UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE 
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30,1998
Commission File Number 0-12635

SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
(Exact Name of Registrant as specified in Charter)

Delaware                                          22-2983654
(State of Other Jurisdiction                     (IRS Employer 
Of Incorporation or Organization)                 Identification Number)

53 South Laurel Street
Bridgeton, New Jersey 08302
(Address of Principal Executive Offices)

(609) 453-3000
(Registrant's Area Code and Telephone Number)

Registrant has filed all reports required to be filed by Section 13 or 
15(d) of the Securities and Exchange Act of 1934 during the period it 
has been subject to such filing requirements.

                   [X]  YES           []  NO

Common Stock outstanding as of September 30, 1998      1,095,038

<PAGE>
<TABLE>
PART I - Financial Information
This is the consolidated balance sheet for Southern Jersey Bancorp.
All dollar amounts are in thousands.

                               9/30/98     9/30/97       12/31/97   
<S>                             <C>         <C>           <C>
ASSET   
Cash and due from banks         24,867      19,112         18,565
Interest Bearing Deposits        2,000           0          4,000       
Investment Securities Held to Maturity   
                                     0      53,092         55,415 
Investment Securities Available for Sale   
                               113,549      35,387         37,278
Fair Value: Securities Held-to-Maturity        
   9/30/98        0   
   9/30/97   53,454   
  12/31/97   55,956     
Loan: Net of Unearned Income   284,324    308,346         305,556
Less: Allowance for loan losses 10,697      3,711           5,236
                                ------    -------           -----   
Net Loans                      273,627    304,635         300,320
                                ------    -------           -----   
Federal Funds Sold              22,000     43,950          40,950
Bank Premises and Equipment - Net   
                                 7,232      6,041           6,353
Other Assets                    23,982     18,740          20,473
                                 -----     ------           -----   
Total Assets                   467,257    480,957         483,354
                               =======    =======          ======   

LIABILITIES                    9/30/98    9/30/97        12/31/97   

Deposits - Interest Bearing    362,493    378,342         377,364
Non-Interest Bearing Deposits   64,299     55,154          61,100
                               -------    -------          ------   
Total Deposits                 426,792    443,496         438,464
Funds Purchased                    -            -               -      
Other Liabilities                5,290      5,322           5,331
                                ------    -------          ------  
Total Liabilities              432,082    438,818         443,795
Shareholder's Equity       
Common Stock Par Value $1.67 per share       
Authorized 5,000,000 shares;       
Issued 1,275,000 shares         2,129       2,129           2,129    
Surplus                         2,260       2,260           2,260    
Undivided Profits              34,119      41,391          38,767
                               ------     -------          ------   
                               38,508      45,780          43,156
Less: Treasury Stock at cost                 

 179,962 Common Shares  9-30-98       
 185,123 Common Shares  9-30-97       
 183,927 Common Shares 12-31-97   
                               3,829        3,764            3,756
                               -----      -------           ------      
                              34,679       42,016           39,400
Allowance for unrealized gain/losses       
on Available for Sale Securities 496          123              159
                               -----      -------           ------   
Total Shareholder's Equity    35,175       42,139           39,559
                               -----      -------            -----   
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   
                             467,257      480,957          483,354
                             =======      =======          =======    
</TABLE> 
<PAGE> 
<TABLE>  

This is the consolidated balance sheet for Southern Jersey Bancorp of 
Delaware, Inc. All dollar amounts are shown in thousands except for 
the per share data.

<CAPTION>
                               Nine Months         Third Quarter    
<S>                            <C>     <C>         <C>       <C>
INTEREST INCOME      
  Int. on Securities:      
   Taxable int. income         3,117   3,235        1,006       993      
   Tax-Exempt int. inc.        1,069   1,073          359       348   
   Interest and Fees on Loans 19,030  19,488        5,904     6,726   
   Interest on Interest Bearing Deposits 
                                 167       -           53         -     
   Federal Funds Sold          2,023   1,190          839       640     
   Lease Income                    0       0            0         0     
                                ----    ----         ----     -----  
Total Int. Income             25,406  24,986        8,161     8,707         

INTEREST EXPENSE    
Interest on Deposit Savings    4,222   4,247        1,465     1,499      
Certificates of Deposit $100,000 and over  
                               3,145   2,685          982       938     
Federal Funds Purchased          -         -            -         -     
Other Time Deposits            6,257   5,555        2,022     2,149   
                               -----   -----         ----     -----  
Total Int. Expense            13,624  12,487        4,469     4,586
          
NET INTEREST INCOME           11,782  12,499        3,692     4,121       
Provision for Loan Losses      7,874   2,408        4,974     1,748    
                               -----   -----         ----       ---  
Net Interest Income after Provision for Loan Loss
                               3,908  10,091        (1,282)   2,373   

OTHER OPERATING INCOME      
Service charges on deposit accounts 
                               1,287   1,245          453       418   
  Trust Department Income        608     550          209       191   
  Comm., collection      
    Charges and fees             777     486          253       294   
  Investment Security gains/(losses)
                                   0       0            0         0  
Other Non-Interest Income          0       2            0         0
                               -----   -----         ----      ----  
Total Other Operating Income   2,672   2,283          915       903   

OTHER OPERATING EXPENSES      
  Salaries and Wages           3,612   3,584        1,155     1,085 
  Pension and other benefits     899     865          202       285   
  Occupancy and Equipment      1,485   1,375          516       485
  FDIC Assessment                165     105           71        38  
  Postage, stationary and supplies  
                                 375     362          110       120 
  Professional Fees            1,119     363          382       148   
  Other Oper. Expen.           3,246   1,413          666       605    
                               -----   -----        -----     -----  
Total Other Oper. Expenses    10,901   8,067        3,102     2,766
     
Income Before Income Taxes    (4,321)  4,307       (3,469)      510    
Applicable Income Taxes            0   1,500            0       360     
                                ----   -----         ----     -----  
NET INCOME                     (4,321) 2,807       (3,469)     150    
                                 ===   =====         ====     =====
 Earnings Per Common Share     (3.95)   2.58        (3.17)     0.14   
</TABLE> 
<PAGE> 
<TABLE>  
SOUTHERN JERSEY BANCORP OF DELAWARE, INC. 
CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in Thousands)                   
                                           Nine Months Ended              
                                              September 30
                                            1998          1997
<S>                                        <C>           <C>
Cash Flows from Operating Activities      
Net Income                                (4,321)        2,807      
 Adjustments to reconcile net income to       
  net cash provided by operating activities        
 Amortization of Organization Expenses         0             0     
 Depreciation of Premises and Equipment      443           319        
 Net Loan Charge-Offs                     (2,413)       (1,887)       
 Provision for Loan Losses                 5,461         2,408       
 Premium Amortization net of discount accretion
                                               0           102      
 Gain or (Loss) on Sale of Securities          0            (2)    
 Gain on Other Real Estate                    (3)            0    
 Gain on Sale of Bank Premises & Equipment     0             0
(Increase)/decrease in Other Assets       (3,481)      (10,258)   
Increase/(decrease) in Other Liabilities     (41)          133    
Increase/(decrease) in Borrowed Funds          0             0        
                                          ------         -----   
Net Cash Provided by Operating Activities (4,355)       (6,378)       

Cash Flows from Investing Activities        
  Interest Bearing deposits                 2,000             0     
  Purchase of Investment Securities       (56,508)      (13,897)    
  Proceeds from Sale of Invest. Securities      0         8,373    
  Proceeds from Maturities of Invest. Securities
                                           35,034        12,779         
  (Increase)/Decease in Loans              21,232       (17,461)     
  Bank Premises and Equipment                (436)          146   
  Proceeds from Sale of Bank Premises and Equipment
                                                0             0
  Proceeds from Sale of Other Real Estate     155           661            
                                            -----          ----   
Net Cash Used for Investing Activities      1,477        (9,399)     

Cash Flows from Financing Activities        
  (Decrease)/Increase in Total Deposits   (11,672)       48,112  
  Cash Dividends                             (329)         (652)  
  Purchase of Treasury Stock                 (174)         (107)      
  Sale of Treasury Stock                      225           239          
                                            -----          ----   
Net Cash Provided by Financing Activities (11,950)        47,592   
Net Increase/(Decrease) in Cash and Cash Equivalents
                                          (14,828)        31,815      
Cash and Equivalents at the Beginning of the Year         
     	                                     63,515         31,247          
                                           ------          -----   
Cash and Equivalents at End of the Quarter 48,687         63,062            
                                            =====          =====   
Supplementary Schedule of Non-Cash Investing and        
Financing Activities      
Loans, Net of Charge-Offs transferred to
Other Real Estate Owned:                      100            101  
</TABLE> 
<PAGE>  
                SOUTHERN JERSEY BANCORP OF DELAWARE, INC. 
                     NOTES TO FINANCIAL STATEMENTS 
                   NINE MONTHS ENDED SEPTEMBER 30, 1998  

1.  Principals of Consolidation: The consolidated financial statements 
reflect the account of Southern Jersey Bancorp of Delaware, Inc. and its 
subsidiary The Farmers and Merchants National Bank of Bridgeton, after  
the elimination of all inter-company balances and transactions.  

2.  There have been no significant changes in the accounting policies of 
the Registrant the date the most recent annual report to security holders, 
nor have there occurred events, which have material impact on the disclosures 
herein.

3.  The interim financial statements contained herein reflect all 
adjustments which are, in the opinion of management, necessary to a fair 
statement of the results for the interim period presented.

4.  In accordance with Rule 10-01(b)(8), the unaudited interim financial 
statements filed under cover of Form 10-Q for September 30, 1998, reflect 
adjustments that are of a normal recurring nature which are, in the 
opinion of Management, necessary to a fair statement of the results 
for the interim periods presented.

                       SOUTHERN JERSEY BANCORP OF DELAWARE, INC.

                                    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.


           SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
           (Registrant)


           Paul J. Ritter, III
           Treasurer

           Clarence D. McCormick
           Chairman/CEO

DATE:   November 16, 1998
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                                      OF
                             RESULTS IN OPERATIONS

 Nine Months Ended September 30, 1998

     The net operating loss of ($4,321,000) for the first nine months of 
1998 is a $7,191,000 reduction from the net operating income of $2,870,000 
for the same period for the prior year. Net income after taxes for 1998 
is projected to be approximately ($4,300,000) or approximately $5,137,000 
less than the $837,000 net income after taxes in 1997.

     The decrease in net income through the first nine months of 1998 is
primarily due to the increase in the loan loss provision expense to 
$7,513,000 in the first nine months of 1998 as compared to $2,408,000 for 
the first nine months of 1997. This large increase of 312% in the loan loss
provision expense is attributable to the substantial amount of marine 
installment loans required to be charged off and a substantial increase in 
commercial and industrial loans that have been placed on a non-accrual status
in the first nine months of 1998. This large increase in non-accrual loans 
required the Company to increase its allowance for loan losses to comply 
with regulatory requirements. The provision for loan losses increased 
the Company's loan loss reserve account to $10,967,000 at September 30, 
1998 from $5,236,000 at December 31, 1997. The Company had a total of 
approximately $2,379,000 of repossessed marine collateral at the end of 
the first nine months of 1998. The establishment of a reserve in the 
amount of $1,437,000 for repossessed marine collateral apart from the
$10,336,000 in the loan loss reserve account was necessitated to cover 
liquidation expenses. A provision for other marine assets of $1,437,000
was expensed in the first nine months of 1998 as compared to no such
expense in the first nine months of 1997, which is reflected in the other
operating expense category. The current balance of the reserve for
repossessed collateral as of September 30, 1998 is $547,000. The substantial
increase in legal and professional fees of approximately $310,000 and the
increase of $447,000 in repossession and liquidation fees as of September 
30, 1998 as compared to September 30, 1997 are primarily due to the
collection of delinquent marine collateral.

There have been the following significant changes in chareg-offs,
recoveries, non-accruing or non-performing loans in the first nine
months of 1998:

    An increase from the second to the third quarter of 1998 of 
approximately $205,000 for loans secured by real estate past due 30 
through 89 days and still accruing, an increase of approximately 
$501,000 for the loans secured by real estate that are non-accrual, 
an increase of approximately $215,000 in commercial and industrial 
loans past due 90 days or more and still accruing, an increase of 
approximately $4,328,000 in commercial and industrial loans that 
are non-accrual, an increase of approximately $777,000 in loans to 
individuals for household, family and other personal expenditures 
that are non-accrual. Real estate and other collateral secure a 
portion of these delinquent loans. The increase in commercial and 
industrial loans that are non-accrual is primarily a result of the
continuing efforts of the Company to recognize impaired assets as 
quickly and accurately as possible. Included in this amount are 
three fully collateralized loans, which constitute approximately 
2.2 million dollars. 
  	
	Total charge offs for the first nine months of 1998 totaled 
approximately $3,957,000 while total recoveries during the same 
period were $1,544,000. These charge offs included a total of 
$2,858,000 in charge offs of loans to individuals for household, 
family and other personal expenditures which includes installment 
marine retail loans.

	The Company has delinquent retail installment marine loans as follows: 
approximately $2,085,000 30-59 days delinquent, approximately $989,000 
60-89 days delinquent all of which are still accruing interest, 
approximately $205,000 90 days to 119 days delinquent. There is 
approximately $25,000,000 of retail installment marine loans that 
are current and performing per their terms.

	The Company has adopted FASB 133 effective September 30, 1998 and is 
now carrying all of its investment securities at their market value and 
these securities are all classified as "Available for Sale."

	The Company has incurred an extraordinary expense of approximately 1.5 
million dollars to replace its core data processing system in 1998 that will
be amortized over the next three to five years. 

Year 2000

	In the past, many computer systems were designed only to recognize 
a six-digit date structure (i.e. two digits for each of the month, day, and 
year). Many of these programs and systems may not be able to interpret and 
process accurately a six-digit date ending with "00". To the extent these 
systems are unable to process into the year 2000, inaccurate results may 
be produced.

	The Bank utilizes computer hardware and software programs to conduct 
and support its ongoing operations. Management implemented a plan (the 
"Plan") in January 1997 to address the Bank's Year 2000 situation. To 
implement the Plan, management established a task force responsible for 
overseeing the implementation of the Plan to completion. The Plan includes 
the estimated costs of repairing or replacing computer systems or software 
as necessary and is expected to cost between approximately $1.5 million 
and $2.0 million. To date, the Bank has expended approximately $1.5 million 
to effectuate the Plan.

	The Plan is comprised of several phases. The first phase involved 
the assessment of the Bank's current systems and vendors to determine 
their Y2K compliance. The Bank reviewed all of its software vendors, 
both banking specific and general software applications; hardware vendors; 
Trust Department vendors; third party service providers; and infrastructure 
issues. During this evaluation, the Bank made the determination of what 
systems needed to be updated or replaced.
	
After the completion of this assessment, the Bank began the upgrade or 
replacement of any systems that were identified as non-Y2K compliant in 
the assessment phase. This included the replacement of the Bank's core 
accounting system hardware and software. The Bank formed a committee to 
monitor this process. The conversion was completed by the end of the third 
quarter of 1998. The Bank also performed several other replacements and 
upgrades to ensure year 2000 compliance. These upgrades are approximately 
90% complete.

The Bank is preparing for the validation phase of the project. The Bank 
is prioritizing its systems based on the critical nature of each. Those 
of higher priorities will be tested and the results reviewed for accuracy. 
A Y2K Test Committee will be formed to complete this phase of the project. 
This committee will consist of members of the Bank's management representing 
the various departments of the Bank. The testing of internal applications 
is expected to be completed by March 31, 1999. The testing of external 
vendor relationships is expected to be completed by June 30, 1999.

Although the Bank has developed and is implementing its Plan to address 
the Year 2000 issue, no assurances can be made that the Plan will be 
fully implemented within the estimated timeframe and cost; nor can any 
assurances be given, regardless of whether the Plan is fully and timely 
implemented, that the efforts of the Bank will be, either partially or 
wholly, successful. Much of the Bank's success in implementing its Plan 
will rely on third parties who are beyond the Bank's control. The complete 
failure of the Bank's Plan to address the Year 2000 situation may have a 
material adverse effect on the operations of the Bank. As of September 30, 
1998, the Bank is uncertain of the magnitude of the impact the Year 2000 
issue will have on its operations. The Bank anticipates that it will be 
better able to evaluate such concerns upon the completion of the Validation 
Phase of the Plan. Management is attempting to prepare contingency plans 
to address the partial or complete failure of the Plan, and/or the failure 
of third parties with whom the Bank does business to address timely and 
successfully the Year 2000 issue.

	The foregoing discussion contains forward-looking statements that 
involve risks and uncertainties. The Company's actual results could differ 
materially from those anticipated in these forward-looking statements 
as a result of certain factors, including the performance of the 
Company's marine loan portfolio, the commercial and industrial loans 
and the banking industry performance in general.
<PAGE>
                         PART II - OTHER INFORMATION

EXHIBITS AND REPORTS ON FORM 8-K
      A.  	Exhibits
            Exhibit 27. Financial Data Schedule
      B.    Reports on Form 8-K
            No reports have been filed on Form 8-K during this quarter.