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

                                    Form 10-Q



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

               For the quarterly period ended: September 30, 1997

                         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 of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


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

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


Indicated  by check  mark  whether  the  registrant  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [ X ] No [ ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
Common Stock, as of the latest practicable date:
Common Stock, $.50 Par Value, 195,213 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, 
                          1997 and March 31, 1997          

                          Consolidated Statements of Income --
                            Six and Three Months Ended September 30, 
                            1997 and 1996                               

                           Consolidated Statements of Stockholders' 
                             Equity -- Six Months Ended September 30, 
                             1997 and 1996  

                          Consolidated Statements of Cash Flows --
                            Six Months Ended September 30, 1997
                            and 1996

                          Notes to Consolidated Financial Statements    

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


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,
                                                                                             1997         1997
                                                                                         -------------  ---------
<S>                                                                                      <C>            <C>  

ASSETS
Cash and due from banks ................................................................   $  18,568    $  16,306
Interest-bearing deposits with other financial institutions ............................          58          131
Investment securities:
    Held-to-maturity (approximate market value September 30, 1997-$33,613 and
        March 31, 1997-$39,502) ........................................................      33,506       39,805
    Available-for-sale (amortized cost September 30, 1997-$88,149 and
            March 31, 1997-$83,336) ....................................................      88,521       82,475
Federal funds sold .....................................................................      26,300          800

Loans and direct financing leases ......................................................     307,472      296,470
    Less:  Allowance for possible loan and lease losses ................................      (6,290)      (5,442)
                                                                                           ---------    ---------
        Total loans and leases, net ....................................................     301,182      291,028

Premises, furniture and equipment, net .................................................       5,298        5,496
Accrued interest receivable ............................................................       3,006        2,969
Other real estate, net .................................................................          82          594
Other assets ...........................................................................       6,445        6,065
                                                                                           ---------    ---------
        Total assets ...................................................................   $ 482,966    $ 445,669
                                                                                           =========    =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
    Noninterest-bearing demand .........................................................   $  42,127    $  36,785
    Interest-bearing:
        N.O.W. accounts ................................................................      35,241       23,575
        Savings ........................................................................      36,714       37,777
        Insured money market ...........................................................      39,181       38,862
        Other time .....................................................................     256,379      224,892
                                                                                           ---------    ---------
        Total deposits .................................................................     409,642      361,891
Accounts payable and accrued liabilities ...............................................       6,195        5,330
Securities sold under agreements to repurchase .........................................      23,593       38,154
Other short-term borrowings ............................................................       2,000        1,500
Notes payable ..........................................................................      10,000       10,000
Mandatory convertible debentures .......................................................       1,250        1,250
                                                                                           ---------    ---------
        Total liabilities ..............................................................     452,680      418,125
                                                                                           ---------    ---------
Stockholders' equity:
Capital stock:
    Preferred, no par value; authorized, 100,000 shares:
        Class A Preferred  Stock,  stated  value  $1,000 per share;  authorized,
           5,000 shares;  issued and  outstanding:  September  30, 1997 - 5,000
           shares; March 31, 1997- 0 shares ............................................       5,000           --
        Class B Preferred Stock, stated value $500 per share; authorized, 1,000 shares;
           issued and outstanding:  1,000 shares .......................................         500          500
        Class C Preferred Stock, stated value $425 per share; authorized, 2,400 shares; 
           issued and outstanding:  2,400 shares .......................................       1,020        1,020
        Class F Preferred Stock, stated value $100 per share; authorized, 50,000 shares;
           issued and outstanding:  September 30, 1997 - 0 shares; March 31, 1997-
           50,000 shares ...............................................................          --        5,000
    Common, par value $.50 per share; authorized, 600,000 shares;
        issued:  340,662 shares; outstanding:  September 30, 1997 - 175,213 shares;
         March 31, 1997 - 177,711 shares ...............................................         170          170
Capital surplus ........................................................................       2,634        2,634
Net unrealized gain/(loss) on available-for-sale securities, net of taxes ..............         246         (568)
Retained earnings ......................................................................      26,182       24,002
Treasury stock .........................................................................      (5,466)      (5,214)
                                                                                           ---------    ---------
           Total stockholders' equity ..................................................      30,286       27,544
                                                                                           ---------    ---------
        Total liabilities and stockholder's equity .....................................   $ 482,966    $ 445,669
                                                                                           =========    =========
</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)                   (Unaudited)
                                                                               -----------------------       -----------------------
                                                                                  Six Months Ended             Three Months Ended
                                                                                    September 30,                 September 30,
                                                                               -----------------------       -----------------------
                                                                                 1997           1996           1997           1996
                                                                               --------       --------       --------       --------
<S>                                                                            <C>            <C>            <C>            <C> 
Interest income:
    Interest and fees on loans and leases ..............................       $ 14,864       $ 13,385       $  7,457       $  6,800
    Interest on investment securities ..................................          3,755          2,903          1,945          1,470
    Interest on federal funds sold .....................................            359            182            248            110
    Interest on interest-bearing deposits with other financial
      institutions .....................................................              2            129              1             65
                                                                               --------       --------       --------       --------
        Total interest income ..........................................         18,980         16,599          9,651          8,445
                                                                               --------       --------       --------       --------

    Interest on deposits ...............................................          8,997          6,897          4,681          3,500
    Interest on securities sold under agreements to repurchase .........            615          1,268            286            643
    Interest on other short-term borrowings ............................             40             49             24             26
    Interest on notes payable ..........................................            400            191            200             96
    Interest on mandatory convertible debentures .......................             50             49             25             25
                                                                               --------       --------       --------       --------
        Total interest expense .........................................         10,102          8,454          5,216          4,290
                                                                               --------       --------       --------       --------
        Net interest income ............................................          8,878          8,145          4,435          4,155
Provision for possible loan and lease losses ...........................          1,822          1,050            902            525
                                                                               --------       --------       --------       --------
        Net interest income after provision for possible loan
                   and lease losses ....................................          7,056          7,095          3,533          3,630
                                                                               --------       --------       --------       --------
Other income:
    Trust fees .........................................................            250            200            125            100
    Net investment securities gains ....................................             20             --             67             --
    Loan servicing fees ................................................            375            364            192            186
    Gain on sales of loans and leases ..................................            206            180            109             68
    Service charges on deposit accounts ................................            609            553            321            279
    Insurance commissions ..............................................            190            149             74             70
    Other ..............................................................            506            361            196            229
                                                                               --------       --------       --------       --------
        Total other income .............................................          2,156          1,807          1,084            932
                                                                               --------       --------       --------       --------
Other expenses:
    Salaries and employee benefits .....................................          2,666          3,164          1,378          1,570
    Occupancy, net .....................................................            453            424            250            219
    Insurance ..........................................................             66             55             30             27
    Equipment ..........................................................            575            484            298            246
    Data processing ....................................................            419            328            218            156
    Advertising ........................................................            257            230            129            109
    Other operating ....................................................            816          1,043            509            644
                                                                               --------       --------       --------       --------
        Total other expenses ...........................................          5,252          5,728          2,812          2,971
                                                                               --------       --------       --------       --------
        Income before income taxes .....................................          3,960          3,174          1,805          1,591
Income taxes ...........................................................          1,243          1,133            627            590
                                                                               --------       --------       --------       --------
Net income .............................................................       $  2,717       $  2,041       $  1,178       $  1,001
                                                                               ========       ========       ========       ========

Net income available for Common Stock ..................................       $  2,417       $  1,743       $  1,027       $    852
                                                                               ========       ========       ========       ========

Earnings per common share:
    Primary ............................................................       $  13.68       $   9.87       $   5.85       $   4.83
                                                                               ========       ========       ========       ========
    Fully diluted ......................................................       $   8.79       $   6.27       $   3.93       $   3.09
                                                                               ========       ========       ========       ========

Weighted average common shares outstanding .............................        176,635        176,611        175,571        176,611
                                                                               ========       ========       ========       ========
Weighted average common and contingently issuable
     common shares outstanding .........................................        312,927        330,646        303,865        330,299
                                                                               ========       ========       ========       ========
</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/(Loss)
                                                                                                        On
                                                           Preferred Stock                           Available
Six Months Ended                                 ---------------------------------- Common  Capital   For Sale  Retained   Treasury
September 30, 1997 (Unaudited)                    Class A  Class B Class C  Class F  Stock  Surplus  Securities1 Earnings    Stock
                                                 -----------------------------------------------------------------------------------
<S>                                              <C>       <C>     <C>      <C>     <C>     <C>     <C>         <C>        <C>

Balance at March 31, 1997....................    $  ---     $500   $1,020   $5,000   $170    $2,634    $(568)     $24,002   $(5,214)
Net income   ................................       ---      ---      ---      ---    ---       ---      ---        2,717       ---
Change in net unrealized gain/(loss) on
   available-for-sale securities1 ...........       ---      ---      ---      ---    ---       ---      814          ---       ---
Redemption of Class F Preferred..............       ---      ---      ---   (5,000)   ---       ---      ---          ---       ---
Issuance of Class A Preferred................     5,000      ---      ---      ---    ---       ---      ---          ---       ---
Purchase of 2,498 shares of
   Treasury Stock and costs..................       ---      ---      ---      ---    ---       ---      ---          ---      (252)
Cash dividends declared:
   Class A Preferred, $21.33 per share.......       ---      ---      ---      ---    ---       ---      ---         (107)      ---
   Class B Preferred, $23.82 per share.......       ---      ---      ---      ---    ---       ---      ---          (24)      ---
   Class C Preferred, $18.06 per share.......       ---      ---      ---      ---    ---       ---      ---          (43)      ---
   Class F Preferred, $3.30 per share........       ---      ---      ---      ---    ---       ---      ---         (165)      ---
   Common, $1.13 per share ..................       ---      ---      ---      ---    ---       ---      ---         (198)      ---
                                                 ----------------------------------------------------------------------------------
Balance at September 30, 1997................    $5,000     $500   $1,020   $  ---   $170    $2,634    $ 246      $26,182   $(5,466)
                                                 ==================================================================================
                                                                                                      
Six Months Ended  
September 30, 1996 (Unaudited)  

Balance at March 31, 1996....................     $ ---     $500   $1,020   $5,000   $170    $2,574    $(422)     $20,694   $(5,249)
Net income   ................................       ---      ---      ---      ---    ---       ---      ---        2,041       ---
Change in net unrealized gain/(loss) on
   available-for-sale securities1 ...........       ---      ---      ---      ---    ---       ---     (417)         ---       ---
Cash dividends declared:
   Class B Preferred, $23.18 per share.......       ---      ---      ---      ---    ---       ---      ---          (23)      ---
   Class C Preferred, $18.06 per share.......       ---      ---      ---      ---    ---       ---      ---          (43)      ---
   Class F Preferred, $4.62 per share........       ---      ---      ---      ---    ---       ---      ---         (231)      ---
   Common, $1.00 per share ..................       ---      ---      ---      ---    ---       ---      ---         (178)      ---
                                                  ----------------------------------------------------------------------------------
Balance at September 30, 1996................     $ ---     $500   $1,020   $5,000   $170    $2,574       $(839)  $22,260   $(5,249)
                                                  ==================================================================================
<FN>
1 Net of taxes
</FN>
</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,
                                                                                         --------------------
                                                                                           1997        1996
                                                                                         --------    --------
<S>                                                                                      <C>         <C>   
Cash Flows From Operating Activities:
Net income ...........................................................................   $  2,717    $  2,041
Adjustments to reconcile net income to net cash provided by operating activities:
    Depreciation and amortization ....................................................        595         670
    Provision for possible loan and lease losses .....................................      1,822       1,050
    Net gain on sale of investment securities available-for-sale .....................        (20)         --
    Investment amortization, net .....................................................         41         133
    Loans and leases originated for sale .............................................    (27,300)    (18,965)
    Proceeds from sales of loans and leases ..........................................     26,001      27,071
    Gain on sales of loans and leases ................................................       (206)       (180)
    Increase in interest receivable ..................................................        (37)        (97)
    Increase in interest payable .....................................................        512          83
    Decrease in other assets .........................................................       (751)       (366)
    Increase in other liabilities ....................................................        353          95
                                                                                         --------    --------
Net cash provided by operating activities ............................................      3,727      11,535
                                                                                         --------    --------

Cash Flows From Investing Activities:
Net (increase) decrease in federal funds sold ........................................    (25,500)      3,700
Net (increase) decrease in interest-bearing deposits with other financial institutions         73         (81)
Purchase of investment securities held-to-maturity ...................................       (175)    (11,915)
Proceeds from maturity or call of investment securities held-to-maturity .............      6,500      10,000
Purchase of investment securities available-for-sale .................................    (21,828)     (8,604)
Proceeds from maturity or call of investment securities available-for-sale ...........      5,204       6,177
Proceeds from sales of investment securities available-for-sale ......................     11,764          --
Net increase in loans and leases .....................................................    (10,471)    (24,467)
Purchase of premises, furniture and equipment ........................................       (445)       (213)
Other investing activities, net ......................................................        512         314
                                                                                         --------    --------
Net cash used in investing activities ................................................    (34,366)    (25,089)
                                                                                         --------    --------

Cash Flows From Financing Activities:
Net increase in deposits .............................................................     47,751      19,213
Net increase in short-term borrowings ................................................        500         550
Net decrease in securities sold under agreements to repurchase .......................    (14,561)     (1,924)
Redemption of Preferred Stock ........................................................     (5,000)         --
Proceeds from issuance of Preferred Stock ............................................      5,000          --
Treasury Stock purchase and costs ....................................................       (252)         --
Cash dividends paid on Preferred Stock ...............................................       (339)       (297)
Cash dividends paid on Common Stock ..................................................       (198)       (178)
                                                                                         --------    --------
Net cash provided by financing activities ............................................     32,901      17,364
                                                                                         --------    --------

Net increase in cash and due from banks ..............................................      2,262       3,810
Cash and due from banks at the beginning of the year .................................     16,306      14,423
                                                                                         --------    --------
Cash and due from banks at the end of the period .....................................   $ 18,568    $ 18,233
                                                                                         ========    ========
</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-K for the fiscal
     year  ended  March  31,  1997,  filed  with  the  Securities  and  Exchange
     Commission.  Forward-looking  information  contained  in  the  Management's
     Discussion  and  Analysis  section of this report is based on  projections.
     Actual results may differ materially from such information.

     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:

                                                            Six Months Ended
       (Dollars in Thousands)                                September  30,
                                                       -------------------------
                                                        1997               1996
                                                       ------             ------

Interest .................................             $9,590             $8,371
Income taxes .............................              1,621              1,395

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 periods.
<TABLE>

                                                                   Six Months Ended         Three Months Ended
        (Dollars in Thousands)                                      September 30,             September 30,
                                                                ----------------------    ----------------------
                                                                  1997         1996         1997         1996
                                                                ---------    ---------    ---------    ---------
<S>                                                             <C>          <C>          <C>          <C>    
Net income ..................................................   $   2,717    $   2,041    $   1,178    $   1,001
Accrued preferred dividends .................................        (300)        (298)        (151)        (149)
                                                                ---------    ---------    ---------    ---------

Primary earnings ............................................       2,417        1,743        1,027          852
Accrued convertible preferred dividends .....................         300          298          151          149
Mandatory convertible debentures interest expense, net of tax          33           32           17           16
                                                                ---------    ---------    ---------    ---------

Fully diluted earnings ......................................   $   2,750    $   2,073    $   1,195    $   1,017
                                                                =========    =========    =========    =========

Weighted average common shares outstanding1,3 ...............     176,635      176,611      175,571      176,611
Weighted average common shares issuable upon conversion of:
   Class A Preferred Stock2 .................................      18,898           --       37,590           --
   Class B Preferred Stock3 .................................      11,111       11,111       11,111       11,111
   Class C Preferred Stock3 .................................      24,000       24,000       24,000       24,000
   Class F Preferred Stock2 .................................      32,283       68,924        5,593       68,577
   Mandatory convertible debentures3 ........................      50,000       50,000       50,000       50,000
                                                                ---------    ---------    ---------    ---------
      Weighted average common and contingently issuable
         common shares outstanding ..........................     312,927      330,646      303,865      330,299
                                                                =========    =========    =========    =========
<PAGE>


<FN>
    1  FSCM's  Common Stock tender  offer  terminated  in August 1997 with 2,498
       shares of Common Stock  tendered for $90 per share cash. On July 1, 1997,
       FSCM granted  options to acquire 800 shares of Common Stock at a price of
       $100 per share exercisable within the next eight years. These options are
       currently  antidilutive  and have no impact on the  numbers  of  weighted
       average common and contingently issuable common shares outstanding.

    2  In July 1997,  the Class A  Cumulative  Convertible  Preferred  Stock was
       reclassified  to  Class F  Cumulative  Convertible  Preferred  Stock  and
       redeemed in its entirety. Funding for the redemption was provided through
       the private  placement  of $5,000 in new Class A  Cumulative  Convertible
       Preferred  Stock ("Class A Preferred  Stock").  The new Class A Preferred
       Stock is  immediately  convertible,  at the option of the  holders,  into
       41,666 shares of FSCM's Common Stock.

    3  The  Class  B  and  C  Preferred  Stock  and  the  mandatory  convertible
       debentures  ("MCDs") are  convertible  at the option of the holders.  The
       holders of the Class B and C Preferred  Stock and certain  holders of the
       MCDs 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 MCDs or  Preferred
       Stock was  converted to common shares  during the periods  presented.  In
       November  1997,  $500 MCDs were  converted  into 20,000  shares of Common
       Stock.
</FN>
</TABLE>
<PAGE>


                  FINANCIAL SERVICES CORPORATION OF THE MIDWEST
                      MANAGEMENT'S DISCUSSION AND ANALYSIS


Business Development

In May 1997,  FSCM extended a tender offer to all  shareholders of Common Stock.
The offer  terminated  on August 13 with a total of 2,498 shares of Common Stock
exchanged  for $90 cash per share and was  funded,  including  costs of $27,000,
with cash on hand.

In July 1997, FSCM  reclassified  the Class A Cumulative  Convertible  Preferred
Stock to Class F  Cumulative  Convertible  Preferred  Stock  ("Class F Preferred
Stock").  On July 10, 1997, FSCM redeemed the $5 million 9.25% Class F Preferred
Stock at a  redemption  price of $100 per share as  provided in the terms of the
Class F Preferred  Stock.  Funding for the  retirement  of the Class F Preferred
Stock was  provided  through  the  issuance  of $5 million of new 9.25%  Class A
Cumulative  Convertible  Preferred Stock ("Class A Preferred Stock"). Each share
of the Class A  Preferred  Stock has a stated  value of $1,000  per share and is
immediately  convertible,  at the option of the  holder,  into  8-1/3  shares of
Common  Stock.  All of the  Class A  Preferred  Stock was  issued  to  principal
shareholders  of FSCM who are also executive  officers and directors of FSCM and
TRIB.

In  November  1997,  holders of  $500,000 in MCDs  exercised  their  options and
converted the MCDs into 20,000 shares of Common Stock.

Income Statement

Overview

Net income and earnings per fully diluted  common share equaled  $2.717  million
and $8.79,  respectively,  for the six months ended  September  30, 1997, a $676
thousand, or 33.12%, increase above 1996's comparable six month income of $2.041
million and a $2.52 per share increase  above 1996's  earnings per fully diluted
common share of $6.27.  Net income for the three months ended September 30, 1997
and 1996 equaled $1.178 million and $1.001 million,  respectively.  As reflected
in the table below,  the increase in net interest  income  between 1997 and 1996
was  completely  offset by  increased  provisions  for  possible  loan and lease
losses.  The increase in net income  primarily  resulted  from  increased  other
income  and  decreased  other  expenses  which  were  only  partially  offset by
increased  income  taxes.  Further  discussion  relating to these changes can be
found throughout the remaining  Management's  Discussion and Analysis section of
this report.

                                                             Change in Income
                                                           --------------------
                                                            Six          Three
        (Dollars in Thousands)                             Months        Months
                                                           -------      -------
Interest income ......................................     $ 2,381      $ 1,206
Interest expense .....................................      (1,648)        (926)
                                                           -------      -------
Net interest income ..................................         733          280
Provision for possible loan and lease losses .........        (772)        (377)
Other income .........................................         349          152
Other expenses .......................................         476          159
Income taxes .........................................        (110)         (37)
                                                           -------      -------
Net increase in net income ...........................     $   676      $   177
                                                           =======      =======

<PAGE>


The   efficiency  and  overhead   ratios  are  two  commonly  used   performance
measurements.  Both measure the  coverage of  operating  expense by net interest
income.  In the efficiency  ratio,  other income is added to net interest income
and in the overhead  ratio other  income is netted  against  operating  expense.
Lower ratios generally  reflect better  performance and therefore are considered
more  favorable.  FSCM's  ratios as of September  30, 1997 and 1996 and the Peer
Group's  efficiency ratio are presented  below.  FSCM's Peer Group is defined as
bank holding  companies with  consolidated  assets between $300 million and $500
million.  The Peer Group numbers presented here and throughout the report are as
of June 30, 1997-- which is the most recent data  available.  The improvement in
the ratios between the six months  comparative  periods primarily  resulted from
the  combined  effect of  increased  net  interest  income and other  income and
decreased operating expense between periods.

                                                                          FSCM
                                        September 30,  September 30,      Peer
                                           1997            1996           Group
                                       --------------  -------------   ---------

Efficiency Ratio ..................       47.68%           57.56%        62.14%
Overhead Ratio ....................       35.10            48.14            N/A

Net Interest Income

In the following two tables,  various components of interest-earning  assets and
interest-bearing  liabilities  are  identified  and  compared to the prior year.
Average interest-earning assets have increased $68.5 million, or 18.96%, between
years. Similarly, average interest-bearing liabilities have risen $60.8 million,
or  18.58%.   The   difference   between  the  increase  in  growth  of  average
interest-earning  assets and  interest-bearing  liabilities was primarily due to
growth in average  capital and average  noninterest-  bearing  liabilities.  The
interest  rate spread  (the  difference  between  the yield on  interest-earning
assets and the cost of  interest-bearing  liabilities) has narrowed.  The spread
for the six months  ended  September  30, 1997 was 3.62% versus the prior year's
spread of 4.02%.  The tightening of the spread  resulted from both a decrease in
the yield on interest-earning  assets, which dropped to 8.83% for the six months
ended  September 30, 1997 from 9.19% in 1996, and a slight  increase in the cost
of  interest-bearing  liabilities,   which  equaled  5.21%  and  5.17%  for  the
respective periods. The comparative yield and cost for FSCM's Peer Group equaled
8.22% and 4.44%, respectively.

Average  asset  growth  was  primarily  distributed  between  net  loans  (which
increased  $44.8 million),  investments  (which  increased  $22.6 million),  and
federal funds (which  increased  $6.0  million).  The growth in average  federal
funds was  primarily  due to a temporary  excess  liquidity  that  resulted from
deposit  growth  exceeding  new  loan  demand.   Additionally,   the  yields  on
interest-earning  assets increased slightly between periods except for the yield
on loans and leases which decreased 59 basis points to 9.97% in 1997 from 10.56%
the previous year (Peer Group's yield on loans and leases equaled  9.27%).  Loan
and lease fees  included in interest  income  decreased  $387  thousand  between
periods to equal $409 thousand from $796 thousand for the  respective  six month
periods  ended  September  30, 1997 and 1996.  This  decrease was  primarily the
result of increased deferral of loan fees, which will be amortized over the life
of the  related  loans.  The impact of the  decreased  fees in the 1997 yield of
loans and leases was approximately 26 basis points.

Average  liability  growth was  primarily  distributed  between time and savings
accounts which increased $51.5 million and $27.4 million,  respectively, and was
partially offset by a $23.3 million decrease in securities sold under agreements
to repurchase ("repurchase  agreements").  Part of the time deposit increase and
the majority of the decrease in repurchase  agreements  were due to the shift of
$17.5  million in State funds  between  the two types of  accounts.  Further,  a
short-term $11.7 million repurchase agreement issued in January 1997 matured and
was redeemed in May 1997. The cost of  interest-bearing  deposits increased four
basis points  between the  comparative  six month periods to 5.21% from 5.17% as
compared to the Peer Group cost of 4.44%.  Although the  interest  rates on most
liability accounts decreased between periods,  the benefit of the 13 basis point
decrease in cost of time  deposits was  completely  offset by the 58 basis point
increase in cost of savings  deposits.  The resulting  net interest  margin (net
interest income divided by average total  interest-earning  assets) decreased 38
basis  points  between  periods to 4.13% from  4.51%--the  Peer  Group's  margin
equaled 4.62%.

The second  table  further  identifies  the  components  of the  increase in net
interest income.  The net $1.513 million positive  variance from average balance
increases was only partially  offset by the net $780 thousand  negative  average
rate  variance  and  resulted  in the  positive  $733  thousand  increase in net
interest income between six month periods.
<PAGE>


                   AVERAGE BALANCE AND INTEREST RATE ANALYSIS
<TABLE>

                                                                                       Six Months Ended
                                                        ---------------------------------------------------------------------------
    (Dollars in Thousands)                                         September 30, 1997                     September 30, 1996 
                                                        ------------------------------------      ---------------------------------
                                                                                     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 .....................    $       70       $     2      5.71%       $  4,899     $    129       5.27%
    Investment securities ..........................       118,829         3,755      6.32          96,258        2,903       6.03
    Federal funds sold .............................        12,884           359      5.57           6,866          182       5.30
    Loans and leases, net1 .........................       298,166        14,864      9.97         253,412       13,385      10.56
                                                         ---------        ------                  --------     --------
        Total interest-earning assets ..............      $429,949        18,980      8.83        $361,435       16,599       9.19
                                                          ========        ------                  ========     --------

                         LIABILITIES
    Savings deposits................................      $109,203         1,821      3.34        $ 81,851        1,129       2.76
    Time deposits ..................................       240,784         7,176      5.96         189,320        5,768       6.09
    Federal funds purchased.........................            90             3      6.67             203            6       5.91
    Securities sold under agreements to
        repurchase .................................        25,330           615      4.86          48,673        1,268       5.21
    Other short-term borrowings ....................         1,386            37      5.34           1,443           43       5.96
    Notes payable ..................................        10,000           400      8.00           4,500          191       8.49
    Mandatory convertible debentures ...............         1,250            50      8.00           1,250           49       7.84
                                                          --------      --------                  --------     --------
        Total interest-bearing liabilities .........      $388,043        10,102      5.21        $327,240        8,454       5.17
                                                          ========      --------                  ========     --------

    Net interest income ............................                     $ 8,878                               $  8,145
                                                                         =======                               ========
    Net interest margin (net interest income
        divided by average total interest-
        earning assets) ............................                                  4.13%                                   4.51%
                                                                                      ====                                    ====
<FN>
1    Nonaccruing loans and leases are included in the average balance.  Loan and
     lease fees of $409 and $796 for the six months ended September 30, 1997 and
     1996, respectively, are included in interest income on loans and leases.
</FN>
</TABLE>


                           INTEREST VARIANCE ANALYSIS
<TABLE>

                                                                        Six Months Ended
                                                           September 30, 1997 vs. September 30, 1996
                                                           -----------------------------------------
                                                                       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   $  (127)   $    --    $  (127)
    Investment securities .....................................       681        171        852

    Federal funds sold ........................................       160         17        177
    Loans and leases ..........................................     2,364       (885)     1,479
                                                                  -------    -------    -------
       Total interest income ..................................     3,078       (697)     2,381
                                                                  -------    -------    -------

Interest expense:
    Savings deposits ..........................................       377        315        692
    Time deposits .............................................     1,568       (160)     1,408
    Federal Funds purchased ...................................        (3)        --         (3)
    Securities sold under agreements to repurchase ............      (608)       (45)      (653)
    Short-term borrowings .....................................        (2)        (4)        (6)
    Notes payable .............................................       233        (24)       209
    Mandatory convertible debentures ..........................        --          1          1
                                                                  -------    -------    -------
       Total interest expense .................................     1,565         83      1,648
                                                                  -------    -------    -------
Change in net interest income .................................   $ 1,513    $  (780)   $   733
                                                                  =======    =======    =======
<PAGE>


<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
     average  balance.  Loan and lease  fees of $409 and $796 for the six months
     ended  September  30,  1997 and 1996,  respectively,  are  included  in the
     interest income on loans and leases.
</FN>
</TABLE>

Provision for Possible Loan and Lease Losses

The  provision  for possible loan and lease losses  totaled  $1.822  million and
$1.050 million for the respective six month periods ended September 30, 1997 and
1996 and $902 thousand and $525 thousand for the respective three month periods.
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 total
loans and leases and nonperforming loans (those past-due 90 days or more or in a
nonaccrual  status).  The  allowance,  stated as a percentage of  non-performing
loans and leases, equaled 170.78% and 202.46% as of September 30, 1997 and 1996,
respectively.   FSCM's  comparative  Peer  Group  ratio  equaled  274.95%.   The
allowance,  stated as a percentage of total loans and leases,  equaled 2.05% and
1.84% at  September  30, 1997 and 1996,  respectively,  and the Peer Group ratio
equaled 1.34%.  Net  charge-offs for the 1997 and 1996 six month periods totaled
$974 thousand and $822  thousand,  respectively,  and for the  respective  three
month periods totaled $429 thousand and $664 thousand.

Other Income

Other income  totaled $2.156 million and $1.807 million for the six months ended
September  30, 1997 and 1996,  respectively,  an increase of $349  thousand,  or
19.31%, and totaled $1.084 million and $932 thousand for the respective 1997 and
1996 three month periods, an increase of $152 thousand, or 16.31%. Other income,
excluding  net  investment  security  gains,  for the six  months  stated  as an
annualized  percentage  of average  assets  equaled 0.92% and 0.93% for 1997 and
1996, respectively, and was comparable to the Peer Group ratio of 0.95%.

The net investment securities gains of $20 thousand for the six months ended and
$67 thousand for the three months ended  September  30, 1997 was the result of a
$49 thousand  loss from the sale of $11.5  million in agency  securities by TRIB
when  repositioning  the portfolio and a $69 thousand gain from the sale of $283
thousand in financial  institution  stocks by FSCM.  An increase of $95 thousand
between 1997 and 1996 six month periods in syndication  fees on credit financing
arrangements  comprised  the  majority  of the $145  thousand  increase in other
miscellaneous income.

Other Expenses

Other  expenses  totaled  $5.252  million and $5.728  million for the six months
ended and $2.812 million and $2.971 million for the three months ended September
30, 1997 and 1996,  respectively.  The $476 thousand and $159 thousand  decrease
between  respective  six and three month  periods was due primarily to increased
deferral of direct loan related expenses that will be amortized over the life of
the related loans. The increased deferrals, between the comparable six month and
three month periods, reduced salaries and employee benefits by $811 thousand and
$381  thousand,  respectively,  and  reduced  other  operating  expenses  by $91
thousand and $34 thousand,  respectively. Other expense, stated as an annualized
percentage of average  assets,  equaled 2.28% and 2.95% for the respective  1997
and 1996 six month  periods and  compared  favorably  to the Peer Group ratio of
3.19%.  The deferral of direct loan related  expense  favorably  impacted 1997's
ratio by 39 basis points.

The number of full-time  equivalent employees totaled 193 at September 30, 1997,
an  increase  of  12  employees,  or  6.63%,  over  September  1996's  full-time
equivalent total of 181.  Salaries and employee  benefits equaled $2.666 million
and $3.164  million for the 1997 and 1996 six month periods,  respectively,  and
$1.378  million and $1.570  million  for the  respective  three  month  periods.
Annualized  personnel expense,  stated as a percentage of average assets equaled
1.16% and 1.63% for the  respective  periods as compared to the Peer Group ratio
of 1.70%--the impact on 1997's ratio of the aforementioned deferred costs was 35
basis points.

The $91  thousand  increase  in data  processing  expense  between the six month
periods ended September 30, 1997 and 1996 ($62 thousand  between the three month
periods) was  primarily  due to increased  number of accounts  (both deposit and
loan) supported by the  third-party  computer  service  vendor.  Other operating
expense  equaled $816 thousand and $1.043  million for the  respective six month
1997 and 1996  periods and $509  thousand and $644  thousand for the  respective
three  month  periods.  The  reduction  in expense in 1997 as  compared  to 1996
primarily  resulted from the  combination of the previously  discussed  deferred
direct  loan  expense  and  the  acceleration  of  amortization  in 1996 of note
offering  costs due to  prepayment--$140  thousand and $127 thousand for the six
and three month periods.
<PAGE>


Income Taxes

Income taxes totaled  $1.243  million and $1.133  million for the respective six
month periods and $627 thousand and $590 thousand for the respective three month
periods ended September 30, 1997 and 1996. The equivalent  combined  Federal and
State effective tax rates equaled 31.39% and 35.70% for the respective six month
periods  and 34.74%  and 37.08% for the  respective  three  month  periods.  The
reduction in the 1997 effective  rates  primarily  resulted from a $258 thousand
over  accrual  of State  taxes  that was  partially  offset  by a $175  thousand
deferred tax adjustment for the fiscal March 31, 1997 year-end.

Risk Management

Risk management encompasses many different types of risk, including credit risk,
liquidity risk and interest rate risk.  Regulatory  agencies have modified their
examination  procedures  to rate the exposure of financial  institutions  to the
risk by the various  types of risk,  the  direction  of change in the risk,  and
management's ability to monitor and control each type of risk. FSCM utilizes the
expertise of both  on-staff  personnel and outside  consultants  to perform loan
reviews to monitor loan documentation;  ensure compliance with internal policies
and  governmental  regulations;  and maintain the internal  loan and lease watch
list.  Internal audit and compliance staff are also utilized to provide on-going
operational audits and review of regulatory compliance. In addition,  management
continues to cautiously  assess the risks  associated with the potential  future
impact of adverse  changes in the overall  economic  climate and more  stringent
regulatory standards and requirements. An asset/liability committee monitors the
liquidity position of FSCM in order to provide for future liquidity requirements
as well as maintain an acceptable return on assets. Further, computer simulation
modeling is used to assess the  interest  rate  sensitivity  characteristics  of
assets and liabilities and predict possible impacts of new marketing and product
development strategies.

As depicted in FSCM's  Consolidated  Statement of Cash Flows,  the operating and
financing  activities  are  generally  net sources of  liquidity  and  investing
activities  are net uses of  liquidity.  For the six months ended  September 30,
1997,  sources of cash were  primarily  provided by the net increase in deposits
over the reduction in repurchase  agreements  and uses of cash were primarily to
finance  the net  increase  in loans and leases  and,  on a  temporary  basis at
September  1997,  provided for an increase in federal funds sold.  The resulting
net change in cash and due from banks reflected  increases of $2.262 million and
$3.810 million for the six months ended September 30, 1997 and 1996.

Balance Sheet

Overview

Assets  totaled  $483.0  million at  September  30,  1997,  an increase of $37.3
million,  or 8.37%,  from  March's  total of $445.7  million.  The  increase was
primarily  distributed  between net loans and leases ($10.2 million) and federal
funds sold ($25.5 million).  The federal funds sold growth primarily reflected a
temporary  abundance of funds due to deposit  growth  exceeding new loan demand.
Funding growth was provided by the net increase in deposits ($47.8 million) over
the decrease in repurchase agreements ($14.6 million).

Loans and Direct Financing Leases

Loans and leases increased $11.002 million, or 3.71%,  between September 30, and
March 31, 1997. The principal area of growth centered in the consumer  financing
area,  which  increased  $11.7 million and was  primarily  comprised of indirect
financing  arrangements  that TRIB purchased from dealers (e.g.  auto,  boat and
recreational vehicle dealerships) rather than directly financing the consumer. A
$4.9 million  decrease  between  periods in commercial and  commercial  mortgage
lending prompted  management to commence  repayment of some of the correspondent
bank  participations on TRIB originated  credits. In June 1997, TRIB expaned the
residential  mortgage lending program to encompass a more  diversified  group of
borrowers.  All loans generated  under the program are sold without  recourse to
independent  investors.  TRIB's residential mortgage servicing portfolio totaled
$190.6  million and $185.3  million at  September  30, and March 31,  1997.  The
following table presents the September and March 1997  comparative  distribution
of loans and leases.
<PAGE>


                           LOAN AND LEASE DISTRIBUTION

                                                        September 30,  March 31,
        (Dollars in Thousands)                               1997         1997
                                                        -------------  ---------

Commercial, financial and agricultural ...............    $ 89,569     $ 93,502
Direct financing leases ..............................       6,441        5,612
Real  estate:
   Residential mortgage1 .............................      67,414       64,309
   Construction ......................................      30,048       29,790
   Commercial mortgage ...............................      70,721       71,648
Consumer, not secured by a real estate mortgage2 .....      43,279       31,609
                                                          --------     --------
         Total loans and leases ......................    $307,472     $296,470
                                                          ========     ========

1    Includes first  mortgages  pending  conclusion of their sale to the Federal
     National Mortgage Association  ("Freddie Mac"), Fannie Mae 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.  2 Consumer loans,  both direct
     and indirect and credit card plans.

Notes Payable

Notes payable  totaled $10 million at both September 30, and March 31, 1997. The
change between September 30, 1997 and 1996 average balances in notes payable was
due to a November  1996  redemption  of the $4.5  million  8.5% notes  which was
replaced by $10 million 8.0% notes issued the same month.

Capital Resources

As previously discussed under Business Development, in August 1997 FSCM acquired
2,498 shares of Common Stock in a company  sponsored  tender offer at a price of
$90 per share and costs approximating $27,000. Additionally, in July 1997 the $5
million of 9.25%  Class F  Preferred  Stock was  redeemed  and  replaced  with a
private  placement  of $5 million of new 9.25%  Class A  Cumulative  Convertible
Preferred  Stock.  The Class F Preferred Stock was not  convertible  until on or
after December 1, 2002;  however,  the number of Common Stock equivalent  shares
totaled 32,283 shares and 5,593 shares for the six month and three month periods
ended  September  30,  1997,  respectively.  The new Class A Preferred  Stock is
immediately  convertible  at the option of the  holders  into a constant  41,666
shares of FSCM Common Stock.

On July 1, 1997 FSCM granted  options to acquire 800 shares of Common Stock at a
price of $100 per share  exercisable,  subject to certain vesting  requirements,
within  the next eight  years to certain  management  officials.  Further,  FSCM
currently  anticipates,  depending  upon the financial  performance  of FSCM and
TRIB, granting  additional stock options to other management  officials later in
the fiscal year.  These options were granted  under the 1996 Combined  Incentive
and  Nonstatutory   Stock  Option  Plan  that  was  ratified  by  FSCM's  common
stockholders  at the August 1996 annual  meeting which provides for the issuance
of  options  to  acquire  a total of  20,000  shares  of  FSCM's  Common  Stock.
Currently,  only 800 shares of FSCM's  Common Stock have been granted  under the
Plan and no options have previously been exercised.

Effective for the September  1997 payment,  FSCM  increased the dividend rate on
Common  Stock to $2.50 per share per annum from the  previous  rate of $2.00 per
share per annum.

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, and March 31, 1997, as
well as the  minimum  regulatory  ratios  and  capital  requirements  for  "well
capitalized" and "adequately capitalized" financial institutions.
<PAGE>


                                 CAPITAL RATIOS
<TABLE>

                                                         Minimum Capital Required To Be Categorized As:          
                                            Actual       Adequately Capitalized       Well Capitalized
                                     -----------------   ----------------------      -------------------
                                      Amount     Ratio      Amount      Ratio        Amount       Ratio 
                                     -------    ------      -------     -----        -------      ------
<S>                                  <C>        <C>         <C>         <C>          <C>          <C>
As of September 30, 1997:
  Total  Capital (to Risk
    Weighted Assets) .............   $45,026    13.44%      $26,797      8.00%       $33,497      10.00%
  Tier I Capital (to Risk
    Weighted Assets)  ............    29,563     8.83        13,399      4.00         20,098       6.00
  Tier I Capital (to Average
    Assets)   ....................    29,563     6.44        18,360      4.00         22,950       5.00
As of March 31, 1997:
  Total  Capital (to Risk
    Weighted Assets) .............   $42,840    13.50%      $25,381      8.00%       $31,726      10.00%
  Tier I Capital (to Risk
    Weighted Assets)  ............    27,606     8.70        12,690      4.00         19,035       6.00
  Tier I Capital (to Average
    Assets) ......................    27,606      6.79       16,258      4.00         20,322       5.00

</TABLE>

Impact of Recently Issued Statements of Financial Accounting Standards

The  Financial  Accounting  Standards  Board  ("FASB")  has issued  Statement of
Financial  Accounting  Standards  ("SFAS") No. 128,  "Earnings  per Share" which
becomes  effective  for  financial  statements  issued for periods  ending after
December 15, 1997.  This  Statement  establishes  standards  for  computing  and
presenting earnings per share ("EPS") and applies to entities with publicly held
stock or potential  Common Stock.  This  Statement  simplifies the standards for
computing  earnings per share  previously found in APB Opinion No. 15, "Earnings
per  Share,"  and makes them  comparable  to  international  EPS  standards.  It
replaces the  presentation  of primary EPS with a presentation  of basic EPS. It
also  requires  dual  presentation  of basic and  diluted EPS on the face of the
income statement of all entities with complex capital  structures and requires a
reconciliation  of the numerator and denominator of the basic EPS computation to
the  numerator  and  denominator  of the  diluted  EPS  computation.  Management
believes that adoption of the Statement  will not have a material  effect on the
consolidated financial statements.

FASB has  issued  SFAS  No.  130,  "Reporting  Comprehensive  Income,"  which is
effective for fiscal years  beginning  after  December 15, 1997.  This Statement
establishes  standards for reporting and display of comprehensive income and its
components in a full set of  general-purpose  financial  statements.  Management
believes that adoption of this Statement will not have a material  effect on the
consolidated financial statements.

FASB has issued SFAS No. 131,  "Disclosure  about  Segments of an Enterprise and
Related  Information,"  which is  effective  for fiscal  years  beginning  after
December 15, 1997. This Statement  establishes standards for the way that public
business  enterprises  report  information  about  operating  segments in annual
financial  statements  and  requires  that  those  enterprises  report  selected
information  about  operating  segments in interim  financial  reports issued to
stockholders.  It also  establishes  standards  for  related  disclosures  about
products  and  services,  geographic  areas,  and  major  customers.  Management
believes that adoption of this Statement will not have a material  effect on the
consolidated financial statements.


<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 Annul Meeting of Stockholders was held August 29, 1997.

b)  The names of the directors who were re-elected at the Annual Meeting were:

    1.  Perry B. Hansen
    2.  Douglas M. Kratz
    3.  John T. Kustes
    4.  Francis P. McCarthy

c)  Details of matters voted upon:

Votes Cast                               For    Against  Withheld   Abstentions
----------                             -------  -------  --------   -----------

    For the election of directors:
    Perry B. Hansen ................   128,385     --       --         378
    Douglas M. Kratz ...............   128,385     --       --         378
    John T. Kustes .................   128,385     --       --         378
    Francis P. McCarthy ............   128,385     --       --         378

For the appointment of McGladrey &
    Pullen, LLP as FSCM's 
    independent accountants for the 
    fiscal year ending March 31,  
    1998 ...........................   128,439   294        --         30


Item 6.  Exhibits and Reports on Form 8-K

        (a)  Exhibits

             10.1  Revolving  Business Note executed by FSCM in favor of 
                   M&I Bank in the original  principal  amount of $10,000,000  
                   dated as of July 31, 1997.

             10.2  Amendment, dated August 27, 1997, to Letter Agreement dated 
                   as of December 15, 1992 by and between FSCM and M&I Bank.

             10.3  Summary of Material Terms of Directors' and Officers'  
                   Liability  Policy  covering the policy period from 
                   October 18, 1997 to October 18, 2000.

        (b)  Reports on Form 8-K

             None

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, 1997                By: /s/ Douglas M. Kratz
                                            ------------------------------------
                                            Douglas M. Kratz
                                            Chairman of the Board, CEO, CFO



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