UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, DC  20549

                            FORM 10-QSB

(x)  Quarterly report pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934 for the quarterly period
     ended September 30, 2000 or

( )  Transition report pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934 for the transition period
     from ____________________.

                            No. 000-24601
                       (Commission File Number)

                           PSB BANCORP, INC.
       (Exact Name of Registrant as Specified in its Charter)

      Pennsylvania                             23-2930740
 (State of Incorporation)              (IRS Employer ID Number)

     11 Penn Center Suite 2601                     19103
1835 Market Street, Philadelphia, PA            (Zip Code)
(Address of Principal Executive Offices

                             (215) 979-7900
                     (Registrant's Telephone Number)

Securities registered pursuant to Section 12(b) of the Exchange
Act:  none

Securities registered pursuant to Section 12(g) of the Exchange
Act: Common Stock, no par value per share.

Check whether the issuer (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act 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.
Yes    X   No

Number of shares outstanding as of September 30, 2000

COMMON STOCK (No Par Value)                 4,455,007
    (Title of Class)                  (Outstanding Shares)



                       PSB Bancorp, Inc.
                         FORM 10-QSB

            For the Quarter Ended September 30, 2000

                            Contents

PART I.  FINANCIAL INFORMATION                     Page No.

Item 1.  Financial Statements

         Consolidated Statement of Financial
         Condition as of September 30, 2000
         (Unaudited) and December 31, 1999              3

         Consolidated Statement of Income
         (Unaudited) for the Three Month and
         Nine Month Periods Ended September 30,
         2000 and 1999.                                 5

         Consolidated Statement of Comprehensive
         Income (Unaudited) for the Three Month
         and Nine Month Periods Ended September 30,
         2000 and 1999.                                 7

         Consolidated Statement of Cash Flows
         (Unaudited) for the Nine Month Periods
         Ended September 30, 2000 and 1999.             9

         Note to Consolidated Financial Statements      11

         Management's Discussion and Analysis
         of Financial Condition and Results of
         Operations                                     15

Item 2.  OTHER INFORMATION

         Exhibits and Reports on Form 8-K

PART II.

Item 6.                                                 27



Part I  Financial Information

Item I  Financial Statements

                        PSB BANCORP, INC
            CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
                         (In thousands)

                                      September 30,  December 31,
                                          2000          1999
                                       (unaudited)     (audited)
ASSETS
  Cash and due from banks                $  5,185      $  7,921
  Interest bearing deposits with banks      7,887         9,354
  Investment securities -
    available-for-sale, at fair value      23,934        22,685
  Mortgage-backed securities
    available-for-sale, at fair value      42,843        45,951
  Mortgage-backed securities
    held-to-maturity (fair value of
    $943 and $1,032)                          943         1,006
  Investment securities
    held-to-maturity (fair value of
    $3,836 and $3,779)                      4,000         4,000
  Investment in BankZip.Com                 1,250         2,500
  Investment in Iron Bridge                 1,663         1,250
  Loans, less allowance for loan
    losses of $1,349 and $1,231,
    respectively                          160,820       167,787
  Loans held for sale                       7,927         8,221
  Property acquired through loan
    foreclosure actions, net                1,169         1,047
  Premises and equipment, net               1,817         1,692
  Accrued interest receivable               2,551         2,446
  Prepaid corporate taxes                     773           784
  Deferred tax asset                        2,426         1,459
  Other assets                              1,123         1,505

    TOTAL ASSETS                         $266,311      $279,608
                                         ========      ========

LIABILITIES
  Deposits
    Non-interest bearing                   16,301        14,720
    Interest bearing                      159,090       178,490
                                          175,391       193,210

  Borrowed Funds                           38,000        34,000
  Securities purchased under
    agreements to resell                   13,340        15,640
  Income taxes payable                        695            45
  Accrued interest payable                    646           515
  Other liabilities                           887           151

    Total liabilities                     228,959       243,561

SHAREHOLDERS' EQUITY
  Common stock-authorized, 15,000,000
    shares no par value issued and
    outstanding, 4,455,007                      0             0
  Treasury Stock                             (489)            0
  Additional paid-in capital               40,829        40,873
  Employee stock ownership plan            (1,239)       (1,359)
  Accumulated earnings/deficit                630        (1,136)
  Accumulated other comprehensive
    income (loss)                          (2,379)       (2,331)

    Total shareholders' equity             37,352        36,047

    TOTAL LIABILITIES AND SHAREHOLDERS'
      EQUITY                             $266,311      $279,608
                                         ========      ========

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



                           PSB BANCORP, INC
                    CONSOLIDATED STATEMENT OF INCOME
                 (In thousands, except per share data)
<TABLE>
<CAPTION>
                                   Three months ended    Three months ended
                                    September 30,2000     September 30, 1999
                                        (unaudited)           (unaudited)
<S>                                <C>                   <C>
INTEREST INCOME
  Loans, including fees                    $3,878              $3,421
  Investment securities                     1,183               1,207
  Deposits with banks                          65                 138

    Total interest income                   5,126               4,766

INTEREST EXPENSE
  Interest on deposits                      1,937               2,120
  Interest on borrowings                      765                 185
  Interest - other                              0                   0
    Total interest expense                  2,702               2,305

      Net interest income                   2,424               2,461

PROVISION FOR LOAN LOSSES                       0                   0

  Net interest income after provision
    for loan losses                         2,424               2,461

NON-INTEREST INCOME                           144                 302

NON-INTEREST EXPENSE
  Salaries and employee benefits            1,063                 893
  Occupancy and equipment                     303                 323
  Other operating                             677                 652

    Total non-interest expense              2,043               1,868

Loss on investment in Iron Bridge              23                   0

    Income before income taxes                502                 895

INCOME TAXES                                  175                 104

NET INCOME FOR PERIOD                      $  327              $  791
                                           ======              ======

  Net income per common share
    Basic                                  $  .08              $  .17
    Diluted                                   .07                 .14
</TABLE>

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



                            PSB BANCORP, INC
                   CONSOLIDATED STATEMENT OF INCOME
                  (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                  Nine months ended
                                       September 30, 2000   September 30, 1999
                                          (unaudited)          (unaudited)
<S>                                    <C>                  <C>
INTEREST INCOME
  Loans, including fees                     $12,019             $ 9,551
  Investment securities                       3,672               2,919
  Deposits with banks                           108                 798

    Total interest income                    15,799              13,268

INTEREST EXPENSE
  Interest on deposits                        5,859               6,236
  Interest on borrowings                      1,917                 301
  Interest - other                                0                   0
    Total interest expense                    7,776               6,537

      Net interest income                     8,023               6,731

PROVISION FOR LOAN LOSSES                       100                   0

  Net interest income after provision
    for loan losses                           7,923               6,731

NON-INTEREST INCOME                             468                 866

NON-INTEREST EXPENSE
  Salaries and employee benefits              3,218               2,611
  Occupancy and equipment                       867                 936
  Other operating                             1,961               1,912

    Total non-interest expense                6,046               5,459

Loss on Investment in Iron Bridge                87                   0

    Income before income taxes                2,258               2,138

INCOME TAXES                                    650                 221

NET INCOME FOR PERIOD                        $1,608             $ 1,917
                                             ======             =======

Net income per common share
  Basic                                      $  .37             $   .42
  Diluted                                       .33                 .33
</TABLE>
The accompanying notes are an integral part of these financial
statements.



                   PSB BANCORP, INC. AND SUBSIDIARY
             CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                          (IN THOUSANDS)

                          Nine Months Ended    Three Months Ended
                            September 30,          September 30,
                            2000        1999     2000      1999
                              (unaudited)           (unaudited)

Net Income for Period    $ 1,608     $ 1,917   $ 327     $ 791

Other comprehensive
  income, net of tax:

Change in accumulated
  Other comprehensive
  income (loss)              (48)    ( 1,754)   (266)     (504)

Total comprehensive
  income                 $  1560      $  163   $  61     $ 287



                                            PSB BANCORP, INC.
                                  CONSOLIDATED STATEMENT OF CASH FLOWS
                                             (IN THOUSANDS)
                            Increase (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>

                                                                       Nine Months Ended
                                                                          September 30,
                                                                     2000            1999
                                                                           (Unaudited)
<S>                                                                 <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                                         $1,608          $1,917
  Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
      Amortization of premium/discount on mortgage-backed
        Securities                                                       52              38
      Depreciation and amortization                                     149             247
      Write-down and expenses of real estate owned                      153             358
      Gain (loss) on sale of real estate owned                            0               0
      Gain (loss) on sale of loans                                      119            (391)
      Provision for losses on loans                                     100               0
      Loan loss recovery                                                 18               0
      Increase in deferred taxes                                       (359)         (1,835)
      Compensation expense-Employee Stock Ownership Plan                120             105
      Decrease in allowance to reduce investments to market            (332)              0
      Change in assets and liabilities:
        Decrease (increase) in loans held for sale                      294          (1,094)
        (Increase) in accrued interest receivable                      (105)           (304)
        (Increase) in prepaid expenses and other assets                (226)         (1,077)
        Decrease in prepaid corporate taxes                              11              67
        Increase in corporate taxes payable                             650              28
        Increase (decrease) in accrued interest payable                 131             (91)
        Increase in accrued expenses & other liabilities                736             438

      Total Adjustments                                               1,511          (3,511)

      Net cash provided (used) by operating activities                3,119          (1,594)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of mortgage-backed securities, available for sale              0         (28,905)
  Purchase of investment securities, available-for-sale                (413)         (6,597)
  Maturities of investment securities, available-for-sale                 0           1,000
  Mortgage-backed security maturities and principal repayments        3,949           2,515
  Acquisition costs of and proceeds from the sale of Federal
    Home Loan Bank stock                                               (550)            249
  Proceeds from sale of real estate owned net of improvements           352             582
  Property acquired through loan foreclosure action                    (626)             (6)
  Capital expenditures                                                 (275)           (153)
  Decrease (increase) in total loans receivable, net                  6,849         (42,722)

    Net cash provided (used) by investing activities                  9,286         (74,037)

CASH FLOWS FROM FINANCING ACTIVITIES:
  (Decrease Increase in deposits, net                               (17,526)         12,166
  Decrease in employee stock ownership plan                               0            (234)
  Change in advances for borrowers' taxes and insurance                (293)           (320)
  Proceeds from borrowed funds                                        4,000          10,000
  Purchase of treasury stock                                           (489)              0
  Change in securities purchased under agreements to resell          (2,300)         13,530

    Net cash provided (used) by financing activities                (16,608)         35,142

NET DECREASE IN CASH AND CASH EQUIVALENTS                            (4,203)        (40,489)

  Cash and Cash equivalents, beginning of period                     17,275          47,526

CASH AND CASH EQUIVALENTS, END OF PERIOD                             13,072           7,037
                                                                     ======         =======

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

  Cash paid during the period for:

    Interest on deposits and borrowings                              $7,776          $6,537
                                                                     ======          ======

    Income taxes                                                     $  650          $  221
                                                                     ======          ======

    Non-cash Activities                                              S  626          $    0
</TABLE>



                          PSB BANCORP, INC.
                      NOTE TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 2000
                              (UNAUDITED)

1.  Basis of Presentation

     The consolidated financial statements include the accounts
of PSB Bancorp, Inc. ("PSB") and its wholly-owned subsidiary,
First Penn Bank.  Significant inter-company accounts and
transactions have been eliminated.  The information contained in
this interim report is unaudited and subject to year-end
adjustment and audit.  However, in the opinion of management, the
information reflects all adjustments necessary to present fairly
the financial condition and results of operations for the periods
presented.  All such adjustments were of a normal recurring
nature.  Operating results for the nine months ended
September 30, 2000 are not necessarily indicative of the results
that may be expected for the full fiscal year. For further
information, refer to the financial statements and footnotes
thereto included in the Company's Annual Report on form 10K for
the year ended December 31, 1999.

2.  Mergers

     On October 12, 1999, the Company completed its acquisition
of First Bank of Philadelphia ("First Bank").  In connection with
the acquisition, each outstanding share of First Bank was
exchanged for .857 shares of PSB common stock.  In addition,
options to acquire 1,612,500 shares of First Bank have been
converted into options to acquire 1,381,912 shares of the
Company's common stock.

     As part of the transaction, PSB merged Pennsylvania Savings
Bank, which held a state savings bank charter, with and into
First Bank, which held a state commercial bank charter. The
resulting operating subsidiary operates under the name of First
Penn Bank (the "Bank") and holds a commercial bank charter. This
provides the Bank with greater lending flexibility, particularly
with respect to commercial loans. The Bank operates seven
branches including two in Center City Philadelphia, and one in
Montgomery County, Pennsylvania.

     The transaction was accounted for as a pooling of interests
for financial reporting purposes, and as a tax-free
reorganization for tax purposes.

     On November 2, 2000 PSB Bancorp, Inc. and Jade Financial
Corp announced the execution of a definitive Agreement & Plan of
Merger pursuant to which PSB will acquire Jade Financial Corp.
and its wholly-owned subsidiary, IGA Federal Savings Bank in a
cash transaction valued at approximately $24.1 million. Pursuant
to the agreement, PSB will purchase all of the outstanding shares
of Jade Financial Corp. that PSB does not already own or that are
not owned by the JADE Employee Stock Ownership Plan ("ESOP")for
$13.55 per share in cash.  The Jade ESOP may receive cash, PSB
stock or a combination of both. PSB will purchase its own shares
in open market and privately-negotiated transactions in order to
provide shares for exchange with the ESOP.

     In connection with the transaction, Jade's wholly-owned
subsidiary IGA Federal Savings Bank will merge with and into
PSB's wholly-owned subsidiary, First Penn Bank with the
commercial bank charter of First Penn Bank surviving the merger.

3.  Stock Buyback Program

     Consistent with the commitment to enhance shareholder value,
the Board of Directors of PSB Bancorp, Inc approved a stock
buyback program on March 16, 2000, under which PSB may acquire a
maximum of 5.0%, or 218,532 shares, of its common stock in open
market and privately negotiated transactions. To date 87,500 of
authorized shares have been repurchased and retired by PSB.

4.  Business Strategy

     The Bank's strategy is to maximize profitability by
providing quality deposit and loan products in an efficient
manner as a well-capitalized and independent financial
institution.  Generally, the Bank seeks to implement this
strategy by emphasizing retail deposits as its primary source of
funds and by maintaining a substantial part of its assets in
locally-originated residential first mortgage, commercial real
estate loans, commercial business loans, construction loans and
student loans, mortgage-backed securities and other liquid
investment securities.  The Bank's business strategy incorporates
the following elements: (1) increasing assets by expanding its
retail branch network to include other contiguous segments of the
metropolitan Philadelphia market, (2) expanding its lending
operations throughout the metropolitan Philadelphia area and the
adjacent counties of Pennsylvania, New Jersey and Delaware, and
(3) increasing net interest income and reducing interest rate
risk by emphasizing the origination of commercial real estate,
construction, commercial business and student loans which
generally bear higher interest rates and have shorter terms than
residential mortgage loans.
5.  Investment Valuation

     PSB, together with three other financial institutions
participated in the initial capitalization of BankZip.com, an
internet banking company. The total capitalization of BankZip was
$13.9 million and PSB contributed $2.5 million in the form of a
convertible note. On September 15, 2000, an involuntary
bankruptcy petition was filed against ZipFinancial.Com, Inc. by
one of its vendors, the petition was subsequently dismissed on
October 23, 2000.  On November 2, 2000, BankZip completed
$410,000 in additional financing and is seeking additional
financing of $1.5 to $2.0 million.  The company has entered into
a term sheet with a strategic investor to provide a $1.0 million
line of credit.  The ability to draw on the line of credit will
be dependent on sales.  The continued viability of the company is
dependent on its ability to raise additional capital.  No
assurances can be given that the company will be able to raise
additional capital. To reflect the uncertainty surrounding this
investment, as of September 30, 2000, PSB has established an
equity account valuation reserve pursuant to SFAS 115 of 50% or
$1.25 million while BankZip seeks additional financing.

6.  Earnings Per Share

     Basic earnings per share ("EPS") is computed based on the
weighted average number of shares of common stock outstanding
during the periods presented.  Stock options are considered
common stock equivalents and are included in the computation of
dilutive EPS using the treasury stock method, unless
anti-dilutive.



     The following table reconciles the numerators and
denominators of the basic and diluted EPS computations for the
Bank's net income for the three and nine months ended
September 30, 2000:

Three Months Ended       Income        Shares         Per-Share
September 30, 2000     (Numerator)   (Denominator)      Amount

Basic EPS:
Income available to
  common shareholders    $327,000      4,455,007
Uncommitted Shares                      (138,241)
                                       4,316,766         $.08
                                                         ====

Effect of Dilutive
  Securities:
Options                                   391,728

Diluted EPS:
Income available to
  common shareholders    $327,000       4,708,494        $.07
                                                         ====

Nine Months Ended        Income        Shares         Per-Share
September 30, 2000     (Numerator)   (Denominator)      Amount

Basic EPS:
Income available to
  common shareholders    $1,608,000     4,455,007
Uncommitted Shares                       (138,241)
                                        4,316,766         $.37
                                                          ====

Effect of Dilutive
  Securities:
Options                                   487,705

Diluted EPS:
Income available to
  common shareholders    $1,608,000     4,804,471         $.33
                                                          ====



     The following table reconciles the numerators and
denominators of the basic and diluted EPS computations for the
Bank's net income for the three and nine months ended
September 30, 1999:

Three Months Ended       Income        Shares         Per-Share
September 30, 1999     (Numerator)   (Denominator)      Amount

Basic EPS:
Income available to
  common shareholders    $791,000      4,538,222
Uncommitted Shares                      (156,078)
                                       4,382,144         $.18
                                                         ====

Effect of Dilutive
  Securities:
Options                                   630,482

Diluted EPS:
Income available to
  common shareholders    $791,000       5,012,626        $.16
                                                         ====

Nine Months Ended        Income        Shares         Per-Share
September 30, 1999     (Numerator)   (Denominator)      Amount

Basic EPS:
Income available to
  common shareholders    $1,917,000     4,538,222
Uncommitted Shares                       (156,078)
                                        4,382,144         $.44
                                                          ====

Effect of Dilutive
  Securities:
Options                                   612,061

Diluted EPS:
Income available to
  common shareholders    $1,917,000     4,994,205         $.39
                                                          ====



Item 2  MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL
        CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

General

     The Bank's results of operations depend primarily on its net
interest income, which is the difference between interest income
on interest-earning assets, and interest expense on its interest-
bearing liabilities.  Its interest-earning assets consist
primarily of loans receivable and investment securities, while
its interest-bearing liabilities consist primarily of deposits
and borrowings.  The Bank's net income is also affected by its
provision for loan losses and its level of non-interest income as
well as its non-interest expense, such as salary and employee
benefits, occupancy costs and charges relating to non-performing
and other classified assets.

Net Income

     The Bank's net income totaled $327,000 and $791,000 for the
three months ended September 30, 2000 and 1999, respectively. The
Bank's net income totaled $1.6 million and $1.9 million for the
nine months ended September 30, 2000 and 1999, respectively. The
decrease was due largely to the increase in interest on
borrowings and income taxes. The Company's earnings per share for
the three months ended September 30, 2000 was $0.08 basic and
$.0.07 diluted respectively, and $0.37 basic and $0.33 diluted
per share for the nine months ended September 30, 2000,
respectively, compared to $0.17 basic and $0.14 diluted for the
three months ended September 30, 1999 and $0.42 basic and $0.33
diluted for the nine months ended September 30, 1999.

Net Interest Income and Average Balances

     Net interest income is a key component of the Bank's
profitability structure and is managed in coordination with the
Bank's interest rate sensitivity position.  Net interest income
for the third quarter of 2000 was $2.4 million, or 1.5% greater
than the third quarter of 1999, and was $8.0 million, or 19.2%
greater for the nine months ended 2000 as compared to the same
period in 1999. The increase generally reflected management's
strategy of pursuing diversification of the Bank's loan
composition while maintaining adequate margins over minimum
required capital levels.  The increase also reflects an improving
yield on the Bank's loan portfolio and an increase in mortgage-
backed and investment securities.

     The Bank's net interest margin (net interest income divided
by total average interest-earning assets) for the three and nine
months ended September 30, 2000 was 4.02% and 4.29%,
respectively. These margins compare to net interest margin for
the three and nine months ended September 30, 1999 of 4.06% and
4.08%, respectively. The Bank's net interest spread (the
difference between the yield on interest-earning assets and the
rates paid on interest-bearing liabilities) for the three and
nine months ended September 30, 2000 was 3.27% and 3.38%,
respectively. These spreads compare to net interest spread for
the three and nine months ended September 30, 1999 of 3.07% and
3.35%, respectively.



Average Balance Sheets and Rate/Yield Analysis

     Net interest income is effected by changes in both average
interest rates and average volumes of interest-earning assets and
interest-bearing liabilities.  The following tables present the
average daily balances of assets, liabilities and shareholders'
equity and the respective interest earned or paid on interest-
earning assets and interest-bearing liabilities, as well as
average rates for the period indicated (in thousands):

<TABLE>
<CAPTION>

                                                             Three Months Ended September 30,
                                                        2000                               1999
                                            Average   Interest/   Yield/      Average   Interest/   Yield/
                                            Balance   Expense      Rate       Balance    Expense    Rate
<S>                                        <C>        <C>         <C>        <C>        <C>         <C>
ASSETS
Interest-earning assets:
  Interest-earning deposits                 $   4,005   $    65    6.49%      $  10,311   $  138     5.35%
  Investment securities                        31,905       440    5.52%         29,231      389     5.32%
  Mortgage-backed securities                   44,183       743    6.73%         47,692      818     6.86%
  Net loans                                   161,331     3,878    9.62%        155,256    3,421     8.81%
    Total interest-earning assets             241,424   $ 5,126    8.49%        242,490   $4,766     7.86%
Noninterest-earning assets                     18,473                            11,879
  Total assets                              $ 259,897                          $254,369
                                            =========                          ========

LIABILITIES
Interest-bearing liabilities:
  Now checking accounts                     $  14,108   $   108    3.06%       $ 13,762   $   98     2.85%
  Money market accounts                        10,410        98    3.77%         17,593      163     3.71%
  Savings deposits                             28,994       212    2.92%         33,797      245     2.90%
  Certificates                                107,100     1,519    5.67%        113,985    1,614     5.66%
    Total deposits                            160,612     1,937    4.82%        179,137    2,120     4.73%
  Borrowed money                               46,259       765    6.61%         13,208      185     5.60%
    Total interest-bearing liabilities        206,871     2,702    5.22%        192,345    2,305     4.79%
Non-interest-bearing liabilities               15,280                            25,857
  Total liabilities                           222,151                           218,202
Retained earnings or shareholders'
  equity                                       37,746                            36,167
    Total liabilities and retained
      earnings or shareholders' equity       $259,897                          $254,369
                                              =======                           =======
Net interest income                                      $2,424                            $2,461
                                                          =====                             =====
Interest rate spread                                               3.27%                             3.07%
Net yield on interest-earning assets                               4.02%                             4.06%
Ratio of interest-earning assets to
  interest-bearing liabilities                                     1.24x                             1.26x
</TABLE>



<TABLE>
<CAPTION>

                                                             Nine Months Ended September 30,
                                                        2000                               1999
                                            Average   Interest/   Yield/      Average   Interest/   Yield/
                                            Balance   Expense      Rate       Balance    Expense    Rate
<S>                                        <C>        <C>         <C>        <C>        <C>         <C>
ASSETS
Interest-earning assets:
  Interest-earning deposits                 $   2,275   $   108    6.33%      $  19,650  $   798     5.41%
  Investment securities                        31,440     1,429    6.06%         24,556    1,061     5.76%
  Mortgage-backed securities                   45,292     2,243    6.60%         42,264    1,858     5.86%
  Net loans                                   170,448    12,019    9.40%        133,416    9,551     9.55%
    Total interest-earning assets             249,455   $15,799    8.44%        219,886  $13,268     8.05%
Noninterest-earning assets                     15,926                            27,286
  Total assets                              $ 265,381                          $247,172
                                            =========                          ========

LIABILITIES
Interest-bearing liabilities:
  Now checking accounts                     $  12,911   $   258    2.66%       $ 11,581   $  232     2.67%
  Money market accounts                        11,928       328    3.67%         15,297      417     3.63%
  Savings deposits                             29,267       632    2.88%         30,563      665     2.90%
  Certificates                                110,534     4,641    5.60%        120,973    4,922     5.42%
    Total deposits                            164,640     5,859    4.74%        178,414    6,236     4.66%
  Borrowed money                               40,087     1,917    6.38%          7,046      301     5.70%
    Total interest-bearing liabilities        192,807     7,776    5.06%        185,460    6,537     4.70%
Non-interest-bearing liabilities               25,579                            25,470
  Total liabilities                           228,306                           210,930
Retained earnings or shareholders'
  equity                                       37,075                            36,242
    Total liabilities and retained
      earnings or shareholders' equity       $265,381                          $247,172
                                              =======                           =======
Net interest income                                      $8,023                            $6,731
                                                          =====                             =====
Interest rate spread                                               3.38%                             3.35%
Net yield on interest-earning assets                               4.29%                             4.08%
Ratio of interest-earning assets to
  interest-bearing liabilities                                     1.29x                             1.19x
</TABLE>



Provision for Loan Losses

     The provision for loan losses represents the charge against
earnings that is required to fund the allowance for loan losses.
The Bank determines the level of the allowance for loan losses
through a regular review of the loan portfolio.  The adequacy of
the loan loss allowance is reviewed monthly by the Board of
Directors.  See "Asset Quality - Allowance for Loan Losses." The
Bank provided a loan loss allowance of $100,000 and a recovery of
$18,000 for the nine months ended September 30, 2000, no
additional provision was provided for the three months ended
September 30, 2000,. Additionally, the Bank did not have any
charge-offs against the allowance for loan losses during such
period. During the nine month and three month periods ended
September 30, 1999, the Bank did not provide a loan loss
allowance and had no recovery or charge-offs against the
allowance for loan losses.

Non-interest Income

     Non-interest income consists of gain on sale of loans,
service charges, rental income and other income.  For the three
months ended September 30, 2000, non-interest income decreased by
$158,000 to $144,000 or 52.3% from $302,000 for the same period
in 1999. Non-interest income decreased by $398,000, or 45.9% for
the same period in 1999.  The principal reasons for the decrease
in non-interest income was a $272,000 decrease in gain on sale of
loans to $119,000 in 2000 from $391,000 in 1999, due to a
decrease in number of loans sold by Transnational Mortgage Corp.
in 2000. For the nine months ended September 30, 2000,  increases
in loan fees, service charges and rental income were offset by
decreases in the gain on sale of loans and other income resulting
largely from the decrease in Transnational's business.

Non-interest Expense

     Non-interest expense principally consists of employees'
compensation and benefits, deposit insurance premiums and
premises and occupancy costs and other operating expenses.  For
the three months ended September 30, 2000, total non-interest
expense increased $175,000 or 9.4% to $2,043,000, compared to
$1,868,000 for the same period in 1999. Total non-interest
expense increased by $587,000, or 10.8%, to $6,046,000 for the
nine months ended September 30, 2000, from $5,459,000 for the
nine months ended September 30, 1999 The principal reasons for
the increase was an increase in compensation and employee
benefits due to normal salary increases and accrual of bonuses.
Non-interest expense also has increased  due to costs associated
with the Bank's expansion strategy, including the merger of
Pennsylvania Savings Bank and First Bank of Philadelphia.

Loss on Investment

     PSB accounts for it's ownership interest in Iron Bridge
Holdings, Inc. using the equity method (see Financial Condition
for description of equity method).  PSB's ownership interest in
Iron Bridge Holdings, Inc. reflected a $23,000 and $87,000 loss
for the three and nine months ended September 30, 2000.

Provision for Income Taxes

     Income tax provisions for the nine  months ended
September 30, 2000 and 1999 of $650,000 and $221,000,
respectively, generally reflect the Bank's pre-tax income in
accordance with the principles of SFAS No. 109, "Accounting for
Income Taxes."

Liquidity and Interest Rate Sensitivity

     The maintenance of adequate liquidity and the mitigating of
interest rate risk is integral to the management of the Bank's
balance sheet. Liquidity represents the ability to meet potential
cash outflows resulting from deposit customers who need to
withdraw funds or borrowers who need credit.  Interest rate
sensitivity focuses on the impact of fluctuating interest rates
and the re-pricing characteristics of rate sensitive assets and
liabilities on net interest income.

     The Bank's asset/liability management committee monitors the
level of short-term assets and liabilities to maintain an
appropriate balance between liquidity, risk and return.
Liquidity is derived from various sources which includes
increases in core deposits, sales of certificates of deposits,
the amortization and prepayment of loans and mortgage-backed
securities, maturities of investment securities and other short-
term investments. The liquidity position of the Bank is also
strengthened by a $50 million credit facility with the Federal
Home Loan Bank (FHLB).  Advances are secured by all FHLB stock
and qualifying mortgage loans.  The Bank was in a borrowing
position as of September 30, 2000.

     Maximizing cash flow over time is crucial to the maintenance
of adequate liquidity.  The Bank's total cash flow is a product
of its operating activities, investing activities and financing
activities.  During the nine months ended September 30, 2000, net
cash provided by operating activities was $3.1 million, compared
to net cash used by operating activities of $1.6 million for the
same period of 1999.  During the nine months ended September 30,
2000, net cash provided by investing activities was $9.3 million,
compared to net cash used by investing activities of $74.0
million for the same period of 1999.  Financing activities used
net cash of $16.6 million during the nine months ended
September 30, 2000, compared to $35.1 million in net cash
provided in financing activities for the same period of 1999.
The net result of these items was a $4.2 million decrease in cash
and cash equivalents for the nine months ended September 30,
2000, compared to a $40.5 million decrease in cash and cash
equivalents for the same period of 1999.

     Interest rate sensitivity is closely related to liquidity
because each is directly affected by the maturity of assets and
liabilities.  Rate sensitivity also deals with exposure to
fluctuations in interest rates and its effect on net interest
income.  The primary function of the Bank's interest rate
sensitivity management is to reduce exposure to interest rate
risk through an appropriate balance between interest-earning
assets and interest-bearing liabilities.  The goal is to minimize
fluctuations in the net interest margin of the Bank due to
general changes in interest rates.

     The blending of fixed and floating rate loans and
investments to match the re-pricing and maturity characteristics
of the various funding sources is a continuous process in an
attempt to minimize any fluctuations in net interest income.  The
composition of the balance sheet is designed to minimize any
significant fluctuation in net interest income and to maximize
liquidity.  Management believes that the accessibility to FHLB
borrowings will provide the flexibility to assist in keeping
fluctuations in net interest income under control and to maintain
an adequate liquidity position.

     In light of these requirements, and regulatory mandates, the
Bank will utilize a co-sourced ALM simulation model and adopt
rate shock scenario tests of net interest income (NII), net
income (NI), and economic value of equity (EVE) related
performance as its primary IRR assessment methodology. The rate
shock IRR test is consistent with good industry practices with
respect to IRR assessment, and its outputs are comparatively
straightforward to interpret. NII/NI and EVE IRR are assessed to
measure potential risk in all time domains in the balance sheet
(NII/NI measures mainly short term IRR while EVE measures longer
range IRR).

     EVE IRR assessment is conducted by calculating base case
(current rates remain constant) financial performance and
comparing this benchmark value to values calculated under
alternate +/-100 bp, +/-200 bp, and +/-300 bp rate shock
scenarios (instantaneous parallel and lasting shifts of the yield
curve).  Regulatory focus with respect to EVE is normally on the
+/-200 bp rate shock scenarios; the +/-300 bp scenarios are
produced for advanced diagnostic purposes. As of September 30,
2000 the Bank's EVE performance is slightly asset sensitive in
the near term. EVE decreases in the +200 bp regulatory rate
scenario by 17.42% and increases by 11.65% in the comparable -200
bp rate scenario.

     Normal regulatory focus for NII (and NI) is on exposures in
the +/-200 bp rising and declining rate scenario. As of September
30, 2000, the Bank's NII performance is slightly liability
sensitive in the near term. NII decreases in the rising rate
scenario by -1.37% and increases by 0.31% in the declining rate
scenario.



Capital Adequacy

     The Bank is required to maintain minimum ratios of Tier I
and total capital to total "risk weighted" assets and a minimum
Tier I leverage ratio, as defined by the banking regulators. The
Bank's liquidity is quantified through the use of a standard
liquidity ratio of liquid assets (cash and cash equivalents,
investment securities available-for-sale, mortgage-backed
securities available-for-sale and Federal Home Loan Bank stock)
to short-term borrowings plus deposits. At September 30, 2000,
the Bank was required to have a minimum Tier I and total capital
ratios of 4.0% and 8.0%, respectively, and a minimum Tier I
leverage ratio of 4.0%. The Bank's actual Tier I and total
capital ratios at September 30, 2000, were 20.5% and 21.3%,
respectively, and the Bank's Tier I leverage ratio was 12.9%.
These ratios exceed the requirements for classification as a
"well capitalized" institution, the industry's highest capital
category.

     On September 30, 2000, the Bank was in compliance with
regulatory capital requirements as follows:

<TABLE>
<CAPTION>
                                             September 30, 2000
                                                 Minimum             Well
                                                 Capital            Capital
                                  Actual         Requirements     Requirements
                                 Amount  Ratio   Amount  Ratio   Amount  Ratio
<S>                              <C>     <C>     <C>     <C>     <C>    <C>
Tier I capital to risk
  weighted assets                33,093   20.50%   6,457  4.00%   9,685  6.00%
Total capital to risk
  weighted assets                34,442   21.33%  12,913  8.00%  16,141 10.00%
Leverage to average assets       33,093   12.86%  10,287  4.00%  12,859  5.00%

<CAPTION>
                                               December 31, 1999
                                                 Minimum             Well
                                                 Capital            Capital
                                  Actual         Requirements     Requirements
                                 Amount  Ratio   Amount  Ratio   Amount  Ratio
<S>                              <C>     <C>     <C>     <C>     <C>    <C>
Tier I capital to risk
  weighted assets                31,348   17.90%   7,006  4.00%  10,510  6.00%
Total capital to risk
  weighted assets                32,579   18.60%  14,013  8.00%  17,516 10.00%
Leverage to average assets       31,348   11.48%  10,927  4.00%  13,659  5.00%
</TABLE>


FINANCIAL CONDITION

General

     The Bank's total assets decreased $13.3 million or 4.8% from
$279.6 million at December 31, 1999 to $266.3 million at
September 30, 2000. The decrease in assets was primarily the
result of a decrease in net loans, loans held for sale and
investments.

     Total loans decreased to $170.6 million at September 30,
2000, from $177.6 million at December 31, 1999.  The decrease of
$7.0 million, or 4.1%, was the result of payoffs of the Bank's
student loan program. This program was an existing program of
First Bank of Philadelphia and now appears in the Company's
consolidated results because of the merger. These loans are
funded to students at qualifying schools and are subsequently
contractually sold at par within 45 to 60 days of origination to
an investor. A decrease in construction, commercial and non-
residential loans were also contributing factors. Increased loan
origination of other loan products such as commercial real
estate, SBA loans and consumer loans as well as modest growth in
residential mortgage loans were also a factor as illustrated by
the following loan composition table:

<TABLE>
<CAPTION>

                                  At September 30,   At December 31,
                                        2000               1999
                                   (In Thousands)     (In Thousands)
                                 Amount    Percent   Amount    Percent   Variance  % Change
<S>                              <C>       <C>       <C>       <C>       <C>       <C>
Real Estate Loans:
1
  One-to-four family(1)         $ 64,619    37.88%   $ 63,937    35.99%   $   682     1.07%
  Construction loans              21,304    12.49%     23,528    13.25%    (2,224)   -9.45%
  Five or more family
    Residence                      2,237     1.31%      2,712     1.53%      (475)  -17.51%
  Nonresidential                  25,212    14.78%     27,117    15.27%    (1,905)   -7.03%

Commercial loans                   9,376     5.50%     10,682     6.01%    (1,306)  -12.23%
SBA loans                          8,003     4.69%      6,682     3.76%     1,321    19.77%
Student loans held for
  sale                            37,139    21.77%     40,509    22.80%    (3,370)   -8.32%
Consumer loans                     2,715     1.59%      2,468     1.39%       247    10.01%
  Total loans                   $170,605   100.00%   $177,635   100.00%   $(7,030)   -3.96%
                                ========   ======    ========   ======    =======    =====

Less:
  Unearned fees and
    discounts                   $    509             $    389
  Undisbursed loan proceeds           -                     7
  Allowance for loan losses        1,349                1,231
  Net Loans                     $168,747             $176,008
                                ========             ========
</TABLE>

(1) Includes loans held for sale



     Total investment securities (including mortgage-backed
securities and excluding BankZip and other investments) decreased
$1.9 million, or 2.6%, to $71.7 million at September 30, 2000,
from $73.6 million at December 31, 1999.

     On January 29, 1999, PSB purchased 1,600,000 shares of
Series A Convertible Preferred Stock, $.01 par value per share,
of Iron Bridge Holdings, Inc. ("Iron Bridge").  PSB purchased the
shares for a total cost of $1.25 million. On February 25, 2000,
PSB purchased 347,750 shares of Series A Convertible Preferred
Stock, $.01 par value per share of Iron Bridge for a total cost
of $500,000. PSB owns 100% of Iron Bridge's Series A Convertible
Preferred Stock. Iron Bridge is the holding company for McGuire
Performance Solutions, Inc., a nationally recognized firm
delivering cost-effective solutions for high performance total
balance sheet management to banks, thrifts, credit unions and
other financial institutions.  PSB accounts for it's ownership
interest in Iron Bridge using the equity method which initially
records an investment in stock at cost, and adjusts the carrying
amount of the investment to recognize the investor's share of the
earnings or losses of the investee after the date of acquisition.
As of September 30, 2000, PSB had an ownership interest of 49% of
Iron Bridge and adjusted it's investment to recognize an $87,000
loss.

     On November 16, 1999, PSB purchased a convertible debenture
in the amount of $2.5 million with an initial rate of 5.45% from
ZipFinancial.Com.Inc (d/b/a Bankzip.com). BankZip aggregates and
provides Internet-based services to community financial
institutions.  This menu of Internet services has two dimensions-
an external consumer dimension and an internal bank operations
dimension.  From a consumer banking perspective, the aggregated
services, such as online applications, instant online loan
decisions, full call center support and marketing support, enable
community financial institutions to provide a complete online
banking solution for existing customers and attract new
customers.  BankZip's menu of Internet services also allows
community financial institutions to convert back-office processes
to a more cost-effective online environment.  By converting back-
office processes to an online environment, financial institutions
can convert fixed expense to variable expense.  As a result,
financial institutions realize significant cost savings and
efficiencies while simultaneously enhancing their ability to
deliver products and services to online and offline customers.

     On September 15, 2000, an involuntary bankruptcy petition
was filed against ZipFinancial.Com, Inc. by one of its vendors,
the petition was subsequently dismissed on October 23, 2000.  On
November 2, 2000, BankZip completed $410,000 in additional
financing and is seeking additional financing of $1.5 to $2.0
million.  The company has entered into a term sheet with a
strategic investor to provide a $1.0 million line of credit.  The
ability to draw on the line of credit will be dependent on sales.
The continued viability of the company is dependent on its
ability to raise additional capital.  No assurances can be given
that the company will be able to raise additional capital. To
reflect the uncertainty surrounding this investment, as of
September 30, 2000, PSB has established an equity account
valuation reserve pursuant to SFAS 115 of 50% or $1.25 million
while BankZip seeks additional financing.

     Cash and cash equivalents, including interest-bearing
deposits with banks, decreased $4.2 million or 24.3% to $13.1
million at September 30, 2000, from $17.3 million at December 31,
1999. This decrease was the result of the redemption of
certificate of deposits and disbursements of loan proceeds.

     Total liabilities decreased from $243.6 million at
December 31, 1999 to $229.0 million at September 30, 2000.  This
$14.6 million, or 6.0% decrease, was primarily due to a $17.8
million decrease in total deposits due to a run off of
certificate of deposits, and a decrease in securities purchased
under agreements to resale. Due to rising interest rates and the
competitive market, the Bank has reduced it's primary source of
funds (deposits), and utilized borrowed funds which yield a lower
interest rate.



Asset Quality

Delinquent Loans

     When a borrower fails to make a required payment on a loan,
the Bank attempts to cure the deficiency by contacting the
borrower and seeking payment.  Contacts are generally made on the
15th day after a payment is due.  In most cases, deficiencies are
cured promptly.  If a delinquency extends beyond 30 days, the
loan and payment history is carefully reviewed, additional
notices are sent to the borrower and efforts are made to collect
the loan.  While the Bank generally prefers to work with
borrowers to resolve such problems, when the account becomes 90
days delinquent, the Bank does institute foreclosure or other
proceedings, as necessary, to minimize any potential loss.

Non-Performing Assets

     The Bank's level of non-performing assets increased $1.3
million or 41.9%, during the nine months ended September 30,
2000, from $3.1 million at December 31, 1999 to $4.4 million at
September 30, 2000. As a matter of policy, the accrual of loan
interest is discontinued if management believes that, after
considering economic and business conditions and collection
efforts, the borrower's financial condition is such that
collection of interest becomes doubtful.  This is normally done
when a loan reaches 90 days delinquent.  At this time, all
accrued but unpaid interest is reversed.  There are occasional
exceptions if the loans are in the process of collection and the
loan is fully secured.

     The following table sets forth non-performing assets as of
September 30, 2000 and December 31, 1999 (dollars in thousands):

                             At September 30,     At December 31,
                                  2000                 1999

Loans past due 90 days or
  more as to interest or
  principal and accruing
  interest                        $     -            $     180
Nonaccrual loans                     3,194               1,878
Loans restructured to provide
  a reduction or deferral of
  interest or principal                 -                   -
Total nonperforming loans            3,194               2,058
Real estate owned (REO)              1,169               1,047
  Total nonperforming assets      $  4,363           $   3,105
                                  ========           =========

Nonperforming loans to total
  loans                               1.87%               1.16%
Nonperforming assets to
  total assets                        1.63%               1.11%
Allowance for loan losses
  to total loans                      0.79%               0.69%
Allowance for loan losses
  to nonperforming loans             42.24%              59.82%
Allowance for loan losses to
  nonperforming assets               30.92%              39.65%
Net charge-offs as a percentage
  of total loans                         -                   -



Allowance for loan losses

     The provision for loan losses is an amount charged against
earnings to fund the allowance for possible future losses on
existing loans.  In order to determine the amount of the
provision for loan losses, the Bank conducts a monthly review of
the loan portfolio to evaluate overall credit quality.  In
establishing its allowance for loan losses, management considers
the size and risk exposure for each segment of the loan
portfolio, past loss experience, current indicators such as the
present levels and trends of delinquency rates and collateral
values, and the potential losses for future periods.  The
provisions are based on management's review of the economy,
interest rates, general market conditions, and in certain
instances, an estimate of net realizable value (or fair value) of
the collateral, as applicable, considering the current and
anticipated future operating environment.  These estimates are
particularly susceptible to changes that may result in a material
adjustment to the allowance for loan losses.  As adjustments
become identified, they are reported in earnings for the period
in which they become known.  Management believes that it makes an
informed judgment based upon available information.  The adequacy
of the allowance is reviewed monthly by the Board of Directors.

     It is the objective of the Bank's evaluation process to
establish the following components of the allowance for loan
losses:  a specific allocation for certain identified loans, a
general allocation for pools of loans based on risk rating, and
a general allocation for inherent loan portfolio losses.
Management performs current evaluations of its criticized and
classified loan portfolios and assigns specific reserves that
reflects the current risk to the Bank.  As a general rule,
special mention assets will have a minimum reserve of 5%,
substandard assets will have a minimum reserve of 10%, and
doubtful assets will have a minimum reserve of 50%.  A general
reserve allocation is applied for pools of loans based on risk
rating for all loans not specifically reserved for as described
previously.

     Based upon management's analysis, the Bank recorded
provisions for loan losses during the nine month and three month
periods ended September 30, 2000 of $100,000 and $0,
respectively. The Bank recorded no provisions for the nine month
and three month periods September 30, 1999. The Bank recorded no
charge-offs for the nine month and three month periods ended
September 30, 2000 and 1999. The Bank recorded a recovery of
$18,000 and $0 for the nine month and three month periods
September 30, 2000 and 1999.



Part II.  OTHER INFORMATION

Item 2    Legal Proceedings

     None.

Item 3    Changes in Securities

     None.

Item 4    Defaults upon Senior Securities

     None.

Item 5    Submission of Matters to a Vote of Security Holders

    None.

Item 6.   Exhibits and Reports on Form 8-K

     (a)  Exhibits - None

     (b)  Reports on Form 8-K - 	On November 3, 2000, a Form 8-
K was filed by PSB announcing the signing of an Agreement and
Plan of Merger with Jade Financial Corp.



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 dully authorized.


                              PSB BANCORP, INC

                              By:/s/Karen Washington
                                 Karen Washington
                                 (Principal Financial Officer and
                                 Chief Accounting Officer)


November 13, 2000