SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON D. C. 20549

                                    FORM 10-Q


                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

         For Quarter Ended March 31, 1997 Commission File Number 0-14550

                       NEW ENGLAND COMMUNITY BANCORP, INC.

                               DELAWARE 06-1116165

                                OLD WINDSOR MALL
                                  P.O. BOX 130
                           WINDSOR, CONNECTICUT 06095

                            Telephone: (860) 610-3600

Indicate by check mark whether  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  twelve  months,   and  (2)  has  been  subject  to  such  filing
requirements for the past 90 days. YES __X__ NO_______

The number of shares of common stock of the  registrant  outstanding as of April
30, 1997 was 3,667,166.

The total number of pages in this report is 17.


<PAGE>



                       NEW ENGLAND COMMUNITY BANCORP, INC.

                                TABLE OF CONTENTS

   Part I.  FINANCIAL INFORMATION                                      Page No.
   Item 1.  Financial Statements:

            Consolidated Balance Sheets--March 31, 
            1997 and 1996 (unaudited) and December 31, 1996                   4

            Consolidated Statements of Income--three months 
            ended March 31, 1997 and 1996 (unaudited)                         5

            Consolidated Statements of Cash Flows--three 
            months ended March 31, 1997 and 1996 (unaudited)                  6

            Notes to Consolidated Financial Statements                        7

   Item 2.  Management's Discussion and Analysis of Financial Condition and
            Results of Operations                                             8

  Part II.  OTHER INFORMATION                                                16

   Item 1.  Legal Proceedings                                                16
   Item 2.  Changes in Securities                                            16
   Item 3.  Defaults Upon Senior Securities                                  16
   Item 4.  Submission of Matters to a Vote of Security Holders              16
   Item 5.  Other Information                                                16
   Item 6.  Exhibits, Financial Statement Schedules and Reports on Form 8-K  16

            SIGNATURES                                                       17


<PAGE>











                          Part I--FINANCIAL INFORMATION

                          Item 1. Financial Statements

                                       3

<PAGE>



                       NEW ENGLAND COMMUNITY BANCORP, INC.
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
(thousands of dollars)

                                                            March 31,                     March 31,         December 31,
                                                                 1997                          1996                 1996
                                                          (Unaudited)                   (Unaudited)

<S>                                                      <C>                            <C>                     <C>
________________________________________________________________________________________________________________________
ASSETS:
      Cash and due from banks                             $ 25,058                   $ 15,738                   $ 21,629
      Federal funds sold                                     2,725                      8,300                      9,675
                                                          --------                   --------                   --------
            Cash and cash equivalents                       27,783                     24,038                     31,304
      Securities held-to-maturity                            7,357                      6,595                      7,357
      Securities available-for-sale                         86,933                     67,839                     85,958
      Federal Home Loan Bank stock                           1,753                      1,176                      1,753
      Loans outstanding                                    287,291                    219,236                    288,996
            Less: allowance for possible loan losses        (5,577)                    (4,520)                    (5,514)
                                                          --------                   --------                   -------- 
                  Net loans                                281,714                    214,716                    283,482
      Mortgages held-for-sale                                1,853                      2,046                      1,755
      Accrued interest receivable                            3,088                      2,444                      3,206
      Premises and equipment                                 9,457                      7,290                      9,369
      Other real estate owned                                1,167                        720                      2,109
      Goodwill                                               4,385                        395                      4,464
      Other assets                                           2,589                      1,746                      2,402
                                                          --------                   --------                   --------
Total Assets                                              $428,079                   $329,005                   $433,159
                                                          ========                   ========                   ========

LIABILITIES:
      Deposits:
            Noninterest bearing                           $ 72,435                  $ 52,110                   $ 78,792
            Interest bearing                               300,947                   241,737                    308,105
                                                          --------                  --------                   --------
                  Total deposits                           373,382                   293,847                    386,897
      Short-term borrowings                                  5,569                     1,151                      2,003
      Long term debt                                         6,000
      Other liabilities                                      2,281                     3,098                      3,848
                                                          --------                  --------                   --------
Total Liabilities                                          387,232                   298,096                    392,748
                                                          --------                  --------                   --------
  
SHAREHOLDERS' EQUITY:
      Common Stock, $.10 par value, authorized
      10,000,000 shares: 
      March 31, 1997 and 
      December 31, 1996, 3,667,166 outstanding;
      March 31, 1996, 3,084,309 outstanding                   367                       308                        367
      Additional paid-in capital                           27,943                    21,522                     27,943
      Retained earnings                                    12,700                     9,230                     11,802
      Net unrealized (loss) gain on securities 
      available-for-sale                                     (163)                    (151)                        299
                                                         --------                  --------                   --------
Total Shareholders' Equity                                 40,847                    30,909                     40,411
                                                        ---------                  --------                   --------
Total Liabilities & Shareholders' Equity                 $428,079                  $329,005                   $433,159
                                                         ========                  ========                    =======

        The accompanying notes are an integral part of these statements.
</TABLE>

                                       4
<PAGE>



                       NEW ENGLAND COMMUNITY BANCORP, INC.
                         CONSOLIDATED INCOME STATEMENTS
                                   (Unaudited)

(thousands of dollars; except per share data)
Quarter ended March 31,                                    1997           1996
-------------------------------------------------------------------------------
INTEREST INCOME:
      Loans, including fees                             $6,423           $5,419
      Securities:
            Taxable interest                             1,425              942
            Interest exempt from federal income taxes       36               24
            Dividends                                       83              170
      Federal funds sold and other interest                 48               86
                                                       -------           ------
            Total interest income                        8,015            6,641
INTEREST EXPENSE:
      Deposits                                           2,670            2,395
      Borrowed funds                                       100               10
                                                       -------           ------
            Total interest expense                       2,770            2,405
Net interest income                                      5,245            4,236
Provision for possible loan losses                         243              532
                                                       -------           ------
Net interest income after provision for possible 
  loan losses                                            5,002            3,704

NONINTEREST INCOME:
      Service charges, fees and commissions                532              411
      Investment securities losses, net                     (4)              (1)
      Gain on the sales of loans, net                      135               20
      Other                                                 35               10
                                                       -------           ------
            Total noninterest income                       698              440
NONINTEREST EXPENSE:
      Salaries and employee benefits                     2,061            1,558
      Occupancy                                            409              257
      Furniture and equipment                              262              187
      Outside services                                     171              117
      Postage and supplies                                 181              122
      Insurance and assessments                             34               36
      Losses, writedowns, expenses - other real estate 
       owned                                                30               47
      Amortization of goodwill                              79                7
      Other                                                568              456
                                                       -------           ------
            Total noninterest expense                    3,795            2,787
                                                       -------           ------
Income before taxes                                      1,905            1,357
Income taxes                                               713              434
                                                       -------           ------
Net income                                              $1,192           $  923
                                                       =======           ======
Net income per share                                   $  0.33           $ 0.30
Weighted average shares outstanding of common stock      3,667            3,084

        The accompanying notes are an integral part of these statements.


                                       5
<PAGE>



                       NEW ENGLAND COMMUNITY BANCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

(thousands of dollars)

<TABLE>
<CAPTION>
<S>                                                                                       <C>                            <C>    
Three Months Ended March 31,                                                                  1997                          1996
--------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES:

      Net income                                                                          $  1,192                       $   923
      Adjustment for noncash charges (credits):
      Provision for depreciation and amortization                                              256                            67
      Losses from sale or disposal and provisions to reduce the carrying value
            of other real estate owned, net                                                     47                            10
      Securities losses (gains), net                                                             4                            (1)
      Accretion of discounts and amortization of premiums on bonds, net                         13                            62
      Accretion, net of amortization, of purchase accounting adjustments                       (53)
      Amortization of goodwill                                                                  79
      Provision for possible loan losses                                                       243                           532
      Gain on sale of loans, net                                                              (135)
      (Increase) decrease in accrued interest income and other assets, net                    (127)                          421
      Decrease (increase) in loans held-for-sale                                                37                        (1,258)
      (Decrease) increase in accrued interest payable and other liabilities, net            (1,229)                         (320)
                                                                                           -------                       ------- 
                  Net cash provided by operating activities                                    327                           436
                                                                                           -------                       -------

FINANCING ACTIVITIES:

      Net decrease in noninterest-bearing accounts                                          (6,357)                       (7,835)
      Net (decrease) increase in interest-bearing accounts                                  (7,087)                       (5,479)
      Increase (decrease) in short-term borrowings                                           3,566                           611
      Increase (decrease) in long-term borrowings                                            6,000
      Cash dividends paid                                                                     (294)                         (170)
                                                                                           -------                       ------- 
                  Net cash used for financing activities                                    (4,217)                       12,456
                                                                                           -------                       -------

INVESTING ACTIVITIES:

      Loans originated, net of principal collections                                         1,260                         1,963
      Proceeds from sales of loans                                                               3                           258
      Decrease in interest-bearing time deposits                                                                           3,000
      Purchases of securities available-for-sale                                           (10,787)                       (9,586)
      Proceeds from sales of securities available-for-sale                                   4,559                         6,008
      Proceeds from maturities of securities available-for-sale                              4,443                        10,947
      Purchases of securities held-to-maturity                                                                              (527)
      Proceeds from maturities of securities held-to-maturity                                                                925
      Proceeds from sales of other real estate owned                                         1,162                           259
      Purchases of premises and equipment, net                                                (296)                         (397)
      Capitalization of expenditures on other real estate owned                                (20)
                                                                                           -------                       -------
                  Net cash provided by (used for) investing activities                         324                        12,850
                                                                                           -------                       -------
      Increase (decrease) in cash and cash equivalents                                      (3,521)                          413
                                                                                           -------                       -------
      Cash and cash equivalents, beginning of period                                        31,304                        23,625
                                                                                           -------                       -------
      Cash and cash equivalents, end of period                                             $27,783                       $24,038
                                                                                           =======                       =======

Schedule of noncash investing and financing activities:

      Loans charged off, net of recoveries                                                    $180                          $511
      Real estate acquired through foreclosure                                                 247                           267
      Loans originated to facilitate sales of other real estate owned                          653
      Income tax paid                                                                          253                           143
      Interest paid                                                                          2,877                         2,511



                                   The accompanying notes are an integral part of these statements.

</TABLE>


                                       6
<PAGE>



                       NEW ENGLAND COMMUNITY BANCORP, INC.
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The  accompanying  condensed  interim  financial  statements  are  unaudited and
include the accounts of New England  Community  Bancorp,  Inc. (the "Company" or
"NECB") and its  subsidiaries,  New England Bank and Trust Company  ("NEBT") and
The Equity  Bank  ("EQBK").  The  consolidated  financial  statements  have been
prepared in accordance with generally accepted accounting principals for interim
financial  information and with the instructions to SEC Form 10-Q and Article 10
of Regulation  S-X.  Accordingly,  they do not include all the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  These financial  statements  reflect,  in the opinion of
Management,  all adjustments,  consisting of only normal recurring  adjustments,
necessary for a fair  presentation of the Company's  financial  position and the
results of its  operations and its cash flows for the periods  presented.  These
financial statements should be read in conjunction with the financial statements
and notes thereto included in the Company's 1996 Annual Report on Form 10-K.

NOTE 2 - PURCHASE ACCOUNTING

On July 11, 1996, the Company  completed an acquisition of Manchester State Bank
("MSB") by  issuing  548,857  shares of the  Company's  common  stock and paying
$3,520,000  in cash  for  all of the  outstanding  common  shares  of  MSB.  The
transaction  was  accounted  for  as  a  purchase,  and  thus,  the  comparative
statements do not include prior operating results of the acquired entity.


                                       7
<PAGE>











                          Part I--FINANCIAL INFORMATION

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


                                       8

<PAGE>



OVERVIEW

NECB  reported net income for the quarter  ended March 31, 1997 of $1,192,000 or
$0.33 per share.  This represents a 29% increase over the $923,000 earned in the
first quarter of 1996. On an earnings per share basis,  1997  increased 10% over
the $0.30  earnings  per share for 1996.  Growth in net income and  earnings per
share during 1997 primarily reflects the additional revenue and savings achieved
in conjunction with the Company's acquisition of MSB (the "acquisition").

Returns on average  assets and  average  equity for the  quarter  were 1.14% and
11.84%, compared to 1.12% and 11.99% for the same period a year earlier.

Through  the  first  three  months  of  1997,  net  interest  income  on a fully
taxable-equivalent  basis totaled $5,245,000 compared to $4,236,000 in 1996. The
net interest margin for 1997 was 5.47% versus 5.55% in 1996. The increase in net
interest income is largely due to the acquisition  together with an improved mix
of interest-earning assets and interest-bearing liabilities.

Provisions  for possible  loan losses  amounted to $243,000 in 1997  compared to
$532,000 in 1996. The provision recorded in 1996 primarily related to the growth
experienced in conjunction  with the  acquisition of EQBK which was completed on
November 30, 1995.

Noninterest  income  increased  to $698,000 in 1997 from  $440,000 in 1996.  The
increase  is  largely  the  result of the  acquisition  coupled  with a $115,000
increase in the gain on the sale of loans originated for sale.

Noninterest  expense totaled $3,795,000 in 1997, compared to $2,787,000 in 1996.
The increase is primarily the result of the  increased  size of the Company from
both  internal  growth  and from  the  acquisition,  net of the cost  reductions
derived from the elimination of duplicate operations.

Total assets at March 31, 1997 were  $428,079,000  compared to  $433,159,000  at
December  31,  1996.  Total  loans at March 31, 1997  amounted  to  $287,291,000
compared to $288,996,000  at December 31, 1996 while total deposits  amounted to
$373,382,000 at March 31, 1997 compared to $386,897,000 at December 31, 1996.

RESULTS OF OPERATIONS--THREE MONTHS ENDED MARCH 31, 1997

The  Company's  earnings  are largely  dependent  upon net  interest  income and
noninterest  income from its banking  subsidiaries.  Net interest  income is the
difference  between  interest  earned on the loan and investment  portfolios and
interest paid on deposits and other borrowings. Noninterest revenue is primarily
derived from maintenance and transaction-based fees from commercial and personal
checking accounts and gains from the sale of loans originated for sale.

For the three months ended March 31,  1997,  the Company  reported net income of
$1,192,000 or $0.33 per share as compared to $923,000 or $0.30 per share for the
same period of 1996.  An important  factor in these  results was the  $1,374,000
increase in net interest income which was supplemented by the $258,000  increase
in  noninterest  revenue  and  partly  offset  by  the  $1,008,000  increase  in
noninterest expenses.

NET INTEREST INCOME

Net interest income,  which is the difference between interest earned on earning
assets and interest  paid on deposits  and  borrowings,  represents  the largest
component of NECB's operating income. The principal earning asset of the Company
is its loan  portfolio--which  is  comprised of loans to finance  operations  of
businesses  located  within  our market  area,  mortgage  loans to  finance  the
purchase or  improvement  of  properties  used by  businesses  and  mortgage and
personal loans to individuals.  Representing a quarter of the Company's  earning
assets,  NECB's  investment  portfolio  also  plays  an  important  part  in the
management of the Company's balance sheet.  While providing a source of revenue,
these funds are used to provide  reserves  and meet the  liquidity  needs of the
Company.  Excess  reserves  are  available  to meet the  borrowing  needs of the
communities we serve. For the following discussion, interest income is presented
on a fully  taxable-equivalent  ("FTE")  basis.  FTE  interest  income  restates
reported  interest income on tax exempt loans and securities as if such interest
were  taxed at the  statutory  Federal  income  tax rate of 34% for all  periods
presented.



                                       9

<PAGE>
(amounts in thousands)


March 31,                                             1997                 1996
-------------------------------------------------------------------------------
Interest income (financial statements)                $8,015             $6,641
Tax equivalent adjustment                                 46                 53
Interest expense                                      (2,770)            (2,405)
                                                      ------            ------- 
Net interest income (fully taxable equivalent)        $5,291             $4,289
                                                      ======             ======

For the first  three  months  of 1997,  net  interest  income on a FTE basis was
$5,291,000,  a 23% increase over the $4,289,000 reported in same period in 1996.
The   $1,002,000   increase  in  1997  was  primarily  the  result  of  the  MSB
acquisition--which  added  approximately  $77,000,000 in interest earning assets
and $67,000,000 and interest bearing liabilities.

CONSOLIDATED AVERAGE BALANCES/INTEREST EARNED OR PAID/RATES
<TABLE>
<CAPTION>

Three Months Ended                                               March 31, 1997                             March 31, 1996
----------------------------------------------------------------------------------------------------------------------------
                                              Average                    Average           Average                   Average
(amounts in thousands)                        Balance       Interest        Rate           Balance       Interest       Rate
---------------------------------------------------------------------------------------------------------------------------
ASSETS:

<S>                                           <C>               <C>         <C>            <C>              <C>          <C>  
   Federal funds sold                         $  3,819          $  48       5.10%          $  6,543         $  86        5.29%
   Interest-bearing time deposits                                                             2,407             42       1.74%
   Securities held-to-maturity                   7,357            127       7.00%             6,890            114       6.65%
   Securities available-for-sale                91,716          1,463       6.47%            71,578          1,033       5.80%
   Mortgages held for sale                       1,243             20       6.53%             1,076             19       7.10%
   Loans (A)                                   288,469          6,403       9.00%           222,122          5,400       9.78%
                                              --------          -----                      --------          -----
        Total interest-earning assets          392,604          8,061       8.33%           310,616          6,694       8.67%

   Allowance for loan losses                   (5,594)                                      (4,541)
   Cash and due from banks                      16,558                                       12,937
   Other assets                                 20,889                                       12,333
                                              --------                                     --------
Total Assets                                  $424,457                                     $331,345
                                              ========                                     ========

LIABILITIES:

   Regular savings deposits                   $ 83,518          $ 436       2.12%          $ 69,077          $ 354       2.06%
   NOW account deposits                         47,866            155       1.31%            28,051             72       1.03%
   Money market deposits                         4,254             12       1.14%             4,949             14       1.14%
                                              --------          -----                      --------          -----
        Total savings deposits                 135,638            603       1.80%           102,077            440       1.73%
   Time deposits                               163,720          2,067       5.12%           139,467          1,955       5.64%
   Borrowed funds                                7,364            100       5.51%               897             10       4.48%
                                              --------          -----                      --------          -----
        Total interest bearing liabilities     306,722          2,770       3.66%           242,441          2,405       3.99%
   Demand deposits                              74,313                                       54,653
   Other liabilities                             2,519                                        3,294
                                              --------                                     --------
        Total Liabilities                      383,554                                      300,388
   Equity                                       40,903                                       30,957
                                              --------                                     --------
Total Liabilities & Equity                    $424,457                                     $331,345
                                              ========                                     ========

Net interest income--FTE basis                                $5,291                                       $4,289
                                                              ======                                       ======
Net interest margin                                                        5.47%                                        5.55%
Net interest spread                                                        4.66%                                        4.68%

(A) Average loans include nonaccruing loans.
</TABLE>


                                       10

<PAGE>



The net interest  margin  measures the  difference  in yield on, and the mix of,
interest-earning assets and interest-bearing liabilities. Net interest margin is
affected by a number of factors  including  the volume,  pricing and maturity of
earning assets and interest-bearing  liabilities and interest rate fluctuations.
Changes in  nonperforming  assets,  together with interest lost and recovered on
those assets also affect comparisons of net interest income.

Several factors served to decrease the net interest margin to 5.47% in 1997 from
5.55% in 1996. Noteworthy was the effect of combining NECB's balances with those
of MSB. Prior to the acquisition, MSB had an interest rate structure which, when
compared to the Company's  existing  structure,  generally included higher rates
earned and paid.  Incorporating this structure into the Company's had the effect
of  increasing  the average rates of the combined  Company.  Added to this was a
general  reduction in market interest rates compared to the last year which also
served to compress the Company's margin.

RATE/VOLUME ANALYSIS

Changes in net interest income between years is divided into two components--the
change  resulting  from the change in  average  balances  of earning  assets and
interest-bearing liabilities (or "volume") and the change in the rates earned or
paid on these  balances.  The change in  interest  income and  interest  expense
attributable to changes in both volume and rate, which cannot be segregated, has
been  allocated  proportionately  to the  absolute  values of the changes due to
volume and rate. The following table is presented on a FTE basis.

<TABLE>
<CAPTION>
                                                                 Total                           Change due to
                                                              Increase                             Change in:
                                                                                            --------------------------
(amounts in thousands)                                      (Decrease)                      Rate                Volume
----------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                     <C>                      <C>    
INTEREST EARNED ON:
Federal funds sold                                              $  (38)                 $   (3)                 $  (35)
Interest-bearing time deposits                                     (42)                      0                     (42)
Securities held-to-maturity                                         13                       6                       7
Securities available-for-sale                                      430                     124                     306
Mortgages held for sale                                              1                      (2)                      3
Loans                                                            1,003                    (461)                  1,464
                                                               -------                  ------                  ------
Total interest-earning assets                                   $1,367                  $ (336)                 $1,703
                                                               -------                  ------                  ------
INTEREST PAID ON:
Regular savings deposits                                        $   82                  $    9                  $   73
NOW account deposits                                                83                      23                      60
Money market deposits                                               (2)                      0                      (2)
                                                                ------                  ------                  ------
      Total savings deposits                                       163                      33                     130
Time deposits                                                      112                    (194)                    306
Borrowed funds                                                      90                       3                      87
                                                                ------                  ------                  ------
Total interest-bearing liabilities                                 365                    (159)                    524
                                                                ------                  ------                  ------
Net interest income change                                      $1,002                  $ (177)                 $1,179
                                                                ======                  ======                  ======
</TABLE>

As the above  table  indicates,  for the three  months  ended March 31, 1997 net
interest  income (on a fully tax  equivalent  basis)  rose  $1,002,000.  Of this
amount,  $1,179,000  resulted  from  changes  in volume of  average  assets  and
liabilities--primarily  from  the  inclusion  of MSB in the  1997  results.  The
remaining  portion of the change,  a decrease  of  $177,000,  was  derived  from
changes to interest rates earned on earning assets and paid on interest  bearing
liabilities.

NONINTEREST INCOME

For the first three months of 1997,  noninterest income increased  $258,000,  or
59%, from 1996 and totaled  $698,000  compared to $440,000 in the previous year.
Service  charges,  fees and  commissions  totaled  $532,000 in 1997  compared to
$411,000  in 1996,  an increase of 29%.  Included in service  charges,  fees and
commissions  are  fees on  deposits,  loan  servicing  fees and  other  fees and
charges.  While most of the increase in this  category can be  attributed to the
acquisition,  the Company's new on-line cash management  product  ("Access") has
been very well  received by the market place and is beginning to  contribute  to
noninterest income.


                                       11

<PAGE>

Gains on sales of loans increased by $115,000 and totaled $135,000 for the first
quarter of 1997  compared  to  $20,000  for 1996.  With fixed rate  conventional
mortgage  rates  generally  below  8% for  most of the  first  quarter  of 1997,
borrowers  preference  for financing  home  purchases  with fixed rate mortgages
remained  strong.  As  part  of its  asset/liability  management  process,  NECB
generally  sells these  mortgages in the secondary  market.  This taken together
with the Company's  expanded market area enabled NECB to  dramatically  increase
its originations in the first quarter of 1997.

NONINTEREST EXPENSE

Noninterest  expenses  amounted to  $3,795,000  during the first three months of
1997.  This  represents  a  $1,008,000  increase,  or 36%,  over the  $2,787,000
reported  during the first three months of 1996 and is largely the result of the
growth  related to the  addition of MSB.  Beyond the effect of the  acquisition,
expenses  increased  moderately  in salaries and  benefits,  occupancy and other
expenses  while  insurance  and  assessments  and losses and  writedowns on OREO
decreased  modestly from same period in 1996.  Salaries and benefit expense rose
in response to both merit  increases and  Company-paid  insurance  expense.  The
increase in occupancy expense resulted from the additional lease expense for new
facilities  and  the  associated  amortization  of  leasehold  improvements  and
increased  depreciation  expense on the Company's new  Technology  Center--which
began operations in March 1996.  Expenses related to furniture and equipment and
outside  services  also rose  during  the  period,  when  compared  to 1996.  In
addition, goodwill amortization resulting from the use of the purchase method of
accounting  for the EQBK  and MSB  acquisitions,  amounted  to  $79,000  in 1997
compared to $7,000 in 1996.

FINANCIAL CONDITION

Total assets at March 31, 1997 were $428,079,000,  a decrease of $5,080,000,  or
2%, from  $433,159,000  at December 31,  1996.  During the first three months of
1997, loans outstanding decreased $1,705,000 or 1% to $287,291,000. The decrease
in   loans   was    partially    offset   by   an   increase    in    securities
available-for-sale--which  increased $975,000 to $86,933,000 at quarter end from
$85,958,000 at December 31, 1996. Securities held-to-maturity were unchanged and
stood at  $7,357,000  at  March  31,  1997.  Federal  funds  sold  decreased  by
$6,950,000  and stood at $2,725,000  at March 31, 1997  compared to  $9,675,000.
Federal  funds--which  are  overnight  loans  to other  banks--represent  excess
reserves which are the Company's most liquid assets and as such are available to
meet short term cash flow needs of the Company.

Total deposits,  which constitute the principal  funding source of the Company's
assets,   decreased   $13,515,000   from  December  31,  1996  and  amounted  to
$373,382,000 at March 31, 1997. The Company  normally  experiences some seasonal
outflow of  deposits--particularly  in  transaction  accounts--during  the first
quarter of the year.

Short-term  borrowings  increased  by  $3,566,000  and  stood at  $5,569,000  at
quarter-end.  In addition, during the quarter the Company borrowed $6,000,000 in
long term debt with  maturities  ranging from 2 to 6 years from the Federal Home
Loan Bank of Boston. Other liabilities were $2,281,000, a decrease of $1,567,000
from  $3,848,000 at December 31, 1996 and is primarily the result of the payment
made  to  dissenting  shareholders  of  EQBK.  Total  shareholders'  equity  was
$40,847,000  at March 31, 1997,  an increase of $436,000 over December 31, 1996.
The change  included net income for the first three months of 1997 of $1,192,000
and decreases from declared dividends of $294,000 and a $462,000 decrease in net
unrealized loss on securities available-for-sale (net of related tax effect).


                                       12

<PAGE>



SECURITIES HELD-TO-MATURITY

Securities  held-to-maturity  are shown in the  Company's  balance  sheets on an
amortized  cost basis.  Amortized  cost is the  original  cost  adjusted for the
effect of accumulated  amortization  of premiums and accretion of discounts.  As
summarized in the table below,  investments in securities  held-to-maturity were
unchanged from December 31, 1996 and totaled $7,357,000 at March 31, 1997:
<TABLE>
<CAPTION>

                                                          March 31, 1997                                 December 31, 1996
------------------------------------------------------------------------------------------------------------------------------
                                                 Amortized                                          Amortized
                                                      Cost                 Fair                          Cost                 Fair
(in thousands)                                       Basis                Value                         Basis                Value
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                  <C>                           <C>                  <C>
Debt securities issued by the U.S. Treasury
   and other U.S. government agencies               $4,516               $4,502                        $4,516               $4,563
Debt securities issued by states and
    political subdivisions of the states             2,841                2,852                         2,841                2,892
                                                    ------               ------                        ------               ------
                                                    $7,357               $7,354                        $7,357               $7,455
                                                    ======               ======                        ======               ======
</TABLE>


SECURITIES AVAILABLE-FOR-SALE

Securities  available-for-sale are shown in the Company's balance sheets at fair
value. The unrealized gain or loss resulting from such valuation, reduced by the
effect of income  taxes,  is reflected as a  separately  disclosed  component of
shareholders'  equity.  At March 31, 1997, the net unrealized loss on securities
available-for-sale  was $275,000  while at December 31, 1996 the net  unrealized
gain  was  $521,000,  representing  an  increase  in net  unrealized  losses  of
$796,000.   As  shown   in  the   table   below,   investments   in   securities
available-for-sale  totaled  $86,933,000 at March 31, 1997 versus $85,958,000 at
December 31, 1996:

<TABLE>
<CAPTION>
                                                      March 31, 1997                                     December 31, 1996
-------------------------------------------------------------------------------------------------------------------------------
                                             Amortized                                          Amortized
                                                  Cost                 Fair                          Cost                 Fair
(in thousands)                                   Basis                Value                         Basis                Value
-------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                  <C>                           <C>                 <C>
Marketable equity securities                    $ 4,473              $ 4,877                       $ 3,689              $ 4,002
Debt securities issued by the U.S. Treasury
   and other U.S. government agencies            63,778               63,233                        63,315               63,459
Corporation debt securities                       7,082                7,026                         8,122                8,117
Mortgage-backed securities                       11,875               11,797                        10,311               10,380
                                                -------              -------                       -------              -------
                                                $87,208              $86,933                       $85,437              $85,958
                                                =======              =======                       =======              =======
</TABLE>


NONPERFORMING ASSETS

Nonperforming  assets  are  assets on which  income  recognition  in the form of
principal and/or interest has either ceased or is limited,  thereby reducing the
Company's earnings. Nonperforming assets include nonaccrual loans and other real
estate owned  ("OREO").  Generally,  loans are placed in nonaccrual  status when
they are past due  greater  than  ninety  days or the  repayment  of interest or
principal is considered to be in doubt. In addition to nonperforming assets, the
asset  quality of the Company  can be  measured by the amount of the  provision,
charge-offs  and several  credit  quality  ratios  presented  in the  discussion
concerning Provision and Allowance for Loan Losses.


                                       13

<PAGE>



As shown on the table below,  total  nonperforming  assets decreased $961,000 to
$6,907,000 at March 31, 1997 from $7,868,000 at December 31, 1996.

<TABLE>
(in thousands)
<CAPTION>

                                                                                         March 31, 1997          December 31,1996
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                              <C>                      <C>
Nonaccrual loans                                                                                 $5,740                    $5,759
Other real estate owned                                                                           1,167                     2,109
                                                                                                 ------                    ------
Total nonperforming assets                                                                       $6,907                    $7,868
                                                                                                 ======                    ======

Loans past due in excess of ninety days and accruing interest                                    $   10                    $  395
Ratio of nonperforming assets to total loans and OREO                                              2.4%                      2.7%
Ratio of nonperforming assets and loans past due in excess of
      ninety days and accruing interest to total loans and OREO                                    2.4%                      2.8%
Ratio of allowance for loan losses to total loans                                                  1.9%                      1.9%
Ratio of allowance for loan losses to nonperforming assets and
      loans in excess of ninety days past due and accruing interest                               80.6%                     66.7%
Ratio of nonperforming assets and loans in excess of ninety days
      past due and accruing interest to total shareholders' equity                                17.0%                     20.4%
Ratio of nonperforming assets to total assets                                                      1.6%                      1.8%
</TABLE>

OREO consists of properties  acquired  through  foreclosure  proceedings.  These
properties  are recorded at the lower of the carrying value of the related loans
or the estimated fair market value less estimated selling costs.  Charges to the
allowance for loan losses are made to reduce the carrying amount of loans to the
fair  market  value of the  properties  less  estimated  selling  expenses  upon
reclassification as OREO. Subsequent reductions are charged to operating income.

Activity in Nonperforming Assets
(Amounts in thousands)

Three Months Ending March 31,                           1997               1996
-------------------------------------------------------------------------------
Beginning Balance; December 31, 1996 and 1995          $7,868           $5,453
     Additions                                            906            1,181
     Reductions:
        Payments                                         (431)            (308)
        Loans returned to performing status                 0             (416)
        Charge-offs and writedowns                       (328)            (527)
        Sales/other, net                               (1,108)            (219)
                                                       ------         -------- 
Ending Balance                                         $6,907           $5,164
                                                       ======           ======

Compared to first quarter of 1996,  nonperforming assets primarily increased due
to the  acquisition  which  accounted for  $4,360,000 and $585,000 in nonaccural
loans  and  OREO,  respectively.  In  addition,  reduced  reclassifications  and
increased sales of OREO served to reduce  nonperforming  assets during the first
quarter of 1997.

PROVISION AND ALLOWANCE FOR LOAN LOSSES

NECB's allowance for loan losses represents  amounts available for future credit
losses.  Management  continually  assesses the adequacy of their  allowances for
loan losses in response to current and anticipated economic conditions, specific
problem loans,  historical net charge-offs and the overall risk profile of their
loan portfolios.  Management allocates specific allowances to individual problem
loans  based upon its  analysis of the  potential  for loss  perceived  to exist
related to such loans.  In addition to the specific  allowances  for  individual
loans,  a portion of the  allowance is maintained  as a general  allowance.  The
amount of the general allowance is determined through  Management's  analysis of
the  potential for loss inherent in those loans not  considered  problem  loans.
Among the factors  considered  by Management in this analysis are the number and
type of loans,  nature and amount of collateral pledged to secure such loans and
current  economic  conditions.  Based upon these analyses,  the Company believes
that its allowance for loan losses at year-end is adequate.



                                       14

<PAGE>
The following  table  summarizes the activity in the allowance for possible loan
losses for the three months ending March 31, 1997 and 1996 was as follows:

                                                                            
(in thousands)
Three Months Ended March 31,                     1997                      1996
-------------------------------------------------------------------------------
Balance beginning of period                    $5,514                    $4,446
Provisions charged to operations                  243                       532
Recoveries on loans previously charged-off         67                        53
Loans charged-off                                (247)                     (511)
                                               ------                    ------ 
Balance end of period                          $5,577                    $4,520
                                               ======                    ======

Provisions  for possible loan losses  charged to operations  for the first three
months of 1997 were $247,000, representing an decrease of $289,000 from the same
period  in 1996.  During  the  three  month  period,  charge-offs  decreased  by
$264,000. Management's assessment of the adequacy of the allowance is based upon
the composition of the loan portfolio,  past due  experience,  current  economic
conditions  and  other  factors  deemed  appropriate.  Management  analyzes  the
subsidiaries'  loan  portfolios  as  part  of its  risk  management  process  to
ascertain the potential for loss from possible  nonpayment by some of the Banks'
borrowers as well as the risk of loss  inherent in the  portfolio.  Reserves are
assigned  to  specific  loans and  classes  of  loans,  and then  aggregated  to
determine the total level needed.

CAPITAL

The Company  endeavors  to maintain an optimal  amount of capital  upon which an
attractive  return to shareholders  will be realized over the short and long run
while meeting all regulatory requirements for minimum levels of capital.

As of March 31, 1997, the Company exceeded all regulatory capital ratios and the
subsidiaries were categorized as "well  capitalized." The various capital ratios
of the Company for March 31, 1997 and 1996 were:

                               MINIMUM LEVEL          1997                 1996
                              -------------           ----                 ----
Total Risk-Based..........          8%              13.69%               13.43%

Tier 1 Risk-Based.........          4%              12.44%               12.18%

Leverage..................          4%               8.71%                9.37%


LIQUIDITY

It is management's objective to ensure the continuous ability to meet cash needs
as they  arise.  Such needs may occur from time to time as a result of  seasonal
declines  in deposit  levels,  response  to changes  in  interest  rates paid on
deposits and interest rates charged for loans and fluctuations in the demand for
the Banks' various loan products.  Accordingly,  the Company maintains liquidity
that provides the flexibility to meet its cash needs. The liquidity objective is
achieved  through  the  maintenance  of readily  marketable  assets as well as a
balanced  flow of asset  maturities  and  prudent  pricing  on loan and  deposit
agreements.  The  Company  has  alternative  sources  of  liquidity,   including
repurchase  agreements  and  lines  of  credits  provided  by the  FHLBB to both
subsidiaries,  which together  provide the Company with  flexibility in managing
its liquidity position.  The maturities of investment  securities and cash flows
from the  repayments  of  outstanding  loans are expected to provide the Company
with adequate liquidity over the coming months.


                                       15

<PAGE>



Part II: Other Information

Item 1.        Legal Proceedings - None

Item 2.        Changes in Securities - None

Item 3.        Default Upon Senior Securities - None

Item 4.        Submission of Matters to a Vote of Security Holders - None

Item 5         Other Information

               A)       In an agreement dated February 25, 1997, the Company and
                        First Bank of West  Hartford  ("First  Bank")  agreed to
                        consummate a business  combination  transaction in which
                        First Bank will merge with and into  NECB's New  England
                        Bank  subsidiary.   The  agreement  is  subject  to  the
                        approval of regulators and the  shareholders of both the
                        Company and First Bank and is expected to close in third
                        quarter of 1997.

Item 6.        Exhibits, Financial Statement Schedules and Reports on Form 8-K

            (a)         Exhibits

                        Exhibit Number               Exhibit
                        27                           Financial Data Schedule

            (b)         Form 8-K; Current Reports.  The following  reports were
                        filed   with  the  Securities  and  Exchange Commission 
                        during the quarter ended March 31, 1997:

                        (i)         On January 22, 1997, the Board of Directors
of  NECB  accepted  the  retirement   of   John   A.  Coccomo,   Sr.  effective 
January 16, 1997, as a Director and Corporate Secretary of the  Company and sub-
sidiary NEBT.

                        (ii)        On February 24, 1997,  NECB  announced that
its  Annual  Meeting  of Shareholders  will be held on Tuesday May 20, 1997  at
10:00 a.m. at La Renaissance, 53  Prospect  Hill  Road (Route 5), East Windsor,
Connecticut. NECB's Board of Directors fixed the close of business on March 31,
1997 as the record date for determination of shareholders entitled to notice of 
and to vote at the Annual Meeting.

                         (iii) On February 25, 1997, NECB and First Bank of West
Hartford ("First Bank") issued a joint press release announc- ing the signing of
a definitive  agreement  (the  "Agreement")  between NECB and First Bank whereby
First Bank will be acquired by NECB ("the Acquisi- tion"). NECB anticipates that
First Bank will be merged with and into its  Connecticut  bank  subsidiary,  New
England  Bank & Trust  Company.  Under  the term of the  Agreement,  First  Bank
shareholders willreceive 0.62 of a share of common stock of NECB in exchange for
each share of First Bank common stock.  The  Acquisition is subject to customary
conditions,  including but not limited to the approval by federal and state bank
regulatory  authorities and the shareholders of First Bank and NECB. First Bank,
operates out of a single office  located in West  Hartford,  Connecticut  and at
December  31,  1996--had  assets of approx-  imately  $84  million,  deposits of
approxima-   tely  $70  million,   loans  of   approximately   $47  million  and
shareholders'  equity of approxima- tely $9 million.  The management of NECB and
First Bank anticipate  that the Acquisition  will close during the third quarter
of 1997 and will be accounted for as a pooling of interests.


                                       16

<PAGE>



                       NEW ENGLAND COMMUNITY BANCORP, INC.

                                   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.

                                             NEW ENGLAND COMMUNITY BANCORP, INC.
Date:  May 14, 1997                      By: S/S ANSON C. HALL
                                             -----------------
                                             Anson C. Hall
                                             Vice President and Treasurer


                                       17