<PAGE>     
                                 UNITED STATES 
                     SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-Q

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

            For the quarterly period ended September 30, 1996

                                         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 Number 0-17416                     
                                                                               
                            CENTURY FINANCIAL CORPORATION                     
                            -----------------------------
                   (Exact name of registrant as specified in its charter)      
                                                                               
   Pennsylvania                                               25-1553790       
 ---------------                                           --------------    
(State or other jurisdiction of                            (I.R.S. Employer    
 incorporation or organization)                         Identification Number) 
                                                                               
                                 One Century Place                             
                         Rochester, Pennsylvania  15074                        
                        --------------------------------                       
                 (Address of principal executive offices)(Zip code)            
      
                                 (412) 774-1872         
                                 ---------------
               (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 latest practicable date.

Common Stock , $0.835 par value;  3,360,198 shares outstanding at November 4,
1996










<PAGE>     
                         CENTURY FINANCIAL CORPORATION
                                   FORM 10-Q
                                     INDEX


                                                                   PAGE
                                                                  NUMBER
                                                                  ------
PART I - FINANCIAL INFORMATION

  ITEM 1.  Financial Statements                                                

           Consolidated Balance Sheet                                3
           Consolidated Statement of Income                         4-5
           Consolidated Statement of Changes in 
             Stockholders' Equity                                    6
           Consolidated Statement of Cash Flows                      7
           Notes to Consolidated Financial Statements               8-9

  ITEM 2.  Management's Discussion and Analysis of 
           Financial Condition and Results of Operations           10-20

PART II - OTHER INFORMATION

  ITEM 1.  Legal Proceedings                                         21

  ITEM 2.  Changes in Securities                                     21

  ITEM 3.  Defaults Upon Senior Securities                           21

  ITEM 4.  Submission of Matters to a Vote 
           of Security Holders                                       21

  ITEM 5.  Other Information                                         21

  ITEM 6.  Exhibits and Reports on Form 8-K                          21

  Signatures                                                         22


















<PAGE>     
                        CENTURY FINANCIAL CORPORATION
                          CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                   September 30,                  December 31,
                                                       1996                            1995
                                                   --------------                -------------
                                                                 (In thousands)
<S>                                              <C>                           <C>
ASSETS                                                                                                   
Cash and due from banks                          $         12,484              $         10,426
Investment securities available for sale                   75,715                        99,052
Loans  (net of unearned income of $10,662 
  and $8,539)                                             299,885                       257,612
Less allowance for loan losses                              3,131                         3,003
                                                   --------------                -------------- 
      Net Loans                                           296,754                       254,609

Premises and equipment                                      9,768                         8,625
Accrued interest and other assets                           5,054                         4,277
                                                   --------------                -------------- 

      TOTAL ASSETS                               $        399,775              $        376,989
                                                   ==============                ==============
LIABILITIES

Deposits:                                                                                                
  Noninterest - bearing demand                   $         39,949              $         41,708
  Interest - bearing demand                                33,663                        33,191
  Savings                                                  35,263                        35,615
  Money market                                             52,846                        47,370
  Time                                                    179,133                       170,441
                                                   --------------                -------------- 
      Total deposits                                      340,854                       328,325

Short term borrowings                                      17,675                        10,000
Other borrowings                                            4,000                         3,200
Accrued interest and other liabilities                      4,347                         3,722
                                                   --------------                -------------- 
      TOTAL LIABILITIES                                   366,876                       345,247
                                                   --------------                -------------- 
STOCKHOLDERS' EQUITY
Common stock, par value $.835;
  authorized 8,000,000 shares;                                                              
  issued 3,384,833 and 3,376,984 
  shares, respectively                                      2,826                         2,820
Additional paid in capital                                  2,848                         2,755
Retained earnings                                          27,440                        25,285
Treasury stock, at cost 
  (24,035 and 1,259 shares)                                  (397)                          (16)
Net unrealized gain on securities                             182                           898
                                                   --------------                -------------- 
      TOTAL STOCKHOLDERS' EQUITY                           32,899                        31,742
                                                   --------------                -------------- 
      TOTAL LIABILITIES AND 
        STOCKHOLDERS' EQUITY                     $        399,775              $        376,989
                                                   ==============                ==============
</TABLE>

See accompanying unaudited notes to the consolidated financial statements.
                                      Page 3                                 

<PAGE>     
                            CENTURY FINANCIAL CORPORATION
                          CONSOLIDATED STATEMENT OF INCOME
                                     (Unaudited)
<TABLE>
<CAPTION>
                                                              Three Months Ended
                                                                 September 30,
                                                              -------------------
                                                         1996                          1995                              
                                                   --------------                --------------
                                                                (In thousands)
<S>                                              <C>                           <C>
INTEREST INCOME
  Interest and fees on loans:                                 
    Taxable                                      $          6,030              $          5,241
    Tax exempt                                                439                           381
  Federal funds sold                                           21                            33
  Investment securities:
    Taxable                                                 1,109                         1,425
    Tax exempt                                                163                           174
                                                   --------------                -------------- 
      Total interest income                                 7,762                         7,254
                                                   --------------                -------------- 
INTEREST EXPENSE
  Deposits                                                  3,250                         3,281
  Short term borrowings                                       185                            52
  Other borrowings                                             51                            36
                                                   --------------                -------------- 
      Total interest expense                                3,486                         3,369
                                                   --------------                -------------- 

NET INTEREST INCOME                                         4,276                         3,885

Provision for loan losses                                     180                            60
                                                   --------------                -------------- 

NET INTEREST INCOME AFTER PROVISION FOR
  LOAN LOSSES                                               4,096                         3,825
                                                   --------------                -------------- 

OTHER INCOME
  Service fees on deposit accounts                            349                           370
  Trust Department income                                     205                           180
  Net gain (loss) on sale of securities                         -                           (30)
  Other                                                       109                            99
                                                   --------------                -------------- 
      Total other income                                      663                           619
                                                   --------------                -------------- 

OTHER EXPENSE
  Salaries and employee benefits                            1,683                         1,553
  Net occupancy and equipment expense                         509                           489
  Deposit insurance premium                                     1                            15
  Other                                                     1,012                           868
                                                   --------------                -------------- 
      Total other expense                                   3,205                         2,925
                                                   --------------                -------------- 

INCOME BEFORE INCOME TAXES                                  1,554                         1,519
Income taxes                                                  257                           342
                                                   --------------                -------------- 
                                                                           
NET INCOME                                      $           1,297              $          1,177
                                                  ===============                ==============

EARNINGS PER SHARE                              $            0.39              $           0.35
                                                  ===============                ============== 

DIVIDENDS DECLARED PER SHARE                    $            0.15              $           0.11

AVERAGE SHARES OUTSTANDING                              3,366,045                     3,374,163

</TABLE>
See accompanying unaudited notes to the consolidated financial statements.

                                      Page 4
<PAGE>     

                                 CENTURY FINANCIAL CORPORATION
                               CONSOLIDATED STATEMENT OF INCOME
                                         (Unaudited)
<TABLE>
<CAPTION>
                                                                 Nine Months Ended
                                                                   September 30,
                                                                 ------------------
                                                         1996                          1995
                                                    --------------                -------------- 
                                                                   (In thousands)
<S>                                               <C>                           <C>
INTEREST INCOME
  Interest and fees on loans:
    Taxable                                       $         16,948              $         15,405
    Tax exempt                                               1,286                           892
  Federal funds sold                                           111                           217
  Investment securities:
    Taxable                                                  3,736                         3,613
    Tax exempt                                                 518                           447
                                                    --------------                -------------- 
      Total interest income                                 22,599                        20,574
                                                    --------------                -------------- 

INTEREST EXPENSE
  Deposits                                                   9,516                         9,004
  Short term borrowings                                        431                           104
  Other borrowings                                             162                           105
                                                    --------------                -------------- 
      Total interest expense                                10,109                         9,213
                                                    --------------                -------------- 

NET INTEREST INCOME                                         12,490                        11,361

Provision for loan losses                                      415                           180
                                                    --------------                -------------- 

NET INTEREST INCOME AFTER PROVISION FOR
  LOAN LOSSES                                               12,075                        11,181
                                                    --------------                -------------- 
OTHER INCOME
  Service fees on deposit accounts                           1,077                         1,125
  Trust Department income                                      589                           489
  Net gain (loss) on sale of securities                          1                           (14)
  Other                                                        310                           287
                                                    --------------                --------------    
      Total other income                                     1,977                         1,887
                                                    --------------                -------------- 

OTHER EXPENSE
  Salaries and employee benefits                             4,989                         4,591
  Net occupancy and equipment expense                        1,539                         1,462
  Deposit insurance premium                                      1                           315
  Other                                                      2,915                         2,589
                                                    --------------                -------------- 
      Total other expense                                    9,444                         8,957
                                                    --------------                -------------- 

INCOME BEFORE INCOME TAXES                                   4,608                         4,111
Income taxes                                                 1,005                         1,014
                                                    --------------                -------------- 
                                                                           
NET INCOME                                        $          3,603              $          3,097
                                                    ==============                ============== 

EARNINGS PER SHARE                                $           1.07              $           0.92
                                                    ==============                ==============

DIVIDENDS DECLARED PER SHARE                      $           0.43              $           0.31

AVERAGE SHARES OUTSTANDING                               3,371,739                     3,371,812

</TABLE>
See accompanying unaudited notes to the consolidated financial statements.

                                      Page 5
<PAGE>     
                                                                       
                                              CENTURY FINANCIAL CORPORATION
                                           CONSOLIDATED STATEMENT OF CHANGES 
                                                IN STOCKHOLDERS' EQUITY
                                                      (Unaudited)
<TABLE>
<CAPTION>
                                                                                                    Net
                                                Additional                                      Unrealized         Total
                                  Common         Paid in          Retained         Treasury     Gain (loss)     Stockholders'
                                   Stock         Capital          Earnings          Stock      on Securities       Equity
                                  -------       ----------       ----------        ---------   -------------    -------------
                                                               (In thousands)

<S>                              <C>             <C>             <C>              <C>            <C>             <C>
Balance, December 31, 1995       $  2,820        $  2,755        $  25,285        $  (16)        $  898          $  31,742

Net income                                                           3,603                                           3,603
Dividends ($.43 per share)                                          (1,448)                                         (1,448)
Stock options exercised                 6              87                                                               93
Purchase of Treasury stock                                                           (512)                            (512)
Reissuance of Treasury stock                            6                             131                              137
Net unrealized loss on
  securities                                                                                       (716)              (716)
                                  -------         -------         --------         ------         -----           --------

                                                                                                  
Balance, September 30, 1996      $  2,826        $  2,848        $  27,440        $ (397)        $  182          $  32,899
                                  =======         =======         ========         =====          =====           ========

</TABLE>
                                                                
See accompanying unaudited notes to the consolidated financial statements.

                                      Page 6
<PAGE>     
                                CENTURY FINANCIAL CORPORATION
                             CONSOLIDATED STATEMENT OF CASH FLOWS
                                          (Unaudited)
<TABLE>
<CAPTION>
                                                                Nine Months Ended
                                                                  September 30,
                                                                -----------------
                                                       1996                          1995
                                                  --------------                --------------
                                                                 (In thousands)
<S>                                             <C>                           <C> 
OPERATING ACTIVITIES
  Net income                                    $          3,603              $          3,097              
  Adjustments to reconcile 
    net income to net cash
    provided by operating activities:
    Provision for loan losses                                415                           180              
    Depreciation, amortization, and 
      accretion, net                                         118                           378              
    Investment securities 
      (gains) losses, net                                     (1)                           14
    Decrease (increase) in accrued 
      interest receivable                                     65                          (504)             
    Increase in accrued interest payable                     209                         1,166              
    Other, net                                               (91)                         (267)             
                                                    --------------                -------------- 
      Net cash provided by operating activities            4,318                         4,064
                                                    --------------                -------------- 

INVESTING ACTIVITIES
  Investment securities available for sale:                 
    Proceeds from maturities and 
      repayments of securities                            24,464                        13,133              
    Purchases of securities                               (4,660)                      (38,611)             
    Proceeds from sale of securities                       2,881                         5,062
  Investment securities:            
    Proceeds from maturities and 
      repayments of securities                                 -                        10,595              
    Purchases of securities                                    -                       (14,273)             
    Proceeds from sale of securities                           -                           758
Net increase in loans                                    (42,516)                      (15,770)             
Purchases of premises and equipment                       (1,768)                       (1,176)             
Other, net                                                     -                            45              
                                                    --------------                -------------- 
      Net cash used for investing activities             (21,599)                      (40,237)
                                                    --------------                -------------- 
FINANCING ACTIVITIES
  Net increase in deposits                                12,529                        34,254              
  Net increase in short term borrowings                    7,675                         3,930              
  Increase in other borrowings                               800                             -                
  Cash dividends                                          (1,384)                       (1,011)             
  Proceeds from stock options exercised                       93                           121
  Treasury stock purchase                                   (512)                          (73)
  Proceeds from issuance of treasury stock                   138                             -                
                                                    --------------                -------------- 
      Net cash provided by financing activities           19,339                        37,221
                                                    --------------                -------------- 

      Increase in cash and cash equivalents                2,058                         1,048

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                     10,426                         9,418
                                                    --------------                -------------- 

CASH AND CASH EQUIVALENTS AT END OF PERIOD      $         12,484              $         10,466
                                                    ==============                ===============
</TABLE>
See accompanying unaudited notes to the consolidated financial statements.

                                      Page 7
<PAGE>     
                               CENTURY FINANCIAL CORPORATION
                        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                     (Unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation
---------------------------

The consolidated financial statements of Century Financial Corporation
("Corporation") includes the accounts of the Corporation and its wholly owned
subsidiary, Century National Bank and Trust Company ("Century").  Significant
intercompany items have been eliminated in consolidation.  

Basis of Presentation
---------------------

The  accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions for Form 10-Q and therefore do
not include information or footnotes necessary for a complete presentation of
financial condition, results of operations, and cash flows in conformity with
generally accepted accounting principles.  However, all adjustments,
consisting only of normal recurring adjustments which, in the opinion of
management, are necessary for a fair presentation have been included.  The
results of operations for the nine months ended September 30, 1996 are not
necessarily indicative of the results which may be expected for the entire
fiscal year.

Nature of Operations
--------------------

Century Financial Corporation is a Pennsylvania  corporation and is registered
under the Holding Company Act.  The Corporation was organized to be the
holding company of Century National Bank.  The Corporation and its subsidiary
derive substantially all their income from banking and bank - related services
which includes interest earnings on commercial, commercial mortgage,
residential real estate, and consumer loan financing as well as interest
earnings on investment securities and deposit services to its customers. 
Century provides banking services to Southwestern Pennsylvania.  The
Corporation is supervised by the Federal Reserve Board while Century is
subject to regulation and supervision by the Office of the Comptroller of the
Currency.

Accounting for Stock-Based Compensation
---------------------------------------

Effective January 1, 1996, the Corporation adopted Statement of Financial
Accounting Standards Statement No. 123, "Accounting for Stock-Based
Compensation."  This statement encourages, but does not require the
Corporation to recognize compensation expense for all awards of equity
instruments issued after December 31, 1995.  The statement establishes a fair
value based method of accounting for stock-based compensation plans.  The
standard applies to all transactions in which an entity acquires goods or
services by issuing equity instruments or by incurring liabilities in amounts
based on the price of the entity's common stock or other equity instruments. 
Statement 123 permits companies to continue to account for such transactions
under Accounting Principles Board No. 25, "Accounting for Stock Issued to
Employees", but requires disclosure in a note to the financial statements pro
forma net income and earnings per share as if the Corporation had applied the 
the new method of accounting.  The Corporation has elected to continue to
apply the provisions of APB Opinion No. 25 and disclose such information only
in the notes to the consolidated financial statements.  The adoption of this
standard has no effect on the Corporation's financial position or results of
operations.

                                      Page 8
<PAGE>     

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings Per Share
------------------

Earnings per share for the three and nine months ended September 30, 1996 and
1995, have been calculated based upon the weighted average number of
outstanding common shares, including common stock equivalents, if such items
have a dilutive effect.  For the respective periods ended, common stock 
equivalents did not have a material dilutive effect on earnings per share.

Reclassification of Comparative Amounts
---------------------------------------

Certain comparative amounts for prior periods have been reclassified to
conform with current period presentations.


2.    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
                                                                               
                                                       Nine Months Ended
                                                           September 30,
                                                       ------------------- 
                                                        1996          1995
                                                     -----------     ---------
                                                           (In thousands)
Cash paid during the year for:
  Interest                                         $       9,900   $     8,047
  Income taxes                                               960           605

                                         Page 9

<PAGE>     

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

                                    FINANCIAL CONDITION
                                    -------------------

Financial Condition Summary
---------------------------

The Corporation's consolidated assets were $399,775,000 at September 30, 1996,
an increase of $22,786,000 or 6.0% over assets at December 31, 1995.  This
increase was attributable to an increase in net loans receivable offset by a
reduction in investment securities available for sale.  The increase in net
loans receivable was the result of an increase in loan demand in the first
nine months of 1996, with much of the growth being funded by investment
securities available for sale and short term borrowings.  Total consolidated 
liabilities increased by $21,629,000 or 6.3% when compared to total
consolidated liabilities as of December 31, 1995.  The increase in total 
liabilities was mostly attributable to an increase in total deposits and short
term borrowings.  The Corporation's total consolidated stockholders' equity
increased $1,157,000 or 3.6% when compared to total stockholders' equity at
December 31, 1995.  This increase was primarily a result of a retention of net
income of $2,155,000, net of cash dividends declared to shareholders of
$1,448,000,  offset by a decrease of $716,000 in the net unrealized gain on
investment securities available for sale and a net decrease of $375,000 from
treasury stock activity.

Investment Securities Available for Sale
----------------------------------------

Investment securities available for sale at September 30, 1996 decreased
$23,337,000 or 23.6% when compared to December 31, 1995.  This decrease was
primarily a result of the Corporation improving its net interest margin by
funding current loan demand with lower earning investment securities that were
maturing during the same period in 1996.  Total proceeds received from the
maturity and repayments of these securities totaled $24,464,000, offset by
purchases of $4,660,000.  Also contributing to the decrease in investment
securities during the first nine months of 1996 was the sale of securities
totaling $2,881,000 and a reduction of $1,085,000 in the unrealized holding
gain.

Loan Portfolio
--------------

Net loans increased $42,145,000 or 16.6% in the first nine months of 1996
when  compared to December 31, 1995.  This increase was mainly the result of
an increase in overall loan demand and to a greater extent, the hiring of
additional loan originators in the early part of 1996. The increase in loan
portfolio occured mostly in commercial and real estate loans which increased 
$21,757,000 or 34.6% and $13,230,000 or 13.3%, respectively.

The following table represents the composition of the Corporation's loan
portfolio:

                                             September 30,      December 31,
                                                  1996              1995
                                             ------------       -----------
                                                      (In thousands)

Commercial, financial, and agricultural      $      84,702      $      62,945
Real estate - construction                          11,241             12,918
Real estate - mortgage                             112,714             99,484
Installment loans to individuals                    84,677             75,295
Tax exempt loans                                    16,784             15,509
Other                                                  429                  - 
                                                ----------        ----------- 
                                                   310,547            266,151
Less unearned income                                10,662              8,539
                                                ----------        ----------- 
                                                   299,885            257,612
Less allowance for loan losses                       3,131              3,003
                                                ----------        ----------- 
      Net loans                              $     296,754      $     254,609
                                                ==========        ===========

                                      Page 10
<PAGE>     
Allowance for Loan Losses
-------------------------

The Corporation's allowance for loan losses was $3,131,000 at September 30,
1996 compared to $3,003,000 at December 31, 1995.  This represents a $128,000
or 4.3% increase for the first nine months of 1996.

The adequacy of the allowance for loan losses is determined by management
considering certain criteria such as the risk classification of loans,
delinquency trends, charge-off experience, credit concentrations, economic
conditions and other relevant factors.  Specific reserves are established for
each classified credit taking into consideration the credit's delinquency
status, current operating status, pledged collateral and plan of action for
resolving any deficiencies.  All credit relationships in excess of $250,000
are reviewed by management and the executive committee of  Century's Board of
Directors on an annual basis.  In addition, loan relationships in excess of
$250,000, rated substandard or lower are reviewed on a quarterly basis and
evaluated for the adequacy of payment histories, any changes in collateral and
exposure, if any, is specifically reserved for.  All special mention loans are
pooled and a reserve is determined.  All other homogeneous loan pools such as
consumer installment loans, cash reserve, 1-4 family mortgage loans and
unfunded commitments are pooled and the adequacy of the reserve is determined.

Activity in the allowance for loan losses is summarized as follows:
                                                                               
                                                       Nine Months Ended
                                                          September 30,        
                                                       -----------------
                                                     1996              1995
                                                  --------          --------
                                                    (Dollars in thousands)

Balance, beginning of period                    $    3,003        $    3,206

Charge-offs:
  Commercial loans                                      63                 -  
  Real estate mortgages                                  -                49
  Installment loans to individuals                     271               303
                                                  --------          --------
      Total charge-offs                                334               352
                                                  --------          --------
Recoveries:
  Commercial loans                                      13                 3
  Real estate mortgages                                  2                 -  
  Installment loans to individuals                      32                16
                                                  --------          --------
      Total recoveries                                  47                19
                                                  --------          --------

 Net charge-offs                                       287               333
                                                  --------          --------

Provision charged to operations                        415               180
                                                  --------          --------

Balance, end of period                          $    3,131        $    3,053
                                                  ========          ========

Net charge-offs as a percent 
  of average loans, net of unearned                   0.11%             0.13%
                                                  ========          ========

Allowance for loan losses to total 
  loans, net of unearned income                       1.04%             1.22%
                                                  ========          ========

The Corporation believes that the allowance for loan losses at September 30,
1996 is adequate to cover losses inherent in the portfolio as of such date. 
However, there can be no assurance that the Corporation will not sustain
additional losses in future periods, which could be substantial in relation to
the size of the allowance at September 30, 1996.

                                      Page 11
<PAGE>     
Non-performing Assets
---------------------

Non-performing assets include non-performing loans and other real estate
owned.  Non-performing loans consists of non-accrual loans, loans 90 days or
more past due, and restructured loans.  Non-accrual loans represent loans on
which interest accruals have been discontinued and any previously accrued
interest is reversed against current income.  Restructured loans are loans
with respect to which a borrower has been granted a concession on the interest
rate or the original repayment terms because of financial difficulties.

The following table sets forth information regarding non-performing assets:

                                         September 30,        December 31,
                                              1996                1995
                                         -------------        ------------  
                                                  (In thousands)

Non-accrual loans                        $        624        $          901
Loans past due 90 days or more                    207                   266
Restructured loans                                  -                     -  
                                           ----------           -----------
      Total non-performing loans                  831                 1,167
Other real estate owned                            31                     -  
                                           ----------           -----------
      Total non-performing assets        $        862        $        1,167
                                           ==========          ============ 

Non-performing loans as a percentage
  of total loans, net of unearned income         0.28%                 0.45%
Non-performing assets as a percentage of 
  total assets                                   0.22%                 0.31%
Non-performing assets as a percentage 
  of allowance for loan losses                  27.53%                38.86%

At September 30, 1996, the Corporation's total non-performing assets,
including any loans classified for regulatory purposes as loss, doubtful,
substandard or special mention do not represent or result from trends or
uncertainties which management reasonably expects will materially impact
future operating results, liquidity or capital resources.   Nor do they
represent material credits about which management is aware of any information
which causes management to have serious doubts as to the ability of borrowers
to comply with loan repayment terms.

At September 30, 1996 the Corporation had no impaired loans in accordance with
Statement of Financial Accounting Standard Statement No. 114 and 118 that have
a material effect on the financial position or results of operations of the
Corporation. 

Deposits
--------

Total deposits increased $12,529,000 or 3.8% when compared to December 31,
1995.  Noninterest-bearing deposits decreased $1,759,000 or 4.2% in the first
nine months of 1996.  The Corporation's growth occurred mostly in money market
and time deposits.  These deposits increased $5,476,000 or 11.6% and
$8,692,000 or 5.1%, respectively.  This increase was mainly a result of the
Corporation implementing a marketing strategy in 1995, and thereafter, to
increase deposit growth.  The Corporation continues to see a strong market
demand for higher yielding deposits.  This demand is in part a result of
consumers becoming more yield conscious along with an increase in market
competition.

Time deposits include certificates of deposits in denominations of $100,000 or
more.  Such deposits aggregate $27,075,000 and  $27,552,000 at September 30,
1996 and December 31, 1995, respectively.

                                      Page 12
<PAGE>     
Borrowings
----------

Total borrowings of the Corporation increased $8,475,000 or 64.2% when
compared to total borrowings at December 31, 1995.  This increase was mainly a
result of an increase in short term borrowings which were used in part to fund
loan growth occurring in the same period.


                              RESULTS OF OPERATIONS
                              ---------------------

             COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS
                           ENDED SEPTEMBER 30, 1996 AND 1995.

Summary of Earnings
-------------------

The Corporation earned $1,297,000 or $0.39 per share for the three months
ended September 30, 1996.  This represents an increase of $120,000 or 10.2%
over net income reported for the same period in 1995.  The increase in net
income is attributable to an increase in net interest income offset by an
increase in the provision for loan loss and noninterest expense.

Net Interest Income
-------------------

The Corporation's net interest income increased $391,000 or 10.1% during the
three months ended September 30, 1996 when compared to the same period in
1995.  This increase is a result of a $508,000 or 7.0% increase in total
interest income, offset by an increase of $117,000 or 3.5% in total interest
expense.  Net interest income, on a fully taxable equivalent basis, as a
percentage of average earning assets, commonly referred to as the net interest
margin, increased to 4.99% from 4.74% at September 30, 1995.  (Reference may
be made to the table on page 14 in conjunction with the following paragraphs
for further analysis of net interest income.)

Interest income on loans increased $847,000 or 15.1% for the third quarter of
1996 compared to the same period in 1995.  This increase is attributable to an
increase in the average loan balance outstanding during the 1996 period offset
by a decrease in the average yield earned on these assets during the same
period.

Interest income on investment securities decreased $327,000 or 20.5% for the
third quarter of 1996 compared to the same period in 1995.  This decrease is
attributable to a decrease in the average balance of investment securities
outstanding during the 1996 period, offset by an increase in the average yield
earned on these assets during the same period.

Interest income on federal funds sold decreased $12,000 or 36.4% for the third
quarter of 1996 compared to the same period in 1995.  This decrease is a
result of a decrease in the average balance of federal funds sold outstanding
during the 1996 period as well as a decrease in the average yield earned on
these assets during the same period.

Interest expense on deposits decreased $31,000 or .9% for the third quarter of
1996 compared to the same period in 1995.  This decrease is attributable to a
slight decrease in the average rate paid on these funds during the 1996
period, offset by an increase in the average balance of deposits outstanding
during the same period. 

Interest expense on borrowings increased $148,000 or 268.2% for the three
months ended September 30, 1996 compared to the same period in 1995.  This
increase was attributable to an increase in the average balance outstanding
during the period, offset by a decrease in the average rate paid on these
funds.

                                      Page 13
<PAGE>     

Net Interest Income (Continued)
-------------------------------

The following table illustrates information regarding the average balances,
yields and rates on interest earning assets and interest-bearing liabilities:
                                                                               
                                        Three months ended September 30,
                                  --------------------------------------------
                                          1996                    1995
                                  --------------------     ------------------- 
                                   Average     Yield/      Average     Yield/
                                   Balance      Rate       Balance      Rate
                                 ----------    -------    ---------    ------ 
                                              (Dollars in thousands)
Interest earning assets:
  Federal funds sold              $  1,576      5.33%      $  2,192      6.02% 
  Investment securities (1) (3)     78,242      6.93        103,595      6.52  
  Loans (2) (3)                    290,280      9.23        248,569      9.36  
                                  --------     -----       --------    ------ 
       Total interest 
        earning assets             370,098      8.72        354,356      8.51  
                                  --------     -----       --------    ------  
Interest-bearing liabilities:                                                  
  Deposits                         296,008      4.36        294,306      4.42  
  Short term borrowings             12,316      5.97          3,315      6.22  
  Other borrowings                   4,000      5.06          1,700      8.40  
                                  --------     -----       --------    ------  
     Total interest-bearing 
        liabilities                312,324      4.43        299,321      4.47  
                                  --------     -----       --------    ------  
Net earning assets               $  57,774                $  55,035
                                  ========                 ========
Net interest spread                            4.30%                    4.05%
                                               =====                    =====
Net interest margin (4)                         4.99%                   4.74%
                                               ======                   =====

    (1)  Investment securities include securities available for sale and held  
         to maturity.
    (2)  For the purpose of these computations, non-accrual loans are included 
         in the daily average loan amounts outstanding.
    (3)  Yields are computed on a tax equivalent basis using a 34% federal     
         income tax rate.
    (4)  Net interest margin is calculated by dividing the difference between  
         total interest earned and total interest paid by total interest       
         earning assets.

Provision For Loan Losses
-------------------------

The provision for loan losses charged to operations in the third quarter of
1996 was $180,000 compared to $60,000 charged in the same period in 1995,
representing an increase of $120,000 or 200.0%. Although total non-performing
loans remained constant during this same period, the increase in the provision
was a result of such factors as an increase in the loan portfolio for the same
period and Management's ongoing analysis of the adequacy of the allowance for
loan losses. 

Noninterest Income and Expense
------------------------------

The Corporation's total consolidated noninterest income increased $44,000 or
7.1% for the three months ended September 30, 1996 when compared to the same
period in 1995.  This increase was a result of a $25,000 or 13.4% increase in
trust department income, a decrease of $30,000 in the net realized gain/loss
on sale of investment securities, offset by a $21,000 or 5.7% decrease in
service fees on deposit accounts.

                                      Page 14
<PAGE>     

Noninterest Income and Expense (Continued)
------------------------------------------

The Corporation's total consolidated noninterest expense increased $280,000 or
9.6% for the three months ended September 30, 1996 compared to the same period
in 1995.  This increase was primarily a result of a $144,000 or 16.6% increase
in other expenses, a $130,000 or 8.4% increase in salaries and employee
benefits, an increase of $20,000 or 4.1% in net occupancy and equipment
expenses, offset by a decrease of $14,000 or 99.4% in Federal Deposit
Insurance Corporation (FDIC) premium expense.

The increase in salaries and employee benefits is primarily attributable to:
(1) an increase of $111,000 in salaries and wages paid to employees during the
third quarter of 1996 as a result of an increase in staffing levels and annual
salary adjustments; (2) an increase of $7,000 in bonus expense due to
increased profitability of the Corporation for the same period; and (3) an
increase of $13,000 in the Corporation's employee profit sharing plan expense. 
The employee profit sharing plan is based on a percentage of total pre-tax
earnings and return on equity of the Corporation.

The increase in net office occupancy and equipment expense relates in general
to increases in maintenance agreements on equipment, utility and building
maintenance expenses, and depreciation expense for building and equipment. 
The increase in depreciation expense on equipment is mainly a result of the
purchase of a new computer system in April of 1995, and to a lessor extent,
the purchase of personal computers throughout 1995.

Other expense increased mainly as a result of: (1) an increase of $88,000 in
advertising costs; (2) an increase of $30,000 in professional advisory fees;
and (3) an increase of $11,000 in employee tuition reimbursement expense.

Federal Income Taxes
--------------------

Federal income tax expense decreased $85,000 or 24.9% for the three months
ended September 30, 1996 compared to the same period in 1995.  This
decrease was the result of an increase in tax exempt interest earned.

           COMPARISON OF THE RESULTS OF OPERATIONS FOR THE NINE MONTHS
                       ENDED SEPTEMBER 30, 1996 AND 1995.

Summary of Earnings
-------------------

The Corporation earned $3,603,000 or $1.07 per share for the nine months ended
September 30, 1996.  This represents an increase of $506,000 or 16.3% over net
income reported for the same period in 1995.  The increase in net income is
attributable to an increase in net interest income and noninterest income
offset by an increase in provision for loan losses and noninterest expense.

Net Interest Income
-------------------

The Corporation's net interest income increased $1,129,000 or 9.9% during the
nine months ended September 30, 1996 when compared to the same period in 1995. 
This increase is a result of a $2,025,000 or 9.8% increase in total interest
income, offset by an increase of $896,000 or 9.7% in total interest expense. 
Net interest income, on a fully taxable equivalent basis, as a percentage of
average earning assets, commonly referred to as the net interest margin,
increased to 4.90% from 4.75% at September 30, 1995.

Interest income on loans increased $1,937,000 or 11.9% for the first three
quarters of 1996 compared to the same period in 1995.  This increase is
attributable to an increase in the average loan balance outstanding during the
1996 period as well as an increase in the average yield earned on these assets
during the same period.

                                     Page 15
<PAGE>     

Net Interest Income (Continued)
-------------------------------

Interest income on investment securities increased $194,000 or 4.8% for the
first three quarters of 1996 compared to the same period in 1995.  This
increase is attributable to an increase in the average yield earned on these
assets, offset by a slight decrease in the average balance outstanding during
the same period.

Interest income on federal funds sold decreased $106,000 or 48.8% for the
first three quarters of 1996 compared to the same period in 1995.  This
decrease is attributable to a decrease in the average balance of federal funds
sold outstanding during the 1996 period as well as a decrease in the average
yield earned on these assets during the same period.

Interest expense on deposits increased $512,000 or 5.7% for the first three
quarters of 1996 compared to the same period in 1995.  This increase is
attributable to an increase in the average balance of deposits outstanding
during the 1996 period as well as an increase in the average rate paid on
these funds during the same period.

Interest expense on borrowings increased $384,000 or 183.7% for the nine
months ended September 30, 1996 compared to the same period in 1995.  This
increase was attributable to an increase in the average balance outstanding
during the period, offset by a decrease in the average rate paid on these
funds.

The following table illustrates information regarding the average balances,
yields and rates on interest earning assets and interest-bearing liabilities:
                                                                               
                                        Nine months ended September 30,
                                  -------------------------------------------- 
                                          1996                    1995
                                  --------------------     ------------------- 
                                   Average     Yield/      Average     Yield/
                                   Balance      Rate       Balance      Rate
                                 ----------    -------    ---------    ------ 
                                              (Dollars in thousands)
Interest earning assets:
  Federal funds sold              $  2,748      5.38%     $  4,829      5.99%  
  Investment securities (1)(3)      89,429      6.74        90,495      6.32  
  Loans (2) (3)                    272,289      9.25       242,894      9.20
                                   -------      ----       -------      ----
      Total interest 
        earning assets             364,466      8.61       338,218      8.38
                                   -------      ----       -------      ----

Interest-bearing liabilities:                                                  
  Deposits                         292,994      4.34       282,026      4.25
  Short term borrowings              9,426      6.11         2,122      6.53
  Other borrowings                   3,527      6.15         1,700      8.23
                                   -------      ----       -------      ----
      Total interest-bearing 
        liabilities                305,947      4.41       285,848      4.29
                                   -------      ----       -------      ----  
                                
Net earning assets               $  58,519                $ 52,370
                                  ========                 =======
                             
Net interest spread                             4.20%                   4.09%
                                                ====                    ====
Net interest margin (4)                         4.90%                   4.75%
                                                ====                    ==== 

(1)  Investment securities include securities available for sale and held to   
     maturity.
(2)  For the purpose of these computations, non-accrual loans are included in  
     the daily average loan amounts outstanding.
(3)  Yields are computed on a tax equivalent basis using a 34% federal income  
     tax rate.
(4)  Net interest margin is calculated by dividing the difference between      
     total interest earned and total interest paid by total interest earning   
     assets.

                                       Page 16
<PAGE>     

Provision For Loan Losses
-------------------------

The provision for loan losses charged to operations for the nine months ended
September 30, 1996 was $415,000 compared to $180,000 charged in the same
period in 1995, representing an increase of $235,000 or 130.6%.  Although
total non-performing loans remained constant during this same period, the
increase in the provision was a result of such factors as an increase in the
loan portfolio for the same period and management's ongiong analysis of the
adequacy of the allowance for loan losses. 

Noninterest Income and Expense
------------------------------

The Corporation's total consolidated noninterest income increased $90,000 or
4.8% for the nine months ended September 30, 1996 when compared to the same
period in 1995.  This increase was a result of a $100,000 or 20.5% increase in
trust department income, a $23,000 or 8.0% increase in other income, a
decrease of $15,000 in net securities gains realized, offset by a $48,000 or
4.3% decrease in service fees on deposit accounts.

The Corporation's total consolidated noninterest expense increased $487,000 or
5.4% for the nine months ended September 30, 1996 compared to the same period
in 1995.  This was primarily a result of a $398,000 or 8.7% increase in
salaries and employee benefits, a $326,000 or 12.6% increase in other
expenses, an increase of $77,000 or 5.3% in net office occupancy and equipment
expense, offset by a decrease of $314,000 or 99.7% in Federal Deposit
Insurance Corporation (FDIC) premium expense.

The increase in salaries and employee benefits is primarily attributable to:
(1) an increase of $276,000 in salaries and wages paid to employees during the
first nine months of 1996 as a result of an increase in staffing levels and
annual salary adjustments; (2) an increase of $25,000 in bonus expense due to
increased profitability of the Corporation for the same period; and (3) an
increase of $143,000 in the Corporation's employee profit sharing plan
expense.  The employee profit sharing plan is based on a percentage of total
pre-tax earnings and return on equity of the Corporation.  These increases
were all offset by a $43,000 decrease in the pension plan expense.

The increase in net office occupancy and equipment expense relates in general 
to increases in maintenance agreements on equipment, utility and building
maintenance expenses, and depreciation expense for building and equipment. 
The increase in depreciation expense on equipment is mainly a result of the
purchase of a new computer system in April of 1995, and to a lessor extent,
the purchase of personal computers throughout 1995.

Federal Deposit Insurance Corporation premium expense decreased $314,000
during the first three quarters of 1996 as a result of a reduction in the FDIC
assessment for the same period ended.

Other expense increased mainly as a result of: (1) an increase of $105,000 in
advertising costs; (2) an increase of $53,000 in professional advisory fees;
(3) an increase of $48,000 in legal related fees; (4) a $38,000 increase in
employee tuition reimbursement expense; and (5) an increase of $26,000 in ATM
related costs.

Federal Income Taxes
--------------------

Federal income tax expense decreased $9,000 or .9% for the nine months ended
September 30, 1996 compared to the same period in 1995 as a result of an
increase in tax-exempt interest earned.

                                      Page 17
<PAGE>     

Liquidity and Interest Rate Sensitivity
---------------------------------------

The liquidity of a banking institution reflects its ability to provide funds
to meet loan requests, to accommodate possible outflows of deposits, and to
take advantage of interest rate market opportunities.  Funding of loan 
requests, providing for liability outflows, and management of interest rate
fluctuations require continuous analysis in order to match the maturities of
specific categories of short-term loans and investments with specific types of
deposits and borrowings.  Bank liquidity is thus normally considered in terms
of the nature and mix of the banking institution's sources and uses of funds.


Asset liquidity is provided through loan repayments and the management of
maturity distributions for loans and securities.  An important aspect of
liquidity lies in maintaining adequate levels of interest-earning assets that
mature within one year.  Interest-earning deposits in banks, federal funds
sold and short-term investment securities are used for this purpose and
totaled $28,750,000 at September 30, 1996.

Closely related to the concept of liquidity is the management of
interest-earning assets and interest-bearing liabilities.  The Corporation
manages its rate sensitivity position to minimize fluctuation in the net
interest margin and to minimize the risk due to changes in interest rates,
thereby attempting to achieve consistent growth of net interest income.

The difference between a financial institution's interest-sensitive assets
(i.e. assets which will mature or reprice within the same time period) and
interest-sensitive liabilities (i.e., liabilities which will mature or reprice
within the same period) is commonly referred to as its "Gap" or "Interest Rate
Gap".  An institution having more interest rate sensitive assets than interest
sensitive liabilities within a given time period is said to have a "positive
gap"; an institution having more interest rate sensitive liabilities than
interest rate sensitive assets within a given time period is said to have a
"negative gap".

                                      Page 18
<PAGE>     

Liquidity and Interest Rate Sensitivity (Continued)
---------------------------------------------------

The following table is presented in conformity with industry practice and
reflects contractual repricing schedules as of September 30, 1996:

                             3         3-12       1-5       Over
                           Months     Months     Years    5  Years   Total
                           ------     ------     -----    --------   -----
                                             (In thousands)

Investment securities:    
  Taxable                 $ 9,369    $ 18,671   $ 34,519   $   906  $ 63,465
  Non-taxable                 250         460      4,976     6,564    12,250
Loans                      74,616      46,152    107,836    71,281   299,885
                           -------     -------   --------   -------  --------
  Total earning assets     84,235      65,283    147,331    78,751   375,600
                           -------     -------   --------   -------  --------

Interest-bearing demand
  deposits                      -           -     27,043     6,620    33,663
Savings deposits                -           -     28,328     6,934    35,262
Money Market deposits           -      26,423     26,423         -    52,846
Time deposits              36,778      71,853     64,303     6,199   179,133
Short term borrowings      17,675           -          -         -    17,675
Other borrowings                -           -      4,000         -     4,000
                           -------     -------   --------   -------  --------
  Total interest-bearing
    liabilities            54,453      98,276    150,097    19,753   322,579
                           -------     -------   --------   -------  --------

Interest rate 
  sensitivity gap         $29,782    $(32,993)   $(2,766)  $58,998  $ 53,021
                           =======    ========    =======   =======   =======

Cumulative interest rate
  sensitivity gap         $29,782    $ (3,211)   $(5,977)  $53,021   
                           =======    ========    =======   =======          
Cumulative interest rate
  sensitivity gap as a
  percentage of total
  earning assets             7.93%      (0.85)%    (1.59)%  14.12%
                           =======    ========    =======   =======            
     

The above table is a static view of the balance sheet with assets and
liabilities grouped into certain defined time periods.  Being measured at a
specific point in time, this analysis may not fully describe complexity of
relationships between product features and pricing, market rates, and future
management of the balance sheet mix.  The primary method of measuring the
sensitivity of earnings to market interest rates is to simulate expected
earnings streams under various rate scenarios while at the same time adjusting
for the anticipated behavior of non-contractual deposit accounts.  These
adjustments are influenced by the Federal Reserve Bank and other regulators'
proposed guidelines for the measurement of interest rate risk.  Subject to
these qualifications, the table above reflects a cumulative gap for assets and
liabilities maturing or repricing in the next twelve months.

The Corporation's asset/liability management committee monitors the interest
rate sensitivity position of the Corporation to ultimately achieve consistent
growth of net interest income.

                                      Page 19
<PAGE>     

Liquidity and Interest Rate Sensitivity (Continued)
---------------------------------------------------

At this time, management is not aware of any known trends, events, or
uncertainties that would have a material effect on either the liquidity,
capital resources or operations of the Corporation.  Nor is management aware
of any current recommendations by the regulatory authorities which, if
implemented, would have a material effect on the liquidity, capital resources
or operations of the Corporation.

Capital Resources
-----------------

Century Financial Corporation, as a bank holding company, is required to meet
certain risk-based capital and leverage requirements.  The risk-based capital
requirements redefine the components of capital, categorize assets into
different risk classes and include certain off-balance sheet items in the
calculation of the adequacy of capital.  A financial institution's capital is
divided into two classes, Tier I and Tier II.  The Corporation's Tier I and
total risk-based capital (including Tier II) consisted of the following:
                                                                               
                                 September 30, 1996       December 31, 1995
                                 ------------------       -----------------
                                 Amount   Percentage      Amount   Percentage
                                 ------    ----------     ------   ---------- 
                                            (Dollars in thousands)             
                                                                     
Tier I:
  Actual                        $ 32,414     10.79%      $ 30,668     11.43%
  Required                        12,016      4.00         10,732      4.00
                                 --------    ------       --------    ------
  Excess                        $ 20,398      6.79%      $ 19,936      7.43%
                                 --------    ------       --------    ------
Total risk-based capital:
  Actual                        $ 35,545     11.83%      $ 33,671     12.55%
  Required                        24,033      8.00         21,464      8.00
                                 --------    ------       --------    ------
 Excess                         $ 11,512      3.83%      $ 12,207      4.55%
                                 --------    ------       --------    ------

In addition to risk-based capital requirements, a leverage ratio test must
also be met.  The leverage ratio is defined as the ratio of Tier I capital to
assets (not risk adjusted).  The required ratio for each financial institution
will be determined based on the financial institution's relative soundness.  A
minimum ratio of Tier I capital to total assets of three percent has been
established for top rated financial institutions, with less highly rated or
those with higher levels of risk required to maintain ratios of 100 to 200
basis points above the minimum level.  The Corporation's leverage ratio was
8.29% and 8.13% at September 30, 1996 and December 31, 1995, respectively.


                                      Page 20
<PAGE>     
                          CENTURY FINANCIAL CORPORATION
                          PART II - OTHER INFORMATION


ITEM  1.  Legal Proceedings

          None

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

               The exhibits listed below are filed herewith or incorporated    
               herein by reference:

                27  Financial Data Schedule, filed herewith.

           (b)  Reports on Form 8-K

                None


                                       Page 21

<PAGE>     
                                  SIGNATURES



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


                                    Century Financial Corporation



Date:  November 4, 1996             By: /s/   Joseph N. Tosh, II
                                        -------------------------              
                                       Joseph N. Tosh, II
                                       President and Chief Executive Officer
                                       (Principal Executive Officer)


Date:  November  4, 1996            By: /s/   Donald A. Benziger
                                        -------------------------
                                       Donald A. Benziger
                                       Senior Vice President and Chief       
                                       Financial Officer                     
                                       (Principal Financial Officer)

                                      Page 22