EXHIBIT 10.3    FORM OF ESOP LOAN COMMITMENT LETTER

 
             [LETTERHEAD OF WEST ESSEX BANCORP, INC. APPEARS HERE]



                                 June __, 1998



West Essex Bancorp, Inc.
417 Bloomfield Avenue
Caldwell, New Jersey 07006

Dear Mr. Montanaro:

     This letter confirms West Essex Bancorp, Inc.'s (the "Company") commitment
to fund a leveraged ESOP in an amount sufficient to purchase 8% of the shares
offered in the West Essex Bank, FSB's reorganization into the two-tier form of
mutual holding company structure and concurrent stock offering by the Company
(the "Reorganization and Offering"), including those shares contributed to the
charitable foundation formed in connection with the Reorganization and Offering.
The commitment is subject to the following terms and conditions:

     1.   Lender:  West Essex Bancorp, Inc.
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     2.   Borrower:   West Essex Bank Employee Stock Ownership Plan.
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     3.   Security:  Unallocated shares of stock of the Company held in the West
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          Essex Bank Employee Stock Ownership Plan Trust.

     4.   Maturity:  Up to 10 years from takedown.
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     5.   Amortization:  Equal annual principal and interest payments
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     6.   Pricing:
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          a.   Lowest "prime rate" as published in the Wall Street Journal on
               the date of the loan transaction.

 
     8.   Interest Payments:
          ----------------- 

          a.   Annual on a 360 day basis.

     9.   Prepayment: Voluntary prepayments are permitted at any time.
          ----------                                                  

     10.  Conditions Precedent to Closing: Receipt by the Company of all
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          supporting loan documents in a form and with terms and conditions
          satisfactory to the Company and its counsel.  Consummation of the
          transaction will also be contingent upon no material adverse change
          occurring in the condition of West Essex Bank or the Company.


     If the terms and conditions are agreeable to you, please indicate your
acceptance by signing the enclosed copy and returning it to my attention.

                                    Sincerely,



 
                                    Dennis A. Petrello
                                    Executive Vice President and
                                       Chief Financial Officer


Accepted on Behalf of
West Essex Bank



By:  _____________________________________   Date: _________________________
     Leopold W. Montanaro
     President and Chief Executive Officer