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 March 31, 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)

Delaware			16-1573070

(State or Other Jurisdiction of					(I.R.S. Employer

Incorporation or Organization)					Identification No.)

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	May 8, 2001

Common Stock, par value $.01 			    3,126,485

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





ROME BANCORP, INC.

FORM 10-QSB FOR THE QUARTER ENDED MARCH 31, 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                 | 9   
|        |                       |                                                     |     
|PART II | OTHER INFORMATION     | 14                                                 
|        |                       |                                                     |     
|        | ITEM 1.               | LEGAL PROCEEDINGS                                   | 14  
|        | ITEM 2.               | CHANGES IN SECURITIES AND USE OF PROCEEDS           | 14  
|        | ITEM 3.               | DEFAULTS UPON SENIOR SECURITIES                     | 14  
|        | ITEM 4.               | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 14  
|        | ITEM 5.               | OTHER INFORMATION                                   | 14  
|        | ITEM 6.               | EXHIBITS AND REPORTS ON FORM 8-K                    | 14  

PART I  FINANCIAL INFORMATION

Item 1.  Financial Statements

ROME BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Balance Sheet

March 31, 2001 and December 31, 2000

(in thousands, except share data)

|                                                             |                                                                     |                                                                  |                                           
|------------------------------------------------------------ | ------------------------------------------------------------------- | ---------------------------------------------------------------- | ------------------------------------------
|                                                             |                                                                     |                                                                  |                                           
|                                                             |                                                                     |                                                                  |                                           
|                                                             |                                                                     |                                                                  |                                           
|Assets                                                       |                                                                     |                                                                  |                                           
|                                                             |                                                                     |                                                                  |                                           
|Cash and due from banks                                      | $               6,007                                               |                                                                  | 6,600                                     
|Federal funds sold and other short-term investments          | 18,840                                                              |                                                                  | 14,200                                    
|                                                             | Total cash and cash equivalents                                     | 24,847                                                           |                                           
|Securities available for sale, at fair value                 | 45,511                                                              |                                                                  | 47,403                                    
|Securities held to maturity (fair value of $1,848 and $1,854 |                                                                     |                                                                  |                                           
|                                                             | at March 31, 2001 and December 31, 2000, respectively)              | 1,767                                                            |                                           
|Loans                                                        |                                                                     |                                                                  | 166,171                                   
|                                                             | Less: Allowance for loan loss                                       | 1,513                                                            |                                           
|                                                             |                                                                     | Net loans                                                        | 164,658                                   
|Premises and equipment, net                                  | 3,334                                                               |                                                                  | 3,389                                     
|Accrued interest receivable                                  | 1,601                                                               |                                                                  | 1,678                                     
|Other assets                                                 | 3,649                                                               |                                                                  | 3,922                                     
|                                                             |                                                                     | Total assets                                                     | 245,367                                   
|                                                             |                                                                     |                                                                  |                                           
|Liabilities & Equity                                         |                                                                     |                                                                  |                                           
|                                                             |                                                                     |                                                                  |                                           
|Liabilities                                                  |                                                                     |                                                                  |                                           
|                                                             | Deposits:                                                           |                                                                  |                                           
|                                                             |                                                                     | Non-interest bearing                                             | 22,917                                    
|                                                             |                                                                     | Savings                                                          | 79,185                                    
|                                                             |                                                                     | Money market                                                     | 5,803                                     
|                                                             |                                                                     | Time                                                             | 73,741                                    
|                                                             |                                                                     | Other interest bearing                                           | 2,717                                     
|                                                             |                                                                     |                                                                  | Total deposits                            
|                                                             | Borrowings                                                          | 19,080                                                           |                                           
|                                                             | Other liabilities                                                   | 3,893                                                            |                                           
|                                                             |                                                                     |                                                                  | Total liabilities                         
|                                                             |                                                                     |                                                                  |                                           
|Shareholders' equity                                         |                                                                     |                                                                  |                                           
|                                                             | Common Stock, $.01 par value; authorized: 5,000,000 shares;         |                                                                  |                                           
|                                                             |                                                                     | issued: 3,400,776 shares; outstanding 3,136,485 shares at        |                                           
|                                                             |                                                                     | March 31, 2001 and 3,170,985 shares at December 31, 2000         | 34                                        
|                                                             | Additional paid-in capital                                          | 10,221                                                           |                                           
|                                                             | Retained earnings                                                   | 30,687                                                           |                                           
|                                                             | Treasury stock, at cost (264,291 shares at March 31, 2001 and       |                                                                  |                                           
|                                                             |                                                                     | 229,791 shares at December 31, 2000)                             | (2,146)                                   
|                                                             | Accumulated other comprehensive income                              | 250                                                              |                                           
|                                                             | Unallocated shares of employee stock ownership plan (ESOP); 113,314 |                                                                  |                                           
|                                                             |                                                                     | shares at March 31, 2001 and 115,536 shares at December 31, 2000 | (793)                                     
|                                                             | Unearned compensation                                               | (222)                                                            |                                           
|                                                             |                                                                     |                                                                  | 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 Ended March 31, 2001 and 2000

(unaudited, in thousands, except share data)



|                           |                                   |                                                     | For the three months ended
|-------------------------- | --------------------------------- | --------------------------------------------------- | --------------------------
|                           |                                   |                                                     |                           
|                           |                                   |                                                     | 2001                      
|Interest income:           |                                   |                                                     |                           
|                           | Loans                             | $      3,442                                        |                           
|                           | Securities                        | 641                                                 |                           
|                           | Other short-term investments      | 235                                                 |                           
|                           |                                   | Total interest income                               | 4,318                     
|                           |                                   |                                                     |                           
|Interest expense:          |                                   |                                                     |                           
|                           | Deposits                          | 1,669                                               |                           
|                           | Borrowings                        | 323                                                 |                           
|                           |                                   | Total interest expense                              | 1,992                     
|                           |                                   |                                                     |                           
|                           |                                   | Net interest income                                 | 2,326                     
|                           |                                   |                                                     |                           
|Provision for loan losses  | -                                 |                                                     | -                         
|                           |                                   | Net interest income after provision for loan losses | 2,326                     
|                           |                                   |                                                     |                           
|Total non-interest income  | 131                               |                                                     | 234                       
|                           |                                   |                                                     |                           
|                           |                                   |                                                     |                           
|Non-interest expense:      |                                   |                                                     |                           
|                           | Salaries and employee benefits    | 929                                                 |                           
|                           | Building, occupancy and equipment | 330                                                 |                           
|                           | Other                             | 381                                                 |                           
|                           |                                   | Total non-interest expense                          | 1,640                     
|                           |                                   |                                                     |                           
|                           |                                   |                                                     |                           
|                           |                                   | Income before income tax expense                    | 817                       
|Income tax expense         | 265                               |                                                     | 274                       
|                           |                                   | Net income                                          | $         552             
|                           |                                   |                                                     |                           
|Basic earnings per share   | $        0.18                     |                                                     | 0.16                      
|Diluted earnings per share | $        0.18                     |                                                     | 0.16                      



See accompanying notes to unaudited condensed consolidated financial statements.

ROME BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statement of Shareholders

For the Three Months Ended March 31, 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                 | -                          |        | - |            | 552 |          | - |          | -  |               | -  |             | - |              | 552
|                                           | Other comprehensive income | -                          |        | - |            | -   |          | - |          | 34 |               | -  |             | - |              | 34 
|                                           |                            | Total comprehensive income |        |   |            |     |          |   |          |    |               |    |             |   |              |     | 586  
|Purchase of treasury stock (34,500 shares) | -                          |                            | -      |   | -          |     | (424)    |   | -        |    | -             |    | -           |   | (424)       
|Amortization of Unearned Compensation      | -                          |                            | -      |   | -          |     | -        |   | -        |    | -             |    | 13          |   | 13          
|Dividends paid ($0.07 per share)           | -                          |                            | -      |   | (214)      |     | -        |   | -        |    | -             |    | -           |   | (214)       
|ESOP shares released for                   |                            |                            |        |   |            |     |          |   |          |    |               |    |             |   |             
|                                           | allocation (2,222 shares)  | -                          |        | 5 |            | 2   |          | - |          | -  |               | 16 |             | - |              | 23 
|                                           |                            |                            |        |   |            |     |          |   |          |    |               |    |             |   |              |     |      
|Balances at March 31, 2001                 | $                34        |                            | 10,221 |   | 30,687     |     | (2,146)  |   | 250      |    | (793)         |    | (222)       |   | 38,031      









See accompanying notes to unaudited condensed consolidated financial statements.

ROME BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2001 and 2000

(unaudited, in thousands)



|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         | 2001  |  | 2000
|---------------------------------------------------- | ---------------------------------------------------- | --------------------------------- | -------------------------------------------------- | --------------------------------------------------- | ------ | --------------- | ------- | ----- |  | ----
|Cash flows from operating activities:                |                                                      |                                   |                                                    |                                                     |        |                
|                                                     | Net income                                           |                                   |                                                    |                                                     |        | $           552 |         | 538  
|                                                     | Adjustments to reconcile net income to net cash      |                                   |                                                    |                                                     |       
|                                                     |                                                      | provided by operating activities: |                                                    |                                                     |        |                 |        
|                                                     |                                                      |                                   | Depreciation and amortization                      |                                                     |        | 108             |         | 124  
|                                                     |                                                      |                                   | Decrease (increase) in accrued interest receivable | 77                                                  |        | (68)           
|                                                     |                                                      |                                   | Net gains on sales of real estate owned            | -                                                   |        | (4)            
|                                                     |                                                      |                                   | Net accretion on securities                        |                                                     |        | (14)            |         | (10) 
|                                                     |                                                      |                                   | Decrease in other liabilities                      |                                                     |        | (23)            |         | (9)  
|                                                     |                                                      |                                   | Decrease in other assets                           |                                                     |        | 295             |         | 63   
|                                                     |                                                      |                                   | Allocation of ESOP shares                          |                                                     |        | 23              |         | 15   
|                                                     |                                                      |                                   | Amortization of Unearned Compensation              |                                                     | 13     |                 | -      
|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         |       |  |     
|                                                     |                                                      |                                   |                                                    | Net cash provided by operating activities           |        | 1,031           |         | 649  
|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         |       |  |     
|Cash flows from investing activities:                |                                                      |                                   |                                                    |                                                     |        |                
|                                                     | Net decrease (increase) in loans                     |                                   |                                                    |                                                     | 1,143  |                 | (2,577)
|                                                     | Proceeds from maturities and principal reductions of |                                   |                                                    |                                                     |       
|                                                     |                                                      | securities available for sale     |                                                    |                                                     |        | 4,216           |         | 288  
|                                                     | Purchases of securities available for sale           |                                   |                                                    | (2,255)                                             |        | (2,655)        
|                                                     | Purchases of securities held to maturity             |                                   |                                                    | -                                                   |        | (522)          
|                                                     | Proceeds from maturities and principal reductions of |                                   |                                                    |                                                     |       
|                                                     |                                                      | securities held to maturity       |                                                    |                                                     |        | 28              |         | 531  
|                                                     | Proceeds from sales of real estate owned             |                                   |                                                    | -                                                   |        | 39             
|                                                     | Additions to premises and equipment                  |                                   |                                                    | (53)                                                |        | (46)           
|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         |       |  |     
|                                                     |                                                      |                                   |                                                    | Net cash provided by (used in) investing activities | 3,079  |                 | (4,942)
|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         |       |  |     
|Cash flows from financing activities:                |                                                      |                                   |                                                    |                                                     |        |                
|                                                     | Increase (decrease) in time deposits                 |                                   |                                                    | 877                                                 |        | (2,838)        
|                                                     | Increase in other deposits                           |                                   |                                                    |                                                     | 253    |                 | 2,836  
|                                                     | Repayments of borrowings                             |                                   |                                                    |                                                     | (555)  |                 | -      
|                                                     | Purchase of treasury stock                           |                                   |                                                    |                                                     | (424)  |                 | -      
|                                                     | Dividends                                            |                                   |                                                    |                                                     |        | (214)           |         | (172)
|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         |       |  |     
|                                                     |                                                      |                                   |                                                    | Net cash used in financing activities               |        | (63)            |         | (174)
|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         |       |  |     
|Net increase (decrease) in cash and cash equivalents |                                                      | 4,047                             |                                                    | (4,467)                                            
|Cash and cash equivalents at beginning of period     |                                                      |                                   | 20,800                                             |                                                     | 16,061
|                                                     |                                                      |                                   |                                                    |                                                     |        |                 |         |       |  |     
|Cash and cash equivalents at end of period           |                                                      |                                   | $      24,847                                      |                                                     | 11,594





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 March 31, 2001 and December 31, 2000 and for the three-month periods ended March 31, 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 with the current period's presentation.





1. Earnings Per Share



The following summarizes the computation of earnings per share for the three-month periods ended March 31, 2001 and 2000 (in thousands, except share data):



|                                            | 2001             | 2000 
|------------------------------------------- | ---------------- | -----
|Basic earnings per share:                   |                  |      
|Income available to common shareholders     | $          552   | 538  
|Weighted average basic shares outstanding   | 3,009            | 3,276
|                                            |                  |      
|Basic earnings per share                    | $           0.18 | 0.16 
|                                            |                  |      
|Diluted earnings per share:                 |                  |      
|Income available to common shareholders     | $          552   | 538  
|Weighted average basic shares outstanding   | 3,009            | 3,276
|Effect of dilutive securities:              |                  |      
|Stock options                               | 45               | -    
|Unearned compensation                       | 8                | -    
|Weighted average diluted shares outstanding | 3,062            | 3,276
|                                            |                  |      
|Diluted earnings per share                  | $           0.18 | 0.16 

1. Comprehensive Income (Loss)
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.





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 March 31, 2001 and December 31, 2000:



Total assets at March 31, 2001 were $245.4 million, virtually unchanged from  $244.8 million at December 31, 2000.  Federal funds sold and other short-term investments increased $4.6 million or 32.7% from $14.2 million at December
31, 2000 to $18.8 million at March 31, 2001.  Securities available for sale decreased $1.9 million or 4.0% from $47.4 million at December 31, 2000 to $45.5 million at March 31, 2001.  The fluctuations in federal funds sold and other short-term investments
and securities available for sale is due to funds from maturities and principal reductions of securities available for sale being held in federal funds sold awaiting redeployment into more profitable assets.



Total deposits increased $1.2 million or 0.7% from $183.2 million to $184.4 million at March 31, 2001.  The increase in deposits is due to an increase in savings, money market and time deposits partially offset by a
decrease in non-interest bearing deposits. Savings deposits increased $917,000 or 1.2% from $78.3 million at December 31, 2000 to $79.2 million at March 31, 2001.  Money market deposits increased $329,000 or 6.0% from $5.5 million at December 31, 2000 to
$5.8 million at March 31, 2001.  Time deposits increased $877,000 or 1.2% from $72.9 million at December 31, 2000 to $73.7 million at March 31, 2001.  Partially offsetting the increase in savings, money market and time deposits was a $906,000 or 3.8%
decrease in non-interest bearing deposits from $24.0 million at December 31, 2000 to $23.1 million at March 31, 2001.  Management attributes the increase in total deposits to the Company's rates on deposit accounts being slightly higher than average rates
offered by local competitors.



Comparison of Operating Results for the Three-Month Periods Ended March 31, 2001 and 2000



General



Net income for the three-months ended March 31, 2001 was $552,000 or $0.18 per share, representing an increase of $14,000 or 2.6% compared to $538,000 or $0.16 per share for the same period in 2000.  The increase in net income
resulted primarily from a $36,000 increase in net interest income and a $72,000 decrease in non-interest expense, partially offset by a $103,000 decrease in non-interest income.  The increase in net interest income was caused by a $437,000 increase in
total interest income, partially offset by a $401,000 increase in total interest expense.  Earnings per share increased $0.02 per share or 12.5% primarily due to a decrease in the number of shares outstanding as a result of the Company's stock repurchase
plan to purchase up to 10% of issued and outstanding shares.



Interest Income



Interest income increased from $3.9 million for the quarter ended March 31, 2000 to $4.3 million for the quarter ended March 31, 2001.  The increase in interest income is primarily due to an increase in the average balance of loans for
the quarter ended March 31, 2001 compared to the same quarter in 2000.  Average loans increased from $142.6 million in the first quarter of 2000 to $165.0 million in the first quarter of 2001.  This increase is 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 $482,000 increase in interest income on loans.  Interest income on securities decreased $191,000 from $832,000
for the quarter ended March 31, 2000 to $641,000 for the quarter ended March 31, 2001 reflecting a decrease in the average balance of securities from $59.8 million for the three-month period ended March 31, 2000 to $48.2 million for the three-month period
ended March 31, 2001.  This decrease was partially offset by a $146,000 increase in interest income on federal funds sold and other short-term investments from $89,000 for the quarter ended March 31, 2000 to $235,000 for the quarter ended March 31, 2001.



Interest Expense



Interest expense increased from $1.6 million for the quarter ended March 31, 2000 to $2.0 million for the quarter ended March 31, 2001.  The increase in interest expense was primarily a result of the Company having no outstanding
borrowings in the first quarter of 2000 compared to average borrowings of $19.3 million for the quarter ended March 31, 2001.  The increase in borrowings caused a $323,000 increase in interest expense.  These borrowings were used to fund the purchase of
loans discussed above.  The increase in interest expense was also caused by an increase in rates paid on time deposits.  The average rate on time deposits for the quarter ended March 31, 2001 was 5.61% compared to 4.95% for the quarter ended March 31,
2000.  This increase in rate caused a $107,000 increase in interest expense.



Provision for Loan Losses



The Company did not make any provision for loan losses in the three-month periods ended March 31, 2001 and 2000.  Due to net charge-offs, the allowance for loan losses as a percent of loans decreased from 1.01% at December 31,
2000 to 0.91% at March 31, 2001.  The allowance for loan losses as a percent of non-performing loans increased from 125.4% at December 31, 2000 to 158.6% at March 31, 2001.  This increase is due to a decline in non-performing loans from $1.3 million at
December 31, 2000 to $954,000 at March 31, 2001.  Excluding the $18.7 million remaining principal of recourse loans results in an allowance to loans ratio of 1.03% at March 31, 2001.



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



The decrease in non-interest income was caused by a $112,000 decline in the fair value of assets in which Directors' deferred compensation is invested.  A comparable decrease in non-interest expense is reflected since the Company's
liability for Directors' deferred compensation also decreased by the same decline in fair value.





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 March 31, 2001, the Bank had no outstanding borrowings on this line of credit, but did
have outstanding advances and an amortizing note totaling $19.1 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 March 31, 2001 the Company originated loans of approximately
$6.0 million and for the three-month period ended March 31, 2000, the Company originated loans of approximately $13.0 million.  Purchases of securities were $2.3 million for the three-month period ending March 31, 2001 and $3.2 million for the same period
in 2000.



At March 31, 2001, the Company had loan commitments to borrowers of approximately $3.9 million, and available letters and lines of credit of approximately $5.3 million.  Total deposits were $184.4 million at March 31, 2001, an increase
of $1.2 million from $183.2 million at December 31, 2000.



Time deposit accounts scheduled to mature within one year were $51.2 million at March 31, 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 March 31, 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 March 31, 2001 was $37.5 million and $33.8 million, respectively,
or 15.4% and 13.8% 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 $12.2 million, or 5.0% of average assets. To be classified as a well-capitalized
bank by the FDIC, the Bank must also have a total risk-based capital ratio of 10.0%. At March 31, 2001, the Bank had a total risk-based capital ratio of 21.7%.



The Company paid cash dividends of $0.07 and $.0525 per share during the three-month periods ended March 31, 2001 and 2000, respectively.  During the three-month period ended March 31, 2001, the Company repurchased 34,500 shares of
common stock at a cost of $424,000.



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.