FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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


For quarter ended   September 30, 1996
                    ------------------

Commission file number   0-17839
                         -------


                      Central Jersey Financial Corporation
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          New Jersey                                    22-2977019
   -------------------------------                   -------------------
   (State or other jurisdiction of                   (I.R.S. Employer
   incorporation or organization)                    Identification No.)



          591 Cranbury Road
      East Brunswick, New Jersey                              08816
 ---------------------------------------                    ----------
 (Address of principal executive offices)                   (Zip Code)


                                 (908) 254-6600
               --------------------------------------------------
               Registrant's telephone number, including area code


                                 Not Applicable
               ---------------------------------------------------
               Former name, former address and former fiscal year,
                         if changed since last report.

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


                         APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practical date.

        Common Stock, No Par Value--2,790,686 shares as of October 31, 1996



This Form 10-Q is comprised of a total of 13 pages. 
The exhibit index is located on page 11.


<PAGE>




                             CENTRAL JERSEY FINANCIAL CORPORATION
                                        AND SUBSIDIARY

                                           CONTENTS
                                           --------


                                                                         Page


PART I     FINANCIAL INFORMATION


   Item 1.    Financial Statements:

              Consolidated Statements of Financial Condition as of
              September 30, 1996 and March 31, 1996                       1

              Consolidated Statements of Operations for each
              of the three-month and six-month periods ended
              September 30, 1996 and 1995                                 2

              Consolidated Statements of Cash Flows for each of the
              six-month periods ended September 30, 1996 and 1995         3

              Notes to Consolidated Financial Statements                  4-5

   Item 2.    Management's Discussion and Analysis of Results of
              Operations and Financial Condition                          6-8


PART II    OTHER INFORMATION

   Item 1.    Legal Proceedings                                           9

   Item 2.    Changes In Securities                                       9

   Item 3.    Defaults Upon Senior Securities                             9

   Item 4.    Submission of Matters to a Vote of Security Holders         9

   Item 5.    Other Information                                           9

   Item 6.    Exhibits and Reports on Form 8-K                            9




SIGNATURES                                                                10


<PAGE>



CENTRAL JERSEY FINANCIAL CORPORATION

Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>


                                                            September 30,          March 31,
                                                                1996                 1996
                                                            -------------          ---------
Assets                                                       Unaudited
                                                             ---------

<S>                                                        <C>                    <C>        
Cash and due from depository institutions                  $   9,586,924          $ 8,804,911
Investment securities; available for sale                      8,133,528            8,266,858
Investment securities; portfolio                              33,354,946           18,501,517
Mortgage-backed securities; portfolio                        188,710,120          191,530,667
Loans held for sale                                            2,666,434            2,231,803
Loans receivable, net                                        204,793,239          220,109,248
Interest receivable on loans, net                              1,437,977            1,506,442
Real estate held for development and resale, net                 402,125              507,490
Real estate acquired in settlement of loans, net                 110,464               26,674
Investment in capital stock of Federal Home Loan Bank of
  New York                                                     3,560,600            3,560,600
Premises and equipment, net                                    5,248,313            5,363,567
Excess of cost over fair value of net assets acquired          3,609,787            3,791,467
Other assets                                                   2,857,618            4,070,726
                                                             -----------          -----------

        Total assets                                       $ 464,472,075         $468,271,970
                                                             ===========          ===========

Liabilities and stockholders' equity

Deposits                                                    $377,617,782         $386,569,400
Other borrowed funds                                          25,900,000           22,500,000
Advances from borrowers for taxes and insurance                1,539,474            1,542,477
Accrued income taxes and other liabilities                     3,270,464            2,048,126
                                                             -----------          -----------

        Total liabilities                                    408,327,720          412,660,003
                                                             -----------          -----------

Serial preferred stock:  authorized, 15,000,000 shares for 
  issuance in series; issued and outstanding, none                    --                   --
Common stock:  no par value; authorized, 25,000,000 
  shares; issued and outstanding 2,790,686 and 2,668,269,
  respectively                                                 2,790,686            2,668,269
Paid-in capital                                               19,392,862           18,510,912
Retained earnings - substantially restricted                  33,895,504           34,319,114
Net unrealized gain on securities available for sale              65,303              113,672
                                                             -----------          -----------

        Total stockholders' equity                            56,144,355           55,611,967
                                                             -----------          -----------

        Total liabilities and stockholders' equity         $ 464,472,075        $ 468,271,970
                                                             ===========          ===========

</TABLE>

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


<PAGE>



                                    CENTRAL JERSEY FINANCIAL CORPORATION

Consolidated Statements of Operations

<TABLE>
<CAPTION>

                                                                       Three Months Ended          Six Months Ended
                                                                          September 30,              September 30,
                                                              ---------------------------------------------------------
                       (Unaudited)                                  1996           1995           1996        1995
                       -----------                                  ----           ----           ----        ----
Interest income
<S>                                                           <C>             <C>            <C>            <C>       
  Interest on loans receivable                                $   4,324,029   $  4,898,003   $  8,01,185    $9,920,006

  Interest on mortgage-backed securities                          3,229,956      2,889,148     6,564,457     5,411,715
  Interest on investment securities                                 704,154        454,191     1,200,938       908,536
  Interest on deposits in other banks                                19,567         16,489        37,282        30,503
                                                                  ---------      ---------    ----------    ----------
    Total interest income                                         8,277,706      8,257,831    16,603,862            --
                                                                  ---------      ---------    ----------    ----------
                                                                                                            16,270,760
Interest expense
  Interest on deposits                                            3,911,211      4,126,604     7,836,004     8,055,773
  Interest on long-term debt                                             --         11,782            --       197,543
  Interest on other borrowed funds                                  309,437        325,833       593,907       557,985
                                                                  ---------      ---------    ----------    ----------
    Total interest expense                                        4,220,648      4,464,219     8,429,911     8,811,301
                                                                  ---------      ---------    ----------    ----------

Net interest income                                               4,057,058      3,793,612     8,173,951     7,459,459

Provision for loan losses                                            50,000        100,000       100,000       150,000
                                                                -----------      ---------     ---------  ------------

Net interest income after provision for loan losses               4,007,058      3,693,612     8,073,951     7,309,459
                                                                -----------     ----------    ----------   -----------

Non-interest income (loss)
  Fee income                                                        244,205        249,614       492,217       493,098
  Income on investment in Federal Home Loan Bank                     58,176         66,617       113,506     132,50992
  Gain on sales of loans, net                                       107,678        109,094       228,896       208,426
  Loss from real estate operations                                 (29,217)       (45,872)      (92,172)      (88,343)
  Other                                                                  --         71,215         1,193        71,215
                                                                   --------                                   --------
    Total non-interest income                                       380,842        450,668       743,640       816,905
                                                                  ---------      ---------      --------      --------
Non-interest expenses
  Salaries                                                          922,576        891,170     1,840,927     1,771,015
  Employee Benefits                                                 173,875        174,852       381,152       363,715
  Data processing fees and equipment costs                          218,617        219,674       423,812       440,721
  Federal deposit insurance                                         220,738        206,203       442,267       407,787
  Special federal deposit insurance assessment                    2,356,105             --     2,356,105            --
  Net occupancy                                                     128,763        138,414       248,474       244,667
  Amortization of excess costs over fair value of net assets
  acquired                                                           90,840         90,840       181,680       181,680

  Advertising                                                        13,945         31,745        28,269        86,585
  Other                                                             383,921        302,677     1,006,224       656,165
                                                                  ---------      ---------    ----------    ----------
    Total non-interest expenses                                   4,509,380      2,055,575     6,908,910     4,152,335
                                                                  ---------      ---------    ----------    ----------


Income (loss) before income taxes                                  (121,480)     2,088,705     1,908,681     3,974,029
Income tax expense (benefit)                                        (36,545)       750,549       803,783     1,425,244
                                                                  ---------      ---------    ----------    ----------

Net income (loss)                                                $ (84,935)     $1,338,156    $1,104,898    $2,548,785
                                                                  =========      =========     =========     =========

Per share amounts:
  Earnings (loss) per common share and common share
    equivalent - assuming no dilution                               $(0.03)          $0.60         $0.40         $1.19

  Earnings (loss) per common share - assuming full dilution
                                                                    $(0.03)          $0.49         $0.40         $0.98
Average shares outstanding:
  Assuming no dilution                                            2,770,670      2,217,247     2,769,269     2,138,437
  Assuming full dilution                                          2,770,670      2,752,308     2,776,943     2,734,541

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</TABLE>

<PAGE>



                                    CENTRAL JERSEY FINANCIAL CORPORATION

Consolidated Statements of Cash Flows          


<TABLE>
<CAPTION>

                                                                                Three Months Ended
                                                                          September 30,
                           (Unaudited)                                        1996            1995
                           -----------                                        ----            ----
Cash flows from:
Operating activities
<S>                                                                      <C>             <C>         
  Net income                                                             $  1,189,833    $  1,210,629
  Adjustments to reconcile net income to net cash
    provided by operating activities
    Provision for losses on loans and real estate, including
      real estate acquired in settlement of loans                              65,000          50,000
    Accretion of discounts on loans acquired in business combination               --         (51,809)
    Amortization of premiums, discounts and deferred fees                      97,082          91,655
    Amortization of excess cost over fair value of net assets acquired         98,840          90,840
    Depreciation of premises and equipment                                     69,720          78,208
    Loans originated for sale                                              (9,270,765)     (6,254,672)
    Proceeds from sales of loans held for sale                              9,379,961       6,047,986
    Net gain on the sale of loans                                            (121,218)        (99,332)
    Net decrease in interest receivable and other assets                       90,356         430,531
    Net increase in other liabilities                                       1,329,118         879,168
                                                                           ----------      ----------

        Net cash provided by operating activities                           2,919,927       2,473,204
                                                                           ----------      ----------

Investing activities
  Net increase in interest-bearing deposits in other banks                         --         (21,000)
  Purchase of investment securities: available for sale                           (11)             --
  Purchase of investment securities: portfolio                             (5,000,000)     (4,998,437)
  Maturities of investment securities: portfolio                               20,105          50,000
  Purchases of mortgage-backed securities: portfolio                      (13,017,958)    (26,619,227)
  Maturities of mortgage-backed securities: portfolio                      11,910,481       4,398,900
  Loans originated, less principal collected                                6,260,668       5,029,788
  Decrease in real estate held for development and resale                     135,000         144,000
  Proceeds from sales of real estate acquired in settlement of loans           40,500              --
  Purchases of premises and equipment, net                                     (2,958)        (56,390)
                                                                           ----------      ----------

      Net cash provided by (used by) investing activities                     345,827     (22,072,366)
                                                                                         ------------    ---------

Financing activities
  Net increase (decrease) in deposits                                      (1,013,040)     22,757,328
  Net increase (decrease) in other borrowed funds                             300,000      (2,600,000)
  Net increase in advances from borrowers                                       6,762          22,748
  Cash dividends paid on common stock                                        (747,115)       (196,415)
                                                                                         ------------    ---------

      Net cash provided by (used by) financing activities                  (1,453,393)     19,983,661
                                                                                         ------------    ---------

Increase in cash and cash equivalents                                       1,812,361         384,499
Cash and cash equivalents at beginning of year                              8,804,911       7,693,873
                                                                                         ------------    ---------

Cash and cash equivalents at end of period                               $ 10,617,272    $  8,078,372

</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


<PAGE>



                                       CENTRAL JERSEY FINANCIAL CORPORATION
<TABLE>
<CAPTION>

Consolidated Statements of Cash Flows                                                       Six Months Ended
                                                                                              September 30,
                                   (Unaudited)                                             1996               1995
                                   -----------                                           ----------       ---------
Cash flows from:
Operating activities
<S>                                                                                      <C>              <C>       
  Net income                                                                             $1,104,898       $2,548,785
  Adjustments to reconcile net income to net cash
    provided by operating activities
    Provision for losses on loans and real estate, including
      real estate acquired in settlement of loans                                           117,119          161,613
    Accretion of discounts on loans acquired in business combination                             --         (103,618)
    Amortization of premiums, discounts and deferred fees                                    217,238         191,781
    Amortization of excess cost over fair value of net assets acquired                       181,680         181,680

    Depreciation of premises and equipment                                                   131,356         207,816
    Loans originated for sale                                                           (16,501,105)     (12,730,018)
    Proceeds from sales of loans held for sale                                           16,295,370       12,455,216
    Net gain on the sale of loans                                                          (228,896)        (208,426)
    Net (increase) decrease in interest receivable and other assets                        1,285,305       (520,720)
    Net increase in other liabilities                                                     1,222,338           89,530
                                                                                   ----------------    -------------

        Net cash provided by operating activities                                         3,825,303        2,273,633
                                                                                   ----------------    -------------

Investing activities
  Sales of investment securities: available for sale                                            902                --
  Purchase of investment securities: portfolio                                          (15,000,000)      (4,998,437)
  Maturities of investment securities: portfolio                                             117,914           50,000
  Purchases of mortgage-backed securities: portfolio                                    (19,622,112)     (40,789,228)
  Murities of mortgage-backed securitites: portfolio                                      22,248,473       12,476,684
  Loans originated, less principal collected                                              14,988,848       10,729,461
  Decrease in real estate held for development and resale                                    90,365           310,000
  Proceeds from sales of real estate acquired in settlement of loans                        264,191           452,084
  Purchases of premises and equipment, net                                                  (16,102)         (65,935)
                                                                                      --------------      -----------

      Net cash provided by (used by) investing activities                                  3,072,479     (21,835,371)
                                                                                      --------------     ------------

Financing activities
  Net increase (decrease) in deposits                                                    (8,951,618)      18,496,846
  Net increase in other borrowed funds                                                    3,400,000         2,500,000
  Net decease in advances from borrowers                                                   (40,010)          (61,193)
  Cash dividends paid on common stock                                                    (1,528,508)        (516,606)
  Options exercised                                                                        1,004,367                 --
                                                                                     ---------------   ----------------

      Net cash provided by (used by) financing activities                                (6,115,769)      20,419,047
                                                                                      --------------   -------------

Increase in cash and cash equivalents                                                       782,013          857,309
Cash and cash equivalents at beginning of year                                            8,804,911        7,693,873
                                                                                      -------------    -------------

Cash and cash equivalents at end of period                                            $    9,586,924   $   8,551,182
                                                                                       =============   =============
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


<PAGE>

                      CENTRAL JERSEY FINANCIAL CORPORATION
                   Notes To Consolidated Financial Statements


        1. Central Jersey Financial  Corporation (the "Corporation") is a thrift
           holding company having one  subsidiary,  Central Jersey Savings Bank,
           SLA ("CJSB"). CJSB is a state chartered savings and loan association.

        2. In the opinion of management, the accompanying unaudited consolidated
           financial statements contain all adjustments  (consisting principally
           of  normal  accruals)  necessary  for  a  fair  presentation  of  the
           Corporation's consolidated financial condition, results of operations
           and cash flows for all periods presented herein.

        3. The  unaudited  consolidated  results of  operations  for each of the
           periods presented in this Form 10-Q are not necessarily indicative of
           the results to be expected for the full year.

        4. The  financial  statements as  presented,  herein,  should be read in
           conjunction with the notes to the consolidated  financial  statements
           included in the Corporation's Annual Report on Form 10-K for the year
           ended March 31, 1996.

        5. Loans receivable

<TABLE>
<CAPTION>


                                                    September 30,       March 31,
                                                         1996             1996
                                                    -------------       ---------
First mortgage real estate loans
<S>                                                 <C>              <C>         
        Conventional...........................     $146,156,712     $154,636,304
        Commercial.............................       26,369,657       29,496,029
        Construction and land..................        9,740,917       11,505,329
        FHA insured and VA guaranteed..........        6,360,800        7,005,926
                                                     -----------      -----------
                                                     188,628,086      202,643,588
Home equity loans..............................       26,241,706       27,509,954
Other consumer loans...........................          673,280          792,676
Other commercial loans.........................          259,688          276,206
                                                     -----------      -----------
                                                     215,802,760      231,222,424
Less:
        Loans in process.......................        7,549,339        7,569,129
        Deferred loan fees.....................          478,657          594,936
        Net premium on loans purchased.........          (32,653)         (82,368)
                                                     -----------      -----------
                                                     207,807,417      223,140,727

        Allowance for loan losses..............        3,014,178        3,031,479
                                                     -----------      -----------
                                                    $204,793,239     $220,109,248
                                                     ===========      ===========

</TABLE>

------------------------
Included in loans  receivable at September 30, 1996 and March 31, 1996 are loans
amounting to $5,928,000 and  $7,782,000,  respectively,  on which the accrual of
interest has been suspended.


                                       -4-

<PAGE>



Notes to Consolidated Financial Statements, continued
-----------------------------------------------------

        6. Earnings  per share  were  computed  by  dividing  net  income by the
           weighted average number of common shares and common share equivalents
           outstanding  during  the  respective   periods.   Stock  options  are
           considered   common  stock  equivalents  and  were  included  in  the
           calculation of the average number of common shares  outstanding using
           the  treasury  stock  method.   Fully  diluted  earnings  per  share,
           primarily   related  to  shares   issuable  in  connection  with  the
           convertible   subordinated  debentures  for  the  1995  period,  were
           computed using the if converted method.

        7. The   Corporation   exchanged   mortgage  loans  for  the  properties
           underlying   the   mortgages   amounting  to  $431,000  and  $97,000,
           respectively,  during each of the six-month  periods ended  September
           30,  1996  and  1995.  The  value  of the  properties  at the time of
           exchange  was $354,000  and  $86,000,  respectively,  for each of the
           six-month  periods  ended  September  30,  1996  and  1995,  and were
           recorded  as  Real  Estate  Acquired  in  Settlement  of  Loans.  The
           differences  between loan  balances  and the value of the  underlying
           properties were charged to allowances provided for such losses.

           Cash paid during each of the six-month  periods  ended  September 30,
           1996 and 1995 for  interest  on  deposits  and  borrowed  funds  were
           $8,434,000  and  $8,801,000,  respectively.  Cash  payments  made for
           federal and state income taxes during the six months ended  September
           30,  1996  and  1995   amounted   to   $2,410,000   and   $1,762,000,
           respectively.

        8. The Corporation,  as previously announced,  entered into a definitive
           merger agreement (the "Agreement") with Summit Bancorp ("Summit"), on
           May 22,  1996.  The  Agreement  provides  for Summit to  acquire  the
           Corporation in a tax-free exchange of stock. On November 6, 1996, the
           Corporation's shareholders  overwhelmingly approved the merger of the
           Corporation  with  Summit.  It is  expected  that the merger  will be
           completed before the end of 1996.

        9. The results for the three-month and six-month periods ended September
           30,  1996  include  a  charge  for  the  Federal  Deposit   Insurance
           Corporation  ("FDIC") special assessment amounting to $2,356,000 on a
           pretax basis.  The after tax charge of  $1,508,000  amounted to $0.54
           per share on both primary and fully diluted bases for the three-month
           and  six-month   periods  ended   September  30,  1996.  The  special
           assessment  resulted from the recently  enacted federal law providing
           for the  recapitalization of the FDIC Savings  Association  Insurance
           Fund ("SAIF"),  whereby a one-time charge of  approximately  66 basis
           points is being  assessed on deposits  held by SAIF  institutions  at
           March 31, 1995.


                                             -5-

<PAGE>



                      CENTRAL JERSEY FINANCIAL CORPORATION
                 Management's Discussion and Analysis Of Results
                      Of Operations And Financial Condition

Overview
--------

        Results for the three months ended September 30, 1996 amounted to a loss
of $84,935, while the six months ended September 30, 1996 resulted in net income
of  $1,104,898.  The results for the  three-month  and  six-month  periods ended
September  30,  1996  included  a  charge  for  the  Federal  Deposit  Insurance
Corporation  ("FDIC")  special  assessment  amounting to  $2,356,105 on a pretax
basis  ($1,508,000  after  taxes).  The  special  assessment  resulted  from the
recently  enacted  federal law  providing for the  recapitalization  of the FDIC
Savings  Association  Insurance  Fund  ("SAIF"),  whereby a  one-time  charge of
approximately  66  basis  points  is being  assessed  on  deposits  held by SAIF
institutions at March 31, 1995.

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

        The  principal  component  of the  Corporation's  income is net interest
income,  the difference  between interest received on  interest-earning  assets,
primarily loans,  mortgage-backed  securities  ("MBS") and investments,  and the
interest expense paid on  interest-bearing  liabilities,  primarily deposits and
borrowings.  Net interest  income  depends  upon the volume of  interest-earning
assets and interest-bearing  liabilities and the interest rate earned or paid on
them.

        Net  interest  income for the three  months  ended  September  30,  1996
increased  $263,446,  from  $3,793,612 for the three months ended  September 30,
1995 to $4,057,058 for the comparable 1996 period.  The increase in net interest
income was primarily the result of the decrease in interest expense of $243,571,
from  $4,464,219 for the three months ended September 30, 1995 to $4,220,648 for
the same period in 1996.

        Net interest income for the six months ended September 30, 1996 compared
with 1995 increased $714,492, from $7,459,459 for the six months ended September
30, 1995 to  $8,173,951  for the  comparable  1996  period.  The increase in net
interest income between the six-month  periods was the result of the increase in
interest  income of $333,102 and the  decrease in interest  expense of $381,390.
Interest  income  increased from  $16,270,760 for the six months ended September
30,  1995  to  $16,603,862  in  1996,  while  interest  expense  decreased  from
$8,811,301 to $8,429,911 over the same period.

        Interest on loans receivable,  the largest component of interest income,
for the  three-month  and six-month  periods ended  September 30, 1996 decreased
$573,974  and  $1,118,821,  respectively,  from  the  comparable  1995  periods.
Interest on loans  receivable  decreased  from  $4,898,003  for the three months
ended  September 30, 1995 to $4,324,029 for the comparable  1996 period and from
$9,920,006  for the six months ended  September 30, 1995 to  $8,801,185  for the
comparable  1996  period.  The  average  balance of loans  receivable  decreased
$26,876,182,  from $241,539,972 for the three months ended September 30, 1995 to
$214,663,790  for the  comparable  1996  period.  The  average  balance of loans
receivable  decreased  $25,816,155,  from  $244,049,525 for the six months ended
September 30, 1995 to $218,233,370  for the comparable  1996 period.  Most loans
currently being  originated by the  Corporation are being sold without  recourse
and with servicing  released.  The policy of selling most loans being originated
will  probably  result in further  reducing the balance of loans  receivable  in
future  periods.  The average  interest rate earned on loans  decreased over the
three-month  and six-month  periods by  approximately 5 basis points and 6 basis
points,  respectively.  The average interest rate earned on loans decreased from
8.11 percent for the three months ended  September  30, 1995 to 8.06 percent for
the  comparable  1996  period and from 8.13  percent  for the six  months  ended
September 30, 1995 to 8.07 percent for the comparable 1996 period.


                                       -6-

<PAGE>



Net Interest Income, continued
------------------------------

        Interest on MBS for the three months ended  September 30, 1996 increased
$340,808 from the comparable 1995 period,  from $2,889,148 in 1995 to $3,229,956
in 1996.  Interest on MBS for the six months ended  September 30, 1996 increased
$1,152,742  from  the  comparable  1995  period,  from  $5,411,715  in  1995  to
$6,564,457  in 1996.  The average  balance of MBS  increased  $20,564,825,  from
$170,065,900  for the three months ended September 30, 1995 to $190,630,725  for
the  comparable   1996  period.   The  average  balance  of  MBS  has  increased
$29,244,905,  from  $161,685,801  for the six months ended September 30, 1995 to
$190,930,706  for the  comparable  1996  period.  The  Corporation  is acquiring
adjustable-rate  MBS and fixed-rate MBS with  contractual  lives of ten years or
less.  The average  rate  earned on MBS has  decreased  between the  three-month
periods by approximately 2 basis points, and between the six-month periods by 19
basis points. The average rate earned on MBS decreased from 6.80 percent for the
three months ended  September 30, 1995 to 6.78 percent for the  comparable  1996
period and  increased  from 6.69 percent for the six months ended  September 30,
1995 to 6.88 percent for the comparable 1996 period.

        Interest on  investment  securities  for the  three-month  and six-month
periods ended September 30, 1996 increased $249,963 and $292,402,  respectively,
from the comparable 1995 periods.  Interest on investment  securities  increased
from $454,191 for the three months ended  September 30, 1995 to $704,154 for the
comparable  1996 period and from $908,536 for the six months ended September 30,
1995 to  $1,200,938  for the  comparable  1996  period.  The average  balance of
investment  securities  increased  $10,860,200,  from  $25,601,097 for the three
months ended  September 30, 1995 to $36,461,297  for the comparable 1996 period.
The  average  balance  of  investment  securities  increased  $9,211,632,   from
$23,961,281  for the six months ended  September 30, 1995 to $33,172,913 for the
comparable 1996 period. The average rate earned on investment securities for the
three-month period ended September 30, 1996 increased 62 basis points,  from the
comparable  1995 period from 7.10 percent in 1995 to 7.72  percent in 1996.  The
average rate earned on investment  securities for the six months ended September
30, 1996  decreased 34 basis points from the comparable  1995 period,  from 7.58
percent in 1995 to 7.24 percent in 1996.

        Interest on deposits for the three-month period ended September 30, 1996
decreased $215,393 from $4,126,604 for the three months ended September 30, 1995
to $3,911,211 for the comparable  1996 period.  The average  balance of deposits
decreased  $253,146,  from $381,840,217 for the three months ended September 30,
1995 to $381,587,071  for the comparable 1996 period.  The average interest rate
paid on deposits  decreased  22 basis  points  from,  4.32 percent for the three
months ended  September 30, 1995 to 4.10 percent for the comparable 1996 period.
For the  six-month  period  ended  September  30,  1996,  interest  on  deposits
decreased $219,769,  from $8,055,773 for the six months ended September 30, 1995
to $7,836,004 for the comparable  1996 period.  The average cost of deposits for
the six month period ended September 30, 1996 decreased 21 basis points from the
comparable 1995 period. The average cost of deposits decreased from 4.30 percent
for the six months ended  September 30, 1995 to 4.09 percent for the  comparable
1996  period.  The average  balance of deposits for the  six-month  period ended
September 30, 1996 increased  $8,283,326,  from the comparable 1995 period.  The
average balance of deposits increased from $374,964,521 for the six months ended
September 30, 1995 to $383,247,847 for the comparable 1996 period.

        Interest expense on long-term debt decreased $197,543 for the six months
ended September 30, 1996 compared with the same period in 1995. The decrease was
the result of converting all of the  Convertible  Subordinated  Debentures  into
common stock of the Corporation in September 1995.

        Interest  expense  on  other  borrowed  funds  for the  three-month  and
six-month  periods  ended  September  30, 1996  decreased  $16,396 and increased
$35,922,  respectively,  from the comparable 1995 periods.  Interest  expense on
other  borrowed  funds  decreased  from  $325,833  for the  three  months  ended
September 30, 1995 to $309,437 for the comparable 1996 period and increased from
$557,985  for the six  months  ended  September  30,  1995 to  $593,907  for the
comparable  1996 period.  The average  balance of other  borrowed  funds for the
three months ended  September  30, 1996  amounted to  $22,595,652  compared with
$21,561,957 for the same period in 1995, an increase of $1,033,695.  The average
interest rate paid on other borrowed funds for the three months ended  September
30, 1996 decreased 56 basis points from the comparable period in 1995, from 6.04
percent in 1995 to 5.48 percent in 1996. For the six months ended  September 30,
1996, the average balance of other borrowed funds increased $3,534,426 from the

                                       -7-

<PAGE>



Net Interest Income, continued
------------------------------

comparable  1995 period.  The average  balance of borrowed funds  increased from
$18,209,290 in 1995 to  $21,743,716  in 1996. The average  interest rate paid on
other  borrowed  funds for the six months ended  September 30, 1996 decreased 67
basis points from the comparable 1995 period,  from 6.13 percent in 1995 to 5.46
percent in 1996.

Non-Interest Income
-------------------

        Non-interest income decreased $69,826 and $73,265, respectively, for the
three-month  and six-month  periods  ended  September 30, 1996 compared with the
same 1995 periods.  Non-interest  income  decreased  from $450,668 for the three
months ended  September 30, 1995 to $380,842 for the comparable  1996 period and
from  $816,905 for the six months ended  September  30, 1995 to $743,640 for the
comparable 1996 period.

        The  decreases  were  generally  the result of gains  recorded  from the
disposition  of two  parcels of land  adjacent  to certain of the  Corporation's
facilities during the three months ended September 30, 1995.

Non-Interest Expense
---------------------

        Non-interest  expenses for the three-month  and six-month  periods ended
September 30, 1996 increased $2,453,805 and $2,756,575,  respectively,  from the
comparable 1995 periods. Non-interest expenses increased from $2,055,575 for the
three months ended  September 30, 1995 to  $4,509,380  for the  comparable  1996
period  and from  $4,152,335  for the six months  ended  September  30,  1995 to
$6,908,910  for the  comparable  1996 period.  The increases  were primarily the
result  of  the  Federal  Deposit  Insurance   Corporation  special  assessment,
discussed  more  fully  in the  accompanying  notes  to  consolidated  financial
statements.  In addition,  other non-interest expenses include costs incurred in
connection with the proposed merger of the Corporation with Summit Bancorp which
amounted to approximately  $270,000 for the six months ended September 30, 1996.
Substantial  additional  merger  related costs will be incurred prior to closing
the merger, projected for the fourth quarter of calendar 1996.

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

        There  were no  significant  changes in the  Corporation's  consolidated
financial   position  between  September  30,  1996  and  March  31,  1996.  The
Corporation remains well capitalized. CJSB's regulatory capital at September 30,
1996  exceeded the current  capital  requirements  established  by the Office of
Thrift Supervision.


                                       -8-

<PAGE>



PART II   OTHER INFORMATION

          Item 1. Legal Proceedings
                  -----------------
                  The Corporation is involved in various legal proceedings which
                  arise out of the general  operations  of its  business.  These
                  lawsuits primarily involve claims to enforce liens on real and
                  personal property,  condemnation  proceedings on real property
                  and other matters  incidental to the  Corporation's  business.
                  The Corporation  does not believe that the resolution of these
                  lawsuits would have a material adverse effect on its financial
                  condition or results of operations.

          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) Exhibit 11 - Statement Re: Computation of Per Share 
                      Earnings



                                       -9-

<PAGE>








                                   SIGNATURES
                                   ----------



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

                      CENTRAL JERSEY FINANCIAL CORPORATION
                      ------------------------------------
                                  (Registrant)


Date   November 13, 1996                /s/ John J. Doherty
       -----------------                -------------------
                                        John J. Doherty
                                        Vice President, Principal Financial
                                        Officer, and Duly Authorized Signatory

                                      -10-