Exhibit  99.1


[LOGO] KPMG                                      Telephone  516-425-6000
1305 Walt Whitman Road
Suite 200
Melville, NY  11747-4302


May 27, 1999


Securities and Exchange Commission
Washington, DC 20549

Ladies and Gentlemen:

We were previously principal  accountants for Reliance Bancorp,  Inc. and, under
the date of July 23, 1998, we reported on the consolidated  financial statements
of Reliance  Bancorp,  Inc. and  subsidiary as of June 30, 1998 and 1997 and for
each of the years in the three-year period ended June 30, 1998. On May 19, 1999,
our appointment as principal accountants was terminated.

We have read Reliance Bancorp,  Inc.'s  statements  included under Item 4 of its
Form 8-K, dated May 19, 1999 and we agree with such  statements  except that (1)
we are not in a position  to agree or disagree  with  Reliance  Bancorp,  Inc.'s
statement that the decision to change  accountants  was recommended by the Audit
Committee  of the  Board  of  Directors  and  approved  by the  entire  Board of
Directors  based upon such  recommendation  and (2) we are not in a position  to
agree or disagree with the statement that the Company engaged Arthur Andersen as
the Company's principal accountant.


Very truly yours,


/s/  KPMG LLP