UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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 June 30, 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 | (I.R.S. Employer   
|incorporation or organization)  | Identification No.)

100 West Dominick Street, Rome, NY 13440-5810(Address of Principal executive offices)(315) 336-7300(Registrant's telephone number, including area code)

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

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 _X__                           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 _X_

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

|                             |  | Outstanding at
|---------------------------- |  | --------------
|Class                        |  | August 3, 2007
|Common Stock, par value $.01 |  | 8,193,926     

1

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ROME BANCORP, INC.FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 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                         |  | 14  
|ITEM 3.  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  |  | 23  
|ITEM 4.  | CONTROLS AND PROCEDURES                                     |  | 23  
|        
|PART II  | OTHER INFORMATION                                           |  |     
|        
|ITEM 1.  | LEGAL PROCEEDINGS                                           |  | 23  
|ITEM 1A. | RISK FACTORS                                                |  | 23  
|ITEM 2.  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |  | 24  
|ITEM 3.  | DEFAULTS UPON SENIOR SECURITIES                             |  | 24  
|ITEM 4.  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS         |  | 24  
|ITEM 5.  | OTHER INFORMATION                                           |  | 25  
|ITEM 6.  | EXHIBITS                                                    |  | 25  
|        
|         | SIGNATURES                                                  |  | 26  

2

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PART I FINANCIAL INFORMATION

Item 1. Financial Statements

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

|                                                                       |  |   | (Unaudited) |   |  |   |              |  
|---------------------------------------------------------------------- |  | - | ----------- | - |  | - | ------------ | -
|                                                                       |  |   | June 30,    |   |  |   | December 31, |  
|                                                                       |  |   | 2007        |   |  |   | 2006         |  
|Assets                                                                 |  |   |             |   |  |   |              |  
|                                                                      
|Cash and due from banks                                                |  | $ | 8,020       |   |  | $ | 6,769        |  
|Federal funds sold and other short-term investments                    |  |   | 1,127       |   |  |   | 1,089        |  
|Total cash and cash equivalents                                        |  |   | 9,147       |   |  |   | 7,858        |  
|Securities available for sale, at fair value                           |  |   | 3,394       |   |  |   | 4,319        |  
|Securities held to maturity (fair value of $1,156 and $1,175           |  |   |             |   |  |   |              |  
|at June 30, 2007 and December 31, 2006, respectively)                  |  |   | 1,167       |   |  |   | 1,178        |  
|Federal Home Loan Bank Stock                                           |  |   | 1,629       |   |  |   | 1,344        |  
|Loans                                                                  |  |   | 274,623     |   |  |   | 264,537      |  
|Less: Allowance for loan loss                                          |  |   | (1,958      | ) |  |   | (1,965       | )
|Net loans                                                              |  |   | 272,665     |   |  |   | 262,572      |  
|Premises and equipment, net                                            |  |   | 6,648       |   |  |   | 6,072        |  
|Accrued interest receivable                                            |  |   | 1,087       |   |  |   | 1,094        |  
|Bank-owned life insurance                                              |  |   | 8,401       |   |  |   | 8,215        |  
|Other assets                                                           |  |   | 6,757       |   |  |   | 6,107        |  
|Total assets                                                           |  | $ | 310,895     |   |  | $ | 298,759      |  
|                                                                      
|Liabilities & Equity                                                   |  |   |             |   |  |   |              |  
|                                                                      
|Liabilities                                                            |  |   |             |   |  |   |              |  
|Deposits:                                                              |  |   |             |   |  |   |              |  
|Non-interest bearing                                                   |  | $ | 32,506      |   |  | $ | 28,042       |  
|Savings                                                                |  |   | 82,632      |   |  |   | 84,089       |  
|Money market                                                           |  |   | 7,299       |   |  |   | 5,123        |  
|Time                                                                   |  |   | 70,775      |   |  |   | 66,401       |  
|Other interest bearing                                                 |  |   | 12,561      |   |  |   | 12,350       |  
|Total deposits                                                         |  |   | 205,773     |   |  |   | 196,005      |  
|Borrowings                                                             |  |   | 24,957      |   |  |   | 20,172       |  
|Other liabilities                                                      |  |   | 5,510       |   |  |   | 5,551        |  
|Total liabilities                                                      |  |   | 236,240     |   |  |   | 221,728      |  
|                                                                      
|Shareholders' equity                                                   |  |   |             |   |  |   |              |  
|Common Stock, $.01 par value; authorized: 30,000,000 shares;           |  |   |             |   |  |   |              |  
|issued and outstanding: 9,881,983 and 8,335,811 shares at June 30,     |  |   |             |   |  |   |              |  
|2007 and 9,726,572 and 8,461,572 shares at December 31, 2006           |  |   | 99          |   |  |   | 97           |  
|Additional paid-in capital                                             |  |   | 61,483      |   |  |   | 60,712       |  
|Retained earnings                                                      |  |   | 35,931      |   |  |   | 35,643       |  
|Accumulated other comprehensive income (loss)                          |  |   | (635        | ) |  |   | (633         | )
|Treasury stock; 1,546,172 shares at June 30, 2007 and 1,265,000 shares |  |   |             |   |  |   |              |  
|at
 December 31, 2006                                                  |  |   | (19,852     | ) |  |   | (16,307      | )
|Unallocated shares of employee stock ownership plan (ESOP); 393,189    |  |   |             |   |  |   |              |  
|shares at June 30, 2007 and 416,171 shares at December 31, 2006        |  |   | (2,371      | ) |  |   | (2,481       | )
|Total shareholders' equity                                             |  |   | 74,655      |   |  |   | 77,031       |  
|Total liabilities and shareholders' equity                             |  | $ | 310,895     |   |  | $ | 298,759      |  

See accompanying notes to unaudited condensed consolidated financial statements.

3

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

|                                                    |  |   | For the three months ended |  |  |   | For the six months ended |  
|--------------------------------------------------- |  | - | -------------------------- |  |  | - | ------------------------ | -
|                                                    |  |   | June
    30,               |  |  |   | June 30,                 |  
|                                                    |  |   | 2007                       |  |  |   | 2006                     |  
|                                                    |  |   |                            |  |  |   | (Restated)               |  
|Interest income:                                    |  |   |                            |  |  |   |                          |  
|Loans                                               |  | $ | 4,330                      |  |  | $ | 4,011                    |  
|Securities                                          |  |   | 76                         |  |  |   | 100                      |  
|Other short-term investments                        |  |   | 14                         |  |  |   | 276                      |  
|Total interest income                               |  |   | 4,420                      |  |  |   | 4,387                    |  
|                                                   
|Interest expense:                                   |  |   |                            |  |  |   |                          |  
|Deposits                                            |  |   | 859                        |  |  |   | 774                      |  
|Borrowings                                          |  |   | 284                        |  |  |   | 79                       |  
|Total interest expense                              |  |   | 1,143                      |  |  |   | 853                      |  
|                                                   
|Net interest income                                 |  |   | 3,277                      |  |  |   | 3,534                    |  
|                                                   
|Provision for loan losses                           |  |   | -                          |  |  |   | -                        |  
|Net interest income after provision for loan losses |  |   | 3,277                      |  |  |   | 3,534                    |  
|                                                   
|Non-interest income:                                |  |   |                            |  |  |   |                          |  
|Net gain on securities transactions                 |  |   | 11                         |  |  |   | -                        |  
|Other                                               |  |   | 544                        |  |  |   | 466                      |  
|Total non-interest income                           |  |   | 555                        |  |  |   | 466                      |  
|                                                   
|                                                   
|Non-interest expense:                               |  |   |                            |  |  |   |                          |  
|Salaries and employee benefits                      |  |   | 1,451                      |  |  |   | 2,769                    |  
|Building, occupancy and equipment                   |  |   | 475                        |  |  |   | 457                      |  
|Other                                               |  |   | 735                        |  |  |   | 811                      |  
|Total non-interest expense                          |  |   | 2,661                      |  |  |   | 4,037                    |  
|                                                   
|                                                   
|Income (loss) before income tax expense             |  |   | 1,171                      |  |  |   | (37                      | )
|Income tax expense                                  |  |   | 424                        |  |  |   | 41                       |  
|Net income (loss)                                   |  | $ | 747                        |  |  | $ | (78                      | )
|                                                   
|Basic earnings (loss) per share                     |  | $ | 0.10                       |  |  | $ | (0.01                    | )
|Diluted earnings (loss) per share                   |  | $ | 0.09                       |  |  | $ | (0.01                    | )

See accompanying notes to unaudited condensed consolidated financial statements.

4

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

|                                        |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      | Accumulated |             |   |        |   |     |   |        |       |        
|--------------------------------------- |  | ------ | -- |  | ------- | - | ---------- | -------- |  | - | ------ | -------- | - | - | ------------- | ------- | - | ------ | ---- | ----------- | ----------- | - | ------ | - | --- | - | ------ | ----- | -------
|                                        |  |        |    |  |         |   | Additional |          |  |   |        |          |   |   |               |         |   | other  |      |             | Unallocated |   |        |   |    
|                                        |  | Common |    |  | Paid-in |   |            | Retained |  |   |        | Treasury |   |   | comprehensive |         |   | ESOP   |      |             |             |  
|                                        |  | stock  |    |  | Capital |   |            | earnings |  |   |        | Stock    |   |   | Income (loss) |         |   | shares |      |             | Total      
|Balances at January 1, 2006             |  | $      | 97 |  |         | $ | 60,013     |          |  | $ | 35,983 |          |   | $ | -             |         |   | $      | 85   |             |             | $ | (2,700 | ) |     | $ | 93,478 |      
|Comprehensive income:                   |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      |             |             |   |        |   |     |   |        |       |        
|Net Income                              |  |        |    |  |         |   | -          | -        |  |   |        | 730      |   |   |               | -       |   |        |      | -           |             |   |        | - | -   |   |        |       | 730    
|Other comprehensive loss                |  |        |    |  |         |   | -          | -        |  |   |        | -        |   |   |               | -       |   |        |      | (47         | )           |   |        | - | -   |   |        |       | (47    
|Total comprehensive income              |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      |             |             |   |        |   |     |   |        |       | 683    
|Purchase of 1,025,900 treasury shares   |  |        |    |  |         |   |            | -        |  |   |        | -        |   |   |               | (13,234 | ) |        |      | -           |             |   |        |   |     |   |        |       | (13,234
|Transfer of treasury shares to RRP plan |  |        |    |  |         |   | (1,511     | )        |  |   | -      |          |   |   | 1,511         |         |   |        | -    |             |             |   |        |   |     |   |        | -     |        
|Amortization of unearned compensation   |  |        |    |  |         |   | 1,489      |          |  |   | -      |          |   |   | -             |         |   |        | -    |             |             |   |        |   |     |   |        | 1,489 |        
|Dividends paid ($0.15 per share)        |  |        |    |  |         |   | -          | -        |  |   |        | (1,385   | ) |   |               | -       |   |        |      | -           |             |   |        | - | -   |   |        |       | (1,385 
|Exercise of stock options               |  |        | -  |  |         |   |            | 186      |  |   |        | -        |   |   |               | -       |   |        |      | -           |             |   |        |   | -   |   |        |       | 186    
|ESOP shares released for                |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      |             |             |   |        |   |     |   |        |       |        
|allocation (22,982 shares)              |  |        |    |  |         |   |            | 167      |  |   |        | -        |   |   |               | -       |   |        |      | -           |             |   |        |   | 109 |   |        |       | 276    
|Balances at June 30, 2006               |  | $      | 97 |  |         | $ | 60,344     |          |  | $ | 35,328 |          |   | $ | (11,723       | )       |   | $      | 38   |             |             | $ | (2,591 | ) |     | $ | 81,493 |      
|                                        |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      |             |             |   |        |   |     |   |        |       |        
|Balances at January 1, 2007             |  | $      | 97 |  |         | $ | 60,712     |          |  | $ | 35,643 |          |   | $ | (16,307       | )       |   | $      | (633 | )           |             | $ | (2,481 | ) |     | $ | 77,031 |      
|Comprehensive income:                   |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      |             |             |   |        |   |     |   |        |       |        
|Net Income                              |  |        | -  |  |         |   |            | -        |  |   |        | 1,584    |   |   |               | -       |   |        |      | -           |             |   |        |   | -   |   |        |       | 1,584  
|Other comprehensive loss                |  |        | -  |  |         |   |            | -        |  |   |        | -        |   |   |               | -       |   |        |      | (2          | )           |   |        |   | -   |   |        |       | (2     
|Total comprehensive income              |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      |             |             |   |        |   |     |   |        |       | 1,582  
|Purchase of 281,172 treasury shares     |  |        | -  |  |         |   |            | -        |  |   |        | -        |   |   |               | (3,545  | ) |        |      | -           |             |   |        |   | -   |   |        |       | (3,545 
|Amortization of unearned compensation   |  |        | -  |  |         |   |            | 129      |  |   |        | -        |   |   |               | -       |   |        |      | -           |             |   |        |   | -   |   |        |       | 129    
|Dividends paid ($0.16 per share)        |  |        | -  |  |         |   |            | -        |  |   |        | (1,296   | ) |   |               | -       |   |        |      | -           |             |   |        |   | -   |   |        |       | (1,296 
|Exercise of stock options               |  |        | 2  |  |         |   |            | 466      |  |   |        | -        |   |   |               | -       |   |        |      | -           |             |   |        |   | -   |   |        |       | 468    
|ESOP shares released for                |  |        |    |  |         |   |            |          |  |   |        |          |   |   |               |         |   |        |      |             |             |   |        |   |     |   |        |       |        
|allocation (22,982 shares)              |  |        | -  |  |         |   |            | 176      |  |   |        | -        |   |   |               | -       |   |        |      | -           |             |   |        |   | 110 |   |        |       | 286    
|Balances at June 30, 2007               |  | $      | 99 |  |         | $ | 61,483     |          |  | $ | 35,931 |          |   | $ | (19,852       | )       |   | $      | (635 | )           |             | $ | (2,371 | ) |     | $ | 74,655 |      

See accompanying notes to unaudited condensed consolidated financial statements.

5

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

|                                                     |  |   | 2007    |   |  |   | 2006    |  
|---------------------------------------------------- |  | - | ------- | - |  | - | ------- | -
|Cash flows from operating activities:                |  |   |         |   |  |   |         |  
|Net income                                           |  | $ | 1,584   |   |  | $ | 730     |  
|Adjustments to reconcile net income to net cash      |  |   |         |   |  |   |         |  
|Provided by operating activities:                    |  |   |         |   |  |   |         |  
|Depreciation and amortization                        |  |   | 289     |   |  |   | 268     |  
|Decrease in accrued interest receivable              |  |   | 7       |   |  |   | 40      |  
|Net gain on securities sold                          |  |   | (11     | ) |  |   | (11     | )
|Provision for loan losses                            |  |   | -       |   |  |   | 115     |  
|Loss on disposal of fixed asset                      |  |   | -       |   |  |   | 7       |  
|Net accretion on securities                          |  |   | (3      | ) |  |   | (6      | )
|Proceeds from sales of loans                         |  |   | 976     |   |  |   | 543     |  
|Net gain on loans sold                               |  |   | (11     | ) |  |   | (8      | )
|Originations of loans held for sale                  |  |   | (965    | ) |  |   | (535    | )
|(Decrease) increase in other liabilities             |  |   | (41     | ) |  |   | 238     |  
|Increase in cash surrender value of life insurance   |  |   | (186    | ) |  |   | (31     | )
|Increase in other assets                             |  |   | (634    | ) |  |   | (676    | )
|Allocation of ESOP shares                            |  |   | 286     |   |  |   | 276     |  
|Amortization of unearned compensation                |  |   | 129     |   |  |   | 1,489   |  
|Net cash provided by operating activities            |  |   | 1,420   |   |  |   | 2,439   |  
|                                                    
|Cash flows from investing activities:                |  |   |         |   |  |   |         |  
|Net increase in loans                                |  |   | (10,093 | ) |  |   | (2,612  | )
|Purchase of Bank owned life insurance                |  |   | -       |   |  |   | (8,000  | )
|Proceeds from sales of securities available for sale |  |   | 357     |   |  |   | 365     |  
|Proceeds from maturities and principal reductions of |  |   |         |   |  |   |         |  
|securities available for sale                        |  |   | 560     |   |  |   | 4,087   |  
|Purchases of Federal Home Loan Bank stock            |  |   | (285    | ) |  |   | (37     | )
|Proceeds from maturities and principal reductions of |  |   |         |   |  |   |         |  
|securities held to maturity                          |  |   | 12      |   |  |   | 232     |  
|Additions to premises and equipment                  |  |   | (862    | ) |  |   | (709    | )
|Net cash used in investing activities                |  |   | (10,311 | ) |  |   | (6,674  | )
|                                                    
|Cash flows from financing activities:                |  |   |         |   |  |   |         |  
|Increase in time deposits                            |  |   | 4,374   |   |  |   | 2,790   |  
|Increase (decrease) in other deposits                |  |   | 5,394   |   |  |   | (252    | )
|Repayments of borrowings                             |  |   | (2,415  | ) |  |   | (497    | )
|Additional borrowings                                |  |   | 7,200   |   |  |   | -       |  
|Purchase of treasury stock                           |  |   | (3,545  | ) |  |   | (13,234 | )
|Dividends paid                                       |  |   | (1,296  | ) |  |   | (1,385  | )
|Exercise of stock options                            |  |   | 468     |   |  |   | 186     |  
|Net cash provided by (used in) financing activities  |  |   | 10,180  |   |  |   | (12,392 | )
|                                                    
|Net increase (decrease) in cash and cash equivalents |  |   | 1,289   |   |  |   | (16,627 | )
|Cash and cash equivalents at beginning of period     |  |   | 7,858   |   |  |   | 34,235  |  
|Cash and cash equivalents at end of period           |  | $ | 9,147   |   |  | $ | 17,608  |  

Condensed Consolidated Statements of Cash Flows continued on next page.

6

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

|                                                  |  | 2007 |       | 2006
|------------------------------------------------- |  | ---- | ----- | ----
|Supplemental disclosure of cash flow information: |  |      |       |     
|Non-cash investing activities:                    |  |      |       |     
|Transfer of loans to other real estate            |  |      | -     |     
|Cash paid during the period for:                  |  |      |       |     
|Interest                                          |  | $    | 2,196 |     
|                                                  |  |      |       |     
|Income taxes                                      |  |      | 707   |     

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 June 30, 2007 and December 31, 2006 and for
the three and six month periods ended June 30, 2007 and 2006. All inter-company
accounts and transactions have been eliminated in consolidation. The accompanying
unaudited condensed  consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States
of America for interim financial information and with the instructions to Form
10-Q. Accordingly, they do not  include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. The preparation of financial statements
in conformity with accounting principles  generally accepted in the United States
of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial  statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. In the opinion of management, the unaudited
condensed consolidated financial statements include all necessary  adjustments,
consisting of normal recurring accruals, necessary for a fair presentation for
the periods presented.

The Company believes that the disclosures are adequate to make the information presented not misleading; however, the results of operations and other data presented for the periods presented are not
necessarily indicative of results to be expected for the entire fiscal year.

The data in the condensed consolidated balance sheet for December 31, 2006 was derived from the Company's 2006 Annual Report on Form 10-K.
That data, along with the interim financial information presented in the condensed consolidated balance sheet, statements of income, statement of shareholders'equity and comprehensive
income and statements of cash flows should be read in conjunction with the 2006 consolidated financial statements, including the notes thereto included in the Company's Annual Report on Form 10-K.

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

8

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(2) Earnings Per Share

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

(in thousands, except share and per share data)

|                                               |  |   | Three months ended |  |  |   | Six months ended |  
|---------------------------------------------- |  | - | ------------------ |  |  | - | ---------------- | -
|                                               |  |   | 2007               |  |  |   | 2006             |  
|Basic earnings per share:                      |  |   |                    |  |  |   |                  |  
|Income (loss) available to common shareholders |  | $ | 747                |  |  | $ | (78              | )
|Weighted average basic shares outstanding      |  |   | 7,854              |  |  |   | 8,766            |  
|                                              
|Basic earnings (loss) per share                |  | $ | 0.10               |  |  | $ | (0.01            | )
|                                              
|Diluted earnings per share:                    |  |   |                    |  |  |   |                  |  
|Income (loss) available to common shareholders |  | $ | 747                |  |  | $ | (78              | )
|Weighted average basic shares outstanding      |  |   | 7,854              |  |  |   | 8,766            |  
|Effect of dilutive securities:                 |  |   |                    |  |  |   |                  |  
|Stock options                                  |  |   | 6                  |  |  |   | 140              |  
|Restricted stock awards                        |  |   | 45                 |  |  |   | -                |  
|Weighted average diluted shares outstanding    |  |   | 7,905              |  |  |   | 8,906            |  
|                                              
|Diluted earnings (loss) per share              |  | $ | 0.09               |  |  | $ | (0.01            | )

(3) Other Comprehensive Income (Loss)

|                                                        |  |   | Three months ended |   |  |   | Six months ended |  
|------------------------------------------------------- |  | - | ------------------ | - |  | - | ---------------- | -
|                                                        |  |   | June 30,           |   |  |   | June 30,         |  
|                                                        |  |   | 2007               |   |  |   | 2006             |  
|Pension and postretirement adjustments                  |  | $ | 9                  |   |  | $ | -                |  
|Net change in unrealized gain (loss) on                 |  |   |                    |   |  |   |                  |  
|available-for-sale securities arising during the period |  |   | (2                 | ) |  |   | 52               |  
|Reclassification adjustment for net realized gain       |  |   |                    |   |  |   |                  |  
|included in net income                                  |  |   | (11                | ) |  |   | -                |  
|Other comprehensive income (loss), before tax           |  |   | 18                 |   |  |   | 52               |  
|Deferred tax expense (benefit)                          |  |   | 7                  |   |  |   | 21               |  
|                                                       
|Other comprehensive income (loss)                       |  |   | 11                 |   |  |   | 31               |  
|Net income (loss)                                       |  |   | 747                |   |  |   | (78              | )
|Total comprehensive income (loss)                       |  | $ | 758                |   |  | $ | (47              | )

9

---



(4)      Securities

Securities are summarized as follows (in thousands):

June
            30, 2007
      
      December
              31, 2006Amortized
      
      
      
      Fair
      
      
      
      Amortized
      
      
      
      FairCost
      
      
      
      value
      
      
      
      cost
      
      
      
      valueAvailable-for-sale:U.S.
          Government agencies
      
      $
      51
      
      
      $
      51
      
      
      $
      441
      
      
      $
      455State
          and municipal obligations
      
      
      1,855
      
      
      
      1,881
      
      
      
      2,335
      
      
      
      2,377Mortgage-backed
          securitiesFHLMC
      
      
      302
      
      
      
      304
      
      
      
      336
      
      
      
      339Total
            debt securities
      
      
      2,208
      
      
      
      2,236
      
      
      
      3,112
      
      
      
      3,171Equity
          and other securities
      
      
      1,137
      
      
      
      1,158
      
      
      
      1,137
      
      
      
      1,148Total
            available for sale
      
      $
      3,345
      
      
      $
      3,394
      
      
      $
      4,249
      
      
      $
      4,319Held-to-maturity:U.S.
          Government securities
      
      $
      1,001
      
      
      $
      989
      
      
      $
      1,001
      
      
      $
      997Mortgage-backed
          securitiesGNMA
      
      
      21
      
      
      
      22
      
      
      
      28
      
      
      
      29FHLMC
      
      
      1
      
      
      
      1
      
      
      
      2
      
      
      
      2Other
          bonds
      
      
      144
      
      
      
      144
      
      
      
      147
      
      
      
      147Total
            held to maturity
      
      $
      1,167
      
      
      $
      1,156
      
      
      $
      1,178
      
      
      $
      1,175FHLB stock
      
      $
      1,629
      
      
      $
      1,629
      
      
      $
      1,344
      
      
      $
      1,344


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

10

---



(5)      Loans

Loans are summarized as follows (in thousands):

June 30,
      
      
      
      December 31,2007
      
      
      
      2006Mortgage
            loans:Residential
          (1-4 family)
      
      $
      142,825
      
      
      $
      135,078Commercial
      
      
      52,586
      
      
      
      54,493Construction
          and land
      
      
      3,090
      
      
      
      2,562Total
          Mortgage loans
      
      
      198,501
      
      
      
      192,133Other loans:Commercial
      
      
      27,207
      
      
      
      24,189Automobile
          loans
      
      
      16,640
      
      
      
      17,779Property
          improvementand
            equipment
      
      
      15,504
      
      
      
      15,536Other
          consumer
      
      
      16,771
      
      
      
      14,900Total
          Other loans
      
      
      76,122
      
      
      
      72,404Total
          Loans
      
      $
      274,623
      
      
      $
      264,537


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

Three
              months ended
      
      
      
      Six
              months endedJune
                30,
      
      
      
      June
                30,2007
      
      
      
      2006
      
      
      
      2007
      
      
      
      2006Balance at beginning
          of period
      
      $
      1,974
      
      
      $
      1,958
      
      
      $
      1,965
      
      
      $
      1,960Provision charged
          to operations
      
      
      -
      
      
      
      -
      
      
      
      -
      
      
      
      115Loans charged
          off
      
      
      (48
      )
      
      
      (83
      )
      
      
      (77
      )
      
      
      (244
      )Recoveries
      
      
      32
      
      
      
      79
      
      
      
      70
      
      
      
      123Balance at end
          of period
      
      $
      1,958
      
      
      $
      1,954
      
      
      $
      1,958
      
      
      $
      1,954


The Company's recorded investment in loans that are considered impaired totaled $225,000 and $318,000 at June 30, 2007 and December 31, 2006, respectively. These impaired loans carried
allowances of $123,000 at June 30, 2007 and $177,000 as of year-end 2006. The average recorded investment in impaired loans was $258,000 and $358,000 in the first six months of 2007 and 2006, respectively. The Company recognized no
interest on impaired loans during the three and six month periods ended June 30, 2007 and 2006.

11

---



The principal balances of loans not accruing interest amounted to $1.1 million at both June 30, 2007 and December 31, 2006. Loans 90 days past due and accruing interest amounted to $213,000
and $8,000 at June 30, 2007 and December 31, 2006, respectively. The differences between the amount of interest income that would have been recorded if non-accrual loans had been paid in accordance with their original terms and the amount of
interest income that was recorded during the six months ended June 30, 2007 and 2006 was $50,800 and $48,800, 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 June 30, 2007, unrecognized compensation cost related to these options was $196,000. 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:

|                                         |  | Six Months ended June 30, 2007
|---------------------------------------- |  | ------------------------------
|                                         |  | ( Dollars in thousands)       
|                                         |  |                               
|                                         |  |                               
|                                         |  | Shares                        
|Options outstanding, beginning of period |  | 524,892                       
|Exercised                                |  | (155,411                      
|Granted                                  |  | -                             
|Options outstanding at end of period     |  | 369,481                       
|Options exercisable at end of period     |  | 86,281                        

The aggregate intrinsic value of all options outstanding and exercisable at June 30, 2007 was $117,000. The intrinsic value of options exercised during the quarters ended June 30, 2007 and June 30, 2006 was

12

---



|    | $51,000 and $241,000, respectively. The intrinsic value of options exercised during the six months ended June 30, 2007 and 2006 was $1.6 million and $359,000, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | On May 24, 2006, the Company's Board of Directors awarded 168,300 shares of restricted stock to directors and certain key employees (RRP Plan) . These shares vest to the recipients ratably over a five year
period, or in certain cases upon retirement and the related unrecognized compensation cost related to this grant will be expensed over the same period. At May 24, 2006, certain awardees met the retirement eligibility criteria and accordingly,
stock-based compensation expense of $1.1 million related to their 2006 RRP awards was expensed immediately.At June 30, 2007, the unrecognized compensation cost attributable to
restricted stock awards was $820,000. One fifth of the 2006 restricted stock grants, or 33,660 shares, vested in the current quarter. The aggregate intrinsic value of restricted stock that is expected to vest in the future was $1.7 million
at June 30, 2007.
|   
|    | Compensation cost for the Company's stock option plans in the 2007 and 2006 second quarters was $12,000 and $357,000, respectively. For the six months ended June 30, 2007 and 2006 compensation cost
related to the stock option plans was $25,000 and $357,000, respectively. Compensation cost for the Company's restricted stock plans in the 2007 and 2006 second quarters was $52,000 and $1.1 million, respectively. For the six months
ended June 30, 2007 and 2006 compensation cost related to the restricted stock plans was $105,000 and $1.1 million, respectively.                                                                                                                                                                                                                                                                                                                                  
|   
|(7) | Pension and Postretirement Medical Benefit Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|    | The components of net periodic pension and postretirement benefit cost consisted of the following (in thousands):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   

|                                         |  |   | Three months ended June 30, |  
|---------------------------------------- |  | - | --------------------------- | -
|                                         |  |   | Pension benefits            |  
|Components of net periodic pension cost: |  |   | 2007                        |  
|Service cost                             |  | $ | -                           |  
|Interest cost                            |  |   | 108                         |  
|Expected return on plan assets           |  |   | (184                        | )
|Amortization                             |  |   | 10                          |  
|                                        
|Net periodic pension cost                |  | $ | (66                         | )
|                                        
|                                        
|                                         |  |   | Six months ended June 30,   |  
|                                         |  |   | Pension benefits            |  
|Components of net periodic pension cost: |  |   | 2007                        |  
|Service cost                             |  | $ | -                           |  
|Interest cost                            |  |   | 216                         |  
|Expected return on plan assets           |  |   | (368                        | )
|Amortization                             |  |   | 20                          |  
|                                        
|Net periodic pension cost                |  | $ | (132                        | )

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

13

---



option to measure eligible financial
      assets, and financial liabilities at fair value on an instrument by instrument
      basis, that are otherwise not permitted to be accounted for at fair value
      under other accounting standards. The election to use the fair value option
      is available when an entity recognizes a financial asset or financial liability.
      Subsequent changes in fair value must be recorded in earnings. This statement
      is effective as of the beginning of a companys second 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. The Company and its subsidiaries are
      subject to U.S. federal income tax as well as various other state income
      taxes. The Company is no longer subject to examination by taxing authorities
      for years before 2002. The Company does not expect the total amount of
      unrecognized tax benefits to significantly increase in the next twelve
      months. The Company recognizes interest related
      to income tax matters as interest expense and penalties related to income
      tax matters as other expense. The Company did not have any amounts accrued
      for interest and penalties at either January 1, 2007 or June 30, 2007. Item 2. Management's
        Discussion and Analysis of Financial Condition and Results of Operations


Forward-Looking Statements

Statements included in this discussion and in future filings by Rome Bancorp, Inc. ("Rome Bancorp" or the "Company") with the Securities and Exchange Commission, in Rome Bancorp press releases, and in oral statements made with the
approval of an authorized executive officer, which are not historical or current facts, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are subject to certain
risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Rome Bancorp wishes to caution readers not to place undue reliance on such forward-looking
statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect Rome Bancorp actual results, and could cause Rome Bancorp actual financial performance to
differ materially from that expressed in any forward-looking statement: (1) changes in the real estate market or local economy, (2) changes in interest rates, (3) changes in laws and regulations to which we are subject, and (4) competition in our
primary market area. Rome Bancorp disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated
events.

14

---



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, and 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 second quarter of 2007 was $747,000, an increase of $825,000 over the prior year's second quarter net loss of $78,000. The significant factors and trends impacting the second quarter of 2007, which
are discussed in greater depth below, were as follows:

- Net interest income decreased by $257,000 or 7.3% from the same quarter last year as a result of decreases in levels of average earning assets and an increase in interest
expense.
- Non-interest income increased by $89,000, or 19.1%, over the second quarter 2006 levels primarily due to increases in cash surrender value on bank-owned life
insurance.
- Non-interest expense decreased to $2.7 million in the second quarter of 2007 from $4.0 million in the same quarter of 2006. 2006 second quarter non-interest expense was
negatively impacted by the immediate expensing of stock-based compensation grants to recipients who were eligible for retirement at the date of grant.
- Income tax expense increased to $424,000 in the second quarter of 2007 from $41,000 in the same period last year in relation to the increase in pre-tax income.

Critical Accounting Policies

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

It is management's opinion that accounting estimates covering certain aspects of the business have more significance than others due to the relative importance of those areas to overall performance, or the level of

15

---



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.

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
|------------------------------------------ |  | ---------------------------------------------
|                                           |  | For the three months ended June 30, 2007     
|                                           |  |                                              
|                                           |  |                                              
|                                           |  |                                              
|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

---



|                                           |  | Average
            Balances, Interest and Average Yields
|------------------------------------------ |  | ---------------------------------------------------------
|                                           |  | For
              the six months ended June 30, 2007     
|                                           |  |                                                          
|                                           |  |                                                          
|                                           |  |                                                          
|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.

17

---



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
second 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 second 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 June 30, 2007             |   |  |                                            | Six months ended June 30, 2007 |  
|---------------------------------- |  | - | -------------------------------------------- | - |  | ------------------------------------------ | ------------------------------ | -
|                                   |  |   | Compared to Three months ended June 30, 2006 |   |  | Compared to Six months ended June 30, 2006 |                               
|                                  
|                                   |  |   | Increases (decreases) due to                 |  
|                                   |  |   | Rate                                         |   |  |                                            | Volume                         |  
|                                   |  |   | ( in thousands)                              |  
|Assets:                            |  |   |                                              |   |  |                                            |                                |  
|Interest-earning assets:           |  |   |                                              |   |  |                                            |                                |  
|Loans                              |  | $ | 82                                           |   |  | $                                          | 237                            |  
|Securities (1)                     |  |   | 9                                            |   |  |                                            | (41                            | )
|Federal funds sold & other         |  |   |                                              |   |  |                                            |                                |  
|Interest bearing deposits          |  |   | 1                                            |   |  |                                            | (263                           | )
|Total interest-earnings assets     |  |   | 92                                           |   |  |                                            | (67                            | )
|                                  
|Interest-bearing liabilities:      |  |   |                                              |   |  |                                            |                                |  
|Savings accounts                   |  |   | (42                                          | ) |  |                                            | (10                            | )
|Time deposits                      |  |   | 120                                          |   |  |                                            | 5                              |  
|Money market accounts              |  |   | 4                                            |   |  |                                            | 9                              |  
|Other interest bearing deposits    |  |   | (1                                           | ) |  |                                            | -                              |  
|Total interest-bearing deposits    |  |   | 81                                           |   |  |                                            | 4                              |  
|Borrowings                         |  |   | 76                                           |   |  |                                            | 129                            |  
|Total interest-bearing liabilities |  |   | 157                                          |   |  |                                            | 133                            |  
|                                  
|Net change (1)                     |  | $ | (65                                          | ) |  | $                                          | (200                           | )

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



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

Total assets at June 30, 2007 were $310.9 million, an increase of $12.1 million over assets of $298.8 million at December 31, 2006. The growth is attributable to the Company's loan portfolio which increased by
$10.1 million, or 3.8%, during the first half of 2007 from $264.5 million at December 31, 2006 to $274.6 million at June 30, 2007. During the first half of 2007, the Company originated approximately $28.6 million of loans, as
compared to approximately $22.3 million of loans originated in the same period of 2006. The majority of the loan originations for this year to date have been residential and commercial mortgage loans. Non-performing loans as a percentage of
total loans increased slightly to 0.46% at June 30, 2007 from 0.42% at December 31, 2006. The allowance for loan losses as a percentage of total loans was 0.71% and 0.74% at June 30, 2007 and December 31, 2006, respectively. In addition, the
allowance for loan losses as a percent of non-performing loans was 153.7% at June 30, 2007, compared to 178.0% at December 31, 2006.

Total deposits increased to $205.8 million at June 30, 2007 from $196.0 million at December 31, 2006, primarily due to increased marketing of checking and CD products.  During the first six
months of 2007, savings deposits decreased by $1.5 million, or 1.8%, while money market balances increased by $2.2 million, or 42.5%. Non-interest bearing balances increased by $4.5 million, or 15.9%, while time deposits increased by
$4.4 million, or 6.6%. Other interest bearing deposits increased by $211,000, or 1.7%, during the first half of 2007.

18

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FHLB borrowings increased from $20.2 million at December 31, 2006 to $25.0 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 June 30, 2007 and 2006

General

During the three months ended June 30, 2007, the Company recorded net income of $747,000, compared to a loss of $78,000 for the second quarter of 2006. The increase in net income is comprised of an $89,000 increase in
non-interest income and a decrease in non-interest expense of $1.4 million, partially offset by a $257,000 decrease in net interest income and a $383,000 increase in income tax expense.

Diluted earnings per share were $0.09 per diluted share for the quarter ended June 30, 2007 compared to a net loss per share of $0.01 for the same quarter of 2006. Average diluted shares
decreased to 7,905,246 for the second quarter of 2007 from 8,905,956 in the same period of 2006 due to the Company's stock repurchases over the past year.

Net Interest Income

Net interest income before loan loss provision for the quarter ended June 30, 2007 decreased by $257,000, or 7.3%, 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 was $4.4 million for the second quarters of both 2007 and 2006. Average loan balances for the second quarter of 2007 were $267.7 million, an increase of $14.9 million over
the average outstanding loans for the second quarter of 2006. The yield on the Company's loan portfolio for the quarter ended June 30, 2007 increased to 6.49% from a yield of 6.37% for the same period last year. Interest income on securities
declined $24,000 from $100,000 for the quarter ended June 30, 2006 to $76,000 for the quarter ended June 30, 2007. Comparatively, the average balance of securities declined by $2.7 million, or 32.5%, from the second quarter of 2006
to $5.6 million for the current quarter while the yield on the Company's securities increased from 5.82% to 6.44%. Finally, interest income on federal funds sold and other interest bearing deposits decreased by $262,000 to $14,000 for
the quarter ended June 30, 2007 from the same quarter in 2006. Average balances of federal funds sold decreased by $21.7 million, to $1.1 million at June 30, 2007 from $22.8 million at June 30, 2006, due to the Company's investments in
treasury stock and loan portfolio funding over the past year.

Interest Expense

Interest expense increased to $1.1 million in the quarter ended June 30, 2007 from $853,000 for the same quarter of 2006. Interest expense on deposits increased to $859,000 for the quarter
ended June 30, 2007 from $774,000 for the quarter ended June 30, 2006, due to rising rates paid on time deposits consistent with current market rates. Interest expense on borrowed funds increased to $284,000 for the quarter ended June 30,
2007 from $79,000 for the comparative quarter of 2006 primarily due to an increase in the average balance of borrowings to $23.7 million in the current quarter compared to $9.0 million in the second quarter of 2006. The increased debt
level was used to finance growth in the loan portfolio, and purchases of treasury stock. The cost of these borrowed funds increased to 4.81% in the second quarter of 2007, compared to 3.51% in the same period of 2006, due to increases in borrowing
rates.

19

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Provision for Loan Losses

The Company recorded no provision for loan losses in the second quarter of 2007 or 2006. During the current quarter, loan charge-offs were minimal. Asset quality remained favorable at June 30, 2007 with non-performing loans as a
percent of loans of 0.46% and the allowance for loan losses as a percent of non-performing loans of 153.7% at June 30, 2007, compared to 0.42% and 178.0%, respectively, at December 31, 2006. The allowance for loan losses as a percentage of loans was
at 0.71% at June 30, 2007 compared to 0.74% at December 31, 2006.

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

Non-Interest Income and Non-Interest Expense

Non-interest income increased $89,000 to $555,000 in the second quarter of 2007 from $466,000 in the same period of 2006. The increase is primarily attributable to increases in cash
surrender value of Bank-owned life insurance totaling $62,000. In the second quarter of 2007 the Company realized a $11,000 gain on the call of an investment security; no security gains or losses were realized in the second quarter of
2006.

Non-interest expense decreased by $1.3 million to $2.7 million in the current quarter compared to $4.0 million in the same period of 2006. In the second quarter of 2006, the Company
granted stock options and restricted stock awards which are being accounted for using the fair value methodology of SFAS No. 123(R). Total non-cash amortization expense related to these plans was $1.5 million in the quarter ended June 30, 2006,
the majority of which was immediate expensing of options and stock grants made to individuals eligible for retirement under the provisions of the Company's defined benefit plan.

Income tax expense for the second quarter of 2007 increased to $424,000 from $41,000 in the same period of 2006, due to the increase in taxable income.

Comparison of Operating Results for the Six-Month Periods Ended June 30, 2007 and 2006

General

During the six months ended June 30, 2007, the Company recorded net income of $1.6 million compared to $730,000 for the first half of 2006. The increase in net income is comprised of decreases in non-interest expense of
$1.5 million and loan loss provision of $115,000, and an increase in non-interest income of $192,000 which were partially offset by a $580,000 decrease in net interest income before loan loss provision and a $364,000 increase in
income tax expense.

Diluted earnings per share were $0.20 per diluted share for the six months ended June 30, 2007 in comparison to $0.08 per diluted share for the same period of 2006.  The increase in earnings
per share is directly attributed to the above referenced increase in year to date net income, as well as by a decrease in average outstanding diluted shares from 9,149,750 to 8,015,890.

Net Interest Income

Net interest income before loan loss provision for the six months ended June 30, 2007 decreased by $580,000, or 8.1%, as compared to the same period of 2006. This decrease is attributable to
increases in interest paid on deposits and borrowings and a decrease in the amount of average earning assets.

20

---



Interest Income

Interest income was $8.8 million for both six month periods ended June 30, 2007 and 2006. Average earning assets for the first half of 2007 decreased to $273.6 million from $287.7 million
as interest bearing funds were invested in Bank-owned life insurance and treasury stock. The yield on earning assets increased to 6.48% for the six months ended June 30, 2007, from 6.19% for the same period of 2006. Average loan balances for the
first six months of 2007 were $265.9 million, an increase of $13.4 million over the average outstanding loans for the same period of 2006. The yield on the Company's loan portfolio for the six months ended June 30, 2007 was 6.51% compared to
a yield of 6.38% for the same period last year, reflecting current market trends. Interest income on securities declined $78,000 from $230,000 for the six months ended June 30, 2006 to $152,000 for the six months ended June 30, 2007.
Comparatively, the average balance of securities declined by $3.5 million, or 35.0%, from the first half of 2006 to $6.5 million for the current year to date and the yield on the Company's securities decreased from 5.58% to 5.53% for the
same periods, respectively. Finally, interest income on federal funds sold and other interest bearing deposits decreased by $549,000 to $27,000 for the first half of 2007 from the same period in 2006 due to a decrease in average balances of
these funds from $25.5 million in the first half of 2006 to $1.1 million for the comparable period of 2007. As indicated above, these funds were invested in the Company's loan portfolio, treasury stock and Bank-owned life insurance.

Interest Expense

Interest expense increased to $2.2 million for the first half of 2007 from $1.6 million for the six months ended June 30, 2006. Interest expense on deposits increased to $1.6 million for
the half ended June 30, 2007 from $1.5 million for the six months ended June 30, 2006, due to rising rates paid on time deposits consistent with current market rates. Interest expense on borrowed funds increased to $547,000 for the six
months ended June 30, 2007 from $159,000 for the comparative period of 2006 primarily due to an increase in the average balance of borrowings to $23.1 million in the current half as compared to $9.1 million in the six months ended 2006.
The increased borrowings were used to fund the aforementioned investments that have been made over the past year.

Provision for Loan Losses

The Company recorded no provision for loan losses in the first half of 2007 as compared to a provision for loan losses in the amount of $115,000 in the same period of 2006. The Company's loss experience for the first six
months of 2007 has been favorable with year to date charge-offs of $7,000 compared to $121,000 for the same period of 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 by $192,000 to $1.1 million for the first six months of 2007 compared to $890,000 in the same period of 2006. This increase is primarily attributable to
current year earnings on Bank-owned life insurance which was acquired in mid 2006.

Non-interest expense decreased to $5.2 million in the first six months of 2007 compared to $6.7 million in the same period of 2006, primarily due to lower benefit costs related to the
Company's stock-based compensation plans. In the second quarter of 2006, the Company granted stock options and restricted stock awards which are being accounted for using the fair value methodology of SFAS No. 123(R). Total non-cash amortization
expense related to these plans was $1.5 million in the six months ended June 30, 2006, the

21

---



majority of which was immediate expensing of options and stock grants made to individuals eligible for retirement under the provisions of the Company's defined benefit plan. The ongoing 2007 amortization expense related to these
stock-based plans was $129,000.

Income tax expense for the first half of 2007 increased to $890,000 from $526,000 in the same period of 2006, due to the increase in pre-tax income.

Liquidity and Capital Resources

The Company's primary sources of funds consist of deposits, scheduled amortization and prepayments of loans and mortgage-backed securities, maturities of investments, interest bearing deposits at
other financial institutions and funds provided from operations. The Bank also has a written agreement with the Federal Home Loan Bank of New York that allows it to borrow up to $60.4 million.  At June 30, 2007, the Bank had outstanding
borrowings of $17.1 million on this line of credit, as well as outstanding advances and amortizing notes totaling $7.9 million.

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

The Company's primary investing activities include the origination of loans and to a lesser extent the purchase of investment securities. For the six months ended June 30, 2007, the Company originated
loans of approximately $28.6 million, compared to $22.3 million of loans originated in the same period of 2006.

At June 30, 2007, the Company had loan commitments to borrowers of approximately $11.2 million, and available letters and lines of credit of approximately $18.9 million.

Time deposit accounts scheduled to mature within one year were $47.3 million at June 30, 2007. Based on our deposit retention experience and current pricing strategy, we anticipate that a
significant portion of these time deposits will remain with us. We are committed to maintaining a strong liquidity position; therefore, the Company monitors its liquidity position on a daily basis. We anticipate that we will have sufficient funds to
meet our current funding commitments. The marginal cost of new funding, however, whether from deposits or borrowings from the Federal Home Loan Bank, will be carefully considered as we monitor our liquidity needs. Therefore, in order to minimize its
cost of funds, we may consider additional borrowings from the Federal Home Loan Bank in the future.

At June 30, 2007, the Bank exceeded each of the applicable regulatory capital requirements. The Bank's leverage (Tier 1) capital at June 30, 2007 was $65.4 million, or 21.04% 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 $15.5 million, or 5.0% of adjusted assets. To be classified as a well-capitalized bank by the OTS, the Bank must also have a
total risk-based capital ratio of 10.0%. At June 30, 2007, the Bank had a total risk-based capital ratio of 28.67%.

The Company paid cash dividends of $0.16 per share during the six-month period ended June 30, 2007 totaling $1.3 million.

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 June
30, 2007, $3.5 million was expended to repurchase 281,172 shares.

22

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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" under the heading "Management of Interest rate Risk" 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 changes in the Company's internal controls over financial reporting identified in connection with the evaluation that
occurred during the Company's last fiscal quarter that has materially affected, or that is reasonably likely to materially affect, the Company's internal control over financial reporting.

Part II - OTHER INFORMATION

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

23

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|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       
|        | The following table provides information with respect to purchases
made by or on behalf of the
  Company or any affiliated purchases (as defined in rule
  10b-18 (a)(3) under the Securities Exchange Act of 1934) of the Company's common
  stock during the quarter ended June 30, 2007.

|COMPANY PURCHASES OF EQUITY SECURITIES
|--------------------------------------
|                                      

| |                   |                  |                   |                      |                   |  |         |  | (d) Maximum
| | ----------------- | ---------------- | ----------------- | -------------------- | ----------------- |  | ------- |  | -----------
| |                   |                  |                   | (c) Total Number of  | Number (or       
| |                   |                  |                   | Shares (or Units)    | Approximate      
| |                   |                  |                   | Purchased as Part of | Dollar Value) of 
| |                   |                  |                   | Publicly Announced   | Shares (or Units)
| |                   |                  |                   | Plans or Programs    | that may yet be  
| |                   | (a) Total Number |                   |                      | Purchased under  
| |                   | of Shares (or    | (b) Average Price |                      | the Plans or     
| |                   | Units) Purchased | Paid per Share    |                      | Programs         
| | Period            |                  | (or Unit)         |                      |                  
| | April 1, 2007     |                  | 7,500             |                      | $12.30            |  | 7,500   |  | 280,500    
| | through April 30, |                  |                   |                      |                  
| | 2007              |                  |                   |                      |                  
| | May 1, 2007       |                  | 88,300            |                      | $12.50            |  | 88,300  |  | 192,200    
| | through May 31,   |                  |                   |                      |                  
| | 2007              |                  |                   |                      |                  
| | June 1, 2007      |                  | 50,372            |                      | $12.49            |  | 50,372  |  | 141,828    
| | through June 30,  |                  |                   |                      |                  
| | 2007              |                  |                   |                      |                  
| | Total             |                  | 146,172           |                      | $12.49            |  | 146,172 |  | 141,828    

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

The Company held its Annual Meeting of
      Shareholders ("Meeting") on May 2, 2007. The two proposals submitted to
      the shareholders at the Meeting were approved. The proposals submitted
      to the shareholders and the tabulation for votes for the proposals is as
      follows: 1.
      Election of three
            directors to serve for a three-year term to expire at the 2010 Annual
            Meeting. The number of votes cast with respect to this matter was
            as follows: Nominee
      
      For
      
      WithheldBruce R. Engelbert
      
      6,750,642
      
      111,421David C. Grow
      
      5,894,348
      
      967,715John A. Reinhardt
      
      6,659,065
      
      202,998  The following directors' terms continued
      after the meeting: Kirk B. Hinman, Charles M. Sprock, Michael J. Valentine
      and Dale A. Laval.


24

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2.
      Ratification of the
            appointment of Crowe Chizek and Company LLC as the Company's independent
            registered public accounting firm for the fiscal year ending December
            31, 2007; For
      
      Withheld
      
      Abstain6,832,717
      
      18,218
      
      11,128


|        |                  
|------- | -----------------
|        |                  
|Item 5. | Other Information
|        |                  
|        | None.            
|        |                  
|Item 6. | Exhibits         

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

25

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SIGNATURES

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

ROMEBANCORP,INC.

|Name                     |  | Title                    |  | Date          
|------------------------ |  | ------------------------ |  | --------------
|                        
|/s/Charles
    M. Sprock |  | Chairman of the Board,   |  | August 6, 2007
|Charles M. Sprock        |  | President and Chief      |  |               
|                         |  | Executive Officer        |  |               
|                         |  | (Principal Executive     |  |               
|                         |  | Officer)                 |  |               
|                        
|                        
|                        
|/s/David
    C. Nolan    |  | Executive Vice President |  | August 6, 2007
|David C. Nolan           |  | and Chief Financial      |  |               
|                         |  | Officer (Principal       |  |               
|                         |  | Financial Officer)       |  |               

26

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