<PAGE>
                               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 June 30, 1998

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
    For the transition period from  _____________ to ____________.

                         Commission File No. 1-13652
                      First West Virginia Bancorp, Inc.
            -----------------------------------------------------
            (Exact name of registrant as specified in its charter)

    West Virginia                                             55-6051901 
------------------------------------------------------------------------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                          Identification No.)
                             1701 Warwood Avenue
                        Wheeling, West Virginia  26003
------------------------------------------------------------------------------
                   (Address of principal executive offices)
Registrant's telephone number, including area code: (304) 277-1100
                                                    ----------------
                                     N/A
------------------------------------------------------------------------------
             (Former name, former address and former fiscal year, if changed
since last report)  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 ( or for such
shorter period that the registrant was required to file such report(s), and
(2) has been subject to such filing requirements for the past 90 days. [X] Yes
[ ] No

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.  [ ] Yes [ ] No [X] N/A

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practible date.  The number of shares
outstanding of the issuer's common stock as of July 28, 1998:  Common Stock,
$5.00 Par Value, shares outstanding    1,209,085 shares
-----------------------------------------------------------------------------
<PAGE>
2
 
                      FIRST WEST VIRGINIA BANCORP, INC.
                                    PART I
                            FINANCIAL INFORMATION


<PAGE>
3
<TABLE>
<CAPTION>
                             First West Virginia Bancorp Inc. and Subsidiaries
                                       CONSOLIDATED BALANCE SHEETS

                                                   June 30,        December 31,        June 30,
                                                    1998               1997             1997
                                              --------------    --------------    --------------
<S>                                           <C>               <C>               <C>
ASSETS
Cash and due from banks                       $    4,611,232   $     4,718,516   $     4,564,501
Due from banks - interest bearing                     65,593            96,967            80,999
                                              --------------    --------------    --------------
     Total cash and cash equivalents               4,676,825         4,815,483         4,645,500
Federal funds sold                                 6,773,000         6,932,000         1,986,000
Investment securities                                                                           
   Available for sale (at market value)           38,481,030        40,665,808        48,564,245
   Held to maturity  -  Market value of                                                         
   $7,194,266 at June 30, 1998 ;                                                                
   $4,837,574 at December 31, 1997;                                                             
   and $ 5,549,659 at June 30, 1997                7,132,998         4,778,146         5,522,065
Loans, net of unearned income                    100,752,760        95,373,653        86,142,661
Less allowance for possible loan losses           (1,068,680)       (1,217,763)       (1,189,645)
                                               --------------    --------------     -------------
                Net loans                         99,684,080        94,155,890        84,953,016
Premises and equipment, net                        3,021,260         3,085,087         3,153,863
Accrued income receivable                          1,092,385         1,075,701         1,112,938
Other assets                                         608,856           630,420           677,335
Intangible assets                                      2,025             4,048             6,072
                                              --------------    --------------    --------------
               Total assets                   $  161,472,459   $   156,142,583   $   150,621,034
                                              ==============    ==============    ==============
           LIABILITIES                                                                          
Noninterest bearing deposits:                                                                   
     Demand                                  $   14,163,024   $    14,142,125   $    12,588,960
Interest bearing deposits:                                                                      
     Demand                                      22,640,625        22,908,421        21,985,330
     Savings                                     44,055,613        42,037,038        44,009,051
     Time                                        59,791,663        57,957,229        54,820,977
                                             --------------    --------------    --------------
               Total deposits                   140,650,925       137,044,813       133,404,318
                                             --------------    --------------    --------------
Repurchase agreements                             5,143,871         4,074,996         3,153,100
Accrued interest on deposits                        448,924           432,870           383,327
Other liabilities                                   452,601           460,909           375,364
                                             --------------    --------------    --------------
               Total liabilities                146,696,321       142,013,588       137,316,109
                                             --------------    --------------    --------------
       STOCKHOLDERS' EQUITY                                                                    
Common Stock - 2,000,000 shares authorized at                                                  
  $5 par value 1,209,085 shares issued at                                                      
  June 30, 1998 and  December 31, 1997 and                                                     
  806,107 shares issued at June 30, 1997          6,045,425         6,045,425         4,030,535
Surplus                                           3,764,000         3,764,000         3,764,000
Retained Earnings                                 4,854,283         4,196,076         5,563,952
Accumulated other comprehensive income              112,430           123,494           (53,562)
                                             --------------    --------------    --------------
   Total stockholders' equity                    14,776,138        14,128,995        13,304,925
                                             --------------    --------------    --------------
Total liabilities and stockholders' equity   $  161,472,459   $   156,142,583   $   150,621,034
                                             ==============    ==============    ==============
</TABLE>
                               
The accompanying notes are an integral part of the financial statements
                                       
<PAGE>
4
<TABLE>
<CAPTION>
                          First West Virginia Bancorp Inc. and Subsidiaries
                                   CONSOLIDATED STATEMENTS OF INCOME

                                       Three Months Ended                Six Months Ended        
                                            June 30,                         June 30,       
                                       1998           1997             1998            1997    
                                   ----------     ----------       ----------       ----------
                                           (Unaudited)                      (Unaudited)       
                                                                               
<S>                                <C>            <C>              <C>              <C>
INTEREST INCOME                                                                                
Interest and fees on loans and lease financing:                                                
   Taxable                         $2,187,246      $1,890,729       $4,314,852       $3,662,697
   Tax-exempt                          48,899          29,054           99,318           53,373
Investment securities:                                                                         
   Taxable                            594,383         760,015        1,239,287        1,461,414
   Tax-exempt                          86,043          66,252          157,863          136,967
Dividends                              11,875           5,371           18,025           10,545
Interest on deposits in banks          45,616           6,014           57,003           24,229
Interest on federal funds sold         88,574          87,730          193,580          194,279
                                    ---------       ----------       ---------       ----------
       Total interest income        3,062,636       2,845,165        6,079,928        5,543,504
INTEREST EXPENSE                                                                               
Deposits                            1,269,441       1,109,993        2,494,416        2,145,724
Other borrowings                       56,351          51,359          108,315          103,597
                                    ---------       ----------       ---------       ----------
       Total interest expense       1,325,792       1,161,352        2,602,731        2,249,321
                                    ---------       ----------       ---------       ----------
       Net interest income          1,736,844       1,683,813        3,477,197        3,294,183
PROVISION FOR POSSIBLE LOAN LOSSES     56,500          36,000          103,000           61,500
                                    ---------       ----------       ---------       ----------
Net interest income after provision                                                            
       for possible loan losses     1,680,344       1,647,813        3,374,197        3,232,683
NONINTEREST INCOME                                                                             
Service charges                       117,480         104,717          225,165          196,041
Securities gains (losses)                  --             --            (1,608)             -- 
Other operating income                 65,813          48,977          149,632          131,759
                                    ---------       ----------       ---------       ----------
       Total noninterest income       183,293         153,694          373,189          327,800
NONINTEREST EXPENSES                                                                           
Salary and employee benefits          588,544         567,580        1,194,426        1,142,502
Net occupancy and equipment expenses  191,054         190,155          391,832          374,347
Other operating expenses              346,323         333,781          649,257          619,554
                                    ---------       ----------       ---------       ----------
       Total noninterest expense    1,125,921       1,091,516        2,235,515        2,136,403
                                    ---------       ----------       ---------       ----------
       Income before income taxes     737,716         709,991        1,511,871        1,424,080
                                    ---------       ----------       ---------       ----------
INCOME TAXES                          236,524         235,506          490,939          472,988
                                    ---------       ----------       ---------       ----------
       Net income                  $  501,192      $  474,485       $1,020,932       $  951,092
                                    =========       ==========       =========       ==========
WEIGHTED AVERAGE SHARES OUTSTANDING 1,209,085       1,209,085        1,209,085        1,209,085
                                    =========       ==========       =========       ==========
EARNINGS PER COMMON SHARE          $     0.41      $     0.39       $     0.84       $     0.79
                                    =========       ==========       =========       ==========
</TABLE>
The accompanying notes are an integral part of the financial statements

<PAGE>
5
<TABLE>
<CAPTION>
                                       First West Virginia Bancorp Inc. and Subsidiaries
                                   CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                                       Common Stock                                       Accumulated    Other
                                 -------------------------                Comprehensive    Retained   Comprehensive
                                   Shares        Amount        Surplus       Income        Earnings      Income        Total
                                 -----------   -----------   -----------   -----------   -----------   -----------   -----------

<S>                              <C>           <C>           <C>           <C>           <C>           <C>           <C>     
Balance, December 31, 1997         1,209,085   $ 6,045,425   $ 3,764,000   $        --   $ 4,196,076   $   123,494   $14,128,995

Comprehensive income

 Net income for the six months 
  ended June 30, 1998                     --            --            --     1,020,932     1,020,932            --     1,020,932

Other comprehensive income, net of tax 
 Unrealized gains (losses) on securities,                              
  net of reclassification adjustment    
  (see disclosure)                        --            --            --       (11,064)           --      (11,064)      (11,064)
                                 -----------   -----------   -----------   -----------   -----------   -----------   -----------
Comprehensive income                                                       $ 1,009,868          
                                                                           ===========

Cash dividend                                                                                                 
 ($.30 per share)                         --            --            --                    (362,725)           --      (362,725)

                                 -----------   -----------   -----------                 -----------   -----------   -----------
Balance, June 30, 1998
 (Unaudited)                       1,209,085   $ 6,045,425   $ 3,764,000                 $ 4,854,283   $   112,430   $14,776,138
                                 ===========   ===========   ===========                 ===========   ===========   ===========


Disclosure of reclassification amount:

Unrealized holding gains (losses)    
   arising during the period                   $   (12,078)

Less: reclassification adjustment for      
 gains (losses) included in net income              (1,014)
                                               -----------
Net unrealized gains (losses) on securities    $   (11,064)
                                               ============
</TABLE>
<TABLE>
<CAPTION>
                                       Common Stock                                       Accumulated    Other
                                 -------------------------                Comprehensive    Retained   Comprehensive
                                   Shares        Amount        Surplus       Income        Earnings      Income        Total
                                 -----------   -----------   -----------   -----------   -----------   -----------   -----------
                                                                                                       
<S>                              <C>           <C>           <C>           <C>           <C>           <C>           <C>
Balance, December 31, 1996           806,107   $ 4,030,535   $ 3,764,000   $        --   $ 4,935,303   $  (80,560)   $12,649,278

Comprehensive income

 Net income for the six months 
  ended June 30, 1997                     --            --            --   $   951,092   $   951,092   $        --   $   951,092

 Other comprehensive income, net of tax
  Unrealized gains (losses) on securities,                                                          
   net of reclassification adjustment    
   (see disclosure)                       --            --            --   $    26,998   $        --   $    26,998   $    26,998
                                                                           -----------
Comprehensive income                                                       $   978,090
                                                                           ===========

Cash dividend                                                                                                 
  ($.27 per share)                        --            --            --                    (322,443)           --      (322,443)
                                 -----------   -----------   -----------                   -----------   -----------   -----------
Balance, June 30, 1997 
(Unaudited)                          806,107   $ 4,030,535   $ 3,764,000                   $ 5,563,952   $   (53,562)  $13,304,925
                                 ===========   ===========   ===========                   ===========   ===========   ===========


Disclosure of reclassification amount:

Unrealized holding gains (losses)    
 arising during the period                    $    26,998                                                    

Less: reclassification adjustment for                  --
 gains (losses) included in net income                                                                              
                                              -----------
Net unrealized gains (losses) on securities   $    26,998                                                           
                                              ===========
</TABLE>

The accompanying notes are an integral part of the financial statements
<PAGE>
6
<TABLE>
<CAPTION>
                       First West Virginia Bancorp Inc. and Subsidiaries
                            CONSOLIDATED  STATEMENTS  OF CASH FLOWS

                                                         Six Months Ended June 30,  
                                                            1998           1997
                                                       ------------    ------------
                                                               (Unaudited) 
                                                                        
<S>                                                    <C>             <C>
OPERATING ACTIVITIES                                                       
Net Income                                             $  1,020,932    $    951,092
Adjustments to reconcile net income to net cash
   provided by operating activities:
   Provision for loan losses                                103,000          61,500
   Depreciation and amortization                            186,695         183,335
   Amortization of investment securities, net               (34,767)        (19,567)
   Investment security losses (gains)                         1,608              -- 
   Decrease (increase) in interest receivable               (16,684)       (164,912)
   Increase (decrease) in interest payable                   16,054          (1,962)
     Other, net                                              21,616        (115,084)
                                                       ------------    ------------
  Net cash provided by operating activities               1,298,454         894,402
                                                       ------------    ------------
INVESTING ACTIVITIES                                                                    
Net (increase) decrease in federal funds sold               159,000       3,475,000 
Net (increase) decrease in loans, net of charge offs     (5,641,389)     (5,765,663)
Proceeds from sales of securities available for sale          2,595              -- 
Proceeds from maturities of securities 
  available for sale                                     21,448,170       6,550,000
Proceeds from maturities of securities 
  held to maturity                                          635,000       1,200,000
Principal collected on mortgage-backed securities         1,371,117         353,965
Purchases of securities available for sale              (20,621,494)    (10,524,617)
Purchases of securities held to maturity                 (2,989,855)     (1,163,639)
Recoveries on loans previously charged-off                   10,199           7,525
Purchases of premises and equipment                        (122,717)        (85,749)
                                                       ------------    ------------
       Net cash used by investing activities             (5,749,374)     (5,953,178)
                                                       ------------    ------------
FINANCING ACTIVITIES                                                                   
Net increase (decrease) in deposits                       3,606,112       8,133,250
Dividends paid                                             (362,725)       (322,443)
Increase (decrease) in short term borrowings              1,068,875      (2,777,591)
                                                       ------------    ------------
       Net cash provided by financing activities       $  4,312,262    $  5,033,216
                                                       ------------    ------------
INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                         (138,658)        (25,560)
CASH AND CASH EQUIVALENTS
  AT BEGINNING OF YEAR                                    4,815,483       4,671,060
                                                       ------------    ------------
CASH AND CASH EQUIVALENTS
  AT END OF PERIOD                                     $  4,676,825    $  4,645,500
                                                       ============    ============
</TABLE>
 
The accompanying notes are an integral part of the financial statements
<PAGE>
7
              First West Virginia Bancorp, Inc. and Subsidiaries
                NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                            June 30, 1998 AND 1997

1.  The accompanying financial statements are unaudited.  However in the
opinion of management, they contain the adjustments ( all of which are normal
and recurring in nature) necessary to present fairly the financial position
and the results of operations.  The notes to the financial statements
contained in the annual report for December 31, 1997, should be read in
conjunction with these financial statements.

2.  The provision for income taxes is at a rate which management believes will
approximate the effective rate for the year.

3.  Certain prior year amounts have been reclassified to conform to the 1998
presentation.

<PAGE>
8
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
        ---------------------------------------------------------------

     First West Virginia Bancorp, Inc., a West Virginia corporation
headquartered in Wheeling, West Virginia commenced operations in July, 1973
and has two wholly-owned subsidiaries:  Progressive Bank, N.A., which operates
in Wheeling, Wellsburg, and Moundsville, West Virginia and Bellaire, Ohio; and
Progressive Bank, N.A.-Buckhannon, which operates in Buckhannon and Weston,
West Virginia.  Following is a discussion and analysis of the significant
changes in the financial condition and results of operations of First West
Virginia Bancorp, Inc., (the Holding Company), and its subsidiaries for the
three months ended June 30, 1998 and 1997.  This discussion and analysis
should be read in conjunction with the Consolidated Financial Statements,
Notes, and tables contained in this report, as well as with the Holding
Company's 1997 financial statements, the notes thereto and the related
Management's Discussion and Analysis.

OVERVIEW

          The Holding Company reported net income of $501,192 for the three
months ended June 30, 1998 as compared to $474,485 for the same period during
1997.  The increase in earnings during the second quarter of 1998 over 1997
can be primarily attributed to increased net interest income and noninterest
income, offset in part by increased operating expenses and the provision for
loan losses.  Earnings per share were $.41 in the second quarter of 1998, an
increase of 5.6% over the $.39 earned during the second quarter of 1997.
          Net income for the six months ended June 30, 1998 was $1,020,932
compared to $951,092 for the same period during 1997.  The increase in
earnings for the six months ended June 30, 1998 as compared to the same period
in 1997 was primarily due to increased net interest income and noninterest
income, offset in part by increased noninterest expenses and the provision for
loan losses.  Earnings per share were $.84 for the first six months of 1998,
an increase of 7.3%, as compared to $.79 earned during the same period during
1997. 
          Operational earnings were improved with net interest income
increasing $53,031 or 3.1%, for the three months ended June 30, 1998 as
compared to the same period in 1997.  During the three month period ended June
30, 1998, net interest income increased primarily from the increase in the
average volume of loans, offset in part by the increased interest paid on time
deposits and the decrease in the average volume of investment securities. 
During the six month period ended June 30, 1998, the increase in net interest
income was primarily due to the increased interest earned on the average
volume of loans, offset in part by the increase in the interest paid on the
average volume of time deposits. 
          Return on average assets (ROA) measures the effectiveness of asset
utilization to produce net income.  ROA was 1.24% for the three month period
ended June 30, 1998 as compared to 1.25% for the same period of the prior
year. The ROA was 1.28% for both of the six month periods ended June 30, 1998
and 1997. Return on average equity (ROE) measures the return on the
stockholders' investment.  The Holding Company's ROE was 13.80% for the three
months ended June 30, 1998 and 14.39% at June 30, 1997.  For the six months
ended June 30, 1998 compared to June 30, 1997, ROE was 14.39% and 14.69%,
respectively.
          Table One is a summary of Selected Financial Data of the Holding
Company.  The sections that follow discuss in more detail the information
summarized in Table One.


<PAGE>
9
<TABLE>
<CAPTION>
                                  First West Virginia Bancorp, Inc.
                  Management's Discussion and Analysis of the Financial Condition and
                                Results of Holding Company Operations
             ------------------------------------------------------------------------------

Table One
SELECTED  FINANCIAL  DATA
(Unaudited, figures in thousands, except per share data)

                                                             First West Virginia Bancorp, Inc.

                                      Three months ended       Six months ended                Years ended
                                            June 30,                June 30,                   December 31,
                                    ---------------------    --------------------    ---------------------------------
                                       1998        1997        1998        1997        1997         1996        1995 
                                    ---------    --------    --------    --------    ---------    --------    --------
                                                                                            
<S>                                 <C>          <C>         <C>         <C>          <C>         <C>          <C>
SUMMARY OF OPERATIONS                                                                                               
   Total interest income            $  3,063     $  2,845    $  6,080    $  5,543     $ 11,507    $ 10,067    $  8,937
   Total interest expense              1,326        1,161       2,603       2,249        4,745       3,925       3,421
   Net interest income                 1,737        1,684       3,477       3,294        6,762       6,142       5,516
   Provision for loan losses              56           36         103          62          131          71          50
   Total other income                    183          154         373         328          639         568         738
   Total other expenses                1,126        1,092       2,235       2,136        4,377       4,182       4,007
   Income before income taxes            738          710       1,512       1,424        2,893       2,457       2,198
   Net income                            501          474       1,021         951        1,931       1,644       1,470

PER SHARE DATA (1)                                                                                              
   Net income                       $   0.41     $   0.39    $   0.84    $   0.79    $    1.60    $   1.36    $   1.22 
   Cash dividends declared (2)          0.15         0.14        0.30        0.27         0.54        0.47        0.34
   Book value per share                12.22        11.00       12.22       11.00        11.69       10.46        9.68

AVERAGE BALANCE SHEET SUMMARY                                                                                   
   Total loans, net                 $ 98,882     $ 83,860    $ 97,482    $ 81,855    $  86,609    $ 74,469    $ 66,058
   Investment securities              46,086       54,007      46,494      52,548       51,754      48,557      46,020
   Deposits - Interest Bearing       126,430      120,021     125,300     117,826      120,589     112,768     100,488
   Long-term debt                         --           --          --          --           --          --          -- 
   Stockholders' equity               14,557       13,209      14,304      13,056       13,400      12,186      11,170
   Total Assets                      162,415      152,450     161,000     150,354      153,290     137,810     124,145

SELECTED RATIOS
   Return on average assets            1.24%        1.25%       1.28%       1.28%        1.26%       1.19%       1.18%
   Return on average equity           13.80%       14.39%      14.39%      14.69%       14.41%      13.49%      13.16%
   Average equity to average assets    8.96%        8.66%       8.88%       8.68%        8.74%       8.84%       9.00%
   Dividend payout ratio (1) (2)      36.59%       35.90%      35.71%      34.18%       33.75%      34.56%      27.87%
   Loan to Deposit ratio              71.63%       64.57%      71.63%      64.57%       69.59%      64.19%      62.67%
</TABLE>

<TABLE>
<CAPTION>
BALANCE SHEET                             June 30,                    December 31,
                                  ----------------------    -----------------------------------
                                     1998        1997           1997        1996        1995
                                  ----------  ----------    -----------  ----------  ----------
                                                                    
   <S>                            <C>         <C>            <C>         <C>         <C>
   Investments                    $   45,614  $   54,086     $   45,444  $   50,440  $   45,996
   Loans                             100,753      86,143         95,374      80,417      72,006
   Other Assets                       15,105      10,392         15,325      13,689       9,953
                                  ----------  ----------     ----------  ----------  ----------
      Total Assets                $  161,472  $  150,621     $  156,143  $  144,546  $  127,955
                                  ==========  ==========     ==========  ==========  ==========
   Deposits                       $  140,651  $  133,404     $  137,045  $  125,271  $  114,895
   Repurchase agreements               5,144       3,153          4,075       5,931         749
   Other Liabilities                     901         759            894         695         602
   Shareholders' Equity               14,776      13,305         14,129      12,649      11,709
                                  ----------  ----------     ----------  ----------  ----------
      Total Liabilities and                              
      Shareholders' Equity        $  161,472  $  150,621     $  156,143  $  144,546  $  127,955
                                  ==========  ==========     ==========  ==========  ==========
</TABLE>
(1)  Adjusted for 3 for 2 stock split in the effect of a fifty (50) percent
common stock dividend to shareholders of record as of October 1, 1997; the 4
percent common stock dividend to stockholders of record as of December 2,
1996, a 2 percent common stock dividend to stockholders of record as of
December 1, 1995 and the two-for-one stock split effective April 15, 1994.

(2)  Cash dividends and the related payout ratio are based on historical
results of the Holding Company and do not include cash dividends of acquired
subsidiaries prior to the dates of consummation.

<PAGE>
10
                        First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------
Earnings Analysis

Net Interest Income
-------------------
          The primary source of earnings for the Holding Company is net
interest income, which is the difference between interest earned on loans and
investments and interest paid on deposits and other liabilities.  Changes in
the volume and mix of earning assets and interest bearing liabilities combined
with changes in market rates of interest greatly affect net interest income. 
Tables Two and Three analyze the changes in net interest income for the three
months ended June 30, 1998 and 1997 and for the six months ended June 30, 1998
and 1997, respectively.
          Net interest income increased $53,031 or 3.1%, during the three
month period ended June 30, 1998 as compared to 1997.  The increase in net
interest income resulted primarily from the increased interest earned on loans
offset in part by the decreased interest earned on investment securities and
the increased interest paid on time deposits.  Interest and fees on loans
increased $316,362 or 16.5% during the three month period ended June 30, 1998
as compared to the same period in 1997 due to the increase in average loan
volume.  Interest and dividend income on investment securities decreased
$139,337, or 16.8% for the three months ended June 30, 1998 as compared to the
same period in 1997 primarily due to the decrease in the average volume of
investments.  Interest expense increased $164,440, or 14.2%, during the three
month period ended June 30, 1998, as compared to the same period in 1997
primarily due to the increase in the average volume of time deposits. 
          For the six months ended June 30, 1998, net interest income
increased $183,014 or 5.6%, as compared to 1997.  This increase was largely
due to the increased interest earned on loans offset in part by the decreased
interest earned on investment securities and the increased interest paid on
time deposits.  Comparing the six month period ended June 30, 1998 to the same
period in 1997, interest and fees on loans increased $698,100 or 18.8%
primarily due to the increase in the average loan volume.  For the six months
ended June 30, 1998, interest and dividends on investment securities decreased
$193,751 or 12.0% as compared to the same period in 1997.  Interest expense
for the six months ended June 30, 1998 increased $353,410 or 15.7% primarily
due to the increase in the average volume of time deposits.

Noninterest Income
-------------------
     Noninterest income increased $29,599 or 19.3% for the three months ended
June 30, 1998 as compared to the same period of the prior year.  Service
charges represent the major component of noninterest income.  These charges
are earned from assessments made on checking and savings accounts.  Service
charges increased $12,763 during the three month period ended June 30, 1998,
up 12.2%, as compared to the same period of the prior year.  The increase in
service charges in 1998 was primarily due to an increase in the number of 
charges assessed on deposit accounts.  Other operating income increased
$16,836 or 34.4% primarily due to the increased automated teller
machine(ATM)fees.
     For the six months ended June 30, 1998, noninterest income increased
$45,389 or 13.8% as compared to the same period in 1997.  Service charges on
checking and savings accounts contributed to the increased noninterest income. 
Service charges increased $29,124 or 14.9%, as compared to the same period in
1997.  Other operating income increased $17,873 during the six months ended
June 30, 1998 as compared to the same period of the prior year and was
primarily attributable to the increased ATM fees.  The investment securities
loss during the six month period ended June 30, 1998 was attributable to the
holding company's sale of marketable equity securities available for sale.  

Non-Interest Expense
--------------------
     Noninterest expense increased $34,405 or 3.2% for the three months ended
June 30, 1998 as compared to the same period of the prior year.  Salary and
employee benefits is the largest component of non-interest expense.  During
the quarter ended June 30, 1998, salary and employee benefits increased
$20,964 or 3.7%.  The increase was primarily attributable to normal annual
merit adjustments in salaries.  
     Noninterest expense increased $99,112 or 4.6% for the six months ended
June 30, 1998 as compared to the same period of the prior year.  Salary and
employee benefits is the largest component of noninterest expense.  During the
six months ended June 30, 1998, salary and employee benefits increased $51,924
or 4.5%.  The increase was primarily attributable to normal annual merit
adjustments in salaries.  The major components of other operating expenses
include: stationery and supplies, directors fees, service expense, postage and
transportation, other taxes, advertising, and regulatory assessment and
deposit insurance.  Other operating expenses increased $29,703, or 4.8%, for
the six month period ended June 30, 1998 as compared to the same period in the
prior year.  Increased stationery and supplies expense, service expense, and
postage expense, offset in part by decreased other expenses and directors fees
primarily contributed to the increase in otheroperating expenses during 1998.  


<PAGE>
11
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------
Table Two
Average Balance Sheets and Interest Rate Analysis (in thousands)

The following table presents an average balance sheet, interest earned on
interest bearing assets, interest paid on interest bearing liabilities,
average interest rates and interest differentials for the six months ended
June 30, 1998 and June 30, 1997 and the year ended December 31, 1997.  Average
balance sheet information as of June 30, 1998 and June 30, 1997 and the year
ended December 31, 1997 was compiled using the daily average balance sheet. 
Loan fees and unearned discounts were included in income for average rate
calculation purposes.  Non-accrual loans were included in the average balance
computations; however, no interest was included in income subsequent to the
non-accrual status classification.  Average rates were annualized for the six
month periods ended June 30, 1998 and 1997.

<TABLE>
<CAPTION>
                                               For the Six                                                     For the Six
                                               Months ended                                                    Months ended
                                              June 30, 1998                   December 31, 1997                June 30, 1997 
                                        ---------------------------    ----------------------------    ---------------------------
                                        Average               Average   Average              Average   Average              Average
                                        Volume     Interest    Rate     Volume     Interest    Rate     Volume    Interest    Rate
                                        --------   --------   -----    ---------   --------   -----    --------   --------   -----
                                                                              (expressed in thousands)                     
<S>                                     <C>        <C>        <C>      <C>         <C>        <C>      <C>        <C>        <C> 
ASSETS:                                                                                                                    
Investment securities:                                                                                                     
 U.S. Treasury and other U. S.                                                                                             
   Government agencies                  $ 38,985   $  1,232    6.37%   $ 45,157   $  2,861    6.34%   $ 45,753   $  1,436    6.33%
 Obligations of states and                                                                                                        
   political subdivisions                  6,597        158    4.83%      5,470        264    4.83%      5,638        137    4.90%
 Other securities                            912         25    5.53%      1,127         69    6.12%      1,157         36    6.27%
                                        --------   --------   -----    --------   --------   -----    --------   --------   -----
    Total Investment securities:          46,494      1,415    6.14%     51,754      3,194    6.17%     52,548      1,609    6.17%
   
Interest bearing deposits                  2,098         57    5.48%        533         28    5.25%        924         24    5.24%
Federal funds sold                         7,095        194    5.51%      6,561        357    5.44%      7,280        194    5.37%
Loans, net of unearned income             97,482      4,414    9.13%     86,609      7,928    9.15%     81,855      3,716    9.15%
                                        --------   --------   -----    --------   --------   -----    --------   --------   -----
 Total earning assets                    153,169      6,080    8.00%    145,457     11,507    7.91%    142,607      5,543    7.84%
                                                                                                                       
Cash and due from banks                    4,290                          4,104                          4,031        
Bank premises and equipment                3,040                          3,178                          3,219        
Other assets                               1,711                          1,741                          1,671        
Allowance for possible loan losses        (1,210)                        (1,190)                        (1,174)       
                                        --------                       --------                       --------              
 Total Assets                           $161,000                       $153,290                       $150,354
                                        ========                       ========                       ========
LIABILITIES                                                                                            
Certificates of deposit                 $ 59,301   $  1,632    5.55%   $ 55,149   $  2,945    5.34%   $ 53,633   $  1,392    5.23%
Savings deposits                          42,770        627    2.96%     41,376      1,102    2.66%     39,344        493    2.53%
Interest bearing demand deposits          23,230        236    2.05%     24,064        509    2.12%     24,849        261    2.12%
Federal funds purchased and
   Repurchase agreements                   5,972        108    3.65%      5,118        189    3.69%      5,733        103    3.62%
                                        --------   --------   -----    --------   --------   -----    --------   --------   ----- 
Total interest bearing liabilities       131,273      2,603    4.00%    125,707      4,745    3.77%    123,559      2,249    3.67%
Demand deposits                           14,389                         13,235                         12,858
Other liabilities                          1,034                            948                            881
                                        --------                       --------                       --------
 Total Liabilities                       146,696                        139,890                        137,298
STOCKHOLDERS' EQUITY                      14,304                         13,400                         13,056
                                        --------                       --------                       --------
 Total Liabilities                                                                                     
    and Stockholders' Equity            $161,000                       $153,290                       $150,354
                                        ========                       ========                       ========
 Net yield on earning assets                       $  3,477    4.58%              $  6,762    4.65%              $  3,294    4.66%
                                                   ========   =====               ========   =====               ========   =====
</TABLE>
The fully taxable equivalent basis of interest income from obligations of
states and political subdivisions has been determined using a combined Federal
and State corporate income tax rate of 40% for the six months ended June 30,
1998 and 1997, and the year ended December 31, 1997, respectively.  The effect
of this adjustment is presented below (in thousands).

<TABLE>
<CAPTION>
 <S>                                   <C>          <C>       <C>     <C>         <C>          <C>     <C>       <C>         <C>
 Obligations of states and
   political subdivisions:
    Investment securities              $   6,597    $   263   8.05%   $   5,470   $    440     8.04%   $  5,638  $    228    8.17%
    Loans                                 97,482      4,480   9.27%      86,609      8,018     9.26%     81,855     3,752    9.24%
                                        ========   ========   =====    ========   ========    =====    ========  ========   =====
 Total earning assets                  $ 153,169    $ 6,251   8.23%   $ 145,457   $ 11,773     8.09%   $142,607  $  5,670    8.02%
                                        ========   ========   =====    ========   ========    =====    ========  ========   =====
 Taxable equivalent net yield on
 earning assets                                     $ 3,648   4.80%               $  7,028     4.83%             $  3,421    4.84%
                                                   ========   =====               ========    =====              ========   =====
</TABLE>
---------------------------------------------------------------------------
<PAGE>
12

                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------

Table Three
Distribution of Assets, Liabilities and Stockholders' Equity; Interest Rates
and Interest Differential

The following table presents an average balance sheet, interest earned on
interest bearing assets, interest paid on interest bearing liabilities,
average interest rates and interest differentials for the three months ended
June 30, 1998 and June 30, 1997.  Average balance sheet information as of June
30, 1998 and June 30, 1997 was compiled using the daily average balance sheet. 
Loan fees and unearned discounts were included in income for average rate
calculation purposes.  Non-accrual loans were included in the average balance
computations; however, no interest was included in income subsequent to the
non-accrual status classification.  Average rates were annualized for the
three month periods ended June 30, 1998 and 1997.

<TABLE>
<CAPTION>
                                                    For the Three                          For the Three
                                                    Months ended                           Months ended
                                                    June 30, 1998                          June 30, 1997
                                          --------------------------------       --------------------------------
                                            Average                 Average        Average                 Average
                                            Volume      Interest     Rate          Volume      Interest     Rate
                                          ----------   ----------    -----       ----------   ----------    -----
<S>                                       <C>            <C>       <C>           <C>            <C>       <C>
ASSETS:
Investment securities:
   U.S. Treasury and other U. S.                      
     Government agencies                  $   37,871   $      593     6.28%      $   47,244   $      747     6.34%
   Obligations of states and                          
     political subdivisions                    7,239           86     4.77%           5,615           66     4.71%
   Other securities                              976           13     5.34%           1,148           18     6.29%
                                          ----------   ----------    -----       ----------   ----------    -----
Total Investment Securities                   46,086          692     6.02%          54,007          831     6.17% 
Interest bearing deposits                      3,280           46     5.63%             440            6     5.47%
Federal funds sold                             6,467           89     5.52%           6,347           88     5.56%
Loans, net of unearned income                 98,882        2,236     9.07%          83,860        1,920     9.18%
                                          ----------   ----------    -----       ----------   ----------    -----
   Total earning assets                      154,715        3,063     7.94%         144,654        2,845     7.89%
                                                     
Cash and due from banks                        4,120                                  4,020
Bank premises and equipment                    3,029                                  3,196
Other assets                                   1,738                                  1,761
Allowance for possible loan losses            (1,187)                                (1,181)
                                          ----------                             ----------
   Total Assets                           $  162,415                             $  152,450
                                           =========                              =========
LIABILITIES                                           
Certificates of deposit                   $   59,782   $      829     5.56%      $   54,806   $      720     5.27%
Savings deposits                              43,132          321     2.99%          40,638          260     2.57%
Interest bearing demand deposits              23,516          119     2.03%          24,577          130     2.12%
Federal funds purchased and                           
   Repurchase agreements                       6,150           57     3.72%           5,312           51     3.85%
                                          ----------   ----------    -----       ----------   ----------    -----
   Total interest bearing liabilities        132,580        1,326     4.01%         125,333        1,161     3.72%
Demand deposits                               14,268                                 13,005
Other liabilities                              1,010                                    903
                                          ----------                             -----------
   Total Liabilities                         147,858                                139,241
SHAREHOLDERS' EQUITY                          14,557                                 13,209
                                          ----------                             ----------
   Total Liabilities                                  
      and Shareholders' Equity            $  162,415                             $  152,450
                                           =========                             ==========    
Met yield on earning assets                            $    1,737     4.50%                   $    1,684     4.67%
                                                       ==========    =====                    ==========    =====
</TABLE>
The fully taxable equivalent basis of interest income from obligations of
states and political subdivisions has been determined using a combined Federal
and State corporate income tax rate of 40% for the three months ended June 30,
1998 and 1997, respectively.  The effect of this adjustment is presented below
(in thousands).

<TABLE>
<CAPTION>
   <S>                                    <C>          <C>           <C>         <C>          <C>           <C>
   Obligations of states and
     political subdivisions:
     Investment securities                $    7,239   $      143     7.94%      $    5,615   $      110     7.86%
     Loans                                    98,882        2,269     9.20%          83,860        1,939     9.27%
                                          ==========   ==========    =====       ==========   ==========    =====
   Total earning assets                   $  154,715   $    3,153     8.17%      $  144,654   $    2,908     8.06%
                                          ==========   ==========    =====       ==========   ==========    =====
 
   Taxable equivalent net yield on     
     earning assets                                    $    1,827      4.74%                  $    1,747      4.84%
                                                       ==========    ======                   ==========    ======
</TABLE>
<PAGE>
13                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------
Balance Sheet Analysis

Investments
-----------
     Investment securities increased $170,074 or .4% from $45,443,954 at
December 31, 1997, to $45,614,028 at June 30, 1998. Taxable securities
comprised 83.2% of total securities at June 30, 1998, as compared to 88.4% at
December 31, 1997.  The corporation does not have any securities of issuers,
other than U.S. Government and U.S. Government agencies and corporations,
which exceed 10 percent of stockholders' equity as of June 30, 1998. Other
than the normal risks inherent in purchasing U.S. Treasury securities, U.S.
Government corporation and agencies securities, and obligations of states and
political subdivisions, i.e. interest rate risk, management has no knowledge
of other market or credit risk involved in these investments.  The corporation
does not have any high risk hybrid/derivative instruments.
     As of June 30, 1998, the Holding Company had approximately 84% of the
investment portfolio classified as available for sale, while 16% was
classified as held to maturity.  As the investment portfolio consists
primarily of fixed rate debt securities, changes in the market rates of
interest will effect the carrying value of securities available for sale,
adjusted upward or downward under the requirements of FAS 115.  As market
rates of interest were improved, the carrying value of securities available
for sale was increased by $178,377 and $195,928 at June 30, 1998 and December
31, 1997, respectively.  The market value of securities classified as held to
maturity was above book value by $61,268 and $59,428 at June 30, 1998 and
December 31, 1997, respectively. 

Table Four
Investment Portfolio

The following table presents the book values of investment securities at June
30, 1998 and 1997 and at December 31, 1997:
(in thousands)  (Unaudited):

                                        June 30,  December 31,  June 30,
                                          1998       1997        1997
                                        -------     -------     -------
Securities held to maturity:
  U.S. Treasury securities and
    obligations of U.S. Government
    corporations and agencies           $    --     $    --     $   500
Obligations of states
    and political subdivisions            7,133       4,778       5,022
                                        -------     -------     -------
       Total held to maturity           $ 7,133     $ 4,778     $ 5,522
                                        -------     -------     -------

Securities available for sale :
U.S. Treasury securities and
    obligations of U.S. Government
    corporations and agencies            30,385     $32,027     $42,845
Obligations of states
    and political subdivisions              514         516         509
Corporate debt securities                   207         209         508
Mortgage-backed securities                6,573       7,287       4,080
Equity Securities                           802         627         622
                                        -------     -------     -------
       Total available for sale          38,481      40,666      48,564
                                        -------     -------     -------
       Total                            $45,614     $45,444     $54,086
                                        =======     =======     =======

-----------------------------------------------------------------------

<PAGE>
14
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------

Table Five
Investment Portfolio ( Continued)
(in  thousands)

The maturity distribution using book value including accretion of discounts
and amortization of premiums  (expressed in thousands) and approximate yield
of investment securities at June 30, 1998 and December 31, 1997 are presented
in the following table. Tax equivalent yield basis was used on tax exempt
obligations.  Approximate yield was calculated using a weighted average of
yield to maturities.

<TABLE>
<CAPTION>
                                                   June 30, 1998                                  December 31, 1997
                                   ---------------------------------------------    ----------------------------------------
                                       Securities                Securities            Securities              Securities
                                   Held to Maturity          Available for Sale     Held to Maturity       Available for Sale
                                  --------------------      --------------------    --------------------      ------------------
                                   Amount        Yield       Amount       Yield      Amount       Yield       Amount     Yield
                                  --------      ------      --------      ------     --------     ------      --------   ------
                                                     (Unaudited)
                                                                                                 
<S>                                <C>         <C>        <C>               <C>      <C>
U.S. Treasury and other U.S.
   Government Agencies

  Within One Year                  $     --        -- %      $   6,312        6.14 %     $     --       -- %  $ 7,794    6.11 % 
  After One But                                                                                                       
     Within Five Years                   --        --           13,920        6.10             --       --     21,970    6.38
  After Five But                                                                                                      
     Within Ten Years                    --        --           10,153        6.40             --       --      2,263    6.94
  After Ten Years                        --        --               --          --             --       --         --      --
                                    -------     -----          -------      ------       --------   ------   --------    ----
                                         --        --           30,385        6.21             --       --     32,027    6.35

States & Political Subdivisions

  Within One Year                       695      8.59              --          --             436     6.31         --      --
  After One But                                                                                                               
     Within Five Years                3,309      6.64              --          --           3,238     7.16         --      --
  After Five But                                                                                                          
     Within Ten Years                 2,691      7.15             514         7.48            941     7.55        516    7.46
  After Ten Years                       438      7.00              --           --            163     7.72         --      --
                                    -------     -----          -------      ------       --------   ------   --------    ----
                                      7,133      7.04             514         7.48          4,778     7.18        516    7.46

Corporate Debt Securities

  Within One Year                        --        --             101        7.73              --       --         --      --
  After One But                                                                                                              
     Within Five Years                   --        --             106        8.02              --       --        209    7.83
                                    -------     -----         -------      ------        --------   ------   --------   ----
                                         --        --             207        7.88              --       --        209    7.83
                                                                                                                              
Mortgage-Backed Securities               --        --           6,573        6.54              --       --      7,287    6.55
                                                                                                              
Equity Securities                        --        --             802        5.90              --       --        627    5.45
                                    -------     -----         -------      ------        --------   ------    -------   -----
  Total                             $ 7,133      7.04%        $38,481        6.29%       $  4,778     7.18%   $40,666    6.39%
                                    =======     ======        =======      ======        ========   ======    ========  =====

</TABLE>
<PAGE>
15
 
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------
Loans
-----

     Loans as of June 30, 1998 were $100,752,760 as compared to $95,373,653 as
of December 31, 1997, an increase of 5.6%.  The loan growth can be attributed
primarily to increases in commercial loans, installment loans and residential
real estate loans which increased approximately $3,065,000, $1,693,000, and
$436,000, respectively.  The increase in commercial loans were primarily the
result of expansion of area businesses due to the extension of a subsidiary
bank's market area.  Increases in third party paper with various automobile
dealers contributed to the increase in installment loans.  Loan growth was
funded principally through the increase in deposits.  
     Real estate residential loans which include real estate construction,
real estate farmland, and real estate residential loans comprise thirty-three
percent (33%) of the loan portfolio.  Commercial loans which include real
estate secured by non-farm, non residential and commercial and industrial
loans comprise thirty-nine percent (39%) of the loan portfolio.  Installment
loans comprise twenty-four percent (24%) of the loan portfolio.  Other loans
include nonrated industrial development obligations, direct financing leases
and other loans comprise four percent (4%) of the loan portfolio.  The changes
in the composition of the loan portfolio from December 31, 1997 to June 30,
1998 were a 1% increase in commercial loans, a 1% increase in installment
loans, and a 2% decrease in real estate residential loans.  
     The loan portfolio is not dominated by concentrations of credit within
any one industry; therefore, the impact of a weakening economy on any
particular industry should be minimal.  Management believes that the loan
portfolio does not contain any excessive or abnormal elements of risk.

Table Six
Loan Portfolio
(Unaudited)

Loans outstanding are as follows (in thousands) :

                                         June 30,                December 31,
                                 -------------------------       ----------
                                   1998            1997             1997
                                           
                                                            
Real Estate - Residential                  
Real estate-construction       $       150     $       357     $       334
Real estate-farmland                   156             125             122
Real estate-residential             33,196          30,248          32,610
                                 ----------      ----------      ----------
                               $    33,502     $    30,730     $    33,066
                                 ----------      ----------      ----------
                                           
     Commercial                            
Real estate-secured by                     
   nonfarm, nonresidential     $    26,740     $    22,068     $    23,925
Commercial & industrial             12,627          11,020          12,377
                                 ----------      ----------      ----------
                               $    39,367     $    33,088     $    36,302
                                 ----------      ----------      ----------
                                           
     Installment                           
Installment and other                      
   loans to individuals        $    24,180     $    20,131     $    22,487
                                 ----------      ----------      ----------
                                           
       Others                              
Nonrated industrial                        
   development obligations     $     3,752     $     2,045     $     3,517
Direct Financing Leases                 47             206              70
Other loans                             14              39              40
                                 ----------      ----------      ----------
                               $     3,813     $     2,290     $     3,627
                                 ----------      ----------      ----------
                                           
Total                              100,862          86,239          95,482
Less unearned interest                 109              96             108
                                 ----------      ----------      ----------
                               $   100,753     $    86,143     $    95,374
                                  =========       =========       =========

<PAGE>
16
 
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------
Table Seven                                                                   
Loan Portfolio -  Maturities  and  sensitivities  of Loans to Changes in
Interest Rates
                                                                             
The following table presents the contractual maturities of loans other than
installment loans and residential mortgages for all banks as of June 30, 1998
and December 31, 1997 (in thousands) (Unaudited):

                                                June 30, 1998      
                                  ---------------------------------------
                                                After one                
                                  In one        Year Through    After    
                                  Year or Less  Five Years      Five Years
                                  ------------  ------------    ----------
                                                      
  Commercial                    $    1,949     $    6,655      $    4,023  
  Real Estate - construction           150             --              --    
                                  ---------      ---------       --------- 
     Total                      $    2,099     $    6,655      $    4,023  
                                   ========       ========        ======== 

                                                December 31, 1997         
                                  --------------------------------------- 
                                                After one  
                                  In one        Year Through    After
                                  Year or Less  Five Years      Five Years
                                  ------------  ------------    ----------
                                                      
  Commercial                    $    1,088     $    7,769      $    3,520 
  Real Estate - construction           333             --              -- 
                                  ---------      ---------       ---------
     Total                      $    1,421     $    7,769      $    3,520 
                                   ========       ========        ========

The following table presents an analysis of fixed and variable rate loans as
of June 30, 1998 and December 31, 1997 along with the contractual maturities
of loans other than installment loans and residential mortgages (in thousands)
(Unaudited):
                                                June 30, 1998 
                                  ---------------------------------------
                                                After one
                                  In one        Year Through    After
                                  Year or Less  Five Years      Five Years
                                  ------------  ------------    -----------
                                                      
  Fixed Rates                   $    1,301     $    6,110      $    1,163
  Variable Rates                       798            545           2,860
                                  ---------      ---------       ---------
     Total                      $    2,099     $    6,655      $    4,023
                                   ========       ========        ========
 
                                               December 31, 1997 
                                  ---------------------------------------
                                                After one
                                 In one        Year Through    After
                                 Year or Less  Five Years      Five Years
                                  ---------------------------- ----------
                                                      
  Fixed Rates                   $    1,122    $    6,326       $    1,237 
  Variable Rates                       299         1,443            2,283 
                                  ---------     ---------        ---------
     Total                      $    1,421    $    7,769       $    3,520 
                                   ========      ========         ======== 

---------------------------------------------------------------------------
<PAGE>
17
                        First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------
     Total non-performing loans were $672,000 at June 30, 1998 and $839,000 at
December 31, 1997, a decrease of 20.0%.  Loans classified as non-accrual were
$482,000 or .5% of total loans as of June 30, 1998, as compared to $540,000 or
 .6% of total loans at December 31, 1997.  There were no loans classified as
renegotiated as of June 30, 1998 and 1997, respectively.  The loans past due
90 days or more decreased $45,000 to $174,000 at June 30, 1998 as compared to
$219,000 at December 31, 1997.  Other real estate owned decreased $20,000
during the second quarter due to the sale of property by a subsidiary bank. 
Management continues to monitor the non-performing assets to ensure against
deterioration in collateral values. 

Table Eight
Risk Elements
(UNAUDITED)

The following table presents loans which are in the process of collection, but
are contractually past due 90 days or more as to interest or principal,
non-accrual loans and other real estate ( in thousands):

                                      June 30,        December 31,
                                 -----------------     ------------
                                  1998      1997          1997

Past Due 90 Days or More:
  Real Estate - residential    $     24  $    304    $          45
  Commercial                         16       139               70
  Installment                       134        56              104
                                 -------   -------     ------------
                               $    174  $    499    $         219
                                 -------   -------     ------------
Non-accrual:
  Real Estate - residential      $   181   $   120     $        139
  Commercial                         272       170              353
  Installment                         29        14               48
                                 -------   -------     ------------
                                 $   482   $   304     $        540
                                 -------   -------     ------------

Other Real Estate                $    16   $    49     $         80
                                 -------   -------     ------------

Total non-performing assets      $   672   $   852      $       839 
                                 =======   =======      =========== 

Total non-performing assets 
   to total loans and 
   other real estate              0.67%      0.99%            0.88% 

Generally, all Banks recognize interest income on the accrual basis, except
for certain loans which are placed on a non-accrual status.  Loans are placed
on a non-accrual status, when in the opinion of management doubt exists as to
its collectibility.  In accordance with the Office of the Comptroller of the
Currency Policy, banks may not accrue interest on any loan which either the
principal or interest is past due 90 days or more unless the loan is both well
secured and in the process of collection.

The amount of interest income that would have been recognized had the loans
performed in accordance with their original terms was approximately $30,500
and $9,200 for the periods ended June 30, 1998 and 1997, respectively.

As of June 30, 1998, there are no loans known to management other than those
previously disclosed about which management has any information about possible
credit problems of borrowers which causes management to have serious doubts as
to the borrower's ability to comply with present loan repayment terms.

------------------------------------------------------------------------------
<PAGE>
18
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------

Allowance for Possible Loan Losses
----------------------------------

     The corporation maintains an allowance for possible loan losses to absorb
probable loan losses.  Table Nine presents a summary of the Allowance for
Possible Loan Losses.  The provision for loan losses increased to $56,500
during the three months ended June 30, 1998, from $36,000 during the same
period of the prior year.  The increased loan growth combined with the
increase in net charge-offs and non-performing assets has prompted the
increase in the provision for loan losses.  The allowance for possible loan
losses represented 1.1% and 1.3% of loans outstanding as of June 30, 1998 and
December 31, 1997, respectively.  Net loan charge-offs were $188,000 during
the second quarter of 1998.  The net charge-offs during the three month period
ended June 30, 1998 were primarily commercial and installment loans.  The
reserve for possible loan losses is considered to be adequate to provide for
future losses in the portfolio.  The amount charged to earnings is based upon
management's evaluations of the loan portfolio, as well as current and
anticipated economic conditions, net loans charged off, past loan experiences,
changes in character of the loan portfolio, specific problem loans and
delinquencies and other factors.

Table Nine
Analysis of Allowance for Possible Loan Losses
(UNAUDITED)

The following table presents a summary of loans charged off and recoveries of
loans previously charged off by type of loan (in thousands).

                                           Summary of Loan Loss Experience
                                         -----------------------------------
                                               June 30,           December 31,
                                         -------------------      ------------ 
                                          1998       1997           1997

Balance at Beginning of period
  Allowance for Possible
     Loan Losses                       $   1,218  $   1,160      $    1,160 

Loans Charged Off:
  Real Estate - residential                   65         --              18
  Commercial                                 134          1              --
  Installment                                 63         39              67
                                         --------   --------      ----------
                                             262         40              85
Recoveries:
  Real Estate - residential                    5         --              --
  Commercial                                  --          3               3
  Installment                                  5          5               9
                                         --------   --------      ----------
                                              10          8              12

Net Charge-offs                              252         32              73 


Additions Charged to Operations              103         62             131
                                         --------   --------      ----------

Balance at end of period:              $   1,069  $   1,190      $    1,218
                                          =======    =======       =========

Average Loans Outstanding              $  97,482  $  81,855     $    86,609
                                          =======    =======       =========
Ratio of net charge-offs
   to Average loans
  outstanding for the period                 .26%       .04%            .08%

Ratio of the Allowance for Loan 
  Losses to Loans Outstanding for 
   the period                               1.06%      1.38%           1.28%

The additions to the allowance for loan losses are based on management's
evaluation of characteristics of the loan portfolio, current and anticipated
economic conditions, past loan experiences, net loans charged-off, specific
problem loans and delinquencies, and other factors.
------------------------------------------------------------------------------
<PAGE>
19
 
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------
Allowance for Possible Loan Losses - continued
-----------------------------------------------

The corporation has allocated the allowance for possible loan losses to
specific portfolio segments based upon historical net charge-off experience,
changes in the level of non-performing assets, local economic conditions and
management experience as presented in Table Nine.  The Corporation has
historically maintained the allowance for loan losses at a level greater than
actual charge-offs.  In determining the allocation of the allowance for
possible loan losses, charge-offs for 1998 are anticipated to be within the
historical ranges.  Although a subjective evaluation is determined by
management, the corporation believes it has appropriately assessed the risk of
loans in the loan portfolio and has provided for an allowance which is
adequate based on that assessment. Because the allowance is an estimate, any
change in the economic conditions of the corporation's market area could
result in new estimates which could affect the corporation's earnings. 
Management monitors loan quality through reviews of past due loans and all
significant loans which are considered to be potential problem loans on a
monthly basis.  The internal loan review function provides for an independent
review of commercial, real estate, and installment loans in order to measure
the asset quality of the portfolio.  Management's review of the loan portfolio
has not indicated any material amount of loans, not disclosed in the
accompanying tables and discussions which are known to have possible credit
problems that cause management to have serious doubts as to the ability of
each borrower to comply with their present loan repayment terms. 

Table Ten
Loan Portfolio  -  Allocation of allowance for possible loan losses

The following table presents an allocation of the allowance for possible loan
losses at each of the five year periods ended December 31, 1997 , and the six
month period ended June 30, 1998 ( expressed in thousands).  The allocation
presented below is based on the historical average of net charge offs per
category combined with the change in loan growth and management's review of
the loan portfolio.

<TABLE>
<CAPTION>
                       June 30,                                             December 31,
                    -------------     --------------------------------------------------------------------------------------------
                        1998                1997               1996             1995              1994               1993
                    -------------        -----------        ---------        ----------        ----------        -----------
                          Percent             Percent            Percent          Percent           Percent            Percent
                          of loans            of loans           of loans         of loans          of loans           of loans
                          in each             in each            in each          in each           in each            in each
                          category            category           category         category          category           category
                          to total            to total           to total         to total          to total           to total
                  Amount  loans       Amount  loans      Amount  loans    Amount  loans     Amount  loans      Amount  loans
                 -------  ------      ------  ------     ------  -----    ------  ------    ------  ------     ------  ------
<S>              <C>      <C>      <C>       <C>       <C>       <C>      <C>      <C>        <C>     <C>       <C>     <C>
Real estate -           
  residential    $  193    33.2%   $  202     34.6%    $  192     36.5%   $  215    39.9%     $216     43.1%    $216     43.1%
Commercial          490    39.0       622     38.0        619     39.1       618    36.5       420     34.7      382     35.9
Installment         335    24.0       343     23.6        298     21.6       265    20.0       260     19.3      248     17.6
Others               20     3.8        20      3.8         20      2.8        20     3.6        20      2.9       20      3.4
Unallocated          31      --        31       --         31       --        31      --        31       --       30        -
                  ------  -----     ------   -----       ----    -----      ----   -----      ----   ------     ----   ------
Total            $1,069   100.0%   $1,218    100.0%    $1,160    100.0%   $1,149   100.0%     $947    100.0%    $896    100.0%
                  ======  =====     ======   =====      ====     =====     =====   =====      ====    ======    ====    ======
</TABLE>
20

                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------

Deposits
--------

     Total deposits were $140,650,925 at June 30, 1998 as compared to
$137,044,813 at December 31, 1997, an increase of 2.6%.  Deposit growth
increased primarily in savings and time deposits.  Savings and time deposits
grew primarily as a result of consumers selecting higher yielding products and
the special promotions of time deposits offered by the subsidiary banks.


Table Eleven   
Deposits

The following table presents other time deposits of $100,000 or more issued by
domestic offices by time remaining until maturity of 3 months or less; over 3
through 6 months; over 6 through 12 months; and over 12 months.  (Unaudited) 
<TABLE>
<CAPTION>
                                           June 30, 1998 
                        Maturities of Time Deposits in Excess of $100,000
                        --------------------------------------------------
                          In Three            Over Three       Over Six             Over
                          Months              And Less Than    And Less Than        Twelve
                          Or Less             Six Months       Twelve Months        Months       TOTAL
                          -------             ------------     -------------        ------       -----
                                                 (Expressed in Thousands)
<S>                       <C>                <C>               <C>                 <C>          <C>
Time Certificates
  of Deposit              $ 1,455            $      1,500     $  3,124            $  4,231     $ 10,310

</TABLE>
<TABLE>
<CAPTION>
                                        December 31, 1997
                        Maturities of Time Deposits in Excess of $100,000
                        --------------------------------------------------
                          In Three            Over Three       Over Six             Over
                          Months              And Less Than    And Less Than        Twelve
                          Or Less             Six Months       Twelve Months        Months       TOTAL
                          -------             ------------     -------------        ------       -----
                                              (Expressed   in Thousands)
                                                                                  
<S>                       <C>                 <C>              <C>                 <C>          <C>
Time Certificates
  of Deposit              $  4,297            $      1,128    $  1,668            $  4,854     $ 11,947

</TABLE>

<PAGE>
Repurchase Agreements
----------------------          

          Repurchase agreements represent short-term borrowings, usually
overnight to 30 days.  Repurchase agreements were $5,143,871 at June 30, 1998,
an increase of $1,068,875, as compared to December 31, 1997.  The increase of
repurchase agreements was primarily due to the increase in the balances
maintained by existing commercial customers.


------------------------------------------------------------------------------
<PAGE>
21
                       First West Virginia Bancorp, Inc.
      Management's Discussion and Analysis of the Financial Condition and
                     Results of Holding Company Operations
------------------------------------------------------------------------------

Capital Resources
-----------------
     A strong capital base is vital to continued profitability because it
promotes depositor and investor confidence and provides a solid foundation for
future growth.  Stockholders' equity increased 4.7% during the first six
months of 1998 entirely from current earnings after quarterly dividends, and a
decrease of .1% resulting from the effect of the change in the net unrealized
gain (loss) on securities available for sale.  Stockholders' equity amounted
to 9.2% of total assets at June 30, 1998 as compared to 9.0% at December 31,
1997. 
     The Holding Company's primary source of funds for payment of dividends to
shareholders is from the dividends from its subsidiary banks.  Earnings from
subsidiary bank operations are expected to remain adequate to fund payment of
stockholders' dividends and internal growth.  In management's opinion, the
subsidiary banks have the capability to upstream sufficient dividends to meet
the cash requirements of the Holding Company. 
     The Holding Company is subject to regulatory risk-based capital
guidelines administered by the Federal Reserve Board.  These risk-based
capital guidelinesestablish minimum capital ratios of Total capital, Tier 1
Capital, and Leverage to assess the capital adequacy of bank holding
companies.

          The following chart shows the regulatory capital levels for the
company at June 30, 1998, June 30, 1997, and December 31, 1997:

                                              June 30,        Dec. 31
                                           --------------      -------
Ratio                       Minimum          1998    1997        1997
----------------------      --------       -------  -----       -----
                                                     
  Leverage Ratio              3%            8.8      8.6         8.7 
  Risk Based Capital                                                 
    Tier 1 (core)             4%           14.0     14.6        14.2 
    Tier 2 (total)            8%           15.0     15.8        15.4  

Liquidity
---------

          Liquidity management ensures that funds are available to meet loan
commitments, deposit withdrawals, and operating expenses.  Funds are provided
by loan repayments, investment securities maturities, or deposits, and can be
raised by liquidating assets or through additional borrowings.  The
corporation had investment securities with an estimated market value of
$38,481,030 classified as available for sale at June 30, 1998.  These
securities are available for sale at any time based upon management's
assessment in order to provide necessary liquidity should the need arise.  In
addition, the Holding Company's subsidiary banks, Progressive Bank, N.A., and
Progressive Bank, N.A.- Buckhannon, are members of the Federal Home Loan Bank
of Pittsburgh (FHLB).  Membership in the FHLB provides an additional source of
short-term and long-term funding, in the form of collateralized advances.  At
June 30, 1998, Progressive Bank, N.A. and Progressive Bank, N.A.- Buckhannon,
had an available line of approximately $2,570,000 and $694,000, respectively,
without purchasing any additional capital stock from the FHLB.  As of 
June 30, 1998 there were no borrowings outstanding pursuant to these 
agreements.
     At June 30, 1998 the Holding Company had outstanding loan commitments and
unused lines of credit totaling $7,491,000.  As of June 30, 1998, management
placed a high probability for required funding within one year of
approximately $5,114,000.  Approximately $2,229,000 is principally unused home
equity and credit card lines on which management places a low probability for
required funding.
<PAGE>
22
 
                       FIRST WEST VIRGINIA BANCORP, INC.
                                    PART II
                               OTHER INFORMATION


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

  The nature of the business of the Holding Company's subsidiaries generates a
certain amount of litigation involving matters arising in the ordinary course
of business.  However, there are no proceedings now pending or threatened
before any court or administrative agency to which the Holding Company or its
subsidiaries are a party or to which their property is subject.



Item 2            Changes in Securities
---------------------------------------

  Inapplicable


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

  Inapplicable


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


  a.  Inapplicable

  b.  Inapplicable

  c.  Inapplicable


  d.  Inapplicable

 

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


  Inapplicable

<PAGE>
23
 
Item 6            Exhibits and Reports on Form 8-K
--------------------------------------------------



(a)      Financial
         ----------

  The consolidated financial statements of First West Virginia Bancorp, Inc.
and subsidiaries, for the six month period ended June 30, 1998, are
incorporated by reference in Part I:
                ------ 



(b)      Reports on Form 8-K
         -------------------

  No reports on Form 8-K have been filed during the quarter ended June 30,
1998.



(c)      Exhibits
         --------
 
  The exhibits listed in the Exhibit Index on page 25 of this FORM 10-Q are
incorporated by reference and/or filed herewith.

<PAGE>
24
 
SIGNATURES

  Pursuant to the requirements of Section 13 or 15(d) 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.

             First West Virginia Bancorp, Inc
             --------------------------------
                    (Registrant)

         By:  /s/ Ronald L. Solomon
              ---------------------------------------------------------------
                 Ronald L. Solomon
                 President and Chief Executive Officer/Director



         By:  /s/ Francie P. Reppy
              ---------------------------------------------------------------
                 Francie P. Reppy
                 Controller



Dated: July 28, 1998
<PAGE>
25
 
EXHIBIT INDEX

   The following exhibits are filed herewith and/or are incorporated herein by
reference.


Exhibit
Number    Description
-------   -----------


10.1      Employment Contract dated January 1, 1998 between First West
Virginia Bancorp, Inc. and  Ronald L. Solomon.  Incorporated herein by
reference.

10.2      Employment Contract dated January 1, 1998 between First West
Virginia Bancorp, Inc. and  Charles K. Graham.  Incorporated herein by
reference.

10.3      Lease dated July 20, 1993 between Progressive Bank, N.A., formerly 
known as "First West Virginia Bank, N.A.", and Angela I. Stauver. 
Incorporated herein by reference.

10.4      Lease dated March 26, 1992 between First West Virginia Bancorp, Inc. 
and the estate of Thomas L. Stockert, Jr., and the Tom Stockert Corporation. 
Incorporated herein by reference.

10.6      Banking Services License Agreement dated October 26, 1994 between 
Progressive Bank, N.A., formerly known as "First West Virginia Bank, N.A.",
and The Kroger Co.  Incorporated herein by reference.

10.7      Lease dated November 14, 1995 between Progressive Bank, N.A. 
Buckhannon and First West Virginia Bancorp, Inc and O. V. Smith & Sons of Big
Chimney, Inc.  Incorporated herein by reference.

11.1      Statement regarding computation of per share earnings.  Filed
herewith and incorporated herein by reference.

13.3      Summarized Quarterly Financial Information.  Filed herewith and
incorporated herein by reference.

15        Letter re unaudited interim financial information.  Incorporated 
herein by reference. See Part 1, Notes to Consolidated Financial Statements

27        Financial Data Schedule.  Filed herewith and incorporated herein by
reference.