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                 June 30, 1997
                               ------------------------------------------------

                                       OR

             TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----------  EXCHANGE ACT OF 1934
For the transition period from                       to
                              -----------------------   ----------------------

                           Commission File Number            0-18764
                                                  --------------------------


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


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



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 August 5, 1997

                    CLASS                        OUTSTANDING
                    -----                        -----------
        $1.00 par value common stock          3,080,548 Shares



<PAGE>



                      PULSE BANCORP, INC. AND SUBSIDIARIES



                                      Index
<TABLE>
<CAPTION>


                                                                                     Page Number

<S>                                                                                    <C> 
PART I - CONSOLIDATED  FINANCIAL INFORMATION

          Consolidated Statements of Financial Condition at September 30,
          1996 and June 30, 1997 (unaudited)                                              1

          Consolidated Statements of Income for the Three and Nine Months
          Ended June 30, 1996  and 1997 (unaudited)                                       2

          Consolidated Statements of Cash Flows for the Nine Months Ended
          June 30, 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,      June 30, 
                                                                           1996             1997
                                                                                          (Unaudited)
                                                                      ------------------------------ 
<S>                                                                   <C>              <C>          
ASSETS 
------ 
Cash and amounts due from depository institutions .................   $   4,249,883    $   4,665,138
Federal funds sold ................................................         500,000       14,200,000
                                                                      ------------------------------
    Total cash and cash equivalents ...............................       4,749,883       18,865,138

Investment securities held to maturity; estimated fair value of
  $103,192,000 and $101,310,000, respectively .....................     105,549,457      102,550,654
Mortgage backed securities held to maturity, net; estimated fair
  value of $162,617,000 and $172,260,000, respectively ............     164,091,984      172,403,439
Investment securities available for sale ..........................      39,054,697       39,397,990
Mortgage-backed securities available for sale .....................      40,255,064       56,081,073
Loans receivable, net .............................................     134,547,804      119,703,988
Premises & equipment, net .........................................       1,235,135        1,188,487
Real estate owned, net ............................................       2,232,624          113,400
Federal Home Loan Bank of New York stock, at cost .................       2,543,100        2,775,500
Interest receivable ...............................................       4,527,354        4,724,167
Other assets ......................................................       3,712,747        2,398,763
                                                                      ------------------------------
     Total assets .................................................   $ 502,499,849    $ 520,202,599
                                                                      ==============================


LIABILITIES AND
---------------
   STOCKHOLDERS' EQUITY
   --------------------
Liabilities:
Deposits ..........................................................   $ 394,580,611    $ 413,003,415
Borrowings ........................................................      64,275,000       60,900,000
Advance payments by borrowers for taxes & insurance ...............         628,243          706,146
Other liabilities .................................................       4,557,461        3,728,373
                                                                      ------------------------------
     Total liabilities ............................................     464,041,315      478,337,934
                                                                      ------------------------------


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
   4,132,628 shares issued and 3,070,548 outstanding,
   respectively ...................................................       4,111,958        4,132,628
Paid in capital in excess of par value ............................      12,105,541       12,236,019
Retained earnings- substantially restricted .......................      39,147,609       41,782,091
Unrealized (loss) gain on securities available for sale, net of tax        (229,074)         391,427
Treasury Stock; at cost; 1,062,080 common shares, respectively ....     (16,677,500)     (16,677,500)
                                                                      ------------------------------
     Total stockholders' equity ...................................      38,458,534       41,864,665
                                                                      ------------------------------
     Total liabilities and stockholders' equity ...................   $ 502,499,849    $ 520,202,599
                                                                      ==============================

</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             Nine Months Ended
                                                                      June 30,                      June 30,
                                                           -----------------------------------------------------------
                                                                1996            1997           1996            1997
                                                           -----------------------------------------------------------
<S>                                                        <C>             <C>            <C>             <C>         
Interest income:
   Loans ...............................................   $  2,885,786    $  2,678,398   $  8,909,962    $  8,386,290
   Mortgage-backed securities ..........................      3,103,083       3,753,811      8,900,154      10,694,342
   Investments and other interest-earning assets .......      2,264,674       2,653,990      6,144,963       7,863,599
                                                           -----------------------------------------------------------
      Total interest income ............................      8,253,543       9,086,199     23,955,079      26,944,231
                                                           -----------------------------------------------------------
Interest expense:
   Deposits ............................................      4,388,038       4,734,047     13,362,118      13,836,004
   Borrowings ..........................................        405,499         913,435        405,499       2,804,324
                                                           -----------------------------------------------------------
      Total interest expense ...........................      4,793,537       5,647,482     13,767,617      16,640,328
                                                           -----------------------------------------------------------

Net interest income ....................................      3,460,006       3,438,717     10,187,462      10,303,903
                                                           -----------------------------------------------------------
Net interest income after provision for loan losses ....      3,460,006       3,438,717     10,187,462      10,303,903
                                                           -----------------------------------------------------------
Non-interest income:
   Other fees and service charges on loans .............         86,376          79,734        202,549         222,990
   Income (expense) from real estate operations ........        (23,828)          5,284        (20,528)         82,595
   Miscellaneous .......................................          2,695         113,079         54,609         156,112
                                                           -----------------------------------------------------------
      Total non-interest income ........................         65,243         198,097        236,630         461,697
                                                           -----------------------------------------------------------
Non-interest expenses:
   Salaries and employee benefits ......................        614,645         690,984      1,799,877       2,015,781
   Occupancy expense ...................................         58,390          55,842        211,775         207,504
   Equipment expense ...................................        123,302         132,179        399,740         413,602
   Advertising .........................................         90,653         118,927        223,634         312,991
   Federal deposit insurance premium ...................        226,277          64,591        675,285         304,747
   Miscellaneous .......................................        249,721         270,799        776,222         878,332
                                                           -----------------------------------------------------------
      Total non-interest expenses ......................      1,362,988       1,333,322      4,086,533       4,132,957
                                                           -----------------------------------------------------------
Income before income taxes .............................      2,162,261       2,303,492      6,337,559       6,632,643
Income taxes ...........................................        773,000         825,000      2,279,634       2,391,372
                                                           -----------------------------------------------------------
      Net income .......................................   $  1,389,261    $  1,478,492   $  4,057,925    $  4,241,271
                                                           ===========================================================

Net income per common share and common stock equivalents   $       0.36    $       0.47   $       1.03    $       1.35
                                                           ===========================================================

Dividends per common share .............................   $      0.175    $      0.175   $      0.525    $      0.525
                                                           ===========================================================

Weighted average number of common shares and common
   stock equivalents outstanding .......................      3,873,129       3,171,827      3,923,419       3,145,585
                                                           ===========================================================
</TABLE>

See accompanying notes to consolidated financial statements.

                                       2



<PAGE>
                      PULSE BANCORP, INC. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                         Nine Months Ended
                                                                                             June 30, 
                                                                                   ----------------------------
                                                                                         1996           1997
                                                                                   ----------------------------
<S>                                                                                <C>             <C>         
Cash flows from operating activities:
  Net income ...................................................................   $  4,057,925    $  4,241,271
  Adjustments to reconcile net income to net cash provided by
     operating activities:
    Depreciation of premises and equipment .....................................        104,334         110,973
    Provision for losses on real estate owned ..................................         76,000          32,850
    Amortization of premiums, discounts and fees, net ..........................       (157,178)        (85,115)
    Gain on sale of real estate owned ..........................................        (62,462)       (124,951)
    Increase in interest receivable ............................................       (349,668)       (196,813)
    (Increase) decrease in other assets ........................................       (178,288)      1,313,984
    Decrease in other liabilities ..............................................       (432,233)       (829,088)
                                                                                   ----------------------------
      Net cash provided by operating activities ................................      3,058,430       4,463,111
                                                                                   ----------------------------
Cash flows from investing activities:
    Proceeds from maturities and calls of investment securities held to maturity     55,000,000      13,002,500
    Purchase of investment securities held to maturity .........................    (65,951,545)    (10,000,000)
    Purchase of investment securities available for sale .......................    (10,000,000)
    Purchase of mortgage-backed securities held to maturity ....................    (40,624,538)    (35,089,594)
    Purchase of mortgage-backed securities available for sale ..................    (15,323,082)    (19,960,979)
    Principal repayments on mortgage-backed securities held to maturity ........     17,339,831      26,758,186
    Principal repayments on mortgage-backed securities available for sale ......      3,830,530       4,524,286
    Net decrease in loans receivable ...........................................        851,516      14,624,578
    Additions to premises and equipment ........................................       (131,676)        (64,325)
    Proceeds from sale of real estate owned ....................................        868,762       2,419,825
    Purchase of Federal Home Loan Bank of New York Stock .......................         (2,900)       (232,400)
                                                                                   ----------------------------
      Net cash used in investing activities ....................................    (54,143,102)     (4,017,923)
                                                                                   ----------------------------
Cash flows from financing activities:
    Net increase in deposits ...................................................      7,060,978      18,422,804
    Net decrease in borrowings .................................................     65,368,256      (3,375,000)
    Increase in advance payments by borrowers
      for taxes and insurance ..................................................        193,703          77,903
    Issuance of common stock ...................................................        313,402         151,148
    Purchase of treasury stock .................................................    (14,975,000)
    Cash dividends paid ........................................................     (1,889,766)     (1,606,788)
                                                                                   ----------------------------
      Net cash provided by financing activities ................................     56,071,573      13,670,067
                                                                                   ----------------------------
Net increase in cash and cash equivalents ......................................      4,986,901      14,115,255
Cash and cash equivalents - beginning ..........................................      8,761,510       4,749,883
                                                                                   ----------------------------
Cash and cash equivalents - ending .............................................   $ 13,748,411    $ 18,865,138
                                                                                   ============================
Supplemental schedule of non-cash investing activities:
      Transfer of loans receivable to real estate owned ........................   $    742,000    $    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 .............................................................   $  1,875,000    $  1,000,000
                                                                                   ============================
      Interest .................................................................   $ 13,419,648    $ 16,580,635
                                                                                   ============================
</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 nine months ended June 30, 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,       June 30,
                                                                                               1996             1997
                                                                                          ------------------------------
<S>                                                                                       <C>              <C>          
Real Estate Mortgage:  
   One-to-four family .................................................................   $  65,509,636    $  68,261,779
   Multi family .......................................................................      28,190,149       16,582,041
   Commercial .........................................................................      29,882,549       23,077,846
                                                                                          ------------------------------ 
                                                                                            123,582,334      107,921,666
                                                                                          ------------------------------ 

Construction Loans ....................................................................         125,000          332,190

Consumer:
   Home equity ........................................................................      13,543,650       14,013,311
   Passbook or certificate ............................................................         184,185          192,006
                                                                                          ------------------------------ 
                                                                                             13,727,835       14,205,317
                                                                                          ------------------------------ 
        Total loans ...................................................................     137,435,169      122,459,173
                                                                                          ------------------------------ 
Less: Allowance for loan losses .......................................................       2,458,777        2,357,396
         Deferred loan fees and discounts .............................................         428,588          397,789
                                                                                          ------------------------------ 
                                                                                              2,887,365        2,755,185
                                                                                          ------------------------------ 
                                                                                          $ 134,547,804    $ 119,703,988
                                                                                          ==============================
</TABLE>


An analysis of the allowance for loan losses is as follows:
<TABLE>
<CAPTION>
                                                                                                Nine Months Ended 
                                                                                                       June 30,
                                                                                          ------------------------------ 
                                                                                                1996             1997
                                                                                          -------------    ------------- 
<S>                                                                                       <C>              <C>          
                     Balance-beginning ................................................   $   2,603,852    $   2,458,777
                     Provisions charged to operations .................................            --               --
                     Losses charged to allowance ......................................         (98,628)        (101,381)
                                                                                          ------------------------------ 
                     Balance-ending ...................................................   $   2,505,224    $   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
                                                         Value          Gains         Losses          Value
                                                    ---------------------------------------------------------
<S>                                                 <C>            <C>            <C>            <C>         
Held To Maturity                                    
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>
 
                                                                             June 30, 1997
                                                    ---------------------------------------------------------
                                                                       Gross          Gross      Estimated
                                                       Carrying      Unrealized     Unrealized      Fair
                                                        Value          Gains         Losses        Value
                                                    ---------------------------------------------------------
<S>                                                 <C>            <C>            <C>            <C>         
Held To Maturity                                  
U.S. Government (including agencies)                $101,953,163   $    141,451   $  1,406,600   $100,688,014
Obligations of state and political                       597,491         24,229                  $    621,720
    subdivisions
                                                    ---------------------------------------------------------
                                                    $102,550,654   $    165,680   $  1,406,600   $101,309,734
                                                    =========================================================
Available For Sale
U.S. Government Agency Debentures                   $ 39,828,896   $     76,620   $    507,526   $ 39,397,990
                                                    ---------------------------------------------------------
                                                    $ 39,828,896   $     76,620   $    507,526   $ 39,397,990
                                                    =========================================================
</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
                                                            Value                  Gains                Losses            Value
                                                        ----------------------------------------------------------------------------
<S>                                                    <C>                       <C>                 <C>              <C>        
Held To Maturity 
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>

                                                                                          June 30, 1997
                                                        ----------------------------------------------------------------------------
                                                                                   Gross               Gross             Estimated
                                                          Carrying               Unrealized          Unrealized             Fair
                                                            Value                   Gains              Losses              Value
                                                        ----------------------------------------------------------------------------
<S>                                                      <C>                     <C>                    <C>             <C>        
Held To Maturity  
Government National Mortgage Association                 $66,010,948             $1,203,927             $57,611         $67,157,264
Federal Home Loan Mortgage Corporation                    39,140,621                216,320             323,091          39,033,850
Federal National Mortgage Association                     31,665,069                104,405             310,943          31,458,531
Collateralized mortgage obligations                       35,586,801                  3,922             979,943          34,610,780
                                                        ---------------------------------------------------------------------------
                                                        $172,403,439             $1,528,574          $1,671,588        $172,260,425
                                                        ===========================================================================
Available For Sale
GNMA ARMs                                                $35,339,441               $802,462          $    -             $36,141,903
FNMA ARMs                                                  5,016,099                 35,950               -               5,052,049
FNMA fixed                                                 4,996,166                 55,944               -               5,052,110
FHLMC fixed                                                9,696,266                138,745               -               9,835,011
                                                         $55,047,972             $1,033,101                  $0         $56,081,073
                                                        ===========================================================================
</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 June  30,  1997  totaled  $520.2  million,  which
represents  an  increase  of $17.7  million or 3.52% when  compared  with $502.5
million at September 30, 1996.  Total deposits at June 30, 1997 increased  $18.4
million  or 4.67% to  $413.0  million  when  compared  with  $394.6  million  at
September  30,  1996.  Investment  securities  held to maturity  decreased  $3.0
million or 2.84% to $102.6  million at June 30, 1997 when  compared  with $105.6
million at September  30, 1996.  Investment  securities  available for sale were
$39.4  million  and  $39.1  million  at  June  30,  1997  and  Sept.  30,  1996,
respectively.  Mortgage-  backed  securities held to maturity  increased by $8.3
million or 5.07% to $172.4  million  at June 30,  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 $35.1 million,  which more than
offset  principal  repayments  of  $26.8  million.   Mortgage-backed  securities
available  for sale  increased  $15.8 million or 39.31% to $56.1 million at June
30, 1997  compared to $40.3  million at  September  30,  1996.  The  increase in
mortgage-backed  securities available for sale was primarily due to the purchase
of $20.0 million,  which more than offset principal  repayments of $4.5 million.
Loans receivable  decreased $14.9 million or 11.0% to $119.7 million at June 30,
1997 when compared to $134.6  million at September 30, 1996.  The decrease was a
result  of loan  principal  repayments  of $30.0  million  and the  transfer  of
$208,000 of loans to real estate owned, which more than offset loan originations
totaling $15.3 million.  Other liabilities  decreased by $.8 million or 18.2% to
$3.7 million at June 30, 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 $1.3  million or 35.4% during the nine months ended
June  30,  1997,  primarily  from  the  partial  receipt  of  proceeds  from the
settlement  of  the  litigation  of  the  fraudulent  bridge  loan  matter.  The
litigation has been concluded with no additional loss to the Company. Additional
proceeds in full  settlement  of the  litigation  are expected in the near term.
Real estate  owned,  which  consists of real estate  acquired in  settlement  of
loans,  totaled  $113,000  and $2.2 million at June 30, 1997 and  September  30,
1996,  respectively.  The decrease  was a direct  result of sales of real estate
owned  that  generated  proceeds  of $2.4  million  and  gains on such  sales of
$125,000, which more than offset the transfer of $208,000 of loans to other real
estate owned during the period.  Stockholders'  equity amounted to $41.9 million
and $38.5 million at June 30, 1997 and September 30, 1996, respectively.


Results of operations for three months ended June 30, 1997 and 1996

Net income  increased  $89,000 or 6.42% to $1.48  million  for the three  months
ended June 30, 1997  compared to $1.39  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.  Interest  income on loans  during the three months ended June 30, 1997
decreased $207,000 or 7.19% to $2.7 million when compared to $2.9 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 $651,000 or 20.97% during the three months ended June 30, 1997 when
compared with the same 1996 period as a result of increased  balances.  Interest
earned on investments and other  interest-earning  assets increased  $389,000 or
17.19% to $2.7 million during the three months ended June 30, 1997

                                        7

<PAGE>



when compared to $2.3 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.


Interest on deposits  increased  $346,000 or 7.89% to 4.73 million for the three
months  ending June 30,  1997  compared  to $4.39  million  during the same 1996
period  primarily as a result of  increased  deposits  outstanding.  Interest on
borrowings  was $913,000 for the three months ended June 30, 1997  compared with
$406,000  for the same 1996 period.  The  increase  was due to a higher  average
balance  outstanding of securities sold under repurchase  agreements  during the
1997 period.

During the three  months  ended June 30, 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 June 30, 1997 and
September  30, 1996,  the Bank's  non-performing  loans,  which  includes  loans
delinquent 90 days or more, totaled $1.4 million and $1.8 million, respectively.
Furthermore,  the level of loan delinquencies less than 90 days declined to $3.3
million at June 30, 1997  compared to $3.8  million at September  30, 1996.  The
allowance  for loan losses  amounted to $2.4  million or 1.96% of total loans at
June 30, 1997 and $2.5 million or 1.79% of total loans at September 30, 1996.

Non-interest  income increased  $133,000 or 203.63% to $198,000 during the three
months  ended June 30,  1997 when  compared  with  $65,000  during the same 1996
period.  The increase  during the 1997 period  resulted from increases in income
from real estate  operations  and  miscellaneous  income of $29,000 and 110,000,
respectively,  and was somewhat  offset by an increase in income from other fees
and service charges on loans of $7,000. The increase in miscellaneous income was
mostly due to a  settlement  of $100,000  the bank  received in exchange for the
release of its' first  mortgage lien on a residential  property which was deemed
to be an environmental hazard.

Non-interest  expenses  decreased  $30,000 or 2.18% to $1.33 million  during the
three months ended June 30, 1997 when  compared  with $1.36  million  during the
same 1996 period.  During the three  months  ended June 30,  1997,  FDIC deposit
insurance,  and occupany expense decreased by $162,000 and 3,000,  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 $76,000, 28,000, $9,000, and
21,000, respectively..

Income tax expense  totaled  $825,000 and $773,000 during the three months ended
June 30,  1997 and 1996,  respectively.  The  increase  during  the 1997  period
resulted primarily from the increase in income before income taxes.


Results of operations for nine months ended June 30, 1997 and 1996

Net income increased $46,000 or 1.14% to $4.13 million for the nine months ended
June 30, 1997 compared to $4.09  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-

<PAGE>


interest  expense.  Interest  income on loans  during the nine months ended
June 30, 1997 decreased  $524,000 or 5.88% to $8.4 million when compared to $8.9
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 $1.8 million or 20.16%  during the
nine  months  ended June 30, 1997 when  compared  with the same 1996 period as a
result  of  increased  balances.   Interest  earned  on  investments  and  other
interest-earning  assets increased $1.7 million or 27.97% to $7.8 million during
the nine months  ended June 30, 1997 when  compared to $6.1  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.


Interest on deposits  increased  $474,000 or 3.55% to $13.8 million for the nine
months  ending June 30,  1997  compared  to $13.4  million  during the same 1996
period.  Interest on borrowings  was $2.8 million for the nine months ended June
30, 1997 compared  with $405,000 for the same 1996 period.  During 1997 the Bank
utilized  securities sold under  repurchase  agreements to fund its asset growth
strategy.  The  increase  was due to a higher  average  balance  outstanding  of
securities sold under repurchase agreements during the 1997 period.

During the nine  months  ended June 30,  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 June 30, 1997 and
September  30, 1996,  the Bank's  non-performing  loans,  which  includes  loans
delinquent 90 days or more, totaled $1.4 million and $1.8 million, respectively.
Furthermore,  the level of loan delinquencies less than 90 days declined to $3.3
million at June 30, 1997  compared to $3.8  million at September  30, 1996.  The
allowance  for loan losses  amounted to $2.4  million or 1.96% of total loans at
June 30, 1997 and $2.5 million or 1.79% of total loans at September 30, 1996.

Non-interest  income  increased  $225,000 or 95.11% to $462,000  during the nine
months  ended June 30, 1997 when  compared  with  $237,000  during the same 1996
period.  The increase  during the 1997 period  resulted from increases in income
from real estate operations,  miscellaneous,  and other fees and service charges
on loans of  $103,000,  102,000,  and  $20,000,  respectively.  The  increase in
miscellaneous  income  was  mostly  due to a  settlement  of  $100,000  the bank
received  in  exchange  for  the  release  of  its'  first  mortgage  lien  on a
residential property which was deemed to be an environmental hazard.

Non-interest  expenses  increased  $46,000 or 1.14% to $4.13 million  during the
nine months ended June 30, 1997 when compared with $4.09 million during the same
1996 period.  During the nine months  ended June 30, 1997  salaries and employee
benefits,  advertising,  equipment,  and  miscellaneous  expenses  increased  by
$216,000,  $89,000, $14,000 and $102,000,  respectively.  FDIC deposit insurance
premium and occupancy expenses  decreased by $371,000 and $4,000,  respectively.
The large  decrease in FDIC  insurance  expense was a direct result of the lower
insurance premiums during the 1997 period as a result of the recapitalization of
the SAIF insurance fund.

Income tax  expense  totaled  $2.39  million and $2.28  million  during the nine
months ended June 30, 1997 and 1996, respectively.  The increase during the 1997
period resulted primarily from the increase in income before income taxes.


                                        9

<PAGE>




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   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 June 30, 1997 and September
30, 1996  totaled  $14.2  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:



                                                   Nine months ended June 30,
                                                       1996         1997
                                                       -----------------

                                                         (In Thousands)

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

Operating activities:
  Net income                                        4,058                 4,241
  Adjustments to reconcile net
  income to net cash provided
   by operating activities                         (1,000)                  222
                                                 ------------------------------

Net cash provided by operating activities           3,058                 4,463

Net cash used in investing activities             (54,143)               (4,018)
Net cash  provided by financing activities         56,071                13,670
                                                 ------------------------------
Net increase in cash and
         cash equivalents                           4,986                14,115
                                                 ------------------------------
Cash and cash equivalents- ending                $ 13,748              $ 18,865
                                                 ==============================
                                                


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 $14.6 million during the nine months ended June 30, 1997 compared to a
decrease of $.85  million  during the same 1996  period.  During the nine months
ended June 30, 1997 and 1996, purchases of mortgage-backed securities

                                       10

<PAGE>



held to maturity  totaled $55.1  million and $55.9  million,  respectively,  and
principal  repayments  totaled  $31.3 million and $21.2  million,  respectively.
During the nine months  ended June 30, 1997 and 1996,  purchases  of  investment
securities totaled $10.0 million and $76.0 million, respectively, and maturities
and calls totaled $13.0 million and $55.0 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 $18.4  million and $7.1
million, respectively. During the nine months ended June 30, 1997 and 1996, cash
dividends of $1.61  million and $1.89  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 June 30, 1997, such outstanding  commitments amounted
to $11.1  million.  Certificates  of deposit  scheduled to mature in one year or
less,  at June 30, 1997,  totaled  $217.6  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 June 30, 1997:



                                      Requirement         Actual      Excess
                                      ---------------------------------------
         Risk-based Capital
                  Tier 1                4.00%            26.78%       22.78%
                  Total                 8.00%            28.03%       20.03%

               Leverage ratio           4.00%             7.54%        3.54%













                                       11

<PAGE>












                       PULSE BANCORP, INC. AND SUBSIDIARY

                                     Part II


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

          During July 1997, all litigation had been concluded with no additional
          loss to the Company.

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

          Not applicable.


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: August 5, 1997           By: /s/ George T. Hornyak, Jr.
      --------------               ---------------------------------
                                       George T. Hornyak, Jr.
                                       President
                                       Chief Executive Officer
                                       (Duly Authorized Officer)


Date: August 5, 1997           By: /s/ Thomas B. Konopacki         
      --------------               --------------------------------
                                       Thomas B. Konopacki
                                       Executive Vice President
                                       Chief Financial Officer





                                       13