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, 2001
                                           -----------------

       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 4, 2001, 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>
<TABLE>
<CAPTION>
                                     PART I
                              FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS.


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

                                                                March 31,     December 31,
                                                                   2001           2000
                                                               ------------  --------------
<S>                                                            <C>           <C>
                                         ASSETS
Cash and due from banks                                        $   780,625   $   1,202,011
Federal funds sold                                               4,639,912       1,325,552
Investment in Federal Home Loan Bank stock                         431,500         204,200
Investment securities available for sale                         4,132,983       4,978,928
Loans held for sale                                                248,000         353,110
Loans, less allowance for credit losses of
  $701,368 and $645,501 respectively                            56,042,988      54,249,898
Premises and equipment, net                                      1,651,165       1,670,019
Intangible assets, net                                              30,984          10,856
Accrued interest receivable                                        405,504         397,492
Bank Owned Life Insurance Policy                                 1,235,340               0
Other assets                                                       118,568         104,216
Deferred income taxes                                              (45,713)         40,211
                                                               ------------  --------------
           Total assets                                        $69,671,856   $  64,536,493
                                                               ============  ==============

                           LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Noninterest-bearing                                          $ 6,236,176   $   5,048,604
  Interest-bearing                                              55,927,008      52,069,826
                                                               ------------  --------------
           Total deposits                                       62,163,184      57,118,430
Accrued interest payable                                           180,607         138,693
Securities sold under agreements to repurchase                      28,868          69,984
Note payable                                                     1,628,335       1,630,092
Other liabilities                                                  137,395         153,025
                                                               ------------  --------------
           Total liabilities                                    64,138,389      59,110,224
                                                               ------------  --------------

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                                                225,615         153,211
                                                               ------------  --------------
                                                                 5,509,134       5,436,730
  Accumulated other comprehensive income (loss)                     24,333         (10,461)
                                                               ------------  --------------
           Total stockholders' equity                            5,533,467       5,426,269
                                                               ------------  --------------
           Total liabilities and stockholders' equity          $69,671,856   $  64,536,493
                                                               ============  ==============
See accompanying Notes to Consolidated Financial Statements.
</TABLE>


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


                                       Three Months Ended
                                            March 31,
                                     ----------------------
                                        2001        2000
                                     ----------  ----------
<S>                                  <C>         <C>
Interest revenue
  Loans, including fees              $1,242,459  $1,057,127
  Investment securities                  75,648      68,228
  Due from banks                            311           0
  Federal funds sold                     30,899      29,156
                                     ----------  ----------
    Total interest revenue            1,349,317   1,154,511

Interest expense                        680,934     534,105
                                     ----------  ----------

    Net interest income                 668,383     620,406

Provision for loan losses                48,354      53,933
                                     ----------  ----------

    Net interest income after
      provision for loan losses         620,029     566,473
                                     ----------  ----------

Other operating revenue                 119,834      55,263
                                     ----------  ----------

Other expenses
  Salaries and benefits                 342,072     280,595
  Occupancy                              33,761      25,136
  Furniture and equipment                29,105      27,124
  Other operating                       166,506     133,488
                                     ----------  ----------
      Total operating expenses          571,444     466,343
                                     ----------  ----------

Net income before income taxes          168,419     155,393

Income taxes                             68,000      55,000
                                     ----------  ----------

Net income                           $  100,419  $  100,393
                                     ==========  ==========


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

Earnings per common share - diluted  $     0.18  $     0.17
                                     ==========  ==========
</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,
                                                   --------------------------
CASH FLOWS FROM OPERATING ACTIVITIES                   2001          2000
                                                   ------------  ------------
<S>                                                <C>           <C>
    Interest received                              $ 1,332,928   $ 1,103,203
    Other revenue received                             109,720        55,263
    Cash paid for operating expenses                  (555,460)     (440,094)
    Interest paid                                     (639,020)     (542,406)
    Loans originated for sale                       (3,520,190)     (969,240)
    Proceeds from loan sales                         3,625,300       662,640
    Taxes Paid                                         (15,099)            0
                                                   ------------  ------------
                                                       338,179      (130,634)
                                                   ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Cash paid for premises and equipment               (10,329)      (17,812)
    Net loans to customers                          (1,836,575)   (2,140,198)
    Investment securities purchased                 (1,377,300)     (298,063)
    Proceeds from sales/maturities of investments    2,052,172        16,845
    Cash Paid for Software                             (22,048)            0
    Investment in Life Insurance Contract           (1,225,000)            0
                                                   ------------  ------------
                                                    (2,419,080)   (2,439,228)
                                                   ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Net increase (decrease) in time deposits         3,904,727       993,187
    Net increase (decrease) in other deposits        1,140,027     2,578,891
    Net increase (decrease) in securities sold
            under agreements to repurchase             (41,116)     (223,009)
    Debt advances                                            0     1,993,498
    Other Borrowings                                    (1,757)            0
    Dividends Paid                                     (28,015)            0
                                                   ------------  ------------
                                                     4,973,866     1,355,571
                                                   ------------  ------------

NET INCREASE (DECREASE) IN CASH                      2,892,965    (1,214,291)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     2,527,563     3,401,062
                                                   ------------  ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD         $ 5,420,528   $ 2,186,771
                                                   ============  ============
</TABLE>


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


<S>                                                            <C>        <C>
RECONCILIATION OF NET INCOME TO NET CASH
  PROVIDED (USED) IN OPERATING ACTIVITIES
Net income                                                     $100,419   $  100,393
  Adjustments to reconcile net income to net cash
    Provided (used) in operating activities:
        Depreciation and amortization                            31,103       27,909
        Provision for loan losses                                48,354       53,933
        Loan sales net proceeds                                 105,110     (306,600)
        Increase in cash surrender value of insurance           (10,340)           0
        Securities amortization/accretion, net                   (3,508)           0
        Deferred Income Taxes                                    68,000            0
        Accrued Income Taxes net of prepaid taxes               (15,099)           0
        Decrease (increase) in accrued interest receivable
             and other assets                                   (22,374)      23,704
        Increase (decrease) in operating accounts payable
             and other liabilities                               41,383      (29,973)
        Increase (decrease) in deferred loan origination fees    (4,869)           0
                                                               ---------  -----------
                                                               $338,179    ($130,634)
                                                               =========  ===========
</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, 2001, are not necessarily indicative of the results
that  may  be  expected  for  the  year  ended  December  31, 2001.  For further
information,  refer  to  the  consolidated  financial  statements  and footnotes
thereto  for  the Company's fiscal year ended December 31, 2000, included in the
Company's  Form  10-KSB  for  the  year  ended  December  31,  2000.

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:

                                                    Three Months Ended
                                                       March  31,
                                                     2001      2000
                                                   --------  ---------
        Net Income                                 $100,419  $100,393
        Unrealized gain (loss) on investment
             securities available for sale net of
             income taxes                            34,794   (10,674)
                                                   --------  ---------
        Comprehensive Income                       $135,213  $ 89,719
                                                   ========  =========


                                        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.
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, 2001, was
$100,419,  compared  to  $100,393  during  the corresponding period of 2000. Net
interest  income  increased  approximately  $48,000  and  other operating income
increased  approximately  $65,000;  however,  those  increases  were offset by a
decrease of approximately $6,000 in provision for loan losses and an increase of
$105,000  in total operating expenses and $13,000 in income taxes.  The increase
in net interest income is primarily due to an increase of approximately $185,000
in  interest  earned  on  the  growth in the loan portfolio and approximately an
increase  of  $147,000  in  interest  expense  primarily  due to the increase in
deposits.  The  increase  in total operating expenses is primarily attributed to
an increase in salaries and benefits of approximately $61,000 and an increase in
other  operating  expenses  of  $33,000.


                                        6
<PAGE>
     The  Bank's  loan  portfolio (excluding loans held for sale) increased from
$54.2  million  at  December  31, 2000, to $56.0 million at March 31, 2001.  The
Bank's  provision  for  loan  losses was $48,354 for the quarter ended March 31,
2001,  compared  to $53,933 for the quarter ended March 31, 2000.  The allowance
for  loan  losses  was  $701,368  at  March  31,  2001,  or 1.24% of total loans
(excluding  loans  held for sale), compared to $645,501 at December 31, 2000, 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  $105,101 to $571,444 for the quarter ended
March  31,  2001,  from  $466,343  for  the  quarter  ended March 31, 2000.  The
increase  was  primarily  related  to  the increases in salaries and benefits of
$61,477  and  other operating expenses of $33,018.  The increase in salaries and
benefits  was  due  to  annual  salary increases, one new full-time employee and
increased  commissions  earned  by  the  mortgage  division.

     Return  on  average  assets and average equity, on an annualized basis, for
the quarter ended March 31, 2001, were .64% and 7.89%, respectively, compared to
 .72%  and 8.35%, respectively, for the same quarter of 2000.  Earnings per share
on  a  fully  diluted basis for the quarters ended March 31, 2001, and March 31,
2000,  amounted  to  $.18  and  $.17.

     The  Company's  assets ended the first quarter of 2001 at $69.7 million, an
increase  of  $5.1  million,  or 7.96%, from $64.5 million at December 31, 2000.
This  increase can be attributed primarily to an increase in the Bank's loans of
$1.7  million,  an  increase  in  federal  funds  sold  of  $3.3  million and an
investment  in  a  Bank  owned life insurance policy of $1.2 million offset by a
decrease  in  investment securities of $846,000.  The borrowings of $1.6 million
from  Federal  Home  Loan  Bank  of  Atlanta  are  match  funded  to  two loans.

     Management  expects  that  its  2001 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  $5.0 million increase in deposits from December 31, 2000, to March 31,
2001, is primarily reflected in the increase in the Bank's loans of $1.7 million
and  the  $3.3  million  increase  in federal funds sold.  The Company's primary
source  of  liquidity is cash on hand plus short-term investments.  At March 31,
2001,  the  Company's  liquid  assets  totaled  $9.6 million, or 13.71% of total
assets,  compared  to  $7.5  million, or 11.63% of total assets, at December 31,
2000.  Another  source  of  liquidity is the $7.4 million secured line of credit
the  Company  has  from  the  Federal  Home  Loan Bank of Atlanta, of which $1.6
million  is used, the $1.0 million unsecured line of credit the Company has from
a  correspondent  bank,  and the $1.5 million secured line of credit the Company
has  from  another  correspondent  bank,  of which $1.3 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, which approximates the current cash
surrender  value  of  the  policy. 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.


                                        7
<PAGE>
     The  capital of the Company and the Bank exceeded all prescribed regulatory
capital  guidelines  at  March 31, 2001.  At March 31, 2001, the Tier 1 leverage
ratio  for  the Bank was 8.19%.  At March 31, 2001, the Bank had a risk-weighted
total  capital  ratio  of  11.16%,  and  a Tier 1 risk-weighted capital ratio of
9.91%.  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, 2001. The dividend was paid on February
15,  2001.  On April 30, 2001, 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, 2001. The dividend will be paid on May 15,
2001.  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  $2,712  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,  2001.


                                        8
<PAGE>
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  March  31,  2001.


                                        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  9,  2001                    By:  /s/  R.  Michael  S.  Menzies
       ---------------                       -----------------------------------
                                                   R.  Michael  S.  Menzies
                                                   President



Date:    May  9,  2001                    By:  /s/  Pamela  A.  Mussenden
       ---------------                       -----------------------------------
                                                   Pamela  A.  Mussenden
                                                   Assistant  Treasurer
                                                   (Principal Financial Officer)


                                       10
<PAGE>
                                INDEX TO EXHIBITS

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

11.1          Computation  of  Earnings  Per  Share.


                                       11
<PAGE>