<PAGE>
<PAGE>
        U.S. SECURITIES AND EXCHANGE COMMISSION
                Washington, D.C.  20549


                      FORM 10-QSB

(Mark One)

[X]  Quarterly Report under Section 13 or 15(d) of the
     Securities Exchange Act of 1934

     For the quarterly period ended March 31, 1999

[ ]  Transition Report under Section 13 or 15(d) of the
     Exchange Act

     For the transition period from ______ to ______

         Commission File Number:  0-24589

                  BCSB BANKCORP, INC.
---------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its
Charter)


     UNITED STATES                            52-2108333
-------------------------------          --------------------
(State or Other Jurisdiction of          (I.R.S. Employer  
 Incorporation or Organization)          Identification No.)


4111 E. JOPPA ROAD, SUITE 300, BALTIMORE, MARYLAND  21236
---------------------------------------------------------
       (Address of Principal Executive Offices)

                    (410) 256-5000
    -----------------------------------------------
    (Issuer's Telephone Number, Including Area Code)


                          N/A
---------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)

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

     As of May 14, 1999, the issuer had 6,116,562 shares of
Common Stock issued and outstanding.

Traditional Small Business Disclosure Format (check one):
Yes     No X  
   ---    ---



<PAGE>
<PAGE>
                       CONTENTS

                                                           PAGE
                                                           ----
PART I.  FINANCIAL INFORMATION
         ---------------------

Item 1.  Financial Statements

         Consolidated Statements of Financial Condition 
            as of March 31, 1999(unaudited) and 
            September 30, 1998 . . . . . . . . . . . . . . . .2

        Consolidated Statements of Operations for the 
            Six Months and Three Months Ended March 31,
            1999 and 1998 (unaudited). . . . . . . . . . . . .3

        Consolidated Statements of Cash Flows for the 
            Six Months Ended March 31, 1999 and 1998    
            (unaudited) . . . . . . . . . . . . . . . . . . . 4

        Notes to Consolidated Financial Statements. . . . . . 7

Item 2.  Management's Discussion and Analysis or Plan 
           of Operation . . . . . . . . . . . . . . . . . . . 9


PART II. OTHER INFORMATION
         -----------------

Item 1.  Legal Proceedings. . . . . . . . . . . . . . . . . .16

Item 2.  Changes in Securities and Use of Proceeds. . . . . .16

Item 3.  Defaults Upon Senior Securities. . . . . . . . . . .16

Item 4.  Submission of Matters to a Vote of Security 
           Holders. . . . . . . . . . . . . . . . . . . . . .16

Item 5.  Other Information. . . . . . . . . . . . . . . . . .16

Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . . .17


SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . .18

























                           1
<PAGE>
            BCSB BANKCORP, INC. AND SUBSIDIARIES
            ------------------------------------
                  BALTIMORE, MARYLAND

    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    ----------------------------------------------
<TABLE>
<CAPTION>
                                                MARCH 31,   SEPTEMBER 30,
                                                  1999            1998 
                                               ----------     ------------     
                                              (Unaudited)
                  Assets
                  ------
<S>                                           <C>             <C>
Cash                                           $  2,789,304    $  3,572,309
Interest bearing deposits in other banks         17,476,517      20,299,970
Federal funds sold                                8,813,645       9,134,202
Investment securities, held to maturity          28,236,538      12,610,823
Loans receivable, net                           190,953,395     181,969,226
Mortgage backed securities, held to maturity     26,032,256      34,197,844
Foreclosed real estate, net                         292,910         370,690
Investment in real estate development and 
  loans to joint venture                              5,972           8,195
Premises and equipment, net                       3,256,036       2,988,558
Federal Home Loan Bank of Atlanta stock           1,650,300       1,511,900
Accrued interest receivable  - loans                672,050         725,065
                             - investments          482,577         528,231
                             - mortgage backed 
                                 securities         154,245         196,136
Prepaid income taxes                                239,388         175,870
Intangible assets acquired, net                       8,915          24,497
Other assets                                        781,631         526,733
                                               ------------    ------------
Total assets                                   $281,845,679    $268,840,249    
                                               ============    ============
     
      Liabilities and Stockholders' Equity
      ------------------------------------

Liabilities
-----------
  Deposits                                     $231,043,131    $220,804,724
  Advance payments by borrowers for taxes 
    and insurance                                 2,492,238         850,397
  Income taxes payable                               59,477          60,792
  Deferred income taxes                              71,282         143,929
  Payables to disbursing agents                     230,994         249,430
  Dividends payable                                 295,201              --
  Other liabilities                               1,876,760       1,587,929
                                               ------------    ------------
Total liabilities                               236,069,083     223,697,201

Commitments and contingencies

Stockholders' Equity
--------------------
  Common stock (Par value $.01 - 13,500,000 
    authorized, 6,116,562 shares issued 
    and outstanding)                                 61,166          61,166
  Additional paid-in capital                     22,694,846      22,645,088
  Retained earnings (substantially restricted)   25,518,708      25,221,308
                                               ------------    ------------
                                                 48,274,720      47,927,562
  Employee Stock Ownership Plan                  (1,600,620)     (1,829,280)
  Stock held by Rabbi Trust                        (897,504)       (955,234)
                                               ------------    ------------
                                                 45,776,596      45,143,048
                                               ------------    ------------
Total liabilities and retained earnings        $281,845,679    $268,840,249
                                               ============    ============
</TABLE>
The accompanying notes to the consolidated financial statements 
are an integral part of these statements.
                              2<PAGE>
<PAGE>
                 BCSB BANKCORP, INC. AND SUBSIDIARIES
                 ------------------------------------
                          BALTIMORE, MARYLAND

          CONSOLIDATED STATEMENTS OF OPERATIONS (OPERATIONS)
          -------------------------------------------------
<TABLE>
<CAPTION>

                                                FOR SIX MONTHS ENDED    FOR THREE MONTHS ENDED  
                                                       MARCH  31,             MARCH 31,    
                                                --------------------    ----------------------
                                                  1999        1998        1999          1998
                                                -------     --------    --------      -------- 
<S>                                             <C>         <C>         <C>           <C>
Interest Income
---------------
  Interest and fees on loans                    $7,153,165   $6,606,209  $3,582,043   $3,278,050
  Interest on mortgage backed securities           950,861    1,170,762     439,818      574,050
  Interest and dividends on investment 
     securities                                    565,386      742,402     369,516      355,990
  Other interest income                            894,142      691,597     393,719      361,462
                                                ----------   ----------  ----------   ----------
Total interest income                            9,563,554    9,210,970   4,785,096    4,569,552

Interest Expense
----------------
  Interest on deposits                           4,854,149    4,884,412   2,413,723    2,435,289
  Interest on borrowings - short term                3,539        4,065       2,026        2,476
                                                ----------   ----------  ----------   ----------
Total interest expense                           4,857,688    4,888,477   2,415,749    2,437,765
                                                ----------   ----------  ----------   ----------

  Net interest income                            4,705,866    4,322,493   2,369,347    2,131,787
  Provision (reduction of provision) for 
    losses on loans                                232,361      (39,274)     37,774      (75,524)
                                                ----------   ----------  ----------   ----------
  Net interest income after provision 
    (reduction of provision) for losses 
    on loans                                     4,473,505    4,361,767   2,331,573    2,207,311

Other Income (Loss)
-------------------
  Gain (loss) on sale of foreclosed real estate      1,007      (17,111)    (41,071)     (15,162)
  Servicing fee income                                 281        5,852         136        1,961
  Fees and charges on loans                         77,591      101,544      39,301       57,569
  Fees on transaction accounts                      89,292       78,642      40,162       37,173
  Rental income                                     63,860       62,655      28,831       40,807
  Gain from real estate development and joint 
    venture                                          6,038           --          --           --
  Gain on sale of branch deposits                       --      339,000          --           --
  Miscellaneous income                              33,341       55,016      13,403       19,796
                                                ----------   ----------  ----------   ----------
Net other income (loss)                            271,410      625,598      80,762      142,144

Non-Interest Expenses
---------------------
  Salaries and related expense                   2,159,087    1,627,761   1,026,132      694,431
  Provision for losses on foreclosed 
    real estate                                         --           --          --      (13,236)
  Occupancy expense                                340,685      242,859     167,771      125,244
  Deposit insurance premiums                        68,943      107,132      26,584       52,710
  Data processing expense                          264,849      216,408     161,661      115,344
  Property and equipment expense                   248,283      178,182     129,402       89,289
  Professional fees                                112,829       59,882      32,912       30,987
  Advertising                                      200,916      138,580      96,223       59,727
  Telephone, postage and office supplies           166,753      153,446      85,569       83,682
  Amortization of excess of cost over 
    fair value of net assets acquired               13,356       13,379       6,678        6,701
  Other expenses                                   194,213      160,965     109,859       99,492
                                                ----------   ----------  ----------   ----------
Total non-interest expenses                      3,769,914    2,898,594   1,842,791    1,344,371
                                                ----------   ----------  ----------   ----------

Income before tax provision                        975,001    2,088,771     569,544    1,005,084
Income tax provision                               382,400      825,042     221,708      398,668
                                                ----------   ----------  ----------   ----------
Net income                                      $  592,601   $1,263,729  $  347,836   $  606,416
                                                ==========   ==========  ==========   ==========

Basic and diluted earnings per share            $     0.10               $     0.06
                                                ==========               ==========   
</TABLE>
 

The accompanying notes to the consolidated financial statements
are an integral part of these statements.
                             3<PAGE>
<PAGE>
                BCSB BANKCORP, INC. AND SUBSIDIARIES
                ------------------------------------
                        BALTIMORE, MARYLAND

          CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
          -------------------------------------------------

<TABLE>
<CAPTION>
                                              FOR SIX MONTHS ENDED 
                                                    MARCH 31,
                                              ----------------------
                                               1999            1998   
                                              ------          ------
<S>                                           <C>            <C>
Operating Activities
--------------------
   Net Income                                 $ 592,778       $1,263,729
  Adjustments to Reconcile Net Income to Net
  Cash Provided by Operating Activities
  -------------------------------------
    Accretion of discount on investments          2,104           30,467
    Loans originated for sale                        --         (133,000)
    Proceeds from loans originated for sale          --          133,000
    Loan fees (costs) deferred, net              (2,235)          54,341
    Amortization of deferred loan fees 
     (costs), net                              (137,608)       (170,190)
    Provision (reduction of provision) for 
     losses on loans                            232,361         (39,274)
    Non-cash compensation under Stock-Based 
     Benefit Plans                               66,745              --
    Amortization of premium on mortgage 
     backed securities                           20,880          14,851
    (Gain) loss on sale of foreclosed real 
     estate                                     (1,007)          17,111
    Gain from real estate development and 
     joint venture                              (6,038)              --
    Provision for depreciation                 180,458          140,011
    Decrease in accrued interest receivable 
     on loans                                   53,015           64,358
    Decrease in accrued interest receivable 
     on investments                             45,654           49,629
    Decrease in accrued interest receivable 
     on mortgage backed securities              41,891           14,458
    Increase (decrease) in prepaid income 
     taxes                                     (63,518)         313,684
    Increase (decrease) in deferred income 
     tax liabilities                           (72,647)          67,758
    Amortization of excess of cost over fair 
     value of net assets acquired               13,356           13,379
    Increase in other assets                  (252,672)        (343,816)
    Gain on sale of branch deposits                 --         (339,000)
    Decrease in accrued interest payable 
     on deposits                               (49,817)        (107,451)
    Increase (decrease) in income taxes 
     payable                                    (1,315)          13,601
    Increase (decrease) in other liabilities 
     and payables to disbursing agents         270,395         (452,590)
                                             ---------        ---------
        Net cash provided by operating 
          activities                           932,780          605,056
</TABLE>
                              4<PAGE>
<PAGE>
                   BCSB BANKCORP, INC. AND SUBSIDIARIES
                   ------------------------------------
                             BALTIMORE, MARYLAND

              CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
              -------------------------------------------------
<TABLE>
<CAPTION>
                                              FOR SIX MONTHS ENDED 
                                                    MARCH 31,
                                              ----------------------
                                               1999            1998   
                                              ------          ------
<S>                                           <C>            <C>
Cash Flows from Investing Activities
------------------------------------
  Proceeds from maturing interest bearing 
    deposits                                  $   2,252,000   $  1,091,000
  Purchase of interest bearing deposits         (10,444,000)    (5,000,000)
  Purchases of investment securities - held 
    to maturity                                 (25,053,819)   (13,500,000)
  Proceeds from maturities of investment 
    securities - held to maturity                 9,426,000     26,542,824
  Longer term loans originated                  (20,290,340)   (16,744,333)
  Principal collected on longer term loans       15,819,806     12,264,496
  Net (increase) decrease in short-term loans    (4,783,360)     2,852,416
  Principal collected on mortgage backed 
    securities                                    8,626,673      5,429,611
  Purchase of mortgage backed securities           (481,965)    (4,866,615)
  Proceeds from sales of foreclosed real estate     230,019          2,000
  Net investment and loans to joint venture              --          5,362
  Proceeds from joint venture                         8,261             --
  Investment in premises and equipment             (447,936)       (37,015)
  Purchase of Federal Home Loan Bank of Atlanta 
    stock                                          (138,400)       (78,700)
                                               ------------   ------------
        Net cash provided (used) by investing 
          activities                            (25,277,061)     7,961,046

Cash Flows from Financing Activities
------------------------------------
  Proceeds from sale of branch deposits                  --     (5,827,235)
  Net increase in demand deposits, money 
    market, passbook accounts and advances 
    by borrowers for taxes and insurance          5,047,322      5,545,458
  Net increase in certificates of deposit         6,882,743      2,398,332
  Dividends declared on stock                       295,201             --
                                               ------------   ------------
        Net cash provided by financing 
          activities                             12,225,266      2,116,555
                                               ------------   ------------

Increase (decrease) in cash and cash 
  equivalents                                   (12,119,015)    10,682,657
Cash and cash equivalents at beginning 
  of period                                      31,074,481     12,136,626
                                               ------------   ------------
Cash and cash equivalents at end of period     $ 18,955,466   $ 22,819,283
                                               ============   ============
</TABLE>
                             5<PAGE>
<PAGE>
                   BCSB BANKCORP, INC. AND SUBSIDIARIES
                   ------------------------------------
                             BALTIMORE, MARYLAND

              CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
              -------------------------------------------------
<TABLE>
<CAPTION>
                                              FOR SIX MONTHS ENDED 
                                                     MARCH 31,
                                              ----------------------
                                               1999            1998   
                                              ------          ------
<S>                                           <C>            <C>
The following is a summary of cash and 
  cash equivalents:
    Cash                                       $  2,789,304  $  3,950,017
    Interest bearing deposits in other banks     17,476,517    21,200,882
    Federal funds sold                            8,813,645     8,658,384
                                               ------------  ------------
    Balance of cash items reflected on 
      Statement of Financial Condition           29,079,466    33,809,283

        Less - certificate of deposit with 
          a maturity of more than three months  (10,124,000)  (10,990,000)
                                               ------------  ------------
Cash and cash equivalents reflected on the 
    Statement of Cash Flows                    $ 18,955,466  $ 22,819,283
                                               ============  ============

Supplemental Disclosures of Cash Flows 
  Information:
    Cash paid during the period for:

    Interest                                   $  4,988,332  $  4,991,863
                                               ============  ============
    Income taxes                               $    486,435  $    430,000
                                               ============  ============
Transfer from loans to real estate 
  acquired through foreclosure                 $    151,232  $    132,359
                                               ============  ============
</TABLE>

The accompanying notes to the consolidated financial statements
are an integral part of these statements.
                             6<PAGE>
<PAGE>
                 BCSB BANKCORP, INC. AND SUBSIDIARIES
                 ------------------------------------
                          BALTIMORE, MARYLAND

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
        ------------------------------------------------------

Note 1 - Principal of Consolidation
         --------------------------
         BCSB Bankcorp, Inc. (the "Company") owns 100% of
         Baltimore County Savings Bank, F.S.B. and subsidiaries
         (the "Bank") and also invests in federal funds sold,
         interest-bearing deposits in other banks and U.S.
         Agency bonds.  The Bank owns 100% of Baltimore County
         Service Corporation and Ebenezer Road, Inc.  The
         accompanying consolidated financial statements include
         the accounts and transactions of these companies on a
         consolidated basis since the date of acquisition.  All
         intercompany transactions have been eliminated in the
         consolidated financial statements.  Ebenezer Road, Inc.
         sells insurance products.  Baltimore County Service
         Corporation has invested in several joint ventures
         formed for the purpose of developing real estate. 
         These investments have been accounted for on the equity
         method and separate summary statements are not
         presented since the data contained therein is not
         material in relation to the consolidated financial
         statements.

Note 2 - Basis for Financial Statement Presentation
         ------------------------------------------

         The accompanying consolidated financial statements have
         been prepared in accordance with generally accepted
         accounting principles and the instructions to Form
         10-QSB.  Accordingly, they do not include all of the
         disclosures required by generally accepted accounting
         principles for complete financial statements.  In the
         opinion of management, all adjustments (none of which
         were other than normal recurring accruals) necessary
         for a fair presentation of the financial position and
         results of operations for the periods presented have
         been included.  The financial statements of the Company
         are presented on a consolidated basis with those of the
         Bank. The results for the three months and six months
         ended March 31, 1999 are not necessarily indicative of
         the results of operations that may be expected for the
         year ended September 30, 1999.  The consolidated
         financial statements should be read in conjunction with
         the consolidated financial statements and related notes
         which are incorporated by reference in the Company's
         Annual Report on Form 10-KSB for the year ended
         September 30, 1998.

Note 3 - Cash Flow Presentation
         ----------------------

         For purposes of the statements of cash flows, cash and
         cash equivalents include cash and amounts due from
         depository institutions, investments in federal funds,
         and certificates of deposit with maturities of 90 days
         or less.

Note 4 - Earnings Per Share
         ------------------

         Basic per share amounts are based on the weighted
         average shares of common stock outstanding.  Diluted
         earnings per share assume the conversion, exercise or
         issuance of all potential common stock instruments such
         as options, warrants and convertible securities, unless
         the effect is to reduce a loss or increase earnings per
         share.  No adjustments were made to net income
         (numerator) for all periods presented.  Earnings per
         share data is not presented for the three month and six
         month periods ended March 31, 1998, since the Bank
         converted to the stock form in July 1998, and such
         information would not be meaningful.  The basic and
         diluted weighted average shares outstanding for the
         three months and six months ended March 31, 1999 is as
         follows:

                                7<PAGE>
<PAGE>
         BCSB BANKCORP, INC. AND SUBSIDIARIES
         ------------------------------------
                  BALTIMORE, MARYLAND
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
------------------------------------------------------

Note 4 -  Earnings Per Share (Continued)
          ------------------
<TABLE>
<CAPTION>
                                    For the Six Months Ended March 31, 1999
                                   -----------------------------------------
                                     Income          Shares        Per Share
     Basic EPS                     (Numerator)     (Denominator)     Amount
     ---------                     -----------     -------------   ---------
     <S>                           <C>              <C>            <C>

     Income available to 
       shareholders                $592,601         5,862,272      $ 0.10

     Effect of dilutive shares           --            88,859          --
                                   --------         ---------      ------
     Diluted EPS
     -----------
     Income available to common 
       stockholders plus assumed 
       conversions                 $592,601         5,951,131      $ 0.10
                                   ========         =========      ======
<CAPTION>
                                    For the Three Months Ended March 31, 1999
                                   -----------------------------------------
                                     Income          Shares        Per Share
     Basic EPS                     (Numerator)     (Denominator)     Amount
     ---------                     -----------     -------------   ---------
     <S>                           <C>              <C>            <C>

     Income available to 
       shareholders                $347,836         5,864,592      $ 0.06

     Effect of dilutive shares           --            88,859          --
                                   --------         ---------      ------
     Diluted EPS
     -----------
     Income available to common 
       stockholders plus assumed 
       conversions                 $347,836         5,953,451      $ 0.06
                                   ========         =========      ======
</TABLE>
Note 5 - Regulatory Capital
         ------------------

     The following table sets forth the Bank's capital position at March 31,
1999.
<TABLE>
<CAPTION>

                                                                              To Be Well
                                                                            Capitalized Under
                                                      For Capital            Prompt Corrective
                                   Actual          Adequacy Purposes        Action Provision
                            ------------------   --------------------       ------------------
                                        % of                    % of                    % of
                            Amount      Assets   Amount         Assets      Amount      Assets
                            ------      ------   ------         ------      ------      ------
<S>                         <C>         <C>      <C>            <C>         <C>          <C>
Tangible (1)                $33,554,472 12.30%  $ 4,092,357     1.50%        N/A         N/A
Tier 1 capital (2)           33,554,472 21.30%          N/A      N/A       $ 9,452,955   6.00%
Core (1)                     33,554,472 12.30%    8,184,714     3.00%       13,641,191   5.00%
Risk-weighted (2)            34,792,551 22.08%   12,603,940     8.00%       15,754,925  10.00%
<FN>
____________
(1)  To adjusted total assets.
(2)  To risk-weighted assets.
</FN>
</TABLE>
                             8<PAGE>
<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
          OPERATION 

GENERAL

     The Company was formed in June 1998 by the Bank to become
the holding company of the Bank following the Bank's
reorganization to the mutual holding company form of
organization (the "Reorganization").  The Reorganization was
consummated on July 8, 1998.  All references to the Company
prior to July 8, 1998, except where otherwise indicated, are to
the Bank. 

     The Company's net income is dependent primarily on its net
interest income, which is the difference between interest income
earned on its loan, investment securities and mortgage-backed
securities portfolio and interest paid on interest-bearing
liabilities.  Net interest income is determined by (i) the
difference between yields earned on interest-earning assets and
rates paid on interest-bearing liabilities ("interest rate
spread") and (ii) the relative amounts of interest-earning
assets and interest-bearing liabilities.  The Company's interest
rate spread is affected by regulatory, economic and competitive
factors that influence interest rates, loan demand and deposit
flows.  To a lesser extent, the Company's net income also is
affected by the level of other income, which primarily consists
of fees and charges, and levels of non-interest expenses such as
salaries and related expenses.

     The operations of the Company are significantly affected by
prevailing economic conditions, competition and the monetary,
fiscal and regulatory policies of governmental agencies. 
Lending activities are influenced by the demand for and supply
of housing, competition among lenders, the level of interest
rates and the availability of funds.  Deposit flows and costs of
funds are influenced by prevailing market rates of interest,
primarily on competing investments, account maturities and the
levels of personal income and savings in the Company's market
area.

FORWARD-LOOKING STATEMENTS

     When used in this Form 10-QSB, the words or phrases "will
likely result," "are expected to," "will continue," "is
anticipated," "estimate," "project" or similar expressions are
intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. 
Such statements are subject to certain risks and uncertainties
including changes in economic conditions in the Company's market
area, changes in policies by regulatory agencies, fluctuations
in interest rates, demand for loans in the Company's market
area, and competition that could cause actual results to differ
materially from historical earnings and those presently
anticipated or projected.  The Company wishes to caution readers
not to place undue reliance on any such forward-looking
statements, which speak only as of the date made.  The Company
wishes to advise readers that the factors listed above could
affect the Company's financial performance and could cause the
Company's actual results for future periods to differ materially
from any opinions or statements expressed with respect to future
periods in any current statements.

     The Company does not undertake, and specifically disclaims
any obligation, to publicly release the result of any revisions
which may be made to any forward-looking statements to reflect
events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.

YEAR 2000 READINESS DISCLOSURE

     The following information constitutes "Year 2000 Readiness
Disclosure" under the Year 2000 Information and Readiness
Disclosure Act.  

     The Company's operations, like those of most financial
institutions, are substantially dependent upon computer systems
for lending and deposit activities.  The Company is addressing
the potential problems associated with the possibility that the
computers which control its data processing activities, 
facilities and networks may not be programmed to read four-digit
dates and, upon the arrival of the year 2000, may recognize the
two-digit code "00" as the year 1900 rather than 2000.  This
could cause systems to fail to function or generate erroneous
information. 

                              9<PAGE>
<PAGE>
     The Company has formed a Year 2000 Committee with senior
representatives from every functional area of the Company.  At
the direction of the Board, this Committee is leading the
efforts to ensure that the Company is ready for the Year 2000. 
The Board of Directors has approved the Company's five phase
Year 2000 Plan that was developed in accordance with the
guidelines set forth by the Federal Financial Institutions
Examination Council.

     The first phase, awareness, was intended to provide
on-going information to employees, directors and customers of
the impact of the Year 2000 issue.  The Company has conducted
Year 2000 training for all directors and employees.

     The second phase, assessment, required the review of all
systems that are believed to be potential risks in order to
minimize any Year 2000 operating difficulties.  This review
included all major computer and non-computer based systems, such
as vaults, security systems and telephone systems.  This phase
is complete.

     The third phase, renovation and/or replacement, includes
obtaining vendor certification and/or the necessary upgrades and
enhancements to ensure that existing systems are Year 2000
compliant.  The Company is continuing to follow up with third
party vendors as necessary.  At this time the Company believes
that all mission critical systems are compliant.

     The fourth phase, testing, is currently underway.  The
hardware has been successfully tested, and the Company has begun
testing the software.  The Company has received representations
from mission critical third party vendors that they are Year
2000 compliant.  All mission critical testing has been
completed. 

     The last phase, implementation, has commenced and is
expected to be completed in the third quarter of calendar year
1999.  The Company has developed contingency plans for processes
that are not yet Year 2000 compliant.  This plan is updated as
test results are obtained.  The contingency plan sets forth the
procedures that would allow the Company to conduct operations in
the event of one or more system failures, should such a failure
occur notwithstanding prior assurance from third party vendors.

     The Company estimates that the total future cost of Year
2000 compliance, excluding internal staffing costs, will not
exceed $75,000.  The Company believes that its policies, plans
and actions are in compliance with regulatory guidelines and
milestone dates. 

     The Bank's customers may also experience Year 2000
problems, which could adversely affect their ability to comply
with their obligations to the Bank.  Management does not believe
that the failure of any single customer to be Year 2000
compliant would materially adversely affect the Company's
financial conditions or results of operations.

     The Company believes that the potential effects on internal
operations from Year 2000 issues can and will be addressed prior
to the Year 2000.  However, as unforeseen circumstances arise,
the Year 2000 issue could disrupt the Company's  normal business
operations.  The most reasonably likely worst case Year 2000
scenarios foreseeable at this time would include the inability
to systematically process, in some combination, various types of
customer transactions.  This could affect the Company's ability
to accept deposits or process withdrawals, originate new loans
or accept loan payments in the automated manner currently
utilized.  Depending upon how long this scenario lasted, this
could have a material adverse effect on the Company's
operations.  The contingency plan addresses alternative methods
to enable the Company to continue to offer basic services to the
Company's customers.  The costs of the Year 2000 project and the
benchmark dates are based on management's best estimates, which
are based on a number of assumptions including future events. 
The Company cannot guarantee that these estimates will be
achieved at the cost disclosed or within the time frames
indicated. 
                              10<PAGE>
<PAGE>
COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 1999 AND
SEPTEMBER 30, 1998

     During the six months ended March 31, 1999, the Company's
assets increased by $13.0 million, or 4.8%, from $268.8 million
at September 30, 1998 to $281.8 million at March 31, 1999.  The
Company has sought to increase loans in order to take advantage
of the higher yields on loans compared to investment securities
and mortgage-backed securities.  Accordingly, the Company used
the proceeds from maturing mortgage-backed securities to fund
loan originations.  Loans receivable, net increased by $9.0
million, or 4.9%, from $182.0 million at September 30, 1998 to
$191.0 million at March 31, 1999.  The Company's mortgage-backed
securities decreased by $8.2 million, or 24.0%, from $34.2
million at September 30, 1998 to $26.0 million at March 31,
1999.  The Company's investment securities increased by $15.6
million, or 123.9%, from $12.6 million at September 30, 1998 to
$28.2 million at March 31, 1999 as the Company invested the net
proceeds from its initial public offering.  The Company's
deposits increased by $10.2 million, or 4.6%, from $220.8
million at September 30, 1998 to $231.0 million at March 31,
1999.  The increase in deposits was achieved through increased
advertising and promotion activities.

COMPARISON OF OPERATING RESULTS FOR THE SIX MONTHS ENDED MARCH
31, 1999 AND 1998

     Net Income.  Net income decreased by $671,000, or 53.0%,
from $1.3 million for the six months ended March 31, 1998 to
$593,000 for the six months ended March 31, 1999.  The decrease
in net income was primarily attributable to increased
non-interest expense, increased provisions for losses on loans
and decreased other income, which more than offset an increase
in net interest income.

     Net Interest Income.  Net interest income was $4.7 million
for the six months ended March 31, 1999, compared to $4.3
million for the six months ended March 31, 1998, representing an
increase of $383,000, or 8.9%.   The increase was primarily due
to an increase in the ratio of average interest-earning assets
to average interest-bearing liabilities from 108.12% for the six
months ended March 31, 1998 to 116.74% for the six months ended
March 31, 1999 as a result of the Company's receipt of $22.3
million in net proceeds from its initial public offering
completed on July 8, 1998.  This increase more than offset the
decrease in the interest rate spread from 3.24% for the six
months ended March 31, 1998 to 2.89% for the six months ended
March 31, 1999.  This decrease in the interest rate spread
reflects a decrease in the yield on interest-earning assets as
the net proceeds from the initial public offering were invested
in lower yielding assets such as interest-earnings deposits and
short-term investments.

     Interest Income.  Interest income increased by $353,000, or
3.8%, from $9.2 million for the six months ended March 31, 1998
to $9.6 million for the six months ended March 31, 1999.  This
increase was due primarily to a $547,000, or 8.3%, increase in
interest and fees on loans from $6.6 million for the six months
ended March 31, 1998 to $7.2 million for the six months ended
March 31, 1999.  The increase in interest and fees on loans was
primarily due to a $26.3 million increase in the average balance
of loans receivable.  Additionally, interest on other
interest-earning assets, which consist of interest-bearing
deposits in banks and Federal Funds sold, increased by $203,000,
or 29.3%, from $692,000 for the six months ended March 31, 1998
to $894,000 for the six months ended March 31, 1999.  Such
increase reflected the investment of a portion of the proceeds
from the Company's initial public offering into interest-bearing
deposits and Federal Funds sold.  These increases more than
offset decreases in interest on mortgage-backed securities and
interest and dividends on investment securities.  Interest on
mortgage-backed securities decreased by $220,000, or 18.8%, from
$1.2 million for the six months ended March 31, 1998 to $951,000
for the six months ended March 31, 1999. This decrease was
primarily due to a $6.1 million decrease in the average balance
of mortgage-backed securities.  Interest and dividends on
investment securities decreased $177,000, or 23.8%, from
$742,000 for the six months ended March 31, 1998 to $565,000
for the six months ended March 31, 1999. This decrease was
primarily due to a 137 basis point decrease in the average yield
on investment securities, as a significant portion of the
maturing investment securities carried relatively higher yields.

     Interest Expense.  Interest expense, which consists almost
entirely of interest on deposits, was $4.9 million for the six
months ended March 31, 1998 and the six months ended March 31,
1999.   During the six months ended March 

                              11<PAGE>
<PAGE>
31, 1999, an increase in the average volume of deposits was
offset by a 15 basis point decrease in the average cost of
deposits.

     Average Balance Sheet.  The following tables sets forth
certain information relating to the Company's average balance
sheet and reflects the average yield on assets and cost of
liabilities for the periods indicated and the average yields
earned and rates paid. Such yield and costs are derived by
dividing income or expense by the average balance of assets or
liabilities, respectively, for the periods presented. Average
balances are computed using month-end balances.

     The table also presents information for the periods
indicated with respect to the differences between the average
yield earned on interest-earning assets and average rate paid on
interest-bearing liabilities, or "interest rate spread," which
banks have traditionally used as an indicator of profitability. 
Another indicator of an institution's net interest income is its
"net interest margin," which is its net interest income divided
by the average balance of interest-earning assets. 

<TABLE>
<CAPTION>  
                                                                SIX MONTHS ENDED MARCH 31,               
                                          ----------------------------------------------------------------------
                                                   1999                                       1998       
                                          ---------------------------           --------------------------------

                                          AVERAGE             AVERAGE           AVERAGE                 AVERAGE
                                          BALANCE   INTEREST   RATE             BALANCE    INTEREST       RATE   
                                          -------   --------  ------            -------    --------     --------
                                                                 (Dollars in thousands)
<S>                                         <C>       <C>       <C>               <C>          <C>        <C>
Interest-earning assets:
   Loans . . . . . . . . . . . . .         $186,016   $7,154    7.69%             $159,686     $6,606     8.27%
   Mortgage-backed securities. . . . . .     29,341      951    6.48                35,446      1,171     6.43
   Investment securities and FHLB
      stock. . . . . . . . . . . . . . .     19,188      565    5.89                20,441        742     7.26
   Interest-bearing deposits in other 
      bank and Federal Funds sold  . . .     34,851      894    5.13                25,784        692     5.37
                                           --------   ------                      --------     ------
       Total interest-earning assets . .    269,396    9,564    7.10               242,357      9,211     7.60
Noninterest-earning assets . . . . . . .      9,799                                  9,440               
                                           --------                               --------
       Total assets. . . . . . . . . . .   $279,195                               $251,797
                                           ========                               ========
Interest-bearing liabilities:
   Deposits. . . . . . . . . . . . . . .   $228,997    4,854    4.24              $222,601      4,884     4.39
   Borrowings-short term . . . . . . . .      1,776        4    0.45                 1,560          4     0.51
                                           --------   ------                      --------     ------
Total interest-bearing liabilities . . .    230,773    4,858    4.21               224,181      4,888     4.38
                                                      ------  ------                           ------   ------
Noninterest-bearing liabilities. . . . .      2,938                                  3,137
                                           --------                               --------
       Total liabilities . . . . . . . .    233,711                                227,298
Stockholders' equity . . . . . . . . . .     45,484                                 24,499
                                           --------                               --------
       Total liabilities and stockholders' 
            equity . . . . . . . . . . .   $279,195                               $251,797
                                           ========                               ========

Net interest income. . . . . . . . . . .              $4,706                                   $4,323
                                                      ======                                   ======
Interest rate spread . . . . . . . . . .                        2.89%                                     3.24%
                                                              ======                                    ======
Net interest margin. . . . . . . .                              3.49%                                     3.57%
                                                              ======                                    ======
Ratio average interest earning assets/
    interest bearing liabilities . . . .                      116.74%                                   108.12%
                                                              ======                                    ======
</TABLE>
                               12<PAGE>
<PAGE>
     Provision for Loan Losses.  The Company established
provisions for loan losses of $232,000 for the six months ended
March 31, 1999 as compared to a $39,000 reduction of provisions
for loan losses for the six months ended March 31, 1998,
representing an increase of $271,000.  In establishing such
provisions, management considered the increased size of the loan
portfolio, as well as an analysis of the risk inherent in the
loan portfolio and the increased emphasis on home equity loans,
which entail higher credit risks than residential mortgage
loans.  In November 1998, a builder who had ten loans with the
Company totaling $700,000 declared bankruptcy.  The Bank
foreclosed on November 9, 1998, which resulted in an anticipated
loss of $50,000, requiring the Company to increase its provision
for loan losses. 

     Other Income.  Other income decreased by $355,000, or
56.6%, from $626,000 for the six months ended March 31, 1998 to
$271,000 for the six months ended March 31, 1999.  The decrease
in other income for the six months ended March 31, 1999 was
attributable primarily to a $339,000 gain on sale of branch
deposits, as the Company sold the deposits of its Severna Park
branch in October 1997.  In connection with such sale, the
Company sold deposits totaling $6.2 million and recognized a
gain of $339,000 representing a premium paid by the buyer on the
deposits sold.  During the six months ended March 31, 1999, the
Company recorded a $1,000 gain on the sale of foreclosed real
estate, as compared to a $17,000 loss during the six months
ended March 31, 1998.  Additionally, the decrease in other
income reflected a $24,000, or 23.6%, decrease in fees and
charges on loans from $102,000 for the six months ended March
31, 1998 to $78,000 for the six months ended March 31, 1999. 
Fees were higher in the 1998 period due to one-time fees carried
on letters of credit. 

     Non-interest Expenses.  Total non-interest expenses
increased by $871,000, or 30.0%, from $2.9 million for the six
months ended March 31, 1998 to $3.8 million for the six months
ended March 31, 1999.  The increase in non-interest expenses was
due to increases in salaries and related expenses, occupancy
expense, data processing expense, property and equipment expense
and advertising expense.  The Company's salaries and related
expenses increased by $531,000, or 32.6%, due to the recruitment
of personnel for new offices and the payment of severance
payments to the Bank's former President.  Occupancy expense
increased by $98,000, or 40.3%, and property and equipment
expense increased by $70,000, or 39.3%,  due to the expenses
associated with the establishment of new offices and the
relocation of the Bel Air office.  Data processing expense
increased by $48,000, or 22.7%, due to expenses incurred in
upgrading the Company's computer systems and software to be
prepared for Year 2000 issues.  The Company increased its
advertising expense increased by $62,000, or 44.6%, in an effort
to increase market share.

     Income Taxes.  The Company's income tax expense was
$382,000 and $825,000 for the six months ended March 31, 1999
and 1998, respectively.  The Company's effective tax rates were
39.2% and 39.5% for the six months ended March 31, 1999 and
1998, respectively.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH
31, 1999 AND 1998

     Net Income.  Net income decreased by $258,000, or 42.6%,
from $606,000 for the three months ended March 31, 1998 to
$348,000 for the three months ended March 31, 1999.  The
decrease in net income was primarily attributable to increased
non-interest expense, increased provisions for losses on loans
and decreased other income, which more than offset an increase
in net interest income. 

     Net Interest Income.  Net interest income was $2.4 million
for the three months ended March 31, 1999, compared to $2.1
million for the three months ended March 31, 1998, representing
an increase of $238,000, or 11.1%.  The increase was primarily
due to an increase in the ratio of average interest-earning
assets to average interest-bearing liabilities from 108.06% for
the three months ended March 31, 1998 to 116.77% for the three
months ended March 31, 1999 as a result of the Company's receipt
of the net proceeds from its initial public offering.    This
increase more than offset the decrease in interest rate spread
from 3.17% for the three months ended March 31, 1998 to 2.89%
for the three months ended March 31, 1999.  This decrease in the
interest rate spread reflects a decrease in the yield on
interest-earning assets as the net proceeds from the initial
public offering were invested in lower yielding assets such as
interest-earning deposits and short-term investments.
                               13<PAGE>
<PAGE>
     Interest Income.  Interest income increased by $216,000, or
4.7%, from $4.6 million for the three months ended March 31,
1998 to $4.8 million for the three months ended March 31, 1999. 
Interest and fees on loans increased  by $303,000, or 9.3%, from
$3.3 million for the three months ended March 31, 1998 to $3.6
million for the three months ended March 31, 1999 primarily due
to a $27.9 million increase in the average balance of loans
receivable as the Company implemented its strategy of increasing
loan originations.  The increase in the average volume of loans
receivable more than offset a 57 basis decrease in the average
yield on loans.  Additionally, interest and dividends on
investment securities increased by $14,000 and other interest
income increased by $32,000.  These increases offset a $134,000,
or 23.4%, decrease in interest on mortgage-backed securities
from $574,000 for the three months ended March 31, 1998 to
$440,000 for the three months ended March 31, 1999.  This
decrease in mortgage-backed securities was primarily due to a
$9.2 million decrease in the average volume of mortgage-backed
securities, as the Company pursued a strategy of using
repayments of mortgage-backed securities to fund loan
originations.

     Interest Expense.  Interest expense, which consists almost
entirely of interest on deposits, was $2.4 million for the three
months ended March 31, 1998 and the three months ended March 31,
1999.  During the three months ended March 31, 1999, an increase
in the average volume of deposits was offset by a 17 basis point
decrease in the average cost of deposits.

     Average Balance Sheet.  The following tables sets forth
certain information relating to the Company's average balance
sheet and reflects the average yield on assets and cost of
liabilities for the periods indicated and the average yields
earned and rates paid. Such yield and costs are derived by
dividing income or expense by the average balance of assets or
liabilities, respectively, for the periods presented. Average
balances are computed using month-end balance.

<TABLE>
<CAPTION>  
                                                              THREE MONTHS ENDED MARCH 31,               
                                          ----------------------------------------------------------------------
                                                   1999                                       1998       
                                          ---------------------------           --------------------------------

                                          AVERAGE             AVERAGE           AVERAGE                 AVERAGE
                                          BALANCE   INTEREST   RATE             BALANCE    INTEREST       RATE   
                                          -------   --------  ------            -------    --------     --------
                                                                 (DOLLARS IN THOUSANDS)
<S>                                         <C>       <C>       <C>               <C>          <C>        <C>
Interest-earning assets:
   Loans . . . . . . . . . . . . . . . .    $188,271  $3,582    7.61%             $160,343     $3,278     8.18%
   Mortgage-backed securities. . . . . .      27,229     440    6.46                36,394        574     6.31
   Investment securities and FHLB
      stock. . . . . . . . . . . . . . .      26,854     369    5.50                20,522        356     6.94
   Interest-bearing deposits in other 
      banks and Federal Funds sold . . .      29,695     394    5.31                26,809        362     5.40
                                            --------  ------                      --------     ------
       Total interest-earning assets . .     272,049   4,785    7.04               244,068      4,570     7.49
Noninterest-earning assets . . . . . . .       9,293                                 9,115
                                            --------                              --------               
       Total assets. . . . . . . . . . .    $281,342                              $253,183
                                            ========                              ========
Interest-bearing liabilities:
   Deposits. . . . . . . . . . . . . . .    $230,810   2,414    4.18              $223,953      2,435      4.35
   Borrowings-short term . . . . . . . .       2,174       2    0.37                 1,915          3      0.63
                                            --------  ------                      --------     ------
Total interest-bearing liabilities . . .     232,964   2,416    4.15               225,868      2,438      4.32
                                                      ------  ------                           ------    ------
Noninterest-bearing liabilities. . . . .       2,604                                 2,496
                                            --------                              --------               
       Total liabilities . . . . . . . .     235,588                               228,364
Stockholders' equity . . . . . . . . . .      45,754                                24,819
                                            --------                              --------               
       Total liabilities and stockholders' 
            equity . . . . . . . . . . .    $281,342                              $253,183
                                            ========                              ========
Net interest income. . . . . . . . . . .              $2,369                                   $2,132
                                                      ======                                   ======
Interest rate spread . . . . . . . . . .                        2.89%                                      3.17%
                                                              ======                                     ======
Net interest margin. . . . . . . . . . .                        3.48%                                      3.49%
                                                              ======                                     ======
Ratio average interest earning assets/
    interest bearing liabilities . . . . .                    116.77%                                    108.06%
                                                              ======                                     ======
</TABLE>
                             14<PAGE>
<PAGE>
     Provision for Loan Losses.  The Company established
provisions for losses on loans of $38,000 for the three months
ended March 31, 1999, as compared to a $76,000 reduction of
provisions for losses on loans for the three months ended March
31, 1998, representing an increase of $114,000.  In establishing
such provisions, management considered the increased size of the
loan portfolio, as well as an analysis of the risk inherent in
the loan portfolio and the increased emphasis on home equity
loans, which entail higher credit risks than residential
mortgage loans.

     Other Income.  Other income decreased by $61,000, or 43.0%,
from $142,000 for the three months ended March 31, 1998 to
$81,000 for the three months ended March 31, 1999.  The decrease
in other income for the three months ended March 31, 1999 was
attributable primarily to a $26,000 increase in losses on sales
of foreclosed real estate and a $18,000, or 31.0%, decrease in
fees and charges on loans from $58,000 for the three months
ended March 31, 1998 to $39,000 for the three months ended March
31, 1999.  Fees were higher in the 1998 period due to one-time
fees carried on letters of credit.

     Non-interest Expenses.  Total non-interest expenses
increased by $498,000, or 37.1%, from $1.3 million for the three
months ended March 31, 1998 to $1.8 million for the three months
ended March 31, 1999.  The increase in non-interest expenses was
due to increases in salaries and related expenses, occupancy
expense, data processing expense, property and equipment expense
and advertising expense.  The Company's salaries and related
expenses increased by $332,000, or 47.8%, due to the recruitment
of personnel for the new offices.  Occupancy expense increased
by $43,000, or 34.4%, and property and equipment expense
increased $40,000, or 44.9%, due to the expenses associated with
the establishment of new offices and the relocation of the Bel
Air office.  Data processing expense increased $46,000, or
40.1%, due to expenses incurred in upgrading the Company's
computer systems and software to be prepared for Year 2000
issues.  The Company increased its advertising expense by
$36,000, or 60.0%, in an effort to increase market share.

     Income Taxes.  The Company's income tax expense was
$222,000 and $399,000 for the three months ended March 31, 1999
and 1998, respectively.  The Company's effective tax rates were
38.9% and 39.7% for the three months ended March 31, 1999 and
1998, respectively.

LIQUIDITY AND CAPITAL RESOURCES

     At March 31, 1999, the Bank exceeded all regulatory minimum
capital requirements.  For information reconciling the Bank's
retained earnings as reported in its financial statements at
March 31, 1999 to its tangible, core and risk-based capital
levels and comparing such totals to the regulatory requirements,
see Note 5 of Notes to Consolidated Financial Statements.

     The Company's primary sources of funds are deposits and
proceeds from maturing investment securities and mortgage-backed
securities and principal and interest payments on loans.  While
maturities and scheduled amortization of mortgage-backed
securities and loans are a predictable source of funds, deposit
flows and mortgage prepayments are greatly influenced by general
interest rates, economic conditions, competition and other
factors. 

     The primary investing activities of the Company are the
origination of loans and the purchase of investment securities
and mortgage-backed securities.  During the six months ended
March 31, 1999 and 1998, the Company had $20.2 million and $16.7
million, respectively, of loan originations.  During the six
months ended March 31, 1999 and 1998, the Company purchased
investment securities in the amounts of $25.0 million and $13.5
million, respectively, and mortgage-backed securities in the
amounts of $482,000 and $4.9 million, respectively.  The
purchase of interest-bearing deposits increased from $5.0
million for the six months ended March 31, 1998 to $10.4 million
for the six months ended March 31, 1999.  The primary financing
activity of the Company is the attraction of savings deposits.

     The Company has other sources of liquidity if there is a
need for funds.  The Bank has the ability to obtain advances
from the FHLB of Atlanta.  In addition, the Company maintains a
portion of its investments in interest-bearing deposits at other
financial institutions that will be available, if needed.

                             15<PAGE>
<PAGE>
     The Bank is required to maintain minimum levels of liquid
assets as defined by OTS regulations.  This requirement, which
may be changed at the direction of the OTS depending upon
economic conditions and deposit flows, is based upon a
percentage of deposits and short-term borrowings.  The required
minimum ratio is currently 4.0%.  The Bank's average daily
liquidity ratio for the month of March was approximately 20.0%,
which exceeded the required level for such period.  Management
seeks to maintain a relatively high level of liquidity in order
to retain flexibility in terms of investment opportunities and
deposit pricing.  Because liquid assets generally provide for
lower rates of return, the Bank's relatively high liquidity
will, to a certain extent, result in lower rates of return on
assets. 

     The Company's most liquid assets are cash, interest-bearing
deposits in other banks and federal funds sold, which are
short-term, highly liquid investments with original maturities
of less than three months that are readily convertible to known
amounts of cash.  The levels of these assets are dependent on
the Company's operating, financing and investing activities
during any given period.  At March 31, 1999, cash,
interest-bearing deposits in other banks and federal funds sold
were $2.8 million, $17.5 million and $8.8 million, respectively.

     The Company anticipates that it will have sufficient funds
available to meet its current commitments.  Certificates of
deposit which are scheduled to mature in less than six months at
March 31, 1999 totaled $71.5 million.  Based on past experience,
management believes that a significant portion of such deposits
will remain with the Bank.  The Bank is a party to financial
instruments with off-balance-sheet risk made in the normal
course of business to meet the financing needs of its customers. 
These financial instruments are standby letters of credit, lines
of credit and commitments to fund mortgage loans and involve to
varying degrees elements of credit risk in excess of the amount
recognized in the statement of financial position.  The contract
amounts of those instruments express the extent of involvement
the Company has in this class of financial instruments and
represents the Company's exposure to credit loss from
nonperformance by the other party. 

     The Company generally requires collateral or other security
to support financial instruments with off-balance-sheet credit
risk.  At March 31, 1999, the Company had commitments under
standby letters of credit and lines of credit and commitments to
originate mortgage loans of $1.5 million, $13.3 million and $4.9
million, respectively. 

PART II.  OTHER INFORMATION

     ITEM 1.   LEGAL PROCEEDINGS

     None.

     ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS

     None.
     
     ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

     None.

     ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY-
               HOLDERS

     None.

     ITEM 5.   OTHER INFORMATION

     None.
                             16<PAGE>
<PAGE>
     ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (a)  List of Exhibits

          Exhibit 27 - Financial Data Schedule

     (b)  Form 8-K

          No Reports on Form 8-K were filed during the quarter
          ended March 31, 1999.

                            17<PAGE>
<PAGE>
                      SIGNATURES



     In accordance with the requirements of the Exchange Act,
the registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                                   BCSB BANKCORP, INC.



Date:  May 14, 1999                /s/ Gary C. Loraditch
                                   ------------------------
                                   Gary C. Loraditch
                                   President
                                   (Principal Executive
                                   Officer)



Date:  May 14, 1999               /s/ Bonnie M. Klein
                                   ------------------------
                                   Bonnie M. Klein
                                   Vice President and Treasurer
                                   (Principal Financial and
                                   Accounting Officer)

                            18