FORM 10-Q -- QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

                                 UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549
                                  FORM 10-Q



(X) Quarter Report Pursuant to Section 13 or 15(d) of the Securities Exchange
       Act of 1934
For the quarterly period ended          September 30, 1997
                                 --------------------------------

                                     or

( ) 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:           0-14745
                        -------------------------


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

            Pennsylvania                                  23-2233584
----------------------------------------    ----------------------------------
    (State or other jurisdiction of                    (I.R.S. Employer
     incorporation or organization)                   Identification No.)

     PO Box 57, Selinsgrove, Pennsylvania 		                     17870
------------------------------------------------------------------------------
    (Address of principal executive offices)                     (Zip code)

                               (717)-374-1131
------------------------------------------------------------------------------
              Registrant's telephone number, including area code

                                    N/A
------------------------------------------------------------------------------
(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 for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                  Yes      X                             No

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                 PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

   Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

                  Yes                                    No

                    APPLICABLE ONLY TO CORPORATE ISSUERS:

   Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.

     Common Stock, $1.25 Par Value                      4,125,575
   ---------------------------------    ----------------------------------------
                Class                   Outstanding Shares At September 30, 1997
<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART I

Item 1.  Financial Statements

<TABLE>
                                   SUN BANCORP, INC.
                        CONDENSED CONSOLIDATED BALANCE SHEET
<CAPTION>
(In Thousands)
                                        		September 30, 1997 December 31, 1996
                                               Unaudited          (Note)
                                          ------------------ -----------------
<S>                                             <C>                 <C>
ASSETS
<S>                                             <C>                 <C> 
Cash and due from banks			                      $    13,597       		$    6,793
Interest-bearing deposits in banks 	                  4,862                706
                                                -----------         ----------
Total Cash and cash equivalents                      18,459              7,499
                                                -----------         ----------
Securities available for sale                       153,513            136,538
Loans (net of unearned income of $4,340
      and $5,357)               	                   312,809            216,376
   Less:  Deferred loan fees	                          (616)           	  (661)
          Allowance for possible loan losses         (3,518)   				     (2,490)
                                                -----------        -----------
	  Net loans			                                     308,675     				   213,225
                                                -----------        -----------

Bank premises and equipment, Net		     	              8,844   	          5,078
Other real estate owned              		                 355                311
Intangible asset, Goodwill                           11,135                 -
Accrued interest and other assets		                   5,729              4,739
                                                -----------        -----------
	     Total assets			                            $  506,710         $  367,390
                                                ===========        ===========
</TABLE>

Note: The balance sheet at December 31, 1996 has been derived from the audited
      financial statements at that date but does not include all the information
      and footnotes required by generally accepted accounting principles for
      complete financial statements.  

The accompanying notes are an integral part of these financial statements.
<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART I

Item 1.  Financial Statements
<TABLE>
                                       SUN BANCORP, INC.
                             CONDENSED CONSOLIDATED BALANCE SHEET
<CAPTION>
(In Thousands)
					                                     September 30, 1997 December 31, 1996
                                               Unaudited           (Note)
                                          ------------------ -----------------
LIABILITIES & SHAREHOLDERS' EQUITY

Deposits:
   <S>                                          <C>                  <C>
   Noninterest-bearing                        	 $   33,340           $  19,977
   Interest-bearing  			                           294,859             185,642
                                                ----------           ---------
	     Total deposits	                   			        328,199             205,619
                                                ----------           ---------
<CAPTION>
Short-term borrowings:
   <S>                                          <C>                  <C>
   Federal funds purchased and
      securities sold under agreements
      to repurchase	                       	        19,506              35,823
   Other borrowed funds                             91,703         		   83,625
   Accrued interest and other liabilities            3,695  	            3,457
                                                ----------           ---------
      Total liabilities                            443,103        	    328,524
                                                ----------           ---------
<CAPTION>
Shareholders' Equity
   <S>                                          <C>                  <C> 
   Common Stock, Par value $1.25	               $    5,217      		   $   4,272
   Authorized 20,000,000 shares
   Issued 4,173,084 shares in 1997
          3,417,358 shares in 1996
   Additional Paid in Capital        				           56,001              30,404
   Retained earnings                            	    1,612               4,927
   Unrealized gains on available-for-sale
      securities, net                                2,186           	     672
   Less Treasury stock, At cost
        47,509 Shares in 1997 and 1996        	     (1,409)    			      (1,409)
                                                ----------           ---------
Total shareholders' equity                       	  63,607          	   38,866
                                                ----------           ---------
Total liabilities and
	     shareholders' equity	           	         $  506,710           $ 367,390
                                                ==========           =========
</TABLE>

Note: The balance sheet at December 31, 1996 has been derived from the audited
      financial statements at that date but does not include all the information
      and footnotes required by generally accepted accounting principles for
      complete financial statements.

The accompanying notes are an integral part of these financial statements.
<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART I

Item 1.  Financial Statements
<TABLE>
                                SUN BANCORP, INC.
                          CONSOLIDATED STATEMENT OF INCOME
                                  (UNAUDITED)
<CAPTION>
(In Thousands)
    	                                                    For the Three Months      For the Nine Months
	                                                         Ended September 30        Ended September 30
                                                       -----------------------    ---------------------   
                                                       	1997            	1996      1997           1996
Interest and Dividend Income:
   <S>                                                 <C>              <C>       <C>            <C> 
   Interest and fees on loans                          $7,222           $4,943    $17,032         $14,486
   Interest on deposits in banks    	                     136                8        189              26
Income from available-for-sale securities
	  Taxable                                              1,503           	1,271      4,094           3,914
   Tax Exempt                                  			        680              450      1,989           1,318
 	 Dividends                                              183              146        546             368
                                                       ------           ------    -------         -------
    	 Total interest and dividend income                9,724            6,818     23,850          20,112
                                                       ------           ------    -------         -------
Interest Expense:
   Interest on deposits   	                             2,745            2,088      7,018           6,157
   Interest on short-term borrowings                      267 	            559        591           1,184
   Interest on other borrowed funds                     1,609 	            743      4,256           2,742
                                                       ------           ------    -------         -------  
      Total interest expense                            4,621            3,390     11,865          10,083
                                                       ------           ------    -------         -------
         Net interest income                            5,103 	          3,428     11,985          10,029

Provision for possible loan losses	                       300    	         425        875             575
                                                       ------           ------    -------         -------
   	Net interest income,
	     after provision for
      possible loan losses                            	$4,803           $3,003     11,110           9,454

</TABLE>
<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART I

Item 1.  Financial Statements
<TABLE>
                                 SUN BANCORP, INC.
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
                                   -----------
                                   (Continued)
<CAPTION>
(In Thousands)
    							                                           	 For the Three Months           For the Nine Months
   		    		    		                                        Ended September 30             Ended September 30
                                                     -------------------------        -----------------------
                                         			         	 	1997         		  1996            1997           1996
Other Operating Income:
   <S>                                               <C>              <C>             <C>            <C>
   Service charges on deposit accounts            	  $    304 	        $   130        $    644       $    378
   Trust income                                           108               83             324            222
   Other income   			                                     165              133             385            404
   Net security gains                                     433              358           1,301            358
   Income from insurance subsidiary                        33               68              99            184 
                                                     --------          -------        --------       --------
Total other operating income		                          1,043              772           2,753         1,546
                                                     --------          -------        --------       -------- 
Other Operating Expense:
   Salaries and employee benefits                       1,413              897           3,263          2,599
   Net occupancy expense                                  236               91             454            309
   Furniture and equipment expenses                       200               85             460            293
   Other expenses                                       1,049              444           1,998          1,317
   Expenses of insurance subsidiary                        70               37             109            102
   Amortization of intangible asset (Goodwill)            189               -              189             -      
                                                     --------          -------        --------       --------
Total other operating expense		                         3,157 	       	  1,554           6,473          4,620
                                                     --------          -------        --------       --------

Income before income tax provision                      2,689            2,221           7,390          6,380

Income tax provision                                      612              534           1,675          1,645 
                                                     --------          -------        --------       --------
Net income		                                         $  2,077         $  1,687       $   5,715      $   4,735 
                                                     ========          =======        ========       ========

PER SHARE DATA
   
   Net Income				                                    $   0.50      	   $  0.46        $   1.53       $   1.33
   Dividends Paid    	                               $   0.28         	$  0.23        $   0.77       $   0.65  

Weighted average number of
   shares outstanding                               4,128,102        3,578,366       3,746,645      3,541,121

The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART I
Item 1.  Financial Statements
<TABLE>
                                    SUN BANCORP, INC.
                         CONSOLIDATED STATEMENT OF CASH FLOWS
                                      (UNAUDITED)
                                      -----------
<CAPTION>
(In Thousands)
                  						                                  Nine Months Ended
								                                                    September 30
                                                       -----------------------
                                                        1997       	    1996
<S>                                                    <C>             <C>
Cash flows from operating activities:
   Net income      			                            		 	 $ 5,715         $ 4,735
      Adjustments to reconcile net income to net cash
	       provided by operating activities:
	        Provision for possible loan and other
         real estate losses                 	       	    1,055             575
        	Provision for depreciation	                 	     493             258
         Amortization and accretion, net                   328              - 
        	Net security gains		                       		 ( 1,301)        (   358)
         Gain on sale of bank premises                 (    83)             -
	        (Increase) in accrued interest and
	          other assets		                      				   	(   391)        ( 2,696)
    	    Increase (decrease) in accrued interest and
	          other liabilities					                      (   457)            527
                                                       -------         -------
      Net cash provided by operating activities          5,359 	         3,041
                                                       -------         -------
Cash flows from investing activities:
    Proceeds from sales of available-for-sale 
        securities                                      12,858           3,760
    Proceeds from maturities of available-for-sale
   	    securities 				                 	               13,347          15,115
    Purchases of available-for-sale securities 	 	     (23,937)        (38,674)
    Net (increase) decrease in loans                     1,646         (12,491)
    Proceeds from sale of bank premises                    266              -
    Capital expenditures				                           ( 1,096)        (   681)
                                                       -------         --------
	      Net cash provided by (used in) investing 
           activities                                    3,084          (32,971)
                                                       -------         --------
Cash flows from financing activities:
     Net increase in deposit accounts				                8,546          12,385
     Net increase (decrease) in short-term borrowings  (17,417)         24,601
     Proceeds from other borrowed funds			              20,000          18,525
     Repayments of other borrowed funds			             (12,003)     	  (21,313)
     Cash dividends paid					                          ( 3,003)        ( 2,292)
     Proceeds from sale of stock for employee
          benefits program					                            451             214
     Cash and cash equivalents received from
          issuance of stock related to acquisition
          of Bucktail Bank and Trust Company             6,093              -
     Offering costs paid                               (   150)             -
                                                       -------         -------
Net cash provided by financing activities	               2,517          32,120
                                                       -------         -------
Net increase in cash and cash equivalents               10,960           2,190
Cash and cash equivalents at beginning of period		       7,499           6,471
                                                       -------         -------
Cash and cash equivalents at end of period			          $18,459         $ 8,661
                                                       =======         =======

The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART I

Item 1. Financial Statements
<TABLE>
                                   SUN BANCORP, INC.
                         CONSOLIDATED STATEMENT OF CASH FLOWS
                                      (UNAUDITED)
                                      -----------
                                      (Continued) 
<CAPTION>
(In Thousands)
                                                         For the Nine Months
                                                          Ended September 30
                                                      ------------------------
Supplemental disclosure of cash flow information:
     <S>                                              <C>              <C>
     Cash paid during the period for:
         	Interest paid					                          $11,286 	        $10,002
          Income taxes paid           					             1,600            1,875

<CAPTION>
Supplemental schedule of noncash investing
     and financing activities (in thousands):

     During the nine-month period ended September 30,
          1997, loans with an estimated value of 
          $244,000 were reclassified to other real 
          estate owned.

     On June 30, 1997, SUN acquired all of the capital
          stock of Bucktail Bank and Trust Company in
          exchange for shares of SUN's common stock
          valued at $20,213,000.  In conjunction with
          the acquisition, liabilities were assumed
          as follows:

     <S>                                              <C>
     Cash and cash equivalents acquired               $  6,093
     Fair value of other assets acquired               130,030
                                                      --------
                                                       136,123
     Value of stock issued by SUN, net of
          offering costs                              ( 20,063)
                                                      --------
          Liabilities assumed                         $116,060
                                                      ========

The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 
SUN BANCORP, INC.
FORM 10-Q
PART I

Item 1.  Financial Statements


                                  SUN BANCORP, INC.
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                     (UNAUDITED)

Note 1 -- Basis of Presentation
          ---------------------

    The consolidated financial statements include the accounts of SUN BANCORP,
INC. ("SUN") and subsidiaries, Sun Bank and the Pennsylvania SUN Life Insurance
Company.  SUN is a limited partner to two partnerships which were formed for the
purpose of building, owning and operating affordable elderly apartment complexes
in SUN's market area.  All material intercompany balances and transactions have
been eliminated in consolidation.

   	The accompanying unaudited consolidated financial statements for the
interim periods do not include all of the information and footnotes required
by generally accepted accounting principles.  However, in the opinion of
management, all adjustments necessary for a fair presentation of the results 
of the interim period have been included.  Operating results for the three-
and nine-month periods ended September 30, 1997 are not necessarily indicative 
of the results that may be expected for the year ending December 31, 1997.

   	The accounting policies followed in the presentation of interim financial
results are the same as those followed on an annual basis.  These policies are
presented on pages 10 and 11 of the 1996 Annual Report to Shareholders.

Note 2 -- Purchase of Bucktail Bank and Trust Company
          -------------------------------------------

    On June 30, 1997, SUN acquired Bucktail Bank and Trust Company ("Bucktail")
from FNB Corporation, a multi-bank holding company headquartered in Hermitage,
Pennsylvania.  Concurrently, Bucktail was merged into Sun Bank.  The acquistion,
which has been accounted for as a purchase, resulted in the issuance of 565,384 
shares of SUN common stock pursuant to a private placement in exchange for all
of the outstanding shares of Bucktail held by FNB.  Based on the market price of
SUN's common stock as of June 30, 1997, the total cost of the acquisition was
$20,063,000.
 
    The pro forma combined operating results provided in the table below are
presented as if the acquisition had been effective on January 1, 1996.  The 
pro forma results include adjustments for the amortization of goodwill and other
charges in depreciation expense, interest expense and interest income which 
result from accounting for the purchase of Bucktail's assets and assumption of
Bucktail's liabilities at their fair market values.  In addition, overhead 
charges of $375,000 for the nine-months ended September 30, 1997 and $563,000 
for the corresponding period of 1996 have been eliminated from the combined 
historical results of operations based on the excess of historical overhead 
charges made by the former parent company over the estimated cost of
providing these services.
<TABLE>
<CAPTION>
(In Thousands, except                          Nine Months ended September 30
 net income per share)                            1997                1996
                                                  ----                ----
<S>                                              <C>                 <C>
Net interest income                              $ 14,917             $ 14,216

Net income                                       $  6,415             $  5,609

Net income per common share                      $   1.56            $    1.37

<PAGE>
SUN BANCORP, INC.
FOR 10-Q
PART I

Note 3 -- Subsequent Event - Announcement of Stock Split
          ---------------------------------------------- 

    On November 3, 1997, SUN issued a press release announcing a three-for-two 
split of its common stock, effective for shareholders of record as of the close 
of business on November 28, 1997, with the additional shares to be distributed 
on December 12, 1997.  Since this transaction is expected to be consummated 
after the issuance of the accompanying financial statements, per share data does
not include the effect of the stock split.

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

    The following is management's discussion and analysis of the significant
changes in the results of operations, capital resources and liquidity presented
in its accompanying consolidated financial statements for SUN Bancorp, Inc., a
bank holding company ("SUN"), and its wholly-owned subsidiary, Sun Bank.  SUN's
consolidated financial condition and results of operations consist almost 
entirely of the bank's financial condition and results of operations.  This 
discussion should be read in conjunction with the 1996 Annual Report. Current 
performance does not guarantee, assure or may be indicative of similar 
performance in the future, and may not be indicative of future results.
   
    SUN's net income for the nine months ended September 30, 1997 amounted to
$5,715,000, an increase of 20.7% over the corresponding period of 1996. 
Earnings per share rose to $1.53 for the first nine months of 1997, or an 
increase of 15.0% from the $1.33 earnings per share realized for the same period
of 1996.  SUN achieved a 1.8% return on average assets and a 16.1% return on 
average equity for the nine months ended September 30, 1997, compared to ratios 
of 1.9% and 17.4% for the first nine months of 1996.  For the third quarter of 
1997, SUN's earnings were $2,077,000, which represented an increase of $390,000,
or 23.1%, over the third quarter of 1996.  Earnings per share for the three 
months ended September 30, 1997 and 1996 were $0.50 and $0.46, respectively,
which was an increase of 8.7%.  Per share amounts have been adjusted to give 
retroactive effect to 5% stock dividends issued in the second quarter of 1997
and 1996.  Per share amounts have not been adjusted for the effects of the 
three-for-two stock split, which is to result in the issuance of additional 
shares in December 1997 
(see Note 3).

Results of Operations - Three Months Ended September 30, 1997 and 1996
----------------------------------------------------------------------

    SUN's statement of income for the third quarter of 1997, compared to the 
corresponding period of 1996, was significantly affected by the acquisition of 
Bucktail Bank and Trust Company ("Bucktail") on June 30, 1997.  Due primarily to
the purchase of Bucktail, SUN's average balances of earning assets and interest-
bearing liabilities increased substantially, resulting in large increases in 
total interest income and total interest expense, and an overall increase in net
interest income of $1,675,000, or 48.9%.

    Total other operating income increased $271,000, or 35.1%, in the third
quarter of 1997 compared to the third quarter of 1996.  Service charges on
accounts increased $174,000 due in part to an increase in automatic teller fees.
Also, net security gains, primarily from sales of equity securities, increased 
$75,000 in the three months ended September 30, 1997 compared to 1996.

    Other operating expenses increased to $3,157,000 in the third quarter of
1997, compared to $1,554,000 in 1996.  Increases in salaries and employee 
benifits, net occupancy expense, furniture and equipment expense, and other 
expenses were reflective of increased operating costs associated with the 
addition of seven former Bucktail branch locations.  Also, amortization expense 
of $189,000 was recorded in the third quarter of 1997, resulting from goodwill
related to the Bucktail acquisiton.  Other factors that resulted in increased
operating expenses in the third quarter of 1997, compared to the prior year, 
include increased furniture and equipment expenses related to expanding and
relocating the Northumberland and Shamokin Dam branch operations, and a write-
down of the estimated value of other real estate of $180,000 (included in other
expenses).

Results of Operations - Nine Months Ended September 30, 1997 and 1996
---------------------------------------------------------------------

    The increase in SUN's net earnings for the nine-month period ended 
September 30, 1997, compared to the same period in 1996, was attributable 
primarily to increases in net interest income and net security gains, 
partially reduced by increases in other operating expenses and the provision
for possible loan losses.  Net interest income for the first nine months of
1997 increased $1,956,000, or 19.5%, over the corresponding period in 1996,
principally due to increased volumes in the third quarter of 1997 resulting
from the Bucktail acquistition, as described above.  The provision for
possible loan losses increased $300,000 for the nine months ended 
September 30, 1997 as a result of management's desire to maintain the allowance
for loan losses at a level in excess of 1% of total loans, while absorbing net
loan charge-offs of $1,140,000 primarily related to installment loans.  Other
operating income increased $1,207,000, or 78.1% over the first nine months of
1996, as net security gains increased $943,000.  Other operating expenses 
increased $1,853,000, or 40.1%, for the nine months ended September 30, 1997
over the same period in 1996, principally for the reasons described above in
the third quarter analysis.

Balance Sheet - September 30, 1997 and December 31, 1996
--------------------------------------------------------

    Total assets were $506,710,000 at September 30, 1997, an increase of 37.9% 
over the amount at December 31, 1996.  Also, total liablities increased 
$114,579,000, or 34.9%, at September 30. 1997 compared to December 31, 1996.  
The largest contributing factor to SUN's asset growth over this time period
was the acquistion of Bucktail, as discussed earlier.  SUN's total shareholders'
equity increased $20,063,000 as a result of the issuance of common stock related
to the Bucktail acquisition.  

<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART I

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

Capital Adequacy
----------------

    Management believes capital is being maintained at adequate levels.  SUN
paid a cash dividend of $.28 per share to its stockholders on September 12,
1997.  SUN's stock is traded publicly on the NASDAQ national market system
under the symbol SUBI.  SUN's strong capital position is evidenced by the
following capital ratios which are well above the regulatory minimum levels.

</TABLE>
<TABLE>
<CAPTION>
                                                       For Capital
                			          Actual 		     Ratio 	  Adequacy Purposes
<S>                           <C>           <C>           <C>
As of September 30, 1997
Total Capital
  (to Risk Weighted Assets)  	53,804        17.4%        	8.0%

Tier I Capital
  (to Risk Weighted Assets)   50,286        16.5%       		4.0%

Tier I Capital
  (to Average Assets)         50,286        12.1%         4.0%

As of December 31, 1996
Total Capital
  (to Risk Weighted Assets)   40,684        18.4%         8.0%

Tier I Capital
  (to Risk Weighted Assets)   38,194        17.3%         4.0%

Tier I Capital
  (to Average Assets)         38,194        11.1%         4.0%


Regulatory Activity
-------------------

    From time to time, various types of federal and state legislation has been
proposed that could result in additional regulation of, and restrictions on, 
the business of SUN and Sun Bank.  It cannot be predicted whether such legis-
lation will be adopted or, if adopted, how such legislation would affect the 
business of SUN and Sun Bank.  As a consequence of the extensive regulation of
commercial banking activities in the United States, SUN's and Sun Bank's 
business is particularly susceptible to being affected by federal legislation
and regulations that may increase the cost of doing business.  Except as 
described above, Management believes that the effect of the provisions of
legislation on the liquidity, capital resources and results of operations of
SUN will be immaterial.  Management is not aware of any other current specific
recommendations by regulatory authorities or proposed legislation, which if
implemented, would have a material adverse effect upon the liquidity, capital
reserves or results of operations, although the general cost of compliance with
numerous and multiple federal and state laws and regulations does have, and in
the future may have, a negative impact on SUN's results or operations.

    Further, the business of SUN is also affected by the state of the financial
services industry in general.  As a result of legal and industry changes, 
Management predicts that the industry will continue to experience an increase in 
consolidations and mergers as the finanacial services industry strives for 
greater cost efficiencies and market share.  Management also expects increased
diversification of financial products and services offered by Sun Bank and its
competitors.  Management believes that such consolidations and mergers, and
diversificaton of products and services may enhance its competitive position
as a community bank.

</TABLE>
<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART II

Items 1, 2, 3, and 4 -- Omitted pursuant to instructions to Part II


Item 5 -- Other information

    On November 3, 1997, the Board of Directors approved a three-for-two common
stock split, and an increase in the quarterly dividend payment to $0.195 per
share payable December 12, 1997 to shareholders of record November 28, 1997.

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

    A report on Form 8-k was filed on July 11, 1997, and amended on 
September 30, 1997.  This report, as amended, stated that on June 30, 1997,
Registrant completed the acquisition of Bucktail Bank and Trust Company from FNB
Corporation by issuing 565,384 shares of SUN common stock in exchange for all of
the outstanding shares of Bucktail.


<PAGE>
SUN BANCORP, INC.
FORM 10-Q
PART II

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.





                                             								SUN BANCORP, INC.

Date 11/13/97                            		        /s/ Fred W. Kelly, Jr.
     --------                                     -----------------------
								                                            Fred W. Kelly, Jr.
							                                          Chief Executive Officer
							                                       (Principal Executive Officer)




                                                  /s/ Jeffrey E. Hoyt
                                                 ----------------------
             								                               Jeffrey E. Hoyt
						                            	Exec. Vice President, Chief Operating Officer
                                                     and Secretary
							                                     (Principal Financial Officer and
							                                        Principal Accounting Officer)



SUN BANCORP, INC.
P.O. Box 57
Selinsgrove, PA  17870
(717)374-1131