Securities and Exchange Commission
                         Washington, DC  20549

                              FORM 10-Q


[X]  Quarterly Report pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934

                 For the period ended:  June 30, 1998     

                                  or

[  ] Transition Report pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934

For the transition period from           to          


                Commission File Number:  0-24033

                        NASB Financial, Inc.
         (Exact name of registrant as specified in its charter)

         Missouri                                43-1805201  
(State or other jurisdiction of                (IRS Employer
 incorporation or organization)               Identification No.)


   12498 South 71 Highway, Grandview, Missouri         64030
    (Address of principal executive offices)         (Zip Code)


                            (816) 765-2200
         (Registrant's telephone number, including area code)


                                 N/A
(Former name, former address and former fiscal year, if changed since 
last report)

     Indicate by check mark whether the Registrant (1) has filed all 
reports required to be filed by 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___

     The number of shares of Common Stock of the Registrant outstanding 
as of August 13, 1998, was 2,230,922.

<PAGE>
NASB Financial, Inc.
Consolidated Balance Sheets 
(In thousands)
<TABLE>
<CAPTION>
                                         (Unaudited)
                                           June 30,      September 30,   
                                             1998            1997 
                                         -----------      ----------  
<S>                                       <C>              <C>
ASSETS
Cash and cash equivalents                 $   2,578        $   3,267
Securities Available for sale                11,432           22,152
Mortgage-backed securities:
   Available for sale                        18,427           21,263
   Held to maturity (estimated fair 
     value of $26,716 and $30,920 at
     June 30, 1998, and September 30,
     1997, respectively)                     25,865           30,016
Loans receivable:
   Held for sale (estimated fair
     value of $139,581 and $141,502
     at June 30, 1998, and September
     30, 1997, respectively                 133,898          138,869
   Held for investment, net                 516,016          497,873
Accrued interest receivable                   4,546            4,723
Real estate owned, net                        2,193            4,184
Premises and equipment                        4,900            5,308
Other assets                                  6,852            5,809
                                         ----------       ----------
        Total assets                      $ 726,707        $ 733,464
                                         ==========       ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Customer deposit accounts                 $ 542,012        $ 520,544
Advances from Federal Home Loan Bank        109,214          143,226
Other notes payable                             200            1,680
Escrows                                       4,022            6,054
Accrued expenses and other liabilities        4,258            2,764
                                         ----------       ----------
        Total liabilities                   659,706          674,268
                                         ----------       ----------
Stockholders' equity:
Common stock of $1.00 par value:
   3,000,000 authorized; 2,333,828
   outstanding at June 30, 1998, and
   2,325,569 outstanding at September
   30, 1997                                   2,334            2,326
Additional paid-in capital                   12,262           12,198
Retained earnings                            56,009           48,064
Treasury stock, at cost; 102,629
   shares at June 30, 1998, and 89,327
   shares at September 30, 1997              (3,754)          (2,963)
Unrealized net gain (loss) on
   securities available for sale                150             (429)
                                         ----------       ----------
        Total stockholders' equity           67,001           59,196
                                         ----------       ----------
                                          $ 726,707        $ 733,464 
                                         ==========       ==========
</TABLE>
See accompanying notes to consolidated financial statements.

<PAGE>
NASB Financial, Inc.
Consolidated Statements of Income (Unaudited) 
(In thousands, except per share data)
<TABLE>
<CAPTION>
                                                  Three months ended
                                                       June 30,
                                             --------------------------
                                                 1998          1997
                                             ------------  ------------
<S>                                             <C>           <C>
Interest on loans                               $ 14,397      $ 13,457
Interest on mortgage-backed securities               738           979
Interest and dividends on investments                366           290
Other interest income                                105            49
                                                 --------      --------
   Total interest income                          15,606        14,775
                                                 --------      --------
Interest on customer deposit accounts              6,776         6,462
Interest on advances and notes payable             1,733         2,184
                                                 --------      --------
   Total interest expense                          8,509         8,646
                                                 --------      --------
   Net interest income                             7,097         6,129
Provision for loan losses                             62           173
                                                 --------      --------
   Net interest margin after provision
      for loan losses                              7,035         5,956
                                                 --------      --------
Other income (expense):
  Loan servicing fees                                  9           279
  Customer service fees and charges                  491           375
  Real estate owned revenue, net                      (6)           55
  Income from mortgage banking operations            528           511
  Gain (loss) on sale of assets available
    for sale                                         (14)           --
  Gain on sale of loans held for sale              1,180           892
  Other                                              289           246
                                                 --------      --------
     Total other operating income                  2,477         2,358
                                                 --------      --------
General and administrative expenses: 
 Compensation and fringe benefits                  2,560         2,221
  Premises and equipment expense                     587           558
  Advertising and business promotion                 111           121
  Federal deposit insurance premiums                  82            80
  Other                                              959           788
                                                 --------      --------
     Total general and administrative              4,299         3,768
                                                 --------      --------
  Income before income taxes                       5,213         4,546
Income tax expense                                 2,037         1,750
                                                 --------      --------
     Net Income                                 $  3,176      $  2,796
                                                 ========      ========
Basic earnings per share                        $   1.42      $   1.24
                                                 ========      ========
Diluted earnings per share                      $   1.39      $   1.20
                                                 ========      ========
Weighted average shares outstanding             2,232,513     2,251,688


<CAPTION>
                                                  Nine months ended
                                                       June 30,
                                             --------------------------
                                                 1998          1997
                                             ------------  ------------
<S>                                             <C>           <C>
Interest on loans                               $ 43,049      $ 40,468
Interest on mortgage-backed securities             2,410         2,671
Interest and dividends on investments              1,071           711
Other interest income                                382           232
                                                 --------      --------
   Total interest income                          46,912        44,082
                                                 --------      --------
Interest on customer deposit accounts             20,161        19,207
Interest on advances and notes payable             5,902         6,862
                                                 --------      --------
   Total interest expense                         26,063        26,069
                                                 --------      --------
   Net interest income                            20,849        18,013
Provision for loan losses                            377           408
                                                 --------      --------
   Net interest margin after provision
      for loan losses                             20,472        17,605
                                                 --------      --------
Other income (expense):
  Loan servicing fees                                342           645
  Customer service fees and charges                1,398         1,126
  Real estate owned revenue, net                      47           263
  Income from mortgage banking operations          1,942         1,696
  Gain (loss) on sale of assets available
    for sale                                         (24)          193
  Gain on sale of loans held for sale              2,576         1,697
  Other                                            1,140           493
                                                 --------      --------
     Total other operating income                  7,421         6,113
                                                 --------      --------
General and administrative expenses: 
 Compensation and fringe benefits                  7,490         6,432
  Premises and equipment expense                   1,707         1,626
  Advertising and business promotion                 250           234
  Federal deposit insurance premiums                 247           401
  Other                                            2,688         2,263
                                                 --------      --------
     Total general and administrative             12,382        10,956
                                                 --------      --------
  Income before income taxes                      15,511        12,762
Income tax expense                                 6,001         4,912
                                                 --------      --------
     Net Income                                 $  9,510      $  7,850
                                                 ========      ========
Basic earnings per share                        $   4.25      $   3.48
                                                 ========      ========
Diluted earnings per share                      $   4.15      $   3.35
                                                 ========      ========
Weighted average shares outstanding             2,236,509     2,255,806

</TABLE>
See accompanying notes to consolidated financial statements.

<PAGE>

NASB Financial, Inc.
Consolidated Statements of Stockholders' Equity
(In thousands)

<TABLE>
<CAPTION>
                                              Additional                          Unrealized     Total
                                   Common      paid-in     Retained    Treasury      gains    Stockholders'
                                    Stock      Capital     Earnings     Stock       (losses)     equity
                                -------------------------------------------------------------------------
<S>                             <C>          <C>          <C>         <C>         <C>          <C>
Balance at September 30, 1997   $  2,236       12,198       48,064      (2,963)       (429)      59,196
  Change in unrealized gains
    (losses) net of income
    taxes of $362                     --           --           --          --         579          579        
  Cash dividends declared             --           --       (1,565)         --          --       (1,565)
  Stock options exercised              8           64           --          --          --           72
  Purchase of common stock
    for treasury                      --           --           --        (791)         --         (791)
  Net income for:
    First fiscal quarter              --           --        3,132          --          --        3,132
    Second fiscal quarter             --           --        3,202          --          --        3,202
    Third fiscal quarter              --           --        3,176          --          --        3,176
                                -------------------------------------------------------------------------
Balance at June 30, 1998        $  2,334       12,262       56,009      (3,754)        150       67,001
                                =========================================================================

</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>
NASB Financial, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

<TABLE>
<CAPTION>
                                                                Three months ended
                                                                     June 30,
                                                          --------------------------
                                                               1998          1997
                                                           ------------  ------------
<S>                                                         <C>           <C>
Cash flows from operating activities:
 Net Income                                                 $  3,176      $  2,796
 Adjustments to reconcile net income to net cash 
  provided by (used in) operating activities:
   Increase (decrease) in accrued interest receivable              7          (271)
   Depreciation                                                  267           273
   Amortization and accretion                                    (84)         (258)
   (Gain) loss on sale of assets available for sale               14            --
   Gain on sale of loans held for sale                        (1,156)         (892)
   Income from mortgage banking operation                       (528)         (511)
   Provision for loan losses                                      63           173
   Provision for REO losses                                       12           (23)
 Increase (decrease) in accrued expenses and other
   liabilities                                                   576        (1,490)
 Loans originated for sale - servicing released              (27,054)      (19,416)
 Sale of loans - servicing released                           26,522        20,049
 Loans originated for sale - servicing retained              (70,583)      (32,194)
 Sale of loans - held for sale                                67,738            --
                                                            ---------     ---------
    Net cash used in operations                               (1,030)      (31,764)
Cash flows from investing activities:
 Principal repayments of mortgage-backed securities:
   Held to maturity                                            1,597         1,156
   Available for sale                                          2,019         1,073
 Principal repayments of mortgage loans                       56,238        38,662
 Principal repayments of other loans                           5,054         2,508
 Principal repayments of securities:
   Held to maturity                                               --         8,000
   Available for sale                                             --            --
 Loan origination - mortgage loans                           (50,540)      (70,235)
 Loan origination - other loans                               (5,424)       (6,772)
 Purchase of mortgage loans                                   (9,077)       (6,078)
 Purchase of mortgage-backed securities:
   Held to maturity                                               --        (9,826)
   Available for sale                                             --       (28,000)
 Purchase of investment securities:
   Held to maturity                                               --            --
   Available for sale                                         (3,902)           --
 Proceeds from sale of mortgage-backed securities
   Available for sale                                             --        62,713
 Proceeds from sale of investment securities
   Available for sale                                         10,719            --
 Equipment purchases, net of sales                              (101)         (367)
 Other cash flows from investing activities                      898           491
                                                            ---------     ---------
   Net cash provided by (used in) investing activities         7,481        (6,675)

Cash flows from financing activities:
 Net increase in customer deposits                            13,049        13,085
 Additional advances from FHLB                               110,000       219,000
 Repayment of advances from FHLB                            (134,004)     (186,000)
 Cash dividends paid                                            (585)         (451)
 Repurchase of common stock                                     (724)         (894)
 Issuance of notes payable                                        --           250
 Repayment of notes payable                                       --            --
 Net increase (decrease) in escrows                              701           810
                                                            ---------     ---------
    Net cash provided by (used in) financing activities      (11,536)       45,800
                                                            ---------     ---------
    Net increase (decrease) in cash and cash equivalents      (5,085)        7,361
Cash and cash equivalents at beginning of the period           7,663         4,056
                                                            ---------     ---------
Cash and cash equivalents at end of period                  $  2,578        11,417
                                                            =========     =========
Supplemental disclosure of cash flow information:
  Cash paid for income taxes (net of tax refunds)           $  2,322         3,462
  Cash paid for interest                                       8,527         9,846
Supplemental disclosure of non-cash investing 
 and financing activities:
  Conversion of loans to real estate owned                     1,889           217
  Conversion of real estate owned to loans                        --            --
  Conversion of mortgage loans held for sale to 
    mortgage-backed securities available for sale             69,777        32,194
  Capitalization of originated mortgage servicing rights       1,843         1,260


<CAPTION>
                                                                Nine months ended
                                                                     June 30,
                                                          --------------------------
                                                               1998          1997
                                                           ------------  ------------
<S>                                                         <C>           <C>
Cash flows from operating activities:
 Net Income                                                 $  9,510      $  7,850
 Adjustments to reconcile net income to net cash 
  provided by (used in) operating activities:
   Increase (decrease) in accrued interest receivable            176          (221)
   Depreciation                                                  773           773
   Amortization and accretion                                 (1,072)         (704)
   (Gain) loss on sale of assets available for sale               24            --
   Gain on sale of loans held for sale                        (2,552)       (1,890)
   Income from mortgage banking operation                     (1,942)       (1,696)
   Provision for loan losses                                     377           408
   Provision for REO losses                                       69          (194)
 Increase (decrease) in accrued expenses and other
   liabilities                                                 1,426        (4,091)
 Loans originated for sale - servicing released              (92,963)      (66,621)
 Sale of loans - servicing released                           96,149        67,650
 Loans originated for sale - servicing retained             (183,565)      (87,788)
 Sale of loans - held for sale                               152,636        50,595
                                                            ---------     ---------
    Net cash used in operations                              (20,954)      (35,929)
Cash flows from investing activities:
 Principal repayments of mortgage-backed securities:
   Held to maturity                                            4,143         3,466
   Available for sale                                         10,926         2,826
 Principal repayments of mortgage loans                      160,955       105,575
 Principal repayments of other loans                          12,375         7,945
 Principal repayments of securities:
   Held to maturity                                               --        16,000
   Available for sale                                             32            30
 Loan origination - mortgage loans                          (132,643)     (154,023)
 Loan origination - other loans                              (13,592)      (13,778)
 Purchase of mortgage loans                                  (18,643)      (16,872)
 Purchase of mortgage-backed securities:
   Held to maturity                                               --        (9,826)
   Available for sale                                             --       (28,000)
 Purchase of investment securities:
   Held to maturity                                               --       (16,782)
   Available for sale                                         (5,147)           --
 Proceeds from sale of mortgage-backed securities
   Available for sale                                             --       115,595
 Proceeds from sale of investment securities
   Available for sale                                         15,811            --
 Equipment purchases, net of sales                              (364)         (675)
 Other cash flows from investing activities                    4,825         1,508
                                                            ---------     ---------
   Net cash provided by (used in) investing activities        38,678        12,989

Cash flows from financing activities:
 Net increase in customer deposits                            21,468         9,655
 Additional advances from FHLB                               124,000       452,000
 Repayment of advances from FHLB                            (158,012)     (436,012)
 Cash dividends paid                                          (1,566)       (1,256)
 Repurchase of common stock                                     (791)       (1,378)
 Issuance of notes payable                                        --           250
 Repayment of notes payable                                   (1,480)         (135)
 Net increase (decrease) in escrows                           (2,032)       (1,656)
                                                            ---------     ---------
    Net cash provided by (used in) financing activities      (18,413)       21,468
                                                            ---------     ---------
    Net increase (decrease) in cash and cash equivalents        (689)       (1,472)
Cash and cash equivalents at beginning of the period           3,267        12,889
                                                            ---------     ---------
Cash and cash equivalents at end of period                  $  2,578        11,417
                                                            =========     =========
Supplemental disclosure of cash flow information:
  Cash paid for income taxes (net of tax refunds)           $  5,687         5,237
  Cash paid for interest                                      26,185        26,222
Supplemental disclosure of non-cash investing 
 and financing activities:
  Conversion of loans to real estate owned                     2,955           979
  Conversion of real estate owned to loans                        --            --
  Conversion of mortgage loans held for sale to 
    mortgage-backed securities available for sale            159,285        87,788
  Capitalization of originated mortgage servicing rights       3,970         1,685
   
 
</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>

(1) BASIS OF PRESENTATION

     The accompanying unaudited consolidated financial statements are 
prepared in accordance with generally accepted accounting principles 
("GAAP") for interim financial information.  Accordingly, they do not 
include all of the information and footnotes required by GAAP for 
complete financial statements.  All adjustments are of a normal and 
recurring nature and, in the opinion of management, the statements 
include all adjustments considered necessary for fair presentation.  
Operating results for the three months and nine months ended June 30, 
1998, are not necessarily indicative of the results that may be expected 
for the fiscal year ended September 30, 1998.

     In preparing the financial statements, management is required to 
make estimates and assumptions that affect the reported amounts of 
assets and liabilities as of the date of the balance sheet and revenues 
and expenses for the period.  Material estimates that are particularly 
susceptible to significant change in the near-term relate to the 
determination of the allowances for losses on loans and real estate 
owned.  While management believes that these allowances are adequate, 
future additions to the allowances may be necessary based on changes in 
economic conditions.

(2) REORGANIZATION AND MERGER

     On April 1, 1998, NASB Financial, Inc. (the "Company") completed a 
transaction whereby North American Savings Bank, F.S.B. (the "Bank") 
became a wholly-owned subsidiary of the Company, through a merger of the 
Bank with and into NASB Interim Savings Bank, F.S.B., a federally 
chartered stock savings bank formed solely to facilitate this 
transaction.  

     To complete the transaction, the Company issued an aggregate of 
2,375,112 shares of Company common stock by exchanging one share of the 
Company common stock for each share of common stock of the Bank.  It 
also exchanged an option to purchase one share of Company common stock 
for each outstanding option to purchase one share of the Bank's common 
stock.  

     The resulting Bank from the merger continues to operate under the 
name "North American Savings Bank, F.S.B."  The transaction was intended 
to qualify as a tax-deferred reorganization under the Internal Revenue 
Code of 1986, as amended, providing certain tax-deferred benefits for 
income tax purposes for Bank stockholders.  The merger was accounted for 
as a pooling of interests, and accordingly, the accompanying financial 
information has been restated to include the accounts of the Bank and 
the Company for all periods presented.

(3) SECURITIES AVAILABLE FOR SALE

     Summaries of securities and mortgage-backed securities available 
for sale are provided in the following tables. 


<TABLE>
<CAPTION>
                                                              June 30, 1998
                                                          (Dollars in thousands)
                                      ------------------------------------------------------------
                                                    Gross       Gross      Estimated    Weighted
                                      Amortized   unrealized  unrealized     fair       average
                                         cost       gains       losses       value        yield
                                      ----------  ----------  -----------  ----------   ---------
<S>                                   <C>         <C>         <C>          <C>          <C>
Securities:
  Taxable municipal obligations       $  1,605          --            7        1,598       8.18%
  FHLB stock                             5,961          --           --        5,961       7.00%
  Preferred stock in Real Estate 
    Investment Trust                     2,738          --           --        2,738      10.00%
  FHA debentures                         1,138           1            4        1,135       6.66%
Mortgage-backed securities:
  FHLMC participation certificates:
    Balloon and adjustable rate              7          --           --            7       5.25%
    FNMA pass-through certificates
      - fixed rate                       8,673           4           44        8,633       5.95%
    Pass through certificates
      guaranteed by	 GNMA 
      - balloon and adjustable           6,212          23           --        6,235       5.34%
    Mortgage-backed derivatives 
      (including CMO residuals and	
        interest-only securities)        3,284         297           29        3,552         --
                                      -----------------------------------------------
           Total                      $ 29,618         325           84       29,859	
                                       ===============================================
</TABLE>


(4) MORTGAGE-BACKED SECURITIES HELD TO MATURITY

     The following table presents a summary of mortgage-backed 
securities:


<TABLE>
<CAPTION>
                                                                   June 30, 1998
                                                               (Dollars in thousands)
                                          ---------------------------------------------------------------
                                          Current              Gross      Gross      Estimated   Weighted
                                             face    Carrying  unrealized unrealized     fair      average
                                           value     value     gains      losses       value      yield
                                          -------  ---------  ---------  ---------   ---------   --------
<S>                                       <C>      <C>        <C>        <C>         <C>         <C>    
FHLMC participation certificates:
  Fixed rate                              $ 4,125     4,151        165        11        4,305       8.06%
  Balloon maturity and adjustable rate      8,738     8,673         95        --        8,768       6.64%
FNMA pass-through certificates:
  Fixed rate                                  619       623         --         7          616       5.74%
  Balloon maturity and adjustable rate        944       944         --         5          939       6.79%
Pass-through certificates guaranteed
   by GNMA - fixed rate                       557       568         35        --          603       8.69%
Collateralized mortgage obligation bonds    4,209     3,960        169         3        4,126       8.51%
Other asset-backed securities               7,069     6,946        413        --        7,359       9.45%
                                          ---------------------------------------------------------------
        Total                             $26,261    25,865        877        26       26,716       7.94%
                                          ===============================================================

</TABLE>


(5) LOANS RECEIVABLE

     Loans receivable are as follows:

<TABLE>
<CAPTION>
                                               (In thousands)
                                        ---------------------------
                                         June 30,      September 30,
                                           1998            1997
                                        ----------      ----------
<S>                                      <C>             <C>
LOANS HELD FOR INVESTMENT:
Mortgage loans:
  Permanent loans on:
     Residential properties              $ 311,767       $ 300,934
     Business properties                    78,206          92,477
     Partially guaranteed by VA or
       insured by FHA                       25,058          23,240
  Construction and development             139,746         102,131
                                          ---------       ---------
        Total mortgage loans               554,777         518,782
Commercial loans                             7,503          10,973
Installment loans                           24,946          22,071
                                          ---------       ---------
        Total loans held for investment    587,226         551,826
Less:
  Undisbursed loan funds                   (57,585)        (40,540)
  Unearned discounts and fees, net          (6,968)         (7,141)
  Allowance for losses on loans             (6,657)         (6,272)
                                          ---------       ---------
        Net loans held for investment    $ 516,016       $ 497,873
                                          =========       =========
LOANS HELD FOR SALE:
Mortgage Loans:
  Permanent loans on:
     Residential properties              $ 143,489       $ 149,306
     Partially guaranteed by VA or
       insured by FHA                        2,486           2,550
                                          ---------       ---------
        Total loans held for sale          145,975         151,856
Less:
  Undisbursed loan funds                   (12,041)        (12,577)
  Unearned discounts and fees, net             (36)           (410)
                                          ---------       ---------
        Net loans held for sale          $ 133,898       $ 138,869
                                          =========       =========
</TABLE>
 
     Included in the loans receivable balances at June 30, 1998, and 
September 30, 1997, are participating interests in mortgage loans and 
wholly owned mortgage loans serviced by other institutions in the 
approximate amounts of $6.3 million and $9.0 million, respectively.

     Loans and participations serviced for others amounted to 
approximately $423.2 million and $454.2 million at June 30, 1998, and 
September 30, 1997, respectively.


(6) REAL ESTATE OWNED AND OTHER REPOSSESSED PROPERTY

     Real estate owned and other repossessed property consisted of the 
following:

<TABLE>
<CAPTION>
                                               (In thousands)
                                        ---------------------------
                                         June 30,      September 30,
                                           1998            1997
                                        ----------      ----------
<S>                                      <C>             <C>
Real estate acquired through (or deed
  in lieu of) foreclosure                $   5,623       $   5,864
Less: allowance for losses                  (3,430)         (1,680)
                                          ---------       ---------
        Total                            $   2,193       $   4,184
                                          =========       =========
</TABLE>

     The Bank carries real estate owned at fair value, which is the 
lower of  a) current market value minus estimated costs to sell or  b) 
cost established at the time of foreclosure.


(7) MORTGAGE SERVICING RIGHTS

     On January 1, 1997, the Bank adopted SFAS No. 125, "Accounting for 
Transfers and Servicing of Financial Assets and Extinguishment of 
Liabilities."  SFAS No. 125 is required to be applied to transfers of 
assets occurring after January 1, 1997.  Among other things, this 
Statement establishes a clear distinction between transactions that are 
considered sales of assets and those that are considered financing 
arrangements.  According to the Statement, asset sales must meet 
prescribed tests, which show that financial control of the asset has 
been transferred to the buyer.  If the transaction does not meet these 
prescribed tests, the transaction is recorded as a financing activity, 
and the asset remains on the balance sheet of the seller.  The 
implementation of this part of the Statement had no material impact on 
Bank.

     The Bank is most affected by the provision of this Statement that 
requires the recognition of all servicing assets at the time that 
mortgage loans are sold with servicing retained.  Prior to this 
Statement, the Bank recognized a gain or loss only for any servicing 
value in excess of stated contractual amounts at the time of loan sale 
("excess servicing").  The excess servicing value was recorded as an 
asset and amortized as an offset to servicing income over the lives of 
the related mortgage loans.

     SFAS No. 125 now requires the Bank to calculate and recognize all 
retained servicing value (including "normal" servicing) at the time of a 
loan sale in which servicing is retained.  These amounts for normal 
originated mortgage servicing rights ("OMSRs") are recorded as assets 
and amortized as offsets to future servicing income.  Impairment of 
OMSRs is assessed based on the fair value of the rights on a pool by 
pool basis.  Fair values are estimated using discounted cash flows based 
on a market rate of interest.

     In accordance with the Statement, servicing fees recognized in 
excess of normal servicing fees are carried as interest-only strip 
securities and classified as available for sale in accordance with SFAS 
No. 115.  Also, all previous amounts carried as excess servicing assets 
were combined and reclassified as interest-only strip securities.  At 
June 30, 1998, the Bank had such interest-only strip securities in the 
amount of $3.3 million, classified as available for sale.


(8) RECENTLY ISSUED ACCOUNTING STANDARDS

     Effective during the current fiscal year ended September 30, 1998, 
the Company has adopted SFAS No. 128, "Earnings per share."  This 
Statement simplifies the standards for computing and presenting earnings 
per share and  replaces previously reported primary and fully diluted 
earnings per share with basic and diluted earnings per share.    Unlike 
primary earnings per share, basic earnings per share excludes any 
dilutive effects of options, warrants and convertible securities.  
Accordingly, net earnings per share for all periods presented have been 
restated to conform to the new standard.  Note 9 to the consolidated 
financial statements provides a reconciliation of basic earnings per 
share and diluted earnings per share.

     SFAS No. 130, "Reporting of Comprehensive Income," will be 
effective for the Company's fiscal year ended September 30, 1999.  This 
Statement establishes standards for the reporting and presentation of 
comprehensive income and its components (revenues, expenses, gains, and 
losses) in a full set of general-purpose financial statements.  The 
Statement requires that all items that are required to be recognized 
under accounting standards as components of comprehensive income be 
reported in a financial statement that is displayed with the same 
prominence as other financial statements.  Although it does not require 
a specific format for presentation, it does require that the Company 
display an amount representing total comprehensive income for the period 
in that financial statement.  Management does not believe that 
implementation of this Statement will have a material impact on the 
Company's consolidated financial statements. 

     SFAS No. 131, "Disclosures about Segments of an Enterprise and 
Related Information," will be effective for the Company's fiscal year 
1999 financial statements.  This Statement establishes standards for the 
way that the Company will report information about its operating 
segments in interim and annual financial statements.  It also 
establishes standards for related disclosures about products and 
services, geographic areas, and major customers.  Management does not 
believe that implementation of this Statement will have a material 
impact on the Company's financial statements, however, certain 
additional financial statement disclosures will be required.

     In June 1998, SFAS No. 133, "Accounting for Derivative Instruments 
and Hedging Activities", was issued.  This Statement will be effective 
for the Company's fiscal year ended September 30, 2001.  SFAS 133 
requires companies to record derivative instruments as assets or 
liabilities, measured at fair value.  The recognition of gains or losses 
resulting from changes in the values of those derivative instruments is 
based on the use of each derivative instrument and whether it qualifies 
for hedge accounting.  The key criterion for hedge accounting is that 
the hedging relationship must be highly effective in achieving 
offsetting changes in fair value or cash flows.  Management does not 
believe that the implementation of this Statement will have a material 
impact on the Company's consolidated financial statements. 

(9) RECONCILIATION OF BASIC EARNINGS PER SHARE TO DILUTED EARNINGS PER 
SHARE

     The following table presents a reconciliation of basic earnings per 
share to diluted earnings per share for the periods indicated.  Amounts 
are presented in thousands, except share and per share data.


<TABLE>
<CAPTION>
                                     Three months ended 6/30/98         Nine months ended 6/30/98
                                  -------------------------------    -------------------------------
                                                        Per-share                          Per-share
                                   Income    Shares      Amount       Income     Shares     Amount
                                  --------  ---------   ---------    --------  ----------  ---------
<S>                               <C>       <C>         <C>          <C>       <C>         <C>
Basic earnings per share          $ 3,176   2,232,513   $   1.42     $ 9,510   2,236,509   $   4.25
                                                        =========                          =========
Effect of dilutive securities:
  Stock options                                50,272                             55,374	
                                  -------------------                -------------------
Diluted earnings per share        $ 3,176   2,282,785    $  1.39     $ 9,510   2,291,883    $  4.15
                                  ==============================     =============================== 

<CAPTION>
                                     Three months ended 6/30/97         Nine months ended 6/30/97
                                  -------------------------------    -------------------------------
                                                        Per-share                          Per-share
                                   Income    Shares      Amount       Income     Shares     Amount
                                  --------  ---------   ---------    --------  ----------  ---------
<S>                               <C>       <C>         <C>          <C>       <C>         <C>
Basic earnings per share          $ 2,796   2,251,688   $   1.24     $ 7,850   2,255,806   $   3.48
                                                        ========                           =========
Effect of dilutive securities:							
  Stock options                                73,175                             85,123	
                                  -------------------                -------------------
Diluted earnings per share        $ 2,796   2,324,863   $   1.20     $ 7,850   2,340,929   $   3.35
                                  ==============================     ===============================

</TABLE>


     The dilutive securities included for each period presented above 
consist entirely of stock options granted to employees as incentive 
stock options under Section 442A


Item 2.  Management's Discussion and Analysis of Financial Condition and 
Results of Operations.

GENERAL

     The principal business of the Company is to provide banking 
services through the Bank.  Specifically, the Bank obtains savings and 
checking deposits from the public, then uses those funds to originate 
and purchase real estate loans and other loans. The Bank also purchases 
mortgage-backed securities ("MBS") and other investment securities from 
time to time as conditions warrant.  In addition to customer deposits, 
the Bank obtains funds from the sale of loans held-for-sale, the sale of 
securities available-for-sale, repayments of existing mortgage assets, 
and advances from the Federal Home Loan Bank ("FHLB").  The Bank's 
primary sources of income are interest on loans, MBS, and investment 
securities plus customer service fees and income from mortgage banking 
activities.  Expenses consist primarily of interest payments on customer 
deposits and other borrowings and general and administrative costs.

     The Bank is regulated by the Office of Thrift Supervision ("OTS") 
and the Federal Deposit Insurance Corporation ("FDIC"), and is subject 
to periodic examination by both entities.  The Bank is also subject to 
the regulations of the Board of Governors of the Federal Reserve System 
("FRB"), which establishes rules regarding reserves that must be 
maintained against customer deposits.


FINANCIAL CONDITION

Assets

     The Company's total assets as of June 30, 1998, were $726.7 
million, a decrease of $6.8 million from September 30, 1997, the prior 
fiscal year end.

     As of June 30, 1998, included in securities available for sale are 
$0.2 million in residual interest in collateralized mortgage obligation 
bonds and $3.3 million in interest-only strip securities.  The interest-
only strips consist of excess mortgage servicing rights established at 
the time of various loan sales in accordance with Statement of Financial 
Accounting Standards ("SFAS") No. 125.  Derivative financial instruments 
are carried at estimated fair value in accordance with SFAS No. 115.  
Neither the Company nor the Bank actively trade in derivative financial 
instruments and management does not currently use derivative financial 
instruments to manage interest rate risk or for other hedging 
strategies.

     MBS available for sale decreased $2.8 million during the nine 
months ended June 30, 1998, as the sales volume of MBS exceeded the 
volume of additions.  Additions to MBS available for sale are 
accomplished primarily through "swap" transactions, whereby the Bank 
receives GNMA, FHLMC, and FNMA securities in exchange for whole mortgage 
loans.  Management plans to sell these securities in the subsequent 
months.  During the nine months ended June 30, 1998, the Bank swapped a 
total of $159.3 million in mortgage loans for MBS.

     As the Bank originates mortgage loans each month, management 
evaluates the existing market conditions to determine which loans will 
be held in the Bank's portfolio and which loans will be sold in the 
secondary market.  Loans sold in the secondary market can be sold with 
servicing released or converted into MBS and sold with the loan 
servicing retained by the Bank.  At the time of each loan commitment, a 
decision is made to either hold the loan for investment, hold it for 
sale with servicing retained, or hold it for sale with servicing 
released.  Management  monitors market conditions to decide whether 
loans should be held in portfolio or sold and if sold, which method of 
sale is appropriate.  In total, the Bank originated  $409.2 million in 
mortgage loans during the nine months ended June 30, 1998, an increase 
of 33% from $308.4 million during the nine months ended June 30, 1997. 

     Included in the $133.9 million in loans held for sale as of June 
30, 1998, are $13.9 million in mortgage loans held for sale with 
servicing released.  During the nine-month period, the Bank originated 
$93.0 million of these loans and sold $96.1 million.  Also included in 
loans held for sale as of June 30, 1998, are $2.5 million in commercial 
residential loans insured by the Federal Housing Administration ("FHA").  
The Bank holds options to sell these insured loans back to the FHA 
during specified periods in the future at specified prices.  All loans 
held for sale are carried at the lower of cost or fair value.

     Real estate owned decreased $2.0 million during the nine months 
ended June 30, 1998, due to the sale of 14.4 acres of undeveloped land 
in Dallas, Texas.  The property, which was previously carried at $1.4 
million, was sold for $4.4 million, net of expenses.  In the 
transaction, the Bank received $2.7 million in cash and a note for $1.7 
million.  Since the note was made at substantially below market terms, 
management has continued to carry the asset as REO, and has established 
a specific loss reserve for the entire amount of the loan.  It is the 
buyer's intention to resell the entire remaining property to third 
parties and the Bank will receive payments on the note as these re-sales 
are closed.  One such resale occurred during the quarter ended June 30, 
1998, and the Bank received a payment on the loan of approximately $1 
million.  Since the loan was fully reserved, the payment was treated as 
a recovery, which increased the general valuation allowance ("GVA") on 
REO by approximately $1 million.

     The Company classifies problem assets as "substandard," "doubtful" 
or "loss."  Substandard assets have one or more defined weaknesses, and 
it is possible that the Bank will sustain some loss unless the 
deficiencies are corrected.  Doubtful assets have the same defects as 
substandard assets plus other weaknesses that make collection or full 
liquidation improbable.  Assets classified as loss are considered 
uncollectible and of such little value that a specific loss allowance is 
warranted.

     The following table summarizes the Bank's classified assets as 
reported to the OTS.  Dollar amounts are expressed in thousands.
<TABLE>
<CAPTION>
                             6/30/98    9/30/97    6/30/97
                            ---------  ---------  ---------
<S>                         <C>        <C>        <C>
Asset Classification:				
  Substandard               $  9,135     10,263      9,801
  Doubtful                        10         12         13
  Loss                         2,152      2,944      2,992
                            -------------------------------
                              11,297     13,219     12,806
Allowance for losses         (10,127)    (7,952)    (8,117)
                            -------------------------------
                            $  1,170      5,267      4,689
                            ===============================
</TABLE>

     Total allowance for losses increased $2.2 million during the nine-
month period ended June 30, 1998.  This increase occurred in the 
allowance for REO loss account, due primarily to recoveries received on 
the real estate in Dallas, Texas, which was discussed above.
	
     When an insured institution classifies problem assets as either 
substandard or doubtful, regulations require specific loss allowances to 
reduce their book value to fair value.  In addition, management 
establishes GVA for other possible loan losses.  GVA are allowances that 
recognize the inherent risks associated with lending activities but, 
unlike specific allowances, have not been allocated to particular 
problem assets.  When an association classifies a problem asset as loss, 
it is required to establish a specific allowance for 100% of the asset 
balance.  The Bank's classification of its assets and the amount of its 
valuation allowances are subject to review by the OTS who may require 
additional GVA or specific loss allowances. 

     Management believes that the specific loss allowances and GVA are 
adequate.  While management uses available information to determine 
these allowances, future allowances may be necessary because of changes 
in economic conditions.  Also, regulatory agencies (OTS and FDIC) review 
the Bank's allowance for loss as part of their examinations, and they 
may require the Bank to recognize additional loss provisions based on 
the information available at the time of their examinations.

Liabilities and Equity  

     Customer deposit accounts increased $21.5 million during the nine 
months ended June 30, 1998.  The weighted average rate paid on customer 
deposits as of June 30, 1998, was 5.18%, a decrease from 5.21% as of 
June 30, 1997. 

     Advances from the Federal Home Loan Bank were $109.2 million as of 
June 30, 1998, a decrease of $34.0 million from September 30, 1997.  
During the nine-month period the Bank borrowed $124.0 million of new 
advances and made $158.0 million in repayments.  Management uses FHLB 
advances at various times as an alternate funding source to provide 
operating liquidity and to fund the origination and purchase of mortgage 
loans.

     Other notes payable decreased $1.5 million during the nine-month 
period ended June 30, 1998.  This was due to the maturity of industrial 
development revenue refunding bonds, which were issued by the City of 
Belton, Missouri.

     Escrows were $4.0 million as of June 30, 1998, a decrease of $2.0 
million from September 30, 1997.  This decrease is due primarily to 
amounts paid for borrowers taxes during the fourth calendar quarter of 
1997. 

     Total stockholders' equity as of June 30, 1998, was $67.0 million 
(9.22% of total assets).  This compares to a book value of $59.2 million 
(8.07% of total assets) at September 30, 1997.  On a per share basis, 
stockholders' equity was $30.03 on June 30, 1998, compared to $26.47 on 
September 30, 1997.

     The Company paid cash dividends on its common stock of $0.20 on 
December 1, 1997, $0.25 on February 27, 1998, and $0.25 on May 29, 1998.  
Subsequent to the quarter ended June 30, 1998, the Company announced a 
cash dividend of $0.25 per share on August 31, 1998, payable to 
stockholders of record as of August 7, 1998.

     Total stockholders' equity as of June 30, 1998, includes an 
unrealized gain of $150,000, net of income tax, on available for sale 
securities in accordance with SFAS No. 115.  

Ratios

     The following table illustrates the Company's return on assets 
(annualized net earnings divided by average total assets); return on 
equity (annualized net earnings divided by average equity); and equity-
to-assets ratio (average equity divided by average total assets).

<TABLE>
<CAPTION>
                                 Nine months ended
                              ----------------------
                                6/30/98     6/30/97
                              ----------  ----------
<S>                           <C>         <C>
Return on average assets         1.74%       1.45%
Return on average equity        20.10%      19.44%
Equity-to-assets ratio           8.64%       7.44%
Dividend payout ratio           16.47%      15.99%

</TABLE>

RESULTS OF OPERATIONS - Comparison of three months ended June 30, 1998, 
and 1997, and comparison of nine months ended June 30, 1998, and 1997.

     For the three months ended June 30, 1998, the Company had net 
income of $3,176,000 or $1.42 per share.  This compares to net income of 
$2,796,000 or $1.24 per share for the quarter ended June 30, 1997.

     Net income for the nine months ended June 30, 1998, was $9,510,000 
or $4.25 per share compared to net income of $7,850,000 or $3.48 per 
share during the same period in the prior year.

Net Interest Margin  

     The Company's net interest margin is comprised of the difference 
("spread") between interest income on loans, MBS and investments and the 
interest cost of customer deposits and other borrowings.  Management 
monitors net interest spreads and, although constrained by certain 
market, economic, and competition factors, it establishes loan rates and 
customer deposit rates that maximize net interest margin.

     The following table presents the total dollar amounts of interest 
income and expense on the indicated amounts of average interest-earning 
assets or interest-costing liabilities for the nine months ended June 
30, 1998, and 1997.  Average yields reflect reductions due to non-
accrual loans.  Once a loan becomes 90 days delinquent, any interest 
that has accrued up to that time is reserved and no further interest 
income is recognized unless the loan is paid current.  Average balances 
and weighted average yields for the periods include all accrual and non-
accrual loans.  The table also presents the interest-earning assets and 
yields for each respective period.  Dollar amounts are expressed in 
thousands.

<TABLE>
<CAPTION>
                                  Nine months ended 6/30/98    As of
                               -----------------------------  6/30/98
                                Average              Yield/    Yield/
                                Balance   Interest    Rate      Rate 
                               ---------------------------------------
<S>                            <C>        <C>        <C>       <C>
Interest-earning assets
  Loans                        $ 633,452    43,049     9.06%     8.08%
  Mortgage-backed securities      44,667     2,410     7.19%     6.63%
  Investments                     19,401     1,071     7.36%     7.86%
  Bank deposits                    8,487       382     6.00%     5.23%
                               ---------------------------------------
    Total earning assets         706,007    46,912     8.86%     7.99%
                                           ---------------------------
Non-earning assets                25,472
                               ----------
    Total                      $ 731,479 
                               ==========		

Interest-costing liabilities:
  Customer deposits accounts   $ 529,004    20,161     5.08%     5.18%
  FHLB Advances                  128,920     5,857     6.06%     5.78%
  Other borrowings                 1,078        45     5.57%     7.50%
                               ---------------------------------------
    Total costing liabilities    659,002    26,063     5.27%     5.28%
                                           ---------------------------
Non-costing liabilities            8,986
Stockholders' equity              63,491
                               ----------
    Total                      $ 731,479
                               ==========
Net earning balance            $  47,005
                               ==========
Earning yield less costing rate                        3.59%     2.70%
                                                      ================
Average interest-earning 
  assets, net interest, and 
  net yield spread on average
  interest-earning assets      $ 706,007    20,849     3.94%
                               ==============================

<CAPTION>
                                  Nine months ended 6/30/97    As of
                               -----------------------------  6/30/97
                                Average              Yield/    Yield/
                                Balance   Interest    Rate      Rate 
                               ---------------------------------------
<S>                            <C>        <C>        <C>       <C>
Interest-earning assets
  Loans                        $ 621,831    40,468     8.68%     8.33%
  Mortgage-backed securities      47,948     2,671     7.43%     7.16%
  Investments                     13,574       711     6.98%     6.83%
  Bank deposits                    9,656       232     3.20%     5.30%
                               ---------------------------------------
    Total earning assets         693,009    44,082     8.48%     8.17%
Non-earning assets                20,485   ---------------------------
                               ----------
Total                          $ 713,494
                               ==========
Interest-costing liabilities
  Customer deposits accounts   $ 497,525    19,207     5.15%     5.21%
  FHLB Advances                  148,739     6,794     6.09%     6.14%
  Other borrowings                 1,498        68     6.05%     6.20%
                               ---------------------------------------
    Total costing liabilities    647,762    26,069     5.37%     5.44%
Non-costing liabilities           10,209   ---------------------------
Stockholders' equity	             55,523
                               ----------
Total                          $ 713,494
                               ==========
Net earning balance            $  45,247
                               ==========
Earning yield less costing rate                        3.12%     2.73%
                                                      ================
Average interest-earning
  assets, net interest, and
  net yield spread on average
  interest-earning assets      $ 693,009    18,013     3.47%
                               ==============================


</TABLE>

     The following table provides information regarding changes in 
interest income and interest expense.  For each category of interest-
earning asset and interest-costing liability, information is provided on 
changes attributable to  (1) changes in volume (change in volume 
multiplied by the old rate),  (2) changes in rates (change in rate 
multiplied by the old volume), and  (3) changes in rate and volume 
(change in rate multiplied by the change in volume).  Average balances, 
yields and rates used in the preparation of this analysis come from the 
preceding table.  Dollar amounts are expressed in thousands.


<TABLE>
<CAPTION>

                                        Nine months ended June 30, 1998 compared to 
                                             nine months ended June 30, 1997
                                     -------------------------------------------------
                                                                   Yield/	
                                        Yield        Volume        Volume       Total
                                     -------------------------------------------------
<S>                                  <C>            <C>          <C>         <C>
Components of interest income:					
  Loans                              $  1,772           757            52       2,581
  Mortgage-backed securities              (86)         (183)            8        (261)
  Investments                              38           305            17         360
  Other assets                            203           (28)          (25)        150
                                     -------------------------------------------------
Net change in interest income           1,927           851            52       2,830
                                     -------------------------------------------------
Components of interest expense:					
  Customer deposit accounts              (261)        1,216            (1)        954
  FHLB Advances                           (33)         (905)            1        (937)
  Other borrowings                         (6)          (19)            2         (23)
                                     -------------------------------------------------
Net change in interest expense           (300)          292             2          (6)
                                     -------------------------------------------------
Increase (decrease) in 
   net interest margin               $  2,227           559            50       2,836
                                     =================================================

</TABLE>



     Net interest margin before loan loss provision in the three months 
ended June 30, 1998, increased $968,000 from the quarter ended June 30, 
1997.  Specifically, interest income increased $831,000, and interest 
expense decreased $137,000.  Approximately $200,000 of the increase in 
interest income is due to an increase in amortization of deferred 
discounts and fees on loans, which was caused by an increase in loan 
prepayments.  When a loan prepays, the Bank records all remaining 
unamortized discount or loan fees as an adjustment to loan yield.  The 
remainder of the increase in net interest margin is attributed to 
retained earnings, which increased the net earning balance.  

     Net interest margin before loan loss provision in the nine months 
ended June 30, 1998, increased $2.8 million from the nine months ended 
June 30, 1997.  Specifically, the increase in net interest margin was 
due to an increase in interest income of $2.8 million.  Approximately 
$974,000 of this increase is due to an increase in amortization of 
discounts and deferred fees on loans.  This increase in the recognition 
of discounts and deferred fees resulted in an increase in the average 
yield on the earning asset portfolio from 8.68% during the nine months 
ended June 30, 1997 to 9.06% during the nine months ended June 30, 1998.  
The remainder of the increase in interest income is attributable to an 
increase of $13.0 million in the average balance of earning assets to 
$706.0 million from $693.0 million in the prior year. 

     The Company's net interest margin is impacted by changes in market 
interest rates, which have varied greatly over time.  Changing interest 
rates affect the level of prepayments on mortgages, the demand for new 
mortgage loans, and the supply and interest cost of customer deposits 
and borrowings used to fund interest-earning assets.  Management 
monitors the Company's net interest spreads (the difference between 
yields received on assets and paid on liabilities) and, although 
constrained by market conditions, economic conditions, and prudent 
underwriting standards, it offers deposit rates and loan rates that 
maximize net interest income.  Management does not predict interest 
rates, but instead attempts to fund the Company's assets with 
liabilities of a similar duration to minimize the impact of changing 
interest rates on the Company's net interest margin.  Since the relative 
spread between financial assets and liabilities is constantly changing, 
the Company's current net interest spread may not be an indication of 
future net interest income.

     Management has adopted a strategy to originate and purchase 
mortgage loans with adjustable interest rates and fund these assets with 
customer deposits or borrowings from the FHLB that have comparable 
maturities or repricing characteristics.  Most of these adjustable rate 
mortgage ("ARM") products offer a below market interest rate initially, 
with a provision to adjust each year based on certain market indices.  
Although the initially low interest rates result in a more narrow 
spread, the ARM products provide long-term stability to the net interest 
margin and help to insulate the Company from the detrimental effects of 
future changes in interest rates.

Provision for Loan Losses

     The Company's provision for loan losses of  $62,000 during the 
quarter ended June 30, 1998, was a decrease of $111,000 over the three 
months ended June 30, 1997.  The provision for loan losses of $377,000 
during the nine month period ended June 30, 1998, decreased $31,000 over 
the nine month period ended June 30, 1997.  

     As stated above, management believes that the provisions for loss 
are adequate.  These provisions can fluctuate based on changes in 
economic conditions or changes in the information available to 
management.  Also, regulatory agencies review the Company's allowances 
for loss as a part of their examination process and they may require 
changes in loss provision amounts based on information available at the 
time of their examination.  Management establishes allowances for loss 
based on current economic values and any disruptions in the real estate 
market could cause management to increase the provision for loss.     

Other Operating Income

     Other operating income for the three months ended June 30, 1998, 
increased $119,000 from the same period in the prior year.  
Specifically, loan servicing fees decreased $270,000 due to an increase 
in the amortization of capitalized servicing rights, which was a result 
of an increase in prepayments of the underlying mortgage loans.  
Customer service fees increased $116,000 due to a higher volume of 
checking accounts and other transaction accounts and an increase in late 
charges on mortgage loans.  Real estate owned revenue (expense) 
decreased $61,000 due to the cost of deferred maintenance that was 
performed on one commercial property during the quarter ended June 30, 
1998.  Gain on sale of loans increased $288,000 due to an increase in 
the volume of loans sold.  Other operating income increased $43,000 due 
to a negative loss provision on other accounts receivable, which was the 
result of a recovery during the quarter. 

     Other operating income for the nine months ended June 30, 1998, 
increased $1.3 million from the same period in the prior year.  Loan 
servicing fees decreased $303,000 due to an increase in the amortization 
of capitalized servicing rights, which was a result of an increase in 
prepayments of the underlying mortgage loans.  Customer service fees 
increased $272,000 due to a higher volume of checking accounts and other 
transaction accounts and an increase in late charges on mortgage loans.  
Real estate owned revenue (expense) decreased $216,000 as a result of 
the cost of deferred maintenance that was performed on one commercial 
property and a decrease in rental income on commercial REO that was sold 
during the period.  Gross income from mortgage banking operations 
increased $246,000 due to an increase in volume.  Gain on sale of loans 
increased $879,000 due to an increase in volume of loans sold plus the 
impact of applying SFAS No. 125.  Other operating income increased 
$647,000 due to an increase in loan prepayment penalties and a negative 
loss provision on other accounts receivable, which was the result of a 
recovery.  

General and Administrative Expenses

     Total general and administrative expenses for the quarter ended 
June 30, 1998, increased $531,000 from the same quarter in the prior 
year.  The increase in compensation and fringe benefits was related to 
and increase in staffing in the construction lending and mortgage loan 
origination departments, due to an increase in construction lending and 
mortgage banking volume.

     Total general and administrative expenses for the nine months ended 
June 30, 1998, increased $1.4 million from the nine months ended June 
30, 1997.  The increases in compensation and other expenses are due 
primarily to increases in staffing in the construction lending mortgage 
lending departments.  These are partially offset by a decrease in SAIF 
insurance premiums, which is fully discussed in the section titled 
"Insurance of Accounts."

Income Taxes

     The Company accounts for income taxes in accordance with SFAS No. 
109, "Accounting for Income Taxes."  The most recent audit of the Bank's 
tax returns by the Internal Revenue Service was completed during the 
quarter ended June 30, 1996.  

YEAR 2000 ISSUE

     The Board of Directors and the management of the Company have 
established a formal process for the implementation of a plan to 
evaluate and correct the problems that the year 2000 could cause to the 
Company's critical automated systems. The year 2000 problem exists 
because many automated systems use only two digit fields to represent 
the year, such as "98" representing 1998.  However, with the two digit 
format, the year 2000 is indistinguishable from 1900, 2001 from 1901, 
and so on.  Should these critical systems fail in the year 2000, the 
Company would have difficulty in processing transactions for loan and 
deposit customers, which could cause significant damage to the Company's 
important customer relationships.

     The Company's year 2000 implementation process was established 
using a standard framework set forth by the Federal Reserve Bank.  The 
process includes separate phases for awareness, assessment, renovation, 
validation, and implementation.  The Company's year 2000 plan also 
includes the development and implementation of a contingency plan for 
each of the Company's critical automated systems if they should fail to 
become year 2000 compliant by certain target dates.  Such contingency 
plans should be completed by the end of the third calendar quarter in 
1998.  Since the Company does not develop any of the software programs 
that are utilized, the process is focused on follow-up and testing of 
software provided by third party vendors and data centers to ensure 
their renovation.  Also, the process attends to pre-packaged computer 
software, personal computer and server hardware, and other electronic 
equipment.  

     The data processing of Bank's core operations is provided by a 
third party service bureau.  Management has received assurances from the 
Bank's service bureau that it is progressing toward its goal of making 
their software and data center hardware year 2000 compliant.  The Bank 
is participating in testing procedures and it continues to prudently 
monitor the progress reports received from the vendor.  In the year 2000 
process, the Company has also evaluated the hardware and software on its 
wide-area network ("WAN").  To date, the Company has completed the 
awareness and assessment phases of the year 2000 process.  The plan's 
renovation phase will occur in the third and fourth calendar quarters of 
1988, with the validation and implementation phases to occur by March 
31, 1999.  Management estimates that the year 2000 implementation 
process will cost between $300,000 and $400,000, which includes the cost 
of capitalized computer hardware for the WAN and other costs to perform 
testing and validation of services provided by the Company's service 
bureau and other third parties.

     The Company recently underwent an on-site examination of its year 
2000 process, which was performed by the Office of Thrift Supervision 
(OTS), its primary regulator.  Management is continuing to work closely 
with vendors, service providers, and regulators to accomplish its goal 
of a smooth transition to the year 2000.

REGULATION

     The Bank is a member of the FHLB System and its customers' deposits 
are insured by the Savings Association Insurance Fund ("SAIF") of the 
FDIC.  The Bank is subject to regulation by the OTS as its chartering 
authority.  Since passage of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 ("FIRREA" or the "Act"), the FDIC 
also has regulatory control over the Bank.  The transactions of SAIF-
insured institutions are limited by statute and regulations that may 
require prior supervisory approval in certain instances.  Institutions 
also must file reports with regulatory agencies regarding their 
activities and their financial condition.  The OTS and FDIC make 
periodic examinations of the Bank to test compliance with the various 
regulatory requirements.  The OTS can require an institution to re-value 
its assets based on appraisals and to establish specific valuation 
allowances.  This supervision and regulation is intended primarily for 
the protection of depositors.  Also, savings institutions are subject to 
certain reserve requirements under Federal Reserve Board regulations.

Insurance of Accounts

     The SAIF insures the Bank's customer deposit accounts to a maximum 
of $100,000 for each insured member.  Deposit insurance premiums are 
determined using a Risk-Related Premium Schedule ("RRPS"), a matrix 
which places each insured institution into one of three capital groups 
and one of three supervisory groups.  Currently, deposit insurance 
premiums range from 0 to 27 basis points of the institution's total 
deposit accounts, depending on the institution's risk classification.  
The Bank is currently considered "well capitalized", which is the most 
favorable capital group and supervisory subgroup.  SAIF-insured 
institutions are also assessed a premium of 0.648% of insured deposits 
to service the interest on Financing Corporation ("FICO") debt. 

Regulatory Capital Requirements

     At June 30, 1998, the Bank exceeds all capital requirements 
prescribed by the OTS.  To calculate these requirements, a thrift must 
deduct any investments in and loans to subsidiaries that are engaged in 
activities not permissible for a national bank.  As of June 30, 1998, 
the Bank did not have any investments in or loans to subsidiaries 
engaged in activities not permissible for national banks.

     The following table illustrates the Bank's capital ratios compared 
to the regulatory requirements as of June 30, 1998.  Dollar amounts are 
expressed in thousands.


<TABLE>
<CAPTION>
                                                                                   As % of
                                                      As % of                       risk-
                                                       total            Risk-     weighted
                                          Core        assets            based      assets
                                       -------------------------    --------------------------
<S>                                    <C>           <C>             <C>           <C>
GAAP Capital (Bank only)               $ 62,253          8.6%          62,253         12.9% 
Adjustments for regulatory capital:							
  Intangible assets                        (138)          --             (138)          --
  General valuation allowances               --           --            5,277          1.0%
  Reverse effect of SFAS No. 115           (150)          --             (150)          --
                                       -------------------------    --------------------------
Regulatory capital                       61,965          8.6%          67,242         13.9%
Requirement                              28,975          4.0%          38,623          8.0%
                                       -------------------------    --------------------------
Excess                                 $ 32,990          4.6%          28,619          5.9%
                                       =========================    ==========================

</TABLE>


Interest Rate Risk Component

     The OTS has adopted a rule which requires savings institutions with 
a "greater than normal" level of interest rate exposure to deduct 
amounts from their total capital for the purpose of calculating the 
risk-based capital requirement.  The deduction is an amount equal to 
one-half of the difference between the institution's measured exposure 
and the "normal" exposure level (i.e., 2% of the estimated economic 
value of the institution's assets).  The rule measures interest rate 
risk as the decline in Net Portfolio Value that would result from a 200 
basis point increase or decrease in market interest rates.  The rule 
sets forth a description of valuation methodologies for assets, 
liabilities, and off-balance sheet items.  Subsidiaries that are deemed 
to be controlled by an institution under generally accepted accounting 
principles will be consolidated for purposes of calculating interest 
rate risk.  Although the interest rate component was originally 
scheduled to become effective by December 31, 1994, the OTS has notified 
institutions to delay implementation until further notice. 

Loans to One Borrower

     Institutions are prohibited from lending to any one borrower in 
excess of 15% of the Bank's unimpaired capital plus unimpaired surplus, 
or 25% of unimpaired capital plus unimpaired surplus if the loan is 
secured by certain readily marketable collateral.  Renewals that exceed 
the loans-to-one-borrower limit are permitted if the original borrower 
remains liable and no additional funds are disbursed.  As of June 30, 
1998, the Bank had no loans that exceeded the loans to one borrower 
limit.

Investment in Subsidiaries

     Investments in and extensions of credit to subsidiaries not engaged 
in activities permissible for national banks must generally be deducted 
from capital.  As of June 30, 1998, the Bank did not have any 
investments in or advances to subsidiaries engaged in activities not 
permissible for national banks.

LIQUIDITY AND CAPITAL RESOURCES

     The Bank generates liquidity primarily from savings deposits and 
repayments on loans, investments, and mortgage-backed securities.  
Liquidity measures the ability to meet deposit withdrawals and lending 
commitments.  For secondary sources of liquidity, the Bank has the 
ability to sell assets held for sale, can borrow from primary securities 
dealers on a collateralized basis, and can use the FHLB of Des Moines' 
credit facility.  The Bank, as a member of the FHLB System, is subject 
to regulations that require the maintenance of liquidity ratios (daily 
average liquid assets as a percentage of net withdrawable customer 
deposits and current borrowings).  The regulatory liquidity requirement 
may vary depending on economic conditions and activity of customer 
deposits.  For the month of June 1998, the required liquidity ratio was 
4%, and the Bank's average regulatory liquidity ratio was 5.2%.

     Fluctuations in the level of interest rates typically impact 
prepayments on mortgage loans and MBS.  During periods of falling 
interest rates, these prepayments increase and a greater demand exists 
for new loans.  The Bank's customer deposits are partially impacted by 
area competition.  Management is not currently aware of any other market 
or economic conditions that could materially impact the Bank's future 
ability to meet obligations as they come due.



PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
           There were no material proceedings pending other than 
ordinary and routine litigation incidental to the business of the 
Company.

Item 2.  Changes in Securities
           None.


Item 3.  Defaults Upon Senior Securities
           None.


Item 4.  Submission of Matters to a Vote of Security Holders.
           None.


Item 5.  Other Information
           None.

Item 6.  Exhibits and Reports on Form 8-K
            Report on Form 8-K dated April 15, 1998, which reported 
under Item 5, the consummation of a Merger agreement, whereby North 
American Savings Bank, F.S.B. became a wholly-owned subsidiary of NASB 
Financial, Inc.  The Agreement and Plan of Merger, Articles of 
Incorporation for NASB Financial, Inc., and Bylaws of NASB Financial, 
Inc. were included as exhibits to the filing.


		
                           S I G N A T U R E S   


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


<TABLE>
<S>                                  <C>
(Registrant)                         NASB Financial, Inc.


By (signature)                       /s/ David H. Hancock
(Name)                               David H. Hancock
(Title)                              Chairman and
                                     Chief Executive Officer
(Date)                               August 13, 1998


By (signature)                       /s/ Keith B. Cox
(Name)                               Keith B. Cox
(Title)                              Executive Vice President and
                                     Chief Financial Officer
(Date)                               August 13, 1998


</TABLE>
19