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 MARCH 31, 1998
   [ ]  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 March 31, 1998

        Common Stock, no par value                     834,340

   Transitional Small Business Disclosure Format:    Yes______    No   X  

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY

                                      INDEX
                                                                         Page
                                                                       Number
   PART I - FINANCIAL INFORMATION

      Item 1.  Financial Statements  . . . . . . . . . . . . . . . . . .    1

               Consolidated Statements of Financial Condition at
               March 31, 1998 and December 31, 1997  . . . . . . . . . .    1

               Consolidated Statements of Income
               For the Three Months Ended March 31, 1998 and 1997  . . .    2

               Consolidated Statements of Cash Flows
               For the Three Months Ended March 31, 1998 and 1997  . . .    3

               Consolidated Statements of Stockholders' Equity
               For the Three Months Ended March 31, 1998 and 1997  . . .    4

               Notes to Consolidated Financial Statements  . . . . . . .    5

      Item 2.  Management's Discussion and Analysis of
               Financial Condition and Results of Operations . . . . . .    6


   PART II - OTHER INFORMATION

      Item 6.  Exhibits and Reports on Form 8-K  . . . . . . . . . . . .    9

   SIGNATURES    . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10

   <PAGE>

   PART I - FINANCIAL INFORMATION

   Item 1.  Financial Statements

               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                       March 31, 1998 and December 31,1997

                                                      March 31,  December 31,
                                                         1998         1997   
                                                    (Unaudited)
   ASSETS
   Cash and due from banks                         $ 2,290,914   $ 2,671,051 
   Federal funds sold                                5,103,000     7,994,000 
   Interest-bearing deposits                           204,829         4,185 
                                                   -----------   -----------
   Total cash and cash equivalents                   7,598,743   $10,669,236 
                                                   -----------   -----------
   Investments-Held to Maturity                      4,252,382     4,253,095 
   (fair value Mar 31, 1998: $4,287,287 
   and Dec 31, 1997: $4,298,356)
   Investments-Available for Sale                      892,778       874,406 

   Loans receivable                                 46,497,033    46,259,021 
   Less: Allowance for estimated loan losses          (504,325)     (624,740)
                                                   -----------   -----------
   Net loans receivable                             45,992,708    45,634,281 
                                                   -----------   -----------

   Office building and equipment, net                1,376,261     1,403,082 
   Other real estate owned                           1,679,000     1,774,489 
   Accrued interest & other assets                     502,073      495,108  
                                                   -----------   -----------
      Total assets                                 $62,293,945   $65,103,698 
                                                   ===========   ===========

   LIABILITIES AND STOCKHOLDERS' EQUITY
   LIABILITIES
   Deposits:
      Demand                                       $ 6,591,279   $ 7,296,264 
      Saving, NOW and other time                    49,242,065    51,191,361 
                                                   -----------   -----------
        Total deposits                              55,833,344    58,487,625 
                                                   -----------   -----------
   Accrued interest and other liabilities              542,302       752,772 
                                                   -----------   -----------
      Total liabilities                             56,375,646    59,240,398 
                                                   -----------   -----------
   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 deficit                                 (1,831,675)   (1,837,493)
   Accumulated other comprehensive income(loss)         28,575       (20,606)
                                                   -----------   -----------
      Total stockholders' equity                     5,918,299     5,863,300 
                                                   -----------   -----------

      Total liabilities and stockholders' equity   $62,293,945   $65,103,698 
                                                   ===========   ===========

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                   Three Months Ended March 31, 1998 and 1997
                                   (Unaudited)

                                                        Three Months Ended
                                                      March 31,     March 31,
                                                        1998          1997   
   Interest income:
      Interest and fees on loans                    $1,013,187       $498,970
      Interest on securities-taxable                    81,913        189,896
      Interest on federal funds sold                    51,013         63,391
      Interest on deposits in banks                      1,450          4,092
                                                    ----------       --------
          Total interest income                      1,147,563        756,349
                                                    ----------       --------
   Interest expense:
      Interest on deposits                             671,745        459,575
                                                    ----------       --------
          Total interest expense                       671,745        459,575
                                                    ----------       --------

          Net interest income                          475,818        296,774

   Provision for loan losses                             5,000              0
                                                    ----------       --------
          Net interest income after
            provision for loan losses                  470,818        296,774

   Other operating income:
      Gain (loss) on sale of securities                (31,435)        76,354
      Service charges on deposit accounts                8,689          5,362
      Other income                                      66,050         24,800
                                                    ----------       --------
          Total operating income                        43,304        106,516
                                                    ----------       --------
   Other operating expense:
      Salaries and employee benefits                   259,192        230,444
      Occupancy and equipment expense                   81,738         81,664
      Other expense                                    157,574         87,774
                                                    ----------       --------
          Total operating expense                      498,504        399,882
                                                    ----------       --------
   Income before income taxes                           15,618          3,408
                                                    ----------       --------
   Income taxes                                          9,800          1,251
                                                    ----------       --------
   Net income                                       $    5,818       $  2,157
                                                    ==========       ========
   Earnings per share:
      Basic                                         $     0.01       $   0.00
                                                    ==========       ========
      Diluted                                       $     0.01       $   0.00
                                                    ==========       ========

   Average shares outstanding                          834,340        834,340
                                                    ==========       ========

   <PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                   Three Months Ended March 31, 1998 and 1997
                                   (Unaudited)

                                                 Three Months Ended March 31,
                                                          1998          1997
   Cash flows from operating activities:
      Net income                                    $     5,818   $     2,157
        Adjustments to reconcile net income
        to net cash used in operating
        activities:
          Depreciation                                   38,980        42,809
          (Gain)loss on sale of investment securities    31,435       (73,354)
          Provision for loan losses                       5,000             0
          Charges to loan losses                       (125,415)            0
          Accretion/Amortization of securities net         (231)            0
        (Increase)decrease in assets:
          Interest receivable                            26,634       (45,691)
          Other real estate owned                        95,489             0
          Other assets                                  (33,599)          198
        Increase(decrease) in liabilities:
          Accrued interest                             (171,347)      (37,107)
          Other liabilities                             (39,123)        3,045
                                                    -----------   -----------
        Total adjustments                              (172,177)     (113,100)
                                                    -----------   -----------
      Net cash used in operating activities            (166,359)     (110,943)
                                                    -----------   -----------

   Cash flows from investing activities:
      Proceeds from sales of available for 
       sale securities                                   67,568       725,211
      Purchase of available for sale securities         (67,250)     (739,378)
      Proceeds from maturities of held to 
       maturity securities                                    0         4,702
      Purchases of premises and equipment               (12,159)      (42,309)

      Net increase in loans                            (238,012)   (6,792,401)
                                                    -----------   -----------
      Net cash used in investing activities            (249,853)   (6,844,175)
                                                    -----------   -----------
   Cash flows from financing activities:
      Net increase(decrease) in deposits             (2,654,281)    3,701,114
                                                    -----------   -----------
      Net cash provided by (used in)
       financing activities                          (2,654,281)    3,701,114
                                                    -----------   -----------
   Net decrease in cash and cash equivalents         (3,070,493)   (3,254,004)
   Cash and cash equivalents, beginning              10,669,236    14,937,881
                                                    -----------   -----------
   Cash and cash equivalents, ending                $ 7,598,743   $11,683,877
                                                    ===========   ===========

   Supplemental disclosure of cash flow information:
      Cash paid during the period for:
        Interest                                    $   698,379   $   423,282
                                                    ===========   ===========
        Income taxes                                $     9,800   $     1,276
                                                    ===========   ===========
   Supplemental schedule of noncash 
    investing activities:
      Net changes in unrealized gain(loss)
       on securities available for sale             $    49,181   $   (25,732)
                                                    ===========   ===========

   <PAGE>
                RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                   Three Months Ended March 31, 1998 and 1997
                                   (Unaudited)
                                                                 Accumulated
                                                                    Other
                                         Common      Retained    Comprehensive
                                         Stock       Earnings    Income (Loss)
   Balances
     December 31, 1996                  $7,721,399  $(1,879,126)   $ 25,732

   Net income-YTD 1997                                    2,157

   Other comprehensive income-change
     in unrealized loss on securities                               (25,732)
                                        ----------  -----------    --------
   Balances
     March 31, 1997                     $7,721,399  $(1,876,969)   $      0
                                        ==========  ===========     =======
   Balances
     December 31, 1997                  $7,721,399  $(1,837,493)   $(20,606)

   Net income-YTD 1998                                    5,818

   Other comprehensive income-change in
     unrealized gain on securities                                   49,181
                                        ----------  -----------    --------
   Balances
     March 31, 1998                     $7,721,399  $(1,831,675)    $28,575
                                        ==========  ===========     =======

   <PAGE>

               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             MARCH 31, 1998 and 1997
                                   (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 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-months ended March 31, 1998 are not necessarily indicative of the
   results that may be expected for the year ended December 31, 1998.  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, 1997.

   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 - 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. 
   Comparative statements of income and cash flows for the three months ended
   March 31, 1998 and March 31, 1997 have been presented.

   NOTE 4 - COMPREHENSIVE INCOME

   Other comprehensive income (loss) (consisting entirely of unrealized gain
   (loss) on available for sale securities) for the three months ended
   March 31, 1998 and 1997 amounted to $49,181 and ($25,732) respectively. 
   Comprehensive income (loss), which includes both net income and other
   comprehensive income, was $54,999 and ($23,575) for the years ended
   December 31, 1997 and 1996 respectively.

   Item 2.       Management's Discussion and Analysis

   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.

   The following is a discussion of the Company's financial condition and
   results of operations for the quarter ended March 31, 1998.

   Financial Condition

   Total Assets. Total assets of the Company as of March 31, 1998 were
   $62,293,945 compared to $65,103,698 as of December 31, 1997.

   Loans.  Loans prior to the allowance for estimated loan losses were
   $46,497,033 as of March 31, 1998,  compared to $46,259,021 as of  December
   31, 1997. The relatively flat loan growth for the first quarter of 1998
   was primarily the result of the repayment of several large construction
   loans in March 1998.

   At March 31, 1998, the mix of the loan portfolio included Commercial loans
   of $18,237,676 or 39.23% of total loans; Commercial Real Estate loans of
   $11,682,902 or 25.13% of total loans; Residential Real Estate Loans of
   $12,326,639 or 26.51% of total loans; and Consumer Loans of $4,249,816 or
   9.13% of total loans.

   Allowance for Loan Losses.  The allowance for estimated loan losses was
   $504,325 or 1.08% of gross loans on March 31, 1998.  The Bank evaluates
   the adequacy of the reserve for loan losses based on factors such as the
   local and national economy as well as an analysis of specific problem
   loans and loans on an aggregate basis.  The reserve for loan losses is
   maintained at a level management considers adequate to provide for
   potential future losses.  For additional information regarding the
   Company's allowance for loan losses, see "Results of Operations -
   Provision for Loan Losses" below.

   In the first quarter of 1998, the Bank charged $2,927 against the loan
   loss reserve.  The Bank also reduced Other Real Estate Owned by
   $122,488.50 and charged this amount against the loan loss reserve in order
   to reduce the value of Other Real Estate Owned to the appraised value as
   received on December 30, 1997.

   Cash and Cash Equivalents.  Cash and cash equivalents were $7,598,743 as
   of March 31, 1998 compared to $10,669,236 as of December 31, 1997, a
   decrease of $3,070,493.  Cash and cash equivalents represent cash
   maintained at the Bank and funds that the Bank and the Company have
   deposited in other financial institutions. The decrease was primarily in
   Federal Funds Sold, which are inter-bank funds with daily liquidity, and
   was the result of the funding of  loan growth at the Bank.

   Investment Securities.  The Bank's investment portfolio consists of (i)
   securities purchased with the intent to hold the securities until they
   mature and (ii) securities placed in the available for sale category which
   may be liquidated to provide cash for operating or financing purposes. 
   The securities held-to-maturity portfolio was $4,252,382 at March 31, 1998
   compared to $4,253,095 at December 31, 1997.  The securities available-
   for-sale portfolio was $892,778 at March 31, 1998 compared to $874,406 at
   December 31, 1997.

   Deposits.  As of March 31, 1998, total deposits were $55,833,344 compared
   to $58,487,625 at December 31, 1997.  The decrease in deposits resulted
   primarily from the loss of one large deposit that had been temporarily
   placed in the Bank over year-end awaiting an investment opportunity that
   occurred in January of 1998.

   Asset/Liability Management.  The principal function of asset/liability
   management is to manage the balance sheet mix, maturities, repricing
   characteristics and pricing components to provide an adequate and stable
   net interest margin with an acceptable level of risk over time and through
   interest rate cycles.

   Liquidity.  For banks, liquidity generally represents the ability to meet
   withdrawals from deposits and the funding of loans.  The assets that
   provide liquidity are cash, federal funds sold and short-term loans and
   securities.  Liquidity needs are influenced by economic conditions,
   interest rates and competition.  Although loan growth can negatively
   affect short-term liquidity, management believes the Bank will be able to
   meet liquidity demands as the Bank's loan growth continues.


   Results of Operations

   For the three-month period ended March 31, 1998, the Company reported net
   income of $5,818.  This compares to a profit of $2,157 in the first
   quarter of 1997.  The profit for the first quarter of 1998 was generated
   through improved operating results.  For the first quarter of last year, a
   gain on the sale of securities of $76,354 offset a $74,197 operating loss
   at the Bank.  In contrast, a $31,435 loss on the sale of securities for
   the first quarter of fiscal 1998 partially offset a $37,253 profit at the
   Bank.  Thus, the first quarter of 1998 shows an improvement in operating
   earnings of $111,450 over the comparable quarter in 1997.

   Net Interest Income.  Net interest income for the quarter ended March 31,
   1998 was $475,818 compared to $296,774 for the first quarter of 1997, an
   improvement of 60%.  The increase was due primarily to greater average
   outstanding balances in interest bearing assets, primarily loans.  Total
   interest income for the quarter ended March 31, 1998 increased by $391,214
   as compared with the first quarter of 1997, while total interest expense
   rose by $212,170.

   Provision for Loan Losses.  The provision for loan losses is based on
   management's evaluation of factors such as the local and national economy
   and the risk associated with the loans in the portfolio.  Management
   considers the adequacy of the allowance for estimated loan losses on a
   regular basis. 

   During the three-month period ended March 31, 1998, a provision of $5,000
   was made to the loan loss reserve in order to ensure that the loan loss
   reserve is maintained at adequate levels.

   Non-Interest Income and Expense.  Other operating income (excluding gains
   and losses on the sale of securities) was $74,739 for the first three
   months of 1998 compared to $30,162 for the same period in 1997, an
   increase of $44,577.

   Operating expenses were $498,504 for the quarter ended March 31, 1998
   compared to $399,882 for the first three months of 1997.  For the first
   quarter of 1998, payroll expense was $259,192 or 52% of total operating
   expenses and occupancy and equipment expense was $81,738 or 16% of
   total operating expenses.  Payroll and occupancy expense increased by
   $28,822 over the same period in 1997.  Other expense increased by $69,800
   from the first quarter of 1997.

   Item 6.  Exhibits and Reports on Form 8-K

        a.   Exhibits

        10.1 Ridgestone Financial Services, Inc. 1996 Stock Option Plan, as
             amended [incorporated by reference to Exhibit 4.1 to Ridgestone
             Financial Services, Inc.'s Registration Statement on Form S-8
             (Registration No. 333-52323)]

        10.2 Form of Stock Option Agreement used in conjunction with the
             Ridgestone Financial Services, Inc. 1996 Stock Option Plan, as
             amended [incorporated by reference to Exhibit 4.2 to Ridgestone
             Financial Services, Inc.'s Registration Statement on Form S-8
             (Registration No. 333-52323)]

        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 March 31, 1998.

   <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: May 15, 1998            /s/  Paul E. Menzel
                                      Paul E. Menzel
                                      President

   Date: May 15, 1998            /s/  William R. Hayes
                                      William R. Hayes
                                      Vice President and Treasurer


   <PAGE>
                                  EXHIBIT INDEX

   Exhibit Number

        10.1      Ridgestone Financial Services, Inc. 1996 Stock Option Plan,
                  as amended [incorporated by reference to Exhibit 4.1 to
                  Ridgestone Financial Services, Inc.'s Registration
                  Statement on Form S-8 (Registration No. 333-52323)]

        10.2      Form of Stock Option Agreement used in conjunction with the
                  Ridgestone Financial Services, Inc. 1996 Stock Option Plan,
                  as amended [incorporated by reference to Exhibit 4.2 to
                  Ridgestone Financial Services, Inc.'s Registration
                  Statement on Form S-8 (Registration No. 333-52323)]

        27        Financial Data Schedule
                  (EDGAR version only)