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, 1997           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 area code:  (207) 832-7521

      Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 12 months (or for such shorter 
period that the registrant was required to file such reports), and (2) has 
been subject to such filing requirements for the past 90 days.
Yes   X    No       
    -----     -----

      The number of shares outstanding of each of the registrant's classes 
of common stock, as of September 30, 1997, is 232,991.



                                Page 1 of 15.


                           MID-COAST BANCORP, INC.


                                    Index


PART I      FINANCIAL INFORMATION                                          Page
                                                                           ----

Item 1:     Consolidated Balance Sheets of Mid-Coast Bancorp, Inc.
            (Unaudited) at September 30, 1997 and March 31, 1997             3

            Consolidated Statements of Income of Mid-Coast Bancorp, Inc.
            (Unaudited), Three Months and Six Months Ended September 30,
            1997 and 1996                                                    5

            Consolidated Statement of Changes in Stockholders' Equity of 
            Mid-Coast Bancorp, Inc. (Unaudited) for the period April 1,
            1996 to September 30, 1997                                       6

            Consolidated Statements of Cash Flows of Mid-Coast Bancorp,
            Inc. (Unaudited), for the Six Months Ended September 30,
            1997 and 1996                                                    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                                               14

SIGNATURES                                                                  15


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

                                   ASSETS
                                   ------

<TABLE>
<CAPTION>
                                                        September 30, 1997    March 31, 1997
                                                        ------------------    --------------

<S>                                                        <C>                 <C>
Cash and due from banks                                    $ 1,117,193         $ 1,156,227
Interest bearing deposits                                      111,511             104,683
Federal funds sold                                           3,825,000           1,875,000
                                                           -------------------------------

      Cash and cash equivalents                              5,053,704           3,135,910

Time deposits                                                1,089,000           1,089,000
Investments available for sale, at market                    2,458,718           2,440,662
Held to maturity investment securities
 (Market value of $942,369 at September 30, 1997
 and $911,125 at March 31, 1997)                               949,391             949,109
Loans held for sale                                                  0              65,000

Loans                                                       50,223,342          49,394,455
  Less:  Allowance for loan losses                             321,918             295,457
         Deferred loan fees                                    103,335             119,966
                                                           -------------------------------

                                                            49,798,089          48,979,032

Bank premises and equipment, net                             1,541,863           1,580,290

Other assets:
Accrued interest receivable:
  Loans                                                        240,042             244,474
  Time deposits/investments                                     48,848              59,430
Deferred income taxes                                           94,100              98,000
Prepaid expenses and other assets                              199,520             192,638
Real estate owned                                                    0              91,823
                                                           -------------------------------

      Total other assets                                       582,510             686,365
                                                           -------------------------------

      Total assets                                         $61,473,275         $58,925,368
                                                           ===============================
</TABLE>

See accompanying notes to unaudited consolidated financial statements.


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

                    LIABILITIES AND STOCKHOLDERS' EQUITY
                    ------------------------------------

<TABLE>
<CAPTION>
                                                        September 30, 1997    March 31, 1997
                                                        ------------------    --------------

<S>                                                       <C>                 <C>
Liabilities:
  Deposits:
    Demand deposits                                        $ 2,130,492         $ 2,346,730
    NOW accounts                                             4,130,051           3,460,858
    Savings                                                  5,513,443           5,693,545
    Money market deposit accounts                            5,121,216           5,119,733
    Certificates of deposit                                 27,609,389          25,559,832
                                                           -------------------------------

      Total deposits                                        44,504,591          42,180,698


Advances from the Federal Home Loan Bank                    11,440,000          11,440,000
Accrued expenses and other liabilities                         251,335             229,125
                                                           -------------------------------

      Total liabilities                                     56,195,926          53,849,823


Stockholders' equity:
  Preferred stock, $1 par value, 500,000
   shares authorized; none issued
   or outstanding                                                    0                   0
  Common stock, $1 par value, 1,500,000
   shares authorized; 232,991
   shares issued and outstanding,                              232,991             231,439
   (231,439 at March 31, 1997)
  Paid-in capital                                            1,483,909           1,469,769
  Unrealized gains on available for sale securities,
   net of taxes                                                  7,433                   0
  Retained earnings                                          3,553,016           3,374,337
                                                           -------------------------------

      Total stockholders' equity                             5,277,349           5,075,545
                                                           -------------------------------

      Total liabilities and stockholders' equity           $61,473,275         $58,925,368
                                                           ===============================
</TABLE>


See accompanying notes to unaudited consolidated financial statements.


                           MID-COAST BANCORP, INC
                    CONSOLIDATION STATEMENT OF OPERATIONS
                                 (Unaudited)

<TABLE>
<CAPTION>
                                           Three Months Ended            Six Months Ended
                                             September 30,                September 30,
                                        ------------------------     ------------------------
                                           1997          1996           1997          1996

<S>                                     <C>           <C>            <C>           <C>
Interest income:
  Interest on loans                     $1,120,283    $1,027,753     $2,213,600    $2,039,118
  Interest on investment sec.               50,655        65,950        102,858       120,405
  Interest on mortgage backed sec.               0        12,627              0        20,329
  Other                                     51,518        30,729         85,769        81,647
                                        -----------------------------------------------------

      Total interest income              1,222,456     1,137,059      2,402,227     2,261,499

Interest expense:
  Interest on deposits                     482,762       485,647        954,006       976,936
  Interest on borrowed money               170,718       117,938        332,124       222,485
                                        -----------------------------------------------------

      Total interest expense               653,480       603,585      1,286,130     1,199,421
                                        -----------------------------------------------------

      Net interest income                  568,976       533,474      1,116,097     1,062,078
Provision for losses on loans               15,000        21,000         32,000        51,000
                                        -----------------------------------------------------

      Net interest income after
       provision for loan losses           553,976       512,474      1,084,097     1,011,078

Other income:
  Loan service and other loan fees          11,260         9,408         23,042        21,915
  Gain on loans sold\held for sale          16,132         8,258         17,482        16,826
  Other                                     50,592        34,600        103,309        77,429
                                        -----------------------------------------------------

      Total other income                    77,984        52,266        143,833       116,170

Other expenses:
  Compensation of directors, officers
   and staff                               189,762       155,762        363,597       322,528
  Building occupancy                         9,795         9,115         20,751        19,551
  Repairs and maintenance                    7,228         8,476         18,299        17,794
  Depreciation and amortization             42,278        15,566         91,399        31,112
  Advertising                               10,296        10,288         20,791        19,275
  Insurance and bonds                       18,597       276,441         37,221       311,680
  Legal, audit and examinations             16,042        15,655         33,313        29,383
  Taxes (other than income)                 12,292        11,487         25,491        24,803
  Employee benefits                         24,597        23,389         50,070        44,931
  Data processing                           16,284        41,049         27,247        69,081
  Other                                     97,077        80,823        178,895       157,221
  Real Estate Owned                              0         7,990          2,776         9,041
                                        -----------------------------------------------------

      Total other expenses                 444,248       656,041        869,850     1,056,400

Income\(loss) before income taxes          187,712       (91,301)       358,080        70,848
Income taxes                                61,357       (16,917)       119,207        37,083
                                        -----------------------------------------------------

Net income\(loss)                       $  126,355    $  (74,384)    $  238,873    $   33,765
                                        =====================================================

Earnings per share                      $     0.54    $    (0.32)    $     1.03    $     0.15
                                        =====================================================
</TABLE>


See accompanying notes


                           MID-COAST BANCORP, INC.
          CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                 (Unaudited)

             For the Period April 1, 1996 to September 30, 1997

<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, 1996                $229,031    $1,448,282              0         $3,248,764     $4,926,077

  Issuance of 1,055 shares
   of common stock upon
   exercise of options                   1,055         9,173              0                  0         10,228 
  Net income                                 0             0              0             33,765         33,765 
  Dividends declared
   ($.25 per share)                          0             0              0            (57,365)       (57,365)
                                      -----------------------------------------------------------------------

Balance, September 30, 1996            230,086     1,457,455              0          3,225,164      4,912,705 

  Issuance of 1,353 shares
   of common stock upon
   exercise of options                   1,353        12,314              0                  0         13,667 
  Net Income                                 0             0              0            209,010        209,010 
  Dividends declared
   ($.26 per share)                          0             0              0            (59,837)       (59,837)
                                      -----------------------------------------------------------------------

Balance, March 31, 1997                231,439     1,469,769              0          3,374,337      5,075,545 

  Issuance of 1,552 shares
   of common stock upon
   exercise of options                   1,552        14,140              0                  0         15,692 
  Net change in market value of
   investments available for sale,
   net of taxes                              0             0          7,433                  0          7,433
  Net Income                                 0             0              0            238,873        238,873
  Cash dividends declared
   ($.26 per share)                          0             0              0            (60,194)       (60,194)
                                      -----------------------------------------------------------------------

Balance, September 30, 1997           $232,991    $1,483,909         $7,433         $3,553,016     $5,277,349
                                      =======================================================================
</TABLE>


See accompanying notes to unaudited consolidated financial statements.


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

<TABLE>
<CAPTION>
                                                             Six Months Ended
                                                               September 30
                                                        --------------------------
                                                           1997           1996
                                                           ----           ----

<S>                                                     <C>            <C>
Cash flows from operating activities:
  Net income                                            $   238,873    $    33,765
  Adjustments to reconcile net income to net cash
   provided (used) by operating activities:
    Depreciation, amortization, and accretion                47,667          5,376
    Provisions for losses on loans                           32,000         51,000
    Gain on sale of loans                                   (17,482)       (16,826)
    Deferred fees                                               792          6,837
    Loss on sale of real estate owned                         2,151           (629)
    Loans originated for sale                            (1,091,567)      (681,790)
    Proceeds from sales of loans                          1,174,049      1,133,695
    Increase/decrease in other assets                         8,132        (41,631)
    Change in income taxes payable                           27,323         21,459
    Increase/decrease in other liabilities                   (5,113)       297,315
                                                        --------------------------

      Net cash provided by operating activities             416,825        808,571

Cash flows from investing activities:
  Loan originations and repayments, net                    (834,426)    (3,286,744)
  Net decrease in time deposits                                   0      1,186,000
  Investment and mortgage-backed securities:
    Purchases                                              (517,469)    (2,070,948)
    Proceeds from sales, maturities and repayments          510,000      1,579,966
  Purchases of property and equipment                       (26,199)      (111,488)
  Proceeds from sale of real estate owned                    89,672         81,525
                                                        --------------------------

      Net cash used by investing activities                (778,422)    (2,621,689)

Cash flows from financing activities:
  Net increase\(decrease) in certificates of deposit      2,049,557       (938,196)
  Net increase\(decrease) in demand, NOW, savings
   and money market deposit accounts                        274,336      1,771,192
  FHLB advances                                           2,000,000      4,050,000
  FHLB advances paid                                     (2,000,000)    (3,575,000)
  Dividends paid in cash                                    (60,194)       (57,365)
  Sale of common stock                                       15,692         10,228
                                                        --------------------------

      Net cash provided by financing activities           2,279,391      1,260,859
                                                        --------------------------

Net increase (decrease) in cash and cash equivalents      1,917,794       (552,259)

Cash and cash equivalents, at beginning of period         3,135,910      2,728,051
                                                        --------------------------

Cash and cash equivalents, at end of period             $ 5,053,704    $ 2,175,792
                                                        ==========================
</TABLE>


See accompanying notes to unaudited consolidated financial statements.


                           MID-COAST BANCORP, INC.
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)

                             September 30, 1997


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, 1997 were derived from audited consolidated financial statements.

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

      The disparity between the Savings Association Insurance Fund (SAIF) 
      and Bank Insurance Fund (BIF) was resolved by Congress, by requiring, 
      Banks insured by the SAIF to pay a one time assessment to recapitalize 
      SAIF, effective September 30, 1996.  Accordingly a 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.    Dividends Paid
      --------------

      The Board of Directors of Mid-Coast Bancorp, Inc. declared a cash 
      dividend of $.26 for each share of common stock, which is payable on 
      December 31, 1997 to shareholders of record on December 1, 1997.  

4.    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).


                   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 refinancing in response to 
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 $2,547,907 or 4.32% between March 31, 1997 and 
September 30, 1997.  Of this amount Federal Funds sold  increased $1,950,000 
or 104%,primarily due to the banks cash needs in an unsuccessful bid attempt 
to purchase branches within its market area.  Time Deposits and investment 
securities remained stable. Loans increased slightly to $50,223,342.

      Total liabilities increased $2,346,103 or 4.36% between March 31, 
1997, and September 30, 1997.  Increases in NOW Accounts and Certificates of 
Deposit of $669,193 or 19.34% and $2,049,557 or 8.02%, respectively, were 
partially offset by decreases in Demand deposits of $216,238 or 9.21% and 
Savings of $180,102 or 3.16%.  Advances from the Federal Home Loan Bank 
remained unchanged.

      The allowance for loan losses amounted to $321,918 at September 30, 
1997, compared to $295,457 at March 31, 1997.  The increase in allowance for 
loan losses is primarily due to the current periodic provision for loan 
losses.  At September 30, 1997 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 0.64% and 95.44% respectively.

      At September 30, 1997 and March 31, 1997 loans contractually past due 
90 days or more amounted to $337,296 and $145,466 or 0.67% and 0.29 % of 
loans outstanding, respectively at such dates.  Non-accrual of interest on 
these loans totaled $24,352 at September 30, 1997 as compared with $9,852 at 
March 31, 1997.  Since September 30, 1997 loans contractually past due 90 
days or more has been reduced to $280,745.  Non-accrual of interest since 
September 30, 1997 has been reduced to $21,304.  This total is represented 
by six loans and management does not believe these loans materially affect 
the overall quality of the Bank's loan portfolio.


                            RESULTS OF OPERATIONS

Three Months Ended September 30, 1997 and 1996

Net Income 

      Mid-Coast recorded net income for the three months ended September 30, 
1997 of $126,355 or 0.54 cents per share.  This compares with a net loss of 
$74,384 or $0.32 cents per share for the same period in the previous fiscal 
year.  The disparity between the Savings Association Insurance Fund (SAIF) 
and Bank Insurance Fund (BIF) was resolved by Congress, by requiring banks 
insured by the SAIF to pay a one time assessment to recapitalize SAIF, 
effective September 30, 1996.  Accordingly a 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.

Interest Income

      Interest income increased $85,397 or 7.51% for the three months ended 
September 30, 1997, primarily due to increases in the average balances of 
mortgage, commercial and consumer loans, of $2.4 million or 7.05%, $2.0 
million or 27.91% and $160,386 or 3.61% respectively.  The increase in 
Commercial loans is primarily related to management's continued efforts to 
increase its presence in the mid-coast market. Consumer loans consist of 
home equity, installment loans, share loans and student loans.  
Miscellaneous other interest income increased $20,789 or 67.65% primarily as 
a result of an increase in the volume of Federal funds sold.  These 
increases were partially off set by decreases in balances of investment 
securities and mortgage backed securities.

Interest Expense

      Total interest expense for the three month period ended September 30, 
1997 increased $49,895 or 8.27%, compared to the same period in the previous 
fiscal year.  This increase is primarily the result of an increase of $3.5 
million in advances from the Federal Home Loan Bank used to partially fund 
increased loan demand.  This increase is partially offset by a decrease in 
the average cost of funds on borrowings of 7 basis points for the current 
period compared to the period ended September 30, 1996.  The strategy of the 
Bank regarding deposits continues to focus on reducing the average cost of 
funds through a combination of Certificate of Deposit "specials" and 
increasing transaction account deposits.  This strategy has reduced the 
average cost of funds on deposits by 16 basis points for the current period 
as compared to the period ended September 30, 1996.

Net Interest Income

      Net interest income, before provisions for loan losses, increased 
$35,502 or 6.65% for the quarter ended September 30, 1997 as compared to the 
same quarter in the previous fiscal year.  This increase is primarily the 
result of average balance increases in mortgage, commercial and consumer 
loans.

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 decrease in the Bank's provision for losses on loans is 
based upon management's belief that the total provision for losses on loans 
represents adequate reserves commensurate with moderate risks associated 
with the loan portfolio.

Non Interest Income

      Total non-interest income for the three month period ended September 
30, 1997 increased $25,718 or 49.21% as a result of increased fees and 
charges related to NOW accounts and overdraft fees and the sale of loans to 
the secondary market.

Other Expenses

      Total other expenses for the three month period ended September 30, 
1997 decreased $211,793 or 32.28% compared to the previous fiscal year, the 
decrease is primarily due to the one time assessment paid to recapitalize 
the SAIF Fund.  Other Expenses increased $29,506 or 7.11% without the 
$241,299 SAIF assessment.  The increase in other expenses resulted from 
increases in compensation, the addition of an employee, depreciation and 
amortization related to the Banks computer conversion and modest increases 
in miscellaneous other expenses consisting of shareholder services, 
utilities, postage, and office supplies,  which are partially offset by 
decreases in data processing.


Six Months Ended September 30, 1997 and 1996


Net Income

      Mid-Coast reported net income of $238,873 or $1.03 cents per share for 
the six months ended September 30, 1997, compared to $33,765 or $0.15 cents 
per share for the six months ended September 30, 1996.  During the period, 
the Bank recorded an increase in net interest income, before provision for 
losses on loans, of $54,019 or 5.09%,and an increase in total non interest 
income of $27,663 or 23.81%.  Total other expenses decreased $186,550 or 
17.66% primarily due to the SAIF assessment. Total other expenses would have 
increased $54,749 or 6.72%, compared to the period ended September 30, 1996, 
without the SAIF assessment.

Interest Income

      Total interest income for the six months ended September 30, 1997 
increased $140,728 or 6.22% as compared to the same period in the previous 
fiscal year.  Interest on loans increased $174,482 or 8.56% primarily due to 
increases in the average balances of mortgage, commercial and consumer 
loans. Interest on investment securities and mortgage backed securities 
decreased $37,876 or 26.91%, primarily due to the sale of securities, and 
the resulting lower volume of interest earning investments.

Interest Expense

      Total interest expense for the six month period ended September 30, 
1997 increased $86,709 or 7.23%.  Interest expense on borrowed money 
increased $109,639 or 49.28% and interest on deposits decreased $22,930 or 
2.35%.  Interest expense on borrowed money increased primarily due to an 
increase of $3.5 million in advances used to partially fund increased loan 
demand.  The Bank's strategy remains focused on reducing the average cost of 
funds on deposits and borrowings.  This is accomplished through a 
combination of increased transaction account balances, Certificate of 
Deposit "specials" and borrowings at rate more favorable than these 
available in the market place.  This strategy has reduced the average cost 
of funds on borrowings and deposits by 7 basis points and 16 basis points, 
respectively, compared to the same period in the previous fiscal year.

Net Interest Income

      Total net interest income for the six months ended September 30, 1997 
increased $54,019 or 5.09%.  This increase is primarily the result of 
increases in the average balances of mortgage, commercial and consumer loans 
which is partially offset by increased interest expense resulting from 
Federal Home Loan Bank advances.

Provisions for Losses on Loans

      The Banks provision for losses on loans for the six month period ended 
September 30, 1997 decreased to $32,000 as compared to $51,000 in the 
previous fiscal year.  The provision is deemed appropriate given the risks 
associated with the Bank's loan portfolio.

Non-Interest Income

      Non-interest income for the six months ended September 30, 1997 
increased $27,663 or 23.81%, compared to the same period in the previous 
fiscal year.  Increases occurred in all categories of Non-Interest income, 
with miscellaneous income increasing $25,880 or 33.42%.  Miscellaneous 
income is the result of increased fees and charges particularly related to 
NOW accounts and overdraft fees.

Other Expenses

      Other expenses for the six month period ended September 30, 1997 
decreased $186,550 or 17.66% as compared to the same period in the previous 
fiscal year.  The decrease in other expenses is primarily related to the 
payment of SAIF assessment.  Other expenses increased $54,749 or 6.72% 
without the SAIF assessment as compared to the previous year.  This increase 
in other expenses resulted from increases in compensation, the addition of 
an employee, depreciation and amortization related to the computer 
conversion and modest increases in other expenses consisting of shareholder 
services, utilities, postage, and office supplies, which are partially 
offset by decreases in data processing.

Insurance of Deposits

      The Bank's deposits are insured up to applicable limits under the SAIF 
as administered by the FDIC under the Federal Deposit Insurance Act 
("FDIA").  The assessments paid by depository institutions for the insurance 
of deposits are determined on a risk-based assessment system pursuant to 
which each institution is assigned to one of nine categories.  For the first 
three quarters of 1996, SAIF-insured institutions paid deposit insurance 
assessments at annual rates that ranged from 0.23% of deposits for the least 
risky institutions to 0.315% of deposits for the most risky institutions.  
In contrast, the least risky institutions insured under the Bank Insurance 
Fund ("BIF") paid deposit insurance assessments at the annual minimum of 
$2,000, and the other BIF-insured institutions paid assessments at rates 
that ranged from 0.03% to 0.27% of deposits.

      On September 30, 1996, the Deposit Insurance Funds Act of 1996 (the 
"Funds Act") was enacted into law to address, among other things, the 
disparity in the deposit insurance assessment rates imposed on BIF-insured 
and on SAIF-insured institutions.  The Funds Act amended the FDIA in several 
ways to recapitalize the SAIF and to reduce the disparity to the assessment 
rates for the BIF and the SAIF.  To recapitalize the SAIF, the Funds 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 was fixed at 0.657% of an 
institution's SAIF-assessable deposits, and the special assessment was paid 
on November 27, 1996.  The special assessment was based on the amount of 
SAIF-assessable deposits held at March 31, 1995, as adjusted under the Funds 
Act. For the Bank, the special assessment on the deposits held on March 31, 
1995, was $241,299 (before giving effect to any tax benefits), and was 
charged to expense in the quarter ended September 30, 1996.

      The Funds Act also provides that the FDIC cannot assess regular 
insurance assessments for an insurance fund unless required to maintain or 
to achieve the designated reserve ratio of 1.25%, except on those of its 
member institutions that are not classified as "well capitalized" or that 
have been found to have "moderately severe" or "unsatisfactory" financial, 
operation or compliance weaknesses.  The Bank has not been so classified by 
the FDIC or the OTS.  In view of the recapitalization of the SAIF, the FDIC 
reduced the annual assessment rates for SAIF-assessable deposits for periods 
beginning on October 1, 1996.  For the last quarter of 1996, the reduced 
annual assessment rates ranged from 0.18% to 0.27% of deposits.  Beginning 
with January 1, 1997, the annual assessment rates are the same for both BIF-
insured and SAIF-insured institutions, with the annual assessment rates 
ranging from 0.0% to 0.27% of deposits.

      In addition, the Funds Act expanded the assessment base for the 
payments on the bonds ("FICO bonds") issued in the late 1980s by the 
Financing Corporation to recapitalize the now defunct Federal Savings and 
Loan Insurance Corporation.  Beginning January 1, 1997, the deposits of both 
BIF-and SAIF-insured institutions will be assessed for the payments on the 
FICO bonds.  Until December 31, 1999, or such earlier date on which the last 
savings association ceases to exist, the rate of assessment for BIF-
assessable deposits will be one-fifth of the rate imposed on SAIF-assessable 
deposits.  The FDIC has reported that, for the semiannual period beginning 
on January 1, 1997, the rate of assessments for the payments on the FICO 
bonds will be 0.013% for BIF-assessable deposits and 0.0648% for SAIF-
assessable deposits.

      The Funds Act also provides for the merger of the BIF and SAIF on 
January 1, 1999, with such merger being conditioned upon the prior 
elimination of the thrift charter.  The Funds Act required the Secretary of 
the Treasury to conduct a study of relevant factors with respect to the 
development of a common charter for all insured depository institutions and 
the abolition of separate charters for banks and thrifts and to report the 
Secretary's conclusions and the findings to the Congress.  The Secretary of 
the Treasury has recommended that the separate charter for thrifts be 
eliminated only if other legislation is adopted that permits bank holding 
companies to engage in certain non-financial activities.  Absent legislation 
permitting such non-financial activity, the Secretary of the Treasury 
recommended retention of the thrift charter.  The Secretary of the Treasury 
also recommended the merger of the BIF and SAIF irrespective of whether the 
thrift charter is eliminated.  Other proposed legislation has been 
introduced in Congress that would require thrift institutions to convert to 
bank charters.

      An insured institution is subject to periodic examination, and 
regulators may revalue the assets of an institution, based upon appraisals, 
and require establishment of specific reserves in amounts equal to the 
difference between such revaluation and the book value of the assets.  SAIF 
insurance of deposits may be terminated by the FDIC, after notice and 
hearing, upon a finding by the FDIC that a savings institution has engaged 
in an unsafe or unsound practice, or is in unsafe or unsound condition to 
continue operations, or has violated any applicable law, regulation, rule, 
order or condition imposed by the OTS or the FDIC.  Management of the Bank 
is not aware of any practice, condition or violation that might lead to 
termination of its deposit insurance.

Liquidity and Capital Resources

      On September 30, 1997, the Holding Company's stockholders' equity was 
$5,277,349 or 8.58% of total assets compared to $5,075,545 or 8.61% at March 
31, 1997.

      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 withdrawal 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, 
1997, Waldoboro's liquidity ratio was approximately 17.02% compared to 
14.67% at September 30, 1996.

      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, 1997, Waldoboro had tangible capital of $5,124,000 or 
8.33% of adjusted total assets, which exceeds the minimum required tangible 
capital and leverage ratio or "core" capital requirements.  Waldoboro had 
risk-based capital of $5,446,000 or 14.96% of risk-weighted assets at 
September 30, 1997.



                          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, 1997.

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

         None.

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

         None.

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

         None.

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

         None.

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

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

              (10)  Trust Agreement between Mid-Coast Bancorp, Inc. and
              Merrill Merchants Bank for the Recognition and Retention Plan
              of Mid-Coast Bancorp, Inc.


         (b)  Reports on Form 8-K.

              (27)  Financial Data Schedule*
              * Submitted only with filing in electronic format.  


                                 SIGNATURES


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

                                       MID-COAST BANCORP, INC.



Date                                   /s/ Wesley E. Richardson
      ------------------------         ------------------------------------
                                                     (Signature)
                                                Wesley E. Richardson
                                               President and Treasurer