SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549
                                  FORM 10-Q/A-1


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

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996.

[ ] 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: 33-46921-A

                   KELLER FINANCIAL SERVICES OF FLORIDA, INC.

        FLORIDA                                    59-3110610
        -------                                    ----------
(State of Incorporation)                     (IRS Employer I.D. No.)

                     Address of Principal Executive Offices:

           18167 U.S. HIGHWAY 19 NORTH, CLEARWATER, FLORIDA 34624-6572

               Registrant's telephone number, including area code:

                                 (813) 524-1400

Indicate by check mark whether the registrant: (1) has filed all reports
required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such other 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  [ ]

Indicate the number of shares outstanding of each of the issuer's classes of
stock, as of June 30, 1996.

                             1,600,000 COMMON SHARES


<PAGE>

                                TABLE OF CONTENTS

                                                                        PAGE
PART I      FINANCIAL INFORMATION

            Item I - Financial Statements                                3

            Item II - Management's Discussion and Analysis
            of Financial Condition and Results of Operation              9

PART II     OTHER INFORMATION

            Item I -   Legal Proceedings                                14

            Item II -  Changes in Securities                            14

            Item III - Default upon Senior Securities                   14

            Item IV -  Submission of Matters to a Vote of               14
                       Security Holders

            Item V -   Other Information                                14

            Item VI -  Exhibits and Reports on Form 8-K                 14

                                        2

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<TABLE>
<CAPTION>

                         PART I - FINANCIAL INFORMATION

ITEM I - FINANCIAL STATEMENTS

                   KELLER FINANCIAL SERVICES OF FLORIDA, INC.
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

                                                                                    JUNE 30,             DECEMBER 31,
                                                                                      1996                   1995
                                                                                 -------------          -------------
                                    ASSETS
<S>                                                                              <C>                    <C>          
Cash and cash equivalents                                                        $  12,104,335          $  17,976,477
                                                                                 
Finance receivables, principal                                                     110,345,514            103,048,408
  Non-refundable acquisition discounts                                              (1,391,151)            (2,108,093)
  Less allowance for credit losses                                                 (20,005,084)           (10,945,525)
                                                                                 -------------          -------------
   Finance receivables, Net                                                         88,949,279             89,994,790
                                                                                 -------------          -------------

Marketable equity securities                                                               -0-                    -0-
Due from affiliate                                                                         -0-                    -0-
Deferred issue costs                                                                 8,821,620             10,451,345
Furniture, equipment & leaseholds, net                                               1,295,610                902,241
Other assets                                                                         5,261,113              4,210,891
                                                                                 -------------          -------------

      TOTAL ASSETS                                                               $ 116,431,957          $ 123,535,744
                                                                                 =============          =============


                         LIABILITIES AND EQUITY
Accounts payable & accrued exp.                                                  $     436,306          $     171,953
Secured notes                                                                      132,774,000            132,814,000
Notes payable - related party                                                              -0-                 80,000
Due to affiliate                                                                           -0-                    -0-
                                                                                 -------------          -------------
    TOTAL LIABILITIES                                                              133,210,306            133,065,953
                                                                                 -------------          -------------


Cumulative Convertible Preferred Stock, 10,000,0000 shares authorized,
1,490,700 and 0 shares issued and outstanding                                       13,562,629                    -0-
Common stock, $1 par  value, 2,000,000 issued and outstanding                            1,000                  1,000
Additional paid-in capital                                                             965,600                965,600
Retained earnings (deficit)                                                        (31,282,578)           (10,496,809)
Treasury Stock, at cost
     400,000 shares at $.0625                                                          (25,000)                   -0-
                                                                                 -------------          -------------
    TOTAL EQUITY                                                                   (16,778,349)            (9,530,209)
                                                                                 -------------          -------------

    TOTAL LIAB. & EQUITY                                                         $ 116,431,957          $ 123,535,744
                                                                                 =============          =============
</TABLE>

                                       3

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<TABLE>
<CAPTION>
                   KELLER FINANCIAL SERVICES OF FLORIDA, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                                              THREE MONTHS ENDED                          SIX MONTHS ENDED
                                                                    JUNE 30,                                   JUNE 30,
                                                           1996                 1995                  1996                  1995 
<S>                                                   <C>                  <C>                    <C>                   <C>
INTEREST INCOME
    Finance charges, fees, and
    other income                                      $  5,693,595         $     5,320,755        $ 10,519,326         $  8,920,551
    Interest expense                                    (4,384,677)             (3,235,613)         (8,615,035)          (5,846,191)
                                                      ------------         ---------------        ------------         ------------
    Net interest income (loss)                           1,308,918               2,085,142           1,904,291            3,074,360

    Provision for credit                                   (35,860)                    -0-         (17,809,125)                 -0-
    losses                                            ------------         ---------------        ------------         ------------
    Net interest income (loss)
    after provision for credit
    losses                                               1,273,058               2,085,142         (15,904,834)           3,074,360

EXPENSES
    Administrative & marketing
    - paid to related party                              2,206,837               1,069,710           4,060,338            1,850,331
    Other operating expenses                               141,548                 142,657             296,715              161,167
                                                      ------------         ---------------        ------------         ------------

NET INCOME (LOSS)
BEFORE INCOME TAXES                                     (1,075,327)                872,775        (20,261,887)         $  1,062,862

    Provision for income taxes                                 -0-                     -0-                 -0-                  -0-
                                                      ------------         ---------------        ------------         ------------

NET INCOME (LOSS)                                     $ (1,075,327)        $       872,775        (20,261,887)         $  1,062,862
                                                      ============         ===============        ============         ============

    Preferred Dividends                                    337,081                     -0-             523,882                  -0-
                                                      ------------         ---------------        ------------         ------------

NET INCOME (LOSS)
applicable to  common
shareholders                                          $ (1,412,408)        $       872,775        $(20,785,769)        $  1,062,862
                                                      ============         ===============        ============         ============

NET INCOME (LOSS) PER
SHARE                                                 $      (0.73)        $          0.44        $     (10.53)        $       0.53
                                                      ============         ===============        ============         ============

WEIGHTED AVERAGE 
SHARES OUTSTANDING                                    $  1,947,253         $     2,000,000        $  1,973,481         $  2,000,000
                                                      ============         ===============        ============         ============
</TABLE>

                                       4
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<TABLE>
<CAPTION>

                   KELLER FINANCIAL SERVICES OF FLORIDA, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            SIX MONTHS ENDED JUNE 30,
                                  (Unaudited)
                                                                         1996              1995
                                                                     -------------     ------------
<S>                                                                  <C>               <C>         
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income (loss)                                                   $(20,261,887)     $  1,062,862
 Adjustments to reconcile net income to cash
 provided by operating activities:
 Depreciation                                                             150,000            32,500
 Provision for credit losses                                           17,809,125               -0-
 Amortization of deferred issue costs                                   1,629,725           934,177
 Net increase (decrease) in discounts                                    (716,942)        3,588,169
 Net increase (decrease) in other assets                               (1,050,222)       (2,752,738)
 Net (increase) decrease in due from affiliate                                -0-               -0-
 Net increase (decrease) in accrued expenses and other
 liabilities                                                              264,353           188,161
                                                                     ------------      ------------
                                                                       (2,175,848)        3,053,131
                                                                     ------------      ------------
CASH FLOWS FROM INVESTING ACTIVITIES
 Finance receivables originated, net of charge-offs                   (45,013,341)      (62,517,211)
 Finance receivables repaid                                            28,966,669        18,152,807
 Purchase of furniture, fixtures, and equipment, net of minor
 disposals                                                               (543,369)         (251,859)
                                                                     ------------      ------------
                                                                      (16,590,041)      (44,616,263)
                                                                     ------------      ------------
CASH FLOWS FROM FINANCING ACTIVITIES
 Net proceeds (repayments) of secured notes                               (40,000)       37,100,000
 Net proceeds from issuance of preferred stock                         13,562,629               -0-
 Preferred dividends                                                     (523,882)              -0-
 Repayment of notes payable - related party                               (80,000)         (350,000)
 Increase in deferred issue costs                                             -0-        (3,696,460)
 Common shareholder distributions                                         (25,000)         (646,994)
                                                                     ------------      ------------
                                                                       12,893,747        32,406,546
                                                                     ------------      ------------
 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                                                                       (5,872,142)       (9,156,586)
 CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD                                                    17,976,477        21,198,721
                                                                     ------------      ------------
 CASH AND CASH EQUIVALENTS,                                          $ 12,104,335      $ 12,042,135
 END OF PERIOD                                                       ============      ============

 SUPPLEMENTAL DISCLOSURES
  Interest paid to creditors                                         $  6,985,306      $  4,912,014
                                                                     ============      ============

NON-CASH INVESTING AND FINANCING ACTIVITIES:
     Unrealized loss on marketable equity securities                 $        -0-      $      5,620
                                                                     ============      ============
</TABLE>

                                       5
<PAGE>


                   KELLER FINANCIAL SERVICES OF FLORIDA, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1. STATEMENT OF INFORMATION FURNISHED
The financial information included herein is unaudited, such information
reflects all normal and recurring adjustments, which are, in the opinion of
management, necessary for a fair presentation of the results of operations and
cash flows for the interim periods.

These unaudited financial statements should be read in conjunction with the most
recent audited financial statements, for the period ended December 31, 1995, of
the Company and the affiliates consolidated with the Company under the exchange
of shares transaction described in Note 4, below.

The results of operations for the six months and three months ended June 30,
1996 are not necessarily indicative of the results to be expected for the full
year.

2. FINANCE CHARGES -- REVENUE RECOGNITION METHOD CHANGE
Revenue from Finance Charges is recognized using procedures that approximate the
interest (actuarial) method.

3. RECALCULATION OF FINANCE CHARGE REVENUE RECOGNITION AND RESTATEMENT OF 1995
FINANCIAL STATEMENTS 
Following the January 1997 installation of a reporting module in the Company's
recently installed new loan servicing system, which provided information not
previously known, the Company reviewed and revised its procedures for
calculating finance charge revenue on the interest (actuarial) method. Based
upon a recalculation, the Company determined that the December 1995 and June
1995 financial statements, based on the old procedures and under the old system,
overstated finance charge revenue recognition by a cumulative $1,825,238 as of
December 1995, of which $396,368 and $665,335 applied to the three months and
six months ended June 30, 1995, respectively. The December 1995 and June 1995
financial statements have been so restated.

4. PRINCIPLES OF CONSOLIDATION
Effective April 29, 1996, the Company's Board adopted a plan to exchange shares
of the Company for all the shares of several of its affiliates; Keller Financial
Services of Tampa Bay, Inc., Keller Financial Services of St. Petersburg, Inc.,
Keller Financial Services of Clearwater, Inc., Keller Financial Services of
Pinellas, Inc., Keller Financial Services of Central Florida, Inc., Keller
Financial Services of West Florida, Inc., Keller Financial Services of the Sun
Coast, Inc., Keller Financial Services of North Florida, Inc., Keller Financial
Services of Mid-Florida, Inc., related entities by common ownership and control.
The transaction was accounted for as a combination of interests in a manner
similar to a pooling-of-interest. No company recognized a gain or loss as a
result of the transaction.

The consolidated financial statements of the Company include the accounts of its
wholly-owned subsidiaries. All significant inter-company transactions have been
eliminated in consolidation.

5. FINANCE RECEIVABLES ALLOWANCE FOR CREDIT LOSSES; NON-REFUNDABLE ACQUISITION
DISCOUNTS
Finance receivables as of June 30, 1996 and December 31, 1995 consist of the
following:

                                            June 30,         December 31,
                                              1996              1995
                                        ---------------    --------------

 Finance receivables, gross             $  146,059,973     $  131,772,130
 Less unearned finance charges             (35,714,459)       (28,723,722)
                                        ---------------    --------------
 Finance receivables, principal         $  110,345,514     $  103,048,408
                                        ===============    ==============

                                      6
<PAGE>

Changes in the allowance for credit losses and the non-refundable acquisition
discount for the six months ended June 30, 1996 and 1995 were as follows:

ALLOWANCE FOR CREDIT LOSSES:

                                               1996              1995
                                           ------------    ---------------
 Beginning balance                         $ 10,945,525    $           -0-
 Provision for credit losses                 17,809,125                -0-
 Finance receivables charged off             (8,749,566)               -0-
                                           ============    ===============
 Ending balance                            $ 20,005,084    $           -0-
                                           ============    ===============

NON-REFUNDABLE ACQUISITION DISCOUNT:

 Beginning balance                         $  2,108,093    $    3,466,430
 Discounts acquired                           3,730,348         5,326,716
 Discounts accreted to income                       -0-               -0-
 Finance receivables charged off             (4,447,290)       (1,738,547)
                                           ============    ==============
 Ending balance                            $  1,391,151    $    7,054,599
                                           ============    ==============

During the First Quarter of 1996, the Company increased its provision for credit
losses through a charge to earnings of $17,773,265 and in response to increasing
levels of finance receivables delinquencies and significantly higher losses on
the disposition of repossessed assets than previously experienced.

6. CAPITAL STOCK
On January 22, 1996, the Company registered and began receiving subscriptions
for 1,500,000 shares of 9% Cumulative Convertible Preferred Stock - Class A. The
Shares are redeemable for cash at any time after December 31, 1996, in whole or
in part, at the option of the Company at redemption prices declining to par on
December 31, 2001. They are convertible into shares of the Company's common
stock twelve months after the completion of an initial public offering of the
Company's common stock. The Company has closed the offering after selling
1,490,700 shares.

7.  RELATED PARTY TRANSACTIONS
KFS is an affiliate of the Company and manages the operations of the Company.
Direct operating and overhead costs are allocated monthly to the Company and its
subsidiaries. Administration and marketing costs associated with servicing
finance receivables and obtaining additional funds are allocated prorata on the
number of finance receivables outstanding and prorata based on the amount of
monthly funds obtained. Loan origination costs are allocated prorata on the
number of finance receivables originated. Deferred issuance costs related to the
issuance of debt and certain taxes are directly allocated to the Company and its
subsidiaries. Total general and administrative and marketing reimbursements of
$4,060,338 and $1,850,331 were paid to KFS during the six months ended June 30,
1996 and 1995. On December 31, 1995, $80,000 was outstanding on a note to an
individual related to the Chairman of the Company. The note was unsecured, paid
interest monthly at a 12% annual interest rate and was callable at any time. The
note was repaid in the Second Quarter of 1996.

8. LIQUIDITY AND CAPITAL RESOURCES
The Company believes that its capital resources are sufficient to fund its
day-to-day operations and to make all interest payments on the secured notes and
dividend payments on the Convertible Preferred Stock when due and payable for
the foreseeable future. Management believes that with the implementation of its
new business plan and the continued improvements resulting from its process
reengineering program, if the Company can obtain the funds necessary to acquire
approximately $6.5 million in finance receivables per month under its new
operating program, the Company will return to a level of profitability
sufficient to meet all other obligations. This belief is consistent with the
results of a financial model. Management believes the Company, through the
acquisition of such volume of finance receivables or other options which
management is continuing to explore, can meet its objectives. Among others,

                                       7
<PAGE>

management is exploring the options of securitizing part of its existing
portfolio (a form of refinancing at a lower effective rate of interest) and
securing a line of credit. The Company is also exploring earning origination
fees by originating contracts for acquisition by other lenders and selling whole
loan pools while retaining servicing and/or origination fees.

                                       8
<PAGE>


ITEM II - MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Keller Financial Services of Florida, Inc. and subsidiaries (the "Company") are
in the business of purchasing retail motor vehicle installment sales contracts
("finance receivables" or "loans") originated in connection with the financing
of new and used automobiles and light-duty trucks, including the right to
receive payments thereunder and security interests in vehicles, and to collect
the principal and interest payments due on such contracts.

The Company transacts business primarily in the State of Florida and operations
are managed by KFS. The Company's loans range from 12 to 60 months at annual
interest rates of 15% to 30%. All loans are currently repayable in monthly
installments. The majority of loans are purchased at a discount from principal
amount owed and the discount is held as a reserve for possible future loan
losses.

The Company also intends to extend, from time to time, limited amounts of dealer
floor plan financing to finance automobiles and motorcycles offered for retail
sale by certain dealers that are a source of significant amounts of finance
receivables to the Company.


GENERAL
Management of KFS has recognized that, due to the extremely competitive nature
of the industry, successful companies in the sub-prime lending industry will be
those which are best able to do the following: (i) Hire and retain a
professional operations management team which is capable of recruiting,
training, leading and motivating their respective units, (ii) Deliver a product
that is consistently superior in both loan underwriting and service quality,
(iii) Accurately measure operational and financial performance and make timely,
responsive changes to plans or programs as necessary, and (iv) Leverage current
and evolving technologies to achieve a competitive advantage.

KFS embarked upon a process reengineering program to accomplish the foregoing.
Process reengineering involves reviewing, at a significant level of detail, the
basic businesses and work flows of a company to determine the most efficient use
of human and financial resources, and to restructure, or "reengineer," the
organization and its business processes to assure efficiency, consistency,
control, profitability, financial stability and the future health of the
organization.

In order to effect process reengineering to achieve these desired performance
standards, Greg Stiff, Executive Vice President - Operations, and Michael Nixon,
President, were hired by the Company and charged with the following
responsibilities: (i) Assure that formal, written communications within the
Company, including management reporting, bulletins, policies and procedures are
in place, current and under constant review and scrutiny for improvement, (ii)
Assure that all KFS branch offices were necessary and that operational units are
in compliance with current KFS policies and procedures by means of periodic
reviews and audits, (iii) Assure that appropriate performance goals are set for
each KFS operational unit and associates, (iv) Implement consistent, accurate
control tools and reporting to assure the stated objectives are achieved, (v)
Assure that each KFS associate clearly understands his or her job assignments,
has been properly trained, knows the expected level of their performance, and
understands their personal responsibility for achieving their performance
objectives, and (vi) Assure that the operations organization is efficiently
structured and that the flow of work within and between each unit and other KFS
departments facilitates the ultimate objective of booking quality, profitable
automobile finance receivables.

Under the process reengineering program, KFS successfully commenced the
implementation of a new business plan in the Second and Third quarters of 1996
by: (i) Centralizing certain operations, (ii) Introducing, in the Third Quarter,
a new three tiered loan acquisition program, (iii) Implementing new credit
underwriting guidelines, including a computerized borrower scoring analysis,
(iv) Installing new computer hardware and software utilized for contract
servicing, including collections and repossessions, and for accounting, (v)
Reviewing Dealer relationships, and (vi) Implementing a revised marketing
program. As an extension of the reengineering program, the Company subsequently
announced the closing of all twenty-one KFS branch offices and the complete
centralization of operations in the Third Quarter 1996. The closings were
subsequently completed in the Fourth Quarter 1996 and resulted the displacement
of approximately eighty employees.

                                       9
<PAGE>

RESULTS OF OPERATIONS
The Company acquired 4,350 contracts through its twenty-one branch network in
the First Quarter 1996, the highest volume ever acquired by the Company in any
fiscal quarter. Many of the contracts were originated through non-franchised
auto dealers who sold primarily older model high-mileage vehicles. Management
now realizes that unlike the First Quarter of 1995, when losses began to abate
late in the quarter, the loss trend continued throughout the entire First
Quarter 1996, and thereafter. Management believes a significant portion of the
unanticipated losses relate to loan activity in the First Quarter 1996. Based
upon the results of the previously reported financial model prepared under the
direction of Mr. Nixon, and previously unavailable data from the Company's new
loan servicing computer system installed in April, 1996, management became able,
in January 1997, to estimate that as of March 31, 1996 the future credit losses
on the loan portfolio would be $28.4 million.

Based upon the foregoing, the Company increased its Allowance for Credit Losses
by $17.8 million through the Provision for Losses as a charge to earnings in the
First Quarter 1996. As of March 31, 1996, the Company had $28.4 million total
reserves for future credit losses comprised of a $25.4 million Allowance for
Credit Losses reserve and $3.0 million of Non-refundable Acquisition Discounts.
The Allowance for Credit Losses declined to $20.0 million and Non-refundable
Acquisition discounts declined to $1.4 million as of June 30, 1996, primarily as
a result of credit losses recognized upon the disposition of repossessed
vehicles since the First Quarter of 1996.

Following the January 1997 installation of a reporting module in the Company's
recently installed new loan servicing system, which provided information not
previously known, the company reviewed and revised its procedures for
calculating finance charge revenue on the interest (actuarial) method. Based
upon a recalculation, the Company determined that the December 1995 and June
1995 financial statements, based on the old procedures and under the old system,
overstated finance charge revenue recognition by a cumulative $1,825,238 as of
December 1995, of which $396,368 and $665,335 applied to the three months and
six months ended June 30, 1995, respectively. The December 1995 and June 1995
financial statements have been so restated.

The changes implemented as a result of the process reengineering program
resulted in significantly fewer contracts being acquired commencing the Second
Quarter of 1996. Although the number of Contracts acquired thereafter has
continued to increase, the volume of contracts acquired in 1996 continues to
remain lower than the comparable periods for 1995.

The Company purchased $6,759,666 finance receivables in the Second Quarter which
represented 550 contracts. For the year, the Company has purchased the
following:


                                      1996                     1995
                             ---------------------    ----------------------
                                   $         Units        $            Units
                             -----------    ------    ----------      ------

First Quarter                 59,001,821     4,350    39,338,705      3,361
Second Quarter                 6,759,666       550    50,404,273      4,029
                             -----------    ------    ----------      -----


Year-to-Date                  65,761,487     4,900    89,742,978      7,390
                             ===========    ======    ==========      =====


As a result of the foregoing, the Company's net interest income before provision
for loan losses decreased 38.1% for the six months and 37.2% for the three
months ended June 30, 1996 to $1,904,291 and $1,308,918 from $3,074,300 and
$2,085,142 during the same period ended 1995. In the Second Quarter 1996, the
Company charged earnings with $35,860 to provide for credit loss reserves for
loans generated during the quarter. In addition, the Company charged the First
Quarter of 1996 earnings $17,773,265. See "Credit Loss and Delinquency
Experience."

                                       10
<PAGE>

Interest expense increased to $8,615,035 from $5,846,191 during the six month
period ended June 30, 1996 on the secured notes which bear interest at rates
ranging from 9% to 12% per annum. These increases are a result of the issuance
of additional secured notes and subsequent purchase of additional installment
sales contracts, throughout 1995 and 1996. The installment sales contracts bear
interest at rates ranging from 15% to 30%.

Expenses, increased 116.6% during the six months and 93.7% for three months
ended June 30, 1996 to $4,357,053 and $2,348,385 from $2,011,498 and $1,212,367
for the same periods ended in 1995. This is a result of increased servicing
costs associated with increased delinquencies and defaults, a larger portfolio
of loans and a larger number of branch offices.

As a result of the foregoing and those factors described in "Industry Trends"
and "Credit Loss and Delinquency," below, net income for the six month period
ended June 30, 1996 decreased to a net loss of $20,261,887 compared to net
income of $1,062,862 for the same period in 1995. For the three month period
ended June 30, 1996 the Company had a net loss of $1,075,327 compared to a net
income of $872,775 for the same period in 1995.

INDUSTRY TRENDS
Over the past several years, lenders in the sub-prime market have experienced
increased rates of delinquency, default and credit losses. Management believes
this is due in part to the maturation of the young sub-prime lending industry,
the current weakening trend of the consumer credit market, attempts by lenders
which lack effective knowledgeable management to determine the correct balance
between risk and reward, and the effect of additional competition on the
marketplace. If these trends continue, the Company may experience credit losses.

The automobile finance business is highly competitive. The Company believes that
there are numerous competitors providing, or capable of providing, financing
through Dealers to purchasers of Vehicles. Because the Company purchases finance
receivables from Dealers that provide financing to borrowers who do not qualify
for traditional financing, the Company does not believe that it competes with
most commercial banks, savings and loans, credit unions and other consumer
lenders that apply more traditional lending criteria to the credit approval
process. Historically, these traditional sources of automobile financing (some
of which are larger, have significantly greater financial resources and have
relationships with captive dealer networks) have not consistently served the
Company's sub-prime market segment. If such a competitor were to enter the
Company's market segment, the Company could be materially adversely affected.
The sub-prime market is highly fragmented and is served by many non-traditional
consumer finance sources. During the past few years, numerous other finance
companies operating in the sub-prime have completed public offerings of
securities to enable them to finance lending activities in the sub-prime market.
To the extent that these and other companies expand or continue to expand their
activities in the market served by the Company, the competition for dealer
relationships and suitable finance receivables in that market will continue to
intensify, which could have an adverse effect on the Company.


CREDIT LOSS AND DELINQUENCY EXPERIENCE

In conjunction with the financing of installment sales contracts, agreements are
entered into with dealers, whereby non-refundable acquisition discounts are
established. These discounts represent the difference between the amount
financed and the amount advanced to the dealer. All or a portion of these
negotiated discounts are available to absorb credit losses, or to be taken into
income at the term of the contract. Conversely, if the Company determines that
the amount of non-refundable acquisition discount is not sufficient to offset
potential credit losses, the Company may seek to increase the amount of
non-refundable acquisition discount on future finance receivables purchases. The
Allowance for Credit Losses reserve may also be increased to cover future
expected credit losses by a charge to current earnings through the Provision for
Credit Losses. Credit loss experience, contractual delinquency of loans
receivable, the value of underlying collateral, and current economic conditions
are factors management use in negotiating the discounts and assessing the
overall adequacy of the discounts to absorb losses.

                                       11
<PAGE>
<TABLE>
<CAPTION>

                                                    AS OF AND FOR THE PERIOD ENDED
                                                               JUNE 30,
                                        ----------------------------------------------------
                                              1996                            1995
                                        ---------------------            -------------------
<S>                                          <C>                            <C>          
 Gross finance receivables                   $ 146,059,973                  $ 127,558,825
 Number of contracts                                15,475                         13,303
 Monthly delinquent Contracts
   31-60 Days                                        1,144   7.4%                   1,077   8.1%
   61-90 Days                                          372   2.4%                     357   2.7%
   91 Days or more                                     412   2.7%                     470   3.5%
 Repossessions                                  $5,261,113   3.6%              $5,423,723   4.3%
 Non-refundable acquisition
 discounts & Allowance for credit
 losses                                        $21,396,235  14.7%             $ 7,504,511  5.9%
 Net charge-offs                              $ 13,196,856   9.0%             $ 1,738,547  1.4%
<FN>
-------------
(1)  Gross finance receivables includes the total of all future payments
due under the Contracts.
(2)  Net charge-offs includes the remaining principal balance, after the 
application of the net proceeds from the liquidation of the vehicle, excluding
accrued and unpaid interest. Also included are post liquidation recoveries on
previously charged off accounts.
</FN>
</TABLE>

As a result of trends discussed above, the delinquency ratio at month-end June
1996 was 12.5%, down from 14.3% in the corresponding period in 1995. However,
net charge-offs for the six months ending June 1996 increased to $13.2 million,
or 9.0% of gross finance receivables, compared to $1.7 million, or 1.4%, in the
corresponding period for 1995.


LIQUIDITY AND CAPITAL RESOURCES
The Company believes that its capital resources are sufficient to fund its
day-to-day operations and to make all interest payments on the secured notes and
dividend payments on the Convertible Preferred Stock when due and payable for
the foreseeable future. Management believes that with the implementation of its
new business plan and the continued improvements resulting from its process
reengineering program, if the Company can obtain the funds necessary to acquire
approximately $6.5 million in finance receivables per month under its new
operating program, the Company will return to a level of profitability
sufficient to meet all other obligations. This belief is consistent with the
results of a financial model. Management believes the Company, through the
acquisition of such volume of finance receivables or other options which
management is continuing to explore, can meet its objectives. Among others,
management is exploring the options of securitizing part of its existing
portfolio (a form of refinancing at a lower effective rate of interest) and
securing a line of credit. The Company is also exploring earning origination
fees by originating contracts for acquisition by other lenders and selling whole
loan pools while retaining servicing and/or origination fees.

During the six months ending June 30, 1996, net proceeds of $13.6 million of new
issue Convertible Preferred Stock and $29.0 million finance receivables
repayments provided funding for 95.7% of the $44.5 million new finance
receivables purchased during the period. Cash flow from operations was ($2.7)
million due primarily to an operating deficit and previously discussed credit
losses and vehicle repossessions. Cash and equivalents were reduced $5.9 million
during the period primarily to fund this operating cash requirement, the
remaining portion of new receivables purchased, a $.5 million increase in fixed
assets and $.5 million preferred dividends. Cash and equivalents were
$12,104,335 at June 30, 1996.

                                       12
<PAGE>

BUSINESS COMBINATION
Effective April 29, 1996, the Company's Board adopted a plan to exchange shares
of the Company for all the shares of several of its affiliates; Keller Financial
Services of Tampa Bay, Inc., Keller Financial Services of St. Petersburg, Inc.,
Keller Financial Services of Clearwater, Inc., Keller Financial Services of
Pinellas, Inc., Keller Financial Services of Central Florida, Inc., Keller
Financial Services of West Florida, Inc., Keller Financial Services of the Sun
Coast, Inc., Keller Financial Services of North Florida, Inc., Keller Financial
Services of Mid-Florida, Inc., related entities by common ownership and control.
The transaction was accounted for as a combination of interests in a manner
similar to a pooling-of-interest. No company recognized a gain or loss as a
result of the transaction.

                                       13
<PAGE>


                   KELLER FINANCIAL SERVICES OF FLORIDA, INC.
                           PART II - OTHER INFORMATION

Item I - Legal Proceedings

     None.

Item II - Changes in Securities

     None.

Item III - Default upon Senior Securities

     None.

Item IV - Submission of Matters to a Vote of Security Holders

     None.

Item V - Other Information

     None.

Item VI - Exhibits and Reports on Form 8-K

     Exhibit 27 - Financial Data Schedule (for SEC use only)

     Form 8-K, Resignation of Director, dated June 18, 1996


                                    SIGNATURE

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, thereto duly authorized.


Date:                                    By: /s/ MICHAEL NIXON
January 29,1997                          ------------------------------------
                                         Michael Nixon
                                         President and Chief Executive Officer

                                       14