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

                                     OR

[ ]   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. 0-26242

                      FORT THOMAS FINANCIAL CORPORATION
           ------------------------------------------------------
           (Exact name of registrant as specified in its charter)

                Ohio                                 61-1278396
   -------------------------------             ----------------------
   (State or other jurisdiction of                (I.R.S. Employer
   incorporation or organization)              Identification Number)


     25 North Fort Thomas Avenue
        Fort Thomas, Kentucky                           41075
----------------------------------------             ----------
(Address of principal executive officer)             (Zip Code)

                               (606) 441-3302
            ----------------------------------------------------
            (Registrant's telephone number, including area code)


      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.
Yes   X   No      
    -----    -----

      Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the last practicable date.  As of August 7, 
1998, there were issued and outstanding 1,474,321 shares of the Registrant's 
Common Stock, par value  $.01 per share.


              FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY

                              TABLE OF CONTENTS

Part I.    Financial Information                                          Page
-------    ---------------------                                          ----

Item 1.  Consolidated Financial Statements

           Consolidated Statement of Financial Condition
           (As of September 30, 1997 and June 30, 1998
           (unaudited))                                                     1

           Consolidated Statements of Income for the three months and
           nine months ended June 30, 1998 (unaudited) and June 30, 1997 
           (unaudited)                                                      2

           Consolidated Statements of Cash Flow for the nine months 
           ended June 30, 1998 (unaudited) and June 30, 1997 (unaudited)    3

           Notes to the Unaudited Consolidated Financial Statements         4

Item 2.  Management's Discussion and Analysis of Financial Condition
          And Results of Operations                                         5

Item 3.  Quantitative and Qualitative Disclosures About Market Risk        11


Part II. Other Information
-------- -----------------

Item 1.  Legal Proceedings                                                 12
Item 2.  Changes in Securities and Use of Proceeds                         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


              FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
               CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                                     June 30,     Sept. 30
                                                                       1998         1997
                                                                     --------     --------
                                                                    (Dollars In Thousands)

<S>                                                                  <C>          <C>
Assets
Cash and Due from Banks                                              $  1,541     $ 2,186
Investment Securities Held to Maturity - at Amortized Cost              3,860       2,990
Mortgage-Backed Securities - Available for Sale - at Market Value           -         798
Loans Receivable, Net                                                  92,248      88,452
Office Properties and Equipment - at Depreciated Cost                     535         570
Federal Home Loan Bank Stock (FHLB) - at Cost                             855         785
Cash Surrender Value of Life Insurance                                  1,148       1,114
Accrued Interest Receivable                                               823         771
Prepaid and Other Assets                                                  102          93
Federal Income Tax Refund Receivable                                        -          29
Deferred Federal Income Tax Asset                                         240          86
                                                                     --------------------
      Total Assets                                                   $101,352     $97,874
                                                                     ====================

Liabilities and Stockholders' Equity
Deposits                                                             $ 75,200     $71,858
Borrowed Funds                                                          8,582       8,846
Advances from Borrowers for Taxes and Insurance                           211         229
Deferred Compensation                                                     542         504
Accrued Interest Payable                                                   63          59
Accrued Federal Income Tax                                                  4           -
Other Liabilities                                                         458         592
                                                                     --------------------
      Total Liabilities                                                85,060      82,088
                                                                     --------------------

Stockholders' Equity
  Common Stock, $.01 Par value; 4,000,000 Shares Authorized;
   1,573,775 Shares Issued and 1,474,321 and 1,495,086 Shares
   Outstanding, Respectively                                               16          16
  Additional Paid-In Capital                                            9,475       9,436
  Unearned ESOP Shares                                                   (662)       (744)
  MRP Trust                                                              (581)       (672)
  Retained Earnings, Substantially Restricted                           9,424       8,852
  Treasury Stock (99,454 and 78,689 Shares at Cost)                    (1,380)     (1,103)
  Unrealized Gain on Investment Securities Available for Sale               -           1
                                                                     --------------------
      Total Stockholders' Equity                                       16,292      15,786
                                                                     --------------------
      Total Liabilities and Stockholders' Equity                     $101,352     $97,874
                                                                     ====================
</TABLE>


              FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                  Three Months Ended    Nine Months Ended
                                                      June 30,              June 30,
                                                  ------------------    -----------------
                                                    1998       1997       1998       1997
                                                    ----       ----       ----       ----
                                                          (Dollars in Thousands)

<S>                                               <C>        <C>        <C>        <C>
Interest Income
  Interest on Loans                               $2,063     $1,939     $6,047     $5,530
  Interest on Investment Securities                   47         82        142        211
  Interest on Mortgage-Backed Securities               0         15          4         37
  Other Interest and Dividends                        64         38        177        128
                                                  ---------------------------------------
      Total Interest Income                        2,174      2,074      6,370      5,906
                                                  ---------------------------------------

Interest Expense
  Deposits                                           991        928      2,936      2,655
  Borrowed Funds                                     114        143        409        391
                                                  ---------------------------------------
      Total Interest Expense                       1,105      1,071      3,345      3,046
                                                  ---------------------------------------

Net Interest Income                                1,069      1,003      3,025      2,860
Provision for Loan Losses                            157         12        181        125
                                                  ---------------------------------------

  Net Interest Income After Provision for Loan
   Losses                                            912        991      2,844      2,735
                                                  ---------------------------------------

Other Income                                          88         73        225        166
                                                  ---------------------------------------
Non-Interest Expenses
  Salaries and Employee Benefits                     295        280        880        846
  Franchise and Other Taxes                           44         25        116         85
  Federal Insurance Premium                           11         11         33         60
  Expenses of Premises and Fixed Assets               41         46        125        132
  Data Processing and Related Contract Services       35         29        114        101
  Other Operating Expense                            121        168        477        462
                                                  ---------------------------------------
      Total Non-Interest Expenses                    547        559      1,745      1,686
                                                  ---------------------------------------

Income Before Income Tax                             453        505      1,321      1,215
Federal Income Tax Expense                           158        174        471        401
                                                  ---------------------------------------
      Net Income                                  $  295     $  331     $  850     $  814
                                                  =======================================
Earnings Per Share
  Basic                                           $ 0.21     $ 0.23     $ 0.61     $ 0.56
                                                  =======================================
  Fully Diluted                                   $ 0.20     $ 0.22     $ 0.57     $ 0.53
                                                  =======================================
</TABLE>


              FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                         Nine Months Ended
                                                              June 30,
                                                       ----------------------
                                                          1998        1997
                                                          ----        ----
                                                       (Dollars in Thousands)

<S>                                                     <C>          <C>
Cash Flows from Operating Activities
  Net Income                                            $    850     $   814
  Reconciliation of Net Income with Cash Flows from
   Operations:
  Provision for Loan Losses                                  181         125
  Depreciation                                                49          59
  Deferred Income Taxes                                     (153)         91
  Amortization                                              (208)       (217)
  FHLB Stock Dividends                                       (44)        (37)
  ESOP and Stock Compensation                                116         130
  Changes In:
    Accrued Interest Receivable                              (53)        (70)
    Prepaid and Other Assets                                  (9)         25
    Cash Surrender Value of Life Insurance                   (34)        (35)
    Deferred Compensation                                     38          94
    Accrued Interest Payable                                   4           4
    Accrued Income Tax                                        33          67
    Other Liabilities                                       (135)       (440)
                                                        --------------------

      Net Cash Provided by Operating Activities              635         610
                                                        --------------------

Cash Flows from Investing Activities
  Purchase of Investment Securities                       (2,861)     (1,987)
  Purchase of FHLB Stock                                     (26)        (34)
  Maturity of Investment Securities                        2,790       1,500
  Loan Originations and Repayments, Net                   (3,937)     (8,816)
  Principal Received on Mortgage-Backed Security              (5)         19
  REO Expenses                                               (19)          0
  Proceeds from Sale of REO                                  203          28
  Purchase of Office Properties and Equipment                (14)         (4)
                                                        --------------------

      Net Cash Used in Investing Activities               (3,869)     (9,294)
                                                        --------------------

Cash Flows from Financing Activities
  Net Increase in Deposits                                 3,342       6,646
  Dividends Paid                                            (276)       (284)
  ESOP Shares Released                                        82          78
  Common Stock Shares Purchased for Treasury                (277)     (1,102)
  Advance from Borrowers for Taxes and Insurance             (18)         27
  Repayments of Borrowings                               (10,964)     (1,155)
  Proceeds of Borrowings                                  10,700       4,050
                                                        --------------------

      Net Cash Provided by Financing Activities            2,589       8,260
                                                        --------------------

  Changes in Cash and Cash Equivalents                      (645)       (424)
  Cash and Cash Equivalents, Beginning of Period           2,186       1,785
                                                        --------------------
  Cash and Cash Equivalents, End of Period              $  1,541     $ 1,361
                                                        ====================
</TABLE>


                      FORT THOMAS FINANCIAL CORPORATION
                               AND SUBSIDIARY
            Notes to Unaudited Consolidated Financial Statements


Note 1 - Basis of Presentation
         ---------------------

Fort Thomas Financial Corporation (the "Corporation") was incorporated under 
Ohio law in March 1995 by Fort Thomas Federal Savings and Loan Association 
(the "Association") in connection with the conversion of the Association 
from a federally chartered mutual savings and loan association to a 
federally chartered stock savings bank, known as Fort Thomas Savings Bank, 
F.S.B. (the "Bank"), the issuance of the Bank's stock by the Corporation and 
the offer and sale of the Corporation's common stock by the corporation (the 
"Conversion").  Upon consummation of the Conversion on June 27, 1995, the 
Corporation became the unitary holding company for the Bank.

The accompanying unaudited consolidated financial statements of the 
Corporation have been prepared in accordance with instructions to Form 10-Q.  
Accordingly, they do not include all of the information and footnotes 
required by generally accepted accounting principles for complete financial 
statements.  However, such information reflects all adjustments (consisting 
solely of normal recurring adjustments) which are, in the opinion of 
management, necessary for a fair statement of results for the interim 
periods.

The results of operations for the three and nine months ended June 30, 1998 
are not necessarily indicative of the results to be expected for the year 
ending September 30, 1998.  The unaudited consolidated financial statements 
and notes thereto should be read in conjunction with the audited financial 
statements and notes thereto for the year ended September 30, 1997 contained 
in the Corporation's 1997 Annual Report.

Note 2 - Earnings Per Share
         ------------------

The average number of common shares used to calculate earnings per share 
were as follows:

<TABLE>
<CAPTION>
                     Three Months Ended June 30,    Nine Months Ended June 30,
                     ---------------------------    --------------------------
                         1998          1997            1998          1997
                         ----          ----            ----          ----

<S>                    <C>           <C>             <C>           <C>
Basic Weighted -
 Average Shares        1,405,511     1,415,586       1,404,667     1,448,968

Diluted Weighted -
 Average Shares        1,485,771     1,492,798       1,483,859     1,530,049
</TABLE>


Note 3 - Impact of Recent Accounting Standards
         -------------------------------------

In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive 
Income," which establishes standards for reporting and displaying 
comprehensive income and its components (revenues, expenses, gains and 
losses) in a full set of general-purpose financial statements.  SFAS No. 130 
requires that all items that are required to be recognized under accounting 
standards as components of comprehensive income be reported in a financial 
statement that is displayed with the same prominence as other financial 
statements and requires that an enterprise (a) classify items of other 
comprehensive income by their nature in a financial statement and (b) 
display the accumulated balance of other comprehensive income separately 
from retained earnings and additional paid-in capital in the equity section 
of the statement of financial position.  Under existing accounting 
standards, other comprehensive income shall be classified separately into 
foreign currency items, minimum pension liability adjustments and unrealized 
gains and losses on certain investments in debt and equity securities.  The 
provisions of SFAS No. 130 are effective for fiscal years beginning after 
December 15, 1997.  Management does not believe the adoption of SFAS No. 130 
will have a material impact on the disclosure requirements of the 
Corporation.


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


Financial Condition

At June 30, 1998, the Corporation's total assets amounted to $101.4 million 
as compared to $97.9 million at September 30, 1997.  The $3.5 million or 
3.6% increase was primarily due to an increase in loans receivable, net.  
Such increase was funded primarily by an increase in deposits.  
Stockholders' equity amounted to $16.3 million or 16.1% of total assets at 
June 30, 1998 compared to $15.8 million or 16.1% at September 30, 1997.  The 
increase in stockholders' equity was primarily due to continued profitable 
operations partially offset by cash dividends.

Asset Quality

Loans are placed on nonaccrual status when, in the judgment of management, 
the probability of collection of interest is deemed to be insufficient to 
warrant further accrual.  When a loan is placed on nonaccrual status, 
previously accrued but unpaid interest is deducted from interest income.  
The Bank does not accrue interest on real estate loans past due 90 days or 
more.  Loans may be reinstated to accrual status when payments are brought 
current and, in the opinion of management, collection of the remaining 
balance can be reasonably expected.

Delinquent Loans

The following table sets forth information concerning delinquent loans in 
dollar amounts and as a percentage of each category of the Bank's loan 
portfolio at June 30, 1998.  The amounts presented represent the total 
outstanding principal balances of the related loans, rather than the actual 
payment amounts that are past due.

<TABLE>
<CAPTION>
                                                           Percent of Corresponding
                              Loans Delinquent For             Loan Categories
                          ----------------------------    --------------------------
                          30-89     90 Days               30-89    90 Days
                           Days     And Over    Total     Days     And Over    Total
                          -----     --------    -----     -----    --------    -----
                             (Dollars in Thousands)

<S>                       <C>        <C>        <C>       <C>       <C>        <C>
One-to-four family
 residential              $2,701     $1,612     $4,313    3.56%     2.12%      5.68%
Multi-family and
 nonresidential               54        340        394    0.48%     3.00%      3.48%
Construction and land        229          -        229    4.64%        -       4.64%
Consumer                       -          8          8       -      0.63%      0.63%
                          ----------------------------
Total delinquent loans    $2,984     $1,960     $4,944
                          ============================
</TABLE>


The following table sets forth the amounts and categories of the Bank's non-
performing assets at the dates indicated.

<TABLE>
<CAPTION>
                                               June 30,          September 30,
                                           -----------------     -------------
                                            1998       1997          1997
                                            ----       ----          ----

<S>                                        <C>        <C>           <C>
Non-accruing loans:
  One-to-four family residential(1)        $1,612     $1,065        $1,266
  Multi-family and non-residential
   real estate                                340          -           360
  Construction and land                         -        276           309
  Consumer                                      -         53             -
Accruing consumer loans greater
 than 90 days delinquent:                       8          -             2
                                           -------------------------------
      Total non-performing loans            1,960      1,394         1,937
                                           -------------------------------
Real estate acquired through
 foreclosure                                    -         36             -
                                           -------------------------------
      Total non-performing assets          $1,960     $1,430        $1,937
                                           ===============================
      Total non-performing assets as a
       percentage of total loans             2.10%      1.60%         1.98%
                                           ===============================
      Total non-performing assets as a
       percentage of  total assets           1.93%      1.48%         1.98%
                                           ===============================

--------------------
<F1>   Includes second mortgage loans.
</TABLE>


The $2.0 million of nonaccruing loans at June 30, 1998 consisted of 37 loans 
with an average balance of approximately $54,000.  Interest that would have 
been earned on these loans, if they had been accounted for on an accruing 
basis during the quarter would have been approximately $40,000.  
Substantially, all of the loans are extended to separate borrowers.

Classified Assets

Federal regulations require that each insured savings association classify 
its assets on a regular basis.  In addition, in connection with examinations 
of insured institutions, federal examiners have authority to identify 
problem assets and, if appropriate, classify them.  There are three 
classifications for problem assets:  "substandard", "doubtful" and "loss".  
Substandard assets have one or more defined weaknesses and are characterized 
by the distinct possibility that the insured institution will sustain some 
loss if the deficiencies are not corrected.  Doubtful assets have the 
weaknesses of substandard assets with the additional characteristic that the 
weaknesses make collection or liquidation in full on the basis of currently 
existing facts, conditions and values questionable, and there is a high 
possibility of loss.  An asset classified loss is considered uncollectable 
and of such little value that continuance as an asset of the institution is 
not warranted.  At June 30, 1998, the Bank had $3.9 million of loans that 
were classified as substandard, $20,000 of loans classified as doubtful and 
$7,000 of loans classified as loss.  The difference between the $3.9 million 
of assets classified for regulatory purposes and the delinquent loans of 
$2.0 million was approximately $1.9 million.  This amount represents loans 
that were required to be classified for regulatory purposes due to certain 
quantitative factors regarding collateral, delinquency periods, and loan 
terms.

Allowance for Loan Losses

It is management's policy to maintain an allowance for estimated losses 
based on the perceived risk of loss in the loan portfolio.  In assessing 
risk, management considers historical loss experience, the volume and type 
of lending conducted by the Bank, industry standards, past due loans, 
general economic conditions and other factors related to the collectability 
of the loan portfolio.  Provisions for loan losses that are charged against 
income increase the allowance.

Although management uses the best information available to make 
determinations with respect to the provisions of loan losses, additional 
provisions for loan losses may be required to be established in the future 
should economic or other conditions change substantially.  In addition, the 
OTS and the FDIC, as an integral part of their examination process, 
periodically review the Bank's allowance for possible loan losses.  Such 
agencies may require the Bank to recognize additions to such allowance based 
on their judgments about information available to them at the time of their 
examination.

The following table summarizes the activity in the allowance for loan losses 
and other selected statistics for the periods presented.

<TABLE>
<CAPTION>
                                                      Nine Months Ended      Year Ended
                                                          June 30,          September 30,
                                                      -----------------     -------------
                                                       1998       1997          1997
                                                       ----       ----          ----
                                                            (Dollars in Thousands)

<S>                                                   <C>        <C>           <C>
Average Loans Receivable, Net                         $91,114    $82,653       $83,912
                                                      ================================
Allowance for Loan Losses
  Balance at Beginning of Period                      $   476    $   366       $   366
  Net (Charge-Offs) Recoveries                            (45)       (23)          (27)
  Provision for Loan Losses                               169        125           137
                                                      --------------------------------
  Balance at End of Period                            $   600    $   468       $   476
                                                      ================================
  Net Loans (Charged-Off) Recovered to Average 
   Loans                                                (0.05)%    (0.03)%       (0.03)%
                                                      ================================
Allowance for Loan Losses to Total Loans                 0.69 %     0.52 %        0.32 %
                                                      ================================
Allowance for Loan Losses to Total Non-Performing
 Loans                                                  30.61 %    33.57 %       19.20 %
                                                      ================================
Net Loans (Charged-Off) Recovered to Allowance for
 Loan Losses                                            (7.50)%    (4.91)%       (7.95)%
                                                      ================================
</TABLE>


The following table presents the allocation of the allowance for loan losses 
to the total amount of loans in each category listed at the dates indicated.

<TABLE>
<CAPTION>
                                                  June 30, 1998
                                           ---------------------------
                                                      Percent of Loans
                                                      In Each Category
                                           Amount     To Total Loans
                                           ------     ----------------
                                             (Dollars in Thousands)

<S>                                         <C>           <C>
One-to-Four Family Residential              $367           81.24%
Multi-Family Residential                     125           12.12%
Land and Construction                        100            5.28%
Consumer Loans                                 8            1.36%
                                            ---------------------
    Total                                   $600          100.00%
                                            =====================
</TABLE>


Results of Operations for the Three Months Ended June 30, 1998 and 1997

      General.  The Corporation reported net income of $295,000 during the 
three months ended June 30, 1998 compared to $332,000 during the three 
months ended June 30, 1997.  The decrease in net income during the three 
months ended June 30, 1998 compared to the same period in 1997 was due 
primarily to an increase in the allowance for loan losses of $145,000 which 
was partially offset by increases in net interest income and total other 
income and a decrease in total non-interest expenses.

      Interest Income.  Interest income increased $100,000 or 4.8% to $2.2 
million for the three months ended June 30, 1998 compared to the same period 
in 1997.  The increase during the 1998 period was primarily due to an 
increase in the average outstanding balance of the Corporation's loan 
portfolio.  Such increase was primarily due to increased loan demand.  
Yields on interest earning assets remained relatively constant.

      Interest Expense.  Interest expense increased $30,000 or 3.2% to $1.1 
million for the three months ended June 30, 1998, compared to the same 
period in 1997.  Such increase was primarily due to an increase in the 
average outstanding balance of the Corporation's time deposits.  Costs of 
funds remained relatively constant.

      Net Interest Income.  Net interest income amounted to $1.1 million for 
the three months ended June 30,  1998, an increase of $66,000 over the 
comparable period in 1997.  The interest rate spread amounted to 3.5% for 
both the three months ended June 30, 1998 and 1997 and the ratio of average 
interest-earning assets to average interest-bearing liabilities was 118.0% 
and 118.5% for the same respective periods.

      Provision for Losses on Loans.  The provision for losses on loans 
amounted to $157,000 and $12,000 for the three months ended June 30, 1998 
and 1997, respectively.  The increase in the provision for losses on loans 
was due to an increase in the level of classified loans.

      Other Income.  Other income increased $15,000 or 20% during the three 
months ended June 30, 1998, compared to the same period in 1997 due 
primarily to an increase in fees and charges relating to loans.

      Non-Interest Expenses.   Non-interest expenses for three months ended 
June 30, 1998 decreased $12,000 or 2.1% to $547,000 over the same period in 
1997.  This decrease was primarily due to a decrease in other operating 
expenses of $47,000 offset by increases in salaries and employee benefits, 
franchise and other taxes, and data processing expenses.  The decrease in 
other operating expenses was a result of lower expenses for legal, 
accounting and filing fees.  The increase in salaries and employee benefits 
was due to normal merit increases and the increases in franchise taxes and 
data processing expenses were a result of increased volume of the 
Association.

Results of Operations for the Nine Months Ended June 30, 1998 and 1997

      General.  The Corporation reported net income of $850,000 for the nine 
months ended June 30, 1998, an increase of $37,000 or 4.6% compared to 
$813,000 during the nine months ended June 30, 1997.  Such increase was 
primarily due to increases in net interest income and other income, 
partially offset by an increase in the provision for loan losses and an 
increase in non-interest expenses.

      Interest Income.  Interest income increased $461,000 or 7.8% to $6.4 
million for the nine months ended June 30, 1998 compared to the same period 
in fiscal 1997.  The increase during the fiscal 1998 period was due to an 
increase in the average outstanding balance of the Corporation's loan 
portfolio.  The increase in the average balance of the loan portfolio was 
due to continued loan demand and portfolio growth.  The average yield on the 
Corporation's interest-earning assets was 8.6% for the nine months ended 
June 30, 1998 compared to 8.7% for the same period in 1997.

      Interest Expense.  Interest expense increased $299,000 or 9.8% to $3.3 
million for the nine months ended June 30, 1998 compared to $3.0 million for 
the nine months ended June 30, 1997.  Such increase was primarily due to an 
increase in the average outstanding balance of time deposits.  The increase 
in the average balance of deposits reflects the increase in certificate of 
deposit accounts.  The average rate paid on the Corporation's interest-
bearing liabilities was 5.4% for both the nine months ended June 30, 1998 
and the same period in 1997.

      Provision for Losses on Loans.  The provision for losses on loans 
amounted to $181,000 and $125,000 for the nine months ended June 30, 1998 
and 1997, respectively.  The increase in the provision for losses on loans 
was due to an increase in the level of classified loans.

      Other Income.  Other income increased $59,000 or 35.5% to $225,000 
during the nine months ended June 30, 1998 compared to the nine months ended 
June 30, 1997 due to an increase in fees and charges relating to loans.

       Non-Interest Expenses.  Non-interest expenses increased $59,000 or 
3.5% to $1.7 million for the nine months ended June 30, 1998 compared to the 
same period in fiscal 1997.  Such increase was primarily due to increases in 
salaries and employee benefits and franchise and other taxes.  The increase 
in salaries and employee benefits was due to normal merit increases.  The 
increase in franchise and other taxes was a result of increased volume of 
the Association.

Liquidity and Capital Resources

The Bank's liquidity, represented by cash and cash equivalents, is a product 
of its operating, investing and financing activities.  The Bank's primary 
sources of funds are deposits, borrowings, amortization, prepayments and 
maturities of outstanding loans, sales of loans, maturities of investment 
securities and other short-term investments and funds provided from 
operations.  While scheduled loan amortization and maturing investment 
securities and short-term investments are relatively predictable sources of 
funds, deposit flows and loan prepayments are greatly influenced by general 
interest rates, economic conditions and competition.  The Bank manages the 
pricing of its deposits to maintain a steady deposit balance.  In addition, 
the Bank invests excess funds in overnight deposits and other short-term 
interest-earning assets that provide liquidity to meet lending requirements.  
The Bank has generally been able to generate enough cash through the retail 
deposit market, its traditional funding source, to offset the cash utilized 
in investing activities.  As an additional source of  funds, the Bank may 
borrow from the FHLB of Cincinnati and has access to the Federal Reserve 
discount window.  At June 30, 1998, the Bank had $8.6 million of outstanding 
advances from the FHLB of Cincinnati.

As of June 30, 1998, the Bank's regulatory capital was well in excess of all 
applicable regulatory requirements.  At June 30, 1998, the Bank's tangible, 
core and risk-based capital ratios amounted to 15.4%, 15.4% and 24.4%, 
respectively, compared to regulatory requirements of 1.5%, 3.0% and 8%, 
respectively.

      Year 2000.  The Corporation outsources its primary data processing 
functions.  A challenging problem exists as the millennium ("year 2000") 
approaches as many computer systems worldwide do not have the capability of 
recognizing the year 2000 or years thereafter.  To date, the Company has 
received confirmations from its primary vendors that plans have been 
developed by them to address and correct the issues associated with the year 
2000 problem.

Forward-Looking Statements

      This Form 10-Q contains certain forward-looking statements and 
information relating to the Corporation that is based on the beliefs of 
management as well as assumptions made by and information currently 
available to management.  In addition, in those and other portions of this 
document, the words "anticipate", "believe", "estimate", "except", "intend", 
"should" and similar expressions, or the negative thereof, as they relate to 
the Corporation or the Corporation's management, are intended to identify 
forward-looking statements.  Such statements reflect the current views of 
the Corporation with respect to future looking events and are subject to 
certain risks, uncertainties and assumptions.  Should one or more of these 
risks or uncertainties materialize or should underlying assumptions prove 
incorrect, actual results may vary materially from those described herein as 
anticipated, believed, estimated, expected or intended.  The Corporation 
does not intend to update these forward-looking statements.


                  QUANTITATIVE AND QUALITATIVE DISCLOSURES
                              ABOUT MARKET RISK


      For a discussion of the Corporation's asset and liability management 
policies as well as the potential impact of interest rate changes upon the 
market value of the Bank's portfolio equity, see "Management's Discussion 
and Analysis of Financial Condition and Results of Operations" in the 
Corporation's 1997 Annual Report to the Stockholders.  There has been no 
material change in the Corporation's asset and liability position or the 
market value of the Bank's portfolio equity since September 30, 1997.


              FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY

                                   Part II


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

         Neither the Corporation nor the Bank is involved in any pending 
         legal proceedings other than non-material legal proceedings 
         occurring in the ordinary course of business.

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

         Not applicable.

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

         Not applicable.

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

         Not applicable - previously reported

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

         None.

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

         None.


                                 SIGNATURES


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


                                       FORT THOMAS FINANCIAL CORPORATION



Date: August 14, 1998                  By: /s/ Larry N. Hatfield
      ------------------                   ------------------------------------
                                               Larry N. Hatfield
                                               President and Chief 
                                               Executive Officer



Date: August 14, 1998                  By: /s/ J. Michael Lonnemann
      ------------------                   ------------------------------------
                                               J. Michael Lonnemann
                                               Vice President, Secretary and 
                                               Principal Financial Officer