<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION FOR PALFED, INC. AND SUBSIDIARIES
AS OF SEPTEMBER 30, 1997 AND THE RELATED CONSOLIDATED DATE OF OPERATIONS FOR THE
THREE MONTHS THEN ENDED.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                           9,855
<INT-BEARING-DEPOSITS>                           6,613
<FED-FUNDS-SOLD>                                     0
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                     22,925
<INVESTMENTS-CARRYING>                          50,682
<INVESTMENTS-MARKET>                            51,419
<LOANS>                                        557,306
<ALLOWANCE>                                      7,267
<TOTAL-ASSETS>                                 668,504
<DEPOSITS>                                     573,411
<SHORT-TERM>                                    27,500
<LIABILITIES-OTHER>                              5,665
<LONG-TERM>                                      5,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        56,928
<OTHER-SE>                                           0
<TOTAL-LIABILITIES-AND-EQUITY>                 668,504
<INTEREST-LOAN>                                 12,338
<INTEREST-INVEST>                                1,319
<INTEREST-OTHER>                                    88
<INTEREST-TOTAL>                                13,745
<INTEREST-DEPOSIT>                               6,829
<INTEREST-EXPENSE>                               7,341
<INTEREST-INCOME-NET>                            6,404
<LOAN-LOSSES>                                       41
<SECURITIES-GAINS>                                 237
<EXPENSE-OTHER>                                  5,792
<INCOME-PRETAX>                                  1,470
<INCOME-PRE-EXTRAORDINARY>                         941
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       941
<EPS-PRIMARY>                                   $0.180
<EPS-DILUTED>                                   $0.180
<YIELD-ACTUAL>                                   4.010
<LOANS-NON>                                      3,412
<LOANS-PAST>                                         0
<LOANS-TROUBLED>                                 4,296
<LOANS-PROBLEM>                                  6,797
<ALLOWANCE-OPEN>                                 7,215
<CHARGE-OFFS>                                      156
<RECOVERIES>                                       167
<ALLOWANCE-CLOSE>                                7,267
<ALLOWANCE-DOMESTIC>                             7,267
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                          7,138