SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C. 20549

                                      FORM 10-Q

(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, 1997
                               ------------------------------------------------

                                  OR

  X     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             0-18764
                                              ------------------------


                               PULSE BANCORP, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


       NEW JERSEY                                               22-3016360
--------------------------------------------------------------------------------
(State or other  jurisdiction of incorporation                 (IRS Employer
or  organization)                                           Idenitification No.)



6 JACKSON ST., SOUTH RIVER, N.J.                                08882
-------------------------------------------------------------------------------
(Address of principal executive offices)                      (Zip Code)



Registrant's telephone number, including area code          908-257-2400
                                                  ------------------------------


                                       N/A
--------------------------------------------------------------------------------
               Former name, former address and former fiscal year,
                          if changed since last report


Indicate by check whether the registrant  (1) has filed all reports  required to
be  filed  by  Section  13 or 15(d) of the  Securities  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
                             --------------                       --------------

The  number of shares  outstanding  of each of the  issuer's  classes  of common
stock, as of the latest practicable date       May 2, 1997
                                           -------------------

                      CLASS                         OUTSTANDING
                      -----                         -----------
           $1.00 par value common stock          3,067,048 Shares



<PAGE>



                         PULSE BANCORP, INC. AND SUBSIDIARIES



                                        Index
<TABLE>
<CAPTION>


                                                                             Page Number

PART I - CONSOLIDATED  FINANCIAL INFORMATION

<S>                                                                             <C>
          Consolidated Statements of Financial Condition at September 30,
          1996 and March 31, 1997 (unaudited)                                      1

          Consolidated Statements of Income for the Three and Six Months
          Ended March 31, 1996  and 1997 (unaudited)                               2

          Consolidated Statements of Cash Flows for the Six Months Ended
          March 31, 1996 and 1997 (unaudited)                                      3

          Notes to Consolidated Financial Statements                             4-6

          Managements Discussion and Analysis of Financial Condition and
          Results of Operations                                                 7-11


PART II - OTHER INFORMATION                                                       12

          SIGNATURES                                                              13

</TABLE>

<PAGE>

                      PULSE BANCORP, INC. AND SUBSIDIARIES
                 Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
                                                                                            September 30,      March 31,
                                                                                                1996             1997
ASSETS                                                                                                        (Unaudited)
------                                                                                     -------------------------------
<S>                                                                                        <C>              <C>          
Cash and amounts due from depository institutions ......................................   $   4,249,883    $   4,069,233
Federal funds sold .....................................................................         500,000        4,900,000
                                                                                           -------------------------------
    Total cash and cash equivalents ....................................................       4,749,883        8,969,233

Investment securities held to maturity; estimated fair value of
  $103,192,000 and $105,814,000, respectively ..........................................     105,549,457      108,549,373
Mortgage backed securities held to maturity, net; estimated fair
  value of $162,617,000 and $176,348,000, respectively .................................     164,091,984      178,077,203
Investment securities available for sale ...............................................      39,054,697       39,087,890
Mortgage-backed securities available for sale ..........................................      40,255,064       42,290,819
Loans receivable, net ..................................................................     134,547,804      126,339,199
Premises & equipment, net ..............................................................       1,235,135        1,219,826
Real estate owned, net .................................................................       2,232,624          195,300
Federal Home Loan Bank of New York stock, at cost ......................................       2,543,100        2,775,500
Interest receivable ....................................................................       4,527,354        4,737,889
Other assets ...........................................................................       3,712,747        3,694,117
                                                                                           -------------------------------
     Total assets.......................................................................    $502,499,849    $ 515,936,349
                                                                                           ===============================

LIABILITIES AND
---------------
   STOCKHOLDERS' EQUITY
   --------------------
Liabilities:
Deposits................................................................................    $394,580,611    $ 409,706,387
Borrowings .............................................................................      64,275,000       62,550,000
Advance payments by borrowers for taxes & insurance ....................................         628,243          645,895
Other liabilities ......................................................................       4,557,461        2,805,202
                                                                                           -------------------------------
     Total liabilities .................................................................     464,041,315      475,707,484
                                                                                           -------------------------------

Stockholders' Equity:
Preferred stock; authorized 5,000,000 shares; issued and
   outstanding - none ..................................................................              --               --
Common stock; par value $1.00; authorized 10,000,000 shares;
   4,111,958 shares issued and 3,049,878 outstanding and
   4,123,128 shares issued and 3,061,048 outstanding,
   respectively ........................................................................       4,111,958        4,123,128
Paid in capital in excess of par value .................................................      12,105,541       12,182,581
Retained earnings- substantially restricted ............................................      39,147,609       40,840,945
Unrealized loss on securities available for sale, net of tax ...........................        (229,074)        (240,289)
Treasury Stock; at cost; 1,062,080 common shares, respectively .........................     (16,677,500)     (16,677,500)
                                                                                           -------------------------------
     Total stockholders' equity ........................................................      38,458,534       40,228,865
                                                                                           -------------------------------
     Total liabilities and stockholders' equity.........................................    $502,499,849    $ 515,936,349
                                                                                           ===============================
</TABLE>

See accompanying notes to consolidated financial statements.

                                        1

<PAGE>
                      PULSE BANCORP, INC. AND SUBSIDIARIES
                        Consolidated Statements of Income
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                   Three Months Ended        Six Months Ended
                                                                --------------------------------------------------
                                                                         March 31,                 March 31,
                                                                --------------------------------------------------
                                                                    1996         1997        1996         1997
                                                                --------------------------------------------------
Interest income:
<S>                                                             <C>          <C>          <C>          <C>       
   Loans .....................................................  $3,007,228   $2,788,005   $6,024,176   $5,707,892
   Mortgage-backed securities.................................   2,962,497    3,586,640    5,797,071    6,940,531
   Investments and other interest-earning assets..............   1,887,293    2,640,485    3,880,289    5,209,609
                                                                ----------   ----------   ----------   ----------
      Total interest income...................................   7,857,018    9,015,130   15,701,536   17,858,032
                                                                ----------   ----------   ----------   ----------

Interest expense:
   Deposits...................................................   4,451,551    4,576,517    8,974,080    9,101,957
                                                                ----------   ----------   ----------   ----------
   Borrowings.................................................           -      929,246           -     1,890,889
      Total interest expense..................................   4,451,551    5,505,763    8,974,080   10,992,846
                                                                ----------   ----------   ----------   ----------

Net interest income...........................................   3,405,467    3,509,367    6,727,456    6,865,186
                                                                ----------   ----------   ----------   ----------
Net interest income after provision for loan losses...........   3,405,467    3,509,367    6,727,456    6,865,186
                                                                ----------   ----------   ----------   ----------

Non-interest income:
   Other fees and service charges on loans....................      59,097       62,524      116,173      143,256
   Income (expense) from real estate operations...............       8,404      (13,255)       3,300       77,311
   Miscellaneous..............................................      15,204       13,344       51,914       43,033
                                                                ----------   ----------   ----------   ----------
      Total non-interest income...............................      82,705       62,613      171,387      263,600
                                                                ----------   ----------   ----------   ----------

Non-interest expenses:
   Salaries and employee benefits.............................     590,215      671,098    1,185,233    1,324,797
   Occupancy expense..........................................      82,419       74,915      153,385      151,662
   Equipment expense..........................................     145,045      150,230      276,438      281,423
   Advertising................................................      72,624       99,357      132,981      194,064
   Federal deposit insurance premium..........................     222,655       63,312      449,007      240,156
   Miscellaneous..............................................     275,033      284,560      526,501      607,533
                                                                ----------   ----------   ----------   ----------
      Total non-interest expenses.............................   1,387,991    1,343,472    2,723,545    2,799,635
                                                                ----------   ----------   ----------   ----------

Income before income taxes....................................   2,100,181    2,228,508    4,175,298    4,329,151
Income taxes..................................................     755,000      798,000    1,506,634    1,566,372
                                                                ----------   ----------   ----------   ----------
      Net income..............................................  $1,345,181   $1,430,508   $2,668,664   $2,762,779
                                                                ==================================================

Net income per common share and common stock equivalents......  $     0.34   $     0.45   $     0.67   $     0.88
                                                                ==================================================

Dividends per common share....................................  $    0.175   $    0.175   $     0.35   $     0.35
                                                                ==================================================

Weighted average number of common shares and common
   stock equivalents outstanding..............................   3,955,549    3,148,444    3,954,565    3,136,650
                                                                ==================================================
</TABLE>

See accompanying notes to consolidated financial statements.

                                        2

<PAGE>
                      PULSE BANCORP, INC. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                 (Unaudited)
<TABLE>
<CAPTION>
                                                                                             Six Months Ended 
                                                                                                  March 31,
                                                                                  -----------------------------------------
                                                                                       1996                        1997
                                                                                  -----------------------------------------
Cash flows from operating activities:                             
<S>                                                                               <C>                         <C>         
  Net income ..................................................................   $  2,668,664                $  2,762,779
  Adjustments to reconcile net income to net cash provided by
     operating activities:
    Depreciation of premises and equipment ....................................         68,710                      74,622
    Provision for losses on real estate owned .................................         76,000                      32,850
    Amortization of premiums, discounts and fees, net .........................       (119,342)                    (77,046)
    Gain on sale of real estate owned .........................................        (62,462)                   (119,141)
    Decrease (increase) in interest receivable ................................        536,982                    (210,535)
    (Increase) decrease in other assets .......................................       (162,097)                     18,630
    (Decrease) increase in other liabilities ..................................       (165,676)                  1,752,259
                                                                                  -----------------------------------------
      Net cash provided by operating activities ...............................      2,840,779                   4,234,418
                                                                                  -----------------------------------------

Cash flows from investing activities:
    Proceeds from maturities and calls of investment securities held to maurity     53,000,000                   7,002,500
    Purchase of investment securities held to maturity ........................    (48,979,670)                (10,000,000)
    Purchase of mortgage-backed securities held to maturity ...................    (25,507,350)                (23,838,620)
    Purchase of mortgage-backed securities available for sale .................             --                  (4,940,719)
    Principal repayments on mortgage-backed securities held to maturity .......     10,669,731                   9,839,918
    Principal repayments on mortgage-backed securities available for sale .....      1,686,777                   2,626,241
    Net decrease in loans receivable ..........................................      2,429,079                   4,818,014
    Additions to premises and equipment .......................................        (65,996)                    (59,313)
    Proceeds from sale of real estate owned ...................................        868,762                   2,332,115
    Purchase of Federal Home Loan Bank of New York Stock ......................         (2,900)                   (232,400)
                                                                                  -----------------------------------------
      Net cash used in investing activities ...................................     (5,901,567)                (12,452,264)
                                                                                  -----------------------------------------

Cash flows from financing activities:
    Net increase in deposits ..................................................      5,206,486                  15,125,776
    Net decrease in borrowings ................................................             --                  (1,725,000)
    Decrease in advance payments by borrowers
      for taxes and insurance .................................................        132,138                      17,652
    Issuance of common stock ..................................................        313,402                      88,210
    Cash dividends paid .......................................................     (1,356,125)                 (1,069,442)
                                                                                  -----------------------------------------
      Net cash provided by financing activities ...............................      4,295,901                  12,437,196
                                                                                  -----------------------------------------

Net increase in cash and cash equivalents .....................................      1,235,113                   4,219,350
Cash and cash equivalents - beginning .........................................      8,761,510                   4,749,883
                                                                                  -----------------------------------------
Cash and cash equivalents - ending ............................................   $  9,996,623                $  8,969,233
                                                                                  =========================================

Supplemental schedule of non-cash investing activities:
      Transfer of loans receivable to real estate owned .......................   $    628,000                $    208,500
                                                                                  =========================================
      Transfer of mortgage-backed securities and investments held to
        maturity to available for sale ........................................   $ 58,764,618                          --
                                                                                  =========================================
Cash paid during the period for:
      Income taxes ............................................................   $  1,255,000                $    300,000
                                                                                  =========================================
      Interest ................................................................   $  8,987,738                $ 10,987,659
                                                                                  =========================================
</TABLE>

See accompanying notes to consolidated financial statements
                                        3
<PAGE>



                      PULSE BANCORP, INC. AND SUBSIDIARIES
                   Notes To Consolidated Financial Statements

1. PRINCIPLES OF CONSOLIDATION
------------------------------
The  consolidated  financial  statements  include the accounts of Pulse Bancorp,
Inc. (the "Corporation") and its wholly owned subsidiaries,  Pulse Savings Bank,
Pulse Insurance  Services,  Pulse Real Estate,  and Pulse  Investment,  Inc. The
Corporation'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-Q  and,  therefore,  do not  include
information or footnotes  necessary for a complete  presentation of consolidated
financial  condition,  results of operations,  and cash flows in conformity with
generally accepted accounting principles.  However, all adjustments,  consisting
only of normal recurring adjustments,  which, in the opinion of management,  are
necessary for fair presentation of the consolidated  financial statements,  have
been included. The results of operations for the six months ended March 31, 1997
are not  necessarily  indicative  of the results  which may be expected  for the
entire fiscal year.

3. LOANS RECEIVABLE, NET
------------------------
<TABLE>
<CAPTION>
                                                                                         September 30,     March 31,
                                                                                              1996           1997
                                                                                          ---------------------------
Real Estate Mortgage:
<S>                                                                                       <C>            <C>         
   One-to-four family .................................................................   $ 65,509,636   $ 66,627,928
   Multi family .......................................................................     28,190,149     20,099,633
   Commercial .........................................................................     29,882,549     28,671,137
                                                                                          ---------------------------
                                                                                           123,582,334    115,398,698
                                                                                          ---------------------------

Construction Loans ....................................................................        125,000        195,000

Consumer:
   Home equity ........................................................................     13,543,650     13,281,936
   Passbook or certificate ............................................................        184,185        229,679
                                                                                          ---------------------------
                                                                                            13,727,835     13,511,615
                                                                                          ---------------------------
        Total loans ...................................................................    137,435,169    129,105,313
                                                                                          ---------------------------

Less: Allowance for loan losses .......................................................      2,458,777      2,357,396
         Deferred loan fees and discounts .............................................        428,588        408,718
                                                                                          ----------------------------
                                                                                             2,887,365      2,766,114
                                                                                          ----------------------------
                                                                                          $134,547,804   $126,339,199
                                                                                          ============================
</TABLE>

<TABLE>
<CAPTION>

An analysis of the allowance for loan losses is as follows:        Six Months Ended
                                                                       March 31,
                                                                -----------------------
                                                                  1996         1997
                                                                  ----         ----
<S>                                                             <C>          <C>       
           Balance-beginning..................................  $2,603,852   $2,458,777
           Provisions charged to operations...................           -            -
           Losses charged to allowance........................     (85,152)    (101,381)
           Balance-ending.....................................  $2,518,700   $2,357,396
</TABLE>

                                        4
<PAGE>



                      PULSE BANCORP, INC. AND SUBSIDIARIES
                   Notes To Consolidated Financial Statements



4. INVESTMENT SECURITIES
------------------------
<TABLE>
<CAPTION>

                                                         September 30, 1996
                                     -------------------------------------------------------------
                                                       Gross              Gross       Estimated
                                       Carrying     Unrealized         Unrealized        Fair
Held To Maturity                         Value         Gains             Losses          Value
                                     -------------------------------------------------------------
<S>                                  <C>            <C>               <C>            <C>         
U.S. Government (including agencies) $104,949,486   $    104,420      $2,483,349     $102,570,557
Obligations of state and political
    subdivisions                          599,971         21,789              --          621,760
                                     -------------------------------------------------------------
                                     $105,549,457   $    126,209      $2,483,349     $103,192,317
                                     =============================================================

Available For Sale
U.S. Government Agency Debentures    $ 39,813,748   $     12,500      $  771,551     $ 39,054,697
                                     -------------------------------------------------------------
                                     $ 39,813,748   $     12,500      $  771,551     $ 39,054,697
                                     =============================================================
</TABLE>

<TABLE>
<CAPTION>

                                                              March 31, 1997
                                          ---------------------------------------------------------
                                                            Gross         Gross        Estimated
                                            Carrying      Unrealized    Unrealized        Fair
Held To Maturity                              Value         Gains         Losses          Value
                                          ---------------------------------------------------------
<S>                                       <C>              <C>          <C>           <C>         
U.S. Government (including agencies)      $107,951,889     $41,996      $2,799,877    $105,194,008
Obligations of state and political             597,484      22,276                        $619,760
    subdivisions
                                          ---------------------------------------------------------
                                          $108,549,373     $64,272      $2,799,877    $105,813,768
                                          =========================================================

Available For Sale
U.S. Government Agency Debentures          $39,823,787     $43,800      $  779,697    $ 39,087,890
                                          ---------------------------------------------------------
                                           $39,823,787     $43,800      $  779,697    $ 39,087,890
                                          =========================================================
</TABLE>




                                        5
<PAGE>



                      PULSE BANCORP, INC. AND SUBSIDIARIES
                   Notes To Consolidated Financial Statements


5. MORTGAGE-BACKED SECURITIES 
-----------------------------
<TABLE>
<CAPTION>
                                                                           September 30, 1996
                                                       ----------------------------------------------------------
                                                                           Gross         Gross       Estimated
                                                          Carrying       Unrealized    Unrealized       Fair
Held To Maturity                                            Value          Gains         Losses         Value
----------------                                       ----------------------------------------------------------

<S>                                                    <C>              <C>          <C>            <C>         
Government National Mortgage Association               $ 67,075,905     $  743,542   $    194,683   $ 67,624,764
Federal Home Loan Mortgage Corporation                   39,159,809        174,932        402,384     38,932,357
Federal National Mortgage Association                    21,470,218         95,144   $    603,746     20,961,616
Collateralized mortgage obligations                      36,386,052         10,191   $  1,298,317     35,097,926
                                                       ----------------------------------------------------------
                                                       $164,091,984     $1,023,809   $  2,499,130   $162,616,663
                                                       ==========================================================
Available For Sale
GNMA ARMs                                              $ 39,848,435     $  406,629   $         --   $ 40,255,064
                                                       ----------------------------------------------------------
                                                       $ 39,848,435     $  406,629   $         --   $ 40,255,064
                                                       ==========================================================
</TABLE>

<TABLE>
<CAPTION>


                                                                             March 31, 1997
                                                      -----------------------------------------------------------
                                                                         Gross          Gross         Estimated
                                                          Carrying     Unrealized     Unrealized         Fair
Held To Maturity                                            Value         Gains          Losses          Value
                                                      -----------------------------------------------------------
<S>                                                    <C>            <C>            <C>            <C>         
Government National Mortgage Association               $ 68,759,079   $    638,162   $     30,686   $ 69,366,555
Federal Home Loan Mortgage Corporation                   40,955,202        118,645        569,719     40,504,128
Federal National Mortgage Association                    32,474,041         56,663   $    772,397     31,758,307
Collateralized mortgage obligations                      35,888,882          8,455   $  1,178,818     34,718,519
                                                       ----------------------------------------------------------
                                                       $178,077,204   $    821,925   $  2,551,620   $176,347,509
                                                       ==========================================================
Available For Sale
GNMA ARMs                                              $ 36,983,845   $    435,867   $         --   $ 37,419,712
FHLMC fixed                                               4,940,751   $         --         69,639      4,871,112
                                                       ----------------------------------------------------------
                                                       $ 41,924,596   $    435,867   $     69,639   $ 42,290,824
                                                       ==========================================================
</TABLE>


6. NET INCOME PER COMMON SHARE

Net income per common share has been  calculated  based on the weighted  average
number of shares outstanding plus the shares that would be outstanding  assuming
the exercise of dilutive stock options, all of which are considered to be common
stock  equivalents.  The number of shares that would be issued from the exercise
of stock  options has been  reduced by the number of shares that could have been
purchased  from the proceeds at the average  price of the  Corporation's  common
stock.



                                       6.

<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FINANCIAL CONDITION

The  Corporation's  assets at March  31,  1997  totaled  $515.9  million,  which
represents  an  increase  of $13.4  million or 2.67% when  compared  with $502.5
million at September 30, 1996.  Total deposits at March 31, 1997 increased $15.1
million  or 3.83% to  $409.7  million  when  compared  with  $394.6  million  at
September  30,  1996.  Investment  securities  held to maturity  increased  $3.0
million or 2.84% to $108.5  million at March 31, 1997 when  compared with $105.6
million at September  30, 1996.  Investment  securities  available for sale were
$39.1  million  at both  March  31,  1997  and  Sept.  30,  1996,  respectively.
Mortgage-backed  securities held to maturity increased by $14.0 million or 8.52%
to $178.1 million at March 31, 1997 when compared to $164.1 million at September
30,  1996.  The  increase in  mortgage-backed  securities  held to maturity  was
primarily due to the purchase of $23.8 million, which more than offset principal
repayments  of $9.8  million.  Mortgage-backed  securities  available  for  sale
increased  $2.0 million or 5.06% to $42.3  million at March 31, 1997 compared to
$40.3 million at September 30, 1996. Loans receivable  decreased $8.2 million or
6.10% to $126.3  million at March 31, 1997 when  compared  to $134.6  million at
September 30, 1996.  The decrease was a result of loan  principal  repayments of
$17.3 million and the transfer of $208,000 of loans to real estate owned,  which
more than offset loan  originations  totaling  $9.2 million.  Other  liabilities
decreased by $1.8 million or 38.5% to $2.8 million at March 31, 1997 compared to
$4.6 million at September 30, 1996. The decrease was primarily due to the FDIC's
one-time  special  insurance  assessment  of $2.6  million that the Bank paid in
November.

Other assets decreased by $19,000 or 2.67% during the six months ended March 31,
1997. Real estate owned, which consists of real estate acquired in settlement of
loans,  totaled  $195,000 and $2.2 million at March 31, 1997 and  September  30,
1996,  respectively.  The decrease  was a direct  result of sales of real estate
owned  that  generated  proceeds  of $2.3  million  and  gains on such  sales of
$119,000, which more than offset the transfer of $208,000 of loans to other real
estate owned during the period.  Stockholders'  equity amounted to $40.2 million
and $38.5 million at March 31, 1997 and September 30, 1996, respectively.


Results of operations for three months ended March 31, 1997 and 1996

Net income  increased  $85,000 or 6.34% to $1.43  million  for the three  months
ended March 31, 1997  compared to $1.35  million for the same 1996  period.  The
increase  was  attributable  to an  increase  in  interest  income  along with a
decrease in non-interest expense, which more than offset an increase in interest
expense and a decrease in non-interest  income.  Interest income on loans during
the three  months  ended  March 31,  1997  decreased  $219,000  or 7.29% to $2.8
million when compared to $3.0 million during the same 1996 period.  The decrease
during the 1997 period  resulted from a decrease in the average balance of loans
outstanding,  along with a decrease in the average yield on the loan  portfolio.
Interest on  mortgage-backed  securities  increased by $624,000 or 21.07% during
the three months ended March 31, 1997 when compared with the same 1996 period as
a result  of  increased  balances.  Interest  earned  on  investments  and other
interest-earning  assets increased $753,000 or 39.91% to $2.6 million during the
three months ended March 31, 1997 when compared to $1.9 million  during the same
1996 period.  The increase  during the 1997 period  resulted  primarily  from an
increase in the average balance of investments and other interest-earning assets
outstanding.


                                        7

<PAGE>

Interest on deposits  increased  $124,000 or 2.81% to 4.58 million for the three
months  ending  March 31, 1997  compared to $4.45  million  during the same 1996
period. Interest on borrowings was $929,000 for the three months ended March 31,
1997 compared with $-0- for the same 1996 period.  During 1997 the Bank utilized
securities sold under repurchase agreements to fund its asset growth strategy.

During the three  months ended March 31, 1997 and 1996 the Bank did not make any
provisions  for loan losses.  Although no  provisions  were made,  as management
believes the levels of reserves were  adequate,  no assurances  can be made that
future  increases to the reserve will not be  necessary.  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 loan activity.  At March 31, 1997 and
September  30, 1996,  the Bank's  non-performing  loans,  which  includes  loans
delinquent 90 days or more, totaled $1.6 million and $1.8 million, respectively.
Furthermore,  the level of loan delinquencies less than 90 days declined to $3.5
million at March 31, 1997  compared to $3.8 million at September  30, 1996.  The
allowance  for loan losses  amounted to $2.4  million or 1.86% of total loans at
March 31, 1997 and $2.5 million or 1.79% of total loans at September 30, 1996.

Non-interest  income  decreased  $20,000 or 24.29% to  $63,000  during the three
months  ended March 31, 1997 when  compared  with  $83,000  during the same 1996
period.  The decrease  during the 1997 period  resulted from decreases in income
from real  estate  operations  and  miscellaneous  income of $21,000  and 2,000,
respectively,  and was somewhat  offset by an increase in income from other fees
and service charges on loans of $3,000.

Non-interest  expenses  decreased  $45,000 or 3.21% to $1.34 million  during the
three months ended March 31, 1997 when compared  with $1.39  million  during the
same 1996 period.  During the three  months  ended March 31, 1997,  FDIC deposit
insurance,  and occupany expense decreased by $159,000 and 8,000,  respectively.
The large  decrease in FDIC  insurance  expense was a direct result of the lower
insurance premiums that took effect January 1, 1997 due to the  recapitalization
of the  SAIF  insurance  fund.  Salaries  and  employee  benefits,  advertising,
equipment,  and miscellaneous expenses increased by $81,000, 27,000, $5,000, and
9,000, respectively..

Income tax expense  totaled  $798,000 and $755,000 during the three months ended
March 31,  1997 and 1996,  respectively.  The  increase  during the 1997  period
resulted primarily from the increase in income before income taxes.


Results of operations for six months ended March 31, 1997 and 1996

Net income increased  $94,000 or 3.53% to $2.76 million for the six months ended
March 31, 1997 compared to $2.67 million for the same 1996 period.  The increase
was  attributable  to an increase in interest  income and  non-interest  income,
which more than offset increases in interest  expense and non-interest  expense.
Interest  income on loans during the six months  ended March 31, 1997  decreased
$316,000 or 5.25% to $5.7 million when compared to $6.0 million  during the same
1996 period. The decrease during the 1997 period resulted from a decrease in the
average balance of loans outstanding,  . Interest on mortgage-backed  securities
increased by $1.1  million or 19.72%  during the six months ended March 31, 1997
when  compared  with the same 1996  period as a result  of  increased  balances.
Interest earned on investments and other interest-earning  assets increased $1.3
million or 34.26% to $5.2  million  during the six months  ended  March 31, 1997
when compared to $3.9 million during the same 1996 period.

                                        8

<PAGE>

The increase during the 1997 period  resulted  primarily from an increase in the
average balance of investments and other interest-earning assets outstanding.


Interest on  deposits  increased  $128,000 or 1.42% to $9.1  million for the six
months  ending  March 31,  1997  compared to $9.0  million  during the same 1996
period.  Interest on borrowings  was $1.9 million for the six months ended March
31,  1997  compared  with $-0- for the same 1996  period.  During  1997 the Bank
utilized  securities sold under  repurchase  agreements to fund its asset growth
strategy.

During the six months  ended  March 31,  1997 and 1996 the Bank did not make any
provisions  for loan losses.  Although no  provisions  were made,  as management
believes the levels of reserves were  adequate,  no assurances  can be made that
future  increases to the reserve will not be  necessary.  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 loan activity.  At March 31, 1997 and
September  30, 1996,  the Bank's  non-performing  loans,  which  includes  loans
delinquent 90 days or more, totaled $1.6 million and $1.8 million, respectively.
Furthermore,  the level of loan delinquencies less than 90 days declined to $3.5
million at March 31, 1997  compared to $3.8 million at September  30, 1996.  The
allowance  for loan losses  amounted to $2.4  million or 1.86% of total loans at
March 31, 1997 and $2.5 million or 1.79% of total loans at September 30, 1996.

Non-interest  income  increased  $92,000  or 53.80% to  $264,000  during the six
months ended March 31, 1997 when  compared  with  $171,000  during the same 1996
period.  The increase  during the 1997 period  resulted from increases in income
from real  estate  operations  and other  fees and  service  charges on loans of
$74,000  and  27,000,  respectively,  and was  somewhat  offset by a decrease in
miscellaneous income of $9,000.

Non-interest expenses increased $76,000 or 2.79% to $2.80 million during the six
months ended March 31, 1997 when  compared  with $2.72  million  during the same
1996 period.  During the six months  ended March 31, 1997  salaries and employee
benefits,  advertising,  equipment,  and  miscellaneous  expenses  increased  by
$139,000,  $61,000,  $5,000 and $81,000,  respectively.  FDIC deposit  insurance
premium and occupancy expenses  decreased by $209,000 and $2,000,  respectively.
The large  decrease in FDIC  insurance  expense was a direct result of the lower
insurance  premiums as a result of the  recapitalization  of the SAIF  insurance
fund.

Income tax expense totaled $1.57 million and $1.51 million during the six months
ended March 31, 1997 and 1996, respectively. The increase during the 1997 period
resulted primarily from the increase in income before income taxes.


Liquidity and Capital Resources

Liquidity is a measurement  of the Bank's  ability to generate  sufficient  cash
flow,  in  order  to meet all  current  and  future  financial  obligations  and
commitments  as they arise.  The Bank adjusts its  liquidity  levels in order to
meet  funding  needs for deposit  outflows,  payment of real  estate  taxes from
escrow accounts on mortgage loans,  repayments of borrowings,  when  applicable,
and loan  funding  commitments.  The Bank also  adjusts its  liquidity  level as
appropriate to meet its asset/liability  objectives.  The Bank's primary sources
of funds are deposits, amortization and prepayments of loan and mortgage- backed
securities principal, maturities of investment securities, and funds provided by
operations and short and medium term

                                        9

<PAGE>

borrowings. While scheduled loan amortization and maturing investment securities
are a  relatively  predictable  source  of  funds,  deposit  flow  and  loan and
mortgage-backed securities prepayments are greatly influenced by market interest
rates, economic conditions and competition.  The Bank manages the pricing of its
deposits to maintain a steady deposit balance. In addition, the Bank invests its
excess funds in federal  funds and  overnight  deposits  with the FHLB-NY  which
provides liquidity to meet lending requirements. Federal funds sold at March 31,
1997 and September 30, 1996 totaled $4.9 million and $0.5 million, respectively.
The Bank's liquidity,  represented by cash and cash equivalents, is a product of
its  operating,   investing  and  financing  activities.  These  activities  are
summarized as follows:



                                           Six months ended March 31,
                                           --------------------------
                                               1996       1997
                                               ---------------
                                                (In Thousands)

Cash and cash equivalents- beginning         $  8,762    $  4,750
                                             --------------------

Operating activities:
  Net income                                    2,669       2,763
  Adjustments to reconcile net
  income to net cash provided
   by operating activities                        172       1,471

Net cash provided by operating activities       2,841       4,234
                                             --------------------

Net cash used in investing activities          (5,902)    (12,452)
Net cash  provided by financing activities      4,296      12,437
                                             --------------------
Net increase in cash and
          cash equivalents                      1,235       4,219
                                             --------------------
Cash and cash equivalents- ending            $  9,997    $  8,969
                                             ====================

Cash was generated by operating activities during the 1997 and 1996 periods. The
primary  source of cash from  operating  activities  during both periods was net
income.  The  primary  sources  and uses of  investing  activity of the Bank are
proceeds from net  maturities  and repayments and the purchase of investment and
mortgage-backed  securities,  net loan  activity and from  borrowing.  Net loans
decreased  $8.2 million during the six months ended March 31, 1997 compared to a
decrease  of $3.1  million  during the same 1995  period.  During the six months
ended March 31, 1997 and 1996,  purchases of mortgage-backed  securities held to
maturity  totaled $23.8 million and $25.5 million,  respectively,  and principal
repayments totaled $9.8 million and $10.7 million, respectively.  During the six
months ended March 31, 1997 and 1996, purchases of investment securities held to
maturity  totaled $7.0 million and $53.0 million,  respectively,  and maturities
and calls totaled $10.0 million and $49.0 million,  respectively. In addition to
funding new loan  production and the purchase of investment and  mortgage-backed
securities  through operations and financing  activities,  these activities were
also  funded by  principal  repayments  on  existing  loans and  mortgage-backed
securities and also through short and medium term borrowings.

The primary source of financing  activities during the 1997 and 1996 periods was
from an increase in deposits  outstanding  amounting  to $15.1  million and $5.2
million, respectively. During the six months

                                       10

<PAGE>



ended  March 31,  1997 and  1996,  cash  dividends  of $1.07  million  and $1.36
million, respectively, were paid on the Corporation's common stock.

Liquidity  management  is  both a  daily  and  long-term  function  of  business
management.  Excess liquidity is generally  invested in short-term  investments,
such as federal funds and interest-bearing  deposits. If the Bank requires funds
beyond its ability to generate them internally,  borrowing agreements exist with
the FHLB-NY, which provides an additional source of funds.

The Bank  anticipates  that it will have sufficient  funds available to meet its
current  commitments  to  originate  loans and to purchase  mortgage-backed  and
investment securities.  At March 31, 1997, such outstanding commitments amounted
to $3.3  million.  Certificates  of deposit  scheduled  to mature in one year or
less, at March 31, 1997,  totaled  $219.1  million.  Management  believes that a
significant portion of such deposits will remain with the Bank.

The Bank is subject to regulatory capital  requirements  mandated by the Federal
Deposit Insurance Corporation ("FDIC"). The Bank is required to maintain minimum
regulatory capital ratios, defined by the FDIC as risk-based ratio capital (Tier
1 and Total) and  leverage  ratio  capital.  The  following  table  presents the
minimum capital requirement ratios and the actual ratios as of March 31, 1997:



                                        Requirement         Actual       Excess
        Risk-based Capital              -----------         ------       ------
                      Tier 1                4.00%            25.71%       21.71%
                      Total                 8.00%            26.96%       18.96%

              Leverage ratio                4.00%             7.31%        3.31%








                                       11

<PAGE>



                          PULSE BANCORP, INC. AND SUBSIDIARY

                                            Part II


ITEM 1.  Legal Proceedings
--------------------------

          As indicated  under "Item 1. Legal  Proceedings"  of the  Registrant's
          Form 10-Q for the quarter ended  December 31, 1996, the Registrant and
          its  subsidiary,  Pulse  Savings  Bank,  had filed  claims under their
          malpractice  insurance  coverage  to recover  losses  associated  with
          fictitious  bridge loans,  and a trial date of April 14, 1997 had been
          established for the litigation.  The trial was indefinitely  postponed
          by the presiding  judge and a settlement is actively  being pursued in
          case management negotiations.


ITEM 2.  Changes in Securities
------------------------------

          Not applicable.


ITEM 3.  Defaults Upon Senior Securities

          Not applicable


ITEM 4.  Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

          Information  concerning  the  January  23,  1997  stockholders  annual
          meeting was disclosed in the Form 10-Q for the quarter ended  December
          31, 1996.


ITEM 5.  Other Materially Important Events
------------------------------------------

          Not applicable


ITEM 6.  Exhibits and Reports on Form 8-K
-----------------------------------------

          Not applicable









                                       12

<PAGE>



                                   SIGNATURES



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




                                  PULSE BANCORP, INC

Date:   5/2/97                 By:/s/ George T. Hornyak, Jr.
      -----------                 --------------------------------------
                                  George T. Hornyak, Jr.
                                  President
                                  Chief Executive Officer
                                  (Duly Authorized Officer)


Date:   5/2/97                 By:/s/ Thomas B. Konopacki
      -----------                 --------------------------------------
                                  Thomas B. Konopacki
                                  Executive Vice President
                                  Chief Financial Officer










                                       13