U.S. SECURITIES AND EXCHANGE COMMISSION
                     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 September 30, 1997

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

	For the transition period from __________ to __________

                      Commission file number: 0-2664

                       INVESTORS FINANCE, INC.
   (Exact name of small business issuer as specified in its charter)
                        ___________________

		Hawaii				   99-0112763
	(State or other jurisdiction of		(I.R.S. Employer
	incorporation or organization)		Identification No.)

	50 South Beretania Street, Honolulu, Hawaii	96813
	(Address of principal executive offices)	(Zip Code)

                 Issuer's telephone number: (808) 533-7437
___________________

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or 
for such shorter period that the registrant was required to file such 
reports), and (2) has been subject to such filing requirements for the
past 90 days.  Yes [   ] No[ x ]

Number of shares outstanding of the issuer's common stock as of
September 30, 1997: 1,252,496.

Transitional Small Business Disclosure Format (check one): Yes [  ]  No [ x ]

				PART I.

Financial statements (unaudited)
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<CAPTION>
                               INVESTORS FINANCE, INC.
                              KUKUI PLAZA  SUITE C117B
                              50 SOUTH BERETANIA STREET
                                 HONOLULU, HI  96813

                              COMPARATIVE BALANCE SHEET
                                   AS OF: 30SEP97


ASSETS

                                               CURRENT YEAR               PRIOR YEAR
                                          SEPTEMBER 30, 1997         DECEMBER 31, 1996
                                          ------------------        ------------------
<S>                                       <C>                       <C>
CASH - NON-INTEREST-BEARING                      100,895.61                  5,524.97 
CASH IN INTEREST-BEARING ACCOUNTS                                            2,110.85 
CASH IN BROKERAGE ACCOUNTS                           709.87                 55,970.90 
CORPORATE SECURITIES                                                       156,975.00 
                                          ------------------        ------------------
                                                 101,605.48                220,581.72 

RECEIVABLES:
  NOTES RECEIVABLE                               359,505.58                501,177.80 
  ACCOUNTS RECEIVABLE                             95,298.61                 38,001.71 
  COMMISSIONS ADVANCED-RECEIVABLE                 10,198.62                  1,000.00 
  LOAN LATE CHARGES RECEIVABLE                        53.76                    148.76 
  ACCRUED INCOME                                     872.87                  3,297.89 
                                          ------------------        ------------------
TOTAL RECEIVABLES:                               465,929.44                543,626.16 

LESS:
  RESERVE FOR LOAN LOSSES                        (36,627.74)               (36,931.20)
  DEFERRED LOAN ORIGINATION FEES                    (244.17)                (3,444.46)
  DEFERRED LOAN ORIGINATION COSTS                    150.81                    559.25 
                                          ------------------        ------------------
                                                 429,208.34                503,809.75 

FURNITURE & FIXTURES                             269,801.24                269,801.24 
ALLOWANCE FOR DEPREC. - FURN. & FIXTURES        (224,160.75)              (204,660.44)
                                          ------------------        ------------------
                                                  45,640.49                 65,140.80 

REAL ESTATE - KUKUI PLAZA                        322,337.10                322,337.10 
RESERVE FOR DEPRECIATION - KUKUI PLAZA           (94,776.27)               (88,441.35)
                                          ------------------        ------------------
                                                 227,560.83                233,895.75 


TAXES WITHHELD                                        60.69 
SECURITY DEPOSITS                                  3,040.13                  3,040.13 
PREPAID EXPENSE                                     (901.14)                 3,162.48 
                                          ------------------        ------------------
TOTAL ASSETS                                     806,214.82              1,029,630.63 
                                          ==================        ==================
<CAPTION>
LIABILITIES

                                               CURRENT YEAR               PRIOR YEAR
                                          SEPTEMBER 30, 1997         DECEMBER 31, 1996
                                          ------------------        ------------------
<S>                                       <C>                       <C>
NOTES PAYABLE - BANKS                            100,000.00 
NOTES PAYABLE - STOCKHOLDERS                     191,599.74                339,283.35 


INVESTMENT CERTIFICATES:
                                          ------------------        ------------------
TOTAL INVESTMENT CERTIFICATES:


OTHER ACCRUED LIABILITIES                          1,889.00                 18,892.23 
                                          ------------------        ------------------
TOTAL LIABILITIES                                293,488.74                358,175.58 


EQUITY



CAPITAL - UNISSUED STOCK                        (148,601.00)
CAPITAL STOCK NO-PAR                           1,372,303.04              1,372,303.04 
RETAINED EARNINGS                               (679,727.91)              (660,414.25)
                                          ------------------        ------------------
                                                 543,974.13                711,888.79 
NET INCOME/(LOSS) YEAR-TO-DATE                   (31,248.05)               (40,433.74)
                                          ------------------        ------------------
TOTAL EQUITY                                     512,726.08                671,455.05 
                                          ------------------        ------------------
TOTAL LIABILITIES & EQUITY                       806,214.82              1,029,630.63 
                                          ==================        ==================


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<CAPTION>
                                     INVESTORS FINANCE, INC.
                           CONSOLIDATED STATEMENT OF INCOME & EXPENSE
                                    AS OF: SEPTEMBER 30, 1997

                                      <---------- 3 MONTHS ENDING---------->    <---------YEAR-TO-DATE AS OF--------->
                                      SEPTEMBER 30, 1997  SEPTEMBER 30, 1996    SEPTEMBER 30, 1997  SEPTEMBER 30, 1996
                                      ------------------  ------------------    ------------------  ------------------
<S>                                   <C>                 <C>                   <C>                 <C>
OPERATING INCOME
  INTEREST INCOME:
    EARNED INTEREST - CONSUMER LOANS             736               2,484                 1,866               7,182 
    EARNED INTEREST - R.E. LOANS               7,587              13,280                29,335              26,370 
    EARNED INTEREST - COMMERCIAL LOANS         1,307               4,769                 8,542              15,603 
    EARNED LATE CHARGES                          265                 602                 1,444               3,180 
    LOAN ORIGINATION FEES                      1,983                 570                 8,403                 707 
    INTEREST ON INVESTMENTS                        9               1,066                 1,331               2,020 

                                      ------------------  ------------------    ------------------  ------------------
                                              11,887              22,772                50,921              55,062 
  INTEREST EXPENSE                            (3,272)                                   (5,559)

                                      ------------------  ------------------    ------------------  ------------------
    NET INTEREST SPREAD                        8,615              22,772                45,362              55,062 
  LESS:

                                      ------------------  ------------------    ------------------  ------------------
                                               8,615              22,772                45,362              55,062 

  OTHER INCOME:
    COMMISSIONS EARNED                        34,138              38,781                89,902             134,581 
    INCOME FROM CHARGED-OFF LOANS              1,142               4,202                 4,055              10,670 
    INCOME FROM IDEAL FIN ACCTS                                                                                 67 
    COMMISSION ON INSURANCE                                                                                     53 
    MISCELLANEOUS INCOME                       1,500               1,000                 3,870               2,229 
    TAX REFUNDS                                                                            140 

                                      ------------------  ------------------    ------------------  ------------------
                                              45,396              66,755               143,329             202,662 
                                      ------------------  ------------------    ------------------  ------------------
  TOTAL OPERATING INCOME                      45,396              66,755               143,329             202,662 
OPERATING EXPENSES
  PERSONNEL EXPENSES:
    SALARIES & WAGES                           5,807               7,130                17,409              38,660 
    SALARIES & WAGES-M/D COMMISSIONS          14,014              14,060                34,225              55,622 
    PAYROLL TAXES                              1,449               1,332                 4,070               6,294 
    EMPLOYEE BENEFITS                          2,649               1,560                 7,405               5,465 
    CONSULTANT'S EXPENSE                                                                                      (500)

                                      ------------------  ------------------    ------------------  ------------------
                                              23,918              24,082                63,109             105,541 
  OCCUPANCY EXPENSES:
    REAL PROPERTY - TAXES                        575                 571                 1,718               1,692 
    DEPRECIATION EXPENSE                       6,433               6,472                19,363              17,301 
    INSURANCE EXPENSE                          1,380               2,552                 2,850               6,385 
    RENT ON OFFICE SPACE                       5,880               9,834                18,265              26,634 
    UTILITIES                                  1,187               1,100                 3,266               3,041 
    MAINTENANCE & REPAIRS                      2,715               2,935                 8,165               7,925 
    PARKING EXPENSE                               50                 300                   251                 505 

                                      ------------------  ------------------    ------------------  ------------------
                                              18,219              23,766                53,878              63,483 
  OTHER OPERATING EXPENSES:
    SOH DCCA ASSESSMENT                          392                 522                 1,282                 672 
    F.D.I.C. ASSESSMENT                                                                                      1,500 
    ADVERTISING EXPENSE                                              491                   969                 908 
    AUDITING EXPENSE                           1,740               3,818                 5,220              22,545 
    CREDIT REPORTS                                17                 179                    98                 479 
    LEGAL FEES                                   200               1,668                 1,811               2,606 
    POSTAGE EXPENSE                            2,531                 926                 3,673               2,825 
    OFFICE EXPENSE                             1,028               1,193                 3,227               3,170 
    PRINTING & STATIONERY                        729                 330                 1,106                 517 
    COMPUTER EXPENSE                           1,607               1,981                 5,381               5,725 
    GOVERNMENT LICENSE FEES                       25                                       100                 234 
    BANK SERVICE CHARGES                          38                                       113 
    BROKERAGE CHARGES                                                                        5 
    TELEPHONE                                  3,978               4,763                12,922              12,079 
    DUES/FEES - MORTGAGE DIVISION                638                 412                 2,338                 587 
    DUES/FEES - HEAD OFFICE                       61                 123                   388                 455 
    DONATIONS                                     85                 105                   320                 420 
    SUBSCRIPTIONS - HEAD OFFICE                                       52                    60                  52 
    SUBSCRIPTIONS - MORTGAGE DEPT                201                 578                   673               1,217 
    TRAVEL & PER DIEM                            168                 749                   422                 965 
    COLLECTION FEES                                                   94                    61                 282 
    PROMOTIONAL EXPENSE                          230                 230                   858               3,517 
    OTHER EXPENSE - (MISC.)                      894                 520                 1,038                 697 
    OUTSIDE SERVICES                           3,591               4,325                13,564               7,232 
    NOTARY EXPENSE                                 8                  58                    97                  83 
    TITLE FEE - AUTO                                                                                            40 

                                      ------------------  ------------------    ------------------  ------------------
                                              18,160              23,117                55,726              68,809 

                                      ------------------  ------------------    ------------------  ------------------
  TOTAL OPERATING EXPENSES                    60,298              70,964               172,712             237,834 
                                      ------------------  ------------------    ------------------  ------------------
  NET INCOME (LOSS) FROM OPERATIONS          (14,902)             (4,209)              (29,383)            (35,172)

  NON-OPERATING EXPENSES:
  STOCKHOLDER'S EXPENSES:
    STOCKHOLDERS' MEETING EXPENSE                798                                     1,865 
    STOCK TRANSFER AGENT                                           2,120                                     5,262 

                                      ------------------  ------------------    ------------------  ------------------
                                                 798               2,120                 1,865               5,262 

                                      ------------------  ------------------    ------------------  ------------------
  TOTAL NET INCOME (LOSS)                    (15,700)             (6,330)              (31,248)            (40,434)
                                      ==================  ==================    ==================  ==================

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