SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C. 20549
                                     
                                     
                                 FORM 10-Q
                                     
                                     
               QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                    THE SECURITIES EXCHANGE ACT OF 1934



                                                                           
For quarter ended March 31, 1998              Commission file number 0-8426



                              FIRSTBANK OF ILLINOIS CO.
          (exact name of registrant as specified in its charter)



          DELAWARE                                            37-6141253
(State of other jurisdiction                              (I.R.S. Employer
of incorporation of organization)                        Identification No.)



     205 S. Fifth Street                                              
    Springfield, Illinois                                           62701
(address of principal executive offices)                         (Zip code)



Registrant's telephone number, including area code (217) 753-7543.


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months and (2) has been subject to the
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, par value $1.00 per share -- 15,941,350 shares outstanding on
March 31, 1998.

<PAGE>

Part I.  Financial Information

Item 1.  Financial Statements

FIRSTBANK OF ILLINOIS CO. AND SUBSIDIARIES
INTERIM CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(in thousands of dollars except per share data)
<TABLE>
<CAPTION>
                                                             March 31,  December 31,
                                                               1998         1997
<S>                                                        <C>           <C>
ASSETS
Cash and due from banks                                    $   96,021    $ 104,339
Short-term investments                                         21,078        3,545
Investment securities:
  Available-for-sale, at market value                         627,548      628,322
  Held-to-maturity, at amortized cost (market value of
    $25,289 and $27,721 for 1998 and 1997, respectively)       24,404       26,824
       Total investment securities                            651,952      655,146  

Loans                                                       1,426,931    1,429,363
Unearned discount                                              (1,798)      (2,059)
    Loans, net of unearned discount                         1,425,133    1,427,304
Reserve for possible loan losses                              (20,285)     (19,939)
    Loans, net                                              1,404,848    1,407,365

Premises and equipment, net                                    48,664       49,049
Accrued income receivable                                      19,822       20,205
Other assets                                                   41,285       42,169
       Total assets                                        $2,283,670   $2,281,818

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
Deposits:
  Noninterest-bearing                                      $  288,895   $  300,166
  Interest-bearing                                          1,711,644    1,681,880
       Total deposits                                       2,000,539    1,982,046

Short-term borrowings                                          18,604       47,266
Other liabilities                                              26,038       19,933
       Total liabilities                                    2,045,181    2,049,245

SHAREHOLDERS' EQUITY
Preferred stock, no par value:
  Authorized and unissued -- 1,000,000 shares                       -            -
Common stock, par value $1 per share:
  Authorized -- 20,000,000 shares
  Issued including shares in treasury -- 15,941,350 shares
    in 1998 and 15,794,097 shares in 1997                      15,941       15,794
Capital surplus                                                42,976       41,980
Retained earnings                                             178,546      174,919
Accumulated other comprehensive income                          1,026          968
Less treasury stock at cost: 46,278 shares in 1997                  -       (1,088)
       Total shareholders' equity                             238,489      232,573
       Total liabilities and shareholders' equity          $2,283,670   $2,281,818

</TABLE>
<PAGE>
See accompanying notes to interim consolidated condensed financial
statements.

Part I.  Financial Information ... continued

Item 1.  Financial Statements ... continued

FIRSTBANK OF ILLINOIS CO. AND SUBSIDIARIES
INTERIM CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands of dollars except per share data)

                                                     Three Months Ended
                                                         March 31,
                                                       1998      1997

INTEREST INCOME
Loans                                                $31,383   $28,119
Investment securities:
  Taxable                                              9,669     7,443
  Exempt from Federal income tax                         323       405
Short-term investments                                   223       644
     Total interest income                            41,598    36,611

INTEREST EXPENSE
Deposits                                              19,098    15,575
Short-term borrowings                                    429       742
Total interest expense                                19,527    16,317

     Net interest income                              22,071    20,294
Provision for possible loan losses                       762       717

     Net interest income after
     provision for possible loan losses               21,309    19,577

NONINTEREST INCOME
Securities gains (losses), net                            71       (4)
Service charges on deposit accounts                    1,945     1,611
Trust services                                         1,513     1,156
Mortgage lending activities                            1,218       675
Investment services                                      573       548
Agricultural services                                    401       463
Other                                                  1,057       990
     Total noninterest income                          6,778     5,439

NONINTEREST EXPENSE
Salaries and employee benefits                         9,133     7,973
Net occupancy                                          1,373     1,289
Equipment                                              1,233     1,150
Postage, printing and supplies                           739       627
Professional                                             605       541
FDIC and other insurance                                 195       162
Other                                                  2,648     2,148
     Total noninterest expense                        15,296    13,890

Net income before income taxes                        12,161    11,126

Income tax expense                                     4,395     3,941

Net income                                             7,766     7,185

Other comprehensive income (loss), net of tax:
   Unrealized gains (losses) on securities                58   (1,238)

Comprehensive income                                 $ 7,824   $ 5,947

Net income per common share - basic                  $  0.49   $  0.47

Net income per common share - diluted                $  0.48   $  0.46



See accompanying notes to interim consolidated condensed financial
statements.
<PAGE>

Part I.  Financial Information ... continued

Item 1.  Financial Statements ... continued

FIRSTBANK OF ILLINOIS CO. AND SUBSIDIARIES
INTERIM CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (Unaudited)
(in thousands of dollars)

                                                           Three Months Ended
                                                               March 31,
                                                            1998      1997


OPERATING ACTIVITIES
 Net income                                                $  7,766  $  7,185
 Adjustments to reconcile net income to net cash provided
  by operating activities:
   Depreciation and amortization                              3,647     1,693
   Provision for possible loan losses                           762       717
   Writedowns in value and losses incurred on
      other real estate owned                                   (45)        -
   (Increase) decrease in accrued income receivable             383      (646)
   Gain on sale of loans                                       (911)     (321)
   Other, net                                                 6,053     2,838
   Originations of loans for sale                           (87,764)  (23,843)
   Proceeds from sale of loans                               57,401    23,575
      Net cash provided by operating activities             (12,708)   11,198

INVESTING ACTIVITIES
 Purchases of investment securities:
   Available-for-sale                                      (577,149) (261,854)
   Held-to-maturity                                              (1)     (350)
 Proceeds from sales of investment securities
   Available-for-sale                                         5,047     9,991
 Proceeds from maturities of and principal payments on
   investment securities:
   Available-for-sale                                       571,248   166,907
   Held-to-maturity                                           2,405     5,044
 Purchases of premises and equipment                         (1,167)   (2,082)
 Proceeds from sales of premises and equipment                  207        81
 Proceeds from sales of other real estate owned                 720       162
 Net loan principal collected                                32,690    14,390
   Net cash used in investing activities                     34,000   (73,411)

FINANCING ACTIVITIES
 Net decrease in noninterest-bearing deposit accounts       (11,271)  (44,087)
 Net (decrease) increase in savings, 
   NOW and money market deposits                             (2,570)   41,064
 Net increase in certificates of deposit                     32,334    27,051
 Net (decrease) increase in short-term borrowings           (28,662)   14,327
 Principal payments under capital lease obligations               -        (1)
 Cash dividends paid                                         (4,139)   (2,469)
 Proceeds from exercise of common stock options               2,738       687
 Proceeds from dividend reinvestment plan                       146        96
 Purchase of shares for treasury                               (653)   (1,582)
      Net cash provided by financing activities             (12,077)   35,086

Increase (decrease) in cash and cash equivalents              9,215   (27,127)
Cash and cash equivalents at beginning of year              107,884   156,501
Cash and cash equivalents at end of period                 $117,099  $129,374

Supplemental information:
  Income taxes paid                                        $      -  $      -
  Interest paid                                              19,479    16,314
  Noncash transfers of loans to other real estate               339       678


See accompanying notes to interim consolidated condensed financial
statements.
<PAGE>

  PART I.   FINANCIAL INFORMATION ... Continued
  
  Item 1.        Financial Statement ... Continued
  
  FIRSTBANK OF ILLINOIS CO. AND SUBSIDIARIES
  
  NOTES TO INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(unaudited)
  
  March 31, 1998

  1.   The   accompanying   unaudited  interim  consolidated   condensed
       financial  statements have been prepared in accordance  with  the
       instructions to Form 10-Q and, therefore, do not include  all  of
       the   information  and  notes  required  by  generally   accepted
       accounting   principles   for  complete  consolidated   financial
       statements.   In  the  opinion  of  management,  all  adjustments
       (consisting  of  normal recurring accruals) considered  necessary
       for   a  fair  presentation  have  been  included.   For  further
       information,  refer to the Company's Annual Report on  Form  10-K
       for the year ended December 31, 1997.
  
  2.   On  January  2,  1997, the Company purchased  certain  assets  of
       Zemenick & Walker, Inc. ("Z&W"), a registered investment advisory
       firm headquartered in St. Louis, Missouri.  This acquisition  was
       accounted for using the purchase method of accounting, therefore,
       the  operating  results of Z&W are included in  the  consolidated
       condensed  financial  results beginning  January  2,  1997.   The
       purchase price, which approximates the intangible asset recorded,
       will be amortized over fifteen years.

  3.   On  June  10,  1997, the Company acquired BankCentral Corporation
       ("BankCentral")   and   its  wholly-owned   subsidiary,   Central
       National. With assets of approximately $110,000,000 on  the  date
       of acquisition, Central National operates four banking offices in
       Mattoon,  Illinois.  The transaction, which involved an  exchange
       of  cash  and Company common stock, totaling approximately  $13.0
       million,  was  recorded using the purchase method of  accounting.
       The  Company recorded a cost in excess of net assets acquired  of
       approximately  $7,136,000, which will be amortized  over  fifteen
       years.  The operating results of BankCentral are included in  the
       consolidated condensed financial results beginning June 10, 1997.

  4.   The  Company provides long-term variable and fixed rate financing
       on   residential   real  estate  through  two  of   its   banking
       subsidiaries.   Originated  loans are  sold  into  the  secondary
       market  without  recourse, with $57,401,000 and $23,575,000  sold
       during the first three months of 1998 and 1997, respectively.  At
       March  31, 1998 and December 31, 1997, the Company serviced loans
       aggregating  $406,377,000 and $403,678,000,  respectively,  which
       were owned by others.

  5.   On  February 2, 1998, the Company announced plans to  merge  with
       Mercantile  Bancorporation  Inc.,  a  $30  billion  bank  holding
       company headquartered in St. Louis, Missouri.  Under the terms of
       the  merger  agreement, Company shareholders will  receive  .8308
       shares  of Mercantile Bancorporation Inc. common stock  for  each
       share of Firstbank common stock.  The merger, structured as a tax-
       free  exchange,  is  contingent  upon  the  approval  of  various
       regulatory agencies and Firstbank shareholders.  This transaction
       is expected to close during the third quarter of 1998.

  6.   The  Company  adopted  the provisions of Statement  of  Financial
       Accounting  Standards  No. 130, "Reporting Comprehensive  Income"
       ("SFAS  130")  on  January 1, 1998.  SFAS 130 requires  that  all
       items  that  are  required  to  be  recognized  under  accounting
       standards as components of comprehensive income be reported in  a
       financial statement that is displayed with the same prominence as
       other  financial statements.  The accompanying unaudited  interim
       consolidated  condensed balance sheets and statements  of  income
       present   accumulated  other  comprehensive  income   and   other
       comprehensive  income  (loss), respectively.   Accumulated  other
       comprehensive  income represents unrealized gains  on  investment
       securities, net of tax.





<PAGE>






  PART I.   FINANCIAL INFORMATION ... Continued
  
  Item 1.        Financial Statement ... Continued




  7.   Following  is  a  reconciliation  of  the  numerators   and   the
       denominators  of  the basic and the diluted  earnings  per  share
       computations for net income.  The table information  provided  is
       for the first three months of 1998 and 1997:



                                               Three Months Ended
                                                 March 31, 1998
                                                                 Per-Share
                                          Income      Shares      Amount


        Net Income                      $7,766,000
  
        Basic Earnings Per Share
           Income available to
              common stockholders        7,766,000  15,844,163  $     0.49
        
        Effect of Dilutive Securities
           Common stock options                  -     315,270
        
        Dilutive Earnings per share
           Income available to common
              stockholders plus assumed
              conversions               $7,766,000  16,159,433  $     0.48
        
        
        
                                               Three Months Ended
                                                 March 31, 1997
                                                                 Per-Share
                                          Income      Shares      Amount
        
        
        Net Income                      $7,185,000
        
        Basic Earnings Per Share
           Income available to
              common stockholders       $7,185,000  15,443,916  $     0.47
        
        Effect of Dilutive Securities
           Common stock options                  -     264,296
        
        Dilutive Earnings per share
           Income available to common
              stockholders plus assumed
              conversions               $7,185,000  15,708,212  $     0.46
<PAGE>

        
  Part I.        Financial Information ... Continued
  
  Item 2.        Management's Discussion and Analysis of Financial
  Condition and Results              of Operations  (dollars in
  thousands, except per share data)
  
  General


        Firstbank  provides banking, trust and other financial  services
  through  its  operating subsidiaries in Illinois  and  Missouri.   The
  following discussion and related financial information is presented to
  aid in the understanding of Firstbank's current financial position and
  recent   results  of  operations.   This  analysis  provides  a   more
  comprehensive review than the interim consolidated condensed financial
  statements  and  tables alone, but should be read in conjunction  with
  those  statements  and tables, which are presented elsewhere  in  this
  report.

        Firstbank's recent acquisition activity is important to consider
  when  reviewing  the financial information included in  the  following
  discussion  and  related financial information.  On January  2,  1997,
  Firstbank purchased certain assets of Zemenick & Walker, Inc. ("Z&W"),
  a  registered  investment advisory firm headquartered  in  St.  Louis,
  Missouri.    On  June  10,  1997,  the  Company  acquired  BankCentral
  Corporation and its wholly-owned subsidiary, Central National Bank  of
  Mattoon ("Central National").  Each of the 1997 acquisitions has  been
  accounted  for  as a purchase, accordingly operating  results  of  the
  acquired  companies are included in Firstbank's consolidated condensed
  financial statements beginning on the acquisition dates noted above.


  Consolidated Balance Sheet Analysis

        Total  assets at March 31, 1998 were $2,283,670, up $1,852  from
  $2,281,818 at December 31, 1997.  Net loans and investment securities,
  the  two  largest  components of earning assets,  remained  relatively
  unchanged from $1,427,304 and $655,146, respectively, at December  31,
  1997  to  $1,425,133 and $651,952, respectively, at  March  31,  1998.
  Deposits,  the primary source of funding for earning assets, increased
  $18,493  from $1,982,046 at December 31, 1997 to $2,000,539  at  March
  31,  1998, as interest-bearing deposits increased $29,764 offset by  a
  decline in noninterest-bearing deposits of $11,271.
  
        Average earning assets, as a percentage of average total assets,
  increased slightly in the first quarter of 1998 to 92.44% from  92.34%
  at  December  31, 1997.  The current loan-to-deposit ratio  of  71.24%
  decreased  from  the year-end level of 72.01% primarily  as  interest-
  bearing   deposits  increased  $29,764  and  loans,  net  of  unearned
  discount, decreased $2,171.
  
       Loan Portfolio

        The Company's banking group operates and substantially all loans
  are  made in the states of Illinois and Missouri.  The following table
  presents  the composition of the loan portfolio as of March  31,  1998
  and December 31, 1997:
  
                                 March 31,   % of     December 31,  % of
                                    1998     total        1997      total
  
  
  Commercial, financial
    and agricultural           $  315,164    22.09%   $  325,785    22.79%
  
  Real estate - construction       96,242     6.74       106,831     7.47
  Real estate - mortgage          782,275    54.82       761,367    53.27
  
  Installment                     233,250    16.35       235,380    16.47
          Total loans          $1,426,931   100.00%   $1,429,363   100.00%

        The  Company  manages  exposure  to  credit  risk  through  loan
  portfolio  diversification  by  customer,  industry,  and  loan  type.
  Credit   risk  management  also  includes  pricing  loans   to   cover
  anticipated  future loan losses, funding and servicing  cost,  and  to
  allow for a profit margin.

         The  Company's  loan  portfolio  at  March  31,  1998  had   no
  concentration of loans to any multiple number of borrowers engaged  in
  similar activities which would cause them to be similarly impacted  by
  economic  or  other  conditions as of this  date.   Additionally,  the
  Company  has refrained from financing highly leveraged corporate  buy-
  outs,  which  management  believes  would  subject  Firstbank  to   an
  unacceptable level of risk.
<PAGE>
        
        The  Company is not aware of any loans classified for regulatory
  purposes  at  March  31, 1998, that are expected to  have  a  material
  impact  on  the  Company's  future operating  results,  liquidity,  or
  capital  resources.  The Company is not aware of any material  credits
  about  which there is serious doubt as to the ability of borrowers  to
  comply   with  the  loan  repayment  terms.   There  are  no  material
  commitments  to  lend additional funds to customers whose  loans  were
  classified as nonaccrual at March 31, 1998.
  
       Reserve For Possible Loan Losses

        The reserve for possible loan losses at March 31, 1998 was 1.42%
  of  outstanding loans as compared to 1.40% at December  31,  1997.   A
  reserve  for possible loan losses that exceeds the level of identified
  problem loans reflects management's conservative approach by providing
  for other risks inherent in the portfolio.  Reserves cover 182% of the
  Company's nonperforming loans at March 31, 1998.
  
       The following table summarizes average loans outstanding; changes
  in the reserve for possible loan losses arising from loans charged-off
  and  recoveries on loans previously charged-off, by loan category; and
  additions to the allowance that have been charged to expense:


                                          Three Months EndedTwelve Months Ended
                                             March 31,        December 31,
                                                1998              1997
        
        Average loans outstanding           $1,424,147        $1,348,960
        
        Reserve at beginning of year        $   19,939        $   19,103
        Reserves acquired                            -               982
        Provision for possible loan losses         762             2,958
        
        Charge-offs:
        Commercial, financial and
          agricultural loans                       335             2,041
        Real estate - mortgage loans                32               599
        Real estate - construction loans             -                 5
        Installment loans                          291             1,501
                                                   658             4,146
        Recoveries:
        Commercial, financial and
          agricultural loans                       101               426
        Real estate - mortgage loans                39               203
        Real estate - construction loans             1                 2
        Installment loans                          101               411
                                                   242             1,042
        Net charge-offs                            416             3,104
        
        Reserve at end of period            $   20,285        $   19,939
        
        Net charge-offs to average loans          0.03%             0.23%
        
        
        In  determining an adequate balance in the reserve for  possible
  loan losses, management places its emphasis as follows:  evaluation of
  the  loan  portfolio  with  regard to  potential  future  exposure  on
  impaired  loans to specific customers and industries; reevaluation  of
  each nonperforming loan or loan classified by supervisory authorities;
  and an overall review of the remaining portfolio in light of past loan
  loss  experience.   Any problems or loss exposure estimated  in  these
  categories was provided for in the total current period reserve.
  
         Loan  portfolio  quality  remains  management's  top  priority.
  Management  believes  the  reserve for possible  loan  losses  remains
  adequate to absorb losses inherent in the consolidated loan portfolio.
  Ongoing reviews of the portfolio, coverage ratios, and trends  in  the
  reserve and net charge-offs support this belief.
  
       Nonaccrual, Restructured, Impaired and Past Due Loans

        Nonperforming loans as a percentage of total loans was 0.79%  at
  March  31,  1998, down slightly from 0.80% at December 31, 1997.   The
  Company's level of nonperforming loans decreased in the first  quarter
  of 1998 to $11,271 from $11,406 at December 31, 1997.  Impaired loans,
  which  include  nonaccrual  loans, were  $9,549  at  March  31,  1998,
  declined  from  $10,044 at December 31, 1997.  As the following  table
  indicates, the increase in nonperforming loans is primarily  in  loans
  past due ninety days or more.
<PAGE>

    Nonperforming loans at March 31, 1998 and December 31, 1997,
    include the following:

                                             March 31,        December 31,
                                                1998              1997
        Commercial, financial and
          agricultural                       $ 4,613           $ 4,756
        Real estate - construction               749               749
        Real estate - mortgage                 5,102             5,020
        Installment                              739               881
            Total                            $11,203           $11,406
        
        Nonaccrual loans (1)                 $ 9,549           $10,044
        Loans past due 90 days or more (2)     1,619             1,306
        Restructured loans (3)(4)                 35                56
            Total nonperforming loans        $11,203           $11,406
        
        Nonperforming loans to
          total loans                            .79%              .80%

     (1)  It  is  the  policy of the Company to periodically review  its
        loans and to discontinue the accrual of interest on any loan for
        which  full collectibility of principal or interest is doubtful.
        Subsequent interest payments received on such loans are  applied
        to  principal if there is any doubt as to the collectibility  of
        such  principal;  otherwise,  these  receipts  are  recorded  as
        interest income.
        
     (2) Excludes loans accounted for on a nonaccrual basis.
        
     (3)  Restructured loans are classified as such only until such time
        as  the terms are substantially equivalent to terms on which new
        loans  with  comparable risks are being made.  For  purposes  of
        this summary, loans renewed on market terms existing at the date
        of renewal are not considered restructured loans.
        
     (4)  Excludes  loans accounted for on a nonaccrual basis and  loans
        contractually  past  due  90 days or  more  as  to  interest  or
        principal payments.
  
        In  the normal course of business, the Company's practice is  to
  consider  and  act upon borrowers' requests for renewal  of  loans  at
  their maturity.  Evaluation of such requests includes a review of  the
  borrower's credit history, the collateral securing the loan,  and  the
  purpose for such request.  In general, loans which the Company  renews
  at  maturity require payment of accrued interest, a reduction  in  the
  loan  balance,  and/or  the pledging of additional  collateral  and  a
  potential  adjustment of the interest rate to reflect changes  in  the
  economic conditions.
  
     Potential Problem Loans

        As  of  March 31, 1998, eleven loan relationships with  a  total
  principal  balance of approximately $788 were identified by management
  as having possible credit problems that raise doubts as to the ability
  of  the  borrowers to comply with the current repayment terms.   While
  these  commercial  or commercial real estate borrowers  are  currently
  meeting  all  the  terms  of  the applicable  loan  agreements,  their
  financial condition has caused management to believe that their  loans
  may  result in disclosure at some future time as nonaccrual, past  due
  or restructured.

     Foreign Outstandings

        The Company had no loans to any foreign countries on any of  the
  dates specified in the tables.

  Liquidity and Interest Rate Sensitivity
  
        Interest  rate  sensitivity  is closely  monitored  through  the
  Company's asset-liability management procedures.  At the end  of  this
  discussion is a table reflecting Firstbank's interest rate  gap  (rate
  sensitive assets minus rate sensitive liabilities) analysis  at  March
  31,   1998,  individually  and  cumulatively,  through  various   time
  horizons.

        At December 31, 1997 and March 31, 1998, the static gap analyses
  indicated  substantial  liability sensitivity  over  a  one-year  time
  horizon.  Generally, such a position indicates that an overall rise in
  interest  rates would result in an unfavorable impact on the Company's
  net  interest  margin, as liabilities would reprice more quickly  than
  assets.
<PAGE>

  Conversely, the net interest margin would be expected to improve  with
  an  overall  decline  in interest rates.  As savings,  NOW  and  money
  market  accounts  are  subject  to  withdrawal  on  demand,  they  are
  presented  in the analysis as immediately repriceable.  Based  on  the
  Company's  experience, pricing on such deposits  is  not  expected  to
  change  in  direct  correlation with changes in the general  level  of
  short-term  interest rates.  Accordingly, management believes  that  a
  gradual increase in the general level of interest rates will not  have
  a material effect on the Company's net interest income.

       This traditional method of measuring interest rate risk does not,
  in  management's opinion, adequately assess many of the variables that
  affect  the  Company's  net interest margin.  As  a  result  Firstbank
  places  more emphasis on the use of simulation analysis.   Using  this
  technique,   the  impact  of  various  interest  rate   scenarios   on
  Firstbank's net interest margin are analyzed and management strategies
  are  adjusted to maintain the interest margin within certain tolerance
  ranges.

        The  Company's simulation analysis evaluates the effect  on  net
  interest  income  of  alternative  interest  rate  scenarios   against
  earnings in a stable interest rate environment.  At December 31, 1997,
  the analysis projected net interest income to decrease by 1.9% and the
  net interest margin to contract 8 basis points if the general level of
  interest  rates  increased by 2 percentage points  over  the  next  12
  months  (.50%  each quarter).  Conversely, the analysis projected  net
  interest income to increase 4.6% and the net interest margin to expand
  by  20 basis points if the general level of interest rates fell  by  2
  percentage  points over the next 12 months (.50% each  quarter).   The
  March  31,  1998 simulation analysis, using the assumptions  described
  above,  projected net interest income to decrease by 1.3% and the  net
  interest  margin  to contract by 5 basis points if  rates  increase  2
  percentage  points in the next 12 months.  If rates fall 2  percentage
  points, the net interest income was projected to increase 3.7% and the
  net interest margin projected to expand 15 basis points.

       At the present time, Company management is not aware of any known
  trends,  events  or  uncertainties that will have  or  are  reasonably
  likely  to have a material effect on the Company's liquidity,  capital
  resources  or  results  of  operations.  Company  management  is  also
  unaware  of  any current recommendations by the regulatory authorities
  which, if they were to be implemented, would have such an effect.

        The  Company  has approximately 96% of its investment  portfolio
  designated  as  available-for-sale.  At  March  31,  1998,  unrealized
  gains, net of tax, on that portfolio was $1,026 and is reflected as  a
  reduction  in  the  equity section of the balance  sheet.   Unrealized
  gains,  net of tax, of $968 was reflected as an increase in the equity
  section  of  the balance sheet as of December 31, 1997.   The  current
  unrealized  gain  as a percent of the total available-for-sale  market
  value represents .16%, an indication that the aggregate yield is  very
  close to current market rates.

  Capital Resources

        The Company believes that a strong capital position is vital  to
  continued   profitability  and  to  promote  depositor  and   investor
  confidence.  The Company's consolidated capital levels are a result of
  its  capital  policy which establishes guidelines for each  subsidiary
  based  on industry standards, regulatory requirements, perceived  risk
  of the various businesses, and future growth opportunities.
  
       The Company's March 31, 1998 equity-to-asset and tangible equity-
  to-asset  ratios remained stable at 10.44% and 9.48%  as  compared  to
  10.19%  and  9.21%, respectively, at the end of 1997.  The  March  31,
  1998  equity-to-asset ratio excluding investment  security  unrealized
  holding gains is 10.41%.

        At  March 31, 1998, the Company and its banking subsidiaries all
  exceeded  their  minimum capital requirements for  "well  capitalized"
  institutions.  Tier 1, Total Capital and Tier 1 Leverage  ratios  were
  14.93%, 16.18% and 9.47%, respectively at March 31, 1998.  The minimum
  capital ratios for "well capitalized" institutions are 6%, 10% and  5%
  for Tier 1, Total Capital and Tier 1 Leverage ratios, respectively.

        Shareholders'  equity represents book value  and  tangible  book
  value  per common share of $14.96 and $13.44, respectively,  at  March
  31,  1998, as compared to $14.77 and $13.20, respectively, at December
  31, 1997.

  Consolidated Income Statement Analysis

        Net  income for the three months ended March 31, 1998 was $7,766
  as  compared  to net income for the corresponding period  of  1997  of
  $7,185.  The improvement in earnings is attributable to increased  net
  interest  income  as average earning assets for the first  quarter  of
  1998  increased  13.4%  over  the comparable  1997  quarter.   Diluted
  earnings per share for the three month period was $.48 as compared  to
  1997 earnings of $.46, an increase of 4.3%.
<PAGE>  

       Net Interest Income

        Net  interest  income for the first three  months  of  1998  was
  $22,071, or $1,777 above the first three months of 1997 as a result of
  increased  loan  and investment volumes.  Interest  rates  have  risen
  slightly  on  the Company's funding, most notably in the time  deposit
  categories,  adding  pressure to the Company's interest  margin.   Net
  interest income (on a tax-equivalent basis) as a percentage of average
  earning assets for the first quarter of 1998 was 4.30% as compared  to
  4.48%  for  the same period in 1997 as the average yield on  interest-
  bearing  liabilities  increased from  4.34%  to  4.56%  for  the  same
  periods.  Average balance sheets and yields are included for  each  of
  those quarters at the end of this discussion.

       Provision For Possible Loan Losses

        The  provision  for  possible loan losses reflects  management's
  judgment of the cost associated with credit risks inherent in the loan
  portfolio.   The  provision for possible loan  losses  represents  the
  amount necessary to adjust the reserve for possible loan losses to the
  level  that management considers appropriate.  Factors which influence
  management's  determination of the provision for loan losses  include,
  among   other  things,  current  and  projected  economic  conditions,
  historical  loss trends, a review of individual loans and  changes  in
  the character and size of the portfolio.
  
        The  provision for possible loan losses of $762  for  the  first
  three months of 1998 represents an increase from $717 recorded in  the
  comparable  1997  period.   The increase  in  the  provision  in  1998
  reflects the provision for Central National, acquired in June 1997.


       Noninterest Income

        Noninterest  income for the first three months of  1998  was  up
  24.6% as compared to the corresponding period in 1997.  Revenues  from
  service  charges  on  deposit  accounts, trust  services  income,  and
  mortgage  lending income increased $334, $357, and $543, respectively,
  in  comparison  to  the same period a year ago.  Income  from  deposit
  service  charges, which in the second quarter of 1997 began to include
  surcharges assessed when non-customers use the Company's ATM  network,
  increased  20.7% over the first quarter of 1997.  Revenues from  trust
  services,  which include custodial fees associated with  the  Illinois
  Sate Treasurer Investment Pool accounts added during the third quarter
  of  1997,  increased 30.9% over the first quarter of  1997.   Mortgage
  lending   activities,  which  intensified  with  declining   long-term
  interest  rates, originated $87,764 in fixed rate mortgage  loans  for
  sale  into  the  secondary market during the  first  quarter  of  1998
  compared to $23,843 in the same 1997 period.

  
       Noninterest Expense

       Noninterest expense increased 14.7% for the first three months of
  1998  compared  to  the  same period of 1997.  Salaries  and  benefits
  expense  increased $1,160 or 14.5% for the first quarter  of  1998  as
  compared  to  the same quarter of 1997.  The increase is  due  to  the
  effect  of the Central National acquisition, higher costs for  pension
  and medical insurance, and normal merit increases.  Compensation costs
  associated  with  higher  volumes of mortgage loan  originations  also
  contributed to the rise in salaries and benefits expense.

        Noninterest  expense excluding salaries and  benefits  increased
  6.3% due in part to the effect of the Central National acquisition and
  higher   mortgage  loan  volumes  resulting  in  additional   mortgage
  appraisal,  processing  fees  expense  and  mortgage  servicing  asset
  amortization.


       Income Taxes

        Income  taxes  of  $4,395 for the first  three  months  of  1998
  exceeded  the  corresponding  amount in 1997 by  11.5%.   The  primary
  differences  between  the two years were higher pre-tax  earnings  and
  lower  levels of tax-exempt interest income in the current year.   The
  Company's  effective tax rate for the first quarter of 1998 was  36.1%
  as compared to 35.4% in the same period of 1997.
<PAGE>  

  EFFECT OF NEW ACCOUNTING STANDARDS
  
        In  February  1998,  the  Financial Accounting  Standards  Board
  ("FASB") issued Statement of Financial Accounting Standards No. 132  -
  "Employers'   Disclosures  about  Pensions  and  Other  Postretirement
  Benefits" ("SFAS 132").  SFAS 132 revises employers' disclosures about
  pension  and other postretirement benefit plans.  It does  not  change
  the  measurement  or recognition of those plans.  It standardizes  the
  disclosure requirements for pensions and other postretirement benefits
  to  the extent practicable, requires additional information on changes
  in  the  benefit obligations and fair values of plan assets that  will
  facilitate financial analysis, and eliminates certain disclosures that
  are  no  longer  as useful as they were when FASB Statements  No.  87,
  Employers' Accounting for Pensions, No. 88, Employers' Accounting  for
  Settlements and Curtailments of Defined Benefit Pension Plans and  for
  Termination   Benefits,  and  No.  106,  Employers'   Accounting   for
  Postretirement  Benefits  Other  Than  Pensions,  were  issued.   This
  Statement  is effective for fiscal years beginning after December  15,
  1997.  The Statement is not expected to have a material impact on  the
  financial  condition  or results of operations  of  the  Company  when
  adopted in 1998.
  


  EFFECTS OF INFLATION
  
        Persistent high rates of inflation can have a significant effect
  on  the reported financial condition and results of operations of  all
  industries.   However, the asset and liability  structure  of  a  bank
  holding  company is substantially different from that of an industrial
  company,  in  that  virtually all assets and  liabilities  of  a  bank
  holding  company  are  monetary in nature.   Accordingly,  changes  in
  interest  rates  also  have a significant impact  on  a  bank  holding
  company's performance.  Interest rates do not necessarily move in  the
  same direction, or in the same magnitude, as the prices of other goods
  and services.
  
        Inflation does have an impact on the growth of total  assets  in
  the  banking  industry, often resulting in a need to  increase  equity
  capital at higher than normal rates to maintain an appropriate  equity
  to assets ratio.
  
       Although it is obvious that inflation affects the growth of total
  assets,  it  is difficult to measure the impact precisely.   Only  new
  assets  acquired  in  each year are directly  affected,  so  a  simple
  adjustment  of  asset  totals by use of  an  inflation  index  is  not
  meaningful.   The  results of operations also have  been  affected  by
  inflation, but again there is no simple way to measure the  effect  on
  the various categories of income and expense.
  
        Interest  rates  in  particular are  significantly  affected  by
  inflation,  but  neither the timing nor the magnitude of  the  changes
  coincides with changes in standard measurements of inflation  such  as
  the consumer price index.  Additionally, changes in interest rates  on
  some types of consumer deposits may be delayed.  These factors in turn
  affect  the composition of sources of funds by reducing the growth  of
  deposits that are less interest sensitive and increasing the need  for
  funds that are more interest sensitive.
<PAGE>

Part I.  Financial Information
Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations...continued

FIRSTBANK OF ILLINOIS CO. AND SUBSIDIARIES
INTERIM CONSOLIDATED CONDENSED AVERAGE BALANCE SHEETS (Unaudited)
(in thousands of dollars)
<TABLE>
<CAPTION>
                                                     Three Months Ended    Three Months Ended
                                                       March 31, 1998        March 31, 1997
                                                        Interest Average          Interest Average
                                                Average  Income/  Yield/  Average  Income/  Yield/
                                                Balance  Expense   Rate   Balance  Expense   Rate
<S>                                          <C>        <C>       <C>   <C>        <C>       <C>
ASSETS
Earning assets:
  Loans                                      $1,424,147 $31,453   8.96% $1,281,372 $28,173   8.92%
  Investment securities:
    Taxable                                     639,854   9,669   6.13     495,543   7,443   6.09
    Nontaxable                                   20,970     448   8.67      26,531     554   8.47
  Short-term investments                         16,750     223   5.40      50,175     644   5.21
      Total earning assets                    2,101,721  41,793   8.06   1,853,621  36,814   8.05

Nonearning assets:
  Cash and due from banks                        81,814                     72,200
  Premises and equipment                         49,012                     43,847
  Reserve for possible loan losses              (20,023)                   (19,118)
  Other assets                                   61,125                     53,993
      Total nonearning assets                   171,928                    150,922

      Total assets                           $2,273,649                 $2,004,543

LIABILITIES
Interest-bearing liabilities:
Interest-bearing deposits:
  Savings, NOW and money market accounts     $  703,972 $ 5,046   2.91% $  657,049 $ 4,544   2.80%
  Time deposits                                 998,327  14,052   5.71     807,086  11,031   5.54
Federal funds purchased and securities
   sold under repurchase agreements              34,222     424   5.02      59,658     737   5.01
Other short-term and long-term borrowings           325       5   6.24         472       5   4.30
     Total interest-bearing liabilities       1,736,846  19,527   4.56   1,524,265  16,317   4.34

Noninterest-bearing deposits                    281,234                    251,573
Other liabilities                                19,474                     20,063

Total liabilities                             2,037,554                  1,795,901

SHAREHOLDERS' EQUITY                            236,095                    208,642

Total liabilities and
  shareholders' equity                       $2,273,649                 $2,004,543

Net interest income/net yield
   on earning assets                                    $22,266   4.30%            $20,497   4.48%

</TABLE>
<PAGE>

Part I.  Financial Information

Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations...continued
(in thousands of dollars)

<TABLE>

                                  Remaining Maturity if Fixed Rate;
                        Earliest Possible Repricing Interval if Floating Rate

<CAPTION>

                                             3        Over 3     Over 1
                                           months    months -    year -    Over
                                            or         12          5         5
                                           less      months      years     years       Total
<S>                                   <C>         <C>         <C>        <C>          <C>
INTEREST-EARNING ASSETS
Loans                                 $  454,754  $  300,973  $  611,545 $    57,861  $ 1,425,133
Investment securities                    205,020      91,231     269,248      86,453      651,952
Other interest-earning assets             21,078           -           -           -       21,078
Total interest-earning assets         $  680,852  $  392,204  $  880,793 $   144,314  $ 2,098,163

INTEREST-BEARING LIABILITIES

Savings, NOW, Money Markets           $  706,727  $        -  $        - $         -  $   706,727
C.D.'s over $100,000                      92,552     124,448      73,025       1,492      291,517
All other time deposits                  165,059     339,854     208,363         124      713,400
Nondeposit interest-bearing
   liabilities                             8,061       9,847         696           -       18,604
Total interest-bearing liabilities    $  972,399  $  474,149  $  282,084  $    1,616  $ 1,730,248


GAP by Period                         $ (291,547) $  (81,945) $  598,709  $   142,698 $   367,915

Cumulative GAP                        $ (291,547) $ (373,492) $  225,217  $   367,915 $   367,915

</TABLE>
Item 3.  Quantitative and Qualitative Disclosures Regarding Market Risk

There have been no material changes from the information provided in the
December 31, 1997 Form 10-K.

<PAGE>






                                     
                        PART II.  OTHER INFORMATION



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

          A  Form  8-K  was  filed  February  2,  1998,  announcing  the
          Company's plan to merge with Mercantile Bancorporation Inc., a
          $30-billion bank holding company headquartered in  St.  Louis,
          Missouri.   Under  the terms of the merger agreement,  Company
          shareholders   will   receive  .8308  shares   of   Mercantile
          Bancorporation Inc. common stock for each share  of  Firstbank
          common  stock.  The merger, which is structured as  a  tax-fee
          exchange,   is  contingent  upon  the  approval   of   various
          regulatory   agencies   and  Firstbank   shareholders.    This
          transaction is expected to close in the third quarter of 1998.

          A.   Exhibit 11

<PAGE>


                                     
                                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 duly authorized.


     Firstbank of Illinois Co.

By:   /s/  Chris Zettek
     Executive Vice President and
     Chief Financial Officer

     Date:     May 13, 1998

<PAGE>

Exhibit 11

FIRSTBANK OF ILLINOIS CO.

See the computation of earnings per common share at Note 7 of the
accompanying notes to the interim consolidated condensed financial
statements.