UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                   FORM 10-Q

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

For the quarterly period ended ................................... JUNE 30, 2000

                                       OR

[_]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(D)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from __________ to ___________

Commission File No.: 000-23809


                          FIRST SENTINEL BANCORP, INC.
             (exact name of registrant as specified in its charter)

          DELAWARE                                             22-3566151
(State or other jurisdiction of                          (IRS Employer I.D. No.)
incorporation or organization)

               1000 WOODBRIDGE CENTER DRIVE, WOODBRIDGE, NJ 07095
                    (Address of principal executive offices)

       Registrant's telephone number, including area code: (732) 726-9700

                                 NOT APPLICABLE
       Former Name, Address, and Fiscal year, if changed since last report


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes _X_      No ___


                      APPLICABLE ONLY TO CORPORATE ISSUERS

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


           CLASS                              OUTSTANDING AT AUGUST 1, 2000
-----------------------------          -----------------------------------------
        Common Stock                               34,608,638 shares

<PAGE>


                          FIRST SENTINEL BANCORP, INC.

                               INDEX TO FORM 10-Q

                                                                          Page #

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Consolidated Statements of Financial Condition as of
         June 30, 2000 and December 31, 1999                                   3

         Consolidated Statements of Income for the three and
         six months ended June 30, 2000 and 1999                               4

         Consolidated Statements of Stockholders' Equity for
         the six months ended June 30, 2000 and 1999                           5

         Consolidated Statements of Cash Flows for the six months
         ended June 30, 2000 and 1999                                          6

         Notes to Consolidated Financial Statements                            7

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                             9

Item 3.  Quantitative and Qualitative Disclosure About Market Risk            13

PART II. OTHER INFORMATION                                                    14

         SIGNATURES                                                           15

                                       2
<PAGE>


FIRST SENTINEL BANCORP, INC. AND SUBSIDIARIES
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share data) (Unaudited)

                                                        June 30,    December 31,
                                                          2000         1999
                                                       ----------   ------------
ASSETS
Cash and due from banks ............................   $   20,456    $   11,532
Federal funds sold .................................           --        19,075
                                                       ----------    ----------
  Total cash and cash equivalents ..................       20,456        30,607
Federal Home Loan Bank of New York (FHLB-NY)
  stock, at cost ...................................       19,643        18,100
Investment securities available for sale ...........      241,849       213,590
Mortgage-backed securities available for sale ......      541,835       575,159
Loans available for sale, net ......................          585            --
Loans receivable, net ..............................    1,126,341     1,016,116
Interest and dividends receivable ..................       13,460        12,278
Premises and equipment, net ........................       15,985        16,503
Excess of cost over fair value of net
  assets acquired ..................................        6,682         7,106
Other assets .......................................       16,505        15,237
                                                       ----------    ----------
  Total assets .....................................   $2,003,341    $1,904,696
                                                       ==========    ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits ...........................................   $1,225,011    $1,213,724
Borrowed funds .....................................      540,775       422,000
Advances by borrowers for taxes and insurance ......        9,893         8,385
Other liabilities ..................................        9,977        16,007
                                                       ----------    ----------
    Total liabilities ..............................    1,785,656     1,660,116
                                                       ----------    ----------
STOCKHOLDERS' EQUITY
Preferred Stock; authorized 10,000,000 shares;
  none issued and outstanding ......................           --            --
Common Stock, $.01 par value, 85,000,000
  shares authorized;
  43,106,742 and 34,605,250 shares issued and
    outstanding at 6/30/00 and
  43,106,742 and 38,443,350 shares issued and
    outstanding at 12/31/99 ........................          431           431
Paid-in capital ....................................      201,361       200,781
Retained earnings ..................................      124,882       117,922
Accumulated other comprehensive loss ...............      (21,835)      (17,302)
Less: Treasury stock (8,464,711 and
  4,628,604 shares at June 30, 2000 and
  December 31, 1999, respectively) .................      (72,231)      (41,229)
 Common stock acquired by the Employee Stock
  Ownership Plan (ESOP) ............................      (11,697)      (12,156)
Common stock acquired by the Recognition and
  Retention Plan (RRP) .............................       (3,226)       (3,867)
                                                       ----------    ----------
Total stockholders' equity .........................      217,685       244,580
                                                       ----------    ----------
Total liabilities and stockholders' equity .........   $2,003,341    $1,904,696
                                                       ==========    ==========

See accompanying notes to the unaudited consolidated financial statements.

                                       3
<PAGE>


FIRST SENTINEL BANCORP, INC. AND SUBSIDIARIES
--------------------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share data) (Unaudited)

<TABLE>
<CAPTION>
                                                                               Three months ended             Six months ended
                                                                                    June 30,                      June 30,
                                                                          ---------------------------    ---------------------------
                                                                              2000           1999           2000            1999
                                                                          -----------     -----------    -----------     -----------
<S>                                                                       <C>             <C>            <C>             <C>
INTEREST INCOME:
  Loans ..............................................................    $    20,492     $    16,716    $    39,676     $    32,911
  Investment and mortgage-backed securities
    available for sale ...............................................         13,681          13,766         27,344          27,515
                                                                          -----------     -----------    -----------     -----------
     Total interest income ...........................................         34,173          30,482         67,020          60,426
                                                                          -----------     -----------    -----------     -----------
INTEREST EXPENSE:
 Deposits:
   NOW and money market demand .......................................          2,349           2,327          4,732           4,609
   Savings ...........................................................            942             982          1,883           1,989
   Certificates of deposit ...........................................          8,587           8,561         16,658          17,397
                                                                          -----------     -----------    -----------     -----------
     Total interest expense - deposits ...............................         11,878          11,870         23,273          23,995
 Borrowed funds ......................................................          7,465           4,040         14,299           7,827
                                                                          -----------     -----------    -----------     -----------
     Total interest expense ..........................................         19,343          15,910         37,572          31,822
                                                                          -----------     -----------    -----------     -----------
     Net interest income .............................................         14,830          14,572         29,448          28,604
Provision for loan losses ............................................            393             450            786             900
                                                                          -----------     -----------    -----------     -----------
     Net interest income after provision for loan losses .............         14,437          14,122         28,662          27,704
                                                                          -----------     -----------    -----------     -----------
NON-INTEREST INCOME:
  Fees and service charges ...........................................            553             592          1,130           1,233
  Net (loss) gain on sales of loans and securities
    available for sale ...............................................            (78)            318            (97)            577
  Other income .......................................................            226              93            406             240
                                                                          -----------     -----------    -----------     -----------
     Total non-interest income .......................................            701           1,003          1,439           2,050
                                                                          -----------     -----------    -----------     -----------
NON-INTEREST EXPENSE:
  Compensation and benefits ..........................................          3,625           3,456          7,281           6,801
  Occupancy ..........................................................            560             545          1,171           1,089
  Equipment ..........................................................            438             378            862             795
  Advertising ........................................................            405             353            735             603
  Federal deposit insurance ..........................................             65             191            131             388
  Amortization of intangibles ........................................            212             212            424             425
  General and administrative .........................................            948           1,171          1,980           2,264
                                                                          -----------     -----------    -----------     -----------
     Total non-interest expense ......................................          6,253           6,306         12,584          12,365
                                                                          -----------     -----------    -----------     -----------
     Income before income tax expense ................................          8,885           8,819         17,517          17,389
Income tax expense ...................................................          3,089           2,939          5,985           5,898
                                                                          -----------     -----------    -----------     -----------
     Net income ......................................................    $     5,796     $     5,880    $    11,532     $    11,491
                                                                          ===========     ===========    ===========     ===========
Basic earnings per share .............................................    $      0.17     $      0.15    $      0.33     $      0.28
                                                                          ===========     ===========    ===========     ===========
Weighted average shares outstanding - Basic ..........................     33,886,173      40,489,683     34,773,117      40,694,868
                                                                          ===========     ===========    ===========     ===========
Diluted earnings per share ...........................................    $      0.17     $      0.14    $      0.33     $      0.28
                                                                          ===========     ===========    ===========     ===========
Weighted average shares outstanding - Diluted ........................     34,149,484      41,549,270     35,051,300      41,628,684
                                                                          ===========     ===========    ===========     ===========
</TABLE>

See accompanying notes to the unaudited consolidated financial statements.

                                       4
<PAGE>


FIRST SENTINEL BANCORP, INC. AND SUBSIDIARIES
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Dollars in thousands) (Unaudited)

<TABLE>
<CAPTION>
                                                                        Accumulated
                                                                            Other                   Common     Common       Total
                                                                           Compre-                   Stock      Stock       Stock-
                                         Common   Paid In     Retained     hensive     Treasury    Acquired    Acquired    holders'
                                          Stock   Capital     Earnings   Income(Loss)   Stock      by ESOP      by RRP     Equity
                                         ------------------------------------------------------------------------------------------
<S>                                       <C>    <C>          <C>          <C>         <C>         <C>         <C>        C>
Balance at December 31, 1998 ..........   $431   $ 201,105    $ 112,601    $  2,498    $ (3,664)   $(13,073)   $   (79)   $ 299,819
Net income for the six months ended
   June 30, 1999 ......................     --          --       11,491          --          --          --         --       11,491
Cash dividends declared ($.11) ........     --          --       (4,517)         --          --          --         --       (4,517)
Net change in unrealized gain/(loss)
   on securities available for sale ...     --          --           --     (11,824)         --          --         --      (11,824)
Purchases of treasury stock ...........     --          --           --          --      (8,991)         --         --       (8,991)
Exercise of stock options .............     --           6       (2,418)         --       3,360          --         --          948
Transfer of treasury stock to RRP .....     --          --         (656)         --       5,704          --     (5,048)          --
Amortization of RRP ...................     --          --           --          --          --          --        561          561
Amortization of ESOP ..................     --         (26)          --          --          --         458         --          432
                                         ------------------------------------------------------------------------------------------

Balance at June 30, 1999 ..............   $431   $ 201,085    $ 116,501    $ (9,326)   $ (3,591)   $(12,615)   $(4,566)   $ 287,919
                                         ==========================================================================================

Balance at December 31, 1999 ..........   $431   $ 200,781    $ 117,922    $(17,302)   $(41,229)   $(12,156)   $(3,867)   $ 244,580
Net income for the six months
   ended June 30, 2000 ................     --          --       11,532          --          --          --         --       11,532
Cash dividends declared ($.12) ........     --          --       (4,440)         --          --          --         --       (4,440)
Net change in unrealized gain/(loss)
   on securities available for sale ...     --          --           --      (4,533)         --          --         --       (4,533)
Purchases of treasury stock ...........     --          --           --          --     (31,124)         --         --      (31,124)
Exercise of stock options .............     --          --          (75)         --         122          --         --           47
Tax benefit on stock options ..........     --         600           --          --          --          --         --          600
Purchase and retirement of common
   stock ..............................     --         (14)          --          --          --          --         --          (14)
Amortization of RRP ...................     --          (6)          --          --          --          --        641          635
Amortization of ESOP ..................     --          --          (57)         --          --         459         --          402
                                         ------------------------------------------------------------------------------------------

Balance at June 30, 2000 ..............   $431   $ 201,361    $ 124,882    $(21,835)   $(72,231)   $(11,697)   $(3,226)   $ 217,685
                                         ==========================================================================================
</TABLE>

See accompanying notes to the unaudited consolidated financial statements.

                                       5
<PAGE>


FIRST SENTINEL BANCORP, INC. AND SUBSIDIARIES
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands) (Unaudited)

<TABLE>
<CAPTION>
                                                                                                             Six Months Ended
                                                                                                                 June 30,
                                                                                                         -------------------------
                                                                                                           2000             1999
                                                                                                         --------         --------
<S>                                                                                                      <C>              <C>
Cash flows from operating activities:
   Net income ....................................................................................       $ 11,532         $ 11,491
   ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
   Depreciation of premises and equipment ........................................................            717              682
   Amortization of excess of cost over fair value of assets acquired .............................            424              425
   Amortization of ESOP ..........................................................................            402              432
   Amortization of RRP ...........................................................................            641              561
   Net amortization of premiums and accretion of discounts and deferred fees .....................            597             (482)
   Provision for loan losses .....................................................................            786              900
   Provision for losses on real estate owned .....................................................             --               21
   Loans originated for sale .....................................................................         (1,445)          (7,023)
   Proceeds from sales of mortgage loans available for sale ......................................            847            6,999
   Net loss (gain) on sales of loans and securities available for sale ...........................             97             (577)
   Net loss on sales of real estate owned ........................................................             49               --
   (Increase) decrease in interest and dividends receivable ......................................         (1,182)           1,400
   Increase (decrease) in other liabilities ......................................................            341             (689)
   Increase in other assets ......................................................................            608            1,796
                                                                                                         --------         --------
         Net cash provided by operating activities ...............................................         14,414           15,936
                                                                                                         --------         --------
Cash flows from investing activities:
   Proceeds from sales/calls/maturities of investment securities available for sale ..............         18,647          101,753
   Purchases of investment securities available for sale .........................................        (48,102)         (69,990)
   Purchase of FHLB-NY stock .....................................................................         (1,543)              --
   Proceeds from sales of mortgage-backed securities available for sale ..........................         73,207           72,201
   Principal payments on mortgage-backed securities ..............................................         47,920          130,341
   Purchases of mortgage-backed securities available for sale ....................................        (93,950)        (219,687)
   Principal repayments on loans .................................................................         97,351          137,202
   Origination of loans ..........................................................................       (174,865)        (174,258)
   Purchases of mortgage loans ...................................................................        (33,599)         (12,417)
   Proceeds from sale of real estate owned .......................................................            306            1,252
   Purchases of premises and equipment ...........................................................           (199)            (921)
                                                                                                         --------         --------
         Net cash used in investing activities ...................................................       (114,827)         (34,524)
                                                                                                         --------         --------
Cash flows from financing activities:
   Purchase of treasury stock ....................................................................        (31,124)          (8,991)
   Purchase and retirement of common stock .......................................................            (14)              --
   Stock options exercised .......................................................................             47              948
   Cash dividends paid ...........................................................................        (10,217)          (4,517)
   Net increase (decrease) in deposits ...........................................................         11,287          (14,188)
   Net increase in borrowed funds ................................................................        118,775           23,500
   Net increase in advances by borrowers for taxes and insurance .................................          1,508            1,255
                                                                                                         --------         --------
         Net cash provided by (used in) financing activities .....................................         90,262           (1,993)
                                                                                                         --------         --------
         Net decrease in cash and cash equivalents ...............................................        (10,151)         (20,581)
Cash and cash equivalents at beginning of period .................................................         30,607           37,631
                                                                                                         --------         --------
Cash and cash equivalents at end of period .......................................................       $ 20,456         $ 17,050
                                                                                                         ========         ========
Supplemental disclosures of cash flow information:
   Cash paid during the period for:
      Interest ...................................................................................       $ 36,910         $ 31,339
      Income taxes ...............................................................................          3,030            4,619
   Non cash investing and financing activities for the period:
        Transfer of loans to real estate owned ...................................................       $    104         $  1,242
</TABLE>

See accompanying notes to the unaudited consolidated financial statements.

                                       6
<PAGE>


                  FIRST SENTINEL BANCORP, INC. AND SUBSIDIARIES

              Notes to Unaudited Consolidated Financial Statements

(1) BASIS OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles ("GAAP") for interim
financial  information and in conformity with the  instructions to Form 10-Q and
Article 10 of Regulation S-X for First Sentinel Bancorp,  Inc. ("First Sentinel"
or the "Company") and its wholly-owned subsidiaries, First Savings Bank, ("First
Savings" or the "Bank") Pulse Investment,  Inc., Pulse Insurance Services,  Inc.
and Pulse Real  Estate,  Inc.,  and the Bank's  wholly-owned  subsidiaries,  FSB
Financial Corp., and 1000 Woodbridge Center Drive, Inc.

In the  opinion  of  management,  all  adjustments  (consisting  of only  normal
recurring accruals) necessary to present fairly the financial condition, results
of operations, and changes in cash flows have been made at and for the three and
six months ended June 30, 2000 and 1999. The results of operations for the three
and six months ended June 30, 2000,  are not  necessarily  indicative of results
that may be expected for the entire fiscal year ending December 31, 2000.  These
interim financial statements should be read in conjunction with the December 31,
1999 Annual Report to Stockholders.

(2)  EARNINGS PER SHARE

Basic  earnings  per share is  calculated  by  dividing  net income by the daily
average  number  of common  shares  outstanding  during  the  period.  Potential
dilutive common shares are not included in the calculation.

Diluted  earnings per share is computed  similarly  to basic  earnings per share
except that the  denominator  is increased  to include the number of  additional
common shares that would have been outstanding if all potential  dilutive common
shares were issued utilizing the treasury stock method.

Calculation of Basic and Diluted Earnings Per Share
----------------------------------------------------
(dollars in thousands, except per share data)

                                 Three Months ended         Six Months ended
                                      June 30,                  June 30,
                              ------------------------  ------------------------
                                 2000         1999         2000         1999
                              -----------  -----------  -----------  -----------
Net income .................. $     5,796  $     5,880  $    11,532  $    11,491
                              ===========  ===========  ===========  ===========
Basic weighted-average
  common shares
  outstanding ...............  33,886,173   40,489,683   34,773,117   40,694,868
Plus: Dilutive stock
  options and awards ........     263,311    1,059,587      278,183      933,816
                              -----------  -----------  -----------  -----------
Diluted weighted-average
  common shares
  outstanding ...............  34,149,484   41,549,270   35,051,300   41,628,684
                              ===========  ===========  ===========  ===========
Net income per common share:
   Basic .................... $      0.17  $      0.15  $      0.33  $      0.28
                              ===========  ===========  ===========  ===========
   Diluted .................. $      0.17  $      0.14  $      0.33  $      0.28
                              ===========  ===========  ===========  ===========

(3)  DIVIDENDS

Based upon current  operating  results,  the Company  declared cash dividends of
$0.06 per share on April 24, 2000,  payable May 26,  2000,  to  stockholders  of
record on May 12, 2000.

                                       7
<PAGE>


(4)  COMMITMENTS AND CONTINGENCIES

At June 30, 2000,  the Company had the following  commitments:  (i) to originate
loans of $93.2 million; (ii) to purchase mortgage loans of $22.6 million;  (iii)
to purchase  mortgage-backed  securities  of $10.0  million,  (iv) unused equity
lines of credit of $48.9 million;  (v) unused commercial lines of credit of $7.7
million;  (vi) unused  construction lines of credit of $56.3 million;  and (vii)
letters of credit outstanding  totaling $2.6 million.  Further,  certificates of
deposits,  which are  scheduled to mature  and/or  rollover in one year or less,
totaled $500.5 million at June 30, 2000.

(5)  ALLOWANCE FOR LOAN LOSSES

The following  table  presents the activity in the allowance for loan losses (in
thousands):

                                                   For the six months ended
                                                           June 30,
                                                    ----------------------
                                                      2000          1999
                                                    --------      --------
     Balance at beginning of period                 $ 11,004      $  9,505
     Provision charged to operations                     786           900
     Charge offs, net of recoveries                      (34)          (79)
                                                    --------      --------

     Balance at end of period                       $ 11,756      $ 10,326
                                                    ========      ========

(6)  COMPREHENSIVE  INCOME

Total comprehensive  income (loss),  consisting of net income and the net change
in unrealized gain/(loss) on securities available for sale, was $3.4 million and
$(4.3) million for the quarter ended June 30, 2000 and 1999,  respectively.  For
the six months ended June 30, 2000 and 1999, comprehensive income (loss) totaled
$7.0 million and $(333,000), respectively.

(7)  RECENT ACCOUNTING PRONOUNCEMENTS

In  March  2000,  the  Financial   Accounting   Standards  Board  (FASB)  issued
Interpretation  No. 44,  "Accounting  for Certain  Transactions  Involving Stock
Compensation,  an  Interpretation  of APB Opinion  No.  25." The  interpretation
clarifies   certain  issues  with  respect  to  the  application  of  Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" (APB
Opinion  No.  25).  The  interpretation  results  in a number of  changes in the
application of APB Opinion No. 25, including the accounting for modifications to
equity awards,  as well as extending APB Opinion No. 25 accounting  treatment to
options  granted to outside  directors  for their  services  as  directors.  The
provisions  of  the  interpretation  were  effective  July  1,  2000  and  apply
prospectively,  except for  certain  modifications  to equity  awards made after
December 15, 1998. The initial adoption did not have a significant impact on the
Company's financial statements.

In June 2000, the FASB issued Statement of Financial Accounting Standards (SFAS)
No. 138,  "Accounting  for Certain  Derivative  Instruments  and Certain Hedging
Activities, an Amendment to FASB Statement No. 133." SFAS No. 138 amends certain
aspects of SFAS No. 133 to simplify the  accounting for  derivatives  and hedges
under SFAS No. 133.  SFAS No. 138 is effective  upon the  company's  adoption of
SFAS No. 133  (January  1, 2001).  The  initial  adoption of SFAS No. 138 is not
expected to have a material impact on the Company's financial statements.

                                       8
<PAGE>


FIRST SENTINEL BANCORP, INC.

Item 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

GENERAL.

Statements   contained  in  this  report  that  are  not  historical   fact  are
forward-looking  statements,  as that term is defined in the Private  Securities
Litigation  Reform  Act  of  1995.  Such  statements  may  be  characterized  as
management's  intentions,  hopes,  beliefs,  expectations  or predictions of the
future. It is important to note that such forward-looking statements are subject
to risks and uncertainties  that could cause actual results to differ materially
from those  projected  in such  forward-looking  statements.  Factors that could
cause future results to vary materially from current  expectations  include, but
are not limited to, changes in interest rates,  competition by larger  financial
institutions,  deposit and loan growth, changes in the quality or composition of
the Company's loan and investment portfolios,  changes in accounting principles,
policies or  guidelines,  legislative  and  regulatory  changes,  changes in the
economy generally and changes in business conditions in the New Jersey market.

ASSETS.  Total  assets  grew to $2.0  billion at June 30,  2000,  reflecting  an
increase of $98.6 million,  or 5.2% from December 31, 1999. The change in assets
consisted  primarily of increases in loans receivable and investment  securities
available for sale, offset by decreases in  mortgage-backed  securities  ("MBS")
available for sale and cash and cash equivalents.

Net loans  increased  $110.8  million,  or 10.9%, to $1.1 billion as of June 30,
2000, from $1.0 billion at December 31, 1999.  Total loan  originations  for the
six months  ended June 30,  2000,  were  $176.3  million,  as compared to $181.3
million  for the same  period  in  1999.  Adjustable-rate,  single-family  first
mortgage loans totaled $74.7 million, or 42.4% of production,  while fixed-rate,
single-family  first mortgage loan originations  accounted for $11.8 million, or
6.7% of total  originations  for the first six months of 2000.  Also  during the
first six months of 2000,  construction  lending totaled $33.9 million, or 19.2%
of total originations, while commercial real estate, commercial and multi-family
loan  originations  totaled  $24.9  million,  or 14.1%.  During the same period,
consumer  loan  originations,  including  home  equity  loans and credit  lines,
totaled $31.0 million, or 17.6% of total originations.  In addition, the Company
purchased $33.6 million of  adjustable-rate,  single-family first mortgage loans
through  correspondents  during the six months  ended June 30,  2000.  Purchased
loans are  re-underwritten by the Bank and are extended under the same terms and
conditions  as the Bank's  direct loan  originations.  Repayment of principal on
loans  totaled $97.4 million for the six months ended June 30, 2000, as compared
to $137.2  million for the same period in 1999.  Management  has  emphasized the
origination  of loans in an effort to increase  loans as a percentage of assets.
While  management  intends to continue to actively seek to originate  loans, the
future  levels  of  loan  originations  and  repayments  will  be  significantly
influenced by external  interest rates and other economic factors outside of the
control of the Company.

Investment  securities  available for sale increased $28.3 million, or 13.2%, to
$241.8 million as of June 30, 2000 from $213.6 million at December 31, 1999. For
the six months ended June 30, 2000, purchases of investment securities available
for sale totaled $48.1 million,  while sales, calls and maturities totaled $18.6
million.  Purchases  during the period  consisted  primarily of debt  securities
issued by U.S.  corporations and  government-sponsored  agencies. In addition, a
market value  decrease of $1.4 million  resulted from the change in the value of
the investment securities portfolio as interest rates rose through the first six
months of 2000.

Mortgage-backed  securities  ("MBS") available for sale decreased $33.3 million,
or 5.8%, to $541.8 million at June 30, 2000, from $575.2 million at December 31,
1999. The decrease was primarily due to sales and principal  repayments of $73.4
million and $47.9 million,  respectively,  exceeding  purchases of $94.0 million
for the six month period ended June 30, 2000.  Net proceeds were used  primarily
to fund loan growth and repurchase the Company's  common stock.  In addition,  a
market value  decrease of $5.3 million  resulted from the change in the value of
the MBS portfolio as interest rates rose through the first six months of 2000.

                                       9
<PAGE>


Cash and cash  equivalents  decreased  $10.2  million from  December 31, 1999 to
$20.5 million at June 30, 2000, as liquidity requirements related to the century
date change were satisfied.

LIABILITIES. Total deposits increased $11.3 million, or 0.9%, to $1.2 billion at
June 30, 2000. This growth took place primarily in core deposits,  consisting of
checking,  savings and money market accounts. These core deposit categories grew
by $10.6 million to $574.7 million, and accounted for 46.9% of total deposits at
June 30, 2000.

Borrowed funds increased $118.8 million, or 28.2%, to $540.8 million at June 30,
2000,  from $422.0  million at December 31, 1999.  The increased  borrowed funds
were used primarily to fund loan  originations.  Advances by borrowers for taxes
and  insurance  increased  $1.5 million,  or 18.0%,  to $9.9 million at June 30,
2000,  from $8.4 million at December 31, 1999,  primarily due to the increase in
the residential loan portfolio.  Other  liabilities  decreased $6.0 million,  or
37.7%,  to $10.0  million at June 30, 2000,  from $16.0  million at December 31,
1999, primarily due to the payment of a $5.8 million special dividend in January
2000 which was accrued at December 31, 1999.

CAPITAL.  The Company's  stockholders' equity decreased $26.9 million, or 11.0%,
to $217.7  million at June 30, 2000,  from $244.6  million at December 31, 1999.
The primary  reasons for the  decrease  in equity were the  repurchase  of $31.1
million of the Company's  common stock,  the increase in the net unrealized loss
on securities available for sale of $4.5 million, and cash dividends declared of
$4.4  million.  These  decreases  were  partially  offset by net income of $11.5
million for the six months ended June 30, 2000.

The Federal Deposit  Insurance  Corporation  requires that the Bank meet minimum
leverage,  Tier 1 and total risk-based capital  requirements.  At June 30, 2000,
the Bank exceeded all regulatory  capital  requirements,  as follows (dollars in
thousands):

                            Required            Actual               Excess of
                       -----------------   ------------------       Actual over
                                   % of                 % of        Regulatory
                       Amount     Assets    Amount     Assets      Requirements
                       -------    ------   --------    ------         --------
                                          (Dollars in thousands)
                                               (Unaudited)
Leverage Capital       $77,489     4.00%   $181,308     9.36%         $103,819
Risk-based Capital:
Tier 1                  40,597     4.00%    181,308    17.86%          140,711
Total                   81,194     8.00%    193,064    19.02%          111,870

LIQUIDITY  AND CAPITAL  RESOURCES.  The Company's  primary  sources of funds are
deposits;   proceeds  from   principal  and  interest   payments  on  loans  and
mortgage-backed  securities;  sales of  loans,  mortgage-backed  securities  and
investments available for sale; maturities or calls of investment securities and
short-term investments;  and, to an increasing extent, advances from the FHLB-NY
and other borrowed funds.  While maturities and scheduled  amortization of loans
and mortgage-backed  securities are a predictable source of funds,  deposit cash
flows and mortgage prepayments are greatly influenced by general interest rates,
competition, and economic conditions.

The most  significant  sources  of funds for the first six months of 2000 were a
net increase in borrowed funds totaling $118.8 million, and principal repayments
and prepayments of loans and mortgage-backed securities,  totaling $97.4 million
and $47.9 million, respectively.  Other significant sources of funds for the six
months ended June 30, 2000,  were sales of MBS available for sale totaling $73.2
million,  sales and calls of investment  securities  available for sale of $18.6
million, and increased deposits of $11.3 million. If necessary,  the Company has
additional  borrowing  capacity with FHLB-NY,  including an available  overnight
line of  credit  of up to $50.0  million.  At June 30,  2000,  the  Company  had
unpledged  investment  securities and MBS available for sale with a market value
of $315.5 million.

The primary investing activities of the Company for the first six months of 2000
were  the   origination  of  loans  totaling   $176.3   million,   purchases  of
mortgage-backed  securities  available for sale totaling $94.0 million,  and the
purchases of investment  securities  available for sale totaling  $48.1 million.
Other  significant uses of funds during the six months ended June 30, 2000, were
$33.6 million in purchases of mortgage  loans,  $31.1 million in  repurchases of
common stock and $10.2 million in cash dividends paid.

                                       10
<PAGE>


COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2000
AND 1999.

RESULTS OF  OPERATIONS.  Net income for the three and six months  ended June 30,
2000, totaled $5.8 million and $11.5 million,  respectively.  This represented a
decrease of $84,000 and an increase of $41,000, or 1.4% and 0.4%,  respectively,
over net  income of $5.9  million  and $11.5  million  for the  comparable  1999
periods.  For the quarter  ended June 30, 2000,  basic and diluted  earnings per
share were $0.17,  representing  a 17.8% and 19.9%  increase over second quarter
1999 basic and diluted earnings per share of $0.15 and $0.14, respectively.  For
the six months  ended June 30, 2000,  basic and diluted  earnings per share were
$0.33,  representing a 17.5% and 19.2%  increase,  respectively,  over basic and
diluted earnings per share of $0.28 for the first six months of 1999.

Annualized  return on average equity improved to 10.38% and 10.03% for the three
and six months ended June 30, 2000,  respectively,  from 8.00% and 7.80% for the
comparable 1999 periods.  Annualized  return on average assets was 1.18% for the
three and six months ended June 30, 2000,  compared with 1.25% and 1.23% for the
three and six months ended June 30 1999, respectively.

INTEREST  INCOME.  Interest  income for the three and six months  ended June 30,
2000,  increased  by  $3.7  million  and  $6.6  million,  or  12.1%  and  10.9%,
respectively, from the same periods in 1999.

Interest on loans  increased $3.8 million and $6.8 million,  or 22.6% and 20.6%,
respectively,  to $20.5  million and $39.7  million for the three and six months
ended June 30, 2000, as compared to $16.7 million and $32.9 million for the same
periods in 1999.  The average  balance of the loan  portfolio  for the six month
period ended June 30, 2000  increased  to $1.1  billion from $899.5  million for
1999,  while the average yield on the  portfolio  increased to 7.41% for the six
months ended June 30, 2000, from 7.32% for the same period in 1999.

Interest  on  securities  declined  $85,000  and  $171,000,  or 0.6%  and  0.6%,
respectively,  to $13.7  million and $27.3  million for the three and six months
ended June 30, 2000, as compared to $13.8 million and $27.5 million for the same
periods  in 1999.  The  average  balance of the  investment,  FHLB stock and MBS
available for sale portfolios  totaled $857.8 million,  with an annualized yield
of 6.38% for the six  months  ended  June 30,  2000,  compared  with an  average
balance of $918.0  million with an annualized  yield of 5.99% for the six months
ended June 30, 1999.

INTEREST  EXPENSE.  Interest expense increased $3.4 million to $19.3 million for
the three  months ended June 30,  2000,  compared to $15.9  million for the same
period  in 1999.  For the six  months  ended  June 30,  2000,  interest  expense
increased  $5.8  million to $37.6  million,  compared  to $31.8  million for the
comparable 1999 period.

Interest expense on deposits  increased $8,000 and decreased  $722,000,  or 0.1%
and 3.0%, respectively, to $11.9 million and $23.3 million for the three and six
months ended June 30, 2000,  as compared to $11.9  million and $24.0 million for
the same periods in 1999.  Management  continued to  concentrate  its efforts on
increasing  the level of core accounts as a percentage  of overall  deposits and
decreasing reliance on higher-costing  certificate accounts as a funding source.
The increase in the average  balance of NOW and money market  demand and savings
accounts, along with the increase in the average balance of non-interest bearing
deposits,  reflects this  strategy.  The average  balance of these core accounts
totaled  $571.7  million for the six months ended June 30, 2000,  as compared to
$554.7  million  for the  same  period  in 1999.  Within  these  core  accounts,
non-interest  bearing  deposits  averaged $47.9 million for the six months ended
June 30, 2000, up from $42.3 million for the comparable 1999 period. The average
balance of  certificates  of deposit  decreased  to $646.5  million  for the six
months ended June 30, 2000, from $702.6 million for the same period in 1999. The
average interest cost on all deposits for the six months ended June 30, 2000 and
1999 remained at 3.82%, despite a rising rate environment,  as a result of these
favorable shifts in deposit  composition.  The average cost of certificates over
the six month period ended June 30, 2000,  was 5.15%,  as compared to 4.95% over
the same period in 1999.

                                       11
<PAGE>


Interest on  borrowed  funds for the three and six months  ended June 30,  2000,
increased $3.4 million and $6.5 million,  or 84.8% and 82.7%,  respectively,  to
$7.5  million and $14.3  million,  compared to $4.0 million and $7.8 million for
the same  respective  periods in 1999.  The  increase in the average  balance of
borrowed funds for the six months ended June 30, 2000, to $483.1  million,  from
$292.2 million was  attributable  to  management's  continuing  strategy to fund
earning  asset  growth  through the use of borrowed  funds,  where  accretive to
earnings. The average interest rate paid on borrowed funds was 5.92% for the six
months ended June 30, 2000, compared with 5.36% for the same period in 1999.

NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES. Net interest income before
provision for loan losses  increased  $258,000 and  $844,000,  or 1.8% and 3.0%,
respectively,  to $14.8  million and $29.4  million for the three and six months
ended June 30, 2000,  compared to $14.6  million and $28.6  million for the same
periods in 1999.  The  increase  was due to the changes in  interest  income and
interest  expense  described  above.  The interest rate spread was 2.41% for the
three  months ended June 30,  2000,  compared  with 2.47% for the same period in
1999. For the six months ended June 30, 2000, the interest rate spread  declined
two  basis  points  to 2.41%  compared  with the same  period  in 1999.  The net
interest  margin  was 3.05% for the three and six months  ended  June 30,  2000,
compared  with 3.19% and 3.15% for the same  periods in 1999.  The  declines  in
interest rate spread and net interest margin are attributable to rising interest
rates  and  competitive  pressures.  In  addition,  the  use of  funds  for  the
repurchase of the Company's  common stock has further  impacted the net interest
margin.

PROVISION  FOR LOAN LOSSES.  The provision for loan losses for the three and six
months ended June 30, 2000,  decreased  $57,000 and $114,000,  or 12.7% for each
period, to $393,000 and $786,000, compared to $450,000 and $900,000 for the same
periods in 1999.  Provisions  for loan  losses  are made  based on  management's
evaluation of risks  inherent in the loan  portfolio,  giving  consideration  to
on-going  credit  evaluations  and changes in the balance and composition of the
loan portfolio. In management's opinion, the allowance for loan losses, totaling
$11.8 million or 1.03% of total loans at June 30, 2000, adequately addresses the
risks inherent in the portfolio. Management will continue to review the need for
additions to its allowance  for loan losses based upon its  quarterly  review of
the loan portfolio, the level of delinquencies,  and general market and economic
conditions.

The following  table sets forth ratios  regarding  nonaccrual  loans,  and loans
which are 90 days or more  delinquent,  but on which  the  Company  is  accruing
interest at the dates indicated.  The Company discontinues  accruing interest on
delinquent loans when collection of interest is considered  doubtful,  generally
when 90 days or more  delinquent  and when  loan-to-value  ratios exceed 55%, at
which time all accrued but uncollected  interest is reversed.  Total  foreclosed
real estate  ("REO"),  net,  totaled  $215,000 at June 30, 2000 and consisted of
three residential properties, one of which is under contract for sale.

  (dollars in thousands)
                                June 30,  Mar. 31,  Dec. 31,  Sept. 30, June 30,
                                  2000      2000      1999      1999      1999
                                -----------------------------------------------
Non-accrual mortgage loans ...   $2,478    $2,407    $2,311    $2,251    $2,537
Non-accrual other loans ......       45        42        45        82        82
                                -----------------------------------------------
  Total non-accrual loans ....    2,523     2,449     2,356     2,333     2,619
Loans 90 days or more
  delinquent and
  still accruing .............      263       410       326       320       224
Restructured loans ...........       --        --        --        --        --
                                -----------------------------------------------
Total non-performing loans ...    2,786     2,859     2,682     2,653     2,843
Total foreclosed real estate,
  net of related allowance ...      215       344       466     1,193     1,422
                                -----------------------------------------------
Total non-performing assets ..   $3,001    $3,203    $3,148    $3,846    $4,265
                                ===============================================
Non-performing loans to loans
  receivable, net ............     0.24%     0.27%     0.26%     0.27%     0.32%
Non-performing assets to
  total assets ...............     0.15%     0.16%     0.17%     0.20%     0.23%

NON-INTEREST  INCOME.  Non-interest  income  decreased  $302,000,  or 30.1%,  to
$701,000 for the three months ended June 30, 2000,  compared to $1.0 million for
the same period in 1999.  For the six months ended June 30,  2000,  non-interest
income  totaled $1.4  million,  a decrease of  $611,000,  or 29.8% from the same
period in 1999.  The decrease was primarily  attributable  to losses on sales of
loans and securities  totaling  $78,000 and $97,000 for the three and six months
ended June 30, 2000, respectively,  compared

                                       12
<PAGE>


with gains of $318,000 and $577,000 for the respective  1999 periods.  The sales
of loans and  securities  and related  gains or losses are  dependent  on market
conditions, as well as the Company's liquidity and risk management requirements.

NON-INTEREST  EXPENSE.  Non-interest  expense for the three and six months ended
June 30,  2000,  decreased  $53,000 and  increased  $219,000,  or 0.8% and 1.8%,
respectively,  to $6.3 million and $12.6  million,  compared to $6.3 million and
$12.4 million for the same periods in 1999.

Within this category, compensation and benefits increased $169,000 and $480,000,
or 4.9% and 7.1%,  respectively,  to $3.6 million and $7.3 million for the three
and six months  ended June 30,  2000.  Included  in  compensation  and  benefits
expense was a non-recurring  charge of $177,000 incurred  following the death of
one of the Company's directors during the second quarter of 2000.

Advertising  expense  increased  $52,000  and  $132,000,  or  14.7%  and  21.9%,
respectively,  to $405,000  and $735,000 for the three and six months ended June
30, 2000,  compared to $353,000 and $603,000 for the same periods in 1999 as the
Company continued to aggressively pursue market share growth.

Equipment  expense  for the three and six months  ended June 30,  2000,  totaled
$438,000 and  $862,000,  an increase of $60,000 and $67,000,  or 15.9% and 8.4%,
respectively,  as the  Company  commenced  upgrades  to  computer  hardware  and
software in the  branches.  The Company is  undertaking  a project to facilitate
teller/platform automation,  including document preparation and online signature
verification.   These  upgrades  are  intended  to  enhance  customer   service,
streamline  the  account  opening  process,  reduce  printing  costs and provide
improved security and research capabilities. The Company anticipates the cost of
such  upgrades  will  approximate  $1.5  million,  to be  amortized  over  their
estimated useful lives.

Federal deposit insurance premiums decreased $126,000 and $257,000, or 66.0% and
66.2%, respectively,  to $65,000 and $131,000 for the three and six months ended
June 30, 2000, as a result of a reduction in the assessment rate.

General and administrative  expenses  decreased $223,000 and $284,000,  or 19.0%
and 12.5%,  respectively,  to  $948,000  and $2.0  million for the three and six
months ended June 30, 2000,  primarily due to a reduction in supervisory charges
realized as a result of the Bank's conversion to a state-chartered  savings bank
in January 2000.

As a measure  of the  Company's  non-interest  expense  control,  the  Company's
annualized non-interest expense, excluding amortization of intangibles,  divided
by average assets improved to 1.23% and 1.25% for the three and six months ended
June 30,  2000,  compared to 1.30% and 1.28% for the three and six months  ended
June 30, 1999.  The  Company's  efficiency  ratio,  calculated  as  non-interest
expense  divided by the sum of net  interest  income plus  non-interest  income,
excluding gains on the sale of loans and securities, improved to 40.1% and 40.6%
for the three and six months ended June 30, 2000,  respectively,  compared  with
41.3% and 41.1% for the comparable 1999 periods.

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

There  have  been  no  material  changes  to  information   required   regarding
quantitative and qualitative  disclosures  about market risk from the end of the
preceding  fiscal  year  to  the  date  of the  most  recent  interim  financial
statements (June 30, 2000).

                                       13
<PAGE>


                           PART II. OTHER INFORMATION

Item 1.   LEGAL PROCEEDINGS.

          There are  various  claims and  lawsuits  in which the  Registrant  is
          periodically involved incidental to the Registrant's  business. In the
          opinion of  management,  no material loss is expected from any of such
          pending claims and lawsuits.

Item 2.   CHANGES IN SECURITIES.

          None.

Item 3.   DEFAULTS UPON SENIOR SECURITIES.

          Not applicable.

Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

          None.

Item 5.   OTHER INFORMATION.

          None.

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K.

          a.)  Exhibits

--------------------------------------------------------------------------------
 Exhibit
  Number                         Description                           Reference
--------------------------------------------------------------------------------
   3.1    Certificate of Incorporation of First Sentinel Bancorp, Inc.     *

   3.2    Bylaws of First Sentinel Bancorp, Inc.                           *

   4      Stock certificate of First Sentinel Bancorp, Inc.                *

   11     Statement re: Computation of Ratios                            page 7

   27     Financial Data Schedule                                       attached

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

          b.)  Reports on Form 8-K

               The Company filed a Current Report on Form 8-K dated May 23,
               2000, under Item 5, Other Events, pertaining to the appointment
               of Philip T. Ruegger, Jr. as the new Chairman of the Board of
               Directors.

* Incorporated herein by reference into this document from the Registration
Statement on Form S-1 and exhibits thereto of First Sentinel Bancorp, Inc.
(formerly First Source Bancorp, Inc.), and any amendments or supplements thereto
filed with the SEC on December 19, 1997 and amended on February 9, 1998, SEC
File No. 333-42757.

                                       14
<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.

                        FIRST SENTINEL BANCORP, INC.


Date:  August 11, 2000          By: JOHN P. MULKERIN
                                    ----------------

                                John P. Mulkerin
                                President and Chief Executive Officer


Date:  August 11, 2000          By: CHRISTOPHER MARTIN
                                    ------------------
                                Christopher Martin
                                Executive Vice President and Chief Operating and
                                Financial Officer and Corporate Secretary

                                       15