<PAGE>

                   U. S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC  20549
                                  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       September 30, 2001
                              -------------------------------

                                       OR

[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

For the transition period from ________________to_______________

Commission file number   33-22224-B
                      ----------------

                         Beverly National Corporation
       ----------------------------------------------------------------
          (Name of small business issuer as specified in its charter)

      Massachusetts                                    04-2832201
--------------------------------------------------  --------------
(State or other jurisdiction of                     (I.R.S. Employer
 incorporation or organization)                     Identification No.)

240 Cabot Street  Beverly, Massachusetts                    01915
--------------------------------------------------  ------------------
(Address of principal executive offices)                 (Zip Code)

  Issuer's telephone number, including area code        (978) 922-2100
                                                        --------------

Check whether the issuer (l) filed all reports required to be filed by Section
l3 or l5 (d) of the Securities Exchange Act during the past l2 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
                         ----------              ---------


State the number of shares outstanding of each of the issuer's classes of common
equity, as of November 1, 2001.  1,643,074 shares

Transitional small business disclosure format      Yes        No   X
                                                      ------     ------



<PAGE>

                          BEVERLY NATIONAL CORPORATION

                                     INDEX

                                                                            PAGE
                                                                            ----
PART I.   FINANCIAL INFORMATION

Item 1.   Condensed Financial Statements

          Consolidated Balance Sheets at
          September 30, 2001(Unaudited)and December 31, 2000...............   3

          Consolidated Statements of Income for the Nine and Three
          Months Ended September 30, 2001 and 2000 (Unaudited).............   4

          Consolidated Statements of Cash Flows for the
          Nine Months Ended September 30, 2001 and 2000 (Unaudited)........   5

          Notes to Consolidated Financial Statements (Unaudited)...........   7

Item 2.   Management's Discussion and Analysis or Plan of Operations.......   8


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings................................................  15

Item 2.   Changes in Securities and Use of Proceeds........................  15

Item 3.   Defaults Upon Senior Securities..................................  15

Item 4.   Submission of Matters to a Vote of Security Holders..............  15

Item 5.   Other Information................................................  15

Item 6.   Exhibits and Reports on Form 8-K.................................  15


Signatures.................................................................  16

                                       2
<PAGE>

                  BEVERLY NATIONAL CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                 September 30,          December 31,
                                                                                    2001                   2000
                                                                                -------------          -------------
<S>                                                                            <C>                   <C>
                       ASSETS

Cash and due from banks                                                          $  12,930,945          $  27,780,903
Interest bearing demand deposits with other banks                                      126,120                121,830
Federal funds sold                                                                  27,000,000              1,000,000
                                                                                 -------------          -------------
   Cash and cash equivalents                                                        40,057,065             28,902,733

Investments in available-for-sale securities (at fair value)                        54,949,340             37,934,262
Investments in held-to-maturity securities                                           1,151,565             17,131,682
Federal Home Loan Bank stock, at cost                                                  730,800                636,200
Federal Reserve Bank stock, at cost                                                     97,500                 97,500

Loans:
  Commercial                                                                        28,966,360             26,985,224
  Real estate - construction and land development                                    4,528,249              3,531,582
  Real estate - residential                                                         72,030,335             72,905,875
  Real estate - commercial                                                          55,680,060             51,360,964
  Consumer                                                                           8,167,474              8,857,132
  Municipal                                                                          6,316,402              6,625,815
  Other                                                                                551,114                765,723
  Allowance for loan losses                                                         (1,932,750)            (1,912,696)
  Deferred loan costs, net                                                             420,267                298,853
                                                                                 -------------          -------------
     Net loans                                                                     174,727,511            169,418,472

Mortgages held for sale                                                              2,320,873                200,269
Premises and equipment, net                                                          4,982,298              5,140,697
Accrued interest receivable                                                          1,793,342              1,890,088
Other assets                                                                         2,455,362              2,751,622
                                                                                 -------------          -------------

TOTAL ASSETS                                                                     $ 283,265,656          $ 264,103,525
                                                                                 =============          =============



                   LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:
  Noninterest bearing                                                            $  53,423,837          $  66,437,616
  Interest bearing
   Regular savings                                                                  58,414,100             49,312,984
   NOW accounts                                                                     49,326,084             40,832,374
   Money market accounts                                                            29,846,905             23,581,066
   Time deposits                                                                    63,481,117             58,710,821
                                                                                 -------------          -------------
     Total deposits                                                                254,492,043            238,874,861

Other liabilities                                                                    4,413,849              2,493,432
                                                                                 -------------          -------------

     Total liabilities                                                             258,905,892            241,368,293
                                                                                 -------------          -------------


Stockholders' equity:

Preferred stock, $2.50 par value per share;
   300,000 shares authorized; issued and outstanding none
Common stock, $2.50 par value per share;
   2,500,000 shares authorized; issued 1,687,398 shares
  as of September 30, 2001 and 1,678,898 shares as of December 31, 2000;
  outstanding 1,641,274 shares as of September 30, 2001 and 1,632,774 shares as
  of December 31, 2000                                                               4,218,495              4,197,245
Paid-in Capital                                                                      2,967,886              2,929,381
Retained earnings                                                                   17,098,187             15,982,441
Treasury stock, at cost, 46,124 shares as of
  September 30, 2001 and December 31, 2000                                            (427,467)              (427,467)
Accumulated other comprehensive income                                                 502,663                 53,632
                                                                                 -------------          -------------

     Total stockholders' equity                                                     24,359,764             22,735,232
                                                                                 -------------          -------------

Total liabilities and stockholders' equity                                       $ 283,265,656          $ 264,103,525
                                                                                 =============          =============

</TABLE>

The accompanying notes are an integral part of these condensed consolidated
financial statements.

                                       3
<PAGE>

                 BEVERLY NATIONAL CORPORATION AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                            Nine Months Ended September 30,         Three Months Ended September 30,
                                                            --------------------------------        --------------------------------
                                                                  2001               2000                 2001             2000
                                                            ------------        ------------        -------------      -------------
<S>                                                         <C>                 <C>                   <C>            <C>
INTEREST INCOME:
  Interest and fees on loans                                 $10,933,415          $10,038,890          $3,574,799      $3,488,025
  Interest and dividends on investment securities:
    Taxable                                                    2,507,124            2,291,151             834,857         818,966
    Tax-exempt                                                    36,816               34,187               8,955          18,540
  Dividends on marketable equity securities                        5,127                3,923               1,922               0
  Other interest                                                 459,347              423,811             172,553         156,084
                                                             -----------          -----------          ----------      ----------


     Total interest and dividend income                       13,941,829           12,791,962           4,593,086       4,481,615
                                                             -----------          -----------          ----------      ----------

INTEREST EXPENSE:
  Interest on Deposits                                         4,674,689            4,263,016           1,583,730       1,516,654
  Interest on Federal Home Loan Bank borrowings                   12,977                2,699                   0               0
                                                             -----------          -----------          ----------      ----------

     Total interest expense                                    4,687,666            4,265,715           1,583,730       1,516,654
                                                             -----------          -----------          ----------      ----------

Net interest and dividend income                               9,254,163            8,526,247           3,009,356       2,964,961

Provision for loan losses                                         90,000                    0              45,000               0
                                                             -----------          -----------          ----------      ----------
Net interest and dividend income after provision for
 loan losses                                                   9,164,163            8,526,247           2,964,356       2,964,961
                                                             -----------          -----------          ----------      ----------

NONINTEREST INCOME:
  Income from fiduciary activities                             1,245,116            1,212,518             394,235         408,249
  Service charges on deposit accounts                            355,135              298,130             127,573         105,104
  Other deposit fees                                             204,514              170,293              69,474          58,699
  Mortgage servicing income (loss)                                20,359              (16,969)             41,269          (1,722)
  Other income                                                   402,237              363,594             131,324         125,055
                                                             -----------          -----------          ----------      ----------

     Total noninterest income                                  2,227,361            2,027,566             763,875         695,385
                                                             -----------          -----------          ----------      ----------

NONINTEREST EXPENSE:
  Salaries and employee benefits                               4,422,207            4,052,715           1,413,880       1,230,471
  Occupancy expense                                              838,893              779,643             245,476         271,910
  Equipment expense                                              437,807              442,713             157,826         154,434
  Data processing fees                                           406,752              329,441             142,325         139,567
  Professional fees                                              218,034              163,587              64,794          47,495
  Stationary and supplies                                        170,429              142,935              73,872          18,369
  Contributions                                                  100,959               70,378              40,714          40,072
  Marketing and public relations                                 344,445              278,733              98,257          80,401
  Other expense                                                1,194,605            1,072,644             387,337         352,199
                                                             -----------          -----------          ----------      ----------
     Total noninterest expense                                 8,134,131            7,332,789           2,624,481       2,334,918
                                                             -----------          -----------          ----------      ----------

      Income before income taxes                               3,257,393            3,221,024           1,103,750       1,325,428

Income taxes                                                   1,225,257            1,189,000             414,825         457,600
                                                             -----------          -----------          ----------      ----------
     NET INCOME                                              $ 2,032,136          $ 2,032,024          $  688,925      $  867,828
                                                             ===========          ===========          ==========      ==========

COMPREHENSIVE INCOME                                         $ 2,481,167          $ 2,238,318          $1,346,639      $1,100,535
                                                             ===========          ===========          ==========      ==========

Earnings per share:

Basic shares outstanding                                       1,636,084            1,610,683           1,639,717       1,629,057
                                                             ===========          ===========          ==========      ==========

Diluted shares outstanding                                     1,779,072            1,735,148           1,785,120       1,744,129
                                                             ===========          ===========          ==========      ==========

Net income per share-Basic                                   $      1.24          $      1.26          $     0.42      $     0.53
Net income per share-Diluted                                 $      1.14          $      1.17          $     0.39      $     0.50
Dividends per share                                          $      0.56          $      0.48          $     0.20      $     0.18

</TABLE>
            The accompanying notes are an integral part of these condensed
consolidated financial statements.

                                       4
<PAGE>

                 BEVERLY NATIONAL CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 Nine Months Ended September 30, 2001 and 2000
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                  2001                   2000
                                                                              -------------         -------------
<S>                                                                          <C>                   <C>
 Cash flows from operating activities:
  Interest received                                                            $ 13,615,093          $ 12,130,507
  Service charges and other income                                                2,227,361             2,027,566
  Interest paid                                                                  (4,683,247)           (4,178,261)
  (Increase) decrease in mortgages held for sale                                 (2,120,604)            1,283,172
  Cash paid to suppliers and employees                                           (7,606,918)           (7,141,160)
  Income taxes paid                                                              (1,215,291)             (990,237)
                                                                               ------------          ------------

  Net cash provided by operating activities                                         216,394             3,131,587
                                                                               ------------          ------------

 Cash flows from investing activities:
  Proceeds from maturities of investment securities held-to-maturity             15,994,500               110,000
  Proceeds from maturities of investment securities available-for-sale           44,018,907             1,577,884
  Purchases of investment securities held-to-maturity                                     0            (1,161,351)
  Purchases of investment securities available-for-sale                         (60,297,269)           (7,918,413)
  Purchase of Federal Home Loan Bank stock                                          (94,600)                    0
  Net increase in loans                                                          (5,304,488)          (17,010,304)
  Capital expenditures                                                             (361,128)             (550,444)
  Recoveries of previously charged off loans                                         26,863               110,124
  (Increase) decrease in other assets                                               239,256              (166,032)
  Increase in other liabilities                                                   1,955,350               229,545
                                                                               ------------          ------------

  Net cash (used in) investing activities                                        (3,822,609)          (24,778,991)
                                                                               ------------          ------------


Cash flows from financing activities:
  Net increase in demand deposits, NOW,
      money market & savings accounts                                            10,846,886            15,622,601
  Net increase in time deposits                                                   4,770,296             7,194,068
  Issued common stock                                                                59,755               377,137
  Dividends paid                                                                   (916,390)             (774,303)
                                                                               ------------          ------------


  Net cash provided by financing activities                                      14,760,547            22,419,503
                                                                               ------------          ------------


 Net increase in cash and cash equivalents                                       11,154,332               772,099
 Cash & cash equivalents beginning of year                                       28,902,733            16,378,530
                                                                               ------------          ------------

 Cash & cash equivalents at September 30:                                      $ 40,057,065          $ 17,150,629
                                                                               ============          ============

</TABLE>


The accompanying notes are an integral part of these condensed consolidated
financial statements.

                                       5
<PAGE>

                 BEVERLY NATIONAL CORPORATION AND SUBSIDIARIES

                 BEVERLY NATIONAL CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 Nine Months Ended September 30, 2001 and 2000
                                  (Unaudited)
                                  (Continued)

Reconciliation of net income to net cash provided by operating activities:

<TABLE>
<CAPTION>
                                                                                       2001                 2000
                                                                                   -----------          -----------
<S>                                                                               <C>                  <C>
 Net income                                                                        $ 2,032,136          $ 2,032,024
                                                                                   -----------          -----------
 Depreciation expense                                                                  519,527              516,767
 Amortization expense of investment securities                                          13,551                1,397
 Accretion income of investment securities                                            (315,619)             (39,853)
 Provision for loan losses                                                              90,000                    0
 Increase in taxes payable                                                               9,966              198,763
 (Increase) decrease in interest receivable                                             96,746             (556,113)
 Increase in interest payable                                                            4,419               87,454
 Decrease in accrued expenses                                                          (49,318)             (25,760)
 (Increase) decrease in mortgages held for sale                                     (2,120,604)           1,283,172
 Change in deferred loan costs,net                                                    (121,414)             (66,886)
 (Increase) decrease in prepaid expenses                                                57,004             (299,378)
                                                                                   -----------          -----------

Total adjustments                                                                   (1,815,742)           1,099,563

                                                                                   -----------          -----------
Net cash provided by operating activities                                          $   216,394          $ 3,131,587
                                                                                   ===========          ===========
</TABLE>


The accompanying notes are an integral part of these condensed consolidated
financial statements.

                                       6
<PAGE>

                          BEVERLY NATIONAL CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001

                                  (Unaudited)

1.   BASIS OF PRESENTATION

     The interim condensed consolidated financial statements contained herein
     are unaudited but, in the opinion of management, include all adjustments
     which are necessary to make the financial statements not misleading.  All
     such adjustments are of a normal recurring nature.  The results of
     operations for any interim period are not necessarily indicative of results
     that may be expected for the year ended December 31, 2001.

     The year-end condensed balance sheet data was derived from audited
     financial statements, but does not include all disclosures required by
     accounting principles generally accepted in the United States of America.

2.   EARNINGS PER SHARE

     Earnings per share calculations are based on the weighted-average
     number of common shares outstanding during the period.

     Basic EPS excludes dilution and is computed by dividing income available to
     common stockholders by the weighted-average number of common shares
     outstanding for the period.  Diluted EPS reflects the potential dilution
     that could occur if the securities or other contracts to issue common stock
     were exercised or converted into common stock or resulted in the issuance
     of common stock that then shared in the earnings of the entity.

3.   RECLASSIFICATION

     Certain amounts for prior periods have been reclassified to be consistent
     with the current statement presentation.

4.  IMPACT OF NEW ACCOUNTING STANDARDS

    In June 1998, the FASB issued SFAS No. 133 "Accounting for Derivative
    Instruments and Hedging Activities".  Statement No. 133, as amended by SFAS
    138, establishes accounting and reporting standards for derivative
    instruments, including certain derivative instruments embedded in other
    contracts and for hedging activities.  The Statement is effective for all
    fiscal quarters of fiscal years beginning after June 15, 2000.  In
    management's opinion, SFAS No. 133 does not have a material effect on the
    corporation's consolidated financial statements.

    FASB has issued SFAS No. 140, Accounting for Transfers and Servicing of
    Financial Assets and Extinguishments of Liabilities.  This Statement
    replaces SFAS No. 125, Accounting for Transfers and Servicing of Financial
    Assets and Extinguishments of Liabilities, and rescinds SFAS

                                       7
<PAGE>

    Statement No. 127, "Deferral of the Effective Date of Certain Provisions of
    FASB Statement No. 125." SFAS No. 140 provides accounting and reporting
    standards for transfers and servicing of financial assets and
    extinguishments of liabilities. This statement provides consistent standards
    for distinguishing transfers of financial assets that are sales from
    transfers that are secured borrowings. This statement is effective for
    transfers and servicing of financial assets and extinguishments of
    liabilities occurring after March 31, 2001; however, the disclosure
    provisions are effective for fiscal years ending after December 15, 2000.
    The adoption of this statement did not have a material impact on the
    Corporations financial position or results of operations.

    Statement of Financial Accounting Standards No. 141 improves the consistency
    of the accounting and reporting for business combinations by requiring that
    all business combinations be accounted for under a single method - the
    purchase method.  Use of the pooling-of-interests method is no longer
    permitted.  Statement No. 141 requires that the purchase method be used for
    business combinations initiated after June 30, 2001.  Management does not
    anticipate any impact on the consolidated financial statements upon adoption
    of this statement.

    Statement of Financial Accounting Standards No. 142 requires that goodwill
    no longer be amortized to earnings, but instead be reviewed for impairment.
    The amortization of goodwill ceases upon adoption of the Statement, which
    for most companies, will be January 1, 2002. Management does not anticipate
    any impact on the consolidated financial statements upon adoption of this
    statement.

                                       8
<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

Introduction
------------

The following discussion includes Beverly National Corporation (the
"Corporation") and its subsidiaries, Beverly National Bank (the "Bank"), Cabot
Street Realty Trust (the "CSRT") and the Bank's wholly owned subsidiaries,
Beverly Community Development Corporation (the "CDC") and Hannah Insurance
Agency (the "Hannah").  Hannah began operations in September 2001.  The purpose
of the CDC is to promote lending in Beverly's low and moderate income census
tracks.  The purpose of Hannah insurance is to market life insurance and long
term care products and operations to date have been minor.

Summary
-------

The Corporation's net income for the nine months ended September 30, 2001, was
$2,032,136, virtually unchanged when compared to the Corporation's net income of
$2,032,024 for the nine-month period ended September 30, 2000.  Primary earnings
per share totaled $1.24 for the nine months ended September 30, 2001, as
compared to primary earnings per share of $1.26 for the nine months ended
September 30, 2000.  On a fully diluted basis, earnings per share for the first
nine months of 2001 amounted to $1.14 as compared with $1.17 for the same period
in 2000.  The Corporation declared and paid three quarterly dividends totaling
$.56 per share as compared with $.48 per share during the same period in 2000.

During the first nine months of 2001, the Corporation's total assets increased
$19,162,131 or 7.3% and amounted to $283,265,656 at September 30, 2001.  Growth
in assets was reflected in increases in Federal Funds Sold, available-for-sale
securities, the loan portfolio and mortgages held for sale. Growth for the nine
months was as follows: available for sale securities grew $17,015,078 or 44.9%
and net loans grew $5,309,039 or 3.1%.  These increases are primarily the result
of reallocation of the securities in the held to maturity portfolio, of which
$15,980,117 or 93.3%, were called and reallocated to available for sale
securities.  Loan growth was due to an increase in commercial loan and
commercial real estate mortgage lending. Deposits increased $15,617,182 or 6.5%
during the first nine months of 2001.  As a result, total deposits increased
from $238,874,861 at December 31, 2000 to $254,492,043 at September 30, 2001.
Non-interest bearing deposits declined from $66,437,616 at December 31, 2000 to
$53,423,837 at September 30, 2001.


                      NINE MONTHS ENDED SEPTEMBER 30, 2001
              AS COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2000

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

Net interest and dividend income for the nine months ended September 30, 2001,
totaled $9,254,163 as compared to $8,526,247 for the same time period in 2000.
This increase was $727,916 or 8.5%.  Total interest and dividend income equaled
$13,941,829 for the nine months ended September 30, 2001 as compared to
$12,791,962 for the same time period in 2000, an increase of

                                       9
<PAGE>

$1,149,867 or 9.0%. Loan income for the nine months ended September 30, 2001,
totaled $10,933,415 as compared to $10,038,890 for the same time period in 2000.
This increase of $894,525 or 8.9% represents the increased level of loan
production. Interest and Dividends on Taxable Securities for the nine months
ended September 30, 2001 totaled $2,507,124 as compared to $2,291,151 for the
same period in 2000. This increase of $215,973 or 9.4% is attributable to a high
volume of investments that were held at discount and were called because of the
low interest rate environment. The interest and dividends on tax exempt
securities increased $2,629 or 7.7% during the first nine months of 2001 as
compared with the same period of 2000, due to higher volume. The other interest
earned including Federal funds sold increased $35,536 or 8.4% for the nine
months ended September 30, 2001 when compared to the same time period in 2000
due to higher volume.

Deposit interest expense equaled $4,674,689 for the nine months ended September
30, 2001, as compared to $4,263,016 for the same period in 2000. This increase
of $411,673 or 9.7% reflects the current strategy of managing the cost of funds
of the Bank.  The Bank generally pays competitive rates for its deposit base in
the local market.

Interest on borrowings totaled $12,977 for the nine months ended September 30,
2001 as compared to $2,699 for the same period in 2000.  This is an increase of
$10,278 or 380.8%.

Provisions for Loan Losses
--------------------------

Credit risk is inherent in the business of extending loans.  The Bank maintains
an allowance or reserve for credit losses through charges to earnings.  The loan
loss provision for the nine months ended September 30, 2001 was $90,000. No
provisions were made for the same period in 2000.  The $90,000 provision made
during 2001 represents the first provision to the ALLL since 1994.  The
softening of the economy and management's assessment of the potential for
continued weakness in the economy and the potential erosion of collateral values
were the primary factors which warranted the provision despite the current sound
quality of the Bank's portfolio. (See "Allowance for Loan Losses").


Non-interest Income
-------------------

Non-interest income totaled $2,227,361 for the nine months ended September 30,
2001 as compared to $2,027,566 for nine months ended September 30, 2000.  This
is an increase of $199,795 or 9.9%.  Income from fiduciary activities totaled
$1,245,116 for the nine months ended September 30, 2001 as compared to
$1,212,518 for the nine months ended September 30, 2000. This $32,598 or 2.7%
increase can be attributed to increased recurring trust business.  Service
charges on deposit accounts totaled $355,135 for the nine months ended September
30, 2001, as compared to $298,130 for the same time period in 2000.  This
increase is due to increased service charges for electronic banking.  Other
deposit fees increased $34,221 or 20.1% for the nine months ended September 30,
2001 as compared to the same time period in 2000.  Other income for the nine
months ended September 30, 2001 totaled $402,237 as compared to $363,594 for the
nine months ended September 30, 2000, an increase of $38,643 or 10.6%.  The
mortgage servicing income increased $37,328 for the nine months ended September
30, 2001 as compared to the same time period in 2000.

                                       10
<PAGE>

Non-interest Expense
--------------------

Non-interest expense totaled $8,134,131 for the nine months ended September 30,
2001, as compared to $7,332,789 for the same time period in 2000.  This increase
totaled $801,342 or 10.9%.  This increase is primarily attributed to additional
personnel, data processing costs and new delivery systems.  Salaries and
benefits totaled $4,422,207 for the nine months ended September 30, 2001 and
$4,052,715 for the same time period in 2000.  This $369,492 or 9.1% increase is
due to additional personnel. Occupancy expense totaled $838,893 for the nine
months ended September 30, 2001 as compared to $779,643 for the same period in
2000 which is an increase of $59,250 or 7.6%. This increase is due to increased
building security along with higher expenses of repairs and maintenance of
facilities.  The costs of equipment totaled $437,807 for the nine months ended
September 30, 2001 as compared to $442,713 for the same period in 2000.
Decreased expense for depreciation equipment  created this situation.  Data
processing fees totaled $406,752 for the nine months ended September 30, 2001 as
compared to $329,441 for the corresponding time in 2000. This increase of
$77,311 or 23.5% is due to higher volumes and additional data processing
products. Professional fees increased $54,447 or 33.3% for the nine months ended
September 30, 2001 as compared to the same time period in 2000.  This increase
was due to higher consulting and benefit consulting expenses.  Stationery and
supplies increased $27,494 or 19.2% for the nine months ended September 30, 2001
as compared to the same time period in 2000.  Contributions increased $30,581 or
43.5% for the nine months ended September 30, 2001 as compared to the same time
period in 2000.  This is due to additional expenses related to the 200th
anniversary celebration of the Corporation's main subsidiary Beverly National
Bank.  Marketing and public relations increased $65,712 or 23.6% for the nine
months ended September 30, 2001 as compared to the same time period in 2000.
This is due to additional expenses related to the 200th anniversary celebration
of the Corporation's main subsidiary Beverly National Bank. Other expenses
totaled $1,194,605 for the nine months ended September 30, 2001 as compared to
$1,072,644 for the same period in 2000.  The increase in other expenses reflects
an increase of $121,961 or 11.4%, which can be attributed to expense increases
in mortgage valuation, communications, electronic banking fees and ATM courier
services.

Income Taxes
------------

The income tax provision for the nine months ended September 30, 2001 totaled
$1,225,257 in comparison to an income tax provision of $1,189,000 for the same
time period in 2000.  This increase reflects an increase of taxable income.

Net Income
----------

Net income amounted to $2,032,136 for the nine months ended September 30, 2001
as compared to net income of $2,032,024 for the same period in 2000, which is an
increase of $112.  While earnings remained virtually unchanged when comparing
the first nine months of 2001 to the corresponding period in 2000, there was a
provision of $90,000 to the ALLL.  Thus increases in net interest income (an
increase of 8.5%) and increases in income from service charges and fees (an
increase of 19%) as well as fiduciary activities (an increase of 2.6%) were
offset by the $90,000 provision to the allowance in 2001 as compared to $-0- for
the same period in 2000.

                                       11
<PAGE>

                     THREE MONTHS ENDED SEPTEMBER 30, 2001
              AS COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2000

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

Net interest and dividend income for the three months ended September 30, 2001,
totaled $3,009,356 as compared to $2,964,961 for the time period in 2000.  This
increase was $44,395 or 1.5%.  Total interest and dividend income equaled
$4,593,086 for the three months ended September 30, 2001 as compared to
$4,481,615 for the same time period in 2000, an increase of $111,471 or 2.5%.
Loan income for the three months ended September 30, 2001, totaled $3,574,799 as
compared to $3,488,025 for the same time period in 2000.  This increase of
$86,774 or 2.5% reflects the increased level of loan production in a lower rate
environment. Interest and Dividends on Taxable Securities for the three months
ended September 30, 2001 totaled $834,857 as compared to $818,966 for the same
period in 2000.  This increase of $15,891 or 1.9% is attributable to a high
volume of investments called that were held at discount and were called because
of the lower interest rate environment.  The interest and dividends on tax
exempt securities decreased $9,585 or 51.7% during the third quarter of 2001 as
compared with the same quarter of 2000, due to lower balances invested.  The
other interest earned including Federal funds sold increased $16,469 or 10.6%
for the three months ended September 30, 2001 when compared to the same time
period in 2000 due to higher balances invested in a lower rate environment.

Deposit interest expense equaled $1,583,730 for the three months ended September
30, 2001, as compared to $1,516,654 for the same period in 2000. This increase
of $67,076 or 4.4% reflects the current strategy of managing the cost of funds
of the Bank.  The Bank generally pays competitive rates for its deposit base in
the local market.

Interest on borrowings totaled $-0- for the three months ended September 30,
2001 and 2000.

Provisions for Loan Losses
--------------------------

Credit risk is inherent in the business of extending loans.  The Bank maintains
an allowance or reserve for credit losses through charges to earnings.  The loan
loss provision for the three months ended September 30, 2001 was $45,000, no
provisions were made for the same period in 2000. The softening of the economy
and management's assessment of the potential for continued weakness in the
economy and the potential erosion of collateral values were the primary factors
which warranted the provision despite the current sound quality of the Bank's
portfolio. (See "Allowance for Loan Losses").



Non-interest Income
-------------------

Non-interest income totaled $763,875 for the three months ended September 30,
2001 as compared to $695,385 for three months ended September 30, 2000.  This is
an increase of $68,490 or 9.9%.  Income from fiduciary activities totaled
$394,235 for the three months ended September 30, 2001 as compared to

                                       12
<PAGE>

$408,249 for the three months ended September 30, 2000. This decrease of $14,014
or 3.4% can be attributed to decreased lower market value of which fees for
recurring trust business are based. Service charges on deposit accounts totaled
$127,573 for the three months ended September 30, 2001, as compared to $105,104
for the same time period in 2000. This increase of $22,469 or 21.4% is due to
increased service charges for electronic banking and higher number of accounts
serviced. Other deposit fees increased $10,775 or 18.4% for the three months
ended September 30, 2001 as compared to the same time period in 2000. Other
income for the three-month period ended September 30, 2001 totaled $131,324 as
compared to $125,055 for the three-month period ended September 30, 2000, an
increase of $6,269 or 5.0%. The mortgage servicing gain increased $42,991 for
the three months ended September 30, 2001 as compared to September 30, 2000.

Non-interest Expense
--------------------

Non-interest expense totaled $2,624,481 for the three months ended September 30,
2001, as compared to $2,334,918 for the same time period in 2000.  This increase
totaled $289,563 or 12.4%.  This increase is primarily attributed to additional
personnel, data processing costs and new delivery systems.  Salaries and
benefits totaled $1,413,880 for the three months ended September 30, 2001 and
$1,230,471 for the same time period in 2000.  This $183,409 or 14.9% increase is
due to additional personnel. Occupancy expense totaled $245,476 for the three
months ended September 30, 2001 as compared to $271,910 for the same period in
2000 which is a decrease of $26,434 or 9.7%. This decrease is due to fewer 2001
expenses for repairs and maintenance of facilities during the quarter.  The
costs of equipment totaled $157,826 for the three months ended September 30,
2001 as compared to $154,434 for the same period in 2000.  Increased expense
depreciation of equipment and maintenance costs created this situation.  Data
processing fees totaled $142,325 for the three months ended September 30, 2001
as compared to $139,567 for the corresponding time in 2000. This increase of
$2,758 or 2.0% is due to higher account volumes and additional data processing
products. Professional fees increased $17,299 or 36.4% due to higher consulting
and benefit consulting expenses. Stationery and supplies increased $55,503 for
the three months ended September 30, 2001 as compared to the same time period in
2000.  Contributions remained level for the three months ended September 30,
2001 as compared to the same time period in 2000. Marketing and public relations
increased $17,856 or 22.2% for the three months ended September 30, 2001 as
compared to the same time period in 2000. This is due to additional expenses
related to the 200th anniversary celebration of the Corporation's main
subsidiary Beverly National Bank. Other expenses totaled $387,337 for the three
months ended September 30, 2001 as compared to $352,199 for the same period in
2000.  This reflects an increase of $35,138 or 10.0%, which can be attributed to
an expense increase in mortgage valuation, communications, electronic banking
fees and ATM courier services.

Income Taxes
------------

The income tax provision for the three months ended September 30, 2001 totaled
$414,825 in comparison to an income tax provision of $457,600 for the same time
period in 2000.  This reflects an increase of taxable income.

                                       13
<PAGE>

Net Income
----------

Net income amounted to $688,925 for the three months ended September 30, 2001 as
compared to net income of $867,828 for the same period in 2000, which is a
decrease of $178,903 or 20.6%.  The earnings decrease is due to a weaker net
interest margin and higher non-interest expense for the quarter 2001 as compared
to the corresponding period in 2000.

Allowance for Loan Losses
--------------------------

The Bank formally determines the adequacy of the allowance on a quarterly basis.
This determination is based on assessment of credit quality or "risk rating" of
loans.  Loans are initially risk rated when originated.  If there is
deterioration in the credit, the risk rating is adjusted accordingly.

The allowance also includes a component resulting from the application of the
measurement criteria of Statements of Financial Accounting Standards No. 114,
Accounting by Creditors for Impairment of a Loan ("SFAS114").  Impaired loans
receive individual evaluation of the allowance necessary on a quarterly basis.
Impaired loans are defined in the Bank's Loan Policy when it is probable that
the Bank will not be able to collect all principal and interest due according to
the terms of the note.

These commercial loans and residential mortgages are considered to be impaired
under any one of the following circumstances: Non-accrual status; Loans over 90
days delinquent; Troubled debt restructures consummated after December 31, 1994;
or Loans classified as "doubtful", meaning that they have weaknesses which make
collection or liquidation in full, on the basis of currently existing facts,
conditions, and values, highly questionable and improbable.

The individual allowance for each impaired loan is based upon an assessment of
the present value of expected future cash flows discounted at the loan's
effective interest rate or the fair value of the collateral if the loan is
collateral dependent.

The loss factor applied as a general allowance is determined by a periodic
analysis of the Allowance for Loan Losses.  This analysis considers historical
loan losses and delinquency figures.  It also looks at delinquency trends.

Concentrations of credit and local economic factors are also evaluated on a
periodic basis.  Historical average net losses by loan type are examined and any
identified trends are assessed.  The Bank's loan mix over that same period of
time is also analyzed.  A loan loss allocation is made for each type of loan and
multiplied by the loan mix percentage for each loan type to produce a weighted
average factor.


September 30, 2001, the allowance for loan losses totaled $1,932,750
representing 544% of non-performing loans, which totaled $355,141 and
represented 0.2% of total loans of $176,660,261.  This compared to $1,912,696
representing 460% of non-performing loans which totaled $414,892 and represented
0.2% of total loans of $171,331,168 at December 31,2000.  A total

                                       14
<PAGE>

of $96,810 loans were charged off by the Bank during the nine months of 2001 as
compared to $61,658 charged off during the corresponding period in 2000. A
total of $26,863 was recovered of previously charged-off loans during the nine
months ended September 30, 2001 compared to $110,124 recovered during the
corresponding period of 2000. Management believes that the allowance for loan
losses is adequate. However, while management estimates loan losses using the
best available information, no assurances can be given that future additions to
the allowance will not be necessary based on changes in economic and real estate
market conditions, further information obtained regarding problem loans,
identification of additional problem loans and other factors, both within and
outside of management's control. Additionally, with expectations of the Bank to
continue to grow its loan portfolio, ongoing periodic provisions to the
allowance are likely to be necessary to maintain adequate coverage ratios.


Capital Resources
-----------------

As of September 30, 2001, the Corporation had total capital in the amount of
$24,359,764 as compared with $22,735,232 at December 31, 2000 which represents
an increase of $1,624,532 or 7.1%.  The Bank is required to maintain a Tier 1
capital at a level equal to or greater than 4.0% of the Bank's total assets.  As
of September 30, 2001, the Bank's Tier 1 capital amounted to 7.58% of total
assets.  At September 30, 2001, the Bank's ratio of risk-based capital to risk
weighted assets amounted to 13.27%, which satisfies the applicable risk based
capital requirements.  As of December 31, 2000, the Bank's Tier 1 capital
amounted to 7.71% of total assets and risk-based capital amounted to 13.33% of
total risk based assets.

The Corporation is required to maintain a Tier 1 capital at a level equal to or
greater than 4.0% of the Corporation's total assets.  As of September 30, 2001,
the Corporation's Tier 1 capital amounted to 8.57% of total assets.  At
September 30, 2001, the Corporation's ratio of risk-based capital to risk
weighted assets amounted to 14.82%, which satisfies the applicable risk based
capital requirements. As of December 31, 2000, the Corporation's Tier 1 capital
amounted to 9.41% of total assets and risk-based capital amounted to 15.19% of
total risk based assets.

The capital ratios of the Corporation and the Bank exceed all regulatory
requirements and both institutions are considered to be "well capitalized" by
their respective federal bank supervisory agencies.


Liquidity
---------

The primary function of asset/liability management is to assure adequate
liquidity and maintain an appropriate balance between interest-sensitive earning
assets and interest-bearing liabilities.  Liquidity management involves the
ability to meet the cash flow requirements of customers who may be either
depositors wanting to withdraw funds or borrowers needing assurance that
sufficient funds will be available to meet their credit needs.  The
Corporation's interest rate sensitivity management practices seek to provide
consistency in the maintenance of net interest margins and to foster the

                                       15
<PAGE>

sustainable growth of net interest income despite changing interest rates.

Certain marketable investment securities, particularly those of shorter
maturities, are the principal source of asset liquidity.  The Corporation
maintains such securities in an available for sale account as a liquidity
resource.  Securities maturing in one year or less amounted to approximately
$3,091,916 or 5.4% at September 30, 2001 of the investment securities portfolio,
and $8,967,187 at December 31, 2000, representing 16.1% of the investment
securities portfolio.  Assets such as federal funds sold, mortgages held for
sale, as well as maturing loans are also sources of liquidity.  The
Corporation's goals and general practices are to be substantially neutral with
respect to interest rate sensitivity and maintain a net cumulative gap at one
year of less than 10% of total earning assets. Changes in interest rates should
not dramatically impact income as assets and liabilities mature and reprice
concurrently.  The Corporation's current practices are consistent with these
objectives.

Forward Looking Statements
--------------------------

Certain statements contained in this report, including those contained in
Management's Discussion and Analysis or Plan of Operations and elsewhere, may be
forward looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and are thus prospective.  Such forward looking
statements are subject to risks, uncertainties and other factors which could
cause actual results to differ materially from future results expressed or
implied by such statements.  Such factors include, but are not limited to
changes in interest rates, regulation, competition and the local and regional
economy.

                                       16
<PAGE>

                          PART II - Other Information

Item 1.    Legal Proceedings                                         None

Item 2.    Changes in Securities and Use of Proceeds                 None

Item 3.    Defaults Upon Senior Securities                           None

Item 4.    Submission of Matters to a Vote of Security Holders       None

Item 5.    Other Information                                         None

Item 6.    Exhibits and Reports on Form 8-K

          a. Exhibits                                                None

          b. Reports on Form 8-K

               The Corporation did not file any reports or Form 8-K
               during the quarter ended September 30, 2001.

                                       17
<PAGE>

                                   SIGNATURES


In accordance with 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.


                                     BEVERLY NATIONAL CORPORATION
                                           (Registrant)



Date: November 9, 2001               By: /s/ Lawrence M. Smith
                                         -----------------------------------
                                         Lawrence M. Smith
                                         President, Chief Executive Officer



Date: November 9, 2001               By: /s/ Peter E. Simonsen
                                         ----------------------------------
                                         Peter E. Simonsen
                                         Treasurer, Principal Financial Officer

                                       18