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, 1998
                               ------------------------------------------------

                                  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 incorporation            (IRS Employer
or organization)                                        Identification No.)



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



Registrant's telephone number, including area code             732-257-2400
--------------------------------------------------------------------------------


                                       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 7, 1998

                      CLASS                         OUTSTANDING
                      -----                         -----------
            $1.00 par value common stock            3,120,300 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,
          1997 and March 31, 1998 (unaudited)                                       1

          Consolidated Statements of Income for the Three and Six Months
          Ended March 31, 1997  and 1998 (unaudited)                                2

          Consolidated Statements of Cash Flows for the Six Months Ended
          March 31, 1997  and 1998 (unaudited)                                      3

          Notes to Consolidated Financial Statements                              4-6

          Managements Discussion and Analysis of Financial Condition and
          Results of Operations                                                  7-12

          Quantitative and Qualitative Disclosures about Market Risk               12

PART II - OTHER INFORMATION                                                        13

          SIGNATURES                                                               14

</TABLE>



<PAGE>

                      PULSE BANCORP, INC. AND SUBSIDIARIES
                 Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
                                                                                September 30,      March 31,
                                                                                    1997            1998
<S>                                                                            <C>             <C>       
ASSETS                                                                                           (Unaudited)
                                                                               ------------------------------
Cash and amounts due from depository institutions............................    $3,550,908      $4,456,445
Federal funds sold...........................................................    11,925,000       7,150,000
                                                                               ------------------------------
    Total cash and cash equivalents..........................................    15,475,908      11,606,445

Investment securities held to maturity; estimated fair value of
  $96,386,850 and $61,697,667, respectively..................................    96,551,885      61,549,509
Mortgage backed securities held to maturity, net; estimated fair
  value of $163,645,986 and $143,105,507, respectively.......................   162,763,525     142,150,608
Investment securities available for sale.....................................    60,741,955     126,654,858
Mortgage-backed securities available for sale................................    53,393,335      45,501,015
Loans receivable, net........................................................   127,310,525     140,269,982
Premises & equipment, net....................................................     1,322,718       1,569,580
Real estate owned, net.......................................................       136,491       2,081,999
Federal Home Loan Bank of New York stock, at cost............................     2,775,500       2,836,700
Interest receivable..........................................................     4,584,337       4,911,973
Other assets.................................................................       959,530         875,477
                                                                               ------------------------------
     Total assets............................................................  $526,015,709    $540,008,146
                                                                               ==============================


LIABILITIES AND
   STOCKHOLDERS' EQUITY
Liabilities:
Deposits.....................................................................  $411,020,719    $428,132,602
Borrowings...................................................................    67,675,000      63,675,000
Advance payments by borrowers for taxes & insurance..........................       805,394         824,235
Other liabilities............................................................     3,308,037       2,345,637
                                                                               ------------------------------
     Total liabilities.......................................................   482,809,150     494,977,474
                                                                               ------------------------------


Stockholders' Equity:
Preferred stock; authorized 5,000,000 shares; issued and
   outstanding - none........................................................        -               -
Common stock; par value $1.00; authorized 10,000,000 shares;
   4,112,128 shares issued and 3,050,048 outstanding and 4,173,380 shares 
   issued and 3,111,300 outstanding,
   respectively..............................................................     4,142,628       4,173,380
Paid in capital in excess of par value.......................................    12,293,206      12,647,740
Retained earnings- substantially restricted..................................    42,676,884      44,161,424
Unrealized gain on securities available for sale, net of tax.................       771,341         725,628
Treasury Stock; at cost; 1,062,080 common shares, respectively...............   (16,677,500)    (16,677,500)
                                                                               ------------------------------
     Total stockholders' equity..............................................    43,206,559      45,030,672
                                                                               ------------------------------
     Total liabilities and stockholders' equity..............................  $526,015,709    $540,008,146
                                                                               ==============================
</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,
                                                                   ------------------------------------------------------------
                                                                      1997            1998            1997            1998
                                                                   ------------------------------------------------------------
<S>                                                                <C>           <C>             <C>            <C>         
Interest income:
   Loans ........................................................   $2,788,005    $  2,868,976    $  5,707,892   $  5,604,199
   Mortgage-backed securities....................................    3,586,640       3,272,407       6,940,531      6,774,455
   Investments and other interest-earning assets.................    2,640,485       3,211,135       5,209,609      6,261,916
                                                                    ------------------------------------------------------------  
      Total interest income......................................    9,015,130       9,352,518      17,858,032     18,640,570
                                                                    ------------------------------------------------------------

Interest expense:
   Deposits......................................................    4,576,517       4,811,550       9,101,957      9,587,061
   Borrowings....................................................      929,246         972,969       1,890,889      2,096,339
                                                                    ------------------------------------------------------------
      Total interest expense.....................................    5,505,763       5,784,519      10,992,846     11,683,400
                                                                    ------------------------------------------------------------

Net interest income..............................................    3,509,367       3,567,999       6,865,186      6,957,170
                                                                    ------------------------------------------------------------
Net interest income after provision for loan losses..............    3,509,367       3,567,999       6,865,186      6,957,170
                                                                    ------------------------------------------------------------

Non-interest income:
   Other fees and service charges on loans.......................       62,524          70,741         143,256        139,838
   (Loss) gain from real estate operations.......................      (13,255)        (30,528)         77,311         (6,088)
   Miscellaneous.................................................       13,344          18,050          43,033         40,690
                                                                    ------------------------------------------------------------
      Total non-interest income..................................       62,613          58,263         263,600        174,440
                                                                    ------------------------------------------------------------
                                                                                                                           

Non-interest expenses:
   Salaries and employee benefits................................      671,098         747,387       1,324,797      1,483,219
   Occupancy expense.............................................       74,915          94,275         151,662        212,053
   Equipment expense.............................................      150,230         164,732         281,423        306,369
   Advertising...................................................       99,357         118,667         194,064        216,658
   Federal deposit insurance premium.............................       63,312          63,917         240,156        128,538
   Miscellaneous.................................................      284,560         314,736         607,533        571,638
                                                                    ------------------------------------------------------------
      Total non-interest expenses................................    1,343,472       1,503,714       2,799,635      2,918,475
                                                                    ------------------------------------------------------------

Income before income taxes.......................................    2,228,508       2,122,548       4,329,151      4,213,135
Income taxes.....................................................      798,000         760,000       1,566,372      1,488,756
                                                                    ------------------------------------------------------------
      Net income.................................................   $1,430,508    $  1,362,548    $  2,762,779   $  2,724,379
                                                                    ===========================================================
                                                                 
Basic earnings per common share..................................   $     0.47    $       0.44   $       0.90    $       0.88
                                                                    ===========================================================
Diluted earnings per common share ...............................   $     0.45    $       0.42   $       0.88    $       0.84
                                                                    ===========================================================
                                                                 
Dividends per common share.......................................   $    0.175    $       0.20   $       0.35    $       0.40
                                                                    ===========================================================
                                                                 
Diluted common shares outstanding................................   3,148,444       3,234,281       3,136,650      3,229,694
                                                                    ===========================================================
</TABLE>
                                                                 

See accompanying notes to consolidated financial statements.

                                        2
<PAGE>

<TABLE>
<CAPTION>

                      PULSE BANCORP, INC. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)                                                      Six Months Ended
                                                                                                         March 31,
                                                                                              ------------------------------
                                                                                                  1997            1998
                                                                                              ------------------------------
<S>                                                                                            <C>             <C>       
Cash flows from operating activities:
  Net income.............................................................................       $2,762,779      $2,724,379
  Adjustments to reconcile net income to net cash provided by
     operating activities:
    Depreciation of premises and equipment...............................................           74,622          85,985
    Provision for losses on real estate owned............................................           32,850            -
    Amortization of premiums, discounts and fees, net....................................          (77,046)        (59,246)
    Gain on sale of real estate owned....................................................         (119,141)           -
    Increase in interest receivable......................................................         (210,535)       (327,636)
    Decrease in other assets.............................................................           18,630          84,053
    Increase (decrease) in other liabilities.............................................        1,752,259        (962,400)
                                                                                              ------------------------------
      Net cash provided by operating activities..........................................        4,234,418       1,545,135
                                                                                              ------------------------------

Cash flows from investing activities:
    Proceeds from maturities and calls of investment securities held to maturity.........        7,002,500      35,010,000
    Purchase of investment securities held to maturity...................................      (10,000,000)          -
    Principal repayments of investment securities available for sale                                 -           8,943,556
    Purchase of investment securities available for sale.................................            -         (74,841,875)
    Purchase of mortgage-backed securities held to maturity..............................      (23,838,620)     (1,007,187)
    Purchase of mortgage-backed securities available for sale............................       (4,940,719)          -
    Principal repayments on mortgage-backed securities held to maturity..................        9,839,918      21,606,829
    Principal repayments on mortgage-backed securities available for sale................        2,626,241       7,896,155
    Net decrease (increase) in loans receivable..........................................        4,818,014     (14,904,199)
    Additions to premises and equipment..................................................          (59,313)       (332,847)
    Proceeds from sale of real estate owned..............................................        2,332,115           -
    Purchase of Federal Home Loan Bank of New York Stock.................................         (232,400)        (61,200)
                                                                                              ------------------------------
      Net cash provided by used in investing activities..................................      (12,452,264)    (17,690,768)
                                                                                              ------------------------------

Cash flows from financing activities:
    Net increase in deposits.............................................................       15,125,776      17,111,883
    Net decrease in borrowings...........................................................       (1,725,000)     (4,000,000)
    Decrease in advance payments by borrowers
      for taxes and insurance............................................................           17,652          18,841
    Issuance of common stock.............................................................           88,210         385,286
    Cash dividends paid..................................................................       (1,069,442)     (1,239,840)
                                                                                              ------------------------------
      Net cash provided by financing activities..........................................       12,437,196      12,276,170
                                                                                              ------------------------------

Net increase (decrease) in cash and cash equivalents.....................................        4,219,350      (3,869,463)
Cash and cash equivalents - beginning ...................................................        4,749,883      15,475,908
                                                                                              ------------------------------
Cash and cash equivalents - ending.......................................................       $8,969,233     $11,606,445
                                                                                              ==============================

Supplemental schedule of non-cash investing activities:
      Transfer of loans receivable to real estate owned..................................         $208,500      $1,950,508
                                                                                              ==============================
Cash paid during the period for:
      Income taxes.......................................................................         $300,000      $1,614,140
                                                                                              ==============================
      Interest...........................................................................      $10,987,659     $11,484,126
                                                                                              ==============================
</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, 1998
are not  necessarily  indicative  of the results  which may be expected  for the
entire fiscal year.
<TABLE>
<CAPTION>

3. LOANS RECEIVABLE, NET                                                  September 30,     March 31,
------------------------                                                       1997           1998
                                                                        ------------------------------
<S>                                                                       <C>             <C>         
Real Estate Mortgage:
   One-to-four family.................................................     $77,761,695     $89,397,057
   Multi family.......................................................      15,088,127      12,534,710
   Commercial.........................................................      22,321,707      23,267,889
                                                                        ------------------------------
                                                                           115,171,529     125,199,656
                                                                        ------------------------------
                                                                   
Construction Loans....................................................         219,256         145,590
                                                                               
Consumer:                                                                      
   Home equity.......................................................       14,348,020      16,973,356
   Passbook or certificate...........................................          229,173         179,894
                                                                        ------------------------------
                                                                            14,577,193      17,153,250
                                                                        ------------------------------
        Total loans...................................................     129,967,978     142,498,496
                                                                           ---------------------------
                                                                           
Less: Allowance for loan losses.......................................       2,357,396       2,005,552
         Deferred loan fees and discounts.............................         300,057         222,962
                                                                        ------------------------------
                                                                             2,657,453       2,228,514
                                                                        ------------------------------
                                                                          $127,310,525    $140,269,982
                                                                        ==============================
</TABLE>

<TABLE>
<CAPTION>

An analysis of the allowance for loan losses is as follows:                         Six Months Ended
                                                                                        March 31,
                                                                            -------------------------------
                                                                                   1997            1998
                                                                                   ----            ----
<S>                                                                             <C>             <C>       
               Balance-beginning........................................        $2,458,777      $2,357,396
               Provisions charged to operations.........................              -              -
               Losses charged to allowance..............................          (101,381)       (351,844)
                                                                            -------------------------------
               Balance-ending...........................................        $2,357,396      $2,005,552
                                                                            ===============================
</TABLE>

                                        4
<PAGE>
                      PULSE BANCORP, INC. AND SUBSIDIARIES
                   Notes To Consolidated Financial Statements

4. INVESTMENT SECURITIES
<TABLE>
<CAPTION>
                                                                  September 30, 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)             $95,954,388       $313,494       $503,532     $95,764,350
Obligations of state and political
    subdivisions                                     597,497         25,003       -                622,500
                                              -------------------------------------------------------------
                                                 $96,551,885       $338,497       $503,532     $96,386,850
                                              =============================================================

Available For Sale
U.S. Government Agency Debentures                $59,822,275       $333,264       $237,084     $59,918,455
Equity securities                                    800,000         23,500       -                823,500
                                              -------------------------------------------------------------
                                                 $60,622,275       $356,764       $237,084     $60,741,955
                                              =============================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                      March 31, 1998
                                              -------------------------------------------------------------
                                                                   Gross          Gross         Estimated
                                                   Carrying      Unrealized     Unrealized        Fair
Held To Maturity                                    Value          Gains          Losses          Value
                                              -------------------------------------------------------------
<S>                                             <C>               <C>            <C>          <C>        
U.S. Government (including agencies)             $60,961,998       $255,535       $129,045     $61,088,488
Obligations of state and political                   587,511         21,668         -              609,179
    subdivisions
                                              -------------------------------------------------------------
                                                 $61,549,509       $277,203       $129,045     $61,697,667
                                              =============================================================

Available For Sale
U.S. Government Agency Debentures               $124,678,734       $473,200       $240,926    $124,911,008
Equity securities                                  1,638,750        105,100         -            1,743,850
                                              -------------------------------------------------------------
                                                $126,317,484       $578,300       $240,926    $126,654,858
                                              =============================================================
</TABLE>


                                        5
<PAGE>

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


5. MORTGAGE-BACKED SECURITIES
<TABLE>
<CAPTION>
                                                                 September 30, 1997
                                              -------------------------------------------------------------
                                                                   Gross          Gross         Estimated
                                                   Carrying      Unrealized     Unrealized        Fair
Held To Maturity                                    Value          Gains          Losses          Value
                                              -------------------------------------------------------------
<S>                                             <C>             <C>            <C>            <C>        
Government National Mortgage Association         $62,595,447     $1,404,217         -          $63,999,664
Federal Home Loan Mortgage Corporation            35,726,553        409,980        265,291      35,871,242
Federal National Mortgage Association             30,556,079        182,409     $  155,962      30,582,526
Collateralized mortgage obligations               33,885,446          1,836     $  694,728      33,192,554
                                              -------------------------------------------------------------
                                                $162,763,525     $1,998,442     $1,115,981    $163,645,986
                                              =============================================================
Available For Sale
Government National Mortgage Association         $33,217,483       $774,300     $   -          $33,991,783
Federal Home Loan Mortgage Corporation             9,473,817        189,614         -            9,663,431
Federal National Mortgage Association              9,616,497        121,624         -            9,738,121
                                              -------------------------------------------------------------
                                                 $52,307,797     $1,085,538     $   -          $53,393,335
                                              =============================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                   March 31, 1998
                                              -------------------------------------------------------------
                                                                   Gross          Gross         Estimated
                                                   Carrying      Unrealized     Unrealized        Fair
Held To Maturity                                    Value          Gains          Losses          Value
                                              -------------------------------------------------------------
<S>                                             <C>              <C>            <C>           <C>         
Government National Mortgage Association        $ 53,534,764     $1,105,000     $   15,688    $ 54,624,076
Federal Home Loan Mortgage Corporation            29,883,622        419,324        204,588      30,098,358
Federal National Mortgage Association             27,385,094        238,707        129,145      27,494,656
Collateralized mortgage obligations               31,347,128          1,471        460,182      30,888,417
                                              -------------------------------------------------------------
                                                $142,150,608     $1,764,502     $  809,603    $143,105,507
                                              =============================================================
Available For Sale
Government National Mortgage Association        $ 27,564,662     $  475,575     $     -       $ 28,040,237
Federal Home Loan Mortgage Corporation             8,849,924        243,190           -          9,093,114
Federal National Mortgage Association              8,290,011         85,918          8,265       8,367,664
                                              -------------------------------------------------------------
                                                $ 44,704,597     $  804,683     $    8,265    $ 45,501,015
                                              =============================================================
</TABLE>

6. NET INCOME PER COMMON SHARE
------------------------------

The  Corporation  adopted  SFAS No.  128 (SFAS 128)  "Earnings  per Share" as of
December 31, 1997 and basic earnings per common share has been calculated  based
on the weighted average number of shares outstanding. Diluted earnings per share
includes  common  stock  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 purchased from the proceeds at the average
price of the Corporation's  common stock.  Earnings per share data for the three
and six  months  ending  March  31,  1997  has  been  restated  pursuant  to the
provisions of SFAS 128.



                                       6.



<PAGE>


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

The  Corporation  may from time to time make  written  or oral  "forward-looking
statements",  including statements  contained in the Corporation's  filings with
the Securities and Exchange Commission  (including this quarterly report on Form
10-Q and the  exhibits  thereto),  in its reports to  stockholders  and in other
communications  by  the  Corporation,  which  are  made  in  good  faith  by the
Corporation  pursuant to the "safe harbor"  provisions of the Private Securities
Litigation Reform Act of 1995.

These  forward-looking  statements  involve  risks  and  uncertainties,  such as
statements of the Corporation's plans, objectives,  expectations,  estimates and
intentions,  that are subject to change based on various important factors (some
of which are beyond the Corporation's  control).  The following  factors,  among
others, could cause the Corporation's financial performance to differ materially
from the plans, objectives,  expectations, estimates and intentions expressed in
such  forward-looking  statements:  the strength of the United States economy in
general  and the  strength  of the  local  economies  in which  the  Corporation
conducts operations;  the effect of, and changes in, trade,  monetary and fiscal
policies and laws, including interest rate policies of the Board of Governors of
the Federal  Reserve  System,  inflation,  interest  rate,  market and  monetary
fluctuations;  the timely  development  of and  acceptance  of new  products and
services of the  Corporation  and the perceived  overall value of these products
and services by users,  including the features,  pricing and quality compared to
competitors'  products and  services;  the  willingness  of users to  substitute
competitors' products and services for the Corporation's  products and services;
the success of the  Corporation in gaining  regulatory  approval of its products
and services,  when required;  the impact of changes in financial services' laws
and  regulations  (including  laws  concerning  taxes,  banking,  securities and
insurance);  technological changes,  acquisitions;  changes in consumer spending
and savings  habits;  and the success of the  Corporation  at managing the risks
involved in the foregoing.

The  Corporation  cautions that the foregoing  list of important  factors is not
exclusive.  The  Corporation  does not  undertake to update any  forward-looking
statement,  whether written or oral, that may be made from time to time by or on
behalf of the Corporation.

FINANCIAL CONDITION


The  Corporation's  assets at March  31,  1998  totaled  $540.0  million,  which
represents  an  increase  of $14.0  million or 2.7% when  compared  with  $526.0
million at September 30, 1997.  Total deposits at March 31, 1998 increased $17.1
million or 4.2% to $428.1 million when compared with $411.0 million at September
30, 1997.  Investment  securities  held to maturity  decreased  $35.0 million or
36.3% to $61.5  million at March 31, 1998 when  compared  with $96.6  million at
September 30, 1997.  Investment  securities  available for sale increased  $65.9
million or 108.5% to $126.7  million at March 31,  1998 when  compared  to $60.7
million at September  30, 1997.  The increase was a result of purchases of $74.8
million,   which  more  than  offset  principal   repayments  of  $8.9  million.
Mortgage-backed  securities held to maturity decreased by $20.6 million or 12.7%
to $142.2 million at March 31, 1998 when compared to $162.8 million at September
30,  1997.  The  decrease in  mortgage-backed  securities  held to maturity  was
primarily due to repayments of $21.6 million,  which more than offset  purchases
of $1.0 million.  Mortgage-backed  securities  available for sale decreased $7.9
million or 14.8% to $45.5 million at March 31, 1998 compared to $53.4 million at
September 30, 1997.  The decrease in  mortgage-backed  securities  available for
sale was due to principal repayments of $7.9 million. Loans receivable increased
$13.0 million or 10.2% to $140.3

                                        7

<PAGE>



million at March 31, 1998 when compared to $127.3 million at September 30, 1997.
The  increase  was a  result  of loan  originations  of  $20.7  million  and the
purchases  of 1-4 family loans  totaling  $3.2  million,  which more than offset
principal repayments of $8.9 million, along with the transfer of $2.0 million in
loans to real estate owned. Other liabilities decreased by $1.0 million or 29.1%
to $2.3  million at March 31, 1998  compared to $3.3  million at  September  30,
1997. The decrease was primarily due to a decrease in the  Corporation's  income
tax liability.  Other assets remained relatively  unchanged at $875,000 at March
31,  1998.  Real  estate  owned,  which  consists  of real  estate  acquired  in
settlement  of loans,  totaled  $2.1  million and $136,000 at March 31, 1998 and
September  30, 1997,  respectively.  The  increase was due to three  non-accrual
multi-family  mortgage loans totaling $2.0 million that  transferred  during the
period.  Stockholders'  equity  amounted to $45.0  million and $43.2  million at
March 31, 1998 and September 30, 1997, respectively.


Results of operations for three months ended March 31, 1998 and 1997

Net income decreased $68,000 or 4.8% to $1.36 million for the three months ended
March 31, 1998 compared to $1.43 million for the same 1997 period.  The decrease
was attributable to increases in interest and non-interest expenses,  which more
than offset an increase in interest income.  Interest income on loans during the
three months ended March 31, 1998 increased $81,000 or 2.9% to $2.9 million when
compared to $2.8 million  during the same 1997 period.  The increase  during the
1998  period  resulted  from  an  increase  in  the  average  balance  of  loans
outstanding,  which more than offset a decrease in the average yield on the loan
portfolio.  Interest on mortgage-backed securities decreased by $314,000 or 8.8%
during the three  months ended March 31, 1998 when  compared  with the same 1997
period as a result of decreased  balances.  Interest  earned on investments  and
other interest-earning assets increased $571,000 or 21.6% to $3.2 million during
the three months ended March 31, 1998 when  compared to $2.6 million  during the
same 1997 period. The increase during the 1998 period resulted primarily from an
increase in the average balance of investments and other interest-earning assets
outstanding.


Interest on deposits  increased  $235,000 or 5.1% to $4.8  million for the three
months ended March 31, 1998 compared to $4.6 million during the same 1997 period
primarily as a result of increased deposits outstanding.  Interest on borrowings
was $973,000 for the three months ended March 31, 1998  compared  with  $929,000
for the same 1997 period. The increase was due to an increase in the Bank's cost
of borrowing, along with a higher average balance outstanding of securities sold
under repurchase agreements during the 1998 period.

During the three  months ended March 31, 1998 and 1997 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, 1998 and
September  30, 1997,  the Bank's  non-performing  loans,  which  includes  loans
delinquent 90 days or more, totaled $1.2 million and $1.7 million, respectively.
The allowance  for loan losses  amounted to $2.0 million or 1.43% of total loans
at March 31,  1998 and $2.4  million or 1.82% of total  loans at  September  30,
1997.

Non-interest  income decreased $4,000 or 7.0% to $58,000 during the three months
ended March 31, 1998 when  compared  with  $62,000  during the same 1997 period.
Non-interest expenses increased $160,000 or

                                        8

<PAGE>



12.0% to $1.5 million during the three months ended March 31, 1998 when compared
with $1.3  million  during the same 1997  period.  During the three months ended
March 31,  1998,  salaries  and  employee  benefits,  miscellaneous,  occupancy,
advertising,  and equipment increased by $76,000,  $30,000, $19,000, $19,000 and
$15,000,  respectively.  The increase in salaries and employee benefits resulted
from an increase in the number of full-time equivalent staff required due to the
addition  of our  East  Brunswick  office,  along  with a  general  increase  in
compensation levels.

Income tax expense  totaled  $760,000 and $798,000 during the three months ended
March 31, 1998 and 1997,  respectively.  The  decrease  was  primarily  due to a
decrease in taxable income.

Results of operations for six months ended March 31, 1998 and 1997

Net income  decreased  $38,000 or 1.4% to $2.72 million for the six months ended
March 31, 1998 compared to $2.76 million for the same 1997 period.  The decrease
was  attributable to an increase in interest and  non-interest  expenses,  along
with a decrease in  non-interest  income,  which more than offset an increase in
interest income.  Interest income on loans during the six months ended March 31,
1998  decreased  $104,000 or 1.8% to $5.6 million when  compared to $5.7 million
during the same 1997 period.  The decrease  during the 1998 period resulted in a
decrease in the average yield on the loan portfolio. Interest on mortgage-backed
securities  decreased  by $166,000 or 2.4% during the six months ended March 31,
1998 when compared with the same 1997 period as a result of decreased  balances.
Interest earned on investments and other interest-earning  assets increased $1.1
million or 20.2% to $6.3 million during the six months ended March 31, 1998 when
compared to $5.2 million  during the same 1997 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  $485,000  or 5.3% to $9.6  million for the six
months  ending  March 31,  1998  compared to $9.1  million  during the same 1997
period  primarily as a result of increased  deposits  outstanding  along with an
increase in the bank's cost of funds.  Interest on  borrowings  was $2.1 million
for the six months ended March 31, 1998  compared with $1.9 million for the same
1997 period.  The increase was due to a higher  average  balance  outstanding of
securities sold under repurchase  agreements during the 1997 period,  along with
an increase in the Bank's cost of borrowing.

During the six months  ended  March 31,  1998 and 1997 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, 1998 and
September  30, 1997,  the Bank's  non-performing  loans,  which  includes  loans
delinquent 90 days or more, totaled $1.2 million and $1.7 million, respectively.
The allowance  for loan losses  amounted to $2.0 million or 1.43% of total loans
at March 31,  1998 and $2.4  million or 1.82% of total  loans at  September  30,
1997.

Non-interest income decreased $89,000 or 33.8% to $174,000 during the six months
ended March 31, 1998 when compared  with  $263,000  during the same 1997 period.
The decrease  during the 1998 period resulted from decreases in income from real
estate  operations,  other fees and service  charges on loans and  miscellaneous
income of $83,000, $3,000 and 2,000,  respectively.  The decrease in income from
real estate  operations was mostly due to a gain of $119,000  recorded on a sale
during the 1997 period.

                                        9

<PAGE>



Non-interest  expenses increased $119,000 or 4.2% to $2.9 million during the six
months ended March 31, 1998 when compared with $2.8 million during the same 1997
period.  During the six months  ended  March 31,  1998,  salaries  and  employee
benefits, occupancy,  equipment, and advertising increased by $158,000, $60,000,
$25,000 and $23,000,  respectively,  which more than offset decreases to federal
deposit   insurance  and   miscellaneous   expenses  of  $112,000  and  $36,000,
respectively.  The increase in salaries and employee  benefits  resulted from an
increase  in the  number  of  full-time  equivalent  staff  required  due to the
addition  of our  East  Brunswick  office,  along  with a  general  increase  in
compensation  levels.  Furthermore,  the  increases in occupancy  and  equipment
expenses  were also the result of the new  office.  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 Savings  Association
Insurance Fund.

Income tax expense  totaled $1.5 million and $1.6 million  during the six months
ended March 31, 1998 and 1997, respectively. The decrease was primarily due to a
decrease in taxable income.

Year 2000

The  Company  has a year 2000  committee  in place that is  comprised  of senior
management  that is diligently  working towards the remediation of any year 2000
problems  with any of the Bank's  internal or  external  computer  systems.  All
automated  systems  have been  assessed  and all third party  vendors  have been
contacted for their  responses on the matter.  Any vendor not  responding to our
compliance  efforts will have their system  replaced  with one that is year 2000
certified in the quarter ending December 31, 1998.

Most of the critical data  processing of the Bank that could be impacted by this
problem is provided by a third party national service bureau. The service bureau
has advised the Bank that they expect all modifications to the system to be 100%
completed  during May,  1998.  During that month live testing of the core system
will occur at the service bureau by representative  users of the system.  During
the  quarter  ending  September  30,  1998,  the Bank  expects to test in a live
environment,  operating  on a date in the year  2000,  the  compatablity  of the
Bank's internal systems with that of the service bureau's core system.

As of April 1998,  the Bank has completed  replacing all of it's  computers at a
cost of approximately  $100,000. The replacement of these machines was a project
that was anticipated in the normal course of business,  not just a result of the
year 2000.

The Bank continues to evaluate  appropriate courses of corrective action.  Based
on current  analysis,  the Bank does not expect  additional  expenses  to have a
material  effect on it's financial  position or results of operations.  However,
despite our best efforts,  factors  outside our control could  possibly weigh on
our ability to process data, possibly leading to an adverse impact on the Bank's
results of operations

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

                                       10

<PAGE>



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,  1998 and  September  30,  1997  totaled  $15.5
million and $11.6 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,
                                            --------------------------
                                                 1997       1998
                                                 (In Thousands)
                                            
Cash and cash equivalents- beginning           $  4,750    $ 15,476
                                               --------------------
                                            
Operating activities:                       
  Net income                                      2,763       2,724
  Adjustments to reconcile net              
  income to net cash provided               
   by operating activities                        1,471      (1,179)
                                               --------------------
                                            
Net cash provided by operating activities         4,234       1,545
                                            
Net cash used in investing activities           (12,452)    (17,691)
Net cash  provided by financing activities       12,437      12,276
                                               --------------------
Net increase (decrease) in cash and         
          cash equivalents                        4,219      (3,870)
                                               --------------------
Cash and cash equivalents- ending              $  8,969    $ 11,606
                                               ====================
                                          


Cash was generated by operating activities during the 1998 and 1997 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
increased $14.9 million during the six months ended March 31, 1998 compared to a
decrease  of $4.8  million  during the same 1997  period.  During the six months
ended March 31, 1998 and 1997,  purchases of mortgage-backed  securities totaled
$1.0 million and $28.7 million,  respectively,  and principal repayments totaled
$29.5 million and $12.4 million, respectively. During the six months ended March
31, 1998 and 1997, purchases of investment  securities totaled $74.8 million and
$10.0 million,  respectively, and maturities and calls totaled $43.9 million and
$7.0 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 1998 and 1997 periods was
from an increase in deposits  outstanding  amounting to $17.1  million and $15.1
million,  respectively.  Net  borrowings  decreased  $4 million and $1.7 million
during 1998 and 1997,  respectively.  During the six months ended March 31, 1998
and 1997, cash dividends of $1.24 million and $1.07 million, respectively,  were
paid on

                                       11

<PAGE>



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, 1998, such outstanding commitments amounted
to $7.3  million.  Certificates  of deposit  scheduled  to mature in one year or
less, at March 31, 1998,  totaled  $236.3  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, 1998:

<TABLE>
<CAPTION>
                                                Requirement         Actual       Excess
                                              -------------------------------------------
                       <S>                           <C>           <C>          <C>   
                        Risk-based Capital
                                      Tier 1          4.00%         25.41%       21.41%
                                      Total           8.00%         26.65%       18.65%

                              Leverage ratio          4.00%          7.64%        3.64%
</TABLE>



Quantitative and Qualitative Disclosures about Market Risk

          Not applicable.











                                       12

<PAGE>









                       PULSE BANCORP, INC. AND SUBSIDIARY

                                     Part II

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

          Not applicable.

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  22,  1998  stockholders  annual
          meeting was disclosed in the Form 10-Q for the quarter ended  December
          31, 1997.

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

          Not applicable

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

          Not applicable





                                       13

<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: May 14, 1998                By:/s/ George T. Hornyak
     ------------------------        -----------------------------------
                                     George T. Hornyak, Jr.
                                     President
                                     Chief Executive Officer
                                     (Duly Authorized Officer)


Date: May 14, 1998                By:/s/ Thomas B. Konopacki
     ------------------------        ----------------------------------
                                     Thomas B. Konopacki
                                     Executive Vice President
                                     Chief Financial Officer




                                       14