United States Securities and Exchange Commission
                             Washington, D.C. 20552
                                   FORM 10QSB


{x}  QUARTERLY REPORT UNDER SECTION 13 OF 15 (d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

{ }  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCAHANGE
         ACT


For the transition period from                   to
                               -----------------    ------------------

                         Commission file Number 0-21885
                         ------------------------------

                            Advance Financial Bancorp
                            -------------------------

             (Exact name of registrant as specified in its charter)


West Virginia                                         55-0753533
-------------                                         ----------
(State or jurisdiction of                      (IRS Employer Identification No.)
  incorporation or organization)

                    1015 Commerce Street, Wellsburg, WV 26070
                    -----------------------------------------
                    (Address of principal executive offices)


                                 (304) 737-3531
                                 --------------
              (Registrant's telephone number, including area code)




Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act  during  the past 12 months  (or such  shorter
period that the registrant was required to file such reports),  and (2) has been
subjected to such filing requirements for the past 90 days. Yes  x   No
                                                                ---     ---

State the  number of shares  outstanding  for each of the  issuer's  classes  of
common equity as of the latest practicable date:

       Class:  Common Stock, par value $.10 per share
       Outstanding at November 1, 2000:   932,285

<PAGE>

                            Advance Financial Bancorp

                                      Index



                                                                           Page
                                                                          Number
                                                                          ------


Part I - FINANCIAL INFORMATION

        Item 1 - Financial Statements

                 Consolidated Balance Sheet ( Unaudited) as of
                    September 30, 2000 and June 30, 2000                     3

                 Consolidated Statement of Income (Unaudited)
                    For the Three Months ended September 30, 2000 and 1999   4

                 Consolidated Statement of Cash Flows (Unaudited)
                  For the Three Months ended September 30, 2000 and 1999     5

                 Notes to the Unaudited Consolidated Financial Statements    6


          Item 2 - Management's Discussion and Analysis                     7-10

Part II - OTHER INFORMATION

           Item 1 - Legal Proceedings                                        11

           Item 2 - Changes in Securities                                    11

           Item 3 - Default Upon Senior Securities                           11

           Item 4 - Submissions of Matters to a vote of Security Holders     11

           Item 5 - Other Information                                        11

           Item 6 - Exhibits and Reports on Form 8-K                         11

SIGNATURES                                                                   12

<PAGE>
                            ADVANCE FINANCIAL BANCORP
                      CONSOLIDATED BALANCE SHEET (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                       SEPTEMBER 30,            JUNE 30,
                                                                                          2000                    2000
                                                                                    -------------------    --------------------
<S>                                                                                    <C>                     <C>
Assets
     Cash and cash equivalents:
       Cash and amounts due from banks                                                      $1,010,139              $1,109,746
       Interest bearing deposits with other institutions                                     4,621,741               4,641,878
                                                                                    -------------------    --------------------
          Total cash and cash equivalents                                                    5,631,880               5,751,624
                                                                                    -------------------    --------------------
     Investment securities:
       Securities held to maturity (fair value of $1,201,155 and $1,187,625)                 1,249,737               1,249,672
       Securities available for sale                                                         8,327,684               8,234,637
                                                                                    -------------------    --------------------
          Total investment securities                                                        9,577,421               9,484,309
                                                                                    -------------------    --------------------
     Mortgaged-backed securities:
       Securities held to maturity (fair value of $1,928,082 and $2,027,016)                 1,959,881               2,089,010
       Securities available for sale                                                         1,538,108               1,556,172
                                                                                    -------------------    --------------------
          Total mortgage-backed securities                                                   3,497,989               3,645,182
                                                                                    -------------------    --------------------
     Loans held for sale                                                                       570,500                       -
     Loans receivable,  (net of allowance for loan losses
          of $699,899 and $682,103 )                                                       122,009,347             119,721,308
     Office properties and equipment, net                                                    4,053,468               4,070,295
     Federal Home Loan Bank Stock, at cost                                                     800,000                 800,000
     Accrued interest receivable                                                               859,792                 870,955
     Other assets                                                                              891,367                 920,767
                                                                                    -------------------    --------------------
          TOTAL ASSETS                                                                    $147,891,764            $145,264,440
                                                                                    ===================    ====================

Liabilities:
     Deposits                                                                             $120,423,421            $118,930,939
     Advances from Federal Home Loan Bank                                                   11,500,000              10,500,000
     Advance payments by borrowers for taxes and insurance                                     142,786                 203,320
     Accrued interest payable and other liabilities                                            467,483                 561,907
                                                                                    ------------------    --------------------
          TOTAL LIABILITIES                                                                132,533,690             130,196,166
                                                                                    -------------------    --------------------
Stockholders' Equity:
     Preferred stock, $.10 par value; 500,000 shares
         authorized, none issued                                                                     -                       -
     Common stock, $.10 par value; 2,000,000 shares
          authorized 1,084,450 shares issued                                                   108,445                 108,445
     Additional paid in capital                                                             10,330,970              10,329,885
     Retained earnings - substantially restricted                                            8,312,420               8,181,053
     Unallocated shares held by Employee Stock Ownership Plan (ESOP)                          (489,224)               (510,915)
     Unallocated shares held by Restricted Stock Plan (RSP)                                   (448,695)               (505,849)
     Treasury Stock (152,165 shares at cost)                                                (2,233,265)             (2,233,265)
     Accumulated other comprehensive loss                                                     (222,577)               (301,080)
                                                                                    -------------------    --------------------
          TOTAL STOCKHOLDERS' EQUITY                                                        15,358,074              15,068,274
                                                                                    -------------------    --------------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                      $147,891,764            $145,264,440
                                                                                    ===================    ====================
</TABLE>

   See accompanying notes to the unaudited consolidated financial statements.
                                      -3-

<PAGE>
                            ADVANCE FINANCIAL BANCORP
                  CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)


                                                            THREE MONTHS ENDED
                                                              SEPTEMBER 30,
                                                            2000         1999
                                                        -----------   ----------

INTEREST AND DIVIDEND INCOME
    Loans                                                $2,542,551   $2,261,906
    Investment securities                                   170,278      132,187
    Interest-bearing deposits with other institutions        46,745       53,701
    Mortgage-backed securities                               59,395       64,313
    Dividends on Federal Home Loan Bank Stock                14,579       10,710
                                                         ----------   ----------
         Total interest and dividend income               2,833,548    2,522,817
                                                         ----------   ----------
INTEREST EXPENSE
    Deposits                                              1,436,647    1,169,344
    Advances from Federal Home Loan Bank                    165,010      145,390
                                                         ----------   ----------
         Total interest expense                           1,601,657    1,314,734
                                                         ----------   ----------
NET INTEREST INCOME                                       1,231,891    1,208,083

Provision for loan losses                                    30,000       37,500
                                                         ----------   ----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES       1,201,891    1,170,583
                                                         ----------   ----------
NONINTEREST INCOME
    Service charges on deposit accounts                     105,580      104,964
    Gain on sale of loans                                     5,116          611
    Other income                                             72,414       59,894
                                                         ----------   ----------
         Total noninterest income                           183,110      165,469
                                                         ----------   ----------
NONINTEREST EXPENSE
    Compensation and employee benefits                      499,490      456,540
    Occupancy and equipment                                 179,432      161,841
    Professional fees                                        29,517       32,510
    Advertising                                              25,646       34,828
    Data processing charges                                  55,554       90,169
    Other expenses                                          236,993      219,342
                                                         ----------   ----------
         Total noninterest expenses                       1,026,632      995,230
                                                         ----------   ----------
Income before income taxes                                  358,369      340,822
Income taxes                                                141,697      135,725
                                                         ----------   ----------
NET INCOME                                               $  216,672   $  205,097
                                                         ==========   ==========
EARNINGS PER SHARE
         Basic                                           $      .25   $      .23
         Diluted                                         $      .25   $      .23


   See accompanying notes to the unaudited consolidated financial statements.
                                       -4-

<PAGE>
                          ADVANCE FINANCIAL BANCORP
              CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
                                                                        THREE MONTHS ENDED
                                                                           SEPTEMBER 30,
                                                                         2000         1999
                                                                     -----------   -----------
<S>                                                                <C>            <C>
OPERATING ACTIVITIES
     Net Income                                                     $   216,672    $   205,097
     Adjustments to reconcile net income to net cash provided by
        operating activities:
         Depreciation, amortization and accretion, net                  152,024        145,812
         Provision for loan losses                                       30,000         37,500
         Gain on sale of loans                                           (5,116)          (611)
         Origination of loans held for sale                          (1,440,984)      (170,000)
         Proceeds from the sale of loans                                875,600        170,611
         Decrease in other assets and liabilities                       (41,324)        (1,973)
                                                                    -----------    -----------
              Net cash (used in) provided by operating activities      (213,128)       386,436
                                                                    -----------    -----------
INVESTING ACTIVITIES
     Investment securities held to maturity:
         Purchases                                                            -       (249,453)
     Investment securities available for sale:
         Purchases                                                            -     (4,467,656)
         Maturities and repayments                                        1,130          2,005
     Mortgage-backed securities held to maturity:
         Maturities and repayments                                      128,589        114,076
     Mortgage-backed securities available for sale:
         Maturities and repayments                                       42,457        126,063
     Net increase in loans                                           (2,346,873)    (4,552,724)
     Purchases of premises and equipment                                (78,562)      (120,873)
                                                                    -----------    -----------
              Net cash used in investing activities                  (2,253,259)    (9,148,562)
                                                                    -----------    -----------
FINANCING ACTIVITIES
     Net increase in deposits                                         1,492,482      5,252,366
     Net increase in short term advances from FHLB                    1,000,000      2,500,000
     Net change in advances for taxes and insurance                     (60,534)       (70,850)
     Purchase of treasury stock                                            --         (197,700)
     Cash dividends paid                                                (85,305)       (87,630)

                                                                    -----------    -----------
              Net cash provided by financing activities               2,346,643      7,396,186
                                                                    -----------    -----------
              Decrease in cash and cash equivalents                    (119,744)    (1,365,940)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                      5,751,624      4,359,870
                                                                    -----------    -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                          $ 5,631,880    $ 2,993,930
                                                                    ===========    ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
     Cash paid during the period for:
         Interest on deposits and borrowings                        $ 1,716,612    $ 1,309,940
         Income taxes                                               $   169,930    $   135,255
</TABLE>

   See accompanying notes to the unaudited consolidated financial statements.
                                      -5-

<PAGE>
                            ADVANCE FINANCIAL BANCORP
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The  consolidated   financial  statements  of  Advance  Financial  Bancorp  (the
"Company"), includes its wholly-owned subsidiary, Advance Financial Savings Bank
(the  "Bank"),  and  its  wholly-owned  subsidiary,  Advance  Financial  Service
Corporation  of  West  Virginia.  All  significant   intercompany  balances  and
transactions have been eliminated.

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with the  instructions  to Form  10-QSB and,  therefore,  do not
necessarily  include all information that would be included in audited financial
statements.  The information  furnished reflects all adjustments,  which are, in
the  opinion  of  management,  necessary  for a fair  statement  of  results  of
operations.  All such adjustments are of a normal recurring nature.  The results
of  operations  for the interim  periods are not  necessarily  indicative of the
results  to be  expected  for the fiscal  year ended June 30,  2001 or any other
interim period.

These statements should be read in conjunction with the consolidated  statements
of and for the year ended June 30, 2000 and related  notes which are included on
the Form 10-KSB (file no. 0-21885)

NOTE 2 - EARNINGS PER SHARE

There were no  convertible  securities,  which  would  affect the  numerator  in
calculating  basic and  diluted  earnings  per share;  therefore,  net income as
presented on the Consolidated Statement of Income will be used as the numerator.
The following  table sets forth the composition of the  weighted-average  common
shares   (denominator)  used  in  the  basic  and  diluted  earnings  per  share
computation.

                                                 Three Months Ended
                                                    September 30
                                                 2000          1999
                                             ------------   -----------

Weighted-average common shares outstanding     1,084,450     1,084,450
Average treasury stock shares                   (152,165)     (114,165)
Average unearned ESOP and RSP shares             (57,048)      (63,844)
                                              ----------    ----------

Weighted -average common shares and
    common stock equivalents used to
    calculate basic earnings per share           875,237       906,441

Additional common stock equivalents
    (stock options) used to calculate
    diluted earnings per share                         -             -
                                              ----------    ----------
Weighted-average common shares and
    Common stock equivalents used
    To calculate diluted earnings per share      875,237       906,441
                                              ==========    ==========


NOTE 3 - COMPREHENSIVE INCOME

Other accumulated comprehensive loss consists solely of net unrealized gains and
losses on available for sale  securities.  For the three months ended  September
30, 2000,  comprehensive  income  totaled  $295,175.  For the three months ended
September 30, 1999, comprehensive income totaled $163,831.

                                       -6-
<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS

     The Private  Securities  Litigation Reform Act of 1995 contains safe harbor
provisions regarding forward-looking  statements.  When used in this discussion,
the words  "believes",  "anticipates",  "contemplates",  "expects",  and similar
expressions are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties, which could cause actual results
to differ materially from those projected. Those risks and uncertainties include
changes in interest  rates,  risks  associated with the ability to control costs
and  expenses,  Year 2000  issues,  and  general  economic  conditions.  Advance
Financial  Bancorp (the "Company")  undertakes no obligation to publicly release
the results of any revisions to those  forward-looking  statements  which may be
made to reflect events or circumstances  after the date hereof or to reflect the
occurrence of unanticipated events.

     The Company conducts no significant business or operations of its own other
than holding all of the outstanding  stock of the Advance Financial Savings Bank
(the "Bank"). As a result, references to the Company generally refer to the Bank
unless the context indicates otherwise.

COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30,2000 AND JUNE 30, 2000
------------------------------------------------------------------------

Total assets increased by approximately  $2,627,000 to $147,891,764 at September
30, 2000,  from  $145,264,440 at June 30, 2000. The increase is primarily due to
increased  loan demand.  Deposits  and Advances  from the Federal Home Loan Bank
"FHLB", which increased by $1,492,000 and $1,000,000, respectively, were used to
fund the increased loan demand.

Net loans  receivable  increased by $2,288,000 to  $122,009,347 at September 30,
2000, from  $119,721,308 at June 30, 2000. The increase in loans was spread over
the entire loan  portfolio.  Loans secured by 1-4 family  residences,  including
construction, increased by $400,800 due to demand for adjustable rate mortgages.
Non-residential  mortgage loans, including construction,  increased $946,400 due
to strong demand for the Company's competitively priced adjustable rate mortgage
products.  Automobile loans increased $805,400 due principally to increased loan
activity written by automobile  dealership customers of the Company.  Commercial
loans  increased by $458,500 due  principally to increased  demand from existing
customers. See "Risk Elements".

Deposits  increased by  $1,492,000  to  $120,423,421  at September 30, 2000 from
$118,930,939  at June 30, 2000.  Within the deposit line item,  certificates  of
deposit  increased by  $2,511,000  to  $78,522,000  at  September  30, 2000 from
$76,011,000 at June 30, 2000. This increase is primarily the result of a current
certificate of deposit  special.  The current  special has an annual  percentage
rate of 6.66% on seven (7) and  eleven  (11)  month  certificates,  and 6.92% on
thirteen (13) and nineteen (19) month certificates. The seven and nineteen month
maturity areas have been equally popular with the Company's customers.  There is
a noticeable trend of customers withdrawing money from their money market demand
accounts and placing it in the seven-month certificate special. Savings deposits
and demand  deposits  decreased  $242,000 and  $777,000,  respectively,  for the
three-month  period ended  September 30, 2000. The demand  deposit  decrease was
primarily the net result of the current short-term certificate special discussed
above.

Advances from the FHLB increased $1,000,000 to $11,500,000 at September 30, 2000
from  $10,500,000  at June  30,  2000.  This  increase  is the net  result  of a
$2,500,000  advance that matured in August 2000 and a new $3,500,000  commitment
funded in  September  2000 with a maturity  of March  2001.  The new  advance is
priced at 1 month LIBOR less 6 basis points,  currently 6.56%, while the matured
advance of August 2000 had a fixed rate of 5.94%. The additional funds were used
to fund current loan demand.

Equity capital increased by approximately,  $290,000 to $15,358,074 at September
30,  2000  from  $15,068,274  at June 30,  2000.  Net  income of  $216,700,  the
recognition of shares in the Employee Stock Ownership Plan and Restricted  Stock
Plan of $79,000,  and a decrease in the net  unrealized  loss on  securities  of
$79,000 were offset by the payment of cash dividends of $85,000.

                                       -7-
<PAGE>

COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------------------------------------------------------
2000 AND 1999
-------------

Net interest  income  increased  $24,000 or 1.97%,  to $1,232,000  for the three
months ended September 30, 2000 from $1,208,000 for the comparable  period ended
1999. The increase in net interest income resulted primarily from an increase in
the average  volume of the  underlying  principle  balances in interest  earning
assets and  liabilities.  The net  interest  spread for the three  months  ended
September 30, 2000 decreased to 3.04% from 3.29% for the comparable period ended
1999. The average yield on interest  earning assets increased by 30 basis points
to 8.18% for the three  months  ended  September  30,  2000,  from 7.88% for the
comparable  period ended 1999.  The average cost of funds  increased by 55 basis
points to 5.14% for the three months ended September 30, 2000 from 4.59% for the
comparable period ended 1999.

Interest and dividend income  increased  $311,000 or 12.32% for the three months
ended  September 30, 2000 compared to the same period ended 1999.  This increase
was primarily due to an increase in earnings on loans of $281,000 as the average
principle  balance  increased  $9,071,000 to  $120,805,000  for the period ended
September 30, 2000, from  $111,734,000 for the comparable 1999 period.  Interest
and dividend  income on  investments  and  interest-bearing  deposits with other
financial  institutions  increased  approximately  $30,000 as average  principal
balances increased  $1,288,000 to $17,675,000 for the period ended September 30,
2000, from $16,387,000 for the comparable 1999 period.

Interest  expense  increased  $287,000  or 21.82%,  for the three  months  ended
September  30, 2000  compared to the same period ended 1999.  This  increase was
primarily  due to an increase in interest on deposits of $267,000 as the average
balance increased  $9,413,000 to $113,901,000 for the period ended September 30,
2000,  from  $104,488,000  for the comparable 1999 period.  Interest  expense on
advances  increased  $20,000  as  the  average  balance  increased  $417,000  to
$10,667,000 for the period ended  September 30, 2000,  from  $10,250,000 for the
comparable 1999 period.

Noninterest income increased $18,000 or 10.66%, to $183,000 for the three months
ended  September  30, 2000 from $165,000 for the  comparable  period ended 1999.
This increase was primarily the result of an increase in gains on sales of fixed
rate mortgage loans and related servicing rights

Noninterest  expense  increased  $31,000 or 3.16%,  to $1,026,000  for the three
months ended  September 30, 2000,  from $995,000 for the comparable 1999 period.
For the three-month  period ended September 30, 2000,  compensation and employee
benefits  increased $43,000 or 9.41%, due to the hiring of additional  employees
for loan collection and data processing,  as well as, additional costs of living
increases  for all  full  time  employees.  Occupancy  and  equipment  increased
$18,000,  due primarily to an increase in combined  equipment  depreciation  and
maintenance  of  $17,000  directly  related  to  the  in-house   item-processing
department.  Data processing  charges decreased $35,000 due to the completion of
the conversion to in house item processing in January 2000. The decrease in data
processing  is offset by similar  increases in  "occupancy  and  equipment"  for
maintenance   and   depreciation   and  in  "other   expenses"   for   supplies,
communications and postage,  which increased $11,000 for the three-month period.
Anticipated  future  decreases  in data  processing  will be offset  by  similar
increases in these line items.  Other expenses  increased  $18,000 due primarily
to, supplies, communications and postage as discussed above.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

As of  September  30,  2000,  the  Company  had  commitments  to fund  loans  of
approximately  $1,391,000.  These loan  commitments are expected to be funded by
October 31, 2000.

Management  monitors both the Company's and the Bank's total risk-based,  Tier I
risk-based  and Tier I leveraged  capital  ratios in order to assess  compliance
with regulatory guidelines. At September 30, 2000, both the Company and the Bank
exceeded the minimum  risk-based and leveraged capital ratio  requirements.  The
Company's and the Bank's total risk-based, Tier I risk-based and Tier I leverage
ratios are 15.88%, 15.19%, 10.52% and 15.08%,  14.40%, and 9.91%,  respectively,
at September 30, 2000.

                                       -8-
<PAGE>

RISK ELEMENTS
-------------

The table below presents information  concerning  nonperforming assets including
nonaccrual loans,  renegotiated loans, loans 90 days past due, other real estate
loans and repossessed  assets.  A loan is classified as nonaccrual  when, in the
opinion of management, there are serious doubts about collectibility of interest
and  principal.  At the time the  accrual of interest  is  discontinued,  future
income is recognized  only when cash is received.  Renegotiated  loans are those
loans which terms have been  renegotiated  to provide a reduction or deferral of
principal or interest as a result of the deterioration of the borrower.

                                                     September 30,     June 30,
                                                          2000           2000
                                                         ------         ------

Loans on a nonaccrual basis                              $  490         $  304
Loans past due 90 days or more and still accruing           302            189
                                                         ------         ------
         Total nonperforming loans                          792            493
                                                         ------         ------

Other real estate                                           407            407
Repossessed assets                                           50             21
                                                         ------         ------
         Total nonperforming assets                      $1,249         $  921
                                                         ------         ------

Nonperforming loans as a percentage of total net loans     0.65%          0.41%
                                                         ======         ======

Nonperforming assets as a percentage of total assets       0.84%          0.63%
                                                         ======         ======

Allowance for loan losses to nonperforming loans          88.37%        138.36%
                                                         ======         ======


Nonaccrual loans consist of $475,000 in one to four family residential mortgages
and $15,000 in a  non-residential  real estate  mortgage at September  30, 2000.
Management regularly performs an analysis to identify the inherent risks of loss
in its loan portfolio. This evaluation includes evaluations of concentrations of
credit,  past  loss  experience,   current  economic   conditions,   amount  and
composition of loan portfolio  (including loans being specifically  monitored by
management),  estimated fair value of underlying  collateral,  loan  commitments
outstanding, delinquencies, and other information available at such times.

The Company monitors its allowance for loan losses and makes future  adjustments
to the allowance  through the  provision for loan losses as economic  conditions
dictate. Management continues to offer a wide variety of loan products. Although
the Company maintains its allowance for loan losses at a level that it considers
to be adequate to provide for the inherent risk of loss in its portfolio,  there
can be no assurance that future losses will not exceed estimated amounts or that
additional provisions for loan losses will not be required in future periods due
to the higher degree of credit risk included in the loan portfolio.


                                       -9-
<PAGE>

The following is a breakdown of the loan portfolio  composition at September 30,
2000 and June 30, 2000:

                                       September 30,    June 30,
                                           2000           2000
                                       ------------   ------------
Mortgage loans:
           1-4 family                  $ 62,405,903   $ 62,163,992
           Multi-family                   5,412,798      5,469,906
           Non-residential               24,978,435     24,543,795
           Construction                   3,912,441      3,241,801
                                       ------------   ------------
                                         96,709,577     95,419,494
                                       ------------   ------------
Consumer Loans:
           Home Improvement               1,450,271      1,439,387
           Automobile                    11,708,814     10,903,416
           Share loans                    1,448,491      1,406,328
           Other                          2,797,814      2,675,498
                                       ------------   ------------
                                         17,405,390     16,424,629
                                       ------------   ------------

                                       ------------   ------------
Commercial Loans                         10,958,775     10,500,256
                                       ------------   ------------

Less:
           Loans in process               2,235,258      1,812,877
           Net deferred loan fees           129,238        128,091
           Allowance for loan losses        699,899        682,103
                                       ------------   ------------
                                          3,064,395      2,623,071
                                       ------------   ------------
                Total                  $122,009,347   $119,721,308
                                       ============   ============


                                      -10-

<PAGE>

PART II - OTHER INFORMATION


Item 1 - Legal Proceedings

                NONE

Item 2 - Changes in securities

                NONE

Item 3 - Defaults upon senior securities

                NOT APPLICABLE

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)    List of Exhibits:

       3 (i)  Certificate of Incorporation of Advance Financial Bancorp *
       3 (ii) Amended Bylaws of Advance Financial Bancorp *****
       4 (i)  Specimen Stock Certificate *
       4 (ii) Shareholders Rights Plan **
       10     Employment Agreement between the Bank and Stephen M. Gagliardi ***
       10.1   1998 Stock Option Plan ****
       10.2   Restricted Stock Plan and Trust Agreement ****
       27     Financial Data Schedule  (electronic filing only)

--------------------------------------------------------------------------------
     (b)    None

*       Incorporated  by  reference  to  the  Registration Statement on Form S-1
        (File No. 333-13021) declared effective by the SEC on November 12, 1996.

**      Incorporated  by  reference  to the Form 8-K ( File No.  0-21885)  filed
        July 17, 1997.

***     Incorporated  by  reference  to  the June 30,  1997  Form  10K-SB  (File
        No. 0-21885) filed September 23, 1997.

****    Incorporated by reference to the proxy statement for the Special Meeting
        of  the  Stockholders  on  January 20, 1998  and  filed with the SEC  on
        December 12, 1997.

*****   Incorporated  by  reference  to  the  June 30,  1999  Form  10KSB  (File
        No. 0-21885) filed on . September 28, 1999.



                                      -11-

<PAGE>

SIGNATURES

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


                                       Advance Financial Bancorp

Date:  November 6, 2000                By: /s/Stephen M. Gagliardi
                                           -------------------------------------
                                           Stephen M. Gagliardi
                                           President and Chief Executive Officer

Date:  November 6, 2000                By: /s/Stephen M. Magnone
                                           -------------------------------------
                                           Stephen M. Magnone
                                           Vice President and CFO


                                      -12-