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   MARCH 31, 1997
                                 -----------------------------------------------

        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 April 25, 1997:

                      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 March 31, 1997 (Unaudited) and as of
               December 31, 1996                                         1

               Consolidated Statements of Income for the
               Three Months Ended March 31, 1997 and
               1996 (Unaudited)                                          2

               Consolidated Statements of Cash Flows for
               the Three Months Ended March 31, 1997
               and 1996 (Unaudited)                                  3 - 4

               Consolidated Statements of Shareholders'
               Equity for the Three Months Ended March
               31, 1997 and 1996 (Unaudited)                             5

               Notes to Consolidated Financial
               Statements (Unaudited)                                6 - 8


        Item 2. - Managements Discussion and Analysis of
                      Financial Condition and Results of
                      Operations                                    9 - 13



PART II - OTHER INFORMATION


        Item 5. - Other Information                                     13
        -------


        Item 6. - Exhibits and Reports on Form 8-K                      13
        -------



SIGNATURES                                                              14



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


                                                                       March 31,               December 31,
                                                                          1997                     1996
                                                                    --------------           --------------
                                                                       (Unaudited)                  *1
        ASSETS
<S>                                                                 <C>                      <C>          
        Cash and due from banks                                     $         388            $         334
        Interest bearing deposits in other banks                            1,522                      916
        Securities available for sale                                       4,961                    5,997
        Securities held-to-maturity (market
           value of $997)                                                      --                      997
        Collateralized mortgage obligations and
           other mortgage-backed securities
           available-for-sale                                              16,289                   16,484
        Loans receivable, net - Note 4                                     20,403                   20,180
        Bank premises and equipment, at cost
           net of accumulated depreciation                                    545                      551
        Federal Home Loan Bank stock - at cost                                175                      172
        Accrued interest receivable                                           285                      268
        Other assets                                                           55                       65
                                                                    -------------            -------------
           TOTAL ASSETS                                                    44,623                   45,964
                                                                    -------------            -------------
        LIABILITIES AND
           STOCKHOLDERS' EQUITY
        LIABILITIES
        Deposit accounts                                                   32,975                   32,246
        Short-term borrowings                                                  --                    2,000
        Deferred income tax liability                                          90                      121
        Accrued expenses and other liabilities                                344                      315
                                                                    -------------            -------------
           TOTAL LIABILITIES                                               33,409                   34,682
                                                                    -------------            -------------

        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                                          5,678                    5,674
        Retained earnings (substantially restricted)                        5,438                    5,474
        Unearned ESOP shares, at cost                                        (142)                    (153)
        Unearned MSBP shares, at cost                                         (52)                     (59)
        Net unrealized gain on
           securities available for sale                                      232                      286
                                                                    -------------            -------------
           TOTAL STOCKHOLDERS' EQUITY                                      11,214                   11,282
                                                                    -------------            -------------
           TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY                                  $      44,623            $      45,964
                                                                    =============            =============
</TABLE>

        *1 - Derived from the audited financial statements.

        The accompanying notes are an integral part of these statements.


<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
                                                                                         Ended
                                                                                       March 31,
                                                                              -----------------------------
                                                                                 1997                1996
                                                                              --------            ---------

         INTEREST AND DIVIDEND INCOME
<S>                                                                           <C>                 <C>    
            Loans, including certain fees                                     $   419             $   363
            Investment securities                                                  78                  85
            Collateralized mortgage obligations and
               other mortgage-backed securities                                   267                 294
            Interest bearing deposit accounts                                      19                  25
            Dividends, FHLB and other                                               6                   6
                                                                              -------             -------
               TOTAL INTEREST INCOME                                              789                 773
                                                                              -------             -------
         INTEREST EXPENSE
            Deposit Accounts                                                      346                 332
            Other                                                                  16                  --
                                                                              -------             -------
               TOTAL INTEREST EXPENSE                                             362                 332
                                                                              -------             -------
         NET INTEREST INCOME                                                      427                 441

         Provision for losses on loans                                              2                  15
                                                                              -------             -------
         NET INTEREST INCOME AFTER
            PROVISION FOR LOSSES ON LOANS                                         425                 426
                                                                              -------             -------

         NON-INTEREST INCOME
            Service charges on deposit accounts                                    13                  11
            Other income                                                            4                   4
                                                                              -------             -------
  
               TOTAL NON-INTEREST INCOME                                           17                  15
                                                                              -------             -------

         NON-INTEREST EXPENSE
            Salaries and employee benefits                                        138                 137
            Occupancy and equipment expense                                        21                  22
            Federal deposit insurance premiums                                      5                  19
            Service bureau and other data processing                               31                  32
            Other                                                                 100                  90
                                                                              -------             -------
               TOTAL NON-INTEREST EXPENSE                                         295                 300
                                                                              -------             -------

         INCOME BEFORE INCOME TAXES                                               147                 141
                                                                              -------             -------
         Provision for income taxes                                                54                  55
                                                                              -------             -------
         NET INCOME                                                           $    93             $    86
                                                                              =======             =======

         EARNINGS PER COMMON SHARE - Note 3                                     $0.16               $0.15
                                                                              =======             =======

</TABLE>

         The accompanying notes are an integral part of these statements.




<PAGE>

     BECKLEY BANCORP, INC.
     PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
     CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
     (Amounts in thousands)
<TABLE>
<CAPTION>
                                                                Three Months Ended March 31,
                                                                1997                  1996
                                                            --------------        --------------

     OPERATING ACTIVITIES:

<S>                                                         <C>                   <C>        
     Net Income                                             $        93           $        86

     Adjustments to reconcile net income to net
        cash provided by operating activities:
        Depreciation                                                  6                     6
        (Accretion) and amortization, net                           (16)                  (16)
        Provision for losses on loans                                 2                    15
        Decrease in deferred loan fees                               (3)                   (4)
        Amortized ESOP benefits                                      16                    15
        Amortized MSBP compensation                                   6                     5
        Increase in accrued income and
           other assets                                              (7)                  (17)
        Increase (decrease) in accrued expenses and
           other liabilities                                         29                  (143)
                                                            -----------           -----------
        NET CASH PROVIDED BY OPERATING
           ACTIVITIES                                               126                   (53)
                                                            -----------           -----------
     INVESTING ACTIVITIES:

     Principal repayments and redemptions on
        collateralized mortgage obligations and
        other mortgage-backed securities
        - Available-for-sale                                        150                   225
     Purchases of investment securities
        - Available-for-sale                                         --                (1,000)
        - Held-to-maturity                                       (2,491)               (2,495)
     Proceeds from maturities or calls of
        investment securities
        - Available-for-sale                                      1,000                 1,000
        - Held-to-maturity                                        3,500                 6,500
     Net (increase) decrease in loans made
        to customers                                               (222)               (1,644)
     Redemption of Federal Home Loan Bank stock                      --                     4
     Purchase of Federal Home Loan Bank stock                        (3)                   --
     Additions to premises and equipment                             --                   (11)
                                                            -----------           -----------
        NET CASH PROVIDED (USED) BY INVESTING
           ACTIVITIES                                       $     1,934           $     2,579
                                                            ===========           ===========

</TABLE>

     The accompanying notes are an integral part of these statements.

<PAGE>


     BECKLEY BANCORP, INC.
     PART I - FINANCIAL INFORMATION, Item 1. - (Continued)
     CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
     (Amounts in thousands)
<TABLE>
<CAPTION>
                                                                Three Months Ended March 31,
                                                                 1997                  1996
                                                            -------------         -------------

     FINANCING ACTIVITIES:

<S>                                                         <C>                   <C>         
     Net increase/(decrease) in deposit accounts            $       729           $    (1,006)
     Proceeds from short-term borrowings                          1,000                    --
     Maturities of short-term borrowings                         (3,000)                   --
     Cash dividends paid on common stock                           (129)                 (116)
                                                            -----------           ----------- 
        NET CASH PROVIDED BY FINANCING
           ACTIVITIES                                            (1,400)               (1,122)
                                                            -----------           ----------- 
     Increase in cash and cash equivalents                          660                 1,404
     Cash and cash equivalents, beginning
        of year                                                   1,250                 1,371
                                                            -----------           ----------- 
        CASH AND CASH EQUIVALENTS,
           END OF PERIOD                                    $     1,910           $     2,775
                                                            ===========           ===========




     SUPPLEMENTAL DISCLOSURE OF CASH FLOW
        INFORMATION

     Cash paid during the period for:

        Interest                                            $       357           $       327
                                                            ===========           ===========

        Income taxes                                        $        --           $       101
                                                            ===========           ===========

</TABLE>




     The accompanying notes are an integral part of these statements.



<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
                                                           Additional              Deferred     Unearned      Available
                                                Common      Paid-in     Retained     ESOP         MSBP        For-Sale
                                                 Stock      Capital     Earnings   Benefit    Compensation   Securities     TOTAL
                                             ----------  -----------  ---------  ---------  -------------    ----------  ----------


 THREE MONTHS ENDED MARCH 31, 1996

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

 Payment of $0.13 per share regular
    cash dividend on February 15, 1996                                      (75)                                              (75)

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

 Net income, three months ended
    March 31, 1996                                                           86                                                86

 Change in unrealized gain/(loss)
    on available-for-sale
    securities, net of tax                                                                                          (50)      (50)

 Change in unearned ESOP shares                                    4                    11                                     15

 Change in unearned MSBP shares                                   (1)                                   6                       5
                                             ----------  -----------  ---------  ---------  -------------   -----------  --------

 Balance, March 31, 1996                     $       60  $     5,662  $   5,361  $    (174) $         (77)          376  $ 11,208
                                             ==========  ===========  =========  =========  =============   ===========  ========



 THREE MONTHS ENDED MARCH 31, 1997

 Balance, December 31, 1996                  $       60  $     5,674  $   5,474  $    (153) $         (59)          286  $ 11,282

 Payment of $0.14 per share regular
    cash dividend on February 18, 1997                                      (82)                                              (82)

 Payment of $0.08 per share special
    cash dividend on February 18, 1997                                      (47)                                              (47)

 Net income, three months ended
    March 31, 1997                                                           93                                                93

 Change in unrealized gain/(loss)
    on available-for-sale
    securities, net of tax                                                                                          (54)      (54)

 Change in unearned ESOP shares                                    5                    11                                     16

 Change in unearned MSBP shares                                   (1)                                   7                       6
                                             ----------  -----------  ---------  ---------  -------------  ------------  --------

 Balance, March 31, 1997                     $       60  $     5,678  $   5,438  $    (142) $         (52)          232  $ 11,214
                                             ==========  ===========  =========  =========  =============  ============  ========

</TABLE>



      The accompanying notes are an integral part of these statements


<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 three month  period  ended March 31,
        1997 are not necessarily indicative of the results which may be expected
        for the year ending December 31, 1997.

        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




<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 March 31, 1997 or December 31,
        1996.


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.
















<PAGE>



NOTE 3  LOANS RECEIVABLE

        Loans  receivable at March 31, 1997 and December 31, 1996,  consisted of
        the following:
<TABLE>
<CAPTION>

                                                                     (In thousands)
                                                               Mar 31,            Dec 31,
                                                               1997                 1996
                                                            ----------            -------
<S>                                                       <C>                   <C>      
        First mortgage loans:
               One to four family dwellings               $   13,070            $  13,102
               Multi-family dwellings and
                 non-residential property                      1,521                1,409
               Construction                                      188                   96
        Loans secured by deposits                                605                  616
        Non-mortgage loans, consumer
               and commercial                                  5,344                5,283
                                                          ----------            ---------
        TOTAL LOANS                                           20,728               20,506

        Less:
               Allowance for losses                             (305)                (303)
               Net deferred loan fees and
                      reserve for uncollected
                      interest                                   (20)                 (23)
                                                          -----------           ----------


        LOANS RECEIVABLE, NET                             $   20,403            $  20,180
                                                          -----------           ---------


        Non-accruing loans at March 31
               and December 31 were
               as follows:                                $       94            $      53
                                                          -----------           ---------
</TABLE>


        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 March 31, 1997 or December 31, 1996.




<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 $1.3 million,  or 2.8%, from $45.9 million at December
31,  1996 to $44.6  million  at March 31,  1997.  This  decrease  was  primarily
attributable to the maturities of $2.0 million in investment securities of which
the  proceeds  were used to repay  short  term  borrowings.  This  decrease  was
partially  offset by an increase in cash and cash  equivalents  of $0.7 million,
which resulted from an increase in deposit account balances.

Cash and Cash Equivalents increased $0.7 million, or 58.3%, from $1.2 million at
December 31, 1996 to $1.9 million at March 31, 1997. This increase was primarily
due to an increase in deposit account balances.

Investment  Securities decreased by $2.0 million, or 28.6%, from $7.0 million at
December  31,  1996 to $5.0  million  at  March  31,  1997.  This  decrease  was
attributable to the maturity of a $1.0 million  short-term  investment  security
classified  as  held-to-  maturity  and a  $1.0  million  short-term  investment
security classified as available-for-sale. The proceeds from the maturities were
used to repay short-term borrowings of $2.0 million.

Collateralized   Mortgage  Obligations  and  Other  Mortgage-Backed   Securities
decreased  $0.2  million,  or 1.2%,  from $16.5  million at December 31, 1996 to
$16.3 million at March 31, 1997.  This decrease was due to principal  repayments
on the securities.

Loans Receivable increased $0.2 million, or 1.0%, from $20.2 million at December
31, 1996 to $20.4  million at March 31, 1997.  This  increase was  primarily the
result of small increases in both mortgage and  non-mortgage  loans  receivable.
Management  increased  the  allowance  for losses on loans by $2,000  during the
quarter.  There were no  charge-offs  during the  quarter.  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."

Total  Liabilities  decreased  $1.3  million,  or 3.7%,  from  $34.7  million at
December  31,  1996 to $33.4  million  at March  31,  1997.  This  decrease  was
primarily  due to a $2.0 million  decrease in  short-term  borrowings  which was
partially offset by a $0.7 million increase in deposit account balances.








<PAGE>



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

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

Deposit Accounts increased $0.7 million, or 2.2%, from $32.2 million at December
31, 1996 to $32.9  million at March 31,  1997.  This  increase was the result of
approximately   $0.4  million  of  customer   deposits  in  excess  of  customer
withdrawals  and $0.3  million  interest  being  credited  to  customer  deposit
accounts during the quarter.

Short-term  borrowings  decreased  $2.0  million,  or 100%, to zero at March 31,
1997. This decrease resulted from the maturities of such borrowings.

Stockholders'  Equity  decreased  $0.1 million,  or 0.9%,  from $11.3 million at
December  31,  1996 to $11.2  million  at March  31,  1997.  This  decrease  was
primarily  due to the payment of regular and special cash  dividends on February
18, 1997 of $129,000 and a $54,000 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 quarter of $93,000.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED MARCH 31, 1997

Net income for the three month period ended March 31, 1997 increased  $7,000, or
8.1% from $86,000 for the same period in 1996 to $93,000 in 1997.  This increase
was primarily due to a decrease in non-interest expense.

Interest  income for the three  month  period  ended  March 31,  1997  increased
$16,000, or 2.1%, from $773,000 for the same period in 1996 to $789,000 in 1997.
This  increase  was  the  result  of  increased  interest  income  on  loans  of
approximately  $56,000.  This  increase was  partially  offset by a decreases in
interest income on collateralized mortgage obligations and other mortgage-backed
securities  of  approximately  $27,000  and in  interest  income  on  investment
securites of  approximately  $7,000 and on interest  bearing deposit accounts of
approximately  $6,000. The increases and decreases in the separate components of
interest income were primarily the result of changes in the average  balances of
the investments relating to each component.

Interest  expense for the three  month  period  ended  March 31, 1997  increased
$30,000, or 9.0%, from $332,000 for the same period in 1996 to $362,000 in 1997.
This increase was primarily due to interest expense on short-term  borrowings of
$16,000  and  increased  interest  expense on deposit  accounts  of $14,000 as a
result of a general  market  increase  in the  average  interest  rates  paid on
deposit accounts.


<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 MARCH 31, 1997 (Continued)

Net interest  income for the three month  period ended March 31, 1997  decreased
$14,000, or 3.2%, from $441,000 for the same period in 1996 to $427,000 in 1997.
This decrease was primarily due to a $30,000  increase in interest expense which
was partially offset by a $16,000 increase in interest income.

Provision  for loan losses was  increased  by $2,000 for the three month  period
ended March 31,  1997  compared to an increase of $15,000 for the same period in
1996.  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 March 31, 1997 indicated that
the  allowance  should be increased by $2,000.  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 March 31, 1997,  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  expense for the three month period ended March 31, 1996  decreased
$5,000,  or 1.7%, from $300,000 for the same period in 1996 to $295,000 in 1997.
This  decrease  was  primarily  due to a $14,000,  or 73.7%  decrease in federal
deposit  insurance  premiums.  The  decrease in deposit  insurance  premiums was
partially  offset  by a net  increase  of  $9,000  in the  other  components  of
non-interest expense.

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 16.7% during March,  1997. 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.






<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 March 31,
1997 the Savings Bank had outstanding loan  commitments of $6,000.  In addition,
it had  certificates  of deposit  scheduled  to mature  within one year of $16.0
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.









<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
March 31, 1997, as compared to the minimum regulatory requirements:

                                            Amount          Percent of
                                            ------          ----------
                                        (in thousands)   Adjusted Assets
                                        --------------   ---------------
Tangible Capital:1
        Actual                              $7,606           17.13%
        Required                               666            1.50%
                                            ------           ------
        Excess                              $6,940           15.63%
                                            ------           ------

Core Capital:1
        Actual                              $7,606           17.13%
        Required                             1,332            3.00%
                                            ------           ------
        Excess                              $6,274           14.13%
                                            ------           ------

Risk-Based Capital:2
        Actual                              $7,840           42.06%
        Required                             1,491            8.00%
                                            ------           ------
        Excess                              $6,349           34.06%
                                            ------           ------

        1 Based on tangible and core assets of $44,398
        2 Based on risk-weighted assets of $18,640


PART II - OTHER INFORMATION
Item 5. - Other Information

        Dividend  Payments - On January 14, 1997,  the Board of Directors of the
Corporation  declared a $0.14 per share regular semi-annual cash dividend and an
$0.08  per  share  special  cash  dividend  payable  on  February  18,  1997  to
stockholders  of record as of  January  31,  1997.  The  Corporation  expects to
continue  its policy of paying  regular  semi-annual  cash  dividends;  however,
further declarations of dividends will depend on a number of factors,  including
investment opportunities, capital requirements,  regulatory limitations, results
of operations and financial condition, tax considerations,  and general economic
conditions.


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

(a)     None

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





<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:  April 30, 1997                  By:  /s/ Duane K. Sellards
      -------------------                  ----------------------
                                              DUANE K. SELLARDS
                                              President and Chief
                                              Executive Officer


Date:  April 30, 1997                  By:  /s/ Brian K. Pate
      -------------------                  ------------------
                                              BRIAN K. PATE
                                              Vice President and Chief
                                              Financial Officer