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:  June  30,  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  August  5, 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)


                                                  June 30,    December 31,
                                                    2002          2001
                                                 -----------  -------------
<S>                                              <C>          <C>
                             ASSETS
Cash and due from banks                          $ 1,946,688  $   1,415,318
Federal funds sold                                 3,324,429      4,831,188
Investment in Federal Home Loan Bank stock           431,500        431,500
Investment securities available-for-sale           5,534,341      5,931,871
Loans held for sale                                  352,500        622,000
Loans, less allowance for credit losses of
  $818,237 and $750,768, respectively             66,522,909     63,044,907
Premises and equipment, net                        1,575,031      1,624,379
Accrued interest receivable                          414,885        432,134
Bank Owned Life Insurance Policy                   1,306,576      1,281,871
Other assets                                         172,538        135,173
Deferred and prepaid income taxes                      5,863         70,262
                                                 -----------  -------------
      Total assets                               $81,587,260  $  79,820,603
                                                 ===========  =============

              LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Noninterest-bearing                            $10,026,495  $   6,600,971
  Interest-bearing                                63,105,617     64,854,285
                                                 -----------  -------------
      Total deposits                              73,132,112     71,455,256
Accrued interest payable                              93,730        112,507
Securities sold under agreements to repurchase        64,933         65,486
Note payable                                       2,219,072      2,222,875
Other liabilities                                    154,971        149,775
                                                 -----------  -------------
      Total liabilities                           75,664,818     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                                  578,799        496,104
                                                 -----------  -------------
                                                   5,862,318      5,779,623
  Accumulated other comprehensive income              60,124         35,081
                                                 -----------  -------------
      Total stockholders' equity                   5,922,442      5,814,704
                                                 -----------  -------------
  Total liabilities and stockholders' equity     $81,587,260  $  79,820,603
                                                 ===========  =============
</TABLE>

See  accompanying  Notes  to  Consolidated  Financial  Statements.


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


                                         Three Months Ended        Six Months Ended
                                               June 30,                June 30,
                                     -------------------------  ----------------------
                                         2002          2001        2002        2001
                                     -------------  ----------  ----------  ----------
<S>                                  <C>            <C>         <C>         <C>
Interest revenue
  Loans, including fees              $   1,194,376  $1,293,785  $2,365,438  $2,536,244
  Investment securities                     67,770      56,903     139,917     132,551
  Due from banks                               -0-         185         -0-         496
  Federal funds sold                        20,659      33,440      28,800      64,339
                                     -------------  ----------  ----------  ----------
      Total interest revenue             1,282,805   1,384,313   2,534,155   2,733,630

Interest expense                           502,788     705,325   1,029,431   1,386,259
                                     -------------  ----------  ----------  ----------
      Net interest income                  780,017     678,988   1,504,724   1,347,371

Provision for loan losses                   53,088      56,034     105,903     104,388
                                     -------------  ----------  ----------  ----------
      Net interest income after
        provision for loan losses          726,929     622,954   1,398,821   1,242,983
                                     -------------  ----------  ----------  ----------

Other operating revenue                    164,874     127,543     288,419     247,377
                                     -------------  ----------  ----------  ----------

Other expenses
  Salaries and benefits                    370,869     358,692     732,390     700,764
  Occupancy                                 37,342      39,816      74,077      73,577
  Furniture and equipment                   35,304      28,859      72,477      57,964
  Other operating                          225,790     203,723     403,305     370,229
                                     -------------  ----------  ----------  ----------
      Total operating expenses             669,305     631,090   1,282,249   1,202,534
                                     -------------  ----------  ----------  ----------

Income before income taxes                 222,498     119,407     404,991     287,826

Income taxes                                84,200      43,692     154,200     111,692
                                     -------------  ----------  ----------  ----------

Net income                           $     138,298  $   75,715  $  250,791  $  176,134
                                     =============  ==========  ==========  ==========

Earnings per common share - basic    $        0.25  $     0.14  $     0.45  $     0.31
                                     =============  ==========  ==========  ==========

Earnings per common share - diluted  $        0.24  $     0.14  $     0.44  $     0.31
                                     =============  ==========  ==========  ==========
</TABLE>

See  accompanying  Notes  to  Consolidated  Financial  Statements.


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

                                                         Six Months Ended
                                                              June 30,
                                                    --------------------------
                                                        2002          2001
                                                    ------------  ------------
<S>                                                 <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Interest received                                 $ 2,583,854   $ 2,702,223
  Fees, commissions and rent received                   217,660       242,076
  Cash paid for operating expenses                   (1,153,895)   (1,088,286)
  Proceeds from loan sales                            6,386,332     6,814,377
  Loans originated for sale                          (6,116,832)   (7,396,360)
  Interest paid                                      (1,072,913)   (1,413,473)
  Taxes paid                                           (111,261)     (167,472)
                                                    ------------  ------------
                                                        732,945      (306,915)
                                                    ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash paid for premises, equipment and software        (31,855)      (46,659)
  Net loans to customers                             (3,595,399)   (5,293,829)
  Proceeds from sales/maturities of investments       1,019,393     3,835,611
  Purchase of investment securities                    (604,877)   (2,427,185)
  Purchase of Federal Home Loan Bank stock                  -0-      (227,300)
  Investment in life insurance contract                     -0-    (1,225,000)
                                                    ------------  ------------
                                                     (3,212,738)   (5,384,362)
                                                    ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in time deposits                       3,568,058     6,295,595
  Net increase (decrease) in other deposits          (1,891,202)      452,910
  Dividends Paid                                       (168,096)      (56,031)
  Net decrease in securities sold under agreements
    to repurchase                                          (553)      (32,467)
  Net proceeds from borrowings                           (3,803)      996,454
                                                    ------------  ------------
                                                      1,504,404     7,656,461
                                                    ------------  ------------

NET INCREASE (DECREASE) IN CASH                        (975,389)    1,965,184
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD      6,246,506     2,527,563
                                                    ------------  ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD          $ 5,271,117   $ 4,492,747
                                                    ============  ============
</TABLE>


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

                                                        Six Months Ended
                                                            June 30,
                                                     -----------------------
                                                        2002        2001
                                                     ----------  -----------
<S>                                                  <C>         <C>
RECONCILIATION OF NET INCOME TO NET CASH
    PROVIDED (USED) FROM OPERATING ACTIVITIES
  Net income                                         $ 250,791   $  176,134
  Adjustments to reconcile net income to net cash
  provided (used) from operating activities:
      Depreciation and amortization                     72,570       63,412
      Provision for loan losses                        105,903      104,388
      Increase in cash surrender value of insurance    (24,705)     (25,850)
      Loan sales net proceeds                          269,500     (581,983)
      (Increase) in accrued interest receivable
        and other assets                               (11,483)     (50,303)
      (Decrease) in operating accounts payable and
        other liabilities                               (5,020)     (15,749)
      Deferred loan origination fees                    11,494       (1,911)
      Accrued Income taxes net of prepaid taxes         42,939       28,125
      Investment amortization, net of accretion         20,956       (3,178)
                                                     ----------  -----------
                                                     $ 732,945    ($306,915)
                                                     ==========  ===========
</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
six  months  ended  June 30, 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
     ---------------------

          Comprehensive income consists of:

                                                            Six Months Ended
                                                                June  30,
                                                         ----------------------
                                                           2002          2001
                                                         --------      --------
          Net Income                                     $250,791      $176,134
          Unrealized  gain  on  investment securities
          available for sale, net of income taxes          25,042        36,145
                                                         --------      --------
          Comprehensive  Income                          $275,833      $212,279
                                                         ========      ========


                                        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,  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 June 30, 2002, was
$138,298,  compared  to  $75,715  during  the corresponding period of 2001.  Net
income  for  the  six  months  ended  June  30,  2002, was $250,791, compared to
$176,134  for  the  corresponding  period  of  2001.

     Net interest income increased $157,353 and other operating income increased
$41,042;  however,  these increases were offset by increases of $79,715 in total
operating  expenses  and  $42,508  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 $356,828 and a decrease in interest earned of
$199,475.  The increase in total operating expenses is attributed to an increase
in  salaries  and  benefits  of approximately $31,626, an increase of $15,013 in
occupancy,  furniture  and equipment and an increase in other operating expenses
of $33,076 due primarily to the Oxford branch which was opened in November 2001.


                                        6
<PAGE>
     The  following  table depicts interest income on earning assets and related
average  yields  as well as interest expense on interest-bearing liabilities and
related  average rates paid for the six months ended June 30, 2002, and the year
ended  December  31,  2001:


<TABLE>
<CAPTION>
                                                 CONSOLIDATED                   CONSOLIDATED
                                       -------------------------------  -------------------------------
                                               AVERAGE BALANCES,              AVERAGE BALANCES,
                                              INTEREST, AND YIELDS           INTEREST, AND YIELDS
                                           For the Six Months Ended           For the Year Ended
                                                 June 30, 2002                December 31, 2001
                                       -------------------------------  -------------------------------
                                         Average                          Average
                                         balance     Interest   Yield     balance     Interest   Yield
                                       -----------  ----------  ------  -----------  ----------  ------
<S>                                    <C>          <C>         <C>     <C>          <C>         <C>
ASSETS
Federal funds sold                     $ 3,452,898  $   28,800   1.66%  $ 2,954,612  $  111,011   3.76%
Interest-bearing deposits                        -           -      -        14,185         520   3.67%
Investment securities:
   State municipal bonds                    59,647       1,926   6.42%            -           -      -
   U.S. government agency                5,519,405     129,823   4.68%    4,340,131     247,076   5.69%
   Other                                   431,500      12,899   6.03%      407,241      28,726   7.05%
                                       -----------  ----------  ------  -----------  ----------  ------
      Total investment securities        6,010,552     144,648   4.79%    4,747,372     275,802   5.81%
                                       -----------  ----------  ------  -----------  ----------  ------
Loans:
   Demand and time                      16,516,452     534,716   6.53%   14,348,935   1,156,761   8.06%
   Mortgage                             45,050,239   1,656,591   7.42%   41,727,127   3,538,811   8.48%
   Installment                           3,853,700     175,525   9.18%    3,921,552     370,998   9.46%
                                       -----------  ----------  ------  -----------  ----------  ------
      Total loans                       65,420,391   2,366,832   7.30%   59,997,614   5,066,570   8.44%
Allowance for loan losses                  788,678                          692,655
                                       -----------                      -----------
      Total loans, net of allowance     64,631,713   2,366,832   7.38%   59,304,959   5,066,570   8.54%
                                       -----------  ----------  ------  -----------  ----------  ------
Total interest-earning assets           74,095,163   2,540,280   6.91%   67,021,128   5,453,903   8.14%
                                       -----------  ----------  ------  -----------  ----------  ------
Noninterest-bearing cash                 2,027,064                        1,242,388
Bank premises and equipment              1,650,155                        1,644,342
Other assets                             1,834,348                        1,747,942
                                       -----------                      -----------
        Total assets                   $79,606,731                      $71,655,800
                                       ===========                      ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
  Savings and NOW deposits             $14,833,103  $   89,938   1.22%  $10,714,080  $  203,333   1.90%
  Money market deposits                  6,817,083      43,789   1.30%    9,278,602     226,973   2.45%
  Other time deposits                   41,549,430     837,399   4.06%   38,091,737   2,139,492   5.62%
                                       -----------  ----------  ------  -----------  ----------  ------
     Total interest-bearing deposits    63,199,616     971,126   3.10%   58,084,419   2,569,798   4.42%
Noninterest-bearing deposits             7,364,685           -      -     5,625,745           -      -
                                       -----------  ----------  ------  -----------  ----------  ------
    Total deposits                      70,564,301     971,126   2.78%   63,710,164   2,569,798   4.03%
Borrowed funds                           2,907,075      58,359   3.99%    1,987,899     101,707   5.12%
                                       -----------  ----------  ------  -----------  ----------  ------
                                        73,471,376   1,029,485   2.83%   65,698,063   2,671,505   4.07%
                                                    ----------  ------               ----------  ------
Other liabilities                          317,351                          373,538
Stockholders' equity                     5,818,004                        5,584,199
                                       -----------                      -----------
        Total liabilities and
        stockholders' equity           $79,606,731                      $71,655,800
                                       ===========                      ===========

Net interest spread                                              4.09%                            4.07%
                                                                ======                           ======
Net interest income                                 $1,510,795                       $2,782,398
                                                    ==========                       ==========
Net margin on interest-earning assets                            4.11%                            4.15%
                                                                ======                           ======
</TABLE>

     -------------------------------
     Interest  on  tax-favored  investments  and  loans  are reported on a fully
     taxable  equivalent  basis.


                                        7
<PAGE>
     The  Bank's  loan  portfolio (excluding loans held for sale) increased from
     $63.0  million at December 31, 2001, to $66.5 million at June 30, 2002. The
Bank's  provision  for  loan  losses  was $53,088 for the quarter ended June 30,
2002,  and  $105,903 for the six months ended June 30, 2002, compared to $56,034
for  the quarter ended June 30, 2001, and $104,388 for the six months ended June
30,  2001.

     The  allowance  for  loan losses was $818,237 at June 30, 2002, or 1.22% of
total  loans (excluding loans for sale), compared to $801,392 at March 31, 2002,
or  1.25%  of  total loans, and $750,768 at December 31, 2001, or 1.18% of total
loans.  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.

     Activity  in  the  allowance  for  loan  losses  is  shown  below:

<TABLE>
<CAPTION>

                   ALLOWANCE FOR LOAN LOSSES

                                              June 30,   December 31,
                                                2002        2001
                                              ---------  ----------
<S>                                           <C>        <C>
Balance at beginning of year                  $750,768   $ 645,501

Loan Losses:
    Commercial                                  27,795      19,537
    Real Estate                                  8,000      71,492
    Consumer                                    17,731     104,442
                                              ---------  ----------
      Total loan losses                         53,526     195,471
                                              ---------  ----------

Recoveries on loans previously charged off
    Commercial                                   2,025         200
    Real Estate                                      0      64,550
    Consumer                                    13,067      23,042
                                              ---------  ----------
      Total loan recoveries                     15,092      87,792
                                              ---------  ----------

Net loan losses                                (38,434)   (107,679)
Provision for loan losses charged to expense   105,903     212,946
                                              ---------  ----------
Balance at end of year                        $818,237   $ 750,768
                                              =========  ==========

Allowance for loan losses to outstanding          1.21%       1.18%
  loans at end of period

Net charge-offs/(recoveries) to average
  loans - annualized                              0.12%       0.18%
</TABLE>


                                        8
<PAGE>
<TABLE>
<CAPTION>
                    NON-PERFORMING ASSETS AND PAST-DUE LOANS

      Nonaccrual loans and loans past due 90 days or more are as follows:


                                     June 30,   December 31,
                                       2002         2001
                                     ---------  -------------
<S>                                  <C>        <C>
Nonaccrual
  Commercial                         $ 144,003  $     116,106
  Mortgage                             340,949        213,355
  Installment                           12,357         23,585
                                     ---------  -------------
                                     $ 497,309  $     353,046
                                     ---------  -------------

Loans past due ninety days or more,
  still accruing interest            $ 277,513  $     747,907
                                     ---------  -------------

Total nonperforming loans            $ 774,822  $   1,100,953
                                     ---------  -------------

Interest not accrued                 $  21,450  $      19,654
                                     ---------  -------------
</TABLE>

     Noninterest  expense  increased  $38,215  to $669,305 for the quarter ended
June  30, 2002, from $631,090 for the quarter ended June 30, 2001.  The increase
was  primarily  related to the increases in salaries and benefits of $12,177 and
an  increase  in  other operating expenses of $22,067.  The increase in salaries
and  benefits  was  due  to  annual  salary  increases.

     Return  on  average  assets and average equity, on an annualized basis, for
the  quarter ended June 30, 2002, was .78% and 10.85%, respectively, compared to
..52%  and  6.08%, respectively, for the same quarter of 2001.  Return on average
assets and average equity, on an annualized basis, for the six months ended June
30,  2002,  was  .67%  and  9.32%,  respectively,  compared  to  .56% and 7.40%,
respectively,  for  the  same  quarter  of  2001.  Earnings per share on a fully
diluted  basis  for the quarter and the six months ended June 30, 2002, was $.24
and  $.44,  respectively,  compared to $.14 and $.31, respectively, for the same
periods  of  2001.

     The  Company's assets ended the second quarter of 2002 at $81.6 million, an
increase of $1.8 million, or 2.2%, from $79.8 million at December 31, 2001. This
increase can be attributed primarily to an increase in the Bank's loan portfolio
of  $3.2  million  offset  by  a decrease in federal funds sold of $1.5 million.
Total  borrowings  from the Federal Home Loan Bank of Atlanta were approximately
$2.2  million  at  June 30, 2002, of which $1.6 million were match funded on two
loans  by  the  Bank.

     Management  expects  that  its  2002  income will exceed expenses. Although
management  expects  that  the  Company's  current  profitability 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  $1.7  million increase in deposits from December 31, 2001, to June 30,
2002, is primarily reflected in the increase in the Bank's loans of $3.2 million
offset  by  a  decrease  in  federal  funds sold of $1.5 million.  The Company's
primary  source  of  liquidity  is cash on hand plus short-term investments.  At
June  30,  2002, the Company's liquid assets totaled $11.2 million, or 13.68% 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


                                        9
<PAGE>
million  is  currently  used,  and the $750,000 unsecured line of credit and the
$5.0  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. Since the purchase of the policy,
the  cash  surrender value of the policy has increased approximately $82,000 and
is  now  approximately $1,306,576. The cash surrender value of the policy 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  June  30,  2002.  At June 30, 2002, the Tier 1 leverage
ratio  for  the  Bank was 7.16%.  At June 30, 2002, the Bank had a risk-weighted
total capital ratio of 9.99%, and a Tier 1 risk-weighted capital ratio of 8.74%.
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 as
of  January  31,  2002. The dividend was paid on February 15, 2002. On April 29,
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 as of
April  30,  2002.  The  dividend was paid on May 15, 2002. On July 29, 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 as of July 31,
2002. The dividends will be paid on August 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 an increase in net
interest  income  of  $47,721 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.


                                       10
<PAGE>
                                    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.

     The  Company  held  its  Annual Meeting of Stockholders on May 15, 2002, at
which meeting all eight of management's nominees for the Board of Directors were
re-elected, with six individuals re-elected to serve as Class II directors for a
three-year term and two individuals re-elected to serve as Class I directors for
a  two-year  term.  The  individuals  re-elected as Class II directors were:  J.
Parker  Callahan,  Jr.,  receiving  427,951 votes for and 4,400 votes against or
withheld,  with  no  votes  abstaining;  J.  Fredrick  Heaton, D.M.D., receiving
427,951 votes for and 4,400 votes against or withheld, with no votes abstaining;
William  C.  Hill,  receiving  427,851  votes  for  and  4,500  votes against or
withheld,  with no votes abstaining; William R. Houck, D.D.S., receiving 427,751
votes  for  and 4,600 votes against or withheld, with no votes abstaining; Roger
A.  Orsini,  M.D.,  receiving  427,951  votes  for  and  4,400  votes against or
withheld,  with  no votes abstaining; and James B. Spear, Sr., receiving 427,851
votes  for  and  4,500  votes against or withheld, with no votes abstaining. The
individuals  re-elected  to  serve  a  two-year  term as Class I directors were:
Stephen  W.  Chitty,  receiving  427,751  votes  for  and 4,600 votes against or
withheld,  with no votes abstaining, and Thomas E. Hill, receiving 427,851 votes
for  and 4,500 votes against or withheld, with no votes abstaining.  Class I and
Class  III directors continuing in office are:  Jack H. Bishop, D.D.S., W. David
Hill,  D.D.S., David F. Lesperance, Vinodrai Mehta, M.D., R. Michael S. Menzies,
Sr.,  Mahmood  S.  Shariff,  M.D.,  Myron  J.  Szczukowski, Jr., M.D., Sheila A.
Wainwright  and  Jerry  L.  Wilcoxon,  C.P.A.

ITEM 5.  OTHER  INFORMATION.

        None.

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

        (a)  Exhibits.

             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 June 30, 2002.


                                       11
<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:   August 12, 2002            By:  /s/ R. Michael S. Menzies, Sr.
        ---------------            ---------------------------------------------
                                                R. Michael S. Menzies, Sr.
                                                President



Date:   August 12, 2002            By:  /s/  Pamela  A.  Mussenden
        ---------------            ---------------------------------------------
                                                Pamela A. Mussenden
                                                Assistant Treasurer
                                                (Principal Financial Officer)


                                       12
<PAGE>
                                INDEX TO EXHIBITS

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

          11.1          Computation  of  Earnings  Per  Share.


                                       13
<PAGE>