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 March 31, 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 March 31,
1997: 1,252,246.

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: MARCH 31, 1997

                                     FOR: ALL PROFIT CENTERS

                                      ----- MARCH, 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         460                       1,896 
    EARNED INTEREST - R.E. LOANS           3,529                       9,775 
    EARNED INTEREST - COMMERCIAL LOANS       963                       6,511 
    EARNED LATE CHARGES                      180                         808 
    LOAN ORIGINATION FEES                    257                         722 
    INTEREST ON INVESTMENTS                   (2)                      1,035 

                                      ----------- ----------      -----------  ----------
                                           5,387                      20,747 

  OTHER INCOME:
    COMMISSIONS EARNED                    14,517                      26,455 
    INCOME FROM CHARGED-OFF LOANS            826                       2,039 
    MISCELLANEOUS INCOME                                                   0 

                                      ----------- ----------      -----------  ----------
                                          20,731                      49,241 
                                      ----------- ----------      -----------  ----------
  TOTAL OPERATING INCOME                  20,731                      49,241 

OPERATING EXPENSES
  PERSONNEL EXPENSES:
    SALARIES & WAGES                       1,879                       5,836 
    SALARIES & WAGES-M/D COMMISSIONS       7,814                      10,542 
    PAYROLL TAXES                            360                       1,200 
    EMPLOYEE BENEFITS                        768                       1,931 

                                      ----------- ----------      -----------  ----------
                                          10,821                      19,509 
  OCCUPANCY EXPENSES:
    REAL PROPERTY - TAXES                    190                         571 
    DEPRECIATION EXPENSE                   2,157                       6,472 
    INSURANCE EXPENSE                        628                       1,957 
    RENT ON OFFICE SPACE                   2,940                       9,298 
    UTILITIES                                322                         943 
    MAINTENANCE & REPAIRS                  1,001                       2,635 
    PARKING EXPENSE                                                      101 

                                      ----------- ----------      -----------  ----------
                                           7,239                      21,978 

          (CONTINUED ON NEXT PAGE)
<PAGE>
<CAPTION>
                                      INVESTORS FINANCE, INC.
                                  STATEMENT OF INCOME & EXPENSE
                                      AS OF: MARCH 31, 1997

                                     FOR: ALL PROFIT CENTERS

                                      ----- MARCH, 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                         445 
    ADVERTISING EXPENSE                      161                         484 
    AUDITING EXPENSE                         580                       1,740 
    CREDIT REPORTS                             9                          42 
    LEGAL FEES                                                         1,507 
    POSTAGE EXPENSE                          156                         508 
    OFFICE EXPENSE                           460                       1,175 
    PRINTING & STATIONERY                     53                         259 
    COMPUTER EXPENSE                         624                       1,951 
    GOVERNMENT LICENSE FEES                    8                          50 
    BANK SERVICE CHARGES                      13                          38 
    BROKERAGE CHARGES                                                      5 
    TELEPHONE                              2,685                       5,143 
    DUES/FEES - MORTGAGE DIVISION            772                       1,095 
    DUES/FEES - HEAD OFFICE                   61                         143 
    DONATIONS                                100                         200 
    SUBSCRIPTIONS - MORTGAGE DEPT             84                         252 
    TRAVEL & PER DIEM                        176                         252 
    COLLECTION FEES                            6                          60 
    PROMOTIONAL EXPENSE                      324                         587 
    OTHER EXPENSE - (MISC.)                   44                         144 
    OUTSIDE SERVICES                       1,827                       4,981 
    NOTARY EXPENSE                                                        50 

                                      ----------- ----------      -----------  ----------
                                           8,292                      21,112 

                                      ----------- ----------      -----------  ----------
  TOTAL OPERATING EXPENSES                26,352                      62,598 

                                      ----------- ----------      -----------  ----------
  NET INCOME (LOSS) FROM OPERATIONS       (5,621)                    (13,357)

  NON-OPERATING EXPENSES:
  STOCKHOLDER'S EXPENSES:

                                      ----------- ----------      -----------  ----------


                                      ----------- ----------      -----------  ----------
  TOTAL NET INCOME (LOSS)                 (5,621)         0          (13,357)          0 
                                      =========== =========       ============ ==========

<PAGE>
<CAPTION>
                               INVESTORS FINANCE, INC.
                              KUKUI PLAZA  SUITE C117B
                              50 SOUTH BERETANIA STREET
                                 HONOLULU, HI  96813

                              COMPARATIVE BALANCE SHEET
                                AS OF: MARCH 31, 1997


ASSETS

                                               CURRENT YEAR               PRIOR YEAR
                                            MARCH 31, 1997            MARCH 31, 1996
                                          ------------------        ------------------
<S>                                       <C>                       <C>
CASH - NON-INTEREST-BEARING                        3,950.42                  4,862.80 
CASH IN INTEREST-BEARING ACCOUNTS                                            2,082.21 
CASH IN BROKERAGE ACCOUNTS                         1,716.62                 61,411.04 
CORPORATE SECURITIES                              51,975.00 
                                          ------------------        ------------------
                                                  57,642.04                 68,356.05 

RECEIVABLES:
  NOTES RECEIVABLE                               465,287.86                386,081.08 
  ACCOUNTS RECEIVABLE                             44,223.75                  7,077.23 
  COMMISSIONS ADVANCED-RECEIVABLE                 12,000.73 
  LOAN LATE CHARGES RECEIVABLE                       181.42                    596.08 
  ACCRUED INCOME                                   2,703.48                  5,647.65 
                                          ------------------        ------------------
TOTAL RECEIVABLES:                               524,397.24                399,402.04 

LESS:
  RESERVE FOR LOAN LOSSES                        (36,919.25)               (40,660.87)
  DEFERRED LOAN ORIGINATION FEES                  (7,924.77)                (2,771.65)
  DEFERRED LOAN ORIGINATION COSTS                    324.05                    504.19 
                                          ------------------        ------------------
                                                 479,877.27                356,473.71 

FURNITURE & FIXTURES                             269,801.24                225,563.74 
ALLOWANCE FOR DEPREC. - FURN. & FIXTURES        (214,437.74)              (194,882.64)
                                          ------------------        ------------------
                                                  55,363.50                 30,681.10 

REAL ESTATE - KUKUI PLAZA                        322,337.10                322,337.10 
RESERVE FOR DEPRECIATION - KUKUI PLAZA           (91,608.81)               (85,273.89)
                                          ------------------        ------------------
                                                 230,728.29                237,063.21 


TAXES WITHHELD                                        20.23 
SECURITY DEPOSITS                                  3,040.13                  2,742.00 
PREPAID EXPENSE                                    4,186.72                  5,196.05 
                                          ------------------        ------------------
TOTAL ASSETS                                     830,858.18                700,512.12 
                                          ==================        ==================
<PAGE>
<CAPTION>
                                INVESTORS FINANCE, INC.
                              KUKUI PLAZA  SUITE C117B
                              50 SOUTH BERETANIA STREET
                                 HONOLULU, HI  96813

                              COMPARATIVE BALANCE SHEET
                                AS OF: MARCH 31, 1997


LIABILITIES

                                               CURRENT YEAR               PRIOR YEAR
                                            MARCH 31, 1997            MARCH 31, 1996
                                          ------------------        ------------------
<S>                                       <C>                       <C>
NOTES PAYABLE - BANKS                             80,000.00 
NOTES PAYABLE - STOCKHOLDERS                     243,836.34                 11,453.90 


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


OTHER ACCRUED LIABILITIES                        (23,595.48)                 3,096.76 
                                          ------------------        ------------------
TOTAL LIABILITIES                                300,240.86                 14,550.66 



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                   (13,356.81)               (25,927.33)
                                          ------------------        ------------------
TOTAL EQUITY                                     530,617.32                685,961.46 
                                          ------------------        ------------------
TOTAL LIABILITIES & EQUITY                       830,858.18                700,512.12 
                                          ==================        ==================

</TABLE>