SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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

                                   FORM 10-QSB

(Mark One)
[ X ]    QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1999.

[   ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

         For the transition period from _______________ to _______________

                         Commission File Number 0-27747


                              DOLLAR BANCORP, INC.
                              --------------------
             (Exact name of registrant as specified in its charter)

         Delaware                                           52-2197122
---------------------------------            -----------------------------------
(State or other jurisdiction                (IRS Employer Identification number)
of incorporation or organization)



                  893 Franklin Avenue, Newark, New Jersey 07107
                  ---------------------------------------------
                    (Address of principal executive offices)

Registrant's telephone number, including area code:           (973) 483-0001
                                                              --------------


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

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the preceding 12 months (or such shorter  period that the Registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.      (1) Yes /X/  No / /
                                        (2) Yes / /  No /X/

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of stock, as of the latest  practicable  date:  76,000 shares  of common
stock, par value $.01 per share

         Transitional Small Business Disclosure Format (check one):

Yes  /   / No  /X/



<PAGE>



                  DOLLAR BANCORP, INC. AND SUBSIDIARY

                                      INDEX

                                                                       Page

PART I.  FINANCIAL INFORMATION

                  Item 1. Financial Statements

                  Balance Sheets as of
                    September 30, 1999 and March 31, 1999              1

                  Statements of Operations for the
                    three and six  months ended
                    September  30, 1999 and 1998                       2

                  Statements of Stockholders' Equity
                    for the six months ended
                    September 30, 1999                                 3

                  Statements of Cash Flows for the
                    six  months ended September 30, 1999 and 1998      4

                  Notes to Financial Statements                        5

                  Item 2. Management's Discussion and Analysis
                          of Financial Condition and Results of
                          Operations                                   6

PART II. OTHER INFORMATION                                             9



<PAGE>


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


                               Dollar Savings Bank
                              Balance Sheets as of
                      September 30, 1999 and March 31, 1999
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                              At                   At
                                                     September 30, 1999        March 31, 1999
                                                     ------------------        --------------


Assets

<S>                                                     <C>                        <C>
   Cash                                                 $257,872                   $313,575
   Interest bearing deposits                           3,941,774                  2,504,860
   Mortgage-backed securities                             22,576                     28,863
   Loans receivable, net                               5,438,012                  6,231,435
   Premises & equipment                                  292,040                    297,135
   Real estate acquired in settlement of loans           285,187                          0
   Stock in federal home loan bank                        56,500                     56,500
   Refundable income taxes                                 7,403                      7,403
   Other assets                                           25,917                     24,555
                                                          ------                     ------

Total Assets                                         $10,327,281                 $9,464,326
                                                     ===========                 ==========


Liabilities

   Deposits                                            8,752,137                  7,902,237
   Advances for taxes and insurance                       51,320                     57,556
   Other liabilities                                      81,776                     94,571
                                                          ------                     ------

Total liabilities                                      8,885,233                  8,054,364
                                                       ---------                  ---------

Stockholders' Equity

   Common Stock, $1 per share;
     76,000 shares issued                                 76,000                     76,000
   Additional paid in capital                            554,142                    554,142
   Retained earnings                                     811,906                    779,820

Total Stockholders' Equity                             1,442,048                  1,409,962
                                                       ---------                  ---------
Total liabilities and  Stockholders' Equity          $10,327,281                 $9,464,326
                                                     ===========                 ==========
</TABLE>


<PAGE>


                               Dollar Savings Bank
                            Statements of Operations
                       For the three and six months ended
                           September 30, 1999 and 1998
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                 For the three months ended        For the six months ended
                                                         September 30,                    September 30,
                                                 -------------------------         -------------------------
                                                   1999           1998                 1999           1998
                                                 ---------     ----------            ---------      ---------
Interest Income:
<S>                                               <C>            <C>                 <C>            <C>
   Loans                                          $129,797       $153,004            $265,673       $314,678
   Mortgage-backed securities                          514            720               1,118          1,471
   Other                                      50,62534,186         85,028              64,578
                                              ------------         ------              ------
      Total interest income                        180,936        187,910             351,819        380,727
                                                   -------        -------             -------        -------

Interest expense
   Deposits:
      Savings                                       26,188         22,300              49,511         45,340
      Time                                          29,946         40,823              59,098         72,585
                                                    ------         ------              ------         ------
        Total interest expense                      56,134         63,123             108,609        117,925
                                                    ------         ------             -------        -------

Net interest income                                124,802        124,787             243,210        262,802
Provision for loan losses                                0              0                   0              0

Net interest income after provision
   for loan losses                                 124,802        124,787             243,210        262,802
                                                   -------        -------             -------        -------

Non-interest income:
   Loan fees and service charges                     3,325         15,051               7,423         26,157
   Other                                             3,900          3,420               7,666          6,848
                                                     -----          -----               -----          -----
        Total non-interest income                    7,225         18,471              15,089         33,005

Non-interest expense:
   Salaries and employee benefits                   55,454         47,218             107,100         98,697
   Net occupancy expense of premises                 1,096          9,228               4,384         15,921
   Equipment                                         1,667          1,393               3,562          6,763
   Federal insurance premium                         1,285          1,130               2,504          2,384
   Loss from real estate operations                      0              0                   0              0
   Loss from sale of loans                               0              0                   0              0
   Other                                            47,830         63,000             108,663         89,576
                                                  --------        -------              ------        -------
        Total non-interest expense                 107,332        122,039             226,213        213,341

Income (Loss) before income taxes                   24,695         21,219              32,086         82,466

Income taxes                                             0              0                   0              0
                                                   -------        -------              ------         ------
       Net Income                                  $24,695        $21,219             $32,086        $82,466
                                                  ========        =======              ======         ======
</TABLE>


<PAGE>


                               Dollar Savings Bank
                        Statement of Stockholders' Equity
                       Six months ended September 30, 1999
                                   (Unaudited)

<TABLE>
<CAPTION>

                                            Common        Additional       Retained       Total
                                            stock         paid-in          earnings       stockholders'
                                                          capital                         equity


<S>                                           <C>         <C>               <C>               <C>
Balance, March 31, 1999                       $76,000     $ 554,142         $779,820          $1,409,962

Net Income                                                                   $32,086             $32,086


Balance,  September 30, 1999                  $76,000      $554,142         $811,906          $1,442,048
</TABLE>


<PAGE>


                               Dollar Savings Bank
                            Statements of Cash Flows
                  Six months ended September 30, 1999 and 1998
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                          September 30,             September 30,
                                                                              1999                      1998
Cash flows from operating activities:
<S>                                                                     <C>                       <C>
     Net income (loss)                                                  $    32,086               $     82,466
     Adjustments to reconcile net income (loss) to net
         cash provided by operating activities
         Amortization of deferred loan fees                                 (2,003)                    (5,437)
         Depreciation of premises and equipment                               6,328                      6,861
Provision for losses on loans and real estate                                     0                          0
         Loss on sale of loans                                                    0                          0
         Loss on sale of real esstate acquired in settlement of
             loans
                 0                          0
         Decrease in refundable income taxes                                      0                          0
         (Increase) in other assets                                         (1,362)                    (8,008)
         (Decrease) in other liabilities                                   (12,795)                   (35,340)
         (Decrease) increase in accrued interest payable on
           deposits                                                         (2,544)                      8,192
                                                                            -------                      -----

Net cash provided by(used in) operating activities                           19,710                     48,734
                                                                             ------                     ------

Cash flows from investing activities:
     Proceeds from redemption of Federal Home Loan
         Bank stock                                                               0                          0
     Principal repayment on mortgage-backed securities                        6,287                      2,863
     Proceeds from sales of loans                                                 0                          0
     Proceeds from sales of real estate acquired in settlement
          of loans                                                                0                      4,635
     Net decrease in loans receivable                                       510,239                    129,897
     Purchase of equipment                                                  (1,233)                          0
                                                                            -------                          -

Net cash provided by (used in) investing activities                         515,293                    137,395
                                                                            -------                    -------

Cash flows from financing activities:
     Net increase in deposits                                               852,444                    368,356
     (Decrease) increase in advance payments by borrowers
          for taxes and insurance                                           (6,236)                      5,696
                                                                            -------                      -----


Net cash provided by financing activities                                   846,208                    374,052
                                                                            -------                    -------

Net increase in cash and cash equivalents                                 1,381,211                    560,181
Cash and cash equivalents, beginning                                      2,818,435                  2,383,767
                                                                          ---------                  ---------

Cash and cash equivalents, ending                                      $  4,199,646              $   2,943,948
                                                                       ============              =============
</TABLE>


<PAGE>


NOTES TO THE FINANCIAL STATEMENTS

(1)      Basis of Presentation
         ---------------------

         The  accompanying  unaudited  financial  statements  were  prepared  in
accordance  with  instructions  for Form  10-QSB and  therefore,  do not include
information  for footnotes  necessary for a complete  presentation  of financial
position,  results of  operations,  and cash flows in conformity  with generally
accepted  accounting  principles.  The  following  material  under  the  heading
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations"  is  written  with the  presumption  that the  users of the  interim
financial  statements have read, or have access to the latest audited  financial
statements and notes thereto of Dollar Savings Bank (the OBankO).

         All adjustments  (consisting only of normal recurring  accruals) which,
in the opinion of  management,  are  necessary  for a fair  presentation  of the
financial  statements  have been included in the results of  operations  for the
three and six month periods ending September 30, 1999.

         Operating results for the six month period ended September 30, 1999 are
not  necessarily  indicative  of the results that may be expected for the fiscal
year ending March 31, 2000.


(2)      Reorganization into the Holding Company Structure
         -------------------------------------------------
         At a special  meeting of stockholders on September 20, 1999, the Bank's
stockholders  approved  the  reorganization  of the Bank into a holding  company
structure.  The reorganization was completed on October 20, 1999. As a result of
the reorganization, the Bank became a wholly-owned subsidiary of Dollar Bancorp,
Inc., a Delaware  corporation,  and each share of the Bank's common  stock,  par
value $1.00 per share, was  automatically  converted into common stock of Dollar
Bancorp, Inc., par value $.01 per share.

         Because the  reorganization  was completed  subsequent to September 30,
1999, all  information  presented in this report is for the Bank, and not Dollar
Bancorp, Inc.

(3)      Earnings per share
         ------------------

         Earnings  per share are based  upon the  outstanding  common  shares or
76,000  shares.  The  earnings  per share for the  three  and six  months  ended
September 30, 1999 is $.32 and $.42 respectively.

(4)       Book value per share
         --------------------

         The book value per share is based upon the outstanding common shares or
76,000 shares. The book value per share at September 30, 1999 is $18.97.



<PAGE>


ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Forward Looking Statements

         In addition to historical  information,  this Quarterly Report contains
forward-looking  statements.  The forward-looking  statements  contained in this
document are subject to certain risks and uncertainties  that could cause actual
results  to  differ  materially  from  those  projected  in the  forward-looking
statements.  Important factors that might cause such a difference  include,  but
are not limited to,  those  discussed  in this  section  entitled  "Management's
Discussion  and  Analysis of  Financial  Condition  and Results of  Operations."
Readers shouldn't place undue reliance on these forward-looking  statements,  as
they reflect  management's  analysis as of the date of this report. The Bank has
no  obligation to update or revise these  forward-looking  statements to reflect
events or circumstances that occur after the date of this report. Readers should
carefully  review the risk factor described in other documents the Company files
from  time to time  with the  Securities  and  Exchange  Commissison,  including
reports filed on Form 8-K.

Comparison of Financial Condition at September 30, 1999 and March 31, 1999

Assets

         Total assets  increased  $862,955,  or 9.1%, to $10,327,281 at Septembr
30, 1999,  from  $9,464,326 at March 31, 1999.  The increase in total assets was
primarily attributable to a $1,436,914 increase in interest bearing deposits and
a $285,187  increase in real estate  acquired in settlement of loans,  which was
partially  offset by a $793,423  decrease  in loans  receivable,  net, a $55,703
decrease in cash and a $6,287 decrease in mortgage-backed securities.

Liabilities

         Total  liabilities  increased by $830,869,  or 9.4%,  to  $8,885,233 at
September  30, 1999 from  $8,054,364  at March 31, 1999.  Deposits  increased to
$8,752,137  from  $7,902,237  while advances for taxes decreased to $51,320 from
$57,556 and other  liabilities  including  accrued  expenses and  uncashed  bank
checks decreased to $81,776 from $94,571.

Stockholders' Equity

         Stockholders'  equity  increased by $32,086,  or 2.2%, to $1,442,048 at
September  30,  1999  from  $1,409,962  at  March  31,  1999.  The  increase  in
stockholders' equity is attributable to the Bank's net income of $32,086 for the
six month period.

Comparison  of Operating  Results for the Three Months Ended  September 30, 1999
and September 30, 1998

Net Income

         Net income  increased  $3,476 to  $24,695  for the three  months  ended
September  30, 1999 from $21,219 for the three months ended  September 30, 1998.
The  increase  in net  income  resulted  primarily  from a $14,707  decrease  in
non-interest  expense which was partially  offset by a decrease in  non-interest
income of $11,246 and a decrease in interest income of $6,974.

Interest Income

         Interest income  decreased  $6,974,  or 3.7%, to $180,936 for the three
months  ended  September  30,  1999 from  $187,910  for the three  months  ended
September  30,1998.  The decrease in interest income was


<PAGE>



attributed to a $23,207 decrease in interest income on loans and a $206 decrease
in  interest  income  attributable  to  mortgage-backed   securities  which  was
partially offset by a $16,439 increase in other interest income.

Interest Expense

         Interest expense  decreased  $6,989, or 11.1%, to $56,134 for the three
months  ended  September  30,  1999  from  $63,123  for the three  months  ended
September 30, 1998.  This increase was due to a $10,877  decrease in the cost of
time deposits,  which was partially  offset by a $3,888  increase in the cost of
savings deposits.

Provision for Loan Losses

         The Bank did not establish a provision for loan losses during the three
month period ended  September 30, 1999 or September 30, 1998. The Bank maintains
its allowance  for loan losses based upon  management's  periodic  evaluation of
known or inherent risks in the loan portfolio,  the Bank's past loss experience,
level of delinquencies,  adverse situations that may affect a borrower's ability
to repay a loan, the estimated  value of the underlying  collateral,  and market
conditions.  The Bank did not  experience  any loss from real estate  operations
during the three months ended September 30, 1999 or September 30, 1998.

Non-Interest Income

         Non-interest  income  decreased  $11,246,  or 60.9%,  to $7,225 for the
three  months ended  September  30, 1999 from $18,471 for the three months ended
September 30, 1998. The decrease was due to a $11,726  decrease in loan fees and
service  charges  which was offset by a slight  increase  in other  non-interest
income consisting primarily of fees generated by executing money orders.

Non-Interest Expense

         Non-interest  expense  decreased  $14,707 or 12.1%, to $107,332 for the
three months ended  September  30, 1999 from $122,039 for the three months ended
September  30,  1998.  The  decrease  was  primarily  due to a  decrease  in net
occupancy  expense of  premises  of $8,132  and a  decrease  of $15,170 in other
non-interest expenses which were partially offset by an increase in salaries and
employees benefits of $8,236.

Income Tax Expense

         The Bank did not incur any income tax expense  during the three  months
ended  September 30, 1999 and September 30, 1998. This is due to a net operating
loss carryover from previous years.

Comparison of Operating  Results for the Six Months Ended September 30, 1999 and
September 30, 1998

Net Income

         Net  income  decreased  $50,380 to  $32,086  for the six  months  ended
September 30, 1999 from $82,466 for the six months ended September 30, 1998. The
decrease in net income resulted  primarily from a decrease in interest income of
$28,908 and a decrease in  non-interest  income of $17,916  which was  partially
offset by a decrease in interest expense of $9,316.


<PAGE>


Interest Income

         Interest  income  decreased  $28,908,  or 7.6%, to $351,819 for the six
months ended September 30, 1999 from $380,727 for the six months ended September
30,1998. The decrease in interest income was attributed to a $49,005 decrease in
interest income on loans which was partially offset by a $353 in interest income
attributable to mortgage-backed  securitie and a $20,450 increase other interest
income.

Interest Expense

         Interest  expense  decreased  $9,316,  or 7.9%, to $108,609 for the six
months ended September 30, 1999 from $108,609 for the six months ended September
30,  1998.  This  decrease  was due to a  $13,487  decrease  in the cost of time
deposits, which was partially offset by a $4,171 increase in the cost of savings
deposits.

Provision for Loan Losses

         The Bank did not  establish a provision  for loan losses during the six
month period ended  September 30, 1999 or September 30, 1998. The Bank maintains
its allowance  for loan losses based upon  management's  periodic  evaluation of
known or inherent risks in the loan portfolio,  the Bank's past loss experience,
level of delinquencies,  adverse situations that may affect a borrower's ability
to repay a loan, the estimated  value of the underlying  collateral,  and market
conditions.  The Bank did not  experience  any loss from real estate  operations
during the six months ended September 30, 1999 or September 30, 1998.

Non-Interest Income

         Non-interest income decreased $17,916, or 54.3%, to $15,089 for the six
months ended  September 30, 1999 from $33,005 for the six months ended September
30, 1998.  The  decrease was due to a $18,734  decrease in loan fees and service
charges  which was  offset by a slight  increase  in other  non-interest  income
consisting primarily of fees generated by executing money orders.

Non-Interest Expense

         Non-interest expense increased $12,872 or 6.0%, to $226,213 for the six
months ended September 30, 1999 from $213,341 for the six months ended September
30,  1998.  The  increase  was  primarily  due to an increase  in  salaries  and
employees  benefits of $8,403 and an  increase of $19,087 in other  non-interest
expenses  which was partially  offset by a decrease in net occupancy  expense of
premises of $11,537 and a $3,201 decrease in equipment expense.

Income Tax Expense

         The Bank did not incur any  income  tax  expense  during the six months
ended  September 30, 1999 and September 30, 1998. This is due to a net operating
loss carryover from previous years.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

         The Bank's most  significant form of market risk is interest rate risk,
as the majority of the Bank's assets and liabilities are sensitive to changes in
interest rates. The Bank's assets consist primarily of fixed rate mortgage loans
(the  majority  of which  have five  year  balloon  terms),  which  have  longer
maturities than the Bank's liabilities which consist primarily of deposits.  The
Bank's  mortgage  loan  portfolio,  consisting  primarily  of loans  secured  by
residential  real  property  located in Essex  County,  is also subject to risks
associated with the local economy.  The Bank does not own any trading assets. At
June 30, 1999, the Bank did not have any hedging  transactions in place, such as


<PAGE>



interest rate swaps and caps. The Bank's interest rate risk  management  focuses
primarily on evaluating  and managing the  composition  of the Bank's assets and
liabilities in the context of various  interest rate  scenarios.  Factors beyond
management's control,  such as market interest rates and competition,  also have
an impact on interest income and interest expense.

         During the  quarter  ended  June 30,  1999,  there were no  significant
changes in the Bank's assessment of market risk.



PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         There are various claims and lawsuits in which the Bank is periodically
involved  incidental to the Bank's  business.  In the opinion of management,  no
material loss is expected from any of such pending claims or lawsuits.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         (a) Changes in Securities.

         Not applicable.

         (b) Use of proceeds.

         Not applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         (a) Defaults upon senior securities.

         Not applicable.

         (b) Use of proceeds.

         Not applicable.

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

         On September 20, 1999, the Bank held a special  meeting of stockholders
for the purpose of  approving  the  reorganization  of the Bank into the holding
company  structure  with the  formation  of Dollar  Bancorp,  Inc. as the Bank's
Delaware  chartered stock holding company.  76,000 shares were voted in favor of
the  proposal,  no shares  were voted  against the  proposal,  and there were no
abstentions.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORT ON FORM 8-K.

         Exhibit 27 EDGAR Financial Data Schedule.


<PAGE>


                                   SIGNATURES

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


                                                     DOLLAR BANCORP, INC.


Date:   November 11, 1999                  By: /s/ Robert DeMane
                                           -------------------------------------
                                           Robert DeMane
                                           President and Chief Executive Officer



Date:   November 11, 1999                  By: /s/ Susan L. Velardi
                                           -------------------------------------
                                           Susan L. Velardi
                                           Vice President and Treasurer