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 June 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 June 30,
1997: 1,252,496.

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

				PART I.

Financial statements (unaudited)
<TABLE>
<CAPTION>
                                     INVESTORS FINANCE, INC.
                                  STATEMENT OF INCOME & EXPENSE
                                      AS OF: JUNE 30, 1997

                                     FOR: ALL PROFIT CENTERS

                                      ----- JUNE, 1997 ----- BUDG ----- YEAR TO DATE ---- PREV
                                         ACTUAL     BUDGET    VAR    ACTUAL      BUDGET    VAR
                                      ----------- ---------- >10% -----------  ---------- >10%
<S>                                   <C>         <C>             <C>          <C>
OPERATING INCOME
  INTEREST INCOME:
    EARNED INTEREST - CONSUMER LOANS      (1,483)                      1,130 
    EARNED INTEREST - R.E. LOANS           3,972                      21,748 
    EARNED INTEREST - COMMERCIAL LOANS         9                       7,235 
    EARNED LATE CHARGES                       60                       1,179 
    LOAN ORIGINATION FEES                     32                       6,420 
    INTEREST ON INVESTMENTS                    3                       1,322 

                                      ----------- ----------      -----------  ----------
                                           2,593                      39,034 
  INTEREST EXPENSE                        (1,812)                     (2,287)

                                      ----------- ----------      -----------  ----------
    NET INTEREST SPREAD                      781                      36,747 

  OTHER INCOME:
    COMMISSIONS EARNED                    12,026                      55,764 
    INCOME FROM CHARGED-OFF LOANS                                      2,913 
    MISCELLANEOUS INCOME                   2,000                       2,370 
    TAX REFUNDS                                                          140 

                                      ----------- ----------      -----------  ----------
                                          14,807                      97,934 
                                      ----------- ----------      -----------  ----------
  TOTAL OPERATING INCOME                  14,807                      97,934 

OPERATING EXPENSES
  PERSONNEL EXPENSES:
    SALARIES & WAGES                       1,922                      11,602 
    SALARIES & WAGES-M/D COMMISSIONS       3,625                      20,211 
    PAYROLL TAXES                            280                       2,621 
    EMPLOYEE BENEFITS                      1,008                       4,661 

                                      ----------- ----------      -----------  ----------
                                           6,835                      39,095 
  OCCUPANCY EXPENSES:
    REAL PROPERTY - TAXES                    190                       1,143 
    DEPRECIATION EXPENSE                   2,149                      12,930 
    INSURANCE EXPENSE                        438                       1,470 
    RENT ON OFFICE SPACE                                              12,385 
    UTILITIES                              1,137                       2,080 
    MAINTENANCE & REPAIRS                    858                       5,450 
    PARKING EXPENSE                                                      201 

                                      ----------- ----------      -----------  ----------
                                           4,774                      35,659 

          (CONTINUED ON NEXT PAGE)
<PAGE>
<CAPTION>
                                     INVESTORS FINANCE, INC.
                                  STATEMENT OF INCOME & EXPENSE
                                      AS OF: JUNE 30, 1997

                                     FOR: ALL PROFIT CENTERS

                                      ----- JUNE, 1997 ----- BUDG ----- YEAR TO DATE ---- PREV
                                         ACTUAL     BUDGET    VAR    ACTUAL      BUDGET    VAR
                                      ----------- ---------- >10% -----------  ---------- >10%
<S>                                   <C>         <C>             <C>          <C>
  OTHER OPERATING EXPENSES:
    SOH DCCA ASSESSMENT                      148                         890 
    ADVERTISING EXPENSE                      161                         969 
    AUDITING EXPENSE                         580                       3,480 
    CREDIT REPORTS                            93                          81 
    LEGAL FEES                               104                       1,611 
    POSTAGE EXPENSE                          445                       1,143 
    OFFICE EXPENSE                           256                       2,199 
    PRINTING & STATIONERY                     93                         377 
    COMPUTER EXPENSE                         520                       3,774 
    GOVERNMENT LICENSE FEES                    8                          75 
    BANK SERVICE CHARGES                      13                          75 
    BROKERAGE CHARGES                                                      5 
    TELEPHONE                              3,801                       8,944 
    DUES/FEES - MORTGAGE DIVISION            202                       1,700 
    DUES/FEES - HEAD OFFICE                   61                         327 
    DONATIONS                                                            235 
    SUBSCRIPTIONS - HEAD OFFICE               60                          60 
    SUBSCRIPTIONS - MORTGAGE DEPT             84                         472 
    TRAVEL & PER DIEM                                                    254 
    COLLECTION FEES                                                       61 
    PROMOTIONAL EXPENSE                       32                         628 
    OTHER EXPENSE - (MISC.)                                              144 
    OUTSIDE SERVICES                       1,382                       9,973 
    NOTARY EXPENSE                             4                          88 

                                      ----------- ----------      -----------  ----------
                                           8,048                      37,565 

                                      ----------- ----------      -----------  ----------
  TOTAL OPERATING EXPENSES                19,656                     112,319 

                                      ----------- ----------      -----------  ----------
  NET INCOME (LOSS) FROM OPERATIONS       (4,850)                    (14,386)

  NON-OPERATING EXPENSES:
  STOCKHOLDER'S EXPENSES:
    STOCKHOLDERS' MEETING EXPENSE          1,067                       1,067 

                                      ----------- ----------      -----------  ----------
                                           1,067                       1,067 

                                      ----------- ----------      -----------  ----------
  TOTAL NET INCOME (LOSS)                 (5,916)         0          (15,452)          0 
                                      =========== =========       ============ ==========
<PAGE>
<CAPTION>
                               INVESTORS FINANCE, INC.
                              KUKUI PLAZA  SUITE C117B
                              50 SOUTH BERETANIA STREET
                                 HONOLULU, HI  96813

                              COMPARATIVE BALANCE SHEET
                                AS OF: JUNE 30, 1997


ASSETS

                                               CURRENT YEAR               PRIOR YEAR
                                             JUNE 30, 1997             JUNE 30, 1996
                                          ------------------        ------------------
<S>                                       <C>                       <C>                                
CASH - NON-INTEREST-BEARING                        2,667.83                 39,480.75
CASH IN INTEREST-BEARING ACCOUNTS                                            2,095.75 
CASH IN BROKERAGE ACCOUNTS                           700.92                  2,799.82 
CORPORATE SECURITIES                                                        51,975.00 
                                          ------------------        ------------------
                                                   3,368.75                 96,351.32 

RECEIVABLES:
  NOTES RECEIVABLE                               480,967.75                472,766.63 
  ACCOUNTS RECEIVABLE                             43,527.25                  2,065.13 
  COMMISSIONS ADVANCED-RECEIVABLE                 12,852.77 
  LOAN LATE CHARGES RECEIVABLE                       430.53                    159.61 
  RETURN CHECK FEES RECEIVABLE                                                  15.00 
  ACCRUED INCOME                                   5,304.55                  3,225.81 
                                          ------------------        ------------------
TOTAL RECEIVABLES:                               543,082.85                478,232.18 

LESS:
  RESERVE FOR LOAN LOSSES                        (36,640.03)               (40,660.87)
  DEFERRED LOAN ORIGINATION FEES                  (2,227.43)                (2,614.30)
  DEFERRED LOAN ORIGINATION COSTS                    257.74                    489.33 
                                          ------------------        ------------------
                                                 504,473.13                435,446.34 

FURNITURE & FIXTURES                             269,801.24                270,201.24 
ALLOWANCE FOR DEPREC. - FURN. & FIXTURES        (219,311.80)              (199,771.79)
                                          ------------------        ------------------
                                                  50,489.44                 70,429.45 

REAL ESTATE - KUKUI PLAZA                        322,337.10                322,337.10 
RESERVE FOR DEPRECIATION - KUKUI PLAZA           (93,192.54)               (86,857.62)
                                          ------------------        ------------------
                                                 229,144.56                235,479.48 


TAXES WITHHELD                                        60.69 
SECURITY DEPOSITS                                  3,040.13                  2,562.00 
PREPAID EXPENSE                                    5,124.95                  4,256.11 
                                          ------------------        ------------------
TOTAL ASSETS                                     795,701.65                844,524.70 
                                          ==================        ==================
<PAGE>
<CAPTION>
                               INVESTORS FINANCE, INC.
                              KUKUI PLAZA  SUITE C117B
                              50 SOUTH BERETANIA STREET
                                 HONOLULU, HI  96813

                              COMPARATIVE BALANCE SHEET
                                AS OF: JUNE 30, 1997


LIABILITIES

                                               CURRENT YEAR               PRIOR YEAR
                                             JUNE 30, 1997             JUNE 30, 1996
                                          ------------------        ------------------
<S>                                       <C>                       <C>                                
NOTES PAYABLE - BANKS                            125,000.00 
NOTES PAYABLE - STOCKHOLDERS                     191,599.74                134,616.69 


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


ACCOUNTS PAYABLE                                     292.66 
OTHER ACCRUED LIABILITIES                        (49,712.63)                32,123.43 
                                          ------------------        ------------------
TOTAL LIABILITIES                                267,179.77                166,740.12 



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                   (15,452.25)               (34,104.21)
                                          ------------------        ------------------
TOTAL EQUITY                                     528,521.88                677,784.58 
                                          ------------------        ------------------
TOTAL LIABILITIES & EQUITY                       795,701.65                844,524.70 
                                          ==================        ==================

</TABLE>