UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2007

Commission file number 000-27481

Rome Bancorp, Inc.(Exact name of registrant as specified in its charter)

|Delaware                                                            | 16-1573070                             
|------------------------------------------------------------------- | ---------------------------------------
|(State or other jurisdiction of
     incorporation or organization) | (I.R.S. Employer
   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 T     No £

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

Large accelerated filer £          
           Accelerated filer T          
           Non-accelerated filer £

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

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                        |  | May 4, 2007   
|Common Stock, par value $.01 |  | 8,424,483     



1

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ROME BANCORP, INC.
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2007

TABLE 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                         |  | 13   | 
|ITEM    |  | 3 | .  |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  |  | 20   | 
|ITEM    |  | 4 | .  |  | CONTROLS AND PROCEDURES                                     |  | 20   | 
|       
|PART II |  |   |    |  | OTHER INFORMATION                                           |  |      | 
|       
|ITEM    |  | 1 | .  |  | LEGAL PROCEEDINGS                                           |  | 21   | 
|ITEM    |  | 1 | A. |  | RISK FACTORS                                                |  | 21   | 
|ITEM    |  | 2 | .  |  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |  | 21   | 
|ITEM    |  | 3 | .  |  | DEFAULTS UPON SENIOR SECURITIES                             |  | 22   | 
|ITEM    |  | 4 | .  |  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS         |  | 22   | 
|ITEM    |  | 5 | .  |  | OTHER INFORMATION                                           |  | 22   | 
|ITEM    |  | 6 | .  |  | EXHIBITS                                                    |  | 22   | 
|       
|        |  |   |    |  | SIGNATURES                                                  |  | 23   | 

2

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PART I FINANCIAL INFORMATION

Item 1.  Financial Statements

ROME BANCORP, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheet
March 31, 2007 and December 31, 2006
(in thousands, except share data)

|                                                                                 |  | (Unaudited)
    March 31,
        2007 |         |   | December 31,
  2006 |  
|-------------------------------------------------------------------------------- |  | -------------------------------------- | ------- | - | ------------------- | -
|Assets                                                                           |  |                                        |         |   |                     |  
|                                                                                 |  |                                        |         |   |                     |  
|Cash and due from banks                                                          |  | $                                      | 6,596   |   |                     | $
|Federal funds sold and other short-term investments                              |  |                                        | 1,225   |   |                     |  
|Total cash and cash equivalents                                                  |  |                                        | 7,821   |   |                     |  
|Securities available for sale, at fair value                                     |  |                                        | 4,008   |   |                     |  
|Securities held to maturity (fair value of $1,175 and $1,175                     |  |                                        |         |   |                     |  
|at March 31, 2007 and December 31, 2006, respectively)                           |  |                                        | 1,170   |   |                     |  
|Federal Home Loan Bank Stock                                                     |  |                                        | 1,534   |   |                     |  
|Loans                                                                            |  |                                        | 268,730 |   |                     |  
|Less: Allowance for loan loss                                                    |  |                                        | (1,974  | ) |                     |  
|Net loans                                                                        |  |                                        | 266,756 |   |                     |  
|Premises and equipment, net                                                      |  |                                        | 6,406   |   |                     |  
|Accrued interest receivable                                                      |  |                                        | 1,080   |   |                     |  
|Bank-owned life insurance                                                        |  |                                        | 8,309   |   |                     |  
|Other assets                                                                     |  |                                        | 5,861   |   |                     |  
|Total assets                                                                     |  | $                                      | 302,945 |   |                     | $
|                                                                                
|Liabilities & Equity                                                             |  |                                        |         |   |                     |  
|                                                                                
|Liabilities                                                                      |  |                                        |         |   |                     |  
|Deposits:                                                                        |  |                                        |         |   |                     |  
|Non-interest bearing                                                             |  | $                                      | 28,317  |   |                     | $
|Savings                                                                          |  |                                        | 85,612  |   |                     |  
|Money market                                                                     |  |                                        | 6,192   |   |                     |  
|Time                                                                             |  |                                        | 66,605  |   |                     |  
|Other interest bearing                                                           |  |                                        | 11,668  |   |                     |  
|Total deposits                                                                   |  |                                        | 198,394 |   |                     |  
|Borrowings                                                                       |  |                                        | 23,316  |   |                     |  
|Other liabilities                                                                |  |                                        | 5,109   |   |                     |  
|Total liabilities                                                                |  |                                        | 226,819 |   |                     |  
|                                                                                
|Shareholders' equity                                                             |  |                                        |         |   |                     |  
|Common Stock, $.01 par value; authorized: 30,000,000 shares;                     |  |                                        |         |   |                     |  
|issued and outstanding 9,876,983 and 8,476,983 shares at March 31,               |  |                                        |         |   |                     |  
|2007 and 9,726,572 and 8,461,572 shares at December 31, 2006                     |  |                                        | 99      |   |                     |  
|Additional paid-in capital                                                       |  |                                        | 61,300  |   |                     |  
|Retained earnings                                                                |  |                                        | 35,825  |   |                     |  
|Accumulated other comprehensive income (loss)                                    |  |                                        | (646    | ) |                     |  
|Treasury stock; 1,400,000 shares at March 31, 2007 and 1,265,000 shares          |  |                                        |         |   |                     |  
|at December 31, 2006                                                             |  |                                        | (18,026 | ) |                     |  
|Unallocated shares of employee stock ownership plan (ESOP); 404,680              |  |                                        |         |   |                     |  
|shares at March 31, 2007 and 416,171 shares at December 31, 2006                 |  |                                        | (2,426  | ) |                     |  
|Total shareholders' equity                                                       |  |                                        | 76,126  |   |                     |  
|Total liabilities and shareholders' equity                                       |  | $                                      | 302,945 |   |                     | $
|                                                                                
|See accompanying notes to unaudited condensed consolidated financial statements. |  |                                        |         |   |                     |  

3

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ROME BANCORP, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Income
For the Three Months Ended March 31, 2007 and 2006
(in thousands, except share data)
(unaudited)

|                                                    |  | For the three months ended
|--------------------------------------------------- |  | --------------------------
|                                                    |  | March 31,                 
|                                                    |  | 2007                      
|Interest income:                                    |  |                           
|Loans                                               |  | $                         
|Securities                                          |  |                           
|Other short-term investments                        |  |                           
|Total interest income                               |  |                           
|                                                   
|Interest expense:                                   |  |                           
|Deposits                                            |  |                           
|Borrowings                                          |  |                           
|Total interest expense                              |  |                           
|                                                   
|Net interest income                                 |  |                           
|                                                   
|Provision for loan losses                           |  |                           
|Net interest income after provision for loan losses |  |                           
|                                                   
|Non-interest income:                                |  |                           
|Net gain on securities                              |  |                           
|Other                                               |  |                           
|Total non-interest income                           |  |                           
|                                                   
|Non-interest expense:                               |  |                           
|Salaries and employee benefits                      |  |                           
|Building, occupancy and equipment                   |  |                           
|Other                                               |  |                           
|Total non-interest expense                          |  |                           
|                                                   
|Income before income tax expense                    |  |                           
|Income tax expense                                  |  |                           
|Net income                                          |  | $                         
|                                                   
|Basic earnings per share                            |  | $                         
|Diluted earnings per share                          |  | $                         



See accompanying notes to unaudited condensed consolidated financial statements.



4

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ROME BANCORP, INC. AND SUBSIDIARY
Condensed Consolidated Statement of Shareholders Equity and Comprehensive Income
For the Three Months Ended March 31, 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           |  | $                | 97 |  |                                            | $ | 60,013 |                           |  | $ | 35,983           |   |       | $                                                               | -       |   |                                         | $ | 85   |   | 
|Comprehensive income:                 |  |                  |    |  |                                            |   |        |                           |  |   |                  |   |       |                                                                 |         |   |                                         |   |      |   | 
|Net Income                            |  |                  | -  |  |                                            |   | -      |                           |  |   | 808              |   |       |                                                                 | -       |   |                                         |   | -    |   | 
|Other comprehensive loss              |  |                  | -  |  |                                            |   | -      |                           |  |   |                  |   |       |                                                                 | -       |   |                                         |   | (15  | ) | 
|Total comprehensive income            |  |                  |    |  |                                            |   |        |                           |  |   |                  |   |       |                                                                 |         |   |                                         |   |      |   | 
|Dividends paid ($0.075 per share)     |  |                  | -  |  |                                            |   | -      |                           |  |   | (692             | ) |       |                                                                 | -       |   |                                         |   | -    |   | 
|Exercise of stock options             |  |                  | -  |  |                                            |   | 116    |                           |  |   | -                |   |       |                                                                 | -       |   |                                         |   | -    |   | 
|ESOP shares released for              |  |                  |    |  |                                            |   |        |                           |  |   |                  |   |       |                                                                 |         |   |                                         |   |      |   | 
|allocation (11,491 shares)            |  |                  |    |  |                                            |   | 77     |                           |  |   | -                |   |       |                                                                 | -       |   |                                         |   | -    |   | 
|Balances at March 31, 2006            |  | $                | 97 |  |                                            | $ | 60,206 |                           |  | $ | 36,099           |   |       | $                                                               | -       |   |                                         | $ | 70   |   | 
|                                     
|Balances at January 1, 2007           |  | $                | 97 |  |                                            | $ | 60,712 |                           |  | $ | 35,643           |   |       | $                                                               | (16,307 | ) |                                         | $ | (633 | ) | 
|Comprehensive income:                 |  |                  |    |  |                                            |   |        |                           |  |   |                  |   |       |                                                                 |         |   |                                         |   |      |   | 
|Net Income                            |  |                  | -  |  |                                            |   | -      |                           |  |   | 837              |   |       |                                                                 | -       |   |                                         |   | -    |   | 
|Other comprehensive loss              |  |                  | -  |  |                                            |   | -      |                           |  |   | -                |   |       |                                                                 | -       |   |                                         |   | (13  | ) | 
|Total comprehensive income            |  |                  |    |  |                                            |   |        |                           |  |   |                  |   |       |                                                                 |         |   |                                         |   |      |   | 
|Purchase of 135,000 treasury shares   |  |                  | -  |  |                                            |   | -      |                           |  |   | -                |   |       |                                                                 | (1,719  | ) |                                         |   | -    |   | 
|Amortization of unearned compensation |  |                  | -  |  |                                            |   | 64     |                           |  |   | -                |   |       |                                                                 | -       |   |                                         |   | -    |   | 
|Dividends paid ($0.08 per share)      |  |                  | -  |  |                                            |   | -      |                           |  |   | (655             | ) |       |                                                                 | -       |   |                                         |   | -    |   | 
|Exercise of stock options             |  |                  | 2  |  |                                            |   | 435    |                           |  |   | -                |   |       |                                                                 | -       |   |                                         |   | -    |   | 
|ESOP shares released for              |  |                  |    |  |                                            |   |        |                           |  |   |                  |   |       |                                                                 |         |   |                                         |   |      |   | 
|allocation (11,491 shares)            |  |                  | -  |  |                                            |   | 89     |                           |  |   | -                |   |       |                                                                 | -       |   |                                         |   | -    |   | 
|Balances at March 31, 2007            |  | $                | 99 |  |                                            | $ | 61,300 |                           |  | $ | 35,825           |   |       | $                                                               | (18,026 | ) |                                         | $ | (646 | ) | 

See accompanying notes to unaudited condensed consolidated financial statements.





5

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ROME BANCORP, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2007 and 2006
(unaudited) (in thousands)

|                                                     |  | 2007 |        |   | 2006 |  
|---------------------------------------------------- |  | ---- | ------ | - | ---- | -
|Cash flows from operating activities:                |  |      |        |   |      |  
|Net income                                           |  | $    | 837    |   |      | $
|Adjustments to reconcile net income to net cash      |  |      |        |   |      |  
|Provided by operating activities:                    |  |      |        |   |      |  
|Depreciation and amortization                        |  |      | 136    |   |      |  
|Decrease (Increase) in accrued interest receivable   |  |      | 14     |   |      |  
|Net gain on securities sold                          |  |      | -      |   |      |  
|Provision for loan losses                            |  |      | -      |   |      |  
|Net accretion on securities                          |  |      | (3     | ) |      |  
|Proceeds from sales of loans                         |  |      | 645    |   |      |  
|Net gain on loans sold                               |  |      | (7     | ) |      |  
|Originations of loans held for sale                  |  |      | (638   | ) |      |  
|Decrease in other liabilities                        |  |      | (442   | ) |      |  
|Increase in cash surrender value of life insurance   |  |      | (94    | ) |      |  
|Decrease in other assets                             |  |      | 261    |   |      |  
|Allocation of ESOP shares                            |  |      | 144    |   |      |  
|Amortization of unearned compensation                |  |      | 64     |   |      |  
|Net cash provided by operating activities            |  |      | 917    |   |      |  
|                                                    
|Cash flows from investing activities:                |  |      |        |   |      |  
|Net increase in loans                                |  |      | (4,184 | ) |      |  
|Proceeds from sales of securities available for sale |  |      | -      |   |      |  
|Proceeds from maturities and principal reductions of |  |      |        |   |      |  
|securities available for sale                        |  |      | 283    |   |      |  
|Purchases of Federal Home Loan Bank stock            |  |      | (190   | ) |      |  
|Proceeds from maturities and principal reductions of |  |      |        |   |      |  
|securities held to maturity                          |  |      | 9      |   |      |  
|Additions to premises and equipment                  |  |      | (468   | ) |      |  
|Net cash (used in) provided by investing activities  |  |      | (4,550 | ) |      |  
|                                                    
|Cash flows from financing activities:                |  |      |        |   |      |  
|Increase in time deposits                            |  |      | 204    |   |      |  
|Increase in other deposits                           |  |      | 2,185  |   |      |  
|Repayments of borrowings                             |  |      | (2,456 | ) |      |  
|Additional borrowings                                |  |      | 5,600  |   |      |  
|Purchase of treasury stock                           |  |      | (1,719 | ) |      |  
|Dividends paid                                       |  |      | (655   | ) |      |  
|Exercise of stock options                            |  |      | 437    |   |      |  
|Net cash provided by financing activities            |  |      | 3,596  |   |      |  
|                                                    
|Net (decrease) increase in cash and cash equivalents |  |      | (37    | ) |      |  
|Cash and cash equivalents at beginning of period     |  |      | 7,858  |   |      |  
|Cash and cash equivalents at end of period           |  | $    | 7,821  |   |      | $

Condensed Consolidated Statements of Cash Flows continued on next page.



6

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ROME BANCORP, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2007 and 2006
(unaudited) (in thousands)

|                                                  |  | 2007 |       |  | 2006 |  
|------------------------------------------------- |  | ---- | ----- |  | ---- | -
|Supplemental disclosure of cash flow information: |  |      |       |  |      |  
|Non-cash investing activities:                    |  |      |       |  |      |  
|Cash paid during the period for:                  |  |      |       |  |      |  
|Interest                                          |  | $    | 1,053 |  |      | $
|Income taxes                                      |  |      | 7     |  |      |  

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 March 31, 2007 and December 31, 2006 and for the three month periods ended March 31, 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 month periods ended March 31, 2007 and 2006.

| | Three months ended March 31                     |                   
| | ----------------------------------------------- | ------------------
| | (in thousands, except share and per share data) |                   
| |                                                 |                   
| |                                                 | Three months ended
| |                                                 |                   
| | 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                                   |                   
| | Unearned compensation                           |                   
| | Weighted average diluted shares outstanding     |                   
| |                                                 |                   
| | Diluted earnings per share                      | $                 

(3)  Other Comprehensive Income (Loss)

| |                                                         |   |                    |   |  |   |      |  
| | ------------------------------------------------------- | - | ------------------ | - |  | - | ---- | -
| |                                                         |   |                    |   |  |   |      |  
| |                                                         |   |                    |   |  |   |      |  
| |                                                         |   | Three months ended |  
| |                                                         |   | March 31,          |  
| |                                                         |   |                    |   |  |   |      |  
| |                                                         |   | 2007               |   |  |   | 2006 |  
| | Pension and postretirement adjustments                  | $ | 10                 |   |  | $ | -    |  
| | Net change in unrealized gain (loss) on                 |   |                    |   |  |   |      |  
| | available-for-sale securities arising during the period |   | (31                | ) |  |   | (36  | )
| | Reclassification adjustment for net realized gain       |   |                    |   |  |   |      |  
| | included in net income                                  |   | -                  |   |  |   | (11  | )
| | Other comprehensive loss, before tax                    |   | (21                | ) |  |   | (25  | )
| | Deferred tax benefit                                    |   | (8                 | ) |  |   | (10  | )
| |                                                         |   |                    |   |  |   |      |  
| | Other comprehensive loss                                |   | (13                | ) |  |   | (15  | )
| | Net income                                              |   | 837                |   |  |   | 808  |  
| | Total comprehensive income                              | $ | 824                |   |  | $ | 793  |  

9

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(4)  Securities

Securities are summarized as follows (in thousands):

|                                | March 31, 2007 |       | December 31, 2006 |  
|------------------------------- | -------------- | ----- | ----------------- | -
|                                | Amortized      |       | Fair              |  
|                                | Cost           |       | value             |  
|Available-for-sale:             |                |       |                   |  
|U.S. Government agencies        | $              | 395   |                   | $
|State and municipal obligations |                | 2,115 |                   |  
|Mortgage-backed securities      |                |       |                   |  
|FHLMC                           |                | 321   |                   |  
|                                |                |       |                   |  
|Total debt securities           |                | 2,831 |                   |  
|                                |                |       |                   |  
|Equity and other securities     |                | 1,137 |                   |  
|                                |                |       |                   |  
|Total available for sale        | $              | 3,968 |                   | $
|                                |                |       |                   |  
|Held-to-maturity:               |                |       |                   |  
|U.S. Government securities      | $              | 1,001 |                   | $
|Mortgage-backed securities      |                |       |                   |  
|GNMA                            |                | 23    |                   |  
|FHLMC                           |                | 2     |                   |  
|Other bonds                     |                | 144   |                   |  
|                                |                |       |                   |  
|Total held to maturity          | $              | 1,170 |                   | $
|                                |                |       |                   |  
|FHLB stock                      | $              | 1,534 |                   | $

Securities pledged at both March 31, 2007 and December 31, 2006 had a carrying amount of $1.0 million. These securities collateralize state and 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):

|                                                                                   |  |                             | March 31,
    2007 |         | December 31
  2006 |  |   |       |         |   | 
|---------------------------------------------------------------------------------- |  | --------------------------- | ------------------ | ------- | ------------------ |  | - | ----- | ------- | - | 
|                                                                                   |  |                             |                   
|Mortgage loans:                                                                    |  |                             |                    |         |                    |  |   |       |         |   | 
|Residential (1-4 family)                                                           |  |                             | $                  | 137,301 |                    |  | $ |       | 135,078 |   | 
|Commercial                                                                         |  |                             |                    | 53,559  |                    |  |   |       | 54,493  |   | 
|Construction and land                                                              |  |                             |                    | 3,201   |                    |  |   |       | 2,562   |   | 
|                                                                                  
|Total Mortgage loans                                                               |  |                             |                    | 194,061 |                    |  |   |       | 192,133 |   | 
|Other loans:                                                                       |  |                             |                    |         |                    |  |   |       |         |   | 
|Commercial                                                                         |  |                             |                    | 26,278  |                    |  |   |       | 24,189  |   | 
|Automobile loans                                                                   |  |                             |                    | 16,906  |                    |  |   |       | 17,779  |   | 
|Property improvement                                                               |  |                             |                    |         |                    |  |   |       |         |   | 
|and equipment                                                                      |  |                             |                    | 15,258  |                    |  |   |       | 15,536  |   | 
|Other consumer                                                                     |  |                             |                    | 16,227  |                    |  |   |       | 14,900  |   | 
|                                                                                   |  |                             |                    |         |                    |  |   |       |         |   | 
|Total Other loans                                                                  |  |                             |                    | 74,669  |                    |  |   |       | 72,404  |   | 
|                                                                                   |  |                             |                    |         |                    |  |   |       |         |   | 
|Total Loans                                                                        |  |                             | $                  | 268,730 |                    |  | $ |       | 264,537 |   | 
|                                                                                  
|Changes in the allowance for loan losses are summarized as follows (in thousands): | 
|                                                                                  
|                                                                                   |  | Three months endedMarch 31, |                   
|                                                                                   |  |                            
|                                                                                   |  | 2007                        |                    |         | 2006               |  |   |       |        
|                                                                                  
|Balance at beginning of period                                                     |  |                             | $                  | 1,965   |                    |  | $ |       | 1,960   |   | 
|Provision charged to operations                                                    |  |                             |                    | -       |                    |  |   |       | 115     |   | 
|Loans charged off                                                                  |  |                             |                    | (29     | )                  |  |   |       | (161    | ) | 
|Recoveries                                                                         |  |                             |                    | 38      |                    |  |   |       | 44      |   | 
|                                                                                  
|Balance at end of period                                                           |  |                             | $                  | 1,974   |                    |  | $ | 1,958 |         |  

The Company's recorded investment in loans that are considered impaired totaled $315,000 and $318,000 at March 31, 2007 and December 31, 2006, respectively.  These impaired loans carried
allowances of $134,000 at March 31, 2007 and $177,000 as of year-end 2006. The average recorded investment in impaired loans was $298,000 and $207,000 in the first quarter of 2007 and 2006, respectively. The Company recognized no
interest on impaired loans during the three month periods ended March 31, 2007 and 2006.

11

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The principal balances of loans not accruing interest amounted to $1.1 million at both March 31, 2007 and December 31, 2006. Loans 90 days past due and accruing interest amounted to $2,000 and $8,000 at March 31, 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 three months ended March 31, 2007 and 2006 was $25,100 and $30,800, 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. Accordingly, the ultimate 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 March 31, 2007, unrecognized compensation cost related to these options was $208,000. 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:

|                                         |  | Three Months ended March 31, 2007
|---------------------------------------- |  | ---------------------------------
|                                         |  | ( Dollars in thousands)          
|                                         |  | Shares                           
|Options outstanding, beginning of period |  | 524,891                          
|Exercised                                |  | (150,411                         
|Granted                                  |  | -                                
|Options outstanding at end of period     |  | 374,480                          
|Options exercisable at end of period     |  | 20,480                           

The aggregate intrinsic value of all options outstanding and exercisable at March 31, 2007 was $206,000. The intrinsic value of options exercised during the quarters ended March 31, 2007 and March 31, 2006 was $1.6 million and $241,000, respectively.

12

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|   |   |  | On May 24, 2006, the Company's Board of Directors awarded 168,300 shares of restricted stock to
directors and certain key employees. 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 March 31, 2007, the unrecognized compensation cost attributable
to restricted stock awards was $872,000. No restricted stock grants vested in the current quarter. The
aggregate intrinsic value of restricted stock that is expected to vest in the future was $2.1 million at
March 31, 2007.
|-- | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |   | 
|   |   | 
|   |   | 
|   |   | 
|   |   | 
|   |   | 
|   |   | 
|   |   | 
|  
|   |   |  | Compensation cost for the Company's stock option plans in the 2007 and 2006 first quarters was
$12,000 and $0, respectively. For the three months ended March 31, 2007 and 2006 compensation cost
related to the restricted stock plan was $52,000 and $0, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |   | 
|   |   | 
|  
|(7 | ) |  | Pension and Postretirement Medical Benefit Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   |   |  | The components of net periodic pension and postretirement benefit cost consisted of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| |                                          |  | Three months ended March 31, |      |      |                         |      |   |      |   
| | ---------------------------------------- |  | ---------------------------- | ---- | ---- | ----------------------- | ---- | - | ---- | --
| |                                          |  | (in thousands)               |      |      |                         |      |   |      |   
| |                                          |  | Pension benefits             |      |      | Postretirement benefits |     
| | Components of net periodic pension cost: |  | 2007                         |      | 2006 |                         | 2007 |   | 2006 |   
| | Service cost                             |  | $                            | -    |      | $                       | -    |   | $    | 6 
| | Interest cost                            |  |                              | 108  |      |                         | 106  |   |      | 35
| | Expected return on plan assets           |  |                              | (184 | )    |                         | (177 | ) |      | - 
| | Amortization                             |  |                              | 10   |      |                         | 17   |   |      | (2
|
| | Net periodic pension cost                |  | $                            | (66  | )    | $                       | (54  | ) | $    | 39

|   |   |  | 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, 2006, the Company expects
to make no contributions to the defined benefit pension plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-- | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|(8 | ) |  | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   |   |  | In February of 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 first
recognizes a financial asset or financial liability. Subsequent changes in fair value must be recorded in
earnings. This statement is effective as of the beginning of a companys first fiscal year after
November 15, 2007. 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.

13

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|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.

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 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 economics
of the area it operates in. 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 first quarter of 2007 was $837,000, an increase of 3.6% over the prior year's first quarter net income of $808,000. The significant factors and trends impacting the first quarter of 2007, which are
discussed in greater depth below, were as follows:

14

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- Net interest income decreased by $323,000 or 8.9% from the same quarter last year as a result of decreases in levels of average earning assets and an increase in interest expense.
- Due to favorable loan loss experience and continued strong asset quality, the Company recorded no provision for loan losses in the current quarter, as compared to a provision of $115,000 in the
same quarter of the prior year.
- Non-interest income increased by $102,000, or 24.1%, over the first quarter 2006 levels primarily due to a increases in cash surrender value on bank-owned life insurance.
- Non-interest expense decreased to $2.5 million in the first quarter of 2007 from $2.6 million for the same quarter of 2006.

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 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.

15

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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 municipals.

|                                                               |  | Average Balances, Interest and Average Yields | 
|-------------------------------------------------------------- |  | --------------------------------------------- | 
|                                                               |  |                                               | 
|                                                               |  |                                               | 
|                                                               |  |                                               | 
|                                                               |  |                                               | 
|Assets:                                                        |  |                                               | 
|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      |  |                                               | 
|                                                               |  |                                               | 
|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.

16

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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. It 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
first 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 first 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 March 31, 2007             |    
|---------------------------------- | --------------------------------------------- | ---
|                                   | Compared to Three months ended March 31, 2006 |    
|                                  
|                                   | Increases (decreases)
    due to              |    
|                                   | Rate                                          |    
|                                   | (in thousands)                                |    
|Assets:                            |                                               |    
|Interest-earning assets:           |                                               |    
|Loans                              | $                                             | 91 
|Securities (1)                     |                                               | (4 
|Federal funds sold & other         |                                               |    
|Interest bearing deposits          |                                               | 1  
|Total interest-earnings assets     |                                               | 88 
|                                  
|Interest-bearing liabilities:      |                                               |    
|Savings accounts                   |                                               | (41
|Time deposits                      |                                               | 118
|Money market accounts              |                                               | 13 
|Other interest bearing deposits    |                                               | (1 
|Total interest-bearing deposits    |                                               | 89 
|Borrowings                         |                                               | 67 
|Total interest-bearing liabilities |                                               | 156
|                                  
|Net change (1)                     | $                                             | (68

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

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

Total assets at March 31, 2007 were $302.9 million, an increase of $4.1 million over assets of $298.8 million at December 31, 2006. The growth is attributable to the Company's loan portfolio which increased by
$4.2 million, or 1.6%, during the first three months of 2007 from $264.5 million at December 31, 2006 to $268.7 million at March 31, 2007. During the first three months of 2007, the Company originated approximately $14.7 million of
loans, as compared to approximately $9.6 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 and installment loans. Non-performing loans as a
percentage of total loans decreased slightly to 0.41% at March 31, 2007 from 0.42% at December 31, 2006. The allowance for loan losses as a percentage of total loans was 0.73% and 0.74% at March 31, 2007 and December 31, 2006, respectively. In
addition, the allowance for loan losses as a percent of non-performing loans was 179.3% at March 31, 2007, compared to 178.0% at December 31, 2006.

Total deposits increased to $198.4 million at March 31, 2007 from $196.0 million at December 31, 2006. During the first three months of 2007, savings deposits increased by $1.5 million, or
1.8%, and money market balances increased by $1.1 million, or 20.9% . Balances of non-interest bearing balances increased by $275,000 or 1.0%, while time deposits increased by $204,000, or less than one percent. Other interest bearing
deposits decreased by $682,000, or 5.5%, during the first quarter of 2007.

17

---



FHLB borrowings increased from $20.2 million at December 31, 2006 to $23.3 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 March 31, 2007 and 2006

General

During the three months ended March 31, 2007, the Company recorded net income of $837,000, compared to $808,000 for the first quarter of 2006. The increase in net income is comprised of a decrease in the provision of loan
losses of $115,000, a $102,000 increase in non-interest income, a decrease in non-interest expense of $116,000, and a $19,000 decrease in income tax expense, partially offset by a decrease in net interest income of
$323,000.

Diluted earnings per share were $0.10 per diluted share for the quarter ended March 31, 2007 compared to $0.09 for the same quarter of 2006. Average diluted shares decreased to 8,076,802 for
the first quarter of 2007 from 9,396,254 in the same period of 2006 due to the Company's stock repurchases over the past four quarters.

Net Interest Income

Net interest income before loan loss provision for the quarter ended March 31, 2007 decreased by $323,000, or 8.9%, as compared to the same quarter of 2006. This decrease is attributable to
higher deposit and borrowing interest expense and a lower average balance of earning assets, partially offset by increased yields on the Company's earning assets.

Interest Income

Interest income decreased to $4.3 million for the quarter ended March 31, 2007 from $4.4 million for the same quarter of 2006. Average loan balances for the first quarter of 2007 were
$263.9 million, an increase of $11.6 million over the average outstanding loans for the first quarter of 2006. The yield on the Company's loan portfolio for the quarter ended March 31, 2007 increased to 6.54% from a yield of 6.40% for the
same period last year. Interest income on securities declined $55,000 from $130,000 for the quarter ended March 31, 2006 to $75,000 for the quarter ended March 31, 2007. Comparatively, the average balance of securities declined by
$4.3 million, or 39.0%, from the first quarter of 2006 to $6.8 million for the current quarter while the yield on the Company's securities decreased from 5.66% to 5.38% . Finally, interest income on federal funds sold and other interest
bearing deposits decreased by $286,000 to $14,000 for the quarter ended March 31, 2007 from the same quarter in 2006. Average balances of federal funds sold decreased by $26.9 million, to $1.2 million at March 31, 2007 from $28.1
million at March 31, 2006, due to the Company's investments in Bank-owned life insurance, purchases of treasury stock and loan portfolio funding over the past year.

Interest Expense

Interest expense increased to $1.0 million in the quarter ended March 31, 2007 from $785,000 for the same quarter of 2006. Interest expense on deposits increased to $782,000 for the
quarter ended March 31, 2007 from $704,000 for the quarter ended March 31, 2006, due to rising rates paid on time deposits consistent with current market rates. Interest expense on borrowed funds increased to $263,000 for the quarter ended
March 31, 2007 from $81,000 for the comparative quarter of 2006 primarily due to an increase in the average balance of borrowings to $22.4 million in the current quarter compared to $9.2 million in the first quarter of 2006. The
increased debt level was used to finance growth in the loan portfolio, and the aforementioned investment in Bank-owned life insurance and treasury stock. The cost of these funds increased to 4.76% in the first quarter of 2007, compared to 3.55% in
the same period of 2006, due to increases in borrowing rates.

18

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Provision for Loan Losses

The Company recorded no provision for loan losses in the first quarter of 2007 compared to a provision of $115,000 in the first quarter of 2006. During the current quarter, loan recoveries exceeded loan charge-offs by
$9,000, compared to net charge-offs of $117,000 in the first quarter of 2006. Asset quality remained favorable at March 31, 2007 with non-performing loans as a percent of loans of 0.41% and the allowance for loan losses as a percent of
non-performing loans of 179.3% at March 31, 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 0.73% at March 31, 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 $102,000 to $526,000 in the first quarter of 2007 from $424,000 in the same period of 2006. The increase is primarily attributable to earnings related to
increases in cash surrender value of Bank-owned life insurance totaling $94,000. In the first quarter of 2006 the Company realized a $11,000 gain on the sale of an investment security; no securities were sold in the first quarter of
2007.

Non-interest expense decreased by $116,000 to $2.5 million in the current quarter compared to $2.6 million in the same period of 2006, primarily due to decreases in legal, professional fee
and promotional expenditures in the current quarter.

Income tax expense for the first quarter of 2007 decreased to $466,000 from $485,000 in the same period of 2006, due to the increases in tax exempt income in the current quarter resulting from
the Company's investment in Bank-owned life insurance.

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 $62.7 million.  At March 31, 2007, the Bank had outstanding
borrowings of $15.2 million on this line of credit, as well as outstanding advances and amortizing notes totaling $8.1 million.

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

The Company's primary investing activities include the origination of loans and to a lesser extent the purchase of investment securities. For the three months ended March 31, 2007, the Company
originated loans of approximately $14.7 million, compared to $9.6 of loans originated in the first three months of 2006.

At March 31, 2007, the Company had loan commitments to borrowers of approximately $12.9 million, and available letters and lines of credit of approximately $18.7 million.

19

---



Time deposit accounts scheduled to mature within one year were $44.0 million at March 31, 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 March 31, 2007, the Bank exceeded each of the applicable regulatory capital requirements.  The Bank's leverage (Tier 1) capital at March 31, 2007 was $64.3 million, or 21.23% 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 $15.1million, 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% . At March 31, 2007, the Bank had a total risk-based capital ratio of 28.86% .

The Company paid cash dividends of $0.08 per share during the three-month period ended March 31, 2007 totaling $655,000.

During the first quarter of 2007, the Company's Board of Directors authorized the repurchase of 423,000 of the Company's outstanding common shares over the following twelve month period. Through March
31, 2007, $1.7 million was expended to repurchase 135,000 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.

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" in 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 significant 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

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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                                          
|--------- |  | -----------------------------------------------------------
|          |  |                                                            
|          |  |                                                            
|Item
1
A. |  | Risk Factors                                               
|          |  |                                                            
|          |  |                                                            
|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 106-18 (a)(3) under the Securities Exchange Act
of 1934) of the Company's common stock during the quarter ended March 31, 2007.

|COMPANY PURCHASES OF EQUITY SECURITIES |  |                                                    
|-------------------------------------- |  | ---------------------------------------------------
|                                      
|                                       |  | (a) Total Number
  of Shares (or
  Units) Purchased
|Period                                 |  |                                                    
|January 1, 2007                        |  | -                                                  
|through January                        |  |                                                    
|31, 2007                               |  |                                                    
|February 1, 2007                       |  | 75,000                                             
|through February                       |  |                                                    
|28, 2007                               |  |                                                    
|March 1, 2007                          |  | 60,000                                             
|through March                          |  |                                                    
|31, 2007                               |  |                                                    
|Total                                  |  | 135,000                                            

|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                                                                                                                        
|------- |  | --------------------------------------------------------------------------------------------------------------------------------
|       
|2.1     |  | Amended and Restated Plan of Conversion and Agreement and Plan of Reorganization. (1)                                           
|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   |  | 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.                                         
|   

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.

22

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

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