UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 10-QSB
(Mark One)

    [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
             EXCHANGE ACT OF 1934

             For the quarterly period ended  March 31, 2000
                                            ------------------

                                       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 0-29770


                            WEST ESSEX BANCORP, INC.
-------------------------------------------------------------------------------
        (Exact name of small business issuer as specifed in its charter)


        UNITED STATES                                           22-3597632
--------------------------------------------------------------------------------
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                            Identification Number)


417 Bloomfield Avenue, Caldwell, New Jersey                       07006
--------------------------------------------------------------------------------
(Address of principal executive offices)                        (Zip Code)

Registrant's telephone number, including area code             973-226-7911
                                                               -------------


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date:

      4,038,357  shares  of  common  stock,  par value  $0.01  par  share,  were
outstanding as of April 30, 2000.


Transitional Small Business Disclosure Format (check one):   Yes [_]     No [X]



<PAGE>

                            WEST ESSEX BANCORP, INC.

                                   FORM 10-QSB

                      For the Quarter Ended March 31, 2000


                                      INDEX


<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                            Number
                                                                                                        -------------
<S>                  <C>                                                                                  <C>
PART I                        FINANCIAL INFORMATION

                     Item 1.  Financial Statements                                                             1

                                   Consolidated Statements of Financial Condition at
                                    March 31, 2000 and December 31, 1999 (Unaudited)                           2


                                   Consolidated Statements of Income for the
                                    Three Months Ended March 31, 2000 and 1999 (Unaudited)                     3


                                   Consolidated Statements of Comprehensive Income for the
                                    Three Months Ended March 31, 2000 and 1999 (Unaudited)                     4


                                   Consolidated Statements of Cash Flows for the
                                    Three Months Ended March 31, 2000 and 1999 (Unaudited)                   5 - 6


                                   Notes to Consolidated Financial Statements                                  7

                     Item 2.  Management's Discussion and Analysis or Plan
                                   of Operations                                                             8 - 13



PART II                       OTHER INFORMATION


                     Item 1.                       Legal Proceedings                                            14
                     Item 2.                       Changes in Securities                                        14
                     Item 3.                       Defaults Upon Senior Securities                              14
                     Item 4.                       Submission of Matters to a Vote of Security Holders       14 - 15
                     Item 5.                       Other Information                                            15
                     Item 6.                       Exhibits and Reports on Form 8-K                             15

SIGNATURES                                                                                                      16
</TABLE>
<PAGE>


                            WEST ESSEX BANCORP, INC.
                          PART I. FINANCIAL INFORMATION
                                 March 31, 2000
                  ---------------------------------------------


ITEM 1.  FINANCIAL STATEMENTS

Certain information and footnote  disclosures  required under generally accepted
accounting  principles  have  been  condensed  or  omitted  from  the  following
consolidated  financial  statements pursuant to the rules and regulations of the
Securities and Exchange Commission.  West Essex Bancorp,  Inc. (the "Registrant"
or the "Company") believes that the disclosures presented are adequate to assure
that the information  presented is not misleading in any material respect. It is
suggested  that  the  following  consolidated  financial  statements  be read in
conjunction  with the  year-end  consolidated  financial  statements  and  notes
thereto  included in the  Registrant's  Annual  Report on Form 10-K for the year
ended December 31, 1999.

The results of operations  for the three month period ended March 31, 2000,  are
not  necessarily  indicative of the results to be expected for the entire fiscal
year.

                                       1
<PAGE>
<TABLE>
<CAPTION>
                    WEST ESSEX BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------

                                                                           March 31,            December 31,
                                                                             2000                   1999
                                                                       ----------------       ----------------
                                                                                      (unaudited)
<S>                                                                     <C>                     <C>
Assets

Cash and amounts due from depository institutions                       $   1,546,267           $   5,728,992
Interest-bearing deposits in other banks                                    2,423,406               7,016,853
                                                                        -------------           -------------

       Total cash and cash equivalents                                      3,969,673              12,745,845

Securities available for sale                                               2,922,800               2,923,750
Investment securities held to maturity                                     41,654,118              41,582,003
Mortgage-backed securities held to maturity                               128,744,286             121,223,315
Loans receivable                                                          158,769,455             153,276,187
Real estate owned                                                             997,507                 899,738
Premises and equipment                                                      2,708,366               2,737,456
Federal Home Loan Bank of New York stock                                    3,305,700               3,272,700
Accrued interest receivable                                                 2,028,847               2,005,563
Excess of cost over assets acquired                                         4,495,156               4,643,348
Other assets                                                                3,244,371               2,996,932
                                                                        -------------           -------------

       Total assets                                                     $ 352,840,279           $ 348,306,837
                                                                        =============           =============

Liabilities and Stockholders' Equity

Liabilities

Deposits                                                                $ 236,676,081           $ 234,977,812
Borrowed money                                                             65,997,869              64,340,115
Advance payments by borrowers for taxes and insurance                       1,093,807               1,044,140
Other liabilities                                                           1,320,879                 834,824
                                                                        -------------           -------------

       Total liabilities                                                  305,088,636             301,196,891
                                                                        -------------           -------------

Stockholders' Equity

Preferred stock (par value $.01), 1,000,000 shares
  authorized; no shares issued or outstanding                                      --                      --
Common stock (par value $.01), 9,000,000 shares authorized;
  shares issued 4,197,233; shares outstanding 4,038,357 (2000)
  and 4,054,357 (1999)                                                         41,972                  41,972
Additional paid-in capital                                                 17,329,048              17,332,133
Retained earnings - substantially restricted                               33,774,754              33,054,528
Common stock acquired by Employee Stock Ownership
  Plan ("ESOP")                                                            (1,142,035)             (1,178,874)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                     <C>                     <C>
Unearned Incentive Plan stock                                                (618,936)               (655,549)
Treasury stock, at cost; 158,876 shares (2000) and
  142,876 shares (1999)                                                    (1,584,550)             (1,436,550)
Accumulated other comprehensive loss - Unrealized
  loss on securities available for sale, net of income taxes                  (48,610)                (47,714)
                                                                        -------------           -------------

       Total stockholders' equity                                          47,751,643              47,109,946
                                                                        -------------           -------------

       Total liabilities and stockholders' equity                       $ 352,840,279           $ 348,306,837
                                                                        =============           =============
</TABLE>

See notes to consolidated financial statements.

                                        2
<PAGE>
<TABLE>
<CAPTION>

                    WEST ESSEX BANCORP, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                    -----------------------------------------

                                                                      Three Months Ended March 31,
                                                                ---------------------------------------
                                                                       2000                  1999
                                                                ------------------    -----------------
                                                                                (unaudited)
<S>                                                                <C>                   <C>
Interest income:
     Loans                                                         $ 2,916,530           $ 2,811,087
     Mortgage-backed securities                                      2,047,894             1,784,290
     Investment securities                                             763,780               771,595
     Other interest-earning assets                                     123,789               192,359
                                                                   -----------           -----------

             Total interest income                                   5,851,993             5,559,331
                                                                   -----------           -----------

Interest expense:
     Deposits                                                        2,139,250             2,171,500
     Borrowed money                                                    927,439               653,343
                                                                   -----------           -----------

             Total interest expense                                  3,066,689             2,824,843
                                                                   -----------           -----------

Net interest income                                                  2,785,304             2,734,488
Provision for loan losses
                                                                   -----------           -----------

Net interest income after provision for loan losses                  2,785,304             2,734,488
                                                                   -----------           -----------

Non-interest income:
     Fees and service charges                                           88,558                93,625
     Other                                                              58,490                63,149
                                                                   -----------           -----------

             Total non-interest income                                 147,048               156,774
                                                                   -----------           -----------

Non-interest expenses:
     Salaries and employee benefits                                    827,525               821,745
     Net occupancy expense of premises                                  99,534               102,663
     Equipment                                                         170,543               168,544
     (Income) loss on real estate owned                               (108,239)                7,756
     Amortization of intangibles                                       148,192               148,192
     Other                                                             417,582               467,056
                                                                   -----------           -----------

             Total non-interest expenses                             1,555,137             1,715,956
                                                                   -----------           -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                <C>                   <C>
Income before income taxes                                           1,377,215             1,175,306
Income taxes                                                           497,279               423,727
                                                                   -----------           -----------

Net income                                                         $   879,936           $   751,579
                                                                   ===========           ===========

Net income per common share - basic and diluted                    $      0.23           $      0.18
                                                                   ===========           ===========

Weighted average number of common shares
  outstanding - basic and diluted                                    3,859,029             4,066,089
                                                                   ===========           ===========
</TABLE>

See notes to consolidated financial statements.

                                       3
<PAGE>
<TABLE>
<CAPTION>
                    WEST ESSEX BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------



                                                                               Three Months Ended March 31,
                                                                          ---------------------------------------
                                                                                2000                 1999
                                                                          ------------------   ------------------
                                                                                       (unaudited)

<S>                                                                          <C>                   <C>
Net income                                                                   $ 879,936             $ 751,579

Other comprehensive loss -
           Unrealized holding losses on securities available for sale,
                net of income taxes of $503 and $39,363, respectively             (896)              (70,039)
                                                                            ----------            ----------
Comprehensive income                                                         $ 879,040             $ 681,540
                                                                           ===========           ===========
</TABLE>

See notes to consolidated financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>
                    WEST ESSEX BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                    ------------------------------------------
                                                                                             Three Months Ended March 31,
                                                                                        ---------------------------------------
                                                                                               2000                 1999
                                                                                        ------------------   ------------------
                                                                                                     (unaudited)
<S>                                                                                         <C>                 <C>
Cash flows from operating activities:
      Net income                                                                            $    879,936        $    751,579
      Adjustments to reconcile net income
       to net cash provided by operating activities:
           Depreciation and amortization of premises and equipment                                59,659              60,706
           Net accretion of premiums, discounts and deferred loan fees                           (97,951)            (10,544)
           Amortization of intangibles                                                           148,192             148,192
           (Gain) on sale of real estate owned                                                  (116,033)               --
           (Increase) in accrued interest receivable                                             (23,284)            (73,826)
           (Increase) in other assets                                                           (246,936)           (113,738)
           Increase in interest payable                                                           14,015              17,623
           Increase in other liabilities                                                         489,964             470,127
           Amortization of Incentive Plan cost                                                    36,613                --
           ESOP shares committed to be released                                                   33,754              34,831
                                                                                             -----------         -----------
               Net cash provided by operating activities                                       1,177,929           1,284,950
                                                                                             -----------         -----------
Cash flows from investing activities:
      Proceeds from maturities and calls of investment securities held to maturity                  --            10,000,000
      Purchases of investment securities held to maturity                                           --           (19,244,969)
      Principal repayments on mortgage-backed securities held to maturity                      4,834,711          11,323,919
      Purchases of mortgage-backed securities held to maturity                               (12,337,689)        (16,740,957)
      Purchase of loans receivable                                                              (634,971)           (529,692)
      Net (increase) in loans receivable                                                      (5,016,172)            (91,549)
      Proceeds from sales of real estate owned                                                   183,533                --
      Additions to premises and equipment                                                        (30,569)               --
      Purchase of Federal Home Loan Bank of New York stock                                       (33,000)               --
                                                                                             -----------         -----------
               Net cash (used in) investing activities                                       (13,034,157)        (15,283,248)
                                                                                             -----------         -----------
Cash flows from financing activities:
      Net increase in deposits                                                                 1,680,345             444,212
      Net increase in short-term borrowed money                                                5,000,000                --
      Proceeds of long-term borrowed money                                                          --            10,000,000
      Repayment of long-term borrowed money                                                   (3,342,246)           (322,701)
      Net increase in advance payments by borrowers for taxes and insurance                       49,667              74,019
      Purchases of treasury stock                                                               (148,000)               --
      Cash dividends paid                                                                       (159,710)           (138,533)
                                                                                              ----------          ----------
               Net cash provided by financing activities                                       3,080,056          10,056,997
                                                                                              ----------          ----------
Net (decrease) in cash and cash equivalents                                                   (8,776,172)         (3,941,301)
Cash and cash equivalents - beginning                                                         12,745,845          16,371,431
                                                                                              ----------          ----------

Cash and cash equivalents - ending                                                          $  3,969,673        $ 12,430,130
                                                                                            ============        ============

See notes to consolidated financial statements.
</TABLE>
                                      5
<PAGE>
<TABLE>
<CAPTION>

                    WEST ESSEX BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                    -----------------------------------------


                                                                                        Three Months Ended March 31,
                                                                                   ---------------------------------------
                                                                                         2000                 1999
                                                                                   ------------------   ------------------
                                                                                                (unaudited)

Supplemental  disclosure of cash flow information:
   Cash paid during the year for:
<S>                                                                                  <C>                      <C>
      Income taxes                                                                   $     --                 $     --
                                                                                     ==========               ==========
      Interest                                                                       $3,052,674               $2,807,220
                                                                                     ==========               ==========

Supplemental schedule of noncash investing activities:
      Loans receivable transferred to real estate owned                              $  165,269               $  192,063
                                                                                     ==========               ==========
</TABLE>


See notes to consolidated financial statements.

                                       6

<PAGE>


                    WEST ESSEX BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1.   PRINCIPLES OF CONSOLIDATION

The  consolidated  financial  statements  include  the  accounts  of West  Essex
Bancorp, Inc. (the "Company"), the Company's wholly owned subsidiary, West Essex
Bank (the "Bank") and the Bank's wholly owned  subsidiary,  West Essex Insurance
Agency,  Inc. The Company's business is conducted  principally through the Bank.
All significant  intercompany  accounts and transactions have been eliminated in
consolidation.



2.   BASIS OF PRESENTATION

The accompanying  unaudited  consolidated  financial statements were prepared in
accordance  with  instructions  for Form 10-QSB and  regulations  S-X and do not
include  information  or  footnotes  necessary  for a complete  presentation  of
financial  condition,  results of operations,  and cash flows in conformity with
generally accepted accounting principles. However, in the opinion of management,
all adjustments  (consisting of normal  recurring  adjustments)  necessary for a
fair presentation of the consolidated  financial  statements have been included.
The  results of  operations  for the three  months  ended March 31, 2000 are not
necessarily  indicative  of the  results  which may be  expected  for the entire
fiscal year.



3.  NET INCOME PER COMMON SHARE

Basic net income per common  share is  calculated  by dividing net income by the
weighted average number of shares of common stock outstanding,  adjusted for the
unallocated  portion of shares held by the ESOP in accordance  with the American
Institute of Certified Public  Accountants'  Statement of Position 93-6. Diluted
net income per share is calculated by adjusting the weighted  average  number of
shares of common stock  outstanding  to include the effect of  unallocated  ESOP
shares, unearned Incentive Plan shares and stock options, if dilutive, using the
treasury stock method.  As of and for the quarter ended March 31, 2000,  none of
the potentially  dilutive securities were included in the computation of diluted
net income per share as they were anti-dilutive. As of and for the quarter ended
March 31, 1999, there were no potentially dilutive securities.

                                       7
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
         ---------------------------------------------------------


Small Business Issuer

         West Essex  Bancorp,  Inc. (the  "Company") has met the definition of a
small  business  issuer at the end of the two most  recent  fiscal  years.  As a
result, the Company has elected to file as a small business issuer.

Forward-Looking Statements

         This report  contains  certain  forward-looking  statements  within the
meaning  of  Section  27A of  the  Securities  Act  of  1933,  as  amended  (the
"Securities  Act"),  and Section 21F of the Securities  Exchange Act of 1934, as
amended  (the  "Exchange  Act").   The  Company  intends  such   forward-looking
statements  to be  covered by the safe  harbor  provisions  for  forward-looking
statements  contained  in the  Private  Securities  Reform  Act of 1995,  and is
including  this  statement  for  purposes  of  these  safe  harbor   provisions.
Forward-looking statements,  which are based on certain assumptions and describe
future  plans,  strategies  and  expectations  of  the  Company,  are  generally
identified  by use of the words  "believe,"  "expect,"  "intend,"  "anticipate,"
"estimate," "project," or similar expressions.  The Company's ability to predict
results  or the  actual  effect  of future  plans or  strategies  is  inherently
uncertain.  Factors which could have a material adverse effect on the operations
of the Company and its subsidiaries  include, but are not limited to, changes in
interest rates,  general economic  conditions,  legislative/regulatory  changes,
monetary and fiscal polices of the U.S.  Government,  including  policies of the
U.S.  Treasury and the Federal Reserve Board,  the quality or composition of the
loan  or  investment  portfolios,  demand  for  loan  products,  deposit  flows,
competition,  demand for  financial  services in the  Company's  market area and
accounting  principles and guidelines.  These risks and uncertainties  should be
considered in evaluating  forward-looking  statements and undue reliance  should
not be placed on such statements. Further information concerning the Company and
its business,  including  additional  factors that could  materially  affect the
Company's  financial  results,  is included in the  Company's  filings  with the
Securities and Exchange Commission (the "SEC").

         The  Company  does  not  undertake  - and  specifically  disclaims  any
obligation - to publicly  release the results of any revisions which may be made
to any  forward-looking  statements to reflect events or circumstances after the
date  of  such  statements  or to  reflect  the  occurrence  of  anticipated  or
unanticipated events.

Management's Discussion and Analysis or Plan of Operation

General

         The Company is the federally  chartered  stock holding company for West
Essex Bank, a federally chartered stock savings bank. The Company,  the Bank and
West Essex Bancorp,  M.H.C.,  a mutual holding company and majority owner of the
Company,  are  regulated by the Office of Thrift  Supervision  (the "OTS").  The
Company's and the Bank's  results of operations  are dependent  primarily on net
interest  income,   which  is  the  difference  between  the  income  earned  on
interest-earning assets,  primarily the loan and investment portfolios,  and the
cost of funds,  consisting of interest paid on deposits and borrowings.  Results
of  operations   are  also  affected  by  the  provision  for  loan  losses  and
non-interest expense.  Non-interest expense principally consists of salaries and
employee  benefits,  office  occupancy and equipment  expense,  amortization  of
intangibles,  advertising,  federal deposit insurance premiums, expenses of real
estate owned and other  expenses.  Results of operations are also  significantly
affected by general economic and competitive conditions, particularly changes in
interest rates, government policies and actions of regulatory authorities.


                                       8
<PAGE>

Management Strategy

         The Company's current  strategic plan is to maintain  profitability and
its  well-capitalized  position to take advantage of future  expansion or growth
opportunities,  while managing growth,  maintaining  asset quality,  controlling
expenses and  reducing  exposure to credit and  interest  rate risk.  Management
seeks to accomplish  these goals by: (1) emphasizing its retail banking services
through  its  network of branch  offices,  which  includes  the  origination  of
one-to-four  family  mortgage  loans,  as well as commercial  real estate,  home
equity,  multi-family,  construction  and development and consumer loans, in the
communities it serves as market conditions  permit;  (2) enhancing  earnings and
offsetting the effects of the extreme  competition  for real estate loans in the
Bank's   market  area   primarily   through  the  purchase  of   adjustable-rate
mortgage-backed securities, which provide a source of liquidity, low credit risk
and low administrative cost as well as helping to manage interest rate risk; and
(3) continuing to monitor interest rate risk. Management has aggressively sought
to increase loan  originations  in recent years and was successful in increasing
loans  receivable,  net,  from $82.1  million  at  December  31,  1996 to $140.3
million,  $153.3 million and $158.8  million at December 31, 1998,  December 31,
1999 and March 31, 2000,  respectively.  Management was successful in increasing
loan  originations  primarily by increasing the amount of  advertising  the Bank
does in its primary market area,  paying fees to mortgage  brokers who send loan
applicants  to the Bank to whom the Bank  originates  loans and  providing  cash
incentives  to its mortgage  origination  staff to increase  loan  originations.
Competition,  however, has remained intense in the Bank's market area, which has
resulted in the Company's  total  securities  portfolio  representing  a greater
percentage  of total  assets  than its loan  portfolio  in each of the last five
years.  Management  believes that continuing to seek lending  opportunities,  as
well as  investing  in  mortgage-backed  securities,  the  majority of which are
adjustable-rate,  enables the Company to  effectively  control its interest rate
risk while at the same time  enabling it to maintain a balance of high  quality,
diversified  investments,  provide collateral for short and long-term borrowings
and lessen exposure to credit risk.


Comparison of Financial Condition at March 31, 2000 and December 31, 1999

         Total assets were $352.8 million at March 31, 2000,  compared to $348.3
million at December 31, 1999, an increase of $4.5 million, or 1.3%. The increase
in assets was funded  primarily  by  increases in deposits and Federal Home Loan
Bank of New York ("FHLB") borrowings of $1.7 million each.

         Cash and cash equivalents, primarily interest-bearing deposits with the
FHLB,  decreased  $8.7  million  to $4.0  million  at March 31,  2000 from $12.7
million at December 31, 1999. The decrease in cash and cash equivalents was used
primarily to fund additional investments in mortgage-backed  securities and loan
originations.

         In the aggregate, mortgage-backed securities and investment securities,
including  available-for-sale  and  held to  maturity  issues,  totalled  $173.3
million at March 31, 2000,  an increase of $7.6  million,  or 4.6%,  from $165.7
million  at  December  31,  1999.  Such  increase  was  largely  funded  by  the
aforementioned   decrease   in  cash  and  cash   equivalents.   Mortgage-backed
securities,  all of which are held to  maturity,  increased  $7.5 million due to
purchases  exceeding  repayments.  Investment  securities  held to maturity  and
securities available for sale reflected only marginal changes.

         Loans receivable  increased by $5.5 million, or 3.6%, to $158.8 million
at March 31, 2000 from $153.3  million at December 31, 1999.  Such  increase was
funded by the aforementioned decrease in cash and cash equivalents and by a $1.7
million increase in borrowings.

                                       9
<PAGE>

         Deposits totalled $236.7 million at March 31, 2000, an increase of $1.7
million, or 0.7%, over the $235.0 million balance at December 31, 1999.

         Borrowed  money  increased  $1.7 million to $66.0  million at March 31,
2000,  as compared to $64.3  million at December  31,  1999.  During the quarter
ended March 31, 2000,  long-term  debt of $3.3 million was repaid and short-term
borrowings were increased by $5.0 million.

         Stockholders'  equity  increased  $642,000,  or 1.4%, to $47.8 million,
primarily due to the retention of net income.


Comparison  of  Operating  Results for the Three Months Ended March 31, 2000 and
1999

         Net Income.  Net income increased $128,000 or 17.0% to $880,000 for the
three  months  ended March 31, 2000  compared  with  $752,000  for the same 1999
period.  The increase in net income  during the 2000 period  resulted  primarily
from a $51,000  increase  in net  interest  income  and a $161,000  decrease  in
non-interest expense, which were partially offset by an increase in income taxes
of $73,000.

         Interest Income.  Total interest income  increased  $293,000 or 5.3% to
$5.85  million for the three months ended March 31, 2000 from $5.56  million for
the same 1999 period.  The increase was the result of a $16.6 million,  or 5.2%,
increase in average  interest-earning assets between the periods, as the average
yield on interest earning assets was 6.99% during both periods.  The increase in
the average balance was the result of loan originations and securities purchased
during the past twelve months funded by increased borrowed money.

         Interest  income on loans increased by $105,000 or 3.7% to $2.9 million
during the three months ended March 31, 2000 when compared with $2.8 million for
the same 1999  period.  The  increase  during the 2000 period  resulted  from an
increase  of  $14.4  million,   or  10.1%,  in  the  average  balance  of  loans
outstanding,  which was  sufficient to offset a 46 basis point decrease to 7.43%
in the yield earned on the loan portfolio. The increased average balance was the
result of continued  strength in lending  volume during the last twelve  months.
The decreased yield is the result of lower rates obtained on originations during
the second and third quarters of 1999, many of which represented refinancings of
higher yield loans, as well as downward interest rate adjustments on many of the
Bank's adjustable-rate mortgage loans.

         Interest   on   mortgage-backed    securities,   all   of   which   are
held-to-maturity, increased $264,000, or 14.8%, to $2.0 million during the three
months  ended March 31, 2000 when  compared  with $1.8 million for the same 1999
period.  The increase  during the 2000 period  resulted from  increases of $11.1
million,  or 9.7%, in the average balance of  mortgage-backed  securities and 28
basis points, to 6.53%, in yield. The increased average balance is the result of
purchases exceeding  repayments of mortgage-backed  securities.  The increase in
yield is the result of higher  interest rates  obtained on securities  purchased
since March 31, 1999.

         Interest    earned   on   investment    securities,    including   both
available-for-sale and held-to-maturity  issues,  decreased by $8,000 or 1.0% to
$764,000 during the three months ended March 31, 2000, when compared to $772,000
during the same 1999 period,  primarily  due to a decrease of $1.4  million,  or
3.1%, in the average  balance of such assets,  which more than offset a 14 basis
point increase to 6.86% in the yield earned.

                                       10
<PAGE>

         Interest on other interest-earning  assets decreased $68,000, or 35.4%,
to $124,000 during the three months ended March 31, 2000 as compared to $192,000
for the same 1999 period. The decrease was due to a decrease of $7.6 million, or
49.0%, in the average balance of such assets,  which was partially  offset by an
increase of 133 basis  points,  to 6.29%,  in the yield  earned.  The decline in
average balance was the result of the redeployment of funds previously  invested
in  short-term   interest  bearing  deposits  into  higher  yielding  loans  and
mortgage-backed  securities.  The  increase  yield  is  reflective  of both  the
declining investment in lower yielding assets and the general increase in market
interest rates.

         Interest Expense.  Interest expense on deposits decreased  $33,000,  or
1.5%, to $2.1 million during the three months ended March 31, 2000 when compared
to $2.2  million  during  the same 1999  period.  Such  decrease  was  primarily
attributable  to a  decrease  of 2  basis  points,  to  3.89%,  in the  cost  of
interest-bearing  deposits,  along with a $2.8 million, or 1.2%, decrease in the
average balance  thereof.  The average cost of certificates of deposit was 5.03%
for both the three  months  ended March 31, 2000 and 1999.  The average  cost of
non-certificate deposits decreased to 1.83% for the three months ended March 31,
2000 as compared to 1.94% for the same prior year period.

         Interest expense on borrowed money increased by $275,000,  or 42.1%, to
$928,000  during  the three  months  ended  March 31,  2000 when  compared  with
$653,000  during the same 1999  period,  primarily  due to an  increase of $17.2
million,  or 35.8%,  in the average balance of borrowings  outstanding  from the
FHLB,  along with a 26 basis point  increase,  to 5.70%, in the cost of borrowed
money.  During the three  months  ended  March 31,  2000,  the Bank  repaid $3.3
million in long-term  borrowings  having an average  interest  rate of 5.30% and
increased  short-term   borrowings  by  $5.0  million.   Included  in  long-term
borrowings  repaid was $3.0 million having an interest rate of 5.23% due in 2008
on which the lender  exercised  its option to convert  such debt to  replacement
funding at the current market rate. The Bank opted to repay this amount.

         Net Interest Income.  Net interest income increased  $51,000,  or 1.9%,
during the three months ended March 31, 2000,  when  compared with the same 1999
period.  Such  increase  was due to an  increase  in total  interest  income  of
$293,000, partially offset by an increase in total interest expense of $242,000.
The Bank's net  interest  rate spread  decreased  to 2.68% in 2000 from 2.81% in
1999.  The decrease in the interest  rate spread  resulted from a 13 basis point
increase in the cost of  interest-bearing  liabilities.  Despite the decrease in
the net interest rate spread, net interest income improved due to the additional
income generated by a $16.6 million increase in average interest-earning assets,
which more than offset the additional cost incurred by a $14.4 million  increase
in average interest-bearing liabilities.

         Provision for Loan Losses. During both the three months ended March 31,
2000 and  1999,  the Bank did not  record a  provision  for loan  losses  as the
existing  balance of the  allowance  for loan  losses was  considered  adequate.
During the three months ended March 31, 2000, loan charge-offs  totalled $35,000
and there were no loan recoveries. During the three months ended March 31, 1999,
loan  charge-offs  totalled less than $1,000 and there were no loan  recoveries.
The  allowance for loan losses is based on  management's  evaluation of the risk
inherent in its loan  portfolio  and gives due  consideration  to the changes in
general  market  conditions  and in the nature  and  volume of the  Bank's  loan
activity.  The Bank  intends to continue to provide for loan losses based on its
periodic  review of the loan portfolio and general market  conditions.  At March
31, 2000 and 1999,  loans delinquent  ninety days or more totalled  $221,000 and
$1.3 million, respectively, representing 0.14% and 0.91%, respectively, of total
loans.  At March 31, 2000, the allowance for loan losses stood at $1.37 million,
representing  0.85% of total loans and 618.9% of loans delinquent ninety days or
more.  At December  31,  1999,  the  allowance  for loan  losses  stood at $1.40
million, representing 0.90% of total loans and 176.8% of loans delinquent ninety
days or more.  At March 31, 1999,  the  allowance for loan losses stood at $1.72
million, representing 1.19% of total loans and 130.7% of loans delinquent ninety
days or more.  The  $351,000  decrease in the  allowance  during the past twelve
months  primarily  reflects the final  resolution in 1999 of the Bank's  largest
nonperforming  loan,  which  resulted  in a  charge-off  of  $316,000.  The Bank
monitors its loan  portfolio  on a  continuing  basis and intends to continue to
provide for loan losses based on its ongoing  review of the loan  portfolio  and
general market conditions.
                                       11
<PAGE>

         The Bank has established a standardized  process to assess the adequacy
of the allowance for loan losses and to identify the risks  inherent in the loan
portfolio.  The process  incorporates  credit reviews and gives consideration to
areas of exposure such as concentrations of credit,  local economic  conditions,
trends in delinquencies,  collateral coverage, the composition of the performing
and  non-performing  loan  portfolios,  and  other  risks  inherent  in the loan
portfolio.

         Specific allocations of the allowance for loan losses are identified by
individual loan based upon a detailed  credit review of each such loan.  General
loan loss  allowances  are allocated to pools of loans  categorized  by type and
assigned allowance  percentages which take into effect past charge-off  history,
industry averages and current trends and risks.  Finally, an unallocated portion
of the allowance is  maintained to account for the general  inherent risk in the
loan  portfolio,  known  circumstances  which are not addressed in the allocated
portion of the allowance (such as the increased  dependence on outside  mortgage
brokers for originations), and the necessary imprecision in the determination of
the allocation portion of the allowance.

         Management believes that, based on information currently available, the
allowance  for loan losses is  sufficient  to cover losses  inherent in the loan
portfolio at this time. However, no assurance can be given that the level of the
allowance  for loan losses will be  sufficient  to cover  future  possible  loan
losses or that future  adjustments  to the allowance for loan losses will not be
necessary  if  economic  and  other  conditions  differ  substantially  from the
economic and other conditions  considered by management to determine the current
level of the allowance for loan losses.  Management  may in the future  increase
the level of the  allowance  for loan losses as a percentage  of total loans and
non-performing  loans in the event it  increases  the level of  commercial  real
estate,  multifamily,  or  consumer  lending as a  percentage  of the total loan
portfolio.  In addition,  various  regulatory  agencies,  as an integral part of
their examination  process,  periodically  review the allowance for loan losses.
Such agencies may require the Bank to provide  additions to the allowance  based
upon judgments different from those of management.

         The  allowance  for  loan  losses   includes   specific,   general  and
 unallocated  allowances  of $- 0 - , $941,000 and  $424,000,  respectively,  at
 March 31, 2000, as compared to $50,000, $878,000 and $472,000,
respectively, at December 31, 1999.

         Non-Interest Income. Non-interest income decreased $10,000, or 6.4%, to
$147,000  during the three months ended March 31, 2000 from $157,000  during the
same 1999 period.

         Non-Interest Expenses.  Non-interest expenses decreased by $161,000, or
9.4%,  to $1.56  million  during  the three  months  ended  March 31,  2000 when
compared with $1.72 million  during the same 1999 period.  The most  significant
change in non-interest  expense occurred in relation to real estate owned, where
income of $108,000 was recorded during the three months ended March 31, 2000, as
compared  to an  $8,000  loss  in the  comparable  prior  period.  The  $116,000
improvement was due to gains of $116,000 on real estate sales during the current
quarter as opposed to no sales in the prior period quarter.

         Salaries and employee  benefits,  the largest component of non-interest
expenses,  increased  $6,000, or 0.7%, to $828,000 during the three months ended
March 31,  2000 from  $822,000  during the prior year  quarter.  Other  expenses
declined $49,000,  or 10.5%, to $418,000 during the three months ended March 31,
2000 from $467,000 during the comparable prior period,  due largely to decreases
in legal fees and the cost of federal deposit  insurance.  All other elements of
non-interest  expense,  which  includes  occupancy  and  equipment  expense  and
amortization  of  intangibles,  remained little changed at $418,000 and $419,000
during the three months ended March 31, 2000 and 1999, respectively.

         Income Taxes. Income tax expense totalled $497,000,  or 36.1% of income
before income taxes, during the three months ended March 31, 2000 as compared to
$424,000,  or 36.1% of income before income taxes,  during the  comparable  1999
period.
                                       12
<PAGE>


Liquidity and Capital Resources

         The  Company's and Bank's  primary  sources of funds on a long-term and
short-term  basis  are  deposits,  principal  and  interest  payments  on loans,
mortgage-backed and investment securities and FHLB borrowings. The Bank uses the
funds generated to support its lending and investment  activities as well as any
other demands for  liquidity  such as deposit  outflows.  While  maturities  and
scheduled amortization of loans are predictable sources of funds, deposit flows,
mortgage  prepayments  and the exercise of call features on debt  securities are
greatly   influenced  by  general  interest  rates,   economic   conditions  and
competition.  The Bank has  continued to maintain the required  levels of liquid
assets as defined by OTS regulations.  This requirement of the OTS, which may be
varied at the  direction  of the OTS  depending  upon  economic  conditions  and
deposit flows, is based upon a percentage of deposits and short-term borrowings.
The Bank's  currently  required  liquidity  ratio is 4.0%. At March 31, 2000 and
December  31,  1999,  the Bank's  regulatory  liquidity  ratios  were 25.14% and
25.40%, respectively.

         At March 31,  2000,  the Bank  exceeded all of its  regulatory  capital
requirements  with a tangible capital level of $37.6 million,  or 10.8% of total
adjusted  assets,  which is above the required  level of $5.2 million,  or 1.5%;
core capital of $37.6 million, or 10.8% of total adjusted assets, which is above
the required  level of $13.9 million,  or 4.0%; and risk-based  capital of $38.9
million, or 28.7% of risk-weighted  assets, which is above the required level of
$10.9 million, or 8.0%.

         The  Company's  most liquid  assets are cash and cash  equivalents  and
securities  available  for sale.  The levels of these  assets are  dependent  on
operating,  financing, lending and investing activities during any given period.
At March 31, 2000, cash and cash  equivalents and securities  available for sale
totalled $6.9 million, or 2.0% of total assets.

         The  Company,  through  its  Bank  subsidiary,  has  other  sources  of
liquidity if a need for additional funds arises,  including FHLB borrowings.  At
March 31, 2000,  the Bank had $66.0 million in borrowings  outstanding  from the
FHLB.  Depending on market conditions,  the pricing of deposit products and FHLB
borrowings,  the Bank may  continue  to rely on FHLB  borrowings  to fund  asset
growth.

         At March 31, 2000,  the Bank had  commitments to originate and purchase
loans and fund unused  outstanding  lines of credit and undisbursed  proceeds of
construction  mortgages  totalling  $17.6 million and no commitments to purchase
securities. The Bank anticipates that it will have sufficient funds available to
meet  its  current  commitments.   Certificate  accounts,  including  Individual
Retirement Account accounts, which are scheduled to mature in less than one year
from  March  31,  2000,   totalled  $113.9   million.   The  Bank  expects  that
substantially all of the maturing  certificate  accounts will be retained by the
Bank.

         The initial impact of the  reorganization and offering on the liquidity
and capital  resources of the Company was to  substantially  increase the liquid
assets  of the  Company  and the  capital  base on which the  Company  operates.
Subsequently,  a substantial  majority of the offering  proceeds was invested in
readily marketable investment grade securities. The additional capital resulting
from the  offerings  increased the capital bases of the Company and the Bank. At
March 31,  2000,  the  Company  and the Bank had  total  equity,  determined  in
accordance with generally accepted accounting  principles,  of $47.8 million and
$42.0 million,  respectively, or 13.5% and 12.0%, respectively, of total assets.
The Bank's regulatory  tangible capital at that date, which excludes  intangible
assets of $4.5 million and unrealized  securities losses, net of deferred income
taxes,  of $49,000,  was $37.6 million,  or 10.8% of adjusted  total assets.  An
institution with a ratio of tangible capital to adjusted total assets of greater
than or equal to 5.0% is  considered  to be  "well-capitalized"  pursuant to OTS
regulations.

                                       13
<PAGE>


                            WEST ESSEX BANCORP, INC.
                           PART II . OTHER INFORMATION
                                 March 31, 2000


ITEM 1. Legal Proceedings

          The  Company  and the Bank are  parties  to various  litigation  which
          arises primarily in the ordinary course of business.  Included in this
          litigation are various claims and lawsuits involving the Bank, such as
          claims to enforce  liens,  condemnation  proceedings  on properties in
          which the Bank holds security  interest,  claims  involving the making
          and servicing of real property loans and other issues  incident to the
          Bank's   business.   In  the  opinion  of  management,   the  ultimate
          disposition of such  litigation  should not have a material  effect on
          the consolidated financial position or operations 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

          The 2000 Annual  Meeting of  Stockholders  was held on April 27, 2000.
          The following matters were submitted to the stockholders:

          1.  Election of two directors:

              A. Directors elected at the meeting for terms to expire in 2003:


                                                     Number of Shares
                                            ------------------------------------
                                                  For               Withheld
                                            -----------------  -----------------

                  Mr. William J. Foody         3,818,377             72,851
                  Mr. Leopold W. Montanaro     3,807,876             83,352



                               The  following  directors'  terms of  office as a
          director continued after the meeting:

                 (i)      Mr. David F. Brandly
                 (ii)     Mr. John J. Burke
                 (iii)    Mr. Everett N. Leonard
                 (iv)     Mr. James P. Vreeland


                                       14

<PAGE>

                            WEST ESSEX BANCORP, INC.
                           PART II . OTHER INFORMATION
                                 March 31, 2000



ITEM 4. Submission of Matters to a Vote of Security Holders  (Cont'd.)
<TABLE>
<CAPTION>
                                                                                        Number of Shares
                                                              ---------------------------------------------------------------------
                                                                   For              Against          Abstained          Non-Vote
                                                              ----------------  -----------------  ---------------  ---------------
<S>                                                            <C>                  <C>                <C>            <C>
   2.  The ratification of Amendments to the West Essex
        Bancorp, Inc. 1999 Stock-Based Incentive Plan.          1,378,216            157,307            5,584          2,350,121

   3.  The ratification of Radics & Co., LLC
        as independent auditors of the
        Company for the fiscal year
        ending December 31, 2000.                               3,857,644             32,105            1,478            -

   4.  Stockholder proposal to recommend that the
        Board of Directors take whatever actions
        necessary to enhance shareholder value                    246,282          3,001,450          261,811            381,685

</TABLE>


ITEM 5. Other Information

          None

ITEM 6. Exhibits and Reports on Form 8-K

(a)      Exhibits:

          3.1     Charter of West Essex Bancorp, Inc.  *
          3.2     Bylaws of West Essex Bancorp, Inc.  *
          4.0     Form of Common Stock Certificate  *
         11.0     Statement regarding computation of per share earnings
         27.0     Financial Data Schedule

              *   Incorporated  herein by reference  into this document from the
                  Exhibits to Form S-1 Registration Statement and any amendments
                  thereto, Registration No. 333-56729.

(b)      Reports on Form 8-K:

                  None

                                       15
<PAGE>


                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.




                                  WEST ESSEX BANCORP, INC.


Date:    May 12, 2000             By  /s/ Leopold W. Montanaro
      ------------------------       ------------------------------
                                     Leopold W. Montanaro
                                      President and Chief Executive Officer
                                       (Principal Executive Officer)



Date:    May 12, 2000             By:  /s/ Dennis A. Petrello
      ------------------------        ---------------------------
                                       Dennis A. Petrello
                                        Executive Vice President and
                                          and Chief Financial Officer
                                           (Principal Financial and
                                             Accounting Officer)

                                       16