U.S. SECURITIES AND EXCHANGE
                         COMMISSION Washington, DC 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, 2003

     Transition report under Section 13 or 15(d) of the Exchange Act
---  For the transition period from                 to
                                    ---------------    ----------------

                          Commission File No. 333-70589

                              NEW COMMERCE BANCORP
                              --------------------
        (Exact Name of Small Business Issuer as Specified in its Charter)

         South Carolina                              58-2403844
         --------------                              ----------
    (State of Incorporation)               (I.R.S. Employer Identification No.)

            501 New Commerce Court, Greenville, South Carolina 29607
            --------------------------------------------------------
                    (Address of Principal Executive Offices)

                                 (864) 297-6333
                                 --------------
                (Issuer's Telephone Number, Including Area Code)


                                 Not Applicable
                                 --------------
              (Former Name, Former Address and Former Fiscal Year,
                         if Changed Since Last Report)


     State the number of shares  outstanding of each of the issuer's  classes of
common equity,  as of the latest  practicable  date:  1,000,000 shares of common
stock, par value $.01 per share, outstanding as of May 6, 2003.

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






<PAGE>



                          PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

<TABLE>
<CAPTION>

                       NEW COMMERCE BANCORP AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)


                                                             March 31,          December 31,
                                                               2003                2002
                                                             ---------          ------------
<S>                                                         <C>                  <C>
Assets:
Cash and due from banks                                     $  2,345,911         $  3,017,238
Federal funds sold                                               114,854            3,342,348
Investment securities, available for sale                     11,173,257           12,736,310
Investment securities, held to maturity                        1,215,851            1,286,650
Federal Reserve Bank stock                                       237,250              237,250
Federal Home Loan Bank stock                                     236,300              250,000
Loans, net                                                    42,135,483           37,937,537
Property and equipment, net                                    4,199,140            4,232,820
Accrued interest receivable                                      217,672              251,725
Other assets                                                     369,027              341,221
                                                            ------------        -------------
        Total assets                                        $ 62,244,745        $  63,633,099
                                                            ============        =============

Liabilities and Shareholders' Equity:
Liabilities:
     Deposits                                               $ 48,129,168        $  47,522,005
     Advances from Federal Home Loan Bank                      4,800,000            4,725,000
     Drafts outstanding                                          178,380            2,289,560
     Other borrowings                                            150,000                    -
     Other liabilities                                           202,268              257,429
                                                            ------------        -------------
        Total liabilities                                     53,459,816           54,793,994
                                                            ------------        -------------

Shareholders Equity:
     Preferred stock, $.01 par value, 10,000,000 shares
        authorized, no shares issued                                   -                    -
     Common stock, $.01 par value, 10,000,000 shares
        authorized, 1,000,000 issued and outstanding              10,000               10,000
     Additional paid-in capital                                9,741,658            9,741,658
     Retained deficit                                         (1,197,079)          (1,203,432)
     Accumulated other comprehensive income                      230,350              290,879
                                                            ------------        -------------
        Total shareholders' equity                             8,784,929            8,839,105
                                                            ------------        -------------
        Total liabilities and shareholders' equity          $ 62,244,745        $  63,633,099
                                                            ============        =============
</TABLE>


See Notes to Consolidated Financial Statements, which are an integral part of
these statements.






                                       2
<PAGE>



<TABLE>
<CAPTION>
                       NEW COMMERCE BANCORP AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

                                                                  Three Months Ended
                                                                      March 31,
                                                              --------------------------
                                                                2003              2002
                                                              --------          --------
<S>                                                           <C>               <C>
Interest Income:
     Interest and fees on loans                               $  563,728        $  470,234
     Investment securities                                       201,491           231,286
     Federal funds sold                                            3,424               141
                                                              ----------        ----------
        Total interest income                                    768,643           701,661
                                                              ----------        ----------

Interest Expense:
     Deposits                                                    209,135           206,425
     Securities sold under agreements to repurchase                    -            28,782
     Advances from Federal Home Loan Bank                         34,325                 -
     Federal funds purchased                                       1,589             4,127
                                                              ----------        ----------
        Total interest expense                                   245,049           239,334
                                                              ----------        ----------

Net Interest Income                                              523,594           462,327

Provision for Loan Losses                                         44,225             9,325
                                                              ----------        ----------

Net Interest Income After Provision for Loan Losses              479,369           453,002
                                                              ----------        ----------

Non-Interest Income:
     Service fees on deposit accounts                             37,775            23,755
     Mortgage brokerage income                                    37,840            16,730
     Gain on sale of investment securities                        11,714                 -
     Other                                                        13,556            15,051
                                                              ----------        ----------
        Total non-interest income                                100,885            55,536
                                                              ----------        ----------

Total Income                                                     580,254           508,538
                                                              ----------        ----------

Non-Interest Expense:
     Salaries and benefits                                       316,380           284,039
     Occupancy, furniture and equipment                           96,173            85,045
     Data processing                                              49,239            48,396
     Marketing                                                    17,138            14,697
     Printing, supplies and postage                               18,564             9,440
     Other                                                        72,607            59,049
                                                              ----------        ----------
        Total non-interest expenses                              570,101           500,666
                                                              ----------        ----------

Income Before Income Taxes                                        10,153             7,872

Income Tax Provision                                               3,800             3,366
                                                              ----------        ----------

Net Income                                                     $   6,353        $    4,506
                                                               =========        ==========

Basic and Diluted Earnings per Share                           $    0.01        $     0.00

Weighted Average Shares Outstanding - Basic                    1,000,000         1,000,000

Weighted Average Shares Outstanding - Diluted                  1,017,977         1,000,000

</TABLE>

See Notes to Consolidated Financial Statements, which are an integral part of
these statements.



                                       3
<PAGE>

<TABLE>
<CAPTION>
                       NEW COMMERCE BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME
            FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2003 AND 2002
                                   (UNAUDITED)


                                                                                                 Accumulated
                                          Common Stock           Additional                         Other               Total
                                    --------------------------    Paid-in         Retained      Comprehensive        Shareholders
                                       Shares        Amount       Capital         Deficit       Income (Loss)        Equity
                                    -------------  -----------  -------------  ---------------  ---------------  ---------------
<S>                                   <C>           <C>          <C>             <C>              <C>              <C>
Balance, December 31, 2001            1,000,000     $ 10,000     $ 9,741,658     $(1,240,960)     $  247,494       $ 8,758,192
                                                                                                                   -----------

Net income                                    -            -               -           4,506               -             4,506
Other comprehensive loss, net of
  tax:
  Unrealized holding gain on
    securities available for sale
    net of tax effect of $62,573              -            -               -               -        (121,465)         (121,465)
                                                                                                                   -----------
Comprehensive loss                            -            -               -               -               -          (116,959)
                                      ---------     --------     -----------     -----------      ----------       -----------

Balance, March 31, 2002               1,000,000     $ 10,000     $ 9,741,658     $(1,236,454)     $  126,029       $ 8,641,233
                                      =========     ========     ===========     ===========      ==========       ===========

Balance, December 31, 2002            1,000,000     $ 10,000     $ 9,741,658     $(1,203,432)     $  290,879       $ 8,839,105
                                                                                                  ----------       -----------

Net income                                    -            -               -           6,353               -             6,353
Other comprehensive loss, net of
  tax:
  Unrealized holding gain on
    securities available for sale,
    net of tax effect of $31,214              -            -               -               -         (53,149)                -
  Reclassification of net gain on
    securities available for sale
    included in net income, net of
    tax effect of $4,334                      -            -               -               -          (7,380)                -
                                                                                                  ----------
      Other comprehensive loss                -            -               -               -         (60,529)          (60,529)
                                      ---------     --------     -----------     -----------      ----------       -----------
Comprehensive loss                            -            -               -               -               -           (54,176)
                                      ---------     --------     -----------     -----------      ----------       -----------

Balance, March 31, 2003               1,000,000     $ 10,000     $ 9,741,658     $(1,197,079)     $  230,350       $ 8,784,929
                                      =========     ========     ===========     ===========      ==========       ===========
</TABLE>




See Notes to Consolidated Financial Statements, which are an integral part of
these statements



                                       4
<PAGE>



<TABLE>
<CAPTION>
                       NEW COMMERCE BANCORP AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                                                      Three Months Ended
                                                                                          March 31,
                                                                                  --------------------------
                                                                                      2003          2002
                                                                                  ------------   -----------
<S>                                                                                <C>           <C>
Operating Activities:
    Net income                                                                     $     6,353   $     4,506
    Adjustments to reconcile net income (loss) to net cash provided by
      operating activities:
      Provision for loan losses                                                         44,225         9,325
      Depreciation and amortization                                                     36,564        26,974
      Gain on sale of investment securities                                            (11,714)            -
      Decrease in accrued interest receivable                                           34,053        20,344
      Decrease (increase)in other assets                                                 7,743       (71,894)
      (Decrease) in other liabilities                                                  (55,161)      (49,840)
                                                                                   -----------   -----------

        Net cash provided by (used for) operating activities                            62,063       (60,585)
                                                                                   -----------   -----------

Investing Activities:
    Increase in loans, net                                                          (4,242,171)     (774,825)
    Purchase of investment securities available for sale                                     -      (501,052)
    Purchase of investment securities held to maturity                                       -      (198,688)
    Redemption (purchase) of Federal Home Loan Bank stock                               13,700        (5,600)
    Proceeds from principal payments on investment securities available
       for sale                                                                      1,066,260       835,323
    Proceeds from principal payments on investment securities held to
       maturity                                                                         74,513             -
    Proceeds from sale or call of investment securities available for                  415,147             -
      sale
    Purchase of property and equipment                                                  (9,316)       (1,433)
                                                                                   -----------   -----------

        Net cash used for investing activities                                      (2,681,867)     (646,275)
                                                                                   -----------   -----------

Financing Activities:
    Increase (decrease) in deposits, net                                               607,163    (2,638,492)
    Net increase in advances from Federal Home Loan Bank                                75,000             -
    Net decrease in  securities sold under agreement to repurchase                           -       (64,000)
    (Decrease) increase in drafts outstanding                                       (2,111,180)      498,661
    Net increase in federal funds purchased                                            150,000     2,115,000
                                                                                   -----------   -----------

        Net cash used for financing activities                                      (1,279,017)      (88,831)
                                                                                   -----------   -----------

Net Decrease in Cash and Cash Equivalents                                           (3,898,821)     (795,691)

Cash and Cash Equivalents, Beginning of Period                                       6,359,586     2,024,336
                                                                                   -----------   -----------

Cash and Cash Equivalents, End of Period                                           $ 2,460,765   $ 1,228,645
                                                                                   ===========   ===========

Supplemental Disclosures of Cash Flow Information:
    Cash Paid For:
      Interest                                                                     $   241,552   $   458,002
                                                                                   ===========   ===========
      Income Taxes                                                                 $     2,675   $         -
                                                                                   ===========   ===========
</TABLE>

See Notes to Consolidated Financial Statements, which are an integral part of
these statements.





                                       5
<PAGE>


                       NEW COMMERCE BANCORP AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note 1 - Organization and Basis of Presentation
-----------------------------------------------

Organization
------------
New Commerce BanCorp (the "Holding Company"), is incorporated under the laws of
the State of South Carolina for the purpose of operating as a bank holding
company for New Commerce Bank (the "Bank"). The Bank provides full commercial
banking services to customers and is subject to regulation of the Office of the
Comptroller of the Currency and the Federal Deposit Insurance Corporation. The
Holding Company is subject to the regulation of the Federal Reserve Board.

Basis of Presentation
---------------------
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals and
adjustments) considered necessary for a fair presentation have been included.
Operating results for the three months ended March 31, 2003 are not necessarily
indicative of the results for the year ending December 31, 2003. For further
information, refer to the consolidated financial statements and footnotes
thereto included in our Form 10-KSB for the period ended December 31, 2002
(Registration Number 333-70589) as filed with the Securities and Exchange
Commission.


Note 2 - Earnings per Share
---------------------------

The following schedule reconciles the numerators and denominators of the basic
and diluted earnings per share ("EPS") computations for the three-month periods
ended March 31, 2003 and 2002. Diluted common shares arise from the potentially
dilutive effect of the stock options and warrants outstanding.

                                                       Three Months Ended
                                                             March 31,
                                                    ----------------------------
                                                        2003            2002
                                                    -------------   ------------

Basic EPS:
Net income                                           $    6,353      $    4,506
Average common shares outstanding                     1,000,000       1,000,000
                                                     ----------      ----------

Basic earnings per share                             $     0.01      $     0.00
                                                     ==========      ==========

Diluted EPS:
Net income                                           $    6,353      $    4,506
                                                     ----------      ----------

Average common shares outstanding                     1,000,000       1,000,000
Dilutive effect of stock options and warrants            17,977               -
                                                     ----------      ----------

Average dilutive shares outstanding                   1,017,977       1,000,000
                                                     ----------      ----------

Diluted earnings per share                           $     0.01      $     0.00
                                                     ==========      ==========




                                       6
<PAGE>


Note 3 - Stock Options and Warrants
-----------------------------------

We have two stock-based employee compensation plans and we account for those
plans under the recognition and measurement principles of Accounting Principles
Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related
Interpretations. No stock-based employee compensation cost is reflected in net
income (loss), as all stock options and warrants granted under those plans had
an exercise price equal to the market value of the underlying common stock on
the date of grant. The following table illustrates the effect on net income and
earnings per share as if we had applied the fair value recognition provisions of
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 123, "Accounting for Stock-Based Compensation" to stock-based employee
compensation.

                                                      Three Months Ended
                                                           March 31,
                                                 -----------------------------
                                                     2003           2002
                                                 -------------  --------------

Net income as reported                             $  6,353        $  4,506
Deduct:  Total stock-based employee
   compensation expense determined under
   fair value based method for all awards,
   net of related income tax effect                   8,534        $  8,915
                                                   --------        --------

Pro forma net loss                                 $ (2,181)       $ (4,409)
                                                   ========        ========

Earnings (loss) per share:
  Basic and diluted - as reported                  $   0.01        $   0.00
                                                   ========        ========
  Basic and diluted - pro forma                    $  (0.00)       $  (0.00)
                                                   ========        ========


The following is an analysis of stock option activity for the three months ended
March 31, 2003 and 2002:

<TABLE>
<CAPTION>
                                                         2003                               2002
                                             -----------------------------      -----------------------------
                                                               Weighted                          Weighted
                                                               Average                            Average
                                                               Exercise                          Exercise
                                                Shares          Price              Shares          Price
                                             -------------   -------------      -------------  --------------

<S>                                              <C>            <C>                 <C>            <C>
Outstanding at beginning of period               128,000        $   8.22            113,000        $   8.35
Granted                                                -               -             20,000            7.94
Forfeitures                                            -               -            (14,000)           9.14
                                                 -------                            -------

Outstanding at end of period                     128,000            8.22            119,000            8.19
                                                 =======                            =======

Options exercisable                               40,400            8.85             19,200            9.83
                                                 =======                            =======

Shares available for grant                        22,000                             40,000
                                                 =======                            =======
</TABLE>

Upon completion of the 1999 stock offering, each of our organizers received
warrants to purchase 7,500 shares of common stock or a total of 90,000 shares at
$10.00 per share. The warrants vested immediately and are exercisable through
January 12, 2009.




                                       7
<PAGE>


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

The following is our discussion and analysis of certain significant factors that
have affected our financial position and operating results and those of our
subsidiary, New Commerce Bank, during the periods included in the accompanying
consolidated financial statements. This commentary should be read in conjunction
with the financial statements and the related notes and the other statistical
information included in this report.

This report contains "forward-looking statements" relating to, without
limitation, future economic performance, plans and objectives of management for
future operations, and projections of revenues and other financial items that
are based on the beliefs of management, as well as assumptions made by and
information currently available to management. The words "may," "will,"
"anticipate," "should," "would," "believe," "contemplate," "expect," "estimate,"
"continue," "may," and "intend," as well as other similar words and expressions
of the future, are intended to identify forward-looking statements. Our actual
results may differ materially from the results discussed in the forward-looking
statements, and our operating performance each quarter is subject to various
risks and uncertainties that are discussed in detail in our filings with the
Securities and Exchange Commission, including, without limitation:

     o   significant increases in competitive pressure in the banking and
         financial services industries;

     o   changes in the interest rate environment which could reduce anticipated
         or actual margins;

     o   changes in political conditions or the legislative or regulatory
         environment;

     o   the level of allowance for loan loss;

     o   the rate of delinquencies and amounts of charge-offs;

     o   the rates of loan growth;

     o   adverse changes in asset quality and resulting credit risk-related
         losses and expenses;

     o   general economic conditions, either nationally or regionally and
         especially in primary service area, becoming less favorable than
         expected resulting in, among other things, a deterioration in credit
         quality;

     o   changes occurring in business conditions and inflation;

     o   changes in technology;

     o   changes in monetary and tax policies;

     o   changes in the securities markets; and

     o   other risks and uncertainties detailed from time to time in our filings
         with the Securities and Exchange Commission.



                                       8
<PAGE>


Critical Accounting Policies

We have adopted  various  accounting  policies  which govern the  application of
accounting principles generally accepted in the United States in the preparation
of our financial  statements.  Certain accounting  policies involve  significant
judgments and assumptions by management.  These judgments have a material impact
on the carrying value of certain assets and  liabilities.  Management  judgments
and assumptions are based on historical experience and other factors,  which are
believed  to be  reasonable  under the  circumstances.  Because of the nature of
these judgments, actual results could differ and could have a material impact on
the carrying values of assets and liabilities and the results of operations.  We
believe that the allowance for loan losses methodology  represents a significant
accounting policy, which requires the most critical judgments and estimates used
in preparation of our consolidated  financial statements.  Refer to the "Results
of  Operations  for the Three Months Ended March 31, 2003  Compared to the Three
Months Ended March 31, 2002 - Provision for Loan Losses" as well as the "Balance
Sheet  Review  at  March  31,  2003 -  Loans  and  Allowance  for  Loan  Losses"
discussions below.


Results of Operations for the Three Months Ended March 31, 2003 Compared to the
Three Months Ended March 31, 2002

Consolidated  net income for our first  quarter of 2003,  which  ended March 31,
2003, was $6,353, or $0.01 per share, compared to net income of $4,506, or $0.00
per share, for the first quarter of 2002, which ended March 31, 2002.  Following
is a discussion of the more significant components of our net income.




                                       9
<PAGE>


Net Interest Income
-------------------
The largest component of total income is net interest income, the difference
between the income earned on assets and the interest accrued or paid on deposits
and borrowings used to support such assets. The volume and mix of assets and
liabilities and their sensitivity to interest rate movement determine changes in
net interest income. Net interest margin is determined by dividing annualized
net interest income by average earning assets. Net interest spread is derived
from determining the weighted-average rate of interest paid on deposits and
borrowings and subtracting them from the weighted-average yield on earning
assets. Net interest income for the quarter ended March 31, 2003 was $523,594,
compared to $462,327 for the same period last year, an increase of 13%. This
increase was the result of increased balances of earning assets and the impact
of lower interest rates on our interest-bearing liabilities, offset partially by
the effect of lower interest rates on earning assets.

For the quarter ended March 31, 2003, average earning assets totaled $54.8
million with an annualized average yield of 5.61%. Average earning assets and
annualized average yield were $44.8 million and 6.26%, respectively, for the
quarter ended March 31, 2002. For the quarter ended March 31, 2003, average
interest-bearing liabilities totaled $51.6 million with an annualized average
cost of 1.90%. Average interest-bearing liabilities and annualized average cost
were $41.7 million and 2.30%, respectively, for the quarter ended March 31,
2002.

Because loans often provide a higher yield than other types of earning assets,
one of our goals is to maintain our loan portfolio as the largest component of
total earning assets. Loans comprised approximately 73% and 64% of average
earning assets for the first quarter of 2003 and 2002, respectively. Loan
interest income for the quarter ended March 31, 2003 totaled $563,728, compared
to $470,234 for the same period in 2002. The annualized average yield on loans
was 5.64% for the quarter ended March 31, 2003, compared to 6.51% for the same
period in 2002. The yield decreased as a result of the declining interest rate
environment and its impact on our variable rate loan portfolio (which is about
73% of our loans). Average balances of loans increased to $40.0 million during
the quarter ended March 31, 2003, an increase of $11.2 million over the average
of $28.8 million during the comparable quarter in 2002. The increase in average
balances offset the impact of the decrease in yield on interest income.

Investment securities averaged $14.1 million, or 26% of average earning assets,
for the first quarter of 2003, compared to $15.9 million, or 35% of average
earning assets, for the same period in 2002. Interest earned on investment
securities amounted to $201,491 for the quarter ended March 31, 2003, compared
to $231,286 for the quarter ended March 31, 2002. Investment securities yielded
5.71% during the first quarter of 2003, compared to 5.82% during the same period
last year. This difference resulted from the effect of the sale of securities
held in the portfolio during the period ended March 31, 2002 that had a higher
yield than the average yield on securities held in the portfolio during the
quarter ended March 31, 2003 and the purchase of lower yielding securities
subsequent to the prior year quarter.

Interest expense for the quarter ended March 31, 2003 was $245,049 compared to
$239,334 for the same period last year. The largest component of interest
expense is interest on deposit accounts. The average balance of deposits
increased to $46.2 million during the quarter ended March 31, 2003 from $35.7
million during the quarter ended March 31, 2002. The annualized average cost of
deposits was 1.81% for the quarter ended March 31, 2003, compared to 2.31% for
the same period in 2002. The decrease was due to market interest rates declining
throughout 2002, which has impacted the rates we offer to our depositors.
Interest on other interest-bearing liabilities for the quarter ended March 31,
2003 was $35,914 at an average cost of 2.64% compared to $32,909 at and average
rate of 2.21% during the same period in 2002. The overall cost of funds was
1.90% for the quarter ended March 31, 2003, compared to 2.30% for the same
period in 2002.

Provision for Loan Losses
-------------------------
The provision for loan losses is the charge to operating earnings that our
management believes is necessary to maintain the allowance for loan losses at an
adequate level. The amount charged to the provision is based on a review of
past-due loans and delinquency trends, actual losses, classified and criticized
loans, loan portfolio growth, concentrations of credit, economic conditions,
historical charge-off activity and internal credit risk ratings. Loan
charge-offs and recoveries are charged or credited directly to the allowance.
For the quarter ended March 31, 2003, the provision for loan losses was $44,225
compared to $9,325 for the same period last year. This increase of $34,900
reflects, and is consistent with, our loan growth since the quarter ended March
31. See "Balance Sheet Review at March 31, 2003 - Loans and Allowance for Loan
Losses.


                                       10
<PAGE>

Non-Interest Income
-------------------
Non-interest income for the quarter ended March 31, 2003 was $100,885, compared
to $55,536 for the same period in 2002, an increase of $45,349. Mortgage
brokerage income was $37,840, compared to $16,730 for the same period in 2002,
an increase of $21,110. Mortgage loan originations in recent months have
increased due to refinancing activity related to the current low mortgage loan
interest rate environment. Another component of the increase was a gain of
$11,714 on the sale of investment securities during the quarter ended March 31,
2003 that was not present in the prior year quarter. We sell securities from
time to time for various reasons including liquidity needs, changes in credit
quality, market valuation factors, etc. Since the principal purpose of our
investment portfolio is liquidity management and not to derive income from
trading activity, we consider this gain a nonrecurring item. Currently, we have
no plans to sell additional securities. All other fees and charges increased due
to the growth in account relationships experienced during the current period,
particularly checking accounts.

Non-Interest Expense
--------------------
Non-interest expense for the quarter ended March 31, 2003 was $570,101, compared
to $500,666 for the same period in 2002. The principal component of this
increase was in salaries and benefits, the largest component of non-interest
expense, which increased by $32,341 to $316,380 for the quarter ended March 31,
2003 from $284,039 for the quarter ended March 31, 2002. This increase is the
result of annual raises and the hiring of additional staff since the prior year
quarter, particularly an additional commercial lender and a retail banking
manager. Additionally, commissions paid on mortgage loan originations increased
during the current quarter due to the increase in mortgage origination income as
previously discussed. We expect salaries and benefits to continue to increase as
we continue to grow and add personnel to support the growth.


Balance Sheet Review at March 31, 2003

General
-------
Total consolidated assets decreased $1.4 million to $62.2 million at March 31,
2003 from $63.6 at December 31, 2002. This 2% decrease in assets was comprised
principally of a $3.9 million decrease in cash and federal funds sold. These
assets decreased as the result of the settlement of $2.1 million of drafts that
were outstanding at December 31, 2002. Loans outstanding increased $4.2 million
during the quarter. Our loans have increased in part due to the hiring of an
additional commercial loan officer late in the first quarter of the 2002 and our
continued focus on establishing new client relationships. Investment securities
decreased by $1.6 million due to the sale of securities and from principal
collections on mortgage-backed securities.

There was a $607,000 increase in deposits, bringing deposits up to $48.1 million
at March 31, 2003. There were both increases and decreases in deposit balances
of several of our larger commercial and personal account relationships. The net
effect was that we had a decrease in balances of deposits of clients in our
market area. We obtained additional brokered deposits to fund our loan growth.
The total of such brokered deposits at March 31, 2002 was $1.8 million.

For more analysis of the components of the changes in asset and liabilities, see
the following discussion of major balance sheet categories and the Consolidated
Statements of Cash Flows included in "Item 1. Financial Statements."

We closely monitor and seek to maintain appropriate levels of interest earning
assets and interest bearing liabilities so that maturities of assets are such
that adequate funds are provided to meet customer withdrawals and loan demand.




                                       11
<PAGE>


Loans and Allowance for Loan Losses
-----------------------------------
Outstanding loans represented the largest component of earning assets as of
March 31, 2003 at $42.7 million, or 77% of total earning assets, compared to 68%
at December 31, 2002. Loans have increased 11% since December 31, 2002. Balances
within the major loan categories were as follows:

<TABLE>
<CAPTION>
                                               March 31, 2003                 December 31, 2002
                                       -------------------------------  -------------------------------
                                           Amount          Percent          Amount          Percent
                                       ---------------   -------------  ----------------  -------------

<S>                                      <C>                  <C>          <C>                 <C>
Commercial                               $ 7,106,968          16.6%        $ 6,462,271         16.8%
Real estate - construction                 1,848,308           4.4           1,781,866          4.6
Real estate - mortgage                    27,125,243          63.5          24,760,074         64.4
Consumer                                   6,632,066          15.5           5,474,605         14.2
                                         -----------         -----         -----------        -----

  Total loans                             42,712,585         100.0%         38,478,816        100.0%
                                                             =====                            =====
Allowance for loan losses                   (534,000)                         (492,000)
Deferred loan costs, net                     (43,102)                          (49,279)
                                         -----------                       -----------

  Net loans                              $42,135,483                       $37,937,537
                                         ===========                       ===========
</TABLE>

The loan portfolio is periodically reviewed to evaluate the outstanding loans,
to measure both the performance of the portfolio and the adequacy of the
allowance for loan losses, and to provide for probable losses inherent in the
loan portfolio.

This analysis and determination of the level of the allowance includes a review
of past-due loans and delinquency trends, actual losses, classified and
criticized loans, loan portfolio growth, concentrations of credit, economic
conditions, historical charge-off activity and internal credit risk ratings.
Management's judgment as to the adequacy of the allowance is based upon a number
of assumptions about future events, which it believes to be reasonable, but
which may or may not be accurate. Because of the inherent uncertainty of
assumptions made during the evaluation process, there can be no assurance that
loan losses in future periods will not exceed the allowance for loan losses or
that additional allocations will not be required. The following is an analysis
of the allowance for loan losses:

Allowance for loan losses, December 31, 2002                   $ 492,000
Provision                                                         44,225
Charge-offs - consumer                                            (2,225)
                                                               ---------

Allowance for loan losses, March 31, 2003                      $ 534,000
                                                               =========

Allowance for loan losses to loans outstanding:
    March 31, 2003                                                  1.25%
                                                               =========
    December 31, 2002                                               1.28%
                                                               =========

Nonperforming assets consist of nonaccrual loans, other real estate owned, and
repossessed collateral. Generally, loans are placed on nonaccrual status when
they become 90 days past due, or when management believes that the borrower's
financial condition is such that collection of the loan is doubtful. Interest
stops accruing when a loan is placed on nonaccrual status. Interest income on
these loans is recognized when payments are received. There were neither any
nonaccrual loans nor any loans delinquent more than 90 days at March 31, 2003
and December 31, 2002.



                                       12
<PAGE>


Investment Portfolio
--------------------
Investment securities represented 22% and 26% of earning assets at March 31,
2003 and December 31, 2002, respectively. We primarily invest in government
agency or government-sponsored agency securities, mortgage-backed securities,
collateralized mortgage obligations and credit quality corporate bonds. We also
own stock in the Federal Reserve Bank and the Federal Home Loan Bank of Atlanta.

The following is a table of investment securities by category at March 31, 2003
and December 31, 2002:

<TABLE>
<CAPTION>
                                                              March 31,         December 31,
                                                                2003                 2002
                                                           ----------------     ----------------

<S>                                                           <C>                  <C>
  Federal agency obligations                                  $    783,820         $    786,123
  Mortgage-backed securities                                     7,505,058            8,217,642
  Collateralized mortgage obligations                              345,576            1,186,470
  Corporate bonds                                                2,538,803            2,546,075
                                                               -----------          -----------
    Total available for sale                                  $ 11,173,257         $ 12,736,310
                                                              ============         ============

Held to maturity
  Federal agency obligations                                  $    199,088         $    199,001
  Mortgage-backed securities                                       516,763              587,649
  Trust preferred securities                                       500,000              500,000
                                                              ------------         ------------
    Total held to maturity                                    $  1,215,851         $  1,286,650
                                                              ============         ============
</TABLE>

Deposits
--------
Balances within the major deposit categories as of March 31, 2003 and December
31, 2002 were as follows:

<TABLE>
<CAPTION>
                                                              March 31,          December 31,
                                                                2003                 2002
                                                           ----------------     ----------------

<S>                                                           <C>                  <C>
Non-interest bearing demand deposits                          $  6,914,096         $  4,877,681
Interest bearing checking                                        3,422,858            3,332,544
Savings deposits                                                   764,066              564,582
Money market accounts                                           13,373,984           17,279,741
Time deposits less than $100,000                                10,989,842           10,707,188
Time deposits of $100,000 or more                               12,664,322           10,760,269
                                                              ------------         ------------

                                                              $ 48,129,168         $ 47,522,005
                                                              ============         ============
</TABLE>

Other Borrowings
----------------
We maintain federal funds lines of credit with correspondent banks to meet
short-term liquidity needs. As a member of the FHLB, we have access to
borrowings through various FHLB programs. At March 31, 2003, and December 31,
2002 there were short-term borrowings outstanding of $150,000 and $0,
respectively, and FHLB advances of $4,800,000 and $4,725,000, respectively.




                                       13
<PAGE>



Interest Rate Sensitivity
-------------------------
Interest rate sensitivity is defined as the exposure to variability in net
interest income resulting from changes in market-based interest rates.
Asset/liability management is the process by which we monitor and control the
mix, maturities, and interest sensitivity of our assets and liabilities.
Asset/liability management seeks to ensure adequate liquidity and to maintain an
appropriate balance between interest-sensitive assets and liabilities to
minimize potentially adverse impacts on earnings from changes in market interest
rates. Interest rate sensitivity can be managed by repricing assets or
liabilities, selling securities available-for-sale, replacing an asset or
liability at maturity, or adjusting the interest rate during the life of an
asset or liability. We believe that interest rate risk management becomes
increasingly important in an interest rate environment and economy such as the
one that we are currently experiencing.

We monitor interest rate sensitivity by measuring our interest sensitivity
through a "gap" analysis, which is the positive or negative dollar difference
between assets and liabilities that are subject to interest rate repricing
within a given time period. However, since interest rates and yields on various
interest sensitive assets and liabilities do not all adjust in the same degree
when there is a change in prevailing interest rates (such as prime rate), the
traditional gap analysis is only a general indicator of rate sensitivity and net
interest income volatility. Therefore, we also contract with a third-party to
assist in the preparation of a rate sensitivity model which applies rate
sensitivity measures to assets and liabilities that will reprice within one year
at assumed upward and downward shifts in prime rate. From our latest analysis,
we have estimated that net interest income over a one-year timeframe generally
would decrease with a decrease in prime rate and increase with an increase in
prime rate. The estimates, using a 100 basis point shift in prime rate downward
and upward, shows an effect on net interest income of approximately minus
$100,000 and plus $100,000, respectively. These numbers are to be taken as
general indications only, in that they were derived from a methodology that
utilizes numerous assumptions about sensitivities of various assets and
liabilities to changes in interest rates. These estimates are used as a guide by
management, recognizing that model risk is always present whenever assumptions
of the future must be made. Actual results may differ from the estimates, should
there be changes in interest rates.

Liquidity Management
--------------------
Liquidity management involves monitoring our sources and uses of funds in order
to meet our day-to-day cash flow requirements while maximizing profits.
Liquidity represents the ability of a company to convert assets into cash or
cash equivalents without significant loss and to raise additional funds by
increasing liabilities. Liquidity management is made more complicated because
different balance sheet components are subject to varying degrees of management
control. For example, the timing of maturities of the investment portfolio is
fairly predictable and subject to a high degree of control at the time
investment decisions are made. However, net deposit inflows and outflows are far
less predictable and are not subject to nearly the same degree of control. We
must maintain adequate liquidity to respond to short-term deposit withdrawals,
maturities of short-term borrowings, loan demand and payment of operating
expenses.

At March 31, 2003, our liquid assets, consisting of cash and due from banks and
federal funds sold, amounted to $2.5 million and represented 4% of total assets.
Investment securities totaled $12.4 million and represented 20% of total assets.
Investment securities that have not been pledged as collateral for deposits in
excess of FDIC coverage or for other borrowings (and classified as available-for
sale) provide a secondary source of liquidity since they can be converted to
cash in a timely manner. At March 31, 2003, we had securities with a market
value of $3.1 million classified as available for sale that were not pledged.
Our ability to maintain and expand our deposit base and borrowing capabilities
also serves as a source of liquidity. Our loan to deposit ratio at March 31,
2003 was 89%. We plan to meet our future cash needs through the liquidation of
temporary investments, maturities of loans, maturities and cash flows from
investment securities, generation of deposits, and the utilization of borrowing
arrangements with correspondent banks. We maintain federal funds lines of credit
with correspondent banks in the amount of $5,800,000, lines of credit with the
Federal Reserve Bank, and we are a member of the Federal Home Loan Bank, from
which application for borrowings can be made for leverage purposes. At March 31,
2003, we had approximately $12.4 million in available credit under our FHLB
facility, of which $4.8 million had been utilized. Any advances under the FHLB
facility must be collateralized with qualifying collateral, which at March 31,
2003 consisted of non-pledged investment securities and FHLB stock. We believe
that our existing stable base of core deposits and other funding sources along
with continued growth in our deposit base, are adequate to meet our operating
needs and we are not aware of any events which may result in a significant
adverse impact on liquidity.



                                       14
<PAGE>

Through the operations of our bank, we have made contractual commitments to
extend credit in the ordinary course of our business activities. These
commitments are legally binding agreements to lend money to our customers at
predetermined interest rates for a specified period of time. At March 31, 2003,
we had issued commitments to extend credit of $7.5 million through various types
of commercial lending arrangements (principally unfunded lines of credit). We
evaluate each customer's credit worthiness on a case-by-case basis. The amount
of collateral obtained, if deemed necessary by us upon extension of credit, is
based on our credit evaluation of the borrower. Collateral varies but may
include accounts receivable, inventory, property, plant and equipment,
commercial and residential real estate. We manage the credit risk on these
commitments by subjecting them to normal underwriting and risk management
processes

The bank has a five-year contract for data processing services through April
2004. Costs under this contract are approximately $10,500 per month.

Capital Adequacy
----------------
Shareholders' equity was $8.8 million at March 31, 2003 and $8.8 million at
December 31, 2002. The Federal Reserve Board and bank regulatory agencies
require bank holding companies and financial institutions to maintain capital at
adequate levels based on a percentage of assets and off-balance sheet exposures,
adjusted for risk weights ranging from 0% to 100%.

The Federal Reserve guidelines also contain an exemption from the capital
requirements for bank holding companies with less than $150 million in
consolidated assets. Because we have less than $150 million in assets, our
holding company is not currently subject to these guidelines. However, the bank
falls under these rules as set by bank regulatory agencies.

Under the capital adequacy guidelines, capital is classified into two tiers.
Tier 1 capital consists of common shareholders' equity, excluding the unrealized
gain or loss on securities available for sale, minus certain intangible assets.
Tier 2 capital consists of the general reserve for loan losses subject to
certain limitations. The qualifying capital base for purposes of the risk-based
capital ratio consists of the sum of its Tier 1 and Tier 2 capital. The bank is
also required to maintain capital at a minimum level based on total average
assets, which is known as the Tier 1 leverage ratio. The bank exceeded the
minimum capital requirements set by the regulatory agencies at March 31, 2003.
Below is a table that reflects the leverage and risk-based regulatory capital
ratios of the bank at March 31, 2003.

<TABLE>
<CAPTION>
                                    Required
                                     amount          Required      Actual amount       Actual
                                   (in $000's)       Percent        (in $000's)       Percent
                                  --------------    -----------    --------------    -----------
<S>                                  <C>                <C>            <C>               <C>
Total capital                        $4,149             8.0%           7,629             14.7%
Tier 1 capital                        2,075             4.0            7,095             13.7
Tier 1 leverage capital               2,384             4.0            7,095             11.9
</TABLE>

Impact of Inflation

The assets and liabilities of financial institutions such as ours are primarily
monetary in nature. Therefore, interest rates have a more significant effect on
our performance than do the effects of changes in the general rate of inflation
and changing prices. In addition, interest rates do not necessarily move in the
same direction or in the same magnitude as the prices of goods and services. As
discussed previously, management seeks to manage the relationships between
interest-sensitive assets and liabilities in order to protect against wide
interest rate fluctuations, including those, which may result from inflation.

Recently Issued Accounting Standards

Accounting standards that have been issued or proposed that do not require
adoption until a future date are not expected to have a material impact on the
consolidated financial statements upon adoption.



                                       15
<PAGE>


Item 3. Controls and Procedures
-------------------------------

     Within 90 days prior to the date of this report, we carried out an
evaluation, under the supervision and with the participation of our principal
executive officer and principal financial officer, of the effectiveness of the
design and operation of our disclosure controls and procedures. Based on this
evaluation, our principal executive officer and principal financial officer
concluded that our disclosure controls and procedures are effective in timely
alerting them to material information required to be included in our periodic
SEC reports. The design of any system of controls is based in part upon certain
assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions, regardless of how remote.

     In addition, we reviewed our internal controls, and there have been no
significant changes in our internal controls or in other factors that could
significantly affect those controls subsequent to the date of their last
evaluation.




                                       16
<PAGE>



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

Item 1. Legal Proceedings
-------------------------

There are no material pending legal proceedings to which we or our subsidiary is
party to or which any of their property is the subject.

Item 2. Changes in Securities
-----------------------------

Not Applicable.

Item 3. Defaults upon Senior Securities
---------------------------------------

Not Applicable.

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

There were no matters submitted to a vote of security holders during the quarter
ended March 31, 2003.

Item 5. Other Information
-------------------------

None.

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

(a) Exhibits:

99.1     Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
         to Section 906 of the Sarbanes-Oxley Act of 2002.

(b) Reports on Form 8-K.

The following reports were filed on Form 8-K during the first quarter ended
March 31, 2003.

         99.1 The Company filed a Form 8-K on March 28, 2003 to disclose that
              the Chief Executive Officer, Frank W. Wingate, and the Chief
              Financial Officer, R. Lamar Simpson, each furnished to the SEC the
              certification required pursuant to 18 U.S.C. Section 1350, as
              adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.






                                       17
<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.


                                   NEW COMMERCE BANCORP
                                   --------------------
                                   (Registrant)


Date:    May 14, 2003              By: /s/ Frank W. Wingate
                                      -----------------------------------
                                      Frank W. Wingate
                                      President and Chief Executive Officer



Date:    May 14, 2003              By:  /s/ R. Lamar Simpson
                                      -----------------------------------
                                      R. Lamar Simpson
                                      Senior Vice President and Chief Financial
                                      Officer



                                       18
<PAGE>



                                  Certification

I, Frank W. Wingate, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of New Commerce BanCorp;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiary, is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
         and procedures as of a date within 90 days prior to the filing date of
         this quarterly report (the "Evaluation Date"); and

         c) presented in this quarterly report our conclusions about the
         effectiveness of the disclosure controls and procedures based on our
         evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

         a) all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

         b) any fraud, whether or not material, that involves management or
         other employees who have a significant role in the registrant's
         internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date:    May 14, 2003              By: /s/ Frank W. Wingate
                                      -----------------------------------
                                      Frank W. Wingate
                                      President and Chief Executive Officer



                                       19
<PAGE>


                                  Certification

I, R. Lamar Simpson, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of New Commerce BanCorp;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiary, is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
         and procedures as of a date within 90 days prior to the filing date of
         this quarterly report (the "Evaluation Date"); and

         c) presented in this quarterly report our conclusions about the
         effectiveness of the disclosure controls and procedures based on our
         evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

         a) all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

         b) any fraud, whether or not material, that involves management or
         other employees who have a significant role in the registrant's
         internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date:    May 14, 2003              By:  /s/ R. Lamar Simpson
                                      -----------------------------------
                                      R. Lamar Simpson
                                      Senior Vice President and Chief Financial
                                      Officer




                                       20