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 September 30, 1996 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) 683-4612


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
November 12, 1996 was 3,667,166.


The total number of pages in this report is 16.

                                    Page -1-
<PAGE>


                       NEW ENGLAND COMMUNITY BANCORP, INC.

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

<S>        <C>                                                                         <C>
 Part I.    FINANCIAL INFORMATION                                                       Page No.
 Item 1.    Financial Statements:

            Consolidated Balance Sheets--September 30, 1996 and 1995 (unaudited)
            and December 31, 1995                                                              4

            Consolidated Statements of Income--nine months ended September 30, 1996
            and 1995 (unaudited)                                                               5

            Consolidated Statements of Cash Flows--nine months ended September 30, 1996
            and 1995 (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                                                                 15

 Item 1.    Legal Proceedings                                                                 15
 Item 2.    Changes in Securities                                                             15
 Item 3.    Defaults Upon Senior Securities                                                   15
 Item 4.    Submission of Matters to a Vote of Security Holders                               15
 Item 5.    Other Information                                                                 15
 Item 6.    Exhibits, Financial Statement Schedules and Reports on Form 8-K                   15

            SIGNATURES                                                                        16

</TABLE>
                                    Page -2-

<PAGE>
                          Part I--FINANCIAL INFORMATION

                          Item 1. Financial Statements


                                    Page -3-

<PAGE>





<TABLE>
<CAPTION>

                       NEW ENGLAND COMMUNITY BANCORP, INC.
                           CONSOLIDATED BALANCE SHEETS

(thousands of dollars)
                                                                                September 30, September 30, December 31,
                                                                                        1996          1995         1995
                                                                                 (Unaudited)   (Unaudited)
=======================================================================================================================
<S>                                                                                 <C>          <C>          <C>      
ASSETS:
      Cash and due from banks                                                       $  22,850    $  13,417    $  14,495
      Interest-bearing demand deposits with other banks                                                              55
      Federal funds sold                                                                7,850       12,650        9,075
-----------------------------------------------------------------------------------------------------------------------
                  Cash and cash equivalents                                            30,700       26,067       23,625
      Interest-bearing time deposits with other banks                                                             3,000
      Investment securities:
            Securities held-to-maturity                                                 7,107        6,033        7,066
            Securities available-for-sale                                              91,225       41,794       75,063
            FHLBB Stock                                                                 1,753          810        1,176
      Loans Outstanding                                                               283,413      136,334      222,235
            Less: allowance for loan losses                                            (5,769)      (2,369)      (4,446)
-----------------------------------------------------------------------------------------------------------------------
                  Net loans                                                           277,644      133,965      217,789
      Mortgages held-for-sale                                                           2,573        1,558          788
      Accrued interest receivable                                                       2,898        1,415        2,538
      Premises and equipment                                                            9,419        5,879        6,960
      Other real estate owned                                                           1,838          427          728
      Other assets                                                                      7,004        1,270        2,828
-----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS                                                                        $ 432,161    $ 219,218    $ 341,561
=======================================================================================================================
LIABILITIES:
      Deposits
            Noninterest bearing                                                     $  73,494    $  42,595    $  59,945
            Interest bearing                                                          312,791      154,597      247,216
-----------------------------------------------------------------------------------------------------------------------
                  Total deposits                                                      386,285      197,192      307,161
      Short-term borrowings                                                             4,139          691          540
      Other liabilities                                                                 2,661        1,031        3,380
-----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES                                                                     393,085      198,914      311,081
-----------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY:
      Common stock, $.10 par value,  authorized  10,000,000 shares;  outstanding
      September 30, 1995, 2,080,692; December 31, 1995, 3,084,309; and,
      September 30, 1996, 3,667,166                                                       367          208          308
      Surplus                                                                          27,943       12,115       21,522
      Retained earnings                                                                10,877        8,102        8,492
      Net unrealized (loss) gain on securities available-for-sale                        (111)        (121)         158
-----------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY                                                             39,076       20,304       30,480
-----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY                                            $ 432,161    $ 219,218    $ 341,561
=======================================================================================================================
</TABLE>

        The accompanying notes are an integral part of these statements.

                                    Page -4-

<PAGE>

<TABLE>
<CAPTION>

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

(thousands of dollars; except per share data)
                                                                Nine Months Ended Three Months Ended
                                                                    September 30,      September 30,
                                                                  1996       1995      1996     1995
====================================================================================================
<S>                                                            <C>           <C>     <C>      <C>   
Interest income:
      Loans, including fees                                    $ 16,744      8,956   $6,220   $3,083
      Investment securities:
            Taxable interest                                      3,352      1,884    1,373      626
            Interest exempt from federal income taxes                85         32       33       10
            Dividends                                               287        138       71       59
      Federal funds sold                                            307        273      100       69
----------------------------------------------------------------------------------------------------
            Total interest income                                20,775     11,283    7,797    3,847

Interest expense:
      Deposits                                                    7,500      3,854    2,807    1,397
      Borrowed funds                                                 76         27       30       10
----------------------------------------------------------------------------------------------------
            Total interest expense                                7,576      3,881    2,837    1,407
Net interest income                                              13,199      7,402    4,960    2,440
Provision for possible loan losses                                1,480        400      446      120
----------------------------------------------------------------------------------------------------

Net interest income after provision for possible loan losses     11,719      7,002    4,514    2,320

Noninterest income:
      Service charges, fees and commissions                       1,242      1,032      459      345
      Investment securities losses (gains)                           (5)        26                26
      Gain on the sales of loans                                    263        135      126       87
      Other                                                         240         77       39       12
----------------------------------------------------------------------------------------------------
            Total noninterest income                              1,740      1,270      624      470

Noninterest expense:
      Salaries and employee benefits                              5,021      3,135    1,882    1,093
      Occupancy                                                     927        528      369      180
      Furniture and equipment                                       659        502      261      186
      Outside services                                              418        222      202       71
      Postage and supplies                                          409        288      174       89
      Insurance and assessments                                     108        312       36       17
      Losses, writedowns, expenses - other real estate owned        226        147       66       68
      Other                                                       1,325        944      526      297
----------------------------------------------------------------------------------------------------
            Total noninterest expense                             9,093      6,078    3,516    2,001
----------------------------------------------------------------------------------------------------
Income before taxes                                               4,366      2,194    1,622      789
Income taxes                                                      1,323        773      445      275
----------------------------------------------------------------------------------------------------
NET INCOME                                                     $  3,043    $ 1,421   $1,177   $  514
====================================================================================================
Net income per share                                           $   0.93    $  0.68   $ 0.32   $ 0.24
Weighted average shares outstanding of common stock               3,276      2,081    3,656    2,081
</TABLE>

        The accompanying notes are an integral part of these statements.

                                    Page -5-
<PAGE>

<TABLE>
<CAPTION>

                       NEW ENGLAND COMMUNITY BANCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
(thousands of dollars)
Nine Months Ended September 30,                                                      1996        1995
-----------------------------------------------------------------------------------------------------
<S>                                                                              <C>         <C>     
Operating Activities:
      Net income                                                                 $  3,043    $  1,421
      Adjustment for noncash charges (credits):
      Provision for depreciation and amortization                                     537         337
      Losses from sale or disposal and provisions to reduce the carrying value
            of other real estate owned, net                                           162         106
      Investment securities losses (gains), net                                         5         (26)
      Accretion of discounts and amortization of premiums on bonds, net                91         182
      Provision for possible loan losses                                            1,480         400
      Decrease in accrued interest income and other assets, net                       (63)       1,264
      Increase in loans held-for-sale                                              (1,785)     (1,558)
      (Decrease) Increase in accrued interest and other liabilities, net           (1,537)        486
-----------------------------------------------------------------------------------------------------
Net cash provided by operating activities                                           1,933       2,612
-----------------------------------------------------------------------------------------------------

Financing activities:
      Net decrease in noninterest-bearing accounts                                 (3,417)     (4,728)
      Net (decrease) increase in interest-bearing accounts                         (1,571)      5,048
      Increase (decrease) in short-term borrowings, net                             3,599        (109)
      Proceeds from issuance of common stock                                          170           0
      Cash equivalents acquired, net                                               14,236           0
      Cash dividends paid                                                            (561)       (208)
-----------------------------------------------------------------------------------------------------
Net cash used for financing activities                                             12,456           3
-----------------------------------------------------------------------------------------------------

Investing activities:
      Principal collections, net of originations                                    3,575      (6,188)
      Proceeds from sales of loans                                                    313       1,185
      Decrease in interest-bearing time deposits                                    3,000           0
      Purchases of securities available-for-sale                                  (44,909)    (21,171)
      Proceeds from sales of securities available-for-sale                          7,009       1,565
      Proceeds from maturities of securities available-for-sale                    24,136      14,563
      Purchases of securities held-to-maturity                                     (4,521)     (2,771)
      Proceeds from maturities of securities held-to-maturity                       4,500       8,555
      Proceeds from sales of other real estate owned                                  641         439
      Purchases of premises and equipment, net                                     (1,058)       (540)
-----------------------------------------------------------------------------------------------------
Net cash provided by (used for) investing activities                               (7,314)     (4,363)
-----------------------------------------------------------------------------------------------------
      Increase (decrease) in cash and cash equivalents                              7,075      (1,748)
      Cash and cash equivalents, beginning of period                               23,625      27,815
-----------------------------------------------------------------------------------------------------
      Cash and cash equivalents, end of period                                   $ 30,700    $ 26,067
=====================================================================================================

Schedule of noncash investing and financing activities:
      Loans charged off, net of recoveries                                       $  2,167    $    595
      Real estate acquired through foreclosure                                      1,402         400
      Income tax paid                                                               1,802         590
      Interest paid                                                                 7,723       3,861
        
</TABLE>
        The accompanying notes are an integral part of these statements.

                                    Page -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 1995 Annual Report on Form 10-K.

Note 2 - Purchase Accounting
----------------------------

On November 30, 1995,  the Company  consummated  a  reorganization  with EQBK by
issuing  1,003,617  shares of the Company's  Common Stock in exchange for all of
the  outstanding  common  shares (less 69,486 shares not exchanged by dissenting
shareholders) of EQBK. In addition,  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. Both  transactions  were  accounted for as purchases,  and
thus,  the  comparative  statements  do not include prior  operating  results of
either entity.

                                    Page -7-

<PAGE>

                          Part I--FINANCIAL INFORMATION

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


                                    Page -8-

<PAGE>


Financial condition
-------------------

Total  assets  at  September  30,  1996  were   $432,161,000,   an  increase  of
$90,600,000,  or 27%, from  $341,561,000  at December 31, 1995. This increase is
primarily  the result of the  Company's  acquisition  of  Manchester  State Bank
("MSB");   which  was  completed  on  July  11,  1996  and  added  approximately
$90,000,000  in assets to the  Company.  During the first  nine  months of 1996,
loans  outstanding  increased  $61,178,000  or 28% to  $283,413,000.  Investment
securities  increased  by  $16,780,000  and ended the  quarter at  $100,085,000.
Securities  held-to-maturity were virtually unchanged and stood at $7,107,000 at
September  30, 1996  compared to  $7,066,000  at December 31, 1995.  Conversely,
securities   available-for-sale   increased   $16,162,000  from  $75,063,000  to
$91,225,000  during the period.  Federal funds sold  decreased by $1,225,000 and
stood at $7,850,000 at September 30, 1996.  Federal  funds,  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,   increased   $79,124,000   from  December  31,  1995  and  amounted  to
$386,285,000 at September 30, 1996. Of this increase, fully 17%, or $14,000,000,
was  noninterest  bearing  transaction  accounts.  Borrowed  funds  increased by
$3,599,000 and stood at $4,139,000 at quarter-end.  Accrued interest payable and
other  liabilities  were  $2,661,000,  a decrease of $719,000 from $3,380,000 at
December 31, 1995. Total  shareholders'  equity was $39,076,000 at September 30,
1996, an increase of $8,596,000  over December 31, 1995.  The increase  included
additions  from  net  income  for the  first  nine  months  of 1996  $3,043,000,
$6,310,000 in capital  acquired (from the MSB  acquisition) and $170,000 related
to the  exercise of options  granted to certain  executives  in 1993.  Decreases
included  declared  dividends  of  $658,000  and  a  $269,000  decrease  in  net
unrealized  (loss)  gain on  securities  available-for-sale  (net of related tax
effect).

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
totaled $7,107,000 at September 30, 1996 versus $7,066,000 at December 31, 1995:

<TABLE>
<CAPTION>

                                                         September 30, 1996    December 31, 1995
-------------------------------------------------------------------------------------------------
                                                          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      $4,515   $4,514      $5,501   $5,560
 ...states of the United States and political subdivisions
      of the states                                           2,592    2,619       1,565    1,629
-------------------------------------------------------------------------------------------------
                                                             $7,107   $7,133      $7,066   $7,189
=================================================================================================
</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  September  30,  1996,  the  net  unrealized  loss on
securities  available-for-sale  was $194,000  while at December 31, 1995 the net
unrealized gain was $272,000,  representing an increase in net unrealized losses
of  $466,000.   As  shown  in  the  table  below,   investments   in  securities
available-for-sale  totaled $91,225,000 at September 30, 1996 versus $75,063,000
at December 31, 1995:

                                    Page -9-
<PAGE>

<TABLE>
<CAPTION>


                                                         September 30, 1996                 December 31, 1995
-------------------------------------------------------------------------------------------------------------------
                                                       Amortized                         Amortized                 
                                                            Cost             Fair             Cost             Fair
(in thousands)                                             Basis            Value            Basis            Value
-------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>              <C>              <C>              <C>    
Marketable equity securities                             $ 9,504          $ 9,656          $15,115          $15,201
Debt securities issued by...
 ...the U.S. Treasury and U.S. government agencies         60,812           60,496           38,734           38,806
 ...Corporations                                            8,667            8,642            9,688            9,668
Mortgage-backed securities                                12,459           12,431           11,256           11,388
-------------------------------------------------------------------------------------------------------------------
                                                         $91,442          $91,225          $74,793          $75,063
===================================================================================================================
</TABLE>


Nonperforming Assets
--------------------

The  following  table  sets  forth  information   pertaining  to  the  Company's
nonperforming  assets and the level of the  allowance  for possible  loan losses
relative to those assets.


<TABLE>
<CAPTION>

(in thousands)
                                                                      September 30, 1996      December 31,1995
--------------------------------------------------------------------------------------------------------------
<S>               <C>                                                             <C>                  <C>
Nonaccrual loans                                                                  $6,373                $4,725
Other real estate owned                                                            1,838                   728
--------------------------------------------------------------------------------------------------------------
Total nonperforming assets                                                        $8,211                $5,453
--------------------------------------------------------------------------------------------------------------

Loans past due in excess of ninety days and accruing interest                     $  453                $  273
Ratio of nonperforming assets to total loans and OREO                               2.9%                  2.5%
Ratio of nonperforming assets and loans past due in excess of
      ninety days and accruing interest to total loans and OREO                     3.0%                  2.6%
Ratio of allowance for loan losses to total loans                                   2.0%                  2.0%
Ratio of allowance for loan losses to nonperforming assets and
      loans in excess of ninety days past due and accruing interest                66.6%                 77.6%
Ratio of nonperforming assets and loans in excess of ninety days
      past due and accruing interest to total shareholders' equity                 22.2%                 18.8%

</TABLE>


As shown on the table below, total nonperforming  assets increased $2,758,000 to
$8,211,000 at September  30, 1996 from  $5,453,000 at December 31, 1995 compared
to a year-to-date  decrease of $574,000  during the nine months ended  September
30, 1995:

Nine Months ending September 30,                   1996           1995
----------------------------------------------------------------------
Beginning Balance; December 31, 1995 and 1994    $5,453         $3,548
      Changes incident to acquisition             4,360
      Internal reclassifications                  3,943          1,447
      Acquired OREO                                 537
      Sales of OREO                                (685)          (439)
      Charge-offs and writedowns                 (2,515)          (804)
      Loans returned to performing status          (606)          (433)
      Repayments                                 (2,276)          (345)
----------------------------------------------------------------------
Ending Balance                                   $8,211         $2,974
======================================================================

In large part,  nonperforming  assets increased due to the merger and acquisiton
(of EQBK and MSB,  respectively)  accounting  for  $4,360,000  and  $537,000  in
nonaccural   loans  and  OREO.   In   additon,   the   $3,943,000   in  internal
reclassifications,  $2,515,000  in  charge-offs  and  $2,276,000  in  repayments
includes  nine  and  three  months  of EQBK  and MSB  operations,  respectively.
Nonperforming loans may be returned to performing status when they have regained
compliance  with their original terms and the borrower  demonstrates  an ongoing
ability to continue performing as agreed.

The Company's allowance for possible loan losses was $5,769,000 at September 30,
1996, as compared to $4,446,000 at December 31, 1995.  Activity in the allowance
for possible loan losses for the nine months ending  September 30, 1995 and 1996
was as follows:

                                   Page -10-
<PAGE>

(in thousands)
Nine months ended September 30,                      1996            1995
-------------------------------------------------------------------------
Balance beginning of period                        $4,446          $2,565
Changes incident to acquisition, net                2,010               0
Provisions charged to operations                    1,480             400
Recoveries on loans previously charged-off            230             102
Loans charged-off                                  (2,397)           (698)
-------------------------------------------------------------------------
Balance end of period                              $5,769          $2,369
=========================================================================

Provisions  for possible loan losses  charged to  operations  for the first nine
months of 1996 were $1,480,000,  representing an increase of $1,080,000 from the
same period in 1995. EQBK's provision represents approximately three-quarters of
this increase as it is included for the first time.  The  remaining  increase in
provisions primarily relates to loan growth--anticipated to result from both the
openings  of new branch  facilities  (in the towns of Canton and West  Hartford,
Connecticut  by the  Company's  subsidiary,  New England Bank) and the Company's
acquisition  of  MSB.  During  the  nine  month  period,  charge-offs  increased
$1,699,000.  As with the change in  provisions,  this increase is largely due to
the  inclusion  of  both  EQBK's  and  MSB's  operations  for  the  first  time.
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
-------

Under currently  applicable Federal Reserve Board regulations,  the Company must
maintain a minimum risk based capital ratio of 8.0% of which 4.0% must be Tier 1
capital  and a minimum  leverage  capital  ratio of  between  4.0% and 5.0%.  In
addition,  under FDIC  regulations,  the Company's  subsidiaries must meet these
same minimum  risk-based and leverage  capital ratios.  These  requirements  are
minimum ratios and banks may be required to maintain higher ratios. In addition,
the FDIC Improvement Act (FDICIA) categorizes banks,  according to their capital
levels,  into  one  of  five  categories  ranging  from  "well  capitalized"  to
"critically  undercapitalized."  Each  category  serves  to  determine  a bank's
deposit  insurance  premium  as  well  as any  mandated  restrictive  regulatory
actions.  As of September 30, 1996,  NECB's subsidiary banks were categorized as
"well  capitalized,"  which  specifies for minimum  Leverage,  Tier 1, and Total
Capital, ratios of 5%, 6% and 10%, respectively.

Total shareholders'  equity of the Company at September 30, 1996 was $39,076,000
compared to  $30,480,000  at December 31, 1995.  The  Company's  Tier 1 leverage
capital ratio was 8.62% at September 30, 1996. The capital ratios of the Company
and each of its subsidiaries  were in compliance with all applicable  regulatory
requirements. Along with the regulatory minimums, the table below summarizes the
Company's leverage and risk-based ratios as well as those of its subsidiaries at
September 30, 1996:

                     "Well Capitialized"       EQBK         NEBT     NECB
--------------------------------------------------------------------------------
Leverage                             5%        9.21%        7.93%    8.62%
Tier 1 Risk-Based                    6%       12.99%       11.36%   12.17%
Total Risk-Based                    10%       14.26%       12.62%   13.43%


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.

                                   Page -11-

<PAGE>


RESULTS OF OPERATIONS--THREE MONTHS ENDED SEPTEMBER 30, 1996
------------------------------------------------------------

Note: On November 30, 1995 and July 11, 1996,  the Company  completed its merger
with EQBK and acquisition of MSB, respectively. Both transactions were accounted
for using the purchase  method of accounting and thus, the results of operations
for  both  entities  are  only  included   since  the  effective  date  of  each
transaction.

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  September 30, 1996, the Company  reported net income
of  $1,177,000 or $0.32 per share as compared to $514,000 or $0.24 per share for
the same period of 1995. An important factor in these results was the $2,520,000
increase in net interest income which was supplemented by the $154,000  increase
in  noninterest  revenue  and  partly  offset  by  the  $1,515,000  increase  in
noninterest expenses.

Net Interest Income
-------------------

As noted, net interest income increased by $2,520,000 and totaled $4,960,000 for
the three months ended  September 30, 1996,  compared to $2,440,000 for the same
period one year earlier.  This increase primarily resulted from the inclusion of
EQBK's  and  MSB's   operations  for  the  first   time--which   together  added
approximately  $190,000,000  in interest  earning  assets and  $150,000,000  and
interest bearing liabilities.

Noninterest Income
------------------

The $154,000 increase in noninterest revenue is largely the result of a $114,000
increase in service charges,  fees and commissions.  This 33% increase is due to
the added  maintenance and  transaction-based  fees on deposit accounts acquired
from both EQBK and MSB. In addition,  with fixed-rate mortgage rates stabilizing
in latter  part of the second  quarter,  borrowers  preference  for this type of
instrument increased  accordingly and resulted in a $39,000 increase in gains on
loans originated for sale.

Noninterest Expense
-------------------

Noninterest  expense  increased  $1,515,000 to $3,516,000 from $2,001,000 during
the same  quarter last year.  The increase was due to the  inclusion of EQBK and
MSB's operations in the Company's  financial  statements for the first time. The
modest decrease in OREO related  expenses  reflects sale prices at or near their
carrying  value  and  a  general   improvement  in  the  condition  of  acquired
properties.   As  standard,   management  moves  swiftly  to  dispose  of  these
non-earning assets as soon as practicable after they have been acquired.

RESULTS OF OPERATIONS--NINE MONTHS ENDED SEPTEMBER 30, 1996
-----------------------------------------------------------

Net income for the nine  months of 1996  amounted  to  $3,043,000,  or $0.93 per
share.  This represents an increase of $1,622,000 from $1,421,000,  or $0.68 per
share reported for the first nine months of 1995. The  year-to-date  increase is
primarily the result of the  $5,797,000  increase in net interest  income.  This
increase  was  added to by the  $470,000  increase  in  noninterest  income  and
partially offset by the $3,015,000 increase in noninterest  expenses during nine
months ended September 30, 1996.

Net Interest Income
-------------------

The  $5,797,000  increase in net interest  income  primarily  resulted  from the
inclusion of EQBK's and MSB's  operations  for the first time,  and, to a lesser
degree,  the  year-to-date  net  interest  margin (net yield on average  earning
assets),  was  approximately  10 basis  points  higher in 1996 than  1995.  On a
year-to-date  basis,  approximately 86% of the change in net interest income was
due to volume  changes while 14% resulted from changes in interest  rates earned
on earning assets or paid on interest bearing liabilities.

As shown in the following  table,  the net interest margin (on a  tax-equivalent
basis) for the nine months ended  September 30, 1996 was 5.35% compared to 5.24%
for the same  period one year ago.  The average  rate paid on  interest  bearing

                                   Page -12-
<PAGE>



liabilities through the first nine months of 1996 was 3.86% compared to 3.51% in
1995. At the same time, the average rate (year-to-date) earned on earning assets
was 8.38% at quarter  ended  September 30, 1996 from 7.97% in the same period in
1995.

AVERAGE BALANCE SHEETS, NET INTEREST INCOME AND INTEREST RATES
--------------------------------------------------------------

The table below presents the Company's  average  balance  sheets  (computed on a
daily  basis),  net interest  income,  and interest  rates for nine months ended
September 30, 1996 and September 30, 1995. The table reports  nonaccruing  loans
as part of average  loans  outstanding  and  interest  income is  presented on a
tax-equivalent  basis  which  reflects a federal tax rate of 34% for all periods
presented.
<TABLE>
<CAPTION>

Nine Months Ended                                              September 30, 1996                         September 30, 1995
----------------------------------------------------------------------------------------------------------------------------------
                                                   Average                    Average           Average                    Average
(in thousands)                                     Balance       Interest        Rate           Balance       Interest        Rate
----------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>               <C>          <C>            <C>              <C>          <C>  
ASSETS
Federal funds sold                                $  7,391         $  282       5.10%          $  6,406         $  273       5.70%
Interest-bearing time deposits                         799             42       7.03%
Investment securities:
      Held-to-maturity                               7,430            387       6.96%             9,140            469       6.86%
      Available-for-sale                            77,846          3,496       6.00%            37,854          1,650       5.83%
Mortgages held for sale                              2,239            126       7.52%               726             33       6.08%
Loans                                              238,909         16,628       9.31%           136,263          8,923       8.76%
----------------------------------------------------------------------------------------------------------------------------------
Total interest-earning assets                      334,614         20,961       8.38%           190,389         11,348       7.97%

Allowance for loan losses                           (5,201)                                      (2,382)
Cash & due from banks                               14,835                                        9,112
Other assets                                        14,646                                        9,109
----------------------------------------------------------------------------------------------------------------------------------
      Total Assets                                $358,894                                     $206,228
==================================================================================================================================

LIABILITIES
Regular savings deposits                          $ 73,619        $ 1,123       2.04%          $ 48,252         $  799       2.21%
NOW account deposits                                34,647            340       1.31%            20,618            190       1.23%
Money market deposits                                5,111             42       1.10%             4,960             44       1.19%
----------------------------------------------------------------------------------------------------------------------------------
      Total savings deposits                       113,377          1,505       1.77%            73,830          1,033       1.87%
Time deposits                                      147,794          6,016       5.44%            73,585          2,821       5.13%
Borrowed funds                                       1,455             55       5.05%               599             28       6.25%
----------------------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities                 262,626          7,576       3.86%           148,014          3,882       3.51%
Demand deposits                                     59,743                                       37,738
Other liabilities                                    3,645                                          939
----------------------------------------------------------------------------------------------------------------------------------
      Total Liabilities                            326,014                                      186,691
Equity                                              32,880                                       19,537
----------------------------------------------------------------------------------------------------------------------------------
      Total Liabilities & Equity                  $358,894                                     $206,228
==================================================================================================================================

Net interest income (tax equivalent basis)                        $13,385                                       $7,466
Less adjustment for tax-exempt income                                (186)                                         (64)
----------------------------------------------------------------------------------------------------------------------------------
Net interest income                                               $13,199                                       $7,402
==================================================================================================================================
Net interest spread                                                             4.52%                                        4.46%
Net interest margin                                                             5.35%                                        5.24%
</TABLE>


                                   Page -13-
<PAGE>





Rate Volume Analysis
--------------------

The following table, which is presented on a tax-equivalent  basis, reflects the
changes,  for the nine months ended September 30, 1996 when compared to the same
period in 1995,  in net income  arising from changes in interest  rates and from
asset and liability  volume,  including  mix. The change in interest due to both
rate and volume has been  allocated to rate and volume  changes in proportion to
the relationship of the absolute dollar amounts of the changes in each.

<TABLE>
<CAPTION>
                                                                          Change due to
                                                                            Change in:
                                      Increase                      -------------------------
(in thousands)                      (Decrease)                      Rate               Volume
---------------------------------------------------------------------------------------------
<S>                                    <C>                     <C>                    <C>    
Interest earned on:
Federal funds sold                     $    9                  $  (31)                 $   40
Interest-bearing time deposits             42                      21                      21
Investment securities:
      Held-to-maturity                   (154)                    (16)                   (138)
      Available-for-sale                1,918                     127                   1,791
Mortgages held for sale                    93                      21                      72
Loans                                   7,705                     932                   6,773
---------------------------------------------------------------------------------------------
Total interest-earning assets          $9,613                  $1,054                  $8,559

Interest paid on:
Regular savings deposits               $  324                  $  (90)                 $  414
NOW account deposits                      150                      20                     130
Money market deposits                      (2)                     (3)                      1
---------------------------------------------------------------------------------------------
      Total savings deposits              472                     (73)                    545
Time deposits                           3,195                     336                   2,859
Borrowed funds                             27                     (11)                     38
---------------------------------------------------------------------------------------------
Total interest-bearing liabilities      3,694                     252                   3,442
---------------------------------------------------------------------------------------------
Net interest income change             $5,919                  $  802                  $5,117
=============================================================================================
</TABLE>


As the above table  indicates,  for the nine months ended September 30, 1996 net
interest  income (on a fully tax  equivalent  basis)  rose  $5,919,000.  Of this
amount,  $802,000  resulted  from  changes to interest  rates  earned on earning
assets and paid on interest bearing  liabilities.  The remaining  portion of the
increase,  $5,117,000  was derived from changes in volume of average  assets and
liabilities--primarily from the inclusion of EQBK and MSB in the 1996 results.

Noninterest Income
------------------

Noninterest  income through September 1996 increased $470,000 to $1,740,000 from
$1,270,000 in the first nine months of 1995.  This increase  includes the effect
of the merger with EQBK (all of 1996) and the  acquisition of MSB (from July 11,
1996 on). Both  transactions  served to significantly  increase service charges,
fees and commissions (by $210,000) and other revenue (by $163,000). In addition,
gain on the  sale of  loans  increased  by  $139,000  and  totaled  $263,000  at
September 30, 1996.

Noninterest Expense
-------------------

Noninterest  expenses  amounted  to  $9,093,000  during the first nine months of
1996.  This  represents  a  $3,015,000  increase,  or 50%,  over the  $6,078,000
reported  during the first nine  months of 1995 and is largely the result of the
inclusion  of EQBK and MSB for the first time.  Beyond the effect of the merger,
expenses increased  moderately in salaries and benefits,  occupancy,  losses and
writedowns on OREO and other expenses while insurance and assessments decreased.
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 1995.  Finally,  losses and writedowns on OREO property increased to
$79,000 at September 30, 1996.

                                   Page -14-

<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)      At a meeting of the Board of  Directors  of New  England
                        Community   Bancorp,   Inc.  (the   "Company")  held  on
                        September 19, 1996,  the Registrar and Transfer  Company
                        was  appointed  as the  Company's  sole  stock  transfer
                        agent,  sole  registrar and sole  dividend  distribution
                        agent.  Registrar  and  Transfer  Company  replaced  the
                        Company's former transfer agent (ChaseMellon Shareholder
                        Services) at the close of business, October 11, 1996.

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  September 30,
1996:

        (i)   On July 11, 1996, NECB filed an 8-K to report that pursuant to the
terms of the Plan and Agreement of Reorganization, dated as of December 19, 1995
by and among NECB, NEBT and MSB, NECB acquired all of the outstanding  shares of
MSB Common Stock. The Reorganization  became effective on Friday,  July 12, 1996
at 12:01 a.m.

        (ii)   On July 26, 1996,  NECB filed an amended 8-K (to item (i), above)
which provided for the financial statements of business acquired.

        (iii)  On October 3, 1996, the Company filed an 8-K to report that at a
meeting of the Board of Directors of New England Community  Bancorp,  Inc., held
on September 19, 1996, the board voted to change its Sole Transfer  Agent,  Sole
Registrar and Sole Dividend  Paying Agent to the Registrar and Transfer  Company
(R & T).  R & T  replaced  the  Company's  former  transfer  agent  (ChaseMellon
Shareholder Services) at the close of business, October 11, 1996.

                                   Page -15-

<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.
                                             -----------------------------------

                                             /s/ Anson C. Hall
Date:  November 13, 1996                By:------------------------------------
                                             Anson C. Hall
                                             Vice President and Treasurer


                                   Page -16-