UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

 (Mark One)

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

For the quarterly period ended   SEPTEMBER 30, 1996
                                 ------------------

      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
---   SECURITES EXCHANGE ACT OF 1934

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

Commission File Number:     0-23878
                            -------

                              BECKLEY BANCORP, INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)
 
           DELAWARE                                 55-0733525
--------------------------------------------------------------------------------
(State or other jurisdiction           (I.R.S. Employer Identification No.)
of incorporation or organization)

      200 MAIN STREET, BECKLEY, WEST VIRGINIA               25801
--------------------------------------------------------------------------------
     (Address of principal executive offices)             (Zip Code)

                                 (304) 252-6201
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                       N/A
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

      Indicate by check mark whether the  regristrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                                                       X  Yes         No
                                                      ---         ---

      Indicate the number of shares  outstanding of each of the issuer's classes
of common stock as of November 1, 1996:

                  Class                               Outstanding
                  -----                               -----------

       $.10 par value common stock                  601,465 shares






<PAGE>


                              BECKLEY BANCORP, INC.

                                      INDEX

PART I - FINANCIAL INFORMATION
------------------------------

      Item 1. - Financial Statements
      ------

            Consolidated Statements of Financial Position
            as of September 30, 1996 (Unaudited) and as of
            December 31, 1995                                                1

            Consolidated Statements of Income for the
            Three and Nine Months Ended September 30,
            1996 and 1995 (Unaudited)                                        2

            Consolidated Statements of Cash Flows for
            the Nine Months Ended September 30, 1996
            and 1995 (Unaudited)                                         3 - 4

            Consolidated Statements of Shareholders'
            Equity for the Nine Months Ended September
            30, 1996 and 1995 (Unaudited)                                    5

            Notes to Consolidated Financial
            Statements (Unaudited)                                       6 - 8


      Item 2. - Managements Discussion and Analysis of
      ------    Financial Condition and Results of
                Operations                                               9 - 15



PART II - OTHER INFORMATION

      Item 5. - Other Information                                       15 - 16
      -------

      Item 6. - Exhibits and Reports on Form 8-K                             16
      -------



SIGNATURES                                                                   17
----------

<PAGE>
        BECKLEY BANCORP, INC.
        PART I - FINANCIAL INFORMATION, Item 1. - Financial Statements
        CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
        (Amounts in Thousands)

<TABLE>
<CAPTION>

                                                           September 30,            December 31,
                                                               1996                     1995
                                                               ----                     ----
                                                            (Unaudited)                  *1
        ASSETS
<S>                                                      <C>                      <C>          
        Cash and due from banks                          $         337            $         406
        Interest bearing deposits in other banks                   939                      965
        Securities available for sale                            6,856                    5,021
        Securities held-to-maturity (market
           value of $3,993)                                         --                    3,993
        Collateralized mortgage obligations and
           other mortgage-backed securities
           available-for-sale                                   16,676                   17,954
        Loans receivable, net - Note 4                          18,938                   15,965
        Bank premises and equipment, at cost
           net of accumulated depreciation                         548                      441
        Federal Home Loan Bank stock - at cost                     172                      176
        Accrued interest receivable                                297                      253
        Other assets                                               212                       39
                                                         -------------            -------------
           TOTAL ASSETS                                         44,975                   45,213
                                                         =============            =============

        LIABILITIES AND
           STOCKHOLDERS' EQUITY
        LIABILITIES
        Deposit accounts                                        32,340                   33,427
        Short-term borrowings                                    1,000                       --
        Deferred income tax liability                               78                      215
        Accrued expenses and other liabilities                     511                      303
                                                         -------------            -------------
           TOTAL LIABILITIES                                    33,929                   33,945
                                                         -------------            -------------

        STOCKHOLDERS' EQUITY
        Preferred stock, $.01 par value,
           250,000 shares authorized, none issued                   --                       --
        Common stock, $.10 par value,
           1,250,000 shares authorized,
           601,465 shares issued and outstanding                    60                       60
        Additional paid-in-capital                               5,670                    5,659
        Retained earnings (substantially restricted)             5,348                    5,391
        Unearned ESOP shares, at cost                             (159)                    (185)
        Unearned MSBP shares, at cost                              (65)                     (83)
        Net unrealized gain on
           securities available for sale                           192                      426
                                                         -------------            -------------
           TOTAL STOCKHOLDERS' EQUITY                           11,046                   11,268
                                                         -------------            -------------
           TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY                       $      44,975            $      45,213
                                                         =============            =============
</TABLE>

        *1 - Derived from the audited financial statements.

        The accompanying notes are an integral part of these statements.

                                       1


<PAGE>
         BECKLEY BANCORP, INC.
         PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
         CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
         (Amounts in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>

                                                       Three Months          Nine Months
                                                          Ended                 Ended
                                                       September 30,        September 30,
                                                       1996     1995        1996     1995
                                                     -------  -------     -------  -------

         INTEREST AND DIVIDEND INCOME
<S>                                                  <C>      <C>         <C>      <C>    
            Loans, including certain fees            $   393  $   321     $ 1,132  $   903
            Investment securities                        158       90         313      357
            Collaterilized mortgage obligations and
               other mortgage-backed securities          208      307         784      834
            Interest bearing deposit accounts             13       49          60      134
            Dividends, FHLB and other                      7        6          19       18
                                                     -------  -------     -------  -------
               TOTAL INTEREST INCOME                     779      773       2,308    2,246
                                                     -------  -------     -------  -------

         INTEREST EXPENSE
            Deposit Accounts                             339      343       1,003      970
            Other                                         15       --          16       --
                                                     -------  -------     -------  -------
               TOTAL INTEREST EXPENSE                    354      343       1,019      970
                                                     -------  -------     -------  -------
         NET INTEREST INCOME                             425      430       1,289     1276

         Provision for losses on loans - Note 1           22       13          42       69
                                                     -------  -------     -------  -------
         NET INTEREST INCOME AFTER
            PROVISION FOR LOSSES ON LOANS                403      417       1,247    1,207
                                                     -------  -------     -------  -------

         NON-INTEREST INCOME
            Service charges on deposit accounts           10       12          34       35
            Gain on sale of investment securities         26       --          26       35
            Other income                                   5        4          12       10
                                                     -------  -------     -------  -------
               TOTAL NON-INTEREST INCOME                  41       16          72       80
                                                     -------  -------     -------  -------

         NON-INTEREST EXPENSE
            Salaries and employee benefits               136      127         400      389
            Occupancy and equipment expense               19       20          59       55
            Federal deposit insurance premiums           230       18         268       55
            Service bureau and other data processing      31       31          92       91
            Other                                         76       74         254      268
                                                     -------  -------     -------  -------
               TOTAL NON-INTEREST EXPENSE                492      270       1,073      858
                                                     -------  -------     -------  -------

         INCOME BEFORE INCOME TAXES                      (48)     163         246      429
                                                     -------  -------     -------  -------
         Provision for income taxes                      (17)      66          97      170
                                                     -------  -------     -------  -------
         NET INCOME                                  $   (31) $    97     $   149  $   259
                                                     =======  =======     =======  =======


         EARNINGS PER COMMON SHARE - Note 3          $ (0.05) $  0.16     $  0.25  $  0.44
                                                     =======  =======     =======  =======
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       2
<PAGE>
     BECKLEY BANCORP, INC.
     PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
     CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
     (Amounts in thousands)
<TABLE>
<CAPTION>

                                                     Nine Months Ended September 30,
                                                        1996                  1995
                                                   -----------           ----------- 

     OPERATING ACTIVITIES:
<S>                                                <C>                   <C>        
     Net Income                                    $       149           $       259

     Adjustments to reconcile net income to net
        cash provided by operating activities:
        Depreciation                                        17                    11
        (Accretion) and amortization, net                  (28)                 (130)
        Provision for losses on loans                       42                    69
        Increase (decrease) in deferred loan fees           (8)                    2
        Amortized ESOP benefits                             43                    29
        Amortized MSBP compensation                         15                    22
        Increase (decrease) in accrued income
           and other assets                               (217)                   35
        Increase (decrease) in accrued expenses
           and other liabilities                           208                  (164)
                                                   -----------           ----------- 
        NET CASH PROVIDED BY OPERATING
           ACTIVITIES                                      221                   133
                                                   -----------           ----------- 

     INVESTING ACTIVITIES:

     Purchases of collateralized mortgage obligations
        and other mortgage-backed securities
        -Available-for-sale                                 --                (3,920)
     Proceeds from the sale of collateralized
        mortgage obligations and other mortgage-
        backed securities
        -Available-for-sale                                 --                   993
     Principal repayments and redemptions on
        collateralized mortgage obligations and
        other mortgage-backed securities
        -Available-for-sale                                813                   548
     Purchases of investment securities
        -Available-for-sale                             (3,000)               (3,202)
        -Held-to-maturity                               (2,495)              (35,926)
     Proceeds from maturities or calls of
        investment securities
        -Available-for-sale                              1,250                 4,461
        -Held-to-maturity                                6,500                38,700
     Net increase in loans made to customers            (2,985)               (1,809)
     Redemption of Federal Home Loan Bank stock              4                    --
     Purchase of Federal Home Loan Bank stock               --                    (7)
     Additions to premises and equipment                  (124)                   --
                                                   -----------           ----------- 
        NET CASH PROVIDED (USED) BY INVESTING
           ACTIVITIES                              $       (37)          $      (162)
                                                   -----------           ----------- 
</TABLE>

     The accompanying notes are an integral part of these statements.

                                       3

<PAGE>

     BECKLEY BANCORP, INC.
     PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
     CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
     (Amounts in thousands)
<TABLE>
<CAPTION>

                                                    Nine Months Ended September 30,
                                                        1996                  1995
                                                   -----------           ----------- 

     FINANCING ACTIVITIES:

<S>                                                <C>                   <C>        
     Net increase/(decrease) in deposit accounts   $    (1,087)          $     1,176
     Proceeds from short-term borrowings                 1,000                    --
     Cash dividends paid on common stock                  (192)                 (143)
                                                   -----------           ----------- 
        NET CASH PROVIDED BY FINANCING
           ACTIVITIES                                     (279)                1,033
     Increase in cash and cash equivalents                 (95)                1,004
     Cash and cash equivalents, beginning
        of year                                          1,371                 1,254
                                                   -----------           ----------- 
        CASH AND CASH EQUIVALENTS,
           END OF PERIOD                           $     1,276           $     2,258
                                                   ===========           ===========


     SUPPLEMENTAL DISCLOSURE OF CASH FLOW
        INFORMATION

     Cash paid during the period for:

        Interest                                   $     1,003           $       964
                                                   ===========           ===========

        Income taxes                               $       291           $       147
                                                   ===========           ===========


     SUPPLEMENTAL SCHEDULE OF NONCASH
        INVESTING ACTIVITIES

     Automobiles acquired in settlement
        of loans                                   $        16           $        --
                                                   ===========           =========  

     Loans resulting from disposition of
        repossessed assets                         $        16           $        --
                                                   ===========           =========  

</TABLE>


     The accompanying notes are an integral part of these statements.

                                       4

<PAGE>
      BECKLEY BANCORP, INC.
      PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
      CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
      (Amounts in thousands)
<TABLE>
<CAPTION>
                                                                                                             Unrealized
                                                                                                                Gains/
                                                                                                             (Losses) on
                                                                                   Deferred     Unearned      Available
                                                  Common     Paid-in   Retained     ESOP          MSBP        For-Sale
                                                   Stock     Surplus   Earnings    Benefit     Compensation  Securities     TOTAL
                                                ----------  --------  ---------  ----------   ------------   ----------   ---------

      NINE MONTHS ENDED SEPTEMBER 30, 1995

<S>                                             <C>         <C>       <C>        <C>          <C>             <C>         <C>      
      Balance, December 31, 1994                $       60  $  5,541  $   5,133  $    (214)   $         0     $    (677) $   9,843

      Payment of $0.12 per share cash
         dividends on February 15, 1995
         and August 15, 1995                                               (143)                                              (143)

      Granting of 7,140 shares of common
         stock under the Management
         Stock Bonus Plan (MSBP)                                                                      (97)                     (97)

      Net Income, nine months ended
         September 30, 1995                                                 259                                                259

      Change in unrealized gain/(loss)
         on available-for-sale
         securities, net of tax                                                                                     963        963

      Change in unearned ESOP shares                               9                    20                                      29

      Change in unearned MSBP shares                                                                   14                       14
                                                ----------  --------  ---------  ---------  -------------     ---------  ---------
      Balance, September 30, 1995               $       60  $  5,550  $   5,249  $    (194) $         (83)    $     286  $  10,868
                                                ==========  ========  =========  =========  =============     =========  =========



      NINE MONTHS ENDED SEPTEMBER 30, 1996

      Balance, December 31, 1995                $       60  $  5,659  $   5,391  $    (185)    $      (83)    $     426  $  11,268

      Payment of $0.13 per share cash
         dividends on February 15, 1996
         and August 15, 1996                                               (151)                                              (151)

      Payment of $0.07 per share special
         cash dividend on February 15, 1996                                 (41)                                               (41)

      Net Income, nine months ended
         September 30, 1996                                                 149                                                149

      Change in unrealized gain/(loss)
         on available-for-sale
         securities, net of tax                                                                                    (234)      (234)

      Change in unearned ESOP shares                              12                    26                                      38

      Change in unearned MSBP shares                              (1)                                   18                      17
                                                ----------  --------  ---------  ---------     -----------    ---------  ---------

      Balance, September 30, 1996               $       60  $  5,670  $   5,348  $    (159)    $       (65)   $     192  $  11,046
                                                ==========  ========  =========  =========     ===========    =========  =========

</TABLE>

      The accompanying notes are an integral part of these statements.
 
                                      5

<PAGE>


BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION / Item 1.- (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      PRINCIPLES  OF  CONSOLIDATION:   The  unaudited   consolidated   financial
      statements   include  the   accounts  of  Beckley   Bancorp,   Inc.   (the
      "Corporation")  and Beckley Federal Savings Bank (the "Savings Bank"), its
      wholly  owned  subsidiary.   All  significant  intercompany  balances  and
      transactions have been eliminated in consolidation.

      BASIS OF ACCOUNTING:  The accompanying  unaudited  consolidated  financial
      statements were prepared in accordance with generally accepted  accounting
      principles for interim  financial  information and with  instructions  for
      Form 10-QSB and Article 10 of  Regulation  S-X.  Accordingly,  they do not
      include all  information and  disclosures  required by generally  accepted
      accounting  principles for complete  financial  statements.  However,  all
      normal  recurring  adjustments  have been made  which,  in the  opinion of
      management,  are  necessary  to the  fair  presentation  of the  financial
      statements.

      The results of  operations  for the nine month period ended  September 30,
      1996 are not  necessarily  indicative of the results which may be expected
      for the year ending December 31, 1996.

      LOANS: Loans are stated at the unpaid principal amount outstanding, net of
      unearned income,  deferred fees and the allowance for losses.  Interest on
      loans is  credited  to  income  as  earned  and  accrued,  only if  deemed
      collectible.  The Bank  discontinues  recognizing  accrued interest when a
      loan is specifically determined to be impaired or when payment of interest
      becomes  past due by more than ninety  days.  Unpaid  interest  previously
      accrued on these loans is reversed from income.  Non-accrual  loans may be
      restored to accrual status when principal and interest  become current and
      full payment of principal and interest is expected.

      Loan  origination  fees and  certain  costs  of  originating  and  closing
      mortgage loans are deferred and  recognized  over the life of the loans as
      an  adjustment  of yield.  These  amounts are not  considered  material to
      operations.

      ALLOWANCE FOR LOSSES ON LOANS:  The allowance for loan losses
      is maintained at a level believed adequate by management to
      absorb potential losses in the loan portfolio.  The amount of
      the allowance is based upon management's evaluation of the

                                       6
<PAGE>



NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

      collectibility of the loan portfolio. The amount of the allowance is based
      upon management's  evaluation of the collectibility of the loan portfolio,
      including  historical loan loss experience,  growth and composition of the
      loan  portfolio,  known  and  inherent  risks  in the  portfolio,  current
      economic  conditions,  adverse  situations which may affect the borrowers'
      ability to repay,  and the estimated  value of any underlying  collateral.
      The allowance is increased by provisions for loan losses  charged  against
      income, and reduced by charge-offs, net of recoveries.

      REAL  ESTATE  ACQUIRED IN  SETTLEMENT  OF LOANS:  Real estate  acquired in
      settlement of loans is recorded, on the date acquired, at the lower of the
      Bank's cost or management's estimate of its fair market value.  Subsequent
      adjustments  made to  reflect  any  decline  in value  below  management's
      original estimates are charged to current operations through the provision
      for losses on real estate owned.  Operating  expenses of such  properties,
      related income,  and gains and losses on their disposition are included in
      operations.  The Bank held no real estate  acquired in settlement of loans
      at September 30, 1996 or December 31, 1995.

NOTE 2.  EARNINGS PER SHARE

      Earnings  per share were  computed  using the weighted  average  number of
      common and common equivalent shares outstanding.  Common equivalent shares
      include  shares  issuable  upon exercise of dilutive  options  outstanding
      determined under the treasury stock method.  The Corporation  accounts for
      the shares  acquired by its ESOP in accordance  with Statement of Position
      93-6 and the shares acquired for its Management  Stock Bonus Plan ("MSBP")
      in a manner  similar to the ESOP shares;  shares  acquired by the ESOP and
      MSBP are not considered in the weighted average shares  outstanding  until
      the shares are  committed  for  allocation  or allocated to an  employee's
      individual account.

                                       7
<PAGE>



NOTE 3  LOANS RECEIVABLE

      Loans receivable at September 30, 1996 and December 31, 1995, consisted of
      the following:

                                                       (In thousands)
                                                   Sep 30,        Dec 31,
                                                    1996           1995
                                                ----------        -------
      First mortgage loans:
            One to four family dwellings        $   12,230     $  12,214
            Multi-family dwellings and
              non-residential property               1,064         1,237
            Construction                               142           103
      Loans secured by deposits                        564           617
      Non-mortgage loans, consumer
            and commercial                           5,255         2,081
                                                ----------      --------
      TOTAL LOANS                                   19,255        16,252

      Less:
            Allowance for losses                      (293)         (255)
            Net deferred loan fees and
                  reserve for uncollected
                  interest                             (24)          (32)
                                                -----------     --------

      LOANS RECEIVABLE, NET                     $   18,938      $ 15,965
                                                -----------     --------

      Non-accruing loans at September 30
            and December 31 were
            as follows:                         $       15      $     53
                                                -----------     --------


      In accordance  with the  provisions of FASB 114,  "Accounting by Creditors
      for  Impairment  of a Loan," and FASB 118,  "Accounting  by Creditors  for
      Impairment  of a Loan -  Income  Recognition  and  Disclosures,"  the Bank
      measures impaired loans on the present value of expected future cash flows
      discounted  at the  loan's  effective  interest  rate or,  as a  practical
      expedient,  at the loan's observable market price or the fair market value
      of the  collateral if the loan is  collateral  dependent.  Management  has
      evaluated the loan  portfolio and has  determined  that no impaired  loans
      existed at September 30, 1996 or December 31, 1995.

                                       8
<PAGE>



BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION
Item 2. - Management's Discussion and Analysis of Financial
          Condition and Results of Operations

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

Total  Assets  decreased  by $.23  million,  or 0.53%,  from  $45.21  million at
December 31, 1995 to $44.98  million at September  30, 1996.  This  decrease was
primarily   attributable   to   a   $3.99   million   decrease   in   securities
held-to-maturity  and  a  $1.23  million  decrease  in  collateralized  mortgage
obligations and other mortgage-backed securities. These decreases were partially
offset by a $1.84 million increase in securities  available-for-sale and a $2.97
million increase in loans receivable.

Cash and Cash Equivalents  decreased $0.09 million, or 6.93%, from $1.37 million
at December 31, 1995 to $1.28 million at September 30, 1996.

Securities  Available-for-Sale increased by $1.84 million, or 36.55%, from $5.02
million at December  31,  1995 to $6.86  million at  September  30,  1996.  This
increase was attributable to the purchase of $3.0 million of callable government
agency bonds which was partially offset by the call of a $1.0 million government
agency bond and the maturity of a $0.25 million government security.

Securities  Held-to-Maturity  decreased by $3.99  million,  or 100%,  from $3.99
million at December 31, 1995 to zero at September  30, 1996.  This  decrease was
attributable to the maturity of a short-term  government  agency  security.  The
proceeds  from this  security  were  primarily  invested  in  government  agency
securities classified as "available-for-sale" and in loans.

Collateralized   Mortgage  Obligations  and  Other  Mortgage-Backed   Securities
decreased $1.27 million,  or 7.12%,  from $17.95 million at December 31, 1995 to
$16.68 million at September 30, 1996.  This decrease was primarily the result of
a decrease in the market value of these securities in addition to the receipt of
scheduled and unscheduled principal payments.

Loans  Receivable  increased  $2.97 million,  or 18.62%,  from $15.96 million at
December 31, 1995 to $18.93  million at September  30, 1996.  This  increase was
primarily   the  result  of   approximately   $2.27  million  of  mortgage  loan
originations  and $5.05  million of  non-mortgage  loan  originations  which was
partially offset by principal  repayments on mortgage and non-mortgage  loans of
approximately  $4.35  million.  As a  result  of the  increased  loan  balances,
management  increased the  allowance  for losses on loans by $42,000  during the
nine month  period ended  September  30, 1996.  Charge-offs  for the  nine-month
period  totalled  $4,000.  The increase in the  allowance for losses on loans is
further  discussed  in  "Management's  Discussion  and  Analysis  of  Results of
Operations - Provision for Losses on Loans."

                                       9
<PAGE>




BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
(Continued)

Bank  Premises and Equipment  increased  $107,000,  or 24.26%,  from $441,000 at
December  31,  1995  to  $548,000  at  September  30,  1996.  This  increase  is
attributable to  architectural  and engineering fees incurred in connection with
the design and  planning of a new office  building.  The  increase is  partially
offset by accumulated  depreciation for the period. The proposed office building
and the estimated  costs and increases in  non-interest  expense is discussed in
detail under Part II, Item 5.

Total  Liabilities  decreased  $0.02 million,  or 0.05%,  from $33.95 million at
December 31, 1995 to $33.93  million at September  30, 1996.  This  decrease was
primarily due to a $1.09 million  decrease in deposit account balances which was
partially offset by a $1.0 million increase in short-term borrowings.

Deposit  Accounts  decreased  $1.09  million,  or 3.25%,  from $33.43 million at
December 31, 1995 to $32.34 million at September 30, 1996. This decrease was the
result  of  customer  withdrawals  in  excess  of  customer  deposits  which was
partially  offset by interest being credited to customer deposit accounts during
the nine month period ended September 30, 1996.

Short-term Borrowings increased $1.0 million, or 100%, from zero at December 31,
1995 to $1.0 million at  September  30, 1996.  The proceeds  were  invested in a
government agency security classified as "available-for-sale."

Stockholders'  Equity decreased $0.22 million,  or 1.97%, from $11.27 million at
December  31,  1995 to  $11.05  million  at June 30,  1996.  This  decrease  was
primarily  due to the payment of regular and special cash  dividends on February
15, 1996 of $116,000,  payment of regular  cash  dividends on August 15, 1996 of
$76,000 and a $234,000  decrease,  net of income  taxes,  in the market value of
securities  classified as  available-for-sale.  These  decreases  were partially
offset by the Corporation's net income for the nine-month period ended September
30, 1996 of $149,000  along with  decreases in the unearned ESOP and MSBP shares
due to accrued allocations.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED SEPTEMBER 30, 1996

Net Loss for the  three  month  period  ended  September  30,  1996 was  $31,000
compared  to net income of $97,000  for the same  period in 1995.  This loss was
primarily  due  to  a  one-time  special  premium   assessment  by  the  Savings
Association  Insurance Fund of approximately  $212,000.  See Part II, Item 5 for
detailed information relating to the special assessment.

                                       10
<PAGE>




BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED SEPTEMBER 30, 1996 (Continued)

Interest  Income for the three month period ended  September 30, 1996  increased
$6,000,  or 0.78%,  from $773,000 for the three month period ended September 30,
1995 to  $779,000  for the same  period in 1996.  As a result of  changes in the
composition  of interest  earning  assets,  interest  income on loans  increased
$72,000 and interest income on investment securities increased by $68,000. These
increases   were   partially   offset  by  decreases   in  interest   income  on
collateralized  mortgage  obligations and other  mortgage-backed  securities and
interest bearing deposit accounts of $99,000 and $36,000, respectively.

Interest  Expense for the three month period ended  September 30, 1996 increased
$11,000,  or 3.21%,  to $354,000 for the three month period ended  September 30,
1996 from  $343,000 for the same period in 1995.  The increase was primarily the
result  of  interest  expense  associated  with the  Savings  Bank's  short-term
borrowings.

Net  Interest  Income  for the three  month  period  ended  September  30,  1996
decreased  $5,000,  or 1.16%,  from  $430,000  for the three month  period ended
September 30, 1995 to $425,000 for the same period in 1996.

Provision  for Loan Losses was  increased  by $22,000 for the three month period
ended  September 30, 1996 compared to an increase of $13,000 for the same period
in 1995.  Management's  periodic evaluation of the adequacy of the allowance for
losses on loans, which included an evaluation of each delinquent loan, past loan
loss experience,  current economic conditions, volume, growth and composition of
the loan portfolio and other relevant  factors,  at September 30, 1996 indicated
that  the  allowance  should  be  increased  by  $22,000.  As  indicated  by the
evaluation,  management increased the allowance for losses on loans primarily to
reflect the inherent risk  associated with the growth in the  non-mortgage  loan
portfolio. Although, at September 30, 1996, management believed the allowance to
be adequate,  there can be no assurances that further additions will not be made
and that any losses  that may occur will not exceed the amount  provided  by the
allowance.

Non-Interest  Income  for the  three  month  period  ended  September  30,  1996
increased  $25,000,  or 156.25%,  to $41,000 from $16,000 for the same period in
1995.  This  increase  was the  result  of a  non-recurring  gain on the sale of
investment securities of $26,000 for the quarter ended September 30, 1996.

Non-Interest  Expense  for the three  month  period  ended  September  30,  1996
increased  $222,000,  or 82.22%,  from  $270,000  for the same period in 1995 to
$492,000 in 1996. This increase was primarily due to a one-time  special deposit
premium  insurance  assessment  of  $212,000.  See Part II, Item 5 for  detailed
information on the special assessment.

                                       11
<PAGE>




BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED SEPTEMBER 30, 1996 (Continued)

Provision  for income taxes for the three month period ended  September 30, 1996
shows a tax benefit of $17,000 compared to income tax expense of $66,000 for the
same period in 1995. This decrease is primarily the result of a net taxable loss
for the third quarter of 1996 compared to taxable  income for the same period of
1995.  No  provision  for deferred  taxes has been  recorded for the three month
periods ended September 30, 1996 and 1995 due to immateriality.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 1996

Net  Income  for the nine  month  period  ended  September  30,  1996  decreased
$110,000,  or 42.47%  from  $259,000  for the same period in 1995 to $149,000 in
1996. This decrease was primarily due to a one-time  special premium  assessment
by the Savings Association  Insurance Fund of approximately  $212,000.  See Part
II, Item 5 for detailed information relating to the special assessment.

Interest  Income for the nine month period ended  September  30, 1996  increased
$62,000,  or 2.76%,  to $2.31  million from $2.25 million for the same period in
1995. This was primarily due to changes in the  composition of interest  earning
assets  which  produced  higher  yields.  Interest  income  on  loans  increased
$229,000.  This  increase  was  partially  offset by a  decrease  of  $50,000 in
interest  income  from  investment  securities,  a $50,000  decrease in interest
income  from  collateralized  mortgage  obligations  and  other  mortgage-backed
securities and, a $74,000 decrease in interest income from deposit accounts with
other banks.

Interest  Expense for the nine month period ended  September 30, 1996  increased
$49,000,  or 5.05%,  to $1.02  million from $0.97 million for the same period in
1995.  Approximately  $33,000 of this  increase  was due to an  increase  in the
general level of interest rates paid on deposit accounts.  The remaining $16,000
of the increase was due to interest  expense  assoicated with the Savings Bank's
short-term borrowings.

Net Interest Income for the nine month period ended September 30, 1996 increased
$13,000,  or 1.02%,  to $1.29  million from $1.28 million for the same period in
1995. This was due to a $62,000  increase in interest income partially offset by
a $49,000 increase in interest expense.

Provision  for Loan Losses was  increased  by $42,000 for the nine month  period
ended  September 30, 1996 compared to an increase of $69,000 for the same period
in 1995.  Management's  periodic evaluation of the adequacy of the allowance for
losses on loans, which included an evaluation of each delinquent loan, past loan
loss experience,  current economic conditions, volume, growth and composition of
the

                                       12
<PAGE>




BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (Continued)

Provision for Loan Losses (Continued)
loan portfolio and other relevant factors,  at September 30, 1996, June 30, 1996
and March 31, 1996 indicated that the allowance  should be increased by $22,000,
$5,000 and $15,000,  respectively.  As indicated by the  evaluation,  management
increased the  allowance  for losses on loans  primarily to reflect the inherent
risk associated with the growth in the non-mortgage loan portfolio. Although, at
September 30, 1996, management believed the allowance to be adequate,  there can
be no  assurances  that further  additions  will not be made and that any losses
that may occur will not exceed the amount provided by the allowance.

Non-Interest Income for the nine month period ended September 30, 1996 decreased
$8,000,  or 10.00%,  to $72,000 from  $80,000 for the same period in 1995.  This
decrease  was  primarily  the  result  of a  non-recurring  gain on the  sale of
investment securities of $35,000 in 1995 compared to $25,000 in 1996.

Non-Interest  Expense  for the  nine  month  period  ended  September  30,  1996
increased $215,000, or 25.06%, from $0.86 million for the same period in 1995 to
$1.07 million in 1996.  This  increase was  primarily due to a one-time  special
deposit  premium  insurance  assessment  of  $212,000.  See Part II,  Item 5 for
detailed  information  on the special  assessment.  Also,  salaries and employee
benefit expense increased by $11,000. These increases were partially offset by a
$14,000 decrease in other non-interest expenses.

Income tax expense for the nine month period ended  September 30, 1996 decreased
$73,000,  or 42.94%,  from  $170,000  for the same  period in 1995 to $97,000 in
1996. This increase is primarily the result of an decrease in taxable income. No
provision for deferred  taxes has been recorded for the nine month periods ended
September 30, 1996 and 1995 due to immateriality.

LIQUIDITY AND CAPITAL RESOURCES

The Savings Bank is required to maintain  minimum  levels of liquid  assets,  as
defined by the Office of Thrift Supervision (OTS) regulations. This requirement,
which may be varied from time to time  depending  upon economic  conditions  and
deposit flows, is based upon a percentage of deposits and short-term borrowings.
The required  minimum ratio is currently 5%. The Savings Bank's  liquidity ratio
averaged  18.25% during  September  1996. The Savings Bank manages its liquidity
ratio to meet its funding needs,  including:  deposit outflows;  disbursement of
payments  collected from  borrowers for taxes and insurance;  and loan principal
disbursements.  The Savings  Bank also manages its  liquidity  ratio to meet its
asset and liability management objectives.

                                       13
<PAGE>



BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)

LIQUIDITY AND CAPITAL RESOURCES (Continued)

In addition to funds  provided  from  operations,  the  Savings  Bank's  primary
sources  of funds  are:  savings  deposits;  principal  repayments  on loans and
mortgage-backed  and  related  securities;  and  matured  or  called  investment
securities.  If necessary, the Savings Bank has the ability to borrow funds from
the Federal Home Loan Bank of Pittsburgh, although the need is not anticipated.

Scheduled loan  repayments and maturing  investment  securities are a relatively
predictable source of funds.  However,  savings deposit flows and prepayments on
loans and mortgage-backed and related securities are significantly influenced by
changes in market interest rates,  economic  conditions,  and  competition.  The
Savings  Bank  strives  to manage  the  pricing of its  deposits  to  maintain a
balanced stream of cash flows  commensurate  with its loan commitments and other
predictable funding needs.

The Savings  Bank  invests its excess  funds in an  interest  bearing  overnight
deposit  account with the Federal Home Loan Bank of  Pittsburgh.  This  provides
sufficient  liquidity to meet immediate loan  commitment and savings  withdrawal
funding requirements. When applicable, cash in excess of immediate funding needs
is  invested  into  longer-term  investments  and  mortgage-backed  and  related
securities  which typically earn a higher yield than overnight  deposits.  These
types of investments may qualify as liquid  investments  under OTS  regulations,
depending upon their stated maturities.

The Savings Bank  anticipates  that it will have  sufficient  funds available to
meet its current loan commitments and normal savings  withdrawals.  At September
30, 1996, the Savings Bank had  outstanding  loan  commitments  of $485,000.  In
addition,  it had certificates of deposit scheduled to mature within one year of
$15.65 million.  Management believes that a substantial portion of such deposits
will remain with the Savings Bank.

As required by the Financial  Institutions Reform,  Recovery and Enforcement Act
of 1989  (FIRREA),  the  Office of Thrift  Supervision  (OTS)  prescribed  three
separate  standards  of capital  adequacy.  The  regulations  require  financial
institutions to have minimum tangible capital equal to 1.50% of tangible assets;
minimum core capital  equal to 3.00% of adjusted  tangible  assets;  and minimum
risk-based capital equal to 8.00% of risk-weighted assets.

                                       14
<PAGE>



BECKLEY BANCORP, INC.
PART I - FINANCIAL INFORMATION, Item 2. - (Continued)

LIQUIDITY AND CAPITAL RESOURCES (Continued)

The following table sets forth the Savings Bank's regulatory capital position at
June 30, 1996, as compared to the minimum regulatory requirements:

                                    Amount         Percent of
                               (in thousands)   Adjusted Assets
                               --------------   --------------- 
Tangible Capital:1

      Actual                        $7,594           17.00%
      Required                         670            1.50%
                                    ------           ------
      Excess                        $6,924           15.50%
                                    ------           ------

Core Capital:1

      Actual                        $7,594           17.00%
      Required                       1,340            3.00%
                                    ------           ------
      Excess                        $6,254           14.00%
                                    ------           ------

Risk-Based Capital:2

      Actual                        $7,821           43.12%
      Required                       1,451            8.00%
                                    ------           ------
      Excess                        $6,370           35.12%
                                    ------           ------

      1 Based on tangible and core assets of $44,668
      2 Based on risk-weighted assets of $18,137

PART II - OTHER INFORMATION
Item 5. - Other Information

      New Office Building - As discussed in the Corporation's 1995 Annual Report
and the June 30, 1996 Form 10-QSB,  the Savings Bank is planning on constructing
a new office  building on a piece of property  currently owned which is adjacent
to its branch facility.  Due to unexpected delays in the  architectural  process
and the fast  approaching  winter weather season,  construction has been delayed
until Spring 1997.  After the first of the year, the Board will again review the
plans and anticipated  costs associated with the proposed building before giving
final approval to commence construction.

      As of  September  30, 1996,  the Savings  Bank had incurred  approximately
$112,000 in architectural and engineering fees associated with the new building.
Such fees will be  capitalized  as part of the cost of the  project.  Should the
project be terminated,  such fees will be charged to non-interest expense in the
period in which termination occurs.

                                       15
<PAGE>



BECKLEY BANCORP, INC.
PART II - OTHER INFORMATION

Item 5. - Other Information (continued)

      FDIC  Special  Premium  Assessment  -  As  previously   discussed  in  the
Corporation's 1995 Annual Report, there has been a significant deposit insurance
premium  disparity between the Savings  Association  Insurance Fund (the "SAIF")
and the Bank  Insurance  Fund (the  "BIF"),  both of which are  divisions of the
Federal Deposit Insurance Corporation (the "FDIC"). The Corporation, through the
Savings Bank has been paying an  insurance  premium to the SAIF equal to .23% of
its insured  deposits.  In September 1995, the FDIC lowered premiums for members
of the BIF,  primarily  commercial  banks, to a range of between .04% to .31% of
insured deposits. In January 1995, the total annual premium for most BIF members
was lowered to a flat fee of $2,000. Over the past year, several alternatives to
mitigate  the  effect of the  BIF/SAIF  insurance  premium  disparity  have been
proposed and considered.

      On September 30, 1996, the Deposit Insurance Funds Act was signed into law
by the President. As required under this law, the FDIC issued a one-time special
premium  assessment of 65.7 cents per $100 of insured deposits on all members of
the SAIF. This  assessment will be used to fully  capitalize the SAIF and, going
forward,  will  allow the FDIC to  significantly  reduce the  deposit  insurance
premiums being paid by all SAIF insured institutions.  It is expected that, as a
result of this one-time charge,  future assessments for the SAIF will be reduced
from 23 cents to  approximately  18 cents per $100 of insured  deposits  for the
fourth  quarter  of 1996 and  further  reduced  to 6.4 cents per $100 of insured
deposits  beginning  January 1, 1997 and continuing  through  December 31, 1999.
Beginning  January 1, 2000,  the rate is  projected  to decrease  further to 2.4
cents per $100 of insured  deposits.  Beginning January 1, 1997, it is projected
that  the  SAIF   assessment  of  6.4  cents  will  result  in  a  reduction  of
approximately 70 percent, or an estimated $53,000, in annual assessment expense,
which, over a four year period, is expected to offset the special assessment.

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

(a)   Exhibit 27 - Financial Data Schedule

(b)   No reports on Form 8-K were filed during the quarter for which this report
      is filed.

                                       16



<PAGE>


BECKLEY BANCORP, INC.

SIGNATURES

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

                                          BECKLEY BANCORP, INC.

Date:  November 1, 1996                   By:  /s/ Duane K. Sellards
      -------------------                     ----------------------
                                                DUANE K. SELLARDS
                                                President and Chief
                                                Executive Officer

Date:  November 1, 1996                   By:  /s/ Brian K. Pate
      -------------------                     ------------------
                                                BRIAN K. PATE
                                                Vice President and Chief
                                                Financial Officer

                                       17