U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


   [X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
   [ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO
        _________

   Commission file number 0-27984

                       Ridgestone Financial Services, Inc.
        (Exact name of small business issuer as specified in its charter)

              Wisconsin                                   39-1797151     
   (State or other jurisdiction of                   (I.R.S. Employer
   incorporation or organization)                    Identification No.)


                             13925 West North Avenue
                          Brookfield, Wisconsin  53005        
                    (Address of principal executive offices)

                                  414-789-1011        
                           (Issuer's telephone number)


   Check whether the issuer (1) filed all reports required to be filed by
   Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
   such shorter period that the registrant was required to file such
   reports), and (2) has been subject to such filing requirements for the
   past 90 days.  Yes   X       No______


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

        Class                         Outstanding as of September 30, 1996

   Common Stock, no par value                   834,340

   Transitional Small Business Disclosure Format:    Yes______    No   X  

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC., AND SUBSIDIARY

                                      INDEX

                                                                       Page  
   PART I  FINANCIAL INFORMATION                                       Number

        Item 1    Consolidated Financial Statements (Unaudited)

             Consolidated Balance Sheets at
             September 30, 1996 and December 31, 1995                       2

             Consolidated Statements of Income
             For the Three and Nine Months Ended September 30, 1996         3

             Consolidated Statement of Cash Flows
             For the Nine Months Ended September 30, 1996                   4

             Notes to Consolidated Financial Statements                     6

        Item 2    Management's Discussion and Analysis of
                  Financial Condition and Results of Operations             7


   PART II  OTHER INFORMATION

        Item 6    Exhibits and Reports on Form 8-K                         11


        SIGNATURES                                                         12

   <PAGE>
   PART I  FINANCIAL INFORMATION

        Item 1  Financial Statements

               RIDGESTONE FINANCIAL SERVICES, INC., AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                     September 30,  December 31,
                                         1996           1995
   ASSETS
   Cash and due from banks           $   980,793     $  527,132
   Federal funds sold                 18,162,000      5,627,000
   Interest-earning deposits             516,397      2,444,031
                                      ----------     ----------
   Total cash and cash equivalents    19,659,190      8,598,163
                                      ----------     ----------
   Investments-Held to Maturity        5,254,703              0
        (fair value at Sept. 30, 1996,
         $5,256,819)
   Investments-Available for Sale      1,075,149              0
   Loans receivable                    8,334,653        729,770
   Less: Allowance for estimated 
        loan losses                      (69,740)        (9,000)
                                      ----------     ----------
   Net loans receivable                8,264,913        720,770
                                      ----------     ----------
   Office building and equipment,
    net                                1,149,332      1,056,738
   Accrued interest & other assets       177,023         51,652
                                      ----------     ----------
        Total assets                 $35,580,310    $10,427,323
                                      ==========     ==========
   LIABILITIES AND STOCKHOLDERS'
    EQUITY
   LIABILITIES
   Deposits:
        Noninterest-bearing           $2,323,532     $1,492,249
        Interest-bearing              26,719,359      1,816,282
                                      ----------     ----------
          Total deposits              29,042,891      3,308,531
                                      ----------     ----------
   Other liabilities                     221,255          5,449
                                      ----------     ----------
        Total liabilities             29,264,146      3,313,980
                                      ----------     ----------
   STOCKHOLDERS' EQUITY
   Common stock, no par value:
    shares authorized 1,000,000;
    shares issued and outstanding 
    834,340                            7,721,399      7,721,399
   Retained earnings (deficit)        (1,411,462)      (608,056)
   Unrealized gain (loss) on AFS
    securities                             6,227              0
                                      ----------     ----------
        Total stockholders' equity     6,316,164      7,113,343
                                      ----------     ----------
        Total liabilities and 
         stockholders' equity        $35,580,310    $10,427,323
                                      ==========     ==========

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC., AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

                                     Three Months Ended  Nine Months Ended
                                     September 30, 1996  September 30, 1996


    Interest Income:
         Interest and fees on loans       $ 148,730            $ 290,686
         Interest on securities              84,519              115,325
         Interest on federal funds
          sold                              216,677              468,485
         Interest on deposits in
          banks                               3,885               26,342
                                            -------              -------
              Total interest income         453,811              900,838
                                            -------              -------
    Interest expense:
         Interest on deposits               329,631              586,680
                                            -------              -------
              Total interest
               expense                      329,631              586,680
                                            -------              -------

              Net interest income           124,180              314,158

    Provision for loan losses:               30,000               60,740
                                             ------              -------
         Net interest income after
          provision for loan losses          94,180              253,418
    Non-interest income:
         Loan fees                                0                    0
         Service charges on deposit
          accts.                              2,621                6,004
         Miscellaneous                       18,036               56,026
                                            -------              -------
              Total operating
               income                        20,657               62,030
                                            -------              -------
    Non-interest expense:
         Salaries and employee              165,349              504,541
          benefits
         Occupancy and equipment
          exp.                               56,610              211,264
         Other expense                      140,082              402,140
         Pre-opening expense                      0                    0
                                            -------            ---------
              Total operating                      
               expense                      362,041            1,117,945
                                            -------            ---------

    Income before income taxes             (247,204)            (802,497)
                                            -------             --------

    Income taxes                                  0                  909

                                            -------             --------
    Net income (loss)                     $(247,204)           $(803,406)
                                           ========             ========

    Income (loss) per share                  $(0.30)              $(0.96)
                                              =====                =====

    Average shares outstanding              834,340              834,340

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC., AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                    Nine Months Ended
                                                    September 30, 1996 
   Cash Flows From Operating Activities:
     Net income (loss)                               $  (803,406)
          Adjustments to reconcile net loss to
            net cash used in operating activities:
          Depreciation                                   134,751
          Amortization of premiums (accretion of
            discounts) on securities, net                   (245)
          Provision for loan losses                       60,740
          Amortization of organizational costs             1,590
          (Increase) decrease in assets:
             Interest receivable                        (130,082)
             Other assets                                  3,122
          Increase (decrease) in liabilities:
             Accrued interest                            209,436
             Other liabilities                             6,369
                                                        --------
          Total adjustments                              285,681
                                                        --------
     Net cash provided (used) by operating
      activities                                        (517,725)
                                                        --------
   Cash Flows From Investing Activities:
     Purchase of securities held to maturity          (5,255,361)
     Purchase of securities available for sale        (2,310,936)
     Proceeds from maturity of available for sale
      securities                                       1,242,917

     Net loans originated                             (7,604,883)  
     Purchases of premises and equipment                (227,345)
                                                      ----------
     Net cash (used in) investing activities         (14,155,608)
                                                      ----------
   Cash Flows From Financing Activities:
     Net increase in deposits                         25,734,360
     Proceeds from notes payable                               0
                                                      ----------
     Net cash provided by financing activities        25,734,360
                                                      ----------
   Net increase in cash and cash equivalents          11,061,027
   Cash and cash equivalents, beginning of period      8,598,163
                                                      ----------
   Cash and cash equivalents, end of period          $19,659,190
                                                      ==========

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC., AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                     Nine Months Ended
                                                     September 30, 1996
   Supplemental disclosure of cash flow
      information:
     Cash paid during the period for:
          Interest                                     $ 377,534
                                                        --------
          Income taxes                                $       25
                                                        --------

   Supplemental schedule of noncash investing
    activities:
   Net unrealized losses on securities available
    for sale                                            $  6,227
                                                         -------

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC., AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   (Unaudited)

   NOTE 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 and with the instructions to
   Form 10-QSB.  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 and nine-month periods ended September 30, 1996 are not
   necessarily indicative of the results that may be expected for the year
   ending December 31, 1996.  For further information, refer to the
   consolidated financial statements and footnotes thereto included in the
   Company's Annual Report on Form 10-KSB for the year ended December 31,
   1995.

   NOTE 2 - PRINCIPLES OF CONSOLIDATION

   The accompanying consolidated financial statements include the accounts of
   Ridgestone Financial Services, Inc., (the "Company") and its wholly owned
   subsidiary, Ridgestone Bank (the "Bank").  All significant intercompany
   accounts and transactions have been eliminated in consolidation.

   NOTE 3 - INITIAL PUBLIC OFFERING

   On November 30, 1995, the Company completed its initial public offering. 
   The Company issued 834,340 shares of common stock in the offering.

   NOTE 4 - COMPARATIVE DATA

   The Company was incorporated in May of 1994, but its primary operating
   subsidiary, the Bank, did not commence operations until December 7, 1995. 
   Comparable statements of income and cash flows for the three months and
   nine months ended September 30, 1995 have not been presented since the
   Company did not have operations during that period.

   <PAGE>

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


   GENERAL

       Ridgestone Financial Services, Inc., (the "Company") was formed in
   May 1994 under the laws of the State of Wisconsin for the purpose of
   becoming the bank holding company of Ridgestone Bank (the "Bank").

       The Bank was capitalized on December 6, 1995 and commenced operation
   on December 7, 1995.  The Bank was organized as a Wisconsin chartered
   commercial bank with depository accounts insured by the Federal Deposit
   Insurance Corporation.  The Bank provides full service commercial and
   consumer banking services in Brookfield, Wisconsin, and adjacent
   communities.


   FINANCIAL CONDITION

       The Company has experienced significant growth since the Bank opened
   December 7, 1995.  Total assets of the Company increased by $25,152,987 or
   241.2% to $35,580,310 at September 30, 1996 from $10,427,323 at December
   31, 1995.  The growth primarily resulted from an increase in deposits
   received from customers.  

       Cash and cash equivalents increased $11,061,027 or 128.6% to
   $19,659,190 at September 30, 1996 from $8,598,163 at December 31, 1995. 
   The increase was primarily attributable to excess funds invested in
   overnight federal funds sold.

       Loans receivable increased by $7,604,883 or 1,042.1% to $8,334,653 at
   September 30, 1996 from $729,770 at December 31, 1995.  In addition, the
   Company, as of September 30, 1996, had $6.5 million in unused loan
   commitments, and $5.4 million in approved loan commitments that are
   expected to close within the next several months.  The Company believes
   that it has adequate capacity to fund those commitments.

       The allowance for estimated loan losses at September 30, 1996 was
   $69,740, representing 0.84% of gross loans outstanding.  Similarly, the
   allowance for loan losses at December 31, 1995 was $9,000 representing
   1.23% of gross outstanding loans.  Although management believes that the
   allowance for estimated loan losses at September 30, 1996 is adequate to
   absorb losses on existing loans, there can be no assurance that such
   losses will not exceed the estimated amounts or that the Company will not
   be required to make additional contributions to its loan loss reserve in
   the future.

       Accrued interest receivable on loans and other assets increased by
   $125,371 or 242.7% to $177,023 at September 30, 1996 from $51,652 at
   December 31, 1995.  The increase was primarily due to accrued interest
   receivable resulting from greater outstanding balances in loans.

       Deposits increased by $25,734,360 or 777.8% to $29,042,891 at
   September 30, 1996 from $3,308,531 at December 31, 1995.  The increase
   resulted from a $13,032,543 increase in certificates of deposit and a
   $12,701,817 increase in NOW, money market and other deposit accounts.

       Other liabilities increased by $215,806 or 3,960% to $221,255 at
   September 30, 1996 from $5,449 at December 31, 1995.  Other liabilities is
   comprised primarily of unpaid interest on deposits.

       The Company has announced that, based on strong loan and deposit
   growth, it has elected to accelerate plans to open a drive-through branch
   banking facility in Brookfield, Wisconsin, subject to obtaining necessary
   regulatory approvals.  The new facility will offer drive-through customer
   banking services and will house the Company's new telephone banking
   center.  The plans to accelerate opening of this facility are not expected
   to increase the cost of such facility, but may result in such expenses
   being realized earlier.

       The accumulated deficit at December 31, 1995 of $608,056 was
   comprised of pre-opening expenses and start-up expenses for the Bank,
   consisting primarily of salaries, marketing and supplies and the net loss
   incurred.  Accumulated deficit increased by $803,406 during the nine
   months ended September 30, 1996, which reflects the net loss for that
   period.


   RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
   1996

       The net loss for the three-month and nine-month periods ended
   September 30, 1996 was $247,203 and $803,406, respectively.  The Company
   expected losses during the pre-opening period and for the first several
   periods of operation.  The Company's goal is to be profitable for the year
   ended December 31, 1997.

       Interest income for the three-month and nine-month periods ended
   September 30, 1996 was $453,811 and $900,838, respectively.  The rise in
   interest income was attributable to greater outstanding balances in
   interest bearing deposits.

       Interest expense for the three-month and nine-month periods ended
   September 30, 1996 was $329,631 and $586,680, respectively.  The increase
   in interest expense was attributable to greater outstanding deposit
   balances.

       Other income for the three-month and nine-month periods ending
   September 30, 1996 was $20,657 and $62,030, respectively.  Other income
   consisted of income from depository service fees, loan fees, credit card
   fees and other miscellaneous fees.

       The main components of other expenses were salaries and benefits,
   occupancy, equipment, professional, data processing, insurance and other
   miscellaneous expenses.  Other expenses for the nine-month period ended
   September 30, 1996 were $1,117,945.


   NEW ACCOUNTING PRONOUNCEMENTS

   ACCOUNTING FOR MORTGAGE SERVICING RIGHTS:

       The Financial Accounting Standards Board ("FASB") has issued
   Statement of Financial Accounting Standards ("SFAS") No. 122, Accounting
   for Mortgage Servicing Rights.  SFAS No. 122 amends certain provisions of
   SFAS No. 65 to eliminate the accounting distinction between rights to
   service mortgage loans for others that are acquired through loan
   origination activities and those acquired through purchase transactions. 
   SFAS No. 122 provides that if the Company sells or securitizes mortgage
   loans and retains the mortgage servicing rights, the Company should
   allocate the total cost of mortgage loans to the mortgage servicing rights
   and the loans (without the mortgage servicing rights) based on their
   relative fair values.  Any costs allocated to mortgage servicing rights
   should be recognized as a separate asset.  SFAS No. 122 is effective for
   the Company's year ending December 31, 1996.  The Company believes
   adoption of SFAS No. 122 will not have a material effect on operations in
   1996.

   STOCK-BASED COMPENSATION:

       The FASB has issued SFAS No. 123, Accounting for Stock-Based
   Compensation.  SFAS No. 123 encourages, but does not require, the Company
   to account for stock-based compensation awards on the basis of fair value
   at the date the awards are granted.  The fair value of the award would be
   shown as an expense on the income statement.  However, the FASB also
   allows the Company to continue to measure compensation cost using the
   intrinsic value approach prescribed by APB No. 25.  If the Company elects
   to use the intrinsic value approach, it will not show an expense on the
   income statement.  However, it will be required to provide new footnote
   disclosures about the stock-based compensation and the Company must make
   pro forma disclosures of net income and earnings per share as if the fair
   value method of accounting had been applied.  SFAS No. 123 is effective
   for the Company's year ending December 31, 1996.

   ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND THE
   EXTINGUISHMENTS OF LIABILITIES:

       The FASB has issued SFAS No. 125, Accounting for Transfers and
   Servicing of Financial Assets and Extinguishments of Liabilities, which
   supersedes SFAS No. 76, SFAS No. 77 and SFAS No. 122.  SFAS No. 125
   provides accounting and reporting standards for transfer and servicing of
   financial assets and extinguishments of liabilities, which are
   based on consistent application of a financial-components approach that
   focuses on control.  SFAS No. 125 provides that, after a transfer of
   financial assets, an entity must recognize the financial servicing assets
   it controls and the liabilities it has incurred, derecognize financial
   assets when control has been surrendered, and derecognize liabilities when
   extinguished.  SFAS No. 125 provides consistent standards for
   distinguishing transfers of financial assets that are sales from transfers
   that are secured borrowings.  SFAS No. 125 is to be applied prospectively
   for transfers and servicing of financial assets and extinguishments of
   liabilities occurring after December 31, 1996.  Earlier or retroactive
   application is not permitted.

   Part II  OTHER INFORMATION

       Item 6  Exhibits and Reports on Form 8-K

             a.     Exhibits

                    10   Ridgestone Financial Services, Inc. 1996 Stock
                         Option Plan

                    27   Financial Data Schedule
                         (EDGAR version only)

             b.     Reports on Form 8-K

               The Company did not file a Current Report on Form 8-K during
               the quarter ended September 30, 1996


   <PAGE>
                                   SIGNATURES


          In accordance with the requirements of the Exchange Act, the
   registrant caused this report to be signed on its behalf by the
   undersigned, thereunto duly authorized.

                                   RIDGESTONE FINANCIAL SERVICES, INC.


   Date November 13, 1996          /s/ Paul E. Menzel          
                                   Paul E. Menzel
                                   President


   Date November 13, 1996          /s/ William R. Hayes    
                                   William R. Hayes
                                   Vice President and Treasurer

   <PAGE>
                                  EXHIBIT INDEX


       Exhibit Number

            10                Ridgestone Financial Services, Inc. 1996 Stock
                              Option Plan

            27                Financial Data Schedule
                              (EDGAR version only)