New Jersey		22-2953275
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

250 Oak Ridge Road, Oak Ridge, New Jersey		07438
(Address of principal executive offices)		(Zip Code)

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Part I    Financial Information
Item 1.		Financial Statements:
		Consolidated Balance Sheets—June 30, 2002 (unaudited) and December 31, 2001		3
		Consolidated Income Statements—Unaudited Three Months and Six Months Ended June 30, 2002 and 2001		4
		Consolidated Statements of Changes in Stockholders’ Equity—six months ended June 30, 2002 (unaudited) and 12 months ended December 31, 2001		5
		Consolidated Statements of Cash Flows—Unaudited six months ended June 30, 2002 and 2001		6
		Notes to Consolidated Financial Statements (unaudited)		7
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		16
Part II    Other Information
Item 1.		Legal Proceedings		17
Item 2.		Changes in Securities and Use of Proceeds		18
Item 3.		Defaults Upon Senior Securities		18
Item 4.		Submission of Matters to a Vote of Security Holders		18
Item 5.		Other Information		18
Item 6.		Exhibits and Reports on Form 8-K		18

ASSETS		June 30, 2002 (unaudited)				December 31, 2001
		(dollars in thousands)
Cash and due from banks		$	41,177			$	48,615
Federal funds sold			9,075				0
Total cash and cash equivalents			50,252				48,615
Investment securities available for sale			297,494				273,082
Investment securities held to maturity; fair value of $ 54,204 in 2002 and $72,101 in 2001			52,732				70,259
Loans			674,839				600,074
Plus: deferred costs			2,146				1,885
Less: allowance for possible loan losses			9,682				8,220
Net loans			667,303				593,739
Premises and equipment—net			25,528				24,785
Accrued interest receivable			5,318				5,041
Other assets			27,677				28,817
TOTAL ASSETS		$	1,126,304			$	1,044,338
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Non-interest bearing		$	211,206			$	206,783
Savings and interest bearing transaction accounts			516,082				470,563
Time deposits under $100			179,299				184,011
Time deposits $100 and over			71,433				50,753
Total deposits			978,020				912,110
Securities sold under agreements to repurchase			20,760				19,920
Long-term debt			31,006				21,004
Other liabilities			4,756				5,737
TOTAL LIABILITIES			1,034,542				958,771
Commitments and contingencies			—				—
Stockholders’ equity:
Common stock, no par value; authorized shares, 40,000,000 at June 30, 2002 and December 31, 2001; issued shares, 13,971,168 at June 30, 2002 and December 31, 2001; outstanding shares, 13,649,789 at June 30, 2002 and 13,679,345 at December 31, 2001			88,194				88,273
Retained Earnings (Accumulated Deficit)			3,357				(931	)
Treasury stock, at cost, 321,379 shares at June 30, 2002 and 291,823 shares at December 31, 2001			(3,892	)			(3,175	)
Accumulated other comprehensive income			4,103				1,400
TOTAL STOCKHOLDERS’ EQUITY			91,762				85,567
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,126,304			$	1,044,338
See accompanying notes to consolidated financial statements

		For the three months ended June 30,								For the six months ended June 30,
		2002				2001				2002			2001
		(unaudited)								(unaudited)
		(In thousands, except per share data)
INTEREST INCOME
Loans and fees		$	11,629			$	10,905			$	22,586		$	21,726
Federal funds sold			57				167				144			414
Taxable investment securities			4,124				3,975				8,104			7,822
Tax exempt investment securities			566				545				1,126			1,080
TOTAL INTEREST INCOME			16,376				15,592				31,960			31,042
INTEREST EXPENSE
Deposits			3,810				5,366				7,761			11,091
Short-term borrowings			70				51				145			193
Long-term debt			408				390				771			659
TOTAL INTEREST EXPENSE			4,288				5,807				8,677			11,943
NET INTEREST INCOME			12,088				9,785				23,283			19,099
Provision for possible loan losses			750				400				1,500			800
NET INTEREST INCOME AFTER PROVISION FOR POSSIBLE LOAN LOSSES			11,338				9,385				21,783			18,299
NONINTEREST INCOME
Service charges on deposit accounts			1,471				1,403				2,884			2,642
Gains on sales of leases			45				229				98			484
Commissions and fees			537				342				993			597
Gains (losses) on the sales of securities			(11	)			(30	)			63			34
Other income			255				184				484			417
TOTAL NONINTEREST INCOME			2,297				2,128				4,522			4,174
NONINTEREST EXPENSE
Salaries and employee benefits			4,714				4,240				9,368			8,417
Net occupancy expense			864				738				1,653			1,482
Furniture and equipment			790				739				1,485			1,416
Stationery, supplies and postage			336				455				645			871
Other expenses			1,753				1,474				3,280			2,881
TOTAL NONINTEREST EXPENSE			8,457				7,646				16,431			15,067
Income before provision for income taxes			5,178				3,867