SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                   Form 10-QSB


              Quarterly Report Pursuant to Section 13 or 15 (d) of
                      The Securities Exchange Act of 1934.



For the Quarter ended: September 30, 1996         Commission File No.   0-18096



                             MID-COAST BANCORP, INC.
-------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



              Delaware                                 01-0454232
------------------------------------      -------------------------------------
    (State or other jurisdiction                    (I.R.S. Employer
  of incorporation or organization)                Identification No.)


1768 Atlantic Highway, PO Box 589
Waldoboro, Maine                                              04572
----------------------------------------          -----------------------------
(Address of principal executive offices)                    (Zip Code)


Registrant's telephone number, including are code:  (207) 832-7521

     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  [ ]

     The number of shares  outstanding  of each of the  registrant's  classes of
common stock, as of September 30, 1996, is 230,086.


                                  Page 1 of 16.


<PAGE>  1


                             MID-COAST BANCORP, INC.


                                      Index


<TABLE>
<CAPTION>
                                                                                        Page
                                                                                        ----

<S>       <S>                                                                            <C>
PART I    FINANCIAL INFORMATION
Item 1:   Consolidated Balance Sheets of Mid-Coast Bancorp, Inc. (Unaudited),
          at September 30, 1996 and March 31, 1996.....................................   3

          Consolidated Statements of Operations of Mid-Coast Bancorp, Inc.
          (Unaudited), Three Months Ended September 30, 1996 and 1995 and
          Six Months Ended September 30, 1996 and 1995.................................   5

          Consolidated Statement of Changes in Stockholders' Equity of
          Mid-Coast Bancorp, Inc. (Unaudited) for the period April 1, 1995
          to September 30, 1996........................................................   6

          Consolidated Statements of Cash Flows of Mid-Coast Bancorp, Inc.
          (Unaudited), for the Six Months Ended September 30, 1996 and 1995............   7

          Notes to the Consolidated Financial Statements (Unaudited)...................   8

Item 2:   Management's Discussion and Analysis of Financial Condition and
          Results of Operations........................................................   9

PART II   OTHER INFORMATION............................................................  15

SIGNATURES.............................................................................  16
</TABLE>


<PAGE>  2


                             MID-COAST BANCORP, INC.

                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                    ASSETS                    September 30, 1996     March 31,1996
                                                              ------------------     -------------

<S>                                                              <C>                 <C>
Cash and due from banks                                          $  1,230,773        $    297,198
Interest bearing deposits                                              70,046             805,853
Federal funds sold                                                    875,000           1,625,000
                                                                 --------------------------------

      Cash and cash equivalents                                     2,175,819           2,728,051

Time deposits                                                         596,000           1,780,101
Investments available for sale, at market                           2,595,389             528,673
Held to maturity investment securities
  (Market value of $2,314,583 at September 30, 1996
   and $3,861,576 at March 31, 1996)                                2,352,238           3,904,862
Held to maturity mortgage backed securities
  (Market value of $189,990 at September 30, 1996
   and $219,775 at March 31, 1996)                                    190,417             218,323
Loans held for sale                                                   124,000             559,079

Loans                                                              46,127,942          42,838,169
  Less:  Allowance for loan losses                                    276,663             221,356
         Deferred loan fees                                           126,439             151,254
                                                                 --------------------------------
                                                                   45,724,840          42,465,559

Bank premises and equipment, net                                    1,466,965           1,386,589

Other Assets:
Accrued interest receivable:
  Loans                                                               250,747             244,963
  Time deposits/investment                                             72,282              68,447
  Mortgage backed securities                                            5,043               1,181
Income taxes receivable                                                38,761              60,220
Deferred income taxes                                                  92,974              94,000
Prepaid expenses and other assets                                     126,031              97,881
Real estate owned                                                     144,492             224,137
                                                                 --------------------------------
 
      Total other assets                                              730,330             790,829
                                                                 --------------------------------

      Total assets                                               $ 55,955,998        $ 54,362,066
                                                                 ================================
</TABLE>


See accompanying notes.


<PAGE>  3


                             MID-COAST BANCORP, INC.
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                              September 30, 1996     March 31, 1996
                                                              ------------------     --------------

<S>                                                              <C>                 <C>
Liabilities:
  Deposits:
    Demand deposits                                              $  2,480,284        $  1,802,239
    NOW accounts                                                    3,684,284           3,111,931
    Savings                                                         4,901,593           4,645,035
    Money market deposit accounts                                   5,004,779           4,740,543
    Certificates of deposit                                        26,578,958          27,517,154
                                                                 --------------------------------

      Total deposits                                               42,649,898          41,816,902


Advances from the Federal Home Loan Bank                            7,940,000           7,465,000
Accrued expenses and other liabilities                                451,402             154,087
                                                                 --------------------------------

      Total liabilities                                            51,041,300          49,435,989


Stockholders' equity:
  Preferred stock, $1 par value, 500,000 shares
   authorized; none issued or outstanding
  Common stock, $1 par value, 1,500,000 shares
   authorized; 230,086 shares issued and outstanding,                 230,086             229,031
   (229,031 at March 31, 1996)
  Paid-in capital                                                   1,457,455           1,448,282
  Unrealized gains on available for sale
   securities, net of taxes                                             1,993                   -
  Retained earnings                                                 3,225,164           3,248,764
                                                                 --------------------------------

      Total stockholders' equity                                    4,914,698           4,926,077
                                                                 --------------------------------

      Total liabilities and stockholders' equity                 $ 55,955,998        $ 54,362,066
                                                                 ================================
</TABLE>


See accompanying notes.


<PAGE>  4


                             MID-COAST BANCORP, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                            Three Months Ended              Six Months Ended
                                                               September 30                   September 30
                                                       ---------------------------    ---------------------------
                                                           1996            1995           1996            1995
                                                       -----------     -----------    -----------     -----------

<S>                                                    <C>             <C>            <C>             <C>
Interest income:
  Interest on loans                                    $ 1,027,753     $ 1,006,151    $ 2,039,118     $ 1,967,128
  Interest on investment securities                         65,950          44,154        120,405          93,992
  Interest on mortgage backed securities                    12,627           4,068         20,329           8,338
  Other                                                     30,729          52,646         81,647          91,467
                                                       ---------------------------------------------------------- 
      Total interest income                              1,137,059       1,107,019      2,261,499       2,160,925

Interest expense:
  Interest on deposits                                     485,647         496,281        976,936         944,876
  Interest on borrowed money                               117,938         143,456        222,485         286,101
                                                       ----------------------------------------------------------
      Total interest expense                               603,585         639,737      1,199,421       1,230,977
                                                       ---------------------------------------------------------- 

      Net interest income                                  533,474         467,282      1,062,078         929,948

Provision for losses on loans                               21,000           5,000         51,000          20,000
                                                       ----------------------------------------------------------

      Net interest income after provision
       for loan losses                                     512,474         462,282      1,011,078         909,948

Non interest income:
  Loan service and other loan fees                           9,408          10,028         21,915          17,805
  Gain on loans sold and held for sale                       8,258           7,208         16,826          11,733
  Other                                                     34,600          27,077         77,429          53,921
                                                       ----------------------------------------------------------
      Total non interest income                             52,266          44,313        116,170          83,459

Non interest expenses:
  Compensation of directors, officers and staff            155,762         167,702        322,528         311,407
  Building occupancy                                         9,115           7,650         19,551          15,318
  Repairs and maintenance                                    8,476           6,804         17,794          12,932
  Depreciation and amortization                             15,566          18,992         31,112          36,091
  Advertising                                               10,288           9,614         19,275          19,996
  Insurance and bonds (note 2)                             276,441          34,847        311,680          68,591
  Legal, audit and examinations                             15,655          11,327         29,383          21,724
  Taxes (other than income)                                 11,487          12,646         24,803          25,262
  Employee benefits                                         23,389          19,163         44,931          34,817
  Data processing                                           41,049          26,670         69,081          51,070
  Other                                                     80,823          72,878        157,221         139,107
  Real Estate Owned                                          7,990          18,253          9,041          21,726
  Loss on sale of real estate owned                              -               -              -          12,316
                                                       ----------------------------------------------------------
      Total non interest expenses                          656,041         406,546      1,056,400         770,357
                                                       ---------------------------------------------------------- 
Income (loss) before income taxes                          (91,301)        100,049         70,848         223,050
Income taxes                                               (16,917)         35,494         37,083          72,494
                                                       ----------------------------------------------------------
Net (loss) income                                      $   (74,384)    $    64,555    $    33,765     $   150,556
                                                       ==========================================================

Earnings (loss) per share                              $      (.32)    $       .28    $       .15     $       .66
                                                       ==========================================================
</TABLE>


See accompanying notes.


<PAGE>  5


            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (Unaudited)

               For the Period April 1, 1995 to September 30, 1996


<TABLE>
<CAPTION>
                                                                              Unrealized
                                                                             gains/losses
                                                                           on available for                       Total
                                                 Common       Paid-in      sale securities,     Retained      Stockholders'
                                                 Stock        Capital        net of taxes       Earnings         Equity
                                               ---------    -----------    ----------------    -----------    -------------

<S>                                            <C>          <C>                  <C>           <C>             <C>
Balance, April 1, 1995                         $ 217,084    $ 1,258,178              -         $ 3,247,334     $ 4,722,596

  Issuance of 275 shares of common stock 
   upon exercise of options                          275          1,862              -                   -           2,137
  Net income                                           -              -              -             150,556         150,556
  Dividends declared ($.23 per share)                  -              -              -             (49,929)        (49,929)
                                               ---------------------------------------------------------------------------

Balance, September 30, 1995                      217,359      1,260,040              -           3,347,961       4,825,360

  Issuance of 897 shares of common stock 
   upon exercise of options                          897          6,361              -                   -           7,258
  Issuance of 10,775 shares of common 
   stock as a 5% dividend                         10,775        181,881              -            (194,893)         (2,237)
  Net Income                                           -              -              -             152,891         152,891
  Dividends declared ($.25 per share)                  -              -              -             (57,195)        (57,195)
                                               ---------------------------------------------------------------------------

Balance, March 31, 1996                          229,031      1,448,282              -           3,248,764       4,926,077

  Issuance of 1,055 shares of common stock 
   upon exercise of options                        1,055          9,173              -                   -          10,228
  Net Income                                           -              -              -              33,765          33,765
  Net change in market value of investments 
   available for sale, net of taxes                    -              -          1,993                   -           1,993
  Cash dividends declared ($.25 per share)             -              -              -             (57,365)        (57,365)
                                               ---------------------------------------------------------------------------

Balance, September 30, 1996                    $ 230,086    $ 1,457,455          1,993         $ 3,225,164     $ 4,914,698
                                               ===========================================================================
</TABLE>


See accompanying notes.


<PAGE>  6


                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                   Six Months Ended
                                                                     September 30,
                                                             ----------------------------
                                                                1996             1995
                                                             -----------      -----------

<S>                                                          <C>              <C>
Cash flows from operating activities:
  Net income                                                 $    33,765      $   150,556
  Adjustments to reconcile net income to net cash
   provided (used) by operating activities:
    Depreciation, amortization, and accretion                      5,376           17,230
    Provisions for losses on loans                                51,000           35,000
    Gain on sale of loans                                        (16,826)         (11,733)
    Deferred fees                                                  6,837           18,753
    (Gain) loss on sale of real estate owned                        (629)          12,316
    Loans originated for sale                                   (681,790)        (837,917)
    Proceeds from sales of loans                               1,133,695          779,850
    Increase in other assets                                     (41,631)           3,458
    Change in income taxes receivable/payable                     21,459          (20,609)
    Increase (decrease) in other liabilities                     297,315          (46,744)
                                                             ----------------------------

      Net cash provided by operating activities                  808,571          100,160

Cash flows from investing activities:
  Loan originations and repayments, net                       (3,286,744)        (787,042)
  Net increase (decrease) in time deposits                     1,186,000         (602,710)
  Investment and mortgage-backed securities:
    Purchases                                                 (2,070,948)        (612,500)
    Proceeds from maturities and repayments                    1,579,966          923,754
  Purchases of property and equipment                           (111,488)        (156,275)
  Sale of real estate owned                                       81,525           11,575
                                                             ----------------------------

      Net cash used by investing activities                   (2,621,662)      (1,223,198)

Cash flows from financing activities:
  Net increase (decrease) in certificates of deposit            (938,196)         541,627
  Net increase in demand, NOW accounts, savings
   and money market deposit accounts                           1,771,192        2,864,142
  FHLB advances                                                4,050,000        1,250,000
  FHLB advances paid                                          (3,575,000)      (2,500,000)
  Dividends paid in cash                                         (57,365)         (49,929)
  Sale of common stock                                            10,228            2,137
                                                             ----------------------------

      Net cash provided by financing activities                1,260,859        2,107,977
                                                             ----------------------------

Net increase (decrease) in cash and cash equivalents            (552,232)         984,939

Cash and cash equivalents, at beginning of period              2,728,051        3,015,032
                                                             ----------------------------

Cash and cash equivalents, at end of period                  $ 2,175,819      $ 3,999,971
                                                             ============================
</TABLE>


See accompanying notes.


<PAGE>  7


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

                               September 30, 1996


1.       Financial Statements
         --------------------

         The accompanying consolidated financial statements include the accounts
         of  Mid-Coast  Bancorp,  Inc.  (the  "Company")  and  its  wholly-owned
         subsidiary,  The Waldoboro Bank, F.S.B.  (the "Bank").  The accounts of
         the Bank  include  its  wholly-owned  subsidiary,  The First  Waldoboro
         Corporation.  Such  consolidated  financial  statements  are unaudited.
         However, in the opinion of management,  all adjustments necessary for a
         fair  presentation of the consolidated  financial  statements have been
         included,  and all  such  adjustments  are of a  normal  and  recurring
         nature.

         Amounts presented in the consolidated  financial statements as of March
         31, 1996 were derived from audited consolidated financial statements.

2.       Insurance Fund Resolution
         -------------------------

         The resolution of the Savings  Insurance Fund (SAIF) and Bank Insurance
         Fund (BIF) has been  established by Congress.  Effective  September 30,
         1996,  Banks  insured  by the SAIF  will pay a one time  assessment  to
         recapitalize  SAIF. The one-time charge of $241,299 is reflected in the
         balance  sheet and  statement  of  operations  as of and for the period
         ended September 30, 1996.

3.       Investments Available For Sale
         ------------------------------

         If significant,  unrealized gains and losses, net of tax, on securities
         available for sale are reported as a net amount in a separate component
         of stockholders' equity until realized. If a decline in market value is
         considered other than temporary,  the loss is charged to net securities
         gains (losses).

4.       Dividends Paid
         --------------

         On October 15, 1996, the Company  declared a cash dividend of $0.26 per
         share  payable  on  December  31,  1996 to  shareholders  of  record on
         December 2, 1996.


<PAGE>  8


                     Management's Discussion and Analysis of

                  Financial Condition and Results of Operations


General
-------

         The financial condition and results of operations of Mid-Coast Bancorp,
Inc. (the "Holding Company") essentially reflect the operation of its subsidiary
The Waldoboro Bank,  F.S.B.  (the "Bank" or "Waldoboro").  The Holding Company's
results of operations in recent years reflect the Bank's  efforts to restructure
its balance sheet in response to the  fundamental  changes that have occurred in
the  regulatory,   economic  and   competitive   environment  in  which  savings
institutions operate.  Like most savings institutions,  Waldoboro's earnings are
primarily dependent upon its net interest income, which is determined by (i) the
difference   (known   as  the   interest   rate   spread)   between   yields  on
interest-earning assets and rates paid on interest-bearing  liabilities and (ii)
the relative amounts of interest-earning assets and interest-bearing liabilities
outstanding.

         The Bank and the entire savings institution  industry are significantly
affected by prevailing  economic  conditions as well as government  policies and
regulations concerning, among other things, monetary and fiscal affairs, housing
and financial institutions.  Deposit flows are influenced by a number of factors
including interest rates on money market funds and other competing  investments,
account maturities and levels of personal income and savings. Lending activities
are  influenced  by, among other  things,  the demand for and supply of housing,
conditions in the construction  industry and the availability and cost of funds,
and loan rewrites resulting from declining interest rates.  Sources of funds for
lending activities include deposits, loan payments, proceeds from sales of loans
and investments, investment returns and borrowings.

         Due to the relative  interest rate sensitivity of the Bank's assets and
liabilities, the cost of funds to the Bank (principally interest on deposits and
borrowings)  does not  reprice as fast as the yield on its  assets  (principally
interest  received on loans and  investments).  Accordingly,  sharp increases or
decreases in the general level of interest rates will have a significant  impact
on the Bank's interest rate spreads in the short term.

Financial Condition
-------------------

         Total assets  increased  $1,593,932 or 2.93% between March 31, 1996 and
September 30, 1996. Of this amount cash and cash equivalents  decreased $552,232
or 20.24%, investment securities and time deposits decreased $697,915 or 10.85%,
and loans  increased  $3,289,773 or 7.68%. As a result of the Bank's more active
role in the increased  solicitation  and  origination of consumer and commercial
loans, the volume of cash equivalents,  investment securities, and time deposits
have decreased in order to fund the increased loan volume.

         Total liabilities  increased $1,605,311 or 3.25% between March 31, 1996
and  September  30,  1996.  Increases  occurred  in  all  deposit  areas  except
Certificates  of Deposit which  decreased  $938,196 or 3.41%.  Advances from the
FHLB increased  $475,000.  The Bank's strategy  continues to focus on attracting
lower cost  deposits,  while reducing its cost of funds through a more effective
pricing structure on Certificates of Deposit.

         The  allowance  for loan losses  amounted to $276,663 at September  30,
1996, compared to $221,356 at March 31, 1996. The increase in allowance for loan
losses is primarily due to the current periodic  provision for loan losses.  The
Bank's  allowance  for loan losses as a percentage  of total loans and allowance
for loan losses as a percentage of  non-performing  loans was 0.60% and 191.47%,
respectively.

         At September 30, 1996 and March 31, 1996, loans  contractually past due
90 days or more  amounted  to  $58,477  and  $375,338  or 0.1% and 0.9% of loans
outstanding, respectively, at such dates. Non-accrual of interest on these loans
totalled  $42,901 at March 31, 1996 as compared  with  $1,911 at  September  30,
1996.  Management  does not believe  these loans  materially  affect the overall
quality of the Bank's loan portfolio.


<PAGE>  9


                              RESULTS OF OPERATIONS


Three Months Ended September 30, 1996 and 1995

Net Income
----------

         Mid-Coast  recorded a net loss for the three months ended September 30,
1996 of $74,384 or $0.32  cents per share  after  recording  a one-time  special
assessment of $241,299 to recapitalize  the Savings  Association  Insurance Fund
(see note 2).  Without the  assessment,  net income  would have been  $94,851 or
$0.41 cents per share for the quarter ended  September  30, 1996.  This compares
with a net income of $64,555 or $0.30 cents per share for the same period in the
previous fiscal year.

Interest Income
---------------

         Interest income increased  $30,040 or 2.71% for the three months period
ended September 30, 1996,  primarily due to increases in the average balances of
commercial  and  consumer  loans  which  increased  $2.2  million  or 43.09% and
$574,000  or  13.08%,  respectively.  Consumer  loans  consist  of home  equity,
installment  loans,  share loans, and student loans.  This increase is partially
offset by a decrease in mortgage  balances of $1.4 million or 4.01%  compared to
the same period in the previous fiscal year.

Interest Expense
----------------

         Total interest  expense for the three month period ended  September 30,
1996,  decreased  $36,152 or 5.65%.  This  decrease is primarily the result of a
decrease in the average cost of funds from 5.13% at September  30, 1995 compared
to 4.81% at  September  30,  1996.  The lower  average  cost of funds  primarily
resulted from the Bank's  strategy to lower the cost of Certificates of Deposit.
During the three month period,  the average rate paid on Certificates of Deposit
decreased 30 basis points from the same period in the previous fiscal year.

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

         Net interest  income,  before  provisions  for loan  losses,  increased
$66,192 or 14.17% for the quarter  ended  September  30, 1996 as compared to the
same quarter in the previous  fiscal year. This increase is primarily the result
of average  balance  increases in commercial and consumer loan and a decrease in
the average cost of funds on deposits and borrowings.

Provisions for Losses on Loans
------------------------------

         The  allowance for loan losses is  established  through a provision for
loan losses based on  management's  evaluation  of the risk inherent in its loan
portfolio and the general economy.  Such evaluation  considers  numerous factors
including general economic conditions,  loan portfolio compositions,  prior loss
experience,  the estimated  fair value of the  underlying  collateral  and other
factors  that  warrant  recognition  in  providing  for an  adequate  loan  loss
allowance.  The  Bank's  provision  for losses on loans  during the three  month
period ended  September 30, 1996,  increased to $21,000 as compared to $5,000 in
the comparable  period in the previous  fiscal year. The increased  provision is
primarily due to the relative increases is consumer and commercial loans.

Non-Interest Income
-------------------

         Total  non-interest  income for the three month period ended  September
30, 1996,  increased  $7,953 or 17.95%,  primarily as a result of increased fees
and charges particularly related to NOW accounts and overdraft fees.


<PAGE> 10


Other Expenses
--------------

         Total other expenses  increased  $249,495 or 61.37% for the three month
period ended  September 30, 1996, as compared to the same period in the previous
fiscal year. The increase is primarily due to the one-time assessment legislated
by Congress to recapitalize  the SAIF totally $241,299 and a $14,379 increase in
data processing  relating to the Bank's computer  conversion planned for January
1997.


<PAGE> 11


Six Months Ended September 30, 1996 and 1995

Net Income
----------

         Mid-Coast  reported  net  income of $33,765  for the six  months  ended
September 30, 1996,  compared to $150,556 for the six months ended September 30,
1995,  which  represents a decrease of $116,791.  The decrease is primarily  the
result of the  one-time  assessment  of $241,299,  which is the Bank's  portion,
legislated by Congress to recapitalize  the SAIF. Net income without the payment
of the  assessment  would have been  $203,000  or $0.88  cents per share for the
quarter ended  September 30, 1996.  This compares with net income of $150,556 or
$0.66 per share for the same period in the previous fiscal year. Included in net
income for the period ended  September 30, 1996 is a $100,574 or 4.65%  increase
in total interest income, a $31,556 or 2.56% decrease in total interest expense,
resulting  in an increase  in net  interest  income of $101,130 or 11.11%  after
provisions for loan losses.  During the period, the Bank recorded an increase of
$32,711 or 39.19% in total  other  non-interest  income as  compared to the same
period in the previous fiscal year. Total other expenses  increased  $286,043 or
37.13%,  primarily as a result of the one-time  assessment to  recapitalize  the
SAIF,  without the assessment  other  expenses  would have increased  $44,744 or
5.81%.

Interest Income
---------------

         Total  interest  income for the six months  ended  September  30, 1996,
increased  $100,574  or 4.65% as  compared  to the same  period in the  previous
fiscal year.  Interest on loans  increased  $71,990 or 3.66%,  primarily  due to
increases in the average balance of commercial and consumer  loans.  Interest on
investment securities and mortgage backed securities increased $26,413 or 28.10%
and  $11,991 or 143.81%  respectively,  primarily  due to general  increases  in
prevailing  market rates.  These increases are partially offset by a decrease of
$9,820 or 10.74% in miscellaneous  interest income primarily due to decreases in
federal funds and other interest earning deposits.

Interest Expense
----------------

         Total  interest  expense for the six month period ended  September  30,
1996  decreased  $31,556 or 2.56%  from the  comparable  period in the  previous
fiscal  year.  Interest  expense  on  deposits  increased  $32,060  or 3.39% and
interest on borrowed money decreased $63,616 or 22.24%. The increase in deposits
is primarily  affected by increases in  deposits,  particularly  in  transaction
account  which has reduced the average cost of funds 26 basis points as compared
to the same period in the previous fiscal year.

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

         Total net interest  income for the six months ended  September 30, 1996
increased $132,130 or 14.21%. This increase is primarily the result of increases
in the average  balances of commercial  and consumer loans and a decrease in the
average cost of funds on deposits and borrowings.

Provisions for Losses on Loans
------------------------------

         The Bank's  provision  for  losses on loans for the six  months  period
ended  September  30,  1996  increased  to $51,000 as compared to $20,000 in the
previous  fiscal  year.  The  provision  is deemed  appropriate  given the risks
associated with the Bank's increased volume in consumer and commercial loans.

Non-Interest Income
-------------------

         Non-interest  income  for the  six  months  ended  September  30,  1996
increased $32,711 or 39.19% compared to the comparable period in 1995. Increases
occurred in all categories of other income, with miscellaneous income increasing
$23,508 or 43.60%.  Miscellaneous  income is the  result of  increased  fees and
charges particularly related to NOW accounts and overdraft fees.


<PAGE> 12


Non-interest Expenses
---------------------

         Non-interest expenses for the six month period ended September 30, 1996
increased  $286,043  or 37.13% as compared to the same period in the last fiscal
year. The increase in other expenses is primarily due to the one-time assessment
of $241,299 required to recapitalize the SAIF. Additionally,  increases occurred
in data processing  relating to the Bank's computer conversion and miscellaneous
expenses  primarily  consisting of  shareholder  services.  Without the one-time
assessment, other expenses would have increased $44,744 or 5.81%.

Insurance of Deposits
---------------------

         The Bank is a member of the SAIF of the FDIC, and the Bank pays most of
its  deposit  insurance  assessments  to the SAIF of the  FDIC.  The  FDIC  also
maintains  another  insurance  fund,  the Bank  Insurance  Fund  ("BIF"),  which
primarily  insures  the  deposits  of  commercial  banks  and  savings  and loan
associations.  The SAIF also  insures the  deposits  acquired  by a  BIF-insured
institution from a SAIF-insured institution.

         Applicable law requires that both the SAIF and the BIF be recapitalized
to a ratio of 1.25% of reserves to deposits.  The BIF achieved the 1.25% reserve
ratio in May 1995, but the SAIF was not then expected to be recapitalized  until
after 2001. In recognition of the BIF's  achievement of the 1.25% reserve ratio,
the FDIC  reduced  the deposit  insurance  assessment  rates for  BIF-assessable
deposits. Effective January 1, 1996, the FDIC reduced the annual assessments for
BIF-insured institutions to the legal minimum of $2,000, except for institutions
that were not well  capitalized or that were assigned to the higher  supervisory
risk  categories.  The FDIC estimated that 92% of the  BIF-insured  institutions
would pay only the minimum annual assessment.

         In contrast, SAIF reserves had not grown as quickly as BIF reserves due
to a number of factors,  including the fact that a  significant  portion of SAIF
premiums had been and are currently  being used to make payments on bonds ("FICO
bonds") issued in the late 1980's by the Financing  Corporation to  recapitalize
the now  defunct  Federal  Savings  and Loan  Insurance  Corporation.  Given the
undercapitalized  status  of the  SAIF,  the FDIC  had  continued  the  range of
assessment rates of $0.23 to $0.31 per $100 of SAIF-assessable deposits.

         On September  30, 1996,  the Deposit  Funds  Insurance Act of 1996 (the
"1996 Act") was enacted into law, and it amended the Federal  Deposit  Insurance
Act in several  ways to  recapitalize  the SAIF and reduce the  disparity in the
assessment  rates for the BIF and the SAIF.  The 1996 Act authorized the FDIC to
impose a special assessment on all institutions with SAIF-assessable deposits in
the amount  necessary to recapitalize  the SAIF. As implemented by the FDIC, the
special assessment has been fixed,  subject to adjustment,  at 65.7 basis points
of an institution's SAIF-assessable deposits, and the special assessment will be
paid on November  27,  1996.  The special  assessment  is based on the amount of
SAIF-assessable  deposits held on March 31, 1995.  Based on the  foregoing,  the
special  SAIF  assessment  to be paid by the Bank on  November  27, 1996 will be
$241,299, and such amount has been accrued in the financial statements as of and
for the period ended September 30, 1996.



<PAGE> 13


Liquidity and Capital Resources
-------------------------------

          On September 30, 1996, the Holding Company's  stockholders' equity was
$4,914,698 or 8.78% of total assets compared to $4,926,077 or 9.06% at March 31,
1996.

         The Office of Thrift Supervision ("OTS") requires savings  institutions
such  as  Waldoboro  to  maintain  a  specified  ratio  of cash  and  short-term
investment   securities  to  new  withdrawable   deposits  and  borrowings  with
maturities of one year or less. This minimum liquidity ratio,  currently 5%, may
vary from time to time,  depending upon general economic  conditions and deposit
flows.  As a part  of its  asset/liability  management  program,  Waldoboro  has
historically maintained liquidity in excess of regulatory requirements to better
match its short-term  liabilities.  At September 30, 1996, Waldoboro's liquidity
ratio was approximately 14.67% compared to 14.45% at September 30, 1995.

         The minimum capital standards set by the OTS have three components: (1)
tangible  capital;  (2) leverage  ratio or "core"  capital;  and (3)  risk-based
capital.  The tangible  capital  requirement  is 1.5% and the leverage  ratio or
"core" capital requirement is 3% of an institution's  adjusted total assets. The
risk-based capital  requirement is 8% of risk-weighted  assets. The amount of an
institution's  risk-weighted assets is determined by assigning a "risk-weighted"
value  to  each  of  the  institution's  assets.  Under  the  regulations,   the
"risk-weighted" of a particular type of assets depends upon the degree of credit
risk which is deemed to be associated with that type of asset.

         At September 30, 1996,  Waldoboro had tangible capital of $4,805,000 or
8.61% of adjusted  total  assets,  which exceeds the minimum  required  tangible
capital  and  leverage  ratio or  "core"  capital  requirements.  Waldoboro  had
risk-based capital of $5,082,000 or 15.46% of risk-weighted  assets at September
30, 1996.



<PAGE> 14


                            PART II OTHER INFORMATION



Item 1.           Legal Proceedings.
                  ------------------

                  There  was  no  material   litigation  pending  to  which  the
Registrant  was a party or to which the property of the  Registrant  was subject
during the quarter ended September 30, 1996.

Item 2.           Changes in Securities.
                  ----------------------

                  None.

Item 3.           Defaults Upon Senior Securities.
                  --------------------------------

                  None.

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

                  On July 18,  1996 at the  Annual  Meeting of  Shareholders  of
Mid-Coast,  Samuel Cohen,  Ronald E.  Dolloff,  and Lincoln O. Orff were elected
Directors each for a term of three years and until their  respective  successors
are appointed. The vote for each of the directors was as follows:

<TABLE>
<CAPTION>
                                      FOR          WITHHELD
                                    -------        --------

         <S>                        <C>              <C>
         Samuel Cohen               171,967          6,882
                                    -------          -----
         Ronald E. Dolloff          175,451          3,398
                                    -------          -----
         Lincoln O. Orff            175,451          3,398
                                    -------          -----
</TABLE>

         Waite W. Weston, Sharon Crowe, Lincoln Davis III, Maynard Prock, Wesley
Richardson,  and Robert W. Spear,  are  continuing as Directors  following  said
meeting.

         In  addition,  the  shareholders  also  voted to ratify  at the  Annual
Meeting the  appointment  of Baker Newman & Noyes as the  Company's  independent
auditors for the 1997 fiscal year.  The vote  ratifying the  appointment  of the
independent auditors was:

          178,096          FOR
          -------
              540          AGAINST
          -------
              213          ABSTAIN
          -------


Item 5.           Other Information.
                  ------------------

                  None.

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

                  (a)      Exhibits required by Item 601 of Regulation S-K.

                           None.

                  (b)      Reports on Form 8-K.

                           None.


<PAGE> 15


                                   SIGNATURES


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

                                         MID-COAST BANCORP, INC.


                                         /s/  Wesley   E. Richardson
                                         ---------------------------------------
                                              (Registrant)



Date   November 8, 1996                  /s/  Wesley E. Richardson
--------------------------------------------------------------------------------
                                              (Signature)
                                              Wesley E. Richardson
                                              President and Treasurer