SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                        FORM 10-Q/A NO. 1

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
     ENDED MARCH 31, 1997, OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
     FROM _______________ TO _______________

Commission file number 0-16533


                     SOVEREIGN BANCORP, INC.
     (Exact name of registrant as specified in its charter)

     Pennsylvania                               23-2453088
(State or other jurisdiction                 (I.R.S. Employer
of incorporation or organization)            Identification No.)

  1130 Berkshire Boulevard
  Wyomissing, Pennsylvania                          19610
(Address of principal executive                   (Zip Code)
offices)

                         (610) 320-8400
      (Registrant's telephone number, including area code)

                               N/A
      (Former name, former address and former fiscal year,
                  if changed since last report)

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
requirements for the past 90 days.    Yes  X    No    

Applicable only to corporate issuers:

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: 
There were 65,976,000 shares of common stock, no par value,
outstanding as of May 13, 1997.

                   PART II - OTHER INFORMATION

Items 1 through 5 are not applicable or the responses are
negative.

Item 6 - Exhibits and Reports on Form 8-K.

     (a)  Exhibits.

          10.1      Employment Agreement, dated as of March 1,
                    1997, between Sovereign Bancorp, Inc.,
                    Sovereign Bank, a Federal Savings Bank, and
                    Jay S. Sidhu.

          27        Amended Financial Data Schedule.

     (b)  Reports on Form 8-K.

          Report on Form 8-K, dated March 17, 1997 (date of
          earliest event - March 17, 1997), contained pro forma
          financial information showing the effects of the merger
          of First State Financial Services, Inc. with and into
          Sovereign Bancorp, Inc., which was effective as of
          February 18, 1997, and the pending acquisition of
          Bankers Corp.

          Report on Form 8-K, dated February 13, 1997 (date of
          earliest event - February 5, 1997), described the
          Agreement and Plan of Merger dated February 5, 1997
          pursuant to which Sovereign will acquire Bankers Corp.

          Report on Form 8-K, dated February 6, 1997 (date of
          earliest event - February 6, 1997), contained a press
          release announcing the execution of an Agreement and
          Plan of Merger for Sovereign to acquire Bankers Corp.

          Report on Form 8-K, dated February 3, 1997 (date of
          earliest event - January 20, 1997), contained a press
          release announcing Sovereign's earnings for the year
          ended December 31, 1996 and a press release announcing
          an amendment to the timing of the 6 for 5 stock split
          on Sovereign common stock which was declared on
          January 16, 1997.

                           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.

                              SOVEREIGN BANCORP, INC.
                              (Registrant)

Date:  July 10, 1997          /s/ Mark R. McCollom              
                              Mark R. McCollom,
                              Chief Accounting Officer

                          EXHIBIT INDEX

     (a)  Exhibits.

          10.1      Employment Agreement, dated as of March 1,
                    1997, between Sovereign Bancorp, Inc.,
                    Sovereign Bank, a Federal Savings Bank, and
                    Jay S. Sidhu.

          27        Amended Financial Data Schedule.