United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                    Form 10-Q


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


               For the quarterly period ended: September 30, 1995


                         Commission file number: 0-8673




                  Financial Services Corporation of the Midwest
             (Exact name of registrant as specified in its charter)



          Delaware                                              36-2301786
(State or other jurisdiction                                (IRA  Employer  of
incorporation or organization)                              Identification No.)



         224 - 18th Street,  Suite 202, Rock Island,  Illinois 61201-8737
                    (Address of principal executive offices)



                                 (309) 794-1120
                         (Registrant's telephone number)



Indicated by check mark whether the issuer (1) filed all reports  required to be
filed by Section 13 or 15(d) of the 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 [ ]


                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest  practicable  date: common stock, $.50 Par value,
175,111 shares





<PAGE>

                 FINANCIAL SERVICES CORPORATION OF THE MIDWEST


                                      INDEX



Part I -- Financial Information

                                                                    Page No.
Item 1     Unaudited Financial Statements:


     Consolidated Balance Sheets --
       September 30, 1995 and March 31, 1995                               3

     Consolidated Statements of Income -- Six and
       Three Months Ended September 30, 1995 and 1994                      4

     Consolidated Statements of Stockholders' Equity --
       Six Months Ended September 30, 1995 and 1994                        5

     Consolidated Statements of Cash Flows --
       Six Months Ended September 30, 1995 and 1994                        6

     Notes to Consolidated Financial Statements                            7

Item 2    Management's Discussion and Analysis of
            the Financial Condition and Results of Operations           8-13


Part II -- Other Information and Signatures

<PAGE>

                 FINANCIAL SERVICES CORPORATION OF THE MIDWEST

                           CONSOLIDATED BALANCE SHEETS
                (Dollars in Thousands, Except Per Share Amounts)
<TABLE>

                                                                                                                   (Unaudited)
                                                                                                          September 30,    March 31,
                                                                                                              1995           1995
                                                                                                          -------------    ---------
<S>                                                                                                          <C>          <C>


         ASSETS
Cash and due from banks ................................................................................    $  12,325     $  13,955
Interest-bearing deposits with other financial institutions ............................................           99           198
Investment securities:
    Held-to-maturity (approximate market value September 30, 1995-$80,760 and
       March 31, 1995-$69,852) .........................................................................       80,826        71,822
    Available-for-sale (amortized cost September 30, 1995-$4,992 and March 31, 1995-$0) ................        5,004             0
Federal funds sold .....................................................................................        5,100        32,900

Loan and direct financing leases .......................................................................      239,528       212,076
    Less:  Allowance for possible loan and lease losses ................................................       (3,975)       (3,832)
                                                                                                             --------      --------
       Total loans and leases, net .....................................................................      235,553       208,244

Premises, furniture and equipment, net .................................................................        4,862         3,623
Accrued interest receivable ............................................................................        2,732         1,960
Other real estate, net .................................................................................          750           378
Other assets ...........................................................................................        4,382         4,374
                                                                                                            ---------     ---------
       Total ...........................................................................................    $ 351,633     $ 337,454
                                                                                                            =========     =========
         LIABILITIES AND STOCKHOLDERS' EQUITY
         Liabilities:
         Deposits:
             Demand ....................................................................................    $  31,789     $  33,496
             N.O.W. accounts ...........................................................................       23,277        23,974
             Savings ...................................................................................       40,767        42,823
             Insured money market ......................................................................        9,155         8,830
             Other time ................................................................................      172,558       162,488
                                                                                                            ---------     ---------
                Total deposits .........................................................................      277,546       271,611

         Accounts payable and accrued liabilities ......................................................        4,827         3,895
         Securities sold under agreements to repurchase ................................................       38,202        33,371
         Other short-term borrowings ...................................................................        1,500           366
         Notes payable .................................................................................        5,000         5,000
         Mandatory convertible debentures ..............................................................        1,250         1,250
                                                                                                              -------       -------

                Total liabilities ......................................................................      328,325       315,493
                                                                                                              =======       =======
         Stockholders' equity:
         Capital stock:
             Preferred, no par value; authorized, 100,000 shares:
                Class A Preferred Stock, stated value $100 per share; authorized 50,000 shares;
                    issued and outstanding:  September 30, 1995 and March 31, 1995 - 50,000 shares .....        5,000         5,000
                Class B Preferred Stock, stated value $500 per share; authorized, 1,000 shares;
                    issued and outstanding:  September 30, 1995 and March 31, 1995 - 1,000 shares ......          500           500
                Class C Preferred Stock, stated value $425 per share; authorized, 2,400 shares;
                    issued and outstanding:  September 30, 1995 and March 31, 1995 - 2,400 shares ......        1,020         1,020
             Common, par value $.50 per share; authorized, 600,000 shares;
                issued:  September 30, 1995 and March 31, 1995 - 340,662 shares;
                outstanding:  September 30, 1995 and March 31, 1995 - 175,111 shares ...................          170           170
             Capital surplus ...........................................................................        2,521         2,521
             Net unrealized gain on available-for-sale securities ......................................            8             0
             Retained earnings .........................................................................       19,386        18,047
             Treasury stock ............................................................................       (5,297)       (5,297)
                                                                                                            ---------     ---------
                    Total stockholders' equity .........................................................       23,308        21,961
                                                                                                            ---------     ---------
                Total ..................................................................................    $ 351,633     $ 337,454
                                                                                                            =========     =========
</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>
                  FINANCIAL SERVICES CORPORATION OF THE MIDWEST

                        CONSOLIDATED STATEMENTS OF INCOME
                (Dollars in Thousands, Except Per Share Amounts)
<TABLE>

                                                                                                      (Unaudited)
                                                                                  --------------------------------------------------
                                                                                     Six Months Ended           Three Months Ended
                                                                                        September 30,              September 30,
                                                                                  ----------------------      ----------------------
                                                                                    1995          1994          1995          1994
                                                                                  --------      --------      --------      --------
<S>                                                                               <C>          <C>            <C>            <C>
Interest Income:
    Interest and fees on loans and leases ..................................      $ 11,411      $  9,469      $  5,953      $  4,601
    Interest on investment securities ......................................         2,215         2,037         1,186         1,047
    Interest on federal funds sold .........................................           729           545           240           303
    Interest on interest-bearing deposits with other financial
       institutions ........................................................             4             8             1             3
                                                                                  --------      --------      --------      --------
       Total interest income ...............................................        14,359        12,059         7,380         5,954
                                                                                  --------      --------      --------      --------
Interest expense:
    Interest on deposits ...................................................         6,217         4,426         3,142         2,245
    Interest on securities sold under agreements to repurchase .............         1,035           414           529           234
    Interest on other short-term borrowings ................................            31            16            18             7
    Interest on notes payable ..............................................           213           213           107           107
    Interest on mandatory convertible debentures ...........................            52            42            25            22
                                                                                  --------      --------      --------      --------
       Total interest expense ..............................................         7,548         5,111         3,821         2,615
                                                                                  --------      --------      --------      --------
       Net interest income .................................................         6,811         6,948         3,559         3,339
Provision for possible loan and lease losses ...............................           730         1,640           300         1,160
                                                                                  --------      --------      --------      --------
       Net interest income after provision for possible loan and
           lease losses ....................................................         6,081         5,308         3,259         2,179
                                                                                  --------      --------      --------      --------
Other income:
    Trust fees .............................................................           224           189           112            94
    Loan servicing fees ....................................................           333           342           165           169
    Gain on sales of loans and leases ......................................           172            57            81            42
    Service charges on deposit accounts ....................................           536           526           273           275
    Insurance commissions ..................................................           137           167            62            77
    Other ..................................................................           258           339           154           240
                                                                                  --------      --------      --------      --------
       Total other income ..................................................         1,660         1,620           847           897
                                                                                  --------      --------      --------      --------
Other expenses:
    Salaries and employee benefits .........................................         2,793         2,455         1,425         1,089
    Occupancy, net .........................................................           309           258           146           136
    Insurance ..............................................................           194           355            20           181
    Equipment ..............................................................           339           298           177           148
    Data processing ........................................................           263           281           126           138
    Advertising ............................................................           232           177           117            61
    Other operating ........................................................           963           794           472           332
                                                                                  --------      --------      --------      --------
           Total other expenses ............................................         5,093         4,618         2,483         2,085
                                                                                  --------      --------      --------      --------
       Income before income taxes ..........................................         2,648         2,310         1,623           991
Income taxes ...............................................................           877           771           538           325
                                                                                  --------      --------      --------      --------
Net income .................................................................      $  1,771      $  1,539      $  1,085      $    666
                                                                                  ========      ========      ========      ========

Net income available for Common Stock ......................................      $  1,472      $  1,244      $    935      $    518
                                                                                  ========      ========      ========      ========

Earnings per common share:
Primary ....................................................................      $   8.40      $   7.17      $   5.34      $   2.98
                                                                                  ========      ========      ========      ========
Fully diluted ..............................................................      $   5.36      $   4.53      $   3.28      $   1.98
                                                                                  ========      ========      ========      ========

Weighted average common shares outstanding .................................       175,111       173,611       175,111       173,611
                                                                                  ========      ========      ========      ========
Weighted average common and contingently issuable common
    shares outstanding .....................................................       336,873       345,822       335,874       344,162
                                                                                  ========      ========      ========      ========

</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>
                  FINANCIAL SERVICES CORPORATION OF THE MIDWEST

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                (Dollars in Thousands, Except Per Share Amounts)
<TABLE>

                                                                                                      Net
                                                                                                   Unrealized
                                                                                                    Gain on
                                                     Preferred Stock                               Available-
     Six Months Ended                        ------------------------------    Common    Capital    For-Sale   Retained    Treasury
September 30, 1995 (Unaudited)               Class A    Class B    Class C     Stock     Surplus   Securities  Earnings      Stock
------------------------------               --------   --------   --------   --------   --------  ----------  --------    ---------
<S>                                         <C>         <C>        <C>        <C>        <C>       <C>         <C>         <C>

Balance at March 31, 1995 ...............   $  5,000   $    500   $  1,020   $    170   $  2,521   $      0    $ 18,047    $ (5,297)
Net income ..............................          0          0          0          0          0          0       1,771           0
Change in net unrealized gain on
   available-for-sale securities ........          0          0          0          0          0          8           0           0
Cash dividends declared:
   Class A Preferred, $4.62 per share ...          0          0          0          0          0          0        (231)          0
   Class B Preferred, $24.77 per share ..          0          0          0          0          0          0         (25)          0
   Class C Preferred, $18.06 per share ..          0          0          0          0          0          0         (43)          0
   Common, $0.76 per share ..............          0          0          0          0          0          0        (133)          0
                                            --------   --------   --------   --------   --------   --------    --------    --------
Balance at September 30, 1995 ...........   $  5,000   $    500   $  1,020   $    170   $  2,521   $      8    $ 19,386    $ (5,297)
                                            ========   ========   ========   ========   ========   ========    ========    ========

Balance at March 31, 1994 ...............   $  5,000   $    500   $  1,020   $    170   $  2,484   $     84    $ 15,838    $ (5,345)
Net income ..............................          0          0          0          0          0          0       1,539
Change in net unrealized gain on
   available for sale securities ........          0          0          0          0          0        (78)          0           0
Cash dividends declared:
   Class A Preferred, $4.62 per share ...          0          0          0          0          0          0        (231)          0
   Class B Preferred, $20.58 per share ..          0          0          0          0          0          0         (21)          0
   Class C Preferred, $18.06 per share ..          0          0          0          0          0          0         (43)          0
   Common, $0.76 per share ..............          0          0          0          0          0          0        (132)          0
                                            --------   --------   --------   --------   --------   --------    --------    --------
Balance at September 30, 1994 ...........   $  5,000   $    500   $  1,020   $    170   $  2,484   $      6    $ 16,950    $ (5,345)
                                            ========   ========   ========   ========   ========   ========    ========    ========

</TABLE>

See accompanying notes to consolidated financial statements.


<PAGE>
               FINANCIAL SERVICES CORPORATION OF THE MIDWEST

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in Thousands)
<TABLE>
                                                                                                                 (Unaudited)
                                                                                                         --------------------------
                                                                                                              Six Months Ended
                                                                                                                September 30,
                                                                                                         --------------------------
                                                                                                           1995              1994
                                                                                                         --------          --------
<S>                                                                                                      <C>               <C>

Cash Flows From Operating Activities:
Net income .....................................................................................         $  1,771          $  1,539
Adjustments to reconcile net income to net cash provided by operating activities:
  Depreciation and amortization ................................................................              313               324
  Provision for possible loan and lease losses .................................................              730             1,640
  Investment amortization ......................................................................               87               306
  Loans and leases originated for sale .........................................................          (22,791)          (18,578)
  Proceeds on sale of loans and leases .........................................................           21,599            19,459
  Increase in interest receivable ..............................................................             (772)             (137)
  Increase in interest payable .................................................................              375               618
  Decrease in other assets .....................................................................               20                17
  Increase (decrease) in other liabilities .....................................................              557              (812)
                                                                                                         --------          --------

  Net cash provided by operating activities ....................................................            1,889             4,376
                                                                                                         --------          --------

Cash Flows From Investing Activities:
Net decrease in federal funds sold .............................................................           27,800             4,100
Net decrease in interest-bearing deposits with other financial institutions ....................               99               198
Purchase of investment securities held-to-maturity .............................................          (16,076)          (18,403)
Proceeds from maturity or call of investment securities held-to-maturity .......................            7,000             5,865
Purchase of investment securities available-for-sale ...........................................           (5,006)             --
Proceeds from maturity or call of investment securities available-for-sale .....................             --              11,000
Net increase in loans and leases ...............................................................          (26,847)          (11,697)
Other investing activities, net ................................................................           (1,957)             (311)
                                                                                                         --------          --------

Net cash used in investing activities ..........................................................          (14,987)           (9,248)
                                                                                                         --------          --------

Cash Flows From Financing Activities:
Net increase in deposits .......................................................................            5,935             7,378
Net increase (decrease) in short-term borrowings ...............................................            6,801            (2,643)
Proceeds from other borrowings .................................................................            8,937             5,284
Payments on other borrowings ...................................................................           (9,773)           (4,435)
Cash dividends paid on Preferred Stock .........................................................             (299)             (295)
Cash dividends paid on Common Stock ............................................................             (133)             (132)
                                                                                                         --------          --------
Net cash provided by financing activities ......................................................           11,468             5,157
Net increase (decrease) in cash and due from banks .............................................           (1,630)              285
Cash and due from banks at the beginning of the year ...........................................           13,955            11,484
                                                                                                         --------          --------

Cash and due from banks at the end of the period ...............................................         $ 12,325          $ 11,769
                                                                                                         ========          ========
</TABLE>
See accompanying notes to consolidated financial statements.


<PAGE>
                  FINANCIAL SERVICES CORPORATION OF THE MIDWEST
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   Interim Financial Statements - The accompanying unaudited consolidated 
     financial statements  have been prepared in accordance with the rules and 
     regulations of the Securities and Exchange Commission. Certain information
     and footnote disclosures   normally  included  in  financial   statements
     prepared  in accordance  with  generally  accepted   accounting   
     principles  have  been condensed  or  omitted  pursuant  to  such  rules  
     and  regulations.  These consolidated  financial  statements  should be 
     read in conjunction with the consolidated  financial statements and notes 
     thereto contained in Financial Services  Corporation of the Midwest's  
     ("FSCM") Form 10-KSB for the fiscal year  ended  March  31,  1995,  filed
     with  the  Securities  and  Exchange Commission.

     In  the  opinion  of  management  of  FSCM,  the  accompanying   unaudited
     consolidated  financial  statements contain all adjustments  (consisting of
     only normal recurring  accruals)  necessary to present fairly the financial
     position  of FSCM,  its  results of  operations  and its cash flows for the
     interim periods presented.  Interim results are not necessarily  indicative
     of the results to be expected for the full year.


2.   Supplemental Disclosures of Cash Flow Information - Cash paid for:



     (Dollars in Thousands)                             1995               1994
     ---------------------                             ------             ------

     Interest .................................        $7,173             $4,492
     Income taxes .............................           675              1,270

3.   Earnings Per Common Share Data - The following  information was used in the
     computation  of  earnings  per  common  share on both a  primary  and fully
     diluted basis for the respective six and three month periods.
<TABLE>

                                                                               Six Months Ended              Three Months Ended
                                                                                 September 30,                   September 30,
                                                                          -------------------------       --------------------------
                (Dollars in Thousands)                                      1995            1994           1995             1994
                ----------------------                                    ---------       ---------       ---------       ----------
<S>                                                                       <C>             <C>             <C>             <C>

Net income .........................................................      $   1,771       $   1,539       $   1,085       $     666
Accrued preferred dividends ........................................           (299)           (295)           (150)           (148)
                                                                          ---------       ---------       ---------       ---------

    Primary earnings ...............................................          1,472           1,244             935             518
Accrued convertible preferred dividends ............................            299             295             150             148
Mandatory convertible debentures interest expense,
    net of tax .....................................................             34              28              17              15
                                                                          ---------       ---------       ---------       ---------

    Fully diluted earnings .........................................      $   1,805       $   1,567       $   1,102       $     681
                                                                          =========       =========       =========       =========

Weighted average common shares outstanding .........................        175,111         173,611         175,111         173,611

Weighted average common shares issuable upon conversion of:
    Class A Preferred Stock1 .......................................         76,651          87,100          75,652          85,440
    Class B Preferred Stock2 .......................................         11,111          11,111          11,111          11,111
    Class C Preferred Stock2 .......................................         24,000          24,000          24,000          24,000
    Mandatory convertible debentures2 ..............................         50,000          50,000          50,000          50,000
                                                                            -------         -------         -------         -------
        Weighted average common and contingently issuable
             common shares outstanding .............................        336,873         345,822         335,874         344,162
                                                                            =======         =======         =======         =======
</TABLE>
[FN]
1 The Class A Cumulative  Convertible  Preferred Stock cannot be
  converted into Common Stock until on or after December 1, 2002.
2 The Class B and C Preferred Stock and the mandatory convertible debentures 
  are convertible at the option of the holders.  The holders of the Class B and
  C Preferred Stock and certain holders of the mandatory convertible debentures
  have consented to provide FSCM with a ninety day notice prior to the 
  conversion of their securities and allow for the obtainment of any necessary 
  regulatory approval or legal opinion.

No mandatory  convertible  debentures or Preferred  Stock were converted to
common shares during the periods presented.
<PAGE>
                  FINANCIAL SERVICES CORPORATION OF THE MIDWEST
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

Business Development

     In June 1995,  management of THE Rock Island Bank  ("TRIB"),  FSCM's wholly
owned bank subsidiary,  submitted  applications to the Office of the Comptroller
of the Currency ("OCC") for permission to: 1) become a national association,  2)
relocate the head office of the new national association to Bettendorf, Iowa, 3)
maintain the former head office in downtown  Rock  Island,  Illinois as a branch
office,  4) retain  existing  branch offices in Rock Island and East Moline,  5)
practice trust powers in both Illinois and Iowa,  and 6) increase  investment in
fixed assets.  Preliminary approval was received from the OCC in August 1995. In
September  1995,  an option was  exercised  to  acquire a facility  for the head
office at 3120  Middle  Road,  Bettendorf,  Iowa.  On  November  1,  1995,  TRIB
officially  became THE Rock Island  Bank,  National  Association  and opened its
Bettendorf office.

It is one of TRIB's goals to offer  convenient  retail banking  services to
both its  Illinois and Iowa Quad Cities  customers.  TRIB  currently  services a
bi-state market area; however, due to the lack of customer convenience caused by
restrictive  interstate retail deposit regulations,  a disproportionally  higher
level of lending  activity  than retail  deposit  activity  currently  exists in
TRIB's Iowa customer base.  Management  anticipates that with the opening of the
Bettendorf office, retail deposit activity will increase.

Results of Operations

Overview

Net income for the six and three  months ended  September  30, 1995 equaled
$1,771,000  and  $1,085,000,  or $5.36 and $3.28 per  common  share,  on a fully
diluted income basis. The previous year's six and three month income levels were
significantly less at $1,539,000 and $666,000 and $4.53 and $1.98, respectively.

The  efficiency  ratio  is  comprised  of  pre-tax  recurring  non-interest
expense,  excluding the provision for possible loan and lease losses, divided by
the sum of net interest income and recurring  other income.  This ratio measures
the coverage of  operating  expenses by net  interest  and other  income.  A 55%
benchmark is used by the  industry to measure  acceptable  performance,  and, in
comparison,  a lower percentage is more favorable.  FSCM's efficiency ratios for
the six  months  ended  September  30,  1995  and 1994  were  60.1%  and  53.9%,
respectively.  Another  significant  ratio,  the  overhead  ratio,  measures the
coverage of  operating  expenses  net of other  income  divided by net  interest
income.  An  acceptable  performance  benchmark of 45% is used,  and again it is
desirable to operate at or below the benchmark.  FSCM's  overhead ratios for the
six months ended September 30, 1995 and 1994 were 50.4% and 43.1%, respectively.
Both  the  efficiency  and  overhead  ratios  were  negatively  impacted  by the
decreased  net  interest  margin and the  increased  other  expenses  in 1995 as
compared to 1994. These changes, as well as other changes, are discussed in more
detail in the following sections.

The increase in net income between  periods  ending  September 30, 1995 and
1994 resulted from net changes in the following income and expense categories:

                                                           Change in Income
                                                         ----------------------
                                                                         Three
                (Dollars in Thousands)                   Six Months      Months
                ----------------------                   ----------     -------

Interest income ......................................     $ 2,300      $ 1,426
Interest expense .....................................      (2,437)      (1,206)
                                                           -------      ------- 
Net interest income ..................................        (137)         220
Provision for possible loan and lease losses .........         910          860
Other income .........................................          40          (50)
Other expenses .......................................        (475)        (398)
Income taxes .........................................        (106)        (213)
                                                           -------      -------
Net decrease in income ...............................     $   232      $   419
                                                           =======      =======

Net Interest Income

Even though net interest  income for the three months ended  September  30,
1995 of $3,559,000  surpassed the 1994's three month income by $220,000,  1995's
six month net interest  income of $6,811,000  trailed 1994's income by $137,000.
Loan and lease fees of $703,000 and $747,000 for the six months ended  September
30,  1995 and 1994,  respectively,  were  included  in net  interest  income.  A
one-time  $251,000 fee  generated by a short-term  lease  financing  arrangement
during the first fiscal quarter was included in 1994's loan fees.

<PAGE>
                  AVERAGE BALANCE AND INTEREST RATE ANALYSIS
<TABLE>


                                                                                        Six Months Ended
                                                         ---------------------------------------------------------------------------
     (Dollars in Thousands)                                         September 30, 1995                   September 30, 1994
     ---------------------------------                   -----------------------------------  --------------------------------------
                                                                                     Average                                 Average
                                                          Average                    Annual    Average                        Annual
         ASSETS                                           Balance       Interest      Rate     Balance       Interest          Rate 
         ------                                           --------      --------     -------   --------      --------        -------
<S>                                                       <C>           <C>          <C>       <C>           <C>             <C> 
Interest-bearing deposits with other
  financial institutions ...........................      $    133      $      4       6.02%   $    369      $      8          4.34%
Investment securities ..............................        78,112         2,215       5.67      81,210         2,037          5.02
Federal funds sold .................................        24,367           729       5.98      25,830           545          4.22
Loans and leases, net1 .............................       219,009        11,411      10.42     182,683         9,469         10.37
                                                          --------      --------      -----    --------      --------         -----
  Total interest-earning assets ....................      $321,621        14,359       8.93    $290,092        12,059          8.31
                                                          ========      --------               ========      -------- 
                     LIABILITIES    
                     -----------

Savings deposits ...................................      $ 74,161           927       2.50    $ 97,381         1,277          2.62
Time deposits ......................................       168,852         5,290       6.27     134,695         3,149          4.68
  Federal funds purchased ............................          19             1      10.53           0             0             0
  Securities sold under agreements to
    repurchase .......................................      37,292         1,035       5.55      21,283           414          3.89
  Other short term borrowings ........................       1,055            30       5.69         822            16          3.89
  Notes payable ......................................       5,000           213       8.52       5,000           213          8.52
  Mandatory convertible debentures ...................       1,250            52       8.32       1,250            42          6.72
                                                          --------      --------               --------      --------             
    Total interest bearing liabilities ...............    $287,629         7,548       5.25    $260,431         5,111          3.93
                                                          ========      --------               ========      --------
  Net interest income ................................                  $  6,811                             $  6,948
                                                                        ========                             ========
  Net interest margin (net interest income
    divided by average total interest
    earning assets) ..................................                                 4.24%                                   4.79%
                                                                                      =====                                   ======
</TABLE>
[FN]
1  Nonaccruing loans and leases are included in the average balance.


                           INTEREST VARIANCE ANALYSIS
<TABLE>
                                                                                                      Six Months Ended
                                                                                          September 30, 1995 vs. September 30, 1994
                                                                                          -----------------------------------------
                                                                                                     Increase (Decrease)
                                                                                                      Due to Change in1
                                                                                          ------------------------------------------
                                                                                           Average         Average           Total
             (Dollars in Thousands)                                                        Balance           Rate           Change
             ----------------------                                                       --------         -------          --------
<S>                                                                                       <C>              <C>              <C>
Interest income:
   Interest-bearing deposits with other financial institutions ..................         $    (5)         $     1          $    (4)
   Investment securities ........................................................             (78)             256              178
   Federal funds sold ...........................................................             (31)             215              184
   Loans and leases .............................................................           1,883               59            1,942
                                                                                          -------          -------          -------
       Total interest income ....................................................           1,769              531            2,300
                                                                                          -------          -------          -------
Interest expense:
   Savings deposits .............................................................            (304)             (46)            (350)
   Time deposits ................................................................             799            1,342            2,141
   Federal funds purchased ......................................................               0                1                1
   Securities sold under agreements to repurchase ...............................             311              310              621
   Short-term borrowings ........................................................               5                9               14
   Notes payable ................................................................               0                0                0
   Mandatory convertible debentures .............................................               0               10               10
                                                                                          -------          -------          -------
       Total interest expense ...................................................             811            1,626            2,437
                                                                                          -------          -------          -------

Change in net interest income ...................................................         $   958          $(1,095)         $  (137)
                                                                                          =======          =======          ======= 
</TABLE>
[FN]
     1 The change in interest  due to the volume and rate has been  allocated to
the change in average  rate.  Nonaccruing  loans and leases are  included in the
average  balance.  Loan and lease fees of $703 and $747 for the six months ended
September 30, 1995 and 1994,  respectively,  are included in interest  income on
loans and leases.
<PAGE>

Interest-earning assets increased $31.5 million in average balances between
September  1995's  and  1994's  six  month  periods,  primarily  as a result  of
increases in net loans and leases. The yield on the interest-earning assets rose
62 basis points to 8.93% from 8.31% for the  respective  1995 and 1994  periods.
Similarly, the six month average  interest-bearing  liability balances increased
$27.2 million  between the periods,  primarily in the areas of time deposits and
securities  sold under  agreements to repurchase.  The cost of  interest-bearing
liabilities increased  significantly by 132 basis points to 5.25% from 3.93%. As
a result, September 1995's net interest margin of 4.24% for the six months ended
trailed 1994's margin of 4.79%.

Composition  of  the  interest-bearing  liabilities  reflected  substantial
shifts  between  years from lower cost  savings  deposits  to more  aggressively
priced time  deposits.  The intense local  competition  for funds  resulted from
strong loan demand and consequently led to a higher cost of funds. Approximately
$20  million  of the  total  growth in time  deposit  balances  resulted  from a
February 1995 promotion of 8% 18-month  certificates of deposit.  As of November
1, 1995, 18-month  certificates of deposit are priced at 5.30% annual percentage
yield.  

September  1995's six month net interest  margin of 4.24% reflected a 73
basis points  increase  from the June 1995's  three month  margin of 3.51%.  The
improvement  primarily  resulted from a shift from lower yielding  federal funds
sold  to  higher  yielding  loan  investments.    

Provision for Possible

Loan and Lease  Losses The  amount of the  provision  was based on  management's
assessment  of the adequacy of the  allowance for possible loan and lease losses
in relation to both non-performing and total loans and leases  outstanding.  The
provision,  which  totaled  $730,000  and  $300,000 for the six and three months
ended September 30, 1995,  respectively,  was considerably  less than the 1994's
provisions  of  $1,640,000  and  $1,160,000,  respectively.  The increase in the
September 1994  provision was due to a one-time  $953,000 loan  charge-off  that
related to certain financed  equipment leases  associated with business entities
and  individuals  suspected of fraud.  The allowance,  stated as a percentage of
non-performing loans and leases, equaled 151.43% and 257.50% as of September 30,
1995 and 1994,  respectively.  Such ratio for the  Comparative  Peer Group (Bank
Holding  Companies in the seventh  Federal  Reserve  District with  consolidated
assets between $300 million and $500 million)  equaled 382.01% (as of June 1995,
the most recent data available).  Although,  FSCM's ratio is significantly  less
than  that of its peer  group,  management  is  satisfied  that the level of the
allowance  is adequate to provide  for future  losses.  

During the six and three months ended September 30, 1995 total  charge-offs
equaled  $979,000  and  $112,000,  and total  recoveries  equaled  $392,000  and
$220,000, respectively.  During 1994, the six and three months' charge-offs were
$3,355,000  and  $1,786,000,  and the recoveries  were  $1,540,000 and $244,000,
respectively.

Other Income 

     Other income  totaled  $1,660,000 and $847,000 for the six and three months
ended September 30, 1995, respectively, an increase of $40,000 and a decrease of
$50,000 from the respective 1994 periods.  An increase between years in gains on
sales of loans and leases of $115,000 for the six month period  represented  the
majority of other income  growth.  For the three month  comparisons,  a $100,000
one-time  gain was  recognized  during  the second  fiscal  quarter in 1994 that
related to a sale of  equipment  previously  lease  financed  by TRIB to a third
party.

It is anticipated  that the volume of originations in residential  mortgage
loans will continue to surpass that experienced  during the previous fiscal year
and result in favorable income comparisons.  However, next quarter's residential
mortgage loan fee income,  as compared to the current  quarter's  income,  could
decrease due to seasonal  fluctuations.  Insurance  commissions are projected to
continue  strong but lower  than  1994's  income  levels  due  primarily  to the
increase in provision  for  potential  future  refunds of accident and health or
credit life insurance premiums.

<PAGE>

Other Expenses 

Salary and employee benefits, which represented over 50% of the total other
expenses,  increased to $2,793,000  and  $1,425,000 for the six and three months
ended September 30 ,1995, respectively,  from $2,455,000 and $1,089,000, for the
similar 1994 periods. Stated in terms of full-time equivalent employees,  1995's
six month salary expense represents an average of $17,000 per employee (based on
162 full-time  equivalent  employees) an increase over 1994's salary  expense of
$15,000 per employee (based on 161 full-time equivalent employees).  FSCM's Peer
Group average equaled $16,000 per employee (based on June 1995 information).

The increase between fiscal years in occupancy expense, $51,000 and $10,000
for the respective six and three month periods,  primarily  reflected  increased
costs  associated  with the  maintenance  and  rental of two  temporary  banking
facilities for TRIB's Hilltop and East Moline office sites.

In September  1995,  TRIB  received a $167,000  refund from the Federal  Deposit
Insurance  Corporation  ("FDIC").  Premiums,  that had been  paid at the rate of
$0.23 per $100 of deposits during June through September 1995, were reduced to a
rate of $0.04 per $100 of deposits.  The refund reduced 1995's insurance expense
which totaled $194,000 and $20,000 for the respective six and three months ended
as opposed to 1994's expense of $355,000 and $181,000, respectively.

Other  miscellaneous  operating  expenses totaled $963,000 and $472,000 for
1995's respective six and three month periods,  as compared to 1994's respective
expenses  of  $794,000  and  $332,000.  Included  in 1995  expenses  were  costs
associated  with the  employment  of a  national  consulting  firm to  perform a
bank-wide  "best  practices"   review  of  operational   functions  and  systems
structure.  From this review, management anticipates improved financial services
and operational  performance  through:  (1) restructured fees that recognize the
value of provided services,  (2) reengineered tasks that promote service quality
and productivity,  (3) the introduction of more efficient  technology to support
services,  and (4)  ongoing  management  reports  to  monitor  progress  towards
benchmark  objectives.  In addition,  during the six months ended  September 30,
1995,  $136,000 has been accrued for  anticipated  expenses  associated with the
bank facilities expansions at the Hilltop and Bettendorf office locations.

Income Taxes

The  increase  between  fiscal years in income tax expense for both six and
three month periods primarily  reflects  increased income levels  experienced in
1995. The effective tax rate approximated 33% for all periods presented.

Financial Condition

Overview

Assets  totaled  $351,633,000  as of September  30, 1995, up $14 million or
4.2% from March  1995's  balance of  $337,454,000.  Combined  with a $28 million
decrease in federal funds sold, the  distribution  of the asset growth  included
increases of $14 million in investment  securities totaling  $85,830,000 and $27
million in net loans and leases totaling $235,553,000 as of September 30, 1995.

Funding for such asset growth was derived primarily from growth in deposits
of $5.9 million and securities sold under agreements to repurchase  ("repurchase
agreements") of $4.8 million.

Investments

During  the six  months  ended  September  30,  1995,  total  purchases  of
$21,082,000 in fixed-rate agency instruments were partially offset by $7,000,000
in proceeds from security  maturities or calls.  Of the  investments  purchased,
$4,992,000 were classified as available-for-sale for liquidity purposes.

Investments in structured  notes with step-up rate and callable  provisions
still comprised 49% of the total investment  security  portfolio as of September
30, 1995. These investments, which management classified as held-to-maturity due
to  the  underlying  characteristics  of  the  instruments,  have  performed  as
anticipated. As market interest rates rose, the securities' interest rates moved
up which  resulted in improved  investment  yields and  minimized  the loss from
market  value  declines  which  would  have been  experienced  with  fixed  rate
instruments that had similar maturity dates.

<PAGE>


Loans and Direct Financing Leases

Growth in loans between  September and March 1995 occurred fairly evenly in
most categories with commercial loans of $6,649,000,  residential mortgage loans
of $4,952,000, real estate construction loans of $4,226,000, commercial mortgage
loans of $8,461,000 and consumer  loans of $4,419,000.  Aiding the growth in the
consumer  loan area was the  initiation  in May 1995 of a new indirect  consumer
loan  program.  It is  anticipated  that this  particular  program will generate
between $1 million to $1.5 million in new business per month.  Such overall loan
growth reflects TRIB's  continued  strong  commitment to service the Quad-Cities
market.

                           LOAN AND LEASE DISTRIBUTION

                                                           Sept. 30,   March 31,
                (Dollars in Thousands)                       1995        1995
                ---------------------                      ---------   ---------

Commercial, financial and agricultural ...............     $ 80,883     $ 74,234
Direct financing leases ..............................        5,608        6,863
Real  estate:
    Residential mortgage1 ............................       63,438       58,486
    Construction .....................................       18,779       14,553
    Commercial mortgage ..............................       59,990       51,529
Consumer, not secured by a real estate mortgage ......       10,830        6,411
                                                           --------     --------
          Total loans and leases .....................     $239,528     $212,076
                                                           ========     ========
[FN]
1  Includes first mortgages pending  conclusion of their sale to the Federal
Home  Loan  Mortgage  Corporation  ("FHLMC"),   the  Federal  National  Mortgage
Association  ("FNMA") and the Illinois Housing  Development  Authority ("IHDA"),
home equity lines of credit,  home  improvement  loans,  and consumer  loans for
which junior liens were taken as primary and secondary sources of security.

Premises, Furniture and Equipment

As of September 30, 1995,  fixed asset  investments  totaled  $4,862,000 or
1.4% of total assets, a net increase of $1,239,000 since March 1995.

The September 1995 purchase of the  Bettendorf,  Iowa office  comprised the
majority of the increase since March 1995 in this  category.  This $709 thousand
purchase  consisted  of  land,  building  and  miscellaneous   equipment.   Upon
remodeling the office,  installing  wiring for computer and telephone lines, and
equipping the office with furniture and computer terminals, it is estimated that
an additional $250 thousand will be invested by December 31, 1995.

Construction of the enlarged branch office at 18th Avenue (Hilltop) in Rock
Island,  Illinois  is nearing  completion.  Since  March  1995,  a total of $525
thousand  has  been  invested  into  the  project.  It is  estimated  that  upon
completion in December  1995, a total of $1.5 million will have been invested to
construct, furnish and equip the office.

Construction  of a permanent  office at TRIB's East Moline  branch site
has been deferred until the 1996 construction season.

Management  has  commenced  the   installation  of  new  computer   support
technology to support  TRIB's  operations.  When  completed in the fourth fiscal
quarter ending March 1996,  check  processing and  laser-printer  equipment will
replace  14-year old equipment  which will speed daily  operations and result in
easier-to-read customer statements.  Certain paper reports will be eliminated by
using  optical  storage for the  retrieval  of  management  information.  TRIB's
existing local area network ("LAN") will be supplemented  with branch office LAN
installations and will be  interconnected in a wide area network ("WAN").  It is
estimated  that up to $600  thousand  will be spent to acquire and install these
systems.

Although the considerable  fixed asset  investments in 1995 will reduce the
amount of  interest-earning  assets  and  increase  operating  expenses  through
additional facility expense allocations, it is anticipated that the reinvestment
of the  additional  funds  garnered  through  the  expanded  office  sites  will
gradually offset the short-term negative impact on earnings.





<PAGE>



Deposits,  Securities  Sold Under  Agreements to Repurchase  and Short-Term
Borrowings

Deposit  growth  centered in time deposits  which  increased $10 million to
$172,558,000   as  of  September  30,  1995  (up  6.2%  from  March's  total  of
$162,488,000)  and offset  slight  balance  decreases in demand  accounts  ($1.7
million) and savings accounts ($2 million). Repurchase agreements increased $4.8
million (14.5%) to total $38,202,000 as of September 30, 1995.

Repurchase agreements contain two different types of instruments. One has a
term  maturity with a fixed  interest rate while the other has a daily  maturing
with a floating interest rate. Growth in this category has primarily centered in
the  floating  rate,  daily  maturity  instrument.  Based  on  past  experience,
management  considers this category to be a relatively  stable source of funding
for TRIB.  Currently,  the Financial  Standards  Accounting Board ("FASB"),  the
primary  accounting  body which  establishes  standards  that  define  generally
accepted accounting  principles ("GAAP"),  is reviewing the accounting treatment
for repurchase agreement instruments.  Dependent upon the outcome of its review,
the  characteristics  or continued  offerance  by TRIB of this product  could be
altered.
        
Capital Resources

FSCM's capital, as measured by standards established by the federal banking
regulators,  exceeded  those defined for  "well-capitalized"  institutions.  The
table below sets forth FSCM's  ratios as of September  30, 1995,  as well as the
ratios  for   "well-capitalized"   institutions   and  the  minimum   regulatory
requirements. CAPITAL RATIOS

                                                       Regulatory Requirements
                                                       -----------------------
                                                                    Well
                                                 FSCM   Minimum  Capitalized
                                                ------  -------  -----------
    Risk-based capital ratios:
       Tier 1 Capital .......................    9.34%    4.00%      6.00%
       Total Capital ........................   12.84     8.00      10.00
    Leverage ................................    6.51     3.00       5.00

Liquidity

In March 1995,  TRIB was approved for  membership  to the Federal Home Loan
Bank of Chicago ("FHLB"). Such membership was requested in order to provide TRIB
with an additional  source of liquidity and a potential  funding  source for new
real estate loan products.  Advances from the FHLB would be on a  collateralized
basis.  As of the end of  September  1995,  there were no advances  outstanding;
however,  approximately  $33  million  could  have been  advanced  under  FHLB's
operating
guidelines.

Other actions taken by management to strengthen  liquidity  sources include
the  office  expansion  into  both  East  Moline  and into  Bettendorf,  and the
construction of the enlarged  Hilltop branch office in Rock Island.  These fixed
asset  investments  will provide better access to the retail markets and thereby
should increase TRIB's overall market share.

Federal  fund  purchase  lines  have also  been  established  with  several
correspondent banks to cover short-term funding needs if they should arise.

As of September 30, 1995,  TRIB's ratio of net loans and leases to deposits
and repurchase  agreements  increased to 74.6% from March 1995's level of 68.3%.
However,  the difference  between interest rate sensitive assets and liabilities
stated as a percentage of total assets (the "gap") for various time periods from
90 days  through  three years were  relatively  balanced  fluctuating  less than
plus/minus five percent indicating a relatively  controlled  interest rate risk
exposure.




<PAGE>



                 FINANCIAL SERVICES CORPORATION OF THE MIDWEST

Part II - Other Information and Signatures 

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

     a) The Annual Meeting of Stockholders was held August
24,  1995.  
     b) The names of the  directors  who were  re-elected  at the  Annual
Meeting were: 
          1. Benjamin D. Farrar,  Jr. 
          2. Perry B. Hansen
          3. Douglas M. Kratz
          4. John T.  Kustes 
     c) Details of matters  voted upon:  
<TABLE>
      
                                                                                               Votes Casted
                                                                       -------------------------------------------------------------
                                                                         For             Against           Withheld      Abstentions
                                                                       -------           -------           --------      -----------
<S>                                                                    <C>               <C>               <C>           <C>

For the election of directors:
     Benjamin D. Farrar, Jr ................................           151,210               0                 0            1,171
     Perry B. Hansen .......................................           151,210               0                 0            1,171
     Douglas M. Kratz ......................................           151,210               0                 0            1,171
     John T. Kustes ........................................           151,210               0                 0            1,171

For the appointment of McGladrey &
     Pullen, LLP as FSCM's independent
     accountants for the fiscal year
     ending March 31, 1996 .................................           151,134              76                 0            1,171
</TABLE>

     d) Not  applicable  

Item 6.  Exhibits and  Reports  on Form 8-K  

     Reports on Form 8-K 
     ------------------- 

     No reports on Form 8-K were filed for the quarter ended September 30, 1995.

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.



                                   FINANCIAL SERVICES CORPORATION OF THE MIDWEST


Date:  November 13, 1995           By:   /S/ Douglas M. Kratz
                                   ---------------------------------------------
                                                                Douglas M. Kratz
                                                  President, CEO, CFO, Secretary


                                   By:   /S/ Jean M. Hanson
                                   ---------------------------------------------
                                                                  Jean M. Hanson
                                          Controller, (Chief Accounting Officer)