U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                   FORM 10-QSB

(Mark One)

 X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT  OF  1934
     For  the  quarterly  period  ended:  March  31,  2002
                                         -----------------

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

                       Commission file number:  33-43317
                                               ----------

                              EASTON BANCORP, INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


             Maryland                                 52-1745344
      ------------------------             -----------------------------------
      (State of incorporation)             (I.R.S. Employer Identification No.)


                  501 Idlewild Avenue, Easton, Maryland  21601
                  --------------------------------------------
                    (Address of principal executive offices)

                                 (410) 819-0300
                            -------------------------
                           (Issuer's telephone number)

                                 Not Applicable
  ------------------------------------------------------------------------------
    (Former name, former address and former fiscal year, if changed since last
                                     report)


     Check  whether  the  issuer:  (1) 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
    ---      ---

     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  the  latest  practicable  date:

     On May 6, 2002, 560,318 shares of the issuer's common stock, par value $.10
per  share,  were  issued  and  outstanding.

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


<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL  STATEMENTS.

<TABLE>
<CAPTION>
                       EASTON BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)


                                                        March 31,   December 31,
                                                          2002         2001
                                                       -----------  -----------
<S>                                                    <C>          <C>
                                   ASSETS
Cash and due from banks                                $ 1,894,518  $ 1,415,318
Federal funds sold                                       3,522,277    4,831,188
Investment in Federal Home Loan Bank stock                 431,500      431,500
Investment securities available for sale                 5,269,951    5,931,871
Loans held for sale                                      1,451,497      622,000
Loans, less allowance for credit losses of
  $801,392 and $750,768 respectively                    63,325,804   63,044,907
Premises and equipment, net                              1,606,959    1,624,379
Accrued interest receivable                                429,932      432,134
Bank Owned Life Insurance Policy                         1,292,176    1,281,871
Other assets                                               166,374      135,173
Deferred income taxes                                       11,860       70,262
                                                       -----------  -----------
           Total assets                                $79,402,848  $79,820,603
                                                       ===========  ===========

                   LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Noninterest-bearing                                  $ 6,344,218  $ 6,600,971
  Interest-bearing                                      64,625,500   64,854,285
                                                       -----------  -----------
           Total deposits                               70,969,718   71,455,256
Accrued interest payable                                   149,537      112,507
Securities sold under agreements to repurchase              70,342       65,486
Note payable                                             2,220,990    2,222,875
Other liabilities                                          227,659      149,775
                                                       -----------  -----------
           Total liabilities                            73,638,246   74,005,899
                                                       -----------  -----------

Stockholders' equity
  Common stock, par value $.10 per share;
    authorized 5,000,000 shares; 560,318
    shares issued and outstanding                           56,032       56,032
  Additional paid-in-capital                             5,227,487    5,227,487
  Retained earnings                                        468,517      496,104
                                                       -----------  -----------
                                                         5,752,036    5,779,623
  Accumulated other comprehensive income                    12,566       35,081
                                                       -----------  -----------
           Total stockholders' equity                    5,764,602    5,814,704
                                                       -----------  -----------
           Total liabilities and stockholders' equity  $79,402,848  $79,820,603
                                                       ===========  ===========
</TABLE>


     See accompanying Notes to Consolidated Financial Statements.


                                        1
<PAGE>
<TABLE>
<CAPTION>
                      EASTON BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)


                                                          Three Months Ended
                                                               March 31,
                                                         ----------------------
                                                           2002        2001
                                                         ----------  ----------
<S>                                                      <C>         <C>
Interest revenue
  Loans, including fees                                  $1,171,062  $1,242,459
  Investment securities                                      72,147      75,648
  Due from banks                                                -0-         311
  Federal funds sold                                          8,141      30,899
                                                         ----------  ----------
    Total interest revenue                                1,251,350   1,349,317

Interest expense                                            526,643     680,934
                                                         ----------  ----------
    Net interest income                                     724,707     668,383

Provision for loan losses                                    52,815      48,354
                                                         ----------  ----------
    Net interest income after
      provision for loan losses                             671,892     620,029
                                                         ----------  ----------
Other operating revenue                                     123,545     119,834
                                                         ----------  ----------
Other expenses
  Salaries and benefits                                     361,521     342,072
  Occupancy                                                  36,735      33,761
  Furniture and equipment                                    37,173      29,105
  Other operating                                           177,515     166,506
                                                         ----------  ----------
    Total operating expenses                                612,944     571,444
                                                         ----------  ----------

Net income before income taxes                              182,493     168,419

Income taxes                                                 70,000      68,000
                                                         ----------  ----------

Net income                                               $  112,493  $  100,419
                                                         ==========  ==========

Earnings per common share - basic                        $     0.20  $     0.18
                                                         ==========  ==========

Earnings per common share - diluted                      $     0.20  $     0.18
                                                         ==========  ==========
</TABLE>

See accompanying Notes to Consolidated Financial Statements.


                                        2
<PAGE>
<TABLE>
<CAPTION>
                      EASTON BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)


                                                    Three Months Ended
                                                          March 31,
                                                  --------------------------
                                                      2002          2001
                                                  ------------  ------------
<S>                                               <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Interest received                               $ 1,263,201   $ 1,332,928
  Other revenue received                              123,545       109,720
  Cash paid for operating expenses                   (510,166)     (555,460)
  Interest paid                                      (499,918)     (639,020)
  Loans originated for sale                        (3,106,292)   (3,520,190)
  Proceeds from loan sales                          2,276,795     3,625,300
  Taxes Paid                                           (8,561)      (15,099)
                                                  ------------  ------------
                                                     (461,396)      338,179
                                                  ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash paid for premises and equipment                (15,623)      (10,329)
  Net loans to customers                             (332,975)   (1,836,575)
  Investment securities purchased                    (104,877)   (1,377,300)
  Proceeds from sales/maturities of investments       722,297     2,052,172
  Cash Paid for Software                              (14,490)      (22,048)
  Investment in Life Insurance Contract                    -0-    (1,225,000)
                                                  ------------  ------------
                                                      254,332    (2,419,080)
                                                  ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in time deposits                     4,450,879     3,904,727
  Net increase (decrease) in other deposits        (4,936,417)    1,140,027
  Net increase (decrease) in securities sold
    under agreements to repurchase                      4,856       (41,116)
  Other Borrowings                                     (1,885)       (1,757)
  Dividends Paid                                     (140,080)      (28,015)
                                                  ------------  ------------
                                                     (622,647)    4,973,866
                                                  ------------  ------------

NET INCREASE (DECREASE) IN CASH                      (829,711)    2,892,965
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD    6,246,506     2,527,563
                                                  ------------  ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD        $ 5,416,795   $ 5,420,528
                                                  ============  ============
</TABLE>


                                        3
<PAGE>
<TABLE>
<CAPTION>
                      EASTON BANCORP, INC. AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                                  (Unaudited)



RECONCILIATION OF NET INCOME TO NET CASH
 PROVIDED (USED) IN OPERATING ACTIVITIES
<S>                                                      <C>         <C>
Net income                                               $ 112,493   $100,419
 Adjustments to reconcile net income to net cash
   Provided (used) in operating activities:
     Depreciation and amortization                          36,005     31,103
     Provision for loan losses                              52,815     48,354
     Loan sales net proceeds                              (829,497)   105,110
     (Increase) in cash surrender value of insurance       (10,305)   (10,340)
     Securities amortization/accretion, net                 10,386     (3,508)
     Deferred Income Taxes                                      -0-     68,000
     Accrued Income Taxes net of prepaid taxes              61,439    (15,099)
     (Increase) in accrued interest receivable
       and other assets                                    (17,470)   (22,374)
     Increase in operating accounts payable
       and other liabilities                               123,475     41,383
     Decrease in deferred loan origination fees               (737)    (4,869)
                                                         ----------  ---------
                                                         $(461,396)  $338,179
                                                         ==========  =========
</TABLE>

See accompanying Notes to Consolidated Financial Statements.


                                        4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

1.   Basis  of  Presentation
     -----------------------

     The  accompanying  unaudited  condensed  financial  statements  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with the instructions to Form 10-QSB and Item 310(b)
of  Regulation S-B of the Securities and Exchange Commission.  Accordingly, they
do  not include all 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) considered
necessary  for a fair presentation have been included. Operating results for the
three months ended March 31, 2002, are not necessarily indicative of the results
that  may  be  expected  for  the  year  ended  December  31, 2002.  For further
information,  refer  to  the  consolidated  financial  statements  and footnotes
thereto  for  the Company's fiscal year ended December 31, 2001, included in the
Company's  Form  10-KSB  for  the  year  ended  December  31,  2001.

2.   Cash  Flows
     -----------

     For  purposes  of  reporting  cash flows, cash and cash equivalents include
cash  on  hand,  unrestricted  amounts  due from banks, overnight investments in
repurchase  agreements,  and  federal  funds  sold.


3.   Comprehensive  Income
     ---------------------

<TABLE>
<CAPTION>
     Comprehensive income consists of :

                                              Three Months Ended
                                                   March 31,
                                              ------------------------------
                                                2002       2001      2000
                                              ---------  --------  ---------
<S>                                           <C>        <C>       <C>
     Net Income                               $112,493   $100,419  $100,393
     Unrealized gain (loss) on investment
        securities available for sale net of
        income taxes                           (22,515)    34,794   (10,674)
                                              ---------  --------  ---------
     Comprehensive Income                     $ 89,978   $135,213  $ 89,719
                                              =========  ========  =========
</TABLE>


                                        5
<PAGE>
     This Report contains statements which constitute forward-looking statements
within  the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of  the Securities Exchange Act of 1934.  These statements appear in a number of
places in this Report and include all statements regarding the intent, belief or
current  expectations of the Company, its directors or its officers with respect
to, among other things: (i) the Company's financing plans; (ii) trends affecting
the  Company's financial condition or results of operations; (iii) the Company's
growth  strategy and operating strategy; and (iv) the declaration and payment of
dividends.  Investors are cautioned that any such forward-looking statements are
not  guarantees  of  future performance and involve risks and uncertainties, and
that  actual  results  may  differ  materially  from  those  projected  in  the
forward-looking  statements  as a result of various factors discussed herein and
those  factors  discussed in detail in the Company's filings with the Securities
and  Exchange  Commission.

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

     Easton  Bancorp,  Inc. (the "Company") was incorporated in Maryland on July
19,  1991,  to become a one-bank holding company by acquiring all of the capital
stock  of Easton Bank & Trust Company (the "Bank") upon its formation.  The Bank
commenced  business  on July 1, 1993, and the only activity of the Company since
then  has  been the ownership and operation of the Bank.  The Bank was organized
as  a nonmember state bank under the laws of the State of Maryland.  The Bank is
engaged  in  a general commercial banking business, emphasizing in its marketing
the  Bank's local management and ownership, from its main office location in its
primary  service  area, Talbot County, Maryland.  During 1999, the Bank opened a
full-service  branch  office  in  Denton, Maryland, which is in Caroline County.
In  addition,  during  2001,  the  Bank  opened  a full service branch office in
Oxford,  Maryland,  which  is  in Talbot County. The Bank offers a full range of
deposit services that are typically available in most banks and savings and loan
associations,  including  checking  accounts, NOW accounts, savings accounts and
other  time  deposits of various types, ranging from daily money market accounts
to  longer-term  certificates  of deposit.  In addition, the Bank offers certain
retirement  account  services, such as Individual Retirement Accounts.  The Bank
offers  a full range of short-to medium-term commercial and personal loans.  The
Bank  also  originates  and  holds  or sells into the secondary market fixed and
variable rate mortgage loans and real estate construction and acquisition loans.
Other  bank  services  include  cash  management  services,  safe deposit boxes,
traveler's  checks,  debit  cards, direct deposit of payroll and social security
checks,  and  automatic  drafts  for  various  accounts.

     The  following  discussion  of  the  financial  condition  and  results  of
operations  of  the  Company  should  be  read in conjunction with the Company's
financial  statements  and  related  notes  and  other  statistical  information
included  elsewhere  herein.

Results  of  Operations
-----------------------

     Net  income  for the Company for the three months ended March 31, 2002, was
$112,493,  compared  to  $100,419  during  the corresponding period of 2001. Net
interest  income  increased $56,324 and other operating income increased $3,711;
however,  these  increases  were  offset by increases of $4,461 in provision for
loan  losses,  $41,500  in  total operating expenses and $2,000 in income taxes.
The  increase  in  net  interest  income  is primarily due to declining interest
rates,  which  resulted  in  a  decrease  in  interest expense of $154,291 and a
decrease  in  interest  earned  of  $97,967.  The  increase  in  total operating
expenses  is  primarily  attributed  to  an increase in salaries and benefits of
$19,449,  an  increase  of  $11,042 in occupancy, furniture and equipment and an
increase  in  other  operating  expenses  of  $11,009.

     The  Bank's  loan  portfolio (excluding loans held for sale) increased from
$63.0  million  at  December  31, 2001, to $63.3 million at March 31, 2002.  The
Bank's  provision  for  loan  losses was $52,815 for the quarter ended March 31,
2002,  compared  to $48,354 for the quarter ended March 31, 2001.  The allowance


                                        6
<PAGE>
for  loan  losses  was  $801,392  at  March  31,  2002,  or 1.25% of total loans
(excluding  loans  held for sale), compared to $750,768 at December 31, 2001, or
1.18%.  The  level  of  the  allowance  for  loan losses represents management's
current  estimate  of future losses in the loan portfolio; however, there can be
no  assurance  that  loan losses in future periods will not exceed the allowance
for  loan  losses  or  that  additional  increases  in the allowance will not be
required.

     Noninterest  expense  increased  $41,500  to $612,944 for the quarter ended
March  31,  2002,  from  $571,444  for  the  quarter  ended March 31, 2001.  The
increase  was  primarily  related  to  the increases in salaries and benefits of
$19,449,  an  increase  in  occupancy, furniture and equipment of $11,042 and an
increase  in  other operating expenses of $11,009.  The increase in salaries and
benefits  was  due  to annual salary increases and four new full-time employees.

     Return  on  average  assets and average equity, on an annualized basis, for
the quarter ended March 31, 2002, were .60% and 8.17%, respectively, compared to
..64%  and 7.89%, respectively, for the same quarter of 2001.  Earnings per share
on  a  fully  diluted basis for the quarters ended March 31, 2002, and March 31,
2001,  amounted  to  $.20  and  $.18,  respectively.

     The  Company's  assets  ended the first quarter of 2002 at $79.4 million, a
decrease  of  $417,755,  or  .5%,  from $79.8 million at December 31, 2001. This
decrease  can  be  attributed  primarily  to decreases in federal funds sold and
investment  securities  of  $1.3  million and $661,920, respectively, which were
offset  by  an  increase  of  $1.1 million in the Bank's loans.  Borrowings from
Federal  Home  Loan  Bank of Atlanta total $2.2 million of which $1.6 million is
match  funded  to  two  loans.

     Management  expects  that  its  2002 income will exceed expenses.  Although
management  expects  that the Company's current profitably will continue, future
events,  such  as  an  unanticipated  deterioration in the loan portfolio, could
reverse  this  trend.  Management's  expectations are based on management's best
judgment  and  actual  results will depend on a number of factors that cannot be
predicted  with  certainty  and  thus  fulfillment  of management's expectations
cannot  be  assured.

Liquidity  and  Sources  of  Capital
------------------------------------

     The  $485,538  decrease  in  deposits  from December 31, 2001, to March 31,
2002,  is  primarily  reflected  in  the  decreases  in  federal  funds sold and
investment  securities  available  for  sale  of  $1.3  million  and  $661,920,
respectively,  which were offset by increases in cash and due from banks and net
loans  of $479,200 and $1.1 million, respectively.  The Company's primary source
of  liquidity  is  cash on hand plus short-term investments.  At March 31, 2002,
the  Company's  liquid  assets totaled $12.1 million, or 15.29% of total assets,
compared  to  $12.8  million,  or  16.04% of total assets, at December 31, 2001.
Another  source  of  liquidity  is  the $11.2 million secured line of credit the
Company has from the Federal Home Loan Bank of Atlanta, of which $2.2 million is
used,  and the $750,000 unsecured line of credit and the $5 million secured line
of credit the Company has from another correspondent bank, of which $1.8 million
is  pledged.   If  additional  liquidity  is  needed,  the  Bank  will  sell
participations  in  its  loans.

     In January 2001, the Company invested in a bank owned life insurance policy
on  the life of Jeffrey N. Heflebower, an officer of the Bank. The beneficiaries
of the policy include both the Bank and certain heirs of Mr. Heflebower. To fund
the  policy,  the  Bank  contributed $1,225,000. The cash surrender value of the
policy,  which  was  $1,292,176 as of March 31, 2002, is not considered a liquid
asset  of the Company. The policy also provides supplemental retirement benefits
for  Mr.  Heflebower.

     The  capital of the Company and the Bank exceeded all prescribed regulatory
capital  guidelines  at  March 31, 2002.  At March 31, 2002, the Tier 1 leverage
ratio  for  the Bank was 7.35%.  At March 31, 2002, the Bank had a risk-weighted
total  capital  ratio  of  10.20%,  and  a Tier 1 risk-weighted capital ratio of


                                        7
<PAGE>
8.95%.  The  Company expects that its current capital and short-term investments
will  satisfy  the  Company's  cash  requirements  for  the  foreseeable future.
However, no assurance can be given in this regard as rapid growth, deterioration
in  the  loan quality or poor earnings, or a combination of these factors, could
change  the  Company's  capital  position  in a relatively short period of time.

Dividends
---------

     The Board of Directors declared a $0.05 per share cash dividend and a $0.20
per share special one time only dividend to be paid to shareholders of record on
January  31,  2002.  The  dividend  was paid on February 15, 2002.  On April 30,
2002,  the  Board  of  Directors declared a $0.05 per share cash dividend on the
Company's  outstanding  shares  of stock to be paid to shareholders of record on
April  30, 2002. The dividend will be paid on May 15, 2002.  The declaration and
payment  of  future  dividends  will  depend upon a number of factors, including
future  earnings,  financial  condition,  cash  needs,  and  general  business
conditions.  If  dividends  should be declared in the future, the amount of such
dividends  presently  cannot  be  estimated  and it cannot be known whether such
dividends  would  continue  for  future  periods.

Market  Risk
------------

     Net  interest income of the Company is one of the most important factors in
evaluating  the financial performance of the Company.  The Company uses interest
sensitivity  analysis  to  determine  the  effect of rate changes.  Net interest
income  is  projected  over  a  one-year  period  to  determine the effect of an
increase  or  decrease  in the prime rate of 100 basis points.  If prime were to
decrease  100  basis  points,  the  Company  would  experience a decrease in net
interest  income  of  $3,319  if all assets and liabilities maturing within that
period  were  adjusted  for  the rate change.  The sensitivity analysis does not
consider  the likelihood of these rate changes nor whether management's reaction
to  this  rate  change  would  be  to  reprice  its  loans  and  deposits.


                                    PART II
                                OTHER INFORMATION

ITEM 1. LEGAL  PROCEEDINGS.

     There are no material pending legal proceedings to which the Company or the
Bank  is  a  party  or  of  which  any  of  their  property  is  the  subject.

ITEM 2. CHANGES  IN  SECURITIES.

     None.

ITEM 3. DEFAULTS  UPON  SENIOR  SECURITIES.

     Not  applicable.

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

     There  were  no matters submitted to security holders for a vote during the
quarter  ended  March  31,  2002.

ITEM 5. OTHER  INFORMATION.

     None.


                                        8
<PAGE>
ITEM 6. EXHIBITS  AND  REPORTS  ON  FORM  8-K.

     (a)  Exhibits.

          3.1  Amended  and  Restated  Bylaws  of  the  Company (incorporated by
               reference  to  Exhibit 3.2 of the Company's Annual Report on Form
               10-KSB  filed  on  March  29,  2002,  for  the  fiscal year ended
               December  31,  2001).

          11.1 Computation of Earnings Per Share.

     (b)  Reports  on  Form  8-K.

          There  were  no  reports  on  Form 8-K filed by the Company during the
          quarter  ended  March  31,  2002.


                                        9
<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.

                                         EASTON  BANCORP, INC.
                                        ----------------------------------------
                                                 (Registrant)



Date:   May 6, 2002                  By:  /s/  R. Michael S. Menzies
       ------------                     ----------------------------------------
                                               R. Michael S. Menzies
                                               President



Date:  May 6, 2002                   By:  /s/ Pamela A. Mussenden
       -----------                      ----------------------------------------
                                              Pamela A. Mussenden
                                              Assistant Treasurer
                                              (Principal Financial Officer)


                                       10
<PAGE>
                                INDEX TO EXHIBITS


Exhibit                                                              Sequential
Number                            Description                       Page Number
------                            -----------                       -----------

3.1            Amended  and  Restated  Bylaws  of  the  Company
               (incorporated  by  reference  to  Exhibit 3.2 of
               the Company's Annual Report on Form 10-KSB filed
               on  March  29,  2002, for  the fiscal year ended
               December  31,  2001).

11.1           Computation  of  Earnings  Per  Share.


<PAGE>