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September 24, 1998


Securities and Exchange Commission
Washington, D.C. 20549


Ladies and Gentlemen:

We were previously principal accountants for Prime Bancorp, Inc.,
and, under the date of January 16, 1998, we reported on the
consolidated financial statements of Prime Bancorp, Inc. and
subsidiaries as of and for the years ended December 31, 1997 and
1996.  On September 17, 1998, our appointment as principal
accountants was terminated.  We have read Prime Bancorp's
statements included under Item 4 of its Form 8-K dated September
21, 1998, and we agree with such statements, except that (i) we are
not in a position to agree or disagree with Prime Bancorp, Inc.'s
statement that the change was approved by the audit committee and
reviewed by its board of directors and that shareholders will have
an opportunity to ratify the change at the 1999 annual meeting of
shareholders; (ii) we are not in a position to agree or disagree
with Prime Bancorp, Inc.'s statement that Ernst & Young LLP was not
engaged regarding the application of accounting principles to a
specified transaction or the type of audit opinion that might be
rendered on Prime Bancorp, Inc.'s financial statements and (iii) we
are not aware of the existence of a condition required to be
reported under Item 304(a)(1)(v) of Regulation S-K and therefore,
we take no position with respect to Prime Bancorp, Inc.'s
statements contained in paragraph (d) of Item 4.


Very truly yours,

/s/ KPMG Peat Marwick LLP
KPMG PEAT MARWICK LLP