U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

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

                                  FORM 10-QSB


          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 1997

         [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                For the transition period from ______ to _______


                         Commission File Number 0-26510


                           NCF FINANCIAL CORPORATION
             (Exact name of Registrant as specified in its Charter)


                Delaware                                61-1285330

       -------------------------------     -------------------------------
      (State or other jurisdiction of    (IRS Employer Identification Number)
       incorporation or organization)


     106A West John Rowan Boulevard, Bardstown, Kentucky       40004
    (Address of principal executive offices)               (Zip Code)

       Registrant's telephone number, including area code: (502) 348-9278


    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 reports), and (2) has been subject
               to such filing requirements for the past 90 days.

                                   X Yes    No
                                  ---    ---

                               Class      Outstanding

     As of December 31,  1997,  there were  792,609  shares of the  Registrant's
  common stock, par value $0.10 per share, outstanding. The Registrant has no
                  other classes of common equity outstanding.




<PAGE>
                         NCF FINANCIAL CORPORATION
                              AND SUBSIDIARY

                            Bardstown, Kentucky

                                  Index


PART I.

FINANCIAL INFORMATION                                              Page(s)

Item 1.
Financial Statements

Consolidated Balance Sheets - (Unaudited) as of December 31, 1997
   and June 30, 1997...................................................3

Consolidated Statements of Income - (Unaudited) for the three
   and six month periods ended December 31, 1997 and 1996..............4

Consolidated Statements of Stockholders' Equity (Unaudited) ...........5

Consolidated Statements of Cash Flows - (Unaudited) for the
   six months ended December 31, 1997 and 1996 ......................6-7

Notes to Consolidated Financial Statements (Unaudited) ..............8-9

Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations .........................................10-11

PART II.

OTHER INFORMATION

Item 1.  Legal Proceedings ...........................................12

Item 2.  Changes in Securities .......................................12

Item 3.  Defaults Upon Senior Securities .............................12

Item 4.  Submission of Matters to a Vote of Security Holders .........12

Item 5.  Other Information ...........................................12

Item 6.  Exhibits and Reports on Form 8-K ............................12

Signatures ...........................................................13

<PAGE>

<TABLE>
<CAPTION>

                              NCF FINANCIAL CORPORATION AND SUBSIDIARY

                                     Consolidated Balance Sheets
                                             (Unaudited)
                                            (in thousands)


                                                                             December 31,    June 30,
                                                                                     1997        1997
                                                                                 --------    --------
<S>                                                                              <C>         <C>
Assets
Cash and due from banks ......................................................   $    450    $    200
Interest-earning deposits ....................................................      5,415       4,995
Loans receivable, net ........................................................     28,010      27,046
Mortgage-backed securities
   (market value - $130 and $153, respectively) ..............................        111         132
Real estate owned ............................................................        287         725
Premises and equipment, net ..................................................        583         519
Federal Home Loan Bank stock .................................................        458         442
Interest receivable ..........................................................        225         245
Deferred tax asset ...........................................................         40          58
Other ........................................................................         48          41
                                                                                 --------    --------
Total assets .................................................................   $ 35,627    $ 34,403
                                                                                 ========    ========

Liabilities and Stockholders' Equity
Deposits .....................................................................   $ 22,984    $ 21,970
Accrued expenses and other liabilities .......................................        346         380
Income taxes payable .........................................................         17           3
                                                                                 --------    --------
Total liabilities ............................................................     23,347      22,353

Preferred stock ($.01 par value, 100,000 shares
authorized; none issued and outstanding) .....................................       --          --
Common stock ($.10 par value, 1,400,000 shares
authorized; 792,609 shares issued and outstanding) ...........................         79          79
Additional paid-in capital ...................................................      7,595       7,581
Retained earnings, substantially restricted ..................................      5,181       5,018
Less unearned compensation:
   Employee stock ownership plan .............................................       (388)       (413)
   Unearned stock compensation plan ..........................................       (187)       (215)
                                                                                 --------    --------
Total stockholders' equity ...................................................     12,280      12,050

                                                                                 --------    --------
Total liabilities and stockholders' equity ...................................   $ 35,627    $ 34,403
                                                                                 ========    ========

</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>

<TABLE>
<CAPTION>

                                  NCF FINANCIAL CORPORATION AND SUBSIDIARY

                                     Consolidated Statements of Income
                                                (Unaudited)
                                              (in thousands)

                                                                    Three Months Ended  Six Months Ended
                                                                       December 31,       December 31,
                                                                      ------   ------   ------   ------
                                                                        1997     1996     1997     1996
                                                                      ------   ------   ------   ------
Interest income:
<S>                                                                   <C>      <C>      <C>      <C>
Loans .............................................................   $  612   $  571   $1,250   $1,145
Mortgage-backed securities ........................................        3        4        7        8
Interest-earning deposits .........................................       77       78      155      152
                                                                      ------   ------   ------   ------

Total interest income .............................................      692      653    1,412    1,305

Interest expense:
Deposits ..........................................................      272      264      535      533
                                                                      ------   ------   ------   ------

Total interest expense ............................................      272      264      535      533
                                                                      ------   ------   ------   ------

Net interest income ...............................................      420      389      877      772

Provision for loan losses .........................................        4        4        8        8
                                                                      ------   ------   ------   ------

Net interest income after provision
for loan losses ...................................................      416      385      869      764

Non-interest income:
Loan fees and service charges .....................................       14        6       20       11

Non-interest expenses:
Compensation and employee benefits ................................      141      111      278      236
Net occupancy expense .............................................       11        7       26       14
Deposit insurance premiums ........................................        5       14       10      181
Data processing ...................................................        9        8       23       19
State franchise and other taxes ...................................       14       14       25       22
Professional fees .................................................       39       17       54       35
Other .............................................................       23       22       53       46
                                                                      ------   ------   ------   ------

Total non-interest expenses .......................................      242      193      469      553
                                                                      ------   ------   ------   ------

Income before income taxes ........................................      188      198      420      222

Income tax expense ................................................       74       82      144       73

Net income ........................................................   $  114   $  116   $  276   $  149
                                                                      ======   ======   ======   ======

Basic earnings per share ..........................................   $ 0.15   $ 0.15   $ 0.37   $ 0.20
                                                                      ======   ======   ======   ======

Dilutive earnings per share .......................................   $ 0.15   $ 0.15   $ 0.37   $ 0.20
                                                                      ======   ======   ======   ======

Cash dividend per share ...........................................   $ 0.15   $ 0.15   $ 0.15   $ 0.15
                                                                      ======   ======   ======   ======

</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>

<TABLE>
<CAPTION>

                    NCF FINANCIAL CORPORATION AND SUBSIDIARY

                 Consolidated Statements of Stockholders' Equity
                                   (Unaudited)
                                 (In Thousands)


                                                                                      Unearned
                                                                                      Employee          Unearned
                                                  Additional                           Stock             Stock
                                 Common          Paid-in          Retained          Ownership        Compensation
                                 Stock           Capital          Earnings            Plan              Plan               Total
                               ------------   ---------------   --------------   ---------------   ----------------   --------------
<S>                            <C>            <C>               <C>              <C>               <C>                <C>
BALANCE, June 30, 1996         $        77    $        7,270    $       4,918    $         (462)   $             -    $      11,803
                               ------------   ---------------   --------------   ---------------   ----------------   --------------

Net income                               -                 -              328                 -                  -              328

Issuance of shares for stock
compensation plan                        2               298                -                 -               (300)               -

Compensation expense under
stock compensation plan                  -                (7)               -                 -                 85               78

Fair value of shares committed
to be released from ESOP plan            -                20                -                50                  -               70

Cash dividends paid                      -                 -             (229)                -                  -             (229)
                               ------------   ---------------   --------------   ---------------   ----------------   --------------

BALANCE, June 30, 1997         $        79    $        7,581    $       5,017    $         (412)   $          (215)   $      12,050
                               ============   ===============   ==============   ===============   ================   ==============

Net income                               -                 -              276                 -                  -              276

Issuance of shares for stock
compensation plan                        -                 -                -                 -                  -                -

Compensation expense under
stock compensation plan                  -                 2                -                 -                 28               30

Fair value of shares committed
to be released from ESOP plan            -                12                -                25                  -               37

Cash dividends paid                      -                 -             (113)                -                  -             (113)
                               ------------   ---------------   --------------   ---------------   ----------------   --------------

BALANCE, December 31, 1997     $        79    $        7,595    $       5,180    $         (387)   $          (187)   $      12,280
                               ============   ===============   ==============   ===============   ================   ==============
</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


<PAGE>

<TABLE>
<CAPTION>

                               NCF FINANCIAL CORPORATION AND SUBSIDIARY

                                Consolidated Statements of Cash Flows
                                             (Unaudited)
                                            (in thousands)


                                                                               Six Months Ended
                                                                                 December 31,
                                                                        -------------------------------
                                                                                  1997            1996
                                                                        --------------- ---------------
Operating Activities:
<S>                                                                          <C>             <C>  
Net income                                                                   $     276       $     149
Adjustments to reconcile net income to
   net cash provided by operating activities:
Depreciation                                                                        14               7
Provision for loan losses                                                            8               8
Deferred income taxes (benefit)                                                     18             (27)
FHLB dividends received in stock                                                   (16)            (15)
Amortization of deferred loan origination fees, net                                 (7)              -
Accretion of discounts on mortgage-backed securities                                 -               -
Increase (decrease) in allowance for uncollectible interest                        (56)             55
Decrease (increase) in interest receivable                                          76            (134)
Decrease (increase) in other assets                                                 (7)            (21)
Increase (decrease) in accrued expenses and other liabilities                      (34)            (49)
Increase (decrease) in current income taxes payable                                 13            (143)
ESOP and stock compensation plan expense                                            67              33
                                                                        --------------- ---------------

Net Cash Provided By (Used In) Operating Activities                                352            (137)

Investing Activities:
Principal payments on mortgage-backed securities                                    22               5
Net decrease (increase) in loans originated                                       (964)            972
Proceeds from sale of foreclosed assets                                            438               -
Acquisition of premises and equipment                                              (79)              -
                                                                        --------------- ---------------

Net Cash Provided By (Used In) Investing Activities                               (583)            977

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                               NCF FINANCIAL CORPORATION AND SUBSIDIARY

                          Consolidated Statements of Cash Flows (Continued)
                                             (Unaudited)
                                            (in thousands)


Financing Activities:
<S>                                                                     <C>             <C>
Net increase (decrease) in deposits                                              1,015            (378)
Proceeds from (Repayments of) FHLB advances                                          -               -
Stock conversion cost                                                                -               -
Common stock issued                                                                  -               -
ESOP loan                                                                            -               -
Dividends paid                                                                    (113)           (109)
                                                                        --------------- ---------------

Net Cash Provided By (Used In) Financing Activities                                902            (487)
                                                                        --------------- ---------------

Increase (Decrease) In Cash and Cash Equivalents                                   671             353

Cash and Cash Equivalents, beginning of period                                   5,195           5,163
                                                                        --------------- ---------------

Cash and Cash Equivalents, end of period                                         5,866           5,516
                                                                        =============== ===============

Supplemental Disclosures:
Noncash investing and financing activities:
   Cash paid during the period for:
        Interest                                                             $     602       $     613
                                                                        =============== ===============

        Income taxes                                                         $     113       $     242
                                                                        =============== ===============

</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>

                    NCF FINANCIAL CORPORATION
                         AND SUBSIDIARIES

             Notes to Consolidated Financial Statements
                          (Unaudited)


1.   NCF Financial Corporation

     NCF Financial  Corporation (the "Company") was incorporated  under the laws
     of the State of Delaware for the purpose of becoming the holding company of
     NCF Bank and Trust Co. ("the Bank"), formerly Nelson County Federal Savings
     Bank in  connection  with the  conversion  from a mutual  to stock  form of
     ownership.  The  Company  commenced  on August  24,  1995,  a  Subscription
     Offering of its shares in connection with the conversion of the Association
     (the  "Conversion").  At October 12, 1995,  the  Conversion  was complete.
     Effective  April 2, 1997, the Bank was approved as a commercial state bank
     and changed its name to NCF Bank and Trust Co. The financial statements of
     the Bank are presented on a consolidated basis with those of the Company.

     The consolidated  financial statements included herein are for the Company,
     the  Bank  and  the  Bank's  wholly  owned   subsidiary,   Nelson   Service
     Corporation.  The  impact  of  Nelson  Service  Corporation  (NSC)  on  the
     consolidated  financial  statements is insignificant.  NSC has no operating
     activity other than to own stock in the third-party service bureau, 
     Intrieve.

2.   Basis of Preparation

     The accompanying  unaudited consolidated financial statements were prepared
     in  accordance  with  instructions  for Form 10-QSB and  therefore,  do not
     include  all  disclosures  necessary  for a  complete  presentation  of the
     consolidated statements of financial condition,  consolidated statements of
     income,  consolidated  statements of stockholders' equity, and consolidated
     statements of cash flows in conformity with generally  accepted  accounting
     principles.   However,  all  adjustments  which  are,  in  the  opinion  of
     management,  necessary for the fair  presentation of the interim  financial
     statements  have been included.  The statements of income for the three and
     six month periods ended December 31, 1997 are not necessarily indicative of
     the results which may be expected for the entire year.


<PAGE>


3.   Earnings Per Share

     Basic  earnings per share amounts for the three and six month periods ended
     December  31,  1997 and 1996 are  based on the  average  number  of  shares
     outstanding throughout the period.  Dilutive earnings per share amounts for
     the three and six month periods ended  December 31, 1997 and 1996 are based
     on the average number of common shares  outstanding  and the average effect
     of  dilutive  securities  available  for  exercise  throughout  the period.
     Unallocated  ESOP  shares  are  not  considered  as  outstanding  for  this
     calculation.  The  following  table  details  the number of shares  used in
     computing both the basic and dilutive earnings per share:

<TABLE>
<CAPTION>
                                                     Three Months Ended               Six Months Ended
                                                        December 31,                    December 31,
                                                 ----------------------------    ----------------------------
                                                     1997           1996             1997           1996
                                                 -------------  -------------    -------------  -------------
<S>                                              <C>            <C>              <C>            <C>
Weighted average number
 of common shares used in basic EPS                   753,234        749,261          752,609        748,640

Effect of dilutive securities:
   Stock options                                        3,527            330            2,455            330
                                                 -------------  -------------    -------------  -------------

Weighted average number of
   common shares and dilutive
   potential common stock
   used in dilutive EPS                               756,761        749,591          755,064        748,970
                                                 =============  =============    =============  =============
</TABLE>

4.   New Accounting Standards

     Management has determined that no new accounting standards have been issued
     or will imminently be issued that will materially  affect the  presentation
     of the accompanying unaudited consolidated financial statements.

5.   Impact of New Legislation

     Management has  determined  that no new  legislation  has been passed or is
     pending  before  any  relevant  body  that  will   materially   affect  the
     presentation  of  the   accompanying   unaudited   consolidated   financial
     statements.


<PAGE>


Item 2.

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

General

The following discussion and analysis is intended to assist in understanding the
financial condition and the results of operations of the Company.  References to
the "Company" include NCF Financial  Corporation and/or NCF Bank & Trust Co., as
appropriate.

Comparison of Financial Condition at June 30, 1997 and December 31, 1997

Total  consolidated  assets of the Company at December  31,  1997  increased  by
approximately $1.2 million since June 30, 1997. Total  consolidated  assets were
approximately  $35.6 million and $34.4 million at December 31, 1997 and June 30,
1997, respectively.

The primary  change in the balance  sheet is  attributable  to  increases in net
loans  receivable  and  interest-earning  deposits  of  $963,000  and  $420,000,
respectively. Real estate owned decreased by $438,000.

There was an increase in deposits  of  approximately  $1.0million  or 4.62% from
$22.0 million at June 30, 1997 to $23.0 million at December 31, 1997. Management
attributes this growth to expanded customer account services designed to provide
future deposit growth.


Comparison  of Results of  Operations  for the Three and Six Month Periods Ended
December 31, 1997 and 1996

Net  Income.  Net income  decreased  $2,000  for the three  month  period  ended
December 31, 1997 when  compared  against the same period last year.  Net income
increased  $127,000 for the six months ended  December 31, 1997 when compared to
the same period for December 31, 1996. However,  this increase for the six month
period is primarily  attributed to the payment of the FDIC special assessment of
approximately  $101,000  (net of tax) in the 1996  period.  Without this special
assessment accrual, net income would have increased by approximately  $26,000 or
10.4% for the six month period as compared to last year.  Net income of $114,000
for the three months ended  December 31, 1997  resulted in earnings per share of
$0.17.  Net  income of  $276,020  for the six months  ended  December  31,  1997
resulted in earnings per share of $0.37.

Net Interest Income.  Net interest income increased $31,000 for the three months
ended December 31, 1997 when compared to the last calendar  quarter of 1996, and
$105,000 or 13.62% from  $773,000 for the six months ended  December 31, 1996 to
$877,000 for the six months ended  December 31,  1997.  The  improvement  in net
interest income primarily  reflects an increase in the interest rate spread from
2.91% for the six months  ended  December  31,  1996 to 3.57% for the six months
ended  December 31, 1997. The main factor  contributing  to this increase was an
increase  in the  average  yield on loans  between  the two  periods of 81 basis
points.  These  reasons are also  applicable  to the  increase  between the last
quarter of 1997 and the last quarter of 1996.

Interest Income.  Total interest income increased  $39,000 from the last quarter
of 1996 to the same period in 1996,  and $238,000  from  $1,305,000  for the six
months ended  December 31, 1996 to $1,412,000  for the six months ended December
31, 1997.  Interest on loans increased  $105,000 or 9.19%.  Most of the increase
was due to the average yield on the loan portfolio  increasing from 8.06% during
the six months  ended  December  31, 1996 to 8.87%  during the six months  ended
December 31, 1997.

Interest income from other sources did not change  materially from the three and
six months ended December 31, 1997 when compared to the same periods in 1996.

<PAGE>


Interest  Expense.  Interest  expense  increased $8,000 from the last quarter of
1996 to the same  quarter  in 1997,  attributable  entirely  to an  increase  in
average  balances  between  the two  periods.  There was an increase in interest
expense of only $2,000  between the two six month  periods  ending  December 31,
1997 and 1996,  from  $533,000  for the six months  ended  December  31, 1996 to
$535,000  for  the six  months  ended  December  31,  1997.  This  increase  was
attributable  entirely to a rise in the average  balance on deposits of $170,000
from  $22,385,000  for the six months ended December 31, 1996 to $22,555,000 for
the same period in 1997.  The cost on deposits  actually fell from one period to
the next from  4.76% in 1996 to 4.74% in 1997.  There were no  borrowings  other
than deposits in either period.

Provision  for Loan  Losses.  The  provision  for loan losses for the six months
ended December 31, 1997 was $8,000, and was also $8,000 for the six months ended
December 31, 1997.  The  provision  for loan losses was $4,000 for both the last
quarter  of 1997 and the last  quarter  of 1996.  Historically,  management  has
emphasized  the Company's  loss  experience  over other factors in  establishing
provisions for loan losses.  However,  management also reviews the allowance for
loan losses in relation to the Company's  composition  of its loan portfolio and
observations of the general economic climate and loan loss expectations.

Non-Interest Income. Fee income and other service charges of $19,000 for the six
months ended December 31, 1997  increased  $8,000 or 72.58% from the same period
in 1996.  Fee income also  increased  from the last three  months of 1996 to the
same period in 1997,  from $6,000 to $14,000.  These  increases  were  primarily
attributable  to the inclusion of previously  deferred loan fees into income due
to a recalculation of the amortization on the interest level yield method.

Non-Interest  Expense.  Non-interest  expense decreased by $84,000 from $553,000
for the six months ended  December 31, 1996 to $469,410 for the six months ended
December 31, 1997.  This decrease is the direct  result of the special  one-time
FDIC  assessment  accrual  of  approximately   $153,000  ($101,000  after  tax).
Increases in  compensation  and employee  benefits,  professional  fees, and net
occupancy expense of $42,000, $19,000, and $12,000, respectively, were the major
increases  in  non-interest  expense  between the two  periods.  The increase in
compensation  and employee  benefits was attributable to expenses related to the
Management  Stock Bonus Plan and Trust  Agreement.  Professional  fees increased
primarily  due to  expenses  incurred  for the  due  diligence  relating  to the
analysis of the proposed merger with Community Bank Shares of Indiana,  Inc. Net
occupancy expense increased due to relocation into a new corporate  headquarters
and bank  facility.  The Company owns the  building,  which results in increased
depreciation  expenses, and leases the land, which results in lease expense. The
previous corporate  headquarters and bank facility (including the land) is still
owned by the Company.  Other  non-interest  expense  items  remained  relatively
stable with minor absolute dollar changes.

Non-interest  expense increased $49,000 from $193,000 for the three months ended
December 31, 1996 to $242,000 for the three months ended December 31, 1997. This
increase  was  attributable  to the  reasons  described  above  relating  to the
Management Stock Bonus Plan and Trust Agreement,  proposed merger with Community
Bank  Shares  of  Indiana,  Inc.,  and  the  relocation  into  a  new  corporate
headquarters.

Income Taxes. The effective tax rate for the six months ending December 31, 1997
and 1996 was approximately 34%. Since there are no state income taxes imposed on
the Bank, the effective tax rate remained at approximately the federal statutory
percentage.

Liquidity  and Capital  Resources.  The Company's  primary  sources of funds are
deposits  and  proceeds  from  principal  and  interest  payments  on loans  and
investment securities.  While maturities and scheduled amortization of loans and
investment  securities  are a  predictable  source of funds,  deposit  flows and
mortgage prepayments are greatly influenced by general interest rates,  economic
conditions and competition.  The Company's  primary  investing  activity is loan
originations.  The  Company  maintains  liquidity  levels  adequate to fund loan
commitments,  investment opportunities,  deposit withdrawals and other financial
commitments.  Management has no knowledge of any trends, events or uncertainties
that  will  have or are  reasonably  likely  to  have  material  effects  on the
liquidity,  capital resources or operations of the Company. Further,  management
is not aware of any current recommendations by the regulatory authorities which,
if implemented, would have such an effect.



<PAGE>


Part II
                                OTHER INFORMATION



Item 1.   Legal Proceedings


          From time to time, the Company and any  subsidiaries may be a party to
          various  legal  proceedings  incident  to its or  their  business.  At
          December  31,  1997,  there  were no legal  proceedings  to which  the
          Company  or any  subsidiary  was a party,  or to which of any of their
          property was subject, which were expected by management to result in a
          material loss.


Item 2.   Changes in Securities

          None


Item 3.   Defaults Upon Senior Securities

          None


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

          None


Item 5.   Other Information

          None


Item 6.   Exhibits and Reports on Form 8-K

         (a)    Exhibits:  Exhibit 27 (financial data schedule)



<PAGE>


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned there unto duly authorized.


                                              NCF FINANCIAL CORPORATION


Date:   February 13, 1997             By /s/ Dan R. Biggs
       ------------------------              ----------------------------
                                             Dan R. Biggs
                                            (Vice President and Principal
                                             Financial Officer and duly
                                             authorized representative)