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, 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 October
31, 1997 was 4,662,521.

The total number of pages in this report is 19.

                                       1

<PAGE>



                       NEW ENGLAND COMMUNITY BANCORP, INC.

                                TABLE OF CONTENTS

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

          Consolidated Balance Sheets--September 30, 1997 (unaudited)
          and December 31, 1996                                                4

          Consolidated Statements of Income--three and nine months ended
          September 30, 1997 and 1996 (unaudited)                              5

          Consolidated Statements of Cash Flows--nine months ended
          September 30, 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                                            9

Part II.  OTHER INFORMATION                                                   18

Item 1.   Legal Proceedings                                                   18
Item 2.   Changes in Securities                                               18
Item 3.   Defaults Upon Senior Securities                                     18
Item 4.   Submission of Matters to a Vote of Security Holders                 18
Item 5.   Other Information                                                   18
Item 6.   Exhibits, Financial Statement Schedules and Reports on Form 8-K     18

          SIGNATURES                                                          19

                                       2

<PAGE>


                          Part I--FINANCIAL INFORMATION

                          Item 1. Financial Statements

                                       3

<PAGE>


                       NEW ENGLAND COMMUNITY BANCORP, INC.
                           CONSOLIDATED BALANCE SHEETS

(thousands of dollars)
                                                      September 30, December 31,
                                                              1997          1996
                                                        (Unaudited)
--------------------------------------------------------------------------------
ASSETS:
      Cash and due from banks                            $  30,209    $  24,729
      Federal funds sold                                     3,500       15,125
                                                         ---------    ---------
            Cash and cash equivalents                       33,709       39,854
      Securities held-to-maturity                           12,043       13,333
      Securities available-for-sale                        103,278      105,137
      Federal Home Loan Bank stock                           2,615        2,440
      Loans outstanding                                    349,344      336,204
            Less: allowance for possible loan losses        (7,246)      (6,660)
                                                         ---------    ---------
                  Net loans                                342,098      329,544
      Mortgages held-for-sale                                1,990        1,931
      Accrued interest receivable                            3,632        3,913
      Premises and equipment                                 9,819        9,965
      Other real estate owned                                1,005        2,316
      Goodwill                                               4,228        4,464
      Other assets                                           3,758        3,857
                                                         ---------    ---------
Total Assets                                             $ 518,175    $ 516,754
                                                         =========    =========

LIABILITIES:
      Deposits:
            Noninterest bearing                          $  92,883    $  89,767
            Interest bearing                               349,519      367,237
                                                         ---------    ---------
                  Total deposits                           442,402      457,004
      Short-term borrowings                                  9,783        2,278
      Long-term debt                                        11,893        3,951
      Other liabilities                                      2,166        4,301
                                                         ---------    ---------
Total Liabilities                                          466,244      467,534

SHAREHOLDERS' EQUITY:
      Common Stock, $.10 par value,
           authorized 10,000,000 shares:
      September 30, 1997, 4,662,521 outstanding;
           December 31, 1996, 4,622,586 outstanding            466          462
      Additional paid-in capital                            38,458       38,546
      Retained earnings                                     12,620       10,003
      Net unrealized gain (loss) on securities
           available-for-sale                                  387          209
                                                         ---------    ---------
Total Shareholders' Equity                                  51,931       49,220
                                                         ---------    ---------
Total Liabilities & Shareholders' Equity                 $ 518,175    $ 516,754
                                                         =========    =========

        The accompanying notes are an integral part of these statements.

                                       4

<PAGE>


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

<TABLE>
<CAPTION>

(thousands of dollars; except per share data)
                                                                  Nine Months Ended     Three Months Ended
                                                                    September 30,          September 30,
                                                                   1997       1996        1997       1996
---------------------------------------------------------------------------------------------------------
<S>                                                            <C>        <C>         <C>        <C>     
INTEREST INCOME:
      Loans, including fees                                    $ 23,086   $ 20,058    $  7,840   $  7,386
      Securities:
            Taxable interest                                      5,429      4,559       1,768      1,790
            Interest exempt from federal income taxes                96         85          38         33
            Dividends                                               244        285          93         69
      Federal funds sold and other interest                         325        403          88        125
                                                               --------   --------    --------   --------
            Total interest income                                29,180     25,390       9,827      9,403

INTEREST EXPENSE:
      Deposits                                                    9,385      8,966       3,164      3,273
      Borrowed funds                                                629        175         261         88
                                                               --------   --------    --------   --------
            Total interest expense                               10,014      9,141       3,425      3,361
Net interest income                                              19,166     16,249       6,402      6,042
Provision for possible loan losses                                1,033      1,615         475        476
                                                               --------   --------    --------   --------

Net interest income after provision for possible loan losses     18,133     14,634       5,927      5,566

NONINTEREST INCOME:
      Service charges, fees and commissions                       1,905      1,468         636        519
      Investment securities gains, net                              168        (29)          7        (24)
      Gain on the sales of loans, net                               590        794         175        300
      Other                                                         106        301          35         81
                                                               --------   --------    --------   --------
            Total noninterest income                              2,769      2,534         853        876

NONINTEREST EXPENSE:
      Salaries and employee benefits                              7,210      6,076       2,404      2,238
      Occupancy                                                   1,579      1,340         501        497
      Furniture and equipment                                     1,112        796         469        312
      Outside services                                              758        799          52        326
      Postage and supplies                                          552        483         161        194
      Insurance and assessments                                     139        142          45         46
      Losses, writedowns, expenses - other real estate owned        336        441         175         78
      Amortization of goodwill                                      236         85          79         71
      Other                                                       3,189      1,476       1,919        533
                                                               --------   --------    --------   --------
            Total noninterest expense                            15,111     11,638       5,805      4,295
                                                               --------   --------    --------   --------
Income before taxes                                               5,791      5,530         975      2,147
Income taxes                                                      2,366      1,566         552        602
                                                               --------   --------    --------   --------
Net Income                                                     $  3,425   $  3,964    $    423   $  1,545
                                                               ========   ========    ========   ========
Net income per share                                           $   0.74   $   0.98    $   0.09   $   0.35
Weighted average shares of Common Stock outstanding               4,632      4,042       4,649      4,429
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       5

<PAGE>

                       NEW ENGLAND COMMUNITY BANCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
(thousands of dollars)
Nine Months Ended September 30,                                                          1997                          1996
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>                            <C>
OPERATING ACTIVITIES:
      Net income  $                                                                  $  3,425                       $ 3,694
      Adjustment for noncash charges (credits):
         Provision for depreciation and amortization                                      781                           701
         Losses from sale or disposal and provisions to reduce
              the carrying value of other real estate owned, net                          160                           359
         Securities losses (gains), net                                                  (168)                           29
         Accretion of discounts and amortization of premiums on bonds, net                 14                            59
         Accretion, net of amortization, of purchase accounting adjustments              (160)
         Amortization of goodwill                                                         236                            85
         Provision for possible loan losses                                             1,033                         1,615
         Gain on sale of loans, net                                                      (590)
         (Increase) decrease in accrued interest income and other assets, net             745                           (91)
         Decrease (increase) in loans held-for-sale                                       531                        (1,825)
            (Decrease) increase in accrued interest payable and
              other liabilities, net                                                   (2,348)                       (1,428)
                                                                                     --------                      -------- 
                  Net cash provided by operating activities                             3,659                         3,468
                                                                                     --------                      --------

FINANCING ACTIVITIES:
      Net decrease in noninterest-bearing accounts                                      3,116                        (3,418)
      Net (decrease) increase in interest-bearing accounts                            (17,504)                       (7,914)
      Increase (decrease) in short-term borrowings                                      7,505                         3,599
      Increase (decrease) in long-term borrowings                                       7,942                         4,343
      Proceeds from issuance of common stock                                               26                         1,210
      Cash equivalents acquired, net                                                                                 14,236
      Cash dividends paid                                                              (1,045)                         (709)
                                                                                     --------                      -------- 
                  Net cash used for financing activities                                   40                        11,347
                                                                                     --------                      --------

INVESTING ACTIVITIES:
      Loans originated, net of principal collections                                  (14,834)                         (390)
      Proceeds from sales of loans                                                         38                           313
      Decrease in interest-bearing time deposits                                                                      3,000
      Purchases of securities available-for-sale                                      (34,058)                      (54,111)
      Proceeds from sales of securities available-for-sale                             20,220                        16,471
      Proceeds from maturities of securities available-for-sale                        16,148                        24,136
      Purchases of securities held-to-maturity                                            (25)                       (5,913)
      Proceeds from maturities of securities held-to-maturity                           1,000                         5,752
      Proceeds from sales of other real estate owned                                    2,412                         1,501
      Purchases of premises and equipment, net                                           (648)                       (1,108)
      Capitalization of expenditures on other real estate owned                           (97)
                                                                                     -------- 
                  Net cash provided by (used for) investing activities                 (9,844)                      (10,349)
                                                                                     --------                      -------- 
      Increase (decrease) in cash and cash equivalents                                 (6,145)                        4,466
                                                                                     --------                      --------
      Cash and cash equivalents, beginning of period                                   39,854                        30,764
                                                                                     --------                      --------
      Cash and cash equivalents, end of period                                       $ 33,709                      $ 35,230
                                                                                     ========                      ========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       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 - Mergers and Acquisitions
---------------------------------

On July 11, 1996, NECB 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. MSB was merged with and
into NECB's  Connecticut  banking  subsidiary  New England Bank & Trust  Company
("NEBT").  The  transaction  was  accounted  for as a  purchase,  and thus,  the
comparative  statements do not include prior  operating  results of the acquired
entity.

On August 8, 1997, NECB acquired First Bank of West Hartford ("FBWH") by issuing
995,355 shares of the Company's  common stock for all of the outstanding  common
shares of FBWH and all fully vested and exercisable stock options. FBWH was also
merged  with and into  NEBT.  The  acquisition  of FBWH was  accounted  for as a
pooling of interests  and as such all prior results have been restated as though
the companies had been combined as of the earliest period presented.

Note 3- Merger Agreement
------------------------

On September 17, 1997,  Community  Savings Bank ("CSB")  entered into a Plan and
Agreement  of  Reorganization  (the  "Agreement")  with  NECB.  Pursuant  to the
Agreement,  at the  Effective  Time (as defined in the  Agreement),  CSB will be
acquired by NECB and become NECB's third banking subsidiary.

Under the terms of the Agreement, CSB shareholders will receive $5.30 in cash in
exchange  for each  share of CSB 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 CSB. CSB operates two
locations in Bristol,  Connecticut  and serves the surrounding  communities.  At
June 30,  1997,  CSB had  assets  of  approximately  $71  million,  deposits  of
approximately $66 million, loans of approximately $55 million, and shareholders'
equity of approximately $4 million.

The  Agreement is subject to a number of conditions  including,  but not limited
to, approval by CSB shareholders and approval of regulatory  agencies  including
the State of Connecticut  Banking  Commissioner  and is expected to close in the
fourth  quarter  of 1997.  NECB  expects  to account  for the  transaction  as a
purchase.

                                       7
<PAGE>
<TABLE>
<CAPTION>
Note 4- Disclosure for Statements of Cash Flows
-----------------------------------------------
<S>                                                                            <C>                            <C>
Schedule of noncash investing and financing activities:
      Loans charged off, net of recoveries                                     $   447                        $2,574
      Real estate acquired through foreclosure                                   1,164                         1,802
      Loans originated to facilitate sales of other real estate owned              834
      Income tax paid                                                            1,239                         1,815
      Interest paid                                                             10,225                         9,300
</TABLE>

                                       8
<PAGE>

                          Part I--FINANCIAL INFORMATION

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


                                       9
<PAGE>


OVERVIEW
--------

The  Company's  earnings  are largely  dependent  upon net  interest  income and
noninterest  income from its  community  banking  operations--with  net interest
income providing the majority of the Company's revenues.  Net interest income is
the difference between interest earned on the loan and investment portfolios and
interest  paid on deposits and other  sources of funds.  Noninterest  revenue is
primarily derived from service charges,  fees and commissions related to deposit
accounts and the Company's service loan portfolio. As noted in Note 2 above, the
acquisition  of FBWH was accounted for as a pooling of interests.  As such,  all
prior results have been restated as though the companies had been combined as of
the earliest period presented.

During the third quarter of 1997,  NECB reported net income of $423,000 or $0.09
per share  compared to net income of  $1,545,000 or $0.35 per share for the same
quarter last year. The results included  onetime charges,  net of related taxes,
amounting to  $1,192,000  (or $0.26 per share) which  reflected  the cost of the
acquisition  of  FBWH  and  related  restructuring  expenses.   Excluding  these
nonrecurrring  charges,  net income  amounted to  $1,615,000 or $0.35 per share,
which on a per share basis, is unchanged from the same period a year earlier.

For the three months ended  September 30, 1997,  net interest  income on a fully
taxable-equivalent  basis totaled $6,402,000 compared to $6,042,000 in 1996. The
$360,000  increase  in net  interest  income is  largely  due to growth in loans
outstanding.  Provisions for possible loan losses were  virtually  unchanged and
amounted to $475,000 and $476,000 in 1997 and 1996, respectively.

Noninterest  income  decreased  to $853,000 in 1997 from  $876,000 in 1996.  The
majority of this decrease is due to a $125,000  decrease in gains on the sale of
loans--primarily loans originated under the SBA program.  Largely due to capital
constraints,  the former FBWH's  practice was to sell the guaranteed  portion of
these loans. Conversely,  NECB's strong capital position has provided management
with the opportunity to place these relatively high yielding loans in NECB's own
portfolio.  The short-term effect of retaining these loans is reduced gains from
the sale of such loans.  Noninterest expense totaled $5,805,000 in 1997 compared
to $4,295,000 in 1996. The increase resulted  primarily from the charge taken in
conjunction with the acquisition of FBWH along with other initiatives undertaken
by NECB.

Through the nine months of 1997, NECB reported net income of $3,425,000 or $0.74
per share.  Exclusive of merger  related  expenses,  net income from  operations
amounted to $4,617,000,  or $1.00 per share, an increase of $653,000 compared to
$3,964,000  or $0.98 per  share for the same  period  last  year.  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.  During  the first  nine  months of 1997,  net  interest  income on a fully
taxable-equivalent  basis totaled $19,280,000 compared to $16,435,000 in 1996. A
reduction in  provisions  for loan losses and  increases in  noninterest  income
(primarily service charges, fees and commissions which increased almost 30% from
last year) and gains on sale of securities also contributed significantly to the
improved  earnings.  Noninterest  revenue  increased  by  $235,000  and  totaled
$2,769,000 in 1997 from  $2,534,000 in 1996 while  noninterest  expense  totaled
$15,111,000 in 1997 compared to $11,638,000 in 1996.

Excluding the onetime  charges  discussed  above,  returns on average assets and
average  equity for the nine  months  ended  September  30,  1997 were 1.22% and
12.05%, compared to 1.21% and 13.26% for the same period a year earlier.

Total assets at September 30, 1997 were $517,883,000 compared to $516,754,000 at
December  31, 1996.  Noteworthy  changes  from  December 31, 1996 include  loans
outstanding  which increased by $13,140,000 and other real estate owned ("OREO")
which decreased by $1,311,000. Total deposits decreased by $14,602,000 and total
borrowings (including long-term debt) increased by $15,447,000 from December 31,
1996.  Total equity  amounted to  $51,578,000  at September 30, 1997 compared to
$49,220,000 at December 31, 1996.

                                       10
<PAGE>

RESULTS OF OPERATIONS--THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
---------------------------------------------------------------------

For the three months ended  September 30, 1997, the Company  reported net income
of $423,000 or $0.09 per share as compared to  $1,545,000 or $0.35 per share for
the same period of 1996. The largest factor in the change was the onetime charge
of $1,192,000  which,  as noted above,  reflected the cost of the acquisition of
FBWH and related restructuring expenses--net of related taxes.

Net  interest  income  increased  $360,000  and  noninterest  revenue  decreased
$23,000.  Noninterest  expenses,  which included  $1,253,000 related to the FBWH
merger, increased by $1,510,000.

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

The  principal  earning  asset of the  Company is its loan  portfolio--which  is
comprised of loans to finance  operations of businesses located primarily 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.

<TABLE>
<CAPTION>

(amounts in thousands)
Three Months Ended September 30,                            1997                    1996                  % Change
------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>                     <C>                    <C>  
Interest income (financial statements)                      $9,827                  $9,403                 4.51%
Tax equivalent adjustment                                       33                      54               (38.89%)
                                                            ------                  ------                       
  Total interest income (on an FTE basis)                    9,860                   9,457                 4.26%
Interest expense                                            (3,425)                 (3,361)                1.90%
                                                            ------                  ------                      
Net interest income (fully taxable equivalent)              $6,435                  $6,096                 5.56%
                                                            ======                  ====== 
</TABLE>

For the  third  quarter  of  1997,  net  interest  income  on an FTE  basis  was
$6,435,000,  a 5% increase over the $6,096,000 in the comparable period in 1996.
A key factor in the $339,000  increase in 1997 was the increase in average loans
outstanding.  Internal  growth and the  acquisition  of MSB (which  provided  an
additional  $77,000,000 in loans  outstanding)  served to increase the quarterly
average by approximately $16,000,000 and $8,000,000, respectively.

                                       11
<PAGE>

The net interest  margin  measures the  difference  in yield on, and the mix of,
interest-earning assets and interest-bearing  liabilities. As shown in the table
below,  the margin for the quarter ended  September 30, 1997  increased to 5.40%
from 5.31% in 1996.  The yield on earning  assets  improved  from 8.23% to 8.28%
while the yield on interest-bearing liabilities was unchanged at 3.68%.
<TABLE>
<CAPTION>
Consolidated Average Balances/Interest Earned or Paid/Rates
-----------------------------------------------------------
Three Months Ended                                           September 30, 1997                         September 30, 1996
-----------------------------------------------------------------------------------------------------------------------------------
                                                    Average                    Average           Average                    Average
(amounts in thousands)                              Balance        Interest       Rate           Balance       Interest        Rate
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>              <C>          <C>            <C>              <C>          <C>
ASSETS:
   Federal funds sold                              $  6,352         $   88       5.50%          $  9,263         $  125       5.35%
   Securities held-to-maturity                        9,294            177       7.56%            13,586            225       6.57%
   Securities available-for-sale                    109,521          1,755       6.36%           108,310          1,656       6.07%
   Mortgages held for sale                            2,031             36       7.03%             3,329             65       7.75%
   Loans (A)                                        345,351          7,804       8.97%           321,357          7,386       9.12%
                                                   --------         ------                      --------         ------            
        Total interest-earning assets               472,549          9,860       8.28%           452,095          9,457       8.23%

   Allowance for loan losses                         (7,003)                                      (7,711)
   Cash and due from banks                           21,636                                       19,941
   Other assets                                      23,764                                       21,519
                                                   --------                                     --------
Total Assets                                       $510,946                                     $489,594
                                                   ========                                     ========

LIABILITIES:

   Regular savings deposits                        $108,155         $  629       2.31%          $102,399         $  585       2.27%
   NOW account deposits                              58,799            200       1.35%            59,156            194       1.30%
   Money market deposits                              3,811             11       1.15%             4,860             15       1.22%
                                                   --------         ------                      --------         ------            
        Total savings deposits                      170,765            840       1.95%           166,415            794       1.89%
   Time deposits                                    180,457          2,324       5.11%           190,211          2,487       5.19%
   Short-term borrowings                              6,344             81       5.07%             1,118             15       5.32%
   Long-term borrowings                              11,407            180       6.26%             4,150             65       6.21%
                                                   --------         ------                      --------         ------            
        Total interest bearing liabilities          368,973          3,425       3.68%           361,894          3,361       3.68%
   Demand deposits                                   86,550                                       79,641
   Other liabilities                                  2,974                                        4,034
                                                   --------                                     --------
        Total Liabilities                           458,497                                      445,569
   Equity                                            52,449                                       44,025
Total Liabilities & Equity                         $510,946                                     $489,594
                                                   ========                                     ========

Net interest income--FTE basis                                      $6,435                                       $6,096
                                                                    ======                                       ======
Net interest margin                                                              5.40%                                        5.31%
Net interest spread                                                              4.60%                                        4.55%
</TABLE>

(A) AVERAGE LOANS INCLUDE NONACCRUING LOANS.

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

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

                                       12
<PAGE>
<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                                $ (37)                    $   3                  $ (40)
Securities held-to-maturity                         (48)                       30                    (78)
Securities available-for-sale                        99                        80                     19
Mortgages held for sale                             (29)                        0                      3
Loans                                               418                      (126)                   544
                                                  -----                     -----                  ----
Total interest-earning assets                       403                       (12)                   447
                                                  -----                     -----                  ----

INTEREST PAID ON:
Regular savings deposits                          $  44                     $  11                   $ 33
NOW account deposits                                  6                         7                     (1)
Money market deposits                                (4)                       (1)                    (3)
                                                  -----                     -----                   ----
      Total savings deposits                         46                        17                     29
Time deposits                                      (163)                      (37)                  (126)
Short-term borrowings                                66                        (1)                    67
Long-term borrowings                                115                         0                    115
                                                  -----                     -----                   ----
Total interest-bearing liabilities                   64                       (20)                    84
                                                  -----                     -----                   ----
Net interest income change                        $ 339                     $   8                   $363
                                                  =====                     =====                   ====
</TABLE>

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

For the quarter ended September 30, 1997,  noninterest income decreased $23,000,
or 3%, from 1996 and totaled  $853,000.  Service  charges,  fees and commissions
increased  23% and  totaled  $636,000  in 1997  compared  to  $519,000  in 1996.
Included in service  charges,  fees and commissions  are fees on deposits,  loan
servicing fees and other fees and charges.  Gains on the sale of loans and other
income decreased by $125,000 and $46,000, respectively. The decrease in gains on
the sale loans  primarily  reflect  NECB's  decision  to retain  the  guaranteed
portion of loans originated under the SBA program. As noted previously, prior to
its acquisition, FBWH usually sold these assets as they were originated.

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

Noninterest  expenses  amounted to $5,805,000  during the third quarter of 1997.
This is a $1,510,000 increase,  or 35%, over $4,295,000 reported during the same
period in 1996.  This  increase is largely  the result of the  charges  taken in
conjunction  with the  acquisition of FBWH net of the initial  savings  achieved
from  the  consolidation  of  FBWH.  Excluding  these  effect  of this  charges,
noninterest  expense increased  $257,000 when compared to the same period a year
earlier. This increase resulted primarily from increases in salaries and benefit
expense,  which  rose in  response  to both  merit  increases  and  Company-paid
insurance expense, and increased furniture and equipment expense.

Results of Operations--Nine Months ended September 30, 1997
-----------------------------------------------------------

For the nine months ended September 30, 1997, the Company reported net income of
$3,425,000 or $0.74 per share.  Exclusive of merger related expenses, net income
from  operations  amounted  to  $4,617,000  or $1.00  per share an  increase  of
$653,000  compared to $3,964,000 or $0.98 per share for the first nine months of
1996. Increases in net interest income and noninterest revenue of $2,917,000 and
$235,000,  respectively,  were offset by the $3,473,000  increase in noninterest
expenses--which includes the $1,253,000 charge discussed previously.

                                       13
<PAGE>

Net Interest Income
-------------------
<TABLE>
<CAPTION>
(amounts in thousands)

Nine Months Ended September 30,                              1997                    1996                  % Change
-------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>                       <C>                  <C>   
Interest income (financial statements)                      $29,180                   $25,390              14.93%
Tax equivalent adjustment                                       114                       186             (38.71%)
                                                            -------                   ------- 
Total interest income (on an FTE basis)                      29,294                    25,576              14.54%
Interest expense                                            (10,014)                   (9,141)              9.55%
                                                            -------                   -------
Net interest income (fully taxable equivalent)              $19,280                   $16,435              17.31%
</TABLE>

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

For the first nine months of 1997, noninterest income increased $235,000, or 9%,
and totaled $2,769,000 compared to $2,534,000 in the previous year. Contributing
significantly to this increase was the 30% increase in service charges, fees and
commissions  which is largely due to the MSB acquisition.  Also  contributing to
the increase were gains on the sale of securities  which increased  $197,000 and
totaled  $168,000  compared to a loss of $29,000 in 1996.  These  increases were
offset by the  $204,000  decrease in gains on the sale of loans and the $195,000
decrease in other income.

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

Through  the  first  nine  months  of 1997,  noninterest  expenses  amounted  to
$15,111,000.  Exclusive of the FBWH charge,  noninterest expense rose $2,220,000
increase,  or 16%, over the $11,638,000 reported during the same period in 1996.
This increase is largely the result of NECB's  acquisition  of MSB in July 1996.
Beyond the effect of the acquisition,  noteworthy  changes occurred in furniture
and  equipment  and  amortization  of goodwill  which  increased by $316,000 and
$151,000,  respectively, from there 1996 levels. Furniture and equipment expense
rose in response to the acquisition and additional lease and maintenance expense
associated with the deployment of new systems and technology. In the last twelve
months, the Company has introduced several new programs  including:  New England
ACCESS, a cash management system;  TELEBANK, a interactive voice response system
which allows  account access via the  telephone;  and check imaging.  Helping to
offset the effect of the above increases was a $105,000 decrease in OREO related
expense,  which amounted to $336,000  compared to $441,000 for the same period a
year earlier.

Financial Condition
-------------------

Total assets at September 30, 1997 were $517,883,000,  an increase of $1,129,000
from  $516,754,000  at December 31,  1996.  During the first nine months of 1997
loans outstanding increased $13,140,000 or 4% to $349,344,000. Aided by moderate
interest  rates  (with the  benchmark  Prime Rate at 8.50%)  and its  innovative
marketing  programs,  NECB was able to continue attracting many new customers to
its bank subsidiaries.  Both securities  available-for-sale and held-to-maturity
decreased  from  December  31,  1996 and ended the  period at  $103,278,000  and
$12,043,000,   respectively,   compared   to   $105,137,000   and   $13,333,000,
respectively,  at  year-end.  Federal  funds were  reduced by  $11,625,000  from
$15,125,000  at December 31, 1996 to $3,500,000  at September 30, 1997.  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 and its customers.

The  $1,311,000  reduction in other real estate owned to $1,005,000 at September
30,  1997.  During  the  first  nine  months  of the year the  Company  acquired
properties  with a value of $1,164,000  through  foreclosure and sold properties
with a market value of $2,442,000.

Total deposits,  which constitute the principal  funding source of the Company's
assets,   decreased   $14,602,000   from  December  31,  1996  and  amounted  to
$442,402,000  at  September  30,  1997.  During the year,  management  increased
borrowings--primarily  from the  Federal  Home Loan Bank of  Boston.  Short-term
borrowings  increased by $7,505,000 and stood at $9,783,000 at quarter-end while
long-term  debt  increased  by  $7,942,000  from  December 31, 1996 and stood at
$11,893,000 at September 30, 1997. Other liabilities were $2,227,000, a decrease
of $2,074,000  from  $4,301,000 at December 31, 1996 and is primarily the result
of the payment made to  dissenting  shareholders  of EQBK.  Total  shareholders'
equity was  $51,578,000  at September 30, 1997,  an increase of $2,358,000  over
December 31, 1996.

                                       14
<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
decreased  from December 31, 1996 and totaled  $12,043,000 at September 30, 1997
compared to $13,333,000 at December 31, 1996.
<TABLE>
<CAPTION>
                                                   September 30, 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              $ 9,203     $ 9,243          $10,317     $10,319
Debt securities issued by states and
    political subdivisions of the states             2,840       2,924            3,016       3,067
                                                   -------     -------          -------     -------
                                                   $12,043     $12,167          $13,333     $13,386
                                                   =======     =======          =======     =======
</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,  1997,  the  net  unrealized  gain on
securities  available-for-sale  was $655,000  while at December 31, 1996 the net
unrealized gain was $368,000, representing a decrease in net unrealized gains of
$287,000.   As  shown   in  the   table   below,   investments   in   securities
available-for-sale   totaled   $103,278,000   at   September   30,  1997  versus
$105,137,000 at December 31, 1996:

<TABLE>
<CAPTION>
                                                              September 30, 1997          December 31, 1996
-------------------------------------------------------------------------------------------------------------
                                                           Amortized                    Amortized
                                                                Cost         Fair            Cost        Fair
(in thousands)                                                 Basis        Value           Basis       Value
-------------------------------------------------------------------------------------------------------------
<S>                                                         <C>          <C>             <C>         <C>     
Marketable equity securities                                $  8,141     $  8,173        $  3,710    $  4,002
Debt securities issued by the U.S. Treasury
   and other U.S. government agencies                         72,091       72,536          82,647      82,638
Corporation debt securities                                    9,521        9,582           8,122       8,117
Mortgage-backed securities                                    12,871       12,987          10,311      10,380
                                                            --------     --------        --------    --------
                                                            $102,624     $103,278        $104,790    $105,137
                                                            ========     ========        ========    ========
</TABLE>

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

Nonperforming  assets  are  assets on which  income  recognition  in the form of
interest  payments  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.

                                       15
<PAGE>

As shown on the table below, total nonperforming  assets decreased $2,688,000 to
$6,069,000 at September 30, 1997 from $8,757,000 at December 31, 1996.
<TABLE>
<CAPTION>
(in thousands)
                                                                                September 30, 1997               December 31,1996
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                         <C>                            <C>   
Nonaccrual loans                                                                            $5,064                         $6,441
OREO                                                                                         1,005                          2,316
                                                                                            ------                         ------
Total nonperforming assets                                                                  $6,069                         $8,757
                                                                                            ======                         ======

Loans past due in excess of ninety days and accruing interest                               $  585                        $   395
Ratio of nonperforming assets to total loans and OREO                                         1.7%                           2.6%
Ratio of nonperforming assets and loans past due in excess of
      ninety days and accruing interest to total loans and OREO                               1.9%                           2.7%
Ratio of allowance for loan losses to total loans                                             2.1%                           2.0%
Ratio of allowance for loan losses to nonperforming assets and
      loans in excess of ninety days past due and accruing interest                         108.9%                          72.8%
Ratio of nonperforming assets and loans in excess of ninety days
      past due and accruing interest to total shareholders' equity                           12.9%                          18.6%
Ratio of nonperforming assets to total assets                                                 1.2%                           1.7%
</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 when necessary are charged to
operating income.

Activity in Nonperforming Assets
(Amounts in thousands)

Nine Months ending September 30,                       1997             1996
----------------------------------------------------------------------------
December 31, 1996 and 1995                           $8,757           $8,314
      Changes incident to acquisition of MSB              0            4,897
     Additions                                        2,861            4,143
     Reductions:

        Payments                                     (1,557)          (2,311)
        Loans returned to performing status            (496)          (1,228)
        Charge-offs and writedowns                   (1,198)          (3,154)
        Sales, net                                   (2,298)          (1,545)
                                                     ------           ------ 
Ending Balance, September 30, 1997 and 1996          $6,069           $9,116
                                                     ======           ======

The decrease in  nonperforming  assets is  primarily  due to the  resolution  of
problem  assets  acquired from the MSB  acquisition  which added  $4,360,000 and
$537,000  in  nonaccural  loans and OREO,  respectively.  In  addition,  reduced
reclassifications  and  increased  sales of OREO served to reduce  nonperforming
assets during 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.

The following  table  summarizes the activity in the allowance for possible loan
losses for the nine months ending September 30, 1997 and 1996 was as follows:

                                       16
<PAGE>

(in thousands)
Nine Months Ended September 30,                    1997             1996
------------------------------------------------------------------------
Balance beginning of period                      $6,660           $5,875
Changes incident to acquisition of MSB                             2,010
Provisions charged to operations                  1,033            1,615
Recoveries on loans previously charged-off          477              265
Loans charged-off                                  (924)          (2,839)
                                                 ------           ------
Balance end of period                            $7,246           $6,926
                                                 ======           ======

Provisions  for possible loan losses  charged to  operations  for the first nine
months of 1997 were  $1,033,000,  representing  an decrease of $582,000 from the
same period in 1996.  During the nine month  period,  charge-offs  decreased  by
$1,915,000.  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 September 30, 1997, the Company exceeded all regulatory capital ratios and
the  subsidiaries  were categorized as "well  capitalized."  The various capital
ratios of the Company for September 30, 1997 and 1996 were:

                   Minimum Level        1997            1996
                   -------------        ----            ----
Total Risk-Based.....    8%           14.38%          13.99%

Tier 1 Risk-Based....    4%           13.12%          12.71%

Leverage.............    4%            9.33%           8.88%


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.

                                       17
<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 - None

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

            (a)         Exhibits
                        Exhibit Number      Exhibit
                        3                   Bylaws of NECB, as amended
                        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 Sept-
ember 30, 1997:

                        (i)         Special Meeting of Stockholders

            On August 5, 1997 it was reported  under Item 5, Other Events,  that
at a special  meeting  of Stockholders of NECB held on July 28, 1997, its Stock-
holders  voted to approve the acquisition of FBWH by NECB.

                        (ii)        Acquisition of FBWH

            In an  initial  report  filed on August  15,  1997 (and  amended  on
October 14, 1997) it was reported  that NECB had completed  its  acquisition  of
FBWH and the required financial  statements and pro forma financial  information
related to the transaction provided.

                        (iii)       Acquisition of CSB

            On  September  19,  1997 it was  reported,  under  Item  5,  that at
separate  meetings on September  16, 1997 and  September  17, 1997 the Boards of
Directors  of NECB and  CSB),  respectively,  approved  a  definitive  agreement
whereby  CSB will be  acquired  by NECB.  The  Agreement  was then  executed  on
September 17, 1997. CSB will become NECB's third banking subsidiary

                                       18
<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: November 13, 1997                  By: s/s Anson C. Hall
                                             -----------------
                                             Anson C. Hall
                                             Vice President and Treasurer

                                       19