SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 10-Q

              Quarterly Report Pursuant to Section 13 or 15 (d) of
                      The Securities Exchanges Act of 1934

For the quarter ended                               Commission File No.  0-22058
  September 30, 2000

                        MERCHANTS NEW YORK BANCORP, INC.
             (Exact name of registrant as specified in its charter)

          Delaware                                        13-3650812
(State or other jurisdiction of             (I.R.S. employer identification no.)
incorporation or organization)

   275 Madison Avenue, New York, N.Y.                    10016-0001
(Address or principal executive offices)                 (Zip Code)

        Registrant's telephone number, including area code: (212)973-6600

      Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.          Yes  X         No
                                                       ---           ---

      As of November 3, 2000, there were 18,647,793 shares of common stock
outstanding, the Registrant's only class of stock.


<PAGE>

                           Merchants New York Bancorp

                        Quarter Ended September 30, 2000

                                                                            Page

Part  I  Financial Information

    Item 1.  Financial Statements (Unaudited)

          Consolidated Balance Sheets                                        2

          Consolidated Statements of Income and
               Comprehensive Income                                          3

          Consolidated Statements of Changes in Stockholders' Equity         4

          Consolidated Statements of Cash Flows                              5

          Notes to Consolidated Financial Statements                         6

    Item 2.  Management's Discussion and Analysis of
       Financial Condition and Results of Operations                         8

    Item 3.  Quantitative and Qualitative Disclosures About
       Market Risk                                                          15

Part  II  Other Information

    Item 6.  Exhibits and Reports on Form 8-K                               18


Signatures                                                                  19


<PAGE>

                           Merchants New York Bancorp

                           Consolidated Balance Sheets

Part I - Item 1, Financial Statements

<TABLE>
<CAPTION>
                                                                                          September 30, 2000      December 31, 1999
                                                                                          ------------------      -----------------
                                                                                                 (Unaudited)
<S>                                                                                          <C>                    <C>
Assets
          Cash and due from banks ....................................................       $    43,072,119        $    32,940,883
          Federal funds sold .........................................................             8,000,000             50,000,000
          Securities available for sale, at market value .............................           567,492,364            649,931,593
          Securities held to maturity (market value of $242,270,656 in
                    2000 and $195,169,226 in 1999) ...................................           242,287,366            197,988,432
                                                                                             ---------------        ---------------
                           Total securities ..........................................           809,779,730            847,920,025
                                                                                             ---------------        ---------------
          Loans, net of unearned discounts ...........................................           547,518,791            437,097,287
                    Less allowance for loan losses ...................................            10,300,353              9,108,216
                                                                                             ---------------        ---------------
                           Total loans, net ..........................................           537,218,438            427,989,071
                                                                                             ---------------        ---------------
          Premises and equipment, net ................................................             6,015,397              5,992,660
          Customers' liability on acceptances ........................................            19,328,937             12,134,217
          Other assets ...............................................................            16,434,520             18,336,292
                                                                                             ---------------        ---------------
                    Total Assets .....................................................       $ 1,439,849,141        $ 1,395,313,148
                                                                                             ===============        ===============
Liabilities and Stockholders' Equity
          Deposits:

                    Demand ...........................................................       $   276,454,844        $   312,300,580
                    NOW ..............................................................            54,354,078             51,214,572
                    Savings ..........................................................            27,148,863             28,865,561
                    Money market .....................................................           219,309,881            191,972,362
                    Time .............................................................           379,087,684            374,625,133
                                                                                             ---------------        ---------------
                    Total deposits ...................................................           956,355,350            958,978,208
          Securities sold under repurchase agreements ................................           260,000,000            185,000,000

          FHLB term advances .........................................................            70,000,000            105,000,000
          Other short-term borrowings ................................................            14,919,718             20,047,500
          Acceptances outstanding ....................................................            19,328,937             12,134,217
          Other liabilities ..........................................................            14,949,427             14,945,286
                                                                                             ---------------        ---------------
                    Total Liabilities ................................................         1,335,553,432          1,296,105,211

Stockholders' Equity*
          Capital stock: $.001 par value; 40,000,000 authorized shares;
                    19,978,664 shares issued in 2000 and 1999 ........................                19,978                 19,978
          Surplus ....................................................................            23,879,440             23,879,363
          Undivided profits ..........................................................           104,512,761             95,012,110
          Treasury stock at cost: 1,331,121 and 856,160 shares
                    in 2000 and 1999, respectively ...................................           (20,480,089)           (12,570,633)
          Accumulated other comprehensive loss, net of tax:
                    Unrealized depreciation on securities available for sale .........            (3,636,381)            (7,132,881)
                                                                                             ---------------        ---------------
                    Total Stockholders' Equity .......................................           104,295,709             99,207,937
                                                                                             ---------------        ---------------
                    Total Liabilities and Stockholders' Equity .......................       $ 1,439,849,141        $ 1,395,313,148
                                                                                             ===============        ===============
</TABLE>

* Shares are adjusted for 2-1 stock split, effective October 1999.

See accompanying notes to consolidated financial statements.


                                       2
<PAGE>

                           Merchants New York Bancorp

            Consolidated Statements of Income & Comprehensive Income
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                   Three Months Ended Sept. 30,      Nine Months Ended Sept. 30,
                                                                       2000            1999            2000             1999
                                                                   ----------------------------     ----------------------------
<S>                                                                <C>             <C>              <C>             <C>
Interest and Dividend Income
  Loans ......................................................     $12,643,841     $ 9,316,062      $33,779,905     $24,399,759
  Investment securities:
    Taxable ..................................................      13,440,394      12,607,255       41,122,837      37,563,150
    Non-taxable ..............................................       1,110,026       1,112,097        3,407,851       3,440,290
  Other interest income ......................................         201,745          60,165          778,066         373,176
                                                                   -----------     -----------      -----------     -----------
    Total interest and dividend income .......................      27,396,006      23,095,579       79,088,659      65,776,375
                                                                   -----------     -----------      -----------     -----------
Interest Expense
  Deposits ...................................................       7,820,328       6,389,830       21,679,934      19,290,926
  Securities sold under repurchase agreements ................       3,948,944       2,416,667       10,128,168       6,481,630
  FHLB term advances .........................................       1,210,096         920,364        3,694,240       2,120,287
  Other short-term borrowings ................................         246,188         304,478          751,383         502,268
                                                                   -----------     -----------      -----------     -----------
    Total interest expense ...................................      13,225,556      10,031,339       36,253,725      28,395,111
                                                                   -----------     -----------      -----------     -----------
    Net Interest Income ......................................      14,170,450      13,064,240       42,834,934      37,381,264
  Provision for loan losses ..................................         850,000         615,000        2,475,000       1,215,000
                                                                   -----------     -----------      -----------     -----------
    Net interest income after provision for loan losses ......      13,320,450      12,449,240       40,359,934      36,166,264
                                                                   -----------     -----------      -----------     -----------
Non Interest Income
  Service fees and other charges .............................         439,835         363,433        1,231,813         993,281
  International department services ..........................         887,473         874,254        2,547,512       2,371,379
  Fee income .................................................         563,767         497,093        1,713,074       1,327,391
  Securities gains, net ......................................               0               0                0          75,881
                                                                   -----------     -----------      -----------     -----------
    Total non interest income ................................       1,891,075       1,734,780        5,492,399       4,767,932
                                                                   -----------     -----------      -----------     -----------
Non Interest Expense
  Salaries and employee benefits .............................       3,711,687       3,495,703       11,542,181      11,036,371
  Net occupancy ..............................................         666,320         705,548        2,051,743       1,998,127
  Equipment ..................................................         190,676         230,590          625,283         697,756
  Other expenses .............................................       1,424,771       1,788,078        5,422,470       5,351,232
                                                                   -----------     -----------      -----------     -----------
    Total non interest expense ...............................       5,993,454       6,219,919       19,641,677      19,083,486
                                                                   -----------     -----------      -----------     -----------
  Income before income taxes .................................       9,218,071       7,964,101       26,210,656      21,850,710
  Provision for income taxes .................................       2,833,488       2,463,530        8,818,872       7,177,021
                                                                   -----------     -----------      -----------     -----------
    Net Income ...............................................     $ 6,384,583     $ 5,500,571      $17,391,784     $14,673,689
                                                                   -----------     -----------      -----------     -----------
Earnings per share*:
  Basic ......................................................           $0.34           $0.29            $0.93           $0.76
  Diluted ....................................................            0.34            0.29             0.93            0.76
                                                                   ===========     ===========      ===========     ===========
Comprehensive income
Net income ...................................................     $ 6,384,583     $ 5,500,571      $17,391,784     $14,673,689
Other comprehensive income, net of tax:
  Unrealized appreciation (depreciation) on securities
    available for sale during the period .....................       4,817,715      (1,061,538)       3,496,500      (6,682,217)
Reclassification for gains included in net income ............               0               0                0         (75,881)
                                                                   -----------     -----------      -----------     -----------
  Comprehensive income .......................................     $11,202,298     $ 4,439,033      $20,888,284     $ 7,915,591
                                                                   ===========     ===========      ===========     ===========
</TABLE>

* Adjusted for 2 for 1 stock split, effective 10/1/99.

See accompanying notes to consolidated financial statements.


                                       3
<PAGE>

                           Merchants New York Bancorp

           Consolidated Statements of Changes in Stockholders' Equity
                                   (Unaudited)

For the nine months ended September 30,             2000             1999
---------------------------------------         ------------     ------------
Capital stock:

  Balance at beginning and
    end of period ..........................    $     19,978     $     19,978
                                                ------------     ------------
Surplus:

  Balance at beginning of year .............      23,879,363       23,879,363

  Common stock issued from
    treasury stock .........................              77                0
                                                ------------     ------------
  Balance at end of period .................      23,879,440       23,879,363
                                                ------------     ------------

Undivided profits:

  Balance at beginning of year .............      95,012,110       86,304,445

  Net income ...............................      17,391,784       14,673,689

  Cash dividends paid ......................      (7,034,301)      (6,278,808)

  Common stock issued from
    treasury stock .........................        (856,832)      (1,608,424)
                                                ------------     ------------
  Balance at end of period .................     104,512,761       93,090,902
                                                ------------     ------------
Treasury stock:
  Balance at beginning of year .............     (12,570,633)      (6,301,081)
  Repurchase of 546,200 and 365,200
    shares of common stock in 2000
    and 1999, respectively* ................      (9,126,347)      (6,222,650)

  Issuance of 71,239 and 120,254 shares
    of common stock in 2000 and 1999,
    respectively* ..........................       1,216,891        2,227,128
                                                ------------     ------------
  Balance at end of period .................     (20,480,089)     (10,296,603)
                                                ------------     ------------

Accumulated other comprehensive income:

  Net unrealized (depreciation)
    appreciation on securities available
    for sale, net of tax effect

  Balance at beginning of year .............      (7,132,881)       9,075,500

  Changes during the period,
    net of tax .............................       3,496,500       (6,682,217)
                                                ------------     ------------
  Balance at end of period .................      (3,636,381)       2,393,283
                                                ------------     ------------

Total stockholders' equity

  Balance at beginning of year .............      99,207,937      112,978,205

  Changes during the period, net ...........       5,087,772       (3,891,282)
                                                ------------     ------------
  Total ending balance .....................    $104,295,709     $109,086,923
                                                ============     ============

* Shares are adjusted for 2-1 stock split, effective October 1999.

See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

                           Merchants New York Bancorp

                      Consolidated Statements of Cash Flows
                                   (Unaudited)

For the nine months ended September 30,                   2000             1999
---------------------------------------          -------------    -------------

Operating activities:
  Net income .................................   $  17,391,784    $  14,673,689
                                                 -------------    -------------
Adjustments to reconcile net
  income to net cash provided
  by operating activities:
  Depreciation ...............................         778,966          815,139
  Amortization of premium,
    net of discounts .........................       1,276,222        3,616,870
  Provision for loan losses ..................       2,475,000        1,215,000
  Gain on sales ..............................               0          (75,881)
  (Decrease) increase in
    unearned discounts .......................         (11,103)          14,271
  (Increase) decrease in other
    assets ...................................      (1,876,229)       1,197,690
  Increase (decrease) in other
    liabilities ..............................           4,141       (1,975,561)
                                                 -------------    -------------
    Net cash provided by operating
      activities .............................      20,038,781       19,481,217
                                                 -------------    -------------
Investing activities:
  Net decrease (increase) in federal
    funds sold ...............................      42,000,000       (1,000,000)
  Proceeds from redemptions of securities
    available for sale .......................     123,760,831      130,116,573
  Proceeds from sales of securities
    available for sale .......................               0       15,015,000
  Purchase of securities available
    for sale .................................     (47,565,653)    (129,043,026)
  Proceeds from redemptions of held
    to maturity securities ...................      27,968,102       40,923,423
  Purchase of held to maturity securities ....     (60,110,421)     (26,601,323)
  Net increase in customer loans .............    (111,693,263)    (101,233,415)
  Net increase in bank premises and
    equipment ................................        (715,989)        (210,572)
                                                 -------------    -------------
    Net cash used by investing activities ....     (26,356,393)     (72,033,340)
                                                 -------------    -------------
Financing activities:
  Decrease in demand deposits, NOW,
    savings and money market accounts ........      (7,085,409)      (9,475,624)
  Net increase (decrease) in certificates
    of deposit ...............................       4,462,551      (26,819,439)
  Increase in securities sold under
    repurchase agreements ....................      75,000,000       10,000,000
  (Decrease) increase in FHLB term
    advances .................................     (35,000,000)      85,000,000
  (Decrease) increase in other short-term
    borrowings ...............................      (5,127,782)      10,209,574
  Proceeds from issuance of common stock .....         360,136          618,704
  Purchases of treasury stock ................      (9,126,347)      (6,222,650)
  Dividends paid .............................      (7,034,301)      (6,278,808)
                                                 -------------    -------------
    Net cash provided by financing
      activities .............................      16,448,848       57,031,757
                                                 -------------    -------------
Net increase in cash and cash equivalents ....      10,131,236        4,479,634
Cash and cash equivalents at beginning
  of the period ..............................      32,940,883       38,435,946
Cash and cash equivalents at end of
  the period .................................   $  43,072,119    $  42,915,580
                                                 =============    =============
Supplemental disclosure of cash flow
  information:
  Interest paid ..............................   $  35,683,842    $  30,580,631
  Taxes paid .................................       8,882,895        6,901,754
                                                 =============    =============

See accompanying notes to consolidated financial statements.


                                       5

<PAGE>

                           Merchants New York Bancorp

Notes to Consolidated Financial Statements

      1. The consolidated financial statements include the accounts of Merchants
New York Bancorp (the "Company") and its wholly owned subsidiary, The Merchants
Bank of New York (the "Bank"), and the Bank's wholly-owned subsidiaries,
Merchants New York Commercial Corporation and MBNY Holdings Corporation and its
subsidiary, Merchants Capital Corporation. All material intercompany accounts
and transactions have been eliminated in consolidation.

The consolidated financial statements as of and for the interim periods ended
September 30, 2000 and 1999 are unaudited. All adjustments, which consist of
normal accruals necessary for the fair presentation of such periods have been
made. Certain reclassifications have been made to the 1999 financial statements
to conform to the current presentation. The interim financial statements should
be read in conjunction with Bancorp's Annual Report on Form 10 - K for the year
ended December 31, 1999.

      2. On September 5, 2000, the Company entered into a definitive merger
agreement with Valley National Bancorp (VNB) for common stock valued at $375
million, based on VNB's market value. Pursuant to the agreement, the Company
will be merged into VNB and the Bank will be merged into Valley National Bank.
The acquisition of the Company is structured as a tax-free merger to be
accounted for as a pooling of interests. Each of the Company's common stock will
be exchanged for .7634 shares of VNB common stock. Valley National Bank
(principal subsidiary of VNB) is a community bank with $6.2 billion in assets,
currently operating 117 branches in 76 communities in New Jersey.

      At its regularly scheduled Board meeting held September 19, 2000, the
Company terminated its previously announced stock repurchase program. This was
done in view of the pendency of the Merger. Since the inception of the program
in August 1996, a total of 1,897,346 shares had been repurchased out of the
total authorized to be repurchased of approximately 2,500,000 shares.

      3. Accumulated Other Comprehensive Loss - Statement of Financial
Accounting Standards ("SFAS") No. 130, "Reporting Comprehensive Income,"
establishes standards for the reporting and display of comprehensive income and
its components in financial statements. Comprehensive income represents net
income and certain amounts reported directly in equity, such as the net
unrealized depreciation on available-for-sale securities. Accumulated Other
Comprehensive Loss is shown on the Balance Sheet net of tax. Below are gross
amounts and the tax benefit applicable as of September 30, 2000 and December 31,
1999.

                                                    09/30/00       12/31/99
                                                    --------       --------
                                                         (In thousands)

           Unrealized depreciation                  $ (5,594)     $(12,783)
           Tax benefit                                 1,958         5,650
                                                    --------      --------
           Net of tax amount                        $ (3,636)     $ (7,133)
                                                    ========      ========


                                       6
<PAGE>

                           Merchants New York Bancorp

Notes to Consolidated Financial Statements

      4. The Company's Board of Directors declared a 2 for 1 stock split on
August 17, 1999, to shareholders of record as of September 21, 1999, with an
effective date of October 1, 1999. As a result, adjustments have been made to
the capital accounts at the effective date, while retroactive adjustments have
been made to the number of shares used for the earnings per share calculation.

      5. In June 2000, the Financial Accounting Standards Board ("FASB"), issued
SFAS No. 138, "Accounting for Derivative Instruments and Hedging Activities"
which amended SFAS No. 133. SFAS No. 138 establishes accounting and reporting
standards for derivatives and hedging activities. It requires that all
derivatives be included as assets or liabilities in the balance sheet and that
such instruments be carried at fair market value through adjustments to either
other comprehensive income or current earnings or both, as appropriate. In June
1999, FASB issued SFAS No. 137 which deferred the effective date of SFAS No. 133
to fiscal years beginning after June 15, 2000. Management does not anticipate
that the adoption of this standard will have a material impact on the Company's
consolidated financial statements.

      6. SFAS No. 140, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishment of Liabilities" (Statement 140), was issued on
September 29, 2000. This new Statement replaces Statement SFAS No. 125
(Statement 125) issued in June 1996. Statement 140 addresses implementation
issues that were identified in applying Statement 125. Statement 140 is
effective for transfers of financial assets (including securitization) occurring
after March 31, 2001. However, the provisions of the Statement related to the
recognition and reclassification of collateral in financial statements and
disclosures related to securitization transactions and collateral are effective
for fiscal years ending after December 15, 2000. The Company does not expect the
adoption of Statement 140 to have a material effect upon its financial
statements.


                                       7
<PAGE>

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

Comparison for the three months ended September 30, 2000 and September 30, 1999

Interest income on investments for the quarter ended September 30, 2000 was
$14.6 million, an increase of $831,000 when compared to $13.7 million for the
same period in 1999. The increase was the result of $312,000 from higher volume
and $519,000 from an increase in interest rates. The average balance for the
investment portfolio increased to $817 million, up $18 million, from $799
million for the same period in 1999.

Interest income on loans was $12.6 million, an increase of $3.3 million when
compared to $9.3 million for the same period in 1999. $2 million was from higher
volume and $1.3 million from higher interest rates as the prime rate averaged
9.50% versus an average of 8.10% for the same period in 1999. The average loan
balance for the quarter increased to $509.9 million, up $84.6 million from
$425.3 million in 1999, primarily due to Merchants New York Commercial Corp.,
the Bank's asset-based lending subsidiary.

Non interest income increased $156,000 to $1.9 million in 2000, when compared to
$1.7 million in 1999. The increase was primarily the result of increases in fee
income and other service charges of $143,000 combined with an increase in
International Department fees of $13,000.

Interest expense on interest bearing deposits increased $1.4 million to $7.8
million from $6.4 million for the same period in 1999. The increase was a result
of $322,000 from higher volume and $1.1 million from an increase in interest
rates. Average interest bearing deposits for the quarter increased to $658.4
million, up $35.5 million when compared to $622.9 million for the same period
last year.

Interest expense on repurchase agreements for the three months ended September
30, 2000 was $3.9 million, an increase of $1.5 million, when compared to $2.4
million for the same period last year. The increase was the result of $842,000
from higher volume and $690,000 from an increase in interest rates. The average
balance for repurchase agreements increased $56.1 million to $239.3 million, up
from $183.2 million for the same period in 1999.

Interest expense on FHLB term advances increased to $1.2 million, up $290,000
from $920,000 for the same period in 1999. The increase resulted primarily from
higher interest rates. The average balance for the quarter increased slightly to
$70 million when compared to last year's average of $68.4 million.

Other short-term borrowing consist of Federal funds purchased and US Treasury
demand notes. Interest expense from other short- term borrowing remained
relatively the same for the three months ended September 30, 2000 and September
30,1999. Interest expense for the three month period was $246,000 versus
$304,000 for the same period last year. $113,000 decrease was from lower volume
offset by an increase of $55,000 from higher interest rates.

Non interest expense decreased to $6.0 million, down $226,000 from $6.2 million
for the same period in 1999. This was primarily the result of decreases in other
operating expenses.


                                       8
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

Income tax expense for the three months ended September 30, 2000 increased
$370,000 to $2.8 million versus $2.5 million for the same period in 1999. The
increase was primarily due to an increase in income before taxes of $1.3
million.

PROVISION FOR LOAN LOSSES

An addition of $850,000 was made to the Provision for Loan Losses for the third
quarter in 2000, versus $615,000 in 1999. The Bank's level of reserve follows
industry standards, with the provision adjusted to reflect the status of the
loan portfolio risk. The level of allowance for loan losses is evaluated by
management quarterly and is based on several factors in addition to non-accrual
loans, doubtful and substandard loans including: charged-off loans, recoveries,
changes in levels and characteristics of outstanding loans, and loans classified
by management as higher than normal credit risk.

The following table sets forth certain information with respect to the loan loss
experience for the quarter ended September 30, 2000 and 1999.

                                                      9/30/00        9/30/99
                                                      -------        -------
                                                            (In thousands)

Balance at beginning of period ...............        $10,282         $8,556
Provision for loan losses ....................            850            615
Charge offs ..................................           (866)          (688)
Recoveries:
         Commercial ..........................             33             40
         Installment .........................              1              1
                                                      -------         ------
Total ........................................        $10,300         $8,524
                                                      =======         ======


                                       9
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

Comparison for the nine months ended September 30, 2000 and September 30, 1999

Interest income on investments for the nine months ended September 30, 2000 was
$44.5 million, an increase of $3.5 million when compared to $41 million for the
same period in 1999. The increase was the result of $1 million from higher
volume and $2.5 million from an increase in interest rates. The average balance
for the investment portfolio increased to $835.4 million, up $19.9 million, from
$815.5 million for the same period in 1999.

Interest income on loans was $33.8 million, an increase of $9.4 million when
compared to $24.4 million for the same period in 1999. $5.9 million was from
higher volume and $3.5 million from higher interest rates as the prime rate
averaged 9.15% versus an average of 7.87% for the same period in 1999. The
average loan balance for the period increased to $467.2 million, up $85.5
million from $381.7 million in 1999, primarily due to Merchants New York
Commercial Corp., the Bank's asset-based lending subsidiary.

Non interest income for the nine months ended September 30, 2000 increased
$724,000 to $5.5 million when compared to $4.8 million for the same period in
1999. The increase was primarily the result of increases in fee income and other
service charges of $624,000. In addition, International Department fees
increased $176,000 from higher volume of processing letters of credits.

Interest expense on interest bearing deposits increased $2.4 million to $21.7
million from $19.3 million for the same period in 1999. The increase was a
result of $158,000 from higher volume and $2.2 million from an increase in
interest rates. Average interest bearing deposits for the period increased $15.5
million to $646.6 million when compared to an average of $631.1 million in 1999.

Interest expense on repurchase agreements for the nine months ended September
30, 2000 was $10.1 million, an increase of $3.6 million, when compared to $6.5
million for the same period last year. The increase was the result of $2 million
from higher volume and $1.6 million from an increase in interest rates. The
average balance for repurchase agreements increased $45.2 million to $213.3
million, up from $168.1 million for the same period in 1999.

Interest expense on FHLB term advances increased to $3.7 million, $1.6 million
higher than the $2.1 million for the same period in 1999. The increase was the
result of $1.1 million from a higher volume and $488,000 from higher interest
rates. The average balance for the period ending September 30, 2000 increased to
$76.6 million, an increase of $23.7 million, when compared to last year's
average of $52.9 million.


                                       10
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

Other short-term borrowing consist of Federal funds purchased and US Treasury
demand notes. Interest expense from other short-term borrowing was $751,000 for
the nine months period ended September 30, 2000, an increase of $249,000 when
compared to $502,000 for the same period last year. The increase was the result
of $116,000 from higher volume and $133,000 from higher interest rates.

Non interest expense increased to $19.6 million, up $558,000 from $19.1 million
for the same period in 1999. This was primarily the result of increases in
salaries and employee benefits.

Income tax expense for the nine months ended September 30, 2000 increased $1.6
million to $8.8 million versus $7.2 million for the same period in 1999. The
increase was primarily due to an increase in income before taxes of $4.4
million.

PROVISION FOR LOAN LOSSES

$2,475,000 and $1,215,000 were added to the Provision for Loan Losses for the
nine months ended September 30, 2000 and 1999, respectively. The increase this
year, was primarily the result of $86 million average loan growth.

The following table sets forth certain information with respect to the loan loss
experience for the periods ending September 30, 2000 and 1999.

                                                       9/30/00        9/30/99
                                                      --------        -------
                                                            (In thousands)

Balance at beginning of period ...............        $ 9,108         $7,965
Provision for loan losses ....................          2,475          1,215
Charge offs ..................................         (1,408)          (866)
Recoveries:
         Commercial ..........................            124            204
         Installment .........................              1              6
                                                      -------         ------
Total ........................................        $10,300         $8,524
                                                      =======         ======

PAST DUE LOANS AND NON PERFORMING ASSETS

Loans are generally placed on non-accrual status when principal or interest
becomes 90 days or more delinquent. Loans past due 90 days or more which are
still accruing, are either secured or are in the process of collection. Loans
remain on non-accrual status until principal and interest payments are current
or charged off.


                                       11
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

The following table sets forth the aggregate amount of non-accrual and past due
loans which are 90 days or more past due as to principal or interest payments on
the date indicated.

                                                          9/30/00      12/31/99
                                                          -------      --------
                                                          (Dollars in thousands)

Non - accrual loans ....................................   $5,959       $ 428
Loans past due 90 days or more,
  and still accruing ...................................    1,520         496
                                                           ------       -----
  Total .........................................          $7,479       $ 924
                                                           ======       =====

Restructured loans included in non - accrual loans .....   $  239       $ 292
Non - accrual loans as a % of reserve ..................    57.85%       4.70%
Non - accrual loans as a % of total average loans ......     1.28%        .11%
Interest income that would have been earned on
  non-accrual loans ...................................    $  187       $  57


                                       12
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

LIQUIDITY

Liquidity measures the Bank's ability to satisfy current and future obligations
and commitments as they become due. Maintaining an adequate liquidity level
through proper asset/liability management insures that these needs will be met
at a reasonable cost. Funds to meet liquidity needs are raised through the
liquidation or maturity of an asset or through increased deposits or borrowing.

The Bank's liquidity continues to be strong, with average cash and short-term
investments totaling $60 million at September 30, 2000 compared with $55 million
at December 31, 1999, accounting for 4.3% and 4.2% of the Bank's total average
assets, respectively. Management considers overall liquidity at September 30,
2000 to be adequate to meet current obligations, to support expectations for
future changes in asset and liability levels and to carry on normal operations.

Scheduled loan payments and payments of principal and interest from the
investment portfolio provided additional liquidity. Through principal repayments
and redemptions, the investment portfolio generated $152 million for the nine
months of 2000, and a total of $214 million for the year ended December 31, 1999
for reinvestment and/or liquidity.

On the liability side, the primary source of funds available to meet liquidity
needs is the Bank's core deposit base. The average balance of total deposits was
$944 million for the nine months ended September 30, 2000, compared to $913
million for the year ended December 31, 1999. The Bank continues to retain a
substantial portion of its average deposits in the form of noninterest-bearing
funds, which were 31.5% at September 30, 2000 and 30% at December 31, 1999, or
$297 million and $278 million, respectively.

CAPITAL

The primary source of capital growth is through retention of earnings. Undivided
profits increased to $104.5 million as of September 30, 2000 as compared to $95
million as of December 31, 1999. On August 15, 2000, the Company's Board of
Directors declared its 269th consecutive quarterly dividend in the amount of
$.125 per share of common stock payable to its shareholders, for the third
quarter of 2000.

The capital base of a bank is a significant measure of the strength of a
financial institution. The Bank has seen a steady capital growth over the past
several years, with the risk based ratios and leverage ratio, as shown below, in
excess of the required "Well Capitalized" level of 10% and 5%, respectively.

                                        Required       9/30/00        12/31/99
                                        --------------------------------------
     Tier I Capital Ratio .........       4.00%         13.76%         14.88%
     Total Capital Ratio ..........       8.00          15.01          16.13
     Leverage Ratio ...............       3.00           7.55           7.54


                                       13
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

There was an overall increase of $5.1 million in capital from December 31, 1999
to September 30, 2000. Of this change, there was an increase in undivided
profits of $9.5 million, an increase in the change in market value of available
for sale securities (net of tax effect) of $3.5 million and net increase of $7.9
million in Treasury stock transactions.

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, which are based on
management's current expectations regarding economic, legislative and regulatory
issues that may impact the Company's earnings in future periods. Factors that
could cause future results to vary from current management's expectations
include, but are not limited to general economic conditions: changes in interest
rate, deposit flows, loan demand, real estate values and competition; changes in
accounting principles, policies or guidelines; changes in legislation and
regulation; and other economic, competitive, governmental, regulatory and
technological factors affecting the Company's operations, pricing, products and
services.


                                       14
<PAGE>

Item 3, Quantitative and Qualitative Disclosures About Market Risk

MARKET RISK MANAGEMENT

Market risk is the risk of loss in a financial instrument arising from adverse
changes in market rates/ prices such as interest rates, foreign currency
exchange rates, commodity prices and equity prices. The Bank's primary market
risk exposure is interest rate risk, with foreign exchange, commodity and equity
price risk not arising in the ordinary course of business. The ongoing
monitoring and management of this risk is an important component of the Bank's
asset/liability process which is governed by policies, established by its Board
of Directors, that are reviewed and approved annually. The Board of Directors
delegates responsibility for carrying out the asset/liability management
policies to the Asset/Liability Committee (ALCO). In this capacity, ALCO
develops guidelines and strategies impacting the Bank's asset/liability
management related activity based upon estimated market risk sensitivity, policy
limit and overall market interest rate levels/trends.

The objectives of the Bank's interest rate risk management activities are to
define an acceptable level of risk based on the Bank's business focus, capital
and liquidity requirements and to manage interest rate risk and maintain net
interest margins in a changing rate environment. The Bank does not currently
engage in trading activities or use of off balance sheet derivative instruments
to control interest rate risk. The Board of Directors have authorized management
to use derivatives if management deems it beneficial to the Bank.

Even with the Bank's active role in managing interest rate risk, the potential
for changing interest rates is an uncertainty that could have an adverse effect
on the earnings of the Bank. When interest-bearing liabilities mature or reprice
more quickly than interest-earning assets in a given period, a significant
increase in market interest rates could adversely affect net interest income.
Conversely, in a falling interest rate environment, these same interest-bearing
liabilities reprice more quickly than earning assets, producing a beneficial
effect on our net interest income.

In addition, management seeks to reduce the vulnerability of the Bank's
operating results to changes in interest rates and to manage the ratio of
interest rate sensitive assets to interest sensitive liabilities within
specified maturities or repricing periods, as set forth in the following
interest rate sensitivity gap analysis.


                                       15
<PAGE>

Quantitative and Qualitative Disclosure About Market Risk

INTEREST RATE SENSITIVITY GAP ANALYSIS
As of September 30, 2000
(Dollars in thousands)
<TABLE>
<CAPTION>
                                                   Less Than          3 to 12            1 to 5          Over
                                                   3 Months            Months            Years          5 Years            Total
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>               <C>               <C>              <C>              <C>
Interest Earning Assets
------------------------------------------------------------------------------------------------------------------------------------
Securities available for sale* ...............    $   27,403        $   82,015        $  265,210       $  198,459       $  573,087

Securities held to maturity* .................         9,504            28,029           123,350           81,404          242,287

Loans ........................................       519,434             4,995            17,885            5,205          547,519

Other ........................................         9,545                --                --               --            9,545

------------------------------------------------------------------------------------------------------------------------------------

Total interest earning assets ................       565,886           115,039           406,445          285,068        1,372,438

====================================================================================================================================

Interest Bearing Liabilities

------------------------------------------------------------------------------------------------------------------------------------

Interest bearing deposits ....................       562,069           102,299            15,532               --          679,900

Securities sold under
     repurchase agreements ...................       125,000           125,000            10,000               --          260,000

FHLB term advances ...........................        50,000            20,000                --               --           70,000

Other short-term borrowings ..................        14,853                --                --               --           14,853

------------------------------------------------------------------------------------------------------------------------------------

Total interest bearing liabilities ...........       751,922           247,299            25,532               --        1,024,753

====================================================================================================================================

Net interest rate sensitivity gap ............      (186,036)         (132,260)          380,913          285,068          347,685

Cumulative gap position ......................      (186,036)         (318,296)           62,617          347,685

Cumulative gap/total earning assets:

At September 30, 2000 ........................        (13.56)%          (23.19)%            4.56%           25.33%

At September 30, 1999 ........................        (21.87)%          (24.00)%            6.35%           25.10%
</TABLE>

* Adjusted for weighted average maturity dates and prepayments for
  mortgage-backed securities. All securities are disclosed at book value.

In managing the Bank's asset/liability position, management attempts to minimize
interest rate risk while enhancing net interest margins. Management continues to
believe that the increased net interest income resulting from a mismatch in
maturity of the Bank's assets and liability portfolio can, during periods of
declining or stable interest rates and periods in which there is a substantial
positive difference between long-


                                       16
<PAGE>

Quantitative and Qualitative Disclosure About Market Risk

and short-term interest rates, provide high enough returns to justify the
increased exposure to sudden and unexpected increases in interest rates.
Consequently, the Bank's results of operations and net portfolio values remain
vulnerable to increases in interest rates and to fluctuations in the difference
between long- and short-term interest rates.

Consistent with its asset/liability management philosophy, the Bank has taken
several steps to manage its interest rate risk. First, the Bank's loan
portfolio, as of September 30, 2000, totaled $547.5 million, consisting of
virtually all adjustable rate loans. Second, a majority of the Bank's securities
are U.S. Government and agency mortgaged-backed securities, with an ending book
value of $815 million, and an expected weighted average maturity of
approximately four years or less. Third, the Bank has a significant amount of
deposits which are non-interest bearing or are only minimally sensitive to
interest rate fluctuations, including $297 million in average demand deposits
and $284.7 million in average money market, NOW and savings accounts.


                                       17
<PAGE>

Part II - Other Information

Item 6, Exhibits and Reports on Form 8 - K

(a)   Exhibits:

      Exhibit 11 - Computation of Earnings Per Share

      Exhibit 27 - Financial Data Schedule

(b)   Reports on Form 8-K:

      1. On September 19, 2000, the Company filed the following reports on Form
      8-K Current Report (pursuant to Items 5 and 7), which reported the
      Company's merger with Valley National Bancorp, followed immediately by the
      merger of The Merchants Bank of New York with Valley National Bank:

      a.    An Agreement and Plan of Merger dated September 5, 2000.

      b.    Stock Option Agreement between the Company and Valley National
            Bancorp.

      c.    Press release dated September 6, 2000, announcing the merger.

      d.    Investor presentation materials regarding the merger.

      e.    Letter to Stockholders of the Company dated September 8, 2000,
            announcing the merger.

      f.    Press release dated September 19, 2000, announcing the termination
            of the Company's stock repurchase program.

      2. On October 30, 2000, the Company filed the following reports on Form
      8-K Current Report (pursuant to Item 5 and 7), which reported the
      Company's earnings for the quarter and for the nine months ended September
      30, 2000.

      3. On November 1, 2000, the Company published its quarterly report to
      stockholders, reporting the results of its operations for the three and
      nine months ended September 30, 2000.


                                       18
<PAGE>

                                   SIGNATURES
                                   ----------

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

                                         MERCHANTS NEW YORK BANCORP, INC.
                                         Registrant

Date: November 3, 2000
                                         ---------------------------------------
                                         James G. Lawrence
                                         President & Chief Executive Officer

Date: November 3, 2000
                                         ---------------------------------------
                                         William J. Cardew
                                         Vice Chairman & Chief Operating Officer


                                       19
<PAGE>

Exhibit 11 - Computation of Earnings Per Share

Earnings Per Share (EPS), presented below is the calculation of basic and
diluted EPS for the Company for the nine months ended September 30, 2000 and
1999.

                                                              2000         1999*
                                                       -----------   -----------

Income before minority interest                        $17,397,352   $14,679,257
Less: minority interest                                      5,568         5,568
                                                       -----------   -----------
Net income                                             $17,391,784   $14,673,689

Weighted average shares outstanding                     18,740,627    19,310,356
Plus: effect of stock options as dilutive securities        60,037        93,592
                                                       -----------   -----------
Adjusted weighted average shares assuming dilution      18,800,664    19,403,948

EPS - Basic                                            $      0.93   $       .76
EPS - Diluted                                          $      0.93   $       .76

* Adjusted for the 2-1 stock split, effective October 1999.


                                       20