UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D. C.  20549
  
                                 FORM 10-Q
   
   (Mark One)   [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                     THE SECURITIES EXCHANGE ACT OF 1934
   
                                    OR
                [  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934
                                                    
               For the quarterly period ended June 30, 1998
   
      
                    Commission file number   0 - 12784
   
                           WESTBANK CORPORATION
          (Exact name of registrant as specified in its charter)
   
      
   Massachusetts                                            04 - 2830731
(State or other jurisdiction of inc. or org.)       (I.R.S. Employer I.D. No.)

   
      
225 Park Avenue, West Springfield, Massachusetts                01090-0149
    (Address of principal executive offices)                    (Zip Code)
      
                              (413) 747-1400
           (Registrant's telephone number, including area code)
   
      
          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    
   
      
          Common stock, par value $2 per share: 3,780,531 shares
outstanding as of July 31, 1998.
 
                                                


<PAGE>                                     
                   WESTBANK CORPORATION AND SUBSIDIARIES

                                   INDEX

                      PART I - FINANCIAL INFORMATION
    
                                                                     Page  

Financial Statements                                                   

     Condensed Consolidated Balance Sheets                                3

     Condensed Consolidated Statements of Income                          4

     Condensed Consolidated Statements of Comprehensive Income            5

     Condensed Consolidated Statements of Stockholders' Equity            6

     Condensed Consolidated Statements of Cash Flows                      7

     Notes to Condensed Consolidated Financial Statements               8-9

     Management's Discussion and Analysis of Financial Condition and       
       Results of Operations                                          10-18


                        PART II - OTHER INFORMATION


     ITEM 1.  Legal Proceedings                                          19

     ITEM 2.  Changes in Rights of Securities Holders                    19

     ITEM 3.  Defaults by Company on its Senior Securities               19

     ITEM 4.  Results of Votes on Matters Submitted to a Vote
              of Security Holders                                        19

     ITEM 5.  Other events                                               19

     ITEM 6.  Exhibits and Reports on Form 8-K                           20

     Signatures                                                          21



<PAGE>



WESTBANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                 (Unaudited)  
(Dollar amounts in thousands)                   June 30, 1998 December 31, 1997 
-------------------------------------------------------------------------------
ASSETS
Cash and due from banks:
    Non-interest bearing                            $  11,554         $   9,603 
    Interest bearing                                      114                79 
Federal Funds sold                                     14,561             3,678
------------------------------------------------------------------------------- 
                                       
Total cash and cash equivalents                        26,229            13,360 
-------------------------------------------------------------------------------
Investment securities available for sale               28,446            20,088 
Investment securities held to maturity                                         
  (fair value of $33,184 in 1998 and $34,655 in 1997)  33,097            34,503
------------------------------------------------------------------------------- 
                              
Total securities                                       61,543            54,591
------------------------------------------------------------------------------- 
                                                                              
Loans                                     $252,957             $231,012 
Mortgage loans held-for-sale                 2,931                4,251 
Allowance for loan losses                   (2,504)              (2,848)
-------------------------------------------------------------------------------
                                                 
      Net-loans                                       253,384           232,415 
Bank premises and equipment                             5,023             4,474 
Accrued interest receivable                             2,182             1,968 
Other assets                                            2,561             1,457
------------------------------------------------------------------------------- 
                                               
TOTAL ASSETS                                         $350,922          $308,265 
===============================================================================
                                          
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
    Non-interest bearing                             $ 45,890          $ 48,638 
    Interest bearing                                  258,762           222,922
-------------------------------------------------------------------------------
         Total Deposits                               304,652           271,560 
Borrowed funds                                         11,552            11,884 
Federal Home Loan borrowing                             7,000                 0 
Accrued interest payable                                  467               379 
Other liabilities                                       1,207               691
------------------------------------------------------------------------------- 
                                             
         Total Liabilities                            324,878           284,514
------------------------------------------------------------------------------- 
                                                 
Stockholders' Equity:
 Common stock  - $2 par value
      Authorized    - 9,000,000 shares                                 
      Issued   - 3,767,313 shares in 1998 and
            3,581,377 shares in 1997                    7,535             7,163 
    Additional paid in capital                          9,748             8,819 
    Retained earnings                                   8,683             7,708 
    Accumulated other comprehensive income                 78                61
------------------------------------------------------------------------------- 
                                                
       Total Stockholders' Equity                      26,044            23,751
------------------------------------------------------------------------------- 
                             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           $350,922          $308,265
=============================================================================== 
                     
  See accompanying notes to condensed consolidated financial statements.

<PAGE>

WESTBANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME



         (Unaudited)
(Dollar amounts in thousands)
                                      QUARTER ENDED           SIX MONTHS ENDED
                                     06-30-98  06-30-97      06-30-98  06-30-97
-------------------------------------------------------------------------------
Income:
  Interest and fees on loans          $ 5,152   $ 4,869      $ 10,131   $ 9,512
  Interest and dividend income 
     on securities                        999       792         1,826     1,462
  Interest on temporary investments       113        37           149       152
-------------------------------------------------------------------------------
                                        
Total interest and dividend income      6,264     5,698        12,106    11,126
Interest expense                        2,982     2,534         5,561     4,945
-------------------------------------------------------------------------------
                                       
Net interest income                     3,282     3,164         6,545     6,181
Provision for loan losses                   0        40            19       190
-------------------------------------------------------------------------------
                                       
Net interest income after provision
  for loan losses                       3,282     3,124         6,526     5,991
-------------------------------------------------------------------------------
                                     
Gain on securities available for sale     139                     139
Other non-interest income                 459       485         1,067       991
-------------------------------------------------------------------------------
                         
Total non-interest income                 598       485         1,206       991
-------------------------------------------------------------------------------
                            
Non-interest expense:
  Salaries and benefits                 1,230     1,139         2,455     2,267
  Other non-interest expense            1,033       961         2,038     1,903
  Occupancy - net                         195       223           420       446
-------------------------------------------------------------------------------
                              
Total non-interest expense              2,458     2,323         4,913     4,616
-------------------------------------------------------------------------------
                              
Income before income taxes              1,422     1,286         2,819     2,366
Income taxes                              537       549         1,095       992
-------------------------------------------------------------------------------
                                  

Net Income                            $   885   $   737       $ 1,724   $ 1,374
===============================================================================
                                 
Net income per share
          -Basic                      $  0.24   $  0.21       $  0.46   $  0.40
          -Diluted                    $  0.23   $  0.21       $  0.45   $  0.39
Weighted average shares outstanding
          -Basic                    3,763,504 3,473,046     3,744,757 3,473,046
          -Dilutive option shares     111,192    81,079       105,138    70,039
          -Diluted                  3,874,696 3,554,125     3,849,895 3,543,085


  See accompanying notes to condensed consolidated financial statements.

<PAGE>

WESTBANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

<TABLE>
<CAPTION>

         (Unaudited)
(Dollar amounts in thousands)
                                                QUARTER ENDED        SIX MONTHS ENDED
                                              06-30-98  06-30-97    06-30-98    06-30-97
----------------------------------------------------------------------------------------                    
<S>												                                   <C>		     <C>		     <C>		       <C>
Net Income                                        $885      $737      $1,724      $1,374
 
Other comprehensive income:
                                        
     Unrealized gain/(loss) on securities 
     available for sale, net of income taxes
     (benefits) of $34 and $105 for the
     quarter and $42 and $(20) for the 
     six month period ended June 30, 1998
     and 1997, respectively.                  $50      $156       $64         $28 

     Less:  reclassification adjustment for
     gains included in net income, net of
     income taxes of $31 for the three and    
     six month periods ended June 30, 1998.    47         0        47           0
----------------------------------------------------------------------------------------

Other comprehensive income                           3       156          17          28
----------------------------------------------------------------------------------------


Comprehensive Income                              $888      $893      $1,741      $1,402
========================================================================================
</TABLE>


     See accompanying notes to condensed consolidated financial statements.


<PAGE>

   
WESTBANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
YEAR ENDED DECEMBER 31, 1997 AND SIX MONTHS ENDED JUNE 30, 1998

(1998 Unaudited)
                                                                        
(Dollar amounts in thousands)

<TABLE>
<CAPTION>

                                                                          ACCUMULATED
                                                                                OTHER
                                    COMMON STOCK    ADDITIONAL           COMREHENSIVE
                               NUMBER OF       PAR     PAID IN  RETAINED      INCOME/
                                  SHARES     VALUE     CAPITAL  EARNINGS       (LOSS)    TOTAL 
----------------------------------------------------------------------------------------------
<S>                            <C>         <C>         <C>       <C>          <C>     <C>                           
BALANCE-DECEMBER 31, 1996      3,346,802   $ 6,694     $ 7,633   $ 5,517      $  (99) $ 19,745 
               
Net income                             -         -           -     3,231           -     3,231 
Cash dividends declared
 ($.30 per share)                      -         -           -    (1,040)          -    (1,040)
Shares issued:
 Stock Option Plan                88,156       176          94         -           -       270 
 Dividend Reinvestment
   and Stock Purchase Plan       146,419       293       1,092         -           -     1,385 
  Changes in unrealized gain on     
    securities available for sale      -         -           -         -         160       160
---------------------------------------------------------------------------------------------- 
                               
BALANCE-DECEMBER 31, 1997      3,581,377     7,163       8,819     7,708          61    23,751 

Net income                                                         1,724                 1,724 
Cash dividend declared
($.20 per share)                                                    (749)                 (749)

Shares issued:              
 Stock Option Plan               164,257       328         665                             993 

Dividend Reinvestment
  and Stock Purchase Plan         21,679        44         264                             308 

Changes in unrealized gain on               
 securities available for sale                                                    17        17
---------------------------------------------------------------------------------------------- 
                              
BALANCE-JUNE 30, 1998          3,767,313   $ 7,535     $ 9,748   $ 8,683       $  78  $ 26,044 
==============================================================================================
</TABLE>

      See accompanying notes to condensed consolidated financial statements.

<PAGE>

WESTBANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
(Dollar amounts in thousands)
<TABLE>
<CAPTION>

                                                                       1998     1997 
------------------------------------------------------------------------------------
<S>																	 <C>      <C>
Operating activities:
 Net income                                                          $1,724   $1,374 
  Adjustments to reconcile net income to net cash provided by
   operating activities:
    Provision for loan losses                                            19      190 
    Depreciation and amortization                                       377      327 
    Provision for other real estate owned                                22       23 
  Changes in assets and liabilities:
                                                                      
(Increase) Decrease in accrued interest receivable                     (214)    (359)
    Realized gain on sale of securities                                (139)         
    Realized (gain) loss on sale of other real estate owned             (30)         
    Realized (gain) loss on sale of equipment                                    (14)
    Increase (decrease) in interest payable on deposits                  88       43 
    (Increase) decrease in other assets                              (1,104)    (216)
    Increase (decrease) in other liabilities                            516      557
------------------------------------------------------------------------------------ 
    Net cash provided by operating activities                         1,259    1,925
------------------------------------------------------------------------------------ 
                                        
Investing activities:           
  Investments and mortgage-backed securities:
   Held to maturity:                                           
    Purchases                                                       (18,485) (13,480)
    Proceeds from maturities and principal payments                  19,891    5,492 
  Available for sale:               
    Purchases                                                       (21,109)  (4,013)
    Proceeds from sales                                               8,607                
    Proceeds from maturities                                          4,005      861 
  Purchases of premises and equipment                                  (926)    (447)
  Net (increase) decrease in loans                                  (20,685) (13,164)
  Proceeds from sale of equipment                                                 14 
  Proceeds from sale of other real estate owned                                   76
------------------------------------------------------------------------------------ 
                           
    Net cash used in investing activities                           (28,702) (24,661)
------------------------------------------------------------------------------------
                                   
Financing activities:
  Net increase (decrease) in other borrowed funds                      (332)   2,009 
  Increase in Federal Home Loan borrowings                            7,000 
  Net increase (decrease) in deposits                                33,092   18,871 
  Proceeds from exercise of stock options and stock purchase plan     1,301      620 
  Dividends paid                                                       (749)    (515)
------------------------------------------------------------------------------------
                                
    Net cash used in financing activities                            40,312   20,985
------------------------------------------------------------------------------------ 
                                   
Increase (decrease) in cash and cash equivalents                     12,869   (1,751)
Cash and cash equivalents at beginning of period                     13,360   23,401
------------------------------------------------------------------------------------ 
                       
Cash and cash equivalents at end of period                          $26,229  $21,650
==================================================================================== 
                                      
Cash paid during the period:
  Interest on deposits and other borrowings                          $5,473   $4,902 
  Income taxes                                                        1,172      950 
  Transfers of loans to other real estate owned                         247       85 

Sales of other real estate owned financed by the bank                   135
</TABLE>
          
                  See notes to consolidated financial statements.
<PAGE>


WESTBANK CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
QUARTER AND SIX MONTHS ENDED JUNE 30, 1998 AND JUNE 30, 1997
(Unaudited)

NOTE A - GENERAL INFORMATION

Westbank Corporation (hereinafter sometimes referred to as
"Westbank" or the "Corporation") is a registered Bank Holding
Company organized to facilitate the expansion and diversification of
the business of Park West Bank and Trust Company (hereinafter
sometimes referred to as "Park West" or the "Bank") into additional
financial services related to banking.  Substantially all operating
income and net income of the Corporation are presently accounted for
by Park West.


NOTE B - CURRENT OPERATING ENVIRONMENT

The Bank operates twelve banking offices located in Hampden County
and also operates a Trust Department providing services normally
associated with holding property in a fiduciary or agency capacity.
A full range of retail banking services are furnished to
individuals, businesses and non-profit organizations.  The
Corporation's primary source of revenue is derived from providing
loans to customers, predominately located in Western Massachusetts.
Pending regulatory approval, the Bank plans to open a full service
office in the town of Southwick, Massachusetts.  The targeted
opening date for this new office is October, 1998.

The Federal Deposit Insurance Corporation Improvement Act of 1991
("FDICIA") imposes significant regulatory restrictions and
requirements on banking institutions insured by the FDIC and their
holding companies.  FDICIA established capital categories into which
financial institutions are placed based on capital level.  Each
capital category establishes different degrees of regulatory
restrictions which can apply to a financial institution.  As of June
30, 1998, Park West's capital was at a level that placed the Bank in
the "well capitalized" category as defined by FDICIA.

FDICIA imposes a variety of other restrictions and requirements on
insured banks.  These include significant regulatory reporting
requirements such as insuring that a system of risk-based deposit
insurance premiums and civil money penalties for inaccurate deposit
assessment reports exists.  In addition, FDICIA imposes a system of
regulatory standards for bank and bank holding company operations,
detailed truth in savings disclosure requirements, and restrictions
on activities authorized by state law but not authorized for
national banks.


NOTE C - MERGER AGREEMENT WITH CARGILL BANCORP, INC.

On July 15, 1998, the Corporation entered into an agreement to
acquire Cargill Bancorp, Inc., which is a Delaware corporation and
the holding company for Cargill Bank, a $47.0 million asset
financial institution headquartered in Putnam, Connecticut.

Under the terms of the agreement, Cargill Bancorp will be merged
into Westbank Corporation.  Cargill Bancorp will retain its local
identity and remain a separate subsidiary of Westbank Corporation.
Each share of Cargill Bancorp common stock will be exchanged for
1.3008 shares of Westbank common stock, provided that the average
closing price of Westbank's common stock during the 20-day pricing
period ending five days before the last regulatory approval is
obtained is greater than or equal to $13.07.  If Westbank's average
closing price is less than $13.07 but greater than or equal to
$12.00, then Cargill Bancorp shareholders will receive shares of
Westbank common stock having a value of $17.00 per share.  Cargill
Bancorp has certain rights to terminate the agreement if Westbank's
average closing price is below $12.00 per share unless Westbank
agrees to deliver shares of Westbank common stock having a value of
$17.00 in exchange for each share of Cargill Bancorp common stock.

The merger is subject to approval of Cargill Bancorp shareholders
and the receipt of regulatory approval.

<PAGE>

NOTE D - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial
statements for the quarter and six months ended June 30, 1998 and
1997 have been prepared in accordance with generally accepted
accounting principles for interim information and with instructions
for Form 10-Q.  Accordingly, they do not include all of the
information and notes required by generally accepted accounting
principles for complete financial statements.  In the opinion of
management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been
included.  Operating results for the quarter and six month period
ended June 30, 1998, are not necessarily indicative of the results
that may be expected for the year ending December 31, 1998.

For further informatimn, please refer to the Consolidated Financial
Statements and footnotes thereto included in the Westbank
Corporation's Annual Report on Form 10-K for the year ended December
31, 1997.


NOTE E - COMMITMENTS AND CONTINGENT LIABILITIES

In the normal course of business, there are outstanding commitments
and contingent liabilities, such as, standby letters of credit and
commitments to extend credit.  As of June 30, 1998 standby letters
of credit amounted to $627,000 and loan commitments were $30,609,055
and unused balances available on home equity lines of credit were
$7,864,233.

Trust Assets - Property with a book value of $115,895,000 at June
30, 1998 held for customers in a fiduciary or agency capacity, is
not included in the accompanying balance sheet since such items are
not assets of the Bank.


NOTE F - STOCKHOLDERS' EQUITY

The FDIC imposes leverage capital ratio requirements for state
non-member Banks.  The Bank's leverage capital ratio as of June 30,
1998 and December 31, 1997 was 7.15% and 7.04%, respectively.  In
addition, the FDIC has established risk-based capital requirements
for insured institutions of, Tier 1 risk-based capital of 4.00% and
total risk-based capital of 8.00%.  The Bank's risk-based capital at
June 30, 1998, for Tier 1 was 10.72% and total risk- based capital
was 11.97%, which meets the FDIC criteria for a well-capitalized
financial institution.

<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS



Chanees in Financial Condition - Total consolidated assets amounted
to $350,922,000 on June 30, 1998, compared to $308,265,000 on
December 31, 1997.  As of June 30, 1998 and June 30, 1997, earning
assets amounted to, respectively, $332,106,000 or 95% of total
assets, and $288,151,000, or 94% of total assets.  Earning assets
increased during the first six months of 1998 as a result of
increases in securities, loans and temporary funds.  Deposits
originated throughout the Bank's branch system, as well as a
$7,000,000, 5 year fixed rate borrowing through the Federal Home
Loan Bank provided the funds to support the increase in earning
assets.


Changes in Results of Operations - For the quarter ended June 30,
1998, net income totaled $885,000 compared to $737,000 for the
quarter ended June 30, 1997.  For the six months ended June 30,
1998, net income was $1,724,000 compared to $1,374,000 for the same
period during 1997.  Included in the results for the six months
ended June 30, 1998 is a gain on the sale of securities available
for sale totaling $139,000.

An overall increase in interest income and interest expense reflects
an increase in volume and decrease in interest rates on earning
assets and an increase in volume and rates on interest-bearing
deposits.  Further analysis is provided in sections on net interest
revenue and supporting schedules.


Allowance for Loan Losses and Non-Performing Assets - The
Corporation did not record a provision for loan losses in the
current quarter compared to $40,000 for the same period in 1997.
Loans written off against the allowance for loan losses after
recoveries amounted to $363,000 for the six months ended June 30,
1998.  During the current quarter the Corporation sold a pool of
classified loans totaling $1,772,000.  As a result of the classified
loan sale the Corporation charged-off $266,000 to the allowance for
loan loss.  The entire loss from the sale of classified loans had
been previously reserved for.

After giving effect to the actions described above, the allowance
for loan losses at June 30, 1998 totaled $2,504,000 or .98% of total
loans, as compared to $2,848,000 or 1.21% at December 31, 1997.

Non-performing past due loans at June 30, 1998 aggregated $492,000
or 0.19% of total loans compared to $1,226,000 or 0.52% at December
31, 1997.  The percentage of non-performing and past due loans
compared to total assets on those same dates, respectively, amounted
to 0.14% and 0.27%.  The change in non-performing loans was
primarily the result of the sale of classified loans described
above.

Other real estate owned at June 30, 1998 totaled $269,000 and stands
at 0.08% of total assets at the end of the current quarter.

Management has made every effort to recognize all circumstances
known at this time which could affect the collectibility of loans
and has reflected these in the provision for loan losses, the write
down of other real estate owned and impaired loans to fair value and
other loans (watch list) monitored by management, the charge-off of
loans and the balance in the allowance for loan losses.  Management
deems that the provision for the quarter, and the balance in the
allowance for loan losses, are adequate based on results provided by
the loan grading system and circumstances known at this time.


Year 2000 Mindful of the need to sustain the integrity of its
computer systems as the year 2000 approaches, the Corporation has
taken steps to ensure that all systems are ready to operate
accurately on and beyond the year 2000.  The Corporation fully
understands the need to prevent disruption of computer and technical
systems, and the Corporation is committed to providing its customers
with high quality service.

<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Year 2000(Continued)

While most of its systems are already year 2000 compliant, the
Corporation has prepared an action plan to ensure the continued
integrity of its systems beyond the turn of the century.  The plan
includes the following five phases:

(1) the awareness phase; (2) the assessment phase; (3) the
renovation phase; (4) the validation phase; and (5) the
implementation phase.  The Corporation is currently in the
renovation and validation phases of the plan and intends to complete
these phases by December 31, 1998.

The Corporation relies on outside providers for its core banking
software and data processing.  The Corporation's plan will apply to
such vendors.  To date, the Bank has incurred approximately $25,000
in year 2000 related expenses, and has estimated that capital
expenditures related to the year 2000 issue will total approximately
$300,000.  The Corporation believes at this time that its efforts
are adequate to address its year 2000 concerns.

The Corporation has designed its plan to address its year 2000
concerns based upon guidance from the Federal Financial Institutions
Examining Council.  In addition, the FDIC monitors the Corporation's
preparation for the year 2000 on a periodic basis.

The information presented with respect to year 2000 compliance is
forward looking information.  As such, it is subject to risks and
uncertainties that would cause actual results to differ materially
from the projected results discussed in this report.


<PAGE>

WESTBANK CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS - (Continued)

NET INTEREST INCOME

The Corporation's earning assets include a diverse portfolio of
earning instruments ranging from the Corporation's core business of
loan extensions to interest-bearing securities issued by federal,
state and municipal authorities.  These earning assets are financed
through a combination of interest-bearing and interest-free sources.

Net interest income, the most significant component of earnings, is
the amount by which the interest generated by assets exceeds the
interest expense on liabilities.

The Corporation analyzes its performance by utilizing the concepts
of interest rate spread and net yield on earning assets.  The
interest rate spread represents the difference between the yield on
earning assets and interest paid on interest-bearing liabilities.
The net yield on earning assets is the difference between the rate
of interest on earning assets and the effective rate paid on all
funds - interest-bearing liabilities, as well as, interest-free
sources (primarily demand deposits and shareholders' equity).

The balances and rates derived for the analysis of net interest
income presented on the following pages reflect the consolidated
assets and liabilities of the Corporation's principal earning
subsidiary, Park West Bank and Trust Company.


(Dollar amounts in thousands)     
<TABLE>
<CAPTION>
                                                QUARTER ENDED            SIX MONTHS ENDED
                                          06-30-98       06-30-97     06-30-98       06-30-97
---------------------------------------------------------------------------------------------
<S> 									                            	  <C>			         <C>		       <C>			         <C>
    Interest and dividend income            $6,264         $5,698      $12,106        $11,126
    Interest expense                         2,982          2,534        5,561          4,945
---------------------------------------------------------------------------------------------
                          
    Net interest income                     $3,282         $3,164       $6,545         $6,181
=============================================================================================
</TABLE>
                         

INTEREST RATE SPREAD AND NET YIELD ON EARNING ASSETS

(Dollar amounts in thousands)
<TABLE>
<CAPTION>
                                 QUARTER ENDED JUNE 30,              SIX MONTHS ENDED JUNE 30,    
                                  1998            1997               1998               1997    
------------------------------------------------------------------------------------------------                                  
                                     
                            Average         Average            Average            Average       
                            Balance  Rate   Balance  Rate      Balance   Rate     Balance   Rate
------------------------------------------------------------------------------------------------
<S>                        <C>       <C>   <C>     	 <C>	  <C>		 <C>	 <C>		<C>
                      
Earning Assets             $317,493  7.89% $279,168  8.16%    $304,277   7.96%   $275,149   8.09%
------------------------------------------------------------------------------------------------
                        
Interest-bearing
  liabilities               260,722  4.57   229,261  4.42%     247,707   4.49     225,941   4.38
------------------------------------------------------------------------------------------------ 
            
Interest rate spread                 3.32            3.74                3.47               3.71
------------------------------------------------------------------------------------------------ 
                     
Interest-free                                         
  resources used to
  fund earning assets        56,771          49,907             56,570             49,208
------------------------------------------------------------------------------------------------
                               
Total Sources of Funds     $317,493  3.76  $279,168  3.63     $304,277   3.66    $275,149   3.59
================================================================================================ 
                         
Net Yield on Earning Assets          4.13%           4.53%               4.30%               4.50%
================================================================================================
</TABLE>

<PAGE>                                                     

WESTBANK CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS - (Continued)


CHANGES IN NET INTEREST INCOME

(Dollar amounts in thousands)


                              QUARTER ENDED 06-30-98   SIX MONTHS ENDED 06-30-98
                                      O V E R                   O V E R       
                              QUARTER ENDED 06-30-97   SIX MONTHS ENDED 06-30-97
-------------------------------------------------------------------------------
                                   CHANGE DUE TO             CHANGE DUE TO      
                               VOLUME    RATE  TOTAL     VOLUME   RATE   TOTAL
-------------------------------------------------------------------------------
Interest Income:
Loans                           $434   $(151)  $283        $749  $(130)    $619 
Securities                       223     (16)   207         402    (38)     364 
Federal funds                     62      14     76         (24)    21       (3)
-------------------------------------------------------------------------------
                             
Total Interest Earned            719    (153)   566       1,127   (147)     980
------------------------------------------------------------------------------- 
                           
Interest Expense:
Interest bearing deposits        285      81    366         390    120      510 
Other Borrowed Funds              64      18     82          86     20      106
------------------------------------------------------------------------------- 
                            
Total Interest Expense          $349    $ 99   $448        $476   $140     $616
------------------------------------------------------------------------------- 
                               
Net Interest Income             $370   $(252)  $118        $651  $(287)    $364
=============================================================================== 
                        

Net interest earned increased by $118,000 during the second quarter
of 1998 compared to the second quarter of 1997.  For the six month
period ended June 30, 1998 net interest income increased by $364,000
versus the same period of 1997.

Average earning assets increased by $29,128,000 during the first six
months of 1998.  The average earning base was $304,277,000 compared
to $275,149,000 in the same period last year.


OPERATING EXPENSES

The components of total operating expenses for the periods and their
percentage of gross income are as follows: (Dollar amounts in
thousands)
<TABLE>
<CAPTION>

                                               QUARTER ENDED                           SIX MONTHS ENDED       
                                       06-30-98             06-30-97             06-30-98           06-30-97 
----------------------------------------------------------------------------------------------------------------   
                                    Amount   Percent    Amount   Percent    Amount   Percent    Amount   Percent
----------------------------------------------------------------------------------------------------------------
<S>                                 <C>        <C>      <C>       <C>       <C>        <C>      <C>        <C>
Salaries and benefits               $1,230     19.64%   $1,139    18.42%    $2,455     18.44%   $2,267     18.71%
Other non-interest expense           1,033     16.50       961    15.54      2,038     15.30     1,903     15.70 
Occupancy - net                        195      3.11       223     3.61        420      3.16       446      3.68
---------------------------------------------------------------------------------------------------------------- 
              
Total Operating Expenses            $2,458     39.25%   $2,323    37.57%    $4,913     36.90%   $4,616     38.09%
================================================================================================================
</TABLE>
                     
For the six month period ended June 30, 1998, operating expenses
increased by approximately $297,000 over the 1997 period.  The
increase was a result of increases in salary and benefits totaling
$188,000 and non-interest expense totaling $135,000.  The increases
are primarily the result of overall growth of the Corporation.

<PAGE>

WESTBANK CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS - (Continued)


CAPITAL RATIOS                        
                                                       6/30/98         6/30/97
------------------------------------------------------------------------------
Ratio of "Tier 1" leverage capital
  to total assets at end of period                       7.42%           6.90%

Regulatory risk-based capital requirements take into account the
different risk categories of banking organizations by assigning risk
weights to assets and the credit equivalent amounts of off-balance
sheet exposures.

In addition, capital is divided into two tiers.  For this
Corporation, Tier 1 includes the common stockholders' equity; Tier
2, or supplementary capital, includes not only the equity, but also,
a portion of the allowance for loan losses, net unrealized
gain/(losses) on securities available for sale are not permitted to
be included for regulatory capital purposes.

The following are the Corporation's risk-based capital ratios at
June 30, 1998:

         Tier 1 Capital (minimum required 4.00%)   11.69%
         Tier 2 Capital (minimum required 8.00%)   12.94%


INTEREST RATE SENSITIVITY

The following table sets forth the distribution of the repricing of
the Corporation's earning assets and interest bearing liabilities as
of June 30, 1998.


(Dollar amounts in thousands)
<TABLE>
<CAPTION>

                              Three  Over Three    Over One       Over
                             Months   Months to     Year to       Five
                            or Less    One Year  Five Years      Years       Total
----------------------------------------------------------------------------------
<S>                         <C>     	<C>		    <C>       <C>         <C>
Earning Assets              $67,643     $38,202     $94,620   $131,641    $332,106     
Interest Bearing
  Liabilities                91,137      86,409      99,768          0     277,314
----------------------------------------------------------------------------------
                          
Interest Rate
  Sensitivity Gap          $(23,494)   $(48,207)    $(5,148)  $131,641     $54,792
==================================================================================
                

Cumulative Interest 
  Rate
  Sensitivity Gap          $(23,494)   $(71,701)   $(76,849)   $54,792             
                                                                            

Interest Rate 
  Sensitivity
  Gap Ratio                   (7.07)%    (14.52)%     (1.55)%    39.64%


Cumulative Interest
  Rate Sensitivity
  Gap Ratio                   (7.07)%    (21.59)%    (23.14)%    16.50%
</TABLE>

<PAGE>


WESTBANK CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS - (Continued)


LIQUIDITY

Cash and due from banks, federal funds sold, investment securities,
mortgage-backed securities and loans available for sale, as compared
to deposits and short term liabilities, are used by the Corporation
to compute its liquidity on a daily basis.  At June 30, 1998, the
Corporation's ratio of such assets to total deposits and borrowed
funds was 22.93%.


PROVISION AND ALLOWANCE FOR LOAN LOSSES

(Dollar amounts in thousands)
<TABLE>
<CAPTION>
                                                 QUARTER ENDED          SIX MONTHS ENDED  
                                               06-30-98  06-30-97     06-30-98     06-30-97
-------------------------------------------------------------------------------------------
<S>                                              <C>       <C>          <C>          <C>
Balance at beginning of period                   $2,852    $2,424       $2,848       $2,481
Provision charged to expense                          0        40           19          190
-------------------------------------------------------------------------------------------               
                                                  2,852     2,464        2,867        2,671
-------------------------------------------------------------------------------------------
                         
Charge-offs:
  Loans secured by real estate                      300       155          340          239
  Commercial and industrial loans                    40        12           47          143
  Consumer loans                                     13        28           24           42
-------------------------------------------------------------------------------------------
                               
                                                    353       195          411          424
-------------------------------------------------------------------------------------------
                              
Recoveries:
  Loans secured by real estate                        2       111           27          130
  Commercial and industrial loans                     0       174           15          175
  Consumer loans                                      3         6            6            8
-------------------------------------------------------------------------------------------
                                 
                                                      5       291           48          313
-------------------------------------------------------------------------------------------
                            
Net charge-offs (recoveries)                        348       (96)         363          111
-------------------------------------------------------------------------------------------
                                        				   
Balance at end of period                         $2,504    $2,560       $2,504       $2,560
===========================================================================================
                             
Net Charge-offs to:
  Average loans                                    1.40%    (.04)%        1.49%         .05%
  Loans at end of period                           1.36%    (.04)%        1.42%         .05%
  Allowance for loan losses                       13.90%   (3.75)%       14.50%        4.34%

Allowance for loan losses
  as a percentage of:
    Average loans                                  1.01%    1.12%         1.03%        1.14%
    Loans at end of period                         0.98%    1.10%         0.98%        1.10%
</TABLE>

The approach the Corporation uses in determining the adequacy of the
allowance for loan losses is the combination of a target reserve and
a general reserve allocation.  Quarterly, based on an internal
review of the loan portfolio, the Corporation identifies required
reserve allocations targeted to recognized problem loans that, in
the opinion of management, have potential loss exposure or questions
relative to the depth of the collateral on these same loans.  In
addition, the Corporation allocates a general reserve against the
remainder of the loan portfolio.

<PAGE>



NON-ACCRUAL, PAST DUE AND RESTRUCTURED LOANS

(Dollar amounts in thousands)
<TABLE>
<CAPTION>

                                     06-30-98  03-31-98  12-31-97  09-30-97  06-30-97
-------------------------------------------------------------------------------------                                     
<S>                                      <C>       <C>     <C>       <C>       <C>    
Non-Accrual Loans:
Loans secured by real estate             $290      $595    $  983    $  897    $1,143
Construction/Land development               3         2         3         0        33
Commercial and Industrial Loans            24        37        37         6       240
Consumer Loans                              0         1        19         9         5
-------------------------------------------------------------------------------------
               
                                         $317      $635    $1,042    $  912    $1,421
-------------------------------------------------------------------------------------                                         
                                 
Loans Contractually
 past due 90 days or more
 still accruing:
Loans secured by real estate             $143      $193    $  170    $  198       $15
Commercial and Industrial Loans            24        24         0        18         0
Consumer Loans                              8         6        14        54        10
-------------------------------------------------------------------------------------
                                 
                                         $175      $223    $  184    $  270       $25
-------------------------------------------------------------------------------------                                         


Total non-accrual, past
 due and restructured loans              $492      $858    $1,226    $1,182    $1,446
-------------------------------------------------------------------------------------      
                                   
Non-accrual, past due and
 restructured loans      
 as a percentage of total loans         0.19%     0.36%     0.52%     0.49%     0.62%
------------------------------------------------------------------------------------- 
                                   
Allowance for loan       
 losses as a percentage of
 non accrual, past due and                                   
 restructured loans                   508.94%   332.40%   232.30%   233.08%   177.04%
------------------------------------------------------------------------------------- 
                                 


Other real estate owned - net           $269       $379      $149      $277      $323
-------------------------------------------------------------------------------------
                               

                                  
Total non-performing assets             $761     $1,237    $1,375    $1,459    $1,769
-------------------------------------------------------------------------------------
                       

Non-performing assets as a
  percentage of total assets           0.22%      0.39%     0.45%     0.45%     0.57%
-------------------------------------------------------------------------------------
</TABLE>                    

<PAGE>


WESTBANK CORPORATION AND SUBSIDIARIES
QUARTERLY TO DATE AVERAGE BALANCES
INTEREST EARNED - INTEREST EXPENSE


(Dollar amounts in thousands)
<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------            
                                                   FOR THE QUARTER ENDED       FOR THE QUARTER ENDED
                                                        JUNE 30, 1998               JUNE 30, 1997           
                                             Balance      Interest   Rate    Balance  Interest    Rate
------------------------------------------------------------------------------------------------------                
<S>                                         <C>             <C>     <C>      <C>        <C>       <C>                     
Federal Funds sold and               
     temporary investments                  $  6,552         $ 113  6.90%     $2,781       $37    5.32%
Securities                                    61,987           999  6.45      48,233       792    6.57 
Loans                                        248,954         5,152  8.28     228,154     4,869    8.54
------------------------------------------------------------------------------------------------------ 
                       

Total earning assets                        $317,493        $6,264  7.89     279,168    $5,698    8.16
------------------------------------------------------------------------------------------------------ 
                                     
Loan loss allowance                           (2,818)                         (2,500)
All other assets                              18,602                          18,128 
------------------------------------------------------------------------------------------------------
                               
TOTAL ASSETS                                $333,277                        $294,796 
======================================================================================================
                     
LIABILITIES AND EQUITY                                       
                                                             
Interest bearing deposits                   $244,182        $2,816  4.61    $219,436    $2,450    4.47 
Borrowed funds                                16,540           166  4.01       9,825        84    3.42
------------------------------------------------------------------------------------------------------ 
                            
Total interest bearing    
   liabilities                               260,722        $2,982  4.57     229,261    $2,534    4.42
------------------------------------------------------------------------------------------------------ 
                               
Interest rate spread                                                3.32%                         3.74%
                                                                                   
Demand deposits                               45,917                          43,037 
Other liabilities                              1,033                           1,687 
Shareholders' equity                          25,605                          20,811 
------------------------------------------------------------------------------------------------------
                                          
TOTAL LIABILITIES
      AND EQUITY                            $333,277                        $294,796 
======================================================================================================      
                           

NET INTEREST INCOME                                         $3,282                      $3,164 
======================================================================================================
                                
Interest Earned/Earning Assets                                      7.89%                         8.16%

Interest Expense/Earning Assets                                     3.76                          3.63
------------------------------------------------------------------------------------------------------ 
                              
Net Yield on Earning Assets                                         4.13%                         4.53%
======================================================================================================
</TABLE>
                                   
<PAGE>                                    




WESTBANK CORPORATION AND SUBSIDIARIES
YEAR TO DATE AVERAGE BALANCES
INTEREST EARNED - INTEREST EXPENSE


(Dollar amounts in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------            
                                                SIX MONTHS ENDED                 SIX MONTHS ENDED      
                                                  JUNE 30, 1998                    JUNE 30, 1997           
                                             Balance      Interest   Rate    Balance   Interest Rate
------------------------------------------------------------------------------------------------------
<S>                                          <C>           <C>       <C>     <C>      <C>       <C>
Federal Funds sold and               		
  temporary investments                       $4,561          $149   6.53%    $5,747  $   152   5.29%
Securities                                    56,844         1,826   6.42     44,426    1,462   6.58 
Loans                                        242,872        10,131   8.34    224,976    9,512   8.46 
                       
------------------------------------------------------------------------------------------------------
Total earning assets                        $304,277       $12,106   7.96    275,149  $11,126   8.09 
------------------------------------------------------------------------------------------------------        
Loan loss allowance                           (2,870)                         (2,518)
All other assets                              18,120                          17,810 
------------------------------------------------------------------------------------------------------  
TOTAL ASSETS                                $319,527                        $290,441 
                     
======================================================================================================
LIABILITIES AND EQUITY                                       

                                                             
Interest bearing deposits                   $234,299        $5,315   4.54   $217,254   $4,805    4.42 
Borrowed funds                                13,408           246   3.67      8,687      140    3.22 
------------------------------------------------------------------------------------------------------                            
Total interest bearing    
   liabilities                               247,707        $5,561   4.49    225,941   $4,945    4.38 
------------------------------------------------------------------------------------------------------         
Interest rate spread                                                 3.47%                       3.71%
                                                                                       
Demand deposits                               45,609                          42,457 
Other liabilities                              1,032                           1,564 
Shareholders' equity                          25,179                          20,479 
------------------------------------------------------------------------------------------------------             
TOTAL LIABILITIES
      AND EQUITY                            $319,527                        $290,441 
======================================================================================================                           

NET INTEREST INCOME                                         $6,545                     $6,181 
                         
======================================================================================================
Interest Earned/Earning Assets                                      7.96%                        8.09%
															     
Interest Expense/Earning Assets                                     3.66                         3.59 
------------------------------------------------------------------------------------------------------               
Net Yield on Earning Assets                                         4.30%                        4.50%
======================================================================================================
</TABLE>                                               
<PAGE>

WESTBANK CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION



ITEM 1.   Legal Proceedings - None


ITEM 2.   Changes in Rights of Securities Holders - None


ITEM 3.   Defaults by Company on its Senior Securities - None


ITEM 4.   Results of Votes on Matters Submitted to a Vote of Security
          Holders - None


ITEM 5.   Other Events

          Information Concerning Forward-Looking Statements.

          Westbank has made and may make in the future forward
          looking statements concerning future performance, including
          but not limited to future earnings, and events or
          conditions which may affect such future performance.  These
          forward looking statements are based upon management's
          expectations and belief concerning possible future
          developments and the potential effect of such future
          developments on Westbank.  There is no assurance that such
          future developments will be in accordance with management's
          expectations and belief or that the effect of any future
          developments on Westbank will be those anticipated by
          Westbank management.

          All assumptions that form the basis of any forward looking
          statements regarding future performance, as well as events
          or conditions which may affect such future performance, are
          based on factors that are beyond Westbank's ability to
          control or predict with precision, including future market
          conditions and the behavior of other market participants.
          Among the factors that could cause actual results to differ
          materially from such forward looking statements are the
          following:

          1.  The status of the economy in general, as well as in
              Westbank's prime market area, Western Massachusetts;

          2.  The recovery of the real estate market in Western
              Massachusetts;

          3.  Competition in Westbank's prime market area from other
              banks, especially in light of continued consolidation
              in the New England banking industry.

          4.  Any changes in federal and state bank regulatory requirements;

          5.  Changes in interest rates; and

          6.  The cost and other effects of unanticipated legal and
              administrative cases and proceedings, settlements and
              investigations.

              While Westbank periodically reassesses material trends
              and uncertainties affecting the Corporation's
              performance in connection with its preparation of
              management's discussion and analysis of results of
              operations and financial condition contained in its
              quarterly and annual reports, Westbank does not intend
              to review or revise any particular forward looking
              statement in light of future events.
<PAGE>


ITEM 6.   Exhibits and Reports on Form 8

a.   Exhibits
                                EXHIBIT INDEX 
 
                                                                      Page No.
 
 
      3.1  Articles of Organization, as amended                           *
  
      3.2  By-Laws, as amended                                           **
  

      27.  Financial Data Schedule                           TO BE INCLUDED

      *    Incorporated by reference to identically numbered exhibits
           contained in Registrant's Annual Report on Form 10-K for
           the year ended December 31, 1988
  
      **   Incorporated by reference in exhibit 5.1 contained in the
           Registrant's Current Report filed on February 2, 1998.

b.    Reports on Form-8 - On July 15, 1998 the Registrant filed a
      Curent Report on Form 8-K regarding the proposed acquisition of
      Cargill Bancorp, Inc.  and Cargill Bank.

<PAGE>      
        
          
            
                WESTBANK CORPORATION AND SUBSIDIARIES



Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Quarterly Report to be signed on
its behalf by the undersigned thereunto duly authorized.








                                     WESTBANK CORPORATION               






Date:   August 10, 1998              /s/Donald R. Chase
                                     Donald R. Chase                          
                                     President and Chief Executive Officer









Date:   August 10, 1998              /s/John M. Lilly
                                     John M. Lilly                             
                                     Treasurer and Chief Financial Officer