UNITED STATES
                                     SECURITIES AND EXCHANGE COMMISSION
                                            450 5TH STREET, N.W.
                                           WASHINGTON, D. C. 20549

                                                                        

                                                 FORM 10-QSB

(Mark One)
 X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE             
          SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 1998

                                                     OR

         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE           
               SECURITIES EXCHANGE ACT OF 1934

For the transition period from       to        Commission File No. 0-25088


                     PERRY COUNTY FINANCIAL CORPORATION
         (Exact name of registrant as specified in its charter)


         Missouri                                     43-1694505
(State or other jurisdiction of        (I.R.S. Employer Identification No.)   
incorporation or organization)

14 North Jackson Street, Perryville, Missouri            63775-1334 
(Address of principal executive office)                 (Zip Code)           
                   
   
Registrant's telephone number, including area code (573) 547-4581

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


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 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      .

Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date.


                     Class                      Outstanding January 31, 1999
Common Stock, par value $.01 per share                 810,397 Shares


                        PERRY COUNTY FINANCIAL CORPORATION AND SUBSIDIARY

                                           FORM 10-QSB

                             FOR THE QUARTER ENDED DECEMBER 31, 1998

                                              INDEX


                                                                               
PAGE NO.


PART I - Financial Information (Unaudited)

    Consolidated Balance Sheets                                            1

    Consolidated Statements of Earnings                                    2

    Consolidated Statements of Comprehensive Earnings                      3

    Consolidated Statements of Cash Flows                                  4  
                 
    Notes to Consolidated Financial Statements                             5

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

PART II - Other Information                                               10



                     PERRY COUNTY FINANCIAL CORPORATION AND SUBSIDIARY

                                 Consolidated Balance Sheets
                                        (Unaudited)


                                                  December 31,  September 30,
      Assets                                         1998            1998     

Cash and cash equivalents                        $ 10,365,319    11,796,514
Securities available for sale, at market
 value (amortized cost of $35,725,499 
 and $33,174,361)                                  35,726,400    33,274,100
Federal Home Loan Bank stock                          750,000       750,000
Mortgage-backed securities available for sale,
 at market value (amortized cost of $34,796,096
 and $33,695,252)                                  35,041,880    34,128,765
Loans receivable, net                              15,530,635    15,764,398
Premises and equipment, net                           325,943       333,323
Accrued interest receivable:
   Securities                                         461,972       430,289
   Mortgage-backed securities                         194,714       189,193
   Loans receivable                                    60,426        74,955
Other assets                                           43,114        65,149
      Total assets                               $ 98,500,403    96,806,686

   Liabilities and Stockholders' Equity

Deposits                                         $ 66,255,743    64,150,713
Accrued interest on deposits                           99,243       144,081
Advances from FHLB of Des Moines                   15,000,000    15,000,000
Advances from borrowers for taxes and insurance        81,586       182,209
Other liabilities                                      67,103        53,980
Income taxes payable                                  304,370       397,005
      Total liabilities                            81,808,045    79,927,988
Commitments and contingencies
Serial preferred stock, $.01 par value, 
  1,000,000 shares authorized; none issued
  and outstanding                                     -                 -     
Common stock, $.01 par value; 5,000,000 shares 
  authorized;  856,452 shares issued                    8,565         8,565
Additional paid-in capital                          8,182,114     8,170,765
Common stock acquired by ESOP                        (489,753)     (501,246)
Common stock acquired by MRP                         (168,905)     (189,030)
Unrealized gain (loss) on securities available 
  for sale, net                                       155,411       335,950
Treasury stock at cost, 46,055 and 34,555 shares     (834,503)     (608,815)
Retained earnings - substantially restricted        9,839,429     9,662,509
      Total stockholders' equity                   16,692,358    16,878,698
      Total liabilities and stockholders' equity $ 98,500,403    96,806,686

See accompanying notes to consolidated financial statements.

<PAGE>1

                        PERRY COUNTY FINANCIAL CORPORATION AND SUBSIDIARY

                              Consolidated Statements of Earnings
                                       (Unaudited)

                                                     Three Months Ended
                                                       December 31,            
                                                   1998             1997     
Interest income:
   Loans receivable                            $  302,201          286,569
   Mortgage-backed securities                     567,482          506,672
   Securities                                     570,188          626,771
   Other interest-earning assets                  144,573           35,753
      Total interest income                     1,584,444        1,455,765
Interest expense:
   Deposits                                       840,225          799,513
   Advances from FHLB                             210,974           99,276
      Total interest expense                    1,051,199          898,789
      Net interest income                         533,245          556,976
Provision for loan losses                           -                -     
      Net interest income after provision 
        for loan losses                           533,245          556,976
Noninterest income:
   Service charges on NOW accounts                  6,135            8,331
   Other                                            1,153              734
      Total noninterest income                      7,288            9,065
Noninterest expense:
   Compensation and benefits                      155,869          152,760
   Occupancy expense                                7,824            7,596
   Equipment and data processing expense           27,234           19,827
   SAIF deposit insurance premium                   9,320            9,568
   Other                                           47,290           46,028
      Total noninterest expense                   247,537          235,779
      Earnings before income taxes                292,996          330,262
Income taxes                                      116,077          130,306
      Net earnings                              $ 176,919          199,956

Basic earnings per common share                 $     .23              .26

Diluted earnings per common share               $     .23              .26

Dividends per share                             $     .00              .00


See accompanying notes to consolidated financial statements.

<PAGE>2

                         PERRY COUNTY FINANCIAL CORPORATION AND SUBSIDIARY

                         Consolidated Statements of Comprehensive Earnings
                                          (Unaudited)

                                                      Three Months Ended
                                                         December 31,          
                                                     1998             1997     

Net earnings                                      $ 176,919          199,956
Other comprehensive earnings - unrealized 
  gain (loss) on securities available for sale     (180,539)          63,782
      Comprehensive earnings (loss)               $  (3,620)         263,738


See accompanying notes to consolidated financial statements.

<PAGE>3


                          PERRY COUNTY FINANCIAL CORPORATION AND SUBSIDIARY

                            Consolidated Statements of Cash Flows
                                       (Unaudited)

                                                          Three Months Ended    
                                                             December 31,       
                                                        1998           1997   
Cash flows from operating activities:
   Net earnings                                     $  176,919       199,956
   Adjustments to reconcile net earnings
      to net cash provided by (used for)
        operating activities:
         Depreciation expense                            7,599         3,669
         ESOP expense                                   22,842        25,715
         MRP expense                                    20,125        19,522
         Amortization of premiums, discounts
           and loan fees, net                          (89,623)      (73,815)
   Decrease (increase) in:
      Accrued interest receivable                      (22,675)      (44,197)
      Other assets                                      22,035        20,955
   Increase (decrease) in:
      Accrued interest on deposits                     (44,838)       (4,504)
      Other liabilities                                 13,123        22,317
      Income taxes payable                              13,395         3,332
            Net cash provided by (used for)
              operating activities                     118,902       172,950
Cash flows from investing activities:
   Loans originated, net of principal collections      233,763    (1,141,776)
   Mortgage-backed securities available for sale:
      Purchased                                     (3,503,612)          -     
      Principal collections                          2,402,671       919,567
   Securities available for sale:
      Purchased                                    (13,611,419)   (2,000,000)
      Proceeds from maturity                        11,150,000     4,500,000
      Proceeds from sale                                 -           800,000
   Purchase of premises and equipment                     (219)          -     
            Net cash provided by (used for)
              investing activities                  (3,328,816)    3,077,791
Cash flows from financing activities:
   Net increase (decrease) in:
      Deposits                                       2,105,030       622,897
      Advances from borrowers for taxes and
        insurance                                     (100,623)      (95,558)
   Advances from Federal Home Loan Bank:
      Proceeds                                           -         2,000,000
      Repayments                                         -        (2,000,000)
   Purchase of treasury stock                         (225,688)          -     
            Net cash provided by (used for)
              financing activities                   1,778,719       527,339
            Net increase (decrease) in cash
              and cash equivalents                  (1,431,195)    3,778,080
Cash and cash equivalents at beginning of period    11,796,514     2,552,167
Cash and cash equivalents at end of period        $ 10,365,319     6,330,247

Supplemental disclosures of cash flow information:
   Cash paid during the year for:
      Interest on deposits                        $    885,063       804,017
      Interest on advances from FHLB                   210,974        99,276
      Federal income taxes                        $    102,682       126,973

See accompanying notes to consolidated financial statements.

<PAGE>4

                         PERRY COUNTY FINANCIAL CORPORATION AND SUBSIDIARY

                            Notes to Consolidated Financial Statements
                                        (Unaudited)


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 (1)  The information contained in the accompanying consolidated financial 
statements is unaudited.  In the opinion of management, the consolidated
financial statements contain all adjustments (none of which were other than 
normal recurring entries) necessary for a fair statement of the results of
operations for the interim periods.  The results of operations for the
interim periods are not necessarily indicative of the results which may be
expected for the entire fiscal year.  These consolidated financial statements 
should be read in conjunction with the consolidated financial statements
of the Company for the year ended September 30, 1998 contained in the 1998
Annual Report to Stockholders which is filed as an exhibit to the Company's
Annual Report on Form 10-KSB.

 (2)  Following is a summary of basic and diluted earnings per common share for
      the three months ended December 31, 1998 and 1997:
                                                        Three Months Ended     
                                                           December 31,    
                                                         1998           1997   

      Net earnings                                  $   176,919        199,956

      Weighted-average shares - Basic EPS               761,847        773,750
      Stock options under treasury stock method           1,875          7,682
      Weighted-average shares - Diluted EPS             763,722        781,432

      Basic earnings per common share               $       .23            .26

      Diluted earnings per common share             $       .23            .26

<PAGE>5

General

Perry County Financial Corporation (Company) has no significant assets other 
than common stock of Perry County Savings Bank, FSB (Bank), the loan to the
ESOP and net proceeds retained by the Company following the conversion.  The
Company's principal business is the business of the Bank.  Therefore, the
discussion in the Management's Discussion and Analysis of Financial Condition
and Results of Operations relates to the Bank and its operations.

Certain statements in this report which relate to the Company's plans, 
objectives or future performance may be deemed to be forward-looking 
statements within the meaning of the Private Securities Litigation Act of 
1995.  Such statements are based on management's current expectations. 
Actual strategies and results in future periods may differ materially from
those currently expected because of various risks and Uncertainties.  
Additional discussion of factors affecting the Company's business and
prospects is contained in periodic filings with the Securities and Exchange
Commission.  

Asset and Liability Management and Market Risk

The Bank's net interest income is dependent primarily upon the difference or 
spread between the average yield earned on loans, securities and MBS and the 
average rate paid on deposits, as well as the relative amounts of such assets
and liabilities.  The Bank, as other thrift institutions, is subject to 
interest rate risk to the degree that its interest-bearing liabilities mature
or reprice at different times, or on a different basis, than its interest-
earning assets.  The Bank does not purchase derivative financial instruments
or other financial instruments for trading purposes.  Further, the Bank is
not subject to foreign currency exchange rate risk, commodity price risk or 
equity price risk.

The Bank's principal financial objective is to achieve long-term profitability 
while managing its exposure to fluctuating interest rates.  The Bank has an 
exposure to interest rate risk, including short-term U.S. prime interest rates.
The Bank has employed various strategies intended to minimize the adverse effect
of interest rate risk on future operations by providing a better match 
between the interest rate sensitivity of its assets and liabilities.  
Although the Bank has originated adjustable rate mortgage loans (AMLs) in the
past, recently the Bank has originated primarily 20-year, fixed rate loans.
Since April, 1998, the Bank has purchased $13.5 million of 20- and 30-year
fixed rate mortgage-backed securities.  Advances from the FHLB with a 10-year
term, callable in 5 years, were used to fund the purchases.  Management does
not anticipate that either financial objectives, strategies or instruments 
used to manage its interest rate risk exposure will change significantly in
the near future.

The OTS provides a net market value methodology to measure the interest rate 
risk exposure of thrift institutions.  This exposure is a measure of the 
potential decline in the net portfolio value (NPV) of the institution based upon
the effect of an assumed 100 basis point increase or decrease in interest
rates.  NPV is the present value of the expected net cash flows from the 
institution's financial instruments (assets, liabilities and off-balance
sheet contracts).  Loans, deposits, and investments are valued taking
into consideration similar maturities, related discount rates and applicable 
prepayment assumptions.  

Year 2000

The Bank is reviewing computer applications with its outside data processing 
service bureau and other software vendors to ensure operational and financial 
systems are not adversely affected by "year 2000" software failures.  All 
major customer applications are processed through an outside service bureau
which recently completed proxy testing.  Other major systems have been 
tested.  Connectivity testing between Bank and vendor systems to ensure 
continued compatibility is scheduled for March, 1999.  The Bank identified
certain of its hardware and software that would not be year 2000 compliant and

<PAGE>6

purchased newer equipment and software amounting to $63,000 in 1998.  
Management is unable to estimate any additional expense related to this 
issue.  Any year 2000 compliance failure could result in additional expense to 
the Bank.

Liquidity and Capital Resources

The Bank's principal sources of funds are cash receipts from deposits, security
maturities, principal collections on mortgage-backed securities, loan repayments
by borrowers and net earnings.  The Bank has an agreement with the Federal Home
Loan Bank of Des Moines to provide cash advances, should the Bank need 
additional funds.

The minimum level of liquidity required by regulation is presently 4%.  The 
Bank's liquidity ratio exceeded the regulatory requirement at December 31, 
1998.  

Under the capital adequacy guidelines and regulatory framework for prompt 
corrective action, the Bank must meet specific capital guidelines that 
involve quantitative measures of the Bank's assets, liabilities, and certain 
off-balance sheet items as calculated under regulatory accounting practices.
Capital adequacy guidelines require Tier 1 (core) capital of at least 4% (3%
under certain circumstances) of total assets, Tier 1 capital of 4% of risk-
weighted assets and total capital (risk-based capital) of 8% of risk-weighted
assets.  As of December 31, 1998, the Bank was categorized as well 
capitalized under the regulatory framework for prompt corrective action.

The Bank's regulatory capital and regulatory capital requirements at 
December 31, 1998 are summarized as follows:
    
                                           Minimum Required  Minimum Required
                                              for Capital        to be "Well
                                     Actual     Adequacy         Capitalized"  
                                  Amount   Ratio  Amount  Ratio  Amount  Ratio  
                                                   (Dollars in Thousands)
Consolidated stockholders' equity $16,692
Stockholders' equity of Company    (2,901)
Unrealized gain on securities        (155)
Tangible capital                   13,636  14.2%  $1,440  1.5%
General valuation allowance            25
Total capital to risk-weighted 
  assets                          $13,661   65.2% $1,676  8.0%  $2,096  10.0%
Tier 1 capital to risk-weighted
  assets                          $13,636   65.1% $  838  4.0%  $1,257   6.0%

Tier 1 capital to total assets    $13,636   14.2% $3,839  4.0%  $4,798   5.0%

Commitments to originate mortgage loans and fund loans in process at 
December 31, 1998 amounted to $1,063,000, expiring in 180 days or less. 
Commitments at December 31, 1998 to purchase securities were approximately 
$2,000,000.

<PAGE>7


Financial Condition

Deposits from customers and cash and cash equivalents were used to fund 
purchases of securities and mortgage-backed securities.  Accrued interest 
payable on deposits decreased due to timing of interest payments.  Advances
from borrowers for taxes and insurance decreased due to the payment of real
estate taxes on behalf of borrowers in December.  During the three months 
ended December 31, 1998 the Company repurchased 11,500 shares of common stock 
in the open market at a price of $19.625 per share.  While the purchase of 
treasury stock may be beneficial to the Company or shareholders, the purchase 
of treasury stock reduces interest-earning assets of the Company.  Capital of
the Bank is also reduced to the extent treasury stock purchases are funded by 
dividends from the Bank to the Company.

Asset Quality

Loans are placed on a nonaccrual status when contractually delinquent more than
ninety days.  There were no nonaccrual loans at December 31, 1998.

Following is a summary of activity in the allowance for loan losses:

   Balance at September 30, 1998                       $      25,000
      Charge-offs                                             -     
      Recoveries                                              -     
      Provision for loan loss                                 -     
   Balance at December 31, 1998                        $      25,000


                                         Results of Operation

Net Earnings 

Net earnings decreased from $200,000 for the three months ended December 31,
1997 to $177,000 for the three months ended December 31, 1998.  The decrease
was due primarily to a decline in net interest income and an increase in 
noninterest
expense, offset by a decrease in income taxes.

Net Interest Income

Net interest income decreased from $557,000 for the three months ended December
31, 1997 to $533,000 for the three months ended December 31, 1998.  Interest
income on loans receivable increased as a result of a higher average balance
of loans in the 1998 period.  Interest on other interest- earning assets 
increased significantly due to a higher average balance of FHLB daily time 
deposits.  Components of interest income vary from time to time based on the 
availability and interest rates of loans, securities, MBSs and other interest-
bearing assets.  Interest on deposits increased due to a higher weighted-
average rate, reflecting an increasingly competitive market for retail 
deposits.  Interest on FHLB advances increased due to a higher average balance.

Provision for Loan Losses

Provision for loan losses is based upon management's consideration of economic
conditions which may affect the ability of borrowers to repay the loans.  
Management also reviews individual loans for which full collectibility may not 
be reasonably assured and considers, among other matters, the risks inherent 
in the Bank's portfolio and the estimated fair value of the underlying 
collateral.  This evaluation is ongoing and results in variations in the 
Bank's provision for loan losses.  As a result of this evaluation, the Bank
made no provision for loan losses for the three months ended December 31,
1998 and 1997.

<PAGE>8


Noninterest Income

Noninterest income was comparable for the three months ended December 31, 1997
and 1998.

Noninterest Expense 

Noninterest expense increased from $236,000 for the three months ended December
31, 1997 to $248,000 for the three months ended December 31, 1998.  The
increase was due primarily to higher data processing costs and depreciation on
equipment.

Income Taxes

Income taxes decreased due to lower pretax earnings.

<PAGE>9

                         PERRY COUNTY FINANCIAL CORPORATION AND SUBSIDIARY

                                  PART II - Other Information


Item 1 - Legal Proceeding

      There are no material legal proceedings to which the Holding Company or 
the Bank is a party or of which any of their property is subject.  From time to 
time, the Bank is a party to various legal proceedings incident to its business.

Item 2 - Changes in Securities

      None.

Item 3 - Defaults upon Senior Securities

      Not applicable.

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: none

      (b)  Reports on Form 8-K: None

                                                       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.


                                  PERRY COUNTY FINANCIAL CORPORATION
                                            (Registrant)


DATE: February 11, 1999           BY: Leo J. Rozier                            
                                      Leo J. Rozier, President, Chief Executive
                                      Officer and Duly Authorized Officer
                                      and Principal Financial Officer

<PAGE>10
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