Salaries and employee benefits increased $336,000 or
11.8%.   Occupancy  and  equipment  expense  were  virtually  unchanged.   Other
(miscellaneous) expenses increased $115,000 or 4.6%.

     Provision  for Income  Taxes.  The  provision  for income taxes for the six
months ended June 30, 1998 was  $1,025,000,  compared to $1,250,000  for the six
months ended June 30, 1997.


RESULTS OF OPERATIONS
     QUARTER COMPARISON

     Net  Income.  Net income for the quarter  ended June 30,  1998  amounted to
$1,287,000,  compared to net income of $1,085,000 for the quarter ended June 30,
1997.  The  increase  was the result of an  increase in other  income  which was
partially  offset by increases in other  expenses and  provision for loan losses
and a decrease in net interest income.

     Net Interest  Income.  Net interest income before provision for loan losses
for the  quarter  ended June 30,  1998  amounted  to  $4,210,000,  a decrease of
$88,000 or 2.0%,  compared  to the quarter  ended June 30,  1997.  The  decrease
resulted  primarily from a 76 basis point decrease in the Company's margin which
was partially  offset by a  $89,397,000  or 20.8%  increase in average  interest
earning assets.

     Total  interest  income for the  quarter  ended June 30,  1998  amounted to
$9,974,000,  an increase of $1,303,000 or 15.0% , compared to the same period in
1997. The increase resulted primarily from the increase in the average volume of
earning  assets which was partially  offset by a 39 basis point  decrease in the
average yield on earning assets. Average loans outstanding increased $11,900,000
or 4.3%. Average commercial loans increased $6,945,000 or 7.7%, average consumer
installment  loans  increased  $2,959,000  or 6.3% and average real estate loans
increased $1,997,000 or 1.4%. The average yield on loans decreased from 8.83% in
1997 to  8.81% in 1998.  Average  investment  securities  and  other  short-term
investments  outstanding  increased  $77,497,000  or 50.8% and the average yield
decreased from 6.66% in 1997 to 6.25% in 1998.

     Total  interest  expense  for the quarter  ended June 30, 1998  amounted to
$5,764,000,  an increase of $1,390,000  or 31.8%,  compared to the quarter ended
June 30, 1997.  The increase  resulted  primarily  from an  $84,482,000 or 21.8%
increase in the average volume of interest  bearing  liabilities  and a 37 basis
point increase in interest rates paid on such liabilities.

     Provision  for Loan Losses.  The loan loss  provision for the quarter ended
June 30,  1998 was  $60,000.  There was no loan loss  provision  for the quarter
ended June 30, 1997.

      Other Income.  Other income  amounted to $1,194,000  for the quarter ended
June 30,  1998,  compared to $702,000 for the quarter  ended June 30, 1997.  Net
gains  on sale  of  loans  increased  $180,000  or  61.0%.  Net  gain on sale of
investment  securities  totalled  $331,000 for the quarter  ended June 30, 1998.
There was no gain on the sale of  investment  securities  for the same period in
1997.



                                        9

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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998

     Other  Expense.  Total other  expense  for the quarter  ended June 30, 1998
amounted to  $3,587,000,  an increase of $314,000 or 9.6%,  compared to the same
period in 1997.  Salaries and  employee  benefits  increased  $154,000 or 10.7%.
Occupancy and equipment expense increased $7,000 or 1.1%. Other  (miscellaneous)
expenses increased $153,000 or 12.5%.

       Provision  for Income  Taxes.  The  provision  for  income  taxes for the
quarter ended June 30, 1998 was  $471,000,  compared to $642,000 for the quarter
ended June 30, 1997.


ASSET QUALITY

     Nonperforming  loans totalled $2,734,000 or 0.9% of total loans at June 30,
1998,  compared to $2,658,000 or 0.9% at December 31, 1997.  Nonperforming loans
at June 30, 1998  consisted  of  nonaccrual  loans  totalling  $822,000,  90 day
delinquent loans of $1,366,000,  and restructured  loans  aggregating  $546,000.
Other real estate held totalled $421,000 at June 30, 1998,  compared to $236,000
at December 31, 1997.

CAPITAL RESOURCES

       Stockholders' equity totalled $35,157,000 at June 30, 1998. The Company's
risk-based  capital ratio was 17.0%, of which 15.6%  constituted Tier 1 capital,
while the risk-based  capital ratio for the Company's bank subsidiary,  Wheeling
National  Bank,  was 14.4%,  with Tier 1 capital of 13.2%.  At June 30, 1998 the
Company's leverage capital ratio was 8.2%, while the leverage ratio for Wheeling
National Bank was 7.2%.


YEAR 2000 COMPLIANCE

     The Company is exposed to potential losses due to business  interruption or
errors  which could  result if any of its  computer  systems are not modified to
ensure that dates  beginning  in  January,  2000 are not  misinterpreted  by the
system as January,  1900. This is commonly  referred to as the Year 2000 Problem
("Y2K").  A number of computer systems which are affected by Y2K are utilized by
the  Company to operate  its  day-to-day  business.  Most of these  systems  use
software developed by and licensed from third party vendors,  some of which have
been customized by the Company, while others have been developed internally.

     Management has established a task force to identify all instances where the
Company is not  currently  Y2K  compliant,  and to ensure that those systems are
brought into compliance before the end of 1998. For software licensed from third
party vendors,  software  upgrades have either been received or are  forthcoming
from those vendors. The Company has begun testing for Y2K compliance.

     The Company has estimated that direct costs for Y2K compliance  will not be
material.

     Y2K  problems  which are  inherent  in the  regional,  national  and global
banking and payments system are expected to be brought into compliance,  but are
completely beyond the Company's control.



                                       10

<PAGE>


AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998
<TABLE>
<CAPTION>



                                                    Three months ended June 30,             Six months ended June 30,
                                                      1998                1997                1998               1997
                                                
                                                Average   Yield/    Average   Yield/    Average   Yield/   Average    Yield/
                                                Balance    Rate     Balance    Rate     Balance    Rate    Balance     Rate
INTEREST EARNING ASSETS                        (000's)             (000's)             (000's)            (000's)
<S>                                           <C>         <C>    <C>           <C>     <C>        <C>      <C>         <C>   
 
Loans
  Commercial................................    $  96,817  9.28%   $  89,872   9.33%   $  96,012   9.19%   $  90,506   9.12%
  Real estate...............................      142,859  8.28      140,862   8.06      142,384   8.30      138,530   8.03
  Installment-net..........................        50,025  8.44       47,067   8.82       49,753   8.43       48,002   8.84
                                               ----------         ----------          ----------          ----------
   Total loans   ...........................      289,701  8.81      277,801   8.83      288,149   8.80      277,038   8.74
 Investment securities
  Taxable...................................      214,007  6.21      149,391   6.55      197,626   6.32      150,484   6.64
  Tax-exempt...............................         1,143  8.13        1,119   8.28        1,116   8.25        1,149   8.25
                                              -----------        -----------         -----------         -----------
   Total investment securities   ...........      215,150  6.22      150,510   6.56      198,742   6.33      151,633   6.65
 Other short-term investments..............        14,974  6.64        2,117  13.43        9,591   6.88        3,330  10.86
                                               ----------        -----------         -----------         -----------
    Total interest earning assets.............   $519,825  7.67     $430,428   8.06     $496,482   7.78     $432,001   8.02
                                                 ========           ========            ========            ========
INTEREST BEARING LIABILITIES
  Deposits
   NOW, Savings and MMDA.....................   $121,565   2.70%    $125,943   2.65%    $120,847   2.67%    $125,879   2.64%
   Time......................................     246,101  5.69      173,880   5.39      232,449   5.64      168,748   5.29
                                                ---------          ---------           ---------           ---------
    Total deposits...........................     367,666  4.70      299,823   4.24      353,296   4.62      294,627   4.16
  Short-term borrowings.....................       92,475  5.35       87,573   5.36       89,121   5.40       95,628   5.38
  Long-term debt............................       12,669  6.51          932   8.79        7,312   7.00          933   8.38
                                               ----------       ------------         -----------        ------------
    Total interest
        bearing liabilities...................   $472,810  4.88     $388,328   4.51     $449,729   4.82     $391,188   4.46
                                                 ========           ========            ========            ========

MARGIN ANALYSIS
 (as a % of earning assets)
 Interest income....................                       7.67%               8.06%               7.78%               8.02%
 Interest expense....................                      4.43                4.06                4.37                4.04
                                                           ----                ----                ----                ----
 Net interest income................                      3.24%               4.00%               3.41%               3.98%
                                                           ====                ====                ====                ====

<FN>


Averages stated are month end average balances. Installment loans are stated net
of unearned  income.  Average  loans  include  nonaccrual  loans.  Yields do not
reflect tax equivalent adjustments.

</FN>
</TABLE>






                                       11

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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998


Item 3.   Quantitative and Qualitative Disclosures about Market Risk

            Quantitative  and  qualitative  disclosures  about  market  risk are
presented at December  31, 1997 in Item 7a. of the  Company's  Annual  Report on
Form 10-K, filed with the SEC on March 31, 1998.  Management believes there have
been no material changes in the Company's market risk since December 31, 1997.


Part II.   OTHER INFORMATION


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

            The Annual Meeting of  Shareholders  was held May 20, 1998.  Proxies
were solicited  pursuant to Regulation 14 of the 1934 Act. Shares represented in
person or by proxy totalled  1,379,493 or 44.08% of the shares then outstanding.
Shareholders approved by affirmative vote the following proposals:

            1.       To fix the number of  positions  for  director at 9, with 3
                     vacancies that may be filled by the Board of Directors:

                     Vote For: 1,367,532      Against: 9,900      Abstain: 2,061


            2.       To elect Jack O. Cartner and Paul W. Donahie  directors for
                     a three year term and to elect  Abigail  McCamic  Feinknopf
                     director for a one year term.

                                      Vote For      Vote Withheld       Abstain
   Jack O. Cartner                  1,371,557             7,936                0
   Paul W. Donahie                  1,371,573             7,920                0
   Abigail M. Feinknopf             1,371,245             8,248                0

          Continuing in the position of director were the following:

                                                                  Term Expiring
                Jay T. McCamic                                          1999
                Jeremy C. McCamic                                       2000
                Jolyon W. McCamic                                       2000


Item  6.  Exhibits and Reports on Form 8-K

         B. Reports on Form 8-K:

         Date                 Item             Description
         None


                                       12

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AMERICAN BANCORPORATION FORM 10-Q Quarterly Report
June 30, 1998


                                   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.

                                                         AMERICAN BANCORPORATION
                                                              (Registrant)
Date                                                      /s/ Jeremy C. McCamic
                                                         Jeremy C. McCamic
                                                         Chairman and
                                                         Chief Executive Officer


Date                                                       /s/ Brent E. Richmond
                                                          Brent E. Richmond
                                                          Chief Financial and
                                                          Accounting Officer











                                       13

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