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 June 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                     (I.R.S. 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 June 30, 1998      1,095,475

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

                               6/30/98     6/30/97       12/31/97   
<S>                             <C>         <C>           <C>
ASSET   
Cash and due from banks         19,642      16,557         18,565
Interest Bearing Deposits        4,000           0          4,000       
Investment Securities Held to Maturity   
                                59,362      55,428         55,415 
Investment Securities Available for Sale   
                                40,393      39,203         37,278
Fair Value: Securities Held-to-Maturity        
   6/30/98   59,870   
   3/31/97   55,434   
  12/31/97   55,956     
Loan: Net of Unearned Income   289,582    296,021         305,556
Less: Allowance for loan losses  7,054      3,654           5,236
                                ------    -------           -----   
Net Loans                      282,528    292,367         300,320
                                ------    -------           -----   
Federal Funds Sold              46,100     18,900          40,950
Bank Premises and Equipment - Net   
                                 6,450      6,064           6,353
Other Assets                    23,860     18,407          20,473
                                 -----     ------           -----   
Total Assets                   482,335    446,926         483,354
                               =======    =======          ======   

LIABILITIES                    6/30/98    6/30/97        12/31/97   

Deposits - Interest Bearing    377,500    340,824         377,364
Non-Interest Bearing Deposits   61,456     58,203          61,100
                               -------    -------          ------   
Total Deposits                 438,956    399,027         438,464
Funds Purchased                    -            -               -      
Other Liabilities                5,059      6,206           5,331
                                ------    -------          ------  
Total Liabilities              444,015    405,233         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              37,588      41,241          38,767
                               ------     -------          ------   
                               41,977      45,630          43,156
Less: Treasury Stock at cost                 

 179,525 Common Shares  6-30-98       
 188,769 Common Shares  6-30-97       
 183,927 Common Shares 12-31-97   
                               3,806        3,847            3,756
                               -----      -------           ------      
                              38,171       41,783           39,400
Allowance for unrealized gain/losses       
on Available for Sale Securities 149          (90)             159
                               -----      -------           ------   
Total Shareholder's Equity    38,320       41,693           39,559
                               -----      -------            -----   
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   
                             482,335      446,926          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>
                               Six Months         Second Quarter    
<S>                            <C>     <C>         <C>       <C>
INTEREST INCOME      
  Int. on Securities:      
   Taxable int. income         2,111   2,242        1,022     1,154      
   Tax-Exempt int. inc.          710     725          358       363   
   Interest and Fees on Loans 13,126  12,762        6,697     6,548   
   Interest on Interest Bearing Deposits 
                                 114       -          114         -     
   Federal Funds Sold          1,184     550          657       270     
   Lease Income                    0       0            0         0     
                                ----    ----         ----     -----  
Total Int. Income             17,245  16,279        8,848     8,335         

INTEREST EXPENSE    
Interest on Deposit Savings    2,757   2,748        1,379     1,561      
Certificates of Deposit $100,000 and over  
                               2,163   1,747        1,106       876     
Federal Funds Purchased          -         -            -         -     
Other Time Deposits            4,235   3,406        2,117     1,569   
                               -----   -----         ----     -----  
Total Int. Expense             9,155   7,901        4,602     4,006
          
NET INTEREST INCOME            8,090   8,378        4,246     4,329       
Provision for Loan Losses      2,900     660        1,700       315    
                               -----   -----         ----       ---  
Net Interest Income After Provision for Loan Loss
                               5,190   7,718        2,546  	  4,014   

OTHER OPERATING INCOME      
Service charges on deposit accounts 
                                 834     827          423       419   
  Trust Department Income        399     359          209       178   
  Comm., collection      
    Charges and fees             524     192          270        98   
  Investment Security gains/(losses)
                                   0       0            0         0  
Other Non-Interest Income          0       2            0         2
                               -----   -----         ----      ----  
Total Other Operating Income   1,757   1,380          902       697   

OTHER OPERATING EXPENSES      
  Salaries and Wages           2,457   2,499        1,363     1,318 
  Pension and other benefits     697     580          369       279   
  Occupancy and Equipment        969     890          519       507
  FDIC Assessment                 94      67           54        34  
  Postage, stationary and supplies  
                                 265     242          114       103 
  Professional Fees              737     215          395       103   
  Other Oper. Expen.           2,580     808        1,518       423    
                               -----   -----        -----     -----  
Total Other Oper. Expenses     7,799   5,301        4,332     2,767
     
Income Before Income Taxes      (852)  3,797         (884)    1,944    
Applicable Income Taxes            0   1,140          (10)      540     
                                ----   -----         ----     -----  
NET INCOME                      (852)   2,657        (874)    1,404    
                                 ===   =====         ====     =====
 Earnings Per Common Share     (0.70)   2.45        (0.72)     1.30   
</TABLE> 
<PAGE> 
<TABLE>  
SOUTHERN JERSEY BANCORP OF DELAWARE, INC. 
CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in Thousands)                   
                                           Six Months Ended              
                                                 June 30
                                            1998          1997
<S>                                        <C>           <C>
Cash Flows from Operating Activities      
Net Income                                  (852)        2,657      
 Adjustments to reconcile net income to       
  net cash provided by oper. activities        
 Amortization of Organization Expenses         0             0     
 Depreciation of Premises and Equip.         264           232        
 Net Loan Charge-Offs                     (1,082)         (196)       
 Provision for Loan Losses                 2,900           660       
 Premium Amortization net of discount accretion
                                               0            78      
 Gain or (Loss) on Sale of Securities          0             0     
 Gain on Other Real Estate                    (3)            2    
 Gain on Sale of Bank Premises & Equipment     0             0
(Increase)/decrease in Other Assets       (3,405)       (9,920)   
Increase/(decrease) in Other Liabilities    (272)        1,017    
Increase/(decrease) in Borrowed Funds          0             0        
                                          ------         -----   
Net Cash Provided by Operating Activities (2,450)       (5,470)       

Cash Flows from Investing Activities        
  Interest Bearing deposits                   114             0     
  Purchase of Investment Securities       (32,390)      (11,823)    
  Proceeds from Sale of Invest. Secur.                    6,463    
  Proceeds from Maturities of Invest. Securities
                                           24,971         6,662         
  (Increase)/Decease in Loans              15,974       (5,136)     
  Bank Premises and Equipment                (361)           82   
  Proceeds from Sale of Bank Premises and Equipment
                                                0            80
  Proceeds from Sale of Other Real Estate     155           312            
                                            -----          ----   
Net Cash Used for Investing Activities      8,463        (3,360)     

Cash Flows from Financing Activities        
  (Decrease)/Increase in Total Deposits       492        13,643  
  Cash Dividends                             (329)         (652)  
  Purchase of Treasury Stock                 (174)          (90)      
  Sale of Treasury Stock                      225           139          
                                            -----          ----   
Net Cash Provided by Financing Activities     214        13,040   
Net Increase/(Decrease) in Cash and Cash Equivalents
                                            6,227         4,210      
Cash and Equivalents at the Beginning of the Year         
  	                                    63,515       31,247          
                                            ------        -----   
Cash and Equivalents at End of the Quarter  69,742       35,457            
                                             =====        =====   
Supplementary Schedule of Non-Cash Investing and        
Financing Activities      
Loans, Net of Charge-Offs transferred to
Other Real Estate Owned:                      399            0    
</TABLE> 
<PAGE>  
                SOUTHERN JERSEY BANCORP OF DELAWARE, INC. 
                     NOTES TO FINANCIAL STATEMENTS 
                   THREE MONTHS ENDED JUNE 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 intercompany 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 June 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:   August 14, 1998
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                                      OF
                             RESULTS IN OPERATIONS

 Six Months Ended June 30, 1998

     The net operating loss of ($852,000) for the first six months of 1998 
is $3,509,000 less than the net operating income of $2,657,000 for the same 
period for the prior year. Net income after taxes for 1998 is projected to be 
approximately $200,000 or approximately 76.10% less than the $837,000 net 
income after taxes in 1997.

     The decrease in net income through the first six months of 1998 
is primarily due to the increase in the loan loss provision expense to 
$2,900,000 in the first half of 1998 as compared to $660,000 for the first 
half of 1997. This large increase of 394% in the loan loss provision expense 
is attributable to the substantial amount of marine installment loans required 
to be charged off in the first half of 1998 which required the company to 
increase its allowance for loan losses to comply with regulatory requirements. 
This reserve expense increased the Company's loan loss reserve account to 
$7,054,000 at June 30, 1998 from $5,236,000 at December 31, 1997. The Company
had a total of approximately $2,456,000 of repossessed marine collateral 
at the end of the first half of 1998. The establishment of a reserve for 
repossessed marine collateral apart from th $7.054 million 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 
half of 1998 as compared to no such expense in the first half of 1997. 

   There has been the following significant changes in charge offs, 
recoveries, non-accruing or non-performing loans in the first 
half of 1998:

  	An increase from the first quarter to the second quarter of 1998 of 
approximately $225,000 (6.83%)in loans secured by real estate in a non 
accrual status, an increase of approximately $2,744,000 (58.51%) in 
commercial and industrial loans past due 30 through 89 days and still 
accruing, and an increase of approximately $472,000 (10.71%) in commercial 
and industrial loans in a non accrual status. A portion of these 
delinquent loans are secured by real estate and other collateral. 

	Total charge offs for the first six months of 1998 totaled $2,214,000 
while total recoveries during the same period were $1,132,000. These 
charge-offs included a total of $2,040,000 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: 
$2,666,000 30-59 days delinquent, $684,000 60-89 days delinquent all of 
which are still accruing interest, $230,000 90 days to 119 days delinquent. 
There are approximately $25,172,000 of retail installment marine loans that 
are current and performing per their terms.

	The foregoing discussion contains forward-looking statements that 
involve risks and uncertainities. 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 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.