U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549





FORM 10-QSB

(Mark One)

[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2001

[  ] Transition report under Section 13 or l5(d) of the Exchange Act

For the transition period from  to _____

Commission file number 000-27481

Rome Bancorp, Inc.

(Exact Name of Small Business Issuer as Specified in its Charter)



100 West Dominick Street, Rome, NY 13440-5810

(Address of Principal Executive Offices)

(315) 336-7300

(Issuer

N/A

(Former Name, Former Address and Former Fiscal Year,

if Changed Since Last Report)



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

Yes X  No __

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

Outstanding at

Class	October 31, 2001

Common Stock, par value $.01 			    2,962,045

Transitional Small Business Disclosure Format (check one):	Yes 	No X_





ROME BANCORP, INC.

FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 2001



TABLE OF CONTENTS

|        |                       |                                                     | PAGE
|------- | --------------------- | --------------------------------------------------- | ----
|        |                       |                                                     |     
|PART I  | FINANCIAL INFORMATION | 3                                                  
|        |                       |                                                     |     
|        | ITEM 1.               | FINANCIAL STATEMENTS                                | 3   
|        | ITEM 2.               | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL   |     
|        |                       | CONDITION AND RESULTS OF OPERATIONS                 | 11  
|        |                       |                                                     |     
|PART II | OTHER INFORMATION     | 16                                                 
|        |                       |                                                     |     
|        | ITEM 1.               | LEGAL PROCEEDINGS                                   | 16  
|        | ITEM 2.               | CHANGES IN SECURITIES AND USE OF PROCEEDS           | 16  
|        | ITEM 3.               | DEFAULTS UPON SENIOR SECURITIES                     | 16  
|        | ITEM 4.               | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 17  
|        | ITEM 5.               | OTHER INFORMATION                                   | 17  
|        | ITEM 6.               | EXHIBITS AND REPORTS ON FORM 8-K                    | 17  

| |  | SIGNATURES | 17
| |  | ---------- | --

PART I  FINANCIAL INFORMATION

Item 1.  Financial Statements



ROME BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Balance Sheet

September 30, 2001 and December 31, 2000

(in thousands, except share data)

|                                                             |                                                                    |                                                                      |                                           
|------------------------------------------------------------ | ------------------------------------------------------------------ | -------------------------------------------------------------------- | ------------------------------------------
|                                                             |                                                                    |                                                                      |                                           
|                                                             |                                                                    |                                                                      |                                           
|                                                             |                                                                    |                                                                      |                                           
|Assets                                                       |                                                                    |                                                                      |                                           
|                                                             |                                                                    |                                                                      |                                           
|Cash and due from banks                                      | $               5,200                                              |                                                                      | $              6,600                      
|Federal funds sold and other short-term investments          | 9,828                                                              |                                                                      | 14,200                                    
|                                                             | Total cash and cash equivalents                                    | 15,028                                                               |                                           
|Securities available for sale, at fair value                 | 53,007                                                             |                                                                      | 47,403                                    
|Securities held to maturity (fair value of $1,808 and $1,854 |                                                                    |                                                                      |                                           
|                                                             | at September 30, 2001 and December 31, 2000, respectively)         | 1,710                                                                |                                           
|Loans                                                        |                                                                    |                                                                      | 171,177                                   
|                                                             | Less: Allowance for loan loss                                      | 1,440                                                                |                                           
|                                                             |                                                                    | Net loans                                                            | 169,737                                   
|Premises and equipment, net                                  | 3,229                                                              |                                                                      | 3,389                                     
|Accrued interest receivable                                  | 1,661                                                              |                                                                      | 1,678                                     
|Other assets                                                 | 3,625                                                              |                                                                      | 3,922                                     
|                                                             |                                                                    | Total assets                                                         | 247,997                                   
|                                                             |                                                                    |                                                                      |                                           
|Liabilities & Shareholders'Equity                            |                                                                    |                                                                      |                                           
|                                                             |                                                                    |                                                                      |                                           
|Liabilities                                                  |                                                                    |                                                                      |                                           
|                                                             | Deposits:                                                          |                                                                      |                                           
|                                                             |                                                                    | Non-interest bearing                                                 | 25,493                                    
|                                                             |                                                                    | Savings                                                              | 80,680                                    
|                                                             |                                                                    | Money market                                                         | 6,608                                     
|                                                             |                                                                    | Time                                                                 | 74,403                                    
|                                                             |                                                                    | Other interest bearing                                               | 2,637                                     
|                                                             |                                                                    |                                                                      | Total deposits                            
|                                                             | Borrowings                                                         | 17,941                                                               |                                           
|                                                             | Other liabilities                                                  | 4,028                                                                |                                           
|                                                             |                                                                    |                                                                      | Total liabilities                         
|                                                             |                                                                    |                                                                      |                                           
|Shareholders' equity                                         |                                                                    |                                                                      |                                           
|                                                             | Common Stock, $.01 par value; authorized: 5,000,000 shares;        |                                                                      |                                           
|                                                             |                                                                    | issued: 3,400,776 shares; outstanding:  2,968,045 shares at          |                                           
|                                                             |                                                                    | September 30, 2001 and 3,170,985 shares at December 31, 2000         | 34                                        
|                                                             | Additional paid-in capital                                         | 10,291                                                               |                                           
|                                                             | Retained earnings                                                  | 31,319                                                               |                                           
|                                                             | Treasury stock, at cost (432,731 shares at September 30, 2001 and  |                                                                      |                                           
|                                                             |                                                                    | 229,791 shares at December 31, 2000)                                 | (5,008)                                   
|                                                             | Accumulated other comprehensive income                             | 529                                                                  |                                           
|                                                             | Unallocated shares of employee stock ownership plan (ESOP) 108,870 |                                                                      |                                           
|                                                             |                                                                    | shares at September 30, 2001 and 115,536 shares at December 31, 2000 | (762)                                     
|                                                             | Unearned compensation                                              | (196)                                                                |                                           
|                                                             |                                                                    |                                                                      | Total shareholders' equity                
|                                                             |                                                                    |                                                                      | Total liabilities and shareholders' equity

See accompanying notes to unaudited condensed consolidated financial statements.

ROME BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Income

For the Three Months and Nine Months Ended September 30, 2001 and 2000

(unaudited, in thousands, except share data)



|                           |                                   |                                                     | For the three months ended |               | For the nine months ended
|-------------------------- | --------------------------------- | --------------------------------------------------- | -------------------------- | ------------- | -------------------------
|                           |                                   |                                                     | September 30,              |               | September 30,            
|                           |                                   |                                                     | 2001                       |               | 2000                     
|Interest income:           |                                   |                                                     |                            |               |                          
|                           | Loans                             | $       3,387                                       |                            | $       3,120 |                          
|                           | Securities                        | 610                                                 |                            | 808           |                          
|                           | Other short-term investments      | 162                                                 |                            | 120           |                          
|                           |                                   | Total interest income                               | 4,159                      |               | 4,048                    
|                           |                                   |                                                     |                            |               |                          
|Interest expense:          |                                   |                                                     |                            |               |                          
|                           | Deposits                          | 1,476                                               |                            | 1,622         |                          
|                           | Borrowings                        | 308                                                 |                            | 30            |                          
|                           |                                   | Total interest expense                              | 1,784                      |               | 1,652                    
|                           |                                   |                                                     |                            |               |                          
|                           |                                   | Net interest income                                 | 2,375                      |               | 2,396                    
|                           |                                   |                                                     |                            |               |                          
|Provision for loan losses  | 125                               |                                                     | 50                         |               | 125                      
|                           |                                   | Net interest income after provision for loan losses | 2,250                      |               | 2,346                    
|                           |                                   |                                                     |                            |               |                          
|Non-interest income:       |                                   |                                                     |                            |               |                          
|                           |                                   | Net gain (loss) on securities transactions          | -                          |               | -                        
|                           |                                   | Other                                               | 258                        |               | 239                      
|Total non-interest income  | 258                               |                                                     | 239                        |               | 761                      
|                           |                                   |                                                     |                            |               |                          
|                           |                                   |                                                     |                            |               |                          
|Non-interest expense:      |                                   |                                                     |                            |               |                          
|                           | Salaries and employee benefits    | 874                                                 |                            | 939           |                          
|                           | Building, occupancy and equipment | 311                                                 |                            | 311           |                          
|                           | Other                             | 573                                                 |                            | 592           |                          
|                           |                                   | Total non-interest expense                          | 1,758                      |               | 1,842                    
|                           |                                   |                                                     |                            |               |                          
|                           |                                   |                                                     |                            |               |                          
|                           |                                   | Income before income tax expense                    | 750                        |               | 743                      
|Income tax expense         | 257                               |                                                     | 223                        |               | 797                      
|                           |                                   | Net income                                          | $         493              |               | 520                      
|                           |                                   |                                                     |                            |               |                          
|Basic earnings per share   | $0.17                             |                                                     | $0.17                      |               | $0.54                    
|Diluted earnings per share | $0.16                             |                                                     | $0.17                      |               | $0.53                    

See accompanying notes to unaudited condensed consolidated financial statements.

ROME BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statement of Shareholders

For the Nine Months Ended September 30, 2001

(in thousands, except share data)



|                                                                 |                            |                            |          |  |            |       |          |  |          |     | Accumulated   |  |             |  |              |       |      
|---------------------------------------------------------------- | -------------------------- | -------------------------- | -------- |  | ---------- | ----- | -------- |  | -------- | --- | ------------- |  | ----------- |  | ------------ | ----- | -----
|                                                                 |                            |                            |          |  | Additional |       |          |  |          |     | other         |  | Unallocated |  |              |       |      
|                                                                 |                            |                            | Common   |  | paid-in    |       | Retained |  | Treasury |     | comprehensive |  | ESOP        |  | Unearned     |       |      
|                                                                 |                            |                            | stock    |  | capital    |       | earnings |  | stock    |     | income        |  | shares      |  | compensation |       | Total
|                                                                 |                            |                            |          |  |            |       |          |  |          |     |               |  |             |  |              |       |      
|Balances at December 31, 2000                                    | $ 34                       |                            | $ 10,216 |  | $30,347    |       | $(1,722) |  | $ 216    |     | $(809)        |  | $(235)      |  | $38,047     
|Comprehensive income:                                            |                            |                            |          |  |            |       |          |  |          |     |               |  |             |  |             
|                                                                 | Net income                 |                            |          |  |            | 1,608 |          |  |          |     |               |  |             |  |              | 1,608
|                                                                 | Other comprehensive income |                            |          |  |            |       |          |  |          | 313 |               |  |             |  |              | 313  
|                                                                 |                            | Total comprehensive income |          |  |            |       |          |  |          |     |               |  |             |  |              |       | 1,921
|Purchase of treasury stock (209,500 shares)                      |                            |                            |          |  |            |       | (3,343)  |  |          |     |               |  |             |  | (3,343)     
|Exercise of stock options and related tax benefit (6,560 shares) |                            |                            | 9        |  |            |       | 57       |  |          |     |               |  |             |  | 66          
|Amortization and  tax benefits of unearned Compensation          |                            |                            | 40       |  |            |       |          |  |          |     |               |  | 39          |  | 79          
|Dividends paid ($0.14 per share)                                 |                            |                            |          |  | (640)      |       |          |  |          |     |               |  |             |  | (640)       
|ESOP shares released for                                         |                            |                            | 26       |  | 4          |       |          |  |          |     | 47            |  |             |  | 77          
|                                                                 | allocation (6,666 shares)  |                            |          |  |            |       |          |  |          |     |               |  |             |  |              |      
|                                                                 |                            |                            |          |  |            |       |          |  |          |     |               |  |             |  |              |       |      
|Balances at September 30, 2001                                   | $ 34                       |                            | $10,291  |  | $31,319    |       | $(5,008) |  | $529     |     | $(762)        |  | $(196)      |  | $36,207     
|                                                                 |                            |                            |          |  |            |       |          |  |          |     |               |  |             |  |             

See accompanying notes to unaudited condensed consolidated financial statements.

ROME BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2001 and 2000

(unaudited, in thousands)

|                                                 |                                                      |                                   |                                                    |                                           |                |               |          | 2001           |  | 2000
|------------------------------------------------ | ---------------------------------------------------- | --------------------------------- | -------------------------------------------------- | ----------------------------------------- | -------------- | ------------- | -------- | -------------- |  | ----
|Cash flows from operating activities:            |                                                      |                                   |                                                    |                                           |                |              
|                                                 | Net income                                           |                                   |                                                    |                                           |                | $       1,608 |          | $        1,447
|                                                 | Adjustments to reconcile net income to net cash      |                                   |                                                    |                                           |               
|                                                 |                                                      | provided by operating activities: |                                                    |                                           |                |               |         
|                                                 |                                                      |                                   | Depreciation and amortization                      |                                           |                | 304           |          | 364           
|                                                 |                                                      |                                   | Decrease (increase) in accrued interest receivable | 17                                        |                | (123)        
|                                                 |                                                      |                                   | Provision for loan losses                          | 125                                       |                | 50           
|                                                 |                                                      |                                   | Net loss on securities transactions                | -                                         |                | 86           
|                                                 |                                                      |                                   | Net (gains) losses on sales of real estate owned   | (5)                                       |                | 8            
|                                                 |                                                      |                                   | Net accretion on securities                        |                                           |                | (30)          |          | (42)          
|                                                 |                                                      |                                   | Increase in other liabilities                      |                                           |                | 112           |          | 203           
|                                                 |                                                      |                                   | Decrease (increase) in other assets                |                                           |                | 129           |          | 23            
|                                                 |                                                      |                                   | Allocation of ESOP shares                          |                                           |                | 77            |          | 47            
|                                                 |                                                      |                                   | Amortization of Unearned Compensation              |                                           | 39             |               | 13      
|                                                 |                                                      |                                   | Tax benefit from exercise of stock options         |                                           | 17             |               | 0       
|                                                 |                                                      |                                   |                                                    | Net cash provided by operating activities |                | 2,393         |          | 2,076         
|                                                 |                                                      |                                   |                                                    |                                           |                |               |          |                |  |     
|Cash flows from investing activities:            |                                                      |                                   |                                                    |                                           |                |              
|                                                 | Purchased loans                                      |                                   |                                                    |                                           | -              |               | (10,180)
|                                                 | Net (increase) in loans                              |                                   |                                                    |                                           | (4,125)        |               | (6,435) 
|                                                 | Proceeds from sale of education loans                |                                   | 64                                                 |                                           | 308           
|                                                 | Proceeds from sales of securities available for sale |                                   | -                                                  |                                           | 2532          
|                                                 | Proceeds from maturities and principal reductions of |                                   |                                                    |                                           |               
|                                                 |                                                      | securities available for sale     |                                                    |                                           |                | 12,710        |          | 5113          
|                                                 | Purchases of securities available for sale           |                                   |                                                    | (17,767)                                  |                | (7,121)      
|                                                 | Purchases of securities held to maturity             |                                   |                                                    | -                                         |                | (1,040)      
|                                                 | Proceeds from maturities and principal reductions of |                                   |                                                    |                                           |               
|                                                 |                                                      | securities held to maturity       |                                                    |                                           |                | 87            |          | 577           
|                                                 | Proceeds from sales of real estate owned             |                                   |                                                    | 50                                        |                | 271          
|                                                 | Additions to premises and equipment                  |                                   |                                                    | (144)                                     |                | (84)         
|                                                 |                                                      |                                   |                                                    | Net cash used in investing activities     | (9,125)        |               | (16,059)
|                                                 |                                                      |                                   |                                                    |                                           |                |               |          |                |  |     
|Cash flows from financing activities:            |                                                      |                                   |                                                    |                                           |                |              
|                                                 | Increase (decrease) in time deposits                 |                                   |                                                    | 1,539                                     |                | (5,194)      
|                                                 | Increase in other deposits                           |                                   |                                                    |                                           | 5,049          |               | 6,001   
|                                                 | Repayments of borrowings                             |                                   |                                                    |                                           | (1694)         |               | 10,000  
|                                                 | Purchase of treasury stock                           |                                   |                                                    |                                           | (3,343         |               | (1,258) 
|                                                 | Dividends                                            |                                   |                                                    |                                           |                | (640)         |          | (498)         
|                                                 | Exercise of stock options (6,560 shares)             |                                   |                                                    | 49                                        |                | -            
|                                                 |                                                      |                                   |                                                    | Net cash used in financing activities     |                | 960           |          | 9,051         
|                                                 |                                                      |                                   |                                                    |                                           |                |               |          |                |  |     
|Net (decrease) in cash and cash equivalents      |                                                      | (5,772)                           |                                                    | (5,192)                                  
|Cash and cash equivalents at beginning of period |                                                      |                                   | 20,800                                             |                                           | 16,061        
|Cash and cash equivalents at end of period       |                                                      |                                   | $      15,028                                      |                                           | $       10,869
|                                                 |                                                      |                                   |                                                    |                                           |               





|                                                  |                                            |  | 2001 |                        | 2000 
|------------------------------------------------- | ------------------------------------------ |  | ---- | ---------------------- | -----
|Supplemental disclosure of cash flow information: |                                            |  |      |                        |      
|                                                  | Non-cash investing activities:             |  |      |                        |      
|                                                  | Change in securities purchased not settled |  |      | $                    0 |      
|                                                  | Transfer of loans to real estate owned     |  |      | 45                     |      
|                                                  | Cash paid during the period for:           |  |      |                        |      
|                                                  | Interest                                   |  |      |                        | 5,595
|                                                  | Income taxes                               |  |      |                        | 470  



See accompanying notes to unaudited condensed consolidated financial statements.



ROME BANCORP, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

(1)	Basis of Presentation



The accompanying unaudited condensed consolidated financial statements include the accounts of Rome Bancorp, Inc. (the "Company") and The Rome Savings Bank (the "Bank"), a wholly-owned subsidiary of the Company, as of September 30, 2001 and December 31, 2000 and for the three-month and nine-month periods ended September 30, 2001 and 2000.  Material intercompany accounts and transactions have been eliminated in consolidation.  The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  In the opinion of management the unaudited condensed consolidated financial statements include all necessary adjustments, consisting of normal recurring accruals, necessary for a fair presentation for the periods presented.



Rome Bancorp, Inc. believes that the disclosures are adequate to make the information presented not misleading; however, the results for the periods presented are not necessarily indicative of results to be expected for the entire fiscal year.



The data in the condensed consolidated balance sheet for December 31, 2000 was derived from the Company's 2000 Annual Report on Form 10-KSB.  That data, along with the interim financial information presented in the condensed consolidated balance sheet, statements of income, statement of shareholders' equity and comprehensive income and statements of cash flows should be read in conjunction with the 2000 consolidated financial statements, including the notes thereto.



Amounts in the prior period's consolidated financial statements are reclassified when necessary to conform to the current period's presentation.





1. Earnings Per Share



The following summarizes the computation of earnings per share for the three-month and nine-month periods ended September 30, 2001 and 2000 (in thousands, except share data):

|                                            | For the three months ended |               | For the six months ended
|------------------------------------------- | -------------------------- | ------------- | ------------------------
|                                            |                            | September 30, |                         
|                                            | 2001                       |               | 2000                    
|Basic earnings per share:                   |                            |               |                         
|Income available to common shareholders     | $            493           |               | 520                     
|Weighted average basic shares outstanding   | 2,966                      |               | 3,068                   
|                                            |                            |               |                         
|Basic earnings per share                    | 0.17                       |               | 0.17                    
|                                            |                            |               |                         
|Diluted earnings per share:                 |                            |               |                         
|Income available to common shareholders     | $             493          |               | $             520       
|Weighted average basic shares outstanding   | 2966                       |               | 3068                    
|Effect of dilutive securities:              |                            |               |                         
|Stock options                               | 56                         |               | -                       
|Unearned compensation                       | 9                          |               | -                       
|Weighted average diluted shares outstanding | 3,031                      |               | 3,068                   
|                                            |                            |               |                         
|Diluted earnings per share                  | $           0.16           |               | $            0.17       



1. Comprehensive Income
2. Recent Accounting Pronouncements



SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended, establishes accounting and reporting standards for derivative instruments, including certain derivatives embedded in other contracts, and for hedging activities.  This standard requires that all derivative financial instruments be measured at fair value and recognized in the statement of condition as either assets or liabilities.  Changes in the fair value of the derivative financial instruments will be reported in either earnings or comprehensive income, depending on the use of the derivative and whether or not it qualifies for hedge accounting.  Consequently, there may be increased volatility in net income and shareholders' equity on an ongoing basis as a result of accounting for derivatives in accordance with the standards.



The Company adopted the standards on January 1, 2001 and the initial adoption did not have a material effect on the Company's consolidated financial statements.  The Company does not currently utilize derivative financial instruments, accordingly, all disclosures required by the standards have been omitted.



In September 2000, the FASB issued SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.  SFAS No. 140 replaces identically titled SFAS No. 125 and carries forward most of SFAS No. 125's provisions without change.  It does revise accounting standards for securitizations and certain other transfers of financial assets and collateral.  The statement is generally applied prospectively to transactions and servicing activities occurring after March 31, 2001, although provisions with respect to collateral and certain disclosure requirements were adopted on December 31, 2000 and did not have a material impact on the consolidated financial statements of the Company.  The remaining provisions of this statement were adopted on April 1, 2001 and the initial adoption did not have a material impact on the consolidated financial statements of the Company.



In July 2001, the FASB issued SFAS No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets.  SFAS No. 141 requires that the purchase method of accounting be used for all business combinations initiated after September 30, 2001 as well as all purchase method business combinations competed after September 30, 2001.  SFAS No. 141 also specifies criteria that must be met for intangible assets acquired in a purchase method business combination to be recognized and reported apart from goodwill, noting that any purchase price allocable to an assembled workforce may not be accounted for separately.  SFAS No. 142 will require that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment at least annually in accordance with the provisions of SFAS No. 142.  SFAS No. 142 will also require that intangible assets with definite useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment at least annually.



The Company is required to adopt the provisions of SFAS No. 141 immediately.  Furthermore, any goodwill and any intangible asset determined to have an indefinite useful life that are acquired in a purchase business combination completed after September 30, 2001 will not be amortized, but will continue to be evaluated for impairment in accordance with the appropriate pre-SFAS No. 142 accounting literature.



As of September 30, 2001, the Company has no unamortized goodwill or acquired intangibles; therefore, there will be no impact of adopting these statements on the Company's financial statements.





Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations



Forward-Looking Statements



Statements included in this discussion and in future filings by Rome Bancorp, Inc. with the Securities and Exchange Commission, in Rome Bancorp, Inc. press releases, and in oral statements made with the approval of an authorized executive officer, which are not historical or current facts, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected.  Rome Bancorp, Inc. wishes to caution readers not to place undue reliance on such forward-looking statements, which speak only as of the date made.  The following important factors, among others, in some cases have affected and in the future could affect Rome Bancorp, Inc. actual results, and could cause Rome Bancorp, Inc. actual financial performance to differ materially from that expressed in any forward-looking statement:  (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards, may adversely affect the business in which the Company is engaged; (6) competitors may have greater financial resources and developed products that enable such competitors to compete more successfully than the Company; and (7) adverse changes may occur in the securities markets or with respect to inflation.  The foregoing list should not be construed as exhaustive, and Rome Bancorp, Inc. disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events.

Comparison of Financial Condition at September 30, 2001 and December 31, 2000:



Total assets at September 30, 2001 were $248.0 million, a $3.2 million, or 1.3% increase from  $244.8 million at December 31, 2000.  Securities available for sale increased $5.6 million or 11.8% from $47.4 million at December 31, 2000 to $53.0 million at September 30, 2001.  The increase principally represented purchases of $17.8 million less maturities of $12.7 million, and an increase in their fair market value of $521,000 at September 30, 2001 in comparison to December 31, 2000.  Total loans increased $3.7 million or 2.2% from $167.5 million at December 31, 2000 to $171.2 million at September 30, 2001.  The increase was principally the result of a $1.9 million increase in commercial real estate loans and a $1.5 million increase in consumer loans.



Total deposits increased $6.6 million or 3.6% from $183.2 million at December 31, 2000 to $189.8 million at September 30, 2001.  All deposit categories experienced moderate growth except for other interest bearing deposits which decreased slightly.  Management attributes the increase in total deposits to its active marketing of non-interest bearing demand deposit accounts and a limited shift in consumer preferences away from equity markets to insured bank deposits.





Comparison of Operating Results for the Three-Month Periods Ended September 30, 2001 and 2000



General



Net income for the Company for the three-month period ended September 30, 2001 was $493,000 or $0.17 per basic share, representing a decrease of $27,000 or 5.2% compared to $520,000 or $0.17 per basic share for the same period in 2000.  The decrease in net income resulted from a $21,000 decrease in net interest income, a $75,000 increase in loan loss provisions, and a $34,000 increase in income tax expense partially offset by a $19,000 increase in non-interest income and a $84,000 decrease in non-interest expense.  The decrease in net interest income was caused by a  $132,000 increase in total interest expense partially offset by a $111,000 increase in total interest income.  Basic earnings per share remained the same despite the decrease in net income as a result of a decrease in the weighted average number of shares outstanding to 2,966,472 in comparison to 3,068,116 for the same period in 2000 primarily as a result of the Company's stock repurchase program.



Interest Income



Interest income increased from $4.0 million for the three-month period ended September 30, 2000 to $4.2 million for the three-month period ended September 30, 2001.  The increase in interest income was the result of a $267,000 increase in interest on loans and a $42,000 increase in interest on short-term investments offset in part by a $198,000 reduction in interest income on securities.

The increase in interest income on loans was primarily due to an increase in the volume of loans for the three-month period ended September 30, 2001 compared to the same period in 2000.  Average loans increased from $147.9 million for the three-month period ended September 30, 2000 to $167.5 million for the same period in 2001.  This increase was primarily due to $20.2 million in loans purchased with recourse from other financial institutions in the third and fourth quarters of 2000.  The increase in average loans resulted in a $400,000 increase in interest income.   Partially offsetting the increase in interest income from the increase in average loans was a decline in the yield on loans from 8.39% for the three-month   period September 30, 2000 to 8.02% for the three-month period ended September 30, 2001.  The decline in yield resulted in a $133,000 reduction in interest income.  The decrease in the yield on loans was directly attributable to the general decline in interest rates during this period.

The decrease in interest income on securities reflected a decrease in the average balance of securities from $58.2 million for the three-month period ended September 30, 2000 to $47.4 million for the three-month period ended September 30, 2001.  The decrease in interest income on securities was also caused by a decrease in the yield on securities on a tax equivalent basis from 6.24% for the three-month period ended September 30, 2000 to 5.58% for the same period in 2001.



Interest Expense



Interest expense increased from $1.7 million for the three-month period ended September 30, 2000 to $1.8 million for the three-month period ended September 30, 2001.  The increase in interest expense was primarily a result of the Company having outstanding borrowings of only $1.7 million in the three-month period ended September 30, 2000 compared to $18.2 million for the three-month period ended September 30, 2001.  The increase in borrowings caused a $278,000 increase in interest expense.  These borrowings were used to fund the purchase of loans discussed above.

The increase in interest expense caused by borrowings was partially offset by a decrease in the cost of deposits from $1.6 million for the three-month period ended September 30, 2000 to $1.5 million for the three-month period ended September 30, 2001.  The decrease in interest expense on deposits was primarily a result of a decline in the average cost from 4.03% for the three-month period ended September 30, 2000 to 3.59% for the three-month period ended September 30, 2001.  Partially offsetting the decline in interest expense from the decrease in average cost, was an increase in the deposits average balance from $160.1 million for the three-month period ended September 30, 2000 to $163.4 million for the three-month period ended September 30, 2001.  The decrease in the average cost of deposits was primarily a result of a decrease in the average rate paid on savings deposits to 2.29% for the three-month period ended September 30, 2001 in comparison to 3.12% for the three-month period ended September 30, 2000.   The increase in the average balance of  interest-bearing deposits is attributed to a limited shift in consumer preferences away from equity markets to insured bank deposits.



Provision for Loan Losses



The Company made a $125,000 provision for loan losses for the three months ended September 30, 2001 in comparison to $50,000 for the same period in 2000.  The increase in the provision for loan losses reflects increased net charge-offs during 2001. It also reflects deteriorating economic conditions as a result of a nation-wide economic slowdown and the consequent uncertainty created by the slow-down's impact on the Company's loan portfolio.



In determining the appropriate provision for loan losses, management considers the level of and trend in non-performing loans, the level of and trend in net loan charge-offs, the dollar amount and mix of the loan portfolio, as well as general economic conditions and real estate trends in the Company's market area, which can impact the inherent risk of loss in the Company's loan portfolio.



Non-interest Income and Non-interest Expense



Non-interest income increased from $239,000 for the three-month period ended September 30, 2000 to $258,000 for the three-month period ended September 30, 2001.  The increase in non-interest income was principally related to an increase in checking account fees on commercial checking accounts.

Non-interest expense decreased $84,000 to $1.8 million for the three-month period ended September 30, 2001 as a result of a $65,000 decrease in salaries and employee benefits and a $19,000 decrease in other corporate expenses.  The $65,000 decrease in salaries and employee benefits was principally related to a decrease in the Company's pension expense.

Income Tax Expense

Income tax expense increased $34,000 from $223,000 for the three-month period ended September 30, 2000 to $257,000 for the three-month period ended September 30, 2001.  This increase is primarily due to the increase in pre-tax net income as well as the Company having fewer non-taxable municipal securities in 2001 compared to 2000.



Comparison of Operating Results for the Nine-Month Periods Ended September 30, 2001 and 2000



General



Net income for the Company for the nine-month period ended September 30, 2001 was $1.6 million or $0.54 per basic share, representing an increase of $161,000 or 11.1% compared to $1.4 million or $0.46 per basic share for the same period in 2000.  The increase in net income resulted from a $134,000 increase in net interest income, a $163,000 increase in non-interest income, and a $144,000 decrease in non-interest expense partially offset by a $75,000 increase in provision for loan losses and a $205,000 increase in income tax expense.  The increase in net interest income was caused by a $903,000 increase in total interest income partially offset by a $769,000 increase in total interest expense.  Basic earnings  per share increased 17.4% to $0.54 per basic share for the nine months ended September 30, 2001 in comparison to $0.46 per basic share for the same period in 2000 as a result of the increase in net income for the Company as well as a decrease in the weighted average number of shares outstanding to 2,984,503 for the nine months ended September 30, 2001 in comparison to 3,165,240 for the same period in 2000. The decrease in weighted average shares outstanding was the result of the Company's stock repurchase program.

Interest Income



Interest income increased from $11.8 million for the nine-month period ended September 30, 2000 to $12.7 million for the nine-month period ended September 30, 2001.  The increase in interest income was the result of a $1.2 million increase in interest on loans and a $302,000 increase in interest income on short-term investments offset in part by a $595,000 reduction in interest income on securities.

The increase in interest income on loans was primarily due to an increase in the volume of loans for the nine-month period ended September 30, 2001 compared to the same period in 2000.  Average loans increased from $145.0 million for the nine-month period ended September 30, 2000 to $165.8 million for the same period in 2001.  This increase is primarily due to the purchase of loans discussed above.  The increase in average loans resulted in a $1.3 million increase in interest income.  A decline in the yield on loans from 8.36% for the nine-month period September 30, 2000 to 8.29% for the nine-month period ended September 30, 2001 resulted in a $80,000 reduction in interest income.  The decrease in the yield on loans was directly attributable to the general decline in interest rates during this period.

The increase in interest income on short-term investments was primarily a result of an increase in their average balance from $7.2 million for the nine-month period ended September 30, 2000 to $19.1 million for the nine-month period ended September 30, 2001 offset in part by a decrease in their average yield from 5.92% for the nine-month period ended September 30, 2000 to 4.37% for the nine-month period ended September 30, 2001.

Interest income on securities decreased $595,000 from $2.4 million for the nine-month period ended September 30, 2000 to $1.8 million for the nine-month period ended September 30, 2001 reflecting a decrease in the average balance of securities from $58.4 million for the nine-month period ended September 30, 2000 to $47.6 million for the same period in 2001.  The decrease in interest income on securities was also caused by a decrease in the yield on securities from 6.27% for the nine-month period ended September 30, 2000 to 5.64% for the nine-month period ended September 30, 2001.  The decrease in interest income on securities was partially offset by a $302,000 increase in interest income on other short-term investments from $321,000 for the nine-month period ended September 30, 2000 to $623,000 for the nine-month period ended September 30, 2001.



Interest Expense



Interest expense increased from $4.8 million for the nine-month period ended September 30, 2000 to $5.6 million for the nine-month period ended September 30, 2001.  The increase in interest expense was primarily a result of the Company having outstanding borrowings of only $586,000 in the nine-month period ended September 30, 2000 compared to $18.7 million for the nine-month period ended September 30, 2001.  The increased borrowings were used to fund the purchase of loans discussed above.



Provision for Loan Losses



The Company made a $125,000 provision for loan losses for the nine months ended September 30, 2001 in comparison to $50,000 for the same period in 2000.  Management believes the September 30, 2001 allowance for loans losses to be adequate at .84% of total loans.



Non-interest Income and Non-interest Expense



Non-interest income increased from $598,000 for the nine-month period ended September 30, 2000 to $761,000 for the nine-month period ended September 30, 2001.  The increase in non-interest income was caused by an $86,000 loss on securities transactions in the nine-month period ended September 30, 2000 compared to no gain or loss for the same period in 2001 and an increase in service charges and fees from $684,000 for the nine-month period ended September 30, 2000 to $761,000 for the nine-month period ended September 30, 2001.  The increase in service charges and fees was principally related to the cumulative effect of an increase in amounts charged on checking accounts beginning in the third and fourth quarter of 2000.



Non-interest expense decreased $144,000 to $5.4 million for the nine-month period ended September 30, 2001 principally as a result of $87,000 decrease in salaries and employee benefits and a $73,000 decrease in other corporate expenses.  The decrease in salaries and employee benefits was principally related to a decrease in the Company's pension expense.  The decrease in other corporate expenses was primarily caused by a $211,000 decrease in outside consulting expense offset in part by a $97,000 increase in expenses related to loan operations.  The consulting fees incurred during the nine-month period ended September 30, 2000 related to a profit improvement study and implementation of tax strategies.



Income Tax Expense

Income tax expense increased $205,000 from $592,000 for the nine-month period ended September 30, 2000 to $797,000 for the nine-month period ended September 30, 2001.  This increase is due to the same reasons noted above in the discussion of the three-month periods ended September 30, 2001 and 2000.



Liquidity and Capital Resources



The Company's primary sources of funds consist of deposits, scheduled amortization and prepayments of loans and mortgage-backed securities, maturities of investments, interest bearing deposits at other financial institutions and funds provided from operations.  The Bank also has a written agreement with the Federal Home Loan Bank of New York that allows it to borrow up to $22.6 million.  At September 30, 2001, the Bank had no outstanding borrowings on this line of credit, but did have outstanding advances and an amortizing note totaling $17.9 million.



Loan repayments and maturing investment securities are a relatively predictable source of funds. However, deposit flows, calls of investment securities, and prepayments of loans and mortgage-backed securities are strongly influenced by interest rates, general and local economic conditions, and competition in the marketplace.  These factors reduce the predictability of the timing of these sources of funds.



The Company's primary investing activities include the origination of loans and to a lesser extent the purchase of investment securities.  For the three-month period ended September 30, 2001 the Company originated loans of approximately $10.9 million and for the three-month period ended September 30, 2000, the Company originated loans of approximately $8.2 million.  Purchases of securities were $10.6 million for the three-month period ending September 30, 2001 and $2.0 million for the same period in 2000.



At September 30, 2001, the Company had loan commitments to borrowers of approximately $10.6 million, and available letters and lines of credit of approximately $5.7 million.  Total deposits were $189.8 million at September 30, 2001, an increase of $6.6 million from $183.2 million at December 31, 2000.



Time deposit accounts scheduled to mature within one year were $51 million at September 30, 2001. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of these time deposits will remain with the Company.  We are committed to maintaining a strong liquidity position; therefore, the Company monitors its liquidity position on a daily basis.  The Company anticipates that it will have sufficient funds to meet its current funding commitments.  The marginal cost of new funding however, whether from deposits or borrowings from the Federal Home Loan Bank, will be carefully considered as the Company monitors its liquidity needs.  Therefore, in order to minimize its cost of funds, the Company may consider additional borrowings from the Federal Home Loan Bank in the future.



At September 30, 2001, the Company and the Bank exceeded each of the applicable regulatory capital requirements.  The Company's and the Bank's leverage (Tier 1) capital at September 30, 2001 was $35.3 million and $32.4 million, respectively, or 14.3% and 13.0% of average assets, respectively.   In order to be classified as "well-capitalized" by the FDIC, the Bank is required to have leverage (Tier 1) capital of $12.3 million, or 5.0% of average assets.  The Company's and the Bank's total risk-based capital ratio at September 30, 2001 was 20.0% and 21.6%, respectively.  To be classified as a well-capitalized bank by the FDIC, the Bank must have a total risk-based capital ratio of 10.0%.



The Company paid cash dividends of $0.07 and $.0525 per share during the three-month periods ended September 30, 2001 and 2000, respectively.  During the three-month period ended September 30, 2001, the Company repurchased 150,000 shares of common stock at a cost of $2.6 million.



The Company does not anticipate any material capital expenditures, nor does it have any balloon or other payments due on any long-term obligations or any off-balance sheet items other than the commitments and unused lines of credit noted above.





Part II - OTHER INFORMATION



Item 1.	Legal Proceedings



None.



Item 2.	Changes in Securities and Use of Proceeds



None.



Item 3.	Defaults Upon Senior Securities



None.



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



None



Item 5.	Other Information



None.



Item 6.	Exhibits and Reports on Form 8-K



(a)	None.

(b)	Reports on Form 8-K

None.





SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



Rome Bancorp, Inc.

By:	/s/ Charles M. Sprock

Charles M. Sprock

President and Chief Executive Officer

By:	/s/ David C. Nolan

David C. Nolan

Treasurer and Chief Financial Officer



Date:  November 14, 2001