SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON DC 20549

   
                               AMENDMENT NO. 1 TO
                                  FORM 10-QSB

[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934

                For the quarterly period ended December 31, 1997

    
                                       Or

[ ]   Transition Report Pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934

             For the transition period from __________ to __________

                          Commission File No.: 0-18833

                           Chester Valley Bancorp Inc.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


               Pennsylvania                            23-2598554
--------------------------------------------------------------------------------
       (State or other jurisdiction of               (I.R.S. Employer
       incorporation or organization)                Identification No.)


      100 E. Lancaster Ave., Downingtown PA                  19335
      -------------------------------------                 --------
      (Address Of Principal Executive Offices)             (Zip Code)

       Registrant's telephone number, including area code: (610) 269-9700

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

Transitional Small Business Disclosure Format. YES  [   ]     NO  [ X ]

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

 
   Common Stock ($1.00 par value)                        2,177,505
   ------------------------------                       ----------
      (Title of Each Class)                    (Number of Shares Outstanding
                                                   as of February 1, 1998)
<PAGE>
<TABLE>
<CAPTION>
                         CHESTER VALLEY BANCORP INC. AND SUBSIDIARY
                            CONSOLIDATED STATEMENTS OF OPERATIONS
                    (Dollars in Thousands, Except for Per Share Amounts)

   
                                                                      Three Months Ended
                                                                         December 31,
                                                              ----------------------------- 
                                                                    1997             1996
                                                              -----------      ------------ 
<S>                                                           <C>              <C>
    
INTEREST INCOME:
  Loans .................................................     $     5,569      $     5,138
  Investment securities and interest-bearing deposits ...             791              468
                                                              -----------      -----------
     Total interest income ..............................           6,360            5,606
                                                              -----------      -----------

INTEREST EXPENSE:
  Deposits ..............................................           2,883            2,548
  Securities sold under agreements to repurchase ........               2               24
  Short-term borrowings .................................             303               80
  Long-term borrowings ..................................             165              200
                                                              -----------      -----------
     Total interest expense .............................           3,353            2,852
                                                              -----------      -----------

NET INTEREST INCOME .....................................           3,007            2,754
  Provision for loan losses .............................             120              164
                                                              -----------      -----------
      Net interest income after provision for loan losses           2,887            2,590
                                                              -----------      -----------

OTHER INCOME:
  Service charges and fees ..............................             282              236
  Loss on sale of loans held for sale ...................              (2)            --
  Gain on sale of securities available for sale .........              79               20
  Other .................................................              40               51
                                                              -----------      -----------
     Total other income .................................             399              307
                                                              -----------      -----------

OPERATING EXPENSES:
  Salaries and employee benefits ........................             992              885
  Occupancy and equipment ...............................             427              379
  Data processing .......................................             177              158
  Deposit insurance premiums ............................              41              131
  Other .................................................             480              410
                                                              -----------      -----------
     Total operating expenses ...........................           2,117            1,963
                                                              -----------      -----------

  Income before income taxes ............................           1,169              934
  Income tax expense ....................................             338              276
                                                              -----------      -----------

NET INCOME ..............................................     $       831      $       658
                                                              ===========      ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                         CHESTER VALLEY BANCORP INC. AND SUBSIDIARY
                            CONSOLIDATED STATEMENTS OF OPERATIONS
                    (Dollars in Thousands, Except for Per Share Amounts)
                                        (continued)

   
                                                                      Three Months Ended
                                                                         December 31,
                                                              ----------------------------- 
                                                                    1997             1996
                                                              -----------      ------------ 
<S>                                                           <C>              <C>
    
EARNINGS PER SHARE (1):
  Basic .................................................     $      0.38      $      0.31

                                                              ===========      ===========
  Diluted ...............................................     $      0.38      $      0.30
                                                              ===========      ===========

DIVIDENDS PER SHARE PAID DURING PERIOD (1) ..............     $      0.11      $      0.08
                                                              ===========      ===========

WEIGHTED AVERAGE SHARES OUTSTANDING (1):
  Basic .................................................       2,163,109        2,146,914
                                                              ===========      ===========
  Diluted ...............................................       2,197,982        2,158,905
                                                              ===========      ===========
</TABLE>

(1)  Earnings  per  share,  dividends  per share  and  weighted  average  shares
     outstanding  have been  restated  to  reflect  the  effects of the 5% stock
     dividend paid in September 1997 and the five-for-four  stock split effected
     in the form of a dividend in March 1997.

     See accompanying notes to unaudited consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
                         CHESTER VALLEY BANCORP INC. AND SUBSIDIARY
                            CONSOLIDATED STATEMENTS OF OPERATIONS
                    (Dollars in Thousands, Except for Per Share Amounts)

                                                                       Six Months Ended
                                                                         December 31,
                                                              -----------------------------
                                                                    1997             1996
                                                              -----------      ------------ 
<S>                                                           <C>              <C>
INTEREST INCOME:
  Loans .................................................     $    11,071      $     9,993
  Investment securities and interest-bearing deposits ...           1,584              992
                                                              -----------      -----------
     Total interest income ..............................          12,655           10,985
                                                              -----------      -----------

INTEREST EXPENSE:
  Deposits ..............................................           5,724            5,012
  Securities sold under agreements to repurchase ........               3               51
  Short-term borrowings .................................             547              152
  Long-term borrowings ..................................             347              382
                                                              -----------      -----------
     Total interest expense .............................           6,621            5,597
                                                              -----------      -----------

NET INTEREST INCOME .....................................           6,034            5,388
  Provision for loan losses .............................             240              260
                                                              -----------      -----------
      Net interest income after provision for loan losses           5,794            5,128
                                                              -----------      -----------

OTHER INCOME:
  Service charges and fees ..............................             583              508
  Gain (loss) on sale of loans held for sale ............              (1)               3
  Gain on sale of securities available for sale .........             166               68
  Other .................................................              85               97
                                                              -----------      -----------
     Total other income .................................             833              676
                                                              -----------      -----------
OPERATING EXPENSES:
  Salaries and employee benefits ........................           2,007            1,802
  Occupancy and equipment ...............................             851              738
  Data processing .......................................             343              308
  SAIF special assessment ...............................            --              1,387
  Deposit insurance premiums ............................              79              261
  Other .................................................             966              802
                                                              -----------      -----------
     Total operating expenses ...........................           4,246            5,298
                                                              -----------      -----------

  Income before income taxes ............................           2,381              506
  Income tax expense ....................................             697               49
                                                              -----------      -----------

NET INCOME ..............................................     $     1,684      $       457
                                                              ===========      ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                         CHESTER VALLEY BANCORP INC. AND SUBSIDIARY
                            CONSOLIDATED STATEMENTS OF OPERATIONS
                    (Dollars in Thousands, Except for Per Share Amounts)
                                        (continued)

                                                                       Six Months Ended
                                                                         December 31,
                                                              -----------------------------
                                                                    1997             1996
                                                              -----------      ------------ 
<S>                                                           <C>              <C>
EARNINGS PER SHARE (1):
  Basic .................................................     $      0.78      $      0.21
                                                              ===========      ===========
  Diluted ...............................................     $      0.77      $      0.21
                                                              ===========      ===========

DIVIDENDS PER SHARE PAID DURING PERIOD (1) ..............     $      0.21      $      0.15
                                                              ===========      ===========

WEIGHTED AVERAGE SHARES OUTSTANDING (1):
  Basic .................................................       2,162,436        2,150,686
                                                              ===========      ===========
  Diluted ...............................................       2,193,681        2,160,939
                                                              ===========      ===========
</TABLE>



 (1)  Earnings  per  share,  dividends  per share and  weighted  average  shares
      outstanding  have been  restated  to reflect  the  effects of the 5% stock
      dividend paid in September 1997 and the five-for-four stock split effected
      in the form of a dividend in March 1997.

      See accompanying notes to unaudited consolidated financial statements.
<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.

                                         Chester Valley Bancorp Inc.



Date     2-18-98                         /s/Ellen Ann Roberts
                                         --------------------
                                         Ellen Ann Roberts
                                         Chairman and Chief Executive Officer



Date    2-18-98                          /s/Christine N. Dullinger 
                                         -------------------------
                                         Christine N. Dullinger
                                         Treasurer and Chief Financial Officer