<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated financial statements of PALFED, Inc. and Subsidiaries as of
September 30, 1996 and the related consolidated state of income for the
three months then ended, and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JUL-01-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                          11,291
<INT-BEARING-DEPOSITS>                           4,133
<FED-FUNDS-SOLD>                                     0
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                     31,805
<INVESTMENTS-CARRYING>                          61,266
<INVESTMENTS-MARKET>                            61,272
<LOANS>                                        508,649
<ALLOWANCE>                                      7,798
<TOTAL-ASSETS>                                 659,902
<DEPOSITS>                                     521,359
<SHORT-TERM>                                    67,650
<LIABILITIES-OTHER>                             12,039
<LONG-TERM>                                      6,050
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        52,804
<OTHER-SE>                                           0
<TOTAL-LIABILITIES-AND-EQUITY>                 659,902
<INTEREST-LOAN>                                 11,055
<INTEREST-INVEST>                                1,651
<INTEREST-OTHER>                                    58
<INTEREST-TOTAL>                                12,764
<INTEREST-DEPOSIT>                               6,159
<INTEREST-EXPENSE>                               7,029
<INTEREST-INCOME-NET>                            5,735
<LOAN-LOSSES>                                      313
<SECURITIES-GAINS>                                 177
<EXPENSE-OTHER>                                  7,927
<INCOME-PRETAX>                                (1,431)
<INCOME-PRE-EXTRAORDINARY>                       (978)
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (978)
<EPS-PRIMARY>                                  (0.187)
<EPS-DILUTED>                                  (0.187)
<YIELD-ACTUAL>                                   3.816
<LOANS-NON>                                      3,309
<LOANS-PAST>                                         0
<LOANS-TROUBLED>                                10,532
<LOANS-PROBLEM>                                 15,417
<ALLOWANCE-OPEN>                                 7,914
<CHARGE-OFFS>                                      521
<RECOVERIES>                                        92
<ALLOWANCE-CLOSE>                                7,798
<ALLOWANCE-DOMESTIC>                             7,798
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                          6,724