<PAGE> 1
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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                       Washington, DC  20549

                            FORM 10-QSB


X  QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES
           ACT OF 1934 FOR THE PERIOD ENDED JUNE 30, 1997



        TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
 
       For the transition period from ________ to _________.

                  Commission file number: 0-26680


                     NICHOLAS FINANCIAL, INC.
      (Exact name of registrant as specified in its Charter)


       British Columbia, Canada                   8736-3354
   (State or Other Jurisdiction of             (I.R.S. Employer
     Incorporation or Organization)          Identification No.)

  2454 McMullen Booth Road, Building C
        Clearwater, Florida                         34619
  (Address of Principal Executive Offices)        (Zip Code)

                          (813) 726-0763
       (Registrant's telephone number, Including area code)

                          Not applicable
  (Former name, former address and former fiscal year, if changed
                       since last report)

Indicate  by check mark whether the registrant (1) has filed  all
reports  to  be  filed by Section 13 and 15(d) of the  Securities
Exchange Act of 1934 during the preceding 12 months (or for  such
shorter  periods 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____


  As of August 8th, 1997 there were 6,990,544 shares of common
                       stock outstanding
 
 This Form 10-QSB consists of 16 pages. Exhibits are indexed at
                            page 15.
========================================================================
<PAGE> 2


                    Nicholas Financial, Inc.

                           Form 10-QSB

                              Index


Part I. Financial Information                                Page

Item 1. Financial Statements

Condensed Consolidated Balance Sheet as of June 30, 1997.......3

Condensed Consolidated Statements of Income for the three
     months ended June 30, 1997 and 1996.......................4

Condensed Consolidated Statements of Cash Flows for the three
     months ended June 30, 1997 and 1996.......................5

Notes to the Condensed Consolidated Financial Statements.......6

Item 2. Management's Discussion and Analysis of the Financial
         Condition and Results of Operations...................8

Part II. Other Information

Item 1. Legal Proceedings.....................................13

Item 2. Changes in Securities.................................13

Item 3. Defaults upon Senior Securities.......................13

Item 4. Submission of Matters to a Vote of Security Holders...13

Item 5. Other Information.....................................13

Item 6. Exhibits and Reports on Form 8-K......................13

        Signatures............................................14

        Index of Exhibits.....................................15

        Exhibit 11.1- Statement Re: 
             Computation of Per Share Earnings................16

<PAGE> 3

                     Nicholas Financial, Inc.
                                
               Condensed Consolidated Balance Sheet
                                
                            (Unaudited)

<TABLE>                                                       
<CAPTION>
                                                        June 30
                                                          1997
                                                      -------------
<S>                                                 <C>
Assets
Cash                                                  $    80,805
Finance receivables, net                               27,060,962
Accounts receivable                                        14,524
Prepaid expenses and other assets                         348,786
Property and equipment, net                               187,901
Deferred income taxes                                     473,367
                                                      ------------
Total assets                                          $28,166,345
                                                      ============

Liabilities
Line of credit                                        $18,630,594
Notes payable - related party                           1,741,595
Accounts payable                                        1,137,993
Income taxes payable                                      219,594
Deferred revenues                                         157,635
Other liabilities                                          27,110
                                                      ------------
                                                       21,914,521
                                                                 
Shareholders' equity                                             
Preferred stock, no par: 5,000,000 shares               
authorized;none issued and outstanding                          -
Common stock, no par: 20,000,000 shares                          
authorized; 6,990,544 shares  issued and                 
outstanding                                             3,713,210
Retained earnings                                       2,538,614
                                                      ------------
                                                        6,251,824
                                                      ------------
Total liabilities and shareholders' equity            $28,166,345
                                                      ============
See accompanying notes.
</TABLE>
<PAGE> 4

                     Nicholas Financial, Inc.
                                
            Condensed Consolidated Statements of Income
                                
                            (Unaudited)
<TABLE>
<CAPTION>
                                                 Three months ended
                                                       June 30
                                                 1997          1996
                                               ------------------------
<S>                                           <C>          <C>
Revenue:                                                
Interest income on finance receivables         $1,691,808   $1,348,064
Sales                                             109,481      113,711
                                               ------------------------
                                                1,801,289    1,461,775
Expenses:                                                        
Cost of sales                                      21,377       22,465
Marketing                                          67,620       59,587
Administrative                                    699,185      547,747
Provision for credit losses                       132,322       54,313
Deferred compensation expense                           -       29,947
Depreciation and amortization                      25,500       20,765
Interest expense                                  499,234      394,630
                                               ------------------------
                                                1,445,238    1,129,454
                                               ------------------------
Operating income before income taxes              356,051      332,321

Income tax expense :                                             
Current                                           201,505      139,784
Deferred                                          (62,000)     (13,919)
                                               ------------------------
                                                  139,505      125,865
                                               ------------------------
Net Income                                       $216,546     $206,456
                                               ========================

Net Income per common and common 
equivalent share                                    $0.03        $0.03
                                               ========================

Weighted average number of common and 
common equivalent shares                        6,990,544    6,175,542
                                               ========================

See accompanying notes.

</TABLE>
<PAGE> 5

                     Nicholas Financial, Inc.

          Condensed Consolidated Statements of Cash Flows

                            (Unaudited)
<TABLE>
<CAPTION>
                                               Three months ended
                                                     June 30
                                               1997          1996
                                             -----------------------
<S>                                           <C>         <C>
Operating activities
Net income                                     $216,546    $206,456
Adjustments to reconcile net income to net
cash flows provided by operating activities:
  Depreciation of property and equipment         25,500      19,500
  Provision for credit losses                   132,322      54,313
  Amortization of intangible assets and
    deferred loan costs                               -       6,215
  Deferred compensation expense                       -      29,947
  Deferred income taxes                         (62,000)    (13,919)
Changes in operating assets and liabilities:
  Accounts receivable                            17,700       1,041
  Prepaid expenses and other assets              14,785    (149,120)
  Accounts payable                             (136,031)   (163,395)
  Deferred revenues                             (16,379)     13,389
  Income taxes payable                          146,667       6,784
  Other liabilities                                (700)    398,576
                                             -----------------------
Net cash provided by operating activities       338,410     409,787

Investing activities
Increase in finance receivables, net of
principal collected                          (1,270,193) (1,285,213)
Purchase of property and equipment              (31,060)    (26,118)
                                             -----------------------
Net cash used by investing activities        (1,301,253) (1,311,331)

Financing activities                                             
Net proceeds from notes payable-related                          
party and line of credit borrowings             935,500     728,919
Proceeds from sale of the Company's 
common stock                                          -       1,767
                                             -----------------------
Net cash provided by financing activities       935,500     730,686
                                             -----------------------
Net decrease in cash                            (27,343)   (170,858)

Cash, beginning of period                       108,148     490,791
                                             -----------------------
Cash, end of period                             $80,805    $319,933
                                             =======================
See accompanying notes.
</TABLE>

<PAGE> 6

                     Nicholas Financial, Inc.

     Notes to the Condensed Consolidated Financial Statements

                           (Unaudited)

                          June 30, 1997


1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements 
have  been prepared  in  accordance with generally accepted accounting
principles for interim financial information. Accordingly, they do not
include  all  of  the  information and footnotes required by generally
accepted accounting principles for complete  financial  statements. In
the  opinion  of  management,  all  adjustments  (consisting of normal
recurring accruals) considered necessary for  a fair presentation have
been included.  Operating  results for  the three  month  period ended
June 30, 1997 are not necessarily  indicative  of the results that may
be  expected  for  the  year  ended  March   31,   1998.  For  further
information,   refer  to  the  consolidated  financial statements  and
footnotes thereto included in the Company's Annual Report on Form 10-K
for the year ended March 31, 1997.

2. Earnings Per Share

Net  Income  per  share is  based upon  the weighted average number of
shares outstanding, adjusted for the dilutive  effect of stock options
and warrants.

3. Finance Receivables

Finance receivables consist of consumer automobile finance installment
contracts and are detailed as follows:

<TABLE>
   <S>                                       <C>
    Finance receivables, gross contract       $40,772,750
    Less: Unearned interest                    (8,909,306)
                                             -------------
                                               31,863,444
    Nonrefundable dealer reserves              (3,516,869)
    Allowance for credit losses                (1,285,613)
                                             -------------
    Finance receivables, net                  $27,060,962
                                             =============
</TABLE>

The  terms  of  the  receivables  range from 6 to 60 months and bear a
weighted average effective interest rate of 25%.

<PAGE> 7

4. Line of Credit

Effective July 1, 1997  the  Company  successfully  renegotiated  its
credit facility (the Line) with BA Business Credit. Maximum available
borrowings  under  the  Line  were  increased  from  $25  million  to
$30 million and  the  expiration  date was extended to June 30, 2000.
Borrowings under the Line bear  interest at the Bank of America prime
rate plus 0.50%. The Company also has  several  LIBOR pricing options
as alternatives to  the prime  rate pricing option.  Borrowings under
the  Line  are  collateralized  by  all  of  the  assets  of Nicholas
Financial, Inc. and the unconditional guarantee of it's subsidiaries,
Canadian parent and Peter L. Vosotas the majority shareholder.


5. Notes Payable - Related Party

Notes payable - related party are summarized as follows at June 30:

<TABLE>
   <S>                                            <C>
    Notes payable, unsecured, with interest at
    varying  rates  up  to  12%, quarterly and
    semiannual  interest  payments and various
    principal payments due through  June 2000,
    subordinated  to  the  Line. The notes are
    convertible at  the option  of the holder,
    into common shares at prices from $2.00 to
    $2.75 per share.                               $1,500,000

    Notes payable, unsecured  interest at 12%,
    quarterly interest  due  through May 1998,
    at  which  time  the  entire  balance  and
    unpaid interest is  due,  subordinated  to
    the line.                                         218,841
                                                       
    Note payable, unsecured, interest at  12%,
    quarterly  interest  payments  due through
    August  1997,   at  which  time the entire
    principal  balance  and unpaid interest is 
    due.                                               22,754
                                                  ------------
                                                   $1,741,595

</TABLE>
<PAGE> 8

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

   Consolidated net income increased for the three  month  period
ended June 30, 1997 to $216,546 from $206,456 for the three month
period  ended June 30, 1996. Earnings were favorably impacted  by
an  increase  in  the outstanding loan portfolio coupled  with  a
marginal  improvement  in the cost of funds.  However,  increased
operating  expenses and an increase in the provision  for  credit
losses  as  compared to the period ended June 30, 1996, primarily
offset  the items that favorably impacted earnings. The Company's
NDS  subsidiary did not contribute significantly to  consolidated
operations in the three month periods ended June 30, 1997,  1996,
respectively.

<TABLE>
<CAPTION>
                                         Three Months Ended June 30,
                                             1997            1996
                                        --------------   -------------
<S>                                     <C>              <C>
 Average Net Finance Receivables (1)     $31,719,569      $22,332,463

 Average Indebtedness (2)                 20,277,855       15,479,596

 Total Interest Revenues                   1,691,808        1,348,064

 Interest Expense                            499,234          394,630

 Net Interest Income                       1,192,574          953,434

 Gross Portfolio Yield (3)                    21.33%           24.15%

 Average Cost of Borrowed Funds (2)            9.85%           10.20%

 Net Interest Spread (4)                      11.48%           13.95%

 Net Portfolio Yield (3)                      15.04%           17.08%

 Net Charge-Off Percentage (5)                 8.46%           10.81%

</TABLE>

(1) Average  net  finance receivables represents the  average  of
    net  finance receivables throughout the period.  Net  finance
    receivables  represents gross finance  receivables  less  any
    unearned finance charges related to those receivables.

(2) Average   indebtedness  represents  the  average  outstanding
    borrowings  under  the  Line  of Credit  and  notes  payable-
    related  party.   Average cost of borrowed  funds  represents
    interest expense as a percentage of average indebtedness.

(3) Gross  portfolio  yield  represents  total  revenues   as   a
    percentage  of  average finance receivables.   Net  portfolio
    yield  represents  net interest income  as  a  percentage  of
    average finance receivables.

(4) Net  interest  spread  represents the gross  portfolio  yield
    less the average cost of borrowed funds.

(5) Net  charge-off percentage represents net charge-offs divided
    by  average net finance receivables outstanding   during  the
    period.

<PAGE> 9

Three  months ended June 30, 1997 compared to three months  ended
June 30, 1996


Interest Income and Loan Portfolio

       Interest  revenue increased 25% to $1.7  million  for  the
period  ended  June 30, 1997, from $1.3 million  for  the  period
ended  June 30, 1996. The net finance receivable balance  totaled
$27.1 million at June 30, 1997, an increase of 38% from the $19.6
million  at  June 30, 1996. The gross finance receivable  balance
increased  38%  to  $40.8 million at June  30,  1997  from  $29.6
million  at  June  30, 1996. The primary reason interest  revenue
increased  was  the  increase in the outstanding  loan  portfolio
offset  in  part by a decrease in the gross portfolio yield.  The
gross  portfolio yield decreased from 24.15% for the period ended
June  30, 1996 to 21.33% for the period ended June 30, 1997. This
decrease  was  caused  by the fact that for  contracts  purchased
during  the  last  two  quarters,  the  Company,  has  chosen  to
reclassify  a  larger portion of future unearned finance  charges
(at  the  time  the contract was purchased)  to the  reserve  for
credit  losses  as  compared to previous  quarters.  The  primary
reason that net finance receivables increased was the opening  of
two additional offices.

Computer Software Business

  Sales for the period ended June 30, 1997 were $109,481 compared
to $113,711 for the period ended June 30, 1996, a decrease of 4%.
This   decrease   was  primarily  due  to  a  decrease   in   new
installations during the three month period ended June 30, 1997.

Operating Expenses

       Operating expenses, excluding provision for credit losses,
stock  compensation  expense and interest expense,  increased  to
$813,682 for the period ended June 30, 1997 from $650,564 for the
period  ended  June 30, 1996. This increase of 25% was  primarily
attributable   to  the opening of two additional  branches  which
included  additional  staffing costs,  depreciation  and  related
expenses.

Interest Expense

      Interest expense increased to $499,234 for the period ended
June  30, 1997 as compared to $394,630 for the period ended  June
30,  1996.  This  increase  was due to  an  increase  in  average
outstanding borrowings from $15.5 million to $20.3 million during
the  comparable periods. The impact of this increase was  offset,
in part by a decrease in  the average cost of funds borrowed from 
10.20% for  the  period  ended June 30, 1996 as compared to 9.85%
for the period ended June 30, 1997.

Analysis of Credit Losses

   Because of the nature of the borrowers under the Contracts and
its  direct  consumer  loan program, the  Company  considers  the
establishment  of  adequate reserves  for  credit  losses  to  be
imperative.   The Company batches its Contracts  into  pools  for
purposes  of  establishing reserves for losses.  Each  such  pool
consists of the loans processed by a Company branch office during
a fiscal quarter.  The average pool consists of 71 Contracts with
an  aggregate initial principal amount of approximately $513,000.
As of June 30, 1997, the Company had 120 active pools.

   The  Company  pools  Contracts according  to  branch  location
because  the  branches  purchase Contracts in  different  markets
located  in  the  State  of Florida and Georgia.   All  Contracts
purchased  by a branch during a fiscal quarter comprise  a  pool.
This  method of pooling by branch and quarter allows the  Company
to  evaluate  the  different markets where the branches  operate.
The pools also allow the Company to evaluate the different levels
of  customer income, stability, credit history, and the types  of
automobiles purchased in each market.

   A pool retains an amount equal to 100% of the discount into  a
reserve  for  credit losses. In situations where the discount  is
determined  to  be  insufficient to absorb all  potential  losses
associated  with  the pool, a portion of future  unearned  income
associated with that specific pool will be added to the  reserves
for   credit  losses  until  total  reserves  have  reached   the
appropriate level.  If the reserve for credit losses is exhausted
for a pool which is not fully liquidated, then a charge to income
will  be  used to reestablish the reserves.  If a pool  is  fully
liquidated  and  has any remaining reserves, the excess  reserves
are recognized as income.

<PAGE> 10

   In analyzing a pool, the Company considers the performance  of
prior  pools originated by the branch office, the performance  of
prior  Contracts purchased from the dealers whose  Contracts  are
included  in the current pool, the credit rating of the borrowers
under  the Contracts in the pool, and current market and economic
conditions.   Each pool is analyzed monthly to determine  if  the
loss reserves are adequate, and adjustments are made if they  are
determined to be necessary.  As of June 30, 1997, the Company had
established  reserves for losses on Contracts of  $4,751,769,  or
15% of net outstanding receivables.

   Because of the small number of direct consumer loans currently
outstanding, a reserve for losses is established at the time  the
loan  is  made. As of June 30, 1997, the Company had  established
reserves  for  losses on direct loans of $50,713  or  7%  of  net
outstanding receivables. When the volume of such loans increases,
the  Company intends to utilize a pooling arrangement similar  to
that  used in connection with Contracts in establishing reserves.
As  of  June  30, 1997, the Company had not experienced  material
losses under its direct consumer loan program.

   The  provision for credit losses was $132,322 for  the  period
ended  June 30, 1997 as compared to $54,313 for the period  ended
June  30,  1996. This increase was due primarily to  management's
decision  to  increase the initial reserve  levels  on  contracts
purchased during the period ended June 30, 1997.

   The following tables present certain information regarding the
delinquency  rates  experienced by the Company  with  respect  to
Contracts and under its direct consumer loan program:

<TABLE>
<CAPTION>
                                     Three Months Ended Three Months Ended
                                     June 30, 1997             June 30, 1996
                                  --------------------------------------------
<S>                            <C>    <C>      <C>       <C>    <C>     <C>
Contracts
Gross Balance Outstanding              $39,870,229               $28,889,689

                                    Dollar                    Dollar
Delinquencies                       Amount    Percent         Amount    Percent

30 to 59 days                   $1,485,071      3.72%     $1,244,020     4.94%
60 to 89 days                      303,133      0.76%        261,739     1.20%
90 + days                           62,144      0.16%         62,354     0.16%
                                -----------               -----------
Total Delinquencies             $1,850,348                $1,568,113

Total Delinquencies as a
percent of outstanding balance                  4.64%                    6.30%

Direct Loans
Net Balance Outstanding                  $764,032                   $558,400

Delinquencies

30 to 59 days                        1,728      0.23%        18,596      3.33%
60 to 89 days                          971      0.13%             0      0.00%
90 + days                              800      0.10%             0      0.00%
                                 ----------                ---------
Total Delinquencies                 $3,499                  $18,596

Total Delinquencies as a
percent of outstanding balance                  0.46%                    3.33%


</TABLE>
<PAGE> 11


Income Taxes

   The  provision for income taxes for the period ended June  30,
1997  increased  to $139,505 from $125,865 for the  period  ended
June  30,  1996. The Company's effective tax rate increased  from
37.87%  for  the  period ended June 30, 1996 to  39.18%  for  the
period  ended June 30, 1997. This increase was due to  a  greater
amount  of Canadian related expenses that are not deductible  for
U.S income taxes as compared to the period ended June 30, 1996.


Liquidity and Capital Resources

   The  Company's cash flows for the three months ended June  30,
1997 and June 30, 1996 are summarized as follows:

<TABLE>
<CAPTION>
                                       Three months ended  Three months ended
                                          June 30, 1997       June 30, 1996
                                       ---------------------------------------
 <S>                                    <C>                 <C>
  Cash provided by (used in):
   Operating Activities -                 $   338,410        $   409,787
   Investing Activities -
    (primarily purchase of Contracts)      (1,301,253)        (1,311,331)

   Financing Activities                       935,500            730,686
  Net  decrease  in  cash                     (27,343)          (170,858)

</TABLE>

      The  Company's  primary use of working capital  during  the
three  months ended June 30, 1997 was the funding of the purchase
of  Contracts.  The Contracts were financed substantially through
borrowings on the Company's Line of credit. The line of credit is
secured  primarily  by  Contracts, and available  borrowings  are
based  on  a percentage of qualifying Contracts. As of  June  30,
1997  the Company had approximately $6.4 million available  under
the  line of credit. Since inception, the Company has also funded
a  portion  of its working capital needs through cash flows  from
operating  activities. Net cash provided by operating  activities
totalled  $338,410 and $409,787 during the period ended June  30,
1997 and 1996, respectively.

           On  July  11,  1997  the Company entered  into  a  new
agreement with BA Business Credit Inc. to expand its credit  line
to $30 million, increase the percentage of contracts that qualify
for funding, and reduce the interest rate payable under the line.
The new agreement expires on June 30, 2000.

   The self-liquidating nature of installment Contracts and other
loans enables the Company to assume a higher debt-to-equity ratio
than  in  most businesses. The amount of debt the Company  incurs
from time to time under these financing mechanisms depends on the
Company's  need  for cash and it's ability to  borrow  under  the
terms of its line of credit. The Company believes that borrowings
available  under  the line of credit as well as  cash  flow  from
operations   and,  if  necessary,  the  issuance  of   additional
subordinated debt and or the sale of additional securities in the
capital  markets, will be sufficient to meet its short and  long-
term funding needs.

Future Expansion

      The  Company intends to continue its expansion through  the
purchase of additional Contracts and the expansion of its  direct
consumer loan program.  In order to increase the size of its loan
portfolio  of Contracts, it will be necessary for the Company  to
open  additional branch offices and increase the size of its Line
of Credit, either with BankAmerica or another lender.

      The  Company believes that opportunity for growth continues
to exist in the State of Florida and the State of Georgia and for
the  foreseeable  future  intends generally  to  concentrate  its
expansion activities primarily there.  The Company has identified
Jacksonville  and  Atlanta   as  areas  in  which  it  may   open
additional  branch offices during fiscal 1998.  In addition,  the
Company  is in the process of evaluating several markets  in  the
states  of  North  Carolina  and  South  Carolina   for  possible
expansion in the future.

<PAGE> 12


Forward-Looking Information

      This 10-QSB contains various forward-looking statements and
information   that   are  based  on  management's   beliefs   and
assumptions,  as  well  as  information  currently  available  to
management.   When used in this document, the words "anticipate,"
"estimate,"  "expect," and similar expressions  are  intended  to
identify   forward-looking  statements.   Although  the   Company
believes  that the expectations reflected in such forward-looking
statements  are  reasonable, it can give no assurance  that  such
expectations  will  prove  to be correct.   Such  statements  are
subject to certain risks, uncertainties and assumptions.   Should
one  or  more  of  these risks or uncertainties  materialize,  or
should underlying assumptions prove incorrect, actual results may
vary  materially from those anticipated, estimated  or  expected.
Among  the  key  factors that may have a direct  bearing  on  the
Company's operating results are fluctuations in the economy,  the
degree  and nature of competition, demand for consumer  financing
in  the markets served by the Company, the Company's products and
services,   increases  in  the  default  rates   experienced   on
Contracts,  adverse regulatory changes in the Company's  existing
and future markets, the Company's ability to expand its business,
including its ability to complete acquisitions and integrate  the
operations   of  acquired  businesses,  to  recruit  and   retain
qualified  employees, to expand into new markets and to  maintain
profit margins in the face of increased pricing competition.

<PAGE> 13
                   Part II - Other Information


Item 1.   Legal Proceedings - Not Applicable

Item 2.   Changes in Securities - Not Applicable

Item 3.   Defaults upon Senior Securities - None

Item 4.   Submission of Matters to a Vote of Security Holders -None

Item 5.   Other Information - Not Applicable

Item 6.   (a)  Exhibits - See exhibit index following the signature page.

          (b)  Reports on Form 8-K  - No reports on From 8-K were filed
               during the fiscal quarter ending June 30, 1997

<PAGE> 14
                                
                           SIGNATURES

   In  accordance with the requirements of the Securities Act  of
1934, the Registrant certifies that it has reasonable grounds  to
believe that it meets all of the requirements for filing on  Form
10-QSB  and authorized this Report to be signed on its behalf  by
the undersigned, in the City of Clearwater, State of Florida,  on
August 8, 1997.
                                
                                
                    NICHOLAS FINANCIAL, INC.
                          (Registrant)


  Date: August 8, 1997         /s/ Peter L. Vosotas
                               -------------------------
                               Peter L. Vosotas
                               Chairman, President, Chief Executive Officer
                               (Principal  Executive Officer)


  Date: August 8, 1997         /s/ Ralph T. Finkenbrink
                               --------------------------
                               Ralph T. Finkenbrink
                               (Principal  Financial Officer  and
                               Accounting Officer)

<PAGE> 15

                          EXHIBIT INDEX

    Exhibit Document

    11.1     Schedule  for  Computation  of  Per   Share   
             Earnings



<PAGE> 16


                    Nicholas Financial, Inc.
                          Exhibit 11.1

         Statement re: Computation of Per Share Earnings

<TABLE>
<CAPTION>

                                               Three months ended June 30,
                                                    1997          1996
                                               ----------------------------
   <S>                                        <C>              <C>
    Net income                                 $  216,546       $  206,456
                                                                 
    Weighted average number of common shares                     
    outstanding during the period               6,990,544        5,858,119

    Add: common equivalent shares determined                     
      using the "treasury stock" method                          
      representing shares issuable upon                          
      exercise of stock options and warrants            -          317,423
                                               -----------------------------
    Weighted average number of shares used                       
    in calculation                              6,990,544        6,175,542
                                               =============================
    Earnings Per Share                              $0.03            $0.03
                                               =============================
</TABLE>