|   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
|-- | ----------------------------------------------------------------------------------------
|   | For the quarterly period ended September 30, 2003                                       
|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: 0-23293                                                         

|**Delaware***(State or other jurisdiction
of incorporation or organization)* |                                                                                    | **06-1497903***(I.R.S. Employer
Identification No.)*
|---------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | ----------------------------------------------------
|                                                                             | **18 Oakland Avenue, Warwick, New York***(Address of principal executive offices)* | **10990-0591***(Zip code)*                          
|                                                                             | **(845) 986-2206***(Registrant's telephone number, including area code)*           |                                                     

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 for the past 90 days.

Yes  X
No

Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).

YES X NO

As of November 14, 2003, there were 4,515,724 shares of the registrant's common stock outstanding.



|                                   |                                                                                                          | Page
Number
|---------------------------------- | -------------------------------------------------------------------------------------------------------- | -----------
|**PART I - FINANCIAL INFORMATION**
|                                  
|Item 1.                            | Financial Statements --- Unaudited                                                                       |            
|                                   |                                                                                                          |            
|                                   | Consolidated Statements of Financial Condition at
September 30, 2003 and December 31, 2002               | 4          
|                                   |                                                                                                          |            
|                                   | Consolidated Statements of Income for the three months
and nine months ended September 30, 2003 and 2002 | 5          
|                                   |                                                                                                          |            
|                                   | Consolidated Statement of Changes in Equity for
the nine months ended September 30, 2003 and 2002        | 6          
|                                   |                                                                                                          |            
|                                   | Consolidated Statements of Cash Flows for the nine
months ended September 30, 2003 and 2002              | 7          
|                                   |                                                                                                          |            
|                                   | Notes to Unaudited Consolidated Financial Statements                                                     | 8-13       
|                                   |                                                                                                          |            
|Item 2.                            | Management's Discussion and Analysis of Financial
Condition and Results of Operations                    | 13-22      
|                                   |                                                                                                          |            
|Item 3.                            | Quantitative and Qualitative Disclosures about Market Risk                                               | 22         
|                                   |                                                                                                          |            
|Item 4.                            | Controls and Procedures                                                                                  | 23         
|                                   |                                                                                                          |            
|**PART II --- OTHER INFORMATION** 
|                                   |                                                                                                          |            
|Item 1.                            | Legal Proceedings                                                                                        | 23         
|                                   |                                                                                                          |            
|Item 2.                            | Changes in Securities                                                                                    | 23         
|                                   |                                                                                                          |            
|Item 3.                            | Defaults Upon Senior Securities                                                                          | 23         
|                                   |                                                                                                          |            
|Item 4.                            | Submission of Matters to a Vote of Security Holders                                                      | 23         
|                                   |                                                                                                          |            
|Item 5.                            | Other Information                                                                                        | 23         
|                                   |                                                                                                          |            
|Item 6.                            | Exhibits and Reports on Form 8-K                                                                         | 23-24      
|                                   |                                                                                                          |            
|Signature Page                     | 25                                                                                                      
|                                   |                                                                                                          |            
|Exhibit Index                     

|Statements contained in this Form 10-Q which are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited
to, general economic conditions; changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies or guidelines; changes in
legislation or regulation; other economic, competitive, governmental, regulatory or technological factors affecting the Company's operations, pricing, products and services; and other risks detailed
in documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements made by us are based on beliefs, plans, objectives, goals, expectations,
anticipations, estimates and intention of management as of the date made and are not guarantees of future performance. We expressly disclaim any obligation to update or revise any forward-looking
statements based on the occurrence of future events, the receipt of new information, or otherwise.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

**PART I** - **FINANCIAL INFORMATION**

**Item 1. Financial Statements - Unaudited**

|                                         |                                                                                                                                                                                                                                                                                                     |  | September 30, 2003     |  | December 31, 2002
|---------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------- |  | -----------------
|                                         |                                                                                                                                                                                                                                                                                                     |  | (Dollars in thousands)
|**ASSETS**                               |                                                                                                                                                                                                                                                                                                     |  |                        | 
|                                         | Cash on hand and in banks                                                                                                                                                                                                                                                                           |  | $  75,458              |  | $  59,667        
|                                         | Securities:                                                                                                                                                                                                                                                                                         |  |                        |  |                  
|                                         | Available-for-sale, at fair value                                                                                                                                                                                                                                                                   |  | 316,069                |  | 208,787          
|                                         | Held-to-maturity, at amortized cost (fair value of $3,626 at
      September 30, 2003 and $2,812 at December 31, 2002)                                                                                                                                                                              |  | 3,618                  |  | 2,810            
|                                         | Total securities                                                                                                                                                                                                                                                                                    |  | 319,687                |  | 211,597          
|                                         | Residential real estate loans, net                                                                                                                                                                                                                                                                  |  | 113,261                |  | 235,156          
|                                         | Residential real estate loans held for sale                                                                                                                                                                                                                                                         |  | 2,823                  |  | 4,794            
|                                         | Multi family and commercial real estate loans, net                                                                                                                                                                                                                                                  |  | 154,833                |  | 152,521          
|                                         | Consumer loans, net                                                                                                                                                                                                                                                                                 |  | 44,538                 |  | 52,115           
|                                         | Commercial business loans, net                                                                                                                                                                                                                                                                      |  | 23,202                 |  | 24,619           
|                                         | Total loans                                                                                                                                                                                                                                                                                         |  | 338,657                |  | 469,205          
|                                         | Allowance for loan losses                                                                                                                                                                                                                                                                           |  | (4,922)                |  | (4,932)          
|                                         | Total loans, net                                                                                                                                                                                                                                                                                    |  | 333,735                |  | 464,273          
|                                         | Accrued interest receivable                                                                                                                                                                                                                                                                         |  | 3,076                  |  | 3,381            
|                                         | Federal Home Loan Bank stock                                                                                                                                                                                                                                                                        |  | 9,375                  |  | 11,200           
|                                         | Bank premises ∓ equipment, net                                                                                                                                                                                                                                                                   |  | 9,478                  |  | 9,266            
|                                         | Other real estate owned, net                                                                                                                                                                                                                                                                        |  | 99                     |  | 1,145            
|                                         | Bank owned life insurance                                                                                                                                                                                                                                                                           |  | 12,611                 |  | 12,064           
|                                         | Goodwill and other intangible assets                                                                                                                                                                                                                                                                |  | 2,454                  |  | 2,609            
|                                         | Other assets                                                                                                                                                                                                                                                                                        |  | 5,781                  |  | 6,036            
|                                         | Total assets                                                                                                                                                                                                                                                                                        |  | $771,754               |  | $781,238         
|                                         |                                                                                                                                                                                                                                                                                                     |  |                        | 
|**LIABILITIES AND STOCKHOLDERS' EQUITY** |                                                                                                                                                                                                                                                                                                     |  |                        | 
|Liabilities:                             |                                                                                                                                                                                                                                                                                                     |  |                        | 
|                                         | Deposits:                                                                                                                                                                                                                                                                                           |  |                        |  |                  
|                                         | Time                                                                                                                                                                                                                                                                                                |  | $103,897               |  | $117,253         
|                                         | Money market                                                                                                                                                                                                                                                                                        |  | 70,910                 |  | 70,081           
|                                         | Savings and NOW                                                                                                                                                                                                                                                                                     |  | 252,804                |  | 223,737          
|                                         | Non-interest-bearing checking                                                                                                                                                                                                                                                                       |  | 65,792                 |  | 55,604           
|                                         | Total depositor accounts                                                                                                                                                                                                                                                                            |  | 493,403                |  | 466,675          
|                                         | Mortgagors' escrow funds                                                                                                                                                                                                                                                                            |  | 1,000                  |  | 3,368            
|                                         | Accrued interest payable                                                                                                                                                                                                                                                                            |  | 1,314                  |  | 1,523            
|                                         | Federal Home Loan Bank advances                                                                                                                                                                                                                                                                     |  | 187,495                |  | 216,495          
|                                         | Other liabilities                                                                                                                                                                                                                                                                                   |  | 13,324                 |  | 12,069           
|                                         | Total liabilities                                                                                                                                                                                                                                                                                   |  | 696,536                |  | 700,130          
|                                         |                                                                                                                                                                                                                                                                                                     |  |                        |  |                  
|                                         | **STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                            |  |                        |  |                  
|                                         | Preferred stock, $.01 par value; 5,000,000 authorized; none
       issued                                                                                                                                                                                                                           |  | ---                    |  | ---              
|                                         | Common stock, $.01 par value; 15,000,000 shares authorized;
       6,702,465 and 6,632,814 shares issued as of September 30, 2003
       and December 31, 2002, respectively; 4,536,191 and 4,833,407
       shares outstanding as of September 30, 2003 and December 31,
       2002, respectively |  | 67                     |  | 66               
|                                         | Additional paid-in capital                                                                                                                                                                                                                                                                          |  | 66,461                 |  | 64,518           
|                                         | Retained earnings                                                                                                                                                                                                                                                                                   |  | 50,933                 |  | 47,855           
|                                         | Accumulated other comprehensive income, net                                                                                                                                                                                                                                                         |  | (455)                  |  | 585              
|                                         | Unallocated ESOP common stock                                                                                                                                                                                                                                                                       |  | (3,441)                |  | (4,069)          
|                                         | Unearned RRP common stock                                                                                                                                                                                                                                                                           |  | (1,132)                |  | (1,488)          
|                                         |                                                                                                                                                                                                                                                                                                     |  | 112,433                |  | 107,467          
|                                         | Treasury stock (2,166,274 and 1,799,407 shares at September 30,
       2003 and December 31, 2002, respectively)                                                                                                                                                                                    |  | (37,215)               |  | (26,359)         
|                                         | Total stockholders' equity                                                                                                                                                                                                                                                                          |  | 75,218                 |  | 81,108           
|                                         | Total liabilities and stockholders' equity                                                                                                                                                                                                                                                          |  | $771,754               |  | $781,238         

**WARWICK COMMUNITY BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)**

|                                                    | For the Three Months
Ended September 30, | For the Nine Months
Ended September 30,
|--------------------------------------------------- | ---------------------------------------- | ---------------------------------------
|                                                   
|                                                    | 2003                                     | 2002                                   
|                                                    | (In thousands, except per share amounts)
|Interest Income:                                    |                                          |                                        
|Interest on loans                                   | $6,346                                   | $  9,902                               
|Interest and dividends on securities                | 2,640                                    | 2,841                                  
|Interest on federal funds sold                      | ---                                      | ---                                    
|Interest on short-term money market instruments     | 56                                       | 12                                     
|Total interest income                               | 9,042                                    | 12,755                                 
|                                                    |                                          |                                        
|Interest Expense:                                   |                                          |                                        
|Time deposits                                       | 609                                      | 842                                    
|Money market deposits                               | 174                                      | 355                                    
|Savings and NOW deposits                            | 618                                      | 1,098                                  
|Mortgagors' escrow deposits                         | 17                                       | 30                                     
|Borrowed funds                                      | 2,654                                    | 3,132                                  
|Total interest expense                              | 4,072                                    | 5,457                                  
|Net interest income                                 | 4,970                                    | 7,298                                  
|                                                    |                                          |                                        
|Provision for Loan Losses                           | ---                                      | (533)                                  
|Net interest income after provision for loan losses | 4,970                                    | 6,765                                  
|                                                    |                                          |                                        
|Non-Interest Income:                                |                                          |                                        
|Service and fee income                              | 1,612                                    | 1,462                                  
|Gain on securities transactions                     | ---                                      | 104                                    
|Net gain on sale of loans                           | 130                                      | 78                                     
|Other income                                        | 221                                      | 196                                    
|Total non-interest income                           | 1,963                                    | 1,840                                  
|                                                    |                                          |                                        
|Non-Interest Expense:                               |                                          |                                        
|Salaries and employee benefits                      | 2,557                                    | 2,448                                  
|FDIC insurance                                      | 24                                       | 20                                     
|Occupancy                                           | 514                                      | 528                                    
|Data processing                                     | 349                                      | 273                                    
|Advertising                                         | 44                                       | 82                                     
|Professional fees                                   | 317                                      | 216                                    
|Other                                               | 756                                      | 803                                    
|Total non-interest expense                          | 4,561                                    | 4,370                                  
|                                                    |                                          |                                        
|Income before provision for income taxes            | 2,372                                    | 4,235                                  
|Provision for Income Taxes                          | 904                                      | 1,633                                  
|Net income                                          | $1,468                                   | $2,602                                 
|                                                    |                                          |                                        
|Weighted Average:                                   |                                          |                                        
|Common shares                                       | 4,243                                    | 4,605                                  
|Dilutive stock options                              | 201                                      | 204                                    
|                                                    | 4,444                                    | 4,809                                  
|Earnings per Share:                                 |                                          |                                        
|Basic                                               | $  0.35                                  | $    0.56                              
|Diluted                                             | $  0.33                                  | $    0.54                              

**WARWICK COMMUNITY BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)**

|                                                                   | Common
Stock   | AdditionalPaid InCapital | RetainedEarnings | Accumulated OtherComprehensiveIncome (Loss), net | UnallocatedCommon StockHeld by ESOP | UnearnedCommon StockHeld by RRP | TreasuryStock | ComprehensiveIncome (Loss)
|------------------------------------------------------------------ | -------------- | ------------------------ | ---------------- | ------------------------------------------------ | ----------------------------------- | ------------------------------- | ------------- | --------------------------
|                                                                   | (In thousands)
|                                                                   |                |                          |                  |                                                  |                                     |                                 |               |                           
|BALANCE, December 31, 2001                                         | $66            | $63,681                  | $39,739          | $(822)                                           | $(4,900)                            | $(2,001)                        | $(21,760)     |                           
|Net Income, January 1, 2002 -
     September 30, 2002              | ---            | ---                      | 7,575            | ---                                              | ---                                 | ---                             | ---           | $7,575                    
|Unrealized appreciation on
     securities available-for-sale, net | ---            | ---                      | ---              | 2,259                                            | ---                                 | ---                             | ---           | 2,259                     
|Comprehensive income(loss)                                         | ---            | ---                      | ---              | ---                                              | ---                                 | ---                             |               | $9,834                    
|Purchase of treasury stock                                         | ---            | ---                      | ---              | ---                                              | ---                                 | ---                             | (1,357)       |                           
|Allocation of ESOP stock                                           | ---            | 425                      | ---              | ---                                              | 621                                 | ---                             | ---           |                           
|Cash dividends paid                                                | ---            | ---                      | (996)            | ---                                              | ---                                 | ---                             | ---           |                           
|Stock option plan.                                                 | ---            | 65                       | ---              | ---                                              | ---                                 | ---                             | ---           |                           
|Earned portion of RRP                                              | ---            | 129                      | ---              | ---                                              | ---                                 | 389                             | ---           |                           
|BALANCE, September 30, 2002                                        | $66            | $64,300                  | $46,318          | $1,437                                           | $(4,279)                            | $(1,612)                        | $(23,117)     |                           
|BALANCE, December 31, 2002                                         | $66            | $64,518                  | $47,855          | $585                                             | $(4,069)                            | $(1,488)                        | $(26,359)     |                           
|Net Income, January 1, 2003 -
     September 30, 2003              | ---            | ---                      | 5,131            | ---                                              | ---                                 | ---                             | ---           | $5,131                    
|Unrealized depreciation on
     securities available-for-sale, net | ---            | ---                      | ---              | (1,040)                                          | ---                                 | ---                             | ---           | (1,040)                   
|Comprehensive income                                               | ---            | ---                      | ---              | ---                                              | ---                                 | ---                             | ---           | $4,091                    
|Purchase of treasury stock                                         | ---            | ---                      | ---              | ---                                              | ---                                 | ---                             | (10,860)      |                           
|Allocation of ESOP stock                                           | ---            | 649                      | ---              | ---                                              | 628                                 | ---                             | ---           |                           
|Cash dividends paid                                                | ---            | ---                      | (2,053)          | ---                                              | ---                                 | ---                             | ---           |                           
|Stock option plan.                                                 | 1              | 1,168                    | ---              | ---                                              | ---                                 | ---                             | 4             |                           
|Earned portion of RRP                                              | ---            | 126                      | ---              | ---                                              | ---                                 | 356                             | ---           |                           
|BALANCE, September 30, 2003                                        | $67            | $66,461                  | $50,933          | $(455)                                           | $(3,441)                            | $(1,132)                        | $(37,215)     |                           



| |                                                                               | For the Nine Months
Ended September 30,
| | ----------------------------------------------------------------------------- | ---------------------------------------
| |                                                                              
| |                                                                               | 2003                                   
| |                                                                               | (In thousands)                         
| | CASH FLOWS FROM OPERATING ACTIVITIES                                          |                                        
| | Net income                                                                    | $     5,131                            
| | Adjustments to reconcile net income to net cash used in operating activities: |                                        
| | Depreciation                                                                  | 626                                    
| | Amortization of intangibles                                                   | 155                                    
| | Amortization (accretion) of discount on investment securities                 | 4,121                                  
| | Net increase in accrued interest receivable                                   | 305                                    
| | Net (increase) decrease in BOLI and other assets                              | 754                                    
| | Provision for loan losses                                                     | 90                                     
| | Net gain on sales of loans                                                    | (397)                                  
| | Net gain on curtailment of the defined benefit pension plan                   | ---                                    
| | Mortgage loans funded                                                         | (61,424)                               
| | Mortgage loans sold                                                           | 63,861                                 
| | Net gain on sales of securities                                               | (352)                                  
| | Net decrease in accrued interest payable                                      | (209)                                  
| | Net increase (decrease) in accrued expenses and other liabilities             | 1,255                                  
| | Total reconciliation adjustments                                              | 8,785                                  
| | Net cash provided by operating activities                                     | 13,916                                 
| | CASH FLOWS FROM INVESTING ACTIVITIES                                          |                                        
| | Proceeds from maturities and calls of securities                              | 4,796                                  
| | Purchases of securities                                                       | (269,563)                              
| | Proceeds from sale of securities available-for-sale                           | 2,280                                  
| | Principal repayments from mortgage-backed securities                          | 148,672                                
| | Redemption of Federal Home Loan Bank capital stock                            | 1,825                                  
| | Purchase of commercial loan portfolio                                         | (3,097)                                
| | Net decrease in loans                                                         | 133,219                                
| | Purchases of fixed assets, net                                                | (861)                                  
| | Net cash provided by ( used in) investing activities                          | 17,271                                 
| | CASH FLOWS FROM FINANCING ACTIVITIES                                          |                                        
| | Net increase in deposits                                                      | 26,728                                 
| | Net (decrease) increase in escrow deposits                                    | (2,368)                                
| | Net decrease in borrowed funds                                                | (29,000)                               
| | Dividends on common stock                                                     | (2,053)                                
| | Purchase of treasury stock                                                    | (10,860)                               
| | Stock options exercised                                                       | 1,173                                  
| | ESOP allocation                                                               | 628                                    
| | Earned portion of RRP.                                                        | 356                                    
| | Net cash used in financing activities                                         | (15,396)                               
| | Net increase (decrease) in cash                                               | 15,791                                 
| | Cash and Cash Equivalents, beginning of year                                  | 59,667                                 
| | Cash and Cash Equivalents, end of period                                      | $  75,458                              
| | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                             |                                        
| | Cash paid during the year for-                                                |                                        
| | Interest on deposits and borrowed funds                                       | $13,840                                
| | Income taxes                                                                  | 4,885                                  

**WARWICK COMMUNITY BANCORP, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**1.          SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). These unaudited condensed consolidated financial statements should be
read in conjunction with the consolidated financial statements and notes thereto included in the December 31, 2002 Annual Report on Form 10-K, filed on March 31, 2003.

**Basis of Presentation**

The accompanying unaudited consolidated financial statements include the accounts of Warwick Community Bancorp, Inc. ("Parent Company"), its savings bank subsidiary, The Warwick Savings Bank
("Warwick Savings"), and its commercial bank subsidiary, The Towne Center Bank ("Towne Center") and its title business subsidiary, Hardenburgh Abstract Company of Orange County, Inc. ("Hardenburgh").
The consolidated financial statements of the Parent Company and its subsidiaries (collectively, the "Company") conform to generally accepted accounting principles and reporting practices followed by
the banking industry. All significant intercompany balances and transactions are eliminated in consolidation.

The unaudited consolidated financial statements included herein reflect all normal recurring adjustments which are, in the opinion of management, necessary to present a fair statement of the
results for the interim periods presented. The results of operations for the nine months ended September 30, 2003 are not necessarily indicative of the results of operations that may be expected for
the entire year ending December 31, 2003.

**Earnings Per Share**

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, adjusted for the unallocated portion of the shares held by
the Warwick Community Bancorp, Inc. Employee Stock Ownership Plan ("ESOP") in accordance with American Institute of Certified Public Accountants ("AICPA") Statement of Position 93-6, "Employers
Accounting for Employee Stock Ownership Plans," and unearned shares held by the Recognition and Retention Plan of Warwick Community Bancorp, Inc. ("RRP"). Diluted earnings per share, which reflects
the potential dilution that could occur if outstanding stock options were exercised and resulted in the issuance of common stock that then shared in the earnings of the Company, is computed by
dividing net income by the weighted average number of common shares and dilutive instruments.

|                                                   | **For the Three Months EndedSeptember 30,** | **For the Nine Months EndedSeptember 30,**
|-------------------------------------------------- | ------------------------------------------- | ------------------------------------------
|                                                   | **2003**                                    | **2002**                                  
|                                                   | (In thousands, except per share amounts)   
|Net income                                         | $1,468                                      | $2,602                                    
|                                                   |                                             |                                           
|Basic weighted-average common shares outstanding   | 4,243                                       | 4,605                                     
|Plus: Dilutive stock options                       | 201                                         | 204                                       
|Diluted weighted-average common shares outstanding | 4,444                                       | 4,809                                     
|                                                   |                                             |                                           
|Net income per common share:                       |                                             |                                           
|Basic                                              | $  0.35                                     | $  0.56                                   
|Diluted                                            | $  0.33                                     | $  0.54                                   

At September 30, 2003, the Company had stock-based employee compensation plans, including a stock option plan. The Company accounts for this stock option plan under the recognition and measurement
principles of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB No. 25"), and related Interpretations. No stock-based employee compensation cost is
reflected in net income, as all options granted under the plan had an exercise price equal to the market value of the underlying common stock on the date of grant. The following table illustrates the
effect on net income and earnings per share if the Company had applied the fair value recognition provisions of Financial Accounting Standards Board ("FASB") Statement of Financial Accounting
Standards ("SFAS") No. 123, "Accounting for Stock-Based Compensation," to stock-based employee compensation.

|                                                                                                                                | **For the ThreeMonths EndedSeptember 30,** | **For the NineMonths EndedSeptember 30,**
|------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | -----------------------------------------
|                                                                                                                                | **2003**                                   | **2002**                                 
|                                                                                                                                | (In thousands, except per share amounts)  
|                                                                                                                                |                                           
|Net income, as reported                                                                                                         | $1,468                                     | $2,602                                   
|Add: Stock-based compensation expenseincluded in reported net income, net ofrelated tax effects                                 | 68                                         | 77                                       
|Deduct: Total stock-based compensationexpense determined under fair
value based method for all awards, net ofrelated tax effect | (234)                                      | (225)                                    
|                                                                                                                                |                                            |                                          
|Pro forma net income                                                                                                            | $1,302                                     | $2,454                                   
|                                                                                                                                |                                            |                                          
|Earnings per share:                                                                                                             |                                            |                                          
|Basic-as reported                                                                                                               | $  0.35                                    | $  0.56                                  
|Basic-pro forma                                                                                                                 | $  0.31                                    | $  0.53                                  
|                                                                                                                                |                                            |                                          
|Diluted- as reported                                                                                                            | $  0.33                                    | $  0.54                                  
|Diluted-pro forma                                                                                                               | $  0.29                                    | $  0.51                                  

There are 406,467 options that are currently exercisable. The fair value of each option was estimated on the date granted using the Black-Scholes option pricing model. The fair value of the
options granted in 2003 and 2002 was estimated to be $10.67 and $7.25, respectively. The following weighted-average assumptions were used for grants in 2003 and 2002: risk free interest rate of 3.23%
and 4.49%; expected dividend yield of 2.0%; expected life of five years; and expected volatility of 45.44% and 28.75%.

**Comprehensive Income**

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by owners and distributions to owners. Other comprehensive income
includes revenues, expenses, gains and losses that, under accounting principles generally accepted in the United States of America, are included in comprehensive income but excluded from net income.
Comprehensive income and accumulated other comprehensive income are reported net of related income taxes. Accumulated other comprehensive income for the Company consists solely of unrealized holding
gains or losses on available for sale securities and an adjustment for the minimum pension liability.

**New Accounting Pronouncements**

In November 2002, the FASB issued FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others" ("FIN

45"). FIN 45 addresses disclosures to be made by a guarantor in its financial statements about its obligations under guarantees. The interpretation also requires the recognition, at estimated fair
value, of a liability by the guarantor at the inception of certain guarantees issued or modified after December 31, 2002. This recognition requirement did not have a material impact on the Company's
consolidated financial statements.

FASB Interpretation No.46, "Consolidation of Variable Interest Entities," was issued in January 2003. The Interpretation provides guidance on the identification of entities controlled through
means other than voting rights. The Interpretation specifies how a business enterprise should evaluate its interests in a variable interest entity to determine whether to consolidate that entity. A
variable interest entity must be consolidated by its primary beneficiary if the entity does not effectively disperse risks among the parties involved. Adoption of this interpretation as of January 1,
2003 did not have a significant effect on the Company's consolidated financial statements.

Statement of Financial Accounting Standards No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities," ("SFAS No. 149") was issued on April 30, 2003. The Statement
amends and clarifies accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities under Statement 133. This Statement is in
effect for contracts entered into or modified after September 30, 2003. The adoption of this Statement is not expected to have a significant effect on the Company's consolidated financial
statements.

Statement of Financial Accounting Standards No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity," ("SFAS No. 150") was issued in May 2003.
SFAS No. 150 requires instruments within its scope to be classified as a liability (or, in some cases, as an asset). SFAS No. 150 is generally effective for financial instruments entered into or
modified after May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June 15, 2003 (i.e. July 1, 2003 for calendar year entities). For financial
instruments created before June 1, 2003 and still existing at the beginning of the interim period of adoption, transition generally should be applied by reporting the cumulative effect of a change in
an accounting principle by initially measuring the financial instruments at fair value or other measurement attributes of the Statement. The adoption of SFAS No. 150 as of July 1, 2003 did not have a
significant effect on the Company's consolidated financial statements.

**2.           Loan Portfolio Composition**

The following table sets forth the composition of the Company's loan portfolio in dollar amounts and percentage of the portfolio at the dates indicated.

|                                        | At September 30, 2003  | At December 31, 2002
|--------------------------------------- | ---------------------- | --------------------
|                                        | Amount                 | Percentof Total     
|                                        | (Dollars in thousands)
|**Real Estate Loans**:                  |                        |                     
|One- to four-family                     | $113,424               | 33.57%              
|One-to four-family held for sale        | 2,823                  | 0.84                
|One-to four-family construction         | ---                    | ---                 
|Multi family and commercial real estate | 150,951                | 44.68               
|Construction and development            | 3,595                  | 1.06                
|Total real estate loans                 | 270,793                | 80.15               
|Commercial business loans               | 23,182                 | 6.86                
|**Consumer loans:**                     |                        |                     
|Automobile                              | 18,695                 | 5.53                
|Home equity                             | 24,012                 | 7.11                
|Other consumer loans                    | 1,195                  | 0.35                
|Total consumer loans                    | 43,902                 | 12.99               
|Total loans                             | 337,877                | 100.00%             
|Premiums and deferred loan costs, net   | 780                    |                     
|Allowance for loan losses               | (4,922)                |                     
|Total loans, net                        | $333,735               |                     

**3.          Non-Performing Assets**

The following table sets forth information regarding non-accrual loans, other past due loans and other real estate owned at the dates indicated.

|                                            | September 30,2003      |  | December 31,2002
|------------------------------------------- | ---------------------- |  | ----------------
|                                            | (Dollars in thousands)
|Non-accrual loans:                          |                        |  |                 
|One- to four-family                         | $2,578                 |  | $1,279          
|Multi family and commercial real estate     | ---                    |  | 422             
|Commercial business loans                   | ---                    |  | 84              
|Consumer loans                              | 29                     |  | ---             
|Total non-accrual loans                     | 2,607                  |  | 1,785           
|Accruing loans delinquent 90 days or more:  |                        |  |                 
|Multi-family and commercial real estate     | ---                    |  | 114             
|Commercial business loans                   | ---                    |  | 141             
|Total                                       | ---                    |  | 255             
|Total non-performing loans                  | 2,607                  |  | 2,040           
|Foreclosed real estate:                     |                        |  |                 
|One- to four-family                         | 99                     |  | 209             
|Multi family and commercial real estate     | ---                    |  | 936             
|Total                                       | 99                     |  | 1,145           
|Total non-performing assets                 | $2,706                 |  | $3,185          
|Non-performing loans to total loans         | 0.77%                  |  | 0.44%           
|Total non-performing assets to total assets | 0.35%                  |  | 0.41%           

The following table sets forth the activity in the Company's allowance for loan losses at and for the periods indicated.

|                                                                       | Nine Months EndedSeptember 30, | Year EndedDecember 31,
|---------------------------------------------------------------------- | ------------------------------ | ----------------------
|                                                                       | 2003                           | 2002                  
|                                                                       | (Dollars in thousands)        
|**Allowance for loan losses:**                                         |                                |                       
|Balance at beginning of period                                         | $4,932                         | $3,650                
|**Charge-offs**:                                                       |                                |                       
|Commercial business                                                    | 111                            | ---                   
|Consumer loans                                                         | 18                             | 38                    
|Total charge-offs                                                      | 129                            | 38                    
|**Recoveries**:                                                        |                                |                       
|Commercial business                                                    | 7                              | ---                   
|Consumer loans                                                         | 22                             | 22                    
|Total recoveries                                                       | 29                             | 22                    
|                                                                       |                                |                       
|Provision for loan losses                                              | 90                             | 988                   
|Balance at end of Period                                               | $4,922                         | $4,622                
|                                                                       |                                |                       
|Ratio of net charge-offs during the period toaverage loans outstanding | 0.02%                          | ---                   
|Ratio of allowance for loan losses to total loansat end of period      | 1.46%                          | 0.88%                 
|Ratio of allowance for loan losses to non-performing loans             | 188.80%                        | 194.85%               

**General**

Warwick Community Bancorp, Inc. is a bank holding company incorporated in September 1997 under the laws of the State of Delaware and is registered under the Bank Holding Company Act of 1956, as
amended ("BHCA"). The Parent Company elected to become a financial holding company under the BHCA in October 2000. The primary business of the Parent Company is the operation of its wholly owned
subsidiaries, Warwick Savings, Towne Center and Hardenburgh, its title insurance agency subsidiary. Presently, the only significant assets of the Parent Company are the capital stock of Warwick
Savings, Towne Center and Hardenburgh, the note evidencing the loan the Parent Company made to the ESOP to allow the ESOP to purchase 8% of the Parent Company's common stock issued in the Parent
Company's initial public offering, and the investments acquired with the net proceeds of the offering retained by the Parent Company. While the following discussion of financial condition and results
of operations includes the collective results of the Parent Company and its subsidiaries, this discussion reflects primarily Warwick Savings' activities. Unless otherwise disclosed, the information
presented herein reflects the financial condition and results of operations of the Parent Company and its subsidiaries on a consolidated basis, and as used herein the term "Company" refers to the
Parent Company and its subsidiaries collectively.

**Critical Accounting Policies and Estimates**

"Management's Discussion and Analysis of Financial Condition and Results of Operation" is based upon the Company's consolidated financial statements which have been prepared in accordance with
accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses. Note 1 of the Company's Audited Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended
December 31, 2002, and filed with the SEC, contains a summary of the Company's significant accounting policies. Management believes the Company's policy with respect to the methodology for the
determination of the allowance for loan losses involves a high degree of complexity and requires management to make difficult and subjective judgments which often require assumptions or estimates
about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact results of operations. This critical policy and its application is periodically reviewed
with the Board of Directors.

The allowance for loan losses is based upon management's evaluation of the adequacy of the allowance, including an assessment of known and inherent risks in the
portfolio, giving consideration to the size and composition of the loan portfolio, actual loan loss experience, level of delinquencies, detailed analysis of individual loans for which full
collectibility may not be assured, the existence and estimated net realizable value of any underlying collateral and guarantees securing the loans, and current economic and market conditions.
Although management uses the best information available, the level of the allowance for loan losses remains an estimate which is subject to significant judgment and short-term change. Various
regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses. Such agencies may require the Company to make additional provisions
for loan losses based upon information available to them at the time of their examination. Furthermore, the majority of the Company's loans are secured by real estate in the states of New York and
New Jersey. Accordingly, the collectibility of a substantial portion of the carrying value of the Company's loan portfolio is susceptible to changes in local market conditions and may be
adversely affected should real estate values decline or the New York and New Jersey areas experience adverse economic shock. Further adjustments to the allowance for loan losses may be necessary due
to economic, operating, regulatory and other conditions beyond the Company's control.

**Financial Condition**

For the nine-month period ended September 30, 2003, total assets of the Company decreased $9.5 million from $781.2 million at December 31, 2002 to $771.8 million at September 30, 2003. This
decrease in total assets was primarily attributable to a $130.5 million, or 27.8%, decrease in total loans, in particular, a $121.9 million decrease in one-to four- family real estate loans resulting
from very high loan prepayments. Partially offsetting this decrease was the $108.1 million, or 51.1% increase in total securities. The increase in the Company's securities portfolio was the result of
the reinvestment of the significant cash flows from loan prepayments primarily into shorter duration investment securities rather than long-term fixed-rate residential loans and securities.

Deposits increased $26.7 million, or 5.7%, from $466.7 million at December 31, 2002 to $493.4 million at September 30, 2003. The Company remains a deposit-driven financial institution with
emphasis on core deposit accumulation and retention as a basis for sound growth and profitability. The Company believes its record of sustaining core deposit growth is reflective of the Company's
retail approach to banking which emphasizes convenient branch locations, extended hours of operation, quality service and active marketing.

Borrowed funds, comprised primarily of advances from the FHLBNY, decreased $29.0 million, to $187.5 million at September 30, 2003 from $216.5 million at December 31, 2002. The decrease in
borrowings was funded primarily with proceeds received from loan prepayments and from increased deposits as discussed above.

Total stockholders' equity decreased by $5.9 million, or 7.3%, from $81.1 million at December 31, 2002 to $75.2 million at September 30, 2003. The decrease in total stockholders' equity was
primarily attributable to the repurchases of 366,867 shares of the Company's outstanding common stock during the first nine months of 2003 at a total cost of $10.8 million. Also contributing to the
decrease in stockholders' equity were the payments of quarterly cash dividends to shareholders amounting to $2.1 million, which dividends were paid on February 14, 2003, May 9, 2003 and August 8,
2003. On October 22, 2003, the Company declared a dividend on its common stock of $0.15 per share of common stock. The dividend was paid on November 12, 2003 to stockholders of record on November 1,
2003. The decrease in stockholders' equity was partially offset by net income of $5.1 million for the nine months ended September 30, 2003 and the exercise of 69,651 stock options over that same time
period, which increased stockholders' equity by $1.2 million.

**Analysis of Net Interest Income**

Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the volume of interest-earning
assets and interest-bearing liabilities and the interest rates earned or paid on them.

*Average Balance Sheets*. The following table shows average balances, interest earned or paid, and average interest rates for the periods indicated. Such yields and costs were derived by
dividing interest income or expense by the average balance of assets or liabilities, respectively, for the periods shown. The yields include deferred fees and discounts, which are considered yield
adjustments. Average balances were computed based on month-end balances. Average balances on available-for-sale securities are computed on fair value. Management believes the use of average monthly
balances instead of average daily balances does not have a material effect on the information presented.

|                                                                 |                                                    | Three Months Ended September 30,
|---------------------------------------------------------------- | -------------------------------------------------- | --------------------------------
|                                                                 |                                                    | 2003                            
|                                                                 |                                                    | AverageBalance                  
|Assets:                                                          | (Dollars in thousands)                            
|Interest-earning assets:                                         |                                                    |                                 
|                                                                 | One-to four-family loans, net                      | $138,419                        
|                                                                 | Multi family and commercial real estate loans, net | 157,267                         
|                                                                 | Commercial business loans, net                     | 24,502                          
|                                                                 | Consumer loans, net                                | 45,007                          
|                                                                 | Mortgage-backed securities                         | 154,837                         
|                                                                 | Collateralized mortgage obligations                | 131,302                         
|                                                                 | Interest earning accounts at banks                 | 25,439                          
|                                                                 | Investment securities                              | 70,538                          
|                                                                 | Total interest-earning assets                      | 747,311                         
|                                                                 | Non-interest earning assets                        | 45,115                          
|                                                                 | Total assets                                       | $792,426                        
|Liabilities and stockholders' equity:                            |                                                    |                                 
|Interest-bearing liabilities:                                    |                                                    |                                 
|                                                                 | Savings and NOW deposits                           | $252,723                        
|                                                                 | Mortgagor's escrow deposits                        | 3,535                           
|                                                                 | Money market accounts                              | 71,995                          
|                                                                 | Time deposits                                      | 105,210                         
|                                                                 | Total deposits                                     | 433,463                         
|                                                                 | Borrowed funds                                     | 203,570                         
|                                                                 | Total interest-bearing liabilities                 | 637,033                         
|Non-interest bearing liabilities                                 | 81,754                                             |                                 
|                                                                 | Total liabilities                                  | 718,787                         
|Stockholders' equity                                             | 73,639                                             |                                 
|                                                                 | Total liabilities and stockholders'equity          | $792,426                        
|Net interest income/interest rate spread                         |                                                    |                                 
|Net interest-earning assets/netinterest margin                   | $110,278                                           |                                 
|                                                                 |                                                    |                                 
|Ratio of interest-earning assets to
interest-bearing liabilities |                                                    |                                 

---

|                                                                    |                                                   | Nine Months Ended September 30,
|------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------
|                                                                    |                                                   | 2003                           
|                                                                    |                                                   | AverageBalance                 
|Assets:                                                             | (Dollars in thousands)                           
|Interest-earning assets:                                            |                                                   |                                
|                                                                    | One-to four-family loans, net                     | $179,712                       
|                                                                    | Multi family and commercial real estateloans, net | 154,922                        
|                                                                    | Commercial business loans, net                    | 27,056                         
|                                                                    | Consumer loans, net                               | 47,008                         
|                                                                    | Mortgage-backed securities                        | 168,093                        
|                                                                    | Collateralized mortgage obligations               | 83,187                         
|                                                                    | Federal funds sold                                | ---                            
|                                                                    | Interest earning accounts at banks                | 31,534                         
|                                                                    | Investment securities                             | 65,935                         
|                                                                    | Total interest-earning assets                     | 757,447                        
|                                                                    | Non-interest earning assets                       | 44,355                         
|                                                                    | Total assets                                      | $801,802                       
|Liabilities and stockholders' equity:                               |                                                   |                                
|Interest-bearing liabilities:                                       |                                                   |                                
|                                                                    | Savings and NOW deposits                          | $245,377                       
|                                                                    | Mortgagor's escrow deposits                       | 3,111                          
|                                                                    | Money market deposits                             | 79,107                         
|                                                                    | Time deposits                                     | 109,122                        
|                                                                    | Total deposits                                    | 436,717                        
|                                                                    | Borrowed funds                                    | 211,058                        
|                                                                    | Total interest-bearing liabilities                | 647,775                        
|Non-interest bearing liabilities                                    | 77,361                                            |                                
|                                                                    | Total liabilities                                 | 725,136                        
|Stockholders' equity                                                | 76,666                                            |                                
|                                                                    | Total liabilities and stockholders'equity         | $801,802                       
|Net interest income/interest rate spread                            |                                                   | $16,249                        
|Net interest-earning assets/net
   interest margin                  | $109,672                                          |                                
|                                                                    |                                                   |                                
|Ratio of interest-earning assets to
   interest-bearing liabilities |                                                   |                                

---

*Rate/Volume Analysis*. The following table presents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have
affected the Company's interest income and interest expense during the periods indicated. Information is provided in each category with respect to (i) changes attributable to changes in volume
(changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume) and (iii) the net change. The changes attributable to the
combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate.

|                                                     | Three Months Ended
September 30, 2003
Compared to
Three Months Ended
September 30, 2002 | Nine Months Ended
September 30, 2003
Compared to
Nine Months Ended
September 30, 2002
|---------------------------------------------------- | --------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------
|Increase (Decrease) in NetInterest Income Due to     |                                                                                         | Increase (Decrease) in NetInterest Income Due to                                     
|Volume                                               | Rate                                                                                    | Net                                                                                  
|(In thousands)                                       | (In thousands)                                                                         
|Interest-earning assets:                             |                                                                                         |                                                                                      
|One-to four-family loans, net                        | $(2,871)                                                                                | $    (112)                                                                           
|Multi family and commercial real   estate loans, net | 36                                                                                      | (100)                                                                                
|Commercial business loans, net                       | (98)                                                                                    | (58)                                                                                 
|Consumer loans, net                                  | (283)                                                                                   | (70)                                                                                 
|Mortgage-backed securities                           | 1,089                                                                                   | (1,415)                                                                              
|Collateralized mortgage obligations                  | 1,330                                                                                   | (926)                                                                                
|Federal funds sold                                   | ---                                                                                     | ---                                                                                  
|Interest earning accounts at banks                   | 92                                                                                      | (48)                                                                                 
|Investment securities                                | (180)                                                                                   | (99)                                                                                 
|Total                                                | (884)                                                                                   | (2,829)                                                                              
|                                                     |                                                                                         |                                                                                      
|Interest-bearing liabilities:                        |                                                                                         |                                                                                      
|Savings and NOW deposits                             | 283                                                                                     | (763)                                                                                
|Mortgagor's escrow deposits                          | (11)                                                                                    | (2)                                                                                  
|Money market deposits                                | (18)                                                                                    | (163)                                                                                
|Time deposit                                         | (53)                                                                                    | (180)                                                                                
|Borrowed funds                                       | (510)                                                                                   | 32                                                                                   
|Total                                                | (309)                                                                                   | (1,076)                                                                              
|Net change in net interest income                    | $   (575)                                                                               | $(1,753)                                                                             

**Comparison of Operating Results for the Three Months Ended September 30, 2003 and 2002**

*General*. For the three months ended September 30, 2003, the Company recognized net income of $1.5 million, or $0.33 per diluted share, as compared to net income of $2.6 million, or $0.54
per diluted share, for the three months ended September 30, 2002, which represents a $1.1 million, or 43.6%, decrease. For the third quarter ended September 30, 2003, annualized return on average
assets ("ROAA") and annualized return on average equity ("ROAE") were 0.74% and 7.97%, respectively. The ROAA and ROAE for the corresponding quarter of 2002 were 1.32% and 12.67%, respectively.

*Interest Income*. Interest income amounted to $9.0 million for the three months ended September 30, 2003, as compared to $12.7 million for the three months ended September 30, 2002. This
decrease of $3.7 million, or 29.1%, reflects the impact of the Federal Reserve Bank's interest rate reductions, which led to a significant increase in one-to four-family mortgage loan and
mortgage-backed securities prepayments that were reinvested at lower yields. The Company chose to reinvest these funds primarily in agency mortgage-backed securities and agency collateralized
mortgage obligations at relatively lower yields rather than in long-term fixed-rate residential mortgages in order to manage its exposure to rising rates. Interest income earned by the Company's
mortgage-backed securities portfolio was also lower because of increased amortization of those securities' purchase premiums that was attributable to the increased prepayment levels discussed
earlier. The Company's interest income is expected to be adversely affected in the fourth quarter by the suspension of dividends paid on the Company's Federal Home Loan Bank of New York capital
stock. The dividend paid on that stock for the quarter ended September 30, 2003 amounted to $135,000.

*Interest Expense*. Total interest expense for the three-month period ended September 30, 2003 decreased from $5.5 million to $4.1 million, a decrease of $1.4 million, or 25.4%, as compared
to the same three-month period one year earlier. The average rate paid on interest-bearing liabilities declined 86 basis points to 2.56% for the three-month period ended September 30, 2003 as
compared to 3.42% for the comparable period in 2002. The decrease in the average rate paid resulted both from a shift in the deposit mix from relatively higher cost
certificates of deposit toward relatively lower cost transaction accounts and a reduction in the rate paid on deposits and borrowings.

*Net Interest Income*. Net interest income for the three months ended September 30, 2003 decreased $2.3 million, or 31.9%, to $5.0 million compared to $7.3 million for the three months
ended September 30, 2002, primarily as a result of the decrease in the average balance of one-to four-family mortgage loans coupled with a decrease of 197 basis points in the average yield earned on
total interest earning assets. These decreases were only partially offset by the decrease in the cost of interest bearing liabilities. Interest rate spread decreased to 2.28% from 3.39%, and the net
interest margin was 2.66% and 3.90%, respectively, for the three-month periods ended September 30, 2003 and 2002.

*Provision for Loan Losses*. The provision for loan losses for the three months ended September 30, 2003 decreased $533,000 compared to the three months ended September 30, 2002. The
decrease in the provision was a result of the decline in total loans, as well as management's assessment of the loan portfolio and its assessment of the local economy and market conditions and the
adequacy of the allowance for loan losses.

*Non-Interest Income*. Non-interest income, net, increased $123,000 to $2.0 million for the three months ended September 30, 2003, from $1.8 million for the three months ended September 30,
2002. During the third quarter of 2003, service and fee income increased 10.3% to $1.6 million, which resulted primarily from increased fees from the Company's title insurance company and from
increased fees attributable to sales and services provided to a growing customer base.

*Non-Interest Expense*. Non-interest expense totaled $4.6 million for the three month period ended September 30, 2003 as compared to $4.4 million for the same period in 2002. This reflects
the Company's continued focus on expense containment while pursing its branch expansion efforts. Salaries and employee benefits expense increased $109,000 for the three months ended September 30,
2003 as compared to the three months ended September 30, 2002 due primarily to increased compensation expense attributable to the opening of the Company's seventh full-service Warwick Savings' branch
in Goshen, New York in June of this year. Reduced pension costs that resulted from the curtailment of the Company's defined benefit pension plan only partially offset the increase in salary expense.
Professional fees increased $101,000 for the three months ended September 30, 2003 as compared to the same period in 2002 primarily as a result of additional cost associated with our title insurance
company.

*Provision for Income Taxes*. The $729,000 decrease in the provision for income taxes for the three-month period ended September 30, 2003, as compared to the three-month period ended
September 30, 2002, was primarily attributable to the 44.0% decrease in pre-tax income. The applicable tax rates for the third quarter of 2003 and 2002 were 38.11% and 38.56%, respectively.

**Comparison of Operating Results for the Nine Months Ended September 30, 2003 and 2002**

*General*. For the nine months ended September 30, 2003, the Company recognized net income of $5.1 million, or $1.13 per diluted share, as compared to net income of $7.6 million, or $1.59
per diluted share, for the nine months ended September 30, 2002, which represents a $2.5 million, or 32.3%, decrease. For the nine months ended September 30, 2003, annualized return on average assets
("ROAA") and annualized return on average equity ("ROAE") were 0.85% and 8.92%, respectively. The ROAA and ROAE for the corresponding period of 2002 were 1.28% and 12.80%, respectively.

*Interest Income*. Interest income amounted to $29.9 million for the nine months ended September 30, 2003, as compared to $38.1 million for the nine months ended September 30, 2002. This
decrease of $8.2 million, or 21.5%, reflects the impact of the Federal Reserve Bank's interest rate reductions which led to a significant increase in one-to four-family mortgage loans and
mortgage-backed securities prepayments that were reinvested at lower yields. The Company chose to reinvest these funds primarily in agency mortgage-backed securities and agency collateralized
mortgage obligations at relatively lower yields rather than in long-term fixed-rate residential mortgages in order to manage its exposure to rising rates. Interest income earned by the Company's
mortgage-backed securities portfolio was also lower because of increased amortization of those securities' purchase premiums that was attributable to the increased prepayment levels discussed
earlier.

*Interest Expense*. Total interest expense for the nine-month period ended September 30, 2003 decreased from $16.7 million to $13.6 million, a decrease of $3.1 million, or 18.3%, as compared to the
same nine-month period one year earlier. The average rate paid on interest-bearing liabilities declined 65 basis points to 2.81% for the nine-month period ended September 30, 2003 as compared to
3.46% for the comparable period in 2002. The decrease in the average rate paid resulted both from a shift in the deposit mix from relatively higher cost certificates of
deposit toward relatively lower cost transaction accounts and a reduction in the rate paid on deposits and borrowings.

*Net Interest Income*. Net interest income for the nine months ended September 30, 2003 decreased $5.1 million, or 24.0%, to $16.2 million compared to the nine months ended September 30,
2002, primarily as a result of the $134.2 million decrease in the average balance of one-to four-family mortgage loans coupled with a decrease of 153 basis points in the average yield earned on total
interest earning assets and was only partially offset by the decrease in the cost of interest bearing liabilities. Interest rate spread decreased to 2.45% from 3.33%, and the net interest margin was
2.86% and 3.82%, respectively, for the nine-month periods ended September 30, 2003 and 2002.

*Provision for Loan Losses*. The provision for loan losses for the nine months ended September 30, 2003 decreased $898,000, or 90.9%, to $90,000 compared to the nine months ended September
30, 2002. The decrease in the provision was a result of the decrease in the loan portfolio, as well as management's assessment of the loan portfolio, the local economy and market conditions and the
adequacy of the allowance for loan losses.

*Non-Interest Income*. Non-interest income, net, for the nine months ended September 30, 2003 and 2002 totaled $5.7 million and $5.9 million, respectively. The nine months ended September
30, 2002 included an $817,000 one-time gain recorded in other income as a result of the Company's curtailment of its defined benefit pension plan in 2002. Service and fee income increased for the
nine months ended September 30, 2003

primarily as a result of increased fees from the Company's title insurance company and from increased fees attributable to sales and services provided to a
growing customer base.

*Non-Interest Expense*. Non-interest expense for the nine months ended September 30, 2003 remained relatively flat when compared to the same period in 2002, reflecting the Company's
continued focus on expense containment. Salaries and employee benefits expense decreased $170,000 for the nine months ended September 30, 2003 as compared to nine months ended September 30, 2002.
Data processing expense increased for the nine months ended September 30, 2003 as compared to September 30, 2002 from the increase in core deposits serviced and costs incurred with the pending
upgrade of Towne Center Bank's computer platform.

*Provision for Income Taxes*. The decrease in the provision for income taxes to $3.1 million for the nine-month period ended September 30, 2003, as compared to the nine-month period ended
September 30, 2002, was primarily attributable to the 34.4% decrease in pre-tax income. The applicable tax rates for the nine months of 2003 and 2002 were 37.79% and 39.72%, respectively. The lower
marginal tax rate resulted primarily from an increase in tax exempt income as a percentage of total income during 2003 as compared to 2002.

**Liquidity and Capital Resources**

An important component of the Company's asset/liability structure is the level of liquidity available to meet the needs of its customers. The Company's Board of Directors has established general
guidelines for the maintenance of prudent levels of liquidity. The Company's Asset/Liability Management Committee continually monitors the amount and source of available liquidity.

Liquidity is managed using a combination of customer deposits, cash and short-term interest-earning assets, mortgage loans held for sale, investment securities held as available for sale and
borrowings from the FHLBNY.

At September 30, 2003, the Company's total approved loan commitments outstanding totaled $62.5 million. Certificates of deposit scheduled to mature in one year or less at September 30, 2003
totaled $82.4 million. Based on historical experience, management believes that a significant portion of such deposits will remain with the Company.

At September 30, 2003, the Company had cash and due from banks of $75.5 million and securities available for sale of $316.1 million. Management believes these amounts, together with the Company's
borrowing capabilities, to be more than adequate to meet its short-term cash needs.

**Regulatory Capital Position**

The Company's primary regulator, the Federal Reserve Board (the "Federal Reserve") which regulates bank holding companies, has issued guidelines classifying and defining bank holding company
capital into the following components: (1) Tier I capital, which includes tangible stockholders' equity for common stock and certain perpetual preferred stock, and (2) Tier II capital, which includes
a portion of the allowance for loan losses and preferred stock that does not qualify as Tier I capital. The risk-based capital guidelines require financial institution holding companies to maintain
specific defined credit risk factors (risk-adjusted assets). As of September 30, 2003, the minimum Tier I and combined Tier I and Tier II capital ratios required by the Federal Reserve for capital
adequacy were 4% and 8%, respectively.

Warwick Savings and Towne Center are subject to minimum regulatory capital requirements imposed by the Federal Deposit Insurance Corporation ("FDIC"), which requirements are, as a general matter,
based on the amount and composition of an institution's assets. Insured institutions in the strongest financial and managerial condition, with a rating of 1 (the highest examination rating of the
FDIC under the Uniform

Financial Institutions Rating System) are required to maintain Tier 1 capital of not less than 3.0% of total assets (the "leverage capital ratio"). For all other banks, the
minimum leverage capital ratio is 4.0%, unless a higher leverage capital ratio is warranted by the particular circumstances or risk profile of the institution.

The following table shows Warwick Savings' regulatory capital positions and ratios at September 30, 2003.

|                                            | Actual  | For Capital AdequacyPurposes | To Be WellCapitalized UnderPrompt CorrectiveAction Provisions
|------------------------------------------- | ------- | ---------------------------- | -------------------------------------------------------------
|                                            | Amount  | Percent                      | Amount                                                       
|Total Capital
   (to risk-weighted assets)  | $62,084 | 17.20%                       | $28,869                                                      
|Tier 1 Capital
   (to risk-weighted assets) | 57,502  | 15.93                        | 14,435                                                       
|Tier 1 Capital
   (to average assets)       | 57,502  | 7.70                         | 29,875                                                       

The following table shows the Parent Company's regulatory capital positions and ratios as of September 30, 2003.

|                                            | Actual Capital | For Capital AdequacyPurposes | To Be WellCapitalized
|------------------------------------------- | -------------- | ---------------------------- | ---------------------
|                                            | Amount         | Percent                      | Amount               
|Total Capital
   (to risk-weighted assets)  | $78,309        | 19.79%                       | $31,658              
|Tier 1 Capital
   (to risk-weighted assets) | 73,255         | 18.51                        | 15,829               
|Tier 1 Capital
   (to average assets)       | 73,255         | 9.27                         | 31,599               

**Item 3.  Quantitative And Qualitative Disclosures About Market Risk**

Quantitative and qualitative disclosure about market risk is presented at December 31, 2002 in the Company's Annual Report on Form 10-K, which was filed with the SEC on March 31, 2003. There have
been no material changes in the Company's market risk at September 30, 2003 as compared to December 31, 2002. The Company's most significant form of market risk is interest rate risk, as the majority
of its assets and liabilities are sensitive to changes in interest rates. As noted in Item 2, Management's Discussion and Analysis, the decrease in the Company's net interest income is due, in part,
to the relative changes in yield and cost of the Company's assets and liabilities as a result of the decreasing market interest rates in 2002 and into 2003. Should market interest rates increase, the
cost of interest-bearing liabilities may increase faster than the rates on interest-earning assets. Conversely, should market interest rates fall significantly below current levels, the Company's net
interest margin may also be negatively impacted. Market risk is reviewed quarterly by the Company's Asset Liability Committee.

**Item 4.  Controls and Procedures**

An evaluation of the Company's disclosure controls and procedures (as defined in Rule13a-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act")) as of September 30, 2003, was carried
out under the supervision and with the participation of the Company's Chief Executive Officer, Chief Financial Officer and several other members of the Company's senior management. The Company's
Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures as currently in effect are effective in ensuring that the information required to
be disclosed by the Company in the reports it files or submits under the Exchange Act is (i) accumulated and communicated to the Company's management (including the Chief Executive Officer and Chief
Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. There have been no changes in our internal
controls over financial reporting (as defined in Rule 13a-15(f) of the Act) that occurred during the quarter ended September 30, 2003, that have materially effected, or are reasonably likely to
materially affect, our internal control over financial reporting.

The Company intends to continually review and evaluate the design and effectiveness of its disclosure controls and procedures and to improve its controls and procedures over time and to correct
any deficiencies that it may discover in the future. The goal is to ensure that senior management has timely access to all material financial and non-financial information concerning the Company's
business. While the Company believes the present design of its disclosure controls and procedures is effective to achieve its goal, future events affecting its business may cause the Company to
modify its disclosure controls and procedures.

**PART II - OTHER INFORMATION**

|**Item 1.** | **Legal Proceedings**                                                                                                                                                                                                                                                 
|----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|           
|            | The Company is involved in legal proceedings incurred in the normal course of business. In the opinion of management, none of these proceedings are expected to have a material effect
on the consolidated financial position or results of operations of the Company.
|           
|**Item 2.** | **Changes in Securities**                                                                                                                                                                                                                                             
|           
|            | Not applicable.                                                                                                                                                                                                                                                       
|           
|**Item 3.** | **Defaults upon Senior Securities**                                                                                                                                                                                                                                   
|           
|            | Not applicable.                                                                                                                                                                                                                                                       
|           
|**Item 4.** | **Submission of Matters to a Vote of Security Holders**                                                                                                                                                                                                               
|           
|            | Not applicable.                                                                                                                                                                                                                                                       
|            |                                                                                                                                                                                                                                                                       
|**Item 5.** | **Other Information**                                                                                                                                                                                                                                                 
|           
|            | Not applicable.                                                                                                                                                                                                                                                       
|           
|**Item 6.** | **Exhibits and Reports on Form 8-K**                                                                                                                                                                                                                                  
|           
|            | (a)                                                                                                                                                                                                                                                                   
|           
|            | See Index to Exhibits.                                                                                                                                                                                                                                                

| | (b)                                                                                                                                                                                          | Reports on Form 8-K
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------
|
| | On July 25, 2003, the Company filed a Form 8-K, dated July 25, 2003, with the SEC of the Company's earnings release for the quarterly period June 30, 2003.                                 
|
| | On July 25, 2003, the Company filed a Form 8-K, dated July 25, 2003, with the SEC stating that its Chairman and CEO will be speaking at an investor conference on July 30, 2003.            
|
| | On September 25th, the Company filed a Form 8-K, dated September 25, 2003 with the SEC that the Company had been advised of the suspension of dividends by the Federal Home
Loan Bank of NY.

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.

|                        | **Warwick Community Bancorp, Inc.**(Registrant)
|----------------------- | -----------------------------------------------
|Date: November 14, 2003 | By:                                            
|Date: November 14, 2003 | By:                                            

|ExhibitNumber | Document                                                                                                                                                                                                       
|------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|              |                                                                                                                                                                                                                
|3.1           | Certificate of Incorporation of Warwick Community Bancorp, Inc. (11)                                                                                                                                           
|              |                                                                                                                                                                                                                
|3.2           | Bylaws of Warwick Community Bancorp, Inc., as amended (11)                                                                                                                                                     
|              |                                                                                                                                                                                                                
|4.1           | Certificate of Incorporation of Warwick Community Bancorp, Inc. (11)                                                                                                                                           
|              |                                                                                                                                                                                                                
|4.2           | Bylaws of Warwick Community Bancorp, Inc., as amended (11)                                                                                                                                                     
|              |                                                                                                                                                                                                                
|4.3           | Form of Stock Certificate of Warwick Community Bancorp, Inc. (1)                                                                                                                                               
|              |                                                                                                                                                                                                                
|4.4           | Rights Agreement between Warwick Community Bancorp, Inc. and Registrar and Transfer Company, dated as of October 17, 2000, as amended by Amendment No. One to the rights Agreement dated September
17, 2002 (6)
|              |                                                                                                                                                                                                                
|4.5           | Form of Right Certificate (7)                                                                                                                                                                                  
|              |                                                                                                                                                                                                                
|4.6           | Certificate of Designations, Preferences and Rights of Series A Junior Participating Preferred Stock of Warwick Community Bancorp, Inc. (7)                                                                    
|              |                                                                                                                                                                                                                
|10.1          | Employment Agreement by and between Warwick Community Bancorp, Inc. and Fred G. Kowal (8)                                                                                                                      
|              |                                                                                                                                                                                                                
|10.2          | Amendment No. 1 to the Employment Agreement by and between Warwick Community Bancorp, Inc. and Fred G. Kowal (10)                                                                                              
|              |                                                                                                                                                                                                                
|10.3          | Employment Agreement by and between Warwick Community Bancorp, Inc. and Ronald J. Gentile (2)                                                                                                                  
|              |                                                                                                                                                                                                                
|10.4          | First Amendment to Employment Agreement by and between Warwick Community Bancorp, Inc. and Ronald J. Gentile (4)                                                                                               
|              |                                                                                                                                                                                                                
|10.5          | Employment Agreement by and between Warwick Community Bancorp, Inc. and Arthur W. Budich (2)                                                                                                                   
|              |                                                                                                                                                                                                                
|10.6          | First Amendment to Employment Agreement by and between Warwick Community Bancorp, Inc. and Arthur W. Budich (4)                                                                                                
|              |                                                                                                                                                                                                                
|10.7          | Recognition and Retention Plan of Warwick Community Bancorp, Inc. (3)                                                                                                                                          
|              |                                                                                                                                                                                                                
|10.8          | First Amendment to the Recognition and Retention Plan of Warwick Community Bancorp, Inc. (5)                                                                                                                   

|10.9  | Second Amendment to the Recognition and Retention Plan of Warwick Community Bancorp, Inc. (8)                                                                                    
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                  
|10.10 | Trust Agreement between Warwick Community Bancorp, Inc. and Orange County Trust Company for the Recognition and Retention Plan of Warwick Community Bancorp, Inc. (2)            
|      |                                                                                                                                                                                  
|10.11 | Stock Option Plan of Warwick Community Bancorp, Inc. (3)                                                                                                                         
|      |                                                                                                                                                                                  
|10.12 | First Amendment to the Stock Option Plan of Warwick Community Bancorp, Inc. (5)                                                                                                  
|      |                                                                                                                                                                                  
|10.13 | Form of Amended Stock Option Agreement for Directors under the Stock Option Plan of Warwick Community Bancorp, Inc (9)                                                           
|      |                                                                                                                                                                                  
|10.14 | Form of Amended Stock Option Agreement for Employees under the Stock Option Plan of Warwick Community Bancorp, Inc.(9)                                                           
|      |                                                                                                                                                                                  
|10.15 | Benefit Restoration Plan of The Warwick Savings Bank (1)                                                                                                                         
|      |                                                                                                                                                                                  
|10.16 | Grantor Trust Agreement by and between The Warwick Savings Bank and HSBC Bank USA for the Benefit Restoration Plan of The Warwick Savings Bank (2)                               
|      |                                                                                                                                                                                  
|10.17 | Change in Control Severance Plan of Warwick Community Bancorp, Inc. and Affiliates (9)                                                                                           
|      |                                                                                                                                                                                  
|11.1  | Statement re: Computation of per share earnings (See the Statement of Income and Note 2 of the Notes to Unaudited Consolidated Financial Statements in this report on Form 10-Q).
|      |                                                                                                                                                                                  
|31.1  | Rule 13a-14(a) Certification of Chief Executive Officer                                                                                                                          
|      |                                                                                                                                                                                  
|31.2  | Rule 13a-14(a) Certification of Chief Financial Officer                                                                                                                          
|      |                                                                                                                                                                                  
|32    | Section 1350 Certifications.                                                                                                                                                     

---

1. Incorporated herein by reference to the Exhibits to the Company's Registration Statement on Form S-1, filed on September 19, 1997, Registration No. 333-36021.
2. Incorporated herein by reference to the Exhibits to the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 1998.
3. Incorporated herein by reference to the Company's definitive Proxy Statement for the Special Meeting of Shareholders held on June 24, 1998.
4. Incorporated herein by reference to the Exhibits to the Company's Annual Report on Form 10-K for the transition period from June 30, 1998 to December 31, 1998.
5. Incorporated herein by reference to the Company's definitive Proxy Statement for the Special Meeting of Shareholders held on April 20, 1999.
6. Incorporated herein by reference to the Exhibits to the Company's Registration Statement on Form 8-A, filed on October 18, 2000.
7. Incorporated herein by reference to the Exhibits to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2000.
8. Incorporated herein by reference to the Exhibits to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001.
9. Incorporated herein by reference to the Exhibits to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2001.
10. Incorporated herein by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002.
11. Incorporated herein by reference to the Exhibits to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2002.