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, 1998

                                     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 11, 1998, the 
latest practicable date, 2,671,450 common shares of the registrant, no par 
value, were issued and outstanding.

*   Prior to April 15, 1998, the Registrant conducted no business except 
    the offering of its common shares and preparation to acquire Columbia 
    Federal Savings Bank.  The financial information contained in this Form 
    10-QSB is, therefore, provided for Columbia Federal Savings Bank.


                                    INDEX

                        COLUMBIA FEDERAL SAVINGS BANK

                                                                       Page
                                                                       ----

PART I   -  FINANCIAL INFORMATION

            Statements of Financial Condition                            3
            Statements of Income                                         4
            Statements of Cash Flows                                     5
            Notes to Financial Statements                                6
            Management's Discussion and Analysis of Financial 
             Condition and Results of Operations                         9

PART II  -  OTHER INFORMATION                                           12

SIGNATURES                                                              13


                        Columbia Federal Savings Bank

                      STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>

                                                           Mar. 31     Sept. 30
                                                             1998         1997
                                                           --------------------
                                                              (In Thousands)
<S>                                                        <C>         <C>
                         ASSETS

Cash and due from Banks                                    $    616    $    612
Interest Bearing Deposits in Other Banks                     30,908       6,215
                                                           --------------------

      Total Cash and Cash Equivalents                        31,524       6,827

Investment Securities
  Held to Maturity, At Cost (Market Value of
   $13,090 and $13,068 at March 31, 1998 and  
   September 30, 1997)                                       13,025      13,069
  Available-for-Sale, At Market Value                            --       1,003
Mortgage-Backed Securities, At Cost (Market Value
 of $19,917 and $17,893 at March 31, 1998 and
 September 30, 1997)                                         17,846      17,862
Loans Receivable, Net                                        61,415      61,578
Interest Receivable                                             754         712
Premises and Equipment, Net                                   1,625       1,595
Federal Home Loan Bank Stock, At Cost                         1,306       1,260
Federal Income Tax - Refund Receivable                           --          13
Other Assets                                                    231          87
                                                           --------------------
      Total Assets                                         $127,726    $104,006
                                                           ====================

                           LIABILITIES AND EQUITY

Liabilities
  Deposits                                                 $113,871    $ 90,195
  Advances from Borrowers for Taxes and Insurance               278         460
  Accrued Federal Income Tax Liability                           45          --
  Deferred Federal Income Tax Liability                         162         162
  Other Liabilities                                              74          98
                                                           --------------------
      Total Liabilities                                     114,430      90,915
                                                           --------------------

Equity
  Retained Earnings - Substantially Restricted               13,296      13,090
  Unrealized (Loss) Gain on Available-for-Sale
   Securities, Net of Related Taxes                              --           1
                                                           --------------------
      Total Equity                                           13,296      13,091
                                                           --------------------
      Total Liabilities and Equity                         $127,726    $104,006
                                                           ====================
</TABLE>


                        Columbia Federal Savings Bank

                            STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                                      Three Months Ended       Six Months Ended
                                                           March 31,               March 31,
                                                      ------------------------------------------
                                                       1998        1997        1998        1997
                                                      ------------------------------------------

<S>                                                   <C>         <C>         <C>         <C>
Interest Income
  Loans                                               $1,337      $1,484      $2,685      $2,949
  Mortgage-Backed Securities                             298         288         577         584
  Investments                                            245         206         493         428
  Interest-Bearing Deposits                               77          35         134          70
                                                      ------------------------------------------
      Total Interest Income                            1,957       2,013       3,889       4,031
                                                      ------------------------------------------

Interest Expense
  Deposits                                             1,103       1,099       2,201       2,219
  FHLB Advances                                           --          14          --          18
                                                      ------------------------------------------
      Total Interest Expense                           1,103       1,113       2,201       2,237
                                                      ------------------------------------------

Net Interest Income                                      854         900       1,688       1,794

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

      Net Interest Income After Provision for 
       Losses on Loans                                   854         900       1,614       1,794
                                                      ------------------------------------------
Non-Interest Income                                       29          17          56          45
                                                      ------------------------------------------
Non-Interest Expense
  Salaries and Employee Benefits                         407         375         832         828
  Occupancy Expense of Premises                           64          65         128         117
  Federal Deposit Insurance Premiums                      14           3          28          59
  Legal, Audit and Examination                            19          17          34          36
  Data Processing Services                                31          30          59          57
  Advertising                                             30          27          65          54
  Intangible and Other Taxes                              26          25          51          50
  Other                                                   63          65         164         147
                                                      ------------------------------------------
      Total Non-Interest Expense                         654         607       1,361       1,348
                                                      ------------------------------------------

      Income Before Federal Income Tax Expense           229         310         309         401

Federal Income Tax Expense                                76         105         103         167
                                                      ------------------------------------------
      Net Income                                      $  153      $  205     $   206      $  324
                                                      ==========================================

</TABLE>

See auditors' report and accompanying notes.

									      
                        Columbia Federal Savings Bank

                          STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                   Six Months Ended
                                                                       March 31,
                                                                  -------------------
                                                                   1998        1997
                                                                  -------------------
                                                                  (In Thousands)
<S>                                                               <C>         <C>
Cash Flows From Operating Activities
  Net Income                                                      $   206     $   324
  Reconciliation of Net Income with Cash Flows from Operations
    Depreciation                                                       61          39
    Provision for Losses on Loans                                      74          --
    FHLB Stock Dividends                                              (46)        (41)
  Changes In Interest Receivable                                      (42)         63
    Other Assets                                                      (29)          7
    Federal Income Tax Receivable / Liability                          58         157
    Other Liabilities                                                 (24)       (609)
                                                                  -------------------
      Net Cash Provided by Operating Activities                       258         (60)
                                                                  -------------------

Cash Flows From Investing Activities
  Investment Securities
    Purchased                                                      (6,001)     (1,501)
    Matured                                                         7,048       2,502
  Mortgage-Backed Securities 
    Principal Collected                                                16       2,535
  Loan Originations and Repayments, Net                               163      (1,880)
  Deferred Conversion Costs                                          (190)         --
  Purchases of Property and Equipment                                 (91)       (303)
                                                                  -------------------
      Net Cash (Used) Provided by Investing Activities                945       1,353
                                                                  -------------------

Cash Flows From Financing Activities
  Advances from Borrowers for Taxes and Insurance                    (182)         40
  Change in Deposits                                               23,676      (2,456)
  Proceeds from FHLB Advances                                          --       1,000
                                                                  -------------------
      Net Cash (Used) Provided by Financing Activities             23,494      (1,416)
                                                                  -------------------

      Change in Cash and Cash Equivalents                          24,697        (123)

Beginning Balance, Cash and Cash Equivalents                        6,827       3,047
                                                                  -------------------
      Ending Balance, Cash and Cash Equivalents                   $31,524     $ 2,924
                                                                  ===================

</TABLE>


See auditors report and accompany notes.


                        Columbia Federal Savings Bank
                        NOTES TO FINANCIAL STATEMENTS
                        COLUMBIA FEDERAL SAVINGS BANK

                  For the three and six-month periods ended
                           March 31, 1998 and 1997


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 financial statements and 
notes thereto of Columbia Federal Savings Bank for the year ended September 
30, 1997.  However, in the opinion of management, all adjustments 
(consisting of only normal recurring accruals) which are necessary for fair 
presentation of the financial statements have been included.  The results 
of operations for the three-month and six-month periods ended March 31, 
1998 and 1997 are not necessarily indicative of the results which may be 
expected for an entire fiscal year.

      The accompanying financial statements include the accounts of 
Columbia Federal Savings Bank ("Columbia Federal"). At March 31, 1998, 
Columbia Federal was in the process of converting to a stock association.  
Upon completion of the conversion, on April 15, 1998 Columbia Federal 
became a wholly owned subsidiary of Columbia Financial of Kentucky, Inc. 
("CFKY").

2.    Impact of Recent Accounting Standards
      -------------------------------------

      In June 1997, the Financial Accounting Standards Board ("FASB") 
issued SFAS No. 131, "Disclosures about Segments of an Enterprise and 
Related Information."  SFAS No. 131, which is effective for fiscal years 
beginning after December 15, 1997, requires operating segments of a company 
be segregated to provide a better understanding of performance and a better 
assessment of its future cash flows.  Generally, financial information is 
required to be reported on the bases that it is used internally for 
evaluating segment performance and deciding how to allocate resources to 
segments. Management does not believe that the adoption of SFAS No. 131 
will have a material impact on the disclosure requirements of CFKY.

      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.  Management does not believe the 
adoption of SFAS No. 130 will have a material impact on the disclosure 
requirements of CFKY.

      In February 1997, the FASB issued SFAS No. 128, "Earnings Per Share," 
which establishes standards for computing and presenting earnings per share 
("EPS") by entities with publicly held common stock or potential common 
stock.  SFAS No. 128 simplifies the standards for computing earnings per 
share previously found in Accounting Principles Board ("APB") Opinion No. 
15, "Earnings Per Share."  Basic EPS excludes dilution and is computed by 
dividing income available to common stockholders by the weighted-average 
number of common shares outstanding for the period.  Diluted EPS reflects 
the potential dilution that could occur if securities or other contracts to 
issue common stock were exercised or converted into common stock or 
resulted in the issuance of common stock that then shared in the earnings 
of the entity.

      Diluted EPS is computed similarly to fully diluted EPS pursuant to 
APB Opinion No. 15.  SFAS No. 128 supersedes APB Opinion No. 15 and is 
effective for financial statements issued for periods ending after December 
15, 1997, including interim periods.  Effective this quarter, management 
has adopted SFAS No. 128.  Since CFKY's offering was not completed until 
April 15, 1998, SFAS No. 128 has no effect on disclosure in these financial 
statements.  Management does not believe the application of this standard 
to future periods will have a material impact on the disclosure 
requirements of CFKY.

      In February 1997, the FASB issued SFAS No. 129, which incorporates 
the disclosure requirements of APB Opinion No. 15, and makes them 
applicable to all public and nonpublic entities that have issued securities 
addressed by SFAS No. 129.  APB Opinion No. 15 requires disclosure of 
descriptive information about securities that is not necessarily related to 
the computation of EPS.  SFAS No. 129 continues the previous requirements 
to disclose certain information about an entity's capital structure found 
in APB Opinions No. 19, "Omnibus Opinion - 1966," and No. 15, and SFAS No. 
47, "Disclosure of Long-Term Obligations," for entities that were subject 
to the requirements of those standards.  SFAS No. 129 eliminates the 
exemption of nonpublic entities from certain disclosure requirements of APB 
Opinion No. 15 as provided by SFAS No. 21, "Suspension of the Reporting of 
Earnings per Share, and Segment Information by Nonpublic Enterprises."  
SFAS No. 129 supersedes specific disclosure requirements of APB Opinions 
Nos. 10 and 15 and SFAS No. 47 and consolidates them in SFAS No. 129 for 
ease of retrieval and for greater visibility to nonpublic entities.  SFAS 
No. 129 is effective for financial statements for periods ending after 
December 15, 1997.  Columbia Federal has not previously issued any common 
shares and SFAS No. 129 will be adopted by CFKY in the initial period after 
December 15, 1997.  Management believes the adoption of SFAS No. 129 will 
not have a material impact on the disclosure requirements of CFKY.

      In December 1996, the FASB issued SFAS No. 126, which amends SFAS No. 
107, "Disclosure About Fair Value of Financial Instruments," to make the 
disclosures about fair value of financial instruments prescribed in SFAS 
No. 107 optional for nonpublic entities with total assets less than $100 
million on the date of the financial statement.  SFAS No. 126 also requires 
that the entity has not held or issued any derivative financial 
instruments, as defined in SFAS No. 119, "Disclosure About Derivative 
Financial Instruments and Fair Value of Financial Instruments," other than 
loan commitments, during the reporting periods.  Management believes the 
adoption of SFAS No. 126 will not impact the disclosure requirements of 
CFKY based on Columbia Federal's compliance with SFAS No. 107 disclosure 
requirements in prior periods.

      In June 1996, the FASB issued SFAS No. 125, which is effective, on a 
prospective basis, for fiscal years beginning after December 31, 1996.  
SFAS No. 125 provides accounting and reporting standards for transfers and 
servicing of financial assets and extinguishment of liabilities based on 
consistent application of a financial-components approach that focuses on 
control.  SFAS No. 125 extends the "available for sale" and "trading" 
approach of SFAS No. 115 to non-security financial assets that can be 
contractually prepaid or otherwise settled in such a way that the holder of 
the asset would not recover substantially all of its recorded investment.  
In addition, SFAS No. 125 amends SFAS No. 115 to prevent a security from 
being classified as held-to-maturity if the security can be prepaid or 
settled in such a manner that the holder of the security would not recover 
substantially all of its recorded investment.  The extension of the SFAS 
No. 115 approach to certain non-security financial assets and the amendment 
to SFAS No. 115 are effective for financial assets held on or acquired 
after January 1, 1997.  Effective January 1, 1997, SFAS No. 125 superseded 
SFAS No. 122, which is discussed above.  Management does not believe the 
adoption of SFAS No. 125 will have 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 shares purchased by 
the ESOP of $2.1 million, resulted in net proceeds of $23.8 million.

      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 which are both well-capitalized 
and given favorable qualitative examination ratings by the OTS.

      Conversion costs were deferred and deducted from the proceeds of the 
shares sold in connection with the conversion. As of March 31, 1998, 
$193,000 of conversion costs had been deferred.


4.    Pending Legislative Changes
      ---------------------------

      Legislation to recapitalize the Savings Association Insurance Fund 
(the "SAIF") of the Federal Deposit Insurance Corporation (the "FDIC") and 
to eliminate a significant premium disparity between the Bank Insurance 
Fund (the "BIF") of the FDIC and the SAIF effective September 30, 1996, 
provides for the merger of the BIF and the SAIF effective January 1, 1999, 
assuming that the federal savings association charter has been eliminated.  
Columbia Federal cannot predict the impact of such a merger on Columbia 
Federal's net earnings and capital.

      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


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

                        COLUMBIA FEDERAL SAVINGS BANK


                  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.


Discussion of Financial Condition Changes from September 30, 1997 to 
 March 31, 1998
---------------------------------------------------------------------

      General.  Columbia Federal's assets totaled $127.7 million at 
December 31, 1997, an increase of $23.7 million, or 22.8%, from $104.0 
million at September 30, 1997.  The increase resulted primarily from a 
$24.7 million increase in cash and cash equivalents, partially offset by a 
$1.0 million decrease in available-for-sale securities.  Deposits increased 
$23.7 million and advances from borrowers for taxes and insurance decreased 
$182,000.

      The increase in cash and deposits was primarily a result of stock 
subscriptions received in regard to Columbia Financial of Kentucky, Inc.'s 
(CFKY) initial public stock offering which was completed on April 15, 1998.  
On about that date, approximately $38.4 million received by Columbia 
Federal for unfilled stock subscriptions was returned.

      Liquid Assets.  Liquid assets (cash and cash equivalents) totaled 
$31.5 million, an increase of $24.7 million, or 362%, from the total at 
September 30, 1997.  This increase resulted primarily from an increase in 
deposits of $23.7 million, in conjunction with CFKY's stock offering.

      Loans Receivable.  Net loans receivable equaled $61.4 million at 
March 31, 1998, compared to $61.6 million at September 30, 1997, a 0.3% 
decrease, attributable to loans being repaid more rapidly than loans were 
being originated.

      Allowance for Losses on Loans.  Columbia Federal's allowance for loan 
losses totaled $300,000 at March 31, 1998, and September 30, 1997.  The 
allowance represented .49% of total loans at March 31, 1997 and September 
30, 1997.  As of  September 30, 1997, there was $601,000 in nonperforming 
loans, which was .98% of total loans at that date.  Of such amount, 
$473,000 was due from one borrower with 18 loans.  As of March 31, 1998, 
all nonperforming loans had been brought current.

      Although management believes that its allowance for loan losses at 
March 31, 1998, 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 
Columbia Federal's results of operations.

      Deposits.  Total deposits increased by $23.7 million, to $113.9 
million, at March 31, 1998, from $90.2 million at September 30, 1997.  This 
increase resulted primarily from deposits during the period, in conjunction 
CFKY's stock offering.  At March 31, 1998, certificates of deposit that 
will mature within one year accounted for 16.3% of Columbia Federal's 
deposit liabilities.

      Capital.  Columbia Federal is required to meet each of three minimum 
capital standards promulgated by the Office of Thrift Supervision (the 
"OTS"), hereinafter described as the tangible capital requirement, the core 
capital requirement and the risk-based capital requirement.  The tangible 
capital requirement provides for the maintenance of retained earnings less 
all intangible assets equal to 1.5% of adjusted total assets.  The core 
capital requirement provides for the maintenance of tangible capital plus 
certain forms of supervisory goodwill equal to 3% of adjusted total assets, 
while the risk-based capital requirement mandates maintenance of core 
capital plus general loan loss allowances equal to 8% of risk-weighted 
assets as defined by OTS regulations.  As of March 31, 1998, Columbia 
Federal's tangible and core capital totaled $13.3 million, or 10.3% of 
adjusted total assets, which exceeded the minimum requirements of $2.5 
million and $5.1 million, by $10.8 million and $8.2 million, respectively.  
As of December 31, 1997, Columbia Federal's risk-based capital was $13.6 
million, or 28.0% of risk-weighted assets, exceeding the minimum 
requirement by $9.7 million.


Comparison of Operating Results for the Three-Month Periods Ended
 March 31, 1998 and 1997
-----------------------------------------------------------------

      General.  Columbia Federal recorded net income of $153,000 for the 
three months ended March 31, 1998, compared to income of $205,000 for the 
same period in 1997.  The decrease resulted primarily from a $56,000 
decrease in interest and fees on loans and a $47,000 increase in non-
interest expense.  Such changes were offset by a  $14,000 decrease in 
interest on FHLB advances, a $29,000 decrease in income tax expense, and a 
$12,000 increase in non-interest income.

      Interest Income.  Interest income decreased $56,000 for the three 
months ended March 31, 1998 compared to the three months ended March 31, 
1997.  This was a result of a reduction in yield on earning assets of .12% 
from 7.76% for the three months ended March 31, 1997 to 7.64% for the three 
months ended March 31, 1998 coupled with a decrease in average loans 
receivable of $7.5 million from $68.7 million for the three months ended 
March 31, 1997 to $61.2 million for the three months ended March 31, 1998. 
The decrease in yield was primarily due to the repayment before maturity of 
a large, higher yielding mortgage loan.  The reduction in loans receivable 
was a result of decreased loan demand.

      Interest Expense.  Interest expense decreased $10,000 for the three 
months ended March 31, 1998 compared to the three months ended March 31, 
1997.  This decrease was the result of a $14,000 decrease in interest on 
FHLB advances for the three months ended March 31, 1998.  Average deposits 
decreased $1.6 million from $93.3 million for the three months ended March 
31, 1997 to $91.7 for the three months ended March 31, 1998.  The decrease 
in average deposits was offset by an increase in cost of funds from 4.72% 
for the three months ended March 31, 1997 to 4.80% for the three months 
ended March 31, 1998. This increase in costs of deposits was due to 
increased competitive pressures.

      Columbia Federal's net interest rate spread was 2.84% for the three 
months ended March 31, 1998, compared to 3.04% for the three months ended 
March 31, 1997.

      Non-interest Income and Non-interest Expense.  Non-interest income 
was $29,000 for the three months ended March 31, 1998, compared to $17,000 
for the same period in 1997, primarily due to an increase in fee income.  
Non-interest expense increased $47,000, or 7.7%, to $654,000.  The primary 
reason for this increase was the increase in salaries and employee benefits 
from $375,000 for the three months ended March 31, 1997, to $407,000 for 
the three months ended March 31, 1998 as a result of merit  increases 
coupled with an increase in benefit costs.

Comparison of Operating Results for the Six-Month Periods Ended
 March 31, 1998 and 1997
---------------------------------------------------------------

      General.  Columbia Federal recorded net income of $206,000 for the 
six months ended March 31, 1998, compared to income of $324,000 for the 
same period in 1997.  The decrease resulted primarily from a $142,000 
decrease in interest and fees on loans, a $74,000 provision for loan losses 
in 1998 with no provision in 1997, and a $13,000 increase in non-interest 
expense.  Such changes were offset by a  $36,000 decrease in interest on 
deposits and FHLB advances, a $64,000 decrease in income tax expense and an 
$11,000 increase in non-interest income.

      Interest Income.  Interest income decreased $142,000 for the six 
months ended March 31, 1998 compared to the six months ended March 31, 
1997.  This was a result of a reduction in yield on earning assets of .08% 
from 7.76% for the six months ended March 31, 1997 to 7.68% for the six 
months ended March 31, 1998 coupled with a decrease in average loans 
receivable of $8.0 million from $69.4 million for the six months ended 
March 31, 1997 to $61.4 million for the six months ended March 31, 1998. 
The decrease in yield was due to the repayment before maturity of a large, 
higher yielding mortgage loan.  The reduction in loans receivable was a 
result of decreased loan demand.

      Interest Expense.  Interest expense decreased $36,000 for the six 
months ended March 31, 1998 compared to the six months ended March 31, 
1997.  This decrease was a result of a decrease in average deposits of $3.0 
million from $93.6 million for the six months ended March 31, 1997 to $90.6 
million for the six months ended March 31, 1998 and the repayment of FHLB 
advances.  The decrease in average deposits was partially offset by an 
increase in cost of funds from 4.78% for the six months ended March 31, 
1997 to 4.86% for the six months ended March 31, 1998. This increase in 
costs of deposits was due to increased competitive pressures.

      Columbia Federal's net interest rate spread was 2.82% for the six 
months ended March 31, 1998, compared to 2.98% for the six months ended 
March 31, 1997.

      Allowance and Provision for Loan Losses.  After review of its 
allowance for loan losses, management decided to record a provision for 
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.  The balances of these loans totaled $153,000.  A 
writedown of $74,000 was recorded when these loans were recorded as real 
estate owned.  These properties were sold during the six months ended March 
31, 1998.

      Non-interest Income and Non-interest Expense.  Non-interest income 
was $56,000 for the six months ended March 31, 1998, compared to $45,000 
for the same period in 1997, primarily due to an increase in fee income.  
Non-interest expense increased $13,000, or 0.9%, to $1.4 million.  The 
primary reason for this increase was an increase in occupancy expense of 
$11,000, increase in other expenses of $17,000 and an increase in 
advertising expense of $11,000.  These increases were primarily the result 
of the relocation of the Florence office, which increased advertising, 
furniture, telephone and stationary costs.  This was partially offset by a 
$31,000 decrease in federal deposit insurance premiums as a result of the 
recapitalization of the Savings Association Insurance Fund.

Year 2000 Issues
----------------

      As with all financial institutions, Columbia Federal's operations 
depend almost entirely on computer systems.  Columbia Federal is addressing 
the potential problems associated with the possibility that the computers 
which control or operate Columbia Federal's operating systems, facilities 
and infrastructure may not be programmed to read four-digit date codes and, 
upon arrival of year 2000, may recognize the two-digit code "00" as the 
year 1900, causing systems to fail to function or generate erroneous data.  
Columbia Federal is working with the companies that supply or service its 
computer-operated or dependent systems to identify and remedy any year 2000 
related problems.

      Currently, Columbia Federal has not identified any specific expenses 
which are reasonably likely to be incurred by Columbia Federal in 
connection with the issue, and does not expect to incur significant expense 
to implement corrective measures.  No assurance can be given, however, that 
significant expense will not be incurred in future periods.  In the event 
that Columbia Federal is ultimately required to purchase replacement 
computer systems, programs and equipment, or that substantial expense must 
be incurred to make Columbia Federal's current systems, programs and 
equipment year 2000 compliant, Columbia Federal's net income and financial 
condition could be adversely affected.

      In addition to possible expense related to its own systems, Columbia 
Federal could incur losses if loan payments are delayed due to year 2000 
problems affecting any of Columbia Federal's significant borrowers or 
impairing the payroll systems of large employers in Columbia Federal's 
primary market area.  Because Columbia Federal's loan portfolio is highly 
diversified with regard to individual borrowers and types of businesses and 
Columbia Federal's primary market area is not significantly dependent upon 
one employer or industry, Columbia Federal does not expect any significant 
or prolonged difficulties that will affect net earnings or cash flow.


                                   PART II
                    COLUMBIA FINANCIAL OF KENTUCKY, INC.

Item 1.    Legal Proceedings
           -----------------

           Not applicable.

Item 2.    Changes in Securities and Use of Proceeds
           -----------------------------------------

           Not applicable.

Item 3.    Defaults Upon Senior Securities
           -------------------------------

           Not applicable.

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

           By an action in writing without a meeting effective February 9, 
           1998, the sole shareholder of CFKY adopted amendments to the 
           Articles of Incorporation and the Code of Regulations of CFKY 
           eliminating cumulative voting in the election of directors and 
           adopted an amendment to the Articles of Incorporation of CFKY 
           increasing the number of authorized shares of CFKY to seven 
           million, of which six million are common shares and one million 
           are preferred shares, each without par value.

Item 5.    Other Information
           -----------------

           Not applicable.

Item 6.    Exhibits and Reports on Form 8-K
           --------------------------------

           Exhibit 27 - Financial Data Schedule



                                 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 15, 1998                   By: /s/ Robert V. Lynch
      ----------------------             -------------------------------
                                         Robert V. Lynch, President and
                                         Chief Executive Officer 


Date: May 15, 1998                   By: /s/ Abijah Adams
      ----------------------             -------------------------------
                                         Abijah Adams, Controller