UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, DC 20549FORM 10-QQuarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934For the quarterly period ended September 30, 2007Commission file number 000-27481Rome Bancorp, Inc.(Exact name of registrant 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(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months and (2) has been subject
to such filing requirements for the past 90 days.      Yes x      No o

Indicate by check mark whether the registrant is a large accelerated file, an accelerated filer, or a non-accelerated filer.

Large accelerated filer o                    Accelerated filer x                     Non-accelerated filer o

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act.)      Yes o      No x

Indicate the number of shares outstanding of each class of issuer's classes of common stock as of the last practicable date:

|                             | Outstanding at  
|---------------------------- | ----------------
|Class                        | November 2, 2007
|Common Stock, par value $.01 | 7,937,230       



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ROME BANCORP, INC.FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2007TABLE OF CONTENTS

|         |  |                                                             |  | PAGE
|-------- |  | ----------------------------------------------------------- |  | ----
|        
|PART I   |  | FINANCIAL INFORMATION                                       |  |     
|        
|ITEM 1.  |  | FINANCIAL STATEMENTS (unaudited):                           |  |     
|         |  | CONDENSED CONSOLIDATED BALANCE SHEET                        |  | 3   
|         |  | CONDENSED CONSOLIDATED STATEMENTS OF INCOME                 |  | 4   
|         |  | CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY    |  | 5   
|         |  | AND COMPREHENSIVE INCOME                                    |  |     
|         |  | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS             |  | 6   
|         |  | NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL         |  | 8   
|         |  | STATEMENTS                                                  |  |     
|        
|ITEM 2.  |  | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL           |  |     
|         |  | CONDITION AND RESULTS OF OPERATIONS                         |  | 14  
|ITEM 3.  |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  |  | 24  
|ITEM 4.  |  | CONTROLS AND PROCEDURES                                     |  | 24  
|        
|PART II  |  | OTHER INFORMATION                                           |  |     
|        
|ITEM 1.  |  | LEGAL PROCEEDINGS                                           |  | 24  
|ITEM 1A. |  | RISK FACTORS                                                |  | 24  
|ITEM 2.  |  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |  | 25  
|ITEM 3.  |  | DEFAULTS UPON SENIOR SECURITIES                             |  | 25  
|ITEM 4.  |  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS         |  | 25  
|ITEM 5.  |  | OTHER INFORMATION                                           |  | 25  
|ITEM 6.  |  | EXHIBITS                                                    |  | 26  
|        
|         |  | SIGNATURES                                                  |  | 27  

2

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PART I FINANCIAL INFORMATIONItem 1. Financial Statements

ROME BANCORP, INC. AND SUBSIDIARYCondensed Consolidated Balance SheetSeptember 30, 2007 and December 31, 2006(in thousands, except share data)

|                                                                            |  | (Unaudited)   |         |              |  |  
|--------------------------------------------------------------------------- |  | ------------- | ------- | ------------ |  | -
|                                                                            |  | September 30, |         | December 31,
|                                                                            |  | 2007          |         | 2006        
|Assets                                                                      |  |               |         |              |  |  
|                                                                           
|Cash and due from banks                                                     |  | $             | 6,766   |              |  | $
|Federal funds sold and other short-term investments                         |  |               | 1,030   |              |  |  
|Total cash and cash equivalents                                             |  |               | 7,796   |              |  |  
|Securities available for sale, at fair value                                |  |               | 3,385   |              |  |  
|Securities held to maturity (fair value of $1,177 and $1,175                |  |               |         |              |  |  
|at September 30, 2007 and December 31, 2006, respectively)                  |  |               | 1,160   |              |  |  
|Federal Home Loan Bank Stock                                                |  |               | 2,104   |              |  |  
|Loans                                                                       |  |               | 278,575 |              |  |  
|Less: Allowance for loan loss                                               |  |               | (1,928  | )            |  |  
|Net loans                                                                   |  |               | 276,647 |              |  |  
|Premises and equipment, net                                                 |  |               | 6,599   |              |  |  
|Accrued interest receivable                                                 |  |               | 1,190   |              |  |  
|Bank-owned life insurance                                                   |  |               | 8,499   |              |  |  
|Other assets                                                                |  |               | 6,471   |              |  |  
|Total assets                                                                |  | $             | 313,851 |              |  | $
|                                                                           
|Liabilities & Equity                                                        |  |               |         |              |  |  
|                                                                           
|Liabilities                                                                 |  |               |         |              |  |  
|Deposits:                                                                   |  |               |         |              |  |  
|Non-interest bearing                                                        |  | $             | 29,655  |              |  | $
|Savings                                                                     |  |               | 80,905  |              |  |  
|Money market                                                                |  |               | 7,708   |              |  |  
|Time                                                                        |  |               | 72,459  |              |  |  
|Other interest bearing                                                      |  |               | 12,036  |              |  |  
|Total deposits                                                              |  |               | 202,763 |              |  |  
|Borrowings                                                                  |  |               | 35,196  |              |  |  
|Other liabilities                                                           |  |               | 5,414   |              |  |  
|Total liabilities                                                           |  |               | 243,373 |              |  |  
|                                                                           
|Shareholders' equity                                                        |  |               |         |              |  |  
|Common Stock, $.01 par value; authorized: 30,000,000 shares;                |  |               |         |              |  |  
|issued and outstanding: 9,889,298 and 7,957,526 shares at September 30,     |  |               |         |              |  |  
|2007 and 9,726,572 and 8,461,572 shares at December 31, 2006                |  |               | 99      |              |  |  
|Additional paid-in capital                                                  |  |               | 61,674  |              |  |  
|Retained earnings                                                           |  |               | 36,115  |              |  |  
|Accumulated other comprehensive income (loss)                               |  |               | (621    | )            |  |  
|Treasury stock; 1,931,772 shares at September 30, 2007 and 1,265,000 shares |  |               |         |              |  |  
|at December 31, 2006                                                        |  |               | (24,473 | )            |  |  
|Unallocated shares of employee stock ownership plan (ESOP); 381,698         |  |               |         |              |  |  
|shares at September 30, 2007 and 416,171 shares at December 31, 2006        |  |               | (2,316  | )            |  |  
|Total shareholders' equity                                                  |  |               | 70,478  |              |  |  
|Total liabilities and shareholders' equity                                  |  | $             | 313,851 |              |  | $

See accompanying notes to unaudited condensed consolidated financial statements.

3

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ROME BANCORP, INC. AND SUBSIDIARYCondensed Consolidated Statements of IncomeFor the Three and Nine Months Ended September 30, 2007 and 2006(in thousands, except share data)(unaudited)

|                                                    |  | For the three months ended |       | For the nine months ended
|--------------------------------------------------- |  | -------------------------- | ----- | -------------------------
|                                                    |  | September 30,              |       | September 30,            
|                                                    |  | 2007                       |       | 2006                     
|                                                    |  |                            |       |                          
|Interest income:                                    |  |                            |       |                          
|Loans                                               |  | $                          | 4,427 |                          
|Securities                                          |  |                            | 72    |                          
|Other short-term investments                        |  |                            | 13    |                          
|Total interest income                               |  |                            | 4,512 |                          
|                                                   
|Interest expense:                                   |  |                            |       |                          
|Deposits                                            |  |                            | 920   |                          
|Borrowings                                          |  |                            | 339   |                          
|Total interest expense                              |  |                            | 1,259 |                          
|                                                   
|Net interest income                                 |  |                            | 3,253 |                          
|                                                   
|Provision for loan losses                           |  |                            | -     |                          
|Net interest income after provision for loan losses |  |                            | 3,253 |                          
|                                                   
|Non-interest income:                                |  |                            |       |                          
|Net gain on securities transactions                 |  |                            | -     |                          
|Other                                               |  |                            | 547   |                          
|Total non-interest income                           |  |                            | 547   |                          
|                                                   
|                                                   
|Non-interest expense:                               |  |                            |       |                          
|Salaries and employee benefits                      |  |                            | 1,428 |                          
|Building, occupancy and equipment                   |  |                            | 468   |                          
|Other                                               |  |                            | 663   |                          
|Total non-interest expense                          |  |                            | 2,559 |                          
|                                                   
|                                                   
|Income before income tax expense                    |  |                            | 1,241 |                          
|Income tax expense                                  |  |                            | 438   |                          
|Net income                                          |  | $                          | 803   |                          
|                                                   
|Basic earnings per share                            |  | $                          | 0.11  |                          
|Diluted earnings per share                          |  | $                          | 0.11  |                          

See accompanying notes to unaudited condensed consolidated financial statements.

4

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ROME BANCORP, INC. AND SUBSIDIARYCondensed Consolidated Statement of Shareholders'Equity and Comprehensive IncomeFor the Nine Months Ended September 30, 2007 and 2006(in thousands, except share and per share data)(unaudited)

|                                        |  | Common
    stock |    | Additional
    Paid-in
    Capital |   | Retained
    earnings |   | Treasury
    Stock |   | Accumulated
    other
    comprehensive
    Income (loss) |   | Unallocated
    ESOP
    shares |   | Total  
|--------------------------------------- |  | ---------------- | -- | ---------------------------------- | - | --------------------- | - | ------------------ | - | --------------------------------------------------------- | - | ------------------------------- | - | -------
|Balances at January 1, 2006 (Restated)  |  | $                | 97 |                                    | $ | 60,013                |   |                    | $ | 35,983                                                    |   |                                 | $ | -      
|Comprehensive income:                   |  |                  |    |                                    |   |                       |   |                    |   |                                                           |   |                                 |   |        
|Net income                              |  |                  | -  |                                    |   | -                     |   |                    |   | 1,650                                                     |   |                                 |   | -      
|Other comprehensive loss                |  |                  | -  |                                    |   | -                     |   |                    |   | -                                                         |   |                                 |   | -      
|Total comprehensive income              |  |                  |    |                                    |   |                       |   |                    |   |                                                           |   |                                 |   |        
|Purchase of 1,104,800 treasury shares   |  |                  |    |                                    |   | -                     |   |                    |   | -                                                         |   |                                 |   | (14,241
|Transfer of treasury shares to RRP plan |  |                  |    |                                    |   | (1,511                | ) |                    |   | -                                                         |   |                                 |   | 1,511  
|Amortization of unearned compensation   |  |                  |    |                                    |   | 1,563                 |   |                    |   | -                                                         |   |                                 |   | -      
|Dividends paid ($0.225 per share)       |  |                  | -  |                                    |   | -                     |   |                    |   | (2,011                                                    | ) |                                 |   | -      
|Exercise of stock options               |  |                  | -  |                                    |   | 186                   |   |                    |   | -                                                         |   |                                 |   | -      
|ESOP shares released for                |  |                  |    |                                    |   |                       |   |                    |   |                                                           |   |                                 |   |        
|allocation (34,473 shares)              |  |                  |    |                                    |   | 257                   |   |                    |   | -                                                         |   |                                 |   | -      
|Balances at September 30, 2006          |  | $                | 97 |                                    | $ | 60,508                |   |                    | $ | 35,622                                                    |   |                                 | $ | (12,730
|                                       
|Balances at January 1, 2007             |  | $                | 97 |                                    | $ | 60,712                |   |                    | $ | 35,643                                                    |   |                                 | $ | (16,307
|Comprehensive income:                   |  |                  |    |                                    |   |                       |   |                    |   |                                                           |   |                                 |   |        
|Net Income                              |  |                  | -  |                                    |   | -                     |   |                    |   | 2,387                                                     |   |                                 |   | -      
|Other comprehensive income              |  |                  | -  |                                    |   | -                     |   |                    |   | -                                                         |   |                                 |   | -      
|Total comprehensive income              |  |                  |    |                                    |   |                       |   |                    |   |                                                           |   |                                 |   |        
|Purchase of 666,772 treasury shares     |  |                  | -  |                                    |   | -                     |   |                    |   | -                                                         |   |                                 |   | (8,166 
|Amortization of unearned compensation   |  |                  | -  |                                    |   | 194                   |   |                    |   | -                                                         |   |                                 |   | -      
|Dividends paid ($0.24 per share)        |  |                  | -  |                                    |   | -                     |   |                    |   | (1,915                                                    | ) |                                 |   | -      
|Exercise of stock options               |  |                  | 2  |                                    |   | 510                   |   |                    |   | -                                                         |   |                                 |   | -      
|ESOP shares released for                |  |                  |    |                                    |   |                       |   |                    |   |                                                           |   |                                 |   |        
|allocation (34,473 shares)              |  |                  | -  |                                    |   | 258                   |   |                    |   | -                                                         |   |                                 |   | -      
|Balances at September 30, 2007          |  | $                | 99 |                                    | $ | 61,674                |   |                    | $ | 36,115                                                    |   |                                 | $ | (24,473

See accompanying notes to unaudited condensed consolidated financial statements.

5

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ROME BANCORP, INC. AND SUBSIDIARYCondensed Consolidated Statements of Cash FlowsFor the Nine Months Ended September 30, 2007 and 2006(unaudited) (in thousands)

|                                                     |  |   | 2007    |   |  |   | 2006       |  
|---------------------------------------------------- |  | - | ------- | - |  | - | ---------- | -
|Cash flows from operating activities:                |  |   |         |   |  |   | (Restated)
|Net income                                           |  | $ | 2,387   |   |  | $ | 1,650      |  
|Adjustments to reconcile net income to net cash      |  |   |         |   |  |   |            |  
|Provided by operating activities:                    |  |   |         |   |  |   |            |  
|Depreciation and amortization                        |  |   | 338     |   |  |   | 408        |  
|Increase in accrued interest receivable              |  |   | (96     | ) |  |   | (95        | )
|Net gain on securities sold                          |  |   | (11     | ) |  |   | (11        | )
|Provision for loan losses                            |  |   | -       |   |  |   | 140        |  
|Loss on disposal of fixed asset                      |  |   | -       |   |  |   | 3          |  
|Net loss on sales of real estate owned               |  |   | -       |   |  |   | 13         |  
|Net accretion on securities                          |  |   | (4      | ) |  |   | (7         | )
|Proceeds from sales of loans                         |  |   | 1,509   |   |  |   | 783        |  
|Net gain on loans sold                               |  |   | (18     | ) |  |   | (11        | )
|Originations of loans held for sale                  |  |   | (1,491  | ) |  |   | (772       | )
|Decrease in other liabilities                        |  |   | (137    | ) |  |   | (38        | )
|Increase in cash surrender value of life insurance   |  |   | (284    | ) |  |   | (122       | )
|Increase in other assets                             |  |   | (351    | ) |  |   | (906       | )
|Allocation of ESOP shares                            |  |   | 423     |   |  |   | 422        |  
|Amortization of unearned compensation                |  |   | 194     |   |  |   | 1,563      |  
|Net cash provided by operating activities            |  |   | 2,459   |   |  |   | 3,020      |  
|                                                    
|Cash flows from investing activities:                |  |   |         |   |  |   |            |  
|Net increase in loans                                |  |   | (14,075 | ) |  |   | (9,539     | )
|Purchase of Bank owned life insurance                |  |   | -       |   |  |   | (8,000     | )
|Proceeds from sales of securities available for sale |  |   | 357     |   |  |   | 365        |  
|Proceeds from maturities and principal reductions of |  |   |         |   |  |   |            |  
|securities available for sale                        |  |   | 584     |   |  |   | 4,189      |  
|Purchases of Federal Home Loan Bank stock            |  |   | (760    | ) |  |   | (179       | )
|Proceeds from maturities and principal reductions of |  |   |         |   |  |   |            |  
|securities held to maturity                          |  |   | 20      |   |  |   | 250        |  
|Proceeds from sales of fixed assets                  |  |   | -       |   |  |   | 8          |  
|Proceeds from sales of real estate owned             |  |   | -       |   |  |   | 41         |  
|Additions to premises and equipment                  |  |   | (860    | ) |  |   | (851       | )
|Net cash used in investing activities                |  |   | (14,734 | ) |  |   | (13,716    | )
|                                                    
|Cash flows from financing activities:                |  |   |         |   |  |   |            |  
|Increase (decrease) in time deposits                 |  |   | 6,058   |   |  |   | (335       | )
|Increase (decrease) in other deposits                |  |   | 700     |   |  |   | (1,696     | )
|Repayments of borrowings                             |  |   | (1,676  | ) |  |   | (1,448     | )
|Additional borrowings                                |  |   | 16,700  |   |  |   | 3,600      |  
|Purchase of treasury stock                           |  |   | (8,166  | ) |  |   | (14,241    | )
|Dividends paid                                       |  |   | (1,915  | ) |  |   | (2,011     | )
|Exercise of stock options                            |  |   | 512     |   |  |   | 186        |  
|Net cash provided by (used in) financing activities  |  |   | 12,213  |   |  |   | (15,945    | )
|                                                    
|Net decrease in cash and cash equivalents            |  |   | (62     | ) |  |   | (26,641    | )
|Cash and cash equivalents at beginning of period     |  |   | 7,858   |   |  |   | 34,235     |  
|Cash and cash equivalents at end of period           |  | $ | 7,796   |   |  | $ | 7,594      |  

Condensed Consolidated Statements of Cash Flows continued on next page.

6

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ROME BANCORP, INC. AND SUBSIDIARYCondensed Consolidated Statements of Cash FlowsFor the Nine Months Ended September 30, 2007 and 2006(unaudited) (in thousands)

|                                                  |  | 2007 |       | 2006
|------------------------------------------------- |  | ---- | ----- | ----
|Supplemental disclosure of cash flow information: |  |      |       |     
|Non-cash investing activities:                    |  |      |       |     
|Transfer of loans to other real estate            |  |      | -     |     
|Cash paid during the period for:                  |  |      |       |     
|Interest                                          |  | $    | 3,455 |     
|Income taxes                                      |  |      | 907   |     

See accompanying notes to unaudited condensed consolidated financial statements.

7

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ROME BANCORP, INC.Notes to Unaudited Condensed Consolidated Financial Statements

(1) The accompanying unaudited condensed consolidated financial statements include the accounts of Rome Bancorp, Inc. ("Rome Bancorp" or the "Company") and The Rome Savings Bank (the "Bank"), a wholly-owned subsidiary of the
Company, as of September 30, 2007 and December 31, 2006 and for the three and nine month periods ended September 30, 2007 and 2006. All inter-company 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-Q. Accordingly, they do
not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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.

The Company believes that the disclosures are adequate to make the information presented not misleading; however, the results of operations and other data presented 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, 2006 was derived from the Company's 2006 Annual Report on Form 10-K.
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 2006 consolidated financial statements, including the notes thereto included in the Company's Annual Report on Form 10-K.

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

8

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(2) Earnings Per Share

The following summarizes the computation of earnings per share for the three and nine month periods ended September 30, 2007 and 2006.

|(in thousands, except share and
              per share data)
|-------------------------------------------------------------
|                                                             
|                                                             
|                                                             
|Basic earnings per share:                                    
|Income available to common shareholders                      
|Weighted average basic shares outstanding                    
|                                                             
|Basic earnings per share                                     
|                                                             
|Diluted earnings per share:                                  
|Income available to common shareholders                      
|Weighted average basic shares outstanding                    
|Effect of dilutive securities:                               
|Stock options                                                
|Restricted stock awards                                      
|Weighted average diluted shares outstanding                  
|                                                             
|Diluted earnings per share                                   

(3) Other Comprehensive Income (Loss)

|                                                        |  | Three months ended
    September 30, |     |      | Nine months ended
    September 30,
|------------------------------------------------------- |  | ------------------------------------ | --- | ---- | -----------------------------------
|                                                        |  | 2007                                 |     | 2006 |                                    
|Pension and postretirement adjustments                  |  | $                                    | 8   |      | $                                  
|Net change in unrealized gain (loss) on                 |  |                                      |     |      |                                    
|available-for-sale securities arising during the period |  |                                      | 15  |      |                                    
|Reclassification adjustment for net realized gain       |  |                                      |     |      |                                    
|included in net income                                  |  |                                      | -   |      |                                    
|Other comprehensive income (loss), before tax           |  |                                      | 23  |      |                                    
|Deferred tax expense (benefit)                          |  |                                      | 9   |      |                                    
|                                                       
|Other comprehensive income (loss)                       |  |                                      | 14  |      |                                    
|Net income                                              |  |                                      | 803 |      |                                    
|Total comprehensive income                              |  | $                                    | 817 |      | $                                  

9

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(4) Securities

Securities are summarized as follows (in thousands):

|                                |  | September 30, 2007 |       | December 31, 2006
|------------------------------- |  | ------------------ | ----- | -----------------
|                               
|                                |  | Amortized          |       | Fair             
|                                |  | Cost               |       | value            
|                               
|Available-for-sale:             |  |                    |       |                  
|U.S. Government agencies        |  | $                  | 48    |                  
|State and municipal obligations |  |                    | 1,855 |                  
|Mortgage-backed securities      |  |                    |       |                  
|FHLMC                           |  |                    | 281   |                  
|                               
|Total debt securities           |  |                    | 2,184 |                  
|                               
|Equity and other securities     |  |                    | 1,137 |                  
|                               
|Total available for sale        |  | $                  | 3,321 |                  
|                               
|Held-to-maturity:               |  |                    |       |                  
|U.S. Government securities      |  | $                  | 1,001 |                  
|Mortgage-backed securities      |  |                    |       |                  
|GNMA                            |  |                    | 19    |                  
|FHLMC                           |  |                    | 1     |                  
|Other bonds                     |  |                    | 139   |                  
|                               
|Total held to maturity          |  | $                  | 1,160 |                  
|                               
|FHLB stock                      |  | $                  | 2,104 |                  

Securities pledged at both September 30, 2007 and December 31, 2006 had a carrying amount of $1.0 million. These securities collateralize Treasury department programs. As of these
dates,there were noholdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount
greater than 10% of shareholders' equity.

10

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(5) Loans

Loans are summarized as follows (in thousands):

|                         |  | September 30, |         | December 31,
|------------------------ |  | ------------- | ------- | ------------
|                         |  | 2007          |         | 2006        
|Mortgage loans:          |  |               |         |             
|Residential (1-4 family) |  | $             | 147,429 |             
|Commercial               |  |               | 49,249  |             
|Construction and land    |  |               | 5,190   |             
|                         |  |               |         |             
|Total Mortgage loans     |  |               | 201,868 |             
|Other loans:             |  |               |         |             
|Commercial               |  |               | 27,444  |             
|Automobile loans         |  |               | 16,581  |             
|Property improvement     |  |               |         |             
|and equipment            |  |               | 15,921  |             
|Other consumer           |  |               | 16,761  |             
|                         |  |               |         |             
|Total Other loans        |  |               | 76,707  |             
|                         |  |               |         |             
|Total Loans              |  | $             | 278,575 |             

Changes in the allowance for loan losses are summarized as follows (in thousands):

|                                |  | Three months ended |       | Nine months ended
|------------------------------- |  | ------------------ | ----- | -----------------
|                                |  | September 30,      |       | September 30,    
|                                |  | 2007               |       | 2006             
|                                |  |                    |       |                  
|Balance at beginning of period  |  | $                  | 1,958 |                  
|Provision charged to operations |  |                    | -     |                  
|Loans charged off               |  |                    | (59   | )                
|Recoveries                      |  |                    | 29    |                  
|                                |  |                    |       |                  
|Balance at end of period        |  | $                  | 1,928 |                  

The Company's recorded investment in loans that are considered impaired totaled $233,000 and $318,000 at September 30, 2007 and December 31, 2006, respectively.  These impaired loans carried
allowances of $64,000 at September 30, 2007 and $177,000 as of year-end 2006. The average recorded investment in impaired loans was $249,000 and $309,000 in the first nine months of 2007 and 2006, respectively. The Company recognized
no interest on impaired loans during the three and nine month periods ended September 30, 2007 and 2006.

11

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The principal balances of loans not accruing interest amounted to $1.1 million at both September 30, 2007 and December 31, 2006.  Loans 90 days past due and accruing interest amounted to
$81,000 and $8,000 at September 30, 2007 and December 31, 2006, respectively. The differences between the amount of interest income that would have been recorded if non-accrual loans had been paid in accordance with their original terms and
the amount of interest income that was recorded during the nine months ended September 30, 2007 and 2006 was $67,900 and $52,300, respectively. There are no commitments to extend further credit on non-accruing loans.

A substantial portion of the Company's loans are mortgage and consumer loans in Oneida County; New York. Accordingly, the collectibility of a substantial portion of the Company's loan portfolio is
susceptible to changes in market conditions in this area. A majority of the Company's loan portfolio is secured by real estate. Other than general economic risks, management is not aware of any material concentrations of credit risk to any industry
or individualborrower.

(6) Stock-Based Compensation

Effective January 1, 2006, the Company adopted the fair value method of accounting for share-based compensation arrangements in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based
Payment (FAS 123(R)), using the modified prospective method of transition. Under the provisions of FAS 123(R), the estimated fair value of share-based awards granted is recognized as compensation expense over the service period. Using the
modified prospective method, compensation expense is recognized beginning with the effective date of adoption of FAS 123(R) for all share-based payments (i) granted after the effective date of adoption and (ii) granted prior to the effective date of
adoption and that remain unvested on the date of adoption. The Company had no unvested stock options outstanding at the date of adoption

On May 24, 2006, the Company's Board of Directors issued 354,000 stock options to directors and key employees with an exercise price equal to the market price of the Company's stock on that day. These options have a ten year life
and vest ratably over a five year period or in certain cases upon retirement. The fair value of the options granted is estimated at grant date using a Black-Scholes option pricing model based upon the following assumptions: expected dividend yield
2.52%, expected stock price volatility 8.25%, risk free interest rate 4.60% and an expected option life of 6.5 years. At May 24, 2006, certain awardees met the retirement eligibility criteria and accordingly, stock-based compensation expense of
$350,000 related to their options was expensed immediately. As of September 30, 2007, unrecognized compensation cost related to these options was $183,000. This expense is being amortized on a straight line basis over the remainder of the
sixty month vesting period of the options.

Following is a summary of the Company's 2007 year-to-date stock option activity:

|                                         |  | Nine Months ended September 30, 2007
|---------------------------------------- |  | ------------------------------------
|                                         |  | ( Dollars in thousands)             
|                                         |  |                                     
|                                         |  |                                     
|                                         |  | Shares                              
|Options outstanding, beginning of period |  | 524,892                             
|Exercised                                |  | (162,726                            
|Granted                                  |  | -                                   
|Options outstanding at end of period     |  | 362,166                             
|Options exercisable at end of period     |  | 78,966                              

The aggregate intrinsic value of all options outstanding and exercisable at September 30, 2007 was $82,000. The intrinsic value of options exercised during the quarters ended September 30, 2007 and

12

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|    | September 30, 2006 was $73,000 and $0, respectively. The intrinsic value of options exercised during the nine months ended September 30, 2007 and 2006 was $1.7 million and $359,000, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | On May 24, 2006, the Company's Board of Directors awarded 168,300 shares of restricted stock to directors and certain key employees (RRP Plan). These shares vest to the recipients ratably over a five year period, or in certain
cases upon retirement and the related unrecognized compensation cost related to this grant will be expensed over the same period. At May 24, 2006, certain awardees met the retirement eligibility criteria and accordingly, stock-based compensation
expense of $1.1 million related to their 2006 RRP awards was expensed immediately.At September 30, 2007, the unrecognized compensation cost attributable to restricted stock awards was
$767,000. One fifth of the 2006 restricted stock grants, or 33,660 shares, vested in the second quarter of 2007. The aggregate intrinsic value of restricted stock that is expected to vest in the future was $1.6 million at September 30, 2007.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | Compensation cost for the Company's stock option plans in the 2007 and 2006 third quarters was $12,000 and $21,000, respectively. For the nine months ended September 30, 2007 and 2006 compensation cost related to the stock
option plans was $37,000 and $378,000, respectively. Compensation cost for the Company's restricted stock plans in both the 2007 and 2006 third quarters was $52,000. For the nine months ended September 30, 2007 and 2006 compensation cost
related to the restricted stock plans was $157,000 and $1.2 million, respectively.                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(7) | Pension and Postretirement Medical Benefit Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | The components of net periodic pension and postretirement benefit cost consisted of the following (in thousands):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|                                         |  | Three months ended September 30,
|---------------------------------------- |  | --------------------------------
|                                         |  | Pension benefits                
|Components of net periodic pension cost: |  | 2007                            
|Service cost                             |  | $                               
|Interest cost                            |  |                                 
|Expected return on plan assets           |  |                                 
|Amortization                             |  |                                 
|                                         |  |                                 
|Net periodic pension cost                |  | $                               

|                                         |  | Nine months ended September 30,
|---------------------------------------- |  | -------------------------------
|                                         |  | Pension benefits               
|Components of net periodic pension cost: |  | 2007                           
|Service cost                             |  | $                              
|Interest cost                            |  |                                
|Expected return on plan assets           |  |                                
|Amortization                             |  |                                
|                                         |  |                                
|Net periodic pension cost                |  | $                              

| | In December of 2002, the Company's Board of Directors amended the defined benefit pension plan to cease the accrual of further benefits. For the fiscal year ended December 31, 2007, the Company expects to make no contributions to
the defined benefit pension plan.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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|(8) | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | In February 2007, the FASB issued Statement of Financial Accounting Standard No. 159 (SFAS 159),The Fair Value Option for Financial Assets and Financial Liabilities, which gives entities the option to measure eligible financial assets, and financial liabilities at fair value on an instrument
by instrument basis, that are otherwise not permitted to be accounted for at fair value under other accounting standards. The election to use the fair value option is available when an entity recognizes a financial asset or financial liability.
Subsequent changes in fair value must be recorded in earnings. This statement is effective for the Company as of January 1, 2008. The Company is in the process of analyzing the potential impact of SFAS 159.                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | In July 2006, the FASB issued Financial Accounting Standards Interpretation No. 48 ("FIN 48"),Accounting for Uncertainty in Income Taxes. FIN 48 clarifies the accounting
for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB No. 109,Accounting for Income Taxes.FIN 48 prescribes a recognition threshold and
measurement attributable for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position
would be sustained in a tax examination, with a tax examination being  presumed  to  occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting
the "more likely than not" test, no tax benefit is recorded.FIN 48 is effective for taxes years beginning after December 15, 2006. The adoption of this standard had no effect on the Company's
financial statements.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | The Company and its subsidiaries are subject to U.S. federal income tax as well as various other state income taxes. The Company is no longer subject to examination by taxing authorities for years before 2002.  The Company does
not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | The Company recognizes interest related to income tax matters as interest expense and penalties related to income tax matters as other expense. The Company did not have any amounts accrued for interest and penalties at either
January 1, 2007 or September 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | 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. ("Rome Bancorp" or the "Company") with the Securities and Exchange Commission, in Rome Bancorp 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 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 actual results, and could cause Rome Bancorp actual financial performance to
differ materially from that expressed in any forward-looking statement: (1) changes in the real estate market or local economy, (2) changes in interest rates, (3) changes in laws and regulations to which we are subject, and (4) competition in our
primary market area. Rome Bancorp 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.

14

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General

The Company is a Delaware corporation regulated by the Office of Thrift Supervision ("OTS") as a savings and loan holding company, whose sole business is conducted by its wholly-owned subsidiary, Rome Savings Bank (the "Bank.")
The Bank's principal business is accepting deposits from the general public and using those deposits to make residential and commercial real estate loans, as well as commercial and consumer loans to individuals and small businesses primarily in
Oneida County, New York and also elsewhere in New York State. The Bank also invests in long- and short-term marketable securities and other liquid investments. Since its conversion to a federal charter on April 27, 2004, the Bank has been regulated
by the OTS as a federal savings bank.

Overview

The Bank's results of operations depend primarily on its net interest income, which is the difference between the interest income it earns on its loans and investments and the interest it pays on its deposits and other
interest-bearing liabilities. Net interest income is affected by the relative amounts of interest-bearing assets and interest-bearing liabilities and the interest rates earned or paid on these balances. The Bank's operations are also affected by
non-interest income, such as service fees and gains and losses on sales of securities, the provision for loan losses and non-interest expense such as salaries and employee benefits, occupancy costs, and other general and administrative expenses.
Financial institutions in general, including the Bank, are significantly affected by economic conditions, competition and the monetary and fiscal policies of the federal government. Lending activities are influenced by the demand for and supply of
housing, competition among lenders, interest rate conditions and funds availability. The Bank's operations and lending are principally concentrated in the Central New York area, therefore its operations and earnings are influenced by the economies
of the area in which it operates. Deposit balances and cost of funds are influenced by prevailing market rates on competing investments, customer preferences and levels of personal income and savings in the Bank's primary market area.

Net income for the third quarter of 2007 was $803,000, a decrease of $117,000 from the prior year's third quarter net income of $920,000. The significant factors and trends impacting the third quarter of 2007, which
are discussed in greater depth below, were as follows:

- Net interest income decreased by $155,000, or 4.5%, from the same quarter last year as a result of an increase in interest expense.
- The Company recorded no provision for loan losses in the third quarter of 2007 compared to a provision of $25,000 in the same period last year.
- Non-interest income increased by $44,000, or 8.7%, over the third quarter 2006 levels primarily due to increases in fee income.
- Non-interest expense increased to $2.6 million in the third quarter of 2007 from $2.4 million in the same quarter of 2006.
- Income tax expense decreased to $438,000 in the third quarter of 2007 from $538,000 in the same period last year in relation to the decrease in pre-tax income.

Critical Accounting Policies

The preparation of consolidated financial statements requires management to make estimates and assumptions. Changes in these estimates and assumptions affect the reported amounts of certain assets, liabilities, revenue and
expenses. Different amounts could be reported under different conditions, or if different assumptions were used in the application of these accounting policies.

It is management's opinion that accounting estimates covering certain aspects of the business have more significance than others due to the relative importance of those areas to overall performance, or the level of subjectivity
required in making these estimates. Management of the Company considers the accounting policy

15

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relating to the allowance for loan losses to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required for probable credit losses and the material effect that such judgments can have
on the results of operations. Management's quarterly evaluation of the adequacy of the allowance considers the Company's historical loan loss experience, review of specific loans, current economic conditions and such other factors considered
appropriate to estimate losses. Management uses presently available information to estimate probable losses on loans; however, future additions to the allowance may be necessary based on changes in estimates, assumptions or economic conditions.
Significant factors that could give rise to changes in these estimates include, but are not limited to, changes in economic conditions in the local area, concentrations of risk and declines of local property values.

The Company's critical policies and their application are reviewed periodically by the Audit Committee and the Board of Directors. All accounting policies are important, and as such, we encourage the reader to review each of the
policies included in Note 2 to the consolidated financial statements reported on the Company's 2006 Annual Report on Form 10-K to obtain a better understanding of how our financial performance is reported.

Analysis of Net Interest Income

Average Balances, Interest and Average Yields- The following table sets forth certain information relating to the Company's average balance sheets and reflects the average yield on
interest-earnings assets and average cost of interest-bearing liabilities, interest earned and interest paid for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of interest-earning assets
or interest-bearing liabilities, respectively, for the periods presented. Average balances are derived from daily balances over the periods indicated. The average balances for loans are net of allowance for loan losses, but include non-accrual
loans.  Interest income on securities includes a tax equivalent adjustment for bank qualified municipal securities.

|                                           |  | Average Balances, Interest and Average Yields
|------------------------------------------ |  | ---------------------------------------------
|                                           |  | For the three months ended                   
|                                           |  | September 30, 2007                           
|                                           |  |                                              
|                                           |  | Average                                      
|                                           |  | Balance                                      
|Assets:                                    |  | (Dollars in thousands)                       
|Interest-earning assets:                   |  |                                              
|Loans                                      |  | $                                            
|Securities (1)                             |  |                                              
|Federal funds sold & other                 |  |                                              
|interest bearing deposits                  |  |                                              
|Total interest-earnings assets             |  |                                              
|Noninterest-earning assets                 |  |                                              
|Total assets                               |  | $                                            
|Liabilities and Shareholders' Equity:      |  |                                              
|Interest-bearing liabilities:              |  |                                              
|Savings accounts                           |  | $                                            
|Time deposits                              |  |                                              
|Money market accounts                      |  |                                              
|Other interest bearing deposits            |  |                                              
|Total interest-bearing deposits            |  |                                              
|Borrowings                                 |  |                                              
|Total interest-bearing liabilities         |  |                                              
|Noninterest-bearing deposits               |  |                                              
|Other liabilities                          |  |                                              
|Total liabilities                          |  |                                              
|Shareholders' equity                       |  |                                              
|Total liabilities and shareholders' equity |  | $                                            
|Net interest income                        |  |                                              
|Tax equivalent adjustment on securities    |  |                                              
|Net interest income per consolidated       |  |                                              
|financial statements                       |  |                                              

16

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|Net interest rate spread                                                                  |  | 3.96 | % |  | 4.43 | %
|----------------------------------------------------------------------------------------- |  | ---- | - |  | ---- | -
|Net interest margin                                                                       |  | 4.65 | % |  | 5.07 | %
|Ratio of interest-earning assets to                                                       |  |      |   |  |      |  
|interest-bearing liabilities                                                              |  | 1.38 | x |  | 1.49 | x
|(1) Includes tax equivalent adjustment for the Company's tax-exempt municipal securities. |  |      |  

17

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|                                                                                          |  | Average Balances, Interest and Average Yields
|----------------------------------------------------------------------------------------- |  | ---------------------------------------------
|                                                                                          |  | For the nine months ended                    
|                                                                                          |  | September 30, 2007                           
|                                                                                          |  |                                              
|                                                                                          |  | Average                                      
|                                                                                          |  | Balance                                      
|Assets:                                                                                   |  | (Dollars in thousands)                       
|Interest-earning assets:                                                                  |  |                                              
|Loans                                                                                     |  | $                                            
|Securities (1)                                                                            |  |                                              
|Federal funds sold & other                                                                |  |                                              
|Interest bearing deposits                                                                 |  |                                              
|Total interest-earning assets                                                             |  |                                              
|Noninterest-earning assets                                                                |  |                                              
|Total assets                                                                              |  | $                                            
|Liabilities and Shareholders' Equity:                                                     |  |                                              
|Interest-bearing liabilities:                                                             |  |                                              
|Savings accounts                                                                          |  | $                                            
|Time deposits                                                                             |  |                                              
|Money market accounts                                                                     |  |                                              
|Other interest bearing deposits                                                           |  |                                              
|Total interest-bearing deposits                                                           |  |                                              
|Borrowings                                                                                |  |                                              
|Total interest-bearing liabilities                                                        |  |                                              
|Noninterest-bearing deposits                                                              |  |                                              
|Other liabilities                                                                         |  |                                              
|Total liabilities                                                                         |  |                                              
|Shareholders' equity                                                                      |  |                                              
|Total liabilities and shareholders' equity                                                |  | $                                            
|Net interest income                                                                       |  |                                              
|Tax equivalent adjustment on securities                                                   |  |                                              
|Net interest income per consolidated                                                      |  |                                              
|financial statements                                                                      |  |                                              
|                                                                                          |  |                                              
|Net interest rate spread                                                                  |  |                                              
|Net interest margin                                                                       |  |                                              
|Ratio of interest-earning assets to                                                       |  |                                              
|interest-bearing liabilities                                                              |  |                                              
|(1) Includes tax equivalent adjustment for the Company's tax-exempt municipal securities. |  |                                              

18

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Rate Volume Analysis The following table analyzes the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing
liabilities.  This table shows the amount of the change in interest income or expense caused by either changes in outstanding balances (volume) or changes in interest rates. The effect of a change in volume is measured by applying the average rate
during the period to the volume change between the two periods. The effect of changes in rate is measured by applying the change in rate between the two periods to the average volume during the period.  Changes attributable to both rate and volume,
which cannot be segregated, have been allocated proportionately to the absolute value of the change due to volume and the change due to rate.

|                                   |  | Three months ended September 30, 2007 |      | Nine months ended September 30, 2007
|---------------------------------- |  | ------------------------------------- | ---- | ------------------------------------
|                                   |  | compared to three months              |      | compared to nine months             
|                                   |  | ended September 30, 2006              |      | ended September 30, 2006            
|                                   |  |                                       |      |                                     
|                                   |  | Increases (decreases) due to         
|                                   |  | Rate                                  |      | Volume                              
|                                   |  |                                       |      |                                     
|Assets:                            |  |                                       |      |                                     
|Interest-earning assets:           |  |                                       |      |                                     
|Loans                              |  | $                                     | 26   |                                     
|Securities (1)                     |  |                                       | 5    |                                     
|Federal funds sold & other         |  |                                       |      |                                     
|Interest bearing deposits          |  |                                       | (1   | )                                   
|Total interest-earning assets      |  |                                       | 30   |                                     
|                                   |  |                                       |      |                                     
|Interest-bearing liabilities:      |  |                                       |      |                                     
|Savings accounts                   |  |                                       | (42  | )                                   
|Time deposits                      |  |                                       | 120  |                                     
|Money market accounts              |  |                                       | 5    |                                     
|Other interest bearing deposits    |  |                                       | (2   | )                                   
|Total interest-bearing deposits    |  |                                       | 81   |                                     
|Borrowings                         |  |                                       | 94   |                                     
|Total interest-bearing liabilities |  |                                       | 175  |                                     
|                                   |  |                                       |      |                                     
|Net change (1)                     |  | $                                     | (145 | )                                   

(1) Includes tax equivalent adjustment for the Company's tax-exempt municipal securities.

Comparison of Financial Condition at September 30, 2007 and December 31, 2006:

Total assets at September 30, 2007 were $313.9 million, an increase of $15.1 million over assets of $298.8 million at December 31, 2006. The growth in total assets is attributable to the Company's loan portfolio which
increased by $14.1 million, or 5.3%, to $278.6 million at September 30, 2007 compared to $264.5 million at December 31, 2006. During the first nine months of 2007, the Company originated approximately $47.7 million of loans, compared
to approximately $37.3 million of loans originated in the same period of 2006. The majority of the loan originations for this year to date have been residential mortgage loans. Non-performing loans as a percentage of total loans increased
slightly to 0.44% at September 30, 2007 from 0.42% at December 31, 2006. The allowance for loan losses as a percentage of total loans was 0.69% and 0.74% at September 30, 2007 and December 31, 2006, respectively. In addition, the allowance for loan
losses as a percent of non-performing loans was 158.1% at September 30, 2007 compared to 178.0% at December 31, 2006.

Total deposits increased to $202.8 million at September 30, 2007 from $196.0 million at December 31, 2006, primarily due to increased marketing of checking and CD products. During the first
nine months of 2007, savings deposits decreased by $3.2 million, or 3.8%, while money market balances increased by $2.6 million, or 50.5% . Non-interest bearing balances increased by $1.6 million, or 5.8%, while time deposits increased
by $6.1 million, or 9.1% . Other interest bearing deposits decreased by $314,000, or 2.5%, during the first three quarters of 2007.

19

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FHLB borrowings increased from $20.2 million at December 31, 2006 to $35.2 million at the end of the current quarter. The incremental borrowings were used to fund loan growth and repurchase the Company's stock.

Comparison of Operating Results for the Three-Month Periods Ended September 30, 2007 and 2006

General

During the three months ended September 30, 2007, the Company recorded net income of $803,000 compared to net income of $920,000 for the same period in 2006. The decrease in net income is comprised of a $155,000
decrease in net interest income and a $131,000 increase in non-interest expense, partially offset by a $25,000 reduction in loan loss provision, a $44,000 increase in non-interest income and a $100,000 decrease in income tax
expense.

Diluted earnings per share were $0.11 per diluted share for both the quarters ended September 30, 2007 and 2006. Average diluted shares decreased to 7,624,293 for the third quarter of 2007 from
8,313,604 in the same period of 2006 due to the Company's stock repurchases over the past year.

Net Interest Income

Net interest income before loan loss provision for the quarter ended September 30, 2007 decreased by $155,000, or 4.5%, compared to the same quarter of 2006. This decrease is attributable to
higher deposit and borrowing interest expense, partially offset by increases in the balance of and yields earned on the Company's earning assets.

Interest Income

Interest income increased to $4.5 million for the third quarter of 2007 compared to $4.3 million for the same period in 2006. Average loan balances for the third quarter of 2007 were
$272.0 million, an increase of $16.6 million over the average outstanding loans for the third quarter of 2006. The yield on the Company's loan portfolio for the quarter ended September 30, 2007 increased to 6.46% from a yield of 6.42% for
the same period in 2006. Interest income on securities declined $3,000 from $75,000 for the quarter ended September 30, 2006 to $72,000 for the quarter ended September 30, 2007. Interest income on federal funds sold and other interest
bearing deposits decreased by $61,000 to $13,000 for the quarter ended September 30, 2007 from the same quarter in 2006.  Average balances of federal funds sold decreased by $5.0 million to $1.1 million at September 30, 2007 from
$6.1 million at September 30, 2006 due to the Company's investments in treasury stock and its loan portfolio over the past year.

Interest Expense

Interest expense increased to $1.3 million in the quarter ended September 30, 2007 from $873,000 for the same quarter in 2006. Interest expense on deposits increased to $920,000 for the
quarter ended September 30, 2007 from $794,000 for the quarter ended September 30, 2006 due to increases in the average balances of deposits and rising rates paid on time deposits consistent with current market rates. Interest expense on
borrowed funds increased to $339,000 for the quarter ended September 30, 2007 from $79,000 for the comparative quarter of 2006 primarily due to an increase in the average balance of borrowings to $27.9 million in the current quarter
compared to $9.0 million in the third quarter of 2006. The increased debt level was used to finance growth in the loan portfolio and purchases of treasury stock. The cost of these borrowed funds increased to 4.82% in the third quarter of 2007,
compared to 3.49% in the same period of 2006, due to increases in prevailing borrowing rates.

20

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Provision for Loan Losses

The Company recorded no provision for loan losses in the third quarter of 2007 compared to a provision of $25,000 in the same quarter of 2006. During the current quarter, loan charge-offs were minimal. Asset quality remained
favorable at September 30, 2007 with non-performing loans as a percent of loans of 0.44% and the allowance for loan losses as a percent of non-performing loans of 158.1% at September 30, 2007, compared to 0.42% and 178.0%, respectively, at December
31, 2006. The allowance for loan losses as a percentage of loans was at 0.69% at September 30, 2007 compared to 0.74% at December 31, 2006.

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 $44,000 to $547,000 in the third quarter of 2007 from $503,000 in the same period in 2006. The increase in non-interest income is primarily attributable to
increases in fee income.

Non-interest expense increased by $131,000 to $2.6 million in the third quarter of 2007 compared to $2.4 million in the same period in 2006 due to higher employee and outside service
costs.

Income tax expense for the third quarter of 2007 decreased to $438,000 from $538,000 in the same period in 2006 due to a decrease in taxable income.

Comparison of Operating Results for the Nine-Month Periods Ended September 30, 2007 and 2006

General

During the nine months ended September 30, 2007, the Company recorded net income of $2.4 million compared to $1.7 million for the first three quarters of 2006. The increase in net income is comprised of a decrease in
non-interest expense of $1.4 million and a decrease of $140,000 in the loan loss provision, and an increase in non-interest income of $235,000 which was partially offset by a $735,000 decrease in net interest income before loan loss
provision and a $264,000 increase in income tax expense.

Diluted earnings per share were $0.30 for the nine months ended September 30, 2007 compared to $0.19 for the same period of 2006. The increase in earnings per share is directly attributed to
the above referenced increase in year-to-date net income, as well as by a decrease in average outstanding diluted shares from 8,867,972 to 7,901,601.

Net Interest Income

Net interest income before loan loss provision for the nine months ended September 30, 2007 decreased by $735,000, or 7.0%, compared to the same period in 2006. This decrease is attributable
to increases in interest paid on deposits and borrowings and a decrease in the amount of average earning assets.

Interest Income

Interest income increased to $13.3 million for the nine months ended September 30, 2007 from $13.1 million for the same period in 2006. Average earning assets for the first nine months of 2007
decreased to $275.5 million from $281.4 million as interest bearing funds were used to purchase Bank-owned life insurance and treasury stock. The yield on earning assets increased to 6.46% for the nine months ended September 30, 2007, from
6.24% for the same period in 2006. Average loan balances for the first nine months of 2007 were

21

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$268.0 million, an increase of $14.5 million over the average outstanding loans for the same period in 2006. The yield on the Company's loan portfolio for the nine months ended September 30, 2007 was 6.49% compared to a
yield of 6.39% for the same period last year, reflecting current market rates. Interest income on securities declined $81,000 from $305,000 for the nine months ended September 30, 2006 to $224,000 for the nine months ended September 30,
2007. Comparatively, the average balance of securities declined by $2.6 million, or 28.4%, from the first nine months of 2006 to $6.5 million for the current year to date and the yield on the Company's securities increased to 5.47% from
5.44% for the same periods, respectively. Interest income on federal funds sold and other interest bearing deposits decreased by $610,000 to $40,000 for the first nine months of 2007 from the same period in 2006 due to a decrease in average
balances of these funds from $18.9 million in the first three quarters of 2006 to $1.1 million for the comparable period in 2007. As indicated above, these funds were utilized to fund the Company's loan portfolio, treasury stock and
Bank-owned life insurance.

Interest Expense

Interest expense increased to $3.4 million for the first nine months of 2007 from $2.5 million for the nine months ended September 30, 2006. Interest expense on deposits increased to $2.6
million for the three quarters ended September 30, 2007 from $2.3 million for the nine months ended September 30, 2006, due to rising rates paid on time deposits consistent with current market rates. Interest expense on borrowed funds increased
to $886,000 for the nine months ended September 30, 2007 from $238,000 for the comparative period in 2006 primarily due to an increase in the average balance of borrowings to $24.7 million in the current year to date period as compared
to $9.0 million in the nine months ended 2006. The increased borrowings were used to fund the aforementioned investments that have been made over the eighteen months.

Provision for Loan Losses

The Company recorded no provision for loan losses in the first three quarters of 2007 compared to a provision for loan losses in the amount of $140,000 in the same period in 2006. The Company's loss experience for the first
nine months of 2007 has been favorable with year-to-date charge-offs of $37,000 compared to $150,000 for the same period in 2006. In addition, the majority of the growth in the Company's loan portfolio has been in the residential mortgage
sector, which is well collateralized and historically has had a lower loss rate than the overall portfolio.

Non-Interest Income and Non-Interest Expense

Non-interest income increased by $235,000 to $1.6 million for the first nine months of 2007 compared to $1.4 million in the same period of 2006. This increase is primarily attributable to
increased earnings on Bank-owned life insurance which was acquired in mid-2006, as well as increases in fee revenue.

Non-interest expense decreased to $7.7 million in the first nine months of 2007 compared to $9.1 million in the same period in 2006, primarily due to lower benefit costs related to the
Company's stock-based compensation plans. In the second quarter of 2006, the Company granted stock options and restricted stock awards which are being accounted for using the fair value methodology of SFAS No. 123(R). Total non-cash amortization
expense related to these plans was $1.6 million in the nine months ended September 30, 2006, the majority of which was immediate expensing of options and stock grants made to individuals eligible for retirement under the provisions of the
Company's defined benefit plan. The ongoing 2007 amortization expense related to these stock-based plans was $194,000.

Income tax expense for the first nine months of 2007 increased to $1.3 million from $1.1 million in the same period in 2006, due to the increase in pre-tax income.

22

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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 $60.4 million. At September 30, 2007, the Bank had outstanding
borrowings of $27.6 million on this line of credit, as well as outstanding advances and amortizing notes totaling $7.6 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 nine months ended September 30, 2007, the Company
originated loans of approximately $47.7 million, compared to $37.3 million of loans originated in the same period in 2006.

At September 30, 2007, the Company had loan commitments to borrowers of approximately $8.2 million, and available letters and lines of credit of approximately $18.9 million.

Time deposit accounts scheduled to mature within one year were $47.7 million at September 30, 2007. Based on our deposit retention experience and current pricing strategy, we anticipate that a
significant portion of these time deposits will remain with us.  We are committed to maintaining a strong liquidity position; therefore, the Company monitors its liquidity position on a daily basis.  We anticipate that we will have sufficient funds
to meet our 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 we monitor our liquidity needs.  Therefore, in order to
minimize its cost of funds, we may consider additional borrowings from the Federal Home Loan Bank in the future.

At September 30, 2007, the Bank exceeded each of the applicable regulatory capital requirements. The Bank's leverage (Tier 1) capital at September 30, 2007 was $63.4 million, or 20.21% of adjusted
assets. In order to be classified as "well-capitalized" by the OTS, the Bank is required to have leverage (Tier 1) capital of $15.6 million, or 5.0% of adjusted assets. To be classified as a well-capitalized bank by the OTS, the Bank must also
have a total risk-based capital ratio of 10.0% or greater. At September 30, 2007, the Bank had a total risk-based capital ratio of 27.80% .

The Company paid cash dividends of $0.24 per share during the nine-month period ended September 30, 2007 totaling $1.9 million.

During 2007, the Company's Board of Directors authorized the repurchase of 838,100 of the Company's outstanding common shares. Through September 30, 2007, $8.2 million was expended to repurchase
666,772 shares.

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.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, revenues or expenses, results
of operations, liquidity, capital expenditures or capital resources that is material to investors.

23

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

There has been no material change in the Company's interest rate risk profile since December 31, 2006. For a more complete discussion of the Company's asset and liability management policies see
"Management's Discussion and Analysis of Financial Condition and Results of Operations" under the heading "Management of Interest rate Risk" in Exhibit 13.1 to the Company's 2006 Form 10-K.

Item 4. Controls and Procedures

Management, including the Company's President and Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) as of the end of the period covered by this report. Based upon that evaluation, the President and Chief Executive Officer and the Chief Financial Officer concluded that the disclosure controls and procedures were effective
to ensure that information required to be disclosed in the reports the Company files and submits under the Exchange Act is (i) recorded, processed, summarized and reported as and when required and (ii) accumulated and communicated to the Company's
management, including the Company's President and Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in the Company's internal controls over financial reporting identified in connection with the evaluation that
occurred during the Company's last fiscal quarter that has materially affected, or that is reasonably likely to materially affect, the Company's internal control over financial reporting.

Part II - OTHER INFORMATION

|Item 1.  | Legal Proceedings                                                                                                                                       
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|         |                                                                                                                                                         
|         | None.                                                                                                                                                   
|         |                                                                                                                                                         
|Item 1A. | Risk Factors                                                                                                                                            
|         |                                                                                                                                                         
|         | There have been no material changes to the Company's risk factors previously disclosed in the Company's Form 10-K for the year ending December 31, 2006.

24

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|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds
|------- | -----------------------------------------------------------



The following table provides information with respect to purchases made by or on behalf of the Company or any affiliated purchases (as defined in rule 10b-18 (a)(3) under the Securities Exchange Act
of 1934) of the Company's common stock during the quarter ended September 30, 2007.

COMPANY PURCHASES OF EQUITY SECURITIES

|                 |  |                  |  |                   |       |  |                      |              | (d) Maximum      
|---------------- |  | ---------------- |  | ----------------- | ----- |  | -------------------- | ------------ | -----------------
|                 |  |                  |  |                   |       |  | (c) Total Number of  |              | Number (or       
|                 |  |                  |  |                   |       |  | Shares (or Units)    |              | Approximate      
|                 |  |                  |  |                   |       |  | Purchased as Part of |              | Dollar Value) of 
|                 |  |                  |  |                   |       |  | Publicly Announced   |              | Shares (or Units)
|                 |  |                  |  |                   |       |  | Plans or Programs    |              | that may yet be  
|                 |  | (a) Total Number |  |                   |       |  |                      |              | Purchased under  
|                 |  | of Shares (or    |  | (b) Average Price |       |  |                      | the Plans or
|                 |  | Units) Purchased |  | Paid per Share    |       |  |                      | Programs    
|Period           |  |                  |  | (or Unit)         |       |  |                      |             
|July 1, 2007     |  | 143,400          |  | $                 | 12.03 |  | 143,400              |              | 413,528          
|through July 31, |  |                  |  |                   |       |  |                      |              |                  
|2007             |  |                  |  |                   |       |  |                      |              |                  
|August 1, 2007   |  | 196,300          |  | $                 | 11.96 |  | 196,300              |              | 217,228          
|through August   |  |                  |  |                   |       |  |                      |              |                  
|31, 2007         |  |                  |  |                   |       |  |                      |              |                  
|September 1,     |  | 45,900           |  | $                 | 11.95 |  | 45,900               |              | 171,328          
|2007 through     |  |                  |  |                   |       |  |                      |              |                  
|September 30,    |  |                  |  |                   |       |  |                      |              |                  
|2007             |  |                  |  |                   |       |  |                      |              |                  
|Total            |  | 385,600          |  | $                 | 11.99 |  | 385,600              |              | 171,328          

|Item 3. | Defaults Upon Senior Securities                    
|------- | ---------------------------------------------------
|        |                                                    
|        | None.                                              
|        |                                                    
|Item 4. | Submission of Matters to a Vote of Security Holders
|        |                                                    
|        | None.                                              
|        |                                                    
|Item 5. | Other Information                                  
|        |                                                    
|        | None.                                              

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Item 6. Exhibits

|3.1   |  | Certificate of Incorporation of New Rome Bancorp, Inc. (1)                                                              
|----- |  | ------------------------------------------------------------------------------------------------------------------------
|3.2   |  | Bylaws of New Rome Bancorp, Inc. (1)                                                                                    
|4.1   |  | Form of Stock Certificate of New Rome Bancorp, Inc. (1)                                                                 
|10.1  |  | Form of Employee Stock Ownership Plan of Rome Bancorp, Inc. (2)                                                         
|10.2  |  | Amendment No. 1 to Employee Stock Ownership Plan of Rome Bancorp, Inc. (1)                                              
|10.3  |  | Amendment No. 2 to Employee Stock Ownership Plan of Rome Bancorp, Inc. (1)                                              
|10.4  |  | Form of Executive Employment Agreement by and between Charles M. Sprock and Rome Bancorp, Inc. (2)                      
|10.5  |  | Form of One Year Change in Control Agreement by and among certain officers and Rome Bancorp, Inc. and The               
|      |  | Rome Savings Bank. (1)                                                                                                  
|10.6  |  | Form of Employment Agreement between New Rome Bancorp, Inc. and Charles M. Sprock. (1)                                  
|10.7  |  | Form of Employment Agreement between The Rome Savings Bank and Charles M. Sprock. (1)                                   
|10.8  |  | Rome Bancorp, Inc. 2000 Stock Option Plan. (3)                                                                          
|10.9  |  | Rome Bancorp, Inc. 2000 Recognition and Retention Plan. (3)                                                             
|10.10 |  | Amended and Restated Benefit Restoration Plan of Rome Bancorp, Inc. (4)                                                 
|10.11 |  | Amended and Restated
            Directors Deferred Compensation Plan of Rome Bancorp, Inc.
        (4)                
|10.12 |  | Loan Agreement by
            and between the Employee Stock Ownership Plan Trust of Rome Bancorp,
        Inc. and Rome
|      |  | Bancorp, Inc. (5)                                                                                                       
|10.13 |  | Amendment No. 3 to the Employee Stock Ownership Plan of Rome Bancorp, Inc. (6)                                          
|10.14 |  | 10.14 Rome Bancorp, Inc. 2006 Stock Option Plan. (7)                                                                    
|10.15 |  | Rome Bancorp, Inc. 2006 Recognition and Retention Plan. (7)                                                             
|31.1  |  | Rule 13a-14a/15d-14a Certification.                                                                                     
|31.2  |  | Rule 13a-14a/15d-14a Certification.                                                                                     
|32.1  |  | Section 1350 Certification.                                                                                             
|32.2  |  | Section 1350 Certification.                                                                                             

____________________

|(1 | ) |  | Incorporated by reference to Rome Bancorp, Inc.s Form S-1 (Registration No. 333-121245), filed with the Commission on 
|-- | - |  | -----------------------------------------------------------------------------------------------------------------------
|   |   |  | December 14, 2004, as amended.                                                                                         
|(2 | ) |  | Incorporated by reference to Rome Bancorp, Inc.s Form SB-2 (Registration No. 333-80487), filed with the Commission on 
|   |   |  | June 11, 1999, as amended.                                                                                             
|(3 | ) |  | Incorporated by reference to Rome Bancorp, Incs Proxy Statement on Schedule 14A, filed with the Commission on April 5,
|   |   |  | 2000 and amended on April 2, 2001.                                                                                     
|(4 | ) |  | Incorporated by reference to Rome Bancorp, Inc.s Form 8-K filed with the Commission on December 27, 2005.             
|(5 | ) |  | Incorporated by reference to Rome Bancorp, Inc.s Form 8-K filed with the Commission on March 29, 2005.                
|(6 | ) |  | Incorporated by reference to Rome Bancorp, Inc.s Form 8-K filed with the Commission on August 29, 2005.               
|(7 | ) |  | Incorporated by reference to Rome Bancorp, Inc.'s Form S-8 filed with the commission on May 19, 2006, as amended.      

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SIGNATURES

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

ROMEBANCORP,INC.

|Name                  |  | Title                    |  | Date            
|--------------------- |  | ------------------------ |  | ----------------
|                     
|/s/ Charles M. Sprock |  | Chairman of the Board,   |  | November 7, 2007
|Charles M. Sprock     |  | President and Chief      |  |                 
|                      |  | Executive Officer        |  |                 
|                      |  | (Principal Executive     |  |                 
|                      |  | Officer)                 |  |                 
|                     
|                     
|                     
|/s/ David C. Nolan    |  | Executive Vice President |  | November 7, 2007
|David C. Nolan        |  | and Chief Financial      |  |                 
|                      |  | Officer (Principal       |  |                 
|                      |  | Financial Officer)       |  |                 

27

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