SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 10-Q

              Quarterly Report Pursuant to Section 13 or 15 (d) of
                      The Securities Exchanges Act of 1934

For the quarter ended                               Commission File No.  0-22058
   June 30, 2000

                        MERCHANTS NEW YORK BANCORP, INC.
             (Exact name of registrant as specified in its charter)

              Delaware                                   13-3650812
   (State or other jurisdiction of          (I.R.S. employer identification no.)
   incorporation or organization)

           275 Madison Avenue, New York, N.Y.                     10016-0001
        (Address or principal executive offices)                  (Zip Code)

        Registrant's telephone number, including area code: (212)973-6600

      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
                                                ------------      ------------


      As of July 31, 2000, there were 18,689,980 shares of common stock
outstanding, the Registrant's only class of stock.

<PAGE>

                           Merchants New York Bancorp
                           Quarter Ended June 30, 2000

                                                                           Page
                                                                           ----
 Part  I  Financial Information
     Item 1.  Financial Statements (Unaudited)

           Consolidated Balance Sheets                                      2
           Consolidated Statements of Income and
                Comprehensive Income                                        3
           Consolidated Statements of Changes in Stockholders' Equity       4
           Consolidated Statements of Cash Flows                            5
           Notes to Consolidated Financial Statements                       6

     Item 2.  Management's Discussion and Analysis of
        Financial Condition and Results of Operations                       7

     Item 3.  Quantitative and Qualitative Disclosures About
        Market Risk                                                         14

 Part  II  Other Information

     Item 6.  Exhibits and Reports on Form 8-K                              18


 Signatures                                                                 18

<PAGE>

                           Merchants New York Bancorp

                           Consolidated Balance Sheet

Part I - Item 1, Financial Statements

<TABLE>
<CAPTION>

                                                                                 June 30, 2000        December 31, 1999
-----------------------------------------------------------------------------------------------------------------------
                                                                                    (Unaudited)
<S>                                                                            <C>                     <C>
Assets
     Cash and due from banks ..........................................        $    43,799,577         $    32,940,883
     Federal funds sold ...............................................                      0              50,000,000
     Securities available for sale, at market value ...................            561,519,126             649,931,593
     Securities held to maturity (market value of $250,097,178  in
          2000 and $195,169,226 in 1999) ..............................            252,608,908             197,988,432
                                                                               ---------------------------------------
              Total securities ........................................            814,128,034             847,920,025
                                                                               ---------------------------------------
     Loans, net of unearned discounts .................................            479,455,787             437,097,287
          Less allowance for loan losses ..............................             10,281,864               9,108,216
                                                                               ---------------------------------------
              Total loans, net ........................................            469,173,923             427,989,071
                                                                               ---------------------------------------

     Premises and equipment, net ......................................              6,200,860               5,992,660
     Customers' liability on acceptances ..............................             19,071,652              12,134,217
     Other assets .....................................................             17,301,457              18,336,292
----------------------------------------------------------------------------------------------------------------------
          Total Assets ................................................        $ 1,369,675,503         $ 1,395,313,148
======================================================================================================================

Liabilities and Stockholders' Equity
     Deposits:
          Demand ......................................................        $   292,235,824         $   312,300,580
          NOW .........................................................             52,410,388              51,214,572
          Savings .....................................................             27,760,455              28,865,561
          Money market ................................................            200,078,302             191,972,362
          Time ........................................................            354,601,623             374,625,133
                                                                               ---------------------------------------
          Total deposits ..............................................            927,086,592             958,978,208
     Securities sold under repurchase agreements ......................            230,000,000             185,000,000
     FHLB term advances ...............................................             70,000,000             105,000,000
     Other short-term borrowings ......................................             12,096,202              20,047,500
     Acceptances outstanding ..........................................             19,071,652              12,134,217
     Other liabilities ................................................             14,732,981              14,945,286
                                                                               ---------------------------------------
          Total Liabilities ...........................................          1,272,987,427           1,296,105,211

Stockholders' Equity*
     Capital  stock: $.001 par value;  40,000,000 authorized shares;
          19,978,664 shares issued in 2000 and 1999 ...................                 19,978                  19,978
     Surplus ..........................................................             23,879,363              23,879,363
     Undivided profits ................................................            100,578,755              95,012,110
     Treasury stock at cost:  1,264,484 and 856,160 shares
          in 2000 and 1999, respectively ..............................            (19,335,924)            (12,570,633)
     Accumulated other comprehensive income, net of tax:
          Unrealized depreciation on securities available for sale ....             (8,454,096)             (7,132,881)
                                                                               ---------------------------------------
          Total Stockholders' Equity ..................................             96,688,076              99,207,937
----------------------------------------------------------------------------------------------------------------------
          Total Liabilities and Stockholders' Equity ..................        $ 1,369,675,503         $ 1,395,313,148
======================================================================================================================
</TABLE>

*     Shares are adjusted for 2-1 stock split, effective October 1999.

See accompanying notes to consolidated financial statements.


                                       2
<PAGE>

                           Merchants New York Bancorp

            Consolidated Statements of Income & Comprehensive Income
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      Three Months Ended June 30,        Six Months Ended June 30,
                                                                        2000             1999              2000            1999
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>              <C>              <C>              <C>
Interest and Dividend Income
    Loans ......................................................    $11,270,470     $ 7,808,691     $21,136,065     $15,083,696
    Investment securities:
      Taxable ..................................................     13,958,246      12,600,269      27,682,443      24,955,896
      Non-taxable ..............................................      1,140,547       1,160,140       2,297,825       2,328,193
    Other interest income ......................................        107,476          56,905         576,320         313,011
                                                                    ---------------------------     ---------------------------
      Total interest and dividend income .......................     26,476,739      21,626,005      51,692,653      42,680,796
                                                                    ---------------------------     ---------------------------
Interest Expense
    Deposits ...................................................      7,029,228       6,202,322      13,859,606      12,901,095
    Securities sold under repurchase agreements ................      3,513,593       2,132,225       6,179,224       4,064,963
    FHLB term advances .........................................      1,122,111         597,819       2,484,145       1,199,923
    Other short-term borrowings ................................        318,870         109,623         505,194         197,790
                                                                    ---------------------------     ---------------------------
      Total interest expense ...................................     11,983,802       9,041,989      23,028,169      18,363,771
                                                                    ---------------------------     ---------------------------
      Net Interest Income ......................................     14,492,937      12,584,016      28,664,484      24,317,025
    Provision for loan losses ..................................        675,000         400,000       1,625,000         600,000
                                                                    ---------------------------     ---------------------------
      Net interest income after provision for loan losses ......     13,817,937      12,184,016      27,039,484      23,717,025
                                                                    ---------------------------     ---------------------------
Non Interest Income
    Service fees and other charges .............................        420,238         326,615         791,978         629,848
    International department services ..........................        862,781         800,696       1,660,039       1,497,124
    Fee income .................................................        541,140         431,330       1,149,307         830,299
    Securities gains, net ......................................              0               0               0          75,881
                                                                    ---------------------------     ---------------------------
      Total non interest income ................................      1,824,159       1,558,641       3,601,324       3,033,152
                                                                    ---------------------------     ---------------------------
Non Interest Expense
    Salaries and employee benefits .............................      3,669,235       3,680,651       7,830,493       7,540,668
    Net occupancy ..............................................        731,924         647,640       1,385,424       1,292,579
    Equipment ..................................................        217,381         237,901         434,607         467,165
    Other expenses .............................................      1,767,960       1,689,845       3,997,698       3,563,156
                                                                    ---------------------------     ---------------------------
      Total non interest expense ...............................      6,386,500       6,256,037      13,648,222      12,863,568
                                                                    ---------------------------     ---------------------------
Income before income taxes .....................................      9,255,596       7,486,620      16,992,586      13,886,609
Provision for income taxes .....................................      3,298,976       2,523,061       5,985,384       4,713,491
-----------------------------------------------------------------------------------------------     ---------------------------
      Net  Income ..............................................    $ 5,956,620     $ 4,963,559     $11,007,202     $ 9,173,118
-----------------------------------------------------------------------------------------------     ---------------------------

Earnings per share*:
    Basic ......................................................    $      0.32     $      0.26     $      0.59     $      0.47
    Diluted ....................................................           0.32            0.26            0.58            0.47
================================================================================================    ============    ===========
Comprehensive income
Net income .....................................................    $  5,956,620    $  4,963,559    $ 11,007,202    $ 9,173,118
Other comprehensive income, net of tax:
    Unrealized depreciation on securities available
         for sale during the period ............................      (1,083,382)     (4,106,295)      (1,321,215)   (5,620,679)
Reclassification for gains included in net income ..............               0               0                0       (75,881)
------------------------------------------------------------------------------------------------    ---------------------------
    Comprehensive income .......................................    $  4,873,238    $    857,264    $  9,685,987    $ 3,476,558
================================================================================================    =============   ===========
</TABLE>

*     Adjusted for 2 for 1 stock split, effective 10/1/99.

See accompanying notes to consolidated financial statements.


                                       3
<PAGE>

                           Merchants New York Bancorp

           Consolidated Statements of Changes in Stockholders' Equity
                                   (Unaudited)

<TABLE>
<CAPTION>

For the periods ended June 30,                                                2000           1999
----------------------------------------------------------------------------------------------------
<S>                                                                     <C>             <C>
Capital stock:
                                                                        ----------------------------
     Balance at beginning and end of period .........................   $     19,978    $     19,978
                                                                        ----------------------------
Surplus:
                                                                        ----------------------------
     Balance at beginning and end of period .........................     23,879,363      23,879,363
                                                                        ----------------------------
Undivided profits:
     Balance at beginning of year ...................................     95,012,110      86,304,445
     Net income .....................................................     11,007,202       9,173,118
     Cash dividends paid ............................................     (4,703,365)     (3,872,222)
     Common stock issued from treasury stock ........................       (737,192)     (1,314,437)
                                                                        ----------------------------
     Balance at end of period .......................................    100,578,755      90,290,904
                                                                        ----------------------------
Treasury stock:
     Balance at beginning of year ...................................    (12,570,633)     (6,301,081)
     Repurchase of 468,700 and 296,000 shares of common stock
        in 2000 and 1999, respectively* .............................     (7,804,941)     (5,042,725)
     Issuance of 60,376 and 93,536 shares  of common stock
        in 2000 and 1999, respectively* .............................      1,039,650       1,795,356
                                                                        ----------------------------
     Balance at end of period .......................................    (19,335,924)     (9,548,450)
                                                                        ----------------------------
Accumulated other comprehensive income:
     Net unrealized (depreciation) appreciation on securities
     available for sale, net of tax effect
     Balance at beginning of year ...................................     (7,132,881)      9,075,500
     Changes during the period, net of tax ..........................     (1,321,215)     (5,620,679)
                                                                        ----------------------------
     Balance at end of period .......................................     (8,454,096)      3,454,821
                                                                        ----------------------------
Total stockholders' equity
     Balance at beginning of year ...................................     99,207,937     112,978,205
     Changes during the period, net .................................     (2,519,861)     (4,881,589)
----------------------------------------------------------------------------------------------------
     Total ending balance ...........................................   $ 96,688,076    $108,096,616
====================================================================================================
</TABLE>

*     Shares are adjusted for 2-1 stock split, effective October 1999

 See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

                           Merchants New York Bancorp

                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

For the periods ended June 30,                                         2000            1999
-----------------------------------------------------------------------------------------------

<S>                                                                <C>             <C>
Operating activities:
  Net income ...................................................   $ 11,007,202    $  9,173,118
                                                                   ----------------------------
  Adjustments to reconcile net income to net cash
    provided by operating activities:
    Depreciation ...............................................        538,972         551,361
    Amortization of premium, net of discounts ..................        856,757       2,823,459
    Provision for loan losses ..................................      1,625,000         600,000
    Gains on sales .............................................              0         (75,881)
    Decrease in unearned discounts .............................           (549)         (4,967)
    (Increase) decrease in other assets ........................       (120,441)      1,276,726
    Decrease in other liabilities ..............................       (212,305)     (2,759,696)
                                                                   ----------------------------
        Net cash provided by operating activities ..............     13,694,636      11,584,120
                                                                   ----------------------------
Investing activities:
    Net decrease in federal funds sold .........................     50,000,000       1,000,000
    Proceeds from redemptions of securities available for sale .     95,126,179      96,165,079
    Proceeds from sales of securities available for sale .......              0      15,015,000
    Purchase of securities available for sale ..................    (20,076,263)    (79,080,639)
    Proceeds from redemptions of held to maturity securities ...     17,772,658      29,188,828
    Purchase of held to maturity securities ....................    (60,110,421)    (25,345,490)
    Net increase in customer loans .............................    (42,809,303)    (30,328,361)
    Net increase in bank premises and equipment ................       (690,029)       (155,966)
                                                                   ----------------------------
        Net cash provided by investing activities ..............     39,212,821       6,458,451
                                                                   ----------------------------
Financing activities:
    Decrease in demand deposits, NOW, savings
        and money market accounts ..............................    (11,868,106)     (9,713,849)
    Net decrease in certificates of deposit ....................    (20,023,510)    (44,738,651)
    Increase in securities sold under repurchase agreements ....     45,000,000      25,000,000
    Decrease in FHLB term advances .............................    (35,000,000)              0
    (Decrease) increase in other short-term borrowings .........     (7,951,298)     12,443,478
    Proceeds from issuance of common stock .....................        302,457         480,918
    Purchases of treasury stock ................................     (7,804,941)     (5,042,725)
    Dividends paid .............................................     (4,703,365)     (3,872,222)
                                                                   ----------------------------
        Net cash used by financing activities ..................    (42,048,763)    (25,443,051)
                                                                   ----------------------------

Net increase (decrease) in cash and cash equivalents ...........     10,858,694      (7,400,480)
Cash and cash equivalents at beginning of the period ...........     32,940,883      38,435,946
Cash and cash equivalents at end of the period .................     43,799,577      31,035,466
===============================================================================================

Supplemental disclosure of cash flow information:
    Interest paid ............................................       22,626,638      20,625,772
    Taxes paid ...............................................        5,655,468       4,147,801
===============================================================================================
</TABLE>

See accompanying notes to consolidated financial statements.


                                       5
<PAGE>

                           Merchants New York Bancorp

Notes to Consolidated Financial Statements

1. The consolidated financial statements include the accounts of Merchants New
York Bancorp (the "Company") and its wholly owned subsidiary, The Merchants Bank
of New York (the "Bank"), and the Bank's wholly-owned subsidiaries, Merchants
New York Commercial Corporation and MBNY Holdings Corporation and its
subsidiary, Merchants Capital Corporation. All material intercompany accounts
and transactions have been eliminated in consolidation.

The consolidated financial statements as of and for the interim periods ended
June 30, 2000 and 1999 are unaudited. All adjustments, which consist of normal
accruals necessary for the fair presentation of such periods have been made.
Certain reclassifications have been made to the 1999 financial statements to
conform to the current presentation. The interim financial statements should be
read in conjunction with Bancorp's Annual Report on Form 10 - K for the year
ended December 31, 1999.

2. Accumulated Other Comprehensive Income - Statement of Financial Accounting
Standards ("SFAS") No. 130, "Reporting Comprehensive Income," establishes
standards for the reporting and display of comprehensive income and its
components in financial statements. Comprehensive income represents net income
and certain amounts reported directly in equity, such as the net unrealized
depreciation on available-for-sale securities. Accumulated Other Comprehensive
Income is shown on the Balance Sheet net of tax. Below are gross amounts and the
tax benefit applicable as of June 30, 2000 and December 31, 1999.

                                            06/30/00          12/31/99
                                            --------          --------
                                                  (In thousands)
        Unrealized depreciation ........    $(13,006)         $(12,783)
        Tax benefit ....................       4,552             5,650
                                            --------          --------
        Net of tax amount ..............    $ (8,454)         $( 7,133)
                                            ========          ========

3. In June 2000, the Financial Accounting Standards Board ("FASB"), issued SFAS
No. 138, "Accounting for Derivative Instruments and Hedging Activities" which
amended SFAS No. 133. SFAS No. 138 establishes accounting and reporting
standards for derivatives and hedging activities. It requires that all
derivatives be included as assets or liabilities in the balance sheet and that
such instruments be carried at fair market value through adjustments to either
other comprehensive income or current earnings or both, as appropriate. In June
1999, FASB issued SFAS No. 137 which deferred the effective date of SFAS No. 133
to fiscal years beginning after June 15, 2000. Management does not anticipate
that the adoption of this standard will have a material impact on the Company's
consolidated financial statements.

4. Bancorp's Board of Directors declared a 2 for 1 stock split on August 17,
1999, to shareholders of record as of September 21, 1999, with an effective date
of October 1, 1999. As a result, adjustments have been made to the capital
accounts at the effective date, while retroactive adjustments have been made to
the number of shares used for the earnings per share calculation.


                                       6
<PAGE>

Item 2, Management's Discussion and Analysis of Financial Condition and Results
of Operations

Comparison for the three months ended June 30, 2000 and June 30, 1999

Interest income on investments for the quarter ended June 30, 2000 was $15.1
million, an increase of $1.3 million when compared to $13.8 million for the same
period in 1999. The increase was the result of $500,000 from higher volume and
$840,000 from an increase in interest rates. The average balance for the
investment portfolio increased to $844.3 million, up $28.3 million, from $816.0
million for the same period in 1999.

Interest income on loans was $11.3 million, an increase of $3.5 million when
compared to $7.8 million for the same period in 1999. $2.2 million was from
higher volume and $1.3 million from higher interest rates as the prime rate
averaged 9.25% versus an average of 7.75% for the same period in 1999. The
average loan balance for the quarter increased to $465.4 million, up $95.5
million from $369.9 million in 1999, primarily due to Merchants New York
Commercial Corp., the Bank's asset-based lending subsidiary.

Non interest income increased $266,000 to $1.8 million in 2000, when compared to
$1.6 million in 1999. This was mainly the result of increases in fee income of
$209,000 and International Department fees of $62,000 from higher volume of
processing letters of credits.

Interest expense on interest bearing deposits increased $827,000 to $7.0 million
from $6.2 million for the same period in 1999. The increase was a result of
$83,000 from higher volume and $744,000 from increase in interest rates. Average
interest bearing deposits increased to $637.2 million, up $18.5 million when
compared to $618.7 million in 1999.

Interest expense on repurchase agreements for the three months ended June 30,
2000 was $3.5 million, an increase of $1.4 million, when compared to $2.1
million for the same period last year. The increase was the result of $724,000
from higher volume and $658,000 from an increase in interest rates. The average
balance for repurchase agreements increased $50.7 million to $221.2 million, up
from $170.5 million for the same period in 1999.

Interest expense on FHLB term advances increased to $1.1 million, up $524,000
from $598,000 for the same period in 1999. The increase was the result of
$382,000 from a higher volume and $142,000 from higher interest rates. The
average balance for the quarter increased to $70 million, an increase of $25
million, when compared to last year's average of $45 million.

Other short-term borrowings consist of Federal funds purchased and US Treasury
demand notes. Interest expense from other short- term borrowings was $319,000
for the three month period ended June 30, 2000, an increase of $209,000 when
compared to $110,000 for the same period last year. The increase was the result
of $134,000 from higher volume and $75,000 from higher interest rates.

Non interest expense increased to $6.4 million, up $130,000 from $6.3 million
for the same period in 1999. This was primarily the result of increases in other
operating expenses.


                                       7
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

Income tax expense for the three months ended June 30, 2000 increased $776,000
to $3.3 million versus $2.5 million for the same period in 1999. The increase
was primarily due to an increase in income before taxes of $1.8 million.

PROVISION FOR  LOAN LOSSES

An addition of $675,000 was made to the Provision for Loan Losses for the second
quarter in 2000, versus $400,000 in 1999. The Bank's level of reserve follows
industry standards, with the provision adjusted to reflect the status of our
loan portfolio risk. The level of allowance for loan losses is evaluated by
management quarterly and is based on several factors in addition to non-accrual
loans, doubtful and substandard loans including: charged-off loans, recoveries,
changes in levels and characteristics of outstanding loans, and loans classified
by management as higher than normal credit risk.

The following table sets forth certain information with respect to the loan loss
experience for the quarter ended June 30, 2000 and 1999.

                                            6/30/00         6/30/99
                                            -----------------------
                                                   (In thousands)
Balance at beginning of period ...........  $ 9,664          $8,114
Provision for loan losses ................      675             400
Charge offs ..............................      (98)             (0)
Recoveries:
         Commercial ......................       40              40
         Installment .....................        1               2
                                            -----------------------
Total ....................................  $10,282          $8,556
                                            =======================


                                       8
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

Comparison for the six months ended June 30, 2000 and June 30, 1999

Interest income on investments for the six months ended June 30, 2000 was $30.0
million, an increase of $2.7 million when compared to $27.3 million for the same
period in 1999. The increase was the result of $694,000 from higher volume and
$2 million from an increase in interest rates. The average balance for the
investment portfolio increased to $844.4 million, up $20.5 million, from $823.9
million for the same period in 1999.

Interest income on loans was $21.1 million, an increase of $6.0 million when
compared to $15.1 million for the same period in 1999. $3.9 million was from
higher volume and $2.1 million from higher interest rates as the prime rate
averaged 8.97% versus an average of 7.75% for the same period in 1999. The
average loan balance for the period increased to $445.6 million, up $86.1
million from $359.5 million in 1999, primarily due to Merchants New York
Commercial Corp., the Bank's asset-based lending subsidiary.

Non interest income increased $568,000 to $3.6 million in 2000 when compared to
$3.0 million in 1999. The increase was primarily the result of increases in fee
income and other service charges of $481,000. In addition, International
Department fees increased $163,000 from higher volume of processing letters of
credits.

Interest expense on interest bearing deposits increased $959,000 to $13.9
million from $12.9 million for the same period in 1999. The increase was a
result of $1.1 million from increase in interest rates, offset by a decrease in
volume of $173,000. Average interest bearing deposits for the period increased
slightly to $640.7 million, when compared to an average of $635.3 million in
1999.

Interest expense on repurchase agreements for the six months ended June 30, 2000
was $6.2 million, an increase of $2.1 million, when compared to $4.1 million for
the same period last year. The increase was the result of $1.1 million from
higher volume and $1.0 million from an increase in interest rates. The average
balance for repurchase agreements increased $39.8 million to $200.2 million, up
from $160.4 million for the same period in 1999.

Interest expense on FHLB term advances increased to $2.5 million, up $1.3
million from $1.2 million for the same period in 1999. The increase was the
result of $1.1 million from a higher volume and $224,000 from higher interest
rates. The average balance for the period ending June 30, 2000 increased to $80
million, an increase of $35 million, when compared to last year's average of $45
million.

Other short-term borrowings consist of Federal funds purchased and US Treasury
demand notes. Interest expense from other short-term borrowings was $505,000 for
the six month period ended June 30,


                                       9
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

2000, an increase of $307,000 when compared to $198,000 for the same period last
year. The increase was the result of $210,000 from higher volume and $97,000
from higher interest rates.

Non interest expense increased to $13.6 million, up $785,000 from $12.9 million
for the same period in 1999. This was primarily the result of increases in other
operating expenses.

Income tax expense for the six months ended June 30, 2000 increased $1.3 million
to $6.0 million versus $4.7 million for the same period in 1999. The increase
was primarily due to an increase in income before taxes of $3.1 million.

PROVISION FOR  LOAN LOSSES

$1,625,000 and $600,000 were added to the Provision for Loan Losses for the six
months ended June 30, 2000 and 1999, respectively. The larger amount for this
year, was the result of $86 million increase in average loans.

The following table sets forth certain information with respect to the loan loss
experience for the periods ending June 30, 2000 and 1999.

                                        6/30/00         6/30/99
                                        -----------------------
                                             (In thousands)
Balance at beginning of period ......   $ 9,108          $7,965
Provision for loan losses ...........     1,625             600
Charge offs .........................      (542)           (178)
Recoveries:
         Commercial .................        90             164
         Installment ................         1               5
                                        -----------------------
Total ...............................   $10,282          $8,556
                                        =======================

PAST DUE LOANS AND NON PERFORMING ASSETS

Loans are generally placed on non-accrual status when principal or interest
becomes 90 days or more delinquent. Loans past due 90 days or more which are
still accruing, are either secured or are in the process of collection. Loans
remain on non-accrual status until principal and interest payments are current
or charged off.


                                       10
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

The following table sets forth the aggregate amount of non-accrual and past due
loans which are 90 days or more past due as to principal or interest payments on
the date indicated.

<TABLE>
<CAPTION>

                                                                    6/30/00     12/31/99
                                                                    --------------------
                                                                   (Dollars in thousands)
<S>                                                                 <C>           <C>
Non - accrual loans .............................................   $  717        $428
Loans past due 90 days or more,
     and still accruing .........................................      470         496
                                                                    ------------------
     Total ......................................................   $1,187        $924
                                                                    ==================

Restructured loans included in non - accrual loans ..............   $  257        $292
Non - accrual loans as a % of reserve ...........................     6.97%       4.70%
Non - accrual loans as a % of total average loans ...............      .16         .11
Interest income that would have been earned on non- accrual loans   $   28        $ 57
</TABLE>


                                       11
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

LIQUIDITY

Liquidity  measures the Bank's ability to satisfy current and future obligations
and  commitments  as they become due.  Maintaining an adequate  liquidity  level
through proper  asset/liability  management insures that these needs will be met
at a  reasonable  cost.  Funds to meet  liquidity  needs are raised  through the
liquidation or maturity of an asset or through increased deposits or borrowing.

The Bank's  liquidity  continues to be strong,  with average cash and short-term
investments  totaling $64 million at June 30, 2000  compared with $55 million at
December 31,  1999,  accounting  for 4.6% and 4.2% of the Bank's  total  average
assets, respectively. Management considers overall liquidity at June 30, 2000 to
be adequate to meet  current  obligations,  to support  expectations  for future
changes in asset and liability levels and to carry on normal operations.

Scheduled  loan  payments  and  payments  of  principal  and  interest  from the
investment portfolio provided additional liquidity. Through principal repayments
and redemptions,  the investment  portfolio generated $113 million for the first
six months of 2000,  and a total of $214 million for the year ended December 31,
1999 for reinvestment and/or liquidity.

On the liability  side, the primary source of funds  available to meet liquidity
needs is the Bank's core deposit base. The average balance of total deposits was
$946 million for the six months  ended June 30,  2000,  compared to $913 million
for the year ended December 31, 1999. The Bank continues to retain a substantial
portion of its average deposits in the form of noninterest-bearing  funds, which
were 32.3% at June 30, 2000 and 30% at December 31, 1999, or $305.6  million and
$278 million, respectively.

CAPITAL

The primary source of capital growth is through retention of earnings. Undivided
profits  increased  to $100.6  million as of June 30,  2000 as  compared  to $95
million as of  December  31,  1999.  On May 23,  2000,  the  Company's  Board of
Directors  declared its 268th  consecutive  quarterly  dividend in the amount of
$.125 per share of common  stock  payable  to its  shareholders,  for the second
quarter of 2000.  The Company  believes  that cash  dividends  are an  important
component of shareholder value and at its current level of performance, dividend
payments will continue into the future.

The  capital  base of a bank  is a  significant  measure  of the  strength  of a
financial  institution.  The Bank has seen a steady capital growth over the past
several years, with the risk based ratios and leverage ratio, as shown below, in
excess of the required "Well Capitalized" level of 10% and 5%, respectively.

                                      Required     6/30/00     12/31/99
                                      ---------------------------------
        Tier I Capital Ratio .....      4.00%       14.40%      14.88%
        Total Capital Ratio ......      8.00        15.65       16.13
        Leverage Ratio ...........      3.00         7.37        7.54


                                       12
<PAGE>

Management's Discussion and Analysis of Financial Condition and Results of
Operations

There was an overall  decrease of $2.5 million in capital from December 31, 1999
to June 30, 2000. Of this change,  there was an increase in undivided profits of
$5.6  million,  a decrease in the change in market value of  available  for sale
securities  (net of tax effect) of $1.3 million and net increase of $6.8 million
in Treasury stock transactions.

FORWARD-LOOKING STATEMENTS

This report contains certain  forward-looking  statements  within the meaning of
the  Private  Securities  Litigation  Reform  Act of 1995,  which  are  based on
management's current expectations regarding economic, legislative and regulatory
issues that may impact the Company's  earnings in future  periods.  Factors that
could  cause  future  results  to vary from  current  management's  expectations
include, but are not limited to general economic conditions: changes in interest
rate, deposit flows, loan demand, real estate values and competition; changes in
accounting  principles,  policies  or  guidelines;  changes in  legislation  and
regulation;  and  other  economic,  competitive,  governmental,  regulatory  and
technological factors affecting the Company's operations,  pricing, products and
services.


                                       13
<PAGE>

Item 3, Quantitative and Qualitative Disclosure About Market Risk

MARKET RISK MANAGEMENT

Market risk is the risk of loss in a financial  instrument  arising from adverse
changes  in market  rates/  prices  such as  interest  rates,  foreign  currency
exchange rates,  commodity  prices and equity prices.  The Bank's primary market
risk exposure is interest rate risk, with foreign exchange, commodity and equity
price  risk  not  arising  in the  ordinary  course  of  business.  The  ongoing
monitoring and  management of this risk is an important  component of the Bank's
asset/liability process which is governed by policies,  established by its Board
of Directors,  that are reviewed and approved  annually.  The Board of Directors
delegates  responsibility  for  carrying  out  the  asset/liability   management
policies  to the  Asset/Liability  Committee  (ALCO).  In  this  capacity,  ALCO
develops  guidelines  and  strategies   impacting  the  Bank's   asset/liability
management related activity based upon estimated market risk sensitivity, policy
limit and overall market interest rate levels/trends.

The  objectives of the Bank's  interest rate risk  management  activities are to
define an acceptable  level of risk based on the Bank's business focus,  capital
and  liquidity  requirements  and to manage  interest rate risk and maintain net
interest  margins in a changing  rate  environment.  The Bank does not currently
engage in trading activities or use of off balance sheet derivative  instruments
to control interest rate risk. The Board of Directors have authorized management
to use derivatives if management deems it beneficial to the Bank.

Even with the Bank's active role in managing  interest rate risk,  the potential
for changing  interest rates is an uncertainty that could have an adverse effect
on the earnings of the Bank. When interest-bearing liabilities mature or reprice
more quickly  than  interest-earning  assets in a given  period,  a  significant
increase in market  interest rates could adversely  affect net interest  income.
Conversely, in a falling interest rate environment,  these same interest-bearing
liabilities  reprice more quickly  than earning  assets,  producing a beneficial
effect on our net interest income.

In  addition,  management  seeks  to  reduce  the  vulnerability  of the  Bank's
operating  results  to  changes  in  interest  rates and to manage  the ratio of
interest  rate  sensitive  assets  to  interest  sensitive   liabilities  within
specified  maturities  or  repricing  periods,  as set  forth  in the  following
interest rate sensitivity gap analysis.


                                       14
<PAGE>

Quantitative and Qualitative Disclosure About Market Risk

INTEREST RATE SENSITIVITY GAP ANALYSIS
As of June 30, 2000
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                      Less Than          3 to 12           1 to 5          Over
                                                      3 Months           Months             Years          5 Years            Total
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>               <C>               <C>             <C>             <C>
Interest Earning Assets
------------------------------------------------------------------------------------------------------------------------------------
Securities available for sale*                        $  27,845         $  82,715         $257,746        $206,219        $  574,525
Securities held to maturity*                              9,759            27,484          128,075          87,291           252,609
Loans                                                   453,233             4,426           16,330           5,467           479,456
Other                                                       675              --               --              --                 675

------------------------------------------------------------------------------------------------------------------------------------
Total interest earning assets                           491,512           114,625          402,151         298,977         1,307,265
====================================================================================================================================

Interest Bearing Liabilities
------------------------------------------------------------------------------------------------------------------------------------
Interest bearing deposits                               530,551            88,164           15,970             165           634,850
Securities sold under
     repurchase agreements                              140,000            80,000           10,000            --             230,000
FHLB term advances                                       20,000            50,000             --              --              70,000
Other short-term borrowings                              12,096              --               --              --              12,096

------------------------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities                      702,647           218,164           25,970             165           946,946
====================================================================================================================================
Net interest rate sensitivity gap                      (211,135)         (103,539)         376,181         298,812           360,319
Cumulative gap position                                (211,135)         (314,674)          61,507         360,319
Cumulative gap/total earning assets:
At June 30, 2000                                         (16.15)%          (24.07)%           4.71%          27.56%
At June 30, 1999                                         (15.15)%          (18.96)%          11.64%          28.82%
</TABLE>

* Adjusted for weighted average maturity dates and prepayments for
mortgage-backed securities. All securities are disclosed at book value.

In managing the Bank's asset/liability position, management attempts to minimize
interest rate risk while enhancing net interest margins. Management continues to
believe that the  increased  net interest  income  resulting  from a mismatch in
maturity of the Bank's assets and liability  portfolio  can,  during  periods of
declining or stable  interest  rates and periods in which there is a substantial
positive  difference  between long and short-term  interest rates,  provide high
enough  returns to  justify  the  increased  exposure  to sudden and  unexpected
increases in interest rates. Consequently,  the Bank's results of operations and
net  portfolio  values remain  vulnerable to increases in interest  rates and to
fluctuations in the difference between long-and short-term interest rates.

Consistent with its asset/liability  management  philosophy,  the Bank has taken
several  steps to  manage  its  interest  rate  risk.  First,  the  Bank's  loan
portfolio,  as of June 30, 2000,  totaled $479 million,  consisting of virtually
all adjustable rate loans.  Second, a majority of the Bank's securities are U.S.
Government and Agency mortgaged-backed  securities, with an ending book value of
$827 million,  and an expected  weighted average maturity of approximately  four
years or less.  Third,  the Bank has a significant  amount of deposits which are
non-interest   bearing  or  are  only  minimally   sensitive  to  interest  rate
fluctuations, including $305.6


                                       15
<PAGE>

Quantitative and Qualitative Disclosure About Market Risk

million in average  demand  deposits and $284.4 million in average money market,
NOW and savings accounts.

One  approach  used by  management  to  quantify  interest  rate risk is the net
portfolio  value  (NPV)  analysis.  In essence,  this  approach  calculates  the
difference between the present value of the liabilities and the present value of
expected cash flows from assets and off balance sheet  contracts.  The following
table sets forth,  as of June 30, 2000, an analysis of the Bank's  interest rate
risk as measured by the estimated  changes in NPV resulting  from  instantaneous
and sustained  parallel shifts in the yield curve (+200 basis points measured in
100 basis point increments).  For comparative purposes, the table also shows the
estimated percentage increase (decrease) in NPV at June 30, 1999.

NET PORTFOLIO VALUE ANALYSIS FOR INTEREST RATE RISK

<TABLE>
<CAPTION>
                                                      June 30, 2000
                                            -----------------------------------------
                                            Estimated Increase (Decrease) in NPV*           Percent Increase
Change in Interest Rates   Estimated NPV    -----------------------------------------     (Decrease) in NPV at
Basis Points                 Amount                     Amount                Percent        June 30, 1999
-------------------------------------------------------------------------------------------------------------
                                                 (Dollars in thousands)
<S>                          <C>                       <C>                    <C>               <C>
+200                         113,551                   (54,103)               (32.27%)          (30.5%)
+100                         141,352                   (26,302)               (15.69%)          (14.6%)
-----                        167,654                       ----                 ----             ----
-100                         186,291                    18,636                  11.12%           9.01%
-200                         192,192                    24,538                  14.64%           8.72%
</TABLE>

* Pre- Tax

Certain  assumptions  are  employed in  preparing  the  preceding  table.  These
assumptions relate to interest rates, loan prepayment rates, deposit decay rates
and the  market  values of  certain  assets  under  the  various  interest  rate
scenarios.  It was also  assumed  that  delinquency  rates  will not change as a
result of changes in interest  rates,  although  there can be no assurance  that
this will be the  case.  Even if the  interest  rates  change in the  designated
amounts,  there can be no assurance that the Bank's assets and liabilities would
perform as set forth above. In addition,  a change in U.S. Treasury rates in the
designated  amounts  accompanied  by a change in the slope of the Treasury yield
curve would cause  significantly  different changes to the NPV than indicated in
the chart.


                                       16
<PAGE>

Part II - Other Information

Item 4, Submission of Matters to a Vote of Security Holders

The Annual Meeting of Stockholders of Bancorp, was held on May 2, 2000, at 12:00
noon for the following purposes:

1.    To elect  twelve  directors  to serve  until the next  Annual  Meeting  of
      Stockholders and/or until their successors are elected and qualified.

                             Charles J. Baum
                             William J. Cardew
                             Eric W. Gould
                             Rudolf H. Hertz
                             James G. Lawrence
                             Robinson Markel
                             Paul Meyrowitz
                             Alan Mirken
                             Mitchell J. Nelson
                             Leonard Schlussel
                             Charles I. Silberman
                             Marcia Toledano
                             Spencer B. Witty

                      Total Votes For:          15,926,308
                      Total Votes Opposed:         178,670
                      Total Votes Withheld:      2,760,660

2.    To transact such other business as may properly come before the Meeting or
      any adjournments or postponements thereof.

      There were no other matters discussed.


                                       17
<PAGE>

Item 6, Exhibits and Reports on Form 8 - K

(a)   Exhibits:

      Exhibit 11 - Computation of Earnings Per Share
      Exhibit 27 - Financial Data Schedule

(b)   Reports on Form 8 - K.

      None.


                                   SIGNATURES

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

                                          MERCHANTS NEW YORK BANCORP, INC.

                                          Registrant

Date:    August 2, 2000                   /s/ James G. Lawrence
                                          --------------------------------------
                                          James G. Lawrence
                                          President & Chief Executive Officer


Date:    August 2, 2000                   /s/ M. Nasette Aranda
                                          --------------------------------------
                                          M. Nasette Aranda
                                          Vice President & Comptroller


                                       18