FORM 10-QSB

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549

                                 (Mark One)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
      OF THE SECURITIES EXCHANGE ACT OF 1934
      FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999

      OR

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

For the transition period from _______________ to _______________

Commission File No.   0-23935

                    COLUMBIA FINANCIAL OF KENTUCKY, INC.
           (Exact name of registrant as specified in its charter)

                    Ohio                               61-1319175
      (State or other jurisdiction of              (I.R.S. Employer
       incorporation of organization)            Identification Number)

             2497 Dixie Highway
           Ft. Mitchell, Kentucky                      41017-3085
  (Address of principal executive office)              (Zip Code)

Registrant's telephone number, including area code:  (606) 331-2419

Check whether the Issuer (1) has filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act 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   [ ]

State the number of shares outstanding of each of the issuer's classes of 
common equity, as of the latest practicable date:  As of May 13, 1999, the 
latest practicable date, 2,660,950 common shares of the registrant, no par 
value, were issued and outstanding.

<PAGE>  1 of 15

                                    INDEX

                    COLUMBIA FINANCIAL OF KENTUCKY, INC.

                                                                     Page
                                                                     ----
PART I   -  FINANCIAL INFORMATION

            Consolidated Statements of Financial Condition             3
            Consolidated Statements of Income                          4
            Consolidated Statements of Cash Flows                      5
            Notes to Consolidated Financial Statements                 6
            Management's Discussion and Analysis of Financial
             Condition and Results of Operations                       8

PART II  -  OTHER INFORMATION                                         13

SIGNATURES                                                            15

<PAGE>  2 of 15

                    Columbia Financial of Kentucky, Inc.

               CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                   March 31,     Sept. 30,
                                                     1999          1998
                                                   ---------     ---------
                                            (In Thousands Except Share Data)

                       ASSETS
<S>                                                <C>           <C>
Cash and due from Banks                            $    647      $    631
Interest Bearing Deposits in Other Banks              6,660         5,629
                                                   ----------------------

      Total Cash and Cash Equivalents                 7,307         6,260

Investment Securities
  Held to Maturity, At Cost (Market Value of
   $17,563  and $19,148 at March 31, 1999 and
   September 30, 1998)                               16,971        18,980
  Available-for-Sale, At Market Value                 4,071         4,091
Mortgage-Backed Securities, At Cost (Market 
 Value of $22,141  and $22,604 at March 31, 1999
 and September 30, 1998)                             21,610        22,352
Loans Receivable, Net                                65,904        62,161
Interest Receivable                                     892           891
Premises and Equipment, Net                           1,577         1,625
Federal Home Loan Bank Stock, At Cost                 1,401         1,354
Deferred Federal Income Tax Asset                        94             -
Other Assets                                            139            86
                                                   ----------------------

      Total Assets                                 $119,966      $117,800
                                                   ======================

           LIABILITIES AND EQUITY
Liabilities
  Deposits                                         $ 81,524      $ 79,484
  Advances from Borrowers for Taxes 
   and Insurance                                        264           343
  Accrued Federal Income Tax Liability                   53             5
  Deferred Federal Income Tax Liability                 162           172
  Other Liabilities                                      52            78
                                                   ----------------------

      Total Liabilities                              82,055        80,082
                                                   ----------------------

Equity
  Preferred Stock (1,000,000 Shares, No 
   Par Value, Authorized, No Shares Issued 
   or Outstanding)                                        -             -
  Common Stock (6,000,000 Shares, No Par 
   Value, Authorized, 2,671,450 Issued, 
   2,660,950 at March 31, 1999 and 2,671,450 
   at September 30, 1998 Outstanding)                     -             -
  Treasury Stock (10,500 Shares at Cost)               (147)            -
  Additional Paid in Capital                         26,034        25,993
  Retained Earnings - Substantially Restricted       13,820        13,662
  Shares Acquired by Employee Stock Ownership
   Plan (ESOP)                                       (1,796)       (1,937)
                                                   ----------------------

      Total Equity                                   37,911        37,718
                                                   ----------------------

      Total Liabilities and Equity                 $119,966      $117,800
                                                   ======================
</TABLE>

<PAGE>  3 of 15

                    Columbia Financial of Kentucky, Inc.

                      CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                     Three Months             Six Months
                                    Ended March 31,         Ended March 31,
                                   ----------------        ----------------
                                   1999        1998        1999        1998
                                   ----        ----        ----        ----
                                       (In Thousands Except Share Data)

<S>                               <C>         <C>         <C>         <C>
Interest Income
  Loans                           $1,379      $1,337      $2,742      $2,685
  Mortgage-Backed Securities         337         298         681         577
  Investments                        340         245         699         493
  Interest-Bearing Deposits           70          77         135         134
                                  ------------------------------------------

      Total Interest Income        2,126       1,957       4,257       3,889
                                  ------------------------------------------

Interest Expense
  Deposits                           929       1,103       1,863       2,201

Net Interest Income                1,197         854       2,394       1,688
                                  ------------------------------------------

Provision for Losses on Loans          -           -           -          74
                                  ------------------------------------------

      Net Interest Income After
       Provision for Losses on
       Loans                       1,197         854       2,394       1,614
                                  ------------------------------------------

Non-Interest Income                   27          29          58          56
                                  ------------------------------------------

Non-Interest Expense
  Salaries and Employee Benefits     501         407         995         832
  Occupancy Expense of Premises       69          64         134         128
  Federal Deposit Insurance
   Premiums                           14          14          27          28
  Data Processing Services            30          31          54          59
  Advertising                         31          30          61          65
  Other                              203         108         377         249
                                  ------------------------------------------

      Total Non-Interest Expense     848         654       1,648       1,361
                                  ------------------------------------------

      Income Before Federal
       Income Tax Expense            376         229         804         309

Federal Income Tax Expense           128          76         273         103
                                  ------------------------------------------

      Net Income                  $  248      $  153      $  531      $  206
                                  ==========================================

      Comprehensive Income        $  248      $  153      $  531      $  206
                                  ==========================================

Earnings Per Share
  Basic                           $ 0.10         N/A      $ 0.21         N/A
                                  ======                  ======
  Diluted                         $ 0.10         N/A      $ 0.21         N/A
                                  ======                  ======
</TABLE>

<PAGE>  4 of 15

                    Columbia Financial of Kentucky, Inc.

                          STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                        Six Months Ended
                                                           March 31,
                                                       -----------------
                                                       1999         1998
                                                       ----         ----
                                                         (In Thousands)

<S>                                                  <C>          <C>
Cash Flows From Operating Activities
  Net Income                                         $   531      $   206
  Reconciliation of Net Income with
   Cash Flows from Operations
    Depreciation                                          54           61
    Provision for Losses on Loans                          -           74
    FHLB Stock Dividends                                 (47)         (46)
    Deferred Federal Income Tax Benefit                 (104)           -
  Changes In
    Interest Receivable                                   (1)         (42)
    Other Assets                                         (53)         (29)
    Federal Income Tax Receivable / Liability             48           58
    Other Liabilities                                    (26)         (24)
                                                     --------------------

      Net Cash Provided by Operating Activities          402          258
                                                     --------------------

Cash Flows From Investing Activities
  Investment Securities
    Purchased                                         (1,000)      (6,001)
    Matured                                            3,029        7,048
  Mortgage-Backed Securities
    Principal Collected                                  742           16
  Loan Originations and Repayments, Net                    -         (190)
  Deferred Conversion Costs                           (3,743)         163
  Purchases of Premises and Equipment                     (6)         (91)
                                                     --------------------

      Net Cash (Used) Provided by Investing
       Activities                                       (978)         945
                                                     --------------------

Cash Flows From Financing Activities
  Advances from Borrowers for
   Taxes and Insurance                                   (79)        (182)
  Change in Deposits                                   2,040       23,676
  Dividends Paid                                        (186)           -
  ESOP Shares Released                                    (5)           -
  Treasury Shares Acquired                              (147)           -
                                                     --------------------

      Net Cash Provided by Financing Activities
       by Financing Activities                         1,623       23,494
                                                     --------------------

      Change in Cash and Cash Equivalents              1,047       24,697

Beginning Balance, Cash and Cash Equivalents           6,260        6,827
                                                     --------------------

      Ending Balance, Cash and Cash Equivalents      $ 7,307      $31,524
                                                     ====================
</TABLE>

<PAGE>  5 of 15

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    COLUMBIA FINANCIAL OF KENTUCKY, INC.

               For the three-month and six-month periods ended
                           March 31, 1999 and 1998

1.    Basis of Presentation

      The accompanying unaudited financial statements were prepared in 
accordance with instructions for Form 10-QSB, and, therefore, do not include 
information or footnotes necessary for complete presentation of financial 
position, results of operations and cash flows in conformity with generally 
accepted accounting principles.  Accordingly, these financial statements 
should be read in conjunction with the consolidated financial statements and 
notes thereto of Columbia Federal Savings Bank for the year ended September 
30, 1998.  However, in the opinion of management, all adjustments 
(consisting of only normal recurring accruals) which are necessary for fair 
presentation of the consolidated financial statements have been included.  
The results of operations for the three-month and six-month periods ended 
March 31, 1999 and 1998 are not necessarily indicative of the results that 
may be expected for an entire fiscal year.

      The accompanying consolidated financial statements include the 
accounts of Columbia Financial of Kentucky, Inc. ("CFKY") and Columbia 
Federal Savings Bank ("Columbia Federal").   All significant intercompany 
items have been eliminated.

2.    Impact of Recent Accounting Standards

      In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive 
Income," which establishes standards for reporting and displaying 
comprehensive income and its components (revenues, expenses, gains and 
losses) in a full set of general-purpose financial statements.  SFAS No. 130 
requires that all items that are required to be recognized under accounting 
standards as components of comprehensive income be reported in a financial 
statement that is displayed with the same prominence as other financial 
statements and requires that an enterprise (a) classify items of other 
comprehensive income by their nature in a financial statement and (b) 
display the accumulated balance of other comprehensive income separately 
from retained earnings and additional paid-in capital in the equity section 
of the statement of financial position.  Under existing accounting 
standards, other comprehensive income shall be classified separately into 
foreign currency items, minimum pension liability adjustments and unrealized 
gains and losses on certain investments in debt and equity securities.  The 
provisions of SFAS No. 130 are effective for fiscal years beginning after 
December 15, 1997.  The adoption of SFAS No. 130 has not had a material 
impact on the disclosure requirements of CFKY.

3.    Consummation of the Conversion to a Stock Savings Bank

      On October 9, 1997, the Board of Directors of Columbia Federal 
unanimously adopted a Plan of Conversion to convert Columbia Federal from a 
federal mutual savings bank to a federal stock savings bank with the 
concurrent formation of a newly formed holding company, CFKY, incorporated 
under the laws of the State of Ohio.  The conversion was accomplished 
through the adoption of a Federal Stock Charter and Federal Stock Bylaws and 
the sale of CFKY's common shares in an amount equal to the pro forma market 
value of Columbia Federal after giving effect to the conversion.  A 
subscription offering of the shares of CFKY to Columbia Federal's members 
and to an employee stock benefit plan was conducted.

      The conversion was completed on April 15, 1998 and resulted in the 
issuance of 2,671,450 common shares of CFKY which, after consideration of 
offering expenses totaling approximately $775,000 and 213,716 shares 
allocated to the Columbia Federal of Kentucky, Inc. Employee Stock Ownership 
Plan (the "ESOP"), resulted in net proceeds of $23.8 million.

<PAGE>  6 of 15

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    COLUMBIA FINANCIAL OF KENTUCKY, INC.

      At the time of conversion, Columbia Federal established a liquidation 
account in an amount equal to its regulatory capital as of September 30, 
1997.  The liquidation account will be maintained for the benefit of 
eligible depositors who continue to maintain their accounts at Columbia 
Federal after the conversion.  The liquidation account will be reduced 
annually to the extent eligible depositors have reduced their qualifying 
deposits.  Subsequent increases in deposits will not restore an eligible 
account holder's interest in the liquidation account.  In the event of 
complete liquidation, and only in such event, each eligible depositor will 
be entitled to receive a distribution from the liquidation account in an 
amount proportionate to the current adjusted qualifying balances for 
accounts then held. Columbia Federal may not pay dividends that would reduce 
shareholders' equity below the required liquidation account balance.

      Under OTS regulations, limitations have been imposed on all "capital 
distributions", including cash dividends by savings institutions.  The 
regulation establishes a three-tiered system of restrictions, with the 
greatest flexibility afforded to thrifts that are both well capitalized and 
given favorable qualitative examination ratings by the OTS. 

4.    Pending Legislative Changes

      Congress is considering legislation to eliminate the federal savings 
association charter and the separate regulation of federal thrifts, 
including federal savings banks.  Pursuant to such legislation, Congress may 
develop a common charter for all financial institutions, eliminate the OTS 
and regulate Columbia Federal under federal law as a bank or require 
Columbia Federal to change its charter, which would likely change the type 
of activities in which Columbia Federal may engage and would probably 
subject Columbia Federal to more regulation by the FDIC.  In addition, CFKY 
may become subject to different holding company regulations, including 
separate capital requirements and limitations on activities.  Although CFKY 
cannot predict whether or when Congress may actually pass legislation 
regarding CFKY's and Columbia Federal's regulatory requirements or charter, 
it is not anticipated that the current activities of CFKY or Columbia 
Federal will be materially affected by such legislation.

5.    Earnings Per Share

      Basic earnings per share is computed based upon the weighted average 
shares outstanding during the period, less shares in the ESOP that are 
unallocated and not committed to be released.  Weighted average common 
shares outstanding, which give effect to 193,661 unallocated ESOP shares, 
totaled 2,471,139 and 2,474,464, respectively, shares for the three month 
and six month periods ended March 31, 1999 and 1998.  Diluted earnings per 
share is computed taking into consideration common shares outstanding and 
dilutive potential common shares.  Presently, CFKY has no dilutive potential 
common shares.  Weighted-average shares outstanding for purposes of 
computing diluted earnings per share totaled 2,471,139 and 2,474,464, 
respectively, for the three months and six months ended March 31, 1999 and 
1998.

<PAGE>  7 of 15

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

                    COLUMBIA FINANCIAL OF KENTUCKY, INC.

Note Regarding Forward-Looking Statements

      In addition to historical information contained herein, this Form 10-
QSB contains forward-looking statements that involve risks and 
uncertainties. Economic circumstances, Columbia Federal's operations and 
actual results could differ significantly from those discussed in the 
forward-looking statements.  Some of the factors that could cause or 
contribute to such differences are discussed herein but also include changes 
in the economy and interest rates in the nation and Columbia Federal's 
market area generally.

      Some of the forward-looking statements included herein are the 
statements regarding management's determination of the amount of allowance 
for losses on loans, the adequacy of collateral on nonperforming loans, 
legislative changes with respect to the federal thrift charter, the effect 
of certain accounting pronouncements and the year 2000.  See Exhibit 99 
"Safe Harbor Under the Private Securities Litigation Reform Act of 1995," 
attached hereto and incorporated herein by reference.

Discussion of Financial Condition Changes from
 September 30, 1998 to March 31, 1999

      General.  CFKY's assets totaled $120.0 million at March 31, 1999, an 
increase of $2.2 million, or 1.9%, from $117.8 million at September 30, 
1998.  The increase resulted primarily from a $1.0 million increase in cash 
and cash equivalents and a $3.7 million increase in loans receivable, 
partially offset by a $2.0 million decrease in investment securities and a 
$742,000 decrease in mortgage-backed securities.  Deposits increased $2.0 
million. 

      Liquid Assets and Investments.  Liquid assets (cash and cash 
equivalents) totaled $7.3 million at March 31, 1999, an increase of $1.0 
million, or 15.9%, from the total at September 30, 1998.  This increase was 
funded by an increase in deposits.  

      Loans Receivable.  Net loans receivable equaled $65.9 million at March 
31, 1999, compared to $62.2 million at September 30, 1998, a 5.9% increase, 
attributable to loans being originated more rapidly than loans were being 
repaid.  

      Allowance for Losses on Loans.  Columbia Federal's allowance for loan 
losses totaled $300,000 at March 31, 1999, and September 30, 1998.  The 
allowance represented .43% of total loans at March 31, 1999 and .45% at 
September 30, 1998.  As of September 30, 1998, there were $173,000 in 
nonperforming loans, which was .28% of net loans at that date. As of March 
31, 1999, there was $32,000 in nonperforming loans, which was .05% of net 
loans at that date.

      It is management's policy to maintain an allowance for estimated 
losses based on the perceived risk of loss in the loan portfolio.  In 
assessing risk, management considers historical loss experience, the volume 
and type of lending conducted by the Bank, industry standards, past due 
loans, general economic conditions and other factors related to the 
collectibility of the loan portfolio.

<PAGE>  8 of 15

      The following table sets forth the composition of the Bank's portfolio 
by type of loan at the dates indicated.

<TABLE>
<CAPTION>
                                        March 31, 1999         September 30, 1998
                                      -------------------      -------------------
                                      Amount      Percent      Amount      Percent
                                      ------      -------      ------      -------

<S>                                   <C>          <C>         <C>          <C>
Real Estate Loans
  One-to-four Family Residential      $55,065      79.35%      $53,579      81.21%
  Multi-family and Non-residential      8,256      11.90         7,440      11.28
  Land and Construction:
    Nonresidential Real Estate            791       1.14           704       1.07
    Construction Loans                  5,267       7.59         4,228       6.41
                                      -------------------------------------------
      Total Real Estate Loans          69,379      99.98        65,951      99.96
                                      -------------------------------------------

Consumer Loans
  Savings Accounts                         16        .02            20       0.03
  Other Consumer Loans                      -          -             5       0.01
                                      -------------------------------------------
      Total Consumer Loans                 16        .02            25       0.04
                                      -------------------------------------------

      Total Loans                      69,395     100.00%       65,976     100.00%
                                      -------     ======       -------     ======

Less
  Loans in Process                      2,433                    2,759
  Deferred Loan Fees                      759                      756
  Allowance for Loan Losses               300                      300
                                      -------                  -------

      Loans Receivable, Net           $65,903                  $62,161
                                      =======                  =======
</TABLE>

      The following is the change in the allowance for loan losses for the 
periods indicated.

<TABLE>
<CAPTION>
                                  Six Months Ended          Year Ended
                                   March 31, 1999       September 30, 1998
                                  ----------------      ------------------

<S>                                     <C>                   <C>
Allowance for Loan Losses
  Balance at Beginning of Period        $300                  $300
  Net (Charge-Offs) Recoveries             -                   (74)

  Provision for Loan Losses                -                    74
                                        --------------------------

  Balance at End of Period              $300                  $300
                                        ==========================
</TABLE>

      Although management believes that its allowance for loan losses at 
March 31, 1999, was adequate based upon the available facts and 
circumstances, there can be no assurances that additions to such allowance 
will not be necessary in future periods, which could adversely affect CFKY's 
results of operations.

      Deposits.  Total deposits increased by $2.0 million, to $81.5 million, 
at March 31, 1999, from $79.5 million at September 30, 1998. At March 31, 
1999, certificates of deposit that will mature within one year accounted for 
40.4% of Columbia Federal's deposit liabilities.  The increase resulted from 
managements continuing efforts to maintain a moderate rate of growth through 
marketing and pricing strategies.

      Regulatory Capital Requirements.   Columbia Federal is required by OTS 
regulations to meet certain minimum capital requirements.  These 
requirements call for tangible capital of 1.5% of adjusted total assets, 
core capital (which for Columbia Federal is equal to tangible capital) of 4% 
of adjusted total assets, and risk-based capital (which for Columbia Federal 
consists of core capital and general valuation allowances) equal to 8% of 
risk-weighted assets.  Assets and certain off balance sheet items are 
weighted at percentage levels ranging from 0% to 100% depending on their 
relative risk.

<PAGE>  9 of 15

      The OTS has adopted regulations governing prompt corrective action to 
resolve the problems of capital deficient and otherwise troubled savings 
associations.  At each successively lower capital category, an institution 
is subject to more restrictive and numerous mandatory or discretionary 
regulatory actions or limits, and the OTS has less flexibility in 
determining how to resolve the problems of the institution.  In addition, 
the OTS can downgrade an association's designation notwithstanding its 
capital level, based on less than satisfactory examination ratings in areas 
other than capital or, after notice and an opportunity for hearing, if the 
institution is deemed to be in an unsafe or unsound condition or to be 
engaging in an unsafe or unsound practice.  Each undercapitalized 
association must submit a capital restoration plan to the OTS within 45 days 
after it becomes undercapitalized.  Such institution will be subject to 
increased monitoring and asset growth restrictions and will be required to 
obtain prior approval for acquisitions, branching and engaging in new lines 
of business.  A critically undercapitalized institution must be placed in 
conservatorship or receivership within 90 days after reaching such 
capitalization level, except under limited circumstances.  Columbia 
Federal's capital at March 31, 1999 met the standards for the highest 
category, a "well-capitalized" association.

Comparison of Operating Results for the
 Three-Month Periods Ended March 31, 1999 and 1998

      General.  CFKY's recorded net income was $248,000 for the three months 
ended March 31, 1999, compared to income of $153,000 for the same period in 
1998, a $95,000 and 62% increase.  The increase resulted primarily from a 
$169,000 increase in interest income and decreases in interest expense of 
$174,000.  Such changes were offset by a $194,000 increase in non-interest 
expenses and a $52,000 increase in income tax expense.

      Interest Income.  Interest income increased $169,000 for the three 
months ended March 31, 1999 compared to the three months ended March 31, 
1998.  This was primarily a result of an increase of $14.4 million in 
average balances in interest earning assets, partially offset by a decrease 
of 37 basis points, from 7.65% for the three months ended March 31, 1998 to 
7.28% for the three months ended March 31, 1999, in the yield on interest 
earning assets.  The increase in average interest earning assets was a 
result of the initial public offering proceeds.

      Interest Expense.  Interest expense decreased $174,000 for the three 
months ended March 31, 1999 compared to the three months ended March 31, 
1998.  This decrease was the result of a decrease in cost of funds from 
4.81% for the three months ended March 31,1998 to 4.57% for the three months 
ended March 31, 1999, and by a decrease in average deposits of $10.3 million 
from $91.7 million for the three months ended March 31, 1998 to $81.4 
million for the three months ended March 31, 1999.  The decreases in average 
deposits were mainly the result of deposits being used to purchase stock in 
the initial public offering.

      Columbia Federal's net interest rate spread was 2.71% for the three 
months ended March 31, 1999, compared to 2.84% for the three months ended 
March 31, 1998.

      Non-interest Income and Non-interest Expense.  Non-interest income was 
$27,000 for the three months ended March 31, 1999, compared to $29,000 for 
the same period in 1998, primarily due to a decrease in fee income.  Non-
interest expense increased $194,000, or 29.7%, to $848,000.  The primary 
reason for this increase was the increase in salaries and employee benefits 
from $407,000 for the three months ended March 31, 1998, to $501,000 for the 
three months ended March 31, 1999 as a result of costs associated with 
CFKY's new ESOP.  Also, other expenses increased $95,000 for the period 
primarily due to an increase in license taxes for the holding company and 
increased expenses associated with the operation of a public company.

<PAGE>  10 of 15

Comparison of operating results for the
 six-month periods ended March 31, 1999 and 1998

      General.  Columbia Federal recorded net income of $531,000 for the six 
months ended March 31, 1999, an increase of $325,000, or 158%, compared to 
income of $206,000 for the same period in 1998.  The increase resulted 
primarily from a $368,000 increase in interest income, a $338,000 decrease 
in interest expense, and a $74,000 decrease in provision for loan losses, 
partially offset by a $163,000 increase in salary and employee benefits,  a 
$128,000 increase in other non-interest expense and a $170,000 increase in 
income tax expense.

      Interest Income.  Interest income increased $368,000 for the six 
months ended March 31, 1999 compared to the six months ended March 31, 1998.  
This was primarily a result of an increase of $15.0 million in average 
balances in interest earning assets, partially offset by a reduction in 
yield on interest earning assets of 36 basis points from 7.68% for the six 
months ended March 31, 1998 to 7.32% for the six months ended March 31, 
1999.  The increase in average interest earning assets was a result of the 
offering proceeds.

      Interest Expense.  Interest expense decreased $338,000 for the six 
months ended March 31, 1999 compared to the six months ended March 31, 1998.  
This decrease was a result of a decrease in average deposits of $9.7 million 
from $90.6 million for the six months ended March 31, 1998 and a decrease in 
cost of funds from 4.86% for the six months ended March 31, 1998 to 4.61% 
for the six months ended March 31, 1999.  The decreases in average deposits 
were mainly the result of deposits being used to purchase stock in the 
initial public offering.

      Columbia Federal's net interest rate spread was 2.71% for the six 
months ended March 31, 1999, compared to 2.82% for the six months ended 
March 31, 1998.  

      Allowance and provision for loan losses.  During the six months ended 
March 31, 1998, management decided to record a provision to loan losses of 
$74,000 to return its allowance to $300,000.  During the six months ended 
March 31, 1998, Columbia Federal incurred losses on five loans held by two 
individuals.  A write-down of $74,000 was recorded when these loans were 
recorded as real estate owned.  The allowance for loan losses did not change 
during the six months ended March 31, 1999.

      Non-interest income and non-interest expense.  Non-interest income was 
$58,000 for the six months ended March 31, 1999, compared to $56,000 for the 
same period in 1998.  Non-interest expense increased $287,000, or 21.1%, to 
$1.6 million.  Salaries and employee benefits increased $163,000, or 19.59%, 
to $995,000, mainly as a result of the Company's ESOP.  Other non-interest 
expenses increased $128,000 to $377,000 due to increased costs of the 
holding company, including license taxes and other costs associated with 
being a public company.

<PAGE>  11 of 15

Year 2000 Readiness

      Because the Bank's operations rely extensively on computer systems, 
the Bank is addressing problems associated with the possibility that 
computer systems will not recognize the year 2000 ("Y2K") correctly.  The 
Bank has developed a Year 2000 Plan, which was presented to the Board of 
Directors in 1997.  The Board of Directors appointed a Year 2000 Committee, 
which reports to the Board of Directors quarterly.

      The Bank relies primarily on third-party vendors for its computer 
output and processing, as well as other significant functions and services, 
such as securities safekeeping services, ATM service, and wire transfers.  
The Year 2000 Committee is working with the vendors to assess their Y2K 
readiness.  Based upon an initial assessment, the Board of Directors 
believes that with planned modifications to existing software and hardware 
and planned conversions to new software and hardware, the third-party 
vendors are taking the appropriate steps to ensure that critical systems 
will function properly.  The planned modifications and conversions should be 
completed and tested by June 30, 1999.

      All date-dependent equipment and related software throughout the Bank 
have been inventoried and tested for Y2K capabilities.  Equipment identified 
as not being Y2K compatible has been replaced.  The Bank has estimated that 
the cost for new hardware and software will be approximately $15,000.

      If the modifications and conversions by both third-party vendors and 
the Bank are not completed on a timely basis or if they fail to function 
properly, the operations and financial condition of the Company could be 
materially adversely affected.  The Bank has developed contingency plans for 
continued operations in the event of system failure. 

      In addition, financial institutions may experience increases in 
problem loans and credit losses in the event that borrowers fail to prepare 
properly for Y2K, and higher funding costs could result if consumers react 
to publicity about the issue by withdrawing deposits.  The Bank has assessed 
such risks among its customers as very low due to the composition of its loan 
portfolio as approximately 90% residential real estate.  The Company could 
also be materially adversely affected if other third parties, such as 
governmental agencies, clearinghouses, telephone companies, utilities and 
other service providers fail to prepare properly.  The Bank is therefore 
attempting to assess these risks and take action to minimize their effect.

<PAGE>  12 of 15

                                   PART II
                    COLUMBIA FINANCIAL OF KENTUCKY, INC.

Item 1.  Legal Proceedings

         Not applicable.

Item 2.  Changes in Securities and Use of Proceeds

         (a)   Not applicable.

         (b)   Not applicable.

         (c)   Not applicable.

         (d)   Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

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

         Not applicable.

Item 5.  Other Information

         Not applicable.

<PAGE>  13 of 15

Item 6.  Exhibits and Reports on Form 8-K

Exhibit 3.1 - Articles of Incorporation of Columbia Financial of Kentucky, 
              Inc.

              Incorporated by reference to Registration Statement on Form 8-
              A of the Registrant filed with the SEC on March 20, 1998, 
              Exhibit 2(a) and 2(b).

Exhibit 3.2 - Code of Regulations of Columbia Financial of Kentucky, Inc.

              Incorporated by reference to Registration Statement on Form 8-
              A of the Registrant filed with the SEC on March 20, 1998, 
              Exhibit 2(c).

Exhibit 27 -  Financial Data Schedule

Exhibit 99 -  Safe Harbor Under the Private Securities Litigation Reform Act 
              of 1995

<PAGE>  14 of 15

                                 SIGNATURES

                    COLUMBIA FINANCIAL OF KENTUCKY, INC.


      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.


Date: May 14, 1999                        By: /s/  Robert V. Lynch
                                              Robert V. Lynch, President and
                                              Chief Executive Officer 


Date: May 14, 1999                        By: /s/  Abijah Adams
                                              Abijah Adams, Controller

<PAGE> 15 of 15