SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549





FORM 10-Q

Quarterly Report under Section 13 or 15(d)

of The Securities Exchange Act of 1934





For the Quarter Ended March 31, 2001 Commission file number  0-16213



|GBC BANCORP | 
|----------- | 

(Exact name of registrant as specified in its charter)



|California | 95-3586596
|---------- | ----------

(State or other jurisdiction of                            
(I.R.S. Employer Identification No.)

incorporation or organization)



|800 West 6th Street, Los Angeles, | California          90017
|--------------------------------- | -------------------------

(Address of principal executive offices)                 
(Zip code)



Registrant's telephone number, including area code   213/972-4174



|Former name address and former fiscal year, if changed since last report. | 
|------------------------------------------------------------------------- | 



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 _______



Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report.



Common stock, no par value, 11,708,427 shares issued and outstanding as of March 31, 2001.







TABLE OF CONTENTS







|PART I   - | FINANCIAL INFORMATION .............................................................                                                                                 | 
|---------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|           |                                                                                                                                                                     | 
|Item 1.    | Financial Statements ..............................................................................                                                                 | 
|           |                                                                                                                                                                     | 
|Item 2.    | Management's Discussion and Analysis of Financial Condition and Results of Operations ............................................................................. | 
|           |                                                                                                                                                                     | 
|           |                                                                                                                                                                     | 
|           |                                                                                                                                                                     | 
|PART II  - | OTHER INFORMATION ......................................................................                                                                            | 
|           |                                                                                                                                                                     | 
|Item 1.    | Legal Proceedings ..................................................................................                                                                | 
|           |                                                                                                                                                                     | 
|Item 2.    | Changes In Securities .............................................................................                                                                 | 
|           |                                                                                                                                                                     | 
|Item 3.    | Default Upon Senior
Securities...........................................................                                                                           | 
|           |                                                                                                                                                                     | 
|Item 4.    | Submission Of Matters To A Vote Of Securities Holders .....................                                                                                         | 
|           |                                                                                                                                                                     | 
|Item 5.    | Other Information ...................................................................................                                                               | 
|           |                                                                                                                                                                     | 
|Item 6.    | Exhibits And Reports On Form 8-K ......................................................                                                                             | 
|           |                                                                                                                                                                     | 
|           |                                                                                                                                                                     | 
|           |                                                                                                                                                                     | 
|PART III - | SIGNATURES .......................................................................................                                                                  | 





PART I - FINANCIAL INFORMATION

<TABLE>

<CAPTION>

|GBC BANCORP AND SUBSIDIARIES                                                       |             |  |             
|---------------------------------------------------------------------------------- | ----------- |  | ------------
|CONSOLIDATED BALANCE SHEETS                                                        |             |  |             
|                                                                                   |             |  |             
|                                                                                   | March 31,   |  | December 31,
|(Dollars In Thousands)                                                             | 2001        |  | 2000        
|Assets                                                                             |             |  |             
|<S>                                                                                | <C>         |  | <C>         
|Cash and Due From Banks                                                            | $ 40,470    |  | $ 40,306    
|Federal Funds Sold and Securities Purchased Under
      Agreements to Resell       | 66,500      |  | 75,000      
|Cash and Cash Equivalents                                                          | 106,970     |  | 115,306     
|                                                                                   |             |  |             
|Securities Available for Sale at Fair Value (Amortized
      Cost of $854,923      |             |  |             
|at March 31, 2001 and $838,302 at December 31, 2000,
      respectively)           | 878,293     |  | 855,383     
|Securities Held to Maturity (Fair Value of $959 at March
      31, 2001            |             |  |             
|and $968 at December 31, 2000, respectively)                                       | 959         |  | 1,025       
|Trading Securities                                                                 | 1,335       |  | 4,637       
|Loans and Leases                                                                   | 1,016,052   |  | 969,023     
|Less: Allowance for Credit Losses                                                  | (22,298)    |  | (19,426)    
|Deferred Loan Fees                                                                 | (4,385)     |  | (4,085)     
|Loans and Leases, Net                                                              | 989,369     |  | 945,512     
|Bank Premises and Equipment, Net                                                   | 5,602       |  | 5,578       
|Other Real Estate Owned, Net                                                       | 1,054       |  | 1,035       
|Due From Customers on Acceptances                                                  | 12,440      |  | 6,304       
|Real Estate Held for Investment                                                    | 3,401       |  | 3,826       
|Other Investments                                                                  | 16,272      |  | 15,444      
|Accrued Interest Receivable and Other Assets                                       | 15,137      |  | 15,059      
|Total Assets                                                                       | $ 2,030,832 |  | $ 1,969,109 
|                                                                                   |             |  |             
|Liabilities and Stockholders' Equity                                               |             |  |             
|                                                                                   |             |  |             
|Deposits:                                                                          |             |  |             
|Demand                                                                             | $ 207,080   |  | $ 207,281   
|Interest Bearing Demand                                                            | 377,869     |  | 389,347     
|Savings                                                                            | 65,778      |  | 69,386      
|Time Certificates of Deposit of $100,000 or More                                   | 840,258     |  | 826,157     
|Other Time Deposits                                                                | 179,338     |  | 182,398     
|Total Deposits                                                                     | 1,670,323   |  | 1,674,569   
|                                                                                   |             |  |             
|Borrowings from the Federal Home Loan Bank                                         | 73,000      |  | 25,000      
|Subordinated Debt                                                                  | 39,170      |  | 39,138      
|Acceptances Outstanding                                                            | 12,440      |  | 6,304       
|Accrued Expenses and Other Liabilities                                             | 36,825      |  | 36,316      
|Total Liabilities                                                                  | 1,831,758   |  | 1,781,327   
|                                                                                   |             |  |             
|Stockholders' Equity:                                                              |             |  |             
|Common Stock, No Par or Stated Value;                                              |             |  |             
|40,000,000 Shares Authorized; 11,708,427 shares(net of
      96,935 shares held in |             |  |             
|trust) at March 31, 2001 and 11,557,727 shares(net of
      71,007 shares held in  |             |  |             
|trust) at December 31, 2000, respectively                                          | $ 67,043    |  | $ 62,054    
|Accumulated Other Comprehensive Income                                             | 13,534      |  | 9,891       
|Retained Earnings                                                                  | 116,023     |  | 114,266     
|Shares Held in Trust for Deferred Compensation                                     | 2,474       |  | 1,571       
|Total Stockholders' Equity                                                         | 199,074     |  | 187,782     
|Total Liabilities and Stockholders' Equity                                         | $ 2,030,832 |  | $ 1,969,109 
|                                                                                   |             |  |             
|                                                                                   |             |  |             
|See Accompanying Notes to Consolidated Financial
      Statements                  |             |  |             

</TABLE>

|<TABLE>  
|---------
|<CAPTION>



|GBC BANCORP AND SUBSIDIARIES                                              |  |                            |  |           
|------------------------------------------------------------------------- |  | -------------------------- |  | ----------
|CONSOLIDATED STATEMENTS OF INCOME                                         |  |                            |  |           
|                                                                          |  | For the Three Months Ended
|                                                                          |  | March 31,                 
|(In Thousands, Except Per Share Data)                                     |  | 2001                       |  | 2000      
|INTEREST INCOME                                                           |  |                            |  |           
|<S>                                                                       |  | <C>                        |  | <C>       
|Loans and Leases, Including Fees                                          |  | $ 23,244                   |  | $ 22,443  
|Securities Available for Sale                                             |  | 15,343                     |  | 11,621    
|Securities Held to Maturity                                               |  | 16                         |  | 20        
|Federal Funds Sold and Securities                                         |  |                            |  |           
|Purchased under Agreements to Resell                                      |  | 1,047                      |  | 1,671     
|Other                                                                     |  | 8                          |  | 3         
|                                                                          |  |                            |  |           
|Total Interest Income                                                     |  | 39,658                     |  | 35,758    
|                                                                          |  |                            |  |           
|INTEREST EXPENSE                                                          |  |                            |  |           
|Interest Bearing Demand                                                   |  | 2,909                      |  | 2,827     
|Savings                                                                   |  | 352                        |  | 475       
|Time Certificates of Deposits of $100,000 or More                         |  | 11,701                     |  | 9,050     
|Other Time Deposits                                                       |  | 2,353                      |  | 2,248     
|Federal Funds Purchased and Securities                                    |  |                            |  |           
|Sold under Repurchase Agreements                                          |  | 12                         |  | 9         
|Borrowings from the Federal Home Loan Bank                                |  | 421                        |  | 613       
|Subordinated Debt                                                         |  | 870                        |  | 870       
|                                                                          |  |                            |  |           
|Total Interest Expense                                                    |  | 18,618                     |  | 16,092    
|                                                                          |  |                            |  |           
|Net Interest Income                                                       |  | 21,040                     |  | 19,666    
|Provision for Credit Losses                                               |  | 6,000                      |  | -         
|                                                                          |  |                            |  |           
|Net Interest Income after Provision                                       |  |                            |  |           
|for Credit Losses                                                         |  | 15,040                     |  | 19,666    
|                                                                          |  |                            |  |           
|NON-INTEREST INCOME                                                       |  |                            |  |           
|Service Charges and Commissions                                           |  | 1,887                      |  | 1,966     
|Gain on Sale of Loans, Net                                                |  | 3                          |  | 3         
|Gain on Sale of Fixed Assets                                              |  | -                          |  | 4         
|Trading Account Revenue                                                   |  | 2,273                      |  | 5,201     
|Expense from Other Investments                                            |  | (135)                      |  | (2)       
|Other                                                                     |  | 31                         |  | 67        
|                                                                          |  |                            |  |           
|Total Non-Interest Income                                                 |  | 4,059                      |  | 7,239     
|                                                                          |  |                            |  |           
|NON-INTEREST EXPENSE                                                      |  |                            |  |           
|Salaries and Employee Benefits                                            |  | 5,326                      |  | 5,480     
|Occupancy Expense                                                         |  | 830                        |  | 797       
|Furniture and Equipment Expense                                           |  | 513                        |  | 515       
|Net Other Real Estate Owned Expense                                       |  | 43                         |  | 606       
|Other                                                                     |  | 2,192                      |  | 1,879     
|                                                                          |  |                            |  |           
|Operating Non-interest Expense                                            |  | 8,904                      |  | 9,277     
|Reduction of Fair Value of Derivatives                                    |  | 6,727                      |  | -         
|                                                                          |  |                            |  |           
|Total Non-Interest Expense                                                |  | 15,631                     |  | 9,277     
|                                                                          |  |                            |  |           
|Income before Income Taxes                                                |  | 3,468                      |  | 17,628    
|Provisionfor
      Income Taxes                                           |  | 1,083                      |  | 6,780     
|Income before Cumulative Effect of a Change in Accounting
      Principle |  | 2,385                      |  | 10,848    
|                                                                          |  |                            |  |           
|Cumulative Effect of a Change in Accounting Principle, Net
      of Tax   |  | 4,962                      |  | -         
|                                                                          |  |                            |  |           
|Net Income                                                                |  | $ 7,347                    |  | $ 10,848  
|Earnings Per Share:                                                       |  |                            |  |           
|Income before Cumulative Effect of a Change in Accounting
      Principle |  |                            |  |           
|Basic                                                                     |  | $ 0.20                     |  | $ 0.94    
|Diluted                                                                   |  | 0.20                       |  | 0.92      
|Cumulative Effect of a Change in Accounting Principle, Net
      of Tax   |  |                            |  |           
|Basic                                                                     |  | $ 0.42                     |  | $ -       
|Diluted                                                                   |  | 0.41                       |  | -         
|Net Income                                                                |  |                            |  |           
|Basic                                                                     |  | $ 0.62                     |  | $ 0.94    
|Diluted                                                                   |  | 0.61                       |  | 0.92      
|Weighted Average Basic Shares Outstanding                                 |  | 11,790,083                 |  | 11,518,119
|Weighted Average Diluted Shares Outstanding                               |  | 11,972,208                 |  | 11,742,361
|See Accompanying Notes to Consolidated Financial
      Statements         |  |                            |  |           

</TABLE>





|<TABLE>  
|---------
|<CAPTION>



|                                                                                        |                                      |  |          
|--------------------------------------------------------------------------------------- | ------------------------------------ |  | ---------
|GBC BANCORP AND SUBSIDIARIES                                                            |                                      |  |          
|CONSOLIDATED STATEMENTS OF CASH FLOW                                                    |                                      |  |          
|                                                                                        |                                      |  |          
|                                                                                        | For the Three Months Ended March 31,
|(In Thousands)                                                                          | 2001                                 |  | 2000     
|                                                                                        |                                      |  |          
|OPERATING ACTIVITIES                                                                    |                                      |  |          
|<S>                                                                                     | <C>                                  |  | <C>      
|Net Income                                                                              | $ 7,347                              |  | $ 10,848 
|Adjustments to Reconcile Net Income to Net Cash Provided
      by Operating Activities: |                                      |  |          
|Depreciation                                                                            | 325                                  |  | 370      
|Net (Accretion)/Amortization of Premiums on Securities                                  | (1,061)                              |  | 106      
|Accretion of Discount on Subordinated Notes                                             | 32                                   |  | 32       
|Writedown on Real Estate Held for Investment                                            | 424                                  |  | 424      
|Provisionfor Credit Losses                                                              | 6,000                                |  | -        
|Provision for Losses on Other Real Estate Owned                                         | -                                    |  | 389      
|Amortization of Deferred Loan Fees                                                      | (1,014)                              |  | (938)    
|Gainon Sale of Other Real Estate Owned                                                  | -                                    |  | (29)     
|Gainon Sale of Fixed Assets                                                             | -                                    |  | (4)      
|Net (Decrease)/Increase in Trading Securities                                           | 3,302                                |  | (5,379)  
|Net Decrease in Forward Sales Equity Securities                                         | -                                    |  | 2,631    
|Net Increase in Accrued Interest Receivable and Other
      Assets                      | (2,213)                              |  | (3,391)  
|Net Increase in Accrued Expenses and Other Liabilities                                  | 2,656                                |  | 5,023    
|                                                                                        |                                      |  |          
|Net Cash Provided by Operating Activities                                               | 15,798                               |  | 10,082   
|                                                                                        |                                      |  |          
|INVESTING ACTIVITIES                                                                    |                                      |  |          
|Purchases of Securities Available for Sale                                              | (59,415)                             |  | (75,862) 
|Proceeds from Maturities of Securities Available for Sale                               | 43,855                               |  | 20,009   
|Proceeds from Maturities of Securities Held to Maturity                                 | 66                                   |  | 49       
|Net (Increase)/Decrease in Loans and Leases                                             | (48,861)                             |  | 12,772   
|Purchase of Equity Interest in Limited Partnerships                                     | (1,135)                              |  | (825)    
|Net Decrease in Other Investments                                                       | 307                                  |  | -        
|Proceeds from Sales of Other Real Estate Owned                                          | -                                    |  | 463      
|Purchases of Premises and Equipment                                                     | (351)                                |  | (399)    
|Proceeds from Sales of Bank Premises and Equipment                                      | 3                                    |  | 4        
|                                                                                        |                                      |  |          
|Net Cash Used by Investing Activities                                                   | (65,531)                             |  | (43,789) 
|                                                                                        |                                      |  |          
|FINANCING ACTIVITIES                                                                    |                                      |  |          
|Net (Decrease)/Increase in Demand, Interest Bearing Demand
      and Savings Deposits   | (15,287)                             |  | 96,373   
|Net Increase in Time Certificates of Deposit                                            | 11,041                               |  | 43,194   
|Net Increase in Borrowings from the Federal Home Loan Bank                              | 48,000                               |  | -        
|Stock Repurchase Program                                                                | (4,174)                              |  | (3,177)  
|Cash Dividends Paid                                                                     | (1,163)                              |  | (1,037)  
|Proceeds from Exercise of Stock Options                                                 | 2,077                                |  | 224      
|Issuance of Stock                                                                       | 903                                  |  | 829      
|                                                                                        | `                                    |  | `        
|Net Cash Provided by Financing Activities                                               | 41,397                               |  | 136,406  
|                                                                                        |                                      |  |          
|Net Change in Cash and Cash Equivalents                                                 | (8,336)                              |  | 102,699  
|Cash and Cash Equivalents at Beginning of Period                                        | 115,306                              |  | 106,120  
|                                                                                        |                                      |  |          
|Cash and Cash Equivalents at End of Period                                              | $ 106,970                            |  | $ 208,819
|                                                                                        |                                      |  |          
|Supplemental Disclosures of Cash Flow Information                                       |                                      |  |          
|Cash Paid During This Period for                                                        |                                      |  |          
|Interest                                                                                | $ 19,247                             |  | $ 15,688 
|Income Taxes                                                                            | 15                                   |  | 2,049    
|                                                                                        |                                      |  |          
|Noncash Investing Activities                                                            |                                      |  |          
|Loans Transferred to Other Real Estate Owned at Fair Value                              | $ 18                                 |  | $ 21     
|                                                                                        |                                      |  |          
|See Accompanying Notes to Consolidated Financial
      Statements                       |                                      |  |          

</TABLE>

GBC Bancorp and Subsidiaries



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1. Basis of Presentation
2. Change of Accounting Principle
3. Commitments and Contingencies
4. Pending Litigation
5. Earnings Per Share
6. Quarterly Dividends
7. Recent Accounting Developments



In September 2000, SFAS No. 140, " Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities," a replacement of FASB Statement No. 125, was issued. It revises the standards for accounting
for securitizations and other transfers of financial assets and collateral and requires certain disclosures, but it carries over most of SFAS No. 125's provisions without consideration. It is not expected that the adoption of SFAS No. 140 will have a
material impact on the Company's results of operations, financial position, or cash flows.









Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS





FORWARD-LOOKING STATEMENTS



Certain statements contained herein, including, without limitation, statements containing the words "indicates," "anticipates," "believes," "intends," "expects" and words of similar
import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, among others, the following:
general economics and business conditions in those areas in which the Company operates; demographic changes; competition; fluctuations in interest rates; changes in business strategy or development plans; changes in governmental regulation; credit quality;
 and other factors referenced herein, including, without limitation, under the captions Provision for Credit Losses, Market Risk, Liquidity and Interest Rate Sensitivity, and Recent Accounting Developments.  Given these uncertainties, the reader is
cautioned not to place undue reliance on such forward-looking statements.  The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to
reflect future events or developments.







OVERVIEW



For the quarter ended March 31, 2001, net income totaled $7,347,000, or $0.61   diluted earnings per share, compared to $10,848,000, or $0.92 diluted earnings per share for the first quarter of 2000.



The $3,501,000, or 32.3%, decrease in net income was primarily the result of $6,000,000 increase of the provision for credit losses. There was no provision for credit losses for the three months ended March 31, 2000.  The increase
in the provision for credit losses was due to deterioration in existing problem commercial loans.  Non interest income also decreased $3,180,000 primarily due to a decline in trading revenue.  Partially offsetting the above was a $1,374,000 increase of
net interest income. In 2001, the Company adopted SFAS No.133 whereby the difference of a non-hedging derivative's carrying value and its fair value is recorded through the statement of income. The net impact of recording derivatives at fair value as
required by SFAS No. 133 was to increase net income on a pre-tax basis by $1,834,000.



The annualized return on average assets ("ROA") for the Company was 1.52% and 2.42% for the quarter ended March 31, 2001 and 2000, respectively.  The annualized return on average stockholders' equity ("ROE") for the quarter ended March
31, 2001 and 2000 was 15.3% and 31.8%, respectively.





RESULTS OF OPERATIONS





Net Interest Income



For the quarter ended March 31, 2001 and 2000, net interest income before the provision for credit losses was $21,040,000 and $19,666,000, respectively, representing an increase of $1,374,000, or 7.0%.  The reasons explaining this
increase are discussed below.





Interest Income



Total interest income for the quarter ended March 31, 2001 was $39,658,000 compared to $35,758,000 for the corresponding period of a year ago.  The increase of $3,900,000, or 10.9%, was due to both an increase of average earning
assets and the yield earned thereon.  For the quarter ended March 31, 2001 and 2000, average earning assets were $1,894.5 million and $1,733.1 million, respectively, representing a $161.4 million, or 9.3%, growth.  The yield on earning assets increased
from 8.30% to 8.49%, for the quarter ended March 31, 2000 and 2001, respectively.



The 19-basis point increase was mainly due to the higher yield from investment securities which increased 70 basis points from 6.62% to 7.32% for the quarter ended March 31, 2000 and 2001, respectively.  The higher yield was
primarily due to the restructuring of the portfolio in the fourth quarter of 2000.



Offsetting the above increase was the 17 basis point of the decline yield on loans and leases.  The decrease was due to the decline of the average prime rate of interest from 8.69% in the first quarter of 2000 to 8.63% in the
corresponding period of 2001. In addition, there was a decline of the loan yield because during the first quarter of 2001, there were net interest charge-offs of $339,000 as compared to net interest recoveries of $232,000 during the first quarter of 2000.
Offsetting the above, there was a decline of the average non-accrual loans.  For the quarter ended March 31, 2001 and 2000 non-accrual loans averaged $19.3 million and $32.9 million, respectively.











Interest Expense



Total interest expense for the quarter ended March 31, 2001 was $18,618,000 compared to $16,092,000 for the corresponding period of a year ago.  The increase of $2,526,000, or 15.7%, was due to both the increase of the cost of
funds and the increase of average interest-bearing deposits.  The cost of funds increased from 4.47% for the quarter ended March 31, 2000 to 4.92% for the quarter ended March 31, 2001. The 45 basis point increase of the cost of funds was primarily the
result of increased annualized costs for time certificates of deposit of $100,000 or more and other time deposits.  Average interest-bearing deposits were $1,461.5 million and $1,357.2 million for the quarter ended March 31, 2001 and 2000, respectively,
an increase of $104.3 million, or 7.7%.  The growth was primarily in the higher costing time certificates of deposit of $100,000 or more which increased to 50.2% of total average deposits for the first quarter of 2001 from 46.8% for the first quarter of
2000. In addition, average interest bearing demand deposits increased $21.6 million.  These increases were partially offset by a $14.5 million and $11.2 million decline of the average other time deposits and saving deposits, respectively.



For the quarter ended as indicated, the average balance and rates paid for the deposit categories were as
follows (dollars in thousands):



|<TABLE>                                   |  |                               
|----------------------------------------- |  | ------------------------------
|<CAPTION>                                 |  |                               
|                                          |  |                               
|                                          |  | For the Quarter Ended March 31
|                                          |  | 2001                          
|                                          |  |                               
|<S>                                       |  | <C>                           
|Interest bearing demand - Average balance |  | $ 380,109                     
|Rate                                      |  | 3.10%                         
|                                          |  |                               
|Savings - Average balance                 |  | 68,494                        
|Rate                                      |  | 2.09%                         
|                                          |  |                               
|Time certificates of deposit              |  |                               
|of $100,000 or more - Average balance     |  | 830,005                       
|Rate                                      |  | 5.72%                         
|                                          |  |                               
|Other time deposits - Average balance     |  | 182,920                       
|Rate                                      |  | 5.22%                         
|</TABLE>                                  |  |                               



Interest expense related to other borrowings declined $189,000 due to a reduced average balance of borrowings from the Federal Home Loan
Bank. This was partially offset by an increase of the cost of the Federal Home Loan Bank borrowings.



The net interest spread, defined as the yield on earning assets less the rates paid on interest-bearing liabilities, decreased to 3.57% for the quarter ended March 31, 2001 from 3.83% for the corresponding period of a year ago.  The 26
basis point decrease is due to the 45 basis point increase of the cost of funds compared to the 19 basis point increase of the yield on earning assets.



The net interest margin, defined as the annualized difference between interest income and interest expense divided by average interest earning assets, decreased 6 basis points to 4.50% for the quarter ended March 31, 2001, from
4.56% for the corresponding period of a year ago. The decline of the net interest spread was partially offset by the increase of average non-costing funds. For the quarter ended March 31, 2001, average non-interest bearing demand deposits increased $8.6
million and average stockholders' equity, excluding the unrealized gain/loss on securities available for sale, increased $39.3 million.





Provision for Credit Losses



For the quarter ended March 31, 2000, there was no provision for credit losses.  For the quarter ended March 31, 2001, the provision for credit losses was $6,000,000.



The $6,000,000 provision was based on the quarter-end review of existing problem commercial loans. The review determined there had been a further deterioration in the condition of certain loans with a resulting effect on charge-offs
and non-accrual loans. For the first quarter ended March 31, 2001, net charge-offs were $3.1 million compared to net recoveries of $0.1 million for the corresponding period of a year ago. As of March 31, 2001, non-accrual loans totaled $23.6 million
compared to $12.2 million, as of March 31, 2000.



The amount of the provision for credit losses is determined by management and is based upon the quality of the loan portfolio, management's assessment of the economic environment, evaluations made by regulatory authorities, historical
loan loss experience, collateral values, assessment of borrowers' ability to repay, and estimates of potential future losses.  Please refer to the discussion "Allowance for Credit Losses", following.





Non-Interest Income



Non-interest income for the quarter ended March 31, 2001 totaled $4,059,000 compared to $7,239,000 for the same period ended March 31, 2000, representing a $3,180,000, or 43.9% decrease. The decline is primarily due to the
$2,928,000 reduction of trading revenue. For the quarter ended March 31, 2001 and 2000, trading revenue was $2,273,000 and $5,201,000, respectively. $1,308,000 of the trading revenue earned for the quarter ended March 31, 2001, represents recognition of
the fair value of securities subject to a lock-up provision which expires in April of 2001. This portion of the trading revenue is subject to revaluation until the securities are sold. Thus, they are subject to stock market conditions as well as the
performance of the company.



Trading account revenue is income earned on securities classified as trading account securities. The Company's subsidiary, GBC Venture Capital, ("VC") receives equity securities which it holds as trading securities primarily
from two sources: a distribution from venture capital funds in which it invests and the exercise of warrants acquired through the lending operations of General Bank, its affiliate. The recognition of fair value and ultimate disposition of these securities
results in trading account revenue.



Also included in other income is the income (expense) from other investments. This source of income is based on recording under the equity method the income or loss as reported by the partnerships of which the Company is a limited
partner.





Non-Interest Expense



Operating non-interest expense for the quarter ended March 31, 2001, totaled $8,904,000, a $373,000, or 4.0%, decrease from the $9,277,000 recorded in the same period of 2000.  The decline was primarily the result of a $563,000
reduction of net other real estate owned expense for the quarter ended March 31, 2001 compared to the corresponding period of a year ago. The reduction of net other real estate owned expense was primarily the result of a $389,000 provision for the
valuation of OREO properties held as of March 31, 2000. The decline of net other real estate owned expense was partially offset by a $313,000 increase of other expense due mainly to the settlement of litigation in the first quarter of 2001.



As discussed below, as of January 1, 2001, there were warrants classified as derivatives totaling $8,561,000 pre-tax. One company's warrants valued at $6,245,000 as of this date, were converted into equity securities and $1,308,000 of
trading revenue for the quarter-ended March 31, 2001 was recognized. The conversion of these warrants
and a decline in the value of the underlying shares caused the majority of the $6,727,000 which was recognized as reduction of fair value of derivatives.



For the quarter ended March 31, 2001, the Company's efficiency ratio, defined as non-interest expense divided by the sum of net interest income plus non-interest income, declined to 38.8%, comparing favorably to 42.7% for the
corresponding period of 2000.  The efficiency ratios as reported exclude trading revenue and income (expense) from other investments, reduction of fair value of derivatives, and the cumulative effect of a change in accounting principle.





Provision for Income Taxes



For the quarter ended March 31, 2001, the provision for income taxes was $1,083,000, representing 31.2% of pre-tax income.  The provision for the quarter ended March 31, 2000 was $6,780,000, representing 38.5% of pre-tax income.
The Company's effective tax rate is less than the statutory rate, primarily due to low income housing tax credits, and the cumulative effect of a change in accounting principle is presented net of tax at the statutory rate thereby causing the reduction of
the provision for taxes as a percentage of pre-tax income.





Cumulative Effect of a Change in Accounting Principle



On January 1, 2001, the Company adopted Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," ("FAS No. 133"). On that date a transition adjustment
of $8,561,000 was recorded. The transition adjustment is presented net of tax in the amount of $4,962,000 as a cumulative effect of a change of accounting principle in the Company's statements of income. The Company has received rights to acquire stock in
the form of warrants, as an adjunct to its high technology banking relationships. Most of the warrants contain a cashless exercise provision thereby qualifying them as derivatives under FAS No. 133, requiring they be carried at fair value. The amount
represents the difference between the carrying value of the Company's derivatives and their fair value.





Other Matters



In April 2001, an adverse verbal ruling was issued with respect to a claim by the Bank against a borrower relating to a non-accrual loan with $3.1 million of principal outstanding as of March 31, 2001. This ruling disallowed the
Bank's claim for principal and interest with respect to the loan. The Bank has conferred with its counsel and intends to appeal. Management believes that it is reasonably probable that the ruling will be overturned and no additional charge-offs or
additions to the allowance for credit losses will be required.





FINANCIAL CONDITION



Total assets as of March 31, 2001 were $2,030.8 million representing a $61.7 million, or 3.1%, increase from total assets of $1,969.1 million as of December 31, 2000.  The growth of total assets from December 31, 2000 to March 31,
2001 was primarily funded by an increase of total borrowings from the Federal Home Loan Bank of $48.0 million.  Loans and leases and stockholders' equity were at record levels, as of March 31, 2001.



Loans and Leases



As of March 31, 2001, total loans and leases were $1,016.1 million compared to $969.0 million as of December 31, 2000, representing a $47.1 million, or 4.9% increase.  The increase was due to growth of $19.9 million and $33.8
million in the commercial and real estate construction portfolios, respectively.



The following table sets forth the amount of loans and leases outstanding by category and the percentage of each category to the total loans and leases outstanding:





|<TABLE>                     |                |                  
|--------------------------- | -------------- | -----------------
|<CAPTION>                   |                |                  
|                            | March 31, 2001 | December 31, 2000
|(In Thousands)              | Amount         | Percentage       
|<S>                         | <C>            | <C>              
|Commercial                  | $ 469,423      | 46.20%           
|Real Estate
-

Construction | 200,462        | 19.73%           
|Real Estate
-

Conventional | 306,860        | 30.20%           
|Installment                 | 14             | N/A              
|Other Loans                 | 22,097         | 2.18%            
|Leveraged Leases            | 17,196         | 1.69%            
|Total                       | $ 1,016,052    | 100.00%          
|</TABEL>                    |                |                  



N/A = Percentage less than 0.01



Non-performing Assets

A certain degree of risk is inherent in the extension of credit.  Management believes that it has credit policies in place to assure minimizing the level of loan losses and non-performing loans.  The Company performs a quarterly
assessment of the credit portfolio to determine the appropriate level of the allowance.  Included in the assessment is the identification of loan impairment.  A loan is identified as impaired when it is probable that interest and principal will not be
collected in accordance with the contractual terms of the loan agreement.  Loan impairment is measured by estimating the expected future cash flows and discounting them at the respective effective interest rate or by valuing the underlying collateral.



The Company has a policy of classifying loans (including impaired loans) which are 90 days past due as to principal and/or interest as non-accrual loans unless management determines that the fair value of underlying collateral is
substantially in excess of the loan amount or circumstances justify treating the loan as fully collectible.  After a loan is placed on non-accrual status, any interest previously accrued but not yet collected, is reversed against current income.  A loan
is returned to accrual status only when the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, and the borrower has demonstrated a sustained period of repayment performance in accordance with the
contractual terms.  Interest received on non-accrual loans generally is either applied as principal reduction or reported as recoveries on amounts previously charged-off, in accordance with management's judgment as to the collectability of principal.



The following table provides information on the Company's past due loans, non-accrual loans, restructured loans and other real estate owned, net, as of the dates indicated:





|<TABLE>                                           |                |                  
|------------------------------------------------- | -------------- | -----------------
|<CAPTION>                                         |                |                  
|                                                  |                |                  
|(IN THOUSANDS)                                    | March 31, 2001 | December 31, 2000
|<S>                                               | <C>            | <C>              
|                                                  |                |                  
|Loans 90 Days or More Past Due and Still Accruing | $ 10,145       | $ 2,217          
|Non-accrual Loans                                 | 23,638         | 14,823           
|Total Past Due Loans                              | 33,783         | 17,040           
|Restructured Loans (on Accrual Status)            | 3,491          | 4,978            
|Total Non-performing and Restructured Loans       | 37,274         | 22,018           
|Other Real Estate Owned, Net                      | 1,054          | 1,035            
|Total Non-performing Assets                       | $ 38,328       | $ 23,053         
|</TABLE>                                          |                |                  





Total non-performing assets increased from $23.1 million to $38.3 million from December 31, 2000 to March 31, 2001.  The $15.2 million, or 66.3%, increase was the result of the increase of total past due loans.





Loans 90 Days or More Past Due



Seven borrowers with loans totaling $10.1 million are past due 90 days but still accruing, representing an increase of $7.9 million compared to the prior quarter-end. In the case of five of the borrowers with past due loans
totaling $7.7 million, interest is now current and the loan has either been renewed or the extension is in process. In the case of the sixth borrower with $2.0 million of past due notes, renewal is in process with interest to be brought current. The past
due note of the seventh borrower totaling $0.4 million is cash collateralized. There is no loss of principal or interest expected on these credits.





Non-accrual loans



The non-accrual loans increased $8.8 million or 59.5%, to $23.6 million at March 31, 2001 from $14.8 million at December 31, 2000.  The increase was primarily due to the deterioration in the condition of existing problem commercial
loans.



The following table identifies the components of the increase in non-accrual loans during the three months ended March 31, 2001:





Non-Accrual Loans (In Thousands)





|<TABLE>                          |        
|-------------------------------- | -------
|<CAPTION>                        |        
|                                 |        
|Non-Accrual Loans (In Thousands) |        
|                                 |        
|<S>                              | <C>    
|Balance, December 31, 2000       | $14,823
|Add: Loans placed on non-accrual | 18,476 
|Less: Charge-offs                | (3,075)
|Returned to accrual status       | (1,412)
|Repayments                       | (5,151)
|Transfer to OREO                 | (23)   
|Balance, March 31, 2001          | $23,638
|</TABLE>                         |        





The following table breaks out the Company's non-accrual loans by category as of March 31, 2001 and December 31, 2000:







|<TABLE>                  |                |                  
|------------------------ | -------------- | -----------------
|<CAPTION>                |                |                  
|(IN THOUSANDS)           | March 31, 2001 | December 31, 2000
|<S>                      | <C>            | <C>              
|Commercial               | $ 16,064       | $ 14,823         
|Real Estate-Construction | 6,157          | -                
|Real Estate-Conventional | 1,417          | -                
|Total                    | $23,638        | $14,823          
|</TABLE>                 |                |                  



Restructured Loans



As of March 31, 2001, the balance of restructured loans was $3.5 million compared to $5.0 million as of December 31, 2000. The decline was due to the pay off of a $1.5 million restructured loan, which resulted in a $0.5 million
recovery to the allowance for credit losses. A loan is categorized as restructured if the original interest rate on such loan, the repayment terms, or both, are modified due to a deterioration in the financial condition of the borrower.  Restructured
loans may also be put on a non-accrual status in keeping with the Bank's policy of classifying loans which are 90 days past due as to principal and/or interest.  Restructured loans which are non-accrual loans are not included in the balance of
restructured loans.  As of March 31, 2001, there was one restructured loan of $64,000 on non-accrual status.  As of March 31, 2001, restructured loans, excluding the non-accrual loan noted above, consisted of five credits. The weighted average yield of
the restructured loans as of March 31, 2001 was 10.26%.



There are no commitments to lend additional funds on any of the restructured loans.





Other Real Estate Owned



As of March 31, 2001, other real estate owned ("OREO"), net of valuation allowance of $0.9 million, totaled $1.1 million, as compared to the net balance of $1.0 million, net of valuation allowance of $0.9 million, as of
December 31, 2000.  As of March 31, 2001, OREO consisted of 7 properties, up from 6 properties, as of December 31, 2000.



The OREO properties are all physically located in the Bank's market area.  They include single family residences, commercial and industrial buildings, and land.  Two properties comprise the land category of OREO.  The Company
intends to enter into a partnership to develop one of the land properties. There is no intent to develop the other land property.



The following table sets forth the Bank's OREO by property type, as of the dates indicated:



|<TABLE>                   |           |             
|------------------------- | --------- | ------------
|<CAPTION>                 |           |             
|                          |           |             
|                          | March 31, | December 31,
|(In Thousands)            | 2001      |             
|Property Type             |           |             
|<S>                       | <C>       |             
|Single-Family Residential | $ 19      |             
|Land                      | 471       |             
|Retail Facilities         | 803       |             
|Industrial Facilities     | 652       |             
|Less: Valuation Allowance | (891)     |             
|                          |           |             
|Total                     | $ 1,054   |             
|                          |           |             
|</TABLE>                  |           |             



Impaired Loans



A loan is identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement.  Loan impairment is measured by estimating the expected future cash
flows and discounting them at the respective effective interest rate or by valuing the underlying collateral. Of the $ 23.6 million of net recorded investment of impaired loans as of March 31, 2001, $1.5 million is included in the balance of restructured
loans and is performing pursuant to the terms and conditions of the restructuring.   The following table discloses pertinent information as it relates to the Company's impaired loans as of the dates indicated:





|<TABLE>                                       |                |              
|--------------------------------------------- | -------------- | -------------
|<CAPTION>                                     |                |              
|                                              |                |              
|(IN THOUSANDS)                                | March 31, 2001 | Dec. 31, 2000
|<S>                                           | <C>            | <C>          
|Recorded Investment with Related Allowance    | $21,203        | $9,598       
|Recorded Investment with no Related Allowance | 2,396          | 3,778        
|Gross Recorded Investment                     | 23,599         | 13,376       
|Allowance for Impaired Loans                  | 5,361          | 2,626        
|Net Investment in Impaired Loans              | 18,238         | 10,750       
|</TABLE>                                      |                |              





The average balance of total recorded investment in impaired loans was $18.5 million for the three months ended March 31, 2001 and $20.4 million for the twelve months ended December 31, 2000.



For the quarter ended March 31, 2001 and 2000, interest income recognized on impaired loans was $75,000 and $178,000, respectively.  Of the amount of interest income recognized during the quarters ended March 31, 2001 and 2000, no
interest was recognized under the cash basis method.



Management cannot predict the extent to which the current economic environment, including the real estate market, may continue to improve or worsen, or the full impact such environment may have on the Bank's loan portfolio.
Furthermore, as the Bank's primary regulators review the loan portfolio as part of their routine, periodic examinations of the Bank, their assessment of specific credits may affect the level of the Bank's non-performing loans.  Accordingly, there can be
no assurance that other loans will not be placed on non-accrual, become 90 days or more past due, have terms modified in the future, or become OREO.





Allowance for Credit Losses



As of March 31, 2001, the balance of the allowance for credit losses was $22.3 million, representing 2.19% of outstanding loans and leases.  This compares to an allowance for credit losses of $19.4 million as of December 31, 2000,
representing 2.00% of outstanding loans and leases.



The table below summarizes the activity in the allowance for credit losses (which amount includes the allowance on impaired loans), for the three-month period ended as indicated:

|<TABLE>                        |                |               
|------------------------------ | -------------- | --------------
|<CAPTION>                      |                |               
|(IN THOUSANDS)                 | March 31, 2001 | March 31, 2000
|<S>                            | <C>            | <C>           
|Balance, Beginning of Period   | $19,426        | $19,808       
|Provision for Credit Losses    | 6,000          | -             
|Charge-offs                    | (3,804)        | (20)          
|Recoveries                     | 676            | 157           
|Net (Charge-offs) / Recoveries | (3,128)        | 137           
|Balance, End of Period         | $22,298        | $19,945       
|</TABLE>                       |                |               



As of March 31, 2001, the allowance represents 94.3% of non-accrual loans and 59.8% of non-performing and restructured loans combined.  As of December 31, 2000, the allowance represented 131% of non-accrual loans and 88.2% of
non-performing and restructured loans combined.



The provision for credit losses is an amount required to maintain an allowance for credit losses that is adequate to cover probable credit losses related to specifically identified loans as well as probable credit losses inherent in
the remainder of the loan and lease portfolio. Management evaluates the loan portfolio, the economic environment, historical loan loss experience, collateral values and assessments of borrowers' ability to repay, in determining the amount of the allowance
for credit losses. The balance of the allowance for credit losses is an accounting estimate of probable but unconfirmed losses in the Bank's loan portfolio as of March 31, 2001. Such an amount is based on ongoing, quarterly assessments of the probable
estimated losses inherent in the loan and lease portfolio, and to a lesser
extent, unused commitments to provide financing. The Company's methodology for assessing the appropriateness of the allowance consists primarily of the use of a formula allowance.



The formula allowance is calculated by applying loss factors to outstanding loans and leases and certain unused commitments, in each case based on the internal risk rating of such loans, pools of loans, leases or commitments.
Changes in risk rating of both performing and non-performing loans affect the amount of the formula allowance.  Loss factors are based on the Company's historical loss experience and may be adjusted for significant factors that, in management's judgement,
affect the collectibility of the portfolio as of the evaluation date.  Loss factors are described as follows:



- Problem graded loan loss factors represent percentages which have proven accurate over time.  Such factors are checked against and supported by migration analysis which tracks loss experience over a five-year period.



- Pass graded loan loss factors are based on the approximate average annual net charge-off rate over an eight-year period.



- Pooled loan loss factors (not individually graded loans) are based on probable net charge-offs.  Pooled loans are loans and leases that are homogeneous in nature, such as residential mortgage loans and small business loans.



Management believes that the allowance for credit losses is adequate to cover known and inherent losses related to loans and leases outstanding as of March 31, 2001.





Securities



The Company classifies its securities as held to maturity, trading or available for sale.  Securities classified as held to maturity are those that the Company has the positive intent and ability to hold until maturity.  These
securities are carried at amortized cost.



Common shares of companies held principally for the purpose of selling them in the near term are classified as trading and are reported at fair value with unrealized gains/losses included in earnings.



Securities that could be sold in response to changes in interest rates, increased loan demand, liquidity needs, capital requirements or other similar factors, are classified as securities available for sale.  These securities are
carried at fair value, with unrealized gains or losses reflected net of tax in
accumulated other comprehensive income.



As of March 31, 2001, the Company recorded net unrealized gains of $23,370,000 on its available for sale portfolio.  Accumulated other comprehensive income includes $13,544,000, representing the net unrealized gains, net of tax.



The amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities as of March 31, 2001 and December 31, 2000 were as follows:



|<TABLE>                               |           |            |            |          
|------------------------------------- | --------- | ---------- | ---------- | ---------
|<CAPTION>                             |           |            |            |          
|                                      |           | Gross      | Gross      |          
|(In Thousands)                        | Amortized | Unrealized | Unrealized | Fair     
|March 31, 2001                        | Cost      | Gains      | Losses     | Value    
|<S>                                   | <C>       | <C>        | <C>        | <C>      
|Securities Held to Maturity           |           |            |            |          
|U.S. Government Agencies              | $ 959     | $ -        | $ -        | $ 959    
|                                      |           |            |            |          
|Total                                 | $ 959     | $ -        | $ -        | $ 959    
|                                      |           |            |            |          
|Securities Available for Sale         |           |            |            |          
|U.S. Government Agencies              | $ 20,662  | $ 925      | $ -        | $ 21,587 
|Mortgage Backed Securities            | 88,111    | 1,612      | -          | 89,723   
|Commercial Mortgage Backed Securities | 68,317    | 3,484      | -          | 71,801   
|Corporate Notes                       | 96,743    | 5,361      | -          | 102,104  
|Collateralized Mortgage Obligations   | 289,729   | 6,078      | -          | 295,807  
|Asset Backed Securities               | 287,521   | 5,910      | -          | 293,431  
|Other Securities                      | 3,840     | -          | -          | 3,840    
|                                      |           |            |            |          
|Total                                 | $854,923  | $23,370    | $ -        | $878,293 
|                                      |           |            |            |          
|Trading Account Securities            |           |            |            |          
|Equity Issues                         | $ -       | $ -        | $ -        | $ 1,335  
|                                      |           |            |            |          
|Total                                 | $ -       | $ -        | $ -        | $ 1,335  
|</TABLE>                              |           |            |            |          
|<TABLE>                               |           |            |            |          
|<CAPTION>                             |           |            |            |          
|                                      |           | Gross      | Gross      |          
|(In Thousands)                        | Amortized | Unrealized | Unrealized | Fair     
|December 31, 2000                     | Cost      | Gains      | Losses     | Value    
|<S>                                   | <C>       | <C>        | <C>        | <C>      
|Securities Held to Maturity           |           |            |            |          
|U.S. Government Agencies              | $ 1,025   | $ -        | $ (57)     | $ 968    
|                                      |           |            |            |          
|Total                                 | $ 1,025   | $ -        | $ (57)     | $ 968    
|                                      |           |            |            |          
|Securities Available for Sale         |           |            |            |          
|U.S. Government Agencies              | $ 20,854  | $ 526      | $ -        | $ 21,380 
|Mortgage Backed Securities            | 93,147    | 1,115      | -          | 94,262   
|Commercial Mortgage Backed Securities | 69,504    | 2,898      | -          | 72,402   
|Corporate Notes                       | 84,975    | 900        | -          | 85,875   
|Collateralized Mortgage Obligations   | 263,287   | 3,414      | -          | 266,701  
|Asset Backed Securities               | 303,221   | 2,330      | -          | 305,551  
|Other Securities                      | 3,314     | 5,898      | -          | 9,212    
|                                      |           |            |            |          
|Total                                 | $ 838,302 | $ 17,081   | $ -        | $ 855,383
|                                      |           |            |            |          
|Trading Account Securities            |           |            |            |          
|Equity Issues                         | $ -       | $ -        | $ -        | $ 4,637  
|                                      |           |            |            |          
|Total                                 | $ -       | $ -        | $ -        | $ 4,637  
|                                      |           |            |            |          
|</TABLE>                              |           |            |            |          





As of March 31, 2001, the net book value of total investment securities was $855.9 million, of which $96.7 million is unsecured corporate debt, as shown below (dollars in millions):

|<TABLE>             |      
|------------------- | -----
|<CAPTION>           |      
|<S>                 | <C>  
|Lehman Brothers     | $15.0
|Aristar Inc.        | 10.1 
|Bear Stearns        | 9.8  
|Household Financial | 9.7  
|American General    | 4.8  
|CIT Group           | 9.9  
|Heller Financial    | 10.0 
|Countrywide Credit  | 1.9  
|Ford Motor Credit   | 10.0 
|Finova Capital Corp | 9.4  
|Daimler Chrysler    | 6.1  
|Total:              | $96.7
|</TABLE>            |      



As of March 31, 2001, trading securities totaled $1.3 million and were comprised of three equity issues. The equity securities are non-interest bearing instruments.



There were no sales of securities available for sale or securities held to maturity during the quarter ended March 31, 2001 and 2000.





Other Investments



As of March 31, 2001, other investments totaled $16.3 million. The balance is comprised of various venture capital funds that invest in technology companies. As of March 31, 2001, undisbursed commitments to invest in these various
funds totaled $7.3 million. In addition to seeking an appropriate return from such investments, the Company seeks to use the investments to increase its high technology banking business. Also included in other investments is a 10% equity interest in an
aircraft finance trust ("AFT") totaling $7.5 million as of March 31, 2001. AFT owns a number of aircraft which it leases to different lessees in various countries. All these partnership interests are accounted for by the equity method.



Deposits



The Company's deposits totaled $1,670.3 million as of March 31, 2001, a decrease of $4.3 million from $1,674.6 million as of December 31, 2000.  All deposit categories reflected declines with the exception of time certificate of
deposit of $100,000 or more, which increased $14.1 million from $826.2 million as of December 31, 2000 to $840.3 million, as of March 31, 2001.



There were no brokered deposits outstanding as of March 31, 2001 and December 31, 2000.  The Company believes that the majority of its deposit customers have strong ties to the Bank.  Although the Company has a significant amount
of time certificates of deposit of $100,000 or more having maturities of one year or less, and has experienced growth in this area, the depositors have generally renewed their deposits in the past at their maturity.



The maturity schedule of time certificates of deposit of $100,000 or more as of March 31, 2001 is as follows:





|<TABLE>                         |         
|------------------------------- | --------
|<CAPTION>                       |         
|(IN THOUSANDS)                  |         
|<S>                             | <C>     
|3 Months or Less                | $338,108
|Over 3 Months Through 6 Months  | 246,685 
|Over 6 Months through 12 Months | 249,066 
|Over 12 Months                  | 6,399   
|Total                           | $840,258
|</TABLE>                        |         



Other Borrowings



Subordinated debt is comprised of a $40 million public offering issuance of 8.375% subordinated notes due August 1, 2007.  Proceeds of $38.7 million, net of underwriting discount of $1.3 million, were received by the Company.  The
discount is amortized as a yield adjustment over the 10-year life of the notes.



The Bank has obtained advances from the Federal Home Loan Bank of San Francisco (the "FHLB") totaling $73.0 million.  The advances are under an existing line of credit whereby the FHLB has granted the Bank a line of
credit equal to 25 percent of its assets.  The following relates to the outstanding advances as of March 31, 2001:



|<TABLE>          |                |                       
|---------------- | -------------- | ----------------------
|<CAPTION>        |                |                       
|Maturity         | Amount         | Fixed Rate of Interest
|                 | (In Thousands) |                       
|<S>              | <C>            | <C>                   
|April 30, 2001   | $10,000        | 4.92%                 
|April 18, 2002   | 10,000         | 4.71%                 
|July 15, 2002    | 5,000          | 5.61%                 
|January 15, 2003 | 5,000          | 4.96%                 
|March 14, 2003   | 10,000         | 4.98%                 
|April 25, 2003   | 10,000         | 4.91%                 
|May 27, 2003     | 10,000         | 5.25%                 
|March 15,2004    | 13,000         | 5.25%                 
|</TABLE>         |                |                       

The total outstanding of $73 million of advances as of March 31, 2001 has a composite fixed rate of interest of 5.05%.



Capital Resources



Stockholders' equity totaled $199.1 million as of March 31, 2001, an increase of $11.3 million, or 6.0%, from $187.8 million, as of December 31, 2000.



An analysis of the change in stockholders' equity is as follows:



|<TABLE>                                                           |         
|----------------------------------------------------------------- | --------
|<CAPTION>                                                         |         
|                                                                  |         
|Stockholders' Equity                                              | Amount  
|(In Thousands)                                                    |         
|<S>                                                               | <C>     
|Balance as of December 31, 2000                                   | $187,782
|Repurchase of Stock                                               | (4,174) 
|Net Income                                                        | 7,347   
|Cash Dividends Declared                                           | (1,417) 
|Change in Securities Valuation, Net of Tax                        | 3,644   
|Stock Issuance (includes $2,077 of stock options
      exercised) | 2,980   
|Tax Benefits related to Exercise of Stock Options                 | 2,912   
|                                                                  |         
|Balance as of March 31, 2001                                      | $199,074
|</TABLE>                                                          |         



On December 20, 1999, the Board of Directors authorized a stock repurchase program approving the buy-back of up to $10 million of the Company's stock.  For the three months ended March 31, 2001, 140,100 shares had been repurchased
at an average cost of $29.80 per share for a total of $4.2 million.  As of April 25, 2001, this program was completed. 384,154 shares had been repurchased for a total of $10 million at an average cost per share of $26.03.



In February, 2001, the Board of Directors authorized a stock repurchase program approving the buy-back of up to 500,000 shares of the Company's stock.  As of May 11, 2001, 68,400 shares had been repurchased at an average cost of
$24.23 per share for a total of $1.7 million



Capital ratios for the Company and for the Bank were as follows as of the dates indicated:



|<TABLE>                         |                  |           |             
|------------------------------- | ---------------- | --------- | ------------
|<CAPTION>                       |                  |           |             
|                                |                  |           |             
|                                | Well-Capitalized | March 31, | December 31,
|                                | Requirements     | 2001      | 2000        
|<S>                             | <C>              | <C>       | <C>         
|GBC Bancorp                     |                  |           |             
|Tier 1 Leverage Ratio           | 5%               | 9.53%     | 8.96%       
|Tier 1 Risk-Based Capital Ratio | 6%               | 10.41%    | 10.23%      
|Total Risk-Based Capital Ratio  | 10%              | 13.86%    | 13.75%      
|General Bank                    |                  |           |             
|Tier 1 Leverage Ratio           | 5%               | 10.08%    | 9.63%       
|Tier 1 Risk-Based Capital Ratio | 6%               | 11.06%    | 11.13%      
|Total Risk-Based Capital Ratio  | 10%              | 12.31%    | 12.26%      
|</TABLE>                        |                  |           |             



For the quarter ended March 31, 2001, the ratio of the Company's average stockholders' equity to average assets was 9.92%.  For the year ended December 31, 2000, this ratio was 8.12%.



GBC Bancorp Executive Obligation Trust (The "Trust")



In the first quarter, 2000, the Company entered into a trust agreement providing for the Trust with Union Bank of California as trustee. As of March 31, 2001, 96,935 shares of Company stock have been issued and transferred to the
Trust. Such shares represent the earned deferred
compensation of the Company's Chairman.



In the consolidated financial statements, the shares held in the Trust are reduced from common stock and included as a separate component of retained earnings. As of  March 31, 2001, this amount was $2,474,000, representing the cost of
the 96,935 shares held in the Trust.



Liquidity



Liquidity measures the ability of the Company to meet fluctuations in deposit levels, to fund its operations and to provide for customers' credit needs.  Liquidity is monitored by management on an on-going basis.  Asset liquidity
is provided by cash and short-term financial instruments which include federal funds sold and securities purchased under agreements to resell, unpledged securities held to maturity maturing within one year and unpledged securities available for sale.
These sources of liquidity amounted to  $784.4 million, or 38.6%, of total assets, as of March 31, 2001, compared to $785.0 million, or 39.9%, of total assets, as of December 31, 2000.



To further supplement its liquidity, the Company has established federal funds lines with correspondent banks and three master repurchase agreements with major brokerage companies.  In August, 1992 the Federal Home Loan Bank of San
Francisco ("FHLB") granted the Bank a line of credit equal to 25 percent of assets with terms up to 360 months. As of March 31, 2001, the Company has $73 million outstanding under this financing facility.  Management believes its liquidity sources to be
stable and adequate.



As of March 31, 2001, total loans and leases represented 60.8% of total deposits.  This compares to 57.9% as of  December 31, 2000.



The liquidity of the parent company, GBC Bancorp, is primarily dependent on the payment of cash dividends by its subsidiary, General Bank, subject to the limitations imposed by the Financial Code of the State of California.  For
the three months ending March 31, 2001, General Bank declared cash dividends of $1.4 million to GBC Bancorp.





"GAP" Measurement



While no single measure can completely identify the impact of changes in interest rates on net interest income, one gauge of interest rate sensitivity is to measure, over a variety of time periods, contractual differences in the
amounts of the Company's rate sensitive assets and rate sensitive liabilities. These differences, or "gaps", provide an indication of the extent that net interest income may be affected by future changes in interest rates.  However, these contractual
"gaps" do not take into account timing differences between the repricing of assets and the repricing of liabilities.



A positive gap exists when rate sensitive assets exceed rate sensitive liabilities and indicates that a greater volume of assets than liabilities will reprice during a given period. This mismatch may enhance earnings in a rising
rate environment and may inhibit earnings when rates decline. Conversely, when rate sensitive liabilities exceed rate sensitive assets, referred to as a negative gap, it indicates that a greater volume of liabilities than assets will reprice during the
period. In this case, a rising interest rate environment may inhibit earnings and declining rates may enhance earnings.



"Gap" reports are utilized as a means to provide management with a tool to monitor repricing differences, or "gaps", between assets and liabilities repricing in a specified period, based upon their underlying
contractual rights.  The use of "gap" reports is thus limited to a quantification of the "mismatch" between assets and liabilities repricing within a unique specified timeframe.  Contractual "gap" reports cannot be used to
quantify exposure to interest rate changes because they do not take into account timing differences between repricing assets and liabilities, and changes in the amount of prepayments.



As of March 31, 2001 there is a cumulative one year negative "gap" of $650.7 million. As of December 31, 2000, there was a cumulative one year negative "gap" of $667.8 million.



The following table indicates the Company's interest rate sensitivity position as of March 31, 2001, and is based on contractual maturities.  It may not be representative of positions in subsequent periods.



<TABLE>

<CAPTION>

|                                                                                                      |  | March 31, 2001 |  |             |  |                             |  |           |  |                 | 
|----------------------------------------------------------------------------------------------------- |  | -------------- |  | ----------- |  | --------------------------- |  | --------- |  | --------------- | 
|                                                                                                      |  |                |  |             |  | INTEREST SENSITIVITY PERIOD |  |           |  |                
|                                                                                                      |  | 0 to 90        |  | 91 to 365   |  | Over 1 Year                 |  | Over      |  | Non-Interest    | 
|(In Thousands)                                                                                        |  | Days           |  | Days        |  | to 5 Years                  |  | 5 Years   |  | Earning/Bearing | 
|<S>                                                                                                   |  | <C>            |  | <C>         |  | <C>                         |  | <C>       |  | <C>             | 
|Earning Assets                                                                                        |  |                |  |             |  |                             |  |           |  |                 | 
|Securities Available for Sale                                                                         |  | $ 9,322        |  | $ -         |  | $ 122,815                   |  | $ 746,156 |  | $ -             | 
|Securities Held to Maturity                                                                           |  | -              |  | -           |  | 959                         |  | -         |  | -               | 
|                                                                                                      |  | -              |  | -           |  | -                           |  | -         |  | -               | 
|Trading Account Securities                                                                            |  | -              |  | -           |  | -                           |  | -         |  | 1,335           | 
|Federal Funds Sold & Securities                                                                       |  |                |  |             |  |                             |  |           |  |                 | 
|Purchased Under Agreement to Resell                                                                   |  | 66,500         |  | -           |  | -                           |  | -         |  | -               | 
|Loans and Leases (1) (2)                                                                              |  | 714,082        |  | 24,445      |  | 135,639                     |  | 118,248   |  | -               | 
|Non-Earning Assets (2)                                                                                |  | -              |  | -           |  | -                           |  | -         |  | 91,331          | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Total Earning Assets                                                                                  |  | $ 789,904      |  | $ 24,445    |  | $ 259,413                   |  | $ 864,404 |  | $ 92,666        | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Source of Funds for Assets                                                                            |  |                |  |             |  |                             |  |           |  |                 | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Deposits:                                                                                             |  |                |  |             |  |                             |  |           |  |                 | 
|Demand - N/B                                                                                          |  | $ -            |  | $ -         |  | $ -                         |  | $ -       |  | $ 207,080       | 
|Interest Bearing Demand                                                                               |  | 377,869        |  | -           |  | -                           |  | -         |  | -               | 
|Savings                                                                                               |  | 65,778         |  | -           |  | -                           |  | -         |  | -               | 
|TCD'S Under $100,000                                                                                  |  | 68,431         |  | 109,074     |  | 1,833                       |  | -         |  | -               | 
|TCD'S $100,000 and Over                                                                               |  | 338,108        |  | 495,751     |  | 6,399                       |  | -         |  | -               | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Total Deposits                                                                                        |  | $ 850,186      |  | $ 604,825   |  | $ 8,232                     |  | $ -       |  | $ 207,080       | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Borrowings from the Federal Home Loan Bank                                                            |  | $ 10,000       |  | $ -         |  | $ 63,000                    |  | $ -       |  | $ -             | 
|Subordinated Debt                                                                                     |  | -              |  | -           |  | -                           |  | 39,170    |  | -               | 
|Other Liabilities                                                                                     |  | -              |  | -           |  | -                           |  | -         |  | 49,265          | 
|Stockholders' Equity                                                                                  |  | -              |  | -           |  | -                           |  | -         |  | 199,074         | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Total Liabilities and                                                                                 |  |                |  |             |  |                             |  |           |  |                 | 
|Stockholders' Equity                                                                                  |  | $ 860,186      |  | $ 604,825   |  | $ 71,232                    |  | $ 39,170  |  | $ 455,419       | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Interest Sensitivity Gap                                                                              |  | $ (70,282)     |  | $ (580,380) |  | $ 188,181                   |  | $ 825,234 |  | $ (362,753)     | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Cumulative Interest Sensitivity                                                                       |  |                |  |             |  |                             |  |           |  |                 | 
|Gap                                                                                                   |  | ($70,282)      |  | ($650,662)  |  | ($462,481)                  |  | $362,753  |  | -               | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Gap Ratio (% of Total Assets)                                                                         |  | -3.5%          |  | -28.6%      |  | 9.3%                        |  | 40.6%     |  | -17.8%          | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|Cumulative Gap Ratio                                                                                  |  | -3.5%          |  | -32.1%      |  | -22.8%                      |  | 17.8%     |  | 0.0%            | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 
|(1) Loans and leases are before unamortized deferred loan
      fees and allowance for credit losses. |  |                |  |             |  |                             |  |          
|(2) Non-accrual loans are included in non-earning assets.                                             |  |                |  |             |  |                             |  |           |  |                 | 
|                                                                                                      |  |                |  |             |  |                             |  |           |  |                 | 

</TABLE>

Effective asset/liability management includes maintaining adequate liquidity and minimizing the impact of future interest rate changes on net interest income. The Company attempts to manage its interest rate sensitivity on an on-going
basis through the analysis of the repricing characteristics of its loans, securities, and deposits, and managing the estimated net interest income volatility by adjusting the terms of its interest-earning assets and liabilities, and through the use of
derivatives as needed.



Market Risk



Market risk is the risk of financial loss arising from adverse changes in market prices and interest rates.  The Company's market risk is inherent in its lending and deposit taking activities to the extent of differences in the
amounts maturing or degree of repricing sensitivity.  Adverse changes in market prices and interest rates may therefore result in diminished earnings and ultimately an erosion of capital.



Since the Company's profitability is affected by changes in interest rates, management actively monitors how changes in interest rates may affect earnings and ultimately the underlying market value of equity.  Management monitors
interest rate exposure through the use of three basic measurement tools in conjunction with established risk limits.  These tools are the expected maturity gap report, net interest income volatility and market value of equity volatility reports.  The gap
report details the expected maturity mismatch or gap between interest earning assets and interest bearing liabilities over a specified timeframe.  The expected gap differs from the contractual gap report shown earlier in this section by adjusting
contractual maturities for expected prepayments of principal on loans and amortizing securities as well as the projected timing of repricing non-maturity deposits.  The following table indicates the Company's financial instruments that are sensitive to
changes in interest rates categorized by their expected maturity, as of March 31, 2001:



<TABLE>

<CAPTION>

|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|-------------------------------------------------------------------------------------------------------------------------------- |  | --------- |  | --------- |  | ----------- |  | --------- |  | -----------
|                                                                                                                                 |  | 0 to 90   |  | 91 to 365 |  | Over 1 Year |  | Over      |  |            
|(In Thousands)                                                                                                                   |  | Days      |  | Days      |  | to 5 Years  |  | 5 Years   |  | Total      
|<S>                                                                                                                              |  | <C>       |  | <C>       |  | <C>         |  | <C>       |  | <C>        
|Interest-sensitive Assets                                                                                                        |  |           |  |           |  |             |  |           |  |            
|Securities Available for Sale                                                                                                    |  | $ 53,115  |  | $ 168,879 |  | $ 552,617   |  | $ 103,682 |  | $ 878,293  
|Securities Held to Maturity                                                                                                      |  | 959       |  | -         |  | -           |  | -         |  | 959        
|Federal Funds Sold & Securities                                                                                                  |  |           |  |           |  |             |  |           |  |            
|Purchased Under Agreements to Resell                                                                                             |  | 66,500    |  | -         |  | -           |  | -         |  | 66,500     
|Loans and Leases (1)                                                                                                             |  | 714,082   |  | 24,445    |  | 135,639     |  | 118,248   |  | 992,414    
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|Total Interest-earning Assets                                                                                                    |  | $ 834,656 |  | $ 193,324 |  | $ 688,256   |  | $ 221,930 |  | $ 1,938,166
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|Interest-sensitive Liabilities                                                                                                   |  |           |  |           |  |             |  |           |  |            
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|Deposits                                                                                                                         |  |           |  |           |  |             |  |           |  |            
|Interest Bearing Demand                                                                                                          |  | $ 19,322  |  | $ 57,972  |  | $ 188,505   |  | $ 112,070 |  | $ 377,869  
|Savings                                                                                                                          |  | 2,212     |  | 6,637     |  | 24,278      |  | 32,651    |  | 65,778     
|Time Certificates of Deposit                                                                                                     |  | 406,539   |  | 604,825   |  | 8,232       |  | -         |  | 1,019,596  
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|Total Deposits                                                                                                                   |  | $ 428,073 |  | $ 669,434 |  | $ 221,015   |  | $ 144,721 |  | $ 1,463,243
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|Borrowing from FHLB                                                                                                              |  | $ 10,000  |  | $ -       |  | $ 63,000    |  | $ -       |  | $ 73,000   
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|Subordinated Debt                                                                                                                |  | -         |  | -         |  | -           |  | 39,170    |  | 39,170     
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|Total Interest-sensitive Liabilities                                                                                             |  | $ 438,073 |  | $ 669,434 |  | $ 284,015   |  | $ 183,891 |  | $ 1,575,413
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|                                                                                                                                 |  |           |  |           |  |             |  |           |  |            
|(1) Loans and leases are net of non-accrual loans and before
    unamortized deferred loan fees and allowance for credit losses. |  |           |  |          

</TABLE>



Expected maturities of assets are contractual maturities adjusted for projected payment based on contractual amortization and unscheduled prepayments of principal as well as repricing frequency.  Expected maturities for deposits are
based on contractual maturities adjusted for projected rollover rates and changes in pricing for non-maturity deposits.  The Company utilizes assumptions supported by documented analysis for the expected maturities of its loans and repricing of its
deposits and relies on third party data providers for prepayment projections for amortizing securities.  The actual maturities of these instruments could vary significantly if future prepayments and repricing differ from the Company's expectations based
on historical experience.



The Company uses a computer simulation analysis to attempt to predict changes in the yields earned on assets and the rates paid on liabilities in relation to changes in market interest rates.  The net interest income volatility and
market value of equity volatility reports measure the exposure of earnings and capital respectively, to immediate incremental changes in market interest rates as represented by the prime rate change of from 100 to 200 basis points.  Market value of equity
is defined as the present value of assets minus the present value of liabilities and off balance sheet contracts.  The table below shows the estimated impact of changes in interest rates on net interest income and market value of equity as of March 31, 2001
:

<TABLE>

<CAPTION>

|                                                                                                         | Net Interest       | Market Value of             | 
|-------------------------------------------------------------------------------------------------------- | ------------------ | --------------------------- | 
|Change in Interest                                                                                       | Income Volatility  | Portfolio Equity Volatility | 
|Rates (Basis Points)                                                                                     | March 31, 2001 (1) | March 31, 2001 (2)          | 
|<S>                                                                                                      | <C>                | <C>                         | 
|+200                                                                                                     | 2.9%               | -9.6%                       | 
|+100                                                                                                     | 1.6%               | -4.1%                       | 
|-100                                                                                                     | -3.3%              | -0.4%                       | 
|-200                                                                                                     | -8.1%              | -2.3%                       | 
|                                                                                                         |                    |                             | 
|(1) The percentage change in this column represents net interest income
      of the Company for         |                   
|12 months in a stable interest rate environment versus the net interest
      income in the various      |                    |                            
|rate scenarios.                                                                                          |                    |                             | 
|(2) The percentage change in this column represents net portfolio value
      of the Company in a stable
|interest rate environment versus the net portfolio value in the various
      rate scenarios.            |                    |                            

</TABLE>



The Company's primary objective in managing interest rate risk is to minimize the adverse effects of changes in interest rates on earnings and capital.  In this regard the Company has established internal risk limits for net
interest income volatility given a 100 and 200 basis point decline in rates of 10% and 15% respectively, over a twelve month horizon.  Similarly, risk limits have been established for market value of equity volatility in response to a 100 and 200 basis
point increase in rates of 10% and 15%, respectively.





Recent Accounting Developments



In September 2000, SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities," a replacement of FASB Statement No. 125, was issued. It revises the standards for
accounting for securitizations  and other transfers of financial assets and collateral and requires certain disclosures, but it carries over most of SFAS No. 125's provisions without consideration. It is not expected that the adoption of SFAS No. 140 will
have a material impact on the Company's results of operations, financial position, or cash flows.





PART II - OTHER INFORMATION





Item 1. LEGAL PROCEEDINGS



In April, 2001 an adverse verbal ruling was issued with respect to a claim by the Bank against a borrower relating to a non-accrual loan with $3.1 million of principal outstanding at March 31, 2001. This ruling disallowed the
Bank's claim for principal and interest with respect to the loan. The Bank has conferred with its counsel and intends to appeal. Management believes that it is reasonably probable that the ruling will be overturned and no additional charge-offs nor
additions to the allowance for credit losses have been provided as a result of the ruling. Management does not believe that the outcome of other actions where the Company is subject to pending and threatened legal action will have a material adverse
effect on the Company's financial condition or results of operations.





Item 2.  CHANGES IN SECURITIES



There have been no changes in the securities of the Registrant during the quarter ended March 31, 2001.





Item 3.  DEFAULT UPON SENIOR SECURITIES



This item is not applicable.





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



No matters were submitted to a vote of the Company security holders during the quarter ended March 31, 2001.





Item 5.  OTHER INFORMATION



There are no events to be reported under this item.





Item 6.  EXHIBITS AND REPORTS ON FORM 8-K



a)  Exhibits: None.

1. Reports on Form 8-K:  None







PART III - SIGNATURES







SIGNATURES





Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.







GBC Bancorp

(Registrant)





Dated: May 14, 2001

/s/Peter Wu

Peter Wu, President and

Chief Executive Officer







Dated: May 14, 2001

/s/Peter Lowe

Peter Lowe, Executive

Vice President and

Chief Financial Officer