SECURITIES AND EXCHANGE COMMISSION
Washington,  DC  20549

FORM 10-QSB

(Mark One)

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

          For the quarter ended June 30, 1997

[ ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES 
AND EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM 
__________________ TO _________________

Commission File Number:  0001003986

CALVIN B. TAYLOR BANKSHARES, INC.
(Exact name of issuer as specified in its charter)

                                      Maryland             52-1948274   
State or other jurisdiction of incorporation or organization
	(I.R.S. Employer Identification
							  No.)

   24 North Main Street,  Berlin,  Maryland  21811   
(Address of principal executive offices and zip code)

       (410) 641-1700       
(Issuer's telephone number)





Check whether the issuer (1) filed all reports required to be filed by
 Section 13 or 15(d) of the 
Exchange Act during the past 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 ________


State the number of shares outstanding of each of the issuer's classes
 of common equity, as of the 
latest practicable date.

The registrant has 810,000 shares of common stock ($1.00 par) outstanding as
 of July 18, 1997.


Transitional Small business Disclosure Format (check one)  Yes______  NO   X   

-1-


Calvin B. Taylor Bankshares, Inc. and Subsidiary
Form 10-QSB
Index


Part I  -	Financial Information							            
Page

	Item 1	Financial Statements
		Consolidated Statements of Condition	                     				3
		Consolidated Statements of Income				                        	4
		Consolidated Statements of Cash Flows				                     5
		Notes to Financial Statements						                           6

	Item 2	Management's Discussion and Analysis of Financial Condition and
		Results of Operation						                                   7-8

Part II -	Other Information
	Item 1	Legal Proceedings				                                			9
	Item 2	Changes in Securities						                            	9
	Item 3	Defaults Upon Senior Securities					                   	9
	Item 4	Submission of Matters to a Vote of Security Holders		  	9
	Item 5	Other Information						                                	9
	Item 6	Exhibits and Reports on Form 8-K				                   	9


Calvin B. Taylor Bankshares, Inc. and Subsidiary
Part I - Financial Information
Consolidated Statements of Condition 
(unaudited)

				June 30, 1997		 December 31, 1996
		Assets




Cash and due from banks            	$15,739,565 	$ 9,802,923 
Federal funds sold	                 	21,772,315 		14,000,000 
Interest-bearing deposits            	1,229,00	    1,423,000 
Investment securities available
for sale			                           	2,305,150		 2,360,400 
Investment securities 
held to maturity
(approximate fair value of
 $50,944,145
and $62,789,427)	                    	50,853,359 	        	62,610,242 
Loans, less allowance
 for credit lossesof 
$2,072,399 and $2,040,475           	151,635,818	       	 149,059,660 
Premises and equipment               	 3,900,349          		3,500,851 
Accrued interest income               	1,685,885	          	1,626,619 
Intangible assets	                       	37,127             		66,812 
Deferred income taxes                  		176,062            		154,323 
Other assets		                           	93,249 	           	 36,135 
Total			                          	$ 249,427,879        $ 244,640,965 

Liabilities and Stockholders' Equity

Deposits
Noninterest-bearing          $        36,229,856 			 $    31,837,470 
Interest-bearing        	            171,501,934	 			    172,460,336 
                  		           	     207,731,790			      204,297,806 

Accrued interest payable                 417,767 		          428,451 
Accrued income taxes                      49,941 	            81,197 
Obligation under
capital lease                             61,720			          126,611 
Other liabilities                         11,429 		            7,827 
                              			    208,272,647   			   204,941,892 

Stockholders' equity

  Common stock, par value
$1 per share
authorized 2,000,000 shares,
 issued and 
outstanding 810,000 shares              810,000 				         810,000 
Capital surplus		                    17,290,000 				      17,290,000 
  Retained earnings	                 22,863,475 				      21,372,763 
                              			    40,963,475 				      39,472,763 

Net unrealized gain 
on securities available 
for sale			                            191,757 				          226,310 

    			                                 41,155,232			     39,699,073 
                                  			$ 249,427,879  			$ 244,640,965 





Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Statements of Income (unaudited)

				For the three months ended	For the six months ended
                               				June 30,		              	June 30,
			                               	1997	       	1996	      	1997	    	1996
Interest and dividend revenue
Loans, including fees
                          				$ 3,251,793	$ 3,086,602	$ 6,414,162	$ 6,022,696 
  U.S. Treasury securities  	     605,752     458,720   1,264,851   1,056,004 
  State and municipal securities  123,315     141,086     270,675     244,628 
  Federal funds sold 		           250,217     271,792     455,491     636,537 
  Deposits with banks     	        16,429      25,528      34,390      52,739 
  Equity securities       		        3,322       3,234       6,556       6,402 
  Total interest and dividend 
revenue  	                 		   4,250,828   3,986,962   8,446,125   8,019,006 

Interest expense
  Deposit interest        		    1,438,367   1,481,600   2,889,506   2,994,665 
  Other 			                         1,829      -            1,829       3,798 
 Total interest expense    	    1,440,196   1,481,600 	 2,891,335   2,998,463 



  Net interest income  	   	    2,810,632   2,505,362   5,554,790   5,020,543 
  Provision for credit losses      25,000      25,000      25,000      25,000 
  Net interest income after
provision for credit losses	    2,785,632   2,480,362   5,529,790   4,995,543 

  Other operating revenue
Service charges on 
deposit accounts  		              156,371     146,912     297,364     275,539 
  Miscellaneous revenue   	        95,568      83,244     137,095     120,143 
  Total other operating revenue   251,939     230,156     434,459     395,682 

Other expenses

  Salaries and employee benefits  774,824     696,808   1,400,545   1,302,601 
  Occupancy   			                 114,094      89,067     213,301     191,415 
  Furniture and equipment  	       61,734      53,761     214,793     210,354 
  Other operating       		        279,430     227,491     507,558     441,205 
 	Total other expenses  	       1,230,082   1,067,127   2,336,197   2,145,575 

Income before income taxes  	   1,807,489   1,643,391   3,628,052   3,245,650 
Income taxes    		                692,772     567,451   1,327,342   1,157,880 

Net income 		                $  1,114,717 $ 1,075,940 $ 2,300,710 $  2,087,770 

Earnings per 
common share 	             		$      1.38  $     1.33  $    2.84  $      2.58 





-4-


Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Statements of Cash Flows (unaudited)


							Six Months Ended
					                                   	June 30,	         	June 30,
                                    						1997	            		1996
Cash flows from operating activities
  Interest received 	            		$      8,201,905  $      7,818,346 
  Other revenue received	                 		397,887	          425,763 
  Cash paid for operating expenses	     	(2,162,450)       (2,011,754)
  Interest paid				                     	(2,902,019)       (3,015,331)
  Taxes paid       		                  		(1,358,598)       (1,779,407)
                                   						 2,176,725         1,437,617 

Cash flows from investing activities

  Cash paid for premises, equipment, intangibles,
    and construction in progress			       (560,498)          (378,083)
  Net loans to customers		              	(2,601,158)      (10,029,335)
  Redemption of matured securities	      18,342,000        21,670,000 
  Investment in securitie	             		(6,401,205)      (18,183,498)
  Redemption of certificates, net of
 purchases                                  194,000           293,000 
                                   						 8,973,139        (6,627,916)

Cash flows from financing activities
  Net change in customer deposits       		3,433,984       	(2,232,150)
  Payment on capital lease			              (64,891)	          (66,923)
  Dividends paid                    				  (810,000)          (810,000)
                       					              2,559,093        (3,109,073)

Net increase (decrease) in cash         		13,708,957      (8,299,372)
Cash and equivalents
at beginning of period	               	 		23,802,923       42,028,482 
Cash and equivalents at end of period $  	37,511,880  $    33,729,110 

Reconciliation of net income to 
net cash provided
from operating activities
  Net income 				                  $      2,300,710  $      2,087,770 
  Adjustments 
    Depreciation and amortization   		      170,145 	      164,620 
    Loss on sale of securities                 -               -   
    Deferred tax provision     		              -               -   
    Provision for loan losses     			        25,000         25,000 
    Security discount accretion,
net of premium amortization	               (184,954)       (77,752)
    Decrease (increase) in accrued interest
receivable and other assets			              (95,838)	      (154,522)
    Increase (decrease) in accrued interest
      payable and other liabilities       	 (38,338)       (607,499)
					                               $      2,176,725  $    1,437,617 



Calvin B. Taylor Bankshares, Inc. and Subsidiary
Notes to Financial Statements




1.	Basis of Presentation

		The accompanying unaudited condensed financial statements have been
 prepared in accordance with generally accepted accounting principles for the
 interim financial information and with the instructions to Form 10-QSB and
 Regulation S-X of the Securities and Exchange Commission.  Accordingly, they
 do not include all the information and footnotes required by generally
 accepted accounting principles for complete financial statements.  In the
 opinion of management, all adjustments (consisting of normal recurri
uarters and six months ended June 30, 1997 and 1996 are not necessarily
 indicative of the results that may be expected for the years ending December
 31, 1997 and 1996.  For further information, refer to the financial
 statements and footnotes thereto for the Registrant's fiscal period ended
 December 31, 1996.
2.	New Accounting Principles

		During the first quarter of 1997, the Company adopted Financial Accounting
 Standards Board Statement No. 125 "Accounting for Transfers and Servicing of
 Financial Assets and Extinguishments of Liabilities."  Under this principle,
 financial assets are recognized based on the assets the Company controls and
 removed from the balance sheet when control is 
surrendered.  Liabilities are recorded when incurred.

3.	Cash Flows

		For purposes of reporting cash flows, cash and cash equivalents include cash
 on hand, amounts due from banks and overnight investments in federal funds
 sold.

Calvin B. Taylor Bankshares, Inc. and Subsidiary
Part I Financial Information
Item 2.  Management's Discussion and Analysis or Plan of Operation.

	The following discussion of the financial condition and results of
 operations of the Registrant (the Company) should be read in conjunction
 with the Company's financial statements and related notes and other
 statistical information included elsewhere herein.
General
	The Company was incorporated in Maryland on October 31, 1995.  The Company was 
organized to become a bank holding company and to own and control all of the
 capital stock of a Maryland state bank with the name Calvin B. Taylor
 Banking Company (the "Bank").  Final 
regulatory and stockholder approval, to exchange the outstanding shares of the
 Bank for shares of the Company, was received in February, 1996.

	The Bank was established in 1890 and incorporated in 1907.  The Company
 currently 
engages in no business other than owning and managing the Bank.  It is
 seeking regulatory approval to charter a second bank in the state of Delaware.

Financial Condition, Liquidity and Sources of Capital
	The major sources of liquidity of the Company arise from loan repayments,
 short-term investments, including federal funds sold, and an increase in
 core deposits.  During the first quarter of the year, the Company's
 liquidity declines as businesses in the trade area of the Bank borrow funds
 to buy stock for the Summer tourist season.  The Bank typically experiences
 a decline in deposits since these businesses are using their deposits to
 meet their cash flow needs.  Generally, this situation reverses during 
osits from tourists and Summer residents.  Throughout the second and third
 quarters the Bank maintains its high liquidity level.  Funds from seasonal
 deposits are invested in short-term U.S. Treasury Bills and Federal Funds.
  Average liquid assets (cash and amounts due from banks, interest bearing
 deposits in other banks, federal funds sold, and investment securities)
 compared to average deposits were 41.30% for the second quarter of 1997
 compared to 42.71% for the first quarter of 1997 and 43.11% for the s

	At June 30, 1997, the Bank's interest rate sensitivity, as measured by gap
 analysis, showed the Company was asset-sensitive with a one-year cumulative
 gap, as a percentage of interest-earning assets, of 14.58%.  Generally
 asset-sensitivity indicates that assets reprice quicker than liabilities and
 in a rising rate environment net interest income typically increases.
  Conversely, if interest rates decrease, net interest income would decline. 
 The Company has classified its demand mortgage and commercial loans
e changes since the decision to call the loans and change the rates rests
 with the Company.  
	The leverage ratios of the Bank, based on average assets for the quarters
 ended June 30, 1997 and 1996 were 17.30% and 16.95%, respectively.  Both are
 substantially in excess of 
regulatory minimum requirements. 

Results and Plan of Operation
	Net income for the three months ended June 30, 1997, was $1,114,717,
 or $1.38 per share, compared to $1,075,940, or $1.33 per share, for the
 three months ended June 30, 1996 which contributed to the year to date
 increase in net income of $212,940 from $2,087,770 or $2.58 per share in
 1996 to $2,300,710 or $2.84 in 1997.  The primary reason net income
 increased is from an increase in net interest income as funds have shifted
 from lower yielding investments to loans.

	The Bank reviewed its loan portfolio and determined the allowance, at 1.35%
 of gross loans, was adequate at June 30, 1997.  At December 31, 1996, the
 allowance was 1.35% of gross loans.  At June 30, 1997, no loans were
 nonaccruing, and only .21% of the portfolio was delinquent ninety days or more.

	The Bank employed one hundred full time equivalent employees during the
 second quarter of 1997.  The Bank expects to maintain this level through the
 Summer and then reduce its staff in the Fall by several part time positions.
  Part time employees are utilized during the Summer to handle the increased
 work associated with the increase in seasonal tourist deposits. The Company
 has no employees outside those hired by the Bank.

	The Bank conducts a general commercial banking business in its service area,
 of Worcester County emphasizing the banking needs of individuals and small-
 to medium-sized businesses and professional concerns.  The Bank offers a
 full range of deposit services that are typically available in most banks
 and savings and loan associations, including checking accounts, NOW
 accounts, savings accounts and other time deposits of various types ranging
 from daily money market accounts to longer-term certificates of dep

	The Bank also offers a full range of short- to medium-term commercial and
 personal loans.  The Bank also originates demand mortgage loans and real
 estate construction and acquisition loans.  Loans originated to date are
 anticipated to be held in the Bank's portfolio.  Other bank services include
 cash management services, safe deposit boxes, travelers checks, direct
 deposit of payroll and social security checks, and automatic drafts for
 various accounts.  The Bank is associated with the MAC network of autom
offers MasterCard and VISA credit card services through a correspondent bank
 as an agent for the Bank.

	During the second quarter of 1996, the Company purchased land in Delaware.
 During the first quarter of 1997, the Company exercised an option on a
 second Delaware location. The Company plans to start a Delaware bank which
 it expects to open in late 1997 or early 1998.  
Plans for this expansion are in the preliminary stages.  The Company cannot
 assure its success in entering Delaware.  If unsuccessful, the Company will
 sell all land held in Delaware.  The Company also has an option to purchase
 property in Pocomoke, Maryland.

Calvin B. Taylor Bankshares, Inc. and Subsidiary
Part II Other Information


Item 1	Legal Proceedings
	Not applicable

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
	The annual meeting of the stockholders was held on May 7, 1997.  The only 	
	 matters submitted to a vote were the items listed in the proxy statement.
	 Stockholders voted on all matters as recommended by the Board of Directors
 	in the proxy materials.

Item 5	Other information
	Not applicable.

Item 6	Exhibits and Reports on Form 8-K
	a)	Exhibits
 2.  Proxy Statement dated December 26, 1996 is incorporated by reference.

	b)	Reports on Form 8-K
There were no reports on Form 8-K filed  for the quarter 	ended June 30, 1997.






















-9



SIGNATURES

	Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
 Act of1934, the Registrant has duly caused this report to be signed on its
 behalf by the undersigned,thereunto duly authorized.



		Calvin B. Taylor Bankshares, Inc.                  







Date: _________________	By:    /s/  Reese F. Cropper, Jr.   
			Reese F. Cropper, Jr.
			President and CEO



Date: _________________	By:     /s/  William H. Mitchell    
			William H. Mitchell
			Chief Financial Officer