UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                   FORM 10-QSB

(Mark  One)

 X   QUARTERLY  REPORT  UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
---
     OF  1934
     For  the  quarterly  period  ended:  September  30,  2003
                                         ---------------------

     TRANSITION  REPORT  UNDER  SECTION  13 OR 15(d) OF THE 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
     ---     ---

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check  whether  the  issuer  filed all documents and reports required to be
filed  by  Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities  under  a  plan  confirmed  by  a  court.
Yes        No
     ---       ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS

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

     On November 1, 2003, 764,507 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>
<TABLE>
<CAPTION>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

                       EASTON BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)


                                                    September 30,   December 31,
                                                         2003           2002
                                                    --------------  -------------
<S>                                                 <C>             <C>
                            ASSETS
Cash and due from banks                             $    3,504,436  $   2,361,869
Federal funds sold                                       5,201,590      1,233,376
Investment in Federal Home Loan Bank stock                 483,500        431,500
Investment securities available-for-sale                 5,727,207      5,040,366
Loans held for sale                                      2,736,131      4,193,610
Loans, less allowance for credit losses of
  $1,103,183 and $924,859, respectively                 77,454,345     71,465,781
Premises and equipment, net                              1,845,843      1,569,357
Accrued interest receivable                                398,514        420,941
Bank Owned Life Insurance Policy                         1,386,230      1,335,376
Deferred and prepaid income taxes                          300,069        131,416
Other assets                                               133,909        157,129
                                                    --------------  -------------
        Total assets                                $   99,171,774  $  88,340,721
                                                    ==============  =============

            LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Noninterest-bearing                               $   10,492,227  $   7,804,457
  Interest-bearing                                      73,637,583     66,339,109
                                                    --------------  -------------
        Total deposits                                  84,129,810     74,143,566
Accrued interest payable                                   120,185        110,480
Securities sold under agreements to repurchase                 -0-         60,964
Note payable                                             6,144,490      7,510,135
Other liabilities                                          283,713        280,963
                                                    --------------  -------------
        Total liabilities                               90,678,198     82,106,108
                                                    --------------  -------------

Stockholders' equity
  Common stock, par value $.10 per share;
    authorized 5,000,000 shares, 764,507 and
    565,833 shares, respectively, issued and
    outstanding                                             76,451         56,583
  Additional paid-in-capital                             7,248,958      5,282,086
  Retained earnings                                      1,130,456        821,778
                                                    --------------  -------------
                                                         8,455,865      6,160,447
  Accumulated other comprehensive income                    37,711         74,166
                                                    --------------  -------------
        Total stockholders' equity                       8,493,576      6,234,613
                                                    --------------  -------------
        Total liabilities and stockholders' equity  $   99,171,774  $  88,340,721
                                                    ==============  =============
</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       Nine Months Ended
                                               September 30,           September 30,
                                          ----------------------  ----------------------
                                             2003        2002        2003        2002
                                          ----------  ----------  ----------  ----------
<S>                                       <C>         <C>         <C>         <C>
Interest revenue
   Loans, including fees                  $1,315,111  $1,237,971  $3,917,072  $3,603,409
   Investment securities                      40,368      63,824     134,620     203,741
   Due from banks                                -0-         -0-         -0-         -0-
   Federal funds sold                         11,577      11,620      23,385      40,420
                                          ----------  ----------  ----------  ----------
            Total interest revenue         1,367,056   1,313,415   4,075,077   3,847,570

Interest expense                             483,644     478,489   1,458,249   1,507,920
                                          ----------  ----------  ----------  ----------

            Net interest income              883,412     834,926   2,616,828   2,339,650

Provision for loan losses                     39,528      53,088     156,598     158,991
                                          ----------  ----------  ----------  ----------

            Net interest income after
               provision for loan losses     843,884     781,838   2,460,230   2,180,659
                                          ----------  ----------  ----------  ----------

Other operating revenue                      228,277     151,197     651,013     439,616
                                          ----------  ----------  ----------  ----------

Other expenses
   Salaries and benefits                     535,786     396,652   1,480,063   1,129,042
   Occupancy                                  54,700      42,377     152,117     116,454
   Furniture and equipment                    37,610      35,232     110,718     107,709
   Other operating                           236,590     194,328     712,934     597,633
                                          ----------  ----------  ----------  ----------
            Total operating expenses         864,686     668,589   2,455,832   1,950,838
                                          ----------  ----------  ----------  ----------

Income before income taxes                   207,475     264,446     655,411     669,437

Income taxes                                  83,000     106,800     251,000     261,000
                                          ----------  ----------  ----------  ----------

Net income                                $  124,475  $  157,646  $  404,411  $  408,437
                                          ==========  ==========  ==========  ==========

Earnings per common share - basic         $     0.16  $     0.28  $     0.62  $     0.73
                                          ==========  ==========  ==========  ==========

Earnings per common share - diluted       $     0.16  $     0.27  $     0.59  $     0.71
                                          ==========  ==========  ==========  ==========
</TABLE>

See accompanying Notes to Consolidated Financial Statements.


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

                                                           Nine Months Ended
                                                             September 30,
                                                      ----------------------------
                                                          2003           2002
                                                      -------------  -------------
<S>                                                   <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Interest received                                  $  4,133,989   $  3,942,693
   Other revenue received                                  666,521        486,451
   Cash paid for operating expenses                     (2,238,706)    (1,839,792)
   Loan sales proceeds                                  23,739,120     10,000,232
   Taxes paid                                             (484,392)      (232,869)
   Loans originated for sale                           (22,281,641)   (10,981,449)
   Interest paid                                        (1,499,398)    (1,541,831)
                                                      -------------  -------------
                                                         2,035,493       (166,565)
                                                      -------------  -------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Cash paid for premises, equipment and software         (380,968)       (82,827)
   Loans originated, net of principal repayments        (6,369,373)    (6,531,597)
   Purchase of investment securities                    (4,418,877)    (1,122,011)
   Proceeds from sales/maturities of investments         3,641,151      1,917,691
   Cash paid for software                                  (10,506)           -0-
   Proceeds from sale of other real estate owned           215,220            -0-
   Purchase of Federal Home Loan Bank stock                (52,000)           -0-
                                                      -------------  -------------
                                                        (7,375,353)    (5,818,744)
                                                      -------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in time deposits                        (2,042,164)     5,237,539
   Net increase in other deposits                       12,028,408        296,274
   Net proceeds from other borrowings                   (1,365,646)        (5,754)
   Net decrease in securities sold under
      agreements to repurchase                             (60,964)        (3,160)
   Dividends paid                                          (95,733)      (196,111)
   Proceeds from warrants exercised                      1,986,740            -0-
                                                      -------------  -------------
                                                        10,450,641      5,328,788
                                                      -------------  -------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     5,110,781       (656,521)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD         3,595,245      6,246,506
                                                      -------------  -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD            $  8,706,026   $  5,589,985
                                                      =============  =============
</TABLE>


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

                                                             Nine Months Ended
                                                                September 30,
                                                          ------------------------
                                                             2003         2002
                                                          -----------  -----------
<S>                                                       <C>          <C>
RECONCILIATION OF NET INCOME TO NET CASH
   PROVIDED (USED) BY OPERATING ACTIVITIES

                                                          $  404,411   $  408,437
  Net income
  Adjustments to reconcile net income to net cash
   provided (used) by operating activities:
    Depreciation and amortization                            116,070      109,312
    Provision for loan losses                                156,598      158,991
    Decrease in accrued interest receivable and
        other assets                                          18,852       51,821
    Increase in operating accounts payable and other
        liabilities                                          121,687       39,733
    Increase in deferred loan origination fees                   834       14,801
    (Increase)/decrease in deferred income taxes            (233,392)      36,692
    Securities amortization/accretion, net                    40,918       33,970
    Net proceeds from loan sales                           1,457,479     (981,217)
    Loss on sale of other real estate/repossessions            8,157          -0-
    (Gain) on securities sold                                 (5,267)         -0-
    (Increase) in cash surrender value of life insurance     (50,854)     (39,105)
                                                          -----------  -----------
                                                          $2,035,493    ($166,565)
                                                          ===========  ===========
</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
nine  months  ended  September  30,  2003, are not necessarily indicative of the
results  that may be expected for the year ended December 31, 2003.  For further
information,  refer  to  the  consolidated  financial  statements  and footnotes
thereto  for  the Company's fiscal year ended December 31, 2002, included in the
Company's  Form  10-KSB  for  the  year  ended  December  31,  2002.

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:

<TABLE>
<CAPTION>
                                                      Nine Months Ended
                                                        September 30,
                                                     -------------------
                                                       2003       2002
                                                     ---------  --------
<S>                                                  <C>        <C>
          Net Income                                 $404,411   $408,437
          Unrealized (loss)/gain on investment
              securities available for sale, net of
              income taxes                            (36,455)    42,235
                                                     ---------  --------
          Comprehensive Income                       $367,956   $450,672
                                                     =========  ========
</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. In April, 2003, the Bank opened a second
full-service  branch  in  Easton,  Maryland.  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 Bank also offers for sale non-deposit
products  such as mutual funds, variable and fixed annuities and long term care.

     The  following  discussion  of  the  financial  condition  and  results  of
operations  of  the  Company  should  be  read in conjunction with the Company's
unaudited  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 September 30, 2003,
was $124,475, compared to $157,646 during the corresponding period of 2002.  Net
income  for  the nine months ended September 30, 2003, was $404,411, compared to
$408,437  for  the  corresponding  period  of  2002.

     For  the  first  nine  months of 2003 compared to the same 2002 period, net
interest  income  increased  $277,178  and  other  operating  income  increased
$211,397;  however,  these  increases  were offset by an increase of $504,994 in
total  operating expenses.  The increase in net interest income is primarily due
to declining interest rates, which resulted in a decrease in interest expense of
$49,671 and an increased volume of earning assets. Despite the decreasing yields
on  earning assets, interest revenue increased $227,507 as a result of growth of
the Bank.  The increase in total operating expenses is attributed to an increase
in  salaries  and  benefits of approximately $351,021, an increase of $38,672 in
occupancy,  furniture  and equipment and an increase in other operating expenses
of  $115,301,  all  due primarily to the Marlboro Avenue branch in Easton, which
was  opened  in  April  2003.


                                        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 nine months ended September 30, 2003, and the
year  ended  December  31,  2002:

<TABLE>
<CAPTION>
                                                 CONSOLIDATED                       CONSOLIDATED
                                                 ------------                       ------------
                                               AVERAGE BALANCES,                  AVERAGE BALANCES,
                                             INTEREST, AND YIELDS               INTEREST, AND YIELDS
                                           For the Nine Months Ended             For the Year Ended
                                               September 30, 2003                December 31, 2002
                                               ------------------                -----------------
                                         Average                           Average
                                         Balance     Interest    Yield     Balance     Interest    Yield
                                       -----------  -----------  ------  -----------  -----------  ------
<S>                                    <C>          <C>          <C>     <C>          <C>          <C>
ASSETS
Federal funds sold                     $ 2,977,445  $   23,952    1.06%    3,133,360  $   51,816    1.65%
Investment securities:
   State and municipal bonds               233,986      10,667    6.08%       99,684       6,181    6.20%
   U.S. government agency                3,190,360      72,602    3.03%    3,695,210     150,458    4.07%
   GNMA's                                1,166,409      43,911    5.02%    1,560,644      90,719    5.81%
   Other                                   457,556      14,935    4.36%      431,500      24,024    5.57%
                                       -----------  -----------  ------  -----------  -----------  ------
      Total investment securities        5,048,311     142,115    3.75%    5,787,038     271,382    4.69%
                                       -----------  -----------  ------  -----------  -----------  ------
Loans:
   Demand and time                      19,174,241     821,273    5.73%   16,758,375   1,067,587    6.37%
   Mortgage                             58,614,277   2,870,294    6.55%   48,093,350   3,468,875    7.21%
   Installment                           3,631,431     231,742    8.53%    3,717,123     340,985    9.17%
                                       -----------  -----------  ------  -----------  -----------  ------
      Total loans                       81,419,949   3,923,309    6.44%   68,568,848   4,877,447    7.11%
Allowance for loan losses                1,024,999                           830,372
                                       -----------                       -----------
      Total loans, net of allowance     80,394,950   3,923,309    6.52%   67,738,476   4,877,447    7.20%
                                       -----------  -----------  ------  -----------  -----------  ------
Total interest-earning assets           88,420,706   4,089,376    6.18%   76,658,874   5,200,645    6.78%
                                                    -----------  ------               -----------  ------
Noninterest-bearing cash                 2,804,494                         2,093,216
Bank premises and equipment              1,721,311                         1,594,570
Other assets                             2,071,852                         1,870,535
                                       -----------                       -----------
        Total assets                   $95,018,363                       $82,217,195
                                       ===========                       ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
  Savings and NOW deposits             $19,032,361  $   94,050     .66%  $15,225,692  $  167,992    1.10%
  Money market deposits                  9,207,269      83,156    1.21%    7,054,689      95,885    1.36%
  Other time deposits                   42,166,105   1,095,794    3.47%   42,768,276   1,609,468    3.76%
                                       -----------  -----------  ------  -----------  -----------  ------
    Total interest-bearing deposits     70,405,735   1,273,000    2.42%   65,048,657   1,873,345    2.88%
Noninterest-bearing deposits             9,704,952         -0-             7,981,612         -0-
                                       -----------  -----------          -----------  -----------
    Total deposits                      80,110,687   1,273,000    2.12%   73,030,269   1,873,345    2.57%
Borrowed funds                           7,472,827     185,249    3.31%    2,958,155     123,125    4.16%
                                       -----------  -----------  ------  -----------  -----------  ------
                                        87,583,514   1,458,249    2.23%   75,988,424   1,996,470    2.63%
                                                    -----------  ------               -----------  ------
Other liabilities                          474,253                           305,658
Stockholders' equity                     6,960,596                         5,923,113
                                       -----------                       -----------
        Total liabilities and
        Stockholders' equity           $95,018,363                       $82,217,195
                                       ===========                       ===========

Net interest spread                                               3.96%                             4.15%
                                                                 ======                            ======
Net interest income                                 $2,631,127                        $3,204,175
                                                    ===========                       ===========
Net margin on interest-earning assets                             3.98%                             4.18%
                                                                 ======                            ======
     _______________________________
     Interest  on  tax-favored  investments and loans are reported with adjustment to
     provide  a  fully  taxable  equivalent  basis.
</TABLE>


                                        7
<PAGE>
     The  Bank's  loan  portfolio (excluding loans held for sale) increased from
$71.5 million at December 31, 2002, to $77.5 million at September 30, 2003.  The
Bank's provision for loan losses was $39,528 for the quarter ended September 30,
2003,  and  $156,598  for  the nine months ended September 30, 2003, compared to
$53,088  for  the  quarter  ended  September 30, 2002, and $158,991 for the nine
months  ended  September  30,  2002.

     The  allowance  for  loan  losses  was $1,103,183 at September 30, 2003, or
1.40%  of total loans (excluding loans held for sale), compared to $1,069,489 at
June  30,  2003,  or  1.31%  of total loans (excluding loans held for sale), and
$924,859 at December 31, 2002, or 1.28% of total loans (excluding loans held for
sale).  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

                                                September 30,    December 31,
                                                    2003             2002
                                               ---------------  --------------
<S>                                            <C>              <C>
Balance at beginning of year                   $      924,859   $     750,768

Loan Losses:
     Commercial                                        23,050         125,187
     Real Estate                                          -0-           8,000
     Consumer                                           5,996          19,050
                                               ---------------  --------------
          Total loan losses                            29,046         152,237
                                               ---------------  --------------

Recoveries on loans previously charged off
      Commercial                                       23,878           3,975
      Real Estate                                         -0-             -0-
      Consumer                                         26,894          31,920
                                               ---------------  --------------
          Total loan recoveries                        50,772          35,895
                                               ---------------  --------------

Net loan losses                                       (21,726)        116,342
Provision for loan losses charged to expense          156,598         290,433
                                               ---------------  --------------
Balance at end of period                       $    1,103,183   $     924,859
                                               ===============  ==============

Allowance for loan losses to outstanding
     loans at end of period (excluding loans
     held for sale)                                      1.40%           1.28%

Net charge-offs/(recoveries) to average
     loans - annualized                                (0.03)%           0.17%
</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:


                                                   September 30,   December 31,
                                                        2003           2002
                                                   --------------  -------------
<S>                                                <C>             <C>
Nonaccrual
   Commercial                                      $      104,844  $      33,073
   Mortgage                                               188,238        482,822
   Installment                                             38,939          8,215
                                                   --------------  -------------
                                                   $      332,021  $     524,110
                                                   ==============  =============

Loans past due ninety days or more,
  still accruing interest                          $      276,000  $       1,000

Total non performing loans                         $      608,021  $     525,110

Interest not accrued                               $       12,180  $      14,750
</TABLE>

     Total  operating  expenses  increased  $196,097 to $864,686 for the quarter
ended  September  30,  2003,  from  $668,589 for the quarter ended September 30,
2002.  The  increase  was  related  to  the increase in salaries and benefits of
$139,134,  an  increase  in occupancy, furniture and equipment of $14,701 and an
increase  in  other operating expenses of $42,262.  The increase in salaries and
benefits  was  due  to  annual  salary increases, an increase in origination fee
income  earned, two new part time employees and six new full time employees. The
increase  in  occupancy,  furniture and equipment was due to expenses related to
the  opening  of  the  Marlboro  Avenue  branch  in  April  2003.

     Return  on  average  assets and average equity, on an annualized basis, for
the quarter ended September 30, 2003, was .50% and 6.09%, respectively, compared
to  .76%  and  10.39%,  respectively,  for  the same quarter of 2002.  Return on
average  assets  and average equity, on an annualized basis, for the nine months
ended September 30, 2003, was .60% and 7.22%, respectively, compared to .67% and
9.28%, respectively, for the same period of 2002.  Earnings per share on a fully
diluted basis for the quarter and the nine months ended September 30, 2003, were
$.16  and  $.59,  respectively, compared to $.27 and $.71, respectively, for the
same  periods  of  2002.

     The  Company's  assets ended the third quarter of 2003 at $99.2 million, an
increase  of  $10.8  million, or 12.3%, from $88.3 million at December 31, 2002.
This increase can be attributed primarily to the increase in the Bank's loans of
$4.5  million, an increase in federal funds sold of $4.0 million and an increase
in  cash  and  due from banks of $1.1 million. Total borrowings from the Federal
Home Loan Bank of Atlanta were approximately $6.1 million at September 30, 2003,
all  which  are  match  funded  on  loans  made  by  the Bank to Bank customers.

     Management  expects  that  its  2003  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.


                                        9
<PAGE>
Liquidity  and  Sources  of  Capital
------------------------------------

     The $10.0 million increase in deposits from December 31, 2002, to September
30,  2003,  is  primarily  reflected in the increase in the Bank's loans of $4.5
million,  the increase in federal funds sold of $4.0 million and the increase in
cash  and  due  from  banks  of  $1.1  million.  The Company's primary source of
liquidity  is  cash on hand plus short term investments.  At September 30, 2003,
the  Company's  liquid  assets  totaled $17.2 million, or 17.3% of total assets,
compared  to  $12.8  million,  or  14.5%  of total assets, at December 31, 2002.
Another  source  of  liquidity  is  the $16.5 million secured line of credit the
Company has from the Federal Home Loan Bank of Atlanta, of which $6.1 million is
currently  used,  and  the  $500,000 unsecured line of credit and the $5 million
secured line of credit the Company has from another correspondent bank, of which
$1,000,000  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
$161,230  and  is now approximately $1,386,230.  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 exceeds all prescribed regulatory
capital  guidelines  at  September  30, 2003.  At September 30, 2003, the Tier 1
leverage  ratio  for  the Bank was 8.27%.  At September 30, 2003, the Bank had a
risk-weighted  total capital ratio of 11.63%, and a Tier 1 risk-weighted capital
ratio  of  10.37%.  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 to be paid
to  shareholders  of  record  on  January  31,  2003.  The  dividend was paid on
February  15,  2003.  On April 28, 2003, the Board of Directors declared a $0.05
per  share cash dividend to be paid to shareholders of record on April 30, 2003.
The  dividend was paid on May 15, 2003. On July 28, 2003, the Board of Directors
declared a $0.05 per share cash dividend to be paid to shareholders of record on
July  31,  2003.  The dividend was paid on August 15, 2003. On October 27, 2003,
the  Board  of  Directors declared a $0.05 per share cash dividend to be paid to
shareholders  of  record  on  October  31,  2003.  The  dividend will be paid on
November  14, 2003.  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  $217,544  if  all  assets  and liabilities maturing within
that  period  were  adjusted  for the rate change. If prime were to increase 100
basis points, the Company would experience an increase in net interest income of
$201,356 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


                                       10
<PAGE>
rate  changes  nor whether management's reaction to this rate change would be to
reprice  its  loans  and  deposits.

ITEM  3.  CONTROLS  AND  PROCEDURES.

     As  of September 30, 2003, the Company carried out an evaluation, under the
supervision  and  with  the participation of its principal executive officer and
principal financial officer, of the effectiveness of the design and operation of
the Company's disclosure controls and procedures.  Based on this evaluation, the
principal executive officer and principal financial officer concluded that as of
September  30,  2003,  the  Company's  disclosure  controls  and  procedures are
effective  in  timely  alerting  them  to  material  information  required to be
included  in  the  Company's  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.


                                     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 a vote of security holders during the
quarter  ended  September  30,  2003.

ITEM  5.  OTHER  INFORMATION.

     None.

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

     (a)  Exhibits.

          11.1 Computation  of  Earnings  Per  Share.

          31   Certification  of  Principal  Executive  Officer  and  Principal
               Financial  Officer  pursuant to Section 302 of the Sarbanes-Oxley
               Act  of  2002.

          32   Certification  of  Principal  Executive  Officer  and  Principal
               Financial  Officer  pursuant to Section 906 of the Sarbanes-Oxley
               Act  of  2002.  This  Exhibit  is  not  "filed"  for


                                       11
<PAGE>
               purposes of Section 18 of the Securities Exchange Act of 1934 but
               is  instead  furnished  as  provided  by  applicable rules of the
               Securities  and  Exchange  Commission.

     (b)  Reports  on  Form  8-K.

          There  were  no  reports  on  Form 8-K filed by the Company during the
          quarter  ended  September  30,  2003.


                                       12
<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:    November 7, 2003               By:  /s/ R. Michael S. Menzies, Sr.
       ------------------                  --------------------------------
                                                 R. Michael S. Menzies, Sr.
                                                 President



Date:    November  7,  2003             By:  /s/ Pamela A. Mussenden
       --------------------                -------------------------
                                                 Pamela A. Mussenden
                                                 Assistant Treasurer
                                                 (Principal Financial Officer)


                                       13
<PAGE>

                                INDEX TO EXHIBITS

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

11.1    Computation  of  Earnings  Per  Share.


31      Certification  of  Principal  Executive  Officer  and
        Principal  Financial Officer pursuant to Section 302 of
        the  Sarbanes-Oxley  Act  of  2002.


32     Certification  of  Principal  Executive  Officer  and
       Principal  Financial Officer pursuant to Section 906 of
       the  Sarbanes-Oxley  Act  of  2002. This Exhibit is not
       "filed"  for  purposes  of Section 18 of the Securities
       Exchange  Act  of  1934  but  is  instead  furnished as
       provided  by  applicable  rules  of  the Securities and
       Exchange  Commission.


<PAGE>