Form 10-Q/A
                                 Amendment No. 1

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
                      15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

                  For the Quarterly Period Ended September 30, 1999.

                                       OR

                [  ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR
                     15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

                         Commission File Number: 0-26663

                            IPSWICH BANCSHARES, INC.
                            ------------------------
             (Exact name of Registrant as specified in its charter)

Massachusetts                                                         04-3459169
--------------------------------------------------------------------------------
State or other jurisdiction of                                  (I.R.S. Employer
incorporation or organization                                Identification No.)

23 Market Street, Ipswich, Massachusetts                                   01938
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

                                 (978) 356-7777
                                 --------------
              (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 Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirement for the past 90 days.

Yes [ X ]     No [  ]

The number of shares outstanding of the Registrant's common stock as of November
5, 1999 is:

--------------------------------------------------------------------------------
Common stock, par value $.10 per share                               2,525,427
                        (Class)                                    (Outstanding)

<PAGE>

Part 1. Financial Information

Item 1. Financial Statements

            The Company's  Consolidated  Statements of Changes in  Stockholders'
        Equity for Nine Months  Ended  September  30, 1999 and 1998 is set forth
        below in its entirety. The Statements of Changes in Stockholders' Equity
        filed with the Company's  Quarterly  Report on Form 10-Q for the quarter
        ended September 30, 1999 inadvertently omitted a line of type.

<PAGE>

<TABLE>
<CAPTION>
                                         IPSWICH BANCSHARES, INC. AND SUBSIDIARIES
                                 Consolidated Statements of Changes in Stockholders' Equity
                                       Nine Months Ended September 30, 1999 and 1998
                                       (Dollars in thousands, except for share data)
                                                        (unaudited)

                                                                                                   Accumulated
                                                                       Additional                       other          Total
                                           Shares           Common       paid-in      Retained     comprehensive   stockholders'
                                         outstanding         stock       capital      earnings          income        equity
                                         -----------         -----       -------      --------          ------        ------
<S>                                       <C>                 <C>         <C>           <C>               <C>        <C>
Balance at December 31, 1997              2,385,076           239         1,969         9,559             66         11,833

Comprehensive income:
  Net income                                      0             0             0         2,017              0          2,017
  Change in net unrealized gain/
      (loss) on investment securities
      available for sale                          0             0             0             0            140            140
                                          ---------     ---------     ---------     ---------      ---------      ---------
Total comprehensive income                        0             0             0         2,017            140          2,157

Cash dividends ($.12 per share)                   0             0             0          (286)             0           (286)
Stock options exercised                       7,210             0            18             0              0             18
Issuance of stock rights                          0             0            16             0              0             16
                                          ---------     ---------     ---------     ---------      ---------      ---------
Balance at September 30, 1998             2,392,286           239         2,003        11,290            206         13,738

Comprehensive income:
  Net income                                      0             0             0           621              0            621
Change in net unrealized gain/
    (loss) on investment securities
    available for sale                            0             0             0             0            (21)           (21)
                                          ---------     ---------     ---------     ---------      ---------      ---------
Total comprehensive income                        0             0             0           621            (21)           600

Cash dividends ($.05 per share)                   0             0             0          (121)             0           (121)
Stock options exercised                           0             0             0             0              0              0
Issuance of stock rights                          0             0             6             0              0              6
                                          ---------     ---------     ---------     ---------      ---------      ---------
Balance at December 31, 1998              2,392,286           239         2,009        11,790            185         14,223

Comprehensive income:
  Net income                                      0             0             0         2,381              0          2,381
Change in net unrealized gain/
    (loss) on investment securities
    available for sale                            0             0             0             0            (51)           (51)
                                          ---------     ---------     ---------     ---------      ---------      ---------
Total comprehensive income                        0             0             0         2,381            (51)         2,330

Cash dividends ($.15 per share)                   0             0             0          (373)             0           (373)
Stock options exercised                     133,141            14           227             0              0            241
Issuance of stock rights                          0             0            18             0              0             18
                                          ---------     ---------     ---------     ---------      ---------      ---------
Balance September 30, 1999                2,525,427           253         2,254        13,798            134         16,439
                                          =========     =========     =========     =========      =========      =========

</TABLE>
<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  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.

IPSWICH BANCSHARES, INC.

By:                         Date:                  February 17, 2000
         -----------------
         David L. Grey
         President and Chief Executive Officer

By:                         Date:                  February 17, 2000
         -----------------
         Francis Kenney
         Treasurer
         (Principal Financial Officer and Principal Accounting Officer)



<PAGE>



                                   SIGNATURES

Pursuant  to the  requirements  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.

IPSWICH BANCSHARES, INC.

By:      /s/ David L. Grey                  Date:      February 17, 2000
         -----------------
         David L. Grey
         President and Chief Executive Officer

By:      /s/Francis Kenney                  Date:      February 17, 2000
         -----------------
         Francis Kenney
         Treasurer
         (Principal Financial Officer and Principal Accounting Officer)